HomeMy Public PortalAboutCity of Rancho Mirage 2021 ACFRC ITY OF RANCHO MIRAGE, CALIFORNIA
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
prepared by:
F INANCE DEPARTMENT
Kofi Antobam, Director of Administrative Services
Joseph Carpenter, Finance Manager
City of Rancho Mirage, California
Table of Contents
June 30, 2021
Introductory Section
Letter of Transmittal ......................................................................................................................................... i
Certificate of Achievement for Excellence in Financial Reporting (GFOA) ......................................................... ix
Organizational Chart ......................................................................................................................................... x
Directory of Officials ........................................................................................................................................ xi
Financial Section
Independent Auditor’s Report ............................................................................................................................. 1
Management's Discussion and Analysis ............................................................................................................... 4
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ..............................................................................................................................13
Statement of Activities ...................................................................................................................................14
Fund Financial Statements
Balance Sheet - Governmental Funds..............................................................................................................15
Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Funds .........................16
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds .........................17
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the
Statement of Activities - Governmental Funds ................................................................................................18
Statement of Net Position - Proprietary Funds ................................................................................................19
Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds ..............................20
Statement of Cash Flows - Proprietary Funds ..................................................................................................21
Statement of Fiduciary Net Position ................................................................................................................22
Statement of Changes in Fiduciary Net Position ..............................................................................................23
Notes to Financial Statements ........................................................................................................................24
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability...........................................................58
Schedule of Plan Contributions .......................................................................................................................59
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios ......................................................60
Schedule of OPEB Contributions .....................................................................................................................61
Budgetary Comparison Schedule - General Fund.............................................................................................62
Budgetary Comparison Schedule - Library Special Revenue Fund ....................................................................68
Budgetary Comparison Schedule - Fire Tax Special Revenue Fund ...................................................................70
Budgetary Comparison Schedule - Housing Authority Special Revenue Fund...................................................72
Note to Required Supplementary Information ................................................................................................73
City of Rancho Mirage, California
Table of Contents (Continued)
June 30, 2021
Supplementary Information
Non-Major Governmental Funds
Combining Balance Sheet ...............................................................................................................................74
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...........................................75
Nonmajor Special Revenue Funds
Combining Balance Sheet ...............................................................................................................................77
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...........................................78
Budgetary Comparison Schedules
Landscape and Lighting Districts Special Revenue Fund ..................................................................................79
Parkland Special Revenue Fund ......................................................................................................................80
Library Foundation Special Revenue Fund .......................................................................................................81
Gas Tax Special Revenue Fund ........................................................................................................................82
AB 939 Recycle Programs Special Revenue Fund .............................................................................................83
Transportation Measure A Special Revenue Fund ...........................................................................................84
Air Pollution Special Revenue Fund .................................................................................................................85
Rent Control Special Revenue Fund ................................................................................................................86
Storm Water Quality Special Revenue Fund ....................................................................................................87
Nonmajor Capital Projects Funds
Balance Sheet .................................................................................................................................................89
Statement of Revenues, Expenditures and Changes in Fund Balances .............................................................90
Budgetary Comparison Schedules
Development Fees Capital Projects Funds .......................................................................................................91
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position ............................................................................93
Statistical Section
Net Position by Component ............................................................................................................................97
Changes in Net Position ..................................................................................................................................98
Fund Balances of Governmental Funds .........................................................................................................100
Changes in Fund Balances of Governmental Funds .......................................................................................101
Major Revenues by Sources - Governmental Funds.......................................................................................102
Property Tax Dollar Breakdown ....................................................................................................................103
Property Tax Roll Summary ...........................................................................................................................104
Net Taxable Assessed Value History ..............................................................................................................105
Assessed Value of Taxable Property ..............................................................................................................106
Sales Value History .......................................................................................................................................107
Top 25 Sales Tax Producers ...........................................................................................................................108
Taxable Sales by Category .............................................................................................................................110
Basic Property Category ................................................................................................................................111
Top Ten Property Taxpayers .........................................................................................................................112
Direct and Overlapping Property Tax Rates ...................................................................................................114
City of Rancho Mirage, California
Table of Contents (Continued)
June 30, 2021
Ratios of Outstanding Debt by Type ..............................................................................................................115
Direct and Overlapping Governmental Activities Debt ..................................................................................116
Ratios of General Bonded Debt Outstanding .................................................................................................117
Computation of Legal Debt Margin ...............................................................................................................118
Pledged Revenue Coverage ..........................................................................................................................119
Demographic and Economic Statistics ...........................................................................................................120
Full-time and Part-time City Employees by Function .....................................................................................121
Operating Indicators by Function ..................................................................................................................122
Capital Assets Statistics by Function..............................................................................................................124
Former Redevelopment Agency Long-Term Debt Information ..........................................................................125
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69-825 Highway 111 | Rancho Mirage | California 92270
760.324.4511
www.ranchomirageca.gov
November 24, 2021
Citizens of the City of Rancho Mirage,
Honorable Mayor and Members of the City Council
It is with great pleasure that we present to you the Annual Comprehensive Financial Report
(ACFR) of the City of Rancho Mirage for the fiscal year ended June 30, 2021. This document
provides an overview of the City’s financial activities during the past fiscal year. It has been
prepared by 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.
Eide Bailly LLP, 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, 2021. The
independent auditors’ report is located at the front of the financial section of this report.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditors’
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
19,114 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 14, 2020. The Mayor is appointed by the City Council for a one-
CITY 0~ RANCHO MIRAGE:
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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 and Observatory.
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-acclaimed public library and observatory, the construction
and maintenance of streets and other infrastructure, retail electricity 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 1st. Separate resolutions are adopted by the City Council and the Boards
of Directors of the Library and Observatory, 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, the Library and Observatory 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
The COVID-19 pandemic and economic uncertainties resulting from various closures impacted
two (sales and transient occupancy taxes) of the City’s major revenue sources. Rancho Mirage,
like most municipalities in the State and in the nation, anticipates these uncertainties will continue
to impact its finances, coupled with rising pension and public safety costs, and other economic
challenges. Rancho Mirage is however, weathering these financial impacts better than most
others due to the City’s 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. As major events in the Coachella Valley
resume, the City anticipates an increase in tourism which positively affect sales and transient
occupancy taxes. Also, developmental activities in the City continue to increase drawing more foot
traffic into the City which enhances the local economy.
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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 $2.41
million or 7.9% of its total revenue from property tax in Fiscal Year 2020-21.
Redevelopment activity in California effectively ceased January 31, 2012, after the California
Supreme Court on December 29, 2011, upheld AB 1X 26. 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 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
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 four resort hotels
– Omni Rancho Las Palmas Resort and Spa, the Ritz-Carlton Rancho Mirage, the Westin Mission
Hills Golf Resort & Spa and Agua Caliente Casino●Resort●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.
The City does not offer an economic development incentive program. However, under two rare
circumstances the City entered into two agreements, one for sales tax and one for transient
occupancy tax. These limited terms agreements provide for a sharing of the taxes (percentage
rebates) above certain amounts with a maximum rebate or a date expiration, whichever comes
first. These agreements enabled expansion for an existing business and reestablished another.
Generally, the City expects to receive increased revenue as a result of these agreements. Sales
and transient occupancy tax revenue have increased, year-over-year, by approximately $410,000
since the agreements became effective. The terms of the agreement for sales tax rebates were
fulfilled in Fiscal Year 2019-20. The City’s Housing and Finance Divisions are responsible for
monitoring compliance with the agreements.
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Hotels, Sales Tax, CFD – The Big Three
Together, the transient occupancy tax, sales tax and community facilities district (CFD) revenue
(approximately $15.9 million) made up approximately 52.1% of the General Fund’s total revenue
in FY 2020-21. Economic conditions that affect these City revenues are those factors that
influence tourism, consumer spending, residential and commercial growth.
Regarding transient occupancy tax, the four 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. The Ritz-Carlton re-established itself as a first-class
destination and continues to flourish after the complete renovation of the existing 244 - room resort
and construction of 16 spa suites in 2014. In addition, the Ritz is planning expansion of the existing
facility to increase capacity. This Ritz-Carlton along with the Omni Rancho Las Palmas Resort
and Spa, the Westin Mission Hills Golf Resort and Spa and the Agua Caliente Casino●Resort●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 4½-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. In addition, the Rancho Las Palmas
Shopping Center has been and continue to be redeveloped as a first-class shopping center,
including the retail establishments; Hobby Lobby, Pieology Pizzeria, Starbucks, and the locally
famed Brandini Toffee. The resulting ripple effect along Highway 111 makes this area a unique
and vibrant commercial “downtown” for the community.
Major Initiatives
On July 1, 2017, the Emergency Medical Services Insurance Billing Program (“Billing Program”)
went into effect for Cove Community Cities, which includes Rancho Mirage, Indian Wells, and
Palm Desert. Rancho Mirage residents are protected from any out-of-pocket costs related to
emergency paramedic and ambulance transportation services because of this new program.
As part of the Billing Program, Medicare, Medi-Cal, Medicaid and private insurance companies
are billed directly to recover costs incurred from the medical emergency. The recovered costs are
only those collected from the amounts that health insurance providers will pay, and the remainder
of the bill will be waived, therefore resulting in no out-of-pocket costs for residents of the Cove
Community Cities. In FY 2020-21 and in the midst of the COVID-19 pandemic, this program
continues to enable Rancho Mirage residents and visitors to receive the emergency medical
services needed, thereby saving lives and improving their quality of life.
As the city of Rancho Mirage continues to find ways of providing sustainable economic
development programs and opportunities that benefits its residents and businesses, the Rancho
Mirage Energy Authority (RMEA) launched in May 2018, as a new electric utility service for
residents and businesses. Southern California Edison (SCE) continues to provide the City's
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customers with electric delivery services, maintain power lines, and bill customers; however,
RMEA provides the electricity itself. RMEA offers affordable rates and increased renewable
energy availability.
Moving energy in-house has given the community a twofold opportunity: to orient electricity
provision to meet the needs of our residents and businesses while simultaneously meeting our
goals to increase local energy efficiency. RMEA offers customers the ability to choose between
two products with varying levels of renewable energy content. Base Choice - the option in which
all customers are automatically enrolled - offers 50% carbon-free energy, which includes a 35%
renewable energy and 15% hydroelectric energy content, the Premium Renewable Choice option
includes 100% renewable energy at a slightly higher price. Solar customers are automatically
enrolled into RMEA’s net metering program.
RMEA serves as a long-term, sustainable revenue source which benefits not only RMEA
customers, but the Rancho Mirage community as a whole. RMEA customers realized
approximately $342,000 total savings in FY 2020-21, resulting in total customer savings of $2.85
million since its launch. RMEA enables the City to create an energy generation portfolio, giving
Rancho Mirage the ability to determine the amount of renewable energy sources that will be used
in its service area. This provides an opportunity to harness local sustainable resources, such as
solar and wind power. As a result, Rancho Mirage has not only met the state of California's
requirement of using 33% of renewable energy by 2020 but has surpassed this goal.
Additionally, through RMEA the City is able to personalize customer service and enhance its
relationship with its residents and businesses. Because Rancho Mirage's City Council sets the
energy rates, RMEA customers have more influence over their own electrical rates than with
Southern California Edison. This allows residents concerned about these and other related issues
to interact with our City Council rather than travel to San Francisco to interact with the California
Public Utilities Commission.
Long-Term 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.
In order to promote and protect the attractive lifestyle that the City of Rancho Mirage offers to its
residents and visitors an update to Rancho Mirage’s General Plan was approved on November
16, 2017. The update 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.
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
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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 President/CEO 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 Casino●Resort●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. In December 2019, the City Council approved a specific plan which will
guide the development of a master-planned, mixed used community oriented around a multi-
use recreational lagoon and entered into a development agreement for the said development.
Mass grading of the site is expected in the first quarter of 2022.
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.
Financial Policies and Practices
The City has adopted various critical financial policies and practices with the goal of building a
fiscally resilient government over the long term, improving financial sustainability, as well as
increasing transparency and encouraging public engagement.
o Fund Balance Policy for the General Fund
One 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 in the General Fund. 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,
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2010. The Fund Balance Policy incorporates the long-term view of the City’s resources by
adopting various reserves - prudent, disaster recovery, capital projects, library, economic
development and public safety - in the General Fund. 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. As of June 30, 2021, the total
reserves (committed fund balance) for all categories in the General Fund was approximately
$57.3 million. The footnotes to the financial statements provide detailed information over the
various fund balance classifications.
o Debt Management Policy and Procedures
The City, following the best practice guidelines for debt management published by the
Government Finance Officers Association of the United States and Canada (GFOA), and in
compliance with Government Code Section 8855(i), developed and maintains and Debt
Management Policy and Procedures to ensure that debt is issued and managed prudently.
The purpose of this policy is to standardize the parameters for debt issuance and
management, improve the quality of decisions, provide guidance for the structure of debt
issuance to ensure the most prudent, equitable, and cost-effective method of financing is
chosen, provide complete financial disclosure and reporting and to maintain financial
flexibility for the City. The current policy was reviewed and approved by the City Council on
October 5, 2017. Although the City has no bonded debt, the Successor Agency to the former
Rancho Mirage Redevelopment Agency, has a total outstanding debt of approximately $77.7
million as of June 30, 2021.
o Investment Policy
The Investment Policy outlines the guidelines and practices to be used in effectively
managing the City’s available cash and investment portfolio. All available funds are to be
invested in compliance with the California Government Code and other governing provisions
of law. The policy lists in detail authorized investments as well as the percentage of portfolio
limitations and required rating for each investment type. The Investment Policy is reviewed,
updated and adopted annually.
o Internal Control Review
The City is responsible for ensuring an adequate internal control structure is in place. The
internal control structure is subject to constant evaluation by the management of the City and
annual review by independent auditors. Reviews determine the adequacy of the internal
control structure, as well as to determine if the City complied with applicable laws and
regulations. In reviewing internal control structures, the cost of a control should not exceed
the benefits to be derived, hence the objective is to provide reasonable, rather than absolute
assurance, that the financial statements are free of any material misstatements. The results
of the City’s annual audit for the fiscal year ended June 30, 2021 provided no instances of
material weaknesses in the internal control structure or significant violations of applicable
laws and regulations.
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AWARDS AND ACKNOWLEDGEMENTS
The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City
for its ACFR for the fiscal year ended June 30, 2020. This was the thirtieth year that the City has
received this prestigious award. The Certificate of Achievement is the highest form of recognition
in the area of governmental accounting and financial reporting, and its attainment represents a
significant accomplishment by a government and its management. To be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized ACFR. This
report must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
ACFR continues to meet the award program requirements and we are submitting it to the GFOA
to determine its eligibility for another certificate.
We would like to express our 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.
We 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 Eide Bailly LLP, the City’s independent auditors, who assisted and
contributed to the preparation of this report.
Respectfully submitted,
Isaiah Hagerman, CPA Kofi Antobam, CPA, CFE, CIA
City Manager Director of Administrative Services
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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, 2020
~P-~
Executive Director/CEO
x ORGANIZATION CHART Citizens I Rancho Mirage City Council I I I I " ., " City Manager & City Clerk City Attorney Housing Authority Executive Director Records Management .. .. I I I I I I I I I I Administrative"' " Economic ~ " lnfonnation ., " Land Use ., " Library "' " Management ., ~ Public " Public ~ " Tourism & ., Services Development & Services Services Services Safety ~ Marketi!:!Q Housing Authority Building & Accounts Enterprise Safety Adult Services Executive Citizens on Patrol Capital Improvements Community Payable Affordable Housing Resource Assistance (COPS) Relations Program Management Code Children's Engineering Accounts Compliance Services General Riverside County Public Receivable Project Management lnfonnation Government Fire Department Facilities & Fleet I nfonnation Security Planning & Circulation Maintenance Budgeting Property Management Zoning Mandated Riverside County Improvement Educational Programs Sheriffs Parks/Median Islands Contracting Program Network Programs Department & Parkways Management Regional Planning Emergency Title 25 Assistance I nfonnation / & Implementation Street Maintenance Preparedness for Mobile Home Reference Communities Special Programs Human Resources Payroll Purchasing .. .... .. .. ... ..
xi
Ted Weill
Charles Townsend
G . Dana Hobart
Richard Kite
Iris Smotrich
Isaiah Hagerman
Steven B . Quintanilla
Kristie Ramos
Kofi Antobam
Gabe Codding
Aaron Espinosa
Jeremy Gleim
Jason Jaurigue
Ryan Stendell
DIRECTORY OF OFF1CIALS
June 30, 2021
CITY COUNCIL
ADMINISTRATION
Mayor
Mayor Pro-Tern
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Clerk
Director of Administrative Services
Director of Marketing
Library & Observatory Director
Director of Development Services
Director oflnformation Services
Director of Public Works
What inspires you, inspires us. | eidebailly.com
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Independent Auditor’s Report
To 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, business-type
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, 2021, 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.
Auditor’s 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.
~~~
EideBaill~
~
CPAs & BUSINESS ADVISORS
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, business-type activities, each major fund,
and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective
changes in financial position, and where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matters
Adoption of New Accounting Standard
As described in Note 1 and 18 to the financial statements, the City adopted the provisions of GASB
Statement No. 84, Fiduciary Activities, effective July 1, 2020. Accordingly, the cumulative effect of the
accounting change as of the beginning of the year is reported in Note 18 to the financial statements. Our
opinions are not modified with respect to these matters.
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 the City’s proportionate share of the net pension liability, schedule
of pension contributions, schedule of changes in the net OPEB liability and related ratios, schedule of
OPEB contributions, and budgetary comparison schedules for the General Fund and each major special
revenue fund as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the 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 combining and individual
nonmajor fund financial statements and schedules (supplementary information), and 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
3
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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 24,
2021, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulation, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of 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.
Rancho Cucamonga, California
November 24, 2021
4
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, 2021. Please
read it in conjunction with the accompanying transmittal letter and the accompanying basic
financial statements.
FINANCIAL HIGHLIGHTS
•The total assets and deferred outflows of the City exceeded its total liabilities and deferred
inflows at the close of the fiscal year 2020-21 by $290,135,040 (net position). Of this amount,
$78,824,200 is unrestricted net position, $32,341,107 is restricted for specific purposes and
$178,889,733 is net investment in capital assets. The City’s net position from governmental
activities increased from $285,547,904 to $287,149,975 or .6% primarily due to increases in
current assets resulting from the economy rebounding from the COVID-19 pandemic.
Revenue increases of $9.6 million or 14.4% Citywide over the prior year is primarily attributed
to increases in charges for services, operating grants and contributions, property and sales
taxes; the effects of increased activity with the COVID-19 pandemic easing up.
•The City reported a $244,588 net pension asset for its proportionate share of the net pension
liability of the Miscellaneous Plan as of June 30, 2021. In addition, a $312,513 net OPEB
asset is reported as of June 30, 2021.
•The City’s total long-term debt and liabilities increased by $3.4 million or 33.7% compared to
the prior year. The increase was primarily due to increase in accounts payable due to the
timing of payments and compensated absences increase, less time-off taken by employees.
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, deferred outflows of resources, liabilities, deferred inflows of
resources 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 and proprietary 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. Both of the government-wide financial statements
distinguish functions of the City that are principally supported by taxes and intergovernmental
revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). These
statements include all assets and liabilities and deferred inflows/outflows using the accrual basis
5
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 and the accrual basis of accounting for governmental and proprietary/enterprise
funds, respectively, 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 and deferred inflows/outflows, 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 slightly
increased this year by $365,522 or .1% from June 30, 2020, to June 30, 2021, a sign that the
effects of the COVID-19 pandemic on revenues are improving.
Reporting the City’s Most Significant Funds: Fund Financial Statements
The Fund Financial Statements provide detailed information about the most significant Funds
and not the City as a whole. Included are the General, Library, Fire Tax, Housing Authority, and
RMEA, 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 has two
types of funds—governmental and proprietary — 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. 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 another 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.
Proprietary funds are used to report the same functions presented as business-type activities in
the government-wide financial statements, only in more detail. These funds are reported using
the accrual basis of accounting. Under this method, revenues are recognized when they are
earned, and expenses are recognized when the related goods or services are delivered. The
RMEA is an example.
6
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, the City of Rancho Mirage Writers Festival Foundation 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.
THE CITY AS A WHOLE
The City’s net position at June 30, 2021 was $290,135,040 as shown in Table 1. Table 2 shows
changes in net position of $365,522 due to the reasons previously listed.
The increase in total assets of $3,416,724 or 1.1% was the result of the following: reduction in
capital assets, advances and net pension asset, higher accounts receivable balance relating to
loans, RMEA, increases in due from other governments and net OPEB asset, and decrease in
overall cash and investments due to COVID-19. The increase in total liabilities of $3,407,754 or
33.7% was mainly due to an increase of $3,449,087 in accounts payable and a decrease of
$1,625,152 in due to other governments due to timing of payments in the current year, and an
increase of $1,234,131 in deposits payable resulting from the implementation of GASB 84.
2021 2020 2021 2020 2021 2020
Current and other assets 120,870,609$ 114,808,518$ 5,811,903$ 6,705,152$ 126,682,512$ 121,513,670$
Capital assets 179,001,244 180,753,362 - - 179,001,244 180,753,362
Total Assets 299,871,853 295,561,880 5,811,903 6,705,152 305,683,756 302,267,032
Deferred outflows of resources:
Deferred amount pensions & OPEB 1,822,941 1,696,366 - - 1,822,941 1,696,366
Long-term debt outstanding 1,827,033 1,466,551 - - 1,827,033 1,466,551
Other liabilities 8,866,971 6,162,999 2,826,838 2,483,538 11,693,809 8,646,537
Total Liabilities 10,694,004 7,629,550 2,826,838 2,483,538 13,520,842 10,113,088
Deferred inflows of resources:
Deferred amount pensions & OPEB 3,850,815 4,080,792 - - 3,850,815 4,080,792
Net position:
Net investment in capital assets 178,889,733 180,620,208 - - 178,889,733 180,620,208
Restricted 32,421,107 30,794,566 - - 32,421,107 30,794,566
Unrestricted 75,839,135 74,133,130 2,985,065 4,221,614 78,824,200 78,354,744
Total Net Position $ 287,149,975 $ 285,547,904 $ 2,985,065 $ 4,221,614 $ 290,135,040 $ 289,769,518
Total
Table 1
Net Position
As of June 30, 2021 and 2020
Governmental Activities Business-type Activities
7
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, accounts for approximately 27.2% of the total net position. The
City reported positive balances in all categories of net position for its separate governmental and
business-type activities, and the City as a whole.
Summarized information for fiscal year 2021 is as follows:
2021 2020 2021 2020 2021 2020
Revenues
Program Revenues
Charges for services $ 9,257,989 $ 7,303,606 $ 17,844,550 $ 19,673,613 $ 27,102,539 $ 26,977,219
Operating grants and contributions 10,793,820 1,461,283 - - 10,793,820 1,461,283
Capital and grants contributions 916,218 811,100 - - 916,218 811,100
Taxes
Property Taxes 5,639,128 4,711,050 - - 5,639,128 4,711,050
Transient occupancy taxes 7,419,484 7,303,420 - - 7,419,484 7,303,420
Sales tax 7,128,147 6,460,797 - - 7,128,147 6,460,797
Franchise taxes 1,342,103 1,318,872 - - 1,342,103 1,318,872
Library and fire services tax 13,594,413 12,505,323 - - 13,594,413 12,505,323
Interest income, net of change in fair value 2,024,123 5,015,665 18,342 49,657 2,042,465 5,065,322
Other 285,151 34,232 - - 285,151 34,232
Total Revenues 58,400,576$ 46,925,348$ 17,862,892$ 19,723,270$ 76,263,468$ 66,648,618$
Expenses
General government 23,386,103 18,581,500 - - 23,386,103 18,581,500
Public safety 18,273,856 17,438,400 - - 18,273,856 17,438,400
Public works 10,623,648 11,405,214 - - 10,623,648 11,405,214
Cultural and recreation 4,513,621 5,304,080 - - 4,513,621 5,304,080
Interest on long-term debt and
Other charges 1,277 1,496 - - 1,277 1,496
Rancho Mirage Energy Authority - - 19,099,441 18,162,800 19,099,441 18,162,800
Total Expenses 56,798,505 52,730,690 19,099,441 18,162,800 75,897,946 70,893,490
Increase (decrease) in net position $ 1,602,071 $ (5,805,342) $ (1,236,549) $ 1,560,470 $ 365,522 $ (4,244,872)
Net Position - Beginning of Year 285,547,904 291,353,246 4,221,614 2,661,144 289,769,518 294,014,390
Net Position - End of Year 287,149,975 285,547,904 2,985,065 4,221,614 290,135,040 289,769,518
Total
Table 2
Changes in Net Position
For the Year Ended June 30, 2021 and 2020
Governmental Activities Business-type Activities
Sources of Revenue
Interest
8
The City’s total revenues increased from $66,648,618 to $76,263,468 which represents a
$9,614,850 or 14.4% increase. Of this increase, the City’s governmental activities account for
$11,475,228 or 24.5%. Charges for services, property taxes, sales tax and operating grants and
contributions account for most of the increase for the current year, mainly due to increased
activities and the change in unavailable revenue compared to the prior year. The City’s business-
type activities’ revenue decreased $1,860,378 or 9% over the prior year. This decrease is
primarily the result of lower customer electricity usage as COVID-19 stay-home orders eased up
compared to the prior year.
Total cost of all City operations increased to $75,897,946 compared to $70,893,490 in the
previous year, which represents an increase of $5,004,456 or 7.1%. Governmental activities
increased $4,047,815 or 7.7%. The primary reason for the increase in expense is increased
public safety costs and costs associated with the Great Plates program that the City administered
during the COVID-19 pandemic. Business-type activities increased $936,641 or 5.2%. This was
mainly due to increased cost of purchased electricity compared to the prior year.
Taxes
■ Property Taxes
■ Transient Occupancy Tax
■ Sales Tax
■ other
Functional Expenses
Public Works Cultural &
9
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.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds. The focus of the City's governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City's financing requirements. In particular, unassigned fund balance may serve
as a useful measure of a government's net resources available for spending at the end of the
fiscal year.
At year-end the City’s Governmental Funds reported a combined fund balance of $103,216,387.
This includes the General Fund’s total fund balance of $70,795,280 of which $57,325,325 is
committed, $7,785,443 is unassigned and $5,687,512 is in non-spendable form. The General
Fund’s fund balance decreased by $5,294,715 primarily due to increased public safety costs
and the Great Plates program administered during the COVID-19 pandemic.
The General Fund’s financial statements include the financial activities of the License Tax Fund,
the COPS (Citizens Option for Public Safety) Fund, the Agua Caliente Band of Cahuilla Indians
(ACBCI) Fee Fund, the Tourism and Marketing Fund, Traffic Safety Fund, the Community
Facilities District Fund, and the Customer Deposits Fund.
The General Fund’s fund balance includes committed fund balance for prudent reserve, disaster
recovery, capital projects, economic development, library and observatory, and public safety.
For more information refer to footnote 15.
Total Cost of
Services
Net Cost of
Services
Total Cost of
Services
Net Cost of
Services
General Government $ 23,386,103 $ 6,510,659 $ 18,581,500 $ 13,278,481
Public Safety 18,273,856 16,999,707 17,438,400 16,091,010
Public Works 10,623,648 8,678,611 11,405,214 9,423,752
Cultural and recreation 4,513,621 3,640,224 5,304,080 4,359,962
Interest on long-term debt
& other charges 1,277 1,277 1,496 1,496
Totals $ 56,798,505 $ 35,830,478 $ 52,730,690 $ 43,154,701
Table 3
Net Cost of Governmental Activities
As of June 30, 2021 and 2020
2021 2020
10
Other major funds:
•The Library Fund’s fund balance increased to $3,912,261 from $3,407,853, primarily
because of the cancellation of programs due to the COVID-19 pandemic resulting in lower
expenditures coupled with increase in revenue.
•The Fire Tax Fund’s total fund balance increased slightly to $72,565 from $72,539 due to
additional revenue from medical billing program. Currently it is anticipated that the General
Fund will continue to provide an operating subsidy in the 2021-22 and future fiscal years.
•The Housing Authority’s total fund balance increased from $13,761,336 to $14,881,191 due
to a one-time revenue from interest on SERAF loans to the former Redevelopment Agency.
Proprietary Funds. The City’s proprietary fund provides the same type of information found in
the government-wide financial statement, but in more detail. The City has one proprietary fund,
RMEA.
The net position of the RMEA at the end of the 2020-21 fiscal year was $2,985,065, a decrease
of $1,236,549 or 29.3%. This was primarily due to increased cost of energy purchased and use
of reserves to supplement a very minimal rate increase for customers.
General Fund Budgetary Highlights
Revenues: A few mid-year budget adjustments were needed to be approved by Council. See
the Budgetary Comparison Schedule for details. Actual revenues exceeded the final budget by
$3,195,599. The increase was primarily due to a faster than anticipated rebound from the
pandemic by the tourism industry, an active real estate market, and developmental activity. Final
year-end expenditures and transfers exceeded revenues by $10,878,639 primarily due to
expenditures relating to the Great Plates program administered during the COVID-19 pandemic.
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 of $37,388,007 were $4,180,625 less than the final budget
primarily due to delays in capital purchases and budgeted capital improvement projects not
being completed by the end of the fiscal year ($1,615,814), decrease in anticipated subsidy for
public safety ($488,620), and various reduction in expenditures due to conservative spending.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of Fiscal Year 2020, the City had $179,001,244 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 $1,752,118 or
1.0% over the prior fiscal year. The decrease is primarily due to depreciation expense of
$6,581,492 exceeding additions and deletions. Business-type activities have no capital assets.
More detailed information regarding the activity for the year ended June 30, 2021 can be found
in the notes to the financial statements section (note 6).
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Debt
At year-end the City’s governmental activities had a total of $1,827,033 in DOE Loan, claims
payable, and compensated absences compared to a prior year total of $1,466,551. The increase
of $360,482 or 24.6% is primarily due to increase in compensated absences, the result of less
time-off taken due to the COVID-19 pandemic and increase in claims payable. More detailed
information can be found in note 7 to the basic financial statements.
2021 2020
Land & Rights of way 49,425,153$ 48,296,014$
Buildings and improvements 61,091,345 63,265,244
Furniture, Fixtures & Equipment 1,752,508 2,511,809
Infrastructure 59,269,080 62,114,075
Work-in-Progress 7,463,158 4,566,220
Totals 179,001,244$ 180,753,362$
Table 4
Capital Assets at Year-End
(Net of Depreciation)
As of June 30, 2021 and 2020
Government Activities
2021 2020
ARRA- DOE Loan 111,511$ 133,154$
Claims Payable 210,361 97,211
Compensated Absences 1,505,161 1,236,186
Totals 1,827,033$ 1,466,551$
Table 5
Outstanding Debt at Year-End
As of June 30, 2021 and 2020
Government Activities
Work-in-Progress
Infrastructure
Furniture, Fixtures & Equipm ent
Buildings and improvements
Land & Rights of way
$-$10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000
I 2021
1 2020
12
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Current economic projections continue to project gradual improvement in economic growth.
California continues to see improving unemployment rates and slight projected growth in sales
tax.
The City closed the fiscal year with a healthy general fund balance of $70,795,280, a decrease
of $5,294,715 from the prior year. The decrease is the result of increased public safety costs
and administering of the Great Plates program during the COVID-19 pandemic. The General
Fund budget for fiscal year 2021-22 has budgeted operating revenues of $28,784,252 and
operating expenditures of $28,098,990. The status of revenues and expenditures will also be
reviewed during the mid-year budget review in February/March 2022. The City has committed
fund balance for several capital projects over the next few years.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and
creditors with a general overview of the City’s finances and to show the City’s accountability for
the money it receives. If you have questions about this report or need additional financial
information, contact the City’s Finance Department at the City of Rancho Mirage, 69-825
Highway 111, Rancho Mirage, California 92270, (760) 770-3207 or visit the City’s website at
www.ranchomirageca.gov.
See Notes to Financial Statements 13
City of Rancho Mirage, California
Statement of Net Position
June 30, 2021
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 101,131,337$ 1,005,369$ 102,136,706$
Receivables
Interest 260,264 - 260,264
Accounts 1,528,054 4,871,534 6,399,588
Loans 6,726,171 - 6,726,171
Due from other governments 10,379,898 - 10,379,898
Prepaid items 82,784 140,000 222,784
Internal balances 205,000 (205,000) -
Net pension asset 244,588 - 244,588
Net OPEB asset 312,513 - 312,513
Capital assets
Non-depreciable capital assets 56,888,311 - 56,888,311
Depreciable capital assets, net 122,112,933 - 122,112,933
Total assets 299,871,853 5,811,903 305,683,756
Deferred Outflows of Resources
Deferred amount related to pensions 1,273,327 - 1,273,327
Deferred amount related to OPEB 549,614 - 549,614
Total deferred outflows of resources 1,822,941 - 1,822,941
Liabilities
Accounts payable 5,890,495 2,826,838 8,717,333
Due to other governments 1,348,760 1,348,760
Accrued salaries and benefits 303,450 - 303,450
Deposits payable 1,324,266 - 1,324,266
Long-term liabilities
Due within one year 450,740 - 450,740
Due in more than one year 1,376,293 - 1,376,293
Total liabilities 10,694,004 2,826,838 13,520,842
Deferred inflows of resources
Deferred amount related to pensions 3,302,383 - 3,302,383
Deferred amount related to OPEB 548,432 - 548,432
Total deferred inflows of resources 3,850,815 - 3,850,815
Net position
Net investment in capital assets 178,889,733 - 178,889,733
Restricted for
Public safety 87,394 - 87,394
Public works 10,331,259 - 10,331,259
Cultural and recreation 7,121,263 - 7,121,263
Affordable housing 14,881,191 - 14,881,191
Unrestricted 75,839,135 2,985,065 78,824,200
Total net position 287,149,975$ 2,985,065$ 290,135,040$
See Notes to Financial Statements 14 City of Rancho Mirage, California Statement of Activities Year Ended June 30, 2021 OperatingCapitalTotalCharges forGrants and Grants andProgramGovernmental Business-typeFunctions/ProgramsExpensesServicesContributionsContributionsRevenuesActivitiesActivitiesTotalGovernmental ActivitiesGeneral government(23,386,103)$ 6,516,923$ 10,026,510$ 332,011$ 16,875,444$ (6,510,659)$ -$ (6,510,659)$ Public safety(18,273,856) 1,214,233 24,399 35,517 1,274,149 (16,999,707) - (16,999,707) Public works(10,623,648) 887,432 521,915 535,690 1,945,037 (8,678,611) - (8,678,611) Cultural and recreation(4,513,621) 639,401 220,996 13,000 873,397 (3,640,224) - (3,640,224) Interest on long-term debt and other charges(1,277) - - - - (1,277) - (1,277) Total governmental activities(56,798,505) 9,257,989 10,793,820 916,218 20,968,027 (35,830,478) - (35,830,478) Business-type ActivitiesRancho Mirage Energy Authority(19,099,441) 17,844,550 - - 17,844,550 - (1,254,891) (1,254,891) Total primary government(75,897,946)$ 27,102,539$ 10,793,820$ 916,218$ 38,812,577$ (35,830,478) (1,254,891) (37,085,369) General RevenuesTaxesProperty taxes5,639,128 - 5,639,128 Transient occupancy taxes7,419,484 - 7,419,484 Sales taxes7,128,147 - 7,128,147 Franchise taxes1,342,103 - 1,342,103 Library and fire services taxes13,594,413 - 13,594,413 Interest income, net of change in fair value2,024,123 18,342 2,042,465 Other285,151 - 285,151 Total general revenues37,432,549 18,342 37,450,891 Change in Net Position1,602,071 (1,236,549) 365,522 Net Position, Beginning of Year285,547,904 4,221,614 289,769,518 Net Position, End of Year287,149,975$ 2,985,065$ 290,135,040$ Program RevenuesPrimary GovernmentNet (Expense) Revenue and Changes in Net Position
See Notes to Financial Statements 15
City of Rancho Mirage, California
Balance Sheet - Governmental Funds
June 30, 2021
Housing Non major Total
General Library Fire Tax Authority Governmental Governmental
Fund Fund Fund Fund Funds Funds
Assets
Cash and investments 68,706,250$ 3,978,294$ 1,273,247$ 13,757,069$ 13,416,477$ 101,131,337$
Receivables
Interest 189,944 2,449 159 34,264 33,448 260,264
Accounts 1,497,709 154 2,620 958 26,613 1,528,054
Loans 5,604,662 - - 1,121,509 - 6,726,171
Due from other governments 9,785,677 - 165,611 - 428,610 10,379,898
Due from other funds 205,000 37,186 42,618 - - 284,804
Prepaid items 79,850 2,934 - - - 82,784
Total assets 86,069,092$ 4,021,017$ 1,484,255$ 14,913,800$ 13,905,148$ 120,393,312$
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities
Accounts payable 5,476,422$ 43,805$ 25,744$ 23,216$ 321,308$ 5,890,495$
Accrued salaries and benefits 226,969 64,951 - 9,393 2,137 303,450
Due to other governments - - 1,348,760 - - 1,348,760
Due to other funds 42,618 - 37,186 - - 79,804
Deposits payable 1,324,266 - - - - 1,324,266
Total liabilities 7,070,275 108,756 1,411,690 32,609 323,445 8,946,775
Deferred Inflows of Resources
Unavailable revenue 8,203,537 - - - 26,613 8,230,150
Fund Balances
Non-spendable 5,684,512 2,934 - - - 5,687,446
Restricted - 3,909,327 72,565 14,881,191 13,555,090 32,418,173
Committed 57,325,325 - - - - 57,325,325
Unassigned 7,785,443 - - - - 7,785,443
Total fund balance 70,795,280 3,912,261 72,565 14,881,191 13,555,090 103,216,387
Total liabilities, deferred inflows of
resources and fund balances 86,069,092$ 4,021,017$ 1,484,255$ 14,913,800$ 13,905,148$ 120,393,312$
Special Revenue Funds
See Notes to Financial Statements 16
City of Rancho Mirage, California
Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Funds
June 30, 2021
Amounts reported for governmental activities in the statement of net position
are different because:
Total fund balances - total governmental funds 103,216,387$
Capital assets net of related accumulated depreciation have not been included
as financial resources in governmental fund activity
Non-depreciable capital assets 56,888,311
Depreciable capital assets 234,250,618
Accumulated depreciation (112,137,685)
Long term liabilities and related balances and compensated absences have
not been included in the governmental fund activity
DOE ARRA loan payable (111,511)
Claims payable (210,361)
Compensated absences (1,505,161)
Net pension asset 244,588
Net OPEB asset 312,513
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 inflows of resources - unavailable revenue in governmental funds. 8,230,150
Deferred outflows of resources related to pensions 1,273,327
Deferred outflows of resources related to OPEB 549,614
Deferred inflows of resources related to pensions (3,302,383)
Deferred inflows of resources related to OPEB (548,432)
Net position of governmental activities 287,149,975$
See Notes to Financial Statements 17
City of Rancho Mirage, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds
Year Ended June 30, 2021
Housing Non major Total
General Library Fire Tax Authority Governmental Governmental
Fund Fund Fund Fund Funds Funds
Revenues
Taxes 18,991,747$ 996,076$ 2,466,641$ -$ 1,221,611$ 23,676,075$
Intergovernmental 3,924,772 2,175,324 1,147,531 - 798,981 8,046,608
Licenses and permits 946,506 - - 13,625 - 960,131
Charges for services 2,751,183 5,200 1,035,412 1,593,387 176,104 5,561,286
Fines and forfeitures 169,981 747 - - - 170,728
Special assessments 5,510,040 316,204 1,009,463 - 1,545,127 8,380,834
Developer fees 111,267 - - - 1,001,065 1,112,332
Interest income 1,188,693 37,881 8,587 244,012 349,639 1,828,812
Net change in fair value of investments (1,387,186) 11,951 (1,038) (152,245) (333,414) (1,861,932)
Miscellaneous 730,494 3,357 479 2,305,187 237,429 3,276,946
Total revenues 32,937,497 3,546,740 5,667,075 4,003,966 4,996,542 51,151,820
Expenditures
Current
General government 19,186,321 - - 2,168,871 204,410 21,559,602
Public safety 10,690,147 - 7,473,067 - - 18,163,214
Public works 3,676,476 - - - 791,305 4,467,781
Cultural and recreation - 2,839,187 - - 625,056 3,464,243
Capital outlay 3,638,825 223,359 33,476 - 3,246,574 7,142,234
Debt service
Principal - 21,643 - - - 21,643
Interest - 1,277 - - - 1,277
Total expenditures 37,191,769 3,085,466 7,506,543 2,168,871 4,867,345 54,819,994
Excess (Deficiency) of Revenues
over (under) Expenditures (4,254,272) 461,274 (1,839,468) 1,835,095 129,197 (3,668,174)
Other Financing Sources (Uses)
Transfers in 782,404 108,243 1,839,494 - 13,725 2,743,866
Transfers out (1,822,847) (65,119) - (715,240) (140,660) (2,743,866)
Total other financing sources (uses)(1,040,443) 43,124 1,839,494 (715,240) (126,935) -
Net Change in Fund Balances (5,294,715) 504,398 26 1,119,855 2,262 (3,668,174)
Fund Balances, Beginning of Year 76,089,995 3,407,863 72,539 13,761,336 13,552,828 106,884,561
Fund Balances, End of Year 70,795,280$ 3,912,261$ 72,565$ 14,881,191$ 13,555,090$ 103,216,387$
Special Revenue Funds
See Notes to Financial Statements 18
City of Rancho Mirage, California
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of
Activities - Governmental Funds
Year Ended June 30, 2021
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balances - total governmental funds (3,668,174)$
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.
Capital outlay, net of adjustments for deletions 4,677,271
Depreciation expense, net of adjustments for deletions (6,429,389)
Payment of debt service principal is an expenditure in the governmental
funds, however, the payment reduces long-term liabilities in the statement
of net position.
DOE-ARRA Loan 21,643
Some expenses reported in the statement of activities do not require the use
of current financial resources and, therefore, are not reported as expenditures
in the governmental funds. The following represents the net change for the
current period:
Compensated absences (268,975)
Claims payable (113,150)
Certain revenues were collected after year end, but were not available soon
enough to pay prior period expenditures, and were therefore reported as
unavailable revenue in governmental funds. This amount represents the net
change in unavailable revenue.7,248,756
Governmental funds report pension contributions as expenditures.
However, in the statement of activities, pension expense is measured
as the change in net pension liability and the amortization of deferred
outflows and inflows related to pensions. This amount represents
the net change in pension related amounts (244,371)
Governmental funds report OPEB contributions as expenditures. However,
in the statement of activities, OPEB expense is measured as the change
in the net OPEB liability and the amortization of deferred outflows and
inflows related to OPEB. This amount represents the net change in
OPEB related amounts.378,460
Change in net position of governmental activities 1,602,071$
See Notes to Financial Statements 19
City of Rancho Mirage, California
Statement of Net Position - Proprietary Funds
June 30, 2021
Enterprise Fund
Rancho Mirage
Energy Authority
Assets
Cash and investments 1,005,369$
Accounts receivable 4,871,534
Prepaid items 140,000
Total assets 6,016,903
Liabilities
Accounts payable 2,826,838
Due to other funds 205,000
Total liabilities 3,031,838
Net Position
Unrestricted 2,985,065$
See Notes to Financial Statements 20
City of Rancho Mirage, California
Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds
Year Ended June 30, 2021
Enterprise Fund
Rancho Mirage
Energy Authority
Operating Revenues
Charges for services 17,844,550$
Total operating revenues 17,844,550
Operating Expenses
Operations 19,099,441
Total operating expenses 19,099,441
Operating Income (Loss)(1,254,891)
Nonoperating Revenues (Expenses)
Investment income 18,342
Total nonoperating revenues (expenses)18,342
Changes in Net Position (1,236,549)
Net Position, Beginning of the Year 4,221,614
Net Position, End of Year 2,985,065$
See Notes to Financial Statements 21
City of Rancho Mirage, California
Statement of Cash Flows - Proprietary Funds
Year Ended June 30, 2021
Enterprise Fund
Rancho Mirage
Energy Authority
Operating Activities
Cash received from customers 17,189,430$
Cash payments to suppliers for goods and services (18,710,141)
Net Cash from Operating Activities (1,520,711)
Investing Activities
Interest received 18,342
Net Change in Cash and Cash Equivalents (1,502,369)
Cash and Cash Equivalents, Beginning of Year 2,507,738
Cash and Cash Equivalents, End of Year 1,005,369$
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)(1,254,891)$
Changes in
Accounts receivable (655,120)
Prepaids 46,000
Accounts payable 346,073
Deferred revenue (2,773)
Net Cash from Operating Activities (1,520,711)$
See Notes to Financial Statements 22
City of Rancho Mirage, California
Statement of Fiduciary Net Position
June 30, 2021
Redevelopment
Successor Agency
Private-purpose Custodial
Trust Fund Funds
Assets
Cash and investments 5,846,915$ 4,245,044$
Cash and investments with fiscal agent 2,924,118 1,932,599
Receivables:
Interest - 9,448
Loans 17,336 -
Due from other governments - 106,788
Prepaid items 762,304 -
Total assets 9,550,673 6,293,879
Liabilities
Accounts payable 363 71,641
Deposits payable 91,500 1,430,524
Due to bondholders - 216,839
Interest payable 743,143 -
Long-term liabilities:
Due within one year 7,766,781 -
Due in more than one year 69,998,428 -
Total liabilities 78,600,215 1,719,004
Net Position (Deficit)
Held in trust for beneficiaries (69,049,542) -
Restricted for:
Bondholders - 2,353,332
Investment pool participants - 31,450
Rancho Mirage Writers Festival - 2,190,093
Total net position (deficit)(69,049,542)$ 4,574,875$
See Notes to Financial Statements 23
City of Rancho Mirage, California
Statement of Changes in Fiduciary Net Position
For the year ended June 30, 2021
Redevelopment
Successor Agency
Private-purpose Custodial
Trust Fund Funds
Additions
Property taxes 11,017,970$ -$
Investment earnings (9,611) 22,657
Rancho Mirage Writers Festival - 449,332
Special assessments - 1,633,534
Total additions 11,008,359 2,105,523
Deductions
General government 2,443,823 -
Interest and fiscal charges 2,976,020 -
Administrative Expense - 54,647
Debt service:
Principal - 705,000
Interest - 646,166
Rancho Mirage Writers Festival - 421,511
Total deductions 5,419,843 1,827,324
Change in Net Position 5,588,516 278,199
Net Position/(Deficit), Beginning of Year (Restated)(74,638,058) 4,296,676
Net Position/(Deficit), End of Year (69,049,542)$ 4,574,875$
24
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Note 1 - Significant Accounting Policies
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.
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, retail electricity, 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 Rancho Mirage Housing Authority,
the Community Services District, and the Library and Observatory Foundation are considered to be component
units of the City.
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.
25
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Community 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 and Observatory Foundation
The Library and Observatory Foundation (Foundation) was created in September 2010, to raise funds on behalf
of the Library. The Foundation is a legally separate entity. The City Council appoints a voting majority of the
Foundation’s Board. Additionally, the Foundation almost exclusively benefits the primary government 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.
Related Organization
Rancho Mirage Writer’s Festival Foundation
The Rancho Mirage Writer’s Festival Foundation (Foundation) was created in March 2015, to organize an annual
festival for writers and readers within the City of Rancho Mirage and to raise funds to accomplish that goal. The
Foundation is a legally separate entity. Separate financial statements of the Foundation are available at City Hall,
69-825 Highway 111, Rancho Mirage, California 92270.
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
Government-wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole, except
for its fiduciary activities. These statements include separate columns for the governmental and business-type
activities of the primary government (including its blended component units).
Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only
once (by the function to which they were allocated). However, general government expenses have not been
allocated as indirect expenses to the various functions of the City.
26
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
The government-wide financial statements are reported using the economic resources measurement focus a nd
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
government-wide financial statements, rather than as another 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, deferred inflows of resources, 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, proprietary, 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 and proprietary 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.
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 for all revenues except for reimbursements
of capital costs. The availability period for capital cost reimbursements is 180 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
government.
27
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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 the nature of their spending measurement focus, expenditure recognition for governmental 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.
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 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.
Proprietary Fund
The City’s enterprise fund is a proprietary fund. The proprietary fund financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting. Proprietary funds distinguish
operating revenues and expenses from non-operating items. Operating revenues and expenses generally result
from providing services and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for
services. Operating expenses for the proprietary funds include the cost of services, administrative expenses, and
depreciation of capital assets.
All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
28
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Fiduciary Funds
Fiduciary funds, including the private-purpose trust fund, use the economic resources measurement focus and
the accrual basis of accounting.
Fund Classifications
The City reports the following major governmental funds.
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 funds are accounted for in this fund. This fund
pays the general operating expenditures and capital improvement costs which are not paid through other funds.
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.
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.
The Housing Authority Fund is used to account for charges for services related to four properties and is
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.
The City reports the following major enterprise fund.
The Rancho Mirage Energy Authority is used to account for the revenues and expenses associated with providing
retail electric service to customers residing and doing business within the City’s jurisdictional boundaries.
Additionally, the City reports the following funds:
The Redevelopment Successor Agency Private-Purpose Trust Fund was created as part of the dissolution of the
Redevelopment Agency. The fund accounts for the ass ets, 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.
The City's Custodial Fund is used to account for assessment collections and debt service payments of assessment
districts, CFD No. 4 Del Webb and CFD No. 5 Section 31 whose debt is not an obligation of the City, the Writers
Festival Foundation, the Joslyn Center and the Children’s Discovery Museum’s cash and investments which are
pooled with the City’s cash and investments. These funds are custodial in nature (assets equal liabilities) and do
not involve the recording of City revenues and expenses.
29
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
New Accounting Pronouncements
Effective in Current Year
GASB Statement No. 84 – In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective of
this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and
financial reporting purposes and how those activities should be reported. This Statement is effective for
reporting periods beginning after December 15, 2019. The City has implemented this Statement effective July 1,
2020.
GASB Statement No. 90 – In September 2018, the GASB issued Statement No. 90, Majority Equity Interests, An
Amendment of GASB Statements No. 14 and No. 61. The objectives of this Statement are to improve the
consistency and comparability of reporting a government’s majority equity interest in a legally separate
organization and to improve the relevance of financial statement information for certain component units. The
Statement is effective for reporting periods beginning after December 15, 2019. The City has implemented this
Statement effective July 1, 2020.
GASB Statement No. 98– In October 2021, the GASB issued Statement No. 98, The Annual Comprehensive
Financial Report. The statement establishes the term annual comprehensive financial report and its acronym
ACFR. The new term and acronym replaces instances of comprehensive annual financial report and its acronym
in generally accepted accounting principles for state and local governments. The Commission implemented this
statement effective July 1, 2020.
Effective in Future Years
The City is currently evaluating the potential impact of the following issued, but not yet effective, accounting
standards.
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases. The objective of this Statement
is to better meet the information needs of financial statement users by improving accounting and financial
reporting for leases; enhancing the comparability of financial statements between governments; and also
enhancing the relevance, reliability (representational faithfulness), and consistency of information about the
leasing activities of governments. This Statement is effective for reporting periods beginning after June 15, 2021.
GASB Statement No. 89 – In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred
Before the End of a Construction Period. The objectives of this Statement are (a) to enhance the relevance and
comparability of information about capital assets and the cost of borrowing for a reporting period and (b) to
simplify accounting for certain interest costs. This Statement is effective for reporting periods beginning after
December 15, 2020.
GASB Statement No. 91 – In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The
objective of this Statement is to provide a single method of reporting conduit debt obligations by issues and
eliminate diversity in practice. The Statement is effective for reporting periods beginning after December 15,
2021.
30
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
GASB Statement No. 92 – In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The objectives of
this Statement are to enhance comparability in accounting and financial reporting to improve the consistency of
authoritative literature by addressing practices issues that have been identified during implementation and
application of certain GASB Statements. The Statement is effective for reporting periods beginning after June 15,
2021.
GASB Statement No. 93– In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered
Rates. The objective of this Statement is to address the accounting and financial reporting implications that
result from the replacement of an IBOR. The Statement is effective for reporting periods beginning after
June 15, 2021.
GASB Statement No. 94– In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public
Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial
reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The
Statement is effective for reporting periods beginning after June 15, 2022.
GASB Statement No. 96– In May 2020, the GASB issued Statement No. 96, Subscription-based Information
Technology Arrangements. The objective of this Statement is to provide guidance on the accounting and
financial reporting for subscription-based information technology arrangements (SBITAs) for government end
users (governments). The Statement is effective for reporting periods beginning after June 15, 2022.
GASB Statement No. 97– In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and
Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An
Amendment of GASB Statement No.14 and No.84 and A Supersession of GASB Statement No.32. The objective
of this Statement is (1) increase consistency and comparability related to the reporting of fiduciary component
units in circumstances in which a potential component unit does not have a governing board and the primary
government performs the duties that a governing board typically would perform; (2) mitigate costs associated
with the reporting of certain defined contribution pension plans, defined contribution other postemployment
benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee
benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the
relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code
(IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan
and for benefits provided through those plans. The Statement is effective for reporting periods beginning after
June 15, 2021.
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.
31
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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 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.
Cash and Investments
Investments are reported in the accompanying balance sheet at fair value, except for non-negotiable 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 categorized the fair value measurements for its investments based on the hierarchy established by
generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the
valuation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
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.
Cash and Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid
investments that are both readily convertible to known amounts of cash or so near their maturity that they
present insignificant risk of changes in value because of changes in interest rates. Cash equivalents have an
original maturity date of three months or less from the date of purchase. For purposes of the statement of cash
flows, the entire balance of cash and investments with fiscal agent on the balance sheet for the proprietary
funds is considered cash and cash equivalents.
32
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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
acquisition value at the date of the contribution. Generally, capital asset purchases in excess of $10,000 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 government-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
Property Taxes
Property taxes are assessed and collected each fiscal year according to the following property tax calendar:
Lien Date January 1
Levy Date July 1
Due Date November 1 (first installment)
February 1 (second installment)
Delinquent Date December 10 (first installment)
April 10 (second installment)
Under California law, property taxes are assessed and collected by the counties up to 1 percent of assessed
value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to
the cities based on complex formulas prescribed by the state statutes. A delinquency penalty of 10 percent is
assessed by the County of Riverside. If taxes become delinquent, subject properties may be deeded to the State
and may be sold by the County for taxes plus a 1.5 percent per month redemption fee.
The City accrues as a receivable all property taxes normally received from the County within sixty days of the
end of the fiscal year.
33
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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 self-insured for unemployment claims.
Accounting for Self-Insurance Activities
The City records a liability for litigation, judgments, and claims (including claims incurred, but not reported)
when it is probable that an asset has been impaired, or a liability has been incurred prior to year-end and the
probable amount of loss (net of any insurance recovery) can be reasonably estimated. Liabilities resulting from
self-insurance activities are recorded as claims payable in the government-wide financial statements since these
liabilities are funded on a pay-as-you-go basis in the funds and are not payable from currently available financial
resources.
Interfund Borrowing
Due from and Due to other funds represent short term borrowings.
Transient Occupancy Tax
In accordance with Section 3.24.030 of the City’s Municipal Code, the City assesses a 10 percent occupancy tax
on all lodgings furnished to transient guests within the jurisdictional boundaries of the City. The tax is collected
by operators of such lodgings and remitted to the City monthly by filing a transient occupancy tax return. The
City earmarks 10 percent of all occupancy tax revenue generated for tourism and marketing per Section
3.24.032 of the City’s Municipal Code. Approximately 29 percent of the General Fund revenue is derived from
transient occupancy tax.
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 probable 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
government-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.
34
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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. All full-time employees
receive service credits with California Public Employees Retirement System for accrued sick leave.
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.
Prepaid Items
Prepaid items are reported using the consumption method.
Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts and disclosures 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.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outflows of resources. Deferred outflows of resources represents a consumption of net position that applies to a
future period and so will not be recognized as an outflow of resources until then.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred
inflows of resources. Deferred inflows of resources represents an acquisition of net position that applies to a
future period and so will not be recognized as an inflow of resources until that time.
For the governmental funds, the City has one item which qualifies for reporting in this category (under the
modified accrual basis of accounting). Accordingly, the item, unavailable revenue, is reported only in the
governmental funds balance sheet and represents una vailable revenues not collected within the City’s period of
availability of 60 days. These amounts are deferred and recognized as inflows of resources in the period that the
amounts becomes available. At the government-wide statements, this item is eliminated and recognized as
revenue in the period earned since “availability” of resources is not a criteria used in the government-wide
statements.
Refer to Note 10 and Note 11 for details regarding deferred outflows (inflows) of resources related to pensions
and OPEB.
35
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of City’s
participation in the California Public Employees Retirement System (CalPERS) plan and additions to/deductions
from the plan’s fiduciary net position have been determined on the same basis as they are reported to CalPERS.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
OPEB
For purposes of measuring the net OPEB liability/asset, deferred outflows of resources and deferred inflows of
resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan
(OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on
the same basis as they are reported to CalPERS. For this purpose, benefit payments are recognized when
currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the reported results pertain to liability and asset
information with certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Note 2 - Cash and Investments
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:
Statement of net position
Cash and investments 102,136,706$
Fiduciary funds
Cash and investments 10,091,959
Cash and investments with fiscal agent 4,856,717
Total cash and investments 117,085,382$
Total City deposits and investments at fair value as of June 30, 2021 are reported as follows:
Cash on hand 3,154$
Deposits with financial institutions 6,773,672
Investments 110,308,556
Total cash and investments 117,085,382$
36
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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.
Authorized *Maximum
By Investment *Maximum Percentage
Investment Types Policy Maturity Allowed
U.S. Treasury Obligations Yes 5 years None
U.S. Agency Securities Yes 5 years None
Certificates of Deposit Yes 5 years None
Negotiable Certificates of Deposit Yes 5 years 30%
Repurchase Agreements Yes 1 year None
Money Market Mutual Funds Yes N/A 20%
California Asset Management Program (CAMP)Yes N/A None
Local Agency Investment Fund (LAIF)Yes N/A $75 million**
*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.
** Limit set by LAIF governing Board not California Government Code.
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.
Investments Authorized by the Rancho Mirage Public Library and Observatory Foundation (Foundation)
Investments of the Foundation are governed by the provisions of the Foundation’s investment policy. Fixed
income securities, equity securities, exchange traded funds, and mutual funds are authorized investments under
the Foundation’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.
37
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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:
12 Months 13 to 24 25 to 36 37 to 48 49 to 60
Investment Type Or Less Months Months Months Months Total
Investments held by City
U.S. Treasury Notes -$ 19,453,644$ 19,883,613$ 5,591,594$ 9,028,234$ 53,957,085$
Federal Agency Securities 1,894,761 6,860,267 11,827,982 11,590,465 3,891,311 36,064,786
State Investment Pool (LAIF)15,113,767 - - - - 15,113,767
Investments held by fiscal agent
Federal Agency Securities 1,539,492 - - - - 1,539,492
CAMP 316,202 - - - - 316,202
Money Market Funds 3,317,224 - - - - 3,317,224
22,181,446$ 26,313,911$ 31,711,595$ 17,182,059$ 12,919,545$ 110,308,556$
Remaining Maturity (in Months)
Fair Value Classifications
Fair value measurements are categorized based on the valuation inputs used to measure fair value: Level 1
inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable
inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2 are valued using
the market approach. This approach uses prices and other relevant information generated for identical or similar
assets.
Investments' fair value measurements are as follows as of June 30, 2021:
Level 1 Level 2 Level 3 Fair Value
Investments held by City
U.S. Treasury Notes -$ 53,957,085$ -$ 53,957,085$
Federal Agency Securities - 36,064,786 - 36,064,786
Investments held by fiscal agent
Federal Agency Securities - 1,539,492 - 1,539,492
Total leveled investments -$ 91,561,363$ -$ 91,561,363
State Investment Pool (LAIF) 15,113,767
CAMP 316,202
Investments held by fiscal agent
Money market funds 3,317,224
Total 110,308,556$
Investment Type
Deposit and withdrawals in LAIF and CAMP are made on the basis of $1 and are recorded at amortized cos t
which approximates fair value. Accordingly, the City’s investment in this pool is measured based on
uncategorized inputs not defined as Level 1, 2, or 3. Money market funds are valued at net asset value $1 dollar
per share (amortized cost) and as such are uncategorized in the fair value hierarchy.
38
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the Moody’s actual rating as of year-end for each investment type.
Exempt
From Not
Disclosure Aaa AAAm Rated Total
Investments held by City
U.S. Treasury Notes 53,957,085$ -$ -$ -$ 53,957,085$
Federal Agency Securities - 36,064,786 - - 36,064,786
State Investment Pool (LAIF)- - - 15,113,767 15,113,767
Held by Fiscal Agent
Federal Agency Securities - 1,539,492 - - 1,539,492
CAMP - - 316,202 - 316,202
Money Market Funds - 3,317,224 - - 3,317,224
53,957,085$ 40,921,502$ 316,202$ 15,113,767$ 110,308,556$
Investment Type
Concentration of Credit Risk
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 Percent of
Issuer Type Amount Portfolio
Federal National Mortgage Association (FNMA)Federal agency securities 14,023,720$ 13%
The Federal Home Loan Mortgage Corporation (FHLMC)Federal agency securities 16,790,015$ 15%
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. Amounts in excess of federal depository insurance limits are
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.
39
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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 Treasure r 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.
Note 3 - Loans Receivable
Outstanding as of
June 30, 2021
General Fund 5,604,662$
Housing Authority 1,121,509
6,726,171$
The Loan Receivable of $5,604,662 in the General Fund is a result of the Agreement between the City of Rancho
Mirage and the Ritz Carlton, identified as document #2010-0024853 executed on December 3, 2010. The City
has agreed to loan the Ritz Carlton 50% of net TOT collections in excess of $250,000 received by the City for each
calendar year from transient rentals of rooms/units within the existing Hotel and Spa Suites up to $10 million.
Rebates shall not exceed $1 million dollars for any given year. The repayment of the loan will be in accordance
with the terms of the agreement, but will commence no later than December 31, 2028.
The Loan Receivable of $1,121,509 in the Housing Authority Fund relates to Promissory Note 1, dated
October 12, 2000 for the Las Colinas Senior Residential Project. The loan bears no interest and is expected to be
paid off in full in July 2030.
Remainder of page intentionally left blank.
40
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Note 4 - Due from and Due to Other Funds
Current interfund receivables and payables balances at June 30, 2021 are as follows:
General Fire Tax Rancho Mirage
Amounts due to Fund Fund Energy Authority Total
Library Fund -$ 37,186$ -$ 37,186$
Fire Tax Fund 42,618 - - 42,618
General Fund - - 205,000 205,000
42,618$ 37,186$ 205,000$ 284,804$
Amounts due from
The Library Fund receivable of $37,186 is the CSD Distribution and the year-end transfer from the CFD No. 2.
The Fire Tax Fund receivable of $42,618 is accrued revenue from the General Fund for special assessment tax
disbursements and the year-end ACBCI transfer.
The General Fund receivable of $205,000 represents funds borrowed to setup the Rancho Mirage Energy
Authority.
Note 5 - Interfund Transfers
Interfund transfers during the year ended June 30, 2021 consisted of the following:
Housing Nonmajor
General Library Authority Governmental
Fund Fund Fund Fund Total
General Fund -$ 65,119$ 576,625$ 140,660$ 782,404$
Library Fund - - 108,243 - 108,243
Fire Tax Fund 1,822,847 - 16,647 - 1,839,494
Nonmajor Governmental Funds - - 13,725 - 13,725
1,822,847$ 65,119$ 715,240$ 140,660$ 2,743,866$
Transfer From
Transfer In
Transfers are used to move revenues from the fund that statute or budget requires for collection to the fund
that statute or budget requires for expenditure. Additionally, transfers were used to:
Transfer resources from the General Fund to the Fire Tax Fund for costs associated with public safety
and to the Library Fund to subsidize capital related costs.
Transfers from the Library Fund, Housing Authority Fund, and Nonmajor Governmental Funds to the
General Fund to subsidize certain staffing costs.
Transfer in-lieu taxes from the Housing Authority Fund to the General Fund, Library Fund, Fire Tax Fund,
and Nonmajor Governmental Funds.
1.
2.
3.
41
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Note 6 - Capital Assets
Capital asset activity for the year ended June 30, 2021 was as follows:
Balance at Balance at
July 1, 2020 Adjustments Additions Deletions June 30, 2021
Government activities
Capital assets, not being depreciated
Land 31,206,312$ -$ 1,105,292$ -$ 32,311,604$
Rights of way - road system 16,011,843 - 23,847 - 16,035,690
Rights of way - off-road
trail system 1,077,859 - - - 1,077,859
Work in progress 4,566,220 - 3,307,053 (410,115) 7,463,158
Total capital assets, not
being depreicated 52,862,234 - 4,436,192 (410,115) 56,888,311
Capital assets, being depreciated
Buildings 73,568,284 - - - 73,568,284
Improvements 15,550,956 - 123,411 - 15,674,367
Furniture, fixtures, and equipment 7,548,637 (445,738) 495,973 - 7,598,872
Infrastructure - improved bike trails 172,155 445,738 - - 617,893
Infrastructure - road system 118,727,913 - 31,810 - 118,759,723
Infrastructure - storm drain system 18,031,479 - - - 18,031,479
Total capital assets,
being depreciated 233,599,424 - 651,194 - 234,250,618
Less accumulated depreciation
Buildings (24,062,341) 404,719 (2,399,850) - (26,057,472)
Improvements (1,791,655) 27,827 (330,006) - (2,093,834)
Furniture, fixtures, and equipment (5,036,828) (280,443) (529,093) - (5,846,364)
Infrastructure - improved bike trails (29,245) - (3,446) - (32,691)
Infrastructure - road system (67,249,908) - (3,078,667) - (70,328,575)
Infrastructure - storm drain system (7,538,319) - (240,430) - (7,778,749)
Total accumulated depreciation (105,708,296) 152,103 (6,581,492) - (112,137,685)
Total capital assets, being
depreciated, net 127,891,128 152,103 (5,930,298) - 122,112,933
Governmental activities capital
assets, net 180,753,362$ 152,103$ (1,494,106)$ (410,115)$ 179,001,244$
Depreciation expense was charged to the following functions in the statement of activities:
General government 1,881,403$
Public safety 110,642
Public works 3,540,069
Cultural and recreation 1,049,378
6,581,492$
42
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Note 7 - Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2021 was as follows:
Beginning Ending Due within
Balance Additions Retirements Balance One year
DOE-ARRA Loan 133,154$ -$ (21,643)$ 111,511$ 21,860$
Compensated absences 1,236,186 638,352 (369,377) 1,505,161 376,290
Claims payable 97,211 213,838 (100,688) 210,361 52,590
1,466,551$ 852,190$ (491,708)$ 1,827,033$ 450,740$
Compensated absences and claim payables have been typically liquidated from the general fund.
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 $317,055 was drawn on the loan. The loan accrues
simple interest at a rate of 1 percent annually. Principal and interest payments are due in 26 semi-annual
installments with the first payment due December 22, 2011. The annual debt service requirements for the
energy conservation loan as of June 30, 2021 are as follows:
Fiscal Total
Month Year Interest Principal Debt Service
December 22 2022 559$ 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 11,404 11,461
3,090$ 111,511$ 114,601$
43
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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. $4,195,000 of these bonds is outs tanding
at June 30, 2021.
On July 18, 2019 the City of Rancho Mirage Community Facilities District No. 4A (Del Webb Project) issued
$6,530,000 special tax bonds under the provisions of Mello-Roos Community Facilities Act of 1982. These bonds
are payable only from Net Special Tax Revenues derived from property within the Community Facilities District
and amounts in certain funds established under the Indenture. 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. $6,420,000 of these bonds is outstanding at June 30, 2021.
Note 9 - Participation in Risk Pool
The City is a member of Public Entity Risk Management Authority (PERMA), a joint powers insurance authority
formed under Section 990 of the California Government Code for the purpose of jointly funding programs of
insurance coverage for its members. PERMA is comprised of thirty participating member agencies: twenty cities,
four transit agencies and six special districts. The City participates in the liability, workers' compensation,
property, business auto physical damage, crime, and cyber liability 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 1, 2005, 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 Public Risk Innovation, Solutions, and Management (PRISM) for $49 million excess liability
coverage.
The workers' compensation program provides $5 million for 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 Employment Practices Liability program provides up to $1 million coverage for employment related
lawsuits, such as wrongful termination and discrimination. The City self-insures up to $25,000 per occurrence
and participates in the Employment Risk Management Authority (ERMA) for losses up to $1 million. Coverage
above $1 million and up to $50 million is available through PERMA’s membership in PRISM for liability coverage.
44
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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 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.
The City purchases crime and cyber liability insurance coverage in the amount of $5 million and $2 million,
respectively, with a $2,500 and $50,000 deductible.
In addition to coverage provided by PERMA, the City also separately purchases coverage for earthquake.
Changes in claims payable for the past two fiscal years are as follows:
Current Year
Claims and
Beginning Changes in Claim Ending
Fiscal Year Balance Estimates Payments Balance
2019-2020 132,252$ 77,055$ (112,096)$ 97,211$
2020-2021 97,211 213,838 (100,688) 210,361
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 years.
Note 10 - Cost Sharing Employer Pension Plan
Plan Description
All qualified employees are eligible to participate in the City’s Employee Pension Plan, a cost sharing multiple
employer defined benefit pension plan administered by the California Public Employees Retirement System
(CalPERS). The CalPERS Plan consists of a miscellaneous pool and a safety pool (referred to as “risk pools”),
which are comprised of individual employer miscellaneous and safety rate plans, respectively. The risk pools are
included within the Public Employees’ Retirement Fund C (PERF C). Benefit provisions under the Plan are
established by State statute and may be amended by City resolution. CalPERS issues publicly available reports
that include a full description of the pension plans regarding benefit provision, assumption and membership
information. Copies of the report can be found on the CalPERS website.
45
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Benefits Provided
CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan
members, who must be public employees, and beneficiaries. Benefits are based on years of credited service,
equal to one year of full-time employment. All members are eligible for non-duty disability benefits after 10
years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or
the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by
the Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2021, are summarized below:
Tier 1 Tier 2 PEPRA
Hire Date Prior to Classic Members New Members
July 13, 2012 Hired After Hired After
July 13, 2012 January 1, 2013
Formula 2.5% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 55 60 62
Monthly benefits, as a % of annual salary 2.50%2.00%2.00%
Required employee contribution rates 8.00%7.00%6.25%
Required employer contribution rates 12.36%8.80%7.73%
Miscellaneous
Contributions
Section 20814(c) of the California Public Employees’ Retirement law requires that the employer contribution
rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July
1 following notice of a change in rate. Funding con tributions for all Plans are determined annually on an
actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to
finance the costs of benefits earned by employees during the year, with an additional amount to finance any
unfunded accrued liability. The City is required to contribute the difference between the actuarially determined
rate and the contribution rates of employees. Contributions to the pension plan were $601,185 for the year
ended June 30, 2021.
Pension Liabilities/(Asset), Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the City reported a net pension asset for its proportionate share of the net pension liability
of the Plan of $244,588. Obligations for the net pension liability are typically liquidated from the General Fund.
The City’s net pension asset for the Plan was measured as the proportionate share of the net pension liability of
the collective cost-sharing plan. The City’s net pension liability/(asset) of the Plan was measured as of June 30,
2020 and the total pension liability for the Plan used to calculate the net pension liability/(asset) was
determined by an actuarial valuation as of June 30, 2019, and rolled forward to June 30, 2020. The City’s
proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to
the pension plan relative to the projected contributions of all participating employers, actuarially determined.
46
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
The City’s proportionate share of the net pension liability for the Plan as of June 30, 2019 and 2020 was as
follows.
Proportion - June 30, 2019 -0.00565%
Proportion - June 30, 2020 -0.00225%
Change - Increase/(Decrease)0.00340%
For the year ended June 30, 2021, the City recognized a pension expense of $845,556. At June 30, 2021, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
City contributions subsequent to the measurement date 601,185$ -$
Differences between expected and actual experience - 12,604
Differences between City contributions and
proportionate share of contributions - 2,903,815
Change in proportion 670,397 378,698
Net difference between projected and actual earnings
on pension plan investments - 7,266
Changes of assumptions 1,745 -
1,273,327$ 3,302,383$
The amount of $601,185 reported as deferred outflow s of resources related to contributions subsequent to the
measurement date will be recognized as an increase to the net pension asset in the year ended June 30, 2022.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Fiscal Year Ended June 30,
2022 (1,495,673)$
2023 (720,849)
2024 (410,233)
2025 (3,486)
2026 -
(2,630,241)$
47
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Actuarial Assumptions
The total pension liability in the June 30, 2019 actuarial valuation was determined using the following actuarial
assumptions.
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-age Normal Cost Method
Actuarial Assumptions
Discount Rate 7.15%
Inflation 2.50%
Projected Salary Increase Varies by Entry Age and Service
Mortality Derived using CalPERS' Membership Data for all Fund
Post Retirement Benefit Increase Contract COLA up to 2.5% until Purchasing Power
Protection allowance Floor on Purchasing Power applies,
2.50% thereafter
Miscellaneous
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 valuation
were based on the results of an actuarial experience study for the period of 1997 to 2015. Further details of the
Experience Study can be found on the CalPERS website.
Discount Rate
The discount rate used to measure the total pension liability/(asset) was 7.15 percent. The projection of cash
flows used to determine the discount rate assumed that employee contributions will be made at the current
contribution rate and that the City’s contributions will be made at rates equal to the difference between
actuarially determined contributions rates and the employee rate. Based on those assumptions, each pension
plan’s fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability/(asset).
In determining the long-term expected percent rate of return on pension plan investments, CalPERS took into
account both short and long-term market return expectations as well as the expected pension fund cash flows.
Based on the expected benefit payments of the Public Employees’ Retirement Fund, CalPERS indicated that a 19-
year horizon was ideal in determining the level equivalent discount rate assumption. Using historical returns of
all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first
10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns
for both short-term and long-term, the present value of benefits was calculated for each fund. The expected
rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the
nearest one quarter of one percent. The target allocation and best estimates of arithmetic real rates of return
for each major asset class are the same for the Plan. These geometric rates of return are summarized in the
following table on the next page:
48
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Long-Term Expected Long-Term Expected
Real Rate of Return Real Rate of Return
Asset Class Target Allocation Years 1-10 (1)Years 11+ (2)
Global Equity 50%4.80%5.98%
Fixed Income 28%1.00%2.62%
Inflation Sensitive 0%0.77%1.81%
Private Equity 8%6.30%7.23%
Real Estate 13%3.75%4.93%
Liquidity 1%0.00%-0.92%
100%
(1) An expected inflation of 2.00% used for this period
(2) An expected inflation of 2.92% used for this period
Sensitivity of the Net Pension Liability/(Asset) to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability/(asset), calculated using the
discount rate of 7.15 percent, as well as what the City’s proportionate share of net pension liability/(asset)
would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point
higher than the current rate:
1% Decrease Discount Rate 1% Increase
(6.15%)(7.15%)(8.15%)
City's proportionate share of the net
pension liability/(asset)8,096,792$ (244,588)$ (7,136,809)$
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial
reports.
Note 11 - Other Post Employment Benefit Plan (OPEB)
The City participates in the California Employers’ Retiree Benefit Fund (CERBT), an agent multiple-employer
defined benefit healthcare plan administered by the California Public Employees’ Retirement System (CalPERS).
A summary of the OPEB amounts for the City’s plan is shown below:
Net OPEB Liability/(Asset)(312,513)$
Deferred Outflows related to OPEB 113,125
Deferred Inflows related to OPEB 548,432
OPEB Expense 58,029
49
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Plan Description
The City has established a Retiree Service Stipend, effective July 1, 2005 and participates in an agent multiple-
employer defined benefit retiree healthcare plan administered by the CalPERS, which acts as a common
investment and administrative agent for its participating member employers. Benefit provisions under the
healthcare plan are established by the City Council. CalPERS issues a publicly available financial report that can
be found on the CalPERS website.
Benefits Provided
The Stipend is intended to provide additional compensation, above and beyond the dollar amount of the
CalPERS pension, to help cover the costs of retiree medical insurance up to age 65. The stipend is in
consideration for services rendered to the City prior to retirement. The stipend shall be available only to those
who meet the following requirements for service to the City at the time of retirement and shall cease upon the
retiree reaching the age of 65:
Minimum Age Years of Service
Age 55 10 Years Employee Coverage to Age 65
Age 55 15 Years Employee and Spouse Coverage to Age 65
Age 55 20 Years Employee, Spouse & Dependent to Age 65
Benefit
In addition, employees hired prior to July 1, 2005, who have at least 5 years of City service and who retire at age
63 or 64, shall receive employee coverage at age 65. Employees hired on or after January 1, 2016 are not eligible
for the Retiree Service Stipend. The only other pos t-employment benefit guaranteed to individuals hired on or
after January 1, 2016 is the CalPERS Public Employees’ Medical and Hospital Care Act (PEMCHA) minimum.
Employees Covered by Benefit Terms
At June 30, 2020, the most recent valuation date, the following current and former employees were covered by
the benefit terms of the plan:
Active employees 82
currently receiving benefits 55
137
Inactive employees, spouses, or beneficiaries
Contributions
The contribution requirement of plan members and th e City are established and may be amended by City
Council. Employees are not required to contribute to the Plan. Contributions recognized by the plan from the
employer for the year ended June 30, 2021 were $203,149.
50
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Net OPEB Liability/(Asset)
The City’s net OPEB liability/(asset) for the Plan was measured as the total OPEB liability, less the OPEB plan’s
fiduciary net position. The net OPEB liability/(asset) of the Plan was measured as of June 30, 2020, using an
annual actuarial valuation as of June 30, 2019. A summary of principal assumptions and methods used to
determine the net OPEB liability is shown below.
Actuarial Assumptions
The total OPEB liability in the June 30, 2020 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions
Discount Rate 7.31%
Inflation 0.75%
Payroll Growth 2.75%
Investment Rate of Return 5.85%
Mortality (1)
Healthcare Trend Rates 6.0% Pre-Medicare and 5.50% Medicare
(1) Derived using CalPERS Membership Data for all Funds
Mortality rates were based on the CalPERS 1997-2011 Experience Study, which assumed future mortality
improvements using Society of Actuaries (SOA) Scale BB. The Experience Study report can be obtained on the
CalPERS website under Forms and Publications.
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period.
Discount Rate
The discount rate used to measure the total OPEB liability/(asset) was 7.31 percent for the Plan. The projection
of cash flows used to determine the discount rate assumed that employee contributions will be made at the
current contribution rate and that the City’s contributions will be made at rates equal to the difference between
actuarially determined contributions rates and the employee rate. Based on those assumptions, the Plan’s
fiduciary net position was projected to be available to make all projected future benefit payments of current
active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total OPEB liability/(asset).
51
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
The long-term expected rate of return on the Plan investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. The target asset allocation and most recent
best estimates of arithmetic real rates of return for each major asset class are summarized in the following
table:
Asset Class Target Allocation
Global Equity 59%
Fixed Income 25%
TIPS 5%
Commodeties 3%
REITs 8%
100%
3.50%
5.50%
Real Rate of Return
Long-Term Expected
6.80%
3.10%
2.25%
Changes in Net OPEB Liability/(Asset)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 3,738,265$ 3,939,031$ (200,766)$
Changes in the year
Service cost 119,667 - 119,667
Interest on the total OPEB liability 267,702 - 267,702
Differences between expected and actual experience 27,372 - 27,372
Employer - contribution - 327,916 (327,916)
Employer - implicit subsidy - 63,699 (63,699)
Net investment income - 139,131 (139,131)
Benefit payments, including refunds of employee contributions (327,916) (327,916) -
Implicit rate subsidy fulfilled (63,699) (63,699) -
Administrative expenses - (1,924) 1,924
Other - (2,334) 2,334
Net changes 23,126 134,873 (111,747)
Balance at June 30, 2021 3,761,391$ 4,073,904$ (312,513)$
Obligations for the net OPEB liability/(asset) are typically liquidated from the General Fund.
52
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Sensitivity of the Net OPEB Liability/(asset) to Changes in the Discount Rate
The following presents the net OPEB liability/(asset) of the City, as well as what the City’s net OPEB
liability/(asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.31
percent) or 1-percentage-point higher (8.31 percent) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(6.31%)(7.31%)(8.31%)
Net OPEB Liability/(Asset)(7,668)$ (312,513)$ (581,188)$
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the net OPEB liability/(asset) of the City, as well as what the City's net OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.5 percent
decreasing to 4.5 percent) or 1-percentage-point higher (5.5 percent decreasing to 6.5 percent) than the current
healthcare cost trend rates:
1% Decrease 1% Increase
(5.50% Decreasing Trend Rate (5.50% Decreasing
to 4.50%)5.50%to 6.50%)
Net OPEB Liability/(Asset)(663,227)$ (312,513)$ 103,100$
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan's fiduciary net position is available in the separately issued CalPERS
financial reports.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2021, the City recognized OPEB expense of $58,029. At June 30, 2021, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date 203,149$ -$
Changes in assumptions - 108,269
Differences between actual and expected experience 27,399 440,163
Net difference between projected and actual earnings on
plan investments 85,726 -
316,274$ 548,432$
53
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
$203,149 reported as deferred outflows of resources related to contributions subsequent to the measurement
date will be recognized as a reduction/(increase) of the net OPEB liability/(asset) in the year ended June 30,
2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense as follows:
Fiscal Year Ended June 30,
2022 (93,765)$
2023 (82,998)
2024 (76,218)
2025 (79,027)
2026 (97,415)
Remaining (5,884)
Total (435,307)$
Note 12 - Deferred Compensation Plan
The City provides 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, for 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 $19,500 under 50 years old and $26,000 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 $76,500. The City
contributes $50 per pay period for employees and $250 per pay period for executive management 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 to full-time and part-time employees during FY 20-21 for
both plans was $138,744.
Distributions are made upon the occurrence of the participant's termination, retirement, death or unforeseen
emergency, and in a manner in accordance with the election made by the participant.
Remainder of page intentionally left blank.
54
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Note 13 - Contingencies
Various claims and suits have been filed against the City in the normal course of business. Although the outcome
of these matters is not presently determinable, in the opinion of legal counsel, the resolution of these matters is
not expected to have a material adverse effect on the financial condition of the City.
Note 14 - Fund Balances for Governmental Funds
The details of the fund balances as of June 30, 2021 are presented below:
Housing Non-major Total
General Library Fire Tax Authority Governmental Governmental
Fund Fund Fund Fund Funds Funds
Nonspendable
Prepaid items 79,850$ 2,934$ -$ -$ -$ 82,784$
Loans receivable 5,604,662 - - - - 5,604,662
Total nonspendable 5,684,512 2,934 - - - 5,687,446
Restricted
Library operations - 3,902,082 - - - 3,902,082
Fire tax/public safety operations - -72,565 - - 72,565
Housing authority loan programs - -- 1,121,509 - 1,121,509
Housing authority operations - -- 13,759,682 - 13,759,682
Other purposes - -- - 2,913,328 2,913,328
Public works - -- - 535,209 535,209
Culture and recreation - -- - 3,216,238 3,216,238
Capital projects - -- - 6,897,560 6,897,560
Total restricted - 3,902,082 72,565 14,881,191 13,562,335 32,418,173
Committed
Prudent reserve 21,000,739 - - - - 21,000,739
Disaster recovery 4,610,939 - - - - 4,610,939
Capital projects 6,010,825 - - - - 6,010,825
Economic development 5,881,396 - - - - 5,881,396
Public library 9,821,426 - - - - 9,821,426
Public safety reserve 10,000,000 - - - - 10,000,000
Total committed 57,325,325 - - - - 57,325,325
Unassigned 7,785,443 - - - - 7,785,443
-
Total fund balance 70,795,280$ 3,905,016$ 72,565$ 14,881,191$ 13,562,335$ 103,216,387$
Special Revenue
55
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
Fund Balance Policy
The City Council adopted a resolution committing the following fund balance in May 2013, March 2015, May
2017, and March 2019.
• Prudent Reserve –$21 million set aside for future revenue shortfalls of 9 percent or more from the prior
year total General Fund revenues.
• Disaster Recovery –$5 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 –$6,010,825 for land, equipment replacement, information technology equipment and
software, facility and infrastructure renovation, and upgrade and acquisitions.
• Economic Development–$6 million to be used to conti nue economic development efforts of the former
redevelopment agency.
• Public Library – Funds used to supplement the operating and capital costs of the Library Fund. The
remaining amount of this commitment at June 30, 2021 is $10 million.
• Public Safety Reserve –$10 million for police, fire and medical services, operations, equipment and capital
needs.
Note 15 - Deficit Fund Balance and Net Position
The Redevelopment Successor Agency Private-purpose Trust Fund reported a deficit fund balance of
$69,049,542 at June 30, 2021. This was caused by the dissolution of the Redevelopment Agency. See Note 16 for
additional information.
Note 16 - Successor Agency Trust for Assets of Former Redevelopment Agency
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.
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.
56
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
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 (ROPS) as an enforceabl e 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).
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, 2015 when the remaining balance was $9,666,379. The loans were approved on the ROPS covering the
period ending June 30, 2016. Loan repayments are 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. One of the
properties was transferred to the City of Rancho Mirage for governmental purpose in February 2015. The other
property was held for resale and sold in the current year. Proceeds from the sale of land were remitted to the
County of Riverside.
On November 23, 2015, the State Department of Finance approved a refunding plan and bond issuance. On
December 9, 2015, the Successor Agency sold $39,180,000 in Merged Redevelopment Project Tax Allocation
Refunding Bonds for the Northside and Whitewater Su b Areas to refund and redeem $42,770,000 of the
Agency’s outstanding Whitewater and Northside Project Area Series 2006 and 2003 A-E bonds.
On September 20, 2017, the State Department of Finance approved a refunding plan and bond issuance. On
October 5, 2017, the Successor Agency sold $14,100,000 in Merged Redevelopment Project Tax Allocation
Refunding Bonds for the Northside Sub Area to refund and redeem $17,090,000 of the Agency’s outstanding
Northside Project Area Series 2008A bonds.
Note 17 - Tax Abatements – Economic Development Incentives
GASB Statement No. 77, Tax Abatement Disclosures defines tax abatements as resulting from an agreement
between a government and an individual or entity in which the government promises to forgo tax revenues and
the individual or entity promises to subsequently take a specific action that contributes to economic
development or otherwise benefits the government or its citizens. According to the GASB 77, the substance of
these agreements meet the definition of “tax abatements” as the revenues received were not available for
general municipal services purposes, but rather used to effectively reduce the net tax liability of certain
taxpayers per the conditions of an agreement. The taxes paid to the City are included in the revenue reported in
these financial statements and the payments made to the businesses based upon the taxes paid are also
included as expenditures in these financial statements.
57
City of Rancho Mirage, California
Notes to Financial Statements
June 30, 2021
The City does not offer an economic development incentive program. Under two rare circumstances the City has
entered into two agreements, one for sales tax and one for transient occupancy tax (TOT or Bed Tax). The terms
of the City’s one sales tax abatement agreement were fulfilled in August 2020. These limited terms agreements
provide for a sharing of the taxes (percentage rebates) above certain amounts with a maximum rebate or a date
expiration, whichever comes first. The City generally expects to receive increased revenue as a result of these
agreements. These incentive agreements require approval by the City Council.
The City has one transient occupancy tax (TOT or Bed Tax) abatement agreement with the Ritz Carlton Rancho
Mirage Resort. Under the agreement, the City rebates 50% of the TOT after keeping the first $250,000 in a
calendar year. The rebates are capped at $10 million or end on December 31, 2028, whichever comes first.
Starting March 30, 2029 all TOT rebates shall be repaid to the City with a minimum annual rebate repayment of
$1 million, and said minimum annual rebate repayment shall be increased by $100,000 for each ensuing
calendar year thereafter until the full amount of all rebates actually paid by the City have been repaid to the
City. For the fiscal year ended June 30, 2021, under this agreement the City had abatements of TOT totaling
$664,789. For the fiscal year ended June 30, 2021, under this agreement the City had a cumulative total for all
TOT abatements under this agreement totaled $5,604,662, which is presented as a long-term receivable in these
financial statements due to the repayment provision (see Loan Receivable Note #3 for additional information).
The agreement has specific criteria that would allow for the eligibility of an additional $10 million in TOT
rebates. However, the developer has not met these eligibility requirements and therefore is not eligible.
Note 18 - Adoption of New Accounting Standard
As of July 1, 2020, the City adopted GASB Statement No. 84, Fiduciary Activities. As a result, the City restated the
fiduciary net position as of June 30, 2020 to properly reflect beginning equity and the change in the accounting
related to the implementation. The restatement is summarized as follows:
2020 Previously Presented Restatements 2020 Restated
Cash and investments 6,650,648$ (2,567,754)$ 4,082,894$
Due from other governments 45,188 (200) 44,988
Accounts payable (835,979) 823,177 (12,802)
Deposits payable (2,787,640) 1,744,777 (1,042,863)
-$
Fiduciary Funds Financial Statements
Agency Funds/Custodial Funds
REQUIRED SUPPLEMENTARY INFORMATION
58 City of Rancho Mirage, California Schedule of the City's Proportionate Share of the Net Pension Liability Last Ten Fiscal Years* Year Ended June 30, 2021 2021202020192018201720162015Proportion of the net pension liability0.00225%-0.00565%-0.01642%0.04599%0.03669%0.00071%0.12630%Proportionate share of the net pension liability(244,588)$ (578,798)$ (1,582,004)$ 4,561,269$ 3,174,837$ 48,864$ 7,844,756$ Covered payroll6,785,205$ 7,067,601$ 6,320,402$ 6,562,206$ 6,439,131$ 6,441,687$ 6,388,300$ Proportionate share of the net pension liability as a percentage of covered payroll-3.60%-8.19%-25.03%69.51%49.31%0.76%122.80%Plan fiduciary net position as a percentage of the total pension liability75.10%75.26%75.26%73.31%74.06%78.40%79.82%Measurement dateJune 30, 2020June 30, 2019June 30, 2018June 30, 2017June 30, 2016June 30, 2015June 30, 2014* GASB Statement No. 68 requires ten years of information to be presented in this table. However, until ten years of data is available, the City will present information only for those years for which information is available.Change of AssumptionsThe discount rate changed from 7.65% used for the June 30, 2016 measurement date to 7.15% used for the June 30, 2017measurement date.
59 City of Rancho Mirage, California Schedule of Plan Contributions Last Ten Fiscal Years* Year Ended June 30, 2021 2021202020192018201720162015Actuarially determined contributions - Miscellaneous601,185$ 589,107$ 566,522$ 547,736$ 586,148$ 602,690$ 988,866$ Contributions in relation to the actuarially determined contribution(601,185) (589,107) (566,522) (5,976,949) (586,148) (602,690) (10,693,720) Contribution deficiency (excess)-$ -$ -$ (5,429,213)$ -$ -$ (9,704,854)$ Covered Payroll6,746,681$ 6,785,205$ 7,067,601$ 6,320,402$ 6,562,206$ 6,439,131$ 6,441,687$ Contributions as a percentage of covered payroll8.91%8.68%8.02%94.57%8.93%9.36%166.01%* GASB Statement No. 68 requires ten years of information to be presented in this table. However, until ten years of data is available, the City will present information only for those years for which information is available.
60
City of Rancho Mirage, California
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios
Last Ten Fiscal Years*
Year Ended June 30, 2021
2021 2020 2019 2018
Total OPEB Liability
Service cost 119,667$ 192,622$ 201,870$ 201,870$
Interest on the total OPEB liability 267,702 315,790 286,895 277,513
Differences between actual and
expected experience 27,372 (612,777) 7,525 -
Changes in assumptions - (106,240) (61,921) -
Benefit payments, including refunds of
employee contributions (327,916) (268,007) (261,257) (207,716)
Implicit rate subsidy fulfilled (63,699) (124,536) (113,004) (105,611)
Other - (5,881) - -
Net change in total OPEB liability 23,126 (609,029) 60,108 166,056
Total OPEB liability - beginning 3,738,265 4,347,294 4,287,186 4,121,130
Total OPEB liability - ending (a)3,761,391$ 3,738,265$ 4,347,294$ 4,287,186$
Plan Fiduciary Net Position
Contributions - employer 327,916$ 268,007$ 261,257$ 1,124,553$
Employer implicit subsidy 63,699 124,536 113,004
Net investment income 139,131 229,381 273,732 254,764
Benefit payments (327,916) (268,007) (261,257) (313,327)
Implicit subsidy credit (63,699) (124,536) (113,004) -
Administrative expenses (1,924) (1,827) (1,790) (1,248)
Other (2,334) (5,881) - -
Net change in plan fiduciary net position 134,873 221,673 271,942 1,064,742
Plan fiduciary net position - beginning 3,939,031 3,717,358 3,445,416 2,380,674
Plan fiduciary net position - ending (b)4,073,904 3,939,031 3,717,358 3,445,416
Net OPEB liability/(asset) - ending (a)-(b)(312,513)$ (200,766)$ 629,936$ 841,770$
Plan fiduciary net position as a percentage
of the total OPEB liability/(asset)108.31%105.37%85.51%80.37%
Covered-employee payroll 6,156,402$ 7,067,601$ 5,327,417$ 6,057,551$
Net OPEB liability/(asset) as percentage of
covered-employee payroll -5.08%-2.84%11.82%13.90%
* GASB Statement No. 75 requires ten years of information to be presented in this table. However, until ten
years of data is available, the City will present information only for those years for which information
is available.
61
City of Rancho Mirage, California
Schedule of OPEB Contributions
Last Ten Fiscal Years*
Year Ended June 30, 2021
2021 2020 2019 2018
Actuarially determined contribution 128,415$ 259,487$ 281,363$ 329,866$
Contributions in relation to the actuarially
determined contributions 203,149 391,615 392,543 374,261
Contribution deficiency (excess)(74,734)$ (132,128)$ (111,180)$ (44,395)$
Covered-employee payroll 6,518,470$ 6,156,402$ 7,067,601$ 5,327,417$
Contributions as a percentage of
covered-employee payroll 3%6%6%7%
* GASB Statement No. 75 requires ten years of information to be presented in this table. However, until ten
years of data is available, the City will present information only for those years for which information
is available.
Notes to Schedule
Valuation date Actuarially determined contribution rates are calculated
as of June 30 one year prior to the end of the fiscal year
in which contributions are reported.
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percent of payroll
Amortization period 20 years
Asset valuation method Market value
Inflation 0.75%
Healthcare cost trend rates 6.00%, trending down to 3.94%
Investment rate of return 5.85%
Retirement age 50-52
Mortality Based on CalPERS Experience Study
See Note to Required Supplementary Information 62
City of Rancho Mirage, California
Budgetary Comparison Schedule - General Fund
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Revenues
Taxes
Property taxes 3,681,000$ 3,681,000$ 4,044,943$ 363,943$
Sales taxes 5,494,883 5,494,883 5,906,536 411,653
Franchise taxes 1,310,000 1,310,000 1,342,103 32,103
Transient occupancy taxes 7,250,000 5,525,000 6,932,720 1,407,720
Real property transfer taxes 350,000 400,000 765,445 365,445
Total taxes 18,085,883 16,410,883 18,991,747 2,580,864
Intergovernmental
Reimbursement from Local Government 312,900 312,900 332,011 19,111
County COPS Program 100,000 100,000 156,727 56,727
Other 3,171,568 3,171,568 3,436,034 264,466
Total intergovernmental 3,584,468 3,584,468 3,924,772 340,304
Licenses and permits
Business licenses 232,000 232,000 218,964 (13,036)
Plan check fees 200,000 200,000 312,233 112,233
Public works inspections and fees 210,000 260,000 221,247 (38,753)
Short-term rental certificates 115,000 115,000 178,633 63,633
Other 8,000 8,000 15,429 7,429
Total licenses and permits 765,000 815,000 946,506 131,506
Charges for services
Planning fees 145,000 295,000 439,666 144,666
PEG fees 103,000 103,000 104,873 1,873
Construction permits 740,000 1,360,000 2,087,085 727,085
Other 5,000 12,000 119,559 107,559
Total charges for services 993,000 1,770,000 2,751,183 981,183
Developer fees 80,000 80,000 111,267 31,267
Fines and forfeitures 55,000 105,000 125,536 20,536
Interest income 827,400 827,400 1,167,081 339,681
Net change in investment fair value - - (1,328,235) (1,328,235)
Miscellaneous 475,000 647,000 730,494 83,494
Total revenues 24,865,751 24,239,751 27,420,351 3,180,600
(Continued)
Budgeted Amounts
See Note to Required Supplementary Information 63
City of Rancho Mirage, California
Budgetary Comparison Schedule - General Fund (Continued)
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Expenditures
Current
General government
City council
Personnel 262,710$ 262,710$ 254,991$ 7,719$
Operations and maintenance 1,000 1,594 1,593 1
Total city council 263,710 264,304 256,584 7,720
City clerk
Personnel 234,054 234,902 234,902 -
Operations and maintenance 12,750 43,048 36,352 6,696
Total city clerk 246,804 277,950 271,254 6,696
City manager
Personnel 555,043 577,044 577,044 -
Operations and maintenance 21,400 21,400 1,371 20,029
Total city manager 576,443 598,444 578,415 20,029
City attorney
Operations and maintenance 525,000 864,014 864,014 -
Total city attorney 525,000 864,014 864,014 -
Administration
Personnel 723,628 723,628 585,854 137,774
Operations and maintenance 41,350 101,726 101,725 1
Total Administration 764,978 825,354 687,579 137,775
Finance
Personnel 580,248 591,787 591,786 1
Operations and maintenance 179,300 179,300 153,371 25,929
Total Finance 759,548 771,087 745,157 25,930
Information services
Personnel 713,628 713,628 660,680 52,948
Operations and maintenance 490,500 570,500 431,996 138,504
Capital 6,500 6,500 4,655 1,845
Total information services 1,210,628 1,290,628 1,097,331 193,297
Public information & com. Relations
Operations and maintenance 129,000 134,189 134,189 -
(Continued)
Budgeted Amounts
See Note to Required Supplementary Information 64
City of Rancho Mirage, California
Budgetary Comparison Schedule - General Fund (Continued)
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
General government
Personnel 672,250$ 1,075,584$ 1,075,583$ 1$
Operations and maintenance 866,514 981,606 536,356 445,250
Ritz Rebate 800,000 800,000 664,789 135,211
Capital 2,500 2,500 - 2,500
Total general government 2,341,264 2,859,690 2,276,728 582,962
Special programs
Operations and maintenance 324,000 8,694,402 8,555,571 138,831
Special Assistance Funds 30,000 30,000 - 30,000
Total special programs 354,000 8,724,402 8,555,571 168,831
Planning
Personnel 942,688 942,688 779,841 162,847
Operations and maintenance 259,000 339,300 260,901 78,399
Total planning 1,201,688 1,281,988 1,040,742 241,246
Building and safety
Personnel 481,487 481,487 384,938 96,549
Operations and maintenance 246,000 291,000 196,127 94,873
Total building and safety 727,487 772,487 581,065 191,422
Mandated programs
Operations and maintenance 18,900 18,900 16,865 2,035
Regional plan and implementation
Operations and maintenance 139,997 280,101 280,100 1
Tourism and marketing
Personnel 561,554 561,554 572,504 (10,950)
Operations and maintenance 816,000 1,073,500 984,083 89,417
Total tourism and marketing 1,377,554 1,635,054 1,556,587 78,467
Economic development
Personnel 115,886 115,886 81,649 34,237
Operations and maintenance 151,200 151,200 143,721 7,479
Total economic development 267,086 267,086 225,370 41,716
Total general government 10,904,087 20,865,678 19,167,551 1,698,127
Public safety
Code compliance
Personnel 406,655 460,041 460,040 1
Operations and maintenance 85,000 120,000 106,423 13,577
Total code compliance 491,655 580,041 566,463 13,578
(Continued)
Budgeted Amounts
See Note to Required Supplementary Information 65
City of Rancho Mirage, California
Budgetary Comparison Schedule - General Fund (Continued)
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Emergency services
Operations and maintenance 39,300$ 39,300$ 22,141$ 17,159$
Total emergency services 39,300 39,300 22,141 17,159
Police services
Operations and maintenance 10,096,500 10,096,500 9,607,689 488,811
Capital - 283,837 283,026 811
Total police services 10,096,500 10,380,337 9,890,715 489,622
Citizens Option for Public Safety (COPS)
Operations and maintenance 101,000 155,841 155,840 1
ACBCI Tourism Fee
Operations and maintenance 163,500 215,009 215,008 1
Reimbursement for Public Safety
Operations and maintenance 30,000 54,987 54,988 (1)
Total public safety 10,921,955 11,425,515 10,905,155 520,360
Public works
Facilities & fleet maintenance
Personnel 723,373 723,373 677,074 46,299
Operations and maintenance 616,850 696,668 696,667 1
Capital 6,500 8,059 8,059 -
Total facilities & fleet maintenance 1,346,723 1,428,100 1,381,800 46,300
Street maintenance
Personnel 697,121 697,121 660,623 36,498
Operations and maintenance 404,000 410,116 410,115 1
Capital - 35,025 35,023 2
Total street maintenance 1,101,121 1,142,262 1,105,761 36,501
Engineering
Personnel 1,162,695 1,162,695 1,038,714 123,981
Operations and maintenance 127,475 289,743 150,201 139,542
Total engineering 1,290,170 1,452,438 1,188,915 263,523
Total public works 3,738,014 4,022,800 3,676,476 346,324
(Continued)
Budgeted Amounts
See Note to Required Supplementary Information 66
City of Rancho Mirage, California
Budgetary Comparison Schedule - General Fund (Continued)
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Capital projects
Capital improvements financed from
fund balance and license tax
General Fund Capital Projects 4,591,568$ 4,591,568$ 3,596,942$ 994,626$
License Tax Fund Capital Projects 433,071 433,071 - 433,071
PEG Channel Capital Projects 230,000 230,000 41,883 188,117
5,254,639 5,254,639 3,638,825 1,615,814
Total expenditures 30,818,695 41,568,632 37,388,007 4,180,625
Excess (Deficiency) of Revenues
over (under) Expenditures (5,952,944) (17,328,881) (9,967,656) (7,361,225)
Other Financing Sources
Transfers in 727,106 727,106 696,856 (30,250)
Transfers out (3,957,513) (4,194,690) (1,607,839) 2,586,851
Total other financing sources (3,230,407) (3,467,584) (910,983) 2,556,601
Net Change in Fund Balance (9,183,351) (20,796,465) (10,878,639) 9,917,826
Fund Balance, Beginning of Year 76,089,995 76,089,995 76,089,995 -
Fund Balance, End of Year 66,906,644$ 55,293,530$ 65,211,356$ 9,917,826$
Budgeted Amounts
See Note to Required Supplementary Information 67
City of Rancho Mirage, California
Budgetary Comparison Schedule - General Fund (Continued)
Year Ended June 30, 2021
The following schedule shows the Budgetary Comparison Statement reconciliation between the budgetary basis
and GAAP basis for the General Fund:
General Fund
Revenues and Other Financing Sources
Revenues from the budgetary comparison schedule 27,420,351$
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.5,517,146
Total Revenues from the Financial Statements 32,937,497$
Transfers In from the Budgetary Comparison Schedules 696,856$
Elimination of transfers within general fund
in accordance with GASB 54 consolidation 85,548
Total Transfers in from the Financial Statements 782,404$
Expenditures and Other Financing Uses
Expenditures and other financing uses from
the budgetary comparison schedules 38,995,846$
Reclassification of special revenue funds
to general fund in accordance with GASB 54 18,770
Total Expenditures and Other Financing Uses from the Financial Statements 39,014,616$
See Note to Required Supplementary Information 68
City of Rancho Mirage, California
Budgetary Comparison Schedule - Library Special Revenue Fund
Year Ended June 30, 2021
Original Final Actual Variance
Revenues
Taxes 902,000$ 902,000$ 996,076$ 94,076$
Charges and services 12,100 12,100 5,200 (6,900)
Fines and forfeitures 6,500 6,500 747 (5,753)
Interest income 15,000 15,000 37,881 22,881
Change in investment fair value - - 11,951 11,951
Miscellaneous 7,250 7,250 3,357 (3,893)
Total revenues 1,234,350 1,234,350 1,371,416 137,066
Expenditures
Current
Cultural and recreation 2,887,514 2,887,514 2,839,187 48,327
Capital projects 320,000 320,000 223,359 96,641
Debt Service
Principal 21,643 21,643 21,643 -
Interest 1,277 1,277 1,277 -
Total expenditures 3,230,434 3,230,434 3,085,466 144,968
Excess (Deficiency) of Revenues
over (under) Expenditures (1,996,084) (1,996,084) (1,714,050) 282,034
Other Financing Sources (Uses)
Transfers in 1,608,243 1,608,243 2,283,567 675,324
Transfers out (65,119) (65,119) (65,119) -
Total other financing
sources (uses)1,543,124 1,543,124 2,218,448 675,324
Net Changes in Fund Balance (452,960) (452,960) 504,398 957,358
Fund Balance, Beginning of Year 3,407,863 3,407,863 3,407,863 -
Fund Balance, End of Year 2,954,903$ 2,954,903$ 3,912,261$ 957,358$
Budgeted Amounts
See Note to Required Supplementary Information 69
City of Rancho Mirage, California
Budgetary Comparison Schedule - Library Special Revenue Fund (Continued)
Year Ended June 30, 2021
Library Special
Revenue Fund
Revenues and Other Financing Sources
Revenues from the Budgetary Comparison Schedule 1,371,416$
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 54.2,175,324
Total Revenues from the Financial Statements 3,546,740$
Transfers In from the Budgetary Comparison Schedules 2,283,567$
Elimination of Transfers within Library Fund
in accordance with GASB 54 consolidation (2,175,324)
Total Transfers in from the Financial Statements 108,243$
Expenditures and Other Financing Uses
Expenditures and Other Financing Uses from
the Budgetary Comparison Schedule 3,150,585$
Total Expenditures and Other Financing Uses from the Financial Statements 3,150,585$
See Note to Required Supplementary Information 70
City of Rancho Mirage, California
Budgetary Comparison Schedule - Fire Tax Special Revenue Fund
Year Ended June 30, 2021
Original Final Actual Variance
Revenues
Intergovernmental 25,000$ 25,000$ -$ (25,000)$
Charges for services 1,034,890 1,034,890 1,035,412 522
Interest income 2,000 2,000 8,587 6,587
Change in investment fair value - - (1,038) (1,038)
Miscellaneous - - 35,996 35,996
Total revenues 1,061,890 1,061,890 1,078,957 17,067
Expenditures
Current
Public safety 8,304,050 8,304,050 7,070,517 1,233,533
Capital projects 1,062,000 1,062,000 436,026 625,974
Total expenditures 9,366,050 9,366,050 7,506,543 1,859,507
Excess (Deficiency) of Revenues
over (under) Expenditures (8,304,160) (8,304,160) (6,427,586) 1,876,574
Other Financing Sources (Uses)
Transfers in 8,304,160 8,304,160 6,427,612 (1,876,548)
Total other financing sources (uses)8,304,160 8,304,160 6,427,612 (1,876,548)
Net Changes in Fund Balance - - 26 26
Fund Balance, Beginning of Year 72,539 72,539 72,539 -
Fund Balance, End of Year 72,539$ 72,539$ 72,565$ 26$
Budgeted Amounts
See Note to Required Supplementary Information 71
City of Rancho Mirage, California
Budgetary Comparison Schedule - Fire Tax Special Revenue Fund
Year Ended June 30, 2021
Fire Tax Fund
Revenues and Other Financing Sources
Revenues from the Budgetary Comparison Schedule 1,078,957$
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 54.4,588,118
Total Revenues from the Financial Statements 5,667,075$
Transfers In from the Budgetary Comparison Schedules 6,427,612
Elimination of Transfers within Fire Tax Fund
in accordance with GASB 54 consolidation (4,588,118)
Total Transfers in from the Financial Statements 1,839,494$
See Note to Required Supplementary Information 72
City of Rancho Mirage, California
Budgetary Comparison Schedule - Housing Authority Special Revenue Fund
Year Ended June 30, 2021
Original Final Actual Variance
Revenues
Intergovernmental 52,200$ 52,200$ -$ (52,200)$
Licenses and permits 4,500 4,500 13,625 9,125
Charges for services 1,500,000 1,500,000 1,593,387 93,387
Interest income 130,000 130,000 244,012 114,012
Change in investment fair value - - (152,245) (152,245)
Miscellaneous 150 150 1,998,321 1,998,171
Total revenues 1,686,850 1,686,850 3,697,100 2,010,250
Expenditures:
Current
General government 1,667,609 1,753,971 2,168,871 (414,900)
Capital projects 493,000 493,000 - 493,000
Total expenditures 2,160,609 2,246,971 2,168,871 78,100
Excess (Deficiency) of Revenues
over (under) Expenditures (473,759) (560,121) 1,528,229 2,088,350
Other Financing Sources (Uses)
Transfers in 199,650 199,650 306,866 107,216
Transfers out (1,023,133) (1,023,133) (715,240) 307,893
Total other financing sources (uses)(823,483) (823,483) (408,374) 415,109
Net Changes in Fund Balance (1,297,242) (1,383,604) 1,119,855 2,503,459
Fund Balance, Beginning of Year 13,761,336 13,761,336 13,761,336 -
Fund Balance, End of Year 12,464,094$ 12,377,732$ 14,881,191$ 2,503,459$
Budgeted Amounts
73
City of Rancho Mirage, California
Note to Required Supplementary Information
June 30, 2021
Note 1 - Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the basic financial statements:
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.
Public hearings are conducted to obtain taxpayer comments.
The budget is subsequently adopted through passage of a resolution.
All appropriated amounts are as originally adopted or as amended by the City Council and lapse at
year end.
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.
The legal level for which expenditures are not to exceed appropriations is at the fund level for all
funds except for 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.
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.
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 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.
1.
2.
3.
4.
5.
6.
7.
8.
9.
SUPPLEMENTARY INFORMATION
74
City of Rancho Mirage, California
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Special Capital Total Nonmajor
Revenue Projects Governmental
Funds Funds Funds
Assets
Cash and investments 8,916,617$ 4,499,860$ 13,416,477$
Interest receivable 22,217 11,231 33,448
Accounts receivable 26,613 - 26,613
Due from other governments 428,610 - 428,610
Total assets 9,394,057$ 4,511,091$ 13,905,148$
Liabilities, Deferred Inflows of Resources
and Fund Balance
Liabilities
Accounts payable 122,268$ 199,040$ 321,308$
Accrued salaries and benefits 2,137 - 2,137
Total liabilities 124,405 199,040 323,445
Deferred Inflow of Resources
Unavailable revenue 26,613 - 26,613
Fund Balance
Restricted 9,243,039 4,312,051 13,555,090
Total liabilities, deferred inflows
of resources and fund balance 9,394,057$ 4,511,091$ 13,905,148$
75
City of Rancho Mirage, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended June 30, 2021
Special Capital Total Nonmajor
Revenue Projects Governmental
Funds Funds Funds
Revenues
Taxes 1,221,611$ -$ 1,221,611$
Intergovernmental 798,981 - 798,981
Charges for services 176,104 - 176,104
Special assessments 1,545,127 - 1,545,127
Developer fees - 1,001,065 1,001,065
Interest income 278,444 71,195 349,639
Net change in investment fair value (287,182) (46,232) (333,414)
Miscellaneous 237,429 - 237,429
Total revenues 3,970,514 1,026,028 4,996,542
Expenditures
Current
General government 204,410 - 204,410
Public works 791,305 - 791,305
Cultural and recreation 625,056 - 625,056
Capital outlay 2,870,089 376,485 3,246,574
Total expenditures 4,490,860 376,485 4,867,345
Excess (Deficiency) of Revenues
over (under) Expenditures (520,346) 649,543 129,197
Other Financing Sources (Uses)
Transfers in 13,725 - 13,725
Transfers out (140,660) - (140,660)
Total other financing sources (uses)(126,935) - (126,935)
Net Changes in Fund Balances (647,281) 649,543 2,262
Fund Balances, Beginning of Year 9,890,320 3,662,508 13,552,828
Fund Balances, End of Year 9,243,039$ 4,312,051$ 13,555,090$
76
City of Rancho Mirage, California
Nonmajor Special Revenue Funds
June 30, 2021
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 streets.
The AB 939 Recycling Programs Fund – is used to account for the revenues and expenditures restricted for the
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 mobile home 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.
77 City of Rancho Mirage, California Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2021 LandscapeAB 939Total Nonmajorand LightingParklandLibraryRecycling TransportationAir PollutionRentStorm WaterSpecial RevenueDistrictsFundFoundationGas TaxProgramsMeasure AReductionControlQualityFundsAssetsCash and investments531,501$ 1,160,289$ 2,054,241$ 1,148,289$ 2,884,367$ 1,066,629$ 14,794$ 26,404$ 30,103$ 8,916,617$ Interest receivable1,172 2,614 5,417 2,765 7,419 2,609 35 67 119 22,217 Accounts receivable26,613 - - - - - - - - 26,613 Due from other governments17,679 20,150 - 37,840 - 352,941 - - - 428,610 Total assets576,965$ 1,183,053$ 2,059,658$ 1,188,894$ 2,891,786$ 1,422,179$ 14,829$ 26,471$ 30,222$ 9,394,057$ Liabilities, Deferred Inflows of Resources and Fund BalanceLiabilitiesAccounts payable41,352$ 31,322$ 250$ -$ 19,759$ 25,572$ -$ -$ 4,013$ 122,268$ Accrued salaries and benefits- 2,137 - - - - - - - 2,137 Total liabilities41,352 33,459 250 - 19,759 25,572 - - 4,013 124,405 Deferred Inflow of ResourcesUnavailable revenue26,613 - - - - - - - - 26,613 Fund BalanceRestricted509,000 1,149,594 2,059,408 1,188,894 2,872,027 1,396,607 14,829 26,471 26,209 9,243,039 Total liabilities, deferred inflows of resources and fund balance576,965$ 1,183,053$ 2,059,658$ 1,188,894$ 2,891,786$ 1,422,179$ 14,829$ 26,471$ 30,222$ 9,394,057$
78 City of Rancho Mirage, California Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds Year Ended June 30, 2021 LandscapeAB 939Total Nonmajorand LightingParklandLibraryRecycling TransportationAir PollutionRentStorm WaterSpecial RevenueDistrictsFundFoundationGas TaxProgramsMeasure AReductionControlQualityFundsRevenuesTaxes-$ -$ -$ -$ -$ 1,221,611$ -$ -$ -$ 1,221,611$ Intergovernmental- - - 774,582 - - 24,399 - - 798,981 Charges for services- - - - 176,104 - - - - 176,104 Special assessments558,413 709,221 - - - - - - 277,493 1,545,127 Interest income7,424 17,314 156,151 29,569 49,623 16,319 234 466 1,344 278,444 Net change in investmentfair value(6,513) (14,805) (119,314) (42,968) (51,732) (51,639) (505) (524) 818 (287,182) Miscellaneous2,767 100 234,128 - 434 - - - - 237,429 Total revenues562,091 711,830 270,965 761,183 174,429 1,186,291 24,128 (58) 279,655 3,970,514 ExpendituresCurrentGeneral government603 129,233 - 3,000 3,653 - 32,246 2,500 33,175 204,410 Public works476,774 - - 28,218 192,175 - -- 94,138 791,305 Cultural and recreation- 386,536 238,520 - - - -- - 625,056 Capital projects- 141,210 - 1,042,728 - 1,686,151 - - - 2,870,089 Total expenditures477,377 656,979 238,520 1,073,946 195,828 1,686,151 32,246 2,500 127,313 4,490,860 Excess (Deficiency) of Revenuesover (under) Expenditures84,714 54,851 32,445 (312,763) (21,399) (499,860) (8,118) (2,558) 152,342 (520,346) Other Financing Sources (Uses)Transfers in5,971 6,696 - - - - - - 1,058 13,725 Transfers out(58,689) - - - (71,013) - - - (10,958) (140,660) Total other financing sources (uses)(52,718) 6,696 - - (71,013) - - - (9,900) (126,935) Net Changes in Fund Balances31,996 61,547 32,445 (312,763) (92,412) (499,860) (8,118) (2,558) 142,442 (647,281) Fund Balances, Beginning of Year477,004 1,088,047 2,026,963 1,501,657 2,964,439 1,896,467 22,947 29,029 (116,233) 9,890,320 Fund Balances, End of Year509,000$ 1,149,594$ 2,059,408$ 1,188,894$ 2,872,027$ 1,396,607$ 14,829$ 26,471$ 26,209$ 9,243,039$
79
City of Rancho Mirage, California
Budgetary Comparison Schedule
Landscape and Lighting Districts Special Revenue Fund
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Revenues
Special assessments 569,400$ 569,400$ 558,413$ (10,987)$
Interest income 2,525 2,525 7,424 4,899
Net change in investment fair value - - (6,513) (6,513)
Miscellaneous - - 2,767 2,767
Total revenues 571,925 571,925 562,091 (9,834)
Expenditures
Current
General government - - 603 (603)
Public works 534,635 534,635 476,774 57,861
Capital Projects 15,000 15,000 - 15,000
Total expenditures 549,635 549,635 477,377 72,258
Excess (Deficiency) of Revenues
over (under) Expenditures 22,290 22,290 84,714 62,424
Other Financing Sources (Uses)
Transfers in 9,821 9,821 5,971 3,850
Transfers out (58,689) (58,689) (58,689) -
Total other financing sources (uses)(48,868) (48,868) (52,718) 3,850
Net Changes in Fund Balance (26,578) (26,578) 31,996 58,574
Fund Balance, Beginning of Year 477,004 477,004 477,004 -
Fund Balance, End of Year 450,426$ 450,426$ 509,000$ 58,574$
80
City of Rancho Mirage, California
Budgetary Comparison Schedule
Parkland Special Revenue Fund
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Revenues
Special assessments 583,680$ 583,680$ 709,221$ 125,541$
Interest income 12,600 12,600 17,314 4,714
Net change in investment fair value - - (14,805) (14,805)
Miscellaneous - - 100 100
Total revenues 596,280 596,280 711,830 115,550
Expenditure
Current
General government 141,142 141,142 129,233 11,909
Cultural and recreation 453,225 453,225 386,536 66,689
Capital projects - 62,615 141,210 (78,595)
Total expenditures 594,367 656,982 656,979 3
Excess (Deficiency) of Revenues
over (under) Expenditure 1,913 (60,702) 54,851 115,553
Other Financing Sources (Uses)
Transfers in 6,696 6,696 6,696 -
Net Changes in Fund Balance 8,609 (54,006) 61,547 115,553
Fund Balance, Beginning of Year 1,088,047 1,088,047 1,088,047 -
Fund Balance, End of Year 1,096,656$ 1,034,041$ 1,149,594$ 115,553$
81
City of Rancho Mirage, California
Budgetary Comparison Schedule
Library Foundation Special Revenue Fund
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Revenues
Interest income 20,000$ 20,000$ 156,151$ 136,151$
Net change in investment fair value - - (119,314) (119,314)
Miscellaneous 383,000 383,000 234,128 (148,872)
Total revenues 403,000 403,000 270,965 (132,035)
Expenditure
Current
Cultural and recreation 442,500 442,500 238,520 203,980
Net Changes in Fund Balance (39,500) (39,500) 32,445 71,945
Fund Balance, Beginning of Year 2,026,963 2,026,963 2,026,963 -
Fund Balance, End of Year 1,987,463$ 1,987,463$ 2,059,408$ 71,945$
82
City of Rancho Mirage, California
Budgetary Comparison Schedule
Gas Tax Special Revenue Fund
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Revenues
Intergovernmental 759,200$ 759,200$ 774,582$ 15,382$
Interest income 13,200 13,200 29,569 16,369
Net change in investment fair value - - (42,968) (42,968)
Total revenues 772,400 772,400 761,183 (11,217)
Expenditures
Current
General government 3,000 3,000 3,000 -
Public works 95,000 95,000 28,218 66,782
Capital projects 2,300,000 2,300,000 1,042,728 1,257,272
Total expenditures 2,398,000 2,398,000 1,073,946 1,324,054
Excess (Deficiency) of Revenues
over (under) Expenditures (1,625,600) (1,625,600) (312,763) 1,312,837
Net Changes in Fund Balance (1,625,600) (1,625,600) (312,763) 1,312,837
Fund Balance, Beginning of Year 1,501,657 1,501,657 1,501,657 -
Fund Balance, End of Year (123,943)$ (123,943)$ 1,188,894$ 1,312,837$
83
City of Rancho Mirage, California
Budgetary Comparison Schedule
AB 939 Recycle Programs Special Revenue Fund
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Revenues
Intergovernmental 5,000$ 5,000$ -$ (5,000)$
Charges for services 180,000 180,000 176,104 (3,896)
Interest income 30,000 30,000 49,623 19,623
Net change in investment fair value - - (51,732) (51,732)
Miscellaneous 4,000 4,000 434 (3,566)
Total revenues 219,000 219,000 174,429 (44,571)
Expenditures
Current:
General government 75,000 75,000 3,653 71,347
Public works 124,500 124,500 192,175 (67,675)
Total expenditures 199,500 199,500 195,828 3,672
Excess (Deficiency) of Revenues
over (under) Expenditures 19,500 19,500 (21,399) (40,899)
Other Financing Sources (Uses)
Transfers out (71,013) (71,013) (71,013) -
Net Changes in Fund Balance (51,513) (51,513) (92,412) (40,899)
Fund Balance, Beginning of Year 2,964,439 2,964,439 2,964,439 -
Fund Balance, End of Year 2,912,926$ 2,912,926$ 2,872,027$ (40,899)$
84
City of Rancho Mirage, California
Budgetary Comparison Schedule
Transportation Measure A Special Revenue Fund
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Revenues
Taxes 1,048,476$ 1,048,476$ 1,221,611$ 173,135$
Interest income 29,000 29,000 16,319 (12,681)
Net change in investment fair value - - (51,639) (51,639)
Total revenues 1,077,476 1,077,476 1,186,291 108,815
Expenditure
Capital projects 1,413,968 1,413,968 1,686,151 (272,183)
Net Changes in Fund Balance (336,492) (336,492) (499,860) (163,368)
Fund Balance, Beginning of Year 1,896,467 1,896,467 1,896,467 -
Fund Balance, End of Year 1,559,975$ 1,559,975$ 1,396,607$ (163,368)$
85
City of Rancho Mirage, California
Budgetary Comparison Schedule
Air Pollution Special Revenue Fund
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Revenues
Intergovernmental 23,000$ 23,000$ 24,399$ 1,399$
Interest income 100 100 234 134
Net change in investment fair value - - (505) (505)
Total revenues 23,100 23,100 24,128 1,028
Expenditure
Current
General government 17,250 32,246 32,246 -
Net Changes in Fund Balance 5,850 (9,146) (8,118) 1,028
Fund Balance, Beginning of Year 22,947 22,947 22,947 -
Fund Balance, End of Year 28,797$ 13,801$ 14,829$ 1,028$
86
City of Rancho Mirage, California
Budgetary Comparison Schedule
Rent Control Special Revenue Fund
Year Ended June 30, 2021
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Interest income - - 466 466
Net change in investment fair value - - (524) (524)
Total revenues - - (58) (58)
Expenditures
Current
General government - 2,500 2,500 -
Excess (Deficiency) of Revenues
over (under) Expenditures - (2,500) (2,558) (58)
Net Changes in Fund Balance - (2,500) (2,558) (58)
Fund Balance, Beginning of Year 29,029 29,029 29,029 -
Fund Balance, End of Year 29,029$ 26,529$ 26,471$ (58)$
87
City of Rancho Mirage, California
Budgetary Comparison Schedule
Storm Water Quality Special Revenue Fund
Year Ended June 30, 2021
Original Final
Budget Budget Actual Variance
Revenues
Special assessment 125,000$ 125,000$ 277,493$ 152,493$
Interest income 800 800 1,344 544
Net change in investment fair value - - 818 818
Total revenues 125,800 125,800 279,655 153,855
Expenditures
Current
General government 33,600 33,600 33,175 425
Public works 124,000 124,000 94,138 29,862
Total expenditures 157,600 157,600 127,313 30,287
Excess (Deficiency) of Revenues
over (under) Expenditures (31,800) (31,800) 152,342 184,142
Other Financing Sources (Uses)
Transfers in 1,058 1,058 1,058 -
Transfers out (10,958) (10,958) (10,958) -
Total other financing sources (Uses)(9,900) (9,900) (9,900) -
Net Changes in Fund Balance (41,700) (41,700) 142,442 184,142
Fund Balance, Beginning of Year (116,233) (116,233) (116,233) -
Fund Balance, End of Year (157,933)$ (157,933)$ 26,209$ 184,142$
88
City of Rancho Mirage, California
Nonmajor Capital Projects Funds
June 30, 2021
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.
89
City of Rancho Mirage, California
Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2021
Development
Fees
Assets
Cash and investments 4,499,860$
Interest receivable 11,231
Total assets 4,511,091$
Liabilities and Fund Balances
Liabilities
Accounts payable 199,040$
Fund Balance
Restricted 4,312,051$
Total liabilities and fund balances 4,511,091$
90
City of Rancho Mirage, California
Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Capital Projects Funds
Year Ended June 30, 2021
Development
Fees
Revenues
Developer fees 1,001,065$
Interest income 71,195
Change in investment fair value (46,232)
Total revenues 1,026,028
Expenditure
Capital outlay 376,485
Change in Fund Balance 649,543
Fund Balances, Beginning of Year 3,662,508
Fund Balances, End of Year 4,312,051$
91
City of Rancho Mirage, California
Budgetary Comparison Schedule - Development Fees Capital Projects Funds
Year Ended June 30, 2021
Final
Budget Actual Variance
Revenues
Developer fees 330,800$ 1,001,065$ 670,265$
Interest income 30,600 71,195 40,595
Net change in investment fair value - (46,232) (46,232)
Total revenues 361,400 1,026,028 664,628
Expenditures
Capital outlay 1,519,982 376,485 1,143,497
Total expenditures 1,519,982 376,485 1,143,497
Net Changes in Fund Balance (1,158,582) 649,543 1,808,125
Fund Balances Beginning of Year 3,662,508 3,662,508 -
Fund Balances, End of Year 2,503,926$ 4,312,051$ 1,808,125$
92
City of Rancho Mirage, California
Custodial Funds
Year Ended June 30, 2021
Custodial Funds are used to account for assets held by the City in a fiduciary capacity for individuals,
governmental entities and others.
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.
The Writer’s Festival Fund – is used to account for cash and investments held by the City on behalf of the City of
Rancho Mirage Writers Festival Foundation.
The Joslyn Center Fund – is used to account for cash and investments held by the City on behalf of the Joslyn
Center.
CFD No. 4 Del Webb Fund – is used to account for special assessment collections and debt service payments
between property owners in Del Webb Rancho Mirage and bondholders. The debt is not an obligation of the
City.
CFD No. 5 Section 31 Fund – is used to account for special assessment collections and debt service payments
between property owners in Section 31 and bondholders. The debt is not an obligation of the City.
The Children’s Discovery Museum of the Desert Fund – is used to account for cash and investments held by the
City on behalf of the Children's Discovery Museum.
93 City of Rancho Mirage, California Combining Statement of Changes in Fiduciary Net Position Custodial Funds Year Ended June 30, 2021 WritersChildren'sAssessment FestivalCFD No. 4CFD No. 5 DiscoveryDistrictsFoundationJoslyn Center Del WebbSection 31Museum of theFundsFundFundFundFundDesert FundTotalAssetsCurrent Assets:Cash and investments904,675$ 2,256,129$ 207,666$ 393,130$ -$ 483,444$ 4,245,044$ Cash and investments with fiscal agent1,165,955 - - 766,644 - - 1,932,599 Interest receivable1,460 5,605 527 628 - 1,228 9,448 Due from other governments98,998 - - 7,790 - -106,788 Total assets2,171,088 2,261,734 208,193 1,168,192 - 484,672 6,293,879 LiabilitiesAccounts payable- 71,641 - - - - 71,641 Deposits payable- -200,000 769,109 - 461,415 1,430,524 Due to bondholders79,854 - - 136,985 - -216,839 Total liabilities79,854 71,641 200,000 906,094 - 461,415 1,719,004 Net PositionRestricted for:Bondholders2,091,234 - - 262,098 - - 2,353,332 Investment pool participants- - 8,193 - - 23,257 31,450 Rancho Mirage Writers Festival- 2,190,093 - - - - 2,190,093 Total net position2,091,234$ 2,190,093$ 8,193$ 262,098$ -$ 23,257$ 4,574,875$
94 City of Rancho Mirage, California Combining Statement of Changes in Fiduciary Net Position Custodial Funds Year Ended June 30, 2021 WritersChildren'sAssessment FestivalCFD No. 4CFD No. 5 DiscoveryDistrictsFoundationJoslyn Center Del WebbSection 31Museum of theFundsFundFundFundFundDesert FundTotalAdditionsInvestment earnings7,219$ 2,566$ 7,800$ 2,556$ -$ 2,516$ 22,657$ Rancho Mirage Writers Festival- 449,332 - - - - 449,332 Special assessments1,114,091 - - 519,443 - - 1,633,534 Total additions1,121,310 451,898 7,800 521,999 - 2,516 2,105,523 DeductionsAdministrative expense36,315 - - 18,332 - - 54,647 Debt service:Principal595,000 - - 110,000 - - 705,000 Interest245,194 - - 400,972 - - 646,166 Rancho Mirage Writers Festival- 421,511 - - - - 421,511 Total deductions876,509 421,511 - 529,304 - - 1,827,324 Net Increase (Decrease) in Fiduciary Net Position244,801 30,387 7,800 (7,305) - 2,516 278,199 Net Position/(Deficit), Beginning of Year (Restated)1,846,433 2,159,706 393 269,403 - 20,741 4,296,676 Net Position/(Deficit), End of Year 2,091,234$ 2,190,093$ 8,193$ 262,098$ -$ 23,257$ 4,574,875$
95
City of Rancho Mirage, California
Statistical Section (Unaudited)
June 30, 2021
This section of the City of Rancho Mirage Annual Financial Report presents 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
how the City’s financial position has change over time.
•Net Position by Component
•Changes in Net Position
•Fund Balances of Governmental Funds
•Changes in Fund Balances of Governmental Funds
•Major Revenue Sources
Revenue Capacity – these schedules contain information to help the reader assess the City’s local revenue
sources.
•Property Tax Dollar Breakdown
•Property Tax Roll Summary
•Net Taxable Assessed Value
•Assessed Value of Taxable Property
•Sales Value History
•Top 25 Sales Tax Producers
•Taxable Sales by Category
•Use Category Summary
•Top Property Owners
•Direct & Overlapping Property Tax Rates
Debt Capacity – these schedules present information to help the reader understand and assess the City’s
current level of understanding debt and the City’s ability to issued additional debt in the future.
•Ratios of Outstanding Debt by Type
•Direct and Overlapping Governmental Activities Debt
•Ratio of General Bonded Debt Outstanding
•Computation of Legal Debt Margin
•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.
•Demographic and Economic Statistics
96
City of Rancho Mirage, California
Statistical Section (Unaudited)
June 30, 2021
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
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities:
Net investment in capital assets 175,897,018$ 173,721,979$ 169,361,896$ 189,201,277$ 195,017,405$ 203,793,295$ 186,830,996$ 183,489,492$ 180,620,208$ 178,889,733$
Restricted for:
Community development - - 2,776,402 - - - - - - -
Public safety 601,437 817,810 358,502 363,946 67,515 71,102 71,904 87,180 95,486 87,394
Public works 4,878,272 5,236,768 12,540,986 10,122,089 10,273,951 11,651,721 10,117,877 11,173,733 10,414,871 10,331,259
Cultural and recreation 4,771,380 4,786,108 8,075,742 7,947,505 7,236,936 5,776,887 6,089,060 6,787,886 6,522,873 7,121,263
Affordable Housing - - 20,402,172 19,158,204 18,398,780 16,653,476 15,402,327 14,250,957 13,761,336 14,881,191
Debt Service - - 397,697 - - - - - - -
Unrestricted 102,864,212 99,635,002 76,304,179 68,338,450 72,676,473 68,601,889 72,153,734 75,563,998 74,133,130 75,839,135
Total governmental activities net position 289,012,319$ 284,197,667$ 290,217,576$ 295,131,471$ 303,671,060$ 306,548,370$ 290,665,898$ 291,353,246$ 285,547,904$ 287,149,975$
Business-type activities
Unrestricted - - - - - - 759,966 2,661,144 4,221,614 2,985,065
Total business-type activities net position -$ -$ -$ -$ -$ -$ 759,966$ 2,661,144$ 4,221,614$ 2,985,065$
Primary Government
Net investment in capital assets 175,897,018 173,721,979 169,361,896 189,201,277 195,017,405 203,793,295 186,830,996 183,489,492 180,620,208 178,889,733
Restricted 10,251,089 10,840,686 44,551,501 37,591,744 35,977,182 34,153,186 31,681,168 32,299,756 30,794,566 32,421,107
Unrestricted 102,864,212 99,635,002 76,304,179 68,338,450 72,676,473 68,601,889 72,913,700 78,225,142 78,354,744 78,824,200
Total primary government net position 289,012,319$ 284,197,667$ 290,217,576$ 295,131,471$ 303,671,060$ 306,548,370$ 291,425,864$ 294,014,390$ 289,769,518$ 290,135,040$
CITY OF RANCHO MIRAGE
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
-
50
100
150
200
250
300
350
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Invested in Cap Assets Restricted Unrestricted
97
■ Iii
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses:
Governmental activities:
General government 16,759,819 13,468,932 15,913,364 13,943,090 14,100,798 16,058,396 13,976,257 19,897,322 18,581,500 23,386,103
Public safety 11,171,851 11,617,269 11,671,073 12,839,419 13,835,649 13,895,518 15,635,002 16,707,040 17,438,400 18,273,856
Public works 8,848,181 6,416,177 3,983,985 2,403,921 8,102,067 8,226,341 28,243,389 9,419,513 11,405,214 10,623,648
Cultural and recreation 3,911,881 3,737,506 4,111,622 3,742,686 3,683,874 3,766,364 3,604,593 4,388,436 5,304,080 4,513,621
Interest on long-term debt and other charges 4,690,367 148,678 182,285 64,956 2,124 2,124 1,916 1,496 1,496 1,277
Total Governmental Activities Expenses 45,382,099 35,388,562 35,862,329 32,994,072 39,724,512 41,948,743 61,461,157 50,413,807 52,730,690 56,798,505
Business-type activities:
Rancho Mirage Energy Authority - - - - - - 1,334,576 16,039,442 18,162,800 19,099,441
Total Expenses 45,382,099 35,388,562 35,862,329 32,994,072 39,724,512 41,948,743 62,795,733 66,453,249 70,893,490 75,897,946
Program revenues:
Governmental activities:
Charges for services:
General government 2,513,900 2,789,596 2,988,180 3,003,917 2,916,474 3,285,915 4,004,118 4,536,219 4,784,296 6,516,923
Public safety 143,233 133,530 118,731 140,725 144,974 168,537 611,441 1,433,799 1,296,667 1,214,233
Public works 505,088 378,281 538,518 547,696 429,192 645,807 767,255 778,114 601,250 887,432
Cultural and recreation 522,781 495,635 579,327 576,415 624,566 599,685 591,869 697,150 621,393 639,401
Operating grants and Contributions 2,098,306 864,205 1,276,702 1,489,580 640,104 673,435 1,871,418 1,296,129 1,461,283 10,793,820
Capital Grants and Contributtions 1,448,786 936,367 7,750,169 9,267,970 9,683,788 5,996,787 3,514,412 905,939 811,100 916,218
Total Governmental Activities Program Revenues 7,232,094 5,597,614 13,251,627 15,026,303 14,439,098 11,370,166 11,360,513 9,647,350 9,575,989 20,968,027
Business-type activities:
Charges for services:
Electricity - - - - - - 2,094,542 17,939,694 19,673,613 17,844,550
Total business-type activities - - - - - - 2,094,542 17,939,694 19,673,613 17,844,550
Total Program Revenues 7,232,094 5,597,614 13,251,627 15,026,303 14,439,098 11,370,166 13,455,055 27,587,044 29,249,602 38,812,577
Net (Expense)/Revenue:
Governmental Activities (38,150,005) (29,790,948) (22,610,702) (17,967,769) (25,285,414) (30,578,577) (50,100,644) (40,766,457) (43,154,701) (35,830,478)
Business-type Activity - - - - - - 759,966 1,900,252 1,510,813 (1,254,891)
Total Net Expense (38,150,005) (29,790,948) (22,610,702) (17,967,769) (25,285,414) (30,578,577) (49,340,678) (38,866,205) (41,643,888) (37,085,369)
Fiscal Year
CITY OF RANCHO MIRAGE
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
98
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fiscal Year
CITY OF RANCHO MIRAGE
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes 15,227,258 4,571,549 4,787,627 5,369,047 4,022,651 4,450,626 4,670,127 4,635,750 4,711,050 5,639,128
Transient occupancy taxes 5,356,152 5,606,679 6,083,198 8,321,487 8,965,701 10,239,677 10,633,834 11,783,145 7,303,420 7,419,484
Sales tax 3,970,239 3,882,102 4,225,803 4,414,202 5,808,722 6,278,671 6,348,008 7,407,639 6,460,797 7,128,147
Franchise taxes 1,239,565 1,244,971 1,293,858 1,330,464 1,313,731 1,274,512 1,299,089 1,320,455 1,318,872 1,342,103
Motor vehicle in lieu 17,612 7,483 7,272 - - - - - -
Library and fire services 7,702,636 10,039,639 9,346,265 10,457,817 10,706,310 10,849,069 11,671,766 11,639,995 12,505,323 13,594,413
Investment income, net of increase (decrease)2,371,476 154,797 1,919,613 1,433,588 2,369,063 (210,687) 70,313 4,485,113 5,015,665 2,024,123
in fair value
Other general revenues 483,148 832,364 1,009,714 660,597 638,825 574,019 140,938 181,708 34,232 285,151
Total governmental activities 36,368,086 26,339,584 28,666,078 31,994,474 33,825,003 33,455,887 34,834,075 41,453,805 37,349,359 37,432,549
Business-type activity:
Investment income - - - - - - - 926 49,657 18,342
Total business-type activities - - - - - - - 926 49,657 18,342
Total general revenues 36,368,086 26,339,584 28,666,078 31,994,474 33,825,003 33,455,887 34,834,075 41,454,731 37,399,016 37,450,891
Extraordinary gain - dissolution of redevelopment agency 98,551,208 - - - - - - - - -
Change in Net Assets
Governmental Activities (1,781,919) (3,451,364) 6,055,376 14,026,705 8,539,589 2,877,310 (15,266,569) 687,348 (5,805,342) 1,602,071
Business-type Activity - - - - - - 759,966 1,901,178 1,560,470 (1,236,549)
Total Change in Net Assets (1,781,919) (3,451,364) 6,055,376 14,026,705 8,539,589 2,877,310 (14,506,603) 2,588,526 (4,244,872) 365,522
Net position at beginning of year 192,243,030 287,649,031 284,162,200 281,104,766 295,131,471 303,671,060 305,932,467 291,425,864 291,425,864 289,769,518
Net position at end of year 190,461,111 284,197,667 290,217,576 295,131,471 303,671,060 306,548,370 291,425,864 294,014,390 287,180,992 290,135,040
1 Net Position at beginning of year, as restated.
-
10
20
30
40
50
60
70
80
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Total Governmental Activities Program Revenues
Total Governmental Activities Expenses
1 1
99
liiil
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General fund:
Nonspendable 1,528,746 1,457,427 2,237 49,737 1,355,244 2,461,754 3,500,789 4,543,655 5,019,518 5,684,512
Restricted - - 2,776,402 2,766,508 - - - - - -
Committed - 69,050,503 68,844,577 59,351,430 58,727,936 57,628,539 51,069,382 62,010,825 57,325,325 57,325,325
Assigned 10,442,621 - - - - - - - - -
Unassigned 69,339,232 9,644,859 8,438,907 7,104,867 13,797,120 11,675,111 16,858,650 11,814,009 13,745,152 7,785,443
Total general fund 81,310,599 80,152,789 80,062,123 69,272,542 73,880,300 71,765,404 71,428,821 78,368,489 76,089,995 70,795,280
All other governmental funds:
Nonspendable - - - - - 49,011 57,489 41,523 16,620 2,934
Restricted 35,582,727 34,748,513 41,775,099 37,591,744 35,977,182 34,104,175 31,623,679 32,258,233 30,777,946 32,418,173
Assigned 3,204,062 3,491,600 - - - - - - - -
Total all other governmental funds 38,786,789 38,240,113 41,775,099 37,591,744 35,977,182 34,153,186 31,681,168 32,299,756 30,794,566 32,421,107
Total all governmental funds 120,097,388 118,392,902 121,837,222 106,864,286 109,857,482 105,918,590 103,109,989 110,668,245 106,884,561 103,216,387
Source: City of Rancho Mirage Comprehensive Annual Financial Report
CITY OF RANCHO MIRAGE
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
100
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues:
Taxes 32,941,333$ 16,919,360$ 18,400,854$ 21,004,420$ 21,976,228$ 23,842,188$ 24,889,953$ 27,000,459$ 22,163,565$ 23,676,075$
Intergovernmental 4,827,425 4,660,697 10,357,124 13,856,874 13,450,267 9,473,445 8,614,965 5,640,609 4,976,276 8,046,608
Licenses and permits 518,934 395,051 579,343 587,991 459,198 683,142 867,562 878,287 675,460 960,131
Charges for services 2,171,134 2,378,958 2,491,692 2,518,655 2,500,465 2,624,768 2,795,891 4,450,645 4,830,871 5,561,286
Fines and forfeitures 220,787 172,006 117,286 152,365 195,585 163,159 146,565 196,819 175,981 170,728
Special assessments 5,837,585 5,637,368 5,814,081 6,291,178 6,378,120 6,652,187 7,007,130 6,633,877 7,282,403 8,380,834
Developer fees 122,714 333,482 459,968 425,315 309,395 632,333 350,051 583,385 514,000 1,112,332
Interest income 2,368,457 1,807,018 2,167,983 2,621,855 1,303,604 1,514,911 1,435,569 1,574,274 2,173,012 1,828,812
Net increase (decrease) in investment
fair value 3,018 (1,652,222) (248,365) (1,188,267) 1,065,455 (1,679,273) (1,530,081) 2,910,840 2,727,692 (1,861,932)
Miscellaneous 1,158,773 1,285,480 1,834,881 842,779 704,218 777,526 1,479,595 1,139,769 795,940 3,276,946
Total revenues 50,170,160 31,937,198 41,974,847 47,113,165 48,342,535 44,684,386 46,057,200 51,008,964 46,315,200 51,151,820
Expenditures
Current:
General government 16,250,447 12,986,122 15,440,998 23,082,434 13,333,039 13,311,870 17,645,388 15,307,963 16,867,408 21,559,602
Public safety 11,128,163 11,534,478 11,592,206 12,765,081 13,737,146 13,753,141 15,612,705 16,633,395 17,357,728 18,163,214
Public works 4,206,854 4,214,711 4,784,598 4,587,543 4,425,334 4,151,733 4,183,389 4,153,104 4,661,471 4,467,781
Cultural and recreation 3,403,227 3,223,476 3,585,292 3,222,867 3,166,183 3,310,509 3,300,376 3,417,509 4,285,061 3,464,243
Capital Projects 6,390,604 1,292,417 2,518,657 12,029,716 10,664,717 14,073,105 8,123,943 3,916,026 6,904,296 7,142,234
Debt service:
Principal 180,000 185,000 410,000 6,204,038 20,796 20,796 21,004 21,215 21,424 21,643
Interest 3,989,310 205,483 198,776 194,422 2,124 2,124 1,916 1,496 1,496 1,277
Payments under pass-through 6,569,870 - - - - - - - - -
agreements
Service fees 25,530 - - - - - - - - -
Total expenditures 52,144,005 33,641,687 38,530,527 62,086,101 45,349,339 48,623,278 48,888,721 43,450,708 50,098,884 54,819,994
Excess (deficiency) of
revenues over (under)
expenditures (1,973,845) (1,704,489) 3,444,320 (14,972,936) 2,993,196 (3,938,892) (2,831,521) 7,558,256 (3,783,684) (3,668,174)
Other financing sources (uses):
Transfers in 5,533,710 2,555,006 2,130,851 6,159,413 2,221,626 2,744,415 3,096,067 2,423,034 2,869,765 2,743,866
Transfers out (5,533,710) (2,555,006) (2,130,851) (6,159,413) (2,221,626) (2,744,415) (3,096,067) (2,423,034) (2,869,765) (2,743,866)
Total other financing sources (uses)- - - - - - - - - -
Extraordinary Item:
Dissolution of former Redevelopment Agency (59,299,969) - - - - - - - - -
Net change in fund balances (61,273,814)$ (1,704,489)$ 3,444,320$ (14,972,936)$ 2,993,196$ (3,938,892)$ (2,831,521)$ 7,558,256$ (3,783,684)$ (3,668,174)$
Debt service as a percentage of
noncapital expenditures 9.1% 1.4% 1.7% 12.8% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0%
Fiscal Year
CITY OF RANCHO MIRAGE
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
The City of Rancho Mirage implemented
GASB 34 for the fiscal year ended June 30,
101
City
Fiscal Property Tax
Year and RDA Transient Special Developer Licenses &Charges for
End Tax Increment Interest Occupancy Assessments Franchise Fees Permits Services Total
2012 26,437,010 2,592,296 4,925,307 5,837,583 1,239,565 122,712 518,935 690,640 42,364,048
2013 4,571,549 1,807,018 5,606,679 5,637,368 1,244,971 333,482 395,051 814,814 20,410,932
2014 4,787,627 2,167,983 6,083,198 5,814,081 1,293,858 459,968 579,343 2,491,692 23,677,750
2015 4,811,468 1,835,295 7,836,713 5,756,164 1,330,464 89,000 584,771 1,647,302 23,891,177
2016 4,527,187 903,931 8,533,310 5,831,968 1,313,731 242,944 454,692 1,594,920 23,402,683
2017 3,805,031 1,064,868 9,737,434 6,100,196 1,274,512 512,004 679,607 1,733,779 24,907,431
2018 4,670,127 1,435,569 10,633,834 7,007,130 1,299,089 350,051 867,562 2,795,891 29,059,253
2019 4,635,750 1,574,274 11,783,145 6,633,877 1,320,455 583,385 878,287 4,450,645 31,859,818
2020 4,711,050 2,173,012 7,303,420 7,282,403 1,318,872 514,000 675,460 4,830,871 28,809,088
2021 5,639,128 1,828,812 7,419,484 8,380,834 1,342,103 1,112,332 960,131 5,561,286 32,244,110
Percentage change:
2012-2021 -78.7%-29.5%50.6%43.6%8.3%806.5%85.0%705.2%-23.9%
CITY OF RANCHO MIRAGE
Major Revenue Sources - Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
102
PROPERTY TAX DOLLAR BREAKDOWN
THE CITY OF RANCHO MIRAGE
$ 0.01553 Cv Mosquito & Vector Control
$ 0.00382 Riverside County Reg. Park & Open Space
$ 0.00177 Palm Springs Public Cemetery
$ 0.00040 Coachella Valley Resource Conservation
$ 1.0000
$ 0.2990 Palm Springs Unified School
$ 0.12630 ERAF Share of County General
$ 0.1261 County General
$ 0.00607 ERAF Share of Rancho Mirage General Fund
$ 0.0988 Rancho Mirage General Fund
$ 0.0853 Desert Community College
$ 0.0666 Rancho Mirage CSD Fire
$ 0.0464 Riverside County Office of Education
$ 0.0393 CVWD Storm Water Unit
$ 0.0310 CVWD - State Water Project
$ 0.0309 Rancho Mirage CSD Library
$ 0.0226 Desert Hospital
ATI (Annual Tax Increment) Ratios for Tax Rate Area 017-175, Excluding Redevelopment Factors & Additional Debt Service
This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone
Prepared On 7/28/2021 By MV Data Source: Riverside County Assessor 2020/21 Annual Tax Increment Tables
103
2020/21 ROLL SUMMARY
THE CITY OF RANCHO MIRAGE
Taxable Property Values
Secured Nonunitary Utilities Unsecured
2,856,541,323
6,944,243,590
16,463,437
5,180,985
Aircraft
Fixtures
Personal Property
Improvements
Land
TRAs
Parcels
Values
$9,822,429,335Total Value
0
$217,582,090
0
$1,980,000
0 0
54,872,543
160,823,311
1,886,236
0
53
562
0
0
1,980,000
1
1 13,471
120
Total Net Value $9,185,389,567
Total Exemptions*$637,039,768
Homeowners* 29,030,400
Aircraft
Fixtures 448,406
Personal Property 372,303
Real Estate 636,219,059
Exemptions
0
$110,417,552
$107,164,538
0
0
$0
0
$1,980,000
0
0
15,507,376
94,310,928
599,248
0
0
Combined Values Total
Total Values $10,041,991,425
Net Total Values
Total Exemptions
$9,294,534,105
$747,457,320
Net Aircraft Values $0
*Note: Homeowner Exemptions are not included in Total Exemptions
Totals do not Include Aircraft Values or Exemptions
This report is not to be used in support of debt issuance or continuing disclosure statements without the written
consent of HdL, Coren & Cone
Prepared On 7/28/2021 By MV Data Source: Riverside County Assessor 2020/21 Combined Tax Rolls
104
NET TAXABLE ASSESSED VALUE HISTORY
THE CITY OF RANCHO MIRAGE
2011/12 - 2020/21 Taxable Property Values
Lien Year Secured Unsecured SBE Nonunitary Net Total AV % Change
2011/12 $1,206,604$122,649,654$7,068,971,567 7,192,827,825
2012/13 $1,206,604$112,165,925$7,067,615,088 7,180,987,617 -0.16%
2013/14 $1,206,604$101,877,646$7,236,675,152 7,339,759,402 2.21%
2014/15 $1,206,604$95,581,717$7,546,223,218 7,643,011,539 4.13%
2015/16 $1,206,604$103,642,342$7,828,064,961 7,932,913,907 3.79%
2016/17 $1,206,604$107,179,121$8,045,875,869 8,154,261,594 2.79%
2017/18 $1,206,604$108,388,709$8,261,389,878 8,370,985,191 2.66%
2018/19 $1,980,000$110,985,678$8,543,095,822 8,656,061,500 3.41%
2019/20 $1,980,000$108,972,915$8,863,316,087 8,974,269,002 3.68%
2020/21 $1,980,000$107,164,538$9,185,389,567 9,294,534,105 3.57%
Average % Change 3.29%
$0
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
2011/122012/132013/142014/152015/162016/172017/182018/192019/202020/21SBE Nonunitary Unsecured Secured
* Net AV changes less than two percent are in purple font. Negative Net AV percent changes are in red.
This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone
Prepared On 7/28/2021 By MV Data Source: Riverside County Assessor 0/ - 2020/21 Combined Tax Rolls
105
□ ■
ASSESSED VALUE OF TAXABLE PROPERTY
THE CITY OF RANCHO MIRAGE
2011/12 - 2020/21 Taxable Property Values
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Residential 5,399,652,150 5,361,500,878 5,580,579,341 5,836,504,705 6,160,747,998 6,314,536,324 6,472,476,160 6,703,468,553 7,080,886,697 7,411,749,174
Commercial 809,206,746 799,283,920 788,296,478 803,646,057 836,329,412 860,560,037 892,184,727 964,969,418 961,988,294 962,056,117
Industrial 13,450,682 13,606,194 13,764,817 15,761,475 14,244,448 14,461,304 14,634,526 15,211,213 261,047 266,266
Agricultural 922,448 1,336,400 1,195,229 1,200,653 905,055 918,855 937,231 955,975 74,512,589 73,741,539
Govt. Owned 2,200,000 2,284,106 85,786 86,176 296,629 0 0 0 0 20,508
Institutional 273,893 3,396,524 222,903 223,916 228,388 231,870 236,508 241,237 246,063 250,984
Miscellaneous 203,996 207,106 211,248 215,472 219,781 224,176
Recreational 107,911,341 114,829,693 93,223,889 98,386,291 100,382,624 101,347,464 139,968,535 138,903,488 88,230,546 82,445,226
Vacant 379,956,890 359,504,369 342,895,848 344,325,610 351,697,092 374,907,130 353,284,342 353,966,482 287,508,599 288,538,179
SBE Nonunitary 1,206,604 1,206,604 1,206,604 1,206,604 1,206,604 1,206,604 1,206,604 1,980,000 1,980,000 1,980,000
Cross Reference 355,397,417 411,873,004 416,410,861 446,088,334 363,029,319 378,705,778 387,456,601 365,163,984 369,462,471 365,394,431
Unsecured 122,649,654 112,165,925 101,877,646 95,581,717 103,642,342 107,179,121 108,388,709 110,985,678 108,972,915 107,164,538
Exempt [93,209,570] [95,073,223] [96,872,321] [98,871,584] [100,856,729] [100,856,643] [102,519,215] [104,569,292][0] [1,843,463]
Unknown 1 0 1 0 0 702,967
TOTALS 7,192,827,825 7,180,987,617 7,339,759,402 7,643,011,539 7,932,913,907 8,154,261,594 8,370,985,191 8,656,061,500 8,974,269,002 9,294,534,105
Total Direct Rate 0.62657 0.61882 0.14316 0.14099 0.14947 0.14989 0.14997 0.15051 0.15142 0.15290
Category
Notes:
Exempt values are not included in Total.
In 1978 the voters of the State of California passed Proposition 13 which limited 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 of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed
based upon the added value of the construction or at the purchase price (market value) or economic value 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.
This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone
Prepared On 7/28/2021 By MV Data Source: Riverside County Assessor 2011/12 - 2020/21 Combined Tax Rolls
106
SALES VALUE HISTORY
THE CITY OF RANCHO MIRAGE
Single Family Residential Full Value Sales (01/01/2019 - 6/30/2021)
Full Value Sales Median PriceYearAverage Price Median % Change
870 $687,6572019 $550,750
1,145 $722,719 3.31%2020 $569,000
749 $820,545 16.08%2021 $660,500
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
201920202021Median Price Avg Price
YearSales Price*Sales not included in the analysis are quitclaim deeds, trust transfers, timeshares, and partial sales.
This report is not to be used in support of debt issuance or continuing disclosure statements without the written
consent of HdL, Coren & Cone
Prepared On 7/28/2021 By MV Data Source: Riverside County Recorder
107
-
-
CITY OF RANCHO MIRAGE
FOR FISCAL YEAR 2020-21
TOP 25 SALES TAX PRODUCERS
Business Name Business Category
Albertsons Grocery Stores
Audi Leasing Bentley Leasing Auto Lease
Cart Mart Boats/Motorcycles
Cheesecake Factory Casual Dining
Clarks Nutrition Center Grocery Stores
CVS Pharmacy Drug Stores
Desert European Motorcars New Motor Vehicle Dealers
Eisenhower Medical Center Medical/Biotech
Ferguson Enterprises Plumbing/Electrical Supplies
Financial Services Vehicle Trust Auto Lease
Gelson's Markets Grocery Stores
Hobby Lobby Specialty Stores
Home Depot Building Materials
JP Morgan Chase Bank Auto Lease
Kristine Schultz Interior Design Home Furnishings
Las Casuelas Nuevas Casual Dining
Mistys Consignments Second-Hand Stores
Omni Rancho Las Palmas Resort & Spa Hotels-Liquor
Pacific Sales Electronics/Appliance Stores
Pacific Sales w/Best Buy Electronics/Appliance Stores
Pirch Electronics/Appliance Stores
Porsche Leasing Auto Lease
Scandinavian Designs Home Furnishings
Walgreens Drug Stores
Yard House Casual Dining
* Firms Listed Alphabetically
Period: July 2020 Thru March 2021
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL
Companies
Percent of Fiscal Year Total Paid By Top 25 Accounts = 68.38%
Printed 07/28/2021
108
CITY OF RANCHO MIRAGE
FOR FISCAL YEAR 2011-12
TOP 25 SALES TAX PRODUCERS
Business Name Business Category
76 Service Stations
Albertsons Grocery Stores
Audi Leasing Bentley Leasing Auto Lease
Bluember & R Bar Hotels-Liquor
Cheesecake Factory Casual Dining
Chevron Service Stations
Clarks Nutrition Center Grocery Stores
CVS Pharmacy Drug Stores
Desert European Motorcars New Motor Vehicle Dealers
Electric Car Distributor Boats/Motorcycles
Ferguson Enterprises Plumbing/Electrical Supplies
Home Depot Building Materials
Jo Ann Fabrics & Crafts Specialty Stores
Mission Hills Country Club Leisure/Entertainment
P.F. Chang's Fine Dining
Pacific Sales Electronics/Appliance Stores
Pieros Acqua Pazza Casual Dining
Randy Patton Design Studio Home Furnishings
Scandinavian Designs Home Furnishings
Standards of Excellence Electronics/Appliance Stores
Valero Service Stations
Verizon Wireless Electronics/Appliance Stores
Vons Grocery Stores
Westin Mission Hills Hotels-Liquor
Yard House Casual Dining
* Firms Listed Alphabetically
Period: July 2011 Thru June 2012
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL
Companies
Percent of Fiscal Year Total Paid By Top 25 Accounts = 63.51%
Printed 07/28/2021
109
City of Rancho Mirage
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Adjusted for Economic Data
Food Stores $ 20,051 $ 19,874 $ 20,565 $ 21,409 $ 19,809 $ 19,186 $ 19,758 $ 20,678 $ 21,085 $ 23,701
Eating and Drinking Places 83,969 86,413 86,527 88,827 85,351 84,996 92,012 96,853 97,688 61,203
Service Stations 18,333 18,348 17,152 16,015 13,163 12,015 13,605 14,195 14,135 8,549
Other Retail Stores 199,696 197,692 218,780 230,726 235,097 261,151 275,837 305,918 325,263 292,361
All Other Outlets 92,674 95,406 99,378 115,116 127,455 139,893 145,720 155,055 180,962 142,023
Total $ 414,722 $ 417,733 $ 442,403 $ 472,092 $ 480,875 $ 517,242 $ 546,933 $ 592,699 $ 639,133 $ 527,837
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories
presented are intended to provide alternative information regarding the sources of the City's revenue.
110
2020/21 USE CATEGORY SUMMARY
THE CITY OF RANCHO MIRAGE
BASIC PROPERTY VALUE TABLE
Category Parcels Net Taxable ValueAssessed Value
$7,425,997,435 $7,411,749,174Residential(73.9%)(79.7%)11,987
$1,527,635,759 $962,056,117Commercial(15.2%)(10.4%)453
$266,266 $266,266Industrial(0.0%)(0.0%)2
$73,741,539 $73,741,539Agricultural(0.7%)(0.8%)14
$24,664,183 $20,508Govt. Owned (0.2%)(0.0%)2
$9,616,949 $250,984Institutional(0.1%)(0.0%)4
$224,176 $224,176Miscellaneous(0.0%)(0.0%)1
$88,964,298 $82,445,226Recreational(0.9%)(0.9%)136
$294,919,105 $288,538,179Vacant(2.9%)(3.1%)869
$1,843,463 $0Exempt(0.0%)(0.0%)2,549
$1,980,000 $1,980,000SBE Nonunitary (0.0%)(0.0%)[1]
$365,692,351 $365,394,431Cross Reference (3.6%)(3.9%)[11,541]
$217,582,090 $107,164,538Unsecured(2.2%)(1.2%)[562]
$10,707,274 $702,967Unknown(0.1%)(0.0%)3
TOTALS 16,020 $10,043,834,888 $9,294,534,105
79.7%
Residential
10.4%
Commercial
3.9%
Cross
3.1%
Vacant
2.9%
Others
NET TAXABLE VALUE
73.9%
Residential
15.2%
Commercial
3.6%
Cross
2.9%
Vacant
4.3%
Others
ASSESSED VALUE
This report is not to be used in support of debt issuance or continuing disclosure statements without the
written consent of HdL, Coren & Cone
Prepared On 7/28/2021 By MV Data Source: Riverside County Assessor 2020/21 Combined Tax Rolls
111
Top Property Owners Based On Net Values
THE CITY OF RANCHO MIRAGE
2020/21 TOP TEN PROPERTY TAXPAYERS
Owner Secured Unsecured Combined Primary Use &
Primary AgencyParcels Value ValueParcels Value
% of
Net AV
% of
Net AV % of
Net AV
1) 34 1$82,127,906 $3,439,571 $85,567,477 Commercial 0.89% 3.21% 0.92%Successor AgencyKSL RLP HOLDINGS/OMNI RANCHO LAS PALMAS
2) 4 $73,295,765 $73,295,765 Commercial 0.80% 0.79%Successor Agency(Pending Appeals On Parcels)
CHEER LAND THE RIVER
3) 40 16$61,667,572 $10,204,333 $71,871,905 Commercial 0.67% 9.52% 0.77%Successor AgencyEISENHOWER MEDICAL CENTER INC
4) 1 $67,077,709 $67,077,709 Agricultural 0.73% 0.72%Rancho Mirage General FundECRM COMMERCIAL
5) 8 $62,029,879 $62,029,879 Residential 0.67% 0.67%Successor AgencyPORCUPINE PROPERTIES LLC
6) 20 3$56,870,699 $4,798,102 $61,668,801 Commercial 0.62% 4.48% 0.66%Successor AgencyNEWAGE RANCHO MIRAGE
7) 72 3$36,493,994 $2,690,616 $39,184,610 Cross-Reference 0.40% 2.51% 0.42%Successor AgencyMISSION HILLS COUNTRY CLUB INC
8) 14 $38,784,979 $38,784,979 Commercial 0.42% 0.42%Successor AgencyG AND I IX RANCHO
9) 9 $38,433,561 $38,433,561 Commercial 0.42% 0.41%Successor AgencyINDIGO PROPERTIES RANCHO MIRAGE
10) 1 $37,000,000 $37,000,000 Commercial 0.40% 0.40%Successor Agency(Pending Appeals On Parcels)
CHAN ATHENA LAI MING
19.72% 6.02%$574,914,686$21,132,622$553,782,064 23 203Top Ten Total 6.18%
$107,164,538$9,196,909,326City Total $9,304,073,864
*Value includes Outer TRAs
*
Top Owners last edited on 7/28/21 by MaheaV using sales through 06/30/21 (Version R.1)
This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone
Prepared On 7/28/2021 By MV Data Source: Riverside County Assessor 2020/21 Combined Tax Rolls and the SBE Non Unitary Tax Roll
112
Top Property Owners Based On Net Values
THE CITY OF RANCHO MIRAGE
2011/12 TOP TEN PROPERTY TAXPAYERS
Owner Secured Unsecured Combined Primary Use &
Primary AgencyParcels Value ValueParcels Value
% of
Net AV
% of
Net AV % of
Net AV
1) 13 $91,143,085 $91,143,085 Commercial 1.29% 1.27%Successor AgencyWALLIS ANNENBERG
2) 4 1$85,483,117 $6,638 $85,489,755 Commercial 1.21% 0.01% 1.19%Successor Agency(Pending Appeals On Parcels)
RIVER RETAIL LLC
3) 32 12$45,268,383 $9,111,454 $54,379,837 Commercial 0.64% 7.43% 0.76%Successor AgencyEISENHOWER MEDICAL CENTER
4) 6 $50,943,000 $50,943,000 Commercial 0.72% 0.71%Successor AgencyRANCHO CALIFORNIA INVESTMENT
5) 5 $48,719,236 $48,719,236 Vacant 0.69% 0.68%Rancho Mirage General FundSA CALIFORNIA GROUP INC
6) 16 1$39,731,640 $7,824,328 $47,555,968 Commercial 0.56% 6.38% 0.66%Successor Agency(Pending Appeals On Parcels)
STARWOOD MISSION HILLS CMBS I
7) 18 $42,900,000 $42,900,000 Recreational 0.61% 0.60%Successor AgencyPORCUPINE PROPERTIES LLC
8) 32 $40,330,948 $40,330,948 Commercial 0.57% 0.56%Successor Agency(Pending Appeals On Parcels)
KSL RLP HOLDINGS
9) 17 $36,045,418 $36,045,418 Commercial 0.51% 0.50%Successor Agency(Pending Appeals On Parcels)
ATC REALTY ONE LLC
10) 2 $25,622,890 $25,622,890 Commercial 0.36% 0.36%Successor AgencyEISENHOWER PROPERTIES
13.81% 7.15%$523,130,137$16,942,420$506,187,717 14 145Top Ten Total 7.27%
$122,649,654$7,077,683,988City Total $7,200,333,642
*Value includes Outer TRAs
*
Top Owners last edited on 7/8/14 by maheav using sales through 06/30/12 (Version R.1)
This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone
Prepared On 7/28/2021 By MV Data Source: Riverside County Assessor 2011/12 Combined Tax Rolls and the SBE Non Unitary Tax Roll
113
DIRECT & OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF TAXABLE VALUE)
THE CITY OF RANCHO MIRAGE
Last 10 Fiscal Years
Agency 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Basic Levy¹1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Coachella Valley Water District Ds 0.08000 0.08000 0.10000 0.10000 0.10000 0.10000 0.10000 0.10000 0.10000 0.10000
Desert Community College Ds 0.01995 0.01995 0.01995 0.02325 0.02087 0.02036 0.04030 0.03978 0.03983 0.03947
Desert Sands Unified School Ds 0.11467 0.11156 0.10954 0.10984 0.10915 0.08599 0.07251 0.07418 0.07381 0.07390
Desert Water Agency 0.08000 0.10000 0.10000 0.10000 0.10000 0.10000 0.10000 0.10000 0.10000 0.10000
Palm Springs Unif B & I 1992-A Ds 0.10451 0.09351 0.12961 0.10160 0.08978 0.11802 0.11146 0.10603 0.10542 0.10334
Total Direct & Overlapping² Tax Rates 1.39913 1.40502 1.45910 1.43469 1.41980 1.42437 1.42427 1.41999 1.41906 1.41671
City's Share of 1% Levy Per Prop 13³0.19311 0.19311 0.19311 0.19310 0.19310 0.19310 0.19310 0.19310 0.19310 0.19310
Voter Approved City Debt Rate
Redevelopment Rate⁴1.00000
Total Direct Rate⁵0.62657 0.61882 0.14316 0.14099 0.14947 0.14989 0.14997 0.15051 0.15142 0.15290
Notes:
¹In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition
to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
²Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.
³City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where
known.
⁴Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied
only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.
⁵Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in
2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved
during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.
This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone
Prepared On 7/28/2021 By MV Data Source: Riverside County Assessor 2011/12 - 2020/21 Tax Rate Table
114
Fiscal Percentage
Year Revenue Tax Allocation Notes Loans of Personal Per
End Bonds Bonds 1 Payable Payable Total Income Capita
2012 4,790,000 - 298,726 - 5,088,726 0.43%288
2013 4,605,000 - 278,743 2,267,396 7,151,139 0.64%400
2014 4,415,000 - 258,561 2,027,214 6,700,775 0.61%374
2015 - - 238,176 - 238,176 0.02%13
2016 - - 217,593 - 217,593 0.02%12
2017 - - 196,797 - 196,797 0.02%11
2018 - - 175,793 - 175,793 0.02%10
2019 - - 154,578 - 154,578 0.01%8
2020 - - 133,154 - 133,154 0.01%7
2021 - - 111,511 - 111,511 0.01%6
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Sources: City of Rancho Mirage
CITY OF RANCHO MIRAGE
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
1 - As of January 31, 2012, Tax Allocation Bonds were transferred to the Successor Agency of the Redevelopment Agency of the City
of Rancho Mirage
115
CITY OF RANCHO MIRAGE
2020-21 Assessed Valuation: $9,305,169,564
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/21 % Applicable (1) Debt 6/30/21
Desert Community College District $392,435,000 10.537% $ 41,350,876
Desert Sands Unified School District 410,450,000 4.212 17,288,154
Palm Springs Unified School District 470,645,982 22.466 105,735,326
Coachella Valley Water District Assessment District No. 68 945,000 13.546 128,010
City of Rancho Mirage Community Facilities District No. 4A 6,420,000 100. 6,420,000
City of Rancho Mirage Community Facilities District No. 4B 5,975,000 100.5,975,000
City of Rancho Mirage 1915 Act Bonds 4,195,000 100.4,195,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $181,092,366
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Riverside County General Fund Obligations $717,525,698 2.971% $21,317,688
Riverside County Pension Obligation Bonds 881,575,000 2.971 26,191,593
Desert Sands Unified School District General Fund Obligations 24,960,000 4.212 1,051,315
City of Rancho Mirage 111,511 100.111,511
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $48,672,107
OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): $385,770,405 Various $73,012,590
TOTAL DIRECT DEBT $111,511
TOTAL OVERLAPPING DEBT $302,665,552
COMBINED TOTAL DIRECT AND OVERLAPPING DEBT $302,777,063 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages
were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided
by the district's total taxable assessed value, except for community facilities district overlapping debt which was estimated by
determining the special tax charged on property within the city, divided by the community facilities district’s total special tax for the
fiscal year.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2020-21 Assessed Valuation:
Total Overlapping Tax and Assessment Debt ................................... 1.95%
Total Direct Debt .............................................................................. 0.00%
Combined Total Debt ....................................................................... 3.25%
Ratios to Redevelopment Successor Agency Incremental Valuation ($5,796,654,442):
Total Overlapping Tax Increment Debt ............................................ 1.26%
Source: California Municipal Statistics, Inc.
116
Fiscal Year Percent of
Ended Revenue Tax Allocation Assessed Per
June 30 Bonds Bonds Loans Total Value 1 Capita
2012 4,970,000 157,870,276 2,314,566$ 165,154,842 1.20%9,446
2013 4,605,000 - - 4,605,000 0.03%260
2014 4,415,000 - 2,027,214 6,442,214 0.09%363
2015 - - - - 0.00%0
2016 - - - - 0.00%0
2017 - - - - 0.00%0
2018 - - - - 0.00%0
2019 - - - - 0.00%0
2020 - - - - 0.00%0
2021 - - - - 0.00%0
General bonded debt is debt payable with governmental fund resources.
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
Outstanding General Bonded Debt
CITY OF RANCHO MIRAGE
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
117
Outstanding Less:Total Net
Fiscal Lease Bond Debt Legal Debt
Year Revenue Reserve Applicable To Legal Debt Legal Debt Margin as a
End Bonds Requirement (2)Debt Limit Limit Margin % of Limit
2012 165,154,842 405,812 164,749,030 2,066,196,749 1,901,447,719 92.0%
2013 4,605,000 403,442 4,201,558 2,045,642,029 2,041,440,471 99.8%
2014 6,442,214 401,614 6,040,600 70,917,724 64,877,124 91.5%
2015 - - - 71,547,065 71,547,065 100.0%
2016 - - - 75,238,377 75,238,377 100.0%
2017 - - - 80,277,589 80,277,589 100.0%
2018 - - - 84,538,374 84,538,374 100.0%
2019 - - - 88,867,905 88,867,905 100.0%
2020 - - - 93,369,104 93,369,104 100.0%
2021 - - - 98,023,678 98,023,678 100.0%
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds (of which, the City has none).
1 Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
2 Limited to amounts held in bond reserve funds that are legally restricted toward
the repayment of specific debt issuances.
CITY OF RANCHO MIRAGE
Computation of Legal Debt Margin
Last Ten Fiscal Years
118
Revenue
Available for Debt Service Requirements
Description Debt Service Principal Interest Total Coverage
2005
Library Lease
Revenue Bonds
FY 2011-12 392,008 180,000 212,008 392,008 100.00%
FY 2012-13 390,482 185,000 205,482 390,482 100.00%
FY 2013-14 388,480 190,000 198,776 388,776 100.00%
FY 2014-15 - - - - -
FY 2015-16 - - - - -
FY 2016-17 - - - --
FY 2017-18 - - - --
FY 2018-19 - - - --
FY 2019-20 - - - --
FY 2020-21 - - - --
1995
Library Lease
Revenue Bonds
FY 2011-12 - - - - -
FY 2012-13 - - - - -
FY 2013-14 - - - - -
FY 2014-15 - - - - -
FY 2015-16 ----------
FY 2016-17 - - - - -
FY 2017-18 - - - - -
FY 2018-19 - - - - -
FY 2019-20 - - - - -
FY 2020-21 - - - - -
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 Redevolopment Agency that were used to make loan payments to the
Rancho Mirage Joint Powers Financing Authority.
Source: City of Rancho Mirage
CITY OF RANCHO MIRAGE
Pledged Revenue Coverage
Library Lease and Civic Center Revenue Bonds
Last Ten Fiscal Years
119
DEMOGRAPHIC AND ECONOMIC STATISTICS
THE CITY OF RANCHO MIRAGE
Median Age
% of Pop 25+ with
High School Degree
% of Pop 25+ with
Bachelor's Degree
Personal Income
(In Thousands)
Calendar
Year Population
Unemployment
Rate
Per Capita
Personal Income
62.0 95.0% 39.1%$1,157,3822011 17,504 12.1%$66,121
61.3 95.0% 38.6%$1,136,5512012 17,639 8.5%$64,434
60.5 94.7% 39.5%$1,074,9922013 17,745 7.4%$60,580
61.0 95.3% 40.0%$1,075,6222014 17,739 7.0%$60,636
62.0 95.0% 43.3%$1,107,6702015 18,070 5.7%$61,298
64.0 95.5% 43.9%$1,090,9102016 18,295 5.1%$59,628
65.8 96.1% 44.6%$1,121,8962017 18,738 3.3%$59,872
65.9 96.2% 42.7%$1,129,7682018 18,489 3.5%$61,104
66.3 95.3% 44.1%$1,159,2972019 19,114 3.2%$60,651
65.8 95.7% 45.1%$1,226,1372020 18,799 8.7%$65,223
59,000
60,000
61,000
62,000
63,000
64,000
65,000
66,000
67,000
0
2
4
6
8
10
12
14
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Per Capita Pers Income Unemployment RatePer Capita Personal IncomeUnemployment RatePersonal Income and Unemployment
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Less Than High School High School Graduate College GraduatePopulationEducation Level Attained for Population 25
and Over
Notes and Data Sources:
Population: California State Department of Finance. Unemployment Data: California Employment Development Department
2000-2009 Income, Age, and Education Data: ESRI - Demographic Estimates are based on the last available Census. Projections are developed by incorporating all of the prior census data released to
date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries
2010 and later - Income, Age and Education Data - US Census Bureau, most recent American Community Survey
This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Prepared On 7/28/2021 By MV
120
I ■ ■ ■
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
City Clerk 4.00 4.00 4.00 4.00 4.00 2.00 2.00 2.00 2.00 2.00
City Manager/Management Services 3.00 3.00 3.00 2.00 2.00 2.00 2.00 3.00 3.00 3.00
City Attorney 1 - - - - - - - - - -
Administration 6.00 6.00 6.00 7.00 7.00 6.00 6.00 6.00 5.00 5.00
Finance 4.00 4.00 4.00 7.00 6.00 6.00 5.00 5.00 6.00 6.00
Information Services 2.00 2.00 2.00 2.00 3.00 6.00 5.00 5.00 5.00 5.00
Planning 7.00 6.00 6.00 5.00 5.00 5.00 6.00 7.00 7.00 7.00
Building 4.00 4.00 4.00 3.00 3.00 4.00 4.00 4.00 4.00 4.00
Code Compliance 6.00 5.00 5.00 6.00 6.00 6.00 5.00 5.00 5.00 6.00
Engineering 10.00 10.00 10.00 8.00 8.00 9.00 9.00 8.00 8.00 8.00
Street Maintenance 5.00 5.00 5.00 5.00 7.00 7.00 6.00 7.00 7.00 7.00
Buildings & Grounds 5.00 5.00 5.00 6.00 6.00 6.00 6.00 7.00 7.00 7.00
General Government - - - - - - - - - -
Tourism & Marketing 1.00 1.00 1.00 3.00 3.00 3.00 3.00 3.00 4.00 4.00
Economic Development 2.00 2.00 2.00 2.00 2.00 2.00 3.00 2.00 1.00 1.00
GENERAL FUND SUB-TOTAL 59.00 57.00 57.00 60.00 62.00 64.00 62.00 64.00 64.00 65.00
Parkland Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Library Fund 12.00 12.00 12.00 12.00 13.00 13.00 16.00 17.00 17.00 16.00
Library Fund (full-time equivalents)1 11.58 11.55 11.55 11.55 10.99 11.55 10.98 10.98 10.98 11.05
Housing Authority 4.00 4.00 4.00 2.00 2.00 0.00 1.00 2.00 2.00 2.00
TOTAL 87.58 85.55 85.55 86.55 88.99 89.55 90.98 94.98 94.98 95.05
1 Attorney services have been contracted out since FY 2004
2 The Library utilizes several part-time employees whose hours, when combined, constitute full-time equivalents
Note: Police and fire services are provided by the County of Riverside.
Source: City of Rancho Mirage
CITY OF RANCHO MIRAGE
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Full-Time and Part-time Employees as of June 30
121
2012 2013 2014 2015
Public Works:
Permits issued:
Construction - Grading/Onsite 21 33 47 23
Encroachment 178 131 181 125
Pool drainage 42 44 51 21
Transportation 65 57 19 34
Miscellaneous 12 5 10
Maintenance of:
Miles of streets 74.0 74.0 74.0 74.0
Miles of bike paths 25.0 25.0 25.0 28.0
Number of major intersections 27 27 27 50
Number of traffic signals & safety lighting 62 62 62 192
Number of traffic signs 3,624 3,624 3,624 3,618
Number of street lights 208 208 208 190
Parks and Recreation:
Number of parks 5.0 5.0 5.0 5.0
Total acreage 13.0 13.0 13.0 16.0
Library
Items checked out 598,217 596,504 494,890 452,268
Patron visits to the library 323,607 332,207 277,033 259,960
Reference questions 99,966 102,054 77,207 70,496
Holds/reserves placed 72,162 64,207 78,197 50,928
Total website pageviews-not consistently recorded 575,128 939,045 1,250,660 860,497
Library cardholders as of June 40,154 39,212 43,088 43,299
Community Development
Number of building permits issued 989 1,284 1,538 1,472
Estimated valuation of building permits issued 30,272,385 47,745,353 58,818,223 73,199,083
Source: City of Rancho Mirage
Fiscal Year
CITY OF RANCHO MIRAGE
Operating Indicators by Function
Last Ten Fiscal Years
122
2016 2017 2018 2019 2020 2021
25 27 39 28 43 42
118 181 158 154 136 89
19 33 34 31 40 20
54 68 56 78 83 69
10 9 4 3 - -
74.0 74.0 74.0 74.0 74.0 74.0
28.0 28.0 28.0 32.0 41.0 41.0
50 50 50 50 50 50
192 192 221 221 221 221
3,618 3,618 3,850 3,925 4,000 4,125
190 190 190 190 190 190
5.0 5.0 5.0 5.0 5.0 5.0
16.0 16.0 30.6 30.6 30.6 30.6
418,150 396,752 367,906 369,775 294,567 300,186
245,969 252,771 238,896 249,657 173,860 38,941
73,840 62,519 60,974 67,529 49,880 15,557
4,561 37,382 50,644 48,482 42,238 31,297
738,626 838,768 659,531 954,632 654,435 102,249
45,565 42,676 39,301 43,800 46,384 47,447
1,493 1,569 1,680 1,999 1,893 2,654
58,432,733 66,279,313 67,638,159 103,556,206 105,770,129 170,488,642
Fiscal Year
123
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Works:
Miles of Public Streets 74.0 74.0 74.0 74.0 74.0 74.0 74.0 74.0 74.0 74.0
Miles of Public Bike Paths 25.0 25.0 25.0 28.0 28.0 28.0 28.0 32.0 41.0 41.0
Number of Major Intersections 27 27 27 50 50 50 50 50 50 50
Number of Traffic Signals and 62 62 62 192 192 192 221 221 221 221
Safety Lighting
Number of traffic signs 3,624 3,624 3,624 3,618 3,618 3,618 3,850 3,925 4,000 4,125
Number of street lights 208 208 208 190 190 190 190 190 190 190
Parks and Recreation:
Number of Parks 5 5 5 5 5 5 5 5 5 5
Total Acreage 13.0 13.0 13.0 16.0 16.0 16.0 30.6 30.6 30.6 30.6
Buildings:
Civic Center 1 1 1 1 1 1 1 1 1 1
Civic Center Annex 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 4 4 4 4 4 4 4 4 4 4
Source: City of Rancho Mirage
Fiscal Year
CITY OF RANCHO MIRAGE
Capital Asset Statistics
by Function
Last Ten Fiscal Years
124
FORMER REDEVELOPMENT AGENCY
LONG-TERM DEBT INFORMATION
125
City of Rancho Mirage, California
Former Redevelopment Agency Long-Term Debt Information
June 30, 2021
Long-term debt activity for the former redevelopment agency for the year ended June 30, 2021 was as follows:
Beginning Ending Due Within
Balance Additions Retirements Balance One Year
Tax allocation bonds payable
2003 A-1 subordinate lien tax allocation bonds 2,560,083$ -$ (139,852)$ 2,699,935$ (147,488)$
2003 A-T subordinate lien tax allocation bonds 855,000 - 70,000 785,000 75,000
2003 A-1 tax allocation bonds 3,561,568 - (200,585) 3,762,153 (211,893)
2003 A-T tax allocation bonds 2,905,000 - 155,000 2,750,000 165,000
2013 A Northside tax allocation refunding bonds 9,360,000 - 970,000 8,390,000 1,010,000
2013 A Whitewater tax allocation refunding bonds 2,690,000 - 750,000 1,940,000 790,000
2013 A Housing tax allocation refunding bonds 13,440,000 - 1,665,000 11,775,000 1,745,000
2016 A Northside tax allocation refunding bonds 22,810,000 - 935,000 21,875,000 985,000
2016 A Whitewater tax allocation refunding bonds 8,315,000 - 1,930,000 6,385,000 2,025,000
2017 A Northside tax allocation refunding bonds 12,905,000 - 625,000 12,280,000 655,000
Bond premiums/discounts 5,799,283 - 676,162 5,123,121 676,162
85,200,934$ -$ 7,435,725$ 77,765,209$ 7,766,781$
2003 A-1 Subordinate Lien Tax Allocation Bonds and 2003 A-T Subordinate Lien Tax Allocation Bonds
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 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. $1,040,000 5.76 percent term series
2003 A-T bonds are April 1, 2004. The bonds are secured by an irrevocable pledge of the surplus tax revenues of
the agency. As of June 30, 2019, the series 2003 reserve was held by the fiscal agent in the form of a surety bond.
On February 1, 2012 these Bonds were transferred from the Rancho Mirage Redevelopment Agency to the
Successor Agency and the balance outstanding is no longer included in the City’s Statement of Net Position.
The annual payment amounts required to retire the 2003A-1 bonds outstanding as of June 30, 2021 are as
follows:
Accreted Value
-$
-
-
3,340,000
Total accreted value 3,340,000
Less future accretion (1,479,367)
1,860,633$
2025
Fiscal Year Ended June 30,
2022
2023
2024
126
City of Rancho Mirage, California
Former Redevelopment Agency Long-Term Debt Information
June 30, 2021
The annual payment amounts required to retire the 2003A-T bonds outstanding as of June 30, 2021 are as
follows:
Interest Interest Principal Total
Due Due Total Due Annual
Fiscal Year Ended June 30,April 1 October 1 Interest April 1 Debt Service
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
61,344$ 61,344$ 122,688$ 785,000$ 907,688$
2003A-1 Tax Allocation Bonds and 2003A-T 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 and Series 2003A-T. 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") and paying the costs of issuing the Series 2003A Bonds.
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 $2,030,000.
The Series 2003A Bonds are secured by the pledged tax revenues of the Agency and from amounts on deposit in
the reserve account established under the Senior Indenture.
The 2003A Supplemental Indenture requires that amounts on deposit in bond reserve account, when added to
amount on deposit in the Senior Reserve Account established under the Senior Indenture equal the Reserve
Requirement which is the lesser of 10 percent of the bond proceeds of each series of bonds outstanding, 125
percent of Average Annual Debt Service or Maximum Annual debt service on all Series of Bonds. The Senior
Reserve Account has cash and debt service reserve surety bonds equal to or exceeding the Reserve Requirement
for all bonds outstanding including the Series 2003A. On February 1, 2012 these Bonds were transferred from
the Rancho Mirage Redevelopment Agency to the Successor Agency and the balance outstanding is no longer
included in the City’s Statement of Net Position.
127
City of Rancho Mirage, California
Former Redevelopment Agency Long-Term Debt Information
June 30, 2021
The annual payment amounts required to retire the 2003A-T tax allocation bonds outstanding as of June 30,
2021 are as follows:
Interest Interest Principal Total
Due Due Total Due Annual
Fiscal Year Ended June 30,April 1 October 1 Interest April 1 Debt Service
2022 80,215$ 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
575,409$ 575,408$ 1,150,817$ 2,750,000$ 3,900,817$
The annual payment amounts required to retire the 2003A-1 tax allocation bonds outstanding as of June 30,
2021 are as follows:
Accreted Value
-$
-
-
-
-
-
-
-
-
-
-
-
3,940,000
3,940,000
Total accreted value 7,880,000
Less future accretion (5,316,298)
2,563,702$
2035
Fiscal Year Ended June 30,
2022
2023
2024
2030
2031
2032
2033
2034
2025
2026
2027
2028
2029
128
City of Rancho Mirage, California
Former Redevelopment Agency Long-Term Debt Information
June 30, 2021
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.
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.
The 2006 A Whitewater Tax Allocation Bonds were refunded by the 2016A Whitewater Tax Allocation Bonds in
the FY 2016.
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 2008 A Subordinate Lien Tax Allocation Bonds were refunded by the 2017 A Northside tax allocation
refunding bonds in the FY 2017.
129
City of Rancho Mirage, California
Former Redevelopment Agency Long-Term Debt Information
June 30, 2021
2013A Tax Allocation Refunding Bonds- Whitewater, 2013A Subordinated Lien Tax Allocation Refunding
Bonds- Northside, and 2013A Tax Allocation Housing Refunding Bonds
On September 24th and 25th of 2013 the Successor Agency to the former Rancho Mirage Redevelopment
Agency sold $50,370,000 in tax allocation bonds and together with $22,709,339 in prior bond proceeds,
refunded and redeem $72,265,000 of the Agency’s outstanding Series 2001, 2002 and Series 2003 Bonds. The
refunding plan and bond issuance was reviewed and approved by the State Department of Finance and
represented the sixth, seventh and eight refunding bond issuances completed since the dissolution legislation,
AB X1 26 and AB 1484, was passed by the State Legislature eliminating redevelopment.
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 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 $37,210,063. All the bond debt service is paid by Redevelopment Property Tax Trust Fund (RPTTF)
Funds under the ROPS system.
2013A Tax Allocation Northside Refunding Bonds
Interest Interest Principal Total
Due Due Total Due Annual
Fiscal Year Ended June 30,April 1 October 1 Interest April 1 Debt Service
2022 200,294$ 200,294$ 400,588$ 1,010,000$ 1,410,588$
2023 175,044 175,044 350,088 1,055,000 1,405,088
2024 148,669 148,669 297,338 1,115,000 1,412,338
2025 120,794 120,794 241,588 560,000 801,588
2026 109,594 109,594 219,188 570,000 789,188
2027 97,481 97,481 194,963 590,000 784,963
2028 84,944 84,944 169,888 615,000 784,888
2029 71,875 71,875 143,750 535,000 678,750
2030 58,500 58,500 117,000 535,000 652,000
2031 45,125 45,125 90,250 575,000 665,250
2032 30,750 30,750 61,500 595,000 656,500
2033 15,875 15,875 31,750 635,000 666,750
1,158,944$ 1,158,944$ 2,317,888$ 8,390,000$ 10,707,888$
130
City of Rancho Mirage, California
Former Redevelopment Agency Long-Term Debt Information
June 30, 2021
2013A Subordinated Lien Tax Allocation Refunding Bonds- Whitewater
Interest Interest Principal Total
Due Due Total Due Annual
Fiscal Year Ended June 30,April 1 October 1 Interest April 1 Debt Service
2022 48,500$ 48,500$ 97,000$ 790,000$ 887,000$
2023 28,750 28,750 57,500 830,000 887,500
2024 8,000 8,000 16,000 320,000 336,000
85,250$ 85,250$ 170,500$ 1,940,000$ 2,110,500$
2013A Tax Allocation Refunding Bonds- Housing
Interest Interest Principal Total
Due Due Total Due Annual
Fiscal Year Ended June 30,April 1 October 1 Interest April 1 Debt Service
2022 283,613$ 283,613$ 567,225$ 1,745,000$ 2,312,225$
2023 239,988 239,988 479,975 1,835,000 2,314,975
2024 194,113 194,113 388,225 1,930,000 2,318,225
2025 145,863 145,863 291,725 580,000 871,725
2026 134,263 134,263 268,525 605,000 873,525
2027 122,163 122,163 244,325 635,000 879,325
2028 108,669 108,669 217,338 655,000 872,338
2029 94,750 94,750 189,500 685,000 874,500
2030 77,625 77,625 155,250 720,000 875,250
2031 59,625 59,625 119,250 755,000 874,250
2032 40,750 40,750 81,500 795,000 876,500
2033 20,875 20,875 41,750 835,000 876,750
1,522,294$ 1,522,294$ 3,044,588$ 11,775,000$ 14,819,588$
131
City of Rancho Mirage, California
Former Redevelopment Agency Long-Term Debt Information
June 30, 2021
2016A Tax Allocation Refunding Bonds- Northside and Whitewater, 2016A Subordinated Lien Tax Allocation
Refunding Bonds
On December 9, 2015, the Successor Agency sold $39,180,000 in Merged Redevelopment Project Tax Allocation
Bonds for Northside and Whitewater Sub Areas to refund and redeem $42,770,000 of the Agency’s outstanding
Whitewater and Northside Project Area Series 2006 and 2003AE bonds. The refunding plan and bond issuance
was reviewed and approved by the State Department of Finance on November 23, 2015.
The refunding plan consisted of two bond issuances, a $13,430,000 Merged Redevelopment Project Tax
Allocation Refunding Bond Whitewater Sub Area Series 2016A and a $25,750,000 Merged Redevelopment
Project Tax Allocation Refunding Bond Northside Sub Area 2016A. The Bonds together were sold at a net
premium of $4,547,896 generating additional funds for the refunding program.
The Agency completed the advance refunding to reduce its total debt service payments by $7,595,659 resulting
in an economic gain of $6,009,531.
All the bond debt service is paid by Redevelopment Property Tax Trust Fund (RPTTF) Funds under the ROPS
system.
2016 A Northside Tax Allocation Refunding Bonds
Interest Interest Principal Total
Due Due Total Due Annual
Fiscal Year Ended June 30,October 1 April 1 Interest April 1 Debt Service
2022 440,875$ 440,875$ 881,750$ 985,000$ 1,866,750$
2023 416,250 416,250 832,500 1,035,000 1,867,500
2024 390,375 390,375 780,750 1,085,000 1,865,750
2025 363,250 363,250 726,500 1,760,000 2,486,500
2026 319,250 319,250 638,500 1,845,000 2,483,500
2027 273,125 273,125 546,250 1,945,000 2,491,250
2028 224,500 224,500 449,000 2,035,000 2,484,000
2029 173,625 173,625 347,250 2,085,000 2,432,250
2030 142,350 142,350 284,700 2,175,000 2,459,700
2031 109,725 109,725 219,450 2,245,000 2,464,450
2032 76,050 76,050 152,100 2,305,000 2,457,100
2033 38,594 38,594 77,188 2,375,000 2,452,188
2,967,969$ 2,967,969$ 5,935,938$ 21,875,000$ 27,810,938$
132
City of Rancho Mirage, California
Former Redevelopment Agency Long-Term Debt Information
June 30, 2021
2016 A Whitewater Tax Allocation Refunding Bonds
Interest Interest Principal Total
Due Due Total Due Annual
Fiscal Year Ended June 30,October 1 April 1 Interest April 1 Debt Service
2022 159,625$ 159,625$ 319,250$ 2,025,000$ 2,344,250$
2023 109,000 109,000 218,000 2,130,000 2,348,000
2024 55,750 55,750 111,500 2,230,000 2,341,500
324,375$ 324,375$ 648,750$ 6,385,000$ 7,033,750$
2017A Tax Allocation Refunding Bonds- Northside
On October 5, 2017 the Successor Agency sold $14,100,000 in Merged Redevelopment Project Tax Allocation
Bonds for Northside Sub Area to refund and redeem $17,090,000 of the Successor Agency’s outstanding Tax
Allocation Bond Northside Series 2008A. The refunding plan and bond issuance was reviewed and approved by
the California Department of Finance on September 20, 2017. Total debt service, as a result of the refunding was
reduced by $5,552,525 resulting in an economic gain of $2,844,471.
All the bond debt service is paid by Redevelopment Property Tax Trust Fund (RPTTF) Funds under the ROPS
system.
2017A Northside Tax Allocation Refunding Bonds
Interest Interest Principal Total
Due Due Total Due Annual
Fiscal Year Ended June 30,October 1 April 1 Interest April 1 Debt Service
2022 250,556$ 250,556$ 501,112$ 655,000$ 1,156,112$
2023 237,456 237,456 474,912 680,000 1,154,912
2024 223,856 223,856 447,712 710,000 1,157,712
2025 206,106 206,106 412,212 740,000 1,152,212
2026 187,606 187,606 375,212 780,000 1,155,212
2027 168,106 168,106 336,212 820,000 1,156,212
2028 147,606 147,606 295,212 860,000 1,155,212
2029 126,106 126,106 252,212 905,000 1,157,212
2030 103,481 103,481 206,962 950,000 1,156,962
2031 87,450 87,450 174,900 975,000 1,149,900
2032 63,075 63,075 126,150 1,030,000 1,156,150
2033 47,625 47,625 95,250 1,060,000 1,155,250
2034 31,725 31,725 63,450 1,040,000 1,103,450
2035 16,128 16,128 32,256 1,075,000 1,107,256
1,896,882$ 1,896,882$ 3,793,764$ 12,280,000$ 16,073,764$