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2021 08 04 FACFINANCIAL ADVISORY COMMISSION AGENDA 1 AUGUST 4, 2021 REGULAR MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL COUNCIL CHAMBER 78-495 Calle Tampico, La Quinta REGULAR MEETING ON WEDNESDAY, AUGUST 4, 2021 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, N-35-20, N-60-20 and N-08- 21 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. 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 a specific agenda item or matters not on the agenda are requested to follow the instructions listed below: Written public comments – can be provided in-person during the meeting or emailed to the La Quinta Finance Department Management Assistant at jdelgado@LaQuintaCA.gov no later than 3:00 p.m. on the day of the meeting, and 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. If emailed, the email “subject line” must clearly state “Written Comments” and list the following: 1)Full Name 4) Public Comment or Agenda Item Number 2) City of Residence 5) Subject 3) Phone Number 6) Written Comments Financial Advisory Commission agendas and staff reports are now available on the City’s web page: www.laquintaca.gov FINANCIAL ADVISORY COMMISSION AGENDA 2 AUGUST 4, 2021 REGULAR MEETING *** TELECONFERENCE PROCEDURES *** Verbal public comments via Teleconference – members of the public may join the meeting virtually via Zoom and use the “raise your hand” feature when public comments are prompted by the Commission Chair; the City will facilitate the ability for a member of the public to be audible to the Commission and general public and allow him/her to speak on the item(s) requested. Please note – members of the public must unmute themselves when prompted upon being recognized by the Commission Chair, in order to become audible to Financial Advisory Commission and the public. Only one person at a time may speak by teleconference and only after being recognized by the Commission Chair. ZOOM LINK: https://us06web.zoom.us/j/88698213460 Meeting ID: 886 9821 3460 Or join by phone: (253) 215-8782 ****************************** CALL TO ORDER Roll Call: Commissioners: Anderson, Batavick, Campbell, Dorsey, Way and Chair Mills PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the Financial Advisory Commission on any matter not listed on the agenda by providing written public comments either in- person or via email as indicated above; or provide verbal public comments either in- person or via teleconference by joining the meeting virtually at https://us06web.zoom.us/j/88698213460 and use the “raise your hand” feature when prompted by the Commission Chair. Members of the public attending the meeting in-person are requested to complete a “Request to Speak” form. Please limit your comments to three (3) minutes (or 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 Government Code § 54954.2(b). CONFIRMATION OF AGENDA ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. Approve Special Meeting Minutes Dated June 2, 2021 2. Receive and File Revenue and Expenditure Report Dated April 30, 2021 3. Receive and File Revenue and Expenditure Report Dated May 31, 2021 BUSINESS SESSION 1. Appoint a Financial Advisory Commissioner Chairperson and Vice-Chairperson to serve for fiscal year 2021/22 FINANCIAL ADVISORY COMMISSION AGENDA 3 AUGUST 4, 2021 REGULAR MEETING STUDY SESSION – None DEPARTMENTAL REPORTS 1.First Quarter 2021 (January-March) Sales Tax Update for the City of La Quinta 2. Highway 111 Form Based Code and Design – Capital Improvement Project (CIP) 2019-05 Update COMMISSIONERS’ ITEMS ADJOURNMENT The next regular quarterly meeting of the La Quinta Financial Advisory Commission will be held on November 10, 2021, commencing at 4:00 p.m. at the La Quinta City Hall Council Chambers, 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 the City’s website, near the entrance to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at 78-630 Highway 111, and 51-321 Avenida Bermudas, on July 29, 2021. DATED: July 29, 2021 Jessica Delgado, Management Assistant City of La Quinta, California Public Notices x The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk’s office at (760) 777- 7092, twenty-four (24) hours in advance of the meeting and accommodations will be made. x If special electronic equipment is needed to make presentations to the City Council, arrangements should be made in advance by contacting the City Clerk’s office at (760) 777-7092. A one (1) week notice is required. x If background material is to be presented to the Councilmembers during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting. x Any writings or documents provided to a majority of the City Council regarding any item(s) on this agenda will be made available for public inspection at the Community Development counter at City Hall located at 78495 Calle Tampico, La Quinta, California, 92253, during normal business hours. Digitally signed by Jessica Delgado DN: cn=Jessica Delgado, o=City of La Quinta, ou=Finance, email=jdelgado@laquintaca.gov, c=US Date: 2021.07.29 13:45:46 -07'00' FINANCIAL ADVISORY COMMISSION MINUTES 1 JUNE 2, 2021 SPECIAL MEETING FINANCIAL ADVISORY COMMISSION SPECIAL MEETING MINUTES WEDNESDAY, JUNE 2, 2021 CALL TO ORDER A special meeting of the Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chair Mills. This meeting was held by teleconference pursuant to Executive orders N-25- 20, N-29-20, N-33-20, N-35-20, and N-60-20, 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, Twohey, Way, and Chair Mills ABSENT: None VACANCY: One STAFF PRESENT: Financial Services Analyst Hallick, Interim Finance Director Martinez, Management Assistant Delgado PLEDGE OF ALLEGIANCE Commissioner Hoffner led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA Commissioner Mills requested a discussion on a nominating committee for Chair and Vice-Chair recommendations under Commissioners’ Items. The Commission concurred. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES 2 JUNE 2, 2021 SPECIAL MEETING CONSENT CALENDAR ITEMS 1. APPROVE SPECIAL MEETING MINUTES DATED MAY 12, 2021 Motion – A motion was made and seconded by Commissioners Hoffner/Twohey to approve the Consent Calendar, as submitted. Motion passed: ayes 4, noes 0, vacancy 1, abstain 2 (Mills and Way). BUSINESS SESSION 1. DISCUSS FISCAL YEAR 2021/22 PROPOSED BUDGET AND APPROVE ALLOCATION OF MEASURE G SALES TAX REVENUE Interim Finance Director Martinez and Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission and staff discussed process for fire alarm services and citations; Measure G allocation for public safety contract services reserves and additional general fund operational expenses, and Measure G allocation for Highway 111 Corridor (Corridor) improvements as proposed in Measure G Revenues and Uses Summary handout to the staff report; process for reserve allocations; and process for seeking Council approval for City projects. The Commission requested to have Measure G reserves allocations be presented to the Commission for review and approval prior to actual expenditures; and expressed a general concern regarding allocating additional funds for capital improvement projects without a detailed accounting plan on how funds would be spent. Staff noted that all expenditures over $50,000 require Council approval per the City’s Purchasing Policy. The Commission requested that staff provide the Commission with quarterly updates of planned and actual expenditures related to the Corridor project. Motion – A motion was made and seconded by Commissioners Batavick/Hoffner to approve the fiscal year 2021/22 allocation of Measure G sales tax revenue as recommended; and to provide the Commission with quarterly updates on planned and actual expenditures related to the Highway 111 Corridor project. Motion passed: ayes 6, noes 0, vacancy 1. STUDY SESSION – None DEPARTMENTAL REPORTS – None FINANCIAL ADVISORY COMMISSION MINUTES 3 JUNE 2, 2021 SPECIAL MEETING COMMISSIONERS’ ITEMS Chair Mills thanked Commissioners Hunter, Rosen, and Twohey for their time and commitment to the Commission, and dedicated service to the community. He noted he sent an email to staff and Council expressing a concern that a majority of the Commission’s members’ terms are set to expire, and provided a recommendation that the term’s rotation schedule be amended. Chair Mills updated the Commission on his attendance of the Planning Commission (PC) meeting of April 27, 2021; said he inquired on PC’s strategy to evaluate future expenses for electric vehicle charging stations, and is awaiting a response from PC. Chair Mills mentioned the final meeting for the Library Development Impact Fee (DIF) Study subcommittee is still pending; the 10-year Financial Projections subcommittee is to be started in the Fall of 2021; and that the Long-Range Strategic Planning subcommittee was appointed three Commissioners (Mills, Hoffner, and Rosen) but would be short one Commissioner due to the resignation of Commissioner Rosen. Commissioner Way volunteered to join subcommittee if needed. Chair Mills said at the April 20 and May 4, 2021 Council meetings, the developer presented an update on the SilverRock Resort project progress and developer’s efforts to cure the default under the Purchase, Sale, And Development Agreement; the form-based code study for the Highway 111 Corridor project was presented at a Special Joint Meeting of the City Council and Planning Commission on May 18, 2021; and that all meeting videos can be found on the City’s website if any Commissioner would like to watch. Commissioner Way said a comprehensive update on the development of the SilverRock project, specifically the Montage hotel component, was presented at the June 1, 2021, Council meeting. Chair Mills inquired on how the Commission can be more proactive and suggested having a discussion on this at the next Commission meeting once new Commissioners have been appointed. Staff noted that the Commission’s work plan is listed in the La Quinta Municipal Code and included in the City’s Investment Policy. Commissioner Mills inquired on the process for adding items on the agenda; and requested that staff have correspondence issued as responses to individual Commissioner’s inquiries to be disseminated to the entire Commission. Staff asked the Commission to direct their comments and questions directly to staff, Interim Finance Director Martinez, Financial Services Analyst Hallick, and Management Assistant Delgado, to ensure a timely response is issued should a FINANCIAL ADVISORY COMMISSION MINUTES 4 JUNE 2, 2021 SPECIAL MEETING staff member be out of the office and to ensure communication is distributed in compliance with the Brown Act. Chair Mills suggested that he and Commissioner Way serve on a nomination committee to provide recommendations to the Commission for the upcoming Chair and Vice-Chair appointments at the next meeting. Staff noted this item will be agendized for the Commission’s review and consideration at the first meeting of the new fiscal year per the La Quinta Municipal Code and that each Commissioner in attendance would have the opportunity to nominate themselves or another Commissioner for the role of Chair and Vice-Chair. The Commission inquired if applicants’ resumes would be available for review. Staff noted Council will conduct the interviews during a public meeting, scheduled for June 23, 2021, at 5:00 p.m. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Way/Twohey to adjourn this meeting at 6:07 p.m. Motion passed: ayes 6, noes 0, vacancy 1. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California Digitally signed by Jessica Delgado DN: cn=Jessica Delgado, o=City of La Quinta, ou=Finance, email=jdelgado@laquintaca.gov, c=US Date: 2021.07.29 14:04:24 -07'00' City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: August 4, 2021 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED APRIL 30, 2021 RECOMMENDATION Receive and file revenue and expenditure report dated April 30, 2021. EXECUTIVE SUMMARY •The report summarizes the City’s period and year-to-date (YTD) revenues and expenditures for April 2021 (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 have been added to the current budget. 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 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: Claudia Martinez, Interim Finance Director Attachment: 1. Revenue and Expenditure Report for April 30, 2021 MTD YTD YTD Percent of Budget General Fund 5,651,898$ 42,162,084$ 73.09% All Funds 8,931,557$ 81,722,319$ 46.96% MTD YTD YTD Percent of Budget General Fund 1,353,622$ 31,146,783$ 46.44% Payroll - General Fund 869,999$ 7,706,174$ 66.86% All Funds 5,348,254$ 87,787,338$ 46.58% April Expenditures April Revenues General Fund Non-General Fund Transient Occupancy (Hotel) Tax 1,375,725$ County Government Revenue -Library/Museum 726,120$ Measure G Sales Tax 1,336,732$ Hwy Safety Improvement Program (HSIP) Grant 512,924$ Sales Tax 1,212,685$ SilverRock Greens Fees 357,953$ Property Tax 678,028$ Active Transportation Grant - Complete Streets 267,047$ Franchise Fees- SoCal Gas 173,961$ Pension Trust Earnings 200,929$ General Fund Non-General Fund Contract Legal Services 64,040$ Capital Improvement Program (CIP) - Construction(1)2,580,266$ Marketing and Tourism Promotions 46,194$ Homelessness Assistance 300,000$ G reater Palm Springs Convention Bureau 42,207$ CIP - Design(2)162,928$ Parks Landscape Maintenance 35,765$ SilverRock Maintenance 158,002$ Parks Maintenance/Services 28,339$ Lighting & Landscape Maintenance 59,858$ (2) CIP Design: Hwy 111 planning, north La Quinta landscape improvements, SilverRock event site landscaping. Top Five Revenue/Income Sources for April Top Five Expenditures/Outlays for April (1) CIP Construction: X-Park, SilverRock Way, ADA improvements, public safety cameras, Washington/Fred Waring trilple left project. For Fiscal: 2020/21 Period Ending: 04/30/2021 Page 1 of 3 Revenue Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 42,162,0845,651,89850,726,100 57,685,534 -15,523,450 73.09 % 201 - GAS TAX FUND 1,307,132129,2001,778,400 1,791,800 -484,668 72.95 % 202 - LIBRARY & MUSEUM FUND 1,465,856726,1752,808,500 2,807,200 -1,341,344 52.22 % 203 - PUBLIC SAFETY FUND (MEASURE G)12,893010,000 342,000 -329,107 3.77 % 210 - FEDERAL ASSISTANCE FUND 175,766175,659141,900 147,472 28,294 119.19 % 212 - SLESA (COPS) FUND 117,76316,667101,000 101,000 16,763 116.60 % 215 - LIGHTING & LANDSCAPING FUND 1,418,8882361,877,000 1,857,100 -438,212 76.40 % 220 - QUIMBY FUND 10,530080,000 80,000 -69,470 13.16 % 221 - AB 939 - CALRECYCLE FUND 42,4946,58576,000 76,000 -33,506 55.91 % 223 - MEASURE A FUND 1,201,997149,8341,319,000 1,519,000 -317,003 79.13 % 224 - TUMF FUND -376000 -376 0.00 % 225 - INFRASTRUCTURE FUND 2090200200 9 104.49 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)9,8689,87912,100 19,700 -9,832 50.09 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)3,1946,0185,000 5,000 -1,806 63.88 % 230 - CASp FUND, AB 1379 14,3741,56018,200 18,200 -3,826 78.98 % 231 - SUCCESSOR AGCY PA 1 RORF 7,280,305020,539,264 20,539,264 -13,258,959 35.45 % 235 - SO COAST AIR QUALITY FUND 26,19512,39153,000 53,000 -26,805 49.42 % 237 - SUCCESSOR AGCY PA 1 ADMIN 12,522013,505 13,505 -983 92.72 % 241 - HOUSING AUTHORITY 2,027,283202,336513,300 1,901,756 125,527 106.60 % 243 - RDA LOW-MOD HOUSING FUND 29,957035,000 35,000 -5,043 85.59 % 244 - HOUSING GRANTS (Multiple)00060,000 -60,000 0.00 % 247 - ECONOMIC DEVELOPMENT FUND 534,860040,000 649,100 -114,240 82.40 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)75,6420200,000 201,000 -125,358 37.63 % 250 - TRANSPORTATION DIF FUND 573,601128,288380,000 380,000 193,601 150.95 % 251 - PARKS & REC DIF FUND 254,49767,392304,000 304,000 -49,503 83.72 % 252 - CIVIC CENTER DIF FUND 155,59239,360110,000 112,000 43,592 138.92 % 253 - LIBRARY DEVELOPMENT DIF 47,63612,70445,000 45,000 2,636 105.86 % 254 - COMMUNITY & CULTURAL CENTERS DIF 111,71530,59216,500 76,500 35,215 146.03 % 255 - STREET FACILITY DIF FUND 4,560017,000 2,000 2,560 228.02 % 256 - PARK FACILITY DIF FUND 33307,100 500 -167 66.54 % 257 - FIRE PROTECTION DIF 49,19311,80855,500 55,500 -6,307 88.64 % 270 - ART IN PUBLIC PLACES FUND 138,5656,224111,000 121,000 17,565 114.52 % 275 - LQ PUBLIC SAFETY OFFICER 2,53002,600 2,600 -70 97.30 % 299 - INTEREST ALLOCATION FUND -269,33885,49400 -269,338 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 -1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 14,840,665823,77119,058,300 74,218,948 -59,378,283 20.00 % 405 - SA PA 1 CAPITAL IMPRV FUND 36,2330100,000 100,000 -63,767 36.23 % 501 - FACILITY & FLEET REPLACEMENT 712,43621,268902,500 902,500 -190,064 78.94 % 502 - INFORMATION TECHNOLOGY 1,331,0911,8281,721,500 1,747,300 -416,209 76.18 % 503 - PARK EQUIP & FACILITY FUND 189,0760245,000 245,000 -55,924 77.17 % 504 - INSURANCE FUND 700,9820928,500 928,500 -227,518 75.50 % 601 - SILVERROCK RESORT 3,655,330413,4613,882,100 4,182,100 -526,770 87.40 % 602 - SILVERROCK GOLF RESERVE 5,64404,500 4,500 1,144 125.42 % 760 - SUPPLEMENTAL PENSION PLAN 5,99006,500 6,500 -510 92.16 % 761 - CERBT OPEB TRUST 220,623060,000 75,000 145,623 294.16 % 762 - PARS PENSION TRUST 1,025,928200,929300,000 600,000 425,928 170.99 % Report Total:8,931,557 81,722,319108,606,169 174,013,379 -92,291,060 46.96 % Accounts are subject to adjusting entries and audit. The City's Annual Comprehensive Financial Report published annually in December, is the best resource for all final audited numbers. ATTACHMENT 1 Budget Report No Decimals CC RevExp For Fiscal: 2020/21 Period Ending: 04/30/2021 Page 2 of 3 Expenditure Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 31,146,7831,353,62247,911,600 67,075,553 35,928,770 46.44 % 201 - GAS TAX FUND 853,72149,4481,775,300 2,288,769 1,435,048 37.30 % 202 - LIBRARY & MUSEUM FUND 1,041,72022,9511,715,100 2,318,100 1,276,380 44.94 % 203 - PUBLIC SAFETY FUND (MEASURE G)26,85001,000,000 1,372,296 1,345,446 1.96 % 210 - FEDERAL ASSISTANCE FUND 00141,900 321,339 321,339 0.00 % 212 - SLESA (COPS) FUND 67,5610100,000 100,000 32,439 67.56 % 215 - LIGHTING & LANDSCAPING FUND 1,527,495197,6121,876,600 2,126,600 599,105 71.83 % 220 - QUIMBY FUND 520,886002,781,625 2,260,739 18.73 % 221 - AB 939 - CALRECYCLE FUND 5,8793,704100,000 250,000 244,121 2.35 % 223 - MEASURE A FUND 198,8118,7701,263,900 2,455,084 2,256,273 8.10 % 225 - INFRASTRUCTURE FUND 00022,618 22,618 0.00 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)19,629012,000 19,600 -29 100.15 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)6,0186,0185,000 5,000 -1,018 120.36 % 230 - CASp FUND, AB 1379 2,37804,400 4,400 2,022 54.05 % 231 - SUCCESSOR AGCY PA 1 RORF 17,378,3523,6248,405,468 8,405,468 -8,972,884 206.75 % 235 - SO COAST AIR QUALITY FUND 35,6129,78042,200 48,900 13,288 72.83 % 237 - SUCCESSOR AGCY PA 1 ADMIN 12,7553,00513,505 13,505 750 94.45 % 241 - HOUSING AUTHORITY 889,811112,415822,300 1,270,062 380,251 70.06 % 243 - RDA LOW-MOD HOUSING FUND 300,000300,000250,000 300,000 0 100.00 % 244 - HOUSING GRANTS (Multiple)26,7770060,000 33,223 44.63 % 247 - ECONOMIC DEVELOPMENT FUND 1,474,37410,94210,000 1,630,500 156,126 90.42 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)6,116,79606,185,000 6,185,000 68,204 98.90 % 250 - TRANSPORTATION DIF FUND 743,05601,293,000 1,957,670 1,214,614 37.96 % 251 - PARKS & REC DIF FUND 962,46900959,713 -2,756 100.29 % 253 - LIBRARY DEVELOPMENT DIF 12,143030,000 30,000 17,857 40.48 % 254 - COMMUNITY & CULTURAL CENTERS DIF 000101,639 101,639 0.00 % 256 - PARK FACILITY DIF FUND 0005,600 5,600 0.00 % 270 - ART IN PUBLIC PLACES FUND 51,9020110,000 725,700 673,798 7.15 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 15,551,5862,837,31419,058,300 71,005,842 55,454,256 21.90 % 405 - SA PA 1 CAPITAL IMPRV FUND 3,559,470006,039,155 2,479,685 58.94 % 501 - FACILITY & FLEET REPLACEMENT 352,46532,361902,500 1,144,464 791,998 30.80 % 502 - INFORMATION TECHNOLOGY 951,66870,2241,684,200 1,924,200 972,532 49.46 % 503 - PARK EQUIP & FACILITY FUND 137,2840595,000 682,986 545,702 20.10 % 504 - INSURANCE FUND 870,009277827,500 904,500 34,491 96.19 % 601 - SILVERROCK RESORT 2,881,212321,2803,881,500 3,881,500 1,000,288 74.23 % 760 - SUPPLEMENTAL PENSION PLAN 12,833012,850 12,850 17 99.87 % 761 - CERBT OPEB TRUST 1,23301,500 1,500 267 82.17 % 762 - PARS PENSION TRUST 47,7994,90852,000 52,000 4,201 91.92 % Report Total:5,348,254 87,787,338100,083,723 188,484,838 100,697,500 46.58 % Accounts are subject to adjusting entries and audit. The City's Annual Comprehensive Financial Report 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. 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. 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. 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 Page 3 of 3 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: August 4, 2021 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED May 31, 2021 RECOMMENDATION Receive and file revenue and expenditure report dated May 31, 2021. EXECUTIVE SUMMARY •The report summarizes the City’s period and year-to-date (YTD) revenues and expenditures for May 2021 (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 have been added to the current budget. 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 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: Claudia Martinez, Interim Finance Director Attachment: 1. Revenue and Expenditure Report for May 31, 2021 MTD YTD YTD Percent of Budget General Fund 5,585,885$ 47,747,969$ 82.77% All Funds 7,445,754$ 89,168,073$ 51.24% MTD YTD YTD Percent of Budget General Fund 2,996,799$ 34,143,582$ 50.90% Payroll - General Fund 618,259$ 8,324,433$ 72.23% All Funds 4,614,317$ 92,401,654$ 49.02% May Revenues May Expenditures General Fund Non-General Fund Property Tax 2,199,144$ Lighting and Landscape District Assessments 400,472$ Transient Occupancy (Hotel) Tax 1,344,628$ Public Safety Fund- Transfer In 332,000$ Measure G Sales Tax 924,940$ SilverRock Greens Fees 241,115$ Sales Tax 667,531$ County Sales Tax (Measure A)184,447$ Franchise Fees- Cable Television 157,828$ Road Maintenance Rehabilitationn (SB1) 61,832$ General Fund Non-General Fund Sheriff Contract (February to March)1,297,032$ Capital Improvement Program (CIP) - Construction(2)394,468$ Transfers Out 632,000$ SilverRock Maintenance 194,805$ Marketing and Tourism Promotions 80,307$ Lighting & Landscape Maintenance 59,858$ Public Works Professional Services (1)38,243$ Vehicles 53,398$ Parks Landscape Maintenance 51,815$ Museum Operations 48,750$ Top Five Revenue/Income Sources for May Top Five Expenditures/Outlays for May (2) CIP Construction: SilverRock event site; Washington & Ave 47 re-wire; public safety cameras; north La Quinta landscape improvements. (1)National Pollutant Discharge Elimination System (NPDES) stormwater permit fees For Fiscal: 2020/21 Period Ending: 05/31/2021 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 47,747,9695,585,88550,726,100 57,685,534 -9,937,565 82.77 % 201 - GAS TAX FUND 1,368,96461,8321,778,400 1,791,800 -422,836 76.40 % 202 - LIBRARY & MUSEUM FUND 1,465,948922,808,500 2,807,200 -1,341,252 52.22 % 203 - PUBLIC SAFETY FUND (MEASURE G)344,893332,00010,000 342,000 2,893 100.85 % 210 - FEDERAL ASSISTANCE FUND 175,7660141,900 147,472 28,294 119.19 % 212 - SLESA (COPS) FUND 126,0978,333101,000 101,000 25,097 124.85 % 215 - LIGHTING & LANDSCAPING FUND 1,819,359400,4721,877,000 1,857,100 -37,741 97.97 % 220 - QUIMBY FUND 10,530080,000 80,000 -69,470 13.16 % 221 - AB 939 - CALRECYCLE FUND 42,494076,000 76,000 -33,506 55.91 % 223 - MEASURE A FUND 1,386,444184,4471,319,000 1,519,000 -132,556 91.27 % 224 - TUMF FUND -376000 -376 0.00 % 225 - INFRASTRUCTURE FUND 2090200200 9 104.49 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)9,868012,100 19,700 -9,832 50.09 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)3,19405,000 5,000 -1,806 63.88 % 230 - CASp FUND, AB 1379 15,7781,40418,200 18,200 -2,422 86.69 % 231 - SUCCESSOR AGCY PA 1 RORF 7,280,305020,539,264 20,539,264 -13,258,959 35.45 % 235 - SO COAST AIR QUALITY FUND 26,195053,000 53,000 -26,805 49.42 % 237 - SUCCESSOR AGCY PA 1 ADMIN 12,522013,505 13,505 -983 92.72 % 241 - HOUSING AUTHORITY 2,110,39883,115513,300 1,901,756 208,642 110.97 % 243 - RDA LOW-MOD HOUSING FUND 29,957035,000 35,000 -5,043 85.59 % 244 - HOUSING GRANTS (Multiple)00060,000 -60,000 0.00 % 247 - ECONOMIC DEVELOPMENT FUND 534,860040,000 649,100 -114,240 82.40 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)75,6420200,000 201,000 -125,358 37.63 % 250 - TRANSPORTATION DIF FUND 617,70044,099380,000 380,000 237,700 162.55 % 251 - PARKS & REC DIF FUND 277,66323,166304,000 304,000 -26,337 91.34 % 252 - CIVIC CENTER DIF FUND 169,12213,530110,000 112,000 57,122 151.00 % 253 - LIBRARY DEVELOPMENT DIF 52,0034,36745,000 45,000 7,003 115.56 % 254 - COMMUNITY & CULTURAL CENTERS DIF 122,23110,51616,500 76,500 45,731 159.78 % 255 - STREET FACILITY DIF FUND 4,560017,000 2,000 2,560 228.02 % 256 - PARK FACILITY DIF FUND 33307,100 500 -167 66.54 % 257 - FIRE PROTECTION DIF 53,2524,05955,500 55,500 -2,248 95.95 % 270 - ART IN PUBLIC PLACES FUND 139,010445111,000 121,000 18,010 114.88 % 275 - LQ PUBLIC SAFETY OFFICER 2,53002,600 2,600 -70 97.30 % 299 - INTEREST ALLOCATION FUND -213,58155,75700 -213,581 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 -1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 14,840,665019,058,300 74,218,948 -59,378,283 20.00 % 405 - SA PA 1 CAPITAL IMPRV FUND 36,2330100,000 100,000 -63,767 36.23 % 501 - FACILITY & FLEET REPLACEMENT 712,4360902,500 902,500 -190,064 78.94 % 502 - INFORMATION TECHNOLOGY 1,332,5511,4601,721,500 1,747,300 -414,749 76.26 % 503 - PARK EQUIP & FACILITY FUND 189,0760245,000 245,000 -55,924 77.17 % 504 - INSURANCE FUND 700,9820928,500 928,500 -227,518 75.50 % 601 - SILVERROCK RESORT 4,231,896576,5663,882,100 4,182,100 49,796 101.19 % 602 - SILVERROCK GOLF RESERVE 5,64404,500 4,500 1,144 125.42 % 760 - SUPPLEMENTAL PENSION PLAN 5,99006,500 6,500 -510 92.16 % 761 - CERBT OPEB TRUST 220,623060,000 75,000 145,623 294.16 % 762 - PARS PENSION TRUST 1,080,13754,209300,000 600,000 480,137 180.02 % Report Total:7,445,754 89,168,073108,606,169 174,013,379 -84,845,306 51.24 % Accounts are subject to adjusting entries and audit. The City's Annual Comprehensive Financial Report published annually in December, is the best resource for all final audited numbers. ATTACHMENT 1 For Fiscal: 2020/21 Period Ending: 05/31/2021 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 34,143,5822,996,79947,911,600 67,075,553 32,931,971 50.90 % 201 - GAS TAX FUND 912,07358,3521,775,300 2,288,769 1,376,696 39.85 % 202 - LIBRARY & MUSEUM FUND 1,163,589121,8691,715,100 2,318,100 1,154,511 50.20 % 203 - PUBLIC SAFETY FUND (MEASURE G)26,85001,000,000 1,372,296 1,345,446 1.96 % 210 - FEDERAL ASSISTANCE FUND 00141,900 321,339 321,339 0.00 % 212 - SLESA (COPS) FUND 68,8341,273100,000 100,000 31,166 68.83 % 215 - LIGHTING & LANDSCAPING FUND 1,711,526184,0311,876,600 2,126,600 415,074 80.48 % 220 - QUIMBY FUND 520,886002,781,625 2,260,739 18.73 % 221 - AB 939 - CALRECYCLE FUND 33,29027,411100,000 250,000 216,710 13.32 % 223 - MEASURE A FUND 198,81101,263,900 2,455,084 2,256,273 8.10 % 225 - INFRASTRUCTURE FUND 00022,618 22,618 0.00 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)19,629012,000 19,600 -29 100.15 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)6,01805,000 5,000 -1,018 120.36 % 230 - CASp FUND, AB 1379 2,37804,400 4,400 2,022 54.05 % 231 - SUCCESSOR AGCY PA 1 RORF 17,391,63413,2818,405,468 8,405,468 -8,986,166 206.91 % 235 - SO COAST AIR QUALITY FUND 36,02741542,200 48,900 12,873 73.67 % 237 - SUCCESSOR AGCY PA 1 ADMIN 12,755013,505 13,505 750 94.45 % 241 - HOUSING AUTHORITY 991,879102,069822,300 1,270,062 278,183 78.10 % 243 - RDA LOW-MOD HOUSING FUND 300,0000250,000 300,000 0 100.00 % 244 - HOUSING GRANTS (Multiple)26,7770060,000 33,223 44.63 % 247 - ECONOMIC DEVELOPMENT FUND 1,494,37420,00010,000 1,630,500 136,126 91.65 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)6,116,79606,185,000 6,185,000 68,204 98.90 % 250 - TRANSPORTATION DIF FUND 743,05601,293,000 1,957,670 1,214,614 37.96 % 251 - PARKS & REC DIF FUND 962,46900959,713 -2,756 100.29 % 253 - LIBRARY DEVELOPMENT DIF 12,143030,000 30,000 17,857 40.48 % 254 - COMMUNITY & CULTURAL CENTERS DIF 000101,639 101,639 0.00 % 256 - PARK FACILITY DIF FUND 0005,600 5,600 0.00 % 270 - ART IN PUBLIC PLACES FUND 63,34511,443110,000 725,700 662,355 8.73 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 16,017,128465,54219,058,300 71,005,842 54,988,714 22.56 % 405 - SA PA 1 CAPITAL IMPRV FUND 3,559,470006,039,155 2,479,685 58.94 % 501 - FACILITY & FLEET REPLACEMENT 433,29680,831902,500 1,144,464 711,167 37.86 % 502 - INFORMATION TECHNOLOGY 1,038,30586,6371,684,200 1,924,200 885,895 53.96 % 503 - PARK EQUIP & FACILITY FUND 139,7772,493595,000 682,986 543,209 20.47 % 504 - INSURANCE FUND 869,989-20827,500 904,500 34,511 96.18 % 601 - SILVERROCK RESORT 3,318,130436,9183,881,500 3,881,500 563,370 85.49 % 760 - SUPPLEMENTAL PENSION PLAN 12,833012,850 12,850 17 99.87 % 761 - CERBT OPEB TRUST 1,23301,500 1,500 267 82.17 % 762 - PARS PENSION TRUST 52,7714,97252,000 52,000 -771 101.48 % Report Total:4,614,317 92,401,654100,083,723 188,484,838 96,083,184 49.02 % Accounts are subject to adjusting entries and audit. The City's Annual Comprehensive Financial Report published annually in December, is the best resource for all final audited numbers. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: August 4, 2021 STAFF REPORT AGENDA TITLE: APPOINT A FINANCIAL ADVISORY COMMISSIONER CHAIRPERSON AND VICE-CHAIRPERSON FOR FISCAL YEAR 2021/22 RECOMMENDATION Appoint a Financial Advisory Commissioner Chairperson and Vice-Chairperson to serve for fiscal year 2021/22. EXECUTIVE SUMMARY • The August 4, 2021 meeting is the first scheduled meeting of the Financial Advisory Commission (FAC) for 2021/22. • Pursuant to La Quinta Code 2.06.050 the FAC, at its first meeting held after June 30, shall vote to elect one of its members as Chairperson and elect another as Vice-Chairperson. FISCAL IMPACT - None. BACKGROUND/ANALYSIS In accordance with La Quinta Code 2.06.050, “unless otherwise provided by law, ordinance or resolution of the city council, each board, commission and committee shall choose one of its members as Chairperson and one as Vice- Chairperson at its first meeting held after June 30th of each year.” Pursuant to this section, staff has placed this item on the agenda for appointment of a Chairperson and a Vice-Chairperson. ALTERNATIVES This action is required by City Code, staff does not recommend an alternative. Prepared by: Jessica Delgado, Management Assistant Approved by: Claudia Martinez, Interim Finance Director BUSINESS SESSION ITEM NO. 1 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Members of the Financial Advisory Commission FROM: Rosemary Hallick, Financial Services Analyst DATE: August 4, 2021 SUBJECT: FIRST QUARTER 2021 (JANUARY-MARCH) 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 first quarter sales from January to March 2021. •La Quinta’s overall adjusted sales tax receipts for major industry groups increased 5.2%, which compares to Riverside County at 22.7% and the state at 9.5%. •The City’s sales-per-capita was higher than both the county and state averages. •General consumer goods (such as department stores) made up 35% of sales tax revenue and 43% of Measure G revenue. •Autos and transportation made up 10% of sales tax revenue and 15% of Measure G revenue. •As in the fourth quarter, the City continues to benefit from increased online purchasing in the form of an increase in the County pool share, which was 16% of our sales tax revenue. 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. The City’s fiscal year 2020/21 budget was DEPARTMENTAL REPORT ITEM NO. 1 conservatively forecast based on known information as of Spring 2020, and has been adjusted twice throughout the year to reflect actual incoming tax receipts. Year-to-date sales tax collections are trending higher than budget. The below chart shows collections through March 2021. Attachment 1: HdL Q1 Sales Tax Update www.hdlcompanies.com | 888.861.0220 Q1 2020* Q1 2021* Legend $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 SALES TAX BY MAJOR BUSINESS GROUP*Allocation aberrations have been adjusted to reflect sales activity General Consumer Goods Restaurants and Hotels County and State Pools Building and Construction Autos and Transportation Food and Drugs Fuel and Service Stations Business and Industry TOP 25 PRODUCERSCITY OF LA QUINTA HIGHLIGHTS Published by HdL Companies in Summer 2021 Best Buy Circle K Costco Floor & Decor Outlets Genesis/Hyundai of La Quinta Hideaway Club Hobby Lobby Home Depot In N Out Burger Kohls La Quinta Chevrolet & Cadillac La Quinta Resort and PGA West Lavender Bistro Lowes Marshalls PGA West Private PGA WEST Private Clubhouse & Golf Courses Ross Stater Bros Target TJ Maxx Torre Nissan Tower Mart Vons Walmart Supercenter SALES TAX UPDATE CITY OF LA QUINTA 1Q 2021 (JANUARY - MARCH) La Quinta’s receipts from January through March were 33.7% above the first sales period in 2020. Excluding reporting aberrations, actual sales were up 5.2%. Retailers in the general consumer goods group continued to encourage online ordering and curbside pickup to help boost sales during reduced in-store capacity. The home improvement trend continued to boost sales from building- construction as consumers focused on upgrading outdoor spaces, adding gardens and home offices. The first quarter of 2021 has resulted in strong sales for autos-transportation, despite lower inventories related to a worldwide semiconductor shortage. Key markets in the business-industry sector are recovering and expecting growth across packaging, infrastructure, mobility, consumer durables, industrials, as well as home and personal care. Riverside County moved into the state’s less restrictive tier on March 17, 2021, allowing restaurants to open for in- person dining that will pull the category out of its pandemic slump. The City’s 1% transactions and use tax, Measure G, brought in an additional $3,258,756 in revenue. The City’s share of the countywide use tax pool increased 9.6% when compared to the same period in the prior year. TOTAL: 14.6% $3,258,756 Measure G TOTAL:$ 2,729,577 5.2% 22.7% 9.5% COUNTY STATE LA QUINTA 1Q2021 ATTACHMENT 1 TOP NON-CONFIDENTIAL BUSINESS TYPES Q1 '21*La QuintaBusiness Type Change Change ChangeCountyHdL State -18.9%-11.1%-14.8% 158.0 Casual Dining -59.2%-35.2%-2.2% 120.8 Leisure/Entertainment 9.0%23.4%12.0% 98.7 Electronics/Appliance Stores -4.0%2.4%0.3% 97.5 Service Stations 1.1%14.7%6.8% 78.4 Quick-Service Restaurants -6.2%-1.7%-6.1% 75.9 Grocery Stores 20.5%32.1%38.8% 71.1 Family Apparel 19.3%31.2%23.2% 69.9 Home Furnishings 9.0%15.2%6.6% 57.9 Specialty Stores -33.3%-24.8%-26.1% 46.6 Fine Dining *Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars REVENUE BY BUSINESS GROUP La Quinta This Quarter* 16% Pools 18% Restaurants 10% Autos/Trans. 12% Building 35% Cons.Goods 10% Others *ADJUSTED FORECONOMIC DATA SALES TAX UPDATECITY OF LA QUINTA1Q 2021 STATEWIDE RESULTS The local one cent sales and use tax from sales occurring January through March, was 9.5% higher than the same quarter one year ago after factoring for accounting anomalies and back payments from previous quarters. The Shelter-In-Place directive began one year ago which had the impact of immediate store and restaurant closures combined with remote/work from home options for employees which significantly reduced commuting traffic and fuel sales. When comparing to current period data, percentage gains are more dramatic. Furthermore, this pandemic dynamic combined with the Governor’s first Executive Order of last spring allowing for deferral of sales tax remittances explained why non-adjusted cash results were actually up 33%. These initial recovery gains were not the same everywhere. Inland regions like Sacramento, San Joaquin Valley, Sierras, Far North and the Inland Empire area of Southern California performed much stronger than the Bay Area, Central Coast and metro areas of Southern California. Within the results, solid performance by the auto-transportation and building- construction industries really helped push receipts higher. Weak inventories and scarcity for products increased the taxable price of vehicles (new & used), RV’s, boats and lumber which appeared to be a major driving force for these improved returns. Even though e-commerce sales activity continued to rise, brick and mortar general consumer retailers also showed solid improvement of 11% statewide. An expected change occurred this quarter as a portion of use tax dollars previously distributed through the countywide pools was redirected to specific local jurisdictions. Changes in business structure required a taxpayer to determine where merchandise was inventoried at the time orders were made. Therefore, rather than apportion sales to the county pool representing where the merchandise was shipped, goods held in California facilities required allocations be made to the agency where the warehouse resides. With this modification, the business and industry category jumped 18% inclusive of steady gains by fulfillment centers, medical- biotech and garden-agricultural suppliers. Even after the change noted, county pools surged 18% which demonstrated consumers continued desire to make purchases online. Although indoor dining was available in many counties, the recovery for restaurants and hotels still lagged other major categories. Similarly, while commuters and travelers slowly began returning to the road, the rebound for gas stations and jet fuel is trailing as well. Both sectors are expected to see revenues climb in the coming quarters as commuters and summer tourism heats up. Looking ahead, sustained growth is anticipated through the end of the 2021 calendar year. As a mild head wind, pent up demand for travel and experiences may begin shifting consumer dollars away from taxable goods; this behavior modification could have a positive outcome for tourist areas within the state. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: FROM: DATE: Members of the Financial Advisory Commission Rosemary Hallick, Financial Services Analyst August 4, 2021 SUBJECT: HIGHWAY 111 FORM BASED CODE AND DESIGN - CIP PROJECT 2019-05 UPDATE _______________________________________________________________ The below report was written by Cheri Flores, Planning Manager, and presented to City Council on April 4, 2021. In addition, the City Council and Planning Commission held a joint meeting on May 18, 2021, to discuss the sample Form-Based Code as developed by the consultants. City Staff is currently working with the consultants to address comments and input from that meeting, the results of which may be presented to City Council by year-end. The Highway 111 Corridor Plan (Plan) seeks to address connectivity, pedestrian- and bicycle-friendliness, transit, green infrastructure, economic development, and the retrofitting of the existing suburban fabric. Recommendations from the Plan detail a strategy for improvements, recognizing the dual functions of moving vehicles and creating a safe, walkable environment that will lead to increases in economic competitiveness, neighborhood livability, and sustainability in La Quinta. In September 2020, Council approved a contract with GHD, Inc. and Lisa Wise Consulting (LWC) to continue planning efforts for the Highway 111 Corridor (Corridor) consisting of four phases: •Phase 1: Form-Based Code (FBC) Assessment o Provide an overview of what FBC’s are and examples of other cities that have implemented them successfully. o Prepare a sample FBC for a portion of the Corridor – the demonstration site. •Phase 2: Corridor Design Concept o Create design concepts for the Corridor including landscape design guidelines, and considering right of way availability, utility conflicts, roadway level of service, and business access. •Optional Phase 3: Active Transportation Program (ATP) Grant Application and Engineered Plans, Specifications, and Estimates (PS&E) for demonstration project o Prepare ATP grant application and PS&E for the demonstration project area identified in Phase 1. •Optional Phase 4: Highway 111 Corridor Form-Based Code DEPARTMENTAL REPORT ITEM NO. 2 o Conduct deeper review into the Specific Plans along the Corridor, which may include maintaining standards we want to keep or removing standards that do not work. o Determine the possibility of repealing some or all of the Specific Plans and/or consolidation utilizing FBC or combination. o Prepare FBC for the entire Corridor. Staff worked with the consulting team on Phases 1 and 2. As part of Phase 1, an educational session was given in a joint meeting of the Council and Planning Commission in November 2020, including an introduction to form-based code, examples from other cities where this has been implemented and how it could be used in La Quinta. Council and the Commission gave feedback which is being incorporated into the preparation of the sample FBC for the demonstration site, located on the north side of Highway 111, generally between La Quinta Center Drive and La Quinta Drive (Attachment 1). The sample FBC will include an overview of the demonstration site (including a summary of the General Plan, Zoning and Specific Plan that governs the site), summary of suggested FBC districts, and development standards for height, setbacks, and design. The sample FBC builds on the existing framework and includes suggestions and interventions that can be done to guide developers to realize the vision. For Phase 2, staff is also currently working with the consulting team to develop a set of design concepts for the Highway 111 roadway. This effort includes an analysis of existing conditions on the roadway, review of vehicle collision data, traffic counts and level of service, and bike and pedestrian conditions and comfort levels on the roadway. Design concepts will be evaluated against these and more performance metrics, including return on investment. The concepts will seek to implement transportation corridor improvements that complement the vision for development along Highway 111, including connections into the demonstration site, the CVLink, and proposed future multimodal corridors like the Arts & Music Line. In addition to the planning efforts for the Corridor, staff has been working on the 6th cycle update to the City’s Housing Element. During this effort, staff has identified housing inventory sites, as is required for Housing Elements, including three within the Corridor (Attachment 1). Housing inventory sites are required to be identified to show that cities can meet their Regional Needs Housing Assessment (RHNA) share given by the State. These sites were chosen to be included in the inventory because of the ability to have mixed use in the Corridor area. If sites identified in the inventory are not used for affordable housing, the City must identify an alternate site which could be available for the same number of affordable units identified in the housing element for that site. Staff is continuing to work with the consulting team on the Corridor planning efforts. Expenditures related to the project are detailed in the Project Activity Report (Attachment 2) which includes just under $300K in expenditures. Revenue allocations of Measure G do not yet include the fourth quarter; that entry will be made as part of the year-end process. Attachments: 1. Highway 111 Corridor Map 2.Project Activity Report Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community City of La Quinta Design and Development Department Highway 111Corridor Map March 2021 ® Planning Division Legend Highway 111 Area Boundary Phase 1 Demonstration Site Phase 2 Demonstration Site Housing Inventory SitesWashington StreetAdams StreetDune Palms RdJefferson StreetHighway 111 CV Link Westward Ho Dr Avenue 48 BestBuy Kohls Target Walmart Costco StaterBros Lowe's HomeDepot CityProperty ShopoffResidentialProject PostOffice Marshalls Vons Aldi HobbyLobby Okura Smart &Final Mimi'sDealerships PlanetFitness SolaSalons ATTACHMENT 1 ATTACHMENT 1 Page 1 of 37/28/2021 7:31:34 PM Project Activity Report City of La Quinta By Project Number Report Dates: 07/01/2019 - 07/30/2021 201905 Highway 111 Corridor Area Plan Implementation Fund 401 Construction in Process St Improvements Active Project Number Project Name Group Type Status Revenues Account NameAccount Key Category Total Activity -67,691.25201905MGMeasure G Funding Measure G - Measure G Funding ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number -1,980.00MG 201905 HWY 111 CORRIDOR PLANTransfers In 03/31/2020401-0000-49500 -5,006.25MG 201905 HIGHWAY 111 CORRIDOR AREA PLANTransfers In 06/30/2020401-0000-49500 -6,986.25FY 19/20 Total: -11,715.00MG 201905 HIGHWAY 111 CORRIDOR AREA PLANTransfers In 09/30/2020401-0000-49500 -41,035.00MG 201905 HIGHWAY 111 CORRIDOR AREA PLANTransfers In 12/31/2020401-0000-49500 -7,955.00MG 201905 HIGHWAY 111 CORRIDOR AREA PLANTransfers In 03/31/2021401-0000-49500 -60,705.00FY 20/21 Total: Total Revenues:-67,691.25 Expenses Account NameAccount Key Category Total Activity 255,512.09201905DDesign Expense Design - Design Expense ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number 8,290.002019-05 HWY 111 CORRIDOR PROJECT (PLAN&ENG)Design 12/18/2020401-0000-60185 151505GHD INC. 25,600.002019-05 HWY 111 CORRIDOR PROJECT (PLAN&ENG)Design 12/18/2020401-0000-60185 153361GHD INC. 78,461.2502/2021 - HWY 111 PLANNING/ ENGINEERING SVCSDesign04/16/2021401-0000-60185 158460GHD INC. 32,923.7512/2020 - HWY 111 PLANNING/ ENGINEERING SVCSDesign04/16/2021401-0000-60185 155454GHD INC. 75,409.8404/2021 - HWY 111 PLANNING/ENGINEERING SVCSDesign06/11/2021401-0000-60185 161990GHD INC. 34,827.2505/2021 - HWY 111 PLANNING/ENGINEERING SVCSDesign06/25/2021401-0000-60185 163575GHD INC. 255,512.09FY 20/21 Total: 42,228.75201905PProfessional Expense Professional - Professional Expense ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number 1,980.0002/2020 HIGHWAY 111 CORRIDORProfessional Services 03/20/2020401-0000-60103 8 JOB 2019-08NAI CONSULTING INC 825.0003/2020 HIGHWAY 111 CORRIDORProfessional Services 04/24/2020401-0000-60103 9 JOB 2019-08NAI CONSULTING INC 330.0005/2020 HIGHWAY 111 CORRIDORProfessional Services 06/12/2020401-0000-60103 11 JOB 2019-08NAI CONSULTING INC 3,851.2506/2020 HIGHWAY 111 CORRIDORProfessional Services 06/30/2020401-0000-60103 12 JOB 2019-08NAI CONSULTING INC 6,986.25FY 19/20 Total: 9,240.0007/2020 HIGHWAY 111 CORRIDORProfessional Services 09/04/2020401-0000-60103 13 JOB 2019-08NAI CONSULTING INC 2,475.0008/2020 HIGHWAY 111 CORRIDORProfessional Services 09/25/2020401-0000-60103 14 JOB 2019-08NAI CONSULTING INC 2,182.5009/2020 HIGHWAY 111 CORRIDORProfessional Services 10/09/2020401-0000-60103 15 JOB 2019-08NAI CONSULTING INC ATTACHMENT 2 Report Dates: 07/01/2019 - 07/30/2021Project Activity Report Page 2 of 37/28/2021 7:31:34 PM ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number 4,962.5010/2020 HIGHWAY 111 CORRIDORProfessional Services 12/04/2020401-0000-60103 16 JOB 2019-08NAI CONSULTING INC 2,657.50HIGHWAY 111 CORRIDORProfessional Services 01/15/2021401-0000-60103 17 JOB 2019-08NAI CONSULTING INC 720.00HIGHWAY 111 CORRIDORProfessional Services 01/22/2021401-0000-60103 18 JOB 2019-08NAI CONSULTING INC 980.00HIGHWAY 111 CORRIDORProfessional Services 03/05/2021401-0000-60103 19 JOB 2019-08NAI CONSULTING INC 3,597.50HIGHWAY 111 CORRIDORProfessional Services 03/19/2021401-0000-60103 2019-08.20NAI CONSULTING INC 2,072.50HIGHWAY 111 CORRIDORProfessional Services 04/23/2021401-0000-60103 2019-08.21NAI CONSULTING INC 1,657.50HIGHWAY 111 CORRIDORProfessional Services 05/28/2021401-0000-60103 2019-08.22NAI CONSULTING INC 1,850.00HIGHWAY 111 CORRIDORProfessional Services 06/18/2021401-0000-60103 2019-08.23NAI CONSULTING INC 2,847.50HIGHWAY 111 CORRIDORProfessional Services 06/30/2021401-0000-60103 2019-08.24NAI CONSULTING INC 35,242.50FY 20/21 Total: Total Expenses:297,740.84 230,049.59201905 Total: Report Dates: 07/01/2019 - 07/30/2021Project Activity Report Page 3 of 37/28/2021 7:31:34 PM Summary Project Name Project Number Project Summary Total Revenue Total Expense Revenue Over/ (Under) Expenses Highway 111 Corridor Area Plan Implementation201905 67,691.25 297,740.84 -230,049.59 Project Totals:67,691.25 297,740.84 -230,049.59 Group Summary Group Total Revenue Total Expense Revenue Over/ (Under) Expenses Fund 401 Construction in Process 67,691.25 297,740.84 -230,049.59 Group Totals:67,691.25 297,740.84 -230,049.59 Type Summary Type Total Revenue Total Expense Revenue Over/ (Under) Expenses St Improvements 67,691.25 297,740.84 -230,049.59 Type Totals:67,691.25 297,740.84 -230,049.59 POWER POINTS FAC MEETING August 4, 2021 08/04/2021 1 Financial Advisory Commission Meeting 08/04/2021 1 2 08/04/2021 2 Financial Advisory Commission Meeting 08/04/2021 Business Session Item No. 1 Appoint a Financial Advisory Commissioner Chairperson and Vice-Chairperson to Serve for Fiscal Year 2021/22 Past Appointments Fiscal Year Chairperson Vice Chairperson 2016/17 George Batavick Jane Johnson 2017/18 George Batavick W. Richard Mills 2018/19 W. Richard Mills Daniel Twohey 2019/20 W. Richard Mills Daniel Twohey 2020/21 W. Richard Mills Daniel Twohey 3 4 08/04/2021 3 Financial Advisory Commission Meeting 08/04/2021 Department Report Item No. 1 First Quarter 2021 (January-March) Sales Tax Update for the City of La Quinta Top 25 Business Sales Tax Best Buy Circle K Costco Floor & Décor Hideaway Club Hobby Lobby Home Depot Hyundai/Genesis of La Quinta In n Out Burger Kohls La Quinta Chevrolet & Cadillac La Quinta Resort & PGA West Lavender Bistro Lowes Marshalls PGA West Private PGA West Private Clubhouse & Golf Ross Stater Brothers Target TJ Maxx Torre Nissan Tower Mart Vons Walmart Measure G Amazon Fulfillment Services Amazon MFA Best Buy Bestbuy Com CDW Government Circle K Costco Country Club of the Desert Dept. of Motor Vehicles Desert European Motorcars Floor & Décor Home Depot Kohls La Quinta Resort & PGA West Lowes Marshalls Mathis Brothers Furniture PGA West Private PGA West Private Clubhouse & Golf Ross Target TJ Maxx Tower Mart Vons Walmart 5 6 08/04/2021 4 The Financial Advisory Commission Will be having a Special Meeting on October 6, 2021 7