ORD 556 Financial Advisory CommissionORDINANCE NO.556
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, AMENDING CHAPTER 2.70 OF
THE MUNICIPAL CODE TO EXPAND THE MEMBERSHIP AND
DUTIES AND CHANGE THE NAME OF THE INVESTMENT
ADVISORY BOARD TO THE FINANCIAL ADVISORY
COMMISSION IN ORDER TO FULFILL THE CITIZEN
OVERSIGHT DUTIES SET FORTH IN MEASURE G AND
ORDINANCE 540
WHEREAS, in June 2015, the City Council appointed 14 resident volunteers to
an Advisory Committee to evaluate the City's current and long-term financial position;
and
WHEREAS, in January 2016, the Advisory Committee submitted its Final Report,
determining the City's current 10-year planning period projection shows a $50 million
deficit; and
WHEREAS, the Advisory Committee in its Final Report recommended, among
other items; a City -based 1% sales tax increase, subject to voter approval and if
approved, subject to review by a citizen oversight committee; and
WHEREAS, the Advisory Committee recommended the sales tax be a "general
tax" to be used to fund general City services, programs, and projects; and
WHEREAS, on May 17, 2016, the City Council adopted Ordinance No. 540
imposing a one percent transactions and use tax ("1% tax"), and called for the
measure (Measure G) to be placed on November 8, 2016 general election ballot asking
the City's qualified electors to approve the 1% tax; and
WHEREAS, at the November 8, 2016 general election, Measure G was passed
with 54.73% voter approval (8,233 of 15,042 voted yes); and
WHEREAS, Ordinance 540 establishing the 1% tax went into effect December
16, 2016 - ten days after the City Council certified the official canvass of election
results for the General Municipal Election held November 8, 2016; and
WHEREAS, implementation of the 1% tax will begin April 1, 2017 by the State
Board of Equalization with associated revenues transferred to the City quarterly
thereafter; and
WHEREAS, Ordinance No. 540, Section 2 states: "CITIZEN OVERSIGHT. After this
Ordinance [No. 540] becomes effective, the City Council for the City of La Quinta, at an
open and public regular or special meeting, shall adopt a resolution that establishes a
process to ensure that the revenue received by the one percent (1%) transactions and
Ordinance No. 556
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Adopted: April 4, 2017
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use tax imposed under this Ordinance will be subject to annual review by an
independent citizen oversight committee, and will remain used for the provision of
services, programs and capital projects in the City of La Quinta"; and
WHEREAS, the ballot question placed on the November 8, 2016 ballot before
voters was: "Shall an ordinance providing revenue, which the State cannot take, to be
used locally for police protection; projects such as parks, streets, landscaping and
flood control; programs attracting businesses; youth/senior services; sports/recreation
programs; preserving property values and quality of life, by setting a permanent 1%
transactions (sales) and use tax, subject to citizen oversight, raising six million dollars
annually (estimated), with all funds dedicated to general City services, programs and
projects, be adopted?"; and
WHEREAS, during a study session at the March 7, 2017 City Council meeting,
the Council discussed the formation of a citizen oversight committee and provided
direction for its parameters;
WHEREAS, the City finds that it is in the best interests of its citizens to expand
the size and duties of the Investment Advisory Board to include 1% tax oversight
responsibilities, and to change the name to the Financial Advisory Commission;
NOW, THEREFORE, the City Council of the City of La Quinta does ordain as
follows:
SECTION 1. Adoption. Chapter 2.70 of the Code entitled INVESTMENT ADVISORY
BOARD is deleted in its entirety and replaced with revised Chapter 2.70 attached
hereto as "Exhibit A".
SECTION 2. Severability. If any section, subsection, subdivision, sentence, clause,
phrase, or portion of this Ordinance is, for any reason, held to be invalid or
unconstitutional by the decision of any court of competent jurisdiction, such decision
shall not affect the validity of the remaining portions of this Ordinance. The City
Council hereby declares that it would have adopted this Ordinance and each and
every section, subsection, subdivision, sentence, clause, phrase, or portion thereof,
irrespective of the fact that any one or more section, subsections, subdivisions,
sentences, clauses, phrases, or portions thereof be declared unconstitutional.
SECTION 3. Effective Date: This Ordinance shall be in full force and effect thirty (30)
days after its adoption.
SECTION 4. Posting: The City Clerk shall, within 15 days after passage of this
Ordinance, cause it to be posted in at least three public places designated by
resolution of the City Council, shall certify to the adoption and posting of this
Ordinance, and shall cause this Ordinance and its certification, together with proof of
posting to be entered into the permanent record of Ordinances of the City of La
Quinta.
Ordinance No. 556
Municipal Code Chapter 2.70 revisions
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PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City
Council held this 4th day of April 2017 by the following vote:
AYES: Council Members Fitzpatrick, Pena, Radi, Sanchez, Mayor Evans
NOES: None
ABSENT: None
ABSTAIN: None
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
SUSAN MAYSELS, City Cl rk
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
MORGA GALLAGHE� sistant City Attorney
City of La Quinta, Calif rnia
Ordinance No. 556
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Adopted: April 4, 2017
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EXHIBIT A
Chapter 2.70 FINANCIAL ADVISORY COMMISSION
2.70.010 General rules regarding the financial advisory commission.
Except as set out below, see Chapter 2.06 for general provisions.
2.70.020 Number of members.
The Financial Advisory Commission (FAC) shall initially consist of seven members
appointed by, and serving at the will of the city council. The city council may increase
or decrease the number of members from time to time but in no event shall the
membership exceed nine members or be less than five members.
2.70.030 Qualifications of members.
A. In addition to the qualification requirements set forth in Section 2.06.040 of this
code, a minimum of three of the members shall be finance professionals and shall
have a verifiable background in finance and/or securities, preferably with knowledge
and/or experience in markets, financial controls and accounting for securities.
B. For those applying for the professional position, background information will be
requested and potential candidates must agree to a background check and
verification by the city manager or designee.
2.70.040 Powers and duties.
A. The principal functions of the FAC are:
1. Review at least annually the
city's investment policy and recommend
appropriate changes;
2. Review at least quarterly the treasury report and note compliance with the
investment policy and adequacy of cash and investments for anticipated obligations;
3. Receive and consider other reports provided by the city treasurer;
4. Meet with the independent auditor after completion of the annual audit of
the city's financial statements, and receive and consider the auditor's comments on
auditing procedures, internal controls, and findings for cash and investment activities;
5. Review at least annually the revenue derived from the one percent (1%)
transactions and use tax instituted by voters in November 2016 to ensure these funds
are used to provide services, programs and capital projects in the city of La Quinta.
6. Serve as a resource for the city treasurer on matters .such as proposed
investments, internal controls, use of or change of financial institutions, custodians,
brokers and dealers.
B. The FAC will report to the city council after each meeting either in person or
through correspondence at a regular city council meeting.
2.70.050 References to the Investment Advisory Board.
If any other chapter(s) or section(s) in this code refers to the Investment Advisory
Board, that chapter(s) or section(s) shall be deemed to refer to the Financial Advisory
Commission established by the ordinance amending chapter 2.70 of this code.
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LA QUINTA )
I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify the
foregoing to be a full, true, and correct copy of Ordinance No. 556 which was
introduced at a regular meeting on the 21St day of March, 2017 and was adopted at a
regular meeting held on the 4th day of April, 2017 not being less than 5 days after the
date of introduction thereof.
I further certify that the foregoing Ordinance was posted in three places within the
City of La Quinta as specified in the Rules of Procedure adopted by City Council
Resolution No. 2015-023.
SUSAN MAYSELS, City Clerk
City of La Quinta, California
DECLARATION OF POSTING
I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify that
the foregoing ordinance was posted on April 6, 2017, pursuant to Council Resolution.
SUSAN MAYSELS, City Cl k
City of La Quinta, California