{
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    "items": [
        {
            "id": "p64.1",
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            "type": "header",
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            "text": "CITY OF PALM DESERT, CALIFORNIA\nNotes to Basic Financial Statements\nFor the Year Ended June 30, 2025",
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            "type": "heading",
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            },
            "text": "NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)",
            "attrs": {
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        },
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            "text": "At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term."
        },
        {
            "id": "p64.4",
            "order": 4,
            "type": "list",
            "bbox": {
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            "text": "",
            "attrs": {
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            "children": [
                {
                    "id": "p64.4.1",
                    "order": 5,
                    "type": "list_item",
                    "bbox": {
                        "l": 51.36,
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                        "r": 559.44,
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                    "text": "Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts."
                },
                {
                    "id": "p64.4.2",
                    "order": 6,
                    "type": "list_item",
                    "bbox": {
                        "l": 51.36,
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                    "text": "The City uses its estimated incremental borrowing rate as the discount rate for leases."
                },
                {
                    "id": "p64.4.3",
                    "order": 7,
                    "type": "list_item",
                    "bbox": {
                        "l": 51.84,
                        "t": 560.77,
                        "r": 559.68,
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                    "text": "The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee."
                },
                {
                    "id": "p64.4.4",
                    "order": 8,
                    "type": "list_item",
                    "bbox": {
                        "l": 51.6,
                        "t": 525.84,
                        "r": 559.44,
                        "b": 489.36
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                    "text": "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."
                }
            ]
        },
        {
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            "order": 9,
            "type": "heading",
            "bbox": {
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            },
            "text": "L. Subscription-Based Information Technology Arrangements",
            "attrs": {
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            },
            "level": 3
        },
        {
            "id": "p64.6",
            "order": 10,
            "type": "text",
            "bbox": {
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            "text": "The City is a subscriber for several noncancellable subscription of information technology services. The City recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more."
        },
        {
            "id": "p64.7",
            "order": 11,
            "type": "text",
            "bbox": {
                "l": 50.88,
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                "r": 560.4,
                "b": 302.4
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            "text": "At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments."
        },
        {
            "id": "p64.8",
            "order": 12,
            "type": "list",
            "bbox": {
                "l": 51.6,
                "t": 294.77,
                "r": 559.92,
                "b": 131.04
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            "text": "",
            "attrs": {
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            "children": [
                {
                    "id": "p64.8.1",
                    "order": 13,
                    "type": "list_item",
                    "bbox": {
                        "l": 51.84,
                        "t": 294.77,
                        "r": 559.92,
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                    "text": "The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions."
                },
                {
                    "id": "p64.8.2",
                    "order": 14,
                    "type": "list_item",
                    "bbox": {
                        "l": 51.6,
                        "t": 248.76999999999998,
                        "r": 559.68,
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                    "text": "The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City is reasonably certain to exercise."
                },
                {
                    "id": "p64.8.3",
                    "order": 15,
                    "type": "list_item",
                    "bbox": {
                        "l": 51.6,
                        "t": 202.08,
                        "r": 559.68,
                        "b": 164.4
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                    "text": "The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability."
                },
                {
                    "id": "p64.8.4",
                    "order": 16,
                    "type": "list_item",
                    "bbox": {
                        "l": 51.6,
                        "t": 156.24,
                        "r": 559.44,
                        "b": 131.04
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                    "text": "Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position."
                }
            ]
        },
        {
            "id": "p64.9",
            "order": 17,
            "type": "footer",
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            "text": "64",
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