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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 Citizens of Rancho Mirage City Council City Man ager 1 CItVClerk CityAttomey Housing Authority Executive Director Rec at ds Me nagelneol Llbrmy DeveF>pmerd Administrative city Public Successor Public Services Services Services fdaeagel Sal Aueucv wolks Circulotioo Building& Frumlce ,ellelal Riverside ROPS Engiaeetrng Safety I.MIP.I h1eP.ld Courry I1der111MMI1 SIIPrlirs :PllPrll Calmal Reference Cade Selvices IrWndrerl Depalniteltt Dissollnion IUIRlevelllellls CO Olpllance n p1 mp ams ma laaenletlt ckiddlelis Economic Hllulall Regional PLmnllnl Citizens au Street Somites DWO"pull, Resclences alulplememaliotl Patrol rJandor mea IC UVSI Technoiolly Hoosinu Einerlleney speelalplayaurs Larfrc SiunAs Preparedness Riverside Plogranullipf Poammig 8 Calllty Fiie Parks -Median Z011mg Risk Depa11tllelll Islands & Pllilic Mallagemem Parkways IIItJ1111.111011 & CnI1111111111ty CQ,1 act recil0ies & Relations Services Fleet Mai11FP.11mlte Redevelopulel, Succeseer Agency Ptoj eel Manageolettt Towlsin R Mal ketiml V1 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