Loading...
2017 11 15 FAC Financial Advisory Commission agendas and staff reports are now available on the City’s web page: www.laquintaca.gov City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 15, 2017 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE THE 1ST QUARTER 2017/18 TREASURY REPORTS- JULY, AUGUST, AND SEPTEMBER 2017 RECOMMENDATION Receive and file the 1st quarter 2017/18 Treasury Reports- July, August, and September 2017. BACKGROUND/ANALYSIS Treasurer’s Commentary on 1st Quarter FY 2017/18 For the 1st quarter period of FY 2017/18 (July 1, 2017 through September 30, 2017) the City’s total book value of the portfolio decreased $16.43 million, from $139.49 million on June 30, 2017 to $123.06 million on September 30, 2017. The decrease reflects revenue, expenditure, and investment activities during the quarter. Notably, there was a decrease of $16.8 million in Local Agency Investment Funds (LAIF), the majority of which was used for Successor Agency (SA) debt service bond payments in August. Investment Activity July 2017 • Due to market conditions, a $5 million US Agency Bond with Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) was called on 6/29/17. The proceeds were used to purchase 11 new investments in order to spread maturities for liquidity purposes. All of the new investments settled in July and are listed below. o First Farmers Bank and Trust CD for $240,000 with a coupon rate of 1.65% maturing on 11/21/2019 o Douglas National Bank CD for $240,000 with a coupon rate of 1.65% maturing on 1/21/2020 o Mercantile Bank CD for $240,000 with a coupon rate of 1.75% maturing on 7/7/2020 o First Bank of Highland CD for $240,000 with a coupon rate of 1.75% maturing on 7/13/2020 o Bankers Bank CD for $240,000 with a coupon rate of 1.80% maturing on 1/14/2021 o Central State Bank CD for $240,000 with a coupon rate of 1.85% maturing on 7/14/2021 o Ohio Valley Bank CD for $240,000 with a coupon rate of 1.90% maturing on 1/19/2022 CONSENT CALENDAR ITEM NO. 2 o HSBC Bank CD for $240,000 with a coupon rate of 2.30% maturing on 7/14/2022 o Federal Farm Credit Bank US Agency Bond with a PAR value of $1,000,000 purchased at a discount for $992,600 with a coupon rate of 1.08% maturing on 7/12/2019. This bond is callable. o Federal Home Loan Mortgage Corp US Agency Bond with a PAR value of 1,000,000 purchased at a discount for $999,500 with a coupon rate of 2.00%, maturing on 12/29/2021. This bond is callable. o Federal Home Loan Mortgage Corp US Agency Bond with a PAR value of 1,000,000 and a coupon rate of 2.15%, maturing on 7/27/2022. This bond is callable. • LAIF total was decreased by $1.88 million: o $116,191 in earned interest o $2,000,000 withdrawals • Bank service charges were covered by earnings allowance, no debits or credits were incurred. • In July, the average-days-to-maturity of all investments was 347 days. August 2017 • A new CD was purchased; American Express Federal Savings Bank for $240,000 with a coupon rate of 2.40% maturing on 8/29/2022 • LAIF was decreased by a $15.0 million transfer to the operating account to cover debt service payments on bonds. • Bank service charges were covered by earnings allowance, no debits or credits were incurred. • In August, the average-days-to-maturity of all investments was 344 days. September 2017 • There were no sales, purchases or maturities in the month of September. • Bank service charges were covered by earnings allowance, no debits or credits were incurred. • In September, the average-days-to-maturity of all investments was 367 days. Portfolio Performance Overall during the 1ST quarter of FY 2017/18, market conditions have allowed for active trading to realize gains, increase yields, and spread maturities. The market continued to react to the changing political climate and economic news. Staff worked with the City’s broker partner to capitalize on market conditions. The annual effective rate of return for this fiscal year is 0.95% as of September. Total first quarter interest earnings and gains were as follows: The first quarter portfolio was distributed as follows: Other Notes Money market funds with the fiscal agent are bond proceeds subject to bond indentures, not the City’s investment policy. In June, the City received Successor Agency (SA) property tax revenue to pay for debt service in August. SA funds cannot be invested in long-term investments. Therefore, SA funds are only invested in LAIF. Looking Ahead The Treasurer follows a “buy and hold” investment policy, unless fiscally advantageous to the City to actively trade outside of maturity dates. In the short term the Treasurer will invest in negotiable certificates of deposits and LAIF as needed. Longer term investments may include Government Sponsored Enterprise securities, U.S. Treasuries, and Corporate Notes. All investments recognize the City’s immediate and long-term cash flow needs. ALTERNATIVES - None Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director/City Treasurer Attachments: 1. Treasurer’s Reports for July 1, 2017 to September 30, 2017 Total Earnings July 112,439.04$ August 102,075.57$ September 102,053.13$ Total 316,567.74$ Investment Type July August September Local Agency Investment Fund (LAIF)44%34%37% Federal Agency Coupons 11%11%12% Treasury Coupons 12%12%13% Certificates of Deposit (CD's)9%10%11% Corporate Notes 2%2%2% Bank Accounts 4%3%4% Money Markets with Fiscal Agent 19%29%21% Total 100%100%100% Percent of Portfolio City of La Quinta Portfolio Management August 31, 2017 City of La Quinta - Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 365 Equiv. Local Agency Investment Funds 45,435,606.91 133.57 1.084145,369,590.1545,435,606.91 Federal Agency Coupon Securities 14,473,350.00 1,56610.69 1.7601,28914,412,220.0014,500,000.00 Treasury Coupon Securities 16,417,175.00 1,22312.13 1.28496316,371,195.0016,500,000.00 Certificate of Deposits 13,090,000.00 1,4609.67 1.61978413,103,698.9313,090,000.00 Corporate Notes 2,486,250.00 8631.84 1.4237222,485,105.002,500,000.00 Bank Accounts 4,674,698.86 13.45 0.00014,674,698.864,674,698.86 Money Market with Fiscal Agent 38,786,633.34 128.65 0.000138,786,633.3438,786,633.34 135,363,714.11 100.00%Investments 135,203,141.28135,486,939.11 473 344 0.890 Cash and Accrued Interest 135,364,324.75Total Cash and Investments 610.64Subtotal 610.64 135,203,751.92135,486,939.11 610.64 610.64 473 344 0.890 Accrued Interest at Purchase Current Year August 31 102,075.57 Fiscal Year To Date 214,514.61 Average Daily Balance Effective Rate of Return 124,305,794.24 131,720,050.16 0.96%0.97% Total Earnings Month Ending I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in comformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank monthly statement, The Bank of New York, and First Empire monthly custodian reports to determine the fair market value of investments at month end. Portfolio CITY CP Reporting period 08/01/2017-08/31/2017 Run Date: 11/07/2017 - 11:55 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.6.1 ATTACHMENT 1 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value August 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Local Agency Investment Funds 1Local Agency Inv Fund1055 45,435,606.91 45,435,606.91 1.08445,369,590.15 198-33-434 1.084 45,435,606.91 145,369,590.1545,435,606.9146,887,219.81Subtotal and Average 1 1.084 Federal Agency Coupon Securities 679Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 992,590.00 7323133EGLC7 1.456 1,335Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,459,275.00 1,8263130A7QZ1 1.423 1,151Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,468,550.00 1,4613130A9UQ2 1.375 1,335Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.25004/28/2016 2,495,425.00 1,8263134G8Y37 2.115 1,670Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 2,000,120.00 1,8263134GBAE2 2.106 1,580Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 1,000,180.00 1,6373134GBXF4 2.012 1,790Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 1,000,200.00 1,8263134GBWG3 2.150 878Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,995,880.00 1,0363135G0S53 1.700 14,473,350.00 1,56614,412,220.0014,500,000.0014,473,350.00Subtotal and Average 1,289 1.760 Treasury Coupon Securities 1,398U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,915,250.00 1,808912828S27 1.125 409U.S. Treasury1063 2,500,000.00 2,502,250.00 10/15/20180.87510/24/2016 2,489,250.00 721912828L81 0.829 942U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,499,600.00 1,107912828J84 1.602 835U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,501,075.00 1,000912828U73 1.513 1,521U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,969,460.00 1,679912828T67 1.903 211U.S. Treasury1071 2,000,000.00 1,998,125.00 03/31/20180.87503/27/2017 1,996,560.00 369912828Q45 0.968 16,417,175.00 1,22316,371,195.0016,500,000.0016,417,175.00Subtotal and Average 963 1.284 Certificate of Deposits 626First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 240,424.80 1,82631938QH72 1.751 811First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 239,563.20 853320165HX4 1.653 424First Merchants Bank1020 240,000.00 240,000.00 10/30/20181.50004/30/2014 240,717.60 1,64432082BDF3 1.501 101First National-Mayfield1044 248,000.00 248,000.00 12/11/20171.00006/11/2015 247,997.52 914330459AY4 1.002 150Third Saving Bank and Loan1038 240,000.00 240,000.00 01/29/20181.25004/29/2014 240,040.80 1,37188413QAN8 1.251 479Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 240,218.40 1,09602006LWX7 1.702 1,326Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 241,821.60 1,46102587DP85 2.252 1,823American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 241,543.20 1,82602587CFU9 2.402 605Barclays Bank1003 240,000.00 240,000.00 04/29/20191.90004/29/2014 241,396.80 1,82606740KGR2 1.901 241Berkshire Bank1004 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,314.40 1,461084601AL7 1.351 1,637BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 241,348.80 1,82605580AGK4 2.201 1,231Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 239,479.20 1,28006610RAP4 1.804 Portfolio CITY CP Run Date: 11/07/2017 - 11:55 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.6.1 Days to Maturity Page 2 Par Value Book Value Maturity Date Stated RateMarket Value August 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 1,375Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 243,237.60 1,46114042RGD7 2.252 1,013Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 245,855.05 1,827140420RX0 1.902 199Carolina Alliance1007 248,000.00 248,000.00 03/19/20181.00006/19/2015 247,618.08 1,00414376RAM9 1.000 1,270Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 238,632.00 1,82720033APG5 1.702 347CitiBank1008240,000.00 240,000.00 08/14/20181.90008/14/2013 240,950.40 1,82617284CKN3 1.901 1,412Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 239,728.80 1,46115523RBJ4 1.851 277Compass Bank1010 248,000.00 248,000.00 06/05/20181.35006/05/2015 247,942.96 1,09620451PLG9 1.351 642Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 247,942.96 1,46120786ABD6 1.501 241Cornerstone Community Bank1012 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,028.80 1,461219240AZ1 1.351 241Crescent Bank and Trust1013 240,000.00 240,000.00 04/30/20181.30004/30/2014 239,949.60 1,461225645DC1 1.301 1,614Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 242,078.40 1,8262546722U1 2.251 872Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 239,383.20 916259744DS6 1.655 196Embassy National1015 248,000.00 248,000.00 03/16/20181.00006/17/2015 247,871.04 1,003290800AL5 1.000 606Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 241,440.00 1,826294209AQ4 1.651 1,008EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 247,208.88 1,82729976DXX3 1.702 522Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 246,804.64 1,341307814DC4 1.252 626Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 240,427.20 1,827402194EB6 1.724 1,698Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 242,834.40 1,82638148PJK4 2.401 1,046First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 239,431.20 1,096319141GT8 1.752 1,777HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 240,962.40 1,82640434YLE5 2.300 133Independent Bank1025 248,000.00 248,000.00 01/12/20180.90006/12/2015 247,970.24 94545383UQY4 0.902 277MB Financial Bank1027 248,000.00 248,000.00 06/05/20181.10006/05/2015 247,737.12 1,09655266CME3 1.101 236Medallion Bank1028 240,000.00 240,000.00 04/25/20181.35004/25/2014 240,036.00 1,46158403BL95 1.351 1,040Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 239,450.40 1,09658740XZL7 1.750 283MFR Trade & Trust1026 248,000.00 248,000.00 06/11/20181.20006/10/2015 247,635.44 1,097564759QT8 1.033 1,015Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 246,846.80 1,827063615AVO 1.652 467Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,613.12 1,279619165GE7 1.251 250Merrick Bank1029 240,000.00 240,000.00 05/09/20181.35005/09/2014 240,324.00 1,46159012Y6Q5 1.351 1,601The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 238,684.80 1,645677721CN0 1.903 634Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 241,449.60 1,826704692AL6 1.801 1,363PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 237,604.80 1,82674267GVG9 1.501 318Regal Bank1033 240,000.00 240,000.00 07/16/20181.40005/16/2014 240,396.00 1,52275874TAH4 1.401 1,179Fist Bank RIchmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 244,519.80 1,251319267GC8 1.802 734Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 248,096.72 1,55376951DAL4 1.402 1,754Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 241,740.00 1,826795450A70 2.351 220South Atlantic1036 248,000.00 248,000.00 04/09/20181.00006/09/2015 247,538.72 1,03583637AAP9 1.001 Portfolio CITY CP Run Date: 11/07/2017 - 11:55 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value August 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 641Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 247,945.44 1,46183427LAX2 1.401 963Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 238,768.80 1,096857894TC3 1.588 1,735Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 242,474.40 1,82687164XQV1 2.401 90Traverse City1040 240,000.00 240,000.00 11/30/20171.10005/30/2014 240,141.60 1,280894333FE8 1.102 599Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 241,396.80 1,82694768NJQ8 1.801 543Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 240,134.40 1,0969497483N5 1.201 13,090,000.00 1,46013,103,698.9313,090,000.0012,873,225.81Subtotal and Average 784 1.619 Corporate Notes 1,433Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 493,025.00 1,514037833CC2 1.900 546Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,992,080.00 702478160BR4 1.305 2,486,250.00 8632,485,105.002,500,000.002,486,250.00Subtotal and Average 722 1.423 Bank Accounts 1First Empire Bank1060 0.00 0.0007/01/2016 0.00 1SYS1060 0.000 1La Quinta Palms Realty1062 106,157.03 106,157.0307/01/2016 106,157.03 1SYS1062 0.000 1Wells Fargo1057 3,466,977.96 3,466,977.9607/01/2016 3,466,977.96 14159282482 0.000 1Wells Fargo1059 1,700.00 1,700.0007/01/2016 1,700.00 1SYS1059 0.000 1Washington St Apt La Quinta1061 1,099,863.87 1,099,863.8707/01/2016 1,099,863.87 1SYS1061 0.000 4,674,698.86 14,674,698.864,674,698.865,159,679.71Subtotal and Average 1 0.000 Money Market with Fiscal Agent 1US Bank1058 38,786,633.34 38,786,633.3407/01/2016 38,786,633.34 1SYS1058 0.000 38,786,633.34 138,786,633.3438,786,633.3426,008,893.91Subtotal and Average 1 0.000 473124,305,794.24 135,486,939.11 344 0.890135,203,141.28 135,363,714.11Total and Average Portfolio CITY CP Run Date: 11/07/2017 - 11:55 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Stated RateMarket Value August 31, 2017 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 0.00 473124,305,794.24 135,486,939.11 344 0.890 0 0 610.64 610.64 610.64 610.64 Subtotal Accrued Interest at PurchaseAverage Balance 135,203,751.92 135,364,324.75Total Cash and Investments Portfolio CITY CP Run Date: 11/07/2017 - 11:55 PM (PRF_PM2) 7.3.0 Page 1 Stated Rate Transaction Date August 1, 2017 through August 31, 2017 Activity By Type Balance Beginning Balance Ending Portfolio Management City of La Quinta CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals Local Agency Investment Funds (Monthly Summary) Local Agency Inv Fund1055 0.001.084 15,000,000.0098-33-434 15,000,000.0060,435,606.91 45,435,606.91Subtotal0.00 Federal Agency Coupon Securities 14,473,350.00 14,473,350.00Subtotal Treasury Coupon Securities 16,417,175.00 16,417,175.00Subtotal Certificate of Deposits American Express Fed Savings B1096 240,000.002.400 08/29/2017 0.0002587CFU9 0.0012,850,000.00 13,090,000.00Subtotal240,000.00 Corporate Notes 2,486,250.00 2,486,250.00Subtotal Bank Accounts First Empire Bank1060 259,840.35 342,067.02SYS1060 La Quinta Palms Realty1062 11,415.32 0.00SYS1062 Wells Fargo1057 17,845,995.53 18,229,382.014159282482 Washington St Apt La Quinta1061 0.00 2,333.58SYS1061 18,573,782.615,131,230.27 4,674,698.86Subtotal18,117,251.20 Money Market with Fiscal Agent US Bank1058 13,203,664.08 0.00SYS1058 0.0025,582,969.26 38,786,633.34Subtotal13,203,664.08 137,376,581.44 135,363,714.11Total33,573,782.6131,560,915.28 Portfolio CITY CP Run Date: 11/07/2017 - 11:55 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.6.1 Page 1 August 31, 2017 Interest Earnings Summary Month EndingAugust 31 Fiscal Year To Date Portfolio Management City of La Quinta CD/Coupon/Discount Investments: 17,040.54Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 155,132.71 ( 117,262.84) 34,782.04 155,132.71 ( 83,592.53) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Capital Gains or Losses Earnings during Periods 54,910.41 0.00 106,322.22 0.00 54,910.41 106,322.22 Pass Through Securities: 0.00Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 0.00 ( 0.00) 0.00 0.00 ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash/Checking Accounts: 4,390.47Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 54,743.49 ( 11,968.80) 125,076.51 54,743.49 ( 71,627.61) Interest Earned during Period 47,165.16 108,192.39 Total Interest Earned during Period Total Capital Gains or Losses Total Earnings during Period 102,075.57 0.00 214,514.61 0.00 102,075.57 214,514.61 Portfolio CITY CP Run Date: 11/07/2017 - 11:55 PM (PRF_PM6) 7.3.0 Report Ver. 7.3.6.1 City of La Quinta Portfolio Management July 31, 2017 City of La Quinta - Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 365 Equiv. Local Agency Investment Funds 60,435,606.91 143.99 1.051160,369,590.1560,435,606.91 Federal Agency Coupon Securities 14,473,350.00 1,56610.54 1.7601,32014,368,995.0014,500,000.00 Treasury Coupon Securities 16,417,175.00 1,22311.95 1.28499416,328,015.0016,500,000.00 Certificate of Deposits 12,850,000.00 1,4539.35 1.60579612,854,801.5412,850,000.00 Corporate Notes 2,486,250.00 8631.81 1.4237532,480,075.002,500,000.00 Bank Accounts 5,131,230.27 13.74 0.00015,131,230.275,131,230.27 Money Market with Fiscal Agent 25,582,969.26 118.62 0.000125,582,969.2625,582,969.26 137,376,581.44 100.00%Investments 137,115,676.22137,499,806.44 463 347 0.977 Cash and Accrued Interest 137,377,192.08Total Cash and Investments 610.64Subtotal 610.64 137,116,286.86137,499,806.44 610.64 610.64 463 347 0.977 Accrued Interest at Purchase Current Year July 31 112,439.04 Fiscal Year To Date 112,439.04 Average Daily Balance Effective Rate of Return 139,134,306.09 139,134,306.09 0.95%0.95% Total Earnings Month Ending I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in comformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank monthly statement, The Bank of New York, and First Empire monthly custodian reports to determine the fair market value of investments at month end. Portfolio CITY CP Reporting period 07/01/2017-07/31/2017 Run Date: 11/07/2017 - 11:54 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.6.1 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value July 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Local Agency Investment Funds 1Local Agency Inv Fund1055 60,435,606.91 60,435,606.91 1.05160,369,590.15 198-33-434 1.051 60,435,606.91 160,369,590.1560,435,606.9161,967,526.77Subtotal and Average 1 1.051 Federal Agency Coupon Securities 710Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 991,750.00 7323133EGLC7 1.456 1,366Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,433,075.00 1,8263130A7QZ1 1.423 1,182Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,460,325.00 1,4613130A9UQ2 1.375 1,366Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.25004/28/2016 2,488,875.00 1,8263134G8Y37 2.115 1,701Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,997,680.00 1,8263134GBAE2 2.106 1,611Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 997,970.00 1,6373134GBXF4 2.012 1,821Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 1,000,040.00 1,8263134GBWG3 2.150 909Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,999,280.00 1,0363135G0S53 1.700 14,473,350.00 1,56614,368,995.0014,500,000.0013,185,256.45Subtotal and Average 1,320 1.760 Treasury Coupon Securities 1,429U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,892,000.00 1,808912828S27 1.125 440U.S. Treasury1063 2,500,000.00 2,502,250.00 10/15/20180.87510/24/2016 2,487,800.00 721912828L81 0.829 973U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,495,325.00 1,107912828J84 1.602 866U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,498,050.00 1,000912828U73 1.513 1,552U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,958,980.00 1,679912828T67 1.903 242U.S. Treasury1071 2,000,000.00 1,998,125.00 03/31/20180.87503/27/2017 1,995,860.00 369912828Q45 0.968 16,417,175.00 1,22316,328,015.0016,500,000.0016,417,175.00Subtotal and Average 994 1.284 Certificate of Deposits 657First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 240,674.40 1,82631938QH72 1.751 842First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 239,731.20 853320165HX4 1.653 455First Merchants Bank1020 240,000.00 240,000.00 10/30/20181.50004/30/2014 240,916.80 1,64432082BDF3 1.501 132First National-Mayfield1044 248,000.00 248,000.00 12/11/20171.00006/11/2015 247,918.16 914330459AY4 1.002 181Third Saving Bank and Loan1038 240,000.00 240,000.00 01/29/20181.25004/29/2014 239,959.20 1,37188413QAN8 1.251 510Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 240,403.20 1,09602006LWX7 1.702 1,357Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 240,933.60 1,46102587DP85 2.252 636Barclays Bank1003 240,000.00 240,000.00 04/29/20191.90004/29/2014 241,687.20 1,82606740KGR2 1.901 272Berkshire Bank1004 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,333.60 1,461084601AL7 1.351 1,668BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 240,494.40 1,82605580AGK4 2.201 1,262Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 239,001.60 1,28006610RAP4 1.804 1,406Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 242,397.60 1,46114042RGD7 2.252 Portfolio CITY CP Run Date: 11/07/2017 - 11:54 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.6.1 Days to Maturity Page 2 Par Value Book Value Maturity Date Stated RateMarket Value July 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 1,044Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 245,828.10 1,827140420RX0 1.902 230Carolina Alliance1007 248,000.00 248,000.00 03/19/20181.00006/19/2015 247,504.00 1,00414376RAM9 1.000 1,301Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 238,024.80 1,82720033APG5 1.702 378CitiBank1008240,000.00 240,000.00 08/14/20181.90008/14/2013 241,101.60 1,82617284CKN3 1.901 1,443Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 238,692.00 1,46115523RBJ4 1.851 308Compass Bank1010 248,000.00 248,000.00 06/05/20181.35006/05/2015 247,928.08 1,09620451PLG9 1.351 673Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 248,183.52 1,46120786ABD6 1.501 272Cornerstone Community Bank1012 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,009.60 1,461219240AZ1 1.351 272Crescent Bank and Trust1013 240,000.00 240,000.00 04/30/20181.30004/30/2014 239,920.80 1,461225645DC1 1.301 1,645Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 241,176.00 1,8262546722U1 2.251 903Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 239,486.40 916259744DS6 1.655 227Embassy National1015 248,000.00 248,000.00 03/16/20181.00006/17/2015 247,794.16 1,003290800AL5 1.000 637Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 241,735.20 1,826294209AQ4 1.651 1,039EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 247,139.44 1,82729976DXX3 1.702 553Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 246,926.16 1,341307814DC4 1.252 657Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 240,676.80 1,827402194EB6 1.724 1,729Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 242,181.60 1,82638148PJK4 2.401 1,077First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 239,313.60 1,096319141GT8 1.752 1,808HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 240,528.00 1,82640434YLE5 2.300 164Independent Bank1025 248,000.00 248,000.00 01/12/20180.90006/12/2015 247,876.00 94545383UQY4 0.902 308MB Financial Bank1027 248,000.00 248,000.00 06/05/20181.10006/05/2015 247,699.92 1,09655266CME3 1.101 267Medallion Bank1028 240,000.00 240,000.00 04/25/20181.35004/25/2014 240,019.20 1,46158403BL95 1.351 1,071Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 239,344.80 1,09658740XZL7 1.750 314MFR Trade & Trust1026 248,000.00 248,000.00 06/11/20181.20006/10/2015 247,590.80 1,097564759QT8 1.033 1,046Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 246,757.52 1,827063615AVO 1.652 498Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,756.96 1,279619165GE7 1.251 281Merrick Bank1029 240,000.00 240,000.00 05/09/20181.35005/09/2014 240,343.20 1,46159012Y6Q5 1.351 1,632The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 237,691.20 1,645677721CN0 1.903 665Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 241,752.00 1,826704692AL6 1.801 1,394PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 236,690.40 1,82674267GVG9 1.501 349Regal Bank1033 240,000.00 240,000.00 07/16/20181.40005/16/2014 240,460.80 1,52275874TAH4 1.401 1,210Fist Bank RIchmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 244,176.80 1,251319267GC8 1.802 765Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 248,359.60 1,55376951DAL4 1.402 1,785Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 241,240.80 1,826795450A70 2.351 251South Atlantic1036 248,000.00 248,000.00 04/09/20181.00006/09/2015 247,439.52 1,03583637AAP9 1.001 672Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 248,186.00 1,46183427LAX2 1.401 Portfolio CITY CP Run Date: 11/07/2017 - 11:54 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value July 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 994Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 238,747.20 1,096857894TC3 1.588 1,766Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 241,927.20 1,82687164XQV1 2.401 121Traverse City1040 240,000.00 240,000.00 11/30/20171.10005/30/2014 240,117.60 1,280894333FE8 1.102 630Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 241,687.20 1,82694768NJQ8 1.801 574Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 240,336.00 1,0969497483N5 1.201 12,850,000.00 1,45312,854,801.5412,850,000.0011,975,161.29Subtotal and Average 796 1.605 Corporate Notes 1,464Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 490,915.00 1,514037833CC2 1.900 577Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,989,160.00 702478160BR4 1.305 2,486,250.00 8632,480,075.002,500,000.002,486,250.00Subtotal and Average 753 1.423 Bank Accounts 1First Empire Bank1060 82,226.67 82,226.6707/01/2016 82,226.67 1SYS1060 0.000 1La Quinta Palms Realty1062 94,741.71 94,741.7107/01/2016 94,741.71 1SYS1062 0.000 1Wells Fargo1057 3,850,364.44 3,850,364.4407/01/2016 3,850,364.44 14159282482 0.000 1Wells Fargo1059 1,700.00 1,700.0007/01/2016 1,700.00 1SYS1059 0.000 1Washington St Apt La Quinta1061 1,102,197.45 1,102,197.4507/01/2016 1,102,197.45 1SYS1061 0.000 5,131,230.27 15,131,230.275,131,230.277,524,036.79Subtotal and Average 1 0.000 Money Market with Fiscal Agent 1US Bank1058 25,582,969.26 25,582,969.2607/01/2016 25,582,969.26 1SYS1058 0.000 25,582,969.26 125,582,969.2625,582,969.2625,578,899.79Subtotal and Average 1 0.000 463139,134,306.09 137,499,806.44 347 0.977137,115,676.22 137,376,581.44Total and Average Portfolio CITY CP Run Date: 11/07/2017 - 11:54 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Stated RateMarket Value July 31, 2017 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 0.00 463139,134,306.09 137,499,806.44 347 0.977 0 0 610.64 610.64 610.64 610.64 Subtotal Accrued Interest at PurchaseAverage Balance 137,116,286.86 137,377,192.08Total Cash and Investments Portfolio CITY CP Run Date: 11/07/2017 - 11:54 PM (PRF_PM2) 7.3.0 Page 1 Stated Rate Transaction Date July 1, 2017 through July 31, 2017 Activity By Type Balance Beginning Balance Ending Portfolio Management City of La Quinta CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals Local Agency Investment Funds (Monthly Summary) Local Agency Inv Fund1055 116,191.101.051 2,000,000.0098-33-434 2,000,000.0062,319,415.81 60,435,606.91Subtotal116,191.10 Federal Agency Coupon Securities Federal Farm Credit Bank1092 992,600.001.080 07/10/2017 0.003133EGLC7 Federal Home Loan Mtg Corp1084 999,500.002.000 07/06/2017 0.003134GBXF4 Federal Home Loan Mtg Corp1090 1,000,000.002.150 07/27/2017 0.003134GBWG3 0.0011,481,250.00 14,473,350.00Subtotal2,992,100.00 Treasury Coupon Securities 16,417,175.00 16,417,175.00Subtotal Certificate of Deposits First Farmers Bank &Trust Co.1091 240,000.001.650 07/21/2017 0.00320165HX4 Bankers Bank1086 240,000.001.800 07/14/2017 0.0006610RAP4 Central State Bank1085 240,000.001.850 07/14/2017 0.0015523RBJ4 Douglas National Bank1093 240,000.001.650 07/19/2017 0.00259744DS6 First Bank of Highland1094 240,000.001.750 07/13/2017 0.00319141GT8 HSBC Bank USA, National Associ1088 240,000.002.300 07/14/2017 0.0040434YLE5 Mercantile Bank of Michigan1087 240,000.001.750 07/07/2017 0.0058740XZL7 The Ohio Valley Bank1089 240,000.001.900 07/19/2017 0.00677721CN0 0.0010,930,000.00 12,850,000.00Subtotal1,920,000.00 Corporate Notes 2,486,250.00 2,486,250.00Subtotal Bank Accounts First Empire Bank1060 29,037.98 4,946,811.31SYS1060 La Quinta Palms Realty1062 7,369.72 0.00SYS1062 Wells Fargo1057 4,401,320.11 4,663,466.994159282482 Washington St Apt La Quinta1061 18,897.98 0.00SYS1061 9,610,278.3010,284,882.78 5,131,230.27Subtotal4,456,625.79 Money Market with Fiscal Agent US Bank1058 4,205.12 0.00SYS1058 Portfolio CITY CP Run Date: 11/07/2017 - 11:54 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.6.1 Page 2 Stated Rate Transaction Date July 1, 2017 through July 31, 2017 Activity By Type Balance Beginning Balance Ending Portfolio Management City of La Quinta CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals 0.0025,578,764.14 25,582,969.26Subtotal4,205.12 139,497,737.73 137,376,581.44Total11,610,278.309,489,122.01 Portfolio CITY CP Run Date: 11/07/2017 - 11:54 PM (PRF_PM3) 7.3.0 Page 1 July 31, 2017 Interest Earnings Summary Month EndingJuly 31 Fiscal Year To Date Portfolio Management City of La Quinta CD/Coupon/Discount Investments: 17,741.50Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 117,262.84 ( 83,592.53) 17,741.50 117,262.84 ( 83,592.53) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Capital Gains or Losses Earnings during Periods 51,411.81 0.00 51,411.81 0.00 51,411.81 51,411.81 Pass Through Securities: 0.00Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 0.00 ( 0.00) 0.00 0.00 ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash/Checking Accounts: 120,686.04Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 11,968.80 ( 71,627.61) 120,686.04 11,968.80 ( 71,627.61) Interest Earned during Period 61,027.23 61,027.23 Total Interest Earned during Period Total Capital Gains or Losses Total Earnings during Period 112,439.04 0.00 112,439.04 0.00 112,439.04 112,439.04 Portfolio CITY CP Run Date: 11/07/2017 - 11:54 PM (PRF_PM6) 7.3.0 Report Ver. 7.3.6.1 City of La Quinta Portfolio Management September 30, 2017 City of La Quinta - Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 365 Equiv. Local Agency Investment Funds 45,435,606.91 136.92 1.111145,369,590.1545,435,606.91 Federal Agency Coupon Securities 14,473,350.00 1,56611.76 1.7601,25914,351,975.0014,500,000.00 Treasury Coupon Securities 16,417,175.00 1,22313.34 1.28493316,303,695.0016,500,000.00 Certificate of Deposits 13,090,000.00 1,46010.64 1.61975413,097,922.3013,090,000.00 Corporate Notes 2,486,250.00 8632.02 1.4236922,475,915.002,500,000.00 Bank Accounts 4,914,491.04 13.99 0.00014,914,491.044,914,491.04 Money Market with Fiscal Agent 26,241,506.96 121.32 0.000126,241,506.9626,241,506.96 123,058,379.91 100.00%Investments 122,755,095.45123,181,604.91 521 367 0.989 Cash and Accrued Interest 123,058,990.55Total Cash and Investments 610.64Subtotal 610.64 122,755,706.09123,181,604.91 610.64 610.64 521 367 0.989 Accrued Interest at Purchase Current Year September 30 102,053.13 Fiscal Year To Date 316,567.74 Average Daily Balance Effective Rate of Return 134,953,540.59 132,774,449.21 0.95%0.92% Total Earnings Month Ending I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in comformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank monthly statement, The Bank of New York, and First Empire monthly custodian reports to determine the fair market value of investments at month end. Portfolio CITY CP Reporting period 09/01/2017-09/30/2017 Run Date: 11/07/2017 - 11:57 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.6.1 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value September 30, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Local Agency Investment Funds 1Local Agency Inv Fund1055 45,435,606.91 45,435,606.91 1.11145,369,590.15 198-33-434 1.111 45,435,606.91 145,369,590.1545,435,606.9145,435,606.91Subtotal and Average 1 1.111 Federal Agency Coupon Securities 649Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 989,300.00 7323133EGLC7 1.456 1,305Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,442,825.00 1,8263130A7QZ1 1.423 1,121Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,456,225.00 1,4613130A9UQ2 1.375 1,305Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.25004/28/2016 2,485,475.00 1,8263134G8Y37 2.115 1,640Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,989,760.00 1,8263134GBAE2 2.106 1,550Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 994,330.00 1,6373134GBXF4 2.012 1,760Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 996,560.00 1,8263134GBWG3 2.150 848Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,997,500.00 1,0363135G0S53 1.700 14,473,350.00 1,56614,351,975.0014,500,000.0014,473,350.00Subtotal and Average 1,259 1.760 Treasury Coupon Securities 1,368U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,884,400.00 1,808912828S27 1.125 379U.S. Treasury1063 2,500,000.00 2,502,250.00 10/15/20180.87510/24/2016 2,486,925.00 721912828L81 0.829 912U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,488,375.00 1,107912828J84 1.602 805U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,492,275.00 1,000912828U73 1.513 1,491U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,955,320.00 1,679912828T67 1.903 181U.S. Treasury1071 2,000,000.00 1,998,125.00 03/31/20180.87503/27/2017 1,996,400.00 369912828Q45 0.968 16,417,175.00 1,22316,303,695.0016,500,000.0016,417,175.00Subtotal and Average 933 1.284 Certificate of Deposits 596First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 240,460.80 1,82631938QH72 1.751 781First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 239,596.80 853320165HX4 1.653 394First Merchants Bank1020 240,000.00 240,000.00 10/30/20181.50004/30/2014 240,708.00 1,64432082BDF3 1.501 71First National-Mayfield1044 248,000.00 248,000.00 12/11/20171.00006/11/2015 248,032.24 914330459AY4 1.002 120Third Saving Bank and Loan1038 240,000.00 240,000.00 01/29/20181.25004/29/2014 240,069.60 1,37188413QAN8 1.251 449Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 240,249.60 1,09602006LWX7 1.702 1,296Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 240,806.40 1,46102587DP85 2.252 1,793American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 241,322.40 1,82602587CFU9 2.402 575Barclays Bank1003 240,000.00 240,000.00 04/29/20191.90004/29/2014 241,382.40 1,82606740KGR2 1.901 211Berkshire Bank1004 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,343.20 1,461084601AL7 1.351 1,607BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 240,981.60 1,82605580AGK4 2.201 1,201Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 239,025.60 1,28006610RAP4 1.804 Portfolio CITY CP Run Date: 11/07/2017 - 11:57 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.6.1 Days to Maturity Page 2 Par Value Book Value Maturity Date Stated RateMarket Value September 30, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 1,345Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 242,505.60 1,46114042RGD7 2.252 983Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 245,678.65 1,827140420RX0 1.902 169Carolina Alliance1007 248,000.00 248,000.00 03/19/20181.00006/19/2015 247,729.68 1,00414376RAM9 1.000 1,240Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 238,147.20 1,82720033APG5 1.702 317CitiBank1008240,000.00 240,000.00 08/14/20181.90008/14/2013 240,974.40 1,82617284CKN3 1.901 1,382Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 239,016.00 1,46115523RBJ4 1.851 247Compass Bank1010 248,000.00 248,000.00 06/05/20181.35006/05/2015 248,032.24 1,09620451PLG9 1.351 612Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 248,002.48 1,46120786ABD6 1.501 211Cornerstone Community Bank1012 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,091.20 1,461219240AZ1 1.351 211Crescent Bank and Trust1013 240,000.00 240,000.00 04/30/20181.30004/30/2014 240,021.60 1,461225645DC1 1.301 1,584Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 241,656.00 1,8262546722U1 2.251 842Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 239,378.40 916259744DS6 1.655 166Embassy National1015 248,000.00 248,000.00 03/16/20181.00006/17/2015 247,947.92 1,003290800AL5 1.000 576Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 241,425.60 1,826294209AQ4 1.651 978EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 247,082.40 1,82729976DXX3 1.702 492Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 246,918.72 1,341307814DC4 1.252 596Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 240,463.20 1,827402194EB6 1.724 1,668Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 242,558.40 1,82638148PJK4 2.401 1,016First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 239,263.20 1,096319141GT8 1.752 1,747HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 240,873.60 1,82640434YLE5 2.300 103Independent Bank1025 248,000.00 248,000.00 01/12/20180.90006/12/2015 248,004.96 94545383UQY4 0.902 247MB Financial Bank1027 248,000.00 248,000.00 06/05/20181.10006/05/2015 247,848.72 1,09655266CME3 1.101 206Medallion Bank1028 240,000.00 240,000.00 04/25/20181.35004/25/2014 240,098.40 1,46158403BL95 1.351 1,010Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 239,289.60 1,09658740XZL7 1.750 253MFR Trade & Trust1026 248,000.00 248,000.00 06/11/20181.20006/10/2015 247,759.44 1,097564759QT8 1.033 985Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 246,722.80 1,827063615AVO 1.652 437Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,682.56 1,279619165GE7 1.251 220Merrick Bank1029 240,000.00 240,000.00 05/09/20181.35005/09/2014 240,355.20 1,46159012Y6Q5 1.351 1,571The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 238,303.20 1,645677721CN0 1.903 604Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 241,440.00 1,826704692AL6 1.801 1,333PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 237,014.40 1,82674267GVG9 1.501 288Regal Bank1033 240,000.00 240,000.00 07/16/20181.40005/16/2014 240,458.40 1,52275874TAH4 1.401 1,149Fist Bank RIchmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 244,120.45 1,251319267GC8 1.802 704Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 248,153.76 1,55376951DAL4 1.402 1,724Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 241,591.20 1,826795450A70 2.351 190South Atlantic1036 248,000.00 248,000.00 04/09/20181.00006/09/2015 247,662.72 1,03583637AAP9 1.001 Portfolio CITY CP Run Date: 11/07/2017 - 11:57 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value September 30, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 611Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 248,004.96 1,46183427LAX2 1.401 933Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 238,704.00 1,096857894TC3 1.588 1,705Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 242,275.20 1,82687164XQV1 2.401 60Traverse City1040 240,000.00 240,000.00 11/30/20171.10005/30/2014 240,129.60 1,280894333FE8 1.102 569Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 241,382.40 1,82694768NJQ8 1.801 513Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 240,175.20 1,0969497483N5 1.201 13,090,000.00 1,46013,097,922.3013,090,000.0013,090,000.00Subtotal and Average 754 1.619 Corporate Notes 1,403Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 490,175.00 1,514037833CC2 1.900 516Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,985,740.00 702478160BR4 1.305 2,486,250.00 8632,475,915.002,500,000.002,486,250.00Subtotal and Average 692 1.423 Bank Accounts 1First Empire Bank1060 38,585.85 38,585.8507/01/2016 38,585.85 1SYS1060 0.000 1La Quinta Palms Realty1062 119,452.87 119,452.8707/01/2016 119,452.87 1SYS1062 0.000 1Wells Fargo1057 3,636,712.72 3,636,712.7207/01/2016 3,636,712.72 14159282482 0.000 1Wells Fargo1059 1,700.00 1,700.0007/01/2016 1,700.00 1SYS1059 0.000 1Washington St Apt La Quinta1061 1,118,039.60 1,118,039.6007/01/2016 1,118,039.60 1SYS1061 0.000 4,914,491.04 14,914,491.044,914,491.044,682,696.22Subtotal and Average 1 0.000 Money Market with Fiscal Agent 1US Bank1058 26,241,506.96 26,241,506.9607/01/2016 26,241,506.96 1SYS1058 0.000 26,241,506.96 126,241,506.9626,241,506.9638,368,462.46Subtotal and Average 1 0.000 521134,953,540.59 123,181,604.91 367 0.989122,755,095.45 123,058,379.91Total and Average Portfolio CITY CP Run Date: 11/07/2017 - 11:57 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Stated RateMarket Value September 30, 2017 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 0.00 521134,953,540.59 123,181,604.91 367 0.989 0 0 610.64 610.64 610.64 610.64 Subtotal Accrued Interest at PurchaseAverage Balance 122,755,706.09 123,058,990.55Total Cash and Investments Portfolio CITY CP Run Date: 11/07/2017 - 11:57 PM (PRF_PM2) 7.3.0 Page 1 Stated Rate Transaction Date September 1, 2017 through September 30, 2017 Activity By Type Balance Beginning Balance Ending Portfolio Management City of La Quinta CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals Local Agency Investment Funds (Monthly Summary) 45,435,606.91 45,435,606.91Subtotal Federal Agency Coupon Securities 14,473,350.00 14,473,350.00Subtotal Treasury Coupon Securities 16,417,175.00 16,417,175.00Subtotal Certificate of Deposits 13,090,000.00 13,090,000.00Subtotal Corporate Notes 2,486,250.00 2,486,250.00Subtotal Bank Accounts First Empire Bank1060 38,585.85 0.00SYS1060 La Quinta Palms Realty1062 13,295.84 0.00SYS1062 Wells Fargo1057 2,874,641.65 2,704,906.894159282482 Washington St Apt La Quinta1061 18,175.73 0.00SYS1061 2,704,906.894,674,698.86 4,914,491.04Subtotal2,944,699.07 Money Market with Fiscal Agent US Bank1058 657,771.28 13,202,897.66SYS1058 13,202,897.6638,786,633.34 26,241,506.96Subtotal657,771.28 135,363,714.11 123,058,379.91Total15,907,804.553,602,470.35 Portfolio CITY CP Run Date: 11/07/2017 - 11:57 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.6.1 Page 1 September 30, 2017 Interest Earnings Summary Month EndingSeptember 30 Fiscal Year To Date Portfolio Management City of La Quinta CD/Coupon/Discount Investments: 36,824.16Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 172,563.92 ( 155,132.71) 71,606.20 172,563.92 ( 83,592.53) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Capital Gains or Losses Earnings during Periods 54,255.37 0.00 160,577.59 0.00 54,255.37 160,577.59 Pass Through Securities: 0.00Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 0.00 ( 0.00) 0.00 0.00 ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash/Checking Accounts: 7,684.47Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 94,856.78 ( 54,743.49) 132,760.98 94,856.78 ( 71,627.61) Interest Earned during Period 47,797.76 155,990.15 Total Interest Earned during Period Total Capital Gains or Losses Total Earnings during Period 102,053.13 0.00 316,567.74 0.00 102,053.13 316,567.74 Portfolio CITY CP Run Date: 11/07/2017 - 11:57 PM (PRF_PM6) 7.3.0 Report Ver. 7.3.6.1 US Treasury Rates  https://www.treasury.gov/resource‐center/data‐chart‐center/interest‐ rates/Pages/TextView.aspx?data=yieldYear&year=2017        Commercial Paper Rates  https://www.federalreserve.gov/releases/cp/rates.htm      City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 15, 2017 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JUNE 30, 2017 RECOMMENDATION Receive and file revenue and expenditure report dated June 30, 2017. EXECUTIVE SUMMARY •Revenue and expenditure reports are submitted for review. •The report summarizes the City’s year-to-date (YTD) revenues and expenditures for June 2017 (Attachment 1). •Revenue and expenditure reports are also reviewed by the Finance Advisory Commission (FAC). FISCAL IMPACT – None. BACKGROUND/ANALYSIS Revenues Below is a summary of the column headers used on the Revenue Summary Report All Funds: Original Total Budget – represents the revenue budget the Council adopted in June 2016 for fiscal year 2016/17. Current Total Budget – includes original adopted revenue budget plus carryovers from the prior fiscal year, as well as Council approved budget amendments. The bulk of the carryovers are related to Capital Improvement Project (CIP) matters. Each year total CIP projects are budgeted; however, project length may span over multiple years. Therefore, unfinished projects from the prior year are carried over (along with associated remaining budgets). Period Activity – represents actual revenues received in the reporting month. Fiscal Activity – represents actual revenues received YTD. Variance Favorable/(Unfavorable) – represents the difference between YTD collections and the budgeted amount. Percent Used – represents the percentage of budgeted revenues collected YTD. CONSENT CALENDAR ITEM NO. 3 The revenue report includes revenues and transfers into funds from other funds (income items). Revenues are not received uniformly throughout the year, which results in peaks and valleys depending upon large payments that are received throughout the year. For example, large property tax payments are usually received in December and May. Similarly, Redevelopment Property Tax Trust Fund (RPTTF) payments are typically received in January and June. June Revenues $8 million in General Fund revenues were collected bringing the total YTD collections to 103 percent ($43,515,283). Total collections for all funds were $24.5 million, bringing total YTD collections to 122 percent ($118,727,568). The top five of General Fund revenues consisted of: •$ 2,172,606 – State Sales Tax •$ 1,897,652 – Motor Vehicle In Lieu •$ 1,462,650 – Measure G Sales Tax •$ 1,334,134 – Transient occupancy tax (hotels & short-term vacation rentals) •$ 819,757 – Property Tax- RPTTF The larger non-General Fund income consisted of: •$ 11,645,604 – County Government Revenue for Debt Service •$ 2,750,038 – Housing Authority Coral Mountain Loan Repayments •$ 571,519 – Capital improvement transfers in from multiple funds •$ 212,200 – Information Technology Fund internal service charges •$ 179,702 – Measure A County Sales Tax Expenditures Below is a summary of the column headers used on the Expenditure Summary Report All Funds: Original Total Budget – represents the expenditure budget adopted by Council in June 2016 for 2016/17. Current Total Budget – includes the original adopted expenditure budget plus any carryovers from the prior fiscal year, and any Council approved budget amendments. The bulk of the carryovers are related to CIP matters. Each year total CIP projects are budgeted; however, project length can span over multiple years. Therefore, unfinished projects from the prior year are carried over (along with associated revenue reimbursements). Period Activity – represents actual expenditures made in the reporting month. Fiscal Activity – represents actual expenditures made YTD. Variance Favorable/ (Unfavorable) – represents the difference between YTD expenditures and the budgeted amount (the amount yet to be expended). Percent Used – represents the percentage of budgeted expenditures spent to date. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are fairly consistent month to month. However, large debt service payments or CIP expenditures can cause swings. June Expenditures General Fund expenditures totaled $8.3 million bringing the total YTD expenditures to 83.58 percent ($41,297,181). Of this amount, $940,646 is related to personnel costs (salaries, benefits, etc.). In addition to personnel costs, the other larger General Fund expenditures were: •$ 4,033,376 – Sheriff contract (April, May, June) •$ 1,375,833 – Fire service contract •$ 362,996 – Sheriff annual facility fees and other •$ 155,853 – Transfers Out •$ 133,425 – Parks Equipment & Facility Fund internal service charge Total expenditures for all funds were $10.1 million bringing total expenditures to 67.29 percent ($74,922,265). The larger non-General Fund expenditures were: •$ 175,748 – Transfer CV Violent Crime Task Force Fund to another agency •$ 139,233 – Silver Rock maintenance •$ 123,913 – Capital improvement contributions to other agencies (City of Indio) for Jefferson Street Interchange •$122,464 – Capital improvement design costs •$116,639 – Transportation DIF Fund transfers out Summary All funds are generally on target or under budget with regard to expenditures. The timing imbalance of revenues receipts versus expenditures is funded from the City’s cash flow reserve. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director Attachment: 1. Revenue and Expenditure Report for June 2017 10/9/2017 2:22:16 PM Page 1 of 2 Revenue Summary Report All Funds City of La Quinta, CA June 2017 For Fiscal: 2016/17 Period Ending: 06/30/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 43,515,283.968,399,550.5240,400,600.00 42,183,600.00 1,331,683.96 103.16 % 201 - GAS TAX FUND 1,252,611.6569,390.211,299,100.00 1,264,500.00 -11,888.35 99.06 % 202 - LIBRARY & MUSEUM FUND 1,386,169.79-10,995.622,250,000.00 2,250,000.00 -863,830.21 61.61 % 210 - FEDERAL ASSISTANCE FUND 125,755.005,032.44125,800.00 125,800.00 -45.00 99.96 % 212 - SLESF (COPS) FUND 129,125.9124,655.28100,100.00 100,100.00 29,025.91 129.00 % 213 - JAG FUND 8,978.31-25.119,000.00 9,000.00 -21.69 99.76 % 215 - LIGHTING & LANDSCAPING FUND 1,449,603.2718,405.241,447,400.00 1,447,400.00 2,203.27 100.15 % 218 - CV VIOLENT CRIME TASK FORCE 18,170.36-76.3122,600.00 22,600.00 -4,429.64 80.40 % 219 - ASSET FORFEITURE 69.06-7.510.00 0.00 69.06 0.00 % 220 - QUIMBY FUND 128,218.04-19,144.6187,000.00 87,000.00 41,218.04 147.38 % 221 - AB 939 - CALRECYCLE FUND 53,142.4547,053.2652,500.00 52,500.00 642.45 101.22 % 223 - MEASURE A FUND 727,379.78177,499.34752,500.00 752,500.00 -25,120.22 96.66 % 224 - TUMF FUND 218.670.920.00 0.00 218.67 0.00 % 225 - INFRASTRUCTURE FUND 114.02-81.450.00 0.00 114.02 0.00 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)17,696.1911,064.190.00 0.00 17,696.19 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 53,768,083.1011,578,867.150.00 19,212,171.00 34,555,912.10 279.86 % 235 - SO COAST AIR QUALITY FUND 51,874.8925,766.7245,300.00 45,300.00 6,574.89 114.51 % 237 - SUCCESSOR AGCY PA 1 ADMIN 248,306.06123,288.010.00 -250,000.00 498,306.06 99.32 % 241 - HOUSING AUTHORITY 3,969,378.852,893,584.34889,600.00 889,600.00 3,079,778.85 446.20 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)13,977.174,343.520.00 0.00 13,977.17 0.00 % 250 - TRANSPORTATION DIF FUND 388,472.1528,432.10669,000.00 669,000.00 -280,527.85 58.07 % 251 - PARKS & REC DIF FUND 200,092.8117,801.36350,000.00 350,000.00 -149,907.19 57.17 % 252 - CIVIC CENTER DIF FUND 98,740.0110,172.04200,000.00 200,000.00 -101,259.99 49.37 % 253 - LIBRARY DEVELOPMENT DIF 34,056.003,440.0065,000.00 65,000.00 -30,944.00 52.39 % 254 - COMMUNITY CENTER DIF 13,324.58954.0235,600.00 35,600.00 -22,275.42 37.43 % 255 - STREET FACILITY DIF FUND 19,094.722,639.4435,000.00 35,000.00 -15,905.28 54.56 % 256 - PARK FACILITY DIF FUND 3,969.00400.837,000.00 7,000.00 -3,031.00 56.70 % 257 - FIRE PROTECTION DIF 45,398.854,684.6680,000.00 80,000.00 -34,601.15 56.75 % 270 - ART IN PUBLIC PLACES FUND 47,660.321,467.5298,500.00 98,500.00 -50,839.68 48.39 % 299 - INTEREST ALLOCATION FUND 0.00-134,899.050.00 0.00 0.00 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 678,105.490.00678,100.00 678,100.00 5.49 100.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 3,927,269.38667,024.477,327,300.00 20,006,554.38 -16,079,285.00 19.63 % 501 - FACILITY & FLEET REPLACEMENT 457,382.2380,707.27456,100.00 456,100.00 1,282.23 100.28 % 502 - INFORMATION TECHNOLOGY 857,908.22210,441.72849,800.00 844,800.00 13,108.22 101.55 % 503 - PARK EQUIP & FACILITY FND 548,158.95124,619.90534,700.00 534,700.00 13,458.95 102.52 % 504 - INSURANCE FUND 637,031.26157,054.27648,300.00 648,300.00 -11,268.74 98.26 % 601 - SILVERROCK RESORT 3,847,639.8343,169.514,034,800.00 4,034,800.00 -187,160.17 95.36 % 602 - SILVERROCK GOLF RESERVE 59,107.54-3,897.8361,400.00 61,400.00 -2,292.46 96.27 % Report Total:24,562,382.76 118,727,567.8763,612,100.00 96,996,925.38 21,730,642.49 122.40 % 10/9/2017 2:29:35 PM Page 1 of 2 Expense Summary Report All Funds City of La Quinta, CA June 2017 For Fiscal: 2016/17 Period Ending: 06/30/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 41,297,180.958,272,972.6641,240,600.00 49,411,154.96 8,113,974.01 83.58 % 201 - GAS TAX FUND 1,186,510.21165,826.651,299,200.00 1,339,700.00 153,189.79 88.57 % 202 - LIBRARY & MUSEUM FUND 537,473.3166,338.991,717,400.00 1,820,317.75 1,282,844.44 29.53 % 210 - FEDERAL ASSISTANCE FUND 112,840.70112,840.7020,200.00 20,200.00 -92,640.70 558.62 % 212 - SLESF (COPS) FUND 117,242.4922,221.230.00 0.00 -117,242.49 0.00 % 215 - LIGHTING & LANDSCAPING FUND 1,244,237.86218,534.171,467,400.00 1,468,700.00 224,462.14 84.72 % 218 - CV VIOLENT CRIME TASK FORCE 185,616.04176,135.4146,700.00 46,700.00 -138,916.04 397.46 % 219 - ASSET FORFEITURE 9,252.349,252.340.00 0.00 -9,252.34 0.00 % 220 - QUIMBY FUND 557,337.5358,549.87437,300.00 4,395,288.74 3,837,951.21 12.68 % 221 - AB 939 - CALRECYCLE FUND 15,056.53983.7220,000.00 20,000.00 4,943.47 75.28 % 223 - MEASURE A FUND 664,140.9381,104.85651,000.00 1,755,784.32 1,091,643.39 37.83 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)11,082.000.000.00 0.00 -11,082.00 0.00 % 227 - State Homeland Security Programs (SHSP)3,033.493,033.490.00 0.00 -3,033.49 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 16,162,475.95-1,079,604.860.00 18,077,120.00 1,914,644.05 89.41 % 235 - SO COAST AIR QUALITY FUND 38,287.8319,681.1630,000.00 30,000.00 -8,287.83 127.63 % 237 - SUCCESSOR AGCY PA 1 ADMIN 354,740.0023,913.750.00 292,000.00 -62,740.00 121.49 % 241 - HOUSING AUTHORITY 1,032,382.09159,314.99960,200.00 975,400.00 -56,982.09 105.84 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)250.000.000.00 0.00 -250.00 0.00 % 250 - TRANSPORTATION DIF FUND 203,047.04116,638.94675,900.00 3,489,738.61 3,286,691.57 5.82 % 252 - CIVIC CENTER DIF FUND 55,993.9613,292.700.00 0.00 -55,993.96 0.00 % 253 - LIBRARY DEVELOPMENT DIF 12,890.493,044.560.00 0.00 -12,890.49 0.00 % 255 - STREET FACILITY DIF FUND 15,190.783,699.240.00 0.00 -15,190.78 0.00 % 256 - PARK FACILITY DIF FUND 3,969.171,001.060.00 0.00 -3,969.17 0.00 % 257 - FIRE PROTECTION DIF 4,580.571,059.250.00 0.00 -4,580.57 0.00 % 270 - ART IN PUBLIC PLACES FUND 64,311.62183.28129,000.00 329,000.00 264,688.38 19.55 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 678,200.504,157.25678,100.00 678,100.00 -100.50 100.01 % 401 - CAPITAL IMPROVEMENT PROGRAMS 3,810,926.07375,868.60190,400.00 20,196,783.38 16,385,857.31 18.87 % 501 - FACILITY & FLEET REPLACEMENT 423,362.04201,628.74498,900.00 559,176.00 135,813.96 75.71 % 502 - INFORMATION TECHNOLOGY 847,674.01159,272.40848,800.00 848,800.00 1,125.99 99.87 % 503 - PARK EQUIP & FACILITY FND 646,007.92538,673.65603,700.00 680,200.00 34,192.08 94.97 % 504 - INSURANCE FUND 604,244.56-4,085.62649,000.00 649,700.00 45,455.44 93.00 % 601 - SILVERROCK RESORT 4,009,944.22521,489.014,262,200.00 4,262,500.00 252,555.78 94.07 % 602 - SILVERROCK GOLF RESERVE 12,782.25-159,778.170.00 0.00 -12,782.25 0.00 % Report Total:10,087,244.01 74,922,265.4556,426,000.00 111,346,363.76 36,424,098.31 67.29 % City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 15, 2017 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JULY 31 AND AUGUST 31, 2017 RECOMMENDATION Receive and file revenue and expenditure report dated July 31 and August 31, 2017. EXECUTIVE SUMMARY •Revenue and expenditure reports are submitted for review. •The report summarizes the City’s year-to-date (YTD) revenues and expenditures for July and August 2017 (Attachment 1). •Revenue and expenditure reports are also reviewed by the Finance Advisory Commission (FAC). FISCAL IMPACT – None. BACKGROUND/ANALYSIS Revenues Below is a summary of the column headers used on the Revenue Summary Report All Funds: Original Total Budget – represents the revenue budget the Council adopted in June 2017 for fiscal year 2017/18. Current Total Budget – includes original adopted revenue budget plus carryovers from the prior fiscal year, as well as Council approved budget amendments. The bulk of the carryovers are related to Capital Improvement Project (CIP) matters. Each year total CIP projects are budgeted; however, project length may span over multiple years. Therefore, unfinished projects from the prior year are carried over (along with associated remaining budgets). The 2016/17 CIP carryovers will be processed in October 2017, after the year-end audit is completed. Period Activity – represents actual revenues received in the reporting month. Fiscal Activity – represents actual revenues received YTD. Variance Favorable/(Unfavorable) – represents the difference between YTD collections and the budgeted amount. Percent Used – represents the percentage of budgeted revenues collected YTD. CONSENT CALENDAR ITEM NO. 4 The revenue report includes revenues and transfers into funds from other funds (income items). Revenues are not received uniformly throughout the year, which results in peaks and valleys depending upon large payments that are received throughout the year. For example, large property tax payments are usually received in December and May. Similarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. July Revenues $126,672 in General Fund revenues were collected in July, or .27 percent of the YTD budget. Total collections for all funds were $452,522, or .62 percent of the YTD budget. The top General Fund revenues consisted of: • $ 46,862 – Building Plan Check Fees • $ 20,355 – Business Licenses • $ 15,512 – Building Permits • $ 14,775 – Miscellaneous Permits • $ 11,610 – Wellness Center Memberships The larger non-General Fund income consisted of: • $ 76,973 – Tenant rent and federal assistance for the Housing Authority • $ 48,314 – Transportation developer impact fees (DIF) • $ 34,816 – Parks & Recreation developer impact fees (DIF) • $ 29,746 – SilverRock • $ 16,014 – Civic Center developer impact fees (DIF) August Revenues $622,459 in General Fund revenues were collected in July, bringing the total YTD revenue to 1.55 percent ($752,131) of the budget. Total collections for all funds were $984,940, bringing the total YTD revenue to 1.96 percent ($1,437,462) of the budget. The top General Fund revenues consisted of: • $273,356 – Transient occupancy (hotel) tax • $ 60,244 – Building Plan Check Fees • $ 43,004 – Document Transfer Tax • $ 28,211 – Franchise Tax-Burrtec • $ 26,403 – Business Licenses The larger non-General Fund income consisted of: • $ 150,163 – Gas Tax • $ 93,800 – Housing Authority land purchase • $ 30,368 – SilverRock • $ 19,894 – Transportation developer impact fees (DIF) • $ 14,336 – Parks & Recreation developer impact fees (DIF) Expenditures Below is a summary of the column headers used on the Expenditure Summary Report All Funds: Original Total Budget – represents the expenditure budget adopted by Council in June 2017 for 2017/18 Current Total Budget – includes the original adopted expenditure budget plus any carryovers from the prior fiscal year, and any Council approved budget amendments. The bulk of the carryovers are related to CIP matters. Each year total CIP projects are budgeted; however, project length can span over multiple years. Therefore, unfinished projects from the prior year are carried over (along with associated revenue reimbursements). The 2016/17 CIP carryovers will be processed in October 2017, after the year-end audit is completed. Period Activity – represents actual expenditures made in the reporting month. Fiscal Activity – represents actual expenditures made YTD. Variance Favorable/ (Unfavorable) – represents the difference between YTD expenditures and the budgeted amount (the amount yet to be expended). Percent Used – represents the percentage of budgeted expenditures spent to date. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are fairly consistent month to month. However, large debt service payments or CIP expenditures can cause swings. July Expenditures General Fund expenditures totaled $1.1 million, or 2.24 percent of the YTD budget. Of this amount, $890,183 is related to personnel costs (salaries, benefits, etc.). In addition to personnel costs, the other larger General Fund expenditures were: • $ 66,388 – Greater Palm Springs Convention and Visitors Bureau • $ 60,230 – Coachella Valley Association of Governments and East Valley Coalition memberships • $ 11,560 – Legislative services contract • $ 11,011 – Marketing and tourism promotions • $ 4,500 – Human resources membership dues Total expenditures for all funds were $2.5 million, or 2.94 percent of the YTD budget. The larger non-General Fund expenditures were: • $ 448,537 – Liability insurance premium • $ 220,848 – Workers Compensation insurance premium • $ 157,700 – SilverRock maintenance • $ 62,444 – Software license renewals • $ 44,864 – SilverRock rental payment August Expenditures General Fund expenditures totaled $810,787, bringing the total YTD expenditures to 3.90 percent ($1,908,784). Of this amount, $589,314 is related to personnel costs (salaries, benefits, etc.). In addition to personnel costs, the other larger General Fund expenditures were: •$ 63,614 – Park landscape maintenance •$ 17,767 – Marketing and tourism promotions •$ 16,739 – Utilities-electricity for public buildings •$ 12,500 – Jacqueline Cochran Regional Airport •$ 10,000 – Coachella Valley Economic Partnership membership Total expenditures for all funds were $1.9 million, bringing the total YTD expenditures to 5.19 percent ($4,377,946). The larger non-General Fund expenditures were: •$ 223,760 – Capital improvement plan construction costs •$ 126,009 – Capital improvement plan contributions to other agencies CVAG interchange agreement •$ 114,748 – SilverRock maintenance •$ 96,393 – Software license renewals •$ 93,800 – Capital improvement plan land acquisition Summary All funds are generally on target or under budget with regard to expenditures. The timing imbalance of revenue receipts versus expenditures is funded from the City’s cash flow reserve. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director Attachment: 1. Revenue and Expenditure Report for July and August 2017 10/9/2017 3:59:45 PM Page 1 of 4 Revenue Summary Report All Funds City of La Quinta, CA July 2017 For Fiscal: 2017/18 Period Ending: 07/31/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 129,671.69129,671.6948,551,600.00 48,551,600.00 -48,421,928.31 0.27 % 201 - GAS TAX FUND -531.15-531.151,415,400.00 1,415,400.00 -1,415,931.15 0.04 % 202 - LIBRARY & MUSEUM FUND -6,705.04-6,705.042,254,000.00 2,254,000.00 -2,260,705.04 0.30 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 125,800.00 -125,800.00 0.00 % 212 - SLESF (COPS) FUND -0.59-0.59100,100.00 100,100.00 -100,100.59 0.00 % 215 - LIGHTING & LANDSCAPING FUND -476.70-476.701,448,900.00 1,448,900.00 -1,449,376.70 0.03 % 218 - CV VIOLENT CRIME TASK FORCE -261.46-261.460.00 0.00 -261.46 0.00 % 219 - ASSET FORFEITURE -13.50-13.500.00 0.00 -13.50 0.00 % 220 - QUIMBY FUND -7,372.80-7,372.8055,000.00 55,000.00 -62,372.80 13.41 % 221 - AB 939 - CALRECYCLE FUND -1,080.40-1,080.4062,500.00 62,500.00 -63,580.40 1.73 % 223 - MEASURE A FUND -1,080.70-1,080.70724,500.00 724,500.00 -725,580.70 0.15 % 224 - TUMF FUND -55.88-55.880.00 0.00 -55.88 0.00 % 225 - INFRASTRUCTURE FUND -34.86-34.860.00 0.00 -34.86 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 1.001.000.00 0.00 1.00 0.00 % 235 - SO COAST AIR QUALITY FUND -239.46-239.4650,300.00 50,300.00 -50,539.46 0.48 % 241 - HOUSING AUTHORITY 61,365.3861,365.38919,000.00 919,000.00 -857,634.62 6.68 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)4,204.124,204.120.00 0.00 4,204.12 0.00 % 250 - TRANSPORTATION DIF FUND 42,852.8142,852.81369,000.00 369,000.00 -326,147.19 11.61 % 251 - PARKS & REC DIF FUND 34,816.0034,816.00200,000.00 200,000.00 -165,184.00 17.41 % 252 - CIVIC CENTER DIF FUND 16,014.0016,014.00100,000.00 100,000.00 -83,986.00 16.01 % 253 - LIBRARY DEVELOPMENT DIF 5,848.005,848.0030,000.00 30,000.00 -24,152.00 19.49 % 254 - COMMUNITY CENTER DIF 2,027.012,027.0115,400.00 15,400.00 -13,372.99 13.16 % 255 - STREET FACILITY DIF FUND 1,972.001,972.0015,000.00 15,000.00 -13,028.00 13.15 % 256 - PARK FACILITY DIF FUND 679.43679.434,000.00 4,000.00 -3,320.57 16.99 % 257 - FIRE PROTECTION DIF 7,361.007,361.0040,000.00 40,000.00 -32,639.00 18.40 % 270 - ART IN PUBLIC PLACES FUND 3,321.243,321.2453,500.00 53,500.00 -50,178.76 6.21 % 299 - INTEREST ALLOCATION FUND 139,555.75139,555.750.00 0.00 139,555.75 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 0.000.00671,400.00 671,400.00 -671,400.00 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 0.000.008,423,900.00 9,173,900.00 -9,173,900.00 0.00 % 501 - FACILITY & FLEET REPLACEMENT -4,260.33-4,260.33531,000.00 531,000.00 -535,260.33 0.80 % 502 - INFORMATION TECHNOLOGY 38.4038.40714,000.00 714,000.00 -713,961.60 0.01 % 503 - PARK EQUIP & FACILITY FND -4,382.86-4,382.86680,000.00 680,000.00 -684,382.86 0.64 % 504 - INSURANCE FUND -5.97-5.971,001,000.00 1,001,000.00 -1,001,005.97 0.00 % 601 - SILVERROCK RESORT 29,746.2929,746.294,004,200.00 4,004,200.00 -3,974,453.71 0.74 % 602 - SILVERROCK GOLF RESERVE -450.62-450.6261,300.00 61,300.00 -61,750.62 0.74 % Report Total:452,521.80 452,521.8072,620,800.00 73,370,800.00 -72,918,278.20 0.62 % ATTACHMENT 1 10/9/2017 5:00:45 PM Page 2 of 4 Expense Summary Report All Funds City of La Quinta, CA July 2017 For Fiscal: 2017/18 Period Ending: 07/31/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 1,097,997.131,097,997.1348,081,400.00 48,951,400.00 47,853,402.87 2.24 % 201 - GAS TAX FUND 115,950.60115,950.601,435,000.00 1,435,000.00 1,319,049.40 8.08 % 202 - LIBRARY & MUSEUM FUND 4,340.824,340.821,947,500.00 1,947,500.00 1,943,159.18 0.22 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 125,800.00 125,800.00 0.00 % 212 - SLESF (COPS) FUND 0.000.00100,000.00 100,000.00 100,000.00 0.00 % 215 - LIGHTING & LANDSCAPING FUND 59,616.7059,616.701,519,300.00 1,519,300.00 1,459,683.30 3.92 % 221 - AB 939 - CALRECYCLE FUND 0.000.0020,000.00 20,000.00 20,000.00 0.00 % 223 - MEASURE A FUND 0.000.00787,000.00 787,000.00 787,000.00 0.00 % 225 - INFRASTRUCTURE FUND 0.000.0022,600.00 22,600.00 22,600.00 0.00 % 235 - SO COAST AIR QUALITY FUND 0.000.0032,000.00 32,000.00 32,000.00 0.00 % 241 - HOUSING AUTHORITY 51,571.7651,571.761,192,100.00 1,192,100.00 1,140,528.24 4.33 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)0.000.009,400,000.00 9,400,000.00 9,400,000.00 0.00 % 250 - TRANSPORTATION DIF FUND 0.000.001,005,100.00 1,005,100.00 1,005,100.00 0.00 % 254 - COMMUNITY CENTER DIF 0.000.00101,600.00 101,600.00 101,600.00 0.00 % 270 - ART IN PUBLIC PLACES FUND 0.000.00122,000.00 122,000.00 122,000.00 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 0.000.00671,400.00 671,400.00 671,400.00 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 28,633.6428,633.648,614,400.00 9,364,400.00 9,335,766.36 0.31 % 501 - FACILITY & FLEET REPLACEMENT 12,660.6512,660.651,069,300.00 1,069,300.00 1,056,639.35 1.18 % 502 - INFORMATION TECHNOLOGY 101,387.99101,387.99914,000.00 914,000.00 812,612.01 11.09 % 503 - PARK EQUIP & FACILITY FND 0.000.00670,000.00 670,000.00 670,000.00 0.00 % 504 - INSURANCE FUND 684,576.80684,576.80969,200.00 969,200.00 284,623.20 70.63 % 601 - SILVERROCK RESORT 328,106.03328,106.034,003,400.00 4,003,400.00 3,675,293.97 8.20 % Report Total:2,484,842.12 2,484,842.1282,803,100.00 84,423,100.00 81,938,257.88 2.94 % 10/9/2017 7:12:22 PM Page 3 of 4 Revenue Summary Report All Funds City of La Quinta, CA August 2017 For Fiscal: 2017/18 Period Ending: 08/31/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 752,130.99622,459.3048,551,600.00 48,551,600.00 -47,799,469.01 1.55 % 201 - GAS TAX FUND 149,631.38150,162.531,415,400.00 1,415,400.00 -1,265,768.62 10.57 % 202 - LIBRARY & MUSEUM FUND -6,705.040.002,254,000.00 2,254,000.00 -2,260,705.04 0.30 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 125,800.00 -125,800.00 0.00 % 212 - SLESF (COPS) FUND 8,332.748,333.33100,100.00 100,100.00 -91,767.26 8.32 % 215 - LIGHTING & LANDSCAPING FUND -476.700.001,448,900.00 1,448,900.00 -1,449,376.70 0.03 % 218 - CV VIOLENT CRIME TASK FORCE -261.460.000.00 0.00 -261.46 0.00 % 219 - ASSET FORFEITURE -13.500.000.00 0.00 -13.50 0.00 % 220 - QUIMBY FUND -7,372.800.0055,000.00 55,000.00 -62,372.80 13.41 % 221 - AB 939 - CALRECYCLE FUND 1,429.192,509.5962,500.00 62,500.00 -61,070.81 2.29 % 223 - MEASURE A FUND -1,080.700.00724,500.00 724,500.00 -725,580.70 0.15 % 224 - TUMF FUND -55.880.000.00 0.00 -55.88 0.00 % 225 - INFRASTRUCTURE FUND -34.860.000.00 0.00 -34.86 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 2.311.310.00 0.00 2.31 0.00 % 235 - SO COAST AIR QUALITY FUND -239.460.0050,300.00 50,300.00 -50,539.46 0.48 % 241 - HOUSING AUTHORITY 155,165.3893,800.00919,000.00 919,000.00 -763,834.62 16.88 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)8,549.024,344.900.00 0.00 8,549.02 0.00 % 250 - TRANSPORTATION DIF FUND 62,746.8119,894.00369,000.00 369,000.00 -306,253.19 17.00 % 251 - PARKS & REC DIF FUND 49,152.0014,336.00200,000.00 200,000.00 -150,848.00 24.58 % 252 - CIVIC CENTER DIF FUND 22,608.006,594.00100,000.00 100,000.00 -77,392.00 22.61 % 253 - LIBRARY DEVELOPMENT DIF 8,256.002,408.0030,000.00 30,000.00 -21,744.00 27.52 % 254 - COMMUNITY CENTER DIF 2,930.01903.0015,400.00 15,400.00 -12,469.99 19.03 % 255 - STREET FACILITY DIF FUND 2,784.00812.0015,000.00 15,000.00 -12,216.00 18.56 % 256 - PARK FACILITY DIF FUND 959.43280.004,000.00 4,000.00 -3,040.57 23.99 % 257 - FIRE PROTECTION DIF 10,392.003,031.0040,000.00 40,000.00 -29,608.00 25.98 % 270 - ART IN PUBLIC PLACES FUND 6,698.123,376.8853,500.00 53,500.00 -46,801.88 12.52 % 299 - INTEREST ALLOCATION FUND 159,396.1019,840.350.00 0.00 159,396.10 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 0.000.00671,400.00 671,400.00 -671,400.00 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 0.000.008,423,900.00 9,173,900.00 -9,173,900.00 0.00 % 501 - FACILITY & FLEET REPLACEMENT -4,260.330.00531,000.00 531,000.00 -535,260.33 0.80 % 502 - INFORMATION TECHNOLOGY 1,524.401,486.00714,000.00 714,000.00 -712,475.60 0.21 % 503 - PARK EQUIP & FACILITY FND -4,382.860.00680,000.00 680,000.00 -684,382.86 0.64 % 504 - INSURANCE FUND -5.970.001,001,000.00 1,001,000.00 -1,001,005.97 0.00 % 601 - SILVERROCK RESORT 60,113.8830,367.594,004,200.00 4,004,200.00 -3,944,086.12 1.50 % 602 - SILVERROCK GOLF RESERVE -450.620.0061,300.00 61,300.00 -61,750.62 0.74 % Report Total:984,939.78 1,437,461.5872,620,800.00 73,370,800.00 -71,933,338.42 1.96 % 10/9/2017 7:19:47 PM Page 4 of 4 Expense Summary Report All Funds City of La Quinta, CA August 2017 For Fiscal: 2017/18 Period Ending: 08/31/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 1,908,783.72810,786.5948,081,400.00 48,951,400.00 47,042,616.28 3.90 % 201 - GAS TAX FUND 181,280.2165,329.611,435,000.00 1,435,000.00 1,253,719.79 12.63 % 202 - LIBRARY & MUSEUM FUND 29,328.6824,987.861,947,500.00 1,947,500.00 1,918,171.32 1.51 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 125,800.00 125,800.00 0.00 % 212 - SLESF (COPS) FUND 0.000.00100,000.00 100,000.00 100,000.00 0.00 % 215 - LIGHTING & LANDSCAPING FUND 102,477.2642,860.561,519,300.00 1,519,300.00 1,416,822.74 6.75 % 221 - AB 939 - CALRECYCLE FUND 728.75728.7520,000.00 20,000.00 19,271.25 3.64 % 223 - MEASURE A FUND 0.000.00787,000.00 787,000.00 787,000.00 0.00 % 225 - INFRASTRUCTURE FUND 0.000.0022,600.00 22,600.00 22,600.00 0.00 % 235 - SO COAST AIR QUALITY FUND 0.000.0032,000.00 32,000.00 32,000.00 0.00 % 237 - SUCCESSOR AGCY PA 1 ADMIN 1,500.001,500.000.00 0.00 -1,500.00 0.00 % 241 - HOUSING AUTHORITY 54,363.172,791.411,192,100.00 1,192,100.00 1,137,736.83 4.56 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)0.000.009,400,000.00 9,400,000.00 9,400,000.00 0.00 % 250 - TRANSPORTATION DIF FUND 0.000.001,005,100.00 1,005,100.00 1,005,100.00 0.00 % 254 - COMMUNITY CENTER DIF 0.000.00101,600.00 101,600.00 101,600.00 0.00 % 270 - ART IN PUBLIC PLACES FUND 2,995.262,995.26122,000.00 122,000.00 119,004.74 2.46 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 0.000.00671,400.00 671,400.00 671,400.00 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 485,866.55457,232.918,614,400.00 9,364,400.00 8,878,533.45 5.19 % 501 - FACILITY & FLEET REPLACEMENT 32,787.9920,127.341,069,300.00 1,069,300.00 1,036,512.01 3.07 % 502 - INFORMATION TECHNOLOGY 246,433.96145,045.97914,000.00 914,000.00 667,566.04 26.96 % 503 - PARK EQUIP & FACILITY FND 1,000.001,000.00670,000.00 670,000.00 669,000.00 0.15 % 504 - INSURANCE FUND 778,722.5994,145.79969,200.00 969,200.00 190,477.41 80.35 % 601 - SILVERROCK RESORT 551,677.83223,571.804,003,400.00 4,003,400.00 3,451,722.17 13.78 % Report Total:1,893,103.85 4,377,945.9782,803,100.00 84,423,100.00 80,045,154.03 5.19 % City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 15, 2017 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED SEPTEMBER 30, 2017 RECOMMENDATION Receive and file revenue and expenditure report dated September 30, 2017. EXECUTIVE SUMMARY • Revenue and expenditure reports are submitted for review. • The report summarizes the City’s year-to-date (YTD) revenues and expenditures and period activity as of September 30, 2017 (Attachment 1). • Revenue and expenditure reports are also reviewed by the Finance Advisory Commission (FAC). FISCAL IMPACT – None. BACKGROUND/ANALYSIS Revenues Below is a summary of the column headers used on the Revenue Summary Report All Funds: Original Total Budget – represents the revenue budget the Council adopted in June 2017 for fiscal year 2017/18. Current Total Budget – includes original adopted revenue budget plus carryovers from the prior fiscal year, as well as Council approved budget amendments. The bulk of the carryovers are related to Capital Improvement Project (CIP) matters. Each year total CIP projects are budgeted; however, project length may span over multiple years. Therefore, unfinished projects from the prior year are carried over (along with associated remaining budgets). The 2016/17 CIP carryovers will be processed in October 2017, after the year-end audit is completed. Period Activity – represents actual revenues received in the reporting month. Fiscal Activity – represents actual revenues received YTD. Variance Favorable/(Unfavorable) - the difference between YTD collections and the budgeted amount. Percent Used – represents the percentage of budgeted revenues collected YTD. CONSENT CALENDAR ITEM NO. 5 The revenue report includes revenues and transfers into funds from other funds (income items). Revenues are not received uniformly throughout the year, which results in peaks and valleys depending upon large payments that are received throughout the year. For example, large property tax payments are usually received in December and May. Similarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. September Revenues $2,580,481 in General Fund revenues were collected in September, bringing the total YTD revenue to 6.86 percent ($3,332,612) of the budget. Total collections for all funds were $2,827,195, bringing the total YTD revenue to 5.81 percent ($4,264,656) of the budget. The top General Fund revenues consisted of: • $966,477 – Measure G Sales/Transaction Tax • $709,405 – Sales Tax • $200,372 – Transient Occupancy Tax • $262,163 – Property Tax • $102,937 – Fire Service Credit The larger non-General Fund income consisted of: • $ 64,756 – Measure A County Sales Tax • $ 41,557 – SilverRock • $ 38,586 – Allocated Interest • $ 24,601 – Rent Income • $ 22,736 – Transportation Developer Impact Fees (DIF) Expenditures Below is a summary of the column headers used on the Expenditure Summary Report All Funds: Original Total Budget – represents the expenditure budget adopted by Council in June 2017 for 2017/18 Current Total Budget – includes the original adopted expenditure budget plus any carryovers from the prior fiscal year, and any Council approved budget amendments. The bulk of the carryovers are related to CIP matters. Each year total CIP projects are budgeted; however, project length can span over multiple years. Therefore, unfinished projects from the prior year are carried over (along with associated revenue reimbursements). The 2016/17 CIP carryovers will be processed in October 2017, after the year-end audit is completed. Period Activity – represents actual expenditures made in the reporting month. Fiscal Activity – represents actual expenditures made YTD. Variance Favorable/ (Unfavorable) – represents the difference between YTD expenditures and the budgeted amount (the amount yet to be expended). Percent Used – represents the percentage of budgeted expenditures spent to date. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are fairly consistent month to month. However, large debt service payments or CIP expenditures can cause swings. September Expenditures General Fund expenditures totaled $1,015,081, bringing the total YTD expenditures to 5.97 percent ($2,923,864). Of this amount, $544,536 is related to personnel costs (salaries, benefits, etc.). In addition to personnel costs, the other larger General Fund expenditures were: •$ 62,361 – Marketing and Tourism Promotions •$ 45,384 – Police Contract Services •$ 38,235 – Contract Traffic Engineer •$ 37,021 – Professional Inspection Services •$ 31,939 – Parks Landscape Maintenance Total expenditures for all funds were $7,263,601 million, bringing the total YTD expenditures to 13.8 percent ($11,654,597) of the budget. The larger non-General Fund expenditures were: •$ 4,717,898 – Successor Agency Bond Interest •$ 493,483 – Capital Improvement Plan - Construction •$ 138,518 – SilverRock Maintenance •$ 85,238 – Capital Improvement Plan – Design •$ 61,996 – Capital Improvement Plan – Inspection and Surveying Services Summary All funds are generally on target or under budget with regard to expenditures. The timing imbalance of revenue receipts versus expenditures is funded from the City’s cash flow reserve. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director Attachment: 1. Revenue and Expenditure Report for September 2017 10/24/2017 2:38:44 PM Page 1 of 2 Revenue Summary Report All Funds City of La Quinta, CA September 2017 For Fiscal: 2017/18 Period Ending: 09/30/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 3,332,612.192,580,481.2048,551,600.00 48,551,600.00 -45,218,987.81 6.86 % 201 - GAS TAX FUND 149,631.380.001,415,400.00 1,415,400.00 -1,265,768.62 10.57 % 202 - LIBRARY & MUSEUM FUND -6,705.040.002,254,000.00 2,254,000.00 -2,260,705.04 0.30 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 125,800.00 -125,800.00 0.00 % 212 - SLESF (COPS) FUND 16,666.118,333.37100,100.00 100,100.00 -83,433.89 16.65 % 215 - LIGHTING & LANDSCAPING FUND -476.700.001,448,900.00 1,448,900.00 -1,449,376.70 0.03 % 218 - CV VIOLENT CRIME TASK FORCE -261.460.000.00 0.00 -261.46 0.00 % 219 - ASSET FORFEITURE -13.500.000.00 0.00 -13.50 0.00 % 220 - QUIMBY FUND -7,372.800.0055,000.00 55,000.00 -62,372.80 13.41 % 221 - AB 939 - CALRECYCLE FUND 4,070.872,641.6862,500.00 62,500.00 -58,429.13 6.51 % 223 - MEASURE A FUND 63,675.1864,755.88724,500.00 724,500.00 -660,824.82 8.79 % 224 - TUMF FUND -55.880.000.00 0.00 -55.88 0.00 % 225 - INFRASTRUCTURE FUND -34.860.000.00 0.00 -34.86 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 3,329.373,327.060.00 0.00 3,329.37 0.00 % 235 - SO COAST AIR QUALITY FUND -239.460.0050,300.00 50,300.00 -50,539.46 0.48 % 241 - HOUSING AUTHORITY 179,927.3524,761.97919,000.00 919,000.00 -739,072.65 19.58 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)12,894.734,345.710.00 0.00 12,894.73 0.00 % 250 - TRANSPORTATION DIF FUND 85,482.8122,736.00369,000.00 369,000.00 -283,517.19 23.17 % 251 - PARKS & REC DIF FUND 65,536.0016,384.00200,000.00 200,000.00 -134,464.00 32.77 % 252 - CIVIC CENTER DIF FUND 30,144.007,536.00100,000.00 100,000.00 -69,856.00 30.14 % 253 - LIBRARY DEVELOPMENT DIF 11,008.002,752.0030,000.00 30,000.00 -18,992.00 36.69 % 254 - COMMUNITY CENTER DIF 3,962.011,032.0015,400.00 15,400.00 -11,437.99 25.73 % 255 - STREET FACILITY DIF FUND 3,712.00928.0015,000.00 15,000.00 -11,288.00 24.75 % 256 - PARK FACILITY DIF FUND 1,279.43320.004,000.00 4,000.00 -2,720.57 31.99 % 257 - FIRE PROTECTION DIF 13,856.003,464.0040,000.00 40,000.00 -26,144.00 34.64 % 270 - ART IN PUBLIC PLACES FUND 9,013.782,315.6653,500.00 53,500.00 -44,486.22 16.85 % 299 - INTEREST ALLOCATION FUND 197,981.9538,585.850.00 0.00 197,981.95 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 0.000.00671,400.00 671,400.00 -671,400.00 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 0.000.008,423,900.00 9,173,900.00 -9,173,900.00 0.00 % 501 - FACILITY & FLEET REPLACEMENT -4,260.330.00531,000.00 531,000.00 -535,260.33 0.80 % 502 - INFORMATION TECHNOLOGY 2,461.40937.00714,000.00 714,000.00 -711,538.60 0.34 % 503 - PARK EQUIP & FACILITY FND -4,382.860.00680,000.00 680,000.00 -684,382.86 0.64 % 504 - INSURANCE FUND -5.970.001,001,000.00 1,001,000.00 -1,001,005.97 0.00 % 601 - SILVERROCK RESORT 101,671.0141,557.134,004,200.00 4,004,200.00 -3,902,528.99 2.54 % 602 - SILVERROCK GOLF RESERVE -450.620.0061,300.00 61,300.00 -61,750.62 0.74 % Report Total:2,827,194.51 4,264,656.0972,620,800.00 73,370,800.00 -69,106,143.91 5.81 % ATTACHMENT 1 10/24/2017 2:36:24 PM Page 1 of 2 Expense Summary Report All Funds City of La Quinta, CA September 2017 For Fiscal: 2017/18 Period Ending: 09/30/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 2,923,864.331,015,080.6148,081,400.00 48,951,400.00 46,027,535.67 5.97 % 201 - GAS TAX FUND 243,895.5162,615.301,435,000.00 1,435,000.00 1,191,104.49 17.00 % 202 - LIBRARY & MUSEUM FUND 59,166.4929,837.811,947,500.00 1,947,500.00 1,888,333.51 3.04 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 125,800.00 125,800.00 0.00 % 212 - SLESF (COPS) FUND 0.000.00100,000.00 100,000.00 100,000.00 0.00 % 215 - LIGHTING & LANDSCAPING FUND 239,850.81137,373.551,519,300.00 1,519,300.00 1,279,449.19 15.79 % 221 - AB 939 - CALRECYCLE FUND 728.750.0020,000.00 20,000.00 19,271.25 3.64 % 223 - MEASURE A FUND 0.000.00787,000.00 787,000.00 787,000.00 0.00 % 225 - INFRASTRUCTURE FUND 0.000.0022,600.00 22,600.00 22,600.00 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 4,717,897.664,717,897.660.00 0.00 -4,717,897.66 0.00 % 235 - SO COAST AIR QUALITY FUND 0.000.0032,000.00 32,000.00 32,000.00 0.00 % 237 - SUCCESSOR AGCY PA 1 ADMIN 1,500.000.000.00 0.00 -1,500.00 0.00 % 241 - HOUSING AUTHORITY 77,010.5822,647.411,192,100.00 1,192,100.00 1,115,089.42 6.46 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)0.000.009,400,000.00 9,400,000.00 9,400,000.00 0.00 % 250 - TRANSPORTATION DIF FUND 0.000.001,005,100.00 1,005,100.00 1,005,100.00 0.00 % 254 - COMMUNITY CENTER DIF 0.000.00101,600.00 101,600.00 101,600.00 0.00 % 270 - ART IN PUBLIC PLACES FUND 39,995.2637,000.00122,000.00 122,000.00 82,004.74 32.78 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 0.000.00671,400.00 671,400.00 671,400.00 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 1,238,936.58753,070.038,614,400.00 9,364,400.00 8,125,463.42 13.23 % 501 - FACILITY & FLEET REPLACEMENT 99,820.9167,032.921,069,300.00 1,069,300.00 969,479.09 9.34 % 502 - INFORMATION TECHNOLOGY 325,159.9965,676.03914,000.00 914,000.00 588,840.01 35.58 % 503 - PARK EQUIP & FACILITY FND 36,521.6935,521.69670,000.00 670,000.00 633,478.31 5.45 % 504 - INSURANCE FUND 785,031.596,309.00969,200.00 969,200.00 184,168.41 81.00 % 601 - SILVERROCK RESORT 865,217.04313,539.214,003,400.00 4,003,400.00 3,138,182.96 21.61 % Report Total:7,263,601.22 11,654,597.1982,803,100.00 84,423,100.00 72,768,502.81 13.80 % City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 15, 2017 STAFF REPORT AGENDA TITLE: APPOINT THE CHAIRMAN AND TWO COMMISSIONERS TO FORMULATE THE ANNUAL MEASURE G SALES TAX OVERSIGHT COMPLIANCE REPORT RECOMMENDATION Appoint the Chairman and two Commissioners to formulate the annual Measure G sales tax oversight compliance report. EXECUTIVE SUMMARY •Measure G, the one percent (1%) Transactions and Use Tax measure was approved by voters at the November 8, 2016 General Election and subsequently adopted by resolution on December 20, 2016 with an effective date of April 1, 2017. Additional funds are subject to citizen oversight. •Staff recommends the Financial Advisory Commission (FAC) appoint the Chairman and two Commissioners to serve on the sub-committee to verify revenue and expenses associated with Measure G funds. •The sub-committee shall prepare a report and present their findings to City Council in January. BACKGROUND/ANALYSIS The Measure was approved on November 8, 2016 and adopted by resolution on December 20, 2016 with an effective date of April 1, 2017. Additional funds generated by the Measure are subject to citizen oversight. The verification of revenue and expenses will include the following: 1.A review of payments received to date 2.A review of approved uses of funds for capital projects, reserves, and contract services 3.A review of proposed uses for future funds 4.A review of funds available for appropriation Starting in June 2016, Measure G funds have been received on a monthly basis. City staff recommends appointing the Chairman and two Commissioners on the sub-committee. The sub-committee shall present its report to the City Council during a community workshop in January. This annual budget workshop is intended to start the fiscal year 2018/19 budget cycle and identity priorities based on community input. As a reference, attached is a transactions and use tax oversight committee report from the City of Arcata. BUSINESS SESSION ITEM NO. 1 ALTERNATIVES Select the Chairman and one Commissioner to the committee or none. Prepared by: Karla Campos, Finance Director Attachments: 1.Sample oversight report from the City of Arcata M E M O R A N D U M Date: November 2, 2016 To: Honorable Mayor and City Council Members From: Transactions and Use Tax Oversight Committee Re: Annual Report to the Council Committee Members Currently, the Transactions and Use Tax Oversight Committee (TUTOC) Committee is composed of the following members, each serving a 4-year term: Term Expires Michael Machi, Chair 12/31/18 Jeff Knapp, Vice Chair 12/31/18 Ginger Campbell 12/31/18 Steve Cole 12/31/16 Robin Hashem 12/31/18 Josh Wolf 12/31/16 Vacancy 12/31/16 Staff Liaison: Janet Luzzi, Finance Director These community members were appointed to represent long institutional memory regarding the City’s budget and community needs for street infrastructure improvements and public safety issues. Since the Committee’s report to Council in November 2015, the members of the TUTOC have met two times: May 12, 2016 and October 4, 2016. Introduction The TUTOC was created in conjunction with the approval of Measure “G” in November 2008, the ballot measure imposing a three-quarter cent general transactions and use tax in the City of Arcata for 20 years. Although this is a general tax, the City is committed to using the increased general fund revenue generated from this tax to improving public works (streets) and public safety services. The duties of the TUTOC are as follows: 1.Review prior year general fund support of public works (streets) and public safety activity budgets relative to historical expenditures in those activities using historical data, community needs, and other information as required to assess the propriety of the City’s expenditure of funds. 2. Report to the City Council the result of the Committee’s review and make recommendations for general fund expenditures for the following fiscal year in the public works (streets) and public safety activity budgets. 3.Review and make recommendations on other general fund matters as the City Council may direct through resolution. Transactions & Use Tax Revenue During fiscal year 2015/16, the City of Arcata received $2,080,841 (net of administration costs of $16,970) from the City’s transactions and use tax, which represents approximately 15 percent of the ATTACHMENT 1 TUTOC Report to City Council Fiscal Year 2015/16 Page 2 City’s total general fund revenue. The following graphic data summarizes and compares the revenue generated by the City’s TUT to sales tax by business type for fiscal year 2015/16. Table 1: Tax Revenue by Business Type TUT Compared to 75% of Sales Tax Revenue 1 Cent Sales Tax Revenue .75 Cent Transactions Tax Revenue 75% of Sales Tax Revenue Favorable (Unfavorable) Variance Percent Transactions Tax of Sales Tax Autos & Transportation $ 88,598 $ 250,538 $ 66,449 $ 184,090 282.78% Building & Construction 279,281 211,179 209,461 1,718 75.62% Business & Industry 374,816 439,506 281,112 158,394 117.26% Food & Drugs 369,058 293,096 276,794 16,303 79.42% Fuel & Service Stations 299,627 239,435 224,720 14,715 79.91% General Consumer Goods 342,492 322,748 256,869 65,879 94.24% Restaurants & Hotels 450,774 341,309 338,081 3,229 75.72% Gross Revenue $ 2,204,646 $ 2,097,811 $ 1,653,485 $ 444,327 95.15% County/State Pool 269,032 State Board of Equalization Admin Fees (29,062) (16,970) Net Revenue $ 2,444,616 $ 2,080,841 Chart 1: Comparison of Transactions and Use Tax as Percentage of Sales Tax Effective April 1, 2015, the total sales tax rate in the City of Arcata is 8.75 percent. Of this amount, the State receives 6.5 percent and the City of Arcata receives 1.0 percent. The City’s TUT tax rate adds another .75 percent. With the passage of the County’s Measure Z, the City’s overall sales tax rate increased by 0.50 percent to 8.75 percent. - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 Autos & Transportation Building & Construction Business & Industry Food & Drugs Fuel & Service Stations General Consumer Goods Restaurants & Hotels 1 Cent Sales Tax Revenue .75 Cent Transactions Tax Revenue 75% of Sales Tax Revenue TUTOC Report to City Council Fiscal Year 2015/16 Page 3 Because the TUT rate is 75 percent of the City’s portion of the sales tax rate, one would expect the percentage of TUT revenue to sales tax revenue to be 75 percent. However for fiscal year 2015/16, the City’s TUT generated approximately 95.2 percent of the revenue received from sales tax before other adjustments. This is because the City’s TUT is assessed and allocated to the district where goods are delivered or placed into use rather than where the sale was negotiated. This means that the City is capturing TUT tax on the sale of automobiles and other registered modes of transportation, like boats, motorcycles and airplanes that occur outside of the City’s taxing district and also on business and industry items that are brought into the district from outside suppliers. The table below compares the revenue received for the past seven years. This revenue has steadily increased over this time period to $2.080 million. It is anticipated that the City will realize approximately $2.1 million in fiscal year 2016/17. Table 2: Tax Revenue Comparison Industry Group 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Autos & Transportation $ 167,165 $ 178,467 $ 180,400 $ 191,519 $ 203,739 $ 220,025 $ 250,538 Building & Construction 182,476 188,855 197,778 181,762 211,377 212,151 211,179 Business & Industry 308,838 356,258 365,135 364,469 415,606 458,303 439,506 Food & Drugs 230,777 217,592 227,497 234,243 237,900 257,315 293,096 Fuel & Service Stations 191,606 260,727 325,665 298,330 288,205 270,813 239,435 General Consumer Goods 240,013 259,676 254,692 278,237 279,566 312,379 322,748 Restaurants & Hotels 222,434 252,529 259,346 273,311 299,056 316,338 341,309 Gross Revenue 1,543,409 1,714,104 1,810,513 1,821,871 1,935,449 2,047,324 2,097,811 Administration Cost (10,550) (10,156) (12,170) (12,754) (14,610) (14,980) (16,970) Net Revenue $1,532,859 $1,703,948 $1,798,343 $1,809,117 $1,920,839 $2,032,344 $2,080,841 Public Works Street Expenditures The inability of the City to adequately maintain much of the City’s street infrastructure was the primary reason Measure G was brought to the voters and approved. Prior to the adoption of the City’s TUT, the general fund was not able to support the maintenance of City streets to the extent required. The City’s general fund support of streets since fiscal year 2005/06 is detailed in Exhibit 1. Over the years presented, the ongoing general fund support has varied from a high of $370,769 in fiscal year 2015/16 to low of $12,505 in fiscal year 2012/13. On average, the City’s support of streets has amounted to approximately $224,300 annually. For fiscal year 2016/17, the City’s support will increase to $425,613. During fiscal year 2015/16 the City utilized these funds for the following projects: • Foster Avenue Extension funding gap based on years of cost escalation since funding was cut due to State Transportation Improvement Program funding availability ($200,000). This project has been identified as a high priority project for many years by the City of Arcata and the Humboldt County Association of Governments (HCAOG) and creates a much needed east-west connection between Highway 101 and Alliance Road. • Matching funds for Rails with Trails Project Phase 1 ($399,080). The Arcata City Trail constitutes the northern end of a planned 13-mile long Humboldt Bay Trail. Once complete, it will become a component of the California Coastal Trail, providing transportation, recreation and coastal access opportunities to the public. TUTOC Report to City Council Fiscal Year 2015/16 Page 4 • 2015 Concrete and Asphalt Improvements ($120,251) o Pedestrian improvements on 8th and H Street intersection and on F Street adjacent to Ball Park fence o Sidewalk and bus stop installations city-wide o Sidewalk infill on 11th Street and various locations o Traffic calming/turn pocket installation at West End Road and Aldergrove Road For 2016/17, the City appropriated an additional $1,175,000 of general funds generated by the City’s TUT. These funds are slated to be used for the following projects which are expected to be completed during 2016/17: • Matching funds for Humboldt Bay Trail Project (Approximately $400,000), Phase 2 of the Arcata Rails with Trails project, which includes construction, operation and maintenance of approximately 3.0 miles of non-motorized multi-use trail that runs from State Route 255 through the Arcata Marsh and Wildlife Sanctuary south to the City limits south of Bayside Cutoff/Highway 101 intersection along Humboldt Bay. • 2016 Pavement Management Project for pavement preservation of various City streets, including ($600,000-$800,000): o Buttermilk Lane between Bayside Road and Margaret Lane; o Bayside Road between Crescent Way and Buttermilk Lane; o Crescent Way between Old Arcata Road and Bayside Road; and o South H Street between Samoa Boulevard and South G Street • Continuation of Citywide traffic calming measures, and sidewalk and ADA improvements • Continue to work on Comprehensive traffic study in the Sunset/Foster/Alliance neighborhood ($49,200) • Continue to work on Old Arcata Road Design Project ($54,450) • Paving local streets using City forces ($30,000 - $40,000): o Intersection of Grant Avenue and Ross Streets o E Street between 4th and 5th Street o Eastern Avenue between Foster Avenue and Grant Avenue o L Street between 15th and 16th o Hauser Court o Westwood Court o 13th Street between A and C streets Pavement Condition Index The City uses the Pavement Condition Index (PCI) as a means to assess and rate the City’s street conditions. This index is a numerical index between 0 and 100 which is used to indicate the general condition of a pavement, where 100 represents the best possible condition and 0 represents the worst possible condition. The latest available PCI for the City of Arcata is 66, a decrease of 4 points since 2013. Staff anticipates that this will remain relatively flat as deferred work continues to exist. However, local sales tax on motor fuel and special fuel taxes have not been keeping up with ongoing maintenance needs and there is no foreseeable funding to replace these revenues. The City’s Engineer estimates that the City of Arcata would require $23.9 million today to increase the City’s PCI from 66 (fair) to 83 (satisfactory). With our current levels of additional Measure G funding of approximately $1,175,000 annually, the City’s Engineer has indicated that it may be difficult to maintain our existing PCI and that the City’s future PCI may fall below our current level. TUTOC Report to City Council Fiscal Year 2015/16 Page 5 Public Safety Expenditures TUT funds have also been appropriated for the purpose of maintaining adequate staffing in the Police Department in order to provide police services commensurate with community needs. For many years, the Arcata Police Department had been understaffed due to under-allocation of personnel, injuries, or the inability of keeping officers, and difficulty in filling vacancies in a timely manner. This resulted in difficulty providing adequate levels of service throughout the entire City, and excessive overtime for employees. As a result of the approval of the City’s TUT, the City has been able to maintain the increased full- staffing levels in the Police Department. Exhibit 2 summarizes operating expenditures since 2009/10 when the positions funded by the TUT became fully staffed. In general, most of the City’s other general fund revenues have recovered from the Great Recession. However, the increases in revenues have not kept pace with the significant increases associated with the level of staffing that has been implemented in the Police Department since the passage of Measure G. As shown on Exhibit 2, since Fiscal Year 2009/10 in which the Police Department was fully staffed as a result of Measure G, total annual operating costs for the Police Department’s Activity 21, Police, have increased by $964,464 or 122 percent. This trend will be difficult to sustain and may cause the City to reduce appropriations for street purposes and dip into reserves to balance its budget. In order to maintain the level of service in the Police Department, the ratio of TUT funds allocated to Public Safety increased from 33 percent of total estimated TUT revenue to approximately 44 percent for fiscal year 2016/17. Also, in order to address the City’s structural deficit in fiscal year 2015/16, the number of officers has decreased by one allocation, from 27 to 26. A memo from the Police Chief (Exhibit 3) is attached to this report that provides more detail of the other benefits achieved by increased staffing levels. Committee Recommendation of Future General Fund Expenditures There are several points the committee wants to be sure the Council pays attention to: 1. The ongoing General Fund Support of streets varies from year to year depending on a variety of factors, including the street projects planned and budgeted, and status of all other demands for the City’s General Funds. From fiscal years 2008/09 to 2016/17, the ongoing General Fund Support of Streets varied from a high of $370,769 in 2015/16 to a low of $12,505 in fiscal year 2012/13 which resulted from the loss of the City’s redevelopment agency. Since the passage of Measure G, an average of $1,087,150 has been appropriated annually, ranging from a high of $1,250,000 in fiscal year 2013/14 to a low of $775,000 in fiscal year 2009/10 when it first became available. For fiscal year 2015/16, the amount of additional funds that has been allocated for street purposes was $1,175,000. 2. The ratio of TUT funds allocated to the Police Department went from 33.0 percent of total estimated TUT revenue in 2013/14 to 49.3 percent in 2014/15. During the promotion of Measure G, the TUT funds were originally to be split 1/3 to public safety and 2/3 to street infrastructure. However, with a few years of experience under its belt, the committee has observed that perhaps this ratio cannot be held hard and fast. The significant fluctuation in the ratio may be necessary in order to maintain adequate public safety staffing. While street improvements can be done on a project-by-project basis, the Police Department’s portion of the TUT monies are directly tied to funding personnel with its ever rising costs of employee health insurance and retirement benefits. The committee highlights this information because it is important for the Council to remain aware during the budget process that while technically the TUT is a general use tax, the original promise of Measure G TUTOC Report to City Council Fiscal Year 2015/16 Page 6 is to support public safety and public works infrastructure and to be sure TUT monies are used for those purposes because that’s what the citizens of Arcata voted for. Committee members encourage the City continue to maintain the staffing levels in the Police Department and maintain the levels of appropriation for the Public Works Department for street improvements. In light of the City’s ongoing financial uncertainty, we encourage the Council to continue making decisions regarding other General Fund expenditures as if TUT did not exist and focus TUT monies on improving the City’s road infrastructure and public safety services. Conclusion In light of the continuing adverse economic conditions and instability at the state level, the Transaction and Use Tax funds have had a significant and positive effect on the financial stability of the City. These TUT funds have helped to provide a level of self-sufficiency, particularly for public safety and street improvement activities, that would have suffered if Arcata voters had not seen the need to support public safety and streets infrastructure and passed Measure G. City of Arcata Public Works - Streets Summary of General Fund Support Budget 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Ongoing GF Support of Streets 136,052$ 96,906$ 174,479$ 321,133$ 235,575$ 200,837$ 188,272$ 12,505$ 303,964$ 226,071$ 370,769$ 425,613$ Additional Support:775,000 1,150,000 1,000,000 1,145,000 1,250,000 1,115,000 1,175,000 1,175,000 Total GF Support 136,052$ 96,906$ 174,479$ 321,133$ 1,010,575$ 1,350,837$ 1,188,272$ 1,157,505$ 1,553,964$ 1,341,071$ 1,545,769$ 1,600,613$ Pavement Mgmt Program - Contracted 662,500$ 987,500$ 810,000$ 940,000$ 1,054,000$ 975,000$ 1,000,000$ 1,000,000$ Pavement Mgmt Program - Force Accounts - 50,000 75,000 75,000 72,000 40,000 50,000 50,000 Traffic Calming 25,000 25,000 25,000 30,000 25,000 16,667 41,667 41,667 Handicapped Ramps 25,000 25,000 25,000 30,000 25,000 16,667 16,667 16,667 Sidewalk Improvements 25,000 25,000 25,000 30,000 25,000 16,666 16,666 16,666 Engineering Services 37,500 37,500 40,000 40,000 49,000 50,000 50,000 50,000 775,000$ 1,150,000$ 1,000,000$ 1,145,000$ 1,250,000$ 1,115,000$ 1,175,000$ 1,175,000$ Exhibit 1Actual General Fund Support City of Arcata Police Department - Activity 21 Summary of Expenditures Fully Initial Implemented Base Year Actual Actual Actual Actual Actual Actual Actual Actual Budget 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Regular Salaries 1,713,975 1,844,244 2,117,795 2,217,426 2,351,750 2,184,217 2,353,831 2,449,511 2,212,626 2,312,657 Overtime Wages 332,562 353,304 264,422 276,774 288,750 397,928 298,618 229,212 393,533 290,200 Part-time Wages 80,220 90,883 71,178 85,465 79,553 63,359 47,302 78,761 115,374 46,320 Employee Benefits 1,085,394 1,214,473 1,321,611 1,515,481 1,641,778 1,646,917 1,831,814 1,727,315 1,814,896 2,028,445 Total Personnel Costs 3,212,150 3,502,904 3,775,006 4,095,146 4,361,831 4,292,420 4,531,565 4,484,799 4,536,430 4,677,622 Materials & Supplies 422,834 521,816 623,496 567,730 534,858 481,975 580,010 662,749 669,760 685,344 Total Operating Costs 4,398,502 4,662,876 4,896,689 4,774,395 5,111,575 5,147,548 5,206,190 5,362,966 Percentage Increase Since 2009/10 100%106%111%109%116%117%118%122% Increased Annual Operating Costs Since 2009/10 - 264,374 498,187 375,893 713,073 749,046 807,688 964,464 # of Sworn Officers 24 27 27 27 27 27 27 27 26 26 # of Dispatchers 6 7 7 7 7 7 7 7 7 7 TUT Funds Allocated 500,000 525,000 585,000 730,000 625,000 1,110,000 925,000 925,000 TUT Funds Budgeted 585,000 1,575,000 1,755,000 1,875,000 1,875,000 2,250,000 2,100,000 2,100,000 % TUT Funds Allocated to Police 85.5%33.3%33.3%38.9%33.3%49.3%44.0%44.0% Additional TUT Funds used to cover other revenue losses due to State taking & reduction of other revenues.305,000 - - 105,000 - 360,000 225,000 225,000 The most appropriate year for comparison would be 2007/08 because this is the year that the Department was most severely understaffed. In fiscal year 2008/09, the City appropriated 4 additional unfunded positions using reserves with the hope that Measure G would be approved.Exhibit 2Comments TO: Transaction and Use Tax Oversight Committee FROM: Tom Chapman, Chief of Police DATE: September 29, 2016 SUBJECT: Police Department Update _____________________________________________________________________________ The police department’s portion of the transaction and use tax is fully dedicated to funding personnel. As in the past year, rising personnel costs (supplemental benefits) have out-paced revenue from the transaction and use tax. Last year we reduced staffing that was paid by general fund for the first year since the adoption of the transaction and use tax. We reduced our allocation of sworn staff from 27 to 26, eliminated the Youth & Family Services Manager Position, and eliminated the evidence technician and record’s specialist positions to be combined into a property and records specialist position. We were also prepared to eliminate one of the K-9 positions. However, with Measure Z funds from Humboldt County we have been able to fund a 27th sworn position dedicated as a School Resource Officer and two Juvenile Diversion Counselors. In addition, through community donations we have been able to reinstate the second K-9 position with the addition of Baron and K-9 Officer O’Donovan. Staffing levels in dispatch and among officers has continued to fluctuate due to medical leave, turnover, accommodating mandatory training, and vacations. The staffing level before the transaction and use tax was inadequate to absorb turnover. The slightest change in staffing resulted in significant overtime and reduced services to the community. This fiscal year we allocated funds for a Dispatch Supervisor position. Even with the addition of this position we had the lowest staffing levels in dispatch that the Department has ever seen. At one point we were down to only one full-time dispatcher. We were able to continue services by having a dedicated dispatch supervisor, part-time employees and utilizing officers. We have hired two new dispatchers, but we have yet to reach our desired staffing level. The department has been working towards community based solutions to prevent crime. The Department has committed resources to proactively recruit citizens to form Neighborhood Watch programs. We currently have 27 Neighborhood Watch groups. In addition to the Neighborhood Watch programs we have also participated in a Downtown Business Watch program to address public safety concerns specific to Downtown vendors. 2 Summary of Current Staffing Levels •23 fully trained sworn positions •2 officers in the field training program •1 officer in the police academy •Total of 26 officers with 1 vacancy •Two sworn staff out on injury. At any given time 2 or 3 officers are on vacation or at training. •There are 6 dispatch positions allocated. We currently have 4 active dispatchers and one out on injury. We are still dependent on the dispatch supervisor, 2 part- time dispatchers and officers to cover routine shifts and additional coverage for training, sick leave and vacation. Even at that level we are covering open shifts with overtime. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 15, 2017 STAFF REPORT AGENDA TITLE: DISCUSS RESERVE ANALYSIS REPORT AND FINDINGS RECOMMENDATION Discuss Reserve Analysis Report and Findings and provide further direction to present reserve policy finding to City Council. EXECUTIVE SUMMARY • City Council requested an analysis of the City’s reserves. • The subcommittee has prepared a Reserve Policy DRAFT Interim Report for review and discussion. BACKGROUND/ANALYSIS During the 2017/18 budget process City Council requested an analysis of the City’s reserves. Three members of the Financial Advisory Commission (FAC) joined the Financial Services Analyst and Finance Director in an in depth analysis with additional hours of independent research. The scope of the analysis included a review of: • the current reserve policy and funding • reserve categories • a Coachella Valley wide comparison of reserves and funding • best practices recommended by accounting standards boards • City demographics, revenue sources, expenditure volatility, other funds dependency on the General Fund, growth projections, and unfunded capital projects • mitigation risks, including a review of insurance policies • a review of City infrastructures and vulnerability to extreme events The sub-committee has prepared a Reserve Policy DRAFT Interim Report (Attachment 1) for review and discussion. ALTERNATIVES The FAC could request the sub-committee to conduct further analysis before presenting the report to City Council. Prepared by: Karla Campos, Finance Director Attachment: 1. Reserve Policy DRAFT Interim Report STUDY SESSION ITEM NO. 1 City of La Quinta Reserve Policy DRAFT Interim Report Financial Advisory Commission Reserve Policy Subcommittee November 2017 ATTACHMENT 1 Page Not Used City of La Quinta Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 TOC-i Table of Contents Contents Executive Summary ....................................................................................................................................... 1 1.0 Background .............................................................................................................................................. 3 1.0 Financial Advisory Commission & Reserve Analysis Subcommittee ...................... 3 1.1 Reserve Policy Subcommittee ............................................................................................... 3 2.0 Reserve Policy ....................................................................................................................................... 3 2.1 Background .................................................................................................................................... 3 2.2 Current Reserve Policy................................................................................................................ 4 2.3 Guiding Principles, City of La Quinta Reserves .................................................................... 5 2.4 Ten-Year Financial Projection .................................................................................................. 6 2.5 Reserves versus Fund Balances ............................................................................................... 7 3.0 General Fund Reserves ........................................................................................................................ 8 3.1 Emergency Reserve ..................................................................................................................... 8 3.1.1 Natural Disaster Component .................................................................................................. 9 3.1.2Economic Disaster Component ................................................................................................ 9 3.2 Cash Flow Reserve ..................................................................................................................... 11 3.3 CIP Sinking Fund Reserve ........................................................................................................ 12 3.4 Unfunded Pension Liability ..................................................................................................... 12 4.0 Summary of All Recommendations ........................................................................................... 13 City of La Quinta 1 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 City of La Quinta Financial Advisory Commission Reserve Policy Sub-Committee Interim Report Executive Summary The La Quinta (City) City Council formed the La Quinta Financial Advisory Commission (FAC) in June 2017 to replace the long-standing Investment Advisory Board (IAB). At the regular FAC meeting on August 9, 2017, the FAC appointed Commissioners Dick Mills, Daniel Twohey and Mark Johnson to serve on a sub-committee to analyze and recommend improvements to the City’s Reserve Policy. The Reserve Policy Subcommittee met with City Finance Staff four times and met/communicated together as a group on several occasions. The Subcommittee focused on developing a pragmatic methodology to determine the appropriate reserve levels as opposed to utilizing a percentage. This process establishes a rationale and protocol that will make it less feasible for an outside agency (the state) to access the City’s reserves. The following interim recommendations were reviewed and approved by the FAC on November 15, 2017. Recommendations The following Reserve Policy changes are recommended and summarized in Table 1: 1. Utilize a Ten-Year Projection to evaluate the City’s financial condition and update it annually. 2. Fund Balances and Reserves should be referenced separately in presentations to eliminate confusion and give true picture of Reserves. 3. Emergency Reserve with two components: Natural Disaster and Economic a. Emergency Reserve Natural Disaster Component i. Modify the City Ordinance to simplify access to the Emergency Reserve. ii. Undertake a comprehensive Asset/Risk/Insurance/Government Funding Study (study) which is essential to setting this reserve level. City of La Quinta 2 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 iii. Establish an Asset Management Program as part of this Study to better track, maintain and replace assets and develop a long-term Capital Improvement Program (CIP). iv. Fund this reserve initially with $1.5 million and set the reserve level after the Study is complete. b. Emergency Reserve Economic Disaster Component-set at $11 million and fund with $1.0 million annually. 4. Cash Flow Reserve. Set at $5 million initially and, reset annually using the formula. 5. CIP Sinking Fund Reserve. Set at $10 million and fund with $1.0 million annually. 6. CalPERS Pension Trust. Form an irrevocable trust and fund with $1 million annually for 10 years as a General Fund Expense. Table 1-Reserve/Trust Recommendations Reserve/Trust Reserve Target Annual Funding ($) Emergency Reserve Natural Disaster TBD $1,500,000 Economic Disaster $11,000,000 $1,000,000 Total Emergency Reserve TBD $2,500,000 Cash Flow $5,000,000 $500,000 CIP Sinking Fund $10,000,000 $1,000,000 Total Reserves $26,000,000 $4,000,000 CalPERS Pension Trust $10,000,000 $1,000,000 City of La Quinta 3 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 1.0 Background 1.0 Financial Advisory Commission & Reserve Analysis Subcommittee The principal functions of the FAC are: (1) review at least annually the City's investment policy and recommend appropriate changes; (2) review monthly treasury reports 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 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, and (6) serve as a resource for the City treasurer on matters such as proposed investments, internal controls, use of financial institutions, custodians, brokers and dealers. The current FAC members include; George Batavick (Chairman), Richard (Dick) Mills (Vice-Chairperson), Steven Rosen, Javier Lopez, Sherwyn Turbow, , Daniel Twohey and Mark Johnson. 1.1 Reserve Policy Subcommittee At the regular FAC meeting on August 8, 2017, the FAC appointed Dick Mills, Daniel Twohey and Mark Johnson to serve on a sub-committee to analyze and recommend improvements to the City’s Reserve Policy. 2.0 Reserve Policy 2.1 Background Financial Reserves provide the City with financial flexibility and strength to deal with planned and unplanned expenditures. Reserve levels must balance realistic financial need and risk. The reserve policy should strive to establish reserve levels that are not over or under funded. City of La Quinta 4 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 2.2 Current Reserve Policy The current Reserve Policy includes the following major Reserve Fund Descriptions:  Non-spendable: not available to fund operating expenditures of the organization because they are in the form of land and receivables.  Restricted: limited to special purpose funds such as Measure A (transportation), Gas Tax Fund (streets) and Quimby Funds (parks).  Committed: cash flow (currently working capital), emergency, capital improvements.  Unassigned (Unappropriated): net reserves available after satisfying the other reserve categories. Table 2 depicts the General Fund Reserve/Fund Balances as of June 30, 2016. Table 2 - General Fund Reserve/Fund Balances-6/30/16 Reserve: Amount ($) Non-Spendable Prepaid Costs $204,589 Land Held for Resale $8,320,000 Advances on Other Funds $14,974,800 Due From Other Governments $25,105,681 Subtotal Non-Spendable $48,605,070 Committed Emergency Reserve $15,576,000 Post-Retirement Health Benefits $1,523,000 Capital Projects $2,302,000 Working Capital (Cash Flow) Reserve $3,894,000 Carryovers $4,274,046 Subtotal Committed $27,569,046 Unassigned (Unappropriated) $13,822,012 Total Fund Balance $89,996,128 City of La Quinta 5 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 Current Reserve Policy includes the following targets:  Working Capital Reserve: 10% of Adopted Operating Budget  Emergency Reserve: 40% of Adopted Operating Budget The General Accounting Standards Board (GASB) is the organization that establishes and improves standards for accounting and financial reporting for state and local governments. GASB provides that it is common practice for governments to put aside resources to be used in a financial emergency or for cash flow purposes. Reserve funds are crucial to the financial viability and stability of a municipality. Deferred maintenance, increased debt, and cash flow problems are common indicators of weak reserve balances. While strong reserve funds:  manage cash flows and volatility in revenue and expenditures  address unexpected economic fluctuations with long-term solutions  provide needed money if a municipality should find itself facing unexpected financial difficulties  reduce the cost of borrowing money There is no guidance for a “maximum” reserve limit but rather each organization should evaluate reserves depending upon their unique circumstances. There will always be more needs and unanticipated events than there are resources; therefore governments must balance the need to be fiscally responsible with what are reasonable reserves. The amount of reserves a municipality maintains is determined by the community’s risk tolerance; a low-risk tolerance will result in higher reserves while a high-risk tolerance will result in lower reserves. 2.3 Guiding Principles, City of La Quinta Reserves The City follows the following budgetary and cash management principles:  One-time revenues should not be utilized for on-going expenditures. One- time revenues should be put into reserves, appropriated for one-time expenditures  Reserves for capital improvements, equipment replacement, and infrastructure should be part of the on-going budget process. Based on depreciation, or other relevant criteria, contributions should be made annually (into a revolving fund) as part of the budget process toward replacement of equipment, buildings, infrastructure, etc.  When authorizing the use of reserves, developing a plan to replenish those reserves should also be considered.  The reserve policy can be amended by resolution and requires a 4/5th approval of the Council. City of La Quinta 6 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 2.4 Ten-Year Financial Projection A Ten-Year Financial Projection is essential to aid in determining appropriate Reserve Policy. The La Quinta Advisory Committee1 developed this tool to analyze various Revenue and Expenditure Scenarios in FY 2015/16. Updated Ten-Year Financial Projections (Exhibits 1 and 2) are located in the Appendix. The Ten-Year Financial Projection is an Excel Workbook (Model) that utilizes the FY 2017/18 Budget as the Base Year and applies a specific inflator (growth projection) for each revenue and expenditure line item to each of the remaining ten years. The Model includes the following key features:  14 Revenue line items: All revenue line items have a 1% inflator except for Motor Vehicle In-Lieu, Fire Service Credit, Property Tax, and Transient Occupancy Tax which have a 2% inflator. The largest revenue line items are Property Tax, Sales Tax, and Transient Occupancy Tax (TOT).  11 Expenditure line items: Most Expenditure line items have a 2% inflator except for Salaries and Medical Insurance Costs which have a 3% inflator and Police Contract which has a 7% inflator (Exhibit 1) to resemble historical increases or a 10% inflator (Exhibit 2) based on current police contract projections. The Capital Improvements line item is not inflated as these costs are derived directly from the Ten-Year Capital Improvement Budget (updated) provided to the La Quinta Advisory Committee in 2015 and represent the annual minimum General Fund contribution for road maintenance to secure annual Measure A and SB1 Gas Tax Funding. The Fire Service Contract is anticipated to increase by 4% annually.  Additional Revenue Sources: These include special revenues including (1) Redevelopment Agency (RDA) payback (ends in FY 2029/30), (2) estimated SilverRock Resort Net Revenue and (3) potential TOT tax increase (not used for this analysis). The Model shows that before any Additional Revenue Sources are applied, there is a cumulative Revenues/Expenditure deficit of -$40.6 million at the end of the Ten-Year period (Exhibit 1) or a deficit of -$84.1 million (Exhibit 2). After the Additional Revenue Sources are applied, there is a cumulative +$56.7 million Revenues/Expenditure surplus (Exhibit 1) or +$13.1 million (Exhibit 2). 1 The La Quinta Advisory Committee Report of January 2016 is a good reference for the City’s financial system. City of La Quinta 7 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 The Ten-Year Projection demonstrates the importance of the RDA payback and the SilverRock development to the City’s financial future. It also shows that there is about $5 million/year available to fund the Reserve accounts during this Ten-Year period (Exhibit 1). However, if Police Contract services are escalated to 10% the available funding is reduced to $13.1 million or $1.31 million annually. In addition to the projected Ten-Year surplus, the city currently has an unassigned fund balance of approximately $14 million. These funds are non-restrictive and can be used to fund reserves, capital projects, or operating expenses at the discretion of the City Council. The Ten-Year Projection provides an easy tool for the City to periodically analyze its financial condition as new information becomes available. One can easily glean the impact on City finances by simply changing an inflator assumption or line item starting balance. It is clear that small changes in some of the inputs can result in significant changes in the financial projections. Recommendation: Utilize a Ten-Year Projection to evaluate the City’s financial condition and update the reserve levels/policy. The Ten-Year Projection should be updated annually. 2.5 Reserves versus Fund Balances The financial terminology utilized for current Reserve Policy is confusing but regulated by GASB Statement No. 54. The terms “reserve” and “fund balance” are used interchangeably and can lead to a misunderstanding of actual financial condition. For example, Table 2 shows a total General Fund Reserve/Fund Balance of $90 million at the end of FY2015/16. The only line items in Table 2 classified as “reserves” are Emergency Reserve ($15.6 million) and Cash Flow Reserve ($3.9 million) for a total of $19.5 million. Therefore, true “reserves” are much less than the reported $90 million level. Recommendation: To eliminate this confusion, the following classifications are suggested and should be re-categorized to place actual reserves together (at the top) in the Committed Fund Balance category: General Fund Balances  Non-Spendable City of La Quinta 8 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 General Fund Committed Reserves2  Emergency  Cash Flow (replaces Working Capital)  Capital Improvement Program (CIP) Sinking Fund  Carryovers This provides a grouping representation of reserves by re-categorizing the items of which there is no reserve funding potential. Fund balance reporting is governed by GASB. The GASB regulation is intended to provide a uniform method for reporting reserved and unreserved fund balances for all government agencies. Fund balances are reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purpose for which amounts in those funds can be spent. The proposed General Fund Reserve line items are further discussed in Section 3. 3.0 General Fund Reserves The subcommittee focused on developing a pragmatic methodology to determine the appropriate reserve levels as opposed to utilizing an arbitrary percentage. This process establishes a rationale and protocol that will make it less feasible for an outside agency (the State) to access the City’s reserves. 3.1 Emergency Reserve As defined in the City’s municipal code (§ 2.20.020 A), the terms emergency and disaster mean: “ The actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this City caused by such conditions as air pollution, fire, flood, storm, epidemic riot, earthquake or other conditions, including conditions resulting from war or imminent threat of war but other than conditions resulting from a labor controversy, which conditions are or are likely to be beyond the control of the services, regular personnel, equipment and facilities of the City and which may require the combined forces of other political jurisdictions to combat.” Fiscal emergencies can be caused by natural disasters or swings in the economy. 2 Note the Post-Retirement Health Benefits Fund is now an OPEB Trust being funded directly from the General Fund Budget. City of La Quinta 9 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 Recommendation: One Emergency Reserve with two components---Natural Disaster and Economic. Modify the city ordinance to simplify access to the Emergency Reserve. 3.1.1 Natural Disaster Component The Emergency Reserve-Natural Disaster component will provide funding for floods, earthquakes and other natural disasters. The determination of the level of this reserve component requires the following: 1. Capital Asset Inventory & Valuation: what do we have and what is it worth. 2. Capital Asset Risk Assessment: which assets are more critical in a disaster. 3. Insurance Coverage: how do we evaluate risk versus premium. 4. Government Disaster Funding: how much will government contribute in a disaster. A proper Emergency Reserve-Natural Disaster component cannot be established until these four items are researched and analyzed. Recommendation: Undertake a comprehensive Asset/Risk/Insurance/Government Funding Study as soon as possible. Establish an Asset Management Program as part of this Study to better track, maintain and replace assets and develop long-term Capital Improvement Program (CIP). Consider hiring a consultant to perform these functions. Once the Study is complete, the Subcommittee will reconvene and evaluate and recommend the Emergency Reserve-Natural Disaster component reserve level. Recommendation: Fund this reserve initially with $1.5 million annually from the $5.0 million/year available and set the reserve level after the Study is complete. 3.1.2 Economic Disaster Component The Emergency Reserve-Economic Disaster component will provide funding to respond to a downturn in the economy. To establish this reserve level, the City’s financial data was analyzed from 2000 to present as this period included probably the worst economic downturn since the Great Depression. Figure 1 (Long-Term Economic History) plots Revenue, Expenditures and Net Income adjusted for inflation from 2000-2017. The Net Income line is the key data as this gives a good indication of the financial health of the City in any given year. A linear regression line was applied to the Net Income data to establish the normalized level of Net Income for this Seven-Year City of La Quinta 10 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 period. Any Net Income below the Linear Regression curve indicates the need for economic input to recover. During the period from 2008 to 2014, there are two troughs. The period between 2008 and 2011 (economic recession) would require approximately $10 million to recover and the period from 2011 to 2014 (redevelopment dissolution) would require $11 million to recover. Access to this reserve should be granted for economic stabilization and volatility as a direct result of economic conditions during periods of unanticipated economic downturns or unanticipated spikes in operating costs. Use of emergency reserves due to economic pressures should be limited to maintaining essential day-to-day services, such as public safety, in responding to adverse circumstances, while the City formulates a longer-term strategy. Figure 1-Long-Term Economic History This was a very unusual economic period and back-to-back downturns are unlikely in the future. $(10,000,000) $‐ $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 City of La Quinta‐Revenues‐Expenditures & Net Income CPI‐Adjusted FY2000‐2017 Revenue Expenses Net Income Linear (Net Income) City of La Quinta 11 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 Recommendation: Set the Emergency Reserve-Economic Disaster component at $11 million and fund with $1.0 million annually from the $5 million/year available. 3.2 Cash Flow Reserve The Cash Flow Reserve replaces the existing terminology of Working Capital Reserve. This reserve covers the inherent mismatch of revenues versus expenditures due primarily to tax revenue receipts. This reserve also serves as a funding source for capital projects with various state and federal grants, which are typically reimbursement based. Reserves allows for capital projects to incur costs and stay on track with reimbursement, typically within 90-180 days. The Cash Flow Reserve is updated annually by calculating the monthly surplus/(deficit) of revenues versus expenditures; with the largest cumulative deficit becoming the updated Cash Flow Reserve. Figure 2 shows the monthly cash imbalances whereby revenues are not received uniformly throughout the year, which results in peaks and valleys depending upon large payments that are received throughout the year. For example, large property tax payments are usually received in December and May. Similarly, transient occupancy tax payments increase during months with large festivals and events. The timing imbalance of revenue receipts versus expenditures is funded from the City’s cash flow reserves. For FY 2016/17 this analysis yields $4.7 million. Recommendation: Set Cash Flow Reserve at $5 million initially and fund annually subject to the calculation. Figure 2-Cash Flow Imbalance for FY 2016/17 City of La Quinta 12 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 3.3 CIP Sinking Fund Reserve Exhibit 3 (Appendix) is page 50 from the FY 2015/16 Comprehensive Annual Financial Report (CAFR) describing the City’s capital assets. Table 2 summarizes the Depreciable Assets from this information. Table 3-Depreciable Assets Depreciable Assets Balance 6/30/16 ($ million) Total Assets 298 Accumulated Depreciation 141 Net Capital Assets 157 Annual Depreciation 9 The total Ten-Year Capital Improvement Program (CIP) utilized for Exhibits 1 and 2 is $33.4 million or $3.33 million/year. This amount of capital expenditure is approximately 37% of depreciation (3.33/9.0 = 0.37). Capital expenses are supplemented with restricted funds such as Measure A and Gas Tax for street improvements, Quimby for parks, developer impact fees, and grant funds. The city also maintains ten-year revenue and expenditure projections on these funding sources. For FY 2017/18 General Fund capital expenses totaled 6.52 million or approximately 72% of depreciation (6.52/9.00=72) and are a reasonable barometer for evaluating the proper level of investment in capital assets. Ideally it is desirable to match annual depreciation with capital spending, and it is recommended to establish a CIP Sinking Fund Reserve to develop funds to fill that gap. Recommendation: Set CIP Sinking Fund Reserve at $10 million and fund with $1.0 million annually from the $5 million/year available. 3.4 Unfunded Pension Liability As of June 30, 2016, the CalPERS Net Pension Liability was $8.7 million (7.5% discount rate). Exhibits 1 and 2 shows the actual CalPERS Unfunded Liability cost of $454,756 in FY 2016/17. However, the CalPERS Net Pension Liability is a moving target and is dependent on the CalPERS discount rate. For example, if the discount rate lowers to 6.5%, the Net Pension Liability increases to $14 million. City of La Quinta 13 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 In December 2016, CalPERS lowered the discount rate (rate of return for investments) from 7.5% to 7%, which will increase the CalPERS total unfunded pension liability for all participating agencies, including the city. The City’s annual unfunded pension liability payment will further increase starting in FY 2018/19 and continuing through 2021/22. In addition, every four year CalPERS evaluates all pension plans to ensure financial stability. This evaluation has been completed and is being presented to the CalPERS Board on November 13-15, 2017. Results from this valuation may further decrease the discount rate, increasing the unfunded liability for all participating agencies. Eliminating or reducing the CalPERS Net Pension Liability is prudent as it will improve the financial condition of the City and send a message that the City is addressing this issue in a fiscally responsible manner. Assuming the CalPERS Net Pension Liability is $10 million (between $8.7 and $14.0 million), the liability could be eliminated or reduced in this Ten-Year period by contributing another $1.0 million/year. If the city chose to open and fund a pension trust, any additional discretionary payments would reduce the unfunded pension liability and future contributions. In general, paying earlier reduces long-term pension costs because additional contributions have more time to compound investment returns, reducing the need for future contributions. The extent to which any additional contributions would lower future payments would depend largely on realized investment returns. Recommendation: Form an irrevocable CalPERS Pension Trust and set at $10 million and fund with $1.0 million annually as a General Fund Expense. 4.0 Summary of All Recommendations The following Reserve Policy changes are recommended and summarized in Table 3: 1. Utilize a Ten-Year Projection to evaluate the City’s financial condition and update it annually. 2. Fund Balances and Reserves should be referenced separately in presentation to eliminate confusion and give a true picture of Reserves. 3. Emergency Reserve with two components: Natural Disaster and Economic. a. Emergency Reserve Natural Disaster Component: i. Modify the City Ordinance to simplify access to the Emergency Reserve. ii. Undertake a comprehensive Asset/Risk/Insurance/Government Funding Study (study) which is essential to setting this reserve level. City of La Quinta 14 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 iii. Establish an Asset Management Program as part of this Study to better track, maintain and replace assets and develop long-term Capital Improvement Program (CIP). iv. Fund this reserve initially with $1.5 million and set the reserve level after the Study is complete. b. Emergency Reserve-Economic Disaster: set at $11 million and fund with $1.0 million annually. 4. Cash Flow Reserve: set at $5 million initially and reset annually using the formula. 5. CIP Sinking Fund Reserve: set at $10 million and fund with $1.0 million annually. 6. CalPERS Pension Trust: form an irrevocable trust and fund with $1 million annually for 10 years as a General Fund Expense. Table 4-Reserve/Trust Recommendations Reserve/Trust Reserve Target Annual Funding ($) Emergency Reserve Natural Disaster TBD $1,500,000 Economic Disaster $11,000,000 $1,000,000 Total Emergency Reserve TBD $2,500,000 Cash Flow $5,000,000 $500,000 CIP Sinking Fund $10,000,000 $1,000,000 Total Reserves $26,000,000 $4,000,000 CalPERS Pension Trust $10,000,000 $1,000,000 City of La Quinta 15 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 Appendix City of La Quinta 16 Financial Advisory Commission Reserve Policy Subcommittee Interim Report-November 2017 List of Exhibits Exhibit 1–Ten-Year Financial Projection with a 7% Increase in Police Service Contract Exhibit 2–Ten-Year Financial Projection with a 10% Increase in Police Service Contract Exhibit 3–FY 2015/16 CAFR Page 50-Capital Assets City of La QuintaAs of November 7, 2017ActualGrowthBudget17/18 to 27/282016/17Projections2017/182018/192019/202020/212021/222022/232023/242024/252025/262026/272027/28TOTAL1. Cash ReceiptsSales Tax - Bradley Burns8,597,655 1% 8,776,100 8,863,861 8,952,500 9,042,025 9,132,445 9,223,769 9,316,007 9,409,167 9,503,259 9,598,291 9,694,274 101,511,698 Property Tax9,237,781 2% 8,579,100 8,750,682 9,225,696 9,410,210 9,598,414 9,790,382 9,986,190 10,185,913 10,389,632 10,597,424 10,809,373 107,323,015 Transient Occupancy Tax8,857,359 2% 8,516,900 8,687,238 8,860,983 9,038,202 9,218,966 9,403,346 9,591,413 9,783,241 9,978,906 10,178,484 10,382,054 103,639,732 Fire Service Property Tax5,532,859 2% 6,726,000 6,860,520 6,997,730 7,137,685 7,280,439 7,426,047 7,574,568 7,726,060 7,880,581 8,038,193 8,198,956 81,846,780 Fire Property Tax Reserves138,680 281,438 432,650 592,709 762,027 941,029 1,130,161 1,329,889 1,540,696 1,763,088 8,912,365 Motor Vehicle In-Lieu$3,813,213 2% 3,708,000 3,782,160 3,857,803 3,934,959 4,013,658 4,093,932 4,175,810 4,259,326 4,344,513 4,431,403 4,520,031 45,121,597 Franchise Fees$1,764,652 1% 1,553,000 1,568,530 1,584,215 1,600,057 1,616,058 1,632,219 1,648,541 1,665,026 1,681,676 1,698,493 1,715,478 17,963,294 Charges for Services$1,024,157 1%1,258,200 1,270,782 1,283,490 1,296,325 1,309,288 1,322,381 1,335,605 1,348,961 1,362,450 1,376,075 1,389,836 14,553,391 Other Revenue/Intergovernmental$1,410,081 1%1,699,600 1,466,596 1,481,262 1,496,075 1,511,035 1,526,146 1,541,407 1,556,821 1,572,389 1,588,113 1,603,994 17,043,439 Development Related Permits$759,969 1%936,700 946,067 955,528 965,083 974,734 984,481 994,326 1,004,269 1,014,312 1,024,455 1,034,700 10,834,654 Document Transfer Tax$585,333 1%531,000 536,310 541,673 547,090 552,561 558,086 563,667 569,304 574,997 580,747 586,554 6,141,989 Business Licenses/Permits$358,943 1%321,000 324,210 327,452 330,727 334,034 337,374 340,748 344,155 347,597 351,073 354,584 3,712,954 Fines and Assessments$348,345 1%246,000 248,460 250,945 253,454 255,989 258,548 261,134 263,745 266,383 269,047 271,737 2,845,441 SilverRock Resert Net Revenue 531,400 1,260,000 2,500,000 2,960,000 2,842,000 3,222,000 3,540,000 3,575,400 3,611,154 24,041,954 2. Total Revenue$42,290,347$42,851,600 $43,444,096 $45,132,114 $46,744,541 $48,890,330 $50,278,738 $51,112,444 $52,468,151 $53,786,584 $54,847,894 $55,935,813 $118,216,7603. Cash Paid OutPolice Service Contract$14,417,358 7% $15,879,100 $16,990,637 $18,179,982 $19,452,580 $20,814,261 $22,271,259 $23,830,247 $25,498,365 $27,283,250 $29,193,078 $31,236,593$250,629,352Maintenance and Operations$8,201,081 2% $8,994,136 $9,174,019 $8,957,499 $9,136,649 $9,319,382 $9,505,770 $9,695,885 $9,889,803 $10,087,599 $10,289,351 $10,495,138$105,545,230Fire Service Contract$5,816,590 4% $6,730,000 $6,999,200 $7,279,168 $7,570,335 $7,873,148 $8,188,074 $8,515,597 $8,856,221 $9,210,470 $9,578,888 $9,962,044$90,763,145Salaries (Full-Time Employees)$4,989,399 3% $5,518,200 $5,683,746 $5,854,258 $6,029,886 $6,210,783 $6,397,106 $6,589,019 $6,786,690 $6,990,291 $7,199,999 $7,415,999$70,675,978Capital Expense, Street Maintenance $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000$17,072,000Employee Medical Insurance Costs$890,529 3% $1,373,300 $1,414,499 $1,456,934 $1,500,642 $1,545,661 $1,592,031 $1,639,792 $1,688,986 $1,739,655 $1,791,845 $1,845,600$17,588,946Other Personnel Costs$575,564 2% $896,100 $914,022 $932,302 $950,948 $969,967 $989,367 $1,009,154 $1,029,337 $1,049,924 $1,070,922 $1,092,341$10,904,386PERS Unfunded Liability $454,756 $592,784 $711,814 $948,500 $986,100 $1,138,800 $1,341,000 $1,348,200 $1,425,600 $1,454,112 $1,483,194 $1,512,858$12,942,962Salaries (Part-Time/Temporary)$178,844 2% $340,400 $347,208 $354,152 $361,235 $368,460 $375,829 $383,346 $391,013 $398,833 $406,810 $414,946$4,142,231PERS Normal Payroll Costs$178,844 2% $363,816 $371,092 $378,514 $386,084 $393,806 $401,682 $409,716 $417,910 $426,268 $434,794 $443,490$4,427,1731996 Bond Debt Service $678,200 $671,400 $668,200$1,339,6004. Total Cash Paid Out$37,933,165$42,911,236 $44,826,437 $45,893,310 $47,926,460 $50,186,269 $52,614,118 $54,972,957 $57,535,924 $60,192,402 $63,000,881 $65,971,009 $586,031,0035. Yearly Operating Cash Position(2 minus 4)$4,357,182 -$59,636 -$1,382,341 -$761,196 -$1,181,920 -$1,295,939 -$2,335,380 -$3,860,512 -$5,067,773 -$6,405,818 -$8,152,987 -$10,035,196 -$40,538,6996. Measure G Revenue (85% of Sales Tax Bradley Burns)1,462,6505,700,000 7,534,282 7,609,625 7,685,721 7,762,578 7,840,204 7,918,606 7,997,792 8,077,770 8,158,548 8,240,133$84,525,2587. Cash Position After Measure G(5 plus 6)$5,819,832 $5,640,364 $6,151,941 $6,848,429 $6,503,801 $6,466,639 $5,504,824 $4,058,094 $2,930,019 $1,671,952 $5,561 -$1,795,063 $43,986,5598. Measure G UsesCapital Expenses750,000 4,969,464 3,731,561 3,859,103 3,764,599$16,324,727Meaure G Reserves712,650 330,500$330,500Public Safety Fund300,000$300,0009. Total Measure G Uses1,462,650 5,599,964 3,731,561 3,859,103 3,764,599 - - - - - - - $16,955,22710. Cash Position After Measure G(7 minus 9)$4,357,182$40,400 $2,420,380 $2,989,326 $2,739,202 $6,466,639 $5,504,824 $4,058,094 $2,930,019 $1,671,952$5,561 -$1,795,063 $27,031,33211. RDA Loan RepaymentRepayment based on Last and Final ROPS1,826,881 $2,441,620 $2,490,453 $2,540,262 $2,591,066 $2,642,888 $2,695,746 $2,749,661 $2,804,654 $2,860,747 $2,917,962 $2,976,321$29,711,38012. Cash Position After RDA Repayment(10 plus 11)$6,184,063 $2,482,020 $4,910,833 $5,529,588 $5,330,268 $9,109,527 $8,200,570 $6,807,755 $5,734,673 $4,532,699 $2,923,523 $1,181,258 $56,742,712GENERAL FUND FINANCIAL PROJECTIONSEXHIBIT 1 City of La QuintaAs of November 7, 2017ActualGrowthBudget17/18 to 27/282016/17Projections2017/182018/192019/202020/212021/222022/232023/242024/252025/262026/272027/28TOTAL1. Cash ReceiptsSales Tax - Bradley Burns8,597,655 1% 8,776,100 8,863,861 8,952,500 9,042,025 9,132,445 9,223,769 9,316,007 9,409,167 9,503,259 9,598,291 9,694,274 101,511,698 Property Tax9,237,781 2% 8,579,100 8,750,682 9,225,696 9,410,210 9,598,414 9,790,382 9,986,190 10,185,913 10,389,632 10,597,424 10,809,373 107,323,015 Transient Occupancy Tax8,857,359 2% 8,516,900 8,687,238 8,860,983 9,038,202 9,218,966 9,403,346 9,591,413 9,783,241 9,978,906 10,178,484 10,382,054 103,639,732 Fire Service Property Tax5,532,859 2% 6,726,000 6,860,520 6,997,730 7,137,685 7,280,439 7,426,047 7,574,568 7,726,060 7,880,581 8,038,193 8,198,956 81,846,780 Fire Property Tax Reserves138,680 281,438 432,650 592,709 762,027 941,029 1,130,161 1,329,889 1,540,696 1,763,088 8,912,365 Motor Vehicle In-Lieu$3,813,213 2% 3,708,000 3,782,160 3,857,803 3,934,959 4,013,658 4,093,932 4,175,810 4,259,326 4,344,513 4,431,403 4,520,031 45,121,597 Franchise Fees$1,764,652 1% 1,553,000 1,568,530 1,584,215 1,600,057 1,616,058 1,632,219 1,648,541 1,665,026 1,681,676 1,698,493 1,715,478 17,963,294 Charges for Services$1,024,157 1%1,258,200 1,270,782 1,283,490 1,296,325 1,309,288 1,322,381 1,335,605 1,348,961 1,362,450 1,376,075 1,389,836 14,553,391 Other Revenue/Intergovernmental$1,410,081 1%1,699,600 1,466,596 1,481,262 1,496,075 1,511,035 1,526,146 1,541,407 1,556,821 1,572,389 1,588,113 1,603,994 17,043,439 Development Related Permits$759,969 1%936,700 946,067 955,528 965,083 974,734 984,481 994,326 1,004,269 1,014,312 1,024,455 1,034,700 10,834,654 Document Transfer Tax$585,333 1%531,000 536,310 541,673 547,090 552,561 558,086 563,667 569,304 574,997 580,747 586,554 6,141,989 Business Licenses/Permits$358,943 1%321,000 324,210 327,452 330,727 334,034 337,374 340,748 344,155 347,597 351,073 354,584 3,712,954 Fines and Assessments$348,345 1%246,000 248,460 250,945 253,454 255,989 258,548 261,134 263,745 266,383 269,047 271,737 2,845,441 SilverRock Resert Net Revenue 531,400 1,260,000 2,500,000 2,960,000 2,842,000 3,222,000 3,540,000 3,575,400 3,611,154 24,041,954 2. Total Revenue$42,290,347$42,851,600 $43,444,096 $45,132,114 $46,744,541 $48,890,330 $50,278,738 $51,112,444 $52,468,151 $53,786,584 $54,847,894 $55,935,813 $118,216,7603. Cash Paid OutPolice Service Contract$14,417,358 10% $15,879,100 $17,467,010 $19,213,711 $21,135,082 $23,248,590 $25,573,449 $28,130,794 $30,943,874 $34,038,261 $37,442,087 $41,186,296$294,258,255Maintenance and Operations$8,201,081 2% $8,994,136 $9,174,019 $8,957,499 $9,136,649 $9,319,382 $9,505,770 $9,695,885 $9,889,803 $10,087,599 $10,289,351 $10,495,138$105,545,230Fire Service Contract$5,816,590 4% $6,730,000 $6,999,200 $7,279,168 $7,570,335 $7,873,148 $8,188,074 $8,515,597 $8,856,221 $9,210,470 $9,578,888 $9,962,044$90,763,145Salaries (Full-Time Employees)$4,989,399 3% $5,518,200 $5,683,746 $5,854,258 $6,029,886 $6,210,783 $6,397,106 $6,589,019 $6,786,690 $6,990,291 $7,199,999 $7,415,999$70,675,978Capital Expense, Street Maintenance $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000 $1,552,000$17,072,000Employee Medical Insurance Costs$890,529 3% $1,373,300 $1,414,499 $1,456,934 $1,500,642 $1,545,661 $1,592,031 $1,639,792 $1,688,986 $1,739,655 $1,791,845 $1,845,600$17,588,946Other Personnel Costs$575,564 2% $896,100 $914,022 $932,302 $950,948 $969,967 $989,367 $1,009,154 $1,029,337 $1,049,924 $1,070,922 $1,092,341$10,904,386PERS Unfunded Liability $454,756 $592,784 $711,814 $948,500 $986,100 $1,138,800 $1,341,000 $1,348,200 $1,425,600 $1,454,112 $1,483,194 $1,512,858$12,942,962Salaries (Part-Time/Temporary)$178,844 2% $340,400 $347,208 $354,152 $361,235 $368,460 $375,829 $383,346 $391,013 $398,833 $406,810 $414,946$4,142,231PERS Normal Payroll Costs$178,844 2% $363,816 $371,092 $378,514 $386,084 $393,806 $401,682 $409,716 $417,910 $426,268 $434,794 $443,490$4,427,1731996 Bond Debt Service $678,200 $671,400 $668,200$1,339,6004. Total Cash Paid Out$37,933,165$42,911,236 $45,302,810 $46,927,039 $49,608,962 $52,620,598 $55,916,309 $59,273,504 $62,981,433 $66,947,413 $71,249,891 $75,920,712 $629,659,9065. Yearly Operating Cash Position(2 minus 4)$4,357,182 -$59,636 -$1,858,714 -$1,794,925 -$2,864,421 -$3,730,268 -$5,637,570 -$8,161,059 -$10,513,282 -$13,160,829 -$16,401,997 -$19,984,899 -$84,167,6026. Measure G Revenue (85% of Sales Tax Bradley Burns)1,462,6505,700,000 7,534,282 7,609,625 7,685,721 7,762,578 7,840,204 7,918,606 7,997,792 8,077,770 8,158,548 8,240,133$84,525,2587. Cash Position After Measure G(5 plus 6)$5,819,832 $5,640,364 $5,675,568 $5,814,699 $4,821,300 $4,032,310 $2,202,633 -$242,453 -$2,515,490 -$5,083,059 -$8,243,449 -$11,744,766 $357,6568. Measure G UsesCapital Expenses750,000 4,969,464 3,731,561 3,859,103 3,764,599$16,324,727Meaure G Reserves712,650 330,500$330,500Public Safety Fund300,000$300,0009. Total Measure G Uses1,462,650 5,599,964 3,731,561 3,859,103 3,764,599 - - - - - - - $16,955,22710. Cash Position After Measure G(7 minus 9)$4,357,182$40,400 $1,944,007 $1,955,596 $1,056,701 $4,032,310 $2,202,633 -$242,453 -$2,515,490 -$5,083,059 -$8,243,449 -$11,744,766 -$16,597,57111. RDA Loan RepaymentRepayment based on Last and Final ROPS1,826,881 $2,441,620 $2,490,453 $2,540,262 $2,591,066 $2,642,888 $2,695,746 $2,749,661 $2,804,654 $2,860,747 $2,917,962 $2,976,321$29,711,38012. Cash Position After RDA Repayment(10 plus 11)$6,184,063 $2,482,020 $4,434,460 $4,495,858 $3,647,767 $6,675,198 $4,898,379 $2,507,208 $289,164 -$2,222,312 -$5,325,487 -$8,768,445 $13,113,809GENERAL FUND FINANCIAL PROJECTIONSEXHIBIT 2 EXHIBIT 3 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 15, 2017 STAFF REPORT AGENDA TITLE: DISCUSS BUDGET VS ACTUAL REVENUE AND EXPENSE REPORT OPTIONS RECOMMENDATION Discuss budget vs actual revenue and expense report options. EXECUTIVE SUMMARY • The Financial Advisory Commission (FAC) requested a review of alternatives to reporting revenues and expenses for the General Fund. • Staff intends to start providing a quarterly report to the FAC and City Council for review and is seeking feedback on the format. BACKGROUND/ANALYSIS During the August 9, 2017 FAC meeting, Commissioners requested to review and discuss the current revenue and expenditure report. General Fund revenues are cyclical in nature and not generally uniform as expenditures typically are from month to month, however, a quarterly financial report could provide more details. Staff had previously committed to start providing a quarterly financial report starting in January 2018 and has provided a Quarterly Financial Report (Attachment 1) from the City of Lakeport for review and discussion. ALTERNATIVES This is a discussion item, no alternatives are recommended. Prepared by: Karla Campos, Finance Director Attachment: 1. City of Lakeport Quarterly Financial Report STUDY SESSION ITEM NO. 2 QUARTERLY FINANCIAL REPORT Finance Department 225 Park Street 707.263.5615, ext. 16 CITY OF LAKEPORT SECOND QUARTER, 2014-15 DECEMBER 31, 2014 GENERAL FUND FINANCIAL CONDITION. The City’s general fund is its primary source of discretionary resources for the provision of service deemed necessary and desirable by the citizens of Lakeport and the City Council. The general fund is holding well with a total fund balance of $3.05 million as of the December 31, 2014, of which $1.96 million is available for spending. The City Manager recommended using $580,126 of the general fund reserve to engage in one-time uses in the 2014-15 budget, which was later augmented to $644,037 to maintain funding capital expenditures with increased personnel costs. TOP 10 REVENUES. The City’s top ten revenue sources account for approximately 82% of total general fund income. Focusing on these sources can provide a useful understanding of the City’s revenue position. The bar graph to the left illustrates the performance of top ten revenues as compared to a year ago. Sales tax. The City collects sales tax from two sources: normal Bradley-Burns sales taxes - which are shared between City, county, and the state – and a ½ cent sales and use tax, commonly referred to as Measure I and devoted entirely to the City. Both tax sources are general taxes and can be used for any regular, general governmental purpose. Overall, sales taxes receipts (Bradley-Burns and Measure I) are up 18.3% from a year ago due in part to stronger retails sales in the City’s transportation sector. The declining price of gas, unfortunately, will have an adverse effect on this revenue source, yet to be realized. An additional bump was due to true-up allotments from the state as it winds down the triple flip of 2004. City management is pleased to present this quarterly financial report summarizing the City’s overall financial activity and position through December 31, 2014. This financial information is unaudited. For audited information, or to find greater detail, please refer to the City’s Comprehensive Annual Financial Report (CAFR), which is released by December 31 following the end of the fiscal year. ADJUSTED BUDGETS AND REVENUE ESTIMATES. The revenue projections and budget expenditures presented herein include budget adjustments approved by the City Council. General Fund Balance Budget YTD Actual Percent Revenues 4,502,500$ 1,858,896$ 41% Expenditures 5,412,981 2,163,699 40% Transfers in (out), net 266,444 43,522 16% Use of fund balance 644,037 - 0% Surplus (deficit)-$ (261,282)$ Total fund balance, beginning 3,313,489 Total fund balance, ending 3,052,207 Spendable fund balance, ending 1,964,729$ Fund balance as a percent of total 141% expenditures, including transfers $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 YTD 14-15 YTD 13-14 OVERVIEW GENERAL FUND 125 Years of pride, progress and service. GENERAL FUND FINANCIAL CONDITION TOP TEN REVENUES COMPARED FY 14-15 TO FY 13-14 ATTACHMENT 1 QUARTERLY FINANCIAL REPORT Finance Department 225 Park Street 707.263.5615, ext. 16 CITY OF LAKEPORT SECOND QUARTER, 2014-15 DECEMBER 31, 2014 Top Ten Revenues Budget YTD Actual Percent Sales tax - Bradley-Burns 1,053,492$ 525,873$ 49.9% Sales and use tax - Measure I 730,299 348,369 47.7% Property tax 453,400 245,081 54.1% Property tax in lieu of VLF 408,000 195,720 48.0% Property tax in lieu of sales tax 376,306 197,195 52.4% Grants and subventions 181,710 45,147 24.8% Franchise fees 193,194 47,170 24.4% Rents and leases 160,319 54,682 34.1% Business license tax 95,000 45,326 47.7% Permits 69,050 45,850 66.4% Total 3,720,770$ 1,750,414$ 47.0% Percent Top Ten Revenues Compared YTD 14-15 YTD 13-14 Change Sales tax - Bradley-Burns 525,873$ 445,953$ 17.9% Sales and use tax - Measure I 348,369 292,768 19.0% Property tax 245,081 266,593 -8.1% Property tax in lieu of VLF 195,720 195,781 0.0% Property tax in lieu of sales tax 197,195 155,747 26.6% Grants and subventions 45,147 90,657 -50.2% Franchise Fees 47,170 49,234 -4.2% Rents and Leases 54,682 57,248 -4.5% Business license tax 45,326 34,371 31.9% Permits 45,850 38,943 17.7% Total 1,750,414$ 1,627,295$ 7.6% Measure I collections were stronger than anticipated and up from last year for similar reasons, although Triple Flip adjustments do not apply to this revenue source. Sales tax generally, however, is coming in slightly lower than anticipated for this time of year, but we will monitor it closely and recommend adjustments to the budget later, if needed. Property tax. Receipts came in lower than anticipated as the county continues to process Prop 8 (1978) property value adjustments. Economically, the City experienced a surge in residential property sales during 2011 and 2012, driving home values upward, but that trend has cooled in recent months. This revenue source is down further compared to a year ago but is coming in stronger than anticipated in the budget, signaling stability in the housing market and nominal changes to the tax roll. Property tax in lieu of VLF (Vehicle License Fee). These are property tax shares allocated to cities and counties beginning in FY 04-05 as compensation for the state’s take of Vehicle License Fees (VLF). This revenue source typically follows regular property tax collections and is almost identical to last year, reflecting nominal changes to the property tax roll. Property tax in lieu of sales tax (Triple Flip). This is a mechanism used to repay the state fiscal recovery bonds pursuant to Prop 57 of 2004. Under the Triple Flip, the local sales and use tax rate is reduced from 1.00% to 0.75% with the 0.25% diverted to repay state fiscal recovery bonds. Cities and counties are reimbursed for the lost revenue from a shift of property tax revenue. The 26.6% increase is the result of final true-up processes by the state and County Auditor-Controller. Grants and subventions. The City receives several grants and subventions to fund public safety activities: COPS, RSTP, and Indian Gaming. The normal annual RSTP allocation is around $65,000 and has yet to be requested by the City. The amount to date is lower than last year due to the completion of the CHRP grant as well as timing differences in funds received. Franchise fees. This includes revenues from franchise fees paid by PG&E, MediaCom (Cable), and Lakeport Disposal. It is slightly lower this year than last due to timing differences in payments received. The underlying data suggests that it remains in line with budget estimates. Rents and leases. This is revenue collected from leasing properties to private parties and other funds/agencies, i.e. water, and sewer enterprises. This revenue source is lower than last year due to timing differences in payments received and an accounting correction. TOP TEN GENERAL FUND REVENUES BUDGET TO ACTUAL TOP TEN GENERAL FUND REVENUES COMPARED Business license tax. Businesses that operate within City limits are required to obtain a business license. A tax is assessed for the privilege of doing so, the proceeds of which are available for unrestricted use in the general fund. Receipts are up significantly from a year ago primarily due to timing differences of payments received. Permits. Fees collected from the issuance of building and planning permits are up from last year and exceeding budget estimates due to increased building and planning activity. QUARTERLY FINANCIAL REPORT Finance Department 225 Park Street 707.263.5615, ext. 16 CITY OF LAKEPORT SECOND QUARTER, 2014-15 DECEMBER 31, 2014 Expenditures by Department Budget YTD Actual Percent City Council 146,212$ 40,806$ 28% Administration 500,608 282,534 56% City Manager: Econ Dev 109,000 24,437 22% City Attorney 122,000 91,832 75% Finance 555,393 282,665 51% Planning 302,116 134,114 44% Building 237,246 89,162 38% Housing 505,434 120,863 24% Engineering and IT 6,913,618 1,239,710 18% Police 1,789,426 916,194 51% Public Works: Roads & Infrastructure 1,440,780 458,375 32% Parks, Building, Grounds 566,843 133,030 23% Westshore Pool 63,505 17,026 27% Water O&M 1,574,477 1,445,328 92% Sewer O&M 1,870,667 575,851 31% Total 16,697,325$ 5,851,928$ 35% Expenditures by Major Category Budget YTD Actual Percent Salaries and benefits Active employee 4,549,875$ 2,289,466$ 50% Retiree 388,380 385,534 99% Total 4,938,255 2,674,999 54% Operations Departmental 3,133,640 1,455,299 46% Non-departmental 870,222 215,963 25% Total 4,003,862 1,671,262 42% Loans/grants 438,360 160,594 37% Debt service 1,112,022 821,427 74% Capital improvements 8,581,299 1,992,647 23% Total 19,073,798$ 7,320,929$ 38% Departmental 16,697,325$ 5,851,928$ Non-departmental 2,376,473 1,469,001 Total 19,073,798$ 7,320,929$ 38% Reconciliation to Expenditures by Department EXPENDITURES BY DEPARTMENT CITY-WIDE – BUDGET TO ACTUAL EXPENDITURES BY MAJOR CATEGORY CITY-WIDE – BUDGET TO ACTUAL Departmental expenditures City-wide (i.e., general fund, special revenues funds, RDA Successor Agency, water and sewer) were 35% of budgeted appropriations. Non-departmental activity brought expenditures up to 38%. Non-departmental activity includes debt service, retiree health administration, and minor administrative expenses provided by third parties, including bank, merchant, and trustee fees. A large portion of the budget was the downtown improvement project - funded by unspent former redevelopment bond proceeds - as well as other capital projects, including those funded by USDA. The majority of construction on Main Street is expected to commence in the summer, and unspent bond proceeds will be carried over to next fiscal year to complete the project. City policy maintains budget control at the fund level. However, the Finance Department monitors expenditures at the object or account level (i.e., salaries and benefits, electricity, professional services, etc.) and reports that information monthly to all departments and the City Manager. As of December 31, 2014, departments are reporting expenditures in line with expected budgeted appropriations for this time of year with the following exceptions: City Attorney: Costs related to legal settlements were approved by the City Council but unbudgeted. Public Works, Water O&M Division: Capital costs associated with USDA projects are being managed by the Public Works Department and charged to this division. It was budgeted as the responsibility of the City Engineer. A budget adjustment will be proposed at mid-year to reflect this activity and provide appropriations moving forward. The City Manager meets with each department during the mid- year to review expenditures and potential budget adjustments. Adjustments made within any major category (e.g., salaries and benefits, operations, or capital outlay) typically are made by the City Manager upon request by a department head. Adjustments between those major categories, or net increases in appropriations to any particular fund or department require Council review and approval. DEPARTMENTAL EXPENDITURES DEPARTMENTAL REPORT NO. 1 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Honorable Chair and Financial Advisory Commissioners FROM: Rosemary Hallick, Financial Services Analyst DATE: November 15, 2017 SUBJECT: Second Quarter 2017 (April – June 2017) Sales Tax Update for the City of La Quinta The attached report was prepared by HdL Companies, the City’s sales tax consultant, as an update of sales tax receipts for second quarter sales from April to June 2017. Highlights • Generally all major business groups, except autos and transportation, have experienced an increase in sales in comparison to the second quarter of 2016. • City of La Quinta sales per capita were higher than both the state and county averages, which has been the case for all quarters except the third quarter (consisting of July –September) for all years since 2014. • General consumer goods (such as department stores) and restaurants/hotels made up 61% of sales tax revenue during this quarter. • La Quinta’s overall adjusted sales increase was 3.9%, which compares to Riverside County at 5.7%, Southern California at 3.4%, and the state at 3.2%. • Most categories of general consumer goods continue to see declines or zero growth as online shopping continues to shift tax receipts into the countywide allocation pools. • Allocation of sales tax continues to be based on the basic principles of location and ownership. County pools benefit if the sale is negotiated and the goods are shipped from out of state or if a fulfillment center is located in California but the inventory is not owned by the seller. Local jurisdictions benefit when the seller owns the inventory and it is delivered from inside California. The City continuously monitors local development, statewide economic conditions, international impacts on travel and trade, as well as significant shifts in sales to non- traditional sources (such as online purchases). Measure G Update • Measure G transaction taxes came in above our conservative estimates for the quarter. • General consumer goods (such as department stores) and restaurants/hotels made up 60% of transaction tax revenue during this quarter, a similar share to sales taxes. • Autos and transportation made up 15% of transaction tax revenue as opposed to only 9% of sales tax revenue. • A transaction tax, such as our Measure G, is based on the place of purchase. As an example, automobile transaction taxes go to the jurisdiction in which the buyer’s vehicle is registered, not the location of the dealership. • Our top 25 transactions tax producers predominately consisted of LA Quinta businesses; however there was activity from online retailers as well as several auto dealerships located outside of City limits. City staff will continue to monitor Measure G activity to establish baselines for future budgeting purposes. No updates were provided by the consultants at this time, as they are waiting until there are at least two quarters of collections before making projections for future revenue. Attachment 1: City of La Quinta Sales Tax Update ATTACHMENT 1 2016/17 GENERAL FUND YEAR-END BUDGET REPORT – CITY OF LA QUINTA               2016/17 General Fund Year-End Budget Report – City of La Quinta     GEM of the DESERT   FISCAL RESPONSIBILITY & TRANSPARENCY OVERVIEW Finance is pleased to present this annual financial report summarizing the City’s overall financial activity and position through June 30, 2017. The revenues and expenditures include budget adjustments and carryovers approved by the City Council. For 2016/17, the carryovers total $4,859,920 for Capital Improvement Projects (CIP) and $120,000 for General Fund (GF) expenditures, resulting in a net savings of $3,096,656. The Use of Fund Balance represents Council approved use of unassigned reserves; these funds were used for the SilverRock sheep fence and the acquisition of land on Eisenhower Drive for drainage improvements. GENERAL FUND FINANCIAL CONDITION The GF funds operating services and infrastructure investment. Overall, 2016/17 revenue was $1.3 million higher (3%) than anticipated after mid-year adjustments. Without the carryover expenses, expenditures were underbudget by $8 million; after carryovers, this decreased to $3 million. These savings replenish the unassigned fund balance (reserves). A General Fund summary of revenues and expenses can be found in Attachment 2. General Fund Financial Update General Fund Final Budget Actual % Revenues 42,183,600 43,544,086 103% Use of Fund Balance 3,055,606 2,723,617 89% Total Revenues 45,239,206 46,267,703 102% Expenditures 49,411,655 41,335,079 84% CIP Carryovers 4,859,920 GF Carryovers 120,000 Total Expenditures 49,411,655 46,314,999 94% 2016/17 GENERAL FUND YEAR-END BUDGET REPORT – CITY OF LA QUINTA  2     GENERAL FUND REVENUE VARIANCES Compared to 2015/16, revenues increased by $2 million or 5%. In 2016/17, tax revenue experienced the largest positive variance from the final budget. This is attributed to property tax, Measure G sales tax, and transient occupancy tax (TOT). A detail listing of revenues can be found in Attachment 3. PROPERTY TAX In 2014/15 the county adjusted the City’s no-low distribution, which increased the no-low allocation and its unpredictability thereafter. Revenue from the Redevelopment Property Tax Trust Fund increases each year as the former Redevelopment Agencies’ dissolution (City and County Agencies) continues and debts are retired. This reallocates taxes to cities, counties, schools, and special districts. The City has contracted with HdL for property tax analysis and will reviewing of all property tax revenue in preparation for the 2018/19 budget. SALES TAX As of April 1, 2017, the City collects sales tax from two sources: the normal Bradley-Burns sales taxes – which are shared between City (1%), County (.25%), and the State (6%) – and the 1% sales and use tax, commonly referred to as Measure G, which is allocated exclusively to the City. An additional .5% is collected for County transportation funding. The 2016/17 sales tax revenue increase is attributed to Measure G. Actual revenues exceeded budgeted projections by $462,000. The Coachella Valley hosts numerous events in neighboring cities, which also boosted sales tax revenue. After a year of Measure G implementation, the City will ascertain the cyclical nature of this new revenue source. TRANSIENT OCCUPANCY TAX (TOT) Combined TOT revenue was $8.9 million or $1.6 million over budget. Hotels and short-term vacation rentals both experienced an increase in revenue (in part to events hosted in Valley cities). INTERGOVERNMENTAL The largest revenue variance is due to lower fire service costs and therefore lower fire service property tax revenue. Riverside County deposits excess fire service property tax revenue in a trust account, which is reserved for future City fire service expenses. In addition, the City anticipates receiving County Service Area 152 revenue for 2016/17 in 2017/18. Revenue was not recognized due to a lag in the County reimbursement request for expenses incurred for reducing storm water pollution. CHARGES FOR SERVICES This revenue category is comprised of 32 different items including development and community service fees. Building plan check and public works development plan check fees experienced the largest negative variances from budget. Many large projects have secured their entitlements but this has not yet translated into building permits. General Fund Revenues Final Budget Actual Variance Tax Revenue 27,741,600 31,001,941 3,260,341 Licenses & Permits 1,364,400 1,118,912 (245,488) Intergovernmental 10,612,200 9,544,110 (1,068,090) Charges for Services 1,366,400 1,021,296 (345,104) Fines, Forfeitures & Abatements 253,400 348,345 94,945 Use of Money & Property 516,600 360,068 (156,532) Miscellaneous 138,600 149,911 11,311 Transfers In 190,400 9,503 (180,897) Total Revenues 42,183,600 43,554,086 1,370,486 2016/17 GENERAL FUND YEAR-END BUDGET REPORT – CITY OF LA QUINTA  3       GENERAL FUND EXPENDITURE VARIANCES General Fund expenditures, before carryovers, totaled $41,335,079 (84% of budget expended). CIP carryovers totaled $4.8 million and GF carryovers were $120,000. Total expenditures (including carryovers) were $46.3 million (94% of budget), leaving total expenditures $3,096,656 under the approved budget. For 2016/17, all departments were under budget except for Streets ($10,700), which was due to expenditures not qualifying under the restricted Gas Tax Fund. NOTABLE SAVINGS The City Attorney budget realized savings of $95,113. Savings were recognized because of reimbursement agreements and prudent use of retainer hours. Police and Fire contract services were lower than anticipated by $381,036 and $774,710, respectively. Police savings are attributed to vacancies in the special enforcement team and motor officer positions, as well as prudent management of overtime. The Fire service contract budgeted a full- year of labor increases, which were subsequently phased in by the State, resulting in savings for half the year. Prudent oversight of contract services and staff completing projects internally such as updating the batting cages at the Sports Complex realized savings for Parks Maintenance of $9,699. Prudent contract management and in-house collaboration of Marketing and Community Relations yielded savings of $74,202. Building, Public Works Development Services, and Engineering Services realized a combined savings of $937,612, primarily for contract services. This correlates directly with the decrease in revenue for building plan check and public works development plan check fees. Overall Salaries and Benefits realized savings of $676,848. This was due to vacant positions, staff turnover, and using current staff to temporarily assist while vacant positions were filled. The greatest savings were realized in Centralized Services ($5,090,613); however, as noted earlier $4.8 million is contractually obligated to multi-year CIP projects. A summary of expenses by department and category is found in Attachment 4.   General Fund Expenditures Final Budget Actual Variance City Council 293,400 272,268 (21,132) City Manager 849,000 845,572 (3,428) City Attorney 506,000 410,887 (95,113) Human Resources 417,100 407,779 (9,321) City Clerk 577,600 528,440 (49,160) Finance 1,145,900 1,018,009 (127,891) Centralized Services 11,264,049 6,173,386 (5,090,663) Police 14,832,400 14,451,364 (381,036) Fire 6,591,300 5,816,590 (774,710) Community Resources Admin. 836,300 783,382 (52,918) Wellness Center Operations 606,700 522,039 (84,661) Recreational Programs & Events 135,700 129,865 (5,835) Parks Maintenance 1,718,500 1,708,801 (9,699) Marketing & Community Relations 905,100 830,898 (74,202) Public Buildings 1,413,100 1,376,355 (36,745) Design & Development Admin. 1,061,400 1,003,341 (58,059) Planning 594,300 504,011 (90,289) Building 909,100 695,620 (213,480) Code Compliance/Animal Control 1,017,600 911,979 (105,621) The Hub 717,800 638,565 (79,235) Public Works Dev. Services 623,100 436,843 (186,257) Streets - 10,755 10,755 Engineering Services 2,396,206 1,858,331 (537,875) Total Expenditures 49,411,655 41,335,079 (8,076,576) Capital Improvement Carryovers 4,859,920 General Fund Carryovers 120,000 Total Expenditures After Carryovers 49,411,655 46,314,999 (3,096,656) 2016/17 Final Budget 2016/17 Actuals Variance w/ Final Budget GENERAL FUND OVERVIEW REVENUE SUMMARY Tax Revenues 27,741,600.00 31,001,940.60 3,260,340.60 Licenses & Permits 1,364,400.00 1,118,912.10 (245,487.90) Intergovernmental 10,612,200.00 9,544,110.43 (1,068,089.57) Charges for Services 1,366,400.00 1,021,296.11 (345,103.89) Fines, Forfeitures & Abatements 253,400.00 348,344.70 94,944.70 Use of Money & Property 516,600.00 360,067.95 (156,532.05) Miscellaneous 138,600.00 149,910.74 11,310.74 Transfers In 190,400.00 9,502.95 (180,897.05) 42,183,600.00 43,554,085.58 1,370,485.58 EXPENSE SUMMARY Salaries and Benefits 8,112,600.00 7,435,751.88 (676,848.12) Contract Services 26,100,006.00 23,882,328.95 (2,217,677.05) Maintenance & Operations 2,454,400.00 2,274,236.30 (180,163.70) Utilities 416,300.00 492,227.18 75,927.18 Capital Expenses 2,305,500.00 2,280,802.17 (24,697.83) Internal Service Charges 1,941,100.00 1,941,100.00 0.00 Transfers Out 8,081,748.96 3,028,632.48 (5,053,116.48) 49,411,654.96 41,335,078.96 (8,076,576.00) BUDGET (SHORTFALL)/SURPLUS (7,228,054.96)2,219,006.62 9,447,061.58 27,741,600.00 31,001,940.60 3,260,340.60 1,364,400.00 1,118,912.10 (245,487.90) 10,612,200.00 9,544,110.43 (1,068,089.57) 1,366,400.00 1,021,296.11 (345,103.89) 253,400.00 348,344.70 94,944.70 516,600.00 360,067.95 (156,532.05) 138,600.00 149,910.74 11,310.74 190,400.00 9,502.95 (180,897.05) 42,183,600.00 43,554,085.58 1,370,485.58 8,112,600.00 7,435,751.88 (676,848.12) 26,100,006.00 23,882,328.95 (2,217,677.05) 2,454,400.00 2,274,236.30 (180,163.70) 416,300.00 492,227.18 75,927.18 2,305,500.00 2,280,802.17 (24,697.83) 1,941,100.00 1,941,100.00 0.00 8,081,748.96 3,028,632.48 (5,053,116.48) 49,411,654.96 41,335,078.96 (8,076,576.00) (7,228,054.96)2,219,006.62 9,447,061.58 Attachment 2 2015/16 Actual Revenues 2016/17 Original Budget 2016/17 Final Budget 2016/17 AcƟvity Variance w/ Final Budget 101 - GENERAL FUND 0000 - Undesignated 310 - Tax Revenues 4,141,871.70 2,178,500.00 2,178,500.00 2,186,077.61 7,577.61101-0000-40310 Property Tax Revenue 4,656,424.13 4,332,700.00 4,332,700.00 4,969,009.81 636,309.81101-0000-40311 No-Low City Property Tax 0.00 1,900,000.00 1,900,000.00 2,082,693.73 182,693.73101-0000-40315 RPTTF Pass Through 7,891,651.99 8,604,000.00 8,604,000.00 8,597,655.49 (6,344.51)101-0000-41320 State Sales Tax 502,623.65 0.00 0.00 0.00 0.00101-0000-41325 Sales Tax Reimbursement 0.00 0.00 1,000,000.00 1,462,649.75 462,649.75101-0000-41326 Measure G Sales Tax 516,963.74 531,000.00 531,000.00 585,333.35 54,333.35101-0000-41327 Document Transfer Tax 7,442,169.08 5,345,100.00 5,345,100.00 6,426,594.01 1,081,494.01101-0000-41400 TOT - Hotels 0.00 1,395,300.00 1,895,300.00 2,383,229.26 487,929.26101-0000-41401 TOT - Short Term Vac. Rentals 0.00 0.00 0.00 123,360.49 123,360.49101-0000-41402 TOT - Bed and Breakfast 393,575.33 365,000.00 365,000.00 420,684.94 55,684.94101-0000-41410 TOT - Mitigation Measures 353,746.72 644,000.00 644,000.00 663,060.76 19,060.76101-0000-41505 Franchise Taxes - Burrtec 369,087.78 0.00 0.00 38,801.62 38,801.62101-0000-41506 Burrtec AB 939 Fee 130,290.94 149,000.00 149,000.00 120,634.61 (28,365.39)101-0000-41508 Southern California Gas 591,137.53 600,000.00 600,000.00 602,052.47 2,052.47101-0000-41509 Cable Television 355,674.36 197,000.00 197,000.00 340,102.70 143,102.70101-0000-41510 Communications Franchise Fees 310 - Tax Revenues Totals:27,345,216.95 26,241,600.00 27,741,600.00 31,001,940.60 3,260,340.60 320 - Licenses & Permits 20,299.80 22,500.00 62,500.00 80,102.00 17,602.00101-0000-41415 STVR Registration Fee 334,465.17 307,000.00 307,000.00 358,943.44 51,943.44101-0000-41600 Business Licenses 0.00 0.00 0.00 1,368.00 1,368.00101-0000-41601 Cannabis Delivery License 0.00 1,000.00 1,000.00 1,095.00 95.00101-0000-41610 Film Permits 101,259.66 138,000.00 188,000.00 104,776.28 (83,223.72)101-0000-42400 Building Permits 52,712.21 86,300.00 86,300.00 51,407.11 (34,892.89)101-0000-42401 Plumbing Permits 75,331.90 101,200.00 101,200.00 80,867.16 (20,332.84)101-0000-42402 Mechanical Permits 55,560.54 74,800.00 74,800.00 47,294.38 (27,505.62)101-0000-42403 Electrical Permits 190,944.50 152,000.00 152,000.00 151,603.31 (396.69)101-0000-42404 Miscellaneous Permits 10,950.00 12,000.00 12,000.00 10,090.00 (1,910.00)101-0000-42405 Garage Sale Permits 220.00 10,000.00 10,000.00 160.00 (9,840.00)101-0000-42406 Golf Cart Permits 8,871.75 5,800.00 5,800.00 8,675.67 2,875.67101-0000-42408 Grading Permits 10.00 0.00 0.00 0.00 0.00101-0000-42409 Animal Licenses 30,307.00 6,000.00 6,000.00 3,354.00 (2,646.00)101-0000-42410 Driveway Permits 2,000.00 100.00 100.00 660.00 560.00101-0000-42414 Massage Permits 3,360.00 2,000.00 2,000.00 1,300.00 (700.00)101-0000-42430 Transportation Permits 23,143.75 16,100.00 16,100.00 24,914.00 8,814.00101-0000-42431 Conditional Use Permits 3,000.00 2,800.00 2,800.00 1,600.00 (1,200.00)101-0000-42433 Minor Use Permit 14,975.00 15,200.00 15,200.00 20,546.00 5,346.00101-0000-42434 Sign Permit 26,722.00 67,900.00 67,900.00 64,278.00 (3,622.00)101-0000-42435 Site Development Permit 5,740.00 11,600.00 11,600.00 14,589.00 2,989.00101-0000-42436 Final Landscaping Plans 1,885.00 0.00 0.00 1,394.25 1,394.25101-0000-42437 Development Agreement 12,840.00 40,100.00 40,100.00 8,757.50 (31,342.50)101-0000-42439 Temporary Use Permit 187,220.00 200,000.00 200,000.00 81,137.00 (118,863.00)101-0000-43632 Public Works Permits 0.00 0.00 2,000.00 0.00 (2,000.00)101-0000-43638 NPDES Inspections 320 - Licenses & Permits Totals:1,161,818.28 1,272,400.00 1,364,400.00 1,118,912.10 (245,487.90) 330 - Intergovernmental 3,651,548.63 3,635,500.00 3,635,500.00 3,813,213.14 177,713.14101-0000-41800 Motor Vehicle In Lieu 5,349,899.94 6,531,300.00 6,571,300.00 5,480,897.29 (1,090,402.71)101-0000-42500 Fire Service Credit 1.45 0.00 0.00 0.00 0.00101-0000-43100 FEMA 238,587.96 238,600.00 238,600.00 0.00 (238,600.00)101-0000-43633 CSA 152 Assessments 0.00 16,800.00 16,800.00 0.00 (16,800.00)101-0000-43634 CVWD 300,000.00 150,000.00 150,000.00 250,000.00 100,000.00101-0000-43650 Contributions from Other Agencies 330 - Intergovernmental Totals:9,540,037.98 10,572,200.00 10,612,200.00 9,544,110.43 (1,068,089.57) 340 - Charges for Services 58,533.82 45,000.00 45,000.00 57,857.54 12,857.54101-0000-42200 Leisure Enrichment 6,496.96 6,000.00 6,000.00 8,585.85 2,585.85101-0000-42202 Gift Shop 0.00 100.00 100.00 0.00 (100.00)101-0000-42208 Coffee/Cards-Senior Center 53,369.36 45,500.00 45,500.00 45,079.70 (420.30)101-0000-42210 Youth Sports 1,067.00 5,000.00 5,000.00 4,589.28 (410.72)101-0000-42211 Adult Sports 4,141,871.70 2,178,500.00 2,178,500.00 2,186,077.61 7,577.61 4,656,424.13 4,332,700.00 4,332,700.00 4,969,009.81 636,309.81 0.00 1,900,000.00 1,900,000.00 2,082,693.73 182,693.73 7,891,651.99 8,604,000.00 8,604,000.00 8,597,655.49 (6,344.51) 502,623.65 0.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 1,462,649.75 462,649.75 516,963.74 531,000.00 531,000.00 585,333.35 54,333.35 7,442,169.08 5,345,100.00 5,345,100.00 6,426,594.01 1,081,494.01 0.00 1,395,300.00 1,895,300.00 2,383,229.26 487,929.26 0.00 0.00 0.00 123,360.49 123,360.49 393,575.33 365,000.00 365,000.00 420,684.94 55,684.94 353,746.72 644,000.00 644,000.00 663,060.76 19,060.76 369,087.78 0.00 0.00 38,801.62 38,801.62 130,290.94 149,000.00 149,000.00 120,634.61 (28,365.39) 591,137.53 600,000.00 600,000.00 602,052.47 2,052.47 355,674.36 197,000.00 197,000.00 340,102.70 143,102.70 27,345,216.95 26,241,600.00 27,741,600.00 31,001,940.60 3,260,340.60 20,299.80 22,500.00 62,500.00 80,102.00 17,602.00 334,465.17 307,000.00 307,000.00 358,943.44 51,943.44 0.00 0.00 0.00 1,368.00 1,368.00 0.00 1,000.00 1,000.00 1,095.00 95.00 101,259.66 138,000.00 188,000.00 104,776.28 (83,223.72) 52,712.21 86,300.00 86,300.00 51,407.11 (34,892.89) 75,331.90 101,200.00 101,200.00 80,867.16 (20,332.84) 55,560.54 74,800.00 74,800.00 47,294.38 (27,505.62) 190,944.50 152,000.00 152,000.00 151,603.31 (396.69) 10,950.00 12,000.00 12,000.00 10,090.00 (1,910.00) 220.00 10,000.00 10,000.00 160.00 (9,840.00) 8,871.75 5,800.00 5,800.00 8,675.67 2,875.67 10.00 0.00 0.00 0.00 0.00 30,307.00 6,000.00 6,000.00 3,354.00 (2,646.00) 2,000.00 100.00 100.00 660.00 560.00 3,360.00 2,000.00 2,000.00 1,300.00 (700.00) 23,143.75 16,100.00 16,100.00 24,914.00 8,814.00 3,000.00 2,800.00 2,800.00 1,600.00 (1,200.00) 14,975.00 15,200.00 15,200.00 20,546.00 5,346.00 26,722.00 67,900.00 67,900.00 64,278.00 (3,622.00) 5,740.00 11,600.00 11,600.00 14,589.00 2,989.00 1,885.00 0.00 0.00 1,394.25 1,394.25 12,840.00 40,100.00 40,100.00 8,757.50 (31,342.50) 187,220.00 200,000.00 200,000.00 81,137.00 (118,863.00) 0.00 0.00 2,000.00 0.00 (2,000.00) 1,161,818.28 1,272,400.00 1,364,400.00 1,118,912.10 (245,487.90) 3,651,548.63 3,635,500.00 3,635,500.00 3,813,213.14 177,713.14 5,349,899.94 6,531,300.00 6,571,300.00 5,480,897.29 (1,090,402.71) 1.45 0.00 0.00 0.00 0.00 238,587.96 238,600.00 238,600.00 0.00 (238,600.00) 0.00 16,800.00 16,800.00 0.00 (16,800.00) 300,000.00 150,000.00 150,000.00 250,000.00 100,000.00 9,540,037.98 10,572,200.00 10,612,200.00 9,544,110.43 (1,068,089.57) 58,533.82 45,000.00 45,000.00 57,857.54 12,857.54 6,496.96 6,000.00 6,000.00 8,585.85 2,585.85 0.00 100.00 100.00 0.00 (100.00) 53,369.36 45,500.00 45,500.00 45,079.70 (420.30) 1,067.00 5,000.00 5,000.00 4,589.28 (410.72) General Fund Revenue Comparison Attachment 2 2015/16 Actual Revenues 2016/17 Original Budget 2016/17 Final Budget 2016/17 AcƟvity Variance w/ Final Budget 56,595.26 56,000.00 51,000.00 41,902.00 (9,098.00)101-0000-42212 Facility Rental 0.00 0.00 0.00 1,086.30 1,086.30101-0000-42213 Special Event 53,266.50 45,000.00 40,000.00 54,625.85 14,625.85101-0000-42214 Wellness Center Leisure Enrichment 0.00 34,100.00 34,100.00 0.00 (34,100.00)101-0000-42215 City Facilities Rental Fee 2,112.50 0.00 0.00 2,152.00 2,152.00101-0000-42216 Senior Center Special Events 108,096.00 75,000.00 75,000.00 125,867.51 50,867.51101-0000-42218 Wellness Center Memberships 673.04 100.00 100.00 (38.90)(138.90)101-0000-42300 Cash Over/Short 171,085.42 25,000.00 25,000.00 33,220.09 8,220.09101-0000-42301 Miscellaneous Revenue 480.00 200.00 200.00 350.00 150.00101-0000-42303 NSF Charges 5,656.00 0.00 0.00 8,484.00 8,484.00101-0000-42411 Village Use Permit 2,030.00 2,000.00 2,000.00 1,796.00 (204.00)101-0000-42412 Minor Adjustment 22,663.00 11,300.00 11,300.00 13,338.00 2,038.00101-0000-42415 Tentative Tract Map 1,450.00 3,800.00 3,800.00 2,100.00 (1,700.00)101-0000-42417 Modification by Applicant 3,349.50 3,200.00 3,200.00 1,500.00 (1,700.00)101-0000-42440 Appeals - Planning Commission 200.00 3,200.00 3,200.00 0.00 (3,200.00)101-0000-42441 Planning Compliance Review 17,590.00 18,700.00 18,700.00 4,068.00 (14,632.00)101-0000-42443 Zone Change 8,124.00 3,000.00 3,000.00 5,629.00 2,629.00101-0000-42445 Environmental Assessment 6,236.00 12,500.00 12,500.00 0.00 (12,500.00)101-0000-42446 General Plan Amendment 4,725.00 5,000.00 5,000.00 4,480.00 (520.00)101-0000-42447 Home Occupations 15,218.75 13,900.00 13,900.00 12,333.00 (1,567.00)101-0000-42448 Parcel Map 6,381.00 0.00 0.00 13,310.30 13,310.30101-0000-42451 Specific Plan 0.00 1,600.00 1,600.00 0.00 (1,600.00)101-0000-42453 Zoning Letters 447,152.48 460,000.00 556,000.00 438,638.13 (117,361.87)101-0000-42600 Building Plan Check Fees 305.18 300.00 300.00 0.00 (300.00)101-0000-42610 SMIP Fees 384.10 800.00 800.00 181.80 (618.20)101-0000-42615 CBSC Administrative Fees 278,950.00 392,100.00 402,100.00 139,392.83 (262,707.17)101-0000-42810 Public Works Dev. Plan Check Fee 1,022.52 2,000.00 2,000.00 767.83 (1,232.17)101-0000-43631 CVMSHCP Admin Fee 340 - Charges for Services Totals:1,333,213.39 1,270,400.00 1,366,400.00 1,021,296.11 (345,103.89) 350 - Fines, Forfeitures & Abatements 21,661.99 18,000.00 18,000.00 17,334.00 (666.00)101-0000-42700 Administrative Citations 9,237.80 2,000.00 2,000.00 37,849.13 35,849.13101-0000-42701 Lot Abatement 4,713.61 15,000.00 15,000.00 19,779.55 4,779.55101-0000-42702 Vehicle Abatement 73,831.00 50,000.00 65,000.00 86,997.00 21,997.00101-0000-42703 Vehicle Impound Fee 104,632.52 83,900.00 99,900.00 123,257.44 23,357.44101-0000-42705 Motor Vehicle Code Fines 45,377.00 30,000.00 40,000.00 46,086.02 6,086.02101-0000-42706 Parking Violations 16,879.16 7,000.00 7,000.00 10,064.56 3,064.56101-0000-42707 Misc Fines 6,742.00 6,500.00 6,500.00 6,977.00 477.00101-0000-42708 Graffiti Removal 350 - Fines, Forfeitures & Abatements Totals:283,075.08 212,400.00 253,400.00 348,344.70 94,944.70 360 - Use of Money & Property 605,186.47 210,000.00 210,000.00 143,436.65 (66,563.35)101-0000-41900 Allocated Interest (375.00)0.00 0.00 (8,850.00)(8,850.00)101-0000-41910 Gain or Loss 174,415.61 62,000.00 62,000.00 112,476.96 50,476.96101-0000-41915 Non-Allocated Interest 146,700.00 146,700.00 146,700.00 9,600.00 (137,100.00)101-0000-42111 Rental Income 102,373.14 97,900.00 97,900.00 103,404.34 5,504.34101-0000-42120 Lease Revenue 360 - Use of Money & Property Totals:1,028,300.22 516,600.00 516,600.00 360,067.95 (156,532.05) 370 - Miscellaneous 0.00 8,000.00 0.00 0.00 0.00101-0000-35110 AMR Compliance 14,650.48 0.00 14,000.00 17,411.69 3,411.69101-0000-41504 AMR Compliance 126,233.19 102,000.00 102,000.00 50,837.50 (51,162.50)101-0000-41507 Burrtec Admin Cost Reimbursement 0.00 0.00 0.00 500.00 500.00101-0000-41920 Memorial Tree Revenue 0.00 1,000.00 1,000.00 0.00 (1,000.00)101-0000-41925 AD Surplus 525,189.24 10,000.00 10,000.00 948.62 (9,051.38)101-0000-42000 Insurance Recoveries 0.00 9,000.00 9,000.00 0.00 (9,000.00)101-0000-42100 Advertising Co-Op Revenue 2,863.60 2,000.00 2,000.00 4,109.10 2,109.10101-0000-42130 SB 1186 Revenue 69.40 400.00 400.00 147.80 (252.20)101-0000-42140 Sales of Publications & Materials 200.00 200.00 200.00 0.00 (200.00)101-0000-42204 Donations - Senior Center 31,334.89 0.00 0.00 69,991.43 69,991.43101-0000-42305 Miscellaneous Reimbursements 1,031.87 0.00 0.00 6,004.35 6,004.35101-0000-43505 Credit Card Fee Revenue 0.00 0.00 0.00 (39.75)(39.75)101-0000-45000 Sale of Other Assets 370 - Miscellaneous Totals:701,572.67 132,600.00 138,600.00 149,910.74 11,310.74 56,595.26 56,000.00 51,000.00 41,902.00 (9,098.00) 0.00 0.00 0.00 1,086.30 1,086.30 53,266.50 45,000.00 40,000.00 54,625.85 14,625.85 0.00 34,100.00 34,100.00 0.00 (34,100.00) 2,112.50 0.00 0.00 2,152.00 2,152.00 108,096.00 75,000.00 75,000.00 125,867.51 50,867.51 673.04 100.00 100.00 (38.90)(138.90) 171,085.42 25,000.00 25,000.00 33,220.09 8,220.09 480.00 200.00 200.00 350.00 150.00 5,656.00 0.00 0.00 8,484.00 8,484.00 2,030.00 2,000.00 2,000.00 1,796.00 (204.00) 22,663.00 11,300.00 11,300.00 13,338.00 2,038.00 1,450.00 3,800.00 3,800.00 2,100.00 (1,700.00) 3,349.50 3,200.00 3,200.00 1,500.00 (1,700.00) 200.00 3,200.00 3,200.00 0.00 (3,200.00) 17,590.00 18,700.00 18,700.00 4,068.00 (14,632.00) 8,124.00 3,000.00 3,000.00 5,629.00 2,629.00 6,236.00 12,500.00 12,500.00 0.00 (12,500.00) 4,725.00 5,000.00 5,000.00 4,480.00 (520.00) 15,218.75 13,900.00 13,900.00 12,333.00 (1,567.00) 6,381.00 0.00 0.00 13,310.30 13,310.30 0.00 1,600.00 1,600.00 0.00 (1,600.00) 447,152.48 460,000.00 556,000.00 438,638.13 (117,361.87) 305.18 300.00 300.00 0.00 (300.00) 384.10 800.00 800.00 181.80 (618.20) 278,950.00 392,100.00 402,100.00 139,392.83 (262,707.17) 1,022.52 2,000.00 2,000.00 767.83 (1,232.17) 1,333,213.39 1,270,400.00 1,366,400.00 1,021,296.11 (345,103.89) 21,661.99 18,000.00 18,000.00 17,334.00 (666.00) 9,237.80 2,000.00 2,000.00 37,849.13 35,849.13 4,713.61 15,000.00 15,000.00 19,779.55 4,779.55 73,831.00 50,000.00 65,000.00 86,997.00 21,997.00 104,632.52 83,900.00 99,900.00 123,257.44 23,357.44 45,377.00 30,000.00 40,000.00 46,086.02 6,086.02 16,879.16 7,000.00 7,000.00 10,064.56 3,064.56 6,742.00 6,500.00 6,500.00 6,977.00 477.00 283,075.08 212,400.00 253,400.00 348,344.70 94,944.70 605,186.47 210,000.00 210,000.00 143,436.65 (66,563.35) (375.00)0.00 0.00 (8,850.00)(8,850.00) 174,415.61 62,000.00 62,000.00 112,476.96 50,476.96 146,700.00 146,700.00 146,700.00 9,600.00 (137,100.00) 102,373.14 97,900.00 97,900.00 103,404.34 5,504.34 1,028,300.22 516,600.00 516,600.00 360,067.95 (156,532.05) 0.00 8,000.00 0.00 0.00 0.00 14,650.48 0.00 14,000.00 17,411.69 3,411.69 126,233.19 102,000.00 102,000.00 50,837.50 (51,162.50) 0.00 0.00 0.00 500.00 500.00 0.00 1,000.00 1,000.00 0.00 (1,000.00) 525,189.24 10,000.00 10,000.00 948.62 (9,051.38) 0.00 9,000.00 9,000.00 0.00 (9,000.00) 2,863.60 2,000.00 2,000.00 4,109.10 2,109.10 69.40 400.00 400.00 147.80 (252.20) 200.00 200.00 200.00 0.00 (200.00) 31,334.89 0.00 0.00 69,991.43 69,991.43 1,031.87 0.00 0.00 6,004.35 6,004.35 0.00 0.00 0.00 (39.75)(39.75) 701,572.67 132,600.00 138,600.00 149,910.74 11,310.74 General Fund Revenue Comparison Attachment 2 2015/16 Actual Revenues 2016/17 Original Budget 2016/17 Final Budget 2016/17 AcƟvity Variance w/ Final Budget 380 - Transfers In 27,418.75 190,400.00 190,400.00 9,502.95 (180,897.05)101-0000-49500 Transfers In 380 - Transfers In Totals:27,418.75 190,400.00 190,400.00 9,502.95 (180,897.05) 0000 - Undesignated Totals:41,420,653.32 40,408,600.00 42,183,600.00 43,554,085.58 1,370,485.58 101 - GENERAL FUND Totals:41,420,653.32 40,408,600.00 42,183,600.00 43,554,085.58 1,370,485.58 27,418.75 190,400.00 190,400.00 9,502.95 (180,897.05) 27,418.75 190,400.00 190,400.00 9,502.95 (180,897.05) 41,420,653.32 40,408,600.00 42,183,600.00 43,554,085.58 1,370,485.58 41,420,653.32 40,408,600.00 42,183,600.00 43,554,085.58 1,370,485.58 General Fund Revenue Comparison Attachment 2 2015/16 Actual Expenses 2016/17 Original Budget 2016/17 Final Budget 2016/17 Actual Expenses Variance w/ Final Budget 1001 - City Council 271,383.88 288,300.00 293,400.00 272,268.06 (21,131.94) Salaries and Benefits 258,837.97 265,000.00 270,100.00 245,309.03 (24,790.97) Maintenance & Operations 12,545.91 23,300.00 23,300.00 26,959.03 3,659.03 1002 - City Manager 1,105,930.02 815,400.00 849,000.00 845,572.30 (3,427.70) Salaries and Benefits 739,969.94 471,000.00 484,600.00 507,337.29 22,737.29 Contract Services 204,840.96 222,900.00 242,900.00 225,658.68 (17,241.32) Maintenance & Operations 114,127.12 90,100.00 90,100.00 81,176.33 (8,923.67) Internal Service Charges 46,992.00 31,400.00 31,400.00 31,400.00 0.00 1003 - City Attorney 419,119.01 416,000.00 506,000.00 410,886.97 (95,113.03) Contract Services 419,119.01 416,000.00 506,000.00 410,886.97 (95,113.03) 1004 - Human Resources 302,452.37 385,100.00 417,100.00 407,779.18 (9,320.82) Salaries and Benefits 230,643.02 246,100.00 248,100.00 236,680.86 (11,419.14) Contract Services 31,015.83 69,100.00 69,100.00 96,965.02 27,865.02 Maintenance & Operations 25,097.52 51,100.00 81,100.00 55,333.30 (25,766.70) Internal Service Charges 15,696.00 18,800.00 18,800.00 18,800.00 0.00 1005 - City Clerk 511,290.53 568,800.00 577,600.00 528,439.58 (49,160.42) Salaries and Benefits 418,043.60 420,600.00 417,400.00 365,570.45 (51,829.55) Contract Services 47,045.14 105,100.00 117,100.00 121,051.57 3,951.57 Maintenance & Operations 7,897.79 12,600.00 12,600.00 11,317.56 (1,282.44) Internal Service Charges 38,304.00 30,500.00 30,500.00 30,500.00 0.00 1006 - Finance 951,178.92 1,094,500.00 1,145,900.00 1,018,008.84 (127,891.16) Salaries and Benefits 731,218.27 804,600.00 811,700.00 684,806.55 (126,893.45) Contract Services 142,273.96 127,700.00 172,000.00 163,073.74 (8,926.26) Maintenance & Operations 13,786.69 15,300.00 15,300.00 23,228.55 7,928.55 Internal Service Charges 63,900.00 146,900.00 146,900.00 146,900.00 0.00 1007 - Central Services 4,542,802.03 4,654,900.00 11,264,048.96 6,173,386.27 (5,090,662.69) Salaries and Benefits 109,543.58 340,000.00 217,700.00 168,954.95 (48,745.05) Maintenance & Operations 503,216.66 308,600.00 379,600.00 382,755.46 3,155.46 Utilities 55,999.06 0.00 0.00 6,367.35 6,367.35 Capital Expenses 0.00 0.00 2,253,000.00 2,254,676.03 1,676.03 Internal Service Charges 345,295.92 332,000.00 332,000.00 332,000.00 0.00 Transfers Out 3,528,746.81 3,674,300.00 8,081,748.96 3,028,632.48 (5,053,116.48) 2001 - Police 14,085,960.09 14,670,400.00 14,832,400.00 14,451,363.86 (381,036.14) Contract Services 14,037,475.37 14,631,300.00 14,793,300.00 14,417,358.37 (375,941.63) Maintenance & Operations 2,377.88 2,500.00 2,500.00 1,401.40 (1,098.60) Utilities 6,662.14 6,500.00 6,500.00 2,504.09 (3,995.91) Capital Expenses 4,440.70 0.00 0.00 0.00 0.00 Internal Service Charges 35,004.00 30,100.00 30,100.00 30,100.00 0.00 2002 - Fire 5,405,679.94 6,531,300.00 6,591,300.00 5,816,590.43 (774,709.57) Contract Services 5,227,265.50 6,340,900.00 6,390,900.00 5,643,879.97 (747,020.03) Maintenance & Operations 71,786.84 69,100.00 79,100.00 64,526.13 (14,573.87) Utilities 37,472.81 54,800.00 54,800.00 52,804.50 (1,995.50) Capital Expenses 19,850.75 14,500.00 14,500.00 3,379.83 (11,120.17) Internal Service Charges 49,304.04 52,000.00 52,000.00 52,000.00 0.00 3001 - Community Resources Administration 974,951.46 832,200.00 836,300.00 783,381.65 (52,918.35) Salaries and Benefits 478,225.72 464,400.00 468,500.00 469,592.03 1,092.03 Contract Services 64,770.75 60,000.00 60,000.00 48,360.00 (11,640.00) Maintenance & Operations 272,449.06 232,800.00 232,800.00 190,429.62 (42,370.38) Capital Expenses 122,905.93 0.00 0.00 0.00 0.00 Internal Service Charges 36,600.00 75,000.00 75,000.00 75,000.00 0.00 3002 - Wellness Center Operations 472,612.68 612,600.00 606,700.00 522,038.55 (84,661.45) Salaries and Benefits 290,955.54 440,400.00 434,500.00 361,513.86 (72,986.14) Contract Services 42,955.62 87,300.00 87,300.00 88,593.37 1,293.37 Maintenance & Operations 74,668.50 44,900.00 44,900.00 30,080.32 (14,819.68) 271,383.88 288,300.00 293,400.00 272,268.06 (21,131.94) 258,837.97 265,000.00 270,100.00 245,309.03 (24,790.97) 12,545.91 23,300.00 23,300.00 26,959.03 3,659.03 1,105,930.02 815,400.00 849,000.00 845,572.30 (3,427.70) 739,969.94 471,000.00 484,600.00 507,337.29 22,737.29 204,840.96 222,900.00 242,900.00 225,658.68 (17,241.32) 114,127.12 90,100.00 90,100.00 81,176.33 (8,923.67) 46,992.00 31,400.00 31,400.00 31,400.00 0.00 419,119.01 416,000.00 506,000.00 410,886.97 (95,113.03) 419,119.01 416,000.00 506,000.00 410,886.97 (95,113.03) 302,452.37 385,100.00 417,100.00 407,779.18 (9,320.82) 230,643.02 246,100.00 248,100.00 236,680.86 (11,419.14) 31,015.83 69,100.00 69,100.00 96,965.02 27,865.02 25,097.52 51,100.00 81,100.00 55,333.30 (25,766.70) 15,696.00 18,800.00 18,800.00 18,800.00 0.00 511,290.53 568,800.00 577,600.00 528,439.58 (49,160.42) 418,043.60 420,600.00 417,400.00 365,570.45 (51,829.55) 47,045.14 105,100.00 117,100.00 121,051.57 3,951.57 7,897.79 12,600.00 12,600.00 11,317.56 (1,282.44) 38,304.00 30,500.00 30,500.00 30,500.00 0.00 951,178.92 1,094,500.00 1,145,900.00 1,018,008.84 (127,891.16) 731,218.27 804,600.00 811,700.00 684,806.55 (126,893.45) 142,273.96 127,700.00 172,000.00 163,073.74 (8,926.26) 13,786.69 15,300.00 15,300.00 23,228.55 7,928.55 63,900.00 146,900.00 146,900.00 146,900.00 0.00 4,542,802.03 4,654,900.00 11,264,048.96 6,173,386.27 (5,090,662.69) 109,543.58 340,000.00 217,700.00 168,954.95 (48,745.05) 503,216.66 308,600.00 379,600.00 382,755.46 3,155.46 55,999.06 0.00 0.00 6,367.35 6,367.35 0.00 0.00 2,253,000.00 2,254,676.03 1,676.03 345,295.92 332,000.00 332,000.00 332,000.00 0.00 3,528,746.81 3,674,300.00 8,081,748.96 3,028,632.48 (5,053,116.48) 14,085,960.09 14,670,400.00 14,832,400.00 14,451,363.86 (381,036.14) 14,037,475.37 14,631,300.00 14,793,300.00 14,417,358.37 (375,941.63) 2,377.88 2,500.00 2,500.00 1,401.40 (1,098.60) 6,662.14 6,500.00 6,500.00 2,504.09 (3,995.91) 4,440.70 0.00 0.00 0.00 0.00 35,004.00 30,100.00 30,100.00 30,100.00 0.00 5,405,679.94 6,531,300.00 6,591,300.00 5,816,590.43 (774,709.57) 5,227,265.50 6,340,900.00 6,390,900.00 5,643,879.97 (747,020.03) 71,786.84 69,100.00 79,100.00 64,526.13 (14,573.87) 37,472.81 54,800.00 54,800.00 52,804.50 (1,995.50) 19,850.75 14,500.00 14,500.00 3,379.83 (11,120.17) 49,304.04 52,000.00 52,000.00 52,000.00 0.00 974,951.46 832,200.00 836,300.00 783,381.65 (52,918.35) 478,225.72 464,400.00 468,500.00 469,592.03 1,092.03 64,770.75 60,000.00 60,000.00 48,360.00 (11,640.00) 272,449.06 232,800.00 232,800.00 190,429.62 (42,370.38) 122,905.93 0.00 0.00 0.00 0.00 36,600.00 75,000.00 75,000.00 75,000.00 0.00 472,612.68 612,600.00 606,700.00 522,038.55 (84,661.45) 290,955.54 440,400.00 434,500.00 361,513.86 (72,986.14) 42,955.62 87,300.00 87,300.00 88,593.37 1,293.37 74,668.50 44,900.00 44,900.00 30,080.32 (14,819.68) General Fund Expenditure Comparison Attachment 3 2015/16 Actual Expenses 2016/17 Original Budget 2016/17 Final Budget 2016/17 Actual Expenses Variance w/ Final Budget Utilities 31,333.02 0.00 0.00 1,851.00 1,851.00 Internal Service Charges 32,700.00 40,000.00 40,000.00 40,000.00 0.00 3003 - Recreation Programs & Special Events 234,010.19 134,200.00 135,700.00 129,864.59 (5,835.41) Salaries and Benefits 147,118.44 62,000.00 62,000.00 59,721.27 (2,278.73) Contract Services 46,114.88 0.00 0.00 373.46 373.46 Maintenance & Operations 31,380.87 39,200.00 40,700.00 36,769.86 (3,930.14) Internal Service Charges 9,396.00 33,000.00 33,000.00 33,000.00 0.00 3004 - Library 8.49 0.00 0.00 0.00 0.00 Maintenance & Operations 8.49 0.00 0.00 0.00 0.00 3005 - Parks Maintenance 1,445,249.85 1,694,900.00 1,718,500.00 1,708,800.97 (9,699.03) Salaries and Benefits 138,760.58 353,000.00 356,600.00 358,327.61 1,727.61 Contract Services 396,397.50 403,300.00 423,300.00 365,284.91 (58,015.09) Maintenance & Operations 141,384.28 139,600.00 139,600.00 128,412.80 (11,187.20) Utilities 211,607.49 235,100.00 235,100.00 292,875.65 57,775.65 Internal Service Charges 557,100.00 563,900.00 563,900.00 563,900.00 0.00 3006 - Museum 28.07 0.00 0.00 0.00 0.00 Maintenance & Operations 28.07 0.00 0.00 0.00 0.00 3007 - Marketing & Community Relations 698,261.43 828,100.00 905,100.00 830,897.63 (74,202.37) Salaries and Benefits 65,734.22 198,700.00 200,700.00 170,937.27 (29,762.73) Contract Services 208,996.96 212,500.00 242,500.00 282,830.83 40,330.83 Maintenance & Operations 418,826.25 400,400.00 443,400.00 360,629.53 (82,770.47) Capital Expenses 0.00 0.00 2,000.00 0.00 (2,000.00) Internal Service Charges 4,704.00 16,500.00 16,500.00 16,500.00 0.00 3008 - Public Buildings 1,120,889.49 1,409,500.00 1,413,100.00 1,376,354.84 (36,745.16) Salaries and Benefits 182,446.30 337,700.00 341,300.00 298,172.55 (43,127.45) Contract Services 75,203.07 108,600.00 90,600.00 93,031.41 2,431.41 Maintenance & Operations 725,189.58 773,800.00 773,800.00 775,079.98 1,279.98 Utilities 97,762.47 119,900.00 119,900.00 135,824.59 15,924.59 Capital Expenses 6,796.07 18,000.00 36,000.00 22,746.31 (13,253.69) Internal Service Charges 33,492.00 51,500.00 51,500.00 51,500.00 0.00 6001 - Design & Development Administration 1,346,755.83 1,052,600.00 1,061,400.00 1,003,341.29 (58,058.71) Salaries and Benefits 1,138,088.77 840,900.00 849,700.00 778,504.07 (71,195.93) Contract Services 66,899.91 113,200.00 113,200.00 111,944.22 (1,255.78) Maintenance & Operations 31,763.15 18,900.00 18,900.00 33,293.00 14,393.00 Internal Service Charges 110,004.00 79,600.00 79,600.00 79,600.00 0.00 6002 - Planning 516,302.45 566,300.00 594,300.00 504,010.65 (90,289.35) Salaries and Benefits 298,763.49 399,600.00 402,600.00 338,110.10 (64,489.90) Contract Services 194,111.99 90,000.00 115,000.00 95,534.54 (19,465.46) Maintenance & Operations 1,034.97 24,200.00 24,200.00 17,866.01 (6,333.99) Internal Service Charges 22,392.00 52,500.00 52,500.00 52,500.00 0.00 6003 - Building 581,904.14 905,000.00 909,100.00 695,619.70 (213,480.30) Salaries and Benefits 292,968.23 439,800.00 443,900.00 433,369.42 (10,530.58) Contract Services 254,175.50 391,000.00 391,000.00 191,036.17 (199,963.83) Maintenance & Operations 2,060.41 11,600.00 11,600.00 8,614.11 (2,985.89) Internal Service Charges 32,700.00 62,600.00 62,600.00 62,600.00 0.00 6004 - Code Compliance/Animal Control 822,455.82 1,001,500.00 1,017,600.00 911,979.40 (105,620.60) Salaries and Benefits 547,021.24 588,600.00 614,700.00 568,625.32 (46,074.68) Contract Services 161,109.10 290,000.00 280,000.00 213,371.01 (66,628.99) Maintenance & Operations 5,833.48 15,000.00 15,000.00 22,083.07 7,083.07 Internal Service Charges 108,492.00 107,900.00 107,900.00 107,900.00 0.00 6005 - Emergency Services 11,049.31 0.00 0.00 0.00 0.00 Utilities 11,049.31 0.00 0.00 0.00 0.00 6006 - The Hub 7,554.48 672,200.00 717,800.00 638,565.28 (79,234.72) Salaries and Benefits 7,554.48 534,500.00 540,100.00 507,741.50 (32,358.50) 31,333.02 0.00 0.00 1,851.00 1,851.00 32,700.00 40,000.00 40,000.00 40,000.00 0.00 234,010.19 134,200.00 135,700.00 129,864.59 (5,835.41) 147,118.44 62,000.00 62,000.00 59,721.27 (2,278.73) 46,114.88 0.00 0.00 373.46 373.46 31,380.87 39,200.00 40,700.00 36,769.86 (3,930.14) 9,396.00 33,000.00 33,000.00 33,000.00 0.00 8.49 0.00 0.00 0.00 0.00 8.49 0.00 0.00 0.00 0.00 1,445,249.85 1,694,900.00 1,718,500.00 1,708,800.97 (9,699.03) 138,760.58 353,000.00 356,600.00 358,327.61 1,727.61 396,397.50 403,300.00 423,300.00 365,284.91 (58,015.09) 141,384.28 139,600.00 139,600.00 128,412.80 (11,187.20) 211,607.49 235,100.00 235,100.00 292,875.65 57,775.65 557,100.00 563,900.00 563,900.00 563,900.00 0.00 28.07 0.00 0.00 0.00 0.00 28.07 0.00 0.00 0.00 0.00 698,261.43 828,100.00 905,100.00 830,897.63 (74,202.37) 65,734.22 198,700.00 200,700.00 170,937.27 (29,762.73) 208,996.96 212,500.00 242,500.00 282,830.83 40,330.83 418,826.25 400,400.00 443,400.00 360,629.53 (82,770.47) 0.00 0.00 2,000.00 0.00 (2,000.00) 4,704.00 16,500.00 16,500.00 16,500.00 0.00 1,120,889.49 1,409,500.00 1,413,100.00 1,376,354.84 (36,745.16) 182,446.30 337,700.00 341,300.00 298,172.55 (43,127.45) 75,203.07 108,600.00 90,600.00 93,031.41 2,431.41 725,189.58 773,800.00 773,800.00 775,079.98 1,279.98 97,762.47 119,900.00 119,900.00 135,824.59 15,924.59 6,796.07 18,000.00 36,000.00 22,746.31 (13,253.69) 33,492.00 51,500.00 51,500.00 51,500.00 0.00 1,346,755.83 1,052,600.00 1,061,400.00 1,003,341.29 (58,058.71) 1,138,088.77 840,900.00 849,700.00 778,504.07 (71,195.93) 66,899.91 113,200.00 113,200.00 111,944.22 (1,255.78) 31,763.15 18,900.00 18,900.00 33,293.00 14,393.00 110,004.00 79,600.00 79,600.00 79,600.00 0.00 516,302.45 566,300.00 594,300.00 504,010.65 (90,289.35) 298,763.49 399,600.00 402,600.00 338,110.10 (64,489.90) 194,111.99 90,000.00 115,000.00 95,534.54 (19,465.46) 1,034.97 24,200.00 24,200.00 17,866.01 (6,333.99) 22,392.00 52,500.00 52,500.00 52,500.00 0.00 581,904.14 905,000.00 909,100.00 695,619.70 (213,480.30) 292,968.23 439,800.00 443,900.00 433,369.42 (10,530.58) 254,175.50 391,000.00 391,000.00 191,036.17 (199,963.83) 2,060.41 11,600.00 11,600.00 8,614.11 (2,985.89) 32,700.00 62,600.00 62,600.00 62,600.00 0.00 822,455.82 1,001,500.00 1,017,600.00 911,979.40 (105,620.60) 547,021.24 588,600.00 614,700.00 568,625.32 (46,074.68) 161,109.10 290,000.00 280,000.00 213,371.01 (66,628.99) 5,833.48 15,000.00 15,000.00 22,083.07 7,083.07 108,492.00 107,900.00 107,900.00 107,900.00 0.00 11,049.31 0.00 0.00 0.00 0.00 11,049.31 0.00 0.00 0.00 0.00 7,554.48 672,200.00 717,800.00 638,565.28 (79,234.72) 7,554.48 534,500.00 540,100.00 507,741.50 (32,358.50) General Fund Expenditure Comparison Attachment 3 2015/16 Actual Expenses 2016/17 Original Budget 2016/17 Final Budget 2016/17 Actual Expenses Variance w/ Final Budget Contract Services 0.00 48,200.00 88,200.00 48,067.44 (40,132.56) Maintenance & Operations 0.00 10,100.00 10,100.00 3,356.34 (6,743.66) Internal Service Charges 0.00 79,400.00 79,400.00 79,400.00 0.00 7001 - Public Works Administration 418,617.45 0.00 0.00 0.00 0.00 Salaries and Benefits 319,596.96 0.00 0.00 0.00 0.00 Contract Services 69,881.89 0.00 0.00 0.00 0.00 Maintenance & Operations 11,834.60 0.00 0.00 0.00 0.00 Internal Service Charges 17,304.00 0.00 0.00 0.00 0.00 7002 - Public Works Development Services 565,598.04 617,100.00 623,100.00 436,843.46 (186,256.54) Salaries and Benefits 384,049.00 312,900.00 318,900.00 313,261.27 (5,638.73) Contract Services 144,938.35 255,000.00 255,000.00 79,082.50 (175,917.50) Maintenance & Operations 5,620.69 6,200.00 6,200.00 1,499.69 (4,700.31) Capital Expenses 2,790.00 0.00 0.00 0.00 0.00 Internal Service Charges 28,200.00 43,000.00 43,000.00 43,000.00 0.00 7003 - Streets 540.47 0.00 0.00 10,754.70 10,754.70 Salaries and Benefits 440.47 0.00 0.00 0.00 0.00 Maintenance & Operations 100.00 0.00 0.00 10,754.70 10,754.70 7006 - Engineering Services 1,420,100.24 1,491,200.00 2,396,206.00 1,858,330.76 (537,875.24) Salaries and Benefits 514,336.40 620,400.00 629,500.00 569,216.48 (60,283.52) Contract Services 824,561.48 766,700.00 1,662,606.00 1,185,944.77 (476,661.23) Maintenance & Operations 5,410.36 9,600.00 9,600.00 8,669.51 (930.49) Internal Service Charges 75,792.00 94,500.00 94,500.00 94,500.00 0.00 GENERAL FUND EXPENSES 38,232,686.68 41,242,100.00 49,411,654.96 41,335,078.96 (8,076,576.00) 0.00 48,200.00 88,200.00 48,067.44 (40,132.56) 0.00 10,100.00 10,100.00 3,356.34 (6,743.66) 0.00 79,400.00 79,400.00 79,400.00 0.00 418,617.45 0.00 0.00 0.00 0.00 319,596.96 0.00 0.00 0.00 0.00 69,881.89 0.00 0.00 0.00 0.00 11,834.60 0.00 0.00 0.00 0.00 17,304.00 0.00 0.00 0.00 0.00 565,598.04 617,100.00 623,100.00 436,843.46 (186,256.54) 384,049.00 312,900.00 318,900.00 313,261.27 (5,638.73) 144,938.35 255,000.00 255,000.00 79,082.50 (175,917.50) 5,620.69 6,200.00 6,200.00 1,499.69 (4,700.31) 2,790.00 0.00 0.00 0.00 0.00 28,200.00 43,000.00 43,000.00 43,000.00 0.00 540.47 0.00 0.00 10,754.70 10,754.70 440.47 0.00 0.00 0.00 0.00 100.00 0.00 0.00 10,754.70 10,754.70 1,420,100.24 1,491,200.00 2,396,206.00 1,858,330.76 (537,875.24) 514,336.40 620,400.00 629,500.00 569,216.48 (60,283.52) 824,561.48 766,700.00 1,662,606.00 1,185,944.77 (476,661.23) 5,410.36 9,600.00 9,600.00 8,669.51 (930.49) 75,792.00 94,500.00 94,500.00 94,500.00 0.00 38,232,686.68 41,242,100.00 49,411,654.96 41,335,078.96 (8,076,576.00) General Fund Expenditure Comparison Attachment 3 11/15/2017 1 Financial Advisory Commission Meeting November 15, 2017 Financial Advisory Commission November 15, 2017 C1-Approve Minutes of August 9,2017 2 Financial Advisory Commission November 15, 2017 C2-Receive and File the First Quarter FY 2017/18 Treasury Reports for July , August, and September, 2017 C3‐Receive and File the 4th Quarter Fiscal Year Book Value  by Investment Type September 30, 2017 3 Financial Advisory Commission November 15, 2017 C3-Receive and File Revenue and Expenditure Reports dated June, 2017 C3‐Receive and File the 4th Quarter Fiscal Year Financial Advisory Commission November 15, 2017 C4-Receive and File Revenue and Expenditure Reports dated July and August, 2017 C3‐Receive and File the 4th Quarter Fiscal Year 2/16/2018 4 Financial Advisory Commission November 15, 2017 C5-Receive and File Revenue and Expenditure Reports dated September, 2017 C3‐Receive and File the 4th Quarter Fiscal Year Financial Advisory Commission November 15, 2017 B1‐Appoint the Chairman and two Commissioners to Formulate the  Annual Measure G Sales Tax  Oversight Compliance Report C3‐Receive and File the 4th Quarter Fiscal Year 5 Measure G Oversight Sub‐Committee •Chairman plus two Commissioners •Review of revenue to date •Review of actual and proposed expenditures •Prepare report for  Council January workshop, January 13 (Saturday) Financial Advisory Commission November 15, 2017 S1‐Discuss Reserve Analysis Report and Findings C3‐Receive and File the 4th Quarter Fiscal Year 6 Reserve  Analysis Review •Current reserve categories and funding •Best practices •Comparison to other cities •Revenue and expenditure volatility •Growth projections •Mitigation risks & insurance policies •Vulnerability to extreme events (natural, economic) Initial Recommendations •Continue to utilize 10‐year projections •Emergency reserves split into “natural disaster” and “economic  disaster” components •Cash flow reserves based on history •Establish CIP sinking fund •Establish CalPERS Pension  trust 7 Reserve  Targets Reserve/Trust Reserve Target Annual Funding ($) Emergency Reserve Natural Disaster TBD $1,500,000 Economic Disaster $11,000,000 $1,000,000 Total  Emergency Reserves TBD $2,500,000 Cash Flow $5,000,000 CIP Sinking Fund $10,000,000 $1,000,000 Total  Reserves $26,000,000 $3,500,000 CalPERS Pension  Trust $10,000,000 $1,000,000 Financial Advisory Commission November 15, 2017 S2‐Discuss Budget VS Actual Revenue and Expense Report Options C3‐Receive and File the 4th Quarter Fiscal Year 8 Budget vs. Actual Reporting •Review alternatives for  presenting actual revenue and expenditures as compared to budget •Review sample quarterly report and discuss options Financial Advisory Commission November 15, 2017 D1-Second Quarter Sales Tax Update for the City of La Quinta 9 Comparisons to County and State Major Industry Groups Sales Tax Measure G 10 Top 25 Producers Sales Tax Arco AM PM Lowes AT&T Mobility Marshalls Bed Bath & Beyond Ross Best Buy Stater Bros Chevy/Cadillac of LQ Stein Mart Circle K Target Cliffhouse TJ Maxx Costco Torre Nissan Home Depot Tower Mart Hyundai of LQ Verizon Wireless In n Out Burger Vons Kohls Walmart LQ Resort Measure G Amazon.com Marshalls Arco AM PM Mathis Bros Furniture Bed Bath & Beyond Ross Benchmark Education Co Stater Bros Best Buy Stein Mart Circle K Target Costco TJ Maxx Desert European Motorcar Torre Nissan Home Depot Tower Mart I10 Toyota Verizon Wireless Kohls Vons LQ Resort Walmart Lowes Financial Advisory Commission Meeting November 15, 2017