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2021 11 10 FACFINANCIAL ADVISORY COMMISSION AGENDA 1 NOVEMBER 10, 2021 REGULAR MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta REGULAR MEETING WEDNESDAY, NOVEMBER 10, 2021 AT 4:00 P.M. ****************************** SPECIAL NOTICE Teleconferencing and Telephonic Accessibility in Effect Pursuant to Executive Orders N-60-20 and N-08-21 executed by the Governor of California, and subsequently Assembly Bill 361 (AB 361, 2021), enacted 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 public, the Financial Advisory Commission, the City Manager, City Attorney, City Staff, and City Consultants may participate in this special 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 Commission Secretary at JDelgado@LaQuintaCA.gov preferably by 12:00 p.m. on the day of the meeting , and will be distributed to the Commission, incorporated into the agenda packet and public record of the meeting, and will not be read during the meeting unless, upon Financial Advisory Commission agendas and staff www.laquintaca.gov FINANCIAL ADVISORY COMMISSION AGENDA 2 NOVEMBER 10, 2021 REGULAR MEETING the request of the Chair, a brief summary of any public comment is asked to be read, to the extent staff can accommodate such request. 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 *** TELECONFERENCE PROCEDURES *** Verbal public comments via Teleconference members of the public may attend and participate in the meeting by teleconference via Zoom a the 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/they to speak on the item(s) requested. Please note members of the public must unmute themselves when prompted upon being recognized by the Chair, in order to become audible to the Commission and the public. Only one person at a time may speak by teleconference and only after being recognized by the Chair. ZOOM LINK: https://us06web.zoom.us/j/89839984651 Meeting ID: 898 3998 4651 Or join by phone: (253) 215 8782 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 before action 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 FINANCIAL ADVISORY COMMISSION AGENDA 3 NOVEMBER 10, 2021 REGULAR MEETING 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: Anderson, Campbell, Dorsey, Mast, Mills, Way and Chair Batavick 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)]. CONFIRMATION OF AGENDA ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. Welcome Commissioner Mast CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. Approve Meeting Minutes Dated August 4, 2021 2. Approve Meeting Minutes Dated October 6, 2021 3. Receive and File Revenue and Expenditure Report Dated June 30, 2021 4. Receive and File Revenue and Expenditure Report Dated July 31, 2021 BUSINESS SESSION None STUDY SESSION None DEPARTMENTAL REPORTS 1. Second Quarter 2021 (April-June) Sales Tax Update for the City of La Quinta 2. Investment Portfolio Review FINANCIAL ADVISORY COMMISSION AGENDA 4 NOVEMBER 10, 2021 REGULAR MEETING ADJOURNMENT The next regular quarterly meeting for the La Quinta Financial Advisory Commission will be held on February 9, 2022, 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 495 Calle Tampico, and the bulletin boards at 78630 Highway 111, and 51321 Avenida Bermudas, on November 5, 2021. DATED: November 5, 2021 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 contact the Commission Secretary at (760) 777-7150, 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, arrangements should be made in advance by contacting the Commission Secretary at (760) 777-7150. 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 Commission Secretary for distribution. It is requested that this takes 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 Concierge desk at City Hall located at 78495 Calle Tampico, La Quinta, California, 92253, during normal business hours. FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 4 AUGUST 4, 2021 REGULAR MEETING FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, AUGUST 4, 2021 CALL TO ORDER A regular quarterly meeting of the Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chairperson Mills. 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 Anderson, Batavick, Campbell, Dorsey, Way, and Chairperson Mills ABSENT: None VACANCY: One STAFF PRESENT: Interim Finance Director Martinez, Financial Services Analyst Hallick, and Management Assistant Delgado. PLEDGE OF ALLEGIANCE Commissioner Batavick led the audience in the Pledge of Allegiance. The Commission welcomed the new Commissioners and all Commissioners shared a brief introduction of their backgrounds and qualifications. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR ITEMS 1. APPROVE SPECIAL MEETING MINUTES DATED JUNE 2, 2021 CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 AUGUST 4, 2021 REGULAR MEETING Commissioner Mills requested the following revisions to the June 2, 2021 Special Meeting minutes: • Page 3, the first sentence of Paragraph 1 under Commissioners’ Items shall read as follows: “Chair Mills thanked Commissioners Hunter, Rosen, and Twohey for their dedicated public service and commitment to the Commission, and dedicated service to the community.” • Page 4, Paragraph 3 under Commissioners’ Items shall read as follows: “The Commission inquired if the applications submitted to the City by candidates interested in serving on the Commission would be available for review.” Motion – A motion was made and seconded by Commissioners Batavick/Mills to approve Consent Calendar Item No. 1 as amended. Motion failed due to the lack of a quorum: ayes – 2, noes – 0, abstain – 3, absent – 1 (Way). COMMISSIONER WAY JOINED THE MEETING AT 4:19 P.M. 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED APRIL 30, 2021 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MAY 31, 2021 Motion – A motion was made and seconded by Commissioners Way/Anderson to approve Consent Calendar Items Nos. 2 and 3, as submitted. Motion passed: 6 ayes, 0 noes, 1 vacancy. The Commission expressed general consensus to reconsider Consent Calendar Item No. 1 in accordance with Section 7.3 – Reconsideration of the City’s Rules of Procedure for public meetings adopted on June 2, 2015 via Resolution No. 2015-023. 1. Reconsideration – APPROVE SPECIAL MEETING MINUTES DATED JUNE 2, 2021 Motion – A motion was made and seconded by Commissioners Batavick/Mills to approve Consent Calendar Item No. 1 as amended by Commissioner Mills and noted above. Motion passed: ayes – 5, noes – 0, abstain – 1 (Campbell), vacancy – 1. FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 AUGUST 4, 2021 REGULAR MEETING BUSINESS SESSION 1.APPOINT A FINANCIAL ADVISORY COMMISSIONER CHAIRPERSON AND VICE-CHAIRPERSON TO SERVE FOR FISCAL YEAR 2021/22 Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission nominated Commissioners’ Batavick and Mills for Chairperson and Vice-Chairperson. Motion – A motion was made and seconded by Commissioners Campbell/Anderson to appoint Commissioners’ Batavick and Mills to serve as Chairperson and Vice-Chairperson, respectively for fiscal year 2021/22. Motion passed: ayes – 6, noes – 0, vacancy – 1. STUDY SESSION – None DEPARTMENTAL REPORTS All reports are on file in the finance department 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 Chair Mills requested an update on the subcommittee projects list (List) previously distributed to the Commission. Staff provided a verbal update on which subcommittees/projects would be taking place in the next few months and said they would provide the Commission with an updated List by the next Commission meeting. Chair Mills said that on July 15, 2021, Commissioner Batavick and himself met with City Staff to discuss some of the following items: roles and responsibilities of the Commissioners, commission meetings, preparation of meeting agendas, Commission subcommittees, and board and commission terms. Chair Mills inquired about the recruitment for a new Finance Director. Interim Finance Director Martinez said she is currently the acting Finance Director and Rosemary Hallick is the Interim Accounting Manager. Staff said that the Human FINANCIAL ADVISORY COMMISSION MINUTES Page 4 of 4 AUGUST 4, 2021 REGULAR MEETING Resources (HR) Department had recently executed an agreement with a consultant to assist with this executive recruitment; HR’s next step would be to meet with consultant and finalize timeline for the recruitment process; and Interim Finance Director Martinez, Interim Accounting Manager Hallick and Finance staff are covering the increased job responsibilities until the vacancy is filled. Commissioner Batavick inquired on status for in person commission meetings. Staff said the City continues to stay updated following Riverside County recommendations and that due to the current COVID-19 variants circulating, virtual Commission meetings will continue. Staff also mentioned that the City is working on the coordination of the location, new set up process for boards and commission public meetings, and that they would let the Commission know in advance when staff is directed to have in-person commission meetings. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Mills/Dorsey to adjourn this meeting at 5:24 p.m. Motion passed: ayes – 6, noes – 0, vacancy – 1. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 3 OCTOBER 6, 2021 SPECIAL MEETING FINANCIAL ADVISORY COMMISSION SPECIAL MEETING MINUTES WEDNESDAY, OCTOBER 6, 2021 CALL TO ORDER A special meeting of the Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chair Batavick. This meeting was held by teleconference pursuant to Executive Orders N-60- 20 and N-08-21 executed by the Governor of California, and subsequently Assembly Bill 361 (AB 361, 2021), enacted 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.). PRESENT: Commissioners Anderson, Campbell, Mills, Way, and Chairperson Batavick ABSENT: Commissioner Dorsey VACANCY: One STAFF PRESENT: Interim Finance Director Martinez, Financial Services Analyst Hallick, and Management Assistant Delgado PLEDGE OF ALLEGIANCE Commissioner Campbell led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR ITEMS 1. RECEIVE AND FILE THE FOURTH QUARTER FISCAL YEAR 2020/21 TREASURY REPORTS FOR APRIL, MAY, AND JUNE 2021 CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 3 OCTOBER 6, 2021 SPECIAL MEETING Motion – A motion was made and seconded by Commissioners Mills/Way to approve the Consent Calendar, as submitted. Motion passed: ayes – 5, noes – 0, absent – 1 (Dorsey), vacancy – 1. BUSINESS SESSION 1. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO AUDIT AND FORMULATE THE ANNUAL MEASURE G COMPLIANCE REPORT FOR FISCAL YEAR 2020/21 Interim Finance Director Martinez presented the staff report, which is on file in the Finance Department. Chair Batavick shared background on review process and his experience of auditing and formulating the annual Measure G compliance report from prior fiscal years. Commissioner Anderson, Campbell, and Way expressed their willingness to audit and formulate the annual Measure G compliance report for fiscal year 2020/21. Motion – A motion was made and seconded by Commissioners Mills/Campbell to appoint Commissioners Anderson, Campbell, and Way to audit and formulate the annual Measure G compliance report for fiscal year 2020/21. Motion passed: ayes – 5, noes – 0, absent – 1 (Dorsey), vacancy – 1. STUDY SESSION – None DEPARTMENTAL REPORTS 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Interim Finance Director Martinez presented the staff report, which is on file in the Finance Department. Chair Batavick inquired if any upcoming items for review would require a request for proposal (RFP). Interim Finance Director Martinez said once the recruitment for a Finance Director is completed staff would circle back with the Commission if any upcoming items would require an RFP. The Commission inquired on the type of investments made by the City. Financial Services Analyst Hallick said that all investments are federal deposit insured and/or credit union insured and welcomed the Commissioners to send a listing of what investments they would like more detailed information on to address any concerns. FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 3 OCTOBER 6, 2021 SPECIAL MEETING The Commission and staff discussed process and timeline for recruitment for the Finance Director position. COMMISSIONERS’ ITEMS Commissioner Way inquired on when the Commission would be able to meet in person. Staff said with the recent COVID-19 exposure at the joint Council and Planning Commission meeting on Tuesday, September 28, 2021, staff currently awaits direction on when in person Commission meetings would take place as well as the City continues to follow recommendations from the county and state. Chair Mills asked for update on the vacant seat for the Commission. Staff replied one application has been received, application deadline is October 11, and that interviews are scheduled to take place at the Council meeting on Tuesday, October 19. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Mills/Campbell to adjourn this meeting at 4:32 p.m. Motion passed: ayes – 5, noes – 0, absent – 1 (Dorsey), vacancy – 1. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 10, 2021 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JUNE 30, 2021 RECOMMENDATION Receive and file revenue and expenditure report dated June 30, 2021. EXECUTIVE SUMMARY • The report summarizes the City’s period and year-to-date (YTD) revenues and expenditures for June 2021 (Attachment 1). • Percentage of budget utilized numbers are not final until all adjusting entries are made. The City’s Annual Comprehensive Financial Report, published annually in December, is the most accurate reflection of audited numbers. • 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 Capital Improvement Project carryovers, 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. CONSENT CALENDAR ITEM NO. 3 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. *Percentages shown above are subject to year-end adjusting entries and are not final. Audited numbers will be published in the Annual Comprehensive Financial Report in December. 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 MTD YTD YTD Percent of Budget General Fund 22,557,854$ 70,305,823$ 121.88% All Funds 40,547,129$ 129,715,202$ 74.27% MTD YTD YTD Percent of Budget General Fund 12,602,928$ 46,746,637$ 69.69% Payroll - General Fund 1,934,441$ 10,258,875$ 89.01% All Funds 17,400,606$ 109,802,386$ 58.03% June Revenues June Expenditures General Fund Non-General Fund Gov't Revenue- ARP Funds 4,993,504$ County Government Tax Revenue for Debt Service 13,513,519$ Fire Service Credit 4,358,337$ County Government Revenue -Library/Museum 1,594,046$ Measure G Sales Tax 3,450,033$ County Sales Tax (Measure A)533,978$ Sales Tax 3,125,800$ Surface Transportation Program Grant 450,001$ Transient Occupancy (Hotel) Tax 2,697,409$ Technology Support Internal Service Fund (1)423,875$ General Fund Non-General Fund Sheriff Contract (April to June)5,688,083$ Capital Improvement Program (CIP) - Construction(2)2,554,471$ Fire Service and Ladder Truck - Q3 & Q4 2,939,925$ Library Operations 643,344$ Marketing and Tourism Promotions 130,656$ SilverRock Maintenance 238,330$ Liability Insurance & Claims (3)115,000$ CIP - Design 167,239$ PM10 Dust Control 114,103$ Museum Operations 97,500$ Top Five Revenue/Income Sources for June Top Five Expenditures/Outlays for June (1)Internal Service Funds are used to account for activities involved in rendering services to departments within the City; quarterly journal entries move revenue into these funds. (2) CIP Construction: SilverRock Way; Washington & Fred Waring triple left; public safety cameras; Fire Station 70; X-Park. (3) These charges in the General Fund represent quarterly contributions to the Insurance Internal Service Fund. 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 June 30, 2021 For Fiscal: 2020/21 Period Ending: 06/30/2021 10/25/2021 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 70,305,82322,557,85450,726,100 57,685,534 12,620,289 121.88 % 201 - GAS TAX FUND 1,694,021325,0571,778,400 1,791,800 -97,779 94.54 % 202 - LIBRARY & MUSEUM FUND 2,909,5681,443,6202,808,500 2,807,200 102,368 103.65 % 203 - PUBLIC SAFETY FUND (MEASURE G)319,806-25,08710,000 342,000 -22,194 93.51 % 210 - FEDERAL ASSISTANCE FUND 287,393111,627141,900 147,472 139,921 194.88 % 212 - SLESA (COPS) FUND 155,64229,545101,000 101,000 54,642 154.10 % 215 - LIGHTING & LANDSCAPING FUND 1,848,46629,1071,877,000 1,857,100 -8,634 99.54 % 220 - QUIMBY FUND 35,41524,88580,000 80,000 -44,585 44.27 % 221 - AB 939 - CALRECYCLE FUND 57,39114,89676,000 76,000 -18,609 75.51 % 223 - MEASURE A FUND 1,915,071528,6271,319,000 1,519,000 396,071 126.07 % 224 - TUMF FUND -5,275-4,89900 -5,275 0.00 % 225 - INFRASTRUCTURE FUND -192-401200200 -392 95.99 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)7,135-2,73312,100 19,700 -12,565 36.22 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)3,19405,000 5,000 -1,806 63.88 % 230 - CASp FUND, AB 1379 16,8361,05918,200 18,200 -1,364 92.51 % 231 - SUCCESSOR AGCY PA 1 RORF 20,031,21512,750,91020,539,264 20,539,264 -508,049 97.53 % 235 - SO COAST AIR QUALITY FUND 52,82426,62953,000 53,000 -176 99.67 % 237 - SUCCESSOR AGCY PA 1 ADMIN 8,636-3,88513,505 13,505 -4,869 63.95 % 241 - HOUSING AUTHORITY 2,154,88044,482513,300 1,901,756 253,124 113.31 % 243 - RDA LOW-MOD HOUSING FUND 296,988267,03035,000 35,000 261,988 848.54 % 244 - HOUSING GRANTS (Multiple)00060,000 -60,000 0.00 % 247 - ECONOMIC DEVELOPMENT FUND 449,549-85,31140,000 649,100 -199,551 69.26 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)1,997-73,645200,000 201,000 -199,003 0.99 % 250 - TRANSPORTATION DIF FUND 665,95748,257380,000 380,000 285,957 175.25 % 251 - PARKS & REC DIF FUND 322,13344,470304,000 304,000 18,133 105.96 % 252 - CIVIC CENTER DIF FUND 192,41823,296110,000 112,000 80,418 171.80 % 253 - LIBRARY DEVELOPMENT DIF 61,5319,52845,000 45,000 16,531 136.74 % 254 - COMMUNITY & CULTURAL CENTERS DIF 141,19318,96216,500 76,500 64,693 184.57 % 255 - STREET FACILITY DIF FUND 3,752-80817,000 2,000 1,752 187.60 % 256 - PARK FACILITY DIF FUND 214-1187,100 500 -286 42.89 % 257 - FIRE PROTECTION DIF 59,2986,04655,500 55,500 3,798 106.84 % 270 - ART IN PUBLIC PLACES FUND 128,766-10,244111,000 121,000 7,766 106.42 % 275 - LQ PUBLIC SAFETY OFFICER 1,547-9822,600 2,600 -1,053 59.52 % 299 - INTEREST ALLOCATION FUND -2,427211,15400 -2,427 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 -1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 16,075,8541,235,18919,058,300 74,850,951 -58,775,097 21.48 % 405 - SA PA 1 CAPITAL IMPRV FUND -92,681-128,914100,000 100,000 -192,681 92.68 % 501 - FACILITY & FLEET REPLACEMENT 861,069148,633902,500 902,500 -41,431 95.41 % 502 - INFORMATION TECHNOLOGY 1,732,997400,4461,721,500 1,747,300 -14,303 99.18 % 503 - PARK EQUIP & FACILITY FUND 163,557-25,519245,000 245,000 -81,443 66.76 % 504 - INSURANCE FUND 932,420231,439928,500 928,500 3,920 100.42 % 601 - SILVERROCK RESORT 4,384,095152,2003,882,100 4,182,100 201,995 104.83 % 602 - SILVERROCK GOLF RESERVE 5,598-464,500 4,500 1,098 124.40 % 760 - SUPPLEMENTAL PENSION PLAN 3,865-2,1256,500 6,500 -2,635 59.46 % 761 - CERBT OPEB TRUST 337,718117,09660,000 75,000 262,718 450.29 % 762 - PARS PENSION TRUST 1,189,943109,807300,000 600,000 589,943 198.32 % Report Total:40,547,129 129,715,202108,606,169 174,645,382 -44,930,180 74.27 % 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: 06/30/2021 10/25/2021 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 46,746,63712,602,92847,911,600 67,075,553 20,328,916 69.69 % 201 - GAS TAX FUND 1,069,762157,6891,775,300 2,288,769 1,219,007 46.74 % 202 - LIBRARY & MUSEUM FUND 2,048,083884,4941,715,100 2,318,100 270,017 88.35 % 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 101,52932,694100,000 100,000 -1,529 101.53 % 215 - LIGHTING & LANDSCAPING FUND 2,010,646299,1201,876,600 2,126,600 115,954 94.55 % 220 - QUIMBY FUND 520,886002,781,625 2,260,739 18.73 % 221 - AB 939 - CALRECYCLE FUND 53,93120,641100,000 250,000 196,069 21.57 % 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)36,24516,61612,000 19,600 -16,645 184.92 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)6,01805,000 5,000 -1,018 120.36 % 230 - CASp FUND, AB 1379 3,3119334,400 4,400 1,089 75.25 % 231 - SUCCESSOR AGCY PA 1 RORF 17,397,2575,6238,405,468 8,405,468 -8,991,789 206.98 % 235 - SO COAST AIR QUALITY FUND 57,41421,38842,200 48,900 -8,514 117.41 % 237 - SUCCESSOR AGCY PA 1 ADMIN 14,2551,50013,505 13,505 -750 105.55 % 241 - HOUSING AUTHORITY 1,096,775104,896822,300 1,270,062 173,287 86.36 % 243 - RDA LOW-MOD HOUSING FUND 300,0000250,000 300,000 0 100.00 % 244 - HOUSING GRANTS (Multiple)33,1086,331060,000 26,892 55.18 % 247 - ECONOMIC DEVELOPMENT FUND 1,494,374010,000 1,630,500 136,126 91.65 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)5,813,436-303,3606,185,000 6,185,000 371,564 93.99 % 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 15,1332,99030,000 30,000 14,867 50.44 % 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 63,3450110,000 725,700 662,355 8.73 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 1,1001,1001,100 1,100 0 100.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 18,851,0132,833,88619,058,300 71,638,745 52,787,732 26.31 % 405 - SA PA 1 CAPITAL IMPRV FUND 3,559,470006,139,155 2,579,685 57.98 % 501 - FACILITY & FLEET REPLACEMENT 524,24490,947902,500 1,144,464 620,220 45.81 % 502 - INFORMATION TECHNOLOGY 1,078,91540,6101,684,200 1,924,200 845,285 56.07 % 503 - PARK EQUIP & FACILITY FUND 141,7772,000595,000 682,986 541,209 20.76 % 504 - INSURANCE FUND 865,011-4,978827,500 904,500 39,489 95.63 % 601 - SILVERROCK RESORT 3,895,325577,1963,881,500 3,881,500 -13,825 100.36 % 760 - SUPPLEMENTAL PENSION PLAN 12,833012,850 12,850 17 99.87 % 761 - CERBT OPEB TRUST 1,6083751,500 1,500 -108 107.18 % 762 - PARS PENSION TRUST 57,7594,98752,000 52,000 -5,759 111.07 % Report Total:17,400,606 109,802,386100,083,723 189,217,741 79,415,354 58.03 % 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 3 of 3 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: November 10, 2021 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JULY 31, 2021 RECOMMENDATION Receive and file revenue and expenditure report dated July 31, 2021. EXECUTIVE SUMMARY • The report summarizes the City’s year-to-date (YTD) revenues and period expenditures for July 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 2021 for fiscal year 2021/22. Current Total Budget – represents original adopted budgets plus any Council approved budget amendments from throughout the year. The 2020/21 operating and Capital Improvement Project carryovers to 2021/22 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. 4 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 July 31, 2021 MTD YTD YTD Percent of Budget General Fund (GF)525,729$ 525,729$ 0.89% All Funds 1,171,291$ 1,171,291$ 1.31% MTD YTD YTD Percent of Budget General Fund 664,170$ 664,170$ 1.20% Payroll (GF)356,098$ 356,098$ 3.14% All Funds 1,365,677$ 1,365,677$ 1.58% July Revenues July Expenditures General Fund Non-General Fund Public Works Permits 94,418$ Developer Impact Fees- Transportation 165,925$ STVR Registration Fee 90,950$ Gas Tax 105,414$ Building Plan Check Fees 74,638$ Non-allocated Interest (Pension Trust)95,647$ Building Permits 53,278$ SilverRock Greens Fees 79,022$ Administrative Citations 48,632$ Allocated Interest 60,519$ General Fund Non-General Fund Membership Dues(1)67,430$ Software Licenses(2)200,630$ Visit Greater Palm Springs 53,349$ Earthquake Insurance Premium 108,232$ Marketing and Tourism Promotions 52,746$ SilverRock Maintenance 95,079$ Parks Landscape Maintenance 48,537$ Lighting & Landscape Maintenance 65,332$ Contract Services- Administrative 10,885$ IT Technical - Phone Sysytem 33,601$ Top Five Revenue/Income Sources for July Top Five Expenditures/Outlays for July (1)Coachella Valley Association of Governments (CVAG), Southern California Association of Governments (SCAG). (2)Annual subscription fees for Tyler (Finance/HR Depts.), Granicus (City website), Office 365 licenses, GovInvest (pension software) and Laserfiche. For Fiscal: 2021/22 Period Ending: 07/31/2021 10/26/2021 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 525,729525,72958,804,210 58,804,210 -58,278,481 0.89 % 201 - GAS TAX FUND 105,414105,4141,965,880 1,965,880 -1,860,466 5.36 % 202 - LIBRARY & MUSEUM FUND 52522,850,700 2,850,700 -2,850,648 0.00 % 203 - PUBLIC SAFETY FUND (MEASURE G)005,000 5,000 -5,000 0.00 % 210 - FEDERAL ASSISTANCE FUND 00151,000 151,000 -151,000 0.00 % 212 - SLESA (COPS) FUND 00101,000 101,000 -101,000 0.00 % 215 - LIGHTING & LANDSCAPING FUND 002,274,700 2,274,700 -2,274,700 0.00 % 221 - AB 939 - CALRECYCLE FUND -6,187-6,18770,000 70,000 -76,187 8.84 % 223 - MEASURE A FUND 001,567,000 1,567,000 -1,567,000 0.00 % 225 - INFRASTRUCTURE FUND 00100100 -100 0.00 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)-9,750-9,75012,000 12,000 -21,750 81.25 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)005,000 5,000 -5,000 0.00 % 230 - CASp FUND, AB 1379 1,5601,56019,200 19,200 -17,640 8.13 % 235 - SO COAST AIR QUALITY FUND 0052,800 52,800 -52,800 0.00 % 241 - HOUSING AUTHORITY 24,27924,279871,400 871,400 -847,121 2.79 % 243 - RDA LOW-MOD HOUSING FUND 0035,000 35,000 -35,000 0.00 % 247 - ECONOMIC DEVELOPMENT FUND 0030,000 30,000 -30,000 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)00201,000 201,000 -201,000 0.00 % 250 - TRANSPORTATION DIF FUND 165,925165,925428,000 428,000 -262,075 38.77 % 251 - PARKS & REC DIF FUND 31,59031,590351,000 351,000 -319,410 9.00 % 252 - CIVIC CENTER DIF FUND 26,94526,945152,000 152,000 -125,055 17.73 % 253 - LIBRARY DEVELOPMENT DIF 5,9555,95550,000 50,000 -44,045 11.91 % 254 - COMMUNITY & CULTURAL CENTERS DIF 14,34014,34072,000 72,000 -57,660 19.92 % 255 - STREET FACILITY DIF FUND 4,3274,32700 4,327 0.00 % 257 - FIRE PROTECTION DIF 9,4309,43066,000 66,000 -56,570 14.29 % 270 - ART IN PUBLIC PLACES FUND 18,80218,802130,000 130,000 -111,198 14.46 % 275 - LQ PUBLIC SAFETY OFFICER 002,600 2,600 -2,600 0.00 % 299 - INTEREST ALLOCATION FUND 60,51960,51900 60,519 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 -1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 009,894,806 9,894,806 -9,894,806 0.00 % 501 - FACILITY & FLEET REPLACEMENT 001,222,750 1,222,750 -1,222,750 0.00 % 502 - INFORMATION TECHNOLOGY 1,8751,8751,786,700 1,786,700 -1,784,825 0.10 % 503 - PARK EQUIP & FACILITY FUND 00400,000 400,000 -400,000 0.00 % 504 - INSURANCE FUND 001,010,800 1,010,800 -1,010,800 0.00 % 601 - SILVERROCK RESORT 94,84094,8404,157,693 4,157,693 -4,062,853 2.28 % 602 - SILVERROCK GOLF RESERVE 0067,000 67,000 -67,000 0.00 % 760 - SUPPLEMENTAL PENSION PLAN 006,000 6,000 -6,000 0.00 % 761 - CERBT OPEB TRUST 0080,000 80,000 -80,000 0.00 % 762 - PARS PENSION TRUST 95,64795,647700,000 700,000 -604,353 13.66 % Report Total:1,171,291 1,171,29189,594,439 89,594,439 -88,423,148 1.31 % ATTACHMENT 1 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. For Fiscal: 2021/22 Period Ending: 07/31/2021 10/26/2021 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 664,170664,17055,162,726 55,162,726 54,498,556 1.20 % 201 - GAS TAX FUND 2,5712,5712,007,500 2,007,500 2,004,929 0.13 % 202 - LIBRARY & MUSEUM FUND 6,7566,7564,306,510 4,306,510 4,299,754 0.16 % 210 - FEDERAL ASSISTANCE FUND 00148,350 148,350 148,350 0.00 % 212 - SLESA (COPS) FUND 00100,000 100,000 100,000 0.00 % 215 - LIGHTING & LANDSCAPING FUND 89,25889,2582,257,400 2,257,400 2,168,142 3.95 % 221 - AB 939 - CALRECYCLE FUND 00150,000 150,000 150,000 0.00 % 223 - MEASURE A FUND 001,220,500 1,220,500 1,220,500 0.00 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)0012,000 12,000 12,000 0.00 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)005,000 5,000 5,000 0.00 % 230 - CASp FUND, AB 1379 005,600 5,600 5,600 0.00 % 235 - SO COAST AIR QUALITY FUND 0042,500 42,500 42,500 0.00 % 241 - HOUSING AUTHORITY 22,84822,8481,542,200 1,542,200 1,519,352 1.48 % 243 - RDA LOW-MOD HOUSING FUND 00250,000 250,000 250,000 0.00 % 247 - ECONOMIC DEVELOPMENT FUND 0021,500 21,500 21,500 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)0020,000 20,000 20,000 0.00 % 250 - TRANSPORTATION DIF FUND 00604,500 604,500 604,500 0.00 % 253 - LIBRARY DEVELOPMENT DIF 0030,000 30,000 30,000 0.00 % 254 - COMMUNITY & CULTURAL CENTERS DIF 00125,000 125,000 125,000 0.00 % 270 - ART IN PUBLIC PLACES FUND 00127,000 127,000 127,000 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 4,5344,5349,894,806 9,894,806 9,890,272 0.05 % 501 - FACILITY & FLEET REPLACEMENT 24,03924,0391,222,750 1,222,750 1,198,711 1.97 % 502 - INFORMATION TECHNOLOGY 278,865278,8651,786,700 1,786,700 1,507,835 15.61 % 503 - PARK EQUIP & FACILITY FUND 00255,000 255,000 255,000 0.00 % 504 - INSURANCE FUND 110,032110,032936,800 936,800 826,768 11.75 % 601 - SILVERROCK RESORT 157,586157,5864,161,262 4,161,262 4,003,676 3.79 % 760 - SUPPLEMENTAL PENSION PLAN 0012,850 12,850 12,850 0.00 % 761 - CERBT OPEB TRUST 001,500 1,500 1,500 0.00 % 762 - PARS PENSION TRUST 5,0195,01952,000 52,000 46,981 9.65 % Report Total:1,365,677 1,365,67786,463,054 86,463,054 85,097,377 1.58 % 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 DEPARTMENT REPORT TO: Members of the Financial Advisory Commission FROM: Rosemary Hallick, Financial Services Analyst DATE: November 10, 2021 SUBJECT: SECOND QUARTER 2021 (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 to June 2021. • La Quinta’s overall adjusted sales tax receipts for major industry groups increased 58.2%, which compares to Riverside County at 41.8% and the state at 37.3%. The unusually large increases are a direct effect of the COVID-19 pandemic lockdowns in Q2 2020, as well as measures the state put in place to assist businesses (such as delayed filings with no penalties). • The City’s sales-per-capita was higher than both the county and state averages. • General consumer goods (such as department stores) made up 36% of sales tax revenue and 41% of Measure G revenue. • Autos and transportation made up 10% of sales tax revenue and 15% of Measure G revenue. • The City continues to benefit from increased online purchasing in the form of an increase in the County pool share, which was 17% of our sales tax revenue. DEPARTMENTAL REPORT ITEM NO. 1 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 conservatively forecast based on known information as of Spring 2020, and was adjusted twice throughout the year to reflect actual incoming tax receipts. Fiscal year sales tax collections came in above budget; the chart below shows collections through June 2021 (unaudited). Attachment 1: HdL Q2 Sales Tax Update Quarter Payment Bradley Burns 33060 Measure G 520 MG % of BB % change from LY 3 July 2020 Advance 693,799$ 795,453$ 114.65%2.07% 3 August 2020 advance 892,482$ 1,097,718$ 123.00%13.51% 3 September 2020 3rd Qtr payment 553,026$ 612,060$ 110.67%30.88% 3 Total 2020 2,139,306$ 2,505,231$ 117.10%13.21% 4 October 2020 advance 925,973$ 1,035,956$ 111.88%8.43% 4 November 2020 advance 1,059,267$ 1,209,773$ 114.21%12.18% 4 December 2020 4th Qtr payment 732,977$ 1,097,653$ 149.75%-11.29% 4 Total 2020 2,718,217$ 3,343,381$ 123.00%2.82% 1 January 2021 advance 865,620$ 1,034,072$ 119.46%2.84% 1 February 2021 advance 1,212,685$ 1,336,732$ 110.23%24.62% 1 March 2021 1st Qtr payment 667,531$ 924,940$ 138.56%187.29% 1 Total 2021 2,745,837$ 3,295,744$ 120.03%35.85% 2 April 2021 advance 793,656$ 956,628$ 120.53%11.47% 2 May 2021 advance 1,285,678$ 1,463,704$ 113.85%25.69% 2 June 2021 2nd Qtr payment 1,046,466$ 1,029,702$ 98.40%122.53% 2 Total 2021 3,125,800$ 3,450,033$ 110.37%40.19% FY 20/21 Total*10,729,160$ 12,594,389$ 117.38% FY 20/21 Budget 9,428,700$ 10,617,200$ Variance 1,300,460$ 1,977,189$ *Numbers subject to final audit www.hdlcompanies.com | 888.861.0220 Q2 2020* Q2 2021* Legend $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 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 Fuel and Service Stations Food and Drugs Business and Industry TOP 25 PRODUCERSCITY OF LA QUINTA HIGHLIGHTS Published by HdL Companies in Fall 2021 Arco AM PM Best Buy Circle K Cliffhouse Costco Floor & Decor Outlets G & M Oil Genesis/Hyundai of La Quinta 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 Target TJ Maxx Torre Nissan Tower Mart Vons Walmart Supercenter SALES TAX UPDATE CITY OF LA QUINTA 2Q 2021 (APRIL - JUNE) La Quinta’s receipts from April through June were 47.6% above the second sales period in 2020. Excluding reporting aberrations, actual sales were up 58.2%. The restaurant-hotel sector has posted substantial increases, despite impacts from the COVID-19 Delta variant and labor shortages. General consumer goods saw positive growth in 2Q21 as consumers began to return to in-person shopping, work, and leisure activities. Chip shortages, low inventory and factory shutdown combined with high demand drove up prices for the auto-transportation industry. Consumers are still interested in home improvements projects, even as lumber prices soared 300% above its pre- pandemic price tag in 2Q21. The loosening of COVID restrictions in recent months has led to a rapid recovery in global demand for crude oil, resulting in higher prices at the pump. Food prices will continue to rise as suppliers struggled with shortages, transportation issues, weather, and labor shortages. The City’s share of the countywide use tax pool increased 23.0% when compared to the same period in the prior year. Measure G, the City’s voter- approved transactions and use tax, brought in an additional $3,381,929 in revenue. TOTAL: 52.2% $3,381,929 Measure G TOTAL:$ 2,935,244 58.2% 41.8% 37.3% COUNTY STATE LA QUINTA 2Q2021 ATTACHMENT 1 TOP NON-CONFIDENTIAL BUSINESS TYPES Q2 '21*La QuintaBusiness Type Change Change ChangeCountyHdL State 130.5%147.4%175.0% 208.3 Casual Dining 73.9%78.5%78.9% 122.2 Service Stations 100.4%116.6%171.3% 111.1 Electronics/Appliance Stores 385.5%282.5%223.1% 104.2 Leisure/Entertainment 28.8%27.0%35.0% 83.3 Quick-Service Restaurants 230.5%254.4%264.3% 80.4 Family Apparel -0.9%3.9%1.0% 71.7 Grocery Stores 67.7%91.3%94.6% 66.4 Specialty Stores 88.5%92.9%154.5% 65.3 Home Furnishings 43.6%41.9%44.0% 36.5 Fast-Casual Restaurants *Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars REVENUE BY BUSINESS GROUP La Quinta This Fiscal Year* 9% Others 17% Pools 16% Restaurants 10% Autos/Trans. 12% Building 36% Cons.Goods *ADJUSTED FORECONOMIC DATA SALES TAX UPDATECITY OF LA QUINTA2Q 2021 STATEWIDE RESULTS The local one cent sales and use tax from sales occurring April through June, was 37% higher than the same quarter one year ago after factoring for accounting anomalies and back payments from previous quarters. The 2nd quarter of 2020 was the most adversely impacted sales tax period related to the Covid-19 pandemic and Shelter- In-Place directive issued by Governor Newsom. The 2Q21 comparison quarter of 2Q20 was the lowest since 2Q14 due to indoor dining restrictions at most restaurants; non-essential brick and mortar store closures; and employee remote/work from home options which significantly reduced commuting traffic and fuel sales. Therefore, similar to the 1st quarter 2020 comparison, dramatic percentage gains for 2Q21 were anticipated and materialized. Up to this point through California’s recovery, we’ve seen some regions experience stronger gains than others. However, with the latest data and the depths of declines in the comparison period, statewide most regions saw very similar growth. Within the results, prolonged gains by the auto-transportation and building- construction industries generated higher receipts. Although the explosion of sales by new and used car dealers has come as welcome relief, the latest news of inventories being stretched thin due to the micro processing chip issues earlier in the year may result in a headwind into 2022. Conversely for the building-construction group, as housing prices in many markets increased over the last year, sustained available homeowner and investor equity is in place for the foreseeable future. Receipts from general consumer goods marked a steady and expected come back, led by family apparel, jewelry and home furnishing stores. When combined with solid greater economic trends, this is a welcome sign for many companies as a lead up to the normal holiday shopping period later this calendar year. As consumers flock back into retail locations and with AB 147 fully implemented, growth from the county use tax pools - largely enhanced by out-of-state online sales activity - returned to more traditional gains of 9%. These results also included the reallocation of tax dollars previously distributed through the countywide pools to specific local jurisdictions that operate in-state fulfillment centers. Thus, the business and industry category, where fulfillment centers, medical- biotech vendors and garden-agricultural supplies are shown, jumped 26%. In June, many restaurants reopened indoor dining. Given consumer desires to eat out and beautiful spring weather, all categories experienced a strong, much-needed rebound. However, labor shortages and a rise in menu prices continue to be a concern. Looking ahead, sustained sales tax growth is still anticipated through the end of the 2021 calendar year. Inflationary effects are showing up in the cost of many taxable products. Pent up demand for travel and experiences, the return of commuters with more costly fuel, and labor shortages having upward pressure on prices may begin to consume more disposable income and tighten growth by the start of 2022. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Members of the Financial Advisory Commission FROM: Rosemary Hallick, Financial Services Analyst DATE: November 10, 2021 SUBJECT: INVESTMENT PORTFOLIO REVIEW The City’s Investment Portfolio is managed with three key tenets in mind – safety, liquidity, and yield. As required by California Government Code (Code) §53600.5, “the primary objective of the trustee shall be to safeguard the principal of the funds under its control, the secondary objective shall be to meet liquidity needs and the third objective shall be to achieve a return on funds under its control”. The City’s Investment Policy (Policy) reiterates these directives. The Code is fairly restrictive in that allowable investments are confined to a narrow band of market securities such as treasuries, agencies, municipal bonds, commercial paper, corporate notes, etc. The Policy does not place further restrictions upon the types of allowable investments, and generally follows the Code. The Code and Policy allow for investment in negotiable certificates of deposit (CDs), “issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank” §53601(i). These negotiable CDs differ from bank CDs, in that they are purchased through brokers and traded on exchanges similar to other types of bonds. They are fully insured by either the Federal Deposit Insurance Corporation (FDIC), or in the case of credit unions by the National Credit Union Share Insurance Fund administered by the National Credit Union Association (NCUA). The City is only able to purchase these types of CDs when they are offered and available on the open market, and purchases are limited to under $250,000 per bank in order to be fully covered by FDIC or NCUA insurance. Investments must meet Code and Policy guidelines at the time of purchase. Additionally, the City’s portfolio is periodically reviewed by staff, and any securities no longer in compliance are evaluated in order to determine if any action should be taken (such as a sale of that security). The City’s portfolio was also recently reviewed by one of our brokerage firms. At this time, the portfolio is in compliance with state Code and the City’s Policy, and staff will continue to manage the portfolio within these guidelines along with the mandated goals of safety, liquidity, and yield. DEPARTMENTAL REPORT ITEM NO. 2 POWER POINTS FAC MEETING NOVEMBER 10, 2021 11/10/21 1 Financial Advisory Commission Meeting 11/10/2021 1 2 11/10/21 2 The Financial Advisory Commission’s Next Regular Quarterly Meeting is on February 9, 2022 3