2019 11 13 FAC MinutesFINANCIAL ADVISORY COMMISSION MINUTES NOVEMBER 13, 2019
REGULAR QUARTERLY MEETING
FINANCIAL ADVISORY COMMISSION
MINUTES
WEDNESDAY, NOVEMBER 13, 2019
CALL TO ORDER
A regular quarterly meeting of the Financial Advisory Commission (Commission) was
called to order at 4:00 p.m. by Chairperson Mills.
PRESENT: Commissioners Batavick, Hoffner, Hunter, Rosen, and Chairperson Mills
ABSENT: Commissioner Twohey (joined meeting at 4:19 p.m.)
VACANCY: One
PLEDGE OF ALLEGIANCE
Commissioner Rosen 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 – None
CONSENT CALENDAR
1. APPROVE MINUTES DATED OCTOBER 9, 2019
2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JULY
31, 2019
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
AUGUST 31, 2019
4. RECEIVE AND FILE THE FIRST QUARTER 2019/20 TREASURY REPORTS
FOR JULY, AUGUST, AND SEPTEMBER 2019
MOTION – A motion was made and seconded by Commissioners Rosen/Hunter to
approve the Consent Calendar as recommended. Motion passed: ayes 5, noes 0,
absent 1 (Twohey), vacancy 1.
FINANCIAL ADVISORY COMMISSION MINUTES NOVEMBER 13, 2019
REGULAR QUARTERLY MEETING
BUSINESS SESSION
1. RECEIVE AND FILE THE ANNUAL MEASURE G SALES TAX OVERSIGHT
COMPLIANCE REPORT
Finance Director Romero presented the staff report, which is on file in the Finance
Department.
The Commission discussed the City’s ten-year fiscal projections; the City’s current
fiscal stability due to the passing of Measure G transactions and use tax increase in
2016; the City’s efforts to secure grant funding; community projects funded with
Measure G revenues, such as the skate park, the SilverRock Event Site, etc.; regional
collaborative efforts between cities to evaluate public safety service level needs,
anticipated cost increases, and ability to mutually mitigate costs while maintaining
the current level of services; public safety costs constitute the largest percentage of
the City’s annual budget, thus when savings are realized, they are substantive.
The Commission further discussed whether there is a benefit to establish a cap on
the Measure G reserves; the City’s prudent spending practices; healthy reserves will
secure the City’s future fiscal stability; and importance to exercise caution in
restricting funds or allocating them to capital improvement projects, as it can affect
the City’s ability to respond to unanticipated occurrences.
COMMISSIONER TWOHEY JOINED THE MEETING AT 4:19 P.M.
MOTION – A motion was made and seconded by Commissioners Batavick/Rosen to
receive and file fiscal year 2018/19 Measure G Sales Tax Compliance Report. Motion
passed: ayes 6, noes 0, vacancy 1.
STUDY SESSION
1. DISCUSS THE FISCAL YEAR 2018/19 YEAR-END BUDGET REPORT AND
AMENDED BUDGET CARRYOVERS
Finance Director Romero presented the staff report, which is on file in the Finance
Department.
The Commission discussed fiscal years 2017/18 and 2018/19 Measure G revenues,
allocations for SilverRock Event Space and X-Park, and current available fund
balance; public safety service cost savings, related grant funding secured by
Riverside County, and maintaining the same level of services; and Riverside County
Sheriff’s Department change in leadership, and collaborative efforts to establish a
cohesive and united front throughout all areas they service.
Commission discussion followed regarding non-spendable balances, including the
write-off of four uncollectible interfund loans for the Civic Center, SilverRock, Fire
Protection, and Street Facility; disposal of portions of land held for resale on
FINANCIAL ADVISORY COMMISSION MINUTES NOVEMBER 13, 2019
REGULAR QUARTERLY MEETING
Highway 111 and SilverRock; ability to use reserves to make a lump sum payment
towards the City’s CalPERS pension trust to reduce the unfunded liability; fiscal year
2018/19 carryovers; current reserve balances; and Council’s ability to allocate
unassigned funds to the City’s not-fully-funded Pension Trust Fund and Capital
Replacement reserve targets; the reserve study is reviewed every five years and
amended as needed; and applicability of Transient Occupancy Tax mitigation fees to
certain parcels originally intended for commercial use that were subsequently built
out for residential uses instead.
2. DISCUSS THE FISCAL YEAR 2019/20 FIRST QUARTER BUDGET REPORT
Financial Services Analyst Hallick presented the staff report, which is on file in the
Finance Department.
The Commission discussed the City reviews its budget comprehensively every
quarter.
3. DISCUSS ACTIVE ECONOMIC SUBSIDY AGREEMENTS
Finance Director Romero presented the staff report which is on file in the Finance
Department.
The Commission discussed the terms and financial obligations under the two
economic subsidy agreements; and developer incentives offered by other cities in the
Coachella Valley.
DEPARTMENTAL REPORTS
1. SECOND QUARTER 2019 (APRIL – JUNE) SALES TAX UPDATE FOR THE
CITY OF LA QUINTA
Financial Services Analyst Hallick presented the staff report, which is on file in the
Finance Department.
The Commission discussed the different allocations of sales tax revenues based on
brick-and-mortar, online, delivery, furniture, and automobile sales.
2. 2019 DEVELOPMENT IMPACT FEE (DIF) STUDY SUBCOMMITTEE
UPDATE
Financial Director Romero and Financial Services Analyst Hallick presented the staff
report, which is on file in the Finance Department.
The Commission discussed the current Transportation DIF has been discounted by
22% for quite some time; methodology used to adopt fees based on a DIF study
conducted every five-years and the City’s intent to stimulate growth and
FINANCIAL ADVISORY COMMISSION MINUTES NOVEMBER 13, 2019
REGULAR QUARTERLY MEETING
development; increase in fees has not negatively impacted development; and
comparison of La Quinta’s fees to other Coachella Valley cities indicate that La
Quinta’s fees are on the lower end of the spectrum.
3. VERBAL UPDATE ON 2018/19 AUDITS
Financial Director Romero presented a timeline of the completed and upcoming City
audits; and due dates for completing the City’s annual financial reports.
4. VERBAL UPDATE ON BANK OF THE WEST BANKING SERVICES
IMPLEMENATION
Financial Services Analyst Hallick provided an update on the transitioning of City’s
banking services from Wells Fargo to Bank of the West; Staff has completely
transitioned signature cards for checks, cash vault management services, accepting
deposits, and credit card terminals; and currently underway are accounts payables,
testing checks, armored service deposits, payroll, and City credit cards for Directors.
COMMISSIONERS’ ITEMS
Commissioner Batavick inquired if the City anticipates conducting new studies in
2020. Staff said general policy updates are continuous, and a transient occupancy
tax (TOT) study may be conducted in the spring of 2020, which would compare La
Quinta’s TOT rates to other local agencies. Scheduled for review are also the City’s
457 Deferred Compensation Plans account contract fees.
ADJOURNMENT
There being no further business, a motion was made and seconded by Commissioners
Rosen/Hoffner to adjourn at 6:09 p.m. Motion passed: ayes 6, noes 0, vacancy 1.
Respectfully submitted,
JESSICA DELGADO, Management Assistant
City of La Quinta, California