The URL can be used to link to this page

2018 05 09 FACFINANCIAL ADVISORY COMMISSION AGENDA 1 MAY 9, 2018 REGULAR QUARTERLY MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL STUDY SESSION ROOM 78-495 Calle Tampico, La Quinta REGULAR QUARTERLY MEETING ON WEDNESDAY, MAY 9, 2018 AT 4:00 P.M. 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 1.PUBLIC AGENCY RETIREMENT SERVICES CONFIRMATION OF AGENDA CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1.APPROVE MINUTES DATED APRIL 11, 2018 2.RECEIVE AND FILE THE THIRD QUARTER FISCAL YEAR 2017/18 TREASURY REPORTS FOR JANUARY, FEBRUARY, AND MARCH 2018. Financial Advisory Commission agendas and staff reports are now available on the City’s web page: www.laquintaca.gov/ FINANCIAL ADVISORY COMMISSION AGENDA 2 MAY 9, 2018 REGULAR QUARTERLY MEETING STUDY SESSION 1.DISCUSS PRELIMINARY PROPOSED BUDGET FOR FISCAL YEAR 2018/19 BUSINESS SESSION 1.REVIEW THE CITY'S GENERAL FUND BALANCE AND RESERVES POLICY 2.APPROVE INVESTMENT POLICY FOR FISCAL YEAR 2018/19 DEPARTMENTAL REPORTS - NONE COMMISSIONERS’ ITEMS ADJOURNMENT The next regular quarterly meeting of the Financial Advisory Commission will be held on August 8, 2018 commencing at 4:00 p.m. at the La Quinta City Hall 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 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 at 51-321 Avenida Bermudas, on May 4, 2018. DATED: May 4, 2018 Jessica Delgado, Management Assistant City of La Quinta, California Public Notices The La Quinta City Hall Study Session 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 an FAC meeting, please be advised that eight (8) 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. FINANCIAL ADVISORY COMMISSION MINUTES 1 APRIL 11, 2018 SPECIAL MEETING FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, APRIL 11, 2018 CALL TO ORDER A special meeting of the La Quinta Financial Advisory Commission was called to order at 4:00 p.m. by Chairperson Batavick. PRESENT: Commissioners: Johnson, Lopez, Mills, Rosen, Turbow, Twohey, and Chairperson Batavick ABSENT: None PLEDGE OF ALLEGIANCE Commissioner Johnson led the audience in the pledge of allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1.UPDATE ON PUBLIC SAFETY CAMERA SAFETY REVIEW Public Safety Analyst Moreno and Public Safety Manager Mendez explained the purpose of the Citywide Security Cameras Ad Hoc Committee; its current projects; community outreach; relevant research timeline; required infrastructure to implement a citywide security cameras system; and grant opportunities. Commission discussion followed regarding initial maintenance costs; undergoing additional research; criteria used to identify appropriate camera locations; and privacy concerns. 2.PROFESSIONALLY MANAGED INVESTMENT PORFOLIO Senior Vice President Relationship Manager Mia Corral and Senior Vice President Portfolio Strategist Carlos Oblites introduced Chandler Asset Management, a firm specializing in investment management for public agencies and provided information on the firms background and qualifications; investment portfolio characteristics; and a sample investment portfolio based on the City’s publically available reports and financial documents. CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES 2 APRIL 11, 2018 SPECIAL MEETING CONSENT CALENDAR ITEMS 1.APPROVE FINANCIAL ADVISORY COMMISSION MINUTES OF FEBRUARY 12, 2018 2.RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED JANUARY 31 AND FEBRUARY 28, 2018 Motion – A motion was made and seconded by Commissioners Johnson/Lopez to approve the Consent Calendar as submitted. Motion passed unanimously. STUDY SESSION 1.DISCUSS THE PRELIMINARY BUDGET FOR FISCAL YEAR 2018/19 Finance Director Campos presented the staff report, which is on file in the Finance Department. The Commission discussed proposed Measure G revenue and expenses; and the anticipated timeline for Council and the Commission to review the annual budget. 2.DISCUSS FISCAL YEAR 2018/19 INVESTMENT POLICY Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission discussed the proposed changes to the policy; pros and cons of having professionally managed accounts and an investment portfolio; and streamlining the investment policy to eliminate redundancies. 3.DISCUSS RESERVE ANALYSIS REPORT AND COUNCIL RECOMMENDATION Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission discussed the Council’s direction and next steps; reserve categories; and allocation methods and funding options for ongoing funding of the different categories. BUSINESS SESSION 1.APPROVE FISCAL YEAR 2018/19 MEETING DATES Finance Director Campos presented the staff report, which is on file in the Finance Department. Motion – A motion was made and seconded by Commissioners Johnson/Lopez to approve fiscal year 2018/19 meeting dates. Motion passed unanimously. FINANCIAL ADVISORY COMMISSION MINUTES 3 APRIL 11, 2018 SPECIAL MEETING DEPARTMENTAL REPORTS All departmental reports are on file in the Finance Department. 1.THIRD QUARTER 2017 (JULY-SEPTEMBER 2017) SALES TAX UPDATE FOR THE CITY OF LA QUINTA 2.REVISIONS TO PURCHASING POLICY UPDATE 3.DEBT MANAGEMENT POLICY UPDATE CORRESPONDENCE AND WRITTEN MATERIAL – None COMMISSIONERS’ ITEMS 1.CITY COUNCIL MEETING SUMMARY EMAILS The Commission discussed updates on City Council agenda items and meetings. Finance Director Campos said staff would send the Commission email updates regarding the outcome of items from City Council meetings. 2.DOCUMENT REVIEW ADVANCE NOTICES The Commission requested that documents are provided sooner to allow more time for review. 3.UPDATE ON MEETING WITH MAYOR EVANS Commissioners commended Chairperson Batavick for taking the time to meet with Mayor Evans on behalf of the Commission. Chairperson Batavick said he mentioned to Mayor Evans the willingness of the Financial Advisory Commission to assist the City in any way Council may determine to be appropriate. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Johnson/Lopez to adjourn this meeting at 6:10 p.m. Motion passed unanimously. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: May 9, 2018 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE THIRD QUARTER 2017/18 TREASURY REPORTS FOR JANUARY, FEBRUARY, AND MARCH 2018 RECOMMENDATION Receive and file the third quarter fiscal year 2017/18 Treasury Reports for January, February, and March 2018. BACKGROUND/ANALYSIS Commentary and Summary of Significant Activity The portfolio increased $6.95 million, from $125.09 million to $132.04 million. The increase reflects revenue, expenditure, and investment activities during the quarter. Throughout the quarter, four CDs and one US Treasury bond matured for a total PAR value of $2,984,000. This money was reinvested, along with an additional $251,000, in six new investments (three CDs, one agency bond, one Treasury, and one corporate bond). These new investments are summarized in the table below and also in the attached reports. Market conditions in the third quarter of 2017/18 allowed for trading to realize gains, increase yields, and spread maturities. The market continued to react to the political climate and economic news, and staff worked with the City’s broker to capitalize on market conditions. The fiscal year annual effective rate of return is 1.18% as of March, a 12 bps increase since December. Issuer Type Par Value Purchase Date Coupon Rate Maturity Microsoft Corporate $ 500,000 1/22/2018 1.850 2/6/2020 U.S. Treasury Treasury $ 1,000,000 1/22/2018 1.500 8/15/2020 Third Federal Savings CD 245,000$ 1/30/2018 2.500 1/31/2022 Federal Home Loan (FreddieMac)Agency 1,000,000$ 1/30/2018 2.550 1/30/2023 Unity Bank CD 245,000$ 3/16/2018 2.550 3/16/2021 Aneca Federal Credit Union CD 245,000$ 3/22/2018 2.800 3/22/2023 Investments by Purchase Date CONSENT CALENDAR ITEM NO. 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 January 1, 2018 to March 31, 2018 Investment Type January February March Max Allowed Bank Accounts 4% 7% 3% 85% Local Agency Investment Fund (LAIF) Housing 18% 18% 18% (2) Local Agency Investment Fund (LAIF) City 37% 33% 38% (1) Federal Agency Coupons 13% 12% 13% 30% Treasury Coupons 13% 13% 12% 100% Certificates of Deposit (CD's)11% 11% 12% 30% Corporate Notes 3% 2% 3% 10% Money Markets with Fiscal Agent 0% 3% 0% (2) Managed Pool Accounts-OPEB Trust (new)1% 1% 1% (3) Total 100% 100% 100% Portfolio Allocations (3) OPEB trust is a fiduciary account and not subject to City investment policy Percent of Portfolio (1) LAIF is subject to maximum dollar amount not a percentage of the portfolio (2) Money market with fiscal agent and LAIF Housing funds are governed by bond indentures and not subject to City investment policy Total Earnings Average Days to Maturity January 161,045.34$ 358 February 149,305.15$ 339 March 162,758.59$ 363 Quarter 473,109.08$ 353 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value January 31, 2018 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 171,455.89 171,455.8907/01/2016 171,455.89 1SYS1062 0.000 1Wells Fargo1057 4,678,241.07 4,678,241.0707/01/2016 4,678,241.07 14159282482 0.000 1Washington St Apt La Quinta1061 1,199,178.23 1,199,178.2307/01/2016 1,199,178.23 1SYS1061 0.000 6,050,575.19 16,050,575.196,050,575.192,846,220.10Subtotal and Average 1 0.000 Local Agency Invstmnt Fund-Housing 1Local Agency Inv Fund1113 25,647,385.17 25,647,385.17 1.35010/31/2017 25,647,385.17 125-33-005 1.350 25,647,385.17 125,647,385.1725,647,385.1725,630,486.73Subtotal and Average 1 1.350 Local Agency Investment Fund-City 1Local Agency Inv Fund1055 51,703,382.37 51,703,382.37 1.35051,637,365.61 198-33-434 1.350 51,703,382.37 151,637,365.6151,703,382.3749,851,385.37Subtotal and Average 1 1.350 Federal Agency Coupon Securities 526Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 983,910.00 7323133EGLC7 1.456 1,308Federal Farm Credit Bank1105 1,000,000.00 992,200.00 09/01/20211.70011/09/2017 974,400.00 1,3923133EHWM1 1.913 1,182Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,408,975.00 1,8263130A7QZ1 1.423 998Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,430,500.00 1,4613130A9UQ2 1.375 953Federal Home Loan Bank1104 1,000,000.00 996,800.00 09/11/20201.62511/09/2017 983,460.00 1,0373130A66T9 1.741 1,182Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.25004/28/2016 2,459,125.00 1,8263134G8Y37 2.115 1,517Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,946,600.00 1,8263134GBAE2 2.106 1,427Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 975,600.00 1,6373134GBXF4 2.012 1,637Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 974,790.00 1,8263134GBWG3 2.150 1,824Federal Home Loan Mtg Corp1116 1,000,000.00 1,000,000.00 01/30/20232.55001/30/2018 991,570.00 1,8263134GSCD5 2.550 725Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,973,300.00 1,0363135G0S53 1.700 17,462,350.00 1,54117,102,230.0017,500,000.0016,526,866.13Subtotal and Average 1,175 1.812 Treasury Coupon Securities 1,245U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,796,100.00 1,808912828S27 1.125 256U.S. Treasury1063 2,500,000.00 2,502,250.00 10/15/20180.87510/24/2016 2,483,700.00 721912828L81 0.829 789U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,457,225.00 1,107912828J84 1.602 682U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,465,525.00 1,000912828U73 1.513 1,368U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,916,880.00 1,679912828T67 1.903 Portfolio CITY CP Run Date: 04/18/2018 - 10:39 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 January 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Treasury Coupon Securities 58U.S. Treasury1071 2,000,000.00 1,998,125.00 03/31/20180.87503/27/2017 1,998,320.00 369912828Q45 0.968 287U.S. Treasury1103 500,000.00 498,840.00 11/15/20181.25011/09/2017 497,600.00 371912828M64 1.481 926U.S. Treasury1117 1,000,000.00 985,800.00 08/15/20201.50001/22/2018 981,720.00 9369128282Q2 2.071 17,901,815.00 1,18417,597,070.0018,000,000.0017,234,015.00Subtotal and Average 802 1.333 Certificate of Deposits 473First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 239,388.00 1,82631938QH72 1.751 658First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 238,029.60 853320165HX4 1.653 271First Merchants Bank1020 240,000.00 240,000.00 10/30/20181.50004/30/2014 240,252.00 1,64432082BDF3 1.501 1,460Third Federal Savings and Loan1112 245,000.00 245,000.00 01/31/20222.50001/30/2018 245,678.65 1,46288413QBY3 2.233 1,715Alliance Credit Union1095 245,000.00 245,000.00 10/13/20222.25010/13/2017 241,670.45 1,82601859BAA3 2.251 326Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 239,716.80 1,09602006LWX7 1.702 1,173Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 237,897.60 1,46102587DP85 2.252 1,670American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 237,513.60 1,82602587CFU9 2.402 1,727Barclays Bank1097 240,000.00 240,000.00 10/25/20222.30010/25/2017 237,182.40 1,82606740KLJ4 2.301 1,390Belmont Savings Bank1102 245,000.00 245,000.00 11/22/20212.10011/21/2017 242,224.15 1,462080515CD9 2.101 88Berkshire Bank1004 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,040.80 1,461084601AL7 1.351 1,484BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 237,787.20 1,82605580AGK4 2.201 1,078Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 236,316.00 1,28006610RAP4 1.804 1,222Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 239,042.40 1,46114042RGD7 2.252 860Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 243,387.90 1,827140420RX0 1.902 46Carolina Alliance1007 248,000.00 248,000.00 03/19/20181.00006/19/2015 247,883.44 1,00414376RAM9 1.000 1,117Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 235,389.60 1,82720033APG5 1.702 194CIT Bank UT1008 240,000.00 240,000.00 08/14/20181.90008/14/2013 240,388.80 1,82617284CKN3 1.901 1,259Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 235,766.40 1,46115523RBJ4 1.851 124Compass Bank1010 248,000.00 248,000.00 06/05/20181.35006/05/2015 247,858.64 1,09620451PLG9 1.351 489Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 246,936.08 1,46120786ABD6 1.501 88Cornerstone Community Bank1012 240,000.00 240,000.00 04/30/20181.35004/30/2014 239,932.80 1,461219240AZ1 1.351 88Crescent Bank and Trust1013 240,000.00 240,000.00 04/30/20181.30004/30/2014 239,904.00 1,461225645DC1 1.301 1,751CrossFirst Bank1106 245,000.00 245,000.00 11/18/20222.20011/20/2017 240,832.55 1,82422766ACB9 2.201 1,461Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 238,384.80 1,8262546722U1 2.251 719Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 237,602.40 916259744DS6 1.655 43Embassy National1015 248,000.00 248,000.00 03/16/20181.00006/17/2015 247,952.88 1,003290800AL5 1.000 1,761Enterprise Bank, NA1107 245,000.00 245,000.00 11/28/20222.15011/28/2017 240,195.55 1,82629367QCP1 2.151 453Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 240,201.60 1,826294209AQ4 1.651 855EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 244,981.84 1,82729976DXX3 1.702 Portfolio CITY CP Run Date: 04/18/2018 - 10:39 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value January 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 369Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 246,489.68 1,341307814DC4 1.252 1,055Freedom Credit Union1111 245,000.00 245,000.00 12/22/20202.05012/22/2017 243,106.15 1,09635638BAA9 2.052 473Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 239,385.60 1,827402194EB6 1.724 1,545Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 239,316.00 1,82638148PJK4 2.401 893First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 237,139.20 1,096319141GT8 1.752 1,624HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 237,888.00 1,82640434YLE5 2.301 831Jefferson Bank & Trust1100 245,000.00 245,000.00 05/12/20201.75011/09/2017 242,425.05 915472376AC6 1.751 1,566Kansas State Bank1101 245,000.00 245,000.00 05/17/20222.10011/17/2017 241,192.70 1,64250116CBE8 2.099 1,792Knoxville TVA Credit Union1110 245,000.00 245,000.00 12/29/20222.40012/29/2017 242,765.60 1,826499724AB8 2.401 124MB Financial Bank1027 248,000.00 248,000.00 06/05/20181.10006/05/2015 247,766.88 1,09655266CME3 1.101 83Medallion Bank1028 240,000.00 240,000.00 04/25/20181.35004/25/2014 239,944.80 1,46158403BL95 1.351 887Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 237,172.80 1,09658740XZL7 1.752 130MFR Trade & Trust1026 248,000.00 248,000.00 06/11/20181.20006/10/2015 247,712.32 1,097564759QT8 1.033 862Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 244,642.08 1,827063615AVO 1.652 655Morgan Stanley Bank1109 245,000.00 245,000.00 11/18/20191.80011/16/2017 243,662.30 73261747MA92 1.800 314Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,345.28 1,279619165GE7 1.251 97Merrick Bank1029 240,000.00 240,000.00 05/09/20181.35005/09/2014 240,043.20 1,46159012Y6Q5 1.351 655Morgan Stanley Private Bk, NA1108 245,000.00 245,000.00 11/18/20191.75011/16/2017 243,449.15 73261760AEP0 1.750 1,741Mountain America Federal CU1099 245,000.00 245,000.00 11/08/20222.30011/08/2017 242,013.45 1,82662384RAC0 2.301 1,448The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 235,243.20 1,645677721CN0 1.903 481Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 240,139.20 1,826704692AL6 1.801 1,210PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 234,110.40 1,82674267GVG9 1.501 165Regal Bank1033 240,000.00 240,000.00 07/16/20181.40005/16/2014 240,069.60 1,52275874TAH4 1.401 1,026Fist Bank RIchmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 241,577.35 1,251319267GC8 1.802 581Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 246,732.72 1,55376951DAL4 1.402 1,601Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 238,512.00 1,826795450A70 2.351 67South Atlantic1036 248,000.00 248,000.00 04/09/20181.00006/09/2015 247,806.56 1,03583637AAP9 1.001 488Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 246,938.56 1,46183427LAX2 1.401 810Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 236,805.60 1,096857894TC3 1.588 1,582Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 239,114.40 1,82687164XQV1 2.401 446Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 240,187.20 1,82694768NJQ8 1.801 390Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 239,400.00 1,0969497483N5 1.201 15,054,000.00 1,47614,950,435.9615,054,000.0015,129,580.65Subtotal and Average 838 1.754 Portfolio CITY CP Run Date: 04/18/2018 - 10:39 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Maturity Date Stated RateMarket Value January 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Corporate Notes 1,280Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 481,540.00 1,514037833CC2 1.900 393Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,980,640.00 702478160BR4 1.305 735Microsoft Corporation1118 500,000.00 497,700.00 02/06/20201.85001/22/2018 495,425.00 745594918BV5 2.081 624Toyota Motor Credit Corp1098 500,000.00 498,750.00 10/18/20191.55011/07/2017 494,095.00 71089236TDH5 1.681 3,482,700.00 8243,451,700.003,500,000.003,145,548.39Subtotal and Average 601 1.554 Money Market with Fiscal Agent 1US Bank1058 3,498.30 3,498.3007/01/2016 3,498.30 1SYS1058 0.000 3,498.30 13,498.303,498.303,496.63Subtotal and Average 1 0.000 Managed Pool Accounts-OPEB Trust 1CalPERS CERBT Plan1114 1,529,867.37 1,529,867.3712/18/2017 1,529,867.37 1SYS1114 0.000 1,529,867.37 11,529,867.371,529,867.371,529,867.37Subtotal and Average 1 0.000 528131,897,466.35 138,988,708.40 358 1.381137,970,127.60 138,835,573.40Total and Average Portfolio CITY CP Run Date: 04/18/2018 - 10:39 PM (PRF_PM2) 7.3.0 Days to Maturity Page 5 Par Value Book Value Stated RateMarket Value January 31, 2018 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 0.00 528131,897,466.35 138,988,708.40 358 1.381 0 0 120.99 120.99 120.99 120.99 Subtotal Accrued Interest at PurchaseAverage Balance 137,970,248.59 138,835,694.39Total Cash and Investments Portfolio CITY CP Run Date: 04/18/2018 - 10:39 PM (PRF_PM2) 7.3.0 City of La Quinta Total Earnings City of La Quinta - Sorted by Fund - Fund January 1, 2018 - January 31, 2018 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 395.35 0.00 395.351.900101245,000.00140420RX0 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 315.94 0.00 315.941.500101248,000.0020786ABD6 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 358.08 0.00 358.081.700101248,000.0029976DXX3 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 305.76 0.00 305.761.500101240,000.0032082BDF3 0.00 240,000.001024240,000.00 1.750GCB 356.71 0.00 356.711.750101240,000.00402194EB6 0.00 0.0010250.00 0.900INDEP 67.27 0.00 67.270.900101248,000.0045383UQY4 0.00 248,000.001026248,000.00 1.200MFR 252.75 0.00 252.751.200101248,000.00564759QT8 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 263.29 0.00 263.291.250101248,000.00619165GE7 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 305.76 0.00 305.761.500101240,000.0074267GVG9 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 294.89 0.00 294.891.400101248,000.0083427LAX2 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: 04/24/2018 - 16:46 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 January 1, 2018 - January 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 0.0010380.00 1.2503RD 230.13 0.00 230.131.250101240,000.0088413QAN8 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 5,000,000.0010455,000,000.00 1.125USTR 4,816.99 0.00 4,816.991.1341015,000,000.00912828S27 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 51,703,382.37105551,703,382.37 1.350LAIF 63,675.78 0.00 63,675.781.50410143,575,027.1898-33-434 0.00 4,678,241.0710574,678,241.07WELLS 0.01 0.00 0.011011,359,875.094159282482 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 2,864.58 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 2,927.54 0.00 2,927.541.3841012,490,750.00912828U73 0.00 1,942,800.0010702,000,000.00 1.250USTR 2,140.88 0.00 2,140.881.2971011,942,800.00912828T67 0.00 1,998,125.0010712,000,000.00 0.875USTR 1,490.39 0.00 1,490.390.8781011,998,125.00912828Q45 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 489.20 0.00 489.202.400101240,000.0038148PJK4 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 374.54 0.00 374.541.800101245,000.00319267GC8 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 479.01 0.00 479.012.350101240,000.00795450A70 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 377.10 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 356.71 0.00 356.711.750101240,000.0058740XZL7 0.00 240,000.001088240,000.00 2.300HSBC 468.82 0.00 468.822.300101240,000.0040434YLE5 0.00 240,000.001089240,000.00 1.900OHVAL 387.29 0.00 387.291.900101240,000.00677721CN0 0.00 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 Portfolio CITY CP Run Date: 04/24/2018 - 16:46 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 January 1, 2018 - January 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 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 468.18 0.00 468.182.250101245,000.0001859BAA3 0.00 240,000.001096240,000.00 2.400AMFSB 489.21 0.00 489.212.400101240,000.0002587CFU9 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 645.83 0.00 645.831.525101498,750.0089236TDH5 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 364.14 0.00 364.141.750101245,000.00472376AC6 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 436.97 0.00 436.972.100101245,000.00080515CD9 0.00 498,840.001103500,000.00 1.250USTR 535.23 0.00 535.231.263101498,840.00912828M64 0.00 996,800.0011041,000,000.00 1.625FHLB 1,354.16 0.00 1,354.161.600101996,800.003130A66T9 0.00 992,200.0011051,000,000.00 1.700FFCB 1,416.66 0.00 1,416.661.681101992,200.003133EHWM1 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 364.15 0.00 364.151.750101245,000.0061760AEP0 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 499.40 0.00 499.402.400101245,000.00499724AB8 0.00 245,000.001111245,000.00 2.050FREECU 426.57 0.00 426.572.050101245,000.0035638BAA9 0.00 245,000.001112245,000.00 2.5003RD 33.56 0.00 33.562.5001010.0088413QBY3 0.00 1,529,867.3711141,529,867.37CALPRS 0.00 0.00 0.001011,529,867.37SYS1114 0.00 1,000,000.0011161,000,000.00 2.550FHLMC 70.83 0.00 70.831.2931010.003134GSCD5 0.00 985,800.0011171,000,000.00 1.500USTR 407.61 0.00 407.611.5091010.009128282Q2 0.00 497,700.001118500,000.00 1.850MCRSFT 231.25 0.00 231.251.6961010.00594918BV5 0.00 111,967,190.81Subtotal 111,814,055.81 1.439 128,148.090.00128,148.0998,126,834.64 0.00 Fund: 1st Empire Securities Cash Bal 0.0010600.00EMPIRE 37.59 0.00 37.590.66010259,733.73SYS1060 0.00 0.00Subtotal 0.00 0.660 37.590.0037.5959,733.73 0.00 Fund: Fiscal Agent 3,498.3010583,498.30USBANK 1.73 0.00 1.730.5832313,496.57SYS1058 0.00 3,498.30Subtotal 3,498.30 0.583 1.730.001.733,496.57 0.00 Fund: Housing Authority : WSA and LQ 1,199,178.2310611,199,178.23WSALQ 0.00 0.00 0.002411,150,132.13SYS1061 0.00 171,455.891062171,455.89LQPR 0.00 0.00 0.00241158,447.30SYS1062 0.00 Portfolio CITY CP Run Date: 04/24/2018 - 16:46 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 January 1, 2018 - January 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss 1,370,634.12Subtotal 1,370,634.12 0.000.000.001,308,579.43 0.00 Fund: SA Low/Mod Bond Fund 25,647,385.17111325,647,385.17 1.350LAIF 32,857.93 0.00 32,857.931.50924925,595,000.0025-33-005 0.00 25,647,385.17Subtotal 25,647,385.17 1.509 32,857.930.0032,857.9325,595,000.00 0.00 138,988,708.40Total 138,835,573.40 1.438 161,045.340.00161,045.34125,093,644.37 0.00 Portfolio CITY CP Run Date: 04/24/2018 - 16:46 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 February 28, 2018 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 179,708.41 179,708.4107/01/2016 179,708.41 1SYS1062 0.000 1Wells Fargo1057 7,937,217.20 7,937,217.2007/01/2016 7,937,217.20 14159282482 0.000 1Washington St Apt La Quinta1061 1,212,531.95 1,212,531.9507/01/2016 1,212,531.95 1SYS1061 0.000 9,331,157.56 19,331,157.569,331,157.566,167,743.88Subtotal and Average 1 0.000 Local Agency Invstmnt Fund-Housing 1Local Agency Inv Fund1113 25,647,385.17 25,647,385.17 1.41210/31/2017 25,647,385.17 125-33-005 1.412 25,647,385.17 125,647,385.1725,647,385.1725,647,385.17Subtotal and Average 1 1.412 Local Agency Investment Fund-City 1Local Agency Inv Fund1055 47,203,382.37 47,203,382.37 1.41247,137,365.61 198-33-434 1.412 47,203,382.37 147,137,365.6147,203,382.3748,006,953.80Subtotal and Average 1 1.412 Federal Agency Coupon Securities 498Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 983,780.00 7323133EGLC7 1.456 1,280Federal Farm Credit Bank1105 1,000,000.00 992,200.00 09/01/20211.70011/09/2017 971,200.00 1,3923133EHWM1 1.913 1,154Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,403,325.00 1,8263130A7QZ1 1.423 970Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,425,825.00 1,4613130A9UQ2 1.375 925Federal Home Loan Bank1104 1,000,000.00 996,800.00 09/11/20201.62511/09/2017 978,170.00 1,0373130A66T9 1.741 1,154Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.25004/28/2016 2,455,725.00 1,8263134G8Y37 2.115 1,489Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,938,940.00 1,8263134GBAE2 2.106 1,399Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 972,050.00 1,6373134GBXF4 2.012 1,609Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 970,570.00 1,8263134GBWG3 2.150 1,796Federal Home Loan Mtg Corp1116 1,000,000.00 1,000,000.00 01/30/20232.55001/30/2018 987,530.00 1,8263134GSCD5 2.550 697Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,975,540.00 1,0363135G0S53 1.700 17,462,350.00 1,54117,062,655.0017,500,000.0017,462,350.00Subtotal and Average 1,147 1.812 Treasury Coupon Securities 1,217U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,781,850.00 1,808912828S27 1.125 228U.S. Treasury1063 2,500,000.00 2,502,250.00 10/15/20180.87510/24/2016 2,483,300.00 721912828L81 0.829 761U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,452,650.00 1,107912828J84 1.602 654U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,462,200.00 1,000912828U73 1.513 1,340U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,910,400.00 1,679912828T67 1.903 Portfolio CITY CP Run Date: 04/18/2018 - 10:43 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 February 28, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Treasury Coupon Securities 30U.S. Treasury1071 2,000,000.00 1,998,125.00 03/31/20180.87503/27/2017 1,999,100.00 369912828Q45 0.968 259U.S. Treasury1103 500,000.00 498,840.00 11/15/20181.25011/09/2017 497,385.00 371912828M64 1.481 898U.S. Treasury1117 1,000,000.00 985,800.00 08/15/20201.50001/22/2018 979,810.00 9369128282Q2 2.071 17,901,815.00 1,18417,566,695.0018,000,000.0017,901,815.00Subtotal and Average 774 1.333 Certificate of Deposits 445First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 239,169.60 1,82631938QH72 1.751 630First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 237,511.20 853320165HX4 1.653 243First Merchants Bank1020 240,000.00 240,000.00 10/30/20181.50004/30/2014 240,127.20 1,64432082BDF3 1.501 1,432Third Federal Savings and Loan1112 245,000.00 245,000.00 01/31/20222.50001/30/2018 244,171.90 1,46288413QBY3 2.233 1,687Alliance Credit Union1095 245,000.00 245,000.00 10/13/20222.25010/13/2017 240,202.90 1,82601859BAA3 2.251 298Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 239,671.20 1,09602006LWX7 1.702 1,145Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 237,057.60 1,46102587DP85 2.252 1,642American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 235,881.60 1,82602587CFU9 2.402 1,699Barclays Bank1097 240,000.00 240,000.00 10/25/20222.30010/25/2017 235,732.80 1,82606740KLJ4 2.301 1,362Belmont Savings Bank1102 245,000.00 245,000.00 11/22/20212.10011/21/2017 240,933.00 1,462080515CD9 2.101 60Berkshire Bank1004 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,040.80 1,461084601AL7 1.351 1,456BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 236,392.80 1,82605580AGK4 2.201 1,050Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 235,562.40 1,28006610RAP4 1.804 1,194Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 238,032.00 1,46114042RGD7 2.252 832Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 242,498.55 1,827140420RX0 1.902 18Carolina Alliance1007 248,000.00 248,000.00 03/19/20181.00006/19/2015 247,962.80 1,00414376RAM9 1.000 1,089Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 234,648.00 1,82720033APG5 1.702 166CIT Bank UT1008 240,000.00 240,000.00 08/14/20181.90008/14/2013 240,297.60 1,82617284CKN3 1.901 1,231Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 234,775.20 1,46115523RBJ4 1.851 96Compass Bank1010 248,000.00 248,000.00 06/05/20181.35006/05/2015 247,873.52 1,09620451PLG9 1.351 461Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 246,712.88 1,46120786ABD6 1.501 60Cornerstone Community Bank1012 240,000.00 240,000.00 04/30/20181.35004/30/2014 239,971.20 1,461219240AZ1 1.351 60Crescent Bank and Trust1013 240,000.00 240,000.00 04/30/20181.30004/30/2014 239,952.00 1,461225645DC1 1.301 1,723CrossFirst Bank1106 245,000.00 245,000.00 11/18/20222.20011/20/2017 239,367.45 1,82422766ACB9 2.201 1,433Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 236,959.20 1,8262546722U1 2.251 691Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 236,944.80 916259744DS6 1.655 15Embassy National1015 248,000.00 248,000.00 03/16/20181.00006/17/2015 247,987.60 1,003290800AL5 1.000 1,733Enterprise Bank, NA1107 245,000.00 245,000.00 11/28/20222.15011/28/2017 238,745.15 1,82629367QCP1 2.151 425Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 239,966.40 1,826294209AQ4 1.651 827EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 244,128.72 1,82729976DXX3 1.702 Portfolio CITY CP Run Date: 04/18/2018 - 10:43 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value February 28, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 341Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 246,534.32 1,341307814DC4 1.252 1,027Freedom Credit Union1111 245,000.00 245,000.00 12/22/20202.05012/22/2017 242,268.25 1,09635638BAA9 2.052 445Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 239,172.00 1,827402194EB6 1.724 1,517Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 237,873.60 1,82638148PJK4 2.401 865First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 236,308.80 1,096319141GT8 1.752 1,596HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 236,445.60 1,82640434YLE5 2.301 803Jefferson Bank & Trust1100 245,000.00 245,000.00 05/12/20201.75011/09/2017 241,572.45 915472376AC6 1.751 1,538Kansas State Bank1101 245,000.00 245,000.00 05/17/20222.10011/17/2017 239,774.15 1,64250116CBE8 2.099 1,764Knoxville TVA Credit Union1110 245,000.00 245,000.00 12/29/20222.40012/29/2017 241,253.95 1,826499724AB8 2.401 96MB Financial Bank1027 248,000.00 248,000.00 06/05/20181.10006/05/2015 247,806.56 1,09655266CME3 1.101 55Medallion Bank1028 240,000.00 240,000.00 04/25/20181.35004/25/2014 239,980.80 1,46158403BL95 1.351 859Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 236,342.40 1,09658740XZL7 1.752 102MFR Trade & Trust1026 248,000.00 248,000.00 06/11/20181.20006/10/2015 247,754.48 1,097564759QT8 1.033 834Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 243,806.32 1,827063615AVO 1.652 627Morgan Stanley Bank1109 245,000.00 245,000.00 11/18/20191.80011/16/2017 243,108.60 73261747MA92 1.800 286Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,337.84 1,279619165GE7 1.251 69Merrick Bank1029 240,000.00 240,000.00 05/09/20181.35005/09/2014 240,038.40 1,46159012Y6Q5 1.351 627Morgan Stanley Private Bk, NA1108 245,000.00 245,000.00 11/18/20191.75011/16/2017 242,902.80 73261760AEP0 1.750 1,713Mountain America Federal CU1099 245,000.00 245,000.00 11/08/20222.30011/08/2017 240,528.75 1,82662384RAC0 2.301 1,420The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 233,913.60 1,645677721CN0 1.903 453Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 239,863.20 1,826704692AL6 1.801 1,182PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 233,241.60 1,82674267GVG9 1.501 137Regal Bank1033 240,000.00 240,000.00 07/16/20181.40005/16/2014 240,036.00 1,52275874TAH4 1.401 998Fist Bank RIchmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 240,771.30 1,251319267GC8 1.802 553Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 246,338.40 1,55376951DAL4 1.402 1,573Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 237,064.80 1,826795450A70 2.351 39South Atlantic1036 248,000.00 248,000.00 04/09/20181.00006/09/2015 247,910.72 1,03583637AAP9 1.001 460Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 246,717.84 1,46183427LAX2 1.401 782Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 236,001.60 1,096857894TC3 1.588 1,554Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 237,662.40 1,82687164XQV1 2.401 418Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 239,961.60 1,82694768NJQ8 1.801 362Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 239,311.20 1,0969497483N5 1.201 15,054,000.00 1,47614,908,882.4015,054,000.0015,054,000.00Subtotal and Average 810 1.754 Portfolio CITY CP Run Date: 04/18/2018 - 10:43 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Maturity Date Stated RateMarket Value February 28, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Corporate Notes 1,252Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 479,115.00 1,514037833CC2 1.900 365Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,978,160.00 702478160BR4 1.305 707Microsoft Corporation1118 500,000.00 497,700.00 02/06/20201.85001/22/2018 494,645.00 745594918BV5 2.081 596Toyota Motor Credit Corp1098 500,000.00 498,750.00 10/18/20191.55011/07/2017 492,950.00 71089236TDH5 1.681 3,482,700.00 8243,444,870.003,500,000.003,482,700.00Subtotal and Average 573 1.554 Money Market with Fiscal Agent 1US Bank1058 4,589,541.56 4,589,541.5607/01/2016 4,589,541.56 1SYS1058 0.000 4,589,541.56 14,589,541.564,589,541.56167,285.56Subtotal and Average 1 0.000 Managed Pool Accounts-OPEB Trust 1CalPERS CERBT Plan1114 1,529,867.37 1,529,867.3712/18/2017 1,529,867.37 1SYS1114 0.000 1,529,867.37 11,529,867.371,529,867.371,529,867.37Subtotal and Average 1 0.000 515135,420,100.78 142,355,334.03 339 1.337141,218,419.67 142,202,199.03Total and Average Portfolio CITY CP Run Date: 04/18/2018 - 10:43 PM (PRF_PM2) 7.3.0 Days to Maturity Page 5 Par Value Book Value Stated RateMarket Value February 28, 2018 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 0.00 515135,420,100.78 142,355,334.03 339 1.337 0 0 120.99 120.99 120.99 120.99 Subtotal Accrued Interest at PurchaseAverage Balance 141,218,540.66 142,202,320.02Total Cash and Investments Portfolio CITY CP Run Date: 04/18/2018 - 10:43 PM (PRF_PM2) 7.3.0 City of La Quinta Total Earnings City of La Quinta - Sorted by Fund - Fund February 1, 2018 - February 28, 2018 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 312.99 0.00 312.991.700101240,000.0002006LWX7 0.00 248,000.001002248,000.00 1.650MIDWES 313.90 0.00 313.901.650101248,000.00063615AVO 0.00 240,000.001004240,000.00 1.350BERKS 248.54 0.00 248.541.350101240,000.00084601AL7 0.00 245,000.001006245,000.00 1.900CAPONE 357.10 0.00 357.101.900101245,000.00140420RX0 0.00 248,000.001007248,000.00 1.000CAROL 190.25 0.00 190.251.000101248,000.0014376RAM9 0.00 240,000.001008240,000.00 1.900CITI 349.81 0.00 349.811.900101240,000.0017284CKN3 0.00 240,000.001009240,000.00 1.700CCBA 312.98 0.00 312.981.700101240,000.0020033APG5 0.00 248,000.001010248,000.00 1.350COMP 256.83 0.00 256.831.350101248,000.0020451PLG9 0.00 248,000.001011248,000.00 1.500CONNEC 285.37 0.00 285.371.500101248,000.0020786ABD6 0.00 240,000.001012240,000.00 1.350CORNER 248.54 0.00 248.541.350101240,000.00219240AZ1 0.00 240,000.001013240,000.00 1.300CRESC 239.34 0.00 239.341.300101240,000.00225645DC1 0.00 248,000.001015248,000.00 1.000EMBNAT 190.25 0.00 190.251.000101248,000.00290800AL5 0.00 240,000.001016240,000.00 1.650EPHRAT 303.78 0.00 303.781.650101240,000.00294209AQ4 0.00 248,000.001017248,000.00 1.700EVRBA 323.41 0.00 323.411.700101248,000.0029976DXX3 0.00 248,000.001018248,000.00 1.250FARMER 237.81 0.00 237.811.250101248,000.00307814DC4 0.00 240,000.001019240,000.00 1.7501STBUS 322.19 0.00 322.191.750101240,000.0031938QH72 0.00 240,000.001020240,000.00 1.5001STMER 276.16 0.00 276.161.500101240,000.0032082BDF3 0.00 240,000.001024240,000.00 1.750GCB 322.20 0.00 322.201.750101240,000.00402194EB6 0.00 248,000.001026248,000.00 1.200MFR 228.30 0.00 228.301.200101248,000.00564759QT8 0.00 248,000.001027248,000.00 1.100MBFIN 209.27 0.00 209.271.100101248,000.0055266CME3 0.00 240,000.001028240,000.00 1.350MEDBA 248.55 0.00 248.551.350101240,000.0058403BL95 0.00 240,000.001029240,000.00 1.350MRRCK 248.54 0.00 248.541.350101240,000.0059012Y6Q5 0.00 248,000.001030248,000.00 1.250MORTN 237.81 0.00 237.811.250101248,000.00619165GE7 0.00 240,000.001031240,000.00 1.800PEAPAC 331.40 0.00 331.401.800101240,000.00704692AL6 0.00 240,000.001032240,000.00 1.500PRVTBA 276.16 0.00 276.161.500101240,000.0074267GVG9 0.00 240,000.001033240,000.00 1.400REGAL 257.75 0.00 257.751.400101240,000.0075874TAH4 0.00 248,000.001034248,000.00 1.400RVRW 266.35 0.00 266.351.400101248,000.0076951DAL4 0.00 248,000.001035248,000.00 1.400SOLOM 266.34 0.00 266.341.400101248,000.0083427LAX2 0.00 248,000.001036248,000.00 1.000SOATL 190.24 0.00 190.241.000101248,000.0083637AAP9 0.00 240,000.001042240,000.00 1.800WEB 331.40 0.00 331.401.800101240,000.0094768NJQ8 0.00 Portfolio CITY CP Run Date: 04/24/2018 - 16:51 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 February 1, 2018 - February 28, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001043240,000.00 1.200WELLS 220.93 0.00 220.931.200101240,000.009497483N5 0.00 5,000,000.0010455,000,000.00 1.125USTR 4,350.82 0.00 4,350.821.1341015,000,000.00912828S27 0.00 2,491,250.0010532,500,000.00 1.350FHLB 2,812.50 0.00 2,812.501.4721012,491,250.003130A7QZ1 0.00 2,500,000.0010542,500,000.00 1.250FHLMC 2,604.16 0.00 2,604.161.3581012,500,000.003134G8Y37 0.00 47,203,382.37105547,203,382.37 1.412LAIF 55,385.69 0.00 55,385.691.50410151,703,382.3798-33-434 0.00 7,937,217.2010577,937,217.20WELLS 0.01 0.00 0.011014,678,241.074159282482 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 1,682.69 0.00 1,682.690.8771012,502,250.00912828L81 0.00 2,500,000.0010642,500,000.00 1.375FHLB 2,864.58 0.00 2,864.581.4941012,500,000.003130A9UQ2 0.00 240,000.001066240,000.00 2.250DISCOV 414.25 0.00 414.252.250101240,000.002546722U1 0.00 240,000.001067240,000.00 2.200BMW 405.04 0.00 405.042.200101240,000.0005580AGK4 0.00 2,483,250.0010682,500,000.00 1.375USTR 2,644.24 0.00 2,644.241.3881012,483,250.00912828J84 0.00 2,490,750.0010692,500,000.00 1.375USTR 2,644.23 0.00 2,644.231.3841012,490,750.00912828U73 0.00 1,942,800.0010702,000,000.00 1.250USTR 1,933.70 0.00 1,933.701.2971011,942,800.00912828T67 0.00 1,998,125.0010712,000,000.00 0.875USTR 1,346.15 0.00 1,346.150.8781011,998,125.00912828Q45 0.00 2,000,000.0010722,000,000.00 1.700FNMA 2,833.33 0.00 2,833.331.8471012,000,000.003135G0S53 0.00 1,990,000.0010732,000,000.00 2.000FHLMC 3,333.33 0.00 3,333.332.1841011,990,000.003134GBAE2 0.00 1,993,200.0010752,000,000.00 1.125J&J 1,875.00 0.00 1,875.001.2261011,993,200.00478160BR4 0.00 240,000.001076240,000.00 1.600STRNS 294.57 0.00 294.571.600101240,000.00857894TC3 0.00 240,000.001077240,000.00 2.250AMEX 414.25 0.00 414.252.250101240,000.0002587DP85 0.00 240,000.001078240,000.00 2.400GLDMAN 441.86 0.00 441.862.400101240,000.0038148PJK4 0.00 493,050.001079500,000.00 1.550APPL 645.83 0.00 645.831.708101493,050.00037833CC2 0.00 240,000.001080240,000.00 2.400SYNCHR 441.86 0.00 441.862.400101240,000.0087164XQV1 0.00 245,000.001081245,000.00 1.800RICHMN 338.30 0.00 338.301.800101245,000.00319267GC8 0.00 240,000.001082240,000.00 2.250CAP1NA 414.25 0.00 414.252.250101240,000.0014042RGD7 0.00 240,000.001083240,000.00 2.350SALMAE 432.66 0.00 432.662.350101240,000.00795450A70 0.00 999,500.0010841,000,000.00 2.000FHLMC 1,666.67 0.00 1,666.672.174101999,500.003134GBXF4 0.00 240,000.001085240,000.00 1.850CNTRL 340.60 0.00 340.601.850101240,000.0015523RBJ4 0.00 240,000.001086240,000.00 1.800BNKRS 331.40 0.00 331.401.800101240,000.0006610RAP4 0.00 240,000.001087240,000.00 1.750MERCTL 322.19 0.00 322.191.750101240,000.0058740XZL7 0.00 240,000.001088240,000.00 2.300HSBC 423.46 0.00 423.462.300101240,000.0040434YLE5 0.00 240,000.001089240,000.00 1.900OHVAL 349.81 0.00 349.811.900101240,000.00677721CN0 0.00 1,000,000.0010901,000,000.00 2.150FHLMC 1,791.67 0.00 1,791.672.3361011,000,000.003134GBWG3 0.00 240,000.001091240,000.00 1.6501STFRM 303.78 0.00 303.781.650101240,000.00320165HX4 0.00 992,600.0010921,000,000.00 1.080FFCB 900.00 0.00 900.001.182101992,600.003133EGLC7 0.00 240,000.001093240,000.00 1.650DOUGLS 303.78 0.00 303.781.650101240,000.00259744DS6 0.00 240,000.001094240,000.00 1.750HIGHLD 322.19 0.00 322.191.750101240,000.00319141GT8 0.00 Portfolio CITY CP Run Date: 04/24/2018 - 16:51 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 February 1, 2018 - February 28, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 245,000.001095245,000.00 2.250ALLIAN 422.88 0.00 422.882.250101245,000.0001859BAA3 0.00 240,000.001096240,000.00 2.400AMFSB 441.86 0.00 441.862.400101240,000.0002587CFU9 0.00 240,000.001097240,000.00 2.300BARCLY 423.45 0.00 423.452.300101240,000.0006740KLJ4 0.00 498,750.001098500,000.00 1.550TOYOTA 645.83 0.00 645.831.688101498,750.0089236TDH5 0.00 245,000.001099245,000.00 2.300MTNAMR 432.28 0.00 432.282.300101245,000.0062384RAC0 0.00 245,000.001100245,000.00 1.750JFFRSN 328.91 0.00 328.911.750101245,000.00472376AC6 0.00 245,000.001101245,000.00 2.100KANSAS 394.69 0.00 394.692.100101245,000.0050116CBE8 0.00 245,000.001102245,000.00 2.100BELMNT 394.68 0.00 394.682.100101245,000.00080515CD9 0.00 498,840.001103500,000.00 1.250USTR 483.42 0.00 483.421.263101498,840.00912828M64 0.00 996,800.0011041,000,000.00 1.625FHLB 1,354.17 0.00 1,354.171.771101996,800.003130A66T9 0.00 992,200.0011051,000,000.00 1.700FFCB 1,416.67 0.00 1,416.671.861101992,200.003133EHWM1 0.00 245,000.001106245,000.00 2.200CRS1ST 413.48 0.00 413.482.200101245,000.0022766ACB9 0.00 245,000.001107245,000.00 2.150ENTRPR 404.08 0.00 404.082.150101245,000.0029367QCP1 0.00 245,000.001108245,000.00 1.750MSPRIV 328.90 0.00 328.901.750101245,000.0061760AEP0 0.00 245,000.001109245,000.00 1.800MORGST 338.30 0.00 338.301.800101245,000.0061747MA92 0.00 245,000.001110245,000.00 2.400KNOX 451.06 0.00 451.062.400101245,000.00499724AB8 0.00 245,000.001111245,000.00 2.050FREECU 385.29 0.00 385.292.050101245,000.0035638BAA9 0.00 245,000.001112245,000.00 2.5003RD 469.86 0.00 469.862.500101245,000.0088413QBY3 0.00 1,529,867.3711141,529,867.37CALPRS 0.00 0.00 0.001011,529,867.37SYS1114 0.00 1,000,000.0011161,000,000.00 2.550FHLMC 2,125.00 0.00 2,125.002.7701011,000,000.003134GSCD5 0.00 985,800.0011171,000,000.00 1.500USTR 1,150.76 0.00 1,150.761.522101985,800.009128282Q2 0.00 497,700.001118500,000.00 1.850MCRSFT 770.83 0.00 770.832.019101497,700.00594918BV5 0.00 110,726,166.94Subtotal 110,573,031.94 1.440 119,589.740.00119,589.74111,814,055.81 0.00 Fund: 1st Empire Securities Cash Bal 0.0010600.00EMPIRE 15.67 0.00 15.67***.***102 0.00SYS1060 0.00 0.00Subtotal 0.00 ***.***15.670.0015.670.00 0.00 Fund: Fiscal Agent 4,589,541.5610584,589,541.56USBANK 2.05 0.00 2.050.0162313,498.30SYS1058 0.00 4,589,541.56Subtotal 4,589,541.56 0.016 2.050.002.053,498.30 0.00 Fund: Housing Authority : WSA and LQ 1,212,531.9510611,212,531.95WSALQ 0.00 0.00 0.002411,199,178.23SYS1061 0.00 179,708.411062179,708.41LQPR 0.00 0.00 0.00241171,455.89SYS1062 0.00 1,392,240.36Subtotal 1,392,240.36 0.000.000.001,370,634.12 0.00 Portfolio CITY CP Run Date: 04/24/2018 - 16:51 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 February 1, 2018 - February 28, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: SA Low/Mod Bond Fund 25,647,385.17111325,647,385.17 1.412LAIF 29,697.69 0.00 29,697.691.50924925,647,385.1725-33-005 0.00 25,647,385.17Subtotal 25,647,385.17 1.509 29,697.690.0029,697.6925,647,385.17 0.00 142,355,334.03Total 142,202,199.03 1.437 149,305.150.00149,305.15138,835,573.40 0.00 Portfolio CITY CP Run Date: 04/24/2018 - 16:51 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 March 31, 2018 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 65,528.24 65,528.2407/01/2016 65,528.24 1SYS1060 0.000 1La Quinta Palms Realty1062 195,448.93 195,448.9307/01/2016 195,448.93 1SYS1062 0.000 1Wells Fargo1057 2,429,776.47 2,429,776.4707/01/2016 2,429,776.47 14159282482 0.000 1Washington St Apt La Quinta1061 1,073,290.98 1,073,290.9807/01/2016 1,073,290.98 1SYS1061 0.000 3,765,744.62 13,765,744.623,765,744.629,173,463.76Subtotal and Average 1 0.000 Local Agency Invstmnt Fund-Housing 1Local Agency Inv Fund1113 23,647,385.17 23,647,385.17 1.52410/31/2017 23,647,385.17 125-33-005 1.524 23,647,385.17 123,647,385.1723,647,385.1723,969,965.82Subtotal and Average 1 1.524 Local Agency Investment Fund-City 1Local Agency Inv Fund1055 49,203,382.37 49,203,382.37 1.52449,137,365.61 198-33-434 1.524 49,203,382.37 149,137,365.6149,203,382.3747,461,446.89Subtotal and Average 1 1.524 Federal Agency Coupon Securities 467Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 984,920.00 7323133EGLC7 1.456 1,249Federal Farm Credit Bank1105 1,000,000.00 992,200.00 09/01/20211.70011/09/2017 970,930.00 1,3923133EHWM1 1.913 1,123Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,408,950.00 1,8263130A7QZ1 1.423 939Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,429,425.00 1,4613130A9UQ2 1.375 894Federal Home Loan Bank1104 1,000,000.00 996,800.00 09/11/20201.62511/09/2017 981,860.00 1,0373130A66T9 1.741 1,123Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.25004/28/2016 2,460,175.00 1,8263134G8Y37 2.115 1,458Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,946,960.00 1,8263134GBAE2 2.106 1,368Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 975,820.00 1,6373134GBXF4 2.012 1,578Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 974,790.00 1,8263134GBWG3 2.150 1,765Federal Home Loan Mtg Corp1116 1,000,000.00 1,000,000.00 01/30/20232.55001/30/2018 987,930.00 1,8263134GSCD5 2.550 666Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,976,180.00 1,0363135G0S53 1.700 17,462,350.00 1,54117,097,940.0017,500,000.0017,462,350.00Subtotal and Average 1,116 1.812 Treasury Coupon Securities 1,186U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,796,500.00 1,808912828S27 1.125 197U.S. Treasury1063 2,500,000.00 2,502,250.00 10/15/20180.87510/24/2016 2,485,250.00 721912828L81 0.829 730U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,454,875.00 1,107912828J84 1.602 623U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,462,700.00 1,000912828U73 1.513 1,309U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,916,800.00 1,679912828T67 1.903 Portfolio CITY CP Run Date: 04/30/2018 - 18:02 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 March 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Treasury Coupon Securities 228U.S. Treasury1103 500,000.00 498,840.00 11/15/20181.25011/09/2017 497,635.00 371912828M64 1.481 867U.S. Treasury1117 1,000,000.00 985,800.00 08/15/20201.50001/22/2018 980,820.00 9369128282Q2 2.071 15,903,690.00 1,28615,594,580.0016,000,000.0017,837,359.35Subtotal and Average 836 1.379 Certificate of Deposits 414First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 238,953.60 1,82631938QH72 1.751 599First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 237,187.20 853320165HX4 1.653 212First Merchants Bank1020 240,000.00 240,000.00 10/30/20181.50004/30/2014 239,956.80 1,64432082BDF3 1.501 1,401Third Federal Savings and Loan1112 245,000.00 245,000.00 01/31/20222.50001/30/2018 243,059.60 1,46288413QBY3 2.233 1,656Alliance Credit Union1095 245,000.00 245,000.00 10/13/20222.25010/13/2017 239,279.25 1,82601859BAA3 2.251 267Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 239,512.80 1,09602006LWX7 1.702 1,114Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 236,071.20 1,46102587DP85 2.252 1,611American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 234,739.20 1,82602587CFU9 2.402 1,816Aneca Federal Credit Union1119 245,000.00 245,000.00 03/22/20232.80003/22/2018 244,336.05 1,826034577AH9 2.802 1,668Barclays Bank1097 240,000.00 240,000.00 10/25/20222.30010/25/2017 234,823.20 1,82606740KLJ4 2.301 1,331Belmont Savings Bank1102 245,000.00 245,000.00 11/22/20212.10011/21/2017 239,872.15 1,462080515CD9 2.101 29Berkshire Bank1004 240,000.00 240,000.00 04/30/20181.35004/30/2014 240,019.20 1,461084601AL7 1.351 1,425BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 235,370.40 1,82605580AGK4 2.201 1,019Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 234,643.20 1,28006610RAP4 1.804 1,163Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 236,952.00 1,46114042RGD7 2.252 801Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 241,792.95 1,827140420RX0 1.902 1,058Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 233,700.00 1,82720033APG5 1.702 135CIT Bank UT1008 240,000.00 240,000.00 08/14/20181.90008/14/2013 240,170.40 1,82617284CKN3 1.901 1,200Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 233,764.80 1,46115523RBJ4 1.851 65Compass Bank1010 248,000.00 248,000.00 06/05/20181.35006/05/2015 247,905.76 1,09620451PLG9 1.351 430Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 246,494.64 1,46120786ABD6 1.501 29Cornerstone Community Bank1012 240,000.00 240,000.00 04/30/20181.35004/30/2014 239,983.20 1,461219240AZ1 1.351 29Crescent Bank and Trust1013 240,000.00 240,000.00 04/30/20181.30004/30/2014 239,973.60 1,461225645DC1 1.301 1,692CrossFirst Bank1106 245,000.00 245,000.00 11/18/20222.20011/20/2017 238,460.95 1,82422766ACB9 2.201 1,402Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 235,920.00 1,8262546722U1 2.251 660Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 236,575.20 916259744DS6 1.655 1,702Enterprise Bank, NA1107 245,000.00 245,000.00 11/28/20222.15011/28/2017 237,855.80 1,82629367QCP1 2.151 394Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 239,712.00 1,826294209AQ4 1.651 796EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 243,471.52 1,82729976DXX3 1.702 310Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 246,457.44 1,341307814DC4 1.252 996Freedom Credit Union1111 245,000.00 245,000.00 12/22/20202.05012/22/2017 241,315.20 1,09635638BAA9 2.052 Portfolio CITY CP Run Date: 04/30/2018 - 18:02 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value March 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 414Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 238,951.20 1,827402194EB6 1.724 1,486Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 236,868.00 1,82638148PJK4 2.401 834First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 235,617.60 1,096319141GT8 1.752 1,565HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 235,488.00 1,82640434YLE5 2.301 772Jefferson Bank & Trust1100 245,000.00 245,000.00 05/12/20201.75011/09/2017 240,937.90 915472376AC6 1.751 1,507Kansas State Bank1101 245,000.00 245,000.00 05/17/20222.10011/17/2017 238,803.95 1,64250116CBE8 2.099 1,733Knoxville TVA Credit Union1110 245,000.00 245,000.00 12/29/20222.40012/29/2017 240,335.20 1,826499724AB8 2.401 65MB Financial Bank1027 248,000.00 248,000.00 06/05/20181.10006/05/2015 247,858.64 1,09655266CME3 1.101 24Medallion Bank1028 240,000.00 240,000.00 04/25/20181.35004/25/2014 239,985.60 1,46158403BL95 1.351 828Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 235,658.40 1,09658740XZL7 1.752 71MFR Trade & Trust1026 248,000.00 248,000.00 06/11/20181.20006/10/2015 247,811.52 1,097564759QT8 1.033 803Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 243,141.68 1,827063615AVO 1.652 596Morgan Stanley Bank1109 245,000.00 245,000.00 11/18/20191.80011/16/2017 242,755.80 73261747MA92 1.800 255Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,206.40 1,279619165GE7 1.251 38Merrick Bank1029 240,000.00 240,000.00 05/09/20181.35005/09/2014 240,021.60 1,46159012Y6Q5 1.351 596Morgan Stanley Private Bk, NA1108 245,000.00 245,000.00 11/18/20191.75011/16/2017 242,559.80 73261760AEP0 1.750 1,682Mountain America Federal CU1099 245,000.00 245,000.00 11/08/20222.30011/08/2017 239,597.75 1,82662384RAC0 2.301 1,389The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 232,929.60 1,645677721CN0 1.903 422Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 239,592.00 1,826704692AL6 1.801 1,151PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 232,288.80 1,82674267GVG9 1.501 106Regal Bank1033 240,000.00 240,000.00 07/16/20181.40005/16/2014 239,976.00 1,52275874TAH4 1.401 967First Bank Richmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 239,899.10 1,251319267GC8 1.802 522Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 246,045.76 1,55376951DAL4 1.402 1,542Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 236,088.00 1,826795450A70 2.351 8South Atlantic1036 248,000.00 248,000.00 04/09/20181.00006/09/2015 247,967.76 1,03583637AAP9 1.001 429Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 246,502.08 1,46183427LAX2 1.401 751Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 235,425.60 1,096857894TC3 1.588 1,523Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 236,668.80 1,82687164XQV1 2.401 1,080Unity Bank1120 245,000.00 245,000.00 03/16/20212.55003/16/2018 244,314.00 1,09691330ABN6 2.553 387Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 239,714.40 1,82694768NJQ8 1.801 331Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 239,176.80 1,0969497483N5 1.201 15,048,000.00 1,49114,868,517.0515,048,000.0015,027,483.87Subtotal and Average 827 1.809 Corporate Notes 1,221Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 479,165.00 1,514037833CC2 1.900 334Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,978,340.00 702478160BR4 1.305 Portfolio CITY CP Run Date: 04/30/2018 - 18:02 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Maturity Date Stated RateMarket Value March 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Corporate Notes 676Microsoft Corporation1118 500,000.00 497,700.00 02/06/20201.85001/22/2018 495,015.00 745594918BV5 2.081 565Toyota Motor Credit Corp1098 500,000.00 498,750.00 10/18/20191.55011/07/2017 490,995.00 71089236TDH5 1.681 3,482,700.00 8243,443,515.003,500,000.003,482,700.00Subtotal and Average 542 1.554 Money Market with Fiscal Agent 1US Bank1058 21,050.62 21,050.6207/01/2016 21,050.62 1SYS1058 0.000 21,050.62 121,050.6221,050.624,442,170.88Subtotal and Average 1 0.000 Managed Pool Accounts-OPEB Trust 1CalPERS CERBT Plan1114 1,507,063.60 1,507,063.6012/18/2017 1,507,063.60 1SYS1114 0.000 1,507,063.60 11,507,063.601,507,063.601,529,131.76Subtotal and Average 1 0.000 559140,386,072.34 130,192,626.38 363 1.517129,083,161.67 130,041,366.38Total and Average Portfolio CITY CP Run Date: 04/30/2018 - 18:02 PM (PRF_PM2) 7.3.0 Days to Maturity Page 5 Par Value Book Value Stated RateMarket Value March 31, 2018 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 0.00 559140,386,072.34 130,192,626.38 363 1.517 0 0 120.99 120.99 120.99 120.99 Subtotal Accrued Interest at PurchaseAverage Balance 129,083,282.66 130,041,487.37Total Cash and Investments Portfolio CITY CP Run Date: 04/30/2018 - 18:02 PM (PRF_PM2) 7.3.0 Page 1 Par Value Mat/Sale Settlement Date March 31, 2018 Portfolio Details - Pending Redemptions Issuer Portfolio Management City of La Quinta Security #Investment # Purchase Settlement Date Treasury Coupon Securities U.S. Treasury1071 03/31/201803/27/2017912828Q45 2,000,000.00 Subtotal 2,000,000.00 Total Pending Redemptions 2,000,000.00 Portfolio CITY CP Run Date: 04/30/2018 - 18:02 PM (PRF_PM7) 7.3.0 Report Ver. 7.3.6.1 City of La Quinta Total Earnings City of La Quinta - Sorted by Fund - Fund March 1, 2018 - March 31, 2018 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 395.35 0.00 395.351.900101245,000.00140420RX0 0.00 0.0010070.00 1.000CAROL 122.30 0.00 122.301.000101248,000.0014376RAM9 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 346.53 0.00 346.531.700101240,000.0020033APG5 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 0.0010150.00 1.000EMBNAT 101.91 0.00 101.911.000101248,000.00290800AL5 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 358.08 0.00 358.081.700101248,000.0029976DXX3 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 356.71 0.00 356.711.750101240,000.0031938QH72 0.00 240,000.001020240,000.00 1.5001STMER 305.76 0.00 305.761.500101240,000.0032082BDF3 0.00 240,000.001024240,000.00 1.750GCB 356.71 0.00 356.711.750101240,000.00402194EB6 0.00 248,000.001026248,000.00 1.200MFR 252.75 0.00 252.751.200101248,000.00564759QT8 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 0.00 248,000.001036248,000.00 1.000SOATL 210.63 0.00 210.631.000101248,000.0083637AAP9 0.00 240,000.001042240,000.00 1.800WEB 366.90 0.00 366.901.800101240,000.0094768NJQ8 0.00 Portfolio CITY CP Run Date: 05/03/2018 - 10:58 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 March 1, 2018 - March 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001043240,000.00 1.200WELLS 244.60 0.00 244.601.200101240,000.009497483N5 0.00 5,000,000.0010455,000,000.00 1.125USTR 4,816.99 0.00 4,816.991.1341015,000,000.00912828S27 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 49,203,382.37105549,203,382.37 1.524LAIF 60,623.08 0.00 60,623.081.50410147,203,382.3798-33-434 0.00 2,429,776.4710572,429,776.47WELLS 0.01 0.00 0.011017,937,217.204159282482 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 2,927.02 0.00 2,927.021.3881012,483,250.00912828J84 0.00 2,490,750.0010692,500,000.00 1.375USTR 2,927.54 0.00 2,927.541.3841012,490,750.00912828U73 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 0.0010710.00 0.875USTR 1,442.31 0.00 3,317.310.8781011,998,125.00912828Q45 1,875.00 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 479.01 0.00 479.012.350101240,000.00795450A70 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 377.09 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 356.72 0.00 356.721.750101240,000.0058740XZL7 0.00 240,000.001088240,000.00 2.300HSBC 468.82 0.00 468.822.300101240,000.0040434YLE5 0.00 240,000.001089240,000.00 1.900OHVAL 387.29 0.00 387.291.900101240,000.00677721CN0 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 0.00 992,600.0010921,000,000.00 1.080FFCB 900.00 0.00 900.001.068101992,600.003133EGLC7 0.00 240,000.001093240,000.00 1.650DOUGLS 336.32 0.00 336.321.650101240,000.00259744DS6 0.00 240,000.001094240,000.00 1.750HIGHLD 356.71 0.00 356.711.750101240,000.00319141GT8 0.00 Portfolio CITY CP Run Date: 05/03/2018 - 10:58 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 March 1, 2018 - March 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 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 489.21 0.00 489.212.400101240,000.0002587CFU9 0.00 240,000.001097240,000.00 2.300BARCLY 468.83 0.00 468.832.300101240,000.0006740KLJ4 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 478.58 0.00 478.582.300101245,000.0062384RAC0 0.00 245,000.001100245,000.00 1.750JFFRSN 364.14 0.00 364.141.750101245,000.00472376AC6 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 499.40 0.00 499.402.400101245,000.00499724AB8 0.00 245,000.001111245,000.00 2.050FREECU 426.57 0.00 426.572.050101245,000.0035638BAA9 0.00 245,000.001112245,000.00 2.5003RD 520.21 0.00 520.212.500101245,000.0088413QBY3 0.00 1,507,063.6011141,507,063.60CALPRS 0.00 0.00 0.001011,529,867.37SYS1114 0.00 1,000,000.0011161,000,000.00 2.550FHLMC 2,125.00 0.00 2,125.002.5021011,000,000.003134GSCD5 0.00 985,800.0011171,000,000.00 1.500USTR 1,284.53 0.00 1,284.531.534101985,800.009128282Q2 0.00 497,700.001118500,000.00 1.850MCRSFT 770.83 0.00 770.831.824101497,700.00594918BV5 0.00 245,000.001119245,000.00 2.800ANECA 187.95 0.00 187.952.8001010.00034577AH9 0.00 245,000.001120245,000.00 2.550UNITY 273.86 0.00 273.862.5501010.0091330ABN6 0.00 105,189,922.44Subtotal 105,038,662.44 1.393 130,846.530.00128,971.53110,573,031.94 1,875.00 Fund: 1st Empire Securities Cash Bal 65,528.24106065,528.24EMPIRE 12.18 0.00 12.180.5041020.00SYS1060 0.00 65,528.24Subtotal 65,528.24 0.504 12.180.0012.180.00 0.00 Fund: Fiscal Agent 21,050.62105821,050.62USBANK 1,170.72 0.00 1,170.720.3102314,589,541.56SYS1058 0.00 21,050.62Subtotal 21,050.62 0.310 1,170.720.001,170.724,589,541.56 0.00 Fund: Housing Authority : WSA and LQ 1,073,290.9810611,073,290.98WSALQ 0.00 0.00 0.002411,212,531.95SYS1061 0.00 195,448.931062195,448.93LQPR 0.00 0.00 0.00241179,708.41SYS1062 0.00 Portfolio CITY CP Run Date: 05/03/2018 - 10:58 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 March 1, 2018 - March 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss 1,268,739.91Subtotal 1,268,739.91 0.000.000.001,392,240.36 0.00 Fund: SA Low/Mod Bond Fund 23,647,385.17111323,647,385.17 1.524LAIF 30,729.16 0.00 30,729.161.50924925,647,385.1725-33-005 0.00 23,647,385.17Subtotal 23,647,385.17 1.509 30,729.160.0030,729.1625,647,385.17 0.00 130,192,626.38Total 130,041,366.38 1.365 162,758.590.00160,883.59142,202,199.03 1,875.00 Portfolio CITY CP Run Date: 05/03/2018 - 10:58 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 Amounts due during January 1, 2018 - March 31, 2018 Rate at MaturityPar Value Sec. TypeFund Maturity Date Maturity ProceedsInterest Income Net CUSIP Investment #Issuer Purchase Date Book Value at Maturity 248,000.00 0.900 248,189.57189.5706/12/2015INDEP102545383UQY4MC110101/12/2018 189.57248,000.00 240,000.00 1.250 240,756.16756.1604/29/20143RD103888413QAN8MC110101/29/2018 756.16240,000.00 248,000.00 1.000 248,183.45183.4506/17/2015EMBNAT1015290800AL5MC110103/16/2018 183.45248,000.00 248,000.00 1.000 248,190.25190.2506/19/2015CAROL100714376RAM9MC110103/19/2018 190.25248,000.00 2,000,000.00 0.875 2,008,750.008,750.0003/27/2017USTR1071912828Q45TRC10103/31/2018 10,625.001,998,125.00 2,994,069.43Total Maturities 2,984,000.00 10,069.432,982,125.00 11,944.43 Portfolio CITY CP Run Date: 04/24/2018 - 16:39 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 January 1, 2018 - March 31, 2018 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 500,000.00 1.850 02/06/2020 497,700.00497,700.00 Received01/22/2018 2.08102/06 - 08/06MCRSFT1118594918BV5MC2101 1,000,000.00 1.500 08/15/2020 985,800.00985,800.00 Received01/22/2018 2.07102/15 - 08/15USTR11179128282Q2TRC101 245,000.00 2.500 01/31/2022 245,000.00245,000.0001/30/2018 2.23306/30 - 12/313RD111288413QBY3MC1101 1,000,000.00 2.550 01/30/2023 1,000,000.001,000,000.0001/30/2018 2.55007/30 - 01/30FHLMC11163134GSCD5FAC101 245,000.00 2.550 03/16/2021 245,000.00245,000.0003/16/2018 2.55304/16 - MonthlyUNITY112091330ABN6MC1101 245,000.00 2.800 03/22/2023 245,000.00245,000.0003/22/2018 2.80209/22 - 03/22ANECA1119034577AH9MC1101 Subtotal 3,218,500.003,218,500.00 0.003,235,000.00 3,218,500.00Total Purchases 3,235,000.00 0.00 3,218,500.00 Received = Accrued Interest at Purchase was received by report ending date. Portfolio CITY CP Run Date: 04/24/2018 - 16:04 PU (PRF_PU) 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=2018 Commercial Paper Rates https://www.federalreserve.gov/releases/cp/rates.htm City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: May 9, 2018 STAFF REPORT AGENDA TITLE: DISCUSS FISCAL YEAR 2018/19 PRELIMINARY PROPOSED BUDGET RECOMMENDATION As this is a study session item, no action is recommended. EXECUTIVE SUMMARY •This first budget study session with the Financial Advisory Commission focuses on the General Fund and Internal Service Funds. A second budget study session on May 15, 2018 with City Council will cover Special Revenue Funds, Capital Funds, and Enterprise Funds of the City. •All departments evaluated budget needs based on the City’s priorities when preparing their 18/19 budgets. •Revenues (inclusive of Measure G) are approximately 2% higher when compared to the current 2017/18 budget. •The most significant increase is $1,234,900 (8%) for police contract costs and $431,000 for parks maintenance. •Without Measure G funding, expenditures are expected to exceed revenues by $6,765,713. Additional budgetary proposals total $784,000. Final budget adoption is scheduled for June 19. FISCAL IMPACT The preliminary General Fund budget projects a deficit of $6,765,713 with projected General Fund revenues of $43,709,400 (excluding Measure G sales tax) and proposed operational and capital expenditures of $50,475,113. These numbers do not include Measure G revenue which is projected to bring in an additional $8.4 million in 18/19. STUDY SESSION ITEM NO. 1 Date 2018/19 BUDGET SCHEDULE April 11 Financial Advisory Commission preliminary Measure G General Fund budget overview April 17 City Council - first Capital Improvement budget study session May 1 City Council - first budget study session focused on the General Fund and Internal Service Funds May 9 Financial Advisory Commission update on the General Fund and Capital Improvement Budget May 15 City Council - second budget study session focused on all special funds and provides an update on the General Fund if needed. A second CIP budget session may also be included. June 5 City Council - third budget study session overall update on all funds and final direction on unfunded requests June 13 Financial Advisory Commission - final review of the General Fund and Capital Improvement Budget June 19 City Council - Adopt Budget BACKGROUND/ANALYSIS The Budget Document The goal of the May 9 study session is to provide an overview and then allow time to meet with Commissioners and other interested parties to address details that may not be easily conveyed in a study session format. Each department section contains extensive notes to explain changes from 17/18 to 18/19, and the budget format is like the prior fiscal year. Staff will also provide a verbal update from the budget study session on May 1 with City Council. Budget Timeline The budget is a puzzle put together to deliver city services to residents and visitors alike. Community input is greatly appreciated and necessary to ensure a vibrant and inclusive budget. It is our goal to use citizen input and feedback to develop the annual budget. The Financial Advisory Commission provides oversight of Measure G funds. The following budget schedule is provided to encourage citizen participation in public meetings. Attachment 1 provides a narrative of General Fund revenue and expenses, Internal Service Funds, capital improvement projects funded with the General Fund, Redevelopment Agency loan repayment to the City, reserves, and unfunded requests for consideration. Line item details for these revenues and expenses are located in Exhibit A of the Attachment. ALTERNATIVES The Commission may wish to request further information regarding specific items. Prepared by: Karla Campos, Finance Director Attachment: 1.Fiscal Year 2018/19 Proposed Budget Overview 1 | Page The proposed budget assumes continued economic stabilization and provides funding to maintain high service levels while ensuring a sound financial structure. This first budget overview provides financial information for the General Fund and four Internal Service Funds (ISFs); 18/19 budget details for Special Revenue, Capital, and Enterprise Funds will be presented on May 15. All Funds service a specific purpose or governmental accounting requirement. The General Fund funds public safety, daily operations, and supports capital improvements. In developing their budget proposals, departments were directed use the 17/18 budget as a base and formulate goals, determine upcoming projects, incorporate regulatory requirements, and identify process improvements while reducing costs whenever possible. In addition, departments identified possible trade-offs to balance resources between service and workload estimates. Overall staff endeavored to produce a preliminary budget without the use of Measure G funds, however, rising costs of public safety and needed capital infrastructure surpassed available resources by nearly $7 million. Proposed General Fund expenditures (including transfers-out from the General Fund to support operations primarily funded by restricted revenues and capital projects) total $50,475,113 and projected revenues total $52,164,400. Not including Measure G sales tax ($8,455,000), operating revenue equals $43,709,400, which produces a deficit of $6,765,713. Staff is proposing to use Measure G funds and Capital Project Savings to reduce this deficit. In 17/18, $100,000 of Measure G funds were used to fund police services; however, expenses increased by $1,046,700 from 16/17 to 17/18. The use of Measure G funds was largely mitigated by using $849,600 of prior year savings from Internal Service Funds, which are primarily funded from the General Fund. This one-time funding alternative allowed for a conservative investment of the new sales tax revenue. In addition, staff has identified $784,000 of additional expenditure proposals, which are discussed further in this report. Exhibit A to this report provides line item details for all revenues and expenditures in the General Fund and four ISFs discussed in this budget overview. FY 2018/19 Preliminary Budget Total Current Resources 52,164,400$ Less Measure G (8,455,000)$ Operating Revenue 43,709,400$ Less Operating/CIP Expenses (50,475,113)$ (50,475,113)$ Surplus/(Shortfall)(6,765,713)$ Measure G sales tax revenue has been allocated as follows in the proposed budget. Each expenditure is discussed in this report. The Financial Advisory Commission (FAC) is scheduled to meet on May 9 to discuss the proposed budget and was presented with a brief overview on April 11. 2018/19 PROPOSED BUDGET OVERVIEW Attachment 1 BUDGET SHORTFALL (6,765,713)$ MEASURE G FOR POLICE SERVICES 3,150,000$ MEASURE G FOR CAPITAL PROJECTS 3,296,113$ GENERAL FUND CAPITAL PROJECT SAVINGS 1,130,650$ CURRENT RESOURCES TO CURRENT REQUIREMENTS 811,050$ ADDITIONAL PROPOSALS (784,000)$ BUDGET SURPLUS 27,050$ Measure G Revenue 8,455,000$ Police Services (3,150,000) Capital Improvements (3,296,113) Available for Appropriation 2,008,887 18/19 Public Safety Fund Deposit (318,000) Available for Appropriation 1,690,887$ MEASURE G SUMMARY 2 | Page REVENUE CATEGORY 2017/18 2018/19 Tax Revenues 39,664,100 41,659,000 1,994,900 4.79% Licenses & Permits 1,299,700 1,205,900 (93,800) ‐7.78% Intergovernmental 7,265,000 7,045,600 (219,400) ‐3.11% Charges for Services 1,292,200 993,200 (299,000) ‐30.10% Fines 266,000 275,500 9,500 3.45% Use of Money 400,000 470,000 70,000 14.89% Miscellaneous 510,200 515,200 5,000 0.97% Transfers In 190,400 ‐ (190,400) ‐100% TOTAL 50,887,600 52,164,400 1,276,800 2.45% 18/19 vs 17/18 TOP 5 2017/18 2018/19 Sales Taxes 16,776,100 17,355,000 578,900 3.34% Hotel Tax (TOT)8,516,900 9,270,000 753,100 8.12% Property Taxes 8,579,100 8,739,000 159,900 1.83% Fire Property Tax 6,726,000 6,957,600 231,600 3.33% VLF in Lieu 3,708,000 4,078,000 370,000 9.07% TOTAL 44,306,100 46,399,600 2,093,500 4.51% 18/19 vs 17/18 GENERAL FUND REVENUES Compared to the current 17/18 budget, revenues are projected to be approximately 2.5 percent higher ($1,276,800). Revenue details are located on pages 22 to 25 of Exhibit A. The following provides an explanation for most major revenue sources. Top five revenue sources are represented in this chart and equate to 89% ($46,399,600) of total General Fund revenues ($52,164,400). Overall these five revenues are projected to increase by 4.5%. Sales Tax – Sales tax revenue is highly dependent on discretionary spending and larger purchases which are typically driven by healthy economic conditions. Compared to the 17/18 current budget, sales tax revenue is projected to increase by nearly $600,000. The proposed Measure G transaction sales tax revenue for 18/19 is $8,455,000 or 95% of the non-Measure G sales tax revenue which is budgeted at $8,900,000. Sales tax revenue is the largest revenue source for the General Fund. Transient Occupancy Tax (TOT) – Total TOT revenue inclusive of the TOT resort fee is anticipated to be $9,270,000 in 18/19 or the second largest revenue source. Hotel TOT revenue, at $6.4 million, is projected to be $353,100 more when compared to current 17/18 estimates. Stable economic conditions and expanded events continue to attract year-round tourists to the Coachella Valley. Short term vacation rental TOT is projected to increase by $335,000 to $2.4 million as compliance efforts continue with educational outreach and the use of online tracking technology. Property Tax – Property taxes (regular, “no/low”, and Redevelopment pass through) is estimated to increase by nearly 2 percent ($159,900) to $8.7 million. Property taxes are the third largest revenue source for the General Fund. Prop 8 assessment reductions have decreased from 11,581 parcels in 2012 to 4,624 parcels in 2017 and the average residential sales price for 2017 was $429,000. Fire Property Tax – Revenue budgeted in Fire Property Tax distribution is estimated to be $227,600 more than the current year. This increase directly corresponds to Fire and Emergency Operation expenditures; therefore, there is no net gain/loss to the General Fund. This revenue is dependent on City reimbursement requests from the County, interests generated from the Trust, and property tax revenue. Revenue collected over expenditures remains in the County Trust (currently at $9.4 million). License and Permits, Charges for Services, and Fines, Forfeitures & Abatements – Combined these categories are expected to decrease by 7 percent ($93,800) primarily due to sluggish residential development. It is important to remember that many of these revenues are dependent on timing of large commercial projects; if a large project comes forward (or is delayed) these numbers will vary. The City is assessing development proposals with a focus on prudent expansion and long-term economic vitality of the City. 3 | Page GENERAL FUND EXPENDITURES ESTIMATED REQUIREMENTS:2017/18 Current 2018/19 Proposed 18/19 vs 17/18 EXPENDITURES: CITY COUNCIL 324,000$ 308,000$ (16,000)$ CITY MANAGER CITY MANAGER 807,460 867,500 60,040 MARKETING 1,173,350 1,199,800 26,450 CITY ATTORNEY 460,000 485,000 25,000 CITY CLERK 573,340 592,100 18,760 COMMUNITY RESOURCES HUMAN RESOURCES 516,590 495,650 (20,940) CR ADMIN 729,750 743,900 14,150 WELLNESS CENTER 661,420 647,700 (13,720) RECREATION PROGRAMS 366,640 529,300 162,660 CODE ENFORCEMENT 1,153,080 1,156,300 3,220 POLICE 15,879,100 17,114,000 1,234,900 FIRE 6,730,000 6,957,600 227,600 DESIGN & DEVELOPMENT ‐ D&D ADMIN 1,211,870 1,179,300 (32,570) PLANNING 549,760 552,100 2,340 BUILDING 925,650 962,100 36,450 THE HUB 809,160 712,700 (96,460) PW DEVELOPMENT SRVCS 628,330 734,300 105,970 ENGINEERING SERVICES 1,360,620 1,263,500 (97,120) FACILITIES ‐ PARKS MAINTENANCE 1,635,700 2,066,700 431,000 PUBLIC BUILDINGS 1,613,650 1,724,800 111,150 STREETS 8,600 14,900 6,300 FISCAL SERVICES ‐ FINANCE 1,159,860 1,149,400 (10,460) CENTRAL SERVICES 14,779,763 9,018,463 (5,761,300) TOTAL EXPENDITURES 54,057,693$ 50,475,113$ (3,582,580)$ After Departments developed their expenditure budgets, they were evaluated for consistency, reasonableness, and compliance with policies, direction, and guidelines. The current 17/18 budget includes capital project and operating carryovers from 16/17 and one-time adjusted expenditures for land acquisition and the establishment of an OPEB Trust. Without these expenditures the 17/18 budget is $48,010,100. Proposed operational and capital expenditures including transfers out are $50,475,113 or $2.4 million more than the prior year. Expenditure details are located on pages 26 to 82 of Exhibit A. The most significant changes are discussed below. Police – The 18/19 costs are projected to increase by 8% or $1.2 million, down from the 10% projected a few months ago. The proposed budget does not decrease service levels or patrol hours. In addition, the City Manager and Community Resources Director continue to work with the Sheriff’s Department to control expenditures; however, PERS unfunded liability retirement costs continue to increase as the discount rate is lowered for all participating agencies. Parks Maintenance – An increase of $431,000 largely represents the reimplementation of a fully funded internal service fund (ISF) allocation for park replacements. In 17/18, fund balance was used for expenses. Fire – Fire services are projected to increase by $227,600 or 3%. Larger increases have been mitigated by State negotiated labor contracts and prudent contract management. Fire Station #70 is being evaluated for repairs. Findings will be presented later and may be paid from the Fire Trust (currently at $9.4 million). 4 | Page Fund FY 17/18 FY 18/19 Change Equipment Replacement 1,079,300 923,700 (155,600) Information Technology 917,100 1,059,700 142,600 Park Equipment 757,000 675,000 (82,000) Insurance Fund 972,740 921,100 (51,640) 3,726,140 3,579,500 (146,640) Fund FY 17/18 FY 18/19 Change Equipment Replacement 379,400 537,200 157,800 Information Technology 667,000 982,200 315,200 Park Equipment 300,000 655,000 355,000 Insurance Fund 649,000 670,600 21,600 1,995,400 2,845,000 849,600 Expense Category Police 17,114,000$ 34% Fire 6,957,600 14% Salaries & Benefits 10,065,100 20% Transfers Out 6,909,763 14% Other Contracts 3,077,950 6% Maintenance & Operations 3,023,200 6% Internal Service Charges 2,845,000 6% Utilities 467,500 1% Capital Expenses 15,000 0.03% TOTAL 50,475,113$ 100% Budget Capital Improvements (Measure G) 3,296,113$ Capital Improvements (Baseline) 1,552,000 Capital Improvements (Savings) 1,130,650 Landscape & Lighting Fund 624,000 Gas Tax Fund 255,000 Deceased LQ Officers Fund 2,000 SilverRock Fund 50,000 TOTAL 6,909,763$ TRANSFERS OUT SUMMARY Recreation Programs & Special Events – A $75,000 increase reflects the City’s contribution to the Ironman Challenge. In addition, an increase of $64,800 in part-time salaries is needed for additional labor hours and includes an adjustment due to the increase in the minimum wage effective January 2019. City Manager’s Office and The Hub – Payroll increases of $68,340 in the City Manager’s office directly correlates to the payroll decrease in The Hub ($113,960). The former Customer Service Manager position now reports directly to the City Manager as the Management Analyst. Centralized Services – To easily display the current and future impacts of PERS lowering the discount rate from 7.5% to 7% and reducing the amortization schedule from 30 to 20 years, the annual unfunded pension liability contribution ($711,900) is now budgeted in one account in the Centralized Services department. As a result, the PERS City Portion for most departments has been reduced. Contingency for staffing reflects an increase of $50,000 from the original 17/18 budget to $340,000. Throughout the fiscal year, these funds are allocated to departments for performance-based merit increases, salary schedule adjustments in accordance to approved world at work assessments or agreed upon health care cost increases. Transfers Out – When expenditures exceed available resources, the General Fund supports other Special Funds as outlined in the chart. Total funding for capital improvement projects is $5,978,763 or 87% of total transfers out. The funding for the Landscape and Lighting Fund has increased while the Gas Tax Fund and SilverRock Fund have decreased. Revenue and expenses for these Special Funds will be discussed on May 15. Internal Service Charges – Internal service charges to Departments (funded from the General Fund) have increased by $849,600 which represents the restoration of full revenue collected for expenses. In 17/18, prior year savings were used to reduce ISF allocations and ensure the four Funds were not overfunded. Additional revenue totaling $588,700 is charged to Special Revenue Funds. Total allocations plus interest earnings provide total revenue of $3,712,100 for ISFs. GENERAL FUND ALLOCATION SUMMARY BY ISF ISF expenses are detailed on pages 84 to 93 of Exhibit A. Although the General Fund allocation increased, total ISF expenses decreased from 17/18 by $146,640. ISF expenses account for services provided to other departments on a cost or benefiting reimbursement basis. EXPENSE SUMMARY BY ISF 5 | Page GENERAL FUND CAPITAL IMPROVEMENT PROGRAM (CIP) CONTRIBUTIONS REDEVELOPMENT AGENCY LOAN REPAYMENT TO CITY GENERAL FUND RESERVES Reserve/Trust As of 6/30/17 Emergency Reserve Natural Disaster 16,534,000$ Economic Disaster - Total 16,534,000 Cash Flow Reserve 4,134,000 Capital Replacement - Total Reserves 20,668,000 Pension Trust Fund - Unassigned Reserves 14,865,926 Overall Total 35,533,926$ Funding Capital Improvement Program 1,000,000$ Citywide pavement management program 20,000$ Citywide ADA accessible ramps 55,000$ Citywide sidewalk improvements 477,000$ Citywide drainage enhancements 1,552,000$ Total Funding Capital Improvement Project 1,166,500$ Citywide drainage enhancements 2,129,613$ La Quinta landscape renovation improvements 3,296,113$ Total The City has annually allocated $1.5 million of General Fund revenue for CIP projects. The proposed 18/19 budget maintains this level and ensures the maintenance of effort requirements are met to receive Measure A ($1,100,000) and SB1 Gas Tax ($675,500) funding for street maintenance and repairs. In addition, $3,296,113 or nearly 40% of the $8.4 million budgeted from Measure G sales tax revenue is proposed for two CIP projects. The State Department of Finance has approved the last and final Recognized Obligation Payment Schedule (ROPS) for the Successor Agency (former Redevelopment Agency). This provides all necessary resources from property tax revenue until full dissolution in FY 39/40. As part of this approval, the outstanding loan is now calculated at a 4% interest rate resulting in a repayment of $3,113,066 for 18/19. Repayments are divided 80% General Fund unassigned reserves ($2,490,453) and 20% Housing Authority Fund ($622,613). This revenue has not been allocated to expenses. The City in conjunction with the Financial Advisory Commission has conducted a reserve analysis which will result in a new policy, reserve categories, and funding targets. The chart represents the intended reserve categories and omits non-spendable fund balance categories such as receivables and carryovers for multi-year projects. Finance will present a draft Reserve Policy on May 15 and request direction on funding unfunded reserves in the current year; therefore, projected reserves at June 30, 2019 are not presented at this time. 6 | Page The following unfunded staffing adjustment, planning development enhancement, and external requests total $784,000. If approved, these costs would be funded with available resources. Police Services. Police expenditures are projected with an increase of 8% over FY 17/18. With projected increases continuing to fluctuate between 7% to 10% every few months, staff requests setting aside a 2% increase over 17/18 or $318,000 in the Public Safety Fund using Measure G revenue. These funds could be utilized if actual expenditures are more than 8%. The Financial Advisory Commission prefers that these funds remain unappropriated. The Public Safety Fund currently has a balance of $300,000. If approved, the balance would be $618,000. Design and Development. The Planning division is requesting $205,000 for a Highway 111 area plan. On February 27, 2018 the Council and Planning Commission discussed updating the long-term vision of the two-mile, 396-acre regional commercial hub that serves as the City’s primary source of sales tax revenue with 75 retail, service, and restaurant establishments and 21 commercial offices. The plan would determine how the City could capitalize on opportunities such as:  CV Link, which is planned along the Corridor’s northern boundary with potential economic benefits from 13,500 – 16,000 pedestrians, bicyclists, and other users;  Mixed use development is emerging as one of the highest and best uses for development and redevelopment;  Complete street considerations to accommodate the needs of vehicles, bicyclist, pedestrians, and transit; and,  Autonomous vehicles which would result in lower car ownership and significantly reduce parking demand, providing new land use opportunities. The plan would also address the following constraints:  Corridor development is shaped by a myriad of development standards including 13 specific plans, regional commercial, commercial-park zoning district design standards and permitted uses, and Highway 111 design guidelines.  The loss of redevelopment limits economic development tools available to the City for future development.  Market trends such as declining brick-and-mortar sales due to the growth of e-commerce, will influence the viability of the Corridor as a regional commercial destination. UNFUNDED PROPOSALS 7 | Page City Manager and City Clerk. Two staffing requests from the City Manager’s office and City Clerk’s Department, combined would result in one new General Fund position request totaling $81,000. The expenditure would be reduced to $57,000 by eliminating ongoing temporary agency services ($10,000) and reducing part-time salaries by $14,000. These departments currently share a Management Assistant position; however, both departments have evaluated the need for a full-time position. The shared position is currently funded 50% from the Housing Fund and 50% from the City Clerk’s budget. The pie graph below indicates the current funding for one position in the lower half of the graph and the distribution of both positions, should a new position be approved. In addition to the overall management of the City, the City Manager’s office oversees housing programs, marketing, economic development, and citywide software integrations. The requested position would continue to perform housing functions, would enhance economic development, assist with marketing efforts, and provide general office assistance to the department. The additional team member would also assist with: legislation, contracted services oversight, medical cannabis licensing verification, and grant opportunity research. The City Clerk’s department currently has a part-time position which is filled by an experienced retiree managing the building permits/plans scanning project. The digital preservation of historical building records will be completed in 18/19. However, ongoing generation of paper and digital records (online applications through eTRAKiT) will require on-going maintenance and management. In addition, paperless government solutions are being implemented citywide. It is anticipated that the part-time position will become vacant by December 2018, at which time the position will be eliminated should this request be approved. The overlap of additional resources would ensure continuity of these projects, provide an opportunity for training and succession, and will also centralize public records requests processing in the City Clerk’s department. Community Resources. Community Resources has received three external requests, which would require further evaluation based on Council direction.  Desert Springs Publishing (creator of La Quinta Legend in the Making) would partner with the City on a new hardcover book featuring the history and creation of the City. This request would cost $54,000.  Old Town Artisan Studio (OTAS) is requesting $50,000 for the creation of Wellness West. OTAS would provide art-based programs and services including art therapy, classes, and programs for veterans, people with Alzheimer’s, autism, and regular fee-based classes (water color, ceramic, sculpture).  The cities of Coachella and Indio have asked to partner on an east valley Fourth of July celebration, which would take place at the Empire Polo Grounds. Each cities contribution would be $40,000. City Manager’s Office. The Manager’s Office has received two external requests as follows:  Health Assessment and Research for Communities (HARC) is requesting a $10,000 contribution from each city in the Coachella Valley to conduct a 2019 Community Health Survey. The contribution would cover 3% of this year’s budget for the project which will be a three-year, $700,000 endeavor in total. The phone survey will result in a population health data report.  One Future Coachella Valley is seeking a $50,000 contribution. The regional program promotes educational attainment for all students, with emphasis on strategies to support the lowest income students. The program provides career experiences, work-based learning, leadership engagement relationships, and financial aid. Current Position Budget – 50% Housing Fund 50% City Clerk Budget May 1, 2018 2018/19 PROPOSED BUDGET EXHIBIT A ESTIMATED CURRENT RESOURCES: REVENUES: TAXES 41,659,000$ LICENSES & PERMITS 1,205,900 INTERGOVERNMENTAL 7,045,600 CHARGES FOR SERVICES 993,200 FINES & ASSESSMENTS 275,500 OTHER/MISCELLANEOUS 985,200 TOTAL ESTIMATED CURRENT RESOURCES 52,164,400$ MEASURE G SALES TAX (8,455,000)$ ESTIMATED RESOURCES WITHOUT MEASURE G SALES TAX 43,709,400$ ESTIMATED CURRENT REQUIREMENTS: EXPENDITURES: CITY COUNCIL 308,000$ CITY MANAGER 2,067,300$ CITY MANAGER 867,500$ MARKETING/COMMUNITY RELATIONS 1,199,800$ CITY ATTORNEY 485,000$ CITY CLERK 592,100$ COMMUNITY RESOURCES 27,644,450$ HUMAN RESOURCES 495,650$ CR ADMIN 743,900$ WELLNESS CENTER 647,700$ RECREATION PROGRAMS 529,300$ CODE ENFORCEMENT 1,156,300$ POLICE 17,114,000$ FIRE 6,957,600$ DESIGN & DEVELOPMENT 5,404,000$ D&D ADMIN 1,179,300$ PLANNING 552,100$ BUILDING 962,100$ THE HUB 712,700$ PUBLIC WORKS DEVELOPMENT SERVICES 734,300$ ENGINEERING SERVICES 1,263,500$ FACILITIES 3,806,400$ PARKS MAINTENANCE 2,066,700$ PUBLIC BUILDINGS 1,724,800$ STREETS 14,900$ FISCAL SERVICES 10,167,863$ FINANCE 1,149,400$ CENTRAL SERVICES (Includes CIP) 9,018,463$ TOTAL ESTIMATED CURRENT REQUIREMENTS 50,475,113$ BUDGET SHORTFALL (6,765,713)$ MEASURE G FOR POLICE SERVICES 3,150,000$ MEASURE G FOR CAPITAL PROJECTS 3,296,113$ GENERAL FUND CAPITAL PROJECT SAVINGS 1,130,650$ CURRENT RESOURCES TO CURRENT REQUIREMENTS 811,050$ ADDITIONAL PROPOSALS (784,000)$ BUDGET SURPLUS 27,050$ FISCAL YEAR 2018/19 PROPOSED BUDGET CITY OF LA QUINTA GENERAL FUND EXPENDITURES BY DEPARTMENT/DIVISION 1 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 GENERAL FUND OVERVIEW REVENUE SUMMARY Tax Revenues 39,664,100.00 41,659,000.00 1,994,900.00 Licenses & Permits 1,299,700.00 1,205,900.00 -93,800.00 Intergovernmental 7,265,000.00 7,045,600.00 -219,400.00 Charges for Services 1,292,200.00 993,200.00 -299,000.00 Fines, Forfeitures & Abatements 266,000.00 275,500.00 9,500.00 Use of Money & Property 400,000.00 470,000.00 70,000.00 Miscellaneous 510,200.00 515,200.00 5,000.00 Transfers In 190,400.00 0.00 -190,400.00 50,887,600.00 52,164,400.00 1,276,800.00 EXPENSE SUMMARY Salaries and Benefits 10,555,910.00 10,065,100.00 -490,810.00 Contract Services 25,934,500.00 27,149,550.00 1,215,050.00 Maintenance & Operations 2,871,000.00 2,998,200.00 127,200.00 Repair & Maintenance 25,000.00 25,000.00 0.00 Utilities 438,100.00 467,500.00 29,400.00 Capital Expenses 2,015,000.00 15,000.00 -2,000,000.00 Internal Service Charges 1,995,400.00 2,845,000.00 849,600.00 Transfers Out 10,222,783.00 6,909,763.00 -3,313,020.00 54,057,693.00 50,475,113.00 -3,582,580.00 BUDGET SHORTFALL/(SURPLUS -3,170,093.00 1,689,287.00 4,859,380.00 CITY OF LA QUINTA GENERAL FUND REVENUE AND EXPENSE SUMMARY 2018/19 PROPOSED BUDGET 2 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 Salaries and Benefits 7,435,751.88 9,094,100.00 10,555,910.00 10,065,100.00 -490,810.00 Contract Services 23,882,328.95 25,815,100.00 25,934,500.00 27,149,550.00 1,215,050.00 Maintenance & Operations 2,274,236.30 2,782,000.00 2,871,000.00 2,998,200.00 127,200.00 Repair & Maintenance 0.00 0.00 25,000.00 25,000.00 0.00 Utilities 492,227.18 438,100.00 438,100.00 467,500.00 29,400.00 Capital Expenses 2,280,802.17 15,000.00 2,015,000.00 15,000.00 -2,000,000.00 Internal Service Charges 1,941,100.00 1,995,400.00 1,995,400.00 2,845,000.00 849,600.00 Transfers Out 3,028,632.48 8,041,000.00 10,222,783.00 6,909,763.00 -3,313,020.00 GENERAL FUND EXPENSES 41,335,078.96 48,180,700.00 54,057,693.00 50,475,113.00 -3,582,580.00 CITY OF LA QUINTA GENERAL FUND HISTORICAL EXPENSE SUMMARY 2018/19 PROPOSED BUDGET 3 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1001 - City Council 272,268.06 324,000.00 324,000.00 308,000.00 -16,000.00 Salaries and Benefits 245,309.03 279,400.00 279,400.00 272,400.00 -7,000.00 Maintenance & Operations 26,959.03 44,600.00 44,600.00 35,600.00 -9,000.00 1002 - City Manager 845,572.30 769,000.00 807,460.00 867,500.00 60,040.00 Salaries and Benefits 507,337.29 541,400.00 550,960.00 619,300.00 68,340.00 Contract Services 225,658.68 117,000.00 145,900.00 117,000.00 -28,900.00 Maintenance & Operations 81,176.33 81,200.00 81,200.00 94,500.00 13,300.00 Internal Service Charges 31,400.00 29,400.00 29,400.00 36,700.00 7,300.00 1003 - City Attorney 410,886.97 460,000.00 460,000.00 485,000.00 25,000.00 Contract Services 410,886.97 460,000.00 460,000.00 485,000.00 25,000.00 1004 - Human Resources 407,779.18 462,900.00 516,590.00 495,650.00 -20,940.00 Salaries and Benefits 236,680.86 263,400.00 294,990.00 308,200.00 13,210.00 Contract Services 96,965.02 99,800.00 101,900.00 69,250.00 -32,650.00 Maintenance & Operations 55,333.30 82,900.00 102,900.00 94,900.00 -8,000.00 Internal Service Charges 18,800.00 16,800.00 16,800.00 23,300.00 6,500.00 1005 - City Clerk 528,439.58 552,200.00 573,340.00 592,100.00 18,760.00 Salaries and Benefits 365,570.45 430,500.00 436,740.00 409,400.00 -27,340.00 Contract Services 121,051.57 80,100.00 91,000.00 119,000.00 28,000.00 Maintenance & Operations 11,317.56 12,200.00 16,200.00 21,200.00 5,000.00 Internal Service Charges 30,500.00 29,400.00 29,400.00 42,500.00 13,100.00 1006 - Finance 1,018,008.84 1,123,200.00 1,159,860.00 1,149,400.00 -10,460.00 Salaries and Benefits 684,806.55 866,500.00 898,160.00 874,500.00 -23,660.00 Contract Services 163,073.74 162,000.00 167,000.00 148,000.00 -19,000.00 Maintenance & Operations 23,228.55 27,600.00 27,600.00 34,900.00 7,300.00 Internal Service Charges 146,900.00 67,100.00 67,100.00 92,000.00 24,900.00 1007 - Central Services 6,173,386.27 9,307,300.00 14,779,763.00 9,018,463.00 -5,761,300.00 Salaries and Benefits 168,954.95 436,000.00 1,726,680.00 1,221,900.00 -504,780.00 Maintenance & Operations 382,755.46 195,300.00 195,300.00 206,100.00 10,800.00 Utilities 6,367.35 0.00 0.00 0.00 0.00 Capital Expenses 2,254,676.03 0.00 2,000,000.00 0.00 -2,000,000.00 Internal Service Charges 332,000.00 635,000.00 635,000.00 680,700.00 45,700.00 Transfers Out 3,028,632.48 8,041,000.00 10,222,783.00 6,909,763.00 -3,313,020.00 2001 - Police 14,451,363.86 15,879,100.00 15,879,100.00 17,114,000.00 1,234,900.00 Contract Services 14,417,358.37 15,830,400.00 15,830,400.00 17,051,000.00 1,220,600.00 Maintenance & Operations 1,401.40 9,700.00 9,700.00 10,000.00 300.00 Utilities 2,504.09 14,000.00 14,000.00 14,000.00 0.00 Internal Service Charges 30,100.00 25,000.00 25,000.00 39,000.00 14,000.00 2002 - Fire 5,816,590.43 6,730,000.00 6,730,000.00 6,957,600.00 227,600.00 Contract Services 5,643,879.97 6,485,500.00 6,485,500.00 6,689,500.00 204,000.00 Maintenance & Operations 64,526.13 101,500.00 76,500.00 76,500.00 0.00 Repair & Maintenance 0.00 0.00 25,000.00 25,000.00 0.00 Utilities 52,804.50 72,000.00 72,000.00 82,000.00 10,000.00 Capital Expenses 3,379.83 15,000.00 15,000.00 15,000.00 0.00 Internal Service Charges 52,000.00 56,000.00 56,000.00 69,600.00 13,600.00 3001 - Community Resources Administration 783,381.65 703,500.00 729,750.00 743,900.00 14,150.00 Salaries and Benefits 469,592.03 467,700.00 480,450.00 554,900.00 74,450.00 Contract Services 48,360.00 60,000.00 73,500.00 65,000.00 -8,500.00 Maintenance & Operations 190,429.62 127,500.00 127,500.00 77,400.00 -50,100.00 Internal Service Charges 75,000.00 48,300.00 48,300.00 46,600.00 -1,700.00 3002 - Wellness Center Operations 522,038.55 679,300.00 661,420.00 647,700.00 -13,720.00 Salaries and Benefits 361,513.86 513,300.00 495,420.00 427,800.00 -67,620.00 Contract Services 88,593.37 87,300.00 87,300.00 99,300.00 12,000.00 Maintenance & Operations 30,080.32 61,900.00 61,900.00 63,500.00 1,600.00 Utilities 1,851.00 0.00 0.00 0.00 0.00 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DIVISION 2018/19 PROPOSED BUDGET 4 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 Internal Service Charges 40,000.00 16,800.00 16,800.00 57,100.00 40,300.00 3003 - Recreation Programs & Special Events 129,864.59 365,000.00 366,640.00 529,300.00 162,660.00 Salaries and Benefits 59,721.27 119,900.00 121,540.00 199,700.00 78,160.00 Contract Services 373.46 0.00 0.00 0.00 0.00 Maintenance & Operations 36,769.86 208,300.00 208,300.00 285,300.00 77,000.00 Internal Service Charges 33,000.00 36,800.00 36,800.00 44,300.00 7,500.00 3005 - Parks Maintenance 1,708,800.97 1,582,300.00 1,635,700.00 2,066,700.00 431,000.00 Salaries and Benefits 358,327.61 426,400.00 444,800.00 427,300.00 -17,500.00 Contract Services 365,284.91 427,000.00 422,000.00 426,000.00 4,000.00 Maintenance & Operations 128,412.80 137,600.00 177,600.00 223,600.00 46,000.00 Utilities 292,875.65 223,100.00 223,100.00 240,500.00 17,400.00 Internal Service Charges 563,900.00 368,200.00 368,200.00 749,300.00 381,100.00 3007 - Marketing & Community Relations 830,897.63 1,170,400.00 1,173,350.00 1,199,800.00 26,450.00 Salaries and Benefits 170,937.27 91,800.00 94,750.00 102,900.00 8,150.00 Contract Services 282,830.83 272,500.00 272,500.00 287,500.00 15,000.00 Maintenance & Operations 360,629.53 797,700.00 797,700.00 797,700.00 0.00 Internal Service Charges 16,500.00 8,400.00 8,400.00 11,700.00 3,300.00 3008 - Public Buildings 1,376,354.84 1,601,100.00 1,613,650.00 1,724,800.00 111,150.00 Salaries and Benefits 298,172.55 400,800.00 413,350.00 411,500.00 -1,850.00 Contract Services 93,031.41 118,000.00 95,000.00 113,000.00 18,000.00 Maintenance & Operations 775,079.98 759,900.00 782,900.00 799,600.00 16,700.00 Utilities 135,824.59 129,000.00 129,000.00 131,000.00 2,000.00 Capital Expenses 22,746.31 0.00 0.00 0.00 0.00 Internal Service Charges 51,500.00 193,400.00 193,400.00 269,700.00 76,300.00 6001 - Design & Development Administration 1,003,341.29 1,205,500.00 1,211,870.00 1,179,300.00 -32,570.00 Salaries and Benefits 778,504.07 922,900.00 929,270.00 832,900.00 -96,370.00 Contract Services 111,944.22 155,000.00 140,000.00 140,000.00 0.00 Maintenance & Operations 33,293.00 26,900.00 41,900.00 42,200.00 300.00 Internal Service Charges 79,600.00 100,700.00 100,700.00 164,200.00 63,500.00 6002 - Planning 504,010.65 524,700.00 549,760.00 552,100.00 2,340.00 Salaries and Benefits 338,110.10 363,700.00 374,760.00 378,300.00 3,540.00 Contract Services 95,534.54 96,000.00 108,000.00 108,000.00 0.00 Maintenance & Operations 17,866.01 28,200.00 30,200.00 30,800.00 600.00 Internal Service Charges 52,500.00 36,800.00 36,800.00 35,000.00 -1,800.00 6003 - Building 695,619.70 917,200.00 925,650.00 962,100.00 36,450.00 Salaries and Benefits 433,369.42 527,600.00 536,050.00 522,500.00 -13,550.00 Contract Services 191,036.17 324,000.00 324,000.00 324,000.00 0.00 Maintenance & Operations 8,614.11 8,900.00 8,900.00 8,500.00 -400.00 Internal Service Charges 62,600.00 56,700.00 56,700.00 107,100.00 50,400.00 6004 - Code Compliance/Animal Control 911,979.40 1,134,500.00 1,153,080.00 1,156,300.00 3,220.00 Salaries and Benefits 568,625.32 731,700.00 735,280.00 695,100.00 -40,180.00 Contract Services 213,371.01 246,000.00 256,000.00 260,000.00 4,000.00 Maintenance & Operations 22,083.07 25,700.00 30,700.00 38,200.00 7,500.00 Internal Service Charges 107,900.00 131,100.00 131,100.00 163,000.00 31,900.00 6006 - The Hub 638,565.28 786,300.00 809,160.00 712,700.00 -96,460.00 Salaries and Benefits 507,741.50 715,600.00 733,460.00 619,500.00 -113,960.00 Contract Services 48,067.44 10,000.00 10,000.00 10,000.00 0.00 Maintenance & Operations 3,356.34 14,600.00 19,600.00 19,100.00 -500.00 Internal Service Charges 79,400.00 46,100.00 46,100.00 64,100.00 18,000.00 7002 - Public Works Development Services 436,843.46 595,200.00 628,330.00 734,300.00 105,970.00 Salaries and Benefits 313,261.27 334,100.00 337,230.00 430,000.00 92,770.00 Contract Services 79,082.50 215,000.00 245,000.00 230,000.00 -15,000.00 Maintenance & Operations 1,499.69 6,200.00 6,200.00 6,700.00 500.00 Internal Service Charges 43,000.00 39,900.00 39,900.00 67,600.00 27,700.00 7003 - Streets 10,754.70 8,600.00 8,600.00 14,900.00 6,300.00 Maintenance & Operations 10,754.70 8,600.00 8,600.00 14,900.00 6,300.00 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DIVISION 2018/19 PROPOSED BUDGET 5 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 7006 - Engineering Services 1,858,330.76 1,299,400.00 1,360,620.00 1,263,500.00 -97,120.00 Salaries and Benefits 569,216.48 661,400.00 672,620.00 757,000.00 84,380.00 Contract Services 1,185,944.77 569,500.00 619,500.00 408,000.00 -211,500.00 Maintenance & Operations 8,669.51 15,000.00 15,000.00 17,000.00 2,000.00 Internal Service Charges 94,500.00 53,500.00 53,500.00 81,500.00 28,000.00 GENERAL FUND EXPENSES 41,335,078.96 48,180,700.00 54,057,693.00 50,475,113.00 -3,582,580.00 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DIVISION 2018/19 PROPOSED BUDGET 6 THIS PAGE INTENTIONALLY LEFT BLANK 7 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1002 - City Manager 225,658.68 117,000.00 145,900.00 117,000.00 -28,900.00 1003 - City Attorney 410,886.97 460,000.00 460,000.00 485,000.00 25,000.00 1004 - Human Resources 96,965.02 99,800.00 101,900.00 69,250.00 -32,650.00 1005 - City Clerk 121,051.57 80,100.00 91,000.00 119,000.00 28,000.00 1006 - Finance 163,073.74 162,000.00 167,000.00 148,000.00 -19,000.00 2001 - Police 14,417,358.37 15,830,400.00 15,830,400.00 17,051,000.00 1,220,600.00 2002 - Fire 5,643,879.97 6,485,500.00 6,485,500.00 6,689,500.00 204,000.00 3001 - Community Resources Administration 48,360.00 60,000.00 73,500.00 65,000.00 -8,500.00 3002 - Wellness Center Operations 88,593.37 87,300.00 87,300.00 99,300.00 12,000.00 3003 - Recreation Programs & Special Events 373.46 0.00 0.00 0.00 0.00 3005 - Parks Maintenance 365,284.91 427,000.00 422,000.00 426,000.00 4,000.00 3007 - Marketing & Community Relations 282,830.83 272,500.00 272,500.00 287,500.00 15,000.00 3008 - Public Buildings 93,031.41 118,000.00 95,000.00 113,000.00 18,000.00 6001 - Design & Development Administration 111,944.22 155,000.00 140,000.00 140,000.00 0.00 6002 - Planning 95,534.54 96,000.00 108,000.00 108,000.00 0.00 6003 - Building 191,036.17 324,000.00 324,000.00 324,000.00 0.00 6004 - Code Compliance/Animal Control 213,371.01 246,000.00 256,000.00 260,000.00 4,000.00 6006 - The Hub 48,067.44 10,000.00 10,000.00 10,000.00 0.00 7002 - Public Works Development Services 79,082.50 215,000.00 245,000.00 230,000.00 -15,000.00 7006 - Engineering Services 1,185,944.77 569,500.00 619,500.00 408,000.00 -211,500.00 CONTRACT SERVICES TOTAL 23,882,328.95 25,815,100.00 25,934,500.00 27,149,550.00 1,215,050.00 CITY OF LA QUINTA GENERAL FUND CONTRACT SERVICES SUMMARY 2018/19 PROPOSED BUDGET 8 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1002 - City Manager 96,410.04 92,000.00 92,000.00 92,000.00 0.00101-1002-60101 128,876.86 25,000.00 53,900.00 25,000.00 -28,900.00101-1002-60103 371.78 0.00 0.00 0.00 0.00101-1002-60108 Contract Services - Administrative Professional Services Technical 1002 - City Manager Totals:225,658.68 117,000.00 145,900.00 117,000.00 -28,900.00 1003 - City Attorney 360,685.14 420,000.00 420,000.00 440,000.00 20,000.00101-1003-60153 Attorney 50,201.83 40,000.00 40,000.00 45,000.00 5,000.00101-1003-60154 Attorney/Litigation 1003 - City Attorney Totals:410,886.97 460,000.00 460,000.00 485,000.00 25,000.00 1004 - Human Resources 63,597.49 90,000.00 92,100.00 52,750.00 -39,350.00101-1004-60103 Professional Services 27,739.83 9,800.00 9,800.00 16,500.00 6,700.00101-1004-60104 Consultants 5,627.70 0.00 0.00 0.00 0.00101-1004-60125 Temporary Agency Services 1004 - Human Resources Totals:96,965.02 99,800.00 101,900.00 69,250.00 -32,650.00 1005 - City Clerk 114,637.82 80,100.00 82,600.00 109,000.00 26,400.00101-1005-60103 Professional Services 6,413.75 0.00 8,400.00 10,000.00 1,600.00101-1005-60125 Temporary Agency Services 1005 - City Clerk Totals:121,051.57 80,100.00 91,000.00 119,000.00 28,000.00 1006 - Finance 16,162.75 30,000.00 10,000.00 10,000.00 0.00101-1006-60102 Administration 50,647.17 68,000.00 73,000.00 37,000.00 -36,000.00101-1006-60103 Professional Services 17,526.67 0.00 20,000.00 36,000.00 16,000.00101-1006-60104 Consultants 53,641.00 64,000.00 64,000.00 65,000.00 1,000.00101-1006-60106 Auditors 25,096.15 0.00 0.00 0.00 0.00101-1006-60125 Temporary Agency Services 1006 - Finance Totals:163,073.74 162,000.00 167,000.00 148,000.00 -19,000.00 2001 - Police 4,309.56 10,000.00 10,000.00 10,000.00 0.00101-2001-60109 LQ Police Volunteers 8,240,424.63 9,130,000.00 9,130,000.00 9,862,000.00 732,000.00101-2001-60161 Sheriff Patrol 165,614.11 217,000.00 217,000.00 258,000.00 41,000.00101-2001-60162 Police Overtime 2,092,206.28 1,993,000.00 1,993,000.00 1,960,000.00 -33,000.00101-2001-60163 Target Team 591,241.20 757,000.00 757,000.00 825,000.00 68,000.00101-2001-60164 Community Services Officer 55,859.02 0.00 0.00 58,000.00 58,000.00101-2001-60165 Special Enforcement/Humana 153,806.04 176,000.00 176,000.00 191,000.00 15,000.00101-2001-60166 Gang Task Force 143,054.61 176,000.00 176,000.00 191,000.00 15,000.00101-2001-60167 Narcotics Task Force 178,851.13 90,000.00 90,000.00 185,000.00 95,000.00101-2001-60168 School Officer 1,121,782.46 1,327,000.00 1,327,000.00 1,435,000.00 108,000.00101-2001-60169 Motor Officer 444,967.16 502,000.00 502,000.00 545,000.00 43,000.00101-2001-60170 Dedicated Sargeant 262,350.40 287,000.00 287,000.00 312,000.00 25,000.00101-2001-60171 Dedicated Lieutenant 461,885.67 490,000.00 490,000.00 510,000.00 20,000.00101-2001-60172 Sheriff - Mileage 0.00 20,000.00 20,000.00 18,000.00 -2,000.00101-2001-60173 Booking Fees 16,760.80 21,400.00 21,400.00 20,000.00 -1,400.00101-2001-60174 Blood/Alcohol Testing 61,454.10 108,000.00 108,000.00 95,000.00 -13,000.00101-2001-60175 Special Enforcement Funds 419,059.20 420,000.00 420,000.00 470,000.00 50,000.00101-2001-60176 Sheriff - Other 0.00 44,000.00 44,000.00 10,000.00 -34,000.00101-2001-60178 COPS Robbery Prevention 0.00 55,000.00 55,000.00 89,000.00 34,000.00101-2001-60179 COPS Burglary/Theft Prevention 3,732.00 7,000.00 7,000.00 7,000.00 0.00101-2001-60193 Sexual Assault Exam Fees 2001 - Police Totals:14,417,358.37 15,830,400.00 15,830,400.00 17,051,000.00 1,220,600.00 2002 - Fire 4,918.00 2,000.00 2,000.00 2,000.00 0.00101-2002-60103 Professional Services 0.00 2,000.00 2,000.00 2,000.00 0.00101-2002-60107 Instructors 762.56 2,500.00 2,500.00 2,500.00 0.00101-2002-60110 Volunteers - Fire 14,594.40 16,000.00 16,000.00 16,000.00 0.00101-2002-60112 Landscape Contract 2,373.00 3,000.00 3,000.00 4,000.00 1,000.00101-2002-60116 Pest Control 51,935.66 7,000.00 7,000.00 3,000.00 -4,000.00101-2002-60123 Security & Alarm 5,368,873.97 6,170,000.00 6,170,000.00 6,350,000.00 180,000.00101-2002-60139 Fire Service Costs 200,376.52 223,000.00 223,000.00 250,000.00 27,000.00101-2002-60140 MOU - Indio Ladder Truck 45.86 60,000.00 60,000.00 60,000.00 0.00101-2002-60525 Career Builder 2002 - Fire Totals:5,643,879.97 6,485,500.00 6,485,500.00 6,689,500.00 204,000.00 CITY OF LA QUINTA GENERAL FUND CONTRACT SERVICE DETAILS 2018/19 PROPOSED BUDGET 9 CITY OF LA QUINT… 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 3001 - Community Resources Administration 0.00 0.00 3,500.00 5,000.00 1,500.00101-3001-60103 Professional Services 48,360.00 60,000.00 70,000.00 60,000.00 -10,000.00101-3001-60135 Boys & Girls Club 3001 - Community Resources Administration Totals:48,360.00 60,000.00 73,500.00 65,000.00 -8,500.00 3002 - Wellness Center Operations 2,500.00 4,300.00 4,300.00 4,300.00 0.00101-3002-60103 Professional Services 83,093.37 80,000.00 80,000.00 92,000.00 12,000.00101-3002-60107 Instructors 3,000.00 3,000.00 3,000.00 3,000.00 0.00101-3002-60108 Technical 3002 - Wellness Center Operations Totals:88,593.37 87,300.00 87,300.00 99,300.00 12,000.00 3003 - Recreation Programs & Special Events 373.46 0.00 0.00 0.00 0.00101-3003-60107 Instructors 3003 - Recreation Programs & Special Events Totals:373.46 0.00 0.00 0.00 0.00 3005 - Parks Maintenance 8,965.90 25,000.00 20,000.00 0.00 -20,000.00101-3005-60104 Consultants 345,231.73 382,000.00 382,000.00 426,000.00 44,000.00101-3005-60112 Landscape Contract 11,342.28 20,000.00 20,000.00 0.00 -20,000.00101-3005-60113 Landscape Improvements -255.00 0.00 0.00 0.00 0.00101-3005-60123 Security & Alarm 3005 - Parks Maintenance Totals:365,284.91 427,000.00 422,000.00 426,000.00 4,000.00 3007 - Marketing & Community Relations 270,330.83 260,000.00 260,000.00 275,000.00 15,000.00101-3007-60151 GPSCVB 12,500.00 12,500.00 12,500.00 12,500.00 0.00101-3007-60152 Jacqueline Cochran Regional Airport 3007 - Marketing & Community Relations Totals:282,830.83 272,500.00 272,500.00 287,500.00 15,000.00 3008 - Public Buildings 2,411.94 25,000.00 0.00 0.00 0.00101-3008-60108 Technical 80,427.05 81,000.00 81,000.00 100,000.00 19,000.00101-3008-60115 Janitorial 3,682.20 4,000.00 4,000.00 4,000.00 0.00101-3008-60116 Pest Control 6,510.22 8,000.00 8,000.00 7,000.00 -1,000.00101-3008-60123 Security & Alarm 0.00 0.00 2,000.00 2,000.00 0.00101-3008-60196 Annual Permits/Inspections 3008 - Public Buildings Totals:93,031.41 118,000.00 95,000.00 113,000.00 18,000.00 6001 - Design & Development Administration 37,362.25 90,000.00 110,000.00 75,000.00 -35,000.00101-6001-60103 Professional Services 68,048.57 65,000.00 30,000.00 65,000.00 35,000.00101-6001-60104 Consultants 6,533.40 0.00 0.00 0.00 0.00101-6001-60125 Temporary Agency Services 6001 - Design & Development Administration Totals:111,944.22 155,000.00 140,000.00 140,000.00 0.00 6002 - Planning 95,534.54 96,000.00 108,000.00 108,000.00 0.00101-6002-60103 Professional Services 6002 - Planning Totals:95,534.54 96,000.00 108,000.00 108,000.00 0.00 6003 - Building 191,036.17 324,000.00 324,000.00 324,000.00 0.00101-6003-60118 Plan Checks 6003 - Building Totals:191,036.17 324,000.00 324,000.00 324,000.00 0.00 6004 - Code Compliance/Animal Control 1,433.80 1,000.00 1,000.00 2,000.00 1,000.00101-6004-60108 Technical 22,297.01 30,000.00 30,000.00 30,000.00 0.00101-6004-60111 Administrative Citation Services 0.00 1,000.00 1,000.00 1,000.00 0.00101-6004-60119 Vehicle Abatement 6,184.00 10,000.00 10,000.00 12,000.00 2,000.00101-6004-60120 Lot Cleaning 14,445.46 0.00 10,000.00 10,000.00 0.00101-6004-60125 Temporary Agency Services 0.00 14,000.00 14,000.00 15,000.00 1,000.00101-6004-60194 Veterinary Service 169,010.74 190,000.00 190,000.00 190,000.00 0.00101-6004-60197 Animal Shelter Contract Service 6004 - Code Compliance/Animal Control Totals:213,371.01 246,000.00 256,000.00 260,000.00 4,000.00 CITY OF LA QUINTA GENERAL FUND CONTRACT SERVICE DETAILS 2018/19 PROPOSED BUDGET 10 CITY OF LA QUINTA 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 6006 - The Hub 2,700.00 10,000.00 10,000.00 10,000.00 0.00101-6006-60104 Consultants 45,367.44 0.00 0.00 0.00 0.00101-6006-60125 Temporary Agency Services 6006 - The Hub Totals:48,067.44 10,000.00 10,000.00 10,000.00 0.00 7002 - Public Works Development Services 24,782.00 60,000.00 60,000.00 75,000.00 15,000.00101-7002-60103 Professional Services 0.00 5,000.00 5,000.00 5,000.00 0.00101-7002-60104 Consultants 54,300.50 150,000.00 180,000.00 150,000.00 -30,000.00101-7002-60183 Map/Plan Checking 7002 - Public Works Development Services Totals:79,082.50 215,000.00 245,000.00 230,000.00 -15,000.00 7006 - Engineering Services 199,900.00 248,000.00 233,000.00 20,000.00 -213,000.00101-7006-60104 Consultants 0.00 300.00 0.00 0.00 0.00101-7006-60128 Vacant Property Dust Control 218,569.50 218,400.00 218,400.00 220,000.00 1,600.00101-7006-60144 Contract Traffic Engineer 31,063.35 5,000.00 70,000.00 70,000.00 0.00101-7006-60145 Traffic Counts/Studies 267,471.01 97,800.00 98,100.00 98,000.00 -100.00101-7006-60146 PM 10 - Dust Control 468,940.91 0.00 0.00 0.00 0.00101-7006-60157 Rental Expense - SRR Fence 7006 - Engineering Services Totals:1,185,944.77 569,500.00 619,500.00 408,000.00 -211,500.00 CONTRACT SERVICES TOTAL 23,882,328.95 25,815,100.00 25,934,500.00 27,149,550.00 1,215,050.00 CITY OF LA QUINTA GENERAL FUND CONTRACT SERVICE DETAILS 2018/19 PROPOSED BUDGET 11 THIS PAGE INTENTIONALLY LEFT BLANK 12 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 101 - GENERAL FUND 7,428,221.31 9,094,100.00 9,030,510.00 10,065,100.00 1,034,590.00 1001 - City Council 245,309.03 279,400.00 279,400.00 272,400.00 -7,000.00 1002 - City Manager 507,337.29 541,400.00 550,960.00 619,300.00 68,340.00 1004 - Human Resources 236,680.86 263,400.00 294,990.00 308,200.00 13,210.00 1005 - City Clerk 365,570.45 430,500.00 436,740.00 409,400.00 -27,340.00 1006 - Finance 684,806.55 866,500.00 898,160.00 874,500.00 -23,660.00 1007 - Central Services 168,954.95 436,000.00 203,280.00 1,221,900.00 1,018,620.00 3001 - Community Resources Administration 469,592.03 467,700.00 480,450.00 554,900.00 74,450.00 3002 - Wellness Center Operations 361,513.86 513,300.00 495,420.00 427,800.00 -67,620.00 3003 - Recreation Programs & Special Events 59,721.27 119,900.00 121,540.00 199,700.00 78,160.00 3005 - Parks Maintenance 358,327.61 426,400.00 444,800.00 427,300.00 -17,500.00 3007 - Marketing & Community Relations 170,937.27 91,800.00 94,750.00 102,900.00 8,150.00 3008 - Public Buildings 298,172.55 400,800.00 413,350.00 411,500.00 -1,850.00 6001 - Design & Development Administration 778,504.07 922,900.00 929,270.00 832,900.00 -96,370.00 6002 - Planning 338,110.10 363,700.00 374,760.00 378,300.00 3,540.00 6003 - Building 433,369.42 527,600.00 536,050.00 522,500.00 -13,550.00 6004 - Code Compliance/Animal Control 568,625.32 731,700.00 735,280.00 695,100.00 -40,180.00 6006 - The Hub 500,210.93 715,600.00 731,460.00 619,500.00 -111,960.00 7002 - Public Works Development Services 313,261.27 334,100.00 337,230.00 430,000.00 92,770.00 7006 - Engineering Services 569,216.48 661,400.00 672,620.00 757,000.00 84,380.00 201 - GAS TAX FUND 885,496.81 816,900.00 824,140.00 715,000.00 -109,140.00 7003 - Streets 885,496.81 816,900.00 824,140.00 715,000.00 -109,140.00 215 - LIGHTING & LANDSCAPING FUND 103,662.84 227,500.00 236,120.00 235,500.00 -620.00 7004 - Lighting & Landscaping 103,662.84 227,500.00 236,120.00 235,500.00 -620.00 241 - HOUSING AUTHORITY 43,809.65 102,000.00 92,820.00 187,900.00 95,080.00 9101 - Housing Authority - Admin 43,809.65 102,000.00 92,820.00 187,900.00 95,080.00 502 - INFORMATION TECHNOLOGY 801.86 70,000.00 73,100.00 67,700.00 -5,400.00 0000 - Undesignated 801.86 70,000.00 73,100.00 67,700.00 -5,400.00 504 - INSURANCE FUND 50,373.25 98,200.00 100,740.00 93,400.00 -7,340.00 1010 - Insurance 50,373.25 98,200.00 100,740.00 93,400.00 -7,340.00 601 - SILVERROCK RESORT 47,115.31 40,000.00 42,070.00 39,700.00 -2,370.00 0000 - Undesignated 47,115.31 40,000.00 42,070.00 39,700.00 -2,370.00 760 - SUPPLEMENTAL PENSION PLAN 12,832.86 0.00 0.00 0.00 0.00 0000 - Undesignated 12,832.86 0.00 0.00 0.00 0.00 SALARY & BENEFITS TOTAL 8,572,313.89 10,448,700.00 10,399,500.00 11,404,300.00 1,004,800.00 CITY OF LA QUINTA CITY-WIDE PAYROLL SUMMARY 2018/19 PROPOSED BUDGET 13 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 101 - GENERAL FUND 1001 - City Council 145,185.61 144,000.00 144,000.00 144,000.00 0.00101-1001-50108 Salaries - Council Members 2,335.00 2,400.00 2,400.00 2,400.00 0.00101-1001-50150 Other Compensation 24,267.44 20,000.00 20,000.00 10,300.00 -9,700.00101-1001-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-1001-50210 PERS-Survivor Benefits 58,919.44 90,900.00 90,900.00 100,100.00 9,200.00101-1001-50221 Medical Insurance 774.91 0.00 0.00 0.00 0.00101-1001-50222 Vision Insurance 4,337.26 0.00 0.00 0.00 0.00101-1001-50223 Dental Insurance 831.86 0.00 0.00 0.00 0.00101-1001-50224 Life Insurance 0.00 1,600.00 1,600.00 1,600.00 0.00101-1001-50225 Long Term Disability 4,500.00 14,800.00 14,800.00 8,300.00 -6,500.00101-1001-50230 Workers Comp Insurance 2,120.10 5,600.00 5,600.00 5,600.00 0.00101-1001-50240 Social Security-Medicare 2,037.41 0.00 0.00 0.00 0.00101-1001-50241 Social Security-FICA 1001 - City Council Totals:245,309.03 279,400.00 279,400.00 272,400.00 -7,000.00 1002 - City Manager 366,492.72 375,800.00 384,690.00 464,900.00 80,210.00101-1002-50101 Permanent Full Time 1,161.00 1,200.00 1,200.00 1,300.00 100.00101-1002-50150 Other Compensation 59,082.84 71,800.00 72,470.00 43,700.00 -28,770.00101-1002-50200 PERS-City Portion 0.00 100.00 100.00 200.00 100.00101-1002-50210 PERS-Survivor Benefits 10,000.00 10,000.00 10,000.00 10,000.00 0.00101-1002-50215 Other Fringe Benefits 46,394.37 63,700.00 63,700.00 83,100.00 19,400.00101-1002-50221 Medical Insurance 803.87 0.00 0.00 0.00 0.00101-1002-50222 Vision Insurance 4,438.88 0.00 0.00 0.00 0.00101-1002-50223 Dental Insurance 312.19 0.00 0.00 0.00 0.00101-1002-50224 Life Insurance 2,591.83 3,000.00 3,000.00 4,000.00 1,000.00101-1002-50225 Long Term Disability 10,600.00 10,300.00 10,300.00 5,300.00 -5,000.00101-1002-50230 Workers Comp Insurance 5,459.59 5,500.00 5,500.00 6,800.00 1,300.00101-1002-50240 Social Security-Medicare 1002 - City Manager Totals:507,337.29 541,400.00 550,960.00 619,300.00 68,340.00 1004 - Human Resources 138,377.09 153,200.00 162,690.00 177,300.00 14,610.00101-1004-50101 Permanent Full Time 6,133.11 9,400.00 30,800.00 38,300.00 7,500.00101-1004-50102 Salaries - Part Time 20,371.23 25,500.00 26,200.00 15,800.00 -10,400.00101-1004-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-1004-50210 PERS-Survivor Benefits 26,040.53 36,400.00 36,400.00 40,100.00 3,700.00101-1004-50221 Medical Insurance 594.07 0.00 0.00 0.00 0.00101-1004-50222 Vision Insurance 2,802.10 0.00 0.00 0.00 0.00101-1004-50223 Dental Insurance 123.41 0.00 0.00 0.00 0.00101-1004-50224 Life Insurance 1,437.25 1,900.00 1,900.00 2,100.00 200.00101-1004-50225 Long Term Disability 5,700.00 5,900.00 5,900.00 3,400.00 -2,500.00101-1004-50230 Workers Comp Insurance 2,095.49 3,000.00 3,000.00 2,600.00 -400.00101-1004-50240 Social Security-Medicare 380.33 0.00 0.00 0.00 0.00101-1004-50241 Social Security-FICA 32,226.25 25,000.00 25,000.00 25,000.00 0.00101-1004-50244 State Unemployment Insurance 400.00 3,000.00 3,000.00 3,500.00 500.00101-1004-50252 Fitness Membership Reimbursement 1004 - Human Resources Totals:236,680.86 263,400.00 294,990.00 308,200.00 13,210.00 1005 - City Clerk 234,634.21 262,900.00 260,680.00 268,300.00 7,620.00101-1005-50101 Permanent Full Time 27,903.30 26,000.00 26,000.00 28,000.00 2,000.00101-1005-50102 Salaries - Part Time 459.00 500.00 500.00 400.00 -100.00101-1005-50150 Other Compensation 48,880.31 55,400.00 56,860.00 25,900.00 -30,960.00101-1005-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-1005-50210 PERS-Survivor Benefits 33,511.32 68,200.00 68,200.00 73,100.00 4,900.00101-1005-50221 Medical Insurance 674.47 0.00 0.00 0.00 0.00101-1005-50222 Vision Insurance 2,814.15 0.00 0.00 0.00 0.00101-1005-50223 Dental Insurance 275.97 0.00 0.00 0.00 0.00101-1005-50224 Life Insurance 2,180.71 2,900.00 2,900.00 3,100.00 200.00101-1005-50225 Long Term Disability 8,700.00 10,300.00 10,300.00 6,100.00 -4,200.00101-1005-50230 Workers Comp Insurance 3,807.00 4,200.00 4,200.00 4,400.00 200.00101-1005-50240 Social Security-Medicare 1,730.01 0.00 0.00 0.00 0.00101-1005-50241 Social Security-FICA 0.00 0.00 7,000.00 0.00 -7,000.00101-1005-50300 Employee Recognition 1005 - City Clerk Totals:365,570.45 430,500.00 436,740.00 409,400.00 -27,340.00 1006 - Finance CITY OF LA QUINTA CITY-WIDE PAYROLL DETAILS 2018/19 PROPOSED BUDGET 14 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 507,540.02 607,100.00 636,380.00 631,300.00 -5,080.00101-1006-50101 Permanent Full Time 675.00 5,400.00 5,400.00 3,100.00 -2,300.00101-1006-50110 Commissions & Boards 599.00 500.00 500.00 500.00 0.00101-1006-50150 Other Compensation 67,578.14 66,700.00 69,080.00 49,600.00 -19,480.00101-1006-50200 PERS-City Portion 0.00 200.00 200.00 200.00 0.00101-1006-50210 PERS-Survivor Benefits 2,385.00 2,400.00 2,400.00 2,400.00 0.00101-1006-50215 Other Fringe Benefits 70,068.97 145,400.00 145,400.00 158,200.00 12,800.00101-1006-50221 Medical Insurance 1,107.32 0.00 0.00 0.00 0.00101-1006-50222 Vision Insurance 4,878.68 0.00 0.00 0.00 0.00101-1006-50223 Dental Insurance 494.42 0.00 0.00 0.00 0.00101-1006-50224 Life Insurance 4,315.66 6,400.00 6,400.00 6,900.00 500.00101-1006-50225 Long Term Disability 17,700.00 23,600.00 23,600.00 13,100.00 -10,500.00101-1006-50230 Workers Comp Insurance 7,459.69 8,800.00 8,800.00 9,200.00 400.00101-1006-50240 Social Security-Medicare 4.65 0.00 0.00 0.00 0.00101-1006-50241 Social Security-FICA 1006 - Finance Totals:684,806.55 866,500.00 898,160.00 874,500.00 -23,660.00 1007 - Central Services 138,915.68 120,000.00 120,000.00 140,000.00 20,000.00101-1007-50109 Vacation & Sick Leave Buy Back 0.00 290,000.00 57,280.00 340,000.00 282,720.00101-1007-50115 Contingency for Stafffing 0.00 0.00 0.00 711,900.00 711,900.00101-1007-50117 PERS - Unfunded Pension Liability 1,947.27 0.00 0.00 0.00 0.00101-1007-50240 Social Security-Medicare 28,092.00 26,000.00 26,000.00 30,000.00 4,000.00101-1007-50243 Employer Contrib Retiree Med PERS 1007 - Central Services Totals:168,954.95 436,000.00 203,280.00 1,221,900.00 1,018,620.00 3001 - Community Resources Administration 349,622.82 340,000.00 360,640.00 421,000.00 60,360.00101-3001-50101 Permanent Full Time 5,825.91 9,400.00 0.00 0.00 0.00101-3001-50102 Salaries - Part Time 3,450.00 3,600.00 3,600.00 2,700.00 -900.00101-3001-50110 Commissions & Boards 574.50 800.00 800.00 500.00 -300.00101-3001-50150 Other Compensation 30,404.73 32,400.00 33,910.00 33,800.00 -110.00101-3001-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-3001-50210 PERS-Survivor Benefits 54,267.28 63,700.00 63,700.00 80,100.00 16,400.00101-3001-50221 Medical Insurance 1,094.39 0.00 0.00 0.00 0.00101-3001-50222 Vision Insurance 4,405.05 0.00 0.00 0.00 0.00101-3001-50223 Dental Insurance 360.50 0.00 0.00 0.00 0.00101-3001-50224 Life Insurance 3,109.69 3,200.00 3,200.00 3,900.00 700.00101-3001-50225 Long Term Disability 10,800.00 8,900.00 8,900.00 6,700.00 -2,200.00101-3001-50230 Workers Comp Insurance 5,204.43 5,600.00 5,600.00 6,100.00 500.00101-3001-50240 Social Security-Medicare 472.73 0.00 0.00 0.00 0.00101-3001-50241 Social Security-FICA 3001 - Community Resources Administration Totals:469,592.03 467,700.00 480,450.00 554,900.00 74,450.00 3002 - Wellness Center Operations 225,666.09 233,800.00 240,800.00 207,000.00 -33,800.00101-3002-50101 Permanent Full Time 48,367.79 139,100.00 113,600.00 120,000.00 6,400.00101-3002-50102 Salaries - Part Time 1,377.00 1,500.00 1,500.00 1,200.00 -300.00101-3002-50150 Other Compensation 35,416.29 43,500.00 44,120.00 18,300.00 -25,820.00101-3002-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-3002-50210 PERS-Survivor Benefits 29,667.28 72,800.00 72,800.00 70,100.00 -2,700.00101-3002-50221 Medical Insurance 612.05 0.00 0.00 0.00 0.00101-3002-50222 Vision Insurance 3,528.70 0.00 0.00 0.00 0.00101-3002-50223 Dental Insurance 261.64 0.00 0.00 0.00 0.00101-3002-50224 Life Insurance 2,361.47 2,600.00 2,600.00 2,300.00 -300.00101-3002-50225 Long Term Disability 7,200.00 5,900.00 5,900.00 5,800.00 -100.00101-3002-50230 Workers Comp Insurance 4,056.61 14,000.00 14,000.00 3,000.00 -11,000.00101-3002-50240 Social Security-Medicare 2,998.94 0.00 0.00 0.00 0.00101-3002-50241 Social Security-FICA 3002 - Wellness Center Operations Totals:361,513.86 513,300.00 495,420.00 427,800.00 -67,620.00 CITY OF LA QUINTA CITY-WIDE PAYROLL DETAILS 2018/19 PROPOSED BUDGET 15 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 3003 - Recreation Programs & Special Events 0.00 51,200.00 52,740.00 55,300.00 2,560.00101-3003-50101 Permanent Full Time 50,924.98 34,300.00 34,300.00 99,100.00 64,800.00101-3003-50102 Salaries - Part Time 0.00 500.00 500.00 500.00 0.00101-3003-50150 Other Compensation 0.00 3,300.00 3,400.00 10,200.00 6,800.00101-3003-50200 PERS-City Portion 0.00 100.00 100.00 300.00 200.00101-3003-50210 PERS-Survivor Benefits 0.00 18,200.00 18,200.00 20,100.00 1,900.00101-3003-50221 Medical Insurance 0.00 0.00 0.00 600.00 600.00101-3003-50225 Long Term Disability 4,900.00 8,900.00 8,900.00 1,700.00 -7,200.00101-3003-50230 Workers Comp Insurance 738.75 3,400.00 3,400.00 11,900.00 8,500.00101-3003-50240 Social Security-Medicare 3,157.54 0.00 0.00 0.00 0.00101-3003-50241 Social Security-FICA 3003 - Recreation Programs & Special Events Totals:59,721.27 119,900.00 121,540.00 199,700.00 78,160.00 3005 - Parks Maintenance 232,697.19 268,400.00 285,330.00 294,300.00 8,970.00101-3005-50101 Permanent Full Time 282.69 800.00 800.00 400.00 -400.00101-3005-50105 Salaries - Overtime 4,193.75 4,900.00 4,900.00 4,600.00 -300.00101-3005-50106 Standby 5,889.90 5,200.00 5,200.00 7,000.00 1,800.00101-3005-50107 Standby Overtime 459.00 500.00 500.00 500.00 0.00101-3005-50150 Other Compensation 41,597.62 57,000.00 58,470.00 28,300.00 -30,170.00101-3005-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-3005-50210 PERS-Survivor Benefits 55,538.03 70,900.00 70,900.00 78,100.00 7,200.00101-3005-50221 Medical Insurance 1,049.36 0.00 0.00 0.00 0.00101-3005-50222 Vision Insurance 3,222.18 0.00 0.00 0.00 0.00101-3005-50223 Dental Insurance 259.30 0.00 0.00 0.00 0.00101-3005-50224 Life Insurance 2,314.22 2,900.00 2,900.00 3,200.00 300.00101-3005-50225 Long Term Disability 7,300.00 11,800.00 11,800.00 6,500.00 -5,300.00101-3005-50230 Workers Comp Insurance 3,524.37 3,900.00 3,900.00 4,300.00 400.00101-3005-50240 Social Security-Medicare 3005 - Parks Maintenance Totals:358,327.61 426,400.00 444,800.00 427,300.00 -17,500.00 3007 - Marketing & Community Relations 130,555.07 64,100.00 66,920.00 73,500.00 6,580.00101-3007-50101 Permanent Full Time 842.50 500.00 500.00 500.00 0.00101-3007-50150 Other Compensation 15,280.79 4,200.00 4,330.00 5,100.00 770.00101-3007-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-3007-50210 PERS-Survivor Benefits 13,799.54 18,200.00 18,200.00 20,100.00 1,900.00101-3007-50221 Medical Insurance 321.16 0.00 0.00 0.00 0.00101-3007-50222 Vision Insurance 2,321.50 0.00 0.00 0.00 0.00101-3007-50223 Dental Insurance 129.57 0.00 0.00 0.00 0.00101-3007-50224 Life Insurance 1,352.73 700.00 700.00 800.00 100.00101-3007-50225 Long Term Disability 4,400.00 3,000.00 3,000.00 1,700.00 -1,300.00101-3007-50230 Workers Comp Insurance 1,934.41 1,000.00 1,000.00 1,100.00 100.00101-3007-50240 Social Security-Medicare 3007 - Marketing & Community Relations Totals:170,937.27 91,800.00 94,750.00 102,900.00 8,150.00 3008 - Public Buildings 212,932.24 265,600.00 277,220.00 283,300.00 6,080.00101-3008-50101 Permanent Full Time 3,272.25 3,200.00 3,200.00 3,400.00 200.00101-3008-50106 Standby 1,236.84 1,000.00 1,000.00 1,400.00 400.00101-3008-50107 Standby Overtime 459.00 600.00 600.00 500.00 -100.00101-3008-50150 Other Compensation 28,583.03 41,700.00 42,630.00 24,400.00 -18,230.00101-3008-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-3008-50210 PERS-Survivor Benefits 36,758.18 70,100.00 70,100.00 78,100.00 8,000.00101-3008-50221 Medical Insurance 521.55 0.00 0.00 0.00 0.00101-3008-50222 Vision Insurance 1,564.98 0.00 0.00 0.00 0.00101-3008-50223 Dental Insurance 241.82 0.00 0.00 0.00 0.00101-3008-50224 Life Insurance 2,110.08 2,900.00 2,900.00 3,100.00 200.00101-3008-50225 Long Term Disability 7,200.00 11,800.00 11,800.00 13,100.00 1,300.00101-3008-50230 Workers Comp Insurance 3,292.58 3,800.00 3,800.00 4,100.00 300.00101-3008-50240 Social Security-Medicare 3008 - Public Buildings Totals:298,172.55 400,800.00 413,350.00 411,500.00 -1,850.00 CITY OF LA QUINTA CITY-WIDE PAYROLL DETAILS 2018/19 PROPOSED BUDGET 16 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 6001 - Design & Development Administration 552,253.70 613,900.00 617,950.00 578,000.00 -39,950.00101-6001-50101 Permanent Full Time 7,340.00 11,400.00 11,400.00 10,500.00 -900.00101-6001-50110 Commissions & Boards 459.00 500.00 500.00 500.00 0.00101-6001-50150 Other Compensation 96,719.58 105,000.00 105,320.00 45,100.00 -60,220.00101-6001-50200 PERS-City Portion 0.00 200.00 200.00 300.00 100.00101-6001-50210 PERS-Survivor Benefits 76,258.44 154,600.00 154,600.00 170,200.00 15,600.00101-6001-50221 Medical Insurance 1,381.67 0.00 0.00 0.00 0.00101-6001-50222 Vision Insurance 9,186.20 0.00 0.00 0.00 0.00101-6001-50223 Dental Insurance 555.23 0.00 0.00 0.00 0.00101-6001-50224 Life Insurance 4,551.82 5,600.00 5,600.00 5,800.00 200.00101-6001-50225 Long Term Disability 17,800.00 19,200.00 19,200.00 14,100.00 -5,100.00101-6001-50230 Workers Comp Insurance 8,208.73 8,900.00 8,900.00 8,400.00 -500.00101-6001-50240 Social Security-Medicare 347.20 0.00 0.00 0.00 0.00101-6001-50241 Social Security-FICA 3,442.50 3,600.00 3,600.00 0.00 -3,600.00101-6001-50250 Vehicle Reimbursement 0.00 0.00 2,000.00 0.00 -2,000.00101-6001-50300 Employee Recognition 6001 - Design & Development Administration Totals:778,504.07 922,900.00 929,270.00 832,900.00 -96,370.00 6002 - Planning 264,563.71 271,500.00 281,750.00 282,700.00 950.00101-6002-50101 Permanent Full Time 459.00 500.00 500.00 500.00 0.00101-6002-50150 Other Compensation 30,266.97 18,500.00 19,310.00 20,300.00 990.00101-6002-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-6002-50210 PERS-Survivor Benefits 2,295.00 2,400.00 2,400.00 2,400.00 0.00101-6002-50215 Other Fringe Benefits 23,239.82 54,600.00 54,600.00 60,100.00 5,500.00101-6002-50221 Medical Insurance 412.17 0.00 0.00 0.00 0.00101-6002-50222 Vision Insurance 1,189.80 0.00 0.00 0.00 0.00101-6002-50223 Dental Insurance 173.43 0.00 0.00 0.00 0.00101-6002-50224 Life Insurance 2,299.13 3,100.00 3,100.00 3,100.00 0.00101-6002-50225 Long Term Disability 9,300.00 8,900.00 8,900.00 5,000.00 -3,900.00101-6002-50230 Workers Comp Insurance 3,911.07 4,100.00 4,100.00 4,100.00 0.00101-6002-50240 Social Security-Medicare 6002 - Planning Totals:338,110.10 363,700.00 374,760.00 378,300.00 3,540.00 6003 - Building 301,003.01 309,100.00 312,810.00 373,300.00 60,490.00101-6003-50101 Permanent Full Time 0.00 67,200.00 67,200.00 0.00 -67,200.00101-6003-50102 Salaries - Part Time 1,836.00 2,000.00 2,000.00 2,400.00 400.00101-6003-50150 Other Compensation 47,247.08 56,800.00 57,540.00 28,700.00 -28,840.00101-6003-50200 PERS-City Portion 0.00 100.00 100.00 200.00 100.00101-6003-50210 PERS-Survivor Benefits 61,109.61 72,800.00 72,800.00 100,100.00 27,300.00101-6003-50221 Medical Insurance 787.14 0.00 0.00 0.00 0.00101-6003-50222 Vision Insurance 4,135.82 0.00 0.00 0.00 0.00101-6003-50223 Dental Insurance 261.64 0.00 0.00 0.00 0.00101-6003-50224 Life Insurance 3,024.71 3,300.00 3,300.00 4,000.00 700.00101-6003-50225 Long Term Disability 9,600.00 11,800.00 11,800.00 8,300.00 -3,500.00101-6003-50230 Workers Comp Insurance 4,364.41 4,500.00 4,500.00 5,500.00 1,000.00101-6003-50240 Social Security-Medicare 0.00 0.00 4,000.00 0.00 -4,000.00101-6003-50300 Employee Recognition 6003 - Building Totals:433,369.42 527,600.00 536,050.00 522,500.00 -13,550.00 6004 - Code Compliance/Animal Control 375,406.35 471,400.00 465,540.00 478,600.00 13,060.00101-6004-50101 Permanent Full Time 3,944.56 4,400.00 4,400.00 4,900.00 500.00101-6004-50105 Salaries - Overtime 77,538.93 98,700.00 100,140.00 47,400.00 -52,740.00101-6004-50200 PERS-City Portion 0.00 200.00 200.00 200.00 0.00101-6004-50210 PERS-Survivor Benefits 64,137.30 127,300.00 127,300.00 140,200.00 12,900.00101-6004-50221 Medical Insurance 1,041.48 0.00 0.00 0.00 0.00101-6004-50222 Vision Insurance 4,389.18 0.00 0.00 0.00 0.00101-6004-50223 Dental Insurance 375.36 0.00 0.00 0.00 0.00101-6004-50224 Life Insurance 3,931.38 5,100.00 5,100.00 5,200.00 100.00101-6004-50225 Long Term Disability 12,000.00 17,700.00 17,700.00 11,600.00 -6,100.00101-6004-50230 Workers Comp Insurance 5,860.78 6,900.00 6,900.00 7,000.00 100.00101-6004-50240 Social Security-Medicare 20,000.00 0.00 8,000.00 0.00 -8,000.00101-6004-50300 Employee Recognition 6004 - Code Compliance/Animal Control Totals:568,625.32 731,700.00 735,280.00 695,100.00 -40,180.00 CITY OF LA QUINTA CITY-WIDE PAYROLL DETAILS 2018/19 PROPOSED BUDGET 17 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 6006 - The Hub 348,973.73 435,500.00 449,670.00 365,700.00 -83,970.00101-6006-50101 Permanent Full Time 3,967.42 55,000.00 55,000.00 93,000.00 38,000.00101-6006-50102 Salaries - Part Time 61,236.24 79,300.00 80,990.00 32,000.00 -48,990.00101-6006-50200 PERS-City Portion 0.00 200.00 200.00 200.00 0.00101-6006-50210 PERS-Survivor Benefits 65,968.73 118,200.00 118,200.00 110,100.00 -8,100.00101-6006-50221 Medical Insurance 3,639.17 4,800.00 4,800.00 4,000.00 -800.00101-6006-50225 Long Term Disability 11,300.00 16,200.00 16,200.00 9,200.00 -7,000.00101-6006-50230 Workers Comp Insurance 5,125.64 6,400.00 6,400.00 5,300.00 -1,100.00101-6006-50240 Social Security-Medicare 6006 - The Hub Totals:500,210.93 715,600.00 731,460.00 619,500.00 -111,960.00 7002 - Public Works Development Services 221,007.68 224,500.00 227,340.00 323,100.00 95,760.00101-7002-50101 Permanent Full Time 459.00 500.00 500.00 500.00 0.00101-7002-50150 Other Compensation 47,952.54 58,900.00 59,190.00 31,100.00 -28,090.00101-7002-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-7002-50210 PERS-Survivor Benefits 23,121.21 36,400.00 36,400.00 60,100.00 23,700.00101-7002-50221 Medical Insurance 297.18 0.00 0.00 0.00 0.00101-7002-50222 Vision Insurance 2,046.22 0.00 0.00 0.00 0.00101-7002-50223 Dental Insurance 130.82 0.00 0.00 0.00 0.00101-7002-50224 Life Insurance 1,855.90 2,100.00 2,100.00 3,000.00 900.00101-7002-50225 Long Term Disability 6,800.00 5,900.00 5,900.00 5,000.00 -900.00101-7002-50230 Workers Comp Insurance 3,295.72 3,300.00 3,300.00 4,700.00 1,400.00101-7002-50240 Social Security-Medicare 2,295.00 2,400.00 2,400.00 2,400.00 0.00101-7002-50250 Vehicle Reimbursement 4,000.00 0.00 0.00 0.00 0.00101-7002-50300 Employee Recognition 7002 - Public Works Development Services Totals:313,261.27 334,100.00 337,230.00 430,000.00 92,770.00 7006 - Engineering Services 382,487.49 426,200.00 436,560.00 517,300.00 80,740.00101-7006-50101 Permanent Full Time 1,262.98 2,000.00 2,000.00 5,300.00 3,300.00101-7006-50105 Salaries - Overtime 17,409.00 19,200.00 19,200.00 21,100.00 1,900.00101-7006-50106 Standby 3,719.79 4,300.00 4,300.00 0.00 -4,300.00101-7006-50107 Standby Overtime 1,277.00 1,500.00 1,500.00 2,000.00 500.00101-7006-50150 Other Compensation 71,153.15 89,600.00 90,460.00 46,100.00 -44,360.00101-7006-50200 PERS-City Portion 0.00 200.00 200.00 200.00 0.00101-7006-50210 PERS-Survivor Benefits 57,084.05 90,900.00 90,900.00 140,200.00 49,300.00101-7006-50221 Medical Insurance 771.65 0.00 0.00 0.00 0.00101-7006-50222 Vision Insurance 4,977.95 0.00 0.00 0.00 0.00101-7006-50223 Dental Insurance 295.25 0.00 0.00 0.00 0.00101-7006-50224 Life Insurance 3,451.10 4,100.00 4,100.00 5,600.00 1,500.00101-7006-50225 Long Term Disability 13,100.00 14,800.00 14,800.00 11,600.00 -3,200.00101-7006-50230 Workers Comp Insurance 5,932.07 6,200.00 6,200.00 7,600.00 1,400.00101-7006-50240 Social Security-Medicare 2,295.00 2,400.00 2,400.00 0.00 -2,400.00101-7006-50250 Vehicle Reimbursement 4,000.00 0.00 0.00 0.00 0.00101-7006-50300 Employee Recognition 7006 - Engineering Services Totals:569,216.48 661,400.00 672,620.00 757,000.00 84,380.00 101 - GENERAL FUND Totals:7,428,221.31 9,094,100.00 9,030,510.00 10,065,100.00 1,034,590.00 201 - GAS TAX FUND 7003 - Streets 572,750.34 485,900.00 492,510.00 468,800.00 -23,710.00201-7003-50101 Permanent Full Time 858.00 900.00 900.00 1,000.00 100.00201-7003-50105 Salaries - Overtime 12,477.32 11,800.00 11,800.00 9,500.00 -2,300.00201-7003-50106 Standby 9,297.78 8,300.00 8,300.00 6,500.00 -1,800.00201-7003-50107 Standby Overtime 108,720.38 117,100.00 117,730.00 44,800.00 -72,930.00201-7003-50200 PERS-City Portion 0.00 300.00 300.00 200.00 -100.00201-7003-50210 PERS-Survivor Benefits 135,413.20 150,000.00 150,000.00 165,200.00 15,200.00201-7003-50221 Medical Insurance 2,488.10 0.00 0.00 0.00 0.00201-7003-50222 Vision Insurance 10,852.39 0.00 0.00 0.00 0.00201-7003-50223 Dental Insurance 661.47 0.00 0.00 0.00 0.00201-7003-50224 Life Insurance 5,691.42 5,300.00 5,300.00 5,100.00 -200.00201-7003-50225 Long Term Disability 18,500.00 30,200.00 30,200.00 7,100.00 -23,100.00201-7003-50230 Workers Comp Insurance 7,786.41 7,100.00 7,100.00 6,800.00 -300.00201-7003-50240 Social Security-Medicare 7003 - Streets Totals:885,496.81 816,900.00 824,140.00 715,000.00 -109,140.00 201 - GAS TAX FUND Totals:885,496.81 816,900.00 824,140.00 715,000.00 -109,140.00 CITY OF LA QUINTA CITY-WIDE PAYROLL DETAILS 2018/19 PROPOSED BUDGET 18 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 215 - LIGHTING & LANDSCAPING FUND 7004 - Lighting & Landscaping 65,752.32 139,200.00 147,230.00 152,700.00 5,470.00215-7004-50101 Permanent Full Time 0.00 100.00 100.00 0.00 -100.00215-7004-50105 Salaries - Overtime 1,779.50 3,500.00 3,500.00 4,100.00 600.00215-7004-50106 Standby 803.21 3,100.00 3,100.00 2,800.00 -300.00215-7004-50107 Standby Overtime 12,114.19 20,900.00 21,490.00 12,900.00 -8,590.00215-7004-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00215-7004-50210 PERS-Survivor Benefits 16,928.79 50,000.00 50,000.00 55,100.00 5,100.00215-7004-50221 Medical Insurance 253.74 0.00 0.00 0.00 0.00215-7004-50222 Vision Insurance 956.01 0.00 0.00 0.00 0.00215-7004-50223 Dental Insurance 81.69 0.00 0.00 0.00 0.00215-7004-50224 Life Insurance 602.63 1,500.00 1,500.00 1,700.00 200.00215-7004-50225 Long Term Disability 3,400.00 7,100.00 7,100.00 3,800.00 -3,300.00215-7004-50230 Workers Comp Insurance 990.76 2,000.00 2,000.00 2,300.00 300.00215-7004-50240 Social Security-Medicare 7004 - Lighting & Landscaping Totals:103,662.84 227,500.00 236,120.00 235,500.00 -620.00 215 - LIGHTING & LANDSCAPING FUND Totals:103,662.84 227,500.00 236,120.00 235,500.00 -620.00 241 - HOUSING AUTHORITY 9101 - Housing Authority - Admin 29,810.04 63,400.00 54,170.00 136,300.00 82,130.00241-9101-50101 Permanent Full Time 750.00 3,000.00 3,000.00 3,000.00 0.00241-9101-50110 Commissions & Boards 216.00 600.00 600.00 300.00 -300.00241-9101-50150 Other Compensation 6,543.79 11,900.00 11,950.00 9,200.00 -2,750.00241-9101-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00241-9101-50210 PERS-Survivor Benefits 4,137.25 18,200.00 18,200.00 31,100.00 12,900.00241-9101-50221 Medical Insurance 56.06 0.00 0.00 0.00 0.00241-9101-50222 Vision Insurance 256.60 0.00 0.00 0.00 0.00241-9101-50223 Dental Insurance 29.95 0.00 0.00 0.00 0.00241-9101-50224 Life Insurance 291.75 700.00 700.00 3,200.00 2,500.00241-9101-50225 Long Term Disability 1,200.00 3,000.00 3,000.00 2,600.00 -400.00241-9101-50230 Workers Comp Insurance 450.01 1,100.00 1,100.00 2,100.00 1,000.00241-9101-50240 Social Security-Medicare 68.20 0.00 0.00 0.00 0.00241-9101-50241 Social Security-FICA 9101 - Housing Authority - Admin Totals:43,809.65 102,000.00 92,820.00 187,900.00 95,080.00 241 - HOUSING AUTHORITY Totals:43,809.65 102,000.00 92,820.00 187,900.00 95,080.00 502 - INFORMATION TECHNOLOGY 0000 - Undesignated 606.91 47,000.00 49,820.00 50,400.00 580.00502-0000-50101 Permanent Full Time 0.00 300.00 300.00 300.00 0.00502-0000-50150 Other Compensation 61.36 12,300.00 12,580.00 5,400.00 -7,180.00502-0000-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00502-0000-50210 PERS-Survivor Benefits 104.91 9,100.00 9,100.00 10,100.00 1,000.00502-0000-50221 Medical Insurance 1.33 0.00 0.00 0.00 0.00502-0000-50222 Vision Insurance 11.51 0.00 0.00 0.00 0.00502-0000-50223 Dental Insurance 0.50 0.00 0.00 0.00 0.00502-0000-50224 Life Insurance 6.54 500.00 500.00 600.00 100.00502-0000-50225 Long Term Disability 8.80 700.00 700.00 800.00 100.00502-0000-50240 Social Security-Medicare 0000 - Undesignated Totals:801.86 70,000.00 73,100.00 67,700.00 -5,400.00 502 - INFORMATION TECHNOLOGY Totals:801.86 70,000.00 73,100.00 67,700.00 -5,400.00 504 - INSURANCE FUND 1010 - Insurance 34,240.90 64,700.00 66,640.00 68,200.00 1,560.00504-1010-50101 Permanent Full Time 0.00 500.00 500.00 200.00 -300.00504-1010-50150 Other Compensation 7,318.66 17,000.00 17,600.00 7,300.00 -10,300.00504-1010-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00504-1010-50210 PERS-Survivor Benefits 6,955.62 13,600.00 13,600.00 15,100.00 1,500.00504-1010-50221 Medical Insurance 361.74 1,400.00 1,400.00 1,500.00 100.00504-1010-50225 Long Term Disability CITY OF LA QUINTA CITY-WIDE PAYROLL DETAILS 2018/19 PROPOSED BUDGET 19 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1,000.00 0.00 0.00 0.00 0.00504-1010-50230 Workers Comp Insurance 496.33 900.00 900.00 1,000.00 100.00504-1010-50240 Social Security-Medicare 1010 - Insurance Totals:50,373.25 98,200.00 100,740.00 93,400.00 -7,340.00 504 - INSURANCE FUND Totals:50,373.25 98,200.00 100,740.00 93,400.00 -7,340.00 601 - SILVERROCK RESORT 0000 - Undesignated 33,848.05 28,200.00 30,080.00 31,200.00 1,120.00601-0000-50101 Permanent Full Time 7,361.61 7,400.00 7,590.00 3,400.00 -4,190.00601-0000-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00601-0000-50210 PERS-Survivor Benefits 3,766.77 3,600.00 3,600.00 4,100.00 500.00601-0000-50221 Medical Insurance 369.33 0.00 0.00 0.00 0.00601-0000-50223 Dental Insurance 40.61 0.00 0.00 0.00 0.00601-0000-50224 Life Insurance 238.12 300.00 300.00 400.00 100.00601-0000-50225 Long Term Disability 1,000.00 0.00 0.00 0.00 0.00601-0000-50230 Workers Comp Insurance 490.82 400.00 400.00 500.00 100.00601-0000-50240 Social Security-Medicare 0000 - Undesignated Totals:47,115.31 40,000.00 42,070.00 39,700.00 -2,370.00 601 - SILVERROCK RESORT Totals:47,115.31 40,000.00 42,070.00 39,700.00 -2,370.00 760 - SUPPLEMENTAL PENSION PLAN 0000 - Undesignated 12,832.86 0.00 0.00 0.00 0.00760-0000-50199 Annual PARS Contribution 0000 - Undesignated Totals:12,832.86 0.00 0.00 0.00 0.00 760 - SUPPLEMENTAL PENSION PLAN Totals:12,832.86 0.00 0.00 0.00 0.00 SALARY & BENEFITS TOTAL 8,572,313.89 10,448,700.00 10,399,500.00 11,404,300.00 1,004,800.00 CITY OF LA QUINTA CITY-WIDE PAYROLL DETAILS 2018/19 PROPOSED BUDGET 20 THIS PAGE INTENTIONALLY LEFT BLANK 21 2016/17 Actual Revenue 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 Tax Revenues 34,394,468.80 37,364,100.00 39,664,100.00 41,659,000.00 1,994,900.00 Licenses & Permits 1,118,912.10 1,257,700.00 1,299,700.00 1,205,900.00 -93,800.00 Intergovernmental 14,859,875.58 7,215,000.00 7,265,000.00 7,045,600.00 -219,400.00 Charges for Services 1,021,296.11 1,258,200.00 1,292,200.00 993,200.00 -299,000.00 Fines, Forfeitures & Abatements 348,344.70 246,000.00 266,000.00 275,500.00 9,500.00 Use of Money & Property 360,067.95 530,000.00 400,000.00 470,000.00 70,000.00 Miscellaneous 570,595.68 490,200.00 510,200.00 515,200.00 5,000.00 Transfers In 9,502.95 190,400.00 190,400.00 0.00 -190,400.00 General Fund Revenue 52,683,063.87 48,551,600.00 50,887,600.00 52,164,400.00 1,276,800.00 CITY OF LA QUINTA GENERAL FUND HISTORICAL REVENUE SUMMARY 2018/19 PROPOSED BUDGET 22 2016/17 Actual Revenues 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 101 - GENERAL FUND 0000 - Undesignated 310 - Tax Revenues 2,186,077.61 2,222,100.00 2,222,100.00 2,261,000.00 38,900.00101-0000-40310 Property Tax Revenue 4,969,009.81 4,419,000.00 4,419,000.00 4,500,000.00 81,000.00101-0000-40311 No-Low City Property Tax 2,082,693.73 1,938,000.00 1,938,000.00 1,978,000.00 40,000.00101-0000-40315 RPTTF Pass Through 8,597,655.49 8,776,100.00 8,776,100.00 8,900,000.00 123,900.00101-0000-41320 State Sales Tax 1,462,649.75 5,700,000.00 8,000,000.00 8,455,000.00 455,000.00101-0000-41326 Measure G Sales Tax 585,333.35 531,000.00 531,000.00 550,000.00 19,000.00101-0000-41327 Document Transfer Tax 6,426,594.01 6,046,900.00 6,046,900.00 6,400,000.00 353,100.00101-0000-41400 TOT - Hotels 2,383,229.26 2,065,000.00 2,065,000.00 2,400,000.00 335,000.00101-0000-41401 TOT - Short Term Vac. Rentals 123,360.49 45,000.00 45,000.00 110,000.00 65,000.00101-0000-41402 TOT - Bed and Breakfast 0.00 360,000.00 360,000.00 360,000.00 0.00101-0000-41416 TOT - Resort Fees 663,060.76 644,000.00 644,000.00 650,000.00 6,000.00101-0000-41505 Franchise Taxes - Burrtec 38,801.62 0.00 0.00 0.00 0.00101-0000-41506 Burrtec AB 939 Fee 120,634.61 129,000.00 129,000.00 127,000.00 -2,000.00101-0000-41508 Southern California Gas 602,052.47 580,000.00 580,000.00 590,000.00 10,000.00101-0000-41509 Cable Television Franchise Fee 340,102.70 200,000.00 200,000.00 300,000.00 100,000.00101-0000-41510 Communications Franchise Fees 3,813,213.14 3,708,000.00 3,708,000.00 4,078,000.00 370,000.00101-0000-41800 Property Tax in Lieu of VLF 310 - Tax Revenues Totals:34,394,468.80 37,364,100.00 39,664,100.00 41,659,000.00 1,994,900.00 320 - Licenses & Permits 80,102.00 63,000.00 63,000.00 100,000.00 37,000.00101-0000-41415 STVR Registration Fee 358,943.44 320,000.00 320,000.00 340,000.00 20,000.00101-0000-41600 Business Licenses 1,368.00 0.00 0.00 6,000.00 6,000.00101-0000-41601 Cannabis Delivery License 1,095.00 1,000.00 1,000.00 1,000.00 0.00101-0000-41610 Film Permits 104,776.28 165,600.00 165,600.00 125,000.00 -40,600.00101-0000-42400 Building Permits 51,407.11 103,500.00 103,500.00 50,000.00 -53,500.00101-0000-42401 Plumbing Permits 80,867.16 121,200.00 121,200.00 70,000.00 -51,200.00101-0000-42402 Mechanical Permits 47,294.38 89,700.00 89,700.00 50,000.00 -39,700.00101-0000-42403 Electrical Permits 151,603.31 152,000.00 152,000.00 140,000.00 -12,000.00101-0000-42404 Miscellaneous Permits 10,090.00 10,000.00 10,000.00 10,000.00 0.00101-0000-42405 Garage Sale Permits 160.00 200.00 200.00 200.00 0.00101-0000-42406 Golf Cart Permits 8,675.67 9,600.00 9,600.00 8,000.00 -1,600.00101-0000-42408 Grading Permits 3,354.00 2,500.00 2,500.00 4,000.00 1,500.00101-0000-42410 Driveway Permits 660.00 1,000.00 1,000.00 500.00 -500.00101-0000-42414 Massage Permits 0.00 0.00 14,000.00 30,000.00 16,000.00101-0000-42420 Fire Plan Review Fee 0.00 0.00 5,000.00 12,000.00 7,000.00101-0000-42421 Fire Inspection Fee 1,300.00 2,000.00 2,000.00 2,500.00 500.00101-0000-42430 Transportation Permits 24,914.00 11,700.00 11,700.00 12,500.00 800.00101-0000-42431 Conditional Use Permits 1,600.00 1,500.00 1,500.00 2,800.00 1,300.00101-0000-42433 Minor Use Permit 20,546.00 12,500.00 12,500.00 18,000.00 5,500.00101-0000-42434 Sign Permit 64,278.00 32,400.00 32,400.00 52,000.00 19,600.00101-0000-42435 Site Development Permit 14,589.00 1,500.00 24,500.00 12,100.00 -12,400.00101-0000-42436 Final Landscaping Plans 1,394.25 2,800.00 2,800.00 3,300.00 500.00101-0000-42437 Development Agreement 8,757.50 4,000.00 4,000.00 6,000.00 2,000.00101-0000-42439 Temporary Use Permit 81,137.00 150,000.00 150,000.00 150,000.00 0.00101-0000-43632 Public Works Permits 320 - Licenses & Permits Totals:1,118,912.10 1,257,700.00 1,299,700.00 1,205,900.00 -93,800.00 330 - Intergovernmental 14,609,875.58 6,726,000.00 6,726,000.00 6,957,600.00 231,600.00101-0000-42500 Fire Service Credit 0.00 239,000.00 289,000.00 85,000.00 -204,000.00101-0000-43633 CSA 152 Assessments 250,000.00 250,000.00 250,000.00 3,000.00 -247,000.00101-0000-43650 Contributions from Other Agencies 330 - Intergovernmental Totals:14,859,875.58 7,215,000.00 7,265,000.00 7,045,600.00 -219,400.00 340 - Charges for Services 57,857.54 45,000.00 45,000.00 55,000.00 10,000.00101-0000-42200 Leisure Enrichment 8,585.85 6,000.00 6,000.00 6,000.00 0.00101-0000-42202 Gift Shop 0.00 100.00 0.00 0.00 0.00101-0000-42208 Coffee/Cards-Senior Center 45,079.70 45,500.00 45,500.00 45,500.00 0.00101-0000-42210 Youth Sports 4,589.28 5,000.00 5,000.00 6,000.00 1,000.00101-0000-42211 Adult Sports 41,902.00 40,000.00 40,000.00 30,000.00 -10,000.00101-0000-42212 Facility Rental 1,086.30 14,000.00 14,000.00 20,000.00 6,000.00101-0000-42213 Special Event 54,625.85 45,000.00 45,000.00 45,000.00 0.00101-0000-42214 Wellness Center Leisure Enrichment CITY OF LA QUINTA GENERAL FUND HISTORICAL REVENUE DETAILS 2018/19 PROPOSED BUDGET 23 2016/17 Actual Revenues 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 0.00 34,100.00 34,100.00 0.00 -34,100.00101-0000-42215 City Facilities Rental Fee 2,152.00 0.00 0.00 2,000.00 2,000.00101-0000-42216 Senior Center Special Events 125,867.51 85,000.00 85,100.00 100,000.00 14,900.00101-0000-42218 Wellness Center Memberships -38.90 0.00 0.00 0.00 0.00101-0000-42300 Cash Over/Short 33,220.09 25,000.00 25,000.00 25,000.00 0.00101-0000-42301 Miscellaneous Revenue 350.00 200.00 200.00 200.00 0.00101-0000-42303 NSF Charges 8,484.00 0.00 0.00 5,000.00 5,000.00101-0000-42411 Village Use Permit 1,796.00 0.00 0.00 2,000.00 2,000.00101-0000-42412 Minor Adjustment, Plan Checks 13,338.00 7,600.00 17,600.00 8,200.00 -9,400.00101-0000-42415 Tentative Tract Map 0.00 0.00 4,000.00 6,000.00 2,000.00101-0000-42416 Digitization/Records Management 2,100.00 1,200.00 1,200.00 1,200.00 0.00101-0000-42417 Modification by Applicant 1,500.00 1,500.00 1,500.00 1,500.00 0.00101-0000-42440 Appeals - Planning Commission 4,068.00 8,700.00 18,700.00 9,200.00 -9,500.00101-0000-42443 Zone Change 5,629.00 3,700.00 3,700.00 4,300.00 600.00101-0000-42445 Environmental Assessment 0.00 9,700.00 19,700.00 10,200.00 -9,500.00101-0000-42446 General Plan Amendment 4,480.00 3,000.00 3,000.00 4,500.00 1,500.00101-0000-42447 Home Occupations 12,333.00 13,400.00 13,400.00 5,000.00 -8,400.00101-0000-42448 Parcel Map 13,310.30 10,000.00 10,000.00 0.00 -10,000.00101-0000-42451 Specific Plan 0.00 1,500.00 1,500.00 0.00 -1,500.00101-0000-42453 Zoning Letters 438,638.13 552,000.00 552,000.00 425,000.00 -127,000.00101-0000-42600 Building Plan Check Fees 0.00 0.00 0.00 300.00 300.00101-0000-42610 SMIP Fees 181.80 0.00 0.00 300.00 300.00101-0000-42615 CBSC Administrative Fees 139,392.83 300,000.00 300,000.00 175,000.00 -125,000.00101-0000-42810 Public Works Dev. Plan Check Fee 767.83 1,000.00 1,000.00 800.00 -200.00101-0000-43631 CVMSHCP Admin Fee 340 - Charges for Services Totals:1,021,296.11 1,258,200.00 1,292,200.00 993,200.00 -299,000.00 350 - Fines, Forfeitures & Abatements 17,334.00 18,000.00 18,000.00 18,000.00 0.00101-0000-42700 Administrative Citations 37,849.13 9,000.00 9,000.00 20,000.00 11,000.00101-0000-42701 Lot Abatement 19,779.55 35,000.00 35,000.00 15,000.00 -20,000.00101-0000-42702 Vehicle Abatement 86,997.00 70,000.00 70,000.00 70,000.00 0.00101-0000-42703 Vehicle Impound Fee 123,257.44 70,000.00 70,000.00 90,000.00 20,000.00101-0000-42705 Motor Vehicle Code Fines 46,086.02 40,000.00 40,000.00 37,000.00 -3,000.00101-0000-42706 Parking Violations 10,064.56 4,000.00 24,000.00 16,000.00 -8,000.00101-0000-42707 Misc Fines 6,977.00 0.00 0.00 6,500.00 6,500.00101-0000-42708 Graffiti Removal 0.00 0.00 0.00 3,000.00 3,000.00101-0000-42709 False Alarm Fees - Police 350 - Fines, Forfeitures & Abatements Totals:348,344.70 246,000.00 266,000.00 275,500.00 9,500.00 360 - Use of Money & Property 143,436.65 250,000.00 250,000.00 270,000.00 20,000.00101-0000-41900 Allocated Interest -8,850.00 0.00 0.00 0.00 0.00101-0000-41910 Gain or Loss 112,476.96 50,000.00 50,000.00 60,000.00 10,000.00101-0000-41915 Non-Allocated Interest 9,600.00 140,000.00 10,000.00 10,000.00 0.00101-0000-42111 Rental Income 103,404.34 90,000.00 90,000.00 130,000.00 40,000.00101-0000-42120 Lease Revenue 360 - Use of Money & Property Totals:360,067.95 530,000.00 400,000.00 470,000.00 70,000.00 370 - Miscellaneous 420,684.94 365,000.00 365,000.00 375,000.00 10,000.00101-0000-41410 TOT - Mitigation Measures 17,411.69 8,000.00 8,000.00 15,000.00 7,000.00101-0000-41504 AMR Compliance 50,837.50 103,000.00 103,000.00 105,000.00 2,000.00101-0000-41507 Burrtec Admin Cost Reimbursement 500.00 0.00 0.00 0.00 0.00101-0000-41920 Memorial Tree Revenue 948.62 0.00 0.00 0.00 0.00101-0000-42000 Insurance Recoveries 0.00 2,000.00 2,000.00 0.00 -2,000.00101-0000-42100 Advertising Co-Op Revenue 4,109.10 2,000.00 2,000.00 0.00 -2,000.00101-0000-42130 SB 1186 Revenue 147.80 200.00 200.00 100.00 -100.00101-0000-42140 Sales of Publications & Materials 69,991.43 0.00 20,000.00 10,000.00 -10,000.00101-0000-42305 Miscellaneous Reimbursements 6,004.35 10,000.00 10,000.00 10,000.00 0.00101-0000-43505 Credit Card Fee Revenue -39.75 0.00 0.00 100.00 100.00101-0000-45000 Sale of Other Assets 370 - Miscellaneous Totals:570,595.68 490,200.00 510,200.00 515,200.00 5,000.00 CITY OF LA QUINTA GENERAL FUND HISTORICAL REVENUE DETAILS 2018/19 PROPOSED BUDGET 24 2016/17 Actual Revenues 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 380 - Transfers In 9,502.95 190,400.00 190,400.00 0.00 -190,400.00101-0000-49500 Transfers In 380 - Transfers In Totals:9,502.95 190,400.00 190,400.00 0.00 -190,400.00 0000 - Undesignated Totals:52,683,063.87 48,551,600.00 50,887,600.00 52,164,400.00 1,276,800.00 101 - GENERAL FUND Totals:52,683,063.87 48,551,600.00 50,887,600.00 52,164,400.00 1,276,800.00 CITY OF LA QUINTA GENERAL FUND HISTORICAL REVENUE DETAILS 2018/19 PROPOSED BUDGET 25 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1001 - City Council Salaries and Benefits 145,185.61 144,000.00 144,000.00 144,000.00 0.00101-1001-50108 Salaries - Council Members 2,335.00 2,400.00 2,400.00 2,400.00 0.00101-1001-50150 Other Compensation 24,267.44 20,000.00 20,000.00 10,300.00 -9,700.00101-1001-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-1001-50210 PERS-Survivor Benefits 58,919.44 90,900.00 90,900.00 100,100.00 9,200.00101-1001-50221 Medical Insurance 774.91 0.00 0.00 0.00 0.00101-1001-50222 Vision Insurance 4,337.26 0.00 0.00 0.00 0.00101-1001-50223 Dental Insurance 831.86 0.00 0.00 0.00 0.00101-1001-50224 Life Insurance 0.00 1,600.00 1,600.00 1,600.00 0.00101-1001-50225 Long Term Disability 4,500.00 14,800.00 14,800.00 8,300.00 -6,500.00101-1001-50230 Workers Comp Insurance 2,120.10 5,600.00 5,600.00 5,600.00 0.00101-1001-50240 Social Security-Medicare 2,037.41 0.00 0.00 0.00 0.00101-1001-50241 Social Security-FICA 50 - Salaries and Benefits Totals:245,309.03 279,400.00 279,400.00 272,400.00 -7,000.00 Maintenance & Operations 0.00 8,000.00 8,000.00 8,000.00 0.00101-1001-60137 Community Special Events 25,122.06 25,000.00 25,000.00 25,000.00 0.00101-1001-60320 Travel & Training 182.57 1,000.00 1,000.00 1,000.00 0.00101-1001-60400 Office Supplies 319.68 600.00 600.00 600.00 0.00101-1001-60410 Printing 334.72 10,000.00 10,000.00 1,000.00 -9,000.00101-1001-60420 Operating Supplies 1,000.00 0.00 0.00 0.00 0.00101-1001-60510 Contingency 62 - Maintenance & Operations Totals:26,959.03 44,600.00 44,600.00 35,600.00 -9,000.00 1001 - City Council Totals:272,268.06 324,000.00 324,000.00 308,000.00 -16,000.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 26 Department : 1001 - City Council Community Special Events 8,000.00101-1001-60137 Annual Open House State of the City Address Travel & Training 25,000.00101-1001-60320 League Annual Conference League - Legislative Action Days Mayor's Cup Council Meeting Expenses Public Safety Awards Ceremony Miscellaneous Events as needed Printing 600.00101-1001-60410 Operating Supplies 1,000.00101-1001-60420 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 27 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1002 - City Manager 845,572.30 769,000.00 807,460.00 867,500.00 60,040.00 Salaries and Benefits 507,337.29 541,400.00 550,960.00 619,300.00 68,340.00 Contract Services 225,658.68 117,000.00 145,900.00 117,000.00 (28,900.00) Maintenance & Operations 81,176.33 81,200.00 81,200.00 94,500.00 13,300.00 Internal Service Charges 31,400.00 29,400.00 29,400.00 36,700.00 7,300.00 3007 - Marketing & Community Relations 830,897.63 1,170,400.00 1,173,350.00 1,199,800.00 26,450.00 Salaries and Benefits 170,937.27 91,800.00 94,750.00 102,900.00 8,150.00 Contract Services 282,830.83 272,500.00 272,500.00 287,500.00 15,000.00 Maintenance & Operations 360,629.53 797,700.00 797,700.00 797,700.00 0.00 Internal Service Charges 16,500.00 8,400.00 8,400.00 11,700.00 3,300.00 CITY MANAGER TOTAL 1,676,469.93 1,939,400.00 1,980,810.00 2,067,300.00 86,490.00 845,572.30 769,000.00 807,460.00 867,500.00 60,040.00 507,337.29 541,400.00 550,960.00 619,300.00 68,340.00 225,658.68 117,000.00 145,900.00 117,000.00 (28,900.00) 81,176.33 81,200.00 81,200.00 94,500.00 13,300.00 31,400.00 29,400.00 29,400.00 36,700.00 7,300.00 830,897.63 1,170,400.00 1,173,350.00 1,199,800.00 26,450.00 170,937.27 91,800.00 94,750.00 102,900.00 8,150.00 282,830.83 272,500.00 272,500.00 287,500.00 15,000.00 360,629.53 797,700.00 797,700.00 797,700.00 0.00 16,500.00 8,400.00 8,400.00 11,700.00 3,300.00 1,676,469.93 1,939,400.00 1,980,810.00 2,067,300.00 86,490.00 CITY OF LA QUINTA CITY MANAGER'S OFFICE SUMMARY OF EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 28 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1002 - City Manager Salaries and Benefits 366,492.72 375,800.00 384,690.00 464,900.00 80,210.00101-1002-50101 Permanent Full Time 1,161.00 1,200.00 1,200.00 1,300.00 100.00101-1002-50150 Other Compensation 59,082.84 71,800.00 72,470.00 43,700.00 -28,770.00101-1002-50200 PERS-City Portion 0.00 100.00 100.00 200.00 100.00101-1002-50210 PERS-Survivor Benefits 10,000.00 10,000.00 10,000.00 10,000.00 0.00101-1002-50215 Other Fringe Benefits 46,394.37 63,700.00 63,700.00 83,100.00 19,400.00101-1002-50221 Medical Insurance 803.87 0.00 0.00 0.00 0.00101-1002-50222 Vision Insurance 4,438.88 0.00 0.00 0.00 0.00101-1002-50223 Dental Insurance 312.19 0.00 0.00 0.00 0.00101-1002-50224 Life Insurance 2,591.83 3,000.00 3,000.00 4,000.00 1,000.00101-1002-50225 Long Term Disability 10,600.00 10,300.00 10,300.00 5,300.00 -5,000.00101-1002-50230 Workers Comp Insurance 5,459.59 5,500.00 5,500.00 6,800.00 1,300.00101-1002-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:507,337.29 541,400.00 550,960.00 619,300.00 68,340.00 Contract Services 96,410.04 92,000.00 92,000.00 92,000.00 0.00101-1002-60101 Contract Services - Administrative 128,876.86 25,000.00 53,900.00 25,000.00 -28,900.00101-1002-60103 Professional Services 371.78 0.00 0.00 0.00 0.00101-1002-60108 Technical 60 - Contract Services Totals:225,658.68 117,000.00 145,900.00 117,000.00 -28,900.00 Maintenance & Operations 2,452.00 10,600.00 11,200.00 11,000.00 -200.00101-1002-60320 Travel & Training 0.00 600.00 0.00 0.00 0.00101-1002-60330 Mileage Reimbursement 77,092.48 67,000.00 67,000.00 80,000.00 13,000.00101-1002-60351 Membership Dues 440.57 1,000.00 1,000.00 1,000.00 0.00101-1002-60400 Office Supplies 941.82 1,000.00 1,000.00 500.00 -500.00101-1002-60410 Printing 249.46 1,000.00 1,000.00 2,000.00 1,000.00101-1002-60420 Operating Supplies 62 - Maintenance & Operations Totals:81,176.33 81,200.00 81,200.00 94,500.00 13,300.00 Internal Service Charges 23,600.00 29,400.00 29,400.00 36,700.00 7,300.00101-1002-98110 Information Tech Charges 7,800.00 0.00 0.00 0.00 0.00101-1002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:31,400.00 29,400.00 29,400.00 36,700.00 7,300.00 1002 - City Manager Totals:845,572.30 769,000.00 807,460.00 867,500.00 60,040.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 29 Department : 1002 - City Manager Permanent Full Time 464,900.00101-1002-50101 100% - Management Analyst 100% - Management Specialist 90% - City Manager 50% - Business Analyst 50% - Management Specialist In FY 2018/19, 10% of the City Managers' salary and 50% of both the Business Analyst and Management Specialists salary was allocated to the Housing Fund. Increase due to salary upgrade for Management Specialist and addition of Management Analyst position transfered from The Hub. Contract Services - Administrative 92,000.00101-1002-60101 Lobbying Services City Economist - Economic Development Professional Services 25,000.00101-1002-60103 Career Builder Event Title and Appraisal Services Travel & Training 11,000.00101-1002-60320 League of California Cities (LCC) Regional Meetings & Miscellaneous Training Membership Dues 80,000.00101-1002-60351 International City/County Mgmt Association (ICMA) League of CA Cities (LCC) - Riverside California Cities/Counties Mgmt Foundation (CCMF) Coachella Valley Association of Governments (CVAG) International Council of Shopping Centers (ICSC) National League of Cities (NLC) Southern CA Assoc of Governments (SCAG) Printing 500.00101-1002-60410 Operating Supplies 2,000.00101-1002-60420 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 30 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 3007 - Marketing & Community Relations Salaries and Benefits 130,555.07 64,100.00 66,920.00 73,500.00 6,580.00101-3007-50101 Permanent Full Time 842.50 500.00 500.00 500.00 0.00101-3007-50150 Other Compensation 15,280.79 4,200.00 4,330.00 5,100.00 770.00101-3007-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-3007-50210 PERS-Survivor Benefits 13,799.54 18,200.00 18,200.00 20,100.00 1,900.00101-3007-50221 Medical Insurance 321.16 0.00 0.00 0.00 0.00101-3007-50222 Vision Insurance 2,321.50 0.00 0.00 0.00 0.00101-3007-50223 Dental Insurance 129.57 0.00 0.00 0.00 0.00101-3007-50224 Life Insurance 1,352.73 700.00 700.00 800.00 100.00101-3007-50225 Long Term Disability 4,400.00 3,000.00 3,000.00 1,700.00 -1,300.00101-3007-50230 Workers Comp Insurance 1,934.41 1,000.00 1,000.00 1,100.00 100.00101-3007-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:170,937.27 91,800.00 94,750.00 102,900.00 8,150.00 Contract Services 270,330.83 260,000.00 260,000.00 275,000.00 15,000.00101-3007-60151 GPSCVB 12,500.00 12,500.00 12,500.00 12,500.00 0.00101-3007-60152 Jacqueline Cochran Regional Airport 60 - Contract Services Totals:282,830.83 272,500.00 272,500.00 287,500.00 15,000.00 Maintenance & Operations 1,602.92 4,000.00 4,000.00 4,000.00 0.00101-3007-60320 Travel & Training 225.00 40,600.00 40,600.00 40,600.00 0.00101-3007-60351 Membership Dues 0.00 4,000.00 4,000.00 4,000.00 0.00101-3007-60410 Printing 0.00 1,600.00 1,600.00 1,600.00 0.00101-3007-60420 Operating Supplies 12,486.21 20,000.00 20,000.00 20,000.00 0.00101-3007-60450 Advertising 345,165.40 717,500.00 717,500.00 717,500.00 0.00101-3007-60461 Marketing & Tourism Promotions 1,150.00 10,000.00 10,000.00 10,000.00 0.00101-3007-60462 Media 62 - Maintenance & Operations Totals:360,629.53 797,700.00 797,700.00 797,700.00 0.00 Internal Service Charges 15,700.00 8,400.00 8,400.00 11,700.00 3,300.00101-3007-98110 Information Tech Charges 800.00 0.00 0.00 0.00 0.00101-3007-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:16,500.00 8,400.00 8,400.00 11,700.00 3,300.00 3007 - Marketing & Community Relations Totals:830,897.63 1,170,400.00 1,173,350.00 1,199,800.00 26,450.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 31 Department : 3007 - Marketing & Community Relations Permanent Full Time 73,500.00101-3007-50101 100% - Marketing Management Coordinator Increase in FY 2018/19 salary due to reclassification of Marketing & Events Supervisor to Marketing Management Coordinator. Travel & Training 4,000.00101-3007-60320 Visit CA - Travel Destination Conference CalTravel - Travel Destination Conference Membership Dues 40,600.00101-3007-60351 Amount 30,300.00 300.00 East Valley Coalition (EVC) & Coachella Valley Economic Partnership (CVEP) Other Professional Associations Regional Economic Development Agency (REDC)10,000.00 Printing 4,000.00101-3007-60410 Operating Supplies 1,600.00101-3007-60420 Advertising 20,000.00101-3007-60450 Amount Date Festival 5,000.00 Event Sponsorships 12,000.00 Restaurant Week 3,000.00 Marketing & Tourism Promotions 717,500.00101-3007-60461 Amount Chamber of Commerce Contract 115,000.00 Marketing Contracts 420,000.00 Marketing Efforts and Rebranding 150,000.00 Music Licensing 2,000.00 Palm Springs Life Vision 3,500.00 Photography 16,000.00 Video/Commercials 11,000.00 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 32 THIS PAGE INTENTIONALLY LEFT BLANK 33 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1003 - City Attorney Contract Services 360,685.14 420,000.00 420,000.00 440,000.00 20,000.00101-1003-60153 Attorney 50,201.83 40,000.00 40,000.00 45,000.00 5,000.00101-1003-60154 Attorney/Litigation 60 - Contract Services Totals:410,886.97 460,000.00 460,000.00 485,000.00 25,000.00 1003 - City Attorney Totals:410,886.97 460,000.00 460,000.00 485,000.00 25,000.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 34 THIS PAGE INTENTIONALLY LEFT BLANK 35 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1005 - City Clerk Salaries and Benefits 234,634.21 262,900.00 260,680.00 268,300.00 7,620.00101-1005-50101 Permanent Full Time 27,903.30 26,000.00 26,000.00 28,000.00 2,000.00101-1005-50102 Salaries - Part Time 459.00 500.00 500.00 400.00 -100.00101-1005-50150 Other Compensation 48,880.31 55,400.00 56,860.00 25,900.00 -30,960.00101-1005-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-1005-50210 PERS-Survivor Benefits 33,511.32 68,200.00 68,200.00 73,100.00 4,900.00101-1005-50221 Medical Insurance 674.47 0.00 0.00 0.00 0.00101-1005-50222 Vision Insurance 2,814.15 0.00 0.00 0.00 0.00101-1005-50223 Dental Insurance 275.97 0.00 0.00 0.00 0.00101-1005-50224 Life Insurance 2,180.71 2,900.00 2,900.00 3,100.00 200.00101-1005-50225 Long Term Disability 8,700.00 10,300.00 10,300.00 6,100.00 -4,200.00101-1005-50230 Workers Comp Insurance 3,807.00 4,200.00 4,200.00 4,400.00 200.00101-1005-50240 Social Security-Medicare 1,730.01 0.00 0.00 0.00 0.00101-1005-50241 Social Security-FICA 0.00 0.00 7,000.00 0.00 -7,000.00101-1005-50300 Employee Recognition 50 - Salaries and Benefits Totals:365,570.45 430,500.00 436,740.00 409,400.00 -27,340.00 Contract Services 114,637.82 80,100.00 82,600.00 109,000.00 26,400.00101-1005-60103 Professional Services 6,413.75 0.00 8,400.00 10,000.00 1,600.00101-1005-60125 Temporary Agency Services 60 - Contract Services Totals:121,051.57 80,100.00 91,000.00 119,000.00 28,000.00 Maintenance & Operations 4,782.22 6,400.00 8,300.00 12,000.00 3,700.00101-1005-60320 Travel & Training 1,350.16 700.00 700.00 1,000.00 300.00101-1005-60351 Membership Dues 0.00 300.00 300.00 300.00 0.00101-1005-60352 Subscriptions & Publications 1,425.73 2,000.00 2,000.00 2,000.00 0.00101-1005-60400 Office Supplies 60.54 300.00 300.00 400.00 100.00101-1005-60410 Printing 466.31 500.00 500.00 1,000.00 500.00101-1005-60420 Operating Supplies 3,232.60 2,000.00 4,100.00 4,500.00 400.00101-1005-60450 Advertising 62 - Maintenance & Operations Totals:11,317.56 12,200.00 16,200.00 21,200.00 5,000.00 Internal Service Charges 23,600.00 29,400.00 29,400.00 42,500.00 13,100.00101-1005-98110 Information Tech Charges 6,900.00 0.00 0.00 0.00 0.00101-1005-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:30,500.00 29,400.00 29,400.00 42,500.00 13,100.00 1005 - City Clerk Totals:528,439.58 552,200.00 573,340.00 592,100.00 18,760.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 36 Department : 1005 - City Clerk Permanent Full Time 268,300.00101-1005-50101 100% - Administrative Assistant 100% - Deputy City Clerk 65% - City Clerk (25% Housing, 10% Insurance) 50% - Management Assistant (50% Housing) 50% - Deputy City Clerk (50% Insurance Fund) Salaries - Part Time 28,000.00101-1005-50102 100% - Administrative Technician Part-Time Potential $14,000 savings if unfunded position is approved as requested. Professional Services 109,000.00101-1005-60103 2018 Election Services Municipal Code Text and Online Updates Empire Imaging Service & Support (LaserFiche) Scanning Services For The Record Tech Support (DSS Corp) DigiCert Electronic Signatures Temporary Agency Services 10,000.00101-1005-60125 Potential $10,000 savings if unfunded position is approved as requested. Travel & Training 12,000.00101-1005-60320 Election Law Seminar California City Clerks Assoc Annual Conference & Seminars International Institute of Municipal Clerks Certifications and Training Laserfiche Conference League of California Cities Membership Dues 1,000.00101-1005-60351 California City Clerks Association (CCAC) (4 Employees) National Notary Association (NNA), Errors and Omission Insurance (3) International Institute of Municipal Clerks (IIMC) Membership Subscriptions & Publications 300.00101-1005-60352 Printing 400.00101-1005-60410 Operating Supplies 1,000.00101-1005-60420 Advertising 4,500.00101-1005-60450 Public Hearing Notices CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 37 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1004 - Human Resources 407,779.18 462,900.00 516,590.00 495,650.00 -20,940.00 Salaries and Benefits 236,680.86 263,400.00 294,990.00 308,200.00 13,210.00 Contract Services 96,965.02 99,800.00 101,900.00 69,250.00 -32,650.00 Maintenance & Operations 55,333.30 82,900.00 102,900.00 94,900.00 -8,000.00 Internal Service Charges 18,800.00 16,800.00 16,800.00 23,300.00 6,500.00 2001 - Police 14,451,363.86 15,879,100.00 15,879,100.00 17,114,000.00 1,234,900.00 Contract Services 14,417,358.37 15,830,400.00 15,830,400.00 17,051,000.00 1,220,600.00 Maintenance & Operations 1,401.40 9,700.00 9,700.00 10,000.00 300.00 Utilities 2,504.09 14,000.00 14,000.00 14,000.00 0.00 Internal Service Charges 30,100.00 25,000.00 25,000.00 39,000.00 14,000.00 2002 - Fire 5,816,590.43 6,730,000.00 6,730,000.00 6,957,600.00 227,600.00 Contract Services 5,643,879.97 6,485,500.00 6,485,500.00 6,689,500.00 204,000.00 Maintenance & Operations 64,526.13 101,500.00 76,500.00 76,500.00 0.00 Repair & Maintenance 0.00 0.00 25,000.00 25,000.00 0.00 Utilities 52,804.50 72,000.00 72,000.00 82,000.00 10,000.00 Capital Expenses 3,379.83 15,000.00 15,000.00 15,000.00 0.00 Internal Service Charges 52,000.00 56,000.00 56,000.00 69,600.00 13,600.00 3001 - Community Resources Administration 783,381.65 703,500.00 729,750.00 743,900.00 14,150.00 Salaries and Benefits 469,592.03 467,700.00 480,450.00 554,900.00 74,450.00 Contract Services 48,360.00 60,000.00 73,500.00 65,000.00 -8,500.00 Maintenance & Operations 190,429.62 127,500.00 127,500.00 77,400.00 -50,100.00 Internal Service Charges 75,000.00 48,300.00 48,300.00 46,600.00 -1,700.00 3002 - Wellness Center Operations 522,038.55 679,300.00 661,420.00 647,700.00 -13,720.00 Salaries and Benefits 361,513.86 513,300.00 495,420.00 427,800.00 -67,620.00 Contract Services 88,593.37 87,300.00 87,300.00 99,300.00 12,000.00 Maintenance & Operations 30,080.32 61,900.00 61,900.00 63,500.00 1,600.00 Utilities 1,851.00 0.00 0.00 0.00 0.00 Internal Service Charges 40,000.00 16,800.00 16,800.00 57,100.00 40,300.00 3003 - Recreation Programs & Special Events 129,864.59 365,000.00 366,640.00 529,300.00 162,660.00 Salaries and Benefits 59,721.27 119,900.00 121,540.00 199,700.00 78,160.00 Contract Services 373.46 0.00 0.00 0.00 0.00 Maintenance & Operations 36,769.86 208,300.00 208,300.00 285,300.00 77,000.00 Internal Service Charges 33,000.00 36,800.00 36,800.00 44,300.00 7,500.00 6004 - Code Compliance/Animal Control 911,979.40 1,134,500.00 1,153,080.00 1,156,300.00 3,220.00 Salaries and Benefits 568,625.32 731,700.00 735,280.00 695,100.00 -40,180.00 Contract Services 213,371.01 246,000.00 256,000.00 260,000.00 4,000.00 Maintenance & Operations 22,083.07 25,700.00 30,700.00 38,200.00 7,500.00 Internal Service Charges 107,900.00 131,100.00 131,100.00 163,000.00 31,900.00 COMMUNITY RESOURCES TOTAL 23,022,997.66 25,954,300.00 26,036,580.00 27,644,450.00 1,607,870.00 CITY OF LA QUINTA COMMUNITY RESOURCES SUMMARY OF EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 38 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1004 - Human Resources Salaries and Benefits 138,377.09 153,200.00 162,690.00 177,300.00 14,610.00101-1004-50101 Permanent Full Time 6,133.11 9,400.00 30,800.00 38,300.00 7,500.00101-1004-50102 Salaries - Part Time 20,371.23 25,500.00 26,200.00 15,800.00 -10,400.00101-1004-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-1004-50210 PERS-Survivor Benefits 26,040.53 36,400.00 36,400.00 40,100.00 3,700.00101-1004-50221 Medical Insurance 594.07 0.00 0.00 0.00 0.00101-1004-50222 Vision Insurance 2,802.10 0.00 0.00 0.00 0.00101-1004-50223 Dental Insurance 123.41 0.00 0.00 0.00 0.00101-1004-50224 Life Insurance 1,437.25 1,900.00 1,900.00 2,100.00 200.00101-1004-50225 Long Term Disability 5,700.00 5,900.00 5,900.00 3,400.00 -2,500.00101-1004-50230 Workers Comp Insurance 2,095.49 3,000.00 3,000.00 2,600.00 -400.00101-1004-50240 Social Security-Medicare 380.33 0.00 0.00 0.00 0.00101-1004-50241 Social Security-FICA 32,226.25 25,000.00 25,000.00 25,000.00 0.00101-1004-50244 State Unemployment Insurance 400.00 3,000.00 3,000.00 3,500.00 500.00101-1004-50252 Fitness Membership Reimbursement 50 - Salaries and Benefits Totals:236,680.86 263,400.00 294,990.00 308,200.00 13,210.00 Contract Services 63,597.49 90,000.00 92,100.00 52,750.00 -39,350.00101-1004-60103 Professional Services 27,739.83 9,800.00 9,800.00 16,500.00 6,700.00101-1004-60104 Consultants 5,627.70 0.00 0.00 0.00 0.00101-1004-60125 Temporary Agency Services 60 - Contract Services Totals:96,965.02 99,800.00 101,900.00 69,250.00 -32,650.00 Maintenance & Operations 19,436.50 30,000.00 40,000.00 30,000.00 -10,000.00101-1004-60129 Recruiting/Pre-Employment 6,857.03 10,000.00 10,000.00 10,000.00 0.00101-1004-60320 Travel & Training 136.31 0.00 0.00 0.00 0.00101-1004-60321 Training & Education 11,520.07 20,000.00 30,000.00 30,000.00 0.00101-1004-60322 Training & Education/MOU 6,680.14 7,500.00 7,500.00 9,000.00 1,500.00101-1004-60340 Employee Recognition Awards 4,954.00 5,500.00 5,500.00 6,000.00 500.00101-1004-60351 Membership Dues 218.76 300.00 300.00 300.00 0.00101-1004-60352 Subscriptions & Publications 1,851.42 2,000.00 2,000.00 2,000.00 0.00101-1004-60400 Office Supplies 60.54 600.00 600.00 600.00 0.00101-1004-60410 Printing 1,168.53 1,000.00 1,000.00 1,000.00 0.00101-1004-60420 Operating Supplies 2,450.00 6,000.00 6,000.00 6,000.00 0.00101-1004-60450 Advertising 62 - Maintenance & Operations Totals:55,333.30 82,900.00 102,900.00 94,900.00 -8,000.00 Internal Service Charges 15,700.00 16,800.00 16,800.00 23,300.00 6,500.00101-1004-98110 Information Tech Charges 3,100.00 0.00 0.00 0.00 0.00101-1004-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:18,800.00 16,800.00 16,800.00 23,300.00 6,500.00 1004 - Human Resources Totals:407,779.18 462,900.00 516,590.00 495,650.00 -20,940.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 39 Department : 1004 - Human Resources Permanent Full Time 177,300.00101-1004-50101 100% - Human Resources Analyst 100% - Human Resources Manager Increase in FY 2018/19 reflects one of the Human Resources Analysts position upgraded to a Human Resources Manager. Salaries - Part Time 38,300.00101-1004-50102 100% Part-Time Administrative Technician In FY 2018/19 the Office Assistant is 100% allocated in Human Resources and reclassified as an Administrative Technician. Professional Services 52,750.00101-1004-60103 Leadership Development Municipal Resources - Policy Review 2018/19 decrease to due the completion of Fox Lawson Market Survey. Consultants 16,500.00101-1004-60104 EAP - Wellness Works TASC - Admin Fee CalPERS - Monthly Medical Prem-Admin fees TAG/AMS DOT Random Screenings DMV Medical Exams (Class B) Recruiting/Pre-Employment 30,000.00101-1004-60129 Executive Recruitment Resources Interview Panel Costs Fingerprinting Physicals/Drug Screenings Background Checks Travel & Training 10,000.00101-1004-60320 Bilingual Testing Annual CA Public Employers Labor Relations Assoc. (CalPELRA) Liberty Cassidy Insurance Training Customer Service/Misc. Training Insurance Academy/Educational Forums Employee Recognition Awards 9,000.00101-1004-60340 Membership Dues 6,000.00101-1004-60351 Society of HR Management (SHRM) Professionals in HR Association (PIHRA) International Public Management Association for HR (IPMA-HR), World at Work (WOW) CV Employment Relations Consortium CA Public Employers Labor Relations Assoc. (CalPELRA), and Enganging Local Governent Leaders (ELGL) Subscriptions & Publications 300.00101-1004-60352 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 40 Labor Law Compliance Posters Printing 600.00101-1004-60410 Personnel Forms On-Boarding for New Employees Operating Supplies 1,000.00101-1004-60420 Advertising 6,000.00101-1004-60450 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 41 THIS PAGE INTENTIONALLY LEFT BLANK 42 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 2001 - Police Contract Services 4,309.56 10,000.00 10,000.00 10,000.00 0.00101-2001-60109 LQ Police Volunteers 8,240,424.63 9,130,000.00 9,130,000.00 9,862,000.00 732,000.00101-2001-60161 Sheriff Patrol 165,614.11 217,000.00 217,000.00 258,000.00 41,000.00101-2001-60162 Police Overtime 2,092,206.28 1,993,000.00 1,993,000.00 1,960,000.00 -33,000.00101-2001-60163 Target Team 591,241.20 757,000.00 757,000.00 825,000.00 68,000.00101-2001-60164 Community Services Officer 55,859.02 0.00 0.00 58,000.00 58,000.00101-2001-60165 Special Enforcement/Humana 153,806.04 176,000.00 176,000.00 191,000.00 15,000.00101-2001-60166 Gang Task Force 143,054.61 176,000.00 176,000.00 191,000.00 15,000.00101-2001-60167 Narcotics Task Force 178,851.13 90,000.00 90,000.00 185,000.00 95,000.00101-2001-60168 School Officer 1,121,782.46 1,327,000.00 1,327,000.00 1,435,000.00 108,000.00101-2001-60169 Motor Officer 444,967.16 502,000.00 502,000.00 545,000.00 43,000.00101-2001-60170 Dedicated Sargeant 262,350.40 287,000.00 287,000.00 312,000.00 25,000.00101-2001-60171 Dedicated Lieutenant 461,885.67 490,000.00 490,000.00 510,000.00 20,000.00101-2001-60172 Sheriff - Mileage 0.00 20,000.00 20,000.00 18,000.00 -2,000.00101-2001-60173 Booking Fees 16,760.80 21,400.00 21,400.00 20,000.00 -1,400.00101-2001-60174 Blood/Alcohol Testing 61,454.10 108,000.00 108,000.00 95,000.00 -13,000.00101-2001-60175 Special Enforcement Funds 419,059.20 420,000.00 420,000.00 470,000.00 50,000.00101-2001-60176 Sheriff - Other 0.00 44,000.00 44,000.00 10,000.00 -34,000.00101-2001-60178 COPS Robbery Prevention 0.00 55,000.00 55,000.00 89,000.00 34,000.00101-2001-60179 COPS Burglary/Theft Prevention 3,732.00 7,000.00 7,000.00 7,000.00 0.00101-2001-60193 Sexual Assault Exam Fees 60 - Contract Services Totals:14,417,358.37 15,830,400.00 15,830,400.00 17,051,000.00 1,220,600.00 Maintenance & Operations 1,401.40 9,700.00 9,700.00 10,000.00 300.00101-2001-60420 Operating Supplies 62 - Maintenance & Operations Totals:1,401.40 9,700.00 9,700.00 10,000.00 300.00 Utilities 2,504.09 14,000.00 14,000.00 14,000.00 0.00101-2001-61300 Utilities - Telephone 66 - Utilities Totals:2,504.09 14,000.00 14,000.00 14,000.00 0.00 Internal Service Charges 0.00 5,000.00 5,000.00 7,000.00 2,000.00101-2001-98110 Information Tech Charges 30,100.00 20,000.00 20,000.00 32,000.00 12,000.00101-2001-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:30,100.00 25,000.00 25,000.00 39,000.00 14,000.00 2001 - Police Totals:14,451,363.86 15,879,100.00 15,879,100.00 17,114,000.00 1,234,900.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 43 Department : 2001 - Police Sheriff Patrol 9,862,000.00101-2001-60161 Increases for Police Services in FY 2018/19 are attributed to rising labor and pension costs. Police Overtime 258,000.00101-2001-60162 Target Team 1,960,000.00101-2001-60163 Community Services Officer 825,000.00101-2001-60164 Gang Task Force 191,000.00101-2001-60166 Narcotics Task Force 191,000.00101-2001-60167 School Officer 185,000.00101-2001-60168 Motor Officer 1,435,000.00101-2001-60169 Dedicated Sargeant 545,000.00101-2001-60170 Dedicated Lieutenant 312,000.00101-2001-60171 Sheriff - Mileage 510,000.00101-2001-60172 Booking Fees 18,000.00101-2001-60173 Blood/Alcohol Testing 20,000.00101-2001-60174 Special Enforcement Funds 95,000.00101-2001-60175 Sheriff - Other 470,000.00101-2001-60176 Sexual Assault Exam Fees 7,000.00101-2001-60193 Operating Supplies 10,000.00101-2001-60420 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 44 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 2002 - Fire Contract Services 4,918.00 2,000.00 2,000.00 2,000.00 0.00101-2002-60103 Professional Services 0.00 2,000.00 2,000.00 2,000.00 0.00101-2002-60107 Instructors 762.56 2,500.00 2,500.00 2,500.00 0.00101-2002-60110 Volunteers - Fire 14,594.40 16,000.00 16,000.00 16,000.00 0.00101-2002-60112 Landscape Contract 2,373.00 3,000.00 3,000.00 4,000.00 1,000.00101-2002-60116 Pest Control 51,935.66 7,000.00 7,000.00 3,000.00 -4,000.00101-2002-60123 Security & Alarm 5,368,873.97 6,170,000.00 6,170,000.00 6,350,000.00 180,000.00101-2002-60139 Fire Service Costs 200,376.52 223,000.00 223,000.00 250,000.00 27,000.00101-2002-60140 MOU - Indio Ladder Truck 45.86 60,000.00 60,000.00 60,000.00 0.00101-2002-60525 Career Builder 60 - Contract Services Totals:5,643,879.97 6,485,500.00 6,485,500.00 6,689,500.00 204,000.00 Maintenance & Operations 4,790.66 6,000.00 6,000.00 6,000.00 0.00101-2002-60320 Travel & Training 0.00 300.00 300.00 300.00 0.00101-2002-60351 Membership Dues 6,355.55 7,200.00 7,200.00 7,200.00 0.00101-2002-60406 Disaster Prep Supplies 0.00 500.00 500.00 500.00 0.00101-2002-60410 Printing 629.74 2,500.00 2,500.00 2,500.00 0.00101-2002-60545 Small Tools & Equipment 47,284.06 75,000.00 50,000.00 50,000.00 0.00101-2002-60670 Fire Station 5,466.12 10,000.00 10,000.00 10,000.00 0.00101-2002-60671 Repair & Maintenance - EOC 62 - Maintenance & Operations Totals:64,526.13 101,500.00 76,500.00 76,500.00 0.00 Repair & Maintenance 0.00 0.00 25,000.00 25,000.00 0.00101-2002-60691 Maintenance/Services 65 - Repair & Maintenance Totals:0.00 0.00 25,000.00 25,000.00 0.00 Utilities 1,418.59 2,000.00 2,000.00 3,000.00 1,000.00101-2002-61100 Utilities - Gas 22,632.18 28,000.00 28,000.00 33,000.00 5,000.00101-2002-61101 Utilities - Electricity 16,071.46 18,000.00 18,000.00 20,000.00 2,000.00101-2002-61200 Utilities - Water 8,763.95 15,000.00 15,000.00 16,000.00 1,000.00101-2002-61300 Utilities - Telephone 1,702.25 5,000.00 5,000.00 5,000.00 0.00101-2002-61304 Mobile/Cell Phones 2,216.07 4,000.00 4,000.00 5,000.00 1,000.00101-2002-61400 Utilities - Cable 66 - Utilities Totals:52,804.50 72,000.00 72,000.00 82,000.00 10,000.00 Capital Expenses 3,379.83 15,000.00 15,000.00 15,000.00 0.00101-2002-80101 Machinery & Equipment 68 - Capital Expenses Totals:3,379.83 15,000.00 15,000.00 15,000.00 0.00 Internal Service Charges 2,900.00 4,000.00 4,000.00 5,000.00 1,000.00101-2002-91843 Property & Crime Insurance 11,400.00 11,000.00 11,000.00 12,000.00 1,000.00101-2002-91844 Earthquake Insurance 15,700.00 16,000.00 16,000.00 20,000.00 4,000.00101-2002-98110 Information Tech Charges 22,000.00 25,000.00 25,000.00 32,600.00 7,600.00101-2002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:52,000.00 56,000.00 56,000.00 69,600.00 13,600.00 2002 - Fire Totals:5,816,590.43 6,730,000.00 6,730,000.00 6,957,600.00 227,600.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 45 Department : 2002 - Fire Professional Services 2,000.00101-2002-60103 Fire Abatement Instructors 2,000.00101-2002-60107 Pest Control 4,000.00101-2002-60116 Fire Service Costs 6,350,000.00101-2002-60139 Captain, Medic Engineers, Engineers Fire Fighter II - Medics, Fire Fighter II Fire Safety Specialist, Overhead/Administration & Direct Operating Expenses Medic Unit Operating Costs Fire Engine Replacement Charges Travel & Training 6,000.00101-2002-60320 Emergency Prepardeness Citywide Training Membership Dues 300.00101-2002-60351 Printing 500.00101-2002-60410 Fire Station 50,000.00101-2002-60670 Maintenance/Services 25,000.00101-2002-60691 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 46 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 3001 - Community Resources Administration Salaries and Benefits 349,622.82 340,000.00 360,640.00 421,000.00 60,360.00101-3001-50101 Permanent Full Time 5,825.91 9,400.00 0.00 0.00 0.00101-3001-50102 Salaries - Part Time 3,450.00 3,600.00 3,600.00 2,700.00 -900.00101-3001-50110 Commissions & Boards 574.50 800.00 800.00 500.00 -300.00101-3001-50150 Other Compensation 30,404.73 32,400.00 33,910.00 33,800.00 -110.00101-3001-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-3001-50210 PERS-Survivor Benefits 54,267.28 63,700.00 63,700.00 80,100.00 16,400.00101-3001-50221 Medical Insurance 1,094.39 0.00 0.00 0.00 0.00101-3001-50222 Vision Insurance 4,405.05 0.00 0.00 0.00 0.00101-3001-50223 Dental Insurance 360.50 0.00 0.00 0.00 0.00101-3001-50224 Life Insurance 3,109.69 3,200.00 3,200.00 3,900.00 700.00101-3001-50225 Long Term Disability 10,800.00 8,900.00 8,900.00 6,700.00 -2,200.00101-3001-50230 Workers Comp Insurance 5,204.43 5,600.00 5,600.00 6,100.00 500.00101-3001-50240 Social Security-Medicare 472.73 0.00 0.00 0.00 0.00101-3001-50241 Social Security-FICA 50 - Salaries and Benefits Totals:469,592.03 467,700.00 480,450.00 554,900.00 74,450.00 Contract Services 0.00 0.00 3,500.00 5,000.00 1,500.00101-3001-60103 Professional Services 48,360.00 60,000.00 70,000.00 60,000.00 -10,000.00101-3001-60135 Boys & Girls Club 60 - Contract Services Totals:48,360.00 60,000.00 73,500.00 65,000.00 -8,500.00 Maintenance & Operations 1,522.40 0.00 0.00 0.00 0.00101-3001-60184 Fritz Burns Park 1,646.36 7,500.00 7,500.00 7,500.00 0.00101-3001-60320 Travel & Training 1,243.08 0.00 0.00 0.00 0.00101-3001-60351 Membership Dues 1,833.75 3,000.00 3,000.00 3,000.00 0.00101-3001-60400 Office Supplies 44.45 800.00 800.00 1,800.00 1,000.00101-3001-60420 Operating Supplies 60,000.00 60,000.00 60,000.00 60,000.00 0.00101-3001-60510 Grants & Economic Development/Marketing 69,867.72 0.00 0.00 0.00 0.00101-3001-60512 Art Event 0.00 2,100.00 2,100.00 2,100.00 0.00101-3001-60527 2-1-1 Hotline 0.00 1,100.00 1,100.00 0.00 -1,100.00101-3001-60529 LQ Historical Museum 3,000.00 3,000.00 3,000.00 3,000.00 0.00101-3001-60531 Homeless Bus Passes 50,000.00 50,000.00 50,000.00 0.00 -50,000.00101-3001-60532 Homelessness Assistance 1,271.86 0.00 0.00 0.00 0.00101-3001-60553 Tree Lighting Ceremony 62 - Maintenance & Operations Totals:190,429.62 127,500.00 127,500.00 77,400.00 -50,100.00 Internal Service Charges 62,400.00 25,200.00 25,200.00 46,600.00 21,400.00101-3001-98110 Information Tech Charges 12,600.00 23,100.00 23,100.00 0.00 -23,100.00101-3001-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:75,000.00 48,300.00 48,300.00 46,600.00 -1,700.00 3001 - Community Resources Administration Totals:783,381.65 703,500.00 729,750.00 743,900.00 14,150.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 47 Department : 3001 - Community Resources Administration Permanent Full Time 421,000.00101-3001-50101 100% - Administrative Technician 100% - Community Resources Director 100% - Public Safety Manager 50% - Community Resources Manager 50% - Management Analyst Increase in FY 2018/19 - 50% of the Management Analyst position was added to this division. The other 50% of Management Analyst is allocated to the Information Technology Fund. Professional Services 5,000.00101-3001-60103 Travel & Training 7,500.00101-3001-60320 CA Parks and Recreation Society (CPRS) Local and Regional Training Operating Supplies 1,800.00101-3001-60420 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 48 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 3002 - Wellness Center Operations Salaries and Benefits 225,666.09 233,800.00 240,800.00 207,000.00 -33,800.00101-3002-50101 Permanent Full Time 48,367.79 139,100.00 113,600.00 120,000.00 6,400.00101-3002-50102 Salaries - Part Time 1,377.00 1,500.00 1,500.00 1,200.00 -300.00101-3002-50150 Other Compensation 35,416.29 43,500.00 44,120.00 18,300.00 -25,820.00101-3002-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-3002-50210 PERS-Survivor Benefits 29,667.28 72,800.00 72,800.00 70,100.00 -2,700.00101-3002-50221 Medical Insurance 612.05 0.00 0.00 0.00 0.00101-3002-50222 Vision Insurance 3,528.70 0.00 0.00 0.00 0.00101-3002-50223 Dental Insurance 261.64 0.00 0.00 0.00 0.00101-3002-50224 Life Insurance 2,361.47 2,600.00 2,600.00 2,300.00 -300.00101-3002-50225 Long Term Disability 7,200.00 5,900.00 5,900.00 5,800.00 -100.00101-3002-50230 Workers Comp Insurance 4,056.61 14,000.00 14,000.00 3,000.00 -11,000.00101-3002-50240 Social Security-Medicare 2,998.94 0.00 0.00 0.00 0.00101-3002-50241 Social Security-FICA 50 - Salaries and Benefits Totals:361,513.86 513,300.00 495,420.00 427,800.00 -67,620.00 Contract Services 2,500.00 4,300.00 4,300.00 4,300.00 0.00101-3002-60103 Professional Services 83,093.37 80,000.00 80,000.00 92,000.00 12,000.00101-3002-60107 Instructors 3,000.00 3,000.00 3,000.00 3,000.00 0.00101-3002-60108 Technical 60 - Contract Services Totals:88,593.37 87,300.00 87,300.00 99,300.00 12,000.00 Maintenance & Operations 0.00 5,000.00 5,000.00 5,000.00 0.00101-3002-60157 Rental Expense 175.00 0.00 0.00 0.00 0.00101-3002-60320 Travel & Training 0.00 0.00 0.00 1,000.00 1,000.00101-3002-60321 Training & Education 5,523.39 7,400.00 7,400.00 7,600.00 200.00101-3002-60351 Membership Dues 389.09 500.00 500.00 900.00 400.00101-3002-60352 Subscriptions & Publications 1,466.14 3,000.00 3,000.00 3,000.00 0.00101-3002-60400 Office Supplies 24,055.79 45,000.00 45,000.00 45,000.00 0.00101-3002-60420 Operating Supplies 86.74 1,000.00 1,000.00 1,000.00 0.00101-3002-60432 Tools/Equipment -1,615.83 0.00 0.00 0.00 0.00101-3002-60691 Maintenance/Services 62 - Maintenance & Operations Totals:30,080.32 61,900.00 61,900.00 63,500.00 1,600.00 Utilities 15.29 0.00 0.00 0.00 0.00101-3002-61100 Utilities - Gas 1,835.71 0.00 0.00 0.00 0.00101-3002-61200 Utilties - Water 66 - Utilities Totals:1,851.00 0.00 0.00 0.00 0.00 Internal Service Charges 31,400.00 16,800.00 16,800.00 40,800.00 24,000.00101-3002-98110 Information Tech Charges 8,600.00 0.00 0.00 16,300.00 16,300.00101-3002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:40,000.00 16,800.00 16,800.00 57,100.00 40,300.00 3002 - Wellness Center Operations Totals:522,038.55 679,300.00 661,420.00 647,700.00 -13,720.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 49 Department : 3002 - Wellness Center Operations Permanent Full Time 207,000.00101-3002-50101 100% - Community Resources Coordinator (2) 100% - Office Assistant 50% - Community Resources Manager In FY 2018/19 the Community Program & Wellness Supervisor was converted to Community Resources Manager and is allocated 50% in Community Resources Administration. Salaries - Part Time 120,000.00101-3002-50102 100% - Recreational Leaders Professional Services 4,300.00101-3002-60103 Instructors 92,000.00101-3002-60107 Wellness Center class instructors Technical 3,000.00101-3002-60108 Rental Expense 5,000.00101-3002-60157 Membership Dues 7,600.00101-3002-60351 Amount Motion Picture Licensing Corp 500.00 National Council on Aging 100.00 TechnoGym Apps 7,000.00 Subscriptions & Publications 900.00101-3002-60352 Amount Desert Sun Newspaper 300.00 Wellness Publications 600.00 Operating Supplies 45,000.00101-3002-60420 Amount Community Luncheons 14,000.00 Fitness Center Supplies 26,000.00 General Supplies 3,000.00 Health Fair 2,000.00 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 50 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 3003 - Recreation Programs & Special Events Salaries and Benefits 0.00 51,200.00 52,740.00 55,300.00 2,560.00101-3003-50101 Permanent Full Time 50,924.98 34,300.00 34,300.00 99,100.00 64,800.00101-3003-50102 Salaries - Part Time 0.00 500.00 500.00 500.00 0.00101-3003-50150 Other Compensation 0.00 3,300.00 3,400.00 10,200.00 6,800.00101-3003-50200 PERS-City Portion 0.00 100.00 100.00 300.00 200.00101-3003-50210 PERS-Survivor Benefits 0.00 18,200.00 18,200.00 20,100.00 1,900.00101-3003-50221 Medical Insurance 0.00 0.00 0.00 600.00 600.00101-3003-50225 Long Term Disability 4,900.00 8,900.00 8,900.00 1,700.00 -7,200.00101-3003-50230 Workers Comp Insurance 738.75 3,400.00 3,400.00 11,900.00 8,500.00101-3003-50240 Social Security-Medicare 3,157.54 0.00 0.00 0.00 0.00101-3003-50241 Social Security-FICA 50 - Salaries and Benefits Totals:59,721.27 119,900.00 121,540.00 199,700.00 78,160.00 Contract Services 373.46 0.00 0.00 0.00 0.00101-3003-60107 Instructors 60 - Contract Services Totals:373.46 0.00 0.00 0.00 0.00 Maintenance & Operations 6,514.51 6,000.00 6,000.00 7,000.00 1,000.00101-3003-60122 Credit Card Fees 18,853.59 186,000.00 186,000.00 261,000.00 75,000.00101-3003-60149 Community Experiences 1,750.00 2,400.00 2,400.00 2,400.00 0.00101-3003-60157 Rental Expense 2,111.95 0.00 0.00 1,000.00 1,000.00101-3003-60320 Travel & Training 0.00 2,400.00 2,400.00 2,400.00 0.00101-3003-60351 Membership Dues 7,539.81 11,500.00 11,500.00 11,500.00 0.00101-3003-60420 Operating Supplies 62 - Maintenance & Operations Totals:36,769.86 208,300.00 208,300.00 285,300.00 77,000.00 Internal Service Charges 31,400.00 25,200.00 25,200.00 11,700.00 -13,500.00101-3003-98110 Information Tech Charges 1,600.00 11,600.00 11,600.00 32,600.00 21,000.00101-3003-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:33,000.00 36,800.00 36,800.00 44,300.00 7,500.00 3003 - Recreation Programs & Special Events Totals:129,864.59 365,000.00 366,640.00 529,300.00 162,660.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 51 Department : 3003 - Recreation Programs & Special Events Permanent Full Time 55,300.00101-3003-50101 100% - Management Assistant Salaries - Part Time 99,100.00101-3003-50102 100% - Senior Recreational Leaders (2) 100% - Reacreational Leaders Community Experiences 261,000.00101-3003-60149 Amount Art on Main Street 20,000.00 Brew in LQ 45,000.00 Community Picnic 5,000.00 Egg Hunt 1,500.00 Expanded Community Programs & Activities 100,000.00 Golf Tour and Banquet 2,500.00 Ironman 75,000.00 Outdoor Movies 3,000.00 Tree Lighting 4,500.00 Veteran's Day 2,000.00 YMCA Partner Events 2,500.00 Rental Expense 2,400.00101-3003-60157 Travel & Training 1,000.00101-3003-60320 Membership Dues 2,400.00101-3003-60351 Operating Supplies 11,500.00101-3003-60420 Amount Athletic Programs 4,500.00 Event Supplies and Equipment 5,000.00 Staff Supplies 2,000.00 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 52 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 6004 - Code Compliance/Animal Control Salaries and Benefits 375,406.35 471,400.00 465,540.00 478,600.00 13,060.00101-6004-50101 Permanent Full Time 3,944.56 4,400.00 4,400.00 4,900.00 500.00101-6004-50105 Salaries - Overtime 77,538.93 98,700.00 100,140.00 47,400.00 -52,740.00101-6004-50200 PERS-City Portion 0.00 200.00 200.00 200.00 0.00101-6004-50210 PERS-Survivor Benefits 64,137.30 127,300.00 127,300.00 140,200.00 12,900.00101-6004-50221 Medical Insurance 1,041.48 0.00 0.00 0.00 0.00101-6004-50222 Vision Insurance 4,389.18 0.00 0.00 0.00 0.00101-6004-50223 Dental Insurance 375.36 0.00 0.00 0.00 0.00101-6004-50224 Life Insurance 3,931.38 5,100.00 5,100.00 5,200.00 100.00101-6004-50225 Long Term Disability 12,000.00 17,700.00 17,700.00 11,600.00 -6,100.00101-6004-50230 Workers Comp Insurance 5,860.78 6,900.00 6,900.00 7,000.00 100.00101-6004-50240 Social Security-Medicare 20,000.00 0.00 8,000.00 0.00 -8,000.00101-6004-50300 Employee Recognition 50 - Salaries and Benefits Totals:568,625.32 731,700.00 735,280.00 695,100.00 -40,180.00 Contract Services 1,433.80 1,000.00 1,000.00 2,000.00 1,000.00101-6004-60108 Technical 22,297.01 30,000.00 30,000.00 30,000.00 0.00101-6004-60111 Administrative Citation Services 0.00 1,000.00 1,000.00 1,000.00 0.00101-6004-60119 Vehicle Abatement 6,184.00 10,000.00 10,000.00 12,000.00 2,000.00101-6004-60120 Lot Cleaning 14,445.46 0.00 10,000.00 10,000.00 0.00101-6004-60125 Temporary Agency Services 0.00 14,000.00 14,000.00 15,000.00 1,000.00101-6004-60194 Veterinary Service 169,010.74 190,000.00 190,000.00 190,000.00 0.00101-6004-60197 Animal Shelter Contract Service 60 - Contract Services Totals:213,371.01 246,000.00 256,000.00 260,000.00 4,000.00 Maintenance & Operations 0.00 7,500.00 12,500.00 12,500.00 0.00101-6004-60121 Low-Income Housing Grants 0.00 2,000.00 2,000.00 2,000.00 0.00101-6004-60130 Resident Assistance Program 1,299.58 2,000.00 2,000.00 3,000.00 1,000.00101-6004-60320 Travel & Training 425.00 700.00 700.00 700.00 0.00101-6004-60351 Membership Dues 2,040.39 0.00 0.00 2,000.00 2,000.00101-6004-60400 Office Supplies 3,064.86 3,000.00 3,000.00 10,000.00 7,000.00101-6004-60410 Printing 9,273.05 5,000.00 5,000.00 3,000.00 -2,000.00101-6004-60425 Supplies - Field 0.00 500.00 500.00 0.00 -500.00101-6004-60551 Rabies Booster/County Health 5,980.19 5,000.00 5,000.00 5,000.00 0.00101-6004-60690 Uniforms 62 - Maintenance & Operations Totals:22,083.07 25,700.00 30,700.00 38,200.00 7,500.00 Internal Service Charges 47,100.00 50,300.00 50,300.00 81,500.00 31,200.00101-6004-98110 Information Tech Charges 60,800.00 80,800.00 80,800.00 81,500.00 700.00101-6004-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:107,900.00 131,100.00 131,100.00 163,000.00 31,900.00 6004 - Code Compliance/Animal Control Totals:911,979.40 1,134,500.00 1,153,080.00 1,156,300.00 3,220.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 53 Department : 6004 - Code Compliance/Animal Control Permanent Full Time 478,600.00101-6004-50101 100% - Administrative Assistant 100% - Animal Control/Code Compliance Supervisor 100% - Code Compliance Officer I 100% - Code Compliance Officer II (3) 100% - Public Safetly Analyst Technical 2,000.00101-6004-60108 Administrative Citation Services 30,000.00101-6004-60111 Temporary Agency Services 10,000.00101-6004-60125 To assist with code enforcement cases Travel & Training 3,000.00101-6004-60320 Membership Dues 700.00101-6004-60351 Printing 10,000.00101-6004-60410 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 54 THIS PAGE INTENTIONALLY LEFT BLANK 55 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 3005 - Parks Maintenance 1,708,800.97 1,582,300.00 1,635,700.00 2,066,700.00 431,000.00 Salaries and Benefits 358,327.61 426,400.00 444,800.00 427,300.00 -17,500.00 Contract Services 365,284.91 427,000.00 422,000.00 426,000.00 4,000.00 Maintenance & Operations 128,412.80 137,600.00 177,600.00 223,600.00 46,000.00 Utilities 292,875.65 223,100.00 223,100.00 240,500.00 17,400.00 Internal Service Charges 563,900.00 368,200.00 368,200.00 749,300.00 381,100.00 3008 - Public Buildings 1,376,354.84 1,601,100.00 1,613,650.00 1,724,800.00 111,150.00 Salaries and Benefits 298,172.55 400,800.00 413,350.00 411,500.00 -1,850.00 Contract Services 93,031.41 118,000.00 95,000.00 113,000.00 18,000.00 Maintenance & Operations 775,079.98 759,900.00 782,900.00 799,600.00 16,700.00 Utilities 135,824.59 129,000.00 129,000.00 131,000.00 2,000.00 Capital Expenses 22,746.31 0.00 0.00 0.00 0.00 Internal Service Charges 51,500.00 193,400.00 193,400.00 269,700.00 76,300.00 7003 - Streets 10,754.70 8,600.00 8,600.00 14,900.00 6,300.00 Maintenance & Operations 10,754.70 8,600.00 8,600.00 14,900.00 6,300.00 FACILITIES TOTAL 3,095,910.51 3,192,000.00 3,257,950.00 3,806,400.00 548,450.00 CITY OF LA QUINTA FACILITIES SUMMARY OF EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 56 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 3005 - Parks Maintenance Salaries and Benefits 232,697.19 268,400.00 285,330.00 294,300.00 8,970.00101-3005-50101 Permanent Full Time 282.69 800.00 800.00 400.00 -400.00101-3005-50105 Salaries - Overtime 4,193.75 4,900.00 4,900.00 4,600.00 -300.00101-3005-50106 Standby 5,889.90 5,200.00 5,200.00 7,000.00 1,800.00101-3005-50107 Standby Overtime 459.00 500.00 500.00 500.00 0.00101-3005-50150 Other Compensation 41,597.62 57,000.00 58,470.00 28,300.00 -30,170.00101-3005-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-3005-50210 PERS-Survivor Benefits 55,538.03 70,900.00 70,900.00 78,100.00 7,200.00101-3005-50221 Medical Insurance 1,049.36 0.00 0.00 0.00 0.00101-3005-50222 Vision Insurance 3,222.18 0.00 0.00 0.00 0.00101-3005-50223 Dental Insurance 259.30 0.00 0.00 0.00 0.00101-3005-50224 Life Insurance 2,314.22 2,900.00 2,900.00 3,200.00 300.00101-3005-50225 Long Term Disability 7,300.00 11,800.00 11,800.00 6,500.00 -5,300.00101-3005-50230 Workers Comp Insurance 3,524.37 3,900.00 3,900.00 4,300.00 400.00101-3005-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:358,327.61 426,400.00 444,800.00 427,300.00 -17,500.00 Contract Services 8,965.90 25,000.00 20,000.00 0.00 -20,000.00101-3005-60104 Consultants 345,231.73 382,000.00 382,000.00 426,000.00 44,000.00101-3005-60112 Landscape Contract 11,342.28 20,000.00 20,000.00 0.00 -20,000.00101-3005-60113 Landscape Improvements -255.00 0.00 0.00 0.00 0.00101-3005-60123 Security & Alarm 60 - Contract Services Totals:365,284.91 427,000.00 422,000.00 426,000.00 4,000.00 Maintenance & Operations 24,302.26 15,000.00 15,000.00 15,000.00 0.00101-3005-60117 Civic Center Lake Maintenance 425.00 1,000.00 1,000.00 1,000.00 0.00101-3005-60136 Lighting Service 39,834.36 35,000.00 35,000.00 40,000.00 5,000.00101-3005-60184 Fritz Burns Pool 1,380.77 5,000.00 8,500.00 5,000.00 -3,500.00101-3005-60320 Travel & Training 430.00 2,100.00 2,100.00 2,100.00 0.00101-3005-60351 Membership Dues 695.80 2,000.00 2,000.00 1,000.00 -1,000.00101-3005-60400 Office Supplies 126.74 0.00 0.00 0.00 0.00101-3005-60420 Operating Supplies 11,731.29 20,000.00 16,500.00 40,000.00 23,500.00101-3005-60423 Supplies-Graffiti and Vandalism 27,016.30 50,000.00 0.00 0.00 0.00101-3005-60424 Materials 0.00 1,000.00 1,000.00 500.00 -500.00101-3005-60427 Safety Gear 0.00 0.00 50,000.00 50,000.00 0.00101-3005-60431 Materials/Supplies 2,393.28 1,500.00 6,500.00 5,000.00 -1,500.00101-3005-60432 Tools/Equipment 15,714.75 0.00 15,000.00 15,000.00 0.00101-3005-60554 LQ Park Water Feature 284.92 0.00 0.00 0.00 0.00101-3005-60555 Sports Complex Building 3,180.03 4,000.00 4,000.00 8,000.00 4,000.00101-3005-60557 Tree Maintenance 897.30 1,000.00 1,000.00 1,000.00 0.00101-3005-60690 Uniforms 0.00 0.00 20,000.00 40,000.00 20,000.00101-3005-60691 Maintenance/Services 62 - Maintenance & Operations Totals:128,412.80 137,600.00 177,600.00 223,600.00 46,000.00 Utilities 152.85 200.00 200.00 200.00 0.00101-3005-61102 Utilities - Electric - Monticello Park 31,971.22 30,000.00 30,000.00 25,000.00 -5,000.00101-3005-61103 Utilities - Electric - Civic Center Park 102.96 600.00 600.00 100.00 -500.00101-3005-61104 Utilities - Electric - Pioneer Park 15,612.35 15,000.00 15,000.00 14,000.00 -1,000.00101-3005-61105 Utilities - Electric - Fritz Burns Park 31,159.89 30,000.00 30,000.00 30,000.00 0.00101-3005-61106 Utilities - Electric - Sports Complex 3,923.38 5,000.00 5,000.00 4,000.00 -1,000.00101-3005-61108 Utilities - Electric - Colonel Paige 38,266.15 30,000.00 30,000.00 35,000.00 5,000.00101-3005-61109 Utilities - Electric - Community Park 696.74 1,000.00 1,000.00 700.00 -300.00101-3005-61110 Utilities - Electric - Adams Park 171.44 300.00 300.00 200.00 -100.00101-3005-61111 Utilities - Electric - Velasco Park 284.77 300.00 300.00 300.00 0.00101-3005-61113 Utilities - Electric - Eisenhower Park 157.26 200.00 200.00 200.00 0.00101-3005-61114 Utilities - Electric - Desert Pride 21,883.01 12,000.00 12,000.00 14,000.00 2,000.00101-3005-61201 Utilities - Water -Monticello Park 36,679.31 24,000.00 24,000.00 26,000.00 2,000.00101-3005-61202 Utilities - Water - Civic Center Park 1,479.20 1,000.00 1,000.00 1,500.00 500.00101-3005-61203 Utilities - Water -Eisenhower Park 11,274.88 8,000.00 8,000.00 15,000.00 7,000.00101-3005-61204 Utilities - Water -Fritz Burns park 1,478.26 700.00 700.00 1,000.00 300.00101-3005-61205 Utilities - Water -Velasco Park 5,138.61 3,000.00 3,000.00 4,000.00 1,000.00101-3005-61206 Utilities - Water -Desert Pride 6,985.96 6,000.00 6,000.00 9,000.00 3,000.00101-3005-61207 Utilities - Water -Pioneer Park CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 57 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 618.44 300.00 300.00 300.00 0.00101-3005-61208 Utilities - Water -Seasons Park 84,148.26 50,000.00 50,000.00 55,000.00 5,000.00101-3005-61209 Utilities - Water -Community Park 196.52 5,000.00 5,000.00 4,000.00 -1,000.00101-3005-61210 Utilities - Water -Adams Park 494.19 500.00 500.00 1,000.00 500.00101-3005-61300 Utilities - Telephone 66 - Utilities Totals:292,875.65 223,100.00 223,100.00 240,500.00 17,400.00 Internal Service Charges 28,100.00 33,600.00 33,600.00 45,400.00 11,800.00101-3005-98110 Information Tech Charges 533,700.00 300,000.00 300,000.00 655,000.00 355,000.00101-3005-98130 Park Equipment Maintenance 2,100.00 34,600.00 34,600.00 48,900.00 14,300.00101-3005-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:563,900.00 368,200.00 368,200.00 749,300.00 381,100.00 3005 - Parks Maintenance Totals:1,708,800.97 1,582,300.00 1,635,700.00 2,066,700.00 431,000.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 58 Department : 3005 - Parks Maintenance Permanent Full Time 294,300.00101-3005-50101 100% - Parks Foreman 100% - Parks Superintendent 100% - Parks Worker I 50% - Management Assistant 40% - Facilities Director In FY 2018/19, the Administrative Technician was reclassified as a Management Assistant. 50% of the Management Assistant and 40% of Facilities Director is allocated to Public Buildings. The remaining 20% of Facilities Director is allocated to SilverRock Resort Fund. Travel & Training 5,000.00101-3005-60320 Aquatic Facility Operator Course Maintenance Agreement School Playground Certifications Membership Dues 2,100.00101-3005-60351 Amount 1,200.00 700.00 CA Parks & Recreation Association (CPRS) National Park & Recreation Association (NPRA) SoCal Municipal Athletic Federation (SCMAF)200.00 Maintenance/Services 40,000.00101-3005-60691 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 59 THIS PAGE INTENTIONALLY LEFT BLANK 60 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 3008 - Public Buildings Salaries and Benefits 212,932.24 265,600.00 277,220.00 283,300.00 6,080.00101-3008-50101 Permanent Full Time 3,272.25 3,200.00 3,200.00 3,400.00 200.00101-3008-50106 Standby 1,236.84 1,000.00 1,000.00 1,400.00 400.00101-3008-50107 Standby Overtime 459.00 600.00 600.00 500.00 -100.00101-3008-50150 Other Compensation 28,583.03 41,700.00 42,630.00 24,400.00 -18,230.00101-3008-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-3008-50210 PERS-Survivor Benefits 36,758.18 70,100.00 70,100.00 78,100.00 8,000.00101-3008-50221 Medical Insurance 521.55 0.00 0.00 0.00 0.00101-3008-50222 Vision Insurance 1,564.98 0.00 0.00 0.00 0.00101-3008-50223 Dental Insurance 241.82 0.00 0.00 0.00 0.00101-3008-50224 Life Insurance 2,110.08 2,900.00 2,900.00 3,100.00 200.00101-3008-50225 Long Term Disability 7,200.00 11,800.00 11,800.00 13,100.00 1,300.00101-3008-50230 Workers Comp Insurance 3,292.58 3,800.00 3,800.00 4,100.00 300.00101-3008-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:298,172.55 400,800.00 413,350.00 411,500.00 -1,850.00 Contract Services 2,411.94 25,000.00 0.00 0.00 0.00101-3008-60108 Technical 80,427.05 81,000.00 81,000.00 100,000.00 19,000.00101-3008-60115 Janitorial 3,682.20 4,000.00 4,000.00 4,000.00 0.00101-3008-60116 Pest Control 6,510.22 8,000.00 8,000.00 7,000.00 -1,000.00101-3008-60123 Security & Alarm 0.00 0.00 2,000.00 2,000.00 0.00101-3008-60196 Annual Permits/Inspections 60 - Contract Services Totals:93,031.41 118,000.00 95,000.00 113,000.00 18,000.00 Maintenance & Operations 507.00 2,000.00 2,000.00 2,000.00 0.00101-3008-60320 Travel & Training 6,204.64 2,500.00 2,500.00 0.00 -2,500.00101-3008-60420 Operating Supplies 0.00 1,000.00 1,000.00 1,000.00 0.00101-3008-60427 Safety Gear 0.00 0.00 25,000.00 25,000.00 0.00101-3008-60431 Materials/Supplies 8,222.09 5,000.00 8,000.00 8,000.00 0.00101-3008-60432 Tools/Equipment 0.00 1,000.00 1,000.00 1,000.00 0.00101-3008-60481 Office Supplies 1,008.19 1,000.00 1,000.00 10,000.00 9,000.00101-3008-60664 Fire Extinguisher/First Aid Services 16,265.03 25,000.00 0.00 0.00 0.00101-3008-60665 Maint.-Other Equipment 13,224.16 20,000.00 20,000.00 30,000.00 10,000.00101-3008-60667 HVAC 6,469.10 0.00 0.00 0.00 0.00101-3008-60682 Uninterrupted Power(UPS) 1,025.63 1,000.00 1,000.00 1,000.00 0.00101-3008-60690 Uniforms 44,053.80 30,000.00 50,000.00 50,000.00 0.00101-3008-60691 Maintenance/Services 678,100.34 671,400.00 671,400.00 671,600.00 200.00101-3008-61702 Facility Rent 62 - Maintenance & Operations Totals:775,079.98 759,900.00 782,900.00 799,600.00 16,700.00 Utilities 3,597.99 5,000.00 5,000.00 5,000.00 0.00101-3008-61100 Utilities - Gas 127,008.67 120,000.00 120,000.00 120,000.00 0.00101-3008-61101 Utilities - Electricity 5,217.93 4,000.00 4,000.00 6,000.00 2,000.00101-3008-61200 Utilities - Water 66 - Utilities Totals:135,824.59 129,000.00 129,000.00 131,000.00 2,000.00 Capital Expenses 22,746.31 0.00 0.00 0.00 0.00101-3008-71021 Furniture 68 - Capital Expenses Totals:22,746.31 0.00 0.00 0.00 0.00 Internal Service Charges 0.00 75,000.00 75,000.00 80,000.00 5,000.00101-3008-91842 Liability Insurance & Claims 28,200.00 83,800.00 83,800.00 92,000.00 8,200.00101-3008-98110 Information Tech Charges 23,300.00 34,600.00 34,600.00 97,700.00 63,100.00101-3008-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:51,500.00 193,400.00 193,400.00 269,700.00 76,300.00 3008 - Public Buildings Totals:1,376,354.84 1,601,100.00 1,613,650.00 1,724,800.00 111,150.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 61 Department : 3008 - Public Buildings Permanent Full Time 283,300.00101-3008-50101 100% - Facilities Maintenance Coordinator 100% - Facilities Worker I 100% - Building Superintendent 50% - Management Assistant 40% - Facilities Director In FY 2018/19, the Administrative Technician was reclassified as a Management Assistant. 50% of the Management Assistant and 40% of Facilities Director is allocated to Public Buildings. The remaining 20% of Facilities Director is allocated to SilverRock Resort Fund. Janitorial 100,000.00101-3008-60115 Amount City Hall 37,200.00 Colonel Mitchell Paige Restroom 1,200.00 Fritz Burns Pool 1,200.00 La Quinta Park 1,800.00 Public Works Yard 1,800.00 RFP pending 29,500.00 Snack Bars 400.00 Sports Complex 5,400.00 Wellness Center 21,500.00 Pest Control 4,000.00101-3008-60116 Amount City Hall 800.00 Fritz Burns Pool 500.00 La Quinta Park 500.00 Public Works Office 500.00 Sports Complex 500.00 Wellness Center 1,200.00 Travel & Training 2,000.00101-3008-60320 Fire Extinguisher/First Aid Services 10,000.00101-3008-60664 Increase due to first aid AED machines needed and testing required every 90 days HVAC 30,000.00101-3008-60667 Amount City Hall 4,000.00 Fire Station #32 6,000.00 Fritz Burns Pool 4,000.00 La Quinta Park 1,000.00 Maintenance 10,000.00 Public Works Office 1,000.00 Sports Complex 1,000.00 Wellness Center 3,000.00 Maintenance/Services 50,000.00101-3008-60691 Amount 12,000.00 1,000.00 6,000.00 20,000.00 5,000.00 1,000.00 1,000.00 3,000.00 City Hall Fire Station #32 Firtz Burns Pool Miscellaneous repairs as needed La Quinta Park Public Works Office Sports Complex Wellness Center YMCA 1,000.00 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 62 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 7003 - Streets Maintenance & Operations 2,734.50 3,500.00 3,500.00 5,000.00 1,500.00101-7003-60320 Travel & Training 145.00 400.00 400.00 400.00 0.00101-7003-60351 Membership Dues 4,045.66 1,000.00 1,000.00 1,000.00 0.00101-7003-60400 Office Supplies 657.23 1,200.00 1,200.00 5,000.00 3,800.00101-7003-60420 Operating Supplies 3,172.31 2,500.00 2,500.00 3,500.00 1,000.00101-7003-60432 Tools/Equipment 62 - Maintenance & Operations Totals:10,754.70 8,600.00 8,600.00 14,900.00 6,300.00 7003 - Streets Totals:10,754.70 8,600.00 8,600.00 14,900.00 6,300.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 63 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 6001 - Design & Development Administration 1,003,341.29 1,205,500.00 1,211,870.00 1,179,300.00 -32,570.00 Salaries and Benefits 778,504.07 922,900.00 929,270.00 832,900.00 -96,370.00 Contract Services 111,944.22 155,000.00 140,000.00 140,000.00 0.00 Maintenance & Operations 33,293.00 26,900.00 41,900.00 42,200.00 300.00 Internal Service Charges 79,600.00 100,700.00 100,700.00 164,200.00 63,500.00 6002 - Planning 504,010.65 524,700.00 549,760.00 552,100.00 2,340.00 Salaries and Benefits 338,110.10 363,700.00 374,760.00 378,300.00 3,540.00 Contract Services 95,534.54 96,000.00 108,000.00 108,000.00 0.00 Maintenance & Operations 17,866.01 28,200.00 30,200.00 30,800.00 600.00 Internal Service Charges 52,500.00 36,800.00 36,800.00 35,000.00 -1,800.00 6003 - Building 695,619.70 917,200.00 925,650.00 962,100.00 36,450.00 Salaries and Benefits 433,369.42 527,600.00 536,050.00 522,500.00 -13,550.00 Contract Services 191,036.17 324,000.00 324,000.00 324,000.00 0.00 Maintenance & Operations 8,614.11 8,900.00 8,900.00 8,500.00 -400.00 Internal Service Charges 62,600.00 56,700.00 56,700.00 107,100.00 50,400.00 6006 - The Hub 638,565.28 786,300.00 809,160.00 712,700.00 -96,460.00 Salaries and Benefits 507,741.50 715,600.00 733,460.00 619,500.00 -113,960.00 Contract Services 48,067.44 10,000.00 10,000.00 10,000.00 0.00 Maintenance & Operations 3,356.34 14,600.00 19,600.00 19,100.00 -500.00 Internal Service Charges 79,400.00 46,100.00 46,100.00 64,100.00 18,000.00 7002 - Public Works Development Services 436,843.46 595,200.00 628,330.00 734,300.00 105,970.00 Salaries and Benefits 313,261.27 334,100.00 337,230.00 430,000.00 92,770.00 Contract Services 79,082.50 215,000.00 245,000.00 230,000.00 -15,000.00 Maintenance & Operations 1,499.69 6,200.00 6,200.00 6,700.00 500.00 Internal Service Charges 43,000.00 39,900.00 39,900.00 67,600.00 27,700.00 7006 - Engineering Services 1,858,330.76 1,299,400.00 1,360,620.00 1,263,500.00 -97,120.00 Salaries and Benefits 569,216.48 661,400.00 672,620.00 757,000.00 84,380.00 Contract Services 1,185,944.77 569,500.00 619,500.00 408,000.00 -211,500.00 Maintenance & Operations 8,669.51 15,000.00 15,000.00 17,000.00 2,000.00 Internal Service Charges 94,500.00 53,500.00 53,500.00 81,500.00 28,000.00 DESIGN/DEVELOPMENT TOTAL 5,136,711.14 5,328,300.00 5,485,390.00 5,404,000.00 -81,390.00 CITY OF LA QUINTA DESIGN & DEVELOPMENT SUMMARY OF EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 64 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 6001 - Design & Development Administration Salaries and Benefits 552,253.70 613,900.00 617,950.00 578,000.00 -39,950.00101-6001-50101 Permanent Full Time 7,340.00 11,400.00 11,400.00 10,500.00 -900.00101-6001-50110 Commissions & Boards 459.00 500.00 500.00 500.00 0.00101-6001-50150 Other Compensation 96,719.58 105,000.00 105,320.00 45,100.00 -60,220.00101-6001-50200 PERS-City Portion 0.00 200.00 200.00 300.00 100.00101-6001-50210 PERS-Survivor Benefits 76,258.44 154,600.00 154,600.00 170,200.00 15,600.00101-6001-50221 Medical Insurance 1,381.67 0.00 0.00 0.00 0.00101-6001-50222 Vision Insurance 9,186.20 0.00 0.00 0.00 0.00101-6001-50223 Dental Insurance 555.23 0.00 0.00 0.00 0.00101-6001-50224 Life Insurance 4,551.82 5,600.00 5,600.00 5,800.00 200.00101-6001-50225 Long Term Disability 17,800.00 19,200.00 19,200.00 14,100.00 -5,100.00101-6001-50230 Workers Comp Insurance 8,208.73 8,900.00 8,900.00 8,400.00 -500.00101-6001-50240 Social Security-Medicare 347.20 0.00 0.00 0.00 0.00101-6001-50241 Social Security-FICA 3,442.50 3,600.00 3,600.00 0.00 -3,600.00101-6001-50250 Vehicle Reimbursement 0.00 0.00 2,000.00 0.00 -2,000.00101-6001-50300 Employee Recognition 50 - Salaries and Benefits Totals:778,504.07 922,900.00 929,270.00 832,900.00 -96,370.00 Contract Services 37,362.25 90,000.00 110,000.00 75,000.00 -35,000.00101-6001-60103 Professional Services 68,048.57 65,000.00 30,000.00 65,000.00 35,000.00101-6001-60104 Consultants 6,533.40 0.00 0.00 0.00 0.00101-6001-60125 Temporary Agency Services 60 - Contract Services Totals:111,944.22 155,000.00 140,000.00 140,000.00 0.00 Maintenance & Operations 16,450.23 0.00 15,000.00 15,300.00 300.00101-6001-60102 Administration 3,490.72 6,600.00 6,600.00 6,600.00 0.00101-6001-60320 Travel & Training 742.50 1,000.00 1,000.00 1,000.00 0.00101-6001-60351 Membership Dues 505.68 500.00 500.00 500.00 0.00101-6001-60352 Subscriptions & Publications 8,887.04 11,000.00 11,000.00 11,000.00 0.00101-6001-60400 Office Supplies 2,457.83 1,000.00 1,000.00 1,000.00 0.00101-6001-60410 Printing 759.00 6,800.00 6,800.00 6,800.00 0.00101-6001-60450 Advertising 62 - Maintenance & Operations Totals:33,293.00 26,900.00 41,900.00 42,200.00 300.00 Internal Service Charges 76,500.00 54,500.00 54,500.00 99,000.00 44,500.00101-6001-98110 Information Tech Charges 3,100.00 46,200.00 46,200.00 65,200.00 19,000.00101-6001-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:79,600.00 100,700.00 100,700.00 164,200.00 63,500.00 6001 - Design & Development Administration Totals:1,003,341.29 1,205,500.00 1,211,870.00 1,179,300.00 -32,570.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 65 Department : 6001 - Design & Development Administration Permanent Full Time 578,000.00101-6001-50101 100% - Administrative Assistant (3) 100% - Design & Development Director 100% - Executive Assistant 100% - Management Analyst 100% - Management Assistant 100% - Management Specialist 50% - Vacation Rental/License Assistant with remaining 50% allocated to The Hub Professional Services 75,000.00101-6001-60103 Short Term Vacation Rental Compliance Contract Consultants 65,000.00101-6001-60104 Amount 5,000.00 10,000.00 Disadvantaged Business Enterprise Program Other Studies and Predesign for Projects 50,000.00 Travel & Training 6,600.00101-6001-60320 Amount 300.00 500.00 1,500.00 2,800.00 Bureau of Indian Affairs (BIA) Meetings Coachella Valley APWA Meetings League of CA Cities PW Officers Institute Miscellaneous Meetings Staff Professional Development 1,500.00 Membership Dues 1,000.00101-6001-60351 Amount 400.00 220.00 American Public Works Association (APWA) American Society of Civil Engineers (ASCE) CA Infrastructure 380.00 Subscriptions & Publications 500.00101-6001-60352 Printing 1,000.00101-6001-60410 Advertising 6,800.00101-6001-60450 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 66 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 6002 - Planning Salaries and Benefits 264,563.71 271,500.00 281,750.00 282,700.00 950.00101-6002-50101 Permanent Full Time 459.00 500.00 500.00 500.00 0.00101-6002-50150 Other Compensation 30,266.97 18,500.00 19,310.00 20,300.00 990.00101-6002-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-6002-50210 PERS-Survivor Benefits 2,295.00 2,400.00 2,400.00 2,400.00 0.00101-6002-50215 Other Fringe Benefits 23,239.82 54,600.00 54,600.00 60,100.00 5,500.00101-6002-50221 Medical Insurance 412.17 0.00 0.00 0.00 0.00101-6002-50222 Vision Insurance 1,189.80 0.00 0.00 0.00 0.00101-6002-50223 Dental Insurance 173.43 0.00 0.00 0.00 0.00101-6002-50224 Life Insurance 2,299.13 3,100.00 3,100.00 3,100.00 0.00101-6002-50225 Long Term Disability 9,300.00 8,900.00 8,900.00 5,000.00 -3,900.00101-6002-50230 Workers Comp Insurance 3,911.07 4,100.00 4,100.00 4,100.00 0.00101-6002-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:338,110.10 363,700.00 374,760.00 378,300.00 3,540.00 Contract Services 95,534.54 96,000.00 108,000.00 108,000.00 0.00101-6002-60103 Professional Services 60 - Contract Services Totals:95,534.54 96,000.00 108,000.00 108,000.00 0.00 Maintenance & Operations 3,125.81 14,000.00 16,000.00 16,000.00 0.00101-6002-60320 Travel & Training 1,055.00 1,900.00 1,900.00 1,300.00 -600.00101-6002-60351 Membership Dues 0.00 300.00 300.00 500.00 200.00101-6002-60352 Subscriptions & Publications 0.00 1,000.00 1,000.00 2,000.00 1,000.00101-6002-60410 Printing 13,685.20 11,000.00 11,000.00 11,000.00 0.00101-6002-60450 Advertising 62 - Maintenance & Operations Totals:17,866.01 28,200.00 30,200.00 30,800.00 600.00 Internal Service Charges 46,200.00 25,200.00 25,200.00 35,000.00 9,800.00101-6002-98110 Information Tech Charges 6,300.00 11,600.00 11,600.00 0.00 -11,600.00101-6002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:52,500.00 36,800.00 36,800.00 35,000.00 -1,800.00 6002 - Planning Totals:504,010.65 524,700.00 549,760.00 552,100.00 2,340.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 67 Department : 6002 - Planning Permanent Full Time 282,700.00101-6002-50101 100% - Associate Planner 100% - Planning Manager 100% - Senior Planner Professional Services 108,000.00101-6002-60103 Professional Planning and Environmental Services Travel & Training 16,000.00101-6002-60320 Amount Agricultural Labor Relations Board 1,500.00 APA Conference - Planning Manager 650.00 APA Conference - Principal & Associate Planner 1,300.00 Planning Commissioners Academy - League of Cities 11,550.00 Principal & Associate Planner Training 1,000.00 Membership Dues 1,300.00101-6002-60351 Amount American Planning Association (APA)1,300.00 Subscriptions & Publications 500.00101-6002-60352 International Cost Engineering Council - CEQA Books Printing 2,000.00101-6002-60410 Advertising 11,000.00101-6002-60450 Planning Hearing Notices Outreach Workshops CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 68 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 6003 - Building Salaries and Benefits 301,003.01 309,100.00 312,810.00 373,300.00 60,490.00101-6003-50101 Permanent Full Time 0.00 67,200.00 67,200.00 0.00 -67,200.00101-6003-50102 Salaries - Part Time 1,836.00 2,000.00 2,000.00 2,400.00 400.00101-6003-50150 Other Compensation 47,247.08 56,800.00 57,540.00 28,700.00 -28,840.00101-6003-50200 PERS-City Portion 0.00 100.00 100.00 200.00 100.00101-6003-50210 PERS-Survivor Benefits 61,109.61 72,800.00 72,800.00 100,100.00 27,300.00101-6003-50221 Medical Insurance 787.14 0.00 0.00 0.00 0.00101-6003-50222 Vision Insurance 4,135.82 0.00 0.00 0.00 0.00101-6003-50223 Dental Insurance 261.64 0.00 0.00 0.00 0.00101-6003-50224 Life Insurance 3,024.71 3,300.00 3,300.00 4,000.00 700.00101-6003-50225 Long Term Disability 9,600.00 11,800.00 11,800.00 8,300.00 -3,500.00101-6003-50230 Workers Comp Insurance 4,364.41 4,500.00 4,500.00 5,500.00 1,000.00101-6003-50240 Social Security-Medicare 0.00 0.00 4,000.00 0.00 -4,000.00101-6003-50300 Employee Recognition 50 - Salaries and Benefits Totals:433,369.42 527,600.00 536,050.00 522,500.00 -13,550.00 Contract Services 191,036.17 324,000.00 324,000.00 324,000.00 0.00101-6003-60118 Plan Checks 60 - Contract Services Totals:191,036.17 324,000.00 324,000.00 324,000.00 0.00 Maintenance & Operations 1,570.00 4,000.00 4,000.00 4,000.00 0.00101-6003-60320 Travel & Training 415.00 700.00 700.00 700.00 0.00101-6003-60351 Membership Dues 6,086.09 2,400.00 2,400.00 1,000.00 -1,400.00101-6003-60352 Subscriptions & Publications 543.02 1,800.00 1,800.00 1,800.00 0.00101-6003-60420 Operating Supplies 0.00 0.00 0.00 1,000.00 1,000.00101-6003-60425 Supplies - Field 62 - Maintenance & Operations Totals:8,614.11 8,900.00 8,900.00 8,500.00 -400.00 Internal Service Charges 54,000.00 33,600.00 33,600.00 58,200.00 24,600.00101-6003-98110 Information Tech Charges 8,600.00 23,100.00 23,100.00 48,900.00 25,800.00101-6003-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:62,600.00 56,700.00 56,700.00 107,100.00 50,400.00 6003 - Building Totals:695,619.70 917,200.00 925,650.00 962,100.00 36,450.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 69 Department : 6003 - Building Permanent Full Time 373,300.00101-6003-50101 100% - Building Inspector I 100% - Building Inspector II (2) 100% - Building Official 100% - Plans Examiner/Inspection Supervisor In FY 2017/18 Building Inspector I was added to mid-year budget and the part-time Plans Examiner position was eliminated. Plan Checks 324,000.00101-6003-60118 Travel & Training 4,000.00101-6003-60320 Membership Dues 700.00101-6003-60351 Subscriptions & Publications 1,000.00101-6003-60352 Operating Supplies 1,800.00101-6003-60420 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 70 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 6006 - The Hub Salaries and Benefits 348,973.73 435,500.00 449,670.00 365,700.00 -83,970.00101-6006-50101 Permanent Full Time 3,967.42 55,000.00 55,000.00 93,000.00 38,000.00101-6006-50102 Salaries - Part Time 61,236.24 79,300.00 80,990.00 32,000.00 -48,990.00101-6006-50200 PERS-City Portion 0.00 200.00 200.00 200.00 0.00101-6006-50210 PERS-Survivor Benefits 65,968.73 118,200.00 118,200.00 110,100.00 -8,100.00101-6006-50221 Medical Insurance 1,174.76 0.00 0.00 0.00 0.00101-6006-50222 Vision Insurance 6,019.03 0.00 0.00 0.00 0.00101-6006-50223 Dental Insurance 336.78 0.00 0.00 0.00 0.00101-6006-50224 Life Insurance 3,639.17 4,800.00 4,800.00 4,000.00 -800.00101-6006-50225 Long Term Disability 11,300.00 16,200.00 16,200.00 9,200.00 -7,000.00101-6006-50230 Workers Comp Insurance 5,125.64 6,400.00 6,400.00 5,300.00 -1,100.00101-6006-50240 Social Security-Medicare 0.00 0.00 2,000.00 0.00 -2,000.00101-6006-50300 Employee Recognition 50 - Salaries and Benefits Totals:507,741.50 715,600.00 733,460.00 619,500.00 -113,960.00 Contract Services 2,700.00 10,000.00 10,000.00 10,000.00 0.00101-6006-60104 Consultants 45,367.44 0.00 0.00 0.00 0.00101-6006-60125 Temporary Agency Services 60 - Contract Services Totals:48,067.44 10,000.00 10,000.00 10,000.00 0.00 Maintenance & Operations 0.00 500.00 500.00 1,000.00 500.00101-6006-60137 Community Special Events 3,161.34 9,600.00 14,600.00 9,600.00 -5,000.00101-6006-60320 Travel & Training 195.00 500.00 500.00 500.00 0.00101-6006-60351 Membership Dues 0.00 1,000.00 1,000.00 1,000.00 0.00101-6006-60352 Subscriptions & Publications 0.00 3,000.00 3,000.00 7,000.00 4,000.00101-6006-60420 Operating Supplies 62 - Maintenance & Operations Totals:3,356.34 14,600.00 19,600.00 19,100.00 -500.00 Internal Service Charges 66,300.00 46,100.00 46,100.00 64,100.00 18,000.00101-6006-98110 Information Tech Charges 13,100.00 0.00 0.00 0.00 0.00101-6006-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:79,400.00 46,100.00 46,100.00 64,100.00 18,000.00 6006 - The Hub Totals:638,565.28 786,300.00 809,160.00 712,700.00 -96,460.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 71 Department : 6006 - The Hub Permanent Full Time 365,700.00101-6006-50101 100% - Management Analyst 100% - Permit Technician (4) 50% - Vacation Rental/License Assistant In FY 2017/18 a Permit Technician position was added. In FY 2018/19 Customer Services Manager was reallocated to City Manager department. The Permit Operations Supervisor was reclassified as a Management Analyst. The Vacation Rental/License Assistant is 50% allocated to Design & Development Administration. Salaries - Part Time 93,000.00101-6006-50102 100% Part-Time Permit Technician 100% Part-Time SQL Writer Increase in FY 2018/19 due to adding Part Time Software Permit Technician. Consultants 10,000.00101-6006-60104 Community Special Events 1,000.00101-6006-60137 Short-Term Vacation Rental Quarterly Meetings with Community Travel & Training 9,600.00101-6006-60320 Amount CRW Administration Training 1,600.00 Permit Technician Training 6,000.00 SunGard Conference (TRAKiT)2,000.00 Membership Dues 500.00101-6006-60351 Amount Building Permit Technician Certification Renewal 200.00 Other Membership Dues 100.00 SunGard Membership (TRAKiT)200.00 Subscriptions & Publications 1,000.00101-6006-60352 Operating Supplies 7,000.00101-6006-60420 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 72 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 7002 - Public Works Development Services Salaries and Benefits 221,007.68 224,500.00 227,340.00 323,100.00 95,760.00101-7002-50101 Permanent Full Time 459.00 500.00 500.00 500.00 0.00101-7002-50150 Other Compensation 47,952.54 58,900.00 59,190.00 31,100.00 -28,090.00101-7002-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00101-7002-50210 PERS-Survivor Benefits 23,121.21 36,400.00 36,400.00 60,100.00 23,700.00101-7002-50221 Medical Insurance 297.18 0.00 0.00 0.00 0.00101-7002-50222 Vision Insurance 2,046.22 0.00 0.00 0.00 0.00101-7002-50223 Dental Insurance 130.82 0.00 0.00 0.00 0.00101-7002-50224 Life Insurance 1,855.90 2,100.00 2,100.00 3,000.00 900.00101-7002-50225 Long Term Disability 6,800.00 5,900.00 5,900.00 5,000.00 -900.00101-7002-50230 Workers Comp Insurance 3,295.72 3,300.00 3,300.00 4,700.00 1,400.00101-7002-50240 Social Security-Medicare 2,295.00 2,400.00 2,400.00 2,400.00 0.00101-7002-50250 Vehicle Reimbursement 4,000.00 0.00 0.00 0.00 0.00101-7002-50300 Employee Recognition 50 - Salaries and Benefits Totals:313,261.27 334,100.00 337,230.00 430,000.00 92,770.00 Contract Services 24,782.00 60,000.00 60,000.00 75,000.00 15,000.00101-7002-60103 Professional Services 0.00 5,000.00 5,000.00 5,000.00 0.00101-7002-60104 Consultants 54,300.50 150,000.00 180,000.00 150,000.00 -30,000.00101-7002-60183 Map/Plan Checking 60 - Contract Services Totals:79,082.50 215,000.00 245,000.00 230,000.00 -15,000.00 Maintenance & Operations 895.00 4,000.00 4,000.00 4,000.00 0.00101-7002-60320 Travel & Training 503.50 700.00 700.00 700.00 0.00101-7002-60351 Membership Dues 0.00 500.00 500.00 500.00 0.00101-7002-60352 Subscriptions & Publications 0.00 500.00 500.00 500.00 0.00101-7002-60410 Printing 101.19 500.00 500.00 1,000.00 500.00101-7002-60420 Operating Supplies 62 - Maintenance & Operations Totals:1,499.69 6,200.00 6,200.00 6,700.00 500.00 Internal Service Charges 38,300.00 16,800.00 16,800.00 35,000.00 18,200.00101-7002-98110 Information Tech Charges 4,700.00 23,100.00 23,100.00 32,600.00 9,500.00101-7002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:43,000.00 39,900.00 39,900.00 67,600.00 27,700.00 7002 - Public Works Development Services Totals:436,843.46 595,200.00 628,330.00 734,300.00 105,970.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 73 Department : 7002 - Public Works Development Services Permanent Full Time 323,100.00101-7002-50101 100% - Associate Engineer (2) 100% - City Engineer In FY 2018/19 an Associate Engineer position was added. The Principal Engineer was reclassified as City Engineer. Professional Services 75,000.00101-7002-60103 Amount 60,000.00National Pollution Discharge Elimination Systems (NPDES) Trash Amendment Study 15,000.00 Consultants 5,000.00101-7002-60104 Amount Project Consulting Services 5,000.00 Map/Plan Checking 150,000.00101-7002-60183 Travel & Training 4,000.00101-7002-60320 Amount APWA Monthly Meeting 200.00 Desert Valley Builders Assoc. Meetings 240.00 Professional Engineer Review Course 3,000.00 Subdivision Map Act Training 300.00 Water Quality/Flood Seminars 260.00 Membership Dues 700.00101-7002-60351 Amount 400.00American Public Works Association (APWA) Board of Civil Engineers License 300.00 Subscriptions & Publications 500.00101-7002-60352 Printing 500.00101-7002-60410 Operating Supplies 1,000.00101-7002-60420 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 74 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 7006 - Engineering Services Salaries and Benefits 382,487.49 426,200.00 436,560.00 517,300.00 80,740.00101-7006-50101 Permanent Full Time 1,262.98 2,000.00 2,000.00 5,300.00 3,300.00101-7006-50105 Salaries - Overtime 17,409.00 19,200.00 19,200.00 21,100.00 1,900.00101-7006-50106 Standby 3,719.79 4,300.00 4,300.00 0.00 -4,300.00101-7006-50107 Standby Overtime 1,277.00 1,500.00 1,500.00 2,000.00 500.00101-7006-50150 Other Compensation 71,153.15 89,600.00 90,460.00 46,100.00 -44,360.00101-7006-50200 PERS-City Portion 0.00 200.00 200.00 200.00 0.00101-7006-50210 PERS-Survivor Benefits 57,084.05 90,900.00 90,900.00 140,200.00 49,300.00101-7006-50221 Medical Insurance 771.65 0.00 0.00 0.00 0.00101-7006-50222 Vision Insurance 4,977.95 0.00 0.00 0.00 0.00101-7006-50223 Dental Insurance 295.25 0.00 0.00 0.00 0.00101-7006-50224 Life Insurance 3,451.10 4,100.00 4,100.00 5,600.00 1,500.00101-7006-50225 Long Term Disability 13,100.00 14,800.00 14,800.00 11,600.00 -3,200.00101-7006-50230 Workers Comp Insurance 5,932.07 6,200.00 6,200.00 7,600.00 1,400.00101-7006-50240 Social Security-Medicare 2,295.00 2,400.00 2,400.00 0.00 -2,400.00101-7006-50250 Vehicle Reimbursement 4,000.00 0.00 0.00 0.00 0.00101-7006-50300 Employee Recognition 50 - Salaries and Benefits Totals:569,216.48 661,400.00 672,620.00 757,000.00 84,380.00 Contract Services 199,900.00 248,000.00 233,000.00 20,000.00 -213,000.00101-7006-60104 Consultants 0.00 300.00 0.00 0.00 0.00101-7006-60128 Vacant Property Dust Control 218,569.50 218,400.00 218,400.00 220,000.00 1,600.00101-7006-60144 Contract Traffic Engineer 31,063.35 5,000.00 70,000.00 70,000.00 0.00101-7006-60145 Traffic Counts/Studies 267,471.01 97,800.00 98,100.00 98,000.00 -100.00101-7006-60146 PM 10 - Dust Control 468,940.91 0.00 0.00 0.00 0.00101-7006-60157 Rental Expense - SRR Fence 60 - Contract Services Totals:1,185,944.77 569,500.00 619,500.00 408,000.00 -211,500.00 Maintenance & Operations 4,974.08 6,500.00 6,500.00 6,500.00 0.00101-7006-60320 Travel & Training 1,091.78 1,100.00 1,100.00 1,100.00 0.00101-7006-60351 Membership Dues 417.60 500.00 500.00 500.00 0.00101-7006-60352 Subscriptions & Publications 0.00 0.00 0.00 1,000.00 1,000.00101-7006-60400 Office Supplies 24.78 5,000.00 3,000.00 4,000.00 1,000.00101-7006-60420 Operating Supplies 342.04 1,000.00 1,000.00 1,000.00 0.00101-7006-60421 Supplies - Software 1,819.23 900.00 2,900.00 2,900.00 0.00101-7006-60427 Safety Gear 62 - Maintenance & Operations Totals:8,669.51 15,000.00 15,000.00 17,000.00 2,000.00 Internal Service Charges 61,900.00 41,900.00 41,900.00 81,500.00 39,600.00101-7006-98110 Information Tech Charges 32,600.00 11,600.00 11,600.00 0.00 -11,600.00101-7006-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:94,500.00 53,500.00 53,500.00 81,500.00 28,000.00 7006 - Engineering Services Totals:1,858,330.76 1,299,400.00 1,360,620.00 1,263,500.00 -97,120.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 75 Department : 7006 - Engineering Services Permanent Full Time 517,300.00101-7006-50101 100% - Construction Inspector (2) 100% - Construction Manager/Inspection Supervisor 100% - Senior Civil Engineer 100% - Traffic Operations Analyst 100% - Traffic Signal Technician (2) In FY 2018/19 a Construction Inspector was added, the Principal Engineer position was reclassifed as a Senior Civil Engineer. In addition, the Traffic Signal Maintenance Supervisor was reclassified as a Traffic Operations Analyst and a Traffic Signal Technician position was added. Consultants 20,000.00101-7006-60104 Amount Small Project Design Services 20,000.00 Decrease in 2018/19 is a result of an Engineering Assessment approved for implementation in 2017/18. PM 10 - Dust Control 98,000.00101-7006-60146 Vacant City land dust control Travel & Training 6,500.00101-7006-60320 Amount 400.00 2,000.00 1,000.00 1,700.00 Coachella Valley APWA Meetings Geographic Info. Systems Training International Signal Assoc Cert Training National Pollutant Discharge Elimination System (NPDES) Prevailing Wage/RE Training/Traffic Signal Control 1,400.00 Membership Dues 1,100.00101-7006-60351 Amount 500.00 300.00 American Public Works Association (APWA) American Society of Civil Engineers Institute of Transportation Engineers (ITE)300.00 Subscriptions & Publications 500.00101-7006-60352 Operating Supplies 4,000.00101-7006-60420 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 76 THIS PAGE INTENTIONALLY LEFT BLANK 77 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1006 - Finance 1,018,008.84 1,123,200.00 1,159,860.00 1,149,400.00 -10,460.00 Salaries and Benefits 684,806.55 866,500.00 898,160.00 874,500.00 -23,660.00 Contract Services 163,073.74 162,000.00 167,000.00 148,000.00 -19,000.00 Maintenance & Operations 23,228.55 27,600.00 27,600.00 34,900.00 7,300.00 Internal Service Charges 146,900.00 67,100.00 67,100.00 92,000.00 24,900.00 1007 - Central Services 6,173,386.27 9,307,300.00 14,779,763.00 9,018,463.00 -5,761,300.00 Salaries and Benefits 168,954.95 436,000.00 1,726,680.00 1,221,900.00 -504,780.00 Maintenance & Operations 382,755.46 195,300.00 195,300.00 206,100.00 10,800.00 Utilities 6,367.35 0.00 0.00 0.00 0.00 Capital Expenses 2,254,676.03 0.00 2,000,000.00 0.00 -2,000,000.00 Internal Service Charges 332,000.00 635,000.00 635,000.00 680,700.00 45,700.00 Transfers Out 3,028,632.48 8,041,000.00 10,222,783.00 6,909,763.00 -3,313,020.00 FISCAL SERVICES TOTAL 7,191,395.11 10,430,500.00 15,939,623.00 10,167,863.00 -5,771,760.00 CITY OF LA QUINTA FISCAL SERVICES SUMMARY OF EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 78 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1006 - Finance Salaries and Benefits 507,540.02 607,100.00 636,380.00 631,300.00 -5,080.00101-1006-50101 Permanent Full Time 675.00 5,400.00 5,400.00 3,100.00 -2,300.00101-1006-50110 Commissions & Boards 599.00 500.00 500.00 500.00 0.00101-1006-50150 Other Compensation 67,578.14 66,700.00 69,080.00 49,600.00 -19,480.00101-1006-50200 PERS-City Portion 0.00 200.00 200.00 200.00 0.00101-1006-50210 PERS-Survivor Benefits 2,385.00 2,400.00 2,400.00 2,400.00 0.00101-1006-50215 Other Fringe Benefits 70,068.97 145,400.00 145,400.00 158,200.00 12,800.00101-1006-50221 Medical Insurance 1,107.32 0.00 0.00 0.00 0.00101-1006-50222 Vision Insurance 4,878.68 0.00 0.00 0.00 0.00101-1006-50223 Dental Insurance 494.42 0.00 0.00 0.00 0.00101-1006-50224 Life Insurance 4,315.66 6,400.00 6,400.00 6,900.00 500.00101-1006-50225 Long Term Disability 17,700.00 23,600.00 23,600.00 13,100.00 -10,500.00101-1006-50230 Workers Comp Insurance 7,459.69 8,800.00 8,800.00 9,200.00 400.00101-1006-50240 Social Security-Medicare 4.65 0.00 0.00 0.00 0.00101-1006-50241 Social Security-FICA 50 - Salaries and Benefits Totals:684,806.55 866,500.00 898,160.00 874,500.00 -23,660.00 Contract Services 16,162.75 30,000.00 10,000.00 10,000.00 0.00101-1006-60102 Administration 50,647.17 68,000.00 73,000.00 37,000.00 -36,000.00101-1006-60103 Professional Services 17,526.67 0.00 20,000.00 36,000.00 16,000.00101-1006-60104 Consultants 53,641.00 64,000.00 64,000.00 65,000.00 1,000.00101-1006-60106 Auditors 25,096.15 0.00 0.00 0.00 0.00101-1006-60125 Temporary Agency Services 60 - Contract Services Totals:163,073.74 162,000.00 167,000.00 148,000.00 -19,000.00 Maintenance & Operations 0.00 500.00 500.00 1,000.00 500.00101-1006-60137 Community Special Events 6,800.60 11,500.00 11,500.00 15,000.00 3,500.00101-1006-60320 Travel & Training 680.00 1,000.00 1,000.00 1,500.00 500.00101-1006-60351 Membership Dues 1,150.00 1,100.00 1,100.00 1,400.00 300.00101-1006-60352 Subscriptions & Publications 4,827.25 5,500.00 5,500.00 5,500.00 0.00101-1006-60400 Office Supplies 8,640.03 7,000.00 7,000.00 9,000.00 2,000.00101-1006-60410 Printing 146.47 0.00 0.00 0.00 0.00101-1006-60420 Operating Supplies 984.20 1,000.00 1,000.00 1,500.00 500.00101-1006-60450 Advertising 62 - Maintenance & Operations Totals:23,228.55 27,600.00 27,600.00 34,900.00 7,300.00 Internal Service Charges 136,000.00 67,100.00 67,100.00 92,000.00 24,900.00101-1006-98110 Information Tech Charges 10,900.00 0.00 0.00 0.00 0.00101-1006-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:146,900.00 67,100.00 67,100.00 92,000.00 24,900.00 1006 - Finance Totals:1,018,008.84 1,123,200.00 1,159,860.00 1,149,400.00 -10,460.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 79 Department : 1006 - Finance Permanent Full Time 631,300.00101-1006-50101 100% - Account Technicians (2) 100% - Accountant 90% - Finance Director 100% - Financial Services Analyst 100% - Junior Accountant 100% - Management Assistant 100% - Senior Accountant In FY 2018/19, 10% of the Finance Director was reallocated to the Housing Fund. Professional Services 37,000.00101-1006-60103 Amount 10,000.00 8,000.00 4,000.00 Annual Budget-at-a-Glance Armored Services OPEB Annual Valuation, Retiree Health Benefits Professional Accounting Support 15,000.00 Consultants 36,000.00101-1006-60104 Amount Property Tax Revenue Analysis 20,000.00 Sales Tax Revenue Analysis 16,000.00 Community Special Events 1,000.00101-1006-60137 Annual Budget Community Workshop Travel & Training 15,000.00101-1006-60320 Amount Annual GASB Update Training (5 staff)600.00 Budget Overview Video Production 1,500.00 CalPERS Conference in Indian Wells (4 staff)2,000.00 CSMFO Conference in Palm Springs (8 Staff)3,500.00 GFOA Certification Training Materials 1,000.00 Tyler Financial Software Training 4,000.00 Various half-day and 1 day classes: CSMFO, GFOA 2,400.00 Membership Dues 1,500.00101-1006-60351 CA Municipal Finance Officers Assoc (CSMFO) CA Municipal Treasurer Assoc (CMTA) Government Finance Officers Assoc (GFOA) Subscriptions & Publications 1,400.00101-1006-60352 Printing 9,000.00101-1006-60410 Accounts Payable & Payroll Checks Budget and Financial Reports Financial Advisory Commission Reports Advertising 1,500.00101-1006-60450 Surplus Sales CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 80 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 1007 - Central Services Salaries and Benefits 138,915.68 120,000.00 120,000.00 140,000.00 20,000.00101-1007-50109 Vacation & Sick Leave Buy Back 0.00 290,000.00 57,280.00 340,000.00 282,720.00101-1007-50115 Contingency for Stafffing 0.00 0.00 1,523,400.00 0.00 -1,523,400.00101-1007-50116 PERS - OPEB Trust Contribution 0.00 0.00 0.00 711,900.00 711,900.00101-1007-50117 PERS - Unfunded Pension Liability 1,947.27 0.00 0.00 0.00 0.00101-1007-50240 Social Security-Medicare 28,092.00 26,000.00 26,000.00 30,000.00 4,000.00101-1007-50243 Employer Contrib Retiree Med PERS 50 - Salaries and Benefits Totals:168,954.95 436,000.00 1,726,680.00 1,221,900.00 -504,780.00 Maintenance & Operations 110.00 200.00 200.00 200.00 0.00101-1007-60351 Membership Dues 3,461.98 2,000.00 2,000.00 2,500.00 500.00101-1007-60401 Operating Supplies 9,255.21 10,000.00 10,000.00 15,000.00 5,000.00101-1007-60402 Forms 6,358.74 9,000.00 9,000.00 11,000.00 2,000.00101-1007-60403 Citywide Conf Room Supplies 2,691.99 0.00 0.00 3,000.00 3,000.00101-1007-60405 Miscellaneous Supplies 911.41 0.00 0.00 0.00 0.00101-1007-60410 Printing 70,600.00 0.00 0.00 0.00 0.00101-1007-60442 Estimated Claims 25,836.26 30,000.00 30,000.00 30,000.00 0.00101-1007-60470 Postage 252,043.04 35,000.00 35,000.00 35,000.00 0.00101-1007-60535 Sales Tax Reimbursements 0.00 100,000.00 100,000.00 100,000.00 0.00101-1007-60536 TOT Resort Rebate Program 10,359.27 8,500.00 8,500.00 9,000.00 500.00101-1007-60661 Postage Machine 1,127.56 600.00 600.00 400.00 -200.00101-1007-60663 Typewriters 62 - Maintenance & Operations Totals:382,755.46 195,300.00 195,300.00 206,100.00 10,800.00 Utilities 6,367.35 0.00 0.00 0.00 0.00101-1007-61301 Mobile/Cell Phones 66 - Utilities Totals:6,367.35 0.00 0.00 0.00 0.00 Capital Expenses 2,254,676.03 0.00 2,000,000.00 0.00 -2,000,000.00101-1007-74010 Land Acquisition 68 - Capital Expenses Totals:2,254,676.03 0.00 2,000,000.00 0.00 -2,000,000.00 Internal Service Charges 245,400.00 449,000.00 449,000.00 458,600.00 9,600.00101-1007-91842 Liability Insurance & Claims 21,900.00 29,000.00 29,000.00 30,000.00 1,000.00101-1007-91843 Property & Crime Insurance 52,000.00 81,000.00 81,000.00 85,000.00 4,000.00101-1007-91844 Earthquake Insurance 0.00 41,900.00 41,900.00 58,200.00 16,300.00101-1007-98110 Information Tech Charges 12,700.00 34,100.00 34,100.00 48,900.00 14,800.00101-1007-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:332,000.00 635,000.00 635,000.00 680,700.00 45,700.00 Transfers Out 3,028,632.48 8,041,000.00 10,222,783.00 6,909,763.00 -3,313,020.00101-1007-99900 Transfers Out 99 - Transfers Out Totals:3,028,632.48 8,041,000.00 10,222,783.00 6,909,763.00 -3,313,020.00 1007 - Central Services Totals:6,173,386.27 9,307,300.00 14,779,763.00 9,018,463.00 -5,761,300.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 81 Department : 1007 - Central Services Contingency for Stafffing 340,000.00101-1007-50115 Staff Development: - Reward Performance - Work within Class and Compensation Structure - Manage PERS Increases - Ensure job rates reflect market rates Membership Dues 200.00101-1007-60351 Sales Tax Reimbursements 35,000.00101-1007-60535 Sales tax sharing agreement - Shovlin (Hobby Lobby) Decrease in 2017/18 due to Costco sales tax agreement expiring TOT Resort Rebate Program 100,000.00101-1007-60536 New program and revenue for FY 17/18 Liability Insurance & Claims 458,600.00101-1007-91842 Increase in 2017/18 due to pending September 2014 flood litigation claims Costs remain higher in 2018/19 because of asset valuation update and additions CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 82 THIS PAGE INTENTIONALLY LEFT BLANK 83 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs Current 17/18 501 - FACILITY & FLEET REPLACEMENT 409,697.64 1,069,300.00 1,079,300.00 923,700.00 (155,600.00) Contract Services 2,000.00 7,000.00 7,000.00 0.00 (7,000.00) Maintenance & Operations 155,191.89 156,000.00 156,000.00 125,000.00 (31,000.00) Insurance 0.00 0.00 10,000.00 12,000.00 2,000.00 Repair & Maintenance 724.52 0.00 0.00 0.00 0.00 Capital Expenses 251,781.23 856,300.00 806,300.00 736,700.00 (69,600.00) Transfers Out 0.00 50,000.00 100,000.00 50,000.00 (50,000.00) 502 - INFORMATION TECHNOLOGY 829,542.53 914,000.00 917,100.00 1,059,700.00 142,600.00 Salaries and Benefits 801.86 70,000.00 73,100.00 67,700.00 (5,400.00) Contract Services 574,312.85 517,000.00 517,000.00 593,000.00 76,000.00 Maintenance & Operations 55,440.29 52,000.00 52,000.00 60,000.00 8,000.00 Utilities 18,165.79 45,000.00 45,000.00 97,000.00 52,000.00 Capital Expenses 180,821.74 230,000.00 230,000.00 242,000.00 12,000.00 503 - PARK EQUIP & FACILITY FUND 576,231.37 670,000.00 757,000.00 675,000.00 (82,000.00) Maintenance & Operations 6,399.54 10,000.00 10,000.00 0.00 (10,000.00) Capital Expenses 569,831.83 660,000.00 747,000.00 675,000.00 (72,000.00) 504 - INSURANCE FUND 604,244.56 969,200.00 972,740.00 921,100.00 (51,640.00) Salaries and Benefits 50,862.56 98,200.00 101,740.00 93,400.00 (8,340.00) Contract Services 0.00 1,700.00 1,700.00 2,300.00 600.00 Maintenance & Operations 0.00 200.00 200.00 200.00 0.00 Insurance 553,382.00 869,100.00 869,100.00 825,200.00 (43,900.00) INTERNAL SERVICES TOTAL 2,419,716.10 3,622,500.00 3,726,140.00 3,579,500.00 (146,640.00) 409,697.64 1,069,300.00 1,079,300.00 923,700.00 (155,600.00) 2,000.00 7,000.00 7,000.00 0.00 (7,000.00) 155,191.89 156,000.00 156,000.00 125,000.00 (31,000.00) 0.00 0.00 10,000.00 12,000.00 2,000.00 724.52 0.00 0.00 0.00 0.00 251,781.23 856,300.00 806,300.00 736,700.00 (69,600.00) 0.00 50,000.00 100,000.00 50,000.00 (50,000.00) 829,542.53 914,000.00 917,100.00 1,059,700.00 142,600.00 801.86 70,000.00 73,100.00 67,700.00 (5,400.00) 574,312.85 517,000.00 517,000.00 593,000.00 76,000.00 55,440.29 52,000.00 52,000.00 60,000.00 8,000.00 18,165.79 45,000.00 45,000.00 97,000.00 52,000.00 180,821.74 230,000.00 230,000.00 242,000.00 12,000.00 576,231.37 670,000.00 757,000.00 675,000.00 (82,000.00) 6,399.54 10,000.00 10,000.00 0.00 (10,000.00) 569,831.83 660,000.00 747,000.00 675,000.00 (72,000.00) 604,244.56 969,200.00 972,740.00 921,100.00 (51,640.00) 50,862.56 98,200.00 101,740.00 93,400.00 (8,340.00) 0.00 1,700.00 1,700.00 2,300.00 600.00 0.00 200.00 200.00 200.00 0.00 553,382.00 869,100.00 869,100.00 825,200.00 (43,900.00) 2,419,716.10 3,622,500.00 3,726,140.00 3,579,500.00 (146,640.00) CITY OF LA QUINTA INTERNAL SERVICE FUNDS SUMMARY OF EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 84 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs. Current 17/18 501 - FACILITY & FLEET REPLACEMENT 0000 - Undesignated 60 - Contract Services 0.00 7,000.00 7,000.00 0.00 (7,000.00)501-0000-60102 Administration 2,000.00 0.00 0.00 0.00 0.00501-0000-60103 Professional Services 60 - Contract Services Totals:2,000.00 7,000.00 7,000.00 0.00 (7,000.00) 62 - Maintenance & Operations 13,313.00 10,000.00 10,000.00 10,000.00 0.00501-0000-60148 Car Washes 0.00 6,000.00 6,000.00 0.00 (6,000.00)501-0000-60448 Vehicle Insurance 47,759.51 60,000.00 60,000.00 50,000.00 (10,000.00)501-0000-60674 Fuel & Oil 19,068.60 10,000.00 10,000.00 10,000.00 0.00501-0000-60675 Parts & Maintenance Supplies 60,879.14 50,000.00 50,000.00 40,000.00 (10,000.00)501-0000-60676 Vehicle Repair & Maintenance 5,464.92 10,000.00 10,000.00 5,000.00 (5,000.00)501-0000-60678 Street Sweeper 8,706.72 10,000.00 10,000.00 10,000.00 0.00501-0000-60679 Motorcycle Repair & Maintenance 62 - Maintenance & Operations Totals:155,191.89 156,000.00 156,000.00 125,000.00 (31,000.00) 63 - Insurance 0.00 0.00 10,000.00 12,000.00 2,000.00501-0000-91843 Property & Crime Insurance 63 - Insurance Totals:0.00 0.00 10,000.00 12,000.00 2,000.00 65 - Repair & Maintenance 724.52 0.00 0.00 0.00 0.00501-0000-60664 Fire Extinguisher Service 65 - Repair & Maintenance Totals:724.52 0.00 0.00 0.00 0.00 68 - Capital Expenses 546.08 30,000.00 30,000.00 20,000.00 (10,000.00)501-0000-71020 Furniture 0.00 170,700.00 170,700.00 210,700.00 40,000.00501-0000-71030 Vehicles, Rentals & Leases 113,429.58 373,000.00 323,000.00 225,000.00 (98,000.00)501-0000-71103 Cvc Ctr Bldg Repl/Repair 35,531.86 18,600.00 18,600.00 25,000.00 6,400.00501-0000-71111 Deprec Exp - Mach & Equip 38,706.72 18,000.00 18,000.00 20,000.00 2,000.00501-0000-71112 Depreciation Expense - Buildings & Im 57,900.71 35,900.00 35,900.00 40,000.00 4,100.00501-0000-71113 Depreciation Expense - Vehicles 5,666.28 3,100.00 3,100.00 4,000.00 900.00501-0000-71114 Depreciation Expense - Motorcycle 0.00 207,000.00 207,000.00 192,000.00 (15,000.00)501-0000-80100 Machinery & Equipment 68 - Capital Expenses Totals:251,781.23 856,300.00 806,300.00 736,700.00 (69,600.00) 99 - Transfers Out 0.00 50,000.00 100,000.00 50,000.00 (50,000.00)501-0000-99900 Transfers Out 99 - Transfers Out Totals:0.00 50,000.00 100,000.00 50,000.00 (50,000.00) 0000 - Undesignated Totals:409,697.64 1,069,300.00 1,079,300.00 923,700.00 (155,600.00) 501 - FACILITY & FLEET REPLACEMENT Totals:409,697.64 1,069,300.00 1,079,300.00 923,700.00 (155,600.00) 0.00 7,000.00 7,000.00 0.00 (7,000.00) 2,000.00 0.00 0.00 0.00 0.00 2,000.00 7,000.00 7,000.00 0.00 (7,000.00) 13,313.00 10,000.00 10,000.00 10,000.00 0.00 0.00 6,000.00 6,000.00 0.00 (6,000.00) 47,759.51 60,000.00 60,000.00 50,000.00 (10,000.00) 19,068.60 10,000.00 10,000.00 10,000.00 0.00 60,879.14 50,000.00 50,000.00 40,000.00 (10,000.00) 5,464.92 10,000.00 10,000.00 5,000.00 (5,000.00) 8,706.72 10,000.00 10,000.00 10,000.00 0.00 155,191.89 156,000.00 156,000.00 125,000.00 (31,000.00) 0.00 0.00 10,000.00 12,000.00 2,000.00 0.00 0.00 10,000.00 12,000.00 2,000.00 724.52 0.00 0.00 0.00 0.00 724.52 0.00 0.00 0.00 0.00 546.08 30,000.00 30,000.00 20,000.00 (10,000.00) 0.00 170,700.00 170,700.00 210,700.00 40,000.00 113,429.58 373,000.00 323,000.00 225,000.00 (98,000.00) 35,531.86 18,600.00 18,600.00 25,000.00 6,400.00 38,706.72 18,000.00 18,000.00 20,000.00 2,000.00 57,900.71 35,900.00 35,900.00 40,000.00 4,100.00 5,666.28 3,100.00 3,100.00 4,000.00 900.00 0.00 207,000.00 207,000.00 192,000.00 (15,000.00) 251,781.23 856,300.00 806,300.00 736,700.00 (69,600.00) 0.00 50,000.00 100,000.00 50,000.00 (50,000.00) 0.00 50,000.00 100,000.00 50,000.00 (50,000.00) 409,697.64 1,069,300.00 1,079,300.00 923,700.00 (155,600.00) 409,697.64 1,069,300.00 1,079,300.00 923,700.00 (155,600.00) CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 85 Fund: 501 - FACILITY & FLEET REPLACEMENT Vehicles, Rentals & Leases 210,700.00501-0000-71030 5 new vehicle leases in 2018/19 Cvc Ctr Bldg Repl/Repair 225,000.00501-0000-71103 Amount East Wing Renovation at City Hall 100,000.00 HVAC System Control at Wellness Center 25,000.00 Wellness Center Multi-Purpose Room Upgrades 100,000.00 Machinery & Equipment 192,000.00501-0000-80100 Backhoe, large lift dump, and stump grinder CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 86 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs. Current 17/18 502 - INFORMATION TECHNOLOGY 0000 - Undesignated 50 - Salaries and Benefits 606.91 47,000.00 49,820.00 50,400.00 580.00502-0000-50101 Permanent Full Time 0.00 300.00 300.00 300.00 0.00502-0000-50150 Other Compensation 61.36 12,300.00 12,580.00 5,400.00 (7,180.00)502-0000-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00502-0000-50210 PERS-Survivor Benefits 104.91 9,100.00 9,100.00 10,100.00 1,000.00502-0000-50221 Medical Insurance 1.33 0.00 0.00 0.00 0.00502-0000-50222 Vision Insurance 11.51 0.00 0.00 0.00 0.00502-0000-50223 Dental Insurance 0.50 0.00 0.00 0.00 0.00502-0000-50224 Life Insurance 6.54 500.00 500.00 600.00 100.00502-0000-50225 Long Term Disability 8.80 700.00 700.00 800.00 100.00502-0000-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:801.86 70,000.00 73,100.00 67,700.00 (5,400.00) 60 - Contract Services 197,885.45 187,000.00 187,000.00 248,000.00 61,000.00502-0000-60104 Consultants 59,287.52 70,000.00 50,000.00 0.00 (50,000.00)502-0000-60108 Technical 23,597.10 0.00 0.00 0.00 0.00502-0000-60125 Temporary Agency Services 1,862.94 0.00 0.00 0.00 0.00502-0000-60213 Interest Expense 60,353.00 60,000.00 60,000.00 5,000.00 (55,000.00)502-0000-60300 Maintenance Agreements 209,126.32 200,000.00 200,000.00 300,000.00 100,000.00502-0000-60301 Software Licenses 22,200.52 0.00 20,000.00 40,000.00 20,000.00502-0000-61400 Utilities - Cable 60 - Contract Services Totals:574,312.85 517,000.00 517,000.00 593,000.00 76,000.00 62 - Maintenance & Operations 160.00 0.00 0.00 0.00 0.00502-0000-60122 Credit Card Fee 882.29 1,000.00 1,000.00 5,000.00 4,000.00502-0000-60420 Operating Supplies 475.00 0.00 0.00 0.00 0.00502-0000-60421 Supplies - Software 53,923.00 51,000.00 51,000.00 55,000.00 4,000.00502-0000-60662 Copiers 62 - Maintenance & Operations Totals:55,440.29 52,000.00 52,000.00 60,000.00 8,000.00 66 - Utilities 0.00 45,000.00 25,000.00 53,000.00 28,000.00502-0000-61300 Utilities - Telephone 18,165.79 0.00 20,000.00 44,000.00 24,000.00502-0000-61301 Cell/Mobile Phones 66 - Utilities Totals:18,165.79 45,000.00 45,000.00 97,000.00 52,000.00 68 - Capital Expenses 0.00 30,000.00 30,000.00 50,000.00 20,000.00502-0000-71042 Software Enhancements, D & D 0.00 41,000.00 41,000.00 30,000.00 (11,000.00)502-0000-71043 Software Enhancements, Comm. Reso 0.00 12,000.00 12,000.00 7,000.00 (5,000.00)502-0000-71045 Software Enhancements, Finance 0.00 22,000.00 22,000.00 25,000.00 3,000.00502-0000-71047 Software Enhancements, City Clerk 20,216.79 50,000.00 50,000.00 55,000.00 5,000.00502-0000-71110 Depreciation Expense 72,504.37 0.00 0.00 0.00 0.00502-0000-71111 Deprec Exp - Mach & Equip 55,102.74 0.00 0.00 0.00 0.00502-0000-71115 Depreciation Expense - Software 12,672.85 0.00 0.00 25,000.00 25,000.00502-0000-80100 Machinery & Equipment 20,324.99 75,000.00 75,000.00 50,000.00 (25,000.00)502-0000-80103 Computers 68 - Capital Expenses Totals:180,821.74 230,000.00 230,000.00 242,000.00 12,000.00 0000 - Undesignated Totals:829,542.53 914,000.00 917,100.00 1,059,700.00 142,600.00 502 - INFORMATION TECHNOLOGY Totals:829,542.53 914,000.00 917,100.00 1,059,700.00 142,600.00 606.91 47,000.00 49,820.00 50,400.00 580.00 0.00 300.00 300.00 300.00 0.00 61.36 12,300.00 12,580.00 5,400.00 (7,180.00) 0.00 100.00 100.00 100.00 0.00 104.91 9,100.00 9,100.00 10,100.00 1,000.00 1.33 0.00 0.00 0.00 0.00 11.51 0.00 0.00 0.00 0.00 0.50 0.00 0.00 0.00 0.00 6.54 500.00 500.00 600.00 100.00 8.80 700.00 700.00 800.00 100.00 801.86 70,000.00 73,100.00 67,700.00 (5,400.00) 197,885.45 187,000.00 187,000.00 248,000.00 61,000.00 59,287.52 70,000.00 50,000.00 0.00 (50,000.00) 23,597.10 0.00 0.00 0.00 0.00 1,862.94 0.00 0.00 0.00 0.00 60,353.00 60,000.00 60,000.00 5,000.00 (55,000.00) 209,126.32 200,000.00 200,000.00 300,000.00 100,000.00 22,200.52 0.00 20,000.00 40,000.00 20,000.00 574,312.85 517,000.00 517,000.00 593,000.00 76,000.00 160.00 0.00 0.00 0.00 0.00 882.29 1,000.00 1,000.00 5,000.00 4,000.00 475.00 0.00 0.00 0.00 0.00 53,923.00 51,000.00 51,000.00 55,000.00 4,000.00 55,440.29 52,000.00 52,000.00 60,000.00 8,000.00 0.00 45,000.00 25,000.00 53,000.00 28,000.00 18,165.79 0.00 20,000.00 44,000.00 24,000.00 18,165.79 45,000.00 45,000.00 97,000.00 52,000.00 0.00 30,000.00 30,000.00 50,000.00 20,000.00 0.00 41,000.00 41,000.00 30,000.00 (11,000.00) 0.00 12,000.00 12,000.00 7,000.00 (5,000.00) 0.00 22,000.00 22,000.00 25,000.00 3,000.00 20,216.79 50,000.00 50,000.00 55,000.00 5,000.00 72,504.37 0.00 0.00 0.00 0.00 55,102.74 0.00 0.00 0.00 0.00 12,672.85 0.00 0.00 25,000.00 25,000.00 20,324.99 75,000.00 75,000.00 50,000.00 (25,000.00) 180,821.74 230,000.00 230,000.00 242,000.00 12,000.00 829,542.53 914,000.00 917,100.00 1,059,700.00 142,600.00 829,542.53 914,000.00 917,100.00 1,059,700.00 142,600.00 CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 87 Fund: 502 - INFORMATION TECHNOLOGY Permanent Full Time 50,400.00502-0000-50101 50% - Management Analyst In FY 2018/19 the Community Resources Manager position was removed and 50% of the Management Analyst was added. Consultants 248,000.00502-0000-60104 Information technology services are contracted Operating Supplies 5,000.00502-0000-60420 Software Enhancements, D & D 50,000.00502-0000-71042 Amount 2,500.00 37,500.00 AutoCad Licenses Short-Term Vacation Rental Customization TRAKiT System Upgrades 10,000.00 Software Enhancements, Comm. Resources 30,000.00502-0000-71043 Amount Cloud Based Systems 30,000.00 Software Enhancements, Finance 7,000.00502-0000-71045 Amount Position Budgeting Tyler Application 5,000.00 Scanners for Tyler 2,000.00 Software Enhancements, City Clerk 25,000.00502-0000-71047 Amount 23,000.00LaserFiche System Upgrades Scanners for LaserFiche 2,000.00 Machinery & Equipment 25,000.00502-0000-80100 Skype Phones CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 88 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs. Current 17/18 503 - PARK EQUIP & FACILITY FUND 0000 - Undesignated 62 - Maintenance & Operations 6,399.54 10,000.00 10,000.00 0.00 (10,000.00)503-0000-60680 Fritz Burns Pool 62 - Maintenance & Operations Totals:6,399.54 10,000.00 10,000.00 0.00 (10,000.00) 68 - Capital Expenses 45,108.18 160,000.00 247,000.00 150,000.00 (97,000.00)503-0000-71060 Parks 524,723.65 500,000.00 500,000.00 525,000.00 25,000.00503-0000-71122 Depreciation Expense - Community S 68 - Capital Expenses Totals:569,831.83 660,000.00 747,000.00 675,000.00 (72,000.00) 0000 - Undesignated Totals:576,231.37 670,000.00 757,000.00 675,000.00 (82,000.00) 503 - PARK EQUIP & FACILITY FUND Totals:576,231.37 670,000.00 757,000.00 675,000.00 (82,000.00) 6,399.54 10,000.00 10,000.00 0.00 (10,000.00) 6,399.54 10,000.00 10,000.00 0.00 (10,000.00) 45,108.18 160,000.00 247,000.00 150,000.00 (97,000.00) 524,723.65 500,000.00 500,000.00 525,000.00 25,000.00 569,831.83 660,000.00 747,000.00 675,000.00 (72,000.00) 576,231.37 670,000.00 757,000.00 675,000.00 (82,000.00) 576,231.37 670,000.00 757,000.00 675,000.00 (82,000.00) CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 89 Fund: 503 - PARK EQUIP & FACILITY FUND Parks 150,000.00503-0000-71060 Amount Ballard Lighting 30,000.00 Desert Pride Playground Equipment 40,000.00 La Quinta Park Restrooms 20,000.00 Monticello Playground Equipment 60,000.00 CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 90 2016/17 Actual Expenses 2017/18 Original Budget 2017/18 Current Budget 2018/19 Proposed Budget 18/19 vs. Current 17/18 504 - INSURANCE FUND 1010 - Insurance 50 - Salaries and Benefits 34,240.90 64,700.00 66,640.00 68,200.00 1,560.00504-1010-50101 Permanent Full Time 0.00 500.00 500.00 200.00 (300.00)504-1010-50150 Other Compensation 7,318.66 17,000.00 17,600.00 7,300.00 (10,300.00)504-1010-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00504-1010-50210 PERS-Survivor Benefits 6,955.62 13,600.00 13,600.00 15,100.00 1,500.00504-1010-50221 Medical Insurance 157.90 0.00 0.00 0.00 0.00504-1010-50222 Vision Insurance 298.28 0.00 0.00 0.00 0.00504-1010-50223 Dental Insurance 33.13 0.00 0.00 0.00 0.00504-1010-50224 Life Insurance 361.74 1,400.00 1,400.00 1,500.00 100.00504-1010-50225 Long Term Disability 1,000.00 0.00 0.00 0.00 0.00504-1010-50230 Workers Comp Insurance 496.33 900.00 900.00 1,000.00 100.00504-1010-50240 Social Security-Medicare 0.00 0.00 1,000.00 0.00 (1,000.00)504-1010-50300 Employee Recognition 50 - Salaries and Benefits Totals:50,862.56 98,200.00 101,740.00 93,400.00 (8,340.00) 60 - Contract Services 0.00 1,400.00 1,400.00 2,000.00 600.00504-1010-60320 Travel & Training 0.00 200.00 200.00 200.00 0.00504-1010-60351 Membership Dues 0.00 100.00 100.00 100.00 0.00504-1010-60352 Subscriptions & Publications 60 - Contract Services Totals:0.00 1,700.00 1,700.00 2,300.00 600.00 62 - Maintenance & Operations 0.00 200.00 200.00 200.00 0.00504-1010-60400 Office Supplies 62 - Maintenance & Operations Totals:0.00 200.00 200.00 200.00 0.00 63 - Insurance 226,309.00 448,500.00 448,500.00 463,400.00 14,900.00504-1010-60441 Liability Insurance 0.00 25,000.00 0.00 0.00 0.00504-1010-60442 Claims 59,691.00 90,000.00 90,000.00 108,000.00 18,000.00504-1010-60443 Property Insurance 3,366.00 3,600.00 3,600.00 3,400.00 (200.00)504-1010-60446 Crime Insurance 70,032.00 81,000.00 106,000.00 101,900.00 (4,100.00)504-1010-60447 Earthquake Insurance 193,984.00 221,000.00 221,000.00 148,500.00 (72,500.00)504-1010-60452 Workers Comp Premium 63 - Insurance Totals:553,382.00 869,100.00 869,100.00 825,200.00 (43,900.00) 1010 - Insurance Totals:604,244.56 969,200.00 972,740.00 921,100.00 (51,640.00) 504 - INSURANCE FUND Totals:604,244.56 969,200.00 972,740.00 921,100.00 (51,640.00) 34,240.90 64,700.00 66,640.00 68,200.00 1,560.00 0.00 500.00 500.00 200.00 (300.00) 7,318.66 17,000.00 17,600.00 7,300.00 (10,300.00) 0.00 100.00 100.00 100.00 0.00 6,955.62 13,600.00 13,600.00 15,100.00 1,500.00 157.90 0.00 0.00 0.00 0.00 298.28 0.00 0.00 0.00 0.00 33.13 0.00 0.00 0.00 0.00 361.74 1,400.00 1,400.00 1,500.00 100.00 1,000.00 0.00 0.00 0.00 0.00 496.33 900.00 900.00 1,000.00 100.00 0.00 0.00 1,000.00 0.00 (1,000.00) 50,862.56 98,200.00 101,740.00 93,400.00 (8,340.00) 0.00 1,400.00 1,400.00 2,000.00 600.00 0.00 200.00 200.00 200.00 0.00 0.00 100.00 100.00 100.00 0.00 0.00 1,700.00 1,700.00 2,300.00 600.00 0.00 200.00 200.00 200.00 0.00 0.00 200.00 200.00 200.00 0.00 226,309.00 448,500.00 448,500.00 463,400.00 14,900.00 0.00 25,000.00 0.00 0.00 0.00 59,691.00 90,000.00 90,000.00 108,000.00 18,000.00 3,366.00 3,600.00 3,600.00 3,400.00 (200.00) 70,032.00 81,000.00 106,000.00 101,900.00 (4,100.00) 193,984.00 221,000.00 221,000.00 148,500.00 (72,500.00) 553,382.00 869,100.00 869,100.00 825,200.00 (43,900.00) 604,244.56 969,200.00 972,740.00 921,100.00 (51,640.00) 604,244.56 969,200.00 972,740.00 921,100.00 (51,640.00) CITY OF LA QUINTA GENERAL FUND EXPENSES BY DIVISION 2018/19 PROPOSED BUDGET 91 Fund: 504 - INSURANCE FUND Permanent Full Time 68,200.00504-1010-50101 50% - Deputy City Clerk 25% - City Clerk Travel & Training 2,000.00504-1010-60320 Membership Dues 200.00504-1010-60351 Subscriptions & Publications 100.00504-1010-60352 Liability Insurance 463,400.00504-1010-60441 Increase due to pending September 2014 flood litigation claims Costs remain higher in 2018/19 because of asset valuation update and additions Property Insurance 108,000.00504-1010-60443 Increase due to city-wide evaluation and reconciliation of property CITY OF LA QUINTA EXPENSE NOTES 2018/19 PROPOSED BUDGET 92 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: May 9, 2018 STAFF REPORT AGENDA TITLE: REVIEW THE CITY’S GENERAL FUND BALANCE AND RESERVES POLICY RECOMMENDATION Review the City’s General Fund Balance and Reserves Policy (Policy) and recommend for Council approval. EXECUTIVE SUMMARY •Council requested an analysis of the City’s reserves by the Financial Advisory Commission (FAC). •A subcommittee of FAC members and staff prepared a Reserve Policy Analysis Report (Report). •The Report was presented during two Council meeting study sessions on February 6 and April 3, 2018. The resulting Policy incorporates the recommendations and directives of the FAC and City Council. FISCAL IMPACT – None. BACKGROUND 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; and •City infrastructure and vulnerability to extreme events. As a result of multiple meetings, the final Reserve Analysis Report and the Policy have been written. Following the guidance of the FAC and Council, the policy establishes the reserve categories and the target funding. BUSINESS SESSION ITEM NO. 1 Upon adoption of the Policy, the reserve categories and initial funding will be established. Staff is providing the initial funding scenario for review: ALTERNATIVES The FAC may approve as presented, incorporate changes, or request further review. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director Attachment 1: General Fund Balance and Reserve Policy Attachment 2: Reserve Policy Analysis Report Category Current Funding Targets Initial Funding Percent of Target Funded Emergency Reserve Natural Disast 16,534,000 10,000,000 7,400,000 74.00% Emergency Reserve Economic 11,000,000 8,140,000 74.00% Cash Flow 4,134,000 5,000,000 5,000,000 100.00% Capital Replacement 10,000,000 5,000,000 50.00% Pension Trust 10,000,000 2,000,000 20.00% Total Reserves 20,668,000 46,000,000 27,540,000 59.87% Unassigned Fund Balance 14,865,926 7,993,926 99.92% Land Acquisition Account 2,000,000 2,000,000 1 City of La Quinta General Fund Balance and Reserves Policy I. Purpose. This is the General Fund Balance and Reserves Policy (Policy) of the City of La Quinta (City); it defines the City’s fund balance and reserve categories, identifies the need for reserves, and outlines the importance of maintaining the integrity of uses and funding amounts. The Policy also guides the City Council and staff when planning for contingencies, supports the City’s credit rating, and ensures cash availability. This Policy aligns with the organization’s values - fiscal responsibility, maintaining a safe community, fostering a thriving economy, continuous transparency and accountability, and enhancing our Citizen’s quality of life. It also aligns with the City’s budgetary guiding principles - one-time revenues should not be utilized for on-going expenditures; instead, they should be deposited into reserves or appropriated for one- time expenditures. Additionally, allocations for capital improvements, equipment replacement, and infrastructure investment should be part of the annual budget process through appropriations to Internal Service Funds. II. Scope. This Policy was created after comprehensive research and analysis. The City’s 10-year financial projection model was employed to identify annual funding levels, and the Government Finance Officer Association’s (GFOA) structured assessment model was used to analyze the degree to which the City is vulnerable to specific risk factors such as extreme events, revenue and expenditure volatility, leverage, liquidity, and growth. These financial forecasting tools will continue to be utilized to monitor reserve levels and assess future reserve adjustment recommendations. III.Definitions. The Government Accounting Standards Board (GASB) Statement No. 54 defines fund balance as follows: Nonspendable Fund Balance: The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long-term amount of loans and notes receivable, as well as property acquired for resale. Restricted Fund Balance: Amounts that are restricted to specific purposes should be reported as restricted fund balance. Fund balance should be reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, ATTACHMENT 1 2 contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance: Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government‘s highest level of decision-making authority should be reported as committed fund balance. Those committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action (for example, legislation, resolution, ordinance) it employed to previously commit those amounts. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. Assigned Fund Balance: Amounts that are constrained by the government‘s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. Intent should be expressed by (a) the governing body itself or (b) a body or official to which the governing body has delegated the authority to assign amounts to be used for specific purposes. The nature of the actions necessary to remove or modify an assignment is not as prescriptive as it is with regard to the committed fund balance classification. Constraints imposed on the use of assigned amounts are more easily removed or modified than those imposed on amounts that are classified as committed. Unassigned Fund Balance: Unassigned fund balance is the residual classification for the General Fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. The General Fund should be the only fund that reports a positive unassigned fund balance amount. IV. City’s Reserve Categories and Targets Committed, assigned, and unassigned fund balance categories combined make up the “unrestricted” fund balance, which is the total amount that is either unconstrained or the constraints are self-imposed and can be modified by Council. As such, the following reserve categories would be classified as committed or assigned (with the exception of the pension reserves, which once placed in trust would be reported as a Fiduciary Fund), and the remaining unassigned fund balance would be available for appropriation. Targets have been established for each category and will be periodically reviewed to ensure adequate levels. 3 Natural Disaster Emergency Reserves: May be utilized for the preparation, recovery, and restoration of services before, during and/or after a natural disaster (such as flood, earthquake, etc.) as defined by City Code §2.20.020. The target is $10,000,000 and will be reviewed every five (5) years by conducting a risk analysis of all City assets, insurance levels, and potential federal/state contributions towards disaster recovery efforts. Economic Downturn Reserves: May be used in such instances as a declared national, state, or regional recession; loss of a major (top 10) revenue- generating business; or a natural disaster resulting in a significant decline in revenues. These reserves may also be used if overall revenues decrease or expenses increase by more than 10% of the previous year’s actual revenues or expenditures. The target is $11,000,000, based on a 10-year analysis of the revenue and expenditure flows (which included the financial impacts of the Great Recession). The target will be evaluated again in the event of another significant economic downturn. Cash Flow Reserves: This reserve category is maintained to have adequate cash on hand to account for the uneven receipt of revenue. For example, property tax accounts for a large percentage of annual revenue, the bulk of which is not remitted until December and May of each year. The target is $5,000,000 and will be determined annually by analyzing the prior fiscal year by month and calculating the largest cumulative deficit between revenues and expenditures, with a minimum expectation of approximately 10% of operating expenditures reserved. Capital Improvement Reserves: This category will fund capital assets and infrastructure rehabilitation, improvement, and replacement. The target is $10,000,000 and is based on annual depreciation of assets. Unfunded Pension Liability: This reserve will be maintained in an irrevocable trust and may be used to fund future pension obligations such as annual pension fund payments, unfunded pension liability payments, and/or any additional contributions to pay down the unfunded liability. The target is $10,000,000 and will be reviewed annually as CalPERS updates their actuarial reports, which outline the City’s unfunded pension liability and annual contributions. 4 V. Unassigned Fund Balance. The City will maintain a minimum of $8,000,000 in unassigned fund balance which could fund one-time expenditures or capital expenses at the City Council’s discretion. VI. Authority Over Reserves. At Council direction, reserves may be utilized for their intended purpose as defined herein. The Policy may be amended by Council resolution and requires a 4/5th approval (“supermajority”). VII. Building to Target and Replenishments. City Council adoption of this Policy will establish these reserve categories and the funding targets. Going forward, the City Council shall annually review each reserve category and funding level during the mid- year budget process, once the annual financial statements are published and final fund balances are known. Funds will generally come from excess revenues over expenditures, one-time revenues, or specific departmental savings over budgeted expenditures, and may be allocated to each reserve category as directed by Council until the target level is reached. Once all targets are reached, funds would remain in the unassigned fund balance. Likewise, upon use of any reserves, the categories will be replenished back to target in a similar manner. City of La Quinta Reserve Policy Analysis Report Financial Advisory Commission Reserve Policy Subcommittee May 2018 ATTACHMENT 2 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 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 independently and with City Finance Staff on multiple 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 interim recommendations were reviewed and approved by the FAC on November 15, 2017. An updated Report was presented to the FAC on April 11, 2018. Additionally, the report was presented at City Council meetings on February 6 and April 3, 2018. 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. Utilize the comprehensive Asset/Risk/Insurance/Government Funding Study (Study), to set this reserve level. 2 iii. Establish an Asset Management Program as part of this Study to better track, maintain and replace assets and develop a long-term Capital Improvement Program (CIP). iv. Set at $10 million and fund existing reserves. 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. Capital Replacement Reserve. Set at $10 million and fund with $1.0 million annually. 6. 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 Reserve/Trust Reserve Target Current Funding Over/(Under) Funded Annual Target Emergency Reserve Natural Disaster 10,000,000 16,534,000 6,534,000 1,500,000 Economic Disaster 11,000,000 - (11,000,000) 1,000,000 Total 21,000,000 16,534,000 (4,466,000) 2,500,000 Cash Flow Reserve 5,000,000 4,134,000 (866,000) - Capital Replacement 10,000,000 - (10,000,000) 1,000,000 Total Reserves 36,000,000 20,668,000 (15,332,000) 3,500,000 Pension Trust Fund 10,000,000 - (10,000,000) 1,000,000 Unassigned Reserves - 14,865,926 14,865,926 - Overall Total 46,000,000 35,533,926 (10,466,074) 4,500,000 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 2.2 Current Reserve Policy The current Reserve Policy includes the following Fund Balance 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 Current General Fund Reserve/Fund Balances Table 2 - General Fund Reserve/Fund Balances 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 14,865,926 TOTAL FUND BALANCE 105,378,873 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 an 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 -$58.8 million at the end of the ten-year period (Exhibit 1) or a deficit of -$88.7 million (Exhibit 2). After the Additional Revenue Sources are applied and $3 million a year for capital improvements are accounted for, there is a cumulative +$24.1 million Revenues/Expenditure surplus (Exhibit 1) or -$5.7 million deficit (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 the next five years (Exhibit 1). However, if annual Police Contract increases escalate to 10% year-over-year, the available funding is reduced to an average of $4 million annually over the next five years (Exhibit 2). In addition to the projected Ten-Year surplus (Exhibit 1), as of June 30, 2017the city had 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 evaluate reserve funding options. 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 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 required the following analysis: 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? The City conducted a comprehensive Asset/Insurance/Government Funding Study (Study) analyzing these four items. Exhibit 4 summarizes the results from the Study. The City’s insured assets total $366 million. In an emergency, individual assets with insurance coverage do not qualify for federal or state reimbursement. Furthermore, federal reimbursement is limited to 75% and state reimbursement is limited to 18.75% of total expenditures. Based on current insurance coverage the potential city liability could be $19.2 million. Assets that are not covered by insurance or government natural disaster funding are depicted in the column labeled require 100% reserve funding. Non-critical assets require 50% reserve funding for a total recommended reserve of $10 million. Recommendation: Establish an Asset Management Program to expand on the Study to better track, maintain and replace assets and develop long-term Capital Improvement Program (CIP). Recommendation: Fund this reserve initially with the current Emergency Reserve balance. 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, on the following page, (Long-Term Economic History) plots Revenue, Expenditures and Net Income adjusted for inflation during this period. 10 The Net Income line is the key data as this gives a good indication of the financial health of the City in any given year. A linear regression line was applied to the Net Income data to establish the normalized level of Net Income for this Seven-Year 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 allow 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 Capital Replacement 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 Capital Replacement Reserve to set aside funds to supplement funding gaps. Recommendation: Set Capital Replacement 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 Pension Trust, set a $10 million target, and fund with $1.0 million annually as a General Fund Expense. 14 Appendix 15 List of Exhibits Exhibit 1–Ten-Year Financial Projection with an 8% Increase in Police Service Contract Exhibit 2–Ten-Year Financial Projection with a 10% Increase in Police Service Contract Exhibit 3–FY 2016/17 CAFR Page 47-Capital Assets Exhibit 4 – Summary of All Insured City Assets City of La Quinta As of March 23 2018ActualGrowthAdjusted Budget2018/19 to 2027/282016/17 Projections 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28TOTAL1. Cash ReceiptsSales Tax - Bradley Burns8,597,655$ 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 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 4,705,974 4,800,093 4,896,095 4,994,017 5,093,898 5,195,776 5,299,691 5,405,685 5,513,799 5,624,075 51,529,102 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 1,219,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 8,595,000 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%363,816 605,238 617,343 629,690 642,283 655,129 668,232 681,596 695,228 709,133 723,315 6,627,187 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 $45,250,734 $46,399,334 $48,712,138 $51,198,930 $53,817,838 $56,540,572 $59,361,639 $62,396,279 $65,631,870 $69,083,241 $558,392,5755. Yearly Operating Cash Position(2 minus 4) 717,556 (93,200) (1,820,278) (1,580,997) (2,287,511) (2,634,774) (3,871,656) (5,767,193) (7,239,191) (8,962,168) (11,143,352) (13,513,844) (58,820,964)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)$2,180,206 7,906,800$ 6,600,390$ 6,923,878$ 6,302,412$ 6,041,049$ 4,890,925$ 3,083,014$ 1,699,517$ 65,928$ (2,024,975)$ (4,304,284)$ 29,277,854$ 8. Measure G UsesPolice Services Contract ᶜ100,000 - Capital Expenses990,873 4,969,464 3,731,561 3,859,103 3,764,599 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,00032,355,263 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$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 32,355,263$ 10. Cash Position After Measure G Uses(7 minus 9)717,556 2,206,836 2,868,829 3,064,775 2,537,813 3,041,049 1,890,925 83,014 (1,300,483) (2,934,072) (5,024,975) (7,304,284) (3,077,409) 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$ 5,359,282$ 5,605,037$ 5,128,879$ 5,683,937$ 4,586,671$ 2,832,675$ 1,504,171$ (73,325)$ (2,107,013)$ (4,327,963)$ 24,192,351$ 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 facilityFY 21/22 & beyond CIP TBDMEASURE G SALES TAX BUDGETRDA LOANRDA loan repayments end in 29/30. Additional revenue totals $5,784,105. EXHBIT 1 City of La Quinta As of March 23, 2018ActualGrowthAdjusted Budget2018/19 to 2027/282016/17 Projections 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28TOTAL1.Cash ReceiptsSales Tax - Bradley Burns8,597,655$ 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 4,705,974 4,800,093 4,896,095 4,994,017 5,093,898 5,195,776 5,299,691 5,405,685 5,513,799 5,624,075 51,529,102 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 1,219,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 8,595,000 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%363,816 605,238 617,343 629,690 642,283 655,129 668,232 681,596 695,228 709,133 723,315 6,627,187 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 $45,568,316 $47,091,663 $49,844,127 $52,844,180 $56,059,679 $59,473,230 $63,091,526 $67,043,434 $71,331,563 $75,987,751 $588,335,4695.Yearly Operating Cash Position(2 minus 4) 717,556 (93,200) (2,137,860) (2,273,326) (3,419,501) (4,280,024) (6,113,498) (8,699,851) (10,969,078) (13,609,323) (16,843,045) (20,418,354) (88,763,859)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)$2,180,206 7,906,800$ 6,282,808$ 6,231,549$ 5,170,423$ 4,395,799$ 2,649,083$ 150,356$ (2,030,370)$ (4,581,227)$ (7,724,668)$ (11,208,793)$ (665,041)$ 8.Measure G UsesPolice Services Contract ᶜ100,000 - Capital Expenses990,873 4,969,464 3,731,561 3,859,103 3,764,599 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,00032,355,263 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$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 32,355,263$ 10.Cash Position After Measure G Uses(7 minus 9)717,556 2,206,836 2,551,247 2,372,446 1,405,824 1,395,799 (350,917) (2,849,644) (5,030,370) (7,581,227) (10,724,668) (14,208,793) (33,020,304) 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$ 5,041,700$ 4,912,708$ 3,996,890$ 4,038,687$ 2,344,829$ (99,983)$ (2,225,716)$ (4,720,480)$ (7,806,706)$ (11,232,473)$ (5,750,544)$ The 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 facilityFY 21/22 & beyond CIP TBDRDA 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 $300,000 in 18/19 due one-time revenue in 17/18 and lower administrative reimbursements from Redevelopment dissolution resulting from an approved last and final repayment schedule. c - SilverRock Resort Net Revenue includes revenue derived from sales tax, property tax, transient occupancy tax and development fees. d - Police and Fire services are provided by the County of Riverside and subject to the County's annual budget for services. e - Maintenance and operations includes utilities and internal services charges. f - Capital expenses for 16/17 included the Eisenhower Drive retention basin land purchase. Ongoing projections include minimum capital funding for street and sidewalk improvements required to secure Measure A and Gas Tax funding. g - Transfers Out support the Gas Tax Fund for street improvements, the Landscape and Lighting District, and SilverRock golf course. A decrease in 19/20 is anticipated due to the scheduled disposition of SilverRock. h - PERS unfunded pension liability projections are based on CalPERS actuarial valuations as of June 30, 2016. GENERAL FUND FINANCIAL PROJECTIONSOPERATING BUDGETMEASURE G SALES TAX BUDGETRDA LOANEXHIBIT 2 CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2017 47 NOTE 4: CAPITAL ASSETS Capital asset activity for governmental activities for the year ended June 30, 2017, is as follows: Beginning Ending Balance at Balance at July 1, 2016 Additions Deletions Transfers June 30, 2017 Governmental activities: Capital assets, not being depreciated: Land 69,816,674$ 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 EXHIBIT 4 Natural Disaster Reserve % of City Coverage Asset Estimated Replacement Value Recommended Coverage Recommended Coverage FEMA/State City Coverage 14 Parks 19,966,204 ‐ ‐18,718,316 1,247,888 623,944 50% 0%94%6% 12 City Buildings 60,322,936 31,197,068 52,562,286 1,678,125 111,875 111,875 100% 52%87%3%0.19% SilverRock 6,317,571 3,034,645 2,592,501 3,651,397 243,426 121,713 50% 48%41%58%4% Streets, Signals, 266,775,219 ‐ 823,394 248,557,904 16,570,527 8,285,263 50% Signs, Landscaping 0%0.31%93%6% Fleet Vehicles 693,182 693,182 ‐‐693,182 693,182 100% 100%0%100% Housing Assets 12,059,000 12,059,000 5,199,000 6,431,250 428,750 428,750 100% 100%43%53%4% TOTALS 366,134,112 46,983,895 61,177,181 279,036,992 19,295,648 10,264,728 Percentage of Total Value 13%17%76%5%3% Property Coverage (Flood, Fire, Wind) Earthquake Coverage Estimated Replacement Costs Funding Sources SUMMARY OF ALL INSURED CITY ASSETS City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: May 9, 2018 STAFF REPORT AGENDA TITLE: APPROVE THE FISCAL YEAR 2018/19 INVESTMENT POLICY RECOMMENDATION Approve the Fiscal Year 2018/19 Investment Policy. EXECUTIVE SUMMARY •The California Government Code (Code) requires the City Treasurer to submit an annual statement of investment policy. •The Financial Advisory Commission (FAC) reviewed the Investment Policy (Policy) on April 11 and guidance was incorporated. FISCAL IMPACT – None. BACKGROUND The California Government Code requires state and local agencies to submit an annual statement of investment policy to the City Council. As part of the work plan, each year the FAC conducts a thorough review of the Policy and makes recommendations for City Council consideration. There were no regulatory changes in 2017/18 which would have required an update to the current Policy. However, the FAC and staff have identified edits which provide consistency and further clarification to the document. Recommendations include changes to the fiscal year referenced, minor language changes for text consistency in appendices, removal of redundant information, and changes for consistency with City and/or State Code: •Executive Summary updated to be more concise. •Section V regarding maximum maturities was updated to be consistent with State Code. •Section VI updated to reflect Prudent Investor Standard and fiduciary duty requirements in the California Government Code. •Section X regarding permissible deposits and investments was updated regarding maximum maturity for local agency bonds, maximum LAIF balance, and percentage of portfolio allowable in each investment category, to align with State Code. BUSINESS SESSION ITEM NO. 2 •Section X was also updated to allow up to 50% of the portfolio to be managed by a Professional Portfolio Management Firm. •Appendices F and G – Broker/Dealer Questionnaire and Request for Proposals for Professional Portfolio Management Firm- were removed as these are internal process documents to be utilized only when needed. •Appendices A and H –Summary of Permissible Deposits – were removed as they reiterated data found in Section X. •Listing of Approved Financial Institutions was updated to align columns and add the new OPEB trust account. It is City policy to invest all public funds in a manner which will provide a diversified portfolio with maximum security, the highest investment return, in conformity with all state and local statutes, while meeting daily cash flow demands. This Policy applies to all cash and investments of the City, Successor Agency to the La Quinta Redevelopment Agency, La Quinta Housing Authority, and the La Quinta Financing Authority. The primary objectives of investment activity, in order of priority, are: •Safety of principal; •Liquidity to meet all obligations and requirements that may be reasonably anticipated; and •A risk-based market rate of return, meaning the return on an investment is less important than the safety and liquidity. Authority to manage the City’s investment portfolio is specified in Section 3.08.010 of the City’s Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who establishes and implements written procedures for its operation, consistent with the Policy. ALTERNATIVES FAC may approve as presented, incorporate changes, or request further review before submitting to Council. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director Attachment 1: Investment Policy Attachment 2: Investment Policy - Redlined to highlight changes 1 2 3         4        5 6        7    8 and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations: ¾Maximum 30% of the portfolio; ¾Maturities shall not exceed five years from date of purchase; ¾Eligible notes shall be regularly quoted and traded in the marketplace; ¾Eligible notes shall be rated "AA" or better; and ¾The maximum aggregate investment in each issuer shall not exceed $5 million (PAR value). Professionally Managed Account(s)- The City Treasurer may place up to 50% of the portfolio with a professional portfolio management/investment management firm (firm) The firm will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a public request for proposal (RFP). The firm shall have: ¾An established professional reputation for asset or investment management; ¾Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; ¾Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; ¾Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and ¾Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940 Before engagement by the City and except as may be specifically waived or revised, the firm shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions: ¾The firm may be granted the discretion to purchase and sell investment securities in accordance with this Investment Policy; ¾The firm is not required to adhere to a buy-and-hold policy; and ¾The firm does not need City Manager or City Treasurer approval to make permissible investments. Local Agency Bonds and California Local Agency Obligations - The City may invest in California local agency obligations pursuant to §53601(a) and §53601(e). 53601(a) pertains to investing in bonds issued by a local agency, or by the department, board, agency or authority of the local agency. 53601(e) pertains to investing in bonds and other defined indebtedness of any local agency, or department, board, agency or authority of the local agency within the State of California. The Agency obligations must be invested in the long term rating of A or better by S&P, Moody's or Fitch. In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers. XIINVESTMENT POOLS There are three (3) types of investment pools: ¾State-run pools (e.g., LAIF); ¾Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee 10  1. 2.      11        12            13       14 Appendix A A. B. A. 1. 2. 3. 4. 5. 6. B. 15 16 17 Appendix C SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Develop and Recommend Modifications to City's Formal Investment Policy Review City's Investment Policy and Recommend City Council Action Adopt Formal Investment Policy Implement Formal Investment Policy Review Financial Institutions & Select Investments Acknowledge Investment Selections Execute Investment Transactions Confirm Wires (if applicable) Responsible Parties Financial Advisory Commission and City Treasurer City Manager and City Attorney City Council City Treasurer City Treasurer or Financial Services Analyst City Manager or his/her designee City Treasurer or City Manager Senior Accountant or Financial Services Analyst Record Investment Transactions in City's Accounting Records Investment Verification (match broker confirmation to City investment records) Reconcile Investment Records to Accounting Records and Bank Statements Reconcile Investment Records to Treasurers Report of Investments Security of Investments at City Security of Investments outside City Review Internal Control Procedures Senior Accountant or Accountant City Treasurer and Financial Services Analyst Financial Services Analyst Senior Accountant or Financial Services Analyst Senior Accountant or Management Assistant Third Party Custodian External Auditor 18 Appendix D            19 20 value 21 1. 2. 3. 4. 5. 6. 22 23 24 2018/19 INVESTMENT POLICY 19 CITY OF LA QUINTA Investment Policy FlscalYear 201187/201819 Table of Contents Section I II III IV V VI VII VIII IX X XI XII XIII XIV xv XVI XVII Topic Executive Summary General Purpose Investment Policy Scope Objectives  Safety of Principal  Provide Liquidity  Yield A Risk-Based Market Rate Of Return Maximum Maturities Prudence Authority Ethics and Conflicts of Interest Authorized Financial Dealers and Institutions  Broker/Dealers  Financial Institutions Permissible Deposits and Investments Investment Pools Payment and Custody Interest Earning Distribution Policy Internal Controls and Independent Auditors Reporting Standards Financial Assets and Investment Activity Not Subject to this Policy Investment of Bond Proceeds Page 2 4 4 4 4 6 6 6 7 7 8 12 13 13 13 14 15 15 XVIII Financial Advisory Commission - City of La Quinta 15 XIX Investment Policy Adoption 16 Appendices Topic Page A Summary of Permissible Deposits and Investments 17 B City of La Quinta Municipal Code Ordinance 2.70 -Financial Advisory Commission 19 C City of La Quinta Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 20 D Segregation of Major Investment Responsibilities 22 E Listing of Approved Financial Institutions 23 F Broker/Dealer Questionnaire and Certification 24 G Request for Proposal for Professional Portfolio Management Firm 28 H Permissible Investment Chart - Professional Portfolio Management Firm 34 I Investment Management Process and Risk 35 J Glossary 36 Comment [RH1]: All page numbers will be adjusted on final copy to match placement in document 19 CITY OF LA QUINTA Investment Policy FlscalYear2017Fiscal Year 2018/20182019 Executive Summary The general purpose of this Investment Policy is to provide the rules and standards that must be followed in administering the City of La Quinta's (the “City”) deposits and investments. The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City of La Quinta. (the "City"), with the exception of bond proceeds and those noted in section XVI herein.. It is the City's policy to deposit and invest public funds in a manner that shall provide safety of principal, liquidity to meet all of the City’s obligations and requirments that may be reasonably anticipated and a risk-based market rate of return.:  Safety of principal;  Liquidity to meet all of the City's obligations and requirements that may be reasonably  anticipated; and  A risk-based market rate of return. It is the City's policy to generally hold securities and other investments until maturity. This buy- and-hold policy shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit worthiness, when the liquidity needs of the portfolio require that a security be sold, or when a sale/repurchase is fiscally advantageous based on market conditions and fits the needs of the portfolio. Authority to manage the City's investment portfolio is derived from the City Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The Treasurer shall establish and implement a system of internal controls to accomplish the following objectives:  Safeguard assets;  Orderly and efficiently conduct its business, including adherence to all City management policies;  Prevent or detect errors and fraud;  Accurately complete all accounting records; and  Timely prepare all reliable financial information. The System of Internal Controls developed by the City Treasurer shall be reviewed annually by the independent auditors in connection with the annual audit of the City's financial statements. The City Manager, City Treasurer and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City Treasurer maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. The Treasurer will be permitted to invest only in the permissible deposits and investments described in Section X and Appendix A up to the specified maximum allowable percentages Comment [RH2]: Removed. Verbatim on page 6 section V Formatted: Justified, Indent: Left: 0.79", First line: 0.01", Right: 0.37", Space Before: 0 pt, Line spacing: Multiple 1.07 li, No bullets or numbering Comment [RH3]: Removed. Verbatim on page 8 section IX Comment [RH4]: Removed- see section X. Appendix A also removed 3 and/or dollar limitations and, where applicable, through the bid process requirements. Permissible deposits and investments include, in general: 4  FDIC-Insured Checking, Savings, and Sweep Accounts;  Collateralized Bank Deposits; Certificates of Deposit;  Certificates of Deposit (Negotiable and Non-Negotiable);  U.S. Government Agency Securities and Federal Government Securities;  Prime Commercial Paper;  Local Agency Investment Fund (LAIF);  Money Market Mutual Funds;  Corporate Notes; and  Professionally Managed Accounts. The City's deposits and investments are generally limited to five years maximum maturity. However, the projected amount of funds not expected to be disbursed within five years may be invested in notes and bonds maturing between three and five years. Additionally, funds may be invested for up to ten (10) years as further discussed in Section V. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. As a basis for comparison only, the Treasurer's monthly report will display the rates of return on the three-month Bill, six-month Bill, and the one and two-year U.S. Treasury Note, comparable-period rates for commercial paper, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis,. The Investment Policy will be adopted before the end of June of each fiscal year (June). This Executive Summary is only an overview of the City's Investment Policy. Reading this summary does not constitute a complete review, which can only be accomplished by reviewing all of the pages herein. Comment [RH5]: Removed. Verbatim on page 6 section IV.3 5 City of La Quinta Statement of Investment Policy July 1, 20178 through June 30, 20189 Adopted by the City Council on I GENERAL PURPOSE The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. II INVESTMENT POLICY It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall provide:  Safety of principal;  Liquidity to meet all of the City's obligations and requirements that may be reasonably  anticipated; and  A risk-based market rate of return. The Investment Policy conforms to all State and local statutes governing the investment of public funds and sets forth the permissible deposits and investments of the City's funds and the limitations thereon. III SCOPE Except as further detailed in Section XVI and XVII, this Investment Policy applies to all deposits and investments of the City of La Quinta, the Successor Agency to the City of La Quinta Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities (hereafter referred to in this document as the "City" or the “Agency”). These funds are reported in the City's Comprehensive Annual Financial Report (CAFR) and include all funds within the following fund types:  General  Special Revenue  Capital Projects  Debt Service  Enterprise  Internal Service  Trust and Agency  Any new fund types and fund(s) that may be created. IV OBJECTIVES The objectives of the City's investment activity, in order of priority and importance, are: 1. Safety of Principal Safety of principal is the foremost objective of the City's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments. Formatted: Indent: Left: 0.8", First line: 0", Right: 0.33", Space Before: 0 pt, Line spacing: Multiple 1.04 li, No bullets or numbering Comment [RH6]: Redundant; this information is also under objectives below 6 The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. a. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by:  Limiting investments to investment grade securities as permitted in Section X; and  Diversifying the issuers of the securities in the investment portfolio so that  potential losses due to issuer failure or individual securities downgrades may be minimized. b. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by:  Structuring the investment portfolio so that securities mature to meet cash  requirements for ongoing operations, thereby avoiding the need to sell  securities on the open market prior to maturity; and  Investing operating funds primarily in shorter-term securities. c. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X). and because the City maintains a buy-and-hold policy and holds securities and other investments to maturity. A discussion of the City's investment process and risk is presented in Appendix EI. 2. Provide Liquidity The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. The City's policy is to generally hold securities and other investments to maturity. Accordingly, securities shall not be sold prior to maturity with the following exceptions:  A security with declining credit quality can be sold early to minimize loss of principal.  Unanticipated liquidity needs of the portfolio require that one or more securities be sold.  When a sale/repurchase is fiscally advantageous based on market conditions and fits the needs of the portfolio 3. Yield a Risk-Based Market Rate of Return The City's investment portfolio shall be structured with the objective of yielding a risk-based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above. The City's Investment Policy does not specify a single benchmark as a goal or target yield for Comment [RM7]: Removed to match last year’s update- see next section 7 a rate of return on its investment portfolio. The portfolio's rates of return will be influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions. These factors will not affect yield during the securities' holding period because the City's buy-and-hold policy fixes the securities' yield at the time of purchase. As a basis for comparison only, the Treasurer's monthly quarterly reports will display the rates of return on the three-month Bill, six-month Bill, and one and two-year U.S. Treasury Note, comparable-period rates for commercial paper, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. V MAXIMUM MATURITIES It is the City's policy to generally hold securities and other investments until maturity. This buy- and-hold policy shall not prevent the sale of a security as listed in section IV.3 It is the City's policy to hold securities and other investments until maturity, thus avoiding the risk of market value fluctuations with overall market interest rates. This buy-and-hold policy shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit worthiness or when the liquidity needs of the City require that a security be sold. The general buy-and-hold policy strategy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably- anticipated cash needs. To meet anticipated cash needs, it is essential that the Treasurer have reliable, diligently prepared cash flow projections. The City shall follow Title 5 of the California Government Code §53601 (the “State Code”) regarding maximum maturities, in that “ no investment shall be made in any security…that at the time of the investment has a term remaining to maturity in excess of five years”. Annually, the Treasurer shall project the amount of funds not expected to be disbursed within ten years. For FY 2017118 the amount of such funds is projected to be $20 million. Funds up to that amount may be invested in Local Agency Obligations and California Local Agency Obligations maturing between 3 and 10 years. For all other funds, investments are limited to five years maximum maturity. VI PRUDENCE and FIDUCIARY DUTY The City shall follow the Code §53600.3 regarding fiduciary duty and the Prudent Investment Standard as follows: Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this Comment [RM8]: Changed to follow Government Code as opposed to Probate Code. Overall definition of Prudent Investor remains 8 section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in Probate Code Sections 16045 through 16054. Section 16053 sets forth the terms of a prudent person which are as follows: Investments shall be made “using the judgment and care - under circumstances then prevailing - which persons of prudence, discretion, and intelligence exercise in the professional management of their own affairs, not for speculation, but for investment, considering the probable income as well as the probable safety of their capital.” VII AUTHORITY Authority to manage the City's investment portfolio is derived from section 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy. The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire 9 transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. VIII ETHICS AND CONFLICTS OF INTEREST The City Manager, City Treasurer and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. Any questionable activity or relationship shall be reported immediately and in compliance with the procedures set forth in Section 1.40 - Conflicts of Interest and Acceptance of Gifts and other Gratuities of the City of La Quinta Personnel Manual. Reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter. The City Manager, City Treasurer and City employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the accountholder with the City are the same as those that are available to the public in general. IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes. In addition a list will also be maintained of approved broker/dealers selected by credit worthiness. 1. Broker/Dealers who desire to become bidders for direct investment transactions must supply the City with the following:  Current audited financial statements;  Proof of Financial Industry Regulatory Authority (FINRA) Certification;  Trading resolution;  Resume of Financial broker; and  Completion of the City of La Quinta Broker/Dealer questionnaire (see Appendix F) which contains a certification of having read the City's Investment Policy. The City Treasurer shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and individual conducting investment related business. The City Treasurer will also contact the following agencies during the verification process:  Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-800- 289-9999).  State of California Department of Corporations (1-916-445-3062). The City Treasurer maintains a listing of financial institutions which are approved for investment purposes.. A professional investment manager or management firm, if engaged by the City pursuant to Section X of this policy, may utilize their own list of approved broker/dealers on the condition that any such list is provided to the City upon request. 10 All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S. Treasury Department regulations. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix DE, "Listing of Approved Financial Institutions"): a. Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC). b. Collateral- The amount of the City's deposits or investments not insured by the FDIC shall be collateralized by securities with market values of 110%, or by mortgages with market values 150%, of the amount of invested funds plus unpaid interest earnings. c. Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report. The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. X PERMISSIBLE DEPOSITS AND INVESTMENTS The City’s shall follow the applicable State Code in regard to allowable securities. Permissible deposits and investments, as allowed by Chapter 4, Part 1, Division 2, Title 5 (hereinafter cited by §), include, but are not limited to, the following: Permissible deposits and investments are summarized below. A more comprehensive list is included in Appendix A. Permissible Deposits and Investments City Maximum Allocation (Footnote 1) City Restrictions City Maximum Maturity Checking & Savings Accounts (FDIC Insured) & Sweep Accounts 85% Portfolio Sweep Account: U.S. Treasuries and/or GSE's Current/On Demand Interest bearing active bank deposits - non FDIC insured collateralized by 110% of eligible securities 60% Portfolio $40,000,000 per bank Current /on Demand Certificate of Deposit (negotiable and non-negotiable) 30 % Portfolio <= $250,000 including interest per institution 5 years U.S. Treasury Bills, Notes and Bonds, and Government National Mortgage Association (GNMA) securities 100% Portfolio <=$30,0000,000 maturing 3-5 Yrs. 5 years Formatted: Normal, Left, Indent: Left: 0.5", First line: 0", Right: 0", Space Before: 0 pt, Line spacing: single, Tab stops: 3.18", Left Comment [RH9]: Eliminate chart here- data is in the paragraphs Formatted: Indent: Left: 0.79", First line: 0", Right: 0.33", Line spacing: Multiple 1.07 li 11 U.S. Government Agency Securities and Federal Government Securities (except collateralized mortgage obligations (CMO's) or structured notes which contain embedded rate options): 30% of Portfolio combined $10 million per purchase 12 - Federal National Mortgage Association (FNMA) - Federal Home Loan Bank Notes & Bonds (FHLB) - Federal Farm Credit Bank (FFCB) - Federal Home Loan Mortgage Corporation (FHLMC) $20,000,000 per issuer $25,000,000 per issuer $30,000,000 per issuer $20,000,000 per issuer 5 years 5 years 5 years 5 years Prime Commercial Paper 15% Portfolio $5,000,000 per issuer maximum 90 days Local Agency Investment Fund (LAIF) $50,000,000 $50,000,000 per account Current/On Demand Money market mutual funds regulated by the SEC that consist only of US Treasury Securities or Government Sponsored Enterprises (GSE's) 20% Portfolio Mutual fund must have in excess of $500 million in assets under management or receive the highest rating from at least two of the three major rating services 90 Days Corporate Notes 10% Portfolio $5,000,000 max per issuer AA or better rating 3 years Corporate Notes - ) 20% Portfolio $10,000,000 max per issuer 3 years Professionally Managed Account 10% Portfolio Requires Approved RFP 3 years Local Agency Bonds/California Agency Obligations 30% <=$30,000,0000 10 years Long-Term Scale S&P A1 AAA, AA+, AA, AA-, A+, A Moody's P1 Aaa, Aa1, Aa2, Aa3, A1, A2 Fitch AAA, AA+, AA, AA-, A+, A Checking. Savings. and Sweep Accounts - The City will only maintain checking, sand savings, and sweep accounts with FDIC insured financial institutionsstate or national banks, savings associations, federal assoications, and/or credit unions in accordance with §53635.2. As authorized by the City Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account may be maintained in conjunction with the checking account. In addition, the Treasurer may invest in an interest bearing active deposit account as approved in Government Code Section§ 53632. The deposit account must be collateralized with securities that are in accordance with Government Code Sections§ 53632.5(c). In addition, the market value of the collateralized securities must be maintained in accordance with §53652 (a), and be held by a custodian in accordance with the requirements of Government Code Section§ 53656. The proposition of the City's share of the deposit account shall be determined in accordance with Government Code Section§ 53658. Comment [RH10]: Consider making this same dollar amount for all, or percentage of total Comment [RH11]: Alternative to listing amount at $65,000,000 would be to say “up to statutory limits” or similar language Comment [RM12]: For discussion- should we increase? Formatted: Indent: Left: 1.29", First line: 0" Formatted: Normal, Indent: Left: 1.29", First line: 0", Right: 0.37", Space Before: 4.7 pt 13 Certificates of Deposit (Negotiable and Non-negotiable) - As authorized in Government Code Section 53601, local governments may invest up to 30% of their portfolios in Certificates of Deposits and 30% in Negotiable Certificates of deposits. The City's policy is toto the City may invest in limit combined Non-Negotiable and Negotiable Certificates of Deposits (CD) up to 30% of the overall portfolio §53601 (i). Each CD is limited In no instance shall a CD or combined CD’s with a single issuer exceed to the FDIC or NCUSIF insurance limit of $250,000. U.S. Treasury Bills. Notes. and Bonds and Government National Mortgage Associations (GNMA) securities - The City may invest in U.S. Treasury bills, notes, and bonds and GNMA securities directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy provides for investments in U.S. Treasury issues and GNMA's of 100% of the portfolio §53601(b). ► The City's Investment Policy does not allow investments in state indebtedness. U.S. Government Agency Securities and Federal Government Securities - The City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or GSE's) §53601(f). These securities are not backed by the full faith and credit of the U.S. Government. Publicly owned GSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Student Loan Marketing Association (SLMA). Non-publicly owned GSE's include the Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit Bank (FICB). The City's Investment Policy allows investment only in securities of FNMA, FHLMC, FHLB and FFCB. For Fiscal Year 20171182018-19, the maximum face amount per issuer is $20 million. for FNMA and FHLMC, $25 million for FHLB and $30 million for FFCB. In addition, no more than 30% of the portfolio surplus may be invested in all GSE's combined, with a maximum $10 million face amount per purchase. Prime Commercial Paper -As authorized in Government Code Section§ 53601(h), a portion of the City's portfolio may be invested in commercial paper of the highest rating (A1 or P1)as provided for by a nationally recognized statistical rating organization (NRSRO- ie Moodys, Fitch or S&P) as rated by Moody's or Standard and Poor's. There are a number of other qualifications regarding investments in commercial paper based on the financial strength of the corporation and the size of the investment. The City's Investment Policy permits investments in commercial paper with the following limitations:  Maximum 15% of the portfolio;  Maximum maturity of 90 days; and  Maximum of $5 million per issuer. Per state code, "Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, may invest no more than 25 percent of their moneys in eligible commercial paper. Local agencies, other than counties or city and county, may purchase no more than 10 percent of the outstanding commercial paper of any single issuer. Local Agency Investment Fund (LAIF) -As authorized in Government Code Section§ 16429.1 and by LAIF procedures, local government agencies are each authorized to invest a maximum of $50 65 million per account in this investment program administered by the Formatted: Normal, Left, Indent: Left: 1.29", Right: 0", Space Before: 4.65 pt, Line spacing: single Comment [RM13]: For simplicity, recommend $20 mil max or percentage based per issuer. Formatted: Justified, Indent: Left: 1.29", First line: 0", Right: 0.37", Space Before: 4.7 pt, Line spacing: Multiple 1.08 li, No bullets or numbering, Tab stops: Not at 1.8" 14 California State Treasurer. The City Treasurer may not invest more than $50 65 million per account in LAIF. The City's investment in LAIF is allowable as long as the average maturity of its investment portfolio does not exceed two years, unless specific approval is authorized by the City Council. Money Market Mutual Funds - As authorized in Government Code Section§ 53601(kl), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). The City's Investment Policy only allows investments in mutual funds that invest in direct issues of the U.S. Treasury and/or US Agency Securities with an average maturity of their portfolio not exceeding 90 days and the City limits such investments to 20% of the portfolio with the exception of bond proceeds with the fiscal agent which are subject to bond indentures, not the City's Investment Policy. Corporate Notes - As authorized in Government Code Section §53601 Uk), local agencies may invest in corporate notes. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations:  Maximum 1030% of the portfolio;  Maturities shall not exceed three five years from date of purchase;  Eligible notes shall be regularly quoted and traded in the marketplace;  Eligible notes shall be rated "AA" or better; and  The maximum aggregate investment in each issuer shall not exceed $5 million face amount for each issuer(PAR value). This is more restrictive than the State code allowed amounts of 30% of the total portfolio with maturities up to five years with no per-issuer limitations. Professionally Managed Account(s)- The City Treasurer may place up to 100% of the portfolio with a professional portfolio management/investment management firm (firm) ("PPMF"). The PPMF firm will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a public request for proposal (RFP) as outlined in Appendix G. The PPMF firm shall have:  An established professional reputation for asset or investment management;  Knowledge and working familiarity with State and Federal laws governing and  restricting the investment of public funds;  Substantial experience providing investment management services to local public  agencies whose investment policies and portfolio size are similar to those of the City;  Professional liability (errors and omissions) insurance and fidelity bonding in such  amounts as are required by the City; and  Registration with the Securities and Exchange Commission under the Investment  Advisers Act of 1940. 15  Before engagement by the City and except as may be specifically waived or revised, the PPMF firm shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions:  The PPMF firm may be granted the discretion to purchase and sell investment securities in accordance with Appendix I ofwith this Investment Policy;  The PPMF firm is not required to adhere to theto a buy-and-hold policy of the City's Investment Policy; and  The PPMF firm does not need City Manager or City Treasurer approval to make permissible investments. Local Agency Bonds and California Local Agency Obligations - The City may invest in California local agency obligations pursuant to §5630153601(a) and §5330153601(e). 53601(a) pertains to investing in bonds issued by a local agency, or by the department, board, agency or authority of the local agency. 53601(e) pertains to investing in bonds and other defined indebtedness of any locaI agency, or department, board, agency or authority of the local agency within the State of California. The City's Investment Policy limits investments in Local Agency Bonds and California Local Agency obligations to 30% of the portfolio with up to a ten year maximum maturity. In addition, tThe Agency obligations must be invested in the long term rating of A, A2, A or better by S&P, Moody's or Fitch. In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers. XI INVESTMENT POOLS There are three (3) types of investment pools:  State-run pools (e.g., LAIF);  Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools); and  Pools that are operated for profit by third parties. The City's Investment Policy permits investment only in pools authorized in Section X.by Government Code. XII PAYMENT AND CUSTODY The City shall engage qualified third party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds, received from the City for a purchase, to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. Even though ownership is evidenced in book-entry form rather than by actual certificates, this procedure is commonly accepted as the delivery versus payment (DVP) method for the transfer of securities. XIII INTEREST EARNING DISTRIBUTION POLICY 16 Interest earnings are generated from pooled investments and specific investments. The following provisions apply to the calculation and distribution of interest earnings. 1. Pooled Investments - It is the general policy of the City to pool all available operating cash of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings in the following order, as follows: a. Payment to the General Fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. b. Payment to the General Fund of a management fee equal to 5% of the annual pooled cash fund investment earnings. c. Payment to each fund of an amount based on the average computed daily cash balance included in the common portfolio for the earning period. 2. Specific Investments - Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives:  Safeguard assets;  The orderly and efficient conduct of its business, including adherence to management  policies;  Prevention or detection of errors and fraud;  The accuracy and completeness of accounting records; and  Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following:  Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer.  Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved.  Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping.  Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. 17  Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices.  Written confirmation of telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax or email if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow-up.  Development of a wire transfer agreement with the City's bank and third party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The system of internal controls developed by the City, shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains, to cash and investment activities and the City Treasurer's response shall be provided to the City's Financial Advisory Commission for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Financial Advisory Commission and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix DC, "Segregation of Major Investment Responsibilities." XV REPORTING STANDARDS The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Financial Advisory Commission that includes all cash and investments under the authority of the Treasurer. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following:  A certification by the City Treasurer;  A listing of purchases and sales/maturities of investments;  Cash and Investments categorized by authorized investments, except for LAIF which  will be provided quarterly and show yield and maturity;  Comparison of month end actual holdings to Investment Policy limitations;  Balance Sheet;  Distribution of cash and investment balances by fund;  A two-year list of historical interest rates. XVI FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS POLICY The City's Investment Policy does not apply to the following:  Cash and Investments raised from Conduit Debt Financing;  Funds held in trust in the City's name in pension or other post-retirement benefit  programs; Formatted: Font: 10.5 pt, Bold, Italic, No underline 18  Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects; and  Short or long term loans made to other entities by the City or Agency,  Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency. XVII INVESTMENT OF BOND PROCEEDS The City's Investment Policy shall not govern bond proceeds and bond reserve fund investments. California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions. Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as required and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the new arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is the City's position to continue maximization of yield and to rebate excess earnings, if necessary. XVIII FINANCIAL ADVISORY COMMISSION - CITY OF LA QUINTA The Financial Advisory Commission (FAC) is a standing board composed of seven members from the public that are appointed by the City Council. Background information will be requested and potential candidates must agree to a background check and verification. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the board. All board members shall report annually every June to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest. The FAC must meet at least quarterly to:  Review at least annually the City's Investment Policy and recommend appropriate changes;  Review at least quarterly the treasury report and note compliance with the Investment Policy  as well as adequacy of cash and investments for anticipated obligations;  Receive and consider other reports provided by the City Treasurer;  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; and  Review at least annually the revenue derived from the one percent (1%) transactions and use tax instituted by voters in November 2016 to ensure these funds are used to provide services, programs, and capital projects in the city of LaQuinta  Serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use of or change of financial institutions, custodians, brokers and dealers. The FAC will report to the City Council after each meeting either in person or through correspondence at a regular City Council meeting. See Appendix B: "Financial Advisory Commission Provisions." 19 XIX INVESTMENT POLICY ADOPTION The City's Investment Policy will be reviewed annually by the City's Financial Advisory Commission and the City Treasurer. The Financial Advisory Commission will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Financial Advisory Commission, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. The Investment Policy shall be adopted by resolution of the City Council annually before the end of June of each year. 19 CITY OF LA QUINTA SUMMARY OF PERMISSIBLE DEPOSITS AND INVESTMENTS Appendix A The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage allocation limits and bid process requirements. All maturities must be less than or equal to the maximum maturity allowed. Bid Proces s Permissible Deposits and Investments City Maximum Allocatio n (Footnote 1) State Maximum Allocation City Restrictions City Maximum Maturity Credit Quality Surplus Funds 1 Checking & Savings Accounts (FDIC Insured) & Sweep Accounts 85% Portfolio 100% Portfolio Sweep Account: U.S. Treasuries and/or GSE's Current/On Demand FDIC Insured 2 Interest bearing active bank deposits - non FDIC insured collateralized by 110% of eligible securities 60% Portfolio 100% Portfolio $40,000,000 per bank Current /on Demand Non-FDIC Insured 2 Certificate of Deposit (Negotiable and Non- Negotiable) 30% Portfolio 60 % Portfolio <= $250,000 including interest per institution 5 years FDIC Insured 3 U.S. Treasury Bills, Notes and Bonds, and Government National Mortgage Association (GNMA) securities 100% Portfolio 100% Portfolio <=$30,0000,000 maturing 3-5 Yrs. 3 years 3 U.S. Government Agency Securities and Federal Government Securities (except collateralized mortgage obligations (CMO's) or structured notes which contain embedded rate options): - Federal National Mortgage Association (FNMA) - Federal Home Loan Bank Notes & Bonds (FHLB) - Federal Farm Credit Bank (FFCB) - Federal Home Loan Mortgage Corporation (FHLMC) Per issuer: $20,000,0 00 $25,000,0 00 $30,000,0 00 $20,000,0 00 30% Portfolio $10,000,000 per purchase 5 years 5 years 5 years 5 years 19 3 Prime Commercial Paper including Temporary Liquidity Guarantee Program (TLGP) 15% Portfolio 25% Portfolio 270 Days $5,000,000 per issuer maximum 90 days S&P (A-1) Moody's (P- 1) 4 Local Agency Investment Fund (LAIF) $50,000,0 00 $50,000,000 per account Current/On Demand 5 Money market mutual funds regulated by the SEC that consist only of US Treasury Securities or GSE's and maintain a par value of $1 per share 20% Portfolio 20% Portfolio Mutual fund must have in excess of $500 million in assets under management 90 Days Rated AAA by 2 of 3 agencies; assets>=$50 0 million; SEC reg'd >5 Yrs. 6 Corporate Notes 10% Portfolio 30% Portfolio $5,000,000 max per issuer 3 years S & Prated AA or better 6 Corporate Notes - Temporary Liquidity Guarantee Program (TLGP) 20% Portfolio 30% Portfolio $10,000,000 max per issuer 3 years S&P rated AA or better. 7 Professionally Managed Account 10% Portfolio 100% Portfolio Requires Approved RFP 3 years SEC Reg'd; E&O, Fidelity Insured 8 Local Agency Bonds/California Agency Obligations 30% 30% <=$30,000,0000 10 years At least long term "A, A2, A" rating Comment [RM14]: See previous notes; discuss 19 Bid Process Unauthorized Investments Appendix A (continued) Periodically conduct a bid process for banking and/or custodian services. Since banking services and custodian services are so closely related it isanticipated that the bid process would include the scope of both services. 1 The financial institutions can be either state or federally chartered and must be insured by the Federal Deposit Insurance Corporation (FDIC). At least two bids from broker/dealers that qualify under Securities and 2 Exchange Commission Rule 15C3-1 listed on the "Listing of Approved Financial Institutions" in the appendices. 3 City Council Approval. The City Treasurer will not be permitted to invest in the following types of investments (see Footnote 2 and "State Code Permitted Deposits And Investments Not Authorized By The City's Investment Policy", below). - Repurchase Agreements - Bankers Acceptances - Mutual Funds other than money market mutual funds - Preferred and Common Stock - State Indebtedness - Asset Backed Securities - Reverse Repurchase Agreements - Derivatives The above list of unauthorized deposits and investments is not meant to be all-inclusive. Only those deposits and investments listed in the "Permissible Deposits and Investments" section of the Policy are permissible. Money Market mutual funds must comply with Government Code Section 4 53601(k). The fund must be registered by the SEC and must include marking the portfolio to market daily. At least two bids from broker/dealers that qualify under Securities and 5 Exchange Commission Rule 15C3-1 listed on the "Listing of Approved Financial Institutions" in the appendices. The professional portfolio management firm (PPMF) will be approved by 6 the City Council based upon the City Treasurer's recommendation pursuant to completion of a request for proposal (RFP) as outlined in the appendices. See also Footnote 2. 7 Initial offerings the Treasurer may purchase directly from Bond Underwriter, secondary issues follow bid process 3. 21 Appendix B Chapter 2.70 FINANCIAL ADVISORY COMMISSION Sections: 2.70.010 2.70.020 2.70.030 2.70.040 General rules regarding the financial advisory commission. Number of members. Qualifications of members. Powers and duties. 2.70.010 General rules regarding the financial advisory commission. Except as set out below, see Chapter 2.06 for general provisions. 2.70.020 Number of members. The financial advisory commission ("FAC") shall initially consist of seven members appointed by, and serving at the will of the city council. The city council may increase or decrease the number of members from time to time but in no event shall the membership exceed nine members or be less than five members. 2.70.030 Qualifications of members. A. In addition to the qualification requirements set forth in Section 2.06.040 of this code, a minimum of three of the members shall be finance professionals and shall have a verifiable background in finance and/or securities, preferably with knowledge and/or experience in markets, financial controls and accounting for securities. B. For those applying for the professional position, background information will be requested and potential candidates must agree to a background check and verification by the city manager or designee. 2.70.040 Powers and duties. A. The principal functions of the FAC are: 1. Review at least annually the city's investment policy and recommend appropriate changes; 2. Review at least quarterly the treasury report and note compliance with the investment policy and adequacy of cash and investments for anticipated obligations; 3. Receive and consider other reports provided by the city treasurer; 4. Meet with the independent auditor after completion of the annual audit of the city's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities; 5. Review at least annually the revenue derived from the one percent (1%) transactions and use tax instituted by voters in November 2016 to ensure these funds are used to provide services, programs and capital projects in the city of La Quinta. 6. Serve as a resource for the city treasurer on matters such as proposed investments, internal controls, use of or change of financial institutions, custodians, brokers and dealers. B. The FAC will report to the city council after each meeting either in person or through correspondence at a regular city council meeting. 2.70.050 References to the Investment Advisory Board. If any other chapter(s) or section(s) in this code refers to the Investment Advisory Board, that chapter(s) or section(s) shall be deemed to refer to the Financial Advisory Commission established by the ordinance amending chapter 2.70 of this code. 22 Appendix C City of La Quinta Municipal Code Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS Sections: 3.08.010 Investment of city moneys and deposit of securities. 3.08.020 Authorized investments. 3.08.030 Sales of securities. 3.08.040 City bonds. 3.08.050 Reports. 3.08.060 Deposits of securities. 3.08.070 Trust fund administration. 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by Sections 53607 and 53608 of the California Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer, which, for purposes of this chapter, is defined in Section 2.12.010 of this code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under the city council adopted city investment policy and any provision of state law relating to the investing of general city funds, including, but not limited to, Sections 53601 and 53635 of the California Government Code, as said sections now read or may hereafter be amended, from moneys in the city treasurer's custody which are not required for the immediate necessities of the city and as he or she may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord.2 § 1 (part), 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be cancelled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 3.08.050 Reports. The city treasurer shall make a quarterly report to the city council of all investments made pursuant to the authority delegated in this chapter and as permitted by Section 53646(b)(1) of 23 the Government Code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the city council adopted investment policy and terms of any state law, including, but not limited to, Section 53608 of the Government Code, as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 36524 of the Government code and any other applicable provisions of law. (Ord. 2 § 1 (, 1982) 23 Appendix D SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Develop and Recommend Modifications to City's Formal Investment Policy Review City's Investment Policy and Recommend City Council Action Adopt Formal Investment Policy Implement Formal Investment Policy Review Financial Institutions & Select Investments Acknowledge Investment Selections Execute Investment Transactions Confirm Wires (if applicable) Responsible Parties Financial Advisory Commission and City Treasurer City Manager and City Attorney City Council City Treasurer City Treasurer or Financial Services Analyst City Manager or his/her designee City Treasurer or City Manager Senior Accountant or Financial Services Analyst Record Investment Transactions in City's Senior Accountant or Accounting Records Investment Verification (match broker confirmation to City investment records) Reconcile Investment Records to Accounting Records and Bank Statements Reconcile Investment Records to Treasurers Report of Investments Security of Investments at City Security of Investments outside City Review Internal Control Procedures Accountant City Treasurer and Financial Services Analyst Financial Services Analyst Senior Accountant or Financial Services Analyst Senior Accountant or Management Assistant Third Party Custodian External Auditor 25 Appendix E LISTING OF APPROVED FINANCIAL INSTITUTIONS 1. Banking Services 2. Custodian Services 3. Deferred Compensation 4. Broker/Dealer Services 5. Government Pool Wells Fargo Bank, Government Services, Los Angeles, CA (Banking Services) Rabobank N.A., Government Banking Group, Roseville, CA (Collateralized Bank Deposits) Bank of New York/Mellon/Pershing International City/County Management Association Retirement Corporation Bank of America Securities/Merrill Lynch Morgan Stanley CitiGroup First Empire Securities State of California Local Agency Investment Fund 6. Bond Trustees 1996 Lease Revenue Bonds - US Bank 1998 RDA Project Area 1&2 - US Bank 2001 RDA Project Area 1 - US Bank 2002 RDA Project Area 1 - US Bank 2003 RDA Project Area 1 - US Bank 2004 Local Agency Rev - US Bank 2013 Successor Agency- US Bank 2016 Successor Agency to the LQ RDA Assessment Districts - US Bank No Changes to this listing may be made without City Council approval 25 Appendix E Listing of Approved Financial Institutions Banking Services Wells Fargo Bank, Government Services, Los Angeles, CA (Banking Services) Rabobank N.A., Government Banking Group, Roseville, CA (Collateralized Bank Deposits) Custodian Services The Bank of New York Mellon/Pershing LLC Deferred Compensation International City/County Management Association (ICCMA) Retirement Corporation Broker/Dealer Services Bank of America Securities/Merrill Lynch Morgan Stanley CitiGroup First Empire Securities Government Pool State of California Local Agency Investment Fund (LAIF) Bond Trustee US Bank (1) Other Post Employment Benefits (OPEB) Trust California Employers' Retirement Benefits Trust (CERBT)/CalPERS (1) US Bank is the fiscal agent for all of the following bonds: 1996 Lease Revenue Bonds; 1998 RDA Project Area 1&2; 2001 RDA Project Area 1; 2002 RDA Project Area 1; 2003 RDA Project Area 1; 2004 Local Agency Revenue; 2013 Successor Agency; and 2016 Successor Agency to the La Quinta RDA Assessment Districts. 30 Telephone:(_) _ Telephone: _ Appendix F BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1. Name affirm:--------------------------- 2. Address:----------------------------- 3. Telephone:(_) ( _ 4. Broker's Representative to the City (attach resume): Name:------------------------------ Title:------------------------------ 5. Manager/Partner-in-charge (attach resume): Name:------------------------------ Title:------------------------------ 6. List all personnel who will be trading with or quoting securities to City employees (attach resume) Name:------------------------------ Title:------------------------------ 7. Which of the above personnel have read the City's Investment Policy? 8. Which instruments are offered regularly by your local office? (Must equal 100%) % U.S. Treasuries % Repos % BA's % Commercial Paper %CD's % Mutual Funds % Reverse Repos % CMO's % Derivatives % Stocks/Equities % Agencies (specify): % Other (specify): 9. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity Contact -------- Entity Contact -------- Telephone ( ) _ Telephone (_) _ Comment [RH15]: Propose eliminating- this is an internal document Formatted: Font: 11 pt Formatted: Font: 11 pt 30 Telephone:(_) ( ) _ Client Since------- Client Since Formatted: Font: 11 pt 30 10. Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explain. 11. Has your firm or your local office ever been subject to a regulatory or state/ federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so, explain. 12. Has a client ever claimed in writing that you were responsible for an investment loss? Yes No Ifyes, please provide action taken _ Has a client ever claimed in writing that your firm was responsible for an investment loss? Yes No Ifyes, please provide action taken _ Do you have any current or pending complaints that are unreported to FINRA? Yes No Ifyes, please provide action taken _ Does your firm have any current, or pending complaints that are unreported to FINRA? Yes No Ifyes, please provide action taken _ 13. Explain your clearing and safekeeping procedures, custody and delivery process. Who audits these fiduciary responsibilities? Latest Audit Report Date _ 14. How many and what percentage of your transactions failed? Last month? % $ _ 30 Last year? --- % $----- 15. Describe the method your firm would use to establish capital trading limits for the City of La Quinta.------------------------------ 16. Isyour firm a member in the S.I.P.C. insurance program? Yes No _ If yes, explain primary and excess coverage and carriers. _ 17. What portfolio information, if any, do you require from your clients? _ 18. What reports and transaction confirmations or any other research publications will the City receive?------------------------------ 19. Does your firm offer investment training to your clients? Yes No _ 20. Does your firm have professional liability insurance? Yes No _ If yes, please provide the insurance carrier, limits and expiration date. _ 21. Please list your FINRA/NASD Registration Number _ 22. Do you have any relatives who work at the City of La Quinta? Yes No If yes, Name and Department _ 23. 24. Do you maintain an office in California? Do you maintain an office in La Quinta or Riverside County? Yes--- Yes--- No---- No---- 25. Please enclose the following: ► Latest audited financial statements; ► Samples of reports, transaction confirmations and any other research/publications the City will receive; ► Samples of research reports and/or publications that your firm regularly provides to clients; and ► Complete schedule of fees and charges for various transactions. Formatted: Font: 11 pt Formatted: Font: 11 pt 30 ***CERTIFICATION*** I hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of La Quinta. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with financial transactions conducted with our firm. By signing this document the City of La Quinta is authorized to conduct any and all background checks. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. Broker Representative _ Date------------Title-------------------- Sales Manager and/or Managing Partner Date------------- Title-------------------- 33 AppendixG Request for Proposals Professional Portfolio Management Firm City of La Quinta, CA The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms for the provision of a discretionary investment management services for City of La Quinta, CA. The portfolio to be managed of the invested assets is will be approximately 10% of the City's investment portfolio and will be invested between O - 3 years. The investment of City of La Quinta, CA's funds is guided by the applicable State statutes and the City of La Quinta, CA's investment policy. A copy of the investment policy is attached for your information. Questions regarding this RFP should be directed to: City of: Title: Address: City, State, Zip Code: Phone Number: La Quinta, CA Finance Director/Treasurer 78-495 Calle Tampico La Quinta, CA 92253 (760)777-7000 I. CRITERIA FOR EVALUATION AND SELECTION ■ Experience of the firm in providing services to public sector entities of similar size and with similar investment objectives; ■ Professional experience and qualifications of the individuals assigned to the account; ■ Portfolio management resources, investment philosophy and approach; ■ Responsiveness to the RFP, communicating an understanding of the overall program and services required; ■ Reporting capabilities; ■ Fees. II. SELECTION TIMETABLE A. [Month, Day and Year] B. [Month, Day and Year] C. [Month, Day and Year] Proposals due by [Time] PST. Proposals evaluated: to be determined [City of La Quinta, CA] [Board/Council] approves selection and awards contract. III. FORMAT FOR PROPOSALS Please format your response to this RFP in the following manner: A. Organization 1. Describe your organization, date founded, ownership and other business affiliations. Provide number and location of affiliated offices. Specify the number of years your organization has provided investment management service. Comment [RH16]: Propose eliminating- this is an internal document, and subject to revision if/when and RFP is actually issued 33 2. Describe your firm's revenue sources (e.g., investment management, institutional research, etc.) and comment on your firm's financial condition. 3. Within the past three years, have there been any significant developments in your organization (e.g., changes in ownership, new business ventures)? Do you expect any changes in the near future? 4. Describe any U.S. Securities and Exchange Commission (SEC) censures or litigation involving your organization, any officer, or employee at any time in the last ten years. 5. Describe the firm's fiduciary liability and/or errors and omissions insurance coverage. Include dollar amount of coverage. B. Personnel 1. Identify the number of professionals employed by your firm by classification. 2. Provide an organization chart showing function, positions, and titles of all the professionals in your organization. 3. Provide biographical information on investment professionals that will be involved in the decision-making process for our portfolio, including number of years at your firm. Identify the person who will be the primary portfolio manager assigned to the account. 4. Describe your firm's compensation policies for investment professionals and address any incentive compensation programs. C. Assets Under Management 1. Summarize your institutional investment management asset totals by category for your latest reporting period in the following table: Number of Clients Operating Funds Number of Clients Other Restrictive Funds Governmental $ _ $ _ Governmental Pension $ _ N/A N/A Non Governmental Pension Corporate High Net Worth Client $ _ $ _ $ _ N/A N/A N/A N/A N/A N/A 33 Endowmental/Foun- dation _ N/A N/A 2. Provide the number of separate accounts whose portfolios consist of operating funds. 3. List in the following table the percentage by market value of aggregate assets under all governmental accounts under management for your latest reporting period: Type of Asset U.S. Treasury securities Federal Agency obligations Corporate securities rated AAA-AA Corporate securities rated A Corporate securities rated BBB or lower Other (specify ) Percent by Market Value 4. Describe the procedures that your firm has in place to address the potential or actual credit downgrade of an issuer and to disclose and advise a client of the situation. 5. Provide data on account/asset growth over the past five years. Indicate the number of government accounts gained and the number of government accounts lost. 6. List your five governmental largest clients. Identify those that are exclusively operating fund relationships and/or those that are other relationships (e.g., bond fund, retirement fund). 7. Provide a copy of the firm's Form ADV, Parts I and II (including all schedules). 8. Provide proof of State of California Registration, if your firm is not eligible for SEC registration. 9. Provide a sample contract for services. D. Philosophy/ Approach 1. Describe your firm's investment philosophy for public clients, including your firm's philosophy regarding average duration, maturity, investment types, credit quality, and yield. 2. Describe in detail your investment process, as you would apply it to City of La Quinta, CA's portfolio. 3. What are the primary strategies for adding value to portfolios? 4. Describe the process you would recommend for establishing the investment objectives and constraints for this account. $ 33 5. Describe in detail your process of credit risk management, including how you analyze credit quality, monitor credits on an ongoing basis, and report credit to governmental accounts. 6. Describe your firm's trading methodology. 7. Describe your firm's decision-making process in terms of structure, committees, membership, meeting frequency, responsibilities, integration of research ideas, and portfolio management. 8. Describe your research capabilities as they would pertain to governmental accounts. What types of analysis do you use? 9. Describe the firm's approach to managing relationships with the broker-dealer community. E. Portfolio Management 1. Are portfolios managed by teams or by one individual? 2. What is the average number of accounts handled per manager? 3. Which professional staff member will be the primary client contact for City of La Quinta, CA? 4. How frequently are you willing to meet with us? 5. Describe procedures used to ensure that portfolios comply with client investment objectives, policies, and bond resolutions. F. Fees Charged 1. Please include a copy of your firm's fee schedule applicable to this RFP. 2. Identify any expenses that would not be covered through this fee structure and would be required in order to implement the firm's program. 3. Is there a minimum annual fee? G. Performance Reporting 1. Please report on all accounts under $100 million. 2. Please provide performance history for governmental accounts for the last five years. 3. Please provide risk measurements for governmental accounts for the last five years. 4. Indicate whether your returns are calculated and compiled in accordance with the Association for Investment Management and Research (AIMR/CFA Institute) 33 standards. 5. Do your reports conform to the State of California reporting standards? Are you willing to customize your reports to meet our specifications? 6. How will you notify us of investment transactions? 7. Are confirmations of investment transactions sent directly by the broker/dealer to the client? 8. Do your reports include rating information on investments which is required by GASB 40? H. References Provide a list of at least five (5) client references in California. References should be public agencies with portfolio size and investment objectives similar to City of La Quinta, CA. Include length of time managing the assets, contact name, and phone number. I. Insurance Requirements Exhibit A defines the insurance requirements that will need to be met prior to the [Board/Council]'s approval of any agreement for services. J. Submittal of proposals 1. Seven (7) copies of the proposal shall be submitted in a sealed envelope bearing the caption RFP for (City of La Quinta, CA) and addressed to: City of La Quinta, CA 78-495 Calle Tampico La Quinta, CA 92253 Attention: Finance Director/Treasurer 2. Proposal must be received no later than [Time] PST on [Month, Day, and Year]. 3. Proposals should be verified before submission. The City of La Quinta, CA shall not be responsible for errors or omissions on the part of the respondent in preparation of a proposal. The City of La Quinta, CA reserves the right to reject any and all proposals, to wave any irregularities, or informalities in the proposals, and to negotiate modifications to any proposal. Enclosures: Investment Policy Treasurers Report 36 Appendix H City of La Quinta Permissible Investment Chart - Professional Portfolio Management Firm (1) (2) (3) (4) (5) (6) (7) (8) California Government Code Section Investment Category Maximum Maturity Authorized Investment Limits (% of Portfolio) Credit Rating Limits Comments Allowed per City Policy Allowed per Professional Portfolio Management Firm 53601(a) Local Agency Bonds 5 Years None None No No 53601(c) State of California Obligations 5 Years None None No No 53601(d) CA Local Agency Obligations 5 Years None Multiple No No 53601(i) Repurchase Agreements 1 Year None None No No 53601(i) Reverse Repurchase Agreements 92 Days 20% of the base value of the portfolio None No No 53601(i) Securities Lending Agreements 92 Days 20% of the base value of the portfolio None No No 53684 County Pooled Investments None None None No No 53632 Interest bearing active deposits None None None Collateralized 110% Yes Yes 53601(f) Bankers Acceptances 180 Days 40% None "AA" or better No Yes 53601(h) Negotiable CD's 5 Years 30% None Yes Yes 53601(k) Mutual Funds None 20% Multiple No Yes 53601(n) Asset Backed Securities 5 Years 20% AA No Yes Cash and Equivalents None None None Yes Yes 16429.1 LAIF None None None Yes No 53601(b) US Treasuries 5 Years None None Yes Yes 53601(e) US Agencies 5 Years None None Yes Yes 53601(g), 53635 Commercial Paper 270 Days 25% of portfolio A-1/P-1/ F-1 Yes Yes 53601(k) Medium Term Notes 5 Years 30% A Yes Yes 38 Money Market Mutual Funds None 20% Multiple Yes Yes 53601(m) Time Deposits 5 Years None None Yes Yes Collateralized Bank Deposits (including non- negotiable CD's) 5 Years None None Yes Yes Source of Columns (1) through (5) - Investment: Investment Portfolio Reporting Practices CA Debt and Investment Advisory Commission. Note: The Professional Portfolio management Firm (PPMF) is not required to adhere to the City's buy and hold policy and does not need City Manager or City Treasurer approval to make permissible deposits and investments as detailed in column (8). 39 Appendix I Investment Management Process and Risk Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee each person, treasurer, or governing body authorized to make investment decisions on behalf of local agencies. Trustees are subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors). Risk is inherent throughout the investment process. There is investment risk associated with any investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity. Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer-term investments Another element of market risk is liquidity risk. Instruments with unique call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities. Default risk represents the possibility that the borrower may be unable to repay the obligation as scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum. The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for another or selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management. The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust. Chapter II. Fund Management Local Agency Investment Guidelines 2010 Investment Advisory Commission Issued by California Debt and 40 Appendix J GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face 40 value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. 1. FNMAs (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder- owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. 2. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage-lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. 3. FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi- annual coupons. Interest is calculated on a 360-day, 30 day month basis. 4. FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. 5. FICBs (Federal Intermediate Credit Bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine-month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis. 6. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), Tennessee Valley Authority notes (TVA's), and Student Loan Association notes (SALLIE-MAE's). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit through December 31, 2013. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open- market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must 41 purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass-throughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund) - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $50,000,000 for any agency. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers 42 include Securities and Exchange Commission (SEC)- registered securities broker-dealers, banks and a few unregulated firms. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value ofnot less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo) - A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security"buyer" in effect lends the"seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RRP extensively to finance their positions. Exception: When the Fed is said to be doing RRP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, 43 delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. POWER POINTS FAC MEETING MAY 9, 2018 City of La Quinta PARS Pension Rate Stabilization Program (PRSP) May 9, 2018 City of la quinta ▎2 Contacts Mitch Barker Executive Vice President mbarker@pars.org (949)310-4876 Kevin O’Rourke Senior Consultant kevin@kolgs.org (707) 249-5356 Chris Tsuda Senior Portfolio Manager christiane.tsuda@highmarkcapital.com (858) 551-5359 Hoddy Fritz Director hoddy.fritz@highmarkcapital.com (949) 553-7141 City of la quinta ▎3 Pars Trust Team Corporate Experience 34 years (1984 –2018)155 years (1863 –2018)99 years (1919 –2018) Plans Under Administration 1,600+ plans,850+ public agencies, 400,000+ participants Dollars under Administration Over $2.8 billion Over $4.0 trillion Over $13.8 billion under management Trust Administrator & Consultant Trustee Investment Manager •Recordkeeping/sub-trust accounting •Actuarial coordination •Monitor contributions/process disbursements •Monitor plan compliance •Ongoing client liaison •Safeguard plan assets •Oversight protection •Plan fiduciary •Custodian of assets •Investment sub-advisor to U.S. Bank •Open architecture •Investment strategy and asset allocation development •Investment policy assistance City of la quinta ▎4 PARS Pension Rate Stabilization Program for prefunding pension obligations The City of la quinta ▎5 Pension Funding Status As of June 30, 2016, City of La Quinta’s CalPERS pension plan is funded as follows*: Actuarial Liability $42.2 Assets $30.1 M Unfunded Liability $12.1 M Funded Ratio 71.4% Employer Contribution Amount (FY 17-18)$1.1 M Projected Employer Contribution Amount (FY 24-25)$2.2 M (104.3% ↑) * Data from Agency’s 2016-17 CalPERS actuarial valuation City of la quinta ▎6 18.00% 20.00% 22.00% 24.00% 26.00% 28.00% 30.00% 32.00% 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25% of PayrollTotal Contributions (%) Projected Employer Contributions (Misc.) Projected misc. contributions increase from $1.1M to $2.2M* (104.3% ↑) * Data from Agency’s 2016-17 CalPERS actuarial valuation City of la quinta ▎7 •Assets are sub-accounted for separately •Prefund one now and the other later •Addresses unfunded liabilities •Can choose different investment risk tolerance levels for each •Can access funds at anytime; OPEB for OPEB and pension for pension •Assets (OPEB and Pension) aggregate and reach lower fees on tiered schedule sooner – saving money! •No cost to set up; no fees until assets are added THE PARS IRS -Approved Combination 115 Trust prefund Reimburse agency Pay Provider Reimburse agency Pay retirement system OPEB (GASB 45/75) PRSP (GASB 68) Retiree Medical Benefits Pension Rate Stabilization Program or or City of la quinta ▎8 PARS Client list –PRSP (145)Updated: May 2018 CITIES & TOWNS Alameda Bell Gardens Beverly Hills Brea Brisbane Burlingame Capitola Chino Hills Colma Corcoran Coronado Cudahy Cypress Daly City Dublin El Centro El Segundo Emeryville Escondido Fountain Valley Fullerton Glendale Half Moon Bay Healdsburg Hercules Huntington Beach La Mesa Lake Forest Lodi Los Altos Hills Los Gatos Manhattan Beach Morgan Hill Napa National City Norwalk Oakley Oroville Palmdale Palo Alto Pasadena Pico Rivera Piedmont Pleasanton Port Hueneme Rancho Cucamonga Redwood City Rohnert Park Rolling Hills San Ramon Santa Ana Santa Clara Sausalito Solana Beach Stanton Stockton Thousand Oaks Tiburon Tustin Union City Upland Vallejo Villa Park West Covina West Sacramento Westminster Yountville Yuba City Yucca Valley COUNTIES Calaveras Humboldt Kings Lassen Nevada Placer Plumas Riverside San Benito Siskiyou Solano Sutter Tulare SPECIAL DISTRICTS Alameda County MAD Central Contra Costa Sanitary District Delta Diablo (Sanitation District) East Bay Regional Park District East Orange County Water District El Dorado Hills County Water District Fallbrook Public Utility District Goleta West Sanitary District Great Basin Unified APCD Housing Authority of the County of Santa Cruz Humboldt Bay Municipal Water District Mesa Water District Midpeninsula Regional Open Space District Midpeninsula Water District Mojave Desert AQMD Montecito Fire Protection District Monterey Bay Air Resources District Moraga-Orinda Fire Protection District Municipal Water District of Orange County Napa County MAD Nevada County Consolidated FD Novato Sanitary District Rancho Cucamonga Fire PD South Coast Water District Southern Marin Fire Protection District Superior Court of CA -County of Kern Sweetwater Springs Water District Three Valleys Municipal Water District Twentynine Palms Water District West Bay Sanitary District Yorba Linda Water District EDUCATION DISTRICTS Citrus CCD Coast CCD Grossmont-Cuyamaca CCD Hartnell CCD Marin CCD Pasadena CCD San Bernardino CCD San Luis Obispo CCD (Cuesta College) Victor Valley CCD Yosemite CCD Alta Loma Unified School District Bass Lake Joint Union ESD Beverly Hills USD Calistoga Joint USD Campbell Union HSD Corning Union ESD Coronado USD Cotati-Rohnert Park USD Fontana USD Hermosa Beach City SD Hesperia Unified SD Lakeside Union SD Lemon Grove SD Natomas USD Ocean View SD Ontario-Montclair SD Placer Union HSD River Delta USD San Marino USD Santa Rita Union SD Visalia USD Whittier City SD City of la quinta ▎9 1 Complete Local Control over Assets City has complete control over contributions and disbursements; timing, amount, and risk tolerance level 2 Pension Rate Stabilization Assets can be transferred to retirement system plan at the City’s direction, which can reduce or eliminate large fluctuations in Employer contributions to retirement system 3 Rainy Day Fund Emergency source of funds when Employer revenues are impaired based on economic or other conditions 4 Lower Costs 115 Trust might have lower overall administrative and investment management costs compared to the retirement system Why Prefund Pension Obligations? City of la quinta ▎10 8 Diversified Investing/Potential for Greater Return than General Fund Can choose risk tolerance level for City’s unique needs 5 Addresses Pension Liabilities for GASB 68 Contributions placed in an exclusive benefit trust address City’s unfunded pension liability 6 Improved Credit Ratings Rating agencies may look favorably upon actions to reduce liabilities 7 Actuarially Sound Retirement System Provide integrity and security for the source of funding for retirement benefits Why Prefund Pension Obligations? City of la quinta ▎11 HighMark Capital Management About HighMark Capital Management, Inc. 12 *Includes predecessor organizations. HighMark Capital Management, Inc. registered with the SEC as an investment adviser on August 7, 1998. LONGEVITY Managing assets for clients since 1919* STABILITY Investment boutique structure headquartered in San Francisco backed by global strength within MUFG Union Bank, N.A. and Mitsubishi UFJ Financial Group Asset Class Client Base TALENT 44 investment professionals 26 professionals hold the Chartered Financial Analyst® (CFA) designation 23 years average industry experience ASSETS UNDER MANAGEMENT $13.8 billion as of 3/31/2018 Equity $5.5 billion Fixed Income $4.3 billion Liquidity $2.7 billion Cash $1.3 billion Institutional $6.9 billion Wealth Mgmt $6.9 billion City of la quinta ▎13 Simple Investment Approach 1. Input Phase -Target Discount Rate -Risk Tolerance -Investment Philosophy -Asset Allocation -Timing on use of funds 2. Model Portfolios -Cap. Appreciation –65%-85% Equity -Balanced –50%-70% Equity -Moderate –40%-60% Equity -Mod-Conservative –20%-40% Equity -Conservative –5%-20% Equity 3. Dedicated Portfolio Manager -Makes Recommendation -Fiduciary Responsibility -Drafts Investment Policy -Annual On-site Reviews -Cell phone access Establish: Determine your Strategic Asset Allocation Strategy Each Investment Objective reflects the associated PARS Diversified Portfolio as of 9/30/2017. A client ‘s portfolio construction may vary depending on the client's investment needs, objectives, and restrictions as well as the prevailing market conditions at the time of investment. Moderately Conservative Moderate Expected Standard Deviation (Volatility)Expected ReturnBalanced Capital Appreciation Efficient frontier of portfolios with varying ranges of equities and fixed income Conservative Equity Fixed Income Cash Conservative 5-20%60-95%0-20% Moderately Conservative 20-40%50-80%0-20% Moderate 40-60%40-60%0-20% Balanced 50-70%30-50%0-20% Capital Appreciation 65-85%10-30%0-20% 14 Construct Your Plan’s Portfolio: PARS Diversified Portfolios –Active v. Passive 15 Each Investment Objective reflects the associated PARS Diversified Portfolio as of 3/31/2018. A client ‘s portfolio construction may vary depending on the client's investment needs, objectives, and restrictions as well as the prevailing market conditions at the time of investment. Specific securities identified above do not represent all of the securities purchased, sold or recommended for advisory clients, and you should not assume that investments in the securities identified in this presentation were or will be profitable. HighMark Plus (Active)Index Plus (Passive) Equity Ticker Fund Name Ticker Fund Name Large Cap Blend SMGIX Columbia Contrarian Core Z IVV iShares Core S&P 500 Large Cap Blend VGIAX Vanguard Growth & Income Adm Large Cap Value DODGX Dodge & Cox Stock IVE iShares S&P 500 Value Large Cap Growth HNACX Harbor Capital Appreciation Ret IVW iShares S&P 500 Growth Large Cap Growth PRUFX T. Rowe Price Growth Stock I Mid Cap Blend IWR iShares Russell Mid-Cap IWR iShares Russell Mid-Cap Real Estate VNQ Vanguard REIT ETS VNQ Vanguard REIT ETF Small Cap Value UBVLX Undiscovered Managers Behavioral Val L IWN iShares Russell 2000 Value Small Cap Growth PRJIX T. Rowe Price New Horizons I IWO iShares Russell 2000 Growth International NWHMX Nationwide Bailard Intl Eqs Instl International DODFX Dodge & Cox International Stock International MGRDX MFS International Growth I EFA iShares MSCI EAFE Emerging Markets HHHYX Hartford Schroders Emerging Mkts Eq I VWO Vanguard FTSE Emerging Markets ETF Fixed Income Ticker Fund Name Ticker Fund Name Short Term Bond VFSUX Vanguard Short-Term Investment-Grade Adm VFSUX Vanguard Short-Term Investment-Grade Adm Intermediate Term Bond PTTRX PIMCO Total Return Instl AGG iShares Core US Aggregate Bond Intermediate Term Bond PTRQX Prudential Total Return Bond Q Intermediate Term Bond NWJJX Nationwide Loomis Bond InSvc Intermediate Term Bond DBLFX DoubleLine Core Fixed Income Cash Characteristics Fund Manager Dependency Higher dependency on portfolio manager skill Tracks index, thus little-to-no dependency on portfolio manager skill Opportunity to Outperform Index Opportunity to outperform index Typically performs below index after fees Costs Higher expense ratios due to portfolio manager skill Lower expense ratio due to little dependency on portfolio manager skill or opportunity for outperformance City of la quinta ▎16 HighMark Capital Management Returns Equity (%)1 Year 3 Years 5 Years Capital Appreciation 65-85%11.28%7.18%8.77% Balanced 50-70%9.98%6.11%7.22% Moderate 40-60%8.34%5.37%6.28% Moderately Conservative 20-40%5.73%3.83%4.47% Conservative 5-20%3.69%2.72%3.17% * Past performance does not guarantee future results RETURNS AS OF MARCH 31, 2018 City of la quinta ▎17 Plan Set-Up Fee:Ongoing Fees: None 0.35%*for assets under $5 million 0.25%for assets $5-10 million 0.20%for assets $10-15 million 0.15%for assets $15-50 million 0.10%for assets over $50 million Program Fees Plan Set-Up Fee:Ongoing Fees: None 0.25%for assets $0-10 million 0.20%for assets $10-15 million 0.15%for assets $15-50 million 0.10%for assets over $50 million Trust Administration/Consulting Fees* Discretionary Trustee/Investment Management Fees* *PARS does not receive any compensation from the investments or any commissions, back-end loads, or any other forms of compensation. **Fees as of March 31, 2018. Subject to change due to rebalancing. City of la quinta ▎18 Key Program Advantages 1 IRS-approved trust structure which protects the City from Day 1 of prefunding 2 Market pioneer and leader with 145 PRSP client agencies in California 3 Low cost prefunding solution with economies of scale and low investment fees 4 No start-up costs 5 No minimum annual fees 6 No fees charged until assets are in trust 7 No trading fees 8 No termination fees or restrictions 9 True, historical return information over 1, 3, 5 and 10 year periods –not composites 10 Five (5) risk tolerance portfolios that can be either actively or passively managed in addition to a customized portfolio option POWER POINTS FAC MEETING MAY 9, 2018 1 Financial Advisory Commission Regular Quarterly Meeting May 9, 2018 Financial Advisory Commission May 9, 2018 B2‐Approve Investment Policy for Fiscal Year 2018/19 C3‐Receive and File the 4th Quarter Fiscal Year 2 Summary of Changes •Aligned with State Code •Removed redundant information, most notably charts •Removed RFP for professional services and broker questionnaire Allowable Investments Investment Type 2017-18 Policy 2018-19 Policy CD's 30%30% U.S Treasuries No limit No Limit Federal Agencies 30% with differing caps on amount per issuer No limit, and uniform caps on amount per issuer Prime Commercial Paper 15%25% LAIF $50 Million $65 Million Money Market Mutual Funds 20%20% Corporate Notes 10%30% Professionally Managed Account 10%50% Local Agency Bonds 30%No Limit All Other Securities Not listed As allowed by Code 3 Investment Performance Jan-17 Mar-17 Mar-18 Difference Effective Rate of Return (FYTD) 0.61% 0.71% 1.18% + 47 bps Fiscal YTD Earnings 453,055$ 675,160$ 1,156,392$ + $481,232 Q3 Earnings 295,330$ 464,109$ + $168,779 Looking Forward: *LAIF rate of return has risen another 14 bps to 1.66% in April *In holdings at First Empire, $9.6 million will roll-off at 1.29% this year, and be re-invested at current rates *Current treasury rates are at 2.24% 1YR, 2.52% 2YR and 2.84% 5YR, with agencies and CD's typically paying 10-30 bps higher *The City could choose to move additional money from LAIF into higher-yielding securities and still maintain liquidity Financial Advisory Commission May 9, 2018 S1‐Discuss Preliminary Proposed Budget for Fiscal Year 2018/19 C3‐Receive and File the 4th Quarter Fiscal Year 4 Guiding Principals •Recurring revenues for recurring expenses •One-time revenues for one-time costs •Maintain adequate cash flow and emergency reserve amounts General Fund Summary Revenue $52,164,400 Less Measure G (8,455,000) Operating Revenue 43,709,400 Less Operating/CIP Expenses (50,475,113) Budget Surplus/(Deficit)($6,765,713) Measure G for Police Services 3,150,000 Measure G for CIP 3,296,113 General Fund CIP Savings 1,130,650 Resources over Requirements 811,050 Additional Proposals (784,000) Budget Surplus 27,050 $28,000 two additional proposals ‐ Sunline Transit ‐ Fee Study 5 REVENUE CATEGORY 2017/18 2018/19 Tax Revenues 39,664,100 41,659,000 1,994,900 4.79% Licenses & Permits 1,299,700 1,205,900 (93,800) ‐7.78% Intergovernmental 7,265,000 7,045,600 (219,400) ‐3.11% Charges for Services 1,292,200 993,200 (299,000) ‐30.10% Fines 266,000 275,500 9,500 3.45% Use of Money 400,000 470,000 70,000 14.89% Miscellaneous 510,200 515,200 5,000 0.97% Transfers In 190,400 ‐ (190,400) ‐100% TOTAL 50,887,600 52,164,400 1,276,800 2.45% 18/19 vs 17/18 Revenues •2.45% overall increase compared to 2017/18 –Sales tax: $578,900 increase to $17.3M –Property tax: $159,900 increase to $8.7M –TOT: $753,100 increase to $9.2M •Offset (Decrease) by: –Charges for Services: $229,000 –Intergovernmental: $219,400 –Transfers In: $190,400 6 Expense Category Police 17,114,000$ 34% Fire 6,957,600 14% Salaries & Benefits 10,065,100 20% Transfers Out 6,909,763 14% Other Contracts 3,077,950 6% Maintenance & Operations 3,023,200 6% Internal Service Charges 2,845,000 6% Utilities 467,500 1% Capital Expenses 15,000 0.03% TOTAL 50,475,113$ 100% Budget Total Budget Breakdown Police Services $15,879,100 $14,451,364 $14,085,959 2018/19 Increase $1,234,900 2017/18 Increase 1,427,736 2016/17 Increase 365,405 3‐Year Increase $3,028,041 ‐ No service/patrol hour adjustments ‐ Labor costs & pension contribution rates rising 7 Fire Services $6,957,600 $5,816,590 $5,220,358 2018/19 Increase $227,600 2017/18 Increase 913,410 2016/17 Increase 596,232 3‐Year Increase $1,737,242 ‐ Property tax revenue covers fire service costs ‐ State labor contracts General Fund Expenditures Expense Increases Decreases SilverRock Contribution ( $384,000) PW/Eng. Contract Services ( $226,500) OPEB Trust / Land Acquisition ( $3,523,400) Recreation Programs $162,660 Fire Services $ 227,600 Parks Maintenance ‐ ISFs $431,000 Police Services $ 1,234,900 $ 2,056,160 ( $4,133,900) 8 Capital Improvements (Measure G) 3,296,113$ Capital Improvements (Baseline)1,552,000 Capital Improvements (Savings)1,130,650 Landscape & Lighting Fund 624,000 Gas Tax Fund 255,000 Deceased LQ Officers Fund 2,000 SilverRock Fund 50,000 TOTAL 6,909,763$ TRANSFERS OUT SUMMARY Centralized Services Fluctuations due to: –CIP Carryovers –OPEB Trust –Land Acquisition Internal Service Funds •Used fund balance (savings) in 17/18 •Infrastructure/Park upgrades GF Allocations 17/18 18/19 Change Equipment/Facilities 379,400 537,200 157,800 Info. Technology 667,000 982,200 315,200 Park Equipment 300,000 655,000 355,000 Insurances 649,000 670,600 21,600 Total Allocations 1,995,400 2,845,000 849,600 ISF Expenses 17/18 18/19 Change Equipment/Facilities 1,079,300 923,700 (155,600) Info. Technology 917,100 1,059,700 142,600 Park Equipment 757,000 675,000 (82,000) Insurances 972,740 921,100 (51,640) Total Expenses 3,726,140 3,579,500 (146,640) 9 External Proposals HARC Health Survey $10,000 One Future $50,000 Fourth of July Partnership $40,000 Old Town Artisan Studio $50,000 La Quinta Book $54,000 Sunline Transit Agency (new)$15,000 ‐ $20,000 TOTAL $224,000 10 Current Position Budget – 50% Housing Fund 50% City Clerk Fund $205,000 $318,000 $57,000 Internal Proposals Reserve/Trust As of 6/30/17 Emergency Reserve Natural Disaster 16,534,000$ Economic Disaster - Total 16,534,000 Cash Flow Reserve 4,134,000 Capital Replacement - Total Reserves 20,668,000 Pension Trust Fund - Unassigned Reserves 14,865,926 Overall Total 35,533,926$ General Fund Reserves 11 Date 2018/19 BUDGET SCHEDULE April 11 Financial Advisory Commission preliminary Measure G General Fund budget overview April 17 City Council - first Capital Improvement budget study session May 1 City Council - first budget study session focused on the General Fund and Internal Service Funds May 9 Financial Advisory Commission update on the General Fund and Capital Improvement Budget May 15 City Council - second budget study session focused on all special funds and provides an update on the General Fund if needed. Adopt CIP Budget. June 5 City Council - third budget study session overall update on all funds and final direction on unfunded requests June 13 Financial Advisory Commission - final review of the General Fund June 19 City Council - Adopt Budget Budget Schedule Measure G Sales Tax Revenue 8,455,000$ Police Services (3,150,000) Capital Improvements (3,296,113) Public Safety Fund Deposit (200,000) Available for Appropriation 1,808,887$ MEASURE G SUMMARY $200,000 $205,000 $57,000 $‐ $100,000 $200,000 POLICE SAFETY FUND HIGHWAY 111 PLAN STAFFING ADJUSTMENT Funded Internal Requests FY 2018/19 Proposed Budget Update (5/15/18) General Fund Revenue 52,164,400$ General Fund CIP Savings 1,130,650$ Total Current Resources 53,295,050$ Less Operating/CIP Expenses (50,727,113)$ Total Current Expenses (50,727,113)$ Budget Surplus 2,567,937$ General Fund Update 12 Discussion and Questions Financial Advisory Commission May 9, 2018 B1‐Review the City’s General Fund Balance and Reserves Policy C3‐Receive and File the 4th Quarter Fiscal Year 13 Summary of Process •FAC subcommittee established 8/9/2017 •Subcommittee meetings held 8/21, 8/29, 9/11, 9/21, 9/29, and 10/18/2017 •First draft of report presented to full FAC 11/15/2017 •Study sessions held at City Council meetings 2/6 and 4/3/2018 and at FAC meetings 2/12 and 4/11/2018 Policy •Defines Fund Balance and Reserve Categories •Sets Target Funding •Outlines use of Reserves •Recommends method for achieving Targets 14 Possible Initial Funding* *Subject to Council direction 5/15/2018 Category Current Funding Targets Initial Funding Percent of Target Funded Emergency Reserve Natural Disaster 16,534,000$ 10,000,000$ 7,400,000$ 74.00% Emergency Reserve Economic 11,000,000$ 8,140,000$ 74.00% Cash Flow 4,134,000$ 5,000,000$ 5,000,000$ 100.00% Capital Replacement 10,000,000$ 5,000,000$ 50.00% Pension Trust 10,000,000$ 2,000,000$ 20.00% Total Reserves 20,668,000$ 46,000,000$ 27,540,000$ 59.87% Unassigned Fund Balance 14,865,926$ 8,000,000$ 7,993,926$ 99.92% Land Acquisition Account 2,000,000$ 2,000,000$ Discussion and Questions 15 Financial Advisory Commission Next Special Meeting is on June 13, 2018