Agenda — Indian Wells City Council, December 7, 2023 (part 1 of 3)

CITY COUNCIL AND SUCCESSOR AGENCY
Revised Meeting Agenda

Thursday, December 7, 2023
1:30 PM
City Hall Council Chamber
44950 Eldorado Drive, Indian Wells, CA 92210

Welcome to a meeting of the Indian Wells City Council.

Public Comments: Members of the Public who wish to speak should fill out a blue slip and submit it to the City Clerk, comments are limited to 3 minutes. In accordance with State Law, remarks during public comment are to be limited to subjects within the City's jurisdiction.

Notification: If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (ADA) please contact the City Clerk at 760-346-2489, 48 hours prior to the meeting.

Please turn off all communication devices (phones) or put them on non-audible mode (vibrate) during Council proceedings. All documents for public review are available for public inspection at City Hall reception, 44-950 Eldorado Drive, Indian Wells during normal business hours.

Pages
A. CONVENE THE CITY COUNCIL AND SUCCESSOR AGENCY JOINT

MEETING, PLEDGE OF ALLEGIANCE AND ROLL CALL

MAYOR/CHAIR DONNA GRIFFITH

MAYOR PRO TEM/VICE CHAIR GREG SANDERS

COUNCIL MEMBER/BOARD MEMBER TY PEABODY

COUNCIL MEMBER/BOARD MEMBER BRUCE WHITMAN

COUNCIL MEMBER/BOARD MEMBER DANA REED
B. APPROVAL OF THE FINAL AGENDA
C. REORGANIZATION OF CITY COUNCIL
C.1 Presentation of Mayor's Plaque to Donna Griffith
C.2 Mayor and Mayor Pro Tem Oath of Office
C.3 Remarks and Introduction of Guests
D. RECESS CITY COUNCIL FOR 15 MINUTES
E. RECONVENE REORGANIZED CITY COUNCIL AND ROLL CALL
F. PROCLAMATIONS AND PRESENTATIONS
F.1 Introduction of New Building Inspector I/Code Enforcement Brian Pelletier and Receptionist Melissa Arreguin
G. PUBLIC COMMENTS
Members of the Public who wish to speak on consent items OR items not listed on the agenda may do so at this time. Public Comments are limited to 3 minutes. Speakers will be alerted when their time is up and are then to return to their seats and no further comments will be permitted.

Please note that while the City Council values your comments, the Council cannot respond nor take action on matters not listed on the agenda until the matter may appear on the forthcoming agenda.

H. CITY MANAGER'S REPORTS
The City Manager or Department Heads may make brief announcements, informal comments, or brief the Council on items of interest.

I. CITY ATTORNEY REPORTS AND COMMENTS

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J. SUCCESSOR AGENCY CONSENT CALENDAR
All matters listed on the Consent Calendar are considered to be routine and will be approved by one motion There will be no separate discussion of these items unless members of the Council request specific items be removed from the Consent Calendar for separate discussion and action.

J.1 Resolution Approving the Annual Recognized Obligation Payment Schedule 2024-25
10 RECOMMENDED ACTION:

Successor Agency ADOPTS Resolution approving the Recognized Obligation Payment Schedule for the period of July 1, 2024, through June 30, 2025
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(e) (3) of the guidelines.

K. CITY COUNCIL CONSENT CALENDAR
All matters listed on the Consent Calendar are considered to be routine and will be approved by one motion. Reading of text of Ordinances is waived and Ordinances are adopted as second reading, by title only. There will be no separate discussion of these items unless members of the Council request specific items be removed from the Consent Calendar for separate discussion and action.

K.1 Fairway Park Deed Restriction 21
RECOMMENDED ACTION:

Council APPROVES a Deed Restriction for the Fairway Park project as required by the Prop 68 Per Capita Grant funding that was approved by City Council Resolution 2021-42.

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K.2 Subsequent 1-Year Agreement Extension with De Novo Planning Group for Comprehensive General Plan Update and CEQA
Documentation
25 RECOMMENDED ACTION:

Council AUTHORIZES and DIRECTS the City Manager to execute a subsequent one (1) year extension to the Professional Services Agreement with De Novo Planning Group for the preparation and development of the Comprehensive General Plan Update and required environmental documentation.

K.3 Planning Commission Resolution Recommending Approval of Variance No. 2023-0002 for 45891 Club Drive and Finding the Project Exempt from CEQA
29 RECOMMENDED ACTION:

Council RECEIVES and FILES Resolution No. PC 2023-09, in concurrence with the Planning Commission Recommendation to approve Variance No. 2023-02 to allow encroachment into the front yard setback for a new 314 square foot garage extension to an existing residence located at 45891 Club Drive (APN 633-260-046); and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15303(e), New Construction or Conversion of Small Structures.

K.4 2024 City Council Meeting Schedule 49
RECOMMENDED ACTION:

Council ADOPTS the 2024 City Council meeting schedule as presented.

K.5 2024 City Council Assignments to Various Internal and External Committees
52 RECOMMENDED ACTION:

Council APPROVES the 2024 City Council Committee Assignments. *K.5.a Revised City Council Assignments 58

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K.6 City Council Members Attendance at 2024 Events 62
RECOMMENDED ACTION:

Council APPROVES the attendance of Council Member/s at 2024 events identified in the staff report; and
AUTHORIZES any normal and reasonable reimbursement of
expenses incurred by any Council Member for the events identified in the staff report.
*K.6.a Revised City Council Member Attendance at Events 65 K.7 Council Ad Hoc Governance Committee Representative 68 RECOMMENDED ACTION:

Council APPROVES the change of the Ad Hoc Committee
Representative from Councilmember Reed to Mayor Sanders.

K.8 Annual Developer Impact Fee Report 70
RECOMMENDED ACTION:

Council APPROVES the Annual Developer Impact Fee Report submitted for the Fiscal Year 2022-23.

K.9 Annual Financial Report for the Fiscal Year Ending June 30, 2023 81 RECOMMENDED ACTION:

Council RECEIVES and FILES the City’s Annual Financial Report for the fiscal year ending June 30, 2023.

K.10 City Treasurer’s Report for September 2023 281
RECOMMENDED ACTION:

Council RECEIVES and FILES the City Treasurer’s Report for September 2023.

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K.11 City Treasurer’s Report for October 2023 301
RECOMMENDED ACTION:

Council RECEIVES and FILES the City Treasurer’s Report for October 2023.

L. PUBLIC HEARINGS
For each of the items listed under PUBLIC HEARING ITEMS, the public will be provided an opportunity to speak. After a staff report is provided, the Mayor will open the public hearing. At that time the applicant will be allowed five (5) minutes to make a presentation on the case. Members of the public will then be allowed three (3) minutes each to speak, unless there are a number of person’s wishing to speak and then the Mayor will allow only two (2) minutes, to accommodate for more persons. The City Council may ask the speakers questions relative to the case. After all persons have spoken, the applicant will be allowed three minutes to summarize or rebut any public testimony. The Mayor will then close the public hearing portion of the hearing and deliberate the matter.

L.1 Ordinance Amending City’s Zoning Code Relating to City Landscape Requirements and Finds the Action Exempt from CEQA
321
RECOMMENDED ACTION:

Council OPENS the Public Hearing, takes any public testimony, CLOSES the Public Hearing; and
FINDS that the proposed ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15304, where the proposed amendment consists of minor public or private alterations to the condition of land, water or vegetation as there is no possibility the activity in question will have a significant effect on the environment; and
INTRODUCES Ordinance to be read by title only and further reading waived, amending Sections 21.60.020, 21.60.080, 21.90.030 and adding Section 21.60.085 to the Zoning Code relating to the City’s landscape regulations.

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M. GENERAL BUSINESS
After staff presentation, the Mayor will call upon the members of the public to address the Council regarding the agenda item being considered. After the public has provided comment, the item is closed to further comment and brought to the Council for discussion and action.

M.1 Living Desert Funding Opportunity 367
RECOMMENDED ACTION:

Council DISCUSSES and provides DIRECTION on the funding request for The Living Desert Zoo and Gardens; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

M.2 Sponsorship for Desert International Horse Park 428 RECOMMENDED ACTION:

Council APPROVES Finance Committee Recommended Sponsorship for Desert International Horse Park.

N. COUNCIL MEMBER'S REPORTS AND COMMENTS
On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. Council Members may ask a question for clarification, make a referral to staff, or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.

N.1 DONNA GRIFFITH
CVAG Executive Committee
CVAG Conservation Commission
CVAG Energy & Sustainability Committee
CVAG Homelessness Committee
Indian Wells Community Activities Committee
Indian Wells Golf Resort Advisory Committee
Indian Wells Grants In Aid Committee
Indian Wells Finance/Legal Services Oversight Committee Indian Wells Personnel Committee
Indian Wells Tee Committee

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N.2 DANA REED
California Joint Powers Insurance Authority
Riverside County Transportation Commission
CVAG Public Safety Committee
CVAG Transportation Committee
Southern California Association of Governments
N.3 TY PEABODY
Cove Communities Services Commission
Coachella Valley Animal Campus
Indian Wells Golf Resort Advisory Committee
Indian Wells Marketing Committee
Sunline Transit Agency
N.4 BRUCE WHITMAN
Coachella Valley Economic Partnership
Coachella Valley Mountains Conservancy
Desert Sands Unified School District
Indian Wells Marketing Committee
Indian Wells Public Safety
N.5 GREG SANDERS
Cove Communities Services Commission
Desert Sand Unified School District
Indian Wells Finance & Legal Services Oversight Committee Indian Wells Personnel Committee
Indian Wells Public Safety Committee
Indian Wells Tee Committee
Visit Greater Palm Springs

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O. ADJOURNMENT
To a regularly scheduled meeting of the City Council to be held at 1:30 p.m. on January 18, 2024, in the City Hall Council Chamber.

Affidavit of Posting,
I, Angelica Avila, certify that on December 1 2023 I caused to be posted a notice of a City Council Meeting to be held on December 7 2023 at 1:30 p.m. in the City Hall Council Chamber.

Notices were posted at Indian Wells Civic Center and City's Website [www.cityofindianwells.org]
________________________
Angelica Avila, City Clerk

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INDIAN WELLS SUCCESSOR AGENCY
December 7, 2023

To: Indian Wells Successor Agency
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Resolution Approving the Annual Recognized Obligation Payment Schedule 2024-25

RECOMMENDED ACTIONS:

Successor Agency ADOPTS Resolution approving the Recognized Obligation Payment Schedule for the period of July 1, 2024, through June 30, 2025

FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(e) (3) of the guidelines.

BACKGROUND:

The Successor Agency is mandated to prepare the "Recognized Obligation Payment Schedule" (ROPS), which enumerates the Agency's outstanding obligations for the upcoming year. After the completion of the ROPS, it is submitted to the Riverside County Oversight Board (Oversight Board) for their approval. Following the Oversight Board's approval, the ROPS undergoes a comprehensive inspection and final review by the State Department of Finance. It is essential to note that the State Department of Finance necessitates the submission of the annual ROPS for the reporting year no later than February 1.

In accordance with Assembly Bill No. 1X 26 and the California Supreme Court's ruling in the Matosantos case, which challenged the constitutionality of AB 26, all redev elopment agencies in the state were dissolved as of February 1, 2012. This dissolution included the Redevelopment Agency of the City of Indian Wells (the "Redevelopment Agency").

Subsequently, successor agencies were designated to oversee the gradual conclusion of the former redevelopment agencies' operations.

The legislation stipulated that upon the dissolution of a redevelopment agency, either the City or another local government entity would step forward to serve as the "successor agency." Their role is to safeguard the assets of the dissolved agency until they are appropriately distributed to various state and local government units. On January 12,

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2012, the City Council decided to assume the role of the Successor Agency for the former redevelopment agency, as specified in City Resolution Number 2012-03.

AB 26 provides that a successor agency is to be designated as the successor entity to the former Redevelopment Agency, vested with all authority, rights, powers, duties, and obligations previously awarded to the former Agency under the Community Redevelopment Law (Health & Saf ety Code, § 33000 et seq. ), with certain exceptions.

This successor agency is responsible for the wind-down of the Agency's affairs. The City elected to be the Agency's successor ag ency by Resolution Bill No. 2012 -03 on January 12, 2012.

Recognized Obligation Payment Schedule (“ROPS”)

The staff of the Successor Agency has prepared the proposed Recognized Obligation Payment Schedule for the period spanning from July 1, 2024, throug h June 30, 2025 (referred to as "ROPS FY 2024-25"), in a format substantially mirroring the presentation found in Attachment "2," which is appended herewith and incorporated by reference.

The Successor Agency is authorized to receive an administrative cost allowance, denoted as the "Administrative Cost Allowance," in accordance with the provisions of Health and Safety Code Sections 34171(b) and 34183(a)(3). For the 2024 -25 fiscal year, this allowance is anticipated to be approximately $2 40,000, with disbur sements of approximately $240,000 scheduled for July 1, 2024, and approximately $0 for January 2, 2025.

The activities of the City, acting as the successor agency, are subject to oversight by an Oversight Board until all the Agency's outstanding debts are settled, all Agency assets are liquidated, and all property taxes formerly remitted to the Agency are redirected to local taxing agencies.

Following approval by the Oversight Board, the Successor Agency proceeds to submit the ROPS to the State Department of Finance for approval and disbursement. It is imperative to note that the State Department of Finance mandates the submission of the new annual ROPS before the commencement of the reporting year no later than February 1.

FISCAL IMPACT:

There is no fiscal impact on the City. Consistent with State Law, funding requests are submitted to the Riverside County Oversight Board. The Successor Agency requests $9,143,306 during the upcoming ROPS cycle as follows:

1. Debt service payments of $5,803,306

2. Loan repayments of $3,100,000 paid to the City (General Fund)

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3. Successor Agency Administrative Costs of $240,000

Administrative Fees

During the next ROPS cycle, the City (General Fund) will collect $ 240,000 to administer the Successor Agency. Administrative fees include administrative oversight, legal review and compliance, successor agency audits, bond and trustee costs, arbitrage and continuing disclosure, technology services, and office supplies.

Outstanding Agency Debt

As of June 30, 202 3, the Agency debt was $74.5 million, as described below. The debt service listed below matures in different years and is scheduled to be repaid entirely by 2035. Annual principal retirements range between $10.0 million and $10.8 million.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that t he Balance at Balance at
Description 6/30/2022 Additions Deletions 6/30/2023
Bonds Payable:
2014 A-T Tax Allocation Bonds 4,275,000 - (4,275,000) - 2015 A Tax Allocation Bonds 12,760,000 - (1,695,000) 11,065,000 2016 A Tax Allocation Bonds 36,550,000 - (115,000) 36,435,000 2020 A Tax Allocation Bonds 6,770,000 - (455,000) 6,315,000 Subtotal 60,355,000 - (6,540,000) 53,815,000 Add (less) deferred amounts:
2015 A Premium 1,267,263 (245,276) 1,021,987 2016 A Premium 5,127,514 - (421,440) 4,706,074 Subtotal 6,394,777 - (666,716) 5,728,061 Total bonds payable 66,749,777 - (7,206,716) 59,543,061 Other liabilities:

Accrued Interest 874,626 781,690 (874,626) 781,690 Consolidated Loan Payable 16,400,000 - (2,212,774) 14,187,226 Subtotal 17,274,626 781,690 (3,087,400) 14,968,916 Total long-term liabilities 84,024,403 781,690 (10,294,116) 74,511,977

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ordinance is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a “project” as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

ATTACHMENTS:

1. Resolution

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RESOLUTION SA NO. 2023- ___
A R

ESOLUTION OF THE SUCCESSOR AGENCY TO THE DISSOLVED

REDEVELOPMENT AGENCY OF THE CITY OF INDIAN WELLS,

CALIFORNIA, APPROVING AND ADOPTING A DRAFT OF THE

RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO
HEALTH AND SAFETY CODE SECTION 34177(l)
W
HEREAS, pursuant to Health and Safety Code section 34173(d), the City of Indian Wells (“Successor Agency”) elected to become the successor agency to the Indian Wells Redevelopment Agency by City Council Resolution No. 2012-03 on January 12, 2012; and W
HEREAS, Health and Safety Code section 34177(l)(2) requires the Successor Agency to prepare a draft of the recognized obligation payment schedule (“ROPS”) covering the period from July 1, 2024, to June 30, 2025; and
W
HEREAS, Health and Safety Code section 34177(l)(2) requires the Successor Agency to submit a copy of the ROPS to the county administrative office, the county auditor -controller, and the Department of Finance at the same time that the Successor Agency submits the ROPS to the oversight board for its approval; and
W
HEREAS, upon approval by the Oversight Board, the Successor Agency is required to submit a copy of the approved ROPS (“Approved ROPS”) to the Riverside County Auditor - Controller, the California State Controller, and the State of California Department of Finance, and post the Approved ROPS on the Successor Agency’s website; and W
HEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

OW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIAN WELLS, SERVING AS

THE SUCCESSOR AGENCY TO THE DISSOLVED INDIAN WELLS REDEVELOPMENT AGENCY, RESOLVES AS FOLLOWS:

SECTION 1. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

SECTION 2. The approval of the draft of the ROPS through this Resolution does not commit the Successor Agency to any action that may have a significant effect on the environment.

As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act. The City Clerk, acting on behalf of the Successor Agency, is authorized and directed to file a Notice of Exemption with the appropriate official of the County of Riverside, California, within five (5) days following the date of adoption of this Resolution.

SECTION 3. T he Successor Agency APPROVES and ADOPTS the draft of the ROPS, in substantially the form attached to this Resolution as Exhibit “A,” as required by Health and Safety Code Section 34177.

SECTION 4. The City Manager, acting on behalf of the Successor Agency, is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution and comply with applicable law regarding the draft of the ROPS, including submitting the draft of the ROPS to the Riverside County Auditor- Controller, or its designee, the County Administrative ATTACHMENT #1

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Successor Agency to the Indian Wells Redevelopment Agency Resolution SA No. __

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Officer for Riverside County, the Department of Finance, and the Successor Agency’s oversight board, and following approval of the ROPS by the oversight board, submitting the Approved ROPS to the Riverside County Auditor -Controller, the California State Controller, and the State of California Department of Finance, and posting the Approved ROPS on the Successor Agency’s website.

SECTION 5. This Resolution shall take effect immediately upon its adoption.

PA
SSED, APPROVED, AND ADOPTED by the Successor Agency to the Redevelopment Agency of the City of Indian Wells, California, at a joint regular meeting held on the 7th day of December 2023.
__
______________________________

GREG SANDERS
MAYOR
CE
RTIFICATION FOR RESOLUTION NO. __
I, A
ngelica Avila, City Clerk of the City of Indian Wells, California, DO HEREBY CERTIFY that the whole number of the members of the Successor Agency to the Redevelopment Agency of the City of Indian Wells is five (5); that the above and foregoing Resolution was duly and regularly passed and adopted at a joint regular meeting of the Successor Agency to the Redevelopment Agency of the City of Indian Wells on the 7
th day of December 2023, by the following vote:

AY
ES:

NOES:

AT
TEST: APPROVED AS TO FORM:
_____________________________ ____________________________

ANGELICA AVILA TODD LEISHMAN

CITY CLERK CITY ATTORNEY

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Successor Agency to the Indian Wells Redevelopment Agency Resolution SA No. __

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EXHIBIT “A”

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Successor Agency to the Indian Wells Redevelopment Agency Resolution SA No. __

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Successor Agency to the Indian Wells Redevelopment Agency Resolution SA No. __

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Successor Agency to the Indian Wells Redevelopment Agency Resolution SA No. __

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Successor Agency to the Indian Wells Redevelopment Agency Resolution SA No. __

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INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: City Manager’s Department
Prepared by: Peter Castro, Assistant City Manager
Subject: Fairway Park Deed Restriction

RECOMMENDED ACTIONS:

Council APPROVES a Deed Restriction for the Fairway Park project as required by the Prop 68 Per Capita Grant funding that was approved by City Council Resolution 2021-

42. BACKGROUND:

The City Council Approved Resolution 2021-42 approving the application for Per Capita Grant Funding for the Fairway Park project. The next step in the grant funding process is to file a Deed Restriction on the property that restricts the title to the property, safeguarding the property consistent with the Grant for the duration of the contract performance period. The Deed Restriction will be filed with the Riverside County Recorder’s Office and shall remain in place through June 30, 2048. The Deed Restriction is a requirement for receiving grant funding for the project.

OPTIONS:

1. Staff recommendation s the City Council APPROVES a Deed Restriction for the Fairway Park project as required by the Prop 68 Per Capita Grant funding that was approved by City Council Resolution 2021-42.

2. Alternative direction

FISCAL IMPACT:

There is no fiscal impact for approving the Deed Restriction. Should the Council not approve the Deed Restriction, the City will not be eligible to receive the Prop 68 Per Capita Grant funding of approximately $180,000.

ATTACHMENTS:

1. Deed Restriction

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26529.00000\41834763.2
1 R
ECORDING REQUESTED BY:

California Department of Parks and Recreation
Office of Grants and Local Services
W
HEN RECORDED MAIL TO:

Office of Grants and Local Services
PO Box 942896
Sacramento, CA 94296-0001
Attn: Sara Schlussler
SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE
DE

ED RESTRICTION
I. W
HEREAS, the City of Indian Wells, California (“Owner”) is the recorded owner of the real property described in Exhibit A, attached and incorporated herein by reference (the “Property”); and II. WHEREAS, the California Department of Parks and Recreation (“DPR”) is a public agency created and existing under the authority of section 5001 of the California Public Resources Code; and
III. WHEREAS, Owner applied to DPR for grant funds available under the California D
rought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All of the 2018 Parks Bond Act, 2018 Parks Bond Act Per Capita Program to create a new neighborhood park including landscaping and minor elements "Fairway Park" on the Property; and
IV. WHEREAS, on July 1, 2020, DPR’s Office of Grants and Local Services conditionally a
pproved Grant 18-33-052 (the “Grant”) to create a new neighborhood park including landscaping and minor elements, now called the “Fairway Park,” on the Property, subject to, among other conditions, recordation of this Deed Restriction on the Property; and V. WHEREAS , but for the imposition of the deed-restriction condition of the Grant, the Grant would not be consistent with the public purposes of the 2018 Parks Bond Act, 2018 Parks Bond Act Per Capita Program, and the funds that are the subject of the Grant could therefore not have been granted; and
ATTACHMENT #1

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26529.00000\41834763.2

2 VI. WHEREAS, Owner has elected to comply with the deed-restriction condition of the Grant, to enable Owner to receive the Grant funds and perform the work described in the Grant.

NOW, THEREFORE, in consideration of the issuance of the Grant funds by DPR, the undersigned Owner for itself and for its heirs, assigns, and successors-in-interest, hereby irrevocably covenants with DPR that the conditions of the grant (set forth in paragraphs 1 through 5 and in Exhibit B hereto) shall at all times on and after the date on which this Deed Restriction is recorded constitute for all purposes covenants, conditions and restrictions on the use and enjoyment of the Property that are hereby attached to the deed to the Property as fully effective components thereof.

1. DURATION. (a) This Deed Restriction shall remain in full force and effect and shall bind Owner and all its assigns or successors-in-interest for the period running from July 1, 2018, through June 30, 2048.

2. TAXES AND ASSESMENTS. It is intended that this Deed Restriction is irrevocable and shall constitute an enforceable restriction within the meaning of (a) Article XIII, section 8, of the California Constitution; and (b) section 402.1 of the California Revenue and Taxation Code or successor statue. Furthermore, this Deed Restriction shall be deemed to constitute a servitude upon and burden to the Property within the meaning of section 3712(d) of the California Revenue and Taxation Code, or successor statue, which survives a sale of tax-deeded property.

3. RIGHT OF ENTRY. DPR or its agent or employees may enter onto the Property at times reasonably acceptable to Owner to ascertain whether the use restrictions set forth above are being observed.

4. REMEDIES. Any act, conveyance, contract, or authorization by Owner, whether written or oral, that uses the Property or would cause the Property to be used or would permit a use of the Property contrary to the terms of this Deed Restriction will be deemed a violation and a breach hereof.

DPR may pursue any and all available legal and equitable remedies to enforce the terms and conditions of this Deed Restriction. In the event of a breach, any forbearance on the part of DPR to enforce the terms

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26529.00000\41834763.2

3 and provisions hereof shall not be deemed a waiver of enforcement rights regarding any subsequent breach.

5. SEVERABILITY. If any provision of these restrictions is held to be invalid, or for any reason becomes unenforceable, no other provision shall be affected or impaired.

Dated: ______________________, 2023

Owner Name: City of Indian Wells, California
By:

Signed: ________________________________
Chris Freeland, City Manager

Attest:

By:

Signed: ________________________________
Angelica Avila, City Clerk
Approved as to form:

By:

Signed: ________________________________
Todd Leishman, for Best Best & Krieger LLP,
City Attorney

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INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: Community Development Department
Prepared by: Jon Berg, Community Development Director
Subject: Subsequent 1 -Year Agreement Extension with De Novo Planning Group for Comprehensive General Plan Update and CEQA Documentation

RECOMMENDED ACTIONS:

BACKGROUND:

On May 21, 2020, the City Council entered into a Professional Services Agreement (“PSA”) with De Novo Planning Group (“De Novo”) as a consultant, to prepare the Comprehensive General Plan Update and associated California Environmental Quality Act (“CEQA”) Documentation. This agreement was previously extended for 1-year and is scheduled to expire on December 31, 202 3. The request before Council is to grant a subsequent 1 - year extension of the PSA to expire on December 31, 2024.

DISCUSSION:

De Novo has completed, and staff has reviewed drafts of all General Plan Elements except for Land Use, which is currently being held in limbo until the City’s 6 th Cycle Housing Element is accepted by the State Housing of Community Development (“HCD”). The City cannot complete the Land Use Element and move forward with the CEQA environmental documentation and rezoning program, until HCD provides a pre-certification letter for the City’s Housing Element. Working with our consultant, De Novo, City Staff resubmitted a revised draft of the City’s Housing Element to HCD on November 15, 2023 addressing HCD’s 3rd comment letter. Statutorily, HCD has 60-days to review the revised draft before providing additional comments or a pre -certification letter back to the City. If HCD provides a pre -certification letter within the next 60 -days, a general timeline for completing the Land Use Element, rezoning programs and circulating the associated

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CEQA document for public review would be the Summer 2024 . Formal adoption of GP/PEIR and Zone Change Amendments would then be expected to follow in the Fall of 2024. Consequently, staff is recommending a subsequent 1-year extension to Abode’s PSA.

City Council Strategic Goal:

The extension of time will ensure a City Council strategic goal and directive for completing a comprehensive update to the City’s General Plan and certifying the City’s 6 th Cycle Housing Element.

OPTIONS:

Staff is recommending that the City Council issue a subsequent one-year extension to the PSA though December 31, 2024 (Attachment 1). This will allow adequate time for staff to continue working with De Novo and HCD regarding the Housing Element, and ultimately complete the scope of work for the Comprehensive General Plan Update and associated CEQA documentation. The fol lowing options are available for Council’s consideration:

1. Approve staff’s recommendation for a subsequent 1 -year extension to terminate December 31, 2024; or

2. Deny the request for extension and direct staff to investigate options for completing the Comprehensive General Plan Update and related CEQA process; or

3. Provide staff with alternative direction.

FISCAL IMPACT:

No fiscal impact.

ATTACHMENTS:

1. Agreement Extension

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December 7, 2023
Ben Ritchie
DeNovo Planning Group
1020 Suncast Lane, Suite 106
El Dorado Hills, CA 95762
R
e: Extension of Professional Services Agreement Between the City of Indian Wells and DeNovo Planning Group
D
ear Mr. Ritchie,
T
he Professional Services Agreement between the City of Indian Wells (“City”) and DeNovo Planning Group (“Denovo”) dated May 21, 2020 (“Agreement”) was previously extended on November 28, 2022 for 1- year and is due to expire on December 31 , 2023. This letter will memorialize and confirm the extension of the Agreement for a subsequent one (1) year term to expire on December 31, 2024.

P
ursuant to Section 5 of the Agreement, the City and De Novo may mutually agree to extend the Agreement . By mutually agreeing to this subsequent 1- year extension, the new expiration date of the Agreement will be December 31, 2024. All provisions of the Agreement and previous Amendments shall remain in full force and effect.

I
f you agree with a subsequent extension to the Agreement, please indicate by signing and dating where indicated below and returning this letter as soon as possible. If you would like to discuss this letter, please contact myself, or Jon Berg, Community Development Director.

S
incerely,
C
hristopher Freeland
City Manager
AG
REED AND ACCEPTED:

De
Novo Planning Group, a California
Corporation
By:

Its: Ben Ritchie, Principal
Date:

ATTACHMENT #1

Page 27 of 439 ends

THE CITY OF INDIAN WELLS,
a public body, corporate and politic

By:

Its: Christopher Freeland, City Manager
Date:

ATTEST:

By:

Its: Angelica Avila, City Clerk
Date:

APPROVED AS TO FORM:

By:

Its: Todd Leishman, City Attorney
Date:

Page 28 of 439 ends

INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: Community Development Department
Prepared by: Luis Rubalcava, Planner
Subject: Planning Commission Resolution Recommending Approval of Variance No. 2023-0002 for 45891 Club Drive and
Finding the Project Exempt from CEQA

RECOMMENDED ACTIONS:

FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15303(e), New Construction or Conversion of Small Structures.

DISCUSSION:

Architect Manuel Montalvo, on behalf of homeowner Tim Delesalle (“Applicant”), seeks approval for significant improvements to an existing residence located at 45891 Club Drive, within the Residential Very Low-Density Zone (Attachment 2 - Aerial Map). The project includes a 314 square foot extension to the existing garage towards the front of the home. Due to the irregular shape, substandard size, and large right-of-way (“ROW”) of the parcel, the Applicant requests a variance pursuant to Section 21.06.050 of the Indian Wells Municipal Code (“IWMC”) to extend the gara ge 5-feet into the front yard setback to accommodate an additional 111 square feet of garage space in favor of a bedroom addition within a portion of the existing garage area (Attachment 3 – Site Plan).

Despite this addition, the home will maintain a minimum setback of 20 feet from the front curb.

The subject property is characterized by its substandard lot size and unique positioning with a large ROW. The proposed extension aims to enhance the utility of the existing garage to accommodate an additional b edroom within the home without significantly altering the current streetscape or neighborhood character.

Page 29 of 439 ends

Planning Commission Recommendation: The City’s Planning Commission held a duly noticed public hearing on the Project during their regular meeting on November 30, 2023.

After car eful consideration of the project materials, findings, and the associated conditions of approval, the Planning Commission unanimously recommended City Council approval of Variance 2023 -03 by Resolution PC 20 23-09 (Attachment 1). Per IWMC Section 21.06.050 the City Council shall consider v ariance requests via the Consent Calendar. If no Council member or member of the public requests the item to be removed, it shall be formally adopted through City Council approval of the Consent Calendar.

Analysis:

IWMC Section 21.06.050 requires findings be made to approve a variance to any zoning standards. The following findings are required:

1. The strict application of [the] Zoning Code deprives the property of privil eges enjoyed by other property in the vicinity and under identical zoning classification because of special circumstances applicable to the property, including size, shape, topography, location, or surroundings.

FINDING:

The property exists behind the gates of the Indian Wells Country Club Community that is primarily zoned Residential Very Low Density (“RVLD”). The site’s tract map was approved by Riverside County in 1956, prior to the City’s incorporation and under a separate set of zoning rules and requirements (Attachment 4 – Tract Map).

The site, with its tapering dimensions from 75 feet at the front to 60 feet at the rear, does not meet the IWMC 21.23.050 minimum lot requirements of 100 -foot width and depth. This unique shape and size create a special circumstance, limiting the homeowner's buildable area. In addition, a public ROW easement affects 10- feet of depth along the same lot frontage at the street further restricting the homeowners’ ability to expand their home (Attachment 5 – Club Drive Street Improvement Plans).

The need for the encroachment into the front yard setback is a result of these unique design considerations. The proposed garage extension, while encroaching 5-feet into the required setback, maintains a 20-foot minimum separation from the street, ensuring optimal functionality and aesthetic appeal that align with the character of the surrounding properties . Therefore, given the irregular shape of the lot, substandard size, and 10-foot ROW, the strict application of the Zoning Code deprives the homeowner the opportunity to enlarge the floor area of the home consistent with other homes in the vicinity within the RVLD zoning district.

Page 30 of 439 ends

2. The granting of the Variance will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity.

FINDING:

The Indian Wells Country Club development is subject to standards identified in the RVLD zone. Specifically, the zoning requirements for lots with a width less than 90-feet stipulate a 20’ front yard, 10’ rear, and 12’ side (with no less than 5-feet on one side) setbacks to reduce building intensity and maintain access around the structure for public safety personnel.

The proposed extension does not alter the existing streetscape significantly. The minimum setback of 20 feet from the front curb is maintained, preserving the visual and spatial consistency within the neighborhood. The 5-foot encroachment into the front yard setback maint ains the existing side and rear property lines, ensuring no obstruction or hindrance to public pathways or neighboring properties.

The design also ensures that emergency access and public safety are not compromised resulting in improvements that will not b e materially injurious to properties in the vicinity. The extension is designed to be in harmony with the existing structure and surroundings, ensuring no adverse impact on public health, safety, or welfare.

3. The granting of the Variance does not constitut e a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and same zoning classification.

FINDING:

The Applicant provided a letter of justification, with findings, for grant of the requested variance (Attachment 6). In the letter, the Applicant points out existing neighborhood conditions that exhibit structures with reduced setbacks but maintain a minimum 20-foot setback condition from the curb.

Similar properties in the vicinity have undergone modifications and improvements in line with their unique requirements. The City of Indian Wells, under variance No. 2008-03, granted a variance to encroach into the front yard setback at 45324 Indian Wells Lane to accommodate an expanded garage for an existing single- family residence. Additional variances were approved under similar zoning characteristics as follow:

 VAR 2001-02: reduction of 5 feet of the required front setback  VAR 2006-02: 8.5 feet encroachment into the required front setback

Page 31 of 439 ends

 VAR 2021-01: 5-foot encroachment into the required front setback  VAR 2023-03: 4-foot encroachment into the required front setback

Given examples of other homes that encroach into setbacks, as well as prior formal approvals of similar setback encroachment via City approved va riances, the variance approval is not constituting a grant of special privilege inconsistent with other properties in the surrounding area.

4. The granting of the Variance does not authorize a use or activity which is not otherwise expressly authorized by the zone regulation governing the parcel of property.

FINDING:

Section 21.23.030 states that accessory structures associated with single -family residential uses are permitted in the RVLD zoning district. The proposed garage addition is a permissible struc ture under the zoning regulations governing the property. The variance does not authorize any use or activity that is not expressly permitted within the zone regulations governing the property.

The proposed project, subject to standard City Planning review, complies with the zone's requirements for single-family residence use, density, building height, and dwelling unit size. Attachment 7 shows the conceptual elevations for the garage addition, which does not increase the existing home's height past the al lowable height limits . Per IWMC Chapter 21.60, any visible external building changes from a public road require approval from the City’s Design Review Committee ( “DRC”). If approved, the design of these improvements will undergo a separate architectural re view prior to building permit issuance.

FISCAL IMPACT:

No fiscal impact.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the environmental regulations of the City. The City acting as Lead Agency, h as determined the garage addition qualifies as being Categorically Exempt from CEQA pursuant to Section 15303(e) New Construction or Conversion of Small Structures.

Page 32 of 439 ends

ATTACHMENTS:

1. Resolution No. PC 2023-09

2. Aerial Map

3. Site Plan

4. Club Drive Tract Map

5. Club Drive Street Improvement Plan

6. Applicant Justification Letter

7. Conceptual Building Elevations

Page 33 of 439 ends

RESOLUTION NO. PC 2023-09

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF INDIAN WELLS, CALIFORNIA, RECOMMENDING APPROVAL OF VARIANCE NO. 2023- 02 TO ALLOW ENCROACHMENT INTO THE FRONT YARD SETBACK FOR A NEW 314 SQUARE FOOT GARAGE ADDITION TO AN EXISTING RESIDENCE LOCATED AT 45891 CLUB DRIVE (APN 633-260-046), PURSUANT TO CEQA SECTION 153O3(e), NEW CONSTRUCTION OR CONVERSION OF SMALL

STRUCTURES
WHEREAS, Manuel Montalvo (the "Applicant") filed an application with the City of Indian Wells for Variance No. 2023-02, pursuant to Indian Wells Zoning Code Section 21.06.050, to allow a 5 encroachment into the front yard of an existing residential site located at 45891 Club Drive, Indian Wells, California to construct 314 square foot garage addition, which requires a variance from the required 20- foot front yard setback identified in Indian Wells Zoning Code Section 21.23.050(a) (the "Project"); and WHEREAS, on November 30, 2023, the Planning Commission held a duly noticed public hearing on the Project in conformance with the California Government Code and various Indian Wells Municipal Code sections and adopted Resolution No. PC 2023-09, recommending that the City Council approve the Project; and
WHEREAS, after careful consideration of the staff report, public testimony and all of the information presented at the hearing, the Planning Commission finds that:

1. The strict application of the Indian Wells Zoning Code deprives the property of privileges enjoyed by other property in the vicinity and under identical zoning classification because of special circumstances applicable to the property, including size, shape, topography, location, or surroundings.

FACT: Located within the Indian Wells Country Club Community, primarily zoned Residential Very Low Density (
RVLD
approval by Riverside County in 1956 under different zoning rules. The lot's tapering from 75 feet at the front to 60 feet at the rear fails to meet the Indian Wells Municipal Code Section 21.23.050's 100-foot width and depth requirements. Additionally, a 10- foot public right-of-way ( ROW ) easement along the frontage further limits expansion possibilities. The lot's irregular shape, substandard size, and the 10-foot ROW mean that strict adherence to the Indian Wells Zoning Code would unfairly restrict the homeowner from enhancing their property in line with other homes in the RVLD zoning district. This encroachment is essential for the homeowner to expand their home's floor area, aligning with the neighborhood's character while ensuring functionality.

2. The granting of the Variance will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity.

FACT: The Project maintains the applicable side and rear yard setbacks for public safety access in compliance with the RVLD zoning requirements, avoiding any interference with public pathways or neighboring properties. The proposed garage extension, while encroaching 5 feet into the front yard setback, upholds the existing streetscape's integrity.

ATTACHMENT #1

Page 34 of 439 ends

City of Indian Wells
Resolution No. PC 2023-09

Page 2 ends

It maintains a minimum 20-foot separation from the curb, preserving the neighborhood's visual and spatial harmony. The design of the extension ensures that emergency access and public safety are maintained, resulting in a project that is not materially injurious to nearby properties.

3. The granting of the Variance does not constitute a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and same zoning classification.

FACT: The irregular shape of the lot, substandard size, and 10-foot ROW are unique hardships that characterize the site. Past variances have been approved under similar zoning and site characteristics as the property in question. Therefore, granting of the Variance does not constitute any special privileges on the Project.

4. The granting of the Variance does not authorize a use of activity which is not otherwise expressly authorized by the zone regulation governing the parcel of property.

FACT: The granting of the Variance would not authorize a use that is not otherwise expressly authorized by the Zoning regulations governing the property.

NOW, THEREFORE, the Planning Commission of the City of Indian Wells does hereby resolve, determine, find, and order as follows:

SECTION 1. The foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution.

SECTION 2. This Project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the environmental regulations of the City. The City, acting as Lead Agency, determined that the project is exempt from CEQA pursuant to Public Resources Code Section 21080 and CEQA Guidelines Section 15303(a)(e) New Construction or Conversion of Small Structures.

SECTION 3. The Planning Commission ADOPTS Resolution No. PC 2023-09 recommending that the City Council approve Variance No. 2023-02 concerning the proposed Project subject to the incorporated herein.

SECTION 4. The Community Development Director shall transmit this recommendation to the City Council, and Variance No. 2023-02 shall be scheduled for consideration on the consent calendar before the City Council.

SECTION 5. The Planning Department shall certify to the adoption of this Resolution and shall mail by first class, prepaid, United States mail, a certified copy of this Resolution to Applicant.

Page 35 of 439 ends

City of Indian Wells
Resolution No. PC 2023-09

Page 3 ends

PASSED, APPROVED, AND ADOPTED by the Planning Commission of the City of Indian Wells, California at a regular meeting held on this 30th day of November 2023.

____________________________

NICHOLAS CONWAY
CHAIR

CERTIFICATION FOR RESOLUTION BILL NO. PC 2023-09

I, Jon Berg, Community Development Director of the City of Indian Wells, California, DO HEREBY CERTIFY that the whole number of the members of the Planning Commission is five (5); that the above and foregoing Resolution was duly and regularly passed and adopted at a regular meeting of the Planning Commission of the City of Indian Wells on the 30th day of November, 2023, by the following vote:

AYES: 5 Bahneman, Conway, Schleimer, Schubert, Welch NOES: 0 None

ATTEST: APPROVED AS TO FORM:

______________________________ ____________________________

JON BERG CRAIG HAYES

COMMUNITY DEVELOPMENT DIRECTOR CITY ATTORNEY

Page 36 of 439 ends

City of Indian Wells
Resolution No. PC 2023-09

Page 4 ends

Conditions of Approval for
Variance No. 2023-02

November 30, 2023

GENERAL:

1. The Applicant shall defend, indemnify, and hold harmless the City of Indian Wells and its officials, officers, employees, and agents from and against any claim, action, or proceeding against the City of Indian Wells, its officers, employees, or agents to attack (including any judicial proceedings or an referendum), set aside, void, or annul any approval or condition of approval of the City of Indian Wells concerning this project, including but not limited to, any alleged act or failure to act related to the
any approval or condition of approval by the Planning Commission or City Council. The City shall promptly notify the Applicant of any such claim, action, or proceeding concerning the project and the City shall cooperate fully in the defense of the matter. Applicant shall defend, with counsel mutually chosen by City and Applicant Applicant's own cost, expense and risk, any and all such aforesaid suits, actions or other proceedings of every kind that may be brought or instituted against City, its officials, officers, employees and agents.

Applicant shall pay and satisfy any judgment, award or decree that may be rendered against City, its officials, officers, employees or agents in any such suits, actions or other proceedings. Applicant shall also reimburse City for the cost of any settlement paid by City arising out of any such claims, demands, causes of action, costs, expenses, liabilities, loses, damages, injuries, suits, actions, or other proceedings. Such reimbursement shall include payment for City's attorney's fees and costs, including expert witness fees. Applicant shall reimburse City, its officials, officers, employees and agents for any and all legal expenses and costs, including expert witness fees, incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Applicant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, officers, employees or agents. In all cases, the City reserves the right, at its own option and cost, to choose its own attorney to represent the City, its officials, officers, employees, and agents in the defense of the matter.

2. In the event that any condition contained herein is determined to be invalid or legally unenforceable, then all remaining conditions shall remain in force.

3. The Project shall be developed in accordance with the approved plans, and failure to comply with any conditions of approval shall be deemed just cause for revocation of project approval by the City Council. However, the Community Development Director or designee shall have the authority to approve minor deviations in the conditions of approval, and all plans including the construction drawings, if deemed necessary by both the Applicant and the City to implement the Project as approved.

Page 37 of 439 ends

City of Indian Wells
Resolution No. PC 2023-09

Page 5 ends

4. The Applicant shall pay development impact fees at the established rates and amounts. Such fees may include, but not be limited to, new construction fee, and building permit and plan check fees.

5. This approval of Variance No. 2023-02 shall be used within one (1) year after final approval, or it shall become null and void unless the time limit is extended by the City Council per City proposed Project shall mean the application for and approval of all applicable building permits, and commencement of physical installation of the Project. In addition, this approval of Variance No. 2023-02 shall become null and void if any such building permit no longer remains in effect due to its lapse, if such occurs following the foregoing one-year permit.

6. Approval of this request shall not waive compliance with all applicable sections of the Indian Wells Municipal Code, all other applicable City ordinances, and applicable specific plans.

7. This variance approves the front yard building setback encroachment as shown, or in

Page 38 of 439 ends

SUBJECT PROPERTY
ATTACHMENT 2

Page 39 of 439 ends

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Page 41 of 439 ends

ATTACHMENT 4

Page 42 of 439 ends

Page 43 of 439 ends

SUBJECT PROPERTY
ATTACHMENT 5

Page 44 of 439 ends

45891 Club Dr
Variance - Leer of Jusﬁcaon
09/05/23

Leer of Jus
ﬁca
on
Findings:
(1) The strict applicaon of this Zoning Code deprives the property of privileges enjoyed by other property in the vicinity and under idencal zoning classiﬁcaon because of special circumstances applicable to the property, including size, shape, topography, locaon, or surroundings. (2) The granng of the Variance will not be detrimental to the public health, safety, or welfare, or materially injurious to properes or improvements in the vicinity. (3) The granng of the Variance does not constute a grant of special privileges inconsistent with the limitaons upon other properes in the vicinity and same zoning classiﬁcaon. (4) The granng of the Variance does not authorize a use or acvity which is not otherwise expressly authorized by the zone regulaon governing the parcel of property.

To whom it may concern,

I am submi5ng this request on behalf of the property owners, Tim & Karen Delesalle. We would like to request a variance for setback encroachments for the residenal property located on 45891 Club Dr, Indian Wells, CA 92210. Our ﬁndings have found that our parcel has special circumstances that apply only to our property and not to the adjacent parcels. Shown in Exhibit A & B included with this leer.

The special circumstances are:
• Shape: Abnormal shape of property line
• Surroundings: Adjacency to Course & Tee’s
Special Circumstances - Shape:

The property is shaped abnormally due to a Storm Channel running along the Southern property line (Golf Course Side). Reference: Assessor’s Map. Book 633, Page 26.

Special Circumstances - Surroundings:

The property is directly adjacent to the Golf course on both the Western & Southern property, a hindrance only subject to this property. This added exposure makes the property far more vulnerable and subject to frequent property damage along the south façade due to golf ball impacts, in comparison to the other properes on club drive.

ATTACHMENT 6

Page 45 of 439 ends

45891 Club Dr
Variance - Leer of Jusﬁcaon
09/05/23

Reasoning
The intent for the setback encroachment request is to extend the property 12’ along the northern side, rather than the more vulnerable southern side (Golf Course Side) to match the extents of the exisng properes adjacent on Club Drive, shown in Exhibit B.

Proposal
Proposed Plans for the extension can be seen in Exhibit C.

Thank you in advance for all your help!
Please don’t hesitate to reach out to me if you have any quesons.

Best regards,

Manuel Montalvo Jr | Principal | MAD Studio Cell: 760.578.9949 | www.MAD-studio.design

Page 46 of 439 ends

45871
45851
45751
45759
45737
45673

EDGE OF CLUB DRIVE

PROPOSED SETBACK ENCROACHMENT, TO MACTH
45871, 45851, 45751, 45759, 45737 & 45673 CLUB DR.

EXISTING EDGE OF PROPERTY, 45891 CLUB DR.

EXHIBIT A

Page 47 of 439 ends

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INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: City Manager Department
Prepared by: Angelica Avila, City Clerk
Subject: 2024 City Council Meeting Schedule

RECOMMENDED ACTIONS:

Council ADOPTS the 2024 City Council meeting schedule as presented.

DISCUSSION:

Provided for Council consideration are the proposed City Council meeting dates for the 2024 calendar year. Staff is proposing the 20 24 Council meeting calendar (Attachment #1) of one Council meeting and one tentative meeting each month which allows for a second monthly meeting if necessary. The following highlights future scheduling and proposed cancellations:

 Add (TBD) City Strategic Planning Indian Wells Golf Resort Strategic Planning.

 Add Quarterly Study Session in May, August, November

 Cancel August 2024 meetings for summer break

Staff requests discussion and direction by the Council of any other scheduling conflicts, cancellations, or additions of any other council or special meetings.

FISCAL IMPACT:

There is no fiscal impact.

ATTACHMENTS:

1. Draft 2024 Council Meeting Schedule

Page 49 of 439 ends

2024 Council Meeting Schedule
Date Type of Meeting Status
J
anuary 4 TBD – Study/Closed TBD
January 18 12:30 p.m. Closed Session
1:30 p.m. Regular Council
F
ebruary 1 TBD – Study/Closed TBD
February 15 1 2:30 p.m. Closed Session
1:00 p.m. Quarterly Housing Authority
1:30 p.m. Regular Council
M
arch 7 12:30 p.m. Closed Session
1:30 p.m. Regular Council
March 21 TBD – Study/Closed TBD
March 27 9:00 a.m. City Strategic Planning
Ap
ril 4 12:30 p.m. Closed Session
1:30 p.m. Regular Council
April 18 TBD – Study/Closed TBD
April 25 9:00 a.m. Golf Resort Strategic Planning
M
ay 2 TBD – Study/Closed (SCAG) TBD
May 16 1:00 p.m. Quarterly Housing Authority
12:30 p.m. Closed Session TBD
1:30 p.m. Regular Council
J
une 6 TBD – Study/Closed TBD
June 20 12:30 p.m. Closed Session
1:30 p.m. Regular Council
J
uly 4 HOLIDAY (Cancelled)
July 18 12:30 p.m. Closed Session
1:30 p.m. Regular Council
A
ugust 1 12:30 p.m. Closed Session TBD
1:00 p.m. Quarterly Housing Authority
1:30 p.m. Regular Council
A
ugust 15 TBD – Study/Closed TBD
ATTACHMENT #1

Page 50 of 439 ends

Date Type of Meeting Status

September 5 12:30 p.m. Closed Session
1:30 p.m. Regular Council
September 19 TBD – Study/Closed TBD

October 3 12:30 p.m. Closed Session TBD
1:30 p.m. Regular Council
October 17 TBD – Study/Closed TBD

November 7 12:30 p.m. Closed Session
1:00 p.m. Quarterly Housing Authority
1:30 p.m. Regular Council
November 21 TBD – Study/Closed TBD

December 5 TBD – Study/Closed TBD
December 19 12:30 p.m. Closed Session
1:30 p.m. Regular Council

Page 51 of 439 ends

26529.00000\40894685.2

INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: City Manager Department
Prepared by: Angelica Avila, City Clerk
Subject: 2024 City Council Assignments to Various Internal and External Committees

RECOMMENDED ACTIONS:

Council APPROVES the 2024 City Council Committee Assignments.

BACKGROUND:

Annually, the Council reviews the various City Council Committee assignments to coincide with the rotation of the City Council, especially those committees where the Mayor and/or Mayor Pro Tem serve. In addition, Mr. Sanders and Mr. Whitman have agreed to switch their roles to the Coachella Valley Economic Partnership and Visit Greater Palm Springs where they both currently serve as the representatives. The changes to the 2024 Council assignments (Attachment #1) are listed below:

 Coachella Valley Association of Governments Executive Committee: Sanders  City Personnel Committee: Sanders and second representative Mayor Pro Tem  Tee Committee: Sanders and second representative Mayor Pro Tem  Visit Greater Palm Springs: Sanders
 Coachella Valley Economic Partnership: Whitman

FISCAL IMPACT:

Outside organizations and regional authorities may provide a stipend, compensations, or reimbursement of expenses. Income derived from serving on these outside organizations and regional authorities is to be reported as required by the FPPC (Form 806) filed in the City Clerk’s office (Attachment #2).

Expenses for Council Members serving on these boards is reimbursed by the City if not covered by the outside organization.

Page 52 of 439 ends

26529.00000\40894685.2

ATTACHMENTS:

1. 2024 Committee Assignments Reference Sheet

2. FPPC Form 806- Official Assignments

Page 53 of 439 ends

Regional Committees
California JPIA
Member: 1 elected official
Meets: Meeting date/time varies
Location: La Palma, CA
Stipend Pai d
Coachella Valley Mountains Conservancy
Member: 1 elected official
Meets: 2nd Monday of every other month at 3:00 p.m.
(Jan, Mar, May, July, Sept, Nov)
Location: 73-710 Fred Waring Drive, Palm Desert Conf. Room 115 Stipend Pai d
Cove Communities Services Commission
Member: 2 elected officials
Meets: As need basis
Location: Rotation between three Cove Cities
Riverside Co. Transportation Commission (RCTC)
Member: 1 elected official and 1 alternate
Meets: 2nd Wednesday of each month at 9:30 a.m.

Location: RCTC Office in Riverside
Stipend Pai d
Coachel la Vall ey Commi ttees
Coachella Valley Animal Campus
Member: 1 elected official, 1 alternate
Meets: 1st Thursday of every other month at 9:30 a.m.
(February, May, August, Novemebr)
Location: CVAG Office or Animal Campus
Coachella Valley Economic Partnership
Member: 1 elected official
Meets: 3 rd Wednesday of each month at 8:00 a.m.

Location: V aries
CVAG Coachella Valley Conservation Commission
Member: 1 elected official, 1 alternate
Meets: 2nd Thursday of each month at 10:30 a.m.

Location: C VAG Offices
Stipend Pai d
CVAG Energy & Sustainability Committee
Member: 1 elected official, 1 alternate
Meets: 2nd Thursday of each month at Noon
Location: C VAG Offices
Stipend Pai d
CVAG Executive Committee
Member: 1 elected official (Mayor)
& City Manager
Meets: Last Monday of each month at 4:30 p.m.

Location: CVAG Offices
Stipend Pai d
CVAG Homelessness
Member: 1 elected official, 1 alternate
Meets: 3rd Wednesday of each month at 10:00 a.m.

Location: CVAG Offices
Stipend Pai d
2024 COUNCIL COMMITTEE ASSIGNMENTS
Sanders n/a
Reference Sheet
Representative Alternate
Reed n/a
Peabody Reed
Reed Peabody
Whitman n/a
Peabody
Whitman n/a
Griffith Reed
Griffith Reed
Griffith Sanders
Sanders n/a
ATTACHMENT #1

Page 54 of 439 ends

Member: 1 elected official, 1 alternate
Meets: 2nd Monday of each month at 9:00 a.m.

Location: CVAG Offices
Stipend Paid
CVAG Transportation
Member: 1 elected official, 1 alternate
Meets: 1st Monday of each month at 10:00 a.m.

Location: CVAG Offices
Stipend Paid
Desert Sands Unified School District
Member: 2 elected officials
Meets: As needed basis
Location: City Hall
Visit Greater Palm Springs
Member: 1 elected official, 1 alternate
Meets: Dates Vary - 8:30 a.m.

Location: Varies
Stipend Paid
Sunline Transit Agency
Member: 1 elected official, 1 alternate
Meets: 4th Wednesday of each month at Noon
Location: Sunline Transit Agency Board Room
Stipend Paid
Indian Wells Committees
Community Activities Committee
Member: 1 elected official, 1 alternate
Meets: 2nd Thursday of each month at 3:00 p.m.

Location : City Hall
Golf Advisory Committee
Member: 2 elected officials
Meets: 4th Tuesday of each month at 2:00 p.m.

Location : City Hall/Indian Wells Golf Resort
Grants In Aid Committee
Member: 1 elected official, 1 alternate
Meets: 2nd Tuesday of each month at 2:30 p.m.

Location : City Hall
Marketing Committee
Member: 2 elected officials
Meets: As need basis
Location: City Hall
Council Standing Committees
Finance/Legal Services Oversight
Member: 2 elected officials
Meets: As need basis
Personnel (Mayor & Mayor Pro Tem)
Member: 2 elected officials
Meets: As need basis
Public Safety Committee
Member: 2 elected officials
Meets: Third Wednesday of the month at 3:00 p.m. (quarterly basis) January, April, July, and October
Tee Committee (Mayor & Mayor Pro Tem)
Meets: As need basis, based on Hotel Partners Request
Whitman
Sanders n/a
Sanders Peabody
Griffith Sanders
Peabody Reed
Reed Peabody
n/a
Griffith n/a
Peabody n/a
Griffith Sanders
Peabody
Whitman
Sanders
TBD
TBD
Whitman
Sanders n/a
Griffith n/a
Sanders n/a
Sanders
CVAG Public Safety _______________ _____________Reed Griffith Representative Alternate

Page 55 of 439 ends

FPPC Form 806 (1/18)
FPPC Toll-Free Helpline: 866/ASK-FPPC (866/275-3772)
Comment:

A Public Document
Appt Date and
Length of Term
Agency Report of:

Public Official Appointments

2. Appointments

3. Verification
I have read and understand FPPC Regulation 18702.5. I have verified that the appointment and information identified above is true to the best of my information and belief.

Signature of Agency Head or Designee Print Name Title (Month, Day, Year) Agency Boards and
Commissions Name of Appointed Person Per Meeting/Annual Salary/Stipend (Last, First)
(Last, First)
(Last, First)
(Last, First)
Alternate, if any
Alternate, if any
Alternate, if any
Alternate, if any
(Last, First)
(Last, First)
(Last, First)
(Last, First)
Name
Name
Name
Name
$0-$1,000
$0-$1,000
$0-$1,000
$0-$1,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
Other
Other
Other
Other
California
Form

1. Agency Name
Designated Agency Contact (Name,Title)
E-mail
Division, Department, or Region (If Applicable)
806
For Official Use Only
Area Code/Phone Number
(Month, Day, Year)
 ____/____/____
Appt Date
 ____/____/____
Appt Date
 ____/____/____
Appt Date
 ____/____/____
Appt Date

Length of Term

Length of Term

Length of Term

Length of Term
 Estimated Annual:
 Estimated Annual:
 Estimated Annual:
 Estimated Annual:
$  Per Meeting:
$  Per Meeting:
$  Per Meeting:
$  Per Meeting:

Page _____ of _____
Date Posted:

ATTACHMENT #2
City of Indian Wells
760/346-2489
California Joint Powers
Insurance Authority

95.00 Coachella Valley
Mountains Conservancy

75.00 Riverside County
Transportation
Commission &
Sub-committees (no
additional stipend if held
on regular meeting date)
100 + 100
Coachella Valley
Association of
Governments -
Conservation
Commission

100.00

Page 56 of 439 ends

FPPC Form 806 (1/18)
FPPC Toll-Free Helpline: 866/ASK-FPPC (866/275-3772)
A Public Document
Appt Date and
Length of Term
Agency Report of:

Public Official Appointments
Continuation Sheet

2. Appointments
Agency Boards and
Commissions Name of Appointed Person Per Meeting/Annual Salary/Stipend (Last, First)
(Last, First)
(Last, First)
(Last, First)
Alternate, if any
Alternate, if any
Alternate, if any
Alternate, if any
(Last, First)
(Last, First)
(Last, First)
(Last, First)
Name
Name
Name
Name
$0-$1,000
$0-$1,000
$0-$1,000
$0-$1,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
Other
Other
Other
Other
California
Form

1. Agency Name
806
(Month, Day, Year)
Date Posted:
 ____/____/____
Appt Date
 ____/____/____
Appt Date
 ____/____/____
Appt Date
 ____/____/____
Appt Date

Length of T erm

Length of T erm

Length of T erm

Length of T erm
 Estimated Annual:
 Estimated Annual:
 Estimated Annual:
 Estimated Annual:
$  Per Meeting:
$  Per Meeting:
$  Per Meeting:
$  Per Meeting:
(Last, First)
(Last, First)
Alternate, if any
Alternate, if any
(Last, First)
(Last, First)
Name
Name
$0-$1,000
$0-$1,000
$1,001-$2,000
$1,001-$2,000
$2,001-$3,000
$2,001-$3,000
Other
Other
 ____/____/____
Appt Date
 ____/____/____
Appt Date

Length of T erm

Length of T erm
 Estimated Annual:
 Estimated Annual:
$  Per Meeting:
$  Per Meeting:

Page _____ of _____
City of Indian Wells
Coachella Valley
Association of
Government - Energy
Committee

100.00
Coachella Valley
Association of
Governments - Executive
Committee
125.00
Coachella Valley
Association of
Governments -
Homelessness
Committee
100.00
Coachella Valley
Association of
Governments - Public
Safety
100.00
Coachella Valley
Association of
Governments -
Transportation Committee
100.00
Visit Greater Palm
Springs

50.00

Page 57 of 439 ends

26529.00000\40894685.2

Revised Staff Report
12/4/2023

INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: City Manager Department
Prepared by: Angelica Avila, City Clerk
Subject: 2024 City Council Assignments to Various Internal and External Committees

RECOMMENDED ACTIONS:

Council APPROVES the 2024 City Council Committee Assignments.

BACKGROUND:

Annually, the Council reviews the various City Council Committee assignments to coincide with the rotation of the City Council, especially those committees where the Mayor and/or Mayor Pro Tem serve. In addition, Mr. Sanders and Mr. Whitman have agreed to switch their roles to the Coachella Valley Economic Partnership and Visit Greater Palm Springs where they both currently serve as the representatives. Mr. Reed and Mr. Whitman have agreed to switch roles to the Indian Wells Marketing Committee and CVAG Public Safety Committee. The changes to the 2024 Council assignments (Attachment #1) are listed below:

FISCAL IMPACT:

Outside organizations and regional authorities may provide a stipend, compensations, or reimbursement of expenses. Income derived from serving on these outside organizations

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26529.00000\40894685.2

Revised Staff Report
12/4/2023

and regional authorities is to be reported as required by the FPPC (Form 806) filed in the City Clerk’s office (Attachment #2).

Expenses for Council Members serving on these boards is reimbursed by the City if not covered by the outside organization.

ATTACHMENTS:

1. 2024 Committee Assignments Reference Sheet

2. FPPC Form 806- Official Assignments

Page 59 of 439 ends

Location: V aries
CVAG Coachella Valley Conservation Commission
Member: 1 elected official, 1 alternate
Meets: 2nd Thursday of each month at 10:30 a.m.

Location: CVAG Offices
Stipend Pai d
CVAG Homelessness
Member: 1 elected official, 1 alternate
Meets: 3rd Wednesday of each month at 10:00 a.m.

REVISED

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Member: 1 elected official, 1 alternate
Meets: 2nd Monday of each month at 9:00 a.m.

Location: CVAG Offices
Stipend Paid
CVAG Transportation
Member: 1 elected official, 1 alternate
Meets: 1st Monday of each month at 10:00 a.m.

Location : City Hall
Golf Advisory Committee
Member: 2 elected officials
Meets: 4th Tuesday of each month at 2:00 p.m.

Location : City Hall/Indian Wells Golf Resort
Grants In Aid Committee
Member: 1 elected official, 1 alternate
Meets: 2nd Tuesday of each month at 2:30 p.m.

Location : City Hall
Marketing Committee
Member: 2 elected officials
Meets: As need basis
Location: City Hall
Council Standing Committees
Finance/Legal Services Oversight
Member: 2 elected officials
Meets: As need basis
Personnel (Mayor & Mayor Pro Tem)
Member: 2 elected officials
Meets: As need basis
Public Safety Committee
Member: 2 elected officials
Meets: Third Wednesday of the month at 3:00 p.m. (quarterly basis) January, April, July, and October
Tee Committee (Mayor & Mayor Pro Tem)
Meets: As need basis, based on Hotel Partners Request
Whitman
Sanders n/a
Sanders Peabody
Griffith Sanders
Peabody Reed
Reed Peabody
n/a
Griffith n/a
Peabody n/a
Griffith Sanders
Peabody
Reed
Sanders
TBD
TBD
Whitman
Sanders n/a
Griffith n/a
Sanders n/a
Sanders
CVAG Public Safety
Representative Alternate
_______________ ______________Whitman Griffith

Page 61 of 439 ends

INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: City Manager Department
Prepared by: Angelica Avila, City Clerk
Subject: City Council Members Attendance at 2024 Events

RECOMMENDED ACTIONS:

Council APPROVES the attendance of Council Member/s at 2024 events identified in the staff report; and

AUTHORIZES any normal and reasonable reimbursement of expenses incurred by any Council Member for the events identified in the staff report.

DISCUSSION:

Pursuant to Section 101 of the City Charter, the City Council must approve in advance the reimbursement of ord inary and necessary expenses incurred in the performance of one’s duties as a Member of the City Council, Mayor Pro Tem, or Mayor. This report identifies normal meetings, conferences and events Council Member/s may be attending each year. Council Members are assigned to represent the City on Committees and organizations included in the list below and may incur expenses. While the pandemic has caused the cancelation or shifted to virtual event platforms, Staff is still seeking Council approval of the following events:

National League of Cities

o Annual City Summit

League of California Cities
o Annual Conference and Expo
o League Leaders Workshop
o City Leaders Summit (League Legislative Action Day)
o Mayor & Council Members Executive Forum
o New Mayors and Council Members Academy
o Division Meetings (Executive Committee and General Membership Meetings)

Page 62 of 439 ends

o Policy Committee Meetings (quarterly)
o League Sponsored Workshops and Seminars

County of Riverside
o Riverside County Agency and Department Meetings
o Riverside County Fair & National Date Festival Events o State of the County Event
o Supervisor Perez or Board of Supervisors Sponsored Events

Regional Organizations Regular and Committee Meetings
o California Joint Powers Insurance Authority (CJPIA)
o Coachella Valley Animal Campus
o Coachella Valley Association of Governments (CVAG)
 Coachella Valley Conservation Commission
 Energy and Environmental Resources
 Executive Committee
 Homelessness
 Public Safety
 Transportation
o Coachella Valley Economic Partnership (CVEP)
o Coachella Valley Mountains Conservancy
o Cove Communities Services Commission
o Desert Valleys Builders Association (DVBA)
o Greater Palm Springs Convention and Visitors Authority o Los Angeles-San Diego-San Luis Obispo (LOSSAN) Rail Corridor o Riverside County Transportation Commission (RCTC)
 Eastern Riverside County Programs and Projects Committee  Mobility 21 Summit
o Sunline Transit Agency
o Western Riverside Council of Governments (WRCOG)

Miscellaneous
o BNP Paribas Tournament Events
o Acrisure Arena Events
o California Contract Cities Association Events
o California State University San Bernardino Events
o City of Indian Wells Sponsored Events
o City of Indian Wells Internal Committee Travel

Page 63 of 439 ends

o College of the Desert Events
o Desert Town Hall Lecture Series Events
o Federal or State Legislative Hearings, Federal Departments, State Offices, Other Agencies Hearings, or meetings with Federal or State Legislators o Hospitality Award Events
o Indian Wells Arts Festival
o Indian Wells, Greater Coachella Valley Chamber of Commerce, or other Local Chambers of Commerce Events
o Indian Wells Historical Preservation Events
o Indian Wells Pro Am Golf Invitational Events
o International Council of Shopping Centers (ICSC) Events o Ironman Indian Wells-La Quinta 70.3 Events
o Joslyn Center Events
o The Living Desert Events
o Modernism Week Events
o Public Safety Award Events
o Salton Sea Restoration Events
o Senior Inspiration Awards Luncheon
o Southern California Association of Governments Events o University of California Riverside Events

FISCAL IMPACT:

The above items are included in the annual budget and do not create a new financial impact.

Page 64 of 439 ends

Revised Staff Report
12/4/2023

INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: City Manager Department
Prepared by: Angelica Avila, City Clerk
Subject: City Council Members Attendance at 2024 Events

RECOMMENDED ACTIONS:

Council APPROVES the attendance of Council Member/s at 2024 events identified in the staff report; and

AUTHORIZES any normal and reasonable reimbursement of expenses incurred by any Council Member for the events identified in the staff report.

DISCUSSION:

National League of Cities

o Congressional City Conference

Page 65 of 439 ends

Revised Staff Report
12/4/2023

o Policy Committee Meetings (quarterly)
o League Sponsored Workshops and Seminars

Page 66 of 439 ends

Revised Staff Report
12/4/2023

FISCAL IMPACT:

The above items are included in the annual budget and do not create a new financial impact.

Page 67 of 439 ends

INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: City Manager Department
Prepared by: Chris Freeland, City Manager
Subject: Council Ad Hoc Governance Committee Representative

RECOMMENDED ACTIONS:

Council APPROVES the change of the Ad Hoc Committee Representative from Councilmember Reed to Mayor Sanders.

BACKGROUND:

On April 6, 2023, Councilmember Bruce Whitman requested a discussion be placed on a future agenda relating to City Governance. The City Council discussed and authorized the formation of an Ad Hoc Committee consisting of Council Member Reed and Council Member Whitman at the May 18, 2023, Council meeting. Mr. Reed has delegated his role to the Ad Hoc Committee to Mayor Sanders.

The Ad Hoc Committee is currently reviewing the City’s governing documents. The Council is seeking guidance on how to educate the community on the role and importance of each of these governing documents. The City Council has an interest in reviewing and making possible revisions. Institutional structures of California cities provide guidance on how cities are governed. Cities are typically categorized as either being a general law or charter city framework, operate under the city manager-council or mayor-council form of government, and provide services to the community either independently (e.g., own police and fire department) or as a contract city. Indian Wells is a charter city that operates under the city manager-council form of government and provides many services to the community through various contracts (e.g., Riverside County Sheriff for police and CalFire for fire services). This structure in Indian Wells, along with numerous documents, policies and procedures, and norms all influence how Indian Wells is governed.

As a City Manager-Council form of government, the Indian Wells City Council serves as the policy makers who are responsible for establishing the priorities and stra tegic goals of the community . The city manager is responsible for managing the day -to-day operations of the city, implementing city council policies, and recommending changes to programs and projects to the city council for their consideration.

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The City of Indian Wells is subject to several governing and operational documents, including:

 California State Constitution and various State codes  Indian Wells Charter
 Municipal Code
 City Council Policy Manual
 Employment Agreement with the City Manager
 Employment Agreement with the City Attorney
 Other various contracts (e.g., Troon Golf, Riverside County Sheriff's Department, CalFire, etc.).

The Ad Hoc Committee will provide the City Council a recommendation and guidance on how to educate the community at a future meeting.

Page 69 of 439 ends

INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: Finance Department
Prepared by: Ruby D. Walla, Assistant Finance Director
Subject: Annual Developer Impact Fee Report

RECOMMENDED ACTIONS:

Council APPROVES the Annual Developer Impact Fee Report submitted for the Fiscal Year 2022-23.

BACKGROUND:

Within the mandated 180 -day timeframe following the fiscal year's conclusion, the City must present a comprehensive report detailing the allocation and utilization of developer impact fees, adhering to the provisions outlined in California Government Code Chapter 5, Section 66000. The City has consistently maintained compliance with the specified conditions. Enclosed are schedules outlining expenditures and total revenu es subject to the five -year limitation per the California Government Code. This report provides a comprehensive and transparent overview of the City's utilization of developer impact fees during the fiscal year 2022/23.

On June 2, 2022, the City Council thoroughly reviewed the Development Impact Fee Nexus Study and subsequently approved modifications to the City's Developer Impact Fees. The revised fees, effective from August 1, 2022, introduced three new Developer Impact Fees: Park Facilities Fee, Recreation Facilities Fee, and Storm Drain Facilities Fee.

The Transportation Facilities Fee was also instituted, replacing the Highway 111 Circulation Improvement Fee. The residual fund balance of the replaced Highway 111 Circulation Improvement Fee is allocated according to its original purpose.

FISCAL IMPACT:

During the Fiscal Year 2022-23, the City collected $682,348 in developer fees designated for diverse capital projects throughout the municipal area. In specific instances, these fees were utilized to reimburse advances from alternative funds, enabling the immediate implementation of public improvements without delay.

Page 70 of 439 ends

Park Facilities Fees

Park Facilities Fees, initiated on August 1, 2022, totaled $21,032 during the fiscal year 2022/23. These funds are designated for acquiring parkland, developing new facilities, and enhancing existing facilities to accommodate new developments. These funds are being utilized for Fairway Park.

Recreation Facilities Fees

Similarly, Recreation Facilities Fees, effective August 1, 2022, amounted to $172,568 in the fiscal year 2022/23. These funds are presently c ommitted to the Energy Efficiency project and annual debt service obligations of the 2022 lease revenue bonds. As of June 30, 2023, $434,825 has been transferred to the Indian Wells Financing Authority Fund.

Park-in-Lieu Fees

Park-in-Lieu Fees, utilized for the construction of recreation and open spaces, totaled $111,021 in the fiscal year 2022/23. Collaborative efforts with the Desert Recreation District enabled open space acquisition to construct Fairway Park , with the remaining advance as of June 30, 2023, totaling $1,375,313.

Citywide Public Improvement Fees

Citywide Public Improvement fees are used to acquire and construct general capital improvement projects. In 2005, the City advanced the Citywide Public Improvement fund of $3,750,000 to build a portion of the Miles Avenue Bridge Project. Since 2005, the City has collected $3,382,960 for this purpose. Additionally, the fees collected are committed to funding the Energy Efficiency project and the annual debt service obligations of the 2022 lease revenue bonds. As of June 30, 2023, the Citywide Public Improvement Fees Fund has transferred $150,000 to the Indian Wells Financing Authority Fund.

Art in Public Places Fees

Art in Public Places Fees, supporting public art and culture initiatives, amounted to $182,409 during the fiscal year 2022/23. The City is actively developing a new Art in Public Places project aligned with Council Goals. A portion of the this funding is being used for Fairway Park.

Highway 111 Circulation Improvement Fees

Highway 111 Circulation Improvement fees finance capital improvements along Highway 111. The City collected $17,550 in Highway 111 Circulation Improvement fees during the 2022/23 fiscal year. As of August 1, 2022, t his fee has been replaced by the

Page 71 of 439 ends

Transportation Facilities Fee. The remaining fund balance of $37,299 will be spent on the intended purpose for which the fees were collected.

Transportation Facilities Fees

The Transportation Facilities Fees, effective August 1, 2022, have replaced the Highway 111 Circulation Improvement Fee. In the fiscal year 2022/23, the City accumulated $86,152 in Transportation Facilities Fees, with current commitments directed toward the Energy Efficiency project and the annual debt service obligations of the 2022 lease revenue bonds. As of June 30, 2023, the Transportation Facilities Fee fund has contributed $150,000 to the Indian Wells Financing Authority Fund.

Storm Drain Facilities Fees

As of June 30, 2023, the City has yet to generate revenue from Storm Drain Facilities fees designated for infrastructure improvements to accommodate new development, including potential projects along the Whitewater storm channel.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that the ordinance is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a “project” as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

ATTACHMENTS:

1. Annual Developer Impact Fees Report

Page 72 of 439 ends

City of Indian Wells
Park Facilities Fees - Fund 310
As of June 30, 2023
The purpose of this fee is to fund park facilities to meet the demands of new development.

Fee Schedules are available in the Building Department.

PART 1
Cash Balance, Revenue, Expenditures, Ending Cash Balance 06/30/23
Revenue 21,032
Interest (129)
TOTAL REVENUE 20,903
Expenditures -
Capital Reserve -
Revenue Over (Under) Expenditures 20,903
Beginning Fund Balance -
Ending Fund Balance 20,903
PART 2
Compliance With Government Code 66001
Projects:
06/30/23
-

TOTAL -
Expenditures to Date -
Revised: 11/16/2023,5:13 PM T:\Kevin\financial analysis and fee studies\developer impact fees\current developer impact fees\Dev-fee fy23 ATTACHMENT #1

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City of Indian Wells
Recreation Facilities Fees - Fund 313
As of June 30, 2023
The purpose of this fee is to fund recreation facilities to meet the demands of new development.

Fee Schedules are available in the Building Department.

PART 1
Cash Balance, Revenue, Expenditures, Ending Cash Balance 06/30/23
Revenue 172,568
Interest 441
TOTAL REVENUE 173,009
Expenditures 434,825
Capital Reserve -
Revenue Over (Under) Expenditures (261,816)
Beginning Fund Balance -
Ending Fund Balance (261,816)
PART 2
Compliance With Government Code 66001
Projects:
06/30/23
Transfers Out 434,825
TOTAL 434,825
Expenditures to Date 434,825
Expenditures to Date
434,825
Revised: 11/16/2023,5:13 PM T:\Kevin\financial analysis and fee studies\developer impact fees\current developer impact fees\Dev-fee fy23

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City of Indian Wells
Park - in - Lieu Fees - Fund 314
As of June 30, 2023
The fees collected by this fund are used for the acquisition, construction, and maintenance of parks, recreation and open space capital improvement projects.

Fee Schedules are available in the Building Department.

PART 1
Cash Balance, Revenue, Expenditures, Ending Cash Balance 06/30/23 06/30/22 06/30/21 06/30/20 06/30/19 Prior Years Revenue 111,021 692,999 40,194 82,504 49,168 2,104,396 Interest - - 4 126,170 TOTAL REVENUE 111,021 692,999 40,198 82,504 49,168 2,230,566 Expenditures 2,822 1,073,726 - - - 3,505,221 Capital Reserve - - - - - - Revenue Over (Under) Expenditures 108,199 (380,727) 40,198 82,504 49,168 (1,274,655) Beginning Fund Balance (1,483,513) (1,102,785) (1,142,983) (1,225,487) (1,274,655) (1,274,655) Ending Fund Balance (1,375,313) (1,483,513) (1,102,785) (1,142,983) (1,225,487) (1,274,655) PART 2
Compliance With Government Code 66001
Projects:
06/30/23 06/30/22 06/30/21 06/30/20 06/30/19 Prior Years Parkland Acquisition 1,073,726 -
Fairway Park 2,822 -
Community Development 9,480
GRIW Sand Trap Renovation 342,437
GRIW Greens 187,862
GRIW Landscape 302,027
GRIW Sprinkler Replacement 212,094
GRIW Equipment Acquisition 280,226
GRIW Course Construction 2,171,095
TOTAL 2,822 1,073,726 - - - 3,505,221 Expenditures to Date 4,581,769
Total Revenues Subject to Excess Expenditures=In Compliance 5 yr Limitation (Under) Expenditures=Non-Compliance
Expenditures to Date Through 6/30/18 As of 6/30/23
4,581,769 2,230,566 2,351,203 Revised: 11/16/2023,5:13 PM T:\Kevin\financial analysis and fee studies\developer impact fees\current developer impact fees\Dev-fee fy23

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City of Indian Wells
Citywide Public Improvement Fee - Fund 315
As of June 30, 2023
The fees collected by this fund are used for the acquisition and construction of general governmental capital improvement projects.

Fee Schedules are available in the Building Department.

PART 1
Cash Balance, Revenue, Expenditures, Ending Cash Balance 06/30/23 06/30/22 06/30/21 06/30/20 06/30/19 Prior Years Revenue 91,745 241,433 79,648 151,829 104,538 5,849,850 Interest 359 (11,988) (67) 1,970 - 873,139 TOTAL REVENUE 92,104 229,445 79,581 153,799 104,538 6,722,989 Expenditures 150,000 229,314 154,081 79,300 102,049 6,725,477 Revenue Over (Under) Expenditures (57,896) 131 (74,500) 74,499 2,489 (2,488) Beginning Fund Balance 131 (0) 74,500 1 (2,488) 1 Ending Fund Balance (57,765) 131 (0) 74,500 1 1 PART 2
Compliance With Government Code 66001
Projects:
06/30/23 06/30/22 06/30/21 06/30/20 06/30/19 Prior Years Civic Cntr Corp Yard 74,024
Civic Center Dev 18,465
Sheriff Sub Station 6,133
Add'l Bus Shelters 37,800
Emg.Generator 12,500
Council Cham.Modif. 16,371
ADA Upgrade-City Hall 2,847
Racquet Cl. Signal 21,322
Racquet Cl.Entrance 9,788
Hwy 111 Medians 22,301
City Hall Expansion 1,132,499
Civic Center Improvements 136,073
Miles Ave Bridge 229,314 154,081 79,300 104,538 2,815,727 Transfers Out 150,000 2,417,138
TOTAL 150,000 229,314 154,081 79,300 104,538 6,722,988 Expenditures to Date 7,440,221
Total Revenues Subject to Excess Expenditures=In Compliance 5 yr Limitation (Under) Expenditures=Non-Compliance
Expenditures to Date Through 6/30/18 As of 6/30/23
7,440,221 6,722,989 717,232 Revised: 11/16/2023,5:13 PM T:\Kevin\financial analysis and fee studies\developer impact fees\current developer impact fees\Dev-fee fy23

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City of Indian Wells
Art in Public Places - Fund 319
As of June 30, 2023
The fees collected by this fund are used to support art and culture throughout the city.

Fee Schedules are available in the Building Department.

PART 1
Cash Balance, Revenue, Expenditures, Ending Cash Balance 06/30/23 06/30/22 06/30/21 06/30/20 06/30/19 Prior Years Revenue 182,409 161,488 15,630 26,283 15,092 1,443,180 Interest 11 (14,702) 365 4,741 5,602 168,516 TOTAL REVENUE 182,420 146,786 15,995 31,024 20,694 1,611,696 Expenditures - - - 41,259 5,717 1,468,580 Revenue Over (Under)
Expenditures 182,420 146,786 15,995 (10,235) 14,977 143,117 Beginning Fund Balance 311,734 164,948 148,954 159,189 144,212 676,362 Ending Fund Balance 494,154 311,734 164,948 148,954 159,189 144,212 PART 2
Compliance With Government Code 66001
Projects:
06/30/23 06/30/22 06/30/21 06/30/20 06/30/19 Prior Years Planning 186
Art study 3,029
Path of the Bighorn Ram Art 12,000
Grove Gate North 529
City Monuments 45
Civic Center Enhance. 98
Walk of Honor Memorial 326,416
Entrance Signs 80,809
Indian Wells Lane Fountains 65,800
Indian Wells Golf Resort 224,061
Cook/Hwy 111 Entry Monuments - - - 41,259 5,717 563,687 Carl Bray Interpretive Exhibit 191,919
TOTAL - - - 41,259 5,717 1,468,579 Expenditures to Date 1,515,556
Total Revenues Subject to Excess Expenditures=In Compliance 5 yr Limitation (Under) Expenditures=Non-Compliance
Expenditures to Date Through 6/30/18 As of 6/30/23
1,515,556 1,611,696 (96,141) Revised: 11/16/2023,5:13 PM T:\Kevin\financial analysis and fee studies\developer impact fees\current developer impact fees\Dev-fee fy23

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City of Indian Wells
Highway 111 Circulation Improvement Fee - Fund 321
As of June 30, 2023
The fees collected by this fund are used to finance Highway 111 capital improvement projects.

This fee has been replaced by the Transportation Facilities Fee.

The remaining fund balance will spent on the purpose for which they were collected.

Fee Schedules are available in the Building Department.

PART 1
Cash Balance, Revenue, Expenditures, Ending Cash Balance 06/30/23 06/30/22 06/30/21 06/30/20 06/30/19 Prior Years Revenue 17,550 49,725 - - - 195,228 Interest 61 (1,048) - - - 60,354 TOTAL REVENUE 17,611 48,677 - - - 255,582 Expenditures - - - - - 284,571 Capital Reserve
Revenue Over (Under) Expenditures 17,611 48,677 - - - (28,989) Beginning Fund Balance 19,688 (28,989) (28,989) (28,989) (28,989) (28,989) Ending Fund Balance 37,299 19,688 (28,989) (28,989) (28,989) (28,989) PART 2
Compliance With Government Code 66001
Projects:
06/30/23 06/30/22 06/30/21 06/30/20 06/30/19 Prior Years Hwy. 111 Landscape Replacement 283,963
Hwy. 111 Medians 48
Hwy. 111 Medians 560
TOTAL - - - - - 284,571 Expenditures to Date 284,571
Total Revenues Subject to Excess Expenditures=In Compliance 5 yr Limitation (Under) Expenditures=Non-Compliance
Expenditures to Date Through 6/30/18 As of 6/30/22
284,571 255,582 28,989 Revised: 11/16/2023,5:13 PM T:\Kevin\financial analysis and fee studies\developer impact fees\current developer impact fees\Dev-fee fy23

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City of Indian Wells
Transportation Facilities Fees - Fund 311
As of June 30, 2023
The purpose of this fee is to fund construction improvements that add capacity to the system of transportation facilities that serves new development.

This fee replaces the Highway 111 Circulation Improvement Fee.

Fee Schedules are available in the Building Department.

PART 1
Cash Balance, Revenue, Expenditures, Ending Cash Balance 06/30/23
Revenue 86,152
Interest 220
TOTAL REVENUE 86,372
Expenditures 150,000
Capital Reserve -
Revenue Over (Under) Expenditures (63,628)
Beginning Fund Balance -
Ending Fund Balance (63,628)
PART 2
Compliance With Government Code 66001
Projects:
06/30/23
Transfers Out 150,000
TOTAL 150,000
Expenditures to Date 150,000
Expenditures to Date
150,000
Revised: 11/16/2023,5:13 PM T:\Kevin\financial analysis and fee studies\developer impact fees\current developer impact fees\Dev-fee fy23

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City of Indian Wells
Storm Drain Facilities Fees - Fund 312
As of June 30, 2023
The purpose of this fee is to fund improvements and infrastructure to add to the system of storm drain facilities to serve new development.

Fee Schedules are available in the Building Department.

PART 1
Cash Balance, Revenue, Expenditures, Ending Cash Balance 06/30/23
Revenue -
Interest -

TOTAL REVENUE -
Expenditures -
Capital Reserve -
Revenue Over (Under) Expenditures -
Beginning Fund Balance -
Ending Fund Balance -
PART 2
Compliance With Government Code 66001
Projects:
06/30/23
-

TOTAL -
Expenditures to Date -
Expenditures to Date
-
Revised: 11/16/2023,5:13 PM T:\Kevin\financial analysis and fee studies\developer impact fees\current developer impact fees\Dev-fee fy23

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INDIAN WELLS CITY COUNCIL
December 7, 2023

To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, Finance Director
Subject: Annual Financial Report for the Fiscal Year Ending June 30, 2023

RECOMMENDED ACTIONS:

Council RECEIVES and FILES the City’s Annual Financial Report for the fiscal year ending June 30, 2023.

BACKGROUND:

Government Code 26909 (a) mandates that the City, in its capacity as a local agency of the County, engage the services of a certified public accountant to conduct an annual examination of the City's financial accounts and records, with the requirement that such an audit adheres to generally accepted auditing standards. Furthermore, Government Code 26909 (b) stipulates that an audit report must be submitted to the State Controller and the County Auditor in the district of the City within six months of the co nclusion of the fiscal year. Therefore, this report has been prepared in compliance with these obligations for the fiscal year ending on June 30, 2023.

The independent auditor's report is presented in the financial section of the Annual Financial Report. Following this report, the Management's Discussion and Analysis (MD&A) offers a detailed narrative introduction, overview, and analysis of the fundamental financial statements. It is important to note that the MD&A complements the transmittal letter and should be read in conjunction with it.

We encourage residents to examine the City's Annual Financial Report, which is accessible on the City's official website at http://www.cityofindianwells.org. Additionally, our staff will submit the Financial Report to the Government Finance Officers Association for consideration of its annual "Certificate of Achievement for Excellence in Financial Reporting" award. The City has been honored with this accolade continuously since 1991.

The Certificate of Achievement for Excellence in Financial Reporting is prestigious for government organizations that exemplify exceptional financial reporting practices. This recognition is conferred by the Government Finance Officers Association (GFOA), a professional association for government finance officials.

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This certificate symbolizes the commitment of a government organization to transparent and accurate financial reporting. It acknowledges organizations that excel in conveying their financial performance, ultimately fostering accountability and trust in their financial management.

Finance Committee Recommendation:

The Annual City Audit

The Finance Committee convened with Davis Farr on November 21, 2023, to evaluate the audit results. Davis Farr presented the results of the audi t during the meeting and responded to the Committee's inquiries and comments. Consequently, the Finance Committee recommends the approval of the financial statements as presented.

Davis Farr has issued an unqualified opinion on the City of Indian Wells' Annual Financial Report for the fiscal year ending June 30, 2023. An unqualified opinion represents the most favorable outcome that any City can attain on its audit . Furthermore, the City's annual audit has revealed no material deficiencies in the internal control structure or violations of applicable laws and regulations.

Davis Farr spent approximately 900 hours examining the City's financial records and ascertained that the City's internal controls and accounting procedures comply with all relevant compliance requirements and testing protocols. The auditor is responsible for communicating any audit -related matters deemed relevant to those overseeing the financial reporting process based on their professional judgment.

In addition to the auditor's formal c ommunication, Davis Farr directly reports to the Finance Committee following each audit. As part of the City's annual audit process, these reviews ascertain the adequacy of the internal control structure and confirm the City's adherence to pertinent laws and regulations.

New Vendor Audits

The Finance Committee is dedicated to elevating the City's annual audit procedures.

Notably, the introduction of an expanded contract compliance audit involving significant City vendors represents an innovative inclusion in the City's testing protocols. These comprehensive audits focus on assessing operational compliance, validating the quality and quantity of services or goods received in relation to payments made, and evaluating financial performance as applicable.

The emphasis on these in-depth audits that evaluate operational compliance, validate the quality and quantity of services or goods, and assess financial performance reflects a

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thorough and comprehensive evaluation process. This ensures a holistic rev iew of financial activities, enhancing the overall effectiveness of the audit procedures.

Upon uncovering findings through the enhanced audit procedures, the Finance Committee is poised to institute targeted improvements that align with best practices and Fiscal Policy standards. This proactive approach underscores the Committee's commitment to identifying areas of concern and swiftly addressing and rectifying any deficiencies. Leveraging the insights gained from the in-depth audits, the Committee will collaborate with relevant stakeholders to implement robust remedial measures, ensuring the City's financial operations adhere to the highest standards. This commitment to continuous improvement reflects a dynamic and responsive financial governance framework, reinforcing the City's fiscal responsibility and resilience in the face of evolving challenges.

The Riverside County Sheriff’s Department

The Riverside County Sheriff’s Department audit included ten separate auditing procedures that focused on contract delivery and compliance. Procedures included hourly billing rates, reconciliation of monthly invoices, personnel rates, facility rates, employee timesheets, patrol service hours, non -dedicated and dedicated positions, and calls for service.

The results of the audit displayed a high compliance with the contract. All the invoices were calculated without exception. The calculation of facility charges is consistent with chargeable positions per the contract. Overtime was held to just 1.68% of the total hours billed to the City; employee timesheets reconciled to billable hours, total service hours of 30,069 were just 460 (about 1%) below contracted hours.

Vintage Landscaping

The Vintage Landscaping audit encompassed a comprehensive examination comprisin g nine distinct auditing procedures concentrating on contract delivery and compliance.

These procedures entailed confirming the vendor's standing with the State's Attorney General Office, adherence to insurance requisites, meticulous management of accounting records, a thorough review of monthly invoices, evaluation of additional work, the City's internal management procedures, and oversight of the procurement of supplies and materials.

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Throughout the audit process, two primary areas for enhancement were identified. Firstly, there is a need to ensure that Vintage Landscaping maintains accurate accounting records in accordance with the stipulated agreement. Additionally, there exist opport unities for refining the agreement to facilitate more effective internal management. Specific areas for improvement include the enhancement of written approvals for supplementary work and the clarification of upcharges associated with vendor equipment rentals.

Drawing insights from these findings, we are undertaking measures to overhaul our current agreement with Vintage Landscaping and taking steps to improve the Request For Proposal (RFP) procedures. This entails incorporating provisions for new irrigat ion and plant replacements and associated labor costs as integral components of the annual agreement. These proactive steps aim to fortify our operational processes and bolster the overall effectiveness of our vendor engagements.

Financial Transparency and Communication

Financial communication with residents and other stakeholders is a fundamental Council Goal and top priority. Throughout the year, the Council utilizes the following methods to keep residents fiscally informed:

1. Council meetings and study sessions to encourage public engagement.

2. Presentation of the financial Forecast during the Council's annual Strategic Planning sessions to encourage public engagement.

3. Finance Committee Meetings.

4. Presentation of the annual financial statements.

5. The City’s website.

6. The Mayor’s letter.

7. Fiscal update eblasts.

8. The Financial Primer mailer was sent to all residents.

9. The Capital Improvements overview mailer was sent to all residents.

10. The Indian Wells Check Book is on the city’s website.

11. The Budget at a Glance mailer was sent to all residents.

12. Resident meetings with the City’s Finance Director.

13. Coffee with the City Manager.

ATTACHMENTS:

1. City Financial Statements

2. The Riverside County Sheriff’s Department Special Audit

3. The Vintage Landscaping Special Audit

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City of Indian Wells, California
Annual Comprehensive Financial Report
Year Ended June 30, 2023
ATTACHMENT #1

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CITY OF INDIAN WELLS, CALIFORNIA

Annual Comprehensive Financial Report

Fiscal Year Ended June 30, 2023

Prepared by the Finance Department

Kevin McCarthy, Finance Director
Ruby Walla, Assistant Finance Director
Amy Dallosta, Accountant
Daisy Amezcua, Accounting Technician II
Joanna Rojas, Accounting Technician I
Camille Montemayor, Accounting Technician I

44-950 Eldorado Drive, Indian Wells, California 92210-7497 Telephone: 760-346-2489 – Fax: 760-346-0407

www.cityofindianwells.org

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City of Indian Wells, California
Table of Contents
June 30, 2023

INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................................ i Certificate of Achievement for Excellence in Financial Reporting (GFOA) .......................................................... xiii Organizational Chart ……………………………………………………………………………………………………………………………………..xiv List of Principal Officers ........................................................................................................................................ xv

FINANCIAL SECTION
Independent Auditor’s Report ...................................................................................................................................1 Management's Discussion and Analysis ……………………………………………………………………………………………………………….4 Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ................................................................................................................................... 26 Statement of Activities ........................................................................................................................................ 27 Fund Financial Statements
Balance Sheet - Governmental Funds ................................................................................................................. 28 Reconciliation of the Statement of Net Position - Governmental Funds ............................................................ 29 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ......................... 30 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Funds.……………………………………………………………………………………….........31 Statement of Net Position - Proprietary Funds ................................................................................................... 32 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds .............................. 33 Statement of Cash Flows - Proprietary Funds.................................................................................................. .. 34 Statement of Fiduciary Net Position - Fiduciary Funds.……………………………………………………………………………….....36 Statement of Changes in Fiduciary Net Position - Fiduciary Funds ..................................................................... 37 Notes to Financial Statements ............................................................................................................................ 38 Required Supplementary Information
Schedule of the City’s Proportionate Share of the Net Pension Liability - Miscellaneous Plan .......................... 86 Schedule of Plan Contributions - Miscellaneous Plan..........................................................................................87 Schedule of Changes in the Net OPEB Liability and Related Ratios .................................................................... 88 Schedule of OPEB Contributions ......................................................................................................................... 89 Budgetary Comparison Schedules
General Fund ....................................................................................................................................................... 90 Housing Authority Special Revenue Fund ........................................................................................................... 91 Emergency Services Upgrade Special Revenue Fund .......................................................................................... 92 Notes to Required Supplementary Information .................................................................................................. 93 Combining and Individual Fund Statements and Schedules
Combining Balance Sheet - Nonmajor Governmental Funds .............................................................................. 99 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ....................................................................................................................... 102

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City of Indian Wells, California
Table of Contents
June 30, 2023

Budgetary Comparison Schedules - Special Revenue Funds
Traffic Safety ...................................................................................................................................................... 105 Public Safety 1/2% Tax ...................................................................................................................................... 106 Measure A Transportation ................................................................................................................................ 107 Fire Access Maintenance District No. 1 ............................................................................................................. 108 South Coast AQMD Vehicle Registration ........................................................................................................... 109 Citizens Option for Public Safety Program ........................................................................................................ 110 Gas Tax .............................................................................................................................................................. 111 AB 939 Recycling ............................................................................................................................................... 112 Solid Waste ........................................................................................................................................................ 113 Consolidating LLMD ........................................................................................................................................... 114 Street Lighting District 2001-1 ........................................................................................................................... 115 Affordable Housing Operations ......................................................................................................................... 116 Budgetary Comparison Schedules - Capital Projects Funds Capital Improvements ....................................................................................................................................... 117 City Streets Capital Reserve ............................................................................................................................... 118 Highway 111 Circulation Improvement ............................................................................................................. 119 Park Facilities Fees ............................................................................................................................................. 120 Transportation Facilities Fees ............................................................................................................................ 121 Recreation Facilities Fees .................................................................................................................................. 122 City Wide Public Improvements ........................................................................................................................ 123 Art in Public Places ............................................................................................................................................ 124 Bridges Capital Reserve ..................................................................................................................................... 125 Buildings Capital Reserve .................................................................................................................................. 126 Medians & Parkways Capital Reserve ............................................................................................................... 127 Storm Drains Capital Reserve ............................................................................................................................ 128 Traffic Signals Capital Reserve ........................................................................................................................... 129 Technology Capital Reserve .............................................................................................................................. 130 City Vehicles Capital Reserve ............................................................................................................................. 131 Disaster Recovery Reserve ................................................................................................................................ 132 Park Facilities in Lieu ......................................................................................................................................... 133

Internal Service Funds
Combining Statement of Net Position - Internal Service Funds ........................................................................ 135 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds ............. 136 Combining Statement of Cash Flows - Internal Service Funds .......................................................................... 137 Statistical Section
Net Position by Component .............................................................................................................................. 140 Changes in Net Position ..................................................................................................................................... 141 Fund Balances of Governmental Funds ............................................................................................................. 143 Changes in Fund Balances of Governmental Funds .......................................................................................... 144 Tax Revenues by Source - Governmental Funds................................................................................................146 Assessed Value and Estimated Actual Value of Taxable Property.....................................................................147

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City of Indian Wells, California
Table of Contents
June 30, 2023

Assessed Value of Property by Use Code, Citywide............................................................................................148 Direct and Overlapping Property Tax Rates........................................................................................................149 Principal Property Tax Payers.............................................................................................................................150 Principal Sales Tax Producers.............................................................................................................................151 Property Tax Levies and Collections...................................................................................................................152 Transient Occupancy Tax Collections.................................................................................................................153 Ratios of Outstanding Debt by Type...................................................................................................................154 Ratios of General Bonded Debt Outstanding and Legal Debt Margin.................................................................155 Direct and Overlapping Debt..............................................................................................................................156 Pledged-Revenue Coverage...............................................................................................................................157 Demographic and Economic Statistics...............................................................................................................158 Principal Employers............................................................................................................................................159 Full-Time Equivalent City Government Employees by Function.........................................................................160 Operating Indicators by Function.......................................................................................................................161 Capital Assets Statistics by Function...................................................................................................................162

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November 15, 2023

Honorable Mayor, Members of the City Council, and
Residents of the City of Indian Wells, California:

We are delighted to present the Annual Financial
Report for the City of Indian Wells, covering the fiscal year that concluded on June 30, 2023. The City's
unwavering commitment remains focused on enhancing
the quality of life within the boundaries of Indian
Wells. City officials have diligently cultivated open and amicable lines of communication with all residents to
adeptly respond to the evolving needs of this
distinguished and exceptional community.

Indian Wells continues to bask in the privileges
associated with its status as one of California's most affluent and prudently managed municipalities. The vigilant oversight exercised by the City's Finance Committee guarantees the perpetuation of this esteemed financial standing and prudent fiscal practices. The City's financial robustness is inherently attributed to the Council's unwavering emphasis on conservative fiscal stewardship of its resources and the harmonious collaboration between the City Council and its management team. This synergy, in tandem with a thriving local tourism sector anchored by the City's opulent resort hotels, world-renowned tennis facility, and Golf Resort, collectively sustains the City's robust financial well-being.

Tourism serves as the paramount catalyst for the City's revenue streams, significantly influencing categories such as transient occupancy tax, admissions tax, and sales tax. Notably, tourism and Golf Resort revenues for the fiscal year surpassed expectations, with historic collections achieved in both transient occupancy tax and admissions tax categories.

It is important to note that the City's fiscal prosperity in one year does not invariably guarantee economic success in the subsequent year. Considering persisting concerns related to the ongoing pandemic, the plausible release of pent-up demand, escalating fuel prices, potential effects of quantitative easing, and the City's long-term economic outlook, Indian Wells maintains a stance of "optimistic caution" and has judiciously adopted a fiscally conservative approach for the upcoming year's expenditures.

City services, particularly those related to public safety, are subject to constant scrutiny and enhancement to ensure their alignment with the needs of our residents, all while upholding the highest standard of fiscal responsibility. The City diligently adheres to the time-honored tradition of reserving an annual amount exceeding $2.0 million for long-term capital replacements. Additionally, it prudently manages pension and other post-employment benefits by fully funding its retirement obligations.

This transmittal letter provides a non -technical summary of the City’s finances, services, achievements, and economic prospects. A narrative introduction and analysis of the Financial Statements are found in the

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ii
Management's Discussion and Analysis (MD&A), which immediately follows the independent auditor's report. The MD&A complements this letter of transmittal and should be read in conjunction with it. The notes and the other financial and operational data included in the Financial Statements provide a complete analysis of the City’s financial position as of June 30, 2023.

The Financial Statements are prepared in accordance with generally accepted accounting principles in the United States of America. The accuracy of the data, the completeness and fairness of the presentation, and the adequacy of its disclosures rest with the City's management. This includes the design, implementation, and maintenance of internal controls over the preparation and fair presentation of Financial Statements, which are free from material misstatement and for assurance that the assets of the City are protected from loss, theft, or misuse. Because the cost of internal controls should not exceed the anticipated benefits, the objective is to provide reasonable rather than an absolute assurance that the Financial Statements are free from any material misstatements. We believe the information presented is complete and reliable in all material respects.

Government Code 26909 (a) requires the City, as a local agency of the County, to contract with a certified public accountant to perform an annual audit of the accounts and records of the City, and the audit conforms to Generally Accepted Auditing Standards. Further, Government Code 26909 (b) states that an audit report shall be filed with the State Controller and the County Auditor in which the district is located within 12 months of the end of the fiscal year. Therefore, this report is published to fulfill these requirements for the fiscal year ending June 30, 2023.

Farr Davis, Certified Public Accountant, issued an unmodified opinion on the City of Indian Wells Financial Statements for the fiscal year ended June 30, 2023. The independent auditor’s report is located in the financial section of this report. The independent audit involved examining evidence supporting the amounts and disclosures in the financial statements , assessing management's accounting principles and estimates, and evaluating the overall financial statement presentation.

In addition to the annual audit, Farr Davis performs various Agreed Upon Procedures (AUPs) reviews at the Indian Wells Golf Resort, the Housing Authority communities, the Tennis Stadium, and Indian Wells hotel partners.

Profile of the City of Indian Wells

The City of Indian Wells, which achieved incorporation in the year 1967, is situated within the state of California,
approximately 120 miles to the east of Los Angeles, nestled in the eastern expanse of Riverside County, renowned as the Coachella Valley.

Distinguished by its immaculate natural surroundings, exclusive residential country clubs, world-class resorts, championship- caliber golf courses, and a profusion of recreational and cultural pursuits, the Indian Wells community stands apart. The city is home to 4,774 permanent residents, occupying an area covering

15.04 square miles, with an additional 4,000 to 5,000 seasonal residents who make Indian Wells their abode during the winter months.

Indian Wells adheres to a City Council/City Manager system of governance. The authority for policy formulation and legislative

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iii
decisions is vested in a governing council, known as the Council, comprised of the Mayor and four other members, all elected in a non-partisan manner. These Council members serve four-year terms and are elected on a citywide basis. Moreover, the City Council holds the prerogative to appoint the City Manager and Attorney.

The City Manager is the chief executive of the municipal government, tasked with executing policies as directed and established by the City Council and overseeing the administrative and operational functions utilizing the municipal workforce. The City provides a comprehensive array of services, encompassing aspects such as law enforcement, fire protection, infrastructure development and maintenance, economic advancement, urban planning, community development, building code enforcement, promotion of arts and culture, and the facilitation of recreational activities.

The bedrock of the City's fiscal planning and control mechanisms is founded upon the biennial budget and the City's five-year Capital Improvement Program. The City Council is mandated to adopt the biennial budget resolution by July 1. The budget is presented in a manner consistent with generally accepted accounting principles. Notably, the City's budget format has undergone a transformation, with an emphasis on program budgeting as opposed to the conventional departmental structure. This novel format streamlines the reporting of City expenditures and the allocation of resources in alignment with the City's overarching objectives. Program budgets underscore the goals of the City while apportioning expenses accordingly.

Outstanding Community Benefits

The City of Indian Wells epitomizes an
exceptional quality of life, marked by a rich
tapestry of cultural and social offerings, a
forward-thinking and unified municipal
administration, opulent hotel establishments,
and the presence of the esteemed Indian Wells
Golf Resort, renowned for its championship
golf facilities.

Furthermore, the city plays host to a myriad of
significant sporting and cultural events. These
noteworthy occasions include the BNP
Paribas Open, recognized as the largest two-week event worldwide, encompassing the Association of Tennis Professionals (ATP) World Tour and the Women's Tennis Association (WTA), conducted at the prestigious Indian Wells Tennis Garden. In addition, the city embraces the Coachella Valley Firebirds, a professional ice hockey expansion team, Ironman 70.3, Desert Town Hall, Winterfest, and the Indian Wells Arts Festival. Adding to the area's cultural vibrancy, the Living Desert Zoo is conveniently situated within Indian Wells and its neighboring city, Palm Desert.

Indian Wells proudly maintains one of the most favorable crime rates and expeditious public safety response times in the Coachella Valley, a testament to the vigilant efforts of its law enforcement and fire/paramedic services. The Joslyn Center caters to an array of activities designed to cater to diverse interests and energy levels.

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iv
Furthermore, Indian Wells showcases a thriving resident benefit program. Possession of an Indian Wells Resident Benefit Card affords residents exclusive discounts at the Indian Wells Golf Resort, Indian Wells Tennis Garden, the Acrisure Arena, and all four distinguished Indian Wells hotel properties. The City additionally hosts art exhibitions and lectures and offers complimentary access to events such as the BNP Paribas Open and Desert Town Hall, complemented by resident social gatherings, patriotic community celebrations, and diverse, engaging activities.

Financial Communication

Financial communication with residents and
other stakeholders is a fundamental Council
Goal and top priority. Throughout the year,
the Council utilizes the following methods
to keep residents fiscally informed:

1. Council meetings and study
sessions to encourage public
engagement.

2. Presentation of the financial
Forecast during the Council's
annual Strategic Planning sessions
to encourage public engagement.

3. Finance Committee Meetings.

4. Presentation of the annual financial statements.

5. The City’s website.

6. The Mayor’s letter.

7. Fiscal update eblasts.

8. The Financial Primer mailer was sent to all residents.

9. The Capital Improvements overview mailer was sent to all residents.

10. Indian Wells Check Book on the City’s website.

11. The Budget at a Glance mailer was sent to all residents.

12. Resident meetings with the City’s Finance Director.

13. Coffee with the City Manager.

Factors Affecting Financial Condition

Facing rising inflation, the Federal Reserve, tasked with maintaining stable price growth, has repeatedly enacted interest rate increases throughout 2022 to cool the economy and, in turn, slow inflation. The longer inflation persists, the higher the Federal Reserve will increase interest rates in response. The chance that the Federal Reserve can tame inflation without inducing a recession is narrow, especially with an inverted yield curve.

A yield curve inversion, when rates for two-year U.S. Treasury notes rise above those for 10-year notes, has preceded every recession since the 1960s. The first apparent inversion in 15 years happened in July 2022, although there were brief and shallow inversions in August 2019 and April 2022.

All of that is old news. What has happened since July is that the inversion, unlike all others since the early 1980s, has become more profound. The two-year yield is now almost 80 basis points, or 0.8 percentage points, higher than the 10-year yield. This inversion was only exceeded by 1978 to 1982 when the Federal Reserve chairman Paul Volcker ramped up benchmark rates to double digits to reverse high inflation at

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v
the cost of two long and deep recessions. Investors are asking whether the next recession will be more prolonged and profound than the previous 40 years.

Despite recent interest rate increases, inflation remains well above the Federal Reserve’s stated stability goal. Further, factors that tend to predict future inflation—such as recent changes in consumer spending, incomes, and prices for food and energy—suggest that heightened inflation pressures could remain for some time. These observations indicate that the Federal Reserve will take additional steps to curb inflation in the coming months, raising the risk of a recession.

Before predicting disaster, remember that the current inversion is only 77 basis points, compared with the 241-basis-point peak in 1978-1980 and 170 basis points in 1980-1982. Additionally, federal rate increases of 124 basis points are well below the 194 basis points of 1978-1980, and the stock market decline of 14% is not as severe as the 18% of 1980-1982. So, while the signs are ominous, they’re not yet at a level to expect Volcker Shock conditions.

A recession seems likely, but how disruptive it will be to Indian Wells isn't clear. Hotel revenues and occupancy are near record highs, and there is a clear indication that the March 2023 tennis tournament will return to pre-pandemic levels. Moreover, long-term forecasts provided by hotel partners anticipate continued growth through 2023. However, this could all change instantly if the national economy falls into a significant recession.

Why does Indian Wells care about the national economy? Tourism! During the fiscal year 2022, tourism revenues (transient occupancy tax, admissions tax, and a portion of sales tax) accounted for approximately 70% of all General Fund revenues.

Tourism significantly impacts the Leisure and Hospitality industries of the Coachella Valley; when the economy is in a recession, people travel less. While international tourism has yet to return to pre- pandemic levels in Southern California and the Coachella Valley, much of it has been compensated by Southern Californians traveling to the area even during hot months. Falling into a new recession will cut tourism from the rest of the U.S. and California.

Some early tourism reports indicate that economic concerns have replaced health as the main apprehension for summer and fall travel. Of course, financial concerns will cause some to stay home, but those who plan to travel are prepared to increase their budgets. Nearly three in 10 travelers plan to spend more than they did in 2019, and high airfares and hotel room rates are the number one reason why.

Strategic Goals and Priorities

Good financial planning helps the City maximize cash flow and allocate financial resources consistent with the City's strategic planning goals. Therefore, the plan requires periodic updates to ensure the City's financial strategy remains current and reflects the priorities of the citizenry.

This Financial Strategy aims to provide a clear picture of the City's current financial position and long-term financial strategy to achieve strategic planning goals. Goals are incorporated into the budget as the City's strategic planning process unfolds.

A budget is more than a spending plan. It is a statement of priorities, a roadmap for the coming year, and a melding of ideas, thoughts,

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perspectives, and opinions balanced against fiscal realities and constraints. This budget reflects the collaboration between the community, the Council, and staff members.

The biennial budget implements the Council's priorities and strategic goals. It provides a financial plan that continues delivering first-rate services and is responsive to the community's needs. The budget reaffirms the City’s commitment to maintain high service levels, increase investments in organizational efficiency, and maintain community infrastructure at a level of service expected by the community.

Strategic planning determines where an organization is going over the next year and beyond, how it will get there, and how it will know if it got there. This is the City’s “Game Plan." The focus of a strategic plan is to outline the goals of the City Council for the entire community/organization over some time (one, three, or five years are typical). Goals-based planning starts with focusing on the organization's vision and values, selecting projects and programs to meet and achieve the goals, analyzing the resources needed and available resources, and finally, who will do what and by when.

Below is a summary of the City Council's Goals for the upcoming budget cycle:

Fiscal Policies

Continue the Council Policy of reserving $2.0 million annually for long-term capital replacements.

Continue the Council Policy of maintaining a fully funded pension program. Educate the Council on the merits of the Public Safety and Capital Community Facilities District and bring them back for further discussion. Develop a plan to expand the pension program to pre-fund future pension obligations.

Examine a new revenue measure designed to diversify revenue streams and provide a dedicated funding source to address future funding needs of the City (e.g., public safety cost increases). Provide direction on the best use of one-time loan funds paid to the City by the former RDA.

Capital Improvement Program Update

Council-recommended goals for 2023 include developing a new five-year CIP for the upcoming budget cycle. Continue investing in the street maintenance program to achieve a City average Pavement Condition Index of 80 points or higher. Maintain and add healthy, vibrant, and water-conscious landscaping citywide. Perform annual sidewalk repairs to remove tripping hazards.

Provide Responsive, Innovative, and Efficient Public Safety

The City continues to emphasize public safety as a significant priority, addressing matters in real-time as well as at Coffee with a Cop event(s), quarterly Public Safety Committee meetings, quarterly updates to the City Council, and during the annual State of the City event. In addition, through contract services with the Riverside County Sheriff’s and Fire Departments, the City maintains a safe and low-crime environment for residents and visitors.

Tourism Update and Opportunities

In collaboration with Visit Greater Palm Springs, the Tourism program strategically supports the resort partners to influence Transient Occupancy Tax (TOT) growth. In addition, the programs developed create demand for the product of Indian Wells by building brand awareness and strategically leveraging Indian Wells to develop and execute marketing strategies to influence both group and leisure markets.

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Evaluating Energy Efficiency Opportunities

Energy costs are significant in the City and Golf Resort’s operating budgets. Over the years, the City has made upgrades to City facilities to become more energy efficient. In May 2021, the City approved an $8.9 million energy efficiency program to install solar at the City Hall and the Golf Resort, replace inefficient heating and cooling systems, install efficient lighting, electric car chargers, backup generators, and a battery backup system at the Golf Resort.

General Plan Update

Complete the General Plan update. State law requires every city and county in California to adopt regular updates to their General Plan. A General Plan is often compared to a "constitution" for local development.

It serves as the long-range policy and planning document for all city land use decisions and resource management. The City’s existing General Plan has effectively guided the community's growth and direction since its adoption in February 1996.

According to City staff, the primary vision embodied in the General Plan continues, for the most part, to reflect community goals and values, promoting an excellent quality of life for our residents, business owners, and visitors. However, the City wishes to update the General Plan for various reasons, including compliance with new state housing laws, establishing new goals and policies for future development, and expanding economic development opportunities within the City. Consequently, the General Plan Update shall be focused on the following goals:

• Establish goals and policies directing growth, circulation, and development of the vacant properties in the northeast section of the City consistent with the City’s desire for a mix of hospitality, entertainment, residential, and commercial land uses. • Incorporate goals and policies within the land use and housing elements to incentivize affordable housing and identify possible mixed-use and accessory dwelling unit (ADUs) opportunities to help meet those requirements.
• Establish form-based development standards to ensure that new development is at a scale and intensity that does not overburden public services or utilities and protect views from established residential neighborhoods.
• Improve the City’s circulation plan by identifying safe alternative transportation and bikeway opportunities.
• Identify goals and policies for the future development of 5G wireless facilities and infrastructure. • Update the Highway 111 Specific Plan to establish consistent standards for building setbacks, landscaping, monument signage, lighting/bollards, and opportunities for art in public places. • Identify wayfinding and branding opportunities for the Indian Wells Resort Campus, Tennis Garden, and City Hall.

Community Events and Activities

The Indian Wells Community Activities Committee serves as an advisory body responsible for formulating recommendations to promote and cultivate community engagement among the city's residents, which it duly conveys to the City Council. Within the committee's purview lies the task of formulating an annual calendar encompassing a comprehensive array of community activities and, in turn, overseeing the meticulous planning and execution of these activities. The Committee is constituted of five members and operates under the aegis of the City Managers Department. Noteworthy initiatives that align with the directives of the City Council also fall within the Committee's sphere of responsibility, including endeavors such as Sister City relations and the administration of Resident Benefits.

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Develop Landscape Uniformity Along Highway 111

The landscaping along Highway 111 is an iconic characteristic of the City and requires high-quality maintenance to preserve the City’s standards. Unfortunately, at times, the maintenance along Highway 111 is inconsistent due to a lack of attention, limited funding, the timing of maintenance, and different standards of care between the City, the five Landscape and Lighting Maintenance Districts (LLMDs) managed HOAs and commercial property owners.

Council and staff have expressed interest in developing uniform standards for landscaping materials used and consistency of maintenance efforts. The General Plan update will assist in this process. In addition, the staff is to discuss partnerships with HOAs along Highway 111 to discuss options for more consistent landscaping in HOA-owned areas.

Encourage and Expand Economic Development Opportunities in the Community

Economic Development opportunities in Indian Wells remain strong. Therefore, in 2020, the City Council formed an Economic Development Division of the City Manager’s Office focused on shaping the city’s future through relationship building, research, and development advocacy. These efforts were categorized into three areas: Monitoring Current and Future Development, evaluating an Enhanced Infrastructure Financing District (EIFD), and Business Assistance and Relationship Building.

Update Communications Plan

The residents of Indian Wells are notably engaged and exhibit a keen interest in the affairs of their community. On an annual basis, the City fosters communication with its residents through a multifaceted approach, encompassing email notifications, newsletters, postings on social media platforms, targeted mailings, the official city website, and cable access channels. Recognizing the evolving landscape of communication and the growing demand for enhanced engagement, the City Council has expressed a strong desire to revisit and revitalize the City's Communication Policy, last amended in 2018, with a view toward expanding and enriching the range of communication programs at its disposal.

Expand Partnership with the Indian Wells Preservation Foundation

For the last several months, the Indian Wells Historic Preservation Foundation (IWHPF) has been cataloging all items documenting the history of Indian Wells. The relationship between the City and IWHPF has never been better. The City is looking to further expand its relationship with the IWHPF in 2023 to help educate the community on the history of Indian Wells and support the IWHPF’s efforts to become more involved with its community.

Review of City Administrative Processes and Municipal Code Update

The City routinely reviews its administrative processes and recommends Municipal Code updates.

Regular review and updates are essential to policy and procedure best practices.

Housing Authority Goals

The City’s Housing Authority holds title on two age-restricted affordable housing properties totaling 218 rental units. Indian Wells Villas consist of 90 one-bedroom units, built in 1996 with affordability covenants set to expire in 2031. Mountain View Villas consists of 97 one-bedroom and 31 two-bedroom units with affordability covenants recorded expiring in 2036.

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The Housing Authority also currently owns a 10.8-acre vacant site along HWY 111, just west of Mountain View Villas and south of the Whitewater River Channel, but is waiting on partnering with Abode Communities to develop that site with affordable housing after the design of the channel lining project is complete in CVWD’s adjacent stormwater channel. In addition, the City has initiated the acquisition of the vacant 34-acre housing opportunity site on the northeast corner of Miles and Warner Trail. Still, there is no current timetable for completing that acquisition.

Accomplishments

City Finances
• Added new sections to the Budget document, improving transparency. • Negotiated extension of agreements with Tennis Garden due to COVID-19. • Negotiated shared design expenses with Brixton on Channel lining design, saving the City tens of thousands of dollars.
• Updated User Fee Schedule.

Economic Development
• Created a new Economic Development Division of the City to focus efforts on promoting existing businesses and new investments in Indian Wells.
• Improved relationship with IW Chamber and other chambers. • Moving forward with the EIFD study.
• General Plan Update to include significant incentives for Economic Development.

Golf Resort
• Financial Reporting - Redesigned financial reporting of IWGR operations, improving transparency and financial analysis.
• Implementation of Council Performance Goals and Deliverables.

Public Safety
• Promoted positive changes in Sheriff patrols, Ring Partnership, community outreach, and increased traffic enforcement.
• Changed the fire staffing model to provide a paramedic on every shift of the fire engine.

Housing Items
• Attempted a partnership with CSUSB-Palm Desert on developing student housing for the university and earned RHNA credit for the City.
• Completed Short Term Rental Ordinance update.

City Internal Operations
• Added some fun activities for staff (i.e., Ice Cream Social, baseball and football jersey days). • Ride-a-longs with Cal Fire and Sheriff’s Department.

Stakeholder Meetings and Community Outreach
• Visited both Affordable Housing Projects and met with residents. • Met with developers to seek their investment in the City (i.e., Lewis, Majestic, Lennar, etc.). • Meet regularly with General Managers at local resorts. • Established relationships with local HOAs.
• Presented at Rotary Club.
• Spend a significant amount of time meeting with other stakeholders in the community.

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Communication
• Improved communication with the City Council.
• Worked with staff to improve communication with staff reports, email blasts, etc. • Revised legislative platform.

Document Structure

In addition to the fund-by-fund financial information presented in the City’s financial statements, the Government-wide Financial Statements are presented. The Government-wide Financial Statements include a Statement of Net Position providing the City’s total net position, including infrastructure, and a Statement of Activities displaying the cost of delivering government services.

These statements are further analyzed in the Management’s Discussion and Analysis (MD&A) narrative section. The MD&A provides "financial highlights" and interprets the financial reports by analyzing trends and explaining changes, fluctuations, and variances in the economic data. In addition, the MD&A is intended to disclose any known noteworthy events or decisions affecting the City's financial condition.

The Annual Financial Report includes the financial activity for all funds of the City. The City provides various services, including planning, building, public works, engineering, maintenance, and general administrative activities. Contracted services include police and fire protection and landscape maintenance.

The following governmental agencies provide services to the City of Indian Wells citizens. They are excluded from this report because the City does not have financial accountability over these agencies: the State of California and its departments, the County of Riverside and its departments, Cove Communities Services Commission, Coachella Valley Association of Governments, Riverside County Transportation Commission, Riverside County Waste Management District, Desert Sands Unified School District, County Superintendent of Schools, Coachella Valley Unified School District, Desert Community College District, Coachella Valley Mosquito, and Vector Control District, Coachella Valley Water District, Sunline Transit Agency, Greater Palm Springs Convention and Visitors Bureau, and the Desert Resorts Regional Airport Authority.

Established Financial Controls

The internal controls framework is designed to provide reasonable but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management.

Independent Audit

An annual independent audit of the City’s Financial Statements was conducted. The accounting firm of Farr Davis was appointed by the City Council and reported to the Finance Committee to perform the annual audit. The auditors' report on the basic financial statements, as well as the combining and individual fund statements and schedules, is included in the financial section of this report.

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Annual Internal Control Review

The City is responsible for ensuring an adequate internal control structure. Accordingly, the internal control structure is subject to constant evaluation by the management of the City and annual review by independent auditors. Assessments determine the internal control structure's adequacy and whether the City complied with applicable laws and regulations. The results of the City’s annual audit for the fiscal year that ended June 30, 2023, provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations.

Accounting Controls

In the public sector, a city government maintains a variety of "funds," which provide the basis for separately recording the financial data related to a specific activity. A fund is an accounting entity with complete self-balancing accounting records. Each fund is established due to some restriction on the use of the resources received by the fund. For example, in the private sector, a corporation may have many subsidiaries that comprise the parent corporation. Likewise, in the public sector, all the funds make up the complete financial resources of the City. This report includes the transactions of all entities over which the City Council has authority (as defined by the Governmental Accounting Standards Board).

The City's accounting system operates on a modified accrual basis of accounting for all governmental and agency-type funds. Under the modified accrual basis of accounting, revenues are recorded when received in cash or accrued when they are both measurable and collectible within the accounting period or soon enough after the end of the period to pay liabilities of the period. Expenditures other than interest or long- term debt are recorded when liabilities are incurred. At year-end, the City prepared the required entries necessary to report the City’s financial position and activities on an accrual basis of accounting, which recognizes revenues when earned and expenses when incurred.

In addition to maintaining funds to record accounting transactions, internal controls exist within the accounting system to ensure the safety of assets from misappropriation, unauthorized use, or disposition and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with sound management practices based upon the cost/benefit of the controls imposed. The control cost should not be high for its derived use as viewed by City management. The internal controls at the City of Indian Wells are sufficient to ensure, in all material respects, the safety of the City's assets and the accuracy of the financial record-keeping system.

Certificate of Award for Outstanding Financial Reporting

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Indian Wells for its Annual Comprehensive Financial Report for the fiscal year ending June 30, 2022. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparing state and local government financial reports.

To be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized financial report whose contents conform to program standards. In addition, such financial statements must satisfy Generally Accepted Accounting Principles and applicable legal requirements.

The Annual Comprehensive Financial Report of the City of Indian Wells for the fiscal year ending June 30, 2023, is now presented. To our knowledge and belief, the enclosed information is accurate in all

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material respects. It is reported in a manner designed to show the City's financial position fairly. All disclosures necessary to understand the City's financial activities are included.

Acknowledgments

The preparation of this report was made feasible through the unwavering commitment and exemplary professionalism exhibited by the members of the Finance Department. Gratitude is extended to all City departments for their invaluable contributions to the aforementioned report. Furthermore, I express my profound appreciation to the City's independent auditors, Farr Davis, Certified Public Accountants, for their dedicated efforts and exemplary professionalism in the annual audit. Lastly, my heartfelt thanks are extended to the esteemed members of the City Council and the Finance Committee for their provision of resources and diligent safeguarding of the City's internal controls framework.

Respectfully submitted,

___________________
Chris Freeland
City Manager

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CITY OF INDIAN WELLS

LIST OF PRINCIPAL OFFICIALS

JUNE 30, 2023

Council – Manager Form of Government

City Council

Donna Griffith
Mayor

Greg Sanders
Mayor Pro Tem

Ty Peabody
Council Member

Bruce Whitman
Council Member

Dana Reed
Council Member

City Administration

Christopher J. Freeland
City Manager

Kevin McCarthy, Finance Director
Peter Castro, Deputy City Manager
Ken Seumalo, Public Works Director
Jon Berg, Community Development Director

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Independent Auditor’s Report

The Honorable Mayor and Members of City Council
City of Indian Wells, California

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Indian Wells (the “City”), as of and for the year June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Indian Wells, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free fro m material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year after the date that the financial statements are issued.

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Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting fro m fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, and Budgetary Comparison Schedules for the General Fund and each major special revenue fund , Schedule of Proportionate Share of the Net Pension Liability, Schedule of Plan Contributions, Schedule of Changes in the Net OPEB Liability and Related Ratios and Schedule of OPEB Contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements i n an appropriate operational, economic, or historical context.

We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the inf ormation and comparing the information for consistency with management’s responses to our inquiries, the 2

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basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient eviden ce to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America . In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the Introductory Section and Statistical Section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated November 15, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opi nion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Irvine, California
November 15, 2023
3

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Management’s Discussion and Analysis

As the management of the City of Indian Wells, we offer readers of the financial statements this narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2023.

Management’s Discussion and Analysis provide readers with a basic overview of the financial results and financial position of the City of Indian Wells. We encourage readers to consider the information presented here in conjunction with additional information furnished in the letter of transmittal found on page i and the accompanying basic financial statements found on pages 26-27 of the report.

Financial Highlights

• The assets and deferred outflows of resources of the City of Indian Wells exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $291,819,056 (net position). The unrestricted net position, representing the amounts available to meet the City’s ongoing obligations to citizens and creditors, was $67,107,966, about 23.0% of the total net position.

The City’s investment in capital assets is $192,521,650, and $32,189,440 is subject to legal restrictions on their use.

• The City of Indian Wells's total net position decreased by $7,077,156 primarily due to the reduction of pension assets.

• At the close of the current fiscal year, the City of Indian Wells governmental funds reported combined fund balances of $103,383,445, a decrease of $4,758,164 compared with the prior year. Of this amount, $19,522,041, or 18.9%, is available for spending at the government’s discretion (unassigned fund balance). Of the remaining amount, $494,155, or 0.5%, of the governmental fund balances are committed for capital projects; $16,011,720, or 15.5%, constitutes non-spendable reserves; $35,405,755, or 34.2%, are restricted fund balances because of external limitations on spending. Assigned fund balances total $31,949,774, or 30.9%, are reserved for long-term capital projects and are internally imposed restrictions placed upon the funds by the Governing Board.

• At the end of the most recent fiscal year, the fund balance in the City’s General Fund was $36,648,058. The fund balance breaks down as follows: non-spendable assets comprise $15,367,495 in notes and loans, and $21,280,563 is unassigned.

• Governmental Activities capital assets net of depreciation increased by $2,881,027 from $149,121,104 to $152,002,131. The City acquired $7,580,754 in new capital assets, and construction is in progress during the fiscal year. Deletions totaled $719,209, and the depreciation expense reached $3,980,518.

• The City reported a net pension liability (asset) for its proportionate share of the net pension liability of the Miscellaneous Plan as of June 30, 2023, in the amount of ($700,736). The City’s net pension liability for the Miscellaneous Plan is measured as a proportionate share of the net pension liability.

• The City has established a Retiree Healthcare Plan (HC Plan) and participates in an agent multiple employers defined benefit retiree healthcare plan administered by the CalPERS, which acts as a typical investment and administrative agent for its participating member employers. City contracts with the employee associations establish benefit provisions under the HC Plan. In addition, the City participates in the California Employers’ Retiree Benefits Trust Fund (CERBT). The City reported a net liability (asset) of ($745,061) as of June 30, 2023.

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• The City reported $634,307 in compensated absences liability as of June 30, 2023. The City reserves the outstanding compensated absences liability in the Employee Leave Accrual Fund.

• As a result of this year’s business activities, the Indian Wells Golf Resort collected $21,233,367 in operating revenues. Revenues from operations include golf fees, food & beverage receipts, and event sales. Operating expenses at the Indian Wells Golf Resort totaled $21,528,644. This total comprises operations, general and administrative costs, and depreciation. Operations totaled $18,230,460, general and administrative expenses totaled $668,571, and depreciation totaled $2,629,613. Nonoperating revenues (expenses) totaled ($425,921) and were broken down as follows: investment income loss ($9,708) due to a GASB 31 adjustment, interest expense ($25,416), loss on disposition of capital assets ($416,797), and other nonoperating revenue totaling $26,000.

• Capital assets from Business-type Activities net of depreciation decreased by $2,271,192 from $47,199,242 to $44,928,050. In addition, the Indian Wells Golf Resort acquired $899,817 in new capital assets, and construction was in progress during the fiscal year. Deletions totaled $541,396, and the depreciation expense reached $2,629,613.

Overview of the Financial Statements

The discussion and analysis here will introduce the City of Indian Wells’ basic financial statements. The City of Indian Wells’ basic financial statements consist of three components: (1) government‐wide financial statements, (2) fund financial statements, and (3) the notes to financial statements. This report also includes supplementary information to furnish additional detail to support the basic financial statements.

Government‐wide Financial Statements. The government‐wide financial statements are designed to provide readers with a broad overview of the City of Indian Wells’ finances like a private‐sector business.

The statement of net position presents financial information on all of the City of Indian Wells’ assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a valuable indicator of whether the City of Indian Wells’ financial position is improving or deteriorating.

The statement of activities presents information showing how the City of Indian Wells’ net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both Government-wide Financial Statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions intended to recover all or a sizable portion of their costs through user fees (business-type activities). The City’s governmental activities include general government, public safety, highways and streets, sanitation, economic development, and culture and recreation. The Government-wide Financial Statements include the City (the primary government) and a legally separate maintenance district for which the City is financially accountable.

The City of Indian Wells Fire Access Maintenance District No. 1, although legally separate, functions as a department of the City and is therefore included as an integral part of the primary government. The government-wide financial statements are on pages 26-27 of this report.

Fund Financial Statements - A fund is a grouping of related accounts that control resources segregated for specific activities or objectives. The Fund Financial Statements provide information about the City’s most significant 5

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funds (major funds) rather than the City as a whole. Some funds are required by State and Federal law or by bond covenants. Other funds are utilized to control and manage re sources intended for particular purposes. The City of Indian Wells, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds - Governmental funds account for the same functions reported as governmental activities in the Government-wide Financial Statements. However, unlike Government-wide Financial Statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources and balances of spendable resources available at the end of the fiscal year. Such information may help evaluate a government's near-term financing requirements.

Because the focus of governmental funds is narrower than the Government-wide Financial Statements, it is helpful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. The governmental fund balance sheet and the governmental fund statement of revenues, expenses, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenses, and changes in fund balances for the major funds of the government. The City of Indian Wells maintains individual governmental funds , distinguishing between major and non - major funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditure s, and changes in fund balances . Data collected from governmental 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 of Indian Wells chooses to report eighteen (18) Landscape and Lighting District funds as the Consolidated LLMD rather than separately reporting each of the funds. The City also combines five (5) Gas Tax funds as the Consolidated Gas Tax Fund for this reporting purpose.

The City adopts a biennial budget. The Bie nnial Operating Budget and the Capital Improvement Program are prepared and administered in accordance with established procedures set forth by the City Council. These procedures include guidelines, standards, and requirements for the preparation and monitoring of both the Operating and Capital Budgets. The budget is managed to ensure adequate funds are available to cover anticipated expenditures. Public input is considered throughout the process, with scheduled public meetings and study sessions at key Cit y Council decision points. A budgetary comparison schedule is provided for the General Fund to demonstrate co mpliance with this budget.

Proprietary funds - Proprietary funds report the same functions as business-type activities in the Government-wide Financial Statements. Internal service funds accumulate and allocate costs internally among various functions. Proprietary funds provide the same information as the Government-wide Financial Statements, only in more detail.

Fiduciary funds - The City utilizes Fiduciary funds to account for assets held by the City in a trustee capacity or as an agent for other governmental entities, private organizations, or individua ls. The City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in net fiduciary position . We exclude these activities from the City’s Gover nment-Wide Financial Statements because the City cannot use these assets to finance its operations. 6

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Notes to the Financial Statements - The financial statements include the Notes to the Financial Statements , which provide essential narrative details about the information in the financial statements. Data in the Notes to the Financial Statements are critical to a reader's understanding of the Government-Wide and Fund Financial Statements.

Required Supplementary Information - Besides the required elements of the Basic Financial Statements, we included Required Supplementary Information , which provided budgetary information for the General Fund and maj or special revenue funds and required schedules for pension and other post - employment benefits.

Combining and individual fund statements and schedules - Provide combining fund information and budgetary schedules following the required supplementary information.

Government-Wide Overall Financial Analysis

This analysis focuses on the Statement of Net Position (Table 1) and the Statement of Net Activities (Table 2) of the City’s activities. The changes in net position over time may serve as a valuable indicator of a government’s financial position.

Analysis of the Statement of Net Position

The following table lists a condensed Statement of Net Position for the fiscal years ending June 30, 2023, and 2022.
2023 2022 2023 2022 2023 2022
113,877,738$ 124,381,771$ (1,329,126)$ (3,118,980)$ 112,548,612$ 121,262,791$ Capital assets 152,011,131 149,121,104 44,928,050 47,199,242 196,939,181 196,320,346 Total Assets 265,888,869 273,502,875 43,598,924 44,080,262 309,487,793 317,583,137 7,294,736 8,576,696 163,316 224,345 7,458,052 8,801,041 Current Liabilities 5,297,852 5,395,957 1,566,592 1,242,184 6,864,444 6,638,141 15,434,003 15,941,599 330,461 447,855 15,764,464 16,389,454 Total Liabilities 20,731,855 21,337,556 1,897,053 1,690,039 22,628,908 23,027,595 2,453,685 4,387,992 44,196 72,379 2,497,881 4,460,371 Net Position:
147,924,061 145,969,138 44,597,589 46,751,387 192,521,650 192,720,525 Restricted
Community
development 725,787 4,718,908 - - 725,787 4,718,908 Housing 15,429,469 13,016,874 - - 15,429,469 13,016,874 Public safety 6,183,630 7,054,610 - - 6,183,630 7,054,610 Public works 2,345,243 2,317,493 - - 2,345,243 2,317,493 Pension obligations 5,567,799 11,369,223 139,371 338,347 5,707,170 11,707,570 OPEB obligations 1,798,141 2,301,464 - - 1,798,141 2,301,464 Unrestricted 70,023,935 69,606,313 (2,915,969) (4,547,545) 67,107,966 65,058,768 Total Net Position 249,998,065$ 256,354,023$ 41,820,991$ 42,542,189$ 291,819,056$ 298,896,212$ Table 1
Statement of Net Position
Deferred Outflows of
Resources
Current and restricted
assets
Net investment in
capital assets
Deferred Inflows of
Resources
Total Business -Type Activities Governmental Activities Non-current Liabilities

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Current and restricted assets decreased in governmental activities by $8,714,179 from the prior year. Capital assets increased by $618,835 from the previous year. Total liabilities in governmental activities decreased by $398,687 in the prior year, primarily due to the reduction of non-current liabilities.

The City’s assets exceeded liabilities by $291,819,056 at the close of the most recent fiscal year. Of the total net position , the City’s net investment in capital asset s is $192,521,650 , and $67,107,966 represents the unrestricted net position available for meeting the City’s ongoing obligations to citizens and creditors. The City restricted $32,189,440 based on the expected use. These restricted resources can be used only for those purposes specified by their providers, such as grantors, bondholders, or higher levels of government. It is important to note that external parties constrain these resources.

Analysis of the Statement of Activities

Table 2 below lists a condensed Statement of Activities for the fiscal years ending June 30, 2023, and 2022.

2023 2022 2023 2022 2023 2022
Revenues
Program Revenues:

Charges for services 2,218,818$ 2,237,538$ 21,188,761$ 16,202,430$ 23,407,579$ 18,439,968$ 11,256,801 11,435,024 - - 11,256,801 11,435,024 202,766 954,966 - - 202,766 954,966 - -
General Revenues:

Taxes
Property taxes 3,945,967 3,721,408 - - 3,945,967 3,721,408 Transient occupancy
taxes 12,450,662 10,987,345 - - 12,450,662 10,987,345 Sales taxes 1,766,438 1,539,776 - - 1,766,438 1,539,776 Franchise taxes 1,231,605 1,108,065 - - 1,231,605 1,108,065 Business licenses taxes 150,396 128,865 - - 150,396 128,865 Admission taxes 3,939,996 4,859,434 - - 3,939,996 4,859,434 Investment income (loss) 3,137,278 (1,192,487) (9,708) (70,543) 3,127,570 (1,263,030) - 404,376 - - - 404,376 Other 481,138 550,703 26,000 1,247,051 507,138 1,797,754 Total Revenues 40,781,865 36,735,013 21,205,053 17,378,938 61,986,918 54,113,951 Expenses:

General government 15,297,837 2,804,408 - - 15,297,837 2,804,408 Public safety 13,309,494 9,003,835 - - 13,309,494 9,003,835 Community development 6,782,254 5,479,125 - - 6,782,254 5,479,125 Public works 11,245,752 4,719,058 - - 11,245,752 4,719,058 Interest 457,880 463,970 - - 457,880 463,970 Golf resort - - 21,970,857 18,815,101 21,970,857 18,815,101 Total Expenses 47,093,217 22,470,396 21,970,857 18,815,101 69,064,074 41,285,497 (6,311,352) 14,264,617 (765,804) (1,436,163) (7,077,156) 12,828,454 Transfers (44,606) (2,390,072) 44,606 2,390,072 - - (6,355,958) 11,874,545 (721,198) 953,909 (7,077,156) 12,828,454 256,354,023 244,479,478 42,542,189 41,588,280 298,896,212 286,067,758 249,998,065$ 256,354,023 $ 41,820,991 $ 42,542,189 $ 291,819,056 $ 298,896,212 $ Operating contributions
and grants
Capital contributions and
grants
Net Position, Beginning of Year
Net Position, End of Year
Table 2
Statement of Activities
Governmental Activities Business -Type Activities Total Increase (decrease) in net
position before transfers
Increase (decrease) in net
position
Gain on sale of capital
assets

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Revenues:

Governmental Activities

The City collected $40,781,865 during the fiscal year 2022/23 compared to $36,735,013 the previous year.

The increase in revenue is primarily due to the following:

• Strong property tax growth.
• A stronger-than-expected resurgence in the tourism economy. • Reopening of the BNP Paribas tennis tournament.
• Improved investment earnings

Business Type Activities

The Golf Resort collected $21,205,053 during the fiscal year 2022/23 compared to $17,378,938 the previous year. The increase in revenue is primarily due to the following:

• Resurgence in the tourism economy.
• Improvements to food and beverage operations.
• Expanded demand for golf rounds, escalating golf rates, and increased banquet events and weddings.

Expenses:

Governmental Activities

• Expenses for all governmental activities totaled $47,093,217. Operational cost increases were essentially inflationary in nature. The comparative variance between fiscal year 2022/23 and fiscal year 2021/22 was essentially Governmental Accounting Standards Board (GASB) 68 reporting.

Statement 68 requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. Under GASB 68, employers (like Indian Wells) must recognize their specific pension amounts, including Net Pension Liability (NPL), deferred outflows and inflows of resources, and pension expense. During the fiscal year 2021/22, the GASB 68 pension credit was $11,523,076; during the fiscal year 2022/23, the GASB 68 pension adjustment increased Governmental Activities by $6,686,056.

Business Type Activities

• The Golf Resort's operating costs totaled $21,970,857, including operations costs of $18,230,460, general and administrative expenses of $668,571, interest expenses of $25,416, loss on disposition of capital assets of $416,797, and $2,629,613 in depreciation expenses.

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Financial Analysis of Governmental Funds

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 helps assess the City’s financing requirements. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $103,383,445 as follows:

General Fund All Other Funds Total Funds
Nonspendable:

Prepaid costs 111,390$ 663$ 112,053$ Notes and loans 15,256,105 643,562 15,899,667 Restricted for:

Community
development - 16,155,256 16,155,256 Public safety - 6,183,630 6,183,630 Public works - 2,345,243 2,345,243 Debt service - 10,721,626 10,721,626 Committed for:

Capital projects - 494,155 494,155 Assigned To:

Capital projects - 31,949,774 31,949,774 Unassigned: 21,280,563 (1,758,522) 19,522,041 Total Fund
Balances 36,648,058$ 66,735,387 $ 103,383,445 $ Table 3
Fund Balances by Category
Fiscal Year Ending 6/30/2023

Governmental fund balances ended the year, totaling $103,383,445. Of this amount, $16,011,720 constitutes non-spendable reserves; an additional $35,405,755 are restricted fund balances because of external limitations on spending.

Approximately $494,155 of the governmental fund balances are committed to capital projects. Assigned fund balances total $31,949,774 and are reserved for long-term capital projects and replacements. The assigned fund balances are internally imposed limitations placed upon the funds by the Governing Board responsible for adopting the fund budget. The remainder of the fund balance is $19,522,041, representing unassigned fund balances.

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Business-type activities The City intends to charge fees to customers to cover all or most of the cost of certain services it provides. The Indian Wells Golf Resort activities are reported in this category.

Golf Resort
Operations Total
Operating Revenues:

Charges for services 21,233,367$ 21,233,367$
Total Revenues 21,233,367 21,233,367
Operating Expenses:

Operations 18,230,460 18,230,460
General and Administration 668,571 668,571 Depreciation 2,629,613 2,629,613
Total Expenditures 21,528,644 21,528,644
Operating Income (loss) (295,277) (295,277) Non-operating Revenues (Expenses)
Investment Income (loss) (9,708) (9,708) Interest expense (25,416) (25,416)
Loss on disposition of capital assets (416,797) (416,797) Other nonoperating revenue 26,000 26,000 Total nonoperating revenues (expenses) (425,921) (425,921) Changes in Net Position (721,198) (721,198) 42,542,189 42,542,189
Net Position at End of Year 41,820,991 $ 41,820,991 $ Business-Type Activities
Table 4
Net Position, Beginning of the Year
Fiscal Year Ending 6/30/2023

As a result of this year’s business activities, the Indian Wells Golf Resort collected $21,233,367 in operating revenues. Revenues from operations include golf fees, food & beverage receipts, and event sales.

Operating expenses at the Indian Wells Golf Resort totaled $21,528,644. This total includes operations, general and administrative costs, and depreciation. Operations totaled $18,230,460, general and administrative expenses totaled $668,571, and depreciation totaled $2,629,613.

Nonoperating revenues (expenses) totaled ($425,921) and were broken down as follows: investment income loss ($9,708) due to a GASB 31 adjustment, interest expense ($25,416), loss on disposition of capital assets of ($416,797), and other nonoperating revenue totaling $26,000.

Analysis of Individual Funds

The General Fund

The General Fund is the primary operating fund of the City. At the end of the most recent fiscal year, the fund balance in the City’s General Fund was $36,648,058. The fund balance breaks dow n as follows: non- spendable assets comprise $15,367,495 in notes and loans, and $21,280,563 is unassigned.

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To measure the General Fund’s liquidity, comparing unassigned and total fund balances to total general fund expenditures may be helpful. For example, the unassigned fund balance represents 104.4% of total general fund expenditures, while the total fund balance represents 179.7%.

2023 2022 $ Change % Change
Revenues:

Taxes 23,099,286$ 21,992,915$ 1,106,371$ 5.0% Licenses and permits 925,135 917,861 7,274 0.8% Intergovernmental 933,561 2,173,340 (1,239,779) -57.0% Charges for services 558,846 651,014 (92,168) -14.2% Interest income (loss) 101,144 (697,652) 798,796 -114.5% Fines and forfeitures 107,012 47,687 59,325 124.4% Other income 158,635 196,358 (37,723) -19.2% Total Revenues 25,883,619 25,281,523 602,096 2.4% Expenditures:

General government 10,257,611 8,799,054 1,458,557 16.6% Public safety 5,096,149 4,080,884 1,015,265 24.9% Community development 2,051,675 1,622,505 429,170 26.5% Public works 2,985,140 2,795,477 189,663 6.8% Total Expenditures 20,390,575 17,297,920 3,092,655 17.9% Excess (Deficiency) of Revenues
Over (Under) Expenditures 5,493,044 7,983,603 (2,490,559) -31.2% Other Financing Sources (Uses)
Transfer in 18,500 - 18,500 100.0% Transfer out (4,127,789) (5,395,273) 1,267,484 100.0% Total Transfers (4,109,289) (5,395,273) 1,285,984 100.0% Net Change in Fund Balance 1,383,755 $ 2,588,330 $ (1,204,575) $ 46.5% Table 5
General Fund Financial Summary

Tourism is the primary driver of the City's revenues. Tourism and Golf Resort revenues throughout the fiscal year returned better than predicted. Transient occupancy tax and admissions tax revenue reached historic collections during the year. As a result, General Fund revenues increased by 2.4% during the fiscal year 2022/23 compared to the prior year, primarily due to the expansion of tourism.

General Fund expenditures increased by $3,092,655 (17.9%) during the fiscal year 2022/23, primarily due to the increase in public safety services, increased spending for resident amenities, and the implementation of the citywide turf rebate program, which provided incentive funding to homeowners and HOAs to reduce turf and replace with water-efficient plants. See the Fund Financial Statements tab, pages 28-37.

The Housing Authority Fund

The Indian Wells Housing Authority was created to promote and encourage affordable housing units' retention, rehabilitation, and development. Affordable housing units are units occupied by households not exceeding the affordable income limits established by the Department of Housing and Urban Development (HUD).
12

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The Housing Authority Fund oversees the City's affordable housing operations. The fund accounts for the general expenditures for affordable housing operations and reports to the State Department of Housing Community Development on community housing projects annually. At the end of the most recent fiscal year, the fund balance in the Housing Authority Fund was $15,429,469.

2023 2022 $ Change % Change
Revenues:

Interest income 154,080$ (564,442)$ 718,522$ -127.3% Total Revenues 154,080 (564,442) 718,522 -127.3% Expenditures:

General government 1,847,021 1,923,007 (75,986) -4.0% Community development 250,000 250,000 - 0.0% Total Expenditures 2,097,021 2,173,007 (75,986) -3.5% Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,942,941) (2,737,449) 794,508 -29.0% Other Financing Sources (Uses)
Transfer in 4,442,555 267,838 4,174,717 0.0% Transfer out (87,019) - (87,019) 0.0% Total Transfers 4,355,536 267,838 4,087,698 1526.2% Net Change in Fund Balance 2,412,595 $ (2,469,611) $ 4,882,206 $ -197.7% Table 6
Housing Authority Financial Summary

Revenues consist of $154,080 in interest income earned during the fiscal year 2022/23 due to a GASB 31 adjustment. Expenditures totaling $2,097,021 during the fiscal year 2022/23 include staff salaries and benefits, professional services such as annual audits and legal counsel, general liability insurance premiums, contributions to non-profit homelessness organizations, and capital maintenance projects. The fiscal year 2022/23 expenditures decreased by $75,986 compared to the prior year, primarily due to a reduction in capital infrastructure and maintenance projects. See the Fund Financial Statements tab, pages 28-37.

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The Emergency Services Upgrade Fund

The Emergency Services Upgrade Fund oversees contractual services for fire suppression, fire prevention, fire investigation, fire safety education, emergency management, and paramedic services—the City of Indian Wells contracts with the Riverside County Fire Department, a subcontract of CALFIRE. At the end of the most recent fiscal year, the fund balance in the Emergency Services Upgrade Fund was $4,472,536.

2023 2022 $ Change % Change
Revenues:

Taxes 4,680,767$ 4,217,707$ 463,060$ 11.0% Charges for services 604,356 603,203 1,153 0.2% Interest income (loss) (1,691) (175,012) 173,321 -99.0% Assessments 611,631 602,774 8,857 1.5% Other income 10,677 8,598 2,079 24.2% Total Revenues 5,905,740 5,257,270 648,470 12.3% Expenditures:

Public safety 6,160,835 4,252,793 1,908,042 44.9% Capital Outlay 18,397 18,064 333 1.8% Total Expenditures 6,179,232 4,270,857 1,908,375 44.7% Excess (Deficiency) of Revenues
Over (Under) Expenditures (273,492) 986,413 (1,259,905) -127.7% Other Financing Sources (Uses)
Transfer out (145,031) - (145,031) 0.0% Total Transfers (145,031) - (145,031) 0.0% Net Change in Fund Balance (418,523) $ 986,413 $ (1,404,936) $ -142.4% Table7
Emergency Services Upgrade Financial Summary

Revenues collected during the fiscal year 2022/23 include a $4,680,767 fire tax credit (a form of property tax) collected by the County of Riverside on behalf of the City. In addition, charges for services of $604,356 were collected from the ambulance billing program and a citywide assessment that generates another 611,631 annually. Interest income (loss) was ($1,691) due to a GASB 31 adjustment.

Expenditures totaling $6,160,835 during the fiscal year 2022/23 include staff salaries and benefits, professional services, contract fire costs, general liability insurance premiums, maintenance projects, and capital outlay. The fiscal year 2022/23 expenditures increased by $1,908,042 compared to the prior year, primarily due to increased service levels on the engine. See the Fund Financial Statements tab, pages 28-37.

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The Indian Wells Financing Authority

In February 2022, the Indian Wells Financing Authority issued lease revenue bonds of $13,930,000 to provide funds to finance public improvements and energy efficiency improvements in the City. The bonds dated February 10, 2022, and issued at a premium of $1,338,171.35 are payable semiannually on April 1 and October 1 of each year, commencing October 1, 2022, and mature in 2042.

The bonds are payable from base rental payments to be made by the City for the right to use certain real property and improvements of the City pursuant to a Lease Agreement dated February 1, 2022. At the end of the most recent fiscal year, the fund balance in the Indian Wells Financing Authority Fund was $10,721,626.

2023 2022 $ Change % Change
Revenues:

Investment income 379,938$ 10,250$ 369,688$ 100.0% Total Revenues 379,938 10,250 369,688 100.0% Expenditures:

Bond issuance costs - 235,117 (235,117) -100.0% Principal retirement 380,000 - 380,000 100.0% Interest and fiscal charges 586,874 - 586,874 100.0% Total Expenditures 966,874 235,117 731,757 311.2% Excess (Deficiency) of Revenues
Over (Under) Expenditures (586,936) (224,867) (362,069) 100.0% Other Financing Sources (Uses)
Issuance of bonds - 13,930,000 (13,930,000) -100.0% Premium on sale of bonds - 1,338,171 (1,338,171) -100.0% Transfer in 966,875 - 966,875 100.0% Transfer out (1,752,399) (2,949,218) 1,196,819 -40.6% Total Transfers (785,524) 12,318,953 (13,104,477) -106.4% Net Change in Fund Balance (1,372,460) $ 12,094,086 $ (13,466,546) $ -111.3% Table 8
Indian Wells Financing Authority Financial Summary

Revenues collected during the fiscal year 2022/23 include $379,938 in interest income. Debt service began during the fiscal year. Total debt service totaled $966,874, including $380,000 in principal retirements and $586,874 in interest and fiscal charges.

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The Capital Improvements Fund

The Capital Improvement Program is the City's comprehensive multi -year plan for the development of the City's capital facilities and improv ements. The plan outlines the expected capital projects over the next five years. Capital projects usually involve high costs, take a year or more to complete, and result in the creation of a capital asset.

A capital improvement project includes the construction, acquisition, expansion, rehabilitation, or non-routine maintenance work that generally costs $5,000 or more and results in the creation or preservation of a capital asset. The Capital Improvement Program attempts to identify all capital maintenance, facilities, and improvements needed within the next five years. It may include significant equipment purchases such as vehicles, capital-related studies, and master plans. At the end of the most recent fiscal year, the fund balance in the Capital Improvements Fund was $7,854,742.

2023 2022 $ Change % Change
Revenues:

Intergovernmental 184,414$ 233,642$ (49,228)$ -21.1% Investment income 3,484 (298,938) 302,422 -101.2% Other income - 1,013 (1,013) 100.0% Total Revenues 187,898 (64,283) 252,181 -392.3% Expenditures:

General government 134,511 228,553 (94,042) -41.1% Community development - 2,500,000 (2,500,000) 100.0% Capital outlay 5,147,043 4,133,746 1,013,297 24.5% Total Expenditures 5,281,554 6,862,299 (1,580,745) -23.0% Excess (Deficiency) of Revenues
Over (Under) Expenditures (5,093,656) (6,926,582) 1,832,926 -26.5% Other Financing Sources (Uses)
Proceeds from sale of capital assets - 525,000 (525,000) 100.0% Transfer in 3,772,129 6,939,608 (3,167,479) -45.6% Total Transfers 3,772,129 7,464,608 (3,692,479) -49.5% Net Change in Fund Balance (1,321,527) $ 538,026 $ (1,859,553) $ -345.6% Table 9
Capital Improvements Financial Summary

Revenues collected during the fiscal year 2022/23 include $184,414 in intergovernmental revenues and interest income totaling $3,484 due to a GASB 31 adjustment.

Expenditures totaling $5,281,554 during the fiscal year 2022/23 include $134,511 in general government costs and $5,147,043 in new capital investments within the community. See the Fund Financial Statements tab, pages 28-37.

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City Streets Capital Reserve

City Streets Capital Reserve Fund is part of the City’s good governance replacement plan. The purpose of capital reserves is to provide the funding necessary to construct capital improvement projects within the City.

In addition, the capital asset replacement plan establishes annual contribution requirements to fund the long- term capital replacement program.

The City’s Capital Contribution Policy contributes to the Capital Reserve program and funds future infrastructure projects, streets, bridges, and City facilities. Financial reserves are an effective tool to support municipal asset management planning, as they allow funds to be set aside to manage assets throughout their lifecycle. As a general budget principle concerning the use of reserves, the City Council decides whether to appropriate funds from Reserve accounts.

2023 2022 $ Change % Change
Revenues:

Investment income 55,779$ (811,971)$ 867,750$ -106.9% Total Revenues 55,779 (811,971) 867,750 -106.9% Expenditures:

Capital outlay 2,500,000 - 2,500,000 0.0% Total Expenditures 2,500,000 - 2,500,000 0.0% Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,444,221) (811,971) (1,632,250) 201.0% Other Financing Sources (Uses)
Transfer in 814,000 820,000 (6,000) 100.0% Total Transfers 814,000 820,000 (6,000) 100.0% Net Change in Fund Balance (1,630,221) $ 8,029 $ (1,638,250) $ -20404.2% Table 10
City Streets Capital Reserve Financial Summary

The City Streets Capital Reserve is funded through interest income and transfers. When capital funding is needed, the City Council approves the transfer of funds from the capital replacement funds to the capital improvement fund.

The City Council may approve this transfer as a part of the annual budget cycle or as a transfer for a specific capital improvement. Before such approval, the City shall present applicable financial information regarding the capital replacement funds, including beginning fund balances, anticipated revenues, and the anticipated ending fund balance after the proposed funds' transfer. See the Fund Financial Statements tab, pages 28-37.

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Park Facilities In Lieu

Park-in-lieu fees are used for the construction of recreation and open spaces charged under the Quimby Act to new residential development occurring in a subdivision at a standard of 3.0 acres per 1,000 residents.

Under this framework, developers are required to pay a fee, often calculated based on the extent of their development project, in lieu of providing on-site park or recreational facilities. The collected fees are utilized to fund the acquisition, development, and maintenance of parks and open spaces within the jurisdiction, thereby ensuring that the community's recreational needs are met.

2023 2022 $ Change % Change
Revenues:

Intergovernmental -$ 536,863$ (536,863)$ -100.0% Developer fees 111,021 156,136 (45,115) -28.9% Total Revenues 111,021 692,999 (581,978) -84.0% Expenditures:

General government 2,822 1,073,726 (1,070,904) -99.7% Total Expenditures 2,822 1,073,726 (1,070,904) -99.7% Excess (Deficiency) of Revenues
Over (Under) Expenditures 108,199 (380,727) 488,926 -128.4% Net Change in Fund Balance 108,199 $ (380,727) $ 488,926 $ -128.4% Table 11
Park Facilities In Lieu Financial Summary

General Fund Budgetary Highlights

Actual revenues received in the General Fund were $5,770,124 higher than budgeted, primarily attributed to the following:

• Strong property tax growth.
• Resurgence in the tourism economy.
• Reopening of the BNP Paribas tennis tournament.
• Increase in licenses and permits

The final budget for General Fund expenditures was $1,156,531 more than the original budget due to the following:

• Increase in public safety services
• Increased spending for resident amenities
• The implementation of the citywide turf rebate program

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Government Activities

Table 12 presents the cost of the City's five most extensive programs: general government, community development, public safety, public works, and golf resort—and each program’s net cost (total cost less revenues generated by the activities).

The net cost of services indicates that the overall cost of government is greater than the revenues generated to support it from fees and user charges. This suggests that the taxes and general revenues charged by the City are necessary to support its operations.

2023 2022 2023 2022
Government Activities
General government 15,297,837$ 2,804,408$ (14,444,907)$ (1,997,180)$ Public safety 13,309,494 9,003,835 (5,934,663) (883,494) Community development 6,782,254 5,479,125 (5,277,241) (3,910,250) Public works 11,245,752 4,719,058 (7,300,141) (587,974) Interest 457,880 463,970 (457,880) (463,970) Total Governmental Activities 47,093,217 22,470,396 (33,414,832) (7,842,868) Business-Type Activities
Golf resort 21,970,857 18,815,101 (782,096) (2,612,671) Total Business-Type Activates 21,970,857 18,815,101 (782,096) (2,612,671) Total Primary Government 69,064,074 $ 41,285,497 $ (34,196,928) $ (10,455,539) $ Net Cost of ServicesTotal Cost of Services
Table 12
Net Cost of Governmental Activities

See the Statement of Activities on page 27 for further details.

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Capital Assets

The Statement of Net Position includes such infrastructure assets as City-maintained buildings, bridges, streets, storm drains, equipment, traffic signals, and vehicles. Infrastructure assets, except land, are depreciated to reflect a net infrastructure amount.

Government Activities

Balance at Balance at
July 1, 2022 Additions Deletions June 30, 2023
Capital assets, not being
depreciated:

Land 33,289,388 $ - $ - $ 33,289,388 $ Construction in progress 3,268,022 3,442,166 (97,876) 6,612,312 Total capital assets not
being depreciated 36,557,410 3,442,166 (97,876) 39,901,700 Capital assets, being depreciated:

Intangible 2,500,000 2,500,000 (2,500,000) 2,500,000 Buildings and improvements 67,605,378 265,455 (584,762) 67,286,071 Equipment 2,184,084 80,544 (230,825) 2,033,803 Infrastructure 114,705,473 1,292,589 (6,280) 115,991,782 Total capital assets
being depreciated 186,994,935 4,138,588 (3,321,867) 187,811,656 Less accumulated depreciation for:

Intangible (2,375,000) (250,000) 2,375,000 (250,000) Buildings and improvements (31,216,725) (1,577,629) 88,429 (32,705,925) Equipment (1,733,905) (144,057) 230,825 (1,647,137) Infrastructure (39,105,611) (2,008,832) 6,280 (41,108,163) Total accumulated
depreciation (74,431,241) (3,980,518) 2,700,534 (75,711,225) Total capital assets
being depreciated, net 112,563,694 158,070 (621,333) 112,100,431 Total capital assets, net 149,121,104 $ 3,600,236 $ (719,209) $ 152,002,131 $ Table 13
Summary of Changes in Capital Assets
Governmental Activities

Governmental Activities capital assets net of depreciation increased by $2,881,027 from $149,121,104 to $152,002,131. The City acquired $7,580,754 in new capital assets, and construction is in progress during the fiscal year. Deletions totaled $719,209, and the depreciation expense reached $3,980,518. Details of the City’s capital assets can be found in Note 7 Capital Assets on pages 59-61 of the Notes to Basic Financial Statements.

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Business-Type Activities

Balance at Balance at
July 1, 2022 Additions Deletions June 30, 2023
Capital assets, not being
depreciated:

Land 13,910,956 $ - $ - $ 13,910,956 $ Construction in progress 121,421 - (121,421) - Total capital assets not
being depreciated 14,032,377 - (121,421) 13,910,956 Capital assets, being depreciated:

Buildings and improvements 85,279,178 480,372 (45,778) 85,713,772 Equipment 7,531,178 406,182 (3,441,138) 4,496,222 Infrastructure 433,390 - - 433,390 Right to use asset 545,025 13,263 (3,179) 555,109 Total capital assets
being depreciated 93,788,771 899,817 (3,490,095) 91,198,493 Less accumulated depreciation for:

Buildings and improvements (54,681,867) (1,895,232) 20,255 (56,556,844) Equipment (5,716,121) (592,206) 3,046,686 (3,261,641) Infrastructure (115,569) (7,224) - (122,793) Right to use asset (108,349) (134,951) 3,179 (240,121) Total accumulated
depreciation (60,621,906) (2,629,613) 3,070,120 (60,181,399) Total capital assets
being depreciated, net 33,166,865 (1,729,796) (419,975) 31,017,094 Total capital assets, net 47,199,242 $ (1,729,796) $ (541,396) $ 44,928,050 $ Table 14
Summary of Changes in Capital Assets
Business-Type Activities

Capital assets from Business-type Activities net of depreciation decreased by $2,271,192 from 47,199,242 to $44,928,050. The Indian Wells Golf Resort acquired $899,817 in new capital assets, and construction was in progress during the fiscal year. Deletions totaled $541,396, and the depreciation expense reached $2,629,613.

Details of the City’s capital assets can be found in Note 7 Capital Assets on pages 59-61 of the Notes to Basic Financial Statements.

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Long-term Liabilities

At year-end, the City's governmental activities had $14,318,667 in long-term liabilities.

Description 2023 2022 $ Change % Change
Compensated absences 634,307 $ 582,270 $ 52,037 $ 8.9% 2022 Lease Revenue Bonds 13,550,000 13,930,000 (380,000) -2.7% Premium 1,249,696 1,316,052 (66,356) -5.0% Lease Payable 330,461 447,855 (117,394) -26.2% Net Pension Liability (asset) (700,736) (6,449,180) 5,748,444 -89.1% Net OPEB Liability (asset) (745,061) (2,196,587) 1,451,526 -66.1% Total Long Term Debt 14,318,667 $ 7,630,410 $ 6,688,257 $ 87.7% Table 15
Summary of Changes in Long-Term Liabilities

The City reported $634,307 in compensated absences liability as of June 30, 2023. The City reserves the outstanding compensated absences liability in the Employee Leave Accrual Fund. The long-term strategy of the Employee Leave Accrual Fund is to set aside cash reserves in case of separation. Full-time employees accrue several types of paid leave, including vacation, holiday, administrative, sick, and compensatory time accruals. In addition, the number of leave employees is eligible to accrue governed by Memorandum of Understanding (MOUs), personnel contracts, and Personnel Rules and Regulations.

The Indian Wells Financing Authority reported $13,550,000 in outstanding lease revenue bonds along with a premium of $1,249,696 originally issued to provide funds to finance public improvements and energy efficiency improvements in the City.

The City reported a net pension liability (asset) for its proportionate share of the net pension liability of the Miscellaneous Plan as of June 30, 2023, in the amount of ($700,736). The City’s net pension liability for the Miscellaneous Plan is measured as a proportionate share of the net pension liability.

The City’s proportion of the net pension liability (asset) was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. Accordingly, the City's proportionate share of the net pension liability for the Miscellaneous Plan as of June 30, 2022, and 2023 was as follows:

Proportion - June 30, 2022 -0.33964%
Proportion - June 30, 2023 -0.01498%
Change - Increase/(Decrease) 0.32466%

The City has established a Retiree Healthcare Plan (HC Plan) and participates in an agent multiple employers defined benefit retiree healthcare plan administered by the CalPERS, which acts as a typical investment and administrative agent for its participating member employers. City contracts with the employee associations establish benefit provisions under the HC Plan. In addition, the City participates in the California Employers’ Retiree Benefits Fund (CERBT). The City reported a net liability (asset) of ($745,061) as of June 30, 2023.

Details of the City’s outstanding debt can be found in Note 8, Long-Term Liabilities, Note 9, Defined Benefit Pension Plan, and Note 12, Other Post Employment Benefit Plan of the Notes to Basic Financial Statements. 22

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Economic Factors and Next Year’s Budgets and Rates

Despite recent interest rate increases, inflation remains well above the Federal Reserve’s stated stability goal.

Further, factors that tend to predict future inflation—such as recent changes in consumer spending, incomes, and prices for food and energy—suggest that heightened inflation pressures could remain for some time.

These observations indicate that the Federal Reserve will take additional steps to curb inflation in the coming months, raising the risk of a recession.

70.0% of all General Fund revenues.

Tourism significantly impacts the Leisure and Hospitality industries of the Coachella Valley; when the economy is in a recession, people travel less. While international tourism has yet to return to pre-pandemic levels in Southern California and the Coachella Valley, much of it has been compensated by Southern Californians traveling to the area even during hot months. Falling into a new recession will cut tourism from the rest of the U.S. and California.

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Request for Information

This financial report is designed to provide a general overview of the City of Indian Wells' finances for those interested in the government's finances. Questions concerning any information provided in this report or requests for additional financial information should be addressed to Kevin McCarthy, City Finance Director, 44-950 Eldorado Drive, Indian Wells, California 92210.
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Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 66,015,384$ 2,404,795$ 68,420,179$ Restricted cash and investments 11,820,968 - 11,820,968 Receivables
Accounts 2,315,187 47,259 2,362,446 Accrued interest 306,000 5,802 311,802 Prepaid costs 112,053 65,846 177,899 Deposits 12,140,000 - 12,140,000 Inventories - 516,741 516,741 Internal balances 4,389,820 (4,389,820) - Notes receivable 1,174,554 - 1,174,554 Due from Successor Agency 14,187,226 - 14,187,226 Net pension asset 680,485 20,251 700,736 Net OPEB asset 745,061 - 745,061 Capital assets not being depreciated 39,901,700 13,910,956 53,812,656 Capital assets, net of depreciation 112,100,431 31,017,094 143,117,525 Total assets 265,888,869 43,598,924 309,487,793 Deferred Outflows of Resources
Deferred amounts related to pensions 5,487,755 163,316 5,651,071 Deferred amounts related to OPEB 1,806,981 - 1,806,981 Total deferred outflows of resources 7,294,736 163,316 7,458,052 Liabilities
Current liabilities
Accounts payable 3,714,242 545,476 4,259,718 Accrued liabilities 205,638 687,644 893,282 Deposits payable 1,189,638 333,472 1,523,110 Interest payable 188,334 - 188,334 Noncurrent liabilities
Due within one year
Compensated absences 119,164 - 119,164 Long-term debt 536,356 139,597 675,953 Due in more than one year
Compensated absences 515,143 - 515,143 Long-term debt 14,263,340 190,864 14,454,204 Total liabilities 20,731,855 1,897,053 22,628,908 Deferred Inflows of Resources
Deferred amounts related to pensions 1,485,073 44,196 1,529,269 Deferred amounts related to OPEB 968,612 - 968,612 Total deferred inflows of resources 2,453,685 44,196 2,497,881 Net Position
Net investment in capital assets 147,924,061 44,597,589 192,521,650 Restricted for
Community development projects 725,787 - 725,787 Housing 15,429,469 - 15,429,469 Public safety 6,183,630 - 6,183,630 Public works 2,345,243 - 2,345,243 Pension obligations 5,567,799 139,371 5,707,170 OPEB obligations 1,798,141 - 1,798,141 Unrestricted 70,023,935 (2,915,969) 67,107,966 Total Net Position 249,998,065$ 41,820,991$ 291,819,056$ City of Indian Wells, California
Statement of Net Position
June 30, 2023
See Notes to Financial Statements
26 Page 132 of 439
Operating Capital
Charges for Contributions Contributions Governmental Business-type Functions/Programs Expenses Services and Grants and Grants Activities Activities Total Government Activities
General government 15,297,837$ 107,012$ 745,918$ -$ (14,444,907)$ -$ (14,444,907)$ Public safety 13,309,494 604,356 6,770,475 - (5,934,663) - (5,934,663) Community development 6,782,254 1,483,981 21,032 - (5,277,241) - (5,277,241) Public works 11,245,752 23,469 3,719,376 202,766 (7,300,141) - (7,300,141) Interest 457,880 - - - (457,880) - (457,880) -
Total governmental activities 47,093,217 2,218,818 11,256,801 202,766 (33,414,832) - (33,414,832) Business-type Activities
Golf resort operations 21,970,857 21,188,761 - - - (782,096) (782,096) Total business-type activities 21,970,857 21,188,761 - - - (782,096) (782,096) Total Primary Government 69,064,074$ 23,407,579$ 11,256,801$ 202,766$ (33,414,832) (782,096) (34,196,928) General Revenues
Taxes
Property taxes, levied for general purpose 3,945,967 - 3,945,967 Transient occupancy taxes 12,450,662 - 12,450,662 Sales taxes 1,766,438 - 1,766,438 Franchise taxes 1,231,605 - 1,231,605 Business licenses taxes 150,396 - 150,396 Admission taxes 3,939,996 - 3,939,996 Investment income (loss) 3,137,278 (9,708) 3,127,570 Other 481,138 26,000 507,138 Total general revenues 27,103,480 16,292 27,119,772 Transfers (44,606) 44,606 - Change in Net Position (6,355,958) (721,198) (7,077,156) Net Position, Beginning of Year 256,354,023 42,542,189 298,896,212 Net Position, End of Year 249,998,065$ 41,820,991$ 291,819,056$ Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government
City of Indian Wells, California
Statement of Activities
Year Ended June 30, 2023
See Notes to Financial Statements
27

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Debt Service
Emergency Indian Wells City Streets Nonmajor Total
Housing Services Financing Capital Capital Park Facilities Governmental Governmental General Authority Upgrade Authority Improvements Reserve In Lieu Funds Funds Assets
Cash and investments 16,695,987$ 3,358,493$ 5,297,686$ -$ 7,517,855$ 17,170,499$ -$ 13,109,589$ 63,150,109$ Restricted cash and investments - - - 10,721,625 - - - - 10,721,625 Receivables
Accounts 1,922,627 - 133,352 - 66,745 - - 192,463 2,315,187 Accrued interest 82,578 57,882 20,804 1 21,387 67,425 - 50,820 300,897 Prepaid costs 111,390 - - - - - - 663 112,053 Deposits - 12,140,000 - - - - - - 12,140,000 Due from other funds 5,810,737 - - - 537,887 - - - 6,348,624 Notes receivable 1,068,879 - - - 105,675 - - - 1,174,554 Due from Successor Agency 14,187,226 - - - - - - - 14,187,226 Total assets 39,879,424$ 15,556,375$ 5,451,842$ 10,721,626$ 8,249,549$ 17,237,924$ -$ 13,353,535$ 110,450,275$ Liabilities and Fund Balances
Liabilities
Accounts payable 2,105,917$ 94,528$ 971,053$ -$ 90,639$ -$ 1,667$ 448,946$ 3,712,750$ Accrued liabilities 160,548 32,378 8,253 - - - - 4,459 205,638 Deposits payable 756,416 - - - 304,168 - - 129,054 1,189,638 Due to other funds 208,485 - - - - - 1,373,646 376,673 1,958,804 Total liabilities 3,231,366 126,906 979,306 - 394,807 - 1,375,313.00 959,132 7,066,830 Fund Balances
Nonspendable
Prepaid costs 111,390$ -$ -$ -$ -$ -$ -$ 663$ 112,053 Notes and loans 15,256,105 - - - - - - - 15,256,105 Restricted for
Community development - 15,429,469 - - - - - 725,787 16,155,256 Public safety - - 4,472,536 - - - - 1,711,094 6,183,630 Public works - - - - - - - 2,345,243 2,345,243 Debt service - - - 10,721,626 - - - - 10,721,626 Committed to
Capital projects - - - - - - - 494,155 494,155 Assigned
Capital projects - - - - 7,854,742 17,237,924 - 7,500,670 32,593,336 Unassigned 21,280,563 - - - - - (1,375,313) (383,209) 19,522,041 Total fund balances 36,648,058 15,429,469 4,472,536 10,721,626 7,854,742 17,237,924 (1,375,313) 12,394,403 103,383,445 Total Liabilities and Fund Balances 39,879,424$ 15,556,375$ 5,451,842$ 10,721,626$ 8,249,549$ 17,237,924$ -$ 13,353,535$ 110,450,275$ City of Indian Wells, California
Balance Sheet - Governmental Funds
Year Ended June 30, 2023
Special Revenue Funds Capital Projects Funds
See Notes to Financial Statements
28

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Amounts reported for governmental activities in the statement of net position are different because:

Total fund balances - total governmental funds 103,383,445$ Capital assets net of related accumulated depreciation have not been included as financial resources in governmental fund activity. 152,002,131 Compensated absences are not considered due and payable and therefore have not been included in the governmental funds. (634,307)
Long-term debt is not considered due and payable and therefore has not been included in the governmental funds. (14,799,696) Interest payable is not considered due and payable and therefore has not been included in the governmental funds. (188,334)
Deferred outflows related to pensions 5,487,755
Deferred inflows related to pensions (1,485,073)
Proportionate share of net pension asset is not a financial resource and, therefore, has not been included in governmental fund activity. 680,485 Internal service funds are used by management to charge the costs of certain activities, such as employee benefits, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities of the statement of net position. 5,551,659
Net Position of Governmental Activities 249,998,065$
City of Indian Wells, California
Reconciliation of the Statement of Net Position - Governmental Funds June 30, 2023
See Notes to Financial Statements
29 Page 135 of 439
Debt Service
Emergency Indian Wells City Streets Nonmajor Total
Housing Services Financing Capital Capital Park Facilities Governmental Governmental General Authority Upgrade Authority Improvements Reserve In Lieu Funds Funds Revenues
Taxes 23,099,286$ -$ 4,680,767$ -$ -$ -$ -$ 385,778$ 28,165,831$ Licenses and permits 925,135 - - - - - - - 925,135 Intergovernmental 933,561 - - - 184,414 - - 746,364 1,864,339 Charges for services 558,846 - 604,356 - - - - - 1,163,202 Investment income (loss) 101,144 147,595 (1,691) 379,938 3,484 55,779 - 62,550 748,799 Fines and forfeitures 107,012 - - - - - - 23,469 130,481 Rental income - - - - - - - 2,310,605 2,310,605 Assessments - - 611,631 - - - - 3,920,352 4,531,983 Developer fees - - - - - - 111,021 571,456 682,477 Other income 158,635 6,485 10,677 - - - - 5,342 181,139 Total revenues 25,883,619 154,080 5,905,740 379,938 187,898 55,779 111,021 8,025,916 40,703,991 Expenditures
Current
General government 10,257,611 1,847,021 - - 134,511 - 2,822 - 12,241,965 Public safety 5,096,149 - 6,160,835 - - - - 1,536,689 12,793,673 Community development 2,051,675 250,000 - - - - - 2,367,530 4,669,205 Public works 2,985,140 - - - - - - 3,384,604 6,369,744 Capital outlay - - 18,397 - 5,147,043 2,500,000 - 710,648 8,376,088 Debt service:

Principal retirement - - - 380,000 - - - - 380,000 Interest and fiscal charges - - - 586,874 - - - - 586,874 Total expenditures 20,390,575 2,097,021 6,179,232 966,874 5,281,554 2,500,000 2,822 7,999,471 45,417,549 Excess (Deficiency) of Revenues
over (under) Expenditures 5,493,044 (1,942,941) (273,492) (586,936) (5,093,656) (2,444,221) 108,199 26,445 (4,713,558) Other Financing Sources (Uses)
Transfers in 18,500 4,442,555 - 966,875 3,772,129 814,000 - 788,398 10,802,457 Transfers out (4,127,789) (87,019) (145,031) (1,752,399) - - - (4,734,825) (10,847,063) Total other financing sources (uses) (4,109,289) 4,355,536 (145,031) (785,524) 3,772,129 814,000 - (3,946,427) (44,606) Net Change in Fund Balances 1,383,755 2,412,595 (418,523) (1,372,460) (1,321,527) (1,630,221) 108,199 (3,919,982) (4,758,164) Fund Balances, Beginning of Year 35,264,303 13,016,874 4,891,059 12,094,086 9,176,269 18,868,145 (1,483,512) 16,314,385 108,141,609 Fund Balances, End of Year 36,648,058$ 15,429,469$ 4,472,536$ 10,721,626$ 7,854,742$ 17,237,924$ (1,375,313)$ 12,394,403$ 103,383,445$ City of Indian Wells, California
Statement of Revenue, Expenditures and Changes in Fund Balances - Governmental Funds Year Ended June 30, 2023
Special Revenue Funds Capital Projects
See Notes to Financial Statements
30

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Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds (4,758,164)$ Governmental funds report capital projects (outlays) as expenditures.

However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.

Adjustments for capital outlay, net of asset deletions, proceeds from the sale of assets, and the net depreciation expense is reported in the governmental activities. 2,881,027
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 61,240 Governmental funds report pension contributions as expenditures.

However, in the statement of activities, pension expense is measured as the change in net pension liability and the amortization of deferred outflows and inflows related to pensions. This amount represents the net change in pension related amounts. (6,686,056)
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.

Principal repayments 380,000
Amortization of premium 66,356
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 62,638
Internal service funds are used by management to charge the costs of certain activities, such as employee benefits, to individual funds.

The net revenues (expenses) of the internal service fund is reported with governmental activities. 1,637,001
Change in net position of governmental activities (6,355,958)$ City of Indian Wells, California
Reconciliation of the Statement of Revenue, Expenditures and Changes in Fund Balances to the Statement of Year Ended June 30, 2023
Activities - Governmental Funds
See Notes to Financial Statements
31

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Business-Type Governmental
Activities Activities
Golf Resort Internal Service
Operations Funds
Current Assets
Cash and investments 2,404,795$ 2,865,275$ Restricted cash and investments - 1,099,343 Receivables
Accounts 47,259 -
Accrued interest 5,802 5,103
Prepaid costs 65,846 -
Inventories 516,741 -
Total current assets 3,248,928 3,969,721 Noncurrent Assets
Net pension asset 20,251 -
Net OPEB asset - 745,061 Capital assets, not being depreciated 13,910,956 - Capital assets, net of depreciation 31,017,094 - Total noncurrent assets 44,948,301 745,061 Total assets 48,197,229 4,714,782
Deferred Outflows of Resources
Deferred amounts related to pension 163,316 - Deferred amounts related to OPEB - 1,806,981 Total deferred outflows of resources 163,316 1,806,981 Liabilities
Current Liabilities
Accounts payable 545,476 1,492
Accrued liabilities 687,644 -
Deposits payable 333,472 -
Due to other funds 4,598,305 -
Leases payable 139,597 -
Total current liabilities 6,304,494 1,492 Noncurrent Liabilities
Lease payable, net of current 190,864 - Total noncurrent liabilities 190,864 - Total liabilities 6,495,358 1,492
Deferred Inflows of Resources
Deferred amounts related to pension 44,196 - Deferred amounts related to OPEB - 968,612 Total deferred inflows of resources 44,196 968,612 Net Position
Net investment in capital assets 44,597,589 - Restricted for Pension 139,371 884,632 Restricted for OPEB - 1,798,141 Unrestricted (2,915,969) 2,868,886
Total Net Position 41,820,991$ 5,551,659$
Statement of Net Position - Proprietary Funds
.June 30, 2023
City of Indian Wells, California
See Notes to Financial Statements
32

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Business-Type Governmental
Activities Activities
Golf Resort Internal Service
Operations Funds
Operating Revenues
Charges for services 21,233,367$ -$
Interdepartmental charges - 2,563,611 Total operating revenues 21,233,367 2,563,611 Operating Expenses
Operations 18,230,460 -
General and administration 668,571 1,049,090 Depreciation 2,629,613 -
Total operating expenses 21,528,644 1,049,090 Operating Income (Loss) (295,277) 1,514,521 Nonoperating Revenues (Expenses)
Investment income (loss) (9,708) 77,874 Interest expense (25,416) -
Loss on disposition of capital assets (416,797) - Other nonoperating revenue 26,000 - Total nonoperating
revenues (expenses) (425,921) 77,874
Income before transfers (721,198) 1,592,395 Transfers In - 44,606
Changes in Net Position (721,198) 1,637,001 Net Position, Beginning of Year 42,542,189 3,914,658 Net Position, End of Year 41,820,991$ 5,551,659$ City of Indian Wells, California
Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds Year Ended June 30, 2023
See Notes to Financial Statements
33

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Business-Type Governmental
Activities Activities
Golf Resort Internal
Operations Service Funds
Operating Activities
Cash received from customers 21,272,612$ -$
Cash received from interfund service provided - 2,565,336 Cash received from others 26,000 -
Cash payments to suppliers for goods and services (17,820,465) (1,352,770) Cash payments to employees for services (469,595) - Net Cash from (used for) Operating Activities 3,008,552 1,212,566 Non-Capital Financing Activities
Cash received from other funds - 44,606 Cash paid to other funds (1,446,965) -
Net Cash from (used for) Noncapital Financing Activities (1,446,965) 44,606 Capital and Related Financing Activities
Purchase of capital assets (775,218) -
Proceeds from leases payable 13,263 -
Repayment of leases payable (156,073) -
Net Cash from (used for) Capital and Related Financing Activities (918,028) - Investing Activities
Gain (loss) on investments (13,134) 73,638 Net Change in Cash and Cash Equivalents 630,425 1,330,810 Cash and Cash Equivalents, Beginning of Year 1,774,370 2,633,808 Cash and Cash Equivalents, End of Year 2,404,795$ 3,964,618$ City of Indian Wells, California
Statement of Cash Flows - Proprietary Funds
Year Ended June 30, 2023
See Notes to Financial Statements
34

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Business-Type Governmental
Activities Activities
Golf Resort Internal
Operations Service Funds
Reconciliation of operating income (loss)
to net cash provided by (used for)
operating activities:

Operating income (loss) (295,277)$ 1,514,521$ Adjustments to reconcile operating
income (loss) to net cash from
(used for) operating activities
Depreciation 2,629,613 -
Other nonoperating revenue 26,000 -
Changes in
Accounts receivable 39,245 1,725
Prepaid costs 40,740 -
Inventory 44,847 -
Net OPEB asset and related balances - (304,563) Net pension asset and related balances 198,976 - Accounts payable 44,155 883
Accrued liabilities 255,223 -
Deposits payable 25,030 -
Net Cash from (used for) operating activities 3,008,552$ 1,212,566$ Noncash financing, capital and investing activities for the year ended June 30, 2023:

Loss on disposal of capital assets 416,797 $ - $ Year Ended June 30, 2023
City of Indian Wells, California
Statement of Cash Flows - Proprietary Funds
See Notes to Financial Statements
35

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Private-Purpose
Trust Fund
Successor
Agency of the
Former RDA
Assets
Cash and investments 7,385,305$
Restricted cash and investments 2,523
Receivables
Accrued interest 28,533
Prepaid costs 103,885
Total assets 7,520,246
Deferred Outflows of Resources
Deferred loss on refunding 189,202
Liabilities
Interest payable 781,690
Due to City 14,187,226
Long-term liabilities
Due in one year 3,425,000
Due in more than one year 56,118,061
Total liabilities 74,511,977
Net Position (Deficit)
Held in trust for other purposes (66,802,529)$
City of Indian Wells, California
Statement of Fiduciary Net Position - Fiduciary Funds
Year Ended June 30, 2023
See Notes to Financial Statements
36

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Private-Purpose
Trust Fund
Successor
Agency of the
Former RDA
Additions
Taxes 9,418,295$
Investment income 78,621
Total additions 9,496,916
Deductions
Administrative expenses 300,000
Interest and fiscal charges 1,818,515
Total deductions 2,118,515
Changes in Net Position 7,378,401
Net Position (Deficit), Beginning of the Year (74,180,930) Net Position (Deficit), End of the Year (66,802,529)$
City of Indian Wells, California
Statement of Changes in Fiduciary Net Position - Fiduciary Funds Year Ended June 30, 2023
See Notes to Financial Statements
37

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City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies

Reporting Entity

The City of Indian Wells (City) was incorporated during July 1967, under the General Laws of the State of California.

Indian Wells became a Charter City in 2003. The City operates under a Council-Manager form of government and provides the following services: public safety, highways and streets, sanitation, public improvements, planning and zoning, parks and recreation, and general administrative services.

Per GASB Statement No. 14, The Financial Reporting Entity and Statement No. 61, The Financial Reporting Entity:

Omnibus, the City (the primary government) has included within its reporting entity, for financial reporting purposes, all component units which meet the requirement described in these statements. GASB Statements No. 14 and No. 61 define financial accountability as follows: The primary government is accountable if the primary government appoints a voting majority of that organization and can impose its will or if there is a potential for the organization to provide specific financial burdens to or impose sp ecific financial obligations on the primary government. A primary government may also be financially accountable for government organizations that are fiscally dependent on the primary government. For example, an organization is fiscally dependent if it ca nnot adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City. In some instances, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete.

All of the City’s component units are considered to be blended component units. Although legally separate entities, blended component units are, in substance, part of the City's operations, so data from these units are reported with the primary government. A brief description of each component unit follows:

The City of Indian Wells Fire Access Maintenance District No. 1 (FAMD No. 1) was established in April 1973 to provide for the maintenance of access roads for fire and safety vehicles within the special district referred to as FAMD No. 1. Even though the FA MD No. 1 is a legally separate entity, it is reported as if it were part of the City because the City Council serves as the governing board. The primary government and the component unit have a financial benefit or burden relationship. Therefore, separate financial statements are not prepared for FAMD No.

1. The Housing Authority (Housing Authority) of the City of Indian Wells was established in February 2012 to assume the housing activities from the former Redevelopment Agency. The activity of the Housing Authority is reported in the Special Revenue Funds. Even though the Housing Authority is a legally separate entity, it is reported as if it were part of the City because the City Council, along with two appointed tenant commissioners, serves as the governing board of the Housing Authority. The primary government and the component unit also have a financial benefit or burden relationship. Therefore, separate financial statements are not prepared for the Housing Authority.

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City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies (continued)

Measurement Focus and Basis of Accounting

The basic financial statements of the City are composed of the following:

• Government-wide financial statements
• Fund financial statements
• Notes to the basic financial statements

Government-wide Financial Statements

Government-wide financial statements display information about the reporting government as a whole. These statements include separate columns for the governmental and business -type activities of the primary government (including its blended component units). All fiduciary activities are reported only in the fund financial statements.

Eliminations have been made in the statement of activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the City's various functions.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government -wide financial statements. The basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, re venues, expenses, gains, losses, assets, liabilities , and deferred outflows/inflows of resources resulting from the exchange and exchange -like transactions are recognized when the exchange occurs.

Program revenues include charges for services, special assessments, and payments made by parties outside the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Internally dedicated resources, taxes, and other items not adequately included in program revenues are reported as general revenues.

Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements rather than reported as expenditures. Long-term debt proceeds are recorded as a liability in the government-wide financial statements rather than as another financing source. Amounts paid to reduce the long-term indebtedness of the reporting government are reported as a reduction of the related liability rather than as expenditure.

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City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies (continued)

Fund Financial Statements:

The underlying accounting system of the City is organized and operated based on separate funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows (inflows), liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and how spending activities are controlled.

Fund financial statements for the primary government’s governmental funds are presented after the government- wide financial statements. These statements display information about major funds individually and other governmental funds in the aggregate for governmental funds.

Governmental Funds

In the fund financial statements, governmental funds are presented using the modified -accrual basis of accounting. Their revenues are recognized when they become measurable and available. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days.

Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non - exchange transactions are recognized as revenues in the period they wer e imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government -mandated and voluntary non -exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. Revenues, expenditures, gains, losses, assets, liabilities, and deferred inflows of resources resulting from non -exchange transactions are recognized in accordance with GASB Statement No. 33.

The fund financial statements present governmental funds using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets.

The reported fund balance (net cur rent resources) is considered to be a measure of "available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current resources . Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.

Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets despite their spending measurement focus. However, special reporting treatments indicate that they should not be considered "available spendable resources" since they do not represent current resources.

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City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies (continued)

Due to their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Therefore, since they do not affect current resources, long -term amounts are not recognized as governmental fund-type expenditures or liabilities.

Amounts to acquire capital assets are recorded as expenditures in the year that resources were expended rather than as fund assets. Long-term debt proceeds are recorded as other financing sources rather than a fund liability.

Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

When both restricted and unrestricted resources are combined in a fund, expenditures are considered to be paid first from restricted resources, and then from unrestricted resources.

Proprietary Funds

The City’s enterprise funds, and internal service funds are proprietary funds. The proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting.

Proprietary funds distinguish operating revenues and expenses from 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. The main operating revenues o f the enterprise funds and the government’s internal service funds are charged to customers for services. Operating expenses for the proprietary funds include the cost of services, administrative fees, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Fiduciary Funds

The private purpose trust fund is reported using the economic resources measurement focus and the accrual basis of accounting. Accordingly, the fiduciary fund is excluded from the government-wide financial statements.

Fund Classifications

The City reports the following major governmental funds:

The General Fund is the primary operating fund of the City. The General Fund accounts for revenue and expenditures traditionally associated with the government but is not legally required or by sound financial management to be accounted for in another fund. The revenues a nd expenditures are often referred to as discretionary, meaning they can be allocated as directed by the City Council. The fund's primary revenues are transit occupancy, property, and sales tax. Most of the City's administrative and operating costs, such as salaries, benefits, professional consultants, supplies, and charitable contributions, are paid out of the General Fund.

The Housing Authority Fund is used to account for the housing activity of the former Redevelopment Agency for the benefit of providing low- and moderate-income housing in Indian Wells. The Indian Wells Housing Authority was created to promote and encourage affordable housing units' retention, rehabilitation, and development. The fund’s revenue sources include investment income. Revenues are restricted by government code for funding housing units to benefit low- and moderate-income households. 41

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City of Indian Wells, California
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies (continued)

The Emergency Services Upgrade Fund is used to accumulate the resources from a special fire tax levied and restricted to enhance fire protection, suppression, fire prevention, fire investigation, fire safety education, and paramedic services.

The Indian Wells Financing Authority Fund was created in 2022 to account for the issuance and debt service payments for 2022 Solar and Infrastructure Lease Revenue Bonds.

The Capital Improvement Fund is used to account for the transfer of monies from the General Fund for the acquisition and construction of general governmental capital projects.

The City Streets Capital Reserve Fund establishes reserve funding for streets throughout the City. Funding allows for various maintenance projects to extend the city roadways' life. In addition, the City follows the Pavement Management Program (PMP) to identify street projects in slurry seal, overlay, and reconstruction.

The City reports the following major enterprise fund:

The Golf Resort Operations Fund accounts for the Indian Wells Golf Resort operations. Customer purchases received by the course will be used to support the day-to-day activities of the golf course.

The City's fund structure also includes the following fund types:

The Proprietary Fund - Internal Service Funds account for employee benefits activities and services performed for other departments within the City on a cost reimbursement basis.

The Fiduciary Fund - Private Purpose Trust Fund is used to account for the assets and liabilities of the former redevelopment agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.

Cash and Investments

Investments are reported in the accompanying balance sheet at fair value, except for specific certificates of deposit and investment contracts registered at cost. These investments are not transferable, and they have terms that are not affected by changes in market interest rates. Therefore, investment income includes interest earnings and the net increase (decrease) in the fair value of investments.

The City categorized the fair value measurements for its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

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Indian Wells City CouncilDecember 7, 2023

Indian Wells City Council
December 7, 2023