Agenda packet — Palm Springs City Council, February 27, 2025 (part 3 of 4)

Item 1O - Page 8

1. 2.

3. 4.

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
Name of Entity
p A-vvVJ <(;ftlnJ ,5 fv1r J1J/lJ , Tf'lc
Address of Entity (Principle Place of Business)
[eqz_oo €. f~ C1+,Jyo"' O.e. ' (:,,~11,1.4<--, C-tP'1
Local or California Address (if different than #2)
State where Entity is Registered with Secretary of State CA
C-,4 ')'2-z..?'--/
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If other than California, is the Entitv also reqistered in California? n Yes n No =~-5•=---Iype ofcEntity""~= .. ·-· - - . -------- -- -- -·-···~--·- -- ·-·--- --- ---- - - ·- ~ Corporation D Limited Liability Company D Partnership D Trust D Other (please specify)

CITY OF PALM SPRINGS - PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

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(Revised 09 13 18)
Item 1O - Page 9
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President
Secretary
Chief Financial Officer
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
Assistant Vice President
--·------ -----------· --··- ~~-
Paul J. lhlel
Paul J. Thiel
Pamela Thiel
Pamela Thiel
Trevo·r J. Thiel
Derek J. Thiel
Dalys Simmers
Scott J. Simmers
Joseph A. Gibbs
Holly Thiel
Ramona Thiel .

Rick Rager
Shelly Macias
Trent Hanna
Mike Beaty
GeoffHill ·
Iv1;,1n Rodriguez
Scott Oaks
Item 1O - Page 10

7. Owners/Investors with a 5% beneficial interest in the Aoolicant Entity or a related entity

EXAMPLE
JANE DOE 50%, ABC COMPANY, Inc.
[name of owner/investor] [percentage of beneficial interest in entity __ and name of entity]
A.
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
B. -
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
C.
- ---·- ----··· -·-- - ·----·
~ =-:-::-:::;-:;:_:-; ----=---:-:c=·.----- ----·--- ---- ------- ---=:;----=-:::cc =--- -- __ ------:::-- - ---- -·- -· ----·- [name of owner/investor] [percentage of beneficial interest in entity
and name of entity)
D.
-
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]

I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
(Revised 09 13 18)
rinted Name, Title- Date

CITY OF PALM SPRINGS - PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
11:'\;,1 Page 2 of 2 '(!.)

ATTACHMENT B

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RESOLUTION NO. 18834

OF THE CITY COUNCIL OF THE CITY OF PALM

SPRINGS, CALIFORNIA, ESTABLISHING A INEW
REPLACEMENT POLICY FOR CITY EQUIPMENT.

WHEREAS Resolution No. 14138, adopted on February 3, 1982, modified the City Equipment · Replacement Policy established by Resolution No. 8521, adopted November 8, 1965; and WHEREAS equipment reliability and longevity has increased as technology has b1::ien perfected subsequent to the last update of the Equipment Replacement Policy; and WHEREAS staff, utilizing best management practices during the City's continuing efforts to balance its budget, has endeavored to extend the service of City equipment beyond the established policy life of the equipment; and
WHEREAS it is now desirable to establish a new Equipment Replc1cement Polic:y to formally increase the length of time or mileage the vehicles will be ope1rated by thEi City before replacement; and
WHEREAS it is also desirable to incorporate language related to the introduction of alternate fuel vehicles in the City fleet,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs that:

Section 1:

Section II.

Resolution #14138 and any and all other previous Resolutions related to the City Equipment Replacement are hereby rescinded.

Replacement Schedule: City vehicles shall be replaced in accordance with the following schedule, provided that the Assistant Director of Transportation, Surface Transportation & Energy (Fleet Manager) shall have the responsibility of determining whether exceptionally good or exceptionally poor vehicles shall be replaced in accordance with the Replacement Schedule or possibly retained for a greater or lessor period, and upon such determination, departure from the schedule is allowed, subject to the approval of the Director, Department of Transportation:

REPLACEMENT SCHEDULE
Vehicle Type Replacement

1. Motorcycles 4 years*

2. Staff cars 6 years 01r 70,000 mili3s
(Bought Used)

3. Police Patrol Units 3 years o:r 90,000 mif13s

4. Police Detective Units 6 years or 70,000 milias
(Bought Used)

5. Truck & PickU1ps
A. Light Duty 8 years or 80,000 mil,es
(Up To 3/4 Toni

8. 1 Ton & Over 10 years
*Note: Age is based on model year.

I
I
I
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I
I
Rl8834

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6. Specialized Equipment
(Such as Fire Trucks
Sweepers, etc.)

7. Equipment Loss Due To Accident
To be determined by the Fleet
Manager in consultation with the
user Department, subject to the
approval of the Director,
Department of Transportation based
on physical inspection and analysis
of current operating cost data and
mandated Regulations.

Immediately.

Section Ill. Vehicle Assignment/Rotation: Authorized vehicles are assigned to the various user departments via the budget process. User departments shall determine whom within their department utilizes which vehicle, except that the City Manager shall authorize and assign take-home vehicles. The Fleet Manager, after consulting with user departments, and with the consent of the Director, Department of Transportation, may rotate vehicles between user departments for operational efficiency or to extend the useful life of said vehicle.

Section IV. Methods of Acquisition: The Fleet Manager shall acquire City equipment in accordance with the City's Procurement Ordinance.

Section V. Methods O'f Disposal: The Fleet Manager shall dispose of surplus equipment in accordance with the City's Procurement Ordinance. Surplus equipment may be traded in on new or used equipment provided that the value of the trade shall be included as part of the total expenditure for the purpose of determining Procurement Ordinance limits compliance.

Section VI. Alternate Fuel Vehicles: The Fleet Manager shall make every effort to incorporate alternate fuel vehicles within the fleet via purchase or conversion.

Whenever a vehicle is replaced, that operationally is suited for alternate fuel usage, there is a proven track record for the specific type of vehicle being replaced, and the specific "engine family" is approved for use in California by the California Air Resources Board, the bid shall include a comparison of gasoline/diesel equipment vs alternate fuel equipment.

Section VII. Accessories: After market accessories that are purchased to properly equip a piece of equipment to carry out its designated function, shall be included in the overall capital cost component of the City's Motor Vehicle Replacement account for the particular vehicle to ensure the vehicle user department bears the full cost of its equipment.

Section VIII. Reporting Format: When a vehicle is being replaced requiring City Council approval, the Staff Report shall include the following information:

Vehicle type, Identification Number of the vehicle (except for undercover vehicles), vehicle use characteristics, description of why it is being replaced, special needs or equipment, alternate fuel options/discussion.

ADOPTED this 5th day of June r 1996,
AYES:

NOES:

ABSENT:

ATTEST:

Members Barnes, Hodges, Oden, Spurgin and Mayor Kleindienst None
None

LIFORNIA
~~c>(
\--.::,tity Clerk
REVIEWED & APPROVED AS TO FORM.----"W,___;_,u)_. _____________ _

CITY COUNCIL STAFF REPORT

DATE: FEBRUARY 27, 2025 PUBLIC HEARING

SUBJECT: CONDUCT A PUBLIC HEARING UNDER SECTION 53083 OF THE

CALIFORNIA GOVERNMENT CODE TO APPROVE A HOTEL

OPERATIONS COVENANT BETWEEN THE CITY OF PALM SPRINGS

AND THE DUNES HOTEL, PURSUANT TO MUNICIPAL CODE CHAPTER

5.26 OF THE CITY’S HOTEL OPERATIONS INCENTIVE PROGRAM

FROM: Scott C. Stiles, City Manager

BY: Office of Economic Development Department

SUMMARY:

This action seeks to satisfy the conditions of a public hearing and seeks approval of the economic development subsidy in the form of TOT Operations Covenant Agreement with The Dunes Hotel in support of the renovation of their property located at 390 S. Indian Canyon, Palm Springs.

RECOMMENDATION:

1) Open the public hearing and receive public testimony. 2) Approve a Hotel Operations Covenant Agreement with The Dunes Hotel located at 390 S. Indian Canyon, Palm Springs.
3) Authorize the City Manager and City to make non -substantive changes and execute all necessary documents related to the subsidy.

BUSINESS PRINCIPAL DISCLOSURE:

The property is owned by PS Ventures I, LLC. A Public Integrity Disclosure form is provided as Attachment A.

BACKGROUND:

The City Council adopted Chapter 5.26 of the Palm Springs Municipal Code in December 2007 (amended on May 15, 2013, February 6, 2019, and September 14, 2023) to provide the Program for the operation and maintenance of hotel facilities that enhance the tourist and travel experience for visitors to the City, maximize the use of the City's Convention Center, provide attractive and desirable visitor serving facilities and experiences, and Item 2A - Page 1
City Council Staff Report
February 27, 2025 -- Page 2
The Dunes Hotel Operations Covenant

assist the City in achieving its tourism goals.

In October 2013, Section 53083 was added to the California Government Code. Section 53083 states that before granting an economic development subsidy, each local agency shall provide public notice and conduct a hearing regarding the economic development subsidy. "Economic development subsidy" under Section 53083 means any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee waivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits.

STAFF ANALYSIS:

Operator has committed to a property improvement project that will invest no less than the equivalent of five thousand dollars ($5,000) per room. The renovation project was completed in Spring 2024. Upon City Council approval and after the City’s execution of the Operation Covenant Agreement ( Attachment B ), The Dunes Hotel will provide satisfactory documentation certifying its recent renovation and completion of the project as a qualified renovation under the Program.

The Dunes Hotel is located at 390 S. Indian Canyon and consists of 127 total hotel rooms.

The renovation project included upgraded amenities to improve the guest experience.

The renovation included comprehensive structural improvements that included removal of asepsis popcorn ceiling, installation of new plumbing throughout the entire property, installation of fiber internet throughout the hotel and enclosure of the entire property to ensure guest safety. On the interior, each guest room was redesigned with new flooring, lighting and paint. Each guest room was outfitted with completely renovated bathrooms, featuring new sinks, vanities, shower and/or tub units. On the exterior, the pool deck has been revamped with new tile and plaster for pool and spa, including high efficiency pool equipment. The parking lot has been patched and resurfaced along with designed landscaping to enhance the overall aesthetic environment for the guest. Updated HVAC system and GYM equipment that includes Peloton machines.

Consistent with the provisions of the Program, the Operator now agrees to place restrictions upon the use and operation of the hotel, to ensure that the Project shall be operated and maintained continuously as a hotel available for short-term rentals. The hotel operator also agrees to participate in the Palm Springs Convention Center's Committable Rooms Program and provide designated room nights per month for official City use. City will share a percentage of Transient Occupancy Tax Increment with Operator pursuant to the Program guidelines.

As noted above, California Government Code Section 53083 requires a public hearing for economic development subsidies where expenditure of public funds is in the amount Item 2A - Page 2
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The Dunes Hotel Operations Covenant

of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency. Accordingly, before approving such economic development subsidies, the local jurisdiction is to provide specific information in written form available to the public, and through its Internet Web site.

For the Dunes Hotel, the information is as follows:

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.

Operator is a single purpose entity domiciled in the State of California doing business from 390 S. Indian Canyon, Palm Springs, CA 92262. The Agent for service of process to Operator is The Dunes Hotel, doing business at 390 S. Indian Canyon, Palm Springs, CA 92262.

2. The start and end dates, and schedule, if applicable, for the economic development subsidy.

If approved, the Covenant would provide an economic subsidy to Operator through a term of ten (10) years, or until the Operator has received $7,893,278 pursuant to the Program, whichever event occurs first.

3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

A. The Program provides operating assistance to hotels in the form of a rebate of adjusted transient occupancy tax (“Adjusted TOT”) at a fixed level for existing hotels that meet Program criteria. The City Council has adopted the Phase II Renovation Project Program for improvement projects constructed by an existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room, including this project.

B. Per the Program, the existing hotel project planned by Operator is rebated 50% of adjusted TOT for ten (10) years or until the rebate totals $7,893,278 , whichever comes first. For purposes of the Covenant, an existing Hotel is defined as a property improvement project constructed by an existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room.

The renovation project must commence no more than twelve (12) months after the City’s execution of the Operation Covenant Agreement and be completed no later than December 31, 2024.

C. The public funds to be spent if the City approves this Covenant will be the staff Item 2A - Page 3
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The Dunes Hotel Operations Covenant

costs of administration, and statutorily mandated reporting through the term of the Program rebate/subsidy.

4. A statement of the public purposes for the economic development subsidy.

A. The City Council established the incentive program for the operation and maintenance of quality and first-class hotel facilities which enhance the tourist and travel experience for visitors to the City of Palm Springs, maximize the use of the City’s convention center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. In the implementation of this program, the City Council determined: (1) The general welfare and material wellbeing of the residents of the City of Palm Springs depend in large measure upon the growth and expansion of the tourism and travel industries in the City; (2) The operation, maintenance, and expansion of the inventory of quality hotels and first class hotels in the City of Palm Springs will create desirable visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the City, ensure utilization of the City’s convention center, provide employment opportunities for the residents of the City, and promote and enhance the economy of the City; (3) It is in the best interest of the City of Palm Springs to induce and encourage the operation and maintenance of hotel facilities that would not otherwise exist, thereby creating new sources of tax revenues for the City’s general fund which supports the public services that the City provides its residents; and (4) The authority granted and the purposes to be accomplished are properly local governmental and public purposes for which public funds can be expended and that the operation, maintenance, and expansion of the inventory of quality and first class hotels is of paramount importance to the City of Palm Springs, its residents, and businesses. (Ord. 1730 § 2, 2008)
B. No less than five thousand dollars ($5,000) per room, or if the project includes any common area or amenity, or any other area for guest use at the hotel, the amount of the investment shall not be less than the amount, if any, invested in rooms, added to the total number of rooms at the hotel that will exist at the end of the project multiplied by five thousand dollars ($5,000).

C. The Project would help beautify the neighborhood through and implement energy saving and sustainable components.

5. Projected tax revenue to the local agency as a result of the economic development subsidy.

A. Per the Program, the City will receive 50% of Adjusted TOT for ten (10) years or until the rebate to the Operator totals $ 7,893,278, whichever comes first.

After ten (10) years the City will receive 100% of the TOT revenue (Adjusted TOT plus Unadjusted TOT). Sales tax is approximated at $581,987.

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The Dunes Hotel Operations Covenant

6. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

The Operator anticipates increasing employment by ten (10) full time positions and thirteen (13) part- time positions, for a total of 23 FTEs. The estimated annual payroll for employees and contracted maintenance services is estimated to be $650,000.

Project Description

The Dunes Hotel is located at 390 S. Indian Canyon and consists of 127 total hotel rooms.

The project location is shown below in Figure 1.

Figure 1

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The Dunes Hotel Operations Covenant

No square footage additions were added to the existing The Dunes Hotel buildings. All improvements occurred within the current footprint of the site and were completed on all guest rooms as part of the Project. Additionally, The Dunes Hotel expects the renovations, upgrades, and enhancements to bring a heightened level of experience to the guests, thereby increasing occupancy, revenues and tax receipts.

Images of the upgrades are provided below.

New entry

New Lobby

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The Dunes Hotel Operations Covenant

New Lobby

Pool and Deck Updates
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City Council Staff Report
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The Dunes Hotel Operations Covenant

Room and Case Good Upgrades

Item 2A - Page 8
City Council Staff Report
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The Dunes Hotel Operations Covenant

Bathroom Upgrades
Item 2A - Page 9
City Council Staff Report
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The Dunes Hotel Operations Covenant

ENVIRONMENTAL ASSESSMENT:

The extension of the Program considered at this time is not a “project” for purposes of the California Environmental Quality Act (CEQA), as that term is defined by CEQA guidelines (Guidelines) section 15378. This action is organizational or administrative activity by the City of Palm Springs in furtherance of its police power and will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines.

ALIGNMENT WITH STRATEGIC PLANNING:

Quality of Life, Advance Economic Development – Stimulate investment in activities that create living wage employment opportunities and increase livability of the community.

FISCAL IMPACT:

An amount equal to 50% of transient occupancy tax increment derived from T he Dunes Hotel, over the annual base amount, will be paid to the Operator for a ten- year period.

The maximum pay-out to the recipient cannot exceed $7,893,278 over the 10-year period.

The approximated sales tax revenue is approximately $581,987 annually.

REVIEWED BY:

Department Director: Wayne Olson
City Attorney: Jeffrey Ballinger
City Manager: Teresa Gallavan for Scott C. Stiles

ATTACHMENTS:

A. Public Integrity Disclosure Form
B. Hotel Operations Covenant Agreement – The Dunes Hotel

Item 2A - Page 10

ATTACHMENT A

Item 2A - Page 11
CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTION FOR APPLICANTS)
(Revised 05/16/19)

CITY OF PALM SPRINGS

PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTIONS FOR APPLICANTS)
Who Must File?
Applicants that are NOT a natural person or group of natural people that will be identified on the application, and seek a City approval determined by a vote of City officials . Examples include corporations, limited liability companies, trusts, etc. that seek a City Council approval, or an approval by one of the City’s board or commissions.

Why Must I File?
The City of Palm Springs Public Integrity Ordinance advances transparency in municipal government and assists public officials in avoiding conflicts of interest. The City ’s Public Integrity Ordinance, codified in Chapter 2.60 of the municipal code, reflects the City’s interest in ensuring that companies (and other legal entities that are not natural people) doing business in the community are transparent and make disclosure as to their ownership and management, and further that those companies disclose the identity of any person, with a beneficial ownership interest of five percent (5%) or more.

When Must I File?
You must file this form with the Office of the City Clerk, or designee, at the same time when you file your application for a City approval determined by a vote of City officials, whether elected or appointed.

What Must I Disclose?
A. The names of all natural persons who are officers, directors, members, managers, trustees, and other fiduciaries serving trusts or other types of organizations (attorneys, accountants, etc.).

Note: (1) you must make these disclosures in relation to the applicant entity, and also in relation to any related entity that owns a part of, or makes a profit based upon the business of the applicant entity. Disclosures may include parent, subsidiary or affiliated entities of the applicant entity; (2) if any entity that is not a natural person serves as the applicant entity (e.g. as a member of the applicant LLC), then all officers, directors, members, managers, trustees, etc., of the second entity must be disclosed.

B. The names of persons owning a beneficial interest of five percent (5%) or more in your entity, Owners/investors who have such an interest hold either investment power or voting power, i.e., they can (i) sell or transfer their interest, or (ii) vote their interest in management decisions.

N
OTE: USE ADDITIONAL PAGES AS NECESSARY
What if I Have Questions?
If you have any questions about how to complete this form, please contact the Office of the City Clerk, (760) 323-8206, [email protected].

Item 2A - Page 12
City of Palm Springs
Public Integrity Disclosure
Supplementary Instructions
In an effort to ensure we capture the required business entity information in accordance with the attached instructions, we provide you these s upplementary instructions to clearly identify the required information, and the format the information should be provided.

If you, as the applicant, are a business entity (i.e. a corporation or limited liability company), and it is also comprised of other business entities as its members or having a financial interest, all other such business entities must also be disclosed, including those entities other business entities, if any.

Ultimately, the City’s disclosure document (attached) requires a listing identifying all natural persons having any financial interest over 5% of the business entities (and any other business entities comprising your business entity)
As an example , Applicant is: Acme Brothers, Inc., a California corporation, whose officers are: John Doe, Jill Doe, and Jay Doe, which is owned 50% by Acme Brother s, LLC, a California limited liability company, and John Doe (25% interest) and Jill Doe (25% interest). Acme Brothers, LLC, is managed by Acme Brothers 2, Inc., a California corporation, whose officers are: George Doe, Bill Doe, and Jane Doe, which is owned 100% by Acme Brothers 2, LLC, a California limited liability company , which is managed by George Doe, with George Doe and Jane Doe having 50% interest each.

The full business entity disclosure in this example would resemble the following:

1. Acme Brothers, Inc., a California corporation (PID Form 1) a. Officers: John Doe, Jill Doe, and Jay Doe page 1
b. Ownership: page 2
i. 50% Acme Brothers, LLC, a California limited liability company ii. 25% John Doe
iii. 25% Jill Doe

2. Acme Brothers, LLC, a California limited liability company (PID Form 2) a. Managers: Acme Brothers 2, Inc., a California corporation page 1 b. Ownership: 100% Acme Brothers 2, Inc., a California corporation page 2

3. Acme Brothers 2, Inc., a California corporation (PID Form 3) a. Officers: George Doe, Bill Doe, and Jane Doe page 1
b. Ownership: 100% Acme Brothers 2, LLC, a California limited liability company page 2

4. Acme Brothers 2, LLC, a California limited liability company (PID Form 4) a. Managers: George Doe page 1
b. Ownership: page 2
i. 50% George Doe
ii. 50% Jane Doe
Item 2A - Page 13
The full disclosure listing of natural persons with financial interest in Acme Brothers, Inc., a California corporation, would represent the following:

1. John Doe, 25%

2. Jill Doe, 25%

3. George Doe, 25%

4. Jane Doe, 25%
In order for you, as an applicant, to disclose to appropriate City officials any potential conflict of interest, it is critical that all managers, members, corporate officers, and all natural persons having any financial interest of 5% or more be identified. Failure to identify all such persons may be cause for any action approved by the City to be declared null and void.

Item 2A - Page 14
CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 1 of 2 ends

(Revised 05/16/19)

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principle Place of Business)

3. Local or California Address (if different than #2)

4. State where Entity is Registered with Secretary of State If other than California, is the Entity also registered in California?  Yes  No

5. Type of Entity
 Corporation  Limited Liability Company  Partnership  Trust  Other (please specify)

6. Officers, Directors, Members, Managers , Trustees, Other Fiduc iaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other entity _________________________________________________  Manager [name]
 General Partner  Limited Partner
 Other ____________________________________
_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner
 Other ____________________________________
_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner
 Other ____________________________________
PS Ventures I, LLC dba The Dunes Hotel
390 S. Indian Canyon, Palm Springs CA 92262
1303 Avocado Ave Suite 200, Newport Beach CA 92660
Delaware
X
X

STEVE OLSON X
X

CHRISTOPHER REEDY

APRIL SMITH
X
Item 2A - Page 15
CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 2 of 2 ends

(Revised 05/16/19)

7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity

EXAMPLE

JANE DOE
[name of owner/investor]
50%, ABC COMPANY, Inc.
[percentage of beneficial interest in entity
and name of entity]
A.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]

I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signature of Disclosing Party, Printed Name, Title Date

PENALTIES
Falsification of information or failure to report information required to be reported may subject you to administrative action by the City.

Reedy Family Partnership 2 5.59%, PS VENTURES I, LLC

5.59%, PS VENTURES I, LLC

12.20%, PS VENTURES I, LLC
F+J Olson Family Trust
Conway Family Trust
Schultz Family Trust
PS Platinum Properties, LLC

5.59%, PS VENTURES I, LLC
APRIL SMITH, DIRECTOR 05/24/24
Item 2A - Page 16

ATTACHMENT B

Item 2A - Page 17
1 FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

THE CITY OF PALM SPRINGS
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: City Clerk
(Space Above This Line for Recorder's Office Use Only)

OPERATIONS COVENANT

THIS OPERATIONS COVENANT AND DECLARATION OF COVENANTS AND RESTRICTIONS ("A greement" or “Covenant”) is made and entered into this day of , 2025 , by and between the CITY OF PALM SPRINGS, a municipal corporation and charter city ("City"), and PS Ventures 1, LLC a California Limited Company ("Owner" or “Participant”).

R E C I T A L S :

A. The City of Palm Springs adopted Chapter 5.26 of its Municipal Code in December, 2007 to provide a Hotel Operations Incentive Program ("Program") for the operation and maintenance of Hotel facilities that enhance the tourist and travel experience for visitors to the City, maximize the use of the City's Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. (Chapter 5.26 of the Municipal code is incorporated herein by reference and defined terms therein shall, unless otherwise indicated, have the same meanings herein.)
B. On February 6, 2019, the City of Palm Springs amended Chapter 5.26 of its Municipal Code (“PSMC”) to re-establish the Program for Renovation Hotels as defined in Chapter

5.26 of the PSMC for the operation and maintenance of Hotel facilities that enhance the tourist and travel experience for visitors to the City, that assist the City in achieving its tourism goals.

C. On September 14, 2023, the City of Palm Springs amended Chapter 5.26 of its Municipal Code (“PSMC”) to extend the Program until December 31, 2028.

D. On Oc
tober 25, 2024, Owner applied for the Program and has provided satisfactory documentation certifying its renovation project as a qualified renovation program under the Program.

The Dunes H otel ("Owner's Hotel" or "Project"), generally located at 390 S Indian Canyon, Palm Springs, California, consists of 127 rooms total hotel rooms on that certain real property located in the City of Palm Springs, County of Riverside , State of California, legally described on the Legal Description attached hereto as Exhibit "A" and incorporated herein by reference (the "Site").

E. City and Owner now desire to place restrictions upon the use and operation of the Project, in order to ensure that the Project shall be operated continuously as a hotel available for short-term rental for the term of this Agreement.

F. City and Owner also agree that in return for participation in the Program, Owner shall agree to operate the Project as a hotel; participate in the Palm Springs Convention Center's Item 2A - Page 18
2 Committable Rooms Program; and provide City with a minimum of two (2) room-nights per month for official City use; and, City agrees to share a percentage of Transient Occupancy Tax Increment with Owner pursuant to the Program guidelines.

G. The City finds that the approval of this Covenant is Categorically Exempt from CEQA under Section 15301 of the California Administrative Code as the Hotel Operations Incentive Program applicable to Owner's Hotel applies to the operation, repair, maintenance, or minor alteration of existing structures, facilities, mechanical equipment involving no material expansion of use beyond that previously existing.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Participant hereby conveys to the City the Operating Covenants described herein and City hereby agrees to provide Owner with funds as provided under the Program and as set forth hereinafter.

ARTICLE 1

STATEMENT OF OPERATING COVENANTS

1.1. OP
ERATION AND USE COVENANT . Upon occupancy, Owner covenants to operate, maintain, and use The Dunes Hotel in accordance with this Agreement. All uses conducted on the Site, including, without limitation, all activities undertaken by the Owner pursuant to this Agreement shall, in all material respects, conform to requirements of this Agreement and Palm Springs Municipal Code (PSMC).

1.2. HOTE
L USE. The Owner hereby agrees that the Project is to be owned, managed, and operated as a hotel (as defined by 5.36.020 of the PSMC) in a first-class manner, and the Project's participation in the Program shall continue in accordance with the terms of the Program, for a term equal to ten (10) years, commencing upon the date Owner first receives from the City the Owner's share of transient occupancy tax revenues pursuant to the Program unless and until Owner's participation in the Program is terminated prior thereto in accordance with this Agreement (the "Term").

1. Housing Uses Prohibited. N
one of the rooms in the Project will at any time be
utilized as a non -transient residential property including dormitory, fraternity or sorority house, rooming house, nursing home, hospital, sanitarium, or trailer court or park without the City's prior consent which consent may be given or withheld in its sole and absolute discretion.

2. Conversion of Project. N
o part of the Project will at any time be owned by a
cooperative housing corporation, nor shall the Owner take any steps in connection with the conversion to such ownership or uses to condominiums, or to any other form of ownership, without the prior written approval of the City Council which approval may be given or withheld in its sole and absolute discretion.

Item 2A - Page 19
3 ARTICLE 2

WARRANTIES AND COVENANTS

2.1. W ARRANTIES AND COVENANTS. For the Term of this Agreement, the Owner hereby represents, covenants, warrants and agrees as follows:

1. Owner has completed the City's application for the Hotel Operations Incentive Program. The City has determined the Transient Occupancy Tax Base to be used to calculate the Transient Occupancy Tax Increment shall be $ 142,387.44, and the Owner accepts such Transient Occupancy Tax Base.

2. Owner hereby agrees to subscribe to the Palm Springs Convention Center's Committable Rooms Program or any similar successor program as identified by the City Manager without being obligated to incur any additional costs or expenses.

3. Upon City's prior request, Owner shall provide the City at no cost two (2) rooms for one (1) night (or 1 room for 2 nights) other than Friday or Saturday nights each month for use for City purposes as approved or designated by the City Manager, provided that such use by the City shall be subject to the rooms being available at the time of the City's request. Such accommodations shall include all services and amenities for which the Owner would normally collect transient occupancy taxes but will not include services and amenities that are optional to the transient and for which the transient is not required to pay a transient occupancy taxes. City shall be responsible for any transient occupancy taxes for any occupancy provided to City under the provisions of this paragraph. Notwithstanding anything in this Agreement to the contrary, if the City does not use rooms during any month, then its right to use rooms with respect to that month shall expire at the end of that month and shall not accrue; provided, however, if the City was unable to use rooms solely because Owner's Hotel had no rooms available when the City requested a room in accordance with this Section

2.1.3, then, the City's right to use rooms shall not expire and may be used by the City in the next subsequent month.

ARTICLE 3

MAINTENANCE

3.1. M
AINTENANCE .

1. Maintenance Obligation . Owner, for itself and its successors and assigns, hereby covenants and agrees to maintain and repair or cause to be maintained and repaired the Site and all related on -site improvements and landscaping thereon, including, without limitation, buildings, ame nities, parking areas, lighting, signs and walls in a first class condition and repair, free of rubbish, debris and other hazards to persons using the same, and in accordance with all applicable laws, rules, ordinances and regulations of all federal, state, and local bodies and agencies having jurisdiction, at Owner's sole cost and expense. Such

maintenance and repair shall include, but not be limited to, the following:
(i) s weeping and trash removal; (ii) the care and replacement of all irrigation, shrubbery, plantings, and other landscaping to maintain it in a healthy condition; and (iii) the repair, Item 2A - Page 20
4 replacement and restriping of asphalt or concrete paving using the same type of material originally installed, to the end that such paving at all times be kept clearly marked and in a level and smooth condition. In addition, Owner shall be required to maintain the Property in such a manner as to avoid the reasonable determination of a duly authorized official of the City that a public nuisance has been created by the absence of adequate maintenance such as to be detrimental to the public health, safety or g eneral welfare or that such a condition of deterioration or disrepair causes appreciable harm or is materially detrimental to property or improvements within one thousand (1,000) feet of such portion of the Site.

2. P
arking and Driveways . The driveways and traffic aisles on the Site shall be kept clear and unobstructed at all times.

3. Right of Entry . In the event Owner fails to maintain the Site in the above - mentioned condition, and satisfactory progress is not made in correcting the condition within thirty (30) days from the date of written notice from City (which notice shall reasonably identify the required maintenance), City may, at City's option, and without further notice to Owner, declare the unperformed maintenance to constitute a public nuisance. Thereafter, either City or its employees, contractors, or agents, may cure Owner's default by entering upon the Site and performing the necessary landscaping and/or maintenance in accordance with Section 3.1.1 above. The City shall give Owner, its representative, or the residential manager reasonable notice of the time and manner of entry, and entry shall only be at such times and in such manner as is reasonably necessary to carry out this Agreement. Owner shall pay such costs as are reasonably incurred by City for such maintenance, including attorneys' fees and costs.

4. Lien. If
any costs incurred by City under Section 3 above are not reimbursed within thirty (30) days after Owner's receipt of City's written request for reimbursement, the same shall be deemed delinquent, and the amount thereof shall bear interest thereafter at a rate of the lower of ten percent (10%) per annum or the legal maximum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorney's fees, shall be an obligation of Owner as well as a lien and charge, with power of sale, upon the property interests of Owner, and the rents, issues and profits of such property. City may bring an action at law against Owner obligated to pay any such sums or foreclose the lien against Owner's property interests. Any such lien may be enforced by sale by the City following recordation of a Notice of Default of Sale given in the manner and time required by law as in the case of a deed of trust; such sale to be conducted in accordance with the provisions of Section 2924, et seq., of the California Civil Code, applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted by law.

Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or
deed of trust covering an ownership interest or leasehold or sub leasehold estate in and to any Site approved by City pursuant to the Agreement, and any purchaser at any foreclosure or trustee's sale (as well as any deed or assignment in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall take title free from any such monetary lien, but otherwise subject to the provisions hereof; provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided for herein to the extent they relate to the expenses incur red subsequent to such foreclosure, Item 2A - Page 21
5 assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject Site after the date of such foreclosure sale, shall become a lien upon such Site upon recordation of a Notice of Assessment or Notice of Claim of Lien as herein provided.

ARTICLE 4

COMPLIANCE WITH LAWS

4.1. C OMPLIANCE WITH LAWS. Owner shall comply with all ordinances, regulations, and standards of the City applicable to the Site. Owner shall comply with all rules and regulations of any assessment district of the City with jurisdiction over the Site.

4.2. P REV AILING WAGE . In accordance with California Labor Code section 1781(a)(2), the Participant acknowledges that the City has expressly indicated to the Participant and persons associated with the Participant that laborers employed relative to the construction of the Project must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et seq. and Palm Springs Municipal Code Section

7.06.030(1). The Participant agrees with the City that the Participant shall assume the responsibility and be solely responsible for payment of the prevailing per diem wage rate for their labor classification.

T
he Participant, on behalf of itself, its successors, and assigns, waives and releases the City from any right of action that may be available to it pursuant to California Labor Code Sections 1726 and 1781.

The Participant acknowledges the protections of Civil Code Section 1542 relative to the waiver and releases contained in this section 4.2, which reads as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR

OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR

HER FA VOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN

BY HIM OR HER, WOULD HA VE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED THE PARTY .”

BY INITIALING BELOW, THE PARTICIPANT KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 SOLELY IN CONNECTION WITH THE WAIVERS AND RELEASES OF THIS SECTION 4.2.

____________
Participant’s Initials

Additionally, in accordance with this section 4.2, the Participant shall indemnify, defend with counsel acceptable to the City, and hold the City harmless against any claims pursuant to California Labor Code Sections 1726 and 1781 arising from this Covenant or the construction or operation of the Project.

Item 2A - Page 22
6 ARTICLE 5

NONDISCRIMINATION

5.1. NONDI SCRIMINATION. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, gender, sexual orientation, gender identity, gender expression, marital status, national origin, ancestry, physical or mental disability, or medical condition in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, or any part thereof, nor shall Owner, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of guests or vendees of the Site, or any part thereof.

ARTICLE 6

COVENANTS TO RUN WITH THE LAND

6.1. C
OVENANTS TO RUN WITH THE LAND. Owner hereby subjects the Site to the covenants, reservations, and restrictions set forth in this Agreement. City and Owner hereby declare their express intent that all such covenants, reservations, and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors in title to the Site; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions shall expire. All covenants without regard to technical classification or designation shall be binding for the benefit of the City, and such covenants shall run in favor of the City for the entire term of this Agreemen t, without regard to whether the City is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Site or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed or other instrument.

City and Owner hereby declare their understanding and intent that the burden of the covenants s
et forth herein touch and concern the land in that Owner's legal interest in the Site is rendered less valuable thereby. City and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and includes the enjoyment and use of the Project by the intended beneficiaries of such covenants, reservations, and restrictions, and by furthering the public purposes for which the City was formed.

Owner, in exchange for the City entering into the Agreement, hereby agrees to hold, sell, and convey the Site subject to the terms of this Agreement. Owner also grants to the City the right and power to enforce the terms of this Agreement against the Owner and all persons having any right, title or interest in the Site or any part thereof while such party owns the Site. No party shall have any liability or obligation in connection with any breach occurring while such party is not the owner of the Site.

Within fifteen (15) business days after request of Owner, City shall execute and provide to Owner an estoppel certificate, in the form approved by the City Attorney of the City, confirming whether or not Owner is in breach of any obligations under this Agreement and identifying any required cure.

Item 2A - Page 23
7 ARTICLE 7

INDEMNIFICATION

7.1. GE NERAL INDEMNIFICATION. Participant agrees, for itself and for its successors and assigns, to indemnify, defend with counsel acceptable to the City, and hold the City, together with its officers, members, officials, employees, agents, volunteers, and representatives, harmless from and against any loss, liability, claim or judgment arising from or related to Participant’s participation in the Hotel Operations Incentive Program pursuant to Palm Springs Municipal Code Chapter 5.26.

7.2. A
TTORNEYS' FEES . In the event that a party to this Agreement brings an action against the other party hereto by reason of the breach of any condition, covenant, representation or warranty in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable expert witness fees, and its reasonable attorney's fees and costs. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery.

7.3. AMENDMENTS. T
his Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside.

7.4. NOTI
CE. Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery, certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the parties hereto:

City: C
ity of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: City Manager
Copy to: Office of the City Attorney
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: City Attorney

Owner: PS Ventures I, LLC
The Dunes Hotel
390 S Indian Canyon
Palm Springs, CA 92262
Attn: April Smith

The notice shall be deemed given three (3) business days after the date of mailing, or, if personally delivered, when received.

Item 2A - Page 24
8 7.5. SEVERABILITY/WAIVER/INTEGRATION

1. Severability. If any provision of this Agreement or portion thereof, or the application to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of the provisions, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby; provided, that if any material terms or provisions of these Operating Covenants are rendered invalid, void and/or unenforceable, or due to changes in the law such terms or provisions would materially alter the terms of the transactions contemplated herein, the parties agree to meet and negotiate in good faith to attempt to reform these Operating Covenants to accomplish the intent of the parties.

2. Waiver. A
waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right.

3. Integration. T
his Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement.

4. Third Parties. No
third-party beneficiaries are intended, and the only parties who are entitled to enforce the provisions of these Operating Covenants are the City, Mortgagees, Participant and their respective successors and assigns.

7.6. GOVER
NING LAW. This Agreement shall be governed by the laws of the State of California and is subject to the provisions of Government Code Section 53083.

7.7. COUNTERPARTS. T his Agreement may be executed in any number of counterparts, each of which shall constitute one original and all of which shall be one and the same instrument.

7.8. TERMINATION. This Agreement may be terminated only (i) by and upon expiration of the Term, (ii) by mutual written agreement of the parties, and (iii) by and pursuant to the provisions of Section 7.9 or 7.10 below. In the event of any termination of this Covenant, Owner (or its successor, as applicable) shall not be obligated to return any amounts previously paid to it by the City pursuant to the Program.

7.9. DEFAULT BY OWNER. I
f at any time during the Term, City contends that Owner has committed a material default with respect this Agreement, e.g., by failing to operate the Hotel as a Hotel, City shall deliver to Owner written notice of default which specifies in detail all facts alleged by City to constitute such default. For a period of thirty days thereafter, Owner will have the right to commence and complete cure of the alleged default; provided, however, if the alleged default is of such a nature as to reasonably require more than thirty days to cure, and the Parties so agree, Owner will have such addition time as is reasonably necessary to complete such cure. Subject to Section

7.11 below, if Owner fails to timely cure such default, City shall then have the right to terminate this Agreement. (To the extent of any inconsistency between the provisions of this Section 7.9 and the provisions of Section 3.1 above, the provisions of this Section 7.9 shall prevail.) Item 2A - Page 25
9 7.10 DE FAULT BY CITY. If at any time during the Term, Owner contends that City has committed a material default with respect this Agreement, Owner may deliver to City written notice of default that specifies in detail all facts alleged by Owner to constitute such default. For a period of thirty days thereafter, City will have the right to commence and complete cure of the alleged default; provided, however, if the alleged default is of such a nature as to reasonably require more than thirty days to cure, and the Parties so agree, City will have such addition time as is reasonably necessary to complete such cure. Subject to Section 7.11 below, if City fails to timely cure such default, Owner shall then have the right to terminate this Agreement or exe rcise any and all other rights and remedies available at law and in equity, and each of such rights and remedies shall be cumulative and not exclusive.

7.11 M
ORTGAGE PROVISONS . Anything in this Agreement to the contrary notwithstanding, with respect to any recorded mortgage or deed of trust given in good faith and for value and encumbering the Hotel (“Mortgage”), any holder thereof that has delivered to City a copy of such recorded Mortgage and current contact information (“Mortgagee”) will be entitled rights and benefits in accordance with the following:

1. City acknowledges and agrees that the rights and obligations of Owner under this Agreement may, with or without approval by City, be conditionally assigned by Owner to any Mortgagee as security for performance of Mortgage obligations.

2. While any Mortgage remains in effect, City will not amend or modify this Agreement in any material respect without receiving prior written approval from Mortgagee, which approval may not be unreasonably withheld, delayed or conditioned; provided, however, failure by Mortgagee to provide written approval or disapproval (and if disapproval the reasons therefor) within thirty days of delivery of request therefor shall be deemed to constitute approval by Mortgagee.

3. While any Mortgage remains in effect, in the event City delivers to Owner of any notice of default as referenced in either Section 3.1 or 7.9 above, City shall concurrently deliver a copy thereof to Mortgagee.

4. Delivery of any such notice of default notwithstanding, City will not terminate or initiate or pursue any action to terminate this Agreement as long as Mortgagee diligently (i) declares a default by Owner under the Mortgage, (ii) pursues foreclosure and/or other appropriate actions under the Mortgage, (iii) pays to City all amounts that would otherwise have been payable by Owner to City, and (iv) cures non-monetary defaults.

7.12 O
perator Provisions . City acknowledges and agrees that operational obligations of Owner may, with or without consent of City, be assigned by Owner to any entity owned or wholly controlled by Owner or its Members or Hotel Operator of Owner’s choice, and, in connection therewith, such Hotel Operator may assume all or part of Owner’s Hotel operation obligations under this Agreement; provided, however, Owner shall retain ultimate responsibility for such Hotel operation obligations. City agrees that while any Hotel Operator agreement is in effect, and provided that City has been put on notice of such agreement and received contact information for such Operator, in the event City delivers to Owner of any notice of default as referenced in either Section

3.1 or 7.9 above, City shall concurrently deliver a copy thereof to the Operator.

Item 2A - Page 26
10 7.13 RESERVED.

7.14 C ooperation. Each party agrees to and shall do and perform such other and further acts and properly execute and deliver such other and further documents as may be reasonably necessary, expedient or convenient to implement and/or effectuate the intents and purposes here of.

City and Owner agree to cooperate with each other and/or with any Mortgagee or proposed Mortgagee, in a manner consistent with concepts and principles of good faith, fair dealing and commercial reasonableness, with respect to consideration , implementation and execution of any modification(s) to this Agreement reasonably requested by the City, Owner, Mortgagee or proposed Mortgagee.

7.15 Reasonable Approvals. Wh
enever this Agreement requires or calls for the approval or consent of any party hereto, such approval shall not be unreasonably withheld, delayed or conditioned.

7.16 B
inding Arbitration. In the event of any dispute or controversy arising out of or relating to this Agreement, or the breach or performance of it, the parties shall reasonably attempt to resolve such dispute or controversy without resort to third party review or resolution. The parties shall first meet and confer on any such dispute or controversy. Such meeting(s) shall include any principal of the Owner and, at the discretion of the City, may include the City Manager and/or the City Council, either as a whole or through an ad hoc subcommittee designated by the City Council.

Upon a determination by the parties that they are or will be unable to resolve the dispute or controversy on their own, then the parties shall submit the dispute, controversy or any remaining unresolved matter to binding arbitration, to be held in the Coachella Valley, and be conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association.

7.17 I
ncorporation of Recitals and Exhibits . Each of the recitals set forth above and each of the exhibits attached hereto are agreed to and made part of this Agreement.

7.18 A uthority. Each party represents and warrants to the other that such party has full right, power and authority to sign, execute and enter into this Agreement.

[E
ND -- SIGNATURES ON NEXT PAGE]
Item 2A - Page 27
11 IN WITNESS WHEREOF, the City and Owner have executed this Operations Covenant by duly authorized representatives on the date first written hereinabove. "CITY"

THE CITY OF PALM SPRINGS,
a municipal corporation and charter city
By:

ATTEST:

Scott C. Stiles, ICMA-CM
City Manager

Brenda Pree, MMC, CERA
City Clerk

APPROVED AS TO FORM:

BEST, BEST & KRIEGER

By:

Jeffrey Ballinger, Esq.

City Attorney

P
S Ventures 1, LLC a California Limited Company

By:

April Smith
General Manager

[E
ND OF SIGNATURES]
Item 2A - Page 28
12 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189

State of California )
County of )
On before me, ,
Date Here Insert Name and Title of the Officer
personally appeared
Name(s) of Signer(s)
,

who 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.

I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
Signature of Notary Public

Place Notary Seal Above

OP TIONAL
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Description of Attached Document
Title or Type of Document: Document Date:

Number of Pages: Signer(s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer’s Name:

Corporate Officer — Title(s):

Signer’s Name:

Corporate Officer — Title(s):

Partner — Limited General Partner — Limited General
Individual Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other:

Signer Is Representing:

Other:

Signer Is Representing:
©2014 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 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.

Item 2A - Page 29-
. . - - . . - - - - .

LEGAL DESCRIPTION
EXHIBIT “A”

1.70 ACRES M/L IN POR SW ¼ OF SEC 14 T4S R4E
FOR TOTAL DESCRIPTION SEE ASSESSOR’S MAPS
TOWNSHIP N 4 ACRES 001.70M/L SECTION 14
PORTION ¼ RANGE 04 PORTION DIRECTION S RANGE DIRECTION E

OPERA TIONS COVENANT

FOR HOTEL INCENTIVE PROGRAM

1 Item 2A - Page 30

CITY COUNCIL STAFF REPORT

DATE: FEBRUARY 27, 2025 BUSINESS & LEGISLATIVE

SUBJECT: FISCAL YEAR 2023-24 FINANCIAL AUDIT REPORTS OF THE CITY OF

PALM SPRINGS

FROM: Scott C. Stiles, City Manager

BY: Department of Finance and Treasury

SUMMARY:

The certified public accounting firm of The Pun Group, LLC, completed the annual financial reports of the City as of June 30, 2024.

RECOMMENDATION:

Receive and file the following Financial Audit Reports for the fiscal year June 30, 2024:

• Annual Comprehensive Financial Report (ACFR)
• Audit Communication Letter to the City Council
• Passenger Facility Charge Report (PFC)
• Housing Successor Audit Communication Letter to the City Council • Public Financing Authority Financial Statements
• Independent Accountant’s Agreed Upon Procedures to Appropriations (GANN) • Measure D Independent Accountant's Agreed Upon Procedures • Measure A Independent Accountant's Agreed Upon Procedures ( Conrad CPA Firm)
• Measure J Financial Statements and Independent Auditor’s Report • Single Audit and Independent Auditor's Report

STAFF ANALYSIS:

Based on the results of their audit, The Pun Group provided the City with an unmodified opinion on the financial statements which means that the City’s financial statements are fairly presented in all material respects and are in accordance with Generally Accepted Accounting Principles (GAAP).

The specific financial documents on which the auditor expresses an opinion are : 1) the Item 3A - Page 1
City Council Staff Report
February 27, 2025 -- Page 2
FY 2023-24 Financial Audit Reports of the City of Palm Springs

financial statements, and 2) notes to the basic financial statements which include required supplementary information. These documents, along with the auditor’s opinion , Audit communication letter, and report on internal controls form the core of the Annual Comprehensive Financial Report (ACFR).

Additional documents that make up the ACFR include the letter of transmittal, management’s discussion and analysis (MD&A), and a supplemental section which includes a statistical section presenting detailed information to assist the reader in assessing the economic condition of the City.

The Measure J Annual Financial Report was presented to the Measure J Commission and accepted at the February 20, 2025 Commission Meeting.

The FY 2023- 24 audited financial reports are available on the City’s webpage at the following link:
https://www.palmspringsca.gov/government/departments/finance- treasury/comprehensive-annual-financial-report

Hard copies of the reports are available by request to the Department of Finance and Treasury.

FISCAL IMPACT:

None.

REVIEWED BY:

Department Director: Kristopher J. Mooney
City Manager: Scott Stiles

ATTACHMENTS:

A. Annual Comprehensive Financial Report (ACFR)
B. Audit Communication Letter
C. Passenger Facility Charge Report (PFC)
D. Housing Successor Audit Communication Letter
E. Public Financing Authority Financial Statements
F. Independent Accountant’s Agreed Upon Procedures to Appropriations (GANN) G. Measure D Independent Accountant's Agreed Upon Procedures H. Measure A Independent Accountant's Agreed Upon Procedures (Conrad CPA Firm)
I. Measure J Financial Statements and Independent Auditor’s Report J. Single Audit and Independent Auditor’s Report

Item 3A - Page 2

ATTACHMENT A

Item 3A - Page 3
Item 3A - Page 4
Item 3A - Page 5
City of Palm Springs
Palm Springs, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Prepared by:

Finance Department
Kristopher Mooney
Director of Finance and Treasurer
Item 3A - Page 6
City of Palm Springs
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ....................................................................................................................................................... i List of Principal Officials ........................................................................................................................................... viii Organizational Chart ..................................................................................................................................................... ix GFOA Certificate of Achievement for Excellence in Financial Reporting ................................................................... x

FINANCIAL SECTION
Independent Auditors' Report on the Audit of the Financial Statements .............................................................. I Management's Discussion and Analysis (Required Supplementary Information) (Unaudited) .......................... 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ............................................................................................................................... 18 Statement of Activities ................................................................................................................................... 20 Fond Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ........................................................................................................................................... 27 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ......................................................................... 29 Statement of Revenues, Expenditures, and
Changes in Fund Balances ................................................................................................................. 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................................................................................................... 32 Proprietary Fund Financial Statements:

Statement of Net Position ........................................................................................................................ 34 Statement of Revenues, Expenses, and Changes in Net Position ............................................................ 37 Statement of Cash Flows .......................................................................................................................... 38 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ........................................................................................................ 43 Statement of Changes in Fiduciary Net Position ..................................................................................... 44 Notes to the Basic Financial Statements ............................................................................................................ 47 Item 3A - Page 7
City of Palm Springs
Annnal Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule:

General Fund ................................................................................................................................................ I 03 Notes to the Required Supplementary Information .......................................................................................... 105 Schedule of Changes in the Net Pension Liability and Related Ratios:

CalPERS Miscellaneous Plan ....................................................................................................................... I 06 CalPERS Safety Plan .................................................................................................................................... I 08 Schedule of Plan Contributions -Pension:

CalPERS Miscellaneous Plan ....................................................................................................................... 110 CalPERS Safety Plan .................................................................................................................................... 112 Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................................. 114 Supplementary Information:

Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

Measure J Capital Projects Fund .................................................................................................................. 119 Capital Projects Fund ............................................................................... , .................................................... 120 Nonmajor Govemmental Funds:

Description ofNonmajor Governmental Funds ........................................................................................... 121 Combining Balance Sheet ............................................................................................................................ 123 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 130 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:

Forfeiture Revenue Fund ....................................................................................................................... 137 Safety Augmentation Special Revenue Fund ......................................................................................... 138 CSA 152 Special Revenue Fund ............................................................................................................ 139 Recycling AB 929 Special Revenue Fund ............................................................................................. 140 Gas Tax Special Revenue Fund ............................................................................................................. 141 Measure A Improvements Special Revenue Fund ................................................................................. 142 Drainage Construction Special Revenue Fund ...................................................................................... 143 Community Development Block Grant Special Revenue Fund ............................................................. 144 Air Quality Management Special Revenue Fund ................................................................................... 145 Public Arts Special Revenue Fund ......................................................................................................... 146 Library Special Revenue Fund ............................................................................................................... 147 Quimby Act Fees Special Revenue Fund ............................................................................................... 148 Item 3A - Page 8
City of Palm Springs
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
FINANCIAL SECTION (Continued)
Supplementary Information (Continued):

Nonmajor Governmental Funds (Continued):

Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual (Continued):

Special Projects Special Revenue Fund ................................................................................................. 149 CFO Public Safety # I Special Revenue Fund ........................................................................................ 150 Park Maintenance Special Revenue Fund .............................................................................................. 151 Emergency Response Special Revenue Fund ........................................................................................ 152 Sustainability Special Revenue Fund ..................................................................................................... 153 Housing Special Revenue Fund ............................................................................................................. 154 Small Hotel TBID Special Revenue Fund ............................................................................................. 155 SB 1-RMRA Special Revenue Fund ....................................................................................................... 156 Parking Projects Capital Projects Fund .................................................................................................. 157 CFO Canyon View Capital Project Fund ............................................................................................... 158 Special Assessments Debt Service Fund ................................................................................................ 159 General Debt Service Fund .................................................................................................................... 160 Internal Service Funds:

Combining Statement of Net Position .......................................................................................................... 164 Combining Statement of Revenues, Expenses, and Changes in Net Position .............................................. I 66 Combining Statement of Cash Flows ........................................................................................................... 168 Item 3A - Page 9
City of Palm Springs
Annual Comprehensive Financial Report
For the Year Ended Jone 30, 2024
Table of Contents (Continued)
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ............................................................................................................... 171 Financial Trends:

Net Position by Component ................................................................................................................................ 172 Changes in Net Position ...................................................................................................................................... 174 Fund Balances of Governmental Funds .............................................................................................................. 178 Changes in Fund Balances of Governmental Funds ........................................................................................... 180 Revenue Capacity:

Assessed Value of Taxable Property ................................................................................................................... 182 Principal Property Taxpayers .............................................................................................................................. 183 Direct and Overlapping Property Tax Rates ....................................................................................................... 184 Property Tax Levies and Collections .................................................................................................................. 185 Debt Capacity:

Ratios of Outstanding Debt by Type ................................................................................................................... 186 Ratio of General Bonded Debt Outstanding ....................................................................................................... 188 Direct and Overlapping Governmental Activities Debt.. .................................................................................... 189 Legal Debt Margin Information .......................................................................................................................... 190 Pledged-Revenue Coverage ................................................................................................................................ 192 Demographic and Economic Information:

Demographic and Economic Statistics ................................................................................................................ 193 Principal Employers ............................................................................................................................................ 194 Operating Information:

Full-Time Equivalent City Employees By Department ...................................................................................... 195 Operating Indicators by Function ........................................................................................................................ 196 Capital Asset Statistics By Function ................................................................................................................... 198 Principal Sales Tax Producers ............................................................................................................................. 199 Item 3A - Page 10
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ANNUAL COMPREHENSIVE

FINANCIAL REPORT
Item 3A - Page 11
December 31, 2024
City of Palm Springs
Department of Finance & Treasury
3200 E. Tahquitz Canyon Way • Palm Springs, California 92262 Tet (760) 323-8229 • Fax: (760) 322-8320 • Web: www.palmspringsca.gov Honorable Mayor, Members of the City Council, and Residents of the City of Palm Springs, California
The City Charter and State of California mandate that the City of Palm Springs (the "City") issue a complete set of financial statements annually and that an independent firm of certified public accountants audit this report in conformance with generally accepted auditing standards (GAAS).

The Annual Comprehensive Financial Report (ACFR) of the City of Palm Springs for the year ended June 30, 2024, is hereby submitted.

The ACFR was prepared in conformance with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASS). This report consists of City management's representations concerning the finances of the City of Palm Springs. Responsibility for the accuracy and completeness of the data presented rests with the City. Management of the City is also responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. We believe the information presented in this report is complete and accurate in all material respects, and that it is reported in a manner designed to fairly present the financial position and results of operations of the various activities of the City of Palm Springs.

The City of Palm Springs financial statements have been audited by The Pun Group, LLP, a firm of licensed certified public accountants. The goal of the audit was to provide reasonable assurance that the financial statements of the City of Palm Springs for the fiscal year (FY) ended June 30, 2024 are free of material misstatement. The independent.audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based on the audit, that there was a reasonable basis for rendering an unmodified, or clean, opinion that the City of Palm Springs financial statements for the year ended June 30, 2024, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report.

The City is required to undergo an annual single audit in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Unifonn Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditor's reports on the internal control structure and compliance with applicable laws and regulations are included in a separate report.

Item 3A - Page 12
A narrative introduction, overview, and analysis accompany the basic financial statements in the form of the Management's Discussion and Analysis (MD&A). The letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Palm Springs MD&A can be found immediately following the report of the independent auditors and will provide further information regarding the format and content of this report.

Profile of the City
The City of Palm Springs is an inclusive world-class destination that welcomes everyone. The City of Palm Springs, incorporated in 1938, covers a geographical area of 96 square miles, and is located on the western edge of the Coachella Valley at the center of the County of Riverside. The City is approximately 110 miles east of Los Angeles and 140 miles northeast of San Diego. The City is within the ecological area known as the Colorado Desert, 487 feet above sea level, and surrounded by the San Bernardino Mountains to the north, the Santa Rosa Mountains to the south and the San Jacinto Mountains to the west. The geography of Palm Springs creates a warm and dry climate.

The City has a permanent year-round population of 43,791 according to the last census in 2023.

The population substantially increases from November to May with part-time residents and visitors.

The City has been governed as a charter city since 1994 and operates under a Council-Manager form of government. Council Members are elected by district and serve four-year staggered terms.

The mayor is appointed by the City Council to serve a one-year term on a rotating basis pursuant to an appointment policy adopted by the Council. The Council Members are responsible for policymaking, local ordinances, adopting the City's annual budget, appointing committees, appointing the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, overseeing the operations of the City, and appointing heads of departments.

The City of Palm Springs is a full service city providing residents and visitors with the following functional services: general governance, legal, financial, information technology and administrative management; police, fire, emergency transport services; engineering, construction, and maintenance of public facilities, highways and streets, sanitation, culture and recreation, aviation, public improvements, planning and zoning, community development, animal shelter, sustainability and recycling, and libraries. In addition to general government activities, the City serves as the Successor Agency for the former Community Redevelopment Agency of the City of Palm Springs and is financially accountable for the Palm Springs Financing Authority; therefore, these activities are included in the reporting entity. Public elementary and secondary education is provided by the Palm Springs Unified School District.

Local Economy
The City of Palm Springs is located within the Inland Empire economic region and is included in the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA). The MSA is home to 12% of California's residential population. The Inland Empire is the 13th largest MSA in U.S. by population (4.7 million people) and 3rd largest in California. Riverside County boasts a total of 834,909 employed with the highest sectors of employment in Education/Health, Government, Retail/Trade and Leisure/Hospitality. The average annual wage in Riverside County is $69,397. Palm Springs hosts 28,473 of those jobs, or about 3.5% of the County employment figures. This is a 1.4% increase over the previous year.
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With over $3 billion in investment dollars focused on exciting commercial development in the future, and innovative municipal improvements, Palm Springs is reimagining its future while honoring the past in a blossoming renaissance of commercial and economic development. A vibrant downtown with new hotels, restaurants, and upscale retail is unfolding. Future high-profile projects include $2.2 billion for Palm Springs International Airport, the new $405 million College of the Desert Palm Springs Campus, and a multi-year $45 million renovation of the Palm Springs Library. In 2024, Palm Springs issued $9.2 million in non-residential permits indicating continued commercial investment and development within the city. A key part of the renaissance is the City's commitment to providing a unique blend of art, culture, and landmark special events that have become important economic boosters and attract hundreds of thousands of residents and visitors to the destination every year.

Modernism Week defines Palm Springs as the mid-century modern architecture capital of the world.

The Palm Springs International Film Festival and its red-carpet Awards Gala is now a star-studded event featuring the world's most acclaimed actors, actresses, and film industry leaders. The much loved Greater Palm Springs Pride Parade and Festival has become one of the city's signature events celebrating a diverse LGBTQ+ community. In addition, iconic tourist attractions like the Palm Springs Art Museum, the Aerial Tramway, the magnificent new Agua Caliente Cultural Plaza featuring a tribal museum and state-of-the-art spa, and the wildly popular 26-foot-tall Forever Marilyn sculpture are beloved by residents and visitors alike.

Palm Springs is adding more affordable housing for those who want to live and work in the city. Aloe Palm Canyon's new 71-unit affordable housing for seniors will be completed in Spring 2025. A total of 25 units will be Permanent Supportive Housing (PSH) to assist residents with accessing health services, systems navigation, financial management, and life skills. Vista Sunrise II recently opened with 61 apartments and provides affordable permanent supportive housing as part of the expanded DAP Health campus in Palm Springs. Monarch Family Apartments, a 60-unit affordable housing community featuring a children's play area and community room, also opened within the last year.

And finally, Measure J was approved as a permanent sales tax measure by Palm Springs voters ensuring significant revenue to maintain local community services while helping to economically revitalize the City's downtown core.

Top Three Revenue Sources
The City of Palm Springs has experienced significant growth for the past few years in the top three revenue categories: sales taxes, transient occupancy taxes, and property taxes. Revenues have since stabilized and are leveling off to a new normal in the Fiscal Year 2023-2024. Below is a brief analysis of these top revenue lines.

Sales taxes are comprised of the traditional Bradley-Burnes Sales tax (7.25%), Measure J (1%) and Measure D (1/2 %) for a combined total of $51.4 million in FY2024 vs. $55.1 million in FY2023. Sales taxes are the City's largest source of revenue. These sales taxes are not restricted and can be used for general purposes. Historically, the City has used the Measure J sales tax to support major capital projects. The City expects these revenues to flatten out in the next fiscal year and expects normal growth thereafter.

Transient Occupancy Tax (TOD, or 'hotel, motel, and vacation rental tax,' is the City's second largest source of revenue. TOT revenue has benefited from increased marketing efforts both nationally and internationally, as well as increased airline routes and seat capacity made through various Airline Incentive Programs, the recent remodeling of several hotels accomplished in conjunction with the City's Hotel Incentive Program, and continuing TOT audits of hotels, motels, and vacation rental properties. TOT revenue for FY2024 was $51 million and for FY2023 was $53.5 million. The City expects TOT revenue to continue to level off, settling to a more normal amount in the next fiscal year.
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Item 3A - Page 14
Property taxes are the City's third largest source of revenue. Property taxes, including the Motor Vehicle in-lieu property tax, continues to show solid growth with an increase in FY2024 over FY2023 of 11 %. Property Tax for FY2024 was $39.1 million versus $34.7 million in FY2023. The City expects Property taxes to remain strong with better than average growth in the next fiscal year.

Major Initiatives for the Year
The City of Palm Springs h.;is prioritized investments and expenditures to improve the experiences of residents and visitors. A selection of major initiatives and improvements are detailed below:

Capital Projects and Infrastructure
• Plaza Theatre renovation
• Renovation of the Palm Springs Public Library
• Continued investment in City streets using $6 million of Measure J funds • Installation of playground equipment and shade structures at Ruth Hardy Park • Indian Canyon Bridge widening
• South Palm Canyon Bridge replacement at the Tahquitz Creek Channel • Land acquisition and design of a new Fire Station #1
Palm Springs International Airport
The Palm Springs International Airport (PSP) is owned and operated by the City of Palm Springs and is the only commercial services airport in the Coachella Valley. PSP served 3,260,435 total passengers in the fiscal year ending June 30, 2024. This was an increase of over 16,424 total passengers and a 1 % increase over the prior fiscal year. Air travel has been a major component of the Coachella Valley with an average of 44 daily departures from 12 major airlines providing nonstop service to 30 airports in season with one-stop connections to more than 300 global cities. US nonstop routes include Atlanta, Bellingham, Bend/Redmond, Boise, Chicago Midway, Chicago O'Hare, Dallas Love, Dallas/Fort Worth, Denver, Dulles Washington, Everett, Houston, Las Vegas, Los Angeles, Minneapolis, New York JFK, Oakland, Phoenix, Portland, Sacramento, Salt Lake City, San Francisco, San Jose, Santa Rosa, and Seattle. Canadian nonstop routes include Calgary, Edmonton, Toronto, Vancouver, and Winnipeg. PSP is served by Air Canada, Alaska, Allegiant, Avelo, American, Delta, Flair, JetBlue, Southwest, Sun Country, United, and WestJet. · Major Initiatives for PSP
• Expansion of the terminal concessions program with four new restaurants to include Nine Cities, Cactus to Clouds, Las Casuelas, Coachella Valley Coffee and five retail stores to include I • PSP vending, Hey Joshua, lnMotion, Uptown Essentials and Las Palmas Oasis • Installation of new WiFi infrastructure throughout the terminal and courtyard • Implementation of enhanced security measures including Aviation Worker Screening and Identity Management System
• Addition of a seventh Transportation Security Administration screening lane for efficient passenger screening
• Rehabilitation of main commercial aircraft taxiways
• Procurement of ADA passenger boarding ramps and mobile restroom facilities • Purchase of 3 electric transit buses
• Installation of electric vehicle charging stations
• Completion of comprehensive airport signage and wayfinding improvements iv
Item 3A - Page 15
Long Term Financial Planning
PSP maintains a robust long-term financial planning framework aligned with City policies while adapting to aviation industry requirements and federal regulations. The airport's financial strategy focuses on diversifying revenue streams through aeronautical and non-aeronautical sources, maintaining appropriate reserves, and implementing strategic capital improvements identified in the master plan. PSP coordinates closely with City Finance to ensure proper pension liability management, staffing cost projections, and participation in liability reduction strategies. The airport conducts regular financial monitoring and provides quarterly progress reports on financial goals while maintaining flexibility to respond to industry changes and economic conditions. This comprehensive approach enables PSP to sustain its operations, fund future growth, and maintain its role as an economic engine for the Greater Palm Springs region while upholding strong financial stewardship.

The airport maintains strong financial performance with $47 million in operating revenue and $37 million in operating expenses for fiscal year 2024, resulting in a $10 million surplus. The cost per enplanement remained competitive at $6.96. The airport secured over $14.1 million in federal funding for infrastructure development and operational enhancements. A new air service incentive plan has helped secure additional routes and carriers, supporting continued growth.

For the Future
PSP is actively investing in comprehensive infrastructure and service improvements to enhance the travel experience and ensure sustainable operations for years to come. Through its extensive modernization program, PSP is expanding electric vehicle charging infrastructure, implementing design standards, and enhancing terminal amenities to create a more comfortable and efficient environment for passengers. The airport is strengthening its operational foundation through the development of a Safety Management System program and modernization of critical technology infrastructure. Terminal concessions expansion continues to provide travelers with improved dining and retail options, while sustainability initiatives, particularly electrification projects, demonstrate PSP's commitment to environmental stewardship. These strategic investments position PSP to meet growing passenger demand while maintaining its reputation as an iconic gateway to Greater Palm Springs.

Long Term Financial Planning
Palm Springs continues to be a stable and financially secure municipality due to its strong underlying tax base, disciplined fiscal decisions, and governance. Long term financial planning is guided by strong financial policies, prudent budgeting decisions, and proactive planning in such critical areas as facilities replacement and pensions.

The City and the six employee bargaining units are currently under contract, with four of the six under contract through June 30, 2026, and the other two under contract through June 30, 2025. The contracts allow for prospective analysis and projections of anticipated staffing costs and needs to support the services provided to the residents and visitors of Palm Springs.

The City Council has approved a plan to use the CalPERS set aside funds for actual paydown of the City's unfunded accrued pension liability. The set aside funds are expected to be $52 million at the end of FY2025. The City will immediately pay down $29 million of the liability by sending a lump sum payment to CalPERS. The remaining $23 million will be placed in an irrevocable Section 115 Trust to be used to paydown future pension liabilities.

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Item 3A - Page 16
The City Council electl;ld to put Measure J on the November 2024 ballot asking the voters to remove the sunset provision. The provision would have ended the 1 % sales tax on March 31, 2037. The voters overwhelmingly approved the ballot initiative with over 70% of Palm Springs residents favoring the extension of the tax.

The City will begin the biannual budget process for FY2026 and FY2027 in early spring of 2025.

Financial and Budgetary Controls
In addition, the City maintains financial and budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City's governing body. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is at the fund level. The City maintains an encumbrance accounting system as one technique of accomplishing budgetary control.

Purchase orders that would result in an overrun of a department line-item account may not be processed until either a budget transfer from another account is processed, or after a budget amendment is processed which requires City Council approval. Encumbered amounts and unspent budgeted appropriations are reviewed and carried over at year end at the discretion of the City Manager. Additional year-end transfers between funds may be processed as needed at the City Manager's discretion.

As part of the passage of the Measure J increase of 1 % to the sales and use tax, the City formed a nine-member citizens' oversight commission to review all projected revenues and recommended expenditures, recommend expenditures to the City Council for approval, oversee and monitor Measure J expenditures, and review the independent audit of revenues and expenditures from Measure J.

As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management.

For the Future
The City continues to look for ways to grow the Palm Springs economy by promoting the City throughout United States and Internationally to continue the growth of the City's strong tourism industry. Doing so also helps to support small businesses which are a cornerstone of Palm Springs being such a unique destination. Palm Springs continues to see significant infrastructure investments and growth in the community. Some of the notable projects are noted below:
• Thompson Hotel, a 168-room upscale hotel in downtown Palm Springs, opened in October 2024.
• Housing expansion with the Miralon development in northern Palm Springs. When completed, will develop over 1, 150 housing units including condominiums and single-family homes.
• Expansion of the Palm Springs International Airport. Doubling the gates from 18 to 36 within 20 years as well as adding an onsite rental car garage. Renovation of the food and beverage offerings and providing on site customs. The Airport saw a record number of passengers in FY2024 with more than 3.2 million served.
• Completed construction of the Homeless Navigation center with 80 units of transitional housing.
• Construction of the new $405 million College of the Desert campus being built on 29 acres of land currently unoccupied in the center of Palm Springs. • Construction of the new Dream Hotel providing 155 hotel rooms and 89 condominiums scheduled to open in 2027.
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Item 3A - Page 17
Awards and Acknowledgments
The City has prepared an annual comprehensive financial report for the past 35 years. The City has received awards for excellence in financial reporting for each of those years.

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 Springs for its annual comprehensive financial report for the fiscal year ended June 30, 2023. To be awarded a Certificate of Achievement, a government unit 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 our current annual comprehensive financial report continues to conform to the Certificate of Achievement program requirements and we are submitting it to GFOA to determine its eligibility for another certificate.

Preparation of this report was accomplished through the efficient and dedicated services of everyone in the City's Finance Department. In addition, members of the Finance Department would like to thank the City Manager and the City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. We would also like to thank our auditors, The Pun Group, LLP, for their time, technical expertise and guidance.

Respectfully submitted,
Kristopher J. Mooney
Director of Finance and Treasurer
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Item 3A - Page 18
City Manager
Assistant City Manager

CITY OF PALM SPRINGS
List of Principal Officials
June 30, 2024

CITY COUNCIL
Jeffrey Bernstein, Mayor
Ron deHarte, Mayor Pro Tern
Grace Elena Garner
Christy Holstege
Lisa Middleton

EXECUTIVE MANAGEMENT
Deputy City Manager - Development Services
Deputy City Manager - Administration
City Clerk
Director of Community/Economic Development
Director of Finance and Treasurer
Director of Human Resources
Director of Library Services
Director of Maintenance and Facilities
Director of Recreation
Executive Director of Aviation
Fire Chief
Police Chief
viii
Scott Stiles
Teresa Gallavan
Flinn Fagg
Jeremy Hammond
Brenda Pree
Whitlan Jay Virata
Kristopher J. Mooney
Stephanie George
Regina Kays
David McAbee
Lauri Aylaian, Interim
Harry Barrett
Paul Alvarado
Andrew Mills
Item 3A - Page 19
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City of Palm Springs
Organizational Chart
I
Assistant City Manager
Teresa Gallavan
Facilities & Maintenance
David McAbee
Library
Jeannie Kays
Communications &
Neighborhoods
Amy Blaisdell
Parks & Recreatlonn
Yvonne Wise
Special Program
Compliance
Veronica Goedhart
City Attorney
Jeffrey Ballinger
I
Deputy City Manager
Flinn Fagg
Building & Safety
Dana MacAllister
Housing and Community
Development
Jay Virata
Engineering Service s
Joel Montalvo
Planning Services
Christopher Hadwin
Sustainability & Recycling
Lindsey Paige-McCloy
City Council
I
City Manager
Scott Stiles
I
Special Assistant
to the City Manag er
Cynthia Cairns
I
Deputy City Manager
Jeremy Hammond
City Clerk
Brenda Pree
Information Technology
Larry Klingaman
Procurement
Kim Baker
Airport
Harry Barrett
Economic Development
Wayne Olson
Finance & Treasury
Kristopher Mooney
Fire
Paul Alvarado
Human Resouces
Stephanie George
Police
Andrew Mills
Item 3A - Page 20
Government Finance Officers Association
Certificate of
Achievement
for Excellence
. in Financial
Reporting
Presented to
City of Palm Springs
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
X
Item 3A - Page 21
Item 3A - Page 22
Tltis page intentionally left blank.

X
Item 3A - Page 23

INDEPENDENT AUDIT ORS' REPO RT
To the Honorable Mayor and the Membe rs of the C ity Counc il of the City of Palm Springs
Palm Springs, Cal ifornia
Report on the A udit of the Financial State ments
Opinions
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
www.pungro up.cpa (g
We have audited the financia l statements of the gove rnmental activ ities, the bus iness-type activities, eac h majo r fund, and the aggregate remaining fund information of City of Palm Springs, California (the "City"), as of and for the year ended June 3 0, 2024, and the related notes to t he basic financial statement s, which collectivel y compri se the C ity' s basic financial stateme nts as listed in the table of contents.

In our opinion, the acco mpany ing financ ial statements referred to above present fairly, in a ll material respects , the respective financial p osition of t he gove rnmental a ctivities, the business-type act ivities, each majo r fund, and the aggrega te remaining fund inform ation of the C ity, as of June 30, 2024, and the respective changes in financial position , a nd, where applica ble, cash flows thereof for the year then ended in accordance with account ing principles generally acce pted in the United States of America .

Basis for Opinions
We conducted our audit in accordance with auditing sta ndards gene rally accepted in the United States of America ("GAAS") and the stan dards applicable to financial audi ts contained in Government Auditing Standards issued by the Comptro ller General o f the United States ("Government Auditing Standards"). Our responsibilities under those standards are further described in the Aud itors' Responsibilities for the Audit of the Financial State ments section of our report. We are required to be i ndepende nt of the C ity and to meet our other ethical responsibilit ies, in accordance with the relevant ethica l requi rements relat ing to our audit. We believe that t he audit evi dence we have obtained i s suffic ient and appropria te to provide a basis for our audit opinions.

Responsibilities of Manag ement for the Financial Statements Manage ment is respo nsible for the preparat ion and fair presenta tion of the financia l statements in accordance with acco unting principles genera lly acce pted in the United States of Amer ica, and for the design, implementat ion, and mainte nance of internal control relevant to the preparation and fair prese ntation of financ ial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, manage ment is required to evaluate whet her there are conditions or eve nts, considered in the aggregate, that raise substantia l doubt about the C ity's abil ity to continue as a going concern for twe lve months beyo nd the finan cial statement date, including any currently known informat ion that may raise substa ntial doubt shortly thereafter.

ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX ooe Item 3A - Page 24
To the Honorable Mayor and the Members of the City Council of the City of Palm Springs
Palm Springs, California

Page 2 ends

Auditors' 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 auditors' report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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 GAAS 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, the Budgetary Comparison Schedule, the Schedule of Changes in Net Pension Liability and Related Ratios, the Schedules of Contributions - Pensions, and the; Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios 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 GAAS, 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 Item 3A - Page 25
To the Honorable Mayor and the Members of the City Council of the City of Palm Springs
Palm Springs, California

Page 3 ends

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The Combining and Individual Fund Financial Statements 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 GAAS. In our opinion, the Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditors' 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 December 31, 2024 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.

Santa Ana, California
December 31, 2024
3 Item 3A - Page 26
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4 Item 3A - Page 27

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
As management of the City of Palm Springs (the "City"), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2024. Our intent is to assist the reader of these financial statements in understanding the impact of financial decisions made by the City. This analysis will focus on the significant changes from the prior year to explain the City's overall fmancial condition. Please read this analysis in conjunction with the accompanying financial statements.

Using the Accompanying Financial Statements
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City's finances. Also included in the accompanying report are fund financial statements. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending.

Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.

OVERVIEW OF THE FINANCIAL STATEMENTS
The annual report consists of four parts - management's discussion and analysis (this section), the basic financial statements, required supplementary information, and an optional section that presents combining statements for non major governmental funds and internal service funds. The basic financial statements include two kinds of statements that present different views of the City:
• The first two statements are government-wide financial statements that provide both long-term and short-term information about the City's overall financial status.
• The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City's operations in more detail than the government-wide statements. • Governmental fund statements provide information on how the general government uses services and how those services were financed in the short term, as well as what remains for future spending. • Proprietary fund statements offer short and long-term financial information about the activities the government operates, including the airport, wastewater and golf course. • Fiduciary fund statements provide information about fiduciary relationships, such as custodial funds, in which the City acts solely as agent or trustee for the benefit of others, to whom the resources in question belong.

The basic financial statements also include a notes section that provides more detailed information. The statements are followed by a section of required supplementary information that provides additional financial and budgetary information.

Figure A-1 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis explains the structure and contents of each of the statements. 5 Item 3A - Page 28
Scope
Required
financial
statements
Accounting
basis and
measurement
focus
Type of asset/
liability
information
Type of inflow/
outflow
information
Figure A-1
Major Features of the City's Government-wide and Fund Financial Statements Government-wide Statements
Entire City government
(except fiduciary funds) and
the City's component units
Fund Statements
Governmental Funds Proprietary Funds
The activities of the City Activities the City
that are not proprietary or orerates similar to
fiduciary private businesses
•
•
Statement of net position • Balance sheet • Statement of net position
Statement of
revenues,
expenses and
changes in net
position
Statement of
cash flows
Statement of activities • Reconciliation to the
balance sheet to the •
statement of net
position
• Statement of
revenues,
expenditures and •
changes in fund
balances
• Reconciliation of the
statement of
revenues,
expenditures and
changes to fund
balances to the
statement of
activities
Accrual accounting and Modified accrual Accrual accounting economic resources focus accounting and current and economic financial resources focus resources focus
All assets, liabilities, and Only assets expected to All assets and deferred inflows/outflows of be used up and liabilities liabilities, both resources, both financial and that come due during the financial and capital, capital, and short-term and long- year or soon thereafter; and short-tenn and term no capital assets or long- long-tenn
term debt included
All revenues and expenses Revenues for which cash All revenues and during year, regardless of when is received during or soon expenses during the cash is received or paid after the end of the year; year, regardless of expenditures when goods when cash is received
or services have been or paid
received and payment is
due during the year or
soon thereafter
6 Fiduciary Funds
Instances in which
the City is the
trustee or agent for
someone else's
resources
• Statement of
fiduciary net
position
• Statement of
changes in
fiduciary net
position
Accrual accounting
no measurement
focus
All assets and
liabilities, both
short.term and
long-term; the
City's fiduciary
funds do not
currently contain
capital assets,
although they can.

All revenues and
expenses during
year, regardless of
when cash is
received or paid.

Item 3A - Page 29
Reporting the City as a Whole
The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. 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 helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is like the accounting used by most private sector companies. All the current year's revenues and expenses are considered regardless of when cash is received or paid.

These two statements report on the City's net position and changes in them. The net position - the difference between assets and liabilities-is one way to measure the City's financial health. Over time, increases and decreases in the City's net position are one indicator of whether its financial health is improving or deteriorating. Other non-financial factors, however, such as changes in the City's property tax base and the condition of the City's roads and facilities to assess the overall health of the City.

In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities:
• Govermnental activities- Most of the City's basic services are reported here. Sales taxes, transient occupancy taxes, property taxes, state subventions, and other revenues finance most of these activities. • Business-type activities - The City charges user fees to customers to offset all or most of the expenses accounted for in these funds.

Reporting the City's Major Funds
The fund financial statements provide detailed information about the City's most significant funds - not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, City Council establishes many other funds to help it control and manage money for purposes or to show that it is meeting administrative responsibilities for using certain taxes, grants, or other money. The City's two kinds of funds - govermnental and proprietary - use different accounting approaches.
• Governmental fonds -Most of the City's basic services are reported in governmental funds, which focus on how money flows into 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 current financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general govermnent operations and the basic services it provides.

Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent soon to finance the City's programs. We describe the relationship or differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in the reconciliation at the bottom of the fund financial statements. • Proprietary funds - When the City charges customers for the services it provides - whether to outside customers or to other units of the City - 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. In fact, the City's enterprise funds (a component of proprietary funds) are the same as the business-type activities reported in the government-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds. Internal service funds (the other component of proprietary funds) are used to report activities that provide supplies and services for the City's other programs and activities.

Reporting the City's Fiduciary Responsibilities
The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All the City's fiduciary activities are reported in a separate Statement of Fiduciary Net Position. 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. 7 Item 3A - Page 30

GOVERNMENT-WIDE FINANCIAL STATEMENTS
A summary of the government-wide statement of net position follows:

Table I
Net Position (in thousands)
Governmental Activities Business-type Activities Total
2024 2023 2024 2023 2024 2023
Current and other assets $ 435,391 $ 397,391 $ 181,501 $ 167,468 $ 616,892 $ 564,859 Capital assets 437,052 370,607 176,178 160,049 613,230 530,656 Total assets 872,443 767,998 357,679 327,517 1,230,122 1,095,515 Deferred Outflows 62,169 65,761 7,078 8,120 69,247 73,881 Long-term debt
outstanding 457,812 460,060 68,390 72,269 526,202 532,329 Other liabilities 70,877 47,387 15,575 13,729 86,452 61,116 Total liabilities 528,689 507,447 83,965 85,998 612,654 593,445 Deferred Inflows 65,414 74,584 2,407 3,445 67,881 78,029 Net position:

Net investment in
cap ital assets 286,184 213,373 144,351 120,120 430,535 333,493 Restricted 63,011 55,086 3,055 4,935 66,066 60,021
Unrestricted (8,746) (16,731) 130,979 121,139 122,233 104,408 Total net position $ 340,449 $ 251,728 $ 278,385 $ 246,194 $ 618,834 $ 497,922 As noted earlier, net position may serve over time as a useful indicator of a government's financial position. For the fiscal year ending June 30, 2024, assets plus deferred outflows exceeded liabilities and deferred inflow by approximately $619 million ofnet position.

The largest portion of the City's net position of$619 million is reflected in investments in capital assets (e.g. land, street infrastructure, buildings, equipment, and vehicles); less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted the resources to repay this debt will be provided from future revenues, and the remaining of the City's net position, since the capital assets cannot be used to liquidate the related liabilities.

A portion of the City's net position of$66 million represents resources that are subject to external restrictions on how resources may be used. The remaining unrestricted balance of net position is $122 million.

At the end of the current fiscal year, the City reported positive balances in all three categories of net position for the City as a whole, as well as the governmental activities. For the City's business-type activities, the balance was also positive.

In 2024, the City maintained a strong growing tourism industry leading to $121 million increase in net position with $89 million coming from governmental activities and $32 million in business-type activities. The steady growth also led to an increase in passenger traffic at the City's airport, a total of3.2 million passengers which is 16,400 more than 2023.
8 Item 3A - Page 31
A summary of the government wide statement of activities follows:

Rennues
Program revenues:

Charges for services $
Operating contributions & grants
Cap ital contributions & ~ts
General revenues:

Property taxes & tax increment
Transient occupancy taxes
Sales taxes
Other taxes
Motor vehicle in lieu - unrestricted
Loss on sale of capital asset
Other general revenues
Total revenues
Program expenses
General IJ)Vernment
Public safety
Culture and convention center
Parks and recreation
Public Works
Library
Interest
Airport
Wastewater
Golf Course
Total expenses
Excess (deficiency) before transfers
Transfers
Increase (decrease) in net position
Beginning net position
Endingnet position $
Table 2
Changes in Net Position (in thousands)
Governmental Activities
2024 2023
25,571 $
11,071
48,712
39,075
51,057
51,396
24,824
7,382
298
11,996
271,382
37,082
82,951
12,528
14,967
26,589
3,388
4,177
181,682
89,700
(979)
88,721
251,728
340,449
$
25,806 $
9,852
23,853
34,673
53,550
55,113
27,385
6,740
(43)
5,009
241,938
38,038
70,599
12,025
11,898
18,619
3,005
3,939
158,123
83,815
(400)
83,415
168,313
251,728
$
Business-type Activities
2024 2023
77,040 $
3,588
6,425
87,053
41,035
8,965
5,841
55,841
31,212
979
32,191
246,194
278,385 $
69,660 $
23,312
1,639
94,611
30,858
8,927
5,536
45,321
49,290
400
49,690
196,504
246,194 $
The City's total revenues were $358 million while the total expenditure was $237 million.

Total
2024
102,61 I $
14,659
48,712
39,075
51,057
51,396
24,824
7,382
298
18,421
358,435
37,082
82,951
12,528
14,967
26,589
3,388
4,177
41,035
8,965
5,841
237,523
120,912
120,912
2023
95,466
33,164
23,853
34,673
53,550
55,113
27,385
6,740
(43)
6,648
336,549
38,038
70,599
12,025
11,898
18,619
3,005
3,939
30,858
8,927
5,536
203,444
133,IOS
133,IOS
497,922 364,817
618,834
.. s,__4;;;;9~7.:,9:::22:..

With the significant growth in the City's tourism industry, the increased pedestrian traffic drove increases in the City's three largest sources of tax revenue. Sales taxes were the City's largest revenue source at $51.4 million (14% of total revenues and 19% of governmental revenues). The City's Transient occupancy taxes (TOT), or hotel and vacation rental tax, the City's second largest revenue source at $51 million (14% of total revenues and 19% of governmental revenues).

Property taxes were the City's third largest revenue source at $39 million (11% of total revenues and 14% of governmental revenues). Property taxes have steadily grown over the past few years largely due to the continued growth of assessed valuations in the Palm Springs area. Palm Springs experiences one of the highest rates of growth of the sales price of homes in the Coachella Valley.
9 Item 3A - Page 32
Governm ental Activities. The gove rnmental activities net pos ition of $89 mi Ilion acco unted for 73% of the tota l grow th in net posi tion for the City this past year.

The fol lowing grap h depict s the major revenue sources of the City's governmental activities. The graph dep icts the reliance on taxes to fund gove rnm enta l activit ies.

Revenue s by Source - Governmental Activities
Capital Contributions &
Grants 18'!-o
Transient Occupancy
Taxes
Other Taxes
9'!-o
Motor ,·ehicle in lieu
unrestricted
3%
Operating
Contributions &
Grants
4q,&
Charges for Sen-ices
9%
1%
Prope1ty Taxes
14%
19%
Sales Taxes
19%
General Government expe nses (includ ing C ity Cou ncil, City Manager , City Attorne y, City Clerk, Informat ion Technology, Publi c Affai rs, Procurement , Comm unity Deve lopment , Hum an Resources, Home less ness Program , Ne ighborho od Involvement, Finance and Adm inistration) was the seco nd largest governmen tal activ ity represen ting 20% of the total cost of govern men tal activit ies.

Publi c Safety expen ses are compri sed of Poli ce and Fire and are the largest componen t of governmen tal activities, approxima tely 46% of the tota l cost of govern mental activities this past yea r.

Culture and Conven tion Center expen ses were 7% of the total cost of gove rnmental act ivities.

Parks and Recreation expenses were 8% of the tota l cost of governmen tal activities.

Pub lic Work s expenses are comprised of Plann ing, Buildin g and Safety , Engineering, Street Maintenance, and Downtown Mainte nance was the third largest component of gove rnmenta l activit ies repre senting 14% of the tota l cost of gove rnm ental activ ities this past year.
10 Item 3A - Page 33
Library expenses were 2% of the total cost of gove rnmental activities.

Interest expenses were 2% of the total cost of gove rnmental act ivities.

Most areas of the City's categor ies of expense expe rienced growth largely due to increased personne l costs. The City took a conservative approac h in respondin g to the COVID- 19 pande mic by terminating some positions during 2020- 202 1. The City soug ht to re-hire in those areas as the impact of COVID- 19 was not as detrimental as experienced.

Expenses by Function - Governmental Activities
Culrure &
Convention Cenrer
Parks & Recreation
S%
Library
2•,.

General Govemmen
20%
14%
Interest
2~0
Public Safety
46%
Business- Type Activities. Business-type activities net pos ition increase d by $32 milli on, or 13%, over prior year, this equates to 27% of the City's total growt h. The C ity's busine ss-ty pe activities include the Airport , Wastewate r, and the Golf Course , including costs incurred for capitalized assets that were funded by charge s for serv ices and operating grants.

FINANCIAL ANALYSI S OF THE GOVERNM ENT'S FUNDS
As noted earlier, the City uses fund accounting to provide proper financial management of the City 's resources and to demonstrate comp liance with finance-r elated legal requir ements.

Governmental Funds. The focus of the City 's governmental funds is to provide information on near-term inflows, outflows, and balance s of spendable resources. Such information is useful in assess ing the City's financing requirements and may serve as a usefu l measure of a government 's net resour ces available for spending at the end of the fiscal year.

As of June 30, 2024, the gove rnmen tal funds reported combined ending fund balances of$285.6 million, an increase of $14.3 million in compari son with the prior year mai nly due to continued growth in the City's property tax revenue and increased grant revenue. The City has $1.7 million (< 1%) in fund balance class ified as nonspendab le to indicate it cannot be readi ly conve rted to cash; $63 million (22%) in restricted fund balance to indicate that it h as an exte rna lly imposed restriction on how the funds may be spent; $3 million ( 1 %) in committed fund balance to indicate that the City Cou ncil has committed the money for affordab le housing; $121.2 million (42%) in ass igned fund balance to indicate that the City Council has assigned purpose or intent for how the money shou ld b e s pent; and $96 million (34%) is unass igned fund balance to indicate that it is the residual balanc e not otherwise restricted.

II
Item 3A - Page 34
The fund balance of the City's General Fund decreased by $5.6 million during the fiscal year ended June 30, 2024. In addition, reasons for the changes in the revenue and expenditures of the City's General Fund from the prior year include:

Total General Fund revenue increased to $194.8 million from $192.2 million (prior year), an overall increase of $2.6 million, an increase of 1.3%. Significant fluctuations over prior year include the following:
• Sales Taxes decreased to $51.4 million from $55.1 million, an overall decrease of$3.7 million. • Property taxes increased to $39 million from $34.6 million, an overall increase of$4.4 million. • Transient Occupancy Taxes decreased to $51 million from $53.5 million, an overall decrease of$2.5 million. • Utility User Taxes decreased to $13.6 million from $14.9 million, an overall decrease of $1.3 million.

Total General Fund expenditures before transfers in/out, increased to $181 million from $155 million (prior year), a total increase of$26 million. This is reflective of salary and benefit increases due to an increase in positions as the City continues to re-hire after COVID-19, merit increases, Plaza Theatre renovation expenditures, and Navigation Center expenditures.

The City's other Major Governmental Funds include the Measure J Capital Projects Fund and Capital Projects Fund.

The Measure J Capital Projects Fund is the collection of revenue and expenditures as they relate to the one percent sales tax for the dedicated use to maintain local community services and revitalize Downtown Palm Springs. The Measure J fund revenue increased by approximately $720 thousand to $23 million, and the fund balance increased by $4.4 million to $43.5 million. Increase in fund balance is mainly due to interest income and transfer out of Plaza Theatre renovation project expenses to Capital Projects Fund.

The Capital Projects Fund had an ending fund balance of $25.2 million, an increase of $8.3 million from prior year.

Increase in fund balance is mainly due to grant revenues recognized for Navigation Center, interest income, and transfer in of Plaza Theatre renovation project from the Measure J Capital Projects Fund.

The General Debt Service Fund had an ending fund balance of$5.8 million. The City had no debt issuances or.refunding in Fiscal Year 2023-24. The City reclassified General Debt Service Fund to Nonmajor Governmental Funds in Fiscal Year 2023-2024.

Enterprise F1111ds. The City's Proprietary funds presented in the Financial Statements section provides the same type of information in the Government-wide Financial Statements but in more detail.

The combined unrestricted net position of the Airport Fund, Wastewater Fund, and the Golf Course Fund at the end of the fiscal year amounted to $130.9 million largely due to the Airport growing their unrestricted fund balance by $17.2 million to $88.3 million at the end of Fiscal Year 2023-24. Other factors concerning the finances of these funds have been addressed in the discussion of the City's business-type activities.

GENERAL FUND BUDGET
There were a few budget adjustments during the year. The City remained committed to spending cautiously while prioritizing projects that support economic vitality and recovery.

The difference between the original and final amended budget significant variances are briefly summarized as follows:
• Revenues original budget of $197.5 million and final budget of $202.5 million, an increase of $5 million.

Increases largely due to transfers from internal service funds to general fund to be more in line with actual spending.
• Expenditures original budget of $198.7 million increased to $206.8 million, an increase of $8.1 million. The increase was largely due to Public Safety expenses, Navigation Center expenses and vacancy savings. 12 Item 3A - Page 35
Major variances between the final budget of the General Fund and its actual operating results were as follows:
• Total revenues were $194.8 million, a decrease of $7.7 million above final budgeted revenues for the year ended June 30, 2024. Most of that decrease came from decreased actual utility user tax revenue and timing of recognition of grant revenue.
• Total expenditure was $181.4 million, a decrease of $25.4 million from final budgeted expenses. This was largely due to a grant expense being under budget due to timing of completion for grant funded projects, savings in Salary and Benefits due to many departmental headcount vacancies, and unspent dollars the City Council had set aside for specific priorities.

Assets
Building;
Improvements
Furniture and equipment
Vehicles
Infrastructure
Leased Assets
Subscription Assets
Leased Land
Land
Construction in progress
Rig)lt-of-way
Total Capital Assets
Accumulated Depreciation
and Amortization
Building;
Improvements
Furniture and equipment
Vehicles
Infrastructure
Leased Assets
Subscription Assets
Total Accumulated Depreciation
and Amortization
Total Capital Assets, Net
$
$

CAPITAL ASSETS
Capital Assets
(in thousands, net of depreciation)
Governmental Activities
2023
2024 (As restated)
97,530 $
104,543
36,381
22,619
282,310
47,226
3,607
2,907
69,122
103,398
16,868
786,511
58,137
73,097
17,036
14,770
180,524
4,040
1,856
349,460
437,051 $
93,487 $
91,082
34,083
21,698
270,975
47,226
1,879
69,122
56,492
16,868
702,912
55,634
68,942
15,954
13,690
174,814
2,646
626
332,306
370,606 S
Business-type Activities
2024
2023
(As restated)
80,276 $
218,231
9,434
2,808
28,550
488
37,387
67,303
444,477
50,925
185,323
5,118
1,676
24,943
314
268,299
176,178 $
80,276 $
210,914
9,202
2,476
28,003
488
37,387
51,643
420,389
48,779
181,043
4,488
1,607
24,273
152
260,342
160,047 $
Total
2024
2023
(As restated)
177,806 $
322,774
45,815
25,427
310,860
47,226
4,095
2,907
106,509
170,701
16,868
1,230,988
109,062
258,420
22,154
16,446
205,467
4,040
2,170
173,763
301,996
43,285
24,174
298,978
47,226
2,367
106,509
108,135
16,868
I, 123,301
104,413
249,985
20,442
15,297
199,087
2,646
778
617,759 592,648
613,229 _$ __ 53_0~,6_53_
Major capital improvement projects included Homeless Navigation Center, Pedestrian enhancements and street repaving, Highway Safety Improvement Program, and Wastewater Treatment Plant improvements. At the Airport, construction improvements included upgrades to terminal concessions for shopping and dining, passenger service desks, lighting and flooring.

Variances over the prior year reflect the assets shown as net of depreciation. For additional details of changes in capital assets, please see Note 6 Capital Assets in the Notes section of the accompanying financial statements. 13 Item 3A - Page 36

LONG-TERM DEBT
(in thousands)
Governmental Act1v111es Business-type Ae1ivn1es Total
2024 2023 2024 2023 2024 2023
Compensated Absences $ 8,723 $ 8,723 $ 1,855 $ 1,489 $ 10,578 $ 10,212 Clauns and Judgments 11 ,133 10,455 11,133 10,455
Lease & Subscnptmn L1ab1ht1es 48.304 46,05 1 38 76 48,342 46,127 F mance Purchase 3,993 4,565 3,993 4,565
Notes Payable 18,956 19,834 22,541 23,263 41 ,497 43,097 Lease Revenue Bonds 79,952 87, 10 1 18,948 21,711 98,900 108.812 Special Assessment Bonds 3,065 3,460 3,065 3,460
Pension Obhg111on Bonds 17,020 17,741 17,020 17,741
Subtotal 191,146 197,930 43,382 46,539 234 ,528 244,469 Net OPEB Liability 109,805 113,035 7,398 7,469 11 7,203 120,504 Net Pension Liability 180, 127 171,795 22,221 22,922 202,348 194,717 Total Long-Term Debt $ 481,078 $ 482,760 $ 73,001 $ 76,930 $ 554,079 $ 559,690 As of June 30, 2024 , the City' s total outstanding debt long-term debt was $554 million , which is $5.6 million less than the prior year. The decrease is largely due to the drop in net OPEB liability resu lting from change in actuarial assumpt ion resulting in lower total OPEB liability. Also, in fiscal year 2024 the City continu ed to pay down debt obligations which resulted in lower long-term liability overall.

Additional detailed information regarding long term debt may be found in the Note 7 - Long Term Liabilities , Note 8 - Compensated Absences, Note 9 - Claim s and Judgement s, Note 10 - Defined Benefit Pension Plan and Note 11 - Other Post-Retirement Health Care Benefits in the accompan ying financial statements.

Economic Factor s and Next Year ' s Budget
Durin g the fiscal year the C ity of Palm Springs experienced continued growth in the tourism industry resu lting in another strong finan cial year for the City. Palm Spr ings had historical gro wth in propert y tax revenue due to the increase in sales in the local housing mark et and ended the yea r with a h istorical high in General Fund reven ue. In addition, the Palm Spring s Internat ional Airport had record passenger traffic, surpassing the number of passengers in 2023 by over 16,400 and also had a successful year with sign ificant growth in revenue.

In preparing the budget for fiscal yea r 2025-2026, manage ment feels that the tourism industry wi ll remain strong but trend down slightly from fiscal yea r 2024 . One factor that could be detrimenta l to the tourism industry would b e a recess ion. In an econo mic recession, people trave l less, and this cou ld affect the City significant ly. The talk of a recess ion is ongoing , but it doesn't appear in the near term, and was cons idered in the preparat ion of the 2024-2025 budget.

Carefu l consideration s are balanc ed betw een the wellbeing and safe ty of Palm Springs residents and visitors and bus iness operat ions, while committ ed to provide high standar ds of public services. The b udget for fisca l year 2024- 2025 reflect s continued fiscal prudence and mainta ins high quality standard s provided for the City of Palm Springs residents and visitors.

The City's 2024-2025 Financia l Plan can be found on the City' s website at www .palmspring sca.gov.

Contac ting the City's Financia l Management:

This financial report is designed to provide the citizens, taxpa yers, customers, investo rs, and creditors with a genera l overview of the City 's finances and to show the City's accountability for the money it rece ives. If you have questio ns about this report or n eed additional financial informa tion, contact the Departm ent of Finance , City of Palm Spri ngs, 3200 E. Tahquit z Canyon Way, Palm Spring s, CA 92262; or visit our webs ite at www. palmspring sca.gov or call (760) 323 -8221.
14 Item 3A - Page 37

BASIC FINANCIAL STATEMENTS
15 Item 3A - Page 38

GOVERNMENT-WIDE FINANCIAL STATEMENTS
17 Item 3A - Page 39
Current assets:

Cash and investments
Accounts receivable
Interest receivable
ASSETS
Special assessments receivable
Internal balances
Lease receivable, due within one year
Prepaid items
Deposits
Inventories
Total current assets
Noncurrent assets:

Restricted investments with fiscal agent
Notes and loans
Lease receivable, due in more than one year
Land held for resale
Capital assets, not being depreciated
Capital assets, being depreciated, net
Intangible capital assets, being amortized, net
Total capital assets
Total noncurrent assets
Total assets
City of Palm Springs
Statement of Net Position
June 30, 2024
$
Governmental
Activities
350,816,324
27,716,644
763,337
2,640,000
979,714
167,888
191,926
120,718
383,396,551
282,541
19,344,588
32,231,322
136,203
189,388,396
199,818,751
47,844,678
437,051,825
489,046,479
872,443,030

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 3,374,486
Pension related 48,200,682
OPEB related 10,593,714
Total deferred outflows of resources 62,168,882
See accompanying Notes to the Basic Financial Statements. 18 Primary Government
$
Business-Type
Activities
163,979,670
6,867,428
366,628
(2,640,000)
175,31 I
26,071
168,775,108
12,726,448
104,689,700
71,314,673
173,386
176,177,759
188,904,207
357,679,315
28,881
6,336,267
713,484
7,078,632
$
Total
514,795,994
34,584,072
763,337
366,628
979,714
343,199
191,926
146,789
552,171,659
13,008,989
19,344,588
32,231,322
136,203
294,078,096
271,133,424
48,018,064
613,229,584
677,950,686
1,230,122,345
3,403,367
54,536,949
11,307,198
69,247,514
Item 3A - Page 40
City of Palm Springs
Statement of Net Position (Continued)
June 30, 2024
Current liabilities:

Accounts payable
Accrued liabilities
Accrued interest payable
Deposits payable
Unearned revenues

LIABILITIES
Compensated absences, due within one year
Claims and judgments, due within one year
Bonds and notes payable, due within one year
Lease liability, due within one year
Subscription liability, due within one year
Total OPEB liability, due within one year
Total current liabilities
Noncurrent liabilities:

Compensated absences, due in more than on year
Claims and judgments, due in more than on year
Bonds and notes payable, due in more than on year
Lease liability, due in more than one year
Subscription liability, due in more than one year
Net pension liability
Total OPEB liability, due in more than one year
Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Pension related
OPEB related
Leases
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Restricted for:

Community development projects
Public safety grants and programs
Public works projects
Debt service
Library
Special projects
Total restricted
Unrestricted (deficit)
Total net position
See accompanying Notes to the Basic Financial Statements. $
19 Governmental
Activities
34,401,947
1,102,220
587,752
1,982,185
4,391,066
6,835,146
4,922,495
10,238,935
917,177
1,130,106
4,368,469
70,877,498
2,691,864
6,211,263
112,720,265
45,752,325
503,492
180,127,408
109,805,138
457,811,755
528,689,253
2,517,837
30,091,480
32,864,398
65,473,715
286, 183,654
21,995,857
7,544,105
28,297,269
1,647,474
1,691,062
1,835,932
63,011,699
(8,746,409)
340 448 944
Primary Government
Business-Type
Activities
$
8,394,197
224,393
1,481,960
570,097
1,330,538
3,241,960
38,118
294,215
15,575,478
524,002
38,247,002
22,220,877
7,398,120
68,390,001
83,965,479
380,550
2,026,654
2,407,204
144,351,287
3,054,721
3,054,721
130,979,256
278,385,264 $
Total
42,796,144
1,326,613
2,069,712
2,552,282
4,391,066
8,165,684
4,922,495
13,480,895
917,177
1,168,224
4,662,684
86,452,976
3,215,866
6,211,263
150,967,267
45,752,325
503,492
202,348,285
117,203,258
526,201,756
612,654,732
2,898,387
32,118,134
32,864,398
67,880,919
430,534,941
21,995,857
7,544,105
28,297,269
4,702,195
1,691,062
1,835,932
66,066,420
122,232,847
618,834,208
Item 3A - Page 41
City of Palm Springs
Statement of Activities
For the Year Ended June 30, 2024
Program Revenues
Capital Grants
Charges for Operating Grants and
Expenses Services and Contributions Contributions
Functions/Programs
Governmental Activities:

General government $ 37,081,736 $ 14,636,077 $ 1,975,468 $ 17,929,542 Public safety 82,950,898 3,704,313 3,890,796
Cultural and convention center 12,527,860
Parks and recreation 14,967,421 3,348,791 75,390
Public works 26,589,099 3,836,827 5,129,596 30,781,998
Library 3,388,540 44,606 207
Interest on long tenn debt 4,176,711
Total Governmental Activities 181,682,265 25,570,614 11,071,457 48,711,540 Business-Type Activities:

Airport 41,034,820 59,158,970 3,588,083
Wastewater 8,965,236 11,944,343
Golf Course 5,841,678 5,937,059
Total Business-Type Activities 55,841,734 77,040,372 3,588,083 Total Primary Government $ 237.523 999 $ 102,610,986 $ 14 659 540 $ 48 711540 See accompanying Notes to the Basic Financial Statements. 20 Item 3A - Page 42
City of Palm Springs
Statement of Activities (Continued)
For the Year Ended June 30, 2024
Net (Expense) Revenue and Changes in Net Positions
Governmental Business-Type
Activities Activities Total
Functions/Programs
Governmental Activities:

General government $ (2,540,649) $ $ (2,540,649)
Public safety (75,355,789) (75,355,789)
Cultural and convention center (12,527,860) (12,527,860) Parks and recreation (11,543,240) (11,543,240)
Public works 13,159,322 13,159,322
Library (3,343,727) (3,343,727)
Interest on long term debt (4,176,711) (4,176,711)
Total Governmental Activities (96,328,654) (96,328,654) Business-Type Activities:

Airport 21,712,233 21,712,233
Wastewater 2,979,107 2,979,107
Golf Course 95,381 95,381
Total Business-Type Activities 24,786,721 24,786,721
Total Primary Government (96,328,654) 24,786,721 (71,541,933) General Revenues:

Taxes:

Property taxes 39,075,556 39,075,556
Transient occupancy taxes 51,057,120 51,057,120
Sales taxes 51,395,597 51,395,597
Franchise taxes 4,153,894 4,153,894
Utility users tax 13,688,713 13,688,713
Other taxes 6,980,699 6,980,699
Motor vehicle in lieu - unrestricted 7,382,166 7,382,166 Use of money and property 11,504,633 6,426,329 17,930,962 Gain on sale of capital assets 298,258 (888) 297,370
Other 492,366 492,366
Total General Revenues 186,029,002 6,425,441 192,454,443 Transfers:

Transfers (979,451) 979,451
Total Transfers (979,451) 979,451
Changes in Net Position 88,720,897 32,191,613 120,912,510 Net Position - Beginning of year 251,728,047 246,193,651 497,921,698 Net Position -End of year $ 340 448 944 $ 278,385.264 $ 618.834,208 See accompanying Notes to the Basic Financial Statements. 21 Item 3A - Page 43
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22 Item 3A - Page 44

FUND FINANCIAL STATEMENTS
23 Item 3A - Page 45

GOVERNMENTAL FUND FINANCIAL STATEMENTS
25 Item 3A - Page 46
City of Palm Springs
Balance Sheet
Governmental Funds
June 30, 2024
Major Funds
Measure J Nonmajor Total
Capital Projects Capital Projects Governmental Governmental General Fund Fund Funds Funds
ASSETS
Cash and investments $ 144,863,325 $ 42,930,103 $ 35,137,652 $ 49,316,207 $ 272,247,287 Accounts receivable 16,629,497 3,667,436 4,285,445 2,809,957 27,392,335 Interest receivable 344,689 103,927 44,782 107,431 600,829 Prepaid items 167,888 167,888
Deposits 191,926 191,926
Lease receivable 33,211,036 33,211,036
Notes and loans 166,667 19,177,921 19,344,588
Advances to other funds 1,210,000 1,210,000
Land held for resale 49,950 86,253 136,203
Restricted assets:

Cash and investments with fiscal agent 282,541 282,541
Total assets $ 196 834 978 $ 46 701.466 $ 39.467.879 $ 71,780,310 $ 354,784,633

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 9,549,202 $ 3,193,509 $ 8,769,482 $ 2,013,381 $ 23,525,574 Accrued liabilities 991,431 2,334 3,396 26,310 1,023,471 Deposits payable 1,923,324 1,097 57,764 1,982,185
Due to other funds
Unearned revenues 2,748,566 1,318,244 324,256 4,391,066 Total liabilities 15,212,523 3,195,843 10,092,219 2,421,711 30,922,296 Deferred inflows of resources:

Unavailable revenues 769,964 4,111,528 528,001 5,409,493 Leases 32,864,398 32,864,398
Total deferred inflows of resources 33,634,362 4,111,528 528,001 38,273,891 Fund balances:

Nonspendable 1,786,431 1,786,431
Restricted 63,011,699 63,011,699
Committed 3,211,707 3,211,707
Assigned 46,631,967 43,505,623 25,264,132 5,818,899 121,220,621 Unassigned 96,357,988 96,357,988
Total fund balances 147,988,093 43,505,623 25,264,132 68,830,598 285,588,446 Total liabilities, deferred inflows
of resources, and fund balances $ 196,834,978 $ 46,701,466 $ 39,467,879 $ 71,780,310 $ 354, 784,633 See accompanying Notes to the Basic Financial Statements. 27 Item 3A - Page 47
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28 Item 3A - Page 48
City of Palm Springs
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Total Fund Balances~ Total Governmental Funds
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not current financial resources and therefore are not reported in governmental funds. Those assets consist of:

Amount reported in government-wide statement of position:

Nondepreciable assets
Depreciable assets, net of accumulated depreciation
Intangible assets, net of accumulated amortization
Less: Amount reported in Internal Service Fund
$ 189,388,396
199,818,751
47,844,678
(28,162,513)
Governmental funds report the effect of premiums, discounts and gains or losses on debt refundings when the debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

Loss on defeasance of debt (net of accumulated amortization), net of $7,839 reported on Internal Service Fund.

Unavailable revenues are not available to pay for current period expenditures and therefore are deferred in the funds but recognized as revenue in the Statement of Activities.

Long-tenn liabilities are not due and payable in the current period and therefore, are not reported in the governmental funds:

Compensated absences, net of$453,950 reported in Internal Service Fund Bonds and notes payables, net of$17,742,055 reported in Internal Service Fund
Lease liability
Subscription liability
(9,073,060)
(105,217,145)
(46,669,502)
(1,633,598)
Net pension liability and related deferred outflows and inflows of resources are not due and payable in the current period; therefore, are not reported as government funds' liabilities. They are reported in the Statement of Net Position.

Deferred outflows of resources, net of SI, 139,788 reported in Internal Service Fund Net pension liability, net of$3,997,162 reported in Internal Service Fund Deferred inflows of resources, net of$68,455 reported in Internal Service Fund 47,060,894
(I 76,130,246)
(2,449,382)
Total OPEB liability and related deferred outflows and inflows of resources are not due and payable in the current period; therefore, are not reported as government funds' liabilities. They are reported in the Statement of Net Position.

Deferred outflows of resources, net of$234,059 reported in Internal Service Fund Total OPEB liability, net of$2,519,172 reported in Internal Service Fund Deferred inflows of resource, net of$664,845 reported in Internal Service Fund 10,359,655
(111,654,435)
(29,426,635)
Accrued interest payable due on long-tenn debt not reported in the governmental funds, net of $117,243 reported in Internal Service Fund.

Internal service funds are used by management to charge the costs of certain activities, such as self-insurance, to individual funds. The assets and liabilities of the internal service funds are added to the statement of net position.

Net position of governmental activities
See accompanying Notes to the Basic Financial Statements. 29 $ 285,588,446
408,889,312
3,366,647
5,409,493
(162,593,305)
(131,518,734)
(130,721,415)
(470,509)
62,499,009
$ 340,448,944
Item 3A - Page 49
City of Palm Springs
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
Fonnerly
Major Funds Major Fund
Measure J General
Capital Projects Capital Projects Debt Service
General Fund Fund Fund
Revenues:

Taxes $ 15 I, 779,208 $ 21,490,339 $
Intergovernmental 18,373,659 25,047,681
Licenses and permits 8,286,527
Fines and forfeitures 1,087,804
Use of money and property 6,943,358 1,519,503 819,380
Charges for services 7,259,600 385,250
Miscellaneous 1,121,095 169,347
Total revenues 194,851,251 23,009,842 26,421,658
Expenditures:

Current:

General government 34,071,326
Public safety 75,935,603 350,454
Cultural and convention center 8,757,951
Parks and recreation 8,137,367
Public works 23,193,197 692,130
Library 3,218,654
Capital outlay 26,133,295 15,602,020 30,921,210
Debt service:

Principal retirement 1,944,949 438,810
Interest and fiscal charges 15,067 19,377
Total expenditures 181,407,409 16,294,150 31,729,851

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 13,443,842 6,715,692 (5,308,193)
Other financing sources (uses):

Issuance of debt 4,635,556
Proceeds from sale of capital assets 124,201
Transfers in 853,306 14,499,000
Transfers out (23,901,273) (3,133,700) (853,306)
Total other financing sources (uses) (19,141,516) (2,280,394) 13,645,694 NET CHANGE IN FUND BALANCES (5,697,674) 4,435,298 8,337,501 FUND BALANCES:

Beginning of year. as previously reported 153,685,767 39,070,325 16,926,631 6,563,957 Change in the financial reporting entity
(major to nonmajor fund) (6,563,957)
Beginning of year, as restated (Note 14) 153,685,767 39,070,325 16,926,631 End of year $ 147,988.093 $ 43,505.623 $ 25,264,132 $
See accompanying Notes to the Basic Financial Statements. 30 Item 3A - Page 50
Revenues:

City of Palm Springs
Statement of Revennes, Expenditures, and Changes in Fnnd Balances (Continned) Governmental Funds
For the Year Ended Jnne 30, 2024
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Taxes $ 3,093,466 $ 176,363,013
Intergovernmental 10,997,539 54,418,879
Licenses and permits 209,451 8,495,978
Fines and forfeitures 28,125 1,115,929
Use of money and property 2,004,797 11,287,038
Charges for services 3,489,100 11,133,950
Miscellaneous 380,128 1,670,570
Total revenues 20,202,606 264,485,357
Expenditures:

Current:

General government 931,080 35,002,406
Public safety 3,080,411 79,366,468
Cultural and convention center 1,019,890 9,777,841
Parks and recreation 8,137,367
Public works 1,329,279 25,214,606
Library 172,972 3,391,626
Capital outlay 6,652,253 79,308,778
Debt service:

Principal retirement 8,321,710 10,705,469
Interest and fiscal charges 3,015,425 3,049,869
Total expenditures 24,523,020 253,954,430

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (4,320,414) I0,530,927
Other financing sources (uses):

Issuance of debt 4,635,556
Proceeds from sale of capital assets 124,201
Transfers in 11,556,522 26,908,828
Transfers out (27,888,279)
Total other financing sources (uses) 11,556,522 3,780,306 NET CHANGE IN FUND BALANCES 7,236,108 14,311,233
FUND BALANCES:

Beginning of year, as previously reported 55,030,533 271,277,213 Change in the financial reporting entity
(major to nonmajor fund) 6,563,957
Beginning of year, as restated (Note 14) 61,594,490 271,277,213 End of year $ 68,830.598 $ 285.588.446
See accompanying Notes to the Basic Financial Statements. 31 Item 3A - Page 51
City of Palm Springs
Reconciliation of the Governmental Fonds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2024
Net change in fund balances - total governmental funds:

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

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital expenditures exceeded depreciation in the current period:

Capital outlay expenditures, net of functional expenses of $1,755,556 and $7,168,629 reported in Internal Service Funds
Net effect on disposal of capital assets, net of $(24, 144) reported in Internal Service Funds Depreciation/amortization expense, net of$2,044,072 reported in Internal Service Funds $ 77,553,222
(13,598)
(16,164,608)
Revenues that are measurable but not available and are reported as unavailable revenue under the modified accrual basis of accounting in the governmental funds.

Proceeds from long•tenn debt provided current financial resources to governmental funds, but issuing debt increased long•tenn liabilities in the Government•Wide Statement of Net Position. Repayment of bond principal was an expenditure in the governmental funds, but the repayment reduced Iong•term liabilities in the Goverrunent•Wide Statement of Net Position.

Issuance of debt
Principal repayment of long•term liabilities, net of$ l,637,020 reported in Internal Service Fund
(4,635,556)
10,705,469
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:

Pension expense, net of$20,784,415 contribution after measurement date OPEB expense, net of$4,434,499 contribution after measurement date Net change in compensated absences, net of $(29, 170) reported in Internal Service Funds (7,857,781)
3,799,763
(774,480)
Under the modified accrual basis of accounting used in the governmental funds, expenditures are not recognized for transactions that are not normally paid with expendable available financial resources. In the Statement of Activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when financial resources are available:

Interest on long•tenn liabilities
Amortization of premium, net of$20,049 reported in Internal Service Funds Amortization of debt discount
Amortization of deferred amount on refunding, net of $2,767 reported on Internal Service Fund
(438,051)
95,463
(3,658)
(400,724)
Internal service funds are used by management to charge the costs of certain activities, such as self•insurance, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities.

Change in net position of governmental activities
See accompanying Notes to the Basic Financial Statements. 32 $ 14,311,233
61,375,016
3,508,572
6,069,913
(4,832,498)
(746,970)
9,035,631
$ 88,720,897
Item 3A - Page 52

PROPRIETARY FUND FINANCIAL STATEMENTS
33 Item 3A - Page 53
City of Palm Springs
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Business-Type Activities Activities
Nonmajor
Airport Wastewater (Golf Course) Internal
Enterprise Fund Enterprise Fund Ente~rise Fund Total Service ASSETS
Current assets:

Cash and investments $ 114,056,742 $ 43,851,447 $ 6,071,481 $ 163,979,670 $ 78,569,037 Receivable:

Accounts 5,460,596 777,594 629,238 6,867,428 324,309
Interest 256,707 101,100 8,821 366,628 162,508
Prepaid items 175,311 175,311
Inventories 26,071 26,071 120,718
Restricted:

Cash and investments with fiscal agent 12,725,086 1,362 12,726,448 Total current assets 132,700,513 44,730,141 6,710,902 184,141,556 79,176,572 Noncurrent assets:

Advances to other funds 1,430,000
Capital assets, nondepreciable 63,084,635 36,283,368 5,321,697 I 04,689, 700 5,475,081 Capital assets, net of accwnulated depreciation 35,186,744 35,932,999 194,930 71,314,673 22,687,432 Intangible capital asset, net of accumulated amortization 173,386 173,386 Total capital assets 98,444,765 72,216,367 5,516,627 176,177,759 28,162,513 Total noncurrent assets 98,444,765 72,216,367 5,516,627 176,177,759 29,592,513 Total assets 231,145,278 116,946,508 12,227,529 360,319,315 108,769,085

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 28,881 28,881 7,839
Pension related 6,319,724 16,543 6,336,267 1,139,788
OPEB related 712,353 1,131 713,484 234,059
Total deferred outflows of resources 7,032,077 17,674 28,881 7,078,632 1,381,686 See accompanying Notes to the Basic Financial Statements. 34 Item 3A - Page 54
City of Palm Springs
Statement of Net Position (Continned)
Proprietary Funds
Jnne 30, 2024
Governmental
Business-Type Activities Activities
Nonmajor
Airport Wastewater (Golf Course) Internal
Ente!Erise Fund Enterprise Fund Ente~rise Fund Total Service

LIABILITIES
Current liabilities:

Accounts payable 4,188,832 3,966,410 238,955 8,394,197 10,876,373 Accrued liabilities 222,917 1,476 224,393 78,749
Interest payable 60,208 287,399 1,134,353 1,481,960 117,243 Deposits payable 70,097 500,000 570,097
Compensated absences, due within one year 1,330,538 1,330,538 453,950 Claims and judgments, due within one year 4,922,495
Subscription liability, due within one year 38,118 38,118 Bonds and notes payable, due within one year 1,775,000 731,104 735,856 3,241,960 1,719,978 Total OPEB liability, due within one year 293,749 466 294,215 96,517 Total current liabilities 7,979,459 4,986,855 2,609,164 15,575,478 18,265,305 Noncurrent liabilities:

Advances from other funds 2,640,000 2,640,000
Compensated absences, due in more than one year 524,002 524,002 Claims and judgments, due in more than one year 6,211,263 Bonds and notes payable, due in more than one year 14,640,958 21,809,955 1,796,089 38,247,002 16,022,077 Net pension liability 22,162,862 58,015 22,220,877 3,997,162 Total OPEB liability, due in more than one year 7,386,399 11,721 7,398,120 2,422,655 Total noncurrent liabilities 44,714,221 21,879,691 4,436,089 71,030,001 28,653,157 Total liabilities 52,693,680 26,866,546 7,045,253 86,605,479 46,918,462

DEFERRED INFLOW OF RESOURCES
Pension related 379,556 994 380,550 68,455
OPEB related 2,023,442 3,212 2,026,654 664,845
Total deferred inflows of resources 2,402,998 4,206 2,407,204 733,300

NET POSITION
Net investment in capital assets 91,662,416 49,675,308 3,013,563 144,351,287 10,428,297 Restricted for debt service 3,053,359 1,362 3,054,721
Unrestricted 88,364,902 40,418,122 2,196,232 130,979,256 52,070,712 Total net position $ 183,080,677 $ 90 093 430 $ s,211,151 $278,385.264 $ 62.499,009 See accompanying Notes to the Basic Financial Statements. 35 Item 3A - Page 55
City of Palm Springs
Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, 2024
Governmental
Business 4 Type Activities Activities
Nonmajor
Airport Wastewater (Golf Course) Internal
Enterprise Fund Enterprise Fund Enterprise Fund Total Service OPERATING REVENUES:

Charges for services $ 59,158,970 $ 11,861,681 $ 5,937,059 $ 76,957,710 $ 83,777,939 Miscellaneous 82,662 82,662 35,632
Total operating revenues 59,158,970 11,944,343 5,937,059 77,040,372 83,813,571 OPERATING EXPENSES:

Administration and general 2,537,252 25,938 24,691 2,587,881 1,666,697 Personnel services 17,007,784 53,534 17,061,318
Materials and supplies 3,682,964 3,682,964 1,252,768
Maintenance operations 2,734 2,734 4,422,326
Facilities mainte.nance 8,341,185
Retirement and benefits 28,936,304
Retiree health insurance 3,602,344
Other claims and insurance 605,869 605,869 11,437,492
Depreciation and amortization expense 5,008,626 2,911,951 188,222 8,108,799 2,044,073 Utilities 1,536,188 152,923 1,689,111
Other charges and services 10,091,153 4,822,085 5,578,258 20,491,496 Cogeneration electricity 206,496 206,496 1,316,050
Medical, health, and life insurance 10,927,455
Workers compensation 436,407 6,683 443,090 3,729,455
Total operating expenses 40,509,604 8,578,983 5,791,171 54,879,758 77,676,149 OPERATING INCOME 18,649,366 3,365,360 145,888 22,160,614 6,137,422 NONOPERATING INCOME (EXPENSES):

Investment earning 4,355,741 1,963,504 107,084 6,426,329 2,403,200 Interest expense (525,216) (386,253) (50,507) (961,976) (379,872) Intergovernmental revenue 3,588,083 3,588,083 687,226
Gain (loss) on disposal of capital assets 2,475 (3,363) (888) 187,655 Total nonoperating income 7,421,083 1,577,251 53,214 9,051,548 2,898,209 NET INCOME BEFORE TRANSFERS 26,070,449 4,942,611 199,102 31,212,162 9,035,631 TRANSFERS:

Transfers in 979,451 979,451
Total Transfers 979,451 979,451
CHANGES IN NET POSITION 26,070,449 4,942,611 1,178,553 32,191,613 9,035,631 NET POSITION:

Beginning of year 157,010,228 85,150,819 4,032,604 246,193,651 53,463,378 End of year $ 183,080,677 $ 90,093,430 $ 5211.157 $ 278,385.264 $ 62 499 009 See accompanying Notes to the Basic Financial Statements. 37 Item 3A - Page 56
City of Palm Springs
Statement of Cash Flows
Proprietary Fnnds
For the Year Ended June 30, 2024
Governmental
Business-Type Activities Activities
Nonmajor
Airport Wastewater (Golf Course) Internal
Ente!l!rise Fund Ente~rise Fund Ente!I!rise Fund Total Service

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 65,937,867 $ 11,635,219 $ 5,550,323 $ 83,123,409 $ 83,984,071 Cash paid to suppliers for goods and services (20,932,925) (4,819,400) (5,713,246) (3 I ,465,571) (5,298,649) Cash paid to employees for services (13,920,965) (53,711) (13,974,676) (32,310,902) Cash paid for insurance premium and claims (28,504,688) Net cash provided (used in) by operating activities 31,083,977 6,762,108 (162,923) 37,683,162 17,869,832

CASH FLOWS FROM NONCAPIT AL
FINANCING ACTIVITIES:

Cash transfers in 979,451 979,451
Grant revenue received 3,588,083 3 588,083 687,226
Nd cash provided by noncapital financing activities 3,588,083 979,451 4 567 534 687226

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (9,112,573) (15,128,508) (24,241,081) (7,138,500) Proceeds from disposal of capital assets 2,475 2,475 211,799 Principal paid on bonds and notes payable (1,727,302) (718,882) (725,355) (3,171,539) (1,637,020) Interest paid (81 l,341J (395,418J (I 16.589J (l,323,348J (407,798J Net cash (used in) capital and related
financing activilies ( 11,648,74 I J (16,242,808J (84 l,944J (28,733,493J (8,971,519J CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 4 309,967 2,005,590 98,263 6413,820 2,367,969 Net cash provided by investing activities 4,309,967 2,005,590 98,263 6413820 2,367 969 Net change in cash and cash equivalents 27,333,286 (7,475,110) 72,847 19,931,023 11,953,508 CASH AND CASH EQUIVALENTS:

Beginning of year 99,448,542 51,326,557 5,999,996 156 775,095 66,615 529 End of year $ 126 781 828 $ 43 851 447 $ 6 072 843 $ 176 706 I 18 $ 78 569 037 CASH AND CASH EQUIVALENTS:

Cash and investments 114,056,742 43,851,447 6,071,481 163,979,670 78,569,037 Cash and investments with fiscal agent 12,725,086 1,362 12 726 448 Total cash and cash equivalents $ 126781828 $ 43 851 447 $ 6 072 843 $ 176 706 I 18 $ 78 569 037 See accompanying Notes to the Basic Financial Statements. 38 Item 3A - Page 57
City of Palm Springs
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
Business-Type Activities
Nonmajor
Governmental
Activities
Airport
Enterprise Fund
Wastewater (Golf Course) Internal
Reconciliation of Operating Income to
to Net Cash Provided by (Used in) Operating Activities:

Operating income
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:

Depreciation and amortization
Changes in assets and liabilities:
(Increase)/decrease in accounts receivables
(lncrease)/decrease in pI'epaids
(lncrease)/decrease in inventories
(lncrease)/decrease in deferred outflows of resources
Increase/(decrease) in accounts payable
Increase/(decrease) in accrued liabilities
Increase/(decrease) in compensated absences
Increase/(decrease) in claims and judgments
Increase/(decrease) in deposits payable
lncrease/(decrease) in net pension liabilities
Increase/(decrease) in net OPEB liabilities
Increase/(decrease) in deferred inflows ofresources
Net cash provided by (used in) operating activities
See accompanying Notes to the Basic Financial Statements. $
18,649,366
5,008,626
6,778,613
(162,181)
(10,700)
1,032,317
894,187
51,546
365,286
284
(710,654)
223,591
(1,036,304)
JI 083 977
39 Enterprise Fund Enterprise Fund ---'T"o;::ta::.1 __ ---'S:;;:<::.rv"'ic:;;:ec___ 3,365,360 145,888
2,911,951 188,222
(309,124) (386,736)
(1,029)
786,936 (110,297)
l06
9,617
137
(1,846)
$ 6 762 l08 $ {162 923} $
22,160,614
8,108,799
6,082,753
(162,181)
(10,700)
1,031,288
1,570,826
51,652
365,286
284
(701,037)
223,728
(1,038,150)
37 683 162 $
6,137,422
2,044,073
170,500
27,141
823,611
9,172,605
17,913
29,170
679,133
(577,528)
88,717
(742,925)
17 869 832
Item 3A - Page 58
This page intentionally left blank.
40 Item 3A - Page 59

FIDUCIARY FUND FINANCIAL STATEMENTS
41 Item 3A - Page 60
ASSETS:

Pooled cash and investments
Interest receivable
Land held for resale
City of Palm Springs
Statement of Fiduciary Net Position
Fiduciary Fund
June 30, 2024
Restricted cash and investments with fiscal agent
Total assets
DEFERRED OUTFLOWS OF RESOURCES:

Deferred charges on refunding
Total deferred outflows of resources
LIABILITIES:

Accounts payable
Accrued interest
Long-tenn liabilities:

Due in one year
Due in more than one year
Total liabilities
NET POSITION:

Restricted for Successor Agency
Total net position (deficit)
See accompanying Notes to the Basic Financial Statements. 43 Private
Purpose Trust
Fund
Successor
Agency Fund
$ 433,575
905
6,325
1,803,431
2,244,236
131,843
131,843
1,864,736
324,929
1,425,000
22,523,053
26,137,718
(23,761,639)
$ (23,761,639)
Item 3A - Page 61
ADDITIONS:

City of Palm Springs
Statement of Change in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
Redevelopment property taxes trust fund
Redevelopment investment income
Total additions
DEDUCTIONS:

Administrative expenses
Interest expense
Total deductions
Change in net position
NET POSITION:

Beginning of year
End of year
See accompanying Notes to the Basic Financial Statements. 44 Private
Purpose Trust
Fund
Successor
Agency Fund
$ 2,695,726
49,624
2,745,350
154,533
808,107
962,640
1,782,710
(25,544,349)
$ (23,761,639)
Item 3A - Page 62

NOTES TO THE BASIC FINANCIAL STATEMENTS
45 Item 3A - Page 63
City of Palm Springs
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1 - Summary of Significant Accounting Policies
The basic financial statements of the City of Palm Springs, California (the "City") have been prepared in conformity with generally accepted accounting principles ("GAAP") as applied to government units. The Governmental Accounting Standards Board ("GASB") is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting principles are described below.

A. Description of Reporting Entity
The City of Palm Springs was incorporated in 1938 under the general laws of the State of California. Effective July 12, 1994, the City of Palm Springs became a Charter City which was approved by the citizens of the City of Palm Springs on June 7, 1994. The City operates under the Council-Manager form of government.

As required by generally accepted accounting principles, the financial statements of the City of Palm Springs include the financial activities of the City (the primary government), and the Palm Springs Public Financing Authority (the "Authority"). This blended component unit is discussed below and is included in the reporting entity because of the significance of its operations and financial relationship with the City.

Blended Component Units
City of Palm Springs Public Financing Authority
The City of Palm Springs Public Financing Authority was created by a joint exercise of powers agreement between the City of Palm Springs and the former Community Redevelopment Agency of the City of Palm Springs on February I, 1991. The purpose of the Authority is to provide, through the issuance of debt, financing necessary for various capital improvements. The Authority is administered by the Board who are the members of the City Council and the Mayor. The Authority's sole source of income is installment sale, loan and lease payments received from the City and the Successor Agency to the Former Community Redevelopment Agency which are used to meet the debt service requirements on debt issues. The Authority is blended into various funds of the City. The dissolution of the Former Agency, and the assignment of the joint powers agreement to the City acting as successor agency to the Former Agency, did not affect the validity of the joint powers' agreement.

Since the City Council serves as the governing board for the Palm Springs Public Financing Authority, the Authority is considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City's operations and so data from these units are reported with the primary government. The Palm Springs Public Financing Authority issues separate component unit financial statements which can be obtained at the City Hall.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-Wide and Fund 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 non-fiduciary activities of the primary government and its component unit.

For the most part, the effect of interfund activity has been removed from these statements and eliminations have been made to minimize the double counting of internal activities. 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. 47 Item 3A - Page 64
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended Jone JO, 2024
Note 1- Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Acco1111ting, and Financial Statement Presentation (Continued) Government-Wide and Fund Financial Statements (Continued) The statement of activities demonstrates the degree to which the direct expen~es of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include I) 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.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue when all eligibility requirements have been met.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the government's enterprise funds and various other governmental funds. Elimination of these charges would distort the direct costs and program revenues reported for the function concerned.

Amounts reported as program revenues include I) charges to customers or applicants for goods, services, or privileges provided, 2) fines, forfeits and penalties, 3) grants and contributions that are restricted to meeting the operational or capital requirement of a particular function and 4) other miscellaneous revenues that directly benefit a particular function and do not fit into any other category. General revenues include all taxes without purpose restriction.

Governmental Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers tax revenues to be available if they are collected within 60 days of the end of the current fiscal year and other revenues when collected within one year of the end of the current fiscal year. 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.

The primary revenue sources susceptible to accrual are property taxes, sales taxes, highway user taxes, state gas tax subventions, intergovernmental revenues, franchise fees, transient occupancy tax, charges for services, and investment income associated with the current fiscal period and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.
48 Item 3A - Page 65
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1- Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental Fund Financial Statements (Continued)
The City reports the following major governmental funds:

General Fund - This is the primary operating fund of the City. It accounts for all activities of the general government, except those required to be accounted for in another fund.

Measure J Capital Projects Fund This fund is used to account for the costs related to various capital projects funded by Measure J.

Capital Projects Fund - To account for the acquisition and construction of major capital facilities other than those financed by proprietary and trust funds.

Proprietary Fund Financial Statements
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds and internal service funds are charges to customers or user funds for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The City reports the following major proprietary funds:

Airport Enterprise Fund -This fund is used to account for operation of the City's international airport.

Wastewater Enterprise Fund - This fund is used to account for operation of the City's wastewater treatment plant and related capital expenditures.

Additionally, the City reports the following proprietary fund types:

Internal Service Funds - These funds are used to account for motor vehicle replacement, facilities maintenance, employee benefits, risk management, retiree health insurance, the City's cogeneration plant and equipment replacement. Departments of the City are charged for the services provided or benefits received from these funds.
49 Item 3A - Page 66
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1- Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of fiduciary net position and a statement of changes in fiduciary net position. The City's fiduciary fund represents private purpose trust fund. The private purpose trust fund are accounted for on the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived I) solely from the government's own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.

The City reports the following fiduciary fund type:

Successor Agency of the Former Redevelopment Agency Private Purpose Trust Fund - This fund is used to account for the assets and liabilities of the former redevelopment agency and receives allocated revenue until the obligations of the former redevelopment agency are paid in full and assets have been liquidated.

On December 29, 2011, the California Supreme Court upheld Assembly Bill IX 26 ("the Bill") that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Palm Springs that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local government. On January 4, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 23071.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In accordance with the Bill, all redevelopment agencies in California were dissolved and ceased to operate as of February I, 2012.

Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

C. Property Taxes
Under California law, property taxes are assessed and collected by the counties up to I% of assessed value, plus the increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas. City property tax revenues are recognized when levied on the government-wide statements, and to the extent that they result in current receivables within 60 days in the governmental funds financial statements. 50 Item 3A - Page 67
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1- Summary of Significant Accounting Policies (Continued) C. Property Taxes (Co11ti11ued)
The property tax calendar is as follows:

Lien Date:

Levy Date:

Due Date:

Delinquent Date:

January I
July I
November 1, February I
December 11, April 11
Taxes are collected by Riverside County and are remitted to the City periodically. Dates and percentages are as follows:

December 9-13
January 27-31
April 13-17
May25-29
August 3-7
D. Cash a11d Cash Equivale11ts
Advance No. I
Settlement No. I
Advance No. 2
Settlement No. 2
Settlement No. 3
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates and have an original maturity date of three months or less.

Cash equivalents represent the proprietary funds' share in the cash and investment pool of the City of Palm Springs.

E. J11vestme11ts
Investments are reported at fair value, except for certain certificates of deposit and investment agreements that are reported at amortized cost because they are not transferable, and they have terms that are not affected by changes in market interest rates. 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 or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agent. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments.

F. Prepaid Items a11d J11ve11tories
Inventories are stated at average cost. Physical counts of inventories are taken on a cyclical basis during each fiscal year with perpetual records adjusted to actual.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements by using purchase method.

A nonspendable fund balance has been reported in the governmental funds to show that inventories and prepaid items do not constitute "available spendable resources," even though they are a component of current assets. 51 Item 3A - Page 68
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1- Summary of Significant Accounting Policies (Continued) G. Lease Receivable
The City is a lessor for leases of land and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of$50,000 for lease receivables. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows ofresources are 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 inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (I) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. • The City uses the incremental borrowing rate (!BR) provided by the financial institution during implementation for existing leases or the current rate at the time a new lease is executed or modified. • The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
• 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.

H. La11d Held for Resale
Land held for resale represents land, structures, and their related improvements acquired for resale in accordance with the objective of the Redevelopment Project. Land held for resale is valued at the lower of cost or the estimated net realizable value determined at the date a disposition and development agreement is executed.

L Capital Assets
Capital assets (including infrastructure) greater than $5,000 are capitalized and recorded at cost or at the estimated fair value of the assets at the time of acquisition where complete historical records have not been maintained.

Contributed capital assets are valued at acquisition value at the date of the contribution. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Donated works of art and similar items, and capital assets received in a service concession arrangement are be reported at acquisition value.

Capital assets include property, plant, equipment, and infrastructure assets (roads, bridges, curbs and gutters, streets and sidewalks, medians, sewer and storm drains). Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the government-wide financial statements and in the fund financial statements of the proprietary funds.
52 Item 3A - Page 69
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1- Summary of Significant Accounting Policies (Continued) I. Capital Assets (Co11ti1111ed)
The intangible right-to-use asset includes lease asset and subscription-based information technology arrangements ("SBITA") asset ("subscription asset''). These intangible assets are recorded at the amount of the initial measurement of the lease liabilities or SBITA liabilities ("subscription liabilities") and adjusted by any lease made to the lessor or subscription payments to the SBIT A vendor at or before the commencement of the lease or subscription term, less any incentives received from the lessor or SBITA vendor at or before the commencement of the lease or subscription term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service or subscription implementation costs. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset. Subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying IT assets.

The following schedule summarizes capital asset useful lives:

Assets
Buildings and Improvements
Machinery, Furniture, and Equipment
Motor Vehicles
Meters, Metering Vaults,
and Subsurface Lines
Infrastructure:

Pavement
Curbs and Gutters
Sidewalks
Other
J. Deferred Outjlows/11iflows of Resources
Years
5 to 60
5 to 30
5 to 30
50 25
50 50
25 to 60
The statement of financial position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets that applies to future periods.

Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods.

K. Lease Liabilities
The City recognizes lease liabilities with an initial, individual value of $10,000 or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability.

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.
53 Item 3A - Page 70
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1- Summary of Significant Accounting Policies (Continued) K. Lease Liabilities (Continued)
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 any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

L. Subscription Based Information Technology Arrangements Liabilities The City recognizes subscription liabilities with an initial, individual value of $50,000 or more with a subscription term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the City, usage of the underlying IT assets, or number of user seats are not included in the measurement of the subscription liability.

At the commencement of a subscription, the City initially measures the subscription liability at the present value of subscription payments expected to be made during the subscription term. Subsequently, the lease liability is reduced by the principal portion of subscription payments made.

Key estimates and judgments related to subscription liabilities include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
• The City uses the interest rate charged by the SBIT A vendor 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 subscription liabilities.
• The subscription term includes the noncancellable period of the SBIT A. Subscription payments included in the measurement of the subscription liability are composed of fixed payments.

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

M. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows and inflows ofresources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. 54 Item 3A - Page 71
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1- Summary of Significant Accounting Policies (Continued) M. Net Pe11sio11 Liability (Co11ti11ued)
General Fund and special revenue funds are typically used to liquidate pension liabilities for governmental funds.

The following timeframes are used for pension reporting:

Valuation Date:

Measurement Date:

Measurement Period:

June 30. 2022
June 30, 2023
July I, 2022 to June 30, 2023
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows ofresources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

N. Other Postemploymellt Be11ejits Liability
For purposes of measuring the OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense, information about the City's OPEB plan 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:

Measurement Date:

Measurement Period:

June 30, 2022
June 30, 2023
July I, 2022 to June 30, 2023
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The gain or loss are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

O. Compe11sated Abse11ces
A liability is recorded for unused leave and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payment, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City. 55 Item 3A - Page 72
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1- Summary of Significant Accounting Policies (Continued)

0. Compe11sated Ahse11ces (Co11ti11ued)
Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee.

If material, a proprietary fund liability is accrued for all leave benefits relating to the operations of the proprietary funds. A current liability is accrued in the governmental funds for material leave benefits due on demand to governmental fund employees that have terminated prior to year-end.

All other amounts will be recorded in the government-wide financial statements. These noncurrent amounts will be recorded as fund expenditures in the year in which they paid or become due on demand to terminated employees.

P. Claims a11d Judgme11ts
The City records a liability to reflect an actuarial estimate uninsured loss for both general liability claims (including property damage claims) and workers' compensation claims. The estimated liability for workers' compensation claims and general liability claims includes "i11curred but 1101 reporter!' ("IBNR") claims. There is no fixed payment schedule to pay these liabilities. This liability is recorded in the internal service fund that accounts for the City's self-insurance activities.

Q. Net Positio11
In the government-wide financial statements and proprietary fund financial statements,.net position is classified as follows:

Net J11vestment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation, reduced by outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets, and related deferred outflows and inflows of resources, net of unspent debt proceeds.

Restricted - This component of net position consists of restricted assets reduced by liabilities and deferred inflows ofresources related to those assets.

Unrestricted - This component of net position is the net amount of the assets, deferred outflows ofresources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City's practice is to apply the restricted component of net position first, then use the unrestricted component of net position as needed.

R. F1111d Ba/a11ces
Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use ofresources for specific purposes as follows:

Nonspe11dable - amounts that cannot be spent because they are either (a) not spendable in form or (b) legally or contractually required to be maintained intact.
56 Item 3A - Page 73
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1- Summary of Significant Accounting Policies (Continued) R. Fund Balances (Continued)
Restricted - amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.

Committed - amounts that can only be used for specific purposes pursuant to formal action of City Council (highest level of decision-making authority) through ordinances as they constitute the most binding constraint.

These amounts cannot be used for any other purpose unless the City removes or changes the specified use by taking the same type of action ( city ordinance) it employed previously to commit those amounts. This action is taken by a vote of the Council which must be approved by a majority vote. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.

Assigned - amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed. The governing council has authorized the City Manager to assign fund balance. The council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally do not exist temporarily. In other words, an additional action does not normally have to be taken for the removal of the assignment. The authority for assigning fund balance is expressed by the city manager or the appointed designee based on the City's approved policies.

Unassigned - amounts include the residual amounts that have not been restricted, committed, or assigned to specific purposes. The General Fund is the only fund that should report this category offund balance, unless a negative fund balance exists.

An individual governmental fund may include non-spendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted or unrestricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.

When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City's practice is to apply restricted fund balances first, then use unrestricted fund balances as needed.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund balance:
committed, assigned, and unassigned.

S. Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions which affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
57 Item 3A - Page 74
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1- Summary of Significant Acconnting Policies (Continued) T. Implementation of New GASB Pronouncements
In June 2022, GASS issued Statement No. 100, Accounting Changes and Error Corrections - an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable infonnation for making decisions or assessing accountability. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Application of this statement did not have a significant effect on City's fiscal year ended June 30, 2024.

Note 2 - Cash and Investments
Cash and investments as of June 30, 2024, are classified in the accompanying financial statements as follows:

Fiduciary
Governmental Business-Type Fund Statement
Activities Activities ofNet Position Total
Unrestricted assets:

Cash and investments $ 350,816,324 $ 163,979,670 $ 433,575 $ 515,229,569 Restricted assets:
"' Cash and investments with fiscal agent 282,541 12,726,448 1,803,431 14,812,420 Total cash and innstments $ 351,098,865 $ 176,706,118 $ 2,237,006 $ 530,041,989 Cash and investments as of June 30, 2024, consist of the following:

Cash on hand $ 6,222
Deposits with fmancial institutions 32,031,340
Investments 498,004,427
Total cash and investments $ 530,041,989
The City follows the practice of pooling cash and investments of all funds except for funds required to be held by outside fiscal agent under the provisions of bond indentures.

Interest income earned on pooled cash and investments is allocated quarterly to the funds based on the month-end cash and investment balances. Proceeds obtained from long-tenn debt issuances including construction, lease payment and reserve fund balances are held by the City or by fiscal agent on behalf of the City and invested in the City's name.

Interest income on proceeds of debt is credited directly to the related fund, as defined by the Bond Indenture.

A. Deposits
At June 30, 2024, the carrying amount of the City's demand deposits was $32,031,340 the bank balance was $35,824,550. The difference represents outstanding checks, deposits in transit, and other reconciling items. 58 Item 3A - Page 75
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 2 - Cash and Investments (Continued)
A. Deposits (Continued)
Under provisions of the City's investment policy and in accordance with Section 53601 of the California Government Code, the City may invest in the types of investments listed in the table below. The table also identifies certain provisions intended to limit the City's exposure to interest rate risk, credit risk, and concentration of credit risk.
* Authorized Maximum
by lml!stment * Maximum Percentage
Authorized lm'Cstment Type Policy Maturity of Portfolio U.S. Treasury Obligations Yes 5 years
Local Agency Bonds Yes 5 years
Federal Agencies Yes 5 years
Bankers' Acceptances Yes 180 days
Commercial Paper Yes 270 days
Negotiable Certificates of Deposit Yes 5 years
Medium-term Corporate Notes Yes 5 years
Money Market Mutual Funds Yes 90 days**
Mutual Funds, investing in eligible securities Yes n/a
Non-negotiable Certificates of Deposit (Time Deposits) Yes 1 year Local Agency Investment Fund (LAIF) Yes n/a
• Based on state law requirements or investment policy requirements, whichever is more restrictive. **Money market funds are limited to a maximum dollar-weighted average maturity of90 days and each investment must have a remaining maturity of thirteen months or less at time of purchase. ***Maximum percentage of portfolio for less than one year is 50% and more than one year is 25%.

B. Investments Authorized by Debt Agreements
100%
15%
60%
20%
15%
30%
30%
20%
10%
10%
100%
Maximum
lmrestment in
One Issuer
None
5%
None
5%
5%
5%
5%
None
25% or 50%***
$500,000 per Issuer
None
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

Authorized Investment Type
U.S. Treasury Obli~tions
Local Agency Bonds
Federal Agencies
Bankers' Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Medium-term Corporate Notes
Money Market Mutual Funds
Mutual Funds, investing in eligible securities
Non-negotiable Certificates of Deposit (Time Deposits)
Local Agency Investment Fund (LAIF)
59 Maximum
Maturity
5 years
5 years
5 years
180 days
270 days
5 years
5 years
90 days
n/a
I year
n/a
Item 3A - Page 76
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 2 - Cash and Investments (Continued)
C. Disclosures Relating to Interest Rate Risk
D.

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short-term and long-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity. For purposes of the schedule shown below, any callable securities are assumed to be held to maturity.

Remaining Maturity
1 Year 1 Year to 3 Years to
Investment Type Total or Less 3 Years 5 Years
Local Agency Investment Fund $ 43,778,170 $ 43,778,170 $ $ CalTRUST Short Term Fund 26,446,659 26,446,659
U.S. Treasury Securities 167,420,441 18,694,515 71,407,539 77,318,387 U.S. Government Sponsored Enterprise Securities 130,958,152 29,444,913 34,608,759 66,904,480 Collaterized Mortgage Obligations 8,897,552 2,643,111 6,254,441 Corp orate Bonds 91,399,014 21,199,935 49,581,310 20,617,769 Asset-backed Securities 586,993 586,993
Supranational 12,179,220 7,409,815 4,769,405
Money Market Mutual Funds 1,525,806 1,525,806
Held by fiscal agent:

Money Market Mutual Funds 14,812,420 14,812,420
Total im:estments $ 498,004,427 $ 163,312,233 $ 163,597,117 $ 171,095,077 Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

Rating as of Year End
Investment Type Total AAA AA/A Not Rated
Local Agency Investment Fund $ 43,778,170 $ $ $ 43,778,170 CalTRUST Short Term Fuod 26,446,659 26,446,659
U.S. Treasury Securities 167,420,441 167,420,441
U.S. Government Sponsored Enterprise Securities 130,958,152 130,958,152 Collaterized Mort~ Obligations 8,897,552 8,897,552
Corporate Bonds 91,399,014 6,712,774 84,686,240
Asset-backed Securities 586,993 586,993
Supranational 12,179,220 12,179,220
Money Market Mutual Funds 1,525,806 1,525,806
Held by fiscal agent:

Money market funds 14,812,420 14,812,420
Total im,.estments $ 498,004,427 $ 343,093,358 $ 84,686,240 $ 70,224,829 60 Item 3A - Page 77
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended Jnne 30, 2024
Note 2 - Cash and Investments (Continued)
E. Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer ( other than U.S. Treasury securities, mutual funds, and external investments pools) that represent 5% or more of total City investments are as follows:

Issuer Investment Type
Reported
Amount Percent~
Federal Fann Credit Bank
Federal Home Loan Banks
F. Fair Value Hierarchy
U.S. Government Sponsored F.nterprise Securities
U.S. Government Sponsored Enterprise Securities
$ 66,822,617
58,945,282

13.83%

12.20%
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

Level I inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2024:

Measurement lnp ut
Quoted Prices in Significant Other
Active Markets Observable
for Identical Inputs
Investment Type Assets (Level 2) Total
U.S. Treasury Securities $ 167,420,441 $ $ 167,420,441
U.S. Government Sponsored Enterprise Securities 130,958,152 130,958,152 Collaterized Mort!!i'll" Oblig;rtions 8,897,552 8,897,552 Corp orate Bonds 91,399,014 91,399,014
Asset-backed Securities 586,993 586,993
Supranational 12,179,220 12,179,220
Total investments subject to fair \'3lue measure $ 167,420,441 $ 244,020,931 $ 411,441,372 Level I investments are valued using prices quoted in active markets. Level 2 investments are valued using quoted prices for similar assets in active markets based on matrix pricing.

G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession ofan outside party. The custodial credit risk fqr investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits. 61 Item 3A - Page 78
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 2 - Cash and Investments (Continued)
G. Custodial Credit Risk (Continued)
The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

For investments identified herein as held by bond trustee, the City's designee selects the investment under the terms of the applicable trust agreement, acquires the investment, and delivers to the Trustee the investment on behalf of the reporting government.

H. Investment in State Investment Pool
The City is a participant in the Local Agency Investment Fund ("LAIF") which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2024, the City had $43,778,170 invested in LAIF. The fair value of the City's position in the pool is the same as the value of the pool shares and reported at amortized cost which approximates fair value.

I. Ca/Trust Short Term Fund
The City is a participant in the Ca!Trust Short Term Fund under the provisions of California Government Code Section 6500 and 6509.7. As of June 30, 2024, the City had $26,446,959 invested in CalTrust Short Term Fund.

The fair value of the City's position in the pool is the same as the value of the pool shares and reported at amortized cost which approximates fair value.

Note 3 - Interfund Receivables, Payables and Transfers
A. Advances To/From Other Funds
The City has authorized interfund advances to be used for the operations of the funds receiving the advances. At June 30, 2024, the outstanding advances are:

Advances to Other Funds
Governmental Proprietary
Fund Fund
General Internal Service
Advances from Other Funds Fund Funds Total
Proprietary Fund:

Golf Course Enterprise Fund $ 1,210,000 $ 1,430,000 $ 2,640,000 (a) The Golf Course Fund initially received $2,000,000 from the General Fund payable at 6% over 20 years. The City has elected to not accrue any interest for the year ended June 30, 2024 and the Golf Course has not made any interest payment. At June 30, 2024, the outstanding balance is $1,210,000. (b) The Employee Benefits Internal Service Fund advanced $1,430,000 to the Golf Course Fund to provide funds for the operation and debt service of the Golf Course. There are no stipulated interest rates or repayment dates.
62 Item 3A - Page 79
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 3 - Interfund Receivables, Payables and Transfers (Continued) B. Transfers In/Transfers Out
The following schedule summarizes the City's transfer activity:

Transfers In
Governmental Funds Proprietary Fund
Measure J Nonmajor Golf Course
Capital Projects Cap ital Projects Governmental Enterprise Transfers Out Fund Fund Funds Fund
Governmental Funds:

General Fund $ $ 14,499,000 $ 8,422,822 $ 979,451
Measure J Capital Projects Fund 3,133,700
Capital Projects Fund 853,306
$ 853,306 $ 14,499,000 $ 11,556,522 $ 979,451
Total
$ 23,901,273
3,133,700
853,306
$ 27,888,279
General Fund transferred $14,499,000 to the Capital Projects Fund for Plaza Theatre, $8,422,822 to the Nonmajor Governmental Funds to cover operating expenditure and debt service-related costs, and $979,451 for the golf course subsidy.

Capital Projects Fund transferred $853,306 to Measure J Capital Projects Fund to fund capital improvements projects costs.

Measure J Capital Projects Fund $3,133,700 Nonmajor Governmental Funds (General Debt Service Fund) for debt service-related costs.

Note 4 - Notes and Loans Receivable
The following is a summary of notes and loans receivable as of June 30, 2024:

Note 5 - Lease Receivable
Economic Incentive
Hacienda Sunset (Coyote)
Santiago Sunrise Village
Vista Sunrise Apartments
Vista Sunrise Apartments II
Sahara Multiple Housing
Desert Highland
Monarch Apartments
Aloe Palm Canyon
Total notes and loans receivable
$ 174,167
1,586,261
256,608
1,662,629
3,854,489
240,000
1,600,000
2,666,400
7,304,034
$ 19,344,588
Lease receivables consist of agreements with others for the right-to-use of the underlying assets for land and buildings owned by the City at various locations. For the year ended June 30, 2024, the City recognized $1,238,479 in lease revenue and $303,718 in interest revenue. The outstanding receivables are in the amounts of $33,211,036. 63 Item 3A - Page 80
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended Jone 30, 2024
Note S - Lease Receivable (Continued)
Renaissance/Bureau oflndian Affairs
SENCA Palm Springs, Inc., a California Corporation, was the lessee under Business Lease No. PSL-315 and a letter dated May I, 1984, which are collectively referred to as the "Master Lease," which totaled 30.85 acres. Under this Master Lease, the Agua Caliente (Palm Springs) Reservation was the "lessor" while SENCA was the "lessee." On September 28, 1989, the City of Palm Springs entered into an agreement with SENCA to assume SENCA's lease.

The agreement provided for, among other things, the assignment by SEN CA to the City of all of SENCA's right, title and interest in and to the Master Lease and the three subleases in exchange for $3,000,000.

In addition, the City subleased to SEN CA the remainder of the Master Lease Property (the "New Sublease Property").

The swap saved the City hundreds of thousands of dollars per year in lease payments and allowed SENCA to not have to make any lease payments on the undeveloped portion ofland until it developed. The City assumed the responsibility of collecting the rent of the three remaining subleases: Wyndham Hotel, Convention Center and Voss Properties.

However, SENCA's interest in that sublease was eventually sold to Tom and Jacqueline Suitt. Until the site is developed, the rent was $1 per year, with a percentage lease calculated in the original 1989 lease amendment applied once the property developed. It was anticipated in the original (1984) and amended (1989) leases that the allottees would be entitled to rental income from the property once developed. Voss Properties eventually went into foreclosure, and the sublease was turned into a direct lease with the Bureau oflndian Affairs. The basic rent of$470,450 for the Renaissance Palm Springs Hotel, formerly the Wyndham Hotel has been adjusted by increases in the Consumer Price Index to $1,209,167.

Subsequently, the City pays the lessor in accordance with the Master Lease. Basic rent is adjusted every five years using the "Base Index" (Price Index of December 1984) issued by the Bureau of Labor Statistics of the United States Department of Labor. The current annual rent is $1,432,704. In April 2004, the City and the Indian allottees approved a Settlement Agreement and new lease amendment that changed how the overall lease was calculated. These actions were intended to settle potential litigation brought by the allottees against the City for an alleged underpayment of rent as it related to the calculation of the percentage rent. The 2004 amendment reduced or eliminated most or all of the rent percentages in favor of a higher Guaranteed Annual Rent (GAR) of $1,200,000 in 2004 and traded a substantial immediate increase in the GAR in return for receiving no additional rent from the Suitt parcel when it developed.

The pre-amendment rent for the whole 30 acres would have been about $900,000. Just as in the l 989 amendment, the rent should be adjusted in five years (2010) by CPI in an amount not to exceed 30%. Most importantly, the new lease requires a reappraisal of the property (as defined in Addendum 2 and referenced in Article 2 of the original and amended leases) in the year 2014, with the new GAR to be calculated at 8% of the new value.

In late 2004, Suitt entered negotiations with Enterprise California ("Enterprise") for Enterprise to acquire Suitt's position in the sublease and negotiate a new sublease with the City. Enterprise and Suitt then approached the City regarding a lease assumption. Suitt was not a party to any of the 2003-04 negotiations between the allottees and the City that resulted in the Master Lease amendment and their original negotiations with Enterprise were based on their understanding of the terms of the controlling Master Lease (essentially, the 1989 lease) and their sublease.

The City and PS Venture Caballeros/Amado, LLC (a partnership including Enterprise) entered into an Amended and Restated Sublease, dated February 9, 2006, where the City as the Master Lessee and sublandord subleased to PS Venture the Suitt portion of the Master Lease Property, specifically a 9.62-acre parcel of land ("Sublease Land") located at the southeast corner of Avenida Caballeros and Amado Road. Enterprise proposed to construct 234 mid-rise condominiums and town homes on the site and spent over $7,600,000 on acquisition of the lease and entitlement over the previous two years.
64 Item 3A - Page 81
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 5 - Lease Receivable (Continued)
Renaissance/Bureau oflndian Affairs (Continued)
At its June 27, 2007, meeting, the Former Community Redevelopment Agency of the City of Palm Springs approved acquiring the sublease of a 9.62-acre parcel for future development of public and/or private facilities and paid $7,804,000 for the parcel, which was the fair market value of the land. The transaction was finalized prior to the deadline of October 4, 2007, using 2007 Tax Allocation bonds. The Successor Agency now leases the parcel from the City of Palm Springs.

The remaining terms of these lease and sublease agreements are 37 years. The incremental borrowing rates used was

1.7050%.

Other Lease Receivables
The City entered into lease agreements granting the right to use of land for cell towers, right to use Palm Canyon Theatre, right to use Visitor Info Center, and right to use building at 211 S Palm Canyon Drive. The remaining terms of these agreements range from I to 4 years. The incremental borrowing rates used were from .2180% to 3.5110%.

Total future receipts for these leases, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 979,714 $ 566,745 $ 1,546,459
2026 936,039 550,757 1,486,796
2027 865,505 534,725 1,400,230
2028 799,010 519,333 1,318,343
2029 727,471 504,963 1,232,434
2030-2034 3,700,632 2,339,948 6,040,580
2035-2039 4,027,054 2,013,526 6,040,580
2040-2044 4,382,269 1,658,311 6,040,580
2045-2049 4,768,815 1,271,765 6,040,580
2050-2054 5,189,458 851,122 6,040,580
2055-2059 5,647,205 393,375 6,040,580
2060 1,187,864 20,253 1,208,117
Total $ 33,211,036 $ 11,224,823 $ 44,435,859
65 Item 3A - Page 82
Note 6 - Capital Assets
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
The following is a summary of capital assets activities for the governmental activities for the year ended June 30, 2024:

Ba1ance Balance
July I, 2023 Additions Deletions Reclassification June 30, 2024 Capital assets, not being depreciated:

Land $ 69,121,944 $ $ $ $ 69,121,944
Construction in progress 56,491,638 76,753,994 (29,847,439) IOJ,398,193 Rights of way 16,868,259 16,868,259
Total capital assets, not being depreciated 142,481,841 76,753,994 (29,847,439) 189,388,396 Capital assets, being depreciated:

Buildings 93,486,880 4,043,289 97,530,169
Improvements 91,081,918 642,315 (30,913) 12,849,845 104,543,165 Furniture and equipment 34,083,347 1,609,950 (753,877) 1,442,042 36,381,462 Vehicles 21,698,193 1,049,907 (305,935) 177,118 22,619,283 Infrastructure 270,974,714 11,335,145 282,309,859
Total capital assets, being depreciated 511,325,052 3,302,172 (1,090,725) 29,847,439 543,383,938 Less accumulated depreciation for:

Buildings (55,633,572) (2,503,708) (58,137,280)
Improvements (68,942,571) ( 4, I 85,588) 30,913 (73,097,246) Furniture and equipment (15,954,J 10) (1,822,390) 740,279 (17,036,421) Vehicles (13,689,608) (1,362,345) 281,791 (14,770,162)
Infrastructure (174,813,998) (5,710,080) (180,524,078)
Total accumulated depreciation (329,034,059) (15,584,111) 1,052,983 (343,565,187) Total capital assets, being
depreciated, net 182,290,993 (12,281,939) (37,742) 29,847,439 199,818,751 Intangible capital assets, being amortized:

Right-to-use lease assets - building 46,905,466 46,905,466 Right-to-use lease assets - equipment 320,596 320,596
Right-to-use lease assets - land 2,907,285 2,907,285
Right-to-use subscription assets 1,879,138 1,728,271 3,607,409 Total intangible capital assets, net 49,105,200 4,635,556 53,740,756 Less accumulated amortization for:

Right-to-use lease assets - building (2,436,647) (1,218,324) (3,654,971) Right-to-use lease assets - equipment (209,085) (111,511) (320,596) Right-to-use lease assets - land (64,722) (64,722)
Right-to-use subscription assets (625,776) (1,230,013) (I ,855, 789) Total accumulated amortizalion (3,271,508) (2,624,570) (5,896,078) Total intangible capital assets, being amortized, net 45,833,692 2,010,986 47,844,678 Total capital assets, net $370,606,526 $66,483,041 $ (37,742) $ $437,051,825 Depreciation and amortization expenses were charged in the following governmental activities in the Statement of Activities:

General government $ 3,720,062
Cultural and convention center 2,818,061
Public safety 1,455,786
Public works 6,992,161
Parks and recreation 1,027,688
Library 150,850
Internal Service Fund 2,044,073
Total $ 18,208,681
66 Item 3A - Page 83
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 6 - Capital Assets (Continued)
The following is a summary of capital assets activities for the business-type activities for the year ended June 30, 2024:

Balance Balance
July I, 2023 Additions Deletions Reclassification June 30, 2024 Capital assets, not being depreciated:

Land $ 37,387,081 $ $ $ $ 37,387,081
Construction in progress 51,642,893 23,508,577 (7,848,851) 67,302,619 Total capital assets, not being depreciated 89,029,974 23,508,577 (7,848,851) 104,689,700 Capital assets, being depreciated:

Buildingi 80,276,217 80,276,217
Improvements 210,914,072 109,896 7,207,428 218,231,396
Machinery and equipment 9,202,498 153,802 (17,163) 94,792 9,433,929 Motor vehicles 2,476,266 468,806 (136,582) 2,808,490
Subsurface lines 28,003,066 546,631 28,549,697
Total capital assets, being depreciated 330,872,119 732,504 (153,745) 7,848,851 339,299,729 less accumulated depreciation for:

Building; (48,778,945) (2,145,926) (50,924,871)
Improvements (181,042,744) (4,279,989) (185,322,733)
Machinery and equipment (4,487,754) (644,534) 13,800 (5,118,488) Motor vehicles (1,606,694) (205,622) 136,582 (1,675,734) Subsurface lines (24,273,052) (670,178) (24,943,230)
Total accumulated depreciation (260, I 89,189) (7,946,249) 150,382 (267,985,056) Total capital assets, being
depreciated, net 70,682,930 (7,213,745) (3,363) 7,848,851 71,314,673 Intangible capital assets, being amortized:

Right-to-use subscription assets 487,649 487,649
Total intangible capital assets, net 487,649 487,649
Less accumulated amortization for:

Right-to-use subscription assets (151,713) (162,550) (314,263) Total accumulated amortization (151,713) (162,550) (314,263) Total intangible capital assets, being amortized, net 335,936 (162,550) 173,386 Total capital assets, net $160,048,840 $ 16,132,282 $ (3,363) $ $176,177,759 Depreciation and amortization expense was charged in the following business-type activities of the primary government:

Airport $ 5,008,626
Wastewater 2,911,951
Golf course 188,222
Total $ 8,108,799
67 Item 3A - Page 84
Note 7 - Long-Term Debt
A. Gover11me11tal Activities
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
The following is a summary of changes in long-term debts for the governmental activities for the year ended June 30, 2024:

Balance Balance Due within Due in More
July I, 2023 Additions Deletions June 30, 2024 One Year Than One Year Gowmmcntal Acthities:

Direct Borrowing.:

Finance Purchase;
Fire Trucks s 3,259,595 $ $ (294,855) s 2,964,740 $ 302,379 s 2,662,361 2021 Fire Truck Lease 733,322 (86,358) 646,964 87,823 559,141 2021 Police Interceptor Vehicles 571,961 (191,107) 380,854 193,973 186,881 Notes Payable:

Cown Capital Refmance Agreement 13,927,385 (867,895) 13,059,490 935,195 12,124,295 Mesquite Loan 166,736 , (10,421) 156,315 10,421 145,894 Homeless Navig:ition Center 5,740,000 5,740,000 5,740,000 Public Borrowing.:

Bonds Payable, net:

Special Assessment Debt 3,490,000 (425,000) 3,065,000 435,000 2,630,000 2007 Pension Obligition Bonds 17,740,064 329,579 (1,050,000) 17,019,643 1,175,000 15,844,643 2015 Lease Revenue Refunding Bonds 3,190,000 (570,000) 2,620,000 590,000 2,030,000 2017 Lease Revenue Refunding Bonds 1,320,441 (313,094) 1,007,347 319,144 688,203 2021 Lease Revenue Refunding Bonds - Series A 30,220,000 (2,545,000) 27,675,000 2,560,000 25,115,000 2021 Lease Revenue Refunding Bonds - Series B 51,910,000 (3,605,000) 48,305,000 3,630,000 44,675,000 Unamortized Premiums/(Discounts):

Special Assessment Debt (29,842) 3,658 (26,184) (26,184) 2015 Lease Revenue Refunding Bonds 339,190 (83,856) 255,334 255,334 2017 Lease Revenue Refunding Bonds 121,353 (31,656) 89,697 89,697 Lease liabilities:

Equipment Lease 106,887 (106,887)
Renaissance/Bureau of Indian Affairs 44,775,664 (878,266) 43,897,398 893,241 43,004,157 Land Lease 2,907,285 (135,181) 2,772,104 23,936 2,748,168 Subscription liabilities 1,168,752 1,728,271 (1,263,425) 1,633,598 l,130,to6 503,492 Total G01:emmental Activities $178,751,508 $ 4,965,135 $ (12,454,343) SI 71,262,300 $12,286,218 S 158,976,082 Fire Trucks
In September 2017, the City acquired four fire trucks under a 15-year finance purchase agreement with PNC Equipment Finance, LLC for $3,270,628 with annual payments of $266,539 are due October of each year through 2031. In December 2019, the City acquired an additional two fire trucks with Banc of America Public Capital Corp for $1,376,623 with an annual payments ranging from $110,289 to $376,828. The outstanding balance at June 30, 2024, is $2,964,740.
68 Item 3A - Page 85
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Con tinned)
A. Governmental Activities (Continued)
Fire Trucks (Continued)
The future debt service payments as of June 30, 2024, are as follows:

Year Ending
June 30, Principal Interest
2025 $ 302,379 $ 74,449
2026 310,096 66,732
2027 318,010 58,818
2028 326,126 50,702
2029 334,449 42,379
2030-2034 1,264,677 86,384
' 2035 109,003 1,286
Total $ 2,964,740 $ 380,750
2021 Fire Trucks
Payments
$ 376,828
376,828
376,828
376,828
376,828
1,351,061
110,289
$ 3,345,490
In January 2021, the City acquired additional two fire trucks from Boise Mobile Equipment under a I 0-year finance purchase agreement with Capital One Public Funding, LLC for $90 I, 145 at a 1.69% annual interest rate with an annual payments of $98,387 commencing February I, 2022 through 2031. The outstanding balance at June 30, 2024, is $646,964.

The future debt service payments as of June 30, 2024, are as follows:

Year Ending
June 30, Principal Interest Payments
2025 $ 87,823 $ 10,564 $ 98,387
2026 89,314 9,073 98,387
2027 90,830 7,557 98,387
2028 92,371 6,016 98,387
2029 93,939 4,448 98,387
2030-2031 192,687 4,087 196,774
Total $ 646,964 $ 41,745 $ 688,709
2021 Police Interceptor Vehicles Capital Lease
In March 2021, the City entered into a five-year finance purchase agreement for the additional purchase of 19 Police vehicles from National Auto Fleet Group with Capital One Public Funding, LLC at a 1.5% annual interest rate with an annual payment of$199,686 due on March I of each year from 2022 through 2026. The outstanding balance at June 30, 2024, is $380,854.
69 Item 3A - Page 86
City of Palm Springs
Notes to the Basic Financial Statements (Continned)
For the Year Ended Jnne 30, 2024
Note 7 - Long-Term Debt (Continued)
A. Gover11me11tal Activities (Co11ti11ued)
The future debt service payments as of June 30, 2024, are as follows:

Year Ending
June 30, Principal Interest Payments
2025 $ 193,973 $ 5,713 $ 199,686
2026 186,881 2,803 189,684
Subtotal $ 380,854 $ 8,516 $ 389,370
Cogen Capital Refinancing Agreement
On December I, 2020, the City entered into a refinancing agreement with the City of Palm Springs Financing Authority (the "Authority) in the amount of $15,854,440. The refinancing agreement is comprised of an equipment lease in the amount of$4,415,162 maturing May I, 2029 bearing an interest at 2.25% and a project lease amounting to $11,439,278 maturing August I, 2033 bearing interest at 3 .05%. The refinancing agreement was assigned by the Authority to Capital One Public Funding, LLC and was entered into to refinance the note payable entered into in 2013 to energy conservation measures. The outstanding balance of refinancing agreement at June 30, 2024 is $13,059,490.

The future debt service payments as of June 30, 2024, are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 935,195 $ 366,192 $ 1,301,387
2026 1,006,982 340,990 1,347,972
2027 1,084,147 313,799 1,397,946
2028 1,165,173 284,487 1,449,660
2029 1,250,608 252,945 1,503,553
2030-2034 7,617,385 623,589 8,240,974
Subtotal $ 13,059,490 $ 2,182,002 $ 15,241,492
Mesquite Loan
The Coachella Valley Association of Governments (the "CVAG") Executive Committee, on December 1, 2003, approved the City of Palm Springs' request to reimburse CVAG, a total of $364,744 by means of annual payments for the Mid Valley Parkway project improvement. Annual payments of$ I 0,421 are required beginning July I, 2004 with final payment due on July I, 2039. The City is to pay back the reimbursement from funds received from the future development of the properties adjacent to the improved Dinah Shore/Mid Valley Parkway. No interest is required to accrue on the outstanding balance.
70 Item 3A - Page 87
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7-Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Mesquite Loan (Continued)
Annual debt service payments remaining as of June 30, 2024, are as follows:

Year Ending
June 30, Principal
2025 $ 10,421
2026 10,421
2027 10,421
2028 10,421
2029 10,421
2030-2034 52,105
2035-2039 52,105
Total $ 156,315
Homeless Naviga !ion Center Loan
On January 28, 2022, the City entered into a loan agreement with the County of Riverside ("County") for the use of American Rescue Plan Act ("ARPA") funds. The agreement provides zero-percent interest financing up to $5,740,000 for the purchase ofland for the City's Homeless Navigation Center of which the entire amount maybe forgiven after the end July I, 2077 if the City is in compliance with the ARP A loan agreement. The balance outstanding as of June 30, 2024 was $5,740,000.

The County may determine the loan to be breached and the City to be in default if the City (I) fails to pay when due any sums payable or any advances made by County, (2) uses the loan for costs other than those costs permitted, (3) fails to make any other payment of any assessment or tax due, (4) discriminates on the basis of characteristics prohibited by the agreement or applicable law. Following a breach, the County shall have the right to declare the entire balance of the loan obligation due and payable.

Special Assessment Debt with Government Commitment
At June 30, 2024, the City of Palm Springs has one outstanding Assessment District (A.O.) Improvement Refunding Bond ("Bonds") originally issued in the amount of$6,645,000 pursuant to the Improvement Bond Act of 1915. The proceeds of the Bond were used to refund outstanding obligations of the City of Palm Springs with respect to its Assessment District No. 161, Assessment District No. 162, and Assessment District No 164, to pay costs related to the issuance of the bonds and make a deposit to a reserve fund for the Bonds. The $6,645,000 bonds were issued April I, 2015, maturing between September 2, 2016 and September 2, 2030 in amounts ranging from $210,000 through $520,000. Bonds maturing on any September 2 may be redeemed prior to its fixed maturity date, at the option of the City, at rates ranging from 100% to 103% of the principal amount. The balance of this bond at June 30, 2024 is $3,065,000 with an unamortized discount of$(26,184). 71 Item 3A - Page 88
City of Palm Springs
Notes to the Basic Financial Statements (Con tinned)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Continued)
A. Govemmental Activities (Continued)
Special Assessment Debt with Government Commitment (Continued) Annual requirements to amortize outstanding special assessment debt as of June 30, 2024, are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 435,000 $ 95,641 $ 530,641
2026 450,000 81,813 531,813
2027 470,000 67,144 537,144
2028 485,000 51,322 536,322
2029 495,000 34,475 529,475
2030-2031 730,000 20,519 750,519
Total $ 3,065,000 $ 350.914 $ 3,415,914
The outstanding bonds do not contain a provision allowing for the acceleration of the Bonds in the event of a payment default or other default under the terms of the Bonds or the Fiscal Agent Agreement. 2007 Taxable Pension Obligation Bonds
On April I, 2007, the City of Palm Springs pursuant to an Agreement with the California Statewide Communities Development Authority issued $19,832,588 of Pension Obligation Bonds. The aggregate total amount of the bonds for all agencies was $87,475,699 which includes $65,140,000 of Series A-1 current interest and $22,335,699 of Series A-2 capital appreciation bonds. The is~uance of the bonds provided monies to meet the City's obligation to pay the City's unfunded accrued actuarial liability ("UAAL") to the California Public Employees Retirement System ("Ca!PERS"). The City's obligation includes the requirement to amortize the unfunded accrued liability over a multi-year period. On April I, 2007, the City contributed $19,382,434 of the bond proceeds to PERS to fund a portion of the unfunded liability for the Miscellaneous and Safety Plans that provides retirement benefits to the City employees and public safety officers.

Interest on Series A-1 Current Interest Bonds of$ 14,790,000, is payable on June I and December I, commencing December I, 2007. The rate of interest varies from 5.37% to 5.56% per annum. Principal is payable in annual installments ranging from $605,000 to $2,430,000 commencing on June I, 2019 and ending on June I, 2035.

Optional Redemption: The Series A-1 Current Interest Bonds maturing on or before June I, 2017 will not be subject to optional redemption. The bonds maturing on June 2, 2021, June I, 2026 and June I, 2035, are subject to optional redemption prior to maturity at the option of the Authority, or in part on any date at a redemption price equal to the greater of(!) 100% of principal to be redeemed or (2) present value of the remaining debt service discounted at Treasury Rate plus 12.5 basis points, plus accrued and unpaid interest on the Redeemable Term Bonds being redeemed to the date fixed for redemption.

The A-2 Capital Appreciation Bonds bear interest ranges from 5. 16% to 5.69% and are payable only at maturity.

The accreted value of each capital appreciation bond is equal to its accreted value upon the maturity thereof, being comprised ofits initial purchase price and the accreted interest between the delivery data and its respective maturity date. The capital appreciation bonds are not subject to redemption prior to maturity. 72 Item 3A - Page 89
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2007 Taxable Pension Obligation Bonds (Continued)
The balance outstanding as of June 30, 2024 was $17,019,643. Future debt service requirements on the Bonds are as follows:

A-1 A-2
Year Ending Accreted
June 30, Principal Interest Principal Interest Interest Total 2025 $ 1,175,000 $ 607,816 $ $ $ $ 1,782,816
2026 1,305,000 543,379 1,848,379
2027 471,812 470,351 761,390 979,649 2,683,202
2028 471,812 465,272 755,204 1,054,728 2,747,016
2029 471,812 461,609 749,280 1,133,391 2,816,092
2030-2034 6,065,000 2,043,317 906,363 1,475,174 2,508,637 12,998,491 2035 2,430,000 134,962 2,564,962
Total $ 10,975,000 $ 4,744,910 $ 2,303,595 $ 3,741,048 $ 5,676,405 $ 27,440,958 2015 Lease Revenue Refunding Bonds
On December I, 2015, the City of Palm Springs Public Financing Authority issued $5,680,000 Lease Revenue Refunding Bonds. The proceeds from the issuance were used to refund the 2002A Certificates of Participation, which were used to fund capital projects related to the downtown parking structure. Interest on the bonds range between 2.0% to 5.0% and the final maturity date is November I, 2027.

The total bonds outstanding at June 30, 2024, is $2,620,000 including $255,334 of unamortized premium. Future debt service requirements on the bonds are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 590,000 $ 116,250 $ 706,250
2026 630,000 85,750 715,750
2027 690,000 52,750 742,750
2028 710,000 17,750 727,750
Total $ 2,620,000 $ 272,500 $ 2,892,500
The outstanding bonds contain a provision that if any event of default should occur, the Trustee, as assignee of the Authority, may elect not to terminate the lease agreement and may re-enter and re-let the leased property and may enforce the lease agreement and hold the City liable for all lease payments on an annual basis while re-entering and reletting the leased property. Alternatively, the Trustee may elect to terminate the lease agreement and may re-enter and re-let the leased property and seek to recover all costs, losses or damages caused by the City's default. 73 Item 3A - Page 90
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2017 Lease Revenue Refunding Bonds
On June 13, 2017, the Authority issued $9,970,000 Lease Revenue Refunding Bonds, Series 2017 to defease the outstanding balance of the Refunding Lease Revenue Bonds, Series 2007. The Lease Revenue Refunding Bonds, Series 2017 accrues interest payable semiannually on November I and May 1 of each year at rates between 2.00% and 4.00%. Principal is due annually on May 1 of each year ranging from $895,000 to $1,160,000 and the final maturity date is May 1, 2027.

The refunding was for the police building project and cogeneration plant governmental activities and the golf course business-type activities as following:

Governmental Activities:

Police building project $ 1,120,195
Cogeneration p !ant fund 1,895,795
Total governmental activities portion 3,015,990
Business-Type Activities:

Golf Course Fund 6,954,010
Total governmental activities portion 6,954,010
$ 9,970,000
The total outstanding balance on the 2017 Lease Revenue Refunding Bonds was $3,330,000 as of June 30, 2024.

The annual debt service requirement to maturity are as follows:

Governmental Activities Business-t}'.Ee Activities Total Year Ending
June 30, Princieal Interest PrincieaI Interest Princi~ Interest Total 2025 $ 319,144 $ 43,485 $ 735,856 $ 100,265 $ 1,055,000 $ 143,750 $ 1,198,750 2026 337,295 27,528 777,705 63,472 1,115,000 91,000 1,206,000 2027 350,908 14,036 809,092 32,364 1,160,000 46,400 1,206,400 Total $ 1,007,347 $ 85,049 $ 2,322,653 $ 196,101 $ 3,330,000 $ 281,150 $ 3,611,150 Unamortized
premium $ 89,697 $ 209,292 $ 298,989
The outstanding bonds contain a provision that if any event of default should occur, the Trustee, as assignee of the Authority, may elect not to terminate the lease agreement and may re-enter and re-let the leased property and may enforce the lease agreement and hold the City liable for all lease payments on an annual basis while re-entering and reletting the Leased Property. Alternatively, the Trustee may elect to terminate the lease agreement and may re enter and re-let the leased property and seek to recover all costs, losses or damages caused by the City's default. 74 Item 3A - Page 91
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2021 Lease Revenue Refunding Bonds, Series A
On April 28, 2021, the Authority issued 2021 Federally Taxable Lease Revenue Refunding Bonds, Series A in the amount of $33,495,000. The proceeds from the issuance were used to refinance the outstanding 2012 Lease Revenue Refunding Bonds, Series B.

Interest on the bonds is payable semiannually on June I and December I of each year commencing on December I, 2021, and the Bonds mature on June I, 2034. The principal balance of the outstanding bonds at June 30, 2024 was $27,675,000.

The outstanding bonds contain a provision that if any event of default should occur, the Trustee, as assignee of the Authority, shall have the option (i) without terminating the lease agreement, to collect each installment ofrent as it become due regardless of whether or not the City has abandoned the leased property, or to exercise any rights of re-entry upon and to release the leased property, or (ii) to terminate the lease agreement and release the leased property. The City remains liable, if the leased property is not re let, to pay the full amount of the rent to the end of the term of the lease agreement or, if the leased property is relet, to pay any deficiency in rent that results therefrom.

In the event of any default, there is no available remedy of acceleration of lease payments which have not become due and payable under lease agreement. The City will only by liable for lease payments on an annual basis, and the Trustee may be required to seek a separate judgment in each fiscal year for the fiscal year's defaulted lease payments. In the event the Trustee elects to terminate the lease agreement, such leased property may be relet for the remaining term of the lease agreement.

The annual debt service requirements to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 2,560,000 $ 573,198 $ 3,133,198
2026 2,590,000 545,806 3,135,806
2027 2,625,000 512,913 3,137,913
2028 2,665,000 470,650 3,135,650
2029 2,715,000 421,881 3,136,881
2030-2034 14,520,000 1,156,257 15,676,257
Total $27,675,000 $ 3,680,705 $ 31,355,705
75 Item 3A - Page 92
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2021 Lease Revenue Refunding Bonds, Series B
On October 14, 2021, the Authority issued 2021 Federally Taxable Lease Revenue Refunding Bonds, Series B, in the amount of $55,500,000. The proceeds from the issuance were used to advance refund the outstanding 2012 Lease Revenue Bonds, Series A, and 2014 Lease Revenue Refunding Bond, Series A.

Interest on the bonds is payable semiannually on May l and November l of each year commencing on May 1, 2022, and the Bonds mature on November I, 2035. The principal balance of the outstanding bonds at June 30, 2024 was $48,305,000.

The 2012 Lease Revenue Bonds was fully redeemed on September 16, 2022. As of June 30, 2024, 2014 Lease Revenue Refunding Bonds, Series A, had outstanding balance in the amount of$39,075,000.

The outstanding bonds contain a provision that if any event of default should occur, the Trustee, as assignee of the Authority, shall have the option (i) without terminating the lease agreement, to collect each installment ofrent as it become due regardless of whether or not the City has abandoned the leased property, or to exercise any rights of re-entry upon and to release the leased property, or (ii) to terminate the lease agreement and release the leased property. The City remains liable , if the leased property is not relet, to pay the full amount of the rent to the end of the term of the lease agreement or, if the leased property is relet, to pay any deficiency in rent that results therefrom.

The annual debt service requirements to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 3,630,000 $ 1,033,413 $ 4,663,413
2026 3,665,000 995,964 4,660,964
2027 3,720,000 948,410 4,668,410
2028 3,775,000 889,415 4,664,415
2029 3,845,000 819,123 4,664,123
2030-2034 20,610,000 2,728,350 23,338,350
2035-2036 9,060,000 268,689 9,328,689
Total $ 48,305,000 $ 7,683,364 $ 55,988,364
Equipment Lease
On July I, 2021, the City entered into a 36 month lease as Lessee for the use of Xerox equipment. An initial lease liability was recorded in the amount of$33 l ,736. The City is required to make annual fixed payments of$107,224.

The lease has an interest rate of .3150%. The equipment's estimated useful life was O months as of the contract commencement. As of June 30, 2024, the value of the lease liability was fully paid. 76 Item 3A - Page 93
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Continued)
A. Governme11tal Activities (Co11ti11ued)
Master Lease - Renaissance/Bnreau of Indian Affairs
On July I, 2021, the City entered into a 462 month lease as Lessee for the use of Master Lease Renaissance/Bureau oflndian Affairs. An initial lease liability was recorded in the amount of$46,905,466. The City is required to make annual variable principal and interest payments of$1,641,692 based on a CPI index of0.00%. As of June 30, 2024, the value of the lease liability is $43,897,398. The lease has an interest rate of 1.7050%. The value of the right to use asset as of June 30, 2024 of $46,905,466 with accumulated amortization of $3,654,971 is included on the governmental activities intangible lease assets.

Principal and interest payments to maturity at June 30, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 893,241 $ 748,451 $ 1,641,692
2026 908,471 733,221 1,641,692
2027 923,960 717,731 1,641,691
2028 939,714 701,978 1,641,692
2029 955,736 685,956 1,641,692
2030-2034 5,028,736 3,179,721 8,208,457
2035-2039 5,472,306 2,736,152 8,208,458
2040-2044 5,955,002 2,253,456 8,208,458
2045-2049 6,480,275 1,728,183 8,208,458
2050-2054 7,051,881 1,156,577 8,208,458
2055-2059 7,673,906 534,552 8,208,458
2060 1,614,170 27,522 1,641,692
Total $ 43,897,398 $ 15,203,500 $ 59,100,898
Land Lease
On July I, 2023, the City entered into a 539 month lease as Lessee for the use of Conv Center - United Condominiums Corp PSL-236. An initial lease liability was recorded in the amount of $2,907,285. As of June 30, 2024, the value of the lease liability is $2,772,104. The City is required to make annual variable principal and interest payments of $135,181 based on a CPI index of0.00%. The lease has an interest rate of 4.0130%. The Land estimated useful life was O months as of the contract commencement. The value of the right to use asset as of June 30, 2024 of$2,907,285 with accumulated amortization of$64,722 is included on the governmental activities intangible lease assets.
77 Item 3A - Page 94
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Continued)
A. Governme11tal Activities (Co11ti11ued)
Principal and interest payments to maturity at June 30, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 23,936 $ 111,245 $ 135,181
2026 24,897 110,284 135,181
2027 25,896 109,285 135,181
2028 26,935 108,246 135,181
2029 28,016 107,165 135,181
2030-2034 157,876 518,029 675,905
2035-2039 192,200 483,705 675;905
2040-2044 233,987 441,918 675,905
2045-2049 284,859 391,046 675,905
2050-2054 346,791 329,114 675,905
2055-2059 422,188 253,717 675,905
2060-2064 513,978 161,927 675,905
2065-2068 490,545 50,181 540,726
Total $ 2,772,104 $ 3,175,862 $ 5,947,966
Subscription Liability
The City has entered into subscriptions for infonnation technology arrangements. The tenns of the arrangements ranges from 24 to 60 months with implicit interest rate ranges from 2.4700% to 3.7420%. Principal and interest to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 1,130,106 $ 43,227 $ 1,173,333
2026 360,115 14,302 374,417
2027 69,896 3,951 73,847
2028 74,107 2,025 76,132
Total $ 1,634,224 $ 63,505 $ 1,697,729
78 Item 3A - Page 95
City of Palm Springs
Notes to the Basic Financial Statements (Continned)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Continued)
B. Busi11ess-Type Activities
Summary of changes in long-term debts for the year ended June 30, 2024 for the business-type activities are as follows:

Balance Balance Due within Due in More
July 1, 2023 Additions Deletions Juue 30, 2024 One Year Than One Year Business-type Acti,ities:

Direct Borrowings:

State Water Resource Control Board $23,259,941 $ $ (718,882) $22,541,059 $ 731,104 $21,809,955 Yamaha golf leases 3,449 (3,449)
Public Offerings:
2019 Airport Passenger Facility Charge
Revenue Bonds 16,140,000 (1,690,000) 14,450,000 1,775,000 12,675,000 Unamortized premiums 2,243,504 (277,546) 1,965,958 1,965,958 Airport Revenue Bonds, net 18,383,504 (1,967,546) 16,415,958 1,775,000 14,640,958 2017 Lease Revenue Refunding Bonds 3,044,559 (721,906) 2,322,653 735,856 1,586,797 Unamortized premium 283,159 (73,867) 209,292 209,292
Lease Revenue Bonds, net 3,327,718 (795,773) 2,531,945 735,856 1,796,089 Subscription liability 75,420 (37,302) 38,118 38,118
Total business-type activities $45,050,032 $ $ (3,522,952) $41,527,080 $ 3,280,078 $38,247,002 State Water Resources Control Board
The City entered in a $29,917,266 installment sale agreement with the California State Water Resources Control Board to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to the City's wastewater system, including certain treatment facilities, pipelines and other infrastructure. The term of the loan is 30 years with an annual interest rate of I. 70%. Annual payments of $1,114,302 are due starting September 2019 through 2048. The outstanding balance at June 30, 2024, is $22,541,059.

Annual requirements to amortize outstanding loans payable as of June 30, 2024, is as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 731,104 $ 383,198 $ 1,114,302
2026 743,532 370,769 1,114,301
2027 756,172 358,129 1,114,301
2028 769,027 345,274 1,114,301
2029 782,101 332,201 1,114,302
2030-2034 4,114,519 1,456,990 5,571,509
2035-2039 4,476,347 1,095,161 5,571,508
2040-2044 4,869,995 701,513 5,571,508
2045-2049 5,298,262 273,248 5,571,510
Total $22,541,059 $ 5,316,483 $27,857,542
79 Item 3A - Page 96
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Con tinned)
B. Business-Type Activities (Continued)
Yamaha Golf Lease
The City executed a finance purchase agreement on August 29, 3019 for leasing of golf carts and equipment for Tahquitz Creek Golf Resort. The lease term is for 48 months and payment commenced on November I, 2019.

Interest factor is 4.2%. At June 30, 2024, the outstanding balance was fully paid. 2019 Airport Passenger Facility Charge Revenue Bonds
On July 18, 2019, the City of Palm Springs issued 2019 Airport Passenger Facility Charge Revenue Bonds for $22,270,000 to finance a portion of the design, acquisition, and construction of ticketing hall and baggage handling system improvements at the Palm Springs International Airport. Interest is payable semiannually on June I, and December I of each year, commencing December I, 2019, until maturity or earlier redemption. Interest rate is 5% and net original issue premium is $3,330,563. The principal balance outstanding and unamortized premium as of June 30, 2024 are $14,450,000 and $1,965,958, respectively.

Future debt service payments for the 2019 Airport Passenger Facility Charge Revenue Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 1,775,000 $ 722,500 $ 2,497,500
2026 1,865,000 633,750 2,498,750
2027 1,955,000 540,500 2,495,500
2028 2,055,000 442,750 2,497,750
2029 2,155,000 340,000 2,495,000
2030-2031 4,645,000 351,250 4,996,250
Total $14,450,000 $ 3,030,750 $17,480,750
Pledged Revenues
The PFC Bonds are payable from the revenues pledged under the Indenture consisting primarily of Passenger Facilities Charges ("PFC Revenues") imposed by the City under the authority of its Federal Aviation Act and regulation. As ofJune 30, 2024, principal and interest remaining on the PFC bonds was $17,480,750. For the current year, principal and interest paid and total PFC revenues were $2,497,000 and $6,143,087, respectively. 2017 Lease Revenue Refunding Bonds
The activities associated with the police building project and cogeneration plant are governmental activities and the activities of the golf course are business-type activities. Refer to Long Term Debt Governmental Activities 2017 Lease Revenue Refunding Bonds for full description of the bond on page 74. 80 Item 3A - Page 97
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Con tinned)
B. Busi11ess-Type Activities (Co11ti11ued)
Subscription Liability
The City has entered into a subscription for infonnation technology arrangement. The tenn of the arrangement is 36 months with implicit interest rate of 2.1840%. Principal and interest to maturity are as follows:

C. Fiduciary Activities
Year Ending
June 30,
2025
Principal Interest Total
$ 38,118 ~$'===8=32= $ 38,950
Summary of changes in long-tenn liabilities for the year ended June 30, 2024 for the fiduciary activities are as follows:

BaJance BaJance Due within Due in More
July I, 2023 Additions Deletions June 30, 2024 One Year Than One Year Fiduciary Activities:

Tax Allocation Bonds:
2007 Tax Allocation Bonds, Series B $ 1,480,000 $ $ (85,000) $ 1,395,000 $ 90,000 $ 1,305,000 2014 Tax Allocation Bonds 7,615,000 (910,000) 6,705,000 475,000 6,230,000 201 ?A Tax Allocation Refunding Parity Bonds 10,045,000 (100,000) 9,945,000 555,000 9,390,000 20178 Tax Allocation Refunding Parity Bonds 4,240,000 (300,000) 3,940,000 305,000 3,635,000 Unamortized Premiums/(Discounts):
2014 Tax Allocation Bonds l, 185,086 (98,750) 1,086,336 1,086,336 2017A Tax Allocation Refunding Parity Bonds 1,025,144 (85,430) 939,714 939,714 20178 Tax Allocation Refunding Parity Bonds (73,495) 10,498 (62,997) (62,997) Tax Allocation Bonds, net 25,516,735 (1,568,682) 23,948,053 1,425,000 22,523,053 Total fiduciary activities $25,5 l 6,735 $ $ (1,568,682) $23,948,053 $ 1,425,000 $22,523,053 2007 Tax Allocation Bonds Series A, B, C
On September 7, 2007, the fonner Community Redevelopment Agency issued $12,770,000 TAB Series A, $1,910,000 TAB Series 8, and $6,495,000 Series C. The Bonds were issued to finance redevelopment activities of the Agency within, or of benefit to, the Agency's Merged Project Area No. 1, capitalize interest in the Series A Bonds, satisfy a portion of the reserve requirement for the Bonds, and provide for the costs of issuing the Bonds.

The Series A Bonds consist of$2,715,000 of serial bonds and $10,055,000 oftenn bonds. The serial bonds accrue interest at rates between 4.00% and 4.50% and mature between September I, 2018 and September 1, 2025 in amounts ranging from $150,000 to $615,000. The first portion of the tenn bonds with principal of $5,000,000 accrues interest at a rate of 5.00% and matures on September 1, 2030. The second portion of the tenn bonds with principal of $5,055,000 accrues interest at a rate of 5.00% and matures on September l, 2034. These bonds were fully refunded with the issuance of the 2017 A Tax Allocation Refunding Parity Bonds. 81 Item 3A - Page 98
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Continued)
C. Fiduciary Activities (Continued)
2007 Tax Allocation Bonds Series A, B, C (Continued)
The Series B Bonds consist of$1,910,000 in term bonds. The first portion of the term bonds with principal of $1,910,000 accrues interest at a rate of6.141% and matures on September I, 2034. The series B Bonds were partially refunded with the issuance of2017 A TAB.

The Series C Bonds consist of $6,495,000 in term bonds. The term bonds with principal of $1,140,000 accrues interest at a rate of 5.59% and matures on September I, 2017. The second portion of the term bonds with principal of $5,355,000 accrues interest at a rate of 6.411% and matures on September I, 2034. These bonds were fully refunded during the current year with the issuance of the 2017 B Taxable Tax Allocation Refunding Parity Bonds.

The remaining Series B Bonds are subjected to redemption, in part by lot, on September I in each year, from sinking account payments made by the Agency pursuant to the Indenture, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium, or in lieu thereof shall be purchased pursuant to the Indenture.

The balance outstanding on the 2007 Tax Allocation Bonds, Series B, as of June 30, 2024, is $1,395,000. Future requirements to amortize are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 90,000 $ 82,904 $ 172,904
2026 100,000 77,070 177,070
2027 105,000 70,775 175,775
2028 110,000 64,173 174,173
2029 115,000 57,265 172,265
2030-2035 875,000 171,180 1,046,180
Total $ 1,395,000 $ 523,367 $ 1,918,367
The outstanding bonds contain a provision that if any event of default should occur, or continuing to occur, the Trustee may and, if requested in writing by the majority in aggregate principal amount of the Bonds at the time outstanding, shall (a) declare the principal of all the Bonds and the interest accrued thereon, to be due and payable immediately, will become immediately due and payable, anything in the Indenture or in the Bonds to the contrary notwithstanding, and (b) exercise any other remedies available to the Trustee and the Owners in law or at equity. 2014 Subordinate Tax Allocation Refunding Bonds
On July 22, 2014, the Successor Agency to the Palm Springs Community Redevelopment Agency issued $15,635,000 Subordinate Tax Allocation Refunding Bonds. The proceeds from the issuance were used to refund the 2001 and 2004 Series A and B Housing Tax Allocation Bonds. Interest on the bonds range between 3.0% and

5.0% and the final maturity date is August I, 2034.

The total bond balance outstanding at June 30, 2024, is $6,705,000 including $1,086,336 of unamortized premium. 82 Item 3A - Page 99
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 - Long-Term Debt (Con tinned)
C Fiduciary Activities (Co11ti11ued)
2014 Subordinate Tax Allocation Refunding Bonds (Continued) Future debt service requirements are as follows:

Year Ending
June 30, Principal Interest
2025 $ 475,000 $ 323,375
2026 495,000 299,125
2027 520,000 273,750
2028 545,000 247,125
2029 575,000 219,125
2030-2035 4,095,000 644,375
Total $ 6,705,000 $ 2,006,875
Total
$ 798,375
794,125
793,750
792,125
794,125
4,739,375
$ 8,711,875
The outstanding bonds contain a provision that if any event of default should occur, or during the continuance of such an event, the Trustee may and, if requested by the Owners of a majority in aggregate principal amount of the Bonds at the time outstanding, the Trustee shall, (a) declare the principal of all the Bonds and the interest accrued thereon, to be due and payable immediately, will become immediately due and payable, anything in the Indenture or in the Bonds to the contrary notwithstanding, and (b) exercise any other remedies available to the Trustee and the Owners in law or at equity.
2017A and B Tax Allocation Refunding Parity Bonds
On October 26, 2017, the Successor Agency to the Palm Springs Community Redevelopment Agency issued $11,345,000 Tax Allocation Refunding Parity Bonds. The proceeds from the issuance were used to refund the 2007 Series A and B Housing Tax Allocation Bonds. Interest on the bonds range between 0.930% and 3.260% and the final maturity date is September 1, 2034.

The total bond balance outstanding at June 30, 2024, is $9,945,000 including $939,714 of unamortized premium. Future debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 555,000 $ 410,575 $ 965,575
2026 90,000 . 395,350 485,350
2027 840,000 373,000 1,213,000
2028 885,000 329,875 1,214,875
2029 930,000 284,500 1,214,500
2030-2035 6,645,000 718,825 7,363,825
Total $ 9,945,000 $ 2,512,125 $12,457,125
On October 26, 2017, the Successor Agency to the Palm Springs Community Redevelopment Agency issued $5,680,000 Taxable Tax Allocation Refunding Parity Bonds. The proceeds from the issuance were used to current refund the 2007 Series C Housing Tax Allocation Bonds. Interest on the bonds range between 1.50% and 3 .55% and the final maturity date is September 1, 2029.
83 Item 3A - Page 100
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Euded June 30, 2024
Note 7 - Long-Term Debt (Continued)
C Fiduciary Activities (Continued)
2017A and B Tax Allocation Refunding Parity Bonds (Continued) The total bond balance outstanding at June 30, 2024, is $3,940,000 including $62,997 of unamortized discount.

Future debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 305,000 $ 125,225 $ 430,225
2026 310,000 116,381 426,381
2027 325,000 106,856 431,856
2028 335,000 96,747 431,747
2029 345,000 85,906 430,906
2030-2035 2,320,000 250,325 2,570,325
Total $ 3,940,000 $ 781,440 $ 4,721,440
The outstanding Series A and B bonds contain a provision that if any event of default should occur, or during the continuance of such an event, the Trustee may, and if requested by the Owners of a majority in aggregate principal amount of the Bonds at the lime outstanding, the Trustee shall, (a) declare the principal of all of the Bonds, and the interest accrued thereon, to be due and payable immediately, will become immediately due and payable, anything in the Indenture or in the Bonds to the contrary notwithstanding, and (b) exercise any other remedies available to the Trustee and the Owners in law or at equity.

Pledged Revenues
The City has pledged a portion, as security for bonds issued, either directly or through the Palm Springs Financing Authority, a portion of future tax increment revenue (including Low- and Moderate-Income Housing set-aside and pass-through allocations) received. The bonds issued were to provide financing for various capital projects and accomplish Low-and-Moderate-Income Housing projects. Assembly Bill IX 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the various bonds is $27,808,807, payable through September 2034. For the current year, principal and interest paid and total property tax revenues were $2,390,796 and $2,695,726 respectively. 84 Item 3A - Page 101
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 8 - Compensated Absences
The City's policies relating to compensated absences are described in Note I. The liability will be paid in future years by the General Fund and the Internal Service Fund for the governmental activities, and the Airport Enterprise Fund for business-type activities as it becomes due, Changes in compensated absences for the year ended June 30, 2024, are as follows:

Gon~rnmental Acthities:

Compensated absences payable
Business-Type Acti,ities:

Compensated absences payable
Note 9 - Claims and Judgments
Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Due within
One Year
Due in More
Than One Year
$ 8,723,360 $ 926,949 $ (123,299) $ 9,527,010 $ 6,835,146 $ 2,691,864 $ 1,489,254 $ 389,287 $ (24,001) $ 1,854,540 $ 1,330,538 $ 524,002 The City is exposed to various risks ofloss related to its operation, including losses associated with errors and omissions, injuries to employees and members of the public. The City's Internal Service Risk Management Fund is used to account for and finance uninsured risks of loss. The City purchases a Public Entity Excess Retained Limits Liability policy through Safety National Casualty Corporation, which is a leading specialty insurance provider with a financial strength rating of A++ (Superior) from A.M. Best Company (A.M. Best Company Rating - Safety National Casualty Corporation). This policy is designed to cover claims in excess of the City's retention of $3,000,000 for General Liability, Automobile Liability, Law Enforcement Liability, and Public Officials and Employment Practices Liability.

The Successor Agency is covered under the City of Palm Spring's insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency.

The City of Palm Springs Excess Workers' Compensation and Employers' Liability insurance is through Safety National Casualty Corporation. Under this policy, the City recovers claims in excess of the self-insured retention of $1,000,000 and provides workers' compensation coverage up to $50,000,000 and employers' liability coverage up to $1,000,000.

The claims and judgements liability reported in the Internal Service Risk Management Fund is based on the requirements of Governmental Accounting Standards Board Statements Nos. 10 and 30, which requires that a liability for claims and judgements be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount ofloss can be reasonably estimated. As of June 30, 2024, claims and judgments payable, including estimated claims for incurred but not reported claims, amounted to $11,133,758 of which $4,922,495 represents the current portion.

During the past three fiscal (claims) years, none of the above programs of protection have had any settlements or judgements that exceeded pooled or insured coverage. There have been no significant reductions in insured liability coverage in the prior year.

Changes in the claims and judgments payable amounts for the three years ended June 30, 2024 are as follows:

Beginning of Current Year Balance at
F~cal Year Claims and Changes Claims Fiscal
Fiscal Year Liability in Estimates Payments Year End
2021-2022 $ 14,758,820 $ 5,004,816 $ (9,352,494) $ 10,411,142 2022-2023 10,411,142 4,147,110 (4,103,627) 10,454,625
2023-2024 10,454,625 4,996,530 (4,317,397) 11,133,758
85 Item 3A - Page 102
City of Palm Spring s
Notes to the Basic Financial Statements (Continu ed)
For the Year Ended Jun e 30, 2024
Note 10 - Defined Benefit Pension Plan
A. General Informati on about the Pension Plan s
Plan Description
The City of Pa lm Sprin gs cont ribut es to the California Publ ic Employees Retireme nt System ("CalP ERS"), an age nt multipl e-empl oyer pub lic employee de fined benefit pens ion plan. Ca!PERS pro vides retirement and di sabil ity benefit s, an nua l cost-of- living adj ustments, and deat h b enefits to plan members and beneficiaries.

CalPERS acts as a comm on investment and adm inistrative agent for p articip ating pub lic entities within the State of Californ ia. Benefit provisions and all other requirement s are establi shed by s tate statute and city ordina nce. Copies of CalPERS' annua l fina ncial r eport may be obtained from CalPERS' s website at ~ \Hv.ca lpers.gov under Forms and Pu blicatio ns.

Benefits Provided
CalPERS pro vides service retirem ent and disab ility benefits, annual cost of living adju stm ents and dea th ben efits to plan membe rs, who must be pub lic employees and beneficiaries. Benefits are based o n years of credited service, equal to one yea r of full -time empl oyment. Members with five yea rs o f tota l serv ice a re eligib le to retire at age 50 with statutorily reduced benefits. A ll members are eligible for non-duty disability benefits after IO years of service. The death b enefit is one of the following: the Basic Death Benefit , the 1957 Survivor Benefit, or the Optio nal Sett leme nt 2W Death Benefit. The cost -of-living adj ustments for each plan are app lied as spec ified by the Public Employees' Retirement Law.

The Plan's provisio ns and benefits in effect at June 30, 2024, are summari zed as follows:

Hire date
Benefit formula
Benefit vest ing schedule
Benefit pay ments
Retirement age
Mont hly benefits, as a% of eligible compensation
Required emp Joy ee contributio n rates
Required employer contribution during measurement J
Hire date
Benefit formula
Benefit vesting schedule
Benefit payment s
Retirement age
Month ly benefits, as a% of eligible compensa tion
Required employee contribut ion rates
Required emp Joy er co ntr ibution during measure ment I Classic
Prior to
Janu ary I , 20 13

2.7% @ 55
5 years of service
Month ly for life
50 2.0% to 2.7%

8.000%

10.8 10%
Class ic
Prior to
January I , 20 13
3% @ 50
5 years of service
Monthly for life
50 3%, 50+ yrs
86 9.000%

20. 120%
M iscellaneous
Tier2
Prior to
January I, 2013
2%@60
5 years of service
Mont hly for life
50 2.0%to 2.7%

7.000%

10.8 10%
afety
Tier2
On or after
Janu ary I , 2013
3% @ 55
5 years of serv ice
Monthl y for life
50 2.4%-3%, 50 yrs -
55+ y rs.
respectively

9.000%

20. 120%
PEPRA
On or after
January I, 2013
2% @ 62
5 years of serv ice
Monthl y for life
S2
l.0% to 2.5%

8.000%

10.810%
PEPRA
On or afte r
January I , 20 I 3

2.7% @ 57
5 years of serv ice
Monthl y for life
52 2%-2.7% , 50 yrs -
57+ yrs,
respectively

12.750%

20. 120%
Item 3A - Page 103
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 10 - Defined Benefit Pension Plan (Continued)
A. Ge11eral I11for111atio11 about the Pe11sio11 Pla11s (Co11ti11ued) Employees Covered
At June 30, 2022, the valuation date, the following employees were covered by the benefit terms of the Plan:

Active employees
Transferred members
Terminated members
Retired Employees and Beneficiaries
Total
Co11tributio11 Descriptio11
Miscellaneous
306
118
201
563
1188
Safety
167
40 36
289
532
Section 20814(c) of the California Public Employees' Retirement Law (PERL) 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 I following notice of a change in the rate. The total plan contributions are determined through the Ca!PERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2024, the employer contributions recognized as a reduction to the net pension liability for the Miscellaneous and Safety Plan were $8,895,872 and $14,057,357, respectively.

B. Net Pe11sio11 Liability
The City's net pension liability is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans 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 updated procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Methods a11d Ass11111ptio11s Used to Deter111i11e Total Pe11sio11 Liability The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Entry Age Nonna! in accordance with the requirement of
GASB Statement No. 68

6.90%

2.30%
Varies by Entry Age and Servire
Derived usingCalPERS' Membership Data for all Funds.

Contract COLA up to 2.30% until Purchasing Power
Protection Allowance Floor on Purchasing Power applies,

2.30%, thereafter
1The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2021 Ca/PERS Experie11ce Study a11d Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the Ca!PERS website.
87 Item 3A - Page 104
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 10 - Defined Benefit Pension Plan (Continued)
B. Net Pe11sio11 Liability (Co11ti11ued)
Cfla11ges ofAssu111ptio11s
During 2023, there were no changes in assumptions.

Discou11t Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will .be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Lo11g-Term Expected Rate ofRetum
The long-term expected rate ofreturn on pension plan investments was determined using a building-block method in which 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. Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for the assumed administrative expenses of IO Bases points. ·
The expected real rates of return by asset class are as follows:

Assumed
Asset Class
1 Asset Allocation Real Retum
1 ·"
Global equity - Cap-weig)lted 30.00% 4.54%
Global equity - Non-Cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mort~-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
Hig)l yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private equity 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
1 An expected inflation of2.30% used for this
2 Figures are based on the 2021 Asset Liability Management Study 88 Item 3A - Page 105
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 10 - Defined Benefit Pension Plan (Continued)
C. Clta11ge i11 Net Pe11sio11 Liability
The following table shows the changes in net pension liability recognized over the measurement period for the Miscellaneous agent multiple-employer plan:

Miscellaneous Plan
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) - (a) - (b)
Balance at June 30, 2022 (Valuation Date) $ 259,210,330 $ 187,548,575 $ 71,661,755 Changes Recognized for the Measurement Period:

Service Cost 4,598,625 4,598,625
Interest on the total pension liability 17,716,522 17,716,522 Changes of benefit terms 344,623 344,623
Changes of assumptions
Difference between expected and actua1 experience 2,688,149 2,688,149 Plan to p Ian resource movement
Contributions from the employer 8,865,155 (8,865, 155)
Contributions from employees 2,169,225 (2,169,225)
Net investment income 11,545,707 (11,545,707)
Benefit payments, including refunds of employee
contributions (15,562,460) (15,562,460)
Administrative expenses (137,914) 137,914
Other Miscellaneous Income/(Expense)
Net Chan3=s during July l, 2022 to June 30, 2023 9,785,459 6,879,713 2,905,746 Balance at June 30, 2023 (Measurement Date) $ 268,995,789 $ 194,428,288 $ 74,567,501 The following table shows the changes in net pension liability recognized over the measurement period for the Safety agent multiple-employer plan:

Safety Plan
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2022 (Valuation Date) $ 331,465,446 $ 208,410,233 $ 123,055,213 Changes Recognized for the Measurement Period:

Service Cost 6,629,542 6,629,542
Interest on the total pension liability 22,763,925 22,763,925 Changes of benefit terms 158,949 158,949
Changes of assumptions
Difference between expected and actual experience 3,717,575 3,717,575 Plan to plan resource movement
Contributions from the employer 13,250,442 (13,250,442) Contributions from employees 2,515,446 (2,515,446)
Net investment income 12,931,787 (12,931,787)
Benefit payments, including refunds of employee
contributions (I 7,489,559) (17,489,559)
Administrative expenses (153,255) 153,255
Other Miscellaneous Income/(Expense)
Net Chan~ duringJuly 1, 2022 to June 30, 2023 15,780,432 11,054,861 4,725,571 Balance at June 30, 2023 (Measurement Date) $ 347,245,878 $ 219,465,094 $ 127,780,784 89 Item 3A - Page 106
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 10 - Defined Benefit Pension Plan (Continued)
C. C/za11ge i11 Net Pe11sio11 Liability (Co11ti1111ed)
Se11sitivity oftlze Net Pe11sio11 Liability to C/za11ges i11 t/ze Discou11t Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or I percentage-point higher (7.90 percent) than the current rate:

Plan's Net Pension Liability/(Asset)
Discount Rate Current Discount Discount Rate
-1% (5.90%) Rate (6.90%) +1%(7.90%)
Miscellaneous Plan $ 107,638,651 $ 74,567,501 $ 47,095,841 Safety Plan $ 175,712,495 $ 127,780,784 $ 88,581,501
Pe11sio11 Pla11 Fiduciary Net Positio11
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Annual Comprehensive Financial Report closing and final reconciled reserves.

Detailed information about the plans' fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.

Pe11sio11 Expe11se a11d Deferred Outflows a11d Deferred I11flows of Resources Related to Pe11sio11s For the Miscellaneous agent multiple-employer plan, at the measurement date June 30, 2023, the net pension liability was $74,567,501. The liability will be paid in future years by the General Fund, the Motor Vehicle Replacement Internal Service Fund, the Facilities Maintenance Internal Service Fund, the Risk Management Internal Service Fund, the Wastewater Enterprise Fund, and the Airport Enterprise Fund as it becomes due. For the measurement period ended June 30, 2023 (the measurement date), the City incurred a pension expense/(income) of $11,359,618 for the Miscellaneous Plan.

As of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions for the Miscellaneous Plan as follows:

Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date $ 8,895,872 $ Changes of assumptions 1,812,793
Difference between expected and actual experience 1,728,096 (1,277,027) Net difference between projected and actual earning
on pension plan investments 8,826,109
Total $ 21,262,870 $ (1,277,027)
90 Item 3A - Page 107
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 10 - Defined Benefit Pension Plan (Continued)
C. Clla11ge i11 Net Pe11sio11 Liability (Co11ti11ued)
Pe11sio11 Expe11se a11d Deferred Outflows a11d Deferred I11flows of Resources Related to Pe11sio11s (Co11ti11ued)
The $8,895,872 reported as deferred outflows of resources represents contributions made after the measurement date of the net pension liability but before the end of the City's reporting period and will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows/
(lnflo,.,)
Measurement of Resources
Period Miscellaneous
F.nding June 30 Plan
2024 $ 3,032,561
2025 1,617,000
2026 6,199,742
2027 240,668
2028
Thereafter
$ 11,089,971
The expected average remaining service lifetime ("EARSL") for the Miscellaneous Plan for the measurement period June 30, 2023 is 2.8 years, which was obtained by dividing the total service years of 3,303 (the sum of remaining service lifetimes of the active employees) by I, 188 (the total number of participants: active, inactive, and retired).

For the Safety agent multiple-employer plan, at the measurement date June 30, 2023, the net pension liability was $127,780,784. The liability will be paid in future years by the General Fund as it becomes due. For the measurement period ended June 30, 2023 (the measurement date), the City incurred a pension expense of $18,644,746 for the Plan.

As of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions for the Safety Plan as follows:

Safety Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date $ 14,057,357 $ Changes of assumptions 5,774,173
Difference between expected and actual experience 3,473,967 (1,621,360) Net difference between projected and actual earning;
on pension plan investments 9,968,582
Total $ 33,274,079 $ (I ,621,360)
91 Item 3A - Page 108
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 10 - Defined Benefit Pension Plan (Continued)
C. Change in Net Pension Liability (Contilmed)
Pensio11 Expe11se a11d Deferred Outflows and Deferred h1flows of Resources Related to Pe11sions {Co11ti11ued)
The $ I 4,057,357 reported as deferred outflows of resources represents contributions made after the measurement date of the net pension liability but before the end of the City's reporting period and will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows/
(Inllom)
Measurement of Resources
Period Safety
Ending June 30 Plan
2024 $ 5,239,640
2025 3,986,736
2026 8,002,427
2027 366,559
2028
Thereafter
$ 17,595,362
The expected average' remaining service lifetime ("EARSL") for the Safety Plan for the measurement period June 30, 2023 is 4.1 years, which was obtained by dividing the total service years of2,196 (the sum of remaining service lifetimes of the active employees) by 532 (the total number of participants: active, inactive, and retired).

Note 11- Other Postemployment Benefits ("OPED")
A. Ge11eral Informatio11 about Other Postemployment Be11ejit Pla11 Pla11 Descriptio11
The City provides retiree medical insurance benefits under the Ca!PERS health plan, a cost sharing plan, to eligible retirees and their spouses in accordance with various labor agreements. Employees are eligible for retiree health benefits if they retire from the City on or after age 50 (unless disabled) and are eligible for a Ca!PERS pension. The benefits are available only to employees who retire from the City.

Employees Covered
At June 30, 2022, the valuation date, the following numbers of participants were covered by the benefit terms:

Active employees
Retirees and beneficiaries
Inactive with deferred benefits
Total
92 479
266
250
995
Item 3A - Page 109
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 11- Other Postemployment Benefits ("OPEB") (Continued) A. Ge11eral /11formatio11 about Other Poste111ployme11t Be11ejit Pla11 (Co11ti1111ed) Co11trib11tio11s
The contribution requirements of plan members and the City are established and may be amended by the City Council. The City must agree to make a defined monthly payment towards the cost of each retiree's coverage.

The City funds retiree medical insurance benefits on a pay as you go basis, paying for retiree medical insurance from the City's Retiree Health Insurance internal service fund. The City has not set up a trust for purposes of funding the required retiree medical insurance payments. For fiscal year 2024, the City paid a total of$4,036,033 for retiree health insurance.

B. Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2023 for the measurement period July I, 2022 through June 30, 2023. The total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation dated June 30, 2022, based on the following actuarial assumptions:

Disco1111t Rate
Actuarial Cost Method
Actuarial Assumptions:

Discount Rates
General Inflation
Salary Increases
Mortality
Mortality Improvement
Healthcare Cost Trend Rates
Entry Age Normal, Level Percentage of Payn

4.13% per annum as of June 30, 2023

4.09% per annum as of June 30, 2022

2.5% per annum

2.8% per annum, in aggregate
CalPERS 2019 Experience Study
Scale MP-2021
Pre-Medicare- 6.95% in 2024, decreasing to
an ultimate rate of 4.50% in 2049.

Post-Medicare- 4.99% in 2024, decreasing
to an ultimate rate of 4.50% in 2049.

The discount rate used to measure the total OPEB liability are based on the S&P Municipal Bond 20-year High Grade Index. This index indicates discount rates of 4.09% as of June 30, 2022 and 4.13% as of June 30, 2023.

Cha11ge i11 Ass11mptio11
The discount rate was raised from 4.09% to 4.13% based on a change in the S&P Municipal Bond 20-year High Grade index.

There have been no other changes to the assumptions since the last measurement date. 93 Item 3A - Page 110
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 11- Other Postemployment Benefits ("OPEB") (Continued) C. Changes in the Total OPEB Liability
The changes in the total OPEB liability for the plan are as follows:

Increase (Decrease)
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) =(a)• (b)
Balance at June 30, 2022 $ 120,503,280 $ $ 120,503,280
Changes recognized for the measurement period:

Service cost 1,704,511 1,704,511
Interest on the total OPEB liability 4,906,453 4,906,453 Changes of benefit terms
Difference between expected and actual experience (12,817) (12,817) Changes of assumptions (698,803) (698,803)
Contributions from the employer 4,536,682 (4,536,682)
Contributions from employees
Net investment income, net of administrative expense
Benefit payments, including refunds of employee
contributions (4,536,682) (4,536,682)
Administrative expense
Net Changes during July I, 2022 to June 30, 2023 1,362,662 1,362,662 BaJance at June 30, 2023 (Measurement Date) $ 121,865,942 $ $ 121,865,942 The liability will be paid in future years by the General Fund, the Motor Vehicle Replacement Internal Service Fund, the Airport Enterprise Fund, and the Wastewater Enterprise Fund as it becomes due.

Sensitivitv ofthe Total OPEB Liabilitv to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point higher or one percentage point lower than the current discount rate, for the measurement period June 30, 2023:
$
Plan's Net OPEB Liability/(Asset)
Discount Rate
-1%(3.13%)
Current Discount
Rate (4.13%)
Discount Rate
+ 1%(5.13%)
141,707,272 $ 121,865,942 .,;;$ =.,;1;;0;;5,;,;96;;6;;,,9;,;39~ Sensitivitv ofthe Total OPEB Liability to Cha11ges in the Healthcare Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point higher or one percentage point lower than the current healthcare cost trend rates:
$
Plan's Net OPEB Liability/(Asset)
!%Decrease Current Trend Rate _ _:lc:'¼.:.•='n:.:<:..:re:.:a;:;se:..__ 105,645,428 $ 121,865,942 =$==1=4=2,=05=1=,2=4=1
94 Item 3A - Page 111
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 11- Other Postemployment Benefits ("OPEB") (Continued) C. Changes in the Total OPEB Liability (Continued)
OPEB Expense and Deferred Outflows ofResources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $750,620. At June 30, 2024, the City's deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB Plan
Contribution made after the measurement date
Difference between expected and actual experience
Changes of assumptions
Total
Deferred outflows Deferred inflows
of Resources of Resources
$ 4,636,033 $
(15,240,974)
6,671,165 (16,877,160)
$ 11,307,198 $ (32,118,134)
=========-
The $4,636,033 reported as deferred outflows of resources represents contributions made after the measurement date of the OPEB liability but before the end of the City's reporting period and will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows ofresources related to OPEB will be recognized as OPEB credit as follows: · Deferred Outflons
Measurement Period /(Inllo\l,)
Ending June 30 of Resources
2025 $ (4,930,384)
2026 (5,297,460)
2017 (4,920,788)
2028 (3,491,640)
2029 (3,494,235)
Thereafter (3,312,462)
$ (25,446,969)
95 Item 3A - Page 112
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended Jone 30, 2024
Note 12 - Fund Balance Classifications
At June 30, 2024, the City's governmental funds had the following fund balance classifications:

Nonspendable:

N ates and loans receivables
Prepaid items
Deposits
Advances to other funds
Land held for resale
Subtotal
Restricted:

Community development projects
Capital Projects
Public safety grants and programs
Public works projects.

Debt service
Library
Special.projects
Subtotal
Committed:

Affordable housing
Assigned:

Public works projects
Capital projects
Debt Service
Ca!PERS
Affordable housing
Cannabis Social Program
Reserve Economic Incentive
General
$ 166,667 $
167,888
191,926
1,210,000
49,950
1,786,431
3,211,707
40,250,000
6,166,762
48,538
166,667
46,631,967
96,357,988
Cap ital Projects Fund
Measure J
43,505,623
43,505,623
$
Capital
Projects
25,264,132
25,264,132
Nonmajor
Governmental
Funds
$
21,995,857
601,828
7,544,105
27,695,441
1,647,474
1,691,062
1,835,932
63,011,699
5,818,899
5,818,899
$
Total
166,667
167,888
191,926
1,210,000
49,950
1,786,431
21,995,857
601,828
7,544,105
27,695,441
1,647,474
1,691,062
1,835,932
63,011,699
3,211,707
43,505,623
25,264,132
5,818,899
40,250,000
6,166,762
48,538
166,667
121,220,621
96,357,988
Subtotal
Unassigned
Total $147,988,093 $ 43,505,623 $ 25,264,132 $ 68,830,598 $ 285,588,446 96 Item 3A - Page 113
City of Palm Springs
Notes to the Bas!c Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 13 - Net Investment in Capital Assets
The net investment in capital assets for governmental activities, business-type activities, and enterprise funds is calculated as follows:

Gou~mmental Business-Type Enterprise Fund
Actil-ities Activities Airport \Vastewater Golf
Total capital assets, net $437,051,825 $ 176,177,759 $ 98,444,765 $ 72,216,367 $ 5,516,627 Unspent capital debt proceed 9,671,727 9,671,727
Deferred loss on refunding debt 3,374,486 28,881 28,881 Cap ital related debt (154,242,657) (41,527,080) (16,454,076) (22,541,059) (2,531,945) Net investment in capital assets $286,183,654 $ 144,351,287 $91,662,416 $ 49,675,308 $ 3,013,563 Note 14 - Change to or within the Financial Reporting Entity The General Debt Service Fund was previously reported as a major fund. The City no longer elect General Debt Service Fund as a major fund for the fiscal year ended June 30, 2024. The change to or within the financial reporting entity resulted in restatement of beginning fund balance as follows:

July 1, 2023, Change to or within the July 1, 2023,
As Previously Reported Financial Reporting F.ntity ___ As_R_e_s_ta_t_ed __ _ Governmental Funds
Major Funds:

General Fund $
Measure J Capital Projects Fund
Capital Projects Fund
General Debt Service Fund
Nonmajor Funds
Total GO\'emmental Funds $
153,685,767 $
39,070,325
16,926,631
6,563,957
55,030,533
271,277,213 $
$ 153,685,767
39,070,325
16,926,631
(6,563,957)
6,563,957 61,594,490
$ 271,277,213 =========
Note 15 - Other Required Fund Disclosures
The following funds had deficit balances as of June 30, 2024:

Funds
Fiduciary Funds:

Private Purpose Trust Fund
Successor Agency Funds
Internal Service Fund:

Cogeneration Plant Internal Service Fund
Amount
$ (23,761,639)
(908,336)
The following funds exceeded appropriation amounts for the year ended June 30, 2024:

Funds
Nonmajor Governmental Funds:

Special Projects Special Revenue Fund
Small Hotel TBID Special Revenue Fund
Final
Appropriations
$
97 685,000
769,046
Expenditures
$ 783,614
872,158
Excess
$ (98,614)
(103,112)
Item 3A - Page 114
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 16 - Construction Commitments
The City has active construction projects as of June 30, 2024. The projects include streets and drainage, facilities and equipment, traffic signal projects, landscapes, and bridges. At fiscal year-end, the City's encumbrances with contractors were as follows:

Remaining
Name of Project Spent-to-Date Commitment
Indian Canyon Drive Widening $ 6,252,812 $ 32,109,118
Traffic Signal Improvements (14 Intersections) 1,403,945 2,081,898 Plaza Theatre Renovations 4,034,467 20,971,433
Bogert Trail Sewage Lift Station 847,791 1,494,348
Storm Drain Line 20 7,447,970 4,119,684
Recreation Fields LED Lighting Upgrades 4,643,135 820,728 WWf P Digester & Gas Flare 13,700,126 1,769,858
Sludg,, Drying Beds 16-18 and 19-26 Rehabilitations 3,041,261 160,066 Airport Common Use Podiums - Bono Concourse 1,838,744 102,084 Navigation Center 29,306,584 2,143,209
2024 Pavement Rehabilitation 5,601,190 3,198,266
$ 78,118,025 $ 68,970,692
Note 17 -Tax Abatement (Hotel Incentive Program)
The City has a Hotel Incentive Program allowing hotel owners to refurbish older properties or build new hotels utilizing some of their paid Transient Occupancy Taxes (TOT) which are refunded for the agreed upon refurbish costs. During the year ended June 30, 2024, TOT was refunded under the agreements to the following hotels:

Incentive Amount End of Agreement
Hotel Zoso $ 131,201 September 30, 2023
Sp arrows Hotel 141,530 September 30, 2023
Sky lark Hotel 47,852 February 28, 2024
Palm Spring; Hotel 55,227 October 3 I, 2024
Dive Palm Springs 44,792 June 30, 2025
Palm Mountain Resort 152,246 September 30, 2025
Alcazar Palm Springs 68,940 December 31, 2025
The Arrive Hotel 166,930 February 28, 2026
Twin Palms 88,631 January 31, 2032
Descanso Resort 69,504 December 31, 2032
Santiago Resort 65,276 February 28, 2032
Rowan Kimpton Hotel l,341,129 November 30, 2024
Total $ 2,373,258
98 Item 3A - Page 115
City of Palm Springs
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 18 - Commitments and Contingencies
Under the terms of federal, county, and state grants, periodic audits are required and certain costs may be questioned as not appropriate expenditures under the terms of the grants. Such audits could lead to reimbursements to the grantor agencies. If expenditures were disallowed, the City believes such disallowances, if any, would be immaterial.

The City is a defendant in certain legal claims and actions arising from the normal course of operations. In the opinion of management and legal counsel, such claims and actions will not have a material adverse effect on the City's financial position.

Note 19 - Subsequent Events
Housing and Economic Development Initiatives
On November 14, 2024, the City Council approved the final agreement related to the Section 14 claims. The agreement includes a $5.91 million cash settlement which was accrued as of June 30, 2024 in the Risk Management Internal Service Fund. Additionally, the City Council approved a $20 million housing program that includes $10 million for a First-Time Home buyer Assistance Program and $10 million for the establishment of a Community Trust with prioritized outreach for Section 14 families. These programs will be funded with existing General Fund budget. 2024 Tax Allocation Refunding Parity Bonds
On November 21, 2024, the Successor Agency to the City' Community Redevelopment Agency issued $5,850,000 2024 Tax Allocation Refunding Parity Bonds to refund 2014 Subordinate Tax Allocation Refunding Bonds. The bonds bear an interest rate of 5.00% and the principal matures in amount ranging from $480,000 to $705,000 through 2034.

Ca/PERS Plans Unfunded Accrued Liability
On November 21, 2024, the City Council approved the use of the set aside funds for CalPERS in the General Fund and Airport Enterprise Fund to pay down the City's Unfunded Accrued Liability in the amount of $28.9 million and place the $22.4 million in an irrevocable Section 115 Trust for future liability payment. 99 Item 3A - Page 116

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
IOI
Item 3A - Page 117
City of Palm Springs
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Bud~eted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Truces $ 156,749,025 $ 156,749,025 $ 151,779,208 $ (4,969,817) Intergovernmental 19,368,108 24,357,673 18,373,659 (5,984,014) Licenses and pennits 8,409,522 8,412,554 8,286,527 (126,027) Fines and forfeitures 594,671 594,671 1,087,804 493,133 Use of money and property 4,785,027 4,785,027 6,943,358 2,158,331 Charges for services 6,836,881 6,876,088 7,259,600 383,512 Miscellaneous 774,349 776,540 1,121,095 344,555
Total revenues 197,517,583 202,551,578 194,851,251 (7,700,327) EXPENDITURES:

Current:

General government 54,685,320 49,757,039 34,071,326 15,685,713 Public safety 70,470,421 80,741,288 75,935,603 4,805,685 Cultural and convention center 9,046,104 9,051,347 8,757,951 293,396 Parks and recreation 9,036,491 9,832,716 8,137,367 1,695,349 Public works 24,846,542 26,725,314 23,193,197 3,532,117 Library 3,433,429 3,465,821 3,218,654 247,167
Capital outlay 25,486,637 25,496,637 26,133,295 (636,658) Debt service:

Principal retirement 1,377,141 1,377,141 1,944,949 (567,808) Interest and fiscal charges 375,500 375,500 15,067 360,433 Total expenditures 198,757,585 206,822,803 181,407,409 25,415,394

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,240,002) (4,271,225) 13,443,842 17,715,067 OTHER FINANCING SOURCES (USES):

Issuance of debt 4,635,556 4,635,556
Proceeds from sale of capital assets 124,201 124,201
Transfers out (19,731,879) (22,870,629) (23,901,273) (1,030,644) Total other financing sources (uses) (19,731,879) (22,870,629) (19,141,516) 3,729,113 NET CHANGE IN FUND BALANCE $ (20,971,881) $ (27,141,854) (5,697,674) $ 21,444,180 FUND BALANCE:

Beginning of year 153,685,767
End of year $ 147,988,093
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104
Item 3A - Page 119
City of Palm Springs
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30 2024
Budget and Budgetary Accounting
The City Council establishes budgets for all governmental funds on a basis consistent with Generally Accepted Accounting Principles, with the exception of capital projects which are budgeted on a project-length basis. The City Council approves the budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the City Council. All supplemental appropriations, where required during the period, are also approved by the City Council. Intradepartmental budget transfers are approved by the City Manager.

In most cases, expenditures may not exceed appropriations at the fund level. At fiscal year-end, all operating budget appropriations lapse. The budget was not adopted for the Opioid Settlement Special Revenue Fund for the year ended June 30, 2024.

Encumbrances are estimates of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in governmental funds. Encumbrances are closed out at the end of each fiscal year.
105
Item 3A - Page 120
City of Palm Springs
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30 2024
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan Measurement period 2013-14' 2014-15 2015-16 2016-17
Total pension liability
Service cost $ 3,620,370 $ 3,638,462 $ 3,592,689 $ 4,112,823 Interest 13,835,783 14,462,203 14,978,434 15,276,818
Changes of benefit terms
Changes of assumptions (3,373,293) 12,113,075
Differences between expected and actual experience 165,779 (994,153) (2,221,040) Benefit payments, including reftmds of employee contributions (9,349,367) (10,023,409) (10,647,582) ( I 1,068,366) Nd change in total pension liability 8,106,786 4,869,742 6,929,388 18,213,310 Total pension liability - beginning 187,341,608 195,448,394 200,318,136 207,247,524 Total pension liability - ending (a) $ 195,448,394 $ 200,318,136 $ 207,247,524 $ 225,460,834 Pension fiduciary net position
Contributions - employer $ 3,834,378 $ 4,332,593 $ 4,921,063 $ 5,240,243 Contributions - employee 1,523,877 1,635,767 1,523,892 1,589,948 Net invesbnent income 22,411,505 3,336,784 730,670 15,993,781 Benefit payments, including refunds of employee contributions (9,349,367) (10,023,409) (10,647,582) (11,068,366) Plan to plan resource movement 123 2,627
Administrative expense (167,261) (90,556) (214,122)
Other Miscellaneous Income/(Expense)
Net change in plan fiduciary net position 18,420,393 (885,403) (3,559,886) 11,541,484 Plan lidudary net position - beginning 1
131,051,155 149,471,548 148,586,145 145,026,259
Plan fiduciary net position - ending (b) $ 149,471,548 $ 148,586,145 $ 145,026,259 $ 156,567,743 Plan net pension liability- ending (a) - (b) $ 45,976,846 $ 51,731,991 $ 62,221,265 $ 68,893,091 Plan liduciary net position as a percentage 76.48% 74.18% 69.98% 69.44% of the total pension liability
Covered payroll 2
$ 17,841,364 $ 18,686,572 $ 19,306,195 $ 20,128,338
Plan net pension liability as a percentage of covered payroll 257.70% 276.84% 322.29% 342.27% 1 Includes any beginning of year adjustment.
2017-18
$ 4,139,745
15,577,388
(1,439,205)
(2,178,980)
(12,093,941)
4,005,007
225,460,834
$ 229,465,841
$ 5,808,438
1,706,914
13,132,786
(12,093,941)
(382)
(243,976)
(463,314)
7,846,525
156,567,743
$ 164,414,268
$ 65,051,573

71.65%
$ 20,888,815
311.42%
2 Includes one year's payroll growth using 2.80 percent growth assumption for fiscal yaer ended JW1e 30, 2022 and 2023; 2. 75 percent payroll growth assumption for fiscal years ended June 30, 2018-2 I; 3.00 percent payroll gro,,.th asswnption for fiscal years ended June 30, 2014-17.

Notes to Schedule:

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, unJess the liability impact is deemed to be material by the plan actuary.

In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July I, 2023. The impact, if any, is included in the changes of benefit tenns.

Changes of Asswnptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-tenn expected rate of return, CalPERS took into account long-tenn market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long tenn. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate asswnption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
106
Item 3A - Page 121
City of Palm Springs
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan Measurement period 2018-19 2019-20 2020-21 2021-22 2022-23 Total pension liability
Service cost $ 4,208,238 $ 4,152,046 $ 3,987,258 $ 4,148,867 $ 4,598,625 Interest 16,144,692 16,589,141 17,080,970 17,074,565 17,716,522 Changes of benefit terms 344,623
Changes of assumptions 6,992,201
Differences between expected and actual experience 567,509 (1,041,772) 205,982 (4,925,679) 2,688,149 Benefit payments, including refunds of employee contributions (12,675,189) (13,458,760) (14,513,336) (14,792,244) (15,562,460) Net thange in total pension liability 8,245,250 6,240,655 6,760,874 8,497,710 9,785,459 Total pension liability- beginning 229,465,841 237,711,091 243,951,746 250,712,620 259,210,330 Total pension liabilily - ending (a) $ 237,711,091 $ 243,951,746 $ 250,712,620 $ 259,210,330 $ 268,995,789 Pension fiduciary net position
Contributions - employer $ 6,489,424 $ 7,333,963 $ 7,525,607 $ 8,122,222 $ 8,865,155 Contributions - employee 1,835,717 1,764,550 1,676,713 1,843,421 2,169,225 Net investment income 10,726,808 8,554,172 39,002,574 (15,639,674) 11,545,707 Benefit payments, including refunds of employee contributions (12,675,189) (13,458,760) (14,513,336) (14,792,244) (15,562,460) Plan to plan resource movement
Administrative expense (117,330) (240,609) (174,442) (129,662) (137,914) Other Miscellaneous Income/(Expense) 382
Net change in plan fiduciary net position 6,259,812 3,953,316 33,517,116 (20,595,937) 6,879,713 Plan fiduciary net position - beginning 1
164,414,268 170,674,080 174,627,396 208,144,512 187,548,575 Plan fiduciary net position - ending (b) $ 170,674,080 $ 174,627,396 $ 208,144,512 $ I 87,548,575 $ 194,428,288 Plan net pension liability - ending (a) - (b) $ 67,037,011 $ 69,324,350 $ 42,568,108 $ 71,661,755 $ 74,567,501 Plan fiduciary net position as a percentage 71.80% 71.58% 83.02% 72.35% 72.28% of the total pension liability
Covered payro112
$ 21,751,370 $ 21,991,770 $ 21,980,474 $ 20,953,875 $ 23,582,691 Plan net pension liability as a percentage of covered payroll 308.20% 315.23% 193.66% 342.00% 316.20% 107
Item 3A - Page 122
City of Palm Springs
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan Measurement period 2013-141
2014-15 2015-16 2016-17
Total pension liability
Service cost $ 3,785,830 $ 3,579,202 $ 3,694,824 $ 4,569,365 Interest 16,202,972 16,817,588 17,690,881 18,189,561
Changes of benefit tenns
Changes of assumptions (4,117,429) 15,388,990
Differences between expected and actual experience 207,093 3,936,551 (440,513) Benefit payments, including refunds of employee contributions (11,730,688) (12,623,417) (13,327,695) (13,922,996) Net cban~e in lotal pension liability 8,258,114 3,863,037 11,994,561 23,784,407 Total pension liability - beginning 220,012,072 228,270,186 232,133,223 244,127,784 Total pension liability - ending (a) $ 228,270,186 $ 232,133,223 $ 244,127,784 $ 267,912,191 Pension fiduciary net position
Contributions - employer $ 4,602,200 $ 5,272,145 $ 5,906,758 $ 7,095,444 Contributions - employee 1,392,329 1,348,094 1,335,497 1,442,765 Net investment income 25,042,700 3,617,828 796,599 17,283,485 Benefit payments, including refunds of employee contributions (I 1,730,688) (12,623,417) (13,327,695) (13,922,996) Plan to plan resource movement
Administrative expense (183,062) (99,128) (232,190)
Other Miscellaneous Income/(Expense)
Net change in plan fiduciary net position 19,306,541 (2,568,412) (5,387,969) 11,666,508 Plan fiduciary net position - beginning 1
145,914,152 165,220,693 162,652,281 157,264,312
Plan fiduciary net position - ending (b) $ 165,220,693 $ 162,652,281 $ 157,264,312 $ 168,930,820 Plan net pension liability- ending (a) - (b) $ 63,049,493 $ 69,480,942 $ 86,863,472 $ 98,981,371 Plan fiduciary net position as a percentage 72.38% 70.07% 64.42% 63.05% of the total pension liability
Covered payroll 2
$ 13,209,455 $ 13,037,562 $ 13,664,290 $ 15,010,562
Plan net pension liability as a percentage of covered payroll 477.31% 532.93% 635.70% 659.41% 1 Includes any beginning of year adjustment.
2017-18
$ 4,910,144
18,707,566
(1,327,718)
(224,141)
(14,342,279)
7,723,572
267,912,191
$ 275,635,763
$ 7,446,996
1,597,791
14,186,404
(14,342,279)
(413)
(263,241)
(499,899)
8,125,359
168,930,820
$ 177,056,179
$ 98,579,584

64.24%
$ 16,237,787
607.10%
2 Includes one year's payroll growth using 2.80 percent growth assumption for fiscal yaer ended June 30, 2022 and 2023; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth asswnption for fiscal years ended June 30, 2014-17.

Notes to Schedule:

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 ofTwo 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.

In 2022, SB 1168 increased the standard retiree lump swn death benefit from $500 to $2,000 for any death occurring on or after July I, 2023. The impact, if any, is included in the changes of benefit tenns.

Changes of Assumptions: There were no assumtion changes in 2023, Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, Ca!PERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic asswnptions and the inflation rate asswnption were changed in accordance with the 2021 Cal PERS Experience Study and Review of Actuarial Asswnptions. The accounting discount rate was 7.15% for measurement dates 201 7 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
108
Item 3A - Page 123
City of Palm Springs
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan Measurement period 2018-19 2019-20 2020-21 2021-22 2022-23 Total pension liability
Service cost $ 4,893,432 $ 5,322,964 $ 5,673,430 $ 6,278,174 $ 6,629,542 Interest 19,523,838 20,316,740 21,171,704 21,732,508 22,763,925 Changes of benefit terms 158,949
Changes of asswnptions 11,273,385
Differences between expected and actual experience 2,501,866 1,712,111 1,902,838 (3,165,512) 3,717,575 Benefit payments, including refunds of employee contributions (15,047,324) (15,461,944) (16,058,479) (16,740,048) (17,489,559) Net change in total pension liability 11,871,812 11,889,871 12,689,493 19,378,507 15,780,432 Total pension liability - beginning 267,912,191 279,784,003 291,673,874 312,086,939 331,465,446 Total pension liability - ending (a) $ 279,784,003 $ 291,673,874 $ 304,363,367 $ 331,465,446 $ 347,245,878 Pension fiduciary net position
Contributions - employer $ 8,585,908 $ 10,001,306 $ 10,835,613 $ 11,857,376 $ 13,250,442 Contributions - employee 1,671,882 2,081,546 2,081,430 2,178,264 2,515,446 Net investment income 11,544,364 9,141,826 42,832,470 (17,433,798) 12,931,787 Benefit payments, including refunds of employee contributions (15,047,324) (15,461,944) (16,058,479) (16,740,048) (17,489,559) Plan to plan resource movement
Administrative expense (126,351) (258,951) (188,988) (142,461) (153,255) Other Miscellaneous Income/(Expense) 413
Net change in plan fiduciary net posilion 6,628,892 5,503,783 39,502,046 (20,280,667) 11,054,861 Plan fiduciary net position - beginning 1
168,930,820 175,559,712 181,063,495 228,690,900 208,410,233 Plan fiduciary net position - ending (b) $ 175,559,7i2 $ 181,063,495 $ 220,565,541 $ 208,410,233 $ 219,465,094 Plan net pension liability- ending (a) - (b) $ 104,224,291 $ 110,610,379 $ 83,797,826 $ 123,055,213 $ 127,780,784 Plan fiduciary net position as a percentage 62.75% 62.08% 72.47% 62.88% 63.20% of the total pension liability
Covered payroll 2
$ 16,426,425 $ 18,013,413 $ 19,469,562 $ 19,521,684 $ 20,601,436 Plan net pension liability as a percentage of covered payroll 634.49% 614.04% 430.40% 630.35% 620.25% 109
Item 3A - Page 124
City of Palm Springs
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - Pension
For the Year Ended June 30 2024
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 2014-15 2015-16 2016-17 2017-18 2018-19
Actuarially determined contribution $ 4,332,593 $ 4,921,063 $ 5,240,243 $ 5,808,438 $ 6,489,424 Contributions in relation to the actuarially
detennined contribution 1 (4,332,593) (4,921,063) (5,240,243) (5,808,438) (6,489,424) Contribution deficiency (excess) $ $ $ $ $
Covered payroll 2 $ 18,686,572 $ 19,306,195 $ 20,128,338 $ 20,888,815 $ 21,751,370 Contributions as a percentage of covered payrolt2 23.19% 25.49% 26.03% 27.81% 29.83% 1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 2 Includes one year's payroll growth using 2.80 percent growth assumption for fiscal yaer ended June 30, 2022 and 2023; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method
Asset valuation method
Inflation
Wage Inflation
Payroll Growth
Investment rate of return
Retirement age
Mortality
Level percentage of payroll
Fair value of assets

2.30%

2.80%

2.75%

6.80% net of pension plan investment expenses; includes Inflation.

The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include IS years of projected mortality improvement using 90 percent of Scale MP- 2016 published by the Society of Actuaries.
110
Item 3A - Page 125
City of Palm Springs
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 2019-20 2020-21 2021-22 2022-23
Actuarially determined contribution $ 7,333,963 $ 7,525,607 $ 8,122,939 $ 8,865,155 Contributions in relation to the actuarially
determined contribution 1 (7,333,963) (7,525,607) (8,122,939) (8,865,155) Contribution deficiency (excess) $ $ $ $
Covered payroll 2
$ 21,991,770 $ 21,980,474 $ 20,953,875 $ 23,582,691
Contributions as a percentage of covered payrolt2 33.35% 34.24% 38.77% 32.91% 111
2023-24
$ 8,895,872
(8,895,872)
$
$ 24,243,006

36.69%
Item 3A - Page 126
City of Palm Springs
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - Pension
For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan 2014-15 2015-16 2016-17 2017-18 2018-19
Actuarially detennined contribution $ 5,272,145 $ 5,906,758 $ 7,095,444 $ 7,446,996 $ 8,585,908 Contributions in relation to the actuarially determined contribution 1 (5,272,145) (5,906,758) (7,095,444) (7,446,996) (8,585,908) Contribution deficiency (excess) $ $ $ $ $
Covered payroll 2 $ 13,037,562 $ 13,664,290 $ 15,010,562 $ 16,237,787 $ 18,013,413 Contributions as a percentage of covered payroll 2

40.44% 43.23% 47.27% 45.86% 47.66%
1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 2 Includes one year's payroll growth using 2.80 percent payroll growth assumption for fiscal year ended June 30, 2022 and 2023; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-

17. Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Asset valuation method
Inflation
Wage Inflation
Payroll Growth
Investment rate of return
Retirement age
Mortality
Entry Age Normal Cost Method
Level percentage of payroll
Fair value of assets

2.30%

2.80%

2.75%

6.80% net of pension plan investment expenses; includes Inflation.

The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 Ca!PERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90 percent of Scale MP- 2016 published by the Society of Actuaries.
112
Item 3A - Page 127
City of Palm Springs
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan 2019-20 2020-21 2021-22 2022-23
Actuarially determined contribution $ 10,001,306 $ 10,835,613 $ 11,857,376 $ 13,250,442 Contributions in relation to the actuarially determined contribution 1 (I 0,001,306) (10,835,613) (11,857,376) (13,250,442) Contribution deficiency (excess) $ $ $ $
Covered payroll2 $ 19,469,562 $ 19,469,562 $ 19,521,684 $ 20,601,436 Contributions as a percentage of covered payroll 2

51.37% 55.65% 60.74% 55.60%
113
2023-24
$ 14,057,357
(14,057,357)
$
$ 21,178,276

66.38%
Item 3A - Page 128
City of Palm Springs
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30 2024
Last Ten Fiscal Years*
Other Postemployment Benefit Plan
Measurement period 2016-17 2017-18 2018-19 2019-20
Total OPEB liability
Service cost $ 3,726,841 $ 3,358,207 $ 3,627,328 $ 3,010,767 Interest 4,040,843 4,484,043 4,515,822 3,921,381
Differences behveen expected and actual experience (20,708,241) Changes of assumptions (11,536,388) 3,755,480 6,018,257 3,023,024 Benefit payments, including refunds of employee
contributions (3,280,004) (3,480,420) (3,698,318) (3,947,609) Net change in total OPEB liability (7,048,708) 8,117,310 (10,245,152) 6,007,563 Total OPED liability - beginning 148,690,866 141,642,158 149,759,468 139,514,316 Total OPEB liability- ending (a) $ 141,642,158 $ 149,759,468 $ 139,514,316 $ 145,521,879 OPEB fiduciary net position
Contributions - employer $ 3,280,004 $ 3,358,204 $ 3,698,318 $ 3,947,609 Benefit payments, including refunds for employee
contributions. (3,280,004) (3,358,204) (3,698,318) (3,947,609) Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b) $ $ $ $
Plan net OPEB liability- ending (a) - (b) $ 141,642,158 $ 149,759,468 $ 139,514,316 $ 145,521,879 Plan fiduciary net position as a percentage 0.00% 0.00% 0.00% 0.00% of the total OPEB liability
Covered- employee payroll $ 34,929,760 $ 45,672,020 $ 46,516,674 $ 49,907,595 Plan net OPED liability as a
percentage of covered-employee payroll 405.51% 327.90% 299.92% 291,58% 2020-21
$ 3,220,216
3,899,600
(10,408,386)
4,409,062
(4,281,158)
(3, I 60,666)
145,521,879
$ I 42,36 I ,213
$ 4,281,158
(4,281,158)
$
$ 142,361,213

0.00%
$ 46,594,259
305.53%
Actuarial cost method Entry Age Normal Entry Age Nonna! Entry Age Normal Entry Age Normal Entry Age Normal Inflation 2. 75% per year 2.75% per year 2.5% per year 2.5% per year 2.5% per year Healthcare cost trend rates 8.0% in 2018, 8.0% in 2018, 6.5% in 2021, 6.5% in 2021, 5.8% in 2023, Step down 0.5% Step down 0.5% fluctuates until fluctuates until fluctuates until each year to 5% each year to 5% ultimate rate of ultimate rate of ultimate rate of in 2024 in2024 4%in2076 4%in2076 3,9% in 2076
Salary increases 3.25% 3.25% 3.00% 3.00% 3.00%
Retirement age From 50 to 75 From 50 to 75 From 50 to 75 From 50 to 75 From 50 to 75 Mortality Ca!PERS 2014 Ca!PERS 2014 Ca!PERS 20 I 7 Ca!PERS 2017 CalPERS 2017 Experience Experience Experience Experience Experience
Study Study Study Study Study
Mortality Improvement MW Scale 2017 MW Scale 2017 MW Scale 2020 MW Scale 2020 MW Scale 2022 Notes to Schedule:

Until a full IO-year trend is compiled, only information for those years available is presented. No assets are accumulated in a trust that meets the criteria in paragraph 4 ofGASB 75.
114
Item 3A - Page 129
City of Palm Springs
Required Supplementary Iuformatiou (Unaudited) (Continued) Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Measurement period
Total OPEB liability
Service cost
Interest
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of employee
contributions
Net change in total OPED liability
Total OPEB liability- beginning
Total OPEB liability- ending (a)
OPED fiduciary net position
Contributions - employer
Benefit payments, including refunds for employee
contributions.

Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Plan net OPEB liability- ending (a)- (b)
Plan fiduciary net position as a percentage
of the total OPEB liability
Covered- employee payroll
Plan net OPEB liability as a
percentage of covered-employee payroll
Last Ten Fiscal Years*
Other Postemployment Benefit Plan
2021-22
$ 2,828,136
3,119,598
(1,982,014)
(21,624,076)
(4,199,577)
(21,857,933)
142,361,213
$ 120,503,280
$ 4,199,577
(4,199,577)
$
$ 120,503,280

0.00%
$ 42,359,521
284.48%
2022-23
$ 1,704,511
4,906,453
(12,817)
(698,803)
(4,536,682)
1,362,662
120,503,280
$ 121,865,942
$ 4,536,682
(4,536,682)
$
$ 121,865,942

0.00%
$ 49,092,553
248.24%
Actuarial cost method Entry Age Normal Entry Age Normal Discount rate
Inflation
Healthcare cost trend rates
Salary increases
Retirement age
Mortality
Mortality Improvement
Notes to Schedule:

4.09%

2.5% per year
Pre-medicare

6.95% and Post-
medicare 4.99%
in 2024,
fluctuates until
ultimate rate of

4.5% in2049

2.80%
From 50 to 75
CalPERS 2019
Experience Study
MP Scale 2021

4.13%

2.5% per year
Pre-medicare

6.95% and Post-
medicare 4.99%
in 2024,
fluctuates until
ultimate rate of

4.5% in 2049

2.80%
From 50 to 75
Ca!PERS 2019
Experience Study
MP Scale 2021
Until a full I 0-year trend is compiled, only information for those years available is presented. No assets are accumulated in a trust that meets the criteria in paragraph 4 ofGASB 75.
115
Item 3A - Page 130
Tl,is page intentionally left blank.
116
Item 3A - Page 131

SUPPLEMENTARY INFORMATION
117
Item 3A - Page 132
City of Palm Springs
Schedule of Reveuues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure J Capital Projects Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Bud~eted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes $ 22,520,046 $ 22,520,046 $ 21,490,339 $ (1,029,707) Use of money and property 250,000 250,000 1,519,503 1,269,503 Total revenues 22,770,046 22,770,046 23,009,842 239,796 EXPENDITURES:

Current:

Public works 750,000 1,391,098 692,130 698,968
Capital outlay 26,762,557 58,477,214 15,602,020 42,875,194 Total expenditures 27,512,557 59,868,312 16,294,150 43,574,162

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (4,742,511) (37,098,266) 6,715,692 43,813,958 OTHER FINANCING SOURCES (USES):

Transfers in 853,306 853,306
Transfers out (3,133,700) (3,133,700) (3,133,700)
Total other financing sources (uses) (3, 133, 700) (3,133,700) (2,280,394) 853,306 NET CHANGE IN FUND BALANCE $ (7,876,211) $ (40,231,966) 4,435,298 $ 44,667,264 FUND BALANCE:

Beginning of year 39,070,325
End of year $ 43,505,623
119
Item 3A - Page 133
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 19,687,400 $ 48,086,400 $ 25,047,681 $ (23,038,719) Use of money and property 215,000 215,000 819,380 604,380 Charges for services 100,000 100,000 385,250 285,250
Miscellaneous 169,347 169,347
Total revenues 20,002,400 48,401,400 26,421,658 (21,979,742) EXPENDITURES:

Current:

Public Safety 1,959,762 350,454 1,609,308
Capital outlay 48,004,682 131,022,504 30,921,210 !00,101,294 Debt service
Principal retirement 440,148 440,148 438,810 1,338
Interest and fiscal charges 18,038 18,038 19,377 (1,339) Total expenditures 48,462,868 133,440,452 31,729,851 !0!,710,601

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (28,460,468) (85,039,052) (5,308,193) 79,730,859 OTHER FINANCING SOURCES (USES):

Transfers in 18,399,000 26,998,000 14,499,000 (12,499,000) Transfers out (853,306) (853,306)
Total other financing sources (uses) 18,399,000 26,998,000 13,645,694 (13,352,306) NET CHANGE IN FUND BALANCE $ (10,061,468) $ (58,041,052) 8,337,501 $ 66,378,553 FUND BALANCE:

Beginning of year 16,926,631
End of year $ 25.264,132
120
Item 3A - Page 134

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues that are legally restricted or committed to expenditures for particular purposes.

Forfeiture Fund - To account for revenues and costs related to special narcotics investigations and seizure of assets as a result of these investigations.

Safety Augmentation Fund - To account for revenues and costs related to Proposition 172, which authorized a special 1/2% sales tax to be used for safety purposes only.

CSA 152 Fund - To account for revenues and costs related to the implementation of the National Pollutant Discharge Elimination System. This program is designed to reduce pollutants entering the various storm channels and washes throughout the community.

Recycling AB 929 Fund- To account for revenues and costs related to the operations of the City's recycling activities.

Gas Tax Fund - To account for revenues received fonn the State of California and other sources to be used for street maintenance and improvements only.

Measure A Improvements Fund - To account for revenue received from the State of California from a special 1.2% sales tax to be used for street maintenance and improvements only.

Drainage Construction Fund - To account for revenue received from fees assessed on new construction for purposes of building and maintaining a drainage and flood control system within the City.

Community Development Block Grant Fund - To account for revenue and costs related to the activities approved and funded by the Community Development Block Grant Program.

Air Quality Management Fund - To account for revenue received from the County for enacting air quality improvement policies.

Public Arts Fund - To account for fees collected on new constructions with expenditures restricted for procuring art objects for public benefit.

Library Fund - To account for revenues received which are restricted for use on library facilities.

Quimby Act Fees Fund - To account for revenues and costs related to the Quimby Act Park Fees which are restricted to pay for future parks and recreational activities.

Special Projects Fund - To account for revenue and expenditures of deposits received from developers on a project specific basis.

CFD Public Safety #I Fund - To account for revenues and related costs pertaining to special taxes levied in a community facilities district within the City.

Park Maintenance District Fund - To account for revenues and related costs for the special assessments levied for the various Landscape, Lighting and Parkway Maintenance Districts within the City.

Emergency Response Fund - To account for revenues and expenditures for 911 emergency responses.

Sustainability Fund - To account for revenues and related costs for sustainability.

Housing Fund ~ To account for housing fund of the former redevelopment agency and new funding received for expenditures related to the development of facilities within the City for citizens oflow or moderate income as required by California Redevelopment Law.

Small Hotel TBID Fund - To account for the self-imposed 1 % assessment on taxable rent for all hotels and motels of a size of 49 rooms and fewer, where the funds are transferred monthly to a Small Hotels Tourism organization for the specific purpose of promoting tourism of the small hotels.
121
Item 3A - Page 135
NONMAJOR GOVERNMENTAL FUNDS (Continued)
SPECIAL REVENUE FUNDS (Continued)
SBI-RMRA Fund - To account for the revenues received under Senate Bill I (SB!), identified as "The Road Repair and Accountability Act of2017" that assess fees for local street and road funds allocated through the Highway Users Tax Account and Road Maintenance and Rehabilitation Account (RMRA).

Opioids Settlement Fund - To account for the revenues received as a result of two opioid settlement agreements that are restricted to fund opioid abatement measures.

CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the purchase or construction of major capital facilities which are not financed by Proprietary Funds or Trust Funds, Capital Projects Funds are ordinarily not used to account for the acquisition of furniture, fixtures, machinery and equipment, and other relatively minor or comparatively short-lived capital assets.

Parking Projects Fund - To account for payments into the Fund from in lieu parking fee charges, and to account for the capital expenditures for parking improvements.

CFD Canyon View Fund - To account for revenues and related costs pertaining to special taxes levied in a Community Facilities District within the City.

DEBT SERVICE FUNDS
Debt Service Funds are used to accumulate resources for the payment of principal and interest on long-term debt for the City.

Special Assessments Fund - To account for the payment of principal and interest on 1915 Act Assessment District Bond issues.

General Debt Service Fund - To account for the payment of principal and interest on long-term debt for the City. 122
Item 3A - Page 136
City of Palm Springs
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
Safety Recycling
Forfeiture Augmentation CSA 152 AB929
ASSETS
Cash and investments $ 310,578 $ 3,950,698 $ 130,602 $ 991,958 Accounts receivable 9,905 133,461 98,701 45,809
Interest receivable 679 9,273 113 1,809
Loans and notes
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets $ 321 162 $ 4.093 432 $ 229 416 $ I 039 576

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ $ 29,913 $ 8,650 $ 12,647
Accrued liabilities 10,072 851 3,254
Deposits
Unearned revenues
Total liabilities 39,985 9,501 15,901
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
Fund balances:

Restricted 321,162 4,053,447 219,915 1,023,675
Assigned
Total fund balances 321,162 4,053,447 219,915 1,023,675 Total liabilities, deferred inflows of
resources and fund balances $ 321 162 $ 4 093 432 $ 229416 $ I 039 576 (Continued)
123
Item 3A - Page 137
City of Palm Springs
Combining Balance Sheet (Continued)
Nonmajor Governmental Fonds
June 30, 2024
Special Revenue Funds
Community
Gas Measure A Drainage Development
Tax Improvements Construction Block Grant
ASSETS
Cash and investments $ 3,418,455 $ 11,857,911 $ 2,386,288 $ 115,842 Accounts receivable 104,823 1,691,340 175,283
Interest receivable 7,690 26,349 5,881
Loans and notes
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets $ 3.530 968 $ 13.575.600 $ 2.392 169 $ 291 125

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 15,579 $ 321,434 $ 498,892 $ 194,014 Accrued liabilities 256 929
Deposits
Unearned revenues
Total liabilities 15,835 322,363 498,892 194,014
Deferred inflows of resources:

Unavailable revenues 524,608
Total deferred inflows of resources 524,608
Fund balances:

Restricted 3,515,133 12,728,629 1,893,277 97,111
Assigned
Total fund balances 3,515,133 12,728,629 1,893,277 97,111 Total liabilities, deferred inflows of
resources and fund balances $ 3 530 968 $ 13.575.600 $ 2.392 169 $ 291 125 (Continued)
124
Item 3A - Page 138
City of Palm Springs
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Loans and notes
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable
Accrued liabilities
Deposits
Unearned revenues
Total liabilities
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
Fund balances:

Restricted
Assigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
$
$
$
$
Air Quality
Management
189,144
452
189 596
11,126
11,126
178,470
178,470
189.596
125
$
$
$
$
Public Arts
819,212
1,922
821 134
3,500
3,500
817,634
817,634
821 134
$
$
$
$
Library
1,690,104
3,958
I 694 062
3,000
3,000
1,691,062
1,691,062
1 694 062
$
$
$
$
Quimby Act
Fees
3,557,502
8,482

3.565 984
46,052
358
46,410
3,519,574
3,519,574

3.565 984
(Continued)
Item 3A - Page 139
City of Palm Springs
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
Park
Special CFD Public Maintenance Emergency
Projects Safety #1 District Response
ASSETS
Cash and investments $ 1,842,594 $ 2,382,453 $ 897,600 $ 747,240 Accounts receivable 16,029 9,701 102,838
Interest receivable 4,410 4,976 1,922 2,488
Loans and notes
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets $ l.847 004 $ 2.403.458 $ 909 223 $ 852.566

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 11,072 $ $ 61,856 $ 84,113
Accrued liabilities 5,808 2,067
Deposits
Unearned revenues
Total liabilities 11,072 5,808 63,923 84,113
Deferred inflows of resources:

Unavailable revenues 3,393
Total deferred inflows of resources 3,393
Fund balances:

Restricted 1,835,932 2,397,650 841,907 768,453
Assigned
Total fund balances 1,835,932 2,397,650 841,907 768,453 Total liabilities, deferred inflows of
resources and fund balances $ l 847 004 $ 2.403 458 $ 909.223 $ 852.566 (Continued)
126
Item 3A - Page 140
City of Palm Springs
Combining Balance Sheet (Continned)
Nonmajor Governmental Fnnds
June 30, 2024
Special Revenue Funds
Small Hotel
Sustainability Housing TBID SBI-RMRA
ASSETS
Cash and investments $ 2,234,893 $ 842,016 $ 136,892 $ 2,808,868 Accounts receivable 137,426 92,159 92,019
Interest receivable 4,976 1,922 113 6,107
Loans and notes 19,177,921
Land held for resale 86,253
Restricted assets:

Cash and investments with fiscal agents
Total assets $ 2 377 295 $ 20 108,112 $ 229 164 $ 2,906.994

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 829 $ 3,014 $ 219,061 $ 482,209
Accrued liabilities 2,715
Deposits 57,764
Unearned revenues
Total liabilities 3,544 60,778 219,061 482,209
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
Fund balances:

Restricted 2,373,751 20,047,334 10,103 2,424,785
Assigned
Total fund balances 2,373,751 20,047,334 10,103 2,424,785 Total liabilities, deferred inflows of
resources and fund balances $ 2 377.295 $ 20108.112 $ 229 164 $ 2.906 994 (Continued)
127
Item 3A - Page 141
City of Palm Springs
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Debt Service
Revenue Fund Capital Projects Funds Fund
Opioids Parking CFD Canyon Special
Settlement Projects View Assessments
ASSETS
Cash and investments $ 238,702 $ 582,920 $ 17,551 $ 1,355,528 Accounts receivable 88,382 12,081
Interest receivable 565 1,357 1,244
Loans and notes
Land held for resale
Restricted assets:

Cash and investments with fiscal agents 278,123
Total assets $ 327 649 $ 584 277 $ 17 551 $ 1.646.976

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ $ $ $ 3,920
Accrued liabilities
Deposits
Unearned revenues 324,256
Total liabilities 324,256 3,920
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
Fund balances:

Restricted 3,393 584,277 17,551 1,643,056
Assigned
Total fund balances 3,393 584,277 17,551 1,643,056
Total liabilities, deferred inflows of
resources and fund balances $ 327 649 $ 584 277 $ 17 551 $ 1.646.976 (Continued)
128
Item 3A - Page 142
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Loans and notes
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets
City of Palm Springs
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable
Accrued liabilities
Deposits
Unearned revenues
Total liabilities
Deferred inflows of resources:

Unavailable revenues
Total deferred inflows of resources
Fund balances:

Restricted
Assigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
129
$
$
$
$
Debt Service
Fund
General Debt
Service
5,810,656 $
10,743
4,418
5825817 $
2,500 $
2,500
4,418
5,818,899
5,823,317
5825817 $
Total Nonmajor
Governmental
Funds
49,316,207
2,809,957
107,431
19,177,921
86,253
282,541

71.780 310
2,013,381
26,310
57,764
324,256
2,421,711
528,001
528,001
63,011,699
5,818,899
68,830,598

71.780.310
(Concluded)
Item 3A - Page 143
City of Palm Springs
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
Safety Recycling
Forfeiture Augmentation CSA 152 AB929
REVENUES:

Taxes $ $ $ 354,481 $
Intergovernmental 1,734,412 122,267
Licenses and pennits
Fines and forfeitures 28,125
Use of money and property · 11,793 124,875 889 19,519
Charges for services 166,707 443,879
Miscellaneous
Total revenues 39,918 2,025,994 355,370 585,665
EXPENDITURES:

Current:

General government 281,552
Public safety 3,000 1,143,575
Cultural and convention center
Public works 249,706
Library
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures 3,000 1,143,575 249,706 281,552

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 36,918 882,419 105,664 304,113
OTHER FINANCING SOURCES:

Transfers in 152,411
Total other financing sources 152,411
NET CHANGES IN FUND BALANCES 36,918 882,419 105,664 456,524 FUND BALANCES:

Beginning of year, as previously reported 284,244 3,171,028 114,251 567,151 Change in the financial reporting entity
(major fund to nonmajor fund)
Beginning of year, as restated (Note 14) 284,244 3,!7!,028 114,251 567,151 End of year $ 321,162 $ 4,053,447 $ 219,915 $ 1,023,675 (Continued)
130
Item 3A - Page 144
City of Palm Springs
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
Community
Gas Measure A Drainage Development
Tax Improvements Construction Block Graot
REVENUES:

Truces $ $ $ $
Intergovernmental 1,112,071 5,948,162 758,861
Licenses and pennits 209,451
Fines and forfeitures
Use of money and property· 101,095 376,084 105,398
Charges for services 412
Miscellaneous
Total revenues 1,213,166 6,324,246 314,849 759,273
EXPENDITURES:

Current:

General government 429,143
Public safety
Cultural and convention center
Public works 293,157
Library
Capital outlay 124,946 3,029,202 913,189 299,110
Debt service:

Principal retirement 10,421
Interest and fiscal charges
Total expenditures 124,946 3,332,780 913,189 728,253

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,088,220 2,991,466 (598,340) 31,020 OTHER FINANCING SOURCES:

Transfers in 114,954
Total other financing sources 114,954
NET CHANGES IN FUND BALANCES 1,088,220 2,991,466 (598,340) 145,974 FUND BALANCES:

Beginning of year, as previously reported 2,426,913 9,737,163 2,491,617 (48,863) Change in the financial reporting entity
(major fund to nonmajor fund)
Beginning of year, as restated (Note 14) 2,426,913 9,737,163 2,491,617 (48,863) End of year $ 3,515,133 $ 12,728,629 $ 1,893,277 $ 97,111 (Continued)
131
Item 3A - Page 145
City of Palm Springs
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
Air Quality Quimby Act
Improvement Public Arts Library Fees
REVENUES:

Taxes $ $ $ $
Intergovernmental 44,475
Licenses and pennits
Fines and forfeitures
Use of money and property 6,799 53,692 72,355 160,793
Charges for services 239,476 386,437
Miscellaneous 3,242
Total revenues 51,274 293,168 75,597 547,230
EXPENDITURES:

Current:

General government
Public safety
Cultural and convention center 147,732
Public works 36,799
Library 172,972
Capital outlay 762,666 634,986
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures 36,799 910,398 172,972 634,986

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 14,475 (617,230) (97,375) (87,756) OTHER FINANCING SOURCES:

Transfers in
Total other financing sources
NET CHANGES IN FUND BALANCES 14,475 (617,230) (97,375) (87,756) FUND BALANCES:

Beginning of year, as previously reported 163,995 1,434,864 1,788,437 3,607,330 Change in the financial reporting entity
(major fund to nonmajor fund)
Beginning of year, as restated (Note 14) 163,995 1,434,864 1,788,437 3,607,330 End of year $ 178,470 $ 817,634 $ 1,691,062 $ 3,519,574 (Continued)
132
Item 3A - Page 146
City of Palm Springs
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
Park
Special CFD Public Maintenance Emergency
Projects Safety #I District Response
REVENUES:

Taxes $ $ 1,320,596 $ $
Intergovernmental
Licenses and pennits
Fines and forfeitures
Use of money and property 96,475 64,084 29,027 13,760
Charges for services 351,070 1,287,264
Miscellaneous 8,089 5,223 596
Total revenues 104,564 1,389,903 380,097 1,301,620
EXPENDITURES:

Current:

General government
Public safety 522,542 732,042 679,252
Cultural and convention center
Public works 261,072 256,176
Library
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures 783,614 732,042 256,176 679,252

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (679,050) 657,861 123,921 622,368
OTHER FINANCING SOURCES:

Transfers in
Total other financing sources
NET CHANGES IN FUND BALANCES (679,050) 657,861 123,921 622,368 FUND BALANCES:

Beginning of year, as previously reported 2,514,982 1,739,789 717,986 146,085 Change in the financial reporting entity
(major fund to nonmajor fund)
Beginning of year, as restated (Note 14) 2,514,982 1,739,789 717,986 146,085 End of year $ 1,835,932 $ 2,397,650 $ 841,907 $ 768,453 (Continued)
133
Item 3A - Page 147
City of Palm Springs
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
Small Hotel
Sustainability Housing TBID SBI-RMRA
REVENUES:

Taxes $ $ $ 871,612 $
Intergovernmental 56,851 1,220,440
Licenses and pennits
Fines and forfeitures
Use of money and property 63,790 458,289 992 79,020
Charges for services 613,855
Miscellaneous 850 362,128
Total revenues 735,346 820,417 872,604 1,299,460
EXPENDITURES:

Current:

General government 220,385
Public safety
Cultural and convention center 872,158
Public works 232,369
Library
Capital outlay 36,367 851,787
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures 268,736 220,385 872,158 851,787

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 466,610 600,032 446 447,673
OTHER FINANCING SOURCES:

Transfers in 354,431 1,030,644
Total other financing sources 354,431 1,030,644
NET CHANGES IN FUND BALANCES 821,041 1,630,676 446 447,673 FUND BALANCES:

Beginning of year, as previously reported 1,552,710 18,416,658 9,657 1,977,112 Change in the financial reporting entity
(major fund to nonmajor fund)
Beginning of year, as restated (Note 14) 1,552,710 18,416,658 9,657 1,977,112 End of year $ 2,373,751 $ 20,047,334 $ 10,103 $ 2,424,785 (Continued)
134
Item 3A - Page 148
City of Palm Springs
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Debt Service
Revenue Fund Capital Projects Funds Fund
Opioids Parking CFD Canyon Special
Settlement Projects View Assessments
REVENUES:

Taxes $ $ $ $ 546,777
Intergovernmental
Licenses and pennits
Fines and forfeitures
Use of money and property 6,857 14,031 688 24,91 I
Charges for services
Miscellaneous
Total revenues 6,857 14,031 688 571,688
EXPENDITURES:

Current:

General government
Public safety
Cultural and convention center
Public works
Library
Capital outlay
Debt service:

Principal retirement 425,000
Interest and fiscal charges 137,411
Total expenditures 562,411

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 6,857 14,031 688 9,277
OTHER FINANCING SOURCES:

Transfers in
Total other financing sources
NET CHANGES IN FUND BALANCES 6,857 14,031 688 9,277
FUND BALANCES:

Beginning of year, as previously reported (3,464) 570,246 16,863 1,633,779 Change in the financial reporting entity
(major fund to nonmajor fund)
Beginning of year, as restated (Note 14) (3,464) 570,246 16,863 1,633,779 End of year $ 3,393 $ 584,277 $ 17,551 $ 1,643,056
(Continued)
135
Item 3A - Page 149
City of Palm Springs
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
REVENUES:

Taxes
Intergovernmental
Licenses and pennits
Fines and forfeitures
Use of money and property
Charges for services
Miscellaneous
Total revenues
EXPENDITURES:

Current:

General government
Public safety
Cultural and convention center
Public works
Library
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:

Transfers in
Total other financing sources

NET CHANGES IN FUND BALANCES
FUND BALANCES:

Beginning of year, as previously reported
Change in the financial reporting entity
(major fund to nonmajor fund)
Beginning of year, as restated (Note 14)
End of year
For the Year Ended June 30, 2024
$
$
136
Debt Service
Fund
General Debt
Service
119,581
119,581
7,886,289
2,878,014
10,764,303
(10,644,722)
9,904,082
9,904,082
(740,640)
6,563,957
6,563,957
5,823,317
$
$
Total Nonmajor
Governmental
Funds
3,093,466
10,997,539
209,451
28,125
2,004,797
3,489,100
380,128
20,202,606
931,080
3,080,411
1,019,890
1,329,279
172,972
6,652,253
8,321,710
3,015,425
24,523,020
(4,320,414)
11,556,522
11,556,522
7,236,108
55,030,533
6,563,957
61,594,490
68,830,598
(Concluded)
Item 3A - Page 150
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Forfeiture Special Revenue Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines and forfeitures $ $ $ 28,125 $ 28,125
Use of money and property 3,000 3,000 11,793 8,793
Total revenues 3,000 3,000 39,918 36,918
EXPENDITURES:

Current:

Public safety 169,046 169,046 3,000 166,046
Total expenditures 169,046 169,046 3,000 166,046
NET CHANGE IN FUND BALANCE $ (I 66,046) $ (I 66,046)
========
36,918 $ 202,964
FUND BALANCE:

Beginning of year 284,244
End of year $ 321.162
137
Item 3A - Page 151
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Safety Augmentation Special Revenue Fund
REVENUES:

Intergovernmental
Use of money and property
Charges for services
Total revenues
EXPENDITURES:

Current:

Public safety
Capital outlay
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Euded June 30, 2024
Budgeted Amounts
Original Final
$ 1,400,000 $ 1,400,000
21,140 21,140
1,421,140 1,421,140
1,147,719 1,147,719
30,000 30,000
1,177,719 1,177,719
$ 243,421 $ 243,421
138
Variance with
Final Budget
Actual Positive
Amounts {Negative)
$ 1,734,412 $ 334,412
124,875 103,735
166,707 166,707
2,025,994 604,854
1,143,575 4,144
30,000
1,143,575 34,144
882,419 $ 638,998
3,171,028
$ 4.053 447
Item 3A - Page 152
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CSA 152 Special Revenue Fund
REVENUES:

Taxes
Use of money and property
Total revenues
EXPENDITURES:

Current:

Public works
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Bud~eted Amounts
Original Final
$ 470,400 $ 470,400
470,400 470,400
311,182 311,182
311,182 311,182
$ 159,218 $ 159,218
139
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 354,481 $ (115,919)
889 889
355,370 (115,030)
249,706 61,476
249,706 61,476
105,664 $ (53,554)
114,251
$ 219 915
Item 3A - Page 153
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Recycling AB 929 Special Revenue Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 35,867 $ 35,867 $ 122,267 $ 86,400
Use of money and property 12,845 12,845 19,519 6,674
Charges for services 198,464 198,464 443,879 245,415
Total revenues 247,176 247,176 585,665 338,489
EXPENDITURES:

Current:

General government 399,587 416,416 281,552 134,864
Total expenditures 399,587 416,416 281,552 134,864

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (152,41 I) (169,240) 304,113 473,353 OTHER FINANCING SOURCES:

Transfers in 152,411 152,411 152,411
Total Other Financing Sources 152,411 152,411 152,411
NET CHANGE IN FUND BALANCE $ $ (16,829) 456,524 $ 473,353 FUND BALANCE:

Beginning of year 567,151
End of year $ 1,023.675
140
Item 3A - Page 154
City of Palm Springs
Schedule ofReveuues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 1,394,633 $ 1,394,633 $ 1,112,071 $ (282,562) Use of money and property 101,095 101,095
Total revenues 1,394,633 1,394,633 1,213,166 (181,467)
EXPENDITURES:

Capital outlay 1,000,176 3,256,995 124,946 3,132,049
Total expenditures 1,000,176 3,256,995 124,946 3,132,049 NET CHANGE IN FUND BALANCE $ 394,457 $ (1,862,362) 1,088,220 $ 2,950,582 FUND BALANCE:

Begilming of year 2,426,913
End of year $ 3,515,133
141
Item 3A - Page 155
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure A Improvements Special Revenue Fund
REVENUES:

Intergovernmental
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public works
Capital outlay
Debt service:

Principal retirement
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Budgeted Amounts
Original Final
$ 7,728,780 $ 7,728,780
150,000 150,000
7,878,780 7,878,780
869,811 1,351,075
8,811,443 27,568,812
9,681,254 28,919,887
$ (1,802,474) $ (21,041,107)
142
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 5,948,162 $ (1,780,618)
376,084 376,084
(150,000)
6,324,246 (1,554,534)
293,157 1,057,918
3,029,202 24,539,610
10,421 (10,421)
3,332,780 25,587,107
2,991,466 $ 24,032,573
9,737,163
$ 12,728,629
Item 3A - Page 156
City of Palm Springs
Schedule of Revenues, Expenditures, aud Changes iu Fund Balance - Budget and Actual Drainage Construction Special Revenue Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Licenses and permits $ 505,000 $ 505,000 $ 209,451 $ (295,549) Use of money and property 20,000 20,000 105,398 85,398
Total revenues 525,000 525,000 314,849 (210,151)
EXPENDITURES:

Capital outlay 617,260 2,171,225 913,189 1,258,036
Total expenditures 617,260 2,171,225 913,189 1,258,036
NET CHANGE IN FUND BALANCE $ (92,260) $ (1,646,225) (598,340) $ 1,047,885 FUND BALANCE:

Beginning of year 2,491,617
End of year $ I 893 277
143
Item 3A - Page 157
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 413,506 $ 413,506 $ 758,861 $ 345,355 Charges for services 412 412
Total Revenues 413,506 413,506 759,273 345,767
EXPENDITURES:

Current:

General government 528,460 608,384 429,143 179,241
Capital outlay 302,866 299,110 3,756
Total expenditures 528,460 911,250 728,253 182,997

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (114,954) (497,744) 31,020 528,764 OTHER FINANCING SOURCES:

Transfers in 114,954 114,954 114,954
Total Other Financing Sources 114,954 114,954 114,954
NET CHANGE IN FUND BALANCE $ $ (382,790) 145,974 $ 528,764 FUND BALANCE:

Beginning of year (48,863)
End of year $ 97 111
144
Item 3A - Page 158
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Air Quality Management Special Revenue Fund
REVENUES:

Intergovernmental
Use of money and property
Total revenues
EXPENDITURES:

Current:

Public works
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Bud~eted Amounts
Original Final
$ 59,008 $ 59,008
1,710 1,710
60,718 60,718
61,929 61,929
61,929 61,929
$ (1,211) =$'===(1=,2=11=)
145
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 44,475 $ (14,533)
6,799 5,089
51,274 (9,444)
36,799 25,130
36,799 25,130
14,475 $ 15,686
163,995
$ 178 470
Item 3A - Page 159
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Arts Special Revenue Fund
REVENUES:

Use of money and property
Charges for services
Total revenues
EXPENDITURES:

Current:

Cultural and convention center
Capital outlay
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Budgeted Amounts
Original Final
$ 7,711 $ 7,711
476,752 476,752
484,463 484,463
216,146 216,146
1,200,000 1,200,000
1,416,146 1,416,146
$ (931,683) $ (931,683)
146
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 53,692 $ 45,981
239,476 (237,276)
293,168 (191,295)
147,732 68,414
762,666 437,334
910,398 505,748
(617,230) $ 314,453
1,434,864
$ 817.634
Item 3A - Page 160
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Library Special Revenue Fund
REVENUES:

Use of money and property
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Library
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Budgeted Amounts
Original Final
$ 27,000 $ 27,000
10,000 13,000
37,000 40,000
1,716,195 1,721,176
1,716,195 1,721,176
$ (1,679,195) $ (1,681,176)
147
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 72,355 $ 45,355
3,242 (9,758)
75,597 35,597
172,972 1,548,204
172,972 1,548,204
(97,375) $ 1,583,801
1,788,437
$ I 691.062
Item 3A - Page 161
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Quimby Act Fees Special Revenue Fund
REVENUES:

Use of money and property
Charges for services
Total revenues
EXPENDITURES:

Capital outlay
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30 2024
Budgeted Amounts
Original Final
$ 55,000 $ 55,000
580,000 580,000
635,000 635,000
3,416,536
3,416,536
$ 635,000 $ (2,781,536)
148
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 160,793 $ 105,793
386,437 (193,563)
547,230 (87,770)
634,986 2,781,550
634,986 2,781,550
(87,756) $ 2,693,780
3,607,330
$ 3519.574
Item 3A - Page 162
City of Palm Springs
Schedule ofReveuues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Projects Special Revenue Fund
REVENUES:

Intergovernmental
Use of money and property
Charges for services
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Public works
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Bud~eted Amounts
Original Final
$ 2,490 $ 2,490
35,152 35,152
213,386 213,386
134,736 134,736
385,764 385,764
435,000 435,000
250,000 250,000
685,000 685,000
$ (299,236) $ (299,236)
149
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ $ (2,490)
96,475 61,323
(213,386)
8,089 (126,647)
!04,564 (281,200)
522,542 (87,542)
261,072 (11,072)
783,614 (98,614)
(679,050) $ (379,814)
2,514,982
$ 1,835,932
Item 3A - Page 163
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD Public Safety #1 Special Reveuue Fund
REVENUES:

Taxes
Use of money and property
Misellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
BudS:eted Amounts
Original Final
$ 1,015,000 $ 1,015,000
15,000 15,000
1,030,000 1,030,000
879,959 880,959
879,959 880,959
$ 150,041 $ 149,041
150
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 1,320,596 $ 305,596
64,084 49,084
5,223 5,223
1,389,903 359,903
732,042 148,917
732,042 148,917
657,861 $ 508,820
1,739,789
$ 2 397 650
Item 3A - Page 164
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Park Maintenance Special Revenue Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ 7,000 $ 7,000 $ 29,027 $ 22,027 Charges for services 192,000 192,000 351,070 159,070
Total revenues 199,000 199,000 380,097 181,097
EXPENDITURES:

Public works 509,983 529,145 256,176 272,969
Total expenditures 509,983 529,145 256,176 272,969
NET CHANGE IN FUND BALANCE $ (310,983) $ (330,145) 123,921 $ 454,066 FUND BALANCE:

Beginning of year 717,986
End of year $ 841.907
151
Item 3A - Page 165
City of Palm Springs
Schedule of Revenues, Expenditures, aud Changes iu Fund Balance - Budget and Actual Emergency Response Special Revenue Fund
REVENUES:

Use of money and property
Charges for services
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Budgeted Amounts
Original Final
$ 2,618 $ 2,618
1,020,000 1,020,000
1,022,618 1,022,618
1,022,618 1,022,618
1,022,618 1,022,618
$ $
152
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 13,760 $ 11,142
1,287,264 267,264
596 596
1,301,620 279,002
679,252 343,366
679,252 343,366
622,368 $ 622,368
146,085
$ 768.453
Item 3A - Page 166
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Sustainability Special Revenue Fund
For the Year Ended Jone 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 24,427 $ 24,427 $ 56,851 $ 32,424
Use of money and property 9,016 9,016 63,790 54,774
Charges for services 338,133 338,133 613,855 275,722
Miscellaneous 850 850
Total revenues 371,576 371,576 735,346 363,770
EXPENDITURES:

Current:

Public works 475,207 488,395 232,369 256,026
Capital outlay 250,800 344,013 36,367 307,646
Total expenditures 726,007 832,408 268,736 563,672

REVENUE OVER
(UNDER) EXPENDITURES (354,431) (460,832) 466,610 927,442 OTHER FINANCING SOURCES:

Transfers in 354,431 354,431 354,431
Total other financing sources 354,431 354,431 354,431
NET CHANGE IN FUND BALANCE $ $ (106,401) 821,041 $ 927,442 FUND BALANCE:

Beginning of year 1,552,710
End of year $ 2 373 751
153
Item 3A - Page 167
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes iu Fund Balance - Budget and Actual Housing Special Revenue Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Bud~eted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ $ $ 458,289 $ 458,289
Miscellaneous 362,128 362,128
Total revenues 820,417 820,417
EXPENDITURES:

Current:

General government 386,919 483,088 220,385 262,703
Total expenditures 386,919 483,088 220,385 262,703

REVENUE OVER
(UNDER) EXPENDITURES (386,919) (483,088) 600,032 1,083,120 OTHER FINANCING SOURCES:

Transfers in 1,030,644 1,030,644
Total other financing sources 1,030,644 1,030,644
NET CHANGE IN FUND BALANCE $ (386,919) $ (483,088) 1,630,676 $ 2,113,764 FUND BALANCE:

Beginning of year 18,416,658
End of year $ 20,047,334
154
Item 3A - Page 168
City of Palm Springs
Schedule ofReveuues, Expenditures, aud Changes in Fund Balance - Budget aud Actual Small Hotel TBID Special Revenue Fund
REVENUES:

TIDCes
Use of money and property
Total revenues
EXPENDITURES:

Current:

Cultural and convention center
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Budgeted Amounts
Original Final
$ 769,046 $ 769,046
769,046 769,046
769,046 769,046
769,046 769,046
$ $
155
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 871,612 $ 102,566
992 992
872,604 103,558
872,158 (103,112)
872,158 (103,112)
446 $ 446
9,657
$ 10.103
Item 3A - Page 169
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual SBl-RMRA Special Revenue Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 1,088,536 $ 1,088,536 $ 1,220,440 $ 131,904 Use of money and property 25,000 25,000 79,020 54,020
Total revenues 1,113,536 1,113,536 1,299,460 185,924
EXPENDITURES:

Capital outlay 1,097,504 2,692,730 851,787 1,840,943
Total expenditures 1,097,504 2,692,730 851,787 1,840,943 NET CHANGE IN FUND BALANCE $ 16,032 $ (1,579,194) 447,673 $ 2,026,867 FUND BALANCE:

Beginning of year 1,977,112
End of year $ 2.424,785
156
Item 3A - Page 170
City of Palm Springs
Schedule of Revenues, Expenditures, aud Changes iu Fund Balance - Budget and Actual Parking Projects Capital Projects Fund
REVENUES:

Use of money and property
Total revenues

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Budgeted Amounts
Original Final
$ 8,500 $ 8,500
8,500 8,500
$ 8,500 $ 8,500
157
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 14,031 $ 5,531
14,031 5,531
14,031 $ 5,531
570,246
$ 584 277
Item 3A - Page 171
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD Canyon View Capital Projects Fund
REVENUES:

Use of money and property
Total revenues

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30 2024
Budgeted Amounts
Original Final
$ 135 $
135
$ 135 $
158
Variance with
Final Budget
Actual Positive
Amounts (Negative)
135 $ 688 $ 553
135 688 553
135 688 $ 553
16,863
$ 17,551
Item 3A - Page 172
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Assessments Debt Service Fund
REVENUES:

Taxes
Use of money and property
Total revenues
EXPENDITURES:

Current:

General government
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Budgeted Amounts
Original Final
$ 565,628 $ 565,628
565,628 565,628
25,000 25,000
425,000 425,000
108,640 108,640
558,640 558,640
$ (6,988) $ (6,988)
159
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 546,777 $ (18,851)
24,911 24,911
571,688 6,060
25,000
425,000
137,411 (28,771)
562,411 (3,771)
9,277 $ 2,289
1,633,779
$ 1.643.056
Item 3A - Page 173
City of Palm Springs
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Debt Service Fund
REVENUES:

Use of money and property
Total revenues
EXPENDITURES:

Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:

Transfers in
Total other financing sources

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2024
Budgeted Amounts
Original Final
$ $
8,739,184 8,739,184
2,862,178 2,862,178
11,601,362 11,601,362
(11,601,362) (11,601,362)
9,904,082 9,904,082
9,904,082 9,904,082
$ (1,697,280) $ (1,697,280)
160
$
Actual
Amounts
119,581
119,581
7,886,289
2,878,014
10,764,303
(10,644,722)
9,904,082
9,904,082
(740,640)
6,563,957
5,823,317
Variance with
Final Budget
Positive
(Negative)
$ 119,581
119,581
852,895
(15,836)
837,059
956,640
$ 956,640
Item 3A - Page 174

INTERNAL SERVICE FUND FINANCIAL STATEMENTS
161
Item 3A - Page 175

INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency of a government to other departments or agencies on a cost reimbursement basis.

The City of Palm Springs has the following Internal Service Funds:

Mo/or Vehicle Replacement Fund - To account for costs related to operations of the central garage and fleet maintenance system, which provides vehicles for most of the City departments. Costs are recovered through a monthly user fee charged to City departments.

Facililies Maintenance Fund - To account for costs related to operations and maintenance of City facilities. Costs are recovered through a monthly user fee charged to City departments using the service.

Employee Benefits Fund - To account for public employees' retirement system contributions. Costs are recovered through a monthly employee benefit charge based upon gross payroll.

Risk Management Fund - To account for costs and liabilities related to health, life, dental, disability, and public liability insurance coverage paid by the City on behalf of City employees and the City operating funds. Costs are recovered via monthly charges based upon gross payroll and benefits derived from insurance coverage.

Retiree Hea//h Insurance Fund - To account for the actual payments (excluding implied subsidy) for providing health insurance to qualifying retirees. Costs are recovered by charges to retirees' departments.

Cogeneralion Plan/ Fund - To account for costs of the two cogeneration plants located in the City. Costs are recovered through a user fee based upon electrical consumption. These fees are charged to each department on a monthly basis.

Equipment Replacement Fund- To account for costs related to IT and other equipment for all of the City departments. Costs are recovered through a monthly user fee charged to the City departments. 163
Item 3A - Page 176
City of Palm Springs
Combining Statement of Net Position
All Internal Service Funds
June 30, 2024
Motor Vehicle Facilities Employee Risk
Replacement Maintenance Benefits Management
ASSETS
Current assets:

Cash and investments $ 14,897,795 $ 20,452,136 $ 12,754,099 $ 24,972,606 Receivable:

Accounts 39,334 283,848
Interest 30,760 43,991 22,957 52,812
Inventories 120,718
Total current assets 15,088,607 20,496,127 12,777,056 25,309,266 Noncurrent assets:

Advances to other funds 1,430,000
Capital assets, nondepreciable 3,337,868 2,137,213
Capital assets, net of accumulated depreciation 7,861,654 766,025 Total noncurrent assets 11,199,522 2,903,238 1,430,000
Total assets 26,288,129 23,399,365 14,207,056 25,309,266

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding
Pension related 351,980 698,257 89,551
OPEB related 101,765 132,294
Total deferred outflows of resources 453,745 830,551 89,551

LIABILITIES
Current Liabilities:

Accounts payable 1,000,081 2,182,211 1,154,650 6,094,249 Accrued liabilities 11,629 31,102 36,018
Interest payable 50,126
Compensated absences, due within one year 85,686 245,043 123,221 Claims and judgments, due \vithin one year 4,922,495
Bonds and notes payable, due within one year 584,175
Total OPEB liability, due within one year 41,964 54,553 Total current liabilities 1,773,661 2,512,909 1,154,650 11,175,983 Noncurrent liabilities:

Claims and judgments, due in more than one year 6,211,263 Bonds and notes payable, due in more than one year 3,408,383 Net Pension liability 1,234,372 2,448,742 314,048
Total OPEB liability, due in more than one year 1,052,070 1,370,585 Total noncurrent liabilities 5,694,825 3,819,327 6,525,311 Total liabilities 7,468,486 6,332,236 1,154,650 17,701,294

DEFERRED INFLOWS OF RESOURCES
Pension related 21,140 41,937 5,378
OPEB related 289,063 375,782
Total deferred inflows of resources 310,203 417,719 5,378

NET POSITION
Net investment in capital assets 7,206,964 2,903,238
Unrestricted 11,756,221 14,576,723 13,052,406 7,692,145 Total net position $ 18,963,185 $ 17.479.961 $ 13.052 406 $ 7.692.145 164
Item 3A - Page 177
City of Palm Springs
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2024
Retiree Health Co generation Equipment
Insurance Plant Replacement Total
ASSETS
Current assets:

Cash and investments $ 4,833,221 $ 98,280 $ 560,900 $ 78,569,037 Receivable:

Accounts 1,127 324,309
Interest 9,952 2,036 162,508
Inventories 120,718
Total current assets 4,844,300 100,316 560,900 79,176,572 Noncurrent assets:

Advances to other funds 1,430,000
Capital assets, nondepreciable 5,475,081
Capital assets, net of accumulated depreciation 13,242,780 816,973 22,687,432 Total noncurrcnt assets 13,242,780 816,973 29,592,513
Total assets 4,844,300 13,343,096 1,377,873 108,769,085

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 7,839 7,839
Pension related 1,139,788
OPEB related 234,059
Total deferred outflows of resources 7,839 1,381,686

LIABILITIES
Current Liabilities:

Accounts payable 442,657 2,525 10,876,373
Accrued liabilities 78,749
Interest payable 67,117 117,243
Compensated absences, due within one year 453,950
Claims and judgments, due within one year 4,922,495
Bonds and notes payable, due within one year 1,135,803 1,719,978 Total OPEB liability, due within one year 96,517
Total current liabilities 1,645,577 2,525 18,265,305
Noncurrent liabilities:

Claims and judgments, due in more than one year 6,211,263 Bonds and notes payable, due in more than one year 12,613,694 16,022,077 Net Pension liability 3,997,162
Total OPEB liability, due in more than one year 2,422,655 Total noncurrent liabilities 12,613,694 28,653,157
Total liabilities 14,259,271 2,525 46,918,462

DEFERRED INFLOWS OF RESOURCES
Pension related 68,455
OPEB related 664,845
Total deferred inflows of resources 733,300

NET POSITION
Net investment in capital assets (498,878) 816,973 10,428,297 Unrestricted (deficit) 4,844,300 (409,458) 558,375 52,070,712 Total net position $ 4,844,300 $ (908.336) $ 1 375 348 $ 62.499 009 165
Item 3A - Page 178
City of Palm Springs
Combining Statement of Revenues, Expenses and Changes in Net Position All Internal Service Funds
For the Year Ended June 30 2024
Motor Vehicle Facilities Employee Risk
Replacement Maintenance Benefits Management
OPERATING REVENUES:

Service charges $ I 1,126,683 $ 12,366,839 $ 32,796,625 $ 21,072,592 Miscellaneous 35,632
Total operating revenues 11,126,683 12,402,471 32,796,625 21,072,592 OPERATING EXPENSES:

Administration and general 1,666,697
Maintenance operations 4,422,326
Facilities maintenance 263,924 7,189,319 26,677
Retirement and benefits 28,936,304
Retiree health insurance
Other claims and insurance 9,913 45,952 11,381,627
Depreciation expense 1,373,980 34,340
Material and supplies
Cogeneration electricity
Medical, health, and life insurance 10,927,455
Workers compensation 53,039 118,808 3,557,608
Total operating expenses 6,123,182 7,388,419 28,936,304 27,560,064 OPERATING INCOME (LOSS) 5,003,501 5,014,052 3,860,321 (6,487,472) NONO PERA TING INCOME (EXPENSE):

Intergovernmental 687,226
Investment earning 525,917 657,878 85,294 882,644
Interest expense (369,752)
Gain on disposal of capital assets 187,655
Total nonoperating income (expense) 343,820 657,878 85,294 1,569,870 CHANGES IN NET POSITION 5,347,321 5,671,930 3,945,615 (4,917,602) NET POSITION:

Beginning of the year 13,615,864 11,808,031 9,106,791 12,609,747 End of the year $ 18.963 185 $ 17479961 $ 13.052,406 $ 7.692 145 166
Item 3A - Page 179
City of Palm Springs
Combining Statement of Revenues, Expenses and Changes in Net Position (Continued) All Internal Service Funds
For the Year Ended June 30 2024
Retiree Health Cogeneration Equipment
Insurance Plant Replacement Total
OPERATING REVENUES:

Service charges $ 4,002,452 $ 1,912,748 $ 500,000 $ 83,777,939 Miscellaneous 35,632
Total operating revenues 4,002,452 1,912,748 500,000 83,813,571 OPERATING EXPENSES:

Administration and general 1,666,697
Maintenance operations 4,422,326
Facilities maintenance 861,265 8,341,185
Retirement and benefits 28,936,304
Retiree health insurance 3,602,344 3,602,344
Other claims and insurance 11,437,492
Depreciation expense 631,036 4,717 2,044,073
Material and supplies 866,484 386,284 1,252,768
Cogeneration electricity 1,316,050 1,316,050
Medical, health, and life insurance 10,927,455
Workers compensation 3,729,455
Total operating expenses 3,602,344 3,674,835 391,001 77,676,149 OPERATING INCOME (LOSS) 400,108 (1,762,087) 108,999 6,137,422 NONOPERATING INCOME (EXPENSE):

Intergovernmental 687,226
Investment earning 167,872 73,479 10,116 2,403,200
Interest expense (10,120) (379,872)
Gain on disposal of capital assets 187,655
Total nonoperating income (expense) 167,872 63,359 10,116 2,898,209 CHANGES IN NET POSITION 567,980 (1,698,728) 119,115 9,035,631 NET POSITION:

Beginning of the year 4,276,320 790,392 1,256,233 53,463,378 End of the year $ 4 844 300 $ (908,33§2 $ 1 375 348 $ 62 499 009 167
Item 3A - Page 180
City of Palm Springs
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Motor Vehicle Facilities Employee Risk
Replacement Maintenance Benefits Management

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 11,112,699 $ 12,402,471 $ 32,796,625 $ 21,258,203 Cash paid to suppliers for goods and services (2,935,197) (3,363,952) 4,526,374 Cash paid to employees for services (1,166,638) (2,341,658) (27,795,989) (1,006,617) Cash paid for insurance premium and claims (24,901,677) Net cash provided by (used in) operating activities 7,010,864 6,696,861 5,000,636 (123,717)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash received from other government 687,226
Net cash provided by noncapital financing activities 687,226

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (4,386,425) (2,716,160) 30,129 Proceeds from sale property 211,799
Principal paid on bonds and notes payable (572,320)
Interest paid (375,962)
Net cash used in capital and related financing activities (5,122,908) (2,716,160) 30,129 CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 514,031 645,933 62,337 888,059
Net cash provided by investing activities 514,031 645,933 62,337 888,059 Net change in cash and cash equivalents 2,401,987 4,626,634 5,062,973 1,481,697 CASH AND CASH EQUIVALENTS:

Beginning of year 12,495,808 15,825,502 7,691,126 23,490,909 End of year $ 14,897,795 $ 20,452,136 $ 12,754,099 $ 24,972,606 Reconciliation of Operating Income (Loss) to Net
Cash Provided by (used in) Operating Activities:

Operating income (loss) $ 5,003,501 $ 5,014,052 $ 3,860,321 $ (6,487,472) Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:

Depreciation 1,373,980 34,340
Changes in assets and liabilities:
(Increase)/decrease in accounts receivable (13,984) 185,611 (lncrease)/decrease in prepaid items
(lncrease)/decrease in inventories 27,141
(Increase)/decrease in deferred outflows of resources 127,196 672,477 23,938 Increase/(decrease) in accounts payable 806,556 1,807,433 1,140,315 5,514,759 Increase/( decrease) in accrued liabilities (2,741) 8,077 12,577 Increase/(decrease) in compensated absences (14,770) 40,944 2,996 Increase/(decrease) in claims and judgments 679,133
Increase/( decrease) in net pension liability (227,783) (304,651) (45,094) Increase/(decrease) in total OPEB liability 33,061 55,656 Increase/(decrease) in deferred inflows of resources (101,293) (631,467) (10,165) Net cash provided by (used in) operating activities $ 7,010,864 $ 6,696,861 $ 5,000,636 $ (123,717) 168
Item 3A - Page 181
City of Palm Springs
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2024
Retiree Health Cogeneration Equipment
Insurance Plant Replacement Total

CASH FLOWS FROM OPERA TING ACTIVITIES
Cash received from customers and users $ 4,001,325 $ 1,912,748 $ 500,000 $ 83,984,071 Cash paid to suppliers for goods and services (3,007,022) (518,852) (5,298,649) Cash paid to employees for services (32,310,902)
Cash paid for insurance premium and claims (3,603,01 I) (28,504,688) Net cash provided by (used in) operating activities 398,314 (1,094,274) (18,852) 17,869,832

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash received from other government 687,226
Net cash provided by noncapital financing activities 687,226

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (66,044) (7,138,500)
Proceeds from sale property 211,799
Principal paid on bonds and notes payable (1,064, 700) (1,637,020) Interest paid (31,836) (407,798)
Net cash used in capital and related financing activities (1,096,536) (66,044) (8,971,519) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 167,162 80,331 10,116 2,367,969
Net cash provided by investing activities 167,162 80,331 10,116 2,367,969 Net change in cash and cash equivalents 565,476 (2,110,479) (74,780) 11,953,508 CASH AND CASH EQUIVALENTS:

Beginning of year 4,267,745 2,208,759 635,680 66,615,529 End of year $ 4,833,221 $ 98,280 $ 560,900 $ 78,569,037 Reconciliation of Operating Income (Loss) to Net
Cash Provided by (used in) Operating Activities:

Operating income (loss) $ 400,108 $ (I, 762,087) $ 108,999 $ 6,137,422 Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:

Depreciation 631,036 4,717 2,044,073
Changes in assets and liabilities:
(Increase)/decrease in accounts receivable (1,127) 170,500 (Increase)/decrease in prepaid items
(Increase)/decrease in inventories 27,141
(Increase)/decrease in deferred outflows of resources 823,611 Increase/( decrease) in accounts payable (667) 36,777 (132,568) 9,172,605 Increase/( decrease) in accrued liabilities 17,913
Increase/( decrease) in compensated absences 29,170
Increase/(decrease) in claims and judgments 679,133
Increase/(decrease) in net pension liability (577,528)
Increase/(decrease) in total OPEB liability 88,717
Increase/(decrease) in deferred inflows of resources (742,925) Net cash provided by (used in) operating activities $ 398,314 $ (1,094,274) $ (18,852) $ 17,869,832 169
Item 3A - Page 182
Tltis page intelllionally left blanK.
170
Item 3A - Page 183
Item 3A - Page 184
City of Palm Springs
Statistical Section Overview
(Unaudited)
This part of the City of Palm Springs' Annual Comprehensive Financial Report presents detailed information as a context for understanding what the infonnation in the financial statements, note disclosures and required supplementary infonnation says about the government's overall financial health.

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

Revenue Capacity
These schedules contain information to help the reader assess one of the government's most significant local revenue sources - property tax.

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

Demographic and Economic Information
This schedule offers demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs.
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186-192
193-194
195-199
Item 3A - Page 185
City of Palm Springs
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2024 2023 2022 2021 2020
Governmental activities:

Net investment in capital assets $ 286,183,654 $ 213,373,059 $195,148,344 $194,166,383 $201,149,733 Restricted 63,011,699 55,085,524 43,348,048 49,665,666 77,064,027 Unrestricted (8,746,409) (16,730,536) (70,309,246) (162,081,376) (233,042,836) Total governmental activities net position $ 340,448,944 $251,728,047 $168,187,146 $ 81,750,673 $ 45,170,924 Business-type activities:

Net investment in capital assets $144,351,287 $120,119,678 $ 112,632,195 $ 108,473,977 $ 82,416,136 Restricted 3,054,721 4,934,667 3,329,027 2,897,901 19,464,837 Unrestricted 130,979,256 121,139,306 80,543,230 57,234,21 I 63,282,450 Total business-type activities net position $278,385,264 $246,193,651 $ 196,504,452 $ 168,606,089 $165,163,423 Primary government:

Net investment in capital assets $ 430,534,94 l $333,492,737 $307,780,539 $ 302,640,360 $ 283,565,869 Restricted 66,066,420 60,020,191 46,677,075 52,563,567 96,528,864 Unrestricted 122,232,847 104,408,770 10,233,984 (104,847,165) (169,760,386) Total primary government net position $ 618,834,208 $497,921,698 $364,691,598 $250,356,762 $210,334,347 Source: City of Palm Springs, Finance Department
172
Item 3A - Page 186
City of Palm Springs
Net Position by Component (Continued)
Last Ten Fiscal Years
Governmental activities:

Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business-type activities:

Net investment in capital assets
Restricted
Unrestricted
Total business-type activities net position
Primary government:

Net investment in capital assets
Restricted
Unrestricted
(accrual basis of accounting)
Fiscal Year
2019 2018 2017
$ 148,845,833 $141,219,883 $120,745,654
43,201,882 37,220,218 41,363,491
(202,893,159) (212,859,813) (104,511,647)
$ (10,845,444) $ (34,419,712) $ 57,597,498
$ 97,712,572 $ 104,660,531 $ 102,297,901
7,371,373 4,884,179 4,022,467
60,133,921 42,880,602 33,781,069
$165,217,866 $ 152,425,312 $140,101,437
$ 246,558,405 $ 245,880,414 $ 223,043,555
50,573,255 42,104,397
(142,759,238) (169,979,211)
45,385,958
(70,730,578)
2016
$ 126,124,062
41,633,373
(103,317,463)
$ 64,439,972
$ 98,280,993
5,307,758
30,918,220
$134,506,971
$224,405,055
46,941,131
(72,399,243)
2015
$106,475,801
50,159,957
(102,730,809)
$ 53,904,949
$ 90,467,867
4,125,236
22,023,465
$116,616,568
$ 196,943,668
54,285,193
(80,707,344)
Total primary government net position $154,372,422 $118,005,600 $197,698,935 $198,946,943 $170,521,517 Source: City of Palm Springs, Finance Department
173
Item 3A - Page 187
City of Palm Springs
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2024 2023 2022 2021 2020
Expenses:

Governmental activities:

General government $ 37,081,736 $ 38,037,310 $ 19,400,905 $ 23,064,805 $ 21,838,398 Public safety 82,950,898 70,599,261 62,729,858 62,790,098 65,927,910 Cultural and convention center 12,527,860 12,024,987 10,685,109 8,701,458 9,208,504 Parks and recreation 14,967,421 11,897,817 10,527,534 10,417,370 10,224,630 Public works 26,589,099 18,619,335 23,103,890 19,367,549 26,286,051 Library 3,388,540 3,005,061 2,693,467 2,639,183 2,793,479 Interest on long-term debt 4,176,711 3,939,384 5,174,676 6,065,747 6,483,060 Total governmental activities expenses 181,682,265 158,123,155 134,315,439 133,046,210 142,762,032 Business-type activities:

Airport 41,034,820 30,857,869 24,203,153 29,121,612 29,897,619 Wastewater 8,965,236 8,927,516 9,567,033 8,940,635 8,801,889 Golf Course 5,841,678 5,536,030 5,373,731 4,786,833 5,185,383 Total business-type activities expenses 55,841,734 45,321,415 39,143,917 42,849,080 43,884,891 Total primary government expenses 237,523,999 203,444,570 173,459,356 175,895,290 186,646,923 Program revenues:

Governmental activities:

Charges for services:

General government 14,636,077 15,460,319 15,173,309 11,775,694 7,387,666 Public safety 3,704,313 3,514,731 2,582,957 2,911,245 3,308,726 Cultural and convention center
Parks and recreation 3,348,791 2,941,384 3,523,378 2,870,786 1,631,055 Public works 3,836,827 3,850,293 4,208,931 3,288,955 17,416,141 Library 44,606 39,705 41,246 4,983 15,804
Operating grants and contributions 11,071,457 9,851,556 9,338,910 6,834,245 14,906,252 Capital grants and contributions 48,711,540 23,853,364 10,298,014 8,184,645 1,635,273 Total governmental activities
program revenues 85,353,611 59,511,352 45,166,745 35,870,553 46,300,917 Business-type activities:

Charges for services:

Airport 59,158,970 52,293,997 42,934,803 23,043,916 28,636,927 Wastewater 11,944,343 11,669,093 12,233,664 12,358,649 11,595,926 Golf Course 5,937,059 5,696,556 5,271,752 3,550,751 4,206,028 Operating grants and contributions 3,588,083 23,312,203 7,192,602 8,912,450 5,904,934 Capital grants and contributions
Total business-type activities
program revenues 80,628,455 92,971,849 67,632,821 47,865,766 50,343,815 Total primary government
program revenues 165,982,066 152,483,201 112,799,566 83,736,319 96,644,732 174
Item 3A - Page 188
City of Palm Springs
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2024 2023 2022 2021 2020
Net revenues (expenses):

Governmental activities (96,328,654) (98,611,803) (89,148,694) (97,175,657) (96,461,115) Business-type activities 24,786,721 47,650,434 28,488,904 5,016,686 6,458,924 Total net revenues (expenses) (71,541,933) (50,961,369) (60,659,790) (92,158,971) (90,002,191) General revenues and other changes in net position:

Governmental activities:

Truces:

Property taxes 39,075,556 34,673,191 33,134,473 31,148,883 29,739,817 Sales tax 51,395,597 53,549,686 58,626,015 47,291,146 24,312,838 Transient occupancy taxes 51,057,120 55,112,635 54,326,094 35,092,830 25,817,660 Franchise taxes 4,153,894 4,571,990 4,138,935 3,277,733 3,424,711 Utility users taxes 13,688,713 14,988,973 15,627,960 8,284,837 7,025,604 Other taxes 6,980,699 7,823,985 6,543,695 6,542,006 4,270,217 Motor vehicle in lieu, unrestricted 7,382,166 6,739,528 6,141,974 5,703,803 5,418,600 Use of money and property 11,504,633 4,604,988 (2,551,223) 85,682 4,757,768 Other general revenues 492,366 404,509 436,877 158,992 452,161 Gain on sale of capital asset 298,258 (42,781) 284,367 95,252 11,367 Settlement 36,520,000
Transfers (979,451) (400,000) (1,124,000) (2,588,900) (1,479,023) Total governmental activities 185,049,551 182,026,704 175,585,167 135,092,264 140,271,720 Business-type activities:

Use of money and property 6,426,329 1,638,765 (1,714,541) 641,487 1,836,416 Other revenue
Gain (loss) on sale of capital asset (888)
Transfers 979,451 400,000 1,124,000 2,588,900 1,479,023 Total business-type activities 7,404,892 2,038,765 (590,541) 3,230,387 3,315,439 Total primary government 192,454,443 184,065,469 174,994,626 138,322,651 143,587,159 Changes in net position
Governmental activities 88,720,897 83,414,901 86,436,473 37,916,607 43,810,605 Business-type activities 32,191,613 49,689,199 27,898,363 8,247,073 9,774,363 Total primary government $120,912,510 $133,104,100 $ 114,334,836 $ 46,163,680 $ 53,584,968 (Continued)
Source: City of Palm Springs, Finance Department
175
Item 3A - Page 189
City of Palm Springs
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2019 2018 2017 2016 2015
Expenses:

Governmental activities:

General government $ 27,615,740 $ 24,668,184 $ 19,998,488 $ 11,759,819 $ 14,353,882 Public safety 60,644,565 55,465,639 49,397,778 45,219,115 42,911,251 Cultural and convention center 8,941,987 7,473,990 7,454,099 8,293,582 8,041,954 Parks and recreation 10,559,974 10,412,411 9,902,789 7,756,225 9,008,961 Public works 23,159,223 20,620,601 33,476,271 27,299,586 26,799,641 Library 3,009,917 3,196,140 3,238,731 2,909,766 2,308,501 Interest on long-term debt 6,113,954 6,640,855 6,856,841 6,657,372 7,153,434 Total governmental activities expenses 140,045,360 128,477,820 130,324,997 109,895,465 110,577,624 Business-type activities:

Airport 29,585,274 28,715,596 28,961,927 25,300,163 25,811,396 Wastewater 9,601,345 7,455,920 7,009,637 6,539,225 6,693,464 Golf Course 4,948,156 5,208,536 5,141,317 4,972,995 5,370,771 Total business-type activities expenses 44,134,775 41,380,052 41,112,881 36,812,383 37,875,631 Total primary government expenses 184,180,135 169,857,872 171,437,878 146,707,848 148,453,255 Program revenues:

Governmental activities:

Charges for services:

General government 6,687,864 5,784,465 4,966,153 4,019,379 4,151,215 Public safety 4,405,683 4,352,932 3,789,214 3,401,378 3,256,962 Cultural and convention center 157,769 113
Parks and recreation 1,979,848 1,913,540 1,921,560 1,747,440 1,911,290 Public works 8,222,528 6,956,478 5,794,610 5,972,587 4,344,298 Library 20,945 28,287 37,753 42,655 41,075
Operating grants and contributions 7,583,185 3,829,388 2,879,858 4,082,086 3,469,962 Capital grants and contributions 5,215,366 2,633,028 4,188,835 6,823,197 2,936,236 Total governmental activities
program revenues 34,115,419 25,655,887 23,577,983 26,088,835 20,111,038 Business-type activities:

Charges for services:

Airport 30,628,795 28,134,244 25,621,382 24,352,244 23,900,962 Wastewater 12,366,518 12,785,023 11,771,816 10,667,824 9,524,542 Golf Course 4,286,852 4,526,664 4,317,981 4,234,555 4,836,445 Operating grants and contributions
Capital grants and contributions 1,164,219 3,769,554 1,519,902 13,405,121 2,180,401 Total business-type activities
program revenues 48,446,384 49,215,485 43,231,081 52,659,744 40,442,350 Total primary government
program revenues 82,561,803 74,871,372 66,809,064 78,748,579 60,553,388 176
Item 3A - Page 190
City of Palm Springs
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2019 2018 2017 2016 2015
Net revenues (expenses):

Governmental activities (105,929,941) (102,821,933) (106,747,014) (83,806,630) (90,466,586) Business-type activities 4,311,609 7,835,433 2,118,200 15,847,361 2,566,719 Total net revenues (expenses) (101,618,332) (94,986,500) (104,628,814) (67,959,269) (87,899,867) General revenues and other changes in net position:

Governmental activities:

Taxes:

Property taxes 33,422,946 31,291,584 24,535,870 22,245,363 21,294,978 Sales tax 42,903,653 32,956,508 30,971,801 27,681,241 25,367,807 Transient occupancy taxes 36,475,057 34,241,233 28,591,763 25,814,526 24,695,585 Franchise taxes
Utility users taxes
Other taxes 14,586,952 12,777,836 13,111,478 12,939,461 14,687,706 Motor vehicle in lieu, unrestricted 22,899 24,940 4,492,728 4,209,089 3,920,259 Use ·of money and property 5,049,841 1,600,566 1,557,326 2,176,122 2,211,049 Other general revenues 550,676 133,067 68,720 85,881 54,954 Gain on sale of capital asset 215,895 4,680 86,492
Settlement
Transfers (3,723,710) (725,601) (2,245,997) (810,030) (412,270) Total governmental activities 129,504,209 112,304,813 101,083,689 94,341,653 91,906,560 Business-type activities:

Use of money and property 2,236,850 129,407 163,540 323,896 299,716 Other revenue 2,520,385 1,932,380 917,966 909,116 986,504 Gain (loss) on sale ofcapital asset
Transfers 3,723,710 725,601 2,245,997 810,030 412,270
Total business-type activities 8,480,945 2,787,388 3,327,503 2,043,042 1,698,490 Total primary government 137,985,154 115,092,201 104,411,192 96,384,695 93,605,050 Changes in net position
Governmental activities 23,574,268 9,482,880 (5,663,325) 10,535,023 1,439,974 Business-type activities 12,792,554 10,622,821 5,445,703 17,890,403 4,265,209 Total primary government $ 36,366,822 $ 20,105,701 $ (217,622) $ 28,425,426 $ 5,705,183 Source: City of Palm Springs, Finance Department
177
Item 3A - Page 191
City of Palm Springs
Fund Balances of Governmental Funds
Last Ten Fiscal Years
I
(modified accrual basis of accounting)
Fiscal Year
2024 2023 2022 2021 2020
General fund:

Nonspendable $ 1,786,431 $ 2,146,021 $ 1,800,150 $ 2,955,615 $ 1,461,569 Committed 3,211,707 3,211,707
Assigned 46,631,967 34,416,667 28,438,899 26,400,668 16,553,458 Unassigned 96,357,988 113,911,372 101,952,531 52,448,534 30,272,514 Total general fund $ 147,988,093 $ 153,685,767 $ 132,191,580 $ 81,804,817 $ 48,287,541 All other governmental funds:

Restricted 63,011,699 55,085,524 43,304,878 34,213,803 39,189,281 Nonspendable 8,650 588,954
Assigned 74,588,654 62,558,249 52,625,129 36,151,919 36,492,533 Unassigned (52,327) (32,850)
Total all other governmental funds $ 137,600,353 $ 117,591,446 $ 95,930,007 $ 70,374,372 $ 76,237,918 Source: City of Palm Springs, Finance Department
178
Item 3A - Page 192
City of Palm Springs
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2019 2018 2017 2016 2015
General fund:

Nonspendable $ 1,444,569 $ 3,019,428 $ 3,019,428 $ 3,019,428 $ 3,919,428 Committed
Assigned 10,302,670 9,673,725 8,002,942 7,884,694 6,850,022 Unassigned 39,319,971 37,617,037 21,548,391 18,545,979 14,985,654 Total general fund $ 51,067,210 $ 50,310,190 $ 32,570,761 $ 29,450,101 $ 25,755,104 All other governmental funds:

Restricted 43,201,882 37,220,218 41,363,491 41,633,373 50,159,957 Nonspendable
Assigned 38,198,165 23,354,766 21,667,783 14,227,585 14,344,936 Unassigned (2,174,918) (476,099) (23,156) (52,112)
Total all other governmental funds $ 81,400,047 $ 58,400,066 $ 62,555,175 $ 55,837,802 $ 64,452,781 Source: City of Palm Springs, Finance Department
179
Item 3A - Page 193
City of Palm Springs
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2024 2023 2022 2021 2020
Revenues:

Truces $ 176,363,013 $ 180,040,623 $181,209,034 $139,196,155 $ 116,692,441 Licenses and permits 8,495,978 8,608,426 8,756,136 7,382,783 6,692,721 Fines and forfeitures 1,115,929 756,633 591,903 557,012 648,549 Use of money and property 11,287,038 4,301,856 (1,932,332) 199,250 4,166,276 Intergovermnental 54,418,879 32,035,203 23,466,818 9,888,085 6,354,888 Charges for services 11,133,950 12,488,270 12,704,911 10,637,436 9,786,095 Other 1,670,570 1,005,138 1,112,586 1,147,321 1,844,984 Total revenues 264,485,357 239,236,149 225,909,056 169,008,042 146,185,954 Expenditures
Current:

General government 35,002,406 39,331,765 22,906,961 22,227,319 22,293,323 Public safety 79,366,468 77,491,250 64,500,335 55,585,193 55,972,570 Cultural and convention center 9,777,841 9,551,846 8,407,229 7,753,861 8,380,223 Parks and recreation 8,137,367 7,423,487 5,264,398 3,985,179 4,623,367 Public works 25,214,606 22,855,495 20,398,420 16,392,137 75,840,105 Librruy 3,391,626 3,182,194 2,943,458 2,451,714 2,631,408 Capital Outlay• 79,308,778 23,455,843 19,593,816 19,126,087 Debt service:

Principal retirement 10,705,469 9,666,382 61,993,795 39,096,036 5,685,572 Interest and fiscal charges 3,049,869 3,157,518 4,726,046 7,026,678 4,653,184 Payment to bond escrow
Total expenditures 253,954,430 196,115,780 210,734,458 173,644,204 180,079,752 Excess (deficiency) of
revenues over (under) expenditures 10,530,927 43,120,369 15,174,598 (4,636,162) (33,893,798) Other financing sources (uses):

Transfers in 26,908,828 21,102,589 10,994,097 26,973,656 29,772,852 Transfers out (27,888,279) (21,502,589) (12,118,097) (29,138,690) (41,044,301) Debt issued 4,635,556 425,787 61,240,000 33,495,000
Bond premium
Bond discount
Proceeds from sale ofcapital assets 124,201 9,470 651,800 Settlement 36,520,000
Payment to refunded bond escrow agent
Total other financing
sources (uses) 3,780,306 35,257 60,767,800 31,329,966 25,248,551 Extraordinruy gain/loss
Net change in fund balances $ 14,311,233 $ 43,155,626 $ 75,942,398 $ 26,693,804 $ (8,645,247) Capital outlay included in
current expenditures* $ 79,308,778 $ 23,455,843 $ 19,593,816 $ 19,126,087 $ 19,065,442 Debt service as a percentage of
noncapital expenditures 7.9% 7.4% 34.9% 29.8% 6.4%
•starting in the year ended Jillie 30, 2021, !he City started to repoit capital outlay as a separate line item in the Statement of Revenues, Expenditw-es., and Changes in Fwid Balances Source: City of Palm Springs, Finance Department
180
Item 3A - Page 194
City of Palm Springs
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2019 2018 2017 2016 2015
Revenues:

Taxes $ 130,253,883 $ I 06,490,591 $ 97,210,912 $ 88,680,591 $ 86,046,076 Licenses and pennits 6,884,620 6,387,567 5,726,357 4,734,400 4,338,884 Fines and forfeitures 140,420 140,911 251,091 122,741 283,767 Use of money and property 4,318,712 1,707,685 1,550,825 2,069,955 2,130,949 Intergovernmental 9,046,448 10,912,473 15,115,053 8,275,642 9,881,576 Charges for services 11,880,409 11,208,428 9,854,967 8,843,238 8,671,389 Other 5,198,982 2,861,089 2,156,777 3,194,910 2,817,116 Total revenues 167,723,474 139,708,744 131,865,982 115,921,477 114,169,757 Expenditures
Current:

General govermnent 26,046,365 22,983,718 17,186,130 14,514,121 12,639,548 Public safety 50,472,039 45,857,964 44,040,288 39,880,252 38,169,200 Cultural and convention center 4,824,429 4,437,893 4,034,038 5,140,410 4,912,242 Parks and recreation 9,921,817 9,600,331 8,970,655 8,775,698 8,664,379 Public works 29,362,695 27,255,537 28,044,863 37,018,361 30,083,326 Library 2,807,742 2,818,197 2,839,703 2,694,753 3,194,262 Capital Outlay•
Debt service:

Principal retirement 5,876,235 5,652,364 5,657,193 12,266,638 5,219,260 Interest and fiscal charges 4,877,61 I 5,064,358 6,069,043 5,888,573 5,587,476 Payment to bond escrow 7,145,057
Total expenditures 134,188,933 123,670,362 116,841,913 126,178,806 115,614,750 Excess (deficiency) of
revenues over (under) expenditures 33,534,541 16,038,382 15,024,069 (10,257,329) (1,444,993) Other financing sources (uses):

Transfers in 41,432,291 21,227,794 22,671,479 22,844,245 20,793,279 Transfers out (51,209,831) (23,681,856) (27,882,476) (24,193,175) (25,785,113) Debt issued 1,120,195 5,680,000 58,440,000
Bond premium 105,301 1,006,277 5,376,988
Bond discount (59,946)
Proceeds from sale of capital assets
Settlement
Payment to refunded bond escrow agent (1,200,535) (55,790,463) Total other financing
sources (uses) (9,777,540) (2,454,062) (5,186,036) 5,337,347 2,974,745 Extraordinary gain/loss
Net change in fund balances $ 23,757,001 $ 13,584,320 $ 9,838,033 $ (4,919,982) $ 1,529,752 Capital outlay included in
current expenditures $ 13,347,610 $ 14,545,855 $ 1,970,021 $ 20,251,033 $ 12,074,642 Debt service as a percentage of
noncapital expenditures 8.9% 9.8% 10.2% 17.1% 17.3%
Source: City of Palm Springs, Finance Department
181
Item 3A - Page 195
Fiscal Year
Ended
June 30
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
NOTE:

City of Palm Springs
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(in thousands of dollars)
Other Total Net Taxable
Residential Commercial Industrial (Note 2) Assessed Value 6,189,449 1,007,976 182,092 2,596,257 9,975,774
6,769,881 1,049,728 188,124 2,707,508 10,715,241
7,267,097 1,130,143 209,157 2,830,043 11,436,440
7,779,070 1,223,619 217,276 3,026,673 12,246,638
8,355,259 1,307,774 227,220 3,087,901 12,978,154
8,938,311 1,400,156 212,160 3,216,173 13,766,800
9,493,712 1,516,182 235,660 3,243,191 1'4,488,745
10,209,521 1,603,629 255,364 3,508,210 15,576,724
11,419,940 1,697,736 246,878 3,790,530 17,155,084
14,944,289 2,067,112 208,060 1,424,949 18,644,410
Total
Direct Rate

0.22389

0.22420

0.22439

0.22388

0.22503

0.22472

0.22471

0.22432

0.22417

0.22716
In 1978 the voters
of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1 % based upon the assessed value of the property being taxed. Each year, the assessed value of the property may be increased by an "inflation factor" (limited to a maximum increase of2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Note 2: Includes government owned, institutional, miscellaneous, recreational, vacant, SBE Nonunitary, cross reference, unsecured, exempt, and unknown.

Source: Riverside County Assessor data, MuniServices, LLC / Avenu Insights & Analytics 182
Item 3A - Page 196
Taxpayer
Tenet Healthsystem Desert Inc
DTPS
MoW1tain View Power Partners IV LLC
Lilacl9 LP
Skywest Airlines Inc
JRK Palm Springs Hotel Owner
1XG Smoke Tree Commons
Coachella Hills Wind LLC
HH Palm Springs
Avalon 1150
AGRE DCP Palm Springs
Desert Boutique TMO
Ha11 Palm Springs II
Windpower Partners 1993 LP
Palm Canyon Hotel
GHPSI
Wal Mart Real Estate Business Trust
Walter Hotel Corp
Pacific Monarch Resorts Inc
Kings Garden Inc
IIP-Ca2
Kilmainham Vyaire
OCL2020LLC
Parker Palm Springs II
Autry Plaza SPE
Riviera Reincarnate
Endure INV
Palm Springs Art Museum Inc
WCA Holdings III LLC
Hope Linda
RBD Hotel Pa1m Springs
Desert Sun Publishing Co
CLP Palm Springs Ca Waterpark
FAOF Palm Springs
Albertsons Inc
LV Palm Springs Village
GRP Aviation LLC
Lowes HIW Inc
Wessman John
San Gorgonio Westwinds II LLC
Total Top 25 Taxpayers
Total Taxable Value
City of Palm Springs
Principal Property Taxpayers
Current Year and Nine Years Ago
2024
% ofTotal
Taxable City Taxable
Assessed Assessed
Value($) Rank VaJue
$ 146,193,209 0.78%
89,095,086 2 0.48%
76,479,213 3 0.41%
65,158,410 4 0.35%
63,185,355 5 0.34%
60,000,000 6 0.32%
50,507,873 7 0.27%
50,435,314 8 0.27%
47,163,721 9 0.25%
47,098,341 10 0.25%
44,619,840 II 0.24%
42,356,235 12 0.23%
41,792,884 13 0.22%
38,002,948 14 0.20%
36,775,000 15 0.20%
36,695,448 16 0.20%
35,335,235 17 0.19%
33,515,293 18 0.18%
32,005,305 19 0.17%
29,528,770 20 0.16%
29,219,828 21 0.16%
26,600,000 22 0.14%
26,055,139 23 0.14%
26,043,918 24 0.14%
24,345,360 25 0.13%
$ 1,198,207,725 6.43%
$ 18,644,409,748 100%
Source: MuniServices, LLC / Avenu Insights & Analytics
183
2015
% of Total
Taxable City Taxable
Assessed Assessed
Value($} Rank Value
$ 110,442,234

1.36%
59,729,01 I
32,391,219

0.39%
61,681,537
40,028,226 0.44%

1.05%

0.24%

0.33%
58,054,048
32,431,209
18,843,000 0.27%
21,067,207 0.24%

0.32%
21,313,701

0.26%
53,442,703 0.71%
48,284,922 0.53%
44,934,130 0.53%
32,130,000 0.51%
27,184,575 0.37%
26,806,439 0.32%
24,979,406 0.31%
20,435,802 0.26%
19,021,244 0.25%
17,157,542 0.21%
16,902,129 0.21%
16,837,500 0.20%
16,123,529 020%
14,588,504 0.18%
14,312,000 0.17%

0.17%
$ 849,121,817 9.80%
$ 9,923,692,475 100%
Item 3A - Page 197
City of Palm Springs
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Assessed Value)
Fiscal Year
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Basic Levy (Note l) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Overlapping Rates (Note 2)
Coachella Valley Water District 0.11000 0.08000 0.11000 0.10000 0.10000 0.10000 0.10000 0.10000 0.10000 0.10000 Desert Community College 0.03950 0.03950 0.03950 0.03978 0.03983 0.03978 0.04030 0.02036 0.02087 0.02325 PaJm Springs Unified B & I 1992-A 0.14493 0.14493 0.15030 0.10603 0.10542 0.10603 0.11146 0.11802 0.08978 0.10160 Total Direct and Overlapping Tax Rates 1.29443 1.26443 1.29980 1.24581 1.24525 1.24581 1.25176 1.23838 1.21065 1.22485 City Share of 1% Levy (Note 3) 0.22716 0.22716 0.22716 0.22716 0.22716 0.22716 0.27505 0.27505 0.27505 0.27505 Total Direct Rate (Note 4) 1.29980 1.29980 1.29980 1.24581 1.24525 1.24581 1.25176 1.23838 1.21065 1.22485 Note I: In 1978, CaJifornia voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount The 1.00% is shared by a11 taxing agencies for which the subject property resides within. In addition to the l.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

Note 2: Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to an City property owners.

Note 3: City's share of 1% Levy is based on the City's share of the general fund tax rate area within the largest net taxable value within the City.

ERAF general fund tax shifts may not be included in tax ratio figures.

Note 4: Total Direct Rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section infonnation and excludes revenues derived from aircraft. Beginning in 2013/14 the J'otal Direct Rate no longer includes revenue generated from the fonner redevelopment tax rate areas.

Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fi.md revenue. Rate was not obtained for 2023-24.

Source: County Auditor/Controller data, MuniServices, LLC / Avenu Insights & Analytics 184
Item 3A - Page 198
Fiscal Taxes
Year Ended Levied for the
June 30 Fiscal Year
2015 34,215,678
2016 38,459,265
2017 43,978,592
2018 46,794,948
2019 47,670,404
2020 49,621,654
2021 52,540,040
2022• 52,540,040
2023* 52,540,040
2024* 52,540,040
NOTE:

City of Palm Springs
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal Year ofLery Collections
Percent in Subsequent
Amount ofLery Years
32,782,699 95.81% 1,452,247
37,007,018 96.22% 1,635,157
40,100,275 91.18% 1,121,580
43,474,760 92.90% 1,099,304
44,464,724 93.28% 1,120,254
45,027,435 90.74% 1,166,109
46,088,725 87.72% 1,234,691
46,088,725 87.72% 1,234,691
46,088,725 87.72% 1,234,691
46,088,725 87.72% 1,234,691
Total Collections to Date
Percent
Amount ofLery
34,100,680 99.66%
38,310,012 99.61%
41,221,855 93.73%
44,574,064 95.25%
45,584,978 95.63%
46,193,544 93.09%
47,323,416 90.07%
47,323,416 90.07%
47,323,416 90.07%
47,323,416 90.07%
The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed-through to other agencies.

Source: City of Palm Springs, Finance Department
* Amounts based on estimates with information available at time of report 185
Item 3A - Page 199
Fiscal Year Pension
Ended Obligation
June 30 Bond
2015 19,572,184
2016 19,222,909
2017 20,247,941
2018 20,011,558
2019 19,607,276
2020 19,358,146
2021 18,906,176
2022 18,369,513
2023 17,740,064
2024 17,019,643
City of Palm Springs
Ratios of Outstaudiug Debt by Type
Last Teu Fiscal Years
Governmental Activities
Finance
Revenue Bonds Purchases Notes Payable
136,551,633 1,873,893 18,494,072
131,071,106 1,406,002 18,113,537
125,668,199 916,609 17,681,254
119,760,742 4,096,506 17,193,687
112,901,147 3,365,431 17,401,940
107,460,062 4,404,589 16,235,985
100,949,527 5,845,000 15,662,520
98,005,042 5,135,019 20,648,781
90,561,142 4,564,878 19,834,121
82,991,194 3,992,558 18,955,805
Suscription and
Lease Liabilities
47,187,412
46,051,303
48,303,726
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 186
Total
Governmental
Activities
176,491,782
169,813,554
164,514,003
161,062,493
153,275,794
147,458,782
141,363,223
189,345,767
178,751,508
171,262,926
Item 3A - Page 200
Fiscal Year Airport
Ended Revenue
June 30 Bonds
2015 18,161,227
2016 16,694,038
2017 12,826,849
2018 9,929,660
2019 6,912,173
2020 23,815,645
2021 22,078,598
2022 20,271,051
2023 18,383,504
2024 16,415,958
City of Palm Springs
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Business-T~e Activities
Subscription Total Total
Revenue and Lease Business-type Primary
Bonds Loans Liabilities Activities Govt
8,502,035 6,807 26,670,069 203,161,850
7,947,127 24,641,165 195,656,954
7,607,672 20,434,521 184,948,544
6,918,049 14,354,637 644,329 31,846,675 192,909,168
6,245,864 21,747,934 528,191 35,434,162 188,709,956
5,549,267 25,358,788 425,683 55,149,383 202,608, 165
4,866,953 24,661,857 278,082 51,885,490 193,248,713
4,109,542 23,966,807 123,729 48,471,129 236,489,545
3,327,718 23,259,941 78,869 45,050,032 223,801,540
2,531,945 22,541,059 38,118 41,527,080 212,790,006
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. * Personal Income 2,805,183
• Total Population 45,223
187
Percentage Debt
of Personal Per
Income* Capita*
126.01 4,558
114.02 4,389
101.25 4,149

98.62 4,328

89.53 4,234

94.97 4,545

83.34 4,335

95.51 5,305

79.78 4,949

75.86 4,705
Item 3A - Page 201
City of Palm Springs
Ratio of Net General Bonded Debt Ontstanding
Last Ten Fiscal Years
(In Thonsands, except Per Capita)
Outstanding General Bonded Debt
Fiscal Year Pension Resources Net General Percent of
Ended Obligation Restricted for Bonded Debt Assessed Per June 30 Bond Revenue Bonds Total Debt Service Outstanding Value (I) Capita 2015 19,572 136,552 156,124 3,314 152,810 1.53% 3,312
2016 20,425 131,071 151,496 3,332 148,164 1.38% 3,176
2017 20,248 125,668 145,916 3,216 142,700 1.25% 3,012
2018 20,012 119,758 139,770 3,199 136,571 1.12% 2,863
2019 19,607 113,656 133,263 3,205 130,058 1.00% 2,669
2020 19,358 107,460 126,818 3,875 122,943 0.89% 2,733
2021 18,906 100,950 119,856 625 119,231 0.82% 2,497
2022 18,370 98,005 116,375 5 116,370 0.75% 2,611
2023 17,740 90,561 108,301 3 108,299 0.63% 2,395
2024 17,020 82,991 100,011 4 100,006 0.54% 2,211
{I) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
(2) City Asses: $18,644,410
188
Item 3A - Page 202
City of Palm Springs
Direct and Overlapping Governmental Activities Debt
as of June 30, 2024
2023-24 Assessed Valuation: $18,750,285,835
OVERLAPPING TAX AND ASSESSMENT DEBT:

Desert Community College District
Mount San Jacinto Community College District
Banning Unified School District
Palm Springs Unified School District
San Gorgonio Memorial Hospital District
California Statewide Community Development Authority Assessment District City of Palm Springs 1915 Act Bonds

TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Riverside County General Fund Obligations
Riverside County Pension Obligation Bonds
Banning Unified School District Certificates of Participation City of Palm Springs General Fund Obligations
City of Palm Springs Pension Obligation Bonds
City of Palm Springs Total Lease Liabilites

TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):

TOTAL DIRECT DEBT

TOTAL OVERLAPPING DEBT

COMBINED TOTAL DEBT
Total Debt
6/30/2024
$ 664,990,000
242,210,000
53,746,613
475,359,672
105,215,918
587,541
3,060,000
$1,169,217,035
670,785,000
8,018,000
94,989,490
13,278,594
48,303,726
$167,205,065
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries.of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue bonds and non-bonded capital lease obligations.

Ratios to 2023-24 Assessed Valuation:

Total Overlapping Tax and Assessment Debt
Total Direct Debt ($171,262,300)
Combined Total Debt
Ratios to Redevelopment Successor Agencies Incremental Valuation ($3.624.078,716):

Total Overlapping Tax Increment Debt
Source: Avenu Insights & Analytics
California Municipal Statistics, Inc.
189

1.74%

70.32%

72.06%

0.64%
% Auulicable fl)

16.983%

0.004%

0.122%

43.922%

0.035%
100%
100%

4.726%

0.122%
100%
100%
100%

0.187-100. %
City's Share of
Debt 6/30/24
$112,935,252
9,688
65,571
208,787,475
36,825
587,541

3.060,000
$325,482,352
$55,257,197
31,701,299
9,782
94,989,490
13,278,594
48,303,726
$243,540,088
$23,024,506
$171,262,300
$435,475,136
$606,737,436
Item 3A - Page 203
Assessed Valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:

General Obligation Bonds
Legal debt Margin
Total Debt applicable to the limit
as a percentage of debt limit
City of Palm Springs
Legal Debt Margin Information
Last Ten Fiscal Years
(in Thousands of Dollars)
Fiscal Year
2024 2023 2022
$18,644,410 $17,155,084 $15,575,348
25% 25% 25%
4,661,103 4,288,771 3,893,837
15% 15% 15%
699,165 643,316 584,076
0 0 0
$699,165 $643,316 $584,076

0.0% 0.0% 0.0%
2021 2020
$13,870,348 $13,133,512
25% 25%
3,467,587 3,283,378
15% 15%
520,138 492,507
0 0
$520,138 $492,507

0.0% 0.0%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Source: City of Palm Springs, Finance Department
190
Item 3A - Page 204
City of Palm Springs
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
(in Thousands of Dollars)
Fiscal Year
2019 2018 2017 2016 2015
Assessed Valuation $12,655,392 $11,894,269 $10,826,781 $10,176,176 $9,975,774 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 3,163,848 2,973,567 2,706,695 2,544,044 2,493,944 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 474,577 446,035 406,004 381,607 374,092
Total net debt applicable to limit:

General Obligation Bonds 0 0 0 0 0
Legal debt Margin $474,577 $446,035 $406,004 $381,607 $374,092 Total Debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at I 00% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Source: City of Palm Springs, Finance Department
191
Item 3A - Page 205
Fiscal Year Less
City of Palm Springs
Pledged-Revenue Coverage
Last Ten Fiscal Years
Airport Revenue Bonds
Net
Ended Airport Operating Available Debt Service
June 30 Revenue Expenses Revenue
2015 24,793,762 24,630,467
2016 25,237,494 24,225,209
2017 26,526,151 28,080,171
2018 29,224,194 27,890,781
2019 32,279,397 28,994,735
2020 28,636,927 . 28,354,899
2021 23,043,916 28,316,837
2022 42,934,803 23,523,075
2023 52,293,997 30,250,392
2024 59,158,970 40,509,604
I) Includes $2,665,000 in special mandatory redemption
2) Includes $1,625,000 in special mandatory redemption
3) Includes $1,510,000 in special mandatory redemption
4) Includes $2,200,000 in special mandatory redemption
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses.
163,295
1,012,285
(1,554,020)
1,333,413
3,284,662
282,028
(5,272,921)
19,411,728
22,043,605
18,649,366
192
Principal
2,310,000
1,505,000
3,905,000 I)
2,935,000 2)
3,125,000 3)
8,665,000 4)
1,460,000
1,530,000
1,610,000
1,690,000
Interest Coverage
1,180,929 0.05
1,074,954 0.39
881,756 -0.32
722,870 0.36
590,539 0.88
1,542,720 0.03
753,869 -2.38
683,544 8.77
887,500 8.83
807,000 7.47
Item 3A - Page 206
City of Palm Springs
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per Capita City
Calendar Income Personal Unemployment
Year Population (in thousands) Income
2015 46,135 1,612,280
2016 46,654 1,716,050
2017 47,379 1,826,568
2018 47,706 1,956,172
2019 48,733 2,107,751
2020 47,427 2,133,442
2021 47,754 2,318,714
2022 44,397 2,476,079
2023 45,223 2,805,183
2024 43,791 3,038,978
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: FY2015 thru FY2023, City of Palm Springs -ACFR Publication

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Income Data is provided by the U.S. Census Bureau.

3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department. 34,947
36,782
38,552
41,005
43,251
44,984
48,555
55,771
62,030
69,397

4.) Student Enrollment reflects the total number of students enrolled in the Palm Springs Unified School District.

Other school districts within the City are not accounted for in this statistic. 193
Rate

6.8%

5.5%

5.0%

3.5%

2.8%

18.0%

10.7%

2.7%

4.8%

3.8%
Item 3A - Page 207
City of Palm Springs
Principal Employers
Last Fiscal Year and Nine Years ago
2023-24
Number of Percent of Total
Business Name
Palm Springs Unified School District*
Desert Regional Medical Center
Agua Caliente Casino Palm Springs
City of Palm Springs
Walmart Supercenter
California Nursing and Rehabilitation Center
Margaritaville Resort Palm Springs (Riviera Palm Springs Resort)** The Home Depot
Palm Springs Health Care and Rehabilitation Center
Lowe's Home Improvement
Spa Resort Casino
Hard Rock Hotel - Palm Springs
Desert Sun Publishing
Care Fusion
Savoury's Inc
Palm Springs City Hall
Kaplan College
Total Top Employers
Total City Employment (I)
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: FY2015, City of Palm Springs--ACFRPublication
(!) Total City Labor Force is provided by EDD Labor Force Data.

Results based on direct correspondence with city's local businesses. *Count is for the entire school district.

Employees Employment(%)
2,716
2,591
621
515
378
257
251
222
156
134
7,841
23,800

11.41%

10.89%

2.61%

2.16%

1.59%

1.08%

1.05%

0.93%

0.66%

0.56%

32.95%
*"'Employer has not reponded to Avenu's employee count inquires. Previous year count applied. 194
2014-15
Number of
Employees
1000-4999
250-499
250-499
1000-4999
500-999
250-499
250-499
250-499
250-499
250-499
NIA
Item 3A - Page 208
City of Palm Springs
Full - Time Equivalent City Employees By Department
Last Ten Fiscal Years
Fiscal Year
Department 2024 2023 2022 2021 2020 2019 2018
General Government
Administration 76.00 72.00 86.70 57.65 59.78 62.20 55.20 Growth Management 32.39 30.39
Quality of Life 55.25 54.00
Public Safety 97.00 251.00 232.00 227.00 246.00 210.00 195.00 Public Works & Engineering• 17.00 78.33 23.48 23.48
Community & Economic Development 8.00 IO.DO 5.72 5.72 3.22 Development Services 31.00 50.67 41.00 60.70 41.00
Parks and Recreation 40.25 38.25 30.75 34.75 32.50
Library 15.25 15.25 14.25 14.25 14.25
Aiiport 86.50 69.00 77.00 72.00 75.00 73.00 74.00
Motor Vehicle• 8.00 8.00 8.00 8.00 8.00
Facilities Maintenance• 18.00 18.00 17.00 13.90 13.90
Risk Management• 6.05 4.30 6.05 4.25 4.25
Low & Moderate Income Housing• 3.28 3.28 2.78 2.78 2.78 Wastewater Treabnent Plant• 1.25 0.35 0.42
Total 371.00 584.50 524.00 506.00 506.00 485.25 461.00
• City re-categorized groupings in the 2022-23 fiscal year.

Source: City of Palm Springs, Finance Department Adopted Budget 195
2017 2016 2015

44.20 39.20 36.25

31.39 30.37 24.29

53.50 52.50 54.50
189.00 178.00 173.50

23.38 23.38 20.33

70.00 69.00 67.00

8.00 8.00 8.00

13.00 13.00 13.00

4.25 4.25 3.25

2.78 2.80 3.38
439.50 420.50 403.50
Item 3A - Page 209
Police:

Arrests
Parking Citations
Fire:

Number of Emergency Calls
Inspections
Public Works:

Street resurfacing (sq feet)
Parks and Recreation:

Number of recreation classes
Number of facility rentals
Airport:

Passengers serviced
Flights
Sewer:

New Connections
Ave Daily sewage treatment
Golf Course:

Golf rounds played
City of Palm Springs
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
2024 2023 2022
1,903 1,347 1,714
5,504 5,095 4,410
12,089 12,264 12,286
1,054 2,370 1,060
1,840,000 1,980,000 4,772,800
4,953 9,221 3,477
2,862 3,404 2,773
3,260,435 3,244,015 2,825,490
60,874 63,307 63,141
107 117 138

4.559 4.670 4.700
67,963 70,906 72,549
Note: There were decreases in FY2021 due to COVID-19
Source: City of Palm Springs, Finance Department
196
2021 2020
1,866 1,914
1,169 4,483
10,735 10,114
875 2,488
4,450,496 4,567,855
824 5,802
1,226 1,303
1,332,655 1,816,588
49,089 47,934
188 193

4.496 4.800
56,440 65,594
Item 3A - Page 210
Police:

Arrests
Parking Citations
Fire:

Number of Emergency Calls
Inspections
Public Works:

Street resurfacing (sq feet)
Parks and Recreation:

Number of recreation classes
Number of facility rentals
Airport:

Passengers serviced
Flights
Sewer:

New Connections
Ave Daily sewage treatment
Golf Course:

Golf rounds played
City of Palm Springs
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
Fiscal Year
2019 2018 2017
2,559 2,634 2,844
5,190 5,138 4,014
9,782 9,880 9,993
4,888 3,364 3,489
1,967,233 6,129,638 3,385,000
5,982 2,919 5,866
3,562 3,851 3,968
2,457,680 2,213,001 2,052,129
53,229 50,751 53,174
Ill 198 163

5.396 6.005 5.798
87,255 92,202 89,268
Note: There were decreases in FY202 l due to COVID-19
Source: City of Palm Springs, Finance Department
197
2016 2015
3,566 3,608
5,424 3,826
10,071 9,753
3,666 3,389
11,111,269 2,875,700
5,385 2,642
3,908 144
1,917,702 1,914,402
55,977 55,823
165 175

5.845 6.042
89,020 98,866
Item 3A - Page 211
City of Palm Springs
Capital Asset Statistics
By Function
Last Ten Fiscal Years
Fiscal Year
Police: 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Stations I I I
Fire:

Fire Stations 5 5 5 5 5 5 5 5 5 4
Public Works:

Streets (miles) 270 270 270 270 270 270 270 270 270 270 Streetlights 405 405 405 405 405 405 405 405 405 405
Traffic signals 86 86 86 86 84 84 84 84 84 84
Parks and recreation:

Parks IO IO IO IO IO IO IO IO IO IO
Community centers 3 3 3 3 3 3 3 3 3 3
Airport:

Runway (feet) 14,952 14,952 14,952 14,952 14,952 14,952 14,952 14,952 14,952 14,952 Gates 18 18 18 18 18 18 18 18 18 18
Wastewater:

Sanitary sewers (miles) 264 264 264 264 264 264 264 264 264 264 Storm sewers (miles) 52 52 52 52 52 52 52 52 52 52
Maximwn daily treatment capacity
(thousands of gallons) I0,900 10,900 I0,900 I0,900 I0,900 I0,900 10,900 I0,900 I0,900 I0,900 Cogeneration:

Cogeneration plants
Golf Course:

Municipal golf courses 2 2 2 2 2 2 2 2 2 2
Convention Center:

Square feet 261,000 261,000 261,000 261,000 261,000 261,000 261,000 261,000 261,000 261,000 Meeting rooms 19 19 19 19 19 19 19 19 19 19
Source: City of Palm Springs, Finance Department
198
Item 3A - Page 212
2023-24
Taxpayer
Albertson's Food Centers
Arco AM/PM Mini Marts
Avis Rent-A-Car
BMW of Palm Springs
Budget Rent-A-Car
Dollar Rent-A-Car
Enterprise Rent-A-Car
Financial Services Vehicle Trust
Hertz Rent-A-Car
Home Depot
Le Parker Meridien Palm Springs Hotel
Lowe's Home Centers
Mercedes-Benz of Palm Springs
Palm Springs Hyundai
Pilot Travel Center
Porsche of Palm Springs
Ralph's Grocery Company
Ross Stores
Shell Service Stations
Superior Pool Products
TJMaxx
Union 76 Service Stations
United Aviation Fuels
Wal Mart Stores
World Fuel Services
City of Palm Springs
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
Business Type Taxpayer
Food Markets Arco AM/PM Mini Marts
Service Stations BMW of Palm Springs
Leasing Budget Rent-A-Car
Auto Sales - New Builders Supply
Leasing Enterprise Rent-A-Car
Leasing Genesis of Palm Springs
Leasing Hertz Rent-A-Car
Leasing Home Depot
Leasing Las Casuelas Terraza
2014-15
Bldg.Matis-Retail Le Parker Meridien Palm Springs Hotel Restaurants Lowe's Home Centers
Bldg.Matis-Retail Lulu California Bistro
Auto Sales - New Mercedes-Benz of Palm Springs
Auto Sales - New Palm Springs Hyundai
Service Stations Pilot Travel Center
Auto Sales - New Ralph's Grocery Company
Food Markets Riviera Resort & Spa
Apparel Stores Ross Stores
Service Stations Shell Service Stations
Bldg.Matls-Whsle Stein Mart
Apparel Stores TJMaxx
Service Stations Union 76 Service Stations
Energy Sales Vons Service Stations
Department Stores Wal Mart Stores
Energy Sales Walgreen's Drug Stores
Source: MuniServices, LLC / Avenu Insights & Analytics
199
Business Type
Service Stations
Auto Sales - New
Leasing
Bldg.Matis-Retail
Leasing
Auto Sales - New
Leasing
Bldg.Matis-Retail
Restaurants
Restaurants
Bldg.Matis-Retail
Restaurants
Auto Sales - New
Auto Sales - New
Service Stations
Food Markets
Miscellaneous Retail
Apparel Stores
Service Stations
Apparel Stores
Apparel Stores
Service Stations
Service Stations
Department Stores
Drug Stores
Item 3A - Page 213
This page i,itentionally left blank.
200

ATTACHMENT B

Item 3A - Page 214
Item 3A - Page 215
December 31, 2024
To the Honorable Mayor and the Member s of the City Council of the City of Palm Springs
Palm Springs, California
200 E. Sandpointe Avenue, Suite 600
Santa Ana, Califomia92707
www.pungroup .cpa ~
We have audited the finan cial statemen ts of the governmental activities, the business-type activitie s, each major fund , and the aggregate remainin g fund information of the City of Palm Springs , California (the "City "), the financial statement s of Measure J Capita l Projects Fund of the City (the "Measure J Fund"), and the financial statement of the governmental activitie s and each major fund of the City of Palm Spring s Financing Authority (the "PFA "), for the year ended June 30, 2024 . Professional standard s require that we provide you with information about our responsibilitie s under generall y accept ed auditing standard s, and Government Auditing Standards, as well as certain informati on related to the planned scope and timing of our audit . We have communicated such information in our letter to you dated May 16, 2024. Professional standards also require that we communicate the following information related to our audit .

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriat e accounting policies. The significant accountin g policies used by the City are described in Note I to the basic financial statement s. As described in Note 1 to the City 's financial statements , the City implem ented the GASB 100 - Accounting Changes and Error Corrections-an amendment of GASB Statement No. 62. No othe r new accounting policies were adopted and the appli cation of existing policies was not changed during 2024. We noted no transa ction s entered into by the City durin g the year for which there is a lack of authori tative guidance or consensus. All significant tran sactions have been recogni zed in the financial stateme nts in the proper period.

Accounting estimates are an integral part of the financial statement s prepared by management and are based on management's knowledge and experience about past and current event s and assumpt ions about futur e e vents. Certain accounting estimates are partic ularly sensitive becau se of their significance to the financial statements and because of the possib ility that future events affecting them may differ significant ly from those expec ted. The most sensitive estimates affecting the City ' s financial statements were:
• Management ' s estimate of the investment fair market value is based on information provided by the trustees.

We evaluat ed the key factor s and ass umption s used to develop the investment fair market value in determinin g that it is reasonable in relation to the financ ial statement s taken as a whole . • Management's estimate of the depreciation and amortization on capital assets is based on the industry standard and past experien ce o n actual useful life of the a sset groups. We eva luated the key factor s and ass umption s used to develop the depreciation and amortization on capital assets in determining that it is reasonabl e in relatio n to the finan cial statements taken as a whole.
• Management 's estimate of the net pension liability is based on the actuarial valuation on total pension liability and based on financia l statements o n fiduciary net position for CalPERS plans. We evaluated the key factor s and assumption s used to develop the net pension liability in dete rmin ing that it is reasonable in relation to the financial statements taken as a whole.
• Management ' s estimate of the net other postemployment benefits ("OPEB ") liability is based on the actuar ial valuation on total OPEB liability and financial statements on fiduciary net position. We evaluated the key factors and assumptio ns used to develop the OPEB liability in determinin g that it is reasonable in relation to the financial statement s taken as a whole.

ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 Item 3A - Page 216
To the Honorable Mayor and the Members of the City Council of the City of Palm Springs
Palm Springs, California

Page 2 ends

Palm Springs City CouncilFebruary 27, 2025

Palm Springs City Council
February 27, 2025