2006-2007 CAFR

Transcription

2006-2007 CAFR

CITY OF COACHELLA
COACHELLA, CALIFORNIA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
YEAR ENDED JUNE 30, 2007
Prepared By
Finance Department
CITY OF COACHELLA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended June 30, 2007
PREPARED BY THE FINANCE DEPARTMENT
City of Coachella
Comprehensive Annual Financial Report
TABLE OF CONTENTS
PAGE
I
II
INTRODUCTORY SECTION
Letter of Transmittal
Directory of Officials
Organizational Chart
i - iv
v
vi
FINANCIAL SECTION
Independent Auditors’ Report
1
Management’s Discussion and Analysis
2 - 11
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets
Statement of Activities
12
13 - 14
Fund Financial Statements:
Balance Sheet - Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Assets
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
Statement of Net Assets - Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Statement of Fiduciary Assets and Liabilities - Agency Funds
Notes to Financial Statements
Required Supplementary Information:
Notes to Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
General Fund
Housing Grants Special Revenue Fund
Development Impact Special Revenue Fund
Redevelopment Agency Special Revenue Fund
Supplementary Schedules:
Non-major Governmental Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
Redevelopment Agency Capital Project Fund
Redevelopment Agency Debt Service Fund
Supplemental Law Enforcement Services AB3229 Special Revenue Fund
State Gas Tax Special Revenue Fund
Air Quality Improvement Special Revenue Fund
Avenue 52 Bridge Special Revenue Fund
AVA Program Special Revenue Fund
15 - 16
17
18 - 19
20
21
22
23 - 24
25
26 - 56
57
58
59
60
61
62 - 63
64 - 67
68 - 71
72
73
74
75
76
77
78
City of Coachella
Comprehensive Annual Financial Report
TABLE OF CONTENTS - Continued
PAGE
Supplementary Schedules - Continued
SB 821 Sidewalk Improvements Special Revenue Fund
Local Transportation Special Revenue Fund
Police Asset Forfeiture Special Revenue Fund
Indian Grants SB 621 Special Revenue Fund
CDBG Economic Development Special Revenue Fund
Avenue 48 Special Revenue Fund
ECD Entitlement Special Revenue Fund
Police Grants Special Revenue Fund
Landscape and Lighting District Special Revenue Fund
Fire Protection District Special Revenue Fund
Education and Government Access Special Revenue Fund
Capital Projects Capital Project Fund
Capital Improvements Projects Capital Project Fund
General Leases Debt Service Fund
Agency Funds:
Combining Statement of Fiduciary Assets and Liabilities
Statement of Changes of Fiduciary Assets - Self Insured Dental Plan
Statement of Changes of Fiduciary Assets - General Deposits Fund
Statement of Changes of Fiduciary Assets - Public Schools Capital Facilities Fund
Statement of Changes of Fiduciary Assets - Flood Control Capital Facilities Fund
Statement of Changes of Fiduciary Assets - Employee Flex Plan Deposits Fund
Statement of Changes of Fiduciary Assets - JPA Waste Transfer Fund
III
STATISTICAL SECTION
Net Assets by Component
Change in Net Assets
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Schedule of Net Assessed Value
History of Assessed Net Taxable Property Values
Direct and Overlapping Property Tax Rates
Principal Property Taxpayers
Sales Tax by Economic Category and Segment
Property Tax Levies and Collection
Ratio of Outstanding Debt Type
Ratios of General Bonded Debt Outstanding
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Revenue Bond Coverage - Coachella Sanitary District
Revenue Bond Coverage - Coachella Water Authority
Demographic and Economic Statistics
Principal Employers
Five Year Staffing History (Full Time Equivalents)
Operating Indicators by Function
Capital Assets Statistics by Function
Coachella Parks Fiscal Year 2003
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94 - 95
96
97
98
99
100
101
102
103 - 104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
INTRODUCTORY SECTION
March 15, 2008
Citizens of the City of Coachella,
Honorable Mayor and Members of the City of Council
The Comprehensive Annual Financial Report (CAFR) of the City of Coachella for the fiscal
year ended June 30, 2007, is submitted herewith, this report was prepared by the City’s
Finance Department. For the fiscal year ended June 30, 2007, the City complied with the
new financial reporting model developed by the Governmental Accounting Standards
Board (GASB) Statement 34. In addition to the customary fund statements included in the
CAFR, Statement 34 requires that the City prepare government-wide financial statements,
which include a Statement of Net Assets, and a Statement of Activities. These statements
are prepared using the accrual basis of accounting, which is consistent with private business
accounting, in contrast to the modified basis of accounting that is used in accounting for
fund financial statements. In the financial section of this report, the reader is provided with
reconciliation statements that will take the reader from the Fund Financial Statement to the
Statements of Net Assets and Activities.
CAFR Structure
The format and content of this report comply with the principles and standards of
accounting and financial reporting adopted by the Governmental Accounting Standards
Board. It 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
Coachella’s elected and appointed officials.
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.
i
Management assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of internal
control that is has established for this purpose. Because the cost of internal control should
not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute,
assurance that the financial statements are free of any material misstatements.
It is the policy of the City of Coachella to have an annual audit performed by an
independent certified public accountant. The independent audit of the City’s financial
statements for fiscal year ended June 30, 2007, was conducted By Teaman, Ramirez &
Smith, Inc., CPA’s as appointed by the City Council. The auditor’s unqualified opinion on
the basic financial statements is included in the Financial Section of this report.
As part of the City’s annual audit engagement, the auditors review the city’s internal control
structure, as well as compliance with applicable laws and regulations. The results of the
City’s annual audit for fiscal year ended June 30, 2007, provided no instances of material
weaknesses in connection with the internal control structure of significant violations of
applicable laws and regulations.
As recipients of federal, state and county financial resources, the City of Coachella is
required to undergo an annual single audit. When applicable, information related to this
single audit, including the schedule of expenditures of federal awards, findings and
recommendations and auditor’s reports on the internal control structure and compliance
with applicable laws and regulations are included in a separately issued report.
Management’s Discussion and Analysis (MD&A) immediately follows the independent
auditor’s report and provides a narrative introduction, overview, and analysis of the basic
financial statements. MD&A complements this letter of transmittal and should be read in
conjunction with it.
PROFILE OF THE CITY OF COACHELLA
Coachella is a City in Riverside County, California; it is the easternmost City in the region
collectively known as the Coachella Valley (or the Palm Springs area). Located 28 miles
east of Palm Springs, 72 miles east of Riverside and 130 miles from Los Angeles.
Coachella’s official population was 22,724 at the 2000 census, but according to local
officials, the population might have doubled to 40,000 as of 2007 from one of the state’s
highest population growth rates. The predominantly agricultural City’s population density
of 15,500 per sq. mi. in only 3 square miles of developed land is one of California’s highest
outside an urban area. The City was originally founded as “Woodspur” in 1876. It was
incorporated on 1946 as “City of Coachella”, as a General Law City.
The City of Coachella operates under a council-manager format of government which
consists of a Mayor, Mayor Pro-Tem, three Councilmember’s and the City Manager. The
position of Mayor is independently elected every two years, while the position of Mayor
Pro-Tem is rotated among the other elected Councilmember’s
ii
Services are also provided to the City and its citizens by contract and by the direct services
of other government agencies and organizations, these services include police and fire
protection through the County of Riverside, library services through County of Riverside,
City promotion through the Coachella Chamber of Commerce, electricity service through
the Imperial Irrigation District, refuse collection through Waste Management Company,
public transit through Sunline Transit Agency, and cable service through Time Warner. The
City of Coachella also is financially accountable for all legally separate Redevelopment
Agency and Financing Authority. Additional information on these two legally separate
entities can be found in the notes to the financial statements.
Pursuant to City ordinance, the City Manager and Finance Director are responsible for the
preparation of the annual budget for City Council consideration prior to the start of the
fiscal year. The annual budget serves as the foundation for the City of Coachella’s financial
planning and control.
The City maintains budget controls to ensure compliance with legal provisions embodied in
the annual appropriated budget approved by the City Council. Activities of the General,
Special Revenue, Debt Service and Capital Projects Fund are included in the annual
appropriated budget. Budgetary amounts for Debt Service, Capital Projects, and Certain
Special Revenue Funds are adopted annually, however, budgets are considered to be longterm in nature.
The adopted budget for fiscal year 2006-2007 was prepared in accordance with accounting
principles generally accepted in the United States of America. As reflected in the statements
and schedules included in the financial section of this report, the City continues to meet its
responsibility for sound financial management.
LOCAL ECONOMY
According to the State of California Economic Development (EDD), as of June 2007, the
total workforce for the City of Coachella was 11,900 of which 10,700 were employed for a
10.4% unemployment rate.
Two new commercial developments’s finished in 2007; Grapefruit Center which include
Food 4 Less, Wells Fargo Bank, restaurants and retail stores. Jackson Square includes
Albertson’s, Bank of America, restaurants and retail stores.
LONG TERM FINANCIAL PLANNING
Each year the City embarks on a strategic planning process which begins in the spring with
a discussion of the City Council goals and ends with an adoption of the budget in June.
The documents that are generated in this strategic planning process include a presentation of
the financial achievements of the past fiscal year, a five-year cash flow projection for each
City, Redevelopment Agency, and Finance Authority Fund, and financial management
strategies and recommendation report for the coming fiscal year. Within the financial
iii
CITY OF COACHELLA
List of Principal Officials
as of June 30, 2007
City Council – Manager Form of Government
CITY COUNCIL
EDUARDO GARCIA
Mayor
JESSIE VILLARREAL
Mayor Pro Tem
RICHARD MACKNICKI
Council Member
STEVEN HERNANDEZ
Council Member
GILBERT RAMIREZ
Council Member
CITY ADMINISTRATION
JERRY SANTILLAN
City Manager
Assistant City Manager
Assistant City Manager-Community Services
City Attorney
City Treasurer
City Clerk
Public Works Director
Community Development Director
Interim Finance Director
Chief of Police
Fire Chief
Economic Development Manager
Linda Garza
Steve Brown
Carlos Campos
Yvonne Gaines
Isabel Castillon
Bill Gallegos
Carmen Manriquez
John Gerardi, CPA
Colleen Walker
Alex Gregg
Lorie Williams
v
FINANCIAL SECTION
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Coachella (City), we offer readers of these financial
statements this narrative overview and analysis of the financial activities of the City for
the fiscal year ended June 30, 2007. We encourage readers to consider the information
presented here in conjunction with additional information we have furnished in our letter
of transmittal. All amounts are expressed in millions of dollars unless otherwise stated.
Financial Highlights
The total assets of the City of Coachella exceeded its total liabilities at the close of the
fiscal year by $132.45 million. Of this amount, $105.88 million is invested in capital
assets, net of any related debt. In addition, $7.52 million restricted for debt service, and
$7.10 million is restricted for capital projects. This leaves a balance of $11.93 million as
unrestricted net assets.
The City’s total net assets increased by $81.70 million between FY 2006 and FY 2007;
the charges for services were decreased ($10.80 million), increases were realized in
operating grants and contributions ($2.69 million), and tax revenue ($5.24 million) .
As of the close of the fiscal year, the City of Coachella’s governmental funds reported
combined ending fund balances of $67.63 million, a decrease of $2.0 million in
comparison with the prior year. Approximately 70.0 percent of this total amount, $47.30
million, is available for spending at the City’s discretion (unreserved fund balance) per
individual fund requirements.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of
Coachella’s basic financial statements which include three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report contains other supplementary information in addition to the basic
financial statements themselves.
Government-wide financial statements: The government-wide financial statements are
designed to provide readers with a broad overview of the City’s finances in a manner
similar to a private-sector business.
The statement of net assets presents information on all of the City’s assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator as to whether the financial position
of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon
as the underlying event giving rise to the change occurs, regardless of the timing of
2
related cash flows. Thus, revenues and expenses are reported on this statement for some
items that will result in cash flows in future fiscal periods.
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). The governmental
activities of the City include general government, highways and streets, economic
development, public safety, and culture and recreation. The business-type activities of the
City include a Water Authority, Sanitary District, and a refuse collection operation.
Fund financial statements: A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or
objectives. The City, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All the funds
of the City can be divided into three categories: governmental funds, proprietary funds,
and fiduciary funds.
Governmental funds: Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and out-flows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating the City’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the governmentwide financial statements. By doing so, readers may better understand the long-term
impact of the City’s near-term financing decisions. Both the governmental fund balance
sheet and the governmental fund statement of revenues, expenditures and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities.
The City of Coachella maintains seven individual governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general fund,
street improvement fund, capital projects fund, and debt service fund, all of which are
considered to be major funds. Data from the three other funds are combined into a single,
aggregate presentation. Individual fund data for each of these non-major governmental
funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its general fund. A budgetary
comparison statement has been provided for the general fund to demonstrate compliance
with this budget.
3
Proprietary funds: The City of Coachella maintains one type of proprietary fund.
Enterprise funds are used to report on the same functions as presented in business-type
activities on the government-wide financial statements. The City uses enterprise funds to
account for its Water Authority, Sanitation District, and refuse collection operation.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail.
Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statement because the resources of those funds are not available to support the
City’s own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
Notes to the financial statements: The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and fund
financial statements.
Other information: In addition to the basic financial statements and accompanying notes,
this report also presents certain required supplementary information including individual
and combining fund schedules.
Government-Wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government’s
financial position. In the case of the City of Coachella, assets exceeded liabilities by
$132.45 million at the close of the fiscal year. By far the largest portion of the City’s net
assets, $105.88 million reflects its investment in capital assets (e.g. land, buildings,
machinery, and equipment); less any related debt used to acquire those assets and is still
outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City’s
investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
4
City of Coachella’s Net Assets
Current and restricted assets
Capital assets
Governmental
Activities
FY 2007
FY 2006
$ 80,745,728
$ 78,063,404
69,625,226
21,349,783
Business-Type
Activities
FY 2007
FY 2006
$ 17,131,541
$ 17,590,729
79,858,105
36,215,114
Total
FY 2007
FY 2006
$ 97,877,269
$ 95,654,133
149,483,331
57,564,897
Total Assets
150,370,954
99,413,187
96,989,646
53,805,843
247,360,600
153,219,030
Long-term debt outstanding
Other liabilities
55,016,039
12,041,459
53,998,550
8,705,673
43,931,200
3,917,158
33,824,839
5,938,142
98,947,239
15,958,617
87,823,389
14,643,815
67,057,498
62,704,223
47,848,358
39,762,981
114,905,856
102,467,204
69,625,226
4,782,696
21,094,484
47,977,284
36,259,222
9,855,031
15,907,813
14,656,111
105,884,448
14,637,727
37,002,297
62,633,395
8,905,534
(32,362,801)
3,027,035
(16,521,062)
11,932,569
$ 83,313,456
$ 36,708,967
$ 49,141,288
$ 14,042,862
$ 132,454,744
Total Liabilities
Net assets:
Invested in capital assets, net
of related debt
Restricted
Unrestricted
Total Net Assets
(48,883,863)
$ 50,751,829
The additional portion of the City’s net assets $14.63 million represents resources that are
subject to external restrictions on how they may be used.
The City’s net assets increased by $81.70 million or 162.0 percent, during the fiscal year.
The Net Increase is attributable to an increase in the City’s Infrastructure valuation due to
GASB 34 (such as roads, bridges, sewers, lighting systems and sidewalks), an increase in
operating grants and investment income, and a decrease in charges for services.
5
City of Coachella’s Changes in Net Assets
REVENUES:
Program Revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues:
Intergovernmental revenue
Property taxes
Taxes
Sales and Use Tax
Motor Vehicle In Lieu Tax
Franchise Taxes
Real Property Transfer Taxes
Other revenues
Interest and rental income
Gain in insurance reimbursement
Net transfers
TOTAL REVENUES
EXPENSES:
General government
Public safety
Public works
Parks & recreation
Payments to other agencies
Interest on long-term debt
Operating transfers in & out (net)
Operating expenses
Non-operating expenses
TOTAL EXPENSES
INCREASE (DECREASE) IN NET
ASSETS
BEGINNING NET ASSETS
RESTATEMENT ON NET ASSETS
ENDING NET ASSETS
Governmental
Activities
FY 2007
FY 2006
Business-Type
Activities
FY 2007
FY 2006
Total
FY 2007
FY 2006
$ 3,527,329
7,455,122
3,259,887
$ 11,260,751
4,760,299
68,274
$ 8,926,924
1,250,000
$ 11,998,585
-
$ 12,454,253
7,455,122.00
4,509,887.00
$ 23,259,336
4,760,299
68,274
14,572,407
989,493
8,859,051
4,923,454
81,007
-
38,055
-
989,493
8,897,106
4,923,454
3,567,195
232,435
428,743
182,560
318,283
2,850,294
-
359,950
986,665
-
908,020
-
400,831
-
14,653,414
3,567,195
232,435
428,743
182,560
318,283
3,758,314
-
359,950
1,387,496
-
(2,656,661)
33,737,594
(770,990)
31,436,947
2,656,661
13,822,612
770,990
13,208,461
47,560,206
44,645,408
12,956,139
8,185,639
6,382,829
297,478
2,591,955
30,414,040
9,640,173
4,898,669
2,195,931
162,680
1,130,745
1,355,416
19,383,614
8,834,345
8,834,345
6,388,056
912,131
7,300,187
12,956,139
8,185,639
6,382,829
297,478
2,591,955
8,834,345
39,248,385
9,640,173
4,898,669
2,195,931
162,680
1,130,745
1,355,416
6,388,056
912,131
26,683,801
3,323,554
36,708,966
43,280,936
12,053,333
24,655,631
-
4,988,267
14,042,862
30,110,159
5,908,274
8,134,588
-
8,311,821
50,751,828
73,391,095
17,961,607
32,790,219
-
$ 83,313,456
$ 36,708,964
$ 49,141,288
$ 14,042,862
$ 132,454,744
$ 50,751,826
Governmental activities: Governmental activities increased the City’s net assets by
$46.60 million thereby accounting for 1.26 percent of the total growth. Key elements of
this increase are as follows:
Charges for services decreased $7.73 million directly reflecting the slowdown in
residential development. Operating grants and contributions increased $2.69 million and
capital grants and contributions increased $3.19 million. Property taxes increased $5.71
million and other taxes and revenues decreased .54 million.
Total expenses from governmental activities increased $11.03 million during the fiscal
year.
6
Business-type Activities: Business-type activities increased net assets by $35.09 million
or 2.49 percent. Business-type revenues increased $.61 million or .04 percent reflecting
the slowdown in residential development. During the same period, expenses increased
$1.53 million which closely paralleled inflation.
Financial Analysis of the Government’s Funds
As noted earlier, the City of Coachella 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,
unrestricted 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 the end of the fiscal year, the City’s governmental funds reported combined ending
fund balances of $67.63 million, a decrease of $2.10 million in comparison with the prior
year. Approximately 69 percent of this total or $47.31 million constitutes unreserved fund
balance, which is available for spending at the City’s discretion. The remainder of fund
balance, $20.32 million, is reserved or designated to indicate that it is not available for
new spending because it has already been committed to liquidate contracts and purchase
orders of the prior period, pay debt service, or to pay for a variety of other restricted
purposes.
The general fund is the chief operating fund of the City. At the end of the current fiscal
year, unreserved, undesignated fund balance of the general fund was $9.11 million, while
the total fund balance reached $10.36 million. As a measure of the general fund’s
liquidity, it may be useful to compare both unreserved fund balance and total fund balance
to total fund expenditures. Unreserved fund balance represents 55.0 percent of total
general fund expenditures, while total fund balance represents 62.0 percent of the same
amount.
The 2006-07 fund balance of the City’s general fund is a net total of $10.36 million which
is a decrease of $.91 million from 2005-06. General fund revenues were $14.45 million
with expenses at $16.64 million which is a deficit of $2.19 million. The other financing
sources increased by $.55 million which brings the total of other financing sources to
$1.32 million.
The Housing Grant Fund, a special revenue fund, ended the year with a fund balance of
$1.72 million. The amount of ($.64 million) was the net change in fund balance and ($.14
million) was a prior period adjustment to record revenue in the previous year.
Capital Project Funds are a part of the City’s Redevelopment Agency (RDA). At the end
of the fiscal year the capital projects fund ended the year with a fund balance of $23.50
million.
7
Debt Service Funds are also part of the RDA and ended the year with a fund balance of
$5.08 million.
Proprietary funds: The City’s proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail. The proprietary
funds include the Coachella Water Authority, the Coachella Sanitary District, and the
City’s refuse fund.
Total net assets for proprietary funds finished the year at $49.14 million. The Water
Authority accounted for $28.80 million of this total with the Sanitary District and Refuse
accounting for $20.10 million and $.24 million, respectively.
The Coachella Water Authority’s net assets increased $26.80 million over fiscal year
2005-2006. During the year, the Authority had total revenues and other financing sources
of $3.96 million and expenses and other financing uses of $4.45 million. Therefore,
expenses/other financing sources exceeded revenue/other financing uses by $.48 million
for the fiscal year. In addition, the Authority’s total revenues/other financing uses
decreased $1.30 million or 24.0 percent under the previous fiscal year, while
expenses/other financing uses increased $1.03 million or 30.0 percent.
During the year the Authority’s capital assets increased $69.62 million due to GASB 34
infrastructure valuation and various water projects which include supply lines and water
wells.
The Coachella Sanitary District’s net assets increased $7.06 million or 5.41 percent over
fiscal year 2005-2006. The District had revenues and other financing sources of $6.14
million and expenses and other financing uses of $3.43 million. Revenue/other financing
sources exceeded expenses/other financing uses by $2.71 for the 2006-07 fiscal year.
Revenues/other financing sources decreased $.08 million or .01 percent while
expenses/other financing uses increased $.43 million or 1.43 percent.
The District’s investment in capital assets increased by $20.07 million due to GASB 34
infrastructure valuation and includes the expansion of the sewer treatment plant. In
addition, the District’s net assets restricted for capital projects increased by $.18 million.
Long-term liabilities decreased by $.12 million due to the absence of new debt
obligations. In 2006 the District entered into a revolving fund loan agreement of $23.66
million with the State of California – State Water Resources Control Board with the first
phase of $10.74 million to pay for various improvements to the wastewater system. In
2007 the second phase of the revolving fund loan was $10.20 million which reduced the
original loan amount by $2.83 million which brings the total amount outstanding to
$20.93 million with a 2.3 percent interest rate.
The Coachella Refuse Fund’s net assets increased $.10 million or 1.71 percent over fiscal
year 2005-2006. During the year, the fund had revenues of $1.06 million and expenses of
8
$.96 million. Revenues exceeded expenses as reported by the fund by $.10 million for the
fiscal year. The funds revenues increased $.11 million or .11 percent from the prior year
while expenses increased $ .07 million or .07 percent.
Capital Asset and Debt Administration
Capital assets: The City’s investment in capital assets for its governmental and businesstype activities at June 30, 2007, amounts to $149.48 million (net of accumulated
depreciation). The City invests in a broad range of capital assets including land, streets,
bridges, drainage systems, traffic lights, parks, buildings, art work, vehicles and
equipment. This amount represents a net increase which includes additions, deletions and
GASB 34 infrastructure valuations of $91.92 million or 156.0 percent over the previous
year.
CITY OF COACHELLA’S CAPITAL ASSETS
(Net of depreciation)
Land
Construction in progress
Buildings and improvements
Improvements other than buildings
Equipment
Infrastructure
Furniture
Governmental
Activities
FY 2007
FY 2006
$
885,536
$
231,819
2,853,759
1,737,042
1,873,042
1,575,238
1,441,667
62,569,913
17,798,122
3,738
5,133
Business Type
Activities
FY 2007
FY 2006
$
649,936
$
649,936
28,673,607
23,557,833
312,664
329,672
6,692,607
6,360,746
4,985,066
43,861,152
-
Total
FY 2007
FY 2006
$ 1,535,472
$
881,755
31,527,366
23,557,833
2,049,706
2,202,714
6,692,607
7,935,984
6,426,733
106,431,065
17,798,122
3,738
5,133
Totals
$ 69,625,226
$ 79,858,105
$ 149,483,330
$ 21,349,783
$ 36,215,114
$ 57,564,897
A highlight of the major capital asset events during the current fiscal year included the
following:
•
•
Infrastructure - $83,525,794
Sanitary Plant Expansion Project - $7,969,533
9
CITY OF COACHELLA’S LONG-TERM DEBT
Governmental
Business Type
Activities
2007
Compensated absences
Notes payable
$
773,973
-
Contracts and leases payable
Revenue bonds and notes
Totals
Activities
2006
$
2007
560,355
-
$
Total
2006
332,317
20,934,609
-
$
2007
-
$ 1,106,290
-
20,934,609
-
2006
$
560,355
-
467,066
255,299
467,066
255,299
53,775,000
53,182,896
22,664,274
33,824,839
76,439,274
87,007,735
$ 55,016,039
$ 53,998,550
$ 43,931,200
$ 33,824,839
$ 98,947,239
$ 87,823,389
Long-term debt: At the end of the current fiscal year, the City’s governmental activities
had $55 million in bonds, notes payable, contracts, and compensated absences compared
to $54 million last year, an increase of $1 million, or .18 percent.
Business type activities had $43.93 million in bonds, notes payable, contracts and
compensated absences compared to $33.82 million last year, an increase of $10.11 million
or .29 percent.
10
Economic Factors and Next Year Budget
The impact of the fiscal year 2005-06 and fiscal year 2006-07 budgets on the City’s
financial statements will depend on a variety of factors including the state legislature’s
actions, the pace of infrastructure expansion in the City and the continuing growth in the
Coachella Valley.
State Budget Impact: The 2006-07 Overview of the Governor’s Budget projected the
State will be able to fund more than a current-law budget and still maintain fiscal balance.
However the State still faces a longer-term structural gap between revenues and
expenditures. The Overview of the Governor’s Budget plan moves the State in the wrong
direction; the State’s current structural budget shortfall should focus more on paying down
existing debt before making expansive new commitments.
Sales Tax: The City has experienced significant growth in sales tax revenues over the last
few years and the future continues to look very encouraging. Fiscal years 2006 and 2007
produced 29.7 and 8.8 percent year-to-year increases respectively. The largest increases
were realized in the food products and building materials-retail and a decrease in service
stations and building materials-wholesale. Transportation and construction will need to be
monitored closely as they have been impacted greatly by fluctuations in the overall
economy. The City should see a continued increase with food products and general retail
as new commercial centers continue to be developed.
Revenue Outlook: Preliminary fiscal year 2007-08 projections are $19 million providing
the City with a balanced budget. Taxes ($10 million) and charges for services ($1.4
million) are expected to be the major contributors in the fiscal year. The City is projecting
a slowdown in residential construction; however there should be an offsetting increase in
commercial development construction.
Expenditure Outlook: Fiscal year 2007-08 will see general fund expenditures of $19
million. The Public Safety budget continues to dominate with a police contract of over
$7.4 million and a fire protection budget of $2.7 million. Beginning in 2006-07
assessments from the public safety community facilities district (CFD) begin to offset
some of the burden of providing police and fire services to a growing population.
Growth also means the City is hiring more people and providing them with benefits. For
fiscal year 2007-08 the City added 4.50 new positions. Payroll expense is projected to
grow to $4.7 million a 23% increase over actual 2006-07 payroll expense.
Requests for information
This financial report is designed to provide our citizens, taxpayers, customers, and
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 Coachella, 1515 6th Street, Coachella California 92236.
11
BASIC FINANCIAL STATEMENTS
City of Coachella
June 30, 2007
Governmental
Activities
ASSETS
Cash and Investments
Restricted Cash and Investments
Accounts Receivable
Interest Receivable
Taxes Receivable
Loans Receivable
Internal Balances
Prepaid Expenses and Deposits
Due from Other Governments
Land Held for Resale
Unamortized Bond Issuance Cost
Capital Assets, Net of Depreciation
$
Total Assets
29,612,827
34,108,716
3,283,750
347,051
811,690
4,899,909
3,331,754
1,488,229
18,348
1,038,348
1,805,106
69,625,226
$
10,425,253
8,011,418
1,049,182
49,095
Total
$
(3,331,754)
119,293
40,038,080
42,120,134
4,332,932
396,146
811,690
4,899,909
809,054
79,858,105
1,607,522
18,348
1,038,348
2,614,160
149,483,331
150,370,954
96,989,646
247,360,600
3,422,694
721,816
59,181
7,102,915
734,853
3,330,018
335,785
251,355
6,752,712
1,057,601
59,181
7,102,915
986,208
910,619
54,105,420
1,344,623
42,586,577
2,255,242
96,691,997
67,057,498
47,848,358
114,905,856
69,625,226
36,259,222
105,884,448
4,782,696
8,905,534
7,109,060
2,745,971
3,027,035
7,109,060
7,528,667
11,932,569
LIABILITIES
Accounts Payable and Accrued Liabilities
Deposits and Other Liabilities
Due to Other Governments
Deferred Revenue
Interest Payable
Long-term Liabilities:
Due Within One Year
Due in More than One Year
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted for:
Construction
Debt Service
Unrestricted
Total Net Assets
Business-type
Activities
$
83,313,456
The accompanying notes are an integral part of this statement.
12
$
49,141,288
$
132,454,744
City of Coachella
Statement of Activities
Functions/Programs
Governmental Activities:
General Government
Public Safety
Public Works
Parks and Recreation
Interest on Long-term Debt
Total Governmental Activities
Business-type Activities:
Water Utility
Sewer Utility
Refuse
Total Business-type Activities
Total Primary Government
Charges
for
Services
Expenses
$ 12,956,139
8,185,639
6,382,829
297,478
2,591,955
$
1,485,666
542,613
1,499,050
30,414,040
3,527,329
4,447,614
3,426,641
960,090
3,691,041
4,175,416
1,060,467
8,834,345
8,926,924
$ 39,248,385
$ 12,454,253
Program Revenues
Operating
Grants and
Contributions
$
4,137,400
497,799
2,793,528
26,395
Capital
Grants and
Contributions
$
7,455,122
3,259,887
1,250,000
0
$
7,455,122
1,250,000
$
General Revenues:
Property Taxes
Sales and Use Tax
Motor Vehicle In Lieu Tax
Franchise Taxes
Real Property Transfer Taxes
Investment Income
Other Revenue
Transfers
Total General Revenues and Transfers
Net Assets, Beginning of Year,
As Previously Reported
Prior Period Adjustments
Net Assets, Beginning of Year, Restated
Net Assets, End of Year
13
443,936
839,295
277,871
1,698,785
4,509,887
Net (Expense) Revenue and Changes in Net Assets
Governmental
Activites
Business-type
Activities
$
$
(6,889,137)
(6,305,932)
(1,812,380)
1,427,702
(2,591,955)
(16,171,702)
Total
$
(6,889,137)
(6,305,932)
(1,812,380)
1,427,702
(2,591,955)
0
(16,171,702)
(756,573)
1,998,775
100,377
(756,573)
1,998,775
100,377
0
1,342,579
1,342,579
(16,171,702)
1,342,579
(14,829,123)
14,572,407
3,567,195
232,435
428,743
182,560
2,850,294
318,283
(2,656,661)
81,007
2,656,661
14,653,414
3,567,195
232,435
428,743
182,560
3,758,314
318,283
0
19,495,256
3,645,688
23,140,944
3,323,554
4,988,267
8,311,821
36,708,966
14,042,862
50,751,828
43,280,936
30,110,159
73,391,095
79,989,902
44,153,021
124,142,923
$ 83,313,456
$ 49,141,288
$ 132,454,744
908,020
14
City of Coachella
Balance Sheet
Governmental Funds
June 30, 2007
Special Revenue
General
Fund
ASSETS
Accounts Receivable
Interest Receivable
Taxes Receivable
Loans Receivable
Due from Other Funds
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Due to Other Governments
Due to Other Funds
Deferred Revenue
$
$
42,423
49,736
536,498
1,648,416
Development
Impact Fund
$
1,300,000
8,197
9,253,423
39,980
3,748,429
7,052,210
1,485,446
15,716
$
13,443,030
$
6,705,042
$
9,293,403
$
2,107,884
721,046
$
7,150
$
4,000
251,383
4,971,070
Total Liabilities
3,080,313
Fund Balances:
Reserved:
Encumbrances
Loans Receivable
Debt Service
Unreserved:
General Fund, Undesignated
Special Revenue Funds, Designated for
Specific Programs
Capital Project Funds, Designated for
Specific Projects
4,978,220
4,000
1,251,604
3,748,429
9,111,113
Total Fund Balances
Total Liabilities and Fund Balances
4,261,001
Housing
Grants
10,362,717
$
15
13,443,030
$
(2,021,607)
9,289,403
1,726,822
9,289,403
6,705,042
$
9,293,403
Special Revenue
Capital Project
Debt Service
Redevelopment
Agency
Redevelopment
Agency
Redevelopment
Agency
$
$
$
1,462,219
9,459,892
177,023
2,571,395
19,988,426
18,623
11,504
1,104,669
251,383
1,190
46,811
21,226
1,017,122
523,614
4,660,398
Other
Governmental
Funds
$
9,892,759
Total
Governmental
Funds
$
29,612,827
34,108,716
3,283,750
347,051
811,690
4,899,909
7,303,593
1,488,229
18,348
1,038,348
1,922,704
57,251
3,360
275,192
1,593
2,632
$
12,477,602
$
23,655,474
$
7,836
$
53,231
$
5,462,564
$
629,183
107,366
104,741
59,181
634,725
744,385
157,972
693,906
1,104,669
21,226
163,024
46,811
1,017,122
$
11,875,346
$
82,912,461
$
1,242,593
770
$
2,351,807
2,024,479
3,422,694
721,816
59,181
3,971,839
7,102,915
5,619,649
15,278,445
8,188,631
9,603,259
4,899,909
1,038,348
4,782,696
4,768,658
14,038
9,111,113
10,607,322
22,270,545
11,733,217
$
12,477,602
23,497,502
$
23,655,474
4,768,658
$
5,462,564
16
$
(248,218)
17,626,900
(1,698,754)
20,571,791
6,255,697
67,634,016
11,875,346
$
82,912,461
City of Coachella
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
June 30, 2007
$
67,634,016
Amounts reported for Governmental Activities in the Statement of Net
Assets are different because:
Assets that are not due and payable in the current period are not reported in the funds.
Unamortized Bond Issuance Costs
1,805,106
Capital assets, net of depreciation, have not been included as financial
resources in governmental fund activity.
69,625,226
Long-term liabilities are not due and payable in the current period and are not
reported in the funds.
Interest Payable on Long-term Liabilities
Long-term Liabilities
(734,853)
(55,016,039)
Net Assets of Governmental Activities
$
17
83,313,456
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City of Coachella
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Special Revenue
General
Fund
REVENUES
Taxes
Licenses, Permits and Fees
Charges for Services
Fines, Forfeitures and Penalties
Intergovernmental Revenue
Developer Fees
Special Assessments
Contributions
Investment Income
Other Revenue
$
10,445,414
2,045,347
1,043,334
307,621
106,126
Development
Impact Fund
$
$
557,663
2,677,110
Total Revenues
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Capital Outlay
Debt Service:
Pass-through Agreements
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
332,369
168,795
61,055
269,873
14,449,006
618,718
2,946,983
5,738,377
5,997,800
4,430,399
297,478
173,225
1,250,326
2,450
16,637,279
1,258,773
8,447
(2,188,273)
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
2,642,817
(1,321,680)
Total Other Financing Sources (Uses)
1,321,137
Net Change in Fund Balances
0
18
10,362,717
1,844,533
2,515,887
7,444,870
(149,010)
11,229,853
$
(1,100,000)
(640,055)
(42,328)
Fund Balances, Beginning of Year, Restated
2,944,533
3,125,508
(4,225,508)
11,272,181
2,450
(640,055)
(867,136)
Fund Balances, Beginning of Year, As Previously Reported
Fund Balances, End of Year
Housing
Grants
2,366,877
$
1,726,822
7,444,870
$
9,289,403
Special Revenue
Capital Project
Debt Service
Redevelopment
Agency
Redevelopment
Agency
Redevelopment
Agency
$
$
$
1,633,345
6,533,382
Other
Governmental
Funds
$
371,199
Total
Governmental
Funds
$
64,510
5,549,597
485,332
65,877
1,217,544
6,234
258,710
681
1,588,582
171,421
225,411
76,696
18,983,340
2,045,347
1,174,361
307,621
6,277,896
2,677,110
1,588,582
171,421
2,850,294
318,283
2,184,554
1,288,288
6,792,773
8,113,933
36,394,255
1,294,196
453,055
1,226,330
449,259
2,140,884
453,749
95,000
412,579
6,191,447
10,413,993
8,138,684
4,884,148
297,478
6,880,698
910,690
1,825,000
2,341,595
135,906
15,832
910,690
1,960,906
2,357,427
9,387,077
35,844,024
131,027
1,389,196
865,634
6,303,615
795,358
422,654
489,158
(1,273,144)
(174,343)
1,210,924
(6,157,752)
418,282
(879,855)
6,885,684
(4,180,738)
14,283,215
(16,939,876)
(174,343)
(4,946,828)
(461,573)
2,704,946
(2,656,661)
621,015
(4,524,174)
27,585
1,431,802
(2,106,430)
4,735,946
4,317,349
69,638,498
5,127
506,546
101,948
4,741,073
4,823,895
69,740,446
11,250,625
28,101,640
(138,423)
(79,964)
11,112,202
$
550,231
11,733,217
28,021,676
$
23,497,502
$
4,768,658
19
$
6,255,697
$
67,634,016
City of Coachella
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
Net Change in Fund Balances - Total Governmental Funds
$
(2,106,430)
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Governmental funds report capital outlay as an expenditure in the full amount as current
financial resources are used. However, in the Statement of Activities the cost of
these assets is allocated over the estimated useful life as depreciation expense.
Capital Outlay
Depreciation
6,713,342
(2,382,530)
Revenues in the Statement of Activities that do not provide current financial resources
are not reported in the funds.
Governmental funds report activity of long-term liabilities as revenues and expenditures,
but they are included as increases and reductions on the long-term liabilities in
the Statement of Net Assets.
Long-term Debt Principal Payments
2,102,063
Governmental funds report proceeds of long-term debt as revenue, but proceeds
are included as an increase in long-term liabilities in the Statement of Net Assets.
Proceeds from Long-term Debt
(702,448)
Governmental funds report bond issuance costs as an expense in the full amount
as current financial resources are used. However, in the Statement of Activities
the cost is amortized over the life of the debt.
(65,915)
Some expenses reported in the Statement of Activities do not require the use
of current financial resources and are not reported as governmental
fund expenditures.
(234,528)
$
Change in Net Assets of Governmental Activities
20
3,323,554
City of Coachella
Proprietary Funds
June 30, 2007
Business-type Activities
Enterprise Funds
Water
Sanitary
Authority
District
Refuse
ASSETS
Current Assets:
Accounts Receivable
Interest Receivable
$ 5,130,525
30,633
320,641
28,026
$ 5,023,509
7,980,785
590,030
19,727
5,509,825
13,614,051
5,755,765
48,342,028
(17,679,437)
576,268
63,917
23,567,778
31,228,630
(11,356,659)
232,786
55,376
37,058,541
43,727,911
0
80,786,452
42,568,366
57,341,962
411,072
100,321,400
497,385
335,785
2,662,866
169,767
3,330,018
335,785
3,331,754
251,355
83,079
427,681
833,863
169,767
8,593,535
Total Current Assets
Noncurrent Assets:
Capital Assets Not Being Depreciated
Capital Assets Being Depreciated
Less: Accumulated Depreciation
Total Noncurrent Assets
Total Assets
LIABILITIES
Current Liabilities:
Deposits Payable
Due to Other Funds
Interest Payable
Compensated Absences - Current Portion
Bonds Payable - Current Portion
Loans Payable - Current Portion
$
Totals
271,219
138,511
1,342
$ 10,425,253
8,011,418
1,049,182
49,095
411,072
19,534,948
29,323,543
79,570,658
(29,036,096)
809,054
119,293
190,638
53,080
265,000
3,331,754
60,717
29,999
162,681
833,863
Total Current Liabilities
1,341,888
7,081,880
Noncurrent Liabilities:
Compensated Absences - Less Current Portion
Bonds Payable - Less Current Portion
Loans Payable - Less Current Portion
159,241
12,270,769
89,997
9,965,824
20,100,746
Total Noncurrent Liabilities
12,430,010
30,156,567
0
42,586,577
Total Liabilities
13,771,898
37,238,447
169,767
51,180,112
23,882,587
3,240,373
1,673,508
12,376,635
3,868,687
2,745,971
1,112,222
241,305
36,259,222
7,109,060
2,745,971
3,027,035
$ 28,796,468
$ 20,103,515
241,305
$ 49,141,288
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted for Construction
Restricted for Debt Service
Unrestricted
Total Net Assets
21
249,238
22,236,593
20,100,746
$
City of Coachella
Statement of Revenues, Expenses, and Changes in Net Assets
Proprietary Funds
Enterprise Funds
Water
Sanitary
Authority
District
Refuse
Totals
OPERATING REVENUES
Connection Charges
Other Revenue
$ 2,816,963
865,981
8,097
$ 3,213,814
809,945
151,657
$ 1,052,230
8,237
$ 7,083,007
1,675,926
167,991
Total Operating Revenue
3,691,041
4,175,416
1,060,467
8,926,924
OPERATING EXPENSES
Salaries and Benefits
Administrative and General
Professional Services
Materials and Supplies
Repairs and Maintenance
Utilities
Depreciation and Amortization
919,140
11,468
705,862
351,954
190,939
695,672
1,008,957
903,369
30,433
693,062
173,362
47,930
320,944
739,779
Total Operating Expenses
3,883,992
2,908,879
960,090
7,752,961
1,266,537
100,377
1,173,963
Operating Income (Loss)
(192,951)
960,090
1,822,509
41,901
2,359,014
525,316
238,869
1,016,616
1,748,736
NONOPERATING REVENUES (EXPENSES)
Property Taxes
Investment Income
Interest Expense and Fiscal Charges
Grant Proceeds
Other Non-operating Expenses
274,636
(563,622)
Total Nonoperating Revenues (Expenses)
(288,986)
1,446,629
0
1,157,643
(481,937)
2,713,166
100,377
2,331,606
Income (Loss) Before Capital Contributions
and Transfers
Transfers In
Transfers Out
Total Net Assets, Beginning of Year,
Total Net Assets, End of Year
3,428,395
(634,558)
81,007
633,384
(453,188)
1,250,000
(64,574)
81,007
908,020
(1,016,810)
1,250,000
(64,574)
3,428,395
(771,734)
(137,176)
2,311,900
2,575,990
100,377
4,988,267
2,041,652
11,860,282
140,928
14,042,862
24,442,916
5,667,243
$ 28,796,468
$ 20,103,515
22
30,110,159
$
241,305
$49,141,288
City of Coachella
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2007
Enterprise Funds
Water
Sanitary
Authority
District
Refuse
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash Received from Customers
Cash Payments to Suppliers
Cash Payments to Employees for Services
Net Cash Provided (Used) by
Operating Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Property Taxes
Advances from the City
Transfer to Other Funds
Other Non-operating Income
Net Cash Provided (Used) by Noncapital
Financing Activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal Paid on Long-Term Debt
Interest Paid on Long-Term Debt
Acquistion and Construction of Capital Assets
Proceeds from Long-Term Debt
Transfer from Other Funds
Net Cash Provided (Used) by
Capital and Related Financing Activities
$ 3,847,081
(1,520,449)
(895,347)
1,431,285
(634,558)
(634,558)
(273,684)
(565,788)
(5,508,367)
$ 4,057,444
(3,061,141)
(841,825)
Totals
$ 1,048,194
(955,523)
154,478
92,671
81,007
3,331,754
(137,176)
(64,574)
1,678,434
81,007
3,331,754
(771,734)
(64,574)
3,211,011
0
(155,573)
(580,869)
(8,129,903)
10,192,812
2,576,453
(429,257)
(1,146,657)
(13,638,270)
10,192,812
3,428,395
3,428,395
(2,919,444)
$ 8,952,719
(5,537,113)
(1,737,172)
1,326,467
0
(1,592,977)
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on Investments
299,189
627,040
(883)
925,346
Net Cash Provided (Used) from
Investing Activities
299,189
627,040
(883)
925,346
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents - Beginning of the Year
Cash and Cash Equivalents - End of the Year
(1,823,528)
5,318,996
91,788
3,587,256
6,984,686
7,685,298
179,431
14,849,415
$ 5,161,158
$ 13,004,294
271,219
$ 18,436,671
23
$
City of Coachella
Statement of Cash Flows
Proprietary Funds - Continued
For the Year Ended June 30, 2007
Enterprise Funds
Water
Sanitary
Authority
District
Refuse
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating Income
$ (192,951)
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation and Amortization
1,008,957
Prior Period Adjustment
(284,357)
Changes in Assets and Liabilities:
Decrease (Increase) in Accounts Receivable
75,088
Decrease (Increase) in PERS Reserve
21,305
Decrease (Increase) in Due from Other Funds
614,308
Increase (Decrease) in Accounts Payable
409,049
Increase (Decrease) in Accrued Payroll
2,488
Increase (Decrease) in Deposits Payable
(248,999)
Increase (Decrease) in Compensated
Absences Payable
26,397
TOTAL CASH PROVIDED BY
OPERATING ACTIVITIES
$ 1,431,285
24
$ 1,266,537
$
100,377
739,779
(67,898)
(12,273)
18,457
(1,827,396)
43,087
4,567
31,986
154,478
$ 1,173,963
1,748,736
(352,255)
(50,074)
$
Totals
12,741
21,305
632,765
(1,413,780)
45,575
(248,999)
58,383
$
92,671
$ 1,678,434
City of Coachella
Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2007
ASSETS
Cash and Investments with Fiscal Agent
Interest Receivable
Other Receivables
Total Assets
LIABILITIES
Employee Contribution
Pass-through Payable
Claims Payable
Deposits Payable
Total Liabilities
25
$
1,942,276
19,114
3,350
130,278
$
2,095,018
$
34,536
892,630
6,922
1,160,930
$
2,095,018
City of Coachella
DESCRIPTION
NOTE
PAGE
1
Reporting Entity and Summary of Significant Accounting Policies
27 - 37
2
37 - 41
3
Loans Receivable
4
Capital Assets
42 - 43
5
44 - 48
6
Compensated Absences
48
7
Defeased Revenue Bonds
49
8
Inter-Fund Receivables, Payables and Transfers
49
9
Fund Balance Reserves
10
Other Required Individual Fund Disclosures
11
City Employees’ Retirement Plan (Defined Benefit Pension Plan)
52 - 53
12
Risk Management
53 - 54
13
Deferred Compensation Plan
54
14
Commitments and Contingencies
54
15
42
50 - 51
51
54 - 56
26
City of Coachella
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Description of the Reporting Entity
The City of Coachella (the “City”) was incorporated under the general laws of the State of California as a General Law
City. The City operates under a Council-Manager form of government, and provides the following services: general
administrative services, public safety services, public works, parks and recreation, planning, community development,
fire protection, law enforcement services, water, sanitation and sewer services.
The financial statements of the City of Coachella include the financial activities of the City, the Coachella
Redevelopment Agency, the Coachella Water Authority, the Coachella Sanitary District, the Coachella Fire Protection
District, the Coachella Financing Authority, the Coachella Industrial Development Authority and the Coachella
Educational and Governmental Access Channel Corporation. In accordance with GASB Statement No. 14, the basic
criteria for including an agency, institution, authority or other organization in a governmental unit's financial reporting
entity is financial accountability. Financial accountability includes, but is not limited to 1) selection of the governing
body, 2) imposition of will, 3) ability to provide a financial benefit to or impose financial burden on and 4) fiscal
dependency.
There may, however, be factors other than financial accountability that are so significant that exclusion of a particular
agency from a reporting entity's financial statements would be misleading. These other factors include scope of public
service and special financing relationships.
Based upon the application of these criteria, an agency, institution or authority, may be included as a component unit in
the primary government's financial statements. Blended component units, although legally separate entities, are, in
substance, part of the government's operations and so data from these units are combined with data of the primary
government. A discretely presented component unit, on the other hand, is reported in a separate column in the
combined financial statements to emphasize it is legally separate from the government. There are no discretely
presented component units in these financial statements. Each blended component unit presented has a June 30 year
end. The following is a brief review of each component unit included in the primary government's reporting entity.
Coachella Redevelopment Agency - The Coachella Redevelopment Agency (the Agency) was established pursuant to
the State of California Health and Safety Code, Section 33000 entitled “Community Redevelopment Law”. The
purpose of the Agency is to prepare and execute plans for the improvement, rehabilitation and redevelopment of
blighted areas within the limits of the City of Coachella. The City provides management assistance to the Agency, and
the members of the City Council also act as the governing body of the Agency. The Agency’s activities are blended
with those of the City in these financial statements and are reported as a special revenue fund, a debt service fund, and a
capital project fund.
Coachella Sanitary District - The Coachella Sanitary District (the District) was created to provide sanitation and sewage
treatment services to the City of Coachella. The City provides management assistance to the District and the members
of the City Council also act as the governing body of the District. The District’s activities are blended with those of the
City in these financial statements and are reported as a proprietary fund.
27
City of Coachella
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
A) Description of the Reporting Entity - Continued
Coachella Water Authority - The Coachella Water Authority (the Authority) was formed on July 1, 2003, under a joint
powers agreement. The City of Coachella owns the water enterprise and leases it to the water authority on a 55 year
lease. The purpose of the water authority is to provide water service to the citizens of Coachella as well as commercial
and agricultural consumers. The Authority’s activities are blended with those of the City in these financial statements
and are reported as a proprietary fund.
Coachella Fire Protection District - The Coachella Fire Protection District (the Fire District) was created to provide fire
provides fire protection services to the residents of the City of Coachella. The City provides management assistance to
the District and the members of the City Council also act as the governing body of the District. The District’s activities
are blended with those of the City in these financial statements and are reported as a special revenue fund.
Coachella Financing Authority - The Coachella Financing Authority (the Authority) was formed to issue debt, loans
and loan proceeds to the Agency and the City. The Authority’s activities are blended with those of the City in these
financial statements and are reported as a debt service fund.
Coachella Industrial Development Authority - The Coachella Industrial Development Authority (the Industrial
Authority) was created for the purpose of financing and operating an industrial park located within the city limits. The
Industrial Authority is considered a component unit of the City and has been blended into the City’s general purpose
financial statements for reporting purposes.
The Coachella Educational and Governmental Access Channel Corporation - The Coachella Educational and
Governmental Access Channel Corporation (the Corporation) was created to provide educational opportunities and
enhance the community’s understanding of government through the use of public television. The Corporation is
considered a component unit of the City and has been blended into the City’s general purpose financial statements for
reporting purposes.
A component unit financial statement for each component unit previously described, excluding the Coachella Financing
Authority, the Coachella Industrial Development Authority and the Coachella Educational and Governmental Access
Channel Corporation, may be obtained at 1515 Sixth Street, Coachella, California 92236.
B) Basis of Presentation
The basic financial statements of the City of Coachella have been prepared in conformity with accounting principles
generally accepted in the United States of America (“GAAP”). The Governmental Accounting Standards Board
(“GASB”) is the accepted standard setting body for governmental accounting and financial reporting purposes.
28
City of Coachella
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B) Basis of Presentation - Continued
These statements require that the financial statements described below be presented:
Government-wide Statements: The Government-wide financial statements (i.e., the Statement of Net Assets and the
Statement of Activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of inter-fund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are expenses that are clearly identifiable with a specific program, project,
function or segment. Program revenues of the City include: 1) charges to customers or applicants who purchase, use,
or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items that are properly not included among program revenues are reported instead as general revenues.
Fund Financial Statements: Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds are reported as separate columns in the fund financial statements. All remaining governmental
funds are aggregated and reported as non-major funds.
C) Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements except for agency funds
which have no measurement focus. 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 all eligibility requirements imposed by the providers have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collected within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred,
as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated
absences and claims and judgments, are recorded only when payment is due.
29
City of Coachella
1)
REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C) Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued
Taxes, intergovernmental revenues, licenses, and interest associated with the current fiscal period are all considered to
be susceptible to accrual, and are therefore recognized as revenues of the current fiscal period. Only the portion of
special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue
of the current period. All other revenue items are considered to be measurable and available only when cash is received
by the City.
The City reports the following major governmental funds:
The General Fund is used to account for all financial resources of the City, except for those required to be
accounted for in another fund.
The Housing Grants Special Revenue Fund is used to account for receipts and expenditures of grant funds from
the U.S. Department of Housing and Urban Development.
The Development Impact Special Revenue Fund is used to account for funds received to mitigate the impact of
new development on the City’s infrastructure.
The Redevelopment Agency Special Revenue Fund is used to account for low and moderate income housing
activities within the Redevelopment Agency’s Project Areas.
The Redevelopment Agency Capital Project Fund is used to account for financial resources to be used for the
acquisition or construction of redevelopment projects and administrative expenses within the Redevelopment
Agency’s project areas.
The Redevelopment Agency Debt Service Fund is used to account for the accumulation of resources for, and the
payment of, long-term debt principal, interest and related costs within the Redevelopment Agency’s project areas.
Additionally, the City reports the following fund types:
The Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar
to private business enterprises - where the intent of the governing body is that the costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges, or (b) where the governing body has decided that periodic
determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance,
public policy, management control, accountability or other purposes. Revenues are fully accrued to include
unbilled services at year end.
The Agency Funds are used to account for money received by the City as an agent for individuals, other
governments and other entities.
The City applies all applicable GASB pronouncements in accounting and reporting for its proprietary operations as well
as the following pronouncements issued on or before November 30, 1989, unless these pronouncements conflict with
or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations,
Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBs) of the Committee on
Accounting Procedure.
30
City of Coachella
1)
C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued
As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements.
Direct expenses have not been eliminated from the functional categories; indirect expenses and internal payments have
been eliminated.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating 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. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources
first, and then use unrestricted resources as they are needed.
D) Encumbrances
Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance
accounting, under which purchase orders, contracts, and other commitments for the expenditure of resources are
recorded to reserve that portion of the applicable appropriation, is employed in governmental funds. Encumbrances
outstanding at year-end are reported as reservations of fund balances in the Governmental Funds Balance Sheet and
do not constitute expenditures or liabilities because the commitments will be honored during the subsequent fiscal
year.
E) Restricted Assets
Certain proceeds of bonds, notes and loans, as well as certain resources set aside for their repayment, are classified as
restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by
applicable bond covenants.
F) Use of Estimates in the Preparation of Financial Statements
The financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America and necessarily include amounts based on estimates and assumptions by Management.
Actual results could differ from those amounts.
G) Investments
As a governmental entity other than an external investment pool in accordance with GASB 31, the City's investments
are stated at fair value (see Note 2).
31
City of Coachella
1)
G) Investments - Continued
In applying GASB 31, the City utilized the following methods and assumptions:
1) Fair value is based on quoted market prices as of the valuation date;
2) The portfolio did not hold investments in any of the following:
a) Items required to be reported at amortized cost,
b) Items in external pools that are not SEC-registered,
c) Items subject to involuntary participation in an external pool,
d) Items associated with a fund other than the fund to which the income is assigned;
3) Aside from investments clearly identified as belonging to a specific fund, any unrealized gain/loss resulting from
the valuation will be recognized within the General Fund to the extent its cash and investments' balance exceeds
the cumulative value of those investments subject to GASB 31;
4) The gain/loss resulting from valuation will be reported within the revenue account "Investment Income" on the
Statement of Activities and the Statement of Revenues, Expenditures and Changes in Fund Balance for
Governmental Funds. For Proprietary Fund Types the gain/loss from valuation will be reported within the
“Investment Income” account on the Statement of Activities and the Statement of Revenues, Expenses and
Changes in Net Assets for Proprietary Funds.
H) Inter-fund Activity
In the governmental fund financial statements, activity between funds that are representative of lending/borrowing
arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the
current portion of inter-fund loans) or “advances to/from other funds” (i.e., the noncurrent portion of inter-fund loans).
Noncurrent portions of long-term inter-fund loan receivables are reported as advances and such amounts are offset
equally by a fund balance reserve account which indicates that they do not constitute expendable available financial
resources and therefore are not available for appropriation.
In the government-wide financial statements, these activities have been eliminated.
I)
Capital Assets and Depreciation
Capital assets, which include land, buildings, machinery and equipment, furniture and fixtures, and infrastructure assets,
are reported in the government-wide financial statements. Capital assets are recorded at cost where historical records
are available and at an estimated historical cost where no historical records exist. Assets purchased in excess of $5,000
are capitalized if they have an expected useful life in excess of 1 year. Infrastructure is also capitalized if cost is in
excess of $5,000 and it has an expected useful life in excess of 1 year. Donated capital assets are valued at their
estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the
value of the asset’s lives are not capitalized.
32
City of Coachella
1)
I)
Capital Assets and Depreciation - Continued
Major capital outlay for capital assets and improvements are capitalized as projects are constructed. For debt-financed
capital assets, interest incurred during the construction phase is reflected in the capitalization value of the asset
constructed, net of interest earned on the invested proceeds over the same period. Capital assets acquired through lease
obligations are valued at the present value of future lease payments at the date acquired.
Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the
government-wide financial statements and in the fund financial statements of the proprietary funds. Depreciation is
charged as an expense against operations and accumulated depreciation is reported on the Statement of Net Assets.
The range of lives used for depreciation purposes for each capital asset class is as follows:
Assets
Buildings
Machinery and Equipment
Office Equipment
Water System Improvements
Sewer Improvements
Infrastructure
Years
45 years
5 - 30 years
5 - 10 years
45 - 65 years
25 - 100 years
45 - 100 years
J) Long-term Liabilities
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities
in the applicable governmental activities. Bond premiums and discounts, as well as issuance costs, are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the
applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the
term of the related debt.
In the governmental fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances
are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
K) Fund Balance
In the governmental fund financial statements, governmental fund types report reservations of fund balance for amounts
that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose.
Designations of fund balance represent tentative management plans that are subject to change.
33
City of Coachella
1)
L) Pass-Through Agreements
In order to lessen the fiscal impact of the tax increment financing of redevelopment projects on other units of local
governments, the Redevelopment Agency, as a component unit of the City, has entered into pass-through agreements
with various governmental agencies to "pass-through" portions of tax increment funds received by the Redevelopment
Agency, attributable to the area within the territorial limits of other agencies.
M) Tax Increment
The Redevelopment Agency, as a component unit of the City, follows a policy of what constitutes contractual
obligations for the purpose of spending tax increment revenue. This policy holds that all expenditures of the
Redevelopment Agency Capital Project Funds (i.e. salaries, goods and supplies, professional services, etc.) are
contractual obligations. Monies are therefore transferred from the Redevelopment Agency Debt Service Funds to
cover
the costs of the expenditures from the Capital Project Funds. The Redevelopment Agency has no power to levy and
collect taxes, and any legislative property tax de-emphasis might necessarily reduce the amount of tax revenues that
would otherwise be available. Broadened property tax exemptions could have a similar effect. Conversely, any
increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would necessarily
increase the amount of tax revenues that would be available.
N) Appropriations Limit
Under Article XIIIB of the California Constitution (the GANN Spending Limitation Initiative), the City is restricted as
to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed
appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised
tax rates, revised fee schedules or other refund arrangements. For the fiscal year ended June 30, 2007, proceeds of
taxes did not exceed appropriations.
O) Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the Water, Sewer and Refuse Enterprise Funds consider all cash and
investments with original maturities of 90 days or less to be cash or cash equivalents. In addition, cash invested in the
City's cash management pool is considered to be cash equivalents.
P) Contributed Capital
Contributed capital represents cash or utility plant additions contributed to the City by property owners or developers
desiring services that require capital expenditures or capacity commitment from the date the City was formed until June
30, 2000. Effective July 1, 2000, in accordance with GASB Statement 33 all such capital contribution are reflected as
revenues rather than additions to contributed capital. Depreciation of contributed utility plant additions is charged to
operations.
34
City of Coachella
1)
Q) Property Tax Calendar
Property taxes are assessed and collected each fiscal year according to the following property tax calendar:
Lien Date
Levy Date
Due Date
Collection Date
January 1
July 1 - June 30
November 1 - 1st Installment
February 1 - 2nd Installment
December 10 - 1st Installment
April 10 - 2nd Installment
Under California law, property taxes are assessed and collected by the counties up to 1% 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. Accordingly, the City accrues only those taxes which are
received from the county within sixty days after year-end.
R) Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Governmentwide Statement of Net Assets
The governmental fund balance sheet includes a reconciliation between fund balance - total governmental funds and
net assets - governmental activities as reported in the government-wide Statement of Net Assets. The details of this
$15,679,440 difference are as follows:
Bond Issuance Costs
Bond issuance costs are due and payable in the current period and accordingly reported as an expense for the full
amount when paid in the governmental funds. However, the Statement of Net Assets reports an asset for the
unamortized portion of these costs over the life of the bond.
Bond Issuance Cost
Amortization
$
1,871,021
(65,915)
$
1,805,106
Capital Assets
Capital assets are recorded as expenditures in the full amount as current financial resources are used in the
governmental funds. However, the Statement of Net Assets allocates these capital assets as financial resources over
their estimated useful life.
Capital Assets, Net of Depreciation
$ 69,625,226
35
City of Coachella
1)
R) Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Governmentwide Statement of Net Assets - Continued
Long-term Debt Transactions
Long-term liabilities and the interest payable on these liabilities applicable to the City’s governmental activities are
not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both
current and long-term) are reported in the Statement of Net Assets. Balances at the end of the fiscal year were:
Interest Payable on Long-term Liabilities
$
(734,853)
(55,016,039)
$ (55,750,892)
S) Explanation of Differences Between the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances and the Government-wide Statement of Activities
The governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances includes a reconciliation
between net changes in fund balances - total governmental funds and changes in net assets of governmental activities
as reported in the government-wide Statement of Activities. The details of this $5,429,984 difference are as follows:
Depreciation of Capital Assets
Capital assets are expensed in full in the year of acquisition as current financial resources are used in governmental
funds. However, the cost of these capital assets are allocated over their estimated useful life in the Statement of
Activities through depreciation.
Capital Outlay
Depreciation Expense
$
6,713,342
(2,382,530)
Total
$
4,330,812
Some revenues and expenses reported in the Statement of Revenues, Expenditures and Changes in Fund Balances,
are included as an addition or deletion of long-term liabilities in the Statement of Net Assets.
Long-term Debt Proceeds
Long-term Debt Principal Payments
$
(702,448)
2,102,063
Total
$
1,399,615
36
City of Coachella
1)
S) Explanation of Differences Between the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances and the Government-wide Statement of Activities - Continued
Bond Issuance Costs
Bond issuance costs are reported in the Statement of Revenues, Expenditures and Changes in Fund Balances in the
full amount as current financial resources are used. However, in the Statement of Activities the cost is amortized
over the life of the bond.
$
(65,915)
Interest on Long-term Debt
Interest payable on long-term debt does not require the use of current financial resources and is not reported as
governmental fund expenditures. However these expenses are reported in the Statement of Activities.
2)
$
(234,528)
CASH AND INVESTMENTS
Cash and investments are classified in the accompanying financial statements as follows:
Statement of Net Assets:
Statement of Fiduciary Assets:
Total Cash and Investments
$
40,038,080
42,120,134
1,942,276
19,114
$
84,119,604
Petty Cash
Deposits with Financial Institution*
Investments*
$
1,200
10,283,965
73,834,439
Total Cash and Investments
$
84,119,604
Cash and investments consist of the following:
*In addition to the investments held by bond trustee, there is $2,089,661 of restricted cash held in deposits with
financial institution.
37
City of Coachella
2) CASH AND INVESTMENTS - Continued
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the City’s investment policy. The table
also identifies certain provisions of the Coachella Government Code (or the City’s investment policy, where more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address
investments of debt proceeds held by bond trustee 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
Investment Type
Local Agency Bonds
U.S. Treasury Obligations
U.S. Agency Securities
U.S. Corporate Bonds
Banker’s Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Demand Deposits
Repurchase Agreements
Reverse Repurchase Agreements
Medium - Term Notes
Mutual Funds
Money Market Mutual Funds
Mortgage Pass-through Securities
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
JPA Pools (Other Investment Pools)
Maximum
Maturity(1)
5 years
5 years
5 years
N/A
270 days
270 days
5 years
N/A
2 weeks
92 days
5 years
N/A
N/A
5 years
N/A
N/A
N/A
Maximum
Percentage
Of Portfolio(2)
None
None
30%
25%
40%
15%
30%
None
10%
20% of base value
30%
15%
10%
20%
None
None
None
(1)
No more than 50% of the portfolio shall have maturity dates in excess of 2 years at any given time.
(2)
Excluding amounts held by bond trustee that are not subject to California Government Code Restrictions.
Maximum
Investment
In One Issuer
None
None
None
5%
None
10%
None
None
None
None
None
None
10%
None
None
None
None
Investments Authorized by Debt Agreements
Investments of debt proceeds held by the bond trustee are governed by provisions of the debt agreements, rather than the
general provisions of the California Government Code or the City’s investment policy.
Disclosure 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.
38
City of Coachella
2)
CASH AND INVESTMENTS - Continued
Disclosure Relating to Interest Rate Risk - Continued
Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is
provided by the following table that shows the distributions of the City’s investment by maturity:
12 Months
Or Less
Investment Type
Federal Agency Securities
Money Market Fund
Corporate Bonds
State Investment Pool - LAIF
County Investment Pool
U.S. Treasury Notes
Certificates of Deposit
Held By Bond Trustee:
Investment Agreements
Money Market Fund
Total
$
5,589,246 $ 1,895,037
402,526
402,526
2,680,404
596,064
16,963,765
16,963,765
214,458
214,458
7,531,336
2,746,749
75,061
75,061
347,170
32,632,538
7,397,935
$
Remaining Maturity (in Months)
13 to 24
25 to 60
Months
Months
$
840,736 $ 1,039,598 $
1,813,875
605,025
289,626
1,189,689
1,728,725
1,216,162
1,839,700
5,135,076
2,698,305
347,170
521,180
7,397,935
73,834,439 $ 30,812,775
More Than
60 Months
24,277,977
$ 27,799,633 $ 7,680,462 $
7,541,569
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by (where applicable) the California Government Code or the City’s
investment policy and the actual rating as of year end for each investment type:
Minimum
Legal
Rating
Investment Type
$ 5,589,246
Money Market
402,526
Corporate Bonds
2,680,404
State Investment Pool - LAIF
16,963,765
County Investment Pool
214,458
U.S. Treasury Notes
7,531,336
Certificates of Deposit
75,061
347,170
Held By Bond Trustee:
32,632,538
Money Market Fund
7,397,935
Total
N/A
N/A
Exempt
from
Disclosure
$
Rating as of Year End
AAA
$ 5,589,246 $
402,526
2,231,164
N/A
N/A
A
N/A
Not
Rated
Aa
$
449,240
16,963,765
214,458
7,531,336
75,061
347,170
A
A
$ 73,834,439
32,111,358
7,397,935
$
39
0
$ 55,610,735 $
521,180
449,240
$ 17,774,464
City of Coachella
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that
stipulated by the California Government Code.
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that
represent 5% or more of the total City’s investments are as follows:
Issuer
Federal National Mortgage Association
Blackrock Institutional Fund
U.S. Government
XL Asset Funding Company, LLC
Investment Type
Money Market Funds
U.S. Treasury Notes
Reported Amount
$
4,128,164
7,380,077
7,531,336
32,111,358
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 government units by pledging securities in an undivided collateral pool held by a depository
regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the
collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the
secured public deposits.
As of June 30, 2007, no deposits with financial institutions in excess of federal depository insurance limits were held in
uncollateralized accounts. As of June 30, 2007, the City had no investments held by the same broker-dealer (counterparty)
that was used by the City to buy the securities.
Local Agency Investment Fund (LAIF)
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the
City’s investment in this pool is reported in the accompanying financial statements at amounts based upon City’s prorata 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.
40
City of Coachella
Local Agency Investment Fund (LAIF) - Continued
The LAIF is a special fund of the California State Treasury through which local governments may pool investments. Each
City may invest up to $40,000,000 in the fund. Investments in LAIF are highly liquid, as deposits can be converted to cash
within twenty-four hours without loss of interest. Investments with LAIF are secured by the full faith and credit of the State
of California. The yield of LAIF during the quarter ended June 30, 2007 was 5.23%. The amortized cost and estimated
market value of the LAIF Pool at June 30, 2007 was $65,786,597,418 and $65,756,665,933, respectively. The City’s share
of the Pool at June 30, 2007 was approximately 0.0258 percent.
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. Included in LAIF's investment portfolio are certain derivative securities or similar
products in the form of structured notes and asset-backed securities totaling $774,000,000 and $1,501,103,000. LAIF's and
the City’s exposure to risk (credit, market or legal) is not currently available.
The LAIF has oversight by the Local Investment Advisory Board. The LAIF Board consists of five members as designated
by Statute. LAIF is also regulated by California Government Code Section 16429.
Cash with Fiscal Agent
Cash and investments held and invested by fiscal agents on behalf of the City are pledged for payment or security of
certain long-term debt issuances. Fiscal agents are mandated by bond indentures as to the types of investments in which
debt proceeds can be invested.
Collateral for Deposits
Under the provisions of the California Government Code, California banks and savings and loan associations are required to
secure a city's deposits by pledging government securities as collateral. The market value of the pledged securities must
equal at least 110% of a city's deposits. California law also allows financial institutions to secure city deposits by pledging
first trust deed mortgage notes having a value of 150% of a city's total deposits.
The collateral for certificates of deposit is generally held in safekeeping by the Federal Home Loan Bank in San Francisco
as the third-party trustee. The securities are physically held in an undivided pool for all California public agency depositors.
The State Public Administrative Office for public agencies and the Federal Home Loan Bank maintain detailed records of
the security pool which are coordinated and updated weekly.
The City Treasurer, at his/her discretion, may waive the 110% collateral requirement for deposits which are insured up to
$100,000 by the FDIC.
41
City of Coachella
3)
LOANS RECEIVABLE
The Redevelopment Agency has made long-term rehabilitation and acquisition loans to
owner-occupants of substandard homes who would otherwise be unable to obtain sufficient
public or private financing to rehabilitate or acquire their homes. The loans are payable upon
the sale or change in ownership of the property. Fund balance has been reserved for these
long-term loans receivable.
$
3,920,795
The Redevelopment Agency has loaned money to commercial and industrial businesses for
improvements and economic development. Fund balance has been reserved for these longterm loans receivable.
979,114
Total Loans Receivable
4)
$
4,899,909
CAPITAL ASSETS
The following is a summary of changes in capital assets for the year:
Beginning
Balance
Capital Assets, Not Depreciated:
Land
Construction in Progress
Total Capital Assets, Not
Depreciated
Capital Assets Being Depreciated:
Buildings
Furniture and Fixtures
Infrastructure
Total Capital Assets Being
Depreciated
Less Accumulated Depreciation:
Buildings
Furniture and Fixtures
Infrastructure
Total Accumulated Depreciation
Depreciated, Net
Governmental Activities Capital
Assets, Net of Depreciation
$
$
Increases*
231,819 $
653,717 $
2,853,759
231,819
3,507,476
Ending
Balance
Decreases
$
0
885,536
2,853,759
3,739,295
3,882,821
5,773,037
6,978
19,003,168
3,882,821
6,353,018
6,978
89,101,042
70,097,874
28,666,004
70,677,855
(2,009,779)
(4,331,370)
(1,845)
(1,205,046)
(136,000)
(446,410)
(1,395)
(25,326,083)
(7,548,040)
(25,909,888)
0
(33,457,928)
21,117,964
44,767,967
0
65,885,931
21,349,783 $
48,275,443 $
0 $ 69,625,226
579,981
0
(2,145,779)
(4,777,780)
(3,240)
(26,531,129)
*Includes changes to the assets and accumulated depreciation due to the valuation of assets under GASB 34.
42
99,343,859
City of Coachella
4)
CAPITAL ASSETS - Continued
Depreciation expense was charged to functions/programs as follows:
General Government
Public Safety
Public Works
Total Depreciation Expense - Governmental Activities
$
2,329,596
46,955
5,979
$
2,382,530
Beginning
Balance
Capital Assets, Not Depreciated:
Land
Construction in Progress
Total Capital Assets Not
Depreciated
Capital Assets Being Depreciated:
Buildings
Infrastructure
Depreciated
Less Accumulated Depreciation:
Buildings
Infrastructure
Total Accumulated Depreciation
Depreciated, Net
Business-type Activities Capital
Assets, Net of Depreciation
$
$
Increases*
Ending
Balance
Decreases
649,936 $
23,557,833
14,730,327
$
9,614,553
$
649,936
28,673,607
24,207,769
14,730,327
9,614,553
29,323,543
680,329
11,317,395
11,936,968
157,939
55,478,027
23,934,692
55,635,966
(350,657)
(4,746,835)
(6,829,855)
(17,008)
(367,753)
(16,723,988)
(11,927,347)
(17,108,749)
0
(29,036,096)
12,007,345
38,527,217
0
50,534,562
36,215,114 $
53,257,544 $
680,329
11,475,334
67,414,995
0
(367,665)
(5,114,588)
(23,553,843)
9,614,553 $
*Includes changes to the assets and accumulated depreciation due to the valuation of assets under GASB 34.
Depreciation was charged to functions/programs as follows:
Water Utility
Sewer Utility
$
986,793
720,900
Total Depreciation Expense - Business-type Activities
$
1,707,693
43
79,570,658
79,858,105
City of Coachella
5)
LONG-TERM LIABILITIES
The following is a summary of the changes in long-term liabilities for the year:
Beginning
Balance
Compensated Absences (Note 6)
Leases Payable
Copier
Fire Truck
Fire Truck
$
Total Leases
$
560,355
$
353,707
$
6,215,000
1,415,000
4,770,000
9,355,000
23,120,000
10,725,000
Total Revenue Bonds
55,600,000
$
56,415,654
$
348,741
$
0
$
702,448
140,089
$
12,041
43,516
81,417
348,741
255,299
Ending
Balance
Deletions
23,168
232,131
Revenue Bonds
1998 Tax Allocation Bonds
1999 Tax Allocation Bonds
2004 Tax Allocation Bonds, Series A
2004 Tax Allocation Bonds, Series B
Total
Additions
$
136,974
773,973 $
11,127
188,615
267,324
$
467,066 $
Due Within
One Year
193,493
11,127
44,252
61,747
117,126
135,000
75,000
65,000
145,000
925,000
480,000
6,080,000
1,340,000
4,705,000
9,210,000
22,195,000
10,245,000
145,000
80,000
70,000
150,000
330,000
125,000
1,825,000
53,775,000
900,000
55,016,039 $
910,619
2,102,063
$
Beginning
Balance
Compensated Absences (Note 6)
$
273,934
Loan Payable
10,741,797
Revenue Bonds
2005A Wastewater
2005B Wastewater
2003 Water
5,620,000
5,000,000
12,440,000
Total Revenue Bonds
23,060,000
Deferred Amounts:
Bond Premium
Bond Discounts
Refunding Gain/Loss
Net Deferral Amounts
Total
Additions
$
126,866 $
68,483
$
10,192,812
0
369,453
(98,617)
(247,794)
3,430
7,059
23,042
10,489
$ 34,098,773
Ending
Balance
Deletions
$ 10,330,167 $
44
332,317 $
Due Within
One Year
83,079
20,934,609
833,863
105,000
50,573
260,000
5,515,000
4,949,427
12,180,000
110,000
52,681
265,000
415,573
22,644,427
427,681
13,684
355,769
(95,187)
(240,735)
13,684
19,847
497,740
$
43,931,200 $
1,344,623
City of Coachella
5)
LONG-TERM LIABILITIES - Continued
Leases Payable
On March 12, 2003 the City Council approved a non-cancelable long-term lease for four photocopy
machines to be used by the City. The lease is for 60 monthly payments of $1,171.46 beginning in May
2003. The assets acquired under this lease were recorded at their acquisition cost of $53,442.
$
11,127
On July 18, 2003 the City entered into a non-cancelable long-term lease with Kansas State Bank for a fire
truck to be used by the City. The lease is for 7 annual payments of $1,171.46 beginning in May 2003. The
assets acquired under this lease were recorded at their acquisition cost of $53,442.
188,615
In March, 2007 the City entered into a non-cancelable long-term lease with Kansas State Bank for a fire
truck to be used by the City. The lease is for 1 payment of $21,600 due April 3, 2007 and 5 annual
payments of $75,913.15 beginning in June 22, 2007. The assets acquired under this lease were recorded at
their acquisition cost of $348,741.
267,324
Total Leases
$
467,066
The future debt requirements of the Leases are as follows:
Year Ending
June 30,
2008
2009
2010
2011
Total
$
$
Principal
117,126
111,152
116,558
122,230
467,066
Interest
22,769
17,029
11,623
5,951
$
$
57,372
$
$
Total
139,895
128,181
128,181
128,181
524,438
Loan Payable
Business Activities:
On September 26, 2005 the Coachella Sanitary District entered into a loan payable from the State of
California State Water Resources Control Board. The terms of this loan provide for drawing funds for the
expansion of the sewer treatment plant up to $23,658,615. The actual total amount of the loan will be
determined upon completion of the project when all costs are known. Repayment of this loan shall be paid
in annual installments commencing on the date that is one year after the completion of construction and
shall be fully amortized not later than twenty years after completion of construction. The estimated
completion date was March 31, 2007 but the project was not completed until September 2007. The interest
rate on this note is 2.3%.
$ 20,934,609
Total Loans
$ 20,934,609
45
City of Coachella
5)
Revenue Bonds
On December 14, 1998, the Redevelopment Agency issued $7,020,000 Tax Allocation Refunding Bonds,
Series 1998 for Project Area 3, to advance refund the outstanding amount of the Agency’s Project Area 3
Tax Allocation Refunding Bonds of 1989, to advance refund the outstanding amount of the Agency’s
Project Area 3 Tax Allocation Bonds of 1991 and to finance on-going redevelopment activities. Interest
on the bonds is payable June 1 and December 1 of each year. Interest on the bonds accrues at rates
varying from 3.85% to 5.875% per annum. Principal on term bonds is payable in annual installments
ranging from $100,000 to $470,000 commencing December 1, 1999, through December 1, 2028. At
June 30, 2007, the Agency has a cash reserve balance for debt service of $521,179 which is sufficient to
cover the Bond Indenture Reserve Requirement.
6,080,000
On September 17, 1999, the Redevelopment Agency issued $1,895,000 Tax Allocation Refunding
Bonds, Series 1999 for Project Area 2, to refund the outstanding amount of the Agency’s Project Area 2
Tax Allocation Refunding Bonds of 1989 and to finance on-going redevelopment activities. Interest on
the bonds is payable June 1 and December 1 of each year. Interest on the bonds accrues at rates varying
from 4.40% to 6.15% per annum. Principal on serial bonds is payable in annual installments ranging from
$55,000 to $150,000 commencing June 1, 2000, through June 1, 2019. At June 30, 2007, the Agency has
a cash reserve balance for debt service of $159,225 which is sufficient to cover the Bond Indenture
Reserve Requirement.
1,340,000
On December 8, 2004, the Coachella Financing Authority issued $4,840,000 Tax Allocation Revenue
Refunding Bonds, Series 2004A for Project Areas 1 and 2. Concurrently with the issue of these bonds,
the Coachella Financing Authority loaned the proceeds to the Coachella Redevelopment Agency pursuant
to two (2) loan agreements between the two entities. The two loans consist of one loan each to Project
Area 1 and Project Area 2. The proceeds from the loan to Project Area 1 were to used refund the
outstanding amount of the Agency’s Project Area 1 Tax Allocation Refunding Bonds of 1994 and to
finance on-going redevelopment activities. The proceeds from the loan to Project Area 2 were used to
refund the outstanding amount of the Agency’s Project Area 2 Tax Allocation Refunding Bonds of 1994
and to finance on-going redevelopment activities. Interest on the bonds is payable June 1 and December 1
of each year. Interest on the bonds accrues at rates varying from 1.85% to 5.25% per annum. Principal on
serial and term bonds is payable in annual installments ranging from $65,000 to $405,000 commencing
December 1, 2005, through December 1, 2030. At June 30, 2007, the Authority has a cash reserve
balance for debt service of $438,961 which is sufficient to cover the Bond Indenture Reserve
Requirement.
4,705,000
On December 8, 2004, the Coachella Financing Authority issued $9,625,000 Tax Allocation Revenue
Refunding Bonds, Series 2004B for Project Area 4. Concurrently with the issue of these bonds, the
Coachella Financing Authority loaned the proceeds to the Coachella Redevelopment Agency pursuant to
a loan agreement between the two entities. The loan was made to Project Area 4. The proceeds from the
loan to Project Area 4 were used to refund the outstanding amount of the Agency’s Project Area 4 Tax
Allocation Refunding Bonds of 1994 and to finance on-going redevelopment activities. Interest on the
bonds is payable September 1 and March 1 of each year. Interest on the bonds accrues at rates varying
from 1.80% to 5.25% per annum. Principal on serial and term bonds is payable in annual installments
ranging from $145,000 to $680,000 commencing September 1, 2005, through September 1, 2034. At
June 30, 2007, the Authority has a cash reserve balance for debt service of $733,066 which is sufficient
to cover the Bond Indenture Reserve Requirement.
9,210,000
46
City of Coachella
5)
Revenue Bonds - Continued
On May 9, 2006, the Redevelopment Agency issued $23,120,000 Tax Allocation Bonds, 2006 Series A
for Project Areas 1, 2, 3 and 4 (merged for this purpose) to finance on-going redevelopment activities.
Interest on the bonds is payable September 1 and March 1 of each year. Interest on the bonds accrues at
rates varying from 3.45% to 5.25% per annum. Principal on serial and term bonds is payable in annual
installments ranging from $330,000 to $1,805,000 commencing September 1, 2006, through September
1, 2036. At June 30, 2007, the Agency has a cash reserve balance for debt service of $1,764,769 which is
sufficient to cover the Bond Indenture Reserve Requirement.
22,195,000
On May 9, 2006, the Redevelopment Agency issued $10,725,000 Taxable Tax Allocation Housing SetAside Bonds, 2006 Series A for Project Areas 1, 2, 3 and 4 (merged for this purpose) Low and Moderate
Income Housing to finance on-going redevelopment low and moderate income housing activities.
Interest on the bonds is payable September 1 and March 1 of each year. Interest on the bonds accrues at
rates varying from 5.30% to 6.25% per annum. Principal on term bonds is payable in annual installments
ranging from $125,000 to $735,000 commencing September 1, 2006, through September 1, 2036. At
June 30, 2007, the Agency has a cash reserve balance for debt service of $943,201 which is sufficient to
cover the Bond Indenture Reserve Requirement.
10,245,000
Total Revenue Bonds - Government Activities
$ 53,775,000
Business Activities:
On March 30, 2005, the Coachella Financing Authority issued $5,725,000 Wastewater Revenue
Refunding Bonds, Series 2005A for the Coachella Sanitary District, to advance refund the outstanding
amount of the Coachella Sanitary District Wastewater Revenue Refunding Certificates of Participation
Series 1995 and to finance on-going capital improvements to the Wastewater Enterprise. Interest on the
bonds is payable October 1 and April 1 of each year. Interest on the bonds accrues at rates varying from
3.00% to 4.70% per annum. Principal on serial and term bonds is payable in annual installments ranging
from $105,000 to $335,000 commencing April 1, 2006, through April 1, 2035. At June 30, 2007, the
cash reserve balance for debt service is $359,683 which is sufficient to cover the Bond Indenture Reserve
Requirement.
5,515,000
On September 26, 2005, the Coachella Financing Authority issued $5,000,000 Wastewater Revenue
Refunding Bonds (USDA), Series 2005B for the Coachella Sanitary District, to finance on-going capital
improvements to the Wastewater Enterprise. Interest on the bonds is payable September 26 and March 26
of each year. Interest on the bonds accrues at 4.125% per annum. Principal on the bonds is payable in
annual installments ranging from $50,573 to $248,591 commencing September 26, 2006, through
September 26, 2045.
4,949,427
On July 15, 2003, the Coachella Water Authority issued $13,410,000 Water Revenue Bonds, Series 2003
to advance refund the outstanding amount of the Water Revenue Refunding Certificates of Participation
Series 1992 and to finance on-going capital improvements to the water system. Interest on the bonds is
payable September 1 and March 1 of each year. Interest on the bonds accrues at rates varying from
2.00% to 4.63% per annum. Principal on serial and term bonds is payable in annual installments ranging
from $245,000 to $795,000 commencing March 1, 2004, through March 1, 2033. Concurrently with the
issuance of the bonds, a surety policy was purchased in lieu of maintaining a reserve balance.
12,180,000
Total Revenue Bonds - Business Activities
$
47
22,644,427
City of Coachella
5)
The future debt requirements of the Government Activities Revenue Bonds are as follows:
Year Ending
June 30,
2008
2009
2010
2011
2012
2013-2017
2018-2022
2023-2027
2028-2032
2033-2037
Total
$
Principal
900,000
935,000
1,395,000
1,140,000
1,200,000
6,820,000
8,640,000
11,015,000
14,765,000
6,965,000
$
53,775,000
$
$
Interest
2,671,689
2,635,974
2,586,957
2,532,100
2,481,524
11,518,766
9,650,035
7,205,204
3,983,923
1,086,095
46,352,267
$
$
Total
3,571,689
3,570,974
3,981,957
3,672,100
3,681,524
18,338,766
18,290,035
18,220,204
18,748,923
8,051,095
100,127,267
The future debt requirements of the Business Activities Revenue Bonds are as follows:
Year Ending
June 30,
2008
2009
2010
2011
2012
2013-2017
2018-2022
2023-2027
2028-2032
2033-2037
2038-2042
2043-2047
Total
6)
$
Principal
427,681
434,876
452,163
469,546
487,027
2,756,134
3,405,660
4,308,198
5,442,828
2,549,549
974,502
936,263
$
22,644,427
$
$
Interest
1,017,321
1,003,831
989,422
972,014
953,208
4,459,388
3,804,924
2,913,543
1,773,598
601,999
286,933
69,655
18,845,836
$
$
Total
1,445,002
1,438,707
1,441,585
1,441,560
1,440,235
7,215,522
7,210,584
7,221,741
7,216,426
3,151,548
1,261,435
1,005,918
41,490,263
COMPENSATED ABSENCES
For governmental funds and proprietary funds, accumulated vacation, sick and administrative leave benefits payable in
future years when used by City employees amounted to $773,973 and $332,317, respectively at June 30, 2007. These
amounts are payable from future resources and therefore have been recorded in long-term liabilities in the government-wide
financial statements. Vacation benefits, sick leave, and compensatory time are recorded as expenditures in the related
governmental fund financial statements when used. Upon retirement or termination, the expenditures are recorded in the
fund which incurred the original obligation. Compensated absences payable for proprietary funds are reported within the
respective funds.
48
City of Coachella
7)
DEFEASED REVENUE BONDS
On September 1, 1995, the Coachella Sanitary District issued $4,145,000 Coachella Sanitary District Wastewater Revenue
Refunding Certificates of Participation Series 1995 to advance refund the 1986 Coachella Sanitary District Wastewater
Treatment Plant Certificates of Participation. The net proceeds plus prior funds were used to purchase U.S. government
securities. Those securities were placed in an irrevocable trust with an escrow agent to provide for all future debt service
payments on the 1986 Certificates of Participation. As a result, the 1986 Certificates of Participation are considered to be
defeased and the liability of those bonds has been removed from long-term liabilities. On July 1, 2007 the outstanding
balance matured and was paid.
The Coachella Sanitary District Wastewater Revenue Refunding Certificates of Participation Series 1995 were refunded by
the issuance of the $5,725,000 Wastewater Revenue Refunding Bonds, Series 2005A on March 30, 2005 and subsequently
called on May 16, 2005.
8)
INTER-FUND RECEIVABLES, PAYABLES AND TRANSFERS
During the course of normal operations, the City enters into numerous transactions between funds, including expenditures
and transfers of resources to provide services, construct assets, and service debt. The accompanying governmental fund
financial statements generally reflect such transactions as operating transfers. Nonrecurring or nonroutine permanent
transfers of equity are reported as residual equity transfers. Inter-fund transactions and inter-fund payables/receivables at
year-end are not eliminated in the governmental fund financial statements.
Inter-fund receivables and payables are as follows:
DUE FROM
Redevelopment Redevelopment
Redevelopment
Agency
Agency
Agency
Non-major
Special Revenue Capital Project
Debt Service
Governmental
Fund
Fund
Fund
Funds
General
Fund
DUE
TO
General Fund
Redevelopment Agency
Special Revenue Fund
$
Total
$
$
629,183 $
104,741 $
634,725 $
2,351,807 $
Coachella
Sanitary
District
3,331,754 $
251,383
251,383 $
Total
7,052,210
251,383
629,183 $
104,741 $
634,725 $
2,351,807 $
Interfund transfers are as follows:
Transfers Out
Transfers In
General Fund
Development Impact Special Revenue Fund
Redevelopment Agency Special Revenue Fund
Redevelopment Agency Capital Project Fund
Redevelopment Agency Debt Service Fund
Other Non-Major Governmental Funds
Water Authority
Sanitary District
$
2,642,817
3,125,508
$
1,210,924
418,282
6,885,684
3,428,395
$
17,711,610
49
1,321,680
4,225,508
174,343
6,157,752
879,855
4,180,738
634,558
137,176
$
17,711,610
3,331,754 $
7,303,593
City of Coachella
9)
FUND BALANCE RESERVES
The fund financial statements various reserves and designations are as follows:
General Fund
Reserved:
Encumbrances
Loans Receivable
Debt Service
Unreserved:
Undesignated
Designated for Specific
Projects and Programs
$
Housing
Grants
Special Revenue
Fund
1,251,604 $
$
1,104,669
21,226
$
163,024
46,811
1,017,122
9,289,403
10,607,322
22,270,545
9,289,403 $
11,733,217 $
23,497,502
9,111,113
(12,021,607)
$
10,362,717 $
Redevelopment
Agency
Debt Service
Fund
Total
$
Redevelopment Redevelopment
Agency
Agency
Special Service Capital Project
Fund
Fund
3,748,429
Total
Reserved:
Encumbrances
Loans Receivable
Land Held For Resale
Debt Service
Unreserved:
Undesignated
Designated for Specific
Projects and Programs
Development
Impact
Special Revenue
Fund
$
1,726,822 $
Non-major
Funds
$
4,768,658
8,188,631
14,038
(1,946,972)
$
4,768,658 $
6,255,697
Reserved for Encumbrances
This reserve was established to reflect encumbrance accounting, under which purchase orders, contracts, and other
commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation, is
employed in governmental funds in such a manner that they will not be considered as available spendable resources.
Reserved for Loans Receivable
This reserve was established to reflect the noncurrent portion of loans receivable in such a manner that they will not be
considered as available spendable resources.
50
City of Coachella
9)
FUND BALANCE RESERVES - Continued
Reserved for Land Held for Resale
This reserve was established to remove land held for resale from current fund balances in such a manner that they will not
be considered as available spendable resources.
Reserved for Debt Service
This reserve was established for cash restrictions for future debt service in such a manner that they will not be considered as
available spendable resources.
10) OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES
Expenditures in Excess of Appropriation
Total expenditures exceeded total appropriations in the following funds:
Appropriations
Expenditures
Special Revenue Funds:
Housing Grants
Development Impact
Supplemental Law Enforcement Services AB3229
Avenue 48
CDBG Economic Development
Landscape and Lighting District
Fire Protection District
$
$
$
$
$
$
$
$
345,070
$
1,268,665
46,519
18,529
370,943
384,571
2,427,343
Capital Project Funds:
Capital Improvement Projects
$
Debt Service Funds:
General Leases
$
Difference
$
$
$
$
$
$
1,258,773
2,450
1,389,196
86,857
2,155,066
435,877
391,008
2,436,338
$
$
$
$
$
$
$
$
(913,703)
(2,450)
(120,531)
(40,338)
(2,136,537)
(64,934)
(6,437)
(8,995)
2,427,761
$
3,102,709
$
(674,948)
14,057
$
14,058
$
(1)
The excess was paid for with revenues that exceeded expectations.
The following had a deficit fund balance at June 30, 2007. These deficits are expected to be eliminated through future
revenues.
Fund
Amount
Avenue 48 Special Revenue Fund
ECD Entitlement Program Special Revenue Fund
51
$
$
(2,019,183)
(185,501)
City of Coachella
11) CITY EMPLOYEES’ RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
Plan Description
The City of Coachella contributes to the California Public Employees Retirement System (PERS), an agent multipleemployer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual costof-living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and
administrative agent for participating public entities within the State of California. Benefit provisions and all other
requirements are established by state statute and city ordinance. As of fiscal year 2007, entities participating in the
California Public Employees Retirement System (PERS) with less than one hundred members, are mandated by the
State to be in a risk pool. The City of Coachella has less than one hundred members participating in PERS and has
presented information based on the requirements of cost-sharing multiple-employer defined benefits plans since certain
information for an agent multiple-employer defined benefit plan are unavailable. Copies of the PERS' annual financial
report may be obtained from their executive office: 400 P Street, Sacramento, California 95814.
Funding Policy
Participants are required to contribute 8% and 9% of their annual covered salary for miscellaneous and safety
employees, respectively. The City makes the contributions required of City employees. The City is required to
contribute at an actuarially determined rate. These rates were determined as part of the June 30, 2004 actuarial
valuation: the current rate is 12.280% of annual covered payroll. The contribution requirements of plan members and
the City are established and may be amended by PERS.
Miscellaneous Employees
For 2006-07, the City's annual pension cost for miscellaneous employees, of $873,997 for PERS was equal to the City's
required and actual contributions. The required contribution for fiscal year 2006-07 was determined as part of the June
30, 2004, actuarial valuation using the entry age normal actuarial cost method. The actuarial value of PERS assets was
determined using techniques that smooth the effects of short-term volatility in the market value of investments over a
three-year period (smoothed market value).
PERS unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed
basis. Beginning on July 1, 1997, all changes in liability due to plan amendments, changes in actuarial assumptions, or
changes in actuarial methodology will be amortized separately over a 20-year period. In additions, all gains or losses
will be tracked and 10% of the net unamortized gain or loss will be amortized each year. Finally, if a plan’s accrued
liability exceeds the actuarial value of assets, the annual contribution with respect to the total unfunded liability may not
be less than the amount produced by a 30 year amortization of the unfunded liability.
THREE YEAR TREND INFORMATION FOR PERS
Fiscal
Annual Pension
Percentage of
Net Pension
Year
Cost (APC)
APC Contributed
Obligation
6/30/05
$
406,334
100%
$
-06/30/06
$
638,231
100%
$
-06/30/07
$
873,997
100%
$
-0-
52
City of Coachella
11) CITY EMPLOYEES’ RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
Safety Employees
At one time the City of Coachella had its own police force. It was disbanded and now the City contracts with the County
Sheriff for police services. For 2006-07, the City's annual pension cost, for safety employees, of $0 for PERS was equal
to the City's required and actual contributions. The required contribution for fiscal year 2006-07 was determined as part
of the June 30, 2004, actuarial valuation using the entry age normal actuarial cost method. The actuarial value of PERS
assets was determined using techniques that smooth the effects of short-term volatility in the market value of
investments over a three-year period (smoothed market value).
PERS unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis.
Beginning on July 1, 1997, all changes in liability due to plan amendments, changes in actuarial assumptions, or changes
in actuarial methodology will be amortized separately over a 20-year period. In additions, all gains or losses will be
tracked and 10% of the net unamortized gain or loss will be amortized each year. Finally, if a plan’s accrued liability
exceeds the actuarial value of assets, the annual contribution with respect to the total unfunded liability may not be less
than the amount produced by a 30 year amortization of the unfunded liability.
THREE YEAR TREND INFORMATION FOR PERS
Fiscal
Annual Pension
Percentage of
Net Pension
Year
Cost (APC)
APC Contributed
Obligation
6/30/05
$
-0100%
$
-06/30/06
$
-0100%
$
-06/30/07
$
-0100%
$
-0-
12) RISK MANAGEMENT
The City is a member of the Public Entity Risk Management Authority (PERMA) formerly Coachella Valley Joint Powers
Insurance Authority (CVJPIA), a joint powers authority formed under Section 990 of the California Government Code for
the purpose of jointly funding programs of insurance coverage for its members. The Authority is currently comprised of
thirty-four participating member agencies.
The City participates in the liability, worker’s compensation and long-term disability insurance programs of PERMA.
The Liability Program is a risk sharing pool with a deductible option. At June 30, 2007, coverage is provided from
$125,000 to $10,000,000 per occurrence. This coverage represents a transfer of risk from the members of the Authority for
those losses excess of the member’s self insured retention (SIR). The City has a SIR of $125,000. Covered losses include
losses resulting from any one occurrence because of personal injury, property damage or public officials’ errors and
omissions. Member premiums are subject to retrospective rating adjustments.
For those members choosing to establish deductibles under the liability program, losses in excess of the deductible amounts
are paid by the Authority from separate accounts maintained for each participant. The deductible feature of the program
acts a s a claims servicing type of public entity risk pool and does not represent an additional transfer of risk. The City does
not participate in the deductible pool. At June 30, 2007, the City did not have a liability to the Authority for claims losses.
53
City of Coachella
12) RISK MANAGEMENT - Continued
The Worker’s Compensation Insurance Program is a claims servicing pool, a banking pool and in insurance purchasing
pool. As an insurance purchasing pool, the program allows participating members to benefits of the economies of scale in
securing excess worker’s compensation coverage. Coverage is provided from $250,000 to $10,000,000 for each accident or
employee. The program, as a claims servicing pool maintains separate accounts for each program member from which that
member’s losses are paid. The worker’s compensation insurance program does not provide for a transfer of risk and
advance funds to pay member loosed in excess of member funds on deposit in the manner of a banking pool. Participant
premium deposits are subject to retroactive rating adjustments. At June 30, 2007, the City did not have a liability to the
Authority for worker’s compensation losses
13) DEFERRED COMPENSATION PLAN
The provisions of Internal Revenue Code (IRC) Section 457 were amended to require new plans to place all assets and
income of the Plan in trust for the executive benefit of participants and their beneficiaries. Plans in existence as of the date
of this change must place the Plan assets and income in trust by January 1, 1999. Once the assets and income are placed in
trust the City no longer owns the amounts deferred by employees and related income. Prior to this IRC Section 457
Amendment, the deferred amounts and related income remained as property of the City until withdrawn by the employee.
The City of Coachella placed its Deferred Compensation Plan assets and related income in trust as allowed by IRC Section
457 and as a result the asset and corresponding liability are no longer presented in these financial Statements. This change
had no impact on the City’s Fund Equity.
14) COMMITMENTS AND CONTINGENCIES
The City is a defendant in various legal actions. Management believes that the ultimate resolution of these actions will not
have a significant effect on the City’s financial position or results of operations.
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the
federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable
funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time
although the City expects such amounts, if any, to be immaterial.
15) PRIOR PERIOD ADJUSTMENTS
Entity-wide Statement of Activities – Governmental Activities
Included in the Governmental Fund’s Statement of Activities are prior period adjustments of $43,280,936. Of this amount,
$43,944,631 were adjustments relating to infrastructure, net of accumulated depreciation, and land that was not recorded in
the prior years. Also included in the prior period adjustments were $(546,085) and $(219,558) which are adjustments to
calculate the estimated beginning balance of deferred charges and accrued interest payable, respectively. The remaining
$101,948 adjustments are from the Governmental Fund’s Statement of Revenues, Expenditures, and Changes in Fund
Balances.
54
City of Coachella
15) PRIOR PERIOD ADJUSTMENT - Continued
Entity-wide – Business-type Activities
Included in the Business-type Statement of Activities are prior period adjustments of $30,110,159. Of this amount,
$24,727,273 and $5,735,141 were adjustments relating to infrastructure, net of accumulated depreciation for the Sanitary
District and the Water Authority that was not recorded in the prior year. There was also a $(273,270) prior period
adjustment for developer deposits that overstated prior year revenues. The remaining prior period adjustment was for
unrecorded accounts payable for utility expenses.
Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances
General Fund - The Statement of Revenues, Expenditures and Changes in Fund Balances reflects $(42,328) of prior period
adjustments. Included in the adjustment is the following: $(67,625) to correct funding sources of long-term debt, $(79,964)
to correct a transfer that was between RDA funds instead of to the General Fund, $(11,278) to correct transfer that should
have done between the General Fund and Air Quality Improvement Fund, $169,745 a contribution to pay for Harrison
Street from General Fund to the Capital Projects Fund, $35,534 to correct a transfer that should have been done from the
General Fund to the Capital Projects Fund, $(6,834) to recognized deferred revenue that was recognized in previous period,
$2,750 to reclassify prior years deposits as an expense.
Housing Grants - The statement of Revenues, Expenditures and Changes in Fund Balances reflects a $(149,010) prior
period adjustment to correct receivables that were received in the prior years but the receivable was never reduced.
Redevelopment Agency Special Revenue Fund - The Statement of Revenues, Expenditures, and Changes in Fund
Balances reflects a $(138,423) prior period adjustment for unrecorded transactions related to the purchase and disposal of
land held for resale in the prior years.
Redevelopment Agency Capital Projects Fund - The Statement of Revenues, Expenditures, and Changes in Fund
Balances reflects a $(79,964) prior period adjustment for intergovernmental activity that was not recorded in the prior year.
Redevelopment Agency Debt Service Fund - The Statement of Revenues, Expenditures, and Changes in Fund Balances
reflects a $5,127 prior period adjustment for intergovernmental activity that was not recorded in the prior year.
State Gas Tax - The Statement of Revenues, Expenditures and Changes in Fund Balances reflects a $179,182 prior period
adjustment. Included in the adjustment is the following: $(90,990) of revenue received in fiscal year 2006/2007 relating to
revenue earned in 2003/2004, $(110,701) of revenue received in fiscal year 2006/2007 from the state traffic congestion for
fiscal year 04/05, $22,509 to correct a transfer that should have been done from the State Gas Tax Fund to the General
Fund.
Air Quality Improvement Fund - The Statement of Revenues, Expenditures and Changes in Fund Balances reflects a
$(32,293) prior period adjustment. Included in the adjustment is the following: $21,014 to correct a transfer that should
have been made from the Air Quality Improvement fund to the Capital Projects Fund, $11,279 to correct a transfer that
should have been made from the Air Quality Improvement Fund to the General Fund.
Local Transportation Fund - The Statement of Revenues, Expenditures and Changes in Fund Balances reflects a
$(12,709) prior period adjustment to reclassify money received as retention payable.
55
City of Coachella
16) PRIOR PERIOD ADJUSTMENT - Continued
CDBG Economic Development Fund - The Statement of Revenues, Expenditures and Changes in Fund Balances reflects
a $30,944 prior period adjustment to recognize revenue that was originally recorded as deferred revenue, but was being
recorded as expenses and deferred revenue was not being adjusted.
Avenue 48 - The Statement of Revenues, Expenditures and Changes in Fund Balances reflects $(964,117) prior period
adjustment for expenses that were posted to the Capital Projects Fund in fiscal year 2005/2006 that should have been posted
to Avenue 48/Dillion Rd grade separation fund.
Fire Protection District - The Statement of Revenues, Expenditures and Changes in Fund Balances reflects a $92,620 prior
period adjustment for grant revenue that should have been recognized in the prior fiscal year.
Capital Projects Fund - The statement of Revenues, Expenditures and Changes in Fund Balances reflects a $1,227,748
prior period adjustment. Included in the adjustment is the following: $(17,893) to correct a transfer that should have been
done from Air Quality Improvement Fund to the Capital Project Fund, but the expenses were incurred in prior years,
$(3,121) to correct a matching fund for Harrison Street paving for expenses that were incurred in prior years, $(22,509) to
correct the expense that should have been done in the Capital Projects Fund, but was done at the Gas Tax fund in prior
years, $(169,745) to correct an expense that should have be done in the Capital Project Fund, but was done at the General
Fund for the Harrison Street project from CVAG expensed in the prior years, $(17,500) to correct expenses that should have
been done by the Capital Projects Fund for the park master plan, but were done by the General fund in prior years,
$(10,402) to correct expenses that should have been done by the Capital Projects Fund for bridge planning, but were
expensed by the General fund in prior years, $156,000 to correct a transfer that should have been done in Ave 48/Dillion Rd
Grade Separation, but was expensed in the Capital Projects fund, $(14,725) to correct expenses that were originally done by
RDA PA#2 Bond Proceeds that should have been done at the Capital Projects Fund, $(36,030) are adjustment made to
transfer funds to cover deficit on capital improvement that were incurred in prior years, $(1,120,117) to correct expenses
that were originally expense in Ave 48/Dillion Rd Grade Separation, but should have been expense in the Capital Projects
Fund in prior years, (14,143) to correct expenses that were expense in the CIP Project Fund, but that needed to be expensed
in the Capital projects fund in prior years, $42,437 to correct expenses that should have been done in other projects instead
of the capital projects fund.
Capital Improvement Project Fund - The Statement of Revenues, Expenditures and Changes in Fund Balances reflects a
$(14,829) prior period adjustment to correct expenses that should have been recorded to the Capital Project fund instead of
the Capital Improvement Project fund.
56
REQUIRED SUPPLEMENTARY INFORMATION
City of Coachella
Notes to Required Supplementary Information
1.
BUDGETARY DATA
Revenues and expenditures accounted for in the governmental funds are controlled by a formal integrated budgetary
accounting system in accordance with various legal requirements which govern the City's operations.
Budgets have been adopted on a basis consistent with accounting principles generally accepted in the United States of
America (GAAP) for nearly all governmental funds.
Budgetary control is exercised at the departmental level. Accordingly, department heads are authorized to make transfers
between budgeted line items within their respective departments. Interdepartmental transfers within funds require City
Manager authorization; all other changes to the budget must be authorized by the City Council.
57
City of Coachella
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - General Fund
Budgeted Amounts
Original
Final
REVENUES
Taxes
Licenses, Permits and Fees
Fines, Forfeitures and Penalties
Contributions
Investment Income
Other Revenue
$ 9,015,793
2,917,421
2,409,872
306,849
51,500
103,000
324,418
92,899
$ 9,053,744
1,501,734
803,449
630,921
26,519
$10,445,414
2,045,347
1,043,334
307,621
106,126
$ 1,391,670
543,613
239,885
(323,300)
79,607
836,075
229,459
332,369
168,795
(503,706)
(60,664)
15,221,752
13,081,901
14,449,006
4,697,547
6,758,525
2,988,783
293,316
206,312
4,842,577
6,996,940
4,271,345
369,014
491,753
5,738,377
5,997,800
4,430,399
297,478
173,225
(895,800)
999,140
(159,054)
71,536
318,528
14,944,483
16,971,629
16,637,279
334,350
(3,889,728)
(2,188,273)
3,183,771
(2,209,934)
2,642,817
(1,321,680)
(540,954)
888,254
1,321,137
347,300
Total Revenues
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
277,269
Transfers In
Transfers Out
2,273,932
(2,274,481)
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
(549)
$
276,720
Fund Balance, Beginning of Year, As Previously Reported
973,837
$ (2,915,891)
(867,136)
11,272,181
(42,328)
Fund Balance, Beginning of Year, Restated
11,229,853
Fund Balance, End of Year
$10,362,717
58
1,367,105
1,701,455
$ 2,048,755
City of Coachella
Budget and Actual - Housing Grants Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
Total Revenues
EXPENDITURES
Current:
General Government
Capital Outlay
Total Expenditures
Over Expenditures
10,000
$
378,120
15,445
Actual
Amounts
$
557,663
61,055
Variance with
Final Budget
Positive
(Negative)
$
179,543
45,610
10,000
393,565
618,718
10,000
336,623
8,447
1,250,326
8,447
(913,703)
10,000
345,070
1,258,773
(913,703)
$
0
$
48,495
(640,055)
2,515,887
(149,010)
2,366,877
$ 1,726,822
59
225,153
$
(688,550)
City of Coachella
Budget and Actual - Development Impact Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Developer Fees
Investment Income
Total Revenues
Actual
Amounts
$ 5,918,303
27,615
$ 2,655,160
82,681
$ 2,677,110
269,873
5,945,918
2,737,841
2,946,983
EXPENDITURES
Current:
General Government
Total Expenditures
over Expenditures
$
21,950
187,192
209,142
2,450
(2,450)
(2,450)
0
0
2,450
5,945,918
2,737,841
2,944,533
206,692
3,416,592
(5,660,000)
3,125,508
(4,225,508)
(291,084)
1,434,492
(2,243,408)
(1,100,000)
1,143,408
Transfers In
Transfers Out
Variance with
Final Budget
Positive
(Negative)
0
$ 5,945,918
Fund Balance, Beginning of Year
$
494,433
1,844,533
7,444,870
$ 9,289,403
60
$ 1,350,100
City of Coachella
Budget and Actual - Revelopment Agency Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Taxes
Investment Income
Other Revenue
$
$
Total Expenditures
over Expenditures
Transfers In
Transfers Out
$ 1,633,345
82,303
(1,513)
21,206
169,046
403,029
67,390
$ 1,633,345
485,332
65,877
190,252
470,419
2,184,554
1,022,362
412,000
856,665
412,000
1,294,196
95,000
(437,531)
(317,000)
1,434,362
1,268,665
1,389,196
(120,531)
Total Revenues
EXPENDITURES
Current:
General Government
Capital Outlay
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
(1,244,110)
(798,246)
2,382,440
2,382,440
$ 1,138,330
$
795,358
1,593,604
1,105,966
(158)
(174,343)
(1,105,966)
(174,185)
1,105,808
(174,343)
(1,280,151)
307,562
621,015
11,250,625
(138,423)
11,112,202
$11,733,217
61
1,714,135
$
313,453
SUPPLEMENTARY SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds:
Supplemental Law Enforcement Services AB3229 - is used to account for revenues related to the COPS, or AB3229 funds
that are directed to the City in the allocation from the federal violent crime control and law enforcement act of 1994.
State Gas Tax - is used to account for street improvement and engineering costs. Financing is provided by the City’s
allocation of State gasoline taxes.
Air Quality Improvement - is used to account for revenues received under AB 2766. Expenditures are restricted for the use
of reduction of air pollution.
Avenue 52 Bridge - is used to account for revenues received from federal, state and other sources that are earmarked for the
planning, design and construction of the Avenue 52 grade separation.
AVA Program - is used to account for revenues received from the State for use in operational activities related to the
abandoned vehicle program.
SB821 Sidewalk Improvements - is used to account for revenue received from the Riverside County Transportation
Commission (RCTC) for all bicycle and pedestrian facilities projects.
Local Transportation - is used to account for revenue that is received from the Riverside County Transportation Commission
(RCTC) and used for projects related to their Measure “A” and “TUMF” funding programs.
Police Asset Forfeiture - is used to account for expenditures incurred in narcotics interdiction efforts. Financing is provided
by awards for the court of court of seized assets.
Avenue 48 - is used to account for expenditures relating to Avenue 48/Dillion Road grade separation capital project.
Indian Gaming Grants SB 621 - is used to account for revenues received from tribal gaming that impact the City of
Coachella and for proposed projects designed to mitigate these impacts.
CDBG Economic Development - is used to account for per capita and similar grant funds designated for use in assisting local
community service projects and selected capital projects as designated by the state granting agency. Financing is provided by
the County’s Department of Housing and Community Development who is the U.S. Department of Housing and Urban
Development grant recipient.
ECD Entitlement Program - is used to account for grant funds that are reimbursed by federal or state grant agencies that
provide funding programs that are based on selective eligibility criteria.
Police Grants - is used to account for revenues received in relation to federal and state Department of Justice grants such as
LLEBG and OTS. These funds are mostly used by the City’s police department.
Landscape and Lighting District - is used to account for special assessments levied on real property and expenditures to
provide landscaping and street lighting maintenance for certain districts formed within the City.
62
Special Revenue Funds - Continued:
Fire Protection District - is used to account for receipts collected which are restricted for expenditures related to the fire
protection district.
Education and Government Access - is used to account for revenues received from the general fund to cover the expenses of
broadcasting City Council meetings.
Capital Project Funds:
Capital Projects - is used to account for the revenues collected and the payment of capital expenditures of specific capital
projects.
Capital Improvement Projects - is used to account for the capital improvement projects which are financed through the
general fund.
Debt Service Fund:
General Leases - is used to account for the payments of principal and interest for capital leases of equipment and vehicles
used by the City and its related agencies.
63
City of Coachella
Non-major Governmental Funds
June 30, 2007
Special Revenue
Supplemental
Law Enforcement
Services AB3229
ASSETS
Accounts Receivable
Interest Receivable
Total Assets
Liabilities:
Due to Other Funds
Deferred Revenue
$
129,869
$
563
$
130,432
$
$
30,649
$
Total Liabilities
30,649
Fund Balances:
Reserved:
Encumbrances
Debt Service
Unreserved:
Special Revenue Funds, Designated for
Specific Programs
Specific Projects
Air Quality
Improvement
31,311
68,090
75
$
99,476
Avenue 52
Bridge
72,717
10,991
353
$
$
84,061
$
$
10,690
$
0
601,886
2,346
10,690
604,232
0
57,334
Total Fund Balances
State Gas
Tax
$
99,783
99,476
16,037
604,232
99,783
99,476
73,371
604,232
130,432
64
$
99,476
$
84,061
$
604,232
SB821
Sidewalk
Improvements
AVA
Program
$
$
162,699
16,204
713
$
179,616
$
$
Special Revenue
Police
Local
Asset
Transportation
Forfeiture
$
0
$
237,853
555,658
2,502
2,632
$
$
798,645
$
$
5,512
$
Indian Gaming
Grants SB621
44,046
$ 3,574,470
152
13,663
44,198
CDBG
Economic
Development
$
152,842
44,600
442
$ 3,588,133
$
197,884
$
$
935
770
0
0
5,512
770
1,128,392
38,480
1,128,392
39,415
3,341,675
179,616
179,616
$
179,616
0
$
0
$
793,133
43,428
793,133
43,428
2,459,741
44,198
$ 3,588,133
798,645
$
65
(881,934)
158,469
158,469
$
197,884
City of Coachella
Non-major Governmental Funds - Continued
June 30, 2007
Avenue 48
ASSETS
Accounts Receivable
Interest Receivable
Total Assets
Liabilities:
Accounts Payable and Accured Liabilities
Due to Other Funds
Deferred Revenue
$
$
$
0
$
$
$
2,019,183
2,019,183
Fund Balances:
Reserved:
Encumbrances
Debt Service
Unreserved:
Special Revenue Funds Designated for
Specific Programs
Specific Projects
901,228
31,805
10,883
124
$ 1,497,397
207,333
5,567
$
42,812
$ 1,710,297
$
$
332,624
754,105
10,883
1,086,729
10,883
484,558
Total Fund Balances
Landscape
and Lighting
District
$
901,228
Total Liabilities
Special Revenue
ECD
Entitlement
Police
Program
Grants
24,891
24,891
120,146
(2,019,183)
(670,059)
31,929
1,565,260
(2,019,183)
(185,501)
31,929
1,685,406
42,812
$ 1,710,297
$
0
66
$
901,228
$
Special Revenue
Fire
Education and
Protection
Government
District
Access
$
770,685
Capital Project
Capital
Capital
Improvement
Projects
Projects
Debt Service
General
Leases
$
2,737
$ 1,361,045
$ 1,207,359
107,717
21,577
$
14,038
$ 9,892,759
1,922,704
57,251
2,632
$ 1,361,045
$ 1,336,653
$
14,038
$ 11,875,346
$
$
$
9,174
$
779,859
$
2,737
$
664,923
$
530
12,160
492,303
$ 1,242,593
770
2,351,807
2,024,479
92,619
757,542
530
292,929
(270,612)
12,160
492,303
995,564
2,896,425
22,317
779,859
0
5,619,649
14,038
8,188,631
14,038
2,207
(248,218)
353,321
$
Total
Non-Major
Governmental
Funds
$
(2,052,075)
2,207
1,348,885
844,350
2,737
$ 1,361,045
$ 1,336,653
67
(1,698,754)
$
14,038
6,255,697
14,038
$ 11,875,346
City of Coachella
Non-Major Governmental Funds
Special Revenue
Supplemental
Law Enforcement
Service AB3229
REVENUES
Taxes
Special Assessments
Contributions
Investment Income
Other Revenue
$
Total Revenues
State Gas
Tax
Air Quality
Improvement
$
$
$
100,000
661,081
40,682
3,688
3,021
2,742
16,734
103,688
664,102
43,424
16,734
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Capital Outlay
Debt Service:
86,857
53,348
Total Expenditures
Over Expenditures
86,857
0
16,831
664,102
Transfers In
Transfers Out
53,348
0
(9,924)
16,734
(1,122,332)
0
(1,122,332)
16,831
(458,230)
Fund Balances, Beginning of Year,
82,952
378,524
115,588
179,182
(32,293)
557,706
83,295
Avenue 52
Bridge
82,952
$
99,783
68
$
99,476
0
0
(9,924)
$
73,371
16,734
587,498
587,498
$
604,232
SB821
Sidewalk
Improvements
AVA
Program
$
$
Special Revenue
Police
Local
Asset
Transportation
Forfeiture
$
62,598
$
Indian Gaming
Grants SB 621
$
564,649
CDBG
Economic
Development
$
3,028,942
471,064
4,769
1
38,441
1,167
87,851
3,902
67,367
1
603,090
1,167
3,116,793
474,966
435,877
309
0
309
67,367
(308)
(30,000)
0
0
0
435,877
603,090
1,167
3,116,793
39,089
(1,588,434)
(30,000)
0
37,367
(308)
142,249
308
(657,052)
(9,251)
(657,052)
(9,251)
(1,588,434)
0
(985,344)
1,167
2,459,741
29,838
42,261
0
97,687
1,791,186
(12,709)
142,249
$
179,616
308
$
0
30,944
1,778,477
$
793,133
$
42,261
0
43,428
$ 2,459,741
69
128,631
$
158,469
City of Coachella
Non-Major Governmental Funds - Continued
Avenue 48
REVENUES
Taxes
Special Assessments
Contributions
Investment Income
Other Revenue
$
Total Expenditures
Over Expenditures
Transfers In
Transfers Out
Landscape
and Ligthing
District
$
$
$
64,920
0
7,445
14,001
612
33,857
86,366
17,630
1,433,455
9,084
391,008
2,155,066
2,155,066
9,084
0
391,008
(2,155,066)
77,282
17,630
1,042,447
1,100,000
34,251
(225,666)
1,100,000
(191,415)
0
0
(1,055,066)
(114,133)
17,630
1,042,447
0
(71,368)
14,299
642,959
14,299
642,959
31,929
$ 1,685,406
Fund Balances, Beginning of Year,
(964,117)
(964,117)
(71,368)
$(2,019,183)
$ (185,501)
17,018
1,399,598
Total Revenues
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Capital Outlay
Debt Service:
Special Revenue
ECD
Entitlement
Police
Program
Grants
70
$
Special Revenue
Fire
Education and
Protection
Government
District
Access
$
371,199
$
Capital Project
Capital
Capital
Improvement
Projects
Projects
$
$
Debt Service
General
Leases
$
$
131,027
157,862
380,781
188,984
171,421
21,181
62,695
1,024,840
0
0
460,310
0
13,382
3,102,709
123,865
13,815
8,113,933
12,041
2,017
135,906
15,832
2,191,707
13,382
933,672
3,102,709
14,058
9,387,077
(1,166,867)
(13,382)
(933,672)
(2,642,399)
(14,058)
(1,273,144)
1,115,102
(427,234)
14,580
985,346
3,622,347
(120,769)
14,058
6,885,684
(4,180,738)
687,868
14,580
985,346
3,501,578
14,058
2,704,946
(478,999)
1,198
51,674
859,179
0
1,431,802
408,696
1,009
69,463
0
14,038
4,317,349
92,620
501,316
$
371,199
131,027
5,549,597
1,588,582
171,421
225,411
76,696
449,259
2,140,884
453,749
0
6,191,447
2,054,027
933,672
Total
Non-Major
Governmental
Funds
22,317
$
1,227,748
(14,829)
1,009
1,297,211
(14,829)
2,207
$ 1,348,885
$
844,350
71
506,546
$
14,038
4,823,895
14,038
$ 6,255,697
City of Coachella
Budget and Actual - Redevelopment Agency Capital Project Fund
Budgeted Amounts
Original
Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Investment Income
Other Revenue
86,202
4,837
1,246,018
4,837
64,510
1,217,544
6,234
Total Revenues
91,039
1,250,855
1,288,288
37,433
508,714
657,162
464,466
593,932
453,055
412,579
11,411
181,353
1,165,876
1,058,398
865,634
192,764
192,457
422,654
230,197
$
EXPENDITURES
Current:
General Government
Capital Outlay
Total Expenditures
over Expenditures
(1,074,837)
Transfers In
Transfers Out
$
64,510
(28,474)
1,397
812,595
(71,226)
546,850
(4,723,721)
1,210,924
(6,157,752)
664,074
(1,434,031)
741,369
(4,176,871)
(4,946,828)
(769,957)
$(3,984,414)
(4,524,174)
$ (333,468)
28,101,640
(79,964)
28,021,676
$ 23,497,502
72
$
(539,760)
City of Coachella
Budget and Actual - Redevelopment Agency Debt Service Fund
Budgeted Amounts
Original
Final
REVENUES
Taxes
Investment Income
Other Revenue
$ 5,192,307
167,069
$ 6,451,474
354,958
$ 6,533,382
258,710
681
5,359,376
6,806,432
6,792,773
(13,659)
370,899
377,535
1,226,330
(848,795)
1,401,858
5,743,804
1,146,348
1,401,858
7,480,477
1,486,380
910,690
1,825,000
2,341,595
491,168
5,655,477
(855,215)
8,662,909
10,746,250
6,303,615
4,442,635
(3,303,533)
(3,939,818)
489,158
4,428,976
8,257,322
(1,498,279)
6,839,634
(1,600,075)
418,282
(879,855)
(6,421,352)
720,220
6,759,043
5,239,559
(461,573)
(5,701,132)
$ 3,455,510
$ 1,299,741
27,585
$(1,272,156)
Total Revenues
EXPENDITURES
Current:
General Government
Debt Service:
Pass-through Agreements
Total Expenditures
over Expenditures
Transfers In
Transfers Out
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
4,735,946
5,127
Fund Balance Beginning of Year, Restated
4,741,073
$ 4,768,658
73
$
81,908
(96,248)
681
City of Coachella
Budget and Actual - Supplemental Law Enforcement Services AB3229 Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
Total Revenues
100,000
703
$
100,703
EXPENDITURES
Current:
Public Safety
Total Expenditures
over Expenditures
0
$
100,703
$
100,000
1,048
Actual
Amounts
$
100,000
3,688
0
2,640
103,688
2,640
46,519
86,857
(40,338)
46,519
86,857
(40,338)
54,529
16,831
82,952
$
74
$
101,048
Variance with
Final Budget
Positive
(Negative)
99,783
$
(37,698)
City of Coachella
Budget and Actual - State Gas Tax Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
580,000
6,571
$
566,062
3,842
Actual
Amounts
$
661,081
3,021
$
95,019
(821)
Total Revenues
586,571
569,904
Transfers Out
(619,261)
(766,883)
(1,122,332)
(355,449)
(619,261)
(766,883)
(1,122,332)
(355,449)
(32,690)
$ (196,979)
(458,230)
$ (261,251)
$
664,102
Variance with
Final Budget
Positive
(Negative)
378,524
179,182
557,706
$
75
99,476
94,198
City of Coachella
Budget and Actual - Air Quality Improvement Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
Total Revenues
EXPENDITURES
Current:
Public Works
Total Expenditures
over Expenditures
$
37,000
2,263
$
10,769
1,314
Actual
Amounts
$
40,682
2,742
Variance with
Final Budget
Positive
(Negative)
$
29,913
1,428
39,263
12,083
43,424
31,341
14,800
82,075
53,348
28,727
14,800
82,075
53,348
28,727
(69,992)
(9,924)
24,463
$
115,588
(32,293)
83,295
$
76
73,371
$
60,068
City of Coachella
Budget and Actual - Avenue 52 Bridge Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
$
Total Revenues
0
Variance with
Final Budget
Positive
(Negative)
Actual
Amounts
6,911
$
6,911
16,734
$
16,734
9,823
9,823
EXPENDITURES
0
Total Expenditures
over Expenditures
0
$
0
$
0
0
6,911
16,734
587,498
$
77
604,232
0
$
9,823
City of Coachella
Budget and Actual - AVA Program Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
59,000
662
$
17,279
10,769
Actual
Amounts
$
62,598
4,769
Variance with
Final Budget
Positive
(Negative)
$
45,319
(6,000)
Total Revenues
59,662
28,048
67,367
Transfers Out
(30,000)
(30,000)
(30,000)
0
(30,000)
(30,000)
(30,000)
0
(1,952)
37,367
Net Change in Fund Balance
$
29,662
$
142,249
$
78
179,616
39,319
$
39,319
City of Coachella
Budget and Actual - SB821 Sidewalk Improvements Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
3
Total Revenues
$
3
3
$
1
$
0
$
3
$
(2)
309
(309)
530
530
309
221
(527)
(308)
308
$
79
(2)
1
530
Total Expenditures
over Expenditures
Actual
Amounts
3
EXPENDITURES
Public Works
Capital Outlay
Variance with
Final Budget
Positive
(Negative)
0
$
223
City of Coachella
Budget and Actual - Local Transportation Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
Total Revenues
721,000
8,572
$
729,572
Variance with
Final Budget
Positive
(Negative)
Actual
Amounts
188,571
16,638
$
205,209
564,649
38,441
603,090
$
376,078
21,803
397,881
EXPENDITURES
0
Total Expenditures
over Expenditures
0
0
0
0
729,572
205,209
603,090
397,881
Transfers Out
0
$
729,572
$
(1,588,434)
(1,588,434)
0
(1,588,434)
(1,588,434)
205,209
(985,344)
Fund Balances, Beginning of Year, As Previously Reported
1,791,186
(12,709)
1,778,477
$
80
793,133
$ 1,986,315
City of Coachella
Budget and Actual - Police Asset Forfeiture Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
Total Revenues
377
$
377
Variance with
Final Budget
Positive
(Negative)
Actual
Amounts
529
$
529
1,167
$
1,167
638
638
EXPENDITURES
0
Total Expenditures
over Expenditures
0
$
377
$
0
0
529
1,167
42,261
$
81
43,428
0
$
638
City of Coachella
Budget and Actual - Indian Gaming Grants SB 621 Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
Total Revenues
0
EXPENDITURES
Current:
Public Works
Actual
Amounts
$ 2,947,729
24,571
$ 3,028,942
87,851
2,972,300
3,116,793
3,341,675
Total Expenditures
0
over Expenditures
0
3,341,675
(369,375)
Transfers Out
Variance with
Final Budget
Positive
(Negative)
$
0
0
0
$ (369,375)
144,493
0
3,341,675
3,116,793
3,486,168
(657,052)
(657,052)
(657,052)
(657,052)
2,459,741
$ 2,459,741
82
81,213
63,280
3,341,675
0
$
$ 2,829,116
City of Coachella
Budget and Actual - CDBG Economic Development Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
$
Total Revenues
over Expenditures
338,741
1,412
$
$
132,323
2,490
340,153
474,966
134,813
659,013
368,000
370,943
435,877
(64,934)
0
1,027,013
370,943
435,877
(64,934)
(1,027,013)
(30,790)
39,089
69,879
(9,251)
(9,251)
(9,251)
(9,251)
Transfers Out
471,064
3,902
0
EXPENDITURES
Current:
General Government
Capital Outaly
Total Expenditures
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
0
$(1,027,013)
0
$
(30,790)
29,838
97,687
30,944
128,631
$
83
158,469
$
60,628
City of Coachella
Budget and Actual - Avenue 48 Special Revenue Fund
Budgeted Amounts
Original
Final
Variance with
Final Budget
Positive
(Negative)
Actual
Amounts
REVENUES
$
Total Revenues
$
0
over Expenditures
0
0
18,529
2,155,066
(2,136,537)
0
18,529
2,155,066
(2,136,537)
0
(18,529)
(2,155,066)
(2,136,537)
1,100,000
1,100,000
1,100,000
1,100,000
(1,055,066)
(1,036,537)
Operating Transfers In
0
$
$
0
EXPENDITURES
Capital Outaly
Total Expenditures
$
0
0
$
(18,529)
0
(964,117)
(964,117)
$ (2,019,183)
84
City of Coachella
Budget and Actual - ECD Entitlement Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
Other Revenue
$
Total Revenues
384,944
4,705
369,205
7,445
$
64,920
7,445
14,001
$ (304,285)
0
14,001
389,649
376,650
86,366
(290,284)
34,652
608,408
9,084
635,915
25,568
608,408
635,915
643,060
9,084
633,976
(246,266)
(266,410)
77,282
343,692
(200,000)
34,251
(225,666)
34,251
(25,666)
0
(200,000)
(191,415)
8,585
$ (246,266)
$ (466,410)
(114,133)
EXPENDITURES
Current:
Public Works
Capital Outlay
Total Expenditures
over Expenditures
Transfers In
Transfers Out
$
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
(71,368)
$ (185,501)
85
$
352,277
City of Coachella
Budget and Actual - Police Grants Special Revenue Fund
Actual
Amounts
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
Total Revenues
EXPENDITURES
Current:
Public Safety
Capital Outlay
Total Expenditures
over Expenditures
$
159,500
10,883
$
159,500
10,883
Variance with
Final Budget
Positive
(Negative)
$
17,018
612
$ (142,482)
(10,271)
17,630
(152,753)
170,383
170,383
16,183
4,200
16,183
4,200
20,383
20,383
0
150,000
17,630
150,000
$
16,183
4,200
14,299
$
86
31,929
20,383
$ (132,370)
City of Coachella
Budget and Actual - Landscape and Lighting District Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Special Assessments
Investment Income
$
Total Revenues
EXPENDITURES
Current:
Public Works
Total Expenditures
over Expenditures
$
Actual
Amounts
251,350
2,767
$ 1,083,559
8,160
$ 1,399,598
33,857
254,117
1,091,719
1,433,455
193,790
384,571
391,008
(6,437)
193,790
384,571
391,008
(6,437)
707,148
1,042,447
60,327
$
642,959
$ 1,685,406
87
Variance with
Final Budget
Positive
(Negative)
$
316,039
25,697
341,736
$
335,299
City of Coachella
Budget and Actual - Fire Protection District Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Taxes
Special Assessments
Investment Income
Other Revenue
$
167,139
5,618
122,533
12,488
12,481
54,960
371,199
380,781
188,984
21,181
62,695
295,290
624,079
1,024,840
400,761
2,276,112
10,200
2,337,740
2,054,027
283,713
54,747
13,596
72,768
16,835
123,865
13,815
2,354,655
2,427,343
2,191,707
235,636
(2,059,365)
(1,803,264)
(1,166,867)
636,397
2,241,373
(182,008)
2,103,052
(244,631)
1,115,102
(427,234)
(987,950)
(182,603)
2,059,365
1,858,421
687,868
(1,170,553)
(478,999)
$ (534,156)
Total Revenues
EXPENDITURES
Current:
Public Safety
Capital Outlay
Debt Service:
Total Expenditures
over Expenditures
Transfers In
Transfers Out
$
0
$
$
544,150
Actual
Amounts
$
Variance with
Final Budget
Positive
(Negative)
55,157
408,696
92,620
501,316
$
88
22,317
$ (172,951)
380,781
176,496
8,700
7,735
(51,097)
3,020
City of Coachella
Budget and Actual - Education and Government Access Special Revenue Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
$
Total Revenues
EXPENDITURES
Current:
General Government
Total Expenditures
over Expenditures
Transfers In
$
10
Variance with
Final Budget
Positive
(Negative)
Actual
Amounts
$
$
$
10
0
0
0
14,579
15,018
13,382
1,636
14,579
15,018
13,382
1,636
(14,569)
(15,018)
(13,382)
1,636
14,569
14,580
14,580
0
14,569
14,580
14,580
0
0
$
(438)
1,198
1,009
$
89
0
2,207
$
1,636
City of Coachella
Budget and Actual - Capital Projects Capital Project Fund
Budgeted Amounts
Original
Final
REVENUES
Contributions
Total Revenues
$ 3,323,060
3,323,060
EXPENDITURES
Current:
Public Works
Capital Outlay
Total Expenditures
over Expenditures
0
3,323,060
$
Actual
Amounts
44,227
100,000
$
(44,227)
(100,000)
144,227
0
88,994
1,719,726
933,672
88,994
786,054
1,808,720
933,672
875,048
(1,664,493)
(933,672)
730,821
985,346
985,346
Transfers In
Variance with
Final Budget
Positive
(Negative)
(144,227)
0
0
985,346
985,346
$ 3,323,060
$(1,664,493)
51,674
$ 1,716,167
69,463
1,227,748
1,297,211
$ 1,348,885
90
City of Coachella
Budget and Actual - Capital Improvements Projects Capital Project Fund
Budgeted Amounts
Original
Final
REVENUES
Investment Income
Contributions
$
$
$
131,027
157,862
171,421
131,027
157,862
(11,094)
171,421
11,094
460,310
449,216
2,427,761
3,102,709
(674,948)
0
2,427,761
3,102,709
(674,948)
0
(2,416,667)
(2,642,399)
(225,732)
8,502,009
3,622,347
(120,769)
(4,879,662)
(120,769)
8,502,009
3,501,578
(5,000,431)
$ 6,085,342
859,179
$(5,226,163)
11,094
Total Revenues
0
EXPENDITURES
Capital Outlay
Total Expenditures
over Expenditures
Transfers In
Transfers Out
Actual
Amounts
0
$
(14,829)
(14,829)
$
91
Variance with
Final Budget
Positive
(Negative)
844,350
$
City of Coachella
Budget and Actual - General Leases Debt Service Fund
Budgeted Amounts
Original
Final
Variance with
Final Budget
Positive
(Negative)
Actual
Amounts
REVENUES
$
Total Revenues
EXPENDITURES
Debt Service:
Total Expenditures
over Expenditures
Transfers In
$
$
$
$
0
0
0
12,041
2,017
11,756
2,301
12,041
2,017
(285)
284
14,058
14,057
14,058
(1)
(14,058)
(14,057)
(14,058)
(1)
14,058
14,058
14,058
0
14,058
14,058
14,058
0
1
0
0
$
14,038
$
92
14,038
0
$
(1)
AGENCY FUNDS
Self-Insured Dental Plan - is used to account for any claims that are not otherwise covered by its dental indemnity plan for City
employees.
General Deposits Fund - is used to account for deposits and disbursements to and from the Rabo Bank payroll account and also
to obtain future services from citizens and others who have an agreement with the City. Deposits are reduced by disbursements
and/or refunds to the depositors when the cost of the service is determined.
Public Schools Capital Facilities Fund - is used to account for the assets held on behalf of the public schools located within the
city limits of the City of Coachella for future capital improvements projects related to one or more of the facilities.
Flood Control Capital Facilities Fund - is used to account for the assets held on behalf of the Coachella Valley Water District
for storm drain and other capital projects.
Employee Flex Plan Deposits - is used to account for reserves held on behalf of employees on supplementary insurance plan.
Employees are reimbursed for out-or pocket medical expenses when claims are submitted.
JPA - Waste Transfer - is used to account for the assets held on behalf of the City of Indio for construction and demolition
waste proceeds from Burrtec Waste Industries, Inc.
93
City of Coachella
Combining Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2007
General
Deposits
Fund
Self Insured
Dental Plan
ASSETS
Interest Receivable
Other Receivables
Total Assets
Claims Payable
Deposits Payable
Total Liabilities
$
15,362
19,114
60
$
756,590
Public Schools
Capital Facilities
Fund
$
64,911
$
34,536
$
$
34,536
$
756,590
$
64,911
$
64,911
6,000
750,590
$
94
34,536
$
756,590
$
64,911
Flood Control
Capital Facilities
Fund
$
825,522
JPA Waste
Transfer
Fund
Employee Flex
Plan Deposits
$
922
$
2,197
$
827,719
$
343,880
Total Agency
Funds
$
1,942,276
19,114
3,350
130,278
$
2,095,018
$
34,536
892,630
6,922
1,160,930
$
2,095,018
1,093
65,367
$
922
$
$
410,340
$
827,719
922
410,340
$
827,719
$
922
$
410,340
95
City of Coachella
Statement of Changes in Fiduciary Assets and Liabilities
Self Insured Dental Plan
Beginning
Balance
ASSETS
Interest Receivable
Total Assets
Total Liabilities
$
Additions
14,937
20,259
58
$
$
35,254
$
$
35,254
$
$
35,254
$
96
Ending
Balance
Deletions
439
$
14
1,145
58
$
15,362
19,114
60
$
1,217
$
34,536
$
718
$
34,536
$
718
$
34,536
60
499
0
City of Coachella
General Deposits Fund
Beginning
Balance
ASSETS
Other Receivables
Total Assets
Claims Payable
Deposits Payable
Total Liabilities
Additions
Deletions
Ending
Balance
$
962,266
$ 6,074,841
2,882
$ 6,280,517
2,882
$
756,590
$
962,266
$ 6,077,723
$ 6,283,399
$
756,590
$
90,741
871,525
$ 6,515,395
1,226,136
$ 6,600,136
1,347,071
$
6,000
750,590
$
962,266
$ 7,741,531
$ 7,947,207
$
756,590
97
City of Coachella
Public Schools Capital Facilities Fund
Beginning
Balance
ASSETS
Other Receivables
Total Assets
Total Liabilities
$
36,442
Additions
$
Ending
Balance
Deletions
590,095
64,911
$
626,537
$
64,911
$
36,442
$
655,006
$
626,537
$
64,911
$
36,442
$
665,367
$
636,898
$
64,911
$
36,442
$
665,367
$
636,898
$
64,911
98
City of Coachella
Flood Control Capital Facilities Fund
Beginning
Balance
ASSETS
Interest Receivable
Total Assets
Total Liabilities
$
Additions
548,883
1,399
$
$
550,282
$
$
Deletions
276,639
2,197
$
$
278,836
$
550,282
$
277,437
550,282
$
277,437
99
Ending
Balance
$
825,522
2,197
$
827,719
$
$
827,719
$
$
827,719
1,399
1,399
City of Coachella
Employee Flex Plan Deposits Fund
Beginning
Balance
ASSETS
Total Assets
Claims Payable
Total Liabilities
Additions
Ending
Balance
Deletions
$
776
$
19,097
$
18,951
$
922
$
776
$
19,097
$
18,951
$
922
$
776
$
38,047
$
37,901
$
922
$
776
$
38,047
$
37,901
$
922
100
City of Coachella
JPA Waste Transfer Fund
Beginning
Balance
ASSETS
Interest Receivable
Other Receivables
Total Assets
Deposits Payable
Total Liabilities
Additions
Ending
Balance
Deletions
$
39,835
548
20,078
$
345,511
1,093
65,367
$
41,466
548
20,078
$
343,880
1,093
65,367
$
60,461
$
411,971
$
62,092
$
410,340
$
60,461
$
357,586
$
7,707
$
410,340
$
60,461
$
357,586
$
7,707
$
410,340
101
STATISTICAL SECTION
City of Coachella
Net Assets by Component
Last Five Fiscal Years
(accrual basis of accounting)
2003
2004
Governmental activities:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
$ 10,033,810
(8,749,032)
$ 10,566,657
4,897,449
Total governmental activities net assets
$ 1,284,778
Business-type activities:
net of related debt
Restricted
Unrestricted
$
Total business-type activities net assets
Fiscal Year
2005
2006
2007
$ 16,345,742
4,744,259
$ 21,094,484
47,977,285
(32,362,804)
$ 69,625,226
4,782,696
8,905,534
$ 15,464,106
$ 21,090,001
$ 36,708,965
$ 83,313,456
$ (2,772,962)
5,303,197
2,731,916
$ 9,400,692
6,187,555
(5,612,269)
$ 15,907,813
14,656,111
(16,521,062)
$ 36,259,222
9,855,031
3,027,035
$ 8,884,454
$
5,262,151
$ 9,975,978
$ 14,042,862
$ 49,141,288
Primary government:
net of related debt
Restricted
Unrestricted
$ 9,876,959
5,293,425
(5,001,152)
$
7,793,695
5,303,197
7,629,365
$ 25,746,434
6,187,555
(868,010)
$ 37,002,297
62,633,396
(48,883,866)
$ 105,884,448
14,637,727
11,932,569
Total primary government net assets
$ 10,169,232
$ 20,726,257
$ 31,065,979
$ 50,751,827
$ 132,454,744
(156,851)
5,293,425
3,747,880
The City of Coachella implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
102
City of Coachella
Changes in Net Assets
2007
$ 8,426,030
4,656,197
1,880,710
218,301
1,174,295
1,300,793
1,927,847
$ 9,640,173
4,898,669
2,195,931
162,680
1,130,745
1,355,416
$ 12,956,139
8,185,639
6,382,829
297,478
2,591,955
$ 14,168,579
$ 19,584,173
$ 19,383,614
$ 30,414,040
1,000
4,255,450
753,251
$ 5,001,000
5,039,036
892,446
$
$
$
Total business-type activities net expenses $ 5,009,701
$ 10,932,482
$ 6,355,431
$ 7,300,187
$ 8,834,345
Total primary government expenses
$ 16,535,807
$ 25,101,061
$ 25,939,604
$ 26,683,801
$ 39,248,385
$ 1,738,017
2,618,170
1,353,920
$ 3,536,238
2,072,536
6,025,655
$ 7,438,412
2,199,962
1,770,267
$ 11,260,751
4,760,299
68,274
$ 3,527,329
7,455,122
3,259,887
$ 5,710,107
$ 11,634,429
$ 11,408,641
$ 16,089,324
$ 14,242,338
$ 4,855,667
$ 6,968,177
$ 8,809,903
$ 11,998,585
$ 10,176,924
$ 10,565,774
$ 18,602,606
$ 20,218,544
$ 28,087,909
$ 24,419,262
$ (5,815,999)
(154,034)
$ (2,534,150)
(3,964,305)
$ (8,175,532)
2,454,472
$ (3,294,290)
4,698,398
$ (16,171,702)
1,342,579
$ (5,970,033)
$ (6,498,455)
$ (5,721,060)
$ 1,404,108
$ (14,829,123)
Total governmental activities expenses
Business-type activities
Operating transfers in and out (net)
Operating expenses
Non-operating expenses
Program Revenues
Operating grants and contributions
Capital grants and contributions
Total governmental activities
program revenue
Business Type Activities
Total primary government
program revenues
Net revenues (expenses):
Governmental activities
Total net revenues (expenses)
2004
$ 5,019,776
2,438,945
1,840,019
282,077
656,998
1,288,291
$ 5,546,488
3,329,250
2,456,293
177,507
1,382,333
1,276,708
-
$ 11,526,106
$
Fiscal Year
2005
2006
Expenses:
General government
Public safety
Public works
Parks and recreation
Payments to other agencies
Interest on long-term debt
Transfers
2003
103
5,503,551
851,880
6,388,056
912,131
8,769,771
64,574
City of Coachella
Changes in Net Assets (Continued)
2003
General Revenues
Licenses and permits
Taxes:
Property taxes
Other taxes
Other revenues
Gain on insurance reimbursement
Gain on sale of land
Transfers
Fiscal Year
2005
4,034,206
3,876,387
488,209
219,553
83,877
1,000
4,330,608
4,146,617
662,141
185,040
5,001,000
6,284,450
3,853,406
2,124,611
579,116
206,142
-
$ 9,715,738
$ 16,620,960
$ 13,916,768
$ 15,347,623
$ 19,495,256
$
155,484
41,650
108,771
-
$
156,460
44,245
141,297
-
$
$
$
Total business-type activities net
$
305,905
$
342,002
$ 2,090,328
$ 1,209,876
$ 3,645,688
$ 10,021,643
$ 16,962,962
$ 16,007,096
$ 16,557,499
$ 23,140,944
$ 3,899,739
151,871
$ 14,086,810
(3,622,303)
$ 5,741,236
4,544,800
$ 12,053,333
5,908,274
$ 3,323,554
4,988,267
$ 4,051,610
$ 10,464,507
$ 10,286,036
$ 17,961,607
$ 8,311,821
Changes in Net Assets
Governmental activities
869,043
-
124,846
37,635
1,927,847
The City of Coachella implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
104
$
989,493
2007
$ 2,295,554
-
Other taxes
Other revenues
Transfers
$
2006
1,012,506
Total governmental activities
$
2004
$
8,859,051
4,923,454
359,950
986,665
(770,990)
400,831
38,055
770,990
-
14,572,407
4,410,933
318,283
2,850,294
(2,656,661)
81,007
908,020
2,656,661
City of Coachella
(modified accrual basis of accounting)
2003
General Fund:
Reserved
Unreserved
Total general fund
All other government funds:
Reserved
Unreserved, reported in:
Special revenue funds
Capital project funds
2004
Fiscal Year
2005
2006
2007
$ 1,231,982
1,351,388
$
1,535,312
2,270,521
$
1,755,469
4,775,374
$ 1,617,653
9,654,528
$ 1,251,604
9,111,113
$ 2,583,370
$
3,805,833
$
6,530,843
$ 11,272,181
$ 10,362,717
$ 5,376,291
$
4,029,551
$
4,807,687
$ 17,047,731
$ 19,072,608
9,241,332
10,370,501
11,541,834
10,224,567
14,194,605
27,123,981
17,626,900
20,571,791
$ 23,641,384
$ 26,574,088
$ 58,366,317
$ 57,271,299
3,112,274
(2,182,986)
Total all other government fund $ 6,305,579
The City of Coachella has elected to show only five years of data on this schedule.
105
City of Coachella
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
2003
Revenues:
Taxes
Property tax increment
Licenses and permits
Fines and forfeits
Other income
Total revenues
Expenditures:
Current:
General government:
Departmental
Non-departmental
Public safety
Public works
Parks and recreation
Payment to other agencies
Capital outlays
Debt service:
Bond issue costs
Principal retirements
Interest and fiscal changes
Capital outlays
Fiscal Year
2005
2004
3,756,211
3,991,338
1,207,374
11,788,055
1,283,425
182,688
185,040
860,258
2007
5,402,265
4,237,821
3,009,837
5,834,304
3,224,975
278,193
485,453
2,646,419
$ 6,618,247
5,431,925
3,290,175
7,866,289
6,572,347
387,834
872,244
1,168,876
$ 18,983,340
2,045,347
6,277,896
1,174,361
307,621
2,850,294
4,755,396
$ 2,958,051
3,544,457
615,456
6,633,852
1,482,197
205,357
213,549
681,756
$
$ 16,334,675
$ 23,254,389
$ 25,119,267
$ 32,207,937
$ 36,394,255
$ 1,881,558
3,531,067
2,847,491
1,617,591
339,159
656,998
6,259,930
$
$
2,071,157
5,968,831
4,252,008
1,875,568
218,301
1,174,295
-
$ 2,529,267
5,952,642
4,898,669
2,195,931
162,680
1,130,745
-
$ 10,413,993
8,138,684
4,884,148
297,478
6,880,698
1,789,569
3,571,096
3,289,212
2,044,322
173,714
1,382,333
3,714,839
$
2006
378,619
1,123,031
-
114,213
392,335
1,115,336
-
179,417
1,484,577
1,207,049
5,265,524
164,436
3,250,296
1,329,765
4,303,778
910,690
1,960,906
2,357,427
-
Total expenditures
$ 18,635,444
$ 17,586,969
$ 23,696,727
$ 25,918,209
$ 35,844,024
Excess (deficiency) of revenues
over (under) expenditures
$ (2,300,769)
$
5,667,420
$
$ 6,289,728
$
$
$
2,419,871
5,000,000
(26,850)
8,310,205
(3,309,205)
Other financing sources (uses):
Proceeds from loan
Proceeds from bond debt
Discount on bond debt
Premium on bond debt
Payment to bond agent
Gain on sale of land
Transfers in
Transfers out
Total other financing sources (uses)
Extraordinary item:
Insurance recovery-building
Net change in fund balances
Debt service as a percentage of
non-capital expenditures
$
$
83,877
6,443,683
(6,609,204)
(81,644)
-
$ (2,382,413)
1,422,540
14,465,000
(655,617)
54,763
(7,838,700)
17,971,517
(19,899,361)
$ 12,394,021
$
4,097,602
$
-
$
290,146
$ 18,061,441
$
5,810,288
13.8%
12.3%
The City of Coachella has elected to show only five years of data on this schedule.
106
33,845,000
(1,376,945)
55,430,862
(56,201,852)
17.3%
550,231
14,283,215
(16,939,876)
$ 31,697,065
$ (2,656,661)
$
$
-
$ 37,986,793
27.1%
-
$ (2,106,430)
18.2%
City of Coachella
Schedule of Net Assessed Value
Last Ten Fiscal Years
Fiscal Year
End
Gross Assessed
Value
Less Property
Exemptions
Net Taxable
Value
Less
Homeowners
Exemption
Net Assessed
Value
Total Direct
Tax Rate
Percent of
Assessed Value
Growth
1998
434,044,235
23,361,663
410,682,572
12,199,934
398,482,638
6.22
2.15%
1999
443,999,360
23,857,952
420,141,408
12,343,032
407,798,376
6.30
2.34%
2000
448,412,836
24,203,221
424,209,615
12,197,062
412,012,553
6.27
1.03%
2001
486,817,887
24,518,383
462,299,504
12,218,317
450,081,187
6.60
9.24%
2002
518,929,607
36,613,512
482,316,095
12,316,944
469,999,151
6.69
4.43%
2003
563,976,091
37,114,840
526,861,251
12,600,169
514,261,082
6.77
9.42%
2004
633,683,194
44,960,946
588,722,248
13,236,128
575,486,120
6.90
11.91%
10.73%
2005
740,838,899
90,131,233
650,707,666
13,456,266
637,251,400
6.51
2006
1,025,752,377
93,172,403
932,579,974
14,462,424
918,117,550
5.61
44.07%
2007
1,632,382,708
104,390,591
1,527,992,117
16,443,215
1,511,548,902
4.73
64.64%
Source: Riverside County Assessor's Office
HDL Coren & Cone
107
City of Coachella
History of Assessed Net Taxable Property Values
(in thousands of dollars)
Category
1998
1999
2000
2001
2002
2003
2004
2005
2006
$ 166,886
$ 175,778
$ 172,923
$ 193,193
$ 205,977
$ 235,893
$ 284,174
$ 299,928
$ 500,153
Commercial
48,295
49,675
50,291
50,574
55,630
54,728
57,058
58,259
65,183
78,400
Industrial
55,556
56,476
58,918
60,631
62,335
68,526
71,983
74,463
78,161
83,660
Dry Farm
7,765
9,162
9,514
9,458
10,405
11,413
11,393
12,873
13,533
18,234
948
701
773
788
660
744
1,875
2,479
2,011
2,080
Irrigated
9,493
9,634
9,077
9,298
9,551
15,010
13,989
15,525
20,615
44,224
Miscellaneous
Residential
Institutional
2007
$
799,191
1,452
1,271
546
392
632
580
577
573
565
884
Recreational
-
153
156
159
162
165
434
443
176
2,988
Vacant Land
391,025
61,577
57,631
58,328
59,440
60,312
67,222
75,486
103,712
192,513
SBE Nonunitary
1,307
1,406
1,237
1,482
1,237
1,223
967
1,062
1,028
944
Possessory Int.
5,810
4,235
5,019
5,391
4,936
5,184
8,746
4,807
4,888
4,914
Unsecured
22,661
24,688
29,689
43,169
40,769
35,624
37,325
44,225
45,729
65,985
Unknown
30,294
29,790
29,002
29,829
30,966
31,801
9,542
33,437
9,053
35,463
$ 412,044
$ 420,600
$ 425,473
$ 463,804
$ 483,572
$ 528,113
$ 573,549
$ 651,786
$ 933,608
$ 1,527,992
Totals
Total Direct Rate
0.32219%
0.62985%
0.62728%
0.65995%
0.66933%
0.67652%
0.68972%
0.65061%
0.56105%
0.47329%
Note:
In 1978 the voters of the State of California passed Proposition13 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 the property is sold to a new owner. At that point the new assessed value is reassessed based on the
added value of the construction or at the purchase price (market value) of the property sold. The assess 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.
Exepmptions not included in total.
HDL Coren & Cone
108
City of Coachella
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
City Direct Rates:
City Basic Rate
Coachella Fire Protection
$ 0.077
0.054
$ 0.077
0.054
$ 0.077
0.054
$ 0.077
0.054
$ 0.077
0.054
$ 0.077
0.054
$ 0.077
0.054
$ 0.077
0.054
$ 0.077
0.054
$ 0.118
0.054
Total City Direct Rate
$ 0.131
$ 0.131
$ 0.131
$ 0.131
$ 0.131
$ 0.131
$ 0.131
$ 0.131
$ 0.131
$ 0.172
$ 0.032
0.013
0.003
0.019
0.000
0.432
0.012
0.025
0.025
0.196
0.070
0.003
0.038
$ 0.032
0.013
0.003
0.019
0.000
0.432
0.012
0.025
0.025
0.196
0.070
0.003
0.038
$ 0.032
0.013
0.003
0.019
0.000
0.432
0.012
0.025
0.025
0.196
0.070
0.003
0.038
$ 0.032
0.013
0.003
0.019
0.000
0.432
0.012
0.025
0.025
0.196
0.070
0.003
0.038
$ 0.032
0.013
0.003
0.019
0.000
0.432
0.012
0.025
0.025
0.196
0.070
0.003
0.038
$ 0.032
0.013
0.003
0.019
0.000
0.432
0.012
0.025
0.025
0.196
0.070
0.003
0.038
$ 0.032
0.013
0.003
0.019
0.000
0.432
0.012
0.025
0.025
0.196
0.070
0.003
0.038
$ 0.032
0.013
0.003
0.019
0.000
0.432
0.012
0.025
0.025
0.196
0.070
0.003
0.038
$ 0.032
0.013
0.003
0.019
0.000
0.432
0.012
0.025
0.025
0.196
0.070
0.003
0.038
$ 0.032
0.063
0.015
0.004
0.022
0.000
0.391
0.030
0.029
0.198
0.081
0.005
0.044
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.086
$ 0.056
0.021
-
$ 0.052
0.021
-
$ 0.052
0.021
-
$ 0.049
0.021
-
$ 0.045
0.021
-
$ 0.037
0.021
-
$ 0.033
0.021
-
$ 0.031
0.021
0.020
$ 0.060
0.021
0.020
$ 0.060
0.021
0.020
$ 0.077
$ 0.073
$ 0.073
$ 0.070
$ 0.066
$ 0.058
$ 0.053
$ 0.071
$ 0.100
$ 0.101
$ 1.077
$ 1.073
$ 1.073
$ 1.070
$ 1.066
$ 1.058
$ 1.053
$ 1.071
$ 1.100
$ 1.187
Overlapping Rates:
Proposition 13 Rate:
County Storm Water
Coachella Sanitary Anx
Mosquito Abatement
Public Cemetery
Recreation & Park
Resource Conservation
Unified School District
Water Improvement District 1
County Water
County Free Library
County General
Desert Community College
Regional Park and Open Space
School Equalization Aid
Total Proposition 13 Rate
Voter Approved Rate:
Unified School District
Water District
Desert Community College
Total Voter Approved Rate
Total Tax Rate
Note:
In 1978, California voters passed Proposition 13 which sets 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, voters approved additional assessments for bond repayments to the Coachella Unified School District,
Coachella Valley Water District, and Desert Community College District.
HDL Coren & Cone
109
City of Coachella
Principal Property Taxpayers
Current Year and Ten Years Ago
2007
Taxpayer
Desert Highlands Associates
Esterling Defence (formerly Armtec Industries)
Cretaceous Ventures
Abesud Halum Trust
Coachella Land
Sun World Packing Corporation
Dillion Road Associates
Anthony Vineyards Inc.
MF JK Partnership
Glenroy Capital
Burns Fron Inc.
Vons Companies Inc
Rancho Coachella Properties
Kmart Corporation
Mitsui Fudosan Inc.
Coachella Investors
Sun World Inc.
Totals
Taxable
Assessed Value
27,553,861
22,096,356
15,333,300
14,283,322
13,730,563
11,362,046
11,220,000
10,488,977
9,610,485
9,063,100
-
Rank
1
2
3
4
5
6
7
8
9
10
144,742,010
1998
Percentage of
Total Taxable
Assessed Value
Taxable
Assessed
Value
1.8%
1.4%
1.0%
0.9%
0.9%
0.7%
0.7%
0.7%
0.6%
0.6%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
13,729,101
8,676,906
4,921,689
9,692,039
6,994,213
7,058,704
4,755,000
4,753,456
5,240,298
4,651,600
9.5%
70,473,006
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
HDL Coren & Cone
110
Rank
1
3
6
2
4
5
7
8
9
10
Percentage of
Total Taxable
Assessed Value
0.0%
3.3%
0.0%
0.0%
0.0%
2.1%
0.0%
0.0%
1.2%
0.0%
2.4%
1.7%
1.7%
1.2%
1.2%
1.3%
1.1%
17.2%
City of Coachella
Sales Tax by Economic Category and Segment
Economic Category
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Transportation
Food Products
Business to Business
Construction
General Retail
Miscellaneous
$ 379,177
229,341
207,423
96,337
58,694
5,184
$ 405,409
276,712
202,759
106,410
64,987
3,051
$ 464,977
325,427
250,114
147,734
77,948
4,705
$ 633,897
357,259
262,617
175,598
86,963
4,805
$ 691,583
363,360
240,494
165,319
92,055
3,581
$ 772,479
383,007
275,173
162,665
99,466
3,207
$ 864,596
373,826
329,116
266,085
138,353
3,220
$ 969,274
425,829
414,563
350,322
159,880
3,181
$ 1,171,167
593,242
559,555
510,075
184,417
3,475
$ 1,143,917
794,777
511,693
381,589
190,922
5,116
Totals
$ 976,156
$ 1,059,328
$ 1,270,905
$ 1,521,139
$ 1,556,392
$ 1,695,997
$ 1,975,196
$ 2,323,049
$ 3,021,931
$ 3,028,014
Service Stations
Building Materials - Wholesale
Energy Sales
Food Markets
Restaurants
Auto Sales - Used
Auto Parts / Repair
Chemical Products
Furniture / Appliances
Miscellaneous Retail
Apparel Stores
Drug Stores
Light Industry
Building Materials - Retail
Florist / Nursery
Recreation Products
Department Stores
Liquor Stores
Leasing
Miscellaneous Other
Food Processing Equipment
Business Services
Health and Government
Auto Sales - New
Closed Account Adjustment
Electronic Equipment
Heavy Industry
Miscellaneous Vehicle Sales
Office Equipment
$ 280,115
94,677
139,352
115,332
93,844
27,941
71,990
46,097
8,505
10,914
19,729
16,012
12,807
1,660
3,096
14
424
19,929
2,981
3,982
236
531
782
420
(33)
5,659
(869)
29
$ 287,015
104,803
137,873
163,587
93,630
41,342
77,272
40,805
10,917
12,745
20,748
16,144
12,329
1,607
3,751
207
475
19,251
6,338
2,384
244
(302)
667
(9)
5,714
(220)
11
$ 336,408
144,690
188,897
189,426
121,148
48,688
79,881
47,384
13,762
18,400
22,203
16,409
4,665
3,044
4,580
624
1,970
14,630
4,842
4,068
223
4
468
169
4,322
-
$ 488,827
173,292
195,653
194,129
156,008
56,890
88,180
45,048
11,744
22,498
23,510
18,695
6,469
2,306
5,908
803
3,805
6,947
3,831
4,296
175
2,513
509
9,103
-
$ 524,807
163,955
150,689
184,114
173,846
74,263
92,513
47,498
11,035
23,225
23,824
20,552
7,716
1,364
6,074
2,303
5,042
5,215
5,432
2,939
185
64
642
29,095
-
$ 597,138
161,662
172,407
186,739
186,223
77,070
98,271
52,917
11,681
25,432
24,632
22,745
9,079
1,003
6,252
2,908
5,816
9,876
3,792
2,645
169
225
562
36,753
-
$ 676,344
265,030
250,039
190,240
177,140
83,900
104,352
50,771
17,145
30,141
28,256
27,159
20,024
1,055
24,367
4,611
6,674
6,281
3,790
2,622
165
394
598
4,098
-
$ 730,448
348,732
328,562
212,243
205,904
123,080
115,746
52,644
29,322
35,126
27,460
32,005
27,655
1,590
21,417
6,708
7,842
5,775
4,426
2,204
1,907
1,276
977
-
$ 919,648
486,128
466,122
344,543
241,761
130,192
121,327
54,524
39,227
38,076
36,950
32,996
32,572
23,947
17,466
10,700
9,002
4,916
4,879
2,313
2,022
1,458
1,162
-
$ 876,279
323,616
409,577
497,561
293,369
149,788
117,834
54,551
44,070
43,410
31,909
33,489
33,352
57,973
17,968
9,458
10,618
1,802
13,808
3,303
2,045
353
1,813
52
16
-
Totals
$ 976,156
$ 1,059,328
$ 1,270,905
$ 1,521,139
$ 1,556,392
$ 1,695,997
$ 1,975,196
$ 2,323,049
$ 3,021,931
$ 3,028,014
Economic Segment
Source: MBIA MuniServices Company
111
City of Coachella
Property Tax Levies and Collections
Fiscal Year
Ended
June 30
Total Tax
Levy for
Fiscal Year
Collected within the
Fiscal Year of the Levy
Percentage
Subsequent
Amount
of Levy
Years
Collection in
Subsequent Years
Percentage
Amount
of Levy
2003
2004
2005
2006
2007
4,034,206
4,330,608
6,322,085
8,897,106
14,653,414
4,034,206
4,330,608
6,322,085
8,897,106
14,653,414
4,034,206
4,330,608
6,322,085
8,897,106
14,653,414
100%
100%
100%
100%
100%
112
-
100%
100%
100%
100%
100%
City of Coachella
Ratios of Outstanding Debt Type
Last Six Years
Fiscal Year End
Redevelopment
Loan
Governmental Activities
Redevelopment
Financing
Bonds
Authority
Capital Leases
Compensated
Absences
Business-Type Activites
Revolving Fund Certificates of
Loan
Participation
Refunding
Bonds
Revenue Bonds
Capital Leases
Compensated
Absences
Total Primary
Government
Percentage of
Total Revenue
2007
-
53,775,000
-
467,066
773,973
-
22,664,274
20,934,609
-
-
332,317
98,947,239
221.63%
2006
-
53,077,896
-
255,299
560,355
10,620,000
12,463,042
10,741,797
-
-
-
87,718,389
196.48%
2005
1,378,824
22,657,302
5,000,000
306,770
448,254
5,725,000
12,713,036
-
-
-
-
48,229,186
133.14%
2004
2,419,870
17,175,002
5,000,000
370,301
434,673
13,152,004
-
-
3,340,000
-
-
41,891,850
117.79%
2003
-
17,545,002
-
81,797
373,819
-
-
-
11,050,541
216,184
-
29,267,343
176.15%
2002
1,642,565
17,900,002
-
52,887
405,696
-
-
-
11,320,898
421,766
-
31,743,814
320.26%
Source: City of Coachella
113
City of Coachella
Ratios of General Bonded Debt Outstanding
(amounts expressed in thousands, except per capita amount)
Fiscal
Year
2003
2004
2005
2006
2007
General
Obligation
Bonds
29,267,343
41,889,850
48,229,186
87,823,389
98,947,239
Less: Amounts
Available in Debt
Service Fund
9,929,355
16,672,229
18,171,017
45,734,873
42,139,248
Total
34%
40%
38%
52%
43%
Percentage of
Estimated
Actual Taxable
Value¹ of
Property
Per
Capita²
-
¹See the schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.
²Population data can be found in the Schedule of Demographic and Economic Statistics
114
City of Coachella
Direct and Overlapping Governmental Activities Debt
(amounts expressed in thousands, except per capita amount)
Fiscal
Year
2003
2004
2005
2006
2007
General
Obligation
Bonds
4,034,206
4,330,608
6,322,085
8,897,106
14,653,414
Less: Amounts
Available in Debt
Service Fund
4,034,206
4,330,608
6,322,085
8,897,106
14,653,414
Total
100%
100%
100%
100%
100%
115
Percentage of
Estimated
Actual Taxable
Value of
Property
-
Per
Capita
City of Coachella
Legal Debt Margin Information
Last Ten Years
Assessed valuation
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
434,044,235
443,399,360
448,412,836
486,817,887
518,929,607
563,976,091
633,683,194
740,838,899
1,025,752,377
1,629,220,124
Conversion percentage
Adjusted assessed valuation
25%
108,511,059
Debt limit percentage
Debt limit
15%
16,276,659
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
25%
110,849,840
15%
16,627,476
25%
112,103,209
15%
16,815,481
25%
121,704,472
25%
129,732,402
15%
18,255,671
15%
19,459,860
25%
140,994,023
15%
21,149,103
25%
158,420,799
15%
23,763,120
25%
185,209,725
15%
-
-
-
-
-
-
-
-
$ 16,627,476
$ 16,815,481
$ 18,255,671
$ 19,459,860
$ 21,149,103
$ 23,763,120
$ 27,781,459
0.0%
0.0%
0.0%
0.0%
0.0%
The Government Code of the State of California provides for a legal debt limit of
15% of gross assessed valuation. However, this provision was enacted when
assessed valuation was based upon 25% of market value. Effective with the 1981-82
fiscal year, each parcel is now assessed at 100% of market values (as of the most
change in ownership for that parcel). The computations shown above reflect a
conversion of assessed valuation data for each fiscal year from the current full
valuation perspective to the 25% level that was in effect at the time that the legal
debt margin was enacted by the State of California for local governments located
within the state.
Source: Riverside County Assessors Office
HDL Coren & Cone
116
0.0%
0.0%
0.0%
25%
256,438,094
407,305,031
15%
27,781,459
$ 16,276,659
Total debt applicable to the limit
as a percentage of debt limit
25%
15%
38,465,714
61,095,755
$
38,465,714
0.0%
$
61,095,755
0.0%
City of Coachella
Revenue Bond Coverage - Coachella Sanitary District
Last Four Years
Gross
Expenses (1)
Net Revenue
Available for
Debt Service
Debt Service Requirements
Interest
Total
Fiscal Year
Gross
Revenues
2007
6,139,807
2,391,117
3,748,690
105,000
245,494
350,494
10.70
2006
6,218,344
2,307,908
3,910,436
105,000
240,863
345,863
11.31
2005
4,603,157
2,241,179
2,361,978
-
-
337,062
7.01
2004
3,799,752
1,872,625
1,927,127
337,906
5.70
Principal
(1) Operating expenses less depreciation and debt service, per bond official statement
(2) 1.25 debt service coverage requirement, per bond resolutions
117
Coverage (2)
City of Coachella
Revenue Bond Coverage - Coachella Water Authority
Last Four Years
Gross
Expenses (1)
Net Revenue
Available for
Debt Service
Debt Service Requirements
Interest
Total
Fiscal Year
Gross
Revenues
2007
3,965,677
3,320,370
645,307
105,000
245,231
350,231
1.84
2006
5,269,125
2,433,014
2,836,111
250,000
584,663
834,663
3.40
2005
3,642,708
1,861,843
1,780,865
245,000
590,788
835,788
2.13
2004
2,906,703
1,418,263
1,488,440
475,000
361,840
836,840
1.78
Principal
(1) Operating expenses less depreciation, per bond official statement
(2) 1.25 debt service coverage requirement, per bond resolutions
118
Coverage (2)
City of Coachella
Demographic and Economic Statistics
Last Eight Years
Unemployment
Rate
School
Enrollment
1,200
10.4%
17,499
10,400
900
8.3%
16,418
10,800
9,900
900
8.4%
15,452
28,144
10,400
9,500
900
8.6%
14,621
2003
27,117
10,000
9,000
1,000
9.9%
13,687
2002
24,427
9,500
8,600
900
9.9%
13,173
2001
23,365
9,100
8,300
800
8.6%
12,636
2000
22,724
8,600
7,900
700
8.4%
11,932
Calendar Year
Population
2007
38,486
2006
Total Work
Force
Employed
Unemployed
11,900
10,700
35,449
11,300
2005
30,964
2004
Sources: California Department of Finance
California Department of Education
California Employment Development Department
119
City of Coachella
Principal Employers
Calendar Year 2007 and Five Years Ago
2007
Employer
Coachella Valley Unified School District
Employees
2002
Percentage
of Total
City
Employmen
t
Rank
Employees
Percentage
of Total
City
Employme
nt
Rank
1800
1
15.13%
1000
1
10.53%
Spotlight 29 Casino
800
2
6.72%
600
2
6.32%
Coachella Valley Water District
550
3
4.62%
450
3
4.74%
Augustine Casino
428
4
3.60%
350
4
3.68%
Valley Pride
400
5
3.36%
300
5
3.16%
Esterling Defense (formerly Armtec Industries)
344
6
2.89%
203
6
2.14%
Teserra (formerly California Pools)
320
7
2.69%
200
7
2.11%
Sun World
271
8
2.28%
170
8
1.79%
Ernie Ball/Paladar
262
9
2.20%
Cardenas
122
10
1.03%
120
City of Coachella
Five Year Staffing History (Full Time Equivalents)
General Government
Administration
Community Development
Finance
General Government
Neighborhood Services
Public Works
Senior Center
Sanitary District
Water Agency
Grand Total
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
5.50
4.50
4.50
2.00
4.25
13.05
3.00
4.25
7.70
6.55
5.50
4.50
4.50
2.00
7.00
13.25
3.00
4.25
7.70
6.55
5.50
4.00
4.75
2.00
7.65
14.55
3.00
3.25
7.95
6.80
5.00
4.75
4.33
2.00
5.75
21.15
3.00
4.00
11.28
7.74
8.00
5.75
4.08
2.00
9.25
25.08
3.00
6.33
10.44
13.07
-
55.30
58.25
59.45
69.00
87.00
-
(1) This report does not include elected officials.
(2) All part-time employees are treated as .5 FTE in this report.
(3) Some positions are distributed among two or more departments for accounting purposes.
(4) Some City staff and management also serve in similar functions for component units such as Sanitary District
and Redevelopment Agency.
121
City of Coachella
Operating Indicators by Function
2003
Function
Police
Physical arrests
Parking violations
Traffic violations
Fire
Number of calls answered
Inspections
Highways and streets
Street resurfacing (miles)
Potholes repaired
Sanitation
Refuse collected (tons/day)
Recyclables collected (tons/days)
Culture and recreation
Athletic field permits issued
Community center admissions
Water
New connections
Water mains breaks
Average daily consumption
(gallons)
Wastewater
Average daily sewage treatment
(gallons)
Fiscal Year
2005
2004
2006
2007
107
353
1,077
1,703
240
6,374,763
5,219,170
8,223,258
6,653,153
7,784,986
1,200,000
1,200,000
1,200,000
2,400,000
2,470,000
122
City of Coachella
Capital Asset Statistics by Function
Fiscal Year
2004
2005
2003
Function
Public safety
Police
Substations
Service hours
Fire stations
Personnel (full time)
Support personnel
Highways and streets
Streets (miles)
Streetlights
Culture and recreation
Parks acreage
Parks
Swimming pools
Tennis courts
Community centers
Water
Water meters active
Fire hydrants
Sanitary
Plants
(capacity/gallons)
2006
2007
0
n/a
1
9
n/a
0
n/a
1
9
n/a
0
84
1
9
19
1
110
1
18
20
1
110
1
18
20
65
804
65
804
65
804
65
804
65
804
269.39
7
2
2
1
269.39
7
2
2
1
269.39
7
2
2
1
269.39
7
2
2
1
269.39
7
2
2
1
1,971
3
2,211
4
2,974
15
4,216
35
4,216
35
1
1,200,000
1
1,200,000
1
1,200,000
1
2,400,000
1
2,400,000
123
City of Coachella Parks Fiscal Year 2003
Canal
Bagdouma Regional De Oro
Park
Park
Park
Parks acreage
Parks
Swimmin pools
Tennis courts
Community centers
Baseball fields
Soccer fields
34.3
1
1
2
1
4
2
221.99
1
0
0
0
0
0
Veterans
Sierra
Memorial Dateland Vista
Park
Park
Park
4
1
0
0
0
1
1
1.5
1
1
0
0
0
0
4
1
0
0
0
1
0
Shady
Lane
Park
2.6
1
0
0
0
0
0
Total
1
1
0
0
0
0
0
269.39
7
2
2
1
6
3
Canal
Park
Park
Park
Parks acreage
Parks
Swimmin pools
Tennis courts
Community centers
Baseball fields
Soccer fields
34.3
1
1
2
1
4
2
221.99
1
0
0
0
0
0
Veterans
Sierra
Park
Park
Park
4
1
0
0
0
1
1
1.5
1
1
0
0
0
0
4
1
0
0
0
1
0
Shady
Lane
Park
2.6
1
0
0
0
0
0
Total
1
1
0
0
0
0
0
269.39
7
2
2
1
6
3
Canal
Park
Park
Park
Parks acreage
Parks
Swimmin pools
Tennis courts
Community centers
Baseball fields
Soccer fields
34.3
1
1
2
1
4
2
221.99
1
0
0
0
0
0
Veterans
Sierra
Park
Park
Park
4
1
0
0
0
1
1
1.5
1
1
0
0
0
0
4
1
0
0
0
1
0
Shady
Lane
Park
2.6
1
0
0
0
0
0
Total
1
1
0
0
0
0
0
269.39
7
2
2
1
6
3
Canal
Park
Park
Park
Parks acreage
Parks
Swimmin pools
Tennis courts
Community centers
Baseball fields
Soccer fields
34.3
1
1
2
1
4
2
221.99
1
0
0
0
0
0
Veterans
Sierra
Park
Park
Park
4
1
0
0
0
1
1
1.5
1
1
0
0
0
0
4
1
0
0
0
1
0
Shady
Lane
Park
2.6
1
0
0
0
0
0
Total
1
1
0
0
0
0
0
269.39
7
2
2
1
6
3
Canal
Park
Park
Park
Parks acreage
Parks
Swimmin pools
Tennis courts
Community centers
Baseball fields
Soccer fields
34.3
1
1
2
1
4
2
221.99
1
0
0
0
0
0
Veterans
Sierra
Park
Park
Park
4
1
0
0
0
1
1
1.5
1
1
0
0
0
0
4
1
0
0
0
1
0
Shady
Lane
Park
2.6
1
0
0
0
0
0
124
Total
1
1
0
0
0
0
0
269.39
7
2
2
1
6
3

2006-2007 CAFR

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