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UNITED
    STATES
 SECURITIES
    AND EXCHANGE COMMISSION
 Washington, D.C.
    20549
 FORM
    10-Q
  (Mark
    one)
 x
    QUARTERLY
    REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934  For the quarterly
    period ended September 30, 2006.
  OR
  o
    TRANSITION
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934  For the
    transition period from
    
    to
     .
  Commission file
    no. 0-16191
  DEL
    TACO RESTAURANT PROPERTIES I
 a California
    limited partnership
 (Exact
    name of registrant as specified in its charter)
  California

95-3852699(State or other jurisdiction of
    incorporation or organization)

(I.R.S. Employer
    Identification Number)25521 Commercentre Drive, Lake
    Forest, California

92630(Address of principal executive
    offices)

(Zip Code)   (949) 462-9300
 (Registrants telephone
    number, including area code)
  Indicate by check
    mark whether the registrant (1) has filed all reports
    required to be filed by Section 13 or 15(d) of the
    Securities Exchange Act of 1934 during the preceding
    12 months (or for such shorter period that the registrant
    was required to file such reports), and (2) has been
    subject to such filing requirements for the past
    90 days.  Yes þ  No o
  Indicate by check
    mark whether the registrant is a large accelerated filer, an
    accelerated filer, or a non-accelerated filer. See definition of
    accelerated filer and large accelerated filer in
    Rule 12b-2
    of the Exchange Act (check one):
 Large accelerated
    filer o     Accelerated
    filer o     Non-accelerated
    filer þ
  Indicate by check
    mark whether the registrant is a shell company (as defined in
    Rule 12b-2
    of the Exchange
    Act).  Yes o  No þ




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##### 



DEL TACO RESTAURANT PROPERTIES I
  
 PAGE NUMBERPART I. FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Balance Sheets at September 30, 2006 (Unaudited) and
December 31, 2005
    
    
    3Condensed Statements of Income for the three and nine months ended
September 30, 2006 and 2005 (Unaudited)
    
    
    4Condensed Statements of Cash Flows for the nine months ended
September 30, 2006 and 2005 (Unaudited)
    
    
    5Notes to Condensed Financial Statements (Unaudited)
    
    
    6Item 2. Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    
    9Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    12Item 4. Controls and Procedures
    
    
    12PART II. OTHER INFORMATIONItem 6. Exhibits and Reports
    
    
    13SIGNATURE
    
    
    14EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
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PART I. FINANCIAL INFORMATION
 
 ITEM I. FINANCIAL STATEMENTS
 DEL TACO RESTAURANT PROPERTIES I
 
 CONDENSED BALANCE SHEETS
 September 30,
    
    
    December 31,2006
    
    
    2005(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    253,868
    
    
    $
    268,272Receivable from Del Taco LLC
    
    
    59,378
    
    
    
    65,191Deposits
    
    
    1,274
    
    
    
    600Total current assets
    
    
    314,520
    
    
    
    334,063PROPERTY AND EQUIPMENT:Land and improvements
    
    
    1,852,482
    
    
    
    1,852,482Buildings and improvements
    
    
    1,013,134
    
    
    
    1,013,134Machinery and equipment
    
    
    1,136,026
    
    
    
    1,136,0264,001,642
    
    
    
    4,001,642Lessaccumulated depreciation
    
    
    2,040,850
    
    
    
    2,019,1391,960,792
    
    
    
    1,982,503$
    2,275,312
    
    
    $
    2,316,566LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    77,664
    
    
    $
    81,974Accounts payable
    
    
    4,431
    
    
    
    4,525Total current liabilities
    
    
    82,095
    
    
    
    86,499PARTNERS EQUITY:Limited partners; 8,751 units outstanding at September 30, 2006
    
    
    1,931,187
    
    
    
    1,967,669and December 31, 2005General partner-Del Taco LLC
    
    
    262,030
    
    
    
    262,3982,193,217
    
    
    
    2,230,067$
    2,275,312
    
    
    $
    2,316,566
  -3-




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DEL TACO RESTAURANT PROPERTIES I
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005RENTAL REVENUES
    
    $
    180,681
    
    
    $
    194,573
    
    
    $
    543,322
    
    
    $
    587,015EXPENSES:General and administrative
    
    
    9,137
    
    
    
    9,998
    
    
    
    60,176
    
    
    
    58,277Depreciation
    
    
    7,237
    
    
    
    10,943
    
    
    
    21,711
    
    
    
    32,82916,374
    
    
    
    20,941
    
    
    
    81,887
    
    
    
    91,106Operating income
    
    
    164,307
    
    
    
    173,632
    
    
    
    461,435
    
    
    
    495,909OTHER INCOME:Interest
    
    
    1,347
    
    
    
    763
    
    
    
    3,444
    
    
    
    2,442Other
    
    
    300
    
    
    
    250
    
    
    
    650
    
    
    
    950Net income
    
    $
    165,954
    
    
    $
    174,645
    
    
    $
    465,529
    
    
    $
    499,301Net income per limited
partnership unit (note 2)
    
    $
    18.77
    
    
    $
    19.76
    
    
    $
    52.67
    
    
    $
    56.49Number of units used in computingper unit amounts
    
    
    8,751
    
    
    
    8,751
    
    
    
    8,751
    
    
    
    8,751
  -4-




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DEL TACO RESTAURANT PROPERTIES I
 
 CONDENSED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Nine Months EndedSeptember 30,2006
    
    
    2005CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    465,529
    
    
    $
    499,301Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    21,711
    
    
    
    32,829Changes in operating assets and liabilities:Receivable from Del Taco LLC
    
    
    5,813
    
    
    
    1,636Deposits
    
    
    (674
    )
    
    
    525Payable to limited partners
    
    
    (4,310
    )
    
    
    12,585Accounts payable
    
    
    (94
    )
    
    
    (5,183
    )Net cash provided by operating activities
    
    
    487,975
    
    
    
    541,693CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (502,379
    )
    
    
    (526,098
    )Net (decrease) increase in cash
    
    
    (14,404
    )
    
    
    15,595Beginning cash balance
    
    
    268,272
    
    
    
    251,606Ending cash balance
    
    $
    253,868
    
    
    $
    267,201
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DEL TACO RESTAURANT PROPERTIES I
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
 UNAUDITED
 NOTE 1  BASIS OF PRESENTATION
  NOTE 2  NET INCOME PER LIMITED PARTNERSHIP UNIT
   NOTE 3  LEASING ACTIVITIES
  -6-




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DEL TACO RESTAURANT PROPERTIES I
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
 UNAUDITED
 NOTE 3  LEASING ACTIVITIES  continued
   NOTE 4  TRANSACTIONS WITH DEL TACO
    -7-




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DEL TACO RESTAURANT PROPERTIES I
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
 UNAUDITED
 NOTE 5  DISTRIBUTIONS
  NOTE 6  PAYABLE TO LIMITED PARTNERS
  NOTE 7  CONCENTRATION OF RISK
  NOTE 8  ACQUISITION OF GENERAL PARTNER
  -8-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Liquidity and Capital Resources
   -9-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations 
continued
 Results of Operations
   Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Riverside Avenue, Rialto, CA
    
    $
    30,324
    
    
    $
    30,432
    
    
    $
    86,889
    
    
    $
    89,173Elden Avenue, Moreno Valley, CA
    
    
    29,279
    
    
    
    37,683
    
    
    
    93,676
    
    
    
    108,680Foothill Boulevard, La Verne, CA
    
    
    43,856
    
    
    
    44,659
    
    
    
    129,950
    
    
    
    130,194Baseline & Archibald, Rancho Cucamonga, CA
    
    
    30,179
    
    
    
    31,524
    
    
    
    90,347
    
    
    
    99,595Elkhorn Boulevard, Sacramento, CA
    
    
    17,632
    
    
    
    16,242
    
    
    
    53,633
    
    
    
    50,993Haven Avenue, Rancho Cucamonga, CA
    
    
    29,411
    
    
    
    34,033
    
    
    
    88,827
    
    
    
    108,380Total
    
    $
    180,681
    
    
    $
    194,573
    
    
    $
    543,322
    
    
    $
    587,015
  -10-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations 
continued
  Percent of TotalGeneral & Administrative ExpenseThree Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Accounting fees
    
    
    57.05
    %
    
    
    56.51
    %
    
    
    70.48
    %
    
    
    70.82
    %Distribution of information
to Limited Partners
    
    
    42.95
    %
    
    
    43.49
    %
    
    
    29.52
    %
    
    
    29.18
    %100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
   Significant Recent Accounting Pronouncements
  Off-Balance Sheet Arrangements
 
 Critical Accounting Policies and Estimates
  -11-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations 
continued
 Property and Equipment:
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
  
 Item 4. Controls and Procedures
 (a)
    
    Evaluation of disclosure controls and procedures:
 As of the end of the period covered by this quarterly report, we carried out an
evaluation, under the supervision and with the participation of the Companys management,
including the Companys President and Treasurer, of the effectiveness of the design and
operation of the Companys disclosure controls and procedures. Based upon that
evaluation, the President and Treasurer concluded that the Companys disclosure controls
and procedures are effective in timely alerting them to material information relating to
the Company required to be included in the Companys periodic Securities and Exchange
Commission filings.
 (b)
    
    Changes in internal controls:
 There were no significant changes in the Companys internal controls over financial
reporting that occurred during our most recent fiscal quarter that materially affected,
or is reasonably likely to materially affect, our internal control over financial
reporting.
 (c)
    
    Asset-Backed issuers:
 Not applicable.
 -12-




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PART II. OTHER INFORMATION
  
  (a)
    
    Exhibits
 31.1
    
    
    Shirlene Lopezs Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    
    Steven L. Brakes Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    
    Certification pursuant to subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
 (b)
    
    Reports
 None.
 -13-




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SIGNATURE
  DEL TACO RESTAURANT PROPERTIES I(a California limited partnership)RegistrantDel Taco LLCGeneral PartnerDate: November 13, 2006
    
    /s/ Steven L. BrakeSteven L. BrakeTreasurer
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Exhibit Index
 Exhibits
    
    Description31.1
    
    Shirlene Lopezs Certification pursuant to Section 302 of the Sarbanes-Oxley
Act of 200231.2
    
    Steven L. Brakes Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002