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HomeMy Public PortalAboutCAFR For Year Ending June 30, 2007 optINTRODUCTORY SECTION Table of Contents, Letter of Transmittal, Organization Chart, Directory of Officials, Certificates of Awards and Achievements CITY OF RANCHO MIRAGE Comprehensive Annual Financial Report Year ended June 30, 2007 TABLE OF CONTENTS INTRODUCTORY SECTION: Pate Letter of Transmittal i Organizational Chart vii Directory of Officials viii Certificate of Achievement for Excellence in Financing Reporting (GFOA) ix FINANCIAL SECTION: Independent Auditors' Report Management's Discussion and Analysis (Required Supplementary Information) 1 3 Basic Financial Statements Government-wide Financial Statements: Statement of Net Assets 11 Statement of Activities 12 Fund Financial Statements: Government Funds: Balance Sheet 14 Reconciliation of the Balance Sheet - Statement of Net Assets 16 Statement of Revenues, Expenditures and Changes in Fund Balances 18 Reconciliation of Statement of Revenues, Expenditures and Changes In Fund Balances - Statement of Activities 20 CITY OF RANCHO MIRAGE Comprehensive Annual Financial Report Year ended June 30, 2007 TABLE OF CONTENTS, (CONTINUED) Pate Fiduciary Funds: Statement of Fiduciary Assets and Liabilities - Agency Funds 21 Notes to the Financial Statements 23 Required Supplementary Information Notes to Required Supplementary Information 89 Budgetary Comparison Schedules: General Fund 90 Library Special Revenue Fund 95 Fire tax Special Revenue Fund 96 Housing Authority Special Revenue Fund 97 Low Cost Housing Special Revenue Fund 98 Supplementary Schedules Non-Major Governmental Funds: Combining Balance Sheet 99 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 100 Non-Major Special Revenue Funds: Combining Balance Sheet 1.02 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 104 Budgetary Comparison Schedules 106 Debt Service Funds: Non-Major Balance Sheet 118 Non-Major Statement of Revenues, Expenditures and Changes in Fund Balance 119 CITY OF RANCHO MIRAGE Comprehensive Annual Financial Report Year ended June 30, 2007 TABLE OF CONTENTS, (CONTINUED) Page Budgetary Comparison Schedules 120 Capital Projects Funds: Non-Major Combining Balance Sheet 124 Non-Major Combining Statement of Revenues, Expenditures and Changes in Fund Balances 125 Budgetary Comparison Schedules 126 AGENCY FUNDS: Statement of Changes in Fiduciary Assets and Liabilities 132 STATISTICAL SECTION: • Net Assets by Component, Last Five Fiscal Years 134 • Changes in Net Assets, Last Five Fiscal Years 135 • Fund Balances of Governmental Funds, Last Five Fiscal Years 136 • Changes in Fund Balances of Governmental Funds, Last Five Fiscal Years 137 • Major Revenue Sources - Governmental Funds, Last Ten Fiscal Years 138 • Assessed and Estimated Value of Taxable Property, Last Ten Fiscal Years 140 • - Property Tax Rates - Direct and Overlapping Governments, Last Ten Fiscal Years 142 • Principal Property Tax Payers, Current Year and Ten Years Ago 143 • Property Tax Levies and Collections, Last Ten Fiscal Years 144 • Ratios of Outstanding Debt by Type, Last Ten Fiscal Years 145 • Ratio of General Bonded Debt Outstanding, Last Ten Fiscal Years 146 • Direct and Overlapping Debt 147 • Computation of Legal Debt Margin, Last Ten Fiscal Years 148 • Pledged Revenue Coverage, Last Ten Fiscal Years 149 • Demographic and Economic Statistics, Last Ten Calendar Years 150 • Principal Employers 151 • Full and Part-time Employees by Function, Last Ten Fiscal Years 152 • Operating Indicators by Function, Last Ten Fiscal Years 154 • Capital Assets by Function, Last Ten Fiscal Years 156 February 8, 2008 Citizens of the City of Rancho Mirage, Honorable Mayor and Members of the City Council It is with great pleasure that I present to you the Comprehensive Annual Financial Report (CAFR) of the City of Rancho Mirage for the fiscal year ended June 30, 2007. This document provides an overview of the City's financial activities during the past fiscal year. It has been prepared by the Finance Division of the Department of Administrative Services for the benefit of City Councilmembers, citizens, investors, grantors, employees and others who may have an interest in the financial well-being of the City. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City of Rancho Mirage. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Mayer Hoffman McCann P.C., Certified Public Accountants, have issued an unqualified ("clean") opinion on the City of Rancho Mirage's financial statements for the fiscal year ended June 30, 2007. The independent auditor's report is located at the front of the financial section of this report. Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. PROFILE OF THE CITY The City of Rancho Mirage, located in eastern Riverside County in Southern California, was incorporated on August 3, 1973 and became a Charter City on December 25, 1997 as a result of a citywide election. According to official State estimates, the City has a permanent population of 16,944 within a boundary of approximately 25 square miles. The City sits at the base of the beautiful Santa Rosa Mountains and is an integral part of the larger, world-renowned resort and retirement area known as the Coachella Valley. The City operates under the Council-Manager form of government. The five City Councilmembers are elected to four-year terms in alternate slates every two years. The Mayor is appointed by the City Council for a one-year period on a rotating basis. The Mayor presides over City Council meetings and represents the City at many public functions. The City Council also serves as the Boards of Directors of the Redevelopment Agency, Housing Authority, Community Services District and the Joint Powers Financing Authority component units as well as the Library. The City Council appoints the City Manager who heads the executive branch of the government, implements policies as directed and established by the City ADMINKTRATION COMMUNITY DCVCLOPMCNT FINANCC I+OUgNG AUTi+ORITY PUBLIC LIBRARY PUBLIC WORKS Tel. (760) 324-4511 Tel. (760) 328-2266 Tel. (760)'770-3207 Tel. (760) 770-3210 Tel. (760) 341-7323 Tel. (760) 770-3224 Fax. (760) 324 8830 Fax. (760) 324-9851 Fax. (760) 324-0528 Fax. (760) 770-3261 Fax. (760) 341-5213 Fax. (760) 770-3261 69-625 RIGRWAY 111 / RANCRO MIRNCC, CA 92270 www.ci.vancho-mirage.ca.Lis Council and manages the administrative and operational functions through the department directors. The City Manager appoints the department directors with the exception of the City Clerk and the City Attorney who are both appointed by the City Council. The City Manager also serves as the City Treasurer and the Executive Director of the Redevelopment Agency and Housing Authority. The City of Rancho Mirage provides a full range of services, including police and fire protection, affordable housing programs, a highly-regarded public library, the construction and maintenance of streets and other infrastructure as well as recreational and cultural activities. The City operates under a two-year budget cycle in order to achieve greater time and cost efficiencies in contrast to an annual budget. The City's annual operating and capital improvements budgets are adopted by resolutions for the two fiscal years that begin July ls`. Separate resolutions are adopted by the City Council and the Boards of Directors of the Library, Redevelopment Agency, Community Services District, Joint Powers Financing Authority and the Housing Authority for the specific funds under their supervision. During the month of April, in the second year of the two-year budget cycle, staff reviews City Council/Boards of Directors .priorities and the projected revenue and expenditure estimates of the second year budget to use as a basis for analyzing the adjustments necessary to the original second year budget. Staff then prepares a report to present the proposed adjustments to the City Council/Boards of Directors for their review and adoption, as presented or amended, at a public hearing during a scheduled City Council/Boards of Directors meeting in June. The budget document is categorized according to the City of Rancho Mirage's major entities - the City, the Redevelopment Agency and the Housing Authority. They are further subdivided into organizational units referred to as departments/divisions, programs or funds. Expenditures for General Fund Divisions cannot exceed amounts budgeted within the objects of salaries and benefits, operations and maintenance and capital such as furniture and equipment. For other funds, expenditures cannot exceed the total amount budgeted for each fund. The City Manager is authorized to transfer appropriations within an object of a General Fund Division and within total fund appropriations for other funds. The City Council/Boards of Directors approve all other changes. ECONOMIC CONDITIONS AND OUTLOOK Any discussion of Rancho Mirage finances must begin with an acknowledgment that Rancho Mirage is considered to be a "no-property-tax" City. The City did not have a separate property tax rate prior to the voter enactment of Proposition 13 in 1978 and is, therefore, prohibited from imposing one without a vote of the citizens. Thus, additional property tax revenue generated by development projects within the City, but not within the boundaries of the Rancho Mirage Redevelopment Agency, is not remitted to the City's General Fund. Instead, it is remitted to other taxing agencies such as Riverside County, school districts and other special districts. The only exception to this relates to land annexed to the City after June 30, 1980. In this instance, the City's General Fund receives 25% of the County's 30% share or 7.5% of the property taxes paid by those specific property owners. As a result, the City's General Fund only received 8.4% of its total revenue from property tax. The Rancho Mirage Redevelopment Agency encompasses close to 62% of the total acreage of the City. Additional property tax revenue resulting from increased assessed valuation within the boundaries of the Redevelopment Agency is remitted to the Redevelopment Agency and is known as tax increment revenue. After meeting requirements for pass-through payments to other taxing agencies, the 20% set-aside for low 11 and moderate income housing, debt service payments and administrative fees, the balance of tax increment revenue is transferred to the Whitewater and Northside Capital Project Funds for both capital and operating purposes. While the residential base is the single greatest asset of the community, the prestigious image of Rancho Mirage has also been enhanced by major nonresidential uses including three resort hotels - Rancho Las Palmas Resort and Spa, the reopening of the Ritz Carlton and Westin Mission Hills - Eisenhower Medical Center, the Betty Ford Center and The River at Rancho Mirage entertainment and retail center. These facilities are considered to be of the highest quality level with some receiving both national as well as international recognition. These uses, in conjunction with the strong residential base, have allowed Rancho Mirage to become a prominent community within the Coachella Valley. Rancho Mirage was one of the first communities in the Coachella Valley to capitalize on the demand for high quality residential/resort housing units in the Valley. As such, the City has traditionally had the unique advantage of widespread name recognition as one of the most affluent residential communities in the Valley. Within the context of continued growth within the Coachella Valley, the vast amount of vacant available land creates competition throughout the Valley for desirable new development types. Construction in Rancho Mirage in calendar year 2006 amounted to over $78 million in building permit valuations. Single family residential construction totaled over $32 million, commercial and other construction, including additions, renovations and public property, totaled over $46 million. Currently various residential projects, retail developments, medical facilities and office developments are in various stages of the planning process. Hotels, Sales Tax, Investments - The Big Three Together, the transient occupancy tax, sales tax and interest revenue made up approximately 55% of General Fund operating revenue. Economic conditions that affect the City's revenues are those factors that influence tourism, residential growth, consumer spending and investment returns. The three hotels in the City of Rancho Mirage noted above are considered to be first-class, destination resorts. Rancho Mirage has firmly established itself in a competitive position within the Coachella Valley with enhanced recognition by leisure and group resort travelers throughout the world. This position will be further strengthened as a result of the Ritz Carlton's approved $360 million construction and renovation project. Construction is underway to add a spa facility, develop 54 hotel villas, 24 tennis villas and a new hotel wing consisting of 54 units. The project includes fractional ownership and condominium hotel ownership of the new units developed. Transient occupancy receipts during FY 2006-07 were approximately $5.2 million - 21% of General Fund operating revenue which totaled approximately $24.7 million. General Fund sales tax revenue totaled approximately $5.5 million during FY 2006-07 - 22% of General Fund operating revenue. Retail sales will continue to grow as the population in the City of Rancho Mirage and the Coachella Valley continues to increase, along with the opening of new retail development projects. The continuing development of the final 10 acres within the 50-acre Monterey Marketplace will add substantial retail sales as this center is fast becoming one of the most popular shopping locations in the Coachella Valley. iii The Highway 111 corridor through Rancho Mirage is a 41h-mile-long major thoroughfare, with daily traffic exceeding 65,000 vehicles. It is recognized as the circulation and commercial axis of the Coachella Valley. The focus of the eastern-most portion of Highway 111 within Rancho Mirage is largely retail, restaurants and professional offices. In this area is The River at Rancho Mirage, the cornerstone of the City's revitalization of Highway 111. The 30-acre waterfront development offers an upscale shopping and entertainment experience in an environment that features a river, fountains and waterfalls. People from all confers of the Coachella Valley, Southern California and beyond are coming to enjoy the many amenities offered at The River. The resulting ripple effect along Highway 111 is now transforming this area into a unique and vibrant commercial "downtown" for the community. The City enjoys a substantial return on investments. Interest revenue earned by the City's General Fund, excluding interest earned on license tax revenue, totaled approximately $2.8 million during FY 2006-07, 11 % of General Fund operating revenue. Tourism With over 3.5 million people visiting the Desert annually, tourism helps drive the hotel and lodging industry in the Coachella Valley. With three world-class, award winning destination resort hotels and two mid-priced, limited-service suite hotels, Rancho Mirage has been a major contributor to the growth of the hotel and lodging business in the Coachella Valley. Hotel room sales in Rancho Mirage continue to increase. The completion of the Ritz Carlton's $360 million construction and renovation project is expected to have a tremendous positive impact on hotel room sales for Rancho Mirage. Rancho Mirage offers superb golf courses, ample recreation amenities, top-notch convention facilities and a diverse make-up of shopping and restaurants that attract tourists. With a combination of world-class resorts and quality hotels, Rancho Mirage is uniquely positioned to benefit from projected growth in the tourism industry. To enhance our position, in January 2005, the Council formed a Hotel Marketing and Tourism Subcommittee. A Tourism and Marketing Division was created in Fiscal Year 2007-08 and in September 2007 a Marketing Manager was hired to formulate and implement a tourism marketing program. Long-Term Financial Planning Each year, a Ten Year Financial Plan is presented to the City Council for review. This document incorporates General Fund revenue and operating expenditure assumptions with capital spending goals and projects future undesignated fund balance. This Plan provides a long-term view of the General Fund's financial condition as a tool for City Council policy setting. The result is improved management efficiency and enhanced financial stability. Perhaps the best indication of the financial stability of the City is the amount of fund balance. Listed below, from left to right, is the General Fund's total ending fund balance over the last ten fiscal years, undesignated fund balance, and the sum of undesignated fund balance plus that portion of fund balance reserved for receivables/advances to other funds and capital projects. iv Undesignated Fund Balance + Fund Balance Reserved Year Ended Total Undesignated for Receivables/Advances June 30 Fund Balance Fund Balance and Capital Proiects 1998 $35,612,146 26,211,974 26,837,567 1999 40,198,026 27,001,308 27,626,901 2000 44,122,486 24,333,293 24,971,443 2001 50,947,626 28,073,720 32,848,948 2002 57,809,871 34,148,823 40,991,058 2003 64,953,095 37,905,182 46,170,401 2004 68,926,752 41,052,083 48,453,836 2005 71,091,623 43,694,795 51,096,548 2006 69,950,725 56,121,413 62,010,574 2007 73,868,852 65,012,840 65,301,778 Trend information for the General Fund's Undesignated Fund Balance is also presented graphically on page vi. Discussion of the reasons for this significant increase in Undesignated Fund Balance may be found on page 7. - AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Rancho Mirage for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2006. This is the seventeenth consecutive year that the City has received this award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. I would like to express my appreciation to the City Council for their ongoing oversight of the financial affairs of the City and their prudent fiscal policy and direction. I also thank City staff members with special thanks to the Finance Division of the Department of Administrative Services for their continued effort to provide timely and accurate financial data to City management and to Mayer Hoffman McCann P.C., the City's independent auditors, who assisted and contributed to the preparation of this report. Respectfully submitted, Patrick M. Pratt City Manager v 70,000,000 60,000,000 50,00(),000 40,000,000 0 ~N 30,000,000 20,000,000 10,000,000 V 0 N9 19- -19 "19 -196- Fiscal Year Ended June 30 vi Ilavu) gojLvUhv!)uu CITY OF RANCHO MIRAGE Directory of Officials June 30, 2007 CITY COUNCIL G. Dana Hobart Mayor Ron Meepos Mayor Pro Tern Richard W. Kite Councilmember Gordon Moller Councilmember Alan Seman Councilmember ADMINISTRATION Patrick M. Pratt City Manager/Executive Director of the Redevelopment Agency Steven B. Quintanilla City Attorney Elena Keeran City Clerk Scott Morgan Director of Administrative Services Catherine A. Mitton Director of Management Services Randal K. Bynder Director of Community Development Bruce B. Harry, Jr. Director of Public Works Curt Watts Economic Development Director Betty Teoman Library Director Johnnie Snow Accounting Manager viii Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rancho Mirage California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2006 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. a1CE OfF~, 9II~STARS COVOWN President SEAL s Executive Director ix An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc.com The Honorable Mayor and City Council City of Rancho Mirage, California INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Rancho Mirage, California, as of and for the year ended June 30, 2007, which collectively comprise the City's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the City of Rancho Mirage's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Rancho Mirage, California, as of June 30, 2007, and the respective changes in financial position, of the City of Rancho Mirage, California for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Governmental Auditing Standards, we have also issued our report dated December 20, 2007 on our consideration of the City of Rancho Mirage's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The information identified in the accompanying table of contents as management's discussion and analysis and required supplementary information are not a required part of the basic financial statements, but are supplementary information required by accounting principles, generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. The Honorable Mayor and City Council City of Rancho Mirage, California Page Two Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Rancho Mirage's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, schedules and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. 19~6rgsy Imo merR l~~G~?~r~A Irvine, California December 20, 2007 MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of the City of Rancho Mirage's financial performance provides an overview of the City's financial activities for the fiscal year (FY) ended June 30, 2007. Please read it in conjunction with the accompanying transmittal letter and the accompanying basic financial statements. FINANCIAL HIGHLIGHTS • The City's net assets from governmental activities increase 16.5% to $183.9 million as a result of this year's operating and capital activities. All of the City's financial activities are considered governmental activities. • During the year, the City's revenues ($64.7 million) exceeded expenses ($38.6 million) by approximately $26.1 million. The term City includes the General Fund, Redevelopment Agency, Housing Authority, Library and all other Funds identified in this report. • In the City's General Fund, revenues ($22.2 million) exceeded expenditures ($20.7 million) by approximately $1.5 million before transfers to and from other funds. After considering transfers to and from other funds, revenues, transfers in and proceeds from land sale ($25.7 million) exceeded expenditures and transfers out ($21.8 million) by approximately $3.9 million. It is important to note that the General Fund's financial statements include the financial activities of the License Tax Fund and the two COPS (Citizens Option for Public Safety) Funds. • At June 30, 2007, the General Fund's undesignated fund balance was approximately $65 million, an increase of approximately $8.9 million from June 30, 2006. The undesignated fund balance of approximately $65 million is strictly that of the General Fund and excludes the fund balances of the three Funds referenced directly above. • The City's capital assets increased to $158.3 million from $151.6 million. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Assets, which identifies the City's assets, liabilities and net assets, and the Statement of Activities, which identifies revenues and expenses, provide summary information about the activities of the City as a whole and allow a longer-term view of the City's finances. Fund Financial Statements of the City's major and non-major governmental funds tell how City services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds. Reporting the City as a Whole: The Statement of Net Assets and the Statement of Activities 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 this year's activities?" The Statement of Net Assets and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities 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. On the other hand the Fund Financial Statements are reported on the modified accrual basis of accounting as discussed on the next page. These two statements report the City's net assets and changes in them. The City's net assets, the difference between assets and liabilities, are one way to measure the City's financial health or financial position. Over time, increases or decreases in the City's net assets indicate whether its financial health is improving or deteriorating. The City's net assets increased this year by approximately $26.1 million from June 30, 2006 to June 30, 2007, due to the following: First, revenues exceeded expenditures by approximately $14.8 million. Second, there was a net increase in capital assets in the amount of approximately $10.5 million due to construction activities and land purchase on Bob Hope Drive. Third, long-term liabilities decreased by approximately $4.7 million. Fourth, accrued interest payable on outstanding bonds decreased by approximately $624,000. These increases were offset by the increase of accumulated depreciation in the amount of approximately $4.5 million. All of the City's services are considered to be governmental activities. The Statement of Net Assets and the Statement of Activities present information about these governmental activities, including general government, community development, public safety and public works. Transient occupancy tax, sales tax, interest income, construction permits, franchise fees, property tax and other revenues finance these activities. Reporting the City's Most Significant Funds: Fund Financial Statements The Fund Financial Statements provide detailed information about the most significant funds and not the City as a whole. Included are the General, Library, Fire Tax, Housing Authority,, Low Cost Housing, Whitewater Debt Service, Northside Debt Service, Whitewater Capital Projects and Northside Capital Projects Funds as well as lesser funds reported collectively as Non-major Governmental Funds. Some funds are required to be established by State law. However, management establishes 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 money. The City currently has just one type of fund-governmental-which uses the following accounting approach. Governmental funds focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. All of the City's services are reported in governmental funds. These funds are reported using an accounting method called the modified accrual accounting. Under this method of accounting, revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the current fiscal period while expenditures are generally recognized in the accounting period in which the liability is incurred with certain exceptions. For example, the issuance of long-term debt does not result in the recording of an expenditure in governmental funds. However, as principal and interest payments are made, the expenditure is recorded. 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 the reader determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds is described in a reconciliation following each of the fund financial statements. The City as Trustee: Reporting the City's Fiduciary Responsibilities The City is the trustee, or fiduciary, for certain amounts held on behalf of developers, property owners, and others. The City's fiduciary activities are reported in a separate Statement of Fiduciary Assets and Liabilities. We exclude these activities from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. THE CITY AS A WHOLE The City's net assets for the fiscal year ended June 30, 2007 were $183.9 million as shown in Table 1. Table 2 shows changes in net assets of $26.1 million due to the reasons listed on the previous page. 4 Table 1 Net Assets As of June 30, 2007 and 2006 Governmental Activities 2007 2006 Current and other assets $ 197,874,208 183,023,026 Capital assets 158.342.171 151,671,730 Total Assets 356,216,379 334,694,756 Long-term debt outstanding 164,266,702 169,021,775 Other liabilities 7.989.018 7.832,670 Total Liabilities 172,255.720 176,854,445 2007 2006 Net assets: Invested in capital assets, net of debt 64,597,727 57,911,677 Restricted 45,132,171 30,561,870 Unrestricted 74,230.761 69.366,764 Total Net Assets 183.960.659 157,840,311 The City's Net Assets are made up of three components: Investment in Capital Assets Net of Related Debt, Restricted Net Assets and Unrestricted Net Assets. Unrestricted net assets, the part of net assets that can be used to finance day-to-day operations, account for approximately 40% of the total net assets. Table 2 Changes in Net Assets Year-Ended June 30, 2007 and 2006 Governmental Activities 2007 2006 Revenues Program Revenues - Charges for services $ 6,484,304 4,922,113 Operating grants and contributions 2,508,829 4,802,592 Capital and grants contributions 776,847 703,715 Taxes- Tax Increment Net of Pass-Through Payments 20,186,002 18,471,347 Property taxes 3,352,551 2,846,809 Transient occupancy taxes 5,176,838 5,835,222 Sales tax 5,545,232 5,861,699 Franchise taxes 1,246,691 1,068,537 Motor Vehicle In-Lieu tax 96,326 107,131 Library and fire services tax 7,778,959 7,053,984 Other tax 265,511 222,057 Interest income, net of change in fair value 8,660,681 5,369,317 Other 2.621092 2,128.117 Total Revenues 64.700.853 59.392.642 5 Expenses Total Expenses ncre°a (decrease) i net assets Program Revenues 15% Interest Incomt Other 17% Library & Fire Services 12% 14, 046,413 16,020,796 9,993,457 10,567,863 3,606,363 19,164,023 3,609,893 5,495,894 7,324,379 9,471,741 38,580,505 60,720,317 26,120,348 (1,327,675) I SOURCES OF REVENUE I 2007 2006 Taxes 56% FUNCTIONAL ExPENSES General Govemment Interest on Long-Term Debt and Other Charges 19% Cultural & Recm 9% Public Safety 26% 11C roperty Tax ransient Occupancy ax ales Tax ther 6 interest rates, increases in overall fund balance for the City as a whole and the change to the City's investment policy in February 2007 to permit a maximum of 25% of the operating portfolio to be invested between 5 and 10 years compared to 15% previously. Total cost of all governmental activities was $38,580,505 as compared to $60,720,317 for last year. This $22.1 million decrease is primarily due to a decrease in capital improvement project expenditures in the current year. Several large projects were completed or substantially completed in the prior year such as the City's new library, Santa Rosa Villas - the Housing Authority's new senior housing project, the expansion of the City's corporate yard and utility undergrounding projects in several residential areas. Government Activities Table 3 presents the cost of each of the City's activities-general government, public safety, and public works-as well as each program's net cost (total cost less revenues generated by the activities). The net costs show the extent to which the City's general revenues support each of the City's programs. Table 3 Net Cost of Governmental Activities As of June 30, 2007 and 2006 2007 2006 Total Cost of Net Cost of Total Cost of Services Services Services General Government Public Safety Public Works Cultural and recreation Interest on long-term debt & other charges Totals FINANCIAL ANALYSIS OF THE CITY'S FUNDS Net Cost of Services 12,358,915 10,215,475 13,817,742 4,430,024 9,471,741 50.293.897 At year-end the City's Governmental Funds reported a combined fund balance of $191,751,875. This includes the General Fund's total fund balance of $73,868,852 of which $65,012,840 is undesignated, $6,100,752 is designated for continuing appropriations and $1,564,014 is reserved for encumbrances. The General Fund's undesignated fund balance increased $8,891,427 due primarily to the following: • Revenues and transfers in exceeded expenditures and transfers out by $3,918,126. • The expenditure of bond proceeds in the amount of approximately $5,580,200 for various City capital projects such as land acquisition, street and median island improvements, the re-roof of the City Hall parking lot and the undergrounding of utilities. In the prior fiscal year, these bond proceeds were reserved within the General Fund's fund balance. These subsequent capital expenditures then have the effect of increasing undesignated fund balance • Net decrease of approximately $606,800 in other reserves such as encumbrances and continuing appropriations which has the effect of increasing undesignated fund balance. As noted on page 3, the General Fund's financial statements include the financial activities of the License Tax Fund and the two COPS (Citizens Option for Public Safety) Funds. However, the General Fund's undesignated fund balance increase of $8,891,427 noted above is for the General Fund onlv. $ 14,046,413 9,993,457 3,606,363 3,609,893 7,324,379 S 38.580.505 9,465,212 9,505,823 546,868 1,968,243 7,324,379 28.810.525 16,020,796 10,567,863 19,164,023 5,495,894 9,471,741 60.720.317 Other major Funds: • The Library Fund's fund balance increased to $2,362,677 from $1,990,299 due to revenues and transfers in exceeding expenditures. Due to the increased size of the new Library, operating expenditures increased approximately $293,800. However, revenues and transfers from other funds still exceeded expenditures by approximately $372,400. • The Fire Tax Fund's fund balance increased to $414,103 from $369,996 due to an increase in its reserves and designations. Since the Fire Tax Fund's operating expenditures exceed operating revenues on an annual basis, the General Fund provides an operating subsidy to maintain a $0 undesignated fund balance. • The Housing Authority's total fund balance is $21,695,823 all of which is reserved for affordable housing projects. The approximate $3.6 million increase in fund balance is due primarily to the transfers from the Redevelopment Agency representing 20% of the Agency's tax increment, known as housing set-aside, for affordable housing. • The Redevelopment Agency's Low Cost Housing Fund's fund balance decreased from $32,085,816 to $31,397,961. This amount is available to reimburse the Housing Authority, from bond proceeds, for the development of additional affordable housing. Prior to FY 2003-04, this Fund was only used to account for the 20% of annual tax increment revenue that is required to be used for low-and moderate-income housing projects pursuant to State redevelopment law. After accounting for debt service on outstanding bonds and some minor operating costs, the annual balance of tax increment revenue is transferred to the Housing Authority, a separate legal entity, where it is used for the retention, development and other costs and expenditures related to the provision of affordable housing. In December 2003, the Redevelopment Agency issued $67,760,405 in bonds. Of this amount, $34,565,000 was tax allocation housing bonds which are accounted for in the Low Cost Housing Fund. • The Whitewater Project Area Debt Service Fund's fund balance increased slightly from $949,252 to $967,730 due to revenues exceeding expenditures and transfers out. • The Northside Project Area Debt Service Fund's fund balance also increased slightly to $2,346,862 from $2,290,296 due to revenues exceeding expenditures and transfers out. • The Whitewater Project Area Capital Projects Fund's fund balance increased to $9,190,173 from $7,135,894. The increase of $2,054,279 is due to the transfers in from the Whitewater Debt Service Fund. The transfers represent excess tax increment in the Debt Service Fund after deducting expenditures for bond debt service, pass-through payments and the 20% of tax increment revenue set aside for affordable housing purposes. • The Northside Project Area Capital Projects Fund's fund balance increased to $35,044,221 from $32,350,554. The $2,693,667 increase is primarily due to the transfers in from the Northside Debt Service Fund. The transfers represent excess tax increment in the Debt Service Fund after deducting expenditures for bond debt service, pass-through payments and the 20% of tax increment revenue set aside for affordable housing purposes. General Fund Budgetary Highlights Revenues: Various minor budget adjustments were approved by Council at mid-year. See the Budgetary Comparison Schedule on page 90 for details. Final year-end revenues exceeded budgeted amounts by $667,500 primarily due to the increase in unrealized gains on investments which is not budgeted. Expenditures: Various expenditure budget adjustments were approved by Council at mid-year and year-end. See the Budgetary Comparison Schedule beginning on page 91 for details. Actual expenditures of $20,704,595 were $3,915,983 less than the final budget primarily due to budgeted capital improvement projects not being completed by the end of the fiscal year (approximately $1.6 million) and reduced expenditures for General Government divisions (approximately $1.4 million). CAPITAL ASSET A T ADMINISTRATION Capital Assets Land & Rights of way $ 28,500,074 25,281,508 Buildings and improvements 38,844,326 27,751,711 Furniture & Fixtures 1,442,774 1,455,474 Equipment 928,740 614,573 Infrastructure 88,342,488 89,309,832 Work-in-Progress 283,768 7,258,631 Totals $158.342.170 151.671.729 2 $ 2001 Debt 20 000,0p0 40,000,000 60,000,( 80,000,000 100>000 000 ■ Work-in-Progress N Infrastructure Equipment Furniture & Fixtures Buildings and Improvements Land & Rights of Way 9 I CAPITAL Assrrs At year-end the City's governmental activities had $164,266,702 in bonds, capital leases, claims payable and compensated absences as compared to $169,021,775 at the prior year-end. The decrease of approximately $4,755,000 is due to debt service payments. More detailed information can be found in the notes to the financial statements (note 6). Table 5 Outstanding Debt at Year-End June 30, 2007 and 2006 Government Ac tivities 2007 2006 Revenue Bonds $ 5,625,000 5,775,000 Tax Allocation Bonds 157,119,221 161,464,680 Capital Leases 20,199 43,428 Claims Payable 288,025 463,935 Compensated Absences 1,214,257 1.274,732 Totals S 164.266.702 169.021.775 ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The General. Fund's FY 2006-07 actual operating revenues totaled approximately $24.7 million. FY 2007-08 budgeted operating revenues total approximately $26.9 million - an increase of approximately $2.2 million. This increase is primarily due to increases in sales tax ($944,000), transient occupancy tax ($470,000) and interest earnings ($320,000). The increase in sales tax is based on new businesses scheduled to open in the fiscal year and the effect of new tourism and marketing programs being introduced in the fiscal year. The increase in transient occupancy tax is also based on the impact of the new tourism and marketing programs and the anticipated reopening of the newly remodeled and greatly expanded Ritz Carlton Resort. The increase in interest earnings is based on an anticipated interest rate of 5% for the fiscal year and, at the time of the budget preparation, an estimated undesignated fund balance of approximately $62.5 million at June 30, 2008. The City's General Fund has budgeted expenditures in the amount of $23.5 million for FY 2007-08. This is a decrease of approximately $1.6 million compared to the FY 2006-07 budget due primarily to fewer capital improvement projects budgeted in FY 2007-08. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City's Finance Department at the City of Rancho Mirage, 69-825 Highway 111, Rancho Mirage, California 92270, (760) 770-3207. 10 CITY OF RANCHO MIRAGE STATEMENT OF NET ASSETS June 30, 2007 Governmental Activities Assets: Cash and investments (note 2) $ 121,263,960 Cash and investments with fiscal agent (note 2) 69,019,977 Receivables: Interest 205,311 Accounts 1,086,965 Special assessments 546,512 Loans 3,584,136 Trust 9,890 Due from other governments 2,001,457 Prepaid items 156,000 Capital assets (note 5): Non-depreciable capital assets 28,783,842 Depreciable capital assets 173,630,040 Accumulated depreciation (44,071,711) Total assets 356,216,379 Liabilities: Accounts payable 4,715,548 Accrued salaries and benefits 79,242 Accrued interest payable 1,866,684 Due to other governments 1,087,821 Deposits payable 118,333 Unearned revenue 121,390 Long-term liabilities (note 6): Due within one year 5,430,660 Due in more than one year 158,836,042 Total liabilities 172,255,720 Net assets: Investment in capital assets, net of accumulated depreciation and related debt 64,597,727 Restricted for: Community development 33,777,778 Public safety 514,477 Public works 5,511,462 Cultural and recreation 5,328,454 Unrestricted 74,230,761 Total net assets $ 183,960,659 See accompanying notes to basic financial statements. 11 CITY OF RANCHO MIRAGE STATEMENT OF ACTIVITIES Year ended June 30, 2007 Net (Expense) Revenue and Changes in Program Revenues Net Assets Operating Capital Total Charges for Grants and Grants and Program Governmental Expenses Services Contributions Contributions Revenues Activities Governmental activities: General government $ 14,046,413 3,638,843 165,511 Public safety 9,993,457 464,416 23,218 Public works 3,606,363 1,294,588 1,764,907 Cultural and recreation 3,609,893 1,086,457 555,193 Interest on long-term debt and other charges 7,324,379 - - Total governmental activities 38,580,505 6,484,304 2,508,829 General revenues: Taxes: Property taxes Transient occupancy taxes Sales taxes Franchise taxes Motor vehicle in lieu tax, unrestricted intergovernmental Library and fire services tax Other tax Interest income, net of increase (decrease) in fair value Other Total general revenues Change in net assets Net assets at beginning of year Net assets at end of year 776,847 4,581,201 (9,465,212) - 487,634 (9,505,823) - 3,059,495 (546,868) - 1,641,650 (1,968,243) - - (7,324,379) 776,847 9,769,980 (28,810,525) 23,538,553 5,176,838 5,545,232 1,246,691 96,326 7,778,959 265,511 8,660,681 2,622,082 54,930,873 26,120,348 157,840,311 $ 183,960,659 See accompanying notes tol ~ asic financial statements. 13 Assets Cash and investments (note 2) Cash and investments with fiscal agent (note 2) Receivables: Interest Accounts Special assessments Loans Trusts Due from other governments Due from other funds (note 3) Prepaid Items Total assets Liabilities and fund balances Liabilities: Accounts payable Accrued salaries and benefits Due to other governments Due to other funds (note 3) Deposits payable Deferred revenue Total liabilities Fund balances: Reserved for encumbrances Reserved for prepaid items Reserved for loans receivable Reserved for special assessment receivable Reserved for debt service Reserved for Cancer Survivor's Park Reserved for license tax Reserved for COPS program Reserved for Quimby fees Unreserved: Designated for unrealized gains and (losses) Designated for equipment replacement Designated for public facilities Designated for capital projects Designated for continuing appropriations Designated, reported in non-major: Special revenue funds Capital projects funds Undesignated, reported in: General fund Special revenue funds Debt service funds Capital projects funds Total fund balance (deficit) Total liabilities and fund CITY OF RANCHO MIRAGE BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2007 Special Revenue Funds Housing Low Cost General Library Fire Tax Authority Housing Fund Fund Fund Fund Fund $ 71,388,668 2,356,014 2,563,815 19,025,204 761,629 2,469,041 - - - 30,586,604 121,208 2,795 2,353 23,028 7,990 422,822 881 - 476 - 288,938 - 2,895,799 - 9,890 - 766,372 - - 92,947 80.555 222,195 41,738 155,520 - 480 - - $ 75,705,516 2,450,135 2,788,843 21,944,507 31,397,961 $ 1,778,084 48,545 2,374,740 163,226 - 38,580 25.754 - 7,333 - 3,269 78,125 20,000 9,890 - - 1,836,664 87,458 2,374,740 248,684 1,564,014 92,185 72,065 120,879 155,520 - 480 - 288,938 - 2,895,799 1,139,379 18,409 - (411,000) (8,613) (7,031) (70,917) 91,023 166,200 - 44,730 - - - 30,443,807 6,100,752 137,659 9,255,420 - 65,012,840 - - - - - 2,279,105 9,494,642 863,131 73,868,852 2,362,677 414,103 21,695,823 31,397,961 balances $ 75,705,516 2,450,135 2,788,843 See accompanying notes to basic financial statements 21,944,507 31,397,961 14 Debt Service Funds Capital Projects Funds Whitewater Northside Whitewater Northside Non-major Total Debt Service Debt Service Capital Projects Capital Projects Governmental Governmental Fund Fund Fund Fund Funds Funds 953,193 2,588,780 3,725,298 4,252,579 13,648,780 121,263,960 2 461,616 4,565,910 30,520,521 416,283 69,019,977 6,523 7,535 2,587 5,380 25,913 205,312 - - 461,980 - 200,806 1,086,965 546,512 - - 546,512 9,699 389,700 3,584,136 - - - - - 9.890 208,689 227,870 798,526 2,001,457 - - - 437,435 - - - - - 156,000 1,168,407 3,285,801 9,311,986 35,168,180 15,090,308 198,311,644 2,500 1,000 119,540 30,187 197,726 4,715,548 - - 2,273 2,272 3,030 79,242 149,882 937,939 - - - 1,087,821 48,295 - 389,140 437,435 - - 36,939 118,333 - - - 91,500 - 121,390 200,677 938,939 121,813 123,959 626,835 6,559,769 - - 273,701 70,263 172,284 2,365,391 - - - 156,000 9,699 389,700 3,584,136 - - 546,512 - - 546,512 987,814 2,370.071 - 416,283 3,774,168 - - - 50,000 50,000 - - 1,139,379 - 18,409 - - 1,449,758 1,449,758 (20,084) (23,209) 17,941 281,710 (50,341) (200,521) - - - 166,200 - - 44,730 672,462 19,615,212 50,731,481 3,676,095 6,848,045 - 26,017,971 - - 5,746,624 5,746,624 2,747,758 2.747,758 - 65,012,840 3,931,107 16,567,985 - - 3,993,763 7,839,291 - 11,833,054 967,730 2,346,862 9,190,173 35,044,221 14,463,473 191,751,875 1,168,407 3,285,801 9,311,986 35,168,180 15,090,308 198,311,644 15 CITY OF RANCHO MIRAGE Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2007 Fund balances of governmental funds $ 191,751,875 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets net of related accumulated depreciation have not been included as financial resources in governmental fund activity. Capital assets 202,413,881 Accumulated depreciation (44,071,711) Long-term debt and compensated absences have not been included in the governmental fund activity: Revenue bonds payable (5,625,000) Tax allocation bonds payable (157,11.9,221) Capital leases payable (20,199) Claims payable (288,025) Compensated absences (1,214,257) Accrued interest payable for the current portion of interest due on debt service has not been reported in the governmental funds. ('1,866,684) Certain revenues will be collected after year end, but are not available soon enough to pay for current period's expenditures, and are therefore reported as deferred revenue in governmental funds. - Net assets of governmental activities $ 183,960,659 See accompanying notes to basic financial statements. 16 11 CITY OF RANCHO MIRAGE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year ended June 30, 2007 Special Revenue Funds Housing Low Cost General Library Fire Tax Authority Housing Fund Fund Fund Fund Fund Revenues: Taxes $ 15,621,653 - - - - Intergovernmental 361,837 327,558 146,000 - Licenses and permits 947,946 - - - - Charges for services 1,166,199 - 32,027 - - Fines and forfeitures 40,139 34,102 - - - Special assessments - - - - - Developer fees - - - - - Interest income 3,092,985 63,318 45,204 549,455 1,283,039 Net increase (decrease) in investment fair value 518,993 14,951 6,628 46,235 562,704 Miscellaneous 415,320 149,366 12,215 658,848 - Total revenues 22,165,072 589,295 242,074 1,254,538 1,845,743 Expenditures: Current: General government 7,813,052 - - 3,604,127 87,834 Public safety 5,295,796 - 4,561,779 - - Public works 3,447,496 - - - - Cultural and recreation 48,619 2,707,430 - - - Capital projects 4,099,632 - - 580,354 - Debt service: Principal - - - 1,045,000 Interest - - - - 1,466,794 Payments under pass-through agreements - - - - - Payments for ERAF Shift - - - - - Service fees and issuance costs - - - - - Total expenditures 20,704,595 2,707,430 4,561,779 4,184,481 2,599,628 Excess (deficiency) of revenues over (under) expenditures 1,460,477 (2,118,135) (4,319,705) (2,929,943) (753,885) Other financing sources (uses): Transfers in (note 5) 1,798,085 2,490,513 4,363,812 6,550,699 6,616,729 Transfers out (note 5) (1,082,836) - - (34,362) (6,550,699) Proceeds from land sale 1,742,400 - - 4,000 - Total other financing sources (uses) 2,457,649 2,490,513 4,363,812 6,520,337 66,030 Total change in fund balances 3,918,126 372,378 44,107 3,590,394 (687,855) Fund balances, beginning of year 69,950,726 1,990,299 369,996 18,105,429 32,085,816 Fund balances, end of year $ 73,868,852 2,362,677 414,103 21,695,823 31,397,961 See accompanying notes to basic financial statements. 18 Debt Service Funds Capital Projects Funds Whitewater Northside Whitewater Northside Debt Service Debt Service Capital Projects Capital Projects Fund Fund Fund Fund 17,583,646 15,500,000 - - - - 800,000 - - - - 110,572 115,331 156,497 304,696 1,526,322 13,173 28,522 88,517 605,899 - - 6,600 - 17,712,150 15,685,019 1,199,813 2,242,793 1,242,186 457,427 - - 809,132 80,662 1,765,000 1,925,562 7,905,568 156,466 11,752,596 5,959,554 Non-major Governmental Funds 3,796,642 2,467,307 437,396 60,031 4,700,393 1,070,096 601,128 101,170 13,234,163 328,058 674,380 468,487 1,879,729 150,000 238,033 1,750 3,740,437 9,493,726 Total Governmental Funds 52,501,941 4,102,702 947,946 1,746,194 134,272 4,700,393 1,070,096 7,737,975 1,986,792 1,242,349 76,170,660 13,532,684 9,857,575 4,121,876 3,224,536 7,449,509 4,655,000 7,400,495 12,897,644 388,087 63,527,406 12,643,254 - - 2,424,347 1,841,400 1,241,532 27,327,117 (5,941,076) (4,941,400) - (852,437) (7,924,307) (27,327,117) - - 481,437 - - 2,227,837 (5,941,076) (4,941,400) 2,905,784 988,963 (6,682,775) 2,227,837 18,478 56,566 2,054,279 2,693,667 2,810,951 14,871,091 949,252 2,290,296 7,135,894 32,350,554 11,652,522 176,880,784 967,730 2,346,862 9,190,173 35,044,221 14,463,473 191,751,875 19 1,695,000 3,770,106 4,992,076 229,871 10,687,053 4,997,966 2,051,318 (851,505) 538,089 1,704,704 CITY OF RANCHO MIRAGE Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended June 30, 2007 Net change in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities differs from the amounts reported in the statement of activities because: Governmental funds report capital. projects (outlays) as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period (net of capital asset and related accumulated deletions). Repayment of debt service principal (net of accretion ) is an expenditure in the governmental funds, however, the repayment reduces long-term liabilities in the statement of net assets. Compensated absences, capital leases and claims payable expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. The following represent the net change for the current period: Compensated absences Capital leases Claims payable accrued interest and service fees for the current period. Certain revenues will be collected after year end, but are not available soon enough to pay for current period's expenditures, and are therefore reported as deferred revenue in governmental funds. This is the net change. Change in net assets of governmental activities $ 14,871,091 6,670,440 4,495,460 60,475 23,229 175,910 623,743 (800,000) $ 26,120,348 See accompanying notes to basic financial statements. 20 CITY OF RANCHO MIRAGE Statement of Fiduciary Assets and Liabilities Agency Funds June 30, 2007 Assets Cash and investments (note 2) $ 3;942,941 Cash and investments with fiscal agent (note 2) 1,523,411 Interest receivable 939 Accounts receivable - Due from other governments 261,625 Total assets $ 5,728,916 Liabilities Accounts payable $ 1,011,342 Deposits payable 2,247,440 Due to bondholders 2,470,134 Total liabilities $ 5,728,916 See accompanying notes to basic financial statements. 21 22 CITY OF RANCHO MIRAGE Notes to Basic Financial Statements (in order of presentation) June 30, 2007 Note Description Pate Number 1 Reporting Entity and Summary of Significant Accounting Policies 24 2 Cash and Investments 42 3 Due From and Due to Other Funds 48 4 Interfund Transfers 49 5 Capital Assets 51 6 Long-term Liabilities 53 7 Debt Without Governmental Commitment 84 8 Participation in Risk Pool 84 9 Required Disclosures 86 10 Defined Benefit Pension Plan 86 11 Deferred Compensation Plan 87 12 Contingencies 88 13 Post-Employment Benefits 88 23 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS Year ended June 30, 2007 (1) Reoortine Entitv and Summarv of Significant Accounting Policies (a) Summarv of Significant Accounting Policies The basic financial statements of the City of Rancho Mirage have been prepared in conformity with generally accepted accounting principles as applicable to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The Financial ReDortine Entitv The City of Rancho Mirage was incorporated August 3, 1973 as a general law city under the government code of the State of California. Effective December 25, 1997, the City of Rancho Mirage became a Charter City which was approved by the citizens of the City of Rancho Mirage. The City operates under a council- manager form of government and the City Council is composed of five members. Among the services provided by the City are the following: public works, parks and recreation, library, planning, building and safety, code compliance, and contracted fire and law enforcement services. As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is either able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent upon the City (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. Blended component units, although legally separate entities are, in substance, part of the government's operations and so data from these units are reported with the interfund data of the primary government. The following organizations are considered to be component units of the City: 24 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Reportine Entitv and Summgrv of Sienificant Accounting Policies. (Continued) (a) Summarv of Significant Accounting Policies. (Continued) The Financial Reporting Entitv. (Continued) Rancho Mirage Redevelopment ALyencv The Rancho Mirage Redevelopment Agency was established on October 7, 1976 pursuant to the State of California Health and Safety Code Section 33000 entitled "Community Redevelopment Law". Its purpose is to prepare and carry out plans for improvement, rehabilitation and redevelopment of blighted areas within the territorial limits of the City of Rancho Mirage. Even though it is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Agency. Separate financial statements of the Agency are available at City Hall, 69-825 Highway 111, Rancho Mirage, California 92770. Rancho Mirage Joint Powers Financing Authoritv The Rancho Mirage Joint Powers Financing Authority was established pursuant to a Joint Exercise of Powers Agreement dated December 1, 1989, between the City and the Rancho Mirage Redevelopment Agency (the "Members"). The Authority was created for the purpose of providing financing for public capital improvements for the Members. Even though it is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Authority. Separate financial statements of the Financing Authority are not issued. Rancho Mirage Housine Authoritv The Housing Authority was created to promote and encourage the retention, rehabilitation and development of "affordable" housing units. "Affordable" housing units are those units occupied by households not exceeding the "affordable" income limits as established by the Department of Housing and Urban Development ("HUD"). Income limits are revised on a yearly basis. Even though the Housing Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board. Separate financial statements of the Housing Authority are not issued. 25 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Reoortine Entitv and Summarv of Significant Accounting Policies. (Continued) (a) Summarv of Significant Accounting Policies. (Continued) The Financial Renortina Entity. (Continued) Communitv Services District The CSD was officially established on July 15, 1999. The CSD was created to collect property taxes for the Library and Fire Tax Funds. Contributions made by the Redevelopment Agency to the Library Fund are first received by the CSD. A transfer of these revenues is then made by the CSD to the Library and Fire Tax Funds for their respective operations. Even though the CSD is a legally separate entity, it is reported as if it were part of the City because the City Council also serves as the governing board. Separate financial statements are not prepared for the CSD. (b) Basis of Accountine and Measurement Focus The basic financial statements of the City are composed of the following: • Government-wide financial statements • Fund financial statements • Notes to basic financial statements Financial reporting is based upon all GASB pronouncements. Government-wide Financial Statements Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental activities of the primary government (including its blended component units). Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City. 26 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Reporting Entitv and Summarv of Significant Accounting Policies. (Continued) Government-wide Financial Statements. (Continued) Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from non-exchange transaction are recognized in accordance with the government-wide requirements of GASB pronouncements. Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Amounts paid to acquire capital assets are capitalized as assets in the government- wide financial statements rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements rather than as an other financing source. Amounts paid to reduce long- term indebtedness of the reporting government are reported as a reduction of the related liability rather than as an expenditure. Fund Financial Statements The underlying 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. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and non- major funds in the aggregate for governmental funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations. 27 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Revortin2 Entitv and Summarv of Significant Accountin,2 Policies. (Continued) Governmental Funds In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days. Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available where cash is received by the government. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources" since they do not represent net current assets. 28 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Renortin2 Entitv and Summarv of Significant Accounting Policies. (Continued) Recognition of governmental fund type revenue represented by non-current receivables are deferred until they become current receivables. Non-current portions of other long-term receivables are offset by fund balance reserve accounts. Due to their nature of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. Fiduciarv Funds The City's Agency funds are used to account for refundable customer deposits and assessment collections and debt service payments of assessment districts whose debt is not an obligation of the City. Agency funds are custodial in nature (assets equal liabilities) and do not involve the recording of City revenues and expenses. (c) Fund Classifications The City reports the following major governmental funds and fiduciary funds: General Fund. The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. From this fund are paid the general operating expenditures and capital improvement costs which are not paid through other funds. Library Special Revenue Fund. The Library Fund is used to account for revenues and expenditures associated with the provision of public library services. 29 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Reporting Entitv and Summarv of Significant AccountinLy Policies. (Continued) Fire Tax Special Revenue Fund. The Fire Tax Fund is used to account for the revenues and expenditures associated with the provisions of fire protection services. Housing Authority Special Revenue Fund. The Housing Authority Fund is used to account for monies set aside for assistance to low and moderate income households. Low Cost Housing Special Revenue Fund. The Low Cost Housing Fund is used to account for monies set aside for assistance to low and moderate income households before the monies are transferred to the Housing Authority Fund. Whitewater Project Area Debt Service Fund. The Whitewater Project Area Fund is used to account for tax increment revenues and debt service transactions of bonds and other obligations of the Whitewater redevelopment project area. Northside Project Area Debt Service Fund. The Northside Project Area Fund is used to account for the tax increment revenues and debt service transactions of bonds and other obligations of the Northside redevelopment project area. Whitewater Project Area Capital Projects Fund. The Whitewater Project Area Fund is used to account for proceeds of tax allocation bonds and other obligations issued to fund construction of specific improvements in the Whitewater redevelopment project area. Northside Project Area Capital Projects Fund. The Northside Project Area Fund is used to account for proceeds proceeds of tax allocation bonds and other obligations issued to fund construction _of specific improvements in the Northside redevelopment project area. Agency Funds. The Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments, and/or other funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operation. (d) Exolanation of Differences between Governmental Funds Balance Sheet and the Statement of Net Assets The "total fund balances" of the City's governmental funds differs from "net assets" of governmental activities reported in the statement of net assets. This difference primarily results from the long-term economic focus of the statement of net assets versus the current financial resources focus of the governmental fund balance sheets. 30 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Renortine Entitv and Summarv of Significant Accounting Policies, (Continued) Capital Related Items When capital assets (property, plant, equipment) that are to be used in governmental activities are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the statement of net assets includes those capital assets among the assets of the City as a whole. Cost of capital assets $202,413,881 Accumulated depreciation (44,071,711) Lone-term Debt Transactions Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the statement of net assets. Tax allocation bonds payable $157,119,221 Revenue bonds payable 5,625,000 Capital leases payable 20,199 Compensated absences payable 1,214,257 Claims payable 288,025 $164.266.702 Accrued Interest Accrued liabilities in the statement of net assets differs from the amount reported in governmental funds due to accrued interest on Tax Allocation Bonds payable. Accrued interest payable %1.866.684 Certain Deferred Revenue Certain revenues will be collected after year end, but are not available soon enough to pay for current period's expenditures, and are therefore reported as deferred revenue in governmental funds. Deferred revenue $_0_ Reclassifications and Eliminations Interfund balances must generally be eliminated in the government-wide statements, except for net residual amounts due between governmental activities. Amounts involving fiduciary funds should be reported as external transactions. Any allocations must reduce the expenses of the function from which the expenses are being allocated so that expenses are reported only once - in the function in which they are allocated. 31 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Renortine Entitv and Summarv of Sip-nificant Accounting Policies, (Continued) (d) Explanation of Differences between Governmental Funds Balance Sheet and the Statement of Net Assets, (Continued) Total Governmental Capital Accumulated Funds Assets Deureciation Assets: Cash and investments $ 121,263,960 - - Cash and investments with fiscal agent 69,019,977 - - Receivables: Interest 205,312 - - Accounts 1,086,965 - - Special assessments 546,512 - - Loans 3,584,136 - - Trusts 9,890 - - Due from other governments 2,001,457 - - Due from other funds 437,435 - - Prepaid items 156,000 - - Advances to other funds - - - Capital assets 202,413,881 - Accumulated depreciation - - (44,071,711) Total assets and other debits $ 198,311,644 202,413,881 (44,071,711) Liabilities and fund balances Liabilities: Accounts payable $ 4,715,548 - - Accrued salaries and benefits 79,242 - - Accrued interest payable - - - Due to other governments 1,087,821 - - Due to other funds 437,435 - - Deposits payable 118,333 - - Deferred revenue 121,390 - - Advances from other funds - - - Long-term liabilities - - - Total liabilities 6,559,769 - - Fund balances/net assets 191,751,875 202,413,881 (44,071,711) Total liabilities and fund balances/net assets $ 198,311,644 202,413,881 (44,071,711) 32 Long-term Certain Reclassifications Statement Debt Interest Compensated Deferred and of Transactions Pavable Absences Revenue Eliminations Net Assets 121,263,960 - 69,019,977 - 205,312 - 1,086,965 - 546,512 - 3,584,136 - 9,890 - 2,001,457 (437,435) - 156,000 - - - - - 202,413,881 - (44,071,711) - - - - (437,435) 356,216,379 4,715,548 79,242 - 1,866,684 - - - 1,866,684 - - - - 1,087,821 (437,435) - - - - - 118,333 - - - - 121,390 163,052,445 - 1,214,257 - - 164,266,702 163,052,445 1,866,684 1,214,257 - (437,435) 172,255,720 (163,052,445) (1,866,684) (1,214,257) - - 183,960,659 (437,435) 356,216,379 33 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Renortin2 Entitv and Summarv of Significant Accounting Policies, (Continued) (e) Explanation of Differences between Governmental Fund Operating Statements and the Statement of Activities The "net change in fund balances" for governmental funds differs from the "change in net assets" for governmental activities reported in the statement of activities. The differences arise primarily from the long-term economic focus of the statement of activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below. Capital Related Items When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense,. As a result, fund balance decreases by the amount of financial resources expended, whereas net assets decreased by the amount of depreciation expense charged for the year. Capital outlay $18,813,492 Disposition of capital assets, net of related accumulated depreciation (7,568,809) Depreciation expense (4,574,242) Lone-term Debt Transactions 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 changes in compensated absences $ 60,475 Net change in capital leases payable 23,229 Net change in claims payable 175,910 Repayment of bond principal is reported as an expenditure in governmental funds and, thus, has the effect of reducing fund balance because current financial resources have been used. For the City as a whole, however, the principal payments reduce the liabilities in the statement of net assets and do not result in an expense in the statement of activities. TAB principal payments $4,505,000 Revenue bond principal payments 150.000 54.655.000 34 CITE' OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Renortin2 Entitv and Summarv of Significant Accounting Policies, (Continued) Proceeds from long-term debt is another financing source in the governmental funds, but the new debt issuance increases long-term liabilities in the statement of net asset and is not recorded in the statement of activities. Issuance of long-term debt Payment to refunded bond escrow agent is an other financing use in the governmental funds, but the payment decreases long-term liabilities in the statement of net assets and is not recorded as an expense in the statement of activities. Payment to refunded bond escrow agent $_0_ Accrued Interest Beginning fund balance in the statement of activities has been restated to reflect the retroactive recording of accrued interest on bonds payable. Net change in accrued interest $(623.743) Certain Deferred Revenue Certain revenues will be collected after year end, but are not available soon enough to pay for current period's expenditures, and are therefore reported as deferred revenue in governmental funds. Net change in deferred revenue ' $(800.000) Reclassification and Eliminations Interfund balances must generally be eliminated in the government-wide financial statements, except for net residual amounts due between governmental activities. Amounts involving fiduciary funds should be reported as external transactions. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once - in the function in which they are allocated. - 35 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) ReDortine Entitv and Summarv of Siunificant Accoun.tina Policies, (Continued) (e) EXDlanation of Differences between Governmental Funds ODeratine Statements and the Statement of Activities, (Continued) Total Governmental Capital Accumulated Funds Assets Depreciation Revenues: Taxes $ 52,501,941 - - Intergovernmental 4,102,702 - - Licenses and permits 947,946 - - Charges for services 1,746,194 - - Fines and forfeitures 134,272 - - Special assessments 4,700,393 - - Developer fees 1,070,096 - - Interest income 7,737,975 - - Net increase (decrease) in investment fair value 1,986,792 - - Miscellaneous 1,242,349 - - Total revenues 76,170,660 - - Expenditures: Current: General government 13,532,684 - 762,351 Public safety 9,857,575 - 137,227 Public works 4,121,876 (3,685,561) 3,107,627 Cultural and recreation 3,224,536 - 457,425 Capital projects 7,449,509 (7,449,509) - Debt service: Principal 4,655,000 - - Interest 7,400,495 - - Payments under pass-through agreements 12,897,644 - - Payments to ERAF shift - - - Service fees 388,087 - - Total expenditures 63,527,406 (11,135,070) 4,464,630 Excess (deficiency) of revenues over expenditures 12,643,254 11,135,070 (4,464,630) Other financing sources (uses): Transfers in 27,327,117 - - Transfers out (27,327,117) - - Proceeds from land sale 2,227,837 - - Total other financing sources (uses) 2,227,837 - - Total change in fund balances/net assets 14,871,091 11,135,070 (4,464,630) Fund balances/net assets, beginning of year 176,880,784 191,278,811 (39,607,081) Fund balances/net assets, end of year $ 191,751,875 202,413,881 (44,071,711) 36 Long-term Debt Transactions (199,139) (4,655,000) 159,540 (4,694,599) 4,694,599 Interest Dense (623,743) (623,743) 623,743 4,694,599 623,743 (167,747,044) (2,490,427) (163,052,445) (1,866,684) Certain Compensated Deferred Absences Revenue - (800,000) (800,000) (49,483) - (1,345) - 62,421 - (72,068) - (60,475) - 60,475 (800,000) 60,475 (800,000) (1,274,732) 800,000 (1,214,257) - Reclassifications and Eliminations (12,897,644) 2,227,837 (10,669,807) (12,897,644) (12,897,644) 2,227,837 (27,327,117) 27,327,117 (2,227,837) (2,227,837) Statement of Net Assets 39,604,297 3,302,702 947,946 1,746,194 134,272 4,700,393 1,070,096 7,737,975 1,986,792 3,470,186 64,700,853 14,046,413 9,993,457 3,606,363 3,609,893 6,936,292 388,087 38,580,505 26,120,348 26,120,348 157,840,311 183,960,659 37 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Reporting Entitv and Summarv of Si,2nificant Accounting Policies, (Continued) (f) Cash and Investments Investments are reported in the accompanying balance sheet at fair value, except for nonparticipating certificates of deposit and investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates. Interest income reports interest earnings. Net increase (decrease) in investment fair value reports changes in fair value and any gains or losses realized upon the liquidation, maturity or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Interest income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance. (g) Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of the contribution. Generally, capital asset purchases in excess of $500 are capitalized if they have an expected useful life of three years or more. Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. The City chose to record and value infrastructure assets in their entirety (e.g., prior to ].980). 38 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Ret)ortine Entitv and Summarv of Sienificant Accounting Policies. (Continued) (g) Capital Assets. (Continued) Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government - wide financial statements. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The range of lives used for depreciation purposes for each capital asset class are as follows: Building and improvements Furniture and fixtures Equipment Infrastructure: Pavement Curbs and gutters Sidewalks Bridges Medians Traffic signals Storm drain system (h) Propertv Taxes 30-50 years 3-15 years 3-15 years 25 years 50 years 50 years 50 years 50 years 15 years 75 years Property taxes are assessed and collected each fiscal year according to the following property tax calendar: Lien Date March 1 Levy Date July 1 Due Date November 1 (first installment) March 1 (second installment) Delinquent Date December 10 (first installment) April 10 (second installment) Under California law, property taxes are assessed and collected by the counties up to 1 percent 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 the state statutes. A delinquency penalty of 10 percent is assessed by the County of Riverside. If taxes become delinquent, subject properties may be deeded to the State and may be sold by the County for taxes plus a 1.5 percent per month redemption fee. The City accrues as a receivable all property taxes normally received from the County within sixty days of the end of the fiscal year. 39 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Reportine Entitv and Summarv of Significant Accountine Policies. (Continued) (i) Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in governmental funds. Encumbrances outstanding at year- end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. 0) Self-Insurance The City is self-insured for the first $250,000 of each workers' compensation claim. Losses in excess of these amounts up to $200 million are covered by outside insurance. The City is completely self-insured for unemployment claims. (k) Accounting for Self-Insurance Activities The City records a liability for litigation, judgments, and claims (including claims incurred but not reported) when it is probable that an asset has been impaired or a liability has been incurred prior to year end and the probable amount of loss (net of any insurance recovery) can be reasonably estimated. Liabilities resulting from self-insurance activities are recorded as claims payable in the government-wide financial statements since these liabilities are funded on a pay-as-you-go basis and are not payable from currently available financial resources. (1) Advances to Other Funds Long-term interfund advances are recorded as a receivable and as reserved fund balance by the advancing governmental fund in the fund financial statements. (m) Pronertv Held for Resale Property held for resale represents land, structures and their related improvements that were acquired for resale in accordance with the objectives of the Whitewater Project Area and Northside Project Area Redevelopment Plans. Property held for resale is valued at historical cost. (n) Transient Occupancv Tax Approximately 25% of General Fund revenue is derived from transient occupancy tax collected primarily from three major hotel resorts within the City. 40 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Reporting Entity and Summarv of Significant Accounting Policies, (Continued) (o) Compensated Absences hi accordance with GASB Statement No. 16, a liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances is attributable to services already rendered and it is probably that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement. Under GASB Statement No. 16, a liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee. In governmental funds, compensated absences (unpaid vacation and sick leave) are recorded as expenditures in the year they are paid. The balance of unpaid vacation and vested sick leave at year end is recorded in the government-wide financial statements as these amounts will be liquidated from future resources. Depending upon the length of employment, permanent City employees earn 12 to 18 vacation days per year. Employees' vacation may not exceed 30 working days during any calendar year without the approval of the City Manager. Permanent City employees are provided with 12 sick days a year. A maximum of 120 days of sick leave may be accumulated. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave and floating holidays. Upon termination, employees receive 50% of their accrued sick leave at their current pay rate. (p) Interfund Transfers Transfers are reported as other financing sources and uses in the statement of revenues, expenditures and changes in fund balances in the fund financial statements. (q) Prepaid Items Prepaid items are reported using the consumption method. 41. CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Reporting Entitv and Summarv of Significant Accounting Policies, (Continued) (r) Use of Estimates The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures during the reporting period. Actual results could differ from thoses estimates. (2) Cash and Investments Cash and investments as of June 30, 2007 are classified in the accompanying financial statements as follows: Statement of net assets: Cash and investments $121,263,960 Cash and investments held by fiscal agent 69,019,977 Fiduciary funds: Cash and investments 3,942,941 Cash and investments held by fiscal agent 1.523.411 Total cash and investments $195.750.289 Cash and investments as of June 30, 2007 consist of the following: Cash on hand $ 2,150 Deposits with financial institutions (4,436,627) Investments 200,184.766 Total cash and investments $195.750.289 42 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments (Continued) Investments Authorized by the California Government Code and the Citv's Investment Policv The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by fiscal agent that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Authorized *Maximum *Maximum Investment Types By Investment *Maximum Percentage Investment Authorized by State Law Policv Maturitv Of Portfolio In One Issuer Local Agency Bonds No 5 years None None U.S. Treasury Obligations Yes 5 years, None None U.S. Agency Securities Yes 5 years None None Banker's Acceptances No 180 days 40% 30% Commercial Paper No 270 days 25% 10% Negotiable Certificates of Deposit Yes 5 years 30% $1,000,000 Repurchase Agreements Yes I year None None Reverse Repurchase Agreements No 92 days 20% of base value None Medium-Term Notes No 5 years 30% None Mutual Funds No N/A 20% 10% Money Market Mutual Funds No N/A 20% 10% Mortgage Pass-Through Securities No 5 years 20% None County Pooled Investment Funds No N/A None None Local Agency Investment Fund (LAIF) Yes N/A None None JPA Pools (other investment pools) No N/A None None * Based on state law requirements or investment policy requirements, whichever is more restrictive. 43 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments, (Continued) Investments Authorized by Debt Agreements Investment of debt proceeds held by fiscal agent are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by fiscal agent. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk. Maximum Maximum Authorized Maximum Percentage Investment Investment Tvne Maturitv Allowed in One Issuer U.S. Treasury Obligations None None None U.S. Agency Securities None None None Banker's Acceptances 180 days None None Commercial Paper 270 days None None Money Market Mutual Funds N/A None None Investment Contracts 30 years None None Repurchase Agreements 30 Days None None State or Municipal Obligations None None None Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 44 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments. (Continued) Disclosures Relating to Interest Rate Risk, (Continued) Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Remaining Maturity (in Months) 12 Months 13 to 24 25 to 36 37 to 48 49 to 60 More than Investment Tyne Total Or Less Months Months Months Months 60 Months Investments held by City: U.S. Treasury Notes $15,563,287 12,646,302 2,916,985 - - - - U.S. Treasury Strips 13,933,451 1,558,990 3,636,682 1,055,469 - 1,051,413 6,630,897 Federal Agency Securities 79,488,577 15,785,697 15,388,105 9,527,580 9,523,770 7,577,559 21,685,867 State Investment Pool (LAIF) 20,872,723 20,872,723 - - - - - Investments held by fiscal Agent: U.S. Treasury Notes 15,712,064 8,825,454 5,300,513 841,983 744,113 U.S. Treasury Strips 6,055,038 6,055,038 - - - - - Federal Agency Securities , 44,341,498 9,402,398 34,939,100 - - - Money Market Funds 4.218.129 4.218.129 - - - - - Total $200-194-766 79-364-731 62.181385 11.425.031 10.267.883 8.628.972 28316 The City's investments (including investments held by fiscal agents) include the following investments whose fair values are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above): Fair Value at Year End Callable Federal agency securities with interest rates that range from 3.0 percent to 7.0 percent. $12,500,000 45 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments. (Continued) Disclosures Relating to 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 by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year end for each investment type. Minimum Exempt Legal From Not Investment TVDe Total Ratine Disclosure Aaa Rated U.S. Treasury notes $ 15,563,286 N/A 15,563,287 - - U.S. Treasury strips 13,933,451 N/A 13,933,451 - - Federal agency securities 79,488,576 N/A - 79,488,576 - State investment pool 20,872,723 N/A - - 20,872,723 Held by bond trustee: U.S. Treasury notes 15,712,064 N/A 15,712,064 - - U.S. Treasury strips 6,055,038 N/A 6,055,038 - - Federal agency securities 44,341,498 N/A - 44,341,498 - Money market funds 4,218.129 A - 4,218,129 - Total %200.184.766 51.263.840 128.048203 20.872.723 Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represented 5% or more of total City investments are as follows: Investment Issuer Type FNMA Federal agency securities FHLB Federal agency securities FFCB Federal agency securities FHLMC Federal agency securities Reported Amount $32,187,407 42,616,132 24,702,916 24,323,619 46 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments. (Continued) Concentration of Credit Risk. (Continued) Investments in any one issuer that represent 5% or more of total investments by reporting unit (primary government, discretely presented component unit, governmental activities, major fund, nonmajor funds in the aggregate, etc.) are as follows. Generally this is applicable for investments held by fiscal agent. $14,927,116 and $16,628,693 of the cash and investments held by fiscal agent reported in the Redevelopment Agency (a component unit of the City) are held in the forms of FNMA and FHLB, respectively. Custodial Credit Risk 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 its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2007, none of the City's deposits with financial institutions that were in excess of federal depository insurance limits were held in uncollateralized accounts. For investments identified herein as held by fiscal agent, the City selects the investment under the terms of the applicable trust agreement and the fiscal agent holds the investment on behalf of the City. Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code 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. LAIF is not rated. 47 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (3) Due From and Due to'Other Funds Current interfund receivables and payables balances at June 30, 2007 are as follows: Due From: Nonmaj or Whitewater Governmental Due To: Debt Service Funds Total General Fund $ - 92,947 92,947 Fire Tax Fund - 222,195 222,195 Library Fund 6,557 73,998 80,555 Low Cost Housing Fund 41.738 - 41,738 Total $48.295 389.140 437.435 The Library Fund receivable of $80,555 is accrued revenue from the Community Services District Fund, the Community Facilities District Fund and the Whitewater Debt Service Funds. The Fire Tax Fund receivable, $222,195, is accrued revenue from the Community Services District Fund. The Low Cost Housing Fund receivable, $41,738 is accrued 20% pass-thru from the Whitewater Debt Service Fund. The General Fund receivable of $92,947 is accrued revenue from the Community Facilities District Fund. 48 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (4) Interfund Transfers Interfund transfers at June 30, 2007 consisted of the following: Transfer Out Whitewater Northside Whitewater Northside Housing Low Cost Debt Debt Capital Capital General Library Authority Housing Service Service Projects Projects Nonmajor Fund Fund Fund Fund Fund Fund Fund Fund Funds Total Transfer In: General Fund - 1,798,085 1,798,085 Library Fund - 21,055 2,469,458 2,490,513 Fire Tax Fund 867,439 8,400 - 3,487,973 4,363,812 Housing Authority Fund - - 6,550,699 - 6,550,699 Low Cost Housing Fund - 3,516,729 3,100,000 6,616,729 Northside DS Fund - Whitewater CP Fund 2,424,347 2,424,347 Whitewater DS Fund - - Northside CP Fund - - 1,841,400 - - 1,841,400 Nonmajor Funds 215,397 4,907 - 852,437 168,791 1,241,532 Total 1,082,836 34,362 6,550,699 5,941,076 4,941,400 852,437 7,924,307 27,327,117 Transfers were used to: 1. Transfer in-lieu taxes from the Housing Authority Fund to the Library Fund. 2. Provide operating subsidy from the General Fund to the Fire Tax Fund. 3. Transfer property taxes from the Community Services District Fund (conduit fund) to the Fire Tax Fund. 4. Transfer in-lieu taxes from the Housing Authority Fund to the Fire Tax Fund. 5. Transfer in-lieu taxes from the Housing Authority Fund to the Parkland Fund. 6. Transfer to the Library Fund from the Community Services District Fund (conduit fund) for property taxes and the Redevelopment Agency's contribution. 49 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (4) Interfund Transfers. (Continued) 7 Transfer in-lieu taxes from the Housing Authority Fund to the Storm Water Quality Fund. 8. Transfer 20% tax increment from the Whitewater Debt Service Fund to the Low Cost Housing Fund. 9. Transfer 20% tax increment from the Northside Debt Service Fund to the Low Cost Housing Fund. 10. Transfer 20% tax increment from the Low Cost Housing Fund (conduit fund) to the Housing Authority Fund. 11. Transfer from the Northside Capital Projects Fund to fund the Library Capital Project Fund. 12. Transfer from the Northside Debt Service Fund to the Northside Capital Projects Fund to eliminate negative cash balance. 13. Transfer from the Whitewater Capital Projects Fund to the Whitewater Debt Service Fund to eliminate negative cash balance. 14. Transfer in-lieu taxes from the Housing Authority Fund to the Landscape and Lighting Districts Fund 15. Transfer from the Community Facilities District to the General Fund to reimburse the General Fund for expenditures incurred on behalf of the Community Facilities District. 16. Transfer from the Community Facilities District to the Fire Tax Fund to reimburse the Fire Tax Fund for expenditures incurred on behalf of the Community Facilities District. 17. Transfer from the Community Facilities District to the Library Fund to reimburse the Library Fund for expenditures incurred on behalf of the Community Facilities District. 18. Transfer from the General Fund to the Joint Power Financing Authority Fund to pay expenditures incurred by the Joint Power Financing Authority Fund. 19. Transfer from the Development Fee Fund to the Joint Power Financing Authority Fund to reimburse the Joint Power Financing Authority Fund for expenditures incurred on behalf of the Development Fee Fund. 50 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (5) Capital Assets Capital asset activity for the year ended June 30, 2007 was as follows: Balance at Julv 1. 2006 Balance at Additions Deletions June 30. 2007 Government activities: Buildings $ 32,175,547 Improvements 1,602,566 Furniture and fixtures 3,422,385 Equipment 1,681,610 Infrastructure - improved bike trails 54,068 Infrastructure - road system 102,815,925 Infrastructure - storm drain System 16.986.570 Total cost of depreciable assets 158.738.671 Less accumulated depreciation: Buildings (5,630,956) Improvements (395,446) Furniture and fixtures (1,966,911) Equipment (1,067,037) Infrastructure - improved bike trails (1,356) Infrastructure - road system (26,228,812) Infrastructure - storm drain system (4.316.563) Total accumulated depreciation (39.607.081) Net depreciable assets 119,131,590 Capital assets not depreciated: Land 13,015,239 Rights of way - road system 11,188,410 Rights of way - off-road trail system 1,077,859 Work In Progress 7.258.631 Total capital assets not depreciated 32.540.139 Total capital assets, net 5151.671.729 11,635,456 - 43,811,003 294,085 - 1,896,651 297,996 (649) 3,719,732 450,715 (16,140) 2,116,185 - - 54,068 2,632,906 (403,001) 105,045,830 16,986.570 15.311.158 (419,789) 173.630.040 (797,723) - (6,428,679) (39,203) - (434,649) (310,696) 649 (2,276,958) (135,029) 14,621 (1,187,445) (1,085) - (2,441) (3,064,038) 94,342 (29,198,508) (226.468) - (4.543.031) (4,574,242) 109,612 (44,071,711) 10,736,916 (310,177) 129,558,329 3,218,566 - 16,233,805 - - 11,188,410 - - 1,077,859 283.768 (7.258.632) 283.768 3.502.334 (7.258.632) 28.783.842 14.239.250 f7-568-09) 158.342.170 51 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (5) Capital Assets. (Continued) There were no significant construction commitments for major capital projects as of June 30, 2007. Depreciation expensed was charged in the following functions in the Statement of Activities: General government $ 777,621 Public safety 137,227 Public works 3,201,969 Cultural and recreation 457.425 Total $4.574.242 52 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities Long-term liability activity for the year ended June 30, 2007 was as follows: Beginning Ending Due within Balance Additions Accretion Retirements Balance One vear Revenue bonds payable: 2005A lease refunding revenue bonds $ 5,775,000 Tax allocation bonds payable: 2001A-1 tax allocation bonds 14,580,000 2001A-E tax allocation bonds 13,920,000 2001B-1 tax allocation bonds 3,145,000 2001B-E tax allocation bonds 1,155,000 2001A-1 subordinate lien tax allocation bonds 1,955,000 2001A-E subordinate lien tax allocation bonds 4,345,000 2002A subordinate lien tax allocation bonds 6,350,000 2003 A-1 Subordinate lien tax allocation bonds 1,215,826 2003 A-E Subordinate lien tax allocation bonds 5,140,000 2003 A-T Subordinate lien tax allocation bonds 1,150,000 2003 A Housing TABS 33,540,000 2003 A-1 Tax allocation bonds 1,653,854 2003 A-E Tax allocation bonds 17,845,000 2003 A-T Tax allocation bonds 4,390,000 2003 B Subordinate lien tax allocation bonds 1,960,000 2006 A-Whitewater TA Ref bonds 24,910,000 2006 A- Northside TA Ref bonds 24,210,000 Other long-term liabilities: Capital leases payable 43,428 - Compensated absences 1,274,732 683,773 Claims payable 463.935 - Total S169.021.72,~ 683.773 150,000 5,625,000 155,000 440,000 14,140,000 460,000 265,000 13,655,000 275,000 55,000 3,090,000 60,000 - 20,000 1,135,000 20,000 80,000 1,875,000 80,000 175,000 4,170,000 185,000 - 390,000 5,960,000 400,000 66,400 - 1,282,226 - - 215,000 4,925,000 220,000 15,000 1,135,000 15,000 - 1,045,000 32,495,000 1,075,000 93,141 - 1,746,995 - - 365,000 17,480,000 375,000 80,000 4,310,000 75,000 35,000 1,925,000 35,000 890,000 24,020,000 825,000 435,000 23,775,000 345,000 23,229 20,199 20,199 744,248 1,214,257 781,461 - 175.910 288.025 30.000 159.541 5 59R 397 164.266.702 5.431 660 53 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) Compensated absences, capital leases and claim liabilities have been typically liquidated from the General Fund. 2005A Lease Refunding Revenue Bonds On May 1, 2005, the Rancho Mirage Joint Powers Financing Authority, a component unit of the City of Rancho Mirage issued $5,925,000 in Refunding Revenue Bonds. The Bonds were issued to provide a portion of the funds to refund the issuer's Library Lease Revenue Bonds, Series 1995, originally issued in the principal amount of $3,375,000. The 1995 Bonds were issued to refund the issuer's Library Lease Revenue Bonds, Series 1991B, that were used to finance the acquisition, construction and equipping of a library facility for the City. The City had previously withdrawn from the Riverside City and County Public Library System, and receives the portion of property tax allocated to library services collected within the City limits. A portion of the proceeds of the 2005A Bonds, along with certain remaining funds from the 1995 Bonds were used to establish an escrow fund for the 1995 Bonds to be held in trust by an escrow agent until the first redemption date. The series 1995 Bonds were redeemed in full on August 1, 2005. The refunding was undertaken to reduce total debt service payments through the remaining term of the 1995 bonds and resulted in an economic gain of $350,512. The Authority has leased approximately 10.5 acres of land and the improvements thereon to the City pursuant to a Lease, dated as of July 1, 1995. Pursuant to a Site Lease, dated as of July 1, 1995 between the City and the issuer, the City has leased the Leased Property to the issuer in consideration for entering into the Lease. The City is obligated to pay rental payments under the Lease from any legally available monies, including amounts in its General Fund. The City has covenanted in the Lease that, so long as the City has the use and occupancy of the Leased Property, it will make rental payments ("Base Rental") to the issuer. The Base Rental is calculated to be an amount sufficient to permit the issuer to pay all scheduled debt service on the Bonds when due. The amount required for the bond reserve of the 2005A bonds is $392,914. The reserve account balance was $415,536 as of June 30, 2007. Beginning April 1, 2006, the 2005A Bonds was due in annual installments of $150,000 to $375,000 through April 1, 2030. Interest ranging from. 3% to 4.5% is due in annual installment on April 1 of each year. The annual debt service requirements for the lease revenue bonds as of June 30, 2007 are as follows: 54 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Long-term Liabilities. (Continued) Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 116,766 116,766 233,533 155,000 388,533 2009 114,441 114,441 228,883 160,000 388,883 2010 111,741 111,741 223,483 165,000 388,483 2011 108,957 108,957 217,914 175,000 392,914 2012 106,004 106,004 212,008 180,000 392,008 2013 102,741 102,741 205,483 185,000 390,483 2014 99,388 99,388 198,776 190,000 388,776 2015 95,944 95,944 191,889 200,000 391,889 2016 91,944 91,944 183,889 205,000 388,889 2017 87,716 87,716 175,433 215,000 390,433 2018 83,282 83,282 166,564 225,000 391,564 2019 78,641 78,641 157,283 235,000 392,283 2020 73,648 73,648 147,295 245,000 392,295 2021 68,441 68,441 136,883 255,000 391,883 2022 63,023 63,023 126,045 265,000 391,045 2023 57,325 57,325 114,650 275,000 389,650 2024 51,309 51,309 102,619 285,000 387,619 2025 45,075 45,075 90,150 300,000 390,150 2026 38,475 38,475 76,950 315,000 391,950 2027 31,388 31,388 62,775 325,000 387,775 2028 24,075 24,075 48,150 340,000 388,150 2029 16,425 16,425 32,850 355,000 387,850 2030 8,438 8,438 16,875 375,000 391,875 TOTALS $ 1,675,188 1,675,188 3,350,375 5,625,000 8,975,375 55 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2001A-1 Subordinate Lien Tax Allocation Paritv Bonds and 2001A-E Subordinate Lien Tax Allocation Bonds On July 1, 2001, the Redevelopment Agency of the City of Rancho Mirage issued $2,340,000 of Subordinate Lien Tax Allocation Bonds, Series 2001A-1 and $4,680,000 of Subordinate Lien Tax Allocation Bonds, Series 2001A-E. The 2001A bonds were issued for the purpose of financing certain improvements in the Whitewater Redevelopment Project Area of the Agency, to fund an escrow for future improvements in the project area, to purchase a debt service reserve fund surety bond for the bonds, and to pay the costs of issuing the bonds. Payment of principal, premium, if any and interest on the 2001A-1 bonds and the 2001A-E bonds are subordinate to payment of principal, premium, if any and interest on the Whitewater Project Area 1994A bonds and the Whitewater Project Area 1997A bonds and certain other outstanding obligations of the Agency. The 1994A and the 1997A bonds are referred to herein as the Senior Lien Bonds. The 2001A-1 bonds have annual interest ranging from 3.75% to 4.625% and annual principal installments ranging from $70,000 to $110,000 through April 1, 2015 and are subject to mandatory redemption from a sinking fund account in amounts ranging from $115,000 to $160,000 on April 1 beginning 2016 through 2023. The 2001 A-E bonds have annual interest ranging from 3.75% to 4.8% and annual principal installments ranging from $165,000 to $245,000 through April 1, 2015 and are subject to mandatory redemption from a sinking fund account in amounts ranging from $260,000 to $365,000 on April 1 beginning 2016 through 2023. The 2001A-1 and the 2001A-E bonds are secured by the surplus tax revenues of the Agency. The 2001A-1 and 2001A-E bond resolution and indentures require that bond reserve be equal to the full amount of maximum annual debt service on all outstanding Senior Lien Bonds. As of June 30, 2007, the reserve for the 2001A-1 and 2001A-E bonds was held by the fiscal agent in the form of a surety bond. 56 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2001A-1 Subordinate Lien Tax Allocation Paritv Bonds and 2001A-E Subordinate Lien Tax Allocation Bonds. (Continued) The annual payment amounts required to retire the (Whitewater Project) 2001A-1 bonds outstanding as of June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year Ai)ril 1 October 1 Interest April 1 Debt Service 2008 $ 43,956 43,956 87,911 80,000 167,911 2009 42,456 42,456 84,911 90,000 174,911 2010 40,656 40,656 81,311 90,000 171,311 2011 38,856 38,856 77,711 95,000 172,711 2012 36,896 36,896 73,793 100,000 173,793 2013 34,771 34,771 69,543 100,000 169,543 2014 32,584 32,584 65,168 105,000 170,168 2015 30,169 30,169 60,338 110,000 170,338 2016 27,625 27,625 55,250 115,000 170,250 2017 24,750 24,750 49,500 125,000 174,500 2018 21,625 21,625 43,250 130,000 173,250 2019 18,375 18,375 36,750 135,000 171,750 2020 15,000 15,000 30,000 140,000 170,000 2021 11,500 11,500 23,000 145,000 168,000 2022 7,875 7,875 15,750 155,000 170,750 2023 4,000 4,000 8,000 160,000 168,000 TOTALS $ 431,093 431,093 862,185 1,875,000 2,737,185 57 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2001A-1 Subordinate Lien Tax Allocation Paritv Bonds and 2001A-E Subordinate Lien Tax Allocation Bonds. (Continued) The annual payment amounts required to retire the (Whitewater Project) 2001A-E bonds outstanding as of June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 100,377 100,377 200,754 185,000 385,754 2009 96,678 96,678 193,357 190,000 383,357 2010 92,877 92,877 185,754 200,000 385,754 2011 88,877 88,877 177,754 205,000 382,754 2012 84,521 84,521 169,041 215,000 384,041 2013 79,818 79,818 159,635 225,000 384,635 2014 74,755 74,755 149,510 235,000 384,510 2015 69,174 69,174 138,348 245,000 383,348 2016 63,294 63,294 126,588 260,000 386,588 2017 56,631 56,631 113,263 270,000 383,263 2018 49,713 49,713 99,425 285,000 384,425 2019 42,409 42,409 84,819 300,000 384,819 2020 34,722 34,722 69,444 315,000 384,444 2021 26,650 26,650 53,300 330,000 383,300 2022 18,194 18,194 36,388 345,000 381,388 2023 9,353 9,353 18,706 365,000 383,706 TOTALS $ 988,042 988,042 1,976,083 4,170,000 6,146,083 58 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Long-term Liabilities. (Continued) 2001A-1 Tax Allocation Bonds. 2001A-E Tax Allocation Bonds. 2001B-1 Subordinate Lien Tax Allocation Bonds and 2001B-E Subordinate Lien Tax Allocation Bonds On July 1, 2001, the Redevelopment Agency of the City of Rancho Mirage issued $16,860,000 of Tax. Allocation Bonds, Series 2001A-1, $14,425,000 of Tax Allocation Bonds, Series 2001A-E, $3,440,000 of Subordinate Lien Tax Allocation Bonds, Series 2001B-1 and $1,195,000 Subordinate Lien Tax Allocation Bonds, Series 2001B-E. The 2001A bonds were issued for the purpose of financing certain improvements in the Redevelopment Plan - 1984 Project Area of the Agency, to fund an escrow for future improvements in the project area, and to pay the costs of issuing the bonds. The 2001B bonds were issued to advance refund $3,010,000 of the outstanding 1991A Civic Center Revenue Bonds, finance certain improvements within the 1984 Project Area, to fund an escrow for future improvements within the project area, fiend a reserve account for the 2001B Bonds, and to pay the cost of issuing the bonds. The proceeds used to advance refund the 1991A series were used to purchase U.S government securities. Those securities were placed in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1991A series. Payment of principal, premium, if any, and interest on the series 2001B bonds is subordinate to payment of principal, premium, if any and interest on the 2001A bonds and certain other outstanding obligations of the Agency. The 2001A-1 bonds have annual interest ranging from 3.75% to 4.625% and annual principal installments ranging from $405,000 to $605,000 through April 1, 2015 and are subject to mandatory redemption from a sinking fund account in amounts ranging from $365,000 to,$750,000 on April 1 beginning 2016 through 2033. The 2001A-E bonds have annual interest ranging from 3.75% to 4.75% and annual principal installments ranging from $250,000 to $370,000 through April 1, 2015 and are subject to mandatory redemption from a sinking fund account in amounts ranging from $390,000 to $920,000 on April 1 beginning 2016 through 2033. The 2001A-1 and 2001A-E bonds are secured by the surplus tax revenues of the Agency. The 2001B-1 bonds have annual interest ranging from 3.75% to 4.80% and annual principal installments ranging from $50,000 to $90,000 through April 1, 2012 and are subject to mandatory redemption from a sinking fund account in amounts ranging from $75,000 to $215,000 on April 1 beginning 2013 through 2033. The 2001B-E bonds have annual interest ranging from 4.0% to 5.0% and annual principal installments ranging from $20,000 to $25,000 through April 1, 2012 and are subject to mandatory redemption from a sinking fund account in amounts ranging from $25,000 to $50,000 on April 1 beginning 2013 through 2024. The 2001B-1 and 2001B-E bonds are secured by the surplus tax revenues of the Agency. 59 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2001A-1 Tax Allocation Bonds. 2001A-E Tax Allocation Bonds. 2001B-1 Subordinate Lien Tax Allocation Bonds and 2001B-E Subordinate Lien Tax Allocation Bonds. (Continued) The 2001A bond resolution and indentures require that the bond reserve policy, when added to the to amounts on deposit in the Senior Reserve Account established under the Senior indenture, be equal to the full amount of maximum annual debt service on all outstanding Senior Lien Bonds and the Series 2001A bonds. As of June 30, 2007, the 2001A reserve policy that was held in the form of a surety bond by the fiscal agent. The 2001B bond resolution and indentures require that the subordinate bond reserve be equal to the full amount of maximum annual debt service on all outstanding Series 2001B bonds. The amount required for the bond reserve of the 2001B bonds is $234,922. As of June 30, 2007, the 2001B reserve that was held by the fiscal agent was $459,083. 60 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lona-term Liabilities. (Continued) 200IA-1 Tax Allocation Bonds, 2001A-E Tax Allocation Bonds. 200113-1 Subordinate Lien Tax Allocation Bonds and 2001B-E Subordinate Lien Tax Allocation Bonds, (Continued) The annual payment amounts required to retire the (1984 Project) 2001A-1 bonds outstanding at June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 337,544 337,544 675,088 460,000 1,135,088 2009 328,919 328,919 657,838 470,000 1,127,838 2010 319,519 319,519 639,038 495,000 1,134,038 2011 309,619 309,619 619,238 510,000 1,129,238 2012 299,100 299,100 598,200 535,000 1,133,200 2013 287,731 287,731 575,463 555,000 1,130,463 2014 275,591 275,591 551,181 575,000 1,126,181 2015 262,366 262,366 524,731 605,000 1,129,731 2016 248,375 248,375 496,750 635,000 1,131,750 2017 232,500 232,500 465,000 665,000 1,130,000 2018 215,875 215,875 431,750 365,000 796,750 2019 206,750 206,750 413,500 385,000 798,500 2020 197,125 197,125 394,250 400,000 794,250 2021 187,125 187,125 374,250 425,000 799,250 2022 176,500 176,500 353,000 445,000 798,000 2023 1.65,375 165,375 330,750 465,000 795,750 2024 153,750 153,750 307,500 495,000 802,500 2025 141,375 141,375 282,750 520,000 802,750 2026 128,375 128,375 256,750 545,000 801,750 2027 114,750 114,750 229,500 570,000 799,500 2028 100,500 100,500 201,000 600,000 801,000 2029 85,500 85,500 171,000 630,000 801,000 2030 69,750 69,750 139,500 645,000 784,500 2031 53,625 53,625 107,250 680,000 787,250 2032 36,625 36,625 73,250 715,000 788,250 2033 18,750 18,750 37,500 750,000 787,500 TOTALS $ 4,953,013 4,953,013 9,906,025 14,140,000 24,046,025 61 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2001A-1 Tax Allocation Bonds. 2001A-E Tax Allocation Bonds. 2001B-1 Subordinate Lien Tax Allocation Bonds and 2001B-E Subordinate Lien Tax Allocation Bonds. (Continued) The annual payment amounts required to retire the (1984 Project) 2001A-E bonds outstanding at June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 345,159 345,159 690,319 275,000 965,319 2009 339,659 339,659 679,319 285,000 964,319 2010 333,959 333,959 667,919 300,000 967,919 2011 327,959 327,959 655,919 310,000 965,919 2012 321,566 321,566 643,131 325,000 968,131 2013 314,456 314,456 628,913 340,000 968,913 2014 306,806 306,806 613,613 355,000 968,613 2015 298,375 298,375 596,750 370,000 966,750 2016 289,588 289,588 579,175 390,000 969,175 2017 279,594 279,594 559,188 405,000 964,188 2018 269,216 269,216 538,431 430,000 968,431 2019 258,197 258,197 516,394 450,000 966,394 2020 246,666 246,666 493,331 475,000 968,331 2021 234,494 234,494 468,988 500,000 968,988 2022 221,681 221,681 443,363 525,000 968,363 2023 207,900 207,900 415,800 550,000 965,800 2024 193,463 193,463 386,925 580,000 966,925 2025 178,238 178,238 356,475 610,000 966,475 2026 162,225 162,225 324,450 640,000 964,450 2027 145,425 145,425 290,850 675,000 965,850 2028 127,706 127,706 255,413 710,000 965,413 2029 109,069 109,069 218,138 750,000 968,138 2030 89,381 89,381 178,763 785,000 963,763 2031 68,775 68,775 137,550 830,000 967,550 2032 46,988 46,988 93,975 870,000 963,975 2033 24,150 24,150 48,300 920,000 968,300 TOTALS $ 5,740,694 5,740,694 11,481,388 13,655,000 25,136,388 62 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lona-term Liabilities. (Continued) 2001A-1 Tax Allocation Bonds, 2041A-E Tax Allocation Bonds. 200113-1 Subordinate Lien Tax Allocation Bonds and 2001B-E Subordinate Lien Tax Allocation Bonds, (Continued) The annual payment amounts required to retire the (1984 Project) 2001B-1 bonds outstanding at June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 84,453 84,453 168,905 60,000 228,905 2009 83,178 83,178 166,355 60,000 226,355 2010 81,865 81,865 163,730 65,000 228,730 2011 80,370 80,370 160,740 65,000 225,740 2012 78,843 78,843 157,685 70,000 227,685 2013 77,163 77,163 154,325 75,000 229,325 2014 75,100 75,100 150,200 75,000 225,200 2015 73,038 73,038 146,075 80,000 226,075 2016 70,838 70,838 141,675 85,000 226,675 2017 68,500 68,500 137,000 90,000 227,000 2018 66,025 66,025 132,050 95,000 227,050 2019 63,413 63,413 126,825 100,000 226,825 2020 60,663 60,663 121,325 105,000 226,325 2021 57,775 57,775 115,550 110,000 225,550 2022 54,750 54,750 109,500 120,000 229,500 2023 51,450 51,450 102,900 125,000 227,900 2024 48,013 48,013 96,025 130,000 226,025 2025 44,438 44,438 88,875 140,000 228,875 2026 40,500 40,500 81,000 145,000 226,000 2027 36,422 36,422 72,844 155,000 227,844 2028 32,063 32,063 64,125 165,000 229,125 2029 27,422 27,422 54,844 175,000 229,844 2030 22,500 22,500 45,000 185,000 230,000 2031 17,297 17,297 34,594 195,000 229,594 2032 11,813 11,813 23,625 205,000 228,625 2033 6,047 6,047 12,094 215,000 227,094 TOTALS $ 1,413,933 1,413,933 2,827,865 3,090,000 5,917,865 63 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2001A-1 Tax Allocation Bonds. 2001A-E Tax Allocation Bonds. 2001B-1 Subordinate Lien Tax Allocation Bonds and 2001B-E Subordinate Lien Tax Allocation Bonds. (Continued) The annual payment amounts required to retire the (1984 Project) 2001B-E bonds outstanding at June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 31,583 31,583 63,166 20,000 83,166 2009 31,146 31,146 62,291 20,000 82,291 2010 30,696 30,696 61,391 25,000 86,391 2011 30,118 30,118 60,235 25,000 85,235 2012 29,530 29,530 59,060 25,000 84,060 2013 28,905 28,905 57,810 25,000 82,810 2014 28,202 28,202 56,404 30,000 86,404 2015 27,358 27,358 54,716 30,000 84,716 2016 26,514 26,514 53,029 30,000 83,029 2017 25,671 25,671 51,341 35,000 86,341 2018 24,686 24,686 49,373 35,000 84,373 2019 23,702 23,702 47,404 35,000 82,404 2020 22,718 22,718 45,435 40,000 85,435 2021 21,593 21,593 43,185 40,000 83,185 2022 20,468 20,468 40,935 45,000 85,935 2023 19,202 19,202 38,404 45,000 83,404 2024 17,936 17,936 35,873 50,000 85,873 2025 16,530 16,530 33,060 50,000 83,060 2026 15,105 15,105 30,210 55,000 85,210 2027 13,538 13,538 27,075 55,000 82,075 2028 11,970 11,970 23,940 60,000 83,940 2029 10,260 10,260 20,520 65,000 85,520 2030 8,408 8,408 16,815 70,000 86,815 2031 6,413 6,413 12,825 70,000 82,825 2032 4,418 4,418 8,835 75,000 83,835 2033 2,280 2,280 4,560 80,000 84,560 TOTALS $ 528,946 528,946 1,057,891 1,135,000 2,192,891 64 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2002A Subordinate Lien Tax Allocation Bonds On January 1, 2002, the Redevelopment Agency of the City of Rancho Mirage issued $7,895,000 Subordinate Lien Tax Allocation Bonds, Series 2002A. The 2002A bonds were issued for the purpose of financing certain improvements in the Whitewater Project Area of the Agency, advance refund $6,730,000 of the outstanding 1992A tax allocation bonds, purchase a debt service reserve surety bond for the bonds, and to pay the cost of issuing the bonds. The proceeds used to advance refund the 1992A series were used to purchase U.S government securities. Those securities were placed in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1992A series. Payment of principal, premium, if any, and interest on the series 2002A bonds is subordinate to payment of principal, premium, if any and interest on the Whitewater project 1994A bonds and the Whitewater project 1997A bonds, referred to as the "Senior Lien Bonds. The 2002A bonds have annual interest ranging from 3.00% to 4.80% and annual principal installments ranging from $365,000 to $615,000 through April 1, 2019 and are subject to mandatory redemption from a sinking fund account in amounts ranging from $515,000 to $540,000 on April 1 beginning 2015 through 2016. The 2002A bonds are secured by the surplus tax revenues of the Agency. The 2002A bond resolution and indentures require that a municipal bond insurance policy be purchased which provides for the principal and interest on the bonds when due to the extent that the trustee has not received payment therefore. As of June 30, 2007, the 2002A reserve policy that was held by the fiscal agent was $613,956. 65 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) LonQ-term Liabilities, (Continued) 2002A Subordinate Lien Tax Allocation Bonds, (Continued) The annual payment amounts required to retire the 2002A bonds outstanding at June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 130,139 130,139 260,278 400,000 660,278 2009 122,889 122,889 245,778 415,000 660,778 2010 114,848 114,848 229,696 435,000 664,696 2011 106,148 106,148 212,296 450,000 662,296 2012 96,867 96,867 193,734 465,000 658,734 2013 87,276 87,276 174,553 475,000 649,553 2014 77,064 77,064 154,128 495,000 649,128 2015 66,174 66,174 132,348 515,000 647,348 2016 54,329 54,329 108,658 540,000 648,658 2017 41,909 41,909 83,818 565,000 648,818 2018 28,773 28,773 57,545 590,000 647,545 2019 14,760 14,760 29,520 615,000 644,520 TOTALS $ 941,174 941,174 1,882,349 5,960,000 7,842,349 2003 A-1 Subordinate Lien Tax Allocation Bonds, 2003 A-E Subordinate Lien Tax Allocation Bonds, and 2003 A-T Subordinate Lien Tax Allocation Bonds On November 19, 2003, the Redevelopment Agency of the City of Rancho Mirage issued $1,074,378 of Subordinate Lien Tax Allocation Bonds, Series 2003 A-1, $5,140,000 of Subordinate Lien Tax Allocation Bonds, Series 2003 A-E, and $1,180,000 of Subordinate Lien Tax Allocation Bonds, Series 2003 A-T. The bonds were issued by the Agency for the purpose of financing certain improvements in the Whitewater Redevelopment Project Area, (or, in the case of the Series 2003 A-E Bonds, funding a funding an escrow for future improvements in the project area), funding a reserve account for the bonds, and paying the costs of issuing the bonds. Payment of principal, premium, if any, and interest on the bonds is subordinate to payment of principal, premium, if any, and interest on the Senior Lien Bonds. 66 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2003 A-1 Subordinate Lien Tax Allocation Bonds. 2003 A-E Subordinate Lien Tax Allocation Bonds, and 2003 A-T Subordinate Lien Tax Allocation Bonds. (Continued) The Series 2003 A-E Bonds have annual interest ranging from 2.00% to 4.25% and annual principal installments ranging from $215,000 to $300,000 through April 2012 and are subject to redemption prior to maturity. The bonds are secured by an irrevocable pledge of the surplus tax revenues of the agency. In addition, the 2003 A-E bonds are also secured by amounts on deposit in the escrow fund as provided in the indenture. The 2003 A-1 Bonds are capital appreciation bonds, issued in an amount of $1,074,377 and have a maturity value of $3,340,000 and mature April 1, 2025, and are not subject to redemption prior to maturity. The bonds are secured by an irrevocable pledge of the surplus tax revenues of the agency. The series 2003 A-T bonds are capital appreciation bonds and are subject to redemption prior to maturity. $140,000 4.90% term series 2003 A-T bonds are due April 1, 2013. $1,040,000 5.76% term series 2003 A-T bonds are April 1, 2004. The bonds are secured by an irrevocable pledge of the surplus tax revenues of the agency. The Bond resolution and indentures require that the Series 2003 Subordinate bond reserve be $542, 086. As of June 30, 2007, the series 2003 reserve that was held by the fiscal agent was $1,229. 67 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2003A-1 Tax Allocation Bonds. 2003A-T Tax Allocation Bonds. 2003A-E Tax Allocation Bonds. 2003B Subordinate Lien Tax Allocation Bonds. (Continued) The annual payment amounts required to retire the Whitewater 2003 A-1 bonds outstanding as of June 30, 2007 are as follows: Accreted Value 2008 $ - 2009 - 2010 - 2011 - 2012 - 2013 - 2014 - 2015 - 2016 - 2017 - 2018 - 2019 - 2020 - 2021 - 2022 - 2023 - 2024 - 2025 3,340.000 Total accreted value 3,340,000 Less future accretion (1.987.734) $1.352.266 68 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Long-term Liabilities. (Continued) 2003 A-1 Subordinate Lien Tax Allocation Bonds, 2003 A-E Subordinate Lien Tax Allocation Bonds, and 2003 A-T Subordinate Lien Tax Allocation Bonds, (Continued) The annual payment amounts required to retire the (Whitewater) 2003 A-E Subordinate Lien Tax Allocation bonds outstanding as of June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 99,353 99,353 198,706 220,000 418,706 2009 96,878 96,878 193,756 225,000 418,756 2010 94,066 94,066 188,131 225,000 413,131 2011 90,691 90,691 181,381 230,000 411,381 2012 86,953 86,953 173,906 245,000 418,906 2013 82,513 82,513 165,025 250,000 415,025 2014 77,825 77,825 155,650 260,000 415,650 2015 72,788 72,788 145,575 270,000 415,575 2016 67,388 67,388 134,775 280,000 414,775 2017 61,613 61,613 123,225 290,000 413,225 2018 55,631 55,631 111,263 300,000 411,263 2019 49,256 49,256 98,513 315,000 413,513 2020 41,972 41,972 83,944 335,000 418,944 2021 34,225 34,225 68,450 345,000 413,450 2022 26,247 26,247 52,494 360,000 412,494 2023 17,922 17,922 35,844 380,000 415,844 2024 9,134 9,134 18,269 395,000 413,269 TOTALS $ 1,064,453 1,064,453 2,128,906 4,925,000 7,053,906 69 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2003 A-1 Subordinate Lien Tax Allocation Bonds. 2003 A-E Subordinate Lien Tax Allocation Bonds. and 2003 A-T Subordinate Lien Tax Allocation Bonds, (Continued) The annual payment amounts required to retire the (Whitewater) 2003 A-T Subordinate Lien Tax Allocation bonds outstanding as of June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October I Interest April 1 Debt Service 2008 $ 32,280 32,280 64,559 15,000 79,559 2009 31,912 31,912 63,824 10,000 73,824 2010 31,667 31,667 63,334 15,000 78,334 2011 31,300 31,300 62,599 20,000 82,599 2012 30,810 30,810 61,619 15,000 76,619 2013 30,442 30,442 60,884 20,000 80,884 2014 29,952 29,952 59,904 15,000 74,904 2015 29,520 29,520 59,040 20,000 79,040 2016 28,944 28,944 57,888 20,000 77,888 2017 28,368 28,368 56,736 20,000 76,736 2018 27,792 27,792 55,584 25,000 80,584 2019 27,072 27,072 54,144 30,000 84,144 2020 26,208 26,208 52,416 55,000 107,416 2021 24,624 24,624 49,248 70,000 119,248 2022 22,608 22,608 45,216 75,000 120,216 2023 20,448 20,448 40,896 75,000 115,896 2024 18,288 18,288 36,576 635,000 671,576 TOTALS $ 472,234 472,234 944,467 1,135,000 2,079,467 70 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 6) Long-term Liabilities. (Continued) 2003 A Tax Allocation Housing Bonds On November 19, 2003, the Redevelopment Agency of the City of Rancho Mirage issued $34,565,000 of Tax Allocation Housing Bonds, Series 2003 A. The bonds were issued by the Agency for the purpose of financing certain improvements to the supply of low and moderate income housing in, or otherwise benefiting, the Whitewater Redevelopment Project and the Redevelopment Plan-1984 Project, purchasing a debt service reserve fund surety bond for the Bonds, and paying the costs of issuing the bonds. The $21,085,000 serial bonds have annual interest ranging from 2.00% to 5.25% and annual principal installments ranging from $1,025,000 to $1,770,000. The $5,850,000, 4 5/8% term bonds are due April 1, 2024. The $7,630,000 5.00% term bonds are due April 1, 2033. The bonds are subject to optional and mandatory redemption prior to maturity. The Bonds are secured by an irrevocable pledge of the Housing Tax Revenues. The 2003A bond resolution and indentures require that a municipal bond insurance policy be purchased which provides for the principal and interest on the bonds when due to the extent that the trustee has not received payment therefore. As of June 30, 2007, the 2003A reserve policy that was held by the fiscal agent was $2,516,106. 71 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lonsi-term Liabilities, (Continued) 2003 A Tax Allocation Housinv Bonds, (Continued) The annual payment amounts required to retire the 2003A Housing Tax Allocation bonds outstanding as of June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April I October 1 Interest April 1 Debt Service 2008 $ 720,334 720,334 1,440,669 1,075,000 2,515,669 2009 705,553 705,553 1,411,106 1,105,000 2,516,106 2010 688,978 688,978 1,377,956 1,135,000 2,512,956 2011 671,953 671,953 1,343,906 1,170,000 2,513,906 2012 651,478 651,478 1,302,956 1,210,000 2,512,956 2013 630,303 630,303 1,260,606 1,255,000 2,515,606 2014 606,772 606,772 1,213,544 1,300,000 2,513,544 2015 582,397 582,397 1,164,794 1,350,000 2,514,794 2016 556,241 556,241 1,112,481 1,400,000 2,512,481 2017 528,241 528,241 1,056,481 1,455,000 2,511,481 2018 498,231 498,231 996,463 1,515,000 2,511,463 2019 458,463 458,463 916,925 1,595,000 2,511,925 2020 416,594 416,594 833,188 1,680,000 2,513,188 2021 372,494 372,494 744,988 1,770,000 2,514,988 2022 326,031 326,031 652,063 1,860,000 2,512,063 2023 283,019 283,019 566,038 1,950,000 2,516,038 2024 237,925 237,925 475,850 2,040,000 2,515,850 2025 190,750 190,750 381,500 690,000 1,071,500 2026 173,500 173,500 347,000 725,000 1,072,000 2027 155,375 155,375 31.0,750 765,000 1,075,750 2028 136,250 136,250 272,500 800,000 1,072,500 2029 116,250 116,250 232,500 840,000 1,072,500 2030 95,250 95,250 190,500 885,000 1,075,500 2031 73,125 73,125 146,250 925,000 1,071,250 2032 50,000 50,000 100,000 975,000 1,075,000 2033 25,625 25,625 51,250 1,025,000 1,076,250 TOTALS $ 9,951,131 9,951,131 19,902,263 32,495,000 52,397,263 72 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Long-term Liabilities. (Continued) 2003A-1 Tax Allocation Bonds. 2003A-T Tax Allocation Bonds, 2003A-E Tax Allocation Bonds, 2003B Subordinate Lien Tax Allocation Bonds On November 19, 2003, the Redevelopment Agency of the City of Rancho Mirage issued $1,456,027 of Tax Allocation Bonds, Series 2003A-1, $4,540,000 of Tax Allocation Bonds, Series 2003A-T, $17,845,000 of Tax Allocation Bonds, Series 2003A-E, and $1,960,000 of Subordinate Lien Tax Allocation Bonds, Series 2003B. The Series 2003A Bonds were issued by the Agency for the purpose of financing certain improvements in the Redevelopment Plan- 1984 Project (the "Project Area") (or, in the case of the Series 2003A-E Bonds, funding an escrow for future improvements in the project area), and paying the costs of issuing the Series 2003A Bonds. The Series 2003B Bonds were issued by the Agency for the purpose of funding an escrow for future improvements in the project area, funding a reserve account for the Series 2003B Bonds upon release of funds from escrow, and paying the costs of issuing the Series 2003B Bonds. Payment of principal, premium, if any, and interest on the Series 2003B Bonds is subordinate to the payment of principal, premium, if any, and interest on the Series 2003A Bonds and certain other outstanding obligations of the Agency. The $5,225,000 Series 2003A-E Serial Bonds have annual interest ranging from 2.00% to 4.25% and annual principal payments ranging from $365,000 to $530,000. In addition, $3,685,000 4 5/8% Term Series 2003A-E Bonds are due April 1, 2024, $3,090,000 4.75% Term Series 2003A-E Bonds are due April 1, 2028, and $5,845,000 4.75% Term Series 2003A-E Bonds are due April 1, 2034. The bonds are subject to redemption prior to maturity. The Series 2003A-1 Bonds are capital appreciation bonds. The bonds are not subject to redemption prior to maturity. $749,033 of the series 2003A-1 Bonds mature April 1, 2034 at an accreted value of $3,940,000 and $706,994 of the series 2003A-1 Bonds mature April 1, 2035 at an accreted value of $3,940,000. The Series 2003A-T Term Bonds have annual interest ranging from 3.78% to 5.86% and principal amounts ranging from $305,000 to $2,030,000. The $450,000 Series 2003B Serial Bonds have annual interest ranging from 3.00% to 5.00% and annual principal payments ranging from $35,000 to $45,000. In addition, $280,000 5.25% Term Series 2003B Bonds are due April 1, 2023, $355,000 5 3/8% Term Series 2003B Bonds are due April 1, 2028, and $875,000 5.50% Term Series 2003B Bonds are due April 1, 2034. 73 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2003A-1 Tax Allocation Bonds, 2003A-T Tax Allocation Bonds. 2003A-E Tax Allocation Bonds. 2003B Subordinate Lien Tax Allocation Bonds. (Continued) The Series 2003A Bonds are secured by the pledged tax revenues of the Agency and from amounts on deposit in the reserve account established under the Senior Indenture. In addition, the Series 2003A-E Bonds are secured by amounts on deposit in the Escrow Fund established under the Senior Indenture (the "2003 Escrow Fund"). The Series 2003B Bonds are secured by the surplus tax revenues of the Agency and from amounts on deposit in the reserve account established under the Subordinate Indenture. In addition, the Series 2003B Bonds are secured by amounts on deposit in the escrow find established under the Subordinate Indenture (the "2003B Escrow Fund"). The 2003A Supplemental Indenture requires that amounts on deposit in bond reserve account, when added to amount on deposit in the Senior Reserve Account established under the Senior Indenture equal the Reserve Requirement which is the lesser of 10% of the bond proceeds of each series of bonds outstanding, 125% of Average Annual Debt Service or Maximum Annual debt service on all Series of Bonds. The Senior Reserve Account has cash and debt service reserve surety bonds equal to or exceeding the Reserve Requirement for all bonds outstanding including the Series 2003A. No additional deposit is required for the Series 2003B bonds reserve fund since these bond proceeds are in escrow and therefore excluded from the Reserve Requirement. 74 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lona-term Liabilities. (Continued) 2003A-1 Tax Allocation Bonds. 2003A-T Tax Allocation Bonds. 2003A-E Tax Allocation Bonds. 2003B Subordinate Lien Tax Allocation Bonds. (Continued) The annual payment amounts required to retire the (the 1984 Project) 2003 A-E Tax Allocation bonds outstanding as of June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 384,066 384,066 768,131 375,000 1,143,131 2009 379,847 379,847 759,694 385,000 1,144,694 2010 375,034 375,034 750,069 395,000 1,145,069 2011 369,109 369,109 738,219 405,000 1,143,219 2012 362,528 362,528 725,056 420,000 1,145,056 2013 355,178 355,178 710,356 435,000 1,145,356 2014 347,022 347,022 694,044 450,000 1,144,044 2015 338,303 338,303 676,606 465,000 1,141,606 2016 329,003 329,003 658,006 490,000 1,148,006 2017 319,203 319,203 638,406 510,000 1,148,406 2018 308,684 308,684 617,369 530,000 1,147,369 2019 297,422 297,422 594,844 550,000 1,144,844 2020 284,703 284,703 569,406 570,000 1,139,406 2021 271,522 271,522 543,044 600,000 1,143,044 2022 257,647 257,647 515,294 625,000 1,140,294 2023 243,194 243,194 486,388 655,000 1,141,388 2024 228,047 228,047 456,094 685,000 1,141,094 2025 212,206 212,206 424,413 715,000 1,139,413 2026 195,225 195,225 390,450 755,000 1,145,450 2027 177,294 177,294 354,588 790,000 1,144,588 2028 158,531 158,531 317,063 830,000 1,147,063 2029 138,819 138,819 277,638 865,000 1,142,638 2030 118,275 118,275 236,550 905,000 1,141,550 2031 96,781 96,781 193,563 950,000 1,143,563 2032 74,219 74,219 148,438 995,000 1,143,438 2033 50,588 50,588 101,175 1,040,000 1,141,175 2034 25,888 25,888 51,775 1,090,000 1,141,775 TOTALS $ 6,698,338 6,698,338 13,396,675 17,480,000 30,876,675 75 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities, (Continued) 2003A-1 Tax Allocation Bonds, 2003A-T Tax Allocation Bonds, 2003A-E Tax Allocation Bonds, 2003B Subordinate Lien Tax Allocation Bonds, (Continued) The annual payment amounts required to retire the (the 1984 Project) 2003 A-T Tax Allocation bonds outstanding as of June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 121,631 121,631 243,262 75,000 318,262 2009 120,213 120,213 240,427 85,000 325,427 2010 118,110 118,110 236,219 85,000 321,219 2011 116,006 116,006 232,012 95,000 327,012 2012 113,655 113,655 227,309 95,000 322,309 2013 111,303 111,303 222,607 100,000 322,607 2014 108,783 108,783 217,566 105,000 322,566 2015 105,967 105,967 211,934 115,000 326,934 2016 102,833 102,833 205,667 115,000 320,667 2017 99,700 99,700 199,399 125,000 324,399 2018 96,293 96,293 192,587 125,000 317,587 2019 92,887 92,887 185,774 140,000 325,774 2020 88,855 88,855 177,710 145,000 322,710 2021 84,679 84,679 169,358 155,000 324,358 2022 80,215 80,215 160,430 165,000 325,430 2023 75,463 75,463 150,926 180,000 330,926 2024 70,279 70,279 140,558 180,000 320,558 2025 65,095 65,095 130,190 195,000 325,190 2026 59,479 59,479 118,958 210,000 328,958 2027 53,326 53,326 106,652 220,000 326,652 2028 46,880 46,880 93,760 230,000 323,760 2029 40,141 40,141 80,282 245,000 325,282 2030 32,963 32,963 65,925 265,000 330,925 2031 25,198 25,198 50,396 265,000 315,396 2032 17,434 17,434 34,867 290,000 324,867 2033 8,937 8,937 17,873 305,000 322,873 TOTALS $ 2,056,322 2,056,322 4,112,645 4,310,000 8,422,645 76 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lona-term Liabilities. (Continued) 2003A-1 Tax Allocation Bonds. 2003A-T Tax Allocation Bonds. 2003A-E Tax Allocation Bonds. 2003B Subordinate Lien Tax Allocation Bonds. (Continued) The annual payment amounts required to retire the (1984 Project) 2003 B bonds outstanding as of June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April I Debt Service 2008 $ 50,019 50,019 100,038 35,000 135,038 2009 49,450 49,450 98,900 35,000 133,900 2010 48,838 48,838 97,675 30,000 127,675 2011 48,275 48,275 96,550 35,000 131,550 2012 47,553 47,553 95,106 35,000 130,106 2013 46,809 46,809 93,619 35,000 128,619 2014 46,022 46,022 92,044 40,000 132,044 2015 45,097 45,097 90,194 45,000 135,194 2016 44,028 44,028 88,056 40,000 128,056 2017 43,053 43,053 86,106 40,000 126,106 2018 42,078 42,078 84,156 45,000 129,156 2019 40,953 40,953 81,906 50,000 131,906 2020 39,641 39,641 79,281 55,000 134,281 2021 38,197 38,197 76,394 60,000 136,394 2022 36,622 36,622 73,244 55,000 128,244 2023 35,178 35,178 70,356 60,000 130,356 2024 33,603 33,603 67,206 65,000 132,206 2025 31,856 31,856 63,713 70,000 133,713 2026 29,975 29,975 59,950 70,000 129,950 2027 28,094 28,094 56,188 75,000 131,188 2028 26,078 26,078 52,156 75,000 127,156 2029 24,063 24,063 48,125 80,000 128,125 2030 21,863 21,863 43,725 80,000 123,725 2031 19,663 19,663 39,325 95,000 134,325 2032 17,050 17,050 34,100 95,000 129,100 2033 14,438 14,438 28,875 105,000 133,875 2034 11,550 11,550 23,100 420,000 443,100 TOTALS $ 960,044 960,044 1,920,088 1,925,000 3,845,088 77 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities, (Continued) 2003A-1 Tax Allocation Bonds, 2003A-T Tax Allocation Bonds, 2003A-E Tax Allocation Bonds, 2003B Subordinate Lien Tax Allocation Bonds, (Continued) The annual payment amounts required to retire the (1984 Project) 2003 A-1 bonds outstanding as of June 30, 2007 are as follows: Accreted Value 2008 $ - 2009 - 2010 - 2011 - 2012 - 2013 - 2014 - 2015 - 2016 - 2017 - 2018 - 2019 - 2020 - 2021 - 2022 - 2023 - 2024 - 2025 - 2026 - 2027 - 2028 - 2029 - 2030 - 2031 - 2032 - 2033 - 2034 3,940,000 2035 3,940,000 Total accreted value 7,880,000 Less future accretion (6,034,622) $1.845.378 78 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) 2006 A - Whitewater Tax Allocation Refundine Bonds On April 20, 2006, the Redevelopment Agency of the City of Rancho Mirage issued $24,910,000 Tax Allocation Refunding Bonds, Series 2006A (Whitewater Sub-Area). Proceeds of the Bonds were used to pay the costs of issuing the Bonds, to purchase a debt service reserve fund surety bond for the Bonds and to refund the Agency's Whitewater Redevelopment Project, Tax Allocation Refunding Bonds, Series 1994A, originally issued in the principal amount of $23,090,000, of which $18,360,000 is currently outstanding, the Agency's Whitewater Redevelopment Project Tax Allocation Parity Bonds, 1997A, originally issued in the principal amount of $4,850,000, of which $3,930,000 is currently outstanding, and the Agency's Whitewater Redevelopment Project Subordinate Tax Allocation Bonds, Series 1997B, originally issued in the principal amount of $3,575,000, of which $2,900,000 is currently outstanding. The difference in cash flows between the refunding debt and refunded debt was $1,115,694 resulting in a present value economic gain of $750,176. The prior Bonds were issued by the Agency to finance and refinance certain improvements in, or benefiting, the Whitewater Sub-Area of its Merged Redevelopment Project. The Bonds are limited obligation of the Agency payable solely from and secured by the Surplus Tax Revenues to be derived from the Sub-Area, and from the amounts on deposit in certain funds as described herein. Upon issuance of the Bonds, there will no longer be outstanding any indebtedness with a lien on the Surplus Tax Revenues senior to the lien of the Bonds. The Whitewater Sub-Area encompasses approximately 5,076 acres, or about 34% of the total incorporated area of the City. Approximately 66% of the Whitewater Sub-Area consists of steep mountain slopes and is currently not considered to be developable. Beginning April 1, 2007, the 2006A Bonds are due in annual installments of $890,000 to $2,480,000 through April 1, 2024. Interest ranging from 3.5% to 5% is due in semi-annul installment on April 1 and October 1 of each year. The reserve requirement is held by the fiscal agent in the form of a surety bond. The annual debt service requirements for the lease revenue bonds as of June 30, 2007 are as follows: 79 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Long-term Liabilities. (Continued) The annual payment amounts for Tax Allocation Refunding Bonds, Series 2006A (Whitewater) outstanding as of June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 581,731 581,731 1,163,463 825,000 1,988,463 2009 565,231 565,231 1,130,463 855,000 1,985,463 2010 548,131 548,131 1,096,263 885,000 1,981,263 2011 530,431 530,431 1,060,863 920,000 1,980,863 2012 512,031 512,031 1,024,063 960,000 1,984,063 2013 488,031 488,031 976,063 1,015,000 1,991,063 2014 462,656 462,656 925,313 1,075,000 2,000,313 2015 437,125 437,125 874,250 1,125,000 1,999,250 2016 409,000 409,000 818,000 1,180,000 1,998,000 2017 379,500 379,500 759,000 1,235,000 1,994,000 2018 348,625 348,625 697,250 1,295,000 1,992,250 2019 316,250 316,250 632,500 1,365,000 1,997,500 2020 282,125 282,125 564,250 2,045,000 2,609,250 2021 231,000 231,000 462,000 2,145,000 2,607,000 2022 177,375 177,375 354,750 2,250,000 2,604,750 2023 121,125 121,125 242,250 2,365,000 2,607,250 2024 62,000 62,000 124,000 2,480,000 2,604,000 TOTALS $ 6,452,369 6,452,369 12,904,738 24,020,000 36,924,738 80 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Long-term Liabilities. (Continued) 2006 A - Northside Tax Allocation Refunding Bonds On April 20, 2006 the Redevelopment Agency of the City of Rancho Mirage issued $24,210,000 Tax Allocation Refunding Bonds, Series 2006A (Northside Sub-Area). The proceeds of the Bonds were used to pay the costs of issuing the Bonds, to purchase a debt service reserve fund surety bond for the Bonds and to refund the Agency's Redevelopment Plan-1984 Project, Tax Allocation Refunding Bonds, Series 1994A, originally issued in the principal amount of $16,930,000, of which $14,945,000 is currently outstanding, and the Agency's Redevelopment Plan-1984 Project, Tax Allocation Bond Series, 1999A, originally issued in the principal amount of $8,680,000, of which $8,590,000 is currently outstanding. The difference in cash flows between the refunding debt and refunded debt was $1,707,934 resulting in a present value economic gain of $963,469. The prior Bonds were issued by the Agency to finance and refinance certain improvements in, or benefiting, the Northside Sub-Area of its Merged Redevelopment Project. The Northside Sub-Area encompasses approximately 4,717 acres, or about 30% of the total incorporated area of the City. The entire Northside Sub-Area consists of developed or developable land and is primarily residential in character. Beginning April 1, 2007, the 2006A Bonds are due in annual installments of $435,000 to $1,715,000 through April 1, 2033. Interest ranging from 3.5% to 5.0% is due in semi- annul installments on April 1 and October 1 of each year. The reserve requirement is held by the fiscal agent in the form of a surety bond. The annual debt service requirements for the lease revenue bonds as of June 30, 2007 are as follows: 81 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities, (Continued) The annual payment amounts for Tax Allocation Refunding Bonds, Series 2006A (Northside Sub-Area) outstanding as of June 30, 2007 are as follows: Interest Principal Total Fiscal Due Interest Due Total Due Annual Year April 1 October 1 Interest April 1 Debt Service 2008 $ 554,003 554,003 1,108,006 345,000 1,453,006 2009 547,966 547,966 1,095,931 365,000 1,460,931 2010 541,122 541,122 1,082,244 365,000 1,447,244 2011 534,278 534,278 1,068,556 385,000 1,453,556 2012 527,300 527,300 1,054,600 395,000 1,449,600 2013 519,400 519,400 1,038,800 410,000 1,448,800 2014 511,200 511,200 1,022,400 435,000 1,457,400 2015 500,869 500,869 1,001,738 450,000 1,451,738 2016 490,744 490,744 981,488 465,000 1,446,488 2017 479,119 479,119 958,238 495,000 1,453,238 2018 467,363 467,363 934,725 855,000 1,789,725 2019 445,988 445,988 891,975 890,000 1,781,975 2020 426,519 426,519 853,038 940,000 1,793,038 2021 405,956 405,956 811,913 -970,000 1,781,913 2022 384,131 384,131 768,263 1,020,000 1,788,263 2023 359,906 359,906 719,813 1,065,000 1,784,813 2024 334,613 334,613 669,225 1,115,000 1,784,225 2025 308,131 308,131 616,263 1,170,000 1,786,263 2026 281,806 281,806 563,613 1,215,000 1,778,613 2027 254,469 254,469 508,938 1,275,000 1,783,938 2028 222,594 222,594 445,188 1,335,000 1,780,188 2029 189,219 189,219 378,438 1,400,000 1,778,438 2030 154,219 154,219 308,438 1,490,000 1,798,438 2031 116,969 116,969 233,938 1,570,000 1,803,938 2032 79,681 79,681 159,363 1,640,000 1,799,363 2033 40,731 40,731 81,463 1,715,000 1,796,463 TOTALS $ 9,678,294 9,678,294 19,356,588 23,775,000 43,131,588 82 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Lone-term Liabilities. (Continued) Capital Leases Pavable The City has entered into lease agreements as lessee for financing the, acquisition of certain equipment. These agreements qualify as capital leases for accounting purposes since the title to the assets will revert to the City at the end of the leases; therefore, the leases have been recorded at the present value of the future minimum lease payments. Total book value of equipment under capital leases were $20,199 as of June 30, 2007. A schedule of the minimum required lease payments for future periods follows: Year Ended June 30 Minimum Lease Pavment 2008 $25,337 Amount of future lease payments 25,337 Less amounts representing interest (5,138) Present value of minimum lease payments $20.199 Redevelopment A2encv Reimbursement for Cost of Library In January 2006, the new Library opened at a cost of $19,159,628 and was paid for from bond proceeds of the Redevelopment Agency's Northside Project Area. Based on analysis by City staff, 21.3% of the cost of the Library is attributable to new development. In September 2004, the City's "Development Impact Fee went into effect, pursuant to Government Code Section 66001, to mitigate the impact of new development on the City's public facilities and infrastructure. One of the components of the Fee is the Library Improvements and Facilities Fee (Library Fee). The purpose of this specific fee component is to provide funding for the acquisition of land, construction and equipping of a new Library. Based on action taken by the City Council on May 18, 2006, 21.3% of the final cost of the Library or $4,081,000 is to be reimbursed to the Redevelopment Agency by the Library Fee. By June 30, 2007, $532,642 was reimbursed to the Northside Capital Projects Fund leaving a balance of $3,548,358 that will be reimbursed from future Library Fee revenues. No liability for the remaining balance has been recorded in the financial statements because payment is derived from future revenues. 83 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (7) Debt Without Governmental Commitment The City has issued a number of special assessment bonds under the State Improvement Act of 1911 and 1915. These bonds are payable only from special assessment collections from the property owners. The City is not obligated for repayment. The City is only acting as an agent for the property owners and bondholders in collecting and forwarding the special assessments toward bond debt service. The bonds are, therefore, not reported as a liability in the accompanying financial statements. The amounts collected and held by the City pending disbursement to the bondholders are accounted for in an agency fund. Approximately $13,370,000 of these bonds are outstanding at June 30, 2007. On May 1, 2004, the Joint Powers Financing Authority ("Authority), a component unit of the City of Rancho Mirage, issued $76,880,000 of revenue bonds evidencing an interest in payments to be made by the Eisenhower Medical Center (the "Corporation"). The proceeds of the bonds were used by the Corporation to refund the Corporation's 2001A Series and 2001B Series variable rate revenue bonds, finance the acquisition, construction, improvement and equipping of health care facilities and pay the costs of issuing the bonds. The Corporation's obligation to make its payments are secured by a pledge of gross revenues of the hospital. The City and the Authority are not obligated in any manner for repayment. Therefore, these bonds are not reported as a liability in the accompanying financial statements. On January 29, 1997, the Authority issued $95,000,000 in certificates of participation evidencing an interest in payments to be made by the Corporation. The certificates of participation were issued to refund $28,750,000 of the outstanding 1987 City of Rancho Mirage Hospital Revenue certificates of participation, $33,175,000 of the outstanding 1992 City of Rancho Mirage Joint Powers Financing Authority certificates of participation, certain other outstanding indebtedness of the Corporation and reimburse the Corporation for expenditures for certain prior capital improvements and equipment, and to finance certain capital projects of the Corporation facilities in Rancho Mirage. The Corporation's obligation to make its payments is secured by a pledge of gross revenues of the hospital. The City and the Authority are not obligated in any manner for repayment. The certificates are payable only from the assets of the Corporation. Therefore, these certificates are not reported as a liability in the accompanying financial statements. (8) Participation in Risk Pool The City is a member of Public Entity Risk Management Authority (PERMA), a joint powers insurance authority formed under Section 990 of the California Government Code for the purpose of jointly funding programs of insurance coverage for its members. PERMA is comprised of twenty-six participating member agencies: eighteen cities, three transit agencies and five special districts. The City participates in the liability, workers' compensation, property and business auto physical damage insurance programs of PERMA. 84 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (8) Participation in Risk Pool. (Continued) The liability program provides coverage up to $40 million per occurrence for personal injury, bodily injury, property damage and public officials' errors and omissions. Effective July 1 2005, the City increased its self-insured retention from $50,000 to $125,000 and participates in risk sharing pools for losses up to $1 million followed by PERMA's membership in the California Joint Powers Risk Management Authority (CJPRMA) for $39 million excess liability coverage. The workers' compensation program provides $200 million per accident for workers' compensation and $5 million each accident for employers' liability. The City self-insures up to a level of $250,000 pet accident or employee and participates in a risk sharing pool for losses up to $500,000 followed by PERMA's membership in the Local Agency Workers' Compensation Excess Joint Powers Authority (LAWCX) for excess coverage to the limits. The property insurance program is group purchased under a master property insurance policy with accumulated values from all participants effecting lower rates and broader coverage for members. The program covers real property, business personal property, inland marine coverage for special mobile equipment and business interruption. Commercial property coverage is written on a replacement cost basis and all risk, eliminating the traditional commercial "named peril" policy. The business auto physical damage insurance program is also group purchased under a master insurance policy with accumulated values from all participants effecting lower rates for members. Business auto physical damage coverage is written on an agreed amount basis. In addition to coverage provided by PERMA, the City also separately purchases coverage for earthquake, public employee dishonesty and public officials and employment liability. Changes in the amount of claims payable for the past two fiscal years are as follows: Current Year Claims and Beginning Changes in Claim Ending Balance Estimates Pavments Balance 2005-2006 $656,225 (123,519) (68,771) 463,935 2006-2007 463,935 (123,661) (52,249) 288,025 Claim payments represent disbursements from deposits held by PERMA on behalf of the City. None of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage for the past 3 years. 85 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (9) Reauired Disclosures Formal budgetary integration is not adopted for the Joint Powers Financing Authority Debt Service Fund or the various assessment district debt service funds. (10) Defined Benefit Pension Plan The City of Rancho Mirage contributes to the California Public Employees Retirement System (Ca1PERS), a cost sharing multiple-employer public employee defined benefit pension plan. Ca1PERS provides retirement, disability benefits, and death benefits to plan members and beneficiaries. Ca1PERS acts as a common investment and administrative agent for participating public entities within the State of California. Copies of CAPERS' annual financial report may be obtained from its executive office at 400 "P" Street, Sacramento, California 95814. Participants are required to contribute 8% of their annual covered salary. The City contributes 7% of the required 8% contribution on behalf of the employees. The employees contribute the remaining 1%. Benefit provisions and all other requirements are established by state statute and town contract with employee bargaining groups. Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer's actual plan contributions for the year. The cumulative difference is called the net pension obligation (NPO). The ARC for the period July 1, 2006 to June 30, 2007 has been determined by an actuarial valuation of the plan as of June 30, 2004. The contribution rate indicated for the period is 14.606% of payroll for the miscellaneous plan. The City's covered payroll for Ca1PERS was $5,705,597 for the year ended June 30, 2007, while the City's total payroll for all employees was $6,601,574 during the same period. In order to calculate the dollar value of the ARC for inclusion in financial statements prepared as of June 30, 2007, this contribution rate would be multiplied by the payroll of covered employees that was actually paid during the period July 1, 2006 to June 30, 2007. 86 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (10) Defined Benefit Pension Plan. (Continued) Initial plan unfunded liabilities are amortized over a closed period that depends on the plan's date of entry into Ca1PERS risk pool. Subsequent plan amendments are amortized as a level % of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a rolling 30 years period, which results in an amortization of 10% of unamortized gains and losses each year. If the plan's accrued liability exceeds the actuarial value of plan assets, then the amortization period may not be lower than the payment calculated over a 30 year amortization period. The City is part of a risk pool established for plans containing less than 100 active members as of the valuation date. In general, plans satisfying this criteria were combined into pools based on their benefit formula and membership category. THREE-YEAR TREND INFORMATION FOR PERS Annual Pension Percentage of Net Pension Fiscal Year Cost (APC) APC Contributed Obligation 6/30/05 $464,078 100% - 6/30/06 818,133 100% - 6/30/07 1,340,999 100% - (11) Deferred Compensation Plan The City maintains a deferred compensation plan under Section 457 of the Internal Revenue Code for the benefits of its employees. In November 1999, the City implemented the 401(a) deferred compensation plan, in addition to the 457 plan, of saving pre-tax dollars for retirement. These plans allow the employees to defer or postpone receipt of income. Such income deferral provides tax advantages and a savings plan for the employees. Employees can participate in both the 457 and 401(a) plans or in either one. The 457 plans permit a maximum annual contribution of $15,000 under 50 years old and $20,000 for 50 years and older. If one participates in both the 457 plan and a 401(a) plan, the maximum that one can contribute on a pre-tax basis is $59,000. The City contributes $10 per pay period to either plan or the 401(a) plan if the employee participates in both plans. All City employees are eligible for plan participation. The City formally establishes trusts in accordance with Internal Revenue Code Section 457(g) for its deferred compensation plan in prior fiscal years. The trusts were established to provide protection from the claims of the employer's general creditors. The deferred compensation assets placed in the trust have been removed from the balance sheet. Distributions are made upon the occurrence of the participant's termination, retirement, death or unforeseen emergency, and in a manner in accordance with the election made by the participant. All City employees are eligible for plan participation. 87 CITY OF RANCHO MIRAGE NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (12) Contineencies and Commitments Various claims and suits have been filed against the City in the normal course of business. Although the outcome of these matters is not presently determinable, in the opinion of legal counsel, the resolution of these matters is not expected to have a material adverse effect on the financial condition of the City. The City of Rancho Mirage Redevelopment Agency entered into an owner participation agreement executed by Desert European Motorcars in 1999 of which the Agency provided assistance for development of the dealership project of approximately $723,000 in addition to sales tax rebates of approximately $1,450,000. In fiscal year 2007, the Agency amended its operating covenant with the developer for the sales tax rebates to be capped at $3,103,400 during the first 15 year period of the operating agreement. (13) Post-Emnlovment Benefits In addition to providing pension benefits to employees, the City provides medical, dental and vision insurance benefits for two former City Council members and four retired employees. These benefits are provided under City Council Resolutions No. 89-63 and No. 95-26. Effective December 7, 2000, four years of continued medical, dental and vision insurance for the first four years of service plus six months for each subsequent year is provided by the City for a Council member upon leaving the City Council. A Council member may elect to continue participation as a member of the City's insurance plans under the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) by making payments to the City for associated premium costs. Effective July 1, 2000, continued medical, dental and vision employees and their spouse/dependents was provided pursuant Understanding between the City and the Rancho Mirage Employees insurance for retired a Memorandum of ' Association. 88 CITY OF RANCHO MIRAGE Notes to Required Supplemental Information Year ended June 30, 2007 (1) Bud2etarv Data The City uses the following procedures in establishing the budgetary data reflected 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) All appropriated amounts are as originally adopted or as amended by the City Council and lapse at year end, except for continuing appropriations for capital projects. (5) Original appropriations are modified by supplementary appropriations and transfers among budget categories. The City Manager is authorized to transfer appropriations within an object of a General Fund department and within total fund appropriations for other funds. The City Council approves all other changes. Individual amendments were not material in relation to the original appropriations. (6) The legal. level for which expenditures are not to exceed appropriations is at the fund level for all funds except the General Fund and at the object level for the General Fund. The City classifies each General Fund expenditure into one of the following three objects: personnel, operations and maintenance, and capital. (7) Formal budgetary integration is employed as a management control device during the year for the following funds which also have legally adopted annual budgets: General, Special Revenue and Capital Projects Funds. Formal budgetary integration is not employed for Debt Service Funds, except for the Redevelopment Agency Debt Service Funds, because effective budgetary control is alternatively achieved through debt indenture provisions. (8) Budgets for General, Special Revenue, Redevelopment Agency Debt Service Funds and Capital Projects Funds are adopted on a basis consistent with generally accepted accounting principles, except advances from the General Fund to other funds are budgeted as expenditures in the General Fund and as revenue in the funds receiving the advances. Repayment of advances is budgeted as revenue in the General Fund and as an expenditure in the funds repaying the advance. 89 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE GENERAL FUND Year ended June 30, 2007 Variance with Final Budget Budaeted Amounts Positive Revenues: OriLinal Final Actual (NeLyative) Taxes: Property taxes $ 2,756,556 2,967,556 2,903,389 (64,167) Sales taxes 6,033,400 6,033,400 5,545,232 (488,168) Franchise taxes 1,131,700 1,131,700 1,246,691 114,991 Transient occupancy taxes 4,875,900 5,208,900 5,176,838 (32,062) Real property transfer taxes 695,800 415,000 449,162 34,162 Licenses taxes 300,000 300,000 300,341 341 Total taxes 15,793,356 16,056,556 15,621,653 (434,903) Intergovernmental: Motor vehicle in-lieu 106,244 106,244 96,326 (9,918) Other 100,000 208,500 265,511 57,011 Total intergovernmental 206,244 314,744 361,837 47,093 Licenses and permits: Business licenses 246,500 246,500 225,352 (21,148) Construction permits 785,000 785,000 712,917 (72,083) Other 6,500 6,600 9,677 3,077 Total licenses and permits 1,038,000 1,038,100 947,946 (90,154) Charges for services: Planning fees 362,000 262,000 312,868 50,868 Plan check fees 240,000 240,000 297,920 57,920 Community facilities districts - - - - Public works inspections and fees 444,000 354,900 420,343 65,443 Reimbursement from State 49,700 49,700 34,114 (15,586) Reimbursement from Non-Govt - - 100,954 100,954 Other - - - - Total charges for services 1,095,700 906,600 1,166,199 259,599 Fines and forfeitures 20,500 20,500 40,139 19,639 Interest income 2,511,000 2,761,000 3,092,985 331,985 Net increase (decrease) in - investment fair value - - 518,993 518,993 Capital loan reimbursement - - - - Miscellaneous 401,075 400,075 415,320 15,245 Total revenues 21,065,875 21,497,575 22,165,072 667,497 (Continued) 90 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE GENERAL FUND (Continued) Variance with Final Budget Expenditures: Budgeted Amounts Positive Original Final Actual (Negative) General government: City council: Personnel $ 139,574 145,514 136,746 8,768 Operations and maintenance 18,500 18,500 16,822 1,678 Capital 7,740 7,740 1,359 6,381 Total city council 165,814 171,754 154,927 16,827 City clerk: Personnel 498,741 505,341 470,458 34,883 Operations and maintenance 243,700 264,224 239,020 25,204 Capital 5,000 5,000 3,052 1,948 Total city clerk 747,441 774,565 712,530 62,035 City manager: Personnel 1,295,504 1,442,201 1,333,059 109,142 Operations and maintenance 61,532 106,502 106,495 7 Capital 1,500 1,500 590 910 Total city manager 1,358,536 1,550,203 1,440,144 110,059 City attorney: Operations and maintenance 508,000 553,671 553,671 - Total city attorney 508,000 553,671 553,671 - Administration: Personnel 378,452 246,554 240,108 6,446 Operations and maintenance 119,882 110,482 68,579 41,903 Total administration 498,334 357,036 308,687 48,349 Finance: Personnel 472,099 476,999 420,291 56,708 Operations and maintenance 127,450 144,050 144,049 1 Total finance 599,549 621,049 564,340 56,709 (Continued) 91 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE GENERAL FUND (Continued) Variance with Final Budget Budeeted Amounts Positive Original Final Actual (Negative) Information services: Personnel $ 271,191 290,376 290,375 1 Operations and maintenance 229,850 388,035 368,280 19,755 Capital 148,500 159,300 149,767 9,533 Total information services 649,541 837,711 808,422 29,289 Information and marketing: Operations and maintenance 990,428 1,060,393 1,060,392 1 Total information & marketing 990,428 1,060,393 1,060,392 1 General government: Personnel 258,614 288,599 73,198 215,401 Operations and maintenance 1,274,243 1,274,459 1,010,283 264,176 Capital 19,500 55,195 55,193 2 Total general government 1,552,357 1,618,253 1,138,674 479,579 Special programs: Operations and maintenance 1,069,800 1,207,001 1,071,340 135,661 Total special programs 1,069,800 1,207,001 1,071,340 135,661 Planning: Personnel 1,045,791 1,057,089 929,183 127,906 Operations and maintenance 347,582 600,682 439,360 161,322 Total planning 1,393,373 1,657,771 1,368,543 289,228 Building and safety: Personnel 551,570 559,572 558,766 806 Operations and maintenance 86,385 172,225 172,225 - Total building and safety 637,955 731,797 730,991 806 Mandated programs: Operations and maintenance 174,000 199,127 106,179 92,948 Total mandated programs 174,000 199,127 106,179 92,948 Regional plan and implementation Operations and maintenance 44,545 44,545 41,655 2,890 Total regional plan and implementation 44,545 44,545 41,655 2,890 Interfund reimbursements (2,206,815) (2,206,815) (2,247,443) 40,628 Total general government 8,182,858 9,178,061 7,813,052 1,365,009 (Continued) 92 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULES GENERAL FUND (Continued) Variance with Final Budget BudLyeted Amounts Positive Original Final Actual (Negative) Public safety: Code compliance: Personnel $ 270,440 273,741 232,738 41,003 Operations and maintenance 32,300 32,300 24,254 8,046 Capital 1,420 1,415 5 Total code compliance 302,740 307,461 258,407 49,054 Emergency services: Personnel 82,234 82,335 71,848 10,487 Operations and maintenance 24,500 82,675 29,800 52,875 Capital 30,600 76,845 76,840 5 Total emergency services 137,334 241,855 178,488 5 Police services: Operations and maintenance 5,377,315 4,952,785 4,733,802 218,983 Capital - 3,290 3,287 3 Total police services 5,377,315 4,956,075 4,737,089 218,986 Citizens Option for Public Safety (COPS) Operations and maintenance 101,000 103,365 103,364 1 Capital - - - - Total COPS 101,000 103,365 103,364 1 Law Enforcement Equipment Operations and maintenance - - - - Capital - 18,448 18,448 - Total law enforcement equipment - 18,448 18,448 - Total public safety 5,918,389 5,627,204 5,295,796 268,046 Public works: Buildings and landscaping: Personnel 330,564 338,942 338,938 4 Operations and maintenance 546,350 626,945 626,941 4 Capital 25,000 56,949 56,584 365 Total buildings and landscaping 901,914 1,022,836 1,022,463 373 Street maintenance: Personnel 463,971 476,358 476,357 1 Operations and maintenance 433,400 670,852 399,626 271,226 Capital 60,000 114,873 105,951 8,922 Total street maintenance 957,371 1,262,083 981,934 280,149 Engineering: Personnel 1,262,765 1,297,154 1,279,429 17,725 Operations and maintenance 329,964 387,070 130,370 Capital - 33,304 33,300 4 Total engineering 1,592,729 1,717,528 1,443,099 17,729 Total public works $ 3,452,014 4,002,447 3,447,496 298,251 (Continued) 93 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULES GENERAL FUND (Continued) Cultural and recreation: Child Enrichment Center: Operations and maintenance Capital Total summer recreation Total cultural and recreation Capital projects: Capital improvements financed from fund balance and license tax General Fund Capital Projects License Tax Fund Capital Projects Total capital improvements Total capital projects Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources: Transfers in Transfers out Proceeds from land sale Total other financing sources Net change in fund balance Fund balance, beginning of year Fund balance, end of year Budgeted Amounts Original Final Actual Variance with Final Budget Positive (Negative) 48,500 97,300 48,619 48,681 48,500 97,300 48,619 48,681 48,500 97,300 48,619 48,681 600,000 3,728,566 3,269,600 458,966 540,000 1,987,000 830,032 1,156,968 1,140,000 5,715,566 4,099,632 1,615,934 1,140,000 5,715,566 4,099,632 1,615,934 18,741,761 24,620,578 20,704,595 3,915,983 2,324,114 (3,123,003) 1,460,477 4,583,480 - 1,674,962 1,798,085 123,123 (1,688,967) (1,368,062) (1,082,836) 285,226 - - 1,742,400 1,742,400 (1,688,967) 306,900 2,457,649 2,150,749 635,147 (2,816,103) 3,918,126 6,734,229 69,950,726 69,950,726 69,950,726 - $ 70,585,873 67,134,623 73,868,852 6,734,229 94 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE LIBRARY SPECIAL REVENUE FUND Year ended June 30, 2007 Variance with Final Budget Revenues: Intergovernmental Fines and forfeitures Interest income Net increase (decrease) in investment fair value Miscellaneous Total revenues Expenditures: Current: Cultural and recreation Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Total change in fund balances Fund balances, beginning of year Fund balances (deficit), end of year BudLyeted Amounts Positive Original Final Actual (Nefzative) 140,000 140,000 327,558 187,558 45,000 45,000 34,102 (10,898) 5,700 57,000 63,318 6,318 - - 14,951 14,951 78,000 78,000 149,366 71,366 268,700 320,000 589,295 269,295 2,855,678 2,855,678 2,707,430 148,248 2,855,678 2,855,678 2,707,430 148,248 (2,586,978) (2,535,678) 2,093,967 2,093,967 (2,118,135) 417,543 2,490,513 396,546 2,093,967 2,093,967 2,490,513 396,546 (493,011) (441,711) 372,378 814,089 1,990,299 1,990,299 1,990,299 - $ 1,497,288 1,548,588 2,362,677 814,089 95 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE FIRE TAX SPECIAL REVENUE FUND Year ended June 30, 2007 Variance with Final Budget Revenues: Intergovernmental Charges for services Interest income Net increase (decrease) in investment fair value Miscellaneous Total revenues Expenditures: Current: Public safety Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Total change in fund balance Fund balances, beginning of year Fund balances (deficit), end of year Budgeted Amounts Positive Original Final Actual (Negative) $ - 76,000 146,000 70,000 30,000 30,000 32,027 2,027 5,000 5,000 45,204 40,204 - - 6,628 6,628 - - 12,215 12,215 35,000 111,000 242,074 131,074 4,588,000 4,787,590 4,561,779 225,811 4,588,000 4,787,590 4,561,779 225,811 (4,553,000) (4,676,590) 4,509,400 4,458,400 (4,319,705) 356,885 4,363,812 (94,588) 4,509,400 4,458,400 4,363,812 (94,588) (43,600) (218,190) 44,107 262,297 369,996 369,996 369,996 - $ 326,396 151,806 414,103 262,297 96 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY SPECIAL REVENUE FUND Year ended June 30, 2007 Variance with Revenues: Intergovernmental Licenses and permits Interest income Net increase (decrease) in investment fair value Miscellaneous Total revenues Expenditures: Current: General government Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Proceeds from land sale Total other financing sources (uses) Total change in fund balance Fund balances, beginning of year Fund balances (deficit), end of year Final Budget BudLyeted A mounts Positive Orieinal Final Actual (Negative) 5,000 5,000 - (5,000) 214,300 214,300 549,455 335,155 - - 46,235 46,235 356,000 356,000 658,848 302,848 575,300 575,300 1,254,538 679,238 4,154,972 4,154,972 3,604,127 550,845 10,474,255 10,474,255 580,354 9,893,901 14,629,227 14,629,227 4,184,481 10,444,746 (14,053,927) (14,053,927) (2,929,943) 11,123,984 7,099,416 - 6,550,699 6,550,699 (465,262) - (34,362) (34,362) - - 4,000 4,000 6,634,154 - 6,520,337 6,520,337 (7,419,773) (14,053,927) 3,590,394 17,644,321 18,105,429 18,105,429 18,105,429 - $ 10,685,656 $ 4,051,502 21,695,823 17,644,321 97 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE LOW COST HOUSING SPECIAL REVENUE FUND Year ended June 30, 2007 Revenues: Interest income Net increase (decrease) in investment fair value Total revenues Expenditures: Current: General government Debt service: Principal Interest Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Total change in fund balances Fund balances, beginning of year Fund balances (deficit), end of year Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Neeative) $ 818,000 818,000 1,283,039 465,039 752,000 - 562,704 562,704 1,570,000 818,000 1,845,743 1,027,743 123,541 1,045,000 1,466,794 2,635,335 123,541 1,045,000 1,466,794 2,635,335 87,834 35,707 1,045,000 - 1,466,794 - 2,599,628 35,707 (1,065,335) (1,817,335) (753,885) 1,063,450 5,841,800 5,841,800 6,616,729 774,929 (6,672,516) (6,672,516) (6,550,699) 121,817 (830,716) (830,716) 66,030 896,746 (1,896,051) (2,648,051) (687,855) 1,960,196 32,085,816 32,085,816 32,085,816 - $ 30,189,765 29,437,765 31,397,961 1,960,196 98 CITY OF RANCHO MIRAGE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2007 Special Debt Capital Total Nonmajor Revenue Service Projects Governmental Funds Fund Funds Funds Assets: Cash and investments $ 10,886,809 - 2,761,971 13,648,780 Cash and investments with fiscal agent - 416,283 - 416,283 Interest receivable 21,109 - 4,804 25,913 Accounts receivable 200,806 - - 200,806 Due from other governments 798,526 - - 798,526 Total assets and other debits $ 11,907,250 416,283 2,766,775 15,090,308 Liabilities and fund balances Liabilities: Accounts payable $ 178,709 - 19,017 197,726 Accrued salaries and benefits 3,030 - - 3,030 Due to other funds 389,140 - - 389,140 Deposits payable 36,939 - - 36,939 Total liabilities 607,818 - 19,017 626,835 Fund balances: Reserved for encumbrances 172,284 - - 172,284 Reserved for loans receivable - - - - Reserved for debt service - 416,283 - 416,283 Reserved for Cancer Survivors' Park 50,000 - - 50,000 Reserved for Quimby Fees 1,449,758 - - 1,449,758 Unreserved: Designated for unrealized gains - and (losses) (50,341) - - (50,341) Designated for equipment replacement - - 25,000 25,000 Designated for public facilities 80,724 - - 80,724 Designated for capital projects - - 2,722,758 2,722,758 Designated for continuing appropriations 5,665,900 - - 5,665,900 Undesignated, reported in: Special revenue funds 3,931,107 - - 3,931,107 Total fund balance (deficit) 11,299,432 416,283 2,747,758 14,463,473 Total liabilities and fund balances $ 11,907,250 416,283 2,766,775 15,090,308 99 CITY OF RANCHO MIRAGE COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUND TYPES Year ended June 30, 2007 Revenues: Taxes Intergovernmental Charges for services Fines and forfeitures Special assessments Developer fees Interest income Net increase (decrease) in investment fair value Total revenues Expenditures: Current: General government Public works Cultural and recreation Capital projects Debt service: Principal Interest Service fees Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Total change in fund balances Fund balances, beginning of year Fund balances, end of year Special Debt Capital Total Nonmajor Revenue Service Projects Governmental Funds Fund Funds Fund Tvpes $ 3,796,642 - - 3,796,642 2,467,307 - - 2,467,307 437,396 - - 437,396 60,031 - - 60,031 4,700,393 - - 4,700,393 66,243 - 1,003,853 1,070,096 470,017 16,294 114,817 601,128 89,049 - 12,121 101,170 12,087,078 16,294 1,130,791 13,234,163 328,058 - - 328,058 674,380 - - 674,380 468,487 - - 468,487 552,318 - 1,327,411 1,879,729 - 150,000 - 150,000 - 238,033 - 238,033 - 1,750 - 1,750 2,023,243 389,783 1,327,411 3,740,437 10,063,835 (373,489) (196,620) 9,493,726 4,907 384,188 852,437 1,241,532 (7,755,516) - (168,791) (7,924,307) (7,750,609) 384,188 683,646 (6,682,775) 2,313,226 10,699 487,026 2,810,951 81986,206 405,584 2,260,732 11,652,522 $ 11,299,432 416,283 2,747,758 14,463,473 100 NONMAJOR SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted by law to expenditure for specified purposes. • The LANDSCAPE AND LIGHTING DISTRICTS FUND is used to account for the revenues and expenditures associated with the maintenance of landscaped streets and medians and the City's street lighting. • The COMMUNITY FACILITIES DISTRICT FUND is used to account for the revenues from Community Facilities Districts established to provide additional funding for police, fire and library services. * The COMMUNITY SERVICES DISTRICT FUND is used as a funding conduit for library and f ire services. • The PARKLAND FUND is used to account for the revenues and expenditures associated with the City's park and recreation facilities. • The GAS TAX FUND is used to account for the state gasoline tax revenues which are used for maintenance and improvement of the City's streets. • The TIPPING FEE FUND is used to account for the revenues and expenditures related to regional solid waste management programs. • The TRAFFIC SAFETY FUND is used to account for the revenues and expenditures in connection with fines and forfeitures received for state motor vehicle code violations. o The TRANSPORTATION MEASURE A FUND is used to account for a 112% sales tax that is required to be used for the maintenance and improvement of City streets. • The AIR POLLUTION REDUCTION FUND is used to account for revenues and expenditures related to air pollution mitigation efforts. The RENT CONTROL FUND is used to account for funds collected from mobilehome park owners and used to provide professional assistance on their behalf. • The STORM WATER OUALITY FUND is used to account for revenues and expenditures related to the reduction of water pollution. 101 CITY OF RANCHO MIRAGE COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS June 30, 2007 Landscape Community Community and Lighting Facilities Services Parkland Districts District District Fund Gas Tax Assets Cash and investments $ 438,655 7,239 - 3,009,478 1,008,937 Cash and investments with fiscal agent - - - - - Interest receivable 715 3,471 - 4,889 1,675 Accounts receivable - - - - - Due from other governments 29,039 89,974 295,770 21,182 31,560 Total assets $ 468,409 100,684 295,770 3,035,549 1,042,172 Liabilities and Fund Balances Liabilities: Accounts payable $ 63,552 75 - 29,803 13,733 Accrued salaries and benefits - - - 3,030 - Due to other funds - 93,370 295,770 - - Deposits payable - - - 36,939 - Total liabilities 63,552 93,445 295,770 69,772 13,733 Fund balances: Reserved for encumbrances - 7,239 - 13,300 106,788 Reserved for loans receivable - - - - - Reserved for Cancer Survivor's Park - - - 50,000 - Reserved for Quimby fees - - - 1,449,758 - Unreserved: Designated for unrealized gains and (losses) - - - (15,055) (5,157) Designated for equipment replacement - - - - Designated for public facilities - - - 80,724 - Designated for continuing appropriations - - - 304,810 909,410 Undesignated 404,857 - - 1,082,240 17,398 Total fund balance (deficit) 404,857 7,239 - 2,965,777 1,028,439 Total liabilities and fund balances $ 468,409 100,684. 295,770 3,035,549 1,042,172 102 Total Nonmajor Tipping Traffic Transportation Air Pollution Rent Storm Water Special Revenue Fee Safetv Measure A Reduction Control Ouality Funds 2,521,850 6,385 3,463,033 89,609 5,427 336,196 10,886,809 4,202 41 5,581 146 7 382 21,109 200,806 - - - - - 200,806 - 4,193 168,808 - - 158,000 798,526 2,726,858 10,619 3,637,422 89,755 5,434 494,578 11,907,250 10,330 - 45,299 - 143 15,774 178,709 - - - - - - 3,030 - - 389,140 - 36,939 10,330 - 45,299 - 143 15,774 607,818 6,886 - 38,071 - - - 172,284 - - - - - 50,000 - - - - - 1,449,758 (12,943) - (17,186) - - - (50,341) - - - - - 80,724 18,830 - 4,432,850 - - - 5,665,900 2,703,755 10,619 (861,612) 89,755 5,291 478,804 3,931,107 2,716,528 10,619 3,592,123 89,755 5,291 478,804 11,299,432 2,726,858 10,619 3,637,422 89,755 5,434 494,578 11,907,250 103 CITY OF RANCHO MIRAGE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS Year ended June 30, 2007 Landscape Community Community and Lighting Facilities Services Districts District District Parkland Gas Tax Revenues: Taxes $ 2,797,010 - - Intergovernmental 1,394,813 475,477 314,682 Licenses and permits - - - - - Charges for services - - 21,742 - Fines and forfeitures - - - - Special assessments 515,802 2,451,901 1,051,551 357,552 - Developer fees - - - 66,243 - Interest income 15,599 60,297 112,418 44,051 Net increase (decrease) in investment fair value 5,921 23,387 18,923 6,271 Miscellaneous - - - - - Total revenues 537,322 2,535,585 5,243,374 1,052,355 365,004 Expenditures: Current: General government - 62,766 - - - Public safety - - - - Public works 553,868 - - - - Cultural and recreation - - - 468,487 - Capital projects - - - 8,700 350,971 Total expenditures 553,868 62,766 - 477,187 350,971 Excess (deficiency) of revenues over (under) expenditures (16,546) 2,472,819 5,243,374 575,168 14,033 Other financing sources (uses): Transfers in 2,589 - - 1,858 - Transfers out - (2,512,142) (5,243,374) - - Total other financing sources (uses) 2,589 (2,512,142) (5,243,374) 1,858 - Total change in fund balances (13,957) (39,323) - 577,026 14,033 Fund balances, beginning of year 418,814 46,562 2,388,751 1,014,406 Fund balances (deficit), end of year $ 404,857 7,239 2,965,777 1,028,439 104 Total Nonmajor Tipping Traffic Transportation Air Pollution Rent Storm Water Special Revenue Fees Safetv Measure A Reduction Control Oualitv Funds - 999,632 - - - 3,796,642 - 262,573 19,762 - 2,467,307 413,944 - 1,710 - 437396 - 60,031 - - - - 60,031 - - - - - 323,587 4,700,393 - - - - - - 66,243 107,417 569 122,367 3,456 184 3,659 470,017 20,600 - 13,947 - - - 89,049 541,961 60,600 1,398,519 23,218 1,894 327,246 12,087,078 255,160 - - 9,350 782 - 328,058 - 59,450 - - - 61,062 674,380 - - - - - - 468,487 - - 192,647 - - - 552,318 255,160 59,450 192,647 9,350 782 61,062 2,023,243 286,801 1,150 1,205,872 13,868 1,112 266,184 10,063,835 - - - - - 460 4,907 - - - - - - (7,755,516) - - - - - 460 (7,750,609) 286,801 1,150 1,205,872 13,868 1,112 266,644 2,313,226 2,429,727 9,469 2,386,251 75,887 4,179 212,160 8,986,206 2,716,528 10,619 3,592,123 89,755 5,291 478,804 11,299,432 105 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE LANDSCAPE AND LIGHTING DISTRICTS NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Revenues: Special assessments Interest income Net increase (decrease) in investment fair value Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Total change in fund balance Fund balances, beginning of year Fund balances (deficit), end of year Final Budget $ 502,683 7,000 509,683 633,753 633,753 (124,070) (16,546) Variance with Final Budget Positive (Negative) 79,885 79,885 107,524 7,559 2,589 (4,970) 7,559 2,589 (4,970) (116,511) (13,957) 102,554 418,814 418,814 - $ 302,303 404,857 102,554 Actual 515,802 15,599 5,921 537,322 553,868 553,868 13,119 8,599 5,921 27,639 106 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE COMMUNITY FACILITIES DISTRICT NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Variance with Final Budget Final Positive Budget Actual (Neeative) Revenues: Special assessments $ 2,359,657 2,451,901 92,244 Interest income 17,475 60,297 42,822 Net increase (decrease) in investment fair value - 23,387 23,387 Total revenues 2,377,132 2,535,585 158,453 Expenditures: Current: General government 234,700 62,766 171,934 Total expenditures 234,700 62,766 171,934 Excess (deficiency) of revenues over expenditures 2,142,432 2,472,819 330,387 Other financing sources (uses): Transfers in - - - Transfers out (2,435,980) (2,512,142) (76,162) Total other financing sources (uses) (2,435,980) (2,512,142) (76,162) Total change in fund balance (293,548) (39,323) 254,225 Fund balances, beginning of year 46,562 46,562 - Fund balances (deficit), end of year $ (246,986) 7,239 254,225 107 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE COMMUNITY SERVICES DISTRICT NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Variance with Final Budget Revenues: Taxes Intergovernmental Special assessments Total revenues Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Total change in fund balance Fund balances, beginning of year Fund balances (deficit), end of year Final Positive Budget Actual (Negative) $ 2,317,500 2,797,010 479,510 1,171,750 1,394,813 223,063 1,037,000 1,051,551 14,551 4,526,250 5,243,374 717,124 4,526,250 5,243,374 717,124 (5,243,374) (5,243,374) - (5,243,374) (5,243,374) - (717,124) - 717,124 $ (717,124) - 717,124 108 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE PARKLAND NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Variance with Final Budget Final Positive BudLyet Actual (NeL-ative) Revenues: Intergovernmental $ 48,338 475,477 475,477 Charges for Services - 21,742 (26,596) Special assessments 365,000 357,552 (7,448) Developer fees 140,000 66,243 (73,757) Interest income 57,000 112,418 55,418 Net increase (decrease) in investment fair value - 18,923 18,923 Total revenues 610,338 1,052,355 (33,460) Expenditures: Current: Cultural and recreation 781,299 468,487 312,812 Capital projects - 8,700 (8,700) Total expenditures 781,299 477,187 304,112 Excess (deficiency) of revenues over expenditures (170,961) 575,168 746,129 Other financing sources (uses): Transfers in 1,858 1,858 - Proceeds from land sale - - - Total other financing sources (uses) 1,858 1,858 - Total change in fund balance (169,103) 577,026 746,129 Fund balances, beginning of year 2,388,751 2,388,751 - Fund balances (deficit), end of year $ 2,219,648 2,965,777 746,129 109 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE GAS TAX NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Variance with Final Budget Revenues: Intergovernmental Interest income Net increase (decrease) in investment fair value Total revenues Expenditures: Current: Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Fund balances, beginning of year Final Positive Budget Actual (Negative) $ 318,800 314,682 (4,118) 21,500 44,051 22,551 - 6,271 6,271 340,300 365,004 24,704 1,365,345 350,971 1,014,374 1,365,345 350,971 1,014,374 (1,025,045) 14,033 1,039,078 1,014,406 1,014,4-06 - Fund balances (deficit), end of year $ (10,639) 1,028,439 1,039,078 110 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE TIPPING FEES NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Variance with Final Budget Revenues: Charges for services Interest income Net increase (decrease) in investment fair value Total revenues Expenditures: Current: General government Total expenditures Excess (deficiency) of revenues over expenditures Fund balances, beginning of year Fund balances (deficit), end of year Final Positive BudLyet Actual (Negative) $ 264,000 413,944 149,944 86,700 107,417 20,717 - 20,600 20,600 350,700 541,961 191,261 296,015 255,160 40,855 296,015 255,160 40,855 54,685 286,801 232,116 2,429,727 2,429,727 - $ 2,484,412 2,716,528 111 232,116 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE TRAFFIC SAFETY NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Revenues: Fines and forfeitures Interest income Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over expenditures Fund balances, beginning of year Fund balances (deficit), end of year Variance with Final Budget Final Positive Budget Actual (Neeative) $ 59,000 60,031 1,031 450 569 119 59,450 60,600 1,150 59,450 59,450 - 59,450 59,450 - - 1,150 1,150 9,469 9,469 - $ 9,469 10,619 1,150 112 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE TRANSPORTATION MEASURE A NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Revenues: Taxes Intergovernmental Interest income Net increase (decrease) in investment fair value Total revenues Expenditures: Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Fund balances, beginning of year Fund balances (deficit), end of year Variance with Final Budget Final Positive Budget Actual (Neeative) $ 974,200 999,632 25,432 - 262,573 262,573 35,000 122,367 87,367 - 13,947 13,947 1,009,200 1,398,519 389,319 6,418,634 192,647 6,225,987 6,418,634 192,647 6,225,987 (5,409,434) 1,205,872 6,615,306 2,386,251 2,386,251 - $ (3,023,183) 3,592,123 113 6,615,306 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE AIR POLLUTION REDUCTION NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Revenues: Intergovernmental Interest income Total revenues Expenditures: Current: General government Total expenditures Excess (deficiency) of revenues over expenditures Fund balances, beginning of year Fund balances (deficit), end of year Variance with Final Budget Final Positive BudL-et Actual (Negative) $ 18,000 19,762 1,762 1,800 3,456 1,656 19,800 23,218 3,418 9,351 9,350 1 9,351 9,350 1 10,449 13,868 3,419 75,887 75,887 - $ 86,336 89,755 3,419 114 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE RENT CONTROL NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Variance with Revenues: Charges for services Interest income Total revenues Expenditures: Current: General government Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Total change in fund balance Fund balances, beginning of year Fund balances (deficit), end of year Final Budget Final Positive Budget Actual (Negative) $ 4,000 1,710 (2,290) - 184 184 4,000 1,894 (2,106) 8,000 782 7,218 8,000 782 7,218 (4,000) 1,112 5,112 4,000 - (4,000) 4,000 - (4,000) - 1,112 1,112 4,179 4,179 - $ 4,179 5,291 1,112 115 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE STORM WATER QUALITY NONMAJOR SPECIAL REVENUE FUND Year ended June 30, 2007 Revenues: Special assessments Interest income Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Total change in fund balance Fund balances, beginning of year Fund balances (deficit), end of year Variance with Final Budget Final Positive Budget Actual (Negative) $ 89,000 323,587 234,587 5,500 3,659 (1,841) 94,500 327,246 232,746 89,500 61,062 28,438 89,500 61,062 28,438 5,000 266,184 261,184 460 460 - 460 460 - 5,460 266,644 261,184 212,160 212,160 - $ 217,620 478,804 261,184 11.6 MAJOR AND NONMAJOR DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, principal and interest on specific long-term obligations of the City. • The WHITEWATER PROJECT AREA FUND is used to account for tax increment revenues and debt service transactions of bonds and other obligations of the Whitewater redevelopment project area. • The JOINT POWERS FINANCING AUTHORITY FUND is used to accountfor the debt service transactions of the 2005A Lease Revenue Bond issue. • The NORTHSIDE PROJECT AREA FUND is used to account for tax increment revenues and debt service transactions of bonds and other obligations of the Northside redevelopment project area. 117 CITY OF RANCHO MIRAGE COMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS June 30, 2007 Assets: Cash and investments with fiscal agent Total assets and other debits Liabilities and fund balances Liabilities: Accounts payable Total liabilities Fund balances: Reserved for debt service Total fund balance (deficit) Total liabilities and fund balances Joint Powers Financing Authoritv $ 416,283 $ - 416,283 416,283 416,283 $ 416,283 118 CITY OF RANCHO MIRAGE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR DEBT SERVICE FUND TYPES Year ended June 30, 2007 Joint Powers Financing Authoritv Revenues: Interest income $ 16,294 Total revenues 16,294 Expenditures: Debt service: Principal 150,000 Interest 238,033 Service fees 1,750 Total expenditures 389,783 Excess (deficiency) of revenues over expenditures (373,489) Other financing sources (uses): Transfers in 384,188 Transfers out - Issuance of long term debt - Payment to refunded bond escrow agent - Total other financing sources (uses) 384,188 Total change in fund balances 10,699 Fund balances, beginning of year 405,584 Fund balances, end of year $ 416,283 119 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE WHITEWATER PROJECT AREA DEBT SERVICE FUND Year ended June 30, 2007 Variance with Final Budget Final Positive Budget Actual (Neeative) Revenues: Taxes $ 15,406,000 17,583,646 2,177,646 Interest income 177,660 115,331 (62,329) Net increase (decrease) in investment fair value - 13,173 13,173 Total revenues 15,583,660 17,712,150 2,128,490 Expenditures: Debt Service: Principal 1,635,000 1,765,000 (130,000) Interest 2,121,570 1,925,562 196,008 Payments under pass-through agreements 7,905,568 7,905,568 - Payments for ERAF Shift - - - Service fees 217,075 156,466 60,609 Total expenditures 11,879,213 11,752,596 126,617 Excess (deficiency) of revenues over expenditures 3,704,447 5,959,554 2,255,107 Other financing sources (uses): Transfers in - - - Transfers out (5,917,956) (5,941,076) (23,120) Total other financing uses (5,917,956) (5,941,076) (23,120) Total change in fund balance (2,213,509) 18,478 2,231,987 Fund balances at beginning of year 949,252 949,252 - Fund balances at end of year $ (1,264,257) 967,730 2,231,987 120 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE NORTHSIDE PROJECT AREA DEBT SERVICE FUND Year ended June 30, 2007 Variance with Revenues: Taxes Interest income Net increase (decrease) in investment fair value Total revenues Expenditures: Debt Service: Principal Interest Payments under pass-through agreements Payments for ERAF Shift Service fees Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing uses Total change in fund balance Fund balances at beginning of year Fund balances at end of year Final Budget Final Positive Budget Actual dative) $ 13,803,000 15,500,000 1,697,000 215,360 156,497 (58,863) - 28,522 28,522 14,018,360 15,685,019 1,666,659 1,540,000 1,695,000 (155,000) 3,986,508 3,770,106 216,402 4,992,075 4,992,076 (1) 318,080 229,871 88,209 10,836,663 10,687,053 149,610 3,181,697 4,997,966 1,816,269 (4,941,400) (4,941,400) - (4,941,400) (4,941,400) - (1,759,703) 56,566 1,816,269 2,290,296 2,290,296 - $ 530,593 2,346,862 1,816,269 121 122 MAJOR AND NONMAJOR CAPITAL PROJECT FUNDS Capital Project Funds are used to account for resources used for the acquisition or construction of major capital projects, except for thosefinanced by certain Special Revenue Funds. • The WHITEWATER PROJECT AREA FUND is used to account for proceeds of tax allocation bonds and other obligations issued to fund construction of specific improvements in the Whitewater redevelopment project area. • The DEVELOPMENT FEE FUNDS are used to account for fees collected on new residential and commercial development which are then used to mitigate the impact of the new development on the City. • The NORTHSIDE PROJECT AREA FUND is used to account for proceeds of tax allocation bonds and other obligations issued to fund construction of specific improvements in the Northside redevelopment project area. • The LIBRARY FUND is used to account for the revenues and expenditures associated with the acquisition and equipping of the City's public library. * The ASSESSMENT DISTRICTS FUND is used to account for activities relating to street improvement and construction, flood control and utility undergrounding for specific areas of the City. 123 CITY OF RANCHO MIRAGE COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS June 30, 2007. Total Nonmajor Assessment Development Capital Projects District Librarv Fees Funds Assets Cash and investments $ 333,665 15,086 2,413,220 2,761,971 Interest receivable 548 - 4,256 4,804 Total assets $ 334,213 15,086 2,417,476 2,766,775 Liabilities and fund balances Liabilities: Accounts payable $ - 15,086 3,931 19,017 Total liabilities - 15,086 3,931 19,017 Fund balances: Unreserved: Designated for equipment replacement 25,000 - - 25,000 Designated for capital projects 309,213 - 2,413,545 2,722,758 Total fund balances 334,213 - 2,413,545 2,747,758 Total liabilities and fund balances $ 334,213 15,086 2,417,476 2,766,775 124 CITY OF RANCHO MIRAGE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECTS FUNDS Year ended June 30, 2007 Total Nonmajor Assessment Development Capital Projects District Librarv Fees Funds Revenues: Interest income $ 18,355 - 96,462 114,817 Developer fees - - 1,003,853 1,003,853 Net increase (decrease) in investment fair value - - 12,121 12, 121 Miscellaneous - - - - Total revenues 18,355 - 1,112,436 1,130,791 Expenditures: Capital projects 330,389 852,437 144,585 1,327,411 Total expenditures 330,389 852,437 144,585 1,327,411 Excess (deficiency) of revenues over (under) expenditures (312,034) (852,437) 967,851 (196,620) Other financing sources (uses): Transfers in - 852,437 - 852,437 Transfers out - - (168,791) (168,791) Total other financing sources (uses) - 852,437 (168,791) 683,646 Total change in fund balances (312,034) - 799,060 487,026 Fund balances (deficit) at beginning of year. 646,247 - 1,614,485 2,260,732 Fund balances, end of year $ 334,213 - 2,413,545 2,747,758 125 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE WHITEWATER PROJECT AREA CAPITAL PROJECTS FUND Year ended June 30, 2007 Revenues: Intergovernmental Charges for services Interest income Net increase (decrease) in investment fair value Miscellaneous Total revenues Expenditures: Current: General government Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Proceeds from land sale Total other financing uses Total change in fund balance Fund balances, beginning of year Fund balances (deficit), end of year Final Budget $ 914,000 97,400 2,100 1,013,500 957,331 4,790,395 5,747,726 Actual 800,000 304,696 88,517 6,600 1,199,813 1,242,186 809,132 2,051,318 Variance with Final Budget Positive (Negative) (114,000) 207,296 88,517 4,500 186,313 (284,855) 3,981,263 3,696,408 (4,734,226) (851,505) 3,882,721 896,396 2,424,347 1,527,951 - 481,437 481,437 896,396 2,905,784 2,009,388 (3,837,830) 2,054,279 5,892,109 7,135,894 7,135,894 - $ 3,298,064 9,190,173 5,892,109 126 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE NORTHSIDE PROJECT AREA CAPITAL PROJECTS FUND Year ended June 30, 2007 Variance with Final Budget Revenues: Charges for services Interest income Net increase (decrease) in investment fair value Total revenues Expenditures: Current: General government Capital projects Debt Service: Service fees Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Proceeds from land sale Total other financing uses Total change in fund balance Fund balances, beginning of year Fund balances, end of year Final Positive Budget Actual (Negative) $ - 110,572 110,572 266,253 1,526,322 1,260,069 - 605,899 605,899 266,253 2,242,793 1,976,540 949,031 457,427 491,604 8,712,909 80,662 8,632,247 9,661,940 538,089 9,123,851 (9,395,687) 1,704,704 11,100,391 1,377,822 1,841,400 (463,578) (431,450) (852,437) 420,987 946,372 988,963 (42,591) (8,449,315) 2,693,667 11,142,982 32,350,554 32,350,554 - $ 23,901,239 35,044,221 11,142,982 127 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE LIBRARY NON-MAJOR CAPITAL PROJECTS FUND Year ended June 30, 2007 Expenditures: Current: Capital projects Total expenditures Other financing sources (uses): Transfers in Total other financing uses Total change in fund balance Fund balances, beginning of year Fund balances (deficit), end of year Final Budget $ 1,098,269 1,098,269 (1,098,269) $ (1,098,269) Variance with Final Budget Positive Actual LT~egative) 852,437 245,832 852,437 245,832 852,437 852,437 852,437 852,437 - 1,098,269 1,098,269 128 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE DEVELOPMENT FEES NON-MAJOR CAPITAL PROJECTS FUND Year ended June 30, 2007 Variance with Revenues: Interest income Developer fees Net increase (decrease) in investment fair value Total revenues Expenditures: Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing uses Total change in fund balance Fund balances, beginning of year Fund balances, end of year Final Budget Final Positive Budget Actual (Negative) $ 144,600 96,462 (48,138) 1,896,000 1,003,853 (892,147) - 12,121 12,121 2,040,600 1,112,436 (928,164) 735,572 144,585 590,987 735,572 144,585 590,987 1,305,028 967,851 (337,177) - (168,791) (168,791) - (168,791) (168,791) 1,305,028 799,060 (505,968) 1,614,485 1,614,485 - $ 2,919,513 2,413,545 (505,968) 129 CITY OF RANCHO MIRAGE BUDGETARY COMPARISON SCHEDULE ASSESSMENT DISTRICT NON-MAJOR CAPITAL PROJECTS FUND Year ended June 30, 2007 Revenues: Interest income Miscellaneous Total revenues Expenditures: Current: Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Total other financing uses Total change in fund balance Fund balances, beginning of year Fund balances, end of year 130 Variance with Final Budget Final Positive Budget Actual j2 egative) - 18,355 18,355 18,355 18,355 330,390 330,389 1 330,390 330,389 1 (330,390) (312,034) 18,356 (330,390) (312,034) 18,356 646,247 646,247 - 315,857 334,213 18,356 AGENCY FUNDS Agency Funds are used to account for assets held by the City in afiduciary capacity for individuals, governmental entities and others. • The CITY AGENCY FUND is used to account for refundable customer deposits. • The ASSESSMENT DISTRICTS FUND is used to account for assessment collections and debt service payments of assessment districts whose debt is not an obligation of the City. 131 CITY OF RANCHO MIRAGE AGENCY FUNDS COMBINING SCHEDULE OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES Year ended June 30, 2007 Balance at Balance at July 1, 2006 Additions Deductions June 30, 2007 CITY AND AGENCY FUND Assets: Cash and Investments $ 2,877,759 1,917,820 1,529,605 3,265,974 Total assets $ 2,877,759 1,917,820 1,529,605 3,265,974 Liabilities: Accounts payable $ 843,527 1,011,342 843,527 1,011,342 Deposits payable 2,034,232 1,926,720 1,706,320 2,254,632 Total liabilities $ 2,877,759 $ 2,938,062 $ 2,549,847 $ 3,265,974 ASSESSMENT DISTRICTS FUND Assets: Cash and Investments $ 979,541 1,576,868 1,879,442 676,967 Cash and Investments with fiscal agent 1,564,078 2,012,561 2,053,228 1,523,411 Interest receivable 650 939 650 939 Accounts receivable 992 - 992 - Due from other governments 74,201 261,625 74,201 261,625 Total assets $ 2,619,462 3,851,993 4,008,513 2,462,942 Liabilities: Accounts payable $ 136 - 136 - Due to City of Rancho Mirage - - - - Due to bondholders 2,619,326 3,851,993 4,008,377 2,462,942 Total liabilities $ 2,619,462 3,851,993 4,008,513 $ 2,462,942 TOTALS-ALL AGENCY FUNDS Assets: Cash and investments $ 3,857,300 3,494,688 3,409,047 3,942,941 Cash and investments with fiscal agent 1,564,078 2,012,561 2,053,228 1,523,411 Interest receivable 650 939 650 939 Accounts receivable 992 - 992 - Due from other governments 74,201 261,625 74,201 261,625 Total Assets $ 5,497,221 5,769,813 5,538,118 5,728,916 Liabilities: Accounts payable $ 843,663 1,011,342 843,663 1,011,342 Deposits payable 2,034,232 1,926,720 1,706,320 2,254,632 Due to other funds - - - - Due to bondholders 2,619,326 3,851,993 4,008,377 2,462,942 Total liabilities $ 5,497,221 6,790,055 6,558,360 5,728,916 132 STATISTICAL SECTION The statistical section provides trend data and nonfinancial information useful in assessing the City's financial condition. 133 t'Y OF RANCHO IGE Net Assets by Component Last Five Fiscallears (accrual basis of accounting) overnmental activities: Invested in capital assets, net of related debt Restricted for: Community development Public safety Public works Cultural and recreation Unrestricted tal governmental acti - i assets asS The City of Rancho Nfirage implemented GASB 34 far the fiscal year ended Jame 30, 2003. Inforrnntion prior to the implementation of GASB is not available. Fiscal Year 2003 2004 2005 2006 69,375,185 62,359,050 59,485,576 77 17,360,868 15,998,651 13,978,688 75 88,670 90,892 294,125 52 3,772,544 4,271,544 3,686,443 , 93 3,637,645 3,892,437 3,948,224 4,379,050 71,624,608 76,954,667 77,774,930 x:64 520 859 5 163x567 241 159 167 986 i , , 2007 64,597,727 33,777,778 514,477 5,511,462 5,328,454 74,230,761 183,960,659 CITY OF RANCHO MIRAGE Changes in Net Assets Last Five Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 2007 Expenses: Governmental activities: General government $ 9,694,081 9,900,755 14,122,076 16,020,796 14,046,413 Public safety 6,979,064 8,377,068 8,635,586 10,567,863 9,993,457 Public works 12,406,695 16,403,184 17,856,840 19,164,023 3,606,363 Cultural and recreation 1,942,727 4,314,325 5,663,369 5,495,894 3,609,893 Interest on long-term debt and other charges 6,577,179 9,700,908 8,956,761 9,471,741 7,324,379 Total governmental activities expenses 37,599,746 48,696,240 55,234,632 60,720,317 38,580,505 Program revenues: Governmental activities: Charges for services: General government 8,560,448 7,184,229 6,234,686 3,663,881 4,581,201 Public safety 977,589 1,258,480 1,792,820 352,388 487,634 Public works 2,406,442 4,042,919 5,012,706 5,346,281 3,059,495 Cultural and recreation 1,101,716 840,894 890,253 1,065,870 1,641,650 Total governmental activities program revenues 13,046,195 13,326,522 13,930,465 10,428,420 9,769,980 Total net revenues (expenses) (24,553,551) (35,369,718) (41,304,167) (50,291,897) (28,810,525) General revenues and other changes in net assets: Taxes: Property taxes 14,470,702 15,509,768 18,393,896 21,318,158 23,538,553 Transient occupancy taxes 5,195,663 5,148,725 5,644,962 5,835,222 5,176,838 Sales tax 3,877,260 4,102,089 3,985,310 5,861,699 5,545,232 Franchise taxes 868,641 921,876 970,997 1,068,537 1,246,691 Motor vehicle in lieu 862,191 722,707 396,845 107,131 96,326 Library and fire services 3,366,228 3,700,066 4,148,420 7,053,984 7,778,959 Other Taxes 197,084 219,309 - 222,057 265,511 Investment income, net of increase (decrease) 3,713,669 970,695 3,614,728 5,369,317 8,660,681 in fair value Other general revenues 943,040 1,150,065 99,298 2,128,117 2,622,082 Total general revenues 33,494,478 32,445,300 37,254,456 48,964,222 54,930,873 Changes in net assets 8,940,927 (2,924,418) (4,049,711) (1,327,675) 26,120,348 Net assets at beginning of year 156,918,593 166,491,659 1 163,217,697 159,167,986 157,840,311 Net assets at end of year $165,859,520 163,567,241 159,167,986 157,840,311 183,960,659 The City of Rancho Mirage implemented GASB 34 for the fiscal year ended June 30, 2003. Information prior to the implementation of GASB 34 is not available. 1 Net Assets at beginning of year, as restated Investment income for the year ended June 30, 2007 includes unrealized gains of $ 1,986,792 135 CITY OF RANCHO MIRAGE Fund Balances of Governmental Funds Last Five Fiscal Years (modified accrual basis of accounting) Fiscal Year 2003 2004 2005 General fund: Reserved for: Encumbrances Prepaid items Loans receivable Debt service Advances to other funds License Tax COPS program Unreserved Total general fund All other governmental funds: Reserved for: Encumbrances Prepaid items Loans receivable Special assessments Debt service Advances to other funds Cancer Survivors' Park Quimby fees Unreserved, reported in: Special revenue funds Debt service funds Capital projects funds Total all other governmental funds 2006 2007 $ 554,320 1,821,717 10,835,992 1,822,843 1,564,014 116,500 73,047 97,298 88,120 155,520 579,723 288,938 288,938 288,938 288,938 - - 2,133,201 5,580,172 - 7,685,496 7,112,815 7,112,815 20,051 - 9,328,152 1,920,556 2,576,513 2,443,861 1,139,379 185,016 111,411 82,074 38,309 18,409 46,503,888 57,598,268 47,964,792 59,668,431 70,702,592 64,953,095 68,926,752 71,091,623 69,950,726 73,868,852 791,385 2,500,437 10,193,602 3,682,838 801,377 - 300 344 - 480 4,736,579 4,759,419 4,086,094 3,962,513 3,295,198 560,146 547,939 546,512 546,512 546,512 5,696,694 7,684,297 12,802,186 32,690,826 3,730,875 50,000 50,000 50,000 50,000 50,000 972,403 1,140, 848 1,275,649 1,324,736 1,449,758 22,631,276 57,417,294 47,890,690 22,103,916 57,556,982 3,561,851 3,653,864 (22,412) 2,762,927 4,759,564 32,140,126 53,074,456 40,731,140 39,805,788 45,692,277 71,140,460 130,828, 854 117,553,805 106,930,056 117,883,023 Total all governmental funds $136,093,555 199,755,606 188,645,428 176,880,782 191,751,875 The City of Rancho Mirage implemented GASB 34 for the fiscal year ended June 30, 2003. Information prior to the implementation of GASB 34 is not available. 136 CITY OF RANCHO MIRAGE Changes in Fund Balances of Governmental Funds Last Five Fiscal Years (modified accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 2007 Revenues: Taxes $ 37,538,191 41,450,397 42,619,827 49,388,634 52,501,941 Intergovernmental 3,602,278 5,352,333 7,365,464 8,265,208 4,102,702 Licenses and permits 1,585,221 1,862,830 1,463,437 995,315 947,946 Charges for services 2,497,252 4,341,048 3,470,340 1,654,878 1,746,194 Fines and forfeitures 140,889 160,400 132,682 134,049 134,272 Special Assessments 1,868,674 1,810,415 1,821,072 4,245,759 4,700,393 Developer fees 249,748 139,100 1,273,513 938,563 1,070,096 Interest income 5,030,632 4,198,425 5,621,024 6,412,795 7,737,975 Net increase (decrease) in investment fair value 412,363 (3,104,659) (333,530) (881,240) 1,986,792 Proceeds from property owner debt 1,178,244 - - - - Miscellaneous 770,728 1,264,267 848,176 1,614,856 1,242,349 Total revenues 54,874,220 57,474,556 64,282,005 72,768,817 76,170,660 Expenditures Current: General government 9,354,786 9,758,475 13,515,267 12,615,962 13,532,684 Public safety 6,914,063 8,294,837 8,581,486 8,778,261 9,857,575 Public works 3,256,957 3,551,465 3,656,569 3,873,142 4,121,876 Cultural and recreation 1,724,009 1,933,540 2,198,614 3,311,559 3,224,536 Capital Projects 13,846,019 15,904,160 25,856,533 30,311,886 7,449,509 Debt service: Principal 1,820,000 1,885,000 2,420,000 3,640,000 4,655,000 Interest 5,473,745 6,323,322 8,184,449 8,242,037 7,400,495 Payments under pass-through 9,159,659 10,102,734 11,297,084 13,073,751 12,897,644 agreements Payments for ERAF shift 587,524 993,674 1,935,183 1,941,705 - Service fees 534,619 2,662,830 677,240 1,458,592 388,087 Total expenditures 52,671,381 61,410,037 78,322,425 87,246,895 63,527,406 Excess (deficiency) of revenues over (under) expenditures 2,202,839 (3,935,481) (14,040,420) (14,478,078) 12,643,254 Other financing sources (uses): Transfers in 15,340,567 17,512,520 33,145,467 41,552,009 27,327,117 Transfers out (15,340,567) (17,512,520) (33,145,467) (41,552,009) (27,327,117) Proceeds from sale of capital assets 690,112 - - 1,597,576 2,227,837 Issuance of long-term debt 101,440 67,760,405 5,925,000 49,120,000 - Premium (discount) on issuance of debt - - - 1,360,413 - Payment to refunded bond escrow agen - - (3,190,278) (49,364,555) - Total other financing sources (uses) 791,552 67,760,405 2,734,722 2,713,434 2,227,837 Net change in fund balances $ 2,994,391 63,824,924 (11,305,698) (11,764,644) 14,871,091 Debt service as a percentage of noncapital expenditures 18.8% 18.0% 20.2% 20.9% 21.5% The City of Rancho Mirage implemented GASB 34 for the fiscal year en ded June 30, 2003. Information prior to the implementation of GASB 34 is not available. 137 I OF RANCHO MIRAGE Major Iffe Sources - Governmen Last Ten Fiscal Years {modified accrual basis of accoun City Fiscal Property Tax tear and RDA Transi Special nd Tax Increment Interest Occup Assessments Franchise _ 98 $12,920,217 4,029, 4,917, 1,570,972 675, 99 12,861,757 4}7, 4,982, 1,682,791 673, 2000 14,632,796 QqS9 5,208, 1,713,394 712, 2001 17,559,252 4 5, 5,442,E 241,074 656, 2002 18,971,350 4 2, 4,928, 792,000 773,- 2003 22,096,343 5 95, 868,674 868,(m 2004 24,396,668 L 4 48, 810, . 876 2005 27,287,220 5 44, 821,072 970,997 1 2006 31,446,448 6 6068,537 2007 34,780,472 7,632,660 5,17618 4,746,585 1,246,691 ge change: 07 169.2%n 89.4%n 5. 0 202.110 84.7% Charges for 947 Total 27,290,490 27,957,992 4,322,343 35,704,430 36,730,702. 39,392,175 40,975,29% 47,552,565 %n -4.4% -48.8% 1.07.0% J39 CITY OF RANCHO MIRAGE Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years City Total Year Assessed Less Less Taxable Ended Secured Unsecured Property Property Homeowner's Assessed June 30 Property Property Value Exemptions Exemptions Value 1998 2,954,159,028 63,302,144 3,017,461,172 214,491,949 21,729,042 2,781,240,181 1999 2,917,963,998 68,476,660 2,986,440,658 163,964,602 22,510,602 2,799,965,454 2000 3,073,960,952 132,904,802 3,206,865,754 222,472,380 22,719,684 2,961,673,690 2001 3,527,531,746 157,734,585 3,685,266,331 247,327,127 23,355,186 3,414,584,018 2002 3,844,540,670 134,380,571 3,978,921,241 232,617,614 24,695,222 3,721,608,405 2003 4,346,428,520 134,199,032 4,480,627,552 250,166,114 26,071,744 4,204,389,694 2004 4,815,526,070 156,040,389 4,971,566,459 264,652,158 28,545,390 4,678,368,911 2005 5,430,429,840 175,459,045 5,605,888,885 319,303,835 29,221,822 5,257,363,228 2006 6,199,345,440 211,188,516 6,410,533,956 332,430,426 31,384,677 6,046,718,853 2007 7,162,393,349 217,992,151 7,380,385,500 329,830,054 32,739,367 7,017,816,079 NOTE: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of I% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Source: Riverside County Auditor-Controller's Office 140 Redevelopment Agency Total Year Assessed Less Less Taxable Total Ended Secured Unsecured Property Property Homeowner's Assessed Direct June 30 PrODertv Property Exemptions Exemptions Value Tax Rate 1998 2,665,684,983 60,837,063 2,726,522,046 205,231,218 19,469,442 2,501,821,386 1.31220 1999 2,629,274,060 64,915,318 2,694,189,378 157,236,662 20,057,802 2,516,894,914 1.31450 2000 2,734,486,241 130,232,092 2,864,718,333 218,780,230 20,118,484 2,625,819,619 1.20519 2001 3,109,876,216 148,271,167 3,258,147,383 235,798,556 20,517,386 3,001,831,441 1.27492 2002 3,363,840,954 127,789,276 3,491,630,230 222,281,182 21,479,422 3,247,869,626 1.27162 2003 3,746,836,561 129,406,724 3,876,243,285 245,925,924 22,321,144 3,607,996,217 1.25962 2004 4,033,033,188 149,571,849 4,182,605,037 257,278,401 23,680,390 3,901,646,246 1.27300 2005 4,419,922,378 163,007,882 4,582,930,260 307,587,971 23,873,822 4,251,468,467 2006 4,834,376,596 196,374,667 5,030,751,263 317,032,926 24,794,877 4,688,923,460 2007 5,407,013,029 198,783,022 5,605,796,051 326,988,756 25,166,767 5,253,640,528 r~ 1.24581 1.25400 1.27834 141 CITY OF RANCHO MIRAGE Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years (per $100 of Assessed Value) 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 General 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Debt Service - - - - - - - - - - Desert Sands Unified School 0.09750 0.09750 0.09750 0.09750 0.09750 0.09750 0.09581 0.07674 0.07613 0.07561 Palm Springs Unified B, IA 0.05110 0.05620 0.05609 0.06192 0.06002 0.06052 0.05715 0.05012 0.05912 0.05468 Palm Springs Unified B,IB - - - - - - - - - - Palm Springs Unified School - - - - - - - - Desert Community College - - - - - - 0.01994 0.01995 0.01995 0.01995 Coachella Valley Water 0.02080 0.02080 0.02080 0.02080 0.02080 0.02080 0.02080 0.02080 0.02080 0.04000 District Coachella Valley Water 0.00610 0.00590 0.00190 0.00170 0.00170 0.00060 0.00020 0.00020 0.00000 0.00090 Improvement District 53 Coachella Valley Water 0.05670 0.05410 0.02890 0.02300 0.02160 0.02020 0.01910 0.01800 0.01800 0.00720 Improvement District 54 Coachella Valley Water - - - - - - - - - Improvement District 16 Coachella Valley Water - - - - - - - - Improvement District 57 Desert Water Agency 0.08000 0.08000 - 0.07000 0.07000 0.06000 0.06000 0.06000 0.06000 0.08000 Desert Hospital Debt Service - - - - - - - - - Total 1.31220 1.31450 1.20519 1.27492 1.27162 1.25962 1.27300 1.24581 1.25400 1.27834 Source: Riverside County Auditor-Controller's Office 142 CITY OF RANCHO MIRAGE Principal Property Tax Payers Current Year 2007 Taxpayer Star wood Mission Hills CMBS I GenLB Rancho Peter Solomon River Retail Rancho Las Palmas Resort & Spa WVC Rancho Mirage Inc. Eisenhower Medical Center Walter H. Annenberg Thunderbird Villas Pan Pacific LLC Land Use Hotel Hotel Residential Properties Shopping Center / Mall Hotel Resort / Timeshare Professional Medical Residential Properties Residential Shopping Center Taxable Assessed Value $ 118,565,616 64,906,945 60,745, 814 60,595,869 58,033,955 53,341,208 37,288,735 31,787,655 31,714,912 26,472,215 $ 543,452,924 Percent of Total City & RDA Taxable Assessed Value 1.04% 0.57% 0.53% 0.53% 0.51% 0.47% 0.33% 0.28% 0.28% 0.23% The amounts shown above include assessed value data for both the City and the Redevelopment Agency. Source: California Municipal Statistics, Inc. and Riverside County Auditor-Controller's Office 4.77% 143 CITY OF RANCHO MIRAGE Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 1998 12,515,292 12,685,434 101.36% 234,783 12,920,217 103.24% 1999 12,355,322 12,743,790 103.14% 117,967 12,861,757 104.10% 2000 13,349,890 14,252,893 106.76% 379,903 14,632,796 109.61% 2001 15,999,408 16,969,106 106.06% 590,146 17,559,252 109.75% 2002 17,922,082 18,768,906 104.73% 202,444 18,971,350 105.85% 2003 20,681,805 21,911,251 105.94% 185,092 22,096,343 106.84% 2004 22,998,519 24,160,708 105.05% 235,960 24,396,668 106.08% 2005 25,343,548 26,990,846 106.50% 296,374 27,287,220 107.67% 2006 28,810,194 30,919,317 107.32% 527,131 31,446,448 109.15% 2007 32,869,381 33,739,177 102.65% 1,041,295 34,780,472 105.81% NOTE: The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed- through to other agencies. Source: Riverside County Auditor Controller's Office City of Rancho Mirage 144 CITY OF RANCHO MIRAGE Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Percentage Year Revenue Tax Allocation Advances of Personal Per End Bonds Bonds' Payable Total Income Capita 1998 6,615,000 54,030,000 - 60,645,000 10.21% 5,492 1999 6,500,000 53,140,000 - 59,640,000 9.56% 5,223 2000 6,375,000 60,890,000 - 67,265,000 9.98% 5,633 2001 6,245,000 59,915,000 3,569,909 69,729,909 8.63% 5,011 2002 3,195,000 102,445,000 5,636,919 111,276,919 12.40% 7,757 2003 3,150,000 100,670,000 7,685,496 111,505,496 11.59% 7,451 2004 3,105,000 166,635,304 7,112,815 176,853,119 17.26% 11,397 2005 5,925,000 164,408,511 7,112,815 177,446,326 16.08% 10,809 2006 5,775,000 161,464,681 - 167,239,681 14.18% 10,031 2007 2,625,000 142,993,361 - 145,61.8,361 11.81% 8,594 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Sources: City of Rancho Mirage and Wheeler's Demographic Profiles of the Coachella Valley 145 CITY OF RANCHO MIRAGE Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Outstanding General Bonded Debt Fiscal Year Percent of Ended Revenue Tax Allocation Assessed Per June 30 Bonds Bonds Total Value 1 Capita 1998 6,615,000 54,030,000 60,645,000 1.06% 5,492 1999 6,500,000 53,140,000 59,640,000 1.05% 5,223 2000 6,375,000 60,890,000 67,265,000 1.11% 5,633 2001 6,245,000 59,915,000 66,160,000 0.95% 4,755 2002 3,195,000 102,445,000 105,640,000 1.41% 7,364 2003 3,150,000 100,670,000 103,820,000 1.24% 6,938 2004 3,105,000 166,635,304 169,740,304 1.85% 10,938 2005 5,925,000 164,408,511 170,333,511 1.67% 10,376 2006 5,775,000 161,464,681 167,239,681 1.46% 10,031 2007 2,625,000 142,993,361 145,618,361 1.12% 8,594 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). 1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California. Sources: City of Rancho Mirage and Wheeler's Demographic Profiles of the Coachella Valley 146 CITY OF RANCHO MIRAGE Direct and Overlapping Debt June 30, 2007 City Assessed Valuation Redevelopment Agency Incremental Valuation Total Assessed Valuation $7,081,021,607 (4,369,261,355) $2,711,760,252 City's Share of Total Debt Percentage Debt 06/30/07 Applicable' 06/30/07 OVERLAPPING TAX AND ASSESSMENT DEBT: Desert Community College District $ 63,006,886 8.942% 5,634,076 Desert Sands Unified School District General Obligation Bonds 236,666,277 3.466% 8,202,853 Desert Sands Unified School District Lease Tax Obligations 16,625,000 3.466% 576,223 Palm Springs Unified School District 201,015,000 17.157% 34,488,144 Coachella Valley Water District, Improvement District No. 54 3,565,000 6.813% 242,883 Coachella Valley Water District, Improvement District No. 58 2,345,000 5.546% 130,054 City of Rancho Mirage 1915 Act Bonds 13,770,000 100.000% 13,770,000 Coachella Valley Water District Assessment District No. 68 2,320,000 13.753% 319,070 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 63,363,303 DIRECT AND OVERLAPPING GENERAL FUND DEBT: Riverside County General Fund Obligations 641021,333 1.801% 11,580,814 Riverside County Pension Obligations 392,890,000 1.801% 7,075,949 Riverside County Board of Education Certificates of Participation 10,275,000 1.801%v 185,053 Desert Sands Unified School District Certificates of Participation 13,220,000 3.466% 458,205 Coachella Valley Water District, Improvement District No. 71 Certificates of Participation 7,485,000 13.643% 1,021,179 Coachella Valley Recreation and Park District Certificates of Participation 2,565,000 2.702% 69,306 City of Rancho Mirage Certificates of Participation 5,625,000 100.000% 5,625,000 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 1,075,081,333 $ 26,015,506 Less: Riverside County self-supporting obligations 334,652 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 25,680,854 GROSS COMBINED TOTAL DEBT' $ 89,378,809 NET COMBINED TOTAL DEBT $ 89,044,157 (1) Percentage of overlapping agency's assessed valuation located within boundaries of the city. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations Ratios to 2004-05 Assessed Valuation: Total Overlapping Tax and Assessment Debt 0.89% Ratios to Adiusted Assessed Valuation Combined Direct Debt ($5,775,000) 0.21% Gross Combined Total Debt 3.30% Net Combined Total Debt 3.28% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/07: $0 Source: California Municipal Statistics, Inc. 147 CITY OF RANCHO MIRAGE Computation of Legal Debt Margin Last Ten Fiscal Years Outstanding Less: Total Net Fiscal Tax Bond Debt Year Allocation Reserve Applicable To Legal Debt End Bonds Requirement (2) Debt Limit Limit 1998 60,645,000 16,475,404 44,169,596 861,597,483 1999 59,640,000 18,864,864 40,775,136 852,094,505 2000 67,265,000 20,472,987 46,792,013 910,737,613 2001 66,160,000 23,190,102 42,969,898 1,041,512,057 2002 105,640,000 21,519,475 84,120,525 1,120,582,721 2003 103,820,000 24,527,754 79,292,246 1,253,530,626 2004 169,740,304 26,679,901 143,060,403 1,373,125,724 2005 170,333,511 32,135,427 138,198,084 1,528,322,872 2006 167,239,681 35,842,735 131,396,946 1,716,192,783 2007 145,618,361 35,708,646 109,909,715 1,947,927,233 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City h as none). Assessed value has been used because the actu al value of taxable property is not readily available in the State of California. 2 Limited to amounts held in bond reserve funds that are legally restricted toward the repayment of specific de bt issuances. Legal Debt Legal Debt Margin as a Margin % of Limit 817,427;887 94.9% 811,319,369 95.2% 863,945,600 94.9% 998,542,159 95.9% 1,036,462,196 92.5% 1,174,238,380 93.7% 1,230,065,321 89.6% 1,390,124,788 91.0% 1,584,795,837 92.3% 1,838,017,517 94.4% 148 CITY OF RANCHO MIRAGE Pledged Revenue Coverage Library Lease and Civic Center Revenue Bonds and Redevelopment Tax Allocation Bonds Last Ten Fiscal Years Revenue Available for Debt Service Requirements Descrintion Debt Service Princinal Interest Total Coverage 2005 Library Lease Revenue Bonds FY 2005-06 370,974 150,000 220,974 370,974 100.00% FY 2006-07 388,033 150,000 238,033 388,033 100.00% 1995 Library Lease Revenue Bonds FY 1997-98 241,411 30,000 211,411 241,411 100.00% FY 1998-99 239,274 30,000 209,274 239,274 100.00% FY 1999-00 241,958 35,000 206,958 241,958 100.00% FY 2000-01 239,464 35,000 204,464 239,464 100.00% FY 2001-02 241,793 40,000 201,793 241,793 100.00% FY 2002-03 243,764 45,000 198,764 243,764 100.00% FY 2003-04 240,924 45,000 195,924 240,924 100.00% FY 2004-05 243,286 50,000 193,286 243,286 100.00% FY 2005-06 - - - - - FY 2006-07 - - - - - Civic Center Revenue Bonds FY 1997-98 330,257 80,000 250,257 330,257 100.00% FY 1998-99 329,658 85,000 244,658 329,658 100.00% FY 1999-00 328,623 90,000 238,623 328,623 100.00% FY 2000-01 327,143 95,000 232,143 327,143 100.00% FY 2001-02 - - - - - FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2006-07 - - - - - Tax Allocation Bonds FY 1997-98 9,860,404 690,000 2,567,965 3,257,965 302.66% FY 1998-99 12,364,864 890,000 2,786,925 3,676,925 336.28% FY 1999-00 14,097,987 930,000 3,079,072 4,009,072 351.65% FY 2000-01 16,945,102 975,000 3,167,970 4,142,970 409.01% FY 2001-02 18,324,475 1,575,000 4,413,736 5,988,736 305.98% FY 2002-03. 21,377,754 1,775,000 5,045,754 6,820,754 313.42% FY 2003-04 23,574,901 1,840,000 5,914,063 7,754,063 304.03% FY 2004-05 26,210,427 2,370,000 7,789,600 10,159,600 257.99% FY 2005-06 30,067,735 3,490,000 7,695,434 11,185,434 268.81% FY 2006-07 33,083,646 4,505,000 7,162,462 11,667,462 283.55% Notes: Revenue available for Library Lease Revenue Bonds consists of lease payments made by the City of Rancho Mirage to the Ran cho Mirage Joint Powers Financing A uthority. The 1995 Library Lease Revenue Bonds refinanced the 1991 Library Lease Revenue Bonds during FY 1995- 96. The bonds were refunded fully in April 2005 by the 2005 Public Facilities Lease Revenue Bonds. Civic Center Revenue Bon ds were refunded in full in July 2001. In prior years, the revenue available consisted of property tax revenues received by the Rancho Mirag e Redevolopment Agency that were used to m ake loan paymen ts to the Rancho Mirage Joint Powers Financing Authority. Source: City of Rancho Mirage 149 Fiscal pU1at1®n 1998 1999 2000 2001, 2002 2003 2005 16,4 2006 16,572 2007 16,944 00 S 0) 00 12000 10000 1,179,277,248 cum 1,233,269,040 72,785 City Population Flo LIo 1998 1999 2~ 2001 2002 2003 2004 2005 2006 2007 CITY OF RANCHO MIRAGE Principal Employers 2006 Percent of Number of Primary Total Principal Employer Employees Decription Rank Employment Eisenhower Medical Center 2145 Hospital / Clincs 1 39.44% Westin Mision Resort and Villas 980 Hotel 2 18.02% Rancho Las palmas Resort & Spa 600 Hotel 3 11.03% Moore Maintenance & Janitorial 340 Janitorial Services 4 6.25% The Home Depot 310 Home Improvement Store 5 5.70% The Lodge at Rancho Mirage 250 Hotel 6 4.60% Cheesecake Factory 238 Restaurant 7 4.38% Mission Hills Country Club 225 Country Club 8 4.14% Regency Homes 200 Developer 9 3.68% Betty Ford Center 150 Rehabilitation Center 10 2.76% 2007 Data not available at time of publication Source: Wheeler's Desert Business Data 151 CITY OF RANCHO MIRAGE Full-time and Part-time City Employees by Function Last Ten Fiscal Years Full-Time and Part-time Employees as of June 30 Function 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 General Fund City Clerk 1.00 1.00 1.00 1.00 1.00 5.00 6.00 6.00 5.00 6.00 City Manager/Management Services 8.00 7.00 7.00 5.00 6.00 7.00 7.00 8.00 11.00 12.00 City Attorney 1 1.00 2.00 2.00 2.00 2.00 2.00 - - - - Administration 3.00 3.00 3.00 5.00 5.00 2.00 2.00 2.00 2.00 1.00 Finance 4.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Information Services 4.00 4.00 4.00 4.00 4.00 2.00 2.00 2.00 2.00 2.00 Planning 7.00 7.00 7.00 7.50 8.50 8.50 9.50 9.00 9.00 9.00 Building 4.00 5.00 5.00 5.50 5.50 6.00 6.00 6.50 5.00 5.00 Code Compliance 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Engineering 7.00 8.00 8.00 8.00 9.00 9.00 9.00 9.00 10.00 10.00 Street Maintenance 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Buildings & Grounds 3.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 Emergency Services - - - - - - - - 1.00 1.00 General Government - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Tourism & Marketing - - - - - - - - - 1.00 GENERAL FUND SUB-TOTAL 50.00 55.00 55.00 56.00 59.00 59.50 59.50 60.50 63.00 66.00 Parkland Fund 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Library Fund 5.00 5.00 5.00 6.00 7.00 8.00 8.00 8.00 11.00 11.00 Library Fund (full-time equivalents) 2 4.29 4.58 4.97 5.76 6.60 7.40 7.92 8.25 4.92 14.61 Redevelopment Agency - 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 Housing Authority 4.00 4.00 4.00 4.00 4.00 4.50 4.50 4.50 5.00 5.00 TOTAL 65.29 7L58 71.97 74.76 79.60 83.40 83.92 85.25 87.92 100.61 1 Attorney services have been contracted out since FY 2004 2 The Library utilizes several part-time employees whose hours, when combined, constitute full-time equivalents Note: Police and fire services are provided by the County of Riverside. Source: City of Rancho Mirage 152 153 CITY OF RANCHO MIRAGE Operating Indicators by Fuction Last Ten Fiscal Years 1998 Public works: Permits issued: Grading 72.0 Encroachment 150.0 Pool drainage - Transportation - Miscellaneous 85.0 Maintenance of: Miles of streets 71.0 Miles of bike paths 12.8 Number of major intersections 25.0 Number of traffic signals & safety lighting 37.0 Number of traffic signs 1,751.0 Number of street lights 111.0 Parks and recreation: Number of parks 3.0 Total acreage 10.1 Library Items checked out 198,434 Patron visits to the library 170,473 Reference questions 36,366 Holds/reserves placed NA Total website pageviews-not consistently recorc NA Library cardholders as of June 14,052 Community Development Number of building permits issued 1,426 Estimated valuation of building permits issued $ 91,673,900 NA = Not available Source: City of Rancho Mirage 1999 2000 2001 111.0 100.0 118.0 252.0 323.0 346.0 176.0 156.0 175.0 71.0 71.0 72.5 13.6 14.2 18.7 25.0 25.0 25.0 39.0 40.0 40.0 1,787.0 1,863.0 1,965.0 111.0 111.0 176.0 3.0 5.0 5.0 10.1 12.6 12.6 230,676 250,532 291,828 187,083 194,682 206,788 40,268 41,986 44,312 NA NA NA NA 37,072 30,475 15,156 15,938 16,601 1,534 1,633 1,798 153,107,257 137,526,709 169,409,356 154 2002 2003 2004 2005 2006 2007 158.0 173.0 131.0 112.0 91.0 80.0 257.0 291.0 292.0 236.0 223.0 240.0 - - - - 5.0 18.0 - 9.0 80.0 101.0 99.0 89.0 187.0 196.0 74.0 56.0 58.0 23.0 73.5 74.0 73.5 73.5 73.5 73.8 19.9 20.9 21.3 21.9 21.9 22.3 25.0 26.0 26.0 26.0 26.0 26.0 42.0 47.0 48.0 50.0 54.0 52.0 2,036.0 2,051.0 2,074.0 2,091.0 2,099.0 2,113.0 172.0 192.0 196.0 198.0 202.0 206.0 5.0 5.0 5.0 5.0 5.0 5.0 12.6 12.6 12.6 12.6 12.6 12.6 318,053 348,021 368,626 378,363 389,729 481,604 211,210 221,513 235,905 236,571 279,769 320,551 44,966 44,613 44,711 45,318 55,362 63,299 NA 5,357 22,943 25,746 30,611 40,395 15,397 21,874 966,986 602,116 364,092 660,143 17,172 17,113 19,094 19,518 24,250 29,520 2,090 2,232 2,445 2,387 1,525 1,193 199,039,605 203,571,320 232,925,182 165,034,703 91,031,942 128,161,385 155 CITY OF RANCHO MIRAGE Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Public works: Miles of Public Streets 71.0 71.0 71.0 72.5 73.5 74.0 73.5 73.5 73.5 73.8 Miles of Public Bike Paths 12.8 13.6 14.2 18.7 19.9 20.9 21.3 21.9 21.9 22.3 Number of Major Intersections 25.0 25.0 25.0 25.0 25.0 26.0 26.0 26.0 26.0 26.0 Number of Traffic Signals and 37.0 39.0 40.0 4.0.0 42.0 47.0 48.0 50.0 54.0 52.0 Safety Lighting Number of traffic signs 1,751.0 1,787.0 1,863.0 1,965.0 2,036.0 2,051.0 2,074.0 2,091.0 2,099.0 2,113.0 Number of street lights 111.0 111.0 111.0 176.0 172.0 192.0 196.0 198.0 202.0 206.0 Parks and recreation: Number of Parks 3.0 3.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Total Acreage 10.1 10.1 12.6 12.6 12.6 12.6 12.6 12.6 12.6 12.6 Buildings: Civic Center 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Library 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Corporation Yard 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Housing Authority Senior Housing Projects - 2.0 2.0 2.0 1.0 1.0 1.0 2.0 3.0 3.0 Source: City of Rancho Mirage 156