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2022 02 09 FAC Minutes Special MeetingFINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 4 FEBRUARY 9, 2022 REGULAR QUARTERLY MEETING FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, FEBRUARY 9, 2022 CALL TO ORDER A regular quarterly meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chair 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 Chair Batavick ABSENT: None STAFF PRESENT: Finance Director Martinez, Financial Services Analyst Hallick, Management Assistant Delgado. PLEDGE OF ALLEGIANCE Commissioner Mast led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS –None CONSENT CALENDAR ITEMS 1. APPROVE MEETING MINUTES DATED NOVEMBER 10, 2021 2. APPROVE 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 FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 FEBRUARY 9, 2022 REGULAR QUARTERLY MEETING 5. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED NOVEMBER 30, 2021 Motion – A motion was made and seconded by Commissioners Way/Campbell to approve Consent Calendar Item Nos. 3, 4, and 5. Motion passed unanimously. CONSENT CALENDAR ITEM NO. 2 Commissioner Mills requested the following revisions to the December 14, 2021 Special Meeting minutes: x Page 2, Business Session Item No. 1, Paragraph 2 shall read as follows: “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.” CONSENT CALENDAR ITEM NO. 1 Chair Batavick requested the following revisions to the November 10, 2021 Regular Meeting minutes: x Page 3, Commissioner Item No 7 – title and first sentence shall read as follows: “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.” Motion – A motion was made and seconded by Commissioners Batavick/Mills to approve Consent Calendar Item Nos. 1 and 2 as amended. Motion passed unanimously. The Commission and staff discussed the purpose for the non-general fund for Development Impact Fees-Transportation. BUSINESS SESSION 1. RECEIVE AND FILE FISCAL YEAR 2020/21 GENERAL FUND YEAR- END BUDGET REPORT (Report) FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 FEBRUARY 9, 2022 REGULAR QUARTERLY MEETING Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission and staff discussed general fund revenue for transient occupancy taxes (TOT) it’s funding sources; expenses for short-term vacation rental (STVR) program and its impact on TOT. Commissioner Campbell inquired on what is considered a STVR within the City. Commissioner Mills mentioned that definition on STVR can be found in past Council meetings found on the City’s archive Council meeting recordings on the website. Further discussion followed on general fund budgeted revenues and its variances compared to actual revenue and carryovers for fiscal year 2020/21. Commissioner Mills suggested the new Commissioners be provided with a copy of the Reserve Study done by the City, and Staff noted the study would be provided via email. The Commission and staff discussed the current formatting of the Report that is year-over-year differences versus possibly showing in Report year-to-date year-over-year showing prior year differences. Staff noted the Report format is under review. Motion – A motion was made and seconded by Commissioners Mills/Anderson to receive and file fiscal year 2020/21 general fund year-end budget report as submitted. Motion passed unanimously. STUDY SESSION – None DEPARTMENTAL REPORTS All reports are on file in the Finance Department. 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Commissioner Mast asked if the Accounting Manager position posted by the City was new. Finance Director Martinez said this was her position prior to being appointed as the Finance Director. Commissioner Anderson asked if the budget timeline for fiscal year 2021/22 would be affected due to the postponement of the City’s Annual Community Workshop. Ms. Martinez said that staff has met over the last two weeks with the capital improvement team and other departments internally to review and discuss current projects underway; are taking into consideration priority projects that may have been delayed due to the ongoing pandemic; and community priorities to make an effort to stay in line with the fiscal year 2021/22 budget timeline as done in prior years. FINANCIAL ADVISORY COMMISSION MINUTES Page 4 of 4 FEBRUARY 9, 2022 REGULAR QUARTERLY MEETING 2. THIRD QUARTER 2021 (JULY-SEPTEMBER) SALES TAX UPDATE FOR THE CITY OF LA QUINTA Commissioner Dorsey inquired on where the City stands in sales per capita in comparison to other local cities. Financial Services Analyst said the sales per capita for the City stands firmly in the middle in comparison to other cities in the Coachella Valley and noted that Palm Springs, Palm Desert, and Rancho Mirage were a bit higher than La Quinta, and Cathedral City, Indio and Coachella are below La Quinta. COMMISSIONERS’ ITEMS – None ADJOURNMENT There being no further business, it was moved by Commissioner Mills/Anderson to adjourn this meeting at 5:11 p.m. Motion passed unanimously. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California Digitally signed by Jessica Delgado DN: cn=Jessica Delgado, o=City of La Quinta, ou=Finance, email=jdelgado@laquintaca.gov, c=US Date: 2022.04.18 17:13:23 -07'00'