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2020 11 04 FACFINANCIAL ADVISORY COMMISSION AGENDA 1 NOVEMBER 4, 2020 REGULAR QUARTERLY MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta REGULAR MEETING ON WEDNESDAY, NOVEMBER 4, 2020 AT 4:00 P.M. ****************************** SPECIAL NOTICE Teleconferencing and Telephonic Accessibility in Effect Pursuant to Executive Orders N-25-20, N-29-20, N-33-20, and N-35-20, executed by the Governor of California in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.), members of the Financial Advisory Commission, the City Manager, City Attorney, City Staff, and City Consultants may participate in this meeting by teleconference. Additionally, pursuant to the above-referenced executive orders, the public is not permitted to physically attend at City Hall the meeting to which this agenda applies, but any member of the public may listen or participate in the open session of this meeting as specified below. Members of the public wanting to listen to this meeting may do so by tuning-in live via https://laquinta.12milesout.com/video/live. Members of the public wanting to address the Financial Advisory Commission, either for public comment or for a specific agenda item, or both, are requested to send an email notification to the La Quinta Finance Department Management Assistant at jdelgado@LaQuintaCA.gov, and specify the following information: 1) Full Name 4) Public Comment or Agenda Item Number 2) City of Residence 5) Subject 3) Phone Number 6) Written or Verbal Comments Financial Advisory Commission agendas and staff www.laquintaca.gov FINANCIAL ADVISORY COMMISSION AGENDA 2 NOVEMBER 4, 2020 REGULAR QUARTERLY MEETING Verbal public comments requests to speak must be emailed to the Finance Department Management Assistant no later than 3:00 p.m. on the day of the meeting; the City will facilitate the ability for a member of the public to be audible to the Financial Advisory Commission and general public for the item(s) by contacting him/her via phone and queuing him/her to speak during the discussion. Only one person at a time may speak by telephone and only after being recognized by the Financial Advisory Written public comments, received prior to the adjournment of the meeting, will be distributed to the Financial Advisory Commission, incorporated into the agenda packet and public record of the meeting, and will not be read during the meeting unless, upon the request of the Financial Advisory Commission Chair, a brief summary of any public comment is asked to be read, to the extent the Finance Department Management Assistant can accommodate such request. It would be appreciated that any email communications for public comments related to the items on the agenda, or for general public comment, are provided to the Finance Department Management Assistant at the email address listed above prior to the commencement of the meeting. If that is not possible, and to accommodate public comments on items that may be added to the agenda after its initial posting or items that are on the agenda, every effort will be made to attempt to review emails received by the Finance Department Management Assistant during the course of the meeting. The is taken on any agenda item to allow the Finance Department Management Assistant to review emails and share any public comments received during the meeting. All emails received by the Finance Department Management Assistant, at the email address above, until the adjournment of the meeting, will be included within the public record relating to the meeting. ****************************** CALL TO ORDER Roll Call: Commissioners: Batavick, Hoffner, Hunter, Rosen, Twohey, Way and Chair Mills PLEDGE OF ALLEGIANCE PUBLIC COMMENT At this time members of the public may address the La Quinta Financial Advisory Commission on any matter not listed on the agenda. Please email Written Public Comments to jdelgado@laquintaca.gov and limit your comments to three minutes (approximately 350 words). The 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 the Brown Act [Government Code Section 54954.2(b)]. FINANCIAL ADVISORY COMMISSION AGENDA 3 NOVEMBER 4, 2020 REGULAR QUARTERLY MEETING CONFIRMATION OF AGENDA ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. Welcome New Appointed Financial Advisory Commissioner Ellen Way CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. Approve Minutes Dated September 30, 2020 2. Receive and File Revenue and Expenditure Report Dated June 30, 2020 3. Receive and File Revenue and Expenditure Report Dated July 31, 2020 4. Receive and File Revenue and Expenditure Report Dated August 31, 2020 BUSINESS SESSION 1. Receive and File the Fiscal Year 2019/20 General Fund Year-End Budget Report 2. Receive and File the Fiscal Year 2019/20 Measure G Sales Tax Compliance Report 3. Recommend Appropriation of Additional Measure G Funding for the SilverRock Park Venue Project No. 2016-08 and Alongi Building Project and Discuss Proposed Phase II Improvements for the SilverRock Park Venue Project 4.Receive and File the First Quarter Fiscal Year 2020/21 First Quarter Budget Report 5. Discuss and Approve the Police Services Review Committee Recommendations for Police Services STUDY SESSION None DEPARTMENTAL REPORTS 1.Finance Department Current and Future Initiatives 2. Second Quarter 2020 (April-June) Sales Tax Update for the City of La Quinta. 3. La Quinta Covid-19 Small Business Emergency Economic Relief Program Verbal Update ADJOURNMENT The next regular quarterly meeting of the La Quinta Financial Advisory Commission will be held on February 10, 2021 commencing at 4:00 p.m. at the La Quinta Study Session Room, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Jessica Delgado, Management Assistant, of the City of La Quinta, do hereby declare that the foregoing Agenda for the Commission meeting was posted on t near the entrance to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at 78-630 Highway 111, and 51-321 Avenida Bermudas, on October 29, 2020. FINANCIAL ADVISORY COMMISSION AGENDA 4 NOVEMBER 4, 2020 REGULAR QUARTERLY MEETING DATED: October 29, 2020 Jessica Delgado, Management Assistant City of La Quinta, California Public Notices The La Quinta City Hall Council Chambers is handicapped accessible. If special equipment is needed for the hearing impaired, please call the -7092, 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 Commission, (760) 777-7092. A one (1) week notice is required. If background material is to be presented to the Commission during a Commission 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 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 SEPTEMBER 30, 2020 SPECIAL MEETING FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, SEPTEMBER 30, 2020 CALL TO ORDER A special meeting of the Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chairperson Mills. This meeting was held by teleconference pursuant to Executive orders N-25-20, N-29- 20, N-33-20, and N-35-20, executed by the Governor of California in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions of the Ralph M. Brown Act (Government Code § 54950 et seq.). PRESENT: Commissioners Batavick, Hoffner, Hunter, Rosen, Twohey and Chairperson Mills ABSENT: None VACANCY: One STAFF PRESENT: Finance Director Romero, Financial Services Analyst Hallick, Management Assistant Delgado, Design and Development Director Castro, and Community Resources Director Escobedo 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 Chairperson Mills requested a verbal update from staff on the Federal Emergency Management Agency contract services with Vanir. The Commission concurred. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS - None CONSENT CALENDAR ITEMS 1. APPROVE SPECIAL MEETING MINUTES DATED AUGUST 5, 2020 2. RECEIVE AND FILE FOURTH QUARTER 2019/20 TREASURY REPORTS FOR APRIL, MAY, JUNE 2020 CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES 2 SEPTEMBER 30, 2020 SPECIAL MEETING Motion – A motion was made and seconded by Commissioners Rosen/Batavick to approve the Consent Calendar, as submitted. Motion passed: ayes 6, noes 0, vacancy 1. BUSINESS SESSION 1. APPROVE STAFF RECOMMENDATION FOR ISSUANCE AND SALE OF SUBORDINATE TAX ALLOCATION REFUNDING BONDS Finance Director Romero presented the staff report, which is on file in the Finance Department. Finance Director Romero provided the Commission with an overview of the process for bond refinancing, anticipated savings and tax incentives, estimated cost of issuance, and the proposed timeline for refinancing. Suzanne Harrell, Managing Director, from Harrell and Company the financial and municipal advisor for the proposed bond refinance, explained the current market demand for municipal bonds and costs associated with bond sales. Motion – A motion was made and seconded by Commissioners Hunter/Hoffner to approve staff recommendation for issuance and sale of subordinate tax allocation refunding bonds. Motion passed: ayes 6, noes 0, vacancy 1. 2. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO AUDIT AND FORMULATE THE ANNUAL MEASURE G SALES TAX OVERSIGHT COMPLIANCE REPORT FOR FISCAL YEAR 2019/20 Finance Director Romero presented the staff report, which is on file in the Finance Department. Finance Director Romero explained the scope and purview of the report and the list of Commissioners who assisted with formulating this report in the past. Commissioners Batavick and Rosen expressed their willingness to audit and formulate the annual Measure G sales tax oversight compliance report for fiscal year 2019/20. Motion – A motion was made and seconded by Commissioners Hoffner/Hunter to appoint Commissioners Batavick and Rosen to audit and formulate the annual Measure G sales tax oversight compliance report for fiscal year 2019/20. Motion passed: ayes 6, noes 0, vacancy 1. 3. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO SERVE ON THE REVIEW AND SELECTION COMMITTEE FOR REQUEST FOR PROPOSALS (RFP) FOR ACTUARIAL CONSULTING AND TECHNOLOGY SERVICES Finance Director Romero presented the staff report, which is on file in the Finance Department. Finance Director Romero provided the Commission with an overview of the RFP’s scope and purpose; said it was posted on the City’s website on September 25, 2020; and outlined the anticipated proposed timeline for proposals review and selection. FINANCIAL ADVISORY COMMISSION MINUTES 3 SEPTEMBER 30, 2020 SPECIAL MEETING Commissioners Hunter and Twohey expressed their willingness to serve on the review and selection committee for the RFP for Actuarial Consulting and Technology Services. Motion – A motion was made and seconded by Commissioners Batavick/Hoffner to appoint Commissioners Hunter and Twohey to serve on the review and selection committee for the RFP for Actuarial Consulting and Technology Services. Motion passed: ayes 6, noes 0, vacancy 1. 4. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO REVIEW THE 2004 INTERFUND LIBRARY DEVELOPMENT IMPACT FEE FUND LOAN Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. Commissioners Hoffner and Mills expressed their willingness to review the 2004 interfund Library Development Impact Fee Fund loan. Motion – A motion was made and seconded by Commissioners Twohey/Rosen to appoint Commissioners Hoffner and Mills to review the 2004 interfund Library Development Impact Fee Fund loan. Motion passed: ayes 6, noes 0, vacancy 1. 5. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO PARTICIPATE IN A FUTURE SHORT-TERM VACATION RENTAL (STVR) SUBCOMMITTEE Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission suggested appointing three Commissioners to the STVR subcommittee. Commissioners Hoffner, Hunter, and Mills expressed their willingness to participate in a future STVR subcommittee. Motion – A motion was made and seconded by Commissioners Rosen/Batavick to appoint Commissioners Hoffner, Hunter, and Mills to participate in a future STVR subcommittee. Motion passed: ayes 6, noes 0, vacancy 1. STUDY SESSION – None DEPARTMENTAL REPORTS 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Finance Director Romero presented the staff report, which is on file in the Finance Department. Finance Director Romero announced effective September 14, 2020, that the City recruited Daniele Batuta as an Account Technician and she will be primarily responsible for accounts receivables in the Finance Department; and thanked the Commissioners for their willingness to continue to serve on the Commission and participate in the variety of ad- hoc committees. FINANCIAL ADVISORY COMMISSION MINUTES 4 SEPTEMBER 30, 2020 SPECIAL MEETING The Commission and staff discussed what is expected to be reviewed by the Ad-Hoc Committee for the City’s 457 retirement plan; required Coronavirus Aid, Relief, and Economic Security (CARES) Act reporting dates; Federal Emergency Management Agency (FEMA) requirements and new guidelines; and the extent of services provided by Vanir Construction Management, Inc., the City’s FEMA services consultant, for FEMA and CARES Act management and reporting. 2. FIRST QUARTER 2020 (JANUARY-MARCH) SALES TAX UPDATE FOR THE CITY OF LA QUINTA Financial Services Analyst presented the staff report, which is on file in the Finance Department. General discussion followed regarding the collection of Measure G sales tax. 3. LA QUINTA COVID-19 SMALL BUSINESS EMERGENCY ECONOMIC RELIEF PROGRAM (Program) – verbal update Staff said a total of $807,867 has been disbursed as of September 24, 2020 and that a total of 83 individual businesses have been assisted by the program. 4. FISCAL YEAR 2019/20 PRELIMINARY YEAR-END BUDGET REPORT – verbal update Finance Director Romero said that the City is still preparing items for 2019/20 fiscal year end audit, which are due on Friday, October 2, 2020 and provided an update to the Commission on the status for the year-end budget report. 5. VACANT FINANCIAL ADVISORY COMMISSION APPOINTMENT – verbal update Finance Director Romero said that staff is proposing to do a recruitment for the vacant Commissioner position, with an ending term of June 30, 2023, and anticipates Council will conduct interviews at the October 20, 2020 regular meeting. COMMISSIONERS’ ITEMS 1. HIGHWAY 111 CORRIDOR PROJECT (Project)– verbal update Staff provided the Commission with an update on the RFP for the project. Staff noted that on September 15, 2020, Council approved an agreement for contract services with GHD Inc to provide form-based code and planning and engineering services for the project and explained the scope of work and terms of the agreement. The Commission and staff discussed the involvement of property owners for the businesses along Highway 111 during the project plan and future stages, and the analysis for the projected revenue and benefits of the project. 2. SUBCOMMITTEE REVIEW OF POLICE SERVICES – verbal update Community Resources Director Escobedo thanked Commissioners Batavick and Rosen for their involvement in the subcommittee conducting the review and evaluation of police service levels; said the subcommittee reviewed cost factors, crime data, police service FINANCIAL ADVISORY COMMISSION MINUTES 5 SEPTEMBER 30, 2020 SPECIAL MEETING efficiency, the various annual studies for police services prepared by Matrix Consulting Group, and the priority of community safety. 3. PUBLIC SAFETY CAMERA SYSTEM (System) – verbal update Staff said Council received an updated on this project at the September 15, 2020 meeting via a departmental report and another update would be presented at the October 6, 2020 meeting to consider proceeding with advertisement and publication of bid on the installation and maintenance for the System. Staff also noted the following items have been completed: • Staff released an online community survey via Survey Monkey, • Provided 4 updates to all City Commissions, • Held 4 community meetings and 2 focus groups, • Community research was completed by Probolsky Research, • Created policies to govern the system, • Visited and toured 2 cities with public safety camera systems, • Distributed Request for Qualifications (RFQ) for vendors, • Conducted a 90-day pilot program of a camera system at street intersections, • Hosted 22 PSCS viewing parties at City Hall of top three vendors (90-day pilot program), and • Retained a firm to design a comprehensive city-wide camera system. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Twohey/Rosen to adjourn this meeting at 5:32 p.m. Motion passed: ayes 6, noes 0, vacancy 1. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING : November 4, 2020 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JUNE 30, 2020 RECOMMENDATION Receive and file revenue and expenditure report dated June 30, 2020. EXECUTIVE SUMMARY • The report summarizes the City’s period and year-to-date (YTD) revenues and expenditures for June 2020 (Attachment 1). • These reports are also reviewed by the City Council. FISCAL IMPACT - None BACKGROUND/ANALYSIS Below is a summary of the column headers used on the Revenue and Expenditure Summary Reports: Original Total Budget – represents revenue and expenditure budgets the Council adopted in June 2019 for fiscal year 2019/20. Current Total Budget – represents original adopted budgets plus any carryovers (typically associated with long-term Capital Improvement Projects (CIP) from the prior fiscal year) and any Council approved budget amendments from throughout the year. Period Activity – represents actual revenues received and expenditures outlaid in the reporting month. Fiscal Activity – represents actual revenues received and expenditures outlaid YTD. Variance Favorable/(Unfavorable) - represents the dollar difference between YTD collections/expenditures and the current budgeted amount. Percent Used – represents the percentage activity as compared to budget YTD. CONSENT CALENDAR ITEM NO. 2 The revenue report includes revenues and transfers into funds from other funds (income items). Revenues are not received uniformly throughout the year, resulting in peaks and valleys. For example, large property tax payments are usually received in De cember and May. Similarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. Any timing imbalance of revenue receipts versus expenditures is funded from the City’s cash flow reserve. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are more likely to be consistent from month to month. However, large debt service payments or CIP expenditures can cause swings. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Romero, Finance Director Attachment: 1. Revenue and Expenditure Report for June 30, 2020 MTD YTD YTD Percent of Budget General Fund 17,682,855$ 58,089,234$ 109.86% All Funds 44,960,710$ 124,328,814$ 72.24% MTD YTD YTD Percent of Budget General Fund 12,863,574$ 56,103,152$ 77.37% Payroll - General Fund 1,090,676$ 13,434,550$ 94.74% All Funds 13,387,214$ 109,956,951$ 56.80% June Revenues June Expenditures General Fund Non-General Fund Property Tax 3,453,547$ County Government Revenue for Debt Service 13,304,206$ 3,035,784$ Transfers in - Capital Improvement (CIP)(1)5,488,211$ Measure G Sales Tax 2,382,535$ Active Transportation Grant - Complete Streets 3,247,213$ Sales Tax 2,308,074$ County Government Revenue -Library/Museum 1,962,150$ Property Tax in Lieu of Vehicle License Fees (VLF)2,128,549$ Lighting and Landscape District Assessments 427,283$ General Fund Non-General Fund Sheriff Contract (April, May, June)4,949,924$ Capital Improvement Program (CIP)- Construction(2)2,541,828$ Fire Service Costs 2,842,982$ Transfers Out -Parks & Rec DIF to CIP 1,440,287$ Transfers Out to CIP 1,934,826$ Transfers Out -Measure A to CIP 1,259,045$ Loss on Disposal - reduce land held for resale 327,338$ Contributions to Other Agencies(3)625,558$ Contract Legal Services 131,412$ Depreciation Expense 544,770$ (3) Payment to City of Indio (lead agency) for Madison Street widening from Avenue 50 to 52 (2) CIP Construction: Expenses associated with Highway Safety Improvement Program (HSIP) intersection improvement, Eisenhower drainage, Village Complete Streets, Cove restroom, and SilverRock Event Site projects. Top Five Revenue/Income Sources for June Top Five Expenditures/Outlays for June (1) Transfers in to the Capital Improvement Fund are from General Fund, Quimby, Parks & Rec Developer Impact Fees (DIF) and transportation sources including DIF and Measure A. For Fiscal: 2019/20 Period Ending: 06/30/2020 10/9/2020 Page 1 of 2 Revenue Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 58,089,23417,682,85557,847,200 52,874,869 5,214,365 109.86 % 201 - GAS TAX FUND 2,191,125227,0332,360,900 2,107,400 83,725 103.97 % 202 - LIBRARY & MUSEUM FUND 3,132,4552,139,6172,752,000 2,752,000 380,455 113.82 % 203 - PUBLIC SAFETY FUND (MEASURE G)45,45929,1403,200 3,200 42,259 1,420.61 % 210 - FEDERAL ASSISTANCE FUND 14,938339123,200 193,840 -178,902 7.71 % 212 - SLESA (COPS) FUND 162,94637,788100,500 100,500 62,446 162.14 % 215 - LIGHTING & LANDSCAPING FUND 1,975,779443,0932,274,200 1,974,200 1,579 100.08 % 220 - QUIMBY FUND 69,68932,789140,000 140,000 -70,311 49.78 % 221 - AB 939 - CALRECYCLE FUND 97,13946,75670,000 70,000 27,139 138.77 % 223 - MEASURE A FUND 1,578,319439,2011,311,300 1,311,300 267,019 120.36 % 224 - TUMF FUND 4,7345,14000 4,734 0.00 % 225 - INFRASTRUCTURE FUND 715458300300 415 238.23 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)26416912,000 12,000 -11,736 2.20 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)03,19400 0 0.00 % 230 - CASp FUND, AB 1379 20,7641,95421,200 21,200 -436 97.94 % 231 - SUCCESSOR AGCY PA 1 RORF 19,916,90512,458,84520,539,264 20,539,264 -622,359 96.97 % 235 - SO COAST AIR QUALITY FUND 41,53213,98953,500 53,500 -11,968 77.63 % 237 - SUCCESSOR AGCY PA 1 ADMIN 20,5357,5111,500 13,505 7,030 152.06 % 241 - HOUSING AUTHORITY 1,474,316-132,182448,000 1,688,256 -213,940 87.33 % 243 - RDA LOW-MOD HOUSING FUND 269,013237,99422,000 40,000 229,013 672.53 % 247 - ECONOMIC DEVELOPMENT FUND 1,643,488101,50001,500,000 143,488 109.57 % 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014)4,326-2,80200 4,326 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)403,942117,794270,000 350,000 53,942 115.41 % 250 - TRANSPORTATION DIF FUND 801,997327,968395,000 395,000 406,997 203.04 % 251 - PARKS & REC DIF FUND 472,951201,223306,000 306,000 166,951 154.56 % 252 - CIVIC CENTER DIF FUND 222,94298,180110,000 110,000 112,942 202.67 % 253 - LIBRARY DEVELOPMENT DIF 75,33633,02445,000 45,000 30,336 167.41 % 254 - COMMUNITY CENTER DIF 35,27217,07122,000 22,000 13,272 160.33 % 255 - STREET FACILITY DIF FUND 30,25112,13923,000 17,000 13,251 177.95 % 256 - PARK FACILITY DIF FUND 8,9153,9917,000 7,000 1,915 127.35 % 257 - FIRE PROTECTION DIF 102,37345,06655,000 55,000 47,373 186.13 % 270 - ART IN PUBLIC PLACES FUND 197,45721,926160,500 160,500 36,957 123.03 % 275 - LQ PUBLIC SAFETY OFFICER 3,7781,1462,600 2,600 1,178 145.32 % 299 - INTEREST ALLOCATION FUND 0-414,03200 0 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 1,10001,000 1,000 100 110.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 19,384,8708,707,08321,222,000 73,315,692 -53,930,822 26.44 % 405 - SA PA 1 CAPITAL IMPRV FUND 235,393149,066100,000 100,000 135,393 235.39 % 501 - FACILITY & FLEET REPLACEMENT 994,911297,762900,200 900,200 94,711 110.52 % 502 - INFORMATION TECHNOLOGY 1,531,991373,1731,394,400 1,494,400 37,591 102.52 % 503 - PARK EQUIP & FACILITY FUND 803,509415,060719,000 382,000 421,509 210.34 % 504 - INSURANCE FUND 937,050233,904929,500 929,500 7,550 100.81 % 601 - SILVERROCK RESORT 3,381,948149,0394,105,600 4,405,600 -1,023,652 76.76 % 602 - SILVERROCK GOLF RESERVE 9,3552,1175,500 5,500 3,855 170.09 % 735 - 97-1 AGENCY REDEMPTION FUND 97,69797,28600 97,697 0.00 % 760 - SUPPLEMENTAL PENSION PLAN 8,7782,4497,000 7,000 1,778 125.40 % 761 - CERBT OPEB TRUST 88,397171,55740,000 40,000 48,397 220.99 % 762 - PARS PENSION TRUST 3,744,924122,336200,000 3,660,000 84,924 102.32 % Report Total:44,960,710 124,328,814119,100,564 172,106,326 -47,777,511 72.24 % ATTACHMENT 1 Accounts are subject to adjusting entries and audit. The City's Comprehensive Annual Financial Report (CAFR), published annually in December, is the best resource for all final audited numbers. For Fiscal: 2019/20 Period Ending: 06/30/2020 10/9/2020 Page 2 of 2 Expenditure Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 56,103,15212,863,57455,638,500 72,513,757 16,410,605 77.37 % 201 - GAS TAX FUND 1,937,156281,1922,360,900 2,478,134 540,979 78.17 % 202 - LIBRARY & MUSEUM FUND 1,885,556495,5182,419,100 2,541,100 655,544 74.20 % 210 - FEDERAL ASSISTANCE FUND 20,20918,105123,200 197,172 176,963 10.25 % 212 - SLESA (COPS) FUND 94,8256,020100,000 100,000 5,175 94.82 % 215 - LIGHTING & LANDSCAPING FUND 1,865,409182,8342,274,200 2,165,200 299,791 86.15 % 220 - QUIMBY FUND 1,933,252228,546263,000 4,714,876 2,781,625 41.00 % 221 - AB 939 - CALRECYCLE FUND 133,18055,29950,000 180,000 46,820 73.99 % 223 - MEASURE A FUND 1,489,6721,259,0451,298,300 2,996,248 1,506,576 49.72 % 225 - INFRASTRUCTURE FUND 1,4100024,118 22,708 5.85 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)0012,000 12,000 12,000 0.00 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)3,1943,19400 -3,194 0.00 % 230 - CASp FUND, AB 1379 3,1289254,600 5,600 2,472 55.85 % 231 - SUCCESSOR AGCY PA 1 RORF 8,455,836-8,917,1058,394,963 8,405,468 -50,368 100.60 % 235 - SO COAST AIR QUALITY FUND 121,15610,21391,500 111,500 -9,656 108.66 % 237 - SUCCESSOR AGCY PA 1 ADMIN 14,2551,50012,005 13,505 -750 105.55 % 241 - HOUSING AUTHORITY 615,05171,426609,300 990,957 375,906 62.07 % 243 - RDA LOW-MOD HOUSING FUND 350,779167,446250,000 351,000 221 99.94 % 247 - ECONOMIC DEVELOPMENT FUND 585,07783,24001,500,000 914,923 39.01 % 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014)388,632386,6920390,500 1,868 99.52 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)0020,000 60,000 60,000 0.00 % 250 - TRANSPORTATION DIF FUND 943,219539,402483,700 1,608,730 665,511 58.63 % 251 - PARKS & REC DIF FUND 1,441,6971,440,28702,401,500 959,803 60.03 % 252 - CIVIC CENTER DIF FUND 1,4110130,000 1,500 89 94.08 % 253 - LIBRARY DEVELOPMENT DIF 30,2785,53132,000 33,500 3,222 90.38 % 254 - COMMUNITY CENTER DIF 1,41000103,139 101,729 1.37 % 255 - STREET FACILITY DIF FUND 1,410030,000 1,500 90 94.00 % 256 - PARK FACILITY DIF FUND 1,41006,000 1,500 90 94.00 % 257 - FIRE PROTECTION DIF 1,41007,500 1,500 90 94.00 % 270 - ART IN PUBLIC PLACES FUND 41,67913,022160,000 760,000 718,321 5.48 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 1,10001,000 1,000 -100 110.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 22,669,7322,358,98421,222,000 73,568,427 50,898,695 30.81 % 405 - SA PA 1 CAPITAL IMPRV FUND 273,58459,53305,812,738 5,539,155 4.71 % 501 - FACILITY & FLEET REPLACEMENT 865,69297,803898,200 1,539,037 673,345 56.25 % 502 - INFORMATION TECHNOLOGY 1,574,901236,3871,390,400 1,980,600 405,699 79.52 % 503 - PARK EQUIP & FACILITY FUND 914,709619,225700,000 975,036 60,327 93.81 % 504 - INSURANCE FUND 896,63916,671870,500 870,500 -26,139 103.00 % 601 - SILVERROCK RESORT 4,148,191699,7044,185,700 4,153,200 5,009 99.88 % 735 - 97-1 AGENCY REDEMPTION FUND 98,46598,46500 -98,465 0.00 % 760 - SUPPLEMENTAL PENSION PLAN 12,833012,850 12,850 17 99.87 % 761 - CERBT OPEB TRUST 1,067000 -1,067 0.00 % 762 - PARS PENSION TRUST 35,1864,53600 -35,186 0.00 % Report Total:13,387,214 109,956,951104,051,418 193,577,393 83,620,443 56.80 % Accounts are subject to adjusting entries and audit. The City's Comprehensive Annual Financial Report (CAFR), published annually in December, is the best resource for all final audited numbers. Fund # Name Notes 101 General Fund The primary fund of the City used to account for all revenue and expenditures of the City; a broad range of municipal activities are provided through this fund. 201 Gas Tax Fund Gasoline sales tax allocations received from the State which are restricted to street-related expenditures. 202 Library and Museum Fund Revenues from property taxes and related expenditures for library and museum services. 203 Public Safety Fund General Fund Measure G sales tax revenue set aside for public safety expenditures. 210 Federal Assistance Fund Community Development Block Grant (CDBG) received from the federal government and the expenditures of those resources. 212 SLESF (COPS) Fund Supplemental Law Enforcement Services Funds (SLESF) received from the State for law enforcement activities. Also known as Citizen's Option for Public Safety (COPS). 215 Lighting & Landscaping Fund Special assessments levied on real property for city-wide lighting and landscape maintenance/improvements and the expenditures of those resources. 217 Development Agreement Revenue and Expenditures related to development agreement for Village. 220 Quimby Fund Developer fees received under the provisions of the Quimby Act for park development and improvements. 221 AB939 Fund/Cal Recycle Franchise fees collected from the city waste hauler that are used to reduce waste sent to landfills through recycling efforts. Assembly Bill (AB) 939. 223 Measure A Fund County sales tax allocations which are restricted to street-related expenditures. 224 TUMF Fund Developer-paid Transportation Uniform Mitigation Fees (TUMF) utilized for traffic projects in Riverside County. 225 Infrastructure Fund Developer fees for the acquisition, construction or improvement of the City’s infrastructure as defined by Resolution 226 Emergency Mgmt. Performance Grant (EMPG) Federal Emergency Management Agency (FEMA) grant for emergency preparedness. 227 State Homeland Security Programs (SHSP) Federal Emergency Management Agency (FEMA) grant for emergency preparedness. 230 CASP Fund, AB1379 / SB1186 Certified Access Specialist (CASp) program fees for ADA Accessibility Improvements; derived from Business License renewals. Assembly Bill (AB) 1379 and Senate Bill (SB) 1186. 231 Successor Agency PA 1 RORF Fund Successor Agency (SA) Project Area (PA) 1 Redevelopment Obligation Retirement Fund (RORF) for Redevelopment Property Tax Trust Fund (RPTTF) taxes received for debt service payments on recognized obligations of the former Redevelopment Agency (RDA). 235 SO Coast Air Quality Fund (AB2766, PM10) Contributions from the South Coast Air Quality Management District. Uses are limited to the reduction and control of airborne pollutants. Assembly Bill (AB) 2766. 237 Successor Agency PA 1 Admin Fund Successor Agency (SA) Project Area (PA) 1 for administration of the Recognized Obligation Payment Schedule (ROPS) associated with the former Redevelopment Agency (RDA). 241 Housing Authority Activities of the Housing Authority which is to promote and provide quality affordable housing. 243 RDA Low-Moderate Housing Fund Activities of the Housing Authority which is to promote and provide quality affordable housing. Accounts for RDA loan repayments (20% for Housing) and housing programs,. 244 Housing Grants Activites related Local Early Action Planning (LEAP) and SB2 grants for housing planning and development. 247 Economic Development Fund Proceeds from sale of City-owned land; transferred from General Fund for future economic development. 248 SA 2004 LO/MOD Bond Fund Successor Agency (SA) low/moderate housing fund; 2004 bonds refinanced in 2014; for Washington Street Apartment rehabilitation only. 249 SA 2011 Low/Mod Bond Fund Successor Agency (SA) low/moderate housing fund; 2011 bonds refinanced in 2016. 250 Transportation DIF Fund Developer impact fees collected for specific public improvements - transportation related. 251 Parks & Rec. DIF Fund Developer impact fees collected for specific public improvements - parks and recreation. 252 Civic Center DIF Fund Developer impact fees collected for specific public improvements - Civic Center. 253 Library Development DIF Fund Developer impact fees collected for specific public improvements - library. 254 Community Center DIF Fund Developer impact fees collected for specific public improvements - community center. 255 Street Facility DIF Fund Developer impact fees collected for specific public improvements - streets. 256 Park Facility DIF Fund Developer impact fees collected for specific public improvements - parks. 257 Fire Protection DIF Fund Developer impact fees collected for specific public improvements - fire protection. 270 Art In Public Places Fund Developer fees collected in lieu of art placement; utilized for acquisition, installation and maintenance of public artworks. 275 LQ Public Safety Officer Fund Annual transfer in from General Fund; distributed to public safety officers disabled or killed in the line of duty. 299 Interest Allocation Fund Interest earned on investments. 310 LQ Finance Authority Debt Service Fund Accounted for the debt service the Financing Authority’s outstanding debt and any related reporting requirements. This bond was fully paid in October 2018. 401 Capital Improvement Program Fund Planning, design, and construction of various capital projects throughout the City. 405 SA PA 1 Capital Improvement Fund Successor Agency (SA) Project Area (PA) 1 bond proceeds restricted by the bond indenture covenants. Used for SilverRock infrastructure improvements. 501 Equipment Replacement Fund Internal Service Fund for vehicles, heavy equipment, and related facilities. 502 Information Technology Fund Internal Service Fund for computer hardware and software and phone systems. 503 Park Equipment & Facility Fund Internal Service Fund for park equipment and facilities. 504 Insurance Fund Internal Service Fund for city-wide insurance coverages. 601 SilverRock Resort Fund Enterprise Fund for activities of the city-owned golf course. 602 SilverRock Golf Reserve Fund Enterprise Fund for golf course reserves for capital improvements. 735 97-1 Agency Redemption Fund To account for sewer improvement assessments. 760 Supplemental Pension Plan (PARS Account) Supplemental pension savings plan for excess retiree benefits to general employees of the City. 761 Other Post Benefit Obligation Trust (OPEB) For retiree medical benefits and unfunded liabilities. 762 Pension Trust Benefit (PARS Account) For all pension-related benefits and unfunded liabilities. Fund Descriptions City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 4, 2020 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JULY 31, 2020 RECOMMENDATION Receive and file revenue and expenditure report dated July 31, 2020. EXECUTIVE SUMMARY •The report summarizes the City’s year-to-date (YTD) revenues and period expenditures for July 2020 (Attachment 1). •These reports are also reviewed by the City Council. FISCAL IMPACT – None BACKGROUND/ANALYSIS Below is a summary of the column headers used on the Revenue and Expenditure Summary Reports: Original Total Budget – represents revenue and expenditure budgets the Council adopted in June 2020 for fiscal year 2020/21. Current Total Budget – represents original adopted budgets plus any Council approved budget amendments from throughout the year. The 2019/20 operating and Capital Improvement Project carryovers to 2020/21 will be processed after the year-end audit is completed. Period Activity – represents actual revenues received and expenditures outlaid in the reporting month. Fiscal Activity – represents actual revenues received and expenditures outlaid YTD. Variance Favorable/(Unfavorable) - represents the dollar difference between YTD collections/expenditures and the current budgeted amount. Percent Used – represents the percentage activity as compared to budget YTD. CONSENT CALENDAR ITEM NO. 3 87 The revenue report includes revenues and transfers into funds from other funds (income items). Revenues are not received uniformly throughout the year, resulting in peaks and valleys. For example, large property tax payments are usually received in December and May. Similarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. Any timing imbalance of revenue receipts versus expenditures is funded from the City’s cash flow reserve. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are more likely to be consistent from month to month. However, large debt service payments or CIP expenditures can cause swings. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Romero, Finance Director Attachment 1: Revenue and Expenditure Report for July 31, 2020 MTD YTD Total Annual Budget YTD Percent of Budget General Fund (GF)334,700$ 334,700$ 50,726,100$ 0.66% All Funds 1,911,044$ 1,911,044$ 108,928,069$ 1.75% MTD YTD Total Annual Budget YTD Percent of Budget General Fund 1,587,752$ 1,587,752$ 48,233,500$ 3.29% Payroll (GF)1,356,681$ 1,356,681$ 10,043,600$ 13.51% All Funds 4,343,059$ 4,343,059$ 100,727,523$ 4.31% July Revenues July Expenditures General Fund Non-General Fund S tate G overnment (C AR E S distribution)83,672$ Sale of Other Assets (Housing Authority)(3)1,061,456$ Business Licenses 40,217$ Non-allocated Interest (Pension Trust)236,162$ Building Plan Check Fees 32,942$ SilverRock Greens Fees 126,406$ STVR Registration Fee 24,000$ Gas Tax 82,235$ Misc. Permits 17,741$ Housing Authority Rent Revenue 24,890$ General Fund Non-General Fund Membership Dues(1)53,900$ Land Acquisition(3)1,063,991$ Sheriff Cal-ID 42,098$ Land Acquisition(4)618,000$ Parks Landscape Maintenance 35,765$ Software Licenses(5)216,330$ Marketing and Tourism Promotions 29,955$ Liability Insurance Premium 201,022$ Professional Services (2)8,240$ Earthquake Insurance Premium 102,390$ (4)Deposit to State Condemnation Fund in relation to Dune Palms mobile home park. (5)Annual subscription fees for Tyler (Finance Dept.), TrakIt (Hub/permits) and Granicus (City website). Top Five Revenue/Income Sources for July Top Five Expenditures/Outlays for July (1)Coachella Valley Association of Governments (CVAG). (2)MuniRevs contract for Short Term Vacation Rental Program (STVR). (3)Part of the Capital Improvement Program (CIP), land purchased from Housing Authority for Xpark and retention basins on Dune Palms. Income for Housing Authority Fund from sale of land and expense for CIP projects. 88 For Fiscal: 2020/21 Period Ending: 07/31/2020 9/30/2020 Page 1 of 2 Revenue Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 334,700334,70050,726,100 50,726,100 -50,391,400 0.66 % 201 - GAS TAX FUND 82,23582,2351,778,400 1,778,400 -1,696,165 4.62 % 202 - LIBRARY & MUSEUM FUND 002,808,500 2,808,500 -2,808,500 0.00 % 203 - PUBLIC SAFETY FUND (MEASURE G)0010,000 10,000 -10,000 0.00 % 210 - FEDERAL ASSISTANCE FUND 00141,900 141,900 -141,900 0.00 % 212 - SLESA (COPS) FUND 00101,000 101,000 -101,000 0.00 % 215 - LIGHTING & LANDSCAPING FUND 001,877,000 1,877,000 -1,877,000 0.00 % 220 - QUIMBY FUND 0080,000 80,000 -80,000 0.00 % 221 - AB 939 - CALRECYCLE FUND 0076,000 76,000 -76,000 0.00 % 223 - MEASURE A FUND 001,319,000 1,319,000 -1,319,000 0.00 % 225 - INFRASTRUCTURE FUND 00200200 -200 0.00 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)0012,100 12,100 -12,100 0.00 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)005,000 5,000 -5,000 0.00 % 230 - CASp FUND, AB 1379 1,5321,53218,200 18,200 -16,668 8.42 % 231 - SUCCESSOR AGCY PA 1 RORF 0020,539,264 20,539,264 -20,539,264 0.00 % 235 - SO COAST AIR QUALITY FUND 0053,000 53,000 -53,000 0.00 % 237 - SUCCESSOR AGCY PA 1 ADMIN 0013,505 13,505 -13,505 0.00 % 241 - HOUSING AUTHORITY 1,086,3461,086,346513,300 513,300 573,046 211.64 % 243 - RDA LOW-MOD HOUSING FUND 0035,000 35,000 -35,000 0.00 % 247 - ECONOMIC DEVELOPMENT FUND 0040,000 40,000 -40,000 0.00 % 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014)1,8201,82000 1,820 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)00200,000 200,000 -200,000 0.00 % 250 - TRANSPORTATION DIF FUND 5,6845,684380,000 380,000 -374,316 1.50 % 251 - PARKS & REC DIF FUND 4,0964,096304,000 304,000 -299,904 1.35 % 252 - CIVIC CENTER DIF FUND 1,8841,884110,000 110,000 -108,116 1.71 % 253 - LIBRARY DEVELOPMENT DIF 68868845,000 45,000 -44,312 1.53 % 254 - COMMUNITY CENTER DIF 25825816,500 16,500 -16,242 1.56 % 255 - STREET FACILITY DIF FUND 23223217,000 17,000 -16,768 1.36 % 256 - PARK FACILITY DIF FUND 80807,100 7,100 -7,020 1.13 % 257 - FIRE PROTECTION DIF 86686655,500 55,500 -54,634 1.56 % 270 - ART IN PUBLIC PLACES FUND 2,7552,755111,000 111,000 -108,245 2.48 % 275 - LQ PUBLIC SAFETY OFFICER 002,600 2,600 -2,600 0.00 % 299 - INTEREST ALLOCATION FUND 9,8989,89800 9,898 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 -1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 0019,058,300 19,380,200 -19,380,200 0.00 % 405 - SA PA 1 CAPITAL IMPRV FUND 00100,000 100,000 -100,000 0.00 % 501 - FACILITY & FLEET REPLACEMENT 00902,500 902,500 -902,500 0.00 % 502 - INFORMATION TECHNOLOGY 1,7701,7701,721,500 1,721,500 -1,719,730 0.10 % 503 - PARK EQUIP & FACILITY FUND 00245,000 245,000 -245,000 0.00 % 504 - INSURANCE FUND 00928,500 928,500 -928,500 0.00 % 601 - SILVERROCK RESORT 140,039140,0393,882,100 3,882,100 -3,742,061 3.61 % 602 - SILVERROCK GOLF RESERVE 004,500 4,500 -4,500 0.00 % 760 - SUPPLEMENTAL PENSION PLAN 006,500 6,500 -6,500 0.00 % 761 - CERBT OPEB TRUST 0060,000 60,000 -60,000 0.00 % 762 - PARS PENSION TRUST 236,162236,162300,000 300,000 -63,838 78.72 % Report Total:1,911,044 1,911,044108,606,169 108,928,069 -107,017,025 1.75 % Accounts are subject to adjusting entries and audit. The City's Comprehensive Annual Financial Report (CAFR), published annually in December, is the best resource for all final audited numbers. ATTACHMENT 1 Fund 241 – A first quarter budget adjustment will adjust the revenue budget for FY 2020/21. 89 For Fiscal: 2020/21 Period Ending: 07/31/2020 9/30/2020 Page 2 of 2 Expenditure Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 1,587,7521,587,75247,911,600 48,233,500 46,645,748 3.29 % 201 - GAS TAX FUND 26,94126,9411,775,300 1,775,300 1,748,359 1.52 % 202 - LIBRARY & MUSEUM FUND 11,01111,0111,715,100 1,715,100 1,704,089 0.64 % 203 - PUBLIC SAFETY FUND (MEASURE G)001,000,000 1,000,000 1,000,000 0.00 % 210 - FEDERAL ASSISTANCE FUND 00141,900 141,900 141,900 0.00 % 212 - SLESA (COPS) FUND 00100,000 100,000 100,000 0.00 % 215 - LIGHTING & LANDSCAPING FUND 82,68182,6811,876,600 1,876,600 1,793,919 4.41 % 221 - AB 939 - CALRECYCLE FUND 200200100,000 100,000 99,800 0.20 % 223 - MEASURE A FUND 001,263,900 1,263,900 1,263,900 0.00 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)9,7509,75012,000 12,000 2,250 81.25 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)005,000 5,000 5,000 0.00 % 230 - CASp FUND, AB 1379 004,400 4,400 4,400 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 008,405,468 8,405,468 8,405,468 0.00 % 235 - SO COAST AIR QUALITY FUND 0042,200 42,200 42,200 0.00 % 237 - SUCCESSOR AGCY PA 1 ADMIN 0013,505 13,505 13,505 0.00 % 241 - HOUSING AUTHORITY 28,14328,143822,300 822,300 794,157 3.42 % 243 - RDA LOW-MOD HOUSING FUND 00250,000 250,000 250,000 0.00 % 247 - ECONOMIC DEVELOPMENT FUND 74,95874,95810,000 10,000 -64,958 749.58 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)618,000618,0006,185,000 6,185,000 5,567,000 9.99 % 250 - TRANSPORTATION DIF FUND 001,293,000 1,293,000 1,293,000 0.00 % 253 - LIBRARY DEVELOPMENT DIF 0030,000 30,000 30,000 0.00 % 270 - ART IN PUBLIC PLACES FUND 00110,000 110,000 110,000 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 1,069,3021,069,30219,058,300 19,380,200 18,310,898 5.52 % 501 - FACILITY & FLEET REPLACEMENT 17,39517,395902,500 902,500 885,105 1.93 % 502 - INFORMATION TECHNOLOGY 277,784277,7841,684,200 1,684,200 1,406,416 16.49 % 503 - PARK EQUIP & FACILITY FUND 11595,000 595,000 594,999 0.00 % 504 - INSURANCE FUND 384,850384,850827,500 827,500 442,650 46.51 % 601 - SILVERROCK RESORT 136,872136,8723,881,500 3,881,500 3,744,628 3.53 % 760 - SUPPLEMENTAL PENSION PLAN 12,83312,83312,850 12,850 17 99.87 % 761 - CERBT OPEB TRUST 001,500 1,500 1,500 0.00 % 762 - PARS PENSION TRUST 4,5864,58652,000 52,000 47,414 8.82 % Report Total:4,343,059 4,343,059100,083,723 100,727,523 96,384,464 4.31 % Accounts are subject to adjusting entries and audit. The City's Comprehensive Annual Financial Report (CAFR), published annually in December, is the best resource for all final audited numbers. Fund 247 – A carryover budget adjustment from FY 2019/20 to FY 2020/21 will be processed after the FY 2019/20 audit for the Small Business Economic Relief Program. Fund 504 – Bi-annual insurance premiums are were paid in July for the City’s liability, earthquake, and worker’s compensation policies. Fund 760 – The annual contribution is paid in July. No further payments as required for FY 2020/21. 90 Fund #Fund Name Fund Notes 101 General Fund The primary fund of the City used to account for all general revenue and expenditures of the City; a broad range of municipal services are provided through this fund. 201 Gas Tax Fund Gasoline sales tax allocations received from the State which are restricted to street-related expenditures. 202 Library and Museum Fund Revenues from property taxes and related expenditures for library and museum services. 203 Public Safety Fund General Fund Measure G sales tax revenue set aside for public safety expenditures. 210 Federal Assistance Fund Community Development Block Grant (CDBG) received from the federal government and the expenditures of those resources. 212 SLESF (COPS) Fund Supplemental Law Enforcement Services Fund (SLESF)- received from the State for law enforcement activities. Also known as Citizen's Option for Public Safety (COPS). 215 Lighting & Landscaping Fund Special assessments levied on real property for city-wide lighting and landscape maintenance/improvements and the expenditures of those resources. 217 Development Agreement Fund Revenue and Expenditures related to development agreements for Village. 220 Quimby Fund Developer fees received under the provisions of the Quimby Act for park development and improvements. 221 AB939 Fund/Cal Recycle Franchise fees collected from the city waste hauler that are used to reduce waste sent to landfills through recycling efforts. Assembly Bill (AB) 939. 223 Measure A Fund County sales tax allocations which are restricted to street-related expenditures. 224 TUMF Fund Developer-paid Transportation Uniform Mitigation Fees (TUMF) utilized for traffic projects in Riverside County. 225 Infrastructure Fund Developer fees for the acquisition, construction or improvement of the City’s infrastructure as defined by Resolution. 226 Emergency Mgmt. Performance Grant (EMPG Federal Emergency Management Agency (FEMA) grant for emergency preparedness. 227 State Homeland Security Programs (SHSP)Federal Emergency Management Agency (FEMA) grant for emergency preparedness. 230 CASP Fund, AB1379 / SB1186 Certified Access Specialist (CASp) program fees for ADA Accessibility Improvements; derived from Business License renewals. Assembly Bill (AB) 1379 and Senate Bill (SB) 1186. 231 Successor Agency PA 1 RORF Fund Successor Agency (SA) Project Area (PA) 1 Redevelopment Obligation Retirement Fund (RORF) for Redevelopment Property Tax Trust Fund (RPTTF) taxes received for debt service payments on recognized obligations of the former Redevelopment Agency (RDA). 235 SO Coast Air Quality Fund (AB2766, PM10)Contributions from the South Coast Air Quality Management District. Uses are limited to the reduction and control of airborne pollutants. Assembly Bill (AB) 2766. 237 Successor Agency PA 1 Admin Fund Successor Agency (SA) Project Area (PA) 1 for administration of the Recognized Obligation Payment Schedule (ROPS) associated with the former Redevelopment Agency (RDA). 241 Housing Authority Activities of the Housing Authority which is to promote and provide quality affordable housing. 243 RDA Low-Moderate Housing Fund Activities of the Housing Authority which is to promote and provide quality affordable housing. Accounts for RDA loan repayments (20% for Housing) and housing programs,. 247 Economic Development Fund For proceeds from sale of City-owned land; transferred from General Fund for future economic development. 248 SA 2004 LO/MOD Bond Fund Successor Agency (SA) low/moderate housing fund. 2004 bonds refinanced in 2014; for Washington Street Apartment rehabilitation only. 249 SA 2011 Low/Mod Bond Fund Successor Agency (SA) low/moderate housing fund. 2011 bonds refinanced in 2016. 250 Transportation DIF Fund Developer impact fees collected for specific public improvements -transportation related. 251 Parks & Rec. DIF Fund Developer impact fees collected for specific public improvements-parks and recreation. 252 Civic Center DIF Fund Developer impact fees collected for specific public improvements -Civic Center. 253 Library Development DIF Fund Developer impact fees collected for specific public improvements -library. 254 Community Center DIF Fund Developer impact fees collected for specific public improvements -community center. 255 Street Facility DIF Fund Developer impact fees collected for specific public improvements -streets. 256 Park Facility DIF Fund Developer impact fees collected for specific public improvements -parks. 257 Fire Protection DIF Fund Developer impact fees collected for specific public improvements -fire protection. 270 Art In Public Places Fund Developer fees collected in lieu of art placement; utilized for acquisition, installation and maintenance of public artworks. 275 LQ Public Safety Officer Fund Annual transfer in from General Fund; distributed to public safety officers disabled or killed in the line of duty. 299 Interest Allocation Fund To account for interest earned on investments. 310 LQ Finance Authority Debt Service Fund Accounted for the debt service the Financing Authority’s outstanding debt and any related reporting requirements. This bond was fully paid in October 2018. 401 Capital Improvement Program Fund Planning, design, and construction of various capital projects throughout the City. 405 SA PA 1 Capital Improvement Fund Successor Agency (SA) Project Area (PA) 1 bond proceeds restricted by the bond indenture covenants. Used for SilverRock infrastructure improvements. 501 Equipment Replacement Fund Internal Service Fund for vehicles, heavy equipment, and related facilities. 502 Information Technology Fund Internal Service Fund for computer hardware and software and phone systems. 503 Park Equipment & Facility Fund Internal Service Fund for park equipment and facilities. 504 Insurance Fund Internal Service Fund for city-wide insurance coverages. 601 SilverRock Resort Fund Enterprise Fund for activities of the city-owned golf course. 602 SilverRock Golf Reserve Fund Enterprise Fund for golf course reserves for capital improvements. 735 97-1 Agency Redemption Fund To account for sewer improvement assessments. 760 Supplemental Pension Plan (PARS Account)Supplemental pension savings plan for excess retiree benefits to general employees of the City. 761 Other Post Benefit Obligation Trust (OPEB)For retiree medical benefits and unfunded liabilities. 762 Pension Trust Benefit (PARS Account)For pension-related benefits and unfunded liabilities. 91 City of La Quinta CONSENT CALENDAR ITEM NO. 4 FINANCIAL ADVISORY COMMISSION MEETING: November 4, 2020 STAFF REPORT AGENDA TITLE : RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED AUGUST 31, 2020 RECOMMENDATION Receive and file revenue and expenditure report dated August 31, 2020. EXECUTIVE SUMMARY • The report summarizes the City's year-to-date (YTD) revenues and period expenditures for July 2020 (Attachment 1). • These reports are also reviewed by the City Council. FISCAL IMPACT -None BACKGROUND/ANALYSIS Below is a summary of the column headers used on the Revenue and Expenditure Summary Reports: Original Total Budget -represents revenue and expenditure budgets the Council adopted in June 2020 for fiscal year 2020/21. Current Total Budget -represents original adopted budgets plus any Council approved budget amendments from throughout the year. The 2019/20 operating and Capital Improvement Project carryovers to 2020/21 will be processed after the year-end audit is completed. Period Activity -represents actual revenues received and expenditures outlaid in the reporting month. Fiscal Activity -represents actual revenues received and expenditures outlaid YTD. Variance Favorable/(Unfavorable) -represents the dollar difference between YTD collections/expenditures and the current budgeted amount. Percent Used -represents the percentage activity as compared to budget YTD. General Fund (GF) All Funds General Fund Payroll (GF) All Funds $ $ $ $ $ August Revenues MTD YTD 1,317 ,945 $ 1,528,086 1,964,731 $ 3,879,857 August Expenditures MTD YTD 776,516 $ 2,364,268 593,363 $ 1,950,044 1,869,999 $ 6,210,659 Total Annual Budget $ 51,076,100 $108,975,679 Total Annual Budget $ 48,583,500 $ 10,043,600 $100,472,743 Top Five Revenue/Income Sources for August General Fund Non-General Fund Transient Occupancy (Hotel) Tax $ 434,441 Non -allocated Interest (Pension Trust) Mitigation Fees $ 384,944 Allocated Interest Stale Government (CARES distribution) $ 83,672 SilverRock Greens Fees Burrtec Admin Reimbursement $ 55 ,892 Transportation Developer Impact Fees Building Plan Check Fees $ 53,378 Housing Authority Deed Repayments Top Five Expenditures/Outlays for August General Fund Non-General Fund YTD Percent of Budget 2.99% 3.56% YTD Percent of Budget 4.87% 19.42% 6.18% $ 138,616 $ 112,975 $ 97,273 $ 63,995 $ 63,744 Parks Landscape Maintenance $ 35,765 Capital Improvement Program -Construction<ll $ 313 ,585 Marketing and Tourism Promotions $ 15,265 Property Insurance Premium $ 120,255 City Bu il dings -Electricity $ 13,398 SilverRock Ma intenance $ 89,351 Janita rial $ 11,091 Lighting & Landscape Maintenance $ 57,510 Contract Services -Administrative $ 10,185 Small Business Economic Relief $ 54,475 <1 > CIP Construction : Expenses associated with SilverRock (SRR) Way street improvements and SRR site water connections . The revenue report includes revenues and transfers into funds from other funds (income items). Revenues are not received uniformly throughout the year, resulting in peaks and valleys. For example, large property tax payments are usually received in December and May. Similarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. Any timing imbalance of revenue receipts versus expenditures is funded from the City's cash flow reserve. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are more likely to be consistent from month to month. However, large debt service payments or CIP expenditures can cause swings. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Romero, Finance Director Attachment 1: Revenue and Expenditure Report for August 31, 2020 For Fiscal: 2020/21 Period Ending: 08/31/2020 10/22/2020 Page 1 of 2 Revenue Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 1,528,0861,317,94550,726,100 51,076,100 -49,548,014 2.99 % 201 - GAS TAX FUND 139,65858,8451,778,400 1,778,400 -1,638,743 7.85 % 202 - LIBRARY & MUSEUM FUND -11,55102,808,500 2,808,500 -2,820,051 0.41 % 203 - PUBLIC SAFETY FUND (MEASURE G)-1,924010,000 10,000 -11,924 19.24 % 210 - FEDERAL ASSISTANCE FUND -200141,900 141,900 -141,920 0.01 % 212 - SLESA (COPS) FUND -2910101,000 101,000 -101,291 0.29 % 215 - LIGHTING & LANDSCAPING FUND -1,03401,877,000 1,877,000 -1,878,034 0.06 % 220 - QUIMBY FUND -2,481080,000 80,000 -82,481 3.10 % 221 - AB 939 - CALRECYCLE FUND -1,253076,000 76,000 -77,253 1.65 % 223 - MEASURE A FUND -1,94401,319,000 1,319,000 -1,320,944 0.15 % 224 - TUMF FUND -376000 -376 0.00 % 225 - INFRASTRUCTURE FUND -310200200 -231 15.38 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)-11012,100 12,100 -12,111 0.09 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)005,000 5,000 -5,000 0.00 % 230 - CASp FUND, AB 1379 2,8291,35618,200 18,200 -15,371 15.54 % 231 - SUCCESSOR AGCY PA 1 RORF -17,350020,539,264 20,539,264 -20,556,614 0.08 % 235 - SO COAST AIR QUALITY FUND -37053,000 53,000 -53,037 0.07 % 237 - SUCCESSOR AGCY PA 1 ADMIN -298013,505 13,505 -13,803 2.21 % 241 - HOUSING AUTHORITY 1,158,42690,454513,300 513,300 645,126 225.68 % 243 - RDA LOW-MOD HOUSING FUND -4,181035,000 35,000 -39,181 11.95 % 247 - ECONOMIC DEVELOPMENT FUND -6,543040,000 40,000 -46,543 16.36 % 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014)0-1,82000 0 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)-6660200,000 200,000 -200,666 0.33 % 250 - TRANSPORTATION DIF FUND 66,00063,995380,000 380,000 -314,000 17.37 % 251 - PARKS & REC DIF FUND 30,60226,972304,000 304,000 -273,398 10.07 % 252 - CIVIC CENTER DIF FUND 16,55115,145110,000 110,000 -93,449 15.05 % 253 - LIBRARY DEVELOPMENT DIF 5,4784,79045,000 45,000 -39,522 12.17 % 254 - COMMUNITY CENTER DIF 6,5926,63916,500 16,500 -9,908 39.95 % 255 - STREET FACILITY DIF FUND 1,8011,63117,000 17,000 -15,199 10.59 % 256 - PARK FACILITY DIF FUND 3512807,100 7,100 -6,749 4.94 % 257 - FIRE PROTECTION DIF 6,4365,78555,500 55,500 -49,064 11.60 % 270 - ART IN PUBLIC PLACES FUND 12,98411,326111,000 111,000 -98,016 11.70 % 275 - LQ PUBLIC SAFETY OFFICER -7502,600 2,600 -2,675 2.90 % 299 - INTEREST ALLOCATION FUND 351,742112,97500 351,742 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 -1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 0019,058,300 19,077,810 -19,077,810 0.00 % 405 - SA PA 1 CAPITAL IMPRV FUND -9,8880100,000 100,000 -109,888 9.89 % 501 - FACILITY & FLEET REPLACEMENT -5,3110902,500 902,500 -907,811 0.59 % 502 - INFORMATION TECHNOLOGY 1,4151,6201,721,500 1,721,500 -1,720,085 0.08 % 503 - PARK EQUIP & FACILITY FUND -5,7920245,000 245,000 -250,792 2.36 % 504 - INSURANCE FUND -330928,500 928,500 -928,533 0.00 % 601 - SILVERROCK RESORT 248,215108,1773,882,100 3,882,100 -3,633,885 6.39 % 602 - SILVERROCK GOLF RESERVE -83104,500 4,500 -5,331 18.46 % 760 - SUPPLEMENTAL PENSION PLAN -16306,500 6,500 -6,663 2.51 % 761 - CERBT OPEB TRUST 0060,000 60,000 -60,000 0.00 % 762 - PARS PENSION TRUST 374,779138,616300,000 300,000 74,779 124.93 % Report Total:1,964,731 3,879,857108,606,169 108,975,679 -105,095,822 3.56 % Accounts are subject to adjusting entries and audit. The City's Comprehensive Annual Financial Report (CAFR), published annually in December, is the best resource for all final audited numbers. ATTACHMENT 1 For Fiscal: 2020/21 Period Ending: 08/31/2020 10/22/2020 Page 2 of 2 Expenditure Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 2,364,268776,51647,911,600 48,583,500 46,219,232 4.87 % 201 - GAS TAX FUND 61,78937,2471,775,300 1,775,300 1,713,511 3.48 % 202 - LIBRARY & MUSEUM FUND 34,41423,4031,715,100 1,715,100 1,680,687 2.01 % 203 - PUBLIC SAFETY FUND (MEASURE G)001,000,000 1,000,000 1,000,000 0.00 % 210 - FEDERAL ASSISTANCE FUND 00141,900 141,900 141,900 0.00 % 212 - SLESA (COPS) FUND 00100,000 100,000 100,000 0.00 % 215 - LIGHTING & LANDSCAPING FUND 193,970111,2901,876,600 1,876,600 1,682,630 10.34 % 221 - AB 939 - CALRECYCLE FUND 2000100,000 100,000 99,800 0.20 % 223 - MEASURE A FUND 001,263,900 944,510 944,510 0.00 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)9,750012,000 12,000 2,250 81.25 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)005,000 5,000 5,000 0.00 % 230 - CASp FUND, AB 1379 004,400 4,400 4,400 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 008,405,468 8,405,468 8,405,468 0.00 % 235 - SO COAST AIR QUALITY FUND 5542,200 42,200 42,195 0.01 % 237 - SUCCESSOR AGCY PA 1 ADMIN 0013,505 13,505 13,505 0.00 % 241 - HOUSING AUTHORITY 69,07340,930822,300 822,300 753,227 8.40 % 243 - RDA LOW-MOD HOUSING FUND 00250,000 250,000 250,000 0.00 % 244 - HOUSING GRANTS (Multiple)6,4976,49700 -6,497 0.00 % 247 - ECONOMIC DEVELOPMENT FUND 169,40994,45110,000 10,000 -159,409 1,694.09 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)618,00006,185,000 6,185,000 5,567,000 9.99 % 250 - TRANSPORTATION DIF FUND 001,293,000 1,293,000 1,293,000 0.00 % 253 - LIBRARY DEVELOPMENT DIF 0030,000 30,000 30,000 0.00 % 256 - PARK FACILITY DIF FUND 0005,600 5,600 0.00 % 270 - ART IN PUBLIC PLACES FUND 11,23811,238110,000 110,000 98,763 10.22 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 1,382,345313,04319,058,300 19,077,810 17,695,465 7.25 % 501 - FACILITY & FLEET REPLACEMENT 31,64914,254902,500 902,500 870,851 3.51 % 502 - INFORMATION TECHNOLOGY 365,19487,4111,684,200 1,684,200 1,319,006 21.68 % 503 - PARK EQUIP & FACILITY FUND 10595,000 606,400 606,399 0.00 % 504 - INSURANCE FUND 508,095123,244827,500 827,500 319,405 61.40 % 601 - SILVERROCK RESORT 362,674225,8023,881,500 3,881,500 3,518,826 9.34 % 760 - SUPPLEMENTAL PENSION PLAN 12,833012,850 12,850 17 99.87 % 761 - CERBT OPEB TRUST 001,500 1,500 1,500 0.00 % 762 - PARS PENSION TRUST 9,2564,67052,000 52,000 42,744 17.80 % Report Total:1,869,999 6,210,659100,083,723 100,472,743 94,262,084 6.18 % Accounts are subject to adjusting entries and audit. The City's Comprehensive Annual Financial Report (CAFR), published annually in December, is the best resource for all final audited numbers. Fund #Name Notes 101 General Fund The primary fund of the City used to account for all revenue and expenditures of the City; a broad range of municipal activities are provided through this fund. 201 Gas Tax Fund Gasoline sales tax allocations received from the State which are restricted to street-related expenditures. 202 Library and Museum Fund Revenues from property taxes and related expenditures for library and museum services. 203 Public Safety Fund General Fund Measure G sales tax revenue set aside for public safety expenditures. 210 Federal Assistance Fund Community Development Block Grant (CDBG) received from the federal government and the expenditures of those resources. 212 SLESF (COPS) Fund Supplemental Law Enforcement Services Funds (SLESF) received from the State for law enforcement activities. Also known as Citizen's Option for Public Safety (COPS). 215 Lighting & Landscaping Fund Special assessments levied on real property for city-wide lighting and landscape maintenance/improvements and the expenditures of those resources. 217 Development Agreement Revenue and Expenditures related to development agreement for Village. 220 Quimby Fund Developer fees received under the provisions of the Quimby Act for park development and improvements. 221 AB939 Fund/Cal Recycle Franchise fees collected from the city waste hauler that are used to reduce waste sent to landfills through recycling efforts. Assembly Bill (AB) 939. 223 Measure A Fund County sales tax allocations which are restricted to street-related expenditures. 224 TUMF Fund Developer-paid Transportation Uniform Mitigation Fees (TUMF) utilized for traffic projects in Riverside County. 225 Infrastructure Fund Developer fees for the acquisition, construction or improvement of the City’s infrastructure as defined by Resolution 226 Emergency Mgmt. Performance Grant (EMPG) Federal Emergency Management Agency (FEMA) grant for emergency preparedness. 227 State Homeland Security Programs (SHSP) Federal Emergency Management Agency (FEMA) grant for emergency preparedness. 230 CASP Fund, AB1379 / SB1186 Certified Access Specialist (CASp) program fees for ADA Accessibility Improvements; derived from Business License renewals. Assembly Bill (AB) 1379 and Senate Bill (SB) 1186. 231 Successor Agency PA 1 RORF Fund Successor Agency (SA) Project Area (PA) 1 Redevelopment Obligation Retirement Fund (RORF) for Redevelopment Property Tax Trust Fund (RPTTF) taxes received for debt service payments on recognized obligations of the former Redevelopment Agency (RDA). 235 SO Coast Air Quality Fund (AB2766, PM10)Contributions from the South Coast Air Quality Management District. Uses are limited to the reduction and control of airborne pollutants. Assembly Bill (AB) 2766. 237 Successor Agency PA 1 Admin Fund Successor Agency (SA) Project Area (PA) 1 for administration of the Recognized Obligation Payment Schedule (ROPS) associated with the former Redevelopment Agency (RDA). 241 Housing Authority Activities of the Housing Authority which is to promote and provide quality affordable housing. 243 RDA Low-Moderate Housing Fund Activities of the Housing Authority which is to promote and provide quality affordable housing. Accounts for RDA loan repayments (20% for Housing) and housing programs,. 244 Housing Grants Activites related Local Early Action Planning (LEAP) and SB2 grants for housing planning and development. 247 Economic Development Fund Proceeds from sale of City-owned land; transferred from General Fund for future economic development. 248 SA 2004 LO/MOD Bond Fund Successor Agency (SA) low/moderate housing fund; 2004 bonds refinanced in 2014; for Washington Street Apartment rehabilitation only. 249 SA 2011 Low/Mod Bond Fund Successor Agency (SA) low/moderate housing fund; 2011 bonds refinanced in 2016. 250 Transportation DIF Fund Developer impact fees collected for specific public improvements - transportation related. 251 Parks & Rec. DIF Fund Developer impact fees collected for specific public improvements - parks and recreation. 252 Civic Center DIF Fund Developer impact fees collected for specific public improvements - Civic Center. 253 Library Development DIF Fund Developer impact fees collected for specific public improvements - library. 254 Community Center DIF Fund Developer impact fees collected for specific public improvements - community center. 255 Street Facility DIF Fund Developer impact fees collected for specific public improvements - streets. 256 Park Facility DIF Fund Developer impact fees collected for specific public improvements - parks. 257 Fire Protection DIF Fund Developer impact fees collected for specific public improvements - fire protection. 270 Art In Public Places Fund Developer fees collected in lieu of art placement; utilized for acquisition, installation and maintenance of public artworks. 275 LQ Public Safety Officer Fund Annual transfer in from General Fund; distributed to public safety officers disabled or killed in the line of duty. 299 Interest Allocation Fund Interest earned on investments. 310 LQ Finance Authority Debt Service Fund Accounted for the debt service the Financing Authority’s outstanding debt and any related reporting requirements. This bond was fully paid in October 2018. 401 Capital Improvement Program Fund Planning, design, and construction of various capital projects throughout the City. 405 SA PA 1 Capital Improvement Fund Successor Agency (SA) Project Area (PA) 1 bond proceeds restricted by the bond indenture covenants. Used for SilverRock infrastructure improvements. 501 Equipment Replacement Fund Internal Service Fund for vehicles, heavy equipment, and related facilities. 502 Information Technology Fund Internal Service Fund for computer hardware and software and phone systems. 503 Park Equipment & Facility Fund Internal Service Fund for park equipment and facilities. 504 Insurance Fund Internal Service Fund for city-wide insurance coverages. 601 SilverRock Resort Fund Enterprise Fund for activities of the city-owned golf course. 602 SilverRock Golf Reserve Fund Enterprise Fund for golf course reserves for capital improvements. 735 97-1 Agency Redemption Fund To account for sewer improvement assessments. 760 Supplemental Pension Plan (PARS Account) Supplemental pension savings plan for excess retiree benefits to general employees of the City. 761 Other Post Benefit Obligation Trust (OPEB) For retiree medical benefits and unfunded liabilities. 762 Pension Trust Benefit (PARS Account)For all pension-related benefits and unfunded liabilities. Fund Descriptions City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 4, 2020 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2019/20 GENERAL FUND YEAR-END BUDGET REPORT RECOMMENDATION Receive and file Fiscal Year 2019/20 General Fund Year-End Budget Report. EXECUTIVE SUMMARY •After closing the prior fiscal year (FY), Finance presents a year-end summary that compares the final budget to actual transactions. •Revenue was nearly $2.9 million higher than budgeted. •Expenditures (including approved carryovers from FY 2018/19 into FY 2019/20) were $16.8 million under budget. Of these savings, approximately $14.9 million will be carried over to 2020/21 for capital improvements and operations, and $2.1 million was allocated to Measure G reserves for net savings of $718,326. •The City Council will be presented this report on November 3, 2020. FISCAL IMPACT Amended budget carryovers from 2019/20 to 2020/21 total $16,930,044 for all Funds and are funded with budgetary savings from 2019/20. BACKGROUND/ANALYSIS The Fiscal Year 2019/20 General Fund Year-End Budget Report (Report) focuses on the General Fund. Revenues were over budget by $2,842,132; mostly due to taxes and interest earnings. BUSINESS SESSION ITEM NO. 1 ESTIMATED REVISED General Fund (101) - Operating 602,600$ 1,778,800$ General Fund (101) - Capital Improvements 13,000,000$ 13,155,144$ Gas Tax Fund (201)-$ 82,000$ Library and Museum Fund (202)280,000$ 280,000$ Lighting & Landscape Fund (215)100,000$ 250,000$ Economic Development Fund (247)1,000,000$ 951,400$ Facility and Fleet Replacement Fund (501)-$ 150,000$ Information Technology Fund (502)-$ 240,000$ Housing Authority Fund (241)-$ 42,700$ 14,982,600$ 16,930,044$ TOTAL CARRYOVERS BY FUND CARRYOVER TOTALS BY FUND Overall, 96% of department expenditures were under budget with total savings of $16,791,904. Of these savings, $14,933,944 will be carried over to FY 2020/21 for multi-year capital projects and operations. The net savings (net of carryovers) were $718,326. Revenues, expenditures, carryovers, reserve balances, and a year-over-year comparison are discussed in the Fiscal Year 2019/20 General Fund Year-End Budget Report (Attachment 1). ALTERNATIVES The Commission may request additional information regarding this Report. Prepared by: Karla Romero, Finance Director Approved by: Jon McMillen, City Manager Attachment: 1. Fiscal Year 2019/20 General Fund Year-End Budget Report OVERVIEW The City oversees multiple sources of funds which are reported in the Comprehensive Annual Financial Report (CAFR) issued prior to December 30th of each year and presented at a public meeting shortly thereafter. This Fiscal Year 2019/20 Budget Report (Report) focuses on the General Fund and summarizes the overall financial activities of fiscal year (FY) 2019/20 and the City’s financial position through June 30, 2020. The FY 2019/20 budget was altered by unforeseen COVID-related adjustments; therefore, the Report also includes a summary comparison to FY 2018/19, which further illustrates the financial impacts resulting from volatile economic conditions. The chart below provides a summary comparison of the FY 2019/20 final budget versus actual revenues and expenses. FISCAL YEAR 2019/20 GENERAL FUND YEAR-END BUDGET REPORT General Fund 2019/20 Final Budget 2019/20 Actuals Col Variance Operational Revenues 52,928,830 55,770,962 *2,842,132 Capital/Operational Carryovers 12,598,462 12,598,462 - Unassigned Reserves for CIP 234,804 234,804 - Pension Trust Reserves 3,460,000 3,460,000 - Economic Disaster Reserves 1,500,000 1,500,000 - Total Revenues 70,722,096 73,564,228 2,842,132 - Operational/CIP Expenses Multi-Year Capital Improvements 20,518,423 7,251,369 (13,267,054) Operational 52,049,295 48,524,445 *(3,524,850) Expenses Before Carryovers 72,567,718 55,775,814 (16,791,904) - Plus Carryovers to 2020/21 Multi-Year Capital Improvements 13,155,144 13,155,144 Operational 1,778,800 1,778,800 Adjusted Expenditures 72,567,718 70,709,758 (1,857,960) Plus Measure G Reserves 1,316,400 2,136,144 819,744 Total Expenditures 73,884,118 72,845,902 (1,038,216) Surplus/(Deficit) After Carryovers (3,162,022) 718,326 3,880,348 *Reduced by non-cash transactions described in the 2019/20 Year-End Budget Report. ATTACHMENT 1 The General Fund performed well, with revenues exceeding budgetary projections and expenditures having savings. In 2019/20, the City leveraged one-time revenues to fund capital improvements, increase the Pension Trust contribution, and contribute to the Economic Development Fund to establish several Small Business Economic Relief Programs. The final budget, including adjustments approved during FY 2019/20, is detailed in Exhibit A of this report. Operational revenues were approximately $2.9 million over budget and expenses after adjustments, carryovers, and reserve savings were $1,038,216 under budget resulting in a budget surplus of $3,880,348. Stronger than expected revenues are credited to the quick adaptation by many consumers and businesses to virtual interactions and safe physical distancing practices, unprecedented monetary support by the Federal Reserve, and multiple fiscal stimulus packages deployed. REVENUE VARIANCES As detailed in Exhibit B and summarized on the chart below, most General Fund revenues experienced positive variances when compared to the final budget. Two categories representing the largest variances included taxes and use of money and property. • Taxes represent 75% of all General Fund revenues and include the three largest funding sources for the City – sales taxes $19,136,015, property taxes $9,653,473, and transient occupancy taxes (TOT) $7,603,481. Combined, these top three revenues account for $36,392,969 or 84% of all taxes. General Fund Revenues 2019/20 Final Budget 2019/20 Actuals Variance % Variance Tax Revenue 40,115,600 43,286,631 3,171,031 8% Licenses & Permits 1,346,400 1,911,656 565,256 42% Intergovernmental 8,626,230 7,079,738 (1,546,492) -18% Charges for Services 999,800 1,169,982 170,182 17% Fines, Forfeitures & Abatements 276,500 375,713 99,213 36% Use of Money & Property 943,000 3,020,427 2,077,427 220% Miscellaneous/Transfers In 621,300 1,245,086 623,786 100% Total Revenues 52,928,830 58,089,233 5,160,403 10% Non-Cash Adjustments Investments Fair Market Value Adjustment (1,624,037) (1,624,037) RDA Loan Interest Earned, Extraordinary Gain (694,234) (694,234) (2,318,271) (2,318,271) Total Adjusted Revenues 52,928,830 55,770,962 2,842,132 • Licenses and permits continued to perform well. COVID did not shut down the building industry and in most instances allowed for the acceleration of current projects. • The Intergovernmental revenue variance is a result of not drawing down $1,046,529 from Fire Service Reserves and $508,961 is for a pending CSA 152 Assessment reimbursement which was billed but not received in FY 2019/20. This reimbursement will be recognized in FY 2020/21. • Use of Money and Property includes the annual fair market value adjustment to the City’s investments. In FY 2019/20 the portfolio holdings were valued greater than book value due to market conditions, therefore a positive adjustment in the amount of $1,624,037 was recorded. This amount has been reduced as an adjustment to revenues, as it is not cash received nor anticipated to be received in the future. The City’s investments have a five-year horizon with laddered maturities. The City has worked diligently to leverage highly restricted investments under volatile market conditions. At June 30, 2019, the portfolio was earning a 2.04% rate of return and on June 30, 2020 the return was 1.82%. Today the average investment purchases are yielding about a 0.50% return. In addition, General Fund interest earnings have increased after the passage of Measure G because the portfolio investment balance has increased for multi-year capital funding. • Miscellaneous and Transfers In revenue includes $694,234 to record the annual former Redevelopment Agency loan repayment interest earned in FY 2019/20. The loan repayments are structured to pay all principal first, then interest. Each year the City records the payment received and interest earned in accordance with the State Department of Finance approved loan repayment schedule. This amount is also reduced from revenues as an adjustment because it is earned, but not received until a future date. EXPENSE VARIANCES General Fund expenses are summarized on the following page by department, and details by department and expense category are located in Exhibit C. Overall, despite significant reductions to budgets during FY 2019/20, nearly all departments remained within budget. Savings were derived from the judicious management of contract and professional services, postponing non-critical repairs and upgrades, and salary and benefits savings from vacant and temporarily furloughed positions. General Fund Expenditures 2019/20 Final Budget 2019/20 Actuals Variance Carryovers to 2020/21 City Council 294,700 250,144 (44,556) - City Manager 861,975 751,206 (110,769) 50,000 City Attorney 565,000 550,548 (14,452) - Human Resources 537,000 521,077 (15,923) 10,000 City Clerk 580,530 502,284 (78,246) 25,700 Finance 1,256,400 1,194,343 (62,057) 30,000 Centralized Services*30,288,318 16,744,332 (13,543,986) 13,801,221 Police 16,396,100 16,278,322 (117,778) 30,000 Fire 8,254,300 6,804,305 (1,449,995) 609,723 Community Resources Admin. 912,650 823,403 (89,247) 30,000 Wellness Center Operations 725,720 670,974 (54,746) 15,000 Recreational Programs & Events 633,130 456,413 (176,717) 40,000 Parks Maintenance 2,155,800 1,958,099 (197,701) 59,000 Marketing & Community Relations 1,338,469 1,052,957 (285,512) 90,000 Public Buildings 1,142,200 1,069,132 (73,068) - Design & Development Admin.952,300 869,367 (82,933) - Planning 591,000 507,224 (83,776) 55,000 Building 899,100 789,707 (109,393) 10,000 Code Compliance/Animal Control 1,279,600 1,144,286 (135,314) 50,000 The Hub 1,012,100 975,546 (36,554) 25,000 Public Works Administration - 13,288 13,288 Public Works Dev. Services 566,500 556,793 (9,707) - Streets 125,961 123,180 (2,781) - Engineering Services 1,198,865 1,168,884 (29,981) 3,300 Total Operating/CIP Expenditures 72,567,718 55,775,814 (16,791,904) 14,933,944 Estimated Actual Variance Carryovers to 2020/21 Capital Improvements - 13,155,144 13,155,144 Operational - 1,778,800 1,778,800 Total Carryovers - 14,933,944 14,933,944 Adjusted Expenditures before Reserves 72,567,718 70,709,758 (1,857,960) Plus Measure G Reserves 1,316,400 2,136,144 819,744 Total Adjusted Expenses 73,884,118 72,845,902 (1,038,216) * Non-cash expense of $327,338 removed from Actual Centralized Services expenses. • The largest budget variance was reflected in Centralized Services (CS). CS captures citywide expenses such as pension liabilities, retiree medical benefits, and transfers out to other funds such as the Gas Tax Fund for street improvements, Lighting and Landscape Fund, SilverRock Golf Course Fund, Public Safety Fund, Economic Development Fund and the Capital Improvement Project Fund. This department also has the greatest carryovers to FY 2020/21 to fund multi-year capital improvement projects as detailed in Exhibit D. The majority of capital improvement carryover funding ($9,892,641 or 75%) is provided from Measure G sales tax revenue. In FY 2019/20 CS also included a non-cash expense of $327,338 to record the disposal of 35 acres of SilverRock land held for resale. This park land is now a capital asset under the Park and Equipment Fund of the City and the non-cash transaction has been removed from the summary chart on the preceding page and noted in Exhibit C. • Total savings of $1,449,995 derived from Fire Services included $490,723 for the fire station 70 revitalization project, which is being carried over to FY 2020/21 and contract service savings of $673,358. Carryovers totaling $609,723 also include vehicle equipment upgrades and fire station 93 building improvements. • Marketing savings of $285,512 were derived from postponed marketing campaigns during the final quarter of the fiscal year. Of this amount, $90,000 is being carried over to FY 2020/21 for commercial, photography, and other marketing campaigns. • Parks Maintenance savings of $197,701 were a result of postponed maintenance services and supplies; of these savings, $59,000 is being carried over to FY 2020/21 for irrigation and landscape improvements, repairs, and painting of light posts. • One department was over budget. o Public Works Administration did not have a budget in FY 2019/20 because the department was not active prior to the Public Works/Engineering reorganization, which occurred in February 2020. Salary and benefit expenses of $13,288 resulted from the final payroll cycle of the FY. Operational carryovers, detailed in Exhibit E, from FY 2019/20 to FY 2020/21 increased by $1,176,200 from the original anticipated amount of $602,600 to $1,778,800. This increase is recommended because of the continued volatility in reopening the economy, which impacts City operations. In addition, carryovers allow for operational flexibility, recognize updated Federal guidelines which disallow many previously allowed COVID-related reimbursable expenses, and amended operational needs such as the implementation of best practice recommendations from the Short-Term Vacation Rental Committee. Funds not being carried over are recognized as Unassigned Reserve Fund balance in the General Fund. CIP revenue commitments are reflected in assigned reserves and operational carryovers are noted in committed reserves, both discussed next. RESERVES The chart below depicts reserve balances by category and the value change from June 30, 2019 to June 30, 2020. These reserve balances reflect the financial health of the City at fiscal-year end. Reserve/Fund Balance As of June 30, 2019 As of June 30, 2020 Change in Value Non-Spendable Prepaid Costs 37,182 14,065 (23,117) Land Held for Resale 5,730,990 5,403,652 (327,338) Advances to Other Funds - - - Due from Other Governments 27,915,770 26,069,742 (1,846,028) Total Non-Spendable 33,683,942 31,487,459 (2,196,483) Restricted Pension Trust 6,540,000 10,249,738 3,709,738 Committed Operational Carryovers 745,300 1,778,800 1,033,500 Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 10,000,000 10,000,000 - Economic Disaster 11,000,000 6,800,000 (4,200,000) Capital Replacement Reserve 5,000,000 6,540,000 1,540,000 Total Committed 31,745,300 30,118,800 (1,626,500) Assigned Public Safety Fire Services 9,864,841 10,491,654 626,813 Measure G Sales Tax 7,721,975 8,736,219 1,014,244 Capital Projects 11,853,162 13,155,144 1,301,982 Total Assigned 29,439,978 32,383,017 2,943,039 Unassigned 16,228,627 8,844,915 (7,383,712) TOTAL FUND BALANCE 117,637,847 113,083,929 (4,553,918) • Non-spendable balance decreased by a total of $2,196,483 and included: • The disposal of 35 acres of Land Held for Resale at SilverRock for a total value of $327,338. This property is now recognized as a City Park and home of the SilverRock Event Site. The FY 2019/20 Redevelopment Agency loan repayment of $2,540,262 and interest earnings of $694,234 resulted in a decrease of $1,846,028 in Due from Other Governments. • The Due from Other Governments balance of $26,069,742 represents the principal ($15,662,342) and interest ($10,407,400) owed to the General Fund (80% of total loan repayments). An additional 20% or $6,978,943 is recognized in the Housing Authority Fund. The total outstanding loan balance as of June 30, 2020 was $33,048,685. Non-spendable reserves cannot be used to fund ongoing operations and primarily represent commitments due to the General Fund. • Restricted reserves are limited to funds held in a Section 115 Pension Trust set aside to fund the City’s pension obligations. The trust was initially established in FY 2018/19 with $6,540,000 and in FY 2019/20 an additional $3,460,000 was deposited. Coupled with investment gains, resulted in an increase in total value to $3,709,738. • Committed reserves decreased by $1,626,500. The increase of $1,033,500 in operational carryovers is detailed in Exhibit E and is lowering the Unassigned fund balance. During the FY 2019/20 Mid-Year Budget Report, the Unassigned balance was reduced by $5,000,000 and used to fund the following reserves: • $1,540,000 for Capital Replacement Reserves • $3,460,000 for the Pension Trust In March 2020, the Council allocated $4,200,000 from the Economic Disaster Reserve to cover anticipated COVID revenue shortfalls ($2,700,000) and established Small Business Economic Relief Programs ($1,500,000). • An increase of $2,943,039 in assigned reserves was due to multi-year capital improvement project funding ($1,301,982), which is also lowering the Unassigned fund balance. During FY 2019/20 the Measure G reserve allocation was $2,136,144 and $1,121,900 was allocated from prior year Measure G reserves to increase the funding for the SilverRock Event Site; resulting in an overall increase of $1,014,244 to Measure G reserves. The 2020/21 Mid-Year Budget Report will be presented in February 2021. Usually the Mid-Year Budget Report includes funding options for Council to consider placing a portion of unassigned reserves into Restricted or Committed reserves which are not fully funded. Staff will continue to monitor current economic impacts, local business restrictions, and current operating expenses to determine if additional reserve funding is recommended during the Mid-Year Budget Report. Current reserve balances and targets are summarized below. Reserve/Trust Reserve Target Current Funding Over/(Under) Funded Annual Target Emergency Reserve Natural Disaster 10,000,000 10,000,000 - 1,500,000 Economic Disaster 11,000,000 6,800,000 (4,200,000) 1,000,000 Total 21,000,000 16,800,000 (4,200,000) 2,500,000 Cash Flow Reserve 5,000,000 5,000,000 - - Capital Replacement 10,000,000 6,540,000 (3,460,000) 1,000,000 Total Reserves 36,000,000 28,340,000 (7,660,000) 3,500,000 Pension Trust Fund 10,000,000 10,249,738 249,738 1,000,000 Unassigned Reserves 10,000,000 8,844,915 (1,155,085) - Overall Total 56,000,000 47,434,653 (8,565,347) 4,500,000 YEAR-OVER-YEAR COMPARISON In FY 2018/19, the City received total General Fund revenues of $62,668,834 and before March 2020 and COVID impacts, was on pace to exceed this amount. The chart on the following page provides a year-over-year revenue comparison. Tax revenues include the top three revenue sources of the City; sales taxes, property taxes, and transient occupancy taxes (TOT). Property taxes experienced a gain of $300,792; while sales taxes and TOT declined by $1,769,228 and $3,079,396 respectively. In FY 2018/19 and FY 2019/20, the adjustment to the fair market value of investments was $604,126 and $1,624,037 respectively. In FY 2019/20, the RDA loan interest earnings of $694,234 were also reduced for this year-over- year comparison. As discussed earlier these are non-cash transactions. After these adjustments, the year-over-year revenue variance reflects a total decline of $6,897,872. General Fund Expenses and Carryovers for FY’s 2018/19 and 2019/20 are compared in the chart below. General Fund Expenses 2018/19 2019/20 Variance Operating & CIP 57,191,129 *55,775,814 *(1,415,315) Measure G Reserves 3,412,005 2,136,144 (1,275,861) * Reduced by non-cash transactions. Carryovers 2018/19 2019/20 Variance Capital Improvements 11,853,162 13,155,144 1,301,982 Operational 745,300 1,778,800 1,033,500 General Fund Revenues 2018/19 2019/20 Variance Tax Revenue 47,664,927 43,286,631 (4,378,296) Licenses & Permits 1,545,524 1,911,656 366,132 Intergovernmental 7,256,245 7,079,738 (176,507) Charges for Services 1,153,487 1,169,982 16,495 Fines, Forfeitures & Abatements 384,308 375,713 (8,595) Use of Money & Property 2,046,307 *1,396,390 *(649,917) Miscellaneous/Transfers In 2,622,105 550,852 *(2,071,253) Total Revenues 62,672,903 55,770,962 (6,901,941) * Reduced by non-cash transactions. •Expenses were $1,087,977 or 2% less in FY 2019/20 when compared to FY 2018/19, however, FY 2019/20 included several unanticipated furloughs, unfilled vacant positions, and forced reductions to the operating budget as a result of anticipated declines in revenues due to COVID. •The Measure G sales tax reserve allocation declined as a result of reduced revenues and a year-over-year increase of $1,795,000 in the allocation for police services. Details regarding Measure G revenues and uses can be found in the Annual Measure G Sales Tax Report. •Capital Improvement carryovers increased by $1,301,982 and represent 25 active capital projects detailed in Exhibit D of this Report. In FY 2018/19, there were 16 active projects. •If approved, the amended Operational Carryovers would have a year- over-year increase of $1,033,500. The adopted FY 2020/21 Budget has minimal operational flexibility to accommodate additional requests for unforeseen needs such as staffing shortfalls, updates to processes, additional marketing efforts, or consulting services for fee studies. At this time, based on current economic conditions, Finance does not anticipate increasing revenues in FY 2020/21; therefore expense adjustments in FY 2020/21 may be limited to these carryovers. __________________________________________________________________ Questions regarding this report may be directed to the Finance Department by calling 760-777-7150 or by email at finance@laquintaca.gov. EXHIBIT A 2019/20 GENERAL FUND BUDGET ADJUSTMENT DETAILS The 2019/20 Budget was adopted in June 2019 and budgetary adjustments detailed below were approved throughout the fiscal year to reflect updated economic conditions and operational needs. One-time funds, which include the use of reserves and carryovers from 2018/19 to 2019/20, are color coded in blue. These one-time funds were used for multi-year capital projects ($13,633,266), to establish Small Business Loan Programs ($1,500,000), and for an additional contribution to the Pension Trust Fund ($3,460,000). The use of these reserve funds was limited to one-time expenses and do not support ongoing operational needs. The remaining adjustments were operational. Operating Revenue 57,847,200$ Carryover Funding (Capital Projects/Operating)12,598,462 1st Quarter Adjustment (110,000) Use of Unassigned Reserves, Dune Palms Rd. 138,839 Use of Unassigned Reserves, Dune Palms Rd. 95,965 2nd Quarter Adjustments Operating 1,377,000 2nd Quarter Adjustments Measure G Reserves 800,000 2020 Census, County Revenue 10,669 3rd Quarter Adjustments COVID Reductions (7,050,000) Economic Disaster Reserves, Loan Program 1,500,000 Pension Trust Contribution 3,460,000 CSA 152 Reimbursement 53,961 TOTAL REVENUES 70,722,096 55,638,500 12,598,462 167,000 (213,482) 22,900 138,839 242,436 95,965 527,468 800,000 10,669 (2,458,600) 500,000 1,500,000 (516,400) 3,460,000 Operating/CIP Expenses Carryover Funding (Capital Projects/Operating) Dune Palms Rd. Widening La Quinta Landscape Improvement Fritz Burns Pool Maintenance Dune Palms Rd. Drainage Improvements Citywide Drainage Dune Palms, Whitewater Channel Scour Analysis 2nd Quarter Adjustments Operating Alongi Building, Allocated Measure G Reserves 2020 Census Community Outreach 3rd Quarter Adjustments COVID Reductions 3rd Quarter Adjustments COVID Expenses Transfer Out, Small Business Loan Programs Measure G Reserves Pension Trust Contribution Vacuum Excavator Heavy Equipment 53,961 TOTAL EXPENDITURES 72,567,718 Plus Measure G Reserves 1,316,400 TOTAL EXPENDITURE AFTER RESERVES 73,884,118 AMENDED BUDGET DEFICIT (3,162,022)$ GENERAL FUND BUDGET SUMMARY 2018/19 Actuals 2019/20 Original Budget 2019/20 Final Budget 2019/20 Actuals 101 - GENERAL FUND 310 - Tax Revenues 2,382,606 2,306,200 2,306,200 2,429,495101-0000-40310 Property Tax Revenue 4,717,774 4,692,000 4,692,000 4,664,722101-0000-40311 No-Low City Property Tax 2,252,301 2,346,000 2,346,000 2,559,256101-0000-40315 RPTTF Pass Through 9,947,125 9,535,900 8,235,900 8,825,489101-0000-41320 State Sales Tax 10,958,118 10,246,500 9,646,500 10,310,526101-0000-41326 Measure G Sales Tax 713,237 575,000 575,000 662,545101-0000-41327 Document Transfer Tax 6,718,848 6,600,000 3,830,000 4,426,061101-0000-41400 TOT - Hotels 3,489,726 2,800,000 2,205,000 2,851,145101-0000-41401 TOT - Short Term Vac. Rentals 97,870 100,000 50,000 63,581101-0000-41402 TOT - Bed and Breakfast 376,433 360,000 260,000 262,694101-0000-41416 TOT - Resort Fees 791,256 750,000 750,000 852,858101-0000-41505 Franchise Taxes - Burrtec 133,519 129,000 129,000 159,003101-0000-41508 Southern California Gas Franchise Fee 694,603 600,000 600,000 671,888101-0000-41509 Cable Television Franchise Fee 304,975 325,000 325,000 256,952101-0000-41510 Communications Franchise Fees 4,086,536 4,165,000 4,165,000 4,290,417101-0000-41800 Property Tax in Lieu of VLF 310 - Tax Revenues Totals:47,664,927 45,530,600 40,115,600 43,286,631 320 - Licenses & Permits 16,575 4,000 4,000 13,975101-0000-41411 STVR Inspection Fee 146,914 120,000 147,000 279,878101-0000-41415 STVR Registration Fee 410,762 345,000 345,000 371,294101-0000-41600 Business Licenses 3,475 500 500 1,195101-0000-41610 Film Permits 146,528 150,000 150,000 444,444101-0000-42400 Building Permits 74,983 55,000 55,000 98,478101-0000-42401 Plumbing Permits 86,146 75,000 75,000 92,896101-0000-42402 Mechanical Permits 56,202 50,000 50,000 77,005101-0000-42403 Electrical Permits 197,580 150,000 150,000 174,893101-0000-42404 Miscellaneous Permits 9,580 11,000 11,000 6,020101-0000-42405 Garage Sale Permits 160 200 200 450101-0000-42406 Golf Cart Permits 13,790 7,000 11,000 26,718101-0000-42408 Grading Permits 7,314 4,000 4,000 1,687101-0000-42410 Driveway Permits 20 500 500 0101-0000-42414 Massage Permits 53,496 50,000 50,000 73,338101-0000-42420 Fire Plan Review Fee 37,518 30,000 30,000 56,535101-0000-42421 Fire Inspection Fee 2,078 2,000 2,000 2,142101-0000-42430 Transportation Permits 9,346 13,000 13,000 21,640101-0000-42431 Conditional Use Permits 2,875 2,800 2,800 2,789101-0000-42433 Minor Use Permit 14,385 18,000 18,000 19,695101-0000-42434 Sign Permit 56,125 54,000 54,000 24,948101-0000-42435 Site Development Permit 5,817 12,100 12,100 11,709101-0000-42436 Final Landscaping Plans 0 3,300 3,300 0101-0000-42437 Development Agreement 10,087 8,000 8,000 5,052101-0000-42439 Temporary Use Permit 183,768 150,000 150,000 96,908101-0000-43632 Public Works Permits 0 0 0 7,967101-0000-43638 NPDES Inspections 320 - Licenses & Permits Totals:1,545,524 1,315,400 1,346,400 1,911,656 330 - Intergovernmental 15,000 0 0 0101-0000-41710 State Gov't Revenue 0 0 10,669 0101-0000-41720 County Government Revenue 7,071,162 7,127,700 7,127,700 7,057,071101-0000-42500 Fire Service Credit 0 975,900 975,900 0101-0000-42501 Fire Service Reserves 165,583 455,000 508,961 0101-0000-43633 CSA 152 Assessments 4,500 3,000 3,000 22,668101-0000-43650 Contributions from Other Agencies 330 - Intergovernmental Totals:7,256,245 8,561,600 8,626,230 7,079,738 340 - Charges for Services 36,712 45,000 45,000 19,432101-0000-42200 Leisure Enrichment 12,078 6,000 6,000 6,668101-0000-42202 Gift Shop 41,782 45,000 45,000 23,138101-0000-42210 Youth Sports 950 6,000 6,000 705101-0000-42211 Adult Sports 43,217 35,000 35,000 27,972101-0000-42212 Facility Rental 17,685 20,000 20,000 12,865101-0000-42213 Special Event 2,382,606 2,306,200 2,306,200 2,429,495 4,717,774 4,692,000 4,692,000 4,664,722 2,252,301 2,346,000 2,346,000 2,559,256 9,947,125 9,535,900 8,235,900 8,825,489 10,958,118 10,246,500 9,646,500 10,310,526 713,237 575,000 575,000 662,545 6,718,848 6,600,000 3,830,000 4,426,061 3,489,726 2,800,000 2,205,000 2,851,145 97,870 100,000 50,000 63,581 376,433 360,000 260,000 262,694 791,256 750,000 750,000 852,858 133,519 129,000 129,000 159,003 694,603 600,000 600,000 671,888 304,975 325,000 325,000 256,952 4,086,536 4,165,000 4,165,000 4,290,417 47,664,927 45,530,600 40,115,600 43,286,631 16,575 4,000 4,000 13,975 146,914 120,000 147,000 279,878 410,762 345,000 345,000 371,294 3,475 500 500 1,195 146,528 150,000 150,000 444,444 74,983 55,000 55,000 98,478 86,146 75,000 75,000 92,896 56,202 50,000 50,000 77,005 197,580 150,000 150,000 174,893 9,580 11,000 11,000 6,020 160 200 200 450 13,790 7,000 11,000 26,718 7,314 4,000 4,000 1,687 20 500 500 0 53,496 50,000 50,000 73,338 37,518 30,000 30,000 56,535 2,078 2,000 2,000 2,142 9,346 13,000 13,000 21,640 2,875 2,800 2,800 2,789 14,385 18,000 18,000 19,695 56,125 54,000 54,000 24,948 5,817 12,100 12,100 11,709 0 3,300 3,300 0 10,087 8,000 8,000 5,052 183,768 150,000 150,000 96,908 0 0 0 7,967 1,545,524 1,315,400 1,346,400 1,911,656 15,000 0 0 0 0 0 10,669 0 7,071,162 7,127,700 7,127,700 7,057,071 0 975,900 975,900 0 165,583 455,000 0 4,500 3,000 3,000 22,668 7,256,245 8,561,600 7,079,738 36,712 45,000 45,000 19,432 12,078 6,000 6,000 6,668 41,782 45,000 45,000 23,138 950 6,000 6,000 705 43,217 35,000 35,000 27,972 17,685 20,000 20,000 12,865 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS EXHIBIT B 2019/20 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020. 2018/19 Actuals 2019/20 Original Budget 2019/20 Final Budget 2019/20 Actuals 54,183 55,000 55,000 33,689101-0000-42214 Wellness Center Leisure Enrichment 1,126 1,500 1,500 956101-0000-42216 Senior Center Special Events 137,300 150,000 150,000 104,144101-0000-42218 Wellness Center Memberships 111 0 0 4,968101-0000-42300 Cash Over/Short 405 200 200 275101-0000-42303 NSF Charges 0 5,000 5,000 0101-0000-42411 Village Use Permit 3,168 2,500 2,500 13,060101-0000-42412 Minor Adjustment, Plan Checks 5,036 15,000 15,000 40,600101-0000-42415 Tentative Tract Map 22,171 15,000 15,000 29,397101-0000-42416 Digitization/Records Management 960 1,500 1,500 3,920101-0000-42417 Modification by Applicant 685 0 0 0101-0000-42429 Appeal Bid Process 1,750 1,500 1,500 2,000101-0000-42440 Appeals - Permits, Licenses, Projects, Bids 20,518 8,500 8,500 10,707101-0000-42443 Zone Change 1,440 5,000 5,000 2,735101-0000-42445 Environmental Assessment 10,406 5,000 5,000 10,465101-0000-42446 General Plan Amendment 7,925 5,000 5,000 7,450101-0000-42447 Home Occupations 20,898 10,000 10,000 10,090101-0000-42448 Tenative Parcel Map 4,750 0 0 9,552101-0000-42451 Specific Plan 0 0 0 4,508101-0000-42460 Pre-Application Review 541,925 450,000 450,000 563,741101-0000-42600 Building Plan Check Fees 671 300 300 534101-0000-42610 SMIP Fees 1,066 300 300 492101-0000-42615 CBSC Administrative Fees 162,857 110,000 110,000 223,148101-0000-42810 Public Works Dev. Plan Check Fee 1,710 1,500 1,500 2,772101-0000-43631 CVMSHCP Admin Fee 340 - Charges for Services Totals:1,153,487 999,800 999,800 1,169,982 350 - Fines, Forfeitures & Abatements 39,456 14,000 14,000 81,952101-0000-42700 Administrative Citations 21,881 3,000 3,000 3,756101-0000-42701 Lot Abatement 36,301 15,000 15,000 41,931101-0000-42702 Vehicle Abatement 70,040 70,000 70,000 59,473101-0000-42703 Vehicle Impound Fee 133,042 105,000 105,000 113,721101-0000-42705 Motor Vehicle Code Fines 26,486 20,000 20,000 42,048101-0000-42706 Parking Violations 2,125 10,000 10,000 1,885101-0000-42707 Misc Fines 8,059 6,500 6,500 8,436101-0000-42708 Graffiti Removal 38,101 25,000 25,000 17,189101-0000-42709 False Alarm Fees - Police 8,817 8,000 8,000 5,322101-0000-42710 False Alarm Fees - Fire 350 - Fines, Forfeitures & Abatements Totals:384,308 276,500 276,500 375,713 360 - Use of Money & Property 2,295,827 300,000 800,000 1,252,458101-0000-41900 Allocated Interest 0 0 0 1,624,037101-0000-41910 GASB 31 Interest 213,946 110,000 0 0101-0000-41915 Non-Allocated Interest 396 0 0 0101-0000-42111 Rental Income 140,264 143,000 143,000 143,932101-0000-42120 Lease Revenue - Cell Towers 360 - Use of Money & Property Totals:2,650,433 553,000 943,000 3,020,427 370 - Miscellaneous 401,124 400,000 400,000 196,035101-0000-41410 Zoning Change Mitigation Fees 26,351 17,000 17,000 20,854101-0000-41504 AMR Compliance 108,495 110,000 110,000 55,892101-0000-41507 Burrtec Admin Cost Reimbursement 0 0 0 1,500101-0000-41920 Memorial Tree Revenue 60,315 0 11,000 42,865101-0000-42000 Insurance Recoveries 129 100 100 15101-0000-42140 Sales of Publications & Materials 18,135 25,000 25,000 11,116101-0000-42301 Miscellaneous Revenue 58,701 50,000 50,000 51,099101-0000-42305 Miscellaneous Reimbursements 8,776 8,000 8,000 5,175101-0000-43505 Credit Card Fee Revenue 1,383,750 200 200 136,491101-0000-45000 Sale of Other Assets 0 0 0 694,234101-0000-48500 Extraordinary Gain 370 - Miscellaneous Totals:2,065,775 610,300 621,300 1,215,277 54,183 55,000 55,000 33,689 1,126 1,500 1,500 956 137,300 150,000 150,000 104,144 111 0 0 4,968 405 200 200 275 0 5,000 5,000 0 3,168 2,500 2,500 13,060 5,036 15,000 15,000 40,600 22,171 15,000 15,000 29,397 960 1,500 1,500 3,920 685 0 0 0 1,750 1,500 1,500 2,000 20,518 8,500 8,500 10,707 1,440 5,000 5,000 2,735 10,406 5,000 5,000 10,465 7,925 5,000 5,000 7,450 20,898 10,000 10,000 10,090 4,750 0 0 9,552 0 0 0 4,508 541,925 450,000 450,000 563,741 671 300 300 534 1,066 300 300 492 162,857 110,000 110,000 223,148 1,710 1,500 1,500 2,772 1,153,487 999,800 999,800 1,169,982 39,456 14,000 14,000 81,952 21,881 3,000 3,000 3,756 36,301 15,000 15,000 41,931 70,040 70,000 70,000 59,473 133,042 105,000 105,000 113,721 26,486 20,000 20,000 42,048 2,125 10,000 10,000 1,885 8,059 6,500 6,500 8,436 38,101 25,000 25,000 17,189 8,817 8,000 8,000 5,322 384,308 276,500 276,500 375,713 2,295,827 300,000 800,000 1,252,458 0 0 0 1,624,037 213,946 110,000 0 0 396 0 0 0 140,264 143,000 143,000 143,932 2,650,433 553,000 943,000 3,020,427 401,124 400,000 400,000 196,035 26,351 17,000 17,000 20,854 108,495 110,000 110,000 55,892 0 0 0 1,500 60,315 0 11,000 42,865 129 100 100 15 18,135 25,000 25,000 11,116 58,701 50,000 50,000 51,099 8,776 8,000 8,000 5,175 1,383,750 200 200 136,491 0 0 0 694,234 2,065,775 610,300 621,300 1,215,277 **** ** * FY 2018/19 GASB 31 investment portofolio fair market value adjustment was $604,126 and included in the Allocated Interest account total. ** FY 2019/20 Non-Cash Transactions included the investment portfolio fair market value adjustment of $1,624,037 and the RDA loan repayment interest earned of $694,234. Both are explained in the 2019/20 Year-End Budget Report. CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS EXHIBIT B 2019/20 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020. 2018/19 Actuals 2019/20 Original Budget 2019/20 Final Budget 2019/20 Actuals 380 - Transfers In 556,329 0 0 29,809101-0000-49500 Transfers In 380 - Transfers In Totals:556,329 0 0 29,809 101 - GENERAL FUND Totals:63,277,029 57,847,200 58,089,234 556,329 0 0 29,809 556,329 0 0 29,809 63,277,029 57,847,200 52,928,830 58,089,234 Minus Non-Cash Transactions (604,126)(2,318,271) Adjusted Operating Revenues (62,672,903)(55,770,962) CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS EXHIBIT B 2019/20 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020. 2018/19 Actuals 2019/20 Original Budget 2019/20 Final Budget 2019/20 Actuals 1001 - City Council 277,235 308,700 294,700 250,144 Salaries and Benefits 236,827 272,800 272,800 233,237 Maintenance & Operations 40,409 35,900 21,900 16,907 1002 - City Manager 887,662 883,500 861,975 751,206 Salaries and Benefits 647,975 616,900 600,275 517,987 Contract Services 106,225 105,000 105,000 63,102 Maintenance & Operations 96,763 101,000 96,100 109,516 Internal Service Charges 36,700 60,600 60,600 60,600 1003 - City Attorney 509,738 505,000 565,000 550,548 Contract Services 509,738 505,000 565,000 550,548 1004 - Human Resources 528,995 617,200 537,000 521,077 Salaries and Benefits 324,867 367,400 361,900 422,160 Contract Services 80,540 96,500 46,500 16,908 Maintenance & Operations 100,289 112,000 87,300 40,710 Internal Service Charges 23,300 41,300 41,300 41,300 1005 - City Clerk 541,059 623,700 580,530 502,284 Salaries and Benefits 352,912 398,300 452,530 406,655 Contract Services 127,298 147,000 52,100 24,518 Maintenance & Operations 18,349 24,700 22,200 17,410 Internal Service Charges 42,500 53,700 53,700 53,700 1006 - Finance 1,055,104 1,253,200 1,256,400 1,194,343 Salaries and Benefits 791,787 910,100 956,000 930,571 Contract Services 133,813 200,000 161,300 125,424 Maintenance & Operations 37,503 35,200 31,200 30,448 Internal Service Charges 92,000 107,900 107,900 107,900 1007 - Central Services 36,101,167 12,981,900 30,288,318 17,071,668 Salaries and Benefits 7,420,590 1,453,000 4,587,095 4,494,831 Maintenance & Operations 197,420 223,200 223,200 103,397 Other Expenses 15,017,126 0 0 87,769 Capital Expenses 2,755,926 60,000 1,110,000 793,484 Internal Service Charges 680,700 667,100 667,100 667,100 Transfers Out 10,029,405 10,578,600 23,700,923 10,925,087 2001 - Police 15,656,713 16,866,100 16,396,100 16,278,322 Contract Services 15,590,110 16,753,000 16,253,000 16,130,014 Maintenance & Operations 16,132 12,500 12,500 18,904 Utilities 11,471 14,000 14,000 12,733 Capital Expenses 0 35,000 65,000 65,072 Internal Service Charges 39,000 51,600 51,600 51,600 2002 - Fire 6,677,844 7,663,600 8,254,300 6,804,305 Salaries and Benefits 72,335 194,000 194,000 189,319 Contract Services 6,244,079 7,019,700 7,019,700 6,346,342 Maintenance & Operations 89,149 149,700 205,400 98,793 Other Expenses 362 0 0 0 Utilities 62,670 83,000 83,000 62,858 Capital Expenses 139,649 135,000 170,000 16,010 Internal Service Charges 69,600 82,200 82,200 82,200 Transfers Out 0 0 500,000 8,782 3001 - Community Resources Administration 787,129 911,400 912,650 823,403 Salaries and Benefits 592,466 624,300 635,050 625,944 Contract Services 48,032 97,000 93,000 60,482 Maintenance & Operations 100,031 128,100 122,600 74,978 Internal Service Charges 46,600 62,000 62,000 62,000 3002 - Wellness Center Operations 560,154 796,400 725,720 670,974 Salaries and Benefits 371,164 565,600 561,920 525,609 277,235 308,700 294,700 250,144 236,827 272,800 272,800 233,237 40,409 35,900 21,900 16,907 887,662 883,500 861,975 751,206 647,975 616,900 600,275 517,987 106,225 105,000 105,000 63,102 96,763 101,000 96,100 109,516 36,700 60,600 60,600 60,600 509,738 505,000 565,000 550,548 509,738 505,000 565,000 550,548 528,995 617,200 537,000 521,077 324,867 367,400 361,900 422,160 80,540 96,500 46,500 16,908 100,289 112,000 87,300 40,710 23,300 41,300 41,300 41,300 541,059 623,700 580,530 502,284 352,912 398,300 452,530 406,655 127,298 147,000 52,100 24,518 18,349 24,700 22,200 17,410 42,500 53,700 53,700 53,700 1,055,104 1,253,200 1,256,400 1,194,343 791,787 910,100 956,000 930,571 133,813 200,000 161,300 125,424 37,503 35,200 31,200 30,448 92,000 107,900 107,900 107,900 36,101,167 12,981,900 30,288,318 17,071,668 7,420,590 1,453,000 4,587,095 4,494,831 197,420 223,200 223,200 103,397 15,017,126 0 0 87,769 2,755,926 60,000 1,110,000 793,484 680,700 667,100 667,100 667,100 10,029,405 10,578,600 23,700,923 10,925,087 15,656,713 16,866,100 16,396,100 16,278,322 15,590,110 16,753,000 16,253,000 16,130,014 16,132 12,500 12,500 18,904 11,471 14,000 14,000 12,733 0 35,000 65,000 65,072 39,000 51,600 51,600 51,600 6,677,844 7,663,600 8,254,300 6,804,305 72,335 194,000 194,000 189,319 6,244,079 7,019,700 7,019,700 6,346,342 89,149 149,700 205,400 98,793 362 0 0 0 62,670 83,000 83,000 62,858 139,649 135,000 170,000 16,010 69,600 82,200 82,200 82,200 0 0 500,000 8,782 787,129 911,400 912,650 823,403 592,466 624,300 635,050 625,944 48,032 97,000 93,000 60,482 100,031 128,100 122,600 74,978 46,600 62,000 62,000 62,000 560,154 796,400 725,720 670,974 371,164 565,600 561,920 525,609 * * Capital Expenses in FY 2018/19 includes $17,606,136 of non-cash transactions as detailed in the 2018/19 Year-End Budget Report. Capital Expenses in FY 2019/20 includes $327,338 of non-cash transactions as detailed in the 2019/20 Year-End Budget Report. CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT EXHIBIT C 2019/20 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020. * 2018/19 Actuals 2019/20 Original Budget 2019/20 Final Budget 2019/20 Actuals Contract Services 72,136 99,300 54,300 46,577 Maintenance & Operations 59,754 68,500 46,500 35,789 Internal Service Charges 57,100 63,000 63,000 63,000 3003 - Recreation Programs & Special Events 395,602 559,800 633,130 456,413 Salaries and Benefits 137,341 200,500 203,830 135,528 Maintenance & Operations 213,961 316,300 386,300 277,885 Internal Service Charges 44,300 43,000 43,000 43,000 3005 - Parks Maintenance 2,120,846 2,330,900 2,155,800 1,958,099 Salaries and Benefits 471,310 346,400 346,400 344,583 Contract Services 430,720 502,700 502,700 502,680 Maintenance & Operations 192,229 410,600 532,500 395,417 Utilities 277,287 296,500 336,500 277,719 Internal Service Charges 749,300 774,700 437,700 437,700 3007 - Marketing & Community Relations 1,194,173 1,301,600 1,338,469 1,052,957 Salaries and Benefits 140,609 231,400 231,400 231,383 Contract Services 241,288 297,000 331,369 228,232 Maintenance & Operations 800,577 745,600 748,100 565,741 Internal Service Charges 11,700 27,600 27,600 27,600 3008 - Public Buildings 1,849,202 1,109,900 1,142,200 1,069,132 Salaries and Benefits 459,367 417,200 418,300 375,193 Contract Services 145,600 152,000 152,000 150,704 Office Supplies 0 0 0 16 Maintenance & Operations 821,080 121,500 137,500 135,439 Utilities 151,753 141,000 156,200 129,580 Capital Expenses 1,702 0 0 0 Internal Service Charges 269,700 278,200 278,200 278,200 6001 - Design & Development Administration 981,828 986,300 952,300 869,367 Salaries and Benefits 711,701 761,500 736,500 652,125 Contract Services 83,990 44,000 44,000 50,178 Maintenance & Operations 21,937 25,400 16,400 11,664 Internal Service Charges 164,200 155,400 155,400 155,400 6002 - Planning 593,792 536,200 591,000 507,224 Salaries and Benefits 292,449 367,400 367,400 342,570 Contract Services 244,177 100,000 168,800 113,758 Maintenance & Operations 22,166 27,500 13,500 9,596 Internal Service Charges 35,000 41,300 41,300 41,300 6003 - Building 711,820 983,100 899,100 789,707 Salaries and Benefits 518,156 635,300 635,300 516,746 Contract Services 79,281 200,000 125,000 136,314 Maintenance & Operations 7,284 21,000 12,000 9,847 Internal Service Charges 107,100 126,800 126,800 126,800 6004 - Code Compliance/Animal Control 1,084,144 1,346,300 1,279,600 1,144,286 Salaries and Benefits 696,076 824,700 799,000 732,405 Contract Services 210,935 308,000 274,000 220,475 Maintenance & Operations 14,132 28,800 21,800 6,607 Internal Service Charges 163,000 184,800 184,800 184,800 6006 - The Hub 786,722 1,150,100 1,012,100 975,546 Salaries and Benefits 656,141 810,100 760,100 730,616 Contract Services 59,620 205,000 121,000 128,167 Maintenance & Operations 6,861 24,800 20,800 6,563 Internal Service Charges 64,100 110,200 110,200 110,200 7001 - Public Works Administration 0 0 0 13,288 Salaries and Benefits 0 0 0 13,288 7002 - Public Works Development Services 536,055 619,900 566,500 556,793 Salaries and Benefits 323,557 330,600 332,200 330,328 72,136 99,300 54,300 46,577 59,754 68,500 46,500 35,789 57,100 63,000 63,000 63,000 395,602 559,800 633,130 456,413 137,341 200,500 203,830 135,528 213,961 316,300 386,300 277,885 44,300 43,000 43,000 43,000 2,120,846 2,330,900 2,155,800 1,958,099 471,310 346,400 346,400 344,583 430,720 502,700 502,700 502,680 192,229 410,600 532,500 395,417 277,287 296,500 336,500 277,719 749,300 774,700 437,700 437,700 1,194,173 1,301,600 1,338,469 1,052,957 140,609 231,400 231,400 231,383 241,288 297,000 331,369 228,232 800,577 745,600 748,100 565,741 11,700 27,600 27,600 27,600 1,849,202 1,109,900 1,142,200 1,069,132 459,367 417,200 418,300 375,193 145,600 152,000 152,000 150,704 0 0 0 16 821,080 121,500 137,500 135,439 151,753 141,000 156,200 129,580 1,702 0 0 0 269,700 278,200 278,200 278,200 981,828 986,300 952,300 869,367 711,701 761,500 736,500 652,125 83,990 44,000 44,000 50,178 21,937 25,400 16,400 11,664 164,200 155,400 155,400 155,400 593,792 536,200 591,000 507,224 292,449 367,400 367,400 342,570 244,177 100,000 168,800 113,758 22,166 27,500 13,500 9,596 35,000 41,300 41,300 41,300 711,820 983,100 899,100 789,707 518,156 635,300 635,300 516,746 79,281 200,000 125,000 136,314 7,284 21,000 12,000 9,847 107,100 126,800 126,800 126,800 1,084,144 1,346,300 1,279,600 1,144,286 696,076 824,700 799,000 732,405 210,935 308,000 274,000 220,475 14,132 28,800 21,800 6,607 163,000 184,800 184,800 184,800 786,722 1,150,100 1,012,100 975,546 656,141 810,100 760,100 730,616 59,620 205,000 121,000 128,167 6,861 24,800 20,800 6,563 64,100 110,200 110,200 110,200 0 0 0 13,288 0 0 0 13,288 536,055 619,900 566,500 556,793 323,557 330,600 332,200 330,328 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT EXHIBIT C 2019/20 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020. 2018/19 Actuals 2019/20 Original Budget 2019/20 Final Budget 2019/20 Actuals Contract Services 143,296 210,000 160,000 154,430 Maintenance & Operations 1,602 8,500 3,500 1,235 Internal Service Charges 67,600 70,800 70,800 70,800 7003 - Streets 21,794 74,500 72,000 123,180 Salaries and Benefits 0 0 0 8,655 Contract Services 0 200 200 0 Maintenance & Operations 21,794 19,300 16,800 17,490 Capital Expenses 0 55,000 97,035 7006 - Engineering Services 938,487 1,229,200 1,168,884 Salaries and Benefits 536,891 759,800 728,300 674,816 Contract Services 312,483 355,000 356,965 388,478 Maintenance & Operations 7,613 18,000 17,200 9,190 Internal Service Charges 81,500 96,400 96,400 96,400 GENERAL FUND EXPENSES 74,797,265 55,638,500 56,103,152 143,296 210,000 160,000 154,430 1,602 8,500 3,500 1,235 67,600 70,800 70,800 70,800 21,794 74,500 72,000 123,180 0 0 0 8,655 0 200 200 0 21,794 19,300 16,800 17,490 0 55,000 108,961 97,035 938,487 1,229,200 1,252,826 1,168,884 536,891 759,800 728,300 674,816 312,483 355,000 356,965 388,478 7,613 18,000 17,200 9,190 81,500 96,400 96,400 96,400 74,797,265 55,638,500 72,567,718 56,103,152 Minus Non-Cash Transactions (17,606,136) (327,338) Adjusted Operating Expenses 57,191,129 55,775,814 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT EXHIBIT C 2019/20 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020. Project #Project Name Fire Reserves General Fund Measure G TOTAL 91004 Dune Palms Road Improvements 45,947$ - 45,946.73$ 111205 Dune Palms Bridge Improvements (82,038) - (82,038) 151603 La Quinta Village Complete Streets - (818,547) (818,547) 151609 La Quinta X-Park - 860,000 860,000 151612 Citywide Drainage Enhancements 506,841 971,770 1,478,611 1920PMP Pavement Management 450,993 - 450,993 1920STI Sidewalk Improvements 32,604 - 32,604 201601 HSIP Intersection Improvements 19,902 - 19,902 201602 Traffic Signal Interconnect (264,471) - (264,471) 201603 Landscape Renovations 131,782 6,041,120 6,172,902 201606 Civic Center Campus Lake 524,418 - 524,418 201608 SilverRock Event Space - 502,230 502,230 201704 Eisenhower Retention Basin - 678,309 678,309 201709 Ave. 53/Jefferson Roundabout 630,650 - 630,650 201801 Cove Public Restroom 97,395 - 97,395 201805 Corporate Yard Admin. Offices - 355,240 355,240 201901 Village Art Plaza Promenade - 309,505 309,505 201905 Highway 111 Corridor - 993,014 993,014 201907 Fire Station 70 Revitalization 490,723 - - - 201908 Citywide Catch Basin Modifications 250,000 - 250,000 201909 Citywide ADA Improvements 26,176 - 26,176 201910 PMP Slurry Seal Improvements 223,325 - 223,325 201923 Washington St. at Ave. 50 95,523 - 95,523 SAVINGS Prior CIP Project Savings 47,747 - 47,747 999902 Jefferson Interchange 34,987 - 34,987 - TOTAL 490,723$ 2,771,781$ 9,892,641$ 13,155,144$ 4%21%75%100% (Negative balances represent temporary funding until grants are received.) GENERAL FUND Capital Improvement Project Carryovers from 2019/20 to 2020/21 EXHIBIT D EXHIBIT E AMENDED CARRYOVERS Estimated carryovers from the 2019/20 to 2020/21 budget were estimated based on projected invoices in the Spring of 2020. Upon completion of the final audit in October, Finance verifies account balances and carryovers. Amended carryovers will be added to the 2020/21 budget. Vendor/Program Account Number Description Estimated Revised IID Assessment, Economic Development 101-1002-60101 Contract Services -$ 50,000$ Human Resources Initiatives 101-1004-60103 Professional Services -$ 10,000$ Fee Study, Disclosure Filing State Mandate 101-1005-60103 Professional Services -$ 25,700$ Audits, Internal Controls, Policy Updates 101-1006-60103 Professional Services -$ 30,000$ Operational Flexibility 101-1007-50115 Contingency for Staffing -$ 400,000$ TOT Resort Rebate Program 101-1007-60536 Future Reimbursements 100,000$ 100,000$ Buildings 101-1007-71050 Alongi Building 437,600$ 636,800$ Tri-City Police Contract Study 101-2001-60103 Professional Services -$ 30,000$ Machinery & Equipment, Fire Services 101-2002-71031 Vehicle Purchase 30,000$ 30,000$ Building Improvements, Fire Station 101-2002-72110 Fire Station #70 35,000$ 35,000$ Fire Station Generators 101-2002-80101 Machinery & Equipment -$ 54,000$ Wellness West & Old Town Artisan Studio 101-3001-60510 Grants & Economic Development -$ 30,000$ Wellness Center Outdoor Programs 101-3002-60108 Instructors -$ 10,000$ Wellness Center COVID Supplies 101-3002-60420 Operating Supplies -$ 5,000$ Programming, COVID Supplies 101-3003-60149 Community Experiences -$ 40,000$ Parks, Landscape Improvements 101-3005-60431 Materials/Supplies -$ 25,000$ Parks, Fence & Lighting Improvements 101-3005-60691 Maintenance/Services -$ 34,000$ Advertising, Photography, COVID 101-3007-60461 Marketing & Tourism Promotions -$ 90,000$ Planning, Professional Services 101-6002-60103 Environmental Project Reviews -$ 55,000$ Building 101-6003-60118 Plan Checks -$ 10,000$ Code Compliance 101-6004-60103 Professional Services -$ 50,000$ Short-Term Vacation Rental Programs 101-6006-60103 Professional Services -$ 25,000$ Engineering Services 101-7006-60427 Safety Gear -$ 2,000$ Engineering Services 101-7006-60690 Uniforms -$ 1,300$ 602,600 1,778,800 Gas Tax Fund 201-7003-72111 Road Improvements - 82,000$ Library Fund Building Improvements 202-3004-72110 Roof Repairs 280,000 280,000$ Lighting & Landscape District Improvements 215-7004-60431 Materials and Supplies 100,000 250,000$ Economic Development Fund 247-0000-60510 Small Bus. Emer. Relief Program 1,000,000 951,400$ Facility and Fleet Replacement Fund 501-0000-71003 Asset Management Software - 150,000$ Information Technology Fund 502-0000-60108 Technical, Fiber Back Up - 30,000$ Information Technology Fund 502-0000-60301 Software, Cyber Security, Website Updates - 100,000$ Information Technology Fund 502-0000-71042 D & D Software Enhancements - 30,000$ Information Technology Fund 502-0000-80100 Machinery & Equipment, Council Chambers - 80,000$ 1,380,000 1,953,400 Housing Authority Fund 241-9101-60103 Professional Services, Housing Element Update - 42,700$ $ 1,982,600 $ 3,774,900 Revised Continuing Appropriations/Carryovers from 2019/20 to 2020/21 GENERAL FUND CARRYOVERS SPECIAL FUNDS CARRYOVERS TOTAL CARRYOVERS FOR ALL FUNDS NOTE: In June 2020 when the budget was adopted all carryovers were estimates based on projected invoices to end fiscal year 2019/20. Upon completion of the final audit (October 2020), Finance verified account balances and additional carryover recommendations based on current budgetary needs and constraints due to COVID. In no event shall a carryover exceed the revised per account amount noted above. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 4, 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. 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 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. ALTERNATIVES The FAC may request additional information before filing this Report. Prepared by: Karla Romero, Finance Director Attachment: 1. Annual Measure G Sales Tax Oversight Report for Fiscal Year Ended June 30, 2020 BUSINESS SESSION ITEM NO. 2 ANNUAL 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. ATTACHMENT 1 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. 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 - 1,462,650 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 2,216,300 9,967,657 Measure G Reserves 17/18 (SilverRock Event Site)321,900 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 10,958,118 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 10,310,526 2020/21 Public Safety Contract Services 4,545,000 X-Park Landscaping 275,000 Highway 111 Corridor Improvements 250,000 3,127,200 8,197,200 TOTAL 10,545,000$ 18,487,732$ 11,863,419$ 40,896,151$ 26%45%29% MEASURE G REVENUES AND USES SUMMARY 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 2020/21, $321,900 of Measure G reserves was allocated from FY 2017/18 reserves to the SilverRock Event Site. EXHIBIT A City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 4, 2020 STAFF REPORT AGENDA TITLE: RECOMMEND APPROPRIATION OF ADDITIONAL MEASURE G FUNDING FOR THE SILVERROCK PARK VENUE PROJECT NO. 2016-08 AND ALONGI BUILDING PROJECT; AND DISCUSS PROPOSED PHASE II IMPROVEMENTS FOR THE SILVERROCK PARK VENUE PROJECT RECOMMENDATION Recommend appropriation of additional Measure G funding in the amount of $244,700 for the SilverRock Park Venue Project No. 2016-08 and $160,000 for the Alongi Building Project, for additional project improvements and unanticipated costs. EXECUTIVE SUMMARY •In February 2018, Council appointed an Ad Hoc Committee to develop a Master Plan for the SilverRock Venue Site. In August 2018, Council subsequently approved the Master Plan and Site Development Permit (Attachment 1). •The park site sits on approximately 14 acres and will include a parking lot; and approximately eight (8) acres of walking paths, turf, and landscaping. The site will also include a meandering stream with lake and stage area. There will be at minimum one (1) restroom building with the potential for one (1) additional stand-alone restroom building, one (1) storage building, and a space for a 3,050 square foot building with utility hook-up. Additionally, the site includes pads for future art installations. •On August 6, 2019, a contract was awarded to Urban Habitat (Contractor) for the construction of the La Quinta SilverRock Park Venue Project (Project) and construction began in September 2019. •In May 2020 additional funding in the amount of $321,900 was appropriated to repair rain damaged retention basin slopes and outlet structure. •Additional Measure G funding in the amount of $244,700 is needed for unanticipated costs and additional improvements for the SilverRock Park Venue Site Project and $160,000 for the Alongi Building Project. BUSINESS SESSION ITEM NO. 3 • Phase II of the Project is proposed to include additional site amenities and improvements. FISCAL IMPACT Additional Measure G Funding is requested in the amount of $244,700 to complete the SilverRock Park Venue Project. The following table shows the projects budgeted revenue sources and proposed requested funding: Current Budget Proposed Budget Arts in Public Spaces $ 300,000 $ 300,000 Measure G Funding $ 1,621,900 $ 1,866,600 Park & Rec DIF Fund $ 2,400,000 $ 2,400,000 Quimby Funding $ 2,000,000 $ 2,000,000 Total Budget: $ 6,321,900 $ 6,566,600 The following is the breakdown of additional costs needed to complete the current project: Total Budget Amphitheater Landscape Change $ 23,500 Additional Geotechnical Soils Grading Headwall Costs, Additional Slope Repair due to Drainage Water, and additional RCP Replacement $ 60,000 Electric/water delays $ 125,000 Low voltage lighting new service and pedestal - color changing lights $ 13,000 Erosion scar repairs $ 6,000 Install Concrete Crossing over Existing Drain $ 3,300 Overseeding $ 5,150 Soil stabilization on the head wall $ 8,000 Additional Core in Retaining Wall Footing at Stage $ 750 Total: $ 244,700 There is approximately $64,000 in contingency available in the project budget. It is anticipated that this would be used to cover any other additional miscellaneous change orders including the final quantity adjustment. Additional Measure G Funding is also requested in the amount of $160,000 to complete the Alongi Building Project. The following is the current and proposed Alongi Project budget: Current Budget Proposed Budget Design $ 46,955 $ 46,955 Foundation and Utility Construction $ 98,161 $ 98,161 Building Purchase $ 400,000 $ 400,000 Building Modifications 1-21-2020 $ 470,000 $ 470,000 Building Modifications 6-17-2020 $ 11,760 $ 11,760 Landscape, Irrigation and Electrical $ 0 $ 331,058 Contingency $ 173,124 $ 2,066 Total $ 1,200,000 $ 1,360,000 Anticipated costs for prioritized Phase II improvements are included in Attachment 3 for discussion and funding consideration. BACKGROUND/ANALYSIS City Council established an Ad Hoc Committee in February 2018, with the desire to create an event space that could accommodate events larger than the Civic Center Campus, the. The Committee consisted of a Council Member, a Community Services Commissioner, Planning Commissioner, and representatives from Montage International and SilverRock Development Company. The Committee then worked with Hermann Design Group and Staff to create a site plan, budget, and construction timeline for the event site. The Committee prepared a master plan for approximately 14-acres of park space with walking paths, turf areas, sloped event lawn, a water feature, public art, a restroom building, and a modular building (Alongi). The proposed Master Plan was presented to the Financial Advisory Commission (FAC) on June 13, 2018. The FAC then submitted a letter to City Council requesting consideration for additional park amenities that include restrooms, storage facilities, shade structures, and additional shade trees. The Planning Commission held a public hearing for the Venue Site Master Plan site development permit on June 26, 2018. The Planning Commission recommended City Council approval and consideration of the FAC’s request for additional park amenities. The Master Plan was then presented to the Community Services Commission who also supported the Planning Commission and the FACs’ recommendations. On August 7, 2018, City Council approved the SilverRock Park Venue Site Master Plan and site development permit. Council provided direction to revise the Master Plan to incorporate the recommendations provided in the letter from the FAC. The revised Master Plan included one restroom facility and additional shade trees. On August 6, 2019, a contract was awarded to Urban Habitat for the construction of the Project and construction began in September 2019. During the bid and award of the Project, a rain event occurred that eroded one of the retention basin slopes and damaged an outlet structure that was planned to be replaced. This damage was made worse by subsequent rain events. In May 2020 additional fiscal year 2020/21 Measure G funding, in the amount of $321,900, was appropriated by Council for the necessary change orders. Additional funding for the project is needed due to unanticipated costs, as a result, in large part, to the extent of delay and additional days added to the contract. As staff was reconciling the project to prepare to close the budget it was revealed that the office overhead carried by the Contractor was not included in the various change orders since it was unknown how much delay there would ultimately be. The project is still currently in delay since power has not been completed yet by the Imperial Irrigation District. Other delays were caused by the need for compliance with Labor Union Contracts, and efforts to coordinate bringing the Alongi building on site with as few interruptions as possible. Along with project delay, a large CVWD usage fee and increased restroom installation costs, due to the project Labor Union Agreement, nearly depleted the existing budget’s contingency. The Alongi Building Project requires additional funding for landscaping, irrigation and electrical improvements. The cost for these improvements is $331,058. Utilizing the project’s contingency of $173,124, approximately $160,000 in additional funding is needed to complete these improvements. Phase II of the SilverRock Park Venue Project includes the following proposed additional amenities: • Additional restroom • Storage building • Shade structures • Irrigation conversion from well to potable water • Landscaping and Irrigation of surrounding slopes • Landscaping and Irrigation of adjacent retention basin slope • Mitigation measures for adjacent retention basin bottom • Adding 50 additional trees for shade in park • Adding concrete curb between the parking lot and overflow parking lot • Replacing DG Parking Lot with Permeable Pavers • Shade Cover over Stage Staff has assessed the Phase II improvements based upon a prioritization criterion, identifying high, medium and lower priority items. The high priority items either have a safety impact or are easily constructed by the current contractor resulting in potential construction cost savings. The total cost of the items identified as high priority Phase II items is $1,384,600. Total costs identified are inclusive of soft costs. The medium priority items are important improvements to the park, but may need additional time to design or for manufacturing, and construction by the current contractor at this time would not be most cost-effective option. The total cost of the items identified as medium priority are $1,203,762. The medium and lower priority items could be identified in the Capital Improvement Program as future projects. The lower priority items are improvements that do not have a safety impact and could be assessed after the park is in use, to determine if there is a future need. The total cost of the items identified as lower priority are $3,209,138. The total Phase II improvement cost for all priorities is estimated to be $5,797,500. Prepared by: Julie Mignogna, Management Analyst Approved by: Karla Romero, Finance Director Attachments: 1. Project Vicinity Map 2. Approved Change Orders 3. Phase II Prioritization Cost Breakdown 131 2016-08 SilverRock Event Park Project APPROVED CHANGE ORDERS Original Contract $ 4,218,880.00 Change Order Improvements Description Change Order No. 1 $ 5,629.99 Repair of retention basin road Change Order No. 2 $ 8,758.75 Allowed for an 18” line repair Change Order No. 3 $ 42,996.50 Installation of IID conduit not called out on the plan and potholing for the existing 15” irrigation line Change Order No. 4 $ 35,195.04 Installation of drainpipe for the amphitheater walls and additional parking lot drain Change Order No. 5 $ 209,855.77 Installation of the restroom building, a new electrical subcontractor, and replacing sod with stolon Change Order No. 6 $ 321,900.00 Repair retention basin slope and outlet structure, irrigation conduit repair, additional potholing, incurred costs for additional potholing, incurred costs to make modifications to stage area, incurred costs to place temporary protection measures, and to replace a proposed gravel pave surface with grass Change Order No. 7 $ 3,563.06 Allowed for a subcontractor to sawcut terrace walls Change Order No. 8 $ (14,694.89) Removed butterfly garden from scope of work and replaced with sod Change Order No. 9 $ 98,160.57 Alongi Building Pad and Utility Adjustment Change Order No. 10 $ 30,344.92 Utility Adjustment, installation of an overflow for lake system and Over Excavation for restroom Change Order No. 11 $ 60,601.87 Restroom sewer realignment, second pump, restroom circuit panel, and credit for replacing stolons with hydroseed Change Order No. 12 $ 44,120.00 Hydroseeding of overflow parking lot and a credit for shrub removal TOTAL $ 5,065,311.58 ATTACHMENT 2 SILVERROCK EVENT PARK - PHASE II PRIORITIES TOTAL PHASE II (ALL PRIORITIES) Cost Total Phase II Construction Total: $3,976,500 Total Phase II Soft Costs: $1,821,000 TOTAL: $5,797,500 HIGH PRIORITY ITEMS Cost Shade Structures (3x500sf) $ 135,000 Stabilization, Landscaping and Irrigation of adjacent retention basin slope $ 779,600 Adding 50 additional trees for shade in park $ 25,000 4 ft. safety fencing around top of retention basin outlet structure (structure is 11 ft. outlet for basin) $ 10,000 High Priority Construction Total: $ 949,600 High Priority Soft Costs Total: $ 435,000 TOTAL: $ 1,384,600 MEDIUM PRIORITY ITEMS Cost *Convert Irrigation from well and potable water source to canal water $ 164,000 Storage Building $ 140,062 Landscaping and Irrigation of surrounding slopes $ 275,000 Mitigation measures for adjacent retention basin bottom $ 246,700 Medium Priority Construction Total: $ 825,762 Medium Priority Soft Costs Total: $ 378,000 TOTAL: $ 1,203,762 *High priority, but design is required and creates time constraints that shifts to medium priority LOWER PRIORITY ITEMS Cost Additional Restroom $ 234,138 Adding concrete curb between the parking lot and overflow parking lot $ 17,000 Replacing DG Parking Lot with Permeable Pavers $ 1,600,000 Shade Cover over Stage $ 350,000 Lower Priority Construction Total: $ 2,201,138 Lower Priority Soft Costs Total: $ 1,008,000 TOTAL: $ 3,209,138 ATTACHMENT 3 ATTACHMENT 3 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 4, 2020 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2020/21 FIRST QUARTER BUDGET REPORT RECOMMENDATION Receive and file fiscal year 2020/21 First Quarter Budget Report. EXECUTIVE SUMMARY •The Fiscal Year (FY) 2020/21 First Quarter Budget Report (Attachment 1) provides an update of the City’s fiscal activities from July to September 2020. •Quarterly, a budget report is prepared to assess the adopted budget and incorporate adjustments based on current economic conditions and operational requirements. FISCAL IMPACT - None BACKGROUND/ANALYSIS Throughout the fiscal year each Department monitors their budget and proposes adjustments to reflect current conditions and ongoing operational needs. Requests are reviewed and discussed before recommending approval. This Report does not include budget adjustments. Recommended expense adjustments have been incorporated in the Fiscal Year 2019/20 Year-End Budget Report. ALTERNTIVES The Commission may request additional information before approving the Report. Prepared by: Karla Romero, Finance Director Approved by: Jon McMillen, City Manager Attachment: 1. Fiscal Year 2020/21 First Quarter Budget Report BUSINESS SESSION ITEM NO. 4 Fiscal Year 2020/21 First Quarter Budget Report The 2020/21 General Fund Budget was adopted on June 16, 2020 with a budget surplus of $9,200, and as a living document the budget allows for flexibility to accommodate business needs. Quarterly budget reports are presented to provide ongoing oversight of public funds, relate current and upcoming activities, and request funding adjustments. Due to ongoing economic volatility, this FY 2020/21 First Quarter Budget Report (Report) focused on the General Fund does not recommended any adjustments. The outlook for economic activity is largely dependent on the course of the pandemic and to some degree election results, the amount of additional fiscal relief from the government, and the timeline for a vaccine. All variables are outside of the City’s control, therefore, Staff believes the best approach is to continue to monitor the economic environment and business trends before recommending any possible changes. REVENUES Two of the City’s top three revenues sources, (sales and transient occupancy taxes) have thus far been performing better than anticipated during the first quarter of the fiscal year. Property taxes, the third revenue source is anticipated to be within budget by year-end. However, with large events being cancelled in the Spring of 2021 and a temporary closure of the La Quinta Resort, this past summer, it is too soon to tell if adjustments will be needed. Revenue adjustments at Mid-Year may be limited to unanticipated revenues received, such as CARES Act funds. EXPENSES As noted in the FY 2019/20 General Fund Year-End Budget Report, increased carryovers from expense savings were recommended because of the continued volatility in reopening the economy, which impacts City operations. In addition, those carryovers allow for operational flexibility, recognize updated Federal guidelines which disallow many previously allowed COVID- related reimbursable expenses, and account for amended operational needs such as the implementation of best-practice recommendations from the Short- Term Vacation Rental Committee (Committee). With these carryovers approved, Staff does not anticipate any further amendments to expenses during FY 2020/21; unless there are major operational changes implemented from Committee recommendations or unanticipated unfunded State mandates due to the ongoing pandemic. ATTACHMENT 1 Staff will continue to monitor current economic impacts, local business restrictions, larger local events, the tourism market, and current operating expenses. These economic conditions will determine if revenue or expense adjustments are warranted during the FY 2020/21 Mid-Year Budget Report which will be presented in February 2021. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 4, 2020 STAFF REPORT AGENDA TITLE: DISCUSS AND APPROVE THE POLICE SERVICES REVIEW COMMITTEE RECOMMENDATIONS FOR POLICE SERVICES RECOMMENDATION Discuss and approve the Police Services Review Committee Recommendations for Police Services. EXECUTIVE SUMMARY •The City of La Quinta (City) contracts with the Riverside County Sheriff’s Department (Department) for police services and has seen costs consistently increasing. •Since 2015, the City has utilized Matrix Consulting Group (Matrix) to conduct annual police services reviews with the purpose of identifying efficiencies and cost- saving measures. •The Sheriff’s Department has a new Research and Development (R&D) team created to also identify cost-saving measures within the Sheriff’s Department as well as for contract cities. •Two Financial Advisory Commissioners were appointed in June to serve on a Police Services Review Committee (Committee) to review current services, the Matrix study, and proposed the R&D initiatives. •Recommendations will also be presented to the City Council on November 17, 2020. BACKGROUND/ANALYSIS The City contracts with the Riverside County Sheriff’s Department (Department) to provide police services. The costs associated with this contract have continued to escalate in an unsustainable manner over the years, and the City is seeking ways to reduce costs while maintaining the safety of our community. Since 2015, the City has utilized Matrix to conduct annual police services reviews with the purpose of increasing efficiencies and identifying cost-saving measures. BUSINESS SESSION ITEM NO. 5 Matrix has been recommending a reduction in patrol hours as one way that the City could reduce costs. Additionally, the Sheriff has created a Research and Development team in order to study how the Department can increase efficiencies, utilize technologies, or otherwise fin d way s to reduce the cost increases that ultimately get passed on to contract cities. Representatives from this team presented their cost-saving proposals to City Council on June 2, 2020, howev er the hybrid models discussed have not yet been tested by any other agency or within the Department. Council requested that staff work with the Financial Advisory Commission (FAC) to create a Committee to evaluate the Sheriff’s R&D Model, analyze Matrix reports, evaluate service delivery options (including reallocations), and conduct a comprehensive review of police services. Two FAC Commissioners, Rosen and Batavick, were selected to serve on the Police Services Review Committee during a meeting of the FAC on June 3, 2020. The Committee also consisted of the Community Resources Director, Public Safety Manager, Financial Services Analyst, and Police Captain Misty Reynolds and Lieutenant Jeff Buompensiero. Multiple Committee meetings were held as noted below: 1.June 17: Introduction to staffing models presented by Riverside County Sheriff’s Department Research & Development (R&D), Thermal Staff, Matrix, and city staff. 2.July 1: Review of Police costs 3.July 15: Review of duties performed by Deputies and Community Service Officers 4.July 30: Review of R&D Hybrid Model 5.August 13: Review Staffing Options and formulate a recommendation for City Council. 6.October 21: Three individual Council debriefing meetings held with no more than two members to discuss recommendations. Additionally, the two Commissioners participated in a ride-along with Sheriff’s Deputies in order to better understand the services provide by our police officers. The FAC Commissioners involved with the Committee developed a comprehensive list of proposed actions for both the Sheriff’s Department and the City (Attachment 1). The items recommended for immediate action are as follows: •The committee supports reducing patrol hours to 130 hours per day and reallocating Community Service Officers to supplement patrol hours •Increase utilization of Community Service Officers and gradually evaluate if R&D model can work •Proceed with the Public Safety Camera System •Continue to explore economies of scale by consolidating a regional police contract with the cities of Indian Wells and Palm Desert ALTERNATIVES The FAC could choose to approve the recommendations as presented, modify and approve the Committee’s recommendations, or not support the recommendations. Prepared by: Rosemary Hallick, Financial Services Analyst Reviewed by: Karla Romero, Finance Director Attachment 1: City of La Quinta Committee Review of Police Services Expenses, Preliminary Recommendations from FAC Ad-Hoc Committee City of La Quinta Committee Review of Police Services Expenses Preliminary Recommendations from FAC Ad-Hoc Committee Below please find the recommendations developed after multiple meetings with City staff and representatives of the Sheriff’s Department. The points are divided into two categories, those which are substantially the responsibility of, or actionable by, the County and those of/by the City. Riverside County Sheriff’s Department: 1) Notwithstanding external factors such as labor negotiations that factor into the accuracy of longer-range planning, it would be helpful if the County afforded Cities the opportunity to sign multi-year contracts (3 to 5 years), in order to facilitate budgeting for public safety expenses. The earlier contracting agencies are provided with potential cost increases, the better for planning. 2)Continue to monitor and control all County and local police expenses to reduce, flatten or markedly reduce the rate of increase in these expenses. We recognize that a substantial portion of increasing expenses are tied to the unfunded pension and retiree healthcare expense benefits and encourage the county to work with the CalPERS staff and Board, as well as State representatives, on potential long-term solutions. 3)Review all activities and related expenses associated with police support locations (for example the Thermal station, call center, or other facility expenses). Determine the necessity and effectiveness of these activities and related expenses, identifying efficiencies that could be realized. Review all allocations of these expenses to cities and the related allocation methodologies to determine the fairness of these allocations. 4)Review the nature of public emergency and non-emergency service calls to determine if any of these calls (for example alarm events, minor traffic accidents, etc.) may be recommended for elimination or be exclusively assigned to community service officers. 5) Review all policing tasks performed by deputies and support staff to properly align job duties with required skills. Explore the ability to reduce the time spent by deputies (on average, about 40% of their total hours) on administrative tasks thru greater use of technology. 6)Ensure data collection systems for tracking key information (for example community service officer time, time spent by deputies on calls, etc.) are properly collecting this ATTACHMENT 1 data. It is difficult to make staffing decisions without accurate data regarding time utilization. City of La Quinta: 1) Develop a hybrid model for City policing which incorporates the best of our current arrangement (contract deputies @ 135 hours per day, 2 community services officers, etc.) with ideas and suggestions from the Sheriff’s R&D Workload Based Model. This R&D model includes a greater use of community services officers and the use of dedicated deputies. 2) The committee recognizes the challenges with raising revenues, but it is important to continue to monitor the 10-year projection of the City’s Annual Budget, including expected increases in police services expenses, in order to assess the need for new revenue streams. In coordination with the Financial Advisory Commission, consider a proposition to raise taxes, such as transient occupancy taxes, or introduce a new tax, such as a parcel tax, to exclusively cover increasing police expenses. An option would be to consider raising Measure G tax rate so more of these revenues are used for police services. This would free up more tax revenue for our CIP 3) Continue to explore police expense reduction opportunities thru economies of scale by potentially consolidating our policing contract with the policing contracts of neighboring cities Indian Wells and Palm Desert. 4) Incorporate into the hybrid model any impact our new city-wide camera system will have on the delivery of police services. 5) Continue to maintain a reliable set of metrics (for example, percent of General Fund Revenues spent on police services, per capita police expenses, crime occurrences, etc.), possibly in cooperation with other Coachella Valley cities (or other cities whose size and socio-economic characteristics are similar to the City of La Quinta), to measure comparability and identify outlying metrics. 6) Follow the City of Coachella efforts to study the transition of their police services from the Sheriff’s Department to a City Department. Consider gathering additional information from the cities of Palm Springs, Cathedral City and Indio, all who have City Police Departments. These efforts will help determine the potential consideration by our City to study the feasibility of transitioning to our own police department. Although upon initial review by this committee a City Police Department does not seem to be an option that would result in savings (and could actually increase costs), this should be continually monitored. 7) Monitor recommendations by the Sheriff’s R&D department; request metrics from staffing model tests such as the dedicated patrol officers, to determine effectiveness before any possible implementation here. 8) Monitor calls for service, increases in population, and crime rates to assess impact of any staffing changes. 9) Continue the work with the Financial Advisory Commission subcommittee to continually monitor police services and their associated costs. 10) Determine if there are any City policies and procedures that should be revised to better align with policing objectives. The committee supports reducing patrol hours to 130/day and increasing utilization of Community Service Officers. We acknowledge the fine work of all the officers and support staff of the Sheriff’s Department. We appreciate the amount of time Captain Reynolds and other members of the Sheriff’s Department spent with our committee and look forward to continued productive dialogue with the Department. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Financial Advisory Commissioners FROM: Karla Romero, Finance Director DATE: November 4, 2020 SUBJECT: FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Since the last Financial Advisory Commission (FAC) meeting on September 30, 2020, the Finance Department has completed the following projects: • The proposed 2021 Successor Agency (SA) Bond Refinance was reviewed and approved by the SA Board. • Staff has submitted the 2021 Bond Refinance staff report to the County of Riverside Oversight Board for the upcoming meeting on November 5, 2020. • A Request for Proposals for Actuarial Consulting and Technology Services was issued, and the City received and reviewed responses. A selection is anticipated by mid-November. • A second CARES Act Report was submitted to the State Department of Finance on October 12, 2020. The report indicates the City has fully spent the allocation of $502,034. • The Police Services Ad-hoc Committee has concluded their current analysis and prepared recommendations. A full report will be presented to City Council on November 17, 2020. • The City has opened a third Small Business Emergency Economic Relief Program administered by the City Manager’s Office and Finance. • The comprehensive fiscal year 2019/20 audit was completed with nearly 600 samples requested for review over a three-week timeframe. • The Single Audit for federal funds for fiscal year 2019/20 was completed with nearly 200 samples requested for review. • The Trust Custody account with Bank of New York Mellon is fully executed, opened, and operating. • Completed a comprehensive review of the Centre Pointe Transient Occupancy Tax (TOT) mitigation fee, summarized findings, prepared recommendations, and reinitiated discussions with the HOA on possible future amendments. DEPARTMENTAL REPORT ITEM NO. 1 During the September meeting, the Finance Department reported gaining a new employee, Daniele. However, October 9, 2020 was the final day of employment for our Accounts Payable Technician. Since then, AP duties have been redistributed among finance staff to ensure critical processes are completed and internal controls are maintained. A recruitment is underway and we are optimistic to have a new member by the end of November. To end calendar year 2020, the Finance Department will be completing the following items: • The outstanding Interfund Library Loan will be evaluated, and a recommendation prepared for review by the FAC and City Council. • Reviewing fiscal impacts associated with Short-Term Vacation Rental Committee (Committee) recommendations and prepare a report for the Committee, FAC and City Council. • Complete Annual Development Project Fee Reports for all Development Impact Fee Funds and the Art in Public Place Fund. Submit reports to required external agencies and present report to City Council. • Monitoring progress on the Highway 111 Corridor Improvements. A tentative joint Planning Commission and City Council meeting is scheduled for November 10, 2020. • Updating the ten-year financial projections for the City of La Quinta. • Upon approval of the 2021 Bond refinancing by the County Oversight Board, Staff will submit the request to the State Department of Finance and begin the 100-day review and approval process. • In conjunction with the 2021 Bond Financing Team, Staff will prepare a comprehensive financial presentation focused on La Quinta’s Redevelopment Project Areas No. 1 and 2. The presentation will be presented to S&P Gobal Ratings, formerly known as Standard and Poor’s, for an updated credit rating. • Completing the Annual Street and Road Improvement Audit and filing the required report to the State Controller’s Office. • Completing the Annual Measure A Local Streets and Roads Audit and filing the required report with the Riverside County Transportation Commission. • Publishing the 2019/20 Comprehensive Annual Financial Report. It is important to note the items mentioned in this update are in addition to the daily functions of the Finance Department. Due to the volume of special projects and the timing of City Council meetings, Staff may request a special meeting of the FAC in December. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Financial Advisory Commissioners FROM: Rosemary Hallick, Financial Services Analyst DATE: November 4, 2020 SUBJECT: SECOND QUARTER 2020 (APRIL-JUNE) SALES TAX UPDATE FOR THE CITY OF LA QUINTA The attached report was prepared by consultants HdL Companies as an update of sales tax receipts for second quarter sales from April-June 2020. Sales Tax Update •The City’s sales-per-capita was higher than both the county and state averages. •General consumer goods (such as department stores) and restaurants/hotels made up 47% of sales tax revenue during this quarter, based on the unadjusted numbers. •La Quinta’s overall adjusted sales tax receipts for major industry groups decreased (21.7%), which compares to Riverside County at (7.1%) and Southern California at (18.0%). •The City benefitted from stay-at-home orders in the form of an increase in the County pool share, due to increased online purchasing. Measure G Update •General consumer goods (such as department stores) and restaurants/hotels made up 57% of transaction tax revenue during this quarter. •The autos and transportation sector made up 14% of transaction tax revenue as opposed to 9% of sales tax revenue. •Measure G overall adjusted receipts were down (14.6%), which is more favorable than the sales taxes again due to increased online purchasing. The City continuously monitors local development, economic conditions, impacts on travel and trade, and legislative and judicial news for any potential changes to sales tax collections. Attached is the September 2020 update regarding economic conditions as related to the COVID-19 pandemic and subsequent business closures. The City’s current fiscal year budget was based on known information; however, the numbers are subject to modification based on the rapidly changing environment and will depend heavily on when the economy is reopened in full. Attachment 1: City of La Quinta Sales Tax Update Attachment 2: California Economic Forecast from HdL DEPARTMENTAL REPORT ITEM NO. 2 Sales Tax Update In Brief Top 25 producers In AlphAbetIcAl Order www.hdlcompanies.com | 888.861.0220 Q22020 La Quinta La Quinta’s receipts from April through June were 12.8% below the second sales period in 2019. Ex- cluding reporting adjustments, actu- al receipts for the period were down 21.7%.The limits placed on travel and working outside the home set by the state created a sharp drop in gas- oline sales, restaurant traffic and sales be general retail outlets. On the positive side, construction spending, business to business transactions, and sales by food and drug outlets were all up. Because folks were forced to stay home, on- line sales exploded which increased the size of the countywide pool by over 30%. The jump in the size of the pool increased the city’s alloca- tion by over $68,000.Measure G generated $2,575,612. Net of reporting adjustments, results are down 14.6% from this time last year. Gas and restaurant sales fell the most while construction spend- ing was up 13%. Net of adjustments, taxable sales for all of Riverside County declined 7.1% over the comparable time pe- riod while those of the entire South- ern California region was down 18.0%. City of La Quinta Third Quarter Receipts for Second Quarter Sales (April - June 2020) Published by HdL Companies in Fall 2020 Arco AM PM Best Buy BevMo Circle K Costco Floor & Decor Outlets G & M Oil Genesis/Hyundai of La Quinta Hobby Lobby Home Depot In N Out Burger Kohls La Quinta Chevrolet & Cadillac Lowes McDonald’s Sprouts Farmers Market Stater Bros Target Torre Nissan Tower Mart Trader Joes Verizon Wireless Vons Walgreens Walmart Supercenter $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 SALES TAX BY MAJOR BUSINESS GROUP 2nd Quarter 2019* 2nd Quarter 2020* General Consumer Goods County and State Pools Building and Construction Restaurants and Hotels Autos and Transportation Food and Drugs Fuel and Service Stations Business and Industry *Allocation aberrations have been adjusted to reflect sales activity $8,910,871 $10,172,990 3,998 4,442 1,192,051 1,349,416 $7,714,822 $8,819,131 2019-202018-19 Point-of-Sale County Pool State Pool Gross Receipts REVENUE COMPARISON Four Quarters – Fiscal Year To Date (Q3 to Q2) Measure G $11,025,748 $10,369,936 ATTACHMENT 1 NOTESSales Tax Update2Q 2020 City of La Quinta $0 $2,000 $4,000 $6,000 $8,000 SALES PER CAPITA * La Quinta Q2 17 Q2 20 Q2 18 Q2 19 County California *Allocation aberrations have been adjusted to reflect sales activity 35% Cons.Goods 18% Pools 15% Building 12% Restaurants 9% Autos/Trans. 5% Food/Drug5% Others La Quinta This Quarter*REVENUE BY BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity Q2 '20* La Quinta LA QUINTA TOP 15 BUSINESS TYPES** Business Type Change Change Change County HdL State*In thousands of dollars 23.7%7.0%23.6% 272.9 Building Materials — CONFIDENTIAL — -53.2%-53.2%-50.7% 83.0 Casual Dining -68.0%-79.3%-68.7% 16.4 Department Stores — CONFIDENTIAL — -5.8%-6.3%0.4% 474.7 Discount Dept Stores — CONFIDENTIAL — -43.6%-50.8%-45.9% 51.6 Electronics/Appliance Stores -64.9%-66.3%-66.7% 22.2 Family Apparel -19.8%-30.3%-17.9% 25.4 Fast-Casual Restaurants -66.0%-64.0%-67.2% 15.3 Fine Dining 12.7%7.8%6.1% 72.8 Grocery Stores -51.8%-41.7%-37.5% 25.3 Home Furnishings -40.3%-80.0%-78.6% 31.8 Leisure/Entertainment -28.3%-15.8%-4.2% 144.2 New Motor Vehicle Dealers — CONFIDENTIAL — -21.0%-22.0%-8.7% 61.0 Quick-Service Restaurants -42.9%-45.2%-40.6% 68.3 Service Stations -32.3%-35.9%-38.7% 34.4 Specialty Stores -24.0%-13.2%-26.8% 14.3% -21.7% 1,529.8 340.9 1,870.7 Total All Accounts County & State Pool Allocation Gross Receipts 36.7%28.2% -7.2%-16.4% ** Accounting aberrations such as late payments, fund transfers, and audit adjustments have been adjusted to reflect the quarter in which the sales occurred. Statewide Results Local sales and use tax receipts from April through June sales were 16.3% lower than the same quarter of 2019 after factoring for accounting anomalies and back pay- ments from previous quarters. This was the largest quarter to quarter de- cline since 2009. The drops were deepest in the San Francisco Bay Area, Central Coast and Southern California where de- clines in revenues from fuel, automobiles, general consumer goods and restaurants/ hotels were the most severe. However, despite a 14.9% unemployment rate that eclipsed the previous high of 12.3% during the great recession of 2010 and temporary business closures, the drop in sales was less than previously projected by most analysts including HdL. The high second quarter unemployment rates primarily affected lower wage service sectors which generate a smaller share of sales tax revenues. Internet connected knowledge workers continued to work but locked at home, found that they had extra cash to spend because of reduced commute and work-related expenses and few entertainment or travel options. Ad- ditionally, though much of the quarter’s government relief payments were spent largely on rents, utilities and necessities, the money was not distributed propor- tionally to income losses thereby adding temporary discretionary income gains for some recipients. Low interest rates and longer term lend- ing practices allowed the extra money to be spent on previously delayed purchases such as autos and home improvements. New car registrations dropped 48.9% in the second quarter, but sales tax re- ceipts dropped only 15.8% as buyers who did purchase, opted for more expensive SUV’s, trucks and luxury vehicles. As cabin fever set in, sales of RV’s, boats and Motorcycles also began to rise. With restaurants and many brick and mortar stores closed or restricted to lim- ited occupancy, buyers shifted to online shopping with tax revenues from in-state fulfillment centers rising 142.7% over the second quarter of 2019 and county pools where tax receipts from out-of-state goods are allocated, rising 28.9%. Online sales accounted for 52.0% of this quarter’s tax revenues from the general consumer goods group. Working at home eventually morphed into working on home thereby boosting related improvement purchases. Grocers, cannabis, liquor and sporting goods fur- ther helped offset losses in other segments. Strong demand for warehouse and ship- ping technology, equipment and supplies to accommodate the increase in online shopping as well as home offices and virtual classrooms helped offset declines in the business/industrial group. Un- anticipated gains in agriculture related purchases and transit spending further added to the offset. Pandemic uncertainties, fires, childcare issues and bankruptcies are expected to result in uneven gains through 2020-21 with each jurisdiction’s experience differ- ing according to the scope and character of their individual tax bases. Overall recovery and improvement in statewide receipts is not expected to begin until 2021-22. Yosemite National Park, California Delivering Revenue, Insight and Efficiency to Local Government Since 1983 HdL provides relevant information and analyses on the economic forces affecting California’s local government agencies. In addition, HdL’s Revenue Enhancement and Economic Development Services help clients to maximize revenues. HdL serves over 500 cities, counties and special districts in California and across the nation. CALIFORNIA FORECAST SALES TAX TRENDS AND ECONOMIC DRIVERS SEPTEMBER 2020 ATTACHMENT 2 FY 20/21 & 21/22 FORECAST HdL 2Q20: Forecast vs Results As part of preparing our April and June economic forecasts earlier this year, we acknowledged the second quarter of 2020 (April to June period) would be the bottoming out months for sales tax revenues. Beginning in March, shelter in place orders coupled with county-based health and safety decisions triggered immediate closure of businesses, a spike in unemployment and much uncertainty about economy recovery. Unlike prior calamities in our nation’s history, the COVID-19 pandemic was unique for many reasons, not the least of which was closing entire industries that generate sales and transaction taxes so vital for governments to deliver public services. The high second quarter unemployment rates were primarily felt in the lower wage service sectors which produced a lesser share of total sales tax revenues. Knowledge workers including professionals, analysts and marketers continued to work at home; they found extra cash to spend because of reduced commute and work-related costs as well as less entertainment/travel options. Though much of the quarter’s government relief payments were spent largely on rents, utilities, debt, and savings, the money was not distributed proportionally to income losses, thereby also triggering temporary increases in discretionary income for some beneficiaries. Low interest rates and favorable lending practices allowed the extra money to be spent on previously put off items such as autos and home improvements. To our surprise, the Autos/Transportation results were better than expected in the second quarter of 2020. While new vehicle sales were reported to be down 34% nationally, auto-related tax receipts dropped only 17% in California. Car dealers proved adept at transitioning to online sales; unprecedented government stimulus and rock-bottom interest rates were effective in avoiding worst-case possible outcomes. Furthermore, consumers had more disposable income to spend after the cancellation of vacation plans. Many thought it could be a good time to find a deal, taking advantage of attractive manufacturer incentives. Some bought a new car to avoid public transportation and ride hailing services. Others justified their purchase as an escape, wanting a new vehicle for road-trips. Recreational vehicle and boat sales were especially strong as families looked for new activities to share. Finally, car pricing has hit record levels after automotive production was curtailed earlier this year while manufacturers worked to make assembly-lines safe and, in some cases, temporarily transitioned to the fabrication of medical equipment. Second quarter results from Building/Construction were 3.3% lower than this time last year, right in line with forecast assumptions. Activity temporarily dipped following two months of job site shutdowns ordered in six Bay Area counties and a 5% decline in Los Angeles county output. Around the interior of the State, from Central California to the far northern areas, construction spending increased. Meanwhile, statewide consumer spending on home improvements drove up returns at outlets which posted record gains as home improvements occurred at a robust pace. As California continues to address all aspects of COVID-19, we have modified the September 2020 HdL Economic Forecast. Given the dramatic onset of the pandemic, we are sharing explanations about how second quarter 2020 sales tax results compared to our forecast for this time period. Information is summarized by major industry groups. It is our hope these explanations not only capture what occurred this past spring but will be helpful in explaining how fiscal year 2019/2020 sales and transactions tax results were affected by this public health crisis. The Business/Industrial group reduction was slightly less than projected because of unanticipated increases in agricultural related expenditures and demand for equipment, supplies and technology to accommodate work and school at home conversions. One-time transit projects also produced temporary gains for the group overall. Lack of dining opportunities along with stay at home mandates drove sales from full-service grocery stores up by 8%. Cannabis retailers were deemed essential; the addition of new merchants partially contributed to the 40% growth by this sector. Overall performance of the Food/Drugs group was slightly better than our estimates. The full brunt of COVID-19 struck the Fuel and Service Stations industry hard during this time. While regular and diesel gas pump prices in California began to go back up at the beginning of the quarter, this did not translate into an increase in sales tax associated with fuel. People stayed home and did not travel or participate in many road trips. The airline and travel industries were hit hard, and this translated to lower sales tax on jet fuel. Total sales tax in the industry dropped 47% in the quarter completely attributable to lack of demand and consumption of fuel. Results varied in different parts of the State, depending upon the severity of shelter in place orders, local reliance on workers and facilities that supplied diesel fuel for the trucking industry. General consumer goods receipts did better than projected declines, coming in 38% lower than the same period in 2019. Categories that exceeded expectations included electronics, home furnishings, sporting goods, and specialty stores. Statewide, these categories still reported extreme losses ranging from declines of 36% to 51%. Sporting goods/bike stores decreased only 11%. As households became local offices and learning centers it was clear spending shifted to categories that improved these spaces like home furnishings. Discount department stores, expected to perform well, grew market share and accounted for over 43% of revenue in from this group. Overall big box retailers declined which is attributed to reduced fuel consumption/prices that are combined with store transactions reported by some companies. Restaurant spending hit a low point in April. The varying levels of restrictions across the state resulted in varying performance for restaurants in the second quarter. Restaurants in the Far North, Sacramento region and San Joaquin Valley were not hit as hard as the rest of the State. These areas boosted the statewide losses. Diners were anxious to return to restaurants and rushed to eat out during the re-opening in June. This behavior proved to be a momentary lift on restrictions, but provided a much needed, albeit small boost to casual and fine dining at the end of the quarter. Our forecast for State and County Pools was inclusive of the Wayfair decision for both remote sellers plus newer marketplace facilitator taxpayers. Expectations were housebound families would be more judicious in spending, focusing on essential products and limiting discretionary spending. However, robust shopping pushed this group up 29%. Record numbers of online customer accounts were created during the shelter weeks. Online sales from segments like shoes, furniture, leisure wear and exercise equipment were beyond expectations. The largest impact emerged from general retailers who exceeded estimates; revenues from this sector rose $71 million, a 264% improvement. Significant store closures across the State along with generous temporary unemployment benefits helped spur a greater than anticipated growth by the pools. Pandemic based sales tax outcomes over the last two quarters of fiscal year 2020/21 have influenced our most recent September economic forecast. While these projections are a statewide perspectives, we remained focused on fine tuning budget estimates and addressing unique concerns based upon the expectations and needs of each client. HDL CONSENSUS FORECAST – SEPTEMBER 2020STATEWIDE SALES TAX TRENDS Autos/Transportation 0.7% | 4.4% Vehicle sales have bottomed and are beginning a recovery that will take 2-3 years, according to forecasts from WardsAuto and the Center for Automotive Research. High consumer debt and work-from-home policies are likely headwinds, but sales will be pushed forward by strong natural demand. Recent surveys indicate the biggest concern for car dealers is not economic issues but a shortfall of popular SUV and truck models on dealership lots after production was disrupted earlier this year. Consequently, vehicle pricing is at record levels. While lack of choice and fewer incentives may temporarily hamper sales, the higher pricing will be supportive of tax receipts going forward. Production issues should also be resolved in time, with WardsAuto reporting that North American factories recently reached 100% capacity utilization for the first time since 2005. Building/Construction 1.6% | 5.0% Despite seven straight quarters of declining construction permit issuance, delays caused by Covid-19 workplace standards slowed projects enough to create a backlog that will mask the decrease of future development inventory through November for the Bay Area and Southern California regions. Between January and June, expect Bay Area and Southern California total construction levels to remain static while outlying areas will see growth because of the continuing need for affordable housing. Reconstruction of fire damaged structures should begin within 6 months after the fires are completely extinguished. Business/Industry 0.4% | 6.0% Initial recovery is primarily related to accommodation of pandemic and climate-related changes. Strong demand for warehouse and shipping technology and equipment support the shift to online shopping in addition to home offices and virtual classrooms. Climate induced investment in irrigation and agricultural technology remains. Anticipate a strong rebound in medical equipment and pharmaceuticals once pandemic controls allows return of elective and non-emergency medical procedures. Unprecedented fires and hurricanes may temporarily close some production capacities and cause new supply chain interruptions. Expect uneven gains through fiscal year 2020-21 with overall improvement not until 2021- 22. Each jurisdiction’s experience will differ according to the size and character of its specific business/industrial base. Food/Drugs 3.5% | 3.0% Most entities within this group remained open as essential businesses during the shelter in place orders. As such, people had to adapt to eating at home more often; this trend should continue for grocers and food sellers who have ramped up home delivery in a big way. Cannabis companies are adding new tax revenues as more establishments become open with approval from local jurisdictions. Drug store consolidations or reductions are likely in over-saturated markets. Fuel/Service Stations -5.9% | 12.2% Oil demand and consumption has plummeted throughout the globe. OPEC eased back production by two million barrels per day in early August. Saudi Arabia sees fuel demand wavering among the coronavirus flare-ups around the globe; they cut pricing for October oil sales. Inventory levels for U.S, European and Asian producers are above levels for what is typical right now. United States production slowed from a year ago. COVID-19 has significantly curtailed demand for jet fuel. With economic signs reflecting downward pressure on the fuel industry, we forecast taxes declining for the next three quarters with recovery beginning in the spring of 2021. General Consumer Goods 1.5% | 9.4% Brick & mortar’s turbulence lingers as merchants navigate economic headwinds while trying to balance reopening stores with public health and safety concerns. Consumer spending saw a quick recovery in June as retailers began opening doors but has leveled off since July at just under 15% of pre-COVID levels. New demand for electronics, appliances, and home furnishings spurred by the need to create work from home and virtual learning environments are anticipated in the short term. Federal stimulus combined with a lack of outlays on fuel and entertainment allowed households to make use of excess discretionary income. Initial third quarter reports show spending being tempered as unemployment benefits expired and consumer confidence staggered to a six-year low. Our projections have tax volumes staying below the pre-pandemic peak through fiscal year 2021-22. 2020/21 | 2021/22 HdL Companies | hdlcompanies.com TOTAL 0.6% | 8.4%2020/21 | 2021/22 2020/21 | 2021/22 Restaurants/Hotels -15.5% | 20.1% Restaurant spending has slowly started improving, but the Governor’s Blueprint for a Safer Economy imposes capacity limits for indoor dining with the best scenario allowing indoor dining at 50% capacity. The CDC has released a study that is leading health officials to state that eating out is one of the riskiest activities for COVID. Large gatherings are still not allowed. As Paycheck Protection Program (PPP) loans run out, many types of restaurants are facing dire situations; the forecast assumes that 20% will not survive the restrictions. Restaurants with drive-thrus are a valuable asset and are performing better. The unknown timing for indoor dining and the changing weather ahead present the next obstacles for restaurants. The industry is being hit hard and the recovery will lag far behind other industry groups. HDL CONSENSUS FORECAST – SEPTEMBER 2020STATEWIDE SALES TAX TRENDS TOTAL 0.6% | 6.4%2020/21 | 2021/22 HdL Companies | hdlcompanies.com 2020/21 | 2021/22 Proposition 172 projections vary from statewide Bradley-Burns calculations due to the state’s utilization of differing collection periods in its allocation to counties. HdL forecasts a statewide increase of 0.32% for Fiscal Year 2020/2021 and 8.42% for 2021/2022. State and County Pools 12.9% | 8.0% Thrust forward by the pandemic, online sales still dominate a growth pattern in contrast to most of the on-the-ground retailer’s short-term declines noted above. Recent shelter in place mandates created some category winners, especially from direct to consumer and marketplace facilitator companies. The coronavirus spurred many more customers shopping on the web while much of the retail industry addresses location closures, layoffs and bankruptcy. The final implementation of the Wayfair decision in California occurs in the first months of fiscal year 2020-21 and will influence the forecast for that year. Thereafter, consumer’s behavior continues a steady ascent into more essential and discretionary spending away from stores; next year’s increase reflects this trend. 2020/21 | 2021/22 NATIONAL AND STATEWIDEECONOMIC DRIVERS Beacon Economics | BeaconEcon.com U.S. Real GDP Growth 12.4% | 2.4% One month the economy was fine, the next it was in complete freefall. With the second quarter behind us, we have a good idea of the damage generated by the pandemic – output dropped almost 12% from the fourth quarter of 2019 to the second quarter of 2020, the sharpest decline ever recorded. The big question is where does the economy go from here? A collapse in consumer spending occurred, but not because people couldn’t spend money (driven by a collapse of wealth), but because fear and caution surrounding the disease itself prevented them from spending. A prime example is the healthcare industry. Over one-third of the decline in consumer spending occurred from a drop in healthcare consumption. Healthcare is not a cyclical sector and did not experience a single quarter of lower spending in previous cycles. Therefore, the hit this time was not driven by reduced demand but because the healthcare system deferred non-essential visits until the virus was brought under control. So to answer the big question – there will be a bounce in economic activity in the second half of 2020, aided by the resumption of delayed spending. U.S. Unemployment Rate 7.2% | 5.1% As dramatic as the second quarter numbers have been, there is plenty of evidence indicating that the shocks to the economy are largely transitory. The enormous surge in unemployment was not driven by true job losses but by temporary layoffs. At 14.7% in April 2020, the U.S. unemployment rate reached a post-WWII high. However, in the subsequent months, the unemployment rate has steadily and consistently declined to 8.4% as of August 2020, as businesses continue to reopen and economic activity contintues to resume. Additionally, the share of the labor force that was truly unemployed – either lost their job permanently or have entered the labor market and are looking for work – was roughly 3% in April, substantially lower than the 8% plus rate seen back at the peak of the Great Recession. In a less positive sign, the unemployment rate for those who are truly unemployed increased in the following months, reaching 4.1% in July. CA Total Nonfarm Employment Growth -2.3% | 4.4% California’s labor market began to recover from the effects of the COVID-19 pandemic in May and has continued that recovery through August, adding 885,000 jobs. There was a slowing of job growth through July and August, but that was in large part a reaction to the resurgence of the virus in the form of renewed public health mandates. Yet, even with this moderation in employment growth, the previous four months account for some of the strongest month- over-month job gains in the state’s history. Notwithstanding these record-breaking gains, California has only regained 33% of the jobs that were lost in March and April. Considering the trauma sustained by the state’s economy, the key question centers on how long it will take the labor market to recover. Simply put, the roughly 2.6 million jobs lost in March and April will not return over night, even after the spread of the virus is fully contained. Indeed, about 100,000 jobs were added to the state’s economy in August, and while this is a positive sign, if the state continues to add jobs at this rate, it will take until the second half of 2021 to reach February 2020 levels. CA Unemployment Rate 9.9% | 7.4% One ostensibly positive sign is that the state’s unemployment rate fell to 11.4% in August, a 4.1-percentage-point decline relative to April, although this remains a far cry from the 3.9% rate enjoyed one year ago. It could be the case that the month-over-month decline was driven more by a decline in the state’s labor force than by an increase in employment. California’s labor force – the sum of the state’s employed and unemployed - contracted for the second consecutive month, losing 117,100 workers in August. From a year-over-year perspective, the labor force has declined by 3.7% - a steeper drop relative to the 1.9% decline in the nation overall. Since February, the number of people looking for work in the state has fallen by 807,000, a sign that many workers have become discouraged and have stopped actively looking for employment. A possibly better sign is that 50% of the state’s unemployed workers report their layoff as temporary, and that they should be returning to work in the coming months. Notably, however, in April more than 70% of the state’s workers described their unemployment in these terms. The shrinking number of people who identify as being temporarily unemployed creates concern that many exisiting layoffs are turning permanent. CA Median Existing Home Price $505,006 | $527,356 While the impact of the pandemic has been broad-based throughout the economy, the impact on the residential housing market has been relatively mild. Homebuyer sentiment took a hit in the early months of the pandemic, as buyers and sellers grappled with the new constraints of homebuying in a pandemic. Statewide, year-over-year home price appreciation fell to 0.7% in the second quarter of 2020, the lowest rate recorded since the 2008-09 recession. Meanwhile, home price growth tracked into negative territory on a quarterly basis, falling 4.1% from the first quarter to the second quarter of 2020. Fortunately, California’s housing market is recovering swiftly, in tandem with the nation as a whole. Monthly data show home sales in a high growth climate, with significant activity occurring in more rural parts of the state such as the Central Coast, Sierra/Gold Country, and north Bay Area counties. Prices are recovering as well. The resumption of sales at higher ends of the market is helping prices increase overall, while the persistence of low housing inventory adds upward price pressure in response to the surge in demand. CA Residential Building Permits 92,879 | 108,215 The COVID-19 pandemic has had less of an impact on the residential housing market than most other sectors of the economy. The quintessential V-shape recovery seen in home prices and sales testify to this dynamic. Residential construction activity in California declined in the second quarter of 2020, (despite most construction activity being deemed “essential”), and the state permitted roughly 5,000 fewer permits relative to the first quarter of the year. Thereafter, residential permitting has recovered rapidly, returning to pre-COVID levels in July. Beacon Economics considers housing to be among the least affected sectors going forward. 2020/21 | 2021/22 2020/21 | 2021/22 Beacon Economics LLC 5777 West Century Boulevard, Suite 895 Los Angeles, CA 90045 Telephone: 310.571.3399 Fax: 424.646.4660 Beacon Economics has proven to be one of the most thorough and accurate economic research/analytical forecasting firms in the country. Their evaluation of the key drivers impacting local economies and tax revenues provides additional perspective to HdL’s quarterly consensus updates. The collaboration between Beacon and HdL helps both companies enhance the accuracy of the work they perform for their clients. In addition to forecasting, Beacon specializes in economic impact analysis, sustainable growth and development, housing and land use, and regional economics. HdL Companies 120 S. State College Blvd., Suite 200 Brea, CA 92821 Telephone: 714.879.5000 • 888.861.0220 Fax: 909.861.7726 California’s allocation data trails actual sales activity by three to six months. HdL compensates for the lack of current information by reviewing the latest reports, statistics and perspectives from fifty or more economists, analysts and trade associations to reach a consensus on probable trends for coming quarters. The forecast is used to help project revenues based on statewide formulas and for reference in tailoring sales tax estimates appropriate to each client’s specific demographics, tax base and regional trends. 714.879.5000 | hdlcompanies.com POWERPOINT FAC MEETING NOVEMBER 4, 2020 11/04/20 1 Financial Advisory Commission Special Meeting 11/4/2020 1 2 11/04/20 2 Financial Advisory Commission Special Meeting 11/4/2020 Consent Calendar Items: 1.Approve Minutes Dated September 30, 2020 2. Receive and File Revenue and Expenditure Report Dated June 30, 2020 3. Receive and File Revenue and Expenditure Report Dated July 31, 2020 4. Receive and File Revenue and Expenditure Report Dated August 31, 2020 Financial Advisory Commission Special Meeting 11/4/2020 Business Session Item No. 1 Receive and File the Fiscal Year 2019/20 Year-End Budget Report 3 4 11/04/20 3 Report Content RevenuesRevenues ExpendituresExpenditures CarryoversCarryovers Reserve Balances Reserve Balances Year-Over- Year Year-Over- Year 5 Exhibits5 Exhibits General Fund Revenues General Fund Revenues 2019/20 Final Budget 2019/20 Actuals Variance % Variance Tax Revenue 40,115,600 43,286,631 3,171,031 8% Licenses & Permits 1,346,400 1,911,656 565,256 42% Intergovernmental 8,626,230 7,079,738 (1,546,492) -18% Charges for Services 999,800 1,169,982 170,182 17% Fines, Forfeitures & Abatements 276,500 375,713 99,213 36% Use of Money & Property 943,000 3,020,427 2,077,427 220% Miscellaneous/Transfers In 621,300 1,245,086 623,786 100% Total Revenues 52,928,830 58,089,233 5,160,403 10% Non-Cash Adjustments Investments Fair Market Value Adjustment (1,624,037) (1,624,037) RDA Loan Interest Earned, Extraordinary Gain (694,234) (694,234) (2,318,271) (2,318,271) Total Adjusted Revenues 52,928,830 55,770,962 2,842,132 5 6 11/04/20 4 General Fund Expenses 96% of departments within budget 1 department over budget $13,288 Measure G reserves allocation $2,136,144 Total savings $1,038,216 “Non-Cash” Transactions Revenues •Fair market value investment adjustment $1,624,037 •RDA loan interest earned $694,234 Expenses •Park land for SilverRock event site •Disposal Value $327,338 •Asset now recognized in Park and Equipment Fund 7 8 11/04/20 5 Carryovers to 2020/21 Capital Improvements • Total $13,155,144 • For 25 Projects, detailed in Exhibit D Operating • Total $1,778,800 • No FEMA reimbursements after 9-14-2020 • No capacity in current FY 2020/21 budget for unanticipated expenses Other Funds $1,996,100 Year-Over-Year Comparison General Fund Revenues 2018/19 2019/20 Variance Tax Revenue 47,664,927 43,286,631 (4,378,296) Licenses & Permits 1,545,524 1,911,656 366,132 Intergovernmental 7,256,245 7,079,738 (176,507) Charges for Services 1,153,487 1,169,982 16,495 Fines, Forfeitures & Abatements 384,308 375,713 (8,595) Use of Money & Property 2,046,307 * 1,396,390 * (649,917) Miscellaneous/Transfers In 2,622,105 550,852 * (2,071,253) Total Revenues 62,672,903 55,770,962 (6,901,941) * Reduced by non-cash transactions. General Fund Expenses 2018/19 2019/20 Variance Operating & CIP 57,191,129 * 55,775,814 * (1,415,315) Measure G Reserves 3,412,005 2,136,144 (1,275,861) * Reduced by non-cash transactions. Carryovers 2018/19 2019/20 Variance Capital Improvements 11,853,162 13,155,144 1,301,982 Operational 745,300 1,778,800 1,033,500 9 10 11/04/20 6Fund BalanceCommitted Operational Carryovers 745,300 1,778,800 1,033,500 Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 10,000,000 10,000,000 - Economic Disaster 11,000,000 6,800,000 (4,200,000) Capital Replacement Reserve 5,000,000 6,540,000 1,540,000 Total Committed 31,745,300 30,118,800 (1,626,500) Reserve/Fund Balance As of June 30, 2019 As of June 30, 2020 Change in Value Non-Spendable Prepaid Costs 37,182 14,065 (23,117) Land Held for Resale 5,730,990 5,403,652 (327,338) Advances to Other Funds - - - Due from Other Governments 27,915,770 26,069,742 (1,846,028) Total Non-Spendable 33,683,942 31,487,459 (2,196,483) Restricted Pension Trust 6,540,000 10,249,738 3,709,738 Assigned Public Safety Fire Services 9,864,841 10,491,654 626,813 Measure G Sales Tax 7,721,975 8,736,219 1,014,244 Capital Projects 11,853,162 13,155,144 1,301,982 Total Assigned 29,439,978 32,383,017 2,943,039 Unassigned 16,228,627 8,844,915 (7,383,712) TOTAL FUND BALANCE 117,637,847 113,083,929 (4,553,918) Reserve Funds Reserve/Trust Reserve Target Current Funding Over/(Under) Funded Annual Target Emergency Reserve Natural Disaster 10,000,000 10,000,000 - 1,500,000 Economic Disaster 11,000,000 6,800,000 (4,200,000) 1,000,000 Total 21,000,000 16,800,000 (4,200,000) 2,500,000 Cash Flow Reserve 5,000,000 5,000,000 - - Capital Replacement 10,000,000 6,540,000 (3,460,000) 1,000,000 Total Reserves 36,000,000 28,340,000 (7,660,000) 3,500,000 Pension Trust Fund 10,000,000 10,249,738 249,738 1,000,000 Unassigned Reserves 10,000,000 8,844,915 (1,155,085) - Overall Total 56,000,000 47,434,653 (8,565,347) 4,500,000 11 12 11/04/20 7 Discussion & Questions Well managed resources Funding pension obligations Reserves funded at 84% No General Fund debt Economic instability Ongoing pandemic Continue to pivot and serve La Quinta Financial Advisory Commission Special Meeting 11/4/2020 Business Session Item No. 2 Receive and File the Fiscal Year 2019/20 Measure G Sales Tax Compliance Report 13 14 11/04/20 8 Overview of Measure G •Transaction and use sales tax •Voter approved on November 2016 •Effective on April 1, 2017 •No sunset •Protected from State takeaways •Oversight by Financial Advisory Commission Summary Since Inception REVENUES Fiscal Year Revenues 2016/17 $ 1,462,650 2017/18 $ 9,967,657 2018/19 $ 10,958,118 2019/20 $ 10,310,526 2020/21 (Budgeted) $ 8,197,200 Total $ 40,896,151 USES Use Allocation Public Safety $10,545,000 Landscape Improvements $ 7,635,558 Parks $ 3,866,900 Drainage $ 3,352,103 Road Improvements $ 1,972,158 Highway 111 $ 1,250,000 City Facilities $ 411,013 Reserves $ 11,863,419 Total $ 40,896,151 15 16 11/04/20 9 Thank you, City of La Quinta Discussion and Questions Financial Advisory Commissioners •Dick Mills •Daniel Twohey •George Batavick •John Hoffner •Corry Hunter •Steven Rosen •Ellen Way 17 18 11/04/20 10 Financial Advisory Commission Special Meeting 11/4/2020 Business Session Item No. 3 Recommend Appropriation of Additional Measure G Funding for the SilverRock Park Venue Project No. 2016-08 and Alongi Building Project and Discuss Proposed Phase II Improvements for the SilverRock Park Venue Project Background •February 2018 created Ad Hoc Committee •August 2018 Master Plan Approved •August 2019 Construction Contract Awarded •May 2020 additional Measure G appropriation for damaged outlet structure •Unforeseen additional project costs 19 20 11/04/20 11 Current and Proposed Project Budget Current Budget Proposed Budget Arts in Public Spaces $ 300,000 $ 300,000 Measure G Funding $ 1,621,900 $ 1,866,600 Park & Rec DIF Fund $ 2,400,000 $ 2,400,000 Quimby Funding $ 2,000,000 $ 2,000,000 Total Budget: $ 6,321,900 $ 6,566,600 Additional Project Funding Needed Total Budget Amphitheater Landscape Change $ 23,500 Additional Geotechnical Soils Grading Headwall Costs, Additional Slope Repair due to Drainage Water, and additional RCP Replacement $ 60,000 Electric/water delays $ 125,000 Low voltage lighting new service and pedestal - color changing lights $ 13,000 Erosion scar repairs $ 6,000 Install Concrete Crossing over Existing Drain $ 3,300 Overseeding $ 5,150 Soil stabilization on the head wall $ 8,000 Additional Core in Retaining Wall Footing at Stage $ 750 Total:$ 244,700 21 22 11/04/20 12 Alongi Building Budget Current Budget Proposed Budget Design $ 46,955 $ 46,955 Foundation and Utility Construction $ 98,161 $ 98,161 Building Purchase $ 400,000 $ 400,000 Building Modifications 1-21-2020 $ 470,000 $ 470,000 Building Modifications 6-17-2020 $ 11,760 $ 11,760 Landscape, Irrigation and Electrical $ 0 $ 331,058 Contingency $ 173,124 $ 2,066 Total $ 1,200,000 $ 1,360,000 •$160,000 needed for landscape, irrigation and electrical work Proposed Phase II Improvements •Additional restroom •Storage building •Shade structures •Irrigation conversion from well to potable water •Landscaping and Irrigation of surrounding slopes •Landscaping and Irrigation of adjacent retention basin slope •Mitigation measures for adjacent retention basin bottom •Adding 50 additional trees for shade in park •Adding concrete curb between the parking lot and overflow parking lot •Replacing DG Parking Lot with Permeable Pavers •Shade Cover over Stage 23 24 11/04/20 13 Phase II High Priority Items HIGH PRIORITY ITEMS Cost Shade Structures (3x500sf) $ 135,000 Stabilization, Landscaping and Irrigation of adjacent retention basin slope $ 779,600 Adding 50 additional trees for shade in park $ 25,000 4 ft. safety fencing around top of retention basin outlet structure (structure is 11 ft. outlet for basin)$ 10,000 High Priority Construction Total: $ 949,600 High Priority Soft Costs Total: $ 435,000 TOTAL: $ 1,384,600 Phase II Medium Priority Items MEDIUM PRIORITY ITEMS Cost *Convert Irrigation from well and potable water source to canal water $ 164,000 Storage Building $ 140,062 Landscaping and Irrigation of surrounding slopes $ 275,000 Mitigation measures for adjacent retention basin bottom $ 246,700 Medium Priority Construction Total: $ 825,762 Medium Priority Soft Costs Total: $ 378,000 TOTAL: $ 1,203,762 *High priority, but design is required and creates time constraints that shifts to medium priority 25 26 11/04/20 14 Phase II Lower Priority Items LOWER PRIORITY ITEMS Cost Additional Restroom $ 234,138 Adding concrete curb between the parking lot and overflow parking lot $ 17,000 Replacing DG Parking Lot with Permeable Pavers $ 1,600,000 Shade Cover over Stage $ 350,000 Lower Priority Construction Total: $ 2,201,138 Lower Priority Soft Costs Total: $ 1,008,000 TOTAL: $ 3,209,138 Total Phase II Estimated Costs TOTAL PHASE II (ALL PRIORITIES) Cost Total Phase II Construction Total: $3,976,500 Total Phase II Soft Costs: $1,821,000 TOTAL: $5,797,500 27 28 11/04/20 15 Phase II Soft Cost Breakdown Construction Total 949,600$ Design: 94,960$ Professional: 73,594$ Insp/Test/Survey: 92,586$ Utility Allowance: 47,480$ Contingency: 125,822$ Total: 434,442$ Construction Total 825,762$ Design: 82,576$ Professional: 63,997$ Insp/Test/Survey: 80,512$ Utility Allowance: 41,288$ Contingency: 109,413$ Total: 377,786$ Construction Total 2,201,138$ Design: 220,114$ Professional: 170,588$ Insp/Test/Survey: 214,611$ Utility Allowance: 110,057$ Contingency: 291,651$ Total: 1,007,021$ TOTAL SOFT COSTS: 1,819,249$ High Priority Medium Priority Lower Priority PHASE II SOFT COSTS SilverRock Park Site Progress 29 30 11/04/20 16 SilverRock Park Site Progress SilverRock Park Site Progress 31 32 11/04/20 17 SilverRock Park Site Progress Questions and Discussion 33 34 11/04/20 18 Financial Advisory Commission Special Meeting 11/4/2020 Business Session Item No. 4 Receive and File the First Quarter Fiscal Year 2020/21 Budget Report Revenue •Sales tax has shown some strength over the summer, boosted by online sales and to some degree payments related to Q1 and Q2 sales •TOT is up over LY in STVR, but hotels are down; we anticipate STVR may continue to outpace projections until Spring when scheduled festivals and events were to occur •Staff is diligently monitoring trends and may adjust projections based on actual revenues received and calculated impacts of Spring cancellations for the Mid-Year and Third Quarter Budget Reports 35 36 11/04/20 19 Expenditures •City Departments appropriately adjusted spending in response to the pandemic at the end of FY 2019/20, and despite budget adjustments still realized savings which were available to be carried over into 2020/21 •Carryovers will enable departments to react to continually changing events and operational needs •Since staff does not currently anticipate revenue increases, carryovers may be the only opportunity for expenditure changes this fiscal year Questions and Discussion 37 38 11/04/20 20 Financial Advisory Commission Special Meeting 11/4/2020 Business Session Item No. 5 Discuss and Approve the Ad-Hoc Committee Recommendations for Police Services Council Direction •Staff work with FAC Subcommittee to –Evaluate Sheriff’s Department R&D Model –Analyze Matrix reports –Evaluate service delivery options including reallocations –Conduct comprehensive review of police services •5 Meetings to dive into information, discuss, and make recommendations for Council discussion •FAC Subcommittee reviewed Matrix reports, R&D proposal, Sheriff’s department billing and accounting reports, and had extensive discussions with staff 40 39 40 11/04/20 21 Assessment Summary •La Quinta Sheriff’s Staffing Levels and Workload •Police Service Rates and Fees •Overview of other Police Department Costs for Comparison Purposes •Matrix Studies – 5 years •Sheriff’s Research and Development Pilot Program 41 Financial Advisory Recommendations –This committee supports reducing patrol hours to 130 hours per day and reallocating Community Service Officers to supplement patrol hours –Increase utilization of Community Service Officers and gradually see if R&D model can work –Proceed with the Public Safety Camera System 42 41 42 11/04/20 22 Recommendation Reduce Patrol Hours & Reassigned Staff Positions Current Staffing Recommendation Captain 11 Lieutenant 11 Daily Patrol Hours 135 130 Patrol CSOs 45 Admin/Traffic Sergeant 11 Motor Officers 22 Traffic Officers 33 Traffic CSO 10 Crime Prevention CSO 11 Special Enforcement Sergeant 11 Special Enforcement Deputies 55 Narcotics Task Force Deputy 11 Gang Task Force Deputy 11 Savings $ 359,647.91 43 Way Forward –Tracking CSO adjustment to new duties and deputy's workload –Camera system –Measure level of services –Response times/tracking system “new CAD” –Regional police model 44 43 44 11/04/20 23 Financial Advisory Commission Special Meeting 11/4/2020 Departmental Report Item No. 2 Second Quarter 2020 (April - June) Sales Tax Update for the City of La Quinta. Top 25 Sales Tax Arco AM/PM Lowes Best Buy McDonald’s BevMo Sprouts Farmers Market Circle K Stater Bros Costco Target Floor & Décor Outlets Torre Nissan G&M Oil Tower Mart Genesis/Hyundai LQ Trader Joe's Hobby Lobby Verizon Wireless Home Depot Vons In N Out Burger Walgreens Kohls Walmart LQ Cadillac Chevrolet Measure G Amazon Com Services Inc Kohls Amazon Fulfillment LQ Cadillac Chevrolet Best Buy Lowes BestBuy Com Mathis Brothers Furniture Circle K McDonald’s Costco Sprouts Farmers Market DMV Allocation Stater Bros Desert European Motorcars Target Ebay Tower Mart Fiesta Ford Trader Joes Floor & Décor Vons Home Depot Walmart In N Out Burger 45 46 11/04/20 24 Financial Advisory Commission Special Meeting 11/4/2020 Departmental Report Item No. 3 La Quinta COVID-19 Small Business Emergency Economic Relief Program-Update Small Business Relief Update •On October 20th, Council amended program to allow for August rent and utility relief for businesses affected by state orders •City Manager’s Office fielded many requests and already has numerous applications in the pipeline for the new relief 47 48 11/04/20 25 Issued as of 10/30/2020 •Loans: $500,000 •CARES Act Rent Relief (July): $105,757 •Restaurant Rent Relief (July): $199,056 •Al Fresco Modifications: $99,204 •COVID Supplies: $120,057 TOTAL: $1,024,075 The Next Regular Quarterly Financial Advisory Commission Meeting will be on February 10, 2021 49 50