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
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Fiscal Year Ended June 30
vi
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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