2020/21 Measure G Sales Tax Annual Report
ANNUAL MEASURE G SALES TAX OVERSIGHT REPORT FOR
FISCAL YEAR ENDED JUNE 30, 2021
OVERVIEW
The Financial Advisory Commission (FAC) provides oversight of Measure G tax
revenue. This fifth Annual Measure G Sales Tax Oversight Report covers the
fiscal year beginning July 1, 2020 through June 30, 2021. Exhibit A includes
a detailed summary of all Measure G activity.
Measure G is a 1% transactions tax applied to sales of taxable goods and is
part of the overall 8.75% sales tax rate in the City. It can apply to goods
transferred at the point of sale (businesses within La Quinta City limits), but
can also apply to goods that are purchased in other jurisdictions that are
delivered to addresses within the City.
Measure G revenue continues to help La Quinta thrive while focusing on the
future financial health of the City. The funds assist with bringing the Sacred
Values of La Quinta to fruition now and moving forward: Health and Wellness,
High Quality Aesthetics, a Vibrant and Safe Community, a Visually Beautiful
City and Cultural Diversity. Measure G ensures La Quinta will continue to be
“The Gem of the Desert” for many years to come.
REPORT HIGHLIGHTS
• Since inception, over $19.6 million or 43% of Measure G funds have
been allocated to improving citywide infrastructure and public
recreational facilities.
• Public safety services are a priority of La Quinta and have been
supported with 23% of Measure G funds.
• Fiscally responsible budgeting, prudent long-term financial projections,
funds oversight, and financial transparency have strengthened the
City’s reserves since the implementation of Measure G in April 2017.
FISCAL YEAR 2020/21 REVENUES
Total Measure G sales tax revenue for fiscal year 2020/21 was $12,594,389,
which was greater than initially anticipated when budgeted. Despite some
business activity being restricted due to COVID-19, discretionary income that
might have been spent on services was funneled to goods purchases. Coupled
with increases in income that were the result of economic stimulus payments,
this led to higher spending on such purchases as home office supplies,
furniture, electronics, and home improvements, as well as increases in online
spending for general consumables. Retailers that were able to offer ship-to-
home, ship-to-store, or buy-online-pick-up-locally in general benefitted from
stay-at-home orders.
REVENUES SINCE INCEPTION
The chart below summarizes Measure G revenue received from fiscal years
2016/17 to 2020/21. Revenue received in 2019/20 was lower than the
previous year due to COVID-19 pandemic impacts, such as the closure of
businesses deemed ‘non-essential’ by statewide orders. However, revenue
rebounded in 2020/21 due to the factors noted above, as well as the general
reopening of the economy.
FISCAL YEAR 2020/21 USES
The fiscal year 2020/21 operational expenses and capital improvements were
prioritized, and the budget included a prudent reserve allocation for
operational flexibility. The impacts of COVID-19 did not alter essential funding
for public safety or capital projects. By allocating some revenue to reserves,
the City is able to maintain ongoing service levels, while also being prepared
in the event of any unforeseen decreases in revenues as were experienced in
2019/20.
USES SINCE INCEPTION
Each year in January, the City hosts a community workshop to either affirm
or determine the next year’s budget priorities. Staff then evaluates funding
options such as grants, interagency cost sharing, or use of reserves. Public
safety services have been a community priority since before Measure G, and
with the support of this additional revenue, the City has been able to maintain
the public safety service levels the community desires.
The chart below summarizes the uses, since the inception, of Measure G funds.
The majority ($19.6 million, or 43%) of these funds are for projects to improve
citywide infrastructure and public recreational facilities.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2016/17 2017/18 2018/19 2019/20 2020/21
Revenues Since Inception
$45,293,340
• Public Safety use shows the City’s continuing commitment to provide all
residents with a safe living environment.
• Infrastructure improvement projects have included numerous road
repairs, street striping projects, drainage improvements to avoid street
flooding, an investment in Highway 111 (a crucial commercial corridor
for our City where a majority of sales taxes are generated), an overhaul
of landscape medians north of Highway 111, and the design of an
updated corporate yard administrative and crew quarters.
• Recreation projects have included funding for the new X-Park adjacent
to the La Quinta high school, the SilverRock event site, and the design
of a new future Village Art Plaza Promenade connected to the La Quinta
Museum.
• Measure G reserves reflect fiscal responsibility and allow for operational
flexibility by ensuring cash is available for public safety services and
capital improvement projects when they are most efficient to complete.
The chart below summarizes citywide infrastructure improvements and
recreational projects, totaling $19,619,682, funded with Measure G revenues.
MEASURE G BACKGROUND AND COMPLIANCE SUMMARY
Voters passed Ballot Measure G in November 2016. Measure G provides a
permanent one percent transaction and use tax, effective April 1, 2017, which
is fully allocated to the City of La Quinta and protected from State takeaways.
All Measure G revenues shall be used in accordance with the ballot measure
for costs including police protection, projects such as parks, streets,
landscaping, and flood mitigation, programs attracting businesses,
youth/senior services, sports recreation programs, and preserving property
values and quality of life.
This report confirms all Measure G tax revenues are properly recorded and are
being used in accordance with the ballot measure.
Prior oversight reports and information on Measure G are located online at
https://www.laquintaca.gov/business/tax-measure. Questions regarding this
report or the use of Measure G funds may be directed to the Finance
Department by calling 760-777-7150 or by email at finance@laquintaca.gov.
Exhibit A
Fiscal Year (FY)
REVENUES
2016/17 Actual 1,462,650$
2017/18 Actual 9,967,657
2018/19 Actual 10,958,118
2019/20 Actual 10,310,526
2020/21 Actual 12,594,389
TOTAL 45,293,340$
Year
Earned
Reserve
Allocation
Year Operational Capital Reserves Total by Year
2016/17 Eisenhower Dr. Retention Basin 201704MG 750,000
Measure G Reserves 16/17 (X-Park Funding) 151609MG 712,650 - 1,462,650
2017/18 Public Safety Fund 300,000
North La Quinta Landscape Improvements 201603MG 1,802,576
Citywide Drainage Enhancements 151612MG 2,407,373
La Quinta Village Road Diet Project 151603MG 1,972,158
2018/19 X-Park Funding 151609MG 147,350
2019/20 Alongi Building Improvements 800,000
2019/20 SilverRock Event Site 201608MG 321,900
2020/21 SilverRock Event Site 201608MG 244,700
2020/21 Alongi Building at SilverRock Event Site 160,000
2020/21 SilverRock Event Site 201608MG 290,000
2020/21 SilverRock Event Site Retention Basin 202007MG 10,000
2020/21 SilverRock Event Site Retention Basin 202007MG 427,250
Measure G Reserves 17/18 1,084,350 9,967,657
2018/19 Public Safety Fund 850,000
Public Safety Contract Services 2,100,000
Citywide Drainage Enhancements 151612MG 194,730
North La Quinta Landscape Improvements 201603 MG 2,129,613
SilverRock Event Site 201608MG 1,300,000
Measure G Reserves 18/19 4,383,775 10,958,118
2019/20 Public Safety Contract Services 2,750,000
Corporate Yard Administration/Crew Quarters 201805MG 411,013
Highway 111 Corridor Improvements 1,000,000
North La Quinta Landscape Improvements 201603MG 3,703,369
Village Art Plaza Promenade 201901MG 310,000
Measure G Reserves 19/20 2,136,144 10,310,526
2020/21 Public Safety Contract Services 4,545,000
X-Park Landscaping 151609MG 275,000
Highway 111 Corridor Improvements 250,000
Measure G Reserves 20/21 7,524,389 12,594,389
TOTAL 10,545,000$ 19,619,682$ 15,128,658$ 45,293,340$
23%43%33%
MEASURE G REVENUES AND USES SUMMARY
MEASURE G USES
City of La Quints
CITY COUNCIL MEETING: December 21, 2021
STAFF REPORT
CONSENT CALENDAR ITEM NO. 14
AGENDA 1.1 L : RECEIVE AND FILE FISCAL YEAR 2020/21 MEASURE G
SALES TAX COMPLIANCE REPORT
RECOMMENDATION
Receive and file fiscal year 2020/21 Measure G Sales Tax Compliance Report.
EXECUTIVE SUMMARY
• Measure G revenue for fiscal year 2020/21 was $12,594,389 and the
Measure G reserve balance as of June 30, 2021 was $15,128,658.
• The Financial Advisory Commission (FAC) provides oversight of Measure
G revenue and prepares an annual Measure G Sales Tax Oversight Report
to ensure Measure G revenue is used in compliance with the ballot
initiative.
• At the FAC's special meeting on December 14, 2021, the full Commission
formally received and filed this Report.
FISCAL IMPACT - None
BACKGROUND/ANALYSIS
In accordance with the Measure G ballot measure, the FAC provides oversight
of Measure G funds. This Measure G Report was prepared by the Finance
Department with assistance from three FAC members (Commissioners
Anderson, Campbell, and Way). The report was presented, received, and filed
at a special FAC meeting on December 14, 2021; it will also be posted to the
City's website.
The Annual Measure G Sales Tax Oversight Report for Fiscal Year 2020/21
(Attachment 1) covers the period from July 1, 2020 through June 30, 2021,
and provides a summary of the Measure G revenue and expenditures for the
fiscal year, as well as an inception -to -date summary.
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ALTERNATIVE:
Council may request additional information before filing this Report.
Prepared by: Rosemary Hallick, Financial Services Analyst
Approved by: Claudia Martinez, Finance Director
Attachment: 1. Annual Measure G Sales Tax Oversight Report for Fiscal Year
Ended June 30, 2021
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