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2022 02 09 FACFINANCIAL ADVISORY COMMISSION AGENDA Page 1 of 5 FEBRUARY 9, 2022 REGULAR QUARTERLY MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta REGULAR MEETING WEDNESDAY, FEBRUARY 9, 2022 AT 4:00 P.M. ****************************** SPECIAL NOTICE Teleconferencing and Telephonic Accessibility in Effect Beginning Friday, January 14, 2022, La Quinta City Hall and the La Quinta Wellness Center will be temporarily closed to walk-in traffic due to a surge in COVID-19. Online services are available through the www.laquintaca.gov or by calling (760) 777 7000. 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. Further, due to the temporary closure of City Hall, the public is not permitted to physically attend this meeting; however, any member of the public may listen or participate in this meeting virtually as specified below. Members of the public wanting to listen to this meeting may do so by tuning- in live via https://laquinta.12milesout.com/video/live . Written public comments can be provided by emailing 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 Financial Advisory Commission agendas and staff www.laquintaca.gov 1 FINANCIAL ADVISORY COMMISSION AGENDA Page 2 of 5 FEBRUARY 9, 2022 REGULAR QUARTERLY MEETING into the agenda packet and public record of the meeting, and will not be read during the meeting unless, upon 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 Commission Secretary 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 Commission Secretary dur will endeavor to take a brief pause before action is taken on any agenda item to allow the Commission Secretary to review emails and share any public comments received during the meeting. All emails received by the Commission 2 FINANCIAL ADVISORY COMMISSION AGENDA Page 3 of 5 FEBRUARY 9, 2022 REGULAR QUARTERLY MEETING Secretary, 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 by providing written public comments via email as indicated above; or provide verbal written comments via teleconference by joining the meeting virtually at https://us06web.zoom.us/j/89839984651 and us . Please 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 None CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. Approve Meeting Minutes Dated November 10, 2021 2. Approve Special Meeting Minutes Dated December 14, 2021 3. Receive and File Revenue and Expenditure Report Dated September 30, 2021 4. Receive and File Revenue and Expenditure Report Dated October 31, 2021 5. Receive and File Revenue and Expenditure Report Dated November 30, 2021 BUSINESS SESSION 1. Receive and File Fiscal Year 2020/21 General Fund Year-End Budget Report 3 FINANCIAL ADVISORY COMMISSION AGENDA Page 4 of 5 FEBRUARY 9, 2022 REGULAR QUARTERLY MEETING STUDY SESSION None DEPARTMENTAL REPORTS 1. Finance Department Current and Future Initiatives 2. Third Quarter 2021 (July-September) Sales Tax Update for the City of La Quinta ADJOURNMENT The next regular quarterly meeting of the La Quinta Financial Advisory Commission will be held on May 11, 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 ber at 78-495 Calle Tampico, and the bulletin boards at 78-630 Highway 111, and 51-321 Avenida Bermudas, on February 3, 2022 DATED: February 3, 2022 Jessica Delgado, Management Assistant City of La Quinta, California 4 FINANCIAL ADVISORY COMMISSION AGENDA Page 5 of 5 FEBRUARY 9, 2022 REGULAR QUARTERLY MEETING 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. 5 6 FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 4 NOVEMBER 10, 2021 REGULAR QUARTERLY MEETING FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, NOVEMBER 10, 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 Batavick. This meeting provided teleconferencing accessibility 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, Dorsey, Mast, Mills Way, and Chairperson Batavick ABSENT: None STAFF PRESENT: Interim Finance Director Martinez, Financial Services Analyst Hallick, and Management Assistant Delgado. PLEDGE OF ALLEGIANCE Commissioner Anderson 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 1. WELCOME COMMISSIONER MAST The Commission welcomed Commissioner Mast, and all Commissioners shared a brief introduction of their experiences and qualifications. CONSENT CALENDAR ITEMS 1. APPROVE MEETING MINUTES DATED AUGUST 4, 2021 CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 NOVEMBER 10, 2021 REGULAR QUARTERLY MEETING 2. APPROVE SPECIAL 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 Commissioner Mills noted paragraph 3 under Commissioners’ Items on page 3 of the August 4, 2021, minutes should list his title as “Commissioner Mills” and not “Chair Mills.” Motion – A motion was made and seconded by Commissioners Way/Dorsey to approve the Consent Calendar as amended, incorporating the language revision as noted above by Commissioner Mills on the August 4, 2021 minutes. Motion passed: ayes – 7, noes – 0. BUSINESS SESSION – None STUDY SESSION – None DEPARTMENTAL REPORTS All reports are on file in the finance department. 1. SECOND QUARTER 2021 (APRIL-JUNE) SALES TAX UPDATE FOR THE CITY OF LA QUINTA 2. INVESTMENT PORTFOLIO REVIEW Financial Services Analyst Hallick provided an overview of relevant sections of the California Government Code and City’s investment policy guidelines related to managing the City’s investment portfolio. COMMISSIONERS’ ITEMS Chair Batavick requested a verbal update on Commissioners’ Items numbered 1 through 7 below: 1. Measure G Annual Report (Report) Financial Services Analyst Hallick said that the Report subcommittee was provided revenues information for review, a draft Report and expenditures would be sent to the subcommittee the week of November FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 NOVEMBER 10, 2021 REGULAR QUARTERLY MEETING 15, and a meeting will be scheduled the week of November 30 to review all information, obtain input, and make any additional requested edits. She said a special meeting for the Commission would be needed in December for the Commission’s consideration to receive and file before it is tabled for Council’s consideration. 2. Fiscal End of Year 2020/21 Audit (Audit) Interim Finance Director Martinez said that the Audit began on November 8 and is currently ongoing. 3. 10-Year Projections Subcommittee Interim Finance Director Martinez said staff will send available meeting dates to the subcommittee to discuss ideas and recommendations on reformatting the City’s 10-year projections report. Financial Services Analyst Hallick said the City’s Community Workshop is scheduled for January 29, 2022. 4. Reserve Study (Study) Staff said the Study review is anticipated to take place in Spring of 2022. 5. Status of City’s Recruitment for a Finance Director. Interim Finance Director Martinez said the recruitment is still pending and possibly by December a selection will be made. 6. Point Happy Land Acquisition Interim Finance Director Martinez said that the available funds in the Land Acquisition account for the purchase was approved in the adopted 2021/22 budget and that additional information on the purchase and use of this property would need to be obtained from the City Manager’s Office. 7. Possible Effects on the City’s Budget Due to High Inflation and Supply Chain Issues Chair Batavick inquired if staff has looked into a strategy for any impacts on the City’s budget due to the high inflation and supply chain issues, which may cause a rise in operating expenses. Interim Finance Director Martinez said that will be a priority to review during the start of the City’s 2022/23 budget review process. Commissioner Mills inquired if the Reserve Study Report had been distributed amongst the new Commissioners. Staff said the report can be found in the Commissions meeting archive documents found on the City’s website. FINANCIAL ADVISORY COMMISSION MINUTES Page 4 of 4 NOVEMBER 10, 2021 REGULAR QUARTERLY MEETING The Commission discussed the process for adding items on the agenda for public meetings; and inquired if the City Clerk could make a brief presentation on that process at a future meeting. Staff mentioned that the Clerk’s Office will be presenting an overview on the recently updated and distributed Commissioner’s Handbook at a future meeting, and that Section 2.9 under Rules of Procedure (Resolution No. 2021-034) included in the Commissioner’s Handbook as Attachment 2 provides guidance on the process for requesting the addition of items to the agenda for a future meeting. Commissioner Way asked the Commission to reconsider the start time for Commission meetings. The Commission inquired about in person meetings for the Commission. Staff said they will provide the update to the Commission as soon as it is available. The Commission and staff discussed when fiscal year 2022/23 budget review would commence. Staff said a timeline with tentative dates would be added to the City’s website for fiscal year 2022/23 budget review. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Mills/Dorsey to adjourn this meeting at 5:05 p.m. Motion passed: ayes – 7, noes – 0. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 4 DECEMBER 14, 2021 SPECIAL MEETING FINANCIAL ADVISORY COMMISSION SPECIAL MEETING MINUTES TUESDAY, DECEMBER 14, 2021 CALL TO ORDER A special meeting of the La Quinta 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.), 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. PRESENT: Commissioners Anderson, Campbell, Dorsey, Mast, Mills, Way, and Chair Batavick ABSENT: None STAFF PRESENT: Interim Finance Director Martinez, Financial Services Analyst Hallick, City Clerk Radeva, Management Assistant Delgado, Management Analyst Mignogna, and Public Works Director/City Engineer McKinney PLEDGE OF ALLEGIANCE Commissioner Anderson 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 1. COMMISSIONER’ HANDBOOK City Clerk Radeva provided a brief overview of Section 2.9 - Requesting the Addition CONSENT CALENDAR ITEM NO. 2 FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 DECEMBER 14, 2021 SPECIAL MEETING of Items to a Future Agenda, under Rules of Procedure (Resolution No. 2021- 034) included in the Commissioner’s Handbook as Attachment 2 provided to all City established Boards and Commissions. Ms. Radeva also provided an overview on general updates on departmental structure within the City; provisions of the Ralph M. Brown Act (Government Code Section 54950 et seq.); process for general inquiries not under the scope and purview of the Commission; examples of serial meetings; and requirements necessary for in- person commission meetings and provided an update on this process. The Commission and staff congratulated Claudia Martinez on her promotion to Finance Director for the City. CONSENT CALENDAR ITEMS 1. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED AUGUST 30, 2021 2. RECEIVE AND FILE FIRST QUARTER FISCAL YEAR 2021/22 TREASURY REPORTS FOR JULY, AUGUST, SEPTEMBER 2021 Motion – A motion was made and seconded by Commissioners Anderson/Mills to approve the Consent Calendar. Motion passed unanimously. BUSINESS SESSION 1. APPROVE RECOMMENDATION OF HIGHWAY BRIDGE PROGRAM ADVANCED CONSTRUCTION FUNDING FOR THE DUNE PALMS ROAD BRIDGE PROJECT NO. 2011-05 (Project) Management Analyst Mignogna presented the staff report, which is on file in the Finance Department. The Commission, staff, and City Consultant/Project Manager Nickerson with NAI Consulting, inc. discussed how expenses are disclosed and reflected for the Project on the City’s financial statements; timeline process for Project reimbursement; funding allocation options; other agency funding shares; and Measure G and Unassigned reserve projections. The Commission requested staff obtain auditor input on how Project should be disclosed in the City’s Annual Comprehensive Financial Report. Motion – A motion was made and seconded by Commissioners Mills/Dorsey to approve recommendation of using a combination of both unassigned and Measure G funds for Highway Bridge Program Advanced Construction Funding for the Dune Palms Road Bridge Project No. 2011-05. Motion passed unanimously. FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 DECEMBER 14, 2021 SPECIAL MEETING 2. RECEIVE AND FILE FISCAL YEAR 2020/21 MEASURE G SALES TAX COMPLIANCE REPORT Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. Ms. Hallick thanked the subcommittee for their dedication and hard work in auditing and formulating the fiscal year 2020/21 annual Measure G compliance report (Report). Commissioner Mills suggested some minor changes to the Report such as changing the word recap to summary on page one, in last sentence in first paragraph under Overview; adding 23% in front of Measure G funds in second bullet point under Report Highlights on page one; replacing the word stronger with greater in first sentence under Fiscal Year 2020/21 Revenues on page one; and replacing the word concludes to confirms in last paragraph under Measure G Background and Compliance Summary on last page of Report. Discussion followed that the Report is published on the City’s website and possibly in the La Quinta Gem newspaper, a local publication in La Quinta. Motion – A motion was made and seconded by Commissioners Anderson/Batavick to receive and file the fiscal year 2020/21 annual Measure G compliance report as amended by Commissioner Mills. Motion passed unanimously. 3. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO SERVE ON THE FISCAL YEAR 2022/23 GENERAL FUND OPERATING BUDGET SUBCOMMITTEE Interim Finance Director Martinez presented the staff report, which is on file in the Finance Department. Commissioner Anderson, Dorsey, and Mast expressed their willingness to serve on the fiscal year 2022/23 general fund operating budget subcommittee. Motion – A motion was made and seconded by Commissioners Batavick/Mills to appoint Commissioners Anderson, Dorsey, and Mast to serve on the fiscal year 2022/23 general fund operating budget subcommittee. Motion passed unanimously. STUDY SESSION – None FINANCIAL ADVISORY COMMISSION MINUTES Page 4 of 4 DECEMBER 14, 2021 SPECIAL MEETING DEPARTMENTAL REPORTS All reports are on file in the finance department. 1. COMMUNITY WORKSHOP IN JANUARY Chair Batavick shared his experience from past community workshops and encouraged other commissioners to attend. 2. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Chair Batavick inquired about the review of capital improvement budget and if the City’s unfunded pension liability would be reviewed this year by the Commission. Staff said the capital improvement budget is included in the fiscal year 2022/23 operating budget subcommittee review and that the City’s unfunded pension liability reviewed last year would be reviewed again in fiscal year 2022/23. COMMISSIONERS’ ITEMS Chair Batavick said he enjoyed the City’s open house held on Tuesday, December 7, 2021, which Commissioner Anderson also attended. Chair Batavick said that he would recommend to the group who reviews the City’s unfunded pension liability in the future to consider steps to fully fund the City’s pension if there’s capacity to do so. He also asked that the subcommittee selected to review the fiscal year 2022/23 operating budget to pay close attention to the high inflation currently taking place. Further commissioner discussion took place on a future review of the City’s unfunded pension liability. ADJOURNMENT There being no further business, it was moved by Chair Batavick to adjourn this meeting at 5:45 p.m. Motion passed unanimously. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 9, 2022 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED SEPTEMBER 30, 2021 RECOMMENDATION Receive and file revenue and expenditure report dated September 30, 2021. EXECUTIVE SUMMARY •The report summarizes the City’s year-to-date (YTD) revenues and period expenditures for September 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. 3 15 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, Finance Director Attachment 1: Revenue and Expenditure Report for September 30, 2021 MTD YTD YTD Percent of Budget General Fund (GF)3,137,638$ 5,317,808$ 9.04% All Funds 5,104,921$ 9,500,410$ 10.60% MTD YTD YTD Percent of Budget General Fund 3,056,725$ 5,844,903$ 10.60% Payroll (GF)681,234$ 2,761,194$ 24.37% All Funds 5,013,833$ 10,282,229$ 11.89% September Revenues September Expenditures General Fund Non-General Fund Measure G Sales Tax 996,605$ Technology Support Internal Service Fund(1)438,675$ Sales Tax 855,803$ Developer Impact Fees- Transportation 315,582$ Transient Occupancy (Hotel) Tax 722,678$ Facility & Fleet Internal Service Fund (1)297,938$ Building Plan Check Fees 106,447$ Allocated Interest 166,888$ Building Permits 80,767$ Gas Tax 161,320$ General Fund Non-General Fund Sheriff Contract (July)1,125,983$ Capital Improvement Program (CIP) - Construction(3)473,844$ Information Technology(2)366,800$ Developer Reimbursements 400,000$ Facility & Fleet Maintenance (2)182,987$ SilverRock Maintenance 109,474$ Liability Insurance & Claims (2)149,000$ CIP - Professional Services (4)106,531$ Parks Landscape Maintenance 97,073$ Software Licenses 97,573$ (4) CIP Professional Services: Consulting expenses associated with multiple ongoing capital improvement projects. Top Five Revenue/Income Sources for September Top Five Expenditures/Outlays for September (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) These charges in the General Fund represent quarterly contributions to the Internal Service Funds. (3) CIP Construction: X-Park and Public Safety Cameras 16 For Fiscal: 2021/22 Period Ending: 09/30/2021 1/18/2022 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 5,317,8083,137,63858,804,210 58,804,210 -53,486,402 9.04 % 201 - GAS TAX FUND 355,300161,3201,965,880 1,965,880 -1,610,580 18.07 % 202 - LIBRARY & MUSEUM FUND -2,8431332,850,700 2,850,700 -2,853,543 0.10 % 203 - PUBLIC SAFETY FUND (MEASURE G)-18005,000 5,000 -5,180 3.60 % 210 - FEDERAL ASSISTANCE FUND -1170151,000 151,000 -151,117 0.08 % 212 - SLESA (COPS) FUND -1190101,000 101,000 -101,119 0.12 % 215 - LIGHTING & LANDSCAPING FUND -21202,274,700 2,274,700 -2,274,912 0.01 % 221 - AB 939 - CALRECYCLE FUND -9,875-6,18770,000 70,000 -79,875 14.11 % 223 - MEASURE A FUND -1,05901,567,000 1,567,000 -1,568,059 0.07 % 225 - INFRASTRUCTURE FUND -80100100 -108 7.77 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)-9,750012,000 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 4,5071,26819,200 19,200 -14,693 23.47 % 231 - SUCCESSOR AGCY PA 1 RORF 0000 0 0.00 % 235 - SO COAST AIR QUALITY FUND -16052,800 52,800 -52,816 0.03 % 237 - SUCCESSOR AGCY PA 1 ADMIN -74000 -74 0.00 % 241 - HOUSING AUTHORITY 278,21698,075871,400 871,400 -593,184 31.93 % 243 - RDA LOW-MOD HOUSING FUND -1,129035,000 35,000 -36,129 3.23 % 247 - ECONOMIC DEVELOPMENT FUND -1,224030,000 30,000 -31,224 4.08 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)6,0836,448201,000 201,000 -194,917 3.03 % 250 - TRANSPORTATION DIF FUND 613,103315,582428,000 428,000 185,103 143.25 % 251 - PARKS & REC DIF FUND 153,68061,016351,000 351,000 -197,320 43.78 % 252 - CIVIC CENTER DIF FUND 111,97448,507152,000 152,000 -40,026 73.67 % 253 - LIBRARY DEVELOPMENT DIF 28,92811,46050,000 50,000 -21,072 57.86 % 254 - COMMUNITY & CULTURAL CENTERS DIF 68,86726,89772,000 72,000 -3,133 95.65 % 255 - STREET FACILITY DIF FUND 10,6256,31500 10,625 0.00 % 256 - PARK FACILITY DIF FUND 404000 40 0.00 % 257 - FIRE PROTECTION DIF 36,63016,27466,000 66,000 -29,370 55.50 % 270 - ART IN PUBLIC PLACES FUND 41,41010,585130,000 130,000 -88,590 31.85 % 275 - LQ PUBLIC SAFETY OFFICER -2002,600 2,600 -2,620 0.76 % 299 - INTEREST ALLOCATION FUND 387,358166,88800 387,358 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 -1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 671,48209,894,806 9,894,806 -9,223,324 6.79 % 405 - SA PA 1 CAPITAL IMPRV FUND -458000 -458 0.00 % 501 - FACILITY & FLEET REPLACEMENT 296,480297,9381,222,750 1,222,750 -926,270 24.25 % 502 - INFORMATION TECHNOLOGY 444,230440,8901,786,700 1,786,700 -1,342,470 24.86 % 503 - PARK EQUIP & FACILITY FUND 86,02687,500400,000 400,000 -313,974 21.51 % 504 - INSURANCE FUND 252,357252,5001,010,800 1,010,800 -758,443 24.97 % 601 - SILVERROCK RESORT 394,531175,7854,157,693 4,157,693 -3,763,162 9.49 % 602 - SILVERROCK GOLF RESERVE -210067,000 67,000 -67,210 0.31 % 760 - SUPPLEMENTAL PENSION PLAN -3806,000 6,000 -6,038 0.63 % 761 - CERBT OPEB TRUST -2,759-2,75980,000 80,000 -82,759 3.45 % 762 - PARS PENSION TRUST -29,137-209,191700,000 700,000 -729,137 4.16 % Report Total:5,104,921 9,500,41089,594,439 89,594,439 -80,094,029 10.60 % ATTACHMENT 1 17 For Fiscal: 2021/22 Period Ending: 09/30/2021 1/18/2022 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 5,844,9033,056,72555,162,726 55,162,726 49,317,823 10.60 % 201 - GAS TAX FUND 212,141171,9342,007,500 2,007,500 1,795,359 10.57 % 202 - LIBRARY & MUSEUM FUND 92,43252,6584,306,510 4,306,510 4,214,078 2.15 % 210 - FEDERAL ASSISTANCE FUND 00148,350 148,350 148,350 0.00 % 212 - SLESA (COPS) FUND 2,9072,907100,000 100,000 97,093 2.91 % 215 - LIGHTING & LANDSCAPING FUND 429,544174,9392,257,400 2,257,400 1,827,856 19.03 % 221 - AB 939 - CALRECYCLE FUND 00150,000 150,000 150,000 0.00 % 223 - MEASURE A FUND 5,9555,9551,220,500 1,220,500 1,214,545 0.49 % 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 78641742,500 42,500 41,714 1.85 % 241 - HOUSING AUTHORITY 233,542114,1721,542,200 1,542,200 1,308,658 15.14 % 243 - RDA LOW-MOD HOUSING FUND 700700250,000 250,000 249,300 0.28 % 247 - ECONOMIC DEVELOPMENT FUND 0021,500 21,500 21,500 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)30,545020,000 20,000 -10,545 152.73 % 250 - TRANSPORTATION DIF FUND 400,000400,000604,500 604,500 204,500 66.17 % 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 13,21912,238127,000 127,000 113,782 10.41 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 913,083597,4319,894,806 9,894,806 8,981,723 9.23 % 501 - FACILITY & FLEET REPLACEMENT 73,56917,1321,222,750 1,222,750 1,149,181 6.02 % 502 - INFORMATION TECHNOLOGY 481,055147,8621,786,700 1,786,700 1,305,645 26.92 % 503 - PARK EQUIP & FACILITY FUND 11255,000 255,000 254,999 0.00 % 504 - INSURANCE FUND 849,3741,749936,800 936,800 87,426 90.67 % 601 - SILVERROCK RESORT 670,053251,4944,161,262 4,161,262 3,491,209 16.10 % 760 - SUPPLEMENTAL PENSION PLAN 12,833012,850 12,850 17 99.87 % 761 - CERBT OPEB TRUST 4464461,500 1,500 1,054 29.72 % 762 - PARS PENSION TRUST 15,1405,07352,000 52,000 36,860 29.12 % Report Total:5,013,833 10,282,22986,463,054 86,463,054 76,180,825 11.89 % 18 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 19 20 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 9, 2022 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED OCTOBER 31, 2021 RECOMMENDATION Receive and file revenue and expenditure report dated October 31, 2021. EXECUTIVE SUMMARY • The report summarizes the City’s year-to-date (YTD) revenues and period expenditures for October 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 21 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, Finance Director Attachment 1: Revenue and Expenditure Report for October 31, 2021 MTD YTD YTD Percent of Budget General Fund (GF)3,868,068$ 9,185,876$ 15.62% All Funds 5,704,378$ 15,204,788$ 16.97% MTD YTD YTD Percent of Budget General Fund 4,084,681$ 9,929,585$ 18.00% Payroll (GF)899,497$ 3,660,691$ 32.31% All Funds 5,836,219$ 16,118,448$ 18.64% October Expenditures October Revenues General Fund Non-General Fund Measure G Sales Tax 1,288,136$ Developer Impact Fees- Transportation 582,188$ Sales Tax 1,054,672$ County Sales Tax (Measure A)317,328$ Transient Occupancy (Hotel) Tax 725,267$ Pension Trust Earnings 184,255$ Property Tax 106,191$ SilverRock Greens Fees 173,058$ Building Permits 101,237$ Rent Revenues 113,681$ General Fund Non-General Fund Sheriff Contract (August and September)2,507,117$ Capital Improvement Program - Construction(1)695,749$ Marketing and Tourism Promotions 69,445$ S ilverRock Maintenance 325,611$ Visit Greater Palm Springs 53,349$ Lighting & Landscape Maintenance 65,331$ Parks Landscape Maintenance 48,536$ V ehicles 56,022$ Parks Maintenance 43,591$ Capital Improvement Program -Design(2)48,310$ (1)CIP Construction: X-Park, Fire Station 70, and Eisenhower Retention Basin Top Five Revenue/Income Sources for October Top Five Expenditures/Outlays for October (2)CIP Design Services: Hwy 111 planning, X-Park landscaping, SilverRock phase 2 infrastructure 22 For Fiscal: 2021/22 Period Ending: 10/31/2021 1/20/2022 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 9,185,8763,868,06858,804,210 58,804,210 -49,618,334 15.62 % 201 - GAS TAX FUND 432,78777,4871,965,880 1,965,880 -1,533,093 22.01 % 202 - LIBRARY & MUSEUM FUND -2,5852582,850,700 2,850,700 -2,853,285 0.09 % 203 - PUBLIC SAFETY FUND (MEASURE G)-18005,000 5,000 -5,180 3.60 % 210 - FEDERAL ASSISTANCE FUND -1170151,000 151,000 -151,117 0.08 % 212 - SLESA (COPS) FUND 61,16561,285101,000 101,000 -39,835 60.56 % 215 - LIGHTING & LANDSCAPING FUND 14,05814,2702,274,700 2,274,700 -2,260,642 0.62 % 221 - AB 939 - CALRECYCLE FUND -6,0493,82670,000 70,000 -76,049 8.64 % 223 - MEASURE A FUND 316,269317,3281,567,000 1,567,000 -1,250,731 20.18 % 225 - INFRASTRUCTURE FUND -80100100 -108 7.77 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)-9,750012,000 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 6,5912,08419,200 19,200 -12,609 34.33 % 231 - SUCCESSOR AGCY PA 1 RORF 0000 0 0.00 % 235 - SO COAST AIR QUALITY FUND -16052,800 52,800 -52,816 0.03 % 237 - SUCCESSOR AGCY PA 1 ADMIN -74000 -74 0.00 % 241 - HOUSING AUTHORITY 410,397132,181871,400 871,400 -461,003 47.10 % 243 - RDA LOW-MOD HOUSING FUND -1,129035,000 35,000 -36,129 3.23 % 247 - ECONOMIC DEVELOPMENT FUND -1,224030,000 30,000 -31,224 4.08 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)6,0830201,000 201,000 -194,917 3.03 % 250 - TRANSPORTATION DIF FUND 1,195,291582,188428,000 428,000 767,291 279.27 % 251 - PARKS & REC DIF FUND 193,69440,014351,000 351,000 -157,306 55.18 % 252 - CIVIC CENTER DIF FUND 178,73266,757152,000 152,000 26,732 117.59 % 253 - LIBRARY DEVELOPMENT DIF 36,4547,52650,000 50,000 -13,546 72.91 % 254 - COMMUNITY & CULTURAL CENTERS DIF 86,07517,20872,000 72,000 14,075 119.55 % 255 - STREET FACILITY DIF FUND 31,46320,83800 31,463 0.00 % 256 - PARK FACILITY DIF FUND 40000 40 0.00 % 257 - FIRE PROTECTION DIF 63,83027,19966,000 66,000 -2,170 96.71 % 270 - ART IN PUBLIC PLACES FUND 88,42347,013130,000 130,000 -41,577 68.02 % 275 - LQ PUBLIC SAFETY OFFICER -2002,600 2,600 -2,620 0.76 % 299 - INTEREST ALLOCATION FUND 434,97347,61500 434,973 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 -1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 671,48209,894,806 9,894,806 -9,223,324 6.79 % 405 - SA PA 1 CAPITAL IMPRV FUND -458000 -458 0.00 % 501 - FACILITY & FLEET REPLACEMENT 296,48001,222,750 1,222,750 -926,270 24.25 % 502 - INFORMATION TECHNOLOGY 446,1651,9351,786,700 1,786,700 -1,340,535 24.97 % 503 - PARK EQUIP & FACILITY FUND 86,0260400,000 400,000 -313,974 21.51 % 504 - INSURANCE FUND 252,35701,010,800 1,010,800 -758,443 24.97 % 601 - SILVERROCK RESORT 579,574185,0444,157,693 4,157,693 -3,578,119 13.94 % 602 - SILVERROCK GOLF RESERVE -210067,000 67,000 -67,210 0.31 % 760 - SUPPLEMENTAL PENSION PLAN -3806,000 6,000 -6,038 0.63 % 761 - CERBT OPEB TRUST -2,759080,000 80,000 -82,759 3.45 % 762 - PARS PENSION TRUST 155,118184,255700,000 700,000 -544,882 22.16 % Report Total:5,704,378 15,204,78889,594,439 89,594,439 -74,389,651 16.97 % 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. 23 For Fiscal: 2021/22 Period Ending: 10/31/2021 1/19/2022 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 9,929,5854,084,68155,162,726 55,162,726 45,233,141 18.00 % 201 - GAS TAX FUND 257,19845,0572,007,500 2,007,500 1,750,302 12.81 % 202 - LIBRARY & MUSEUM FUND 127,65335,2214,306,510 4,306,510 4,178,857 2.96 % 210 - FEDERAL ASSISTANCE FUND 00148,350 148,350 148,350 0.00 % 212 - SLESA (COPS) FUND 4,5761,669100,000 100,000 95,424 4.58 % 215 - LIGHTING & LANDSCAPING FUND 604,167174,6232,257,400 2,257,400 1,653,233 26.76 % 221 - AB 939 - CALRECYCLE FUND 00150,000 150,000 150,000 0.00 % 223 - MEASURE A FUND 16,71810,7621,220,500 1,220,500 1,203,782 1.37 % 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 1,25647142,500 42,500 41,244 2.96 % 237 - SUCCESSOR AGCY PA 1 ADMIN 50050000 -500 0.00 % 241 - HOUSING AUTHORITY 330,87697,3341,542,200 1,542,200 1,211,324 21.45 % 243 - RDA LOW-MOD HOUSING FUND 7000250,000 250,000 249,300 0.28 % 247 - ECONOMIC DEVELOPMENT FUND 0021,500 21,500 21,500 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)30,545020,000 20,000 -10,545 152.73 % 250 - TRANSPORTATION DIF FUND 400,0000604,500 604,500 204,500 66.17 % 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 25,45612,238127,000 127,000 101,544 20.04 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 1,657,998744,9159,894,806 9,894,806 8,236,808 16.76 % 501 - FACILITY & FLEET REPLACEMENT 180,783107,2131,222,750 1,222,750 1,041,968 14.78 % 502 - INFORMATION TECHNOLOGY 556,41475,3591,786,700 1,786,700 1,230,286 31.14 % 503 - PARK EQUIP & FACILITY FUND 6,9726,971255,000 255,000 248,028 2.73 % 504 - INSURANCE FUND 850,251877936,800 936,800 86,549 90.76 % 601 - SILVERROCK RESORT 1,103,373433,3204,161,262 4,161,262 3,057,889 26.52 % 760 - SUPPLEMENTAL PENSION PLAN 12,833012,850 12,850 17 99.87 % 761 - CERBT OPEB TRUST 44601,500 1,500 1,054 29.72 % 762 - PARS PENSION TRUST 20,1485,00852,000 52,000 31,852 38.75 % Report Total:5,836,219 16,118,44886,463,054 86,463,054 70,344,606 18.64 % 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. 24 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 9, 2022 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED NOVEMBER 30, 2021 RECOMMENDATION Receive and file revenue and expenditure report dated November 30, 2021. EXECUTIVE SUMMARY • The report summarizes the City’s year-to-date (YTD) revenues and period expenditures for November 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. 5 25 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, Finance Director Attachment 1: Revenue and Expenditure Report for November 30, 2021 MTD YTD YTD Percent of Budget General Fund (GF)4,414,712$ 13,600,587$ 23.13% All Funds 6,231,482$ 22,270,754$ 24.86% MTD YTD YTD Percent of Budget General Fund 1,004,182$ 11,297,560$ 20.48% Payroll (GF)636,688$ 4,297,379$ 37.93% All Funds 2,240,397$ 32,695,901$ 37.81% November Expenditures November Revenues General Fund Non-General Fund Transient Occupancy (Hotel) Tax 1,191,295$ SilverRock Greens Fees 460,254$ Measure G Sales Tax 914,607$ Sale of Land 348,482$ Sales Tax 613,938$ Gas Tax 226,340$ Fire Service Credit 464,989$ County Sales Tax (Measure A)160,611$ Property Tax 290,787$ Allocated Interest 111,962$ General Fund Non-General Fund Parks Landscape Maintenance 48,536$ SilverRock Maintenance 227,700$ Contract Legal Services 36,083$ Capital Improvement Program - Construction(1)189,690$ Marketing and Tourism Promotions 30,822$ Lighting & Landscape Maintenance 65,331$ Animal Shelter Contract Service 21,342$ Capital Improvement Program -Design(2)58,849$ Parks Materials and Supplies 20,139$ Software Licenses 38,204$ Top Five Revenue/Income Sources for November Top Five Expenditures/Outlays for November (1)CIP Construction: X-Park and Public Safety Cameras (2)CIP Design Services: Landscaping and Fire Station 70 26 For Fiscal: 2021/22 Period Ending: 11/30/2021 1/31/2022 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 13,600,5874,414,71258,804,210 58,804,210 -45,203,623 23.13 % 201 - GAS TAX FUND 659,127226,3401,965,880 1,965,880 -1,306,753 33.53 % 202 - LIBRARY & MUSEUM FUND -2,513722,850,700 2,850,700 -2,853,213 0.09 % 203 - PUBLIC SAFETY FUND (MEASURE G)-18005,000 5,000 -5,180 3.60 % 210 - FEDERAL ASSISTANCE FUND -1170151,000 151,000 -151,117 0.08 % 212 - SLESA (COPS) FUND 77,83216,667101,000 101,000 -23,168 77.06 % 215 - LIGHTING & LANDSCAPING FUND 14,05802,274,700 2,274,700 -2,260,642 0.62 % 221 - AB 939 - CALRECYCLE FUND -2,4703,57970,000 70,000 -72,470 3.53 % 223 - MEASURE A FUND 476,880160,6111,567,000 1,567,000 -1,090,120 30.43 % 225 - INFRASTRUCTURE FUND -80100100 -108 7.77 % 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)19,05928,80912,000 12,000 7,059 158.83 % 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)005,000 5,000 -5,000 0.00 % 230 - CASp FUND, AB 1379 8,1911,60019,200 19,200 -11,009 42.66 % 231 - SUCCESSOR AGCY PA 1 RORF 48,79448,77800 48,794 0.00 % 235 - SO COAST AIR QUALITY FUND -16052,800 52,800 -52,816 0.03 % 237 - SUCCESSOR AGCY PA 1 ADMIN -74000 -74 0.00 % 241 - HOUSING AUTHORITY 946,127535,730871,400 871,400 74,727 108.58 % 243 - RDA LOW-MOD HOUSING FUND -1,129035,000 35,000 -36,129 3.23 % 247 - ECONOMIC DEVELOPMENT FUND -1,224030,000 30,000 -31,224 4.08 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)6,0830201,000 201,000 -194,917 3.03 % 250 - TRANSPORTATION DIF FUND 1,287,49892,207428,000 428,000 859,498 300.82 % 251 - PARKS & REC DIF FUND 242,13248,438351,000 351,000 -108,868 68.98 % 252 - CIVIC CENTER DIF FUND 207,02228,290152,000 152,000 55,022 136.20 % 253 - LIBRARY DEVELOPMENT DIF 45,5859,13150,000 50,000 -4,415 91.17 % 254 - COMMUNITY & CULTURAL CENTERS DIF 108,06321,98872,000 72,000 36,063 150.09 % 255 - STREET FACILITY DIF FUND 31,463000 31,463 0.00 % 256 - PARK FACILITY DIF FUND 40000 40 0.00 % 257 - FIRE PROTECTION DIF 72,3178,48766,000 66,000 6,317 109.57 % 270 - ART IN PUBLIC PLACES FUND 93,2214,798130,000 130,000 -36,779 71.71 % 275 - LQ PUBLIC SAFETY OFFICER -2002,600 2,600 -2,620 0.76 % 299 - INTEREST ALLOCATION FUND 546,935111,96200 546,935 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 -1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 1,505,94909,894,806 9,894,806 -8,388,857 15.22 % 405 - SA PA 1 CAPITAL IMPRV FUND -458000 -458 0.00 % 501 - FACILITY & FLEET REPLACEMENT 297,3428611,222,750 1,222,750 -925,408 24.32 % 502 - INFORMATION TECHNOLOGY 448,0951,9301,786,700 1,786,700 -1,338,605 25.08 % 503 - PARK EQUIP & FACILITY FUND 86,0260400,000 400,000 -313,974 21.51 % 504 - INSURANCE FUND 252,35701,010,800 1,010,800 -758,443 24.97 % 601 - SILVERROCK RESORT 1,115,764536,1904,157,693 4,157,693 -3,041,929 26.84 % 602 - SILVERROCK GOLF RESERVE -210067,000 67,000 -67,210 0.31 % 760 - SUPPLEMENTAL PENSION PLAN -3806,000 6,000 -6,038 0.63 % 761 - CERBT OPEB TRUST -2,759080,000 80,000 -82,759 3.45 % 762 - PARS PENSION TRUST 85,420-69,697700,000 700,000 -614,580 12.20 % Report Total:6,231,482 22,270,75489,594,439 89,594,439 -67,323,685 24.86 % 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 27 For Fiscal: 2021/22 Period Ending: 11/30/2021 1/31/2022 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 11,297,5601,004,18255,162,726 55,162,726 43,865,166 20.48 % 201 - GAS TAX FUND 300,64737,4252,007,500 2,007,500 1,706,853 14.98 % 202 - LIBRARY & MUSEUM FUND 150,49922,8464,306,510 4,306,510 4,156,011 3.49 % 203 - PUBLIC SAFETY FUND (MEASURE G)89,541000 -89,541 0.00 % 210 - FEDERAL ASSISTANCE FUND 00148,350 148,350 148,350 0.00 % 212 - SLESA (COPS) FUND 4,5760100,000 100,000 95,424 4.58 % 215 - LIGHTING & LANDSCAPING FUND 756,042151,8752,257,400 2,257,400 1,501,358 33.49 % 220 - QUIMBY FUND 330,300000 -330,300 0.00 % 221 - AB 939 - CALRECYCLE FUND 00150,000 150,000 150,000 0.00 % 223 - MEASURE A FUND 58,15901,220,500 1,220,500 1,162,341 4.77 % 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 % 231 - SUCCESSOR AGCY PA 1 RORF 13,502,588000 -13,502,588 0.00 % 235 - SO COAST AIR QUALITY FUND 1,81756142,500 42,500 40,683 4.28 % 237 - SUCCESSOR AGCY PA 1 ADMIN 500000 -500 0.00 % 241 - HOUSING AUTHORITY 416,51585,6401,542,200 1,542,200 1,125,685 27.01 % 243 - RDA LOW-MOD HOUSING FUND 7000250,000 250,000 249,300 0.28 % 247 - ECONOMIC DEVELOPMENT FUND 16,50016,50021,500 21,500 5,000 76.74 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)30,545020,000 20,000 -10,545 152.73 % 250 - TRANSPORTATION DIF FUND 400,0000604,500 604,500 204,500 66.17 % 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 35,0569,600127,000 127,000 91,944 27.60 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 1,100 0.00 % 401 - CAPITAL IMPROVEMENT PROGRAMS 1,946,260288,2629,894,806 9,894,806 7,948,546 19.67 % 405 - SA PA 1 CAPITAL IMPRV FUND 3,368000 -3,368 0.00 % 501 - FACILITY & FLEET REPLACEMENT 192,41711,6351,222,750 1,222,750 1,030,333 15.74 % 502 - INFORMATION TECHNOLOGY 656,35299,9381,786,700 1,786,700 1,130,348 36.74 % 503 - PARK EQUIP & FACILITY FUND 6,9720255,000 255,000 248,028 2.73 % 504 - INSURANCE FUND 850,2510936,800 936,800 86,549 90.76 % 601 - SILVERROCK RESORT 1,610,240506,8684,161,262 4,161,262 2,551,022 38.70 % 760 - SUPPLEMENTAL PENSION PLAN 12,833012,850 12,850 17 99.87 % 761 - CERBT OPEB TRUST 44601,500 1,500 1,054 29.72 % 762 - PARS PENSION TRUST 25,2155,06752,000 52,000 26,785 48.49 % Report Total:2,240,397 32,695,90186,463,054 86,463,054 53,767,153 37.81 % 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. 28 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 29 30 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 9, 2022 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2020/21 GENERAL FUND YEAR-END BUDGET REPORT RECOMMENDATION Receive and file Fiscal Year 2020/21 General Fund Year-End Budget Report. EXECUTIVE SUMMARY •After closing the prior fiscal year (FY), Finance presents a year-end summary that compares the final budget to actual transactions. •Revenue was nearly $8.6 million higher than budgeted. •Expenditures (including approved carryovers from FY 2019/20 into FY 2020/21) were $19.5 million under budget. Of these savings, approximately $14.6 million will be carried over to 2021/22 for capital improvements and operations, and $7.5 million was allocated to Measure G reserves for net savings of $13.4 million. •The City Council was presented this report on January 18, 2022. FISCAL IMPACT Amended budget carryovers from 2020/21 to 2021/22 total $14,843,959 for all Funds and are funded with budgetary savings from 2020/21. ESTIMATED REVISED General Fund (101) - Operating 583,100$ 1,209,870$ General Fund (101) - Capital Improvements 1,250,000$ 13,431,089$ Library and Museum Fund (202)-$ 50,000$ Information Technology Fund (502)123,000$ 153,000$ 1,956,100$ 14,843,959$ TOTAL CARRYOVERS BY FUND CARRYOVER TOTALS BY FUND BUSINESS SESSION ITEM NO. 1 31 BACKGROUND/ANALYSIS The Fiscal Year 2020/21 General Fund Year-End Budget Report (Report) focuses on the General Fund. Revenues were over budget by $8,659,361; mostly due to tax revenues. Overall, all department expenditures were under budget with total savings of $19,479,411. Of these savings, $14,640,959 will be carried over to FY 2021/22 for multi-year capital projects and operations. The net savings (net of carryovers) were $13,495,238. Revenues, expenditures, carryovers, reserve balances, and a year-over-year comparison are discussed in the Fiscal Year 2020/21 General Fund Year-End Budget Report (Attachment 1). ALTERNATIVES The Commission may request additional information regarding this Report. Prepared by: Claudia Martinez, Finance Director Approved by: Jon McMillen, City Manager Attachment: 1. Fiscal Year 2020/21 General Fund Year-End Budget Report 32 OVERVIEW The City oversees multiple sources of funds which are reported in the Annual Comprehensive Financial Report (ACFR) issued annually and presented at a public meeting shortly thereafter. This Fiscal Year 2020/21 Budget Report (Report) focuses on the General Fund and summarizes the overall financial activities of fiscal year (FY) 2020/21 and the City’s financial position through June 30, 2021. The chart below provides a summary comparison of the FY 2020/21 final budget versus actual revenues and expenses. The General Fund is fiscally resilient, with strong reserves, revenues exceeding budgetary projections and expenditure savings. Moving forward, supporting the economic health and safety of the community and employees remains a high priority in the decision-making process for the City. As the City continues to recover from the impacts of the pandemic, staff will closely monitor unforeseeable economic conditions. General Fund 2020/21 Final Budget 2020/21 Actuals Co Variance Operational Revenues 57,685,534 66,344,895 *8,659,361 Capital/Operational Carryovers 14,957,983 14,957,983 - Measure G Reserves 1,131,950 1,131,950 - CIP Savings/Use of Reserves 321,900 321,900 - Economic Disaster Reserves 500,000 500,000 - Total Revenues 74,597,367 83,256,728 8,659,361 - Operational/CIP Expenses Multi-Year Capital Improvements 19,286,314 6,042,385 (13,243,929) Operational 47,789,239 41,553,757 *(6,235,482) Expenses Before Carryovers 67,075,553 47,596,141 (19,479,411) - Plus Carryovers to 2021/22 Multi-Year Capital Improvements 13,431,089 13,431,089 Operational 1,209,870 1,209,870 Adjusted Expenditures 67,075,553 62,237,101 (4,838,452) Plus Measure G Reserves 5,547,200 7,524,389 1,977,189 Total Expenditures 72,622,753 69,761,490 (2,861,263) Surplus/(Deficit) After Carryovers 1,974,614 13,495,238 11,520,624 *Reduced by non-cash transactions described in the 2020/21 Year-End Budget Report FISCAL YEAR 2020/21 GENERAL FUND YEAR-END BUDGET REPORT ATTACHMENT 1 33 Operational revenues were approximately $8.6 million over budget and expenses after adjustments, carryovers, and reserve savings were $2,861,263 under budget resulting in a budget surplus of $11,520,624. REVENUE VARIANCES As detailed in Exhibit A and summarized on the chart below, most General Fund revenues experienced positive variances when compared to the final budget. • Taxes represent 78% of all General Fund revenues and include the three largest funding sources for the City – sales taxes $23,323,549, transient occupancy taxes (TOT) $11,071,977, and property taxes $9,232,411. Combined, these top three revenues account for $43,627,937 or 85% of all taxes. • Licenses and permits continued to overperform. COVID did not shut down the building industry and in most instances generated additional demand and accelerated current projects. • Use of Money and Property includes the annual fair market value adjustment to the City’s investments. In FY 2020/21 the portfolio holdings were valued less than book value due to market conditions, therefore a negative adjustment in the amount of $666,023 was recorded. The City’s investments have a five-year horizon with laddered maturities. The City has worked diligently to leverage highly restricted investments under volatile market conditions. At June 30, 2020, the portfolio was earning a 1.82% rate of return and on June 30, 2021 the return was 0.95%. General Fund Revenues 2020/21 Final Budget 2020/21 Actuals Variance % Variance Tax Revenue 44,878,000 51,515,856 6,637,856 15% Licenses & Permits 1,186,800 2,024,611 837,811 71% Intergovernmental 9,343,634 9,375,935 32,301 0% Charges for Services 575,000 962,368 387,368 67% Fines, Forfeitures & Abatements 264,000 779,006 515,006 195% Use of Money & Property 845,000 379,206 (465,794) -55% Miscellaneous/Transfers In 593,100 1,233,835 640,735 108% Total Revenues 57,685,534 66,270,818 8,585,283 15% Non-Cash Adjustments Investments Fair Market Value Adjustment 666,023 666,023 RDA Loan Interest Earned, Extraordinary Gain (591,946) (591,946) 74,077 74,077 Total Adjusted Revenues 57,685,534 66,344,895 8,659,361 34 • Miscellaneous and Transfers In revenue includes $591,946 to record the annual former Redevelopment Agency loan repayment interest earned in FY 2020/21. The loan repayments are structured to pay all principal first, then interest. Each year the City records the payment received and interest earned in accordance with the State Department of Finance approved loan repayment schedule. This amount is also reduced from revenues as an adjustment because it is earned, but not received until a future date. EXPENSE VARIANCES General Fund expenses are summarized in the chart below by department, and details by department and expense category are located in Exhibit B. Overall, despite reductions in areas where COVID-19 restrictions and impacts continued into FY 2020/21, all departments remained within budget. Savings were derived from the prudent management of contract and professional services, postponing non-critical repairs and upgrades, and salary and benefits savings from vacant and temporarily furloughed positions. 35 • Centralized Services (CS) represents the largest budget variance in the amount of $14.1 million. CS captures citywide expenses such as pension liabilities, retiree medical benefits, and transfers out to other funds such as the Gas Tax Fund for street improvements, Lighting and Landscape Fund, SilverRock Golf Course Fund, Public Safety Fund, Economic Development Fund and the Capital Improvement Project Fund. This department also has the greatest carryovers to FY 2021/22 to fund multi-year capital improvement projects as detailed in Exhibit C. The majority of capital improvement carryover funding ($9,594,940 or 71%) is provided from Measure G sales tax revenue. • To ensure funds are available for critical services such as Police and Fire, the City budget incorporates the rates originally disclosed by the County. General Fund Expenditures 2020/21 Final Budget 2020/21 Actuals Variance Carryovers to 2021/22 City Council 292,900 233,538 (59,362) - City Manager 767,000 669,515 (97,485) - City Attorney 565,000 457,354 (107,646) 100,000 Human Resources 304,400 215,251 (89,149) - City Clerk 639,100 494,173 (144,927) - Finance 1,423,400 1,304,355 (119,045) - Centralized Services 23,659,331 9,503,897 (14,155,434) 13,581,089 Police 17,204,700 16,479,907 (724,793) 10,000 Fire 9,165,422 7,037,802 (2,127,620) 475,770 Community Resources Admin. 790,600 699,783 (90,817) 20,000 Wellness Center Operations 558,800 495,568 (63,232) - Recreational Programs & Events 478,700 208,501 (270,199) 120,000 Parks Maintenance 1,814,400 1,782,193 (32,207) - Marketing & Community Relations 1,228,800 1,105,482 (123,318) - Public Buildings 1,190,700 1,119,812 (70,888) - Design & Development Admin.649,300 639,565 (9,735) - Planning 613,900 520,082 (93,818) - Building 787,100 717,997 (69,103) - Code Compliance/Animal Control 1,310,700 1,138,317 (172,383) - The Hub 965,300 830,952 (134,348) 10,000 Public Works Administration 719,200 509,466 (209,734) Public Works Dev. Services 390,200 354,895 (35,305) - Streets 494,300 437,000 (57,300) - Engineering Services 1,062,300 640,737 (421,563) 324,100 Total Operating/CIP Expenditures 67,075,553 47,596,141 (19,479,411) 14,640,959 Estimated Actual Variance Carryovers to 2021/22 Capital Improvements - 13,431,089 13,431,089 Operational - 1,209,870 1,209,870 Total Carryovers - 14,640,959 14,640,959 Adjusted Expenditures before Reserves 67,075,553 62,237,101 (4,838,452) Plus Measure G Reserves 5,547,200 7,524,389 1,977,189 Total Adjusted Expenses 72,622,753 69,761,490 (2,861,263) 36 FY 2020/21 savings are derived from enhancing and modifying resources during the pandemic. o Police Contract Services savings of $724,793 were a result of contract service rates coming in lower than projected by Riverside County Sheriff’s Department (RCSD). o Fire Contract Services savings of $2,127,620 included $361,686 for the Fire Station 70 revitalization project, which is being carried over to FY 2021/22 and contract service savings of $1,043,816. Carryovers totaling $475,770 also include vehicle equipment upgrades and fire station generators and ladder truck purchase. • The Recreational Programs and Events savings of $270,199 were a result of postponed citywide events combined with reduced staffing levels due to COVID-19. • The Public Works Administration department savings of $209,734 were attributed to professional services and on-call electrical services reductions not anticipated during the year. • The Engineering Services department savings of $421,563 were derived from contract service reductions and postponement of La Quinta's share of the CVAG Art & Music Line in the amount of $321,400 which is being carried over to FY 2021/22. Operational carryovers, detailed in Exhibit D, from FY 2020/21 to FY 2021/22 increased by $626,770 from the original anticipated amount of $583,100 to $1,209,870. This increase is recommended because of the continued volatility in reopening the economy, which impacts City operations. Funds not being carried over are recognized as Unassigned Reserve Fund balance in the General Fund. CIP revenue commitments are reflected in assigned reserves and operational carryovers are noted in committed reserves. RESERVES The chart below depicts reserve balances by category and the value change from June 30, 2020 to June 30, 2021. These reserve balances reflect the financial health of the City at fiscal-year end. 37 • Non-spendable balance decreased by a total of $1,987,939 and included a slight increase in prepaid costs and the FY 2020/21 Redevelopment Agency loan repayment of $2,591,066 and interest earnings of $591,946 resulted in a decrease of $1,999,120 in Due from Other Governments. • The Due from Other Governments balance of $24,070,622 represents the principal ($13,071,276) and interest ($10,999,346) owed to the General Fund (80% of total loan repayments). Non-spendable reserves cannot be used to fund ongoing operations and primarily represent commitments due to the General Fund. • Restricted reserves are limited to funds held in a Section 115 Pension Trust set aside to fund the City’s pension obligations. The trust balance resulted in an increase in total value of $1,132,184 due to investment gains. Reserve/Fund Balance As of June 30, 2020 As of June 30, 2021 Change in Value Non-Spendable Prepaid Costs 14,065 25,246 11,181 Land Held for Resale 5,403,652 5,403,652 - Advances to Other Funds - - - Due from Other Governments 26,069,742 24,070,622 (1,999,120) Total Non-Spendable 31,487,459 29,499,520 (1,987,939) Restricted Pension Trust 10,249,738 11,381,922 1,132,184 Committed Operational Carryovers 1,778,800 1,209,870 (568,930) Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 10,000,000 10,000,000 - Economic Disaster 6,800,000 11,000,000 4,200,000 Capital Replacement Reserve 6,540,000 10,000,000 3,460,000 Total Committed 30,118,800 37,209,870 7,091,070 Assigned Public Safety Fire Services 10,491,654 11,423,931 932,277 Measure G Sales Tax 8,736,219 15,128,658 6,392,439 Capital Projects 13,155,144 13,431,089 275,945 Total Assigned 32,383,017 39,983,678 7,600,661 Unassigned 19,094,651 24,241,566 5,146,915 TOTAL FUND BALANCE 123,333,665 142,316,556 18,982,891 38 • Committed reserves increased by $7,091,070. The decrease of $568,930 in operational carryovers is detailed in Exhibit D. During the FY 2020/21 Mid-Year Budget Report, the Unassigned balance was reduced and used to fund the following reserves: • $4,200,000 for Economic Disaster Reserves • $3,460,000 for Capital Replacement Reserves In December 2020, Council allocated an additional $500,000 from the Economic Disaster Reserve to continue to support businesses affected by the pandemic. In February 2021, Council was able to replenish the Economic Disaster Reserve, and chose to allocate additional funding for the Capital Replacement Reserve. At this time, all four of the City’s reserve categories (Natural Disaster, Economic Disaster, Cash Flow and Capital Replacement) are fully funded to policy targets. • An increase of $8.4 million in assigned reserves was primarily due to Measure G sales tax revenue of $6,392,439 and multi-year capital improvement project funding of $275,945. The 2021/22 Mid-Year Budget Report will be presented in February 2022. The Mid-Year Budget Report may include funding options for Council to consider placing a portion of unassigned reserves into Restricted or Committed reserves which are not fully funded. Staff will continue to monitor current economic impacts, local business restrictions, and current operating expenses to determine if additional reserve funding is recommended during the Mid-Year Budget Report. MEASURE G SUMMARY The Financial Advisory Commission oversees and audits the use of Measure G sales tax revenues and prepares the annual Measure G Sales Tax Oversight Report. The summary below provides a preview of the revenues and expenditures to date. The Measure G reserve balance ended the fiscal year at $15,128,658. 39 The FY 2020/21 Year-End Budget Report provides the City Council and residents with an overview of significant variances and reflects the City’s commitment to fiscal discipline and transparency. As impacts from COVID-19 remain, the City will need to continue to make fiscally responsible and strategic decisions to address the financial challenges ahead. _________________________________________________________ Fiscal Year (FY) REVENUES 2016/17 Actual 1,462,650$ 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 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 40 Questions regarding this report may be directed to the Finance Department by calling 760-777-7150 or by email at finance@laquintaca.gov. 41 2019/20 Actuals 2020/21 Original Budget 2020/21 Final Budget 2020/21 Actuals 101 - GENERAL FUND 310 - Tax Revenues 2,429,495 2,517,000 2,579,000 2,578,492101-0000-40310 Property Tax Revenue 4,664,722 4,700,000 4,700,000 4,769,373101-0000-40311 No-Low City Property Tax 2,559,256 2,400,000 1,600,000 1,884,546101-0000-40315 RPTTF Pass Through 8,825,489 7,628,700 9,428,700 10,729,160101-0000-41320 State Sales Tax 10,310,526 8,197,200 10,617,200 12,594,389101-0000-41326 Measure G Sales Tax 662,545 500,000 850,000 1,568,997101-0000-41327 Document Transfer Tax 4,426,061 4,031,300 4,031,300 4,545,117101-0000-41400 TOT - Hotels 2,851,145 2,093,800 4,393,800 6,213,353101-0000-41401 TOT - Short Term Vac. Rentals 63,581 80,000 80,000 69,987101-0000-41402 TOT - Bed and Breakfast 262,694 250,000 250,000 243,520101-0000-41416 TOT - Resort Fees 852,858 770,000 770,000 894,559101-0000-41505 Franchise Taxes - Burrtec 159,003 130,000 130,000 173,961101-0000-41508 Southern California Gas Franchise Fee 671,888 600,000 600,000 644,058101-0000-41509 Cable Television Franchise Fee 256,952 305,000 305,000 229,886101-0000-41510 Communications Franchise Fees 4,290,417 4,393,000 4,543,000 4,376,455101-0000-41800 Property Tax in Lieu of VLF 310 - Tax Revenues Totals:43,286,631 38,596,000 44,878,000 51,515,856 320 - Licenses & Permits 13,975 9,000 9,000 5,850101-0000-41411 STVR Inspection Fee 279,878 117,600 167,600 355,690101-0000-41415 STVR Registration Fee 371,294 276,000 276,000 373,801101-0000-41600 Business Licenses 1,195 400 400 2,800101-0000-41610 Film Permits 444,444 135,000 135,000 437,209101-0000-42400 Building Permits 98,478 49,500 49,500 75,101101-0000-42401 Plumbing Permits 92,896 67,500 67,500 90,394101-0000-42402 Mechanical Permits 77,005 45,000 45,000 65,016101-0000-42403 Electrical Permits 174,893 135,000 135,000 216,745101-0000-42404 Miscellaneous Permits 6,020 8,800 8,800 3,630101-0000-42405 Garage Sale Permits 450 200 200 250101-0000-42406 Golf Cart Permits 26,718 9,900 9,900 18,237101-0000-42408 Grading Permits 1,687 2,800 2,800 0101-0000-42410 Driveway Permits 73,338 45,000 45,000 55,610101-0000-42420 Fire Plan Review Fee 56,535 27,000 27,000 60,030101-0000-42421 Fire Inspection Fee 2,142 1,800 1,800 2,850101-0000-42430 Transportation Permits 21,640 10,400 10,400 8,828101-0000-42431 Conditional Use Permits 2,789 2,500 2,500 5,400101-0000-42433 Minor Use Permit 19,695 12,900 12,900 11,616101-0000-42434 Sign Permit 24,948 38,900 38,900 56,228101-0000-42435 Site Development Permit 11,709 10,900 10,900 5,313101-0000-42436 Final Landscaping Plans 0 0 0 6,154101-0000-42437 Development Agreement 5,052 5,700 5,700 800101-0000-42439 Temporary Use Permit 96,908 120,000 120,000 154,626101-0000-43632 Public Works Permits 7,967 5,000 5,000 12,431101-0000-43638 NPDES Inspections 320 - Licenses & Permits Totals:1,911,656 1,136,800 1,186,800 2,024,611 330 - Intergovernmental 0 0 98,900 0101-0000-41700 Federal Government Revenue 0 0 502,034 502,034101-0000-41710 State Gov't Revenue 7,057,071 7,270,200 7,270,200 8,415,051101-0000-42500 Fire Service Credit 0 751,500 1,101,500 70,110101-0000-42501 Fire Service Reserves 0 455,000 368,000 367,882101-0000-43633 CSA 152 Assessments 0 0 0 17,859101-0000-43634 CVWD 22,668 3,000 3,000 3,000101-0000-43650 Contributions from Other Agencies 330 - Intergovernmental Totals:7,079,738 8,479,700 9,343,634 9,375,935 340 - Charges for Services 19,432 27,000 1,000 6,891101-0000-42200 Leisure Enrichment 6,668 3,600 600 84101-0000-42202 Gift Shop 23,138 27,000 0 0101-0000-42210 Youth Sports 705 3,600 0 75101-0000-42211 Adult Sports 27,972 21,000 1,000 (50)101-0000-42212 Facility Rentals 12,865 12,000 0 0101-0000-42213 Special Events 2,429,495 2,517,000 2,579,000 2,578,492 4,664,722 4,700,000 4,700,000 4,769,373 2,559,256 2,400,000 1,600,000 1,884,546 8,825,489 7,628,700 9,428,700 10,729,160 10,310,526 8,197,200 10,617,200 12,594,389 662,545 500,000 850,000 1,568,997 4,426,061 4,031,300 4,031,300 4,545,117 2,851,145 2,093,800 4,393,800 6,213,353 63,581 80,000 80,000 69,987 262,694 250,000 250,000 243,520 852,858 770,000 770,000 894,559 159,003 130,000 130,000 173,961 671,888 600,000 600,000 644,058 256,952 305,000 305,000 229,886 4,290,417 4,393,000 4,543,000 4,376,455 43,286,631 38,596,000 44,878,000 51,515,856 13,975 9,000 9,000 5,850 279,878 117,600 167,600 355,690 371,294 276,000 276,000 373,801 1,195 400 400 2,800 444,444 135,000 135,000 437,209 98,478 49,500 49,500 75,101 92,896 67,500 67,500 90,394 77,005 45,000 45,000 65,016 174,893 135,000 135,000 216,745 6,020 8,800 8,800 3,630 450 200 200 250 26,718 9,900 9,900 18,237 1,687 2,800 2,800 0 73,338 45,000 45,000 55,610 56,535 27,000 27,000 60,030 2,142 1,800 1,800 2,850 21,640 10,400 10,400 8,828 2,789 2,500 2,500 5,400 19,695 12,900 12,900 11,616 24,948 38,900 38,900 56,228 11,709 10,900 10,900 5,313 0 0 0 6,154 5,052 5,700 5,700 800 96,908 120,000 120,000 154,626 7,967 5,000 5,000 12,431 1,911,656 1,136,800 1,186,800 2,024,611 0 0 98,900 0 0 0 502,034 502,034 7,057,071 7,270,200 7,270,200 8,415,051 0 751,500 1,101,500 70,110 0 455,000 368,000 367,882 0 0 0 17,859 22,668 3,000 3,000 3,000 7,079,738 8,479,700 9,343,634 9,375,935 19,432 27,000 1,000 6,891 6,668 3,600 600 84 23,138 27,000 0 0 705 3,600 0 75 27,972 21,000 1,000 (50) 12,865 12,000 0 0 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS BY CATEGORY EXHIBIT A 2020/21 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2020/21 Financial Statements 42 2019/20 Actuals 2020/21 Original Budget 2020/21 Final Budget 2020/21 Actuals 33,689 33,000 3,000 6,979101-0000-42214 Wellness Center Leisure Enrichment 956 900 0 0101-0000-42216 Wellness Center Special Events 104,144 90,000 2,000 10,425101-0000-42218 Wellness Center Memberships 4,968 0 0 2,306101-0000-42300 Cash Over/Short 275 200 200 95101-0000-42303 NSF Charges 13,060 2,300 2,300 38,000101-0000-42412 Minor Adjustment, Plan Checks 40,600 13,500 13,500 55,357101-0000-42415 Tentative Tract Map 29,397 13,500 13,500 29,685101-0000-42416 Digitization/Records Management 3,920 1,200 1,200 4,400101-0000-42417 Modification by Applicant 2,000 1,300 1,300 8,750101-0000-42440 Appeals - Permits, Licenses, Projects, Bids 0 0 0 405101-0000-42441 Planning Compliance Review 10,707 7,600 7,600 1,052101-0000-42443 Zone Change 2,735 4,000 4,000 11,753101-0000-42445 Environmental Assessment 10,465 4,500 4,500 0101-0000-42446 General Plan Amendment 7,450 4,500 4,500 9,750101-0000-42447 Home Occupations 10,090 9,000 9,000 3,005101-0000-42448 Tentative Parcel Map 9,552 0 0 14,329101-0000-42451 Specific Plan 4,508 0 0 9,016101-0000-42460 Pre-Application Review 563,741 405,000 405,000 521,451101-0000-42600 Building Plan Check Fees 534 300 300 498101-0000-42610 SMIP Fees 492 300 300 473101-0000-42615 CBSC Administrative Fees 223,148 99,000 99,000 225,852101-0000-42810 Public Works Dev. Plan Check Fee 2,772 1,200 1,200 1,787101-0000-43631 CVMSHCP Admin Fee 340 - Charges for Services Totals:1,169,982 785,500 575,000 962,368 350 - Fines, Forfeitures & Abatements 81,952 40,000 40,000 504,205101-0000-42700 Administrative Citations 3,756 3,000 3,000 5,812101-0000-42701 Lot Abatement 41,931 20,000 20,000 33,669101-0000-42702 Vehicle Abatement 59,473 70,000 70,000 67,962101-0000-42703 Vehicle Impound Fee 113,721 105,000 105,000 110,045101-0000-42705 Motor Vehicle Code Fines 42,048 20,000 20,000 48,726101-0000-42706 Parking Violations 1,885 1,000 1,000 941101-0000-42707 Misc Fines 8,436 5,000 5,000 8,246101-0000-42708 Graffiti Removal 17,189 20,000 0 0101-0000-42709 False Alarm Fees - Police 5,322 6,000 0 (600)101-0000-42710 False Alarm Fees - Fire 350 - Fines, Forfeitures & Abatements Totals:375,713 290,000 264,000 779,006 360 - Use of Money & Property 1,252,458 700,000 700,000 897,509101-0000-41900 Allocated Interest 1,624,037 0 0 (666,023)101-0000-41910 GASB 31 Interest 143,932 145,000 145,000 147,720101-0000-42120 Lease Revenue 360 - Use of Money & Property Totals:3,020,427 845,000 845,000 379,206 370 - Miscellaneous 196,035 400,000 400,000 419,472101-0000-41410 Zoning Change Mitigation Fees 20,854 17,000 17,000 0101-0000-41504 AMR Compliance 55,892 111,000 111,000 113,041101-0000-41507 Burrtec Admin Cost Reimbursement 1,500 0 0 0101-0000-41920 Memorial Tree Revenue 42,865 10,000 10,000 3,196101-0000-42000 Insurance Recoveries 15 100 100 15101-0000-42140 Sales of Publications & Materials 11,116 15,000 15,000 1,233101-0000-42301 Miscellaneous Revenue 51,099 40,000 40,000 104,930101-0000-42305 Miscellaneous Reimbursements 5,175 0 0 0101-0000-43505 Credit Card Fee Revenue 136,491 0 0 0101-0000-45000 Sale of Other Assets 694,234 0 0 591,946101-0000-48500 Extraordinary Gain 370 - Miscellaneous Totals:1,215,277 593,100 593,100 1,233,835 33,689 33,000 3,000 6,979 956 900 0 0 104,144 90,000 2,000 10,425 4,968 0 0 2,306 275 200 200 95 13,060 2,300 2,300 38,000 40,600 13,500 13,500 55,357 29,397 13,500 13,500 29,685 3,920 1,200 1,200 4,400 2,000 1,300 1,300 8,750 0 0 0 405 10,707 7,600 7,600 1,052 2,735 4,000 4,000 11,753 10,465 4,500 4,500 0 7,450 4,500 4,500 9,750 10,090 9,000 9,000 3,005 9,552 0 0 14,329 4,508 0 0 9,016 563,741 405,000 405,000 521,451 534 300 300 498 492 300 300 473 223,148 99,000 99,000 225,852 2,772 1,200 1,200 1,787 1,169,982 785,500 575,000 962,368 81,952 40,000 40,000 504,205 3,756 3,000 3,000 5,812 41,931 20,000 20,000 33,669 59,473 70,000 70,000 67,962 113,721 105,000 105,000 110,045 42,048 20,000 20,000 48,726 1,885 1,000 1,000 941 8,436 5,000 5,000 8,246 17,189 20,000 0 0 5,322 6,000 0 (600) 375,713 290,000 264,000 779,006 1,252,458 700,000 700,000 897,509 1,624,037 0 0 (666,023) 143,932 145,000 145,000 147,720 3,020,427 845,000 845,000 379,206 196,035 400,000 400,000 419,472 20,854 17,000 17,000 0 55,892 111,000 111,000 113,041 1,500 0 0 0 42,865 10,000 10,000 3,196 15 100 100 15 11,116 15,000 15,000 1,233 51,099 40,000 40,000 104,930 5,175 0 0 0 136,491 0 0 0 694,234 0 0 591,946 1,215,277 593,100 593,100 1,233,835 * * * * *Non-Cash Transactions CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS BY CATEGORY EXHIBIT A 2020/21 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2020/21 Financial Statements 43 2019/20 Actuals 2020/21 Original Budget 2020/21 Final Budget 2020/21 Actuals 380 - Transfers In 29,809 0 0 0101-0000-49500 Transfers In 380 - Transfers In Totals:29,809 0 0 0 101 - GENERAL FUND Totals:58,089,234 50,726,100 57,685,534 66,270,818 29,809 0 0 0 29,809 0 0 0 58,089,234 50,726,100 57,685,534 66,270,818 Non-Cash Transactions Adjusted Operating Revenues (2,318,271) (55,770,962) 74,077 (66,344,895) CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS BY CATEGORY EXHIBIT A 2020/21 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2020/21 Financial Statements 44 2019/20 Actuals 2020/21 Original Budget 2020/21 Final Budget 2020/21 Actuals 1001 - City Council 250,144 292,900 292,900 233,538 Salaries and Benefits 233,237 274,400 274,400 228,115 Maintenance & Operations 16,907 18,500 18,500 5,423 1002 - City Manager 751,206 707,000 767,000 669,515 Salaries and Benefits 517,987 446,300 456,300 468,904 Contract Services 63,102 87,000 137,000 44,029 Maintenance & Operations 109,516 110,000 110,000 92,882 Internal Service Charges 60,600 63,700 63,700 63,700 1003 - City Attorney 550,548 565,000 565,000 457,354 Contract Services 550,548 565,000 565,000 457,354 1004 - Human Resources 521,077 264,400 304,400 215,251 Salaries and Benefits 422,160 142,100 152,100 149,396 Contract Services 16,908 26,500 56,500 9,906 Maintenance & Operations 40,710 77,000 77,000 37,150 Internal Service Charges 41,300 18,800 18,800 18,800 1005 - City Clerk 502,284 593,400 639,100 494,173 Salaries and Benefits 406,655 378,200 398,200 346,786 Contract Services 24,518 129,000 153,200 62,728 Maintenance & Operations 17,410 13,200 14,700 11,660 Internal Service Charges 53,700 73,000 73,000 73,000 1006 - Finance 1,194,343 1,393,400 1,423,400 1,304,355 Salaries and Benefits 930,571 1,034,800 1,034,800 986,090 Contract Services 125,424 174,500 204,500 139,743 Maintenance & Operations 30,448 17,500 17,500 11,922 Internal Service Charges 107,900 166,600 166,600 166,600 1007 - Central Services 17,071,668 6,454,100 23,659,331 9,503,897 Salaries and Benefits 4,494,831 1,593,100 2,925,020 2,192,550 Maintenance & Operations 103,397 201,200 301,200 154,011 Other Expenses 87,769 0 75,000 40,291 Capital Expenses 793,484 5,000 368,897 371,760 Internal Service Charges 667,100 702,900 702,900 702,900 Transfers Out 10,925,087 3,951,900 19,286,314 6,042,385 2001 - Police 16,278,322 17,506,700 17,204,700 16,479,907 Contract Services 16,130,014 17,414,300 17,042,300 16,395,945 Maintenance & Operations 18,904 18,000 38,000 14,594 Utilities 12,733 14,000 14,000 14,968 Capital Expenses 65,072 6,000 56,000 0 Internal Service Charges 51,600 54,400 54,400 54,400 2002 - Fire 6,804,305 8,021,700 9,165,422 7,037,802 Salaries and Benefits 189,319 270,900 270,900 270,532 Contract Services 6,346,342 7,208,500 7,208,500 6,164,684 Maintenance & Operations 98,793 204,100 204,100 51,326 Utilities 62,858 83,000 83,000 70,552 Capital Expenses 16,010 145,000 614,000 57,472 Internal Service Charges 82,200 110,200 110,200 110,200 Transfers Out 8,782 0 674,722 313,037 3001 - Community Resources Administration 823,403 700,600 790,600 699,783 Salaries and Benefits 625,944 489,300 489,300 494,944 Contract Services 60,482 67,000 77,000 12,646 Maintenance & Operations 74,978 78,800 158,800 126,692 Internal Service Charges 62,000 65,500 65,500 65,500 3002 - Wellness Center Operations 670,974 543,800 558,800 495,568 Salaries and Benefits 525,609 384,500 384,500 374,073 Contract Services 46,577 37,300 47,300 13,875 250,144 292,900 292,900 233,538 233,237 274,400 274,400 228,115 16,907 18,500 18,500 5,423 751,206 707,000 767,000 669,515 517,987 446,300 456,300 468,904 63,102 87,000 137,000 44,029 109,516 110,000 110,000 92,882 60,600 63,700 63,700 63,700 550,548 565,000 565,000 457,354 550,548 565,000 565,000 457,354 521,077 264,400 304,400 215,251 422,160 142,100 152,100 149,396 16,908 26,500 56,500 9,906 40,710 77,000 77,000 37,150 41,300 18,800 18,800 18,800 502,284 593,400 639,100 494,173 406,655 378,200 398,200 346,786 24,518 129,000 153,200 62,728 17,410 13,200 14,700 11,660 53,700 73,000 73,000 73,000 1,194,343 1,393,400 1,423,400 1,304,355 930,571 1,034,800 1,034,800 986,090 125,424 174,500 204,500 139,743 30,448 17,500 17,500 11,922 107,900 166,600 166,600 166,600 17,071,668 6,454,100 23,659,331 9,503,897 4,494,831 1,593,100 2,925,020 2,192,550 103,397 201,200 301,200 154,011 87,769 0 75,000 40,291 793,484 5,000 368,897 371,760 667,100 702,900 702,900 702,900 10,925,087 3,951,900 19,286,314 6,042,385 16,278,322 17,506,700 17,204,700 16,479,907 16,130,014 17,414,300 17,042,300 16,395,945 18,904 18,000 38,000 14,594 12,733 14,000 14,000 14,968 65,072 6,000 56,000 0 51,600 54,400 54,400 54,400 6,804,305 8,021,700 9,165,422 7,037,802 189,319 270,900 270,900 270,532 6,346,342 7,208,500 7,208,500 6,164,684 98,793 204,100 204,100 51,326 62,858 83,000 83,000 70,552 16,010 145,000 614,000 57,472 82,200 110,200 110,200 110,200 8,782 0 674,722 313,037 823,403 700,600 790,600 699,783 625,944 489,300 489,300 494,944 60,482 67,000 77,000 12,646 74,978 78,800 158,800 126,692 62,000 65,500 65,500 65,500 670,974 543,800 558,800 495,568 525,609 384,500 384,500 374,073 46,577 37,300 47,300 13,875 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT EXHIBIT B 2020/21 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2020/21 Financial Statements 45 2019/20 Actuals 2020/21 Original Budget 2020/21 Final Budget 2020/21 Actuals Maintenance & Operations 35,789 43,500 48,500 29,119 Internal Service Charges 63,000 78,500 78,500 78,500 3003 - Recreation Programs & Special Events 456,413 438,700 478,700 208,501 Salaries and Benefits 135,528 158,300 158,300 77,563 Contract Services 0 30,000 30,000 23,678 Maintenance & Operations 277,885 202,000 242,000 57,250 Other Expenses 0 0 0 1,610 Internal Service Charges 43,000 48,400 48,400 48,400 3005 - Parks Maintenance 1,958,099 1,670,800 1,814,400 1,782,193 Salaries and Benefits 344,583 331,100 331,100 348,682 Contract Services 502,680 430,000 458,000 455,927 Maintenance & Operations 395,417 263,500 387,500 376,216 Utilities 277,719 337,000 328,600 292,167 Internal Service Charges 437,700 309,200 309,200 309,200 3007 - Marketing & Community Relations 1,052,957 1,110,300 1,228,800 1,105,482 Salaries and Benefits 231,383 211,000 211,000 224,786 Contract Services 228,232 189,700 218,200 223,963 Maintenance & Operations 565,741 672,100 762,100 619,232 Internal Service Charges 27,600 37,500 37,500 37,500 3008 - Public Buildings 1,069,132 1,140,700 1,190,700 1,119,812 Salaries and Benefits 375,193 464,400 464,400 465,083 Contract Services 150,704 155,800 205,800 159,208 Maintenance & Operations 135,454 129,500 129,500 115,158 Utilities 129,580 156,000 156,000 145,363 Internal Service Charges 278,200 235,000 235,000 235,000 6001 - Design & Development Administration 869,367 519,300 649,300 639,565 Salaries and Benefits 652,125 357,100 407,100 392,319 Contract Services 50,178 35,000 115,000 130,192 Maintenance & Operations 11,664 11,900 11,900 1,753 Internal Service Charges 155,400 115,300 115,300 115,300 6002 - Planning 507,224 513,900 613,900 520,082 Salaries and Benefits 342,570 366,600 366,600 355,610 Contract Services 113,758 80,000 180,000 93,147 Maintenance & Operations 9,596 11,100 11,100 15,126 Internal Service Charges 41,300 56,200 56,200 56,200 6003 - Building 789,707 777,100 787,100 717,997 Salaries and Benefits 516,746 529,600 529,600 485,828 Contract Services 136,314 100,000 110,000 92,067 Maintenance & Operations 9,847 9,500 9,500 2,102 Internal Service Charges 126,800 138,000 138,000 138,000 6004 - Code Compliance/Animal Control 1,144,286 1,196,800 1,310,700 1,138,317 Salaries and Benefits 732,405 699,400 759,300 648,166 Contract Services 220,475 264,500 321,500 265,571 Maintenance & Operations 6,607 16,900 13,900 8,580 Internal Service Charges 184,800 216,000 216,000 216,000 6006 - The Hub 975,546 908,300 965,300 830,952 Salaries and Benefits 730,616 666,100 666,100 580,499 Contract Services 128,167 100,000 157,000 114,027 Maintenance & Operations 6,563 11,200 11,200 5,426 Internal Service Charges 110,200 131,000 131,000 131,000 7001 - Public Works Administration 13,288 719,200 719,200 509,466 Salaries and Benefits 13,288 473,400 473,400 432,718 Contract Services 0 150,000 150,000 1,254 Maintenance & Operations 0 20,900 20,900 594 35,789 43,500 48,500 29,119 63,000 78,500 78,500 78,500 456,413 438,700 478,700 208,501 135,528 158,300 158,300 77,563 0 30,000 30,000 23,678 277,885 202,000 242,000 57,250 0 0 0 1,610 43,000 48,400 48,400 48,400 1,958,099 1,670,800 1,814,400 1,782,193 344,583 331,100 331,100 348,682 502,680 430,000 458,000 455,927 395,417 263,500 387,500 376,216 277,719 337,000 328,600 292,167 437,700 309,200 309,200 309,200 1,052,957 1,110,300 1,228,800 1,105,482 231,383 211,000 211,000 224,786 228,232 189,700 218,200 223,963 565,741 672,100 762,100 619,232 27,600 37,500 37,500 37,500 1,069,132 1,140,700 1,190,700 1,119,812 375,193 464,400 464,400 465,083 150,704 155,800 205,800 159,208 135,454 129,500 129,500 115,158 129,580 156,000 156,000 145,363 278,200 235,000 235,000 235,000 869,367 519,300 649,300 639,565 652,125 357,100 407,100 392,319 50,178 35,000 115,000 130,192 11,664 11,900 11,900 1,753 155,400 115,300 115,300 115,300 507,224 513,900 613,900 520,082 342,570 366,600 366,600 355,610 113,758 80,000 180,000 93,147 9,596 11,100 11,100 15,126 41,300 56,200 56,200 56,200 789,707 777,100 787,100 717,997 516,746 529,600 529,600 485,828 136,314 100,000 110,000 92,067 9,847 9,500 9,500 2,102 126,800 138,000 138,000 138,000 1,144,286 1,196,800 1,310,700 1,138,317 732,405 699,400 759,300 648,166 220,475 264,500 321,500 265,571 6,607 16,900 13,900 8,580 184,800 216,000 216,000 216,000 975,546 908,300 965,300 830,952 730,616 666,100 666,100 580,499 128,167 100,000 157,000 114,027 6,563 11,200 11,200 5,426 110,200 131,000 131,000 131,000 13,288 719,200 719,200 509,466 13,288 473,400 473,400 432,718 0 150,000 150,000 1,254 0 20,900 20,900 594 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT EXHIBIT B 2020/21 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2020/21 Financial Statements 46 2019/20 Actuals 2020/21 Original Budget 2020/21 Final Budget 2020/21 Actuals Internal Service Charges 0 74,900 74,900 74,900 7002 - Public Works Development Services 556,793 390,200 390,200 354,895 Salaries and Benefits 330,328 149,800 149,800 142,493 Contract Services 154,430 190,000 190,000 162,958 Maintenance & Operations 1,235 2,000 2,000 1,044 Internal Service Charges 70,800 48,400 48,400 48,400 7003 - Streets 123,180 484,300 494,300 437,000 Salaries and Benefits 8,655 308,800 308,800 293,784 Contract Services 0 75,000 95,000 58,389 Maintenance & Operations 17,490 29,300 18,900 17,369 Other Expenses 0 15,000 5,000 0 Capital Expenses 97,035 0 10,400 11,257 Internal Service Charges 0 56,200 56,200 56,200 7006 - Engineering Services 1,168,884 999,000 1,062,300 640,737 Salaries and Benefits 674,816 314,400 314,400 300,006 Contract Services 388,478 295,000 355,000 276,711 Maintenance & Operations 9,190 9,300 12,600 7,820 Other Expenses 0 324,100 324,100 0 Internal Service Charges 96,400 56,200 56,200 56,200 GENERAL FUND EXPENSES 56,103,152 47,911,600 67,075,553 47,596,141 0 74,900 74,900 74,900 556,793 390,200 390,200 354,895 330,328 149,800 149,800 142,493 154,430 190,000 190,000 162,958 1,235 2,000 2,000 1,044 70,800 48,400 48,400 48,400 123,180 484,300 494,300 437,000 8,655 308,800 308,800 293,784 0 75,000 95,000 58,389 17,490 29,300 18,900 17,369 0 15,000 5,000 0 97,035 0 10,400 11,257 0 56,200 56,200 56,200 1,168,884 999,000 1,062,300 640,737 674,816 314,400 314,400 300,006 388,478 295,000 355,000 276,711 9,190 9,300 12,600 7,820 0 324,100 324,100 0 96,400 56,200 56,200 56,200 56,103,152 47,911,600 67,075,553 47,596,141 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT EXHIBIT B 2020/21 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2020/21 Financial Statements Non-Cash Transactions Adjusted Operating Expenses (327,338) (55,775,814) (0.00) (47,596,141) 47 EXHIBIT C Project #Project Name Fire Reserves General Fund Measure G TOTAL 91004 Dune Palms Road Improvements 45,947$ - 45,947$ 151603 La Quinta Village Complete Streets - 489,741 489,741 151609 La Quinta X-Park - 809,727 809,727 151612 Citywide Drainage Enhancements 465,764 - 465,764 2021ADA ADA Improvements 20,000 - 20,000 2021PMP Pavement Management 861,404 - 861,404 2021STI Sidewalk Improvements 67,184 - 67,184 201603 Landscape Renovations 131,782 5,188,389 5,320,171 201606 Civic Center Campus Lake 524,263 - 524,263 201608 SilverRock Event Space - 425,068 425,068 201704 Eisenhower Retention Basin - 642,183 642,183 201709 Ave. 53/Jefferson Roundabout 630,650 - 630,650 201805 Corporate Yard Admin. Offices - 355,240 355,240 201901 Village Art Plaza Promenade - 309,505 309,505 201905 Highway 111 Corridor - 952,259 952,259 201907 Fire Station 70 Revitalization 361,686 - - - 201908 Citywide Catch Basin Modifications 250,000 - 250,000 201923 Washington St. at Ave. 50 77,110 - 77,110 201924 5 Year Pavement Management Plan Update (24,175) - (24,175) 202007 SilverRock Retention Basin Soil Stabilization - 422,828 422,828 SAVINGS Prior CIP Project Savings 389,548 - 389,548 999902 Jefferson Interchange 34,987 - 34,987 - TOTAL 361,686$ 3,474,463$ 9,594,940$ 13,431,089$ 3% 26%71%100% (Negative balances represent temporary funding until grants are received) GENERAL FUND Capital Improvement Project Carryovers from 2020/21 to 2021/22 48 EXHIBIT D AMENDED CARRYOVERS Estimated carryovers from the 2020/21 to 2021/22 budget were estimated based on projected invoices in the Spring of 2021. Upon completion of the final audit, Finance verifies account balances and carryovers. Amended carryovers will be added to the 2021/22 budget. Vendor/Program Account Number Description Estimated Revised Litigation services 101-1003-60153 Attorney fees -$ 100,000$ Marketing efforts to attract group business to hotels 101-1007-60536 TOT Resort Rebate Program 150,000$ 150,000$ Vehicle purchase/improvements 101-2001-71031 Vehicles -$ 10,000$ Equip Emergency Services vehicle 101-2002-71031 Vehicles 13,100$ 7,770$ Fire Station generators, ladder truck 101-2002-80101 Machinery & Equipment -$ 468,000$ Boys & Girls Club programming 101-3001-60135 Boys & Girls Club -$ 20,000$ Ironman Triathlon postponed to 2021 101-3003-60149 Community Experiences 75,000$ 75,000$ La Quinta Art Celebration postponed to 2021 101-3003-60512 LQ Art Event 45,000$ 45,000$ Short-Term Vacation Rental Program 101-6006-60103 Professional Services -$ 10,000$ La Quinta's share of the CVAG Art & Music Line 101-7006-60480 Contribution to other Agencies 300,000$ 324,100$ $ 583,100 $ 1,209,870 Library Fund building improvements 202-3004-72110 Roof Repairs $- $ 50,000 Council Chambers A/V equipment 502-0000-80100 Machinery & Equipment 50,000$ 80,000$ Asset Management Software 502-0000-71048 Public Works Software Enhancements $ 73,000 $ 73,000 $ 123,000 $ 203,000 $ 706,100 $ 1,412,870 Revised Continuing Appropriations/Carryovers from 2020/21 to 2021/22 GENERAL FUND CARRYOVERS SPECIAL FUNDS CARRYOVERS TOTAL CARRYOVERS FOR ALL FUNDS NOTE: In June 2021 when the budget was adopted, all carryovers were estimates based on projected invoices to end fiscal year 2020/21. Upon completion of the final audit, Finance verified account balances and additional carryover recommendations based on current budgetary needs and constraints due to COVID. In no event shall a carryover exceed the revised per acccount amount above. 49 50 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Members of the Financial Advisory Commission FROM: Claudia Martinez, Finance Director DATE: February 9, 2022 SUBJECT: FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES In addition to items presented as staff reports, the Finance Department would like to provide updates on the following matters. COMMUNITY WORKSHOP The 2022 Community Workshop has been postponed due to a surge in COVID-19. Once a new workshop date is selected, the City will send out an updated workshop invitation. AUDIT & FINANCIAL REPORTING • Filed the City’s Annual State Controller’s Reports for the City and the Finance Authority • Submitted Annual Development Project Fee Reports for all Development Impact Fee Funds and the Art in Public Place Fund to required external agencies and will present reports to City Council on February 15, 2022. • Single Audit for federal funds for fiscal year 2020/21 is currently in process and will be filed by March 31, 2022. • Citywide Comprehensive fiscal year 2020/21 Audit is currently in process. The fiscal year (FY) 2020/21 Annual Comprehensive Financial Report (ACFR) remains in draft form with an expected completion date of 2/28/2022. The City has been granted an extension to file the report from the Government Finance Officers Association of the United States and Canada (GFOA) for the Certificate of Achievement for Excellence in Financial Reporting. The City has provided comments to the auditing firm on reporting requirements, the presentation of information, notes to the financial statements, statistical section, and management letters to ensure that all requirements are met. COMMITTEE UPDATES • 10 Year Financial Projections Subcommittee (Commissioners Batavick, Way) o In Progress, draft to be presented at next meeting DEPARTMENTAL REPORT ITEM NO. 1 51 • FY 2022/23 General Fund Operating Budget Subcommittee (Commissioners Anderson, Dorsey, Mast) o Finance Director to coordinate meeting timeline with committee members • Reserve Policy Update (Spring of 2022) o Coordination with the City Clerk’s office o Selection of sub-committee at April or May meeting PERSONNEL UPDATES The Accounting Manager recruitment has been published and is scheduled to close on February 10, 2022. It is important to note the items mentioned in this update are in addition to the daily functions of the Finance Department. 52 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Members of the Financial Advisory Commission FROM: Rosemary Hallick, Financial Services Analyst DATE: February 9, 2022 SUBJECT: THIRD QUARTER 2021 (JULY-SEPTEMBER) 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 July to September 2021. • La Quinta’s overall adjusted sales tax receipts for major industry groups increased 18.3%, which compares to Riverside County at 24.6% and the state at 18.3%. The large increases are in part due to the COVID- 19 pandemic lockdowns in Q3 2020, measures the state put in place to assist businesses (such as delayed filings with no penalties), and a resurgence in consumer spending at restaurants for Q3 2021. • 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 39% of Measure G revenue. • Autos and transportation made up 11% of sales tax revenue and 17% 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 15% of our sales tax revenue. DEPARTMENTAL REPORT ITEM NO. 2 53 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 2021/22 budget was conservatively forecast based on known information as of Spring 2021, and is subject to adjustment to reflect actual incoming tax receipts. Fiscal year sales tax collections are shown in the chart below. Attachment 1: HdL Q3 Sales Tax Update Quarter Payment Bradley Burns 33060 Measure G 520 MG % of BB % change from LY 3 July 2021 Advance 855,803$ 996,605$ 116.45% 24.39% 3 August 2021 advance 1,054,672$ 1,288,136$ 122.14% 17.72% 3 September 2021 3rd Qtr payment 613,938$ 914,607$ 148.97% 31.20% 3 Total 2021 2,524,413$ 3,199,348$ 126.74% 23.24% 4 October 2021 advance 983,637$ 1,216,772$ 123.70% 12.16% 4 November 2021 advance 930,977$ 1,160,715$ 124.68% -7.82% FY 2021/22 Total YTD 4,439,028$ 5,576,835$ FY 2021/22 Budget 10,000,000$ 11,500,000$ 54 www.hdlcompanies.com | 888.861.0220 Q3 2020* Q3 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 Fuel and Service Stations Food and Drugs Business and Industry TOP 25 PRODUCERSCITY OF LA QUINTA HIGHLIGHTS Published by HdL Companies in Winter 2022 Best Buy Circle K Cliffhouse Costco Floor & Decor G & M Oil Genesis/Hyundai of La Quinta Hobby Lobby Home Depot In N Out Burger Kohls La Quinta Chevrolet & Cadillac La Quinta Resort and PGA West Lowes Marshalls McDonald’s PGA West Private Ross Target TJ Maxx Torre Nissan Tower Mart USA Gasoline Vons Walmart Supercenter SALES TAX UPDATE CITY OF LA QUINTA 3Q 2021 (JULY - SEPTEMBER) La Quinta’s receipts from July through September were 17.9% above the third sales period in 2020. Excluding reporting aberrations, actual sales were up 18.3%. Consumers have flocked back to restaurants, despite increasing menu prices caused by the higher costs of wholesale groceries and labor. General consumer goods posted positive growth as consumers continued to enjoy shopping without lockdowns or restrictions. Low supply and high demand continue to impact prices in the autos-transportation industry. Crude oil prices have increased 63% in the last year, pushing up revenue from fuel-service stations. The rising price of construction materials combined with higher shipping costs has pushed up revenue from building-construction. Supply chain issues continue to impact sales from the business-industry sector. Revenue from food-drugs dipped slightly as consumers abandoned cooking at home in favor of dining out. Measure G, the City’s 1% voter- approved transactions and use tax, brought in an additional $3,121,852 in revenue with the largest increases seen in autos-transportation and general consumer goods. The City’s share of the countywide use tax pool increased 1.1% when compared to the same period in the prior year. TOTAL: 27.5% $3,121,852 Measure G TOTAL:$ 2,493,465 18.3% 24.6% 18.3% COUNTY STATE LA QUINTA 3Q2021 ATTACHMENT 1 55 TOP NON-CONFIDENTIAL BUSINESS TYPES Q3 '21*La QuintaBusiness Type Change Change Change County HdL State 68.4%76.0%102.3% 177.7 Casual Dining 53.6%55.1%28.9% 108.0 Service Stations 19.7%20.5%28.6% 97.1 Electronics/Appliance Stores 13.5%8.1%7.0% 76.7 Quick-Service Restaurants 38.9%30.6%24.6% 66.5 Family Apparel -0.2%2.4%-6.6% 60.5 Grocery Stores 21.4%19.1%13.2% 58.5 Specialty Stores 11.0%13.6%15.3% 57.0 Home Furnishings 270.6%188.6%133.5% 50.0 Leisure/Entertainment 18.9%19.9%11.2% 33.1 Fast-Casual Restaurants *Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars $0 $2,000 $4,000 $6,000 $8,000 La Quinta Q3 18 Q3 21 Q3 19 Q3 20 County California SALES PER CAPITA* *ADJUSTED FORECONOMIC DATA SALES TAX UPDATECITY OF LA QUINTA3Q 2021 STATEWIDE RESULTS Local one cent sales and use tax receipts for sales occurring July through September were 18% higher than the same quarter one year ago after adjusting for accounting anomalies and back payments from previous quarters. These aberrations had been much greater than normal in the last two years as the Governor’s Executive Orders allowed businesses to defer some sales tax payments as a supportive measure during the pandemic. This program has now expired, and merchant remittances are more consistent, making cash receipts more reflective of underlying economic activity. The prior year comparison quarter was the start of the pandemic recovery, and the strong growth enjoyed since continued with the recent results. Surprisingly, one of the stronger sectors has been restaurants and hotels. Originally forecasted to take an extended amount of time to recover, statewide sales tax generated during the summer months exceeded amounts from pre-pandemic 2019. Even with the availability of indoor and outdoor dining, pent up demand resulted in long wait times to enjoy local culinary experiences. When combined with increasing restaurant tabs as the cost of food and staff wages surge, sales tax remittances are expected to continue growing. Additionally, while the industry awaits the return of foreign tourism in metropolitan areas, strong domestic travel has helped varied regions around the state especially Southern California and the Central Coast. Receipts from general consumer goods marked a steady recovery, led by apparel retailers, jewelry, electronic/appliance and specialty outlets. Discount department stores, especially those selling gas, helped exemplify the strength of brick-and-mortar merchants. Gains from the countywide use tax pools however, slowed to 2% compared to the high-water mark last year, which had been boosted by new tax collecting requirements imposed under AB 147 for online retailers. All things considered, when combined with positive economic trends, these are a welcome sign leading up to the holiday shopping period. Although car dealers had expressed concerns about inventory shortages due to supply chain disruptions and computer chip shortages earlier in the year, the sale of new and used vehicles posted solid gains regardless. Higher property values and good weather contributed to strong building materials and contractor returns. As commuting workers and travelers returned to the road with increased gas prices, fuel and service stations also experienced a dramatic recovery. Overall growth is expected to continue through the end of the 2021 calendar year. Possible headwinds into 2022 include: pent up demand for travel and experiences shifting spending away from taxable goods; higher prices for fuel, merchandise and services displacing more of consumer’s disposable income; and expected interest rate hikes resulting in more costly financing for automobiles, homes, and consumer loans. 56 POWER POINT FAC REGULAR QUARTERLY MEETING FEBRUARY 9, 2022 2/9/2022 1 Financial Advisory Commission Meeting February 9, 2022 1 2 2/9/2022 2 Financial Advisory Commission Meeting February 9, 2022 B1 – 2020/21 Year-End Budget Report Report Content Revenues Expenditures Carryovers Reserve Summary Exhibits 3 4 2/9/2022 3 General Fund Revenues Top 3 – sales, hotel, and property taxes Variances- Tax Revenue, Licenses & Permits, Miscellaneous/Transfers In General Fund Revenues 2020/21 Final Budget 2020/21 Actuals Variance Tax Revenue 44,878,000 51,515,856 6,637,856 Licenses & Permits 1,186,800 2,024,611 837,811 Intergovernmental 9,343,634 9,375,935 32,301 Charges for Services 575,000 962,368 387,368 Fines, Forfeitures & Abatements 264,000 779,006 515,006 Use of Money & Property 845,000 379,206 (465,794) Miscellaneous/Transfers In 593,100 1,233,835 640,735 Total Revenues 57,685,534 66,270,818 8,585,283 Non-Cash Adjustments Investments Fair Market Value Adjustment 666,023 666,023 RDA Loan Interest Earned, Extraordinary Gain (591,946) (591,946) 74,077 74,077 Total Adjusted Revenues 57,685,534 66,344,895 8,659,361 General Fund Expenses 100% of departments within budget Measure G reserves allocation $7,524,389 Total savings $2,861,263 General Fund 2020/21 Final Budget 2020/21 Actuals Co Variance Operational/CIP Expenses Multi-Year Capital Improvements 19,286,314 6,042,385 (13,243,929) Operational 47,789,239 41,553,757 *(6,235,482) Expenses Before Carryovers 67,075,553 47,596,141 (19,479,411) - Plus Carryovers to 2021/22 Multi-Year Capital Improvements 13,431,089 13,431,089 Operational 1,209,870 1,209,870 Adjusted Expenditures 67,075,553 62,237,101 (4,838,452) Plus Measure G Reserves 5,547,200 7,524,389 1,977,189 Total Expenditures 72,622,753 69,761,490 (2,861,263) *Reduced by non-cash transactions described in the 2020/21 Year-End Budget Report 5 6 2/9/2022 4 Carryovers to 2021/22 Total $13,431.089 For 22 Projects, detailed in Exhibit C Total $1,209,870 Total $203,000 Fund BalanceReserve/Fund Balance As of June 30, 2020 As of June 30, 2021 Change in Value Non-Spendable Prepaid Costs 90,657 37,182 (53,475) Prepaid Costs 14,065 25,246 11,181 Land Held for Resale 5,403,652 5,403,652 - Advances to Other Funds - - - Due from Other Governments 26,069,742 24,070,622 (1,999,120) Total Non-Spendable 31,487,459 29,499,520 (1,987,939) Restricted Pension Trust 10,249,738 11,381,922 1,132,184 Committed Operational Carryovers 1,778,800 1,209,870 (568,930) Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 10,000,000 10,000,000 - Economic Disaster 6,800,000 11,000,000 4,200,000 Capital Replacement Reserve 6,540,000 10,000,000 3,460,000 Total Committed 30,118,800 37,209,870 7,091,070 Assigned Public Safety Fire Services 10,491,654 11,423,931 932,277 Measure G Sales Tax 8,736,219 15,128,658 6,392,439 Capital Projects 13,155,144 13,431,089 275,945 Total Assigned 32,383,017 39,983,678 7,600,661 Unassigned 19,094,651 24,241,566 5,146,915 TOTAL FUND BALANCE 123,333,665 142,316,556 18,982,891 7 8 2/9/2022 5 Measure G Summary Measure G Revenue : $12.6 million Revenues since inception: $45.2 million  Discussion & Questions Fiscally healthy & well managed resources Reserves fully funded Economic instability due to pandemic 9 10 2/9/2022 6 The Financial Advisory Commission’s Next Regular Quarterly Meeting is on May 11, 2022 11 12