2019/20 Measure G Sales Tax Annual ReportANNUAL MEASURE G SALES TAX OVERSIGHT REPORT FOR
FISCAL YEAR ENDED JUNE 30, 2020
PURPOSE
The Financial Advisory Commission (FAC) provides oversight of Measure G
sales tax revenues. This fourth Annual Measure G Sales Tax Oversight Report
covers the fiscal year July 1, 2019 through June 30, 2020. This report also
provides a summary of the Measure G budget for the fiscal year ending June
30, 2021. Exhibit A includes a detailed recap of all Measure G activity.
This Report clearly shows the importance of Measure G revenues to the
current and future financial health of the City. The uses of these revenues
follow the City’s Sacred Values which focus on - Health and Wellness, High
Quality Aesthetics, a Vibrant and Safe Community, a Visually Beautiful City
and Cultural Diversity. Following these Sacred Values secures our City’s
standing as “The Gem of the Desert.”
REPORT HIGHLIGHTS
•Since inception, over $18
million or 45% of Measure
G funds have been
allocated to improving
citywide infrastructure and
public recreational
facilities.
•Public safety services are a
priority of La Quinta and
have been supported with
Measure G funds.
•Fiscally responsible
budgeting, prudent long-
term financial projections,
funds oversight, and
financial transparency have strengthened the City’s reserves since the
implementation of Measure G in April 2017.
•No Measure G funds have been used for Covid-19 related purposes. The
City’s strong fiscal health continues to allow the City to respond quickly
and effectively to Covid-19 related financial impacts to City operations,
and provides much needed support to local businesses.
FISCAL YEAR 2019/20 REVENUES
Total Measure G sales tax revenues for fiscal year 2019/20 were $10,310,526.
As a result of the pandemic, this fiscal year ended with many unexpected
challenges and uncertainties. Abruptly in March 2020, mandatory Statewide
stay at home orders closed non-essential businesses, limited travel, restricted
working outside the home, closed hotels, and limited restaurants to take out
orders.
Stronger than anticipated fiscal year-end Measure G sales tax revenues are
primarily the result of both rising online sales with a better collection rate and
La Quinta residents and visitors continuing to support our local economy. With
the City’s financial support, businesses have pivoted operations by taking
advantage of extended outdoor Al Fresco Dining options and Small Business
Economic Relief Loans and Rebates.
REVENUES SINCE INCEPTION
The chart below summarizes Measure G revenues received from fiscal year
2016/17 to 2019/20 and budgeted revenues for 2020/21. Revenues received
in 2019/20 were lower than the previous year because of COVID -19 business
closures. Budgeted revenues for 2020/21 are subject to change as State
mandates are revised and expected seasonal local events are adjusted.
Additionally, the effects of unemployment continue to impact discretionary
travel and spending in our City.
FISCAL YEAR 2019/20 USES
The fiscal year 2019/20 operational expenses and capital improvements were
prioritized and budgeted prior to COVID with a prudent reserve allocation for Budgeted
operational flexibility. The impacts of COVID did not alter essential funding for
public safety or capital projects. By allocating some revenue to reserves, the
City was able to preserve and fully fund public safety and capital projects.
USES SINCE INCEPTION
Each year, in January, the City hosts a community workshop to either affirm
or determine the next year’s budget priorities. Staff then evaluates funding
options such as grants, interagency cost sharing, and use of reserves. Public
safety services have been a community priority since before Measure G, and
with the support of this additional revenue, the City has been able to maintain
the public safety service levels the community desires.
The chart below summarizes uses, since inception, of Measure G funds. The
majority ($18,487,732 or 45%) of these funds are for projects to improve
citywide infrastructure and public recreational facilities.
• Public Safety use shows the City’s continuing commitment to provide all
residents with a safe living environment.
• Infrastructure improvement projects have included numerous road
repairs, street striping projects, drainage improvements to avoid street
flooding, an investment in Highway 111 where since 2016 nearly 80%
of annual sales taxes are collected, an overhaul of landscape medians
north of Highway 111, and the design of updated corporate yard
administrative and crew quarters.
26%
36% 9%
29%
• Recreation projects have included funding for the new X-Park adjacent
to the La Quinta High School, the SilverRock event site, and the design
of a new future Village Art Plaza Promenade connected to the La Quinta
Museum.
• Measure G reserves reflect fiscal responsibility and allow for operational
flexibility by ensuring cash is available for public safety services and
capital improvement projects when these are most efficient to complete.
The chart below summarizes citywide infrastructure improvements and
recreational projects funded with Measure G revenues.
MEASURE G BACKGROUND AND COMPLIANCE SUMMARY
Voters passed Ballot Measure G in November 2016. Measure G provides a
permanent one percent transaction and use tax, effective April 1, 2017, which
is fully allocated to the City of La Quinta and protected from State takeaways.
All Measure G revenues shall be used in accordance with the ballot measure
for costs including police protection, projects such as parks, landscaping and
flood control, programs attracting businesses, youth/senior services, sports
recreation programs, and preserving property values and quality of life.
This report concludes all Measure G tax revenues are properly recorded and
are being used in accordance with the ballot measure.
Prior oversight reports and information on Measure G are located online at
https://www.laquintaca.gov/business/tax -measure. Questions regarding this
report or the use of Measure G funds may be directed to the Finance
Department by calling 760-777-7150 or by email at finance@laquintaca.gov.
EXHIBIT A
MEASURE G REVENUES AND USES SUMMARY
Fiscal Year (FY)
REVENUES
2016/17 Actual $ 1,462,650
2017/18 Actual 9,967,657
2018/19 Actual 10,958,118
2019/20 Actual 10,310,526
2020/21 Budgeted 8,197,200
TOTAL $ 40,896,151
USES
Operational
Capital Reserves Total by Year
2016/17 Eisenhower Dr. Retention Basin 750,000
Measure G Reserves 16/17 (X-Park Funding) 712,650
2017/18 Public Safety Fund 300,000
North La Quinta Landscape Improvements 1,802,576
Citywide Drainage Enhancements 2,407,373
La Quinta Village Road Diet Project 1,972,158
Measure G Reserves 17/18 (X-Park Funding) 147,350
Measure G Reserves 17/18 (Alongi Building Improvements) 800,000
Measure G Reserves 17/18
Measure G Reserves 17/18 (SilverRock Event Site) 321,900
2,216,300
2018/19 Public Safety Fund 850,000
Public Safety Contract Services 2,100,000
Citywide Drainage Enhancements 194,730
North La Quinta Landscape Improvements 2,129,613
SilverRock Event Site 1,300,000
Measure G Reserves 18/19
4,383,775
2019/20 Public Safety Contract Services 2,750,000
Corporate Yard Administration/Crew Quarters 411,013
Highway 111 Corridor Improvements 1,000,000
North La Quinta Landscape Improvements 3,703,369
Village Art Plaza Promenade 310,000
Measure G Reserves 19/20
2,136,144
2020/21 Public Safety Contract Services
X-Park Landscaping
Highway 111 Corridor Improvements
4,545,000
275,000
250,000 3,127,200
1,462,650
9,967,657
10,958,118
10,310,526
8,197,200
TOTAL $ 10,545,000 $ 18,487,732 $11,863,419 $40,896,151
26% 45% 29%
In FY 2018/19, the City allocated $860,000 from Measure G reserves for the XPark. $712,650 from FY 2016/17 and a portion of FY 2017/18
($147,350) reserves.
In FY 2019/20, $800,000 of Measure G reserves was allocated from FY 2017/18 reserves to the SilverRock Event Site Alongi Building
Improvements.
In FY 2020, $321,900 of Measure G reserves was allocated from FY 2017/18 reserves to the SilverRock Event Site.
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BUSINESS SESSION ITEM NO. 3
City of La Quinta
CITY COUNCIL MEETING: November 3, 2020
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2019/20 MEASURE G
SALES TAX COMPLIANCE REPORT
RECOMMENDATION
Receive and file fiscal year 2019/20 Measure G Sales Tax Compliance Report.
EXECUTIVE SUMMARY
• Measure G revenues for fiscal year 2019/20 were $10,310,526 and the
Measure G reserve balance as of June 30, 2020 was $8,736,219.
• The Financial Advisory Commission (FAC) provides oversight of Measure
G revenues and their uses.
• The FAC prepares an annual Measure G Sales Tax Oversight Report to
ensure Measure G revenues and their uses are in compliance with the
ballot initiative.
• At the FAC's meeting on November 4, 2020, the full Commission will
formally receive, review and file this Report.
FISCAL IMPACT - None
BACKGROUND/ANALYSIS
In accordance with the Measure G ballot measure, the FAC provides oversight
of Measure G funds. This Measure G Report was prepared by the Finance
Department with assistance from two FAC members (Commissioners Batavick
and Rosen). The next FAC meeting is on November 4, 2020. This Report will
be presented to the FAC, and subject to their review, received and filed on
this date, with an update to the City's website.
The attached Annual Measure G Sales Tax Oversight Report for Fiscal Year
2019/20 Ended June 30, 2020 (Attachment 1) covers the period from July 1,
2019 through June 30, 2020, provides a summary of the Measure G budget
for fiscal year ending June 30, 2021, and includes an inception to date
summary.
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ALTERNATIVES
The City Council or FAC may request additional information before filing this
Report.
Prepared by: Karla Romero, Finance Director
Approved by: Jon McMillen, City Manager
Attachment: 1. Annual Measure G Sales Tax Oversight Report for Fiscal Year
Ended June 30, 2020
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