Palm Desert City Council
February 13, 2025

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 13, 2025
PREPARED BY: Michelle Nance, Acting Assistant City Clerk SUBJECT: ADOPTION OF ORDINANCE 1425 TO AMEND SECTIONS OF TITLE 25

OF THE PALM DESERT MUNICIPAL CODE AND FINDING THE ACTION

EXEMPT PURSUANT TO THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
RECOMMENDATION:

Adopt Ordinance No. 1425 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTIONS 25.60.080, 25.60.160, AND

25.78.020(C) OF PALM DESERT MUNICIPAL CODE TITLE 25 AND MAKING A FINDING

THAT THE ACTION IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).”
BACKGROUND/ANALYSIS:

On January 9, 2025, the City Council unanimously introduced Ordinance No. 1425 for first reading. This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30 days from adoption.

FINANCIAL IMPACT:

There is no direct financial impact with this action.

ATTACHMENTS:

Ordinance No. 1425
345
346
ORDINANCE NO. 1425

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, AMENDING SECTIONS 25.60.080, 25.60.160, AND 25.78.020(C) OF PALM DESERT MUNICIPAL CODE TITLE 25 AND

MAKING A FINDING THAT THE ACTION IS EXEMPT FROM FURTHER

ENVIRONMENTAL REVIEW PURSUANT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA).

CASE NOS. ZOA 24-0004
WHEREAS, the City of Palm Desert, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, Government Code Section 65800 et seq. provides for the amendment of any and all adopted City of Palm Desert (“City”) zoning laws, ordinances, rules and regulations; and
WHEREAS, the Zoning Ordinance Amendment (ZOA) is initiated by the Palm Desert Director of Community Development and modifies sections of the Palm Desert Municipal Code (PDMC) Title 25 (Zoning) to amend and expand requirements for public notice for public hearings and community engagement; and WHEREAS, the City has complied with the requirements of the Local Planning and Zoning Law (Government Code section 65100 et seq.), and the City’s applicable ordinances and resolutions with respect to approval of amendments to Title 25 of the Palm Desert Municipal Code (“Zoning Ordinance”); and
WHEREAS, under Section 21067 of the Public Resources Code, Section 15367 of the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), and the City of Palm Desert’s (“City’s”) Local CEQA Guidelines, the City is the lead agency for the Project; and
WHEREAS, the Project has complied with the requirements of the "City of Palm Desert Procedure for Implementation of CEQA” Resolution No. 2024-035, in that the Director of Development Services has determined that the Project will not have a foreseeable significant impact on the environment and that the Project is eligible for an exemption exempt Section 15061(b)(3) General Rule of the CEQA Guidelines; therefore, no further environmental review is necessary at this time; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred; and
WHEREAS, on December 17, 2024, the Planning Commission of the City of Palm Desert, California held a duly noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning this proposed Ordinance.

Following the public hearing, the Planning Commission adopted Planning Commission 347
Ordinance No. 1425 Page 2
Resolution No. 2887 to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
WHEREAS, on January 9, 2025, the City Council held a duly-noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance, (2) the policy considerations discussed therein, and (3) the consideration and recommendation by the City’s Planning Commission; and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

NOW, THEREFORE, the City Council of the City of Palm Desert does ordain as follows:

SECTION 1. Incorporation. The recitals above are each incorporated by reference and adopted as findings by the City Council.

SECTION 2. CEQA. The City Council finds that the adoption of this ordinance is not a “project,” as defined in the California Environmental Quality Act (CEQA) because it does not have the potential to result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and concerns general policy and procedures.

SECTION 3. Amendment. The City Council of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the Palm Desert Municipal Code amendments to Title 25 as shown in “Exhibit A”, which is attached hereto and incorporated herewith.

SECTION 4. Effective Date. This Ordinance takes effect 30 days after its adoption.

SECTION 5. Publication. The City Clerk is directed to certify to the adoption of this Ordinance and post or publish this Ordinance as required by law.

SECTION 6. Custodian of Records. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at 73-510 Fred Waring Drive, Palm Desert, CA.

SECTION 7. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof. 348
Ordinance No. 1425 Page 3
ADOPTED ON _________________, 2025.

JAN C. HARNIK
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. 1425 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on January 9, 2025, and adopted at a regular meeting of the City Council held on __________, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on _____________, 2025.

ANTHONY J. MEJIA

CITY CLERK
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Ordinance No. 1425 Page 4
“EXHIBIT A”

ZONING ORDINANCE AMENDMENT
SECTION 1. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.60.060 is hereby amended as follows:

25.60.060. Public Hearing and Public Notice.

A. Public hearing required. The following procedures shall govern the notice and public hearing, where required pursuant to this title. The designated approving authority shall hold a public hearing to consider all applications for a conditional use permit, variance, architectural review, precise plan, planned development, specific plan, zoning code and/or map amendment, pre-zoning, development agreement, and General Plan amendment considered by the Commission or Council.

B. Notice of hearing. Pursuant to California Government Code Sections 65090 to 65094, not less than 10 days before the scheduled date of a hearing, public notice shall be given of such hearing in the manner listed below. The notice shall state the date, time, and place of hearing, identify the hearing body, and provide a general description of the matter to be considered and the real property which is the subject of the hearing.

1. Notice of public hearing shall be published in at least one newspaper of general circulation in the City.

2. Except as otherwise provided herein, notice of the public hearing shall be mailed, postage prepaid, to the owners of real property, inclusive of any association governing a common interest development (as defined in Part 5 of Division 4 of the California Civil Code), within a radius of five hundred (500) feet of the exterior boundaries of the property involved in the application, using for this purpose the last known name and address of such owners, or the name of any association of a common interest development, as applicable, as shown upon the current tax assessor's records of Riverside County or the Official Records of Riverside County.

The radius may be increased as determined to be necessary and desirable by the Director based on the nature of the proposed project. If the number of owners exceeds 1,000, the City may, in lieu of mailed notice, provide notice by placing notice in one newspaper of general circulation within the City.
a. Public notification for projects 5 acres or more shall be 1,000 feet for public notifications related to development projects and to ensure adequate Community Engagement efforts are achieved 350
Ordinance No. 1425 Page 5
pursuant to requirements in Section 25.60.160.
b. Public notification for Hillside Development Plans shall comply with Section 25.78.020(C) of this Title.
c. Hearings before the Architectural Review Commission for Design Review associated with an application requiring approval by the Planning Commission and/or City Council will be noticed in accordance with the requirements of this section.

3. Notice of the public hearing shall be mailed, postage prepaid, to the owner of the subject real property or the owner's authorized agent and to each local agency expected to provide water, sewerage, streets, roads, schools, or other essential facilities or services to the proposed project.

4. Notice of the public hearing shall be posted at City Hall.

5. Notice of the public hearing shall be mailed to any person who has filed a written request for notice.

6. In addition to the notice required by this section, the City may give notice of the hearing in any other manner it deems necessary or desirable.

C. Notice of Zoning Administrator decision.

1. Notice. The notice of decision shall be provided, in writing, to the applicant, interested parties, neighborhood associations within proximity of the subject site, and properties within five hundred (500) feet of the property. The notice shall include:
i. A brief statement explaining the criteria and standards considered relevant to the decision.
ii. A statement of the standards and facts relied upon in rendering the decision. iii. Findings as listed for each entitlement or justification for the decision based on the criteria, standards, and facts set forth.
iv. An explanation of appeal rights and appeal deadlines.

2. Decision. The ZA may approve, approve with conditions, or deny the application. Decisions shall be based on standards and criteria set forth within this code and shall be accompanied by brief, written findings, and a determination.

3. Appeal. A ZA determination may be appealed to the Commission for a final determination according to Section 25.60.080.

D. Requests for notification. Any person who requests to be on a mailing list for 351
Ordinance No. 1425 Page 6
notice of hearing shall submit such request in writing to the Department. The City may impose a reasonable fee for the purpose of recovering the cost of such notification.

E. Receipt of notice. Failure of any person or entity to receive any properly issued notice required by law for any hearing required by this title shall not constitute grounds for any court to invalidate the actions of a designated approving authority for which the notice was given.

F. Hearing procedure. Hearings as provided for in this chapter shall be held at the date, time, and place for which notice has been given as required in this chapter.

The approving authority shall conduct the public hearing and hear testimony from interested persons. The summary minutes shall be prepared and made part of the permanent file of the case. Any hearing may be continued to a date certain. If the hearing is not continued to a specific date/time, then the hearing shall be renoticed.

G. On-Site Public Notice Signs

1. Applicability. All projects requiring a public hearing before the Planning Commission and/or City Council shall be required to post one or more public notice signs on the property, which is the subject of the proposed development, in accordance with the requirements of this subsection.

2. Public Notice Sign Requirements.
a. The applicant shall post informational signs on the property that is the subject of the proposed development. The signs shall be unilluminated, four feet by four feet in size, and shall include a description of the proposed development, the date, time, and location of the public hearing, and the location where further information can be obtained.
b. The sign shall be placed in an area of the property most visible to the public, not more than five feet from the front property line in residential areas, and not more than three feet from the front property line in commercial and industrial areas. Placement of the sign shall not be permitted to cause traffic sight obstructions. c. For properties less than five acres in size, one sign per street frontage shall be posted on site.
d. For properties greater than five acres in size, one sign per five hundred feet of street frontage shall be posted on site. For properties that are unusually shaped or within a unique location, the planning director may determine the location for sign posting or require additional notice of the proposed project.
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Ordinance No. 1425 Page 7
e. For projects that may change or intensify the existing use or zoning, the planning director may require supplemental or larger signs or both.

3. Sign Posting Acknowledgement. A completed Sign Posting Acknowledgment form prepared and signed and dated by the applicant or an authorized representative of the applicant, which shall contain photographic evidence of the installed signs, shall be submitted to the Development Services Department no later than ten calendar days prior to the scheduled public hearing. This document shall be mailed or dropped off or emailed to the assigned Project Planner.

4. Timing of Sign Installation.
a. Signs shall be installed no later than ten (10) days prior to the scheduled date of the public hearing.
b. Posted signs must remain visible on the property until the last decision-making action specified by the Development Services Department.

5. Maintenance.
a. The applicant and owner shall be responsible for maintaining the noticeboard such that it is readable during the period it is required to be in place. If the sign or structure is damaged, defaced or otherwise made illegible, the applicant/owner shall replace the sign in accordance with the standards of this subsection. The applicant shall pay the replacement cost of such board.

6. Removal
a. The applicant shall remove the sign(s) from the project site no later than 10 calendar days following the end of the appeal period for the project.
(Ord. 1259 § 1, 2013; Ord. 1279 § 10, 2015; Ord. 1303 § 6, 2016; Ord. 1375 § 2, 2022) SECTION 2. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.60.160 is hereby amended as follows:

25.60.160. Community Engagement.

A. Intent and purpose. It is the intent of this chapter that each project applicant prepare and submit to the City a "Community Engagement Plan" to implement requirements for public notice, community engagement, and public outreach. The intent is to present project information and engage in public outreach meetings 353
Ordinance No. 1425 Page 8
early in the development review process of new projects and address concerns of the public prior to an action of the approving body. The Community Engagement Plan shall provide residents within the required notification radius with an opportunity to actively participate in the city’s development review procedures for discretionary projects to help shape the direction of the City’s development.

B. Scope of regulations. This chapter shall be applied pursuant to the adopted "Resolution of the City Council of the City of Palm Desert Establishing Policies related to Community Engagement (Resolution No. 2021-50)." Requirements related to community engagement for new projects are as follows:

1. Developers must prepare and submit a Community Engagement Plan to the Development Services Department at the same time a development application is submitted for any project that is located on a project site of five (5) acres, or greater, and requires discretionary approval, including, but not limited to, any request for a discretionary approval of a Precise Plan, Tentative Map, Specific Plan, General Plan Amendment, Change of Zone, Development Agreement, Variance, or combination thereof. The Director of Development Services may require a Community Engagement Plan for any project when due to extraordinary or exceptional factors.

2. Comply with the public notification requirements of Section 25.60.060 of this Title.

3. The Community Engagement Plan must contain the following:
i. Developer's method(s) of communication with the public. Proposed location(s) of public outreach shall be provided;
ii. Samples of the written publications distributed to the public that include any informational items of the project. Written publications and invitations should comply with the following:
a) The written publication should include the date, time, and location of the scheduled community meeting.
b) The invitation to community meetings should include as much information about the project and request in the
application as possible to inform attendees of what is being proposed.
c) Community meetings should be located in the City of Palm Desert and as close to the subject property as is practical to minimize the distance that attendees need to travel to
participate.
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Ordinance No. 1425 Page 9
d) Community meetings should be scheduled to avoid, to the extent feasible, any conflict with other publicly scheduled meetings.
e) Community meetings should be scheduled during nonbusiness hours and at reasonable times to allow attendees who work during the day an opportunity to attend.
f) Applicants may also, in addition to the in-person meeting, provide an option for participating by teleconference.

4. For any application that requires a Community Engagement Plan, the applicant shall host a minimum of two community meetings to provide information and receive feedback about the project. Follow-up meetings may be required by the Director of Development Services.
i. The first community meeting shall occur not more than thirty (30) days prior to, and not later than twenty (20) days after, the date when the project application is submitted to the City. To the extent practical, the first community meeting should occur prior to application submittal to the City.
ii. The second community meeting shall occur within thirty (30) days after the date when the project is deemed or determined to be complete.
iii. There shall be at least one (1) day between the required community meetings in sub-paragraphs (a) and (b), above.
iv. The Director of Development Services may approve alternative scheduling of the required community meetings as reasonably necessary.
v. The applicant is solely and exclusively responsible for holding the community meetings in accordance with this section. The community meetings shall not be considered a public hearing or meeting on the project.

5. The applicant shall prepare a Community Engagement Report summarizing the outcome of the community meetings required by this section, and submit the Community Engagement Report to the City prior to the first public hearing or other public meeting for the project held by the City. The Community Engagement Report will be included as an exhibit as a part of the agenda report that is published prior to the public hearing. The Community Engagement Report shall include the following:
i. Dates, times, and locations of all meetings that attendees were invited to attend to discuss the project and the subject request. 355
Ordinance No. 1425 Page 10
ii. The names and affiliation of those that attended that represent the applicant.
iii. The names and department of staff that attended the meeting. iv. A sign-in sheet listing the names of the attendees that participated in the process.
v. The applicant shall provide any written comments and/or a written summary of any significant issues or concerns raised by attendees during the community engagement meetings.

6. The applicant shall coordinate with staff for the notification of community meetings with property owners, including any association for a common interest development, within 1,000 feet of the proposed project.

7. City Staff is to be present at the meeting to observe, collect information, and provide answers, as needed, related to the General Plan, and applicable codes and ordinances of the City.
i. The applicant shall coordinate the scheduling of all community meetings required under this section with the City's project planner and include City staff in all notices of meetings.

8. The entitlements will include a condition of approval on residential and/or owner- occupied projects, that the applicant will disclose, as part of any closing documents, the City's General Plan and Housing Element sites adjacent to the project.

SECTION 3. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.72.020(C) is hereby amended as follows:

25.78.020(C) Procedure for Hillside Development Plan application

1. Application. The owner, authorized agent, or the purchaser with the consent of the owner may submit an application for development plan approval to the Department.

2. Notice. All development of parcels within the Hillside Planned Residential Zoning District that do not meet the exception's requirement as described in Section 25.10.050 shall require notice of a public hearing not less than 10 days or more than 30 days prior to the date of the hearing by publication in the newspaper of general circulation in the city and mailing notices via United States Postal Service to parties whose name appear on the latest adopted tax rolls of Riverside County as owning property within 4,000 feet of the exterior boundaries of the property that is the subject of the hearing, and by notification to all homeowners associations within the city south of Highway 111.
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Ordinance No. 1425 Page 11

3. The Commission shall hold a public hearing and make a recommendation to Council to approve the development plan if it finds the criteria set forth in this chapter have been satisfied subject to such conditions as it deems necessary. The Commission may deny the application if it finds the criteria are not being satisfied or that such application would be detrimental to the public peace, health, safety, or welfare. The decision of the Commission to deny the development plan shall be final unless appealed to the Council. 357
358

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 13, 2025
PREPARED BY: Erika Castellano, Senior Administrative Assistant SUBJECT: ACCEPTANCE OF A RESIGNATION FROM THE CIVIC ENGAGEMENT

COMMITTEE, PARKS AND RECREATION COMMITTEE, AND

HOMELESSNESS TASKFORCE
RECOMMENDATION:

1. With regret, accept the resignation of Gregg Akkerman from the Civic Engagement Committee and Parks and Recreation Committee.

2. With regret, accept the resignation of Christopher Schachter from the Homelessness Taskforce.

BACKGROUND/ANALYSIS:

On June 24, 2021, Gregg Akkerman was appointed to the Parks and Recreation Committee for a term ending June 30, 2025. On July 1, 2024, he was appointed to the Civic Engagement Committee for a term ending June 30, 2028. On January 6, 2025, Mr. Akkerman informed the City of his resignation effective immediately.

On September 14, 2023, Christopher Schachter was appointed to the Homelessness Taskforce for a term ending June 30, 2027. On January 23, 2025, Mr. Schacter informed the City of his resignation effective immediately.

Legal Review:

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

FINANCIAL IMPACT:

There is no fiscal impact associated with this report.
359
360

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 13, 2025
PREPARED BY: Erika Castellano, Senior Administrative Assistant Anthony J. Mejia, City Clerk
SUBJECT: APPOINT MAYOR HARNIK TO THE CITY SELECTION COMMITTEE OF

RIVERSIDE COUNTY AND MAYOR PRO TEM TRUBEE AS THE

ALTERNATE
RECOMMENDATION:

Appoint Mayor Harnik to the City Selection Committee of Riverside County and Mayor Pro Tem Trubee as the alternate.

BACKGROUND/ANALYSIS:

The purpose of the City Selection Committee is to appoint city representatives to boards, commissions, and agencies as required by law. Due to an oversight, the City Selection Committee of Riverside County’s (Committee) rules and regulations state that membership shall consist of the Mayor of each city within the County of Riverside. When the Mayor is unable to attend a meeting of the Committee, the Mayor shall designate another member of the City’s legislative body to attend and vote at the meeting. As a result, it is recommended that Mayor Harnik and Mayor Pro Tem Trubee be appointed to the Committee.

Legal Review:

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

FINANCIAL IMPACT:

There is no fiscal impact associated with this report.

ATTACHMENTS:

1. Updated 2025 Council Appointment List

2. County of Riverside Rules and Regulations of the City Selection Committee of Riverside County 361
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2025 City Council Liaison Assignments
GROUP 2025 PROPOSED
ATTENDEE(S) 2025 PROPOSED ALTERNATE(S) STAFF LIAISON MEETING DAY/TIME/LOCATION Annexation/Two x Two North Sphere -Merged (Mayor & MPT) Harnik/Trubee Nestande/Councilmembers Richard/Rosie As needed C V W D Water Issues 2x2 Committee (“H20
2 ") Pradetto Harnik/Councilmembers Martin As scheduled Cal Cities Annual Conf. - Voting Delegate & Alternate Trubee Quintanilla/Councilmembers Anthony Conference Date TBD California Joint Powers Ins. Authority Trubee Rsk Mgr/City Treas/Council Andrea & Amber July 23, 2025 CJPIA Ofc., LaPalma Chamber of Commerce Bd. of Directors Harnik Nestande/Councilmembers Eric 4 th Tuesday - 7:30 a.m., PDACC
Children’s Discovery Museum of the Desert Quintanilla Nestande/Councilmembers Veronica 3rd Wednesday - 4:00 p.m.

City Selection Committee Harnik Trubee/Councilmembers Anthony As needed Civic Engagement Committee (Palm Desert-2 Cncl) Quintanilla Trubee/Councilmembers Ryland 3rd Thursday, quarterly (Jan., April, July, Oct.), ACR Coachella Valley Animal Campus Trubee Quintanilla/Councilmembers Richard/Pedro first Thursday, bi-monthly at 9:30 a.m.

Coachella Valley Economic Partnership Bd. of Dir. (CVEP) Amy Lawrence Eric Ceja Amy/Eric 3 rd Wednesday - 8:00 a.m.

Coachella Valley Mountains Conservancy Trubee Nestande/Councilmembers Martin Bimonthly 2nd Monday - 3:00 p.m.

Cove Communities Public Safety Cmssn. (2-Cncl.) Quintanilla/Trubee Nestande/Councilmembers Chris As scheduled Cultural Arts Committee (Palm Desert) Nestande Councilmembers Erica/Amy 2 nd Wednesday - 9:00 a.m., ACR
Cultural Resources Preservation Committee (Palm Desert) Trubee Harnik/Councilmembers Richard/Rosie 4th Wednesady - 9:00 a.m., ACR CVAG Energy & Sustainability Committee Nestande Trubee/Councilmembers Martin 2 nd Thursday - 12:00 p.m.

CVAG Executive Committee Harnik Trubee/Councilmembers Last Monday - 4:30 p.m. (Gen. Assy 5/1-5/2/25) CVAG Homelessness Committee Pradetto Nestande/Councilmembers Chris/Ivan 3 rd Wednesday - 10:00 a.m.

CVAG Personnel Committee (if applicable) Trubee Harnik/Councilmembers Andrea As needed - Last Monday CVAG Public Safety Committee Quintanilla Trubee/Councilmembers Chris 2nd Monday - 9:00 a.m.

CVAG Transportation Committee Harnik Pradetto/Councilmembers Maritn 1st Monday - 10:00 a.m.

CVAG-Coachella Valley Conservation Commission Trubee Quintanilla/Councilmembers Martin 2 nd Thursday - 10:30 a.m.

CVAG Desert Community Energy Board Veronica Chavez Quintanilla/Councilmembers Chris 3 rd Monday - CVAG Office - 12:00 p.m. (Dec-Dark)
Desert Willow President’s Committee Harnik Trubee/Councilmembers Veronica/John 3 rd Tuesday - 10:00 a.m.

El Paseo Business Improvement District Board (Palm Desert) Harnik Nestande/Councilmembers Thomas 3 rd Thursday - 8:00 a.m., ACR
Finance Committee (Palm Desert) (Mayor & MPT) Harnik/Trubee Councilmembers Veronica Bimonthly 4th Tuesday - 10:00 a.m., ACR Historical Society (Palm Desert) Trubee Nestande/Councilmembers Richard/Rosie 3 rd Tuesday - 5:30 p.m.

Homelessness Taskforce (Palm Desert) Pradetto/Quintanilla Nestande/Councilmembers Chirs/Ivan Bimonthly 1st Monday - 9:00 a.m. ACR Housing Commission (Palm Desert) Pradetto Quintanilla/Councilmembers Jessica 2nd Wednesday - 3:30 p.m., NWCR Joslyn Center Board of Directors Liaison Harnik Nestande/Councilmembers Ivan/Chris 4 th Tuesday - 4:00 p.m.

Library Advisory Committee (PD)/Desert Library Zone Com. Trubee Harnik/Councilmembers Gary 4th Monday - 1:00 p.m. ACR Living Desert Board of Trustees Advisory Council (Mayor) Harnik Pradetto/Councilmembers Martin 4 th Friday - 12:00 p.m. - 3 meetings/year - Jan, Apr, Nov Marketing Committee (Palm Desert) Harnik/Quintanilla Councilmembers Thomas Bimonthly-1st Tues. - 3:00 p.m., ACR McCallum Theatre Education Policy Committee Quintanilla Nestande/Councilmembers Jan, March May, 3pm - 4:30pm Outside Agency Fundg. Cmte.(PD) (Mayor & MPT) Harnik/Trubee Councilmembers Veronica As needed Palm Desert Recreational Facils. Corp. Nestande Trubee/Councilmembers Veronica 2 nd Monday in June, C/M Office
Palm Desert Sister Cities Foundation Nestande Trubee/Councilmembers Luis 2nd Tuesday - 3:00 p.m., NWCR Parks & Recreation Committee (Palm Desert) Trubee Nestande/Councilmembers Kevin/Shawn 1 st Tuesday - 8:30 a.m., ACR
Public Safety Committee (Palm Desert) Trubee Quintanilla/Councilmembers Chris 2 nd Tuesday - 3:30 p.m., ACR
Regional Access Project (RAP) Foundation Board Nestande RAP prohibits alternates Veronica 4th Wednesday - 9:00 a.m.

Resource Preservation and Enhancement Committee (PD) Harnik Trubee/Councilmembers Amy/Luis Quarterly or Bi-Monthly, Monday (week varies)– 3:00 p.m., ACR Riverside County Overlay Zone Quintanilla Harnik/Councilmembers As needed Riverside County Transportation Commissn Harnik Pradetto/Councilmembers Martin 2 nd Wednesday - 9:30 a.m.

SCAG (So. Cal. Assn. of Govts.) Gen. Assy. Deleg. Quintanilla Trubee/Councilmembers Martin/Randy/Chris Regional Conf. & Gen. Assy. May SunLine Transit Agency Board Harnik Quintanilla/Councilmembers Martin 4 th Wednesday - 12:00 p.m.

Two x Two Committee (City Council & DSUSD Board) Trubee/Nestande Harnik/Councilmembers Todd/Chris As needed University Planning and Development Committee Quintanilla/Harnik Pradetto/Councilmembers Eric Quarterly Visit Greater Palm Springs Harnik Trubee/Councilmembers Thomas 4th Friday - 8:00 a.m.

Y M C A Board Liaison (Ex-Officio) Trubee Nestande/Councilmembers Martin/Chris 3rd Thursday - Noon Where "Councilmember" is noted as an Alternate option, Primary Attendee(s) may designate another Cncl. Alternate on a case-by-base basis throughout the year when the assigned alternate is not available. 363
364

COUNTY OF RIVERSIDE

RULES AND REGULATIONS OF THE CITY SELECTION COMMITTEE

1. NAME. The City Selection Committee, created within the County of Riverside by the provisions of Section 50270, et. seq., of the Government Code, shall be known as the City Selection Committee of Riverside County.

2. PURPOSE. The purpose of the City Selection Committee shall be to appoint city representatives to boards, commissions, and agencies, as required by law.

3. MEMBERSHIP. The membership of the City Selection Committee shall consist of the mayor of each city within the County of Riverside. When a mayor is unable to attend a meeting of the City Selection Committee, the mayor shall designate another member of the city’s legislative body to attend and vote at the meeting in the mayor’s place and as the mayor’s representative.

4. OFFICERS. A Chair and a Vice-Chair shall be elected from among the membership of the Committee at the first meeting of each year and shall hold office for a term of one (1) year. The ViceChair shall serve in the absence of the Chair and when the office of the Chair is vacant. In the event of a vacancy in either of these offices, the Committee shall elect a successor at the next meeting after the vacancy is created, to serve the unexpired term. If either the Chair or the Vice-Chair cease to be members of the Committee, the office shall be deemed vacant.

5. CLERK. The Clerk of the Board of Supervisors of Riverside County shall serve as clerk, permanent secretary and recording officer of the Committee. All meetings of the Committee shall be conducted in the presence of the Clerk or deputy clerk. In the event that both the Chair and Vice-Chair are vacant, the Clerk of the Board may, with the approval of 50% of the City Selection Committee’s membership call a Special Meeting to elect a Chair, Vice-Chair, and other business as required. All votes and actions taken by the Committee shall be recorded in writing by the Clerk, and such written record shall include the name of each member voting and how the member voted. Written records and minutes of the Committee’s Clerk are public records.
365

6. REGULAR MEETINGS. Regular meetings of the Committee shall be held at the same time and place of the regular meetings of the Riverside County Division of the League of California Cities.

7. SPECIAL MEETINGS. On behalf of the Chair of the Committee, the Clerk of the Committee may call a special meeting of the Committee at any time, and the Chair, or Clerk, shall call a special meeting upon the written request of 50% of the members of the Committee. When required to call a special meeting, such a meeting shall be called and held within sixty (60) days after receipt of such written request.

8. NOTICE OF MEETINGS. At least two (2) weeks prior to the date of any meeting of the Committee, the Clerk shall give notice by mail to each member of the Committee. The Clerk shall also give mailed or other reasonable notice to each member of the Committee of the date, time, and place to which a meeting of the Committee is continued.

9. LOCATION. The location of the City Selection Committee meeting shall be considered a government building for the purpose of performing the Committee's obligations under Government Code 40420(f).

10. QUORUM AND MAJORITY. Representatives of a majority of the number of cities entitled to representation of the Committee shall constitute a quorum of the Committee; provided, however, that a majority vote of the entire membership of the Committee shall be necessary to appoint representatives to boards, commissions, or agencies. Whenever a quorum is not present at any meeting of the Committee, the meeting shall be postponed or adjourned to a subsequent time and place, as determined by the Chair.

11. CONDUCT OF MEETINGS. The Chair shall preside at and conduct the meetings of the Committee. Any member of the Committee may nominate any eligible person for appointment as a city representative to a board, commission, or agency. After the close of the nominations, a vote on the appointment shall be taken. In the event that no nominee receives the majority vote necessary for appointment, a second vote shall be taken between the two (2) nominees receiving the largest number of votes. In the event that no nominee receives the majority vote necessary for appointment on such 366
second vote, the Chair may call for further votes between the remaining two (2) nominees or may continue the matter to a subsequent time and place determined by the Chair.

12. LOCAL AGENCY FORMATION COMMISSION. Appointments to LAFCO pursuant to Government Code Section 56335, shall be by way of an eastern and western representative to the Commission. Any city east of the City of Banning is eligible for selection to the regular membership position which expires May 1994 and every four years thereafter. Any city in the western end of the county, including the City of Banning, is eligible for selection to the regular membership position which expires May 1996, and every four years thereafter. Appointment of the alternate city member shall be “at large”, without consideration of geographical location.

13. OPEN TERM APPOINTMENTS. Any appointment to a position that does not have a statutorily defined term of office shall be made and such appointee shall serve at the pleasure of the Committee and may be removed, without cause by a majority of the Committee.

Revised
20231206
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368

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 13, 2025
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: RATIFICATION OF A LETTER OF SUPPORT FOR THE UNIVERSITY OF

CALIFORNIA, RIVERSIDE, REGIONAL RESILIENCE INNOVATION

INCUBATOR
RECOMMENDATION:

Ratify the letter of support for the University of California, Riverside, (UCR) Regional Resilience Innovation Incubator.

BACKGROUND/ANALYSIS:

At the request of the Executive Director of UC Riverside's Palm Desert Center, the City Council Subcommittee on Governmental Affairs, comprised of Mayor Harnik and Mayor Pro Tem Trubee, approved the issuance of the support letter on January 14, 2025.

Project Summary
The NSF R2I2 Initiative (National Science Foundation Regional Innovation Engines: Resilience Research and Innovation Initiative) is designed to create a hub for innovation and collaboration to address climate resilience challenges in Inland Southern California. This program connects cutting-edge research and technology development to community needs, focusing on critical issues such as air quality, extreme heat, and wildfire impacts. Phase I will establish key partnerships, prioritize high-impact projects, and pilot technologies to enhance regional adaptation and resilience efforts.

Leveraging UC Riverside’s entrepreneurial and research capabilities, R2I2 aims to translate scientific discoveries into practical, community-focused solutions. By engaging with stakeholders across academia, government, and industry, the initiative seeks to accelerate the development and deployment of innovative strategies to bolster the region's climate resilience and sustainability.

Legal Review:

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

FINANCIAL IMPACT:

There is no financial impact associated with this action.

ATTACHMENTS:

1. Letter of Support, dated January 14, 2025

2. Program Outline
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370

C I T Y O F P A L M D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
[email protected]
January 14, 2025
Rosibel Ochoa, PhD
Associate Vice Chancellor
Technology Partnerships
University of California, Riverside
245 University Office Building
Riverside, CA 92521
Re: NSF R2I2: A Hub for Innovation and Community Engagement to Accelerate Climate Resilience and Adaptation in Inland Southern California Dear Dr. Ochoa,
On behalf of the City of Palm Desert, I would like to extend our support to UC Riverside and its proposal to create a Regional Proof of Concept Center in Riverside County, submitted in response to NSF 24- 595: Regional Resilience Innovation Incubator (R2I2).

We strongly believe that UCR’s Office of Technology Partnerships, along with its partners such as UCR Extension and UCR Palm Desert, can significantly contribute to broadening participation in STEM and reducing barriers to inclusion and access to STEM education and careers. Their proposed program aims to identify viable, cost-effective solutions for private sector and community implementation through technology transfer and entrepreneurship. Furthermore, the program will establish a platform connecting climate and earth science research with the needs of the region’s most climate-vulnerable communities, addressing issues such as poor air quality, extreme heat, wildfires, and human health.

This hub will play a critical role in building a robust technology and entrepreneurial ecosystem, creating opportunities for individuals from underserved and underrepresented communities to engage in STEM and bring expertise and innovation to the Inland Empire region.

As a supporter of this initiative, we are prepared to collaborate with UCR to provide lectures, workshops, and outreach to the region’s most climate-vulnerable communities, focusing on clean energy, food security, and regional resilience solutions. It is our hope that this grant will help the Inland Empire become a premier ecosystem for accelerating innovation from regional universities and research centers into successful and sustainable businesses.

We look forward to partnering with UC Riverside to ensure the success of this transformative initiative for the Inland Empire.

Sincerely,
Jan C. Harnik, Mayor
City of Palm Desert
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372
NSF R2I2: A Hub for innovation and community engagement to accelerate climate resilience and adaptation in the Inland Southern California.

Rosibel Ochoa (PI) – Technology Partnerships Dept – University of California, Riverside Hoori Ajami (Co-PI) – Environmental Sciences Dept – University of California, Riverside Shane A. Cybart (Co-PI) - Electrical & Computer Eng Dept – University of California, Riverside Samantha C. Ying (Co-PI) - Environmental Sciences Dept – University of California, Riverside Kevin J. Vaughn (Co-PI) - UNEX Deans Office Dept – University of California, Riverside Synopsis:

Inland Southern California, including Riverside, San Bernardino, and Imperial counties, is a diverse and rapidly growing area facing various socio-economic and environmental challenges. With over 27,000 square miles, the Inland Empire (IE) is one of the fastest-growing regions in California and the US, with nearly 5 million people. African Americans, Latinos, and Native Americans make up over half the population, and in metro areas, over 80% of residents are people of color. Despite being the 13th largest region in the US by population, it ranks 295th in per-capita income, below Waco, Texas. Urgent needs include improving accessibility, supporting individuals with restricted mobility, and protecting outdoor workers and immigrants from poor air quality and drinking water.

Phase I of the program aims to identify viable, cost-effective solutions for private sector and community implementation through technology transfer and entrepreneurship. Over five years, the focus will be on technology derisking and market validation, with the goal of piloting and adopting the technology locally, identifying entrepreneurial leadership team and access to capital. Success will be measured by securing private and community partners to lead deployment and documenting the technology's impact. The program will establish a platform connecting climate and earth science research and discoveries with the needs of the region's most climate-vulnerable communities, addressing issues like poor air quality, extreme heat, wildfires, and human health. Key needs include tools and strategies to enhance access to government resources and early warning systems.

UCR’s R2I2 approach involves collaboration among experts in education, environmental science, engineering, public policy, economics, and health sciences. By partnering with over 20 organizations, including local government, community organizations, economic development departments, industry stakeholders, and representatives from the banking and investment communities, we aim to create a comprehensive innovation research agenda benefiting Inland Southern California.

Rosibel Ochoa, Associate Vice Chancellor for Technology Partnerships, leads UC Riverside’s efforts to translate academic research for societal benefit, with over 20 years of experience in innovation and entrepreneurship. Hoori Ajami specializes in catchment hydrology and spatial analysis. Shane Cybart directs the California Institute for Telecommunications and Information Technology (CalIT2), promoting discovery and economic growth through technology. Sam Ying, Co-Director of the UCGHI Planetary Health Center, studies biogeochemical processes and the impact of human activities on planetary health.

Kevin J. Vaughn has nearly 25 years of experience in higher education leadership. This multidisciplinary team offers diverse perspectives on using education, science, entrepreneurship, technology, and innovation to solve societal problems.

The R2I2 program aligns with UCR's mission to catalyze positive regional change. We are committed to advancing knowledge and developing practical solutions to improve the quality of life for our community members, with the ultimate goal of piloting and adopting technology locally and beyond. 373
374

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 13, 2025
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: RATIFICATION OF A LETTER OF SUPPORT FOR THE TWENTYNINE

PALMS BAND OF MISSION INDIANS GRANT APPLICATION FOR

SURFACE TRANSPORTATION INFRASTRUCTURE IMPROVEMENTS
RECOMMENDATION:

Ratify a letter of support for the Twentynine Palms Band of Mission Indians grant application for surface transportation infrastructure improvements in the Dillon Road corridor and near the Jacqueline Cochran Regional Airport.

BACKGROUND/ANALYSIS:

The Twentynine Palms Band of Mission Indians requested a letter of support for its grant application to the Department of Transportation for surface transportation improvements in the Dillon Road corridor and near the Jacqueline Cochran Regional Airport. At the direction of the City Council Subcommittee on Legislative/Governmental Affairs, consisting of Mayor Harnik and Mayor Pro Tem Trubee, these letters were issued on February 7, 2025.

Dillon Road Corridor Improvements: The Twenty-Nine Palms Band of Mission Indians is pursuing federal funding to widen Dillon Road from two to six lanes between Cabazon Road/Avenue 48 and the SR-86 interchange, enhancing traffic flow and safety for motorists, cyclists, and pedestrians. The project includes dedicated bike lanes, sidewalks, a median for improved traffic management, and drainage improvements to mitigate stormwater runoff.

Jacqueline Cochran Regional Airport Access and Service Roads: This project aims to rehabilitate and improve the access road and associated service roads within tribal lands adjacent to Jacqueline Cochran Regional Airport. The upgrades will enhance connectivity for commercial and logistics operations, supporting the Tribe’s vision of an intermodal transportation hub for commerce, customs processing, and workforce development.

Legal Review:

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

FINANCIAL IMPACT:

There is no financial impact associated with this action.

ATTACHMENTS:

1. Letter of Support

2. Project Description – Dillon Road Corridor

3. Project Description – Jacqueline Cochran Airport
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376

C I T Y O F P A L M D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
[email protected]
February 7, 2025
Darrell Mike, Tribal Chairman
Twenty-Nine Palms Band of Mission Indians
46200 Harrison Place
Coachella, CA 92236
RE: Surface Transportation Improvements - National Infrastructure Investments Dear Chairman Mike,
This letter formally expresses our support for the Twenty-Nine Palms Band of Mission Indians in their efforts to enhance surface transportation infrastructure within the Dillon Road corridor and the Thermal area near the Jacqueline Cochran Regional Airport. These critical improvements will not only strengthen regional connectivity but also stimulate employment opportunities, promote workforce development, improve job quality, and contribute to the creation of sustainable economic growth for local residents and neighboring communities.

Federal investment is essential to advancing these infrastructure projects, as it will reinforce intermodal transportation systems that directly impact the quality of life for residents across our region.

As a committed government entity, we remain dedicated to active engagement in initiatives that significantly affect our citizens. We fully support the success of these projects, which are poised to generate employment opportunities, attract economic development, and foster the growth of viable industries. Additionally, the enhancement of transportation safety—a key outcome of these projects—is of paramount importance to our community.

Thank you for your attention to this matter. We look forward to continued collaboration supporting initiatives that drive progress and prosperity in our region.

Sincerely
Jan C. Harnik, Mayor
City of Palm Desert
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TWENTY-NINE PALMS BAND OF MISSION INDIANS

DILLON CORRIDOR IMPROVEMENTS
DTOS59-25-RA-RAISE
FY 2025 National Infrastructure Investments
CFDA 20.933
1 Project Description
Name
Dillon Road Corridor Improvements
Project Purpose
This project will increase the capacity of the Dillon Road corridor at the Dillon Road/86S interchange with enhancements for pedestrian and bicyclist safety, environmentally sustainable desert landscaping, welcome signage, and cultural monuments.

Detailed Statement of Work
Technical and Engineering Aspects of the Project
This project will widen the Dillon Road corridor from two to six lanes from Cabazon Road/Avenue 48 to the SR-86 Southbound interchange. This project addresses traffic congestion associated with the forecasted increase in travel demand and enhances safety along the Dillon Road corridor. To meet the horizontal alignment of the Dillon Bridge lanes, Dillon Road will be modified. The project’s roadway geometrics north of the Dillon Bridge will be designed to meet the existing six-lane configuration at the SR-86 interchange.

The construction of the Dillon Road corridor project includes an 8-foot-wide shoulder, bike lane, and sidewalk to increase safety for cyclists and pedestrians. A 22-foot-wide median will separate the three lanes in each direction. The project includes modification of drainage features to direct stormwater runoff. Drainage modifications may include large pipes built below the roadway, box culverts, or concrete-lined v-ditches. Best Management Practices (BMPs) will be used to treat water from the pavement flows resulting from road widening before it terminates in the Whitewater River. Two 81-inch-diameter storm drainpipes along Dillon Road will drain to the Whitewater River. To reduce pollutants, the roadway runoff will be discharged into vegetated swales that outlet into the storm drainage system.

Industrial facilities, residential properties, places of worship, and schools surround the Dillon Road corridor. Residential properties are located southwest of Indio Boulevard, approximately 1,600 feet from the project site. The New Seasons Church is located approximately 2,100 feet west of the project site and the Islamic Society of Palm Springs is located approximately 2,900 feet south of the project site. Martin Van Buren Elementary School is located approximately 2,700 feet west of the project site and Cesar Chavez Elementary School is located approximately 4,000 feet south of the project site.

Current Design Status of the Project
The Dillon Road corridor improvement project is in the planning and environmental phase. This is to ensure clarity of efficiencies that may be incorporated into a cost-effective and timely project that mitigates environmental impacts. Project study reports and CEQA have been completed. This project benefits from the involvement of multiple agencies and community representatives ( https://www.coachella.org/departments/engineering/capital-improvementprogram). 379

TWENTY-NINE PALMS BAND OF MISSION INDIANS

DILLON CORRIDOR IMPROVEMENTS
DTOS59-25-RA-RAISE
FY 2025 National Infrastructure Investments
CFDA 20.933
2 Transportation Challenges and How Project Addresses those Challenges Planned land uses in the City of Coachella between the SR-86 and I-10 interchanges are generating a need for expanded surface transportation infrastructure that is safer for motorists, cyclists, pedestrians, and the environment. The Dillon Road corridor within the project area is a two-lane roadway with one lane going in each direction. Dillon Road widens to four-lanes north of the project area. In 2019, the average daily traffic along the Dillon Road Bridge was 7,100 vehicles. In 2050, the ADT is projected to increase to 47,800 vehicles. There is a bottleneck resulting from a two-lane roadway that causes queues and traffic congestion delays along Dillon Road. Future travel demands require infrastructure improvements to safely accommodate cyclists and pedestrians. The Dillon Road corridor, a two-lane roadway, is shared between motor vehicle and bicycle traffic. There are no paved sidewalks for safe pedestrian use within the project area.

The Dillon Road corridor improvement project will reduce traffic congestion, improve traffic operations, accommodate growing travel demand due to developments, and improve safety for motorized vehicles, bicyclists, and pedestrians. The Dillon Road corridor construction project includes an 8-foot-wide shoulder, bike lane, and sidewalk to increase safety for cyclists and pedestrians. A 22-foot-wide median will separate the three lanes in each direction.

Project History
Completed Components
Project study reports and CEQA have been completed.

In 2022, the Twenty-Nine Palms Band of Mission Indians and the City of Coachella signed a Memorandum of Agreement to partner in the Dillon Road corridor improvement project. A news report is located at this link: https://kesq.com/news/2022/10/27/city-of-coachella-twenty-ninepalms-band-of-mission-indians-agree-to-dillon-road-corridor-beautification-project/.

In 2021, a PM Conformity Hot Spot Analysis – Project Summary for Interagency Consultation Form was completed for Transportation Conformity Working Group (TCWG) consideration on June 22, 2021. The purpose of this form was to provide sufficient information to allow the TCWG to determine if the project requires a project-level PM hot spot analysis pursuant to Federal Conformity Regulations. The proposed project is not considered a project of air quality concern (POAQC) because it does not meet the definition of a POAQC as defined in EPA’s Transportation Conformity Guidance. The summary form is located here:
https://scag.ca.gov/sites/main/files/file-attachments/tcwg062221agn.pdf?1623946593.

In 2020, Traffic Operations Report for the Dillon Road Bridge over Coachella Valley Stormwater Channel (FPL and Associates, Inc., 2020) was published. Findings determined that the No-Build alternative would result in queues and traffic congestion delays and the Build alternative will accommodate projected growth and reduce traffic congestion. Improvements will also correct hydraulic deficiencies near the Coachella Valley Stormwater Channel (CVSC). 380

TWENTY-NINE PALMS BAND OF MISSION INDIANS

DILLON CORRIDOR IMPROVEMENTS
DTOS59-25-RA-RAISE
FY 2025 National Infrastructure Investments
CFDA 20.933
3 Context of Other Transportation Infrastructure Investments The Dillon Road corridor improvement project is part of a comprehensive set of surface transportation infrastructure investments. The project includes widening the Dillon Road corridor from two to six lanes from Cabazon Road/Avenue 48 to the SR-86 Southbound interchange and reconstructing the structurally deficient Dillon Road Bridge with twin parallel bridges that span over the Coachella Valley Stormwater Channel (CVSC). This project provides a sound infrastructure to address traffic congestion associated with a forecasted increase in travel demand and enhance safety along the Dillon Road corridor. The total length of the project is 0.68 miles. Several agencies are involved in this comprehensive project, including the Twenty-Nine Palms Band of Mission Indians, Caltrans, the Bureau of Indian Affairs (BIA), and the City of Coachella.

The set of surface transportation investments associated with the Dillon Road corridor and Dillon Bridge reconstruction provides infrastructure for future planned development, minimizes adverse environmental and safety impacts associated with increased travel demand in the area, addresses the existing hydraulic deficiencies at the CVSC, and enhances safety along the Dillon Road corridor.

Geographic Description of the Proposed Project
The Dillon Road corridor leads from I-10 and CA-86. It is the gateway between Coachella and Indio, California. The project is located on tribal lands of the Twenty-Nine Palms Band of Mission Indians in Coachella, California.
381

TWENTY-NINE PALMS BAND OF MISSION INDIANS

DILLON CORRIDOR IMPROVEMENTS
DTOS59-25-RA-RAISE
FY 2025 National Infrastructure Investments
CFDA 20.933
4 The Dillon Road Corridor Improvement Project is in a Historically Disadvantaged Community based on the Climate & Economic Justice Screening Tool (CEJST).

The project is located on tribal lands of the Twenty-Nine Palms Band of Mission Indians. The Reservation lands are located near the city of Twentynine Palms and the city of Coachella, California. Tribal communities are historically disadvantaged according to the CEJST at https://screeningtool.geoplatform.gov/en/#13.14/33.709/-116.17632. This project is on tribal lands in the City of Coachella.

The Dillon Road Corridor Improvement Project is in an Area of Persistent Poverty The Dillon Road corridor improvement project is in an area of persistent poverty in census tract 9404. This information was obtained with the Grant Project Location Verification tool at https://maps.dot.gov/BTS/GrantProjectLocationVerification/. 382

TWENTY-NINE PALMS BAND OF MISSION INDIANS

DILLON CORRIDOR IMPROVEMENTS
DTOS59-25-RA-RAISE
FY 2025 National Infrastructure Investments
CFDA 20.933
5 The Dillon Road Corridor Improvement Project is Not in an Urban Area The Dillon Road corridor improvement project is not located in an urban area with a population greater than 200,000 as designated by the 2020 Census. The project location is in Coachella, California, a city with a population of approximately 42,000.

Project Location
The project is located on tribal lands of the Twenty-Nine Palms Band of Mission Indians.

Reservation lands are in the cities of Twentynine Palms and Coachella, California. The project location is in Coachella, California.

The median household income in the City of Coachella is $52,466, which is less than 60% of California’s median household income of $95,521
(https://www.census.gov/quickfacts/fact/table/coachellacitycalifornia/POP010210). 383
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TWENTY-NINE PALMS BAND OF MISSION INDIANS

IMPROVING SURFACE TRANSPORTATION INFRASTRUCTURE
DTOS59-25-RA-RAISE
FY 2025 National Infrastructure Investments
CFDA 20.933
Project Description
Name: Improving Surface Transportation Infrastructure
Project Purpose
The purpose of the project is to improve and rehabilitate the access road to the Jacqueline Cochran Regional Airport and all associated service roads within the project area that are located on tribal lands. This work will enable the Twenty-Nine Palms Band of Mission Indians to create an intermodal transportation hub for commerce, customs processing, agricultural quarantine, and workforce development at the airport. Activities include improving and rehabilitating the access road and all service roads within the project site.

Detailed Statement of Work
Technical and Engineering Aspects of the Project
The geotechnical investigation, archaeological survey, and hazmat assessments have been completed. The site has access to electricity. Water infrastructure improvements have been completed. The Twenty-Nine Palms Band of Mission Indians is conducting preliminary work with the firm that completed the airport master plan to benefit from existing resources. All 611 acres of the project site are under the jurisdiction of the Tribe.

Current Design Status of the Project
The project is in the preliminary design phase. The development roll plot below identifies the location of the primary access road to the airport. The Tribe is exercising due diligence to ensure that the design provides sufficient detail for construction and procurement. The goal is a feasible, efficient, and cost-effective project that will mitigate environmental impacts. The Tribe’s Development and Airport Operations team is working closely with the Tribal Environmental Protection Agency to protect cultural, historic, and natural resources at the project site. 385

TWENTY-NINE PALMS BAND OF MISSION INDIANS

IMPROVING SURFACE TRANSPORTATION INFRASTRUCTURE
DTOS59-25-RA-RAISE
FY 2025 National Infrastructure Investments
CFDA 20.933
Transportation Challenges and How Project Addresses those Challenges Planned land uses in the local area and region are generating a need for expanded surface transportation infrastructure that incorporates opportunities for commerce and workforce development. Tribal leadership is addressing this challenge by strategically locating the project in Thermal, California, a hub for the logistics industry with 1,965 logistics establishments. The County has the 4th largest number of logistics establishments among California’s 58 counties.

With a 67% increase in transportation and warehousing industries since 2021, Riverside County has the third fastest growing workforce in California and the twelfth largest workforce in the United States.

Project History
Completed Components
The Twenty-Nine Palms Band of Mission Indians acquired 611 acres immediately adjacent to the Jacqueline Cochran Airport in Thermal, California. The acquisition came through the Base Realignment and Closure (BRAC) process and is now under the jurisdiction of the Tribe.

The Tribe is working in partnership with the Riverside County Airport management team to apply to the United States Customs and Border Control agency to become a U.S. Customs and Border Protection General Aviation Facility for the clearance of aircraft arriving from international destinations. The Tribe worked closely with leaders of local Tribal Nations and the County of Riverside to apply for a Foreign Trade Zone designation on Indian Reservations and on County property. When approved, this designation will include support staff from U.S.

Customs and Border Protection Services. The Tribe’s surface transportation infrastructure activities on tribal lands include improving and rehabilitating the access road to the airport and associated service roads to facilitate commerce, trade, and employment opportunities.

The geotechnical investigation, archaeological survey, and hazmat assessments are complete.

The site has access to electricity and the Tribe has established water infrastructure. The Tribe has engaged the authors of the airport master plan to benefit from existing data and resources.

Context of Other Transportation Infrastructure Investments This project is part of a comprehensive set of investments led by the Twenty-Nine Palms Band of Mission Indians. The Tribe is leading improvements of the Dillon Road corridor in Coachella, California that involves widening the roadway from two to six lanes from Cabazon Road/Avenue 48 to the SR-86 Southbound interchange and reconstructing the structurally deficient Dillon Road Bridge with twin parallel bridges that span over the Coachella Valley Stormwater Channel (CVSC). The Dillon Road corridor and Dillon Bridge projects complement improving surface transportation infrastructure near the Jacqueline Cochran Regional Airport by addressing traffic congestion associated with a forecasted increase in travel and industrial demand. Several agencies are involved in these comprehensive transportation projects, including the Twenty-Nine Palms Band of Mission Indians, Federal Transportation Highway Administration, Caltrans, the Bureau of Indian Affairs (BIA), the City of Coachella, and the County of Riverside. 386

TWENTY-NINE PALMS BAND OF MISSION INDIANS

IMPROVING SURFACE TRANSPORTATION INFRASTRUCTURE
DTOS59-25-RA-RAISE
FY 2025 National Infrastructure Investments
CFDA 20.933
Geographic Description of the Proposed Project
The site is directly adjacent to Jacqueline Cochran Regional Airport in Thermal, California. It is five miles from I-10, the busiest East-West corridor in Eastern Riverside County, which provides access to the entire Southwest region. The site is five miles from California State Highway 111.

The site consists of 7 legal parcels totaling approximately 611.69 acres located at the northeast corner of Avenue 60 and Harrison Street, in Thermal, Riverside County, California. The site is in the southwest quarter of Section 20, the west half of Section 28, and the majority of Section 29, Township 6 South, Range 8 East, San Bernardino Baseline and Meridian. The property boundaries are defined by Harrison Street to the west; a dirt road to the north; chain link fencing along much of the northeast and east boundaries (shared with airport); and Avenue 60 to the south.
387

TWENTY-NINE PALMS BAND OF MISSION INDIANS

IMPROVING SURFACE TRANSPORTATION INFRASTRUCTURE
DTOS59-25-RA-RAISE
FY 2025 National Infrastructure Investments
CFDA 20.933
Project Location
The project is located on Highway 86, between 6oth Avenue and Airport Blvd in Thermal, California.

The project is in a Historically Disadvantaged Community based on the Climate & Economic Justice Screening Tool (CEJST)
The location is in Historically Disadvantaged Census Tract 456.09. These are tribal lands of the Twenty-Nine Palms Band of Mission Indians. Tribal communities are historically disadvantaged according to the CEJST at https://screeningtool.geoplatform.gov/en/#13.14/33.709/-116.17632. 388

TWENTY-NINE PALMS BAND OF MISSION INDIANS

IMPROVING SURFACE TRANSPORTATION INFRASTRUCTURE
DTOS59-25-RA-RAISE
FY 2025 National Infrastructure Investments
CFDA 20.933
The Project is in an Area of Persistent Poverty
The project is in an area of persistent poverty in census tract 456.15. This information was obtained with the Grant Project Location Verification tool at https://maps.dot.gov/BTS/GrantProjectLocationVerification/.

The Project is Not in an Urban Area
The project is not located in an urban area with a population greater than 200,000 as designated by the 2020 Census. The project location is in Thermal, California, an unincorporated area with a population of approximately 1,420 (U.S. Census 2023 5-year Estimate, https://censusreporter.org/profiles/16000US0678456-thermal-ca/). 389
390

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 13, 2025
PREPARED BY: Carlos Flores, AICP, Principal Planner
SUBJECT: APPROVAL OF MILLS ACT CONTRACTS BETWEEN THE CITY AND

THE PROPERTY OWNER OF TWO INDIVIDUAL HISTORICAL

PROPERTIES
RECOMMENDATION:

1. Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM DESERT, CALIFORNIA, APPROVING A MILLS ACT AGREEMENT BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 72785 EL PASEO, UNIT 716.”

2. Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM DESERT, CALIFORNIA, APPROVING A MILLS ACT AGREEMENT BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 72765 MESQUITE COURT, SUITE F.”
BACKGROUND/ANALYSIS:

The Mills Act Program enables California cities to enter contracts with owners of historical properties (as designated by the City Council) to provide them with tax relief in exchange for a contract to actively participate in the restoration and maintenance of historical resources. A Mills Act contract is effective for an initial 10-year period and then is automatically extended annually for an additional year, unless, after the initial term, either the City or the owner, by written notice, decides not to renew the contract.

During the effective term of the contract, the property owner must improve, rehabilitate, or maintain the property consistent with the United State Secretary of the Interior’s Standards for Rehabilitation, and provide visibility of the historical resource from the public right-of-way and/or other accessible areas. The Environmental Resources Element (ERE) of the General Plan describes the City’s goals and policies for the protection of cultural resources. Goals 6.9.4 and

6.9.5 state that the City will require sites with significant cultural resources and structures to be preserved. A property must be designated as a local Historic Landmark or be a contributing property to a Historic District to be enrolled in the program.

Currently, there are 47 properties participating in the program, with the last requests approved by the City Council in December 2024.

The current proposed applicants utilized the updated Mills Act guidelines approved by City Council in 2024, including an updated contract and eligible scope of work checklist. The items presented include two (2) separate requests for Mills Act contracts, summarized in Table 1 below:

Table 1 – Proposed Mills Act contract properties
391
City of Palm Desert
Mills Act Approvals

Case Number Address Landmark/District Name Council
Designation
MILLS24-0001 72785 El Paseo, Unit 716 Sandpiper Circles 5-10 3/23/2017 MILLS24-0003 73765 Mesquite Court, Suite F Kings Point 12/12/2019 Legal Review:

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

Environment Review:

Entering into a “Mills Act Contract” with the owners of historical property is not subject to the provisions of the California Environmental Quality Act (CEQA) because it is not a project as defined in CEQA Guidelines § 15378 (Definitions – Project). Implementation of the Mills Act is a government fiscal activity which does not involve commitment to any specific project resulting in a potentially significant physical impact on the environment (CEQA Guidelines § 15378 (b) (4)).

FINANCIAL IMPACT:

After the Mills Act Contracts are recorded, the County Assessor values the property by an income capitalization method, following guidelines provided by the State Board of Equalization.

Because of the timing and the method of valuing the restricted property, it is difficult to accurately estimate the tax savings and resulting fiscal impacts to the City under a particular historical property contract. However, the Office of Historic Preservation (California Department of Parks and Recreation) estimates that property owners participating in the program may realize property tax savings of between 40% and 60% each year for newly improved or purchased older properties. The City’s property tax revenue will be reduced accordingly.

ATTACHMENTS:

1. Draft Resolution and Mills Act Contract for 72785 El Paseo, Unit 716 (MILLS24-0001)

2. Draft Resolution and Mills Act Contract for 72765 Mesquite Court, Suite F (MILLS24-0003) 392
RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,

CALIFORNIA, APPROVING A MILLS ACT AGREEMENT BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 72785 EL
PASEO, UNIT 716
CASE NOS. MILLS24-0001
WHEREAS, the City Council of the City of Palm Desert is authorized by California Government Code § 50280 et seq. (known as “the Mills Act”) to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance, and rehabilitation such that these historic properties retain their historic characteristics; and WHEREAS, the City Council of the City of Palm Desert has adopted Resolution No. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an ongoing historic preservation program to promote the preservation, maintenance, and rehabilitation of historic resources through financial incentives; and WHEREAS, the City Council of the Palm Desert has designated this property as a historic resource of the City of Palm Desert pursuant to the policies in the Title 29 of the Palm Desert Municipal Code; and
WHEREAS, Mark Johnston is the owner of that certain qualified real property, together with associated structures and improvement thereon, located on Assessor’s Parcel Number 640-220-016, located at 72785 El Paseo, Unit 716, in the City of Palm Desert, California; and WHEREAS, the City and the Owners, for their mutual benefit, now desire to enter into an agreement to limit the use of the property to prevent inappropriate alterations and to ensure that character-defining features are preserved and maintained in an exemplary manner, and repairs and improvements are completed as necessary to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article 1.9, Sec. 439 et. seq. of the Revenue and Taxation Code; and
WHEREAS, the City Council conducted a meeting in the Council Chamber of City Hall, 73510 Fred Waring Drive, Palm Desert, California, on February 13, 2025, for the purpose of considering approval of the historic property preservation agreement, and has duly considered all evidence and testimony of the applicant and interested parties, and the evaluation and recommendation by staff, present at said hearing; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:
a) Environmental Resources Element Program 6.9.4 and 6.9.5 states that the City will require sites with significant cultural resources and structures to be preserved.
393
b) The subject property, located at 72785 El Paseo, Unit 716, has been recognized as a historic asset in the community by its designation as a Contributing Asset to a Historic District by the City Council by Resolution No. 2017-30 on March 23, 2017 As such, maintaining the structure will meet the City’s goals for historic preservation listed in policies 6.9.4 and 6.9.5 of the Environmental Resources Element.

SECTION 2. Environmental Determination. The City Council has determined that the above actions do not constitute a project, as defined in California Environmental Quality Act Guidelines § 15378 and are not subject to environmental review.

SECTION 3. Historic Property Preservation Agreement Approved. The City Council hereby approves the Mills Act Agreement between the City of Palm Desert and the Owner of the Historic Property Located at 72785 El Paseo, Unit 716, to be entered into by the City and the property owners, Michael J Cleeve and Linda I Cleeve.

SECTION 4. City Manager Authorized to Sign Agreement for City. The City Council hereby authorizes the Community Development Director to execute said agreement on behalf of the Council of the City of Palm Desert.

SECTION 5. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City’s office at 73510 Fred Waring Drive, Palm Desert, CA 92260. Anthony J. Mejia, MMC, the City Clerk of the City of Palm Desert is the custodian of the record of proceedings.

SECTION 6. Effective Date. This Resolution shall become effective immediately upon its adoption.

ADOPTED ON _______________.

JAN HARNIK
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
394

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM DESERT )
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, DO HEREBY CERTIFY that the foregoing Resolution No. 25-__ was duly adopted by the City Council of the City of Palm Desert at a regular meeting held on the ___ day of February, 2025 by the following vote of the Council:

AYES:

NOES:

ABSENT:
(SEAL)
_________________________
ANTHONY J. MEJIA

CITY CLERK
395
396
Recording Requested by:

When Recorded Mail to:

CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attention: Cultural Resources
Administrator
(Space above for Recorder’s Office)

HISTORIC PROPERTY PRESERVATION AGREEMENT
(“MILLS ACT CONTRACT”)
between

THE CITY OF PALM DESERT
a California municipal corporation
and

MARK JOHNSTON
Owner of the property located at
72785 El Paseo, Unit 716
APN 640-220-016
397

HISTORIC PROPERTY PRESERVATION AGREEMENT
(“MILLS ACT CONTRACT”)
This agreement (“Agreement”) is made this day of 20 , by and between the City of Palm Desert, a California municipal corporation (“City”), and Mark Johnston (“Owner”).

RECITALS

1. California Government Code section 50280, et. seq. allows cities the discretion to enter into contracts with the owners of qualified historic properties, as defined in Government Code section 50280.1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property, so as to retain its characteristics as property of historic significance; and

2. Owner holds fee title to that certain real property, together with associated structures and improvements thereon, generally located at 72785 El Paseo, Unit 716 within the City of Palm Desert, California (“Historic Property”). A legal description of the Historic Property is attached hereto as Exhibit “A,” and incorporated herein by this reference; and

3. On March 23, 2017, the City Council adopted Resolution No. 2017-30 designating the Historic Property as a historic resource, pursuant to the terms and provisions of Title 29 of the Palm Desert Municipal Code; and

4. On February 13, 2025, the City Council adopted Resolution No. - approving a Mills Act Agreement between the City and Owner; and

5. City and Owner desire to enter into this Agreement for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character; and

6. Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of Chapter 3, Part 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom. 398
TERMS
NOW, THEREFORE, the City and Owner, in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows:

1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on , 20 (“Effective Date”), and shall
remain in effect for a term of ten (10) years thereafter.

2. Yearly Renewal. Each year upon the anniversary of the Effective Date (“Renewal Date”), an additional one (1) year shall automatically be added to the remaining term of the Agreement, unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreement.

3. Nonrenewal. If either the Owner or City desires at any point not to renew this Agreement, Owner or City shall serve a written notice of nonrenewal upon the party in advance of the Renewal Date (“Notice of Nonrenewal”). The Notice of Nonrenewal shall be effective, only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective, only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the remaining Agreement term.

4. Owner Protest of City Nonrenewal. Within fifteen (15) days of Owner’s receipt of the Notice of Nonrenewal from the City, Owner may file with the City a written protest of the Notice of Nonrenewal. Upon receipt of the written protest, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreement. Owner may furnish to the City Council any information that Owner deems relevant and shall furnish that which is requested or required by the City Council. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal.

5. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions:

A. Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Attached hereto as Exhibit “B” 399
and incorporated herein by this reference, is a list of the minimum standards and conditions for the maintenance, use, protection, and preservation of the Historic Property, which shall be complied with by Owner at all times throughout the term of this Agreement. In addition, Owner shall comply with the terms of the City’s Cultural Resources Ordinance 1168 (Title 29 of the Palm Desert Municipal Code) and shall obtain any and all applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property, so as to maintain its historical and cultural significance.

B. Owner shall, where necessary, repair, maintain, restore, and rehabilitate the Historic Property according to the rules and regulations of both the Office of Historic Preservation of the State Department of Parks and Recreation, and the City of Palm Desert. The condition of the Historic Property’s exterior on the Effective Date of this Agreement is documented in the photographs attached hereto as Exhibit “C” and incorporated herein by this reference. At a minimum, Owner shall continually maintain the exterior of the Historic Property in the same condition as documented and depicted in Exhibit “C.” C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in Exhibit “D,” attached hereto and incorporated herein by this reference. All such projects shall be undertaken and completed in accordance with both the Secretary of Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings, in addition to the City of Palm Desert’s design guidelines.

D. Owner shall not be permitted to block the view corridor with any new structure such as walls, fences or shrubbery, so as to prevent the view of the Historic Property from the public right-of-way.

6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or the City, as may be necessary to determine Owner’s compliance with the terms and provisions of this Agreement.

7. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City, which the City deems necessary or advisable to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement.
400

8. Breach of Agreement; Remedies.

A. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail, detailing Owner’s violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City’s declaration of Owner’s breach of this Agreement, City may pursue any and all remedies available pursuant to local, state, or federal law, including those specifically provided for in this section.

B. Remedy - Termination. City may terminate this Agreement, if the City determines, following a duly noticed public hearing in accordance with Government Code section 50286, that: 1.) Owner breached any of the conditions of this Agreement; 2.) Owner allowed the Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property or; 3.) Owner failed to maintain and preserve the Historic Property in accordance with the terms of this Agreement. If this Agreement is terminated pursuant to this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Riverside, as required by Government Code section 50286.

C. Alternative Remedies. As an alternative to termination of this Agreement for Owner’s breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership.

9. Destruction of Property; Eminent Domain; Termination. If the Historic Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the City Building Official more than sixty percent (60%) of the original fabric of the structure must be replaced, this Agreement shall be terminated, because the historic value of the structure will have been deemed destroyed. If the Historic Property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the City Council to frustrate the purpose of this Agreement, this Agreement shall be terminated. No cancellation fee 401
pursuant to Government Code section 50286 shall be imposed if the Agreement is terminated, pursuant to this Section.

10. Waiver. City does not waive any claim of default by Owner, if City does not enforce or terminate this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City’s regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder.

11. Binding Effect of Agreement. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument herein after executed, covering or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions set forth in this Agreement, deed, or other instrument.

12. Covenants Run with the Land. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that it restricts development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner.

13. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto:

City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Cultural Resources Administrator
402
Owner: Mark Johnston

14. Effect of Agreement. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto or any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise.

15. Indemnity of City. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands, causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, arising out of or incident to (i) the direct or indirect use operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner’s activities in connection with the Historic Property; and (iii) any restrictions on the use or development of the Historic Property, from application or enforcement of Title 29 of the City’s Municipal Code, or from the enforcement of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City, its elected officials, employees, and/or agents for all legal expenses and costs incurred by each of them. Owner’s obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, employees, or agents.

16. Binding Upon Successors. All of the agreements, rights, covenants, reservations and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever.

17. Legal Costs. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, conditions or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorneys’ fees to be fixed by the court, in addition to court costs and other relief ordered by the court. 403

18. Severability. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby.

19. Recordation. No later than twenty (20) days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Riverside. Owner shall provide written notice of the contract to the State Office of Historic Preservation within six (6) months of entering into the contract.

20. Amendments. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto.

21. Governing Law and Venue. This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county.
404
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written.

Dated: CITY OF PALM DESERT
By
, CITY MANAGER
ATTESTED TO:

By
, CITY CLERK
Dated: ____________________ OWNER

, OWNER

, OWNER

APPROVED AS TO FORM

, CITY ATTORNEY
405
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
)ss

COUNTY OF RIVERSIDE )
On , before me, ,
the undersigned, a notary public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

Notary Signature
406

EXHIBIT A

PROPERTY DESCRIPTION
Real property in the City of Palm Desert, County of Riverside, State of california, described as follows:

PARCEL 1:

LOT 16 OF TRACT NO. 2518, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 46 PAGES 21 AND 22 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

PARCEL 2:

AN UNDIVIDED 1/16TH INTEREST IN AND TO LOT 33 OF TRACT NO. 2518 AS FOR RECREATION PURPOSES AND THE FACILITIES THEREFORE.

PARCEL 3:

AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER A 20 FOOT ACCESS EASEMENT OVER LOTS 33 AND 34 OF SAID TRACT 2518, AS SHOWN ON THE

RECORDED MAP OF SAID TRACT, SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL 1.

Apn: 640-220-016
407

EXHIBIT B

MINIMUM STANDARDS AND CONDITIONS FOR

MAINTENANCE, USE, PROTECTION, AND PRESERVATION

OF HISTORIC PROPERTY

1. The Historic District Property shall comply with all regulations of Title 8 and Title 9 of the Palm Desert Municipal Code, including the definition of “Good Repair” as outlined in Section

29.20 and 29.60.160.

2. The Historic Property shall continue to be maintained in a manner consistent with the level of maintenance that has customarily been employed at the property and consistent with the typical condominium development in the Palm Desert Area.

3. The Historic Property shall not have non-operational vehicles or portions of them in public view.

4. The Historic Property Shall not have stagnant or standing water.

5. The Historic Property Shall not have overgrown or decaying landscaping. All landscape features should be maintained including, but not limited to, grass, trees, and any plantings.

6. The Historic Property shall prominently display and properly maintain its City Landmark plaque.
408

EXHIBIT C

EXTERIOR PHOTOGRAPHS OF HISTORIC PROPERTY
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448
449
450
451
452
453

EXHIBIT D

PENDING AND REQUIRED PROJECTS FOR HISTORIC PROPERTY
454
RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,

CALIFORNIA, APPROVING A MILLS ACT AGREEMENT BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 72765
MESQUITE COURT, SUITE #F
CASE NOS. MILLS24-0003
WHEREAS, the City Council of the City of Palm Desert is authorized by California Government Code § 50280 et seq. (known as “the Mills Act”) to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance, and rehabilitation such that these historic properties retain their historic characteristics; and WHEREAS, the City Council of the City of Palm Desert has adopted Resolution No. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an ongoing historic preservation program to promote the preservation, maintenance, and rehabilitation of historic resources through financial incentives; and WHEREAS, the City Council of the Palm Desert has designated this property as a historic resource of the City of Palm Desert pursuant to the policies in the Title 29 of the Palm Desert Municipal Code; and
WHEREAS, Rosella Gallegos, Sheila Rice, and Tai Sanchez and Heidi Sue Hardman are the owners of that certain qualified real property, together with associated structures and improvement thereon, located on Assessor’s Parcel Number 628-270-036-6, located at 72765 Mesquite Court, Suite F, in the City of Palm Desert, California; and WHEREAS, the City and the Owners, for their mutual benefit, now desire to enter into an agreement to limit the use of the property to prevent inappropriate alterations and to ensure that character-defining features are preserved and maintained in an exemplary manner, and repairs and improvements are completed as necessary to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article 1.9, Sec. 439 et. seq. of the Revenue and Taxation Code; and
WHEREAS, the City Council conducted a meeting in the Council Chamber of City Hall, 73510 Fred Waring Drive, Palm Desert, California, on February 13, 2025, for the purpose of considering approval of the historic property preservation agreement, and has duly considered all evidence and testimony of the applicant and interested parties, and the evaluation and recommendation by staff, present at said hearing; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:
a) Environmental Resources Element Program 6.9.4 and 6.9.5 states that the City will require sites with significant cultural resources and structures to be preserved.
455
b) The subject property, located at 72765 Mesquite Court, Suite F, has been recognized as a historic asset in the community by its designation as a Contributing Asset to a Historic District by the City Council by Resolution No. 2019-89 on December 12, 2019. As such, maintaining the structure will meet the City’s goals for historic preservation listed in policies 6.9.4 and 6.9.5 of the Environmental Resources Element.

SECTION 2. Environmental Determination. The City Council has determined that the above actions do not constitute a project, as defined in California Environmental Quality Act Guidelines § 15378 and are not subject to environmental review.

SECTION 3. Historic Property Preservation Agreement Approved. The City Council hereby approves the Mills Act Agreement between the City of Palm Desert and the Owners of the Historic Property Located at 72765 Mesquite Court, Suite F, to be entered into by the City and the property owners, Michael J Cleeve and Linda I Cleeve.

SECTION 4. City Manager Authorized to Sign Agreement for City. The City Council hereby authorizes the Community Development Director to execute said agreement on behalf of the Council of the City of Palm Desert.

SECTION 5. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City’s office at 73510 Fred Waring Drive, Palm Desert, CA 92260. Anthony J. Mejia, MMC, the City Clerk of the City of Palm Desert is the custodian of the record of proceedings.

SECTION 6. Effective Date. This Resolution shall become effective immediately upon its adoption.

ADOPTED ON _______________.

JAN HARNIK
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
456

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM DESERT )
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, DO HEREBY CERTIFY that the foregoing Resolution No. 25-__ was duly adopted by the City Council of the City of Palm Desert at a regular meeting held on the ___ day of February, 2025 by the following vote of the Council:

AYES:

NOES:

ABSENT:
(SEAL)
_________________________
ANTHONY J. MEJIA

CITY CLERK
457
458
Recording Requested by:

When Recorded Mail to:

CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attention: Cultural Resources
Administrator
(Space above for Recorder’s Office)

HISTORIC PROPERTY PRESERVATION AGREEMENT
(“MILLS ACT CONTRACT”)
between

THE CITY OF PALM DESERT
a California municipal corporation
and
Rosella Gallegos, Sheila Rice
Tai Sanchez and Heidi Sue Hardman
Owner of the property located at
72765 Mesquite Court, Suite F
APN 628-270-036-6
459

HISTORIC PROPERTY PRESERVATION AGREEMENT
(“MILLS ACT CONTRACT”)
This agreement (“Agreement”) is made this day of 20 , by and between the City of Palm Desert, a California municipal corporation (“City”), and Rosella Gallegos, Sheila Rice, Tai Sanchez, and Heidi Sue Hardman (“Owners”).

RECITALS

1. California Government Code section 50280, et. seq. allows cities the discretion to enter into contracts with the owners of qualified historic properties, as defined in Government Code section 50280.1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property, so as to retain its characteristics as property of historic significance; and

2. Owner holds fee title to that certain real property, together with associated structures and improvements thereon, generally located at 72785 El Paseo, Unit 716 within the City of Palm Desert, California (“Historic Property”). A legal description of the Historic Property is attached hereto as Exhibit “A,” and incorporated herein by this reference; and

3. On March 23, 2017, the City Council adopted Resolution No. 2017-30 designating the Historic Property as a historic resource, pursuant to the terms and provisions of Title 29 of the Palm Desert Municipal Code; and

4. On February 13, 2025, the City Council adopted Resolution No. - approving a Mills Act Agreement between the City and Owners; and

5. City and Owner desire to enter into this Agreement for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character; and

6. Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of Chapter 3, Part 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom. 460
TERMS
NOW, THEREFORE, the City and Owner, in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows:

1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on , 20 (“Effective Date”), and shall
remain in effect for a term of ten (10) years thereafter.

2. Yearly Renewal. Each year upon the anniversary of the Effective Date (“Renewal Date”), an additional one (1) year shall automatically be added to the remaining term of the Agreement, unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreement.

3. Nonrenewal. If either the Owner or City desires at any point not to renew this Agreement, Owner or City shall serve a written notice of nonrenewal upon the party in advance of the Renewal Date (“Notice of Nonrenewal”). The Notice of Nonrenewal shall be effective, only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective, only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the remaining Agreement term.

4. Owner Protest of City Nonrenewal. Within fifteen (15) days of Owner’s receipt of the Notice of Nonrenewal from the City, Owner may file with the City a written protest of the Notice of Nonrenewal. Upon receipt of the written protest, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreement. Owner may furnish to the City Council any information that Owner deems relevant and shall furnish that which is requested or required by the City Council. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal.

5. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions:

A. Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Attached hereto as Exhibit “B” 461
and incorporated herein by this reference, is a list of the minimum standards and conditions for the maintenance, use, protection, and preservation of the Historic Property, which shall be complied with by Owner at all times throughout the term of this Agreement. In addition, Owner shall comply with the terms of the City’s Cultural Resources Ordinance 1168 (Title 29 of the Palm Desert Municipal Code) and shall obtain any and all applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property, so as to maintain its historical and cultural significance.

B. Owner shall, where necessary, repair, maintain, restore, and rehabilitate the Historic Property according to the rules and regulations of both the Office of Historic Preservation of the State Department of Parks and Recreation, and the City of Palm Desert. The condition of the Historic Property’s exterior on the Effective Date of this Agreement is documented in the photographs attached hereto as Exhibit “C” and incorporated herein by this reference. At a minimum, Owner shall continually maintain the exterior of the Historic Property in the same condition as documented and depicted in Exhibit “C.” C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in Exhibit “D,” attached hereto and incorporated herein by this reference. All such projects shall be undertaken and completed in accordance with both the Secretary of Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings, in addition to the City of Palm Desert’s design guidelines.

D. Owner shall not be permitted to block the view corridor with any new structure such as walls, fences or shrubbery, so as to prevent the view of the Historic Property from the public right-of-way.

6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or the City, as may be necessary to determine Owner’s compliance with the terms and provisions of this Agreement.

7. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City, which the City deems necessary or advisable to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement.
462

8. Breach of Agreement; Remedies.

A. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail, detailing Owner’s violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City’s declaration of Owner’s breach of this Agreement, City may pursue any and all remedies available pursuant to local, state, or federal law, including those specifically provided for in this section.

B. Remedy - Termination. City may terminate this Agreement, if the City determines, following a duly noticed public hearing in accordance with Government Code section 50286, that: 1.) Owner breached any of the conditions of this Agreement; 2.) Owner allowed the Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property or; 3.) Owner failed to maintain and preserve the Historic Property in accordance with the terms of this Agreement. If this Agreement is terminated pursuant to this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Riverside, as required by Government Code section 50286.

C. Alternative Remedies. As an alternative to termination of this Agreement for Owner’s breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership.

9. Destruction of Property; Eminent Domain; Termination. If the Historic Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the City Building Official more than sixty percent (60%) of the original fabric of the structure must be replaced, this Agreement shall be terminated, because the historic value of the structure will have been deemed destroyed. If the Historic Property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the City Council to frustrate the purpose of this Agreement, this Agreement shall be terminated. No cancellation fee 463
pursuant to Government Code section 50286 shall be imposed if the Agreement is terminated, pursuant to this Section.

10. Waiver. City does not waive any claim of default by Owner, if City does not enforce or terminate this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City’s regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder.

11. Binding Effect of Agreement. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument herein after executed, covering or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions set forth in this Agreement, deed, or other instrument.

12. Covenants Run with the Land. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that it restricts development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner.

13. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto:

City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Cultural Resources Administrator
464
Owners: Rosella Gallegos
Sheila Rice
Tai Sanchez
Heidi Sue Hardman

14. Effect of Agreement. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto or any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise.

15. Indemnity of City. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands, causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, arising out of or incident to (i) the direct or indirect use operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner’s activities in connection with the Historic Property; and (iii) any restrictions on the use or development of the Historic Property, from application or enforcement of Title 29 of the City’s Municipal Code, or from the enforcement of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City, its elected officials, employees, and/or agents for all legal expenses and costs incurred by each of them. Owner’s obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, employees, or agents.

16. Binding Upon Successors. All of the agreements, rights, covenants, reservations and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever.

17. Legal Costs. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, conditions or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorneys’ fees to be fixed by the court, in addition to court costs and other relief ordered by the court. 465

18. Severability. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby.

19. Recordation. No later than twenty (20) days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Riverside. Owner shall provide written notice of the contract to the State Office of Historic Preservation within six (6) months of entering into the contract.

20. Amendments. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto.

21. Governing Law and Venue. This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county.
466
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written.

Dated: CITY OF PALM DESERT
By
, CITY MANAGER
ATTESTED TO:

By
, CITY CLERK
Dated: ____________________ OWNER

, OWNER

, OWNER

APPROVED AS TO FORM

, CITY ATTORNEY
467
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
)ss

COUNTY OF RIVERSIDE )
On , before me, ,
the undersigned, a notary public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

Notary Signature
468

EXHIBIT A

PROPERTY DESCRIPTION
Parcel 1:

An undivided 1/36 interest in and to Lot 1 of Tract No. 4380-1, in the City of Palm Desert, County of Riverside, State of California, as per Map recorded in Book 81, Pages 10 and 11 Maps, Records of Riverside County, California;
Excepting therefrom Units 1 to 36, inclusive, as shown upon the Condominium Plan recorded August 22, 1974 as Instrument No. 108559 of Official Records of Riverside County, California.

Parcel 2:

Unit 36 consisting of Elements 36, 36GC and 36G, as shown upon the Condominium Plan referred to in Parcel 1 above.
469

EXHIBIT B

MINIMUM STANDARDS AND CONDITIONS FOR

MAINTENANCE, USE, PROTECTION, AND PRESERVATION

OF HISTORIC PROPERTY

1. The Historic District Property shall comply with all regulations of Title 8 and Title 9 of the Palm Desert Municipal Code, including the definition of “Good Repair” as outlined in Section

29.20 and 29.60.160.

2. The Historic Property shall continue to be maintained in a manner consistent with the level of maintenance that has customarily been employed at the property and consistent with the typical condominium development in the Palm Desert Area.

3. The Historic Property shall not have non-operational vehicles or portions of them in public view.

4. The Historic Property Shall not have stagnant or standing water.

5. The Historic Property Shall not have overgrown or decaying landscaping. All landscape features should be maintained including, but not limited to, grass, trees, and any plantings.

6. The Historic Property shall prominently display and properly maintain its City Landmark plaque.
470

EXHIBIT C

EXTERIOR PHOTOGRAPHS OF HISTORIC PROPERTY
471
72765 MWSQUITE COURT #F
472
Above—Front elevation Below Left —Bedroom patio Below Below middle— Living room patio Below right—Left elevation Above—Right elevation facing Mequite Ct 72765
Mesquite Court #F
Palm Desert CA
473
Above: Hallway bathroom Second bedroom Living Room Dinette Below: Interior entry Ensuite bathroom Main bedroom Garage Interior 474
475
476

EXHIBIT D

PENDING AND REQUIRED PROJECTS FOR HISTORIC PROPERTY
Year Proposed Project Estimated Cost
1 HOA Tile roof replacement
Homeowners Replace Clerestory Windows with exact
replacements
$2,062
$5,000
2 HOA Replace lights in entry area with vintage lighting fixtures and enhance landscaping in common areas on Mesquite Drive HOA Replaster and tile Mesquite pool
$ 444
$ 450
3 HOA Replace lights along driveways in public view with vintage lighting fixtures and enhance landscaping in entry area Homeowners Replace flooring in unit
$ 277
$ 5,000
4 HOA Replace failing sewer lines as determined by camera scans of clay pipes
Homeowners Replace kitchen cabinets
$ 722
$3,000
5 HOA Replace failing sewer lines as determined by camera scans of clay pipes
HOA Landscape/irrigation improvements in areas where
irrigation is failing and landscaping has out-lived useful life $ 750
$ 300
6 HOA Replace failing sewer lines as determined by camera scans of clay pipes
HOA Exterior painting in vintage colors
$ 750
$ 560
7 HOA Replace failing sewer lines as determined by camera scans of clay pipes
Homeowners – Paint interior of unit
$ 780
$10,000
8 HOA Replace mailboxes serving Mesquite Court
HOA Replace failing sewer lines as determined by camera scans of clay pipes
$ 550
$ 800
9 HOA Seal coat Mesquite Pool deck
HOA Replace failing sewer lines as determined by camera scans of clay pipes
$ 400
$ 850
10 HOA Asphalt repairs in driveway
HOA Replace failing sewer lines as determined by camera scans of clay pipes
$ 111
$ 833
477
478

PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: February 13, 2025
PREPARED BY: Celina Cabrera, Senior Management Analyst
Veronica Chavez, Director of Finance
SUBJECT: RECEIVE AND FILE THE ANNUAL LOW- AND MODERATE-INCOME HOUSING ASSET FUND REPORT RELATIVE TO SENATE BILL 341
RECOMMENDATION:

Receive and file the annual Low- and Moderate-Income Housing Asset Fund report relative to Senate Bill 341 for Fiscal Year (FY) 2023-24.

BACKGROUND/ANALYSIS:

The Housing Successor SB 341 Annual Report (Report) regarding the Low- and ModerateIncome Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1. The purpose of this Report is to provide the governing body of the Housing Successor (the Housing Authority) with an annual report on the housing assets and activities of the Housing Successor under Dissolution Law.

This report includes information on the deposits to, ending balance of, and expenditures from the LMIHAF. A description of the Housing Successor’s assets and any transfers of assets to other housing successor agencies are also addressed. The report discusses the Housing Successor’s current projects, acquisitions of any real property since February 1, 2012, or any outstanding obligations. Finally, as required by law, three separate tests are included – the income test, senior housing test, and excess surplus test.

Income Test
Section 10 of the Report provides the required breakdown of expenditures within the LMIHAF by income category to determine whether the statutory thresholds have been met.

Category % Required Actual %
Extremely Low Income (0-30% AMI) 30% Minimum 57%
Low Income (60-80% AMI) 20% Maximum 11%
Senior Housing Test
This section provides the percentage of units of deed-restricted rental housing restricted to seniors and assisted within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing. For this Report, the ten-year period reviewed is 2014 to 2024.

During this period, the Authority provided four developers with over $23 Million in funding in exchange for 534 deed-restricted multi-family units. However, the units will not be counted until certificates of occupancy are issued.
479
City of Palm Desert
(Receive and File FY 2023-24 SB 341 Report)

Unit Category # of Units
Assisted Senior Rental Units 72
Total Assisted Rental Units 0
Senior Housing Test (%) 100%
Excess Surplus Test
Activity for FY 2023-24 has resulted in an excess surplus of $18,338,328 (as noted in Section 12c of the Report). A plan to eliminate the excess surplus is required where a surplus is identified (as noted in Section 12d of the Report). The projects listed below are in varying planning stages and will exhaust funds identified in the surplus over the next few years:

Development Amount Expected Timeline
Sagecrest Apartments II $7,000,000 2
nd Qtr, 2025
Portola Palms MHP (2 lots) $1,000,000 3
rd Qtr, 2025
Self Help Loans $800,000 FY 2025-26
University Park #1 – 120 Acres $6,000,000 FY 2025-26
University Park #2 – 120 Acres $6,000,000 FY 2025-26
PDHA Rental Property CIP $4,000,000 FY 2025-2027
TOTAL POTENTIAL PROJECTS $24,800,000
The potential projects identified in the report exceed the available surplus because they are planned but not yet committed. If a project is completed at a lower cost or is removed from the list, other projects are available to utilize the surplus funds.

The Report was distributed to the City Clerk’s Office and posted on the City’s webpage on December 30, 2024.

Legal Review:

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

FINANCIAL IMPACT:

There is no impact to the General Fund with this action.

ATTACHMENTS:

1. SB341 Report for FY 2023-24
480
FY 2023/24
1) SERAF Deposits During FY 2023/24 N/A
2) Deposits into LMIHAF During FY 2023/24
Interest $1,956,112
Rents $0
ROPs Related Deposits $0
Loan Payoffs / Residual Receipts Payments $34,352
Sales Proceeds $0
Charges for Services $198,926
Investment Earnings $0
Miscellaneous $0
Total Deposits into LMIHAF $2,189,390
(Less) Amount Pursuant to ROPs $0
Total Effective Deposits into LMIHAF During FY 2023/24 $2,189,390 3) LMIHAF Fund Balance and Available Cash Calculation as of June 30, 2024 LMIHAF Balance as of June 30, 2024 $52,272,684
(Less) Amounts Deposited for ROPs $0
(Less) Land Held for Resale ($61,516)
(Less) Interest Receivables ($311,935)
(Less) Notes Receivables ($18,413,813)
(Less) Accounts Payable ($19,035)
(Less) Prepaid Costs ($660)
Available Cash as of June 30, 2024 $33,465,725
4) Expenditures by Category During FY 2023/24
a) Administrative / Monitor/Preserve Affordability Covenants Expenditures (See #5) $262,558 b) Homeless Prevention & Repaid Rehousing Services Expenditures ($250,000/year maximum) $0 c) Regional Homeless Shelters ($1,000,000/year maximum) $0 d) Development of Affordable Housing 1
0% AMI - 30% AMI $4,840,683
31% AMI - 59% AMI $2,394,317
60% AMI - 80% AMI $0
Total Expenditures on Affordable Housing Development $7,235,000 1 LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
Crossings at Palm Desert $7,235,000 loan disbursed on 11/13/23 (93 ELI units, 46 VLI/Low units).

Date Printed: 1/21/2025 Page 1 of 13
481
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
5) Maximum Allowable Administrative Expenditures
a) Total Assets (Land + Loans)
Statutory Value of Real Property $71,359,909
Notes Receivables $18,413,813
Total Assets (Land + Loans) $89,773,722
b) Maximum % of Total Assets Allowable for Administrative Expenditures 5% Maximum Administrative Expenditures $4,488,686
Minimum Maximum Administrative Costs 1
$263,000
c) Maximum Allowable Administrative Expenditures $4,488,686 d) Administrative Expenditures in FY 2023/24 $262,558
1 6) Transfers Made to Other Housing Successors N/A
7) Property Tax Revenue Held for ROPs Related Projects 1$9,157,393 1 8) Status of Property Owned by Housing Successor
a) Status of Property Acquired prior to February 1, 2012 i) Palm Communities Site (10 Acres) - Financing secured, estimated land transfer is May, 2025 ii) Sagecrest II Site - RFP to be issued 2nd Quarter 2025 for a multifamily community. iii) Arc Village Site - Financing secured, estimated land transfer is May, 2025 b) Status of Property Acquired after February 1, 2012 N/A 9) Outstanding Obligations Related to Replacement/Inclusionary/Production Requirements N/A The expenditure cap is subject to annual Consumer Price Index (CPI) changes. In FY 2023-24 HCD increased the expenditure cap to $263,100 based on changes to the CPI.

Improvements related to Stipulated Judgment No. 51124.

Date Printed: 1/21/2025 Page 2 of 13
482
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
10) Income Targeting Test (Dollars Spent on Affordable Housing Development) ELI (0% - 30% AMI) 60% - 80% AMI Total Expenditures 1 a) Total LMIHAF Housing Development Expenditures (July 1, 2019 - June 30, 2024) FY 2019/20 2
$6,030,000 $0 $6,030,000
FY 2020/21 3
$4,840,683 $0 $7,235,000
FY 2021/22 $0 $0 $0
FY 2022/23 4
$994,142 $635,146 $3,300,000
FY 2023/24 5
$1,040,837 $664,979 $3,455,000
FY 2023/24 6
$307,692 $1,153,846 $3,000,000
Total LMIHAF Housing Development Expenditures $13,213,354 $2,453,971 $23,020,000 b) Compliance with Extremely Low Income Targeting
i) Minimum Expenditures on ELI Households 30%
ii) Actual ELI Expenditures as % of Total LMIHAF Expenditures 57% c) Compliance with 60% AMI - 80% AMI Targeting
i) Maximum Expenditures on 60% - 80% AMI Households 20% ii) Actual 60% - 80% AMI Expenditures as % of Total LMIHAF Expenditures 11% 1 2
3 4
5 6
11) Senior Rental Housing Units Test (Deed Restricted Rental Units Developed in last 10 Years) a) Total Deed Restricted Rental Units Developed in Last 10 Years 1 Total Senior Rental Housing Units (Completed between July 1, 2014 - June 30, 2024) 72 Total Multi-Family Rental Housing Units (Completed between July 1, 2014 - June 30, 2024) 0 All Deed Restricted Rental Units Developed in City (Completed between July 1, 2014 - June 30, 2024) 72 b) % of Senior Rental Housing Units to All Deed Restricted Rental Units 100% c) Maximum Allowable % of Senior Rental Housing Units to All Deed Restricted Rental Units 50% 1 Palm Villas: $3,300,000 loan committed 11/23/22 (72 ELI units and 46 Low units out of 239 restricted units in Phases I and II). Phase I to close escrow/disburse in May 2025.

Includes all expenditures on households earning between 0% and 80% AMI.

Crossings at Palm Desert $7,235,000 loan committed. Disbursed 11/13/23 (93 ELI units and 0 Low units out of 139 restricted units).

Vitalia $6,030,000 loan committed/disbursed. City restricted 81 ELI units.

ARC Village: $3,000,000 loan committed 6/13/24 (4 ELI units and 15 Low units out of 39 restricted units). To close escrow/disburse in May 2025.

Palm Villas: additional $3,455,000 committed on April 11, 2024 (72 ELI units and 46 Low units out of 239 restricted units in Phases I and II). Phase I to close escrow/disburse in May 2025.

The Authority has contributed $23,020,000 to four developments for the future creation of 534 restricted non-senior units; however, the 534 units will not be reflected in this area until the restictive agreements are active. An active agreement occurs once a Certificate of Occupancy is issued. The numbers reported here reflect developments under active restriction during the noted reporting period.

Date Printed: 1/21/2025 Page 3 of 13
483
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
12) Excess Surplus Calculation
a) Unencumbered LMIHAF Balance
i) Available Cash (See #3) $33,465,725
ii) (Less) Funds Committed but Not Disbursed as of June 30, 2024 Palm Villas (239 rental units) - DDLA approved November 23,2022. ($6,755,000) ARC Village - DDLA approved June 13, 2024. ($3,000,000) Unencumbered LMIHAF Balance $23,710,725
b) Deposits for Preceding Four Years
Fiscal Year 2022-23 $2,189,391
Fiscal Year 2021-22 $512,418
Fiscal Year 2020-21 $228,525
Fiscal Year 2019-20 $2,442,063
Total Deposits $5,372,397
c) Excess Surplus Test
a) Maximum Unencumbered LMIHAF Balance
Base Limit $1,000,000
Total Deposits $5,372,397
Maximum Unencumbered LMIHAF Balance $5,372,397
b) Excess Surplus Calculation
Unencumbered LMIHAF Balance $23,710,725
(Less) Maximum Unencumbered LMIHAF Balance ($5,372,397) Computed Excess Surplus $18,338,328
d) Plans for Depleting the Excess Surplus
Sagecrest II Development - RFP to be issued in 2nd Quarter of 2025. $7,000,000 Portola Palms Mobile Home lots (2 ownership lots) - RFP to be issued in 3rd Quarter of 2025. $1,000,000 Self Help Silent Second Loans - Pending HCD approval of Surplus Land Act request. $800,000 University Park (120 Acres) - Project #1 - RFP to be issued in Fiscal Year 2025/26. $6,000,000 University Park (120 Acres) - Project #2 - RFP to be issued in Fiscal Year 2025/26. $6,000,000 PDHA Rental Properties - Reserved for FY 2025/26 and 2026/27 CIPs. $4,000,000 Date Printed: 1/21/2025 Page 4 of 13
484
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
13) Homeownership Portfolio Status
a) Current Restricted Homeownership Inventory Calculation Restricted Homeownership Units as of July 1, 2023 267
Number of Restricted Homeownership Units ADDED During FY 2023/24 1 Number of Restricted Homeownership Units REMOVED During FY 2023/24 Reason for Removal of Units from Inventory
i) Loans repaid due to a sale of the property. (1)
ii) Loans lost in a trustee sale / foreclosure (2)
iii) Loans paid off by homeowners (2)
iv) Adjustment for Housing Mitigation Loans previously counted as LMIHAF Loans (3) Restricted Homeownership Units as of June 30, 2024 1
260
b) Amount of Funds Returned to Housing Successor during FY 2023/24 from Homeownership Units $54,927 c) Housing Successor has not contracted with any outside entity for the management of Homeownership Units 1 Details attached at the end of the Annual Report.

Date Printed: 1/21/2025 Page 5 of 13
485
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
FISCAL YEAR 2023/24 INVENTORY OF ASSISTED HOMEOWNERSHIP UNITS Loan Date Loan Amount Home Improvement Program Loans
1 77270 Michigan Drive 2/26/2010 $27,265.00
2 74210 Goleta Avenue 5/20/2011 $45,000.00
3 75316 Kelsey Circle 9/25/2009 $6,050.00
4 75376 Kelsey Circle North 5/6/2011 $27,692.98
5 72723 Beavertail Street 3/10/2011 $26,947.00
6 74451 DeAnza Way 7/1/2009 $45,000.00
Habitat for Humanity Loans
7 43101 Virginia Ave 1/29/2009 $20,000.00
8 74065 Goleta Ave 6/23/2010 $20,000.00
9 74490 Goleta Ave 4/29/2015 $44,500.00
10 43935 Buena Circle 9/29/1998 $30,000.00
11 73310 Catalina Way 10/3/2000 $35,000.00
12 74470 Goleta Ave 1/15/2004 $44,500.00
13 74016 El Cortez Way 9/15/2010 $31,000.00
14 74030 Goleta Ave 5/27/2011 $42,600.00
15 44885 San Benito Circle 7/26/2017 $25,200.00
16 44879 San Benito Circle 1/15/2017 $34,200.00
Acquisition, Rehab, Resale Loans
17 42662 Rebecca Road 10/25/2000 $22,000.00
18 73386 Royal Palm 5/29/2002 $35,000.00
19 74047 San Marino 10/23/2006 $68,510.00
20 42740 Rebecca Road 5/16/2001 $30,000.00
21 73378 Royal Palm 7/23/1998 $35,000.00
Portola Palms Loans
22 126 Portola Palms 9/30/1994 $2,925.00
23 8 Portola Palms 9/30/1994 $2,925.00
24 62 Portola Palms 1/19/1996 $28,217.00
25 25 Portola Palms 12/5/1996 $25,899.00
26 34 Portola Palms 9/30/1994 $2,925.00
Date Printed: 1/21/2025 Page 6 of 13
486
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
FISCAL YEAR 2023/24 INVENTORY OF ASSISTED HOMEOWNERSHIP UNITS (CONTINUED) Loan Date Loan Amount Desert Rose Loans
27 75-379 South Kelsey Circle (Restrictions Only) 4/24/2002 $0.00 28 75-369 South Kelsey Circle 6/28/1996 $11,934.00
29 75-367 South Kelsey Circle 7/31/1996 $17,901.00
30 75-359 South Kelsey Circle 7/10/1996 $8,944.00
31 75-357 South Kelsey Circle 3/31/2009 $23,100.00
32 75-349 South Kelsey Circle 6/28/2002 $17,876.00
33 75-347 South Kelsey Circle 4/7/2000 $31,575.00
34 75-339 South Kelsey Circle 10/23/2003 $27,560.00
35 75-337 South Kelsey Circle 8/9/1996 $16,269.00
36 75-329 South Kelsey Circle 8/4/1998 $50,777.00
37 43-940 Rockrose Court 6/19/1996 $8,944.00
38 43-960 Rockrose Court 7/25/1996 $8,009.00
39 49-975 Rockrose Court (Restrictions Only) 6/28/1996 $0.00 40 43-980 Rockrose Court 6/27/1996 $13,492.00
41 43-995 Rockrose Court 4/29/1998 $1,589.00
42 43-955 Rockrose Court 7/25/1996 $11,496.00
43 43-915 Rockrose Court 6/17/2004 $500.00
44 43-905 Rockrose Court 6/28/1996 $11,501.00
45 75-319 South Kelsey Circle 10/22/2002 $3,300.00
46 75-309 South Kelsey Circle 6/26/2002 $5,000.00
47 75-307 South Kelsey Circle 5/2/1997 $1,479.00
48 75-299 South Kelsey Circle 3/2/2009 $11,199.00
49 75-297 South Kelsey Circle 5/10/2000 $4,000.00
50 75-294 North Kelsey Circle 4/18/2001 $17,945.00
51 75-296 North Kelsey Circle 12/17/1996 $17,478.00
52 75-304 North Kelsey Circle 4/24/2015 $20,000.00
53 75-306 North Kelsey Circle 8/19/1997 $13,543.00
54 75-314 North Kelsey Circle 9/4/1997 $2,808.00
55 75-316 North Kelsey Circle 12/4/1996 $13,778.00
56 75-326 North Kelsey Circle 9/17/2014 $31,810.00
57 43-795 Kelsey Court 12/23/2005 $2,000.00
58 43-775 Kelsey Court 2/19/2004 $3,500.00
59 73-755 Kelsey Court 2/16/2016 $27,000.00
60 43-735 Kelsey Court 9/24/1996 $75,000.00
Date Printed: 1/21/2025 Page 7 of 13
487
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
FISCAL YEAR 2023/24 INVENTORY OF ASSISTED HOMEOWNERSHIP UNITS (CONTINUED) Loan Date Loan Amount 61 43-715 Kelsey Court 9/4/2003 $5,000.00
62 43-705 Kelsey Court 3/14/2018 $30,000.00
63 43-685 Kelsey Court 1/20/2006 $2,000.00
64 43-675 Kelsey Court 5/2/1997 $14,176.00
65 43-680 Kelsey Court 7/21/2005 $5,000.00
66 43-690 Kelsey Court 9/4/2007 $24,500.00
67 43-710 Kelsey Court 4/24/2015 $28,884.43
68 43-720 Kelsey Court (Restrictions Only) 9/6/2001 $0.00 69 43-740 Kelsey Court 7/2/2003 $22,000.00
70 43-760 Kelsey Court 3/30/1998 $47,253.00
71 43-780 Kelsey Court 7/26/1999 $1,529.00
72 75-334 North Kelsey Circle 1/31/1997 $14,824.00
73 75-344 North Kelsey Circle 5/1/1997 $16,858.00
74 75-346 North Kelsey Circle 5/2/1997 $17,805.00
75 75-354 North Kelsey Circle (Restrictions Only) 10/31/1997 $0.00 76 75-356 North Kelsey Circle 7/7/1998 $51,948.00
77 75-364 North Kelsey Circle 11/20/1997 $14,034.00
78 75-366 North Kelsey Circle 11/5/2021 $37,500.00
79 75-376 North Kelsey Circle 1/23/1997 $14,964.00
80 75-406 Wildflower Lane 5/9/1997 $13,306.00
81 75-414 Wildflower Lane 11/10/2004 $3,400.00
82 75-424 Wildflower Lane 3/29/2007 $19,239.00
83 75-426 Wildflower Lane 6/8/2021 $45,000.00
84 75-436 Wildflower Lane 10/7/2016 $34,093.04
85 75-444 Wildflower Lane 4/29/1997 $17,937.00
86 75-446 Wildflower Lane 6/25/2008 $15,000.00
87 75-454 Wildflower Lane 6/8/2006 $20,000.00
88 75-456 Wildflower Land 12/16/1997 $17,369.00
89 75-464 Wildflower Lane 8/7/2009 $32,000.00
90 75-466 Wildflower Lane 6/26/1997 $17,899.00
91 75-474 Wildflower Lane 11/25/1997 $6,147.00
92 75-476 Wildflower Lane 12/7/2012 $30,000.00
93 43-820 Blueberry Lane 10/30/2015 $23,000.00
94 43-860 Blueberry Lane 4/18/2006 $24,347.00
95 43-880 Blueberry Lane 7/31/2008 $25,500.00
Date Printed: 1/21/2025 Page 8 of 13
488
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
FISCAL YEAR 2023/24 INVENTORY OF ASSISTED HOMEOWNERSHIP UNITS (CONTINUED) Loan Date Loan Amount 96 43-910 Blueberry Lane 1/27/1998 $12,834.00
97 43-920 Blueberry Lane 10/31/1997 $17,568.00
98 43-940 Blueberry Lane 5/20/1998 $37,679.00
99 43-960 Blueberry Lane 12/30/2005 $2,500.00
100 43-980 Blueberry Lane 6/30/2010 $13,100.00
101 75-485 Orange Blossom Lane 7/31/1997 $11,916.00
102 75-475 Orange Blossom Lane 7/25/2014 $5,000.00
103 75-473 Orange Blossom Lane 4/24/2015 $24,000.00
104 75-465 Orange Blossom Lane 6/5/1997 $16,481.00
105 75-463 Orange Blossom Lane 5/26/2004 $500.00
106 43-925 Blueberry Lane 5/1/1997 $16,425.00
107 75-464 Orange Blossom Lane 6/30/2016 $3,500.00
108 75-456 Orange Blossom Lane 9/22/1997 $6,984.00
109 75-454 Orange Blossom Lane 10/27/2006 $20,000.00
110 75-446 Orange Blossom Lane 2/28/2003 $48,156.00
111 75-444 Orange Blossom Lane 11/7/2000 $500.00
112 75-436 Orange Blossom Lane 11/21/2006 $32,250.00
113 75-434 Orange Blossom Lane 4/21/1998 $47,537.00
114 75-426 Orange Blossom Lane 5/19/1998 $45,385.00
115 75-424 Orange Blossom Lane 3/13/2002 $16,750.00
116 75-416 Orange Blossom Lane 7/1/2005 $1,500.00
117 75-414 Orange Blossom Lane 4/3/1998 $38,849.00
118 75-406 Orange Blossom Lane 4/30/2021 $24,000.00
119 43-880 Yellow Sage Drive 7/29/2005 $1,500.00
120 43-860 Yellow Sage Drive 5/1/1998 $6,121.00
121 43-850 Yellow Sage Drive 10/30/1997 $11,762.00
122 43-830 Yellow Sage Drive 4/30/2004 $24,000.00
123 43-820 Yellow Sage Drive 6/5/1997 $17,827.00
124 43-800 Yellow Sage Drive 5/18/2001 $17,832.00
125 75-405 Wildflower Lane 4/8/2005 $500.00
126 75-423 Wildflower Lane 4/7/1998 $52,684.00
127 75-425 Wildflower Lane 10/13/2000 $16,169.00
128 75-433 Wildflower Lane (Restriction Only) 5/19/1997 $0.00 129 75-435 Wildflower Lane 1/28/2011 $27,000.00
130 75-443 Wildflower Lane 9/18/1997 $2,458.00
Date Printed: 1/21/2025 Page 9 of 13
489
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
FISCAL YEAR 2023/24 INVENTORY OF ASSISTED HOMEOWNERSHIP UNITS (CONTINUED) Loan Date Loan Amount 131 75-445 Wildflower Lane 11/14/1997 $18,032.00
132 75-453 Wildflower Lane 12/30/1997 $8,845.00
133 75-455 Wildflower Lane 9/30/2013 $27,500.00
134 75-463 Wildflower Lane 12/31/1997 $1,379.00
135 75-465 Wildflower Lane 8/27/1997 $17,838.00
136 75-475 Wildflower Lane 10/20/2006 $20,000.00
137 43-905 Blueberry Lane 1/27/2004 $500.00
138 43-895 Yellow Sage Drive 6/25/1996 $13,577.00
139 75-370 South Kelsey Circle 8/29/1996 $8,160.00
140 75-360 South Kelsey Circle 9/5/1997 $9,592.00
141 75-358 South Kelsey Circle 7/30/1996 $14,065.00
142 75-350 South Kelsey Circle (Restrictions Only) 8/28/1996 $0.00 143 75-348 South Kelsey Circle 7/28/2005 $1,500.00
144 75-338 South Kelsey Circle 11/27/1996 $17,889.00
145 75-330 South Kelsey Circle 11/20/1996 $14,302.00
146 75-328 South Kelsey Circle (Restrictions Only) 9/30/1996 $0.00 147 75-320 South Kelsey Circle 7/12/1996 $12,933.00
148 75-318 South Kelsey Circle 5/4/1998 $19,319.00
149 75-310 South Kelsey Circle (Restrictions Only) 7/10/1996 $0.00 150 75-308 South Kelsey Circle (Restrictions Only) 12/18/1997 $0.00 151 75-313 North Kelsey Circle 7/25/2012 $3,895.00
152 75-315 North Kelsey Circle 10/4/2019 $10,000.00
153 75-323 North Kelsey Circle 7/31/1996 $14,856.00
154 75-325 North Kelsey Circle 6/17/1997 $18,088.00
155 75-333 North Kelsey Circle 4/6/2015 $28,000.00
156 75-335 North Kelsey Circle 5/13/1998 $41,426.00
157 75-343 North Kelsey Circle 6/1/2021 $31,000.00
158 75-345 North Kelsey Circle 5/1/1998 $47,143.00
159 75-353 North Kelsey Circle 11/5/2003 $4,250.00
160 75-355 North Kelsey Circle 2/27/1998 $32,569.00
161 75-363 North Kelsey Circle 8/20/1997 $8,913.00
162 75-365 North Kelsey Circle 3/12/1997 $17,159.00
163 43-815 Yellow Sage Drive 8/26/2013 $1,000.00
164 43-825 Yellow Sage Drive 5/25/2000 $14,000.00
165 75-360 Yellow Sage Court 8/28/1996 $10,619.00
Date Printed: 1/21/2025 Page 10 of 13
490
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
FISCAL YEAR 2023/24 INVENTORY OF ASSISTED HOMEOWNERSHIP UNITS (CONTINUED) Loan Date Loan Amount 166 75-356 Yellow Sage Court 3/4/2005 $16,000.00
167 75-354 Yellow Sage Court 11/15/1996 $17,478.00
168 75-346 Yellow Sage Court 11/8/1996 $17,256.00
169 75-344 Yellow Sage Court 8/22/2003 $15,000.00
170 75-336 Yellow Sage Court 11/17/2000 $2,835.00
171 75-334 Yellow Sage Court 1/18/2006 $27,300.00
172 75-343 Yellow Sage Court 5/1/1997 $2,700.00
173 75-345 Yellow Sage Court (Restrictions Only) 8/30/1996 $0.00 174 75-353 Yellow Sage Court 8/28/1996 $11,722.00
175 75-355 Yellow Sage Court 9/18/1996 $10,361.00
176 43-875 Yellow Sage Drive 1/21/1998 $32,569.00
177 43-865 Yellow Sage Drive 3/4/2022 $18,000.00
178 75-365 Yellow Sage Court 10/30/2008 $25,500.00
Falcon Crest Loans
179 42025 Hovley Gardens Drive 2/22/2008 $49,030.00
180 42035 Hovley Gardens Drive 2/21/2008 $49,237.00
181 42045 Hovley Gardens Drive 2/20/2008 $34,095.00
182 42055 Hovley Gardens Drive 4/1/2008 $48,975.00
183 42065 Hovley Gardens Drive 6/5/2015 $25,000.00
184 42076 Hovley Gardens Drive 4/15/2020 $42,500.00
185 42085 Hovley Gardens Drive 1/7/2008 $49,095.00
186 42095 Hovley Gardens Drive 1/8/2008 $10,775.00
187 74576 Falcon Lane 1/14/2008 $40,975.00
188 74562 Falcon Lane 1/7/2008 $45,030.00
189 74548 Falcon Lane 12/21/2007 $30,975.00
190 74534 Falcon Lane 12/21/2007 $25,030.00
191 74520 Falcon Lane 12/24/2007 $10,975.00
192 74492 Falcon Lane 12/21/2007 $49,975.00
193 74478 Falcon Lane 11/19/2013 $49,583.38
194 74464 Falcon Lane 12/21/2007 $39,975.00
195 74450 Falcon Lane 1/16/2008 $49,775.00
196 42050 Golden Eagle Lane 2/19/2015 $20,000.00
197 42078 Golden Eagle Lane 12/21/2007 $28,030.00
198 42092 Golden Eagle Lane 12/21/2007 $30,120.00
199 42106 Golden Eagle Lane 12/27/2007 $38,095.00
Date Printed: 1/21/2025 Page 11 of 13
491
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
FISCAL YEAR 2023/24 INVENTORY OF ASSISTED HOMEOWNERSHIP UNITS (CONTINUED) Loan Date Loan Amount 200 42120 Golden Eagle Lane 12/21/2007 $49,120.00
201 42134 Golden Eagle Lane 2/6/2008 $41,095.00
202 42148 Golden Eagle Lane 2/29/2008 $26,120.00
203 42162 Golden Eagle Lane 12/21/2007 $17,530.00
204 42176 Golden Eagle Lane 10/4/2007 $45,120.00
205 42190 Golden Eagle Lane 8/26/2014 $50,000.00
206 42204 Golden Eagle Lane 4/10/2015 $30,000.00
207 42218 Golden Eagle Lane 10/4/2007 $30,120.00
208 42232 Golden Eagle Lane 10/3/2007 $43,095.00
209 42246 Golden Eagle Lane 10/5/2007 $15,920.00
210 42253 Verdin Lane 8/26/2014 $40,271.00
211 42239 Verdin Lane 5/6/2015 $30,000.00
212 42225 Verdin Lane 10/24/2007 $49,208.00
213 42211 Verdin Lane 10/17/2007 $48,030.00
214 42197 Verdin Lane 2/26/2015 $50,000.00
215 42183 Verdin Lane 10/17/2007 $34,095.00
216 42169 Verdin Lane 10/19/2007 $48,600.00
217 42155 Verdin Lane 10/19/2007 $15,030.00
218 42141 Verdin Lane 10/19/2007 $45,095.00
219 42127 Verdin Lane 10/23/2007 $46,120.00
220 42113 Verdin Lane 12/21/2007 $30,895.00
221 42071 Verdin Lane 7/3/2014 $49,800.00
222 42057 Verdin Lane 12/21/2007 $48,475.00
223 42090 Hovley Gardens Drive 12/21/2007 $48,095.00
224 42100 Hovley Gardens Drive 6/16/2017 $33,000.00
225 42162 Verdin Lane 12/1/2022 $50,000.00
226 42190 Verdin Lane 7/3/2014 $33,000.00
227 42204 Verdin Lane 5/25/2016 $24,286.82
228 42218 Verdin Lane 6/19/2017 $30,000.00
229 74530 King Fisher Circle 2/22/2010 $34,997.00
230 74558 King Fisher Circle 6/20/2007 $25,620.00
231 74572 King Fisher Circle 10/14/2014 $50,000.00
232 74586 King Fisher Circle 6/20/2007 $13,440.00
233 74600 King Fisher Circle 11/1/2017 $50,000.00
234 74614 King Fisher Circle 7/23/2007 $14,895.00
Date Printed: 1/21/2025 Page 12 of 13
492
FY 2023/24

LOW AND MODERATE INCOME HOUSING ASSET FUND

ANNUAL REPORT
FISCAL YEAR 2023/24
FISCAL YEAR 2023/24 INVENTORY OF ASSISTED HOMEOWNERSHIP UNITS (CONTINUED) Loan Date Loan Amount 235 74628 King Fisher Circle 6/21/2007 $41,358.00
236 42099 Verdin Lane 2/26/2015 $50,000.00
237 74656 King Fisher Circle 6/22/2007 $41,867.00
238 74670 King Fisher Circle 6/9/2014 $41,000.00
239 74684 King Fisher Circle 6/20/2007 $11,440.00
240 74698 King Fisher Circle 6/27/2007 $49,771.00
241 74712 King Fisher Circle 6/21/2007 $35,030.00
242 74726 King Fisher Circle (Restrictions Only) 7/6/2007 $0.00 243 74747 King Fisher Circle 6/20/2007 $40,195.00
244 74733 King Fisher Circle 7/9/2007 $42,975.00
245 74691 King Fisher Circle 6/22/2007 $15,920.00
246 74677 King Fisher Circle 9/14/2021 $50,000.00
247 74663 King Fisher Circle 6/22/2007 $48,030.00
248 74621 King Fisher Circle 7/17/2007 $39,530.00
249 74607 King Fisher Circle 6/21/2007 $19,975.00
250 74593 King Fisher Circle 6/27/2007 $41,328.00
251 74579 King Fisher Circle 7/9/2007 $44,975.00
252 74565 King Fisher Circle 6/20/2007 $49,205.00
253 74551 King Fisher Circle 7/12/2007 $10,775.00
254 74537 King Fisher Circle 5/15/2013 $33,000.00
255 74523 King Fisher Circle 10/2/2007 $27,975.00
256 74509 King Fisher Circle 9/27/2007 $48,820.00
257 74495 King Fisher Circle 1/15/2008 $47,975.00
258 74481 King Fisher Circle 9/28/2007 $48,095.00
259 74453 King Fisher Circle 9/28/2007 $41,975.00
260 74481 King Fisher Circle 9/27/2007 $24,030.00
Date Printed: 1/21/2025 Page 13 of 13
493
494

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 13, 2025
PREPARED BY: Veronica Chavez, Director of Finance
SUBJECT: SELF-HELP PROJECT CLOSE OUT AND FINANCIAL SUPPORT RECOMMENDATION:

Authorize payment of $65,000 to Coachella Valley Housing Co. to provide financial support to close out the Affordable Housing Self-Help Project from the City’s Housing Mitigation Funds.

BACKGROUND/ANALYSIS:

In May 2020, the City Council authorized the Development and Disposition Agreement (DDA) with the Coachella Valley Housing Coalition (CVHC) for the transfer of vacant land to support the construction of fourteen (14) single-family detached homes. These homes were made available through the Self-Help program. They were to be sold at an affordable housing price to qualified very low- or low-income first-time homebuyers employed within Palm Desert’s jurisdiction. To ensure the homes remained affordable, the City also provided homebuyer assistance loans to eligible buyers.

The DDA outlined the conveyance of the vacant land to CVHC for $560,000 (the “Purchase Price”) via Grant Deed. In addition, the City Council approved a loan of $350,000 to assist income-qualified homebuyers with the affordability of the homes. Prior to construction, CVHC approached the City for an additional subsidy, citing increased costs resulting from the pandemic. The additional loan, not to exceed $355,000, brought the City’s total contribution to $1,265,000.

Self-Help 14 Homes - Financial Breakdown:

Category Land Donation Loans/Subsidy Total City Contribution Initial Subsidy (Buyers) $560,000 $350,000 $910,000
Change #1 -Subsidy (Buyers) $355,000 $1,265,000
Change #2 -Subsidy (CVHC) $65,000 $1,330,000
On October 30, 2024, CVHC hosted a Housewarming Event for the families who purchased the 14 homes, marking the successful completion of the project. The event was well-attended and celebrated the culmination of the partnership that made this development possible.

However, during the coordination of the final escrow closings, CVHC informed the City that, despite their best efforts, they were facing an additional budget shortfall after final payments to all vendors. Throughout the project, City staff worked diligently to ensure that cost estimates were accurate and that funding was adequate. At the outset, CVHC had adjusted its bid to ensure project viability, removing contingencies. Unfortunately, this led to unforeseen costs 495
City of Palm Desert
(CVHC Project Close Out Report)

when utility-provided maps turned out to be inaccurate, resulting in additional expenses that would have been covered by the contingency funds, had they not been eliminated to meet the budget.

After several discussions between City staff and CVHC and given the intrinsic value of providing these homes to income-qualified families in a highly desirable Palm Desert location, staff recommends sharing in the cost overrun by contributing $65,000, which represents half of the additional funds CVHC initially requested.

Legal Review:

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

FINANCIAL IMPACT:

Funds are available in the Housing Mitigation Fund Account Number 2144490-4390101. The additional payment will bring the City’s total contribution to $1,330,000 for the development of the 14 Self Help homes, or $95,000/home on average. There is no impact to the General Fund with this action.

ATTACHMENTS:

1. CVHC Request for Additional Funding
496
497
498

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 13, 2025
PREPARED BY: Austin Yaple, Accounting Manager
Veronica Chavez, Finance Director
SUBJECT: RECEIVE AND FILE THE CITY OF PALM DESERT AUDITED ANNUAL

COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL
YEAR ENDED JUNE 30, 2024.

RECOMMENDATION:

Receive and file the audited Annual Comprehensive Financial Report (ACFR) for the City of Palm Desert for the fiscal year ended June 30, 2024.

BACKGROUND/ANALYSIS:

Lance, Soll & Lunghard, LLP performed and completed the annual independent audit for the fiscal year ended June 30, 2024, for the City of Palm Desert, including the Palm Desert Housing Authority, in accordance with generally accepted auditing standards. In the auditor’s opinion, the basic financial statements present fairly, in all material respects, the financial position of the City of Palm Desert as of June 30, 2024, as well as the results of its operations and the cash flows of its proprietary funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

As part of their audit, the auditors test the City’s internal controls. Attached is the Report on Internal Controls over Financial Reporting and on Compliance and other matters based on an audit of Financial Statements performed in accordance with Government Auditing Standards.

The ACFR was submitted for the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. To receive the Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements, as it has for the past 27 years.

Legal Review:

This report has been reviewed by the City Attorney’s Office Appointed Body Recommendation:

The Finance Committee received the Annual Comprehensive Financial Report (ACFR) at their meeting on January 28, 2025 and made a recommendation to receive and file the report as presented.
499
City of Palm Desert
Receive and file ACFR for fiscal year ended June 30, 2024

FINANCIAL IMPACT:

There is no fiscal impact associated with this action.

ATTACHMENTS:

1. City of Palm Desert audited Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024

2. Auditor’s letter to City Council

3. Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

4. Appropriations Limit Worksheet
500
501

ANNUAL COMPREHENSIVE FINANCIAL REPORT
of the

CITY OF PALM DESERT, CALIFORNIA
For the Year Ended
June 30, 2024
Prepared by the Finance Department
City Treasurer/Director of Finance
Veronica Chavez
Deputy Director of Finance
John Ramont
Accounting Manager
Austin Yaple
Finance Staff
(in alphabetical order by positions and last names)

ACCOUNTANT
Arlene Arellano

ACCOUNTANT
Tristan Morales

ACCOUNTANT
Sarah Sullivan

ACCOUNTING TECHNICIAN II
Horacio Celaya

ACCOUNTING TECHNICIAN I
Araceli Castro

ACCOUNTING TECHNICIAN I
Sarah Castro

FINANCE SUPERVISOR
James Bounds

MANAGEMENT ANALYST I
Skky Garcia

MANAGEMENT ANALYST I
Staci Kolbeck

PAYROLL COORDINATOR
Miguel Zepeda

SENIOR MANAGEMENT ANALYST
Cristal Ortega
502
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
503

CITY OF PALM DESERT, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Number

INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................................................. i GFOA Certificate of Achievement for Excellence in Financial Reporting ................................................................ v List of Principal Officials ........................................................................................................................................ vii Organizational Chart ............................................................................................................................................. viii

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT ................................................................................................................. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................................................ 5

BASIC FINANCIAL STATEMENTS
Statement of Net Position .............................................................................................................................. 17 Statement of Activities .................................................................................................................................... 18 Balance Sheet – Governmental Funds .......................................................................................................... 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................................. 23 Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds ...................................................................................................... 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to
the Statement of Activities .......................................................................................................................... 27 Statement of Net Position – Proprietary Funds .............................................................................................. 28 Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Funds ................................................................................................................ 29 Statement of Cash Flows – Proprietary Funds .............................................................................................. 30 Statement of Fiduciary Net Position – Fiduciary Funds ................................................................................. 32 Statement of Changes in Fiduciary Net Position – Fiduciary Funds.............................................................. 33 Notes to Basic Financial Statements ............................................................................................................. 35 504

CITY OF PALM DESERT, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Number

REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous Plan – Agent Multiple-Employer Schedule of Changes in Net Pension Liability and Related Ratios ............................................................................................ 88 Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios ................................................ 90 Schedule of Plan Contributions – OPEB ........................................................................................................ 93 Budgetary Comparison Schedule by Department – General Fund ............................................................... 94 Budgetary Comparison Schedule – Prop A Fire Tax ..................................................................................... 96 Budgetary Comparison Schedule –Housing Asset Fund ............................................................................... 97 Budgetary Comparison Schedule – Housing Authority .................................................................................. 98 Notes to Required Supplementary Information .............................................................................................. 99

SUPPLEMENTARY SCHEDULES
Combining Balance Sheet – Other Governmental Funds ............................................................................ 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Other Governmental Funds ............................................................................................. 112 Budgetary Comparison Schedules – Special Revenue Funds:

Traffic Safety .......................................................................................................................................... 121 Gas Tax ................................................................................................................................................. 122 Measure A ............................................................................................................................................. 123 Housing Mitigation Fees ........................................................................................................................ 124 Community Development Block Grant .................................................................................................. 125 Child Care Program ............................................................................................................................... 126 Public Safety Police Grants ................................................................................................................... 127 New Construction Tax ........................................................................................................................... 128 Planned Drainage .................................................................................................................................. 129 Parks and Recreational Facilities .......................................................................................................... 130 Traffic Signals ........................................................................................................................................ 131 Fire Facilities Restoration ...................................................................................................................... 132 Recycling ............................................................................................................................................... 133 Energy Independence Loan .................................................................................................................. 134 Air Quality Management ........................................................................................................................ 135 Aquatic Center ....................................................................................................................................... 136 Cannabis Compliance ........................................................................................................................... 137 El Paseo Assessment District ................................................................................................................ 138 Various Landscape and Lighting District ............................................................................................... 139 Affordable Housing Fund ....................................................................................................................... 140 Permanent Local Housing Allocation Grant .......................................................................................... 141 Opioid Settlement .................................................................................................................................. 142 Library Services ..................................................................................................................................... 143 505

CITY OF PALM DESERT, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Number
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Restricted Capital Project Fund ............................................................................................................. 144 Budgetary Comparison Schedules – Capital Project Funds:

Capital Projects Reserve ....................................................................................................................... 145 Drainage Facilities ................................................................................................................................. 146 Economic Development ......................................................................................................................... 147 Parks and Recreational Facilities .......................................................................................................... 148 Art in Public Places ................................................................................................................................ 149 Signalization .......................................................................................................................................... 150 Capital Golf ............................................................................................................................................ 151 Buildings ................................................................................................................................................ 152 Library .................................................................................................................................................... 153 Budgetary Comparison Schedule – Debt Service Fund:

City Highland Undergrounding .............................................................................................................. 154 Internal Service Funds:

Combining Statement of Net Position – Internal Service Funds ........................................................... 155 Combining Statement of Revenues, Expenses and Changes
In Fund Net Position – Internal Service Fund ................................................................................. 156 Combining Statement of Cash Flows – Internal Service Funds ............................................................ 157 Custodial Funds:

Combining Statement of Net Position – All Custodial Funds ................................................................ 158 Combining Statement of Changes in Fiduciary Net Position – All Custodial Funds ............................. 159

STATISTICAL SECTION
Description of Statistical Section ........................................................................................................................ 161 Financial Trends:

Net Position by Component ......................................................................................................................... 163 Changes in Net Position ............................................................................................................................... 164 Fund Balances of Governmental Funds ...................................................................................................... 167 Changes in Fund Balances of Governmental Funds ................................................................................... 168 Graphs – Changes in Fund Balances of Governmental Funds ................................................................... 169 Supplemental Historical General Fund Revenues ....................................................................................... 170 Supplemental Graph – Historical General Fund Revenues ......................................................................... 171 Supplemental Historical General Fund Expenditures .................................................................................. 172 Supplemental Graph – Historical General Fund Expenditures .................................................................... 173 Supplemental Historical General Revenue and Expenditures Per Capita ................................................... 175 506

CITY OF PALM DESERT, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Number
Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property ............................................................. 176 Historical Net Assessed Taxable Values Citywide and Graph – Assessed Valuation Growth .................... 177 Supplemental FY 2020 and 2019 Breakdown of Basic 1% Property Tax Rate Not In Redevelopment Project Area ......................................................................................... 178 Property Tax Rates Direct and Overlapping Property Tax Rates ................................................................ 179 Principal Property Taxpayers ....................................................................................................................... 180 Property Tax Levies and Collections ........................................................................................................... 181 Supplemental Top 25 Sales Tax Generators and Graph – Historical Sales Tax Trends ............................ 182 Debt Capacity:

Ratios of Outstanding Debt by Type ............................................................................................................ 183 Ratios of General Bonded Debt Outstanding ............................................................................................... 184 Supplemental Special Assessment Information........................................................................................... 185 Direct and Overlapping Government Activities Debt ................................................................................... 186 Legal Debt Margin Information ..................................................................................................................... 187 Pledged-Revenue Coverage ........................................................................................................................ 188 Demographic and Economic Information:

Demographic and Economic Statistics ........................................................................................................ 189 Principal Employers ..................................................................................................................................... 190 Supplemental Miscellaneous Statistics ........................................................................................................ 191 Operating Information:

Full-Time Equivalent City Government Employees by Function/Program ................................................... 192 Operating Indicators by Function/Program .................................................................................................. 193 Capital Asset Statistics by Function/Program .............................................................................................. 194

SUPPLEMENTAL REDEVELOPMENT CUSTODIAL STATISTICAL SECTION Redevelopment Custodial Project Areas Map ............................................................................................. 196 Tax Allocation Bond Issue Information ........................................................................................................ 197 Historical Tax Increment – Redevelopment Property Tax Trust Fund Summary ........................................ 198 507

C I T Y O F P A L M D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346-0611
[email protected]
January 27, 2025
Residents of Palm Desert,
Honorable Mayor and Members of the City Council
The Finance Department is pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Palm Desert for the fiscal year ended June 30, 2024.

The financial statements are prepared in accordance with generally accepted accounting principles (GAAP) and the Governmental Accounting Standards Board (GASB). We believe the data, as presented, is accurate in all material respects and is presented in a manner that fairly represents the financial position and changes in financial position of the City as measured by the financial activity of each of its funds. We also believe that all disclosures necessary to enable the reader to fully understand the City's financial activities have been presented. Responsibility for the accuracy, completeness and reliability of the information contained in this report rests with the City.

The City of Palm Desert conducts an annual audit, which is performed by an independent certified public accountant. The independent audit of the City’s financial statements for fiscal year ended June 30, 2024 was conducted by Lance Soll & Lunghard, LLP. The auditor’s unmodified opinion on the basic financial statements is included in the Financial Section of this report. This is the most favorable opinion.

As part of the City’s annual audit engagement, the auditors reviewed the City’s internal control structure as well as compliance with applicable laws and regulations. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance, that the financial statements are free of any material misstatements. The results of the City’s annual audit for fiscal year ended June 30, 2024 provided no instances of material weaknesses in connection with the internal control structure or significant violations of applicable laws and regulations.

As recipients of federal, state and county financial resources, the City may be required to undergo an annual single audit. For the fiscal year ended June 30, 2024, the City will have a single audit performed. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.

PROFILE OF THE CITY OF PALM DESERT
Located in Riverside County in the geographical center of the Coachella Valley, Palm Desert was incorporated on November 26, 1973, as a General Law City. On November 4, 1997, voters overwhelmingly approved Measure LL adopting a city charter.

Under the provisions of the charter, the City of Palm Desert has full authority over its own municipal affairs including:
bidding and contracting procedures; regulation of parks, libraries, and other facilities; certain fees; imposition of taxes; municipal zoning; salaries of officials and employees; municipal utilities; and municipal election procedures.

The City operates under a Council-Manager form of government. The City Council is comprised of five members elected to four-year terms every two years by the residents of the City. The City has two-districts, District One includes neighborhoods in and around the Palm Desert Civic Center core, comprising about 20% of the City’s population which is represented by one (1) elected City Council member. District Two comprises 80% of the City’s i
508
population, which is represented by four (4) elected City Council members. Each December, the City Council selects the Mayor from among its members for a one-year term. The City Council appoints the City Manager and the City Attorney.

The City operates as a “contract city,” primarily utilizing agreements with other governmental entities, private firms, and individuals to provide many services. Contracted services include: police protection through the County of Riverside; fire protection through Cal-Fire; animal control; road maintenance and construction services; legal services; landscape maintenance; and recreation program services. Palm Desert is a member of the California Joint Powers Insurance Authority that provides insurance coverage for the City. Water, sewage treatment and wastewater disposal are provided by the Coachella Valley Water District. Southern California Gas Company supplies natural gas to the City and electric power is provided by the Southern California Edison Company.

Disposal is provided by Burrtec Waste & Recycling Services. Telephone/Internet service is available through Frontier Communications. Cable television/Internet service is provided by Time Warner Cable/Spectrum.

The City provides traditional municipal, public enterprise, and housing services as follows:

Municipal Services
Public improvements, infrastructure and maintenance
Public art and community promotion
Planning, zoning, building and engineering
Housing and community development
Code compliance
Economic development and business advocacy
Legislative, city clerk, visitor’s services, public information, general administration, fiscal services, human resources, and risk management
Building permitting, inspections and library services
Public Enterprise Services Blended & Discrete Component Units Golf course Palm Desert Housing Authority
Office complex Palm Desert Financing Authority
Internal service Palm Desert Recreational Facilities Corporation The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General, Special Revenue, Debt Service, and Capital Project Funds are included in the annual appropriated budget. Budgetary amounts for Debt Service, Capital Projects, and certain Special Revenue Funds are adopted annually; however, these budgets are considered to be long-term in nature.

The City also maintains an encumbrance accounting system of purchase orders and contracts at the fund level as a means of accomplishing budgetary control. At each fiscal year end, open encumbrances are carried over to the new fiscal year. Purchase orders are reviewed to ensure that funds are available and that requests are properly authorized prior to being released to vendors.

The adopted budget for fiscal year 2023-2024 was prepared in accordance with accounting principles generally accepted in the United States of America. As reflected in the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management.

LOCAL ECONOMY
The City comprises an area of approximately 26 square miles and, as of January 1, 2024, has a population of 50,889 according to data provided by the California Department of Finance. In addition to permanent residents, approximately 20,000 seasonal residents make Palm Desert their home for three to six months each year.

The City has cultivated a sound foundation of general fund revenues including sales tax, transient occupancy tax, licenses and permits, property tax, and investment earnings. The City’s main revenue sources are transient occupancy taxes and sales tax. Due to the timing of the City’s incorporation, in 1973, and the implementation of Proposition 13, the City receives less than 7 percent of property taxes; therefore, the City relies heavily on sales tax and transient occupancy tax.

Palm Desert Civic Center
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As a community where economic, environmental, social, and cultural development flourishes, Palm Desert is a much sought-after place to visit and reside. Palm Desert is the first city in Riverside County to create a public art program and is home to numerous cultural attractions including: the McCallum Theatre for the Performing Arts, a 1,127-seat theater that hosts a wide variety of A-list entertainers, touring theatrical productions and arts-related educational programs; the Living Desert Zoo and Gardens, a 1,200-acre facility containing a wide array of plants and animals from desert regions around the world; and the Palm Desert Art in Public Places program, a museum without walls, featuring more than 150 works of art on permanent display throughout the city.

Palm Desert’s active, five-star accredited Chamber of Commerce has more than 1,125 members who work to promote, support, and enhance business prosperity, civic vitality, and the quality of life within their community.

Noted for its extensive array of retail options, including the world-famous upscale shopping destination of El Paseo, Palm Desert is home to a variety of malls and retail centers including The Shops at Palm Desert, Desert Crossing, The Gardens on El Paseo, and El Paseo Village.

The internationally acclaimed Desert Willow Golf Resort, one of the nation’s premier municipal courses, boasts
36 holes of championship golf and stunning scenery in close proximity to first-class hotel accommodations and fine dining.

And in 2024, ground was broken for development to build a five-and-a-half-acre Wavegarden Cove, DSRT Surf, which will make it the largest of its kind in the United States.

In addition to being the home of the Coachella Valley’s only community college, College of the Desert, Palm Desert is the location of satellite campuses for both the University of California, Riverside, and California State University, San Bernardino, the region’s only public, four-year university.

The State of California Employment Development Department Labor Market Information Division reported that the City of Palm Desert had an unemployment rate of 4.8% compared to Riverside County, which had a rate of 5.0%.

Worldwide issues such as inflation and supply-chain
constraints presented a new set of challenges over the course of the COVID-19 pandemic, and the City continues to face such challenges through the same lens of fiscal responsibility and sound financial practices that have proven successful in the past. Despite such challenges, the City of Palm Desert continued to provide exceptional services and amenities to residents throughout the course of the year.

LONG-TERM FINANCIAL PLANNING
In June 2024, the City Council approved a total of $72.4 million in funding for various capital improvement projects for Fiscal Year 2024-25. Projects include resurfacing streets, sidewalk repairs and construction, accessibility improvements, street widening, improving drainage areas, park improvements, and improvements at Desert Willow Golf Resort and Parkview Office Complex.

CERTIFICATES OF AWARDS FOR OUTSTANDING FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Palm Desert for its comprehensive annual financial report for the fiscal year ended June 30, 2023. This was the 26th consecutive year that the City has achieved this prestigious award. To receive the Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

Desert Willow Golf Resort
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ACKNOWLEDGEMENTS
The preparation of this report is attributable to the efficient and dedicated staff of the Finance Department who are individually recognized on the title page. The Mayor and the City Council are credited for their support in planning and conducting the operations of the City in a prudent, responsible and progressive manner. Recognition is also given to all employees of the City of Palm Desert who continue to serve our community with commitment and dedication throughout the year. Our greatest appreciation goes to you, the residents of Palm Desert, for your continued support, input, and guidance in helping us serve you better, thus preserving our city’s quality of life and reputation for innovation and leadership.

Respectfully submitted,
L. Todd Hileman Veronica Chavez
City Manager Director of Finance
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CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2024
City Council - Manager Form of Government

CITY COUNCIL

KARINA QUINTANILLA
Mayor
JAN C. HARNIK
Mayor Pro-Tempore

KATHLEEN KELLY
Council Member

GINA NESTANDE
Council Member

EVAN TRUBEE
Council Member

CITY ADMINISTRATION

TODD HILEMAN
City Manager
Israh Shah Veronica Chavez
City Attorney - Best, Best & Krieger, LLP Director of Finance/City Treasurer

PALM DESERT HOUSING AUTHORITY

TODD HILEMAN
Executive Director

SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY

TODD HILEMAN
Executive Director
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514
City Manager Executive
Assistant
Public Affairs
Manager
Management
Analyst I/II
(Environmental
)
HR Manager
Director of
Economic
Development
Records
Coordinator
Management
Analyst I/II (2)
Deputy Clerk
I/ II
Management
Analyst I/II
(Art)
Assistant City
Clerk
Admin
Assistant I/II
City Clerk
Senior Deputy
Clerk
Senior Admin
Assistant
Human
Resources
Analyst I/II (2)
Office
Assistant I/ II
Communicatio
ns Analyst I/II
(2)
Marketing
Specialist
Special Events
Coordinator
Admin
Assistant I/II
Deputy
Director of
Economic
Development
Admin Assistant
Special
Programs
I/II
Housing
Manager
Management
Analyst I/II
Housing
Program Tech
Director of
Finance
Deputy
Director of
Finance
Deputy
Director of
Finance
Finance
Supervisor
Senior
Contracts and
Grants Analyst
Purchasing
Coordinator
Admin
Assistant I/II
Senior
Network
Engineer
Accountant (2)
Information
Systems
Manager
Senior
Information
Systems
Admin
Senior GIS
Admin
Biz Systems
Enterprise
Accounting
Technician
Accounting
Technician (5)
Admin
Assistant I/II
Management
Analyst I
Assistant City
Manager
Receptionist
Social Services
Coordinator
Management
Analyst I/II
City Engineer Director of
Public Works
Director of
Development
Services
Director of
Capital
Projects

CITY OF PALM DESERT ORGANIZATION CHART
viii
515
Director of
Public Works
Deputy
Director of
Public Works
Assistant City
Manager
Social Services
Coordinator
Management
Analyst I/II
Director of
Development
Services Deputy
Director of
Development
Services
Senior Admin
Assistant
Management
Analyst I/II
Executive
Assistant
Permit Center
Supervior
Code
Compliance
Office I/II (5)
Permit
Specialist I/II
(4)
Principal
Planner
Chief Building
Official
Code
Compliance
Supervisor
Senior
Building
Inspector
Office
Assistant I/II
Building
Inspector I/II
(3)
Office
Assistant I/II
Senior Planner
Associate
Planner I/II
Assistant
Planner I/II
Chief
Inspector
Land
Development
Tech
Director of
Capital
Projects
Admin
Assistant I/II
Capital
Projects
Manager (2)
PW Inspector
(3)
Senior Project
Manager
Project
Manager (2)
Transportation
Manager
Business
Operations
Manager
Project
Manager
Senior
Managment
Analyst
Admin
Assistant I/II
(2)
Traffic Signal
Specialist
Traffic Signal
Tech I/II (2)
Street
Maintenance
Supervisor
Community
Services
Manager
Admin
Assistant I/II
Office
Assistant I/II
Senior
Maintenance
Worker
Maintenance
Worker I/II/III
(10)
Supervising
Landscape
Supervisor
Landscape
Inspector (3)
Project
Manager
Senior
Facilities
Specialist
Project
Technician
Facilities
Specialist
City Engineer

CITY OF PALM DESERT ORGANIZATION CHART
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518
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 519
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (“supplementary information”) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 27, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Irvine, California
January 27, 2025
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CITY OF PALM DESERT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Palm Desert’s financial performance for the fiscal year ended June 30, 2024, provides: a comparison of current year to prior year ending results based on the government-wide financial statements; an analysis of the City’s overall financial position and results of operations to assist users in evaluating the City’s financial position; a discussion of significant changes that occurred in the funds; and significant budget variances. In addition, it describes the activities during the year for capital assets and long-term debt. We end our discussion and analysis with a description of known facts, decisions, and conditions that are expected to have a significant effect on the financial position or results of operations. Please read it in conjunction with the transmittal letter and the City’s financial statements.

FINANCIAL HIGHLIGHTS
• The City’s total assets and deferred outflows exceeded its liabilities and deferred inflows by $812.65 million (net position).
• The City’s governmental activities net position decreased by $12.16 million, and the net position of the business-type activities decreased by $0.27 million.
• During the year, the City’s revenues were $155.47 million and expenses were $167.64 million in its governmental activities, compared to fiscal year 2023, where revenues were $131.59 million and expenses were $120.10 million.
• In the City’s business-type activities, expenses were $14.33 million, $1.85 million more than the $12.48 million in prior year expenses. Revenues generated from golf course green fees, merchandise sales, rental income and other revenues increased by $0.13 million compared to prior year, and Parkview Office Complex revenues for business-type activities revenues decreased $0.25 million from prior year. • The City’s governmental activities program revenues and general revenues increased by $23.88 million, while program expenses increased by $47.54 million.
• Business-type activities revenues decreased $ 0.37 million, from $14.43 million to $14.06 million. Expenses increased from $12.48 million to $14.33 million.
• The City kept its General Fund expenditures within spending limits by $10.23 million. The revenues available for expenditures exceeded budget by $4.87 million.

USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and Statement of Activities (on pages 17, 18 and 19) provide information about the activities of the City as a whole and present a long-term view of the City’s finances. The fund financial statements start on page 20. For governmental activities, these fund statements tell how these services were financed in the short term as well as what remains for future spending. The fund financial statements also report the City’s operation in more detail than the government-wide statements by providing information about the City’s most significant funds and other funds. The remaining fiduciary fund statement provides financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.

REPORTING THE CITY AS A WHOLE
The Statement of Net Position and the Statement of Activities:

Our analysis of the City as a whole begins on page 17. One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that answers this question. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. 5 522
These two statements report the City’s net position and changes in them. Net position is the difference between total assets and deferred outflows of resources less liabilities and deferred inflows, which is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position are an indication of whether its financial health is improving or deteriorating. Other non-financial factors should be considered, however, such as changes in the economy that could cause a decrease in consumer spending.

In the Statement of Net Position and the Statement of Activities, we separate City activities as follows:

Governmental activities – Most of the City’s basic services are reported in this category, including general administration (city manager, city clerk, finance, etc.), housing and redevelopment, public safety (police and fire protection), public works, parks, recreation and culture departments. Property taxes, sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and other revenues finance these activities.

Business-type activities – The City charges customers to cover all or most of the cost of certain services it provides.

The City’s municipal golf course, Desert Willow, and the City’s Parkview Office Complex activities are reported in this category.

Component unit activities – The City includes one separate legal entity in its report – the Palm Desert Recreational Facilities Corporation. Although legally separate, this “component unit” is important because the City is financially accountable for it.

REPORTING THE CITY’S MOST SIGNIFICANT FUNDS
Fund Financial Statements:

The fund financial statements provide detailed information about the most significant funds and other funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management established many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other resources. The City has three types of funds: governmental, proprietary and fiduciary.

Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences of results in the Governmental Fund financial statements to those in the Government-wide financial statements are explained in a reconciliation following each Governmental Fund financial statement.

Proprietary funds – When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The City’s enterprise funds are the same as the businesstype activities we report in the government-wide statements, but provide more detail and information such as a statement of cash flows.

Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Palm Desert operations. The accounting used for fiduciary funds is much like that used for proprietary funds.
6 523

THE CITY AS TRUSTEE
Reporting the City’s Fiduciary Responsibilities:

The City is the trustee, or fiduciary, for the Successor Agency to the Palm Desert Redevelopment Agency’s (Successor Agency) private-purpose trust fund and for certain custodial funds held on behalf of developers and its employees’ retiree service stipend fund. The City’s fiduciary activities are reported in separate Statement of Fiduciary Net Position, Statement of Changes in Fiduciary Net Position, Combining Statement of Statement of Assets and Liabilities-All Custodial Funds, and Combining Statement of Changes in Fiduciary Net Position-All Custodial Funds. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

THE CITY AS A WHOLE
During the fiscal year ending June 30, 2024, the City’s combined net position decreased $12.43 million from $825.09 million to $812.65 million. A separate review of the net change in the governmental and business-type activities is provided for the reader. Our analysis focuses on the net position (Table 1) and changes in net position (Table 2) of the City’s governmental and business-type activities.
7 524
2024 2023 2024 2023 2024 2023
Current and restricted assets 401.93 $ 397.71$ $ 11.31$ 415.20 13.27 $ 402.99$ Noncurrent assets
Receivables 3.44 3.26 5.19 5.89 8.44 15.36
Capital assets 422.26 412.61 68.70 69.55 481.31 491.81
TOTAL ASSETS 823.41 817.79 87.16 86.75 904.96 910.16
Deferred outflows of resources 18.10 19.41 - - 19.41 18.10 Current liabilities 44.68 45.70 1.54 1.69 46.22 47.39
Noncurrent liabilities 55.55 45.28 1.54 0.23 57.09 45.51 TOTAL LIABILITIES 100.23 90.98 3.08 1.92 103.31 92.90
Deferred inflows of resources 3.83 5.22 4.58 5.05 8.40 10.27 Net position:

Net investment in capital assets 401.72 416.68 68.47 69.24 470.19 485.92 Restricted 172.53 175.67 - - 175.67 172.53
Unrestricted 156.10 155.76 11.04 10.54 166.79 166.64
TOTAL NET POSITION 733.15 $ 745.31$ $ 79.78$ 812.65 79.51 $ 825.09$ Activities Activities Total
TABLE 1

NET POSITION
(IN MILLIONS)
As of June 30, 2024 and 2023
Governmental Business-Type
8 525
The City’s governmental activities net position decreased $12.16 million. The City’s net position is made up of three components: Net investment in capital assets; restricted net position; and unrestricted net position. For governmental activities, unrestricted net position, which represents the part of net position that can be used to finance day-to-day operations, accounted for 21 percent of the overall total net position. Unrestricted net position decreased $0.34 million from $156.10 million in 2023 to $155.76 million in 2024, and restricted net position increased from $172.53 million to $175.67 million, an increase of $3.14 million. The increase in unrestricted net position was primarily driven by increases in program revenues, investment earnings and transient occupancy tax, and the City’s investment portfolio took advantage of high interest rates in both short-term savings vehicles and longer-term investments. Total charges for services increased from $38.82 million in 2023 compared to $39.35 million in 2024, an increase of $0.53 million; and transient occupancy tax decreased from $23.96 million in 2023 to $23.02 million in 2024, representing a decrease of $0.94 million. Investment earnings saw an increase of $13.93 million from 2023 to 2024 and interest rates remained high through the end of fiscal year 2024.

The increase of $3.14 million in restricted net position was due to restricted special projects increasing by $34.74 million from the prior year, while restricted capital projects funds decreased by $31.82 million. During the year, construction on major projects continued; including the completion of the Desert Willow parking lot, Sec 29 Retention Basin, and Fred Waring Street rehabilitation. Investment in capital assets in governmental funds decreased by $14.56 million, slightly over 3 percent of the total balance.

The City’s governmental activities total assets and deferred outflow of resources combined decreased $4.31 million from $841.51 million in 2023 to $837.20 million in 2024. The majority of the decrease to total assets were in capital assets, which decreased by $9.65 million over the prior year. This decrease was also offset by increases to cash and investments by $4.22 million and deferred outflows of resources by $1.31 million due to the OPEB pension discount rate change.

Total governmental fund liabilities and deferred inflows combined increased by $7.86 million from $96.2 million in 2023 to $104.10 million in 2024. An increase of $9.25 million in total liabilities, mainly attributable to a pension liability increase of $5.32 million, an OPEB liability increase of $1.03 million.

The net position of the business-type activities recognized a decrease of $0.27 million, from $79.78 million during 2023 to $79.51 million during 2024.

Total assets in the business-type activities increased by $0.41 million from $86.75 million in 2023 to $87.16 million in 2024.
9 526
2024 2023 2024 2023 2024 2023

REVENUES
Program Revenues:

Charges for services 39.35$ 38.83$ $ 13.42 $ 13.63 $ 52.77 52.46$ Operating grants and contributions 9.90 13.04 - - 9.90 13.04 Capital grants and contributions 17.31 4.67 0.19 0.09 17.50 4.76 General Revenues:

Property taxes 15.33 13.89 - - 15.33 13.89
Transient occupancy tax 23.02 23.96 - - 23.02 23.96
Sales tax 25.39 26.37 - - 25.39 26.37
Other taxes 3.78 3.58 - - 3.78 3.58
Investment earnings 19.10 5.17 0.74 0.45 19.84 5.62
Other revenues 2.00 2.08 - 0.26 2.00 2.34
Transfers 0.29 - (0.29) - - -
TOTAL REVENUES 155.47 131.59 14.06 14.43 169.53 146.02

EXPENSES
General Government 46.41 26.19 - - 46.41 26.19
Housing and redevelopment 27.87 13.25 - - 27.87 13.25
Public safety 43.64 40.76 - - 43.64 40.76
Parks, recreation and culture 20.32 19.11 - - 20.32 19.11 Public works 28.65 20.65 - - 28.65 20.65
Library 0.61 - - - 0.61 -
Interest on long-term debt 0.15 0.15 - - 0.15 0.15
Golf Course - Desert Willow - - 12.97 11.07 12.97 11.07 Office Complex - Parkview - - 1.36 1.41 1.36 1.41
TOTAL EXPENSES 167.64 120.10 14.33 12.48 181.97 132.58
INCREASE (DECREASE) IN NET POSITION (12.17) 11.49 (0.27) 1.95 (12.44) 13.44 BEGINNING NET POSITION 745.31 733.80 79.78 77.83 825.09 811.63 RESTATEMENT OF NET POSITION 0.02 - - - - 0.02
ENDING NET POSITION 733.14$ 745.31$ $ 79.51 $ 812.65$ 79.78 825.09$ Activities Activities Total
TABLE 2

CHANGES IN NET POSITION
(IN MILLIONS)
As of June 30, 2024 and 2023
Governmental Business-Type
10 527
Governmental Activities
Total revenue increased by $23.88 million from $131.59 million to $155.47 million. Factors that contributed to the changes in revenues are as follows:
• Transient occupancy tax decreased from $23.96 million in 2023 to $23.02 million in 2024, a slight decrease of $0.94 million.
• The City’s sales tax decreased by $0.98 million from $26.37 million in 2023 to $25.39 million in 2024. Despite the year-over-year decrease, sales tax receipts still exceeded budget expectations by about $0.39 million for 2024.
• In 2024, the City’s investment earnings were $13.93 million more than the prior year, an increase from $5.17 million in 2023 to $19.10 million in 2024, which was strongly correlated to the high interest rate environment. The City continued to utilize multiple investment vehicles throughout the year, taking advantage of high interest rates available in short-term investment pools such as the Local Agency Investment Fund (LAIF), and the California Asset Management Program (CAMP), along with the reinvestment of maturing investments into long-term investment products.
• Charges for services saw a slight increase from $38.83 million in 2023 to $39.35 million in 2024. • Operating contributions and grants recognized a decrease of $3.14 million. Capital contributions and grants increased by $12.64 million, from $4.67 million in 2023 to $17.31 million in 2024. 11 528
Total governmental expenses increased from $120.10 million in 2023 to $167.64 million in 2024, an increase of $47.54 million. Factors that contributed to the changes in expenditures are as follows:
• Expenditures in housing and redevelopment increased from $13.25 million in 2023 to $27.87 million in 2024, an increase of $14.62 million.
• Public safety expenditures increased by $2.88 million, from $40.76 million in 2023 to $43.64 million in 2024, mainly related to increases in fire protection costs related to the adoption of new memorandums of understanding for fire protection staff.
• Parks, recreation, and culture saw increases in expenditures of $1.21 million, from $19.11 million in 2023 to $20.32 million in 2024.

The following schedule represents the net cost of providing services:

Business-type Activities
In the business-type activities, total revenues decreased by 2.5 percent from $14.43 million to $14.06 million, a $0.37 million decrease.

The Parkview Office Complex revenues decreased slightly from $1.47 million in 2023 to $1.22 million in 2024 due to increased vacancy.

Operating expenses for business-type activities increased by $1.85 million from $12.48 million to $14.33 million.

The majority of the increase is related to the growth in operations at Desert Golf resort which recognized a $1.80 million increase in overall expenditures.
2024 2023
General Government $ (40.64) $ (21.01)
Housing and Redevelopment (8.65) (1.76)
Public Safety (21.52) (19.18)
Parks, Recreation and Culture (14.70) (14.39)
Public Works (18.82) (7.07)
Library 3.39 -
Interest on Long-Term Debt (0.15) (0.15)
Total $ (101.09) $ (63.56)
Governmental Activities
Net (Expense) Revenue
(In Millions)
0%3%
23%
11%
30%
33%
2023 Governmental
Activities Net (Expense)
Revenue
12 529
THE CITY’S FUNDS
On page 20, the governmental funds balance sheet is shown. The combined fund balance of $346.30 million increased $4.71 million from $341.59 million. This total includes the General Fund balance of $126.35 million, which increased by $5.44 million from the prior year. The City’s General Fund balance has a non-spendable balance of $2.89 million, committed balance of $52.31 million, assigned balance of $18.70 million, and $52.46 million of unassigned fund balance. The increase in the General Fund’s balance was due to increases in taxes collected, intergovernmental revenues and investment earnings. Other major fund balance changes are noted below:
• The Prop A Fire Tax Special Revenue Fund: The fund balance increased by $6.62 million due to staffing vacancies that were not fully filled during the period as well as labor cost savings from more efficient staffing levels and coverage.
• The Housing Asset Fund: The fund had an increase of $1.93 million, mainly due to significant increases in investment earnings during the fiscal year.
• The Housing Authority Fund: The fund balance had a slight decrease of $2.20 million. • Capital Project Fund: The fund balance decreased $4.00 million from $51.21 million to $47.23 million mainly due to increased expenditures and capital outlay in 2024. • The remaining increase of $3.14 million is spread across the general fund and multiple non-major funds.

More detailed information about the combined fund balance reserves is presented in Note 16 to the financial statements.

General Fund Budgetary Highlights
Based upon recommendations from the staff, the City Council revised the budget several times during the year.

Adjustments were made on a monthly basis as City staff requested additional appropriations to cover the cost of projects that either had change orders for additional work, or were underestimated. At mid-year, some adjustments were also requested to better meet departmental demands and adjust for any revenue fluctuations. At year-end, budgets were adjusted for unanticipated approved expenditures. All amendments that either increase or decrease appropriations are approved by the City Council.

For the City’s General Fund, the actual ending revenues of $84.45 million were $4.87 million more than the final budgeted revenues of $79.58 million. Sales and transient occupancy taxes continue to be the top two revenue generators for the City, totaling $48.40 million or 68.74 percent of the total General Fund actual revenues. The original budget for expenditures was $75.35 million compared to the final budget of $89.71 million, an increase of $14.36 million. The City increase in the final budget was related to better-than-expected increases in both building interest earnings and sales tax revenues.

The General Fund actual ending expenditures of $79.49 million were $10.22 million less than the final budgeted expenses of $89.71 million. There were changes in the original budget compared to the final budget during the year.

The original expenditure budget was $75.35 million compared to the final budget of $89.71 million, a $14.36 million increase. During the year, the following represent the major changes between the original budget and the final budget: the City Manager, General Services, and Information Technology, budgets were increased to accommodate new staff and expanded city services.
13 530

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2024, the City had $481.32 million invested in a broad range of capital assets including land, streets, bridges, drainage systems, traffic lights, parks, buildings, artwork, vehicles, golf courses and equipment (See Table 3). This amount represents a net decrease (including additions and deductions) of $10.50 million over the prior year, due mainly to depreciation.
2024 2023 2024 2023 2024 2023
Land 82.70 $ 82.29$ 53.31$ 53.31$ 136.01 $ 135.60$
Construction-in-progress 10.12 11.22 - - 11.22 10.12
Buildings and improvements 77.10 82.59 - - 77.10 82.59
other than buildings - 11.71 12.51 - 11.71 12.51
Machinery and equipment 3.53 3.11 3.69 3.74 6.79 7.27
Infrastructure & right-of-way 236.06 241.19 - - 236.06 241.19 Lease assets 2.13 1.90 - - 1.90 2.13
Subscription assets 0.53 0.41 - - 0.53 0.41
TOTALS 412.61$ 422.26$ $ 69.56$ 481.32 68.71 $ 491.82$
Activities Activities Total
TABLE 3

CAPITAL ASSETS AT YEAR-END
(NET OF DEPRECIATION, IN MILLIONS)
For the years ended June 30, 2024 and 2023
Governmental Business-Type
14 531
This year’s major additions included (in millions):

The City’s fiscal year 2025 adopted capital budget calls for an additional $72.43 million to be spent, plus continuing capital projects of $37.91 million from prior year, with the majority being spent on streets, infrastructure, buildings, parks, and golf course improvements. Projects will be funded with existing bond proceeds or funds that have been designated by an outside party for specific use. The City has adopted a bold capital improvement program to make significant capital improvements throughout the jurisdiction, and to catch up on projects that may have been deferred in the past. More detailed information about the City’s capital assets is presented in Note 1h and Note 5 to the financial statements.

Debt
At year-end, the City’s governmental activities had $55.56 million in bonds, claims, compensated absences, and pension liability versus $46.57 million last year, an increase of $8.98 million as shown in Table 4. The major increase was the City’s Net Pension liability which went from $38.68 million in 2023 to $44.00 million in 2024, an increase of $5.32 million, related to a change in the discount rate.

The City was able to meet its current year debt obligations in a timely manner. Bonds that were issued in prior years have been used to finance various capital projects.

Buildings $ -
Improvements Other Than Buildings -
Equipment Purchases 0.03
Infrastructure -
Land/Right of Way 0.53
Subscription Assets 0.47
$ 1.03
2024 2023 2024 2023 2024 2023
Compensated absences $ 2.60$ 2.67 -$ -$ 2.67$ 2.60$
Lease liability 2.20 1.98 - - 1.98 2.20
Financed purchase - 0.23 0.32 - 0.23 0.32
SBITA liability 0.40 0.28 - - 0.28 0.40
Claims and judgments payable 0.68 3.68 - - 3.68 0.68
Special assesments debt with
government commitment 0.98 1.03 - - 0.98 1.03
Limited obligation improvement
bonds 0.13 0.09 - - 0.09 0.13
OPEB liability (net) 1.88 0.86 - - 1.88 0.86
Pension liability (net) 38.68 44.00 - - 44.00 38.68
TOTALS $ 46.57$ 55.56 0.23$ 0.32$ 55.79$ 46.89$
Activities Activities Total
TABLE 4

OUTSTANDING DEBT AT YEAR-END
(IN MILLIONS)
For the years ended June 30, 2024 and 2023
Governmental Business-Type
15 532
The City’s business-type activities debt decreased $0.09 million from $0.32 million to $0.23 million. Debt in the business-type activities is for amounts due back to the City for the financing of capital equipment. The City’s golf course used a city-funded financing option as an alternative to purchasing golf carts and maintenance equipment from cash flows derived through day-to-day operations. The City’s business-type activities were able to meet their current year debt obligation in a timely manner. More detailed information about the City’s long-term liabilities is presented in Note 6 through Note 10 to the financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing the budget for fiscal year 2025, management and the City Council considered many ongoing economic impacts such as inflation, supply chain constraints, and labor issues associated with contracts. Keeping the well-being and safety of residents, visitors, and businesses as the highest priority, the City Council has maintained funding to sustain current service levels and supported efforts to ensure that much of the deferred maintenance owing to the pandemic is now being addressed. In addition, the City Council established strategic goals and objectives before the creation of the annual budget, which were given the highest priority during the budget development process. The City Council’s strategic goals and objectives include both capital and monetary investments to support the City’s economic stability.

Most notably, the fiscal year 2025 budget includes a robust Capital Improvement Plan. Additionally, for fiscal year 2025, the City has transitioned the local library from a county-run facility to a municipal library with support from a new Library Services department. These considerations, among others, have been factored into the fiscal year 2025 budget to date.

The City’s 2024-2025 Financial Plan can be found on the City’s website at www.cityofpalmdesert.org.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our residents, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and serves as a resource to demonstrate the stewardship and accountability for the public monies it receives.

If you have questions about this report or need additional financial information, please contact the Finance Department at (760) 346-0611 or [email protected]. 16 533

CITY OF PALM DESERT, CALIFORNIA
Statement of Net Position
Component
Unit
Palm Desert
Recreational
Governmental
Activities
Business-Type
Activities Total
Facilities
Corporation
ASSETS
Current assets:

Cash and investments $ 14,604,475 292,283,474 $ 306,887,949 $ $ 907,655 Receivables:

Accounts 287,169 3,940,471 4,227,640 4,000
Assessments 1,017,154 1,017,154 - -
Notes - 980,000 980,000 -
Accrued interest - 968,456 968,456 -
Loans - 19,404,764 19,404,764 -
Leases 919,097 182,375 1,101,472 -
Internal balances (2,899,202) 2,899,202 - -
Due from other governments 9,400,256 9,400,256 - 1,305,037 Deposits - 20,000 20,000 -
Prepaid costs 59,913 631,220 691,133 11,452
Inventories 301,682 13,710 315,392 43,797
Land held for resale 61,516 - 61,516 -
Restricted assets:

Cash with fiscal agent - 70,124,025 70,124,025 -
Noncurrent assets:

Due from component unit 1,437,644 420,000 1,857,644 -
Leases receivable 3,750,307 2,836,447 6,586,754 -
Capital assets (not being depreciated) 53,304,965 215,176,109 268,481,074 - Capital assets (net of accumulated depreciation/amortization) 15,397,456 197,432,486 212,829,942 2,422,902 Total Assets 87,163,506 817,791,665 904,955,171 4,694,843

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 14,397,120 14,397,120 - -
OPEB-related - 5,013,842 5,013,842 -
Total Deferred Outflows of Resources 19,410,962 19,410,962 - -

LIABILITIES
Accounts payable 24,426,757 957,306 25,384,063 49,758
Accrued liabilities 266,561 683,183 949,744 114,787
Accrued interest - 56,038 56,038 3,518
Unearned revenue 15,589,126 290,871 15,879,997 193,389
Deposits payable 26,590 3,923,141 3,949,731 -
Noncurrent liabilities:

Due to component unit 1,305,037 - 1,305,037 -
Financed purchases 88,397 - 88,397 -
Due within one year: bonds, notes, leases, SBITA, claims, and compensated absences 2,151,463 2,151,463 - 54,211
Due in more than one year:

Due to primary government - - - 1,857,644
Net pension liability 43,997,360 43,997,360 - -
Net OPEB liability - 1,881,920 1,881,920 -
Financed purchases 144,555 - 144,555 -
Bonds, notes, leases, SBITA, claims, and
compensated absences 7,521,899 - 7,521,899 2,421,536
Total Liabilities 3,079,317 100,230,887 103,310,204 4,694,843

DEFERRED INFLOWS OF RESOURCES
Pension-related - 664,691 664,691 -
OPEB-related - 189,386 189,386 -
Lease-related 4,578,821 2,971,474 7,550,295 -
Total Deferred Inflows of Resources 4,578,821 3,825,551 8,404,372 -

NET POSITION
Net investment in capital assets 68,469,469 401,724,234 470,193,703 - Restricted:

Capital projects - 47,432,023 47,432,023 -
Special projects - 128,234,012 128,234,012 -
Unrestricted 11,035,899 155,755,920 166,791,819 -
Total Net Position $ 733,146,189 $ 79,505,368 $ 812,651,557 $ - June 30, 2024
Primary Government
See accompaning notes to financial statements.
17 534

CITY OF PALM DESERT, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2024
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:

Primary government:

Governmental activities:

General government $ 46,406,293 $ 2,889,464 $ 1,084,357 $ 1,789,418 Public safety 43,639,884 20,828,172 1,129,323 166,938
Housing and redevelopment 27,871,773 9,193,031 - 10,031,800 Parks, recreation and culture 20,317,786 3,578,805 1,212,443 831,005 Public works 28,646,485 2,860,351 6,476,073 491,645
Library 606,561 - - 4,000,000
Interest on long-term debt 153,203 - - -
Total Governmental Activities 167,641,985 39,349,823 9,902,196 17,310,806 Business-type activities:

Desert Willow Golf Course 12,973,341 12,200,236 - 189,931 Parkview Office Complex 1,362,313 1,220,790 - -
Total Business-Type Activities 14,335,654 13,421,026 189,931 - Total Primary Government $ 181,977,639 $ 52,770,849 $ 9,902,196 $ 17,500,737 Component Units:

Palm Desert Recreational Facilities Corp. 4,812,702 $ 4,570,976 $ 1,305,037 $ - $ General Revenues and Transfers:

General revenues:

Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Use of money and property
Other
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position-Beginning
Net Position-Ending
Program Revenues
See accompaning notes to financial statements.
18 535
Palm Desert
Recreational
Facilities
Corporation
Unit
Governmental Business-Type
Activities Activities Total
$ - (40,643,054) $ (40,643,054) $ $ -
- (21,515,451) (21,515,451) -
- (8,646,942) (8,646,942) -
- (14,695,533) (14,695,533) -
- (18,818,416) (18,818,416) -
- 3,393,439 3,393,439 -
- (153,203) (153,203) -
- (101,079,160) (101,079,160) -
(583,174) - (583,174) -
(141,523) - (141,523) -
(724,697) - (724,697) -
(724,697) (101,079,160) (101,803,857) -
- - - 1,063,311
- 15,326,607 15,326,607 -
- 25,391,092 25,391,092 -
- 23,019,911 23,019,911 -
- 3,727,659 3,727,659 -
- 56,029 56,029 -
19,097,000 743,269 19,840,269 -
- 1,995,008 1,995,008 -
294,105 (294,105) - -
449,164 88,907,411 89,356,575 -
(12,171,749) (275,533) (12,447,282) 1,063,311
745,317,938 79,780,901 825,098,839 (1,063,311)
$ 79,505,368 733,146,189 $ 812,651,557 $ - $
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See accompaning notes to financial statements.
19 536

CITY OF PALM DESERT, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
General
ASSETS
Cash and investments $ 22,516,225 123,775,600 $ 33,285,834 $ $ 19,013,312 Receivables:

Accounts 2,116,538 760,791 198,926 387,939
Assessments - - - -
Notes 980,000 - - -
Interest 614,525 311,935 - -
Loans 14,978 18,413,813 - -
Leases Receivable 3,018,822 - - -
Prepaid Cost - 583,470 660 -
Deposits - - - -
Due from other governments 1,753,914 6,001,905 - -
Due from other funds - 3,898,553 - -
Advances to other funds - 1,310,000 - -
Inventories - - - -
Property held for resale - - 61,516 -
Due from component unit - 420,000 - -
Restricted assets:

Cash and investments with fiscal agent - - - 1,964,076
Total Assets $ 142,734,391 $ 25,030,930 $ 52,272,684 $ 21,365,327

LIABILITIES
Accounts payable $ 2,677,203 8,346,583 $ 19,035 $ $ 1,448,867 Accrued liabilities - 532,171 - 84,825
Unearned revenues - - - 25,594
Deposits payable - 3,306,556 - 612,805
Due to other funds - - - 2,095,518
Advances from other funds - - - -
Total Liabilities 12,185,310 2,677,203 19,035 4,267,609

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 1,223,954 311,935 -
Leases - 2,971,474 - -
Total Deferred Inflows of Resources 4,195,428 311,935 - -

FUND BALANCES (DEFICITS)
Nonspendable - 2,888,448 660 -
Restricted 22,353,727 - 51,941,054 5,222,230
Committed - 52,308,943 - 11,875,488
Assigned - 18,698,560 - -
Unassigned - 52,457,702 - -
Total Fund Balances 126,353,653 22,353,727 51,941,714 17,097,718 Total Liabilities, Deferred Inflows of Resources,
and Fund Balances $ 142,734,391 $ 25,030,930 $ 52,272,684 $ 21,365,327 Special Revenue Funds
Prop A Fire
Tax
Housing Asset
Fund
Housing
Authority
See accompanying notes to financial statements.
20 537

CITY OF PALM DESERT, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables:

Accounts
Assessments
Notes
Interest
Loans
Leases Receivable
Prepaid Cost
Deposits
Due from other governments
Due from other funds
Advances to other funds
Inventories
Property held for resale
Due from component unit
Restricted assets:

Cash and investments with fiscal agent
Total Assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Leases
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances
Capital
Projects Funds
Total Total
Nonmajor Governmental
Funds Funds
$ 85,245,171 1,776 $ 283,837,918 $
476,277 - 3,940,471
1,017,154 - 1,017,154
- - 980,000
41,996 - 968,456
975,973 - 19,404,764
- - 3,018,822
47,090 - 631,220
20,000 - 20,000
1,644,437 - 9,400,256
- - 3,898,553
2,399,202 - 3,709,202
13,710 - 13,710
- - 61,516
- - 420,000
2,671,678 65,488,271 70,124,025
$ 94,552,688 65,490,047 $ 401,446,067 $
$ 10,130,544 1,781,374 $ 24,403,606 $
66,187 - 683,183
662,378 14,901,154 15,589,126
3,780 - 3,923,141
228,693 1,574,342 3,898,553
810,000 - 810,000
11,901,582 18,256,870 49,307,609
1,335,410 - 2,871,299
- - 2,971,474
1,335,410 - 5,842,773
80,800 - 2,969,908
48,915,847 47,233,177 175,666,035
8,398,771 - 72,583,202
24,365,783 - 43,064,343
(445,505) - 52,012,197
81,315,696 47,233,177 346,295,685
$ 94,552,688 65,490,047 $ 401,446,067 $
Restricted
Capital Project
Fund
See accompanying notes to financial statements.
21 538
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
22 539
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds $ 346,295,685
409,727,420
Deferred outflows-pension related 14,397,120 $
Deferred outflows-OPEB related 5,013,842
Deferred inflows-pension related (664,691)
Deferred inflows-OPEB related (189,386)
Total deferred outflows and inflows related to postemployment benefits 18,556,885 Long-term receivables 2,871,299
Total other long-term assets 2,871,299
8,630,893
Bonds payable (1,068,000)
Claims and judgments (3,675,340)
Leases and SBITA (2,257,335)
Accrued interest payable on long-term debt (56,038)
Net pension liability (43,997,360)
Net OPEB liability (1,881,920)
Total long-term liabilities (52,935,993)
Net Position of Governmental Activities $ 733,146,189
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

CITY OF PALM DESERT, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.

Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.

Internal service funds provide services to other funds on a cost-reimbursement basis.

The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.

See accompaning notes to financial statements.
23 540

CITY OF PALM DESERT, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024
General

REVENUES
Taxes $ 11,402,490 70,410,983 $ - $ $ -
Special Assessments collected 2,154,150 - - -
Licenses and permits - 1,596,381 - -
Intergovernmental revenues 1,437,276 1,682,441 - -
Rental Income - 136,047 - 9,158,677
Charges for services 4,158,057 1,874,444 198,926 -
Investment earnings 869,365 7,031,574 1,956,111 989,378 Fines and forfeitures - 104,423 - -
Capital contributions - - - -
Miscellaneous - 622,101 34,354 -
Total Revenues 83,458,394 20,021,338 2,189,391 10,148,055

EXPENDITURES
Current:

General government 31,942,721 - - -
Public safety 24,181,750 17,377,791 - -
Parks, recreation and culture 5,711,369 - - -
Public works 6,023,503 - - -
Housing - 157,355 - 11,854,770
Library - - - -
Capital outlay 628,451 720,738 105,203 -
Debt service: - - - -
Principal Retirement 492,854 - - -
Interest Expense and Fiscal Charges 43,191 - - -
Total Expenditures 69,116,126 18,006,242 262,558 11,854,770 Excess (Deficiency) of Revenues
Over (Under) Expenditures 14,342,268 2,015,096 1,926,833 (1,706,715)

OTHER FINANCING SOURCES (USES)
Transfers In 4,600,000 396,806 - -
Transfers Out - (9,480,177) - (452,997)
Proceeds for Sale of Capital Assets - 594,610 - -
Contribution to other government - (890,129) - -
Proceeds from subscriptions - 473,763 - -
Total Other Financing Sources (Uses) (8,905,127) 4,600,000 - (452,997) Net Change in Fund Balances 5,437,141 6,615,096 1,926,833 (2,159,712) Fund Balances-Beginning 15,738,631 120,916,512 50,014,881 19,257,430 Fund Balances-Ending $ 126,353,653 $ 22,353,727 $ 51,941,714 $ 17,097,718 Prop A Fire
Tax
Housing Asset
Fund
Housing
Authority
Special Revenue Funds
See accompanying notes to financial statements.
24 541

CITY OF PALM DESERT, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Special Assessments collected
Licenses and permits
Intergovernmental revenues
Rental Income
Charges for services
Investment earnings
Fines and forfeitures
Capital contributions
Miscellaneous
Total Revenues

EXPENDITURES
Current:

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

Principal Retirement
Interest Expense and Fiscal Charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Proceeds for Sale of Capital Assets
Contribution to other government
Proceeds from subscriptions
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances-Beginning
Fund Balances-Ending
Total Total
Nonmajor Governmental
Funds Funds
$ 5,525,864 - $ 87,339,337 $
1,543,516 - 3,697,666
394,251 - 1,990,632
8,251,411 - 11,371,128
168,582 - 9,463,306
4,053,210 - 10,284,637
4,482,976 3,178,677 18,508,081
1,729 - 106,152
10,000,000 - 10,000,000
1,299,493 - 1,955,948
35,721,032 3,178,677 154,716,887
2,739,106 1,540 34,683,367
237,127 1,653,302 43,449,970
13,201,203 - 18,912,572
7,902,414 176,739 14,102,656
1,078,569 - 13,090,694
606,561 - 606,561
19,530,903 3,524,809 24,510,104
-
90,000 - 582,854
110,012 - 153,203
45,495,895 5,356,390 150,091,981
(9,774,863) (2,177,713) 4,624,906
10,060,774 - 15,057,580
(3,422,488) (1,800,000) (15,155,662)
- - 594,610
- - (890,129)
- - 473,763
6,638,286 (1,800,000) 80,162
(3,136,577) (3,977,713) 4,705,068
84,452,273 51,210,890 341,590,617
$ 81,315,696 47,233,177 $ 346,295,685 $
Capital
Projects Funds
Restricted
Capital Project
Fund
See accompanying notes to financial statements.
25 542
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
26 543
Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024
Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: $ 4,705,068 Capital outlay $ 2,197,596
Loss on disposal and transfer of capital assets (820,345) Depreciation/amortization expense (11,297,964)
Total adjustment (9,920,713)
Earned but unavailable grant revenues (16,125)
Total adjustment (16,125)
Net change in claims and judgments for the current period (2,995 ,459) Subscriptions and lease payments 339,374
Principal payments 90,000
Total adjustment (2,566,085)
(532,277)
Changes in pension liabilities and related deferred outflows and inflows of resources (3,212,665) Changes in OPEB liabilities and related deferred outflows and inflows of resources (628,952) Total adjustment (3,841,617)
Change in Net Position of Governmental Activities $ (12,171,749) Internal service funds provide services to other funds on a cost-reimbursement basis.

The net revenue of certain activities of internal service funds is reported with governmental activities.

Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

CITY OF PALM DESERT, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.

Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position.

Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

See accompaning notes to financial statements.
27 544

CITY OF PALM DESERT, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
ASSETS
Current assets:

Cash and investments $ 8,498,003 $ 6,106,472 $ 14,604,475 $ 8,445,556 Receivables:

Accounts 59,756 227,413 287,169 -
Leases 919,097 919,097 - -
Prepaid costs - 59,913 59,913 -
Inventories 301,682 - 301,682 -
Due from component unit 1,437,644 - 1,437,644 -
Total current assets 8,133,124 9,476,856 17,609,980 8,445,556 Noncurrent:

Leases Receivable, Noncurrent 3,750,307 3,750,307 - -
Nondepreciable capital assets 53,304,965 - 53,304,965 11,821 Depreciable capital assets, net 4,976,565 10,420,891 15,397,456 2,869,354 Total noncurrent assets 8,726,872 72,452,728 63,725,856 2,881,175 Total Assets 18,203,728 71,858,980 90,062,708 11,326,731

LIABILITIES
Current liabilities:

Accounts payable 147,981 809,325 957,306 23,151
Accrued liabilities - 266,561 266,561 -
Unearned revenues 29,314 261,557 290,871 -
Deposits Received 26,590 - 26,590 -
Due to component unit 1,305,037 - 1,305,037 -
Financed purchases - 88,397 88,397 -
Compensated absences - - - 500,000
Total current liabilities 2,730,877 203,885 2,934,762 523,151 Noncurrent liabilities:

Financed purchases 144,555 - 144,555 -
Advances from other funds 2,899,202 - 2,899,202 -
Compensated absences - - - 2,172,687
Total noncurrent liabilities 3,043,757 - 3,043,757 2,172,687 Total Liabilities 203,885 5,774,634 5,978,519 2,695,838

DEFERRED INFLOWS OF RESOURCES
Leases - 4,578,821 4,578,821 -
Total Deferred Inflows of Resources 4,578,821 4,578,821 - -

NET POSITION
Net Investment in Capital Assets 4,976,565 68,469,469 63,492,904 2,881,175 Net Position, Unrestricted 2,591,442 8,444,457 11,035,899 5,749,718 Total Net Position $ 13,421,022 $ 66,084,346 $ 79,505,368 $ 8,630,893 Business-Type Activities
Parkview
Office
Desert Willow
Golf
See accompanying notes to financial statements.
28 545

CITY OF PALM DESERT, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds

OPERATING REVENUES
Fees and rentals $ 1,206,190 $ 11,483,472 10,277,282 $ $ - Miscellaneous 269,876 14,600 284,476 -
Merchandise sales 1,653,078 - 1,653,078 -
Total Operating Revenues 1,220,790 12,200,236 13,421,026 -

OPERATING EXPENSES
General and administrative 93,030 3,278,848 3,185,818 283,100 Cost of merchandise 688,371 - 688,371 -
Maintenance and operations 6 950,638 7,006,715 ,056,077 317,148 Depreciation 1 318,645 1,939,095 ,620,450 736,211
Total Operating Expenses 1,362,313 11,550,716 12,913,029 1,336,459 Operating Income (Loss) (141,523) 649,520 507,997 (1,336,459)

NONOPERATING REVENUES (EXPENSES)
Interest Income 208,198 535,071 743,269 475,369
Interest Expense and Fiscal Charges (117,588) - ( 117,588) - Contribution to component unit (1,305,037) - (1,305,037) - Gains (Losses) on Sale of Capital Asset - - - (63,374)
Total Nonoperating Revenues (Expenses) 535,071 (1,214,427) (679,356) 411,995 Income (Loss) Before Capital Contributions and Transfers 393,548 (564,907) (171,359) (924,464) Capital contributions 189,931 - 189,931 -
Transfers in - - - 392,187
Transfers out - (294,105) (294,105) -
Change in Net Position 99,443 (374,976) (275,533) (532,277) Net position-beginning 66,459,322 13,321,579 79, 780,901 9,163,170 Net Position-Ending $ 13,421,022 $ 66,084,346 $ 79,505,368 $ 8,630,893 Business-Type Activities
Parkview
Office
Desert Willow
Golf
See accompanying notes to financial statements.
29 546

CITY OF PALM DESERT, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Internal
Totals Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 12, 1,265,835 $ 13,443,315 177,480 $ $ - Payments to suppliers and service providers (1,251,108) (9,760,070) (11,011,178) (503,442) Net Cash Provided By (Used For)
Operating Activities 14,727 2,417,410 2,432,137 (503,442)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds - - - 392,187
Transfers to other funds - (294,105) (294,105) -
Payments to other funds on interfund borrowings (1,280,686) - (1, 280,686) - Net Cash Provided By (Used For)
Noncapital Financing Activities (294,105) (1,280,686) (1,574,791) 392,187

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Capital contributions 189,931 - 189,931 -
Acquisition and construction of capital assets (1,082,784) - (1, 082,784) (1,071,302) Principal paid on capital debt (86,217) - (86,217) -
Interest paid on capital debt (117,588) - (117,588) -
Net Cash Provided By (Used For)
Capital and Related Financing Activities (1,096,658) - (1,096,658) (1,071,302)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 208,198 535,071 743,269 475,369 Net Cash Provided By (Used For)
Investing Activities 535,071 208,198 743,269 475,369
Net increase (decrease) in
Cash and Cash Equivalents 255,693 248,264 503,957 (707,188) Cash and Cash Equivalents-Beginning 5,858,208 8,242,310 14,100,518 9,152,744 Cash and Cash Equivalents-Ending $ 8,498,003 $ 6,106,472 $ 14,604,475 $ 8,445,556 Business-Type Activities
Parkview
Office
Desert Willow
Golf
See accompanying notes to financial statements.
30 547

CITY OF PALM DESERT, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Internal
Totals Service Funds
Business-Type Activities
Parkview
Office
Desert Willow
Golf

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) $ (141,523) $ 649,520 $ 507,997 $ (1,336,459) Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 318,645 1,620,450 1,939,095 736,211 (Increase) decrease in accounts receivable 15,754 (120,711) (104,957) - (Increase) decrease in notes and loans receivable 140,920 - 140,920 - (Increase) decrease in leases receivable 29,291 - 29,291 - (Increase) decrease in inventories - 12,250 12,250 -
(Increase) decrease in prepaid items (34,434) - (34,434) 1,996 Increase (decrease) in accounts payable (207,440) 158,485 (48,955) 23,151 Increase (decrease) in accrued liabilities - 33,895 33,895 - Increase (decrease) in deposits payable (42,965) - (42,965) - Increase (decrease) in compensated absences - - - 71,659 Total adjustments 1,767,890 156,250 1,924,140 833,017
Net Cash Provided By (Used For)
Operating Activities $ 2 14,727 $ 2,432,137 ,417,410 $ ( $ 503,442)

SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,

AND INVESTING ACTIVITIES
Contribution to component unit not paid as of June 30, 2024 $ 1 - $ ,305,037 $ 1,305,037 $ - See accompanying notes to financial statements.
31 548
Private
Purpose Custodial
Trust Funds Funds
ASSETS
Pooled cash and investments $ 10,366,701 $ 9,277,930
Receivables:

Assessments - 45,569,000
Due from other governments 22,000 35,012
Prepaid costs 1,123,299 -
Restricted assets:

Cash and investments with fiscal agents 19,880,789 4,244,913 Capital assets, not being depreciated 15,939,958 -
Total Assets 59,126,855 47,332,747

LIABILITIES
Accounts payable 782,756 9,576
Accrued interest 1,585,079 164,092
Deposits payable 20,000 45,569,000
Due to external parties/other agencies - 10,223,452
Long-term liabilities:

Long-term debt due in one year 13,600,000 -
Long-term debt due in more than one year 128,821,623 -
Total Liabilities 55,966,120 144,809,458

DEFERRED INFLOWS OF RESOURCES
Deferred charge on debt issuance 232,718 66,892
Total Deferred Inflows of Resources 232,718 66,892

NET POSITION
Restricted for other purposes - 3,093,843
Restricted for dissolution of former RDA (97,709,429) - Total Net Position $ 3,093,843 (97,709,429) $

CITY OF PALM DESERT, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
See accompanying notes to financial statements.
32 549
Private
Purpose Custodial
Trust Funds Funds

ADDITIONS
Investment income $ 33,447 $ 330,371
Gain on sale of capital assets 3,313,560 -
Total investment earnings 3,347,007 330,371
Taxes 19,752,951 -
Intergovernmental - 6,078,090
Contributions from City - 890,129
Total Additions 7,298,590 23,099,958

DEDUCTIONS
Administrative expenses - 515,190
Contractual services 963,295 3,600,971
Interest expense 5,622,769 1,569,645
Principal expense - 1,475,000
Contributions to other governments 4,600,000 -
Total Deductions 7,160,806 11,186,064
Net Increase (Decrease) in Fiduciary Net Position 11,913,894 137,784 Net Position-Beginning (109,623,323) 2,956,059
Net Position-Ending $ 3,093,843 (97,709,429) $

CITY OF PALM DESERT, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
See accompanying notes to financial statements.
33 550
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
34 551

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description Of The Reporting Entity
The City of Palm Desert was originally incorporated on November 26, 1973, as a General Law City. In December 1997, Measure LL was enacted following a vote by Palm Desert residents, which adopted a City Charter.

The City operates under a Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, public improvements, community development (planning, building and zoning) and general administrative services.

The City has defined its reporting entity in accordance with accounting principles generally accepted in the United States of America which provides guidance for determining which governmental activities, organizations and functions should be included in the reporting entity. The Basic Financial Statements present information on the activities of the reporting entity, which include the City of Palm Desert (the primary government) and its component units, entities for which the government is considered financially accountable.

Accounting principles generally accepted in the United States of America require that the component units be separated into blended or discretely presented units for reporting purposes. The following criteria were used in determination of blended component units: appointment of the governing board and fiscal dependence. Although legally separate entities, blended component units are, in substance, part of the City’s operations. Therefore, they are reported as part of the primary government. Discretely presented component units are reported in a separate column in the basic financial statements to emphasize that they are legally separate from the City.

Blended Component Units
Following are descriptions of legally separate component units for which the City is financially accountable that are blended with the Primary Government. The governing bodies of these component units are substantially the same with operational responsibility as the City and provides a financial benefit.

The Palm Desert Housing Authority (Housing Authority) was established by the City Council in January 1998, and is responsible for the administration of providing affordable housing in the City. The Housing Authority transactions are reported in the governmental funds balance sheet as a major fund.

The Palm Desert Financing Authority (Financing Authority) was formed on January 26, 1989. The purpose of the Financing Authority is to issue debt and loan the proceeds to the City and Agency. The Financing Authority’s capital related transactions are reported in the governmental fund financial statements in the capital projects funds, and the collection of assessments and payments of debt service is recorded in the fiduciary funds.

The City Council of Palm Desert is the governing body for the Housing Authority and Financing Authority.

Separate financial statements are not issued for the Housing Authority and Financing Authority.

Discretely Presented Component Unit
The Palm Desert Recreational Facilities Corporation (Corporation) was incorporated on February 25, 1997. The purpose of the Corporation is to lease, operate and manage a restaurant and bar in the Desert Willow Golf Course in Palm Desert, California. The Board of Directors of the Corporation appoints an executive director to administer operations.

The Corporation is in a separate column to emphasize that it is legally separate from the City and is financially accountable to the City. The two-member board governing the Corporation is appointed by the City Council, the City has authority to approve the Corporation’s budget, and the City must approve any debt issued.

Complete financial statements of the Component Unit can be obtained from the City’s administrative offices. 35 552

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation
Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Expenses reported for functional activities include allocated indirect expenses.

Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

Fund Financial Statements
The accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, deferred inflows of resources, fund equity, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories.

A fund is considered major if it is the primary operation fund of the City or meets the following criteria:
a. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type; and;
b. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of resources, revenues or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5% of the corresponding total for all governmental and enterprise funds combined; and; c. The government has determined that a fund is important to the financial statement user.

The funds of the financial reporting entity are described below:

Governmental Fund Types
General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue resources (other than major capital projects) that are legally restricted to expenditures for specified purposes. 36 553

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term obligation principal, interest and related costs.

Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities.

Proprietary Fund Types
Enterprise Funds - The Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the City Council is that the costs (expenses including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges.

The Primary Government’s Enterprise funds consist of the Parkview Office Complex and the Desert Willow Golf Course. Desert Willow Golf Course is operated by a management company. The discretely presented Component Unit’s fund consists of the Palm Desert Recreational Facilities Corporation, also operated by a management company.

Internal Service Funds - The Internal Service Funds account for financial transactions related to replacement of City-owned vehicles and equipment and to fund compensated absences. These services are provided to other departments or agencies of the City on a cost reimbursement basis.

Fiduciary Fund Types
Private-Purpose Trust Fund
The Successor Agency to the Palm Desert Redevelopment Agency Private Purpose Trust Fund is used to account for the activities of the Successor Agency to the Palm Desert Redevelopment Agency.

Custodial Funds
The Custodial, Special Assessment and Treasurers 1911 Bond Act Funds are used to account for assets held by the City in a custodial capacity as a trustee. These assets include deposits placed with the City by individuals, as well as deposits from assessment district’s property owners. These deposits are reduced by payments to individuals.

The City’s Retiree Service Stipend Fund is used to account for assets held to pay for the retiree service stipend.

The Treasures 1991 Bond Act Fund is used to account for assets held for the Bond Act.

The major funds are as follows:

Governmental Funds
The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

The Prop A Fire Tax Special Revenue Fund is used to account for all revenues derived from tax collected within the City for upgrading fire protection and prevention. Its use is restricted to obtaining, furnishing, operating and maintaining fire protection and prevention services (currently under contract with Riverside County Fire Department) equipment or apparatus. This fund is reported as a major fund because the tax collected is a voter approved measure.
37 554

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Housing Asset Special Revenue Fund is used to account for any funds generated from housing assets of the former Redevelopment Agency to be used for projects that benefit low and moderate income families.

The Housing Authority Special Revenue Fund is used to account for revenues and expenditures related to rental units owned by the Housing Authority, established in January 1998. This fund is determined to be important to the users of the financial statements and determined to be a major fund.

The Restricted Capital Project Fund is used to account for the cost of city owned properties that will either be sold or for the construction of public facilities, and the proceeds of bond funds for capital related properties.

Proprietary Fund
The Parkview Office Complex Fund is used to account for rent received from the City owned office complex.

The Desert Willow Golf Course Fund is used to account for the fees collected and expenses incurred in connection with operating the municipal golf course in the City of Palm Desert.

C. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied.

On the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-like activities are presented using the economic resources measurement focus. The accounting objectives of the economic measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position and cash flows. All assets, deferred outflows of resources, liabilities and deferred inflows of resources (whether current or noncurrent) associated with their activities are reported.

In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate:

1. All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets, deferred outflows of resources, current liabilities and deferred inflows of resources are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.

2. The proprietary fund and private purpose trust fund and custodial funds utilize an “economic resources” measurement focus. Proprietary fund and private purpose trust fund equity and custodial funds are classified as net position.

Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both governmental and business-like activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred, or economic asset used.

Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.
38 555

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting.

Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities.

Revenues that are susceptible to accrual include property taxes and special assessments that are levied for and due for the fiscal year and collected within 60 days after year-end. Licenses, permits, fines, forfeits, charges for services and miscellaneous revenues are recorded as governmental fund type revenues when received in cash because they are not generally measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes, are recognized in the accounting period in which they became both measurable and available to pay liabilities of the current period. Grants and similar items are recognized as soon as all eligibility requirements imposed by the provider have been met. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Interfund activity has been eliminated from the general government function for the government-wide financial statements except for charges between the government’s Desert Willow Golf Course and Parkview Office Complex funds and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues for the various functions considered.

The accrual basis of accounting is followed by the proprietary fund and private purpose trust fund. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred, or economic assets are used.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing goods and services in connection with a proprietary fund’s principal ongoing operations. The principal revenue of the Desert Willow Golf Course and Parkview Office Complex Enterprise Funds are charges to customers for use of the golf course and rental fees. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets.

All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

D. Appropriations Limit
Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or other refund arrangements. For the fiscal year ended June 30, 2024, proceeds of taxes did not exceed appropriations.

E. Cash and Investments
For purposes of the statement of cash flows, the City has defined cash and investments to include cash on hand, demand deposits, investments held in various instruments, and investments held in the California Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP) and Riverside County Treasurer’s Pooled Investment Fund.

F. Investments
Investments are reported in the accompanying financial statements at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments. 39 556

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Property Held for Resale
The land held for resale is recorded in the Housing Asset Fund as property held for resale at the lower of cost or market. At June 30, 2024, the cost of the property held for resale for various housing properties in Palm Desert totaled $61,516.

H. Capital Assets and Depreciation
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, traffic signals, drainage systems and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the City as assets with an initial cost above the amounts described in the table below and an estimated life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

The City has reported general infrastructure assets acquired in prior and current years.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:

I. Inventories, Prepaid Costs and Deposits
Inventory in the amount of $301,682 and $43,797, for the Desert Willow Golf Course Enterprise Fund (Primary Government) and Palm Desert Recreational Facilities Corporation (Component Unit), respectively, are reported at lower of cost or market. These inventories are held for resale.

Inventory in the amount of $13,710 in the Other Governmental Funds are also reported at lower of cost or market.

Inventory and prepaid costs are recorded as an expenditure when consumed rather than purchased.

Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid costs in the government-wide and fund financial statements.

Deposit of $20,000 in other governmental funds represents security deposit on rental of commercial space.

Asset Type
Capitalization
Threshold Useful Life
Subject to
Depreciation?
Land $ Infinite - No
Buildings $ 100,000 20-50 Years Yes
Infrastructure $ 100,000 10-50 Years Yes
Improvements Other than Buildings $ 100,000 20-50 Years Yes Equipment, Furniture & Vehicles $ 10,000 3-15 Years Yes Intangible Assets - Permanent Easements $ 10,000 Infinite No Intangible Assets - Temporary Easements $ 10,000 5 Years Yes City-Owned or Developed Software $ 100,000 5 Years Yes
Works of Art/Historical Treasures $ 10,000 Infinite No
Construction in Progress $ - N/A No
40 557

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Property Tax Calendar
Property taxes are assessed and collected each fiscal year according to the following property tax calendar:

Lien date: January 1
Levy date: July 1 to June 30
Due date: November 1 - 1st Installment
March 1 - 2nd Installment
Delinquent date: December 10 - 1st Installment
April 10 - 2nd Installment
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas prescribed by state statutes. The City accrues only those taxes, which are received within 60 days after the year-end. The City is a participant in the Teeter Plan under the California Revenue and Taxation Code. The County of Riverside has responsibility for the collection of delinquent taxes and the City receives 100% of the levy.

K. Leases
Lessee
The City is a lessee for a noncancellable lease of buildings and equipment. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements. The City recognizes lease liabilities with an initial, individual value of $10,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

Lessor
The City is a lessor for several noncancellable lease of a building. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements. 41 558

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.

Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. • The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

L. Subscription-Based Information Technology Arrangements The City is a subscriber for several noncancellable subscription of information technology services. The City recognizes a subscription liability and an intangible right‐to‐use subscription asset (subscription asset) in the government‐wide financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more.

At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments.
• The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions.
• The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.
42 559

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:
• Deferred outflows related to pensions and OPEB. This amount is equal to employer contributions made after the measurement date of the net pension liability and net OPEB liability/(asset). • Deferred outflows related to pensions and OPEB resulting from the difference in projected and actual earnings on investments of the pension plan and OPEB fiduciary net position. These amounts are amortized over five years.

Deferred outflows of resources related to pensions and OPEB arising from a change in assumptions and differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions and OPEB through the plan.

In addition to liabilities, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
• Deferred amount on refunding. A deferred amount on refunding results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
• Deferred inflows from unavailable revenue, which arises under a modified accrual basis of accounting is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: rent, investment income, grants, notes receivables collections and reimbursements.

These amounts are unavailable and recognized as an inflow of resources in the period that the amounts become available.
• Deferred inflows related to pensions and OPEB for differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions and OPEB through the plan. • Deferred inflows from OPEB resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with OPEB through the plan.
• Deferred inflows from lease related items for the amount of the lease receivable plus any lease payments related to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term.
43 560

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Employee Compensated Absences
It is the government’s policy to permit employees to accumulate earned but unused vacation and sick leave (compensated absences). Vacation pay and sick leave, which are expected to be liquidated with expendable available resources, are reported as expenditure and liability of the governmental fund that will pay it only if they have matured, for example, as a result of employee resignations or retirements.

O. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the District’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

GASB Statement No. 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date June 30, 2023
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
P. Other Post-Employment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and the OPEB expense have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period June 30, 2022 to June 30, 2023
Q. Fund Balance
The fund balances reported on the fund statements now consist of the following categories:
• Nonspendable - This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. • Restricted - This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers or through enabling legislation. • Committed - This classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City considers the adoption of a resolution to institute a formal action of City Council for the purpose of establishing, modifying or rescinding committed fund balances. • Assigned - This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. This includes amounts that are assigned through adoption of a resolution by City Council. The Council may delegate the ability of an employee or committee to assign uses of specific funds, for specific purposes. Such delegation of authority occurred on September 27th, 2018 and will be in effect for future fiscal years. 44 561

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • Unassigned - This classification includes the residual balance for the government’s general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balance first. When an expenditure is incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.

R. Net Position
For government‐wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted. • Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position.
• Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation. • Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories.

Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government‐wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

S. Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate trustee bank accounts and their use is limited to applicable bond covenants. In addition, funds have been restricted for future capital improvements by City resolution.

T. Deficit Fund Equity
At June 30, 2024, the City reported deficit fund balances/net position in the following funds:

Primary Government
Fund Name Fund Type Deficit
Permanent Local Housing Allocation Grant Nonmajor Special Revenue Fund (170,884) $ Buildings Nonmajor Capital Projects Fund (274,621)
Compensation Benefits Internal Service Fund (155,216)
45 562

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The deficit in the Permanent Local Housing Allocation Grant Fund will be eliminated in future years through contributions from other funds.

The deficit in the Buildings Fund will be eliminated in future years through contributions from other funds.

The deficit in the Compensation Benefits Fund will be eliminated in future years through contributions from other funds.

Fiduciary Funds
The deficit in the Successor Agency to the Palm Desert Redevelopment Agency Private-Purpose Trust Fund will be eliminated through future property taxes collected by the County under the direction of the State. The State of California is the responsible body for the elimination of this deficit.

U. Use of Estimates
The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America and, accordingly, include amounts that are based on management’s best estimates and judgments. The financial statements include estimates for the value of the capital assets (infrastructure), depreciation expense, the fair value of investments, the amounts reported for the net pension liability and related items (Note 11), the amounts reported for the net pension liability, net OPEB liability/(asset) and related items (Note 15), and claims payable (Note 9). Accordingly, actual results could differ from the estimates.

NOTE 2: CASH AND INVESTMENTS
As of June 30, 2024, cash and investments were reported in the accompanying financial statements as follows:

Fund Name Fund Type Deficit
Successor Agency to the Palm Desert
Redevelopment Agency Private-Purpose Trust Fund (97,709,429) $ Governmental activities $ 362,407,499
Business-type activities 14,604,475
Component unit 907,655
Fiduciary funds 43,770,333
Total cash and investments $ 421,689,962
46 563

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Cash and investments at June 30, 2024, consisted of the following:

The City of Palm Desert maintains a cash and investment pool that is available for use for all funds. Each fund type’s position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.

A. Deposits
At June 30, 2024, the carrying amount of the deposits was $23,141,162, and the bank balance was $21,338,535.

The $1,802,627 difference represents outstanding checks, deposits in transit and other reconciling items.

The California Government Code requires California banks and savings and loan associations to secure an Entity’s deposits by pledging government securities with a value of 110% of an Entity’s deposits. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of total deposits. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors.

Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an Agent of Depository has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

B. Investments
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Primary Government
Demand accounts $ 2,675,045
Petty cash 23,718
Investments 374,313,211
Total cash and investments - Primary Government $ 377,011,974 Component Unit
Demand accounts $ 907,655
Fiduciary Funds
Demand accounts $ 19,558,462
Pooled with primary government 1,341,826
Investments 22,870,045
Total cash and investments - Fiduciary Funds $ 43,770,333 47 564

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values.

The City Treasurer is authorized under state and municipal law to invest in various types of securities that meet specified credit quality standards, based upon credit risk ratings assigned by Standard and Poors (S&P), Fitch, or by Moody’s Investor Services (Moody’s). Permissible City investments include medium-term notes that are rated “A” or higher at time of purchase; commercial paper that is rated “A-1” or the equivalent; money market mutual funds that are rated “AAA”; and United States Government and Federal Agency securities (the quality of United States Treasury securities is not analyzed since they are not deemed to have credit risk).

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required, when applicable, by the California Government Code, the City’s investment policy, or debt agreements, and the rating by Standard and Poor’s, Fitch and Moody’s as of year-end for each investment type.

Primary Government
Authorized by Maximum Maximum
Investment Types Investment Maximum Percentage Investment Authorized by State Law Policy Maturity * of Portfolio * in One Issuer * United States Treasury Bills, Notes, Bonds Yes 5 years 100% none United States Government-Sponsored Agency
Securities Yes 5 years 100% 30%
California State and Local Agency Debt Yes 180 days 25% none Commercial Paper Yes 270 days 25% 10%
Negotiable Certificates of Deposit Yes 5 years 5% none
Time Certificates of Deposit Yes 5 years 5% none
Repurchase Agreements Yes 1 year 10% none
Medium-Term Corporate Notes Yes 5 years 25% 10%
Money Market Mutual Funds Yes 5 years 20% none
Local Agency Investment Fund (LAIF) Yes N/A $75M/Acct none Structured Notes (STRIPS) Yes 5 years 20% none
Local Government Investment Pools Yes N/A 75% none
* Based on state law requirements or City investment policy requirements, whichever is more restrictive.

Minimum Exempt or
Investment Type Total Legal Rating Aaa AAA Other Not Rated California Local Agency Investment Fund $ 1,979,111 N/A $ - $ - $ 1,979,111 - $ California Asset Management Program y 232,579,739 N/A 232,579,739 - - - Fund 2,804,389 N/A 2,804,389 - - -
U.S. Government Sponsored Agency Securities 45,525,237 N/A 45,525,237 - - - Medium-Term Corporate Notes 16,591,869 N/A - 16,591,869 - - Money Market Deposit Account 4,708,841 N/A - - 4,708,841 - Held by Fiscal Agent:

Money Market Deposit Account 70,124,025 N/A - - 70,124,025 - Total $ 374,313,211 $ 48,329,626 $ 232,579,739 $ 16,591,869 $ 76,811,977 48 565

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
The ratings for the “Other” category above are as follows:

Fiduciary Funds
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for the investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

As of June 30, 2024, none of the City’s deposits or investments were exposed to custodial credit risk.

Concentration of Credit Risk
The City’s investment policy imposes restrictions on the percentage the City can invest in certain types of investments, which the City is in compliance. As of June 30, 2024, in accordance with GASB Statement No. 40, if the City has invested more than 10% of its total investments in any one issuer then they are exposed to concentration of credit risk. The City is not invested in any one issuer that is more than 10% of its total investments.

Interest Rate Risk
The City’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that the City shall not invest in securities with maturities exceeding five years. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

Investment Type A A1 A2 A3 Total
Medium-Term Corporate Notes $ 1,506,771 $ 4,289,368 $ 7,944,892 $ 2,850,838 $ 16,591,869 Minimum Exempt or
Investment Type Total Legal Rating Aaa AAA Not Rated
California Local Agency Investment Fund $ N/A 794 $ - $ - $ 794 California Asset Management Program y 6,310 N/A - 6,310 - Fund N/A 357 357 - -
Investment in City Bonds 92,000 N/A - 92,000 -
Held by Fiscal Agent:

Money Market Deposit Account 22,770,584 N/A - 22,770,584 - Total $ 22,870,045 $ 357 $ 22,863,378 6,310 $
49 566

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
As of June 30, 2024, the City had the following investments and maturities:

Primary Government
Fiduciary Funds
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Investment in California Asset Management Program
The California Asset Management Program (CAMP) is a public joint powers authority which provides California Public Agencies with investment management services for surplus funds and comprehensive investment management, accounting and arbitrage rebate calculation services for proceeds of tax-exempt financings. The CAMP currently offers the Cash Reserve Portfolio, a short-term investment portfolio, as a means for Public Agencies to invest these funds. Public Agencies that invest in the Pool (Participants) purchase shares of beneficial interest.

Participants may also establish individual, professionally managed investment accounts (Individual Portfolios) by separate agreement with the Investment Advisor.

Investments in the Pools and Individual Portfolios are made only in investments in which Public Agencies generally are permitted by California statute. The CAMP may reject any investment and may limit the size of a Participant’s account. The Pool seeks to maintain, but does not guarantee, a constant net asset value of $1.00 per share. A Participant may withdraw funds from its Pool accounts at any time by check or wire transfers.

Requests for same-day wire transfers must be made by 11:00 a.m. that day. Fair value of the Pool is determined by the fair value per share of the Pool’s underlying portfolio.

Less Than 6 Months - 1 Year - Over
Investment Type Total 6 Months 1 Year 3 Years 3 Years
California Local Agency Investment Fund $ 1,979,111 $ 1,979,111 $ - $ - $ - California Asset Management Program 232,579,739 232,579,739 - - - Riverside County Treasurer's Pooled Investment Fund 2,804,389 2,804,389 - - - U.S. Government Sponsored Agency Securities 45,525,237 14,811,560 144,177 20,097,480 10,472,020 Medium-Term Corporate Notes 16,591,869 - 11,849,025 - 4,742,844 Money Market Desposit Account 4,708,841 4,708,841 - - - Held by Fiscal Agent:

Money Market Deposit Account 70,124,025 70,124,025 - - - Total $ 374,313,211 $ 327,007,665 $ 144,177 $ 31,946,505 $ 15,214,864 Less Than 6 Months - 1 Year - Over
Investment Type Total 6 Months 1 Year 3 Years 3 Years
California Local Agency Investment Fund $ 794 $ 794 $ - $ - $ - California Asset Management Program 6,310 6,310 - - -
Riverside County Treasurer's Pooled Investment Fund 357 357 - - - Investment in City Bonds 92,000 92,000 - - -
Held by Fiscal Agent:

Money Market Deposit Account 22,770,584 22,770,584 - - - Total $ 22,870,045 $ 22,870,045 $ - $ - $ -
50 567

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Investment in Riverside County Treasurer’s Pooled Investment Fund The City is a voluntary participant in the Riverside County Treasurer’s Pooled Investment Fund (Pooled Fund). The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value that the Riverside County Treasurer’s Office has provided for the entire Pooled Fund (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based upon the accounting records that the Riverside County Treasurer’s Office maintains, which are recorded on an amortized cost basis.

Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are described as follows:

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets in active markets that the City has the ability to access.

Level 2: Inputs to the valuation methodology include:
• Quoted prices for similar assets in active markets;
• Quoted prices for identical or similar assets in inactive markets; • Inputs other than quoted prices that are observable for the asset; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.

The asset’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

The determination of what constitutes observable requires judgment by the City’s management. City management considers observable data to be that market data which is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provided by multiple independent sources that are actively involved in the relevant market.

The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management’s perceived risk of that investment.

The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy. When quoted prices in active markets are not available, fair values are based on evaluated prices received by City’s asset manager from third party service provider.
51 568

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
The following is a description of the recurring valuation methods and assumptions used by the City to estimate the fair value of its investments.

For a large portion of the City’s portfolio, the City’s custodian applies their leveling methodology across all securities in a specific sector (i.e. U.S. Government Sponsored Agency Securities). Inputs to their pricing models are based on observable market inputs in active markets.

The Successor Agency Former RDA’s investment in City bonds is not tradable and is categorized in Level 3. When valuing Level 3 securities, the inputs or methodology are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy.

Primary Government
Fiduciary Funds
NOTE 3: NOTES AND LOANS RECEIVABLE
A. Notes Receivable
On August 8, 2006, the City of Palm Desert issued $3,165,000 of Limited Obligation Bonds. The proceeds of the Bonds were used to finance the construction of the utility undergrounding and pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the property tax rolls of those properties benefiting from the improvements. Bond maturities began September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record for the bonds and reports a receivable in the general fund that corresponds to the outstanding principal on the bonds. As of June 30, 2024, the receivable balance was $980,000.

Investment Type Total Level 1 Level 2 Level 3 Uncategorized California Local Agency Investment Fund $ 1,979,111 $ - $ - $ 1,979,111 - $ California Asset Management Program 232,579,739 - - 232,579,739 - Riverside County Treasurer's Pooled Investment
Fund 2,804,389 - - 2,804,389 -
U.S. Government Sponsored Agency Securities 45,525,237 45,525,237 - - - Medium-Term Corporate Notes 16,591,869 16,591,869 - - - Money Market Deposit Account 4,708,841 - - 4,708,841 -
Held by Fiscal Agent:

Money Market Deposit Account 70,124,025 - - 70,124,025 - Total $ 374,313,211 $ 62,117,106 - $ $ 312,196,105 - $
Input Category
Investment Type Total Level 1 Level 2 Level 3 Uncategorized California Local Agency Investment Fund $ 794 $ - $ - $ - $ 794 California Asset Management Program 6,310 - - - 6,310
Riverside County Treasurer's Pooled Investment
Fund 357 - - - 357
Investment in City Bonds 92,000 - 92,000 - -
Held by Fiscal Agent:

Money Market Deposit Account 22,770,584 - - 22,770,584 - Total $ 22,870,045 $ - $ 92,000 - $ $ 22,778,045
Input Category
52 569

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 3: NOTES AND LOANS RECEIVABLE (CONTINUED)
B. Loans Receivable
The City entered into several individual loan agreements with residents of the Highlands Utility Undergrounding Assessment District No. 04-01. The loans were issued by the City to pay off the principal of the respective properties assessment. In turn, the residents agreed to pay to the City the full cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the loan along with all accrued interest is due and payable at the earliest of September 2, 2036 or any change in ownership of the property. As of June 30, 2024, the total receivable from the Highlands Deferral Loan Program was $14,978.

Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been transferred to the Housing Asset Fund as the successor housing entity. The Housing Asset Fund has a loan receivable for the construction of a multi-family affordable housing development dated June 14, 2001 due from the PD Hovley Limited Partnership. The loan is secured by a Deed of Trust and Regulatory Agreement with Options on the housing development located in Palm Desert. On April 8, 2021 the Authority Board approved the re-syndication, refinancing and rehabilitation of the affordable housing development. The existing 2001 loan was modified to extend its maturity for fifty-five (55) years and provides for a suspension of principal payments for the estimated construction period. The Authority Loan shall bear interest at the greater of the current applicable federal rate as of the date of the Promissory Note or one percent (1%) simple interest per annum, and will be repaid from seventy-five percent (75%) of the developments residual receipts remaining after payment of fees and expenses. As of June 30, 2024, the total receivable from PD Hovley Limited Partnership was $5,148,813.

The Housing Asset Fund has a loan receivable for the construction of a multi-family affordable housing development dated December 20, 2022, due from Palm Desert Pacific Associates, a California Limited Partnership. The Authority Loan shall bear interest at three percent (3%) simple interest per annum, and repayment will commence as follows:
50% of Project Net Cash Flow, as defined in the Loan Agreement shall be paid to PDHA on an annual basis on June 30th after the first anniversary of issuance of a final certificate of occupancy for the project and each annual anniversary thereafter (with respect to the Project New Cash Flow for the preceding year ending on June 30th prior to each such payment date) until the Note has been satisfied in full. As of June 30, 2024, the total receivable from Palm Desert Pacific Associates was $6,030,000 and management has no reason to believe any allowance for doubtful accounts should be established for the loan.

On August 28, 2008, the City Council approved through resolution the Energy Independence Program (EIP), which is supported by Assembly Bill AB811. The EIP program allowed the City to create the funding mechanism to assist the residents and businesses entering into a loan agreement with the City and providing the money for the borrowers to acquire and install energy efficient improvements. Assembly Bill AB811 allows the City to lien the properties through annual property tax assessments for a period not to exceed 20 years. To date, 279 residents and business owners entered into loan agreements with the City and have completed their improvements through the EIP program, as of June 30, 2024, 160 loans have been repaid. The loans are payable in two annual installments for a period of 5 years to 20 years at an interest rate of 7% annually. On June 30, 2024, the outstanding loans receivable through the EIP Program was $975,973.

On November 1, 2023 The Palm Desert Housing Authority entered into a new loan agreement with A0358 Monterey L.P., a California limited partnership, in the amount of Seven Million Two Hundred Thirty-Five Thousand Dollars ($7,235,000) from the Authority's Low and Moderate Income Housing Asset Fund to fund the construction of One-Hundred Thirty Nine (139) of the One-Hundred Seventy Four (174) affordable housing units comprising the proposed apartment project, Crossings at Palm Desert Apartments.

Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been transferred to the Palm Desert Housing Authority as the successor housing entity. The Housing Authority has loans for several other projects, all of which are secured by a deed of trust. An allowance for doubtful accounts equal to the loan balance has been recognized since there is a significant possibility that these loans will either become uncollectible or forgiven by the Housing Authority at a future date if all the terms of the loans have been met. 53 570

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 3: NOTES AND LOANS RECEIVABLE (CONTINUED)
Detailed information for these loans is as follows:

NOTE 4: INTERFUND RECEIVABLES, PAYABLE, ADVANCES AND TRANSFERS The composition of interfund balances as of June 30, 2024, was as follows:

A. Due To/From Other Funds
The amounts loaned from the General Fund to non-major governmental funds and capital properties were to cover cash shortfall at year end as of June 30, 2024.

NOTE 4: INTERFUND RECEIVABLES, PAYABLE, ADVANCES AND TRANSFERS (CONTINUED) B. Advances To/From Other Funds
Accrued Total
Principal Unpaid Outstanding
Balance Interest as of Interest Maturity
Project Name Outstanding Outstanding June 30, 2024 Rate Date Notes Home Improvement Loans $ 324,466 $ 324,466 - $ N/A N/A (1),(2) Portola Palms Mobile Home Park 62,891 1,887 3.00% 30 years (3) 64,778 Desert Rose 2,465,156 73,955 2,539,111 3.00% 30-45 years* (1),(3) Falcon Crest 3,003,562 90,107 3,093,669 3.00% 30-45 years* (1),(2) Acquisition, Rehabilitation, Resale 190,510 5,715 196,225 3.00% 30-45 years (2) Habitat for Humanity 327,000 9,810 336,810 7.25% 30 years or 2024 (2) $ 6,373,585 $ 181,474 6,555,059
Less: Allowance for Doubtful Accounts (6,555,059)
Balance at June 30, 2024 $ -
* All properties acquired from the former Redevelopment Agency after June 2009 will have a 45 year restrictive covenant and are secured by a deed of trust. (1) Portion of deferred loans are from funding sources other than Housing Authority. (2) Loan is payable upon change or transfer of title, refinancing or upon the death of the borrower. (3) Loan balance and interest will be forgiven at maturity if debtor does not breach the terms and conditions of either the unit regulatory agreement or note.

Receivable Fund Payable Fund Amount
General Fund Housing Authority $ 2,095,518
Restricted Capital Project Fund 1,574,342
Other Governmental Funds 228,693
$ 3,898,553
Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds $ 810,000
Desert Willow Golf Course 500,000
Other Governmental Funds Desert Willow Golf Course 2,399,202 $ 3,709,202
54 571

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 4: INTERFUND RECEIVABLES, PAYABLE, ADVANCES AND TRANSFERS (CONTINUED) The General Fund advanced $810,000 to the Energy Independence Special Revenue Fund to payoff the bonds used to fund energy efficiency, and loaned $500,000 to Desert Willow Golf Course to fund the daily operations, including the daily operations of the restaurant. The advance to the Energy Independence Special Revenue Fund is repaid as the Energy Independence Program (EIP) loans are repaid. See Note 3 for more information on these loans.

The Capital Golf fund advanced $3,627,329 to the Desert Willow Golf Course for the purchases of golf carts totaling $2,051,890 and golf course equipment totaling $1,575,439. The advance for the golf carts will be repaid over 48 months beginning January 1, 2023 and bears interest at a rate of 2.5%. The advance for the golf course equipment will be repaid over 60 months beginning November 1, 2022 and bears interest at a rate of 2.5%.

The future payment schedule for these advances are as follows:

C. Due To/From Component Unit
The Palm Desert Recreational Facilities Corporation (the Corporation) owes the General Fund $420,000 in deferred unpaid rent for various years through FY 2020-2021 associated with the lease between the City and the Corporation. The Corporation owes the Desert Willow Golf Course Fund $1,437,644 which represents subsidies for operation, $1,296,724 of which relates to prior fiscal years and $140,040 which relates to the current year. There is no payment schedule in place for the repayment of these amounts, therefore these transactions have been recorded as long-term in the accompanying financial statements.

D. Interfund Transfers
The composition of interfund transfers as of June 30, 2024, was as follows:

Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2025 800,428 $ 50,849 $ 851,277 $
2026 820,670 30,608 851,278
2027 633,196 10,937 644,133
2028 144,908 756 145,664
Total 2,399,202 $ 93,150 $ 2,492,352 $
Advance to Desert Willow Golf Course Fund
Receivable Fund Payable Fund Amount
General Fund Palm Desert Recreational Facilities Corporation 420,000 $ Desert Willow Golf Course Palm Desert Recreational Facilities Corporation 1,437,644 $ 1,857,644
Transfers Out General Fund
Prop A Fire
Tax Special
Revenue Fund
Other
Governmental
Funds
Internal
Service Fund Totals
General Fund $ 4,600,000 - $ $ 4,607,778 $ 272,399 $ 9,480,177 Housing Authority
Special Revenue Fund - 452,997 - 452,997 -
Restricted Capital
Project Fund - 1,800,000 - 1,800,000 -
Other Governmental Funds 102,701 3,199,999 - 119,788 3,422,488 Parkview Office 294,105 - - 294,105 -
Totals $ 396,806 $ 4,600,000 $ 10,060,774 $ 392,187 $ 15,449,767 55 572

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 4: INTERFUND RECEIVABLES, PAYABLE, ADVANCES AND TRANSFERS (CONTINUED) Transfers are used to:

1. Transfer revenues to provide for capital projects.

2. Transfer revenues to provide for additional resources to pay for expenditures.

3. Transfer to cover future cost of assets.

NOTE 5: CAPITAL ASSETS
A summary of changes in capital assets at June 30, 2024, was as follows:

A. Primary Government – Governmental Activities
Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Governmental activities:

Capital assets, not being depreciated/amortized
Land $ 82,287,089 $ 533,261 $ (123,330) $ 82,697,020
Right-of-way 121,260,045 - 121,260,045 -
Construction-in-progress 10,179,700 1,228,864 (189,520) 11,219,044 Total capital assets, not being depreciated/amortized 213,726,83 4 1,762,125 (312,850) 215,176,109 Capital assets, being depreciated/amortized
Buildings 151,140,855 - 151,140,855 -
Improvements other than buildings 63,662,563 - 63,662,563 - Machinery, equipment, and vehicles 11,446,725 25,082 (512,479) 10,959,328 Infrastructure 254,409,656 - 254,409,656 -
Lease assets 2,603,284 - 2,603,284 -
Subscription assets 543,846 473,763 (204,241) 813,368
Equipment - Internal service fund 8,880,350 1,007,928 (63,373) 9,824,905 Total capital assets, being depreciated/amortized 492,687,279 1,506,773 (780,093) 493,413,959 Less accumulated depreciation/amortization
Buildings (81,621,601) (3,586,447) (85,208,048) -
Improvements other than buildings (50,603,800) (1,894,577) (52,498,377) - Machinery and equipment (10,516,180) (207,459) (10,723,639) - Infrastructure (134,534,858) (5,073,845) (139,608,703) - Lease assets (468,656) (234,738) (703,394) -
Subscription assets (128,714) (300,898) 145,851 (283,761) Equipment - Internal service fund (6,282,713) (736,211) 63,373 (6,955,551) Total accumulated depreciation/amortization (284,156,522) (12,034,175) 209,224 (295,981,473) Total capital assets, being depreciated/amortized, net 208,530,757 (10,527,402) (570,869) 197,432,486 Total Governmental Activities Capital Assets $ 422,257,591 $ (8,765,277) $ (883,719) $ 412,608,595 56 573

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 5: CAPITAL ASSETS (CONTINUED)
Depreciation/amortization expense was charged to functions/programs as follows:

B. Primary Government – Business-Type Activities
Depreciation/amortization expense was charged to functions/programs as follows:

Governmental Activities:

General government $ 2,216,673
Housing and redevelopment 1,600,448
Public safety 189,914
Public works 5,885,715
Parks, recreation and culture 1,405,214
Internal Service Funds 736,211
Total Depreciation/Amortization Expense - Governmental Activities $ 12,034,176 Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Business-type activities:

Capital assets, not being depreciated/amortized
Land $ 53,304,965 $ - $ 53, - $ 304,965
Total capital assets, not being depreciated/amortized 53,304,965 - 53, - 304,965 Capital assets, being depreciated/amortized
Buildings and improvements 28,601,893 41,366 28, - 643,259 Machinery and equipment 8,387,811 1,041,418 9, - 429,229 Total capital assets, being depreciated/amortized 36,989,704 1,082,784 38, - 072,488 Less accumulated depreciation/amortization
Buildings and improvements (16,087,016) (844,617) (16, - 931,633) Machinery and equipment (4,648,921) (1,094,478) (5, - 743,399) Total accumulated depreciation/amortization (20,735,937) (1,939,095) (22, - 675,032) Total capital assets, being depreciated/amortized, net 16,253,76 7 (856,311) 15, - 397,456 Total business-type activities capital assets $ 69,558,732 $ (856,311) $ 68, - $ 702,421 Business-Type Activities:

Parkview Office Complex $ 318,645
Desert Willow Golf Course 1,620,450
Total depreciation/amortization expense - business-type activities $ 1,939,095 57 574

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 5: CAPITAL ASSETS (CONTINUED)
C. Component Unit
NOTE 6: LONG-TERM DEBT
The following is a summary of long-term liability transactions of the City for the year ended June 30, 2024.

A. Primary Government – Governmental Activities
Debt service payments for the special assessment debt with government commitment, tax allocation bonds and notes payable are made from debt service funds and a special revenue fund.

Special Assessment Debt with Government Commitment
Highlands Undergrounding Assessment District No. 04-01, Limited Obligation Improvement Bonds, Series 2006 On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The proceeds of the Bonds were used to finance the construction of the utility undergrounding and pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the property tax rolls of those properties benefiting from the improvements. In the event that assessment collections are insufficient to pay the debt service, the City has a potential obligation to provide additional funds to pay the debt service, therefore these bonds are reported as special assessment debt with government commitment. Bond maturities begin September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record of the bonds and the City does not own the constructed assets.

Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Component Unit:

Capital assets, being amortized
Lease asset $ 2,636,688 $ - $ 2,636,688 - $
Total capital assets, being amortized 2,636,688 - 2,636,688 - Less accumulated amortization
Lease asset (142,524) (71,262) (213,786) -
Total accumulated amortization (142,524) (71,262) (213,786) - Total capital assets, being amortized, net 2,494,164 (71,262) 2,422,902 - Total component unit capital assets $ 2,494,164 $ (71,262) $ 2,422,902 - $ Balance
June 30, 2023 Additions Reductions Bond Calls
Balance
June 30, 2024
Due Within
One Year
Direct Borrowing:

Special assessment debt 1,032,000 $ - $ (52,000) $ - $ 980,000 $ 55,000 $ with government commitment
Limited obligation improvement bonds 126,000 - (26,000) (12,000) 88,000 18,000 Total 1,158,000 $ - $ (78,000) $ (12,000) $ 1,068,000 $ 73,000 $ 58 575

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 6: LONG-TERM DEBT (CONTINUED)
The future debt service requirements on the Highlands Undergrounding Assessment District No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows:

Limited Obligation Bonds
Limited Obligation Improvement Bonds Series 2009A (Taxable) On January 29, 2009, the City issued $2,015,000 Limited Obligation Improvement Bonds Series 2009A (Taxable).

The proceeds of the Bonds were used to fund the City’s Energy Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to par value. The bonds bear interest at 3% payable semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and continue annually through September 2, 2029.

The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009A (Taxable) are as follows:

Limited Obligation Improvement Bonds Series 2009B (Taxable) On September 2, 2009, the City issued $1,136,000 Limited Obligation Improvement Bonds Series 2009B (Taxable).

The proceeds of the Bonds were used to fund the City’s Energy Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to par value. The bonds bear interest at 3% payable semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and continue annually through September 2, 2029.

Year Ending
June 30, Principal Interest Total
2025 $ 55,000 $ 48,981 $ 103,981
2026 58,000 46,099 104,099
2027 61,000 43,065 104,065
2028 64,000 39,861 103,861
2029 67,000 36,488 103,488
2030-2034 390,000 125,660 515,660
2035-2038 285,000 22,531 307,531
Total 980,000 $ $ 362,684 $ 1,342,684
Year Ending
June 30, Principal Interest Total
2025 $ 9,000 $ 1,410 $ 10,410
2026 7,000 1,140 8,140
2027 7,000 930 7,930
2028 8,000 720 8,720
2029 8,000 480 8,480
2030-2033 8,000 240 8,240
Total $ 47,000 $ 4,920 $ 51,920
59 576

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 6: LONG-TERM DEBT (CONTINUED)
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009B (Taxable) are as follows:

B. Primary Government – Business-Type Activities

The City entered into a 48-month agreement for the purchase of golf cart fleet equipment with Club Car National on June 12, 2018. Payments are $12,330 monthly commencing on February 1, 2019 and includes interest at 5.75%.

The amount was paid in full as of June 30, 2024.

The City entered into a 48-month agreement for the purchase of golf cart fleet equipment with GPSI Leasing, LLC.

The agreement was amended on December 27, 2018 to extend the payment terms an additional 48 months and lower the payment to $5,792 beginning on November 1, 2018, including interest at 5.75%. The amount was paid in full as of June 30, 2024.

The City entered into a 60-month agreement for the purchase of Toro golf course equipment with PNC Equipment Finance, LLC. Payments are $25,078 monthly commencing on October 1, 2017 and includes interest at 2.95%.

The amount was paid in full as of June 30, 2024.

The City entered into a financed purchase agreement with GPSI Leasing, LLC for the purchase of golf carts. The financed purchase bears interest at a rate of 5.75%. On December 20, 2022 the finance purchase agreement was amended to extend additional the term for an 48 months resulting in a revised annual payment of $93,213 beginning February 1, 2023.

The future debt service requirements on the financed purchases are as follows:

Year Ending
June 30, Principal Interest Total
2025 9,000 $ 1,470 $ 10,470 $
2026 6,000 1,170 7,170
2027 7,000 960 7,960
2028 7,000 720 7,720
2029 7,000 480 7,480
2030-2033 5,000 240 5,240
Total 41,000 $ 5,040 $ 46,040 $
Amount
Balance Balance Due Within
July 1, 2023 Additions Deletions June 30, 2024 One Year GPSI Leasing, LLC 319,169 $ - $ 86,217 $ 232,952 $ 88,397 $ Totals 319,169 $ - $ 86,217 $ 232,952 $ 88,397 $
Year Ending
June 30, Principal Interest Total
2025 $ 88,397 $ 4,816 $ 93,213
2026 90,632 2,580 93,212
2027 53,923 450 54,373
Total $ 232,952 $ 7,846 $ 240,798
60 577

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 7: COMPENSATED ABSENCES
The City's policy relating to compensated absences is described in Note 1 of the Notes to Financial Statements.

The City historically allocates costs to liquidate liabilities for compensated absences and pension liability based on the allocation of the employees earning the respective benefits and their respective payroll expense to various fund across the City. This liability will be paid in future years from future resources in the internal service fund. The outstanding liability for compensated absences accrued was $2,672,688.

NOTE 8: LEASES
A. Leases Receivable and Deferred Inflows of Resources
Primary Government – Governmental Activities
On July 1, 2021, the City entered into a 262-month lease as lessor for the Crown Castle Cell Tower - Cook St at Desert Willow. An initial lease receivable was recorded in the amount of $42,517. As of June 30, 2024, the value of the lease receivable is $24,729. The lessee is required to make annual fixed payments of $19,243. The lease has an interest rate of 1.5830%. The value of the deferred inflow of resources as of June 30, 2024 was $36,677, and the City recognized lease revenue of $1,947 during the fiscal year. The lessee has 2 extension options, each for 120 months.

On July 1, 2021, the City entered into a 60-month lease as lessor for the use of Soccer Park. An initial lease receivable was recorded in the amount of $135,241. As of June 30, 2024, the value of the lease receivable is $54,281. The lessee is required to make annual fixed payments of $27,376. The lease has an interest rate of

0.5770%. The value of the deferred inflow of resources as of June 30, 2024 was $54,900, and the City recognized lease revenue of $26,780 during the fiscal year.

On July 1, 2021, the City entered into a 136-month lease as lessor for the use of Civic Center Cell Tower. An initial lease receivable was recorded in the amount of $415,792. As of June 30, 2024, the value of the lease receivable is $324,792. The lessee is required to make monthly fixed payments of $2,838. The lease has an interest rate of

1.2540%. The value of the deferred inflow of resources as of June 30, 2024 was $305,729, and the City recognized lease revenue of $36,688 during the fiscal year. The lessee has 2 extension options, each for 60 months.

On July 1, 2021, the City entered into a 66-month lease as lessor for the use of the Vineyards Commercial Center.

An initial lease receivable was recorded in the amount of $332,786. As of June 30, 2024, the value of the lease receivable is $139,272. The lessee is required to make annual fixed payments of $64,542. The lease has an interest rate of 0.7030%. The value of the deferred inflow of resources as of June 30, 2024 was $151,266, and the City recognized lease revenue of $60,507 during the fiscal year.

On July 1, 2021, the City entered into a 444-month lease as lessor for the use of the restaurant at the Desert Willow Golf Course Clubhouse from the Corporation. An initial lease receivable was recorded in the amount of $2,636,688.

As of June 30, 2024, the value of the lease receivable is $2,475,748. The Corporation is required to make monthly fixed payments of $8,000. The lease has an interest rate of 1.7050%. The value of the deferred inflow of resources as of June 30, 2024 was $2,422,902, and the City recognized lease revenue of $71,261 during the fiscal year.

Balance Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year $ 2,601,028 $ 283,100 $ 211,441 $ 2,672,687 $ 500,000
61 578

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 8: LEASES (CONTINUED)
The principal and interest payments that are expected to maturity are as follows:

Primary Government – Business-Type Activities
On January 3, 2023, the City entered into a 24-month lease as lessor for the use of Parkview Office Complex, Ste 129. An initial lease receivable was recorded in the amount of $40,498. As of June 30, 2024, the value of the lease receivable is $10,464. The lessee is required to make monthly fixed payments of $1,706. The lease has an interest rate of 2.707%. The value of the deferred inflow of resources as of June 30, 2024 was $10,237, and the City recognized lease revenue of $20,249 during the fiscal year. The lessee has 5 extension options, each for 12 months.

On May 1, 2023, the City entered into a 60-month lease as lessor for the use of Parkview Office Complex, Ste 126.

An initial lease receivable was recorded in the amount of $103,212. As of June 30, 2024, the value of the lease receivable is $81,395. The lessee is required to make monthly fixed payments of $1,716. The lease has an interest rate of 2.31%. The value of the deferred inflow of resources as of June 30, 2024 was $79,130, and the City recognized lease revenue of $20,642 during the fiscal year. The lessee has 5 extension options, each for 12 months.

On December 1, 2022, the City entered into a 60-month lease as lessor for the use of Parkview Office Complex, Ste 120. An initial lease receivable was recorded in the amount of $143,073. As of June 30, 2024, the value of the lease receivable is $102,340. The lessee is required to make monthly fixed payments of $2,438. The lease has an interest rate of 3.305%. The value of the deferred inflow of resources as of June 30, 2024 was $97,767, and the City recognized lease revenue of $28,615 during the fiscal year. The lessee has 5 extension options, each for 12 months.

On December 1, 2022, the City entered into a 24-month lease as lessor for the use of Parkview Office Complex, Suites 108, 100, 116, and 220. An initial lease receivable was recorded in the amount of $172,400. As of June 30, 2024, the value of the lease receivable is $37,287. The lessee is required to make monthly fixed payments of $7,298. The lease has an interest rate of 3.207%. The value of the deferred inflow of resources as of June 30, 2024 was $35,917, and the City recognized lease revenue of $86,200 during the fiscal year. The lessee has 1 extension options, for 12 months.

On December 1, 2022, the City entered into a 24-month lease as lessor for the use of Parkview Office Complex Ste 103. An initial lease receivable was recorded in the amount of $24,118. As of June 30, 2024, the value of the lease receivable is $4,612. The lessee is required to make monthly fixed payments of $903. The lease has an interest rate of 3.2070%. The value of the deferred inflow of resources as of June 30, 2024 was $4,202, and the City recognized lease revenue of $10,085 during the fiscal year. The lessee has 2 extension options, each for 12 months.

Fiscal Year Principal Payments Interest Payments Total Payments 2025 182,375 $ $ 47,358 $ 229,733
2026 187,203 45,373 232,576
2027 91,761 43,336 135,097
2028 94,353 41,916 136,269
2029 97,017 40,460 137,477
2030 - 2034 476,374 179,415 655,789
2035 - 2039 332,641 147,359 480,000
2040 - 2044 362,221 117,779 480,000
2045 - 2049 394,430 85,570 480,000
2050 - 2054 429,504 50,496 480,000
2055 - 2058 370,943 13,056 383,999
Total $ 3,018,822 $ 812,118 $ 3,830,940
Governmental Activities
62 579

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 8: LEASES (CONTINUED)
On July 1, 2021, the City entered into a 48-month lease as lessor for the use of 73-720 Fred Waring Dr. An initial lease receivable was recorded in the amount of $400,629. As of June 30, 2024, the value of the lease receivable is $109,165. The lessee is required to make monthly fixed payments of $8,139. The lease has an interest rate of

0.5770%. The value of the deferred inflow of resources as of June 30, 2024 was $100,157, and the City recognized lease revenue of $100,157 during the fiscal year.

On January 1, 2023, the City entered into a 24 month lease as Lessor for the use of 73-720 Fred Waring Drive, Suite 100 - SWRCB. An initial lease receivable was recorded in the amount of $658,251. As of June 30, 2024, the value of the lease receivable is $167,691 and the value of the short-term lease receivable is $167,691. The lessee is required to make monthly fixed payments of $28,181. The lease has an interest rate of 2.8470%. The Buildings estimated useful life was 0 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2024 was $164,563, and the City recognized lease revenue of $329,126 during the fiscal year.

On July 1, 2021, the City entered into a 132-month lease as lessor for the use of Parkview Suite 112. An initial lease receivable was recorded in the amount of $223,707. As of June 30, 2024, the value of the lease receivable is $175,707. The lessee is required to make monthly fixed payments of $1,823. The lease has an interest rate of

2.927%. The value of the deferred inflow of resources as of June 30, 2024 was $162,696, and the City recognized lease revenue of $20,337 during the fiscal year.

On July 1, 2021, the City entered into a 63-month lease as lessor for the use of Parkview Ste 102. An initial lease receivable was recorded in the amount of $131,906. As of June 30, 2024, the value of the lease receivable is $65,932. The lessee is required to make monthly fixed payments of $2,458. The lease has an interest rate of

0.5770%. The value of the deferred inflow of resources as of June 30, 2024 was $65,483, and the City recognized lease revenue of $28,109 during the fiscal year. The lessee has 3 extension options, each for 12 months.

On January 1, 2022, the City entered into a 120-month lease as lessor for the use of Civic Center Sheriff Substation.

An initial lease receivable was recorded in the amount of $4,710,493. As of June 30, 2024, the value of the lease receivable is $3,581,915. The lessee is required to make monthly fixed payments of $41,645. The lease has an interest rate of 1.2050%. The value of the deferred inflow of resources as of June 30, 2024 was $3,532,870, and the City recognized lease revenue of $471,049 during the fiscal year. The lessee has 1 extension option for 60 months.

On October 1, 2023, the City entered into a 96 month lease as Lessor for the use of Parkview Ste 212 - Dept of Food and Agriculture. An initial lease receivable was recorded in the amount of $200,081. As of June 30, 2024, the value of the lease receivable is $185,274. The lessee is required to make monthly fixed payments of $2,178.

The lease has an interest rate of 3.7390%. The Buildings estimated useful life was 0 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2024 was $181,324, and the City recognized lease revenue of $18,758 during the fiscal year. The lessee had a termination period of 48 months as of the lease commencement.

On October 1, 2023, the City entered into a 96 month lease as Lessor for the use of Parkview Ste 201 - Dept of Food and Agriculture . An initial lease receivable was recorded in the amount of $159,420. As of June 30, 2024, the value of the lease receivable is $147,622. The lessee is required to make monthly fixed payments of $1,736.

The lease has an interest rate of 3.7390%. The Buildings estimated useful life was 0 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2024 was $144,475, and the City recognized lease revenue of $14,946 during the fiscal year. 63 580

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 8: LEASES (CONTINUED)
The principal and interest payments that are expected to maturity are as follows:

B. Leases Payable and Lease Assets
Primary Government – Governmental Activities
On July 1, 2021, the City entered into a 51-month lease as lessee for the use of Xerox Financial Services. An initial lease liability was recorded in the amount of $125,262. As of June 30, 2024, the value of the lease liability is $39,528.

The City is required to make monthly fixed payments of $2,646. The lease has an interest rate of 0.6320%. The value of the lease asset as of June 30, 2024 of $125,262 with accumulated amortization of $88,420 is included with equipment on the lease class activities table found below.

On July 1, 2021, the City entered into a 145-month lease as lessee for the use of 37023 Cook Street. An initial lease liability was recorded in the amount of $2,468,060. As of June 30, 2024, the value of the lease liability is $1,934,285.

The City is required to make monthly fixed payments of $16,621. The lease has an interest rate of 1.2540%. The value of the lease asset as of June 30, 2024 of $2,468,060 with accumulated amortization of $609,816 is included with buildings on the lease class activities table found below. The City has one extension options for 84 months.

On November 29, 2021, the City entered into a 60-month lease as lessee for the use of Xerox Financial Services.

An initial lease liability was recorded in the amount of $9,962. As of June 30, 2024, the value of the lease liability is $4,860. The City is required to make monthly fixed payments of $178. The lease has an interest rate of 2.1840%.

The value of the lease asset as of June 30, 2024 of $9,962 with accumulated amortization of $5,158 is included with equipment on the lease class activities table found below.

The principal and interest payments that are expected to maturity are as follows:

Fiscal Year Principal Payments Interest Payments Total Payments 2025 $ 919,097 $ 64,473 $ 983,569
2026 601,955 53,239 655,195
2027 593,400 43,907 637,307
2028 574,804 34,552 609,356
2029 553,019 26,086 579,105
2030 - 2034 1,427,129 28,158 1,455,286
Total $ 4,669,404 $ 250,415 $ 4,919,818
Business-Type Activities
Lease liability
Balance
June 30,
2023 Additions Reductions
Balance
June 30,
2024
Due
Within
One Year
$ - 2,197,126 $ (218,453) $ 1,978,673 $ 227,383$
Fiscal Year Principal Payments Interest Payments Total Payments 2025 $ 227,383 $ 23,394 $ 250,777
2026 212,749 20,718 233,467
2027 207,088 18,104 225,192
2028 208,982 15,498 224,480
2029 211,618 12,862 224,480
2030 - 2034 910,853 24,479 935,332
Total $ 1,978,673 $ 115,055 $ 2,093,728
Governmental Activities
64 581

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 8: LEASES (CONTINUED)
Lease assets by class activity at June 30, 2024 are as follows:

Component Unit
On July 1, 2021, the Corporation entered into a 444-month lease as lessee for the use of the restaurant at the Desert Willow Golf Course Clubhouse from the City. An initial lease liability was recorded in the amount of $2,636,688. As of June 30, 2024, the value of the lease liability is $2,475,747. The Corporation is required to make monthly fixed payments of $8,000. The lease has an interest rate of 1.705%. The value of the lease asset as of June 30, 2024 of $2,636,688 with accumulated amortization of $213,786 is included with buildings on the lease class activities table found below.

The principal and interest payments that are expected to maturity are as follows:

Lease assets by class activity at June 30, 2024 are as follows:

Amount of
Leased Capital
Assets
Accumulated
Amortization
Lease assets - building $ 2,468,060 $ 609,816
Lease assets - equipment 135,224 93,578
$ 2,603,284 $ 703,394
Lease Type
Equipment
Building
Major Class of Underlying Asset
Lease liability
Balance
June 30,
2023 Additions Reductions
Balance
June 30,
2024
Due
Within
One Year
$ 2,529,042 $ (53,295) - $ $ 2,475,747 $ 54,211
Fiscal Year Principal Payments Interest Payments Total Payments 2025 54,211 $ 41,789 $ 96,000 $
2026 55,142 40,858 96,000
2027 56,090 39,910 96,000
2028 57,054 38,946 96,000
2029 58,034 37,966 96,000
2030 - 2034 305,477 174,523 480,000
2035 - 2039 332,641 147,359 480,000
2040 - 2044 362,221 117,779 480,000
2045 - 2049 394,430 85,570 480,000
2050 - 2054 429,504 50,496 480,000
2055 - 2058 370,943 13,056 383,999
Total $ 2,475,747 $ 788,252 $ 3,263,999
Component Unit
Amount of
Leased Capital
Assets
Accumulated
Amortization
Lease assets - building 2,636,688 $ 213,786 $
$ 213,786 2,636,688 $
Lease Type Major Class of Underlying Asset
Building
65 582

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 9: SUBSCRIPTIONS
As of June 30, 2024, the City had 10 active subscriptions. The subscriptions have payments that range from $7,850 to $79,805 and interest rates that range from 2.0240% to 3.7640%. As of June 30, 2024 the total combined value of the subscription liability is $278,662, and the total combined value of the short-term subscription liability is $135,216. The combined value of the right to use asset, as of June 30, 2024 of $813,368 with accumulated amortization of $283,761 is included within the Subscription Class activities table found below. The subscriptions had $0 of Variable Payments and $0 of Other Payments, not included in the Subscription Liability, within the Fiscal Year.

The principal and interest payments that are expected to maturity are as follows:

Subscription assets include the following at June 30, 2024:

NOTE 10: RISK MANAGEMENT AND CLAIMS PAYABLE
A. Description of Self-Insurance Pool Pursuant to Joint Power Agreement The City of Palm Desert is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority).

The Authority is composed of 126 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

B. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Subscription liability
Balance
June 30, 2023 Additions Reductions
Balance
June 30,
2024
Due
Within
One Year
$ 302,378 399,583 $ (423,299) $ 278,662 $ 135,216 $
Fiscal Year Principal Payments Interest Payments Total Payments 2025 $ 135,216 $ 8,923 $ 144,139
2026 113,260 4,541 117,801
2027 30,186 810 30,996
Total $ 278,662 $ 14,274 $ 292,936
Governmental Activities
Amount of
Subscription
Assets
Accumulated
Amortization
Subscription assets - software 813,368 $ 283,761 $
Major Class of Underlying Asset
66 583

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 10: RISK MANAGEMENT AND CLAIMS PAYABLE (CONTINUED) C. Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.

Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.

D. Primary Workers' Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2023-24 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million.

Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

E. Pollution Legal Liability Insurance
The City of Palm Desert participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Palm Desert. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

F. Property Insurance
The City of Palm Desert participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Palm Desert property is currently insured according to a schedule of covered property submitted by the City of Palm Desert to the Authority.

City of Palm Desert property currently has all-risk property insurance protection in the amount of $395,707,820.

There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

G. Crime Insurance
The City of Palm Desert purchases crime insurance coverage in the amount of $10,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. 67 584

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 10: RISK MANAGEMENT AND CLAIMS PAYABLE (CONTINUED) H. Special Event Tenant User Liability Insurance
The City or Palm Desert further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Palm Desert according to a schedule. The City of Palm Desert then pays for the insurance. The insurance is facilitated by the Authority.

I. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were no significant reductions in pooled or insured liability coverage in the fiscal year 2023-24.

NOTE 10: RISK MANAGEMENT AND CLAIMS PAYABLE (CONTINUED) J. Claims Payable
Estimates for all workers’ compensation and general liabilities up to the self-insured levels have been recorded as long-term liabilities.

Changes in claims liabilities during the past two years are as follows:

NOTE 11: DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years.

The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Pursuant to changes in August 1996, of IRC Section 457, in January 1997, the City established a trust in which all assets held by Nationwide Retirement Solutions, Inc. (NRS) and ICMA Retirement Corporation (ICMA) were placed. In June 2023, the City transitioned all 457 accounts from Nationwide and ICMA to Empower. The City does not have fiduciary responsibility for the plan assets held by NRS, ICMA, or Empower. The assets, all property and rights purchased with such amounts and all income attributable to such amounts are held in trust for the exclusive benefit of the participants and the beneficiaries. The assets are no longer the property of the City, and as such, are no longer subject to the claims of the City’s general creditors. As a result, the assets of the 457 plan in the amount of $15,873,542 held by NRS, ICMA, and Empower of the 457 Plan are not reflected in the City’s financial statements.

June 30, 2023 June 30, 2024
Claims payable - Beginning of year 564,473 $ 679,881 $
Incurred claims (including IBNR) and changes in estimates 299,98 5 3,987,107 Claims payments (184,577) (991,648)
Claims payable - End of year $ 679,881 $ 3,675,340
Claims payable - due in one year $ 224,361 $ 1,212,864
Claims payable - due in more than one year 455,520 2,462,476 $ 679,881 $ 3,675,340
68 585

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 12: PENSION PLAN
A. General Information about the Pension Plan:

Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.

The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits in effect at measurement date, are summarized as follows:

Employees Covered
At June 30, 2023, the following employees were covered by the benefit terms for all Plans:

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50-67 52-67
Monthly benefits, as a % of eligible compensation 2.0% - 2.7% 1.0% - 2.5% Required employee contribution rates 7%-8% 7.75%
Required employer contribution rates 13.20% 13.20%
Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 196 Inactive employees entitled to but not yet receiving benefits 97 Active employees 128
Total 421
69 586

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 12: PENSION PLAN (CONTINUED)
B. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
*The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

Discount Rate
The discount rate used to measure the total pension liability was 6.90% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.

Based on the testing of the Plans, the tests revealed the assets would not run out. Therefore, the current 6.90% discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund (PERF).

The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach.

Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

Valuation date June 30, 2022
Measurement date June 30, 2023
Actuarial cost method Entry age normal
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase Varies by Entry
Investment Rate of Return 7.0% Net of Pension Plan Investment and Administrative Expenses; includes Inflation
Mortality rate table * Derived using CalPERS' membership data for all funds 70 587

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 12: PENSION PLAN (CONTINUED)
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2014.

C. Changes in the Net Pension Liability
The changes in the net pension liability for the year ended June 30, 2024, with a measurement date of June 30, 2023, for the Miscellaneous Plan are as follows:

Assumed
Asset
Asset Class Allocation Real Return 1, 2
Global equity-cap-weighted 30.00% 4.54%
Global equity-non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability (Asset)
Balance at June 30, 2022 (Measurement Date) 153,948,561 $ 115,266,742 $ 38,681,819 $ Changes in the Year:

Service Cost 2,235,788 - 2,235,788
Interest on the Total Pension Liability 10,733,434 - 10,733,434 Difference between Expected and Actual Experience 4,624,824 - 4,624,824 Changes of Benefit Terms 105,799 - 105,799
Contributions - Employer - 4,539,654 (4,539,654)
Contributions - Employees - 868,122 (868,122)
Net Investment Income - 7,061,290 (7,061,290)
Benefit Payments including Refunds of Employee (8,480,159) (8,480,159) - Administrative expense - (84,762) 84,762
Net Changes 9,219,686 3,904,145 5,315,541
Balance at June 30, 2023 (Measurement Date) 163,168,247 $ 119,170,887 $ 43,997,360 $ Increase (Decrease)
71 588

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 12: PENSION PLAN (CONTINUED)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2024, the City recognized pension expense of $7,846,692. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
$4,669,126 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(5.90%) (6.90%) (7.90%)
Plan's net pension liability/(asset) 65,048,416 $ 43,997,360 $ 26,543,957 $ Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date 4,669,1 $ - 26 $ Change in assumptions 1,218,481 -
Differences between expected and actual experience 3,083,216 664,691 Net difference between projected and actual earnings on pension plan investments 5,426,297 -
Total 14,397,120 $ 664,691 $
Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2025 $ 3,033,435
2026 2,054,820
2027 3,818,537
2028 156,511
Total $ 9,063,303
72 589

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS
A. Plan Description
In addition to the pension benefits described in Note 11, the City provides other post-employment benefits (OPEB) through the California Employers’ Retiree Benefit Trust Fund (CERBT), an agent multiple-employer defined benefit healthcare plan administered by the California Public Employees’ Retirement System (CalPERS).

All full-time or part-time employees who meet the eligibility requirements for this program may continue their medical coverage through the CalPERS Health Plan and receive reimbursement from the City for a portion of the costs for the coverage. Separate financial statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North, 400 Q Street, Sacramento, California 95811, or by visiting the CalPERS website at www.calpers.ca.gov.

Employees Hired Prior to January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or after age 50 with at least 10 consecutive years of service with the City. Eligible employees must be covered under the CalPERS Health Plan at the time of retirement and elect to participate in the stipend program within 30 days of retirement.

The City’s contribution towards the coverage is based on years of service as follows:

Employees Hired On or After January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or after age 50 with at least 15 consecutive years of service with the City. Eligible employees must be covered under the CalPERS Health Plan at the time of retirement and elect to participate in the stipend program within 30 days of retirement. The stipend is discontinued when the retiree reaches Medicare eligibility age. The City’s contribution towards the coverage will be applied to the lowest cost plan and is based on age at retirement and consecutive years of service with the City as outlined in the following table:

Employees with at least 5 years of service, not meeting the eligibility requirements for the stipend program, who retire simultaneously from the City and CalPERS are eligible to continue medical coverage through the CalPERS Health Plan. The City is required to pay the CalPERS minimum employer contribution ($151 in 2023 and $157 in 2024) for these employees.

Consecutive Years of Service City's Contribution
With the City at Retirement Percentage
10 years of service 50%
11 years of service 55%
12 years of service 60%
13 years of service 65%
14 years of service 70%
15 or more years of service 75%
Age 15 16 17 18 19 20 21 22 23 24 25+
50 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
51 10% 15% 20% 25% 30% 35% 40% 45% 50% 50% 50%
52 20% 25% 30% 35% 40% 45% 50% 50% 50% 50% 50%
53 30% 35% 40% 45% 50% 50% 50% 50% 50% 50% 50%
54 40% 45% 50% 50% 50% 50% 50% 50% 50% 50% 50%
55+ 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
Consecutive Years of Service at Retirement
73 590

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Employees Hired On or After January 1, 2015
Employees are not eligible for either of the defined retiree health benefits plan but are instead enrolled in the City’s ICMA Retirement Health Savings Account. Employees have a mandatory 1% contribution to the Retirement Health Savings Plan and the City matches the 1% contribution. In addition, an employee can participate in the ICMA 401A Governmental Money Purchase Plan with a maximum pre-tax dollar contribution of 10%, with the City maximum match of 2%.

As of June 30, 2023, the date of the most recent actuarial valuation, the City's plan has 128 active employees.

Employees Covered - Plan membership, at June 30, 2023 valuation date, membership consisted of the following:

B. City Contributions to the Plan
City contributions to the Plan occur as benefits are paid to retirees and/or to the OPEB trust.

C. Net OPEB Liability/(Asset)
The City’s Net OPEB Liability/(Asset) was measured as of June 30, 2023 and the Total OPEB Liability used to calculate the Net OPEB Liability/(Asset) was determined by an actuarial valuation as of June 30, 2023.

Actuarial assumptions. The total OPEB liability was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

D. Discount Rate
GASB 75 requires a discount rate that reflects the following:
a) The long-term expected rate of return on OPEB plan investments – to the extent that the OPEB plan’s fiduciary net position (if any) is projected to be sufficient to make projected benefit payments and assets are expected to be invested using a strategy to achieve that return;
b) A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher – to the extent that the conditions in (a) are not met.

Inactive plan members or beneficiaries 94
Active plan members 128
Total 222
Inflation 2.50%
Salary Increase 3.00% per annum
Assumed Wage Inflation 3.00% per annum
Investment Rate of Return 5.50% per annum
Healthcare cost-trend rates Assumed to start at 6.5% and grade down by 0.5% each year to 3.9% in 2075.

Retirement Age 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 offered under PEMHCA.

Mortality Mortality rates used were those published by CalPERS under the 2021 Experience study and projected using the MacLeod Watts Scale 2022 applied generationally.
74 591

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
E. Changes in the Net OPEB Liability/(Asset)
The changes in the net OPEB liability/(asset) for the Plan are as follows:

F. Sensitivity of the Total OPEB Liability and Net OPEB Liability/(Asset) to Changes in the Discount Rate The following presents the total OPEB liability and net OPEB liability/(asset), as well as what the total OPEB liability and net OPEB liability/(asset) would be if they were calculated using a discount rate that is 1-percentage point lower (5.50 percent) or 1-percentage-point higher (6.50 percent) than the current discount rate:

G. Sensitivity of the Total OPEB Liability and Net OPEB Liability/(Asset) to Changes in the Health Care Cost Trend Rates
The following presents the total OPEB liability and net OPEB liability/(asset), as well as what the total OPEB liability and net OPEB liability/(asset) would be if they were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.70 percent decreasing to 4.70 percent) or 1-percentage-point higher (5.70 percent increasing to 6.70 percent) than the current healthcare cost trend rates:

Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability (Asset)
Balance at June 30, 2022 (Measurement Date) 21,875,949 $ 21,020,110 $ 855,839 $ Changes in the Year:

Service Cost 357,354 - 357,354
Interest on the Total OPEB Liability 1,193,064 - 1,193,064 Changes in Assumptions 170 - 170
Contributions - Employer - 1,108,988 (1,108,988)
Net Investment Income - 748,799 (748,799)
Benefit Payments (1,082,459) (1,082,459) -
Difference between expected and actual experience 1,327,257 - 1,327,257 Administrative Expenses - (6,023) 6,023
Net Changes 1,795,386 769,305 1,026,081
Balance at June 30, 2022 (Measurement Date) 23,671,335 $ 21,789,415 $ 1,881,920 $ Increase (Decrease)
Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(4.50%) (5.50%) (6.50%)
Net OPEB liability/(asset) 4,741,984 $ 1,881,920 $ (509,730) $ 1% Decrease Trend Rate 1% Increase
Net OPEB liability/(asset) $ (663,004) $ 1,881,920 $ 4,940,803 75 592

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
H. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB expense (revenue) of $1,935,943. As of fiscal year ended June 30, 2024, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

The City will recognize the contributions made subsequent to the measurement date totaling $1,306,991 in the next fiscal year. In addition, future recognition of the deferred resources is shown below:

NOTE 14: SPECIAL ASSESSMENT DEBT
Below is a summary of the changes in the special assessment bonds payable:

Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to the measurement date 1,306,991 $ - $ Change in assumptions 806,060 8,031
Differences between expected and actual experience 902,087 181,355 Net difference between projected and actual earnings on pension plan investments 1,998,704 -
Total 5,013,842 $ 189,386 $
Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2025 1,594,627 $
2026 783,228
2027 999,014
2028 98,106
2029 16,531
Thereafter 25,959
Total 3,517,465 $
Amount
Balance Balance Due Within
July 1, 2023 Additions Deletions June 30, 2024 One Year 2003 Assessment Revenue Bonds $ 780,000 $ 115,000 - $ $ 665,000 $ 120,000 CFD 2021-1 Special Tax Bonds Series 2021 14,955,000 305,000 - 14,650,000 315,000 CFD 2005-1 Special Tax Bonds Series 2021A 4,915,000 270,000 - 4,645,000 280,000 Section 29 Assessment District 2004-02
Limited Obligation Bonds Series 2021 15,715,000 785,000 - 14,930,000 815,000 Special Tax Bonds, Series 2024 11,600,000 - 11,600,000 - - Total $ 36,365,000 $ 11,600,000 $ 1,475,000 $ 46,490,000 $ 1,530,000 76 593

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED)
The City has Special Assessment Bonds Payable issued under the 1911 and 1915, Special Improvement Acts and the 1982 Mello-Roos Community Facilities Act (1982 Bonds). The City has no liability to 1911 Act bondholders until assessments have been collected from the property owner. Such liability is then recorded in the Custodial Funds.

Therefore, the 1911 Bonds are not recorded as liabilities in the accompanying financial statements.

The City also has no liability to the 1915 Act bondholders, or the bondholders of bonds issued under the 1982 Mello-Roos Community Facilities Act until assessments are collected on the tax rolls. However, the City may take certain actions to assume secondary liability for all or part of 1915 Act Bonds and the 1982 Bonds until such time as foreclosure proceedings are consummated.

Special assessment bonds payable, as described below, and are not recorded as long-term liabilities, as these obligations do not constitute a debt or obligation of the City.

A. 2003 Assessment Revenue Bonds
In June 2003, the Palm Desert Financing Authority issued $4,423,000 in 2003 Assessment Revenue Bonds. The proceeds were used to purchase three series of limited obligation improvement bonds issued by the City in connection with the financing and refinancing of certain improvements of benefit to property within the City’s Assessment District No. 94-2 (Sunterrace), Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility Undergrounding Assessment District No. 01-01. These bonds were issued under the 1915 Improvement Bond Act to provide funds for public improvements in the respective assessment districts.

Debt service requirements to maturity are as follows:

As of June 30, 2024, the principal amounts to be repaid by the Assessment District No. 01-1 to pay off the loans from the Financing Authority is $665,000.

B. Community Facilities District No. 2005-1, Series 2021A In July 2021, the City of Palm Desert Community Facilities District No. 2005-1 (University Park) Special Tax Refunding Bonds, Series 2021A (the “Bonds”) are being issued by City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the “District”) to provide funds: (i) to refund a portion of the District’s outstanding Special Tax Bonds, Series 2006A (the “2006 Bonds”); (ii) to fund a Reserve Account for the Bonds; and (iii) to pay costs incurred in connection with the issuance of the Bonds. The 2006 Bonds were issued for the purpose of providing funds to pay the costs of acquiring certain public facilities. The Bonds are special obligations of the District and are payable solely from Net Taxes (as defined herein), and the other assets pledged therefor under the Indenture, all as further described herein. Special Taxes (as defined herein) are to be levied according to the rate and method of apportionment approved by the City Council of the City and the qualified electors within the District. Interest rates vary from 3.00% to 4.00% with interest payable semi-annually on March 1 and September 1, with principal maturing annually on September 1.

Year Ending
June 30, Principal Interest Total
2025 120,000 $ 32,519 $ 152,519 $
2026 125,000 25,934 150,934
2027 135,000 18,947 153,947
2028 140,000 11,556 151,556
2029 145,000 3,897 148,897
Total 665,000 $ 92,853 $ 757,853 $
77 594

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED)
Debt service requirements to maturity are as follows:

C. Section 29 Assessment District (No 2004-02), Limited Obligation Improvement Bonds, Series 2021 In July 2021, the City of Palm Desert issued $16,400,000 Limited Obligation Improvement Bonds. The proceeds of the Bonds will be used to refund previously issued series 2017 bonds that financed certain infrastructure improvements within the City’s Section 29 Assessment District (No. 2004-02). The debt service on the bonds is to be paid by assessments secured on the property tax rolls of those properties benefiting from the improvements. interest ranging from 4.00% to 4.70% payable semiannually on March 2 and September 2. Bond maturities begin September 2, 2009 and continue annually through 2020. Term bonds in the amount of $2,525,000 carry an interest rate of 4.75% and mature September 2, 2022. Term bonds in the amount of $5,110,000 carry an interest rate of

5.05% and mature September 2, 2027. Term bonds in the amount of $14,930,000 carry an interest rate of 5.10% and mature September 2, 2037.

Debt service requirements to maturity are as follows:

D. Community Facilities District No. 2021-1, Series 2021 The City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2021 (the “Bonds”) are being issued by the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) to: (i) pay and defease a pro rata portion of outstanding Series 2006A Special Tax Bonds (the “CFD 2005-1 Pro Rata Bonds”) issued by, and secured by the special taxes of existing City of Palm Desert Community Facilities District No. 2005-1 (University Park) (“CFD No. 2005-1”); (ii) finance the acquisition of certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City and water and sewer facilities to be owned and operated by the Coachella Valley Water District; (iii) fund a reserve account for the Bonds; and (iv) pay costs of issuance for the Bonds. Interest rates vary from 3.00% to 4.00% with interest payable semi-annually on March 1 and September 1, with principal maturing annually on September 1.

Year Ending
June 30, Principal Interest Total
2025 $ 280,000 $ 178,800 $ 458,800
2026 290,000 168,800 458,800
2027 300,000 157,000 457,000
2028 315,000 144,700 459,700
2029 330,000 131,800 461,800
2030-2034 1,845,000 447,100 2,292,100
2035-2037 1,285,000 78,500 1,363,500
Total 4,645,000 $ $ 1,306,700 $ 5,951,700
Year Ending
June 30, Principal Interest Total
2024 815,000 $ $ 596,600 $ 1,411,600
2025 850,000 547,600 1,397,600
2026 880,000 513,000 1,393,000
2027 920,000 477,000 1,397,000
2028 955,000 439,500 1,394,500
2029-2033 5,380,000 1,581,000 6,961,000
2034-2038 5,130,000 420,800 5,550,800
Total 14,930,000 $ $ 4,575,500 $ 19,505,500
78 595

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED)
Debt service requirements to maturity are as follows:

E. Community Facilities District No. 2021-1, Series 2024 The City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2024 (the “Bonds”) are being issued by the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) to: (i) finance the acquisition of certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City of Palm Desert (the "City") and water and sewer facilities to be owned and operated by the Coachella Valley Water District ("CVWD"); (ii) fund a reserve account for the Bonds; and (iii) pay costs of issuance for the Bonds; and (iv) fund capitalized interest to pay debt service on the Bonds through and including September 1, 2024. Interest rates vary from 3.00% to 4.00% with interest payable semi-annually on March 1 and September 1, with principal maturing annually on September 1.

Year Ending
June 30, Principal Interest Total
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 355,000 513,075 868,075
2030-2034 1,940,000 2,388,925 4,328,925
2035-2039 2,335,000 1,980,900 4,315,900
2040-2044 2,835,000 1,465,100 4,300,100
2045-2049 3,445,000 839,500 4,284,500
2050-2052 2,420,000 147,800 2,567,800
Total 14,650,000 $ $ 9,489,600 $ 24,139,600
Year Ending
June 30, Principal Interest Total
2025 - $ 531,975 $ 531,975 $
2026 40,000 570,825 610,825
2027 50,000 568,913 618,913
2028 65,000 566,469 631,469
2029 80,000 563,388 643,388
2030-2034 680,000 2,744,475 3,424,475
2035-2039 1,225,000 2,530,644 3,755,644
2040-2044 2,005,000 2,132,125 4,137,125
2045-2049 3,045,000 1,506,375 4,551,375
2050-2054 4,410,000 583,000 4,993,000
Total 11,600,000 $ $ 12,298,188 $ 23,898,188
79 596

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED)
F. Bond Reserve Requirements
At June 30, 2024, the fund balance reserve requirements and actual reserve balances were as follows:

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, 2024, were as follows:

Requirement Actual
2003 Financing Authority Revenue Bonds $ 153,947 $ 153,947 CFD 2021-1 Special Tax Bonds, Series 2021 868,775 868,775 CFD 2005-1 Special Tax Bonds, Series 2021A 461,800 461,800 Section 29 Assessment District 2004-02
Limited Obligation Bonds Series 2021 1,411,600 1,411,600 Special Tax Bonds, Series 2024 1,021,147 1,021,147
General Fund
Prop A Fire
Tax
Housing
Asset Fund
Housing
Authority
Restricted
Capital Project
Fund Total
Nonspendable:

Inventory $ - $ - $ - $ - $ 13,710 - $ $ 13,710
Prepaid costs and deposits 583,470 - 660 - 67,090 - 651,220 994,978 - - - - - 994,978
Advances 1,310,000 - - - - 1, - 310,000
Total Nonspendable 2,888,448 - 660 - 80,800 - 2,969,908 Restricted for:

Capital projects - - - 47, - 233,177 198,846 47,432,023 Debt service - - - - 142,430 - 142,430
Low income housing - 51, - 941,054 5,222,230 4,520,132 - 61,683,416 Public facilities - - - - 4,590,140 - 4,590,140
Public safety 22, - 353,727 - - 2,718,105 - 25,071,832
Special programs - - - - 7,657,582 - 7,657,582
Street related purposes - - - - 29,088,612 - 29,088,612 Total Restricted 22, - 353,727 51,941,054 5,222,230 47,233,177 48,915,847 175,666,035 Committed to:

Aquatic center - - - - 2,776,523 - 2,776,523
Library - - - - 3,752,866 - 3,752,866
Capital asset replacement - - 11,875,488 - - 11, - 875,488 Capital improvement projects reserve 13,965,065 - - - - 13, - 965,065 Facilities maintenance reserve 1,858,919 - - - - 1, - 858,919 Liability reserve 4,000,000 - - - - 4, - 000,000
Other fund stability reserve 2,556,900 - - - - 2, - 556,900 Emergency/contingency reserve 16,623,972 - - - - 16, - 623,972 Employment benefits reserve 10,434,732 - - - - 10, - 434,732 Equipment replacement reserve 2,869,355 - - - - 2, - 869,355 Energy loan program - - - - 1,869,382 - 1,869,382
Total Committed 52,308,943 - 11,875,488 - 8,398,771 - 72,583,202 Assigned to:

General fund operating reserve 18,254,560 - - - - 18, - 254,560 Community contingency 444,000 - - - - - 444,000
Capital projects - - - - 9,699,897 - 9,699,897
Property acquisition - - - - 420,387 - 420,387
Public facilities - - - - 8,767,874 - 8,767,874
Special programs - - - - 614,323 - 614,323
Street related purposes - - - - 4,863,302 - 4,863,302
Total Assigned 18,698,560 - - - 24,365,783 - 43,064,343 Unassigned 52,457,702 - - - (445, - 505) 52,012,197
Totals $ 126,353,653 $ 22,353,727 $ 51,941,714 $ 17,097,718 $ 47,233,177 $ 81,315,696 $ 346,295,685 Notes and loans
Capital
Special Revenue Funds Projects Fund
Other
Governmental
Funds
80 597

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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 Contract Spent Remaining
Amount To Date Commitment
General Fund
Parks/Recreation $ 1,804,291 $ 1,000,901 $ 803,390
Tropical Storm Hilary maintenance and repair 1,320,248 314,092 1,006,156 Measure A
Bridge maintenance program 397,835 165,698 232,138
Traffic operations and capacity improvements 1,463,644 1,194,264 269,380 Intersection modifications - Highway 74 & Haystack Road, 373,245 - 373,245 Haystack traffic calming 206,930 5,348 201,583
CV link enhancement and slurry seal 1,903,952 1,903,952 - Capital Properties
Design and planning for North Sphere Regional Park 1,000,000 360,272 639,729 Haystack channel improvements 433,143 302,999 130,143
Housing Authority
City owned buildings improvments 3,481,631 3,133,295 348,336 Other Governmental Funds
Equipment ordered, vehicles 1,806,860 228,699 1,578,160 Architectural design and structural engineering services - Parkview Office Complex 1,142,400 424,373 718,027
Palm Desert Library New Building 642,865 146,648 496,218 $ 15,977,043 $ 7,276,588 $ 8,700,456
Project
81 598

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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 2023-24, 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 82 599

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2024, the SARDA sold land with a cost basis of $1,286,439 for a sales price of $4,600,000. 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, 2024, $4,600,000 has been remitted to the County of Riverside.

Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2024, 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, 2023 Additions Deletions June 30, 2024
Capital assets, not being depreciated:

Land $ 17,226,397 $ (1,286,439) - $ $ 15,939,958
Total capital assets, not being depreciated 17,226,397 (1,286,439) - 15,939,958 Total fuduciary fund capital assets 17,226,397 $ $ (1,286,439) - $ $ 15,939,958 Amount
Balance Balance Due Within
July 1, 2023 Additions Deletions June 30, 2024 One Year 2003 TARBs, $15,745,000 15,745,000 $ - $ $ 14,870,000 875,000 $ 910,000 $ 2017 A TARBs, $52,390,000 36,405,000 - 35,690,000 715,000 6,630,000 2017 B TARBs, $140,130,000 96,345,000 - 11, 84,670,000 675,000 5,585,000 2017 H-A TARBs, $7,365,000 5,025,000 - 4,570,000 455,000 475,000 2017 H-B TARBs, $45,815,000 6,195,000 - 6, - 195,000 -
Subtotal 159,715,000 - 19, 915,000 13,600,000 139,800,000 Add: Unamortized bond premium 4,639,243 - 3,996,060 643,183 - Less: Unamortized bond discount (1,467,878) - (93, (1,374,437) 441) - Total 162,886,365 $ - $ 20, $ 142,421,623 464,742 $ 13,600,000 $ 83 600

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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.

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
2025 910,000 $ 709,156 $ 1,619,156 $
2026 1,145,000 688,681 1,833,681
2027 1,340,000 635,725 1,975,725
2028 1,405,000 573,750 1,978,750
2029 1,475,000 503,500 1,978,500
2030-2033 8,595,000 1,332,500 9,927,500
Total 14,870,000 $ 4,443,312 $ 19,313,312 $
84 601

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2024, the outstanding principal balance on the bonds $35,690,000.

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, 2024, the outstanding principal balance on the bonds is $84,670,000.

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
2025 6,630,000 $ 1,618,750 $ 8,248,750 $
2026 6,910,000 1,280,250 8,190,250
2027 5,245,000 976,375 6,221,375
2028 5,495,000 707,875 6,202,875
2029 4,055,000 469,125 4,524,125
2030-2031 7,355,000 372,125 7,727,125
Total 35,690,000 $ 5,424,500 $ 41,114,500 $
Year Ending
June 30, Principal Interest Total
2025 5,585,000 $ 3,160,009 $ 8,745,009 $
2026 5,710,000 2,979,956 8,689,956
2027 8,060,000 2,751,156 10,811,156
2028 4,790,000 2,531,319 7,321,319
2029 5,055,000 2,355,872 7,410,872
2030-2034 32,035,000 8,321,231 40,356,231
2035-2039 21,420,000 1,738,463 23,158,463
2040-2042 2,015,000 130,794 2,145,794
Total 84,670,000 $ 23,968,799 $ 108,638,799 $
85 602

CITY OF PALM DESERT, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2024, the outstanding principal balance on the bonds is $4,570,000.

The future debt service requirements on the 2017 Series H-A Tax Allocation Refunding Bonds are as follows:

NOTE 19: SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through January 27, 2025, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2024, that required recognition or disclosure in these financial statements.

Year Ending
June 30, Principal Interest Total
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 585,000 87,144 672,144
2030-2033 1,925,000 99,641 2,024,641
Total 4,570,000 $ 806,360 $ 5,376,360 $
86 603
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
87 604

CITY OF PALM DESERT, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years
2024 2023 2022 2021 2020
Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019

TOTAL PENSION LIABILITY
Service cost $ 1,976,289 2,235,788 $ 2,042,043 $ 2,086,683 $ $ 1,973,971 Interest on total pension liability 10,122,299 10,733,434 10,005,168 9,645,145 9,261,660 Changes of benefit terms - 105,799 - - -
Changes of assumptions 4,699,855 - - - -
Difference between expected and actual experience (2,563,805) 4,624,824 116,967 533,373 1,762,387 Benefit payments, including refunds of employee
contributions (8,480,159) (7,723,744) (7,041,890) (6,540,485) (6,383,377) Net Change in Total Pension Liability 6,510,894 9,219,686 5,122,288 5,724,716 6,614,641 Total pension liability-beginning 147,437,667 153,948,561 142,315,379 136,590,663 129,976,022 Total Pension Liability-Ending (a) 153,948,561 163,168,247 147,437,667 142,315,379 136,590,663

PLAN FIDUCIARY NET POSITION
Contributions-employer 4,020,131 4,539,654 4,729,858 4,521,813 5,963,737 Contributions-employee 791,130 868,122 745,959 805,528 791,794 Net investment income (9,592,025) 7,061,290 24,010,711 5,102,524 6,322,815 Benefit payments, including refunds of employee
contributions (8,480,159) (7,723,744) (7,041,890) (6,540,485) (6,383,377) Net plan to plan resource movement - - - - -
Administrative expense (79,643) (84,762) (105,400) (143,465) (67,893) Other miscellaneous income/(expense) - - - - 222
Net Change in Fiduciary Net Position (12,584,151) 3,904,145 22,339,238 3,745,915 6,627,298 Plan Fiduciary Net Position-Beginning 127,850,893 115,266,742 105,511,655 101,765,740 95,138,442 Plan Fiduciary Net Position-Ending (b) 115,266,742 119,170,887 127,850,893 105,511,655 101,765,740 Net Pension Liability/(Asset) (a) - (b) $ 43,997,360 $ 38,681,819 $ 19,586,774 $ 36,803,724 $ 34,824,923 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 73.0% 74.9% 86.7% 74.1% 74.5%
Covered payroll $ 9,621,662 10,601,359 $ 10,386,791 $ 10,353,849 $ $ 9,807,088 Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 415.0% 402.0% 188.6% 355.5% 355.1%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:

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.

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. 88 605
2019 2018 2017 2016 2015
6/30/2018 6/30/2017 6/30/2016 6/29/2016 6/30/2015
$ 2,196,462 $ 2,204,265 $ 2,076,964 $ 2,125,437 $ 2,156,598 8,797,867 8,558,529 8,327,823 8,223,320 7,991,591
- - - - -
(1,148,708) 7,367,723 (2, - 091,348) -
(594,882) (1,895,482) (4,259,317) (2,378,254) -
(5,934,338) (5,401,531) (4,801,252) (4,597,025) (4,849,320) 3,316,401 10,833,504 1,344,218 1,282,130 5,298,869
126,659,621 115,826,117 114,481,899 113,199,769 107,900,900 129,976,022 126,659,621 115,826,117 114,481,899 113,199,769 5,407,412 5,303,371 4,257,322 4,065,411 3,320,450
812,447 828,467 870,981 878,171 995,504
7,555,653 8,800,663 448,184 1,682,498 11,290,314
(5,934,338) (5,401,531) (4,801,252) (4,597,025) (4,849,320) - (222) - - -
(136,651) (115,573) (47,263) (87,279) -
- (259,502) - - -
7,444,799 9,415,397 727,972 1,941,776 10,756,948
87,693,643 78,278,246 77,550,274 75,608,498 64,851,550
95,138,442 87,693,643 78,278,246 77,550,274 75,608,498
$ 38,965,978 34,837,580 $ 37,547,871 $ 36,931,625 $ 37,591,271 $

73.2% 69.2% 67.6% 67.7% 66.8%
$ 10,751,687 $ 10,684,238 $ 11,342,713 $ 11,448,621 $ 11,110,759 324.0% 364.7% 331.0% 322.6% 338.3%
89 606

CITY OF PALM DESERT, CALIFORNIA
Schedule of Changes in Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years 1
2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021

TOTAL OPEB LIABILITY
Service cost 357,354 $ 294,337 $ 378,897 $ 366,971
Interest on total pension liability 1,205,943 1,193,064 1,161,531 1,117,500 Changes of benefit terms - - (910,834) -
Changes of assumptions 1,691,792 170 1,053,761 -
Difference between expected and actual experience - 1,327,257 - - Benefit payments, including refunds of employee
contributions (1,082,459) (944,960) (819,968) (752,486) Net Change in Total OPEB Liability 2,247,112 1,795,386 863,387 731,985 Total OPEB Liability-Beginning 19, 21,875,949 18, 628,837 765,450 18,033,465 Total OPEB Liability-Ending (a) 21, 23,671,335 19, 875,949 628,837 18,765,450

PLAN FIDUCIARY NET POSITION
Contributions-employer 1,230,895 1,108,988 1,140,548 1,280,453 Net investment income (3,022,583) 748,799 3,878,532 977,487 Benefit payments, including refunds of employee
contributions (1,082,459) (944,960) (819,968) (752,486) Administrative expense (6,034) (6,023) (7,193) (9,045)
Other miscellaneous income/(expense) - - - -
Net Change in Fiduciary Net Position (2,742,682) 769,305 4,191,919 1,496,409 Plan fiduciary net position-beginning 23, 21,020,110 19, 762,792 570,873 18,074,464 Plan Fiduciary Net Position-Ending (b) 21, 21,789,415 23, 020,110 762,792 19,570,873 Net OPEB Liability/(Asset) (a) - (b) $ 1,881,920 $ 855,839 $ (4,133,955) $ (805,423) Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability 92.0% 96.1% 121.1% 104.3%
Covered-employee payroll $ 11,208,147 12,780,729 $ 10,881,697 $ $ 11,382,103 Plan Net OPEB Liability/(Asset) as a Percentage of
Covered-Employee Payroll 14.7% 7.6% -38.0% -7.1%
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only seven years are shown.

Benefit Changes : None
Changes of Assumptions : None
90 607
2020 2019 2018
6/30/2020 6/30/2019 6/30/2018
$ 369,299 $ 357,675 $ 346,417
1,256,431 1,199,747 1,144,106
- - -
- 2,552,767 -
- (4,066,457) -
(756,759) (696,845) (653,187)
(644,719) 860,577 837,336
18,678,184 17,817,607 16,980,271
18,033,465 18,678,184 17,817,607
2,408,260 1,381,501 1,255,960
1,226,966 843,319 902,331
(756,759) (696,845) (653,187)
(3,515) (7,371) (6,541)
(18,115) - -
2,874,952 1,502,489 1,498,563
15,199,512 13,697,023 12,198,460
18,074,464 15,199,512 13,697,023
$ 3, (40,999) $ 4, 478,672 $ 120,584
100.2% 81.4% 76.9%
$ 10,546,052 $ 10,741,786 $ 10,584,400
-0.4% 32.4% 38.9%
91 608
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92 609

CITY OF PALM DESERT, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
Covered/ Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contributions (Excess) Payroll Payroll 2024 $ 4,539,654 $ (4,669,126) $ (129,472) $ 11,030,033 42.3% 2023 4,574,753 (4,574,753) - 10,601,359 43.2%
2022 4,123,142 (4,123,142) - 9,621,662 42.9%
2021 4,936,652 (4,729,797) 206,855 10,386,791 45.5%
2020 4,736,668 (4,521,813) 214,855 10,353,849 43.7%
2019 4,225,204 (5,963,737) (1,738,533) 9,807,088 60.8%
2018 4,219,764 (5,396,908) (1,177,144) 10,751,687 50.2% 2017 3,550,127 (5,303,371) (1,753,244) 10,684,238 49.6% 2016 3,585,082 (4,257,322) (672,240) 11,342,713 37.5%
2015 3,393,171 (4,065,411) (672,240) 11,448,621 35.5%
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
2024 533,751 $ 1,306,991 $ (773,240) $ 15,090,207 $ 8.7% 2023 452,627 1,123,177 (670,550) 12,780,729 8.8%
2022 285,935 1,230,895 (944,960) 11,208,147 11.0%
2021 320,508 1,140,548 (820,040) 10,881,697 10.5%
2020 527,966 1,340,978 (813,012) 11,382,103 11.8%
2019 651,501 2,408,260 (1, 10,546,052 756,759) 22.8%
2018 684,656 1,381,501 (696,845) 10,741,786 12.9%
Note to Schedule:

Actuarial Cost Method
Amortization Valuation Method/Period
Asset Valuation Method Fair Value
Inflation 2.50%
Payroll Growth
Investment Rate of Return 5.50% per annum
Healthcare cost-trend rates
Retirement Age
Mortality
Miscellaneous Agent, Multiple-Employer Pension Plan
Single Employer OPEB Plan
June 30, 2022
Entry age normal
Level percentage of payroll, closed
Fair Value

2.50%
Varies by entry age and service

2.75%

6.9% net of pension investment and administrative expenses, including inflation.

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 Actuaries.

Entry Age Normal
Level percent of

3.00% per annum, in aggregate
Mortality rates used were those published by CalPERS under the 2017 Experience study and projected using the MacLeod Watts Scale 2018 applied generationally.

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.
93 610

CITY OF PALM DESERT, CALIFORNIA
Budgetary Comparison Schedule by Department
General Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Resources (Inflows):

Taxes
Property taxes $ 7,646,302 $ 7,646,302 $ 8,768,396 $ 1,122,094 Property transfer tax 1,100,426 1,100,426 918,983 (181,443) Property tax in lieu 5,000,000 5,000,000 5,419,392 419,392 Timeshare mitigation fee 1,711,324 3,311,324 1,789,418 (1,521,906) Sales tax 26,623,447 25,000,000 25,391,092 391,092
Business license tax 1,300,000 1,100,000 1,272,634 172,634 Job valuation fees 35,000 35,000 48,642 13,642
Transient occupancy tax 21,005,000 22,505,000 23,006,598 501,598 Franchises 3,200,000 3,200,000 3,727,659 527,659
Penalties and interest on taxes 40,000 40,000 68,169 28,169 Total Taxes 67,661,499 68,938,052 70,410,983 1,472,931
Licenses and Permits
Building permits 1,228,300 1,428,300 1,479,918 51,618
Grading permits 25,000 15,000 11,253 (3,747)
Encroachment permits 150,000 100,000 85,406 (14,594)
Miscellaneous permits - 800 925 125
Business regulatory permits 22,500 12,500 17,094 4,594
Golf cart permits 1,500 1,500 1,310 (190)
Valet parking permits 250 250 475 225
Total Licenses and Permits 1,427,550 1,558,350 1,596,381 38,031 Intergovernmental
State mandate cost - - 68,633 68,633
Motor vehicle in-lieu fees 24,000 50,000 62,620 12,620
Monthly parking bail 5,000 5,000 5,052 52
Reimbursement RDA costs 700,000 700,000 782,473 82,473
Other reimbursements 776,500 776,500 763,663 (12,837)
Total Intergovernmental 1,505,500 1,531,500 1,682,441 150,941 Rental Income 171,000 171,000 136,047 (34,953)
Charges for Services
Subdivision fees 500,000 500,000 492,062 (7,938)
Zoning fees 40,000 50,000 59,941 9,941
Plan check fees 307,768 407,768 471,287 63,519
Sale of maps and publications 5,000 2,500 7,340 4,840
Microfilm fees 500 500 2 (498)
Vehicle impact fee 625,000 625,000 696,611 71,611
Other fees 135,450 135,450 147,201 11,751
Total Charges for Services 1,613,718 1,721,218 1,874,444 153,226 Investment Earnings
Interest income 500,000 3,000,000 6,826,348 3,826,348
Interest on notes receivable 200,000 200,000 205,226 5,226 Total Investment Earnings 700,000 3,200,000 7,031,574 3,831,574 Fines and Forfeitures
Vehicle code fines 35,000 25,000 24,931 (69)
Municipal court fines 25,000 25,000 1,720 (23,280)
VICR fees 75,000 75,000 77,772 2,772
Total Fines and Forfeitures 135,000 125,000 104,423 (20,577) Miscellaneous
Code compliance 150,000 150,000 71,332 (78,668)
Certificate of compliance fee 500 500 250 (250)
Nuisance abatement tax 20,000 10,000 4,068 (5,932)
Abandoned vehicle abatement 50,000 50,000 31,207 (18,793) Other revenue 267,000 267,000 515,244 248,244
Total Miscellaneous 487,500 477,500 622,101 144,601
Transfers In 1,852,700 1,852,700 396,806 (1,455,894)
Proceeds from sale of capital asset - - 594,610 594,610 Amounts Available for Appropriations 75,554,467 79,575,320 84,449,810 4,874,490 For the Year Ended June 30, 2024
See Notes to Required Supplementary Information.
94 611

CITY OF PALM DESERT, CALIFORNIA
Budgetary Comparison Schedule by Department
General Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
For the Year Ended June 30, 2024
Charges to Appropriation (Outflow):

General Government
City Council 310,856 364,043 305,968 58,075
City Clerk 1,098,834 1,232,775 1,134,444 98,331
Legislative Advocacy 40,845 40,845 33,000 7,845
Elections 167,050 317,500 124,031 43,019
City Attorney 313,467 313,467 308,580 4,887
Legal Special Services 318,341 474,451 470,547 3,904
City Manager 1,371,083 2,699,620 2,588,316 111,304
Finance 2,443,261 2,384,251 2,206,100 178,151
Independent Audit 90,000 102,910 73,473 29,437
Human Resources 914,392 1,017,714 904,795 112,919
General Services 5,741,317 12,851,315 8,243,183 4,608,132 Information Technology 2,369,979 5,048,699 3,775,249 1,273,450 Unemployment Insurance 10,000 13,253 13,253 -
Insurance 1,149,000 996,648 991,648 5,000
Community Promotions 504,700 784,700 746,864 37,836
Marketing 1,963,471 2,053,968 1,958,430 95,538
Visitors Information Center 12,930 3,230 988 2,242
Economic Development Center 1,848,981 2,392,233 2,184,235 207,998 Code enforcement 847,877 1,028,119 915,643 112,476
Permit center 589,439 593,758 527,110 66,648
Contributions 1,592,721 1,732,871 1,656,113 76,758
Planning & Community Development 4,454,887 3,981,423 3,309,788 671,635 Total General Government 28,303,881 40,277,344 32,471,758 7,805,585 Public Safety
Police Services 21,519,523 21,637,523 20,909,026 728,497 Animal Regulation 362,000 382,000 364,087 17,913
Traffic Safety 1,237,105 1,439,518 1,370,907 68,611
Building and Safety 1,505,143 1,509,259 1,282,002 227,257 Community Safety 488,000 495,000 255,728 239,272
Total Public Safety 25,111,771 25,463,300 24,181,750 1,281,550 Parks, Recreation, and Culture
Civic Center Park 1,971,200 1,980,858 1,714,194 266,664 Park Maintenance 1,289,500 1,328,724 1,129,303 199,421
Landscaping Service 3,048,691 3,199,005 2,867,872 331,133 Total Parks, Recreation and Culture 6,309,391 6,508,587 5,711,369 797,218 Public Works
Administration 1,748,112 2,094,152 1,897,288 196,864
Street Maintenance 2,351,005 2,516,653 2,342,284 174,369 Street Resurfacing 25,000 25,000 - 25,000
Curb & Gutter 200,000 208,405 37,955 170,450
Corporate Yard 197,700 226,700 170,602 56,098
Auto Fleet / Equipment 337,500 470,403 417,528 52,875
Public Bldg - Opr/Maint. 1,324,051 1,158,107 988,206 169,901 Portola Community Center 194,500 194,500 169,640 24,860 Total Public Works 6,377,868 6,893,920 6,023,503 870,417 Capital Outlay 345,000 341,132 720,738 (379,606)
Debt service:

Interest and fiscal charges - - 7,008 (7,008)
Transfers Out 8,906,074 10,227,601 9,480,177 747,424
Contribution to Other Government - - 890,129 (890,129)
Total Charges to Appropriations 75,353,985 89,711,884 79,486,432 10,225,451 Net Change in Fund Balances $ 200,482 $ (10,136,564) 4,963,378 $ 15,099,941 Fund Balances-Beginning 120,916,512
Budgetary Fund Balance, June 30 $ 125,879,890
See Notes to Required Supplementary Information.
95 612

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Prop A Fire Tax
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Resources (Inflows)
Taxes $ 9,169,242 9,169,242 $ 11,402,490 $ $ 2,233,248
Assessments 2,400,000 2,400,000 2,154,150 (245,850)
Intergovernmental 1,200,000 1,200,000 1,437,276 237,276 Charges for services 2,900,000 2,900,000 4,158,057 1,258,057 Investment earnings 20,000 20,000 869,365 849,365
Transfers In 4,600,000 4,600,000 4,600,000 -
Amounts Available for Appropriations 20,289,242 20,289,242 24,621,338 4,332,096 Charges to Appropriation (Outflow)
Current:

Public safety 20,343,162 21,228,340 17,377,791 3,850,549 Capital outlay 4,972,262 4,460,000 628,451 4,343,811
Total Charges to Appropriations 24,803,162 26,200,602 18,006,242 8,194,360 Net Change in Fund Balances $ (4,513,920) $ (5,911,360) 6,615,096 $ 12,526,456 Fund Balances-Beginning 15,738,631
Fund Balances-Ending $ 22,353,727
96 613

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing Asset Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Resources (Inflows)
Charges for services $ - - $ 198,926 $ $ 198,926
Investment earnings 1,083,328 95,000 1,956,111 872,783
Miscellaneous - - 34,354 34,354
Amounts Available for Appropriations 95,000 1,083,328 2,189,391 1,106,063 Charges to Appropriation (Outflow)
Current:

Housing and redevelopment 443,650 10,233,336 157,355 10,075,981 Capital outlay 300,000 300,000 105,203 194,797
Total Charges to Appropriations 743,650 10,533,336 262,558 10,270,778 Net Change in Fund Balances $ (648,650) $ (9,450,008) 1,926,833 $ 11,376,841 Fund Balances-Beginning 50,014,881
Fund Balances-Ending $ 51,941,714
97 614

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing Authority
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Resources (Inflows)
Rental Income $ 9,068,266 9,068,266 $ 9,158,677 $ $ 90,411 Investment earnings 465,000 20,000 989,378 524,378
Amounts Available for Appropriations 9,088,266 9,533,266 10,148,055 614,789 Charges to Appropriation (Outflow)
Housing and redevelopment 10,769,155 15,650,683 11,854,770 3,795,913 Transfers out 941,044 941,044 452,997 488,047
Total Charges to Appropriations 11,710,199 16,591,727 12,307,767 4,283,960 Net Change in Fund Balances $ (2,621,933) $ (7,058,461) (2,159,712) $ 4,898,749 Fund Balances-Beginning 19,257,430
Fund Balances-Ending $ 17,097,718
98 615
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101
618

CITY OF PALM DESERT, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Pooled cash and investments $ 4,078,636 4,315 $ 23,344,068 $ $ 3,142,586 Receivables:

Accounts - - - -
Assessments - - - -
Loans - - - -
Interest - - - -
Deposits - - - -
Prepaid costs - - - -
Due from other governments 661 484,744 903,483 -
Advances to other funds - - - -
Property held for resale - - - -
Restricted assets:

Cash and investments with fiscal agents - - - -
Total Assets 4,976 4,563,380 24,247,551 3,142,586

LIABILITIES
Accounts payable 324,026 - 580,660 32,464
Accrued liabilities - - - -
Unearned revenue - - - -
Deposits payable - - - -
Due to other funds - - - -
Advances to other funds - - - -
Total Liabilities 324,026 - 580,660 32,464

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - 280,889 -
Total Deferred Inflows of Resources - 280,889 - -

FUND BALANCES (DEFICITS)
Nonspendable - - - -
Restricted 4,239,354 4,976 23,386,002 3,110,122
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total Fund Balances (Deficits) 4,976 4,239,354 23,386,002 3,110,122 Total Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits) $ 4,976 $ 4,563,380 $ 24,247,551 $ 3,142,586 Traffic Safety Gas Tax Measure A
Housing
Mitigation Fee
Special Revenue Funds
102
619

CITY OF PALM DESERT, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Pooled cash and investments
Receivables:

Accounts
Assessments
Loans
Interest
Deposits
Prepaid costs
Due from other governments
Advances to other funds
Property held for resale
Restricted assets:

Cash and investments with fiscal agents
Total Assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Advances to other funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
(Continued)
$ 866,922 - $ 216,183 $ $ 1,939,127
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- 205,857 - -
- - - -
- - - -
- - - -
866,922 205,857 216,183 1,939,127
- 144,634 10,572 5,500
- - - -
- - 175,852 -
- - - -
- 22,061 - -
- - - -
- 166,695 186,424 5,500
- - - -
- - - -
- - - -
866,922 39,162 29,759 1,933,627
- - - -
- - - -
- - - -
866,922 39,162 29,759 1,933,627
$ 866,922 205,857 $ 216,183 $ 1,939,127 $
New
Construction
Tax
Community
Development
Block Grant
Child Care
Program
Public Safety
Police Grants
Special Revenue Funds
103
620

CITY OF PALM DESERT, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Pooled cash and investments
Receivables:

Accounts
Assessments
Loans
Interest
Deposits
Prepaid costs
Due from other governments
Advances to other funds
Property held for resale
Restricted assets:

Cash and investments with fiscal agents
Total Assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Advances to other funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
$ 2,146,130 861,277 $ 606,215 $ $ 1,271,172
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
2,146,130 861,277 606,215 1,271,172
356,539 9,212 - 84,867
- - - -
- - - -
- - - -
- - - -
- - - -
356,539 9,212 - 84,867
- - - -
- - - -
- - - -
1,789,591 852,065 606,215 1,186,305
- - - -
- - - -
- - - -
1,789,591 852,065 606,215 1,186,305
$ 2,146,130 861,277 $ 606,215 $ 1,271,172 $
Planned
Drainage
Parks and
Recreational
Facilities Traffic Signals
Fire Facilities
Restoration
Special Revenue Funds
104
621

CITY OF PALM DESERT, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Pooled cash and investments
Receivables:

Accounts
Assessments
Loans
Interest
Deposits
Prepaid costs
Due from other governments
Advances to other funds
Property held for resale
Restricted assets:

Cash and investments with fiscal agents
Total Assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Advances to other funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
(Continued)
$ 1,720,780 3,534,217 $ 51,916 $ $ 3,184,862
- 66,073 - 252,065
1,147 - - -
975,973 - - -
41,996 - - -
- - - -
- - - 8,997
- - - -
- - - -
- - - 13,710
- - - -
2,739,896 3,600,290 51,916 3,459,634
22,000 20,805 20,184 658,004
- - - -
- 110,143 - 2,400
- - - -
- - - -
810,000 - - -
832,000 130,948 20,184 660,404
38,514 - - -
38,514 - - -
- - - 22,707
- 3,469,342 31,732 -
1,869,382 - - 2,776,523
- - - -
- - - -
1,869,382 3,469,342 31,732 2,799,230
$ 2,739,896 3,600,290 $ 51,916 $ 3,459,634 $
Recycling
Energy
Independence
Loan
Air Quality
Management
Aquatic
Center
Special Revenue Funds
105
622

CITY OF PALM DESERT, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Pooled cash and investments
Receivables:

Accounts
Assessments
Loans
Interest
Deposits
Prepaid costs
Due from other governments
Advances to other funds
Property held for resale
Restricted assets:

Cash and investments with fiscal agents
Total Assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Advances to other funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
$ 107,665 1,409,788 $ 2,686,247 $ $ 1,423,062
14,729 88,494 4,916 -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 30,544 -
- - - -
- - - -
- - - -
122,394 1,498,282 2,721,707 1,423,062
19,750 - 205,696 -
- - - 13,052
- - - -
- 3,780 - -
- - 11,557 -
- - - -
19,750 3,780 217,253 13,052
- - - -
- - - -
- - - -
102,644 1,494,502 2,504,454 1,410,010
- - - -
- - - -
- - - -
102,644 1,494,502 2,504,454 1,410,010
$ 122,394 1,498,282 $ 2,721,707 $ 1,423,062 $
Affordable
Housing
Cannabis
Compliance
El Paseo
Assessment
District
Various
Landscape
and Lighting
District
Special Revenue Funds
106
623

CITY OF PALM DESERT, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Pooled cash and investments
Receivables:

Accounts
Assessments
Loans
Interest
Deposits
Prepaid costs
Due from other governments
Advances to other funds
Property held for resale
Restricted assets:

Cash and investments with fiscal agents
Total Assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Advances to other funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
(Continued)
$ 139,814 - $ 773,392 $ $ 10,986,347
- - - 50,000
- - - -
- - - -
- - - -
- - - -
- - 20,460 -
- - - -
- - - -
- - - -
- - - -
139,814 - 793,852 11,036,347
9,565 9,565 105,934 664,790
- - 53,135 -
122,710 - - 251,273
- - - -
- 161,319 - -
- - - -
132,275 170,884 159,069 916,063
- - - -
- - - -
- - 20,460 -
7,539 - - -
- - - -
- - 614,323 10,120,284
- (170,884) - -
7,539 (170,884) 634,783 10,120,284
$ 139,814 - $ 793,852 $ 11,036,347 $
Capital
Projects
Reserve
Permanent
Local Housing
Allocation
Grant
Opioid
Settlement
Library
Services
Special Revenue Funds
107
624

CITY OF PALM DESERT, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Pooled cash and investments
Receivables:

Accounts
Assessments
Loans
Interest
Deposits
Prepaid costs
Due from other governments
Advances to other funds
Property held for resale
Restricted assets:

Cash and investments with fiscal agents
Total Assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Advances to other funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
$ 1,237,229 4,775,792 $ 10,605 $ $ 1,521,638
- - - -
- - - -
- - - -
- - - -
20,000 - - -
17,633 - - -
- - - -
- - - -
- - - -
- - - -
1,274,862 4,775,792 10,605 1,521,638
62,900 30,068 - 11,390
- - - -
- - - -
- - - -
- - - -
- - - -
62,900 30,068 - 11,390
- - - -
- - - -
37,633 - - -
- - - 1,510,248
- - - -
1,174,329 4,745,724 10,605 -
- - - -
1,211,962 4,745,724 10,605 1,510,248
$ 1,274,862 4,775,792 $ 10,605 $ 1,521,638 $
Drainage
Facilities
Economic
Development
Parks and
Recreational
Facilities
Art in Public
Places
Capital Projects Funds
108
625

CITY OF PALM DESERT, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Pooled cash and investments
Receivables:

Accounts
Assessments
Loans
Interest
Deposits
Prepaid costs
Due from other governments
Advances to other funds
Property held for resale
Restricted assets:

Cash and investments with fiscal agents
Total Assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Advances to other funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
(Continued)
$ 8,441,685 117,578 $ 2,184 $ $ 4,303,711
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - 17,814
2,399,202 - - -
- - - -
- - - -
10,840,887 117,578 2,184 4,321,525
3,257,947 - 243,049 568,659
- - - -
- - - -
- - - -
- - 33,756 -
- - - -
3,257,947 - 276,805 568,659
- - - -
- - - -
- - - -
- - - -
- - - 3,752,866
7,582,940 117,578 - -
- - (274,621) -
7,582,940 117,578 (274,621) 3,752,866
$ 10,840,887 117,578 $ 2,184 $ 4,321,525 $
Signalization Capital Golf Buildings Library
Capital Projects Funds
109
626

CITY OF PALM DESERT, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Pooled cash and investments
Receivables:

Accounts
Assessments
Loans
Interest
Deposits
Prepaid costs
Due from other governments
Advances to other funds
Property held for resale
Restricted assets:

Cash and investments with fiscal agents
Total Assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Due to other funds
Advances to other funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
Capital
Projects Funds
Debt Service
Funds
Total
Nonmajor
Funds
$ 141,221 198,807 $ $ 85,245,171
- - 476,277
1,016,007 - 1,017,154
- - 975,973
- - 41,996
- - 20,000
- - 47,090
1,334 - 1,644,437
- - 2,399,202
- - 13,710
- 2,671,678 2,671,678
1,158,562 2,870,485 94,552,688
125 2,671,639 10,130,544
- - 66,187
- - 662,378
- - 3,780
- - 228,693
- - 810,000
125 2,671,639 11,901,582
1,016,007 - 1,335,410
1,016,007 - 1,335,410
- - 80,800
142,430 198,846 48,915,847
- - 8,398,771
- - 24,365,783
- - (445,505)
142,430 198,846 81,315,696
$ 1,158,562 2,870,485 $ 94,552,688 $
City Highlands
Undergrounding
Special
Assessment
District
110
627
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
111
628

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes $ - - $ 3,469,376 $ $ 31,800
Special assessments collected - - - -
Licenses and permits - - - -
Intergovernmental revenues 2,811,135 - 121,088 -
Rental income - - - -
Charges for services - - - -
Investment earnings 237 243,147 1,226,499 169,971
Fines and forfeitures - 1,729 - -
Capital contributions - - - -
Miscellaneous - - - 30,000
Total revenues 1,966 3,054,282 4,816,963 231,771

EXPENDITURES
Current:

General government - - - -
Public safety - - - -
Parks, recreation and culture - - - -
Public works 3,638,431 - 153,447 -
Housing - - - 277,592
Library - - - -
Capital outlay - 2,875,899 - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 3,638,431 - 3,029,346 277,592
Excess (deficiency) of revenues
over (under) expenditures 1,966 (584,149) 1,787,617 (45,821)

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out (2,700) - - -
Total other financing sources (uses) (2,700) - - -
Net change in fund balances (734) (584,149) 1,787,617 (45,821) Fund balances-beginning 4,823,503 5,710 21,598,385 3,155,943 Fund balances (deficit)-ending $ 4,976 $ 4,239,354 $ 23,386,002 $ 3,110,122 Traffic Safety
Special Revenue Funds
Gas Tax Measure A
Housing
Mitigation Fee
112
629

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Capital contributions
Miscellaneous
Total revenues

EXPENDITURES
Current:

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

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) 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
Fund balances (deficit)-ending
(Continued)
$ 5 - $ 4,200 $ - $ 265,447
- - - -
- - - -
- 737,446 86,487 -
- - - -
- - - -
4 - 3,654 8,685 95,246
- - - -
- - - -
- - - -
97,854 737,446 95,172 360,693
- 612,664 - -
- - 86,487 -
- - - -
- - - -
- - - -
- - - -
- 124,782 - 5,911
- - - -
- - - -
- 737,446 86,487 5,911
97,854 - 8,685 354,782
- - - -
- - - -
- - - -
97,854 - 8,685 354,782
39,162 769,068 21,074 1,578,845
$ 39,162 $ 866,922 $ 29,759 $ 1,933,627
New
Construction
Tax
Special Revenue Funds
Community
Development
Block Grant
Child Care
Program
Public Safety
Police Grants
113
630

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Capital contributions
Miscellaneous
Total revenues

EXPENDITURES
Current:

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

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) 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
Fund balances (deficit)-ending
$ 54,470 $ 427,547 $ 50,640 $ 166,938
- - - -
- - - -
- - - -
- - - -
- - - -
9 47,972 2,047 30,041 86,848
- - - -
- - - -
- - - -
519,594 102,442 80,681 253,786
- - - -
- 147,724 - -
- - - -
- - - -
- - - -
- - - -
360,272 - - 622,933
- - - -
- - - -
360,272 147,724 - 622,933
159,322 (45,282) 80,681 (369,147)
- - - -
- - - (25,248)
- - - (25,248)
159,322 (45,282) 80,681 (394,395)
897,347 1,630,269 525,534 1,580,700
$ 1,789,591 852,065 $ 606,215 $ 1,186,305 $
Planned
Drainage
Parks and
Recreational
Facilities
Special Revenue Funds
Traffic Signals
Fire Facilities
Restoration
114
631

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Capital contributions
Miscellaneous
Total revenues

EXPENDITURES
Current:

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

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) 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
Fund balances (deficit)-ending
(Continued)
$ - - $ - $ $ -
5 - 4,510 - -
- - - -
- 145,630 51,055 -
- - - 55,032
- 466,258 - 906,765
9 179,202 0,020 1,969 55,398
- - - -
- - - -
- - - -
144,530 791,090 53,024 1,017,195
3 475,941 ,891 52,501 -
- - - -
- - - 2,768,686
- - - -
- - - -
- - - -
- - 1,080 326,471
3 - 8,000 - -
5 - 8,560 - -
100,451 475,941 53,581 3,095,157
44,079 315,149 (557) (2,077,962)
- - - 2,976,250
- - - -
- - - 2,976,250
44,079 315,149 (557) 898,288
3,154,193 1,825,303 32,289 1,900,942
$ 1,869,382 3,469,342 $ 31,732 $ 2,799,230 $
Special Revenue Funds
Recycling
Energy
Independence
Loan
Air Quality
Management
Aquatic
Center
115
632

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Capital contributions
Miscellaneous
Total revenues

EXPENDITURES
Current:

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

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) 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
Fund balances (deficit)-ending
$ - 1,005,446 $ - $ $ -
297,039 - 1,060,525 -
- - - -
- - - -
- - - -
- - - -
5 37,803 ,532 246,818 (537)
- - - -
- - - -
- - - 46,377
302,571 1,043,249 1,307,343 45,840
262,142 - - 1,760
- 2,916 - -
- - - -
- - 3,795,710 -
- - - 436,598
- - - -
- - - 120
- - - -
- - - -
262,142 2,916 3,795,710 438,478
40,429 1,040,333 (2,488,367) (392,638)
- - 110,000 452,997
- - - -
- - 110,000 452,997
40,429 1,040,333 (2,378,367) 60,359
6 454,169 2,215 4,882,821 1,349,651
$ 102,644 1,494,502 $ 2,504,454 $ 1,410,010 $
Special Revenue Funds
Affordable
Housing
Cannabis
Compliance
El Paseo
Assessment
District
Various
Landscape
and Lighting
District
116
633

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Capital contributions
Miscellaneous
Total revenues

EXPENDITURES
Current:

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

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) 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
Fund balances (deficit)-ending
(Continued)
$ - - $ - $ $ -
- - - -
- - - -
7 - 8,734 - -
- - - -
- - - -
5 2,716 ,051 14,357 682,681
- - - -
- - - -
- - - 312,321
83,785 2,716 14,357 995,002
- - - 700,000
- - - -
- - - 292,121
- - - -
7 78,734 8,734 - -
- - 606,561 -
- - - 1,926,338
- - - -
- - - -
78,734 78,734 606,561 2,918,459
5,051 (76,018) (592,204) (1,923,457)
- - 1,321,527 2,000,000
- (100,000) (94,540) (3,200,000)
- (100,000) 1,226,987 (1,200,000)
5,051 (176,018) 634,783 (3,123,457)
2 5,134 ,488 - 13,243,741
$ 7,539 (170,884) $ 634,783 $ 10,120,284 $
Special Revenue Funds
Permanent
Local Housing
Allocation
Grant
Opioid
Settlement
Library
Services
Capital
Projects
Reserve
117
634

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Capital contributions
Miscellaneous
Total revenues

EXPENDITURES
Current:

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

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) 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
Fund balances (deficit)-ending
$ - - $ - $ $ -
- - - -
- - - 394,251
219,836 - - -
113,550 - - -
- - - -
7 94,297 3,940 558 77,436
- - - -
- - - -
1 - ,500 - 9,207
94,297 408,826 558 480,894
450,466 - - -
- - - -
- - - 113,750
2 312,744 ,082 - -
206,911 - - -
- - - -
1 - 0,000 - 159,535
- - - -
- - - -
669,459 312,744 - 273,285
(260,633) (218,447) 558 207,609
- 3,200,000 - -
- - - -
- 3,200,000 - -
(260,633) 2,981,553 558 207,609
1,764,171 1,472,595 10,047 1,302,639
$ 1,211,962 4,745,724 $ 10,605 $ 1,510,248 $
Capital Projects Funds
Drainage
Facilities
Economic
Development
Parks and
Recreational
Facilities
Art in Public
Places
118
635

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Capital contributions
Miscellaneous
Total revenues

EXPENDITURES
Current:

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

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) 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
Fund balances (deficit)-ending
(Continued)
$ - - $ - $ $ -
- - - -
- - - -
- - - 4,000,000
- - - -
2,680,153 - - -
6,173 690,324 70,343 90,926
- - - -
- - - -
900,122 - - -
4,270,599 6,173 70,343 4,090,926
- - 164,235 -
- - - -
10,026,646 - - -
- - - -
- - - -
- - - -
- - 2,091,983 1,025,579
- - - -
- - - -
10,026,646 - 2,256,218 1,025,579
(5,756,047) 6,173 (2,185,875) 3,065,347
- - - -
- - - -
- - - -
(5,756,047) 6,173 (2,185,875) 3,065,347
111,405 13,338,987 1,911,254 687,519
$ 7,582,940 117,578 $ (274,621) $ 3,752,866 $
Capital Projects Funds
Signalization Capital Golf Buildings Library
119
636

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Capital contributions
Miscellaneous
Total revenues

EXPENDITURES
Current:

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

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) 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
Fund balances (deficit)-ending
Capital
Projects Funds
Debt Service
Funds
Total
Nonmajor
Funds
$ - - $ $ 5,525,864
131,442 - 1,543,516
- - 394,251
- - 8,251,411
- - 168,582
- - 4,053,210
4,879 8,743 4,482,976
- - 1,729
- 10,000,000 10,000,000
- - 1,299,493
10,008,743 136,321 35,721,032
15,506 - 2,739,106
- - 237,127
- - 13,201,203
- - 7,902,414
- - 1,078,569
- - 606,561
- 10,000,000 19,530,903
52,000 - 90,000
51,452 - 110,012
10,000,000 118,958 45,495,895
17,363 8,743 (9,774,863)
- - 10,060,774
- - (3,422,488)
- - 6,638,286
17,363 8,743 (3,136,577)
125,067 190,103 84,452,273
$ 142,430 198,846 $ 81,315,696 $
Special
Assessment
District
City Highlands
Undergrounding
120
637

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Traffic Safety
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ - - $ 237 $ $ 237
Fines and forfeitures 2,700 2,700 1,729 (971)
Total Revenues 2,700 2,700 1,966 (734)

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (2,700) (2,700) (2,700) -
Total Other Financing Sources (Uses) (2,700) (2,700) (2,700) - Net Change in Fund Balances $ - $ - (734) $ (734)
Fund Balances (Deficit)-Beginning 5,710
Fund Balances (Deficit)-Ending $ 4,976
121
638

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Gas Tax
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 2,716,001 2,716,001 $ 2,811,135 $ $ 95,134 Use of money and property 14,560 14,560 243,147 228,587 Total Revenues 2,730,561 2,730,561 3,054,282 323,721

EXPENDITURES
Current:

Public works 2,205,000 9,075,897 3,638,431 5,437,466
Total Expenditures 2,205,000 9,075,897 3,638,431 5,437,466 Net Change in Fund Balances $ 525,561 $ (6,345,336) (584,149) $ 5,761,187 Fund Balances (Deficit)-Beginning 4,823,503
Fund Balances (Deficit)-Ending $ 4,239,354
122
639

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure A
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 3,263,000 3,263,000 $ 3,469,376 $ $ 206,376
Intergovernmental 1,663,000 1,663,000 121,088 (1,541,912) Use of money and property 100,000 100,000 1,226,499 1,126,499 Total Revenues 5,026,000 5,026,000 4,816,963 (209,037)

EXPENDITURES
Current:

Public works 2,950,000 3,017,064 153,447 2,863,617
Capital outlay 17,733,824 11,209,925 2,875,899 14,857,925 Total Expenditures 14,159,925 20,750,888 3,029,346 17,721,542 Net Change in Fund Balances $ (9,133,925) $ (15,724,888) 1,787,617 $ 17,512,505 Fund Balances (Deficit)-Beginning 21,598,385
Fund Balances (Deficit)-Ending $ 23,386,002
123
640

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing Mitigation Fee
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 64,000 64,000 $ 31,800 $ $ (32,200)
Use of money and property 8,000 8,000 169,971 161,971
Miscellaneous - - 30,000 30,000
Total Revenues 72,000 72,000 231,771 159,771

EXPENDITURES
Housing 404,500 989,216 277,592 711,624
Total Expenditures 404,500 989,216 277,592 711,624
Net Change in Fund Balances $ (332,500) $ (917,216) (45,821) $ 871,395 Fund Balances (Deficit)-Beginning 3,155,943
Fund Balances (Deficit)-Ending $ 3,110,122
124
641

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Community Development Block Grant
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 418,663 418,663 $ 737,446 $ $ 318,783 Use of money and property 100 100 - (100)
Total Revenues 418,763 418,763 737,446 318,683

EXPENDITURES
General government 1,159,920 393,904 612,664 547,256
Capital outlay 329,544 - 124,782 204,762
Total Expenditures 393,904 1,489,464 737,446 752,018
Net Change in Fund Balances $ 24,859 $ (1,070,701) 1,070,701 - $ Fund Balances (Deficit)-Beginning 39,162
Fund Balances (Deficit)-Ending $ 39,162
125
642

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Child Care Program
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 90,000 90,000 $ 54,200 $ $ (35,800)
Use of money and property 4,000 4,000 43,654 39,654
Total Revenues 94,000 94,000 97,854 3,854

EXPENDITURES
Capital outlay 684,000 - - 684,000
Total Expenditures 684,000 - 684,000 -
Net Change in Fund Balances $ 94,000 $ (590,000) 97,854 $ 687,854 Fund Balances (Deficit)-Beginning 769,068
Fund Balances (Deficit)-Ending $ 866,922
126
643

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Public Safety Police Grants
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 200,000 200,000 $ 86,487 $ $ (113,513) Use of money and property 500 500 8,685 8,185
Total Revenues 200,500 200,500 95,172 (105,328)

EXPENDITURES
Public safety 142,125 234,000 86,487 55,638
Total Expenditures 234,000 142,125 86,487 55,638
Net Change in Fund Balances $ (33,500) $ 58,375 8,685 $ (49,690) Fund Balances (Deficit)-Beginning 21,074
Fund Balances (Deficit)-Ending $ 29,759
127
644

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual New Construction Tax
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 414,200 414,200 $ 265,447 $ $ (148,753)
Intergovernmental 3,724,907 3,724,907 - (3,724,907)
Use of money and property 8,000 8,000 95,246 87,246
Total Revenues 4,147,107 4,147,107 360,693 (3,786,414)

EXPENDITURES
Capital outlay 530,000 500,000 5,911 524,089
Total Expenditures 500,000 530,000 5,911 524,089
Net Change in Fund Balances $ 3,647,107 $ 3,617,107 354,782 $ (3,262,325) Fund Balances (Deficit)-Beginning 1,578,845
Fund Balances (Deficit)-Ending $ 1,933,627
128
645

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Planned Drainage
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 70,000 70,000 $ 54,470 $ $ (15,530)
Use of money and property 2,500 2,500 47,972 45,472
Total Revenues 72,500 72,500 102,442 29,942

EXPENDITURES
Public safety 500,000 263,138 147,724 352,276
Total Expenditures 263,138 500,000 147,724 352,276
Net Change in Fund Balances $ (190,638) $ (427,500) (45,282) $ 382,218 Fund Balances (Deficit)-Beginning 897,347
Fund Balances (Deficit)-Ending $ 852,065
129
646

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Parks and Recreational Facilities
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 175,000 175,000 $ 427,547 $ $ 252,547
Use of money and property 3,000 3,000 92,047 89,047
Total Revenues 178,000 178,000 519,594 341,594

EXPENDITURES
Capital outlay 1,000,000 - 360,272 639,728
Total Expenditures 1,000,000 - 360,272 639,728
Net Change in Fund Balances $ 178,000 $ (822,000) 159,322 $ 981,322 Fund Balances (Deficit)-Beginning 1,630,269
Fund Balances (Deficit)-Ending $ 1,789,591
130
647

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Traffic Signals
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 36,000 20,000 $ 50,640 $ $ 14,640
Use of money and property 500 500 30,041 29,541
Total Revenues 20,500 36,500 80,681 44,181

EXPENDITURES
Capital outlay 460,075 235,075 - 460,075
Total Expenditures 235,075 460,075 460,075 -
Net Change in Fund Balances $ (214,575) $ (423,575) 80,681 $ 504,256 Fund Balances (Deficit)-Beginning 525,534
Fund Balances (Deficit)-Ending $ 606,215
131
648

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Fire Facilities Restoration
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 116,100 116,100 $ 166,938 $ $ 50,838
Use of money and property 7,000 7,000 86,848 79,848
Total Revenues 123,100 123,100 253,786 130,686

EXPENDITURES
Capital outlay 1,734,849 645,600 622,933 1,111,916
Total Expenditures 645,600 1,734,849 622,933 1,111,916
Excess (Deficiency) of Revenues
Transfers out (25,248) - (25,248) -
Total Other Financing Sources (Uses) - (25,248) (25,248) - Net Change in Fund Balances $ (522,500) $ (1,636,997) (394,395) $ 1,242,602 Fund Balances (Deficit)-Beginning 1,580,700
Fund Balances (Deficit)-Ending $ 1,186,305
132
649

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Recycling
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 54,130 54,130 $ 145,630 $ $ 91,500
Charges for services 430,000 430,000 466,258 36,258
Use of money and property 15,000 15,000 179,202 164,202 Total Revenues 499,130 499,130 791,090 291,960

EXPENDITURES
General government 572,604 516,180 475,941 96,663
Total Expenditures 516,180 572,604 475,941 96,663
Net Change in Fund Balances $ (17,050) $ (73,474) 315,149 $ 388,623 Fund Balances (Deficit)-Beginning 3,154,193
Fund Balances (Deficit)-Ending $ 3,469,342
133
650

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Energy Independence Loan
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Assessments $ 300,000 300,000 $ 54,510 $ $ (245,490)
Use of money and property 6,200 5,000 90,020 83,820
Total Revenues 305,000 306,200 144,530 (161,670)

EXPENDITURES
General government 15,000 15,000 3,891 11,109
Debt service:

Principal 130,000 130,000 38,000 92,000
Interest and fiscal charges 83,480 83,480 58,560 24,920 Total Expenditures 228,480 228,480 100,451 128,029
Net Change in Fund Balances $ 76,520 $ 77,720 44,079 $ (33,641) Fund Balances (Deficit)-Beginning 1,825,303
Fund Balances (Deficit)-Ending $ 1,869,382
134
651

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Air Quality Management
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 73,400 73,400 $ 51,055 $ $ (22,345) Use of money and property 50 50 1,969 1,919
Total Revenues 73,450 73,450 53,024 (20,426)

EXPENDITURES
General government 74,000 63,000 52,501 21,499
Capital outlay 15,830 15,830 1,080 14,750
Total Expenditures 78,830 89,830 53,581 36,249
Net Change in Fund Balances $ (5,380) $ (16,380) (557) $ 15,823 Fund Balances (Deficit)-Beginning 32,289
Fund Balances (Deficit)-Ending $ 31,732
135
652

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Aquatic Center
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Rental income $ - - $ 55,032 $ $ 55,032
Charges for services 648,000 648,000 906,765 258,765
Use of money and property 16,000 16,000 55,398 39,398
Total Revenues 664,000 664,000 1,017,195 353,195

EXPENDITURES
Current:

Parks and recreation 2,640,250 2,974,671 2,768,686 205,985 Capital outlay 1,576,286 1,250,000 326,471 1,249,815
Total Expenditures 3,890,250 4,550,957 3,095,157 1,455,800 Excess (Deficiency) of Revenues
Over (Under) Expenditures (3,226,250) (3,886,957) (2,077,962) 1,808,995

OTHER FINANCING SOURCES (USES)
Transfers in 2,976,250 2,976,250 2,976,250 -
Total Other Financing Sources (Uses) 2,976,250 2,976,250 2,976,250 - Net Change in Fund Balances $ (250,000) $ (910,707) 898,288 $ 1,808,995 Fund Balances (Deficit)-Beginning 1,900,942
Fund Balances (Deficit)-Ending $ 2,799,230
136
653

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Cannabis Compliance
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 934,700 1,210,000 $ 1,005,446 $ $ 70,746
Use of money and property - - 37,803 37,803
Total Revenues 1,210,000 934,700 1,043,249 108,549

EXPENDITURES
Public safety 5,000 - 2,916 2,084
Total Expenditures - 5,000 2,916 2,084
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,210,000 929,700 1,040,333 110,633

OTHER FINANCING SOURCES (USES)
Transfers out (1,195,000) (1,200,000) - 1,195,000
Total Other Financing Sources (Uses) (1,200,000) (1,195,000) - 1,195,000 Net Change in Fund Balances $ 10,000 $ (265,300) 1,040,333 $ 1,305,633 Fund Balances (Deficit)-Beginning 454,169
Fund Balances (Deficit)-Ending $ 1,494,502
137
654

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual El Paseo Assessment District
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Assessments $ 411,770 250,000 $ 297,039 $ $ (114,731)
Use of money and property - - 5,532 5,532
Total Revenues 250,000 411,770 302,571 (109,199)

EXPENDITURES
General government 330,000 250,000 262,142 67,858
Total Expenditures 250,000 330,000 262,142 67,858
Net Change in Fund Balances $ - $ 81,770 40,429 $ (41,341) Fund Balances (Deficit)-Beginning 62,215
Fund Balances (Deficit)-Ending $ 102,644
138
655

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Various Landscape and Lighting District
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Assessments $ 933,475 895,475 $ 1,060,525 $ $ 127,050
Use of money and property 7,000 7,000 246,818 239,818
Total Revenues 902,475 940,475 1,307,343 366,868

EXPENDITURES
Public works 4,286,986 1,825,362 3,795,710 491,276
Total Expenditures 1,825,362 4,286,986 3,795,710 491,276 Excess (Deficiency) of Revenues
Over (Under) Expenditures (922,887) (3,346,511) (2,488,367) 858,144

OTHER FINANCING SOURCES (USES)
Transfers in 110,000 110,000 110,000 -
Total Other Financing Sources (Uses) 110,000 110,000 110,000 - Net Change in Fund Balances $ (812,887) $ (3,236,511) (2,378,367) $ 858,144 Fund Balances (Deficit)-Beginning 4,882,821
Fund Balances (Deficit)-Ending $ 2,504,454
139
656

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Affordable Housing
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ - - $ (537) $ $ (537)
Miscellaneous - - 46,377 46,377
Total Revenues - - 45,840 45,840

EXPENDITURES
General government 1,900 - 1,760 140
Housing 474,945 503,922 436,598 38,347
Capital outlay 1,000 1,000 120 880
Total Expenditures 504,922 477,845 438,478 39,367
Excess (Deficiency) of Revenues
Over (Under) Expenditures (504,922) (477,845) (392,638) 85,207

OTHER FINANCING SOURCES (USES)
Transfers in 504,922 504,922 452,997 (51,925)
Total Other Financing Sources (Uses) 504,922 504,922 452,997 (51,925) Net Change in Fund Balances $ - $ 27,077 60,359 $ 33,282 Fund Balances (Deficit)-Beginning 1,349,651
Fund Balances (Deficit)-Ending $ 1,410,010
140
657

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Permanent Local Housing Allocation Grant
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 250,000 250,000 $ - $ $ (250,000)
Use of money and property - - 2,716 2,716
Total Revenues 250,000 250,000 2,716 (247,284)

EXPENDITURES
Housing 150,000 - 78,734 71,266
Total Expenditures 150,000 - 78,734 71,266
Excess (Deficiency) of Revenues
Over (Under) Expenditures 250,000 100,000 (76,018) (176,018)

OTHER FINANCING SOURCES (USES)
Transfers out (100,000) (250,000) (100,000) -
Total Other Financing Sources (Uses) (250,000) (100,000) (100,000) - Net Change in Fund Balances $ - $ (176,018) - $ (176,018) Fund Balances (Deficit)-Beginning 5,134
Fund Balances (Deficit)-Ending $ (170,884)
141
658

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Opioid Settlement
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ - - $ 78,734 $ $ 78,734
Use of money and property - - 5,051 5,051
Total Revenues - - 83,785 83,785

EXPENDITURES
Housing 101,000 - 78,734 22,266
Total Expenditures 101,000 - 78,734 22,266
Excess (Deficiency) of Revenues
Over (Under) Expenditures (101,000) - 5,051 106,051
Net Change in Fund Balances $ (101,000) - $ 5,051 $ 106,051 Fund Balances (Deficit)-Beginning 2,488
Fund Balances (Deficit)-Ending $ 7,539
142
659

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Library Services
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ - - $ 14,357 $ $ 14,357
Total Revenues - - 14,357 14,357

EXPENDITURES
Library 1,255,002 - 606,561 648,441
Total Expenditures 1,255,002 - 606,561 648,441
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,255,002) - (592,204) 662,798

OTHER FINANCING SOURCES (USES)
Transfers in 1,321,527 - 1,321,527 -
Transfers out (94,540) - (94,540) -
Total Other Financing Sources (Uses) - 1,226,987 1,226,987 - Net Change in Fund Balances $ (28,015) - $ 634,783 $ 662,798 Fund Balances (Deficit)-Beginning -
Fund Balances (Deficit)-Ending $ 634,783
143
660

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Restricted Capital Project Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Resources (Inflows)
Investment earnings $ 250,000 250,000 $ 3,178,677 $ $ 2,928,677 Amounts Available for Appropriations 250,000 250,000 3,178,677 2,928,677 Charges to Appropriation (Outflow)
General government - - 1,540 (1,540)
Public safety - 1,900,000 1,653,302 246,698
Public works 900,000 10,180,303 176,739 10,003,564
Capital outlay 31,535,153 31,177,730 3,524,809 28,010,344 Transfers out - - 1,800,000 (1,800,000)
Total Charges to Appropriations 32,077,730 43,615,456 7,156,390 36,459,066 Net Change in Fund Balances $ (31,827,730) $ (43,365,456) (3,977,713) $ 39,387,743 Fund Balances-Beginning 51,210,890
Fund Balances-Ending $ 47,233,177
144
661

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Capital Projects Reserve
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ 10,000 10,000 $ 682,681 $ $ 672,681 Miscellaneous - - 312,321 312,321
Total Revenues 10,000 10,000 995,002 985,002

EXPENDITURES
Current:

General government 3,900,000 3,400,000 700,000 3,200,000 Parks and recreation 574,516 3,150,000 292,121 282,395
Capital outlay 5,918,796 3,630,578 1,926,338 3,992,458
Total Expenditures 10,180,578 10,393,312 2,918,459 7,474,853 Excess (Deficiency) of Revenues
Over (Under) Expenditures (10,170,578) (10,383,312) (1,923,457) 8,459,855

OTHER FINANCING SOURCES (USES)
Transfers in 200,000 200,000 2,000,000 1,800,000
Transfers out (3,200,000) (3,200,000) (3,200,000) -
Total Other Financing Sources (Uses) (3,000,000) (3,000,000) (1,200,000) 1,800,000 Net Change in Fund Balances $ (13,170,578) $ (13,383,312) (3,123,457) $ 10,259,855 Fund Balances (Deficit)-Beginning 13,243,741
Fund Balances (Deficit)-Ending $ 10,120,284
145
662

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Drainage Facilities
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ 20,000 20,000 $ 94,297 $ $ 74,297 Total Revenues 20,000 20,000 94,297 74,297

EXPENDITURES
Public works 3,824,279 3,200,000 312,744 3,511,535
Total Expenditures 3,200,000 3,824,279 312,744 3,511,535 Excess (Deficiency) of Revenues
Over (Under) Expenditures (3,180,000) (3,804,279) (218,447) 3,585,832

OTHER FINANCING SOURCES (USES)
Transfers in 3,200,000 3,200,000 3,200,000 -
Total Other Financing Sources (Uses) 3,200,000 3,200,000 3,200,000 - Net Change in Fund Balances $ 20,000 $ (604,279) 2,981,553 $ 3,585,832 Fund Balances (Deficit)-Beginning 1,764,171
Fund Balances (Deficit)-Ending $ 4,745,724
146
663

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Economic Development
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 15,000 15,000 $ 219,836 $ $ 204,836 Rental income 64,543 64,543 113,550 49,007
Use of money and property 10,000 10,000 73,940 63,940
Miscellaneous 1,500 - 1,500 -
Total Revenues 89,543 91,043 408,826 317,783

EXPENDITURES
General government 1,208,990 492,952 450,466 758,524
Public works 3,600 3,600 2,082 1,518
Housing 298,000 234,000 206,911 91,089
Capital outlay 15,000 - 10,000 5,000
Total Expenditures 730,552 1,525,590 669,459 856,131
Net Change in Fund Balances $ (641,009) $ (1,434,547) (260,633) $ 1,173,914 Fund Balances (Deficit)-Beginning 1,472,595
Fund Balances (Deficit)-Ending $ 1,211,962
147
664

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Parks and Recreational Facilities
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ 100 100 $ 558 $ $ 458
Total Revenues 100 100 558 458
Excess (Deficiency) of Revenues
Over (Under) Expenditures 100 100 558 458
Net Change in Fund Balances $ 100 $ 100 558 $ 458
Fund Balances (Deficit)-Beginning 10,047
Fund Balances (Deficit)-Ending $ 10,605
148
665

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Art in Public Places
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Licenses and permits $ 328,275 328,275 $ 394,251 $ $ 65,976 Use of money and property 400 400 77,436 77,036
Miscellaneous 164,790 164,790 9,207 (155,583)
Total Revenues 493,465 493,465 480,894 (12,571)

EXPENDITURES
Parks and recreation 252,870 204,370 113,750 139,120
Capital outlay 673,557 390,000 159,535 514,022
Total Expenditures 594,370 926,427 273,285 653,142
Excess (Deficiency) of Revenues
Over (Under) Expenditures (100,905) (432,962) 207,609 640,571

OTHER FINANCING SOURCES (USES)
Transfers out (100,000) (100,000) - 100,000
Total Other Financing Sources (Uses) (100,000) (100,000) 100,000 - Net Change in Fund Balances $ (200,905) $ (532,962) 207,609 $ 740,571 Fund Balances (Deficit)-Beginning 1,302,639
Fund Balances (Deficit)-Ending $ 1,510,248
149
666

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Signalization
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ 300 300 $ 6,173 $ $ 5,873
Total Revenues 300 300 6,173 5,873
Excess (Deficiency) of Revenues
Over (Under) Expenditures 300 300 6,173 5,873
Net Change in Fund Balances $ 300 $ 300 6,173 $ 5,873
Fund Balances (Deficit)-Beginning 111,405
Fund Balances (Deficit)-Ending $ 117,578
150
667

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Capital Golf
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services $ 2,587,865 2,587,865 $ 2,680,153 $ $ 92,288 Use of money and property 30,000 30,000 690,324 660,324 Miscellaneous - - 900,122 900,122
Total Revenues 2,617,865 2,617,865 4,270,599 1,652,734

EXPENDITURES
Parks and recreation 13,701,793 1,850,000 10,026,646 3,675,147 Total Expenditures 1,850,000 13,701,793 10,026,646 3,675,147 Excess (Deficiency) of Revenues
Over (Under) Expenditures 767,865 (11,083,928) (5,756,047) 5,327,881 Net Change in Fund Balances $ 767,865 $ (11,083,928) (5,756,047) $ 5,327,881 Fund Balances (Deficit)-Beginning 13,338,987
Fund Balances (Deficit)-Ending $ 7,582,940
151
668

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Buildings
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ 5,000 5,000 $ 70,343 $ $ 65,343 Total Revenues 5,000 5,000 70,343 65,343

EXPENDITURES
Current:

General government 450,000 450,000 164,235 285,765
Parks and recreation 100,000 100,000 - 100,000
Capital outlay 2,787,567 1,400,000 2,091,983 695,584
Total Expenditures 1,950,000 3,337,567 2,256,218 1,081,349 Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,945,000) (3,332,567) (2,185,875) 1,146,692 Net Change in Fund Balances $ (1,945,000) $ (3,332,567) (2,185,875) $ 1,146,692 Fund Balances (Deficit)-Beginning 1,911,254
Fund Balances (Deficit)-Ending $ (274,621)
152
669

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Library
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ - - $ 4,000,000 $ $ 4,000,000
Use of money and property - - 90,926 90,926
Total Revenues - 4,090,926 - 4,090,926

EXPENDITURES
Capital outlay 1,737,797 - 1,025,579 712,218
Total Expenditures 1,737,797 - 1,025,579 712,218
Net Change in Fund Balances $ (1,737,797) - $ 3,065,347 $ 4,803,144 Fund Balances (Deficit)-Beginning 687,519
Fund Balances (Deficit)-Ending $ 3,752,866
153
670

CITY OF PALM DESERT, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual City Highlands Undergrounding
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Assessments $ 120,391 120,391 $ 131,442 $ $ 11,051
Use of money and property 300 300 4,879 4,579
Total Revenues 120,691 120,691 136,321 15,630

EXPENDITURES
Current:

General government 15,684 16,684 15,506 178
Debt service:

Principal 51,000 52,000 52,000 -
Interest and fiscal charges 51,709 51,709 51,452 257
Total Expenditures 119,393 119,393 118,958 435
Net Change in Fund Balances $ 1,298 $ 1,298 17,363 $ 16,065 Fund Balances (Deficit)-Beginning 125,067
Fund Balances (Deficit)-Ending $ 142,430
154
671

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Total Internal
Service
Funds
ASSETS
Current assets:

Cash and investments $ 5,928,085 $ 2,517,471 $ 8,445,556 Total current assets 2,517,471 5,928,085 8,445,556
Noncurrent:

Nondepreciable capital assets 11,821 - 11,821
Depreciable capital assets, net 2,869,354 - 2,869,354
Total noncurrent assets - 2,881,175 2,881,175
Total Assets 8,809,260 2,517,471 11,326,731

LIABILITIES
Current liabilities:

Accounts payable 23,151 - 23,151
Compensated absences - 500,000 500,000
Total current liabilities 500,000 23,151 523,151
Noncurrent liabilities:

Compensated absences 2,172,687 - 2,172,687
Total noncurrent liabilities 2,172,687 - 2,172,687
Total Liabilities 23,151 2,672,687 2,695,838

NET POSITION
Net invested in capital assets - 2,881,175 2,881,175
Unrestricted (155,216) 5,904,934 5,749,718
Total Net Position $ 8,786,109 $ (155,216) $ 8,630,893
Equipment
Replacement
Compensation
Benefits
155
672

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2024
Total Internal
Service
Funds

OPERATING EXPENSES
General and administrative $ 283,100 - $ $ 283,100
Maintenance and operations - 317,148 317,148
Depreciation - 736,211 736,211
Total Operating Expenses 1,053,359 283,100 1,336,459
Operating Income (Loss) (1,053,359) (283,100) (1,336,459)

NONOPERATING REVENUES (EXPENSES)
Interest revenue 127,884 347,485 475,369
Gain (loss) on disposal of capital assets - (63,374) (63,374) Total Nonoperating Revenues (Expenses) 284,111 127,884 411,995 Income (Loss) Before Capital Contributions and Transfers (769,24 (155,216) 8) (924,464) Transfers in 272,399 119,788 392,187
Change in Net Position (649,460) 117,183 (532,277)
Net Position-Beginning (272,399) 9,435,569 9,163,170
Net Position-Ending $ 8,786,109 $ (155,216) $ 8,630,893 Equipment
Replacement
Compensation
Benefits
156
673

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and service providers $ (211,441) (292,001) $ $ (503,442) Net Cash Provided By (Used For)
Operating Activities (292,001) (211,441) (503,442)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds 272,399 119,788 392,187
Net Cash Provided By (Used For)
Noncapital Financing Activities 119,788 272,399 392,187

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets - (1,071,302) (1,071,302) Net Cash Provided By (Used For)
Capital and Related Financing Activities (1,071,302) - (1,071,302)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 127,884 347,485 475,369
Net Cash Provided By (Used For)
Investing Activities 347,485 127,884 475,369
Net Increase (Decrease) In
Cash and Cash Equivalents (896,030) 188,842 (707,188)
Cash and Cash Equivalents-Beginning 2,328,629 6,824,115 9,152,744 Cash and Cash Equivalents-Ending $ 5,928,085 $ 2,517,471 $ 8,445,556

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) $ (283,100) (1,053,359) $ $ (1,336,459) Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 736,211 - 736,211
(Increase) decrease in prepaid items 1,996 - 1,996
Increase (decrease) in accounts payable 23,151 - 23,151 Increase (decrease) in compensated absences - 71,659 71,659 Total adjustments 71,659 761,358 $ 833,017
Net Cash Provided By (Used For)
Operating Activities $ (211,441) (292,001) $ (503,442) $ Equipment
Replacement
Compensation
Benefits
157
674
Total
Custodial
Funds
ASSETS
Cash and Cash Equivalents $ 3,102,293 $ 6,175,637 $ 9,277,930 Receivables:

Assessments 45,569,000 - 45,569,000
Due from other governments - 35,012 35,012
Restricted assets:

Cash and investments with fiscal agents - 4,244,913 4,244,913 Total Assets 3,102,293 56,024,562 59,126,855

LIABILITIES
Trade Accounts Payable 1,126 8,450 9,576
Accrued Interest Payable, Deposits 164,092 - 164,092
Deposits Received 45,569,000 - 45,569,000
Due to Other Governments, Current 10,223,452 - 10,223,452 Total Liabilities 8,450 55,957,670 55,966,120

DEFERRED INFLOWS OF RESOURCES
Deferred charge on debt issuance 66,892 - 66,892
Total Deferred Inflows of Resources - 66,892 66,892

NET POSITION
Restricted for other purposes 3,093,843 - 3,093,843
Total Net Position $ 3,093,843 $ 3,093,843 - $
Special
Assessment
Districts

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2024
Retiree Service
158
675
Total
Custodial
Funds

ADDITIONS
Investment income $ 192,587 137,784 $ $ 330,371
Intergovernmental Revenues 6,078,090 - 6,078,090
Contributions from City - 890,129 890,129
Total Additions 1,027,913 6,270,677 7,298,590

DEDUCTIONS
Administrative expenses 504,790 10,400 515,190
Contractual services 2,721,242 879,729 3,600,971
Interest expense 1,569,645 - 1,569,645
Principal expense 1,475,000 - 1,475,000
Total Deductions 890,129 6,270,677 7,160,806
Net Increase (Decrease) in Fiduciary Net Position 137,784 - 137,784 Net Position-Beginning - 2,956,059 2,956,059
Net Position-Ending $ 3,093,843 $ 3,093,843 - $

CITY OF PALM DESERT, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2024
Retiree
Service
Special
Assessment
Districts
159
676
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
160
677

DESCRIPTION OF STATISTICAL SECTION CONTENTS

For the Year Ended June 30, 2024

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 performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.
161
678
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
162
679
City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities 2024 2023 2022 2021 2020
Net Investment in capital assets $ 416,680,537 401,724,234 $ 422,400,639 $ 421,568,819 $ 424,163,964 $ Restricted 172,531,052 175,666,035 164,636,470 197,082,889 196,858,726 Unrestricted 156,106,349 155,755,920 146,766,766 92,557,050 86,017,220 Total Governmental Activities Net Position 745,317,938 733,146,189 733,803,875 711,208,758 707,039,910 Business-Type Activities
Net Investment in capital assets 69,239,563 68,469,469 67,327,809 67,981,326 68,394,059 Unrestricted 10,541,338 11,035,899 10,495,570 8,069,182 6,672,261 Total Business-type Activities Net Position 79,780,901 79,505,368 77,823,379 76,050,508 75,066,320 Primary Government
Net Investment in capital assets 485,920,100 470,193,703 489,728,448 489,550,145 492,558,023 Restricted 172,531,052 175,666,035 164,636,470 197,082,889 196,858,726 Unrestricted 166,647,687 166,791,819 157,262,336 100,626,232 92,689,481 Total Primary Government Net Position $ 825,098,839 812,651,557 $ 811,627,254 $ 787,259,266 $ 782,106,230 $ Governmental Activities 2019 2018 2017 2016 2015
Net Investment in capital assets $ 438,184,070 429,729,549 $ 449,037,170 $ 459,644,720 $ 473,722,694 $ Restricted 197,349,364 200,536,233 197,824,604 193,298,431 135,900,520 Unrestricted 83,054,707 90,057,306 87,091,894 78,812,066 71,530,456 Total Governmental Activities Net Position 718,588,141 720,323,088 733,953,668 731,755,217 (3) 681,153,670 (2) Business-Type Activities
Net Investment in capital assets 69,111,797 69,070,734 69,829,772 70,202,487 71,129,743 Unrestricted 5,609,843 6,590,251 4,829,456 4,479,575 4,302,958 Total Business-type Activities Net Position 74,721,640 75,660,985 74,659,228 74,682,062 75,432,701 Primary Government
Net Investment in capital assets 507,295,867 498,800,283 518,866,942 529,847,207 544,852,437 Restricted 197,349,364 200,536,233 197,824,604 193,298,431 135,900,520 Unrestricted 88,664,550 96,647,557 91,921,350 83,291,641 75,833,414 Total Primary Government Net Position $ 795,984,073 $ 793,309,781 $ 808,612,896 $ 806,437,279 $ 756,586,371 (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.
(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. (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. 163
680
City of Palm Desert
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:

General government $ 26,185,065 46,406,293 $ 24,738,040 $ 25,610,212 $ $ 24,297,715 Public safety 43,639,884 40,753,734 37,396,780 34,280,941 37,286,860 Housing & Redevelopment 27,871,773 13,251,192 9,626,399 10,496,579 8,802,290 Parks, recreation and culture 20,317,786 19,112,483 8,880,984 7,969,386 7,651,094 Public works 28,646,485 20,646,936 22,071,598 24,979,279 28,270,798 Library - 606,561 - - -
Payments to other agencies - - 2,692 - -
Interest on long term debt 143,521 153,203 148,079 176,259 203,183 Total Governmental activities Expenses 167,641,985 120,092,931 102,864,572 103,512,656 106,511,940 Business-Type Activities:

Desert Willow Golf Course 12,973,341 11,073,128 9,910,813 8,960,991 8,603,243 Office Complex - Parkview 1,409,321 1,362,313 951,353 872,212 856,196 Total Business-Type Activities 14,335,654 12,482,449 10,862,166 9,833,203 9,459,439 Total primary government expenses $ 181,977,639 $ 132,575,380 $ 113,726,738 $ 113,345,859 $ 115,971,379 Program Revenues
Governmental Activities
Charges for services
General government $ 2,678,135 2,889,464 $ 2,901,226 $ 2, $ 437,840 $ 2,343,116 Housing & Redevelopment 11,016,631 9,193,031 8,060,726 7, 455,959 8,446,585 Public safety 18,831,126 20,828,172 17,506,658 18,828,021 16,429,810 Parks, recreation and culture 3,339,445 3,578,805 675,307 325,485 532,543 Public works 2,958,606 2,860,351 3,075,351 2, 443,299 2,386,635 Operating grants & contributions 13,039,734 9,902,196 20,328,308 10,617,579 10,416,281 Capital grants & contributions 4,673,498 17,310,806 4,828,197 16,836,560 3,661,487 Total Governmental Activities Program Revenues 66,562,825 56,537,175 57,375,773 58,944,743 44,216,457 Business-Type Activities
Charges for Service:

Desert Willow Golf Course 12,159,419 12,200,236 11,068,847 9, 171,607 7,099,985 Office Complex - Parkview 1,473,376 1,220,790 1,340,680 1, 291,020 1,311,140 Capital grants & contributions 99,154 189,931 187,083 220,198 183,556 Total Business-type activities program revenue 13,610,957 13,731,949 12,596,610 10,682,825 8,594,681 Total Primary Government program revenue $ 70,269,124 80,173,782 $ 69,972,383 $ 69,627,568 $ $ 52,811,138 Net (Expense) / Revenue
Governmental activities $ (63,555,756) (101,079,160) $ (45,488,799) $ ( $ 44,567,913) $ (62,295,483) Business-type activities 1,249,500 (724,697) 1,734,444 849,622 (864,758) Total Primary Government Net Expense $ (101,803,857) $ (62,306,256) $ (43,754,355) $ (43,718,291) $ (63,160,241) General Revenues & Other Changes in Net Position
Governmental Activities:

Taxes: (Combined/Net Pass-through) $ 67,809,190 67,521,298 $ 66,204,764 $ 47,221,069 $ $ 45,210,477 Investment Earnings (1,971,646) 5,165,176 301,330 2,366,204 Gain(loss) on sales of capital assets 825,294 - - - 80,490 Miscellaneous 1,250,480 21,092,008 3,850,798 1, 214,362 1,355,134 Special Item (3) - - - - -
Transfers In / (Out) - 294,105 - - -
Total Governmental activities Net Revenues 88,907,411 75,050,140 68,083,916 48,736,761 49,012,305 Business-Type Activities:

Investment Earnings 450,279 - (99,994) 20,283 159,115
Miscellaneous 257,743 743,269 138,421 114,283 110,978
Transfers Out - (294,105) - - -
Total Business-type activities 708,022 449,164 38,427 134,566 270,093 Total primary government $ 89,356,575 $ 75,758,162 $ 68,122,343 $ 48,871,327 $ 49,282,398 Change in Net Position
Governmental Activities: $ (12,171,749) $ 11,494,384 $ 22,595,117 $ 4,168,848 $ (13,283,178) Business-Type Activities: (275,533) 1,957,522 1,772,871 984,188 (594,665) Total primary government $ (12,447,282) $ 13,451,906 $ 24,367,988 $ 5,153,036 $ (13,877,843) (3) City established an allowance for advances owed by the Successor Agency. (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. (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.

Expenses 2024 2023 2022 2021 2020
164
681
City of Palm Desert
Changes in Net Position
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:

General government $ 18,467,097 23,252,576 $ 15,708,054 $ 14,836,881 $ $ 16,337,393 Public safety 37,195,732 36,543,050 34,943,220 34,009,984 32,077,635 Housing & Redevelopment 9,605,756 9,067,858 10,954,630 8,162,859 11,666,724 Parks, recreation and culture 8,240,115 8,284,914 9,850,200 9,223,126 8,598,242 Public works 14,836,332 18,358,907 14,892,145 47,044,197 19,144,213 Interest on long term debt 259,250 231,228 271,603 289,000 294,258 Total Governmental Activities Expenses 92,868,640 91,474,175 86,619,852 113,566,047 88,118,465 Business-Type Activities:

Desert Willow Golf Course 8,763,220 8,700,514 8,243,515 8,165,183 8,433,267 Office Complex - Parkview 930,815 874,753 893,125 1,005,918 934,296 Total Business-Type Activities 9,694,035 9,575,267 9,136,640 9,171,101 9,367,563 Total primary government expenses $ 102,443,907 $ 101,168,210 $ 95,756,492 $ 122,737,148 $ 97,486,028 Program Revenues
Governmental Activities
Charges for services
General government $ 2,388,260 2,645,724 $ 2,095,648 $ 2,185,123 $ $ 2,088,393 Housing & Redevelopment 7,551,760 8,180,354 6,861,450 7,029,595 7,971,265 Public safety 10,801,436 14,503,741 10,603,708 10,606,464 9,987,891 Parks, recreation and culture 821,824 829,557 793,527 772,801 772,728 Public works 2,685,831 2,762,045 2,327,521 2,186,153 1,832,241 Operating grants & contributions 8,555,881 10,426,397 7,931,900 9,496,520 7,512,894 Capital grants & contributions 2,442,621 4,016,193 7,710,355 10,839,715 19,297,015 Total Governmental Activities Program Revenues 43,364,011 35,247,613 38,324,109 43,116,371 49,462,427 Business-Type Activities
Charges for Service:

Desert Willow Golf Course 8,432,273 8,743,654 7,497,664 7,240,866 7,894,676 Office Complex - Parkview 1,250,456 1,298,066 1,284,462 1,280,230 1,306,042 Capital grants & contributions 167,670 504,217 605,186 111,942 47,768 Total Business-type activities program revenue 10,545,937 9,850,399 9,387,312 8,633,038 9,248,486 Total Primary Government program revenue $ 53,909,948 $ 45,098,012 $ 47,711,421 $ 51,749,409 $ 58,710,913 Net (Expense) / Revenue
Governmental Activities $ (56,226,562) (49,504,629) $ (48,295,743) $ (70,449,676) $ $ (38,656,038) Business-type activities 156,364 970,670 250,672 (538,063) (119,077) Total Primary Government Net Expense $ (48,533,959) $ (56,070,198) $ (48,045,071) $ (70,987,739) $ (38,775,115) General Revenues & Other Changes in Net Position
Governmental Activities:

Taxes: (Combined/Net Pass-through) $ 50,150,650 53,894,917 $ 47,628,454 $ 44,747,151 $ $ 41,931,997 Investment Earnings 1,901,536 3,170,693 1,041,232 2,074,934 494,452 Gain(loss) on sales of assets 17,274 7,452 2,145 24,292 11,720 Miscellaneous 1,573,106 1,396,514 1,522,363 1,828,677 1,726,007 Special Item (3) - (7,530,000) - - -
Transfers In / (Out) 300,000 300,000 300,000 237,500 437,500 Gain on Transfer to Successor Agency/Extraordinary Gain (2) - - - 72,138,669 - Total Governmental Activities Net Revenues 53,942,566 51,239,576 50,494,194 121,051,223 44,601,676 Business-Type Activities:

Investment Earnings 74,873 181,310 26,494 24,924 11,774 Gain(loss) on sales of capital assets 131,175 87,365 - - 47,938 Transfers Out (300,000) (300,000) (300,000) (237,500) (437,500) Total Business-type activities (93,952) (31,325) (273,506) (212,576) ( 377,788) Total primary government $ 51,208,251 $ 53,848,614 $ 50,220,688 $ 120,838,647 $ 44,223,888 Change in Net Position
Governmental Activities: $ (2,283,996) 1,734,947 $ 2,198,451 $ 50,601,547 $ $ 5,945,638 Business-Type Activities: 62,412 939,345 (22,834) (750,639) (496,865) Total primary government $ 2,674,292 $ (2,221,584) $ 2,175,617 $ 49,850,908 $ 5,448,773 (3) City established an allowance for advances owed by the Successor Agency. (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. (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.

Expenses 2019 2018 2017 2016 2015
165
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166
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City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund: 2024 2023 2022 2021 2020
Nonspendable $ 3 2,888,448 $ 4,050,414 ,501,822 $ 4,178,180 $ $ 7,196,092 Committed 83,424,843 52,308,943 82,741,109 73, 856,851 66,012,415 Assigned 19,282,496 18,698,560 18,238,107 16, 696,825 16,196,564 Unassigned 14,707,351 52,457,702 32,645,330 5,681,608 3,473,480 Total General Fund 120, 126,353,653 137,674,960 916,512 100,413,464 92,878,551 All other Governmental Funds:

Nonspendable 51,657 80,800 19,591 18,427 15,705
Restricted 172, 175,666,695 164,636,470 531,603 168,368,520 168,806,454 Committed 15,568,245 20,274,259 15,761,482 16, 312,379 16,275,373 Assigned 32,522,600 24,365,783 28,078,039 27, 459,735 27,133,815 Unassigned - (445,505) (126,614) - -
Total all other Governmental Funds $ 220,674,105 219,942,032 $ 208,368,968 $ 212,159,061 $ $ 212,231,347 General Fund: 2019 2018 2017 2016 2015
Nonspendable $ 10,509,094 10,559,396 $ 9,067,979 $ 9,528,630 $ $ 10,312,261 Committed 59,666,638 63,197,223 - - -
Assigned 15,492,508 15,964,130 658,817 991,853 1,771,278 Unassigned 4,702,308 3,322,321 71,842,172 74,259,748 67,727,130 Total General Fund 90,370,548 93,043,070 83, 82,362,655 986,544 79,810,669 All other Governmental Funds:

Nonspendable 193,189 1,726 1,276 3,052 348
Restricted 175,780,733 169,549,126 171,044,474 165,411,544 (3) 106,261,212 Committed 16,247,652 16,751,821 16,771,055 16,873,834 16,952,887 Assigned 21,238,271 23,258,063 23,250,337 24,172,531
Total all other Governmental Funds 213,459,845 $ $ 209,560,736 $ 211,067,142 $ 182,288,430 $ 147,386,978 (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. (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. 167
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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: 2024 2023 2022 2021 2020
Taxes $ 87,339,337 $ 86,687,919 $ 84,037,191 $ 65,209,322 $ 59,635,918 Special assessments collected 3,618,972 3,697,666 3,407,107 3,381,657 3,481,924 Licenses & permits 3,111,176 1,990,632 2,622,695 1,504,694 1,268,965 Intergovernmental revenues 11,371,128 6,711,363 12,300,071 20,136,679 6,401,926 Rental income 8,958,960 9,463,306 8,129,025 7,320,419 7,071,648 Charges for services 10,284,637 8,743,794 6,175,500 4,889,634 5,272,577 Investment Earnings 18,508,081 12,129,730 (2,402,801) 1,298,728 10,311,159 Fines & forfeitures 127,087 106,152 105,198 147,671 127,801 Miscellaneous 11,955,948 852,153 7,340,808 3,776,838 4,741,905 Contributions from other government - - 1,974,653 - -
Total Revenues $ 130,941,154 154,716,887 $ 123,689,447 $ 107,665,642 $ $ 98,313,823 Expenditures:

General government $ 34,683,367 $ 24,896,946 $ 24,079,563 $ 23,478,543 $ 21,468,512 Housing & redevelopment 13,090,694 10,310,551 8,232,440 8,839,559 7,090,941 Public safety 43,449,970 40,660,248 37,322,951 34,035,102 37,021,952 Parks, recreation & culture 18,912,572 17,708,634 7,439,687 6,073,015 5,902,166 Public works 14,102,656 15,287,888 17,667,805 18,533,419 21,994,806 Library - 606,561 - - -
Capital outlay 24,510,104 7,835,762 12,110,677 7,840,438 5,117,968 Debt service:

Principal retirement 263,809 582,854 2,294,052 174,000 225,000 Interest and fiscal charges 135,903 153,203 157,462 184,529 210,292 Total Expenditures $ 117,099,741 150,091,981 $ 109,304,637 $ 99,158,605 $ $ 99,031,637 Excess(deficiency of Revenues
over(under) expenditures $ 13,841,413 4,624,906 $ 14,384,810 $ 8,507,037 $ $ (717,814) Other financing sources (uses)
Transfers in 15,057,580 26,746,473 11,555,402 10,186,341 10,702,762 Transfers out (27,707,762) (15,155,662) (11,864,512) (11,230,751) (11,377,965) Extraordinary Gain / (Loss) (2) - - 2,603,284 - -
Sale of property (88,163) 594,610 (1,001,688) - -
Proceeds from subscriptions 529,156 473,763 - - -
Total Other financing sources (uses) (520,296) 80,162 1,292,486 (1,044,410) (675,203) Net Change In Fund Balance $ 13,321,117 4,705,068 $ 15,677,296 $ 7,462,627 $ $ (1,393,017) Revenues: 2019 2018 2017 2016 2015
Taxes $ 67,102,185 $ 61,906,859 $ 59,466,545 $ 56,735,503 $ 52,571,369 Special assessments collected 3,445,246 3,948,157 3,318,114 3,296,705 3,058,766 Licenses & permits 1,326,049 1,416,829 1,678,709 2,057,843 1,757,250 Intergovernmental revenues 5,682,704 6,194,152 7,249,515 15,429,238 18,981,304 Rental income 6,675,632 6,899,916 6,439,458 5,896,480 5,660,762 Charges for services 2,894,821 5,223,285 2,356,363 2,082,843 1,819,464 Investment Earnings 3,626,892 7,166,097 2,086,224 1,837,319 1,242,662 Fines & forfeitures 162,370 273,434 135,276 295,269 224,612 Miscellaneous 2,886,542 2,892,940 2,594,433 2,317,499 2,377,923 Contributions from other government - - 3,550,991 - 9,168 Contributions from property owners - - - 7,868 -
Total Revenues $ 88,607,115 101,116,995 $ 88,875,628 $ 89,956,567 $ 87,703,280 $ Expenditures:

General government $ 24,269,546 $ 19,281,102 $ 16,887,293 $ 15,783,955 $ 15,467,746 Housing & redevelopment 8,522,801 7,504,119 9,239,680 6,438,849 9,349,021 Public safety 36,901,283 36,247,656 34,674,418 33,750,347 31,819,214 Parks, recreation & culture 6,467,713 6,497,391 7,157,821 6,831,534 6,236,717 Public works 12,183,852 8,728,354 8,794,894 11,031,584 13,082,388 Contributions to property owners - - - 19,584,487 49
Capital outlay 915,422 3,396,511 2,169,035 7,071,738 19,339,987 Debt service:

Principal retirement 150,000 587,000 237,000 257,000 4,944,000 Interest and fiscal charges 260,971 244,050 277,814 296,336 240,219 Total Expenditures $ 84,029,517 88,128,254 $ 79,437,955 $ 101,045,830 $ 100,479,341 $ Excess(deficiency of Revenues
over(under) expenditures $ 12,988,741 $ 4,577,598 $ 9,437,673 $ (11,089,263) $ (12,776,061) Other financing sources (uses)
Transfers in 6,613,352 5,319,448 9,406,888 6,030,706 6,132,859 Transfers out (6,313,352) (5,736,558) (12,218,428) (6,075,206) (6,971,359) Special Item (3) - (6,000,000) - - -
Extraordinary Gain / (Loss) (2) - - - 72,138,669 -
Sale of property - - - 225,000 2,163,222
Total Other financing sources (uses) 300,000 (6,417,110) (2,811,540) 72,319,169 1,324,722 Net Change In Fund Balance $ 4,877,598 6,571,631 $ 6,626,133 $ 61,229,906 $ $ (11,451,339) Debt service as a percentage of noncapital expenditures For more information on the dissolution of the RDA please see Note 16 and 17. (3) City established an allowance for advances owed by the Successor Agency. (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.

Debt service as a percentage of noncapital expenditures

1.0% 0.6%

0.6% 0.4% 2.5% 0.4% 0.5%

0.5% 0.7% 6.4%
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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 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015 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 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015 Total Expenditures
Parks, recreation & culture
Pass-through-agreement
Debt Expenditures (3)
Capital outlay
Public works (4)
Public safety
Housing & Redevelopment
General Government
169 686
City of Palm Desert
Supplemental - Historical General Fund Revenues
(including Transfers In)
Last Ten Fiscal Years
FY 2024 2023 2022 2021 2020
Revenue Type:

Sales Tax $ 25,391,092 $ 26,354,774 $ 26,193,390 $ 21,156,220 $ 18,445,806 Transient Occupancy Tax 23,019,911 23,825,410 22,098,939 10,760,455 11,681,583 Property Tax (3) 15,326,607 12,952,007 11,703,419 11,193,276 11,101,584 Investment Earnings 6,767,157 5,025,534 (1,867,595) 284,744 4,181,814 Transfer In 396,806 2,478,731 3,774,873 3,515,966 2,472,976 Franchises 3,727,659 3,574,273 3,334,555 3,066,989 3,025,984 State Subventions (1) (3) 131,253 146,957 127,546 38,945 60,593 Building & Grading Permits 1,491,171 2,290,974 2,079,314 1,195,893 953,176 Reimbursements (4) 1,531,895 1,464,230 530,474 1,229,484 1,375,770 Business License Tax 1,272,190 1,139,514 1,326,920 962,940 1,038,137 Timeshare Mitigation Fee 1,789,418 1,711,324 1,555,137 1,501,625 1,467,905 Plan Check Fees 471,287 644,448 616,576 480,881 468,180 Property Transfer Tax 918,983 934,735 1,197,951 1,027,833 566,468 Other Revenues (2) 1,611,425 3,581,082 8,337,209 8,072,509 3,130,862 Total General Revenue $ 86, 83,846,855 $ 81,008,708 123,993 $ 64, $ 487,760 $ 59,970,838 FY 2019 2018 2017 2016 2015
Revenue Type:

Sales Tax $ 21,434,387 $ 18,627,704 $ 18,505,449 $ 18,994,779 $ 17,565,134 Transient Occupancy Tax 17,250,843 17,019,034 15,054,259 11,252,997 10,799,680 Property Tax (3) 11,074,207 10,777,998 10,157,813 10,461,595 9,710,990 Investment Earnings 2,672,643 1,237,562 644,341 725,015 416,656 Transfer In 937,202 1,610,830 1,472,852 1,390,258 2,179,472 Franchises 3,078,855 3,097,521 3,146,702 3,095,873 3,102,431 State Subventions (1) (3) 82,722 38,876 23,101 59,317 155,049 Building & Grading Permits 1,064,071 1,048,973 1,247,390 1,216,115 1,279,706 Reimbursements (4) 1,468,351 1,388,654 1,407,811 1,589,511 1,604,707 Business License Tax 1,216,712 1,154,275 1,118,183 1,269,082 1,160,207 Timeshare Mitigation Fee 1,678,375 1,543,762 1,467,028 1,500,683 1,483,158 Plan Check Fees 619,763 691,096 431,115 592,818 505,370 Property Transfer Tax 727,978 664,822 690,975 491,060 558,965 Other Revenues (2) 2,352,803 1,951,122 2,185,703 2,189,063 1,713,758 Total General Revenue $ 60, 65,658,912 $ 57,552,722 852,229 $ 54, $ 828,166 $ 52,235,283 (1) State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. (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. (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. 170
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Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
*State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. (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.
$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 2024 FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 Combined Other (1)
Interest
Property Tax
Transient Occupancy Tax
Sales Tax
171
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City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY 2024 2023 2022 2021 2020
Expenditure:

Public Safety (1) $ 23,304,557 24,181,750 $ 20,288,195 $ 19,326,751 $ $ 21,415,334 City Administration (2) 14,202,930 21,172,587 12,620,102 12,990,562 11,429,468 Public Works Administration 1,897,288 3,026,733 2,265,476 1,886,402 2,457,045 Community Promotions 1,347,204 746,864 1,216,272 420,424 947,370 Street Maintenance 2,342,284 2,156,583 2,421,966 2,317,468 2,212,933 Building Safety 1,282,002 1,366,067 1,751,817 1,461,477 1,661,372 Public Works (4) 4,126,215 3,852,469 1,338,520 1,165,671 1,151,447 Other Expenditures (3) 35,851,470 23,263,679 18,572,299 17,384,092 18,860,388 Total Expenditures $ 85,108,013 79,012,669 $ 60,474,647 $ 56,952,847 $ $ 60,135,357 FY 2019 2018 2017 2016 2015
Expenditure:

Public Safety (1) $ 21,088,867 20,975,032 $ 20,424,249 $ 20,151,237 $ $ 18,784,117 City Administration (2) 11,460,325 12,521,081 8,238,228 7,971,706 7,561,255 Public Works Administration 2,149,715 2,333,897 2,637,630 2,664,871 2,645,443 Community Promotions 1,249,674 1,179,305 1,062,611 791,565 749,631 Street Maintenance 2,185,648 2,020,797 2,418,451 2,709,328 2,631,590 Building Safety 1,828,083 1,579,734 1,849,442 1,888,290 1,847,798 Street Resurfacing 2,760 - 25,326 1,083,919 998,463
Public Works (4) 1,250,969 1,133,007 970,877 1,004,989 1,067,837 Other Expenditures (3) 13,669,533 20,826,188 18,302,019 14,010,275 14,512,426 Total Expenditures $ 54,468,225 62,986,390 $ 55,928,833 $ 52,276,180 $ $ 50,798,560 (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.
172
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City of Palm Desert
Supplemental Graph- Historical General Fund Expenditures (Including Transfers Out)
Last Ten Fiscal Years
(4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard, public building maintenance, Portola Community center, storm water permit. (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. $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 2024 FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 Other Expenditures Comb (3)
Public Works (4)
City Administration (2)
Public Safety (1)
173
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174
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City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita Last Ten Fiscal Years
FY 2024 2023 2022 2021 2020
Total General Revenue (2) $ 86,123,993 83,846,855 $ 77,168,851 $ 60,971,794 $ $ 57,497,862 Population (1) 50,615 50,889 50,889 53,892 52,986
General Revenue Per Capita $ 1,702 1,648 $ 1,516 $ 1,131 $ $ 1,085 FY 2019 2018 2017 2016 2015
Total General Revenue (2) $ 59,241,399 64,721,710 $ 56,079,870 $ 53,437,908 $ $ 50,055,811 Population (1) 52,769 53,625 50,740 49,335 51,053
General Revenue Per Capita $ 1,123 1,207 $ 1,105 $ 1,083 $ $ 980 FY 2024 2023 2022 2021 2020
Total General Expenditures (2) $ 85,108,013 79,012,669 $ 52,730,364 $ 49,481,094 $ $ 51,498,878 Population (1) 50,615 50,889 50,889 53,892 52,986
General Expenditures Per Capita $ 1,681 1,553 $ 1,036 $ 918 $ $ 972 FY 2019 2018 2017 2016 2015
Total General Expenditures (2) $ 49,992,388 57,900,932 $ 48,427,111 $ 48,134,252 $ $ 46,302,187 Population (1) 52,769 53,625 50,740 49,335 51,053
General Expenditures Per Capita $ 947 1,080 $ 954 $ 976 $ $ 907 (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 175
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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)
2024 14,806,817,526 3,268,784,947 77,828,213 291,855,799 *- 19,457,053,253 1.00000 19,294,390,764 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 (1) Estimated Actual Taxable Value = Net Taxable Value
Source: Riverside County Assessor thru HDL Coren & Cone 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. * 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. 176
693
City of Palm Desert
Historical Net Assessed Taxable Values Citywide
Graph - Assessed Valuation Growth
Last Ten Fiscal Years
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

5.08%

5.02%

2.56% 2.48% 4.15% 3.93% 3.72%

3.39%

6.72% 7.82%
-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Percent Increase in Assessed Valuation
FY 2015 to FY 2024
$-
$5,000
$10,000
$15,000
$20,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Value in Millions
Net Assessed Valuation - Historical Comparison
FY 2015 to FY 2024
177
694
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. 178
695
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
2024 1.00000 1.00000 0.07500 0.03950 0.11000 0.00000 0.14493 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 Notes: Proposition 13 limits the ability of the city to raise the property tax rate.

Source: CalMuni Statistics Inc
City Direct Overlapping Rates
179
696
City of Palm Desert
Principal Property Taxpayers
Current and Nine Years Ago
2024 2015
Taxpayer Taxable Assessed
Value
Percentage of Total
City Tax Assessed
Value
Taxpayer Taxable Assessed
Value
Percentage of Total
City Tax Assessed
Value
NEWAGE DesertSprings $ 0.97% WEA Palm Desert 144,751,735 186,915,372 $ 1.10% WEA Palm Desert 0.88% DS Hotel 142,417,301 170,932,097 1.09% Gardens on El Paseo LLC 0.76% Gardens on El Paseo LLC 101,110,901 147,812,500 0.77% WVC Rancho Mirage Inc 0.71% WVC Rancho Mirage Inc 94,636,672 136,944,388 0.72% PRU Desert Crossing LLC 0.57% 109,835,938 PRU Desert Crossing LLC 85,231,391 0.65% CC Cimarron LP 72,822,193 0.38% Walmart Real Estate
Business Trust 57,712,366 0.44%
First American Trust 65,528,658 0.34% Marriott Ownership Resorts 56,584,242 0.43% Walmart /Sams 59,508,979 0.31% Segovia Operations 47,927,486 0.37% Sunrise Spectrum 55,391,442 0.29% Monarch Sevilla Venture 47,585,410 0.36% PC APDG Palm Desert 53,060,398 0.27% Sunrise Spectrum 47,054,777 0.36% Total $ 5.47% 1,058,751,965 Total $ 6.29% 825,012,281
Source: HdL Coren & Cone thru Riverside County Assessor 22/23 and HdL Coren & Cone thru Riverside County Assessor 13/14 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.
180
697
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 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% 2024 9,685,707 9,074,891 93.69% 610,816 9,685,707 100.00% (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
(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.
181
698
City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30, 2024
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

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

TJ MAXX FAMILY APPAREL

TOMMY BAHAMA FAMILY APPAREL

TOTAL WINE & MORE CONVENIENCE STORES/LIQUOR

WAL-MART SUPERCENTER DISCOUNT DEPT STORES
(1) Listed in Alphabetical Order
* 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 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.
$7.0
$9.0
$11.0
$13.0
$15.0
$17.0
$19.0
$21.0
$23.0
$25.0
$27.0
$29.0
2015201620172018201920202021202220232024
Millions
Sales and Use Tax Trends FY 2014 - 2023

0.66%

15.1%
-13.9%

14.7%

0.6%

8.1%
-3.7%
Amounts
in Millions
% = % Change from Prior Year
-2.57%
$17.564 $18.994 $18.505 $18.627 $21.434 $18.445 $21.156 $26.193 $26.354 $25.391

23.8%
-In Lieu *

1.8%
182
699
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
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 2015 3,302,000 e 1,435,046 4,737,046 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
2024 1,068,000 - 1,068,000 0.03% 21
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. f
- Personal income and Per Capita statistic includes government and business type activities combined. 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 to fund the 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 bonds.

Business Type Activities
183
700
City of Palm Desert
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of Actual
Special Assessment Taxable Value of Per
Bonds Property Capita
Note: There are no General Obligation Bonds from FY 2015 to FY 2024 General Bonded Debt Outstanding
184
701
City of Palm Desert
Supplemental Special Assessment Information
June 30, 2024
District Name\Description
2003 01-01
Revenue Bonds
Silver Spur Ranch
Utility
Undergrounding 5
2004-2 Section 29
Assessment
District
Limited Obligation
Improvement
Bonds Series 2021
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
Community
Facilities District
No. 2021-1
(University Park)
Special Tax Bonds
Series 2024
Bond Issue Date 6/25/2003 6/23/2021 7/13/2021 7/13/2021 3/6/2024 Final Maturity Date 9/2/2028 9/2/2037 9/1/2036 9/1/2051 9/1/2053 Highest Interest Rate 5.375% 4.000% 4.000% 4.000% 5.000% Bond Issue Amount $ 2,340,000 $ 16,400,000 $ 5,165,000 $ 15,200,000 $ 11,600,000 Matured Principal 1,505,000 1,470,000 520,000 550,000 - Called Principal 175,000 - - - -
Outstanding Bonds (4) 660,000 14,930,000 4,645,000 14,650,000 11,600,000 Redemption Premium 3.00% 3.00% 3.00% 3.00% N/A
Original Parcels 201 859 66 243 411
Active Parcels 189 775 49 366 243
Reserve Requirement 155,475 1,415,800 468,400 874,200 1,021,147 Reserve Balance 23/24 (1) 1,415,853 168,236 468,408 874,214 1,021,156 Principal Due 24/25 (2) 785,000 120,000 280,000 315,000 - Principal Levied 23/24 (3) 685,000 115,000 270,000 550,000 - Interest Due 24/25 (2) 580,300 32,250 178,800 553,275 246,138 Interest Levied 23/24 (3) 612,300 35,475 187,050 562,575 - 23/24 Delinquency Rate 0.00% 0.13% 1.64% 0.00% 0.00%
Arbitrage Installment Computation Date:
90% Rebate Due 06/25/23 09/02/25 09/01/25 09/01/25 N/A
Arbitrage Yield Rate 4.9129% 2.1563% 1.9100% 3.2391% N/A Continuing Disclosure Last Report Issued: 02/2024 02/2024 02/2024 02/2024 N/A (1) Reserve Balances are as of 6/30/24.
(2) Outstanding bond balance at June 30, 2024.
(4) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments.

Source: Willdan Financial Annual Report
(7) 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 (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 (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. (3) Amount represents principal and interest collected during the FY 23/24 tax roll for Debt Service Payment due in FY 24/25 per debt service schedule.
185
702
City of Palm Desert
Direct and Overlapping Government Activities Debt
June 30, 2024
2022/23 Assessed Valuation: $ 19,327,379,151
City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: Total Debt 6/30/24 % Applicable (1) Debt 6/30/24 Desert Community College District $ 664,990,000 17.511% 116, $ 446,399 Desert Sands Unified School District 349,520,000 33.388% 116,697,738 Palm Springs Unified School District 475,359,672 4.356% 20,706,667 City of Palm Desert Limited Obligation Improvement Bonds 157,000 100.000% 157,000 City of Palm Desert Community Facilities District No. 2005-1 4,645,000 100.000% 4,645,000 City of Palm Desert Community Facilities District No. 2021-1 26,250,000 100.000% 26,250,000 City of Palm Desert 1915 Act Bonds 16,585,000 100.000% 16,585,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 301,487,804
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Riverside County General Fund Obligations 1,169,217,035 4.871% 56, 952,562 Riverside County Pensions Obligations 4. 670,785,000 871% 32,673,937 Desert Sands Unified School District Certificates of Participation 33.388% 2, 7,775,000 595,917 City of Palm Desert 100.000% - -
Desert Recreation District Certificates of Participation 1,194,811 25.396% 303,434 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 92,525,850 OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES) 0.189-100% 424,890,065 141,037,846 TOTAL OVERLAPPING DEBT 535,051,500
COMBINED TOTAL DEBT $ 535,051,500 (2)
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2023-2024 Adjusted Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.56%
Total Direct Debt ($0) 0.00%
Net Combined Total Debt 2.77%
Ratios to Redevelopment Successor Agencies Incremental Valuation $ (12,925,331,991) Total Overlapping Tax Increment Debt 1.09%
Source: California Municipal Statistics, Inc., City of Palm Desert Finance Department (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 186
703
City of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed Value $ 19,327,379,151
Debt Limit (15% of Assessed Value) (1) 2,899,106,873
Debt Applicable to Limit:

General Obligation Bonds 980,000
Legal debt margin $ 2,898,126,873
2015 2016 2017 2018 2019
Debt Limit $ 2, 1,869,699,132 $ 2, 059,815,120 $ 2,167,115,649 114,442,742 $ $ 2,256,723,736 Total Net debt applicable to limit 1,489,000 1,451,000 1,410,000 1,368,000 1,310,000 Legal debt margin $ 1,868,210,132 $ 2,058,364,120 $ 2,113,032,742 $ 2,165,747,649 $ 2,255,413,736 Total net debt applicable to the limit
as a percentage of debt limit 0.08% 0.07% 0.07% 0.06% 0.06% 2020 2021 2022 2023 2024
Debt Limit $ 2, 2,345,639,686 $ 2, 432,559,897 $ 2,692,646,137 513,282,720 $ $ 2,899,106,873 Total Net debt applicable to limit 1,178,000 1,130,000 1,082,000 1,032,000 980,000 Legal debt margin $ 2,344,461,686 $ 2,431,429,897 $ 2,512,200,720 $ 2,691,614,137 $ 2,898,126,873 Total net debt applicable to the limit
as a percentage of debt limit 0.05% 0.05% 0.04% 0.04% 0.03% (1) Section 43605 of the California Government Code.

Source: California Municipal Statistic, Inc. San Francisco Legal Debt Margin Calculation for Fiscal Year 2024

FISCAL YEAR

FISCAL YEAR
187
704
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 2015 10,848,129 g 8,159,000 f 0.8540 4,543,692 32,294,255 e 13,999,255 18,295,000 1.000 2016 8,537,227 25,401,000 h 0.2859 4,463,786 34,810,024 e 16,755,024 18,055,000 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 488,000 3,342,319 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 2024 4,525,650 1,565,000 1,515,565 1.4691 26,032,829 e, i 19,915,000 e, i 6,117,829 1.000 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. 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. 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.
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.
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.
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.
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.
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. 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. 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. 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.
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.

Tax Increment b
Debt Service Debt Service
Special Assessment Bonds
188 - 705
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 2024 0. 50,889 54% 3,095,589,116 $ $ 60,830 5.50% 2,442,378 0.13% 5.40% 2023 -0. 50,615 54% 3,049,841,493 60,256 4.80% 2,439,234 0.15% 5.00% 2022 -5. 50,889 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 -1. 52,986 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% Sources: State Department of Finance, State Employment Development Department 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).
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.
189
706
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. 2024* 2015
190
707
City of Palm Desert
Supplemental Miscellaneous Statistics
June 30, 2024
City/ Municipal Government
Form of Government: Council - City Manager/Charter City Date of Incorporation: November 26, 1973
Number of Employees: 147 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: 5,958 active business licenses Number of Hotels & Rooms: 19 hotels, 2,822 rooms
CONTRACT SERVICES:

Police Department
Fire Department
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
Contract with Riverside County Sheriff - 61 sworn positions plus 19 support staff (rounded to nearest FTE)
Contract with Riverside County/State Fire 54 positions plus 12 Fire Prevention staff
191
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City of Palm Desert
Full-time Equivalent City Government Employees by Function / Program Last Ten Fiscal Years
Function / Program 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 General Government
City 58 38 35 33 33 31 31 32 32 34
Economic Dev & Housing b 16 17 12 11 11 11 10 11 13 13
Public Safety 30 29 28 30 30 28 29 29 28 26
Police & Fire (1) 146 141 141 140 174 172 179 170 163 169 Public Works 43 39 33 38 38 39 39 39 40 40
Totals 293 264 249 252 286 281 288 281 276 282
a - As of June 2011 realignments were made due to budget cuts, retirements and layoffs, these continued to FY 2013.

Source: City of Palm Desert Financial Plan, California Department of Forestry and Fire Protection, Riverside County Sheriff's Department 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. (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. 192
709
City of Palm Desert
Operating Indicators by Function / Program
Last Ten Fiscal Years
Function / Program 2024 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) 60,828 60,753 61,932 60,226 58,096 59,154 56,346 54,301 52,772 54,865 57,935 Recyclables Collected 26,843 25,497 22,043 20,964 21,772 27,391 28,119 26,651 23,818 24,611 26,424 Public Safety
Physical Arrests 1,215 1,155 1,198 1,066 621 758 1,654 1,620 1,284 1,946 1,348 Parking Violations 1,315 1,128 769 780 899 375 575 587 712 794 386 Traffic Violations 1,617 1,497 1,398 2,070 1,392 3,525 7,012 6,939 6,223 5,525 5,284 Emergency Responses-Fire Department 11,843 11,136 10,557 9,701 15,088 10,009 9,984 9,617 9,285 8,628 8,235 Fires Extinguished 104 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 4,165 4,795 5,211 3,651 3,118 3,912 3,644 4,734 4,704 4,909 5,552 Building Inspections Conducted 14,255 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) 0.87 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 2,244 2,766 2,255 2,262 643 2,990 2,934 3,197 2,997 4,430 6,548 Amphitheater / Pavilions Permits Issued 194 292 350 244 6 119 121 106 104 283 247 Community Center Admissions 11,030 37,048 32,326 15,577 9,746 52,203 60,769 51,694 64,493 53,426 50,204 Aquatic Center Admissions (2) 48,092 38,864 31,320 38,249 32,905 52,102 53,739 58,023 60,359 64,103 43,545 (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. (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 and The YMCA.
193
710
City of Palm Desert
Capital Asset Statistics by Function / Program
Last Ten Fiscal Years
Function / Program 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 General Government
Contracted Services (1)
Collection trucks 39 39 35 29 25 25 24 24 35 30
Public Safety - Police & Fire
Police Stations 1111111111
Police Sub Stations 1111111111
Patrol Units-Cars 26 26 26 26 27 29 30 29 29 29
Patrol Units-Motorcycles 7 7 7 7 7 6 9 911 10
Fire Stations 3333333333
Fire Trucks 1 plus 1 reserve 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 Ambulance 4 plus 3 reserve 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 Fire Prevention Pick-ups - - - -2.54 3 3 3 3
Public Works
Streets (miles) 170 170 170 170 170 170 170 170 170 170 Traffic Signals 99 99 99 99 99 99 99 99 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 8888888888
Soccer/football fields 9999999999
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 8888888888
Community Centers 2222222222
Skateboard Parks 2222222222
Aquatic Center 1 1 1 1 1 1 1 1 1 1
Commercial Office Space
(Parkview Office Complex)
Leasable Space (square feet) 45,349 47,909 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 Occupancy Rate 85% 80% 84% 84% 91% 91% 82% 84% 90% 90%
Number of Tenants by Type
Government (State, local regional) 5577777798
Non-Profit 2244443343
Private 4333332311
Square Footage lease by tenant
Government (State, local regional) 23,374 23,374 31,607 31,607 31,607 31,607 30,907 32,287 33,127 30,907 Non-Profit 4,873 4,873 7,339 7,339 7,341 6,621 4,061 4,061 3,561 6,269 Private 5,643 3,083 3,083 3,083 6,693 7,468 6,218 6,938 8,688 8,025 Vacant 14,037 16,597 8,293 8,293 4,681 4,626 9,136 8,416 4,946 5,121 Municipal Golf Course
(Desert Willow Golf Resort)
Courses - Fire Cliff and Mountain View 2222222222
Holes 36 36 36 36 36 36 36 36 36 36
Golf Carts 186 172 172 172 172 172 172 172 172 172
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 42,617 48,410 52,415 47,695 38,057 48,646 46,620 39,424 39,366 44,845 Mountain View 46,023 50,160 47,949 49,005 35,332 43,523 43,712 39,931 40,910 42,407 Total Annual Rounds 88,640 98,570 100,364 96,700 73,389 92,169 90,332 79,355 80,276 87,252

Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste (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. 194
711
Note: This section is not required by GASB No. 44, however, City believes that statistical information is beneficial to the reader.

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

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.

City of Palm Desert, California
Supplemental Redevelopment Agency Statistical Section
195
712
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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
196
713
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2024

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 13,960,000
Call Premium 1 - 2.00%
Bond Insurer MBIA
Reserve Requirement (1) 1,574,500
Reserve Balance (1) (1)
Principal Due 23/24 1,145,000
Interest Due 23/24 688,681
Arbritage Yield Rate 4.9502%
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 35,690,000 84,670,000
Bond Insurer BAM BAM
Reserve Requirement (1) 5,840,397 9,027,545
Reserve Balance (1) (1) (1)
Principal Due 23/24 6,630,000 5,585,000
Interest Due 23/24 1,784,500 3,247,275
Arbritage Yield Rate 3.659% 3.659%
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%
Bond Issue Amount $ 7,365,000 $ 45,815,000
Outstanding Bond Amount 4,570,000 -
Bond Insurer BAM BAM
Reserve Requirement (1) 687,519 -
Reserve Balance (1) (1) (1)
Principal Due 23/24 - 475,000
Interest Due 23/24 - 204,769
Arbritage Yield Rate 2.907% 2.907%
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. 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 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)
197
714
City of Palm Desert
Historical Tax Increment/
Redevelopment Property Tax Trust Fund Summary
All Project Areas
Project Area No. 1 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 FY 2023/24 Gross Tax Increment 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 84,972,724 Less:

Housing Set-Aside* 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 16,994,545 SB 2557 686,944 629,449 725,403 662,238 594,754 570,820 858,150 1,503,453 1,246,470 432,274 Gross Pass-Throughs 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 35,580,689 Net Tax Increment 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 31,965,216 RPTTF Amount Deposited 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 12,600,746 Project Area No. 2 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 FY 2023/24 Gross Tax Increment 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 25,160,631 Less:

Housing Set-Aside* 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 5,032,126 SB 2557 192,900 180,457 202,348 187,481 165,500 172,557 243,191 188,413 339,023 150,443 Gross Pass-Throughs 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 10,192,720 Net Tax Increment 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 9,785,341 RPTTF Amount Deposited 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 3,731,112 Project Area No. 3 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 FY 2023/24 Gross Tax Increment 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 5,981,595 Less:

Housing Set-Aside* 751,000 807,980 872,115 872,921 897,544 930,796 989,516 1,003,081 1,046,067 1,196,319 SB 2557 48,901 45,175 52,745 8,947 42,853 41,139 62,062 47,593 84,122 36,511 Gross Pass-Throughs 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 2,438,525 Net Tax Increment 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 2,310,240 RPTTF Amount Deposited 1,237,930 1,290,623 1,295,156 1,422,709 1,451,877 1,563,906 1,519,617 1,200,676 1,000,948 887,021 Project Area No. 4 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 FY 2023/24 Gross Tax Increment 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 22,394,351 Less:

Housing Set-Aside* 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 4,478,870 SB 2557 166,634 154,976 178,812 162,715 145,017 139,433 210,710 166,282 305,520 133,556 Gross Pass-Throughs 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 15,336,829 Net Tax Increment 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 2,445,095 RPTTF Amount Deposited 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 3,320,895 *For calculation purposes only - No requirement to deposit Housing Set Aside post Redevelopment Dissolution. 198
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LSLCPAS.COM
January 27, 2025
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
We have audited the financial statements of 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, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards 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 May 6, 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 [Name of Governmental Unit] are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during Fiscal Year 2024.

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 valuations. We evaluated the methods, assumptions, and data used to develop the pension and other postemployment benefits in determining that it is 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.

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. We are pleased to report that no such misstatements were identified during the course of our audit. 719
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
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.

Management has corrected all such misstatements. 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 27, 2025.

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 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 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 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 the introductory and statistical sections of the Annual Comprehensive Financial Report, 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.
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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
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 2024-2025
GASB Statement No. 101, Compensated Absences.

GASB Statement No. 102, Certain Risk Disclosures.

Fiscal Year 2025-2026
GASB Statement No. 103, Financial Reporting Model Improvements.

GASB Statement No. 104, Disclosure of Certain Capital Assets.

Future Projects
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.

Practice Issue, 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,
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LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

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, 2024, 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 27, 2025.

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.