HomeMy Public PortalAboutCAFR Year Ended June 30, 2013 (2)CITY OF RANCHO MIRAGE, CALIFORNIA
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
prepared by:
THE DEPARTMENT OF
ADMINISTRATIVE SERVICES
FINANCE DIVISION
Kim Malcolm -Valente, Director of Administrative Services
Isaiah Hagerman, Finance Director
YEAR ENDED JUNE 30. 2013
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
CITY OF RANCHO MIRAGE, CALIFORNIA
CITY OF RANCHO MIRAGE
Comprehensive Annual Financial Report
Year Ended June 30, 2013
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION:
Letter of Transmittal
i
Organizational Chart
vi
Directory of Officials
vii
Certificate of Achievement for Excellence in Financing Reporting (GFOA)
viii
FINANCIAL SECTION:
Independent Auditors' Report
1
Management's Discussion and Analysis
(Required Supplementary Information)
4
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Position
13
Statement of Activities
14
Fund Financial Statements: Government Funds:
Balance Sheet
15
Reconciliation of the Balance Sheet— Statement of Net Position
17
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
Fiduciary Funds:
Statement of Fiduciary Net Position
21
Statement of Changes in Fiduciary Net position
22
Notes to the Financial Statements
23
Required Supplementary Information
Schedule of Funding Progress – Other Post Employment Benefits
55
100& e]0;A1. 0:111011;axeN
Comprehensive Annual Financial Report
Year Ended June 30, 2013
TABLE OF CONTENTS (Continued)
Note to Required Supplementary Information 66
Supplementary Schedules
Non -Major Governmental Funds:
Combining Balance Sheet 67
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 68
Non -Major Special Revenue Funds:
Combining Balance Sheet 69
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 70
Budgetary Comparison Schedules:
Page
Budgetary Comparison Schedules:
74
General Fund
56
Library Special Revenue Fund
62
Fire Tax Special Revenue Fund
64
Housing Authority Special Revenue Fund
65
Note to Required Supplementary Information 66
Supplementary Schedules
Non -Major Governmental Funds:
Combining Balance Sheet 67
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 68
Non -Major Special Revenue Funds:
Combining Balance Sheet 69
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 70
Budgetary Comparison Schedules:
Landscape and Lighting Districts Special Revenue Fund
74
Parkland Special Revenue Fund
75
Library Foundation Special Revenue Fund
76
Gas Tax Special Revenue Fund
77
AB939 Recycle Programs Special Revenue Fund
78
Transportation Measure A Special Revenue Fund
79
Air Pollution Reduction Special Revenue Fund
80
Rent Control Special Revenue Fund
81
Storm Water Quality Special Revenue Fund
82
Debt Service Funds:
Non -Major Combining Balance Sheet 84
Non -Major Combining Statement of Revenues, Expenditures and Changes in Fund
Balance 85
Capital Projects Funds:
Non -Major Combining Balance Sheet 87
Non -Major Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 88
Budgetary Comparison Schedules
Development Fees Capital Projects Funds 89
Agency Funds:
Combining Statement of Changes in Fiduciary Position and Liabilities 90
100& e]0;al.ctj:c11011;axeDI
Comprehensive Annual Financial Report
Year ended June 30,
TABLE OF CONTENTS (Continued)
Page
STATISTICAL SECTION:
•
Net Position by Component, Last Ten Fiscal Years
93
•
Changes in Net Position, Last Ten Fiscal Years
94
•
Fund Balances of Governmental Funds, Last Ten Fiscal Years
95
•
Changes in Fund Balances of Governmental Funds, Last Ten Fiscal Years
96
•
Major Revenue Sources - Governmental Funds, Last Ten Fiscal Years
97
•
Assessed and Estimated Value of Taxable Property, Last Ten Fiscal Years
98
•
Property Tax Rates Direct and Overlapping Governments, Last Ten Fiscal Years
100
•
Principal Property Tax Payers, Current Year and Ten Years Ago
101
•
Property Tax Levies and Collections, Last Ten Fiscal Years
102
•
Ratios of Outstanding Debt by Type, Last Ten Fiscal Years
103
•
Ratio of General Bonded Debt Outstanding, Last Ten Fiscal Years
104
•
Direct and Overlapping Debt
105
•
Computation of Legal Debt Margin, Last Ten Fiscal Years
106
•
Pledged Revenue Coverage, Last Ten Fiscal Years
107
•
Demographic and Economic Statistics, Last Ten Calendar Years
108
•
Principal Employers
109
•
Full and Part-time Employees by Function, Last Ten Fiscal Years
110
•
Operating Indicators by Function, Last Ten Fiscal Years
111
•
Capital Assets by Function, Last Ten Fiscal Years
113
Former Redevelopment Agency Long-term Debt Information 114
CITY OF kROPCO MIRAGE
0
OFFICE OF THE CITY MANAGER
Randal K. Bynder
June 4, 2014
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, 2013. 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 Council members, 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.
Vavrinek, Trine, Day & Co., Certified Public Accountants, has issued an unmodified ("clean") opinion on
the City of Rancho Mirage's financial statements for the fiscal year ended June 30, 2013. 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 17,745 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 Palm Springs Valley.
The City operates under the Council -Manager form of government. The five City Council members are
elected to four-year terms in alternate slates every two years. Most recently, an election was held on
April 8, 2014. The Mayor is appointed by the City Council for a one-year period on a rotating basis.
Pursuant to the Municipal Code, the City Council member with the longest continuous service on the City
Council without having served as Mayor shall be appointed Mayor. The Mayor presides over City
Council meetings and represents the City at many public functions. The City Council also serves as the
Board of Directors of the Successor Agency to the former 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 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 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's annual operating and capital improvements budgets are adopted by resolutions for the fiscal
year that begin July 1". Separate resolutions are adopted by the City Council and the Boards of Directors
of the Library, Community Services District, Joint Powers Financing Authority and the Housing
Authority for the specific Funds under their supervision.
The budget document is categorized according to the City of Rancho Mirage's major entities - the City
and the Housing Authority. They are further subdivided into organizational units referred to as
Departments/Divisions 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 by 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
Rancho Mirage, like every other municipality in the State and in the nation, has been adversely affected
by the slow economic recovery. Rancho Mirage is weathering the situation better than most due to our
historic commitment to fiscal responsibility and the City Council's vision to attract new revenue
generating businesses while maintaining the City's well known reputation for high quality residential
neighborhoods. Rancho Mirage has and will continue to have an international reputation as a destination
resort and medical and research center and will continue to be recognized for its ambience and the unique
lifestyle it provides and where its residents enjoy a variety of cultural and recreational opportunities.
Any discussion of Rancho Mirage finances must include 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 former 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 approximately $1.4 million or 7% of its total revenue from property tax.
As we all know, redevelopment activity in California effectively ceased January 31, 2012. This
unfortunate action by the State removes a major "economic engine" for development and construction of
infrastructure and affordable housing not only in Rancho Mirage but statewide as well. The former
11
Redevelopment Agency was instrumental in constructing much of the infrastructure and facilities such as
the Rancho Mirage Library that have made Rancho Mirage the outstanding City that it is. The City has
assumed the role of Successor Agency effective February 1, 2012 with responsibilities to oversee
liquidation of the assets and liabilities of the former Redevelopment Agency.
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 — Omni Rancho
Las Palmas Resort and Spa, the Westin Mission Hills and Agua Caliente Casino oResorto Spa -
Eisenhower Medical Center, the Betty Ford Center, Annenberg Sunnylands Estate 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 land uses, in
conjunction with the strong residential base, have allowed Rancho Mirage to become a prominent
community within the Palm Springs Valley.
Rancho Mirage was one of the first communities in the Palm Springs 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 revenue producing
development types. Rancho Mirage will also benefit from the long anticipated re -opening of the Ritz-
Carlton Hotel, which is scheduled for May 15, 2014.
Hotels, Sales Tax, Investments — The Big Three
Together, the transient occupancy tax, sales tax and interest revenue (approximately $10.6 million) made
up approximately 53% of the General Fund's total revenue in FY 2012-13. Economic conditions that
affect these City revenues are those factors that influence tourism, residential growth, consumer spending
and investment returns. As previously noted, the current slow nationwide economic recovery has had a
negative impact on the City's investment returns.
Regarding transient occupancy tax, 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 Palm Springs Valley with enhanced recognition by leisure and group
resort travelers throughout the world. This position will be further strengthened once the Ritz-Carlton
Hotel opens on May 15, 2014. The project includes a complete renovation of the existing 244 -room
resort and construction of 18 spa suites plus future construction of 54 T -wing units, 57 hotel villas, and 25
tennis villas once the housing market recovers. This newly renovated resort along with the Omni Rancho
Las Palmas Resort and Spa, the Westin Mission Hills Resort and Spa and the Agua Caliente
Casino oResorto Spa will keep Rancho Mirage firmly established in a competitive position within the
Palm Springs Valley for recognition by leisure and group resort travelers throughout the world.
The Highway 111 corridor through Rancho Mirage is a 41/2 -mile -long major thoroughfare, with daily
traffic exceeding 65,000 vehicles. It is recognized as the circulation and commercial axis of the Palm
Springs 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 corners of the Palm Springs Valley, Southern California and beyond enjoy the many amenities
offered at The River. Coupled with the pending successful redevelopment of the Rancho Las Palmas
ui
Shopping Center, the resulting ripple effect along Highway 111 has transformed this area into a unique
and vibrant commercial "downtown" for the community.
Long -Term Financial Planning
The City's General Plan is the community's comprehensive and long-term view of its future; it is a
blueprint for the City's growth and development. The City Council and the Planning Commission use the
goals and policies of the General Plan as a basis from which to make land use decisions. The General
Plan is considered "long-term" since it looks 15 years or more into the future and projects conditions and
needs as a basis for determining long-term objectives and policies for day-to-day decision making.
A comprehensive update to the General Plan was completed in 2005. Prior to 2005, the last
comprehensive update was completed in 1997. The update in 2005 was completed to keep pace with the
changing conditions in Rancho Mirage and the Coachella Valley. The update addressed maintaining and
enhancing the livability of Rancho Mirage's neighborhoods, planning for an optimal balance of land uses
while enhancing economic opportunities within the City and protecting the City's unique natural setting.
The update process was a collaborative effort among City staff, the City Council, professional planners
and the citizens and stakeholders of Rancho Mirage. With City Council concurrence, I intend to embark
on another comprehensive General Plan update over the next few years.
Other ways in which the City ensures that its long-range goals are met are through a wide variety of
Council Subcommittees. Each subcommittee is comprised of two Council members, one or more staff
and, in some cases, citizens. Following are a few examples of the current nineteen subcommittees along
with their assignments.
o Audit/Budget Subcommittee — Review and analyze financial information, audit results, budgets and
all financial policies and procedures.
o Commercial Development Subcommittee — Review proposed and recently submitted commercial
and other non-residential development projects, issues and topics.
o Eisenhower Medical Center Subcommittee — Work cooperatively with representatives of
Eisenhower Medical Center to ensure an effective partnership between the Medical Center and the
City.
o Tourism, Marketing and Special Events Subcommittee — Develop a theme for Rancho Mirage
tourism, create an effective and user-friendly format to market Rancho Mirage tourism opportunities
via the Internet, pursue group marketing of Rancho Mirage tourism; and promote Rancho Mirage
hotels as a place to hold conferences, business meetings and other special events.
o Chamber of Commerce Subcommittee — Coordinate with members of the Board of Directors of the
Chamber of Commerce and the Chamber's Executive Director related to the services provided to the
City by the Chamber.
o Section 19 Specific Plan Subcommittee — Meet with staff, consultants and invited property owners
for the development and implementation of a Specific Plan for Section 19. Section 19 is
approximately 268 acres located on the northeast corner of Dinah Shore Drive and Bob Hope Drive
near the Agua Caliente CasinooResorto Spa.
o Section 31 Subcommittee — Formed to discuss terms and conditions of zoning and potentially a
development agreement between the City and property owners in Section 31. Section 31 is
approximately 640 acres located south of section 30 and is bordered by Bob Hope Drive to the west,
Gerald Ford Drive to the north, Monterey Avenue to the east and Frank Sinatra Drive to the south.
iv
o Sphere of Influence Subcommittee — Review and analyze information and data related to the City's
Sphere of Influence (SOI), meet with property owners, tribal representatives and prospective
developers.
Another way the City ensures its future financial health is its commitment to be economically prudent and
sound. Perhaps the best indication of the financial stability of the City is the amount of fund balance. The
City Council's Audit/Budget Subcommittee consisting of two City Council members drafted the City's
Fund Balance Policy in accordance with Governmental Accounting Standards Board (GASB) Statement
No. 54 effective July 1, 2010. The Fund Balance Policy incorporates the long-term view of the City's
resources by adopting reserves. The City Council reviews the reserves annually, which allows them to act
quickly when events, whether local, state or nationwide, occur that change or may change the City's
economic stability. The following fund balance classifications are now incorporated into the financial
statements: nonspendable, restricted, committed, assigned and unassigned. The footnotes to the financial
statements provide detailed information over the various fund balance classifications.
AWARDSAAD 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, 2012. This is the
twenty-second 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.
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, economic and land use policy and direction. I also thank City
staff members with special appreciation to the Finance Division of the Department of Administrative
Services for their continued effort to provide accurate financial data to City management and to V avrinek,
Trine, Day & Co., the City's independent auditors, who assisted and contributed to the preparation of this
report.
Respectfully submitted,
Randal K. Bynder
City Manager
CITY OF ROCH-0 MIRAGE
ffv2 ORGANIZATION CHART
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Iris Smotrich
G. Dana Hobart
Richard Kite
Charles Townsend
Ted Weill
Randal K Bynder
Steven B. Quintanilla
Cindy Scott
Bruce B. Harry, Jr.
David Bryant
Kim Malcolm -Valente
Isaiah Hagerman
CITY OF R.-INCH-0 MIRAGE
eo
DIRECTORY OF OFFICIALS
June 30, 2013
CITY COUNCIL
Mayor
Mayor Pro Tem
Councilmember
Councilmember
Councilmember
ADMINISTRATION
City Manager/Executive Director of the
Redevelopment Agency Successor Agency
City Attorney
City Clerk
Director of Public Works
Library Director
Director of Administrative Services
vii
Finance Director
Government Finance Officers Association
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, 2012
Executive Director/CEO
1"A.2,wl
Vadnek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members of City Council
City of Rancho Mirage, California
Report on the Financial Statements
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, (City) as of and for the year
ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the City's basic
financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
1
Mailing Address: P. 0. Box 20439 Riverside, CA 92516
6370 Magnolia Avenue, Suite 330 Riverside, CA 92506 Tel 951.367.3000 Fax: 951.367.3010 www.vtdopa.com
FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO
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 as of June 30, 2013, and the respective change in financial position thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the City adopted Governrnental Accounting Standards Board
(GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position, as of July 1, 2012. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, schedule of funding progress and budgetary comparison schedules on pages 4 through 12,
55, and 56 through 66, respectively, be presented to supplement the basic financial statements. Such information,
although not part of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying major capital projects fund budgetary
comparison schedules, and the combining and individual nonmajor fund financial statements and schedules
(supplementary information) and the other information such as the introductory, statistical, and Former
Redevelopment Agency Long-term Debt Information sections (other information) are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The supplementary information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the supplementary information is fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
The other information has not been subjected to the auditing procedures applied in the audit of the basic financial
statements, and accordingly, we do not express an opinion or provide any assurance on it.
2
Other Reporting Required by GovernmentAuditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 3, 2014, on our
consideration of the City's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards in considering the
City's internal control over financial reporting and compliance.
awa
Riverside, California[
June 3, 2014
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, 2013. Please read it in
conjunction with the accompanying transmittal letter and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
• The total assets of the City exceeded its total liabilities at the close of the fiscal year 2012-13 by
$284,197,667 (net position). Of this amount, $74,622,221 is unrestricted net position, $37,842,120
is restricted for specific purposes and $171,733,326 is net investment in capital assets. The City's
net position from governmental activities decreased from $287.6 million to $284.2 million or -2%
mostly as a result of the Housing Authority not receiving the 20% set-aside as a result of the RDA
dissolution and a negative fair market value adjustment.
• The City's total long-term debt decreased by $406,116 or -4.5% compared to the prior year. The
decrease mostly consisted of compensated absences.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position, which
identifies the City's assets, liabilities and net position, 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 Position 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 Position 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 position and changes in them. The City's net position, 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 position indicate whether its financial
health is improving or deteriorating. However, consideration should also be given to other non-financial
factors, such as changes in the economy that may cause a decrease in consumer spending. The City's
net position decreased this year by approximately $3.4 million from June 30, 2012 to June 30, 2013,
primarily due to the following: the Housing Authority not receiving the 20% set-aside as a result of the
RDA dissolution and a negative fair market value adjustment.
4
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, and Housing Authority, 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 results in the recording of an other financing source in
governmental funds and as principal and interest payments are made, an 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 Position and the Statement of Activities) and governmental funds is described in a
reconciliation following the balance sheet of the governmental funds.
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 Net
Position. 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 private -purpose trust fund is used to account for
activity related to the dissolution of the former RDA. The accounting used for fiduciary funds is the
same as the Statement of Net Position and Statement of Activities.
5
THE CITY AS A WHOLE
The City's net position at June 30, 2013 was approximately $284.2 million as shown in Table 1. Table 2
shows changes in net position of approximately $3.4 million due to the reasons previously listed.
Table 1
Net Position
As of June 30, 2013 and 2012
Current and other assets
Capital assets
Total Assets
Long-term debt outstanding
Other liabilities
Total Liabilities
Net position:
Net investment in capital
assets
Restricted
Unrestricted
Total Net Position
Governmental Activities
2013
$ 122,142,305
174,000,722
296,143,027
2012
$127,148,705
176,195,744
303,344,449
8,571,350 8,977,466
3,374,010 6,717,956
11,945,360 15,695,422
171,733,326 175,897,018
37,842,120 10,251,089
74,622,221 101, 500,924
$284,197,667 $287,649,031
The other liabilities decrease of $3.4 million is primarily due to a decrease of $2.4 million in Due to
Other Governments and regularly scheduled debt service payments. At June 30, 2012 the Housing
Authority had a disallowed transfer as a result of the RDA dissolution. This amount was paid by the
Housing Authority in Fiscal Year 2012-13.
The City's Net Position is made up of three components: Net Investment in Capital Assets, Restricted
and Unrestricted. Unrestricted net position, the part of net position that can be used to finance day-to-
day operations, account for approximately 26% of the total net position.
10
Table 2
Changes in Net Position
For the Year Ended June 30, 2013 and 2012
Governmental Activities
2013 2012
Revenues
Program Revenues
Charges for services $3,797,042 $3,685,002
Operating grants and contributions 864,205 2,098,306
Capital and grants contributions 936,367 1,448,786
Taxes
Property Taxes (Net of Pass -Through
Payments and SERAF)
4,571,549
15,227,258
Transient occupancy taxes
5,606,679
5,356,152
Sales tax
3,882,102
3,970,239
Franchise taxes
1,244,971
1,239,565
Motor Vehicle hi -Lieu tax
7,483
17,612
Library and fire services tax
10,039,639
7,702,636
Interest income, net of change in fair value
154,797
2,371,476
Other
832,364
483,148
Total Revenues
$31,937,198
$43,600,180
Expenses
General government
Public safety
Public works
Cultural and recreation
Interest on long-term debt and
Other charges
Total Expenses
Extraordinary gain- Dissolution of
redevelopment agency
13,496,119
11,617,269
6,388,990
3,734,569
16,759,819
11,171,851
8,848,181
3,911,881
151,615 4,690,367
35,388,562 45,382,099
98,551,208
Increase (decrease) in net position $ (3,451,364) $96,769,289
7
Summarized information for fiscal year 2013 is as follows:
Interest
Income&
Sources of Revenue
Program
Other
Revenues
3%
18%
Taxes
■ Property Taxes
■ Transient Occupancy Tax
■ Sales Tax
■ Other
Functional Expenses
Public Safety
33% Public Works
low 18%
General
Government
38%
Interest on Long -
Term Debt&
Other Charges
0%
The City's total governmental activities revenues decreased from $43,600,180 to $31,937,198. Taxes,
which include property taxes, transient occupancy tax, sales tax, franchise tax, and motor vehicle in -lieu
tax accounts for approximately 48% of the total revenues for the current year. Other major revenue
sources include library and fire services tax at 31% and program revenues at 18%.
The increase of $2.3 million in Library and Fire Services tax was a result of the dissolution of the RDA.
The Library and Fire Services Tax received one time payments as a result of the Due Diligence
Reviews.
The decrease of $2.2 million in interest income was a result of the fair market value adjustment.
The overall net decrease of approximately $11.6 million is due to a reduction in property tax of $10.6
million resulting from the dissolution of the former Redevelopment Agency in 2012.
Total cost of all governmental activities was $35,388,562 compared to $45,382,099 for last year. The
decrease of $9.9 million was primarily the result of the dissolution of the RDA and a related decrease in
debt service. Fiscal Year 2012-13 was the first full fiscal year without the former RDA.
Governmental 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.
General Government
Public Safety
Public Works
Cultural and recreation
Interest on long-term debt
& other charges
Totals
Table 3
Net Cost of Governmental Activities
As of June 30, 2013 and 2012
2013
Total Cost of
Services
$13,469,119
11,617,269
6,388,990
3,734,569
Net Cost of
Services
$10,006,021
11,457,217
5,120,857
3,058,175
2012
Total Cost of
Services
$16,759,819
11,171,851
8,848,181
3,911,881
Net Cost of
Services
$12,632,726
10,321,999
7,414,944
3,089,969
151,615 148,678 4,690,367 4,690,367
5,361,562 $29,790,948 $45,382,099 $38,150,005
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
At year-end the City's Governmental Funds reported a combined fund balance of $118,392,902. This
includes the General Fund's total fund balance of $80,152,789 of which $69,050,503 is committed,
$9,644,859 is unassigned and $1,457,427 is in non -spendable form. The General Fund's fund balance
decreased by $1,157,811 due primarily to a negative fair market value adjustment of $1.2 million.
9
The General Fund's financial statements include the financial activities of the License Tax Fund, the two
COPS (Citizens Option for Public Safety) Funds, the Agua Caliente Band of Cahuilla Indians (ACBCI)
Fee Fund, traffic safety fund, community service district fund and community facilities district fund.
The General Fund's fund balance includes committed fund balance for prudent reserve, disaster
recovery, capital projects, Library, Ritz Spa Suite, Section 19 Water and economic development reserve.
For more information refer to footnote #15.
Other major funds:
• The Library Fund's fund balance decreased slightly to $2,805,315 from $2,726,556. It has always
been known that, with the opening of the new and larger Library in January 2006, the General Fund
would eventually have to provide an operating subsidy to the Library because expenditures would
exceed taxes for the library. Currently it is anticipated that the operating subsidy will begin in
FY 2018-19.
• The Fire Tax Fund's total fund balance increased from $432,169 to $728,343 due to transfers in of
$904,510 primarily from the general fund.
• The Housing Authority's total fund balance decreased from $18,222,249 to $16,164,875 primarily
due to the loss of the 20% set aside from the former RDA.
General Fund Budgetary Highlights
Revenues: As the economy continues to stabilize, few mid -year budget adjustments were needed to be
approved by Council. See the Budgetary Comparison Schedule for details. Final year-end expenditures
exceeded revenues and transfers by approximately $2.3 million. The primary reason was the budgeted
$2.1 million for various capital projects.
Expenditures: Various expenditure budget adjustments were approved by Council at mid -year and
year-end. See the Budgetary Comparison Schedule as identified in the table of contents. Actual
expenditures and transfers out of were $1,762,972 less than the final budget primarily due to budgeted
capital improvement projects not being completed by the end of the fiscal year (approximately $1
million) and reduced expenditures in all General Fund divisions (approximately $700,000).
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of Fiscal Year 2013, the City had $174 million invested in a broad range of capital assets,
including land, buildings, park facilities, streets, traffic signals, vehicles and equipment. This amount
represents a net decrease (including additions and deletions) of approximately $2.2 million over last
year. More detailed information regarding the activity for the year ended June 30, 2013 can be found in
the notes to the financial statements section (note 6).
10
Land & Rights of way
Buildings and improvements
Furniture & Fixtures
Equipment
Infrastructure
Work -in -Progress
Table 4
Capital Assets at Year -End
(Net of Depreciation)
As of June 30, 2013 and 2012
Government Activities
2013
$ 39,187,508
50,606,631
922,528
969,895
75,164,048
7,150,112
2012
$ 39,187,508
51,720,886
990,150
761,464
77,700,296
5,835,440
Totals $ 174,000,722 $ 176,195,744
11
Debt
At year-end the City's governmental activities had $8,571,350 in bonds, loans, claims payable, ACBCI
liability, deferrals on refunding and compensated absences compared to $8,977,466 at the prior year-
end. The decrease of approximately $406,000 is primarily due to the retirement of $185,000 in revenue
bonds. There was also a decrease of $100,422 in compensated absences. More detailed information can
be found in note 7 to the basic financial statements.
Table 5
Outstanding Debt at Year -End
As of June 30, 2013 and 2012
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Current economic projections continue to project gradual improvement in economic growth. California
continues to struggle with high unemployment rates and slight projected growth in sales tax.
The City closed the fiscal year with healthy general fund balance of $80,152,789 and decrease of
$1,157,810 from the prior year. The General Fund budget for fiscal year 2013-14 has budgeted
operating revenues of $21,585,306 and operating expenditures of $21,410,042. The status of revenues
and expenditures will also be reviewed during the mid -year budget review in February 2014. The City
has committed fund balance for several large scale capital projects over the next few years.
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 or visit the City's website at www.ranchomirageca.gov.
12
Government Activities
2013
2012
Revenue Bonds
$ 4,605,000 $
4,790,000
ARRA- DOE Loan
278,743
298,726
Claims Payable
375,506
434,255
ACBCI Liability
1,988,653
2,015,840
Compensated Absences
1,072,295
1,172,718
Deferrals on Refunding
and (Discounts)/Premiums
251,153
265,927
Totals
$ 8,571,350 $
8,977,466
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Current economic projections continue to project gradual improvement in economic growth. California
continues to struggle with high unemployment rates and slight projected growth in sales tax.
The City closed the fiscal year with healthy general fund balance of $80,152,789 and decrease of
$1,157,810 from the prior year. The General Fund budget for fiscal year 2013-14 has budgeted
operating revenues of $21,585,306 and operating expenditures of $21,410,042. The status of revenues
and expenditures will also be reviewed during the mid -year budget review in February 2014. The City
has committed fund balance for several large scale capital projects over the next few years.
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 or visit the City's website at www.ranchomirageca.gov.
12
CITY OF RANCHO MIRAGE
STATEMENT OF NET POSITION
JUNE 30, 2013
Assets:
Cash and investments (note 2)
Cash and investments with fiscal agent (note 2)
Receivables:
Interest
Accounts
Loans
Due from other governments
Prepaid items
Advances to RDA Successor Agency (note 4)
Deferred cost of issuance
Capital assets (note 6):
Non -depreciable capital assets
Depreciable capital assets
Accumulated depreciation
Total assets
Liablities:
Accounts payable
Accrued salaries and benefits
Accrued interest payable
Due to other governments
Deposits payable
Long-term liabilities (note 7):
Due within one year
Due in more than one year
Total liabilities
Net position:
Net investment in capital assets
Restricted for:
Public safety
Public works
Cultural and recreation
Affordable housing
Unrestricted
Total net position
See accompanying notes to basic financial statements.
13
Governmental
Activities
$ 102,800,428
4,138,157
14,562
565,721
3,156, 699
1,610, 889
2,237
9,666,379
187,233
46,337,620
200,034,449
(72,371,347)
296,143, 027
3,073,617
200,979
49,694
244
49,476
528,922
8,042,428
11,945,360
171,733,326
817,810
12, 553,111
8,306,324
16,164, 875
74,622,221
$ 284,197,667
CITY OF RANCHO MIRAGE
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2013
Charges for
Expenses Services
Program Revenues
Operating
Capital
Grants and
Grants and
Contributions
Contributions
Net (Expense)
Revenue and
Changes in
Net Position
Total
Program Governmental
Revenues Activities
Governmental activities:
General government
$ (13,496,119) $
2,789,596 $
629,062 $
44,253
$ 3,462,911
$ (10,033,208)
Public safety
(11,617,269)
133,530
26,522
-
160,052
(11,457,217)
Public works
(6,388,990)
378,281
46,375
870,664
1,295,320
(5,093,670)
Cultural and recreation
(3,734,569)
495,635
162,246
21,450
679,331
(3,055,238)
Interest on long-term debt
and other charges
(151,615)
(151,615)
Total governmental activities$
(35,388,562) $
3,797,042 $
864,205 $
936,367
$ 5,597,614
(29,790,948)
General revenues:
Taxes:
Property taxes
Transient occupancy taxes
Sales taxes
Franchise taxes
Motor vehicle in lieu tax, unrestricted intergovernmental
Library and fire services tax
Interest income, net of increase (decrease) in fair value
Other
Total general revenues
Change in net position
Net position at beginning of year, as restated
Net position at end of year
See accompanying notes to basic financial statements.
14
4,571,549
5,606,679
3,882,102
1,244,971
7,483
10,039,639
154,797
832,364
26,339,584
(3,451,364)
287,649,031
$ 284,197,667
CITY OF RANCHO MIRAGE
BALANCESHEET
GOVERNMENTAL FUNDS
JUNE 30, 2013
Liabilities
Liabilities:
Accounts payable
$ 1,798,981 $
32,611 $ 943,732 $
Special Revenue Funds
Accrued salaries and benefits
128,598
59,261 -
10,178
Due to other governments
Housing
208 -
General
Library
Fire Tax
Authority
-
Fund
Fund
Fund
Fund
Assets
-
77,104 160,750
-
Total liabilities
Cash and investments
$ 75,628,715
$ 2,864,811
$ 1,494,363
$ 4,855,159
Cash and investments with
fiscal agent
3,639,677
-
-
-
Receivables:
Interest
11,257
133
8
665
Accounts
476,777
10,638
-
-
Loans
1,455,190
-
-
1,701,509
Due from other governments
922,519
106,012
315,941
-
Due from other funds
-
4,840
22,513
-
Advances to RDA Successor Agency
-
-
-
9,666,379
Prepaid items
2,237
-
-
-
Total assets
$ 82,136,372
$ 2,986,434
$ 1,832,825
$ 16,223,712
Liabilities
Liabilities:
Accounts payable
$ 1,798,981 $
32,611 $ 943,732 $
43,248
Accrued salaries and benefits
128,598
59,261 -
10,178
Due to other governments
36
208 -
-
Due to other funds
27,353
- -
-
Deposits payable
28,615
11,935 -
5,411
Deferred revenue
-
77,104 160,750
-
Total liabilities
1,983,583
181,119 1,104,482
58,837
Fund balances
Non -spendable 1,457,427 - - -
Restdcted - 2,805,315 728,343 16,164,875
Committed 69,050,503 - - -
Unassigned 9,644,859 - - -
Total fund balance 80,152,789 2,805,315 728,343 16,164,875
Total liabilities and fund
balances $ 82,136,372 $ 2,986,434 $ 1,832,825 $ 16,223,712
See accompanying notes to basic financial statements.
15
Non major Total
Governmental Governmental
Funds Funds
$ 17,957,380 $ 102,800,428
498,480 4,138,157
2,499
14,562
78,306
565,721
-
3,156,699
266,417
1,610,889
-
27,353
-
9,666,379
-
2,237
$ 18,803,082 $
121,982,425
$ 255,045 $
3,073,617
2,942
200,979
-
244
-
27,353
3,515
49,476
-
237,854
261,502
3,589,523
- 1,457,427
18,541,580 38,240,113
- 69,050,503
- 9,644,859
18,541,580 118,392,902
$ 18,803,082 $ 121,982,425
16
CITY OF RANCHO MIRAGE
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2013
Fund balances of governmental funds $ 118,392,902
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets net of related accumulated depreciation have not been included
as financial resources in governmental fund activity:
Non -depreciable capital assets 46,337,620
Depreciable capital assets 200,034,449
Accumulated depreciation (72,371,347)
Long term debt and related balances, and compensated absences have
not been included in the governmental fund activity:
Revenue bonds payable
(4,605,000)
ACBCI loan payable
(1,988,653)
DOE ARRA loan payable
(278,743)
Claims payable
(375,506)
Compensated absences
(1,072,295)
Deferred gain/(loss) on refunding
(251,153)
Deferred cost of issuance
187,233
Accrued interest payable for the current portion of interest due on debt
service has not been reported in the governmental fands. (49,694)
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. 237,854
Net position of governmental activities $ 284,197,667
See accompanying notes to basic financial statements.
17
CITY OF RANCHO MIRAGE
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended June 30, 2013
Revenues:
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Special assessments
Developer fees
Interest income
Net increase (decrease)
in fair value of investments
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Cultural and recreation
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in (note 5)
Transfers out (note 5)
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Special Revenue Funds
Housing
General Library Fire Tax Authority
Fund Fund Fund Fund
$ 13,498,252 $
761,558 $
1,831,158 $
-
1,361,870
1,590,214
1,171,903
44,363
390,571
-
-
4,480
731,744
408
16,250
1,453,281
118,819
53,187
-
-
3,330,765
265,819
1,088,222
-
60,731
-
-
-
1,357,641
28,733
4,426
119,625
(1,230,526)
(38,707) (5,777)
(119,356)
386,913
98,167 -
203,513
20,006,780
2,759,379 4,106,182
1,705,906
10,413,176 - - 2,201,997
6,819,960 - 4,714,518 -
3,499,397 - - -
- 2,690,540 - -
1,074,497 - - 6,589
19,983
- 2,937 -
21,807,030 2,713,460 4,714,518 2,208,586
(1,800,250) 45,919 (608,336) (502,680)
1,530,082
70,074
904,510 -
(887643)
(37234)
- (1554694)
642,439
32,840
904,510 (1,554,694)
(1,157,811)
78,759
296,174 (2,057,374)
81,310,600 2,726,556 432,169 18,222,249
$ 80,152,789 $ 2,805,315 $ 728,343 $ 16,164,875
See accompanying notes to basic financial statements.
18
Non major
Total
Governmental
Governmental
Funds
Funds
510,016
3,200,556
$ 828,392
$ 16,919,360
492,347
4,660,697
-
395,051
177,275
2,378,958
-
172,006
952,562
5,637,368
272,751
333,482
296,593
1,807,018
(257,856)
(1,652,222)
596,887
1,285,480
1,135,763
(1,704,489)
3,358,951
31,937,198
370,949
12,986,122
-
11,534,478
715,314
4,214,711
510,016
3,200,556
184,144
1,265,230
212,187
232,170
205,483
208,420
2,198,093
33,641,687
1,160,858
(1,704,489)
50,340
2,555,006
(75,435)
(2,555,006)
(25,095)
1,135,763
(1,704,489)
17,405,817
120,097,391
$ 18,541,580
$ 118,392,902
19
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2013
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 governmental funds 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
Capital outlay, net of adjustments for deletions
Depreciation expense, net of adjustments for deletions
Repayment of debt service principal is an expenditure in the governmental
funds, however, the repayment reduces long-term liabilities in the statement of net position.
2005A lease refunding revenue bonds
ACBCI liability
DOE -ARRA Loan
Compensated absences, claims payable and deferred bond issue costs 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 represents the net change
for the current period:
Compensated absences
Claims payable
Amortization of deferral on refunding
Amortization of deferred costs of issuance
Accrued interest for the current period
Change in net position of governmental activities
See accompanying notes to basic financial statements.
20
(1,704,489)
2,467,018
(4,662,040)
185,000
27,187
19,983
100,423
58,749
14,774
(11,014)
53,045
$ (3,451,364)
CITY OF RANCHO MIRAGE
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2013
Assets:
Cash and investments (note 2)
Cash and investments with fiscal agent (note 2)
Receivables:
Interest
Accounts
Loans
Due from other governments
Land held for resale
Deferred cost of issuance
Capital assets:
Non -depreciable capital assets
Total assets
Liabilities:
Accounts payable
Advances payable to City of Rancho Mirage
Deposits payable
Due to bondholders
Interest payable
Long-term liabilities:
Due within one year
Due in more than one year
Total liabilities
Net Position (Deficit):
Held in trust for beneficiaries
Redevelopment
Successor Agency
Private -purpose
Agency
Trust Fund
Fund
$ 6,773,003 $
4,155,785
54,125, 616
1,260,811
1,207
245
25,000
17,336
-
-
26,386
255,000
-
2,548,816
500,000
-
64,220,978 $
5,468,227
9,306 $ 850,127
9,666,379 -
- 1,753,623
- 2,864,477
1,769,004 -
6,028,960
142,004,799 -
159,478,448 $ 5,468,227
$ (95,257,470)
See accompanying notes to basic financial statements.
21
CITY OF RANCHO MIRAGE
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2013
Additions:
Property taxes
Investment earnings
Net increase (decrease)
in fair value of investments
Total Additions
Deductions:
General government
Interest and fiscal charges
Deferred issuance cost amortization
Total Deductions
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
See accompanying notes to basic financial statements.
22
Redevelopment
Successor Agency
Private -purpose
Trust Fund
$ 13,615,007
188,948
(192,428)
13,611,527
5,503,055
7,262,185
149,951
12,915,191
696,336
(95,953,806)
$ (95,257,470)
NOTES TO BASIC FINANCIAL STATEMENTS
(IN ORDER OF PRESENTATION)
JUNE 30, 2013
Note Description
1
Reporting Entity and Summary of Significant Accounting Policies
2
Cash and Investments
3
Due From and Due to Other Funds
4
Advances To and Advances From Other Funds/Redevelopment Successor
Agency Private -purpose Trust
5
Interfund Transfers
6
Capital Assets
7
Long-term Liabilities
8
Debt Without Governmental Commitment
9
Participation in Risk Pool
10
Joint Powers Finance Authority and Assessment District Budget
11
Defined Benefit Pension Plan
12
Other Post Employment Benefits (OPEB)
13
Deferred Compensation Plan
14
Contingencies
15
Fund Balances for Governmental Funds
16
Prior Period Adjustment
17
Successor Agency Trust for Assets of Former Redevelopment Agency
18
Subsequent Event
23
Page Number
24
35
39
39
40
41
42
45
46
47
47
48
51
51
52
53
53
54
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 —REPORTING ENTITYAND SUMMARY OF SIGNIFICANT ACCO UNTING POLICIES
A. Summary of Significant Accounting Policies
The basic financial statements of the City of Rancho Mirage (City) 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 Reporting Entity
The City 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 became a charter city which was approved by the
citizens of the City. The City operates under a council-manager form of government and the City Council
is composed of five elected 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) and there is a financial benefit or
burden relationship between the primary government and the component unit. 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:
Rancho Mirage Joint Powers Financing Authority
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 and there is a financial benefit or
burden relationship between the primary government and the component unit. Separate financial statements of
the Financing Authority are not issued.
24
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 —REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
A. Summary of Significant Accounting Policies (Continued)
Rancho Mirage Housing Authority
The Housing Authority was established October 6, 1994, 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 and there is a financial benefit or burden relationship between the
primary government and the component unit. Separate financial statements of the Housing Authority are
not issued.
Communitv Services District (CSD
The CSD was created on July 15, 1999, to collect property taxes for the Library and Fire Tax Funds. A
transfer of property tax revenues collected by the CSD is 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 and there is a financial benefit or
burden relationship between the primary government and the component unit. Separate financial
statements are not prepared for the CSD.
Library Foundation
The Library Foundation was created in September 2010, to raise funds on behalf of the Library. The
Foundation is a legally separate entity but is reported as if it were part of the City because the Foundation
almost exclusively benefits the primary governrnent and, as such, is considered a blended component unit.
Separate financial statements of the Foundation are available at City Hall, 69-825 Highway 111, Rancho
Mirage, California 92270.
B. Basis of Accounting 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
25
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 —REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Government -wide Financial Statements
Gover=ent-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.
The government -wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon as eligibility
requirements imposed by the provider have been met.
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
governrnent-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. Fiduciary funds of the City primarily represent assets held by
the City in a custodial capacity for other individuals or organizations.
26
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE #I —REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
B. Basis of Accounting and Measurement Focus (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. 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 when cash is
received by the governrnent.
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. Governmental fund operating statements present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in fund balance.
Non-current portions of long-term receivables due to governmental funds are reported on their balance
sheets in spite of their spending measurement focus. Recognition of governmental fund type revenues
represented by non-current receivables are deferred until they become measurable and available.
Due to their nature of their spending measurement focus, expenditure recognition for governrnental fund types
excludes amounts represented by non-current liabilities such as long-term debt. Such long-term amounts are
not recognized as governmental fund type expenditures or fund liabilities until they become due and payable.
27
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 —REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Funds (Continued)
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 expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned,
or unassigned) fund balances are available, the City's policy is to first apply restricted fund balance. When
expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are
available, the City's policy is to first apply committed fund balance, then assigned fund balance, and finally
unassigned fund balance. The City applies restricted resources when an expense is incurred for purposes for
which both restricted and unrestricted net position are available.
Fiduciary Funds
Fiduciary funds, including the private -purpose trust fund, use the economic resources measurement focus
and the accrual basis of accounting.
C. Fund Classifications
The City reports the following major governmental funds.
Major 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. This fund pays 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. Special Assessment tax revenue is restricted for
funding of library services and programs.
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. Special Assessment tax revenue is
restricted for funding of fire services.
Housing Authority Special Revenue Fund. The Housing Authority Fund is used to account for monies
restricted for assistance to low and moderate income households. Revenues are restricted by government
code for funding of housing units to benefit low and moderate income households.
28
CITY OF RANCHO MIRAGE
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 —REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
C. Fund Classifications (Continued)
Additionally, the City reports the following funds:
Fiduciary Funds
Redevelopment Successor Agency Private -purpose Trust Fund. This fund was created as part of the
dissolution of Redevelopment Agency. The fund accounts for the assets, liabilities, and activities of the
former Redevelopment Agency of the City in a trustee capacity to pay for enforceable obligations of the
former Redevelopment Agency. In accordance with Assembly Bill (AB) X1 26 and AB 1484, the
Redevelopment Agency was dissolved February 1, 2012.
Agency Fund. The City's Agency Fund is 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.
D. New Accounting Pronouncements
Adopted in the Current Year
GASB Statement No. 63 — In June 2011, GASB issued Statement No. 63, Financial Reporting of Deferred
Outflows of Resources, Deferred Inflows of resources, and Net Position. This statement provides financial
reporting guidance for deferred outflows of resources and deferred inflows of resources. The City
implemented this pronouncement, effective July 1, 2012.
Effective in Future Years
GASB Statement No. 65 — In March 2012, GASB issued Statement No. 65, Items Previously Reported as
Assets and Liabilities. This Statement provides guidance on proper classification of certain items previously
reported as assets and liabilities as deferred outflows or inflows of resources. This Statement also provides
guidance on recognition of certain items that were previously reported as assets and liabilities as outflows or
inflows of resources. This statement is effective as of July 1, 2013. The City has not determined the effect on
the financial statements.
GASB Statement No. 66 — In March 2012, GASB issued Statement No. 66, Technical Corrections 2012
an Amendment of GASB Statements No. 10 and No. 62. The objective of this Statement is to resolve
conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance
Reporting and Governmental Fund Type Definitions, and No. 62, Codification of Accounting and Financial
Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA Pronouncements. This
statement is effective as of July 1, 2013. The City has not determined the effect on the financial statements.
29
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 –REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
D. New Accounting Pronouncements (Continued)
Effective in Future Years (Continued)
GASB Statement No. 67 – In June 2012, GASB issued Statement No. 67, Accounting and Financial
Reporting for Pensions --an Amendment of GASB Statement No. 25. This statement establishes accounting
and financial reporting requirements related to pensions for governments whose employees are provided with
pensions through pension plans that are covered by the scope of this Statement, as well as for nonemployer
governments that have a legal obligation to contribute to those plans. This Statement also addresses
accounting and financial reporting for the activities of pension plans that are administered through trusts. This
Statement is effective as of July 1, 2013. The City has not determined the effect on the financial statements.
GASB Statement No. 68 – In June 2012, GASB issued Statement No. 67, Accounting and Financial
Reporting for Pensions --an Amendment of GASB Statement No. 27. This Statement establishes standards for
measuring and recognizing liabilities, deferred outflows of resources, deferred inflows of resources, and
expense/expenditures. For defined benefit pensions, this Statement identifies the methods and assumptions
that should be used to project benefit payments, discount projected benefit payments to their actuarial present
value, and attribute that present value to periods of employee service. This Statement is effective as of
July 1, 2014. The City has not determined the effect on the financial statements.
GASB Statement No. 69 – In January 2013, GASB issued Statement No. 69, Government Combinations and
Disposals of Government Operations. The objective of this Statement is to establish reporting standards
related to governmental combinations and disposals of government operations. The Statement is effective for
periods beginning after December 15, 2013, or the 2014-2015 fiscal year. The City has not determined the
effect on the financial statements.
GASB Statement No. 70 – In April 2013, GASB issued Statement No. 70, Accounting and Financial
Reporting for Nonexchange Financial Guarantees. The objective of this Statement is to improve the
recognition, measurement, and disclosure guidance for state and local governments that have extended or
received financial guarantees that are nonexchange transactions. The Statement is effective for periods
beginning after June 15, 2013, or the 2013-2014 fiscal year. The City has not determined the effect on the
financial statements.
GASB Statement No. 71 – In November 2013, GASB issued Statement No. 71, Pension Transition for
Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68. The
objective of this Statement is to address an issue regarding application of the transition provisions of Statement
No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with
contributions, if any, made by a state or local governrnent employer or nonemployer contributing entity to a
defined benefit pension plan after the measurement date of the government's beginning net pension liability.
This Statement is effective as of July 1, 2014. The City has not determined the effect on the financial
statements.
30
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 —REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
E. Fund Balance
The following classifications describe the relative strength of the constraints placed on the purposes for which
resources can be used:
Nonspendable
Amounts that cannot be spent either because they are in nonspendable form or are legally or contractually
required to be maintained intact (e.g. prepaid assets, inventory).
Restricted
Amounts that are constrained to specific purposes by state or federal laws, enabling legislation, or externally
imposed conditions by grantors or creditors.
Committed
Amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council, the
City's highest level of decision-making authority, through formal actions taken, such as a resolution. These
committed amounts cannot be used for any other purpose unless the City Council removes or changes the
specified use through the same type of formal action taken to establish the commitment. Council action to
commit fund balance needs to occur within the fiscal reporting period; but the amount, if any, which will be
subject to the constraint, may be determined at a subsequent period.
Assigned
Amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor
committed. The City Council retains the authority to assign fund balance for specific purposes.
Unassigned
The unassigned classification is to be used when there are negative residual resources in excess of what can be
properly classified as nonspendable, restricted, committed or assigned in funds outside of the General Fund.
Within the General Fund, the unassigned classification represents the residual amounts not classified in one of
the four previous classifications.
F. Cash and Investments
Investments are reported in the accompanying balance sheet at fair value, except for negotiated 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.
31
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 —REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
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.
Capital assets used in operations are depreciated over their estimated useful lives using the straight-line
method in the govemment wide financial statements and fiduciary funds. Depreciation is charged as an
expense against operations and accumulated depreciation is reported on the statement of net position. The
ranges of lives used for depreciation purposes for each capital asset class are as follows:
Building and improvements
30-50 years
Furniture and fixtures
3-15 years
Equipment
3-15 years
Infrastructure:
Pavement
25 years
Curbs and gutters
50 years
Sidewalks
50 years
Bridges
50 years
Medians
50 years
Traffic signals
15 years
Storm drain system
75 years
H. Property Taxes
Property taxes are assessed and collected each fiscal year according to the following property tax calendar:
Lien Date
Levy Date
Due Date
Delinquent Date
32
January 1
July 1
November 1 (first installment)
February 1 (second installment)
December 10 (first installment)
April 10 (second installment)
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 —REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
H. Property Taxes (Continued)
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.
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 June 30, 2013
were $115,529.
J. 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 $5 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 governrnent-wide financial statements
since these liabilities are funded on a pay-as-you-go basis in the funds and are not payable from currently
available financial resources.
L. Interfund Borrowing
Due from and Due to other funds represent short term borrowings.
M. Land Held for Resale
Land held for resale represents land, structures and their related improvements that were acquired for resale in
accordance with the objectives of the Housing Authority. Property held for resale is valued at the lower of
historical cost or estimated resale value.
33
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 —REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
N. Transient Occupancy Tax
Approximately 26.8 percent of General Fund revenue is derived from transient occupancy tax collected within
the City.
O. Compensated Absences
A liability is recorded for unused vacation and similar compensatory leave balances since the employees'
entitlement to these balances are 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.
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
governrnent-wide financial statements as these amounts will be liquidated from future resources.
Depending upon the length of employment, full-time City employees earn 10 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.
Full-time City employees are provided with 12 sick days a year. A maximum of 120 days of sick leave may
be accumulated.
Upon termination, full-time employees are entitled to receive compensation at their current base salary for all
unused vacation leave, administrative leave, compensatory time and floating holidays. Upon termination, full-
time employees receive 50 percent of their accrued sick leave at their current pay rate. Upon retirement, full-
time employees are eligible to receive up to 50 percent of their accrued sick leave at their current pay rate and
the remaining 50 percent converted to service credit with the California Public Employees Retirement System
or convert 100 percent of accrued sick leave to service credit or a combination of the two.
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.
34
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 41 —REPORTING ENTITYAND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)
R. Receivables
At fiscal year end the collectability of parcel charges due from the County of Riverside in the Storm Water
Quality fund was unknown. An allowance has been recorded as follows:
Storm Water Quality Fund
Due from other governments
Allowance
Due from other governments, net
S. Use of Estimates
$ 158,000
(158,000)
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 those estimates.
NOTE 42 — CASHAND INVESTMENTS
Cash and investments as of June 30, 2013 are classified in the accompanying financial statements as follows:
Statement of net position:
Cash and investments
Cash and investments with fiscal agent
Fiduciary funds
$ 102,800,428
4,138,157
Cash and investments 10,928,788
Cash and investments with fiscal agent 55,386,427
Total cash and investments $ 173,253,800
Total City deposits and investments at fair value as of June 30, 2013 are reported as follows:
Cash on hand
Deposits with financial institutions
Investments
Total cash and investments
35
$ 2,554
541,513
172,709,733
$ 173,253,800
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 42 — CASHAND INVESTMENTS (Continued)
Investments Authorized by the California Government Code and the City's Investment Policy
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.
Based on state law requirements or investment policy requirement, whichever is more restrictive. In accordance
with the City's investment policy, a maximum of 25% of the City's investment portfolio may be invested for more
than 5 years, not to exceed 10 years.
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.
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.
36
*Maximum
Maximum
*Maximum
Percentage
Investment
Investment Types
Maturity
Allowed
in One Issuer
U.S. Treasury Obligations
5 years
None
None
U.S. Agency Securities
5 years
None
None
Certificates of Deposit
N/A
None
15%
Negotiable Certificates of Deposit
5 years
30%
$1,000,000
Repurchase Agreements
1 year
None
None
Money Market Mutual Funds
N/A
20%
10%
Local Agency Investment Fund (LAIF)
N/A
None
None
Based on state law requirements or investment policy requirement, whichever is more restrictive. In accordance
with the City's investment policy, a maximum of 25% of the City's investment portfolio may be invested for more
than 5 years, not to exceed 10 years.
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.
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.
36
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 42 — CASHAND INVESTMENTS (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:
Investment Type
Total
12 Months
Or Less
13 to 24
Months
Remaining Maturity
25 to 36
Months
(in Months)
37 to 48
Months
49 to 60
Months
More than
60 Months
Investments held by City:
- 73,992,758 -
33,750,159
- - 33,750,159
11,576,355
11,576,355 - -
100,487
100,487 -
U.S. Treasury Notes
$ 6,327,052 $
137,104
$ 1,501,459
$ 2,065,375
$ 2,623,114
$ -
$ -
Federal Agency Securities
73,992,758
1,049,023
17,131,870
19,064,037
12,410,149
6,802,041
17,535,638
State Investment Pool
(LAIF)
33,750,159
33,750,159
-
-
-
-
-
Investments held by fiscal
Agent:
U.S. Treasury Notes
11,576,355
10,448,783
-
776,351
351,221
-
-
CertificatesofDeposit
100,487
100,487
-
-
-
-
-
Federal Agency Securities
391,028
-
-
-
391,028
-
Money Market Funds
46,571,894
46,571,894
Total
$ 172,709,733 $
92,057,450
$ 18,633,329
$ 21,905,763
$ 15,384,484
$ 7,193,069
$ 17,535,638
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 Moody's actual rating as of year-end for each investment type.
Investment Typ
U.S. Treasury notes
Federal agency securities
State investment pool (LAIF)
Held by fiscal agent:
U.S. Treasury notes
Certificates of deposit
Federal agency
securities
Money market funds
Total
391,028 391,028
46,571,894 - 46,571,894
$ 172,709,733 $ 18,003,894 $ 120,955,680 $ 33,750,159
37
Exempt
From Not
Total
Disclosure Aaa Rated
$ 6,327,052
$ 6,327,052 $ $
73,992,758
- 73,992,758 -
33,750,159
- - 33,750,159
11,576,355
11,576,355 - -
100,487
100,487 -
391,028 391,028
46,571,894 - 46,571,894
$ 172,709,733 $ 18,003,894 $ 120,955,680 $ 33,750,159
37
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 42 — CASHAND INVESTMENTS (Continued)
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 percent or more of total
City investments are as follows:
Investment Reported
Reporting Unit Issuer Type Amount
* Federal National Mortgage Association (FNMA) Federal agency securities $ 35,056,201
* Federal Home Loan Bank (FHLB) Federal agency securities 13,714,558
* Federal Farm Credit Bank (FFCB) Federal agency securities 19,186,266
*These investments exceed 5 percent of total pooled investments held in the City's investment pool for both
governmental and fiduciary fund types.
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 percent 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 percent of the secured public deposits. Of the City's deposits
with financial institutions, $207,651 was in excess of federal depository insurance limits and subject to custodial
credit risk as described above.
For investments identified herein as held by fiscal agent, the fiscal agent holds the investment on behalf of the
City.
Investment in State Investment Pool (LAIF)
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 registered with the Securities
and Exchange Commission and is not rated.
38
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 43 — DUE FROMAND DUE TO OTHER FUNDS
Current interfund receivables and payables balances at June 30, 2013 are as follows:
The Library Fund receivable of $4,840 is accrued revenue from the General Fund for special assessment tax
disbursements. The Fire Tax Fund receivable of $22,513 is accrued revenue from the General Fund for special
assessment tax disbursements.
NOTE 44 — ADVANCES TO AND ADVANCES FROM OTHER FUNDS/REDEVELOPMENT SUCCESSOR
AGENCY PRIVATE -PURPOSE TRUST
Advances to Other Funds Advances from Other Funds
RDA Successor Agency
Private -purpose Trust Fund
Housing Authority Fund $ 9,666,379
In May 2010 and May 2011, the former Redevelopment Agency made payments of approximately $12.6 million
and $2.6 million, respectively, for the State's Supplemental Educational Revenue Augmentation Fund (SERAF).
The former RDA borrowed accumulated balances in the Housing Authority Fund to make the SERAF payment.
The advance payable was transferred to the RDA Successor Agency as part of the dissolution. A payment of
$1,842,654 was approved on the Recognized Obligation Payment Schedule (BOPS) and made from the RDA
Successor Agency to the Housing Authority during the fiscal year.
39
Due From
General
Due to
Fund
Total
Library Fund
$ 4,840
$ 4,840
Fire Tax Fund
22,513
22,513
Total
$ 27,353
$ 27,353
The Library Fund receivable of $4,840 is accrued revenue from the General Fund for special assessment tax
disbursements. The Fire Tax Fund receivable of $22,513 is accrued revenue from the General Fund for special
assessment tax disbursements.
NOTE 44 — ADVANCES TO AND ADVANCES FROM OTHER FUNDS/REDEVELOPMENT SUCCESSOR
AGENCY PRIVATE -PURPOSE TRUST
Advances to Other Funds Advances from Other Funds
RDA Successor Agency
Private -purpose Trust Fund
Housing Authority Fund $ 9,666,379
In May 2010 and May 2011, the former Redevelopment Agency made payments of approximately $12.6 million
and $2.6 million, respectively, for the State's Supplemental Educational Revenue Augmentation Fund (SERAF).
The former RDA borrowed accumulated balances in the Housing Authority Fund to make the SERAF payment.
The advance payable was transferred to the RDA Successor Agency as part of the dissolution. A payment of
$1,842,654 was approved on the Recognized Obligation Payment Schedule (BOPS) and made from the RDA
Successor Agency to the Housing Authority during the fiscal year.
39
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 45 —INTERFUND TRANSFERS
Interfund transfers during the year ended June 30, 2013 consisted of the following:
Transfer From:
Housing Nonmajor
General Library Authority Governmental
Transfer in: Fund Fund Fund Fund Total
General Fund $ $ 37,234 $ 1,455,614 $ 37,234 $ 1,530,082
Library Fund - 70,074 - 70,074
Fire Tax Fund 887,643 16,867 - 904,510
Nonmajor Governmental Funds - - 12,139 38,201 50,340
Total $ 887,643 $ 37,234 $ 1,554,694 $ 75,435 $ 2,555,006
Transfers were used to:
1. Transfer from the General Fund to the Fire Tax Fund for reimbursement of costs associated with public
safety.
2. Reimburse the costs, fees and expenses of staffing and services provided from the Housing Authority
Fund to the General Fund.
3. Transfer in -lieu taxes from the Housing Authority Fund to the Library 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 Nomnajor Governmental Funds.
40
rric:� ;AVc�:c:���::;�[efy
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE #6— CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2013 was as follows:
Government activities:
Buildings
Improvements
Furniture and fixtures
Equipment
Infrastructure - improved bike trails
Infrastructure - road system
Infrastructure - storm drain system
Total cost of depreciable assets
Less accumulated depreciation:
Buildings
Improvements
Furniture and fixtures
Equipment
Infrastructure - improved bike trails
Infrastructure - road system
Infrastructure - storm drain system
Total accumulated depreciation
Net depreciable assets
Capital assets not depreciated:
Land
Rights of way - road system
Rights of way - off-road
trail system
Work in progress
Total capital assets not depreciated
Total capital assets, net
Balance at Balance at
July 1, 2012 Additions Deletions June 30, 2013
$ 61,123,064
$ - $
-
$ 61,123,064
2,984,980
-
-
2,984,980
4,133,117
48,138
-
4,181,255
3,082,653
454,090
(289,702)
3,247,041
67,958
-
-
67,958
110,187,780
1,029,889
(90,069)
111,127,600
17,302,551
-
-
17,302,551
198,882,103
1,532,117
(379,771)
200,034,449
(11,712,901)
(1,065,741)
-
(12,778,642)
(674,257)
(48,514)
-
(722,771)
(3,142,967)
(115,760)
-
(3,258,727)
(2,321,189)
(174,956)
218,999
(2,277,146)
(8,571)
(1,359)
-
(9,930)
(44,169,297)
(3,268,191)
24,233
(47,413,255)
(5,680,125)
(230,751)
-
(5,910,876)
(67,709,307)
(4,905,272)
243,232
(72,371,347)
131,172,796
(3,373,155)
(136,539)
127,663,102
26,921,239 - - 26,921,239
11,188,410 - - 11,188,410
1,077,859 - - 1,077,859
5,835,440 1,404,741 (90,069) 7,150,112
45,022,948 1,404,741 (90,069) 46,337,620
$ 176,195,744 $ (1,968,414) $ (226,608) $ 174,000,722
Depreciation expensed was charged to the following functions in the Statement of Activities:
General government
Public safety
Public works
Cultural and recreation
Total
$ 620,258
82,791
3,668,210
534,013
$ 4,905,272
41
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 47 — LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2013 was as follows:
Compensated absences and claim payables have been typically liquidated from the general fund. ACBCI pay back
deficit is liquidated from development impact fees in the capital project fund.
2005A Lease Refunding Revenue Bonds
On May 1, 2005, the Rancho Mirage Joint Powers Financing Authority (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 Authority's Library Lease Revenue Bonds, Series 1995, originally issued in
the principal amount of $3,375,000.
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 Authority, the City has leased the Leased Property to the Authority 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 Authority. The
Base Rental is calculated to be an amount sufficient to permit the Authority to pay all scheduled debt service
on the Bonds when due.
42
Beginning
Ending
Due within
Balance (restated)
Additions Retirements
Balance
One year
Revenue bonds payable:
2005A lease refunding
revenue bonds
$ 4,790,000
$ - $ (185,000) $
4,605,000
$ 190,000
Other long-term liabilities:
DOE -ARRA Loan
298,726
- (19,983)
278,743
20,183
ACBCI liability
2,015,840
- (27,187)
1,988,653
-
Compensated absences
1,172,718
189,067 (289,490)
1,072,295
303,965
Claims payable
434,255
- (58,749)
375,506
-
Deferrals on refunding and
issuance (discounts)/premiums
265,927
- 14,774
251,153
14,774
TOTALS
$ 8,977,466
$ 189,067 $ (565,635) $
8,571,350
$ 528,922
Compensated absences and claim payables have been typically liquidated from the general fund. ACBCI pay back
deficit is liquidated from development impact fees in the capital project fund.
2005A Lease Refunding Revenue Bonds
On May 1, 2005, the Rancho Mirage Joint Powers Financing Authority (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 Authority's Library Lease Revenue Bonds, Series 1995, originally issued in
the principal amount of $3,375,000.
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 Authority, the City has leased the Leased Property to the Authority 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 Authority. The
Base Rental is calculated to be an amount sufficient to permit the Authority to pay all scheduled debt service
on the Bonds when due.
42
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 47 - LONG-TERM LIABILITIES (Continued)
2005A Lease Refunding Revenue Bonds (Continued)
Beginning April 1, 2006, the 2005A Bonds were due in annual installments of $150,000 to $375,000 through
April 1, 2030. Interest ranging from 3 percent to 4.5 percent 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, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
2014
$ 99,388
$ 99,388
$ 198,776
$ 190,000
$ 388,776
2015
95,955
95,954
191,909
200,000
391,909
2016
91,944
91,945
183,889
205,000
388,889
2017
87,716
87,716
175,432
215,000
390,432
2018
83,282
83,282
166,564
225,000
391,564
2019
78,641
78,642
157,283
235,000
392,283
2020
73,648
73,647
147,295
245,000
392,295
2021
68,441
68,441
136,882
255,000
391,882
2022
63,023
63,022
126,045
265,000
391,045
2023
57,325
57,325
114,650
275,000
389,650
2024
51,309
51,310
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
31,387
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
8,437
8,438
16,875
375,000
391,875
TOTALS
$ 1,014,547
$ 1,014,547
$ 2,029,094
$ 4,605,000
$ 6,634,094
43
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 47 - LONG-TERM LIABILITIES (Continued)
Energy Conservation Loan - ARRA
In February 2010, the City entered into a loan agreement with the State of California Energy Resources
Conservation and Development Commission to provide funding for the purchase and installation of an energy
efficient cooling system for the City's Library. An amount of $317,055 was drawn on the loan. The loan
accrues simple interest at a rate of 1 percent annually. Principal and interest payments are due in 26 semi-
annual installments with the first payment due December 22, 2011. The annual debt service requirements for
the energy conservation loan as of June 30, 2013 are as follows:
Month
Fiscal
Year
Total
Interest
Principal Due
Total
Annual
Debt Service
December 22
2014
$ 1,397
$ 10,063
$ 11,460
June 22
2014
1,340
10,120
11,460
December 22
2015
1,296
10,164
11,460
June 22
2015
1,238
10,222
11,460
December 22
2016
1,194
10,266
11,460
June 22
2016
1,143
10,317
11,460
December 22
2017
1,091
10,369
11,460
June 22
2017
1,033
10,427
11,460
December 22
2018
987
10,473
11,460
June 22
2018
929
10,531
11,460
December 22
2019
881
10,579
11,460
June 22
2019
824
10,636
11,460
December 22
2020
775
10,685
11,460
June 22
2020
721
10,739
11,460
December 22
2021
667
10,793
11,460
June 22
2021
610
10,850
11,460
December 22
2022
559
10,901
11,460
June 22
2022
501
10,959
11,460
December 22
2023
449
11,011
11,460
June 22
2023
392
11,068
11,460
December 22
2024
339
11,121
11,460
June 22
2024
283
11,177
11,460
December 22
2025
227
11,233
11,460
June 22
2025
170
11,290
11,460
December 22
2026
113
11,347
11,460
June 22
2026
57
11,402
11,459
TOTALS
$ 19,216
$ 278,743
$ 297,959
44
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 47 — LONG-TERM LIABILITIES (Continued)
ACBCI Liability
On July 6, 2001 the City entered into an agreement with the Agua Caliente Band of Cahuilla Indians for
improvements to Bob Hope Drive and Dinah Shore Drive. Under the agreement the tribe loaned the City interest
free an amount equal to 50 percent of the project costs for the improvements to Bob Hope Drive and Dinah Shore
Drive. The borrowing amounted to $2,683,292. The City makes annual payments based on future revenues from
development fees which were estimated in the base year as $220,000. If an annual payment is less than $220,000
the City shall identify the difference between the amount actually paid and the base year amount of $220,000 as
the pay back deficit. If a pay -back deficit exists and development fee revenues exceed $220,000 for the year the
excess will be applied to the pay back deficit. During the year, $27,187 was repaid. As of June 30, 2013 the pay
back deficit was $845,361 and the remaining principal was $1,143,292 resulting in a total ACBCI liability of
$1,988,653.
NOTE #8—DEBT WITHOUT GOVERNMENTAL COMMITMENT
The City has issued 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. $9,495,000 of these bonds is
outstanding at June 30, 2013.
On January 29, 1997, the Joint Powers Financing Authority (Authority) issued $95,000,000 in certificates of
participation evidencing an interest in payments to be made by the Eisenhower Medical Center (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. $27,590,000 of these bonds is outstanding at June 30, 2013.
45
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 49 — PARTICIPATIONINRISK 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-seven participating
member agencies: nineteen 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.
The liability program provides coverage up to $50 million per occurrence for personal injury, bodily injury,
property damage and public officials' errors and omissions. Effective July 12005, the City's self-insured retention
is $125,000 and participates in risk sharing pools for losses up to $1 million followed by PERMA's membership in
the CSAC Excess Insurance Authority (ETA) for $49 million excess liability coverage.
The workers' compensation program provides $5 million each accident for employers' liability. The City self -
insures up to a level of $250,000 per 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
Claim Ending
Payments Balance
$ (193,169) $ 434,255
(58,749) 375,506
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
three (3) years.
46
Claims and
Beginning
Changes in
Balance
Estimates
2011-2012 $ 627,424
$
2012-2013 434,255
Claim Ending
Payments Balance
$ (193,169) $ 434,255
(58,749) 375,506
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
three (3) years.
46
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 410 — JOINT POWERS FINANCE -4 UTHORITYAND ASSESSMENT DISTRICTS BUDGET
Formal budgetary integration is not adopted for the Joint Powers Financing Authority Debt Service Fund and
Assessment District Capital Project Fund.
NOTE #11— DEFINED BENEFIT PENSION PLAN
The City provides a defined benefit pension plan that includes retirement and disability benefits, annual cost -of -
living adjustments, and death benefits to plan members and beneficiaries. The City contracts with the California
Public Employees' Retirement System (CalPERS), a cost-sharing, multi-employer public employee defined
benefit pension plan administered by CalPERS. CAPERS provides retirement and disability benefits, annual cost -
of -living adjustments, and death benefits to plan members and beneficiaries. State statutes, within the Public
Employees' Retirement Law, establish benefit provisions and other requirements. The City selects optional
benefit provisions from the benefit menu by contract with CAPERS and adopts those benefits through local
ordinance. Copies of the CAPERS annual financial report may be obtained from the CalPERS Executive Office at
400 P Street, Sacramento, California 95814 or downloaded from their website at www.calpers.gov.
Pursuant to City Council action to reduce pension benefits for future employees and the California Public
Employees' Pension Reform Act of 2012, the City now has 3 tiers of defined pension benefits. For employees
hired prior to July 13, 2012, the City participates in a Miscellaneous 2.5 percent at 55 Risk Pool (Vt Tier). For
employees hired after July 13, 2012 but before January 1, 2013 and employees hired after January 1, 2013 that
have participated in a reciprocating California public employee pension plan within six months of being hired by
the City, the City participates in a Miscellaneous 2 percent at 60 Risk Pool (2nd Tier). For all other employees
hired after January 1, 2013, the City will participate in a Miscellaneous 2 percent at 62 Risk Pool (3rd Tier).
Contributions and Funding Policy
The contribution requirements of plan members are established by State statute and the employer contribution rate
is established and amended by CalPERS. During fiscal year 2012-13, 14 Tier City employees were required to
contribute 3 percent of their annual covered salary of the total 8 percent "employee" share of pension cost with the
other 5 percent being paid on the employees behalf by the City. City employees in the 2nd and 3rd Tiers were
required to contribute the full "employee" share of pension cost at 7 percent for 2nd Tier coverage, and 6.25
percent for 3rd Tier coverage. The City is required to contribute the actuarially determined remaining amounts
necessary to fund the benefits for its members. The City's fiscal year 2012-13 contribution rates for the Pension
Plan were as follows.
47
Employer
Contribution
Retirement
Rate
Plan
Tier
2.5% at 55
14 Tier
21.894%
2% at 60
2°d Tier
8.049%
2% at 62
3`d Tier
6.250%
47
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE #11— DEFINED BENEFIT PENSIONPLAN (Continued)
The City's contributions to Ca1PERS for the most recent three years follow.
NOTE 412 — OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description: The City administers a single -employer defined benefit plan (Plan) which provides health care
(medical, dental, and vision) benefits to eligible members 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. The City Manager and City Clerk are eligible for the same
coverage.
Effective July 1, 2000, continued medical, dental and vision insurance for retired employees and their
spouse/dependents was provided pursuant a Memorandum of Understanding between the City and the Rancho
Mirage Employees' Association.
48
Annual Pension Cost
Percentage of Annual
Employer
Pension Cost
Contribution
Contributed
Year Ended
June 30, 2013
$1,704,693
100%
June 30, 2012
$1,605,560
100%
June 30, 2011
$1,543,667
100%
NOTE 412 — OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description: The City administers a single -employer defined benefit plan (Plan) which provides health care
(medical, dental, and vision) benefits to eligible members 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. The City Manager and City Clerk are eligible for the same
coverage.
Effective July 1, 2000, continued medical, dental and vision insurance for retired employees and their
spouse/dependents was provided pursuant a Memorandum of Understanding between the City and the Rancho
Mirage Employees' Association.
48
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 412 —OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
For all covered employees with effective dates of retirement after December 7, 2000 and a minimum of 5-10 years
of continuous service, the City contributes the actual cost of insurance up to the amount contributed for active
employees. These benefits with the City will terminate upon reaching age 65, the current eligibility for Medicare.
Eligibility: Employees first employed full-time by the City before July 1, 2005, are eligible for retiree health
benefits if they retire from the City and begin drawing a PERS pension: 1) on or after age 55 with at least 10
consecutive years of service; or 2) on or after age 63 with at least 5 consecutive years of service. Spouses and
dependents are eligible as well if the covered employee serves 15 and 20 years, respectively. Membership of the
plan consisted of the following at June 30, 2013, the date of the latest actuarial valuation:
Active Retired Total
Under 65 73 12 85
65 & over 8 4 12
Total 81 16 97
City's Funding Policy: The contribution requirements of plan members and the City are established and may be
amended by City Council. The contribution required to be made under City Council and labor agreement
requirements is based on actuarially determined annual required contribution with a portion of current premiums
paid directly to City retirees. For fiscal year 2012-13, the City contributed $330,073 to the plan. No employee
contributions are required to participate in the Plan.
The City makes voluntary contributions to the Ca1PERS trust. CAPERS publishes separate financial statements
conforming to GASB Statement No. 43 in separately issued financial statements for the Ca1PERS OPEB Trust.
Copies of PERS' annual financial reports for its OPEB Trust may be obtained from its executive office at 400 "Q"
Street, Sacramento, California 95811.
Annual OPEB Cost and Net OPEB Obligation. The City's annual cost (expense) is calculated based on the annual
required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters
of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period
not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year,
the amount actually contributed to the plan, and changes in the City's net OPEB obligation for these benefits:
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2013 and the two preceding years were as follows:
Percentage of
Annual
Fiscal Annual OPEB Cost
Year OPEB Cost Contributed
6/30/2011
$ 218,408
100%
6/30/2012
326,345
100%
6/30/2013
330,073
100%
49
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 412 —OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
Funded Status and Funding Progress. Actuarial valuations of an ongoing plan involve estimates of the value of
reported amounts and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made about the
future. The schedule of funding progress immediately following the notes to the financial statements presents
multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liabilities for the benefits.
The funded status as of the most recent actuarial date is as follows:
6/30/2013 $ 1,098,348 $ (2,759,063) $ (1,660,715) 39.8% $ 6,840,555 24.3%
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the
substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs between employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial assets, consistent with the
long-term perspective of the calculations.
The actuarial cost method used for determining the benefit obligations is the Entry Age Normal Actuarial Cost
Method. The actuarial assumptions included a 7.25 percent investment rate of return, which is the assumed rate of
the expected long-term investment returns on plan assets calculated based on the funded level of the plan at the
valuation date, and an annual healthcare cost trend rate of 5.5 percent initially, 11 percent in 2013, then reduced by
decrements of 2.0 per year to an ultimate rate of 5 percent after the fourth year. The UAAL is being amortized as
a level percentage of projected payroll over an open 30 year enrollment period. It is assumed the City's payroll
will increase 2.75 percent per year.
50
Actuarial
Accrued
UAAL as a
Actuarial
Liability
Unfunded
Percentage of
Actuarial Value of
(AAL)-
AAL
Funded Covered
Covered
Valuation Assets
Entry Age
(UAAL)
Ratio Payroll
Payroll
Date (a)
(b)
(b -a)
(a/b) (c)
(b-a)/c)
6/30/2013 $ 1,098,348 $ (2,759,063) $ (1,660,715) 39.8% $ 6,840,555 24.3%
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the
substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs between employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial assets, consistent with the
long-term perspective of the calculations.
The actuarial cost method used for determining the benefit obligations is the Entry Age Normal Actuarial Cost
Method. The actuarial assumptions included a 7.25 percent investment rate of return, which is the assumed rate of
the expected long-term investment returns on plan assets calculated based on the funded level of the plan at the
valuation date, and an annual healthcare cost trend rate of 5.5 percent initially, 11 percent in 2013, then reduced by
decrements of 2.0 per year to an ultimate rate of 5 percent after the fourth year. The UAAL is being amortized as
a level percentage of projected payroll over an open 30 year enrollment period. It is assumed the City's payroll
will increase 2.75 percent per year.
50
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 413 — 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 $16,500 under 50 years old and $22,000 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 $65,240. 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 total amount contributed by the City for FY 12-13 for both
plans was $14,490.
The City formally established 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.
NOTE 414 — CONTINGENCIES
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.
51
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 415 — FUND BALANCES FOR GO PERNMENTAL FUNDS
The details of the fund balances as of June 30, 2013 are presented below:
Nonspendable:
Prepaid items
Loans Receivable
Total Nonspendable
Restricted:
Debt service
Library operations
Fire tax/public safety operations
Housing authority loan programs
Housing authority operations
Other purposes
Public works
Culture and recreation
Capital projects
Total Restricted
Special Revenue
Housing Non -major Total
General Library Fire Tax Authority Governmental Governmental
Fund Fund Fund Fund Funds Funds
$ 2,237 $ - $ - $ - $ - $ 2,237
1,455,190 1,455,190
1 d57d07 _ _ _ _ 1 d57d07
- - - - 397,993
397,993
- 2,805,315 - - -
2,805,315
- - 728,343 - -
728,343
- - - 1,701,509 -
1,701,509
- - - 14,463,366 -
14,463,366
- - - - 3,535,658
3,535,658
- - - - 557,704
557,704
- - - - 5,501,009
5,501,009
8,549,216
8,549,216
2,805,315 728,343 16,164,875 18,541,580
38,240,113
Committed:
Prudent Reserve
25,000,000
Distaster Recovery
15,000,000
Capital Projects
8,925,503
Economic Development
5,000,000
Public Library
5,000,000
Ritz Spa Suite Purchase
5,000,000
Section 19 Water
5,125,000
Total Committed
69,050503
- - 25,000,000
- - 15,000,000
- - 8,925,503
- - 5,000,000
- - 5,000,000
- - 5,000,000
s los nnn
Unassigned: 9,644,859 9,644,859
Total Fund Balance $ 80,152,789 $ 2,805,315 $ 728,343 $ 16,164,875 $ 18,541,580 $ 118,392,902
52
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 415 — FUND BALANCES FOR GOVERNMENTAL FUNDS (Continued)
Minimum Fund Balance Policy
The City Council adopted a resolution committing the following fund balance in May 2013.
• Prudent Reserve —$25 million set aside for future revenue shortfalls of 9% or more from the prior year
total General Fund revenues.
• Disaster Recovery —$15 million to cover costs and losses as a result of a major earthquake or other major
disaster that require activation of the City's Emergency Operating Center (EOC).
• Capital Projects —$8.925 million for land, equipment replacement, information technology equipment and
software, facility and infrastructure renovation, and upgrade and acquisitions.
• Economic Development—$5 million to be used to continue economic development efforts of the former
redevelopment agency.
• Public Library —$5 million is to supplement the operating and capital costs of the Library Fund.
• Ritz Spa Suite Purchase—$5 million for the purchase of the Spa Suite's according to the operating
covenant and amendments.
• Section 19 Water $5.125 million for deposit into an escrow account relating to costs of bringing water to
section 19 for development purposes.
NOTE 416 — PRIOR PERIOD ADJUSTMENTS
During the current year, the City corrected the liability of the Agua Caliente Band of Cahuilla Indians (ACBCI)
liability to include both the principal and the payback deficit. Beginning net position was restated as follows:
Governmental
Activities
Beginning Net Position as previously reported $ 289,012,323
Restatement due to correction of ACBCI liability (1,363,292)
Beginning Net Position, as restated $ 287,649,031
NOTE #17— SUCCESSOR AGENCY TR UST FOR ASSETS OF FORMER REDEVELOPMENTAGENCY
On December 29, 2011, the California Supreme Court upheld AB 1X 26 that provides for the dissolution of all
redevelopment agencies in the State of California. This action impacted the reporting entity of the City of
Rancho Mirage that previously had reported a redevelopment agency as a blended component unit. The
City Council elected to become the Successor Agency for the former redevelopment agency.
Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual
installment payments on enforceable obligations as approved by the Successor Agency Oversight Board and the
California Department of Finance.
53
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 2013
NOTE 417— SUCCESSOR AGENCY TR UST FOR ASSETS OF FORMER REDEVELOPMENTAGENCY
(Continued)
The Bill directed the State Controller of the State of California to review the propriety of any transfers of
assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the
public body that received such transfers is not contractually committed to a third party for the expenditure or
encumbrance of those assets, the State Controller is required to order the available assets to be transferred to
the public body designated as the successor agency by the Bill.
On May 7, 2013, the City received notification that a Finding of Completion has been granted, which allows
for: 1) loan agreements between the former redevelopment agency and City may be placed on the
Recognized Obligation Payment Schedule (BOPS) as an enforceable obligation, provided the oversight
board makes a finding that the loan was for a legitimate redevelopment purpose per California Health and
Safety Code (HSC) section 34191.4(b)(1), and 2) utilizing proceeds derived from bonds issued prior to
January 1, 2011 in a manner consistent with the original bond covenants per HSC section 34191.4(c).
NOTE #18— SUBSEQUENT EVENT
On September 24, 2013 and September 25, 2013, the Successor Agency sold $50,370,000 in tax allocation
bonds and together with $22,709,339 in prior bond proceeds, refunded and redeemed $72,265,000 of the
Successor Agency's outstanding Tax Allocation Bond Series 2001, 2002 and Series 2003. The refunding plan
and bond issuance was reviewed and approved by the California Department of Finance on September 6,
2013. The Successor Agency's bond refunding represented the sixth, seventh and eight refunding bond
issuances completed since the dissolution of all redevelopment agencies in the State.
The refunding plan consisted of three bond issuances, a $23,330,000 Merged Project Area Housing Series, a
$10,470,000 Whitewater Project Sub Area Series and a $16,570,000 Northside Sub Area Series. The Bonds
together were sold at a net premium of $3,398,399 generating additional funds for the refunding program. In
addition to refunding savings, the principal amount of bonds outstanding was reduced from $155,515,000 to
$133,240,000. Total debt service, as a result of the refunding and application of prior bond proceeds, was
reduced by $37,210,063.
On November 5, 2013, the City received notification that two previous loans from the Rancho Mirage Housing
Authority to the former Rancho Mirage Redevelopment Agency in the amount of $12,583,600 and $2,590,741
were enforceable obligations. These loans were previously approved on the ROPS covering the period
July 1, 2012 through December 31, 2012 and were disallowed on the ROPS covering the period January 1,
2013 through June 30, 2013 when the remaining balance was $9,666,379. Loan repayments will be made in
accordance with Health and Safety Code Section 34191.4(b)(2).
On February 20, 2014, the Successor Agency received approval of its Long Range Property Management Plan
(LRPMP) from the California Department of Finance. The LRPMP consisted of two properties. The first
property will be sold and the second property will be transferred to the City of Rancho Mirage for
governmental purpose. Management expects to the sale and transfer of the properties to occur in the Fall of
2014.
54
REQUIRED SUPPLEMENTARYINFORMATION
CITY OF RANCHO MIRAGE
SCHEDULE OF FUNDING PROGRESS
OTHER POST EMPLOYMENT BENEFITS
Year Ended June 30, 2013
Additional actuarial valuation information will be provided as future valuations are performed.
55
Actuarial
Accrued
UAAL as a
Actuarial
Liability
Unfunded
Percentage of
Actuarial
Value of
(AAL)-
AAL
Funded
Covered
Covered
Valuation
Assets
Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
(b)
(b -a)
(a/b)
(c)
(b-a)/c)
6/30/2011
$ 613,916
$ 2,335,827
$ 1,721,911
26.3%
$ 6,446,176
26.7%
6/30/2013
1,098,348
2,759,063
1,660,715
39.8%
6,840,555
24.3%
Additional actuarial valuation information will be provided as future valuations are performed.
55
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Revenues:
Taxes:
Property taxes
Sales tares
Franchise tares
Transient occupancy taxes
Real property transfer taxes
Total taxes
Intergovernmental:
Motor vehicle in -lieu
Reimbursement from non-government
County COPS Program
Other
Total intergovernmental
Licenses and permits:
Business licenses
Plan check fees
Public works inspections and fees
Total licenses and permits
Charges for services:
Planning fees
PEG fees
Construction permits
Total charges for services
Developer fees
Fines and forfeitures
Interest income
Net increase (decrease) in
investment fair value
Miscellaneous
Total revenues
Year Ended June 30, 2013
Budgeted Amounts
Original Final
Budget Budget Actual
Variance with
Final Budget
Positive
(Negative)
$ 3,775,360
$ 3,775,360
3,717,782
$ (57,578)
3,271,080
3,271,080
3,053,711
(217,369)
1,236,190
1,236,190
1,244,971
8,781
5,190,000
5,190,000
5,168,184
(21,816)
293,000
293,000
313,604
20,604
13,765,630
13,765,630
13,498,252
(267,378)
-
-
7,483
7,483
413,438
413,438
741,412
327,974
-
-
100,000
100,000
46,385
61,625
512,975
451,350
459,823
475,063
1,361,870
886,807
198,600
198,600
208,205
9,605
50,000
50,000
56,017
6,017
294,620
294,620
126,349
(168,271)
543,220
543,220
390,571
(152,649)
155,125
155,125
122,912
(32,213)
-
-
110,863
110,863
375,000
375,000
497,969
122,969
530,125
530,125
731,744
201,619
-
-
60,731
60,731
100,000
100,000
85,289
(14,711)
1,402,900
1,402,900
1,340,994
(61,906)
- - (1,230,526) (1,230,526)
318,250 318,250 386,913 68,663
17,119,948 17,135,188 16,625,838 (570,081)
(Continued)
See accompanying note to the required supplementary information.
56
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
(CONTINUED)
Year Ended June 30, 2013
City clerk
Personnel
429,968
434,899 430,662
4,237
Variance with
55,300
Budgeted Amounts
13,054
Final Budget
1,000
Original
Final
Total city clerk
Positive
518,843 500,552
Budget
Budget
Actual
(Negative)
Expenditures:
Finance:
City attorney:
Current:
Personnel
431,855
Operations and maintenance
500,600
General government
540,415
185
Total city attorney
500,600
City council:
540,415
185
-
-
Personnel
$ 250,025
$ 254,123
237,101
$ 17,022
Operations and maintenance
12,100
13,100
8,290
4,810
Capital
1,000
1,000
-
1,000
Total city council
263,125
268,223
245,391
22,832
City clerk
Personnel
429,968
434,899 430,662
4,237
Operations and maintenance
55,300
82,944 69,890
13,054
Capital
1,000
1,000 -
1,000
Total city clerk
486,268
518,843 500,552
18,291
City manager
Personnel
476,642
447,188
440,695
6,493
Operations and maintenance
30,870
63,726
45,150
18,576
Capital
1,000
2,150
2,147
3
Total city manager
508,512
513,064
487,992
25,072
Finance:
City attorney:
(Continued)
Personnel
431,855
Operations and maintenance
500,600
540,600
540,415
185
Total city attorney
500,600
540,600
540,415
185
Administration
Personnel
618,057
774,217
721,246
52,971
Operations and maintenance
7,871
21,171
21,183
(12)
Capital
1,000
1,000
-
1,000
Total administration
626,928
796,388
742,429
52,959
Finance:
(Continued)
Personnel
431,855
523,742
478,491
45,251
Operations and maintenance
150,577
135,577
117,091
18,486
Capital
-
-
-
-
Total finance
582,432
659,319
595,582
63,737
Information services
Personnel
430,568
432,639
403,407
29,232
Operations and maintenance
454,250
532,056
438,276
93,780
Capital
50,000
85,835
74,900
10,935
Total information services
934,818
1,050,530
916,583
133,947
(Continued)
See accompanying note to the required supplementary information.
57
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
(CONTINUED)
Year Ended June 30, 2013
Economic Development
Personnel
339,588
510,229
446,636
Variance with
Operations and maintenance
Budgeted Amounts
191,946
Final Budget
9,803
Original
Final
702,175
Positive
73,396
Budget
Budget
Actual
(Negative)
Public information & com. relations:
Operations and maintenance
$ 146,500
$ 146,500
$ 97,779
$ 48,721
Total information & com. Relations
146,500
146,500
97,779
48,721
General government:
Personnel
1,074,363
1,076,483
960,519
115,964
Operations and maintenance
1,368,975
1,374,953
1,324,485
50,468
Capital
5,000
5,000
1,616
3,384
Total general government
2,448,338
2,456,436
2,286,620
169,816
Special programs:
Operations and maintenance
871,165
977,007
900,059
76,948
Total special programs
871,165
977,007
900,059
76,948
Planning:
Personnel
808,989
620,221
562,788
57,433
Operations and maintenance
60,546
157,700
79,887
77,813
Total planning
869,535
777,921
642,675
135,246
Building and safety:
Personnel
534,872
537,254
535,158
2,096
Operations and maintenance
28,450
36,950
36,952
(2)
Total building and safety
563,322
574,204
572,110
2,094
Mandated programs:
Operations and maintenance
12,500
12,500
5,118
7,382
Total mandated programs
12,500
12,500
5,118
7,382
Regional plan and implementation
Operations and maintenance
103,100
103,186
151,185
(47,999)
Total regional plan and implementation
103,100
103,186
151,185
(47,999)
Tourism and marketing
Personnel
164,247
165,338
164,352
986
Operations and maintenance
836,392
926,094
904,048
22,046
Total tourism and marketing
1,000,639
1,091,432
1,068,400
23,032
Economic Development
Personnel
339,588
510,229
446,636
63,593
Operations and maintenance
182,746
191,946
182,143
9,803
Total economic development
522,334
702,175
628,779
73,396
Total general government
10,440,116
11,188,328
10,381,669
805,659
(Continued)
See accompanying
note to the required
supplementary information.
58
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
(CONTINUED)
Year Ended June 30, 2013
Public safety:
Code compliance:
Personnel
Operations and maintenance
Total code compliance
Emergency services:
Personnel
Operations and maintenance
Total emergency services
Police services:
Operations and maintenance
Capital
Total police services
Citizens Option for Public Safety (COPS)
Operations and maintenance
Total COPS
ACBCI Tourism Fee
Operations and maintenance
Total law enforcement equipment
Total public safety
Public works:
Facilities & fleet maintenance:
Personnel
Operations and maintenance
Total buildings and landscaping
Street maintenance:
Personnel
Operations and maintenance
Capital
Total street maintenance
Engineering:
Personnel
Operations and maintenance
Total engineering
Total public works
560,014 603,267 599,444 3,823
725,950 878,436 625,658 252,778
1,285,964 1,481,703 1,225,651 256,052
548,203 565,960 565,943 17
403,600 403,600 332,307 71,293
YD 1,buJ Y0Y,Dou 6Y6,LJV /1,J 1V
1,456,800 1,332,962 1,322,382 10,580
58,612 58,612 53,114 5,498
1,515,412 1,391,574 1,375,496 16,078
3,753,179 3,842,837 3,499,397 343,440
(Continued)
See accompanying note to the required supplementary information.
59
Variance with
Budgeted
Amounts
Final Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
$ 514,642
$ 471,216
465,316
$ 5,900
84,700
84,700
70,275
14,425
599,342
555,916
535,591
20,325
25,140
25,934
29,339
(3,405)
97,210
137,241
71,990
65,251
122,350
163,175
103,188
59,987
5,873,575
6,026,291
5,986,557
39,734
-
-
70,413
(70,413)
5,873,575
6,026,291
6,056,970
(30,679)
-
100,000
100,000
-
-
100,000
100,000
-
26,000
26,000
24,211
1,789
26,000
26,000
24,211
1,789
6,621,267
6,871,382
6,819,960
51,422
560,014 603,267 599,444 3,823
725,950 878,436 625,658 252,778
1,285,964 1,481,703 1,225,651 256,052
548,203 565,960 565,943 17
403,600 403,600 332,307 71,293
YD 1,buJ Y0Y,Dou 6Y6,LJV /1,J 1V
1,456,800 1,332,962 1,322,382 10,580
58,612 58,612 53,114 5,498
1,515,412 1,391,574 1,375,496 16,078
3,753,179 3,842,837 3,499,397 343,440
(Continued)
See accompanying note to the required supplementary information.
59
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
(CONTINUED)
Year Ended June 30, 2013
Capital projects:
Capital improvements financed from
fund balance and license tax:
General Fund Capital Projects
License Tax Fund Capital Projects
PEG Channel Capital Projects
Total capital improvements
Total capital projects
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources:
Transfers in
Transfers out
Total other financing sources
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
21,568,029
(4,448,081)
24,036,793
(6,901,605)
21,775,523
(5,149,685)
2,260,277
(2,830,358)
4,924,430 5,021,274 4,408,672 (612,602)
(687,754) (390,338) (887,643) (497,305)
4,236,676 4,630,936 3,521,029 (1,109,907)
(211,405) (2,270,669) (1,628,656) 642,013
80,629,040 76,543,644 81,515,749 (4,972,105)
$ 80,417,635 $ 74,272,975 $ 79,887,093 $ 5,614,118
See accompanying note to the required supplementary information.
60
Variance with
Budgeted Amounts
Final Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
$ 269,407
$ 514,076
$ 1,015,959
$ (501,883)
484,060
1,596,474
34,849
1,561,625
-
23,696
23,689
7
753,467
2,134,246
1,074,497
1,059,749
753,467
2,134,246
1,074,497
1,059,756
21,568,029
(4,448,081)
24,036,793
(6,901,605)
21,775,523
(5,149,685)
2,260,277
(2,830,358)
4,924,430 5,021,274 4,408,672 (612,602)
(687,754) (390,338) (887,643) (497,305)
4,236,676 4,630,936 3,521,029 (1,109,907)
(211,405) (2,270,669) (1,628,656) 642,013
80,629,040 76,543,644 81,515,749 (4,972,105)
$ 80,417,635 $ 74,272,975 $ 79,887,093 $ 5,614,118
See accompanying note to the required supplementary information.
60
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
(CONTINUED)
Year Ended June 30, 2013
The following schedule shows the Budgetary Comparison Statement reconciliation between the budgetary basis
and GAAP basis for the General Fund fund:
Revenues and Other Financing Sources
Revenues from the Budgetary Comparison Schedule
Revenues of the Traffic Safety fund and the Community Facilities District fund
are not inflows of budgetary resources in the General fund legally adopted
budget, but are revenues of the General fund for financial reporting purposes.
Total Revenues from the Financial Statements
Transfers In from the Budgetary Comparison Schedules
Elimination of Transfers within General Fund
in accordance with GASB 54 consolidation
Total Transfers in from the Financial Statements
Expenditures and Other Financing Uses
Expenditures and Other Financing Uses from
the Budgetary Comparison Schedules
Reclassification of Special Revenue Funds
to General Fund in accordance with GASB 54
Total Expenditures and Other Financing Uses from
the Financial Statements
General Fund
$
16,625,838
3,380,942
$
20,006,780
$
4,408,672
(2,878,590)
$
1,530,082
$
22,663,166
31,507
$
22,694,673
See accompanying note to the required supplementary information.
61
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
LIBRARY SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Intergovernmental
Charges and services
Fines and forfeitures
Interest income
Net increase (decrease) in
investment fair value
Miscellaneous
Total revenues
Expenditures:
Current
Cultural and recreation
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
$ 175,000 $ 175,000 $
60,000 60,000
48,200 48,200
Variance with
Final Budget
Positive
Actual (Negative)
- $ (175,000)
408 408
51,476 (8,524)
28,733 (19,467)
- - (38,707) (38,707)
43,350 43,350 98,167 54,817
326,550 326,550 140,077 (186,473)
2,831,298 2,858,916 2,676,011 182,905
(2,504,748) (2,532,366) (2,535,934) (3,568)
2,158,344 2,158,344 2,674,997 516,653
(37,234) (37,234) (37,234) -
2,121,110 2,121,110 2,637,763 516,653
(383,638) (411,256) 101,829 513,085
2,242,070 1,938,488 2,726,406 787,918
$ 1,858,432 $ 1,527,232 $ 2,828,235 $ 1,301,003
See accompanying note to the required supplementary information.
62
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
LIBRARY SPECIAL REVENUE FUND
(CONTINUED)
Year Ended June 30, 2013
Library Special
Revenue Fund
Revenues and Other Financing Sources
Revenues from the Budgetary Comparison Schedule $ 140,077
Resources transferred from the Community Services District are not inflows of
budgetary resources in the Library fund legally adopted budget, but are revenues
of the Library fund for financial reporting purposes in accordance with GASB 54. 2,619,302
Total Revenues from the Financial Statements $ 2,759,379
Transfers In from the Budgetary Comparison Schedules 2,674,997
Elimination of Transfers within Library Fund
in accordance with GASB 54 consolidation (2,604,923)
Total Transfers in from the Financial Statements $ 70,074
Expenditures and Other Financing Uses
Expenditures and Other Financing Uses from
the Budgetary Comparison Schedule $ 2,713,245
Reclassification of Special Revenue Funds
to Library Fund in accordance with GASB 54 14,529
Total Expenditures and Other Financing Uses from
the Financial Statements $ 2,727,774
See accompanying note to the required supplementary information.
63
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
FIRE TAX SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Charges for services
Interest income
Net increase (decrease) in
investment fair value
Total revenues
Expenditures:
Current:
Public safety
Capital projects
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Total other financing sources (uses)
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 15,000 $ 15,000 $ 16,250 $ 1,250
5,000 5,000 4,426 (574)
- - (5,777) (5,777)
20,000 20,000 14,899 (5,101)
5,025,300 5,025,300 4,714,518 310,782
2,000 94,259 - 94,259
5,027,300 5,119,559 4,714,518 405,041
(5,007,300) (5,099,559) (4,699,619) 399,940
5,007,300 5,007,300 4,995,793 (11,507)
5,007,300 5,007,300 4,995,793 (11,507)
(92,259) 296,174 388,433
172,211 172,211 432,169 (259,958)
$ 172,211 $ 79,952 $ 728,343 $ 648,391
Revenues and Other Financing Sources
Revenues from the Budgetary Comparison Schedule
Resources transferred from the Community Services District are not inflows of
budgetary resources in the Fire Tax fund legally adopted budget, but are revenues
of the Fire Tax fund for financial reporting purposes in accordance with GASB 54.
Total Revenues from the Financial Statements
Transfers In from the Budgetary Comparison Schedules
Elimination of Transfers within Fire Tax Fund
in accordance with GASB 54 consolidation
Total Transfers in from the Financial Statements
See accompanying note to the required supplementary information.
64
Fire Tax Fund
$ 14,899
5,681,497
$ 5,696,396
4,995,793
(4,091,283)
$ 904,510
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Intergovernmental
Licenses and permits
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 (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
2,671,523 2,715,926 2,201,997 513,929
75,500 79,800 6,589 73,211
2,747,023 2,795,726 2,208,586 587,140
2,782,721 2,734,018 (502,680) (3,236,698)
330,930 330,930 - (330,930)
(1,806,671) (1,806,671) (1,554,694) 251,977
(1,475,741) (1,475,741) (1,554,694) (78,953)
1,306,980 1,258,277 (2,057,374) (3,315,651)
23,343,831 19,650,192 18,222,249 1,427,943
$ 24,650,811 $ 20,908,469 $ 16,164,875 $ (4,743,594)
See accompanying note to the required supplementary information.
65
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ -
$ -
$ 44,363
$ 44,363
4,500
4,500
4,480
(20)
1,478,000
1,478,000
1,453,281
(24,719)
135,250
135,250
119,625
(15,625)
-
-
(119,356)
(119,356)
3,911,994
3,911,994
203,513
(3,708,481)
5,529,744
5,529,744
1,705,906
(3,823,838)
2,671,523 2,715,926 2,201,997 513,929
75,500 79,800 6,589 73,211
2,747,023 2,795,726 2,208,586 587,140
2,782,721 2,734,018 (502,680) (3,236,698)
330,930 330,930 - (330,930)
(1,806,671) (1,806,671) (1,554,694) 251,977
(1,475,741) (1,475,741) (1,554,694) (78,953)
1,306,980 1,258,277 (2,057,374) (3,315,651)
23,343,831 19,650,192 18,222,249 1,427,943
$ 24,650,811 $ 20,908,469 $ 16,164,875 $ (4,743,594)
See accompanying note to the required supplementary information.
65
CITY OF RANCHO MIRAGE
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
Year Ended June 30, 2013
NOTE 41 — BUDGETARY 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. On a
budgetary basis, expenditures exceeded appropriations in the General fund for the operations and maintenance
object in building and safety and regional plan and implementation. Expenditures exceeded appropriations in
the General fund for the capital object for police services and capital projects. Expenditures exceeded
appropriations in the General fund for transfers out. Expenditures exceeded appropriations in the Parkland
fund.
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 (including the Joint Powers Financing
Authority Debt Service Fund) because effective budgetary control is alternatively achieved through debt
indenture provisions.
8. Budgets for General, Special Revenue, 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.
Fund activity consolidated in accordance with GASB Statement No. 54 in the financial statements is excluded
from the Budgetary Comparison Schedules. Transfers eliminated by the consolidation in the financial
statements are reported as transfers in the Budgetary Comparison Schedule.
66
CITY OF RANCHO MIRAGE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2013
Liabilities and fund balances
Liabilities:
Accounts payable $ 255,045 $ - $ - $ 255,045
Accrued salaries and benefits 2,942 - - 2,942
Deposits payable 3,515 - - 3,515
Total liabilities 261,502 - - 261,502
Fund balances:
Restricted 14,651,987 397,993 - 15,049,980
Assigned - - 3,491,600 3,491,600
Total fand balance 14,651,987 397,993 3,491,600 18,541,580
Total liabilities and fund
balances $ 14,913,489 $ 397,993 $ 3,491,600 $ 18,803,082
67
Special
Debt
Capital
Total Nonmaj or
Revenue
Service
Projects
Governmental
Funds
Fund
Funds
Funds
Assets:
Cash and investments
$ 14,466,272
$ -
$ 3,491,108
$ 17,957,380
Cash and investments with fiscal agent
100,487
397,993
-
498,480
Interest receivable
2,007
-
492
2,499
Accounts receivable
78,306
-
-
78,306
Due from other governments
266,417
-
-
266,417
Total assets
$ 14,913,489
$ 397,993
$ 3,491,600
$ 18,803,082
Liabilities and fund balances
Liabilities:
Accounts payable $ 255,045 $ - $ - $ 255,045
Accrued salaries and benefits 2,942 - - 2,942
Deposits payable 3,515 - - 3,515
Total liabilities 261,502 - - 261,502
Fund balances:
Restricted 14,651,987 397,993 - 15,049,980
Assigned - - 3,491,600 3,491,600
Total fand balance 14,651,987 397,993 3,491,600 18,541,580
Total liabilities and fund
balances $ 14,913,489 $ 397,993 $ 3,491,600 $ 18,803,082
67
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Year Ended June 30, 2013
Revenues:
Taxes
Intergovernmental
Charges for services
Special assessments
Developer fees
Interest income
Net increase (decrease)in
investment fair value
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public works
Cultural and recreation
Capital projects
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Special Debt Capital Total Nonmaj or
Revenue Service Projects Governmental
Funds Fund Funds Funds
$ 828,392 $ - $ - $ 828,392
492,347 - - 492,347
177,275 - - 177,275
952,562 - - 952,562
- - 272,751 272,751
235,676 5,237 55,680 296,593
(214,493) (11,780) (31,583) (257,856)
180,478 390,483 25,926 596,887
2,652,237 383,940 322,774 3,358,951
362,898
- 8,051 370,949
715,314
- - 715,314
510,016
- - 510,016
184,144
- - 184,144
- 185,000 27,187 212,187
- 205,483 - 205,483
1,772,372 390,483 35,238 2,198,093
879,865 (6543) 287,536 1,160,858
50,340 - - 50,340
(75,435) - - (75,435)
(25,095) - - (25,095)
854,770 (6,543) 287,536 1,135,763
13,797,217 404,536 3,204,064 17,405,817
$ 14,651,987 $ 397,993 $ 3,491,600 $ 18,541,580
68
NONMAJOR SPECIAL REVENUE FTINDS
Special revenue funds are used to account for and report the proceeds of specific revenue sources that are
restricted or committed to expenditure for specified purposes other than debt service or capital projects.
The Landscape and Lighting District Fund — is used to account for the revenues and expenditures restricted for the
maintenance of landscaped streets and medians and the City's street lighting.
The Parkland Fund — is used to account for the revenues and expenditures restricted for the City's park and
recreation facilities.
The Library Foundation Fund — is used to account for the revenues and expenditures restricted for the raising
funds on the Library's behalf.
The Gas Tax Fund — is used to account for the state gasoline tax revenues restricted for maintenance and
improvement of the City's street.
The AB 939 Recycling Programs Fund — is used to account for the revenues and expenditures restricted for to
regional solid waste management programs.
The Transportation Measure A Fund — is used to account for Measure A sales tax revenue restricted for the
maintenance and improvement of City streets.
The Air Pollution Reduction Fund — is used to account for revenues and expenditures restricted for air pollution
mitigation efforts.
The Rent Control Fund — is used to account for funds collected from mobilehome park owners and restricted to
provide professional assistance on their behalf.
The Storm Water Quality Fund — is used to account for revenues and expenditures restricted for the reduction of
water pollution.
69
CITY OF RANCHO MIRAGE
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
June 30, 2013
70
Landscape
and Lighting
Parkland
Library
Districts
Fund
Foundation
Gas Tax
Assets:
Cash and investments
$
321,478
$
3,555,720
$
1,880,238
$
1,670,851
Cash and investments
with fiscal agent
-
-
100,487
-
Interest receivable
42
500
256
231
Accounts receivable
-
-
670
-
Due from other governments
25,357
12,429
-
3,299
Total assets
$
346,877
$
3,568,649
$
1,981,651
$
1,674,381
Liabilities and Fund Balances
Liabilities:
Accounts payable
$
25,761
$
41,976
$
858
$
(76)
Accrued salaries and benefits
-
2,942
-
-
Deposits payable
-
3,515
-
-
Total liabilities
25,761
48,433
858
(76)
Fund Balances:
Restricted
321,116
3,520,216
1,980,793
1,674,457
Total fund balance
321,116
3,520,216
1,980,793
1,674,457
Total liabilities and fund balances
$
346,877
$
3,568,649
$
1,981,651
$
1,674,381
70
AB 939
Recycling Transportation Air Pollution
Programs Measure A Reduction
$ 3,355,842 $ 3,236,207 $ 183,869 $
Total Nonmajor
Rent Storm Water Special Revenue
Control Quality Funds
19,076 $ 242,991 $ 14,466,272
- - - - 100,487
476 434 26 3 39 2,007
72,107 5,529 - - 78,306
5,000 220,332 - - - 266,417
$ 3,433,425 $ 3,456,973 $ 189,424 $ 19,079 $ 243,030 $ 14,913,489
$ 6,313 $ 73,814 $ 99,957 $ $ 6,442 $ 255,045
- - - - 2,942
- - - - 3,515
6,313 73,814 99,957 6,442 261,502
3,427,112
3,383,159
89,467
19,079
236,588
14,651,987
3,427,112
3,383,159
89,467
19,079
236,588
14,651,987
$ 3,433,425 $
3,456,973 $
189,424 $
19,079 $
243,030
$ 14,913,489
71
CITY OF RANCHO MIRAGE
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
Year Ended June 30, 2013
Landscape
and Lighting Parkland Library
Districts Fund Foundation
Revenues:
Taxes
Intergovernmental
Charges for services
Special assessments
Interest income
Net increase (decrease)
in investment fair value
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public works
Cultural and recreation
Capital projects
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
540,164 412,398
3,352 57,951
- (55,258)
543,516 415,091
36,983
(35,763)
178,371
179,591
Gas Tax
417,379
25,058
(19,848)
422,589
- 112,408 - 6,371
419,520 - - 70,741
- 266,394 243,622 -
- 54,019 - -
419,520 432,821 243,622 77,112
123,996 (17,730) (64031) 345,477
6,051 43,217 - -
(38,201) (37,234) - -
(32150) 5,983 - -
91,846 (11,747) (64,031) 345,477
229,270 3,531,963 2,044,824 1,328,980
$ 321,116 $ 3,520,216 $ 1,980,793 $ 1,674,457
72
AB 939
Recycling
Transportation
Air Pollution
Programs
Measure A
Reduction
$ -
$ 828,392
$ - $
5,000
43,446
26,522
175,005
-
-
56,122
47,192
2,985
Total Nonmaj or
Rent Storm Water Special Revenue
Control Quality Funds
- $ - $ 828,392
- 492,347
2,270 - 177,275
- - 952,562
293 5,740 235,676
(53,384) (42,742) - - (7,498) (214,493)
2,107 - - - - 180,478
184,850 876,288 29,507 2,563 (1,758) 2,652,237
63,826 - 109,308 24 70,961 362,898
136,102 - - - 88,951 715,314
- - - - - 510,016
- 130,125 - - - 184,144
199,928 130,125 109,308 24 159,912 1,772,372
(15,078) 746,163 (79,801) 2,539 (161,670) 879,865
- - - - 1,072 50,340
- - - - - (75,435)
- - - - 1,072 (25,095)
(15,078) 746,163 (79,801) 2,539 (160,598) 854,770
3,442,190 2,636,996 169,268 16,540 397,186 13,797,217
$ 3,427,112 $ 3,383,159 $ 89,467 $ 19,079 $ 236,588 $ 14,651,987
73
100& e]0;al.ctj:111011;axeD1
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE AND LIGHTING DISTRICTS
NONMAJOR SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Special assessments
Interest income
Total revenues
Expenditures:
Current:
Public works
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
74
520,717
419,520
Variance with
Final Budget
Final
123,996
Positive
Budget
Actual
(Negative)
$ 538,208
$ 540,164
$ 1,956
306
3,352
3,046
538,514
543,516
5,002
520,717
419,520
10 1, 197
17,797
123,996
106,199
6,051
6,051
-
(38,201)
(38,201)
(32,150)
(32,150)
(14,353)
91,846
106,199
880
229,270
(228,390)
$ (13,473) $
321,116
$ 334,589
BUDGETARY COMPARISON SCHEDULE
PARKLAND
NONMAJOR SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Special assessments
Interest income
Net increase (decrease) in
investment fair value
Total revenues
Expenditures:
Current:
General government
Cultural and recreation
Capital projects
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
Fund balance, beginning of year
Final
Budget
$ 417,518
73,200
Actual
$ 412,398
57,951
Variance with
Final Budget
Positive
(Negative)
$ (5,120)
(15,249)
- (55,258) (55,258)
490,718 415,091 (75,627)
120,690
112,408
8,282
294,149
266,394
27,755
10,977
54,019
(43,042)
414,839
432,821
(7,005)
75,879
(17,730)
(93,609)
43,217 43,217
(37,234) (37,234)
5,983 5,983
69,896 (11,747) (81,643)
3,514,467 3,531,963 (17,496)
Fund balance, end of year $ 3,584,363 $ 3,520,216 $ (64,147)
75
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
LIBRARY FOUNDATION
NONMAJOR SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Interest income
Net increase (decrease) in
investment fair value
Miscellaneous
Total revenues
Expenditures:
Current:
Cultural and recreation
Excess (deficiency) of revenues over (under)
expenditures
Fund balance, beginning of year
Fund balance (deficit), end of year
76
Final
Budget
Actual
Variance with
Final Budget
Positive
(Negative)
$ 36,000 $ 36,983 $ 983
- (35,763) (35,763)
145,300 178,371 33,071
181,300 179,591 (1,709)
303,200 243,622 59,578
(121,900) (64,031) 57,869
1,959,140 2,044,824 (85,684)
$ 1,837,240 $ 1,980,793 $ 143,553
NJ0& e]M;al.ctj:c11011;axeDI
BUDGETARY COMPARISON SCHEDULE
GAS TAX
NONMAJOR SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Intergovernmental
Interest income
Net increase (decrease) in
investment fair value
Total revenues
Expenditures
Current:
General government
Capital projects
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Fund balance, beginning of year
Final
Budget Actual
$ (465,003) $ 417,379
(18,700) 25,058
Variance with
Final Budget
Positive
(Negative)
$ 882,382
43,758
(19,848) (19,848)
(483,703) 422,589 906,292
2,000
6,371 (4,371)
160,443
- 160,443
233,138
77,112 156,026
(716,841)
345,477 1,062,318
167,657 1,328,980 (1,161,323)
Fund balance, end of year $ (549,184) $ 1,674,457 $ 2,223,641
77
100FA c110;al.ctj:111011;axeDI
BUDGETARY COMPARISON SCHEDULE
AB 939 RECYCLING PROGRAMS
NONMAJOR SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Intergovernmental
Charges for services
Interest income
Net increase (decrease) in
investment fair value
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public works
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Fund balance, beginning of year
Final
Budget
180,000
69,800
Actual
$ 5,000
175,005
56,122
Variance with
Final Budget
Positive
(Negative)
$ 5,000
(4,995)
(13,678)
(53,384) (53,384)
- 2,107 2,107
249,800 184,850 (72,057)
125,000
63,826
61,174
141,000
136,102
4,898
266,000
199,928
66,072
(16,200) (15,078) 1,122
3,382,691 3,442,190 (59,499)
Fund balance, end of year $ 3,366,491 $ 3,427,112 $ 60,621
78
100FA c110;al.ctj:111011;axeDI
BUDGETARY COMPARISON SCHEDULE
TRANSPORATION MEASURE A
NONMAJOR SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Taxes
Intergovernmental
Interest income
Net increase (decrease) in
investment fair value
Total revenues
Expenditures:
Capital projects
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Net changes in fund balances
Fund balance, beginning of year
Fund balance, end of year
79
Final
Budget
$ 681,000 $
96,800
Variance with
Final Budget
Positive
Actual (Negative)
828,392 $
147,392
43,446
43,446
47,192
(49,608)
- (42,742) (42,742)
777,800 876,288 98,488
2,248,587 130,125 2,118,462
2,248,587 130,125 2,118,462
(1,470,787) 746,163 2,216,950
(1,470,787) 746,163 2,216,950
3,446,682 2,636,996 809,686
$ 1,975,895 $ 3,383,159 $ 1,407,264
BUDGETARY COMPARISON SCHEDULE
AIR POLLUTION REDUCTION
NONMAJOR SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Intergovernmental
Interest income
Total revenues
Expenditures:
Current:
General government
Excess (deficiency) of revenues over (under)
expenditures
Fund balance, beginning of year
Final
Budget
Variance with
Final Budget
Positive
Actual (Negative)
- $ 26,522 $ 26,522
500 2,985 2,485
500 29,507 29,007
109,310 109,308 2
(108,810) (79,801) 29,009
3,662 169,268 (165,606)
Fund balance, end of year $ (105,148) $ 89,467 $ 194,615
80
CITY OF RANCHO MIRAGE
BUDGETARY COMPARISON SCHEDULE
RENT CONTROL
NONMAJOR SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Charges for services
Interest income
Total revenues
Expenditures:
Current:
General government
Excess (deficiency) of revenues over (under)
expenditures
Fund balance, beginning of year
Fund balance, end of year
81
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
$ 2,000 $ 2,270 $ 270
150 293 143
2,150 2,563 413
2,800 24 2,776
(650) 2,539 3,189
14,426 16,540 (2,114)
$ 13,776 $ 19,079 $ 5,303
BUDGETARY COMPARISON SCHEDULE
STORM WATER QUALITY
NONMAJOR SPECIAL REVENUE FUND
Year Ended June 30, 2013
Revenues:
Special assessment
Interest income
Net increase (decrease)in
investment fair value
Total revenues
Expenditures:
Current:
General government
Public works
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Net changes in fund balance
Fund balance, beginning of year
Final
Budget
Variance with
Final Budget
Positive
Actual (Negative)
$ 93,300 $ - $ (93,300)
12,360 5,740 (6,620)
- (7,498) (7,498)
105,660 (1,758) (107,418)
118,400 70,961 47,439
66,000 88,951 (22,951)
184,400 159,912 24,488
(78,740) (161,670) (82,930)
1,072 1,072
(77,668) (160,598) (82,930)
240,607 397,186 (156,579)
Fund balance, end of year $ 162,939 $ 236,588 $ 73,649
82
NONMAJOR DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources that are restricted, committed, or assigned to
expenditure for principal and interest.
The Joint Powers Financing Authority Fund — is used to account for the debt service transactions of the 2005A Lease
Revenue Bond issue.
83
Assets:
Cash and investments with fiscal agent
Liabilities:
Total liabilities
Fund balances:
Restricted
Total fund balance
Total liabilities and fund balances
BALANCESHEET
NONMAJOR DEBT SEVICE FUND
June 30, 2013
84
Joint Powers
Financing
Authority
$ 397,993
397,993
397,993
S 397,993
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES NONMAJOR DEBT SEVICE FUND
Year Ended June 30, 2013
Joint Powers
Financing
Authority
Revenues:
Interest income $ 5,237
Net increase (decrease)
in investment fair value (11,780)
Miscellaneous 390,483
Total revenues 383,940
Expenditures:
Debt service:
Principal 185,000
Interest 205,483
Total expenditures 390,483
Excess (deficiency) of revenues
over (under) expenditures (6,543)
Total change in fund balances (6,543)
Fund balances, beginning of year 404,536
Fund balances, end of year $ 397,993
85
NONMAJOR CAPITAL PROJECT FUNDS
Capital Project Funds are used to account for resources that are restricted, committed, or assigned to expenditure
for capital outlays.
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 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.
86
Assets
Cash and investments
Interest receivable
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund balances:
Restricted
Total fund balance
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECTS FUNDS
June 30, 2013
Total Nonmajor
Assessment Development Capital Projects
District Fees Funds
135,179 $ 3,355,929 $ 3,491,108
20 472 492
$ 135,199 $ 3,356,401 $ 3,491,600
$ - $
135,199 3,356,401 3,491,600
135,199 3,356,401 3,491,600
Total liabilities and fund balances $ 135,199 $ 3,356,401 $ 3,491,600
87
COMBINING STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECTS FUNDS
Revenues:
Developer fees
Interest income
Net increase (decrease)in
investment fair value
Miscellaneous
Total revenues
Expenditures
Current:
General government
Debt service
Principal
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Fund balances at beginning of year
Year Ended June 30, 2013
Assessment Development
District Fees
Total Nonmajor
Capital Projects
Funds
$ - $ 272,751 $ 272,751
2,172 53,508 55,680
- (31,583) (31,583)
25,926 - 25,926
28,098 294,676 322,774
8,051
8,051
27,187 27,187
35,238 35,238
28,098 259,438 287,536
107,101 3,096,963 3,204,064
Fund balances, end of year $ 135,199 $ 3,356,401 $ 3,491,600
88
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT FEES
NON -MAJOR CAPITAL PROJECTS FUNDS
Revenues:
Developer fees
Interest income
Net increase (decrease) in
investment fair value
Total revenues
Expenditures:
Current:
General government
Capital projects
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses):
Transfers out
Net changes in fund balances
Fund balances beginning of year
Fund balances, end of year
Year Ended June 30, 2013
3,355
8,051
Variance with
151,656
27,187
Final Budget
Final
35,238
Positive
Budget
Actual
(Negative)
$ 78,000
$ 272,751
$ 194,751
54,367
53,508
(859)
-
(31,583)
(31,583)
132,367
294,676
162,309
3,355
8,051
(4,696)
151,656
27,187
124,469
155,011
35,238
119,773
(22,644)
259,438
282,082
(7,880)
-
7,880
(30,524)
259,438
289,962
2,897,926
3,096,963
(199,037)
$ 2,867,402 $
3,356,401 $
488,999
89
AGENCYFUNDS
Agency Funds are used to account for assets held by the City in a fiduciary capacity for individuals,
governmental entities and others.
The City Agency Fund — is used to account for refundable customer deposits.
The Assessment Districts Funds — is used to account for assessment collections and debt service payments of
assessment districts whose debt is not an obligation of the City.
90
100& e]W;Al.ctj:111011;axeD1
AGENCY FUNDS
COMBINING SCHEDULE OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
Year Ended June 30, 2013
Assets:
Balance at
Balance at
Accounts payable
July 1, 2012
Additions Deductions
June 30, 2013
CITY AGENCY FUND
Cash and investments
$
1,424,023
Assets:
153,012
$
-
Cash and investments
$ 2,532,342
$ 46,408 $ -
$ 2,578,750
Accounts receivable
-
25,000 -
25,000
Total Assets
$ 2,532,342
$ 71,408 $ -
$ 2,603,750
Liabilities:
94
151
Accounts payable
829,126
21,001 -
$ 850,127
Deposits payable
1,703,216
50,407 -
1,753,623
Total Liabilities
$ 2,532,342
$ 71,408 $ -
$ 2,603,750
Assets:
Accounts payable
$ 829,126 $
21,001 $
- $ 850,127
Deposits payable
Cash and investments
$
1,424,023
$
153,012
$
-
$
1,577,035
Cash and investments with fiscal agent
- $ 5,468,227
1,327,956
-
67,145
1,260,811
Interest receivable
94
151
-
245
Due from other governments
38,529
-
12,143
26,386
Total Assets
$
2,790,602
$
153,163
$
79,288
$
2,864,477
Liabilities:
Due to bondholders
2,790,602
73,875
-
2,864,477
Total Liabilities
$
2,790,602
$
73,875
$
-
$
2,864,477
TOTALS -ALL AGENCY FUNDS
Assets:
Cash and investments
$
3,956,365
$
199,420
$
-
$
4,155,785
Cash and investments with fiscal agent
1,327,956
-
67,145
1,260,811
Interest receivable
94
151
-
245
Accounts receivable
-
25,000
-
25,000
Due from other governments
38,529
-
12,143
26,386
Total Assets
$
5,322,944
$
224,571
$
79,288
$
5,468,227
Liabilities:
Accounts payable
$ 829,126 $
21,001 $
- $ 850,127
Deposits payable
1,703,216
50,407
- 1,753,623
Due to bondholders
2,790,602
73,875
- 2,864,477
Total Liabilities
$ 5,322,944 $
145,283 $
- $ 5,468,227
91
STATISTICAL SECTION
This section of the City of Rancho Mirage Annual Financial Reportpresents additional information to assist
annual financial report users in understanding the financial statements, note disclosures, required
supplementary information and assessing the City's overall financial condition.
Contents
Financial Trends — these schedules contain trend information to assist readers in understanding and assessing hour
the City's financial position has changed over time.
Net Position by Component
Changes in Net Position
Fund Balance of Governmental Funds
Changes in Fund Balances of Governmental Funds
Governmental Tax Revenues by Source
Revenue Capacity — these schedules contain information to help the reader assess the City's local revenue
sources.
Assessed value and Estimated Actual Value of Taxable Property
Property Tax Rates, Direct and Overlapping
Principal Property Tax Payers
Property Tax Levies and Collections
Debt Capacity — these schedules present information to help the reader understand and assess the City's current
level of outstanding debt and the City's ability to issued additional debt in the future. Ratio of Outstanding Debt
by Type.
Ratio of General Bonded Debt Outstanding
Direct and Overlapping Debt
Pledged -Revenue Coverage
Demographic and Economic Information — these schedules provide demographic and economic indicators to
help the reader understand the environment within which the City's financial activities take place.
Demographics and Economic Statistics
Principal Employers
Operating Information — these schedules contain service and infrastructure data to help the reader understand
how the information in the report relates to the services the City provides and the activities it performs.
Full-time Equivalent City Government Employees by Function
Operating Indicators by Function
Capital Asset Statistics by Function
92
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Total governmental activities net position $163,56],241 $159,16],986 $15],840,311 $ 183,960,659 $195,093,237 $196,483,604 $188,540,927 $192,209,737 $ 289,012,319 $ 284,197,667
The Ciry ofRancho Msm,,e irrPlemenmd = 34 for p e fiscal year endedJure 30, 2003.
93
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Governmental activities
Netinvestradmin capital assets
$ 62,359,050
$ 59,485,576
$ 57,911,677 $
64,597,727
$ 69,623,504
$ 71,406,020
$ 68,626,495
$ 65,953,653
$ 175,897,018
$ 173,721,979
Restricted for.
Community development
15,998,651
13,978,688
21,649,275
33,771,718
38,537,448
28,647,681
24,008,809
44,549,542
-
-
Publicsafety
90,892
294,125
455,352
514,477
699,795
1,032,317
757,198
328,543
601,437
817,810
Public works
4,271,544
3,686,443
4,018,193
5,511,462
5,574,235
6,176,655
5,296,500
4,427,388
4,878,272
5,236,768
Cultural and recreation
3,892,437
3,948,224
4,379,050
5,328,454
5,600,825
5,786,702
5,962,794
4,869,498
4,771,380
4786,108
Unrestricted
76 954
77774 930
69366764
74230761
75 057430
83434 229
83 889131
72 081113
102 864212
99 635 002
Total governmental activities net position $163,56],241 $159,16],986 $15],840,311 $ 183,960,659 $195,093,237 $196,483,604 $188,540,927 $192,209,737 $ 289,012,319 $ 284,197,667
The Ciry ofRancho Msm,,e irrPlemenmd = 34 for p e fiscal year endedJure 30, 2003.
93
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Me, Position I De"o-, of's, a restated
94
Fiscal
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
increases
Governmental activities:
General govamv®t
9,900755
14,122,076
16,020796
14,046,413
16,021,000
22,510,096
14,475,006
16,130,779
16,759,019
13,460,932
Public safety
0377,060
0,635$06
10$67,063
9,993,457
10,201,495
10,446,535
11,129,693
11,099,224
11,171,051
11,617,269
Public works
16,40,104
17,056,040
19,164,023
3,606,363
12,040,334
13,393,370
12,066,325
11,513,164
0,040,101
6,416,177
Cultural and beer®tion
4,314,325
5,663,369
5,495,094
3,60,093
3,964,094
4,322,600
4,324,325
3,062,141
3,911,001
3,737,506
later.onlong-tam debtand other charges
9,700,900
0,956,761
9,471,741
7,324379
7,972,330
9,764527
9,067,233
0,349,094
4,690367
140670
Total governmental activities expenses
40696240
55 234 632
60 720 317
30500505
50 200 133
60 445 944
51063302
50954402
45302099
35300562
Program revences
G ovarnmenial acovities:
Charges Nrsavices:
General government
4,167,240
3,570,266
2,570932
3,630,043
3,061,157
2,016,132
2,371900
1,030,620
2,513,900
2,709,596
Public safety
1,219,909
1,763,230
314,647
464,416
315,042
313,223
329,003
165,323
143,233
133,530
Public works
1,225$10
1,344,000
1,032,052
1,294,500
1,110,051
1,302936
904,420
521,016
505,000
310,201
Cultural and re¢®ti on
563,405
600,510
704,402
1,006,451
606,272
513,053
490,673
926,230
522,701
495,635
Operating grants& Contributions
3,951,392
4,023,635
4,002,592
2,500,029
2,049,755
2,003,031
3,701,209
2,439,021
2,00,306
064,205
Capita Gants and Contnbuttions
2,199,110
2,320,720
703,715
776,047
797,410
97,179
1,045,253
3,366,193
1,440,706
936,367
To. governmental activities pmgramrevenues
13 326 522
13 930 465
10420420
9769900
0000407
7 127 154
0051250
9250019
7 232 094
5 597 614
Total net revenues (expenses)
(35,369,710)
(41,304,167)
(50,291,097)
(20,010,525)
(41,319,646)
(53,310,790)
(42,212,124)
(41,696,303)
(30150005)
(29,790940)
General revenuesand Gtherchanges in ndassets:
rates
PmpMytab:es
15,50,760
10,393,096
21,310,150
23,530553
22,366,930
23,061913
11,340,522
26,203,195
15,227,250
4,571,549
Transient ocwpanry taxes
5,140725
5,644962
5,035,222
5,176,030
5,157,302
4,634,439
3,092,316
4,609,994
5,356,152
5,606,679
Sales do,
4,102,009
3,905,310
5,061,699
5,545,232
5,515,465
4470,537
3,,772,259
3,790,245
3,970,239
3,002,102
Franchise taxes
921,516
970,997
1,060531
1,246,691
1,222750
1,240960
1,190$50
1,223,039
1,239,565
1,244,971
MotorveNtl e in lieu
722,707
396,045
107,131
96,326
71,072
62,110
50,309
70,511
17,612
7,403
Library and fire services
3,700,066
4,140,420
7,053,904
7,770959
7,924,540
0997,464
0955760
4,597,922
7,702,636
10,039,639
Otherrates
219,309
-
222,057
265,511
-
-
-
-
-
-
hisestmentincome, net ofincrease (tleer®s)
970,695
3,614720
5,369,317
0,660,601
9,199944
10$17770
4,649,457
1,06,120
2$11,476
154,797
in fair value
Other general revenues
1,150,065
99,290
2,120,117
2,622,002
994,205
444,430
410,157
264,503
403,140
032,364
To. general revenues
32,445,300
31,254456
40964222
549305/3
52,452,224
54,229,639
34,269,426
41,004,417
36,360,006
26,339,504
Extraordinary gaindissolutionof retlevelopment agency
90,551,200
Ct¢ngesinnetp Galion
(2,924,410)
(4,049711)
(1,327,675)
26,120,340
11,132,510
910,049
(,942,690)
100,04
96769,209
(3,451,364)
Netpositionatbe®mangGfy®r
166,491,659
163,217,697
159,167906
157,040311
103,960,659
195,572755
196,403,604
192,054,996
192,243,030
207,649,031
Net position at end Gfy®r
163,567,241
159,161906
151,040,311
103,960,659
195,093,237
196,403,604
100540906
192,243,030
Hot 12,319
204197,667
Me, Position I De"o-, of's, a restated
94
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
General fund:
Reserved $
11,328,484
23,126,831
10,282,294
3,166,260
4,675,993
Unreserved
57,598,268
47,964,792
59,668,431
70,702,592
69,926,834
Nonspendable
-
-
-
-
-
Restricted
-
-
-
-
-
Committed
-
-
-
-
-
Assigned
-
-
-
-
-
Unassigned
-
-
-
-
-
Total general fund
68,926,752
71,091,623
69,950,726
73,868,852
74,602,827
All other governmental funds:
Reserved for:
16,683,240
28,954,387
42,257,425
9,874,200
10,364,020
Unreserved
114,145,614
88,599,418
64,672,631
108,008,823
112,690,874
Nonspendable
-
-
-
-
-
Restricted
-
-
-
-
-
Committed
-
-
-
-
-
Assigned
-
-
-
-
-
Unassigned
-
-
-
-
-
Total all other governmental funds
130,828,854
117,553,805
106,930,056
117,883,023
123,054,894
Total all governmental funds $
199,755,606
188,645,428
176,880,782
191,751,875
197,657,721
181,337,908
120,097,388
118,392,902
Fiscal Year
Annual
Financial Report
General fund:
Reserved $
5,593,358
3,845,244
-
-
-
Unreserved
69,897,603
71,868,997
-
-
-
Nonspendable
-
-
30,672
1,528,746
1,457,427
Restricted
-
-
-
-
-
Committed
-
-
-
-
69,050,503
Assigned
-
-
16,915,572
10,442,621
-
Unassigned
-
-
63,371,942
69,339,232
9,644,859
Total general fund
75,490,961
75,714,241
80,318,186
81,310,599
80,152,789
All other governmental funds:
Reserved for:
20,467,678
47,655,357
-
-
Unreserved
115,814,760
67,716,094
-
-
Nonspendable
-
-
1,500,000
Restricted
-
-
63,746,097
35,582,727
34,748,513
Committed
-
-
-
-
Assigned
-
-
35,773,625
3,204,062
3,491,600
Unassigned
-
-
-
-
Total all other governmental funds
136,282,438
115,371,451
101,019,722
38,786,789
38,240,113
Total all governmental funds $
211,773,399
191,085,692
181,337,908
120,097,388
118,392,902
Source: City of Rancho Mirage Comprehensive
Annual
Financial Report
Note: Beginning in FY 2011, the fund balance classification changed to be consistent with GASB 54.
95
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Z
2004
2005
2006
2001
2008
2009
2010
2011
2012
2013
Revenues
Taxes
41,450,39]
42,619,827
49,388,634
52,501,941
54,051,951
53,383,125
50758,411
49,672,270
32,941,333 $
16,919,360
Intergovernmental
5,352,333
7,365,464
8,265,208
4,102,702
2,746,203
3,559,677
4,211,049
6,696,101
4,827,425
4,66069]
Licenses and permits
1,862,830
1,463,437
995,315
947,946
765,36]
486,475
572,770
518,496
518,934
395,051
Charges for services
4,341,048
3,470,340
1,654,878
1,746,194
1,640,288
1,024,703
770,791
725,56]
2,171,134
2,378,958
Eines and forfeitures
160,400
132,682
134,049
134,272
198,482
183,012
245,966
228,588
220,7&]
172,006
Sp ecial Assessments
1,810,415
1,821,072
4,245,759
4,700,393
4,4&1,852
5,106,451
5,282,158
4,958,580
5,837,585
5,637,368
Dev el, er fees
139,100
1,273,513
938,563
1,070,096
6&],465
228,596
579,666
56,555
122,714
333,482
Interest income
4,198,425
5,621,024
6,412,795
7,737,975
9,145,830
8,055,417
5,001,086
3,251,024
2,368,457
1,807,018
Net increase (decrease) N mveshnent
fairvalue
(3,104,659)
(333,530)
(881,240)
1,986,792
1,410,358
2,449,650
(453,191)
(2,214,896)
3,018
(1,652,222)
Proceeds from property owner debt
-
-
-
-
-
-
-
-
-
Miscellaneous
1,264,26]
848,176
1,614,856
1,242,349
2,088,229
1,998,920
2,017,618
6,934,021
1,158,773
1,285,480
Total revenues
57,474,556
64,282,005
72,768,817
76,170,660
77,219,025
76,476,026
68,986,324
70,826,306
50,170,160
31,937,198
Expenditures
Current
General goveruccent
9,758,475
13,515,26]
12,615,962
13,532,684
15,135,511
21,512,236
13,934,223
14,653,460
16,250,447
12,986,122
Public safety
8,294,837
8,581,486
8,778,261
9,857,575
10,053,423
10,307,877
10,978,437
11,173,201
11,128,163
11,534,478
Public works
3,551,465
3,656,569
3,&]3,142
4,121,876
4,261,168
4,751,113
4,162,745
3,858,992
4,206,854
4,214,711
Cultural and recreation
1,933,540
2,198,614
3,311,559
3,224,536
3,449,148
3,835,191
3,799,662
3,581,489
3,403,227
3,223,476
Cap ital TEN Ins
15,904,160
25,856,533
30,311,886
7,449,509
10,085,373
14,544,626
15,839,636
17,794,15]
6,390604
1,292,417
Dbetse, IIs
Principal
1,885,000
2,420,000
3,640000
4,655,000
4,600,000
5,530,000
5,370,000
5,565,000
180,000
185,000
Interest
6,323,322
8,184,449
8,242,037
7,400,495
7,466,786
8,016,544
8,172,156
7,980,036
3,989,310
205,483
Payments under p asstivongh
10,102,734
11,297,084
13,073,751
12,897,644
15,886,314
15,119,233
14,208,932
13,661,996
6,569,870
-
agreernents
Payments for ERAS shift
993,674
1,935,183
1,941,705
-
-
-
12,583,600
2,590741
-
-
Servicefees
2,662,830
677,240
1,458,592
38810&
375,599
950,175
619,636
32,065
25,530
Total expenditures
61,410,037
78,322,425
87,246,895
63,527,406
71,313,322
84,566,995
89,674,027
80,891,137
52,144,005
33,641,6&]
Excess (deficiency) of
over (und )
expenditures
(3,935,481)
(14,040420)
(14,478,078)
12,643,254
5,905,703
(8,090,969)
(206&],703)
(10064,831)
(1,973,845)
(1,704,489)
011ier finaneing sources (uses).
Transfers In
17,512,520
33,145,46]
41,552,009
27,327,117
24,100736
32,839,537
33,736,594
21,000,239
5,533,710
2,555,006
Transfers out
(17,512,520)
(33,145,46])
(41,552,009)
(27,327,117)
(24,100736)
(32,839,537)
(33,736,594)
(21,000,239)
(5,533,710)
(2,555,006)
Proceeds from sale of carnal assets
-
-
1,597,576
2,221,837
-
-
-
-
-
-
Issuance oflong -four debt
61,760,405
5,925,000
49,120,000
-
-
22,040,000
-
317,055
-
-
Prernium(Nsmunt)ov Issuanceofdebt
-
-
1,360,413
-
-
(312,870)
-
-
-
-
Paymenttorefundedbondescrowagent
(3190278)
(49,364,5 55)
Total other financing
sources (uses)
61,760,405
2,734,722
2,713,434
2,227,837
21,727,130
317,055
Extraordinary Itsrt
Dissolution of former Redevelopment Agency
(59,299,969)
Net change in fund b alances
63,824,924
11305698
11764644
14,&11,091
5,905,703
13,636,161
206&1703
974777
61273814 $
(1,704,489)
Debt service as a percentage of
noncapital expenditures
135%
15.2%
15.4%
21.2%
17.1%
162%
183%
21.5%
8 N
1.2%
Thz City ofR xxrho Mirage implemer¢ed
GASB 34 forthe fiscal year vrded
Auxs 30, 2003.
Z
Major Revenue Sources — Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
City
Fiscal Property Tax
Year and RDA Transient Special Developer Licenses & Charges for
End Tax Increment Interest Occupancy Assessments Franchise Fees Permits Services Total
2004
24,396,668
4,198,425
5,148,725
1,810,415
921,876
139,100
1,862,830
2005
27,287,220
5,621,024
5,644,962
1,821,072
970,997
1,273,513
1,463,437
2006
31,446,448
6,414,077
5,877,525
1,968,493
1,068,537
938,563
995,315
2007
34,753,736
7,632,660
5,176,838
4,746,585
1,246,691
1,003,853
947,946
2008
36,541,457
9,145,831
5,157,302
4,506,070
1,222,758
792,234
742,777
2009
37,331,645
8,055,416
4,634,439
5,140,189
1,240,960
290,852
840,823
2010
37,903,311
4,547,895
3,892,316
5,282,157
1,190,558
128,496
368,894
2011
34,988,718
3,251,022
4,302,014
4,958,579
1,223,839
56,554
708,075
2012
26,437,010
2,592,296
4,925,307
5,837,583
1,239,565
122,712
518,935
2013
4,571,549
1,807,018
5,606,679
5,637,368
1,244,971
333,482
395,051
Percentage
change:
2004-2013
-478.3%
-43.5%
12.2%
-3.6%
0.4%
63.2%
-31.4%
Millions
60
50
40
30
20
10
2,497,252 40,975,291
3,470,340 47,552,565
1,654,878 50,363,836
1,085,943 56,594,252
836,550 58,944,979
607,163 58,141,487
837,745 54,151,372
526,296 50,015,098
690,640 42,364,048
814,814 20,410,932
15.2% -107.6%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
■ City & RDA Taxes ■Interest ■ Transient Occupancy Tax O Special Assessments
■Franchise ODeveloper Fees ■Licenses&Permits ■Charges for Services
Tax increment is no longer reported as redevelopment agencies were dissolved in FY 2012
97
CITY OF RANCHO MIRAGE
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Source: Riverside County Auditor -Controller's Office
98
City
Total
Year
Assessed
Less
Less
Taxable
Ended
Secured Unsecured Property
Property
Homeowner's
Assessed
June 30
Pronertv Pronertv Value
Exemptions
Exemptions
Value
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
2008
7,981,900,865 216,748,234 8,198,649,099
355,469,047
32,957,707
7,810,222,345
2009
8,253,540,667 243,632,123 8,497,172,790
392,938,402
33,051,439
8,071,182,949
2010
8,034,046,037 266,075,905 8,300,121,942
232,254,754
32,711,561
8,035,155,627
2011
7,626,463,485 249,847,605 7,876,311,090
483,628,859
32,322,140
7,360,360,091
2012
7,493,838,095 264,159,885 7,757,997,980
566,376,759
31,488,162
7,160,133,059
2013
7,542,777,796 254,154,858 7,796,932,654
617,151,641
30,607,881
7,149,173,132
NOTE:
In 1978 the voters of the State of California passed Proposition
13 which
limited property taxes to a total
maximum rate of 1 % 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
98
CITY OF RANCHO MIRAGE
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years (per $100 of Assessed Value)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
General 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Desert Sands Unified School 0.09581 0.07674 0.07613 0.07561 0.07990 0.07990 0.10036 0.10036 0.11467 0.11156
Palm Springs Unified B, IA
0.05715
0.05012
0.05912
0.05468
0.06007
0.06007
0.13224
0.13224
0.10451
0.09351
Desert Community College
0.01994
0.01995
0.01995
0.01995
0.01995
0.01995
0.01995
0.01995
0.01995
0.01995
Coachella Valley Water
0.02080
0.02080
0.02080
0.04000
0.04000
0.04000
0.08000
0.08000
0.08000
0.08000
District
Coachella Valley Water
0.00020
0.00020
-
0.00090
-
-
-
-
-
-
Improvement District 53
Coachella Valley Water
0.01910
0.01800
0.01800
0.00720
0.00650
0.00650
0.00530
0.05300
-
-
Improvement District 54
Desert Water Agency
0.06000
0.06000
0.06000
0.08000
0.08000
0.08000
0.08000
-
0.08000
0.10000
Total
1.27300
1.24581
1.25400
1.27834
1.28642
1.28642
1.41785
1.38555
1.39913
1.40502
Source: Riverside County Auditor -Controller's Office
99
Principal Property Tax Payers
Current Year and Ten Years Ago
1) 2012-13 Local Secured Assessed Valuation: $7,245,800
2) Taxable property only.
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Coren & Cone
100
2013
2003
Percentof
Percent of
Total City & RDA
Total City & RDA
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Land Use
Value
Value
Value
Value
River Retail
Commercial
$ 88,942,421
0.65%
0.00%
KSL RLP Holdings
Hotel
53,852,027
0.39%
0.00%
Stark RM Eagle
Commercial
48,292,793
0.35%
0.00%
Porkupine Properties
Residential Properties
48,009,350
0.35%
0.00%
Newage Rancho Mirage
Hotel
45,406,177
0.33%
0.00%
Starwood Mission Hills CMBS I
Hotel
44,302,102
0.32%
140,170,908
1.88%
Eisenhower Memorial Hosptial
Hospital
29,976,703
0.22%
56,077,221
0.75%
Eisenhower Properties
Hospital
26,658,051
0.20%
0.00%
ATC Realty One
Commercial
26,082,741
0.19%
0.00%
Mission Hills Country Club
Golf Come / Country Club
25,215,639
0.18%
20,931,995
0.28%
Wallis Annenberg
Residental Properties
25,023,114
0.18%
0.00%
FIT REN Mirage Inn
Hotel
24,650,806
0.18%
0.00%
Thunderbird Terrace
Condominium Complex
18,539,910
0.14%
18,114,279
0.24%
Desert European Motorcars
Commercial
17,115,398
0.13%
0.00%
Hotel Majestic
Hotel
15,555,000
0.11%
0.00%
Nationwide Health Properties
Commercial
15,362,513
0.11%
0.00%
Fin Co Partners
Commercial
14,606,576
0.11%
0.00%
Zelman Rancho Mirage
Commercial
13,317,080
0.10%
0.00%
CHL Retirement MA3 Calif
Rest Home
12,952,376
0.09%
0.00%
Club at Morningside
Golf Come / Country Club
12,480,829
0.09%
0.00%
SHC Rancho
Hotel
-
0.00%
77,512,464
1.04%
Olympus Rancho Mirage
Hotel
-
0.00%
28,425,527
0.38%
Cascada Investments Inc
Land
-
0.00%
15,023,510
0.20%
$ 606,341,606
4.45%
$ 356,255,905
4.77%
1) 2012-13 Local Secured Assessed Valuation: $7,245,800
2) Taxable property only.
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Coren & Cone
100
CITY OF RANCHO MIRAGE
Property Tax Levies and Collections
Last Ten Fiscal Years
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
101
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
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%
1,014,559
34,753,736
105.73%
2008
36,651,002
35,753,415
97.55%
788,042
36,541,457
99.70%
2009
37,854,169
36,597,061
96.68%
742,694
37,339,755
98.64%
2010
36,588,819
36,055,757
98.54%
480,136
36,535,893
99.86%
2011
34,350,425
36,029,172
104.89%
346,814
36,375,986
105.90%
2012
17,717,826
17,652,090
99.63%
Not Available
17,652,090
99.63%
2013
1,365,608
1,311,650
96.05%
126,060
1,437,711
105.28%
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
101
CITY OF RANCHO MIRAGE
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal
Percentage
Year
Revenue
Tax Allocation
Advances
Loans
of Personal
End
Bonds
Bonds'
Payable
Payable
Total
Income
2004
3,105,000
166,635,304
7,112,815
176,853,119
17.26%
2005
5,925,000
164,408,511
7,112,815
177,446,326
16.08%
2006
5,775,000
161,464,681
-
167,239,681
14.18%
2007
5,625,000
157,119,221
-
162,744,221
13.20%
2008
5,470,000
152,842,643
-
158,312,643
11.90%
2009
5,310,000
169,690,462
-
175,000,462
13.18%
2010
5,145,000
164,673,158
-
169,818,158
12.21%
2011
4,970,000
157,870,276
-
162,840,276
13.67%
2012
4,790,000
-
-
2,314,566
7,104,566
0.61%
2013
4,605,000
-
2,267,396
6,872,396
0.63%
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
102
CITY OF RANCHO MIRAGE
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt
Fiscal Year
Ended Revenue Tax Allocation
June 30 Bonds Bonds
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
3,105,000
5,925,000
5,775,000
5,625,000
5,470,000
5,310,000
5,145,000
4,970,000
4,790,000
4,605,000
166,635,304
164,408,511
161,464,681
157,119,221
152,842,643
169,690,462
164,673,158
157,870,276
Loans Total
2,314, 566
2,267,396
General bonded debt is debt payable with governmental fund resources.
169,740,304
170,333,511
167,239,681
162,744,221
158,312,643
175,000,462
169, 818,158
162,840,276
4,790,000
4,605,000
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 Comprehensive Annual Financial Report
103
Percent of
Assessed
Value 1
1.85%
1.67%
1.46%
1.25%
1.11%
1.18%
1.17%
1.18%
0.04%
0.03%
Per
Capita
10,938
10,376
10,031
9,605
9,326
10,186
9,985
9,458
274
261
r ric:� y;l��.c0: c:1��::;A�e y
Direct and Overlapping Debt
June 30, 2013
City Assessed Valuation
$7,149,173,132
Redevelopment Agency Incremental Valuation
(5,268,486,185)
Total Assessed Valuation
$1,880,686,947
City's Share of
Total Debt
Percentage
Debt
06/30/13
Applicable
06/30/13
OVERLAPPING TAX AND ASSESSMENT DEBT:
Desert Community College District
$ 310,591,264
8.659%
26,894,098
Desert Sands Unified School District
240,740,492
3.964%
9,542,953
Palm Springs Unified School District
320,482,151
16.531%
52,978,904
City of Rancho Mirage 1915 Act Bonds
9,495,000
100.000%
9,495,000
Coachella Valley Water District Assessment District No. 68
1,695,000
13.890%
235,436
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
$ 99,146,392
Ratios to 2011-12 Assessed Valuation:
Total Overlapping Tax and Assessment Debt
1.39%
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Riverside County General Fund Obligations
654,842,180
1.870%
12,245,549
Riverside County Pension Obligations
357,340,000
1.870%
6,682,258
Riverside County Board of Education Certificates of Participation
4,955,000
1.870%
92,659
Desert Sands Unified School District Certificates of Participation
57,755,000
3.964%
2,289,408
Coachella Valley Water District, Improvement District No. 71 Certificates of Participation
1,270,000
12.866%
163,398
Coachella Valley Recreation and Park District Certificates of Participation
2,120,000
2.998%
63,558
City of Rancho Mirage Certificates of Participation
4,530,000
100.000%
4,530,000
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT
1,082,812,180
$ 26,066,829
Less: Riverside County self-supporting obligations
231,803
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT
$ 25,835,026
TOTAL DIRECT DEBT
$ 4,530,000
TOTAL GROSS OVERLAPPING DEBT
$120,683,221
TOTAL NET OVERLAPPING DEBT
$120,451,418
GROSS COMBINED TOTAL DEBT 2
$ 125,213,221
NET COMBINED TOTAL DEBT
$ 124,981,418
(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 Adiusted Assessed V aluation
Total Direct Debt ($4,790,000)
0.24%
Gross Combined Total Debt
6.66%
Net Combined Total Debt
6.65%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/13: $0
104
CITY OF RANCHO MIRAGE
Computation of Legal Debt Margin
Last Ten Fiscal Years
Outstanding
Fiscal Lease
Year Revenue
End Bonds
Less:
Bond
Reserve
Requirement (2)
Total Net
Debt
Applicable To
Debt Limit
Legal Debt
Limit
Legal Debt
Margin
Legal Debt
Margin as a
% of Limit
2004 169,740,304
26,679,901
143,060,403
1,373,125,724
1,230,065,321
89.6%
2005 170,333,511
32,135,427
138,198,084
1,528,322,872
1,390,124,788
91.0%
2006 167,239,681
35,842,735
131,396,946
1,716,192,783
1,584,795,837
92.3%
2007 162,744,221
35,692,735
127,051,486
1,947,927,233
1,820,875,746
93.5%
2008 158,312,643
40,364,944
117,947,699
2,143,036,555
2,025,088,855
94.5%
2009 175,000,462
40,881,825
134,118,637
2,219,509,124
2,085,390,486
94.0%
2010 169,818,158
40,003,617
129,814,541
2,171,005,018
2,041,190,477
94.0%
2011 162,840,276
38,422,052
124,418,224
2,066,196,749
1,941,778,525
94.0%
2012 4,790,000
21,116,014
(16,326,014)
2,045,642,029
2,061,968,043
100.8%
2013 4,605,000
18,220,007
(13,615,007)
2,050,088,054
2,063,703,061
100.7%
General bonded debt is debt payable with governmental fund resources
and general
obligation bonds recorded in enterprise funds (of which, the City
has none).
Assessed value has been used because the actual
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 debt issuances.
105
Pledged Revenue Coverage
Library Lease and Civic Center Revenue Bonds and Redevelopment Tax Allocation Bonds
Last Ten Fiscal Years
Description
2005
Library Lease
Revenue Bonds
FY 2005-06
FY 2006-07
FY 2007-08
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
1995
Library Lease
Revenue Bonds
FY 2003-04
FY 2004-05
FY 2005-06
FY 2006-07
FY 2007-08
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
Revenue
Available for
Debt Service Requirements
Debt Service
Principal
Interest
Total
Coverage
370,974
150,000
220,974
370,974
100.00%
388,033
150,000
238,033
388,033
100.00%
388,533
155,000
233,533
388,533
100.00%
388,883
160,000
228,883
388,883
100.00%
388,482
165,000
223,482
388,482
100.00%
392,914
175,000
217,914
392,914
100.00%
392,008
180,000
212,008
392,008
100.00%
390,482
185,000
205,482
390,482
100.00%
240,924 45,000 195,924 240,924 100.00%
243,286 50,000 193,286 243,286 100.00%
Notes: Revenue available for Library Lease Revenue Bonds consists of lease payments made by the City of
Rancho Mirage to the Rancho Mirage Joint Powers Financing Authority.
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 Bonds were refunded in full in July 2001. In prior years, the revenue available
consisted of property tax revenues received by the Rancho Mirage Redevelopment Agency that were
used to make loan payments to the Rancho Mirage Joint Powers Financing Authority.
Source: City of Rancho Mirage
106
CITY OF RANCHO MIRAGE
Demographic and Economic Statistics
Last Ten Calendar Years
City population
15,000
16,000
Per
14,000
Capita
Fiscal
Personal
Personal
Unemployment
Year
Population 1
Income
Income 2
Rate 3
2004
15,518
1,024,901,828
66,046
6.2%
2005
16,416
1,103,450,688
67,218
5.5%
2006
16,672
1,179,277,248
70,734
5.1%
2007
16,944
1,233,269,040
72,785
5.8%
2008
16,975
1,330,568,400
78,384
8.0%
2009
17,180
1,327,784,200
77,287
13.5%
2010
17,008
1,390,591,088
81,761
14.4%
2011
17,218
1,191,451,164
69,198
14.3%
2012
17,504
1,168,742,080
66,770
12.7%
2013
17,643
1,098,188,535
62,245
10.7%
City population
15,000
16,000
14,000
12,000
10,000
2004 2005 2006 2007 2005 2009 2010 2011 2012 2013
County Unemployment Rate
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Sources: (1) California State Department of Finance
(2) U.S. Census Bureau
(3) U.S. Bureau of Labor Statistics (for Riverside County)
107
Principal Employers
Source: Rancho Mirage Chamber of Commerce
Data not available for prior years.
Total Employment - Labor Force of Principal Employers
Top 10 percentage
108
5704
100.00%
2013
Percent of
Number of
Primary
Total Principal
Employer
Employees
Description
Rank
Employment
Eisenhower Medical Center
2,480
Hospital / Clinics
1
43.48%
Agua Caliente Resort & Casino
1,300
Casino
2
22.79%
Rancho Las Palmas Resort & Spa
500
Hotel
3
8.77%
Westin Mission Hills Resort & Spa
470
Hotel
4
8.24%
Betty Ford Center
269
Rehabilitation Center
5
4.72%
Mission Hills Country Club
211
Country Club
6
3.70%
The Cheesecake Factory
180
Restaurant
7
3.16%
The Home Depot
149
Home Improvement Store
8
2.61%
PF Chang's China Bistro
75
Restaurant
9
1.31%
Babe's Bar-B-Que & Brewhouse
70
Restaurant
10
1.23%
Source: Rancho Mirage Chamber of Commerce
Data not available for prior years.
Total Employment - Labor Force of Principal Employers
Top 10 percentage
108
5704
100.00%
Function
General Fund
City Clerk
City Manager/Management Services
City Attomey'
Administration
Finance
Information Services
Planning
Building
Code Compliance
Engineering
Street Maintenance
Buildings & Grounds
Emergency Services
General Government
Tourism & Marketing
Economic Development
GENERAL FUND SUB -TOTAL
Parkland Fund
Library Fund
Library Fund (full-time equivalents)'
Housing Authority
TOTAL
Full-time and Part-time City Employees
By Function
Last Ten Fiscal Years
Full -Time and Part-time Employees as of June 30
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
6.00
6.00
5.00
6.00
6.00
6.00
4.00
4.00
4.00
4.00
7.00
8.00
11.00
12.00
12.00
12.00
10.00
11.00
3.00
3.00
2.00
2.00
2.00
1.00
1.00
1.00
1.00
1.00
6.00
6.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
4.00
4.00
4.00
2.00
2.00
2.00
2.00
2.00
2.00
7.00
2.00
2.00
2.00
9.50
9.00
9.00
9.00
8.00
8.00
4.00
7.00
7.00
6.00
6.00
6.50
5.00
5.00
5.00
5.00
5.50
4.00
4.00
4.00
3.00
3.00
3.00
3.00
4.00
4.00
5.50
6.00
6.00
5.00
9.00
9.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
5.00
5.00
5.00
5.00
5.00
5.00
4.50
4.00
5.00
5.00
4.00
4.00
4.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
-
-
1.00
1.00
1.00
1.00
-
-
-
-
1.00
1.00
1.00
1.00
1.00
1.00
1.00
-
-
-
-
-
-
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
2.00
2.00
59.50
60.50
63.00
66.00
66.00
66.00
63.50
60.00
59.00
57.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
1.00
1.00
8.00
8.00
11.00
11.00
15.00
15.00
14.00
13.00
12.00
12.00
7.92
8.25
4.92
14.61
15.23
17.91
12.79
12.61
11.58
11.55
4.50
4.50
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
81.92
83.25
84.92
97.61
102.23
104.91
96.29
91.61
87.58
85.55
' 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
109
r ric:� ;AV
Operating Indicators by Function
Last Ten Fiscal Years
Public Works:
Permits issued:
Grading
Encroachment
Pool drainage
Transportation
Miscellaneous
Maintenance of:
Miles of streets
Miles of bike paths
Number of major intersections
Number of traffic signals & safety lighting
Number of traffic signs
Number of street lights
Parks and Recreation:
Number of parks
Total acreage
Library
Items checked out
Patron visits to the library
Reference questions
Holds/reserves placed
Total website pageviews-not consistently recorded
Library cardholders as of June
Community Development
Number of building permits issued
Estimated valuation of building permits issued
NA = Not available
Source: City of Rancho Mirage
Fiscal Year
2004 2005 2006 2007 2008
131
112
91
80
48
292
236
223
240
195
-
-
5
18
73
80
101
99
89
114
74
56
58
23
11
73.5
73.5
73.5
73.8
73.8
21.3
21.9
21.9
22.3
22.9
26
26
26
26
26
48
50
54
52
52
2,074
2,091
2,099
2,113
2,132
196
198
202
206
208
5.0
5.0
5.0
5.0
5.0
12.6
12.6
12.6
12.6
12.6
368,626
378,363
389,729
481,604
615,016
235,905
236,571
279,769
320,551
349,768
44,711
45,318
55,362
63,299
74,067
22,943
25,746
30,611
40,395
47,347
966,986
602,116
364,092
660,143
1,061,113
19,094
19,518
24,250
29,520
35,749
2,445
2,387
1,525
1,193
1,427
232,925,182
165,034,703
91,031,942
128,161,385
96,054,794
110
Fiscal Year
2009
2010
2011
2012
2013
30
20
20
21
33
193
114
156
178
131
28
20
35
42
44
80
62
62
65
57
15
28
39
12
5
73.8
74.0
74.0
74.0
74.0
23.0
23.6
24.6
25.0
25.0
26
26
26
27
27
60
60
61
62
62
2,140
2,172
3,702
3,624
3,624
208
208
208
208
208
5.0
5.0
5.0
5.0
5.0
12.6
12.6
12.6
13.0
13.0
641,346
622,148
599,379
598,217
596,504
367,785
358,165
314,049
323,607
332,207
83,279
88,023
85,158
99,966
102,054
52,426
52,583
74,719
72,162
64,207
1,211,457
808,119
342,144
575,128
939,045
41,053
37,498
34,977
40,154
39,212
1,127
1,104
1,057
989
1,284
44,351,780
47,973,671
32,614,403
30,272,385
47,745,353
111
CITY OF RANCHO MIRAGE
Capital Asset Statistics
By Function
Last Ten Fiscal Years
Fiscal Year
Source: City of Rancho Mirage
112
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Public Works:
Miles of Public Streets
73.5
73.5
73.5
73.8
73.8
73.8
74.0
74.0
74.0
74.0
Miles of Public Bike Paths
21.3
21.9
21.9
22.3
22.9
23.0
23.6
24.6
25.0
25.0
Number of Major Intersections
26
26
26
26
26
26
26
26
27
27
Number of Traffic Signals and
48
50
54
52
52
60
60
61
62
62
Safety Lighting
Number of traffic signs
2,074
2,091
2,099
2,113
2,132
2,140
2,172
3,702
3,624
3,624
Number of street lights
196
198
202
206
208
208
208
208
208
208
Parks and Recreation:
Number of Parks
5
5
5
5
5
5
5
5
5
5
Total Acreage
12.6
12.6
12.6
12.6
12.6
12.6
12.6
12.6
13.0
13.0
Buildings:
Civic Center
1
1
1
1
1
1
1
1
1
1
Civic Center Annex
-
-
-
-
-
1
1
1
1
1
Library
1
1
1
1
1
1
1
1
1
1
Corporation Yard
1
1
1
1
1
1
1
1
1
1
Housing Authority
Age -Restricted Housing
1
2
3
3
3
4
4
4
4
4
Source: City of Rancho Mirage
112
FORMER REDEVELOPMENT AGENCY LONGTERM DEBT INFORMATION
CITY OF RANCHO MIRAGE
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
Long-term debt activity for the former redevelopment agency for the year ended June 30, 2013 was as follows:
Beginning
Ending
Due within
Balance
Retirements
Balance
One year
Tax allocation bonds payable:
2001A-1 subordinate lien tax
allocation bonds
$ 1,420,000
$ 100,000
$ 1,320,000
$ 105,000
2001A -E subordinate lien tax
allocation bonds
3,175,000
225,000
2,950,000
235,000
2001A-1 tax allocation bonds
11,670,000
555,000
11,115,000
575,000
2001A -E tax allocation bonds
12,160,000
340,000
11,820,000
355,000
2001B-1 tax allocation bonds
2,770,000
75,000
2,695,000
75,000
2001B -E tax allocation bonds
1,020,000
25,000
995,000
30,000
2002A subordinate lien tax
allocation bonds
3,795,000
475,000
3,320,000
495,000
2003 A-1 subordinate lien tax
allocation bonds
1,672,872
(91,382)
1,764,254
-
2003 A-E subordinate lien tax
allocation bonds
3,780,000
250,000
3,530,000
260,000
2003 A -T subordinate lien tax
allocation bonds
1,060,000
20,000
1,040,000
15,000
2003 A Housing TABS
26,800,000
1,255,000
25,545,000
1,300,000
2003 A-1 tax allocation bonds
2,297,611
(129,397)
2,427,008
-
2003 A-E tax allocation bonds
15,500,000
435,000
15,065,000
450,000
2003 A -T tax allocation bonds
3,875,000
100,000
3,775,000
105,000
2003 B subordinate lien tax
allocation bonds
1,755,000
35,000
1,720,000
40,000
2006 A -Whitewater TA ref
bonds
19,575,000
1,015,000
18,560,000
1,075,000
2006 A -Northside TA ref
bonds
21,920,000
410,000
21,510,000
435,000
2008 A subordinate lien tax
allocation bonds
19,845,000
510,000
19,335,000
525,000
Deferrals on refunding and
issuance (discounts)/premiums
(498,543)
(46,040)
(452,503)
(46,040)
TOTALS
$ 153,591,940
$ 5,558,181
$ 148,033,759
$ 6,028,960
114
100& e] W;al.ctj:c11011;axeD1
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
2001A-1 Subordinate Lien Tax Allocation Parity 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 were
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 were referred to herein as the Senior Lien Bonds. On February 1, 2012 these Bonds
were transferred from the Rancho Mirage Redevelopment Agency to the Successor Agency and the balance
outstanding is no longer included in the City's Statement of Net Position.
The 2001A-1 bonds have annual interest ranging from 3.75 percent to 4.625 percent 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 2001A -E bonds have annual interest ranging from 3.75 percent to 4.8 percent 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, 2013, the reserve for the
2001A-1 and 2001A -E bonds was held by the fiscal agent in the form of a surety bond. On February 1, 2012
these Bonds were transferred from the Rancho Mirage Redevelopment Agency to the Successor Agency and the
balance outstanding is no longer included in the City's Statement of Net Position.
The annual payment amounts required to retire the 2001A-1 bonds outstanding as of June 30, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
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
$ 193,503
$ 193,503
$ 387,006
$ 1,320,000
$ 1,707,006
115
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 2001A -E bonds outstanding as of June 30, 2013 are as
follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
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
56,632
113,263
270,000
383,263
2018
49,713
49,712
99,425
285,000
384,425
2019
42,409
42,410
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
$ 444,895
$ 444,896
$ 889,791
$ 2,950,000
$ 3,839,791
2001A-1 Tax Allocation Bonds, 2001A -E Tax Allocation Bonds, 200113-1 Subordinate Lien Tax Allocation
Bonds and 200113-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 200113-1 and $1,195,000 Subordinate Lien Tax Allocation
Bonds, Series 200113-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, fund 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 percent to 4.625 percent 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 percent to 4.75 percent 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.
116
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The 200113-1 bonds have annual interest ranging from 3.75 percent to 4.80 percent 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 200113-E bonds have annual interest ranging from 4.0 percent to 5.0 percent 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 200113-1 and 200113-E bonds are secured by the surplus tax revenues of the Agency.
The 2001A bond resolution and indentures require that the bond reserve policy, when added to the 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,
2010, the 2001A reserve policy 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 $316,815. On February 1, 2012 these Bonds were transferred from the Rancho Mirage
Redevelopment Agency to the Successor Agency and the balance outstanding is no longer included in the City's
Statement of Net Position.
The annual payment amounts required to retire the 2001A-1 bonds outstanding as of June 30, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
2014
$ 275,590
$ 275,591
$ 551,181
$ 575,000
$ 1,126,181
2015
262,366
262,365
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
165,375
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
$ 3,070,581
$ 3,070,581
$ 6,141,162
$ 11,115,000
$ 17,256,162
117
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 2001A -E bonds outstanding as of June 30, 2013 are as follows:
Interest
Interest
Principal
Total
Fiscal
Due
Due
Total
Due
Annual
Year
April 1
October 1
Interest
April 1
Debt Service
2014
$ 306,806
$ 306,807
$ 613,613
$ 355,000
$ 968,613
2015
298,375
298,375
596,750
370,000
966,750
2016
289,588
289,587
579,175
390,000
969,175
2017
279,594
279,594
559,188
405,000
964,188
2018
269,216
269,215
538,431
430,000
968,431
2019
258,197
258,197
516,394
450,000
966,394
2020
246,666
246,665
493,331
475,000
968,331
2021
234,494
234,494
468,988
500,000
968,988
2022
221,681
221,682
443,363
525,000
968,363
2023
207,900
207,900
415,800
550,000
965,800
2024
193,463
193,462
386,925
580,000
966,925
2025
178,238
178,237
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
127,707
255,413
710,000
965,413
2029
109,069
109,069
218,138
750,000
968,138
2030
89,382
89,381
178,763
785,000
963,763
2031
68,775
68,775
137,550
830,000
967,550
2032
46,988
46,987
93,975
870,000
963,975
2033
24,150
24,150
48,300
920,000
968,300
TOTALS
$ 3,757,938
$ 3,757,934
$ 7,515,872
$ 11,820,000
$ 19,335,872
118
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 200113-1 bonds outstanding as of June 30, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
2014
$ 75,100
$ 75,100
$ 150,200
$ 75,000
$ 225,200
2015
73,038
73,037
146,075
80,000
226,075
2016
70,838
70,837
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
63,412
126,825
100,000
226,825
2020
60,662
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
48,012
48,013
96,025
130,000
226,025
2025
44,437
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
32,062
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
11,812
11,813
23,625
205,000
228,625
2033
6,047
6,047
12,094
215,000
227,094
TOTALS
$ 928,062
$ 928,064
$ 1,856,126
$ 2,695,000
$ 4,551,126
119
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 200113-E bonds outstanding as of June 30, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
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
26,515
53,029
30,000
83,029
2017
25,671
25,670
51,341
35,000
86,341
2018
24,686
24,687
49,373
35,000
84,373
2019
23,702
23,702
47,404
35,000
82,404
2020
22,718
22,717
45,435
40,000
85,435
2021
21,593
21,592
43,185
40,000
83,185
2022
20,468
20,467
40,935
45,000
85,935
2023
19,202
19,202
38,404
45,000
83,404
2024
17,936
17,937
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
13,537
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
8,407
8,408
16,815
70,000
86,815
2031
6,412
6,413
12,825
70,000
82,825
2032
4,417
4,418
8,835
75,000
83,835
2033
2,280
2,280
4,560
80,000
84,560
TOTALS
$ 346,968
$ 346,971
$ 693,939
$ 995,000
$ 1,688,939
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 percent to 4.80 percent 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.
120
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
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, 2013, the reserve for the 2002A bond was held by the fiscal agent in the form
of a surety bond. On February 1, 2012 these Bonds were transferred from the Rancho Mirage Redevelopment
Agency to the Successor Agency and the balance outstanding is no longer included in the City's Statement of Net
Position.
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.
The annual payment amounts required to retire the 2002A bonds outstanding as of June 30, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
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
28,772
57,545
590,000
647,545
2019
14,760
14,760
29,520
615,000
644,520
TOTALS
$ 283,009
$ 283,008
$ 566,017
$ 3,320,000
$ 3,886,017
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
The Series 2003 A-E Bonds have annual interest ranging from 2.00 percent to 4.25 percent 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 percent term series 2003 A -T bonds are due April 1, 2013. $1,040,000 5.76 percent 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. As of June 30, 2013, the series 2003 reserve was held by the fiscal agent in the form of a surety bond.
On February 1, 2012 these Bonds were transferred from the Rancho Mirage Redevelopment Agency to the
Successor Agency and the balance outstanding is no longer included in the City's Statement of Net Position.
121
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 2003A-1 bonds outstanding as of June 30, 2013 are as follows:
Fiscal
Interest
Due
April 1
Year
Accreted Value
2014
$
2015
$ 77,825
2016
$ 155,650
2017
$ 415,650
2018
72,788
2019
145,575
2020
415,575
2021
67,388
2022
134,775
2023
414,775
2024
61,612
2025
3,340,000
Total accreted value
3,340,000
Less future accretion
(1,575,746)
55,632
$ 1,764,254
The annual payment amounts required to retire the 2003A -E bonds outstanding as of June 30, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
2014
$ 77,825
$ 77,825
$ 155,650
$ 260,000
$ 415,650
2015
72,788
72,787
145,575
270,000
415,575
2016
67,388
67,387
134,775
280,000
414,775
2017
61,612
61,613
123,225
290,000
413,225
2018
55,631
55,632
111,263
300,000
411,263
2019
49,256
49,257
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
9,135
18,269
395,000
413,269
TOTALS
$ 514,000
$ 514,002
$ 1,028,002
$ 3,530,000
$ 4,558,002
122
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 2003A -T bonds outstanding as of June 30, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
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
$ 283,824
$ 283,824
$ 567,648
$ 1,040,000
$ 1,607,648
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 percent to 5.25 percent and annual principal
installments ranging from $1,025,000 to $1,770,000. The $5,850,000, 4.63 percent term bonds are due April 1,
2024. The $7,630,000 5.00 percent 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. On February 1, 2012 these Bonds were transferred from the Rancho Mirage Redevelopment
Agency to the Successor Agency and the balance outstanding is no longer included in the City's Statement of Net
Position.
123
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 2003A Housing Tax Allocation bonds outstanding as of June
30, 2013 are as follows:
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.
124
Interest
Interest
Principal
Total
Fiscal
Due
Due
Total
Due
Annual
Year
April 1
October 1
Interest
April 1
Debt Service
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
556,240
1,112,481
1,400,000
2,512,481
2017
528,241
528,240
1,056,481
1,455,000
2,511,481
2018
498,231
498,232
996,463
1,515,000
2,511,463
2019
458,463
458,462
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
326,032
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
310,750
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
$ 5,882,533
$ 5,882,532
$ 11,765,065
$ 25,545,000
$ 37,310,065
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.
124
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The $5,225,000 Series 2003A -E Serial Bonds have annual interest ranging from 2.00 percent to 4.25 percent and
annual principal payments ranging from $365,000 to $530,000. In addition, $3,685,000 4 5/8 percent Term Series
2003A -E Bonds are due April 1, 2024, $3,090,000 4.75 percent Term Series 2003A -E Bonds are due April 1,
2028, and $5,845,000 4.75 percent 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
2003AT Term Bonds have annual interest ranging from 3.78 percent to 5.86 percent 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 percent to 5.00 percent and
annual principal payments ranging from $35,000 to $45,000. In addition, $280,000 5.25 percent Term Series
2003B Bonds are due April 1, 2023, $355,000 5 3/8 percent Term Series 2003B Bonds are due April 1, 2028, and
$875,000 5.50 percent Term Series 2003B Bonds are due April 1, 2034.
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 fund 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 percent of the bond proceeds of each series of bonds outstanding, 125
percent 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. On February 1, 2012 these Bonds were transferred from the Rancho Mirage Redevelopment
Agency to the Successor Agency and the balance outstanding is no longer included in the City's Statement of Net
Position.
125
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 2003A -E tax allocation bonds outstanding as of June 30, 2013
are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
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
308,685
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
281,522
271,522
553,044
600,000
1,153,044
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
212,207
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
158,532
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
96,782
193,563
950,000
1,143,563
2032
74,219
74,219
148,438
995,000
1,143,438
2033
50,588
50,587
101,175
1,040,000
1,141,175
2034
25,888
25,887
51,775
1,090,000
1,141,775
TOTALS
$ 4,482,576
$ 4,472,578
$ 8,955,154
$ 15,065,000
$ 24,020,154
126
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 2003A -T tax allocation bonds outstanding as of June 30, 2013
are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
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
102,834
205,667
115,000
320,667
2017
99,700
99,699
199,399
125,000
324,399
2018
96,293
96,294
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
32,962
65,925
265,000
330,925
2031
25,198
25,198
50,396
265,000
315,396
2032
17,433
17,434
34,867
290,000
324,867
2033
8,937
8,936
17,873
305,000
322,873
TOTALS
$ 1,355,406
$ 1,355,406
$ 2,710,812
$ 3,775,000
$ 6,485,812
127
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 2003B bonds outstanding as of June 30, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
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
39,640
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
31,857
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
24,062
48,125
80,000
128,125
2030
21,863
21,862
43,725
80,000
123,725
2031
19,662
19,663
39,325
95,000
134,325
2032
17,050
17,050
34,100
95,000
129,100
2033
14,437
14,438
28,875
105,000
133,875
2034
11,550
11,550
23,100
420,000
443,100
TOTALS
$ 669,100
$ 669,100
$ 1,338,200
$ 1,720,000
$ 3,058,200
128
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
The annual payment amounts required to retire the 2003A-1 tax allocation bonds outstanding as of June 30, 2013
are as follows:
Fiscal
Year
Accreted Value
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 (5,452,992)
$ 2,427,008
2006 A Whitewater Tax Allocation Refunding 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, which have been fully repaid, the Agency's Whitewater Redevelopment Project
Tax Allocation Parity Bonds, 1997A, originally issued in the principal amount of $4,850,000, have been fully
repaid, 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 have been fully repaid.
129
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
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 any outstanding 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 percent of the total incorporated
area of the City. Approximately 66 percent 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 percent to 5 percent is due in semi-annual 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. On
February 1, 2012 these Bonds were transferred from the Rancho Mirage Redevelopment Agency to the Successor
Agency and the balance outstanding is no longer included in the City's Statement of Net Position.
The annual payment amounts required to retire the 2006A tax allocation (Whitewater) bonds outstanding as of
June 30, 2013 are as follows:
Interest
Due
October 1
$ 462,656
437,125
409,000
Total
Interest
$ 925,313
874,250
818,000
Principal
Due
April 1
$ 1,075,000
1,125,000
1,180,000
Total
Annual
Debt Service
$ 2,000,313
1,999,250
1,998,000
2017
Interest
Fiscal
Due
Year
April
2014
$ 462,657
2015
437,125
2016
409,000
Interest
Due
October 1
$ 462,656
437,125
409,000
Total
Interest
$ 925,313
874,250
818,000
Principal
Due
April 1
$ 1,075,000
1,125,000
1,180,000
Total
Annual
Debt Service
$ 2,000,313
1,999,250
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
$ 3,226,782
$ 3,226,781
$ 6,453,563
$ 18,560,000
$ 25,013,563
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 have been fully repaid and the Agency's Redevelopment Plan -1984 Project, Tax
Allocation Bond Series, 1999A, originally issued in the principal amount of $8,680,000 have been fully repaid.
130
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
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 percent 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 $385,000 to $1,715,000 through
April 1, 2033. Interest ranging from 3.5 percent to 5.0 percent is due in semi-annual installments on April 1 and
October 1 of each year. As of June 30, 2013 the reserve requirement is held by the fiscal agent in the form of a
surety bond. On February 1, 2012 these Bonds were transferred from the Rancho Mirage Redevelopment Agency
to the Successor Agency and the balance outstanding is no longer included in the City's Statement of Net
Position.
The annual payment amounts required to retire the 2006A tax allocation (Northside) bonds outstanding as of June
30, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
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
467,362
934,725
855,000
1,789,725
2019
445,988
445,987
891,975
890,000
1,781,975
2020
426,519
426,519
853,038
940,000
1,793,038
2021
405,956
405,957
811,913
970,000
1,781,913
2022
384,131
384,132
768,263
1,020,000
1,788,263
2023
359,906
359,907
719,813
1,065,000
1,784,813
2024
334,613
334,612
669,225
1,115,000
1,784,225
2025
308,131
308,132
616,263
1,170,000
1,786,263
2026
281,806
281,807
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
79,682
79,681
159,363
1,640,000
1,799,363
2033
40,732
40,731
81,463
1,715,000
1,796,463
TOTALS
$ 6,454,229
$ 6,454,229
$ 12,908,458
$ 21,510,000
$ 34,418,458
131
FORMER REDEVELOPMENT AGENCY LONG-TERM DEBT INFORMATION
(CONTINUED)
2008 A Subordinate Lien Tax Allocation Bonds
On July 30, 2008 the Redevelopment Agency of the City of Rancho Mirage issued $22,040,000 Subordinate Lien
Tax Allocation Bonds, Series 2008A (Northside Sub -Area). The proceeds of the Bonds were used to pay the
costs of issuing the Bonds, to fund a reserve account for the Bonds, and to finance certain improvements in its
Merged Redevelopment Project.
The Sub -Area encompasses approximately 4,717 acres, or about 30 percent of the total incorporated area of the
City. The entire Sub -Area consists of developed or developable land and is primarily residential in character.
Beginning April 1, 2009, the 2008A Bonds are due in annual installments of $460,000 to $1,350,000 through
April 1, 2035. Interest ranging from 3.0 percent to 4.75 percent is due in semi-annual installments on April 1 and
October 1 of each year. On February 1, 2012 these Bonds were transferred from the Rancho Mirage
Redevelopment Agency to the Successor Agency and the balance outstanding is no longer included in the City's
Statement of Net Position.
The annual payment amounts required to retire the 2008A bonds outstanding as of June 30, 2013 are as follows:
Fiscal
Year
Interest
Due
April 1
Interest
Due
October 1
Total
Interest
Principal
Due
April 1
Total
Annual
Debt Service
2014
$ 477,672
$ 477,672
$ 955,344
$ 525,000
$ 1,480,344
2015
467,172
467,172
934,344
545,000
1,479,344
2016
456,272
456,272
912,544
580,000
1,492,544
2017
444,309
444,310
888,619
595,000
1,483,619
2018
431,666
431,665
863,331
620,000
1,483,331
2019
417,716
417,715
835,431
650,000
1,485,431
2020
403,091
403,090
806,181
675,000
1,481,181
2021
387,903
387,903
775,806
705,000
1,480,806
2022
371,160
371,159
742,319
740,000
1,482,319
2023
353,585
353,584
707,169
775,000
1,482,169
2024
334,210
334,209
668,419
815,000
1,483,419
2025
313,835
313,834
627,669
850,000
1,477,669
2026
292,585
292,584
585,169
900,000
1,485,169
2027
270,085
270,084
540,169
945,000
1,485,169
2028
245,869
245,868
491,737
995,000
1,486,737
2029
220,372
220,372
440,744
1,045,000
1,485,744
2030
193,594
193,593
387,187
1,100,000
1,487,187
2031
164,719
164,718
329,437
1,150,000
1,479,437
2032
134,531
134,537
269,068
1,215,000
1,484,068
2033
102,638
102,637
205,275
1,280,000
1,485,275
2034
69,038
69,037
138,075
1,280,000
1,418,075
2035
35,438
35,437
70,875
1,350,000
1,420,875
TOTALS
$ 6,587,460
$ 6,587,452
$ 13,174,912
$ 19,335,000
$ 32,509,912
132