Agenda packet, regular meeting — Palm Desert City Council, February 15, 2024 (part 3 of 7)

CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED)
Debt service requirements to maturity are as follows:

E. Bond Reserve Requirements
At June 30, 2023, the fund balance reserve requirements and actual reserve balances were as follows:

NOTE 15: PRIOR PERIOD ADJUSTMENTS
During fiscal year 2023, the City determined that lease agreement between the City and the Corporation was not properly reported in the prior year. Therefore, lease receivable was understated by $2,581,437, deferred inflows of resources was understated by $2,565,426 and fund balance/net position was understated by $19,679 for the fiscal year ended June 30, 2022 in the General Fund and Governmental Activities. The lease payable was understated by $2,581,437, lease asset, net of amortization was understated by $2,565,426 and net position was overstated by $19,679 for the fiscal year ended June 30, 2022 in the Palm Desert Recreation Facility Corporation’s financial statements for the same purpose.

During fiscal year 2023, the City determined that due to bondholders in the Custodial Fiduciary Funds was not properly accrued. This was the result of a new interpretation obtained from GASB related to the implementation of GASB Statement No. 84, Fiduciary Funds. This resulted in a restatement of net position totaling $7,790,756 as of June 30, 2022.

Year Ending
June 30, Principal Interest Total
2024 305,000 $ 562,575 $ 867,575 $
2025 315,000 553,275 868,275
2026 325,000 543,675 868,675
2027 335,000 533,775 868,775
2028 345,000 523,575 868,575
2029-2033 1,880,000 2,452,300 4,332,300
2034-2038 2,245,000 2,072,500 4,317,500
2039-2043 2,730,000 1,576,400 4,306,400
2044-2048 3,310,000 974,600 4,284,600
2049-2052 3,165,000 259,500 3,424,500
Total 14,955,000 $ 10,052,175 $ 25,007,175 $
Requirement Actual
2003 Financing Authority Revenue Bonds $153,947 $165,720 CFD 2021-1 Special Tax Bonds, Series 2021 868,775 874,214 CFD 2005-1 Special Tax Bonds, Series 2021A 461,800 468,408 Section 29 Assessment District 2004-02
Limited Obligation Bonds Series 2021 1,411,600 1,416,853 80

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CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 16: FUND BALANCES
In the fund financial statements, reserves segregate portions of fund balances that are either not available or have been earmarked for specific purposes. The various reserves established as of June 30, 2023, were as follows:
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CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 17: CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS Construction Commitments
Primary Government
NOTE 18: SUCCESSOR AGENCY DISCLOSURES
Dissolution of Redevelopment Agency
Pursuant to AB X1 26 (adopted by the California Legislature in June 2011) and the State Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), all redevelopment agencies in the State were dissolved as of February 1, 2012. The City Council adopted Resolution No. 2011-76 on August 25, 2011, pursuant to Health and Safety Code (“HSC”) Section 34172, electing for the City to serve as the Successor Agency (‘SARDA”) to the former Palm Desert Redevelopment Agency (the “Dissolved RDA”). SARDA is tasked with the wind-down of the Dissolved RDA’s affairs. Certain SARDA actions must first be approved by an oversight board, composed of seven-members representing taxing entities.

HSC Section 34173(g) expressly provides that SARDA is a separate public entity from the City, and the liabilities and assets of the Dissolved RDA shall not be transferred to the City.

Pursuant to HSC Section 34176, the City Council adopted Resolution No. 2012-07, on February 9, 2012, electing to have the Palm Desert Housing Authority to serve as the Housing Successor. The Housing Authority (as the Housing Successor) submitted to the State Department of Finance (“DOF”) a list of housing assets to be transferred by SARDA to the Housing Successor. On August 31, 2012, the DOF issued a letter indicating that the DOF had no objection to such housing asset list.

The housing assets (per the housing asset list), obligations, and activities of the Dissolved RDA were transferred to the Housing Successor and are reported in the Housing Asset Fund beginning in fiscal year 2011-12.

However, outstanding bonds (“Housing Bonds”), secured by a pledge of moneys which would have been deposited into the Dissolved RDA’s low and moderate income housing fund (known as the “Housing Set Aside”), remain as 82

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CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
the SARDA’s enforceable obligations. See also “Stipulated Judgment” below. All other assets, obligations, and activities of the Dissolved RDA have been transferred and are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. The County Auditor-Controller (“CAC”) has established a Redevelopment Property Tax Trust Fund (the “RPTTF”) for SARDA and is charged with depositing into the RPTTF the amount of property taxes that would have been redevelopment property tax increment had the Dissolved RDA not been dissolved.

SARDA is required to prepare an annual recognized obligation payment schedule (the “ROPS”) setting forth the amounts due for enforceable obligations from each July 1 through the following June 30. The CAC only makes payments to the SARDA from the RPTTF based on the ROPS amounts approved by the oversight board and the DOF.

During fiscal year 2012-13, SARDA was required to conduct due diligence reviews of the low and moderate income housing fund and all other funds to compute the funds (cash) which were not needed to be retained to pay existing enforceable obligations or otherwise unrestricted, and therefore, must be remitted to the CAC. SARDA paid a total amount of $40,988,399 to the CAC based on the due diligence reviews per the DOF’s determination.

The DOF issued a Finding of Completion on May 15, 2013 after SARDA remitted such payments.

The Finding of Completion allows the placement of certain loans (“Advances”) made by the City to the Dissolved RDA (which were previously voided by operation of law upon the Dissolved RDA’s dissolution) on the ROPS. For each approved repayment 20% of the repayment amount must be allocated to the Housing Asset Fund. The repayment of the Advances, pursuant to the oversight board’s and the DOF’s approval, began during fiscal year 2019-20. During fiscal year 2022-23, the City received a final determination from the California Department of Finance that these advances would not be deemed an enforceable obligation. There is no financial statement impact as these balances were offset by an allowance for doubtful accounts in previous years.

The California State Controller was directed to review the propriety of any transfers of assets between the Dissolved RDA and other public bodies that occurred after January 1, 2011. The State Controller completed its review on March 14, 2013 and did not identify any unallowable transfers of assets that occurred between the Dissolved RDA and the City or other public agencies.

SARDA’s use and disposition of all real properties held (Long Range Property Management Plan (“LRPMP”), was approved by the DOF on June 2, 2014. The LRPMP allowed the SARDA to transfer property used for government purposes with a cost basis of $6,390,263 to the City.

Stipulated Judgment
On May 15, 1991, the Riverside County Superior Court entered a final judgment incorporating the terms of a Stipulation for Entry of Judgment (“Original Stipulation”) in Case No. 51124 and a Stipulation for Entry of Judgment pursuant to Settlement Agreement and Mutual Release (“Settlement Agreement”) in Case No. 51124, among the Dissolved RDA, the City, the Western Center on Law and Poverty, Inc., California Rural Legal Assistance, and others. On June 18, 1997 and on September 20, 2002, the Riverside County Superior Court amended the judgment, incorporating Stipulations Amending Stipulation for Entry of Judgment.

The judgment, as amended (the “Judgment”), generally required the Dissolved RDA to use 20% of its tax increment revenues, and additional tax increment revenues if necessary, to develop, rehabilitate, or otherwise financially assist affordable housing units and to meet certain housing needs of the City. Before dissolution, the Dissolved RDA used its Housing Set-Aside to fulfill its obligations under the Judgment (including the payment of debt service on the Housing Bonds issued to finance and refinance affordable housing projects that satisfied the requirements of both the Judgment and the relevant Redevelopment Law provisions). While the low and moderate income housing fund and the requirement to deposit the Housing Set-Aside into such fund have been eliminated upon the Dissolved RDA’s dissolution, SARDA continues to recognize the Judgment as its enforceable obligation. On its 83

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CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
ROPS, the SARDA has included line items designated as “Stipulation Judgment Case No. 51124,” listing the amounts necessary to fulfill its obligations under the Judgment (after taking into account the amounts already listed for the repayment of the Housing Bonds). While the DOF originally approved such line items, the DOF changed its position beginning with ROPS 14-15A (i.e., covering the period commencing July 1, 2014).

On August 14, 2014, SARDA filed an action, SARDA to the Palm Desert Redevelopment Agency v. Michael Cohen, Sacramento Superior Court Case No. 34-2014-00167698 (the “Successor Agency Lawsuit”), seeking to compel the DOF to permit payment of the affordable housing obligations mandated by the Judgment. Subsequently, in view of the fact that there were similar cases pending in the California Court of Appeal (Third District), the SARDA voluntarily dismissed its action without prejudice pending resolution of those other cases. To date, none of the other cases has resulted in a decision that would compel the DOF to permit payment of the obligations under the Judgment as an enforceable obligation.

The assets and liabilities of the Dissolved RDA (except for those transferred to the Housing Successor and reported in the Housing Asset Fund) have been transferred to the SARDA. The SARDA is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to these transactions are as follows:

Capital Assets
During the year ending June 30, 2023, the SARDA sold land with a cost basis of $6,682,705 for a sales price of $12,167,792. These proceeds are required to be remitted to the County of Riverside for distribution to the taxing entities in accordance with the Health and Safety Code. As of June 30, 2023, $7,660,205 has been remitted to the County of Riverside and the remaining $4,507,587 has been accrued in Due to Other Governments for distribution in Fiscal Year 2023-2024.

Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2023, was as follows:’ The tax allocation revenues bonds issued before 2011 (i.e., before the dissolution of the Dissolved RDA) were issued by the Palm Desert Financing Authority, the proceeds of which were loaned to the Dissolved RDA for financing or refinancing redevelopment projects. Pursuant to the bond documents, the Authority’s bonds were Balance Balance
July 1, 2022 Additions Deletions June 30, 2023
Capital assets, not being depreciated:

Land $ 23,909,102 $ - $ (6,682,705) $ 17,226,397
Total capital assets, not being depreciated 23,909,102 - (6,682,705) 17,226,397 Total fuduciary fund capital assets 23,909,102 $ $ - $ (6,682,705) $ 17,226,397 Amount
Balance Balance Due Within
July 1, 2022 Additions Deletions June 30, 2023 One Year 2003 TARBs, $15,745,000 15,745,000 $ - $ - $ $ 15,745,000 $ 875,000 2017 A TARBs, $52,390,000 39,600,000 - 3,195,000 36,405,000 715,000 2017 B TARBs, $140,130,000 105,750,000 - 9,405,000 96,345,000 11,675,000 2017 H-A TARBs, $7,365,000 5,455,000 - 430,000 5,025,000 455,000 2017 H-B TARBs, $45,815,000 12,210,000 - 6,015,000 6,195,000 6,195,000 Subtotal 178,760,000 - 19,045,000 159, 715,000 19,915,000 Add: Unamortized bond premium 5,363,049 723,806 4,639,243 - Less: Unamortized bond discount (1,602,609) - (134,731) (1,467,878) - Total $ 182,520,440 $ 19,634,075 - $ $ 162,886,365 $ 19,915,000 84

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CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
secured by the Dissolved RDA’s (and after dissolution, are secured by the Successor Agency’s) repayment of the loans were secured by tax increment (after the Dissolved RDA’s dissolution, are secured by certain moneys deposited in the RPTTF, see Notes 19) and other funds as provided in the bond documents.

In January 2017, the Successor Agency issued four series of bonds: (i) the Tax Allocation Refunding Bonds, 2017 Series A, in the aggregate principal amount of $52,390,000 (the “2017A Bonds”), (ii) the Taxable Tax Allocation Refunding Bonds, 2017 Series B, in the aggregate principal amount of $140,130,000 (the “2017B Bonds”), (iii) the Tax Allocation Refunding Bonds, 2017 Series H-A, in the aggregate principal amount of $7,365,000 (the “2017H-A Bonds”); and (iv) the Taxable Tax Allocation Refunding Bonds, 2017 Series H-B, in the aggregate principal amount of $45,815,000 (the “2017H-B Bonds”). As further described below, the 2017 refunding refunded all of the outstanding tax allocation revenue bonds, except for the Project Area No. 2 2003 Bonds.

None of these bonds or any interest thereon are a debt of the City, the State of California or any of its political subdivisions (except for the Successor Agency), and none the City, the State of California nor any of its political subdivisions (except for the Successor Agency) is liable on the bonds, nor in any event shall the bonds and interest thereon be payable out of any funds or properties other than those provided under the respective bond documents.

The remaining outstanding Project Area No. 2 2003 Bonds were insured by MBIA Insurance Corporation (“MBIA”).

On February 18, 2009, MBIA announced the restructuring of its financial guaranty insurance operations into two separately capitalized sister companies, with one entity (MBIA Illinois) assuming the risk associated with its U.S. municipal exposures, and the other (MBIA Corp) insuring the remainder of the portfolio. Effective March 19, 2009, MBIA Illinois was renamed National Public Finance Guarantee Corporation (“NPFGC”).

Some (but not all) of the maturities of each series of the 2017 Bonds are insured by Build America Mutual Assurance Company.
2003 Series Tax Allocation Revenue Bonds (Project Area No. 2) On March 26, 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax Allocation Revenue Bonds (Project Area No. 2) 2003 Series. The Palm Desert Financing Authority loaned the bond proceeds to the Dissolved RDA to fund various redevelopment capital projects in Project Area No. 2. Interest rates on the bonds vary from

4.5% to 5.0% per annum payable semi-annually on February 1 and August 1, with principal maturing as follows:

The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project Area No. 2) are as follows:
2017 Series A Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017A Bonds, in the principal amount of $52,390,000. The proceeds from the 2017A Bonds were utilized to refund the Project Area No. 1 2002A Bonds, Project Area No. 1 2003 Bond, Project Area No. 1 2004 Bonds, the Project Area No. 2 2002A Bonds, and the Project Area No. 4 1998 Bonds and pay certain costs associated with the issuance of the bonds.

Year Ending
June 30, Principal Interest Total
2024 875,000 $ 749,319 $ 1,624,319 $
2025 910,000 709,156 1,619,156
2026 1,145,000 662,203 1,807,203
2027 1,340,000 604,738 1,944,738
2028 1,405,000 538,625 1,943,625
2029-2033 8,175,000 1,536,875 9,711,875
2034 1,895,000 47,375 1,942,375
Total 15,745,000 $ $ 4,848,291 $ 20,593,291
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CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Interest rates on the bonds vary from 2.00% to 5.00% per annum payable semi-annually on April 1 and October 1, commencing April 1, 2017, with principal maturing annually on October 1. As of June 30, 2023, the outstanding principal balance on the bonds $36,405,000.

The future debt service requirements on the 2017A Bonds are as follows:
2017 Series B Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017B Bonds, in the principal amount of $140,130,000.

The proceeds from the 2017B Bonds were utilized refund the Project Area No. 1 2006A Bonds, the Project Area No. 2 2006A Bonds, the Project Area No. 2 2006D Bonds, the Project Area No. 3 2003 Bonds, the Project No. 3 2006A Bonds, the Project Area No. 3 2006B Bonds, the Project Area No. 3 2006C Bonds, the Project Area No. 4 2001 Bonds, the Project Area No. 4 2006A Bonds, and the Project Area No. 4 2006B Bonds and pay certain costs associated with the issuance of the bonds.

Interest rates on the bonds vary from 1.25% to 4.25% per annum payable semi-annually on April 1 and October 1, commencing April 1, 2017, with principal maturing annually on October 1. As of June 30, 2023, the outstanding principal balance on the bonds is $96,345,000.

The future debt service requirements on the 2017B Bonds are as follows:
2017 Series H-A Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017H-A Bonds, in the principal amount of $7,365,000.

The proceeds from the 2017H-A Bonds were used to refund the 2002 Housing Bonds and pay certain costs associated with the issuance of the bonds.

Year Ending
June 30, Principal Interest Total
2024 715,000 $ 1, $ 2,517,375 802,375 $
2025 6,630,000 1, 8,248,750 618,750
2026 6,910,000 1, 8,190,250 280,250
2027 5,245,000 6,221,375 976,375
2028 5,495,000 6,202,875 707,875
2029-2031 11,410,000 12,251,250 841,250
Total 36,405,000 $ 7,226,875 $ 43,631,875 $
Year Ending
June 30, Principal Interest Total
2024 11,675,000 $ 3,422,400 $ 15,097,400 $
2025 5,585,000 3, 8,745,009 160,009
2026 5,710,000 2, 8,689,956 979,956
2027 8,060,000 2, 10,811,156 751,156
2028 4,790,000 2, 7,321,319 531,319
2029-2033 30,135,000 9, 39,668,322 533,322
2034-2038 27,755,000 2, 30,538,431 783,431
2039-2042 2,635,000 2,864,606 229,606
Total 96,345,000 $ 27,391,199 $ 123,736,199 $
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The future debt service requirements on the 2017 Series H-A Tax Allocation Refunding Bonds are as follows:
2017 Series H-B Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017H-B Bonds, in the principal amount of $45,815,000.

The proceeds from the 2017 H-B Bonds were used to refund the 2007 Housing Bond and pay certain costs associated with the issuance of the bonds.

Interest rates on the bonds vary from 1.25% to 3.00% per annum payable semi-annually on April 1 and October 1, commencing April 1, 2017, with principal maturing annually on October 1. As of June 30, 2023, the outstanding principal balance on the bonds is $6,195,000.

The future debt service requirements on the 2017H-B Bonds are as follows:

NOTE 19: SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through January 30, 2024, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2023, that required recognition or disclosure in these financial statements.

Year Ending
June 30, Principal Interest Total
2024 455,000 $ 216,144 $ 671,144 $
2025 475,000 192,894 667,894
2026 505,000 168,394 673,394
2027 525,000 142,644 667,644
2028 555,000 115,644 670,644
2029-2033 2,510,000 186,784 2,696,784
Total $ 5,025,000 $ 1,022,504 $ 6,047,504
Year Ending
June 30, Principal Interest Total
2024 $ 6,195,000 $ 92,925 $ 6,287,925
Total $ 6,195,000 $ 92,925 $ 6,287,925
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CITY OF PALM DESERT
Miscellaneous Plan - Agent Multiple-Employer
Schedule of Changes in Net Pension Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years (1)
2015 2016 2017 2018

TOTAL PENSION LIABILITY
Service Cost $ 2,125,437 2,156,598 $ 2,076,964 $ 2,204,265 $ Interest 8,223,320 7,991,591 8,327,823 8,558,529
Difference between Expected and Actual Experience - (2,378,254) (4,259,317) (1,895,482) Changes in Assumptions - (2,091,348) - 7,367,723
Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) Net Change in Total Pension Liability 1,282,130 5,298,869 1,344,218 10,833,504 Total Pension Liability - Beginning 107,900,900 113,199,769 114,481,899 115,826,117 Total Pension Liability - Ending (a) 113,199,769 $ 114,481,899 $ 115,826,117 $ 126,659,621 $

PLAN FIDUCIARY NET POSITION
Contributions - Employer 3,320,450 $ 4,065,411 $ 4,257,322 $ 5,303,371 $ Contributions - Employee 995,504 878,171 870,981 828,467 Net Investment Income 11,290,314 1,682,498 448,184 8,800,663 Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) Administrative Expense - (87,279) (47,263) (115,573)
Net Plan to Plan Resource Movement - - - -
Other Miscellaneous Income/(Expense) - - - -
Net Change in Fiduciary Net Position 10,756,948 1,941,776 727,972 9,415,397 Plan Fiduciary Net Position - Beginning 64,851,550 75,608,498 77,550,274 78,278,246 Plan Fiduciary Net Position - Ending (b) $ 75,608,498 $ 77,550,274 $ 78,278,246 $ 87,693,643 Plan Net Pension Liability/(Assets) - Ending (a) - (b) $ 37,591,271 $ 36,931,625 $ 37,547,871 $ 38,965,978

66.79% 67.74% 67.58% 69.24%
Covered Payroll $ 11,110,759 $ 11,448,621 $ 11,342,713 $ 10,684,238 338.33% 322.59% 331.03% 364.71%
Notes to Schedule:

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown.

Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: None in 2020-2022. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from

7.65% to 7.15%. In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2015, amounts reported were based on the 7.50% discount rate. 88

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2019 2020 2021 2022 2023
$ 2,196,462 $ 1,973,971 $ 2,086,683 $ 2,042,043 $ 1,976,289 8,797,867 9,261,660 9,645,145 10,005,168 10,122,299
(594,882) 1,762,387 533,373 116,967 (2,563,805)
(1,148,708) - - 4,699,855 -
(5,934,338) (6,383,377) (6,540,485) (7,041,890) (7,723,744) 3,316,401 6,614,641 5,724,716 5,122,288 6,510,894
126,659,621 129,976,022 136,590,663 142,315,379 147,437,667 $ 129,976,022 $ 136,590,663 $ 142,315,379 $ 147,437,667 $ 153,948,561 $ 5,407,412 $ 5,963,737 $ 4,521,813 $ 4,729,858 $ 4,020,131 812,447 791,794 805,528 745,959 791,130
7,555,653 6,322,815 5,102,524 24,010,711 (9,592,025)
(5,934,338) (6,383,377) (6,540,485) (7,041,890) (7,723,744) (136,651) (67,893) (143,465) (105,400) (79,643)
(222) - - - -
(259,502) 222 - - -
7,444,799 6,627,298 3,745,915 22,339,238 (12,584,151)
87,693,643 95,138,442 101,765,740 105,511,655 127,850,893 $ 95,138,442 $ 101,765,740 $ 105,511,655 $ 127,850,893 $ 115,266,742 $ 34,837,580 $ 34,824,923 $ 36,803,724 $ 19,586,774 $ 38,681,819

73.20% 74.50% 74.14% 86.72% 74.87%
$ 10,751,687 $ 9,807,088 $ 10,353,849 $ 10,386,791 $ 9,621,662 324.02% 355.10% 355.46% 188.57% 402.03%
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CITY OF PALM DESERT
Miscellaneous Plan - Agent Multiple-Employer
Schedule of Plan Contributions
As of June 30, For the Last Ten Fiscal Years (1)
2015 2016 2017 2018
Actuarially Determined Contribution $ 3,393,171 $ 3,585,082 $ 3,550,127 $ 4,219,764 Contribution in Relation to the Actuarially Determined Contribution (4,065,411) (4,257,322) (5,303,371) (5,396,908) Contribution Deficiency (Excess) $ (672,240) $ (672,240) $ (1,753,244) $ (1,177,144) Covered Payroll $ 11,448,621 $ 11,342,713 $ 10,684,238 $ 10,751,687 Contributions as a Percentage of Covered Payroll 35.51% 37.53% 49.64% 50.20% Note to Schedule:

Valuation Date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth
Investment rate of return
Retirement age
Mortality

6.9% net of pension investment and administrative expenses, including The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using the 90% scale MP 2016 published by the Society of (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown.

June 30, 2021

2.750%
Varies by entry age and service

2.300%
Market value
Level percentage of payroll, closed
Entry age normal
See Notes to Required Supplementary Information.
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2019 2020 2021 2022 2023
$ 4,225,204 $ 4,736,668 $ 4,936,652 $ 4,123,142 $ 4,574,753 (5,963,737) (4,521,813) (4,729,797) (4,123,142) (4,574,753) $ (1,738,533) $ 214,855 $ 206,855 $ - $ -
$ 9,807,088 $ 10,353,849 $ 10,386,791 $ 9,621,662 $ 10,601,359

60.81% 43.67% 45.54% 42.85% 43.15%
See Notes to Required Supplementary Information.
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CITY OF PALM DESERT
Schedule of Changes in the Net OPEB Liability/(Asset)
and Related Ratios
As of June 30, for the Last Ten Fiscal Years (1)
2018 2019 2020
Total OPEB Liability
Service cost $ 346,417 $ 357,675 $ 369,299
Interest on the total OPEB liability 1,144,106 1,199,747 1,256,431 Differences between expected and actual experience - - (4,066,457) Changes in assumptions - - 2,552,767
Changes in benefit terms - - -
Benefit payments (653,187) (696,845) (756,759)
Net change in total OPEB liability 860,577 837,336 (644,719) Total OPEB liability - beginning 16,980,271 17,817,607 18,678,184 Total OPEB liability - ending (a) $ 17,817,607 $ 18,678,184 $ 18,033,465 Plan Fiduciary Net Position
Contribution - employer $ 1,255,960 $ 1,381,501 $ 2,408,260 Net investment income 902,331 843,319 1,226,966
Benefit payments (653,187) (696,845) (756,759)
Administrative expense (6,541) (7,371) (3,515)
Other Expenses - (18,115) -
Net change in plan fiduciary net position 1,498,563 1,502,489 2,874,952 Plan fiduciary net position - beginning 13,697,023 12,198,460 15,199,512 Plan fiduciary net position - ending (b) 15,199,512 13,697,023 18,074,464 Net OPEB Liability/(Asset) - ending (a) - (b) $ 3,478,672 4,120,584 $ (40,999) $ Plan fiduciary net position as a percentage
of the total OPEB liability/(asset) 76.87% 81.38% 100.23% Covered-Employee payroll $ 10,741,786 $ 10,546,052 $ 11,382,103 Net OPEB liability/(asset) as a percentage
of covered-employee payroll 38.36% 32.99% -0.36%
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

See Notes to Required Supplementary Information.
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2021 2022 2023
$ 366,971 $ 378,897 $ 294,337
1,117,500 1,161,531 1,205,943
- - -
1,053,761 - 1,691,792
(910,834) - -
(752,486) (819,968) (944,960)
731,985 863,387 2,247,112
18,033,465 18,765,450 19,628,837
$ 18,765,450 $ 19,628,837 $ 21,875,949
$ 1,280,453 $ 1,140,548 $ 1,230,895
977,487 3,878,532 (3,022,583)
(752,486) (819,968) (944,960)
(9,045) (7,193) (6,034)
- - -
1,496,409 4,191,919 (2,742,682)
18,074,464 19,570,873 23,762,792
19,570,873 23,762,792 21,020,110
$ (805,423) $ (4,133,955) $ 855,839
104.29% 121.06% 96.09%
$ 10,881,697 $ 11,208,147 $ 12,780,729
-7.40% -36.88% 6.70%
See Notes to Required Supplementary Information.
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CITY OF PALM DESERT
Schedule of Plan Contributions - OPEB
As of June 30, for the Last Ten Fiscal Years (1)
2018 2019 2020
$ 455,021 520,620 $ 348,915 $
(2,211,778) (1,217,465) (1,280,453)
$ (1,756,757) (696,845) $ (931,538) $
$ 10,546,052 10,741,786 $ 11,382,103 $

11.33% 20.97% 11.25%
Notes to Schedule:

Methods and assumptions used to determine contributions:

Actuarial Cost Method
Amortization Valuation Method/Period
Asset Valuation Method Market Value
Inflation 2.50%
Payroll Growth
Investment Rate of Return 5.50% per
Healthcare cost-trend rates
Retirement Age
Mortality
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation.

Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess)
Covered-Employee payroll
Contributions as a percentage of covered-employee payroll Entry Age Normal
Level percent of payroll over

3.00% per annum, in aggregate
Assumed to start at 6.5% and grade down by 0.5% each year to 5% in 2024
The City offers the same plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverages under PEMHCA.

Mortality rates used were those published by CalPERS under the 2017 Experience study and projected using the MacLeod Watts Scale 2018 applied generationally.
94

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2021 2022 2023
$ 320,508 $ 994,088 $ 452,627
(1,140,548) (994,088) (1,108,988)
$ (820,040) $ (656,361) - $
$ 10,881,697 $ 11,208,147 $ 12,780,729

10.48% 8.87% 8.68%
95

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CITY OF PALM DESERT
Budgetary Comparison Schedule by Department
General Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated $ 119,900,532 $ 119,900,532 $ 119,900,532 $ - Resources (Inflows):

Taxes
Property taxes 7,230,029 7,230,029 7,918,559 688,530
Property transfer tax 774, 774,000 934, 000 735 160,735 Property tax in lieu 4,800,000 4, 5, 800,000 233, 033,448 448 Timeshare mitigation fee 1,584,000 1, 1, 584,000 127, 711,324 324 Sales tax 25,673,460 25,673,460 26,354,774 681, 314
Business license tax 1, 1,200,000 1, 200,000 ( 139,514 60,486) Job valuation fees 32,947 32,947 45,187 12,240
Transient occupancy tax 17,815,000 17,815,000 23,825,410 6, 010,410 Franchises 3,150,000 3, 3, 150,000 424, 574,273 273
Penalties and interest on taxes 20,000 20,000 185,219 165,219 Total Taxes 62,279,436 62,279,436 70,722,443 8, 443,007 Licenses and Permits
Building permits 900,000 1, 2, 500,000 775, 275,257 257 Grading permits 25,000 25,000 15,717 (9 ,283)
Encroachment permits 40,000 226, 200,000 26,113 113
Miscellaneous permits - - 530 530
Business regulatory permits 22,500 22,500 19,388 (3,112) Golf cart permits 945 945 2,380 1,435
Valet parking permits 550 550 75 (475)
Total Licenses and Permits 988,995 1,748,995 2,539,460 790,465 Intergovernmental
State mandate cost - - 94,795 94,795
Motor vehicle in-lieu fees 24,000 24,000 52,162 28,162
Monthly parking bail 10,000 10,000 4,332 (5,668)
Reimbursement RDA costs 700,000 700,000 1,052,201 352,201 Other reimbursements 626,500 626,500 412,029 (214,471)
Total Intergovernmental 1,360,500 1,360,500 1,615,519 255,019 Rental Income 155,000 155,000 138,649 (16,351)
Charges for Services
Subdivision fees 500,000 500,000 451,094 (48,906)
Zoning fees 40,000 40,000 52,200 12,200
Plan check fees 335,500 600,000 644,448 44,448
Sale of maps and publications 5,000 5,000 8,210 3,210
Microfilm fees 500 500 199 (301)
Vehicle impact fee 625,000 625,000 595,493 (29,507)
Other fees 135,450 135,450 167,222 31,772
Total Charges for Services 1,641,450 1,905,950 1,918,866 12,916 Investment Earnings
Interest income 450,000 450,000 4,853,178 4,403,178
Interest on notes receivable 200,000 200,000 172,356 (27,644) Total Investment Earnings 650,000 650,000 5,025,534 4,375,534 Fines and Forfeitures
Vehicle code fines 35,000 35,000 22,197 (12,803)
Municipal court fines 25,000 25,000 7,789 (17,211)
VICR fees 75,000 75,000 89,716 14,716
Total Fines and Forfeitures 135,000 135,000 119,702 (15,298) Miscellaneous
Code compliance 150,000 150,000 152,450 2,450
Certificate of compliance fee 500 500 200 (300)
Nuisance abatement tax 20,000 20,000 3,511 (16,489)
Abandoned vehicle abatement 38,000 38,000 69,162 31,162 Other revenue 157,000 267,000 343,233 76,233
Total Miscellaneous 365,500 475,500 568,556 93,056
Transfers In 3,604,700 3,075,963 2,478,731 (597,232)
Amounts Available for Appropriations 191,081,113 191,686,876 206,009,835 14,322,959 Year Ended June 30, 2023
See Notes to Required Supplementary Information.
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CITY OF PALM DESERT
Budgetary Comparison Schedule by Department
General Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Year Ended June 30, 2023
Charges to Appropriation (Outflow):

General Government
City Council 291,198 344,078 246,156 97,922
City Clerk 886,160 1,047,726 941,796 105,930
Legislative Advocacy 39,655 39,655 36,000 3,655
Elections 326,500 405, 405, 491 (83) 574
City Attorney 304, 304,337 296, 337 7,349 988
Legal Special Services 309,986 409, 452, 986 ( 317 42,331) City Manager 1, 1,184,119 1, 179,950 102, 077,518 432
Community Services - - 80,042 ( 80,042)
Finance 2,114,050 2, 2, 459,750 418, 041,090 660
Independent Audit 90,000 145, 117,000 ( 036 28,036)
Human Resources 798,160 1, 835, 282,478 145 447,333
General Services 7,244,134 4, 4, 738,486 456, 281,784 702 Information Technology 2, 2,319,961 2, 672,246 352, 319,470 776 Unemployment Insurance 10,000 10,000 138 9,862
Insurance 1,124,000 1, 1, 124,000 94,814 029,186
Contributions to Other Agencies 628,500 781, 773, 500 7,611 889 Community Promotions 1,189,500 1, 1, 332,200 ( 347,204 15,004) Marketing 1,818,030 2, 1, 025,980 502, 523,041 939
Visitors Information Center 12,930 12,930 27,166 ( 14,236) Economic Development Center 2, 993,200 1, 422,575 1, 413,836 008,739 Planning & Community Development 1,932,950 1, 2, 909,657 ( 057,343 147,686) Total General Government 23,617,370 24,620,025 21,330,719 3, 289,306 Public Safety
Police Services 20,976,865 20,976,865 20,403,994 572,871 Animal Regulation 336,977 336,977 409,231 (72,254)
Traffic Safety 1, 1,171,900 915, 189,250 244 274,006
Building and Safety 1, 1,483,239 1, 736,125 370, 366,067 058 Community Safety 785, 435,000 210, 000 021 574,979
Total Public Safety 25,024,217 24,403,981 23,304,557 1, 719,660 Parks, Recreation, and Culture
Civic Center Park 1,752,200 1, 1, 739,592 65,345 674,247 Park Maintenance 1,196,000 1, 1, 277,088 171, 106,087 001 Landscaping Service 2,729,305 2, 2, 994,874 301, 693,153 721 Civic Center Park - Improvement 145,000 145, 88,512 000 56,488 Total Parks, Recreation and Culture 5,822,505 6, 5, 156,554 594, 561,999 555 Public Works
Administration 3,056,050 3, 3, 144,625 117, 026,733 892 Street Maintenance 2,066,250 2, 2, 290,900 134, 156,583 317 Street Resurfacing 300,000 300, - 000 300,000
Curb & Gutter 25,000 25,000 14,980 10,020
Parking Lot 440,000 223, - 000 223,000
Corporate Yard 158,000 220, 189, 500 30,951 549
Auto Fleet / Equipment 299,000 396, 328, 000 67,883 117 Public Bldg - Opr/Maint. 895,000 1, 998, 088,400 89,823 577 Portola Community Center 182, 192,000 164, 000 17,337 663 Total Public Works 7,431,300 7, 6, 870,425 991, 879,202 223 Capital Outlay 175, 162,000 685, 500 ( 071 509,571)
Debt service: -
Principal retirement - - ( 129,574 129,574)
Interest and fiscal charges - - 4,498 (4 ,498)
Transfers Out 8,106,823 25, 24,813,041 018,281 205, 240 Contribution to Other Government - - ( 834,654 834,654) Total Charges to Appropriations 71,176,429 90,502,802 85,093,323 5, 409,479 Budgetary Fund Balance, June 30 119,904,684 $ 101,184,074 $ 120,916,512 $ 19,732,438 $ See Notes to Required Supplementary Information.
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CITY OF PALM DESERT
Budgetary Comparison Schedule
Prop A Fire Tax
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 12,682,312 $ 12,682,312 $ 12,682,312 $ - Resources (Inflows):

Taxes 7,000,000 7,000,000 9,169,242 2,169,242
Assessments 2,200,000 2,200,000 2,138,587 (61,413)
Intergovernmental 1,100,000 1,100,000 1,457,526 357,526 Charges for services 2,400,000 2,400,000 3,100,323 700,323 Investment earnings 20,000 20,000 222,043 202,043
Transfers in 4,600,000 4,600,000 4,600,000 -
Amounts Available for Appropriations 30,002,312 30,002,312 33,370,033 3,367,721 Charges to Appropriation (Outflow):

Public safety 17,057,875 18,185,785 16,970,960 1,214,825 Capital outlay t 638,400 1,751,820 660,442 1,091,378
Total Charges to Appropriations 17,696,275 19,937,605 17,631,402 2,306,203 Budgetary Fund Balance, June 30 $ 12,306,037 $ 10,064,707 $ 15,738,631 $ 5,673,924 Year ended June 30, 2023
See Notes to Required Supplementary Information.
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CITY OF PALM DESERT
Budgetary Comparison Schedule
Housing Asset Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 48,603,279 $ 48,603,279 $ 48,603,279 $ - $ Resources (Inflows):

Investment earnings 95,000 95,000 1,554,962 1,459,962
Miscellaneous - - 38,780 38,780
Proceeds from sale of capital asset - - 293,804 293,804 Amounts Available for Appropriations 48,698,279 48,698,279 50,490,825 1,792,546 Charges to Appropriation (Outflow):

Housing and redevelopment 423,650 7,758,650 419,870 7,338,780 Capital outlay 300,000 200,000 56,074 143,926
Total Charges to Appropriations 723,650 7,958,650 475,944 7,482,706 Budgetary Fund Balance, June 30 47,974,629 $ 40,739,629 $ 50,014,881 $ 9,275,252 $ Year ended June 30, 2023
See Notes to Required Supplementary Information.
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CITY OF PALM DESERT
Budgetary Comparison Schedule
Housing Authority
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 19,125,056 $ 19,125,056 $ 19,125,056 $ - $ Resources (Inflows):

Rental income 8,028,316 8,028,316 8,737,330 709,014
Investment earnings 20,000 20,000 685,559 665,559
Amounts Available for Appropriations 27,173,372 27,173,372 28,547,945 1,374,573 Charges to Appropriation (Outflow):

Housing and redevelopment # d 11,435,247 9,659,554 8,874,525 2,560,722 Transfers out 446,400 439,500 415,990 23,510
Total Charges to Appropriations 10,105,954 11,874,747 9,290,515 2,584,232 Budgetary Fund Balance, June 30 17,067,418 $ 15,298,625 $ 19,257,430 $ 3,958,805 $ Year ended June 30, 2023
See Notes to Required Supplementary Information.
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CITY OF PALM DESERT
Notes To Required Supplementary Information
June 30, 2023

BUDGETS AND BUDGETARY ACCOUNTING
The City used the following procedures in establishing the budgetary data reported in the financial statements:

1. Before the beginning of the fiscal year, the City Manager submits to the City Council a proposed budget for the year commencing the following July 1.

2. Public hearings are conducted to obtain taxpayer comments.

3. The budget is subsequently adopted through passage of a resolution.

4. Expenditures for the General Fund cannot exceed amounts budgeted at the departmental level, which is the legal level of control. For other funds, expenditures cannot exceed the total amount budgeted for each fund, which is the legal level of control.

The City Manager is authorized to transfer appropriations (without council approval) between an object of a General Fund Department and authority to adjust intra-and outer departmental budgeted line items, as well as inter-fund transfers, provided such adjustments do not exceed the total approved budget. The City Council approves all other changes. Annual appropriation amounts lapse at year-end.

5. Encumbrances and continuing appropriations are rebudgeted as of July 1, by Council action.

6. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except for certain special revenue funds and capital projects funds, which adopt project length budgets and debt service funds that are not budgeted as effective budgetary control is achieved through debt indenture provisions. The following funds did not have legally adopted budgets during the current fiscal year:

Other Governmental Funds
Library
Assessment District No. 94-3 Merano
Silver Spur Ranch
Highlands Undergrounding
CFD University Special Assessment
Assessment 29
University Park
National Opioid Settlement
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OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENTS
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CITY OF PALM DESERT
Combining Balance Sheet
Other Governmental Funds
Assets:

Pooled cash and investments 51,964,406 $ 33,652,432 $ 120,692 $ 85,737,530 $ Receivables:

Accounts 902,488 - - 902,488
Assessments 4,481 1,076,523 - 1,081,004
Loans 1,221,675 - 1,221,675 -
Interest 49,251 - - 49,251
Prepaid costs 16,968 17,119 - 34,087
Deposits - 20,000 - 20,000
Due from other governments 1,477,045 - 4,375 1,481,420
Advances to other funds 3,179,888 - 3,179,888 -
Inventories 17,570 - - 17,570
Total Assets $ 55,653,884 $ 36,869,439 $ 1,201,590 $ 93,724,913 Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ 2,637,568 $ 2,585,705 $ 5,223,273 - $ Accrued liabilities 14,520 - - 14,520
Unearned revenues 280,834 251,273 - 532,107
Deposits payable 3,780 - - 3,780
Due to other funds 1,136,962 - 1,136,962 -
Advances from other funds 956,000 - - 956,000
Total Liabilities 5,029,664 2,836,978 7,866,642 -
Deferred Inflows or Resources:

Unavailable revenues 329,475 1,076,523 - 1,405,998
Total Deferred Inflows of Resources 329,475 1,076,523 - 1,405,998 Fund Balances:

Nonspendable:

Inventory - 17,570 - 17,570
Prepaid costs and deposits 16,968 17,119 - 34,087
Restricted for:

Public safety 2,058,431 - 2,058,431 -
Capital projects - 190,103 - 190,103
Debt service - - 125,067 125,067
Street related purposes 27,850,479 - 27,850,479 -
Low income housing 4,510,728 - 4,510,728 -
Public facilities 3,978,182 - 3,978,182 -
Special programs 8,169,630 1,302,639 9,472,269 -
Committed to:

Aquatic center 1,871,454 - 1,871,454 -
Energy loan program 1,821,303 - 1,821,303 -
Assigned to:

Capital projects 14,734,608 - 14,734,608 -
Property acquisition - 420,387 - 420,387
Public facilities 14,804,510 - 14,804,510 -
Special programs - 687,519 - 687,519
Street related purposes 1,875,576 - 1,875,576 -
Total Fund Balances 50,294,745 34,032,461 125,067 84,452,273 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 55,653,884 $ 36,869,439 $ 1,201,590 $ 93,724,913 June 30, 2023
Special
Revenue
Funds
Total Other
Governmental
Funds
Debt Service
Fund
Capital
Projects Funds
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CITY OF PALM DESERT
Combining Statement of Revenues, Expenditures
And Changes in Fund Balances
Other Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes 6,796,234 $ - $ - $ 6,796,234 $
Special assessments collected 1,351,625 - 128,760 1,480,385 Licenses and permits - 571,716 - 571,716
Intergovernmental revenues 3,605,743 32,575 - 3,638,318 Charges for services 1,136,741 2,587,864 - 3,724,605
Investment earnings 1,424,259 1,010,906 2,725 2,437,890 Rental income - 82,981 - 82,981
Fines and forfeitures 7,385 - - 7,385
Miscellaneous 30,027 214,790 - 244,817
Total Revenues 14,352,014 4,500,832 131,485 18,984,331
Expenditures:

Current:

General government 828,827 1,184,038 1,814 2,014,679
Public safety - 384,731 - 384,731
Parks, recreation and culture 2,221,231 9,925,404 - 12,146,635 Public works 6,941,412 642,566 - 7,583,978
Housing and redevelopment 1,016,156 - - 1,016,156
Capital outlay 2,747,563 3,527,619 6,275,182 -
Debt service:

Principal retirement 86,000 - 50,000 136,000
Interest and fiscal charges 75,330 - 54,310 129,640
Total Expenditures 14,301,250 15,279,627 106,124 29,687,001 Excess of Revenues Over (Under) Expenditures 50,764 (10,778,795) 25,361 (10,702,670) Other Financing Sources (Uses)
Transfers in 2,515,384 15,352,358 17,867,742 -
Transfers out (2,407,925) (70,806) (2,478,731) -
Total Other Financing Sources (Uses) 107,459 15,281,552 15,389,011 - Net Change in Fund Balances 158,223 4,502,757 25,361 4,686,341 Fund Balances, Beginning of Year 50,136,522 29,529,704 99,706 79,765,932 Fund Balances, End of Year $ 50,294,745 $ 34,032,461 $ 125,067 $ 84,452,273 Debt
Service
Fund
Total Other
Governmental
Funds
Special
Revenue
Funds
Capital
Projects Funds
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OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
Special Revenue Funds are used to account for proceeds of specific revenue sources other than expendable trust that are legally restricted to expenditures for specific purposes.

Traffic Safety Fund – Traffic and court fines are collected in these funds. A transfer from this Fund to the General Fund is made at the end of the fiscal year by council action to be applied toward the eligible expenditures permitted by law.

Gas Tax Fund – Portions of the tax rate per gallon levied by the State of California on all gasoline purchases are allocated to cities throughout the State. These funds are restricted to expenditure for transit and street-related purposes.

Measure A – This fund is used to account for the half-cent sales tax approved by the voters of Riverside County in 1988. Funds are restricted for local street and road expenditures only.

Housing Mitigation Fee Fund – This fund is used to account for fees collected from construction of commercial and office buildings for low and moderate income mitigation purposes to be used strictly for projects and programs that benefit the low and moderate income households.

Community Development Block Grant Fund – This fund is used to account for the receipts and expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development.

Child Care Program Fund – This fund is used to collect funds from developers for the purpose of providing child care programs.

Public Safety Police Grants Fund – This fund is used to account for grants received from the U.S. Department of Justice under the Local Law Enforcement Block Grant Program for the purpose of purchasing equipment related to public safety.

New Construction Tax Fund – This fund is used to account for tax collected upon application to the City for a building permit from every person/entity for the construction of any new building, addition or trailer space in the city according to a fee schedule. Its use is restricted for the acquisition and development of public facilities such as parks, playgrounds and public structures.

Planned Drainage Fund – This fund is used to account for off-site drainage fees based on an established fee schedule collected prior to approval of the final map in the case of land being subdivided or prior to the issuance of a building permit in the case of construction or improvement of subdivided land.

Parks and Recreational Facilities Fund – This fund is used to account for fees collected for residential and subdivision developments collected either at the time grading permits are paid or prior to the approval of the final map. Its use is restricted for expenditures related to park development, maintenance and equipment.

Traffic Signals Fund – This fund is used to account for fees collected for residential, commercial and industrial developments either at the time grading permits are paid or prior to the approval of the final map.

Its use is restricted for expenditures related to the acquisition and maintenance of traffic signals.

Fire Facilities Restoration Fund – This fund is used to collect funds from developers for the purpose of construction, restoration and purchase of equipment for fire stations within the City.

Recycling Fund – This fund is used to account for resources resulting from lower landfill tipping fees which have been reduced to zero in 2013, and State grant funds. Funds will be utilized for purposes of promoting recycling and recycling related activities.
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OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
(CONTINUED)
Energy Independence Loan Fund – This fund is used to provide funding for the AB811 Energy Loans and collect assessments from those AB811 loans through property tax collections. The assessments collected will be used to service debt issued and to provide additional funding for the AB811 loans.

Air Quality Management Fund – This fund accounts for receipts from South Coast Air Quality Management District, sixty percent of which is disbursed to the Coachella Valley Association of Governments.

Aquatic Center Fund – This fund is used to account for revenues and expenditures for the City’s aquatic facility.

Cannabis Compliance Fund – This fund is used to account for revenues and expenditures for the City’s cannabis compliance activity.

El Paseo Assessment District Fund – This fund is used to collect assessments on all business establishments located within the boundaries set for the El Paseo Parking and business improvement area based on a fee schedule established for the various types of businesses. Proceeds from all charges are used for the promotion of business activities in the area.

Various Landscape and Lighting District Funds – These funds are used to account for expenditures and receipts of property taxes and service fees levied to the property owners in the various landscaping and lighting districts, which were formed to provide landscaping and street lighting maintenance. Individual landscaping and lighting funds are set up for Districts No 1 through 17.

Affordable Housing Fund – This fund is used to account for the management and operation of the affordable housing portfolio.

Permanent Local Housing Allocation Grant Fund – This fund provides a permanent source of funding to cities and counties to help meet the need for affordable housing and to increase the supply of affordable housing units.

Opioid Settlement Funds – This fund is used to account for the receipts and expenditures related to the Nationwide Class Action Opioid Settlement intended to be used to address the nation’s continuing opioid crisis.
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CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:

Pooled cash and investments $ 1,806 $ 4,673,470 $ 21,719,622 $ 3,158,997 Receivables:

Accounts - - - -
Assessments - - - -
Loans - - - -
Interest - - - -
Allowance for interest on Successor Agency - - - -
Prepaid costs - - - -
Due from other governments 3,904 337,925 1,004,357 -
Inventories - - - -
Total Assets $ 5,710 $ 5,011,395 $ 22,723,979 $ 3,158,997 Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ - $ 187,892 $ 844,705 $ 3,054
Accrued liabilities - - - -
Unearned revenues - - - -
Deposits payable - - - -
Due to other funds - - - -
Advances from other funds - - - -
Total Liabilities - 187,892 844,705 3,054
Deferred Inflows of Resources:

Unavailable revenues - - 280,889 -
Total Deferred Inflows of Resources - - 280,889 -
Fund Balances:

Nonspendable:

Inventory - - - -
Prepaid costs - - - -
Restricted for:

Public safety - - - -
Street related purposes 5,710 4,823,503 21,598,385 -
Low income housing - - 3,155,943 -
Public facilities - - - -
Special programs - - - -
Committed to:

Aquatic center - - - -
Energy loan program - - - -
Assigned to:

Community development projects - - - -
Total Fund Balances 5,710 4,823,503 21,598,385 3,155,943 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 5,710 $ 5,011,395 $ 22,723,979 $ 3,158,997 Traffic Safety Gas Tax Measure A
Housing
Mitigation Fee
June 30, 2023
107

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CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:

Pooled cash and investments
Receivables:

Accounts
Assessments
Loans
Interest
Allowance for interest on Successor Agency
Prepaid costs
Due from other governments
Inventories
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable:

Inventory
Prepaid costs
Restricted for:

Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:

Aquatic center
Energy loan program
Assigned to:

Community development projects
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023

(CONTINUED)
$ 7,998 $ 769,068 $ 207,054 $ 1,578,845
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
93,471 - - -
- - - -
$ 101,469 $ 769,068 $ 207,054 $ 1,578,845
$ 62,307 $ - $ 109,800 $ -
- - - -
- - 76,180 -
- - - -
- - - -
- - - -
62,307 - 185,980 -
- - - -
- - - -
- - - -
- - - -
- - 21,074 -
- - - -
- - - -
- 769,068 1,578,845 -
39,162 - - -
- - - -
- - - -
- - - -
39,162 769,068 21,074 1,578,845
$ 101,469 $ 769,068 $ 207,054 $ 1,578,845
Public Safety
Police Grants
New
Construction
Tax
Community
Development
Block Grant
Child Care
Program
108

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CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable:

Inventory
Prepaid costs
Restricted for:

Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:

Aquatic center
Energy loan program
Assigned to:

Community development projects
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023

$ 897,347 $ 1,838,223 $ 525,534 $ 1,661,964
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
$ 897,347 $ 1,838,223 $ 525,534 $ 1,661,964
$ - $ 207,954 $ - $ 81,264
- - - -
- - - -
- - - -
- - - -
- - - -
- 207,954 - 81,264
- - - -
- - - -
- - - -
- - - -
- - 1,580,700 -
897,347 - 525,534 -
- - - -
- 1,630,269 - -
- - - -
- - - -
- - - -
- - - -
897,347 1,630,269 525,534 1,580,700
$ 897,347 $ 1,838,223 $ 525,534 $ 1,661,964
Fire Facilities
Restoration
Planned
Drainage
Parks and
Recreational
Facilities Traffic Signals
109

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CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable:

Inventory
Prepaid costs
Restricted for:

Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:

Aquatic center
Energy loan program
Assigned to:

Community development projects
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023 (CONTINUED)
$ 3,221,737 $ 1,552,717 $ 41,076 $ 2,094,235
65,691 - - 666,790
- 4,481 - -
- 1,221,675 - -
- 49,251 - -
- - - -
1,050 4,000 - 11,918
- - 16,972 -
- - - 17,570
$ 3,288,478 $ 2,832,124 $ 58,048 $ 2,790,513
$ 30,672 $ 2,235 $ 25,759 $ 889,571
- - - -
103,613 - - -
- - - -
- - - -
- 956,000 - -
134,285 958,235 25,759 889,571
- 48,586 - -
- 48,586 - -
- - - 17,570
1,050 4,000 - 11,918
- - - -
- - - -
- - - -
- - - -
3,153,143 - 32,289 -
- - 1,871,454 -
- 1,821,303 - -
- - - -
3,154,193 1,825,303 32,289 1,900,942
$ 3,288,478 $ 2,832,124 $ 58,048 $ 2,790,513
Recycling
Energy
Independence
Loan
Air Quality
Management
Aquatic
Center
110

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CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable:

Inventory
Prepaid costs
Restricted for:

Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:

Aquatic center
Energy loan program
Assigned to:

Community development projects
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023

$ 1,433,948 $ 81,840 $ 5,026,091 $ 1,364,171
160,963 9,044 - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 20,416 -
- - - -
$ 1,594,911 $ 90,884 $ 5,046,507 $ 1,364,171
$ - $ 28,669 $ 163,686 $ -
- - - 14,520
- - - -
3,780 - - -
1,136,962 - - -
- - - -
1,140,742 28,669 163,686 14,520
- - - -
- - - -
- - - -
- - - -
454,169 - - -
- - - -
- - 1,349,651 -
- - - -
- 62,215 4,882,821 -
- - - -
- - - -
- - - -
454,169 62,215 4,882,821 1,349,651
$ 1,594,911 $ 90,884 $ 5,046,507 $ 1,364,171
El Paseo
Assessment
District
Landscape
and Lighting
District
Nos. 1 - 17
Affordable
Housing
Cannabis
Compliance
111

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CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable:

Inventory
Prepaid costs
Restricted for:

Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:

Aquatic center
Energy loan program
Assigned to:

Community development projects
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023
$ 5,134 $ 103,529 $ 51,964,406
- - 902,488
- - 4,481
- 1,221,675 -
- - 49,251
- - -
- - 16,968
- 1,477,045 -
- - 17,570
$ 5,134 $ 103,529 $ 55,653,884
$ - $ 2,637,568 - $
- - 14,520
- 101,041 280,834
- - 3,780
- - 1,136,962
- - 956,000
- 101,041 5,029,664
- - 329,475
- - 329,475
- - 17,570
- - 16,968
- 2,488 2,058,431
- - 27,850,479
5,134 4,510,728 -
- 3,978,182 -
- 8,169,630 -
- - 1,871,454
- 1,821,303 -
- - -
5,134 2,488 50,294,745
$ 5,134 $ 103,529 $ 55,653,884
Total Other
Special
Revenue
Funds
National
Opioid
Settlement
Permanent
Local Housing
Allocation
Grant
112

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CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
Revenues:

Taxes $ - $ - $ 3,562,513 $ 55,521
Special assessments collected - - - -
Intergovernmental revenues - 2,421,662 97,960 -
Charges for services - - - -
Investment earnings 87 86,076 738,084 126,075
Fines and forfeitures 7,385 - - -
Miscellaneous - - - 30,000
Total Revenues 7,472 2,507,738 4,398,557 211,596
Expenditures:

Current:

General government - - - -
Public safety - - - -
Parks, recreation and culture - - - -
Public works - 2,853,403 3,171,819 -
Housing and redevelopment - - - 602,802
Capital outlay - - 1,446,804 -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total Expenditures - 2,853,403 4,618,623 602,802
Excess of Revenues Over
(Under) Expenditures 7,472 (345,665) (220,066) (391,206) Other Financing Sources (Uses)
Transfers in - - - -
Transfers out (4,700) - - -
Total Other Financing
Sources (Uses) (4,700) - - -
Net Change in Fund Balances 2,772 (345,665) (220,066) (391,206) Fund Balances, Beginning of Year 2,938 5,169,168 21,818,451 3,547,149 Fund Balances, End of Year $ 5,710 $ 4,823,503 $ 21,598,385 $ 3,155,943 Traffic Safety Gas Tax Measure A
Housing
Mitigation Fee
113

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CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
Revenues:

Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:

(CONTINUED)
$ - $ 71,412 $ - $ 518,442
- - - -
352,646 - 382,311 -
- - - -
- 23,793 5,027 52,485
- - - -
- - - -
352,646 95,205 387,338 570,927
186,870 - - -
- - 382,311 -
- - - -
- - - -
- - - -
- - - 444,430
- - - -
- - - -
186,870 - 382,311 444,430
165,776 95,205 5,027 126,497
- - - -
- - - -
- - - -
165,776 95,205 5,027 126,497
(126,614) 673,863 16,047 1,452,348
$ 39,162 $ 769,068 $ 21,074 $ 1,578,845
Public Safety
Police Grants
New
Construction
Tax
Community
Development
Block Grant
Child Care
Program
114

Page 319 of 1074 ends

CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
Revenues:

Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing
Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
$ 132,022 $ 70,597 $ 70,931 $ 297,648
- - - -
- - - -
- - - -
27,188 59,795 15,853 49,188
- - - -
- - - -
159,210 130,392 86,784 346,836
- - - -
2,400 - - -
- - - -
- - - -
- - - -
- 208,754 - 134,222
- - - -
- - - -
2,400 208,754 - 134,222
156,810 (78,362) 86,784 212,614
- - - -
- - - -
- - - -
156,810 (78,362) 86,784 212,614
740,537 1,708,631 438,750 1,368,086
$ 897,347 $ 1,630,269 $ 525,534 $ 1,580,700
Planned
Drainage
Parks and
Recreational
Facilities Traffic Signals
Fire Facilities
Restoration
115

Page 320 of 1074 ends

CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
Revenues:

Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:

(CONTINUED)
$ - $ - $ - $ -
- 71,522 - -
- - 84,901 -
412,066 - - 724,675
103,946 28,740 1,302 17,600
- - - -
27 - - -
516,039 100,262 86,203 742,275
289,792 5,315 64,689 -
- - - -
- - 2,221,231 -
- - - -
- - - -
- - 4,061 506,656
- 86,000 - -
- 75,330 - -
289,792 166,645 68,750 2,727,887
226,247 (66,383) 17,453 (1,985,612)
- - 1,890,294 -
- - - -
- - 1 - ,890,294
226,247 (66,383) 17,453 (95,318)
2,927,946 1,891,686 14,836 1,996,260
$ 3,154,193 $ 1,825,303 $ 32,289 $ 1,900,942
Air Quality
Management
Aquatic
Recycling Center
Energy
Independence
Loan
116

Page 321 of 1074 ends

CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
Revenues:

Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:

$ 2,017,148 $ - $ - $ -
- 271,431 1,008,672 -
- - - -
- - - -
- 1,460 79,938 -
- - - -
- - - -
2,017,148 272,891 1,088,610 -
- 282,161 - -
20 - - -
- - - -
- - 916,190 -
- - - 413,354
- - - 2,636
- - - -
- - - -
20 282,161 916,190 415,990
2,017,128 (9,270) 172,420 (415,990)
- - 209,100 415,990
(2,136,962) - - -
(2,136,962) - 209,100 415,990
(119,834) (9,270) 381,520 -
574,003 71,485 4,501,301 1,349,651
$ 454,169 $ 62,215 $ 4,882,821 $ 1,349,651
Cannabis
Compliance
El Paseo
Assessment
District
Landscape
and Lighting
District
Nos. 1 - 17
Affordable
Housing
117

Page 322 of 1074 ends

CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
Revenues:

Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:

$ - $ 6,796,234 - $
- 1,351,625 -
266,263 3,605,743 -
- 1,136,741 -
5,134 2,488 1,424,259
- - 7,385
- - 30,027
271,397 2,488 14,352,014
- - 828,827
- - 384,731
- 2,221,231 -
- 6,941,412 -
- 1,016,156 -
- 2,747,563 -
- - 86,000
- - 75,330
- 14,301,250 -
271,397 2,488 50,764
- 2,515,384 -
(266,263) (2,407,925) -
(266,263) - 107,459
5,134 2,488 158,223
- 50,136,522 -
$ 5,134 $ 2,488 $ 50,294,745
Total Other
Special
Revenue
Funds
National
Opioid
Settlement
Permanent
Local Housing
Allocation
Grant
118

Page 323 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Traffic Safety
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,938 $ 2,938 $ 2,938 $ - $ Resources (Inflows):

Investment earnings - - 87 87
Fines and forfeitures 4,700 4,700 7,385 2,685
Amounts Available for Appropriations 7,638 7,638 10,410 2,772 Charges to Appropriation (Outflow):

Transfers out 4,700 4,700 4,700 -
Total Charges to Appropriations 4,700 4,700 4,700 -
Budgetary Fund Balance, June 30 $ 2,938 $ 2,938 $ 5,710 $ 2,772 119

Page 324 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Gas Tax
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,169,168 $ 5,169,168 $ 5,169,168 $ - $ Resources (Inflows):

Intergovernmental 2,802,451 2,802,451 2,421,662 (380,789) Investment earnings 13,000 13,000 86,076 73,076
Amounts Available for Appropriations 7,984,619 7,984,619 7,676,906 (307,713) Charges to Appropriation (Outflow):

Public works 4,700,000 7,353,968 2,853,403 4,500,565
Total Charges to Appropriations 4,700,000 7,353,968 2,853,403 4,500,565 Budgetary Fund Balance, June 30 3,284,619 $ 630,651 $ 4,823,503 $ 4,192,852 $ 120

Page 325 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Measure A
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 21,818,451 $ $ 21,818,451 $ 21,818,451 $ - Resources (Inflows):

Taxes 3,199,000 3,199,000 3,562,513 363,513
Intergovernmental 1,663,000 1,663,000 97,960 (1,565,040) Investment earnings 100,000 100,000 738,084 638,084
Amounts Available for Appropriations 26,780,451 26,780,451 26,217,008 (563,443) Charges to Appropriation (Outflow):

Public works 300,000 4,521,524 3,171,819 1,349,705
Capital outlay 7,878,000 10,666,684 1,446,804 9,219,880 Total Charges to Appropriations 8,178,000 15,188,207 4,618,623 10,569,584 Budgetary Fund Balance, June 30 $ 18,602,451 $ 11,592,244 $ 21,598,385 $ 10,006,141 Year ended June 30, 2023
121

Page 326 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Housing Mitigation Fee
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,547,149 $ $ 3,547,149 $ 3,547,149 $ - Resources (Inflows):

Taxes 64,000 64,000 55,521 (8,479)
Investment earnings 8,000 8,000 126,075 118,075
Miscellaneous - - 30,000 30,000
Amounts Available for Appropriations 3,619,149 3,619,149 3,758,745 139,596 Charges to Appropriation (Outflow):

Housing and redevelopment 404,500 404,500 602,802 (198,302) Total Charges to Appropriations 404,500 404,500 602,802 (198,302) Budgetary Fund Balance, June 30 $ 3,214,649 $ 3,214,649 $ 3,155,943 $ (58,706) 122

Page 327 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Community Development Block Grant
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (126,614) $ $ (126,614) $ (126,614) $ - Resources (Inflows):

Intergovernmental 418,663 418,663 352,646 (66,017)
Investment earnings 100 100 - (100)
Amounts Available for Appropriations 292,149 292,149 226,032 (66,117) Charges to Appropriation (Outflow):

General government 418,663 822,853 186,870 635,983
Total Charges to Appropriations 418,663 822,853 186,870 635,983 Budgetary Fund Balance, June 30 $ (126,514) $ (530,704) $ 39,162 $ 569,866 123

Page 328 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Child Care Program
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 673,863 $ 673,863 $ 673,863 $ - $ Resources (Inflows):

Taxes 90,000 90,000 71,412 (18,588)
Investment earnings 4,000 4,000 23,793 19,793
Amounts Available for Appropriations 767,863 767,863 769,068 1,205 Charges to Appropriation (Outflow):

Capital outlay - 684,000 - 684,000
Total Charges to Appropriations - 684,000 - 684,000
Budgetary Fund Balance, June 30 767,863 $ 83,863 $ 769,068 $ 685,205 $ 124

Page 329 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Public Safety Police Grants
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 16,047 $ $ 16,047 $ 16,047 $ - Resources (Inflows):

Intergovernmental 200,000 200,000 382,311 182,311
Investment earnings 500 500 5,027 4,527
Amounts Available for Appropriations 216,547 216,547 403,385 186,838 Charges to Appropriation (Outflow):

Public safety 200,000 200,000 382,311 (182,311)
Total Charges to Appropriations 200,000 200,000 382,311 (182,311) Budgetary Fund Balance, June 30 $ 16,547 $ 16,547 $ 21,074 $ 4,527 125

Page 330 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
New Construction Tax
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,452,348 $ 1,452,348 $ 1,452,348 $ - $ Resources (Inflows):

Taxes 414,200 414,200 518,442 104,242
Intergovernmental 3,724,907 3,724,907 - (3,724,907)
Investment earnings 8,000 8,000 52,485 44,485
Amounts Available for Appropriations 5,599,455 5,599,455 2,023,275 (3,576,180) Charges to Appropriation (Outflow):

Capital outlay 1,500,000 4,212,082 444,430 3,767,652
Total Charges to Appropriations 1,500,000 4,212,082 444,430 3,767,652 Budgetary Fund Balance, June 30 $ 4,099,455 $ 1,387,373 $ 1,578,845 $ 191,472 126

Page 331 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Planned Drainage
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 740,537 $ 740,537 $ 740,537 $ - $ Resources (Inflows):

Taxes 70,000 70,000 132,022 62,022
Investment earnings 2,500 2,500 27,188 24,688
Amounts Available for Appropriations 813,037 813,037 899,747 86,710 Charges to Appropriation (Outflow):

Public safety 239,262 239,262 2,400 236,862
Total Charges to Appropriations 239,262 239,262 2,400 236,862 Budgetary Fund Balance, June 30 573,775 $ 573,775 $ 897,347 $ 323,572 $ 127

Page 332 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Parks and Recreational Facilities
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,708,631 $ 1,708,631 $ 1,708,631 $ - $ Resources (Inflows):

Taxes 175,000 175,000 70,597 (104,403)
Investment earnings 3,000 3,000 59,795 56,795
Amounts Available for Appropriations 1,886,631 1,886,631 1,839,023 (47,608) Charges to Appropriation (Outflow):

Capital outlay - 1,258,400 208,754 1,049,646
Total Charges to Appropriations - 1,258,400 208,754 1,049,646 Budgetary Fund Balance, June 30 1,886,631 $ 628,231 $ 1,630,269 $ 1,002,038 $ 128

Page 333 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Traffic Signals
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 438,750 $ 438,750 $ 438,750 $ - $ Resources (Inflows):

Taxes 20,000 20,000 70,931 50,931
Investment earnings 500 500 15,853 15,353
Amounts Available for Appropriations 459,250 459,250 525,534 66,284 Charges to Appropriation (Outflow):

Capital outlay - 225,000 - 225,000
Total Charges to Appropriations - 225,000 - 225,000
Budgetary Fund Balance, June 30 459,250 $ 234,250 $ 525,534 $ 291,284 $ 129

Page 334 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Fire Facilities Restoration
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,368,086 $ 1,368,086 $ 1,368,086 $ - $ Resources (Inflows):

Taxes 116,100 116,100 297,648 181,548
Investment earnings 7,000 7,000 49,188 42,188
Amounts Available for Appropriations 1,491,186 1,491,186 1,714,922 223,736 Charges to Appropriation (Outflow):

Capital outlay - 1,223,471 134,222 1,089,249
Total Charges to Appropriations - 1,223,471 134,222 1,089,249 Budgetary Fund Balance, June 30 1,491,186 $ 267,715 $ 1,580,700 $ 1,312,985 $ 130

Page 335 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Recycling
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,927,946 $ $ 2,927,946 $ 2,927,946 $ - Resources (Inflows):

Intergovernmental 50,000 50,000 - (50,000)
Charges for services 430,000 430,000 412,066 (17,934)
Investment earnings 15,000 15,000 103,946 88,946
Miscellaneous - - 27 27
Amounts Available for Appropriations 3,422,946 3,422,946 3,443,985 21,039 Charges to Appropriation (Outflow):

General government 633,000 699,050 289,792 409,258
Total Charges to Appropriations 633,000 699,050 289,792 409,258 Budgetary Fund Balance, June 30 $ 2,789,946 $ 2,723,896 $ 3,154,193 $ 430,297 131

Page 336 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Energy Independence Loan
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,891,686 $ $ 1,891,686 $ 1,891,686 $ - Resources (Inflows):

Assessments 300,000 300,000 71,522 (228,478)
Investment earnings 5,000 5,000 28,740 23,740
Amounts Available for Appropriations 2,196,686 2,196,686 1,991,948 (204,738) Charges to Appropriation (Outflow):

General government 15,000 15,000 5,315 9,685
Debt service:

Principal retirement 130,000 130,000 86,000 44,000
Interest and fiscal charges 83,480 83,480 75,330 8,150
Total Charges to Appropriations 228,480 228,480 166,645 61,835 Budgetary Fund Balance, June 30 $ 1,968,206 $ 1,968,206 $ 1,825,303 $ (142,903) 132

Page 337 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Air Quality Management
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 14,836 $ 14,836 $ 14,836 $ - $ Resources (Inflows):

Intergovernmental 73,400 73,400 84,901 11,501
Investment earnings 50 50 1,302 1,252
Amounts Available for Appropriations 88,286 88,286 101,039 12,753 Charges to Appropriation (Outflow):

General government 63,100 63,100 64,689 (1,589)
Capital outlay - - 4,061 (4,061)
Total Charges to Appropriations 63,100 63,100 68,750 (5,650) Budgetary Fund Balance, June 30 25,186 $ 25,186 $ 32,289 $ 7,103 $ 133

Page 338 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Aquatic Center
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,996,260 $ 1,996,260 $ 1,996,260 $ - $ Resources (Inflows):

Charges for services 811,786 811,786 724,675 (87,111)
Investment earnings 3,000 3,000 17,600 14,600
Transfers in 1,805,294 1,920,294 1,890,294 (30,000)
Amounts Available for Appropriations 4,616,340 4,731,340 4,628,829 (102,511) Charges to Appropriation (Outflow):

Parks, recreation and culture 2,349,080 2,349,080 2,221,231 127,849 Capital outlay 271,000 543,517 506,656 36,861
Total Charges to Appropriations 2,620,080 2,892,597 2,727,887 164,710 Budgetary Fund Balance, June 30 1,996,260 $ 1,838,743 $ 1,900,942 $ 62,199 $ 134

Page 339 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Cannabis Compliance
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 574,003 $ 574,003 $ 574,003 $ - $ Resources (Inflows):

Taxes 3,190,000 2,395,000 2,017,148 (377,852)
Amounts Available for Appropriations 3,764,003 2,969,003 2,591,151 (377,852) Charges to Appropriation (Outflow):

Public safety - - 20 (20)
Transfers out 3,180,000 3,180,000 2,136,962 1,043,038
Total Charges to Appropriations 3,180,000 3,180,000 2,136,982 1,043,018 Budgetary Fund Balance, June 30 584,003 $ (210,997) $ 454,169 $ 665,166 $ 135

Page 340 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
El Paseo Assessment District
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 71,485 $ $ 71,485 $ 71,485 $ - Resources (Inflows):

Special assessments collected 250,000 250,000 271,431 21,431 Investment earnings - - 1,460 1,460
Amounts Available for Appropriations 321,485 321,485 344,376 22,891 Charges to Appropriation (Outflow):

General government 250,000 291,000 282,161 8,839
Total Charges to Appropriations 250,000 291,000 282,161 8,839 Budgetary Fund Balance, June 30 $ 71,485 $ 30,485 $ 62,215 $ 31,730 136

Page 341 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Landscape and Lighting Districts Nos. 1 - 17
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,501,301 $ 4,501,301 $ 4,501,301 $ - $ Resources (Inflows):

Special assessments collected 1,035,784 1,035,784 1,008,672 (27,112) Investment earnings 10,000 10,000 79,938 69,938
Transfers in 135,000 209,100 209,100 -
Amounts Available for Appropriations 5,682,085 5,756,185 5,799,011 42,826 Charges to Appropriation (Outflow):

Public works 1,791,480 1,802,000 916,190 885,810
Total Charges to Appropriations 1,791,480 1,802,000 916,190 885,810 Budgetary Fund Balance, June 30 3,890,605 $ 3,954,185 $ 4,882,821 $ 928,636 $ 137

Page 342 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Affordable Housing Fund
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,349,651 $ 1,349,651 $ 1,349,651 $ - $ Resources (Inflows):

Transfers in 446,400 439,500 415,990 (23,510)
Amounts Available for Appropriations 1,796,051 1,789,151 1,765,641 (23,510) Charges to Appropriation (Outflow):

Housing and redevelopment 445,400 436,500 413,354 23,146 Capital outlay 1,000 3,000 2,636 364
Total Charges to Appropriations 446,400 439,500 415,990 23,510 Budgetary Fund Balance, June 30 1,349,651 $ 1,349,651 $ 1,349,651 $ - $ 138

Page 343 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Permanent Local Housing Allocation Grant
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 - $ $ - $ - $ -
Resources (Inflows):

Intergovernmental - - 266,263 266,263
Use of money and property - - 5,134 5,134
Amounts Available for Appropriation - - 271,397 271,397 Charges to Appropriation (Outflow):

Transfers out - 266,263 266,263 -
Total Charges to Appropriations - 266,263 266,263 -
Budgetary Fund Balance, June 30 $ - $ (266,263) $ 5,134 $ 271,397 139

Page 344 of 1074 ends

7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
140

Page 345 of 1074 ends

OTHER GOVERNMENTAL FUNDS - CAPITAL PROJECTS
Capital Projects Funds are used to account for the acquisition and construction of major capital facilities, except for those financed by certain Special Revenue and Enterprise funds.

Capital Projects Reserve – This fund is used to account for resources and expenditures for capital improvement projects that are related to the acquisition and development of public facilities, infrastructure and equipment.

Drainage Facilities Fund – This fund is used to account for resources and expenditures for planned capital improvement projects that are under the Master Drainage Plan.

Economic Development – This fund is used to account for façade enhancement projects for Palm Desert businesses utilizing funds from the sales of certain City-owned properties.

Parks and Recreational Facilities Fund – This fund is used to account for resources and expenditures for capital improvement projects that are related to park development, maintenance and equipment.

Art in Public Places Fund – This fund is used to account for fees collected from residential, commercial and public facilities development except for street and drainage projects. Its use is restricted for acquisition, installation, improvement and maintenance of artwork to be displayed in the City, the administration of the program and community public art education programs.

Signalization Fund – This fund is used to account for resources and expenditures for capital improvement projects that are related to the acquisition and maintenance of traffic signals.

Capital Golf Fund – This fund is used to offset the cost of capital improvements, equipment purchases, perimeter maintenance, pay off assessments and other nonrecurring costs that will arise as a result of Desert Willow Golf Course Resort. Funding sources for the Golf Course Maintenance Fund are collections from the IROC and Standard Vacation Ownership, Inc. time-share project.

Buildings Fund – This fund is used to account for resources and expenditures for capital improvement projects that are related to the improvement and maintenance of public facilities and structures.

Library Fund – This fund is used to account for resources and expenditures for capital improvement projects that are related to the purchase of library resources for the Multi-Agency Library.

Special Assessment District Funds – This fund is used to account for the construction of public improvements from proceeds resulting from the creation of various assessment Districts.

Assessment District No. 94-3 Merano
Silver Spur Ranch
Highlands Undergrounding
CFD University Special Assessment
Assessment 29
University Park
141

Page 346 of 1074 ends

CITY OF PALM DESERT
Combining Balance Sheet
Other Capital Projects Funds
Assets:

Pooled cash and investments 14,157,687 $ 1,807,607 $ 1, $ 10,047 438,911 $ Receivables:

Interest - - - -
Prepaid costs - - 17,119 -
Deposits - - 20,000 -
Advances to other funds - - - -
Total Assets $ 14,157,687 $ 1,807,607 $ 1,476,030 $ 10,047 Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ 662,673 $ 43,436 $ 3,435 $ -
Unearned revenues 251,273 - - -
Total Liabilities 913,946 43,436 3,435 -
Fund Balances:

Nonspendable:

Prepaid costs and deposits - - 17,119 -
Restricted for:

Capital projects - - - -
Special programs - - - -
Assigned to:

Capital projects 12,823,354 - - -
Property acquisition 420,387 - - -
Public facilities - - 1, 455,476 10,047
Special programs - - - -
Street related purposes - 1,764,171 - -
Total Fund Balances 13,243,741 1,764,171 1,472,595 10,047 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 14,157,687 $ 1,807,607 $ 1,476,030 $ 10,047 June 30, 2023
Parks and
Recreational
Facilities
Capital
Projects
Reserve
Drainage
Facilities
Economic
Development
142

Page 347 of 1074 ends

CITY OF PALM DESERT
Combining Balance Sheet
Other Capital Projects Funds
Assets:

Pooled cash and investments
Receivables:

Interest
Prepaid costs
Deposits
Advances to other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Unearned revenues
Total Liabilities
Fund Balances:

Nonspendable:

Prepaid costs and deposits
Restricted for:

Capital projects
Special programs
Assigned to:

Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023

(CONTINUED)
$ 1,418,070 $ 111,405 $ 10,480,088 $ 3,350,995
- - - -
- - - -
- - - -
- 3, - 179,888 -
$ 1,418,070 $ 111,405 $ 13,659,976 $ 3,350,995
$ 115,431 $ - $ 320,989 $ 1,439,741
- - - -
115,431 - 320,989 1,439,741
- - - -
- - - -
1,302,639 - - -
- - 1, - 911,254
- - - -
- 13, - 338,987 -
- - - -
- 111,405 - -
1,302,639 111,405 13,338,987 1,911,254
$ 1,418,070 $ 111,405 $ 13,659,976 $ 3,350,995
Art in Public
Places Signalization Capital Golf Buildings
143

Page 348 of 1074 ends

CITY OF PALM DESERT
Combining Balance Sheet
Other Capital Projects Funds
Assets:

Pooled cash and investments
Receivables:

Interest
Prepaid costs
Deposits
Advances to other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Unearned revenues
Total Liabilities
Fund Balances:

Nonspendable:

Prepaid costs and deposits
Restricted for:

Capital projects
Special programs
Assigned to:

Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023

$ 687,519 $ 188,794 $ 618 $ 21
- - - -
- - - -
- - - -
- - - -
$ 687,519 $ 188,794 $ 618 $ 21
$ - $ - $ - $ -
- - - -
- - - -
- - - -
- 188,794 618 21
- - - -
- - - -
- - - -
- - - -
687,519 - - -
- - - -
687,519 188,794 618 21
$ 687,519 $ 188,794 $ 618 $ 21
Silver Spur
Ranch
Highlands
Library Undergrounding
Assessment
District
No. 94-3
Merano
144

Page 349 of 1074 ends

CITY OF PALM DESERT
Combining Balance Sheet
Other Capital Projects Funds
Assets:

Pooled cash and investments
Receivables:

Interest
Prepaid costs
Deposits
Advances to other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Unearned revenues
Total Liabilities
Fund Balances:

Nonspendable:

Prepaid costs and deposits
Restricted for:

Capital projects
Special programs
Assigned to:

Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023
$ 33, 670 $ 652,432
- -
17,119 -
20,000 -
3, - 179,888
$ 36, 670 $ 869,439
$ 2, - $ 585,705
- 251,273
2, - 836,978
17,119 -
670 190,103
1, - 302,639
14, - 734,608
- 420,387
14, - 804,510
- 687,519
1, - 875,576
34, 670 032,461
$ 36, 670 $ 869,439
Total Other
Capital
Projects Funds
Assessment
District 29
145

Page 350 of 1074 ends

CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Capital Projects Funds
Year Ended June 30, 2023
Revenues:

Licenses and permits $ - $ - $ - $ -
Intergovernmental revenues - - 32,575 -
Charges for services - - - -
Investment earnings 306,876 66,253 56,065 351
Rental income - - 82,981 -
Miscellaneous 50,000 - - -
Total Revenues 356,876 66,253 171,621 351
Expenditures:

Current:

General government 400,000 - 487,069 -
Parks, recreation and culture 8,911,852 - - -
Public works 336,423 306,143 - -
Capital outlay 1,395,245 - - -
Total Expenditures 11,043,520 306,143 487,069 -
Excess of Revenues Over
(Under) Expenditures (10,686,644) (239,890) (315,448) 351 Other Financing Sources (Uses)
Transfers in 14,184,017 - - -
Transfers out - - - -
Total Other Financing
Sources (Uses) 14,184,017 - - -
Net Change in Fund Balances 3,497,373 (239,890) (315,448) 351 Fund Balances, Beginning of Year 9,746,368 2,004,061 1,788,043 9,696 Fund Balances, End of Year $ 13,243,741 $ 1,764,171 $ 1,472,595 $ 10,047 Capital
Projects
Reserve
Drainage
Facilities
Economic
Development
Parks and
Recreational
Facilities
146

Page 351 of 1074 ends

CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Capital Projects Funds
Year Ended June 30, 2023
Revenues:

Licenses and permits
Intergovernmental revenues
Charges for services
Investment earnings
Rental income
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Parks, recreation and culture
Public works
Capital outlay
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing
Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year

(CONTINUED)
$ 571,716 $ - $ - $ -
- - - -
- 2,587,864 - -
48,669 3,720 416,972 89,036
- - - -
164,790 - - -
785,175 3,720 3,004,836 89,036
- - 296,969 -
123,717 889,835 - -
- - - -
532,954 - 1,599,420 -
656,671 889,835 - 1,896,389
128,504 3,720 2,115,001 (1,807,353)
- - 1,168,341 -
(70,806) - - -
(70,806) - 1,168,341 -
57,698 3,720 2,115,001 (639,012)
1,244,941 107,685 11,223,986 2,550,266
$ 1,302,639 $ 111,405 $ 13,338,987 $ 1,911,254
Art in Public
Places Signalization Capital Golf Buildings
147

Page 352 of 1074 ends

CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Capital Projects Funds
Year Ended June 30, 2023
Revenues:

Licenses and permits
Intergovernmental revenues
Charges for services
Investment earnings
Rental income
Miscellaneous
Total Revenues
Expenditures:

Current:

$ - $ - $ - $ -
- - - -
- - - -
22,964 - - -
- - - -
- - - -
22,964 - - -
- - - -
- - - -
- - - -
- - - -
- - - -
22,964 - - -
- - - -
- - - -
- - - -
22,964 - - -
664,555 188,794 618 21
$ 687,519 $ 188,794 $ 618 $ 21
Library
Assessment
District No. 94-
3 Merano
Silver Spur
Ranch
Highlands
Undergrounding
148

Page 353 of 1074 ends

CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Capital Projects Funds
Year Ended June 30, 2023
Revenues:

Licenses and permits
Intergovernmental revenues
Charges for services
Investment earnings
Rental income
Miscellaneous
Total Revenues
Expenditures:

Current:

$ 571,716 - $
32,575 -
2,587,864 -
1,010,906 -
82,981 -
214,790 -
4,500,832 -
1,184,038 -
9,925,404 -
642,566 -
3,527,619 -
15,279,627 -
(10,778,795) -
15,352,358 -
(70,806) -
15,281,552 -
4,502,757 -
670 29,529,704
$ 670 $ 34,032,461
Assessment
District 29
Total Other
Capital
Projects Fund
149

Page 354 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Capital Properties
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 48,192,389 $ 48,192,389 $ 48,192,389 $ - $ Resources (Inflows):

Investment earnings 40,000 40,000 2,203,742 2,163,742
Transfers in - 1,800,000 1,800,000 -
Amounts Available for Appropriations 48,232,389 50,032,389 52,196,131 2,163,742 Charges to Appropriation (Outflow):

General government - - 1,540 (1,540)
Parks and recreation 100,000 650,000 - 650,000
Public works - 1,962,058 824,708 1,137,350
Capital outlay - 22,995,454 158,993 22,836,461
Total Charges to Appropriations 100,000 25,607,512 985,241 24,622,271 Budgetary Fund Balance, June 30 48,132,389 $ 24,424,877 $ 51,210,890 $ 26,786,013 $ 150

Page 355 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Capital Projects Reserve
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 9,746,368 $ 9,746,368 $ 9,746,368 $ - $ Resources (Inflows):

Investment earnings 10,000 10,000 306,876 296,876
Miscellaneous - 262,321 50,000 (212,321)
Transfers in 400,000 14,154,017 14,184,017 30,000
Amounts Available for Appropriations 10,156,368 24,172,706 24,287,261 114,555 Charges to Appropriation (Outflow):

General government 400,000 400,000 400,000 -
Parks, recreation and culture 173,800 13,136,121 8,911,852 4,224,269 Public works - 341,696 336,423 5,273
Capital outlay 250,000 1,657,311 1,395,245 262,066
Total Charges to Appropriations 823,800 15,535,128 11,043,520 4,491,608 Budgetary Fund Balance, June 30 $ 9,332,568 $ 8,637,578 $ 13,243,741 $ 4,606,163 151

Page 356 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Drainage Facilities
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,004,061 $ 2,004,061 $ 2,004,061 $ - $ Resources (Inflows):

Investment earnings 20,000 20,000 66,253 46,253
Amounts Available for Appropriations 2,024,061 2,024,061 2,070,314 46,253 Charges to Appropriation (Outflow):

Public works 1,105,000 2,099,016 306,143 1,792,873
Total Charges to Appropriations 1,105,000 2,099,016 306,143 1,792,873 Budgetary Fund Balance, June 30 919,061 $ (74,955) $ 1,764,171 $ 1,839,126 $ 152

Page 357 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Economic Development
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,788,043 $ 1,788,043 $ 1,788,043 $ - $ Resources (Inflows):

Rental income 64,543 64,543 82,981 18,438
Intergovernmental 35,000 35,000 32,575 (2,425)
Investment earnings 10,000 10,000 56,065 46,065
Amounts Available for Appropriations 1,897,586 1,897,586 1,959,664 62,078 Charges to Appropriation (Outflow):

General government 474,442 1,210,624 487,069 723,555
Total Charges to Appropriations 474,442 1,210,624 487,069 723,555 Budgetary Fund Balance, June 30 1,423,144 $ 686,962 $ 1,472,595 $ 785,633 $ 153

Page 358 of 1074 ends

Investment earnings 100 100 351 251
Amounts Available for Appropriations 9,796 9,796 10,047 251 Budgetary Fund Balance, June 30 9,796 $ 9,796 $ 10,047 $ 251 $ 154

Page 359 of 1074 ends

CITY OF PALM DESERT
Budgetary Comparison Schedule
Art in Public Places
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,244,941 $ 1,244,941 $ 1,244,941 $ - $ Resources (Inflows):

Licenses and permits 328,275 328,275 571,716 243,441
Investment earnings 400 400 48,669 48,269
Miscellaneous 164,790 164,790 164,790 -
Amounts Available for Appropriations 1,738,406 1,738,406 2,030,116 291,710 Charges to Appropriation (Outflow):

Parks, recreation and culture 196,520 196,520 123,717 72,803 Capital outlay 593,390 915,390 532,954 382,436
Transfers out 120,000 120,000 70,806 49,194
Total Charges to Appropriations 909,910 1,231,910 727,477 504,433 Budgetary Fund Balance, June 30 828,496 $ 506,496 $ 1,302,639 $ 796,143 $ 155

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CITY OF PALM DESERT
Budgetary Comparison Schedule
Signalization
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 107,685 $ 107,685 $ 107,685 $ - $ Resources (Inflows):

Investment earnings 300 300 3,720 3,420
Amounts Available for Appropriations 107,985 107,985 111,405 3,420 Budgetary Fund Balance, June 30 107,985 $ 107,985 $ 111,405 $ 3,420 $ 156

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CITY OF PALM DESERT
Budgetary Comparison Schedule
Capital Golf
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 11,223,986 $ 11,223,986 $ 11,223,986 $ - $ Resources (Inflows):

Charges for services 2,587,864 2,587,864 2,587,864 -
Investment earnings 30,000 30,000 416,972 386,972
Amounts Available for Appropriations 13,841,850 13,841,850 14,228,822 386,972 Charges to Appropriation (Outflow):

Parks, recreation and culture 891,500 4,649,681 889,835 3,759,846 Total Charges to Appropriations 891,500 4,649,681 889,835 3,759,846 Budgetary Fund Balance, June 30 12,950,350 $ 9,192,169 $ 13,338,987 $ 4,146,818 $ 157

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CITY OF PALM DESERT
Budgetary Comparison Schedule
Buildings
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,550,266 $ 2,550,266 $ 2,550,266 $ - $ Resources (Inflows):

Investment earnings 5,000 5,000 89,036 84,036
Transfers in - 1,168,341 1,168,341 -
Amounts Available for Appropriations 2,555,266 3,723,607 3,807,643 84,036 Charges to Appropriation (Outflow):

General government - 150,792 296,969 (146,177)
Capital outlay 935,000 3,313,471 1,599,420 1,714,051
Total Charges to Appropriations 935,000 3,464,263 1,896,389 1,567,874 Budgetary Fund Balance, June 30 1,620,266 $ 259,344 $ 1,911,254 $ 1,651,910 $ 158

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OTHER GOVERNMENTAL FUNDS – DEBT SERVICE FUND
City Highlands Undergrounding Fund – This fund is used to account for the resources and payment for debt related to Highlands Undergrounding.
159

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CITY OF PALM DESERT
Balance Sheet
Other Debt Service Fund
Assets:

Pooled cash and investments $ 120,692
Receivables:

Assessments 1,076,523
Due from other governments 4,375
Total Assets $ 1,201,590
Deferred Inflows of Resources:

Unavailable revenues $ 1,076,523
Total Deferred Inflows of Resources 1,076,523
Fund Balances:

Restricted for:

Debt service 125,067
Total Fund Balances 125,067
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 1,201,590
City Highland
Undergrounding
June 30, 2023
160

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CITY OF PALM DESERT
Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Debt Service Fund
Year Ended June 30, 2023
Revenues:

Special assessments collected $ 128,760
Investment earnings 2,725
Total Revenues 131,485
Expenditures:

Current:

General government 1,814
Debt service:

Principal retirement 50,000
Interest and fiscal charges 54,310
Total Expenditures 106,124
Excess of Revenues Over
(Under) Expenditures 25,361
Net Changes in Fund Balances 25,361
Fund Balances, Beginning of Year 99,706
Fund Balances, End of Year $ 125,067
City
Highlands
Undergrounding
161

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CITY OF PALM DESERT
Budgetary Comparison Schedule
City Highland Undergrounding
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 99,706 $ 99,706 $ 99,706 $ - $ Resources (Inflows):

Special assessments collected 120,391 120,391 128,760 8,369 Investment earnings 100 100 2,725 2,625
Amounts Available for Appropriations 220,197 220,197 231,191 10,994 Charges to Appropriation (Outflow):

General government 16,684 16,684 1,814 14,870
Debt service:

Principal retirement 50,000 50,000 50,000 -
Interest and fiscal charges 54,310 54,310 54,310 -
Total Charges to Appropriations 120,994 120,994 106,124 14,870 Budgetary Fund Balance, June 30 99,203 $ 99,203 $ 125,067 $ 25,864 $ 162

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INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for services provided to other departments or agencies of the City on a cost reimbursement basis.

Equipment Replacement – This fund is used to account for financial transactions related to replacement of City-owned vehicles and equipment.

Compensation Benefits Fund – This fund is used to account for funding of compensated absences. 163

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CITY OF PALM DESERT
Combining Statement of Net Position
Internal Service Funds
Total
Assets:

Current Assets
Cash and investments $ 6,824,115 $ 2,328,629 $ 9,152,744 Prepaid costs 1,996 - 1,996
Total Current Assets 6,826,111 2,328,629 9,154,740
Capital Assets
Nondepreciable 11,821 - 11,821
Depreciable, net 2,597,637 2,597,637 -
Capital Assets, Net - 2,609,458 2,609,458
Total Assets 9,435,569 2,328,629 11,764,198
Liabilities:

Current Liabilities
Compensated absences - 500,000 500,000
Total Current Liabilities - 500,000 500,000
Noncurrent Liabilities:

Compensated absences 2,101,028 - 2,101,028
Total Noncurrent Liabilities 2,101,028 - 2,101,028
Total Liabilities 2,601,028 - 2,601,028
Net Position:

Invested in capital assets 2,609,458 2,609,458 -
Unrestricted 6,826,111 (272,399) 6,553,712
Total Net Position $ 9,435,569 $ (272,399) $ 9,163,170
June 30, 2023
Equipment
Replacement
Compensation
Benefits
164

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CITY OF PALM DESERT
Combining Statement of Revenues, Expenses
and Changes in Fund Net Position
Internal Service Funds
Total
Operating Expenses:

General and administrative - $ 425,084 $ 425,084 $
Maintenance and operations 394,955 - 394,955
Depreciation and amortization 751,260 - 751,260
Total Operating Expenses 1,146,215 425,084 1,571,299
Operating Loss (1,146,215) (425,084) (1,571,299)
Nonoperating Revenues (Expenses)
Interest income 209,556 76,734 286,290
Gain on disposal of capital assets 78,803 - 78,803
Total Nonoperating Revenues (Expenses) 288,359 76,734 365,093 Income (Loss) Before Capital Contributions & Transfers (857,856) (348,350) (1,206,206) Transfers In 860,000 101,289 961,289
Change in Net Position (247,061) 2,144 (244,917)
Net Position, Beginning of Year 9,433,425 (25,338) 9,408,087 Net Position, End of Year 9,435,569 $ (272,399) $ 9,163,170 $ Year Ended June 30, 2023
Equipment
Replacement
Compensation
Benefits
165

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CITY OF PALM DESERT
Combining Statement of Cash Flows
Internal Service Funds
Total
Cash Flows from Operating Activities:

Payments to suppliers (401,470) $ - $ (401,470) $
Cash paid to employees for services - (113,394) (113,394) Net Cash Used by Operating Activities (401,470) (113,394) (514,864) Cash Flows from Noncapital and
Related Financing Activities:

Cash received from other funds 860,000 101,289 961,289
Net Cash Provided by Noncapital and
Related Financing Activities 860,000 101,289 961,289
Cash Flows from Capital and
Related Financing Activities:

Purchases of capital assets (90,621) - (90,621)
Proceeds from sale of capital assets 86,265 - 86,265
Net Cash Used by Capital and
Related Financing Activities (4,356) - (4,356)
Cash Flows from Investing Activities:

Interest and dividends 209,556 76,734 286,290
Net Cash Provided by Investing Activities 209,556 76,734 286,290 Net Decrease
Cash and Cash Equivalents 663,730 64,629 728,359
Cash and Cash Equivalents, Beginning of Year 2,264,000 6,160,385 8,424,385 Cash and Cash Equivalents, End of Year 6,824,115 $ 2,328,629 $ 9,152,744 $ Reconciliation of Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:

Operating Income (Loss) $ (1,146,215) $ (425,084) $ (1,571,299) Adjustments to Reconcile Operating Loss to Net
Cash Provided (used) by Operating Activities:

Depreciation and amortization 751,260 - 751,260
(Increase) decrease in prepaid expense 4,150 - 4,150
Increase (decrease) in accounts payable (10,665) - (10,665) Increase (decrease) in compensated absences - 311,690 311,690 Total Adjustments 744,745 311,690 1,056,435
Net Cash Used by Operating Activities $ (401,470) $ (113,394) $ (514,864) Year Ended June 30, 2023
Equipment
Replacement
Compensation
Benefits
166

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CUSTODIAL FUNDS
Custodial Funds are used to account for assets held by the city as an custodian for individuals, private organizations, other governments and/or funds.

Retiree Service Stipend Fund – This fund is used to account for assets held to pay for the retiree service stipend.

Special Assessment Funds – These funds are used to account for the collection of special assessments and the future payment of debt service related to bonds issued. 167

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CITY OF PALM DESERT
All Custodial Funds
Totals
Assets:

Pooled cash and investments 2,956,059 $ 4,664,107 $ 7,620,166 $ Receivables:

Assessments - 35,481,134 35,481,134
Accrued interest - 699 699
Due from other governments - 24,995 24,995
Restricted assets:

Cash and investments with fiscal agents - 2,948,748 2,948,748 Total Assets 2,956,059 43,119,683 46,075,742
Liabilities:

Deposits payable - 35,481,134 35,481,134
Due to bondholders - 7,638,549 7,638,549
Total Liabilities - 43,119,683 43,119,683
Net Position:

Restricted for other purposes 2,956,059 - 2,956,059
Total Net Position $ 2,956,059 $ - $ 2,956,059
Combining Statement of Net Position
Retiree Service
Stipend Fund
Special
Assessment
Funds
June 30, 2023
168

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CITY OF PALM DESERT
Combining Statement of Changes in Fiduciary Net Position All Custodial Funds
Year Ended June 30, 2023
Additions:

Intergovernmental - $ 3,054,242 $ 3,054,242 $
Investment income 72,709 128,974 201,683
Contributions from City 834,654 - 834,654
Total Additions 907,363 3,183,216 4,090,579
Deductions
Administrative expenses - 50,179 50,179
Contractual services 834,654 381,793 1,216,447
Interest expense - 1,446,244 1,446,244
Debt service expense - 1,305,000 1,305,000
Total Deductions 834,65 4 3,183,216 4,017,870
Changes in Net Position 72,709 - 72,709
Net Position, Beginning of Year 2,883,350 7,790,756 10,674,106 Restatement (Note 15) (7,790,756) - (7,790,756)
Net Position, Beginning of Year, as Restated 2,883,350 2,883,350 - Net Position, End of Year $ 2,956,059 $ 2,956,059 - $
Retiree Service
Stipend Fund
Special
Assessment
Funds
Total Custodial
Funds
169

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170

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DESCRIPTION OF STATISTICAL SECTION CONTENTS
Year Ended June 30, 2023
This part of the City of Palm Desert’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the city’s overall financial health.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source.

Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it preforms.

Sources: Unless otherwise noted, the information in theses schedules is derived from the annual comprehensive financial reports for the relevant year. 171

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7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
172

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City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities 2023 2022 2021 2020 2019
Net Investment in capital assets 416,680,537 422,400,639 421,568,819 424,163,964 429,729,549 Restricted 172,531,052 164,636,470 197,082,889 196,858,726 200,536,233 Unrestricted 156,106,349 146,766,766 92,557,050 86,017,220 90,057,306 Total Governmental Activities Net Position 745,317,938 733,803,875 711,208,758 707,039,910 720,323,088 Business-Type Activities - - - - -
Net Investment in capital assets 69,239,563 67,327,809 67,981,326 68,394,059 69,070,734 Unrestricted 10,541,338 10,495,570 8,069,182 6,672,261 6,590,251 Total Business-type Activities Net Position 79,780,901 77,823,379 76,050,508 75,066,320 75,660,985 Primary Government
Net Investment in capital assets 485,920,100 489,728,448 489,550,145 492,558,023 498,800,283 Restricted 172,531,052 164,636,470 197,082,889 196,858,726 200,536,233 Unrestricted 166,647,687 157,262,336 100,626,232 92,689,481 96,647,557 Total Primary Government Net Position 825,098,839 811,627,254 787,259,266 782,106,230 795,984,073 Governmental Activities 2018 2017 2016 2015 2014
Net Investment in capital assets 438,184,070 449,037,170 459,644,720 473,722,694 466,246,732 Restricted 197,349,364 197,824,604 193,298,431 135,900,520 140,460,575 Unrestricted 83,054,707 87,091,894 78,812,066 71,530,456 105,537,785 Total Governmental Activities Net Position 718,588,141 733,953,668 731,755,217 (3) 681,153,670 (2) 712,245,092 Business-Type Activities -
Net Investment in capital assets 69,111,797 69,829,772 70,202,487 71,129,743 72,009,184 Restricted - - - - -
Unrestricted 5,609,843 4,829,456 4,479,575 4,302,958 3,920,382 Total Business-type Activities Net Position 74,721,640 74,659,228 74,682,062 75,432,701 75,929,566 Primary Government
Net Investment in capital assets 507,295,867 518,866,942 529,847,207 544,852,437 538,255,916 Restricted 197,349,364 197,824,604 193,298,431 135,900,520 140,460,575 Unrestricted 88,664,550 91,921,350 83,291,641 75,833,414 109,458,167 Total Primary Government Net Position 793,309,781 808,612,896 806,437,279 756,586,371 788,174,658 (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) The implementation of GASB Statement No. 68 and Statement No. 71 resulted in a prior year restatement decrease of $37.73 million in the governmental activities net positons.
(3) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. 173

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City of Palm Desert
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:

General government 26,185,065 24,738,040 25,610,212 24,297,715 23,252,576 Public safety 40,753,734 37,396,780 34,280,941 37,286,860 37,195,732 Housing & Redevelopment 13,251,192 9,626,399 10,496,579 8,802,290 9,067,858 Parks, recreation and culture 19,112,483 8,880,984 7,969,386 7,651,094 8,284,914 Public works 20,646,936 22,071,598 24,979,279 28,270,798 14,836,332 Payments to other agencies - 2,692 - - -
Interest on long term debt 143,521 148,079 176,259 203,183 231,228 Total Governmental activities Expenses 120,092,931 102,864,572 103,512,656 106,511,940 92,868,640 Business-Type Activities:

Desert Willow Golf Course 11,073,128 9,910,813 8,960,991 8,603,243 8,700,514 Office Complex - Parkview 1,409,321 951,353 872,212 856,196 874,753 Total Business-Type Activities 12,482,449 10,862,166 9,833,203 9,459,439 9,575,267 Total primary government expenses 132,575,380 113,726,738 113,345,859 115,971,379 102,443,907 Program Revenues
Governmental Activities
Charges for services
General government 2,678,135 2,901,226 2,437,840 2,343,116 2,645,724 Housing & Redevelopment 11,016,631 8,060,726 7,455,959 8,446,585 8,180,354 Public safety 18,831,126 17,506,658 18,828,021 16,429,810 14,503,741 Parks, recreation and culture 3,339,445 675,307 325,485 532,543 829,557 Public works 2,958,606 3,075,351 2,443,299 2,386,635 2,762,045 Operating grants & contributions 13,039,734 20,328,308 10,617,579 10,416,281 10,426,397 Capital grants & contributions 4,673,498 4,828,197 16,836,560 3,661,487 4,016,193 Total Governmental Activities Program Revenues 56,537,175 57,375,773 58,944,743 44,216,457 43,364,011 Business-Type Activities
Charges for Service:

Desert Willow Golf Course 12,159,419 11,068,847 9,171,607 7,099,985 8,743,654 Office Complex - Parkview 1,473,376 1,340,680 1,291,020 1,311,140 1,298,066 Capital grants & contributions 99,154 187,083 220,198 183,556 504,217 Total Business-type activities program revenue 13,731,949 12,596,610 10,682,825 8,594,681 10,545,937 Total Primary Government program revenue 70,269,124 69,972,383 69,627,568 52,811,138 53,909,948 Net (Expense) / Revenue
Governmental activities (63,555,756) (45,488,799) (44,567,913) (62,295,483) (49,504,629) Business-type activities 1,249,500 1,734,444 849,622 (864,758) 970,670 Total Primary Government Net Expense (62,306,256) (43,754,355) (43,718,291) (63,160,241) (48,533,959) General Revenues & Other Changes in Net Position
Governmental Activities:

Taxes: (Combined/Net Pass-through) 67,809,190 66,204,764 47,221,069 45,210,477 53,894,917 Investment Earnings 5,165,176 (1,971,646) 301,330 2,366,204 3,170,693 Gain(loss) on sales of capital assets 825,294 - - 80,490 7,452 Miscellaneous 1,250,480 3,850,798 1,214,362 1,355,134 1,396,514 Special Item (3) - - - - (7,530,000)
Transfers In / (Out) - - - - 300,000
Gain on Transfer to Successor Agency/ Extraordinary Gain (2) - - - - - Total Governmental activities Net Revenues 75,050,140 68,083,916 48,736,761 49,012,305 51,239,576 Business-Type Activities:

Investment Earnings 450,279 (99,994) 20,283 159,115 181,310 Gain(loss) on sales of capital assets - - - - 87,365
Miscellaneous 257,743 138,421 114,283 110,978 -
Transfers Out - - - - (300,000)
Total Business-type activities 708,022 38,427 134,566 270,093 (31,325) Total primary government 75,758,162 68,122,343 48,871,327 49,282,398 51,208,251 Change in Net Position
Governmental Activities: 11,494,384 22,595,117 4,168,848 (13,283,178) 1,734,947 Business-Type Activities: 1,957,522 1,772,871 984,188 (594,665) 939,345 Total primary government 13,451,906 24,367,988 5,153,036 (13,877,843) 2,674,292 (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency.

Expenses 2023 2022 2021 2020 2019
174

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City of Palm Desert
Changes in Net Position
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:

General government 18,467,097 15,708,054 14,836,881 16,337,393 19,194,343 Public safety 36,543,050 34,943,220 34,009,984 32,077,635 29,339,106 Housing & Redevelopment 9,605,756 10,954,630 8,162,859 11,666,724 7,852,611 Parks, recreation and culture 8,240,115 9,850,200 9,223,126 8,598,242 8,327,402 Public works 18,358,907 14,892,145 47,044,197 19,144,213 21,123,197 Payments to other agencies - - - - -
Interest on long term debt 259,250 271,603 289,000 294,258 237,053 Total Governmental Activities Expenses 91,474,175 86,619,852 113,566,047 88,118,465 86,073,712 Business-Type Activities:

Desert Willow Golf Course 8,763,220 8,243,515 8,165,183 8,433,267 8,452,001 Office Complex - Parkview 930,815 893,125 1,005,918 934,296 922,341 Total Business-Type Activities 9,694,035 9,136,640 9,171,101 9,367,563 9,374,342 Total primary government expenses 101,168,210 95,756,492 122,737,148 97,486,028 95,448,054 Program Revenues
Governmental Activities
Charges for services
General government 2,388,260 2,095,648 2,185,123 2,088,393 2,152,280 Housing & Redevelopment 7,551,760 6,861,450 7,029,595 7,971,265 6,851,603 Public safety 10,801,436 10,603,708 10,606,464 9,987,891 10,239,886 Parks, recreation and culture 821,824 793,527 772,801 772,728 729,076 Public works 2,685,831 2,327,521 2,186,153 1,832,241 2,180,877 Operating grants & contributions 8,555,881 7,931,900 9,496,520 7,512,894 9,745,609 Capital grants & contributions 2,442,621 7,710,355 10,839,715 19,297,015 21,086,051 Total Governmental Activities Program Revenues 35,247,613 38,324,109 43,116,371 49,462,427 52,985,382 Business-Type Activities
Charges for Service:

Desert Willow Golf Course 8,432,273 7,497,664 7,240,866 7,894,676 7,804,904 Office Complex - Parkview 1,250,456 1,284,462 1,280,230 1,306,042 1,254,521 Capital grants & contributions 167,670 605,186 111,942 47,768 94,076 Total Business-type activities program revenue 9,850,399 9,387,312 8,633,038 9,248,486 9,153,501 Total Primary Government program revenue 45,098,012 47,711,421 51,749,409 58,710,913 62,138,883 Net (Expense) / Revenue
Governmental Activities (56,226,562) (48,295,743) (70,449,676) (38,656,038) (33,088,330) Business-type activities 156,364 250,672 (538,063) (119,077) (220,841) Total Primary Government Net Expense (56,070,198) (48,045,071) (70,987,739) (38,775,115) (33,309,171) General Revenues & Other Changes in Net Position
Governmental Activities:

Taxes: (Combined/Net Pass-through) 50,150,650 47,628,454 44,747,151 41,931,997 39,952,738 Investment Earnings 1,901,536 1,041,232 2,074,934 494,452 358,674 Contributions not restricted for specific purpose - - - - - Gain(loss) on sales of assets 17,274 2,145 24,292 11,720 488,319 Miscellaneous 1,573,106 1,522,363 1,828,677 1,726,007 1,994,506 Special Item (3) - - - - -
Transfers In / (Out) 300,000 300,000 237,500 437,500 437,500 Gain on Transfer to Successor Agency/Extraordinary Gain (2) - - 72,138,669 - - Total Governmental Activities Net Revenues 53,942,566 50,494,194 121,051,223 44,601,676 43,231,737 Business-Type Activities:

Investment Earnings 74,873 26,494 24,924 11,774 13,646
Gain(loss) on sales of capital assets 131,175 - - 47,938 - Miscellaneous - - - - -
Transfers Out (300,000) (300,000) (237,500) (437,500) (437,500) Total Business-type activities (93,952) (273,506) (212,576) (377,788) (423,854) Total primary government 53,848,614 50,220,688 120,838,647 44,223,888 42,807,883 Change in Net Position
Governmental Activities: (2,283,996) 2,198,451 50,601,547 5,945,638 10,143,407 Business-Type Activities: 62,412 (22,834) (750,639) (496,865) (644,695) Total primary government (2,221,584) 2,175,617 49,850,908 5,448,773 9,498,712 (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency.

Expenses 2018 2017 2016 2015 2014
175

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City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund: 2023 2022 2021 2020 2019
Nonspendable 3,501,822 4,050,414 4,178,180 7,196,092 10,559,396 Committed 83,424,843 82,741,109 73,856,851 66,012,415 63,197,223 Assigned 19,282,496 18,238,107 16,696,825 16,196,564 15,964,130 Unassigned 14,707,351 32,645,330 5,681,608 3,473,480 3,322,321 Total General Fund 120,916,512 137,674,960 100,413,464 92,878,551 93,043,070 All other Governmental Funds:

Nonspendable 51,657 19,591 18,427 15,705 193,189
Restricted 172,531,603 164,636,470 168,368,520 168,806,454 175,780,733 Committed 15,568,245 15,761,482 16,312,379 16,275,373 16,247,652 Assigned 32,522,600 28,078,039 27,459,735 27,133,815 21,238,271 Unassigned - (126,614) - - -
Total all other Governmental Funds 220,674,105 208,368,968 212,159,061 212,231,347 213,459,845 General Fund: 2018 2017 2016 2015 2014
Nonspendable 10,509,094 9,067,979 9,528,630 10,312,261 7,745,320 Committed 59,666,638 - - - -
Assigned 15,492,508 658,817 991,853 1,771,278 4,425,423 Unassigned 4,702,308 74,259,748 71,842,172 67,727,130 66,203,203 Total General Fund 90,370,548 83,986,544 82,362,655 79,810,669 78,373,946 All other Governmental Funds:

Nonspendable 1,726 1,276 3,052 348 6,713
Restricted 169,549,126 171,044,474 165,411,544 (3) 106,261,212 114,194,435 Committed 16,751,821 16,771,055 16,873,834 16,952,887 21,644,068 Assigned 23,258,063 23,250,337 24,172,531 24,429,824
Unassigned - - - - -
Total all other Governmental Funds 209,560,736 211,067,142 182,288,430 147,386,978 160,275,040 (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds. (3) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. 177

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City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues: 2023 2022 2021 2020 2019
Taxes 86,687,919 84,037,191 65,209,322 59,635,918 67,102,185 Special assessments collected 3,618,972 3,407,107 3,381,657 3,481,924 3,948,157 Licenses & permits 3,111,176 2,622,695 1,504,694 1,268,965 1,416,829 Intergovernmental revenues 6,711,363 12,300,071 20,136,679 6,401,926 6,194,152 Rental income 8,958,960 8,129,025 7,320,419 7,071,648 6,899,916 Charges for services 8,743,794 6,175,500 4,889,634 5,272,577 5,223,285 Investment Earnings 12,129,730 (2,402,801) 1,298,728 10,311,159 7,166,097 Fines & forfeitures 127,087 105,198 147,671 127,801 273,434 Miscellaneous 852,153 7,340,808 3,776,838 4,741,905 2,892,940 Contributions from other government 1,974,653 - - - -
Total Revenues 130,941,154 123,689,447 107,665,642 98,313,823 101,116,995 Expenditures:

General government 24,896,946 24,079,563 23,478,543 21,468,512 24,269,546 Housing & redevelopment 10,310,551 8,232,440 8,839,559 7,090,941 7,504,119 Public safety 40,660,248 37,322,951 34,035,102 37,021,952 36,901,283 Parks, recreation & culture 17,708,634 7,439,687 6,073,015 5,902,166 6,497,391 Public works 15,287,888 17,667,805 18,533,419 21,994,806 8,728,354 Capital outlay 7,835,762 12,110,677 7,840,438 5,117,968 3,396,511 Debt service:

Principal retirement 263,809 2,294,052 174,000 225,000 587,000 Interest and fiscal charges 135,903 157,462 184,529 210,292 244,050 Total Expenditures 117,099,741 109,304,637 99,158,605 99,031,637 88,128,254 Excess(deficiency of Revenues
over(under) expenditures 13,841,413 14,384,810 8,507,037 (717,814) 12,988,741 Other financing sources (uses)
Transfers in 26,746,473 11,555,402 10,186,341 10,702,762 5,319,448 Transfers out (27,707,762) (11,864,512) (11,230,751) (11,377,965) (5,736,558) Special Item (3) - - - (6,000,000) -
Extraordinary Gain / (Loss) (2) 2,603,284 - - - -
Sale of property (88,163) (1,001,688) - - -
Proceeds from subscriptions 529,156 - - - -
Total Other financing sources (uses) (520,296) 1,292,486 (1,044,410) (675,203) (6,417,110) Net Change In Fund Balance 13,321,117 15,677,296 7,462,627 (1,393,017) 6,571,631 Revenues: 2018 2017 2016 2015 2014
Taxes 61,906,859 59,466,545 56,735,503 52,571,369 50,464,511 Special assessments collected 3,445,246 3,318,114 3,296,705 3,058,766 3,486,220 Licenses & permits 1,326,049 1,678,709 2,057,843 1,757,250 2,262,907 Intergovernmental revenues 5,682,704 7,249,515 15,429,238 18,981,304 7,380,744 Rental income 6,675,632 6,439,458 5,896,480 5,660,762 5,626,850 Charges for services 2,894,821 2,356,363 2,082,843 1,819,464 2,165,020 Investment Earnings 3,626,892 2,086,224 1,837,319 1,242,662 864,853 Fines & forfeitures 162,370 135,276 295,269 224,612 231,768 Miscellaneous 2,886,542 2,594,433 2,317,499 2,377,923 3,539,552 Contributions from other government 3,550,991 - - 10,749,218 9,168 Contributions from property owners - - 7,868 420,590 -
Total Revenues 88,607,115 88,875,628 89,956,567 87,703,280 87,192,233 Expenditures:

General government 19,281,102 16,887,293 15,783,955 15,467,746 17,070,816 Housing & redevelopment 8,522,801 9,239,680 6,438,849 9,349,021 6,650,178 Pass-through-agreement - - - - -
Public safety 36,247,656 34,674,418 33,750,347 31,819,214 29,139,735 Parks, recreation & culture 6,467,713 7,157,821 6,831,534 6,236,717 5,802,941 Public works 12,183,852 8,794,894 11,031,584 13,082,388 12,741,764 Contributions to property owners - 19,584,487 - 2,350,187 49 Capital outlay 915,422 2,169,035 7,071,738 19,339,987 6,273,822 Debt service:

Principal retirement 150,000 237,000 257,000 4,944,000 674,000 Interest and fiscal charges 260,971 277,814 296,336 240,219 242,495 Total Expenditures 84,029,517 79,437,955 101,045,830 100,479,341 80,945,938 Excess(deficiency of Revenues
over(under) expenditures 4,577,598 9,437,673 (11,089,263) (12,776,061) 6,246,295 Other financing sources (uses)
Transfers in 6,613,352 9,406,888 6,030,706 6,132,859 4,861,551 Transfers out (6,313,352) (12,218,428) (6,075,206) (6,971,359) (5,424,051) Special Item (3) - - - - -
Extraordinary Gain / (Loss) (2) - 72,138,669 - - -
Sale of property - 225,000 - 2,163,222 911,001
Proceeds from subscriptions - - - - -
Total Other financing sources (uses) 300,000 (2,811,540) 72,319,169 1,324,722 348,501 Net Change In Fund Balance 4,877,598 6,626,133 61,229,906 (11,451,339) 6,594,796

0.7% 0.6% 1.2%
(1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.

For more information on the dissolution of the RDA please see Note 16 and 17. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency.

Debt service as a percentage of noncapital expenditures Debt service as a percentage of noncapital expenditures

0.5% 6.4%

0.4% 2.5% 0.4% 0.5% 1.0%
178

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City of Palm Desert
Graphs - Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(1) Combined Other is a combination of rental income, investment earnings, and charges for services. (2) Miscellaneous Other is a combination of fines and forfeitures, miscellaneous, contributions from other governments, and contributions from property owners. (3) Debt Expenditures is a combination of interest/fiscal charges and principal retirement . (4) Public works is a combination of public works and contributions to property owners.

Note: Graphs excludes Other financing sources and uses. $0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015FY 2014 Total Revenues
Combined other (1)
Miscellaneous other (2)
Intergovernmental
revenues
Licenses & permits
Taxes & Special
Assessments
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015FY 2014 Total Expenditures
Parks, recreation & culture
Pass-through-agreement
Debt Expenditures (3)
Capital outlay
Public works (4)
Public safety
Housing & Redevelopment
General Government
- 179

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City of Palm Desert
Supplemental - Historical General Fund Revenues
(including Transfers In)
Last Ten Fiscal Years
FY 2023 2022 2021 2020 2019
Revenue Type:

Sales Tax $ 26,193,390 26,354,774 $ 21,156,220 $ 18,445,806 $ 21,434,387 $ Transient Occupancy Tax 22,098,939 23,825,410 10,760,455 11,681,583 17,250,843 Property Tax (3) 11,703,419 12,952,007 11,193,276 11,101,584 11,074,207 Investment Earnings (1,867,595) 5,025,534 284,744 4,181,814 2,672,643 Transfer In 3,774,873 2,478,731 3,515,966 2,472,976 937,202 Franchises 3,334,555 3,574,273 3,066,989 3,025,984 3,078,855 State Subventions (1) (3) 146,957 127,546 38,945 60,593 82,722 Building & Grading Permits 2,079,314 2,290,974 1,195,893 953,176 1,064,071 Reimbursements (4) 530,474 1,464,230 1,229,484 1,375,770 1,468,351 Business License Tax 1,326,920 1,139,514 962,940 1,038,137 1,216,712 Timeshare Mitigation Fee 1,555,137 1,711,324 1,501,625 1,467,905 1,678,375 Plan Check Fees 644,448 616,576 480,881 468,180 619,763 Property Transfer Tax 934,735 1,197,951 1,027,833 566,468 727,978 Other Revenues (2) 8,337,209 3,581,082 8,072,509 3,130,862 2,352,803 Total General Revenue $ 81,008,708 86,123,993 $ 64,487,760 $ 59,970,838 $ 65,658,912 $ FY 2018 2017 2016 2015 2014
Revenue Type:

Sales Tax $ 18,505,449 18,627,704 $ 18,994,779 $ 17,565,134 $ 17,258,958 $ Transient Occupancy Tax 15,054,259 17,019,034 11,252,997 10,799,680 9,855,509 Property Tax (3) 10,157,813 10,777,998 10,461,595 9,710,990 9,041,428 Investment Earnings 644,341 1,237,562 725,015 416,656 405,456 Transfer In 1,472,852 1,610,830 1,390,258 2,179,472 1,373,786 Franchises 3,146,702 3,097,521 3,095,873 3,102,431 3,007,215 State Subventions (1) (3) 23,101 38,876 59,317 155,049 22,089 Building & Grading Permits 1,247,390 1,048,973 1,216,115 1,279,706 1,695,303 Reimbursements (4) 1,407,811 1,388,654 1,589,511 1,604,707 1,809,323 Business License Tax 1,118,183 1,154,275 1,269,082 1,160,207 1,169,316 Timeshare Mitigation Fee 1,467,028 1,543,762 1,500,683 1,483,158 1,333,586 Plan Check Fees 691,096 431,115 592,818 505,370 662,893 Property Transfer Tax 664,822 690,975 491,060 558,965 530,556 Other Revenues (2) 2,185,703 1,951,122 2,189,063 1,713,758 1,932,009 Total General Revenue $ 57,552,722 60,852,229 $ 54,828,166 $ 52,235,283 $ 50,097,427 $ (1) State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. (2) Other Revenues is any combination of miscellaneous penalties and interest, permits, grants, parking bails, fees, sales of maps and publications, vehicle and court fines, rental income, other revenues and Federal ARPA-Covid19. (3) The State of California reprogramed motor vehicle fees, the City now receives this as property taxes. (4) Reimbursements is a combination of RDA costs and other reimbursements, due to dissolution in February 2012 the RDA reimbursement is limited and applies to existing projects.
180

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City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
(1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants, incomes, penalties, permits, sales and taxes.
*State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state.
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Combined Other (1)
Interest
Property Tax
Transient Occupancy
Tax
181

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City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY 2023 2022 2021 2020 2019
Expenditure:

Public Safety (1) $ 20,288,195 23,304,557 $ 19,326,751 $ 21,415,334 $ 20,975,032 $ City Administration (2) 12,620,102 14,202,930 12,990,562 11,429,468 12,521,081 Public Works Administration 2,265,476 3,026,733 1,886,402 2,457,045 2,149,715 Community Promotions 1,216,272 1,347,204 420,424 947,370 1,249,674 Street Maintenance 2,421,966 2,156,583 2,317,468 2,212,933 2,185,648 Building Safety 1,751,817 1,366,067 1,461,477 1,661,372 1,828,083 Street Resurfacing - - - - -
Public Works (4) 1,338,520 3,852,469 1,165,671 1,151,447 1,250,969 Other Expenditures (3) 18,572,299 35,851,470 17,384,092 18,860,388 20,826,188 Total Expenditures $ 60,474,647 85,108,013 $ 56,952,847 $ 60,135,357 $ 62,986,390 $ FY 2018 2017 2016 2015 2014
Expenditure:

Public Safety (1) $ 20,424,249 21,088,867 $ 20,151,237 $ 18,784,117 $ 17,306,342 $ City Administration (2) 8,238,228 11,460,325 7,971,706 7,561,255 7,413,578 Public Works Administration 2,637,630 2,333,897 2,664,871 2,645,443 2,556,967 Community Promotions 1,062,611 1,179,305 791,565 749,631 618,138 Street Maintenance 2,418,451 2,020,797 2,709,328 2,631,590 2,806,168 Building Safety 1,849,442 1,579,734 1,888,290 1,847,798 1,783,918 Street Resurfacing 25,326 2,760 1,083,919 998,463 4,466 Public Works (4) 970,877 1,133,007 1,004,989 1,067,837 1,018,435 Other Expenditures (3) 18,302,019 13,669,533 14,010,275 14,512,426 14,430,399 Total Expenditures $ 55,928,833 54,468,225 $ 52,276,180 $ 50,798,560 $ 47,938,411 $ (1) Public Safety is any combination of animal regulation, police services, community safety and traffic safety expenditures, this does not include the cost for Fire Services. Fire Services are reported in a different fund. (2) City Administration is any combination of community services, independent audit, City attorney, City clerk, City council, City manager, information technology, elections, finance, general services, human resources, insurance, legal special services, legislative advocacy and unemployment insurance expenditures. (3) Other Expenditures is any combination of acquisitions, committees, contributions, retiree health, planning & community development, economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, capital outlay, special item, included in the transfer out is transfer to the Fire fund for its shortfall. (4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard, public building maintenance, Portola Community center, storm water permit. 182

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City of Palm Desert
Supplemental Graph- Historical General Fund Expenditures (Including Transfers Out)
Last Ten Fiscal Years
(1) Public Safety is any combination of animal regulation, police services, community safety and traffic safety expenditures, this does not include the cost for Fire Services. Fire Services are reported in a different fund. (2) City Administration is any combination of community services, independent audit, City attorney, City clerk, City council, City manager, information technology, elections, finance, general services, human resources, insurance, legal special services, legislative advocacy and unemployment insurance expenditures. (3) Other Expenditures is any combination of acquisitions, committees, contributions, retiree health, planning & community development, economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, capital outlay, special item, included in the transfer out is transfer to the Fire fund for its shortfall. (4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard, public building maintenance, Portola Community center, storm water permit. $0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Other Expenditures Comb
(3)
Public Works (4)
City Administration (2)
Public Safety (1)
183

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City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita Last Ten Fiscal Years
FY 2023 2022 2021 2020 2019
Total General Revenue (2) $ 77,168,851 86,123,993 $ 60,971,794 $ 57,497,862 $ 64,721,710 $ Population (1) 50,889 50,615 53,892 52,986 53,625
General Revenue Per Capita 1,516 1,702 1,131 1,085 1,207 FY 2018 2017 2016 2015 2014
Total General Revenue (2) $ 56,079,870 59,241,399 $ 53,437,908 $ 50,055,811 $ 48,723,641 $ Population (1) 50,740 52,769 49,335 51,053 50,417
General Revenue Per Capita 1,105 1,123 1,083 980 $ 966 $ FY 2023 2022 2021 2020 2019
Total General Expenditures (2) $ 52,730,364 85,108,013 $ 49,481,094 $ 51,498,878 $ 57,900,932 $ Population (1) 50,889 50,615 53,892 52,986 53,625
General Expenditures Per
Capita 1,036 1,681 918 972 1,080
FY 2018 2017 2016 2015 2014
Total General Expenditures (2) $ 48,427,111 49,992,388 $ 48,134,252 $ 46,302,187 $ 44,183,659 $ Population (1) 50,740 52,769 49,335 51,053 50,417
General Expenditures Per
Capita 954 947 976 907 $ 876 $
(1) Population figures are as of January start of fiscal year. (2) Interfund Transfers In/Out, extraordinary loss (gain), and special item are not included in total.

Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department 184

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City of Palm Desert
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year
Ended June 30
Residential
Property
Commercial
Industrial
Property
Institutional
Property Vacant Land Less: Tax
Exempt
Total Taxable
Assessed Value
Total Direct
Tax Rate
Estimated Actual
Taxable Value (1)
2023 13,770,177,817 3,039,934,131 72,379,384 271,422,690 * - 18,094,846,015 1.00000 17,895,334,799 2022 12,816,062,846 2,919,685,840 67,899,671 254,623,765 * - 16,974,917,677 1.00000 16,768,080,495 2021 12,277,100,484 2,872,316,290 65,652,944 279,025,011 * - 16,413,235,941 1.00000 16,217,619,993 2020 11,781,804,552 2,771,257,791 63,343,035 300,879,417 * (45,437) 15,835,758,806 1.00000 15,636,583,844 2019 11,231,546,199 2,675,659,205 62,224,633 373,347,796 (326,679,322) 15,556,158,170 1.00000 15,045,226,485 2018 10,757,283,204 2,554,854,761 59,762,684 388,457,449 (313,754,093) 14,940,671,116 1.00000 14,445,331,683 2017 10,555,732,091 2,434,816,656 58,318,962 379,073,252 (306,174,550) 14,579,740,457 1.00000 14,095,158,994 2016 10,174,360,142 2,358,860,033 56,840,001 412,090,006 (312,620,004) 14,210,000,198 1.00000 13,743,682,041 2015 9,636,181,445 2,290,456,630 54,211,991 420,142,932 (298,165,952) 13,552,997,813 1.00000 13,086,962,905 2014 9,043,372,632 2,247,924,054 64,595,519 426,330,424 (297,139,386) 12,919,103,760 1.00000 12,453,921,285 (1) Estimated Actual Taxable Value = Net Taxable Value
* Per HDL there was an artifact change in the Riverside County Assessors data that occurred primarily between 2018 and 2019, new vs old system differences, the few properties which are listed as having asssessed value and being non-taxable are either new to the roll or are newly non-taxable for 2019.

Notes: Property Taxes in Riverside County are subject to the State of California's Proposition 13, Jarvis-Gann Initiative which allows reappraisals of real property only when there is a change in ownership or new construction takes place. Further, the proposition limits property assessment increase to no more than two(2%) percent annually. Property is assessed at one hundred percent (100%) of its fair market value at the time of new construction or change in ownership.

The tax rate is one (1%) percent of the assessed value.

Source: Riverside County Assessor thru HDL Coren & Cone 185

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City of Palm Desert
Historical Net Assessed Taxable Values Citywide
Graph - Assessed Valuation Growth
Last Ten Fiscal Years
i honestly imagine it being a little
Historical Major Additions
Annexations FY Retail Centers FY
Cook Street Area 88/89 Town Center Mall 83/84
Country Club #28 93/94 Desert Springs Marriott 86/87
Price Club/Costco 93/94 One Eleven Town Ctr 88/89
Palm Desert CC #29 94/95 Mervyn's Center 92/93
Palm Desert Greens 04/05 Desert Crossing 95/96
Suncrest 04/05 Lucky's/Albertson Deep Canyon 96/97
Remodel 111 Town Ctr (Best Buy) 97/98
Gardens on El Paseo 98/99
Remodel Westfield Mall (Sears, Barnes & Noble) 04/05
Sears Automotive 04/05
Lowes Home Improvement 05/06
Walmart / Sam's Supercenters 05/06
Kohl's 07/08
Golfsmith Extreme 08/09
El Paseo Village 09/10
Best Buy & Ulta 11/12
Remodel Westfield Mall (Dick's/H&M/Restaurants) 12/13
PGA Tour Superstore 12/13
Total Wine & More 13/14
Tesla Motors 15/16
Source: Riverside County Assessor thru HDL Coren & Cone

3.22% 5.08% 5.02%

2.56% 2.48%

4.15% 3.93%

3.72% 3.39%

6.72%
-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Percent Increase in Assessed Valuation
FY 2014 to FY 2023
$-
$5,000
$10,000
$15,000
$20,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Value in Millions
Net Assessed Valuation - Historical Comparison
FY 2014 to FY 2023
186

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City of Palm Desert
Supplemental FY 2023 and 2022 Breakdown of Basic 1% Property Tax Rate Not in Redevelopment Project Area
Taxing Agency FY 2023 Rate FY 2022 Rate
County General 28.177327% 28.177327%
County Free Library 2.728242% 2.728242%
County Structure Fire Protection 5.873086% 5.873086%
City of Palm Desert (1) 0.000000% 0.000000%
Desert Sands Unified School District 36.221587% 36.221587% Desert Community College 7.526714% 7.526714%
Riverside County Reg. Park & Open Space 0.426231% 0.426231% Riverside County Office of Education 4.094919% 4.094919% Desert Hospital 1.996808% 1.996808%
Coachella Valley Public Cemetery 0.339927% 0.339927%
Desert Recreation District 2.071624% 2.071624%
Coachella Valley Mosquito & Vector Control 1.369698% 1.369698% Coachella Valley County Water 2.736607% 2.736607%
Coachella Valley County Water Imp. District 80 2.972906% 2.972906% Coachella Valley County Water Storm Water Unit 3.464324% 3.464324% General Purpose Basic 1% 100.000000% 100.000000%
(1) City of Palm Desert is a No-Low Property Tax City and the 7% represents what the state allocates to No-Low Property Tax Cities.

Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-041. 187

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City of Palm Desert
Property Tax Rates
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Fiscal
Year
Basic
County-wide
Levy
Total
Direct Tax
Rate
Desert Sands
Unified School
District
Desert
Community
College Dist.

Coachella
Valley Water
District
Coachella
Valley Water
District I.D. 58
Palm Springs
Unified B&I
1192-A Ds
2023 1.00000 1.00000 0.07500 0.03950 0.11000 0.00000 0.15187 2022 1.00000 1.00000 0.07500 0.03950 0.11000 0.00000 0.15030 2021 1.00000 1.00000 0.07390 0.03947 0.10000 0.00000 0.10334 2020 1.00000 1.00000 0.07381 0.03983 0.10000 0.00000 0.10542 2019 1.00000 1.00000 0.07418 0.03978 0.10000 0.00000 0.10603 2018 1.00000 1.00000 0.07251 0.04030 0.10000 0.00000 0.11146 2017 1.00000 1.00000 0.08599 0.02036 0.10000 0.00000 0.11802 2016 1.00000 1.00000 0.10915 0.02087 0.10000 0.00000 0.08978 2015 1.00000 1.00000 0.10984 0.02325 0.10000 0.00000 0.10160 2014 1.00000 1.00000 0.10954 0.01995 0.10000 0.00000 0.12961 Notes: Proposition 13 limits the ability of the city to raise the property tax rate.

Source: CalMuni Statistics Inc
City Direct Overlapping Rates
188

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City of Palm Desert
Principal Property Taxpayers
Current and Ten Years Ago
2023 2014
Taxpayer Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
Taxpayer Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
NEWAGE DesertSprings 183,277,948 $ 1.02% WEA Palm Desert $ 144,890,985 1.16% WEA Palm Desert 167,598,620 0.93% Marriott Desert Springs 136,022,554 1.09% Gardens on El Paseo LLC 146,001,786 0.81% Gardens on El Paseo LLC 100,463,843 0.80%
WVC Rancho Mirage Inc 134,387,296 0.75% WVC Rancho Mirage 84,971,489 0.68% PRU Desert Crossing LLC 107,432,299 0.60% Pru Desert Crossing II LLC 81,024,967 0.65%
CC Cimarron LP 71,394,568 0.40% Sinatra and Cook Project 54,874,399 0.44% First American Trust 63,108,340 0.35% Walmart Real Estate Business Trust 48,324,981 0.39%
Walmart /Sams 58,460,349 0.33% Segovia Operations 47,715,576 0.38% Segovia Operations 55,777,259 0.31% Monarch Sevilla Venture 47,671,183 0.38% Sunrise Spectrum 54,306,893 0.00% Sunrise Spectrum 46,907,800 0.38% Total $ 1,041,745,358 5.80% Total $ 792,867,777 6.35%
Note: The estimated property tax revenue stated above is based upon net taxable values, tax ratios and base year values that impact the revenue calculation. As a result, parcels with the same assessed value that are assigned to different tax rate areas may contribute dissimilar amounts of total revenue to the City and Redevelopment Agency.

Source: HdL Coren & Cone thru Riverside County Assessor 22/23 and HdL Coren & Cone thru Riverside County Assessor 13/14 189

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City of Palm Desert
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years (3) Amount (3)(4) of Levy 2014 5,623,740 5,048,787 89.78% 574,953 5,623,740 $ 100.00% 2015 5,911,501 5,523,658 93.44% 387,843 5,911,501 $ 100.00% 2016 6,212,993 5,943,252 95.66% 269,741 6,212,993 $ 100.00% 2017 6,731,899 6,022,566 89.46% 182,652 6,205,218 $ 92.18% 2018 6,729,952 6,553,297 97.38% 173,642 6,726,940 $ 99.96% 2019 6,867,405 6,640,656 96.70% 207,894 6,848,550 $ 99.73% 2020 7,202,939 6,502,032 90.27% 211,602 6,713,634 $ 93.21% 2021 7,332,966 6,391,062 87.16% 256,431 6,647,493 $ 90.65% 2022 8,203,212 7,930,195 96.67% 273,017 8,203,212 $ 100.00% 2023 8,853,225 8,320,643 93.98% 532,582 8,853,225 $ 100.00% (1) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. The first payment was received in the fiscal year 1993/94.
(2) City of Palm Desert is a "No-Low Property Tax City". Proposition 13 rolled the tax rates back to 1973 which is when the City of Palm Desert incorporated and the Property Tax rates were zero.

Based on current state law the County allocates 7% of the 1% assessed values within the City less the Redevelopment Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes. (3) Includes tax collections accrued as of June 30, 2023. (4) Includes amounts receivable for tax year 2022-2023 along with prior receivables due for prior tax years.

Source: Riverside County Auditor Controller Office and City of Palm Desert Collected within the
Fiscal Year of the Levy (1) (2)
Total Collections to Date
190

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City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30, 2023
Top 25 Sales Tax Generators (1) Primary Economic Category

ABC SUPPLY COMPANY BUILDING MATERIALS

ALBERTSON'S FOOD CENTERS GROCERY STORES

APPLE INC ELECTRONICS/APPLIANCE STORES

ARIZONA TILE HOME FURNISHINGS

ASHLEY FURNITURE HOMESTORE HOME FURNISHINGS

BEST BUY STORES LP ELECTRONICS/APPLIANCE STORES

CARMAX AUTO SUPERSTORES USED AUTOMOTIVE DEALERS

CIRCLE K CONVENIENCE STORES/LIQUOR

CONSOLIDATED ELECTRICAL DISTRIBUTORS PLUMBING/ELECTRICAL SUPPLIES

COSTCO DISCOUNT DEPT STORES

JW MARRIOTT DESERT SPRINGS HOTELS/MOTELS

LEEDS JEWELERS JEWELRY STORES

LOUIS VUITTON FAMILY APPAREL

LOWES BUILDING MATERIALS

MACY'S DEPARTMENT STORES DEPARTMENT STORES

NORDSTROM RACK DEPARTMENT STORES

PGA TOUR SUPERSTORE SPORTING GOODS/BIKE STORES

SAKS FIFTH AVENUE DEPARTMENT STORES

SAM'S CLUB WITH FUEL DISCOUNT DEPT STORES

SIMPLOT GARDEN/AGRICULTURAL SUPPLIES

SUPERIOR POOL PRODUCTS DRUGS/CHEMICALS

TARGET STORES DISCOUNT DEPT STORES

TOMMY BAHAMA FAMILY APPAREL

TOTAL WINE & MORE CONVENIENCE STORES/LIQUOR

WAL-MART SUPERCENTER DISCOUNT DEPT STORES
(1) Listed in Alphabetical Order
Note : Current California law prohibits production of individual tax information as an effort not to infringe on proprietary information, therefore confidential information which is protected by law is not disclosed. * The State of California exchanged Sales Tax Revenue with Property taxes, this amount represents the portion of sales tax that were exchanged.

Source: SBOE Data, MuniServices LLC. In Lieu given to city from State ERAF Property Taxes, City of Palm Desert $7.0
$9.0
$11.0
$13.0
$15.0
$17.0
$19.0
$21.0
$23.0
$25.0
$27.0
$29.0
2014201520162017201820192020202120222023
Millions
Sales and Use Tax Trends FY 2014 - 2023
-2.57% 0.66%

15.1%
-13.9%

23.8%

1.8%

0.6%
Amounts
in Millions
% = % Change from Prior Year

8.1%
$17.258 $17.564 $18.994 $18.505 $18.627 $21.434 $18.445 $21.156 $26.193 $26.354 -In Lieu * 14.7%

2.9%
191

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City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Special Assessment/ Total Percentage Total Debt
Fiscal Local Obligation Capital Primary of Total Personal Per Year Bonds b,c,d Leases Government Income a,f Capita a,f 2014 8,246,000 1,222,915 9,468,915 0.39% 198
2015 3,302,000 e 4,737,046 1,435,046 0.19% 99
2016 3,045,000 929,860 3,974,860 0.16% 83
2017 2,808,000 499,881 3,307,881 0.14% 69
2018 2,658,000 1,493,330 4,151,330 0.17% 87
2019 2,071,000 1,595,394 3,666,394 0.24% 128
2020 1,846,000 1,145,011 2,991,011 0.23% 105
2021 1,672,000 675,976 2,347,976 0.20% 92
2022 1,294,000 - 1,294,000 0.04% 25
2023 1,162,000 - 1,162,000 0.04% 23
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. a - Personal income, population and per capita information provided by California Department of Finance, and U.S Census Bureau and/or estimated by City Finance using 1% growth rate. b
- Special Assessment Government Activities includes Highlands Undergrounding AD No# 04-01, as of June 30, 2023 the balance was $1.032M. c
- Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million Energy Independence Loan Program. The actual Bond Issuance was for $2.015m. At June 30, 2023 the oustanding balance was $0.071M d - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection commenced during the fiscal year 2010-2011. At June 30, 2023 the outstanding balance was $0.059M. e
- In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable). On September 2, 2014 the bonds were called in full. As of June 30, 2017 there were no outstanding f
- Personal income and Per Capita statistic includes government and business type activities combined.

Governmental Activities Business Type Activities
192

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City of Palm Desert
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
Percentage of Actual
Special Assessment Taxable Value of Per
Bonds Property Capita
Note: There are no General Obligation Bonds from FY 2014 to FY 2023 193

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City of Palm Desert
Supplemental Special Assessment Information
June 30, 2023
District Name\Description
2003 01-01
Revenue Bonds
Silver Spur Ranch
Utility
Undergrounding 5
Community Facilities
District No. 2005-1
(University Park)
Special Tax Bonds
Series 2021A6
Community
Facilities District
No. 2021-1
(University Park)
Special Tax Bonds
Series 20217
2004-2 Section 29
Assessment District
Limited Obligation
Improvement Bonds
Series 2021
Bond Issue Date 6/25/2003 7/13/2021 7/13/2021 6/23/2021 Final Maturity Date 9/2/2028 9/1/2036 9/1/2051 9/2/2037 Highest Interest Rate 5.375% 4.000% 4.000% 5.100%
Bond Issue Amount $ 5, 2,340,000 165,000 15,200,000 16,400,000 Matured Principal $ 1,390,000 250,000 245,000 685,000
Called Principal $ 170,000 - - -
Outstanding Bonds (4) $ 780,000 $ 4,915,000 $ 14,955,000 $ 15,715,000 Redemption Premium 3.00% 3.00% 3.00% 3.00%
Original Parcels 201 66 243 859
Active Parcels 193 55 243 776
Reserve Requirement $ 153,947 $ 461,800 $ 868,775 $ 1,411,600 Reserve Balance 22/23 (1) $ 165,720 $ 468,408 $ 874,214 $ 1,416,863 Principal Due 23/24 (2) $ 115,000 270,000 305,000 785,000 Principal Levied 22/23 (3) $ 110,000 250,000 245,000 685,000 Interest Due 23/24 (2) $ 38,763 187,050 562,575 612,900 Interest Levied 22/23 (3) $ 44,669 194,850 570,825 635,450 22/23 Delinquency Rate 0.00% 1.64% 0.00% 0.13%
Arbitrage Installment Computation
Date: 90% Rebate Due 06/25/23 N/A N/A N/A
Arbitrage Yield Rate 4.9129% N/A N/A N/A
Arbitrage-Amount Owed -- - -
Continuing Disclosure Last Report
Issued: 1/4/2021 02/2023 02/2023 02/2023
(1) Reserve Balances are as of 6/30/23.
(2) Outstanding bond balance at June 30, 2023.
(3) Amount represents principal and interest collected during the FY 22/23 tax roll for Debt Service Payment due in FY 23/24 per debt service schedule.
(4) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments. (5) The schedule presents the information for each individual local obligation bonded district. Assessment Districts 94-3 Merano and 01-01 Silver Spur were refunded and obligated to pay Debt Service to Series 2003 Assessment Revenue Bonds see note 16 for additional information.
(6) Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021A were used to refund Community Faciliites District No. 2005-1 (University Park) Special Tax Bonds Series 2006A (6) Community Facilities District No. 2021-1 (University Park) Special Tax Bonds 2021A were used to pay and defease a pro rata portion of outstanding Community Faciliites District No. 2005-1 (University Park) Special Tax Bonds Series 2006A
Source: Willdan Financial Annual Report
194

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City of Palm Desert
Direct and Overlapping Government Activities Debt
June 30, 2023
2022/23 Assessed Valuation: $ 17,950,974,247
City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: Total Debt 6/30/23 % Applicable (1) Debt 6/30/23 Desert Community College District 486,615,000 $ 17.736% 86,306,036 $ Desert Sands Unified School District 365,405,000 33.619% 122,845,507 Palm Springs Unified School District 418,287,347 4.116% 17,216,707 City of Palm Desert Limited Obligation Improvement Bonds 100.000% 185,000 185,000 City of Palm Desert Community Facilities District No. 2005-1 4,915,000 100.000% 4,915,000 City of Palm Desert Community Facilities District No. 2021-1 14,955,000 100.000% 14,955,000 City of Palm Desert 1915 Act Bonds 17,537,000 100.000% 17,537,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 263,960,250 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Riverside County General Fund Obligations $ 686,776,829 4.957% $ 34,043,527 Riverside County Pensions Obligations 748,540,000 4.957% 37,105,128 Desert Sands Unified School District Certificates of Participation 13,785,000 33.619% 4,634,379 City of Palm Desert - 100.000% -
Desert Recreation District Certificates of Participation 1,389,522 25.849% 359,178 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 76,142,212 OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES) $ 0.210-100% 457,662,321 $ 161,126,242 TOTAL CITY DIRECT DEBT $ -
TOTAL OVERLAPPING DEBT $ 501,228,704
COMBINED TOTAL DEBT $ 501,228,704 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2022-2023 Adjusted Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.47%
Total Direct Debt ($0) 0.00%
Net Combined Total Debt 2.79%
Ratios to Redevelopment Successor Agencies Incremental Valuation $ (11,885,480,015) Total Overlapping Tax Increment Debt 1.36%
Source: California Municipal Statistics, Inc., City of Palm Desert Finance Department 195

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City of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed Value $ 17,950,974,247
Debt Limit (15% of Assessed Value) (1) 2,692,646,137
Debt Applicable to Limit:

General Obligation Bonds 1,032,000
Less: Amount set aside for
repayment of general obligation
debt -
Total Debt Applicable to Limit -
Legal debt margin $ 2,691,614,137
2014 2015 2016 2017 2018
Debt Limit 1,869,699,132 1,963,741,235 2,059,815,120 2,114,442,742 2,167,115,649 Total Net debt applicable to limit 1,526,000 1,489,000 1,451,000 1,410,000 1,368,000 Legal debt margin 1,868,173,132 1,962,252,235 2,058,364,120 2,113,032,742 2,165,747,649 Total net debt applicable to the limit
as a percentage of debt limit 0.08% 0.08% 0.07% 0.07% 0.06% 2019 2020 2021 2022 2023
Debt Limit 2,256,723,736 2,345,639,686 2,432,559,897 2,513,282,720 2,692,646,137 Total Net debt applicable to limit 1,310,000 1,178,000 1,130,000 1,082,000 1,032,000 Legal debt margin 2,255,413,736 2,344,461,686 2,431,429,897 2,512,200,720 2,691,614,137 Total net debt applicable to the limit
as a percentage of debt limit 0.06% 0.05% 0.05% 0.04% 0.04% (1) Section 43605 of the California Government Code.

Source: California Municipal Statistic, Inc. San Francisco Legal Debt Margin Calculation for Fiscal Year 2023

FISCAL YEAR

FISCAL YEAR
196

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City of Palm Desert
Pledged-Revenue Coverage
Last Ten Fiscal Years
Special Special
Fiscal Assessment Assessment
Year Collections a,c Principal Interest Coverage Collections Principal Interest Coverage 2012 8,822,163 3,332,000 4,897,651 1.0720 32,941,958 e 15,290,000 17,651,958 1.000 2013 9,524,786 3,786,896 5,255,558 1.0533 33,473,418 e 16,315,000 17,158,418 1.000 2014 d 12, 14,895,214 324,000 d 0. 4,954,432 38, 8621 444,447 e 23,650,000 14,794,447 1.000 2015 10,848,129 g 8,159,000 f 0. 4,543,692 32, 8540 294,255 e 18,295,000 13,999,255 1.000 2016 8,537,227 25,401,000 h 0. 4,463,786 34, 2859 810,024 e 18,055,000 16,755,024 1.000 2017 5,896,670 3,192,000 3,233,399 0.9177 37,535,680 e, i 16,255,000 e, i 1.000 21,280,680 2018 5,590,479 3,545,000 3,088,864 0.8427 23,428,001 e, i 14,235,000 e, i 1.000 9,193,001 2019 5,608,312 2, 427,000 2,942,348 1.0445 25,986,960 e, i 17,210,000 e, i 1.000 8,776,960 2020 5,280,905 2, 080,000 2,818,146 1.0781 27,833,500 e, i 19,475,000 e, i 1.000 8,358,500 2021 5,397,140 2, 119,000 2,698,952 1.1202 25,215,056 e, i 17,330,000 e, i 1.000 7,885,056 2022 j, k 3,342,319 488,000 1,072,389 2.1420 25,462,250 e, i 18,115,000 e, i 1.000 7,347,250 2023 3,253,687 1,439,235 1,577,199 1.0787 25,798,956 e, i 19,045,000 e, i 1.000 6,753,956 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Liberty-Mitch a The City issued $2.015 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection will commence during the fiscal year 2009-2010 with the first interest payment paid on March 2, 2010. b Tax increment bonds are backed by property tax increment based on calculation provided by the Riverside County tax assessor office.

Additional information on tax increment can be found in the notes to the financial statements. c The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection will commence during the fiscal year 2010-2011, in addition, the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2. The first princiapl payment was paid on September 2, 2010 d A portion of the $50.51 (2007) and $17.915 (2008) million CFD 2005-1 (University Park) was prepaid in the amount of $6.269 Million. The prepaid $6.269M and $2.280 (2004-1) were called during on September 2, 2014. e The total amount payable for the bonded obligations is disbursed by the State of California Department of Finance to the City of Palm Desert Successor Agency.

The annual collection equal the annual obligations.
f The City called the $5.225 Million Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable) in full on September 2, 2014 in the amount of $4.485 Million. The Energy Fund used the remaining $5.225 Bond Funds in the amount of $2.155 Million in addition to the $2.5 Million loan from the City General Fund as proceeds to call the bonds. g The City of Palm Desert loaned the Energy Fund $2.5 Million to call the $5.225 Million Energy Independence Program Lease Revenue Bonds, Series 2009 (Federally Taxable). The $2.5 Million is included as Special Assessment Collections. h During the Fiscal Year 2015-16 the Communities Facilities District 2005-1 (University Park Series, Special Tax Bonds Series 2006A and Series 2007 defeased $20.885M of the original issued $67.715M.
i
During the Fiscal Year 2016-17 the Successor Agency issued four series of bonds (1) the Tax Allocation Refunding Bonds, 2017 Series A ($52.39M), (ii) Taxable Tax Allocation Refunding Bonds, 2017 Series B ($140.130M), Tax allocation Refunding Bonds, 2017 Series H-A ($7.365M), and (iv) Taxable Tax Allocation Refunding Bonds, 2017 H-B ($45.815M). See Note 18 Tax Allocation Bonds. The 2017 Refunding Bonds refunded all of the tax allocation revenue bonds; with the exception of the Project Area No. 1 2007A Bonds, and the Project Area No. 2 2003 Bonds. j During the Fiscal Year 2021-22, the City of Palm Desert issued CFD 2021-1 Special Tax Bonds Series 2021 and CFD 2005-1 Special Tax Refunding Bonds Series 2021A. The purpose of these bonds is to refund the CFD 2005-1 Special Tax Bonds Series 2006A. k
During the Fiscal Year 2021-22, the City of Palm Desert issued Section 29 Assessment District 2004-02 Limited Obligation Refunding Improvement Bonds Series 2021. The purpose of this issuance is to refund the Section 29 AD 2004-02 Limited Obligation Improvement Bonds Series 2007.

Tax Increment b
Debt Service Debt Service
Special Assessment Bonds
197

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City of Palm Desert
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Percentage Per Capita City Riverside Percentage County Year City Increase Personal Personal Unemployment County Increase Unemployment End Population (Decrease) Income CY a Income CY Rate b Population (Decrease) Rate b 2023 50,615 -0.54% 3,049,841,493 $ $ 60,256 4.80% 2,439,234 0.15% 5.00% 2022 50,889 -5.57% 3,004,769,944 $ $ 59,046 4.10% 2,435,525 -0.77% 4.00% 2021 53,892 1.71% 2,960,364,477 $ $ 54,931 7.40% 2,454,453 0.50% 8.00% 2020 52,986 -1.19% 2,916,615,248 $ $ 55,045 17.20% 2,442,304 0.09% 14.70% 2019 53,625 1.62% 2,873,512,560 $ $ 53,585 4.90% 2,440,124 1.00% 4.40% 2018 52,769 4.00% 2,831,046,858 $ $ 53,650 5.00% 2,415,955 1.31% 4.80% 2017 50,740 2.85% 2,789,208,727 $ $ 54,971 4.00% 2,384,783 1.57% 5.70% 2016 49,335 -3.37% 2,747,988,894 $ $ 55,701 4.20% 2,347,828 1.71% 6.70% 2015 51,053 1.26% 2,707,378,221 $ $ 53,031 4.60% 2,308,441 1.25% 6.50% 2014 50,417 0.94% 2,667,367,705 $ $ 52,906 4.90% 2,279,967 1.10% 8.40% a - Personal Income estimated based on average growth rate of previous four years. The growth rate factor used was 1.5%. Income data will be updated once the actual data is available.
b - Unemployment rate for fiscal year 22/23 is based on annual information from State of California Employment Development Department Labor Market Information Division (not seasonally adjusted) Sources: State Department of Finance, State Employment Development Department 198

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City of Palm Desert
Principal Employers
Current and Nine Years Ago
Employer Employees Rank
Percentage of
Total City
Employment
Employer Employees Rank
Percentage of
Total City
Employment
JW Marriot-Desert Springs
Resort & DS Villas 2,304 1 10.02%
JW Marriot-Desert Springs
Resort & DS Villas 2,304 1 8.15%
Universal Protection Services
1,500 2 6.52%
Universal Protection Services
1,500 2 5.31%
Securitas-Security Service
USA 700 3 3.04% Securitas-Security Service USA 700 3 2.48% Avida Caregivers 550 4 2.39% Avida Caregivers-P.Desert 550 4 2.15% Organization of Legal Pro's 501 5 2.18% Sunshine Landscape 500 5 1.77% Sunshine Landscape 500 6 2.17% Bighorn Golf Club 250 6 0.88% Costco Wholesale
250 7 1.09%
Costco
250 7 0.88%
Bighorn Golf Club 250 8 1.09%Westin-Desert Willow
248 8 0.88%
Yellow Cab of Desert
160 9 0.70%
Time Warner Cable
236 9 0.83%
Whole Foods Market
150 10 0.65% Marriott Shadow Rige 208 10 0.74%
Sources: CA Employment Development Department - Federal and State Government not included * Data based on prior years numbers, at the time of preparation data was not available. 2023* 2014
199

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City of Palm Desert
Supplemental Miscellaneous Statistics
June 30, 2023
City/ Municipal Government
Form of Government: Council - City Manager/Charter City Date of Incorporation: November 26, 1973
Number of Employees: 123 Full-time Employees
Size of City: 26.96 Square Miles
Geographic Location: Located 117 miles east of Los Angeles and 515 miles south of San Francisco.

Streets: 170 paved street miles
Number of Business Licenses: 4,843 active business licenses Number of Hotels & Rooms: 19 hotels, 2,822 rooms
CONTRACT SERVICES:

Police Department Contract with Riverside County Sheriff - 61 sworn positions plus 19 support staff (rounded to nearest FTE)
Fire Department Contract with Riverside County/State Fire 49 positions plus 12 Fire Prevention staff Animal Control Riverside County Animal Services
Water & Sewer Coachella Valley Water District
Trash Collection Burrtec - Waste Management
Electric Southern California Edison
Gas Southern California Gas
Telephone Verizon
Airport Palm Springs International Airport
Public Education
Elementary School (grades K - 5) 4
Middle School (grades 6 - 8) 1
High School (grades 9 - 12) 1
Community College - College of the Desert 1
CSUSB - Palm Desert Campus 1
UCR - Palm Desert Graduate Center 1
Insurance Coverage
General Liability Coverage Calif. Joint Powers Insurance Authority $50 Million/Event (Excludes Earthquake & Flood) Excess Coverage: from $2 Million up to $50 Million limit Special Events Calif. Joint Powers Insurance Authority $1 Million Worker's Compensation Calif. Joint Powers Insurance $10 Million Property Insurance Calif. Joint Powers Insurance Based on Prop. Value Health Insurance
Medical California PERS; choice of PPO, HMO, Kaiser, Blue Shield Dental Delta Dental
Vision Vision Service Plan
Disability Insurance Disability - The Hartford Insurance Company Life The Hartford Insurance Company
Retirement California PERS - Public Employees' Retirement System Source: City of Palm Desert
200

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City of Palm Desert
Full-time Equivalent City Government Employees by Function / Program Last Ten Fiscal Years
Function / Program 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 General Government
City 38 35 33 33 31 31 32 32 34 34
Economic Dev & Housing b 17 12 11 11 11 10 11 13 13 13
Public Safety 29 28 30 30 28 29 29 28 26 25
Police & Fire (1) 141 141 140 174 172 179 170 163 169 173 Public Works 39 33 38 38 39 39 39 40 40 40

Totals 264 249 252 286 281 288 281 276 282 285
(1) The City operates as a "contract city" utilizing, primarily, agreements with other governmental entities, private firms and individuals to provide services.

Contracted services include: Police and Fire protection through the County of Riverside, Cal-Fire, animal control, health services, legal services and landscape maintenance.
a - As of June 2011 realignments were made due to budget cuts, retirements and layoffs, these continued to FY 2013. b - On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.

Source: City of Palm Desert Financial Plan, California Department of Forestry and Fire Protection, Riverside County Sheriff's Department 201

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City of Palm Desert
Operating Indicators by Function / Program
Last Ten Fiscal Years
Function / Program 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 General Government
Business License Inspections ******** 24 33
Contracted Services - Burrtec Waste (1)
Refuse Collected (tons) 60,753 61,932 60,226 58,096 59,154 56,346 54,301 52,772 54,865 57,935 Recyclables Collected 25,497 22,043 20,964 21,772 27,391 28,119 26,651 23,818 24,611 26,424 Public Safety
Physical Arrests 1,155 1,198 1,066 621 758 1,654 1,620 1,284 1,946 1,348 Parking Violations 1,128 769 780 899 375 575 587 712 794 386 Traffic Violations 1,497 1,398 2,070 1,392 3,525 7,012 6,939 6,223 5,525 5,284 Emergency Responses-Fire Department 11,136 10,557 9,701 15,088 10,009 9,984 9,617 9,285 8,628 8,235 Fires Extinguished 98 138 104 147 93 90 68 103 88 106
Fire Inspections ### 3,372 5,397 3,378 1,274 2,118 2,989 2,552 Building Permits Issued 4,795 5,211 3,651 3,118 3,912 3,644 4,734 4,704 4,909 5,552 Building Inspections Conducted 21,857 16,802 13,451 13,439 13,965 18,601 23,542 24,756 24,057 24,830 Public Works
Street Resurfacing (miles) (3) 37.6 2.25 1.83 16.9 31.6 7.3 25.8 2.9 8 34 Parks, recreation & culture
Athletic Field Permits Issued 2,766 2,255 2,262 643 2,990 2,934 3,197 2,997 4,430 6,548 Amphitheater / Pavilions Permits Issued 292 350 244 6 119 121 106 104 283 247 Community Center Admissions 37,048 32,326 15,577 9,746 52,203 60,769 51,694 64,493 53,426 50,204 Aquatic Center Admissions (2) 38,864 31,320 38,249 32,905 52,102 53,739 58,023 60,359 64,103 43,545 (1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals to provide services.

Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services, legal services and landscape maintenance.
(2) Aquatic Center operations began in June 2011, managed by the YMCA. (3) New methods of street resurfacing have improved efficiency, therefore equaling more miles resurfaced. (*) Per Building & Safety Department business license inspections are no longer done. (#) City discontinued the City Fire Marshal services and contracted with the County for State mandated inspections only.

Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste and The YMCA. 202

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City of Palm Desert
Capital Asset Statistics by Function / Program
Last Ten Fiscal Years
Function / Program 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 General Government
Contracted Services (1)
Collection trucks 39 35 29 25 25 24 24 35 30 30
Public Safety - Police & Fire
Police Stations 1 1 1 1 1 1 1 1 11
Police Sub Stations 1 1 1 1 1 1 1 1 11
Patrol Units-Cars 26 26 26 27 29 30 29 29 29 26
Patrol Units-Motorcycles 7 7 7 7 6 9 911 10 10
Fire Stations 3 3 3 3 3 3 3 3 33
Fire Trucks 1 plus 1 reserve 1 plus 1 reserve 5 plus 2 reserve 4 plus 1 reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Rsrvd 4 plus 1 Rsrvd Ambulance 4 plus 2 reserve 4 plus 2 reserve 4 plus 3 reserve 4 plus 3 reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Rsrvd 4 plus 3 Rsrvd Fire Prevention Pick-ups - - -2.5 4 3 3 3 33
Public Works
Streets (miles) 170 170 170 170 170 170 170 170 170 170 Traffic Signals 99 99 99 99 99 99 99 98 98 98
Parks, recreation & culture
Acreage 201 201 201 201 201 201 201 201 201 201
Total Parks 13 13 13 13 13 13 13 13 13 13
Playgrounds 16 16 16 16 16 16 16 16 16 16
Baseball/softball diamonds 8 8 8 8 8 8 8 8 88
Soccer/football fields 9 9 9 9 9 9 9 9 99
Basketball Courts 11 11 11 11 11 11 11 11 11 11
Tennis Courts 10 10 10 10 10 10 10 10 10 10
Volleyball Courts 8 8 8 8 8 8 8 8 88
Community Centers 2 2 2 2 2 2 2 2 22
Skateboard Parks 2 2 2 2 2 2 2 2 22
Aquatic Center 1 1 1 1 1 1 1 1 11
Commercial Office Space
(Parkview Office Complex)
Leasable Space (square feet) 47,909 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 Occupancy Rate 80% 84% 84% 91% 91% 82% 84% 90% 90% 86%
Number of Tenants by Type
Government (State, local regional) 5 7 7 7 7 7 7 9 89
Non-Profit 2 4 4 4 4 3 3 4 34
Private 3 3 3 3 3 2 3 1 14
Square Footage lease by tenant
Government (State, local regional) 23,374 31,607 31,607 31,607 31,607 30,907 32,287 33,127 30,907 31,921 Non-Profit 4,873 7,339 7,339 7,341 6,621 4,061 4,061 3,561 6,269 3,294 Private 3,083 3,083 3,083 6,693 7,468 6,218 6,938 8,688 8,025 8,025 Vacant 16,597 8,293 8,293 4,681 4,626 9,136 8,416 4,946 5,121 7,082 Municipal Golf Course
(Desert Willow Golf Resort)
Courses - Fire Cliff and Mountain View 2 2 2 2 2 2 2 2 22 Holes 36 36 36 36 36 36 36 36 36 36
Golf Carts 172 172 172 172 172 172 172 172 172 172
Clubhouse square footage 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 Rounds per Course
Fire Cliff 48,410 52,415 47,695 38,057 48,646 46,620 39,424 39,366 44,845 45,841 Mountain View 50,160 47,949 49,005 35,332 43,523 43,712 39,931 40,910 42,407 43,160 Total Annual Rounds 98,570 100,364 96,700 73,389 92,169 90,332 79,355 80,276 87,252 89,001

(1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals to provide services.

Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services, legal services and landscape maintenance.

Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste 203

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Note: This section is not required by GASB No. 44, however, City believes that statistical information is beneficial to the reader.

On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.

For more information on the dissolution of the RDA please see note 19 and note 20.

Supplemental Redevelopment Agency Statistical Section
City of Palm Desert, California
204

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Project Area No. 2
Project Area No. 3
Date:
1/2010
Redevelopment Agency
Project Areas
Area 1 - Original (1975)
Area 1 - Added Territory (1982)
I
Area 2
Area 3
Area 4
City Boundary
205

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City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2023

DESCRIPTION
$15,745,000
Tax Allocation
Revenue
Bond
Years 30
Bond Issue Date 03/26/03
Final Maturity Date 08/01/33
Highest Interest Rate 5.00%
Bond Issue Amount $ 15,745,000
Outstanding Bond Amount $ 15,745,000
Call Premium 1 - 2.00%
Bond Insurer MBIA
Reserve Requirement (1) 1,574,500
Reserve Balance (1) (1)
Called Bonds $ -
Principal Due 23/24 910,000
Interest Due 23/24 729,631
Arbritage Yield Rate 4.9502%
Arbritage-Amount Owed -
Arbritage Five Year Due Date: 03/26/28

DESCRIPTION
Non-Housing
Tax Allocation
Bond (Exempt)1
Non-Housing
Tax Allocation
Bond (Taxable)2
Years 13 24
Bond Issue Date 01/31/17 01/31/17
Final Maturity Date 10/01/30 10/01/41
Highest Interest Rate 5.000% 4.250%
Bond Issue Amount 52,390,000 $ $ 140,130,000
Outstanding Bond Amount $ 36,405,000 $ 96,345,000
Call Premium 0.00% 0.00%
Bond Insurer BAM BAM
Reserve Requirement (1) 5,840,397 9,027,545
Reserve Balance (1) (1) (1)
Called Bonds $ - $ -
Principal Due 23/24 715,000 11,675,000
Interest Due 23/24 1,802,375 3,422,400
Arbritage Yield Rate 3.659% 3.659%
Arbritage-Amount Owed - -
Arbritage Five Year Due Date: 01/31/27 01/31/27

DESCRIPTION
Housing
Tax Allocation
Bond (Exempt)3
Housing
Tax Allocation
Bond (Taxable)4
Years 14 6
Bond Issue Date 01/31/17 01/31/17
Final Maturity Date 10/01/31 10/01/23
Highest Interest Rate 5.000% 3.000%
Bond Issue Amount $ 7,365,000 $ 45,815,000
Outstanding Bond Amount $ 5,025,000 $ 6,195,000
Call Premium 0.00% 0.00%
Bond Insurer BAM BAM
Reserve Requirement (1) 687,519 4,581,500
Reserve Balance (1) (1) (1)
Called Bonds $ - $ -
Principal Due 23/24 455,000 6,195,000
Interest Due 23/24 216,144 92,925
Arbritage Yield Rate 2.907% 2.907%
Arbritage-Amount Owed - -
Arbritage Five Year Due Date: 01/31/27 01/31/27
(1) A surety bond was issued by MBIA Insurance, future reserve balance's will be zero. 1 Refunded PA 1-4 tax exempt portion of bonds ($22.07M, $19M, $24.945M, $62.3M, $17.31M, $67.6M, $4.745M, $15.05M, $11.02M, $15.695M, and $19.2M) 2 Refunded PA 1-4 taxable portion of bonds ($22.07M, $19M, $24.945M, $62.3M, $17.31M, $67.6M, $4.745M, $15.05M, $11.02M, $15.695M, and $19.2M) 3 Refunded Housing tax exempt portion of bonds (12.1M and $86.155M) 4 Refunded Housing taxable portion of bonds (12.1M and $86.155M) Source: City of Palm Desert and Successor Agency to the Palm Desert Redevelopment Agency 206

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City of Palm Desert
Historical Tax Increment/
Redevelopment Property Tax Trust Fund Summary
All Project Areas
Project Area No. 1 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Gross Tax Increment 51,298,203 53,437,088 56,610,029 58,222,677 59,842,517 62,844,689 64,495,840 68,597,410 70,656,513 77,499,942 Less:

Housing Set-Aside* 10,259,641 10,687,418 11,322,006 11,644,535 11,968,503 12,568,938 12,899,168 13,719,482 14,131,303 15,499,988 SB 2557 673,261 686,944 629,449 725,403 662,238 594,754 570,820 858,150 1,503,453 1,246,470 Gross Pass-Throughs 20,111,377 21,241,903 22,961,604 25,052,727 22,919,420 25,953,291 26,949,281 28,676,151 29,944,830 33,357,702 Net Tax Increment 20,253,925 20,820,823 21,696,970 20,800,012 24,292,356 23,727,706 24,076,571 25,343,627 25,076,927 27,395,781 RPTTF Amount Deposited 25,090,381 26,530,801 24,696,424 25,131,004 19,923,194 20,331,658 21,672,933 21,069,258 16,915,008 14,831,440 Project Area No. 2 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Gross Tax Increment 13,556,184 15,232,096 16,232,329 16,302,895 16,916,067 17,466,255 18,503,456 19,553,601 19,897,195 21,078,916 Less:

Housing Set-Aside* 2,711,237 3,046,419 3,246,466 3,260,579 3,383,213 3,493,251 3,700,691 3,910,720 3,979,439 4,215,783 SB 2557 179,214 192,900 180,457 202,348 187,481 165,500 172,557 243,191 188,413 339,023 Gross Pass-Throughs 4,967,602 5,665,961 6,078,194 6,103,481 6,372,798 6,609,645 7,125,321 7,569,060 7,672,621 8,741,803 Net Tax Increment 5,698,132 6,326,816 6,727,213 6,736,487 6,972,575 7,146,063 7,504,887 7,830,630 8,056,722 7,782,307 RPTTF Amount Deposited 7,017,531 5,441,721 5,547,427 5,887,814 5,516,674 5,629,776 6,106,095 6,005,764 4,763,343 4,033,947 Project Area No. 3 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Gross Tax Increment 3,760,421 3,754,999 4,039,902 4,360,574 4,364,606 4,487,719 4,653,982 4,947,578 5,015,404 5,230,337 Less:

Housing Set-Aside* 752,084 751,000 807,980 872,115 872,921 897,544 930,796 989,516 1,003,081 1,046,067 SB 2557 49,871 48,901 45,175 52,745 8,947 42,853 41,139 62,062 47,593 84,122 Gross Pass-Throughs 1,377,700 1,371,786 1,510,219 1,656,158 1,662,390 1,730,228 1,813,552 1,937,004 1,985,858 2,179,024 Net Tax Increment 1,580,766 1,583,312 1,676,528 1,779,556 1,820,347 1,817,094 1,868,494 1,958,996 1,978,872 1,921,124 RPTTF Amount Deposited 1,357,678 1,237,930 1,290,623 1,295,156 1,422,709 1,451,877 1,563,906 1,519,617 1,200,676 1,000,948 Project Area No. 4 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Gross Tax Increment 11,941,800 13,057,891 13,889,272 14,287,533 14,685,301 15,251,204 15,776,294 16,815,458 17,592,461 18,995,874 Less:

Housing Set-Aside* 2,388,360 2,611,578 2,777,854 2,857,507 2,937,060 3,050,241 3,155,259 3,363,092 3,518,492 3,799,175 SB 2557 156,818 166,634 154,976 178,812 162,715 145,017 139,433 210,710 166,282 305,520 Gross Pass-Throughs 7,901,830 8,381,422 8,866,804 9,433,947 9,943,062 10,454,725 8,434,713 11,405,344 12,185,263 13,800,057 Net Tax Increment 1,494,792 1,898,257 2,089,637 1,817,267 1,642,464 1,601,222 4,046,890 1,836,312 1,722,424 1,091,122 RPTTF Amount Deposited 3,675,440 3,071,966 2,443,507 2,610,660 4,834,978 4,934,105 5,301,405 5,164,761 4,211,595 3,635,308 *For calculation purposes only - No requirement to deposit Housing Set Aside post Redevelopment Dissolution. 207

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208

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City of Palm Desert
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
www.palmdesert.gov
209

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1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
January 30, 2024
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Palm Desert, California (the “City”) for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated January 30, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the City changed accounting policies related to conduit debt obligations, subscription-based information technology arrangements, and public-private and public-public partnerships and availability payment arrangements, and by adopting Statement of Governmental Accounting Standards (GASB Statement) Nos. 91, 94, and 96, in fiscal year 2022-2023. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Governmental and Enterprise statements. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management’s estimates of the net pension liability and net other postemployment benefits liability are based on actuarial valuation estimates. We evaluated the methods, assumptions, and data used to develop the actuarial valuation estimates in determining that they are reasonable in relation to the financial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated January 30, 2024.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison schedules for the General Fund and the major special revenue funds, and the required pension and other postemployment benefits schedules, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining and individual fund financial statements and schedules which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary

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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on other information included in the annual report which is comprised of the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Future GASB Pronouncements
The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management:

Fiscal Year 2023-2024
GASB Statement No. 99, Omnibus 2022.

Fiscal Year 2024-2025
GASB Statement No. 101, Compensated Absences.

Future Projects
Comprehensive Project, Financial Reporting Model.

Comprehensive Project, Revenue and Expense Recognition.

Major Project, Going Concern Uncertainties and Severe Financial Stress.

Major Project, Infrastructure Assets.

Practice Issue, Classification of Nonfinancial Assets.

Practice Issue, Risks and Uncertainties Disclosures.

Pre-Agenda Research Activities, Subsequent Events .

Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Brea, California

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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California

ATTACHMENT
Summary of Unadjusted Audit Differences
Name of Governmental Unit: City of Palm Desert
Date of Combined Balance Sheet: June 30, 2023
Opinion Unit, Fund Type or Fund: General Fund
Unadjusted Audit Differences Cause
Fiscal year 2022 reimbursements from SARDA recognized in fiscal year 2023 Improper cutoff $ 364,000
Understated beginning fund balance Improper cutoff (364,000) Cumulative effect (before effect of prior year differences) - Effect of unadjusted audit difference - prior year -
Cumulative effect (after effect of prior year differences) $ - Current Year Over
(Under) Revenues and
Expenditures/Expenses
and Changes in Fund
Balance/Equity

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COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of The City of Palm Desert, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 30, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Brea, California
January 30, 2024

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CITY OF PALM DESERT
FISCAL YEAR 2022- 2023

APPROPRIATIONS LIMIT CALCULATION
Article XIII B of the California Constitution requires adoption of an annual appropriation limit. The original base year limit was adopted in FY 1978-79 and has been adjusted annually for increase by a factor comprised of the percentage change in population combined with either the percentage change in California per capita personal income or the percentage change in local assessment roll due to the addition of local nonresidential new construction. The changes in the local assessment roll due to additional local nonresidential new construction for current and prior periods have not been available from the County Assessor's office.

On November 1988, voters approved Proposition R which increased the limit to $25,000,000. It expired in November 1992. The FY 1993-94 limit was calculated with prior years re-calculated to reflect the expiration of the 25,000,000 limit.

AMOUNT SOURCE
A. 2021-22 APPROPRIATION LIMIT 154,083,536 PRIOR YEAR'S CALCULATION B. ADJUSTMENT FACTORS

1. POPULATION %
POPULATION % CHANGE 0.42 STATE DEPT OF FINANCE
POPULATION CONVERTED TO RATIO ( 0.42+100)/100 1.0042 CALCULATED

2. INFLATION %
USING % CHANGES IN CALIF PER CAPITA PERSONAL INCOME
PER CAPITA % CHANGE 7.55 STATE DEPT OF FINANCE
PER CAPITA CONVERTED TO RATIO ( 7.55+100)/100 1.0755 CALCULATED

3. CALCULATION OF FACTOR FOR FY 22-23 1.0800 B1*B2
C. 2022-23 APPROPRIATIONS LIMIT BEFORE ADJUSTMENTS 166,412,854 B3*A D. OTHER ADJUSTMENTS 0 CALCULATED
E. 2022-2023 APPROPRIATIONS LIMIT 166,412,854 C+D
F. APPROPRIATIONS SUBJECT TO LIMIT 58,056,645 CALCULATED G. OVER/(UNDER) LIMIT ( 108,356,209) F-E

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 15, 2024
PREPARED BY: Liberty Urban, Deputy Director of Finance
REQUEST: RECEIVE AND FILE THE INDEPENDENT ACCOUNTANTS’ REPORT ON

AGREED-UPON PROCEDURES PERFORMED ON THE MEASURE A
TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2023 RECOMMENDATION:

Receive and file the Independent Accountants’ Report on Agreed-Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2023.

BACKGROUND/ANALYSIS:

The Measure A fund is a special revenue fund that was created to keep track of funds received by the Riverside County Transportation Commission. In 1988, Riverside County voters approved a half cent sales tax, known as Measure A, to fund a variety of highway improvements, local streets and roads maintenance, commuter assistance and specialized transit projects.

Conrad LLP performed the procedures that were agreed to by the Riverside County Transportation Commission, Riverside, California (RCTC) solely to assist RCTC with respect to an evaluation of the City of Palm Desert’s Measure A Transportation Fund and degree of the City’s compliance with RCTC requirements for the year ended June 30, 2023.

The agreed-upon procedures report issued by Conrad LLP found the City in compliance with its Maintenance of Effort (MOE) requirements but noted an accumulated excess fund balance of $6.9 million from prior year revenues. The City has budgeted $19.1 million in Measure A expenditures in Fiscal Year 2023-24, which are anticipated to draw down the $6.9 million excess along with $12.2 million in additional accumulated fund balance.

Staff requests that the City Council receive and file the Independent Accountants’ Report on Agreed-Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2023.

Legal Review:

This report has been reviewed by the City Attorney’s office.

Appointed Body Recommendation:

The Finance Committee received the Independent Accountants’ Report at their meeting on January 22, 2024, and made a recommendation to receive and file the report as presented.

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City of Palm Desert
FY22/23 Measure A Agreed-Upon Procedures Report

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FINANCIAL IMPACT:

There is no fiscal impact associated with this action.

ATTACHMENT:

Independent Accountants’ Report on Agreed-Upon Procedures

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Attachment 1

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 15, 2024
PREPARED BY: Ryan Gayler, Capital Projects Manager
REQUEST: ACCEPT CONTRACT NO. C45240 AS COMPLETE FOR THE FRED WARING DRIVE STREET IMPROVEMENT PROJECT (PROJECT NO.

CST00022)
RECOMMENDATION:

1. Accept Contract No. C45240 with Matich Corporation of San Bernadino, California, for the Fred Waring Drive Street Rehabilitation Project as complete and authorize the City Clerk to file the Notice of Completion (Project No. CST00022)

2. Authorize the Mayor to execute and the City Clerk to file the Notice of Completion.

BACKGROUND/ANALYSIS:

On July 13, 2023, the City Council awarded the subject contract in the amount of $3,057,420 to Matich Construction for the Fred Waring Drive Street Rehabilitation Project. The project paved a six-inch section of new asphalt from Highway 111 to Monterey Avenue, as well as repaving a damaged lane on Monterey Avenue south of Fred Waring Drive. The rehabilitation enabled the ride quality to be improved by removing several dips and bumps in the street. In addition, the project improved pedestrian facilities, bringing them up to ADA standards, and repaired the existing storm drain line in the street. The total cost of construction was $3,004,473.79.

The contract for the project included an early completion incentive. The contractor completed the project thirteen days prior to the contract completion date entitling them to an additional $260,000. Staff has inspected the work performed by the contractor and has found the work to be complete and in accordance with the contract requirements. With the early completion incentive, the total project cost was $3,264,473.79.

Legal Review:

This report has been reviewed by the City Attorney’s office.

FINANCIAL IMPACT:

There is no direct financial impact associated with this action.

ATTACHMENTS:

1. Notice of Completion

2. Vicinity Map

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To be recorded with the Riverside County Recorder
on or within 15 days after completion and acceptance by the City Council. NO RECORDING FEE PER
SECTION 6103 OF THE GOVERNMENT CODE.

APN 000-000-000 R/W NOTICE OF COMPLETION
(Cal. Civ. Code § 9200 et seq. – Public Works)
NOTICE IS HEREBY GIVEN:

1. That the interest or estate stated in paragraph 3 herein in the real property herein described is SOLELY OWNED by the CITY OF PALM DESERT, A MUNICIPAL CORPORATION, a political subdivision of the State of California, and whose address is 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA, 92260.

2. That the full name and address of the owner of said interest or estate is set forth in the preceding paragraph.

3. That the nature of the title of the stated owner, as set forth in paragraph 1, is FEE.

4. That on the 15th day of February, 2024 work of improvement described as the Fred Waring Drive Street Improvement Project, Project No. CST00022 Contract No. C45240, on the real property herein described was completed.

5. That the name of the original contractor, if any, for said work of improvement was: Matich Corporation.

6. That the real property herein referred to is situated in the City of Palm Desert, County of Riverside, State of California, and is described as (Citywide) 73-510 Fred Waring Drive, Palm Desert, CA 92260.

CITY OF PALM DESERT

A MUNICIPAL CORPORATION
Date: By:

Karina Quintanilla, Mayor

When recorded, return to:

Office of the City Clerk
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260

VERIFICATION
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, am authorized to execute and file this Notice of Completion with the County Recorder of the County of Riverside on behalf of the City of Palm Desert. I have read the Notice of Completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on , ,20 , at, California.
(Date of signature) (City where signed)
__________________________________________________
(Personal signature of the individual who is swearing that the contents of the notice of completion are true)
Rev. November 2023

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 15, 2024
PREPARED BY: Shelby Goodwin, Special Events Coordinator REQUEST: APPROVE SPECIAL EVENT PREPAID EXPENDITURES FOR FISCAL YEAR 2024/25
RECOMMENDATION:

1. Approve prepaid expenditures in an amount not to exceed $130,000 from the Fiscal Year 2024/25 Budget for production of the 2024 Independence Day Celebration and October Concerts in the Park Series.

2. Authorize the City Manager to execute vendor contracts associated with production of the events.

BACKGROUND/ANALYSIS:

For over three (3) decades the City of Palm Desert has produced a large-scale Independence Day Celebration, which attracts over 10,000 spectators to Palm Desert Civic Center Park each year. For most of this time, the annual fireworks display has been provided without incident by Pyro Spectaculars, one of the most reputable pyrotechnics companies in the United States and which has received high praise every year from the Riverside County Fire Marshal’s office. In accordance with the City’s purchasing policy, staff plans to enter a three (3)-year contract with Pyro Spectaculars, contingent on annual budget approval, with a one (1)-year option to extend for a total amount of $155,500 ($150,500 for three displays plus ancillary costs not to exceed $5,000 for permits required to be paid by vendor to the Riverside County Fire Marshal’s Office).

The total cost quoted for the 2024 fireworks display is $48,920 which requires a $24,920.00 deposit paid by the City by March 4, 2024.

Additional festivities for this event include food trucks, a variety of vendors, children’s activities, a color guard presentation, and live music followed by the 20-minute fireworks display synchronized to patriotic music simulcast on local radio stations. Anticipated expenditures for the celebration, some of which require contracting and payment prior to July 1, 2024, include:
 Professional sound and lighting services in conjunction with the concert  Two (2) live onsite radio remotes
 Radio promotion
 Shuttle services to transport attendees between The Gardens on El Paseo and the Civic Center Park
 Event insurance
 Health Department and Fire Marshal permit fees
 Golf cart rentals
 Two-way radios for staff and agencies involved to communicate during the event

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City of Palm Desert
APPROVE SPECIAL EVENT PREPAID EXPENDITURES FOR FISCAL YEAR 2024/25

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 Police Services
 Other related expenditures
Concert in the Parks
The City produces a Concert in the Park Series every Thursday evening in May and October.

The October 2024 Concerts in the Park Series includes a fifth Thursday, which happens to fall on Halloween. To ensure booking of top-notch entertainment for the evening, staff would like to contract with a band prior to July 1, 2024.

Legal Review:

This report has been reviewed by the City Attorney’s office.

Strategic Plan:

Preapproval of FY 2024/2025 event expenditures would help address the following priorities as specified in the 2013-2033 Strategic Plan, Envision Palm Desert – Forward Together:
 Economic Development Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle.  Tourism and Marketing Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year-round destination.

FINANCIAL IMPACT:

Funding for the 2024 Independence Day Celebration has increased from $80,000 to $120,000 from 2023 due to inclusion of both public safety services and Fire Marshal permit fees (separate from those paid by the vendor), both of which were paid for from the City’s Public Safety Budget in previous years, as well as general inflation. Following is an estimated breakdown for the event moving forward:
2024 Independence Day Celebration Additional $40,000
Police Services $20,000
Fire Marshal Permits $10,000
General Inflation $10,000
The advance requested to contract with a band for the October 31, 2024, concert is $10,000.

Additional funds for the 2024 October Concerts in the Park Series will be requested as part of the FY 2024/2025 Budget.

Funding for these two (2) items in the amount of $130,000 will be included as part of the anticipated FY 2024/2025 Budget City Produced Events Account No. 1104416-4306101.

ATTACHMENT:

Pyro Spectaculars Proposal

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 15, 2024
PREPARED BY: Chris Escobedo, Assistant City Manager
REQUEST: RECEIVE AND FILE THE 2024 WORK PLAN FOR THE PUBLIC SAFETY

COMMITTEE
RECOMMENDATION:

Receive and file the 2024 Annual Work Plan for the Public Safety Committee.

BACKGROUND/ANALYSIS:

At its December 12, 2023, meeting, the Public Safety Committee (PSC) discussed priorities and came to consensus on its 2024 workplan. On January 9, 2024, the PSC voted unanimously to approve the workplan and created sub-committees to assist staff and public safety partners on reviewing and working on the three priority areas.

Work Plan
• Traffic Safety – Review traffic enforcement programs, receiving updates, and providing input on traffic calming for related traffic Capital Improvement Projects.

PSC Sub-committee members: Stephen Nelson, Frank Taylor and Kevin Wahlstrom. • Public Safety Budget – Review the police and fire budget, including a review of fire and police calls for service, staffing levels, and response times. Provide recommendations for the PSC and Council’s consideration. Also, to include monthly updates on the City’s Automated License Plate Recognition Program.

PSC Sub-committee members: Terry Kramer, Douglas Luhring and Frank Taylor • Community-Oriented Policing – Receive updates on crime prevention programs, understand the current programs in place, and discuss the need for public service announcements.

PSC Sub-committee members: Jeff Alley, Joseph Butts, and Kevin Wahlstrom Legal Review:

This report has been reviewed by the City Attorney’s office.

FINANCIAL IMPACT:

While none of these have a direct cost outside of staff time, should recommendations from the PSC advance to City Council, staff will provide a financial impact analysis.

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 15, 2024
PREPARED BY: Randy Chavez, Deputy Director of Public Works REQUEST: PURCHASE OF A STREET SWEEPER TO IMPROVE CITYWIDE

ROADWAY AND PARKING LOT MAINTENANCE
RECOMMENDATION:

1. Authorize the purchase of an Elgin Broom Bear Street Sweeper from Haaker Equipment Company from La Verne, California, in the amount of $454,194.27.

2. Authorize the Director of Finance to set aside a contingency of $25,000 for any unforeseen fees and ancillary equipment.

3. Authorize the Finance Director to appropriate funds in the amount $479,194.27 from unobligated Equipment Replacement Fund to Account No. 5304310-4403000.

4. Authorize City Manager or designee to approve the use of the contingency and any documents necessary to effectuate actions taken herewith.

BACKGROUND/ANALYSIS:

Summary:

Over recent years, Palm Desert has received numerous occurrences of windborne sand events and a corresponding rise in demands for improved roadway and parking lot sweeping maintenance. As a result, staff reviewed its street sweeping operations, including the current outsourced level of service, and best practices. After review, staff recommends purchasing a diesel street sweeper, which is readily available today (no lead time) with approval of this item.

Issue:

Windborne sand events have been increasing over the years, leading to an increase in requests for street sweeping services. Consequently, the City's street sweeping operations have been unable to keep up with desired service levels. The necessity for maintaining clean and debrisfree streets has emerged as a priority for the City’s ongoing development and maintenance efforts, as well as the need for continual emergency preparation.

Existing Operations:

To effectively remove windborne sand from roadways, a combination of proactive measures and responsive cleaning techniques are employed. The City implements regular street sweeping, dust control measures, vegetation plantation, and barrier installation. Contracted sweeping services include:

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City of Palm Desert
Authorize Purchase of Street Sweeper

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 Regular Street Sweeping Services (Bi-weekly): The City contracts with a vendor for arterial and parking lot sweeping for $230,000 annually until June 30, 2028. This covers all costs for bi-weekly sweeping, and the vendor's performance has been satisfactory.  CVAG Sweeping Services (Bi-weekly): CVAG's sweeping vendor, funded through AB2766, sweeps major arterials in Palm Desert (Attachment A). However, they fall short of the City's standards due to traffic volume, sand accumulation, and other reasons.

Despite outreach, issues persist. The City allocates $60,000 annually for this service.

Staff have reached out for quotes for additional sweeping and are awaiting a response.  Additional Sweeping Services (As-needed): The City contracts with its vendor for extra services during severe weather. The City recently spent $22,000 on rental equipment in June and July 2023 and invested $100,000 post-Hilary Storm. Securing a street sweeper during emergencies took around 30 days in the latest event, impacting prompt response.

Street Sweeper Cost Analysis
Description Annual Cost
Rented Street Sweeper ($14,000 / month): $168,000
Major One-time Event (per year): $50,000
Annual Rental Total: $218,000
Average Lifespan (4 to 8 years): 5
Rental Cost / Additional Emergency Sweeping (5 years): $1,090,000 Purchase New Street Sweeper: $480,000
Equipment Comparison:

Staff contacted Haaker Equipment Company to request quotes for different equipment types.

This company provides pricing pursuant to a cooperative purchasing agreement through Sourcewell. By utilizing this cooperative pricing schedule, the City is assured of the best pricing on quality products. Accordingly, staff dispensed further bidding pursuant to Palm Desert Municipal Code Section 3.30.160(E).

The table below assumes purchasing a mechanical broom street sweeper with the capacity of over four-cubic yards, which aligns with best practices. The table is also categorized by power source, delivery time and contract price. Please note that the contract prices cover direct costs (e.g., equipment and initial training) but not indirect costs (e.g., maintenance and spare parts).

Equipment Comparison
Power Source Delivery Time Contract Price
Electric 12 Months $ 974,850.89
CNG 12-18 Months $ 573,395.94
Diesel Immediately $ 454,194.27

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City of Palm Desert
Authorize Purchase of Street Sweeper

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Equipment Comparison:

Staff recommends the purchase of an Elgin Broom Bear Street Sweeper (diesel) from Haaker Equipment Company in an amount totaling $454,194.27. The recommendation also incorporates a contingency of $25,000 for additional brooms and unforeseen fees. The recommendation of this model is based upon several factors including:
 Immediate Availability: The street sweeper is readily available for purchase with no lead time, ensuring swift deployment to address occurrences of windborne sand events. In fact, this is the last remaining diesel street sweeper inventory, and newer model diesel street sweepers are prohibited for municipal fleet sale in California beginning 2024.  Reduced Upfront Expenses: As displayed, the diesel street sweeper has significantly lower upfront expenses compared to electric and CNG alternatives.  Reliability in Emergency Situations: In emergency situations, a diesel-powered sweeper is more reliable than electric and CNG alternatives. It can operate independently during grid failures or prolonged operations, ensuring continued functionality.  Proven Suitability for Desert Communities: Mechanical broom sweepers are suited for desert communities like Palm Desert. They are designed to effectively clean and remove sand and debris, addressing the unique challenges posed by windborne sand events.

Legal Review:

This report has been reviewed by the City Attorney’s office.

FINANCIAL IMPACT:

The approved Capital Improvement Project (CIP) List for Fiscal Year 2023/24 includes a total of $480,000 for the purchase of various equipment as follows:

Account / Equipment Budget Actual Cost Estimated Cost Balance EV Carpools $150,000 Pending $100,000
Graffiti Truck $110,000 Pending $150,000
Concrete Truck $100,000 $124,138.36
Dump Trailer $20,000 $15,201.65
Mini Excavator $60,000 $54,537.01
Utility Golf Cart $40,000 $33,560.82
Cost Total $227,437.84 $250,000
FY 23/24 Total $480,000 $477,437.84 $2,562.16
Street Sweeper Appropriation $479,194.27
Account Total $481,756.43
Staff requests an appropriation to Account No. 5304310-4403000 to cover the cost of the sweeper.

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City of Palm Desert
Authorize Purchase of Street Sweeper

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Appropriation Necessary
Unit Price $428,712.00
Government Discount (Sourcewell) ($ 7,186.00)
Sales Tax (7.75%) $ 32,668.27
Total Purchase Price: $454,194.27
Contingency $ 25,000.00
Total Appropriation Request: $479,194.27
ATTACHMENTS:

1. CVAG Vendor Routes (Bi-weekly)

2. Product Information

3. Vendor Quote

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AMON
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ONTEREY

PORTOLA

FRED WARING

JEFFERSON

COUNTRY CLUB
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DINAH SHORE
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FRANK SINATRA
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INDIAN WELLS

RANCHO MIRAGE

LA QUINTA
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Indian Wells
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}74
Monday Week 1
Tuesday Week 1
Wednesday Week 1
Friday Week 2
Map 2
Road Network
City Boundaries

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AMON
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ONTEREY

PORTOLA

FRED WARING

COUNTRY CLUB
DA
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DINAH SHORE
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TOWN CENTER

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INDIAN WELLS

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Indian Wells
Ü 0 0.5 1 2
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Map 2 Special Impact
Road Network
City Boundaries
Friday Week 2 Impact
NOTE: NO SPECIAL IMPACT
STREETS IN MAP 1 AREA

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 15, 2024
PREPARED BY: Shawn Muir, Community Services Manager
REQUEST: REAFFIRM APPROVAL OF A CONSERVATION EASEMENT WITH THE

COACHELLA VALLEY CONSERVATION COMMISSION FOR LANDS

WITHIN THE COACHELLA VALLEY MULTIPLE SPECIES HABITAT

CONSERVATION PROGRAM
RECOMMENDATION:

1. Reaffirm approval of the Conservation Easement with the Coachella Valley Conservation Commission (CVCC) for lands within the Coachella Valley Multiple Species Habitat Conservation Program (CVMSHCP).

2. Authorize the City Manager to execute the Conservation Easement document.

BACKGROUND/ANALYSIS:

On August 23, 2012, staff presented a request for approval of a Conservation Easement for approximately 116-acres in south Palm Desert. The recommendation was to direct staff to prepare and execute the Conservation Easement due to the loss of the Redevelopment Agency and the desire to protect properties in the hillsides that were acquired for preservation/open space. The City Council voted 3-2 to approve the Conservation Easement; however, the document was not finalized and signed.

Staff was made aware of the need to coordinate with the CVCC and other organizations to finalize and execute the Conservation Easement in August 2022, as no documentation of the recorded easement could be located. Staff worked with CVCC who also coordinated with the various wildlife organizations involved to prepare the Conservation Easement. This easement document has been approved by the Wildlife Agencies as the template for future conservation easements developed under the CVMSHCP.

Legal Review:

Both the City Attorney and CVCC Legal Counsel have been involved in the development of the Conservation Easement. They have each reviewed and approved the final Conservation Easement document for final execution.

FINANCIAL IMPACT:

There is no financial impact associated with this action; however, the City will accurately have the approximately 116-acres covered by the Conservation Easement counted toward the required CVMSHCP contribution.

ATTACHMENTS:

1. 2012 Approved Staff Report

2. Conservation Easement

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72500.00001\7726262.5
1 CONSERVATION EASEMENT

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

Coachella Valley Conservation Commission
74-199 El Paseo, Suite 100
Palm Desert, CA 92260
)
)
)
)
)
)
)
Space Above Line for Recorder’s Use Only

CONSERVATION EASEMENT DEED
THIS CONSERVATION EASEMENT DEED is made this ___ day of ________, 2024, by the CITY OF PALM DESERT, a California municipal corporation (“Grantor”), in favor of the COACHELLA VALLEY CONSERVATION COMMISSION, a California Joint Powers Authority, (“Grantee,”) with reference to the following facts:

RECITALS
A. Grantor is the sole owner in fee simple of certain real property consisting of approximately 116.12 acres in the City of Palm Desert, County of Riverside, State of California, and more particularly described in Exhibit “A” attached hereto and incorporated herein by this reference (the “Property”).

B. The Property possesses wildlife and habitat values (collectively, “conservation values”) of great importance to Grantee, the people of the State of California, and the people of the United States;
C. The Property provides potential habitat for the Coachella Valley Jerusalem Cricket (Stenopelmatus cahuilaensis) , Desert Tortoise (Gopherus agassizii), Le Conte’s Thrasher (Toxostoma lecontei), Coachella Valley round-tailed ground squirrel, (Spermophilus tereticaudus chlorus), Palm Springs Pocket Mouse (Perognathus longimembris bangsi), Peninsular Bighorn Sheep (Ovis canaciensis nelson) and contains natural communities including sonorant creosote bush scrub;
D. The California Department of Fish and Wildlife (“CDFW”) has jurisdiction, pursuant to California Fish and Game Code section 1802 and other laws, over the conservation, protection, and management of fish, wildlife, native plants, and the habitat necessary for biologically sustainable populations of those species;
E. The United States Fish & Wildlife Service (“USFWS”) has jurisdiction over the conservation, protection, restoration, enhancement, and management of fish, wildlife, native plants, and habitat necessary for biologically sustainable populations of those species to the extent set forth in the Federal Endangered Species Act, 16 U.S.C. sections 1531, et seq., and other federal laws;

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2 F. The Coachella Valley Conservation Commission (“CVCC”) is a California joint powers authority pursuant to Government Code sections 6500-6511 created to implement the Coachella Valley Multiple Species Habitat Conservation Plan/Natural Community Conservation Plan (“MSHCP”) and is a governmental agency qualified to hold conservation easements pursuant to Civil Code section 815.3;
G. This Conservation Easement provides mitigation for certain project impacts pursuant to the California Natural Community Conservation Planning Act Permit 2035-2008- 001-06 dated September 9, 2008, issued by CDFW under the authority of California Fish and Game Code sections 2800 et seq. (“NCCP Permit”), and Permit No TE104604-0 dated October 1, 2008, issued by USFWS under the authority of section 10(a)(l)(B) and section 10(a)(2) of the Endangered Species Act of 1973 as amended (FESA) (“Section 10(a) Permit”), and the corresponding MSHCP dated September 2007 and Implementing Agreement, as same may be amended from time to time. The Section l0(a) Permit, the NCCP Permit, the Implementing Agreement, and the MSHCP, and any amendments thereto, are all incorporated herein by this reference. Information regarding these documents may be obtained from USFWS and CDFW, for each respective permit, and from CVCC regarding the Implementing Agreement and the MSHCP. Contact information for USFWS, CDFW, and CVCC is provided in the Notices section of this Conservation Easement Deed.

COVENANTS, TERMS, CONDITIONS AND RESTRICTIONS
In consideration of the above recitals and mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to United States and California law, including Civil Code sections 815, et seq., Grantor hereby voluntarily grants and conveys to Grantee a Conservation Easement in perpetuity over the Property.

1. Purpose. The purpose of this Conservation Easement is to ensure the Property will be retained forever in a natural condition and to prevent any use of the Property that will impair or interfere with the conservation values of the Property. Grantor intends that this Conservation Easement will confine the use of the Property to such activities, including, without limitation, those involving the preservation and enhancement of native species, their habitat, and natural communities, in a manner consistent with the habitat conservation purposes of this Conservation Easement.

1.1 The term “natural condition,” as referenced in the preceding paragraph and other portions of this Conservation Easement Deed, shall mean the condition of the Property, as it exists at the time this Conservation Easement Deed is executed, as well as future enhancements or changes to the Property that occur directly as a result of in-perpetuity maintenance and management obligations that occur on the Property as described herein.

1.2 Grantor certifies to Grantee that to Grantor’s actual knowledge the only existing improvements on the Property at the time this Deed is executed are the recreational trails and associated trailheads depicted in Exhibit “B” attached hereto and incorporated herein by this reference. Grantor further certifies to Grantee that to Grantor’s actual knowledge there are no previously granted easements existing on the Property that interfere or conflict with the purpose of this Conservation. Easement.

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3 1.3 Grantee’s acceptance of this Conservation Easement is expressly conditioned on the receipt from Grantor, prior to recordation, of either (a) a baseline report on the condition of the Property in a form acceptable to Grantee, who will provide 15 business days to CDFW and USFWS for review and comment ahead of Grantee approval, at their sole discretion, or (b) payment of the sum necessary to reimburse Grantee for the cost of obtaining a baseline report as quoted by a contractor approved by Grantee. The baseline report shall be deemed evidence of the natural condition of the Property at the time of the grant of the Conservation Easement. Exhibits to the baseline report shall include (a) an aerial photograph(s) of the Property at an appropriate scale taken as close in time as possible to the date this Conservation Easement is executed; (b) an overlay of the boundaries of the Property on such aerial photograph(s); and (c) on-site color photographs showing the major, distinct natural features of the Property.

2. Grantee’s Rights. To accomplish the purposes of this Conservation Easement, Grantor hereby grants and conveys to Grantee, and to USFWS and CDFW as third-party beneficiaries hereof, or their respective designee(s), all mineral, air, and water rights necessary to protect and to sustain the biological resources of the Property, and all present and future development rights, as well as all of the following rights:
(a) To preserve and protect the conservation values of the Property; (b) To enter upon the Property at reasonable times in order to monitor compliance with and to otherwise enforce the terms of this Conservation Easement, and for scientific research and interpretive purposes by Grantee or its designees, provided that Grantee shall not unreasonably interfere with Grantor’s authorized use and quiet enjoyment of the Property;
(c) To enter upon the Property at reasonable times to carry out management and monitoring consistent with the conservation goals, monitoring program, and management plans for the MSHCP;
(d) To prevent any activity on or use of the Property that is inconsistent with the purposes of this Conservation Easement and the MSHCP and to require the restoration of such areas or features of the Property that may be damaged by any act, failure to act, or any use that is inconsistent with the purposes of this Conservation Easement; and (e) To enforce, by any means, including without limitation injunctive relief, the terms and conditions of this Conservation Easement.

3. Prohibited Uses. Any activity on or use of the Property inconsistent with the purposes of this Conservation Easement is prohibited except as allowed by Grantor and Grantee pursuant to an express written approval. Without limiting the generality of the foregoing, the following uses by Grantor, Grantor’s agents, and third parties, are expressly prohibited:
(a) The application of water; the use of fertilizers, pesticides, biocides, herbicides or any agricultural chemical; incompatible fire protection activities; and any and all other activities and uses which may adversely affect the purposes of this Conservation Easement;

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4 (b) Use of off-road vehicles and use of any other motorized vehicles except on existing roadways;
(c) Grazing or other agricultural activity of any kind; (d) Recreational activities except those specifically authorized on the Property under the MSHCP;
(e) Residential, commercial or industrial uses:
(f) Any legal or de facto division, subdivision or partitioning of the Property; (g) Construction, reconstruction or placement of any building, billboard or sign, or any other structure or improvement of any kind; (h) Dumping, depositing or accumulation of soil, trash, ashes, refuse, waste, biosolids or any other materials;
(i) Planting, introduction or dispersal of non-native or invasive plant or animal species, except as otherwise approved by Grantee; (j) Filling, dumping, excavating, draining, dredging, mining, drilling, removing or exploring for or extraction of minerals, loam, soil, sands, gravel, rocks or other material on or below the surface of the Property, except as necessary to conduct authorized natural or cultural resources research or preservation in consultation with Native American Tribes, State Historic Preservation Office, and other entities/agencies as required by state or federal law;
(k) Altering the surface or general topography of the Property, including building of roads except as necessary to conduct authorized natural or cultural resources research or preservation in consultation with Native American Tribes, State Historic Preservation Office, and other entities/agencies as required by state or federal law, or to modify and maintain the recreational trails depicted in Exhibit B as provided for in the MSHCP; (l) Removing, destroying, or cutting of trees, shrubs or other vegetation, except as required by law for fire breaks, maintenance of the existing foot trails depicted in Exhibit B, or prevention or treatment of disease;
(m) Manipulating, impounding or altering any natural water course, body of water or water circulation or underground water table on the Property, and activities or uses detrimental to water quality, including but not limited to, degradation or pollution of any surface or subsurface waters;
(n) Shining artificial light into the Property;
(o) Any activities prohibited under the MSHCP; and

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5 (p) Without the prior written consent of Grantee, which Grantee may withhold, transferring, encumbering, selling, leasing, or otherwise separating the mineral, air or water rights for the Property; changing the place or purpose of use of the above and below ground water rights; abandoning or allowing the abandonment of, by action or inaction, any water or water rights, ditch or ditch rights, spring rights, reservoir or storage rights, wells, ground water rights, or other rights in and to the use of water historically used on or otherwise appurtenant to the Property.

4. Grantor’s Duties. To accomplish the purposes of this Conservation Easement, Grantor, its successors and assigns shall:
(a) Undertake all reasonable actions to prevent the unlawful entry and trespass by persons whose activities may degrade or harm the conservation values of the Property; (b) Undertake all necessary actions to perfect and defend the rights of the Grantee and third-party beneficiaries identified in section 2 hereunder; (c) Comply with the terms of this Conservation Easement and cooperate with Grantee in the protection of the conservation values;
(d) Pursuant to the requirements set out herein, repair and restore damage to the Conservation Easement directly or indirectly caused by Grantor, Grantor’s guests, representatives, employees or agents, and third parties within Grantor’s control; provided, however, Grantor, its successors or assigns shall not engage in any repair or restoration work on the Property without first consulting with Grantee; and (e) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement and conducted by Grantor, and any such activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements.

5. Reserved Rights. Grantor reserves to itself, and to its personal representatives, heirs, successors, and assigns, all rights accruing from its ownership of the Property, including the right to engage in or to permit or invite others to engage in all uses of the Property that are consistent with the purposes of this Conservation Easement.

6. Grantee’s Remedies. USFWS and CDFW, as a third-party beneficiaries under this Conservation Easement, shall have the same rights as Grantee under this section to enforce the terms of this Conservation Easement. If Grantee determines that Grantor is in violation of the terms of this Conservation Easement or that a violation is threatened. Grantee shall give written notice to Grantor, CDFW, and USFWS of such violation and demand in writing the cure of such violation. If Grantor fails to cure the violation within thirty (30) days after receipt of written notice and demand from Grantee, or if the cure reasonably requires more than thirty (30) days to complete and Grantor fails to begin the cure within the 30-day period or fails to continue diligently to complete the cure, Grantee may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by Grantor with the terms of this Conservation Easement, to recover any damages to which Grantee may be entitled for violation by Grantor of the terms of this Conservation Easement or for any injury to the conservation values of the

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6 Property, to enjoin the violation, ex parte as necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies, or for other equitable relief, including, but not limited to, the restoration of the Property to the condition in which it existed prior to any such violation or injury, Prior to implementation of any remedial or restorative actions, Grantor shall consult with Grantee.

Without limiting Grantor’s liability therefor, Grantee may apply any damages recovered to the cost of undertaking any corrective action on the Property.

If Grantee, in its sole discretion, determines that circumstances require immediate action to prevent or mitigate damage to the conservation values of the Property, Grantee may pursue its remedies under this section without prior notice to Grantor or without waiting for the period provided for cure to expire. Grantee’s rights under this section apply equally to actual or threatened violations of the terms of this Conservation Easement Deed. Grantor agrees that Grantee’s remedies at law for any violation of the terms of this Conservation Easement Deed are inadequate and that Grantee shall be entitled to the injunctive relief described in this section, both prohibitive and mandatory, in addition to such other relief to which Grantee may be entitled, including specific performance of the terms of this Conservation Easement Deed, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. Grantee’s remedies described in this section shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity, including but not limited to, the remedies set forth in Civil Code sections 815, et seq., inclusive. The failure of Grantee to discover a violation or to take immediate legal action shall not bar Grantee from taking such action at a later time.

If at any time in the future Grantor, Grantee, or any successor in interest uses or threatens to use the Property for purposes inconsistent with this Conservation Easement, or Grantee or any successor in interest releases or abandons this Conservation Easement in whole or in part, then, notwithstanding Civil Code section 815.7, the California Attorney General, USFWS, or any entity or individual with a justifiable interest in the preservation of this Conservation Easement has standing as interested parties in any proceeding affecting this Conservation Easement.

6.1 Costs of Enforcement. Any costs incurred by Grantee, where Grantee is the prevailing party, in enforcing the terms of this Conservation Easement against Grantor, including, but not limited to, costs of suit and attorneys’ and experts’ fees, and any costs of restoration necessitated by Grantor’s negligence or breach of this Conservation Easement shall be borne by Grantor.

6.2 Grantee’s Discretion. Enforcement of the terms of this Conservation Easement Deed by Grantee shall be at the discretion of Grantee, and any forbearance by Grantee to exercise its rights under this Conservation Easement Deed in the event of any breach of any term of this Conservation Easement Deed by Grantor shall not be deemed or construed to be a waiver by Grantee of such term or of any subsequent breach of the same or any other term of this Conservation Easement Deed or of any of Grantee’s rights under this Conservation Easement Deed, No delay or omission by Grantee in the exercise of any right or remedy upon any breach by Grantor shall impair such right or remedy or be construed as a waiver.

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7 6.3 Acts Beyond Grantor’s Control. Nothing contained in this Conservation Easement Deed shall be construed to entitle Grantee to bring any action against Grantor for any injury to or change in the Property resulting from: (a) any natural cause beyond Grantor’s control, including, without limitation, fire not caused by Grantor, flood, storm, and earth movement, or any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the Property resulting from such causes; or (b) acts by Grantee or its employees, directors, officers, agents, contractors, or representatives.

6.4 CDFW and USFWS Right of Enforcement. All rights and remedies conveyed to Grantee under this Conservation Easement Deed shall extend to and are enforceable by CDFW and USFWS. These rights are in addition to, and do not limit, the rights of enforcement under any other applicable permit, agreement or authority, including, but not limited to, the rights of enforcement under the NCCP and Section 10(a) Permits.

7. Access. This Conservation Easement does not convey a general right of access to the public.

8. Costs and Liabilities. Grantor retains all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Property, Grantor agrees that Grantee shall have no duty or responsibility for the operation or maintenance of the Property, the monitoring of hazardous conditions thereon, or the protection of Grantor, the public or any third parties from risks relating to conditions on the Property.

8.1 Taxes; No Liens. Grantor shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Property by competent authority (collectively “taxes”), including any taxes imposed upon, or incurred as a result of, this Conservation Easement, and shall furnish Grantee with satisfactory evidence of payment upon request. Grantor shall keep Grantee’s interest in the Property free from any liens, including those arising out of any obligations incurred by Grantor or any labor or materials furnished or alleged to have been furnished to or for Grantor at or for use on the Property.

8.2 Hold Harmless. Grantor shall hold harmless, protect and indemnify Grantee, USFWS and CDFW, and their respective directors, officers, employees, agents, contractors, volunteers, and representatives and the heirs, personal representatives, successors and assigns of each of them (each an “Indemnified Party” and, collectively, “Indemnified Parties,”) from and against any and all liabilities, penalties, costs, losses, damages, expenses (including, without limitation, reasonable attorneys’ fees and experts’ fees), causes of action, claims, demands, orders, liens or judgments (each a “Claim” and, collectively, “Claims”), arising from or in any way connected with (a) injury to or the death of any person, or physical damage to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Property, regardless of cause, unless due solely to the negligence of the party to be indemnified; (b) Grantor’s obligations hereunder, including but not limited to the obligations specified in the (sub)sections above entitled “Grantor’s Duties,” “Costs and Liabilities,” and “Taxes; No Liens”; and (c) the existence or administration of this Conservation Easement. If any action or proceeding is brought against any of the Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee, defend such action

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8 or proceeding by counsel reasonably acceptable to the Indemnified Party or reimburse Grantee for all charges incurred in defending the action or proceeding.

8.3 Extinguishment. If circumstances arise in the future that render the purposes of this Conservation Easement impossible to accomplish, this Conservation Easement can only be terminated or extinguished, in whole or in part, by judicial proceedings in a court of competent jurisdiction. Grantor shall provide written notice to Grantee, USFWS, and CDFW at least fortyfive (45) days prior to taking any action to extinguish this Conservation Easement and prior to extinguishment shall provide a conservation easement at an alternative site to Grantee, or another entity or organization authorized to acquire and hold conservation easements under California Civil Code section 815.3 (or any successor provision then applicable) or the laws of the United States, that has been approved in writing by USFWS and CDFW, or shall provide alternative mitigation acceptable to USFWS and CDFW and determined in writing by USFWS and CDFW to be adequate to mitigate for the impacts to the species covered under the NCCP Permit and Section 10(a) Permit. Any proceeds fr om e x t i n g u is h me n t s h a l l b e u s e d in a manner determined in writing by USFWS and CDFW to be consistent with the purposes of this Conservation Easement and Grantor’s mitigation obligations under the NCCP Permit and Section 10(a) Permit.

8.4 Condemnation.
(a) This Conservation Easement is a “conservation easement” as defined in California Code of Civil Procedure section 1240.055(a)(1) and constitutes “property appropriated to public use” as defined in California Code of Civil Procedure section 1240.055(a)(3). CDFW and USFWS are public entities that imposed conditions upon issuance of the NCCP Permit and Section 10(a) Permit that were satisfied, in whole or in part, by the creation of this Conservation Easement, as described in California Code of Civil Procedure section 1240.055(a)(3).
(b) A person authorized to acquire property for public use by eminent domain shall seek to acquire the Property, if at all, only as provided in California Code of Civil Procedure section 1240.055. The purposes of the Conservation Easement are presumed to be the best and most necessary public use as defined at Code of Civil Procedure section 1240.680, notwithstanding Code of Civil Procedure sections 1240.690 and 1240.700. If any person seeks to acquire the Property for public use, Grantee shall immediately provide written notice to USFWS and CDFW and comply with all obligations of the holder of a conservation easement under California Code of Civil Procedure section 1240.055, as applicable. (c) In the event that the Property is acquired, or authorized to be acquired, under eminent domain by the Federal Government, or any department or agency thereof, the Grantee, within 15 days of receipt of any notice of such acquisition or intent to acquire, shall send a copy of such notice by first-class mail to USFWS and CDFW; and shall notify the person who has acquired or is seeking to acquire the property that CDFW and USFWS, as public entities that imposed conditions upon issuance of the NCCP Permit and Section 10(a) Permit that were satisfied, in whole or in part, by the creation of the Conservation Easement, was sent a copy of the notice pursuant to this paragraph.
(d) Grantee shall use any proceeds received from condemnation of the Property in a manner determined by USFWS and CDFW in writing to be consistent with the purposes of this Conservation Easement and Grantor’s mitigation obligations under the NCCP

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9 Permit and Section 10(a) Permit. If the Conservation Easement is condemned, the net proceeds from the condemnation shall also be used in compliance with California Government Code section 65966(j).

9. Assignment by Grantee. This Conservation Easement is transferable, but Grantee or any successor in interest shall give Grantor, USFWS, and CDFW, at least thirty (30) days prior written notice of the transfer. Grantee or any successor in interest may assign its rights and obligations under this Conservation Easement only in favor of an entity or organization authorized to acquire and hold conservation easements pursuant to Civil Code section 815.3 and reasonably acceptable to USFWS and CDFW. Grantee or any successor in interest shall require the assignee to agree in writing that the conservation purposes that this Deed is intended to advance shall continue to be fulfilled by such assignee in accordance with the terms of this Conservation Easement Deed, the NCCP Permit and the Section 10(a) Permit, and shall require the assignee to record the assignment in the county where the Property is located. The failure of Grantee to perform any act provided in this section shall not impair the validity of this Conservation Easement or limit its enforcement in any way. Any transfer under this section is subject to the requirements of the section below entitled “No Merger.”

10. Release or Abandonment. Grantee or any successor in interest shall not release, modify, relinquish or abandon its rights and obligations under this Conservation Easement without the prior written consent of USFWS and CDFW.

11. Subsequent Transfers. Grantor agrees to incorporate the terms of this Conservation Easement Deed in any deed or other legal instrument by which Grantor divests itself of any interest in all or any portion of the Property, including, without limitation, a leasehold interest.

Grantor agrees that the deed or other legal instrument shall also incorporate by reference the MSHCP, Implementing Agreement, NCCP Permit, and Section 10(a) Permit and any amendments thereto. Grantor further agrees to give written notice to Grantee, USFWS and CDFW of the intent to transfer any interest in the Property at least thirty (30) days prior to the date of such transfer. Grantee, USFWS and CDFW shall have the right to prevent subsequent transfers in which prospective subsequent claimants or transferees are not given notice of the covenants, terms, conditions and restrictions of this Conservation Easement Deed. The failure of Grantor or Grantee to perform any act provided in this section shall not impair the validity of this Conservation Easement Deed or limit its enforceability in any way. Any transfer under this section is subject to the requirements of the section below entitled “No Merger.”

12. Dissolution of Grantee. Grantee shall immediately transfer the Conservation Easement and deliver any and all monies it is then holding for purposes of this Conservation Easement, to an entity or other non-profit organization in accordance with the section above entitled “Assignment by Grantee”, if any of the following occurs: (a) Grantee dissolves; (b) Grantee is the subject of a voluntary or involuntary petition in bankruptcy; (c) Grantee is unable to carry out its obligations under this Conservation Easement; or (d) Grantor reasonably determines, with the concurrence of USFWS and CDFW, that any monies held by Grantee, or its successor entity, are not being held, managed, invested, or disbursed for conservation purposes consistent with this Conservation Easement and the MSHCP, Implementing Agreement, NCCP Permit, Section 10(a) Permit, and other legal requirements.

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10 13. No Merger. The doctrine of merger is not intended to apply and shall not operate to extinguish this Conservation Easement if the Conservation Easement and the Property become vested in the same party. If, despite this express intent, the doctrine of merger applies to extinguish the Conservation Easement then, unless Grantor, Grantee, USFWS, and CDFW otherwise agree in writing, a replacement conservation easement or restrictive covenant containing the same protections embodied in this Conservation Easement shall promptly be recorded against the Property by Grantee, or its successor in interest, in favor of a third party approved in writing by USFWS and CDFW to ensure that the mitigation obligations required under the NCCP Permit and Section 10(a) Permit, which include conservation of the Property in perpetuity through execution and recordation of a conservation easement or equivalent legal mechanism, and the purposes of California Civil Code section 815, are fulfilled. Until such replacement conservation easement or equivalent legal mechanism is executed and recorded, Grantee or its successor in interest shall continue to protect the Property in accordance with the terms of the original Conservation Easement. Any and all terms and conditions of this Conservation Easement shall be deemed covenants and restrictions upon the Property, which shall run with the land according to California law and otherwise exist in perpetuity.

14. Notices. Any notice, demand, request, consent, approval, or communication that Grantor or Grantee desires or is required to give to the other shall be in writing, with a copy to USFWS and CDFW, and be served personally or sent by recognized overnight courier that guarantees next-day delivery or by first class mail, postage fully prepaid, addressed as follows:

To Grantor:

City of Palm Desert
Palm Desert City Hall
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attention: City Manager
To Grantee:

Coachella Valley Conservation Commission
74-199 El Paseo, Suite 100
Palm Desert, California 92260
Attention: Executive Director
With a copy:

To CDFW:

California Department of Fish and Wildlife
Office of the General Counsel
1416 Ninth Street, 12th Floor
Sacramento, California 95814-2090
Attn: General Counsel

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11 To USFWS:

U.S. Fish and Wildlife Service
Attn: Field Supervisor
777 E. Tahquitz Canyon Way, Suite 208
Palm Springs, CA 92262
or to such other address as either party shall designate by written notice to the other. Notice shall be deemed effective upon delivery in the case of personal delivery or delivery by overnight courier or, in the case of delivery by first class mail, five (5) days after deposit into the United States mail.

The parties agree to accept facsimile signed documents and agree to rely upon such documents as if they bore original signatures. Each party agrees to provide to the other parties, within seventytwo (72) hours after transmission of such a facsimile, the original documents that bear the original signatures.

15. Amendment. This Conservation Easement Deed may be amended by Grantor and Grantee only by mutual written agreement, with the written approval of USFWS and CDFW (which approval shall not be unreasonably withheld or delayed). Any such amendment shall be consistent with the purposes of this Conservation Easement and shall not affect its perpetual duration. Any such amendment shall be recorded in the official records of Riverside County, State of California.

16. No Hazardous Materials Liability. Grantor represents and warrants that it has no knowledge of any release, threatened release, storage or disposal of Hazardous Materials (defined below) in, on, under, about or affecting the Property.

16.1 Without limiting any other indemnification obligations set out hereinabove, Grantor agrees to indemnify, protect and hold harmless the Indemnified Parties (as defined hereinabove) against any and all Claims (as defined hereinabove) arising from or connected with any Hazardous Materials present, alleged to be present, or otherwise associated with the Property at any time, except any Hazardous Materials placed, disposed or released by Grantee, its employees or agents. This release and indemnification includes, without limitation, Claims for injury to or death of any person or physical damage to any property; and the violation or alleged violation of, or other failure to comply with, any Environmental Laws (defined below). If any action or proceeding is brought against any of the Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee, defend such action or proceeding by counsel reasonably acceptable to the Indemnified Party or reimburse Grantee for all charges incurred in defending the action or proceeding.

16.2 Despite any contrary provision of this Conservation Easement Deed, the parties do not intend this Conservation Easement to be, and this Conservation Easement shall not be, construed such that it creates in or gives to Grantee any of the following:
(a) The obligations or liabilities of an “owner” or “operator,” as those terms are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. sections 9601, et seq.; hereinafter, “CERCLA”); or

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12 (b) The obligations or liabilities of a person described in 42 U.S.C. section 9607(a)(3) or (4); or
(c) the obligations of a responsible person under any applicable Environmental Laws: or
(d) The right to investigate and remediate any Hazardous Materials associated with the Property; or
(e) Any control over Grantor’s ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Property.

16.3 The term “Hazardous Materials” includes, without limitation, (a) material that is flammable, explosive or radioactive; (b) petroleum products, including by-products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in CERCLA; the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901, et seq .); the Hazardous Materials Transportation Safety and Security Reauthorization Act of 2005 (49 U.S.C. sections 5101, et seq.); the Hazardous Materials Transportation Act (49 U.S.C. sections 6901 et seq.); the Hazardous Waste Control Law (California Health & Safety Code sections 25100, et seq.); the Carpenter-Presley-Tanner Hazardous Substance Account Act (California Health & Safety Code section 25300, et seq.); and in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state or local laws, ordinances, rules, regulations or orders now in effect or enacted after the date of this Conservation Easement Deed. The term “Environmental Laws” includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials.

16.4 Grantor represents, warrants and covenants to Grantee that Grantor’s activities (including those of its agents, employees, invitees and contractors) upon and use of the Property will comply with all Environmental Laws.

17. General Provisions.

17.1 Controlling Law. The interpretation and performance of this Conservation Easement Deed shall be governed by the laws of the State of California, disregarding the conflicts of law principles of such state, and by applicable federal law (including the FESA).

17.2 Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Conservation Easement Deed shall be liberally construed to affect the purposes of this Conservation Easement and the policy and purpose of Civil Code sections 815, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Conservation Easement that would render the provision valid shall be favored over any interpretation that would render it invalid.

17.3 Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Conservation Easement Deed, such action shall not affect the remainder of this Conservation Easement Deed. If a court of competent jurisdiction voids or invalidates the

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72500.00001\7726262.5
13 application of any provision of this Conservation Easement Deed to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances.

17.4 Entire Agreement. This instrument sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Conservation Easement. No alteration or variation of this instrument shall be valid or binding unless contained in a written amendment in compliance with all provisions herein.

17.5 No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Grantor’s title in any respect.

17.6 Successors. The covenants, terms, conditions, and restrictions of this Conservation Easement Deed shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall constitute a servitude running in perpetuity with the Property.

17.7 Termination of Rights and Obligations. A party’s rights and obligations under this Conservation Easement Deed terminate upon the transfer of its interest in the Conservation Easement or Property, except that liability for acts or omissions occurring prior to transfer shall survive transfer.

17.8 Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon its construction or interpretation.

17.9 Warranty. Grantor represents and warrants that there are no outstanding mortgages, liens, encumbrances or other interests in the Property which have not been expressly subordinated to this Conservation Easement Deed, and that the Property is not subject to any other conservation easement or interest that is adverse to this Conservation Easement.

17.10 Additional Easements. Grantor shall not grant any additional easements, rights of way or other interests in the Property (other than a security interest that is subordinate to this Conservation Easement Deed), or grant or otherwise abandon or relinquish any water agreement relating to the Property, without first obtaining the written consent of Grantee, USFWS and CDFW. Grantee, USFWS and CDFW may withhold such consent if it determines that the proposed interest or transfer is inconsistent with the purposes of this Conservation Easement or will impair or interfere with the conservation values of the Property. This section shall not prohibit transfer of a fee or leasehold interest in the Property that is subject to this Conservation Easement Deed and otherwise complies with the terms of this Deed.

17.11 Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by both parties. Each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling,

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14 17.12 Recording. Grantee shall record this Conservation Easement in the Official Records of the County in which the Property is located, and may re-record it at any time as Grantee deems necessary to preserve its rights in this Conservation Easement.

IN WITNESS WHEREOF Grantor has executed this Conservation Easement Deed the day and year first above written.

GRANTOR:

City of Palm Desert
By: ____________________________
L. Todd Hileman
City Manager
GRANTEE:

Coachella Valley Conservation Commission
By: ____________________________
Tom Kirk
Executive Director

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15 CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the foregoing Conservation Easement Deed by _________________ dated is hereby accepted by the undersigned officer on behalf of the Grantee, Coachella Valley Conservation Commission, pursuant to authority conferred by the Commission, and the Grantee consents to recordation thereof by its duly authorized officer.

COACHELLA VALLEY CONSERVATION COMMISSION
By: _______________________________
Tom Kirk
Executive Director
Date: ________________________________

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16 Exhibit A
Legal Description Corresponding Assessor
Parcel Number
Ownership

1. 55.05 ACRES IN PAR 2 PM 163/030 PM 640 080 009 City of Palm Desert

2. 27.02 ACRES M/L IN POR SW 1/4 OF 640 180 016 City of Palm Desert

3. .47 ACRES IN LOT 1 MB 223/019 TR 640 350 001 City of Palm Desert

4. .28 ACRES IN LOT 2 MB 223/019 TR 640 350 002 City of Palm Desert

5. .28 ACRES IN LOT 3 MB 223/019 TR 640 350 003 City of Palm Desert

6. .31 ACRES IN LOT 4 MB 223/019 TR 640 350 004 City of Palm Desert

7. .24 ACRES IN LOT 5 MB 223/019 TR 640 350 005 City of Palm Desert

8. 24 ACRES IN LOT 6 MB 223/019 TR 640 350 006 City of Palm Desert

9. .24 ACRES IN LOT 7 MB 223/019 TR 640 350 007 City of Palm Desert

10. .28 ACRES IN LOT 8 MB 223/019 TR 640 350 008 City of Palm Desert

11. .30 ACRES IN LOT 9 MB 223/019 TR 640 350 009 City of Palm Desert

12. .38 ACRES IN LOT 10 MB 223/019 TR 640 350 010 City of Palm Desert

13. .37 ACRES IN LOT 11 MB 223/019 TR 640 350 011 City of Palm Desert

14. .31 ACRES IN LOT 12 MB 223/019 TR 640 350 012 City of Palm Desert

15. .35 ACRES IN LOT 13 MB 223/019 TR 640 350 013 City of Palm Desert

16. .31 ACRES IN LOT 14 MB 223/019 TR 640 350 014 City of Palm Desert

17. .32 ACRES IN LOT 15 MB 223/019 TR 640 350 015 City of Palm Desert

18. .34 ACRES IN LOT 16 MB 223/019 TR 640 350 016 City of Palm Desert

19. .26 ACRES IN LOT 17 MB 223/019 TR 640 350 017 City of Palm Desert

20. .39 ACRES IN LOT 18 MB 223/019 TR 640 350 018 City of Palm Desert

21. 1.97 ACRES IN LOT 19 MB 223/019 TR 640 350 019 City of Palm Desert

22. .92 ACRES IN LOT 20 MB 223/019 TR 640 350 020 City of Palm Desert

23. 1.14 ACRES IN LOT 21 MB 223/019 TR 640 350 021 City of Palm Desert

24. 1.67 ACRES IN LOT 22 MB 223/019 TR 640 350 022 City of Palm Desert

25. 2.10 ACRES IN LOT 23 MB 223/019 TR 640 350 023 City of Palm Desert

26. 3.21 ACRES IN POR LOT A AND LOTS B 640 350 024 City of Palm Desert

27. 4.39 ACRES IN LOT 29 MB 223/019 TR 640 360 001 City of Palm Desert

28. 3.89 ACRES IN LOT 28 MB 223/019 TR 640 360 002 City of Palm Desert

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17 29. 4.49 ACRES IN LOT 27 MB 223/019 TR 640 360 003 City of Palm Desert

30. .99 ACRES IN LOT 26 MB 223/019 TR 640 360 004 City of Palm Desert

31. 1.12 ACRES IN LOT 25 MB 223/019 TR 640 360 005 City of Palm Desert

32. .99 ACRES M/L IN LOT 24 MB 223/019 640 360 006 City of Palm Desert

33. .06 ACRES IN LOT D MB 223/019 TR 640 360 007 City of Palm Desert

34. 1.44 ACRES IN POR LOT A MB 223/019 640 360 008 City of Palm Desert

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18 Exhibit B
Existing Trails

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 15, 2024
PREPARED BY: Eric Ceja, Director of Economic Development REQUEST: RECEIVE AND FILE AN INFORMATIONAL REPORT FOR THE CITYOWNED PARCEL LOCATED AT THE NORTHEAST CORNER OF

OCOTILLO DRIVE AND TUMBLEWEED LANE
RECOMMENDATION:

Receive and file an informational report for the City-owned parcel located at the northeast corner of Ocotillo Drive and Tumbleweed Lane.

BACKGROUND/ANALYSIS:

During the 2023 Council Goal Study Session the Council adopted a series of Goals and Research items for staff to complete. One of those research items was to explore options for a parking lot at the City-owned parcel at the northeast corner of Ocotillo Drive and Tumbleweed Lane (shown below).

PIQ

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City of Palm Desert
Ocotillo Drive and Tumbleweed Lane

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In 2008, the City acquired the 0.53-acre site with the intent of developing a public parking lot. In 2011, the City relocated residents and demolished the 12-unit apartment complex that occupied the site. In 2014, in Closed Session, the City Council directed staff to “proceed with the necessary steps required to utilize designated Bond Proceeds for the construction of a gradelevel parking facility on the property.” However, due to on-going development interest in the area, including how the City-owned parcel could contribute to development in the area, the project was put on hold. The site remains vacant with sparse native landscape.

Yield Study and Cost Estimate
The City Engineer was able to provide a rough yield study for the number of parking spaces that could be developed on this site. Approximately 37 parking stalls can be developed on the site with vehicle driveway access to both Tumbleweed Lane and Ocotillo Drive. The cost estimate associated with this lot, including engineering, construction, and contingency, is just under $500,000.

Parking Demand and new Development
In 2016, as part of the City’s General Plan update, the City contracted with Fehrs and Peers for a parking demand study. The study analyzed parking demand and availability along El Paseo and Highway 111 between Monterey Avenue and Portola Avenue. The study concluded that there is sufficient parking overall within the Downtown boundaries and that approximately 45% of spaces are occupied at peak times. For the area around Ocotillo Drive and Tumbleweed Lane, the study showed that, at peak demand, the parking area behind the Daily Grill was 60% occupied and the parking area adjacent to the City-owned site at the Galleria was less than 20% occupied. Although the study was completed in 2016, there have been no significant building additions or square footage increases in this area that would have created additional parking demand.

Legal Review:

This report has been reviewed by the City Attorney’s office.

Strategic Plan:

Staff’s recommendation does not accomplish any of the priorities identified in the City’s Strategic Plan.

Appointed Body Recommendation:

Staff reviewed this information with the Economic Development Subcommittee (EDS) on January 9, 2024. Based on the information described above the EDS recommended not moving forward with the project until additional parking demand and parking need in the immediate area is demonstrated.

FINANCIAL IMPACT:

There is no fiscal impact associated with staff’s recommendation.

ATTACHMENTS:

1. Ocotillo & Tumbleweed Lot

2. Ocotillo & Tumbleweed Parking – Prelim Cost Estimate

3. Fehrs and Peers Downtown Parking Management Plan

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Palm Desert City CouncilFebruary 15, 2024

Palm Desert City Council
February 15, 2024