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2018 02 12 FACFINANCIAL ADVISORY COMMISSION AGENDA 1 FEBRUARY 12, 2018 REGULAR MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL WEST CONFERENCE ROOM 78-495 Calle Tampico, La Quinta REGULAR MEETING ON MONDAY, FEBRUARY 12, 2018 AT 4:00 P.M. CALL TO ORDER ROLL CALL: Commissioners: Johnson, Lopez, Mills, Rosen, Turbow, Twohey, Chairperson Batavick PLEDGE OF ALLEGIANCE PUBLIC COMMENT At this time members of the public may address the Commission on any matter not listed on the agenda. Please complete a “Request to Speak” form and limit your comments to three minutes. The Financial Advisory Commission values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS CONFIRMATION OF AGENDA CONSENT CALENDAR 1.APPROVE MINUTES OF NOVEMBER 15, 2017 2.RECEIVE AND FILE THE SECOND QUARTER FISCAL YEAR 2017/18 TREASURY REPORTS FOR OCTOBER, NOVEMBER, AND DECEMBER 2017. 3.RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED OCTOBER 31, NOVEMBER 30, AND DECEMBER 31, 2017 Financial Advisory Commission agendas and staff reports are now available on the City’s web page: www.laquintaca.gov/ FINANCIAL ADVISORY COMMISSION AGENDA 2 FEBRUARY 12, 2018 REGULAR MEETING STUDY SESSION 1.DISCUSS RESERVE POLICY ANALYSIS AND FINDINGS 2.DISCUSS YEAR END MEASURE G SALES TAX REPORT BUSINESS SESSION 1.APPOINT TWO COMMISSIONERS TO SERVE ON THE SELECTION COMMITTEE FOR BANKING SERVICES DEPARTMENTAL REPORTS COMMISSIONERS’ ITEMS 1.DISCUSS AUTO DEALERSHIPS’ PROPOSED IMPROVMENTS ALONG HIGHWAY 111 FRONTAGE 2.DISCUSS MEASURE G PROJECT SIGNS 3.DISCUSS APPRORIATION OF FUNDS FROM UNASSIGNED RESERVES TO THE LAND ACQUISITION FUND FOR PROPERTY ACQUISITION ADJOURNMENT The next regular meeting of the Financial Advisory Commission will be held on May 9, 2017 commencing at 4:00 p.m. at the La Quinta Study Session Room, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Jessica Delgado, Management Assistant, of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta Financial Advisory Commission meeting was posted on the City’s website, near the entrance to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at 78-630 Highway 111, and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on February 7, 2018. DATED: February 7, 2018 Jessica Delgado, Management Assistant City of La Quinta, California FINANCIAL ADVISORY COMMISSION AGENDA 3 FEBRUARY 12, 2018 REGULAR MEETING Public Notices The La Quinta City West Conference Room is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk’s office at 777-7103, twenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the FAC, arrangements should be made in advance by contacting the City Clerk’s office at 777-7103. A one (1) week notice is required. If background material is to be presented to the Financial Advisory Commission during a special FAC meeting, please be advised that five (5) copies of all documents, exhibits, etc., must be supplied to the Management Assistant for distribution. It is requested that this take place prior to the beginning of the meeting. Any writings or documents provided to a majority of the Financial Advisory Commission regarding any item(s) on the agenda will be made available for public inspection at the Community Development counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. 4 4 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 12, 2018 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE SECOND QUARTER 2017/18 TREASURY REPORTS FOR OCTOBER, NOVEMBER, AND DECEMBER 2017 RECOMMENDATION Receive and file the second quarter fiscal year 2017/18 Treasury Reports for October, November, and December 2017. BACKGROUND/ANALYSIS Treasurer’s Commentary and Summary of Significant Activity The portfolio increased $2.03 million, from $123.06 million to $125.09 million. The increase reflects revenue, expenditure, and investment activities during the quarter. In October, $25.6 million was withdrawn from the fiscal agent account and placed into a newly opened Housing LAIF account restricted for housing construction and rehabilitation per bond covenants. In December, $1.5 million in committed reserves set aside for Other Post-Employment Benefits (OPEB-retiree health) was transferred to the newly established CalPERs California Employers’ Retiree Benefit Trust (CERBT) pursuant to Council approval in August 2017. The money in the trust is for the sole purpose of providing funding for this liability. The City’s LAIF account balance was reduced by $1.8 million, which went towards the investments noted in the next paragraph. Throughout the quarter, two CD’s matured and one was sold for a total of $728,480. This money was reinvested, along with an additional $5.2 million, and used to purchase 16 new investments (12 CD’s, two agency bonds, one US treasury and one corporate bond). These new investments are listed in the purchases table below and also in the attached reports. Overall during the second quarter of 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 to capitalize on market conditions. The fiscal year annual effective rate of return is 1.06% as of December. CONSENT CALENDAR ITEM NO. 2 1 Issuer Type Par Value Purchase Date Coupon Rate Maturity Alliance Credit Union CD $ 245,000 10/13/2017 2.250 10/13/2022 Barclays Bank CD $ 240,000 10/25/2017 2.300 10/25/2022 Toyota Motor Corp Corporate 500,000$ 11/07/2017 1.550 10/18/2019 Mountain America Bank & Trust CD 245,000$ 11/08/2017 2.300 11/08/2022 Federal Farm Credit Bank Agency 1,000,000$ 11/09/2017 1.700 09/01/2021 Federal Home Loan Bank Agency 1,000,000$ 11/09/2017 1.625 09/11/2020 Jefferson Bank and Trust CD 245,000$ 11/09/2017 1.750 05/12/2020 US Treasury Treasury 500,000$ 11/09/2017 1.250 11/15/2018 Morgan Stanley CD 245,000$ 11/16/2017 1.800 11/18/2019 Morgan Stanley Private Bank CD 245,000$ 11/16/2017 1.750 11/18/2019 Kansas State Bank CD 245,000$ 11/17/2017 2.100 05/17/2022 Cross First Bank CD 245,000$ 11/20/2017 2.200 11/18/2022 Belmont Savings CD 245,000$ 11/21/2017 2.100 11/22/2021 Enterprise Bank CD 245,000$ 11/28/2017 2.150 11/28/2022 Freedom Credit Union CD 245,000$ 12/22/2017 2.050 12/22/2020 Knoxville TVA Credit Union CD 245,000$ 12/29/2017 2.400 12/29/2022 Investments by Purchase Date Investment Type October November December Bank Accounts 4% 4% 2% Local Agency Investment Fund (LAIF) Housing (new)21% 21% 20% Local Agency Investment Fund (LAIF) City 37% 33% 35% Federal Agency Coupons 12% 13% 13% Treasury Coupons 13% 14% 14% Certificates of Deposit (CD's)11% 12% 12% Corporate Notes 2% 2% 2% Money Markets with Fiscal Agent 0% 0% 0% Managed Pool Accounts-OPEB Trust (new)0% 0% 1% Total 100% 100% 100% Percent of Portfolio Portfolio Allocations Total Earnings Average Days to Maturity October 110,916.93$ 364 November 123,901.53$ 397 December 129,917.43$ 382 Quarter 364,735.89$ 381 2 Other Notes Money market funds with the fiscal agent are bond proceeds subject to bond indentures, not the City’s investment policy. Successor Agency (SA) funds cannot be invested long-term, therefore SA funds are only invested in LAIF. Looking Ahead The Treasurer follows a “buy and hold” investment policy, unless it is fiscally advantageous 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 both immediate and long- term cash flow needs. ALTERNATIVES - None Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director/City Treasurer Attachment: 1. Treasurer’s Report for October 1, 2017 to December31, 2017 3 ATTACHMENT 1 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value October 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Bank Accounts 1City Petty Cash1059 1,700.00 1,700.0007/01/2016 1,700.00 1SYS1059 0.000 1First Empire Bank1060 10.85 10.8507/01/2016 10.85 1SYS1060 0.000 1La Quinta Palms Realty1062 133,595.57 133,595.5707/01/2016 133,595.57 1SYS1062 0.000 1Wells Fargo1057 3,046,653.14 3,046,653.1407/01/2016 3,046,653.14 14159282482 0.000 1Washington St Apt La Quinta1061 1,126,155.35 1,126,155.3507/01/2016 1,126,155.35 1SYS1061 0.000 4,308,114.91 14,308,114.914,308,114.914,904,783.46Subtotal and Average 1 0.000 Local Agency Invstmnt Fund-Housing 1Local Agency Inv Fund1113 25,595,000.00 25,595,000.00 1.14310/31/2017 25,595,000.00 125-33-005 1.143 25,595,000.00 125,595,000.0025,595,000.00825,645.16Subtotal and Average 1 1.143 Local Agency Investment Fund-City 1Local Agency Inv Fund1055 45,575,027.18 45,575,027.18 1.14345,509,010.42 198-33-434 1.143 45,575,027.18 145,509,010.4245,575,027.1845,521,058.04Subtotal and Average 1 1.143 Federal Agency Coupon Securities 618Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 989,690.00 7323133EGLC7 1.456 1,274Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,436,625.00 1,8263130A7QZ1 1.423 1,090Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,451,575.00 1,4613130A9UQ2 1.375 1,274Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.25004/28/2016 2,481,975.00 1,8263134G8Y37 2.115 1,609Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,983,460.00 1,8263134GBAE2 2.106 1,519Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 992,910.00 1,6373134GBXF4 2.012 1,729Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 994,890.00 1,8263134GBWG3 2.150 817Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,991,720.00 1,0363135G0S53 1.700 14,473,350.00 1,56614,322,845.0014,500,000.0014,473,350.00Subtotal and Average 1,228 1.760 Treasury Coupon Securities 1,337U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,872,450.00 1,808912828S27 1.125 348U.S. Treasury1063 2,500,000.00 2,502,250.00 10/15/20180.87510/24/2016 2,485,550.00 721912828L81 0.829 881U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,482,525.00 1,107912828J84 1.602 774U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,487,300.00 1,000912828U73 1.513 1,460U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,950,400.00 1,679912828T67 1.903 150U.S. Treasury1071 2,000,000.00 1,998,125.00 03/31/20180.87503/27/2017 1,996,880.00 369912828Q45 0.968 16,417,175.00 1,22316,275,105.0016,500,000.0016,417,175.00Subtotal and Average 902 1.284 Portfolio CITY CP Run Date: 02/07/2018 - 09:08 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 October 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 565First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 240,465.60 1,82631938QH72 1.751 750First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 239,620.80 853320165HX4 1.653 363First Merchants Bank1020 240,000.00 240,000.00 10/30/20181.50004/30/2014 240,691.20 1,64432082BDF3 1.501 40First National-Mayfield1044 248,000.00 248,000.00 12/11/20171.00006/11/2015 248,024.80 914330459AY4 1.002 89Third Federal Savings and Loan1038 240,000.00 240,000.00 01/29/20181.25004/29/2014 240,057.60 1,37188413QAN8 1.251 1,807Alliance Credit Union1095 245,000.00 245,000.00 10/13/20222.25010/13/2017 244,238.05 1,82601859BAA3 2.251 418Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 240,266.40 1,09602006LWX7 1.702 1,265Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 240,300.00 1,46102587DP85 2.252 1,762American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 240,775.20 1,82602587CFU9 2.402 1,819Barclays Bank1097 240,000.00 240,000.00 10/25/20222.30010/25/2017 239,719.20 1,82606740KLJ4 2.301 180Berkshire Bank1004 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,295.20 1,461084601AL7 1.351 1,576BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 240,420.00 1,82605580AGK4 2.201 1,170Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 238,617.60 1,28006610RAP4 1.804 1,314Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 241,814.40 1,46114042RGD7 2.252 952Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 245,526.75 1,827140420RX0 1.902 138Carolina Alliance1007 248,000.00 248,000.00 03/19/20181.00006/19/2015 247,786.72 1,00414376RAM9 1.000 1,209Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 237,712.80 1,82720033APG5 1.702 286CitiBank1008240,000.00 240,000.00 08/14/20181.90008/14/2013 240,979.20 1,82617284CKN3 1.901 1,351Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 238,351.20 1,46115523RBJ4 1.851 216Compass Bank1010 248,000.00 248,000.00 06/05/20181.35006/05/2015 248,057.04 1,09620451PLG9 1.351 581Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 248,032.24 1,46120786ABD6 1.501 180Cornerstone Community Bank1012 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,081.60 1,461219240AZ1 1.351 180Crescent Bank and Trust1013 240,000.00 240,000.00 04/30/20181.30004/30/2014 240,021.60 1,461225645DC1 1.301 1,553Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 241,053.60 1,8262546722U1 2.251 811Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 239,373.60 916259744DS6 1.655 135Embassy National1015 248,000.00 248,000.00 03/16/20181.00006/17/2015 247,965.28 1,003290800AL5 1.000 545Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 241,382.40 1,826294209AQ4 1.651 947EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 246,985.68 1,82729976DXX3 1.702 461Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 247,020.40 1,341307814DC4 1.252 565Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 240,468.00 1,827402194EB6 1.724 1,637Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 242,049.60 1,82638148PJK4 2.401 985First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 239,131.20 1,096319141GT8 1.752 1,716HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 240,506.40 1,82640434YLE5 2.300 72Independent Bank1025 248,000.00 248,000.00 01/12/20180.90006/12/2015 248,024.80 94545383UQY4 0.902 216MB Financial Bank1027 248,000.00 248,000.00 06/05/20181.10006/05/2015 247,895.84 1,09655266CME3 1.101 175Medallion Bank1028 240,000.00 240,000.00 04/25/20181.35004/25/2014 240,086.40 1,46158403BL95 1.351 Portfolio CITY CP Run Date: 02/07/2018 - 09:08 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value October 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 979Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 239,162.40 1,09658740XZL7 1.750 222MFR Trade & Trust1026 248,000.00 248,000.00 06/11/20181.20006/10/2015 247,823.92 1,097564759QT8 1.033 954Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 246,631.04 1,827063615AVO 1.652 406Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,739.60 1,279619165GE7 1.251 189Merrick Bank1029 240,000.00 240,000.00 05/09/20181.35005/09/2014 240,314.40 1,46159012Y6Q5 1.351 1,540The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 237,753.60 1,645677721CN0 1.903 573Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 241,394.40 1,826704692AL6 1.801 1,302PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 236,476.80 1,82674267GVG9 1.501 257Regal Bank1033 240,000.00 240,000.00 07/16/20181.40005/16/2014 240,487.20 1,52275874TAH4 1.401 1,118Fist Bank RIchmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 243,770.10 1,251319267GC8 1.802 673Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 248,166.16 1,55376951DAL4 1.402 1,693Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 241,176.00 1,826795450A70 2.351 159South Atlantic1036 248,000.00 248,000.00 04/09/20181.00006/09/2015 247,724.72 1,03583637AAP9 1.001 580Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 248,032.24 1,46183427LAX2 1.401 902Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 238,658.40 1,096857894TC3 1.588 1,674Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 241,824.00 1,82687164XQV1 2.401 29Traverse City1040 240,000.00 240,000.00 11/30/20171.10005/30/2014 240,064.80 1,280894333FE8 1.102 538Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 241,339.20 1,82694768NJQ8 1.801 482Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 240,196.80 1,0969497483N5 1.201 13,335,000.00 1,46613,332,534.1813,335,000.0013,193,709.68Subtotal and Average 766 1.638 Corporate Notes 1,372Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 489,580.00 1,514037833CC2 1.900 485Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,988,720.00 702478160BR4 1.305 2,486,250.00 8632,478,300.002,500,000.002,486,250.00Subtotal and Average 661 1.423 Money Market with Fiscal Agent 1US Bank1058 3,485.62 3,485.6207/01/2016 3,485.62 1SYS1058 0.000 3,485.62 13,485.623,485.6223,961,300.59Subtotal and Average 1 0.000 528121,783,271.93 122,316,627.71 364 1.254121,824,395.13 122,193,402.71Total and Average Portfolio CITY CP Run Date: 02/07/2018 - 09:08 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Stated RateMarket Value October 31, 2017 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 0.00 528121,783,271.93 122,316,627.71 364 1.254 0 0 454.32 454.32 454.32 454.32 Subtotal Accrued Interest at PurchaseAverage Balance 121,824,849.45 122,193,857.03Total Cash and Investments Portfolio CITY CP Run Date: 02/07/2018 - 09:08 PM (PRF_PM2) 7.3.0 City of La Quinta Total Earnings City of La Quinta - Sorted by Fund - Fund October 1, 2017 - October 31, 2017 Current Rate Ending Par Value Ending Fund Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted InterestAnnualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001001240,000.00 1.700ALLY 346.52 0.00 346.521.700101240,000.0002006LWX7 0.00 248,000.001002248,000.00 1.650MIDWES 347.54 0.00 347.541.650101248,000.00063615AVO 0.00 0.0010030.00 1.900BARCLY 224.88 0.00 704.881.900101240,000.0006740KGR2 480.00 240,000.001004240,000.00 1.350BERKS 275.18 0.00 275.181.350101240,000.00084601AL7 0.00 245,000.001006245,000.00 1.900CAPONE 395.36 0.00 395.361.900101245,000.00140420RX0 0.00 248,000.001007248,000.00 1.000CAROL 210.63 0.00 210.631.000101248,000.0014376RAM9 0.00 240,000.001008240,000.00 1.900CITI 387.29 0.00 387.291.900101240,000.0017284CKN3 0.00 240,000.001009240,000.00 1.700CCBA 346.52 0.00 346.521.700101240,000.0020033APG5 0.00 248,000.001010248,000.00 1.350COMP 284.35 0.00 284.351.350101248,000.0020451PLG9 0.00 248,000.001011248,000.00 1.500CONNEC 315.95 0.00 315.951.500101248,000.0020786ABD6 0.00 240,000.001012240,000.00 1.350CORNER 275.18 0.00 275.181.350101240,000.00219240AZ1 0.00 240,000.001013240,000.00 1.300CRESC 264.99 0.00 264.991.300101240,000.00225645DC1 0.00 248,000.001015248,000.00 1.000EMBNAT 210.63 0.00 210.631.000101248,000.00290800AL5 0.00 240,000.001016240,000.00 1.650EPHRAT 336.33 0.00 336.331.650101240,000.00294209AQ4 0.00 248,000.001017248,000.00 1.700EVRBA 358.07 0.00 358.071.700101248,000.0029976DXX3 0.00 248,000.001018248,000.00 1.250FARMER 263.29 0.00 263.291.250101248,000.00307814DC4 0.00 240,000.001019240,000.00 1.7501STBUS 356.72 0.00 356.721.750101240,000.0031938QH72 0.00 240,000.001020240,000.00 1.5001STMER 305.75 0.00 305.751.500101240,000.0032082BDF3 0.00 240,000.001024240,000.00 1.750GCB 356.71 0.00 356.711.750101240,000.00402194EB6 0.00 248,000.001025248,000.00 0.900INDEP 189.56 0.00 189.560.900101248,000.0045383UQY4 0.00 248,000.001026248,000.00 1.200MFR 252.76 0.00 252.761.200101248,000.00564759QT8 0.00 248,000.001027248,000.00 1.100MBFIN 231.70 0.00 231.701.100101248,000.0055266CME3 0.00 240,000.001028240,000.00 1.350MEDBA 275.18 0.00 275.181.350101240,000.0058403BL95 0.00 240,000.001029240,000.00 1.350MRRCK 275.18 0.00 275.181.350101240,000.0059012Y6Q5 0.00 248,000.001030248,000.00 1.250MORTN 263.29 0.00 263.291.250101248,000.00619165GE7 0.00 240,000.001031240,000.00 1.800PEAPAC 366.91 0.00 366.911.800101240,000.00704692AL6 0.00 240,000.001032240,000.00 1.500PRVTBA 305.75 0.00 305.751.500101240,000.0074267GVG9 0.00 240,000.001033240,000.00 1.400REGAL 285.37 0.00 285.371.400101240,000.0075874TAH4 0.00 248,000.001034248,000.00 1.400RVRW 294.88 0.00 294.881.400101248,000.0076951DAL4 0.00 248,000.001035248,000.00 1.400SOLOM 294.88 0.00 294.881.400101248,000.0083427LAX2 0.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:17 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 2 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest October 1, 2017 - October 31, 2017 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 248,000.001036248,000.00 1.000SOATL 210.63 0.00 210.631.000101248,000.0083637AAP9 0.00 240,000.001038240,000.00 1.2503RD 254.80 0.00 254.801.250101240,000.0088413QAN8 0.00 240,000.001040240,000.00 1.100TRAV 224.22 0.00 224.221.100101240,000.00894333FE8 0.00 240,000.001042240,000.00 1.800WEB 366.90 0.00 366.901.800101240,000.0094768NJQ8 0.00 240,000.001043240,000.00 1.200WELLS 244.60 0.00 244.601.200101240,000.009497483N5 0.00 248,000.001044248,000.00 1.0001STNAT 210.63 0.00 210.631.000101248,000.00330459AY4 0.00 5,000,000.0010455,000,000.00 1.125USTR 4,738.45 0.00 4,738.451.1161015,000,000.00912828S27 0.00 2,491,250.0010532,500,000.00 1.350FHLB 2,812.50 0.00 2,812.501.3291012,491,250.003130A7QZ1 0.00 2,500,000.0010542,500,000.00 1.250FHLMC 2,604.17 0.00 2,604.171.2261012,500,000.003134G8Y37 0.00 45,575,027.18105545,575,027.18 1.143LAIF 46,583.87 0.00 46,583.871.20510145,435,606.9198-33-434 0.00 3,046,653.1410573,046,653.14WELLS 0.01 0.00 0.011013,636,712.714159282482 0.00 1,700.0010591,700.00CITYPC 0.00 0.00 0.001011,700.00SYS1059 0.00 2,502,250.0010632,500,000.00 0.875USTR 1,858.38 0.00 1,858.380.8741012,502,250.00912828L81 0.00 2,500,000.0010642,500,000.00 1.375FHLB 2,864.58 0.00 2,864.581.3491012,500,000.003130A9UQ2 0.00 240,000.001066240,000.00 2.250DISCOV 458.63 0.00 458.632.250101240,000.002546722U1 0.00 240,000.001067240,000.00 2.200BMW 448.44 0.00 448.442.200101240,000.0005580AGK4 0.00 2,483,250.0010682,500,000.00 1.375USTR 2,927.54 0.00 2,927.541.3881012,483,250.00912828J84 0.00 2,490,750.0010692,500,000.00 1.375USTR 2,911.55 0.00 2,911.551.3761012,490,750.00912828U73 0.00 1,942,800.0010702,000,000.00 1.250USTR 2,107.10 0.00 2,107.101.2771011,942,800.00912828T67 0.00 1,998,125.0010712,000,000.00 0.875USTR 1,490.38 0.00 1,490.380.8781011,998,125.00912828Q45 0.00 2,000,000.0010722,000,000.00 1.700FNMA 2,833.34 0.00 2,833.341.6681012,000,000.003135G0S53 0.00 1,990,000.0010732,000,000.00 2.000FHLMC 3,333.34 0.00 3,333.341.9721011,990,000.003134GBAE2 0.00 1,993,200.0010752,000,000.00 1.125J&J 1,875.00 0.00 1,875.001.1081011,993,200.00478160BR4 0.00 240,000.001076240,000.00 1.600STRNS 326.14 0.00 326.141.600101240,000.00857894TC3 0.00 240,000.001077240,000.00 2.250AMEX 458.63 0.00 458.632.250101240,000.0002587DP85 0.00 240,000.001078240,000.00 2.400GLDMAN 489.21 0.00 489.212.400101240,000.0038148PJK4 0.00 493,050.001079500,000.00 1.550APPL 645.84 0.00 645.841.542101493,050.00037833CC2 0.00 240,000.001080240,000.00 2.400SYNCHR 489.20 0.00 489.202.400101240,000.0087164XQV1 0.00 245,000.001081245,000.00 1.800RICHMN 374.55 0.00 374.551.800101245,000.00319267GC8 0.00 240,000.001082240,000.00 2.250CAP1NA 458.63 0.00 458.632.250101240,000.0014042RGD7 0.00 240,000.001083240,000.00 2.350SALMAE 461.37 0.00 461.372.263101240,000.00795450A70 0.00 999,500.0010841,000,000.00 2.000FHLMC 1,666.66 0.00 1,666.661.963101999,500.003134GBXF4 0.00 240,000.001085240,000.00 1.850CNTRL 377.09 0.00 377.091.850101240,000.0015523RBJ4 0.00 240,000.001086240,000.00 1.800BNKRS 366.91 0.00 366.911.800101240,000.0006610RAP4 0.00 240,000.001087240,000.00 1.750MERCTL 353.81 0.00 353.811.736101240,000.0058740XZL7 0.00 240,000.001088240,000.00 2.300HSBC 465.00 0.00 465.002.281101240,000.0040434YLE5 0.00 240,000.001089240,000.00 1.900OHVAL 387.29 0.00 387.291.900101240,000.00677721CN0 0.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:17 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 3 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest October 1, 2017 - October 31, 2017 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 1,000,000.0010901,000,000.00 2.150FHLMC 1,791.67 0.00 1,791.672.1101011,000,000.003134GBWG3 0.00 240,000.001091240,000.00 1.6501STFRM 336.33 0.00 336.331.650101240,000.00320165HX4 0.00 992,600.0010921,000,000.00 1.080FFCB 900.00 0.00 900.001.068101992,600.003133EGLC7 0.00 240,000.001093240,000.00 1.650DOUGLS 336.33 0.00 336.331.650101240,000.00259744DS6 0.00 240,000.001094240,000.00 1.750HIGHLD 356.71 0.00 356.711.750101240,000.00319141GT8 0.00 245,000.001095245,000.00 2.250ALLIAN 286.95 0.00 286.952.2501010.0001859BAA3 0.00 240,000.001096240,000.00 2.400AMFSB 489.20 0.00 489.202.400101240,000.0002587CFU9 0.00 240,000.001097240,000.00 2.300BARCLY 105.86 0.00 105.862.3001010.0006740KLJ4 0.00 95,458,380.32Subtotal 95,335,155.32 1.263 102,659.790.00102,179.7995,540,794.62 480.00 Fund: 1st Empire Securities Cash Bal 10.85106010.85EMPIRE 5.85 0.00 5.850.14610238,585.85SYS1060 0.00 10.85Subtotal 10.85 0.146 5.850.005.8538,585.85 0.00 Fund: Fiscal Agent 3,485.6210583,485.62USBANK 7,449.78 0.00 7,449.780.36623126,241,506.96SYS1058 0.00 3,485.62Subtotal 3,485.62 0.366 7,449.780.007,449.7826,241,506.96 0.00 Fund: Housing Authority : WSA and LQ 1,126,155.3510611,126,155.35WSALQ 0.00 0.00 0.002411,118,039.60SYS1061 0.00 133,595.571062133,595.57LQPR 0.00 0.00 0.00241119,452.87SYS1062 0.00 1,259,750.92Subtotal 1,259,750.92 0.000.000.001,237,492.47 0.00 Fund: SA Low/Mod Bond Fund 25,595,000.00111325,595,000.00 1.143LAIF 801.51 0.00 801.511.1432490.0025-33-005 0.00 25,595,000.00Subtotal 25,595,000.00 1.143 801.510.00801.510.00 0.00 122,316,627.71Total 122,193,402.71 1.072 110,916.930.00110,436.93123,058,379.90 480.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:17 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Bank Accounts 1City Petty Cash1059 1,700.00 1,700.0007/01/2016 1,700.00 1SYS1059 0.000 1First Empire Bank1060 0.00 0.0007/01/2016 0.00 1SYS1060 0.000 1La Quinta Palms Realty1062 145,571.45 145,571.4507/01/2016 145,571.45 1SYS1062 0.000 1Wells Fargo1057 3,695,123.07 3,695,123.0707/01/2016 3,695,123.07 14159282482 0.000 1Washington St Apt La Quinta1061 1,172,628.13 1,172,628.1307/01/2016 1,172,628.13 1SYS1061 0.000 5,015,022.65 15,015,022.655,015,022.655,224,664.96Subtotal and Average 1 0.000 Local Agency Invstmnt Fund-Housing 1Local Agency Inv Fund1113 25,595,000.00 25,595,000.00 1.17210/31/2017 25,595,000.00 125-33-005 1.172 25,595,000.00 125,595,000.0025,595,000.0025,595,000.00Subtotal and Average 1 1.172 Local Agency Investment Fund-City 1Local Agency Inv Fund1055 40,575,027.18 40,575,027.18 1.17240,509,010.42 198-33-434 1.172 40,575,027.18 140,509,010.4240,575,027.1840,908,360.51Subtotal and Average 1 1.172 Federal Agency Coupon Securities 588Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 987,360.00 7323133EGLC7 1.456 1,370Federal Farm Credit Bank1105 1,000,000.00 992,200.00 09/01/20211.70011/09/2017 985,740.00 1,3923133EHWM1 1.913 1,244Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,424,775.00 1,8263130A7QZ1 1.423 1,060Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,441,450.00 1,4613130A9UQ2 1.375 1,015Federal Home Loan Bank1104 1,000,000.00 996,800.00 09/11/20201.62511/09/2017 990,450.00 1,0373130A66T9 1.741 1,244Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.25004/28/2016 2,475,400.00 1,8263134G8Y37 2.115 1,579Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,973,400.00 1,8263134GBAE2 2.106 1,489Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 988,190.00 1,6373134GBXF4 2.012 1,699Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 989,440.00 1,8263134GBWG3 2.150 787Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,984,620.00 1,0363135G0S53 1.700 16,462,350.00 1,52316,240,825.0016,500,000.0015,931,950.00Subtotal and Average 1,198 1.768 Treasury Coupon Securities 1,307U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,847,250.00 1,808912828S27 1.125 318U.S. Treasury1063 2,500,000.00 2,502,250.00 10/15/20180.87510/24/2016 2,483,600.00 721912828L81 0.829 851U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,473,050.00 1,107912828J84 1.602 744U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,478,625.00 1,000912828U73 1.513 1,430U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,939,840.00 1,679912828T67 1.903 120U.S. Treasury1071 2,000,000.00 1,998,125.00 03/31/20180.87503/27/2017 1,996,720.00 369912828Q45 0.968 Portfolio CITY CP Run Date: 02/07/2018 - 09:10 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 November 30, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Treasury Coupon Securities 349U.S. Treasury1103 500,000.00 498,840.00 11/15/20181.25011/09/2017 497,990.00 371912828M64 1.481 16,916,015.00 1,19816,717,075.0017,000,000.0016,782,991.00Subtotal and Average 857 1.290 Certificate of Deposits 535First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 240,189.60 1,82631938QH72 1.751 720First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 239,236.80 853320165HX4 1.653 333First Merchants Bank1020 240,000.00 240,000.00 10/30/20181.50004/30/2014 240,559.20 1,64432082BDF3 1.501 10First National-Mayfield1044 248,000.00 248,000.00 12/11/20171.00006/11/2015 248,007.44 914330459AY4 1.002 59Third Federal Savings and Loan1038 240,000.00 240,000.00 01/29/20181.25004/29/2014 240,038.40 1,37188413QAN8 1.251 1,777Alliance Credit Union1095 245,000.00 245,000.00 10/13/20222.25010/13/2017 243,711.30 1,82601859BAA3 2.251 388Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 240,098.40 1,09602006LWX7 1.702 1,235Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 239,774.40 1,46102587DP85 2.252 1,732American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 240,048.00 1,82602587CFU9 2.402 1,789Barclays Bank1097 240,000.00 240,000.00 10/25/20222.30010/25/2017 239,186.40 1,82606740KLJ4 2.301 1,452Belmont Savings Bank1102 245,000.00 245,000.00 11/22/20212.10011/21/2017 244,723.15 1,462080515CD9 2.101 150Berkshire Bank1004 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,204.00 1,461084601AL7 1.351 1,546BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 240,050.40 1,82605580AGK4 2.201 1,140Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 238,020.00 1,28006610RAP4 1.804 1,284Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 241,221.60 1,46114042RGD7 2.252 922Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 245,004.90 1,827140420RX0 1.902 108Carolina Alliance1007 248,000.00 248,000.00 03/19/20181.00006/19/2015 247,804.08 1,00414376RAM9 1.000 1,179Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 237,153.60 1,82720033APG5 1.702 256CitiBank1008240,000.00 240,000.00 08/14/20181.90008/14/2013 240,765.60 1,82617284CKN3 1.901 1,321Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 237,859.20 1,46115523RBJ4 1.851 186Compass Bank1010 248,000.00 248,000.00 06/05/20181.35006/05/2015 247,965.28 1,09620451PLG9 1.351 551Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 247,756.96 1,46120786ABD6 1.501 150Cornerstone Community Bank1012 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,024.00 1,461219240AZ1 1.351 150Crescent Bank and Trust1013 240,000.00 240,000.00 04/30/20181.30004/30/2014 239,973.60 1,461225645DC1 1.301 1,813CrossFirst Bank1106 245,000.00 245,000.00 11/18/20222.20011/20/2017 242,807.25 1,82422766ACB9 2.201 1,523Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 240,688.80 1,8262546722U1 2.251 781Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 238,968.00 916259744DS6 1.655 105Embassy National1015 248,000.00 248,000.00 03/16/20181.00006/17/2015 247,945.44 1,003290800AL5 1.000 1,823Enterprise Bank, NA1107 245,000.00 245,000.00 11/28/20222.15011/28/2017 242,135.95 1,82629367QCP1 2.151 515Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 241,068.00 1,826294209AQ4 1.651 917EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 246,512.00 1,82729976DXX3 1.702 431Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 246,903.84 1,341307814DC4 1.252 Portfolio CITY CP Run Date: 02/07/2018 - 09:10 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 535Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 240,192.00 1,827402194EB6 1.724 1,607Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 241,608.00 1,82638148PJK4 2.401 955First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 238,646.40 1,096319141GT8 1.752 1,686HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 240,038.40 1,82640434YLE5 2.300 42Independent Bank1025 248,000.00 248,000.00 01/12/20180.90006/12/2015 248,017.36 94545383UQY4 0.902 893Jefferson Bank & Trust1100 245,000.00 245,000.00 05/12/20201.75011/09/2017 243,946.50 915472376AC6 1.751 1,628Kansas State Bank1101 245,000.00 245,000.00 05/17/20222.10011/17/2017 243,390.35 1,64250116CBE8 2.099 186MB Financial Bank1027 248,000.00 248,000.00 06/05/20181.10006/05/2015 247,823.92 1,09655266CME3 1.101 145Medallion Bank1028 240,000.00 240,000.00 04/25/20181.35004/25/2014 240,031.20 1,46158403BL95 1.351 949Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 238,680.00 1,09658740XZL7 1.750 192MFR Trade & Trust1026 248,000.00 248,000.00 06/11/20181.20006/10/2015 247,759.44 1,097564759QT8 1.033 924Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 246,159.84 1,827063615AVO 1.652 717Morgan Stanley Bank1109 245,000.00 245,000.00 11/18/20191.80011/16/2017 244,941.20 73261747MA92 1.800 376Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,610.64 1,279619165GE7 1.251 159Merrick Bank1029 240,000.00 240,000.00 05/09/20181.35005/09/2014 240,211.20 1,46159012Y6Q5 1.351 717Morgan Stanley Private Bk, NA1108 245,000.00 245,000.00 11/18/20191.75011/16/2017 244,706.00 73261760AEP0 1.750 1,803Mountain America Federal CU1099 245,000.00 245,000.00 11/08/20222.30011/08/2017 244,044.50 1,82662384RAC0 2.301 1,510The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 237,458.40 1,645677721CN0 1.903 543Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 241,063.20 1,826704692AL6 1.801 1,272PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 235,996.80 1,82674267GVG9 1.501 227Regal Bank1033 240,000.00 240,000.00 07/16/20181.40005/16/2014 240,319.20 1,52275874TAH4 1.401 1,088Fist Bank RIchmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 243,160.05 1,251319267GC8 1.802 643Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 247,806.56 1,55376951DAL4 1.402 1,663Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 240,715.20 1,826795450A70 2.351 129South Atlantic1036 248,000.00 248,000.00 04/09/20181.00006/09/2015 247,739.60 1,03583637AAP9 1.001 550Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 247,759.44 1,46183427LAX2 1.401 872Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 238,231.20 1,096857894TC3 1.588 1,644Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 241,363.20 1,82687164XQV1 2.401 508Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 241,034.40 1,82694768NJQ8 1.801 452Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 239,995.20 1,0969497483N5 1.201 15,055,000.00 1,45715,026,854.9915,055,000.0014,209,000.00Subtotal and Average 829 1.696 Corporate Notes 1,342Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 485,920.00 1,514037833CC2 1.900 455Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,983,460.00 702478160BR4 1.305 686Toyota Motor Credit Corp1098 500,000.00 498,750.00 10/18/20191.55011/07/2017 495,975.00 71089236TDH5 1.681 Portfolio CITY CP Run Date: 02/07/2018 - 09:10 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 2,985,000.00 8372,965,355.003,000,000.002,885,250.00Subtotal and Average 640 1.466 Money Market with Fiscal Agent 1US Bank1058 3,495.22 3,495.2207/01/2016 3,495.22 1SYS1058 0.000 3,495.22 13,495.223,495.223,485.94Subtotal and Average 1 0.000 570121,540,702.41 122,743,545.05 397 1.292122,072,638.28 122,606,910.05Total and Average Portfolio CITY CP Run Date: 02/07/2018 - 09:10 PM (PRF_PM2) 7.3.0 Days to Maturity Page 5 Par Value Book Value Stated RateMarket Value November 30, 2017 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 0.00 570121,540,702.41 122,743,545.05 397 1.292 0 0 454.32 454.32 454.32 454.32 Subtotal Accrued Interest at PurchaseAverage Balance 122,073,092.60 122,607,364.37Total Cash and Investments Portfolio CITY CP Run Date: 02/07/2018 - 09:10 PM (PRF_PM2) 7.3.0 City of La Quinta Total Earnings City of La Quinta - Sorted by Fund - Fund November 1, 2017 - November 30, 2017 Current Rate Ending Par Value Ending Fund Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted InterestAnnualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001001240,000.00 1.700ALLY 335.34 0.00 335.341.700101240,000.0002006LWX7 0.00 248,000.001002248,000.00 1.650MIDWES 336.33 0.00 336.331.650101248,000.00063615AVO 0.00 240,000.001004240,000.00 1.350BERKS 266.30 0.00 266.301.350101240,000.00084601AL7 0.00 245,000.001006245,000.00 1.900CAPONE 382.60 0.00 382.601.900101245,000.00140420RX0 0.00 248,000.001007248,000.00 1.000CAROL 203.84 0.00 203.841.000101248,000.0014376RAM9 0.00 240,000.001008240,000.00 1.900CITI 374.80 0.00 374.801.900101240,000.0017284CKN3 0.00 240,000.001009240,000.00 1.700CCBA 335.35 0.00 335.351.700101240,000.0020033APG5 0.00 248,000.001010248,000.00 1.350COMP 275.18 0.00 275.181.350101248,000.0020451PLG9 0.00 248,000.001011248,000.00 1.500CONNEC 305.75 0.00 305.751.500101248,000.0020786ABD6 0.00 240,000.001012240,000.00 1.350CORNER 266.30 0.00 266.301.350101240,000.00219240AZ1 0.00 240,000.001013240,000.00 1.300CRESC 256.44 0.00 256.441.300101240,000.00225645DC1 0.00 248,000.001015248,000.00 1.000EMBNAT 203.84 0.00 203.841.000101248,000.00290800AL5 0.00 240,000.001016240,000.00 1.650EPHRAT 325.48 0.00 325.481.650101240,000.00294209AQ4 0.00 248,000.001017248,000.00 1.700EVRBA 346.52 0.00 346.521.700101248,000.0029976DXX3 0.00 248,000.001018248,000.00 1.250FARMER 254.80 0.00 254.801.250101248,000.00307814DC4 0.00 240,000.001019240,000.00 1.7501STBUS 345.20 0.00 345.201.750101240,000.0031938QH72 0.00 240,000.001020240,000.00 1.5001STMER 295.89 0.00 295.891.500101240,000.0032082BDF3 0.00 240,000.001024240,000.00 1.750GCB 345.21 0.00 345.211.750101240,000.00402194EB6 0.00 248,000.001025248,000.00 0.900INDEP 183.46 0.00 183.460.900101248,000.0045383UQY4 0.00 248,000.001026248,000.00 1.200MFR 244.60 0.00 244.601.200101248,000.00564759QT8 0.00 248,000.001027248,000.00 1.100MBFIN 224.22 0.00 224.221.100101248,000.0055266CME3 0.00 240,000.001028240,000.00 1.350MEDBA 266.30 0.00 266.301.350101240,000.0058403BL95 0.00 240,000.001029240,000.00 1.350MRRCK 266.30 0.00 266.301.350101240,000.0059012Y6Q5 0.00 248,000.001030248,000.00 1.250MORTN 254.80 0.00 254.801.250101248,000.00619165GE7 0.00 240,000.001031240,000.00 1.800PEAPAC 355.07 0.00 355.071.800101240,000.00704692AL6 0.00 240,000.001032240,000.00 1.500PRVTBA 295.89 0.00 295.891.500101240,000.0074267GVG9 0.00 240,000.001033240,000.00 1.400REGAL 276.17 0.00 276.171.400101240,000.0075874TAH4 0.00 248,000.001034248,000.00 1.400RVRW 285.37 0.00 285.371.400101248,000.0076951DAL4 0.00 248,000.001035248,000.00 1.400SOLOM 285.37 0.00 285.371.400101248,000.0083427LAX2 0.00 248,000.001036248,000.00 1.000SOATL 203.84 0.00 203.841.000101248,000.0083637AAP9 0.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:19 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 2 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest November 1, 2017 - November 30, 2017 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001038240,000.00 1.2503RD 246.57 0.00 246.571.250101240,000.0088413QAN8 0.00 0.0010400.00 1.100TRAV 209.75 0.00 209.751.100101240,000.00894333FE8 0.00 240,000.001042240,000.00 1.800WEB 355.07 0.00 355.071.800101240,000.0094768NJQ8 0.00 240,000.001043240,000.00 1.200WELLS 236.71 0.00 236.711.200101240,000.009497483N5 0.00 248,000.001044248,000.00 1.0001STNAT 203.84 0.00 203.841.000101248,000.00330459AY4 0.00 5,000,000.0010455,000,000.00 1.125USTR 4,585.60 0.00 4,585.601.1161015,000,000.00912828S27 0.00 2,491,250.0010532,500,000.00 1.350FHLB 2,812.50 0.00 2,812.501.3741012,491,250.003130A7QZ1 0.00 2,500,000.0010542,500,000.00 1.250FHLMC 2,604.16 0.00 2,604.161.2671012,500,000.003134G8Y37 0.00 40,575,027.18105540,575,027.18 1.172LAIF 40,513.05 0.00 40,513.051.20510145,575,027.1898-33-434 0.00 3,695,123.0710573,695,123.07WELLS 0.01 0.00 0.011013,046,653.144159282482 0.00 1,700.0010591,700.00CITYPC 0.00 0.00 0.001011,700.00SYS1059 0.00 2,502,250.0010632,500,000.00 0.875USTR 1,802.89 0.00 1,802.890.8771012,502,250.00912828L81 0.00 2,500,000.0010642,500,000.00 1.375FHLB 2,864.58 0.00 2,864.581.3941012,500,000.003130A9UQ2 0.00 240,000.001066240,000.00 2.250DISCOV 443.84 0.00 443.842.250101240,000.002546722U1 0.00 240,000.001067240,000.00 2.200BMW 433.97 0.00 433.972.200101240,000.0005580AGK4 0.00 2,483,250.0010682,500,000.00 1.375USTR 2,833.10 0.00 2,833.101.3881012,483,250.00912828J84 0.00 2,490,750.0010692,500,000.00 1.375USTR 2,817.62 0.00 2,817.621.3761012,490,750.00912828U73 0.00 1,942,800.0010702,000,000.00 1.250USTR 2,071.82 0.00 2,071.821.2971011,942,800.00912828T67 0.00 1,998,125.0010712,000,000.00 0.875USTR 1,442.31 0.00 1,442.310.8781011,998,125.00912828Q45 0.00 2,000,000.0010722,000,000.00 1.700FNMA 2,833.33 0.00 2,833.331.7241012,000,000.003135G0S53 0.00 1,990,000.0010732,000,000.00 2.000FHLMC 3,333.33 0.00 3,333.332.0381011,990,000.003134GBAE2 0.00 1,993,200.0010752,000,000.00 1.125J&J 1,875.00 0.00 1,875.001.1451011,993,200.00478160BR4 0.00 240,000.001076240,000.00 1.600STRNS 315.61 0.00 315.611.600101240,000.00857894TC3 0.00 240,000.001077240,000.00 2.250AMEX 443.83 0.00 443.832.250101240,000.0002587DP85 0.00 240,000.001078240,000.00 2.400GLDMAN 473.42 0.00 473.422.400101240,000.0038148PJK4 0.00 493,050.001079500,000.00 1.550APPL 645.83 0.00 645.831.594101493,050.00037833CC2 0.00 240,000.001080240,000.00 2.400SYNCHR 473.43 0.00 473.432.400101240,000.0087164XQV1 0.00 245,000.001081245,000.00 1.800RICHMN 362.47 0.00 362.471.800101245,000.00319267GC8 0.00 240,000.001082240,000.00 2.250CAP1NA 443.84 0.00 443.842.250101240,000.0014042RGD7 0.00 240,000.001083240,000.00 2.350SALMAE 446.48 0.00 446.482.263101240,000.00795450A70 0.00 999,500.0010841,000,000.00 2.000FHLMC 1,666.67 0.00 1,666.672.029101999,500.003134GBXF4 0.00 240,000.001085240,000.00 1.850CNTRL 364.93 0.00 364.931.850101240,000.0015523RBJ4 0.00 240,000.001086240,000.00 1.800BNKRS 355.07 0.00 355.071.800101240,000.0006610RAP4 0.00 240,000.001087240,000.00 1.750MERCTL 342.39 0.00 342.391.736101240,000.0058740XZL7 0.00 240,000.001088240,000.00 2.300HSBC 450.00 0.00 450.002.281101240,000.0040434YLE5 0.00 240,000.001089240,000.00 1.900OHVAL 374.80 0.00 374.801.900101240,000.00677721CN0 0.00 1,000,000.0010901,000,000.00 2.150FHLMC 1,791.67 0.00 1,791.672.1801011,000,000.003134GBWG3 0.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:19 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 3 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest November 1, 2017 - November 30, 2017 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001091240,000.00 1.6501STFRM 325.48 0.00 325.481.650101240,000.00320165HX4 0.00 992,600.0010921,000,000.00 1.080FFCB 900.00 0.00 900.001.103101992,600.003133EGLC7 0.00 240,000.001093240,000.00 1.650DOUGLS 325.48 0.00 325.481.650101240,000.00259744DS6 0.00 240,000.001094240,000.00 1.750HIGHLD 345.21 0.00 345.211.750101240,000.00319141GT8 0.00 245,000.001095245,000.00 2.250ALLIAN 453.08 0.00 453.082.250101245,000.0001859BAA3 0.00 240,000.001096240,000.00 2.400AMFSB 473.43 0.00 473.432.400101240,000.0002587CFU9 0.00 240,000.001097240,000.00 2.300BARCLY 453.70 0.00 453.702.300101240,000.0006740KLJ4 0.00 498,750.001098500,000.00 1.550TOYOTA 516.66 0.00 516.661.5751010.0089236TDH5 0.00 245,000.001099245,000.00 2.300MTNAMR 339.64 0.00 339.642.3001010.0062384RAC0 0.00 245,000.001100245,000.00 1.750JFFRSN 258.42 0.00 258.421.7501010.00472376AC6 0.00 245,000.001101245,000.00 2.100KANSAS 183.25 0.00 183.252.1001010.0050116CBE8 0.00 245,000.001102245,000.00 2.100BELMNT 126.86 0.00 126.862.1001010.00080515CD9 0.00 498,840.001103500,000.00 1.250USTR 378.14 0.00 378.141.2581010.00912828M64 0.00 996,800.0011041,000,000.00 1.625FHLB 993.05 0.00 993.051.6531010.003130A66T9 0.00 992,200.0011051,000,000.00 1.700FFCB 1,038.89 0.00 1,038.891.7371010.003133EHWM1 0.00 245,000.001106245,000.00 2.200CRS1ST 147.67 0.00 147.672.2001010.0022766ACB9 0.00 245,000.001107245,000.00 2.150ENTRPR 28.86 0.00 28.862.1501010.0029367QCP1 0.00 245,000.001108245,000.00 1.750MSPRIV 176.20 0.00 176.201.7501010.0061760AEP0 0.00 245,000.001109245,000.00 1.800MORGST 181.23 0.00 181.231.8001010.0061747MA92 0.00 95,826,850.25Subtotal 95,690,215.25 1.294 99,711.300.0099,711.3095,335,155.32 0.00 Fund: 1st Empire Securities Cash Bal 0.0010600.00EMPIRE 115.02 0.00 115.020.15710210.85SYS1060 0.00 0.00Subtotal 0.00 0.157 115.020.00115.0210.85 0.00 Fund: Fiscal Agent 3,495.2210583,495.22USBANK 9.60 0.00 9.603.3512313,485.62SYS1058 0.00 3,495.22Subtotal 3,495.22 3.351 9.600.009.603,485.62 0.00 Fund: Housing Authority : WSA and LQ 1,172,628.1310611,172,628.13WSALQ 0.00 0.00 0.002411,126,155.35SYS1061 0.00 145,571.451062145,571.45LQPR 0.00 0.00 0.00241133,595.57SYS1062 0.00 1,318,199.58Subtotal 1,318,199.58 0.000.000.001,259,750.92 0.00 Fund: SA Low/Mod Bond Fund 25,595,000.00111325,595,000.00 1.172LAIF 24,065.61 0.00 24,065.611.14424925,595,000.0025-33-005 0.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:19 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 4 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest November 1, 2017 - November 30, 2017 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss 25,595,000.00Subtotal 25,595,000.00 1.144 24,065.610.0024,065.6125,595,000.00 0.00 122,743,545.05Total 122,606,910.05 1.240 123,901.530.00123,901.53122,193,402.71 0.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:19 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Bank Accounts 1City Petty Cash1059 1,700.00 1,700.0007/01/2016 1,700.00 1SYS1059 0.000 1First Empire Bank1060 59,733.73 59,733.7307/01/2016 59,733.73 1SYS1060 0.000 1La Quinta Palms Realty1062 158,447.30 158,447.3007/01/2016 158,447.30 1SYS1062 0.000 1Wells Fargo1057 1,359,875.09 1,359,875.0907/01/2016 1,359,875.09 14159282482 0.000 1Washington St Apt La Quinta1061 1,150,132.13 1,150,132.1307/01/2016 1,150,132.13 1SYS1061 0.000 2,729,888.25 12,729,888.252,729,888.255,029,465.95Subtotal and Average 1 0.000 Local Agency Invstmnt Fund-Housing 1Local Agency Inv Fund1113 25,595,000.00 25,595,000.00 1.23910/31/2017 25,595,000.00 125-33-005 1.239 25,595,000.00 125,595,000.0025,595,000.0025,595,000.00Subtotal and Average 1 1.239 Local Agency Investment Fund-City 1Local Agency Inv Fund1055 43,575,027.18 43,575,027.18 1.23943,509,010.42 198-33-434 1.239 43,575,027.18 143,509,010.4243,575,027.1840,316,962.66Subtotal and Average 1 1.239 Federal Agency Coupon Securities 557Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 986,670.00 7323133EGLC7 1.456 1,339Federal Farm Credit Bank1105 1,000,000.00 992,200.00 09/01/20211.70011/09/2017 984,730.00 1,3923133EHWM1 1.913 1,213Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,422,075.00 1,8263130A7QZ1 1.423 1,029Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,439,250.00 1,4613130A9UQ2 1.375 984Federal Home Loan Bank1104 1,000,000.00 996,800.00 09/11/20201.62511/09/2017 989,040.00 1,0373130A66T9 1.741 1,213Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.25004/28/2016 2,473,850.00 1,8263134G8Y37 2.115 1,548Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,970,320.00 1,8263134GBAE2 2.106 1,458Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 986,750.00 1,6373134GBXF4 2.012 1,668Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 987,710.00 1,8263134GBWG3 2.150 756Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,981,680.00 1,0363135G0S53 1.700 16,462,350.00 1,52316,222,075.0016,500,000.0016,462,350.00Subtotal and Average 1,167 1.768 Treasury Coupon Securities 1,276U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,842,200.00 1,808912828S27 1.125 287U.S. Treasury1063 2,500,000.00 2,502,250.00 10/15/20180.87510/24/2016 2,483,800.00 721912828L81 0.829 820U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,470,700.00 1,107912828J84 1.602 713U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,475,400.00 1,000912828U73 1.513 1,399U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,937,500.00 1,679912828T67 1.903 89U.S. Treasury1071 2,000,000.00 1,998,125.00 03/31/20180.87503/27/2017 1,997,500.00 369912828Q45 0.968 Portfolio CITY CP Run Date: 02/07/2018 - 09:12 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 December 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Treasury Coupon Securities 318U.S. Treasury1103 500,000.00 498,840.00 11/15/20181.25011/09/2017 497,715.00 371912828M64 1.481 16,916,015.00 1,19816,704,815.0017,000,000.0016,916,015.00Subtotal and Average 826 1.290 Certificate of Deposits 504First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 239,690.40 1,82631938QH72 1.751 689First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 238,507.20 853320165HX4 1.653 302First Merchants Bank1020 240,000.00 240,000.00 10/30/20181.50004/30/2014 240,309.60 1,64432082BDF3 1.501 28Third Federal Savings and Loan1038 240,000.00 240,000.00 01/29/20181.25004/29/2014 240,000.00 1,37188413QAN8 1.251 1,746Alliance Credit Union1095 245,000.00 245,000.00 10/13/20222.25010/13/2017 242,665.15 1,82601859BAA3 2.251 357Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 239,791.20 1,09602006LWX7 1.702 1,204Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 238,924.80 1,46102587DP85 2.252 1,701American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 238,780.80 1,82602587CFU9 2.402 1,758Barclays Bank1097 240,000.00 240,000.00 10/25/20222.30010/25/2017 238,154.40 1,82606740KLJ4 2.301 1,421Belmont Savings Bank1102 245,000.00 245,000.00 11/22/20212.10011/21/2017 243,525.10 1,462080515CD9 2.101 119Berkshire Bank1004 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,076.80 1,461084601AL7 1.351 1,515BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 238,975.20 1,82605580AGK4 2.201 1,109Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 237,254.40 1,28006610RAP4 1.804 1,253Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 240,218.40 1,46114042RGD7 2.252 891Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 244,181.70 1,827140420RX0 1.902 77Carolina Alliance1007 248,000.00 248,000.00 03/19/20181.00006/19/2015 247,804.08 1,00414376RAM9 1.000 1,148Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 236,366.40 1,82720033APG5 1.702 225CitiBank1008240,000.00 240,000.00 08/14/20181.90008/14/2013 240,511.20 1,82617284CKN3 1.901 1,290Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 236,887.20 1,46115523RBJ4 1.851 155Compass Bank1010 248,000.00 248,000.00 06/05/20181.35006/05/2015 247,848.72 1,09620451PLG9 1.351 520Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 247,241.12 1,46120786ABD6 1.501 119Cornerstone Community Bank1012 240,000.00 240,000.00 04/30/20181.35004/30/2014 239,930.40 1,461219240AZ1 1.351 119Crescent Bank and Trust1013 240,000.00 240,000.00 04/30/20181.30004/30/2014 239,892.00 1,461225645DC1 1.301 1,782CrossFirst Bank1106 245,000.00 245,000.00 11/18/20222.20011/20/2017 241,778.25 1,82422766ACB9 2.201 1,492Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 239,599.20 1,8262546722U1 2.251 750Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 238,188.00 916259744DS6 1.655 74Embassy National1015 248,000.00 248,000.00 03/16/20181.00006/17/2015 247,915.68 1,003290800AL5 1.000 1,792Enterprise Bank, NA1107 245,000.00 245,000.00 11/28/20222.15011/28/2017 241,121.65 1,82629367QCP1 2.151 484Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 240,542.40 1,826294209AQ4 1.651 886EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 245,723.36 1,82729976DXX3 1.702 400Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 246,606.24 1,341307814DC4 1.252 1,086Freedom Credit Union1111 245,000.00 245,000.00 12/22/20202.05012/22/2017 244,071.45 1,09635638BAA9 2.052 Portfolio CITY CP Run Date: 02/07/2018 - 09:12 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 504Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 239,690.40 1,827402194EB6 1.724 1,576Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 240,501.60 1,82638148PJK4 2.401 924First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 237,897.60 1,096319141GT8 1.752 1,655HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 238,975.20 1,82640434YLE5 2.300 11Independent Bank1025 248,000.00 248,000.00 01/12/20180.90006/12/2015 247,990.08 94545383UQY4 0.902 862Jefferson Bank & Trust1100 245,000.00 245,000.00 05/12/20201.75011/09/2017 243,150.25 915472376AC6 1.751 1,597Kansas State Bank1101 245,000.00 245,000.00 05/17/20222.10011/17/2017 242,322.15 1,64250116CBE8 2.099 1,823Knoxville TVA Credit Union1110 245,000.00 245,000.00 12/29/20222.40012/29/2017 243,699.05 1,826499724AB8 2.402 155MB Financial Bank1027 248,000.00 248,000.00 06/05/20181.10006/05/2015 247,732.16 1,09655266CME3 1.101 114Medallion Bank1028 240,000.00 240,000.00 04/25/20181.35004/25/2014 239,940.00 1,46158403BL95 1.351 918Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 237,928.80 1,09658740XZL7 1.750 161MFR Trade & Trust1026 248,000.00 248,000.00 06/11/20181.20006/10/2015 247,665.20 1,097564759QT8 1.033 893Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 245,383.60 1,827063615AVO 1.652 686Morgan Stanley Bank1109 245,000.00 245,000.00 11/18/20191.80011/16/2017 244,176.80 73261747MA92 1.800 345Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,365.12 1,279619165GE7 1.251 128Merrick Bank1029 240,000.00 240,000.00 05/09/20181.35005/09/2014 240,079.20 1,46159012Y6Q5 1.351 686Morgan Stanley Private Bk, NA1108 245,000.00 245,000.00 11/18/20191.75011/16/2017 243,948.95 73261760AEP0 1.750 1,772Mountain America Federal CU1099 245,000.00 245,000.00 11/08/20222.30011/08/2017 242,993.45 1,82662384RAC0 2.301 1,479The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 236,431.20 1,645677721CN0 1.903 512Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 240,504.00 1,826704692AL6 1.801 1,241PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 235,130.40 1,82674267GVG9 1.501 196Regal Bank1033 240,000.00 240,000.00 07/16/20181.40005/16/2014 240,122.40 1,52275874TAH4 1.401 1,057Fist Bank RIchmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 242,466.70 1,251319267GC8 1.802 612Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 247,151.84 1,55376951DAL4 1.402 1,632Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 239,635.20 1,826795450A70 2.351 98South Atlantic1036 248,000.00 248,000.00 04/09/20181.00006/09/2015 247,719.76 1,03583637AAP9 1.001 519Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 247,243.60 1,46183427LAX2 1.401 841Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 237,472.80 1,096857894TC3 1.588 1,613Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 240,266.40 1,82687164XQV1 2.401 477Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 240,518.40 1,82694768NJQ8 1.801 421Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 239,611.20 1,0969497483N5 1.201 15,297,000.00 1,46615,228,796.0115,297,000.0014,989,741.94Subtotal and Average 832 1.724 Corporate Notes 1,311Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 485,760.00 1,514037833CC2 1.900 424Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,979,920.00 702478160BR4 1.305 Portfolio CITY CP Run Date: 02/07/2018 - 09:12 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2017 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Corporate Notes 655Toyota Motor Credit Corp1098 500,000.00 498,750.00 10/18/20191.55011/07/2017 495,560.00 71089236TDH5 1.681 2,985,000.00 8372,961,240.003,000,000.002,985,000.00Subtotal and Average 609 1.466 Money Market with Fiscal Agent 1US Bank1058 3,496.57 3,496.5707/01/2016 3,496.57 1SYS1058 0.000 3,496.57 13,496.573,496.573,495.26Subtotal and Average 1 0.000 Managed Pool Accounts-OPEB Trust 1CalPERS CERBT Plan1114 1,523,400.00 1,523,400.0012/18/2017 1,523,400.00 1SYS1114 0.000 1,523,400.00 11,523,400.001,523,400.00687,987.10Subtotal and Average 1 0.000 562122,986,017.91 125,223,812.00 382 1.338124,477,721.25 125,087,177.00Total and Average Portfolio CITY CP Run Date: 02/07/2018 - 09:12 PM (PRF_PM2) 7.3.0 Days to Maturity Page 5 Par Value Book Value Stated RateMarket Value December 31, 2017 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 0.00 562122,986,017.91 125,223,812.00 382 1.338 0 0 120.99 120.99 120.99 120.99 Subtotal Accrued Interest at PurchaseAverage Balance 124,477,842.24 125,087,297.99Total Cash and Investments Portfolio CITY CP Run Date: 02/07/2018 - 09:12 PM (PRF_PM2) 7.3.0 City of La Quinta Total Earnings City of La Quinta - Sorted by Fund - Fund December 1, 2017 - December 31, 2017 Current Rate Ending Par Value Ending Fund Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted InterestAnnualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001001240,000.00 1.700ALLY 346.52 0.00 346.521.700101240,000.0002006LWX7 0.00 248,000.001002248,000.00 1.650MIDWES 347.54 0.00 347.541.650101248,000.00063615AVO 0.00 240,000.001004240,000.00 1.350BERKS 275.18 0.00 275.181.350101240,000.00084601AL7 0.00 245,000.001006245,000.00 1.900CAPONE 395.36 0.00 395.361.900101245,000.00140420RX0 0.00 248,000.001007248,000.00 1.000CAROL 210.63 0.00 210.631.000101248,000.0014376RAM9 0.00 240,000.001008240,000.00 1.900CITI 387.28 0.00 387.281.900101240,000.0017284CKN3 0.00 240,000.001009240,000.00 1.700CCBA 346.52 0.00 346.521.700101240,000.0020033APG5 0.00 248,000.001010248,000.00 1.350COMP 284.35 0.00 284.351.350101248,000.0020451PLG9 0.00 248,000.001011248,000.00 1.500CONNEC 315.95 0.00 315.951.500101248,000.0020786ABD6 0.00 240,000.001012240,000.00 1.350CORNER 275.18 0.00 275.181.350101240,000.00219240AZ1 0.00 240,000.001013240,000.00 1.300CRESC 264.98 0.00 264.981.300101240,000.00225645DC1 0.00 248,000.001015248,000.00 1.000EMBNAT 210.63 0.00 210.631.000101248,000.00290800AL5 0.00 240,000.001016240,000.00 1.650EPHRAT 336.33 0.00 336.331.650101240,000.00294209AQ4 0.00 248,000.001017248,000.00 1.700EVRBA 358.07 0.00 358.071.700101248,000.0029976DXX3 0.00 248,000.001018248,000.00 1.250FARMER 263.28 0.00 263.281.250101248,000.00307814DC4 0.00 240,000.001019240,000.00 1.7501STBUS 356.71 0.00 356.711.750101240,000.0031938QH72 0.00 240,000.001020240,000.00 1.5001STMER 305.75 0.00 305.751.500101240,000.0032082BDF3 0.00 240,000.001024240,000.00 1.750GCB 356.71 0.00 356.711.750101240,000.00402194EB6 0.00 248,000.001025248,000.00 0.900INDEP 189.56 0.00 189.560.900101248,000.0045383UQY4 0.00 248,000.001026248,000.00 1.200MFR 252.76 0.00 252.761.200101248,000.00564759QT8 0.00 248,000.001027248,000.00 1.100MBFIN 231.69 0.00 231.691.100101248,000.0055266CME3 0.00 240,000.001028240,000.00 1.350MEDBA 275.18 0.00 275.181.350101240,000.0058403BL95 0.00 240,000.001029240,000.00 1.350MRRCK 275.18 0.00 275.181.350101240,000.0059012Y6Q5 0.00 248,000.001030248,000.00 1.250MORTN 263.28 0.00 263.281.250101248,000.00619165GE7 0.00 240,000.001031240,000.00 1.800PEAPAC 366.90 0.00 366.901.800101240,000.00704692AL6 0.00 240,000.001032240,000.00 1.500PRVTBA 305.75 0.00 305.751.500101240,000.0074267GVG9 0.00 240,000.001033240,000.00 1.400REGAL 285.37 0.00 285.371.400101240,000.0075874TAH4 0.00 248,000.001034248,000.00 1.400RVRW 294.88 0.00 294.881.400101248,000.0076951DAL4 0.00 248,000.001035248,000.00 1.400SOLOM 294.88 0.00 294.881.400101248,000.0083427LAX2 0.00 248,000.001036248,000.00 1.000SOATL 210.63 0.00 210.631.000101248,000.0083637AAP9 0.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:21 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 2 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest December 1, 2017 - December 31, 2017 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001038240,000.00 1.2503RD 254.80 0.00 254.801.250101240,000.0088413QAN8 0.00 240,000.001042240,000.00 1.800WEB 366.91 0.00 366.911.800101240,000.0094768NJQ8 0.00 240,000.001043240,000.00 1.200WELLS 244.61 0.00 244.611.200101240,000.009497483N5 0.00 0.0010440.00 1.0001STNAT 67.94 0.00 67.941.000101248,000.00330459AY4 0.00 5,000,000.0010455,000,000.00 1.125USTR 4,740.99 0.00 4,740.991.1161015,000,000.00912828S27 0.00 2,491,250.0010532,500,000.00 1.350FHLB 2,812.50 0.00 2,812.501.3291012,491,250.003130A7QZ1 0.00 2,500,000.0010542,500,000.00 1.250FHLMC 2,604.17 0.00 2,604.171.2261012,500,000.003134G8Y37 0.00 43,575,027.18105543,575,027.18 1.239LAIF 41,258.27 0.00 41,258.271.20510140,575,027.1898-33-434 0.00 1,359,875.0910571,359,875.09WELLS 0.01 0.00 0.011013,695,123.074159282482 0.00 1,700.0010591,700.00CITYPC 0.00 0.00 0.001011,700.00SYS1059 0.00 2,502,250.0010632,500,000.00 0.875USTR 1,862.98 0.00 1,862.980.8771012,502,250.00912828L81 0.00 2,500,000.0010642,500,000.00 1.375FHLB 2,864.59 0.00 2,864.591.3491012,500,000.003130A9UQ2 0.00 240,000.001066240,000.00 2.250DISCOV 458.63 0.00 458.632.250101240,000.002546722U1 0.00 240,000.001067240,000.00 2.200BMW 448.44 0.00 448.442.200101240,000.0005580AGK4 0.00 2,483,250.0010682,500,000.00 1.375USTR 2,927.54 0.00 2,927.541.3881012,483,250.00912828J84 0.00 2,490,750.0010692,500,000.00 1.375USTR 2,920.32 0.00 2,920.321.3801012,490,750.00912828U73 0.00 1,942,800.0010702,000,000.00 1.250USTR 2,140.89 0.00 2,140.891.2971011,942,800.00912828T67 0.00 1,998,125.0010712,000,000.00 0.875USTR 1,490.38 0.00 1,490.380.8781011,998,125.00912828Q45 0.00 2,000,000.0010722,000,000.00 1.700FNMA 2,833.33 0.00 2,833.331.6681012,000,000.003135G0S53 0.00 1,990,000.0010732,000,000.00 2.000FHLMC 3,333.33 0.00 3,333.331.9721011,990,000.003134GBAE2 0.00 1,993,200.0010752,000,000.00 1.125J&J 1,875.00 0.00 1,875.001.1081011,993,200.00478160BR4 0.00 240,000.001076240,000.00 1.600STRNS 326.14 0.00 326.141.600101240,000.00857894TC3 0.00 240,000.001077240,000.00 2.250AMEX 458.63 0.00 458.632.250101240,000.0002587DP85 0.00 240,000.001078240,000.00 2.400GLDMAN 489.21 0.00 489.212.400101240,000.0038148PJK4 0.00 493,050.001079500,000.00 1.550APPL 645.83 0.00 645.831.542101493,050.00037833CC2 0.00 240,000.001080240,000.00 2.400SYNCHR 489.21 0.00 489.212.400101240,000.0087164XQV1 0.00 245,000.001081245,000.00 1.800RICHMN 374.55 0.00 374.551.800101245,000.00319267GC8 0.00 240,000.001082240,000.00 2.250CAP1NA 458.63 0.00 458.632.250101240,000.0014042RGD7 0.00 240,000.001083240,000.00 2.350SALMAE 467.63 0.00 467.632.294101240,000.00795450A70 0.00 999,500.0010841,000,000.00 2.000FHLMC 1,666.67 0.00 1,666.671.963101999,500.003134GBXF4 0.00 240,000.001085240,000.00 1.850CNTRL 377.10 0.00 377.101.850101240,000.0015523RBJ4 0.00 240,000.001086240,000.00 1.800BNKRS 366.90 0.00 366.901.800101240,000.0006610RAP4 0.00 240,000.001087240,000.00 1.750MERCTL 353.80 0.00 353.801.736101240,000.0058740XZL7 0.00 240,000.001088240,000.00 2.300HSBC 465.00 0.00 465.002.281101240,000.0040434YLE5 0.00 240,000.001089240,000.00 1.900OHVAL 387.28 0.00 387.281.900101240,000.00677721CN0 0.00 1,000,000.0010901,000,000.00 2.150FHLMC 1,791.66 0.00 1,791.662.1101011,000,000.003134GBWG3 0.00 240,000.001091240,000.00 1.6501STFRM 336.33 0.00 336.331.650101240,000.00320165HX4 0.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:21 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 3 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest December 1, 2017 - December 31, 2017 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 992,600.0010921,000,000.00 1.080FFCB 900.00 0.00 900.001.068101992,600.003133EGLC7 0.00 240,000.001093240,000.00 1.650DOUGLS 336.33 0.00 336.331.650101240,000.00259744DS6 0.00 240,000.001094240,000.00 1.750HIGHLD 356.71 0.00 356.711.750101240,000.00319141GT8 0.00 245,000.001095245,000.00 2.250ALLIAN 468.19 0.00 468.192.250101245,000.0001859BAA3 0.00 240,000.001096240,000.00 2.400AMFSB 489.20 0.00 489.202.400101240,000.0002587CFU9 0.00 240,000.001097240,000.00 2.300BARCLY 468.82 0.00 468.822.300101240,000.0006740KLJ4 0.00 498,750.001098500,000.00 1.550TOYOTA 645.84 0.00 645.841.525101498,750.0089236TDH5 0.00 245,000.001099245,000.00 2.300MTNAMR 478.59 0.00 478.592.300101245,000.0062384RAC0 0.00 245,000.001100245,000.00 1.750JFFRSN 364.15 0.00 364.151.750101245,000.00472376AC6 0.00 245,000.001101245,000.00 2.100KANSAS 436.97 0.00 436.972.100101245,000.0050116CBE8 0.00 245,000.001102245,000.00 2.100BELMNT 436.98 0.00 436.982.100101245,000.00080515CD9 0.00 498,840.001103500,000.00 1.250USTR 535.22 0.00 535.221.263101498,840.00912828M64 0.00 996,800.0011041,000,000.00 1.625FHLB 1,354.17 0.00 1,354.171.600101996,800.003130A66T9 0.00 992,200.0011051,000,000.00 1.700FFCB 1,416.67 0.00 1,416.671.681101992,200.003133EHWM1 0.00 245,000.001106245,000.00 2.200CRS1ST 457.78 0.00 457.782.200101245,000.0022766ACB9 0.00 245,000.001107245,000.00 2.150ENTRPR 447.38 0.00 447.382.150101245,000.0029367QCP1 0.00 245,000.001108245,000.00 1.750MSPRIV 364.14 0.00 364.141.750101245,000.0061760AEP0 0.00 245,000.001109245,000.00 1.800MORGST 374.55 0.00 374.551.800101245,000.0061747MA92 0.00 245,000.001110245,000.00 2.400KNOX 48.33 0.00 48.332.4001010.00499724AB8 0.00 245,000.001111245,000.00 2.050FREECU 137.60 0.00 137.602.0501010.0035638BAA9 0.00 1,523,400.0011141,523,400.00CALPRS 0.00 0.00 0.001010.00SYS1114 0.00 98,257,002.27Subtotal 98,120,367.27 1.280 104,360.850.00104,360.8595,690,215.25 0.00 Fund: 1st Empire Securities Cash Bal 59,733.73106059,733.73EMPIRE 31.05 0.00 31.050.4031020.00SYS1060 0.00 59,733.73Subtotal 59,733.73 0.403 31.050.0031.050.00 0.00 Fund: Fiscal Agent 3,496.5710583,496.57USBANK 1.35 0.00 1.350.4552313,495.22SYS1058 0.00 3,496.57Subtotal 3,496.57 0.455 1.350.001.353,495.22 0.00 Fund: Housing Authority : WSA and LQ 1,150,132.1310611,150,132.13WSALQ 0.00 0.00 0.002411,172,628.13SYS1061 0.00 158,447.301062158,447.30LQPR 0.00 0.00 0.00241145,571.45SYS1062 0.00 1,308,579.43Subtotal 1,308,579.43 0.000.000.001,318,199.58 0.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:21 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 4 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest December 1, 2017 - December 31, 2017 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: SA Low/Mod Bond Fund 25,595,000.00111325,595,000.00 1.239LAIF 25,524.18 0.00 25,524.181.17424925,595,000.0025-33-005 0.00 25,595,000.00Subtotal 25,595,000.00 1.174 25,524.180.0025,524.1825,595,000.00 0.00 125,223,812.00Total 125,087,177.00 1.244 129,917.430.00129,917.43122,606,910.05 0.00 Portfolio CITY CP Run Date: 01/30/2018 - 16:21 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 City of La Quinta -City of La Quinta Maturity Report Sorted by Maturity Date Received or due during October 1, 2017 - December 31, 2017 Rate at MaturityPar Value Sec. TypeFund Maturity Date Maturity ProceedsInterest Income Net CUSIP Investment #Issuer Purchase Date Book Value at Maturity 240,000.00 1.100 240,224.22224.2205/30/2014TRAV1040894333FE8MC110111/30/2017 224.22240,000.00 248,000.00 1.000 248,203.84203.8406/11/20151STNAT1044330459AY4MC110112/11/2017 203.84248,000.00 488,428.06Total Maturities 488,000.00 428.06488,000.00 428.06 Portfolio CITY CP Run Date: 01/30/2018 - 16:37 MA (PRF_MA) 7.1.1 Report Ver. 7.3.6.1 City of La Quinta -City of La Quinta Purchases Report Sorted by Fund - Fund October 1, 2017 - December 31, 2017 Original Par Value Ending Book Value Sec. TypeFund Maturity YTM Accrued Interest at PurchasePayment Periods DateCUSIPInvestment #Issuer Purchase Date Principal Purchased Rate at Purchase General Fund 245,000.00 2.250 10/13/2022 245,000.00245,000.0010/13/2017 2.25104/13 - 10/13ALLIAN109501859BAA3MC1101 240,000.00 2.300 10/25/2022 240,000.00240,000.00 120.9910/25/2017 2.30104/17 - 10/17BARCLY109706740KLJ4MC1101 500,000.00 1.550 10/18/2019 498,750.00498,750.00 Received11/07/2017 1.68104/18 - 10/18TOYOTA109889236TDH5MC2101 245,000.00 2.300 11/08/2022 245,000.00245,000.0011/08/2017 2.30112/08 - MonthlyMTNAMR109962384RAC0MC1101 1,000,000.00 1.700 09/01/2021 992,200.00992,200.00 Received11/09/2017 1.91303/01 - 09/01FFCB11053133EHWM1FAC101 1,000,000.00 1.625 09/11/2020 996,800.00996,800.00 Received11/09/2017 1.74103/11 - 09/11FHLB11043130A66T9FAC101 245,000.00 1.750 05/12/2020 245,000.00245,000.0011/09/2017 1.75102/09 - QuarterlyJFFRSN1100472376AC6MC1101 500,000.00 1.250 11/15/2018 498,840.00498,840.00 Received11/09/2017 1.48111/15 - 05/15USTR1103912828M64TRC101 245,000.00 1.800 11/18/2019 245,000.00245,000.0011/16/2017 1.80005/16 - 11/16MORGST110961747MA92MC1101 245,000.00 1.750 11/18/2019 245,000.00245,000.0011/16/2017 1.75005/16 - 11/16MSPRIV110861760AEP0MC1101 245,000.00 2.100 05/17/2022 245,000.00245,000.0011/17/2017 2.09912/17 - MonthlyKANSAS110150116CBE8MC1101 245,000.00 2.200 11/18/2022 245,000.00245,000.0011/20/2017 2.20112/20 - MonthlyCRS1ST110622766ACB9MC1101 245,000.00 2.100 11/22/2021 245,000.00245,000.0011/21/2017 2.10112/21 - MonthlyBELMNT1102080515CD9MC1101 245,000.00 2.150 11/28/2022 245,000.00245,000.0011/28/2017 2.15112/28 - MonthlyENTRPR110729367QCP1MC1101 1,523,400.00 1,523,400.001,523,400.0012/18/2017 12/31 - MonthlyCALPRS1114SYS1114LA2101 245,000.00 2.050 12/22/2020 245,000.00245,000.0012/22/2017 2.05206/22 - 12/22FREECU111135638BAA9MC1101 245,000.00 2.400 12/29/2022 245,000.00245,000.0012/29/2017 2.40202/01 - MonthlyKNOX1110499724AB8MC1101 Subtotal 7,444,990.007,444,990.00 120.997,458,400.00 SA Low/Mod Bond Fund 25,595,000.00 25,595,000.0025,595,000.0010/31/2017 01/15 - QuarterlyLAIF111325-33-005 LA1249 Subtotal 25,595,000.0025,595,000.00 0.0025,595,000.00 Managed Pool Deposits Rate Deposit Amount Deposit Date Deposit Amount 4,000,000.00 0.9784,000,000.0012/29/2017LAIF105598-33-434 LA5101 Subtotal 4,000,000.004,000,000.00 37,039,990.00Total Purchases and Deposits 37,053,400.00 120.99 33,039,990.00 Received = Accrued Interest at Purchase was received by report ending date. Portfolio CITY CP Run Date: 01/30/2018 - 16:35 PU (PRF_PU) 7.1.1 Report Ver. 7.3.6.1 City of La Quinta -City of La Quinta Sales/Call Report Sorted by Maturity Date - Fund October 1, 2017 - December 31, 2017 Redem. Date Redemption Principal Redemption Interest Book Value at Redem. Total Amount Net IncomeFundMatur. Date Rate at Redem. Par ValueSec. TypeCUSIPInvestment # Issuer Purchase Date 04/29/2019 240,000.00 240,000.00 240,480.00 2,161.32100306740KGR210/19/2017 242,641.32 2,641.32101BARCLY MC1 04/29/2019 04/29/2014 1.900 Sale Subtotal 240,000.00 240,480.00 2,161.32240,000.00 242,641.32 2,641.32 Managed Pool Withdrawals Withdrawal Date Withdrawal Amount Current Rate Withdrawal Amount Withdrawal Amount 5,000,000.00 5,000,000.00105511/03/2017 5,000,000.00LAIF1.239 1,000,000.00 1,000,000.00105512/12/2017 1,000,000.00LAIF1.239 Subtotal 6,000,000.006,000,000.00 6,000,000.00 6,240,480.00Total Sales and Withdrawals 6,240,000.00 2,161.32240,000.00 6,242,641.32 2,641.32 Portfolio CITY CP Run Date: 01/30/2018 - 16:39 SA (PRF_SA) 7.1.1 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 Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr 9/29/2017 0.96 1.06 1.20 1.31 1.47 1.62 1.92 2.16 2.33 2.63 2.86 10/31/2017 0.99 1.15 1.28 1.43 1.6 1.73 2.01 2.23 2.38 2.66 2.88 11/30/2017 1.14 1.27 1.44 1.62 1.78 1.9 2.14 2.31 2.42 2.65 2.83 12/29/2017 1.28 1.39 1.53 1.76 1.89 1.98 2.2 2.33 2.4 2.58 2.74 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 12, 2018 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED OCTOBER 31, NOVEMBER 30, AND DECEMBER 31, 2017 RECOMMENDATION Receive and file revenue and expenditure reports dated October 31, November 30, and December 31, 2017. EXECUTIVE SUMMARY •The revenue and expenditure reports summarize the City’s year-to-date (YTD) and period activity as of October 31, November 30, and December 31, 2017 (Attachment 1). FISCAL IMPACT – None. BACKGROUND/ANALYSIS Reports Below is a summary of the column headers used on the Revenue and Expenditure Summary Reports: Original Total Budget – represents the revenue and expenditure budgets the Council adopted in June 2017 for fiscal year 2017/18. Current Total Budget – represents original adopted budgets plus any carryovers (typically associated with long-term Capital Improvement Projects (CIP)) from the prior fiscal year, and any Council approved budget amendments. Period Activity – represents actual revenues received and expenditures outlaid in the reporting month. Fiscal Activity – represents actual revenues received and expenditures outlaid YTD. Variance Favorable/(Unfavorable) - the dollar difference between YTD collections and the budgeted amount. Percent Used – represents the percentage activity as compared to budget YTD. 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. Consent Calendar Item No. 3 1 Similarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. 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. October Revenues $2,178,835 in General Fund revenues were collected in October, bringing the total YTD to $5,664,044 which is 11.67 percent of the budget. Total collections for all funds were $3,992,255, bringing the total YTD to $10,310,696 which is 13.84 percent of the budget. Top Five Revenue/Income Sources for October General Fund Non-General Fund State Sales Tax $ 463,300 Transfers In - Lighting and Landscape Fund $ 490,000 Measure G Sales Tax $ 372,500 Transfers In - SilverRock Resort $ 434,000 Transient Occupancy Tax $ 314,993 Transfers In- Gas Tax Fund $ 293,500 CSA 152 Assessments $ 207,294 Interest Earnings $ 263,330 TOT Mitigation Measures $ 173,407 Gas Tax $ 159,505 October Expenditures $2,515,560 in General Fund money was expended in October, bringing the total YTD to $6,702,290 which is 12.97 percent of the budget. Of this amount, $555,970 is related to personnel costs (salaries, benefits, etc.). Total expenditures for all funds were $4,902,411, bringing the total YTD expenditures to $18,533,572 which is 21.26 percent of the budget. Top Five Expenditures/Outlays for October General Fund Non-General Fund Transfers Out (1) $ 1,519,500 Capital Improvement Program Construction (2) $ 835,431 Greater Palm Springs Convention Bureau $ 66,388 City Hall Bond-Principal & Interest Payment $ 650,104 Marketing & Tourism Promotions $ 61,459 Capital Improvement Program Design (3) $ 172,878 Contract Legal Services $ 38,522 SilverRock Maintenance $ 151,017 Parks Landscape Maintenance $ 30,725 Capital Improvement Program Professional Services $ 85,924 (1) Transfers out to Gas Tax fund, Public Safety fund, Lighting and Landscape District, SilverRock, and contributions to the pavement management plan (2) Construction costs include Miles Avenue medians and Fritz Burns pickleball courts (3) Design costs include Village Complete Streets, Eisenhower retention basin, Dune Palms low water crossing and road widening, and landscape projects 2 November Revenues $2,228,291 in General Fund revenues were collected in November, bringing the total YTD to $7,852,185 which is 16.17 percent of the budget. Total collections for all funds were $4,085,778, bringing the total YTD to $14,601,044 which is 19.60 percent of the budget. Top Five Revenue/Income Sources for November General Fund Non-General Fund State Sales Tax $ 617,800 County Government Revenue-Library $841,805 Transient Occupancy Tax $ 541,277 SilverRock Greens Fees $279,882 Measure G Sales Tax $ 496,600 Developer Agreement Funding- Coachella Music Festival $244,755 Cable Television Franchise Fee $ 145,372 Gas Tax $ 75,169 Communications Franchise Fees $ 76,742 CVAG-Dune Palms Widening $ 59,467 November Expenditures $2,788,149 in General Fund money was expended in November, bringing the total YTD to $9,490,438 which is 18.37 percent of the budget. Of this amount, $669,709 is related to personnel costs (salaries, benefits, etc.). Total expenditures for all funds were $3,985,073, bringing the total YTD expenditures to $22,518,645 which is 25.51 percent of the budget. Top Five Expenditures/Outlays for November General Fund Non-General Fund Sheriff Contract-July/August $1,737,681 Silver Rock Maintenance $ 242,837 Marketing & Tourism Promotions $ 55,287 Capital Improvement Program Construction (1) $ 184,915 Contract Legal Services $ 33,456 Machinery & Equipment-Utility Truck $ 119,119 Parks Landscape Maintenance $ 31,807 Capital Improvement Program Design (2) $ 63,969 Boys & Girls Club $ 30,000 Parks-Adams Park Fence; Cove Trails Parking $ 50,457 (1) Construction costs include Miles Avenue medians and entrance monuments. (2) Design costs include Village Complete Streets and Eisenhower retention basin projects December Revenues $5,578,707 in General Fund revenues were collected in December, bringing the total YTD to $13,471,042 which is 27.75 percent of the budget. Total collections for all funds were $8,290,111, bringing the total YTD to $22,738,746 which is 30.38 percent of the budget. 3 Top Five Revenue/Income Sources for December General Fund Non-General Fund Property Tax $ 1,964,265 Transfers In – Capital Improvement Program (CIP) (1) $ 1,492,102 Measure G Sales Tax $ 1,170,551 SilverRock Resort- Greens Fees $ 278,093 State Sales Tax $ 828,544 Internal Service Fund- Insurance $ 247,250 Transient Occupancy Tax (TOT) $ 719,202 Internal Service Fund-Technology $ 183,250 Fire Service Tax Credit $ 242,720 Internal Service Fund-Equipment $ 141,000 (1) Transfers in from multiple funds for ongoing projects December Expenditures $5,337,867 in General Fund money was expended in December, bringing the total YTD to $14,828,305 which is 28.70 percent of the budget. Of this amount, $2,434,419 is related to personnel costs (salaries, benefits, etc.) which included the $1,523,400 Other Post- Employment Benefits (OPEB) Trust contribution. Total expenditures for all funds were $7,584,360, bringing the total YTD expenditures to $30,141,000 which is 33.90 percent of the budget. Top Five Expenditures/Outlays for December General Fund Non-General Fund Police Contract $ 1,056,406 Transfers Out- Transportation DIF Fund (2) $ 524,816 Transfers Out(1) $ 737,315 Capital Improvement Program Construction (3) $ 348,632 Internal Service Fund- Insurance $ 112,250 Transfers Out- Quimby Fund (4) $ 192,414 Contract Legal Services $ 81,519 SilverRock Maintenance $ 165,060 Internal Service Fund-Parks $ 75,000 Capital Improvement Program Design (5) $ 154,528 (1) Transfers out to Capital Improvement Program (CIP) for ongoing projects (2) Development Impact Fees transferred to CIP for Miles Median project (3) Construction costs include Roudel and Point Happy drainage projects, landscaping, and pavement management (4)Quimby Funds used for parks included La Quinta Xpark design and the Fritz Burns tennis and pickleball courts (5) Design costs include Village Complete Streets, Eisenhower retention basin, Dune Palms low water crossing and Xpark 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 October, November, and December, 2017 4 October Expenditures City of La Quinta, CA For Fiscal: 2017/18 Period Ending: 10/31/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 6,702,289.512,515,569.6248,180,700.00 51,688,429.71 44,986,140.20 12.97 % 201 - GAS TAX FUND 356,684.7560,389.241,435,000.00 1,435,000.00 1,078,315.25 24.86 % 202 - LIBRARY & MUSEUM FUND 338,236.1038,164.841,947,500.00 1,947,500.00 1,609,263.90 17.37 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 127,451.00 127,451.00 0.00 % 212 - SLESA (COPS) FUND 0.000.00100,000.00 100,000.00 100,000.00 0.00 % 215 - LIGHTING & LANDSCAPING FUND 378,368.22125,467.411,519,300.00 1,519,300.00 1,140,931.78 24.90 % 218 - CV VIOLENT CRIME TASK FORCE 3,406.653,406.650.00 0.00 -3,406.65 0.00 % 219 - ASSET FORFEITURE 55.6455.640.00 0.00 -55.64 0.00 % 220 - QUIMBY FUND 219,865.650.000.00 0.00 -219,865.65 0.00 % 221 - AB 939 - CALRECYCLE FUND 728.750.0020,000.00 20,000.00 19,271.25 3.64 % 223 - MEASURE A FUND 48,329.190.00787,000.00 787,000.00 738,670.81 6.14 % 225 - INFRASTRUCTURE FUND 0.000.0022,600.00 22,600.00 22,600.00 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 4,717,897.660.000.00 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 1,692.00192.000.00 0.00 -1,692.00 0.00 % 241 - HOUSING AUTHORITY 253,110.0968,100.861,192,100.00 1,192,100.00 938,989.91 21.23 % 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 25,312.140.001,005,100.00 1,005,100.00 979,787.86 2.52 % 252 - CIVIC CENTER DIF FUND 16,704.150.000.00 0.00 -16,704.15 0.00 % 253 - LIBRARY DEVELOPMENT DIF 5,002.770.000.00 0.00 -5,002.77 0.00 % 254 - COMMUNITY CENTER DIF 0.000.00101,600.00 101,600.00 101,600.00 0.00 % 255 - STREET FACILITY DIF FUND 4,490.810.000.00 0.00 -4,490.81 0.00 % 256 - PARK FACILITY DIF FUND 1,281.060.000.00 0.00 -1,281.06 0.00 % 257 - FIRE PROTECTION DIF 5.900.000.00 0.00 -5.90 0.00 % 270 - ART IN PUBLIC PLACES FUND 40,830.80835.54122,000.00 122,000.00 81,169.20 33.47 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 650,103.75650,103.75671,400.00 671,400.00 21,296.25 96.83 % 401 - CAPITAL IMPROVEMENT PROGRAMS 2,361,399.181,122,462.608,614,400.00 9,366,051.00 7,004,651.82 25.21 % 501 - FACILITY & FLEET REPLACEMENT 87,603.4023,306.161,069,300.00 1,069,300.00 981,696.60 8.19 % 502 - INFORMATION TECHNOLOGY 331,346.846,186.85914,000.00 914,000.00 582,653.16 36.25 % 503 - PARK EQUIP & FACILITY FUND 76,454.4339,932.74670,000.00 670,000.00 593,545.57 11.41 % 504 - INSURANCE FUND 792,037.037,005.44969,200.00 969,200.00 177,162.97 81.72 % 601 - SILVERROCK RESORT 1,120,335.95241,231.354,003,400.00 4,003,400.00 2,883,064.05 27.98 % Report Total:4,902,410.69 18,533,572.4282,902,400.00 87,163,431.71 68,629,859.29 21.26 % ATTACHMENT 1 11 October Revenues City of La Quinta, CA For Fiscal: 2017/18 Period Ending: 10/31/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 5,664,043.962,178,835.1248,551,600.00 48,551,600.00 -42,887,556.04 11.67 % 201 - GAS TAX FUND 603,263.00453,005.131,415,400.00 1,415,400.00 -812,137.00 42.62 % 202 - LIBRARY & MUSEUM FUND 229,531.760.002,254,000.00 2,254,000.00 -2,024,468.24 10.18 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 127,451.00 -127,451.00 0.00 % 212 - SLESA (COPS) FUND 64,407.7147,749.74100,100.00 100,100.00 -35,692.29 64.34 % 215 - LIGHTING & LANDSCAPING FUND 504,558.21504,399.291,448,900.00 1,448,900.00 -944,341.79 34.82 % 218 - CV VIOLENT CRIME TASK FORCE -253.590.000.00 0.00 -253.59 0.00 % 219 - ASSET FORFEITURE -13.370.000.00 0.00 -13.37 0.00 % 220 - QUIMBY FUND 4,197.770.0055,000.00 55,000.00 -50,802.23 7.63 % 221 - AB 939 - CALRECYCLE FUND 8,286.562,438.5362,500.00 62,500.00 -54,213.44 13.26 % 223 - MEASURE A FUND 141,085.1875,497.05724,500.00 724,500.00 -583,414.82 19.47 % 224 - TUMF FUND -11.170.000.00 0.00 -11.17 0.00 % 225 - INFRASTRUCTURE FUND 20.020.000.00 0.00 20.02 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 8,333.141.000.00 0.00 8,333.14 0.00 % 235 - SO COAST AIR QUALITY FUND 144.350.0050,300.00 50,300.00 -50,155.65 0.29 % 241 - HOUSING AUTHORITY 411,564.0277,404.36919,000.00 919,000.00 -507,435.98 44.78 % 243 - RDA Low-Mod Housing Fund 2,798.690.000.00 0.00 2,798.69 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)20,185.957,291.220.00 0.00 20,185.95 0.00 % 250 - TRANSPORTATION DIF FUND 128,150.7934,104.00369,000.00 369,000.00 -240,849.21 34.73 % 251 - PARKS & REC DIF FUND 90,112.0024,576.00200,000.00 200,000.00 -109,888.00 45.06 % 252 - CIVIC CENTER DIF FUND 41,448.0011,304.00100,000.00 100,000.00 -58,552.00 41.45 % 253 - LIBRARY DEVELOPMENT DIF 15,136.004,128.0030,000.00 30,000.00 -14,864.00 50.45 % 254 - COMMUNITY CENTER DIF 5,780.781,548.0015,400.00 15,400.00 -9,619.22 37.54 % 255 - STREET FACILITY DIF FUND 6,385.061,392.0015,000.00 15,000.00 -8,614.94 42.57 % 256 - PARK FACILITY DIF FUND 1,760.92480.004,000.00 4,000.00 -2,239.08 44.02 % 257 - FIRE PROTECTION DIF 19,052.005,196.0040,000.00 40,000.00 -20,948.00 47.63 % 270 - ART IN PUBLIC PLACES FUND 11,931.401,660.0153,500.00 53,500.00 -41,568.60 22.30 % 299 - INTEREST ALLOCATION FUND 263,329.95263,329.950.00 0.00 263,329.95 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 157.56157.56671,400.00 671,400.00 -671,242.44 0.02 % 401 - CAPITAL IMPROVEMENT PROGRAMS 790,067.38-219,755.008,423,900.00 10,289,880.21 -9,499,812.83 7.68 % 501 - FACILITY & FLEET REPLACEMENT 187,034.9443,636.00531,000.00 531,000.00 -343,965.06 35.22 % 502 - INFORMATION TECHNOLOGY 188,368.591,152.00714,000.00 714,000.00 -525,631.41 26.38 % 503 - PARK EQUIP & FACILITY FUND 77,775.790.00680,000.00 680,000.00 -602,224.21 11.44 % 504 - INSURANCE FUND 250,953.323,822.201,001,000.00 1,001,000.00 -750,046.68 25.07 % 601 - SILVERROCK RESORT 570,573.44468,902.434,004,200.00 4,004,200.00 -3,433,626.56 14.25 % 602 - SILVERROCK GOLF RESERVE 535.530.0061,300.00 61,300.00 -60,764.47 0.87 % Report Total:3,992,254.59 10,310,695.6472,620,800.00 74,488,431.21 -64,177,735.57 13.84 % 22 November Expenditures City of La Quinta, CA For Fiscal: 2017/18 Period Ending: 11/30/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 9,490,438.102,788,148.5948,180,700.00 51,663,040.00 42,172,601.90 18.37 % 201 - GAS TAX FUND 414,639.8657,955.111,435,000.00 1,442,240.00 1,027,600.14 28.75 % 202 - LIBRARY & MUSEUM FUND 400,734.9162,498.811,947,500.00 1,947,500.00 1,546,765.09 20.58 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 127,451.00 127,451.00 0.00 % 212 - SLESA (COPS) FUND 5,306.545,306.54100,000.00 100,000.00 94,693.46 5.31 % 215 - LIGHTING & LANDSCAPING FUND 468,748.8490,380.621,519,300.00 1,527,920.00 1,059,171.16 30.68 % 218 - CV VIOLENT CRIME TASK FORCE 3,406.650.000.00 0.00 -3,406.65 0.00 % 219 - ASSET FORFEITURE 55.640.000.00 0.00 -55.64 0.00 % 220 - QUIMBY FUND 219,865.650.000.00 0.00 -219,865.65 0.00 % 221 - AB 939 - CALRECYCLE FUND 728.750.0020,000.00 20,000.00 19,271.25 3.64 % 223 - MEASURE A FUND 48,329.190.00787,000.00 787,000.00 738,670.81 6.14 % 225 - INFRASTRUCTURE FUND 0.000.0022,600.00 22,600.00 22,600.00 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 4,717,897.660.000.00 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 1,884.00192.000.00 0.00 -1,884.00 0.00 % 241 - HOUSING AUTHORITY 277,251.3424,141.251,192,100.00 1,192,920.00 915,668.66 23.24 % 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 25,312.140.001,005,100.00 1,005,100.00 979,787.86 2.52 % 252 - CIVIC CENTER DIF FUND 16,704.150.000.00 0.00 -16,704.15 0.00 % 253 - LIBRARY DEVELOPMENT DIF 5,002.770.000.00 0.00 -5,002.77 0.00 % 254 - COMMUNITY CENTER DIF 0.000.00101,600.00 101,600.00 101,600.00 0.00 % 255 - STREET FACILITY DIF FUND 4,490.810.000.00 0.00 -4,490.81 0.00 % 256 - PARK FACILITY DIF FUND 1,281.060.000.00 0.00 -1,281.06 0.00 % 257 - FIRE PROTECTION DIF 5.900.000.00 0.00 -5.90 0.00 % 270 - ART IN PUBLIC PLACES FUND 61,179.2020,348.40122,000.00 122,000.00 60,820.80 50.15 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 650,103.750.00671,400.00 671,400.00 21,296.25 96.83 % 401 - CAPITAL IMPROVEMENT PROGRAMS 2,610,459.50249,060.328,614,400.00 10,480,381.00 7,869,921.50 24.91 % 501 - FACILITY & FLEET REPLACEMENT 276,181.24188,577.841,069,300.00 1,069,300.00 793,118.76 25.83 % 502 - INFORMATION TECHNOLOGY 378,072.3946,725.55914,000.00 917,100.00 539,027.61 41.22 % 503 - PARK EQUIP & FACILITY FUND 126,911.2450,456.81670,000.00 670,000.00 543,088.76 18.94 % 504 - INSURANCE FUND 798,624.436,587.40969,200.00 972,740.00 174,115.57 82.10 % 601 - SILVERROCK RESORT 1,515,029.36394,693.414,003,400.00 4,005,470.00 2,490,440.64 37.82 % Report Total:3,985,072.65 22,518,645.0782,902,400.00 88,277,762.00 65,759,116.93 25.51 % 33 November Revenues City of La Quinta, CA For Fiscal: 2017/18 Period Ending: 11/30/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 7,852,184.872,228,290.9148,551,500.00 48,551,500.00 -40,699,315.13 16.17 % 201 - GAS TAX FUND 678,432.3175,169.311,415,400.00 1,415,400.00 -736,967.69 47.93 % 202 - LIBRARY & MUSEUM FUND 1,071,336.78841,805.022,254,000.00 2,254,000.00 -1,182,663.22 47.53 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 127,451.00 -127,451.00 0.00 % 212 - SLESA (COPS) FUND 72,741.048,333.33100,100.00 100,100.00 -27,358.96 72.67 % 215 - LIGHTING & LANDSCAPING FUND 504,595.9537.741,448,900.00 1,448,900.00 -944,304.05 34.83 % 218 - CV VIOLENT CRIME TASK FORCE -253.590.000.00 0.00 -253.59 0.00 % 219 - ASSET FORFEITURE -13.370.000.00 0.00 -13.37 0.00 % 220 - QUIMBY FUND 4,197.770.0055,000.00 55,000.00 -50,802.23 7.63 % 221 - AB 939 - CALRECYCLE FUND 10,872.662,586.1062,500.00 62,500.00 -51,627.34 17.40 % 223 - MEASURE A FUND 189,255.6448,170.46724,500.00 724,500.00 -535,244.36 26.12 % 224 - TUMF FUND -11.170.000.00 0.00 -11.17 0.00 % 225 - INFRASTRUCTURE FUND 20.020.000.00 0.00 20.02 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 8,334.361.220.00 0.00 8,334.36 0.00 % 235 - SO COAST AIR QUALITY FUND 144.350.0050,300.00 50,300.00 -50,155.65 0.29 % 241 - HOUSING AUTHORITY 436,325.0424,761.02919,000.00 919,000.00 -482,674.96 47.48 % 243 - RDA Low-Mod Housing Fund 2,798.690.000.00 0.00 2,798.69 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)20,185.950.000.00 0.00 20,185.95 0.00 % 250 - TRANSPORTATION DIF FUND 165,096.7936,946.00369,000.00 369,000.00 -203,903.21 44.74 % 251 - PARKS & REC DIF FUND 116,736.0026,624.00200,000.00 200,000.00 -83,264.00 58.37 % 252 - CIVIC CENTER DIF FUND 53,694.0012,246.00100,000.00 100,000.00 -46,306.00 53.69 % 253 - LIBRARY DEVELOPMENT DIF 19,608.004,472.0030,000.00 30,000.00 -10,392.00 65.36 % 254 - COMMUNITY CENTER DIF 7,457.781,677.0015,400.00 15,400.00 -7,942.22 48.43 % 255 - STREET FACILITY DIF FUND 7,893.061,508.0015,000.00 15,000.00 -7,106.94 52.62 % 256 - PARK FACILITY DIF FUND 2,280.92520.004,000.00 4,000.00 -1,719.08 57.02 % 257 - FIRE PROTECTION DIF 24,681.005,629.0040,000.00 40,000.00 -15,319.00 61.70 % 270 - ART IN PUBLIC PLACES FUND 15,759.323,827.9253,500.00 53,500.00 -37,740.68 29.46 % 299 - INTEREST ALLOCATION FUND 269,604.456,274.500.00 0.00 269,604.45 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 165.948.38671,400.00 671,400.00 -671,234.06 0.02 % 401 - CAPITAL IMPROVEMENT PROGRAMS 1,428,917.65394,095.278,423,900.00 10,289,880.21 -8,860,962.56 13.89 % 501 - FACILITY & FLEET REPLACEMENT 208,909.9421,875.00531,000.00 531,000.00 -322,090.06 39.34 % 502 - INFORMATION TECHNOLOGY 189,509.591,176.00714,000.00 714,000.00 -524,490.41 26.54 % 503 - PARK EQUIP & FACILITY FUND 77,775.790.00680,000.00 680,000.00 -602,224.21 11.44 % 504 - INSURANCE FUND 250,953.320.001,001,000.00 1,001,000.00 -750,046.68 25.07 % 601 - SILVERROCK RESORT 910,317.55339,744.114,004,200.00 4,004,200.00 -3,093,882.45 22.73 % 602 - SILVERROCK GOLF RESERVE 535.530.0061,300.00 61,300.00 -60,764.47 0.87 % Report Total:4,085,778.29 14,601,043.9372,620,700.00 74,488,331.21 -59,887,287.28 19.60 % 44 December Revenues City of La Quinta, CA Group Summary For Fiscal: 2017/18 Period Ending: 12/31/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 13,471,042.035,578,707.1648,551,600.00 48,551,600.00 -35,080,557.97 27.75 % 201 - GAS TAX FUND 680,030.191,597.881,415,400.00 1,415,400.00 -735,369.81 48.05 % 202 - LIBRARY & MUSEUM FUND 1,089,568.9818,232.202,254,000.00 2,254,000.00 -1,164,431.02 48.34 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 127,451.00 -127,451.00 0.00 % 212 - SLESA (COPS) FUND 81,243.528,502.48100,100.00 100,100.00 -18,856.48 81.16 % 215 - LIGHTING & LANDSCAPING FUND 505,581.47985.521,448,900.00 1,448,900.00 -943,318.53 34.89 % 218 - CV VIOLENT CRIME TASK FORCE -250.912.680.00 0.00 -250.91 0.00 % 219 - ASSET FORFEITURE -13.330.040.00 0.00 -13.33 0.00 % 220 - QUIMBY FUND 37,442.8333,245.0655,000.00 55,000.00 -17,557.17 68.08 % 221 - AB 939 - CALRECYCLE FUND 13,827.002,954.3462,500.00 62,500.00 -48,673.00 22.12 % 223 - MEASURE A FUND 257,155.2967,899.65724,500.00 724,500.00 -467,344.71 35.49 % 224 - TUMF FUND 70.9582.120.00 0.00 70.95 0.00 % 225 - INFRASTRUCTURE FUND 109.7689.740.00 0.00 109.76 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 12,131.373,797.010.00 0.00 12,131.37 0.00 % 235 - SO COAST AIR QUALITY FUND 13,744.8713,600.5250,300.00 50,300.00 -36,555.13 27.33 % 241 - HOUSING AUTHORITY 602,857.57114,370.98919,000.00 919,000.00 -316,142.43 65.60 % 243 - RDA Low-Mod Housing Fund 7,374.594,575.900.00 0.00 7,374.59 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)20,185.950.000.00 0.00 20,185.95 0.00 % 250 - TRANSPORTATION DIF FUND 207,759.3342,662.54369,000.00 369,000.00 -161,240.67 56.30 % 251 - PARKS & REC DIF FUND 137,216.0020,480.00200,000.00 200,000.00 -62,784.00 68.61 % 252 - CIVIC CENTER DIF FUND 62,822.009,128.00100,000.00 100,000.00 -37,178.00 62.82 % 253 - LIBRARY DEVELOPMENT DIF 23,048.003,440.0030,000.00 30,000.00 -6,952.00 76.83 % 254 - COMMUNITY CENTER DIF 9,206.661,748.8815,400.00 15,400.00 -6,193.34 59.78 % 255 - STREET FACILITY DIF FUND 10,454.552,561.4915,000.00 15,000.00 -4,545.45 69.70 % 256 - PARK FACILITY DIF FUND 2,683.53402.614,000.00 4,000.00 -1,316.47 67.09 % 257 - FIRE PROTECTION DIF 28,877.004,196.0040,000.00 40,000.00 -11,123.00 72.19 % 270 - ART IN PUBLIC PLACES FUND 17,256.991,497.6753,500.00 53,500.00 -36,243.01 32.26 % 299 - INTEREST ALLOCATION FUND 0.00-269,604.450.00 0.00 0.00 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 166.010.07671,400.00 671,400.00 -671,233.99 0.02 % 401 - CAPITAL IMPROVEMENT PROGRAMS 2,792,178.511,608,015.868,423,900.00 10,658,881.00 -7,866,702.49 26.20 % 501 - FACILITY & FLEET REPLACEMENT 371,526.38162,616.44531,000.00 531,000.00 -159,473.62 69.97 % 502 - INFORMATION TECHNOLOGY 376,414.86186,870.27714,000.00 714,000.00 -337,585.14 52.72 % 503 - PARK EQUIP & FACILITY FUND 164,412.0186,636.22680,000.00 680,000.00 -515,587.99 24.18 % 504 - INSURANCE FUND 498,671.45247,718.131,001,000.00 1,001,000.00 -502,328.55 49.82 % 601 - SILVERROCK RESORT 1,241,664.94331,347.394,004,200.00 4,004,200.00 -2,762,535.06 31.01 % 602 - SILVERROCK GOLF RESERVE 2,285.831,750.3061,300.00 61,300.00 -59,014.17 3.73 % Report Total:8,290,110.70 22,738,746.1872,620,800.00 74,857,432.00 -52,118,685.82 30.38 % 5 December Expenditures City of La Quinta, CA Group Summary For Fiscal: 2017/18 Period Ending: 12/31/2017 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityFun… Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 14,828,304.625,337,866.5248,180,700.00 51,663,040.00 36,834,735.38 28.70 % 201 - GAS TAX FUND 556,221.00141,581.141,435,000.00 1,442,240.00 886,019.00 38.57 % 202 - LIBRARY & MUSEUM FUND 441,461.0840,726.171,947,500.00 1,947,500.00 1,506,038.92 22.67 % 210 - FEDERAL ASSISTANCE FUND 0.000.00125,800.00 127,451.00 127,451.00 0.00 % 212 - SLESA (COPS) FUND 6,525.611,219.07100,000.00 100,000.00 93,474.39 6.53 % 215 - LIGHTING & LANDSCAPING FUND 655,464.26186,715.421,519,300.00 1,527,920.00 872,455.74 42.90 % 218 - CV VIOLENT CRIME TASK FORCE 3,406.650.000.00 0.00 -3,406.65 0.00 % 219 - ASSET FORFEITURE 55.640.000.00 0.00 -55.64 0.00 % 220 - QUIMBY FUND 412,279.22192,413.570.00 0.00 -412,279.22 0.00 % 221 - AB 939 - CALRECYCLE FUND 1,594.55865.8020,000.00 20,000.00 18,405.45 7.97 % 223 - MEASURE A FUND 89,386.8241,057.63787,000.00 787,000.00 697,613.18 11.36 % 225 - INFRASTRUCTURE FUND 0.000.0022,600.00 22,600.00 22,600.00 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 4,717,897.660.000.00 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 2,184.00300.000.00 0.00 -2,184.00 0.00 % 241 - HOUSING AUTHORITY 394,911.7179,666.291,192,100.00 1,192,920.00 798,008.29 33.10 % 243 - RDA Low-Mod Housing Fund 0.000.000.00 259,000.00 259,000.00 0.00 % 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 550,128.05524,815.911,005,100.00 1,005,100.00 454,971.95 54.73 % 252 - CIVIC CENTER DIF FUND 33,408.2516,704.100.00 0.00 -33,408.25 0.00 % 253 - LIBRARY DEVELOPMENT DIF 8,798.503,795.730.00 0.00 -8,798.50 0.00 % 254 - COMMUNITY CENTER DIF 0.000.00101,600.00 101,600.00 101,600.00 0.00 % 255 - STREET FACILITY DIF FUND 8,980.434,489.620.00 0.00 -8,980.43 0.00 % 256 - PARK FACILITY DIF FUND 2,682.551,401.490.00 0.00 -2,682.55 0.00 % 257 - FIRE PROTECTION DIF 1,281.091,275.190.00 0.00 -1,281.09 0.00 % 270 - ART IN PUBLIC PLACES FUND 62,556.201,377.00122,000.00 122,000.00 59,443.80 51.28 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 651,886.751,783.00671,400.00 671,400.00 19,513.25 97.09 % 401 - CAPITAL IMPROVEMENT PROGRAMS 3,157,989.35547,529.858,614,400.00 10,849,381.00 7,691,391.65 29.11 % 501 - FACILITY & FLEET REPLACEMENT 268,997.68-7,183.561,069,300.00 1,069,300.00 800,302.32 25.16 % 502 - INFORMATION TECHNOLOGY 429,799.3951,727.00914,000.00 917,100.00 487,300.61 46.87 % 503 - PARK EQUIP & FACILITY FUND 126,911.240.00670,000.00 670,000.00 543,088.76 18.94 % 504 - INSURANCE FUND 811,233.9712,609.54969,200.00 972,740.00 161,506.03 83.40 % 601 - SILVERROCK RESORT 1,916,652.83401,623.474,003,400.00 4,005,470.00 2,088,817.17 47.85 % Report Total:7,584,359.95 30,140,999.1082,902,400.00 88,905,762.00 58,764,762.90 33.90 % 6 City of La Quinta FINANCIAL ADVISORY COMMISISON MEETING: FEBRUARY 12, 2018 STAFF REPORT AGENDA TITLE: DISCUSS RESERVE POLICY ANALYSIS REPORT AND FINDINGS RECOMMENDATION Discuss Reserve Policy Analysis Report and Findings. EXECUTIVE SUMMARY •Council requested an analysis of the City’s reserves by the Financial Advisory Commission (FAC). •The FAC established a subcommittee who prepared a Reserve Policy Analysis DRAFT Interim Report (Draft Report). •The Report was presented to Council on February 6, 2018 and further analysis was requested. BACKGROUND/ANALYSIS During the 2017/18 budget process Council requested an analysis of the City’s reserves. Three members of the FAC joined the Finance staff to conduct an in-depth analysis with additional hours of independent research. The scope of the analysis included review of: •current reserve policy and funding •reserve categories •Coachella Valley wide comparison of reserves and funding •best practices recommended by accounting standards boards •City demographics, revenues, expenditure volatility, other funds dependency on the General Fund, growth projections, and unfunded capital projects •risk mitigation - including a review of insurance policies •City infrastructure and vulnerability to extreme events. The Draft Report (Attachment 1), outlines recommendations and the need for additional analysis (Asset/Insurance/Government Funding Study and an Asset Management Program) that city departments are undertaking. Finance is also updating the 10-year cash flow projections to incorporate the Reserve/Trust Annual Target funding recommendations and capital improvement project needs and priorities, to identify how the City may fund all of the recommended reserves and projects. Council requested staff provide funding options for each reserve component based on the current long-range financial plan. Council also discuss having two Councilmembers join the FAC sub-committee to further define the reserve categories. STUDY SESSION ITEM NO. 1 1 ALTERNATIVES The Commission could identify additional financial matters the FAC sub-committee should evaluate. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director Attachment: 1. Reserve Policy Analysis DRAFT Interim Report 2 City of La Quinta Reserve Policy Analysis DRAFT Interim Report Financial Advisory Commission Reserve Policy Subcommittee February 2018 ATTACHMENT 1 This Page Intentionally Left Blank 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 ..................................................................................................... 13 1 City of La Quinta Financial Advisory Commission Reserve Policy Sub-Committee Interim Report Executive Summary The City of La Quinta (City) 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 allows for an annual review of reserves based on actual economic conditions. 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. 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). 2 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 and define use of funds. 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. 7. Current Unassigned Reserves-utilize to fund the recommended Reserve/Trust targets and/or operating expenses at the discretion of the Council. Table 1-Reserve/Trust Recommendations 3 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 (Measure G) 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, specify the intended use of reserves, and the replenishment of underfunded reserves. 4 Reserve/Fund Balance Amount ($) Non-Spendable Prepaid Costs 10,578 Land Held for Resale 8,320,000 Advances to Other Funds 15,022,660 Due from Other Governments 29,154,040 Total Non-Spendable 52,507,278 Committed Working Capital Reserve (10%)4,134,000 Emergency Reserve (40%) 16,534,000 Post Retirement Health Benefits 1,523,400 Carryovers 120,000 Total Committed 22,311,400 Assigned Public Safety Fire Services 9,371,699 Capital Projects 6,322,570 Total Assigned 15,694,269 Unassigned 16,949,526 TOTAL FUND BALANCE 107,462,473 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, and operating carryovers. • Assigned: constrained by the City’s intent to use funds for public safety or capital projects. • Unassigned (Unappropriated): net reserves available after satisfying the other reserve categories. Table 2 depicts the General Fund Reserve/Fund Balances as of June 30, 2017. Table 2 - General Fund Reserve/Fund Balances-6/30/17 5 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 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 or 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. 6 • The Reserve Policy can be amended by resolution and requires a 4/5th approval of the Council. 2.4 Ten-Year Financial Projection A Ten-Year Financial Projection is essential to aid in determining appropriate Reserve Policy. The La Quinta Advisory Committee 1 developed this tool to analyze various Revenue and Expenditure Scenarios in FY 2015/16. Updated Ten-Year Financial Projections (Exhibits 1 and 2) are in the Appendix. The Ten-Year Financial Projection is an Excel model that utilizes the FY 2017/18 Budget as the Base Year and applies a specific inflator (growth projection) for most revenue and expenditure line items 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). • 13 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 an 8% 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 represent the annual minimum General Fund contribution for road maintenance to secure Measure A and SB1 Gas Tax Funding (restricted funds for road improvements). The Fire Service Contract is anticipated to increase by 4% annually. • Additional Revenue Sources: These revenues include (1) Measure G Sales Tax and (2) Redevelopment Agency (RDA) payback (ending in FY 2029/30). Please note, any potential TOT tax increase was not used for this analysis. The Model shows that before any Additional Revenue Sources are applied, there is a cumulative Revenues/Expenditure deficit of -$52.1 million at the end of the ten-year period (Exhibit 1) or a deficit of -$82 million (Exhibit 2). After the Additional Revenue Sources are applied, there is a cumulative +$51.8 million Revenues/Expenditure surplus (Exhibit 1) or +$21.9 million (Exhibit 2). 1 The La Quinta Advisory Committee Report of January 2016 is a good reference for the City’s financial system. 7 The Ten-Year Projection demonstrates the importance of the RDA loan repayment and the impact of Measure G sales tax 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 escalate to 10% the available funding is reduced to $21.9 million or $2.19 million annually. In addition to the projected Ten-Year surplus, the city currently has an unassigned fund balance of approximately $16.9 million. These funds are non-restrictive and can be used to fund the recommended Reserve/Trust targets, capital projects, or operating expenses at the discretion of the 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. Recommendation: Utilize Current Unassigned Reserves to fund the recommended Reserve/Trust targets and/or operating expenses at the discretion of the Council. 2.5 Reserves versus Fund Balances The financial terminology utilized for the current Reserve Policy can be confusing but is 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 $107 million at the end of FY 2016/17. The only line items in Table 2 classified as “reserves” are Emergency Reserve ($16.5 million) and Cash Flow Reserve ($4.1 million) for a total of $20.6 million. Therefore, true “reserves” are much less than the reported $107 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: 8 General Fund Balances • Non-Spendable 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 of this report. 3.0 General Fund Reserves The subcommittee focused on developing a pragmatic methodology to determine the appropriate reserve levels as opposed to utilizing a percentage-based methodology. This process establishes a rationale and protocol that allows for an annual review of reserves based on actual economic conditions. 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. 9 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 Federal, state and/or county 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, evaluate, and recommend an Emergency Reserve-Natural Disaster component reserve level. Recommendation: Fund this reserve initially with $1.5 million annually 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 2017 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 during this period. 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 10 Income data to establish the normalized level of Net Income for this Seven-Year 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. This was a very unusual economic period and back-to-back downturns are unlikely in the future. 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 or responding to adverse circumstances, while the City formulates a longer-term strategy. Use of the economic disaster reserves should be defined in policy and may include: • Used to balance the budget if revenues are projected to be 10% less than prior year actual revenues • Or if operating expenses are projected to be 10% more than prior year actual expenses. Figure 1-Long-Term Economic History 11 Recommendation: Set the Emergency Reserve-Economic Disaster component at $11 million, fund with $1.0 million annually and define the intended use of funds. 3.2 Cash Flow Reserve The Cash Flow Reserve replaces the existing terminology and calculation of Working Capital Reserve (currently based on 10% of the operating budget). 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. Figure 2-Cash Flow Imbalance for FY 2016/17 It is recommended that the Cash Flow Reserve be updated annually by calculating the prior fiscal year monthly surplus/(deficit) of revenues versus expenditures; with the largest cumulative deficit becoming the updated Cash Flow Reserve. Figure 2 above 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 yielded a $4.7 million cash flow imbalance. $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 Revenue Expenditures 12 Recommendation: Set Cash Flow Reserve at $5 million initially and fund annually subject to the calculation. 3.3 CIP Sinking Fund Reserve Exhibit 3 (Appendix) is page 47 from the FY 2016/17 Comprehensive Annual Financial Report (CAFR) describing the City’s capital assets. Table 3 below summarizes the Depreciable Assets from this information. Table 3-Depreciable Assets The total Ten-Year Capital Improvement Program (CIP) budget utilized for Exhibits 1 and 2 includes minimum funding to secure Measure A and Gas Tax revenue for road improvements ($1.5 million annually). Capital expenses are typically supplemented with restricted funds such as those for road improvements, Quimby Funds for parks, developer impact fees (DIF), and grant funds. In addition to the General Fund, the City also maintains ten-year revenue and expenditure projections on these additional CIP funding sources. For FY 2017/18 General Fund capital expenses budgeted total $6.53 million or approximately 73% of depreciation (6.53/9.00=73) and are a reasonable barometer for evaluating the proper level of investment in capital assets. Additionally, $2.3 million is budgeted under special funds, for a total CIP budget of $8.83 or 98% of depreciation (8.83/9=98). Special revenue funds are derived from gas tax sales, property tax valuations, and developer impact fees; these revenue projections can vary greatly from year to year. Ideally, it would be desirable to match annual depreciation with capital spending, therefore it is recommended to establish a CIP Sinking Fund Reserve to set aside funds to supplement funding gaps. Recommendation: Set CIP Sinking Fund Reserve at $10 million and fund with $1.0 million annually. 13 3.4 Unfunded Pension Liability As of June 30, 2017, the CalPERS Net Pension Liability was $10.8 million (7.65% 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 6.65%, the Net Pension Liability increases to $16.5 million. 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 continuing through 2021/22. In addition, every four years CalPERS evaluates all pension plans to ensure financial stability. This evaluation has been completed and was presented to the CalPERS Board on November 13-15, 2017. Results from this valuation confirmed lowering the discount rate to 7%. 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 offset the unfunded pension liability and could be used for 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 $1.0 million annually as a General Fund Expense. 14 Appendix 15 List of Exhibits Exhibit 1–Ten-Year Financial Projection with an 8% Increase in Police Service Contract Exhibit 2–Ten-Year Financial Projection with a 10% Increase in Police Service Contract Exhibit 3–FY 2016/17 CAFR Page 47-Capital Assets City of La QuintaAs of January 10, 2018ActualGrowthAdjusted Budget18/19 to 27/282016/17 Projections 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28TOTAL1. Cash ReceiptsSales Tax - Bradley Burns8,597,655$ 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$ 92,735,598$ Property Tax9,237,781 2%8,579,100 8,750,682 8,925,696 9,104,210 9,286,294 9,472,020 9,661,460 9,854,689 10,051,783 10,252,819 10,457,875 95,817,526 Transient Occupancy Tax8,933,184 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 95,122,832 Fire Service Property Tax ᵃ5,480,897 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 75,120,780 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-Lieu3,813,213 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 41,413,597 Other Revenue/Intergovernmental ᵇ1,190,129 1%1,735,600 1,452,956 1,467,486 1,482,160 1,496,982 1,511,952 1,527,071 1,542,342 1,557,765 1,573,343 1,589,077 15,201,134 Franchise Fees1,725,851 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 16,410,294 Charges for Services1,021,336 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 13,295,191 Development Related Permits759,969 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 9,897,954 Document Transfer Tax585,333 1%531,000 536,310 541,673 547,090 552,561 558,086 563,667 569,304 574,997 580,747 586,554 5,610,989 Business Licenses/Permits358,943 1%321,000 324,210 327,452 330,727 334,034 337,374 340,748 344,155 347,597 351,073 354,584 3,391,954 Fines and Assessments348,345 1%246,000 248,460 250,945 253,454 255,989 258,548 261,134 263,745 266,383 269,047 271,737 2,599,441 SilverRock Resort Net Revenue ᶜ531,400 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$42,052,635$42,887,600 $43,430,456 $44,818,337 $46,424,627 $48,564,157 $49,946,182 $50,773,379 $52,122,447 $53,434,111 $54,488,518 $55,569,397 $499,571,6113. Cash Paid OutPolice Services Contract ᵈ14,417,358 8% 15,879,100 17,149,428 18,521,382 20,003,093 21,603,340 23,331,607 25,198,136 27,213,987 29,391,106 31,742,394 34,281,786 248,436,260 Fire Service Contract ᵈ5,643,880 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 84,033,145 Salaries (Full-Time Employees)4,989,399 3% 5,527,700 5,693,531 5,864,337 6,040,267 6,221,475 6,408,119 6,600,363 6,798,374 7,002,325 7,212,395 7,428,767 65,269,952 Maintenance & Operations ᵉ4,029,463 2% 4,613,700 4,037,774 4,118,529 4,200,900 4,284,918 4,370,616 4,458,029 4,547,189 4,638,133 4,730,896 4,825,514 44,212,499 Other Contract Services3,821,091 2% 3,206,000 3,270,120 3,335,522 3,402,233 3,470,278 3,539,683 3,610,477 3,682,686 3,756,340 3,831,467 3,908,096 35,806,902 Capital Expenses ᶠ3,937,135 1,567,000 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 15,520,000 Employee Medical Insurance Costs880,980 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 16,215,646 Transfers Out ᶢ1,372,300 1,219,500 1,219,500 819,500 1,219,500 1,219,500 1,219,500 1,219,500 1,219,500 1,219,500 1,219,500 1,219,500 11,795,000 Other Personnel Costs618,674 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 10,008,286 PERS Unfunded Pension Liabilityͪ454,756 592,784 711,814 866,600 986,100 1,138,800 1,272,600 1,348,200 1,348,248 1,375,213 1,402,717 1,430,772 11,881,064 PERS Normal Payroll Costs348,821 2%363,816 371,092 378,514 386,084 393,806 401,682 409,716 417,910 426,268 434,794 443,490 4,063,357 Salaries (Part-Time/Temporary)143,123 2%340,400 347,208 354,152 361,235 368,460 375,829 383,346 391,013 398,833 406,810 414,946 3,801,831 1996 Bond Debt Service678,100 671,400 668,200 668,200 4. Total Operational Expenses$41,335,079$42,980,800 $44,348,388 $45,478,942 $48,173,338 $50,641,354 $53,241,110 $55,944,309 $58,745,451 $61,759,767 $64,974,628 $68,404,855 $551,712,1415. Yearly Operating Cash Position(2 minus 4) 717,556 (93,200) (917,932) (660,604) (1,748,711) (2,077,197) (3,294,928) (5,170,930) (6,623,004) (8,325,656) (10,486,110) (12,835,457) (52,140,530)6. Measure G Sales Tax Revenue(95% of Sales Tax Bradley Burns)1,462,6508,000,000 8,420,668 8,504,875 8,589,923 8,675,823 8,762,581 8,850,207 8,938,709 9,028,096 9,118,377 9,209,56188,098,818 7. Cash Position After Measure G(5 plus 6)$2,180,206 7,906,800$ 7,502,736$ 7,844,270$ 6,841,212$ 6,598,625$ 5,467,653$ 3,679,276$ 2,315,705$ 702,440$ (1,367,733)$ (3,625,897)$ 35,958,288$ 8. Measure G UsesPolice Services Contract ᶜ100,000 - Capital Expenses990,873 4,969,464 3,731,561 3,859,103 3,764,59911,355,263 Measure G Reserves471,777 330,500- Public Safety Fund300,000 - 9. Total Measure G Uses1,462,650$ 5,699,964$ 3,731,561$ 3,859,103$ 3,764,599$ -$ -$ -$ -$ -$ -$ -$ 11,355,263$ 10. Cash Position After Measure G Uses(7 minus 9)717,556 2,206,836 3,771,175 3,985,167 3,076,613 6,598,625 5,467,653 3,679,276 2,315,705 702,440 (1,367,733) (3,625,897) 24,603,025 11. RDA Loan RepaymentRepayment based on Last & 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 27,269,760 12. Cash Position After RDA Repayment(10 plus 11)2,544,437$ 4,648,456$ 6,261,628$ 6,525,429$ 5,667,679$ 9,241,513$ 8,163,399$ 6,428,937$ 5,120,359$ 3,563,187$ 1,550,229$ (649,576)$ 51,872,784$ OPERATING BUDGET NOTES:a - Fire Property Tax Reserve account balance as of June 30, 2017 is $9,371,699. These funds are held in trust by the County of Riverside and restricted for fire services. b - Intergovernmental revenue will experience a decrease of $300,000 in 18/19 due one-time revenue in 17/18 and lower administrative reimbursements from Redevelopment dissolution resulting from an approved last and final repayment schedule. c - SilverRock Resort Net Revenue includes revenue derived from sales tax, property tax, transient occupancy tax and development fees. d - Police and Fire services are provided by the County of Riverside and subject to the County's annual budget for services. e - Maintenance and operations includes utilities and internal services charges. f - Capital expenses for 16/17 included the Eisenhower Drive retention basin land purchase. Ongoing projections include minimum capital funding for street and sidewalk improvements required to secure Measure A and Gas Tax funding. g - Transfers Out support the Gas Tax Fund for street improvements, the Landscape and Lighting District, and SilverRock golf course. A decrease in 19/20 is anticipated due to the scheduled disposition of SilverRock. h - PERS unfunded pension liability projections are based on CalPERS actuarial valuations as of June 30, 2016. GENERAL FUND FINANCIAL PROJECTIONSOPERATING BUDGETThe Adjusted Budget for 17/18 includes anticipated mid-year changes. Revenue projections are based on current economic conditions and historical trends. All assumptions include positive growth with no economic downturns. Expenditure projections are based on current operations, regulatory requirements, and anticipated increases. Measure G Uses Include:FY 16/17 Approved Uses:Eisenhower Dr. retention basin, Calle Tampico drainage improvementsFY 17/18 Approved Uses:Citywide drainage improvements, Village road diet, N. LQ landscape improvements, police servicesFY 18/19 Proposed Uses:Citywide drainage improvements, N. LQ landscape improvementsFY 19/20 & 20/21 Proposed Uses:N. LQ landscape improvements, corporate yard facilityMEASURE G SALES TAX BUDGETRDA LOANRDA loan repayments end in 29/30. Additional revenue totals $5,784,105. EXHIBIT 1 City of La QuintaAs of January 10, 2018ActualGrowthAdjusted Budget2018/19 to 2027/282016/17 Projections 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28TOTAL1. Cash ReceiptsSales Tax - Bradley Burns8,597,655$ 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$ 92,735,598$ Property Tax9,237,781 2%8,579,100 8,750,682 8,925,696 9,104,210 9,286,294 9,472,020 9,661,460 9,854,689 10,051,783 10,252,819 10,457,875 95,817,526 Transient Occupancy Tax8,933,184 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 95,122,832 Fire Service Property Tax ᵃ5,480,897 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 75,120,780 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-Lieu3,813,213 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 41,413,597 Other Revenue/Intergovernmental ᵇ1,190,129 1%1,735,600 1,452,956 1,467,486 1,482,160 1,496,982 1,511,952 1,527,071 1,542,342 1,557,765 1,573,343 1,589,077 15,201,134 Franchise Fees1,725,851 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 16,410,294 Charges for Services1,021,336 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 13,295,191 Development Related Permits759,969 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 9,897,954 Document Transfer Tax585,333 1%531,000 536,310 541,673 547,090 552,561 558,086 563,667 569,304 574,997 580,747 586,554 5,610,989 Business Licenses/Permits358,943 1%321,000 324,210 327,452 330,727 334,034 337,374 340,748 344,155 347,597 351,073 354,584 3,391,954 Fines and Assessments348,345 1%246,000 248,460 250,945 253,454 255,989 258,548 261,134 263,745 266,383 269,047 271,737 2,599,441 SilverRock Resort Net Revenue ᶜ531,400 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$42,052,635$42,887,600 $43,430,456 $44,818,337 $46,424,627 $48,564,157 $49,946,182 $50,773,379 $52,122,447 $53,434,111 $54,488,518 $55,569,397 $499,571,6113. Cash Paid OutPolice Services Contract ᵈ14,417,358 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 41,186,296 278,379,155 Fire Service Contract ᵈ5,643,880 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 84,033,145 Salaries (Full-Time Employees)4,989,399 3% 5,527,700 5,693,531 5,864,337 6,040,267 6,221,475 6,408,119 6,600,363 6,798,374 7,002,325 7,212,395 7,428,767 65,269,952 Maintenance & Operations ᵉ4,029,463 2% 4,613,700 4,037,774 4,118,529 4,200,900 4,284,918 4,370,616 4,458,029 4,547,189 4,638,133 4,730,896 4,825,514 44,212,499 Other Contract Services3,821,091 2% 3,206,000 3,270,120 3,335,522 3,402,233 3,470,278 3,539,683 3,610,477 3,682,686 3,756,340 3,831,467 3,908,096 35,806,902 Capital Expenses ᶠ3,937,135 1,567,000 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 15,520,000 Employee Medical Insurance Costs880,980 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 16,215,646 Transfers Out ᶢ1,372,300 1,219,500 1,219,500 819,500 1,219,500 1,219,500 1,219,500 1,219,500 1,219,500 1,219,500 1,219,500 1,219,500 11,795,000 Other Personnel Costs618,674 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 10,008,286 PERS Unfunded Pension Liabilityͪ454,756 592,784 711,814 866,600 986,100 1,138,800 1,272,600 1,348,200 1,348,248 1,375,213 1,402,717 1,430,772 11,881,064 PERS Normal Payroll Costs348,821 2%363,816 371,092 378,514 386,084 393,806 401,682 409,716 417,910 426,268 434,794 443,490 4,063,357 Salaries (Part-Time/Temporary)143,123 2%340,400 347,208 354,152 361,235 368,460 375,829 383,346 391,013 398,833 406,810 414,946 3,801,831 1996 Bond Debt Service678,100 671,400 668,200 668,200 4. Total Operational Expenses$41,335,079$42,980,800 $44,665,970 $46,171,271 $49,305,327 $52,286,604 $55,482,951 $58,876,967 $62,475,338 $66,406,922 $70,674,321 $75,309,365 $581,655,0365. Yearly Operating Cash Position(2 minus 4) 717,556 (93,200) (1,235,514) (1,352,933) (2,880,700) (3,722,447) (5,536,770) (8,103,589) (10,352,890) (12,972,811) (16,185,803) (19,739,967) (82,083,425)6. Measure G Sales Tax Revenue(95% of Sales Tax Bradley Burns)1,462,6508,000,000 8,420,668 8,504,875 8,589,923 8,675,823 8,762,581 8,850,207 8,938,709 9,028,096 9,118,377 9,209,56188,098,818 7. Cash Position After Measure G(5 plus 6)$2,180,206 7,906,800$ 7,185,154$ 7,151,941$ 5,709,223$ 4,953,375$ 3,225,811$ 746,618$ (1,414,182)$ (3,944,716)$ (7,067,426)$ (10,530,407)$ 6,015,393$ 8. Measure G UsesPolice Services Contract ᶜ100,000 - Capital Expenses990,873 4,969,464 3,731,561 3,859,103 3,764,59911,355,263 Measure G Reserves471,777 330,500- Public Safety Fund300,000 - 9. Total Measure G Uses1,462,650$ 5,699,964$ 3,731,561$ 3,859,103$ 3,764,599$ -$ -$ -$ -$ -$ -$ -$ 11,355,263$ 10. Cash Position After Measure G Uses(7 minus 9)717,556 2,206,836 3,453,593 3,292,838 1,944,624 4,953,375 3,225,811 746,618 (1,414,182) (3,944,716) (7,067,426) (10,530,407) (5,339,870) 11. RDA Loan RepaymentRepayment based on Last & 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 27,269,760 12. Cash Position After RDA Repayment(10 plus 11)2,544,437$ 4,648,456$ 5,944,046$ 5,833,100$ 4,535,690$ 7,596,263$ 5,921,557$ 3,496,279$ 1,390,472$ (1,083,969)$ (4,149,464)$ (7,554,086)$ 21,929,889$ OPERATING BUDGETMEASURE G SALES TAX BUDGETRDA LOANThe Adjusted Budget for 17/18 includes anticipated mid-year changes. Revenue projections are based on current economic conditions and historical trends. All assumptions include positive growth with no economic downturns. Expenditure projections are based on current operations, regulatory requirements, and anticipated increases. Measure G Uses Include:FY 16/17 Approved Uses:Eisenhower Dr. retention basin, Calle Tampico drainage improvementsFY 17/18 Approved Uses:Citywide drainage improvements, Village road diet, N. LQ landscape improvements, police servicesFY 18/19 Proposed Uses:Citywide drainage improvements, N. LQ landscape improvementsFY 19/20 & 20/21 Proposed Uses:N. LQ landscape improvements, corporate yard facilityRDA loan repayments end in 29/30. Additional revenue totals $5,784,105. OPERATING BUDGET NOTES:a - Fire Property Tax Reserve account balance as of June 30, 2017 is $9,371,699. These funds are held in trust by the County of Riverside and restricted for fire services. b - Intergovernmental revenue will experience a decrease of $300,000 in 18/19 due one-time revenue in 17/18 and lower administrative reimbursements from Redevelopment dissolution resulting from an approved last and final repayment schedule. c - SilverRock Resort Net Revenue includes revenue derived from sales tax, property tax, transient occupancy tax and development fees. d - Police and Fire services are provided by the County of Riverside and subject to the County's annual budget for services. e - Maintenance and operations includes utilities and internal services charges. f - Capital expenses for 16/17 included the Eisenhower Drive retention basin land purchase. Ongoing projections include minimum capital funding for street and sidewalk improvements required to secure Measure A and Gas Tax funding. g - Transfers Out support the Gas Tax Fund for street improvements, the Landscape and Lighting District, and SilverRock golf course. A decrease in 19/20 is anticipated due to the scheduled disposition of SilverRock. h - PERS unfunded pension liability projections are based on CalPERS actuarial valuations as of June 30, 2016. GENERAL FUND FINANCIAL PROJECTIONSEXHIBIT 2 CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2017 47 NOTE 4: CAPITAL ASSETS Capital asset activity for governmental activities for the year ended June 30, 2017, is as follows: Beginning Ending Balance at Balance at July 1, 2016 Additions Deletions Transfers June 30, 2017 Governmental activities: Capital assets, not being depreciated: Land 69,816,674$ 4,500,000$ -$ -$ 74,316,674 Right of way 284,928,794 - - - 284,928,794 Construction-in-progress 8,692,612 4,587,553 - (3,310,670) 9,969,495 Total Capital Assets, Not Being Depreciated 363,438,080 9,087,553 - (3,310,670) 369,214,963 Capital assets, being depreciated: Buildings and improvements 74,176,560 199,856 - 264,395 74,640,811 Equipment and furniture 3,442,965 39,957 --3,482,922 Vehicles 1,751,819 452,067 329,500 - 1,874,386 Infrastructure 218,399,541 - - 3,046,275 221,445,816 Total Capital Assets, Being Depreciated 297,770,885 691,880 329,500 3,310,670 301,443,935 Less accumulated depreciation for: Buildings and improvements 28,159,909 2,361,480 - - 30,521,389 Equipment and furniture 2,216,710 237,744 - - 2,454,454 Vehicles 1,563,715 68,123 329,500 - 1,302,338 Infrastructure 108,789,321 6,506,746 - - 115,296,067 Total Accumulated Depreciation 140,729,655 9,174,093 329,500 - 149,574,248 Total Capital Assets, Being Depreciated, Net 157,041,230 (8,482,213) - 3,310,670 151,869,687 Governmental Activities Capital Assets, Net 520,479,310$ 605,340$ -$ -$ 521,084,650 Depreciation expense was charged to the following functions in the Statement of Activities: General governments 634,400$ Planning and development 115,832 Community services 1,820,841 Public works 6,603,020 9,174,093$ EXHIBIT 3 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 12, 2018 STAFF REPORT AGENDA TITLE: DISUCSS THE YEAR-END MEASURE G SALES TAX REPORT RECOMMENDATION Discuss the year-end Measure G sales tax compliance report. EXECUTIVE SUMMARY •The Financial Advisory Commission (FAC) oversees Measure G sales tax funds. •An annual report is prepared to ensure adherence to the ballot measure. FISCAL IMPACT - None BACKGROUND/ANALYSIS Audited financial statements for 2016/17 were presented to Council on January 16, 2018. In accordance with the Measure G ballot measure, the FAC provides oversight of the funds. The Annual Measure G Sales Tax Oversight Report for Period Ending June 30, 2017 (Attachment 1) presents revenue and expenses through June 30, 2017. The Finance Department, in conjunction with a subcommittee of FAC members (Chairman Batavick, Commissioner Lopez, and Commissioner Mills), prepared the report. A brief update for 2017/18 is included in the report. ALTERNATIVES The Commission may request additional information. Prepared by: Karla Campos, Finance Director Approved by: Frank J. Spevacek, City Manager Attachment: 1.Annual Measure G Sales Tax Oversight Report for Period Ending June 30, 2017 STUDY SESSION ITEM NO. 2 1 2 ANNUAL MEASURE G SALES TAX OVERSIGHT REPORT FOR PERIOD ENDING JUNE 30, 2017 REVENUES Total Measure G sales tax revenues for the period April 1, thru June 30, 2017 were $1,462,650. This compares with the original budget estimate of $1 million. Actual tax revenues exceeded the budget estimate due to: - Higher than anticipated collection and reporting compliance - Higher levels of purchased goods from neighboring cities for delivery within the City of La Quinta - Conservative original estimates due to the lack of history. For the fiscal year ending June 30, 2018, Measure G tax revenues are estimated to be $8 million. Voters passed Ballot Measure G in November 2016. Measure G provides a one percent transaction and use tax, effective April 1, 2017, which is fully allocated to the City of La Quinta. Tax revenues received will be used to maintain services and programs and for needed infrastructure improvements. The Financial Advisory Commission (FAC) provides oversight of these tax revenues. The first Annual Measure G Sales Tax Oversight Report covers the period April 1, thru June 30, 2017, and provides estimates for fiscal year ending June 30, 2018. FEBRUARY 6, 2018 BACKGROUND EXPENDITURES There were no programmed expenditures for the period April 1, thru June 30, 2017 using Measure G tax revenues because these revenues were not received until late June. Since then, $990,873 of the $1,462,650 tax revenues received was appropriated for two drainage improvement projects; the Eisenhower Drive retention basin ($750,000) and the Calle Tampico drainage study ($240,873). The remaining $471,777 was assigned to reserves pending Council appropriation. For the fiscal year ending June 30, 2018, programmed expenditures are estimated to be $5,369,500 and entail parkway landscape improvements in North La Quinta, citywide drainage improvements, the Village Road Diet, and a Public Safety Services Fund. The remaining balance of $2,630,500 was assigned to reserves pending Council appropriation. ATTACHMENT 1 All Measure G revenues shall be used in accordance with the ballot measure for costs including police protection, projects such as parks, landscaping and flood control, programs attracting businesses, youth/senior services, and sports recreation programs. Pictures of North La Quinta landscape improvements are featured in this report. ANALYSIS CONCLUSION Measure G tax revenues are being used in accordance with the ballot measure requirements. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 12, 2018 STAFF REPORT AGENDA TITLE: APPOINT TWO COMMISSIONERS TO SERVE ON THE REVIEW AND SELECTION COMMITTEE FOR THE REQUEST FOR PROPOSAL FOR BANKING SERVICES RECOMMENDATION Appoint two commissioners to serve on the review and selection committee for the request for proposal for banking services. EXECUTIVE SUMMARY •The City will issue a Request for Proposal (RFP) for banking services in March. •Staff recommends the Financial Advisory Commission (FAC) appoint two Commissioners to serve on the review and selection committee. •A final recommendation for banking services will be provided to Council by June. FISCAL IMPACT – None BACKGROUND/ANALYSIS The City has banked with Wells Fargo since 2003 and the contract has been renewed twice (in 2011 and 2014). Over the years, banking institutions have consolidated, and regulatory requirements have increased, leaving only a few options for government banking services. Staff is preparing the RFP with the following schedule: Issue RFP March 16 Proposals Due April 20 Proposal Reviews April 23-30 Internal Review of Proposals May 2nd Proposer’s Presentation and Oral Interviews May 16th Selection Made June 19, Council meeting Business Item No. 1 1 The evaluation and selection process will require in-person meetings and an individual review and scoring of qualified proposals. Proposals will be evaluated based on the following criteria: Qualifications and Experience: The organization, affiliations, branch locations, financial experience, independent bank rating agency reports, and compliance and good standing reports. Fees: One-time and recurring fees for all services including management, administrative, and transactional. Structure: The different parties to the agreement, such as trustee and investment manager, as well as legal structure of the trust. Start-up cost and effort: Level of staff, legal, and other efforts to establish the banking relationship. Ongoing administration: Level of effort to maintain the trust, ensure that the program is properly functioning, and monitoring performance; in addition to reporting and consulting support provided by the trust. Accessibility and Services: Accessibility to branch locations and services offered by the banking institution. Other considerations: Integration with current financial software, credit card services, online reporting and accessibility, and fraud prevention and detection. ALTERNATIVES Select one Commissioner to the committee or none. Prepared by: Karla Campos, Finance Director 2 MEMORANDUM TO: Commissioners of the Financial Advisory Commission FROM: Jessica Delgado, Management Assistant DATE: February 12, 2018 SUBJECT: Commissioner Johnson’s Items 1.DISCUSS AUTO DEALERSHIPS’ PROPOSED IMPROVMENTS ALONG HIGHWAY 111 FRONTAGE 2.DISCUSS MEASURE G PROJECT SIGNS 3.DISCUSS APPRORIATION OF FUNDS FROM UNASSIGNED RESERVES TO THE LAND ACQUISITION FUND FOR PROPERTY ACQUISITION City of La Quinta CITY COUNCIL MEETING: January 16, 2017 STAFF REPORT AGENDA TITLE: DISCUSS AUTO DEALERSHIPS’ PROPOSED IMPROVEMENTS ALONG HIGHWAY 111 FRONTAGE RECOMMENDATION Review and discuss the auto dealerships Highway 111 frontage proposed improvements. EXECUTIVE SUMMARY •In November of 2015, Council directed staff to collaborate with Highway 111 auto dealerships to configure an auto display south of the sidewalk for a trial period. •The trial period was successful for the dealerships and they have submitted aimproved frontage display. •This proposed frontage display (Attachment 1) would be the first rejuvenation project for Highway 111 south of Adams and add new display pads (55), sidewalk, irrigation, landscaping and signage. FISCAL IMPACT The City’s portion of the project would be $500,000. Funding is available from savings of previously completed CIP project General Funds that have not been re-allocated. BACKGROUND/ANALYSIS In October of 2015, Direct Point Advisors (DPA) and representatives from each auto dealership made a presentation to Council announce efforts to revive the regional auto dealership branding. Thereafter, staff and DPA have engaged in preliminary information exchanges. The collective dealerships are interested in seeking City cooperation and partnership to optimize branding and visibility. The group’s requests for assistance include the following: •Expand display area along Highway 111 frontage for Cadillac/Chevrolet, Hyundai and Nissan; •Design and placement of signage and inventory; •Secure approvals for select design elements, lighting, and rebrand of La Quinta Auto Center; •Repurpose street roundabouts for vehicle displays; Commissioner's Item No. 1 •Explore joint venture opportunities for recycled water irrigation to landscaping/frontage areas; and •Assist in defining funding solutions to accomplish improvements. Staff is seeking direction to proceed with further improvements on Highway 111 east of Adams. Prepared by: Gil Villalpando, Business Analyst Approved by: Frank J. Spevacek, City Manager Attachment: 1. Highway 111 Dealership frontage proposal La Quinta Auto Mall Highway 111 Improvements Proposal Friday May 26, 2017 PREPARED FOR: Michael Hastings DIRECT POINT ADVISORS Los Angeles, CA PREPARED BY: Matt Menlove UNITED CONTRACTORS 10725 Ellis Avenue, Suite D Fountain Valley, CA 92708 (949) 945-0905 mattmenlove@buildwithunited.com United Contractors 10725 Ellis Avenue, Suite D Fountain Valley, CA 92708 P: (949) 945-0905 United Contractors, Inc. 10725 Ellis Ave Fountain Valley, Ca 92660 949-945-0905 www.buildwithunited.com Dear Michael, We appreciate the opportunity to provide a bid for the La Quinta Auto Mall Highway 111 Improvements project, located at Highway 111 in La Quinta, CA. Please note that this price is based on the following Contract Documents provided (Drawings, Photos, from the Plan Room) by , dated 05/24/2017, field observations of the space, and the attached scope of work. The Scope: Design Build Landscape / Hardsacape Improvements along Highway 111 Manage preconstruction design process with landscape Architect, Electrical Engineer & Civil Engineer Process Permits through City of La Quinta Remove Existing Sidewalk and Landscape Materials Grade area to accept new Landscape / Hardscape Install new City Sidewalk along Hignway 111 Install new Paver retaining wall and Paver Display pads Install Uplighting for Car Display Install new Irrigation and Landscaping Prep area for new Signs Install new signs per attached Renderings Clean up area and Deliver to Clients for Car Display Please do not hesitate to call if you have questions while reviewing this Bid Proposal. Sincerely, Matt Menlove United Contractors, Inc. United Contractors 10725 Ellis Avenue, Suite D Fountain Valley, CA 92708 P: (949) 945-0905 Revision:Original La Quinta Auto Mall Highway 111 Improvements Highway 111 La Quinta, CA 92247 Printed On: 05/26/2017 Division Total 01 General Conditions $175,922.36 01-001.OH General Conditions $1,033.26 01-005.L Preconstruction Services $13,902.60 01-009.L Civil Engineering $36,164.10 01-010.S Surveying $10,332.60 01-060.M Reimbursable $4,135.49 01-081.S Building Permit Fee $7,749.45 01-210.OH Contractors Contingency $30,997.80 01-213.S Engineering Fees $3,616.41 01-214.S Landscape Design $10,332.60 01-300.L Superintendent $27,805.20 01-314.L Project Manager $13,902.60 01-315.O Project Vehicle $3,099.78 01-370.L Estimator $4,865.91 01-380.L Project Staff $6,951.30 01-528.O Computer $1,033.26 02 Site Work $403,601.69 02-001.S Mobilization $3,099.78 02-110.S Dust Protection $8,782.71 02-125.S Special Inspections $10,332.60 02-180.S Temp Fence $5,682.93 02-190.S Temp Water $2,583.15 02-227.S Demolition $32,444.36 02-310.S Grading $16,222.18 02-754.S Site Concrete $26,410.13 02-780.S Pavers $178,753.98 02-900.S Landscaping $119,289.87 16 Electrical $324,443.64 16-200.S Electrical $173,587.68 16-550.S Electric signs $150,855.96 Permit $0.00 10% Fee $90,396.80 Total $994,364.49 Cost/Sq. Foot (Sq Ft): 50,000.00 $19.89 - MATCH LINE -o~GXXXh|{vGjlu{lyG~hGzUshGx|pu{hGkyp}lPHASE 1HWY 111 DISPLAY FRONTAGEPRELIMINARY LANDSCAPE DESIGNLA QUINTA AUTO COLLECTION:77-899 WOLF RD.PH. (760) 777-9131FAX (760) 777-9132PALM DESERT, CALIC# 2754, EXP 04/30/1692211HERMANNDESIGNGROUPSUITE 102 &21&(378$/'(6,*1$1''(9(/230(17$SULO)2535(3$5('%<&,7<2)/$48,17$+(50$11'(6,*1*5283$872&2//(&7,21 6&$/(µ ·µ(;,67,1*&21',7,216 $872&2//(&7,21$872&2//(&7,21$$8772&&22////((&7,21/,1($56&8/3785(02817$,16&$3(9$5<,1*'(37+6$1'',0(16,21&20%,1(':,7+&2175$67,1*$*('0(7$/6&5($7($'<1$0,&%$&.'523$1'&$55,(5)25'($/(5%5$1',0$*(6 $872&2//(&7,21$872 &2//(&7,216&$/(µ ·µ6&$/(µ ··µµ·µ$872&2//(&7,21$872&2//(&7,21$872 &2//(&7,21$872 &2//(&7,2111,*+79,(:,17(51$//(',//80,1$7,21$6:(//$6/$1'6&$3(83/,*+7672$&&(178$7(7+(%$&.'523'(37+$1'',0(16,21 ·µ··6&$/(µ ·µ$872&2//(&7,21         1 Measure G Project signs 2    23 24 2/12/2018 1 Financial Advisory Commission Meeting February 12, 2018 Financial Advisory Commission February 12, 2018 S1‐Discuss Reserve Policy Analysis and Findings C3‐Receive and File the 4th Quarter Fiscal Year 2/12/2018 2 Reserve Study Process •Council directed staff and Financial Advisory Commission (FAC) to review reserves •FAC Sub ‐committee formed •Multiple meetings •Research and analysis •FAC reviewed Draft findings Scope of Analysis •Current reserve funding •Reserve categories •Best practices of Government Finance Officers Association (GFOA) •Revenue and expenditure sources, volatility, and growth projections •Risk mitigation and insurance review (ongoing) •City infrastructure review (ongoing) 2/12/2018 3 Current Fund Balance Descriptions •Non‐spendable: non‐liquid assets such as land and receivables •Restricted: limited to special purpose funds such as Measure A (transportation), Gas Tax Fund (streets) and Quimby Funds (parks) •Committed: cash flow, emergency, and operating carryovers •Assigned:constrained by the City’s intent to use funds for public safety or capital projects •Unassigned (Unappropriated): net reserves available after satisfying the other reserve categories. Reserve/Fund Balance As Of 6/30/2017 Non-Spendable Prepaid Costs 10,578$ Land Held for Resale 8,320,000$ Advances to Other Funds 15,022,660$ Due from Other Governments 29,154,040$ Total Non-Spendable 52,507,278$ Committed Working Capital Reserve (10%)4,134,000$ Emergency Reserve (40%)16,534,000$ Post Retirement Health Benefits 1,523,400$ Carryovers 120,000$ Total Committed 22,311,400$ Assigned Public Safety Fire Services 9,371,699$ Capital Projects 6,322,570$ Total Assigned 15,694,269$ Unassigned 16,949,526$ TOTAL FUND BALANCE 107,462,473$ 2/12/2018 4 Proposed Reserve/Trust Categories •Emergency –Natural Disaster –Economic Downturn •Cash Flow •CIP Sinking Fund •Unassigned/Unappropriated •Unfunded Pension Liability Recommendations •Follow current guiding principles •Maintain 10‐year Long Range Financial Plan •Two components of Emergency Reserves – Economic and Natural Disasters •Add economic downturn definition to allow access to reserves 2/12/2018 5 Recommendations •Cash flow reserve based on annual revenue and expenditure review •Establish CIP Sinking Fund •Establish trust for unfunded pension liability •Utilize unassigned reserves to fund recommendations Reserve/Trust Recommendations Reserve/Trust Reserve Target Current Funding Over/(Under) Funded Emergency Reserve Natural Disaster TBD 16,534,000 16,534,000 Economic Disaster 11,000,000 - (11,000,000) Total TBD 16,534,000 5,534,000 Cash Flow Reserve 5,000,000 4,134,000 (866,000) CIP Sinking Fund 10,000,000 - (10,000,000) Total Reserves 26,000,000 20,668,000 (5,332,000) Pension Trust Fund 10,000,000 - (10,000,000) Unassigned Reserves - 16,949,526 16,949,526 Overall Total 36,000,000 37,617,526 1,617,526 2/12/2018 6 Next Steps •Finalize studies related to risk and assets •Incorporation of ideas from today’s discussion Discussion and Questions 2/12/2018 7 Financial Advisory Commission February 12, 2018 S2‐Discuss Year End Measure G Sales Tax Report C3‐Receive and File the 4th Quarter Fiscal Year Measure G Oversight Annual Report Transaction and use sales tax Implemented on April 1, 2017 Oversight by Financial Advisory Commission Reporting period April – June 2017 2/12/2018 8 Revenues 16/17 Actual 1,462,650$ 17/18 Budgeted 8,000,000 TOTAL 9,462,650 Expenses Operational % of Operational Capital % of Capital Reserves 16/17 Eisenhower Dr. Retention Basin 750,000 13% Calle Tampico Drainage Improvements 240,873 4% Measure G Reserves 16/17 471,777 17/18 Public Safety Fund 300,000 75% Public Safety Services 100,000 25% North La Quinta Landscape Improvements 1,802,600 30% Citywide Drainage Enhancements 2,166,500 36% La Quinta Village Road Diet Project 1,000,400 17% Measure G Reserves 17/18 2,630,500 TOTAL 400,000$ 100% 5,960,373$ 100% 3,102,277$ MEASURE G REVENUE AND EXPENSE REPORT COMPLIANCE Current Year Updates •Revenue trending higher than initial c onservative estimates •Driven by automotive, furniture, and online purchases delivered to La Quinta 2/12/2018 9 Financial Advisory Commission February 12, 2018 B1‐Appoint Two Commissioners to Serve on the Selection Committee for Banking Services C3‐Receive and File the 4th Quarter Fiscal Year RFP for Banking Services Timeline Event Target Date Issue RFP March 16 Proposals Due April 20 Proposals Review April 23‐30 Internal Review of Proposals May 2 Proposer’s Presentation and Oral Interview May 16 Selection Made June 19, Council Meeting 2/12/2018 10 Financial Advisory Commission February 12, 2018 Commissioners’ Items 1. DISCUSS AUTO DEALERSHIPS’ PROPOSED IMPROVEMENTS ALONG HIGHWAY 111 FRONTAGE 2. DISCUSS MEASURE G PROJECT SIGNS 3. DISCUSS APPROPRIATION OF FUNDS FROM UNASSIGNED RESERVES TO THE LAND ACQUISITION FUND FOR PROPERTY ACQUISITION C3‐Receive and File the 4th Quarter Fiscal Year 2/12/2018 11 Financial Advisory Commission Next Meeting is on April 11, 2018