Comprehensive Annual Financial Report City Of

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Comprehensive Annual Financial Report City Of COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF PALM DESERT, CALIFORNIA For the Fiscal Year Ended JUNE 30, 2008 Prepared by the Finance Department City Treasurer/Director of Finance Paul S. Gibson Assistant Finance Director Jose Luis Espinoza, CPA Finance Staff (in alphabetical order by positions and names) Accounting Technician II Deputy City Treasurer Information Systems James Bounds Thomas Jeffrey Technician Accounting Technician II Director of Information Ray Santos Horacio Celaya Systems Management Analyst Accounting Technician II Doug Van Gelder Jenny Barnes Sharon Christiansen G.I.S. Coordinator Office Assistant Accounting Technician II Robert Riches Vedrana Spasojevic Diana Leal G.I.S. Technician Office Assistant I Accounting Technician II John Urkov Cherie Thompson Barbara Wright Information Systems Senior Financial Analyst Administrative Secretary Analyst Anthony Hernandez Niamh Ortega Clay von Helf Sr. Office Assistant Business License Technician Information Systems Claudia Jaime Rob Bishop Technician Troy Kulas CITY OF PALM DESERT TABLE OF CONTENTS JUNE 30, 2008 Page Number INTRODUCTORY SECTION Table of Contents i Letter of Transmittal vii GFOA Certificate of Achievement for Excellence in Financial Reporting xii List of Principal Officials xiii Organization Chart xiv FINANCIAL SECTION AUDITORS' REPORT Independent Auditors' Report 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Exhibit A - Statement of Net Assets 15 Exhibit B - Statement of Activities 16 Exhibit C - Balance Sheet - Governmental Funds 20 Exhibit D - Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 23 Exhibit E - Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 24 Exhibit F - Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 26 Exhibit G - Statement of Net Assets - Proprietary Funds 27 Exhibit H - Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 28 i CITY OF PALM DESERT TABLE OF CONTENTS (CONTINUED) JUNE 30, 2008 Page Number BASIC FINANCIAL STATEMENTS (CONTINUED): Exhibit I - Statement of Cash Flows - Proprietary Funds 29 Exhibit J - Statement of Fiduciary Assets and Liabilities – Agency Funds 31 Notes to Basic Financial Statements 33 REQUIRED SUPPLEMENTARY INFORMATION Schedule 1 - Budgetary Comparison Schedule - General Fund 107 Schedule 2 - Budgetary Comparison Schedule - Prop A Fire Tax Special Revenue Fund 108 SUPPLEMENTARY SCHEDULES General Fund: 111 Schedule 3 - Budgetary Comparison Schedule by Department - General Fund 112 Other Governmental Funds - Combining Statements: 117 Schedule 4 - Combining Balance Sheet - Other Governmental Funds 118 Schedule 5 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Other Governmental Funds 119 Other Governmental Funds - Other Special Revenue: 121 Schedule 6 - Combining Balance Sheet - Other Special Revenue Funds 124 Schedule 7 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Other Special Revenue Funds 128 Schedule 8 - Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Special Revenue Funds: A. Traffic Safety 132 B. Gas Tax 133 C. Housing Mitigation Fees 134 D. Community Development Block Grant 135 E. El Paseo Assessment District 136 F. City-Wide Business License 137 G. Landscape and Lighting Districts No. 1-17 138 ii CITY OF PALM DESERT TABLE OF CONTENTS (CONTINUED) JUNE 30, 2008 Page Number SUPPLEMENTARY SCHEDULES (CONTINUED) Other Governmental Funds - Other Debt Service: 139 Schedule 9 - Combining Balance Sheet - Other Debt Service Fund 140 Schedule 10 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Other Debt Service Fund 141 Other Governmental Funds - Other Capital Projects: 143 Schedule 11 - Combining Balance Sheet - Other Capital Projects Funds 144 Schedule 12 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Other Capital Projects Funds 148 Agency Funds: 153 Schedule 13 - Combining Statement of Assets and Liabilities - All Agency Funds 154 Schedule 14 - Combining Statement of Changes in Assets and Liabilities - All Agency Funds 155 STATISTICAL SECTION Description of Statistical Section 157 Financial Trends Net Assets by Component 158 Changes in Net Assets 159 Fund Balances of Governmental Funds 161 Changes in Fund Balances of Governmental Funds 162 Graphs - Changes in Fund Balances of Governmental Funds 163 Supplemental Historical General Fund Revenues 164 Supplemental Graph - Historical General Fund Revenues 165 Supplemental Historical General Fund Expenditures 166 Supplemental Graph - Historical General Fund Expenditures 167 Supplemental Historical General Revenue and Expenditures Per Capita 169 iii CITY OF PALM DESERT TABLE OF CONTENTS (CONTINUED) JUNE 30, 2008 Page Number STATISTICAL SECTION (CONTINUED) Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 170 Historical Net Assessed Taxable Values Citywide and Graph - Assessed Valuation Growth 171 Supplemental FY 2008 and 2007 Breakdown of Basic 1% Property Tax Rate Not in Redevelopment Project Area 172 Property Tax Rates Direct and Overlapping Property Tax Rates 173 Principal Property Taxpayers 174 Property Tax Levies and Collections 175 Supplemental Top 25 Sales Tax Generators and Graph - Historical Sales Tax Trends 176 Supplemental Taxable Sales by Category 177 Supplemental Principal Sales Tax Remitters 178 Debt Capacity Ratios of Outstanding Debt by Type 179 Ratios of General Bonded Debt Outstanding 180 Supplemental Special Assessment Information 181 Direct and Overlapping Government Activities Debt 182 Legal Debt Margin Information 183 Pledged-Revenue Coverage 184 Demographic and Economic Information Demographic and Economic Statistics 185 Principal Employers 186 Supplemental Miscellaneous Statistics 187 Operating Information Full-time Equivalent City Government Employee’s by Function/Program 188 Operating Indicators by Function/Program 189 Capital Asset Statistics by Function/Program 190 iv CITY OF PALM DESERT TABLE OF CONTENTS (CONTINUED) JUNE 30, 2008 Page Number SUPPLEMENTAL REDEVELOPMENT AGENCY STATISTICAL SECTION Redevelopment Agency Project Area Map 193 FY 2008 Top Twenty Property Taxpayers: Project Area No. 1 and 1982 Annex 194 Project Area No. 2 195 Project Area No. 3 196 Project Area No. 4 197 Project Area Statistics 198 Tax Allocation Bond Issue Information 199 FY 2007/2008 Breakdown of Basic 1% Property Tax Levy Rates 200 Historical Tax Increment Summary: Redevelopment Project Area No. 1 - Original 201 Redevelopment Project Area No. 1 - Amended 202 Redevelopment Project Area No. 2 203 Redevelopment Project Area No. 3 204 Redevelopment Project Area No. 4 205 Historical Net Assessed Taxable Values: Redevelopment Project Area No. 1 - Original 206 Change in Taxable Values: Redevelopment Project Area No. 1 - Original 207 Historical Net Assessed Taxable Values: Redevelopment Project Area No. 1 - Amended 208 Change in Taxable Values: Redevelopment Project Area No. 1 - Amended 209 Historical Net Assessed Taxable Values: Redevelopment Project Area No. 2 210 Change in Taxable Values: Redevelopment Project Area No. 2 211 Historical Net Assessed Taxable Values: Redevelopment Project Area No. 3 212 Change in Taxable Values: Redevelopment Project Area No. 3 213 Historical Net Assessed Taxable Values: Redevelopment Project Area No. 4 214 Change in Taxable Values: Redevelopment Project Area No. 4 215 v THIS PAGE INTENTIONALLY LEFT BLANK vi Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council November 17, 2008 CAFR Structure The format and content of this report is presented in three sections: Introductory Section, provides the reader with the organizational structure of the City, its services and operating environment. This section includes a title page, table of contents, a letter of transmittal, an organizational chart, a list of the City of Palm Desert’s elected and appointed officials, and the certificates of award from the Government Finance Officers Association of the United States and Canada. Financial Section, presents the City’s independent auditor’s report on the Basic Financial Statements, the Management’s Discussion and Analysis (MD&A), the Basic Financial Statements, the notes to the financial statements, the Required Supplementary Information (RSI), and the non-major supplementary schedules. Statistical Section, provides the reader with additional historical financial data and other information concerning the City. PROFILE OF THE CITY OF PALM DESERT Located in Riverside County in the geographical center of the Coachella Valley’s Palm Springs Desert Resorts area, Palm Desert was incorporated on November 26, 1973, as a General Law City. Fourteen years later on November 4, 1997, voters overwhelmingly approved Measure LL adopting a city charter. Under the provisions of the charter, the City of Palm Desert has full authority over its own municipal affairs including bidding and contracting procedures, regulation of parks, libraries, and other facilities, certain fees, imposition of taxes, municipal zoning, salaries of officials and employees, municipal utilities, and municipal election procedures. The City of Palm Desert operates under a Council-Manager form of Government. The City Council consists of five members elected by the residents of the City. Council terms are four years, elected in November
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