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2022 06 01 FAC Special MeetingFINANCIAL ADVISORY COMMISSION Page 1 of 1 JUNE 1, 2022 SPECIAL MEETING NOTICE AND CALL OF SPECIAL MEETING OF THE LA QUINTA FINANCIAL ADVISORY COMMISSION TO THE MEMBERS OF THE LA QUINTA FINANCIAL ADVISORY COMMISSION AND TO THE COMMISSION SECRETARY: NOTICE IS HEREBY GIVEN that a Special Meeting of the La Quinta Financial Advisory Commission is hereby called to be held on Wednesday, June 1, 2022, starting at 4:00 p.m.; at La Quinta City Hall located at 78495 Calle Tampico, La Quinta, CA 92253 for the following purpose: CONSENT CALENDAR 1. Approve Meeting Minutes Dated May 11, 2022 2. Receive and File Third Quarter Fiscal Year 2021/22 Treasury Reports for January, February, March 2022 3. Receive and File Revenue and Expenditure Report Dated March 31, 2022 BUSINESS SESSION 1. Approve the Fiscal Year 2022/23 Investment Policy 2. Discuss Fiscal Year 2022/23 Preliminary Proposed Budget and Approve Allocation of Measure G Sales Tax Revenue DEPARTMENTAL REPORTS 1. Finance Department Current and Future Initiatives Dated: May 26, 2022 /s/ George Batavick George Batavick, Chairperson Attest: Jessica Delgado, Management Assistant DECLARATION OF POSTING I, Jessica Delgado, Management Assistant, do hereby declare that the foregoing notice for the La Quinta Financial Advisory Commission Special Meeting of June 1, 2022, was posted on the outside entry to the Council Chamber at 78495 Calle Tampico, and on the bulletin boards at 51321 Avenida Bermudas and 78630 Highway 111 on May 26, 2022. Dated: May 26, 2022 Jessica Delgado, Management Assistant Digitally signed by Jessica Delgado DN: cn=Jessica Delgado, o=City of La Quinta, ou=Finance, email=jdelgado@laquintaca.gov, c=US Date: 2022.05.25 15:53:28 -07'00' Digitally signed by Jessica Delgado DN: cn=Jessica Delgado, o=City of La Quinta, ou=Finance, email=jdelgado@laquintaca.gov, c=US Date: 2022.05.25 15:53:42 -07'00' FINANCIAL ADVISORY COMMISSION AGENDA Page 1 of 4 JUNE 1, 2022 SPECIAL MEETING SPECIAL MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL COUNCIL CHAMBERS 78495 Calle Tampico, La Quinta WEDNESDAY, JUNE 1, 2022, AT 4:00 P.M. ****************************** SPECIAL NOTICE Teleconferencing and Telephonic Accessibility in Effect Pursuant to Executive Orders N-60-20 and N-08-21 executed by the Governor of California, and subsequently Assembly Bill 361 (AB 361, 2021), enacted in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.), members of the public, the Financial Advisory Commission, the City Manager, City Attorney, City Staff, and City Consultants may participate in this special meeting by teleconference. Members of the public wanting to listen to this meeting may do so by tuning-in live via https://laquinta.12milesout.com/video/live. Written public comments – can be provided in-person during the meeting or emailed to the Commission Secretary at JDelgado@LaQuintaCA.gov preferably by 12:00 p.m. on the day of the meeting, and will be distributed to the Commission, incorporated into the agenda packet and public record of the meeting, and will not be read during the meeting unless, upon 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. If emailed, the email “subject line” must clearly state “Written Comments” and list the following: Financial Advisory Commission agendas and staff reports are now available on the City’s web page: www.laquintaca.gov FINANCIAL ADVISORY COMMISSION AGENDA Page 2 of 4 JUNE 1, 2022 SPECIAL MEETING 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 and use the “raise your hand” feature when public comments are prompted by 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/them to speak on the item(s) requested. Please note – members of the public must unmute themselves when prompted upon being recognized by the Chair, in order to become audible to the Commission and the public. Only one person at a time may speak by teleconference and only after being recognized by the Chair. ZOOM LINK: https://us06web.zoom.us/j/89839984651 Meeting ID: 898 3998 4651 Or join by phone: (253) 215 – 8782 It would be appreciated that any email communications for public comments related to the items on the agenda, or for general public comment, are provided to the Finance Department Management Assistant at the email address listed above prior to the commencement of the meeting. If that is not possible, and to accommodate public comments on items that may be added to the agenda after its initial posting or items that are on the agenda, every effort will be made to attempt to review emails received by the Finance Department Management Assistant during the course of the meeting. The Financial Advisory Commission’s Chair will endeavor to take a brief pause before action is taken on any agenda item to allow the Finance Department Management Assistant to review emails and share any public comments received during the meeting. All emails received by the Finance Department Management Assistant, at the email address above, until the adjournment of the meeting, will be included within the public record relating to the meeting. ****************************** CALL TO ORDER ROLL CALL: Commissioners: Anderson, Dorsey, Mast, Mills, Way, and Chairperson Batavick VACANCY: One (1) PLEDGE OF ALLEGIANCE FINANCIAL ADVISORY COMMISSION AGENDA Page 3 of 4 JUNE 1, 2022 SPECIAL MEETING PUBLIC COMMENT At this time, members of the public may address the Financial Advisory Commission on any matter not listed on the agenda by providing written public comments either in-person or via email as indicated above; or provide verbal public comments either in-person or via teleconference by joining the meeting virtually at https://us06web.zoom.us/j/89839984651 and use the “raise your hand” feature when prompted by the Chair. Members of the public attending the meeting in-person are requested to complete a “Request to Speak” form and submit it to the Commission Secretary. Please limit your comments to three (3) minutes (or approximately 350 words). The Financial Advisory 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 § 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 MD\ 11, 2022 2. Receive and File Third Quarter Fiscal Year 2021/22 Treasury Reports for January, February, and March 2022 3. Receive and File Revenue and Expenditure Report Dated March 31, 2022 BUSINESS SESSION 1. Approve the Fiscal Year 2022/23 Investment Policy 2. Discuss Fiscal Year 2022/23 Preliminary Proposed Budget and Approve Allocation of Measure G Sales Tax Revenue STUDY SESSION – None DEPARTMENTAL REPORTS 1. Finance Department Current and Future Initiatives COMMISSIONERS’ ITEMS ADJOURNMENT FINANCIAL ADVISORY COMMISSION AGENDA Page 4 of 4 JUNE 1, 2022 SPECIAL MEETING The next regular quarterly meeting of the La Quinta Financial Advisory Commission will be held on August 10, 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 Special Meeting of the La Quinta Financial Advisory Commission was posted on the City’s website, near the entrance to the Council Chamber at 78495 Calle Tampico, and the bulletin boards at 78630 Highway 111, and 51321 Avenida Bermudas, on May 26, 2022. DATED: May 26, 2022 Jessica Delgado, Management Assistant City of La Quinta, California Public Notices The La Quinta City Hall Council Chambers is handicapped accessible. If special equipment is needed for the hearing impaired, please contact the Commission Secretary at (760) 777-7150, twenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the Commission, arrangements should be made in advance by contacting the Commission Secretary at (760) 777-7150. A one (1) week notice is required. If background material is to be presented to the Commission during a Commission meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the Commission Secretary for distribution. It is requested that this takes place prior to the beginning of the meeting. Any Writings or documents provided to a majority of the Commission regarding any item(s) on the agenda will be made available for public inspection at the Concierge desk at City Hall located at 78495 Calle Tampico, La Quinta, California, 92253, during normal business hours. Digitally signed by Jessica Delgado DN: cn=Jessica Delgado, o=City of La Quinta, ou=Finance, email=jdelgado@laquintaca.gov, c=US Date: 2022.05.25 15:53:53 -07'00' FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 4 MAY 11, 2022 REGULAR QUARTERLY MEETING FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, MAY 11, 2022 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, Mast, Mills, Way, and Chairperson Batavick ABSENT: Commissioner Dorsey VACANCY: One STAFF PRESENT: Finance Director Martinez, Financial Services Analyst Hallick, Account Technician Batuta, and Management Assistant Delgado. PLEDGE OF ALLEGIANCE Commissioner Mills led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA Financial Services Analyst said that the title for Consent Calendar Item No. 2 should read as follows: “Receive and File Revenue and Expenditure Report Dated February 28, 2022” The Commission concurred. CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 MAY 11, 2022 REGULAR QUARTERLY MEETING ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS –None CONSENT CALENDAR ITEMS 1.APPROVE MEETING MINUTES DATED APRIL 13, 2022 2.RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED FEBRUARY 28, 2022 Motion – A motion was made and seconded by Commissioners Way/Mills to approve the Consent Calendar, with the amended title for Consent Calendar Item No. 2 as noted above. Motion passed: ayes – 5, noes – 0, absent – 1 (Dorsey), vacancy – 1. BUSINESS SESSION 1.REVIEW AND APPROVE THE FISCAL YEAR 2022/23 MEETING DATES Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission discussed the process on how to request approval for being absent at a regular Commission meeting. Motion – A motion was made and seconded by Commissioners Way/Mast to approve the fiscal year 2022/23 Commission meeting dates as submitted. Motion passed: ayes – 5, noes – 0, absent – 1 (Dorsey), vacancy – 1. STUDY SESSION 1.DISCUSS THE FISCAL YEAR 2022/23 INVESTMENT POLICY (Policy) Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission and staff discussed state and government code for investments and how government funds are governed. Commissioner Mills mentioned the importance of reviewing the Policy as it is a component of one of the principal functions of the Commission. FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 MAY 11, 2022 REGULAR QUARTERLY MEETING Further discussion followed on state code guidelines and the timeline for approving and publishing the fiscal year 2022/23 Policy. 2.REVIEW AND DISCUSS 10-YEAR FINANCIAL PROJECTIONS FOR THE GENERAL FUND Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission and staff discussed current police services cost; revenue and expenditure projections; transient occupant tax (TOT) revenue; and growth projections percentages. Chair Batavick mentioned that input for the 10-year projections (Projections) starts at the City’s Annual Community Workshop (Workshop). Staff noted the Projections are generally provided to the Commission prior to the Workshop. The Commission and staff discussed having a future study session for Projections showing three different types of scenarios including worse case, best case, and a more likely comparison. Further discussion followed on police services cost, and what is included; and reimbursements for police services for special events. Chair Batavick said that he and Commissioner Way assisted with the Projections document included as Handout 1 of the staff report and mentioned on page 4, under Net Cash Position, it reflects the impact of the Redevelopment Agency Loan proceeds. 3.DISCUSS FISCAL YEAR 2022/23 PRELIMINARY PROPOSED BUDGET Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission and staff discussed inflation; expense increases; sales tax; and wage increases. DEPARTMENTAL REPORTS All reports are on file in the finance department. 1.FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES FINANCIAL ADVISORY COMMISSION MINUTES Page 4 of 4 MAY 11, 2022 REGULAR QUARTERLY MEETING Finance Director Martinez announced effective Monday, May 16, 2022, the City recruited a new Accounting Manager in the Finance Department who will be introduced at a future Commission meeting. Chair Batavick inquired on the review of the City’s pension liability. Staff said that this item would be placed on the agenda for a future Commission meeting. Further discussion followed on the process for how pension obligation discount rate is established. 2.FOURTH QUARTER 2021 (OCTOBER-DECEMBER) SALES TAX UPDATE FOR THE CITY OF LA QUINTA Financial Services Analyst Hallick said the City’s forecast Measure G at approximately 110-115% of sales tax, and the trend has been closer to 120% due to shifts in buying patterns. COMMISSIONERS’ ITEMS Chair Batavick mentioned his term expires in June 2022, and he has reapplied for another term. He also announced the current vacancy and encouraged those interested to apply to serve on the Commission. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Mills/Way to adjourn this meeting at 5:34 p.m. Motion passed: ayes – 5, noes – 0, absent – 1 (Dorsey), vacancy – 1. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: June 1, 2022 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE THIRD QUARTER FISCAL YEAR 2021/22 TREASURY REPORTS FOR JANUARY, FEBRUARY, AND MARCH 2022 RECOMMENDATION Receive and file the third quarter fiscal year 2021/22 Treasury Reports for January, February, and March 2022. BACKGROUND/ANALYSIS Commentary and Summary of Significant Activity The total book value of the portfolio increased $7.8 million, from $183.0 million at the end of December to $190.8 million at the end of March. The increase reflects operational activity throughout the quarter. The portfolio is within policy limits for investment types and total allocation by type (see chart below), and is also within policy guidelines for investment ratings. Investment Type January February March Max Allowed Bank Accounts 7.70% 6.36% 1.01% 100% Local Agency Investment Fund (LAIF) City 36.81% 36.19% 38.03% (1) Local Agency Investment Fund (LAIF) Housing 5.38% 5.29% 5.56% (1)(2) Money Market Pool Accounts-CAMP 0.43% 0.43% 0.45% 20% Federal Agency Coupons 17.40% 18.57% 19.51% 100% Treasury Coupons 8.55% 8.90% 10.73% 100% Certificates of Deposit (CD's)15.78% 15.88% 16.95% 30% Corporate Notes 1.19% 0.93% 0.97% 30% Money Market with Fiscal Agent 0.00% 0.89% 0.00% (2) CERBT- OPEB Trust 1.08% 1.06% 1.06% (3) PARS Pension Trust 5.69% 5.51% 5.73% (3) Total 100% 100% 100% (3) OPEB and pension trusts are fiduciary accounts and not subject to City Investment Policy (1) LAIF is subject to maximum dollar amount not a percentage of the portfolio (2) Funds held by fiscal agent and the LAIF Housing funds are governed by bond indentures and not subject to City Investment Policy Portfolio Allocations CONSENT CALENDAR ITEM NO. 2 The fiscal year annual effective rate of return is 0.75% as of March, which reflects a 2 basis point (bps) decrease since December. The overall portfolio rate is low due to a substantial balance in the Local Agency Investment Fund (LAIF) which is held for liquidity purposes. LAIF had seen a significant decline in rates driven by the short-term bond market and Fed Funds rate, but that is starting to recover. The LAIF rate was 1.78% in March of 2020, had dropped to 0.35% by March 2021 and was 0.36% in March 2022. However, this is an improvement over last quarter when LAIF was at 0.21% in December 2021. City staff is evaluating liquidity needs and continuing to move money from LAIF into investments that may provide more yield. Throughout the quarter, eight CDs and one corporate bond matured, and eight agency bonds, six treasuries, and twelve CDs were purchased. There were no sales or calls. Maturities and purchases are listed in detail in the attached reports. Other Notes Money market funds with the fiscal agent are bond proceeds subject to bond indentures, not the City’s investment policy. Successor Agency (SA) funds cannot be invested long-term; therefore, SA funds are only invested in LAIF. Looking Ahead The Treasurer follows a “buy and hold” Investment Policy, unless it is fiscally advantageous to actively trade outside of maturity dates. In the short term, the Treasurer will invest in CAMP and LAIF as needed. Longer term investments may include Government Sponsored Enterprise (agencies) securities, U.S. Treasuries, Corporate Notes, and Negotiable Certificates of Deposits. All investments recognize both immediate and long-term cash flow needs, and there is sufficient liquidity in the portfolio to meet expenditure requirements for the next six months. ALTERNATIVES - None Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Claudia Martinez, Finance Director/City Treasurer Attachment: 1. Treasurer’s Report for January 1, 2022 to March 31, 2022 Total Earnings Average Days to Maturity Effective Rate of Return YTD January 109,420$ 429 0.75% February 117,163$ 452 0.75% March 117,898$ 494 0.75% Quarter 2 344,480$ 458 0.75% ATTACHMENT 1 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: June 1, 2022 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH 31, 2022 RECOMMENDATION Receive and file revenue and expenditure report dated March 31, 2022. EXECUTIVE SUMMARY •The report summarizes the City’s year-to-date (YTD) revenues and period expenditures for March 2022 (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, including carryovers from the prior FY. Period Activity – represents actual revenues received and expenditures outlaid in the reporting month. Fiscal Activity – represents actual revenues received and expenditures outlaid YTD. Variance Favorable/(Unfavorable) - represents the dollar difference between YTD collections/expenditures and the current budgeted amount. Percent Used – represents the percentage activity as compared to budget YTD. CONSENT CALENDAR ITEM NO. 3 The revenue report includes revenues and transfers into funds from other funds (income items). Revenues are not received uniformly throughout the year, resulting in peaks and valleys. For example, large property tax payments are usually received in December and May. Similarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. Any timing imbalance of revenue receipts versus expenditures is funded from the City’s cash flow reserve. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are more likely to be consistent from month to month. However, large debt service payments or CIP expenditures can cause swings. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Claudia Martinez, Finance Director Attachment 1: Revenue and Expenditure Report for March 31, 2022 MTD YTD Percent of Budget YTD YTD Percent of Budget General Fund (GF)$5,010,140 $44,904,294 68.67% 33,707,642$ 58.43% All Funds $10,350,533 $74,252,490 49.81% 68,251,817$ 39.26% MTD YTD Percent of Budget YTD YTD Percent of Budget General Fund $8,622,674 $31,726,776 44.92% 26,709,649$ 40.30% Payroll (GF)$2,682,730 $9,675,373 84.36% 6,836,175$ 66.00% All Funds $20,480,880 $72,030,939 44.85% 78,366,092$ 41.98% March 2022 Expenditures Comparison to LY March 2022 Revenues Comparison to LY General Fund Non-General Fund Transient Occupancy (Hotel) Tax 1,791,106$ Lighting and Landscape Fund - Transfer In(1)1,285,000$ Measure G Sales Tax 1,192,335$ SilverRock Greens Fees 647,877$ Sales Tax 1,002,774$ Technology Support Internal Service Fund(2)438,675$ Building Permits 170,387$ Gas Tax Fund 329,229$ Document Transfer Tax 113,409$ Developer Impact Fees- Transportation 327,638$ General Fund Non-General Fund Sheriff Contract (November/December/January)2,415,310$ Land Acquisition -Low/Mod Housing 8,600,550$ Transfers Out 2,082,000$ Debt Service Payments- Successor Agency Bonds(4)1,783,153$ Liability Insurance & Claims(3)132,250$ SilverRock Maintenance 142,661$ Community Experiences 94,655$ Facility & Fleet Maintenance 106,425$ Park Equipment Maintenance(3)87,500$ Software Licenses 68,328$ (1)Transfer in from the General Fund for median improvement projects and general operations. (4)Interest and principal payments for redevelopment bonds, funded by dedicated Redevelopment Property Tax Trust Fund (RPTTF) revenue. Top Five Revenue/Income Sources for March Top Five Expenditures/Outlays for March (2)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. (3)These charges in the General Fund represent quarterly contributions to the Internal Service Funds. For Fiscal: 2021/22 Period Ending: 03/31/2022 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 44,904,2945,010,14058,804,210 65,392,532 -20,488,238 68.67% 201 - GAS TAX FUND 1,340,192329,2291,965,880 1,965,880 -625,688 68.17% 202 - LIBRARY & MUSEUM FUND 38,3891,5452,850,700 2,851,900 -2,813,511 1.35% 203 - PUBLIC SAFETY FUND (MEASURE G)1,23605,000 5,000 -3,764 24.73% 210 - FEDERAL ASSISTANCE FUND -1070151,000 151,000 -151,107 0.07% 212 - SLESA (COPS) FUND 112,5128,333101,000 101,000 11,512 111.40% 215 - LIGHTING & LANDSCAPING FUND 1,796,2861,285,0002,274,700 2,274,700 -478,414 78.97% 221 - AB 939 - CALRECYCLE FUND 41,3646,69470,000 70,000 -28,636 59.09% 223 - MEASURE A FUND 1,028,613233,3091,567,000 1,567,000 -538,387 65.64% 225 - INFRASTRUCTURE FUND 780100100 -22 78.21% 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)28,845012,000 12,000 16,845 240.37% 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)6,0186,0185,000 5,000 1,018 120.36% 230 - CASp FUND, AB 1379 14,6482,06719,200 19,200 -4,552 76.29% 231 - SUCCESSOR AGCY PA 1 RORF 7,181,309300 7,181,309 0.00% 235 - SO COAST AIR QUALITY FUND 26,18412,48352,800 52,800 -26,616 49.59% 237 - SUCCESSOR AGCY PA 1 ADMIN 741000 741 0.00% 241 - HOUSING AUTHORITY 1,484,214192,807871,400 1,241,400 242,814 119.56% 243 - RDA LOW-MOD HOUSING FUND 11,371035,000 35,000 -23,629 32.49% 247 - ECONOMIC DEVELOPMENT FUND 163,12470,20830,000 30,000 133,124 543.75% 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)24,4458,355201,000 201,000 -176,555 12.16% 250 - TRANSPORTATION DIF FUND 1,980,553327,638428,000 428,000 1,552,553 462.75% 251 - PARKS & REC DIF FUND 580,578153,972351,000 351,000 229,578 165.41% 252 - CIVIC CENTER DIF FUND 416,60698,679152,000 152,000 264,606 274.08% 253 - LIBRARY DEVELOPMENT DIF 109,38329,02450,000 50,000 59,383 218.77% 254 - COMMUNITY & CULTURAL CENTERS DIF 262,72669,89272,000 72,000 190,726 364.90% 255 - STREET FACILITY DIF FUND 33,2421,49500 33,242 0.00% 256 - PARK FACILITY DIF FUND 67000 67 0.00% 257 - FIRE PROTECTION DIF 136,77130,94366,000 66,000 70,771 207.23% 270 - ART IN PUBLIC PLACES FUND 181,30963,756130,000 130,000 51,309 139.47% 275 - LQ PUBLIC SAFETY OFFICER 2,2002,0002,600 2,600 -400 84.61% 299 - INTEREST ALLOCATION FUND 351,194152,47100 351,194 0.00% 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 -1,100 0.00% 401 - CAPITAL IMPROVEMENT PROGRAMS 4,761,29110,9809,894,806 62,391,518 -57,630,227 7.63% 405 - SA PA 1 CAPITAL IMPRV FUND 2,433000 2,433 0.00% 501 - FACILITY & FLEET REPLACEMENT 919,848307,6371,222,750 1,222,750 -302,902 75.23% 502 - INFORMATION TECHNOLOGY 1,342,894441,3751,786,700 1,786,700 -443,806 75.16% 503 - PARK EQUIP & FACILITY FUND 349,90587,500400,000 400,000 -50,095 87.48% 504 - INSURANCE FUND 757,653252,5001,010,800 1,010,800 -253,147 74.96% 601 - SILVERROCK RESORT 4,223,3121,306,7304,157,693 4,187,693 35,619 100.85% 602 - SILVERROCK GOLF RESERVE 64,11362,00067,000 67,000 -2,887 95.69% 760 - SUPPLEMENTAL PENSION PLAN 5,3255,0006,000 6,000 -675 88.75% 761 - CERBT OPEB TRUST -24,286-101,30180,000 80,000 -104,286 30.36% 762 - PARS PENSION TRUST -408,383-117,950700,000 700,000 -1,108,383 58.34% Report Total:10,350,533 74,252,49089,594,439 149,080,673 -74,828,183 49.81% ATTACHMENT 1 Accounts are subject to adjusting entries and audit. The City's Annual Comprehensive Financial Report, published annually, is the best resource for all final audited numbers. For Fiscal: 2021/22 Period Ending: 03/31/2022 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 31,726,7768,622,67455,162,726 70,624,237 38,897,461 44.92% 201 - GAS TAX FUND 1,146,508169,8362,007,500 2,984,683 1,838,175 38.41% 202 - LIBRARY & MUSEUM FUND 518,569121,6464,306,510 4,732,500 4,213,931 10.96% 203 - PUBLIC SAFETY FUND (MEASURE G)171,45200286,397 114,946 59.86% 210 - FEDERAL ASSISTANCE FUND 1,5301,530148,350 148,350 146,820 1.03% 212 - SLESA (COPS) FUND 19,87315,297100,000 100,000 80,127 19.87% 215 - LIGHTING & LANDSCAPING FUND 1,418,145175,1912,257,400 2,257,400 839,255 62.82% 220 - QUIMBY FUND 330,300001,180,635 850,335 27.98% 221 - AB 939 - CALRECYCLE FUND 19,9563,735150,000 150,000 130,044 13.30% 223 - MEASURE A FUND 322,36101,220,500 2,614,501 2,292,140 12.33% 225 - INFRASTRUCTURE FUND 00022,618 22,618 0.00% 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)9,750012,000 12,000 2,250 81.25% 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 15,285,7421,783,15300 -15,285,742 0.00% 235 - SO COAST AIR QUALITY FUND 14,62064942,500 42,500 27,880 34.40% 237 - SUCCESSOR AGCY PA 1 ADMIN 3,500000 -3,500 0.00% 241 - HOUSING AUTHORITY 821,642107,3221,542,200 1,542,200 720,558 53.28% 243 - RDA LOW-MOD HOUSING FUND 7000250,000 250,000 249,300 0.28% 244 - HOUSING GRANTS (Multiple)81,99568,3280160,000 78,005 51.25% 247 - ECONOMIC DEVELOPMENT FUND 16,763021,500 21,500 4,737 77.97% 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)8,631,0958,600,55020,000 20,000 -8,611,095 43,155.48% 250 - TRANSPORTATION DIF FUND 400,0000604,500 1,816,757 1,416,757 22.02% 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 87,52712,238127,000 742,700 655,173 11.78% 310 - LQ FINANCE AUTHORITY DEBT SERVICE 001,100 1,100 1,100 0.00% 401 - CAPITAL IMPROVEMENT PROGRAMS 4,201,619100,0439,894,806 60,540,692 56,339,072 6.94% 405 - SA PA 1 CAPITAL IMPRV FUND 997,179001,128,751 131,572 88.34% 501 - FACILITY & FLEET REPLACEMENT 500,49576,7411,222,750 1,319,714 819,219 37.92% 502 - INFORMATION TECHNOLOGY 964,81574,5941,786,700 2,256,627 1,291,812 42.75% 503 - PARK EQUIP & FACILITY FUND 115,2190255,000 255,000 139,781 45.18% 504 - INSURANCE FUND 927,17362,294936,800 936,800 9,627 98.97% 601 - SILVERROCK RESORT 3,206,277449,7424,161,262 4,191,262 984,985 76.50% 602 - SILVERROCK GOLF RESERVE 30,00030,000030,000 0 100.00% 760 - SUPPLEMENTAL PENSION PLAN 12,833012,850 12,850 17 99.87% 761 - CERBT OPEB TRUST 1,3224271,500 1,500 178 88.15% 762 - PARS PENSION TRUST 45,2014,89052,000 52,000 6,799 86.93% Report Total:20,480,880 72,030,93986,463,054 160,600,875 88,569,936 44.85% Accounts are subject to adjusting entries and audit. The City's Annual Comprehensive Financial Report, published annually, is the best resource for all final audited numbers. Fund #Name Notes 101 General Fund The primary fund of the City used to account for all revenue and expenditures of the City; a broad range of municipal activities are provided through this fund. 201 Gas Tax Fund Gasoline sales tax allocations received from the State which are restricted to street-related expenditures. 202 Library and Museum Fund Revenues from property taxes and related expenditures for library and museum services. 203 Public Safety Fund General Fund Measure G sales tax revenue set aside for public safety expenditures. 210 Federal Assistance Fund Community Development Block Grant (CDBG) received from the federal government and the expenditures of those resources. 212 SLESF (COPS) Fund Supplemental Law Enforcement Services Funds (SLESF) received from the State for law enforcement activities. Also known as Citizen's Option for Public Safety (COPS). 215 Lighting & Landscaping Fund Special assessments levied on real property for city-wide lighting and landscape maintenance/improvements and the expenditures of those resources. 220 Quimby Fund Developer fees received under the provisions of the Quimby Act for park development and improvements. 221 AB939 Fund/Cal Recycle Franchise fees collected from the city waste hauler that are used to reduce waste sent to landfills through recycling efforts. Assembly Bill (AB) 939. 223 Measure A Fund County sales tax allocations which are restricted to street-related expenditures. 224 TUMF Fund Developer-paid Transportation Uniform Mitigation Fees (TUMF) utilized for traffic projects in Riverside County. 225 Infrastructure Fund Developer fees for the acquisition, construction or improvement of the City’s infrastructure as defined by Resolution 226 Emergency Mgmt. Performance Grant (EMPG)Federal Emergency Management Agency (FEMA) grant for emergency preparedness. 227 State Homeland Security Programs (SHSP)Federal Emergency Management Agency (FEMA) grant for emergency preparedness. 230 CASP Fund, AB1379 / SB1186 Certified Access Specialist (CASp) program fees for ADA Accessibility Improvements; derived from Business License renewals. Assembly Bill (AB) 1379 and Senate Bill (SB) 1186. 231 Successor Agency PA 1 RORF Fund Successor Agency (SA) Project Area (PA) 1 Redevelopment Obligation Retirement Fund (RORF) for Redevelopment Property Tax Trust Fund (RPTTF) taxes received for debt service payments on recognized obligations of the former Redevelopment Agency (RDA). 235 SO Coast Air Quality Fund (AB2766, PM10)Contributions from the South Coast Air Quality Management District. Uses are limited to the reduction and control of airborne pollutants. Assembly Bill (AB) 2766. 237 Successor Agency PA 1 Admin Fund Successor Agency (SA) Project Area (PA) 1 for administration of the Recognized Obligation Payment Schedule (ROPS) associated with the former Redevelopment Agency (RDA). 241 Housing Authority Activities of the Housing Authority which is to promote and provide quality affordable housing. 243 RDA Low-Moderate Housing Fund Activities of the Housing Authority which is to promote and provide quality affordable housing. Accounts for RDA loan repayments (20% for Housing) and housing programs,. 244 Housing Grants Activites related Local Early Action Planning (LEAP) and SB2 grants for housing planning and development. 247 Economic Development Fund Proceeds from sale of City-owned land; transferred from General Fund for future economic development. 249 SA 2011 Low/Mod Bond Fund Successor Agency (SA) low/moderate housing fund; 2011 bonds refinanced in 2016. 250 Transportation DIF Fund Developer impact fees collected for specific public improvements - transportation related. 251 Parks & Rec. DIF Fund Developer impact fees collected for specific public improvements - parks and recreation. 252 Civic Center DIF Fund Developer impact fees collected for specific public improvements - Civic Center. 253 Library Development DIF Fund Developer impact fees collected for specific public improvements - library. 254 Community Center DIF Fund Developer impact fees collected for specific public improvements - community center. 255 Street Facility DIF Fund Developer impact fees collected for specific public improvements - streets. 256 Park Facility DIF Fund Developer impact fees collected for specific public improvements - parks. 257 Fire Protection DIF Fund Developer impact fees collected for specific public improvements - fire protection. 270 Art In Public Places Fund Developer fees collected in lieu of art placement; utilized for acquisition, installation and maintenance of public artworks. 275 LQ Public Safety Officer Fund Annual transfer in from General Fund; distributed to public safety officers disabled or killed in the line of duty. 299 Interest Allocation Fund Interest earned on investments. 310 LQ Finance Authority Debt Service Fund Accounted for the debt service the Financing Authority’s outstanding debt and any related reporting requirements. This bond was fully paid in October 2018. 401 Capital Improvement Program Fund Planning, design, and construction of various capital projects throughout the City. 405 SA PA 1 Capital Improvement Fund Successor Agency (SA) Project Area (PA) 1 bond proceeds restricted by the bond indenture covenants. Used for SilverRock infrastructure improvements. 501 Equipment Replacement Fund Internal Service Fund for vehicles, heavy equipment, and related facilities. 502 Information Technology Fund Internal Service Fund for computer hardware and software and phone systems. 503 Park Equipment & Facility Fund Internal Service Fund for park equipment and facilities. 504 Insurance Fund Internal Service Fund for city-wide insurance coverages. 601 SilverRock Resort Fund Enterprise Fund for activities of the city-owned golf course. 602 SilverRock Golf Reserve Fund Enterprise Fund for golf course reserves for capital improvements. 760 Supplemental Pension Plan (PARS Account)Supplemental pension savings plan for excess retiree benefits to general employees of the City. 761 Other Post Benefit Obligation Trust (OPEB)For retiree medical benefits and unfunded liabilities. 762 Pension Trust Benefit (PARS Account)For all pension-related benefits and unfunded liabilities. Fund Descriptions Page 3 of 3 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: June 1, 2022 STAFF REPORT AGENDA TITLE: APPROVE FISCAL YEAR 2022/23 INVESTMENT POLICY RECOMMENDATION Approve the Fiscal Year 2022/23 Investment Policy. EXECUTIVE SUMMARY • As part of their work plan, and as stated in Section XVIII of the City’s Investment Policy (the Policy), The Financial Advisory Commission (FAC) is asked to review the Policy annually. • Recommended revisions are reviewed by the City Manager and City Attorney, and then brought before the City Council for approval. • By City Code, City Council must adopt the policy by the end of June of each year. FISCAL IMPACT - None. BACKGROUND The City was awarded the Investment Policy Certificate of Excellence from the Association of Public Treasurers of the United States and Canada (APT US&C) in 2020/21, as well as certifications from the California Municipal Treasurers Association (CMTA) in 2018/19 and 2019/20. In addition, there were no new regulatory changes in FY 2021/22 that affected the City’s policy; therefore, staff recommends no significant changes to the current policy. The following minor edits, along with punctuation or format changes, are identified as red- lined in Attachment 1: • Section III Scope: Changed the reference to the City’s annual report to reflect the new name adopted by the Government Finance Officers Association: the Annual Comprehensive Financial Report (ACFR). • Section IX Authorized Financial Dealers: Changed the name and contact information for the state agency that oversees broker/dealers in California to the California Department of Financial Protection and Innovation. BUSINESS SESSION ITEM NO. 1 •Section IX Authorized Financial Dealers: Under bullet 2, added the National Credit Union Share Insurance Fund as an acceptable insurance, to match reference in Section X under Certificates of Deposit. Also added the full report name for “Call Reports” as well as a link to find them online. •Section X Permissible Deposits and Investments: Updated references to specific U.S. Government Sponsored Enterprises (GSEs, also known as Agencies). Also clarified the amount of the investment portfolio that can be invested in Corporate Notes to match the State Code. •Edits to Appendix D-Approved Financial Institutions to reflect name changes, to add the County Pooled Investment Fund, and to add the bank at which business is conducted for the Dune Palms Mobile Estates. •Edits to Appendix F-Glossary to match revisions in other sections, such as references to ACFR and GSEs. ALTERNATIVES The policy has been recognized by APT US&C and CMTA as being comprehensive as written, and therefore no alternatives are recommended at this time. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Claudia Martinez, Finance Director Attachment: 1. Draft Investment Policy for Fiscal Year 2022/23 (red-lined) 2. Draft Investment Policy for Fiscal Year 2022/23 (red-lines accepted) Exhibit A Fiscal Year 2021/20222022/2023 Table of Contents Section Topic Page Executive Summary 1 I General Purpose 2 II Investment Policy 2 III Scope 2 IV Objectives 3 V Maximum Maturities 5 VI Prudence 5 VII Authority 5 VIII Ethics and Conflicts of Interest 6 IX Authorized Financial Dealers and Institutions 6 X Permissible Deposits and Investments 7 XI Investment Pools 10 XII Payment and Custody 10 XIII Interest Earning Distribution Policy 11 XIV Internal Controls and Independent Auditors 11 XV Reporting Standards 12 XVI Review of Investment Portfolio 13 XVII Financial Advisory Commission – City of La Quinta 13 XIII Investment Policy Adoption 13 Appendices Topic Page A Municipal Code Ordinance 2.70 – Financial Advisory Commission 14 B Municipal Code Ordinance 3.08 – Investment of Moneys and Funds 16 C Segregation of Major Investment Responsibilities 18 D Listing of Approved Financial Institutions 19 E Investment Management Process and Risk 20 F Glossary 22 ATTACHEMENT 1 Page 1 of 27 CITY OF LA QUINTA Investment Policy Fiscal Year 2021/20222022/2023 EXECUTIVE SUMMARY The general purpose of this Investment Policy is to provide the rules and standards that must be followed in administering the City of La Quinta's (the “City”) deposits and investments. The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City, with the exception of bond proceeds and those noted in section III herein. It is the City's policy to deposit and invest public funds in a manner that shall provide safety of principal, liquidity to meet the City’s obligations and requirements that may be reasonably anticipated, and a risk-based market rate of return. Authority to manage the City's investment portfolio is derived from the City Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The City Manager, City Treasurer, and Ccity employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis, before the end of each fiscal year (June). Page 2 of 27 City of La Quinta Statement of Investment Policy July 1, 2021 through June 30, 2022 Adopted by the City Council on May 4, 2021June 21, 2022 I. GENERAL PURPOSE The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. II. INVESTMENT POLICY It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall conform to all State and local statutes governing the investment of public funds and set forth the permissible deposits and investments of the City's funds and the limitations thereon. III. SCOPE Except noted below, this Investment Policy applies to all deposits and investments of the City of La Quinta, the Successor Agency to the City of La Quinta Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities. These funds are reported in the City's Comprehensive Annual Comprehensive Financial Report (CAFRACFR) and include all funds within the following fund types:  General  Special Revenue  Capital Projects  Debt Service  Enterprise  Internal Service  Trust and Agency  Any new fund types and fund(s) that may be created. Financial assets and investment activity not subject to this policy The City's Investment Policy does not apply to the following:  Cash and Investments raised from Conduit Debt Financing;  Funds held in trust in the City's name in pension or other post-retirement benefit programs;  Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects; and  Short or long-term loans made to other entities by the City or Agency,;  Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency.; and  Investment of bond proceeds: . The City's Investment Policy shall not govern bond proceeds and bond reserve fund investments. California Code Section Page 3 of 27 5922(d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions. Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity, and to rebate excess earnings, if necessary. IV. OBJECTIVES The objectives of the City's investment activity, in order of priority and importance, are: A. Safety of Principal Safety of principal is the foremost objective of the City's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments. The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. Investment in any single security type or single financial institution shall be limited to the maximum percentages and/or dollar amounts as noted in Section X. 1. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by: • Limiting investments to investment grade securities as permitted in Section X; and • Diversifying Diversification- reducing concentration risk by limiting the total amount invested in the individual issuers of the securities in the investment portfolio so that potential losses due to issuer failure or individual securities downgrades may be minimized. 2. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by: Page 4 of 27 • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and • Investing operating funds primarily in shorter-term securities. 3. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X). A discussion of the City's investment process and risk is presented in Appendix E. B. Provide Liquidity The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. The City's policy is to generally hold securities and other investments to maturity. However, securities may be sold prior to maturity under certain circumstances as follow: • A security with declining credit quality can be sold early to minimize loss of principal. • Unanticipated liquidity needs of the portfolio require that one or more securities be sold. • When a sale/repurchase is fiscally advantageous based on market conditions and fits the needs of the portfolio C. Yield a Risk-Based Market Rate of Return The City's investment portfolio shall be structured with the objective of yielding a risk-based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. The portfolio's rates of return will be influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions. Performance Standards: As a basis for comparison only, the Treasurer's quarterly reports will display the rates of return on the three-month Bill, six-month Bill, the one and two-year U.S. Treasury Note, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. Formatted: Space After: 0 pt Page 5 of 27 The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. V. MAXIMUM MATURITIES It is the City's policy to generally hold securities and other investments until maturity. This buy-and-hold policy shall not prevent the sale of a security as listed in section IV.B The general buy-and-hold strategy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably anticipated cash needs. The City shall follow Title 5 of the California Government Code §53601 (the “State Code”) regarding maximum maturities, in that “no investment shall be made in any security…that at the time of the investment has a term remaining to maturity in excess of five years”. VI. PRUDENCE and FIDUCIARY DUTY The City shall follow the State Code §53600.3 regarding fiduciary duty and the Prudent Investor Standard as follows: Except as provided in subdivision (a) of §27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. VII. AUTHORITY Authority to manage the City's investment portfolio is derived from Chapter 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy. The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may Page 6 of 27 engage in an investment transaction except as provided under the terms of this Investment Policy (see Appendix C) and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. VIII. ETHICS AND CONFLICTS OF INTEREST The City Manager, City Treasurer, and City employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City will maintain compliance with the procedures set forth in the Conflicts of Interest and Acceptance of Gifts and other Gratuities section of the City of La Quinta Personnel Manual and the City’s Municipal Code Chapter 2.60 Conflicts of Interest. Any questionable activity or relationship shall be reported immediately; reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter. The City Manager, City Treasurer, and City employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the accountholder with the City are the same as those that are available to the public in general, or to all employees as a result of contract negotiations. IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes, as well as a list of approved broker/dealers. 1. Broker/Dealers who desire to become bidders for direct investment transactions must supply the City with the following: • Current audited financial statements; • Proof of Financial Industry Regulatory Authority (FINRA) Certification; • Proof of State of California registration; • Resume of financial broker; and • Completion of the City of La Quinta Broker/Dealer Questionnaire, which contains a certification of having read the City's Investment Policy. The City Treasurer or designee shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and/or individual(s) conducting investment related business. The City Treasurer or designee will may also contact the following agencies during the verification process: • Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-800- 289-9999). Formatted: Indent: Left: 0.75" Page 7 of 27 • State of California Department of Corporations Financial Protection and Innovation (1-866-275-26771-916-445-3062). A professional investment manager or management firm, if engaged by the City pursuant to Section X of this policy, may utilize their own list of approved broker/dealers on the condition that any such list is provided to the City upon request. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. An annual review of the financial condition and registrations of approved broker/dealers will be conducted by the City Treasurer or designee. Current audited financial statements and/or System and Organizational Controls (SOC- 1 and/or SOC-2) internal control reports may be maintained on file for each financial institution and broker/dealer with which the City conducts business. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix D, "Listing of Approved Financial Institutions"): • Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF). • Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report (Consolidated Reports of Condition and Income) if requested. These reports can also be found at https://cdr.ffiec.gov/public/ManageFacsimiles.aspx The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. X. PERMISSIBLE DEPOSITS AND INVESTMENTS It is the City’s policy to follow Title 5 of the California Government Code (the “State Code”) in regard to allowable securities, and to be sufficiently diversified with regard to security type and issuer. Permissible deposits and investments, as allowed by Chapter 4, Part 1, Division 2, Title 5 (hereinafter cited by §), include, but are not limited to, the following list. The State Code can be directly referenced at https://leginfo.legislature.ca.gov/ Page 8 of 27 Checking, Savings, and Sweep Accounts - The City will only maintain checking and savings, accounts with state or national banks, savings associations, federal associations, and/or credit unions in accordance with §53635.2. • Collateralization: The amount of the City's deposits or investments not insured by the FDIC shall be collateralized by securities in accordance with §53652. The Treasurer may invest in an interest-bearing active deposit account as approved in §53632. The deposit account must be collateralized with securities that are in accordance with §53632.5. In addition, the market value of the collateralized securities must be maintained in accordance with §53652 and be held by a custodian in accordance with the requirements of §53656. The proportion of the City's share of the deposit account shall be determined in accordance with §53658. Certificates of Deposit (Negotiable and Non-negotiable) – As authorized in §53601(i), the City may invest in Non- Negotiable and Negotiable Certificates of Deposits (CD) up to 30% of the overall portfolio. In no instance shall a CD or combined CD’s with a single issuer exceed the FDIC or NCUSIF insurance limit of $250,000. U.S. Treasury Bills, Notes, and Bonds – As authorized in §53601(b), the City may invest in U.S. Treasury bills, notes, and bonds directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy provides for investments in U.S. Treasury issues of 100% of the portfolio. U.S. Government Agency Securities and Federal Government Securities – As authorized in §53601(f), the City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or GSE's). These securities may not be backed by the full faith and credit of the U.S. Government (with the exception of Government National Mortgage Association (GNMA) securities). Examples of GSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal Home Loan Bank (FHLB), Federal Farm Credit Banks Funding Corporation (FFCB), Federal Land Bank (FLB), Federal Intermediate Credit Bank (FICB)Federal Agricultural Mortgage Corporation (FAMC), Tennessee Valley Authority (TVA), and GNMA securities. The City's Investment Policy allows investment only in securities of GNMA, FNMA, FHLMC, FHLB, and FFCB. For Fiscal Year 2021-222022-23, the maximum face amount per issuer is $20 million and the maximum face amount per purchase is $10 million. Prime Commercial Paper – As authorized in §53601(h), a portion of the City's portfolio may be invested in commercial paper of the highest rating as provided for by a nationally recognized statistical rating organization (NRSRO) such as Moody’s, Fitch, or Standard & Poor’s (S&P). There are a number of other qualifications regarding investments in commercial paper based on the financial Page 9 of 27 strength and size of the corporation and the size of the investment. The City limits on prime commercial paper are as defined in the State Code. Local Agency Investment Fund (LAIF) – As authorized in §16429.1 and by LAIF policies, local government agencies are each authorized to invest up to the deposit limit as designated by the California State Treasurer. The City Treasurer may not invest more than the maximum amount per account as allowed by LAIF. Money Market Mutual Funds – As authorized in §53601(l), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). Corporate Notes – As authorized in §53601(k), local agencies may invest in corporate notes. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations: • Maximum 30% of the portfolio; • Maturities shall not exceed five years from date of purchase; • Eligible notes shall be regularly quoted and traded in the marketplace; • Eligible notes shall be in a rating category of "AA" or better by an NRSRO; • The maximum aggregate investment in each issuer shall not exceed $5 million (PAR value), or no more than 10% of the total investment assets in the commercial paper and the medium-term notes of any single issuer. Professionally Managed Account(s) – The City Treasurer may place up to 50% of the portfolio with a professional portfolio management/investment management firm (firm) The firm will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a public request for proposal (RFP). The firm shall have: • An established professional reputation for asset or investment management; • Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; • Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; Page 10 of 27 • Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and • Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940 Before engagement by the City and except as may be specifically waived or revised, the firm shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions: • The firm may be granted the discretion to purchase and sell investment securities in accordance with this Investment Policy; • The firm is not required to adhere to a buy-and-hold policy; and • The firm does not need City Manager or City Treasurer approval to make permissible investments. Local Agency Bonds and California Local Agency Obligations – As authorized in §53601(a) and §53601(e), the City may invest in California local agency obligations. §53601(a) pertains to investing in bonds issued by a local agency, or by the department, board, agency or authority of the local agency. §53601(e) pertains to investing in bonds and other defined indebtedness of any local agency, or department, board, agency or authority of the local agency within the State of California. The Agency obligations must be invested in the long-term rating category of A or better by an NRSRO. In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers. XI. INVESTMENT POOLS There are three (3) types of investment pools: • State-run pools (e.g., LAIF); • Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools, and Joint Powers Authorities such as the California Asset Management Program (CAMP)); and • Pools that are operated for profit by third parties (e.g. money market funds). The City's Investment Policy permits investment in pools and money market funds as authorized by State Code §16429.1, §53601(l) and §53601(p). XII. PAYMENT AND CUSTODY The City shall engage qualified third-party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds received from the City for a Page 11 of 27 purchase, to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. Even though ownership is evidenced in book-entry form rather than by actual certificates, this procedure is commonly referred to as the delivery versus payment (DVP) method for the transfer of securities. XIII. INTEREST EARNING DISTRIBUTION POLICY Interest earnings are generated from pooled investments and specific investments. The following provisions apply to the calculation and distribution of interest earnings. 1. Pooled Investments – It is the general policy of the City to pool all available operating cash of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings as a payment to each fund of an amount based on the month-end cash balance included in the common portfolio for the earning period. 2. Specific Investments – Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV. INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: • Safeguard assets; • The orderly and efficient conduct of its business, including adherence to management policies; • Prevention or detection of errors and fraud; • The accuracy and completeness of accounting records; and • Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: • Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. • Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. Page 12 of 27 • Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. • Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. • Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities (aAppendicesx C). • Written confirmation of telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax or email if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow- up. • Development of a wire transfer agreement with the City's bank and third-party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The system of internal controls developed by the City shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains, to cash and investment activities, and the City Treasurer's response shall be provided to the City's Financial Advisory Commission for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Financial Advisory Commission and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix C, "Segregation of Major Investment Responsibilities." XV. REPORTING STANDARDS The City Treasurer shall submit a quarterly Treasurer’s Report to the City Council and the Financial Advisory Commission that includes all cash and investments under the authority of the Treasurer. In addition, the City Treasurer or designee shall ensure all investment transactions are reported on a monthly basis as they occur throughout Page 13 of 27 the quarter. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following: • A certification by the City Treasurer; • A listing of purchases and sales/maturities of investments; • Cash and Investments categorized by authorized investments; LAIF will also be provided quarterly and show yield and maturity; • Comparison of month end actual holdings to Investment Policy limitations; • A two-year list of historical interest rates. XVI. REVIEW OF INVESTMENT PORTFOLIO The securities held by the City must be in compliance with this Policy at the time of purchase. Due to market conditions, some securities may no longer comply subsequent to the date of purchase, therefore a quarterly review of the portfolio will be conducted to identify any securities which may have fallen out of compliance. Any major incidences of noncompliance identified during such review will be reported to the Financial Advisory Commission for confirmation of staff course of action. XVII. FINANCIAL ADVISORY COMMISSION - CITY OF LA QUINTA The Financial Advisory Commission (FAC) is composed of seven members from the public that are appointed by the City Council. The FAC’s membership, qualifications, and powers and duties are prescribed in Chapter 2.70 of the La Quinta Municipal Code and included in this policy as Appendix A. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each commissioner will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the FAC. All commissioners shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest. XVIII. INVESTMENT POLICY ADOPTION The City's Investment Policy will be reviewed annually by the City's Financial Advisory Commission and the City Treasurer. The Financial Advisory Commission will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Financial Advisory Commission, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. The Investment Policy shall be adopted by resolution of the City Council annually before the end of June of each year. Page 14 of 27 Page 15 of 27 City of La Quinta Municipal Code Chapter 2.70 FINANCIAL ADVISORY COMMISSION 2.70.010 General rules regarding the financial advisory commission. Except as set out below, see Chapter 2.06 for general provisions. 2.70.020 Number of members. The financial advisory commission ("FAC") shall initially consist of seven members appointed by, and serving at the will of, the city council. The city council may increase or decrease the number of members from time to time but in no event shall the membership exceed nine members or be less than five members. 2.70.030 Qualifications of members. A. In addition to the qualification requirements set forth in Section 2.06.040 of this code, a minimum of three of the members shall be finance professionals and shall have a verifiable background in finance and/or securities, preferably with knowledge and/or experience in markets, financial controls and accounting for securities. B. For those applying for the professional position, background information will be requested, and potential candidates must agree to a background check and verification by the city manager or designee. 2.70.040 Powers and duties. A. The principal functions of the FAC are: 1. Review at least annually the city's investment policy and recommend appropriate changes; 2. Review at least quarterly the treasury report and note compliance with the investment policy and adequacy of cash and investments for anticipated obligations; 3. Receive and consider other reports provided by the city treasurer; 4. Meet with the independent auditor after completion of the annual audit of the city's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities; 5. Review at least annually the revenue derived from the one percent (1%) transactions and use tax instituted by voters in November 2016 to ensure these funds are used to provide services, programs and capital projects in the city of La Quinta. APPENDIX A Page 16 of 27 6. Serve as a resource for the city treasurer on matters such as proposed investments, internal controls, use of or change of financial institutions, custodians, brokers and dealers. B. The FAC will report to the city council after each meeting either in person or through correspondence at a regular city council meeting. (Ord. 556 § 1, 2017) 2.70.050 References to the Investment Advisory Board. If any other chapter(s) or section(s) in this code refers to the Investment Advisory Board, that chapter(s) or section(s) shall be deemed to refer to the Financial Advisory Commission established by the ordinance amending chapter 2.70 of this code. Page 17 of 27 City of La Quinta Municipal Code Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by Sections 53607 and 53608 of the California Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer, which, for purposes of this chapter, is defined in Section 2.12.010 of this code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under the city council adopted city investment policy and any provision of state law relating to the investing of general city funds, including, but not limited to, Sections 53601 and 53635 of the California Government Code, as said sections now read or may hereafter be amended, from moneys in the city treasurer's custody which are not required for the immediate necessities of the city and as he or she may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord.2 § 1 1982) 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be cancelled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 3.08.050 Reports. The city treasurer shall make a quarterly report to the city council of all investments made pursuant to the authority delegated in this chapter and as permitted by Section 53646(b)(1) of the Government Code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) APPENDIX B Page 18 of 27 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the city council adopted investment policy and terms of any state law, including, but not limited to, Section 53608 of the Government Code, as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 36524 of the Government Code and any other applicable provisions of law. (Ord. 2 § 1, 1982) Page 19 of 27 Function Responsible Parties Develop and recommend modifications to the City's formal Investment Policy City Treasurer, Financial Services Analyst, and Financial Advisory Commission Review City's Investment Policy and recommend City Council action City Manager and City Attorney Adopt formal Investment Policy City Council Implement formal Investment Policy City Treasurer Review financial institutions and select investments City Treasurer or Financial Servies Analyst Acknowledge investment selections City Manager or his/her designee Execute investment transactions City Manager, City Treasurer, or Financial Services Analyst Confirm wires Accounting Manager, Accountant, or Management Assistant Record investment transactions in City's accounting records Accounting Manager or Accountant Investment cerification- match broker confirmation to City's investment records City Treasurer or Financial Services Analyst Reconcile investment records to accounting records and bank statements Financial Services Analyst Reconcile investment records to treasurer's report of investments City Treasurer, Accounting Manager, or Financial Services Analyst Security of investments at City Accounting Manager or Management Assistant Security of investments outside of City Third Party Custodian Review internal control procedures External Auditor SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES APPENDIX C Page 20 of 27 Banking Services -Wells Fargo Bank, Government Services, Los Angeles, CA (Banking Services) -Bank of the West, San Francisco, CA (Banking Services) Custodian Services -The Bank of New York Mellon/Pershing LLC -Stifel Deferred Compensation -International City/County Management Association (ICCMA) Retirement Corporation Broker/Dealer Services -Stifel, Nicholaus, & Company, Inc. -Higgins Capital Management, Inc. -Great Pacific Securities Government/Joint Powers Authority Pools -State of California Local Agency Investment Fund (LAIF) -California Asset Management Program (CAMP) Trustee Services -US Bank (1) Other Post Employment Benefits (OPEB) Trust -California Employers' Retirement Benefits Trust (CERBT)/CalPERS Pension Trust - Administration -Public Agency Retirement Services (PARS) Listing of Approved Financial Institutions (1) US Bank is the fiscal agent for all of the following bonds: 2013 (refunded in 2021), 2014 (refunded in 2021), 2016, and 2021 Successor Agency to the La Quinta Redevelopment Agency (RDA) Bonds. US Bank is also the trustee and asset custodian for the PARS pension trust. APPENDIX D Formatted: Left Page 21 of 27 Page 22 of 27 INVESTMENT MANAGEMENT PROCESS AND RISK Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee each person, treasurer, or governing body authorized to make investment decisions on behalf of local agencies. Trustees are subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors). Risk is inherent throughout the investment process. There is investment risk associated with any investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity. Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer-term investments Another element of risk is liquidity risk. Instruments with call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities. Default risk represents the possibility that the borrower may be unable to repay the obligation as scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as APPENDIX E Page 23 of 27 bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum. The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for another or selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management. The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust. Source: Chapter II. Fund Management from the Local Agency Investment Guidelines Issued by California Debt and Investment Advisory Commission Page 24 of 27 GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. COMPREHENSIVE ANNUAL COMPREHENSIVE FINANCIAL REPORT (CACFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large- denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. APPENDIX F Page 25 of 27 CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued at discount and redeemed at maturity for full face value DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIESGOVERNMENT SPONSORED ENTERPRISES (GSEs): Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exportersPrivately held corporations with public purposes created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy. Securities issues by GSEs carry the implicit backing of the U.S. Government, but they are not direct obligations of the U.S. Government.. Typically referred to as ‘Agency Bonds’ or ‘Agencies’. FNMAs or Fannie Mae (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and Formatted: Font: Bold Page 26 of 27 second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage-lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi- annual coupons. Interest is calculated on a 360-day, 30-day month basis. FFCBs (Federal Farm Credit Bank) – Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. FICBs (Federal Intermediate Credit Bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine-month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis. FHLMCs or Freddie Mac (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly. FAMCs or Farmer Mac (Federal Agricultural Mortgage Corporation) - FAMC increases the availability and affordability of credit for the benefit of American agriculture and rural communities. They are the nation’s premier secondary market for agricultural credit, providing financial solutions to a broad spectrum of the agricultural community, including agricultural lenders, agribusinesses, and other institutions that can benefit from access to flexible, low-cost financing and risk management tools. FAMC is regulated by the Farm Credit Administration. Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), and Tennessee Valley Authority notes (TVA's). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit per entity. Formatted: Font: Bold Formatted: Font: Bold Page 27 of 27 FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open- market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and about 3,000 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass- throughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund): - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period, the minimum transaction is $5,000 and the City follows the state guidance for maximum total balance. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. Commented [RH1]: Listed under GSEs above Page 28 of 27 MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. NRSRO (NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION): A credit rating agency recognized by the Securities and Exchange Commission (SEC). Examples include Fitch Ratings, Inc., Moody’s Investor’s Services, Inc., and S&P Global Ratings, among others. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker- dealers, banks and a few unregulated firms. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO) and REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP Page 29 of 27 extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. SSAE 16: The Statement on Standards for Attestation Engagements No. 16 (SSAE 16) is a set of auditing standards and guidance on using the standards, published by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for redefining and updating how service companies report on compliance controls. The Service Organizational Control report (SOC-1) contains internal controls over financial reporting and is used by auditors and office controllers. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A non-interest- bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, Page 30 of 27 compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. ,19(670(1732/,&< ATTACHMENT 2 Exhibit A Fiscal Year 2022/2023 Table of Contents Section Topic Page Executive Summary 1 I General Purpose 2 II Investment Policy 2 III Scope 2 IV Objectives 3 V Maximum Maturities 5 VI Prudence 5 VII Authority 5 VIII Ethics and Conflicts of Interest 6 IX Authorized Financial Dealers and Institutions 6 X Permissible Deposits and Investments 7 XI Investment Pools 10 XII Payment and Custody 10 XIII Interest Earning Distribution Policy 11 XIV Internal Controls and Independent Auditors 11 XV Reporting Standards 12 XVI Review of Investment Portfolio 13 XVII Financial Advisory Commission – City of La Quinta 13 XIII Investment Policy Adoption 13 Appendices Topic Page A Municipal Code Ordinance 2.70 – Financial Advisory Commission 14 B Municipal Code Ordinance 3.08 – Investment of Moneys and Funds 16 C Segregation of Major Investment Responsibilities 18 D Listing of Approved Financial Institutions 19 E Investment Management Process and Risk 20 F Glossary 22 Page 1 of 27 CITY OF LA QUINTA Investment Policy Fiscal Year 2022/2023 EXECUTIVE SUMMARY The general purpose of this Investment Policy is to provide the rules and standards that must be followed in administering the City of La Quinta's (the “City”) deposits and investments. The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City, with the exception of bond proceeds and those noted in section III herein. It is the City's policy to deposit and invest public funds in a manner that shall provide safety of principal, liquidity to meet the City’s obligations and requirements that may be reasonably anticipated, and a risk-based market rate of return. Authority to manage the City's investment portfolio is derived from the City Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The City Manager, City Treasurer, and City employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis, before the end of each fiscal year (June). Page 2 of 27 City of La Quinta Statement of Investment Policy July 1, 2021 through June 30, 2022 Adopted by the City Council on June 21, 2022 I. GENERAL PURPOSE The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. II. INVESTMENT POLICY It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall conform to all State and local statutes governing the investment of public funds and set forth the permissible deposits and investments of the City's funds and the limitations thereon. III. SCOPE Except noted below, this Investment Policy applies to all deposits and investments of the City of La Quinta, the Successor Agency to the City of La Quinta Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities. These funds are reported in the City's Annual Comprehensive Financial Report (ACFR) and include all funds within the following fund types: ➢ General ➢ Special Revenue ➢ Capital Projects ➢ Debt Service ➢ Enterprise ➢ Internal Service ➢ Trust and Agency ➢ Any new fund types and fund(s) that may be created. Financial assets and investment activity not subject to this policy The City's Investment Policy does not apply to the following: ➢ Cash and Investments raised from Conduit Debt Financing; ➢ Funds held in trust in the City's name in pension or other post-retirement benefit programs; ➢ Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects; ➢ Short or long-term loans made to other entities by the City or Agency; ➢ Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency; and ➢ Investment of bond proceeds. The City's Investment Policy shall not govern bond proceeds and bond reserve fund investments. California Code Section Page 3 of 27 5922(d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions. Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity, and to rebate excess earnings, if necessary. IV. OBJECTIVES The objectives of the City's investment activity, in order of priority and importance, are: A. Safety of Principal Safety of principal is the foremost objective of the City's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments. The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. Investment in any single security type or single financial institution shall be limited to the maximum percentages and/or dollar amounts as noted in Section X. 1. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by: • Limiting investments to investment grade securities as permitted in Section X; and • Diversification- reducing concentration risk by limiting the total amount invested in individual issuers of securities in the investment portfolio so that potential losses due to issuer failure or securities downgrades may be minimized. 2. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by: Page 4 of 27 • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and • Investing operating funds primarily in shorter-term securities. 3. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X). A discussion of the City's investment process and risk is presented in Appendix E. B. Provide Liquidity The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. The City's policy is to generally hold securities and other investments to maturity. However, securities may be sold prior to maturity under certain circumstances as follow: • A security with declining credit quality can be sold early to minimize loss of principal. • Unanticipated liquidity needs of the portfolio require that one or more securities be sold. • When a sale/repurchase is fiscally advantageous based on market conditions and fits the needs of the portfolio C. Yield a Risk-Based Market Rate of Return The City's investment portfolio shall be structured with the objective of yielding a risk-based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. The portfolio's rates of return will be influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions. Performance Standards: As a basis for comparison only, the Treasurer's quarterly reports will display the rates of return on the three-month Bill, six-month Bill, the one and two-year U.S. Treasury Note, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. Page 5 of 27 The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. V. MAXIMUM MATURITIES It is the City's policy to generally hold securities and other investments until maturity. This buy-and-hold policy shall not prevent the sale of a security as listed in section IV.B The general buy-and-hold strategy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably anticipated cash needs. The City shall follow Title 5 of the California Government Code §53601 (the “State Code”) regarding maximum maturities, in that “no investment shall be made in any security…that at the time of the investment has a term remaining to maturity in excess of five years”. VI. PRUDENCE and FIDUCIARY DUTY The City shall follow the State Code §53600.3 regarding fiduciary duty and the Prudent Investor Standard as follows: Except as provided in subdivision (a) of §27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. VII. AUTHORITY Authority to manage the City's investment portfolio is derived from Chapter 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy. The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may Page 6 of 27 engage in an investment transaction except as provided under the terms of this Investment Policy (see Appendix C) and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. VIII. ETHICS AND CONFLICTS OF INTEREST The City Manager, City Treasurer, and City employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City will maintain compliance with the procedures set forth in the Conflicts of Interest and Acceptance of Gifts and other Gratuities section of the City of La Quinta Personnel Manual and the City’s Municipal Code Chapter 2.60 Conflicts of Interest. Any questionable activity or relationship shall be reported immediately; reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter. The City Manager, City Treasurer, and City employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the accountholder with the City are the same as those that are available to the public in general, or to all employees as a result of contract negotiations. IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes, as well as a list of approved broker/dealers. 1. Broker/Dealers who desire to become bidders for direct investment transactions must supply the City with the following: • Current audited financial statements; • Proof of Financial Industry Regulatory Authority (FINRA) Certification; • Proof of State of California registration; • Resume of financial broker; and • Completion of the City of La Quinta Broker/Dealer Questionnaire, which contains a certification of having read the City's Investment Policy. The City Treasurer or designee shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and/or individual(s) conducting investment related business. The City Treasurer or designee may also contact the following agencies during the verification process: • Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-800-289-9999). Page 7 of 27 • State of California Department of Financial Protection and Innovation (1- 866-275-2677). A professional investment manager or management firm, if engaged by the City pursuant to Section X of this policy, may utilize their own list of approved broker/dealers on the condition that any such list is provided to the City upon request. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. An annual review of the financial condition and registrations of approved broker/dealers will be conducted by the City Treasurer or designee. Current audited financial statements and/or System and Organizational Controls (SOC- 1 and/or SOC-2) internal control reports may be maintained on file for each financial institution and broker/dealer with which the City conducts business. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix D, "Listing of Approved Financial Institutions"): • Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF). • Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report (Consolidated Reports of Condition and Income) if requested. These reports can also be found at: https://cdr.ffiec.gov/public/ManageFacsimiles.aspx The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. X. PERMISSIBLE DEPOSITS AND INVESTMENTS It is the City’s policy to follow Title 5 of the California Government Code (the “State Code”) in regard to allowable securities, and to be sufficiently diversified with regard to security type and issuer. Permissible deposits and investments, as allowed by Chapter 4, Part 1, Division 2, Title 5 (hereinafter cited by §), include, but are not limited to, the following list. The State Code can be directly referenced at https://leginfo.legislature.ca.gov/ Page 8 of 27 Checking, Savings, and Sweep Accounts - The City will only maintain checking and savings accounts with state or national banks, savings associations, federal associations, and/or credit unions in accordance with §53635.2. • Collateralization: The amount of the City's deposits or investments not insured by the FDIC shall be collateralized by securities in accordance with §53652. The Treasurer may invest in an interest-bearing active deposit account as approved in §53632. The deposit account must be collateralized with securities that are in accordance with §53632.5. In addition, the market value of the collateralized securities must be maintained in accordance with §53652 and be held by a custodian in accordance with the requirements of §53656. The proportion of the City's share of the deposit account shall be determined in accordance with §53658. Certificates of Deposit (Negotiable and Non-negotiable) – As authorized in §53601(i), the City may invest in Non-Negotiable and Negotiable Certificates of Deposits (CD) up to 30% of the overall portfolio. In no instance shall a CD or combined CDs with a single issuer exceed the FDIC or NCUSIF insurance limit of $250,000. U.S. Treasury Bills, Notes, and Bonds – As authorized in §53601(b), the City may invest in U.S. Treasury bills, notes, and bonds directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy provides for investments in U.S. Treasury issues of 100% of the portfolio. U.S. Government Agency Securities and Federal Government Securities – As authorized in §53601(f), the City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or GSE's). These securities may not be backed by the full faith and credit of the U.S. Government (with the exception of Government National Mortgage Association (GNMA) securities). Examples of GSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal Home Loan Bank (FHLB), Federal Farm Credit Banks Funding Corporation (FFCB), Federal Agricultural Mortgage Corporation (FAMC), Tennessee Valley Authority (TVA), and GNMA securities. The City's Investment Policy allows investment only in securities of GNMA, FNMA, FHLMC, FHLB, and FFCB. For Fiscal Year 2022-23, the maximum face amount per issuer is $20 million and the maximum face amount per purchase is $10 million. Prime Commercial Paper – As authorized in §53601(h), a portion of the City's portfolio may be invested in commercial paper of the highest rating as provided for by a nationally recognized statistical rating organization (NRSRO) such as Moody’s, Fitch, or Standard & Poor’s (S&P). There are a number of other qualifications regarding investments in commercial paper based on the financial strength and size of the corporation and the size of the investment. The City limits on prime commercial paper are as defined in the State Code. Page 9 of 27 Local Agency Investment Fund (LAIF) – As authorized in §16429.1 and by LAIF policies, local government agencies are each authorized to invest up to the deposit limit as designated by the California State Treasurer. The City Treasurer may not invest more than the maximum amount per account as allowed by LAIF. Money Market Mutual Funds – As authorized in §53601(l), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). Corporate Notes – As authorized in §53601(k), local agencies may invest in corporate notes. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations: • Maximum 30% of the portfolio; • Maturities shall not exceed five years from date of purchase; • Eligible notes shall be regularly quoted and traded in the marketplace; • Eligible notes shall be in a rating category of "AA" or better by an NRSRO; • The maximum aggregate investment in each issuer shall not exceed $5 million (PAR value), or no more than 10% of the total investment assets in the commercial paper and the medium-term notes of any single issuer. Professionally Managed Account(s) – The City Treasurer may place up to 50% of the portfolio with a professional portfolio management/investment management firm (firm) The firm will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a public request for proposal (RFP). The firm shall have: • An established professional reputation for asset or investment management; • Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; • Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; • Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and Page 10 of 27 • Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940 Before engagement by the City and except as may be specifically waived or revised, the firm shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions: • The firm may be granted the discretion to purchase and sell investment securities in accordance with this Investment Policy; • The firm is not required to adhere to a buy-and-hold policy; and • The firm does not need City Manager or City Treasurer approval to make permissible investments. Local Agency Bonds and California Local Agency Obligations – As authorized in §53601(a) and §53601(e), the City may invest in California local agency obligations. §53601(a) pertains to investing in bonds issued by a local agency, or by the department, board, agency or authority of the local agency. §53601(e) pertains to investing in bonds and other defined indebtedness of any local agency, or department, board, agency or authority of the local agency within the State of California. The Agency obligations must be invested in the long-term rating category of A or better by an NRSRO. In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers. XI. INVESTMENT POOLS There are three (3) types of investment pools: • State-run pools (e.g., LAIF); • Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools, and Joint Powers Authorities such as the California Asset Management Program (CAMP)); and • Pools that are operated for profit by third parties (e.g. money market funds). The City's Investment Policy permits investment in pools and money market funds as authorized by State Code §16429.1, §53601(l) and §53601(p). XII. PAYMENT AND CUSTODY The City shall engage qualified third-party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds received from the City for a purchase to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. Page 11 of 27 Even though ownership is evidenced in book-entry form rather than by actual certificates, this procedure is commonly referred to as the delivery versus payment (DVP) method for the transfer of securities. XIII. INTEREST EARNING DISTRIBUTION POLICY Interest earnings are generated from pooled investments and specific investments. The following provisions apply to the calculation and distribution of interest earnings. 1. Pooled Investments – It is the general policy of the City to pool all available operating cash of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings as a payment to each fund of an amount based on the month-end cash balance included in the common portfolio for the earning period. 2. Specific Investments – Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV. INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: • Safeguard assets; • The orderly and efficient conduct of its business, including adherence to management policies; • Prevention or detection of errors and fraud; • The accuracy and completeness of accounting records; and • Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: • Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. • Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. • Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. • Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes Page 12 of 27 place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. • Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities (Appendix C). • Written confirmation of telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax or email if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow- up. • Development of a wire transfer agreement with the City's bank and third-party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The system of internal controls developed by the City shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains to cash and investment activities, and the City Treasurer's response shall be provided to the City's Financial Advisory Commission for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Financial Advisory Commission and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix C, "Segregation of Major Investment Responsibilities." XV. REPORTING STANDARDS The City Treasurer shall submit a quarterly Treasurer’s Report to the City Council and the Financial Advisory Commission that includes all cash and investments under the authority of the Treasurer. In addition, the City Treasurer or designee shall ensure all investment transactions are reported on a monthly basis as they occur throughout the quarter. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following: • A certification by the City Treasurer; • A listing of purchases and sales/maturities of investments; Page 13 of 27 • Cash and Investments categorized by authorized investments; LAIF will also be provided quarterly and show yield and maturity; • Comparison of month end actual holdings to Investment Policy limitations; • A two-year list of historical interest rates. XVI. REVIEW OF INVESTMENT PORTFOLIO The securities held by the City must be in compliance with this Policy at the time of purchase. Due to market conditions, some securities may no longer comply subsequent to the date of purchase, therefore a quarterly review of the portfolio will be conducted to identify any securities which may have fallen out of compliance. Any major incidences of noncompliance identified during such review will be reported to the Financial Advisory Commission for confirmation of staff course of action. XVII. FINANCIAL ADVISORY COMMISSION - CITY OF LA QUINTA The Financial Advisory Commission (FAC) is composed of seven members from the public that are appointed by the City Council. The FAC’s membership, qualifications, and powers and duties are prescribed in Chapter 2.70 of the La Quinta Municipal Code and included in this policy as Appendix A. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each commissioner will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the FAC. All commissioners shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest. XVIII. INVESTMENT POLICY ADOPTION The City's Investment Policy will be reviewed annually by the City's Financial Advisory Commission and the City Treasurer. The Financial Advisory Commission will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Financial Advisory Commission, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. The Investment Policy shall be adopted by resolution of the City Council annually before the end of June of each year. Page 14 of 27 City of La Quinta Municipal Code Chapter 2.70 FINANCIAL ADVISORY COMMISSION 2.70.010 General rules regarding the financial advisory commission. Except as set out below, see Chapter 2.06 for general provisions. 2.70.020 Number of members. The financial advisory commission ("FAC") shall initially consist of seven members appointed by, and serving at the will of, the city council. The city council may increase or decrease the number of members from time to time but in no event shall the membership exceed nine members or be less than five members. 2.70.030 Qualifications of members. A. In addition to the qualification requirements set forth in Section 2.06.040 of this code, a minimum of three of the members shall be finance professionals and shall have a verifiable background in finance and/or securities, preferably with knowledge and/or experience in markets, financial controls and accounting for securities. B. For those applying for the professional position, background information will be requested, and potential candidates must agree to a background check and verification by the city manager or designee. 2.70.040 Powers and duties. A. The principal functions of the FAC are: 1. Review at least annually the city's investment policy and recommend appropriate changes; 2. Review at least quarterly the treasury report and note compliance with the investment policy and adequacy of cash and investments for anticipated obligations; 3. Receive and consider other reports provided by the city treasurer; 4. Meet with the independent auditor after completion of the annual audit of the city's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities; 5. Review at least annually the revenue derived from the one percent (1%) transactions and use tax instituted by voters in November 2016 to ensure these funds are used to provide services, programs and capital projects in the city of La Quinta. APPENDIX A Page 15 of 27 6. Serve as a resource for the city treasurer on matters such as proposed investments, internal controls, use of or change of financial institutions, custodians, brokers and dealers. B. The FAC will report to the city council after each meeting either in person or through correspondence at a regular city council meeting. (Ord. 556 § 1, 2017) 2.70.050 References to the Investment Advisory Board. If any other chapter(s) or section(s) in this code refers to the Investment Advisory Board, that chapter(s) or section(s) shall be deemed to refer to the Financial Advisory Commission established by the ordinance amending chapter 2.70 of this code. Page 16 of 27 City of La Quinta Municipal Code Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by Sections 53607 and 53608 of the California Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer, which, for purposes of this chapter, is defined in Section 2.12.010 of this code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under the city council adopted city investment policy and any provision of state law relating to the investing of general city funds, including, but not limited to, Sections 53601 and 53635 of the California Government Code, as said sections now read or may hereafter be amended, from moneys in the city treasurer's custody which are not required for the immediate necessities of the city and as he or she may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord.2 § 1 1982) 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be cancelled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 3.08.050 Reports. The city treasurer shall make a quarterly report to the city council of all investments made pursuant to the authority delegated in this chapter and as permitted by Section 53646(b)(1) of the Government Code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) APPENDIX B Page 17 of 27 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the city council adopted investment policy and terms of any state law, including, but not limited to, Section 53608 of the Government Code, as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 36524 of the Government Code and any other applicable provisions of law. (Ord. 2 § 1, 1982) Page 18 of 27 Function Responsible Parties Develop and recommend modifications to the City's formal Investment Policy City Treasurer, Financial Services Analyst, and Financial Advisory Commission Review City's Investment Policy and recommend City Council action City Manager and City Attorney Adopt formal Investment Policy City Council Implement formal Investment Policy City Treasurer Review financial institutions and select investments City Treasurer or Financial Servies Analyst Acknowledge investment selections City Manager or his/her designee Execute investment transactions City Manager, City Treasurer, or Financial Services Analyst Confirm wires Accounting Manager, Accountant, or Management Assistant Record investment transactions in City's accounting records Accounting Manager or Accountant Investment cerification- match broker confirmation to City's investment records City Treasurer or Financial Services Analyst Reconcile investment records to accounting records and bank statements Financial Services Analyst Reconcile investment records to treasurer's report of investments City Treasurer, Accounting Manager, or Financial Services Analyst Security of investments at City Accounting Manager or Management Assistant Security of investments outside of City Third Party Custodian Review internal control procedures External Auditor SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES APPENDIX C Page 19 of 27 Banking Services -Bank of the West, San Francisco, CA (Banking Services) -Sunwest Bank, Irvine, CA (Banking Services - Dune Palms Mobile Estates) Custodian Services -The Bank of New York Mellon/Pershing LLC -Stifel Deferred Compensation -International City/County Management Association Retirement Corporation (ICMA-RC) dba MissionSquare Retirement Broker/Dealer Services -Stifel, Nicholaus, & Company, Inc. -Higgins Capital Management, Inc. -Great Pacific Securities Government/Joint Powers Authority Pools -State of California Local Agency Investment Fund (LAIF) -California Asset Management Program (CAMP) -County of Riverside Pooled Investment Fund(1) Trustee Services -US Bank Trust Company, NA(2) Other Post Employment Benefits (OPEB) Trust -California Employers' Retirement Benefits Trust (CERBT)/CalPERS Pension Trust - Administration -Public Agency Retirement Services (PARS) Listing of Approved Financial Institutions (2) US Bank is the fiscal agent for all of the following bonds: 2013 (refunded in 2021), 2014 (refunded in 2021), 2016, and 2021 Successor Agency to the La Quinta Redevelopment Agency (RDA) Bonds. US Bank is also the trustee and asset custodian for the PARS pension trust. As of January 29, 2022, U.S. Bank, National Association transitioned its Global Corporate Trust business to wholly owned subsidiary U.S. Bank Trust Company, National Association. (1)The County of Riverside Treasurer maintains one Pooled Investment Fund for all local jurisdictions having funds on deposit in the County Treasury. The City’s fire funds, which are property taxes collected to fund fire services in the City, are kept in reserve with the County to be used as expenses are incurred. APPENDIX D Page 20 of 27 INVESTMENT MANAGEMENT PROCESS AND RISK Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee each person, treasurer, or governing body authorized to make investment decisions on behalf of local agencies. Trustees are subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors). Risk is inherent throughout the investment process. There is investment risk associated with any investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity. Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer-term investments Another element of risk is liquidity risk. Instruments with call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities. Default risk represents the possibility that the borrower may be unable to repay the obligation as scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum. The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for another or APPENDIX E Page 21 of 27 selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management. The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust. Source: Chapter II. Fund Management from the Local Agency Investment Guidelines Issued by California Debt and Investment Advisory Commission Page 22 of 27 GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of La Quinta. It includes combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large- denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a bor rower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. APPENDIX F Page 23 of 27 DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued at discount and redeemed at maturity for full face value DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. GOVERNMENT SPONSORED ENTERPRISES (GSEs): Privately held corporations with public purposes created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy. Securities issues by GSEs carry the implicit backing of the U.S. Government, but they are not direct obligations of the U.S. Government. Typically referred to as ‘Agency Bonds’ or ‘Agencies’. FNMAs or Fannie Mae (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FHLBs (Federal Home Loan Bank) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage-lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. FFCBs (Federal Farm Credit Bank) – Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. Page 24 of 27 FHLMCs or Freddie Mac (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly. FAMCs or Farmer Mac (Federal Agricultural Mortgage Corporation) - FAMC increases the availability and affordability of credit for the benefit of American agriculture and rural communities. They are the nation’s premier secondary market for agricultural credit, providing financial solutions to a broad spectrum of the agricultural community, including agricultural lenders, agribusinesses, and other institutions that can benefit from access to flexible, low-cost financing and risk management tools. FAMC is regulated by the Farm Credit Administration. Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), and Tennessee Valley Authority notes (TVA's). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit per entity. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open- market operations. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and about 3,000 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass- throughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund): - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period, the minimum transaction is $5,000 and the City follows the state guidance for maximum total balance. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time Page 25 of 27 they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. NRSRO (NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION): A credit rating agency recognized by the Securities and Exchange Commission (SEC). Examples include Fitch Ratings, Inc., Moody’s Investor’s Services, Inc., and S&P Global Ratings, among others. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker- dealers, banks and a few unregulated firms. Page 26 of 27 QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO) and REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. SSAE 16: The Statement on Standards for Attestation Engagements No. 16 (SSAE 16) is a set of auditing standards and guidance on using the standards, published by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for redefining and updating how service companies report on compliance controls. The Service Organizational Control report (SOC-1) contains internal controls over financial reporting and is used by auditors and office controllers. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A non-interest- bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. Page 27 of 27 TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: June 1, 2022 STAFF REPORT AGENDA TITLE: DISCUSS FISCAL YEAR 2022/23 PRELIMINARY PROPOSED BUDGET AND APPROVE ALLOCATION OF MEASURE G SALES TAX REVENUE RECOMMENDATION Discuss fiscal year 2022/23 preliminary proposed budget and approve allocation of Measure G Sales Tax revenue. EXECUTIVE SUMMARY • This budget study session focuses on the General Fund and Internal Service Funds. This information was presented to the City Council on May 17, 2022. • A second budget study session will be presented to City Council on June 7, 2022 and will cover Special Revenue Funds, Capital Funds, and Enterprise Funds of the City. • All departments evaluated budget needs based on the City’s priorities and operational impacts due to the current economy when preparing their 2022/23 budgets. • Final budget adoption is scheduled for June 21, 2022. FISCAL IMPACT The preliminary General Fund budget projects a surplus of $411,676 with projected General Fund revenues of $67,821,100 (including Measure G sales tax) and proposed operational and capital expenditures of $64,056,424. Unappropriated Measure G sales tax revenue of $3,353,000 shall remain in reserves. BACKGROUND/ANALYSIS The goal of the June 1 study session is to provide an overview of the General Fund and Internal Service Funds and approve the use of Measure G sales tax revenues. Each department section contains extensive notes to explain changes from 2020/21 actuals, changes in 2021/22, and projections for 2022/23. The budget format is similar to the prior fiscal year. BUSINESS SESSION ITEM NO. 2 The budget is a puzzle put together to deliver city services to residents and visitors alike. Community input is greatly appreciated and necessary to ensure an inclusive budget. It is our goal to use citizen input and feedback to develop the annual budget. The Financial Advisory Commission provides oversight of Measure G funds and assists with reviewing the 2022/23 operating and capital improvement budgets. To encourage citizen participation in public meetings the 2022/23 budget schedule is available online at https://www.laquintaca.gov/our-city/city- departments/finance/budget/proposed-budget-2022-23-timeline and noted below. 5/17/2022 City Council Meeting - Budget Study Session #1 - (General Fund and Internal Service Funds focus) 6/1/2022 Financial Advisory Commission Meeting - Final review of proposed Measure G sales tax uses 6/7/2022 City Council Meeting - Budget Study Session #2 - (All Appropriations- General Fund, Internal Service Funds, Enterprise, and Special Revenue Funds) 6/7/2022 Housing Authority Board Meeting - Budget Study Session #1 (Housing Funds Only) 6/8/2022 Housing Commission Meeting - Final Review of proposed Housing Authority Budget 6/21/2022 City Council Meeting - Adopt Operating and CIP budget 6/21/2022 Housing Authority - Adopt Budget PUBLIC MEETING DATES FISCAL YEAR 2022/23 BUDGET Attachment 1 provides a narrative of General Fund revenues and expenses, Internal Service Funds, and the Redevelopment Agency loan repayment to the City. Line item details for these revenues and expenses are located in Exhibit A of the Attachment. ALTERNATIVES The Commission may wish to request further information regarding specific items. Per State code the budget must be adopted prior to June 30. Prepared by: Claudia Martinez, Finance Director Attachment: 1.Fiscal Year 2022/23 Proposed Budget Overview 2022/23 PROPOSED BUDGET STUDY SESSION #1 The first budget study session is designed to provide an overview of the General Fund and four Internal Service Funds (ISF’s). Special Revenue, Capital, and Enterprise Funds will be presented on June 7, 2022. Exhibit A includes proposed revenue and expenditure details for all General Fund and Internal Service Funds. After facing the fiscal challenges of the pandemic and economic uncertainty, the City of La Quinta is heading into FY 2022/23 with a proposed budget that reflects a solid financial recovery, surpassing projections from the last fiscal year. Increases in consumer spending in leisure and hospitality facilitated a strong economic recovery in FY 2021/22. However, the proposed budget accounts for the pandemic’s continuing effects on consumer spending, health care and pension costs, inflation and market volatility, and the availability and cost of materials/equipment and fuel. The FY 2022/23 proposed budget was developed using a moderate and responsible approach to revenue projections while meeting the community’s needs and addressing the City’s goals for the upcoming year. Staff is committed to upholding financial sustainability by continuing to move forward with paying down pension obligations and ongoing investment in maintaining and improving the City’s infrastructure. This budget is designed to keep the City of La Quinta thriving and address the needs and expectations of our community while taking the steps necessary to ensure our long-term fiscal health. In formulating their budget proposals, departments were encouraged to evaluate all current expenditures including COVID-19 response and recovery, impacts of the current economy, as well as key operational needs for City departments to improve their functions and move forward efficiently. The proposed General Fund budget has a projected surplus of $411,676 as a result of cautious increases to revenue estimates along with expenditure projections that meet departmental needs for daily operations and reopening expenditures. Revenues 67,821,100$ Less Operating/CIP Expenses (64,056,424) Preliminary Budget Surplus 3,764,676 Less Measure G Reserves (3,353,000) BUDGET SURPLUS 411,676$ GENERAL FUND FY 2022/23 PROPOSED BUDGET ATTACHEMENT 1 The budget provides resources for public safety, daily operations and capital improvements for the upcoming fiscal year. Projections are anticipated to change before budget adoption. The final proposed budget will be structurally balanced. REVENUES The City’s revenue estimates for FY 2022/23 represent a 4% increase over the revised FY 2021/22 projections, revenues by category are summarized below: The local economy has rebounded from the initial pandemic recession and economic growth in FY 2021/22 surpassed initial projections. Taxes - The economy continues to rebound as consumer spending and local travel activity is projected to continue in the upcoming fiscal year. With the return of large events, tourism-related revenue is also expected to increase. The City’s top three revenue sources for the General Fund total $46,890,000 (or 69% of the total $67,821,100) and continue to be: • Sales Taxes $24,500,000 • Transient Occupancy Taxes (TOT) $12,475,000 • Property Taxes $9,915,000 Licenses & Permits - Development related permits, business licenses, and Short- Term Vacation Rental (STVR) inspection fees have been decreased by a combined amount of $417,000 when compared to the current FY 2021/22 budget. The largest decrease in this category, Public Works Permits, is due to the one-time revenue generated in 2021/22 from mass-grading permits at several projects which have moved into the building phase. Intergovernmental - The majority of the revenues in this category are derived from fire service property taxes restricted for fire services. The revenue is recognized as current year collections or use of reserves; we are not anticipating using reserves based on current estimates provided by the County, resulting in a decrease of $800,200 from the prior fiscal year. General Fund Revenues 2021/22 Original 2021/22 Current 2022/23 Proposed Change Current V. Proposed % Change Taxes 45,957,000 51,157,000 54,646,700 3,489,700 7% License & Permits 2,252,000 3,122,000 2,823,200 (298,800) -10% Intergovernmental 8,251,100 8,454,422 7,653,000 (801,422) -9% Charges for Services 876,010 876,010 1,081,100 205,090 23% Fines & Assessment 294,000 609,000 462,000 (147,000) -24% Other/Misc. 1,174,100 1,174,100 1,155,100 (19,000) -2% Total Revenues 58,804,210 65,392,532 67,821,100 2,428,568 4% Charges for Services - Leisure activities, wellness center memberships, and recreational sports fees have been increased as the public returns to in-person activities due to lifted COVID-19 pandemic restrictions. In addition, services related to building and public works plan checks have been increased due to current residential and commercial development. Fines & Assessments - A decrease of $195,000 is anticipated for administrative citations due to increased compliance and enforcement measures with the STVR program. In addition, a decrease of $10,000 for motor vehicle code fines is reflective of 2021/22 year to date activity. Use of Money & Property/Miscellaneous – Investment interest earnings are volatile and due to the current economic conditions; therefore, we are not making any significant changes over the prior year. The decrease in Miscellaneous revenue is reflective of 2021/22 year- to-date activity and anticipated reimbursements. EXPENSES City staff and management have been prudent in their spending to ensure budgets are in line to end the current fiscal year with savings. This has proven to be a challenge given the current economy and uncertainties that could affect the City’s financial condition such as rising costs due to inflation and fuel prices, market volatility and recession concerns, supply chain issues, and recruitment and retention of city employees. A summary of expenses by department is provided in the chart below, along with an explanation of major variances specific to departments. Overall increases affecting all departments include salary and benefits (annual step increases along with increase in CalPERS rates) and internal service charges supporting IT (new software and enhanced security/anti-fraud measures), and contract services increased due to inflationary impacts. Marketing & Community Relations: An increase in marketing is requested in order to continue efforts in bringing leisure and hospitality dollars to the City of La Quinta. City Clerk: Increases in the City Clerk budget reflect the movement of all Short- Term Vacation Rental (STVR) related expenses that were previously coded to the Hub and Code Compliance along with the upcoming elections. Police and Fire: Police and fire contract expenses are incorporated using estimates from the County of Riverside, final numbers will be reflective of rates once contracts are approved. These combined budgets are a total of $27,037,772 or 42% of the proposed General Fund budget. Parks Maintenance: Increase is due to the city-wide landscape maintenance contract and utilities, ongoing maintenance costs for the two new parks, SilverRock and the X-Park, and park equipment internal service fund charges used to replace playground structures, benches, shade, and other park improvements. Streets: Increase is due to additional Professional Services needed to assist staff with ongoing maintenance and operations. General Fund Expenditures 2021/22 Original 2021/22 Current 2022/23 Proposed Change Current V. Proposed City Council 302,200 302,200 351,400 49,200 City Manager 1,076,000 1,076,000 1,177,540 101,540 Marketing & Community Relations 1,325,900 1,425,900 1,632,128 206,228 City Attorney 696,000 796,000 796,000 - City Clerk 625,200 635,200 1,257,526 622,326 Human Resources 376,000 411,000 495,698 84,698 Police 17,855,100 17,865,100 18,185,900 320,800 Fire 7,660,800 8,550,486 8,851,872 301,386 Community Resources Admin. 808,500 828,500 880,480 51,980 Wellness Center Operations 597,900 627,900 682,102 54,202 Recreational Programs & Events 908,300 1,078,300 1,088,734 10,434 Code Compliance/Animal Control 1,506,320 1,506,320 1,663,996 157,676 Parks Maintenance 2,530,900 2,580,900 3,047,222 466,322 Public Buildings 1,321,200 1,321,200 1,390,052 68,852 Public Works Administration 739,900 739,900 794,862 54,962 Public Works Dev. Services 431,200 448,200 512,960 64,760 Streets 496,600 498,600 754,768 256,168 Engineering Services 761,800 1,101,900 1,020,756 (81,144) Design & Development Admin.656,200 696,200 756,824 60,624 Planning 678,600 678,600 744,830 66,230 Building 919,800 1,094,800 1,291,362 196,562 The Hub 986,000 1,036,000 1,236,482 200,482 Finance 1,444,100 1,444,100 1,595,830 151,730 Centralized Services 10,458,206 23,880,932 13,847,100 (10,033,832) Total Expenditures 55,162,726 70,624,238 64,056,424 (6,567,814) Centralized Services - This department budget captures citywide expenses. Annually this division’s budget fluctuates most because it captures large one-time expenses such as pension and OPEB (Other Post-Employment Benefits) trust contributions, building improvements, land acquisition, and capital improvement carryovers for multi-year projects. The FY 2022/23 annual pension liability contribution of $1,246,100 which is a year- over-year increase of $269,000. An additional discretionary payment of $1 million is included in the proposed budget request to continue efforts in paying down the City’s pension obligation to increase our fiscal resiliency ahead of the next economic crisis. To continue the City’s efforts of staff development and succession planning, managing PERS increases, responding to labor market adjustments, and to address staffing needs, an increase of $500,000 is recommended to execute these principles. INTERNAL SERVICE FUNDS (ISF) ISF are used to account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in these funds and charged to user departments based on personnel and large equipment assigned to each. The following is a summary of expenses by ISF: Equipment Replacement Fund – The increase in this fund is to account for higher fuel costs and purchase of additional machinery and equipment to increase efficiency in operations. Information Technology Fund – An increase in contract services accounts for enhanced fraud and security protection and citywide software licenses annual renewals. Park Equipment Fund – The increase of $290,000 will assist the City with prioritizing the Community Workshop needs of upgrading community parks. Improvements Fund Current FY 21/22 Proposed FY 22/23 Variance Equipment Replacement 1,319,714 1,608,750 289,036 Information Technology 2,256,627 2,258,054 1,427 Park Equipment 255,000 545,000 290,000 Insurance Fund 936,800 984,100 47,300 4,768,141 5,395,904 627,763 INTERNAL SERVICE FUNDS SUMMARY includes benches, shade canopy replacements, lighting at the Civic Center and La Quinta Park, and upgraded playground and fitness equipment. Insurance Fund – An overall increase of $47,300 is due to the estimated insurance premiums provided by California Joint Powers Authority (CJPIA), final projections will be provided at budget adoption. MEASURE G SALES TAX Measure G sales tax revenue is anticipated to be $13,500,000 and is allocated as presented below in the proposed budget. The Financial Advisory Commission will be reviewing the proposed uses of Measure G revenues at the June 1st meeting. REDEVELOPMENT LOAN REPAYMENT The City’s Last and Final Recognized Obligation Payment Schedule (ROPS) for the Successor Agency (former Redevelopment Agency) includes an annual loan repayment. For 2022/23 the total loan repayment is $3,369,682, which is allocated 80% to the General Fund ($2,695,746) and 20% ($673,936) to the Housing Authority Fund. These revenues will be recognized in unassigned reserves in each fund and are not allocated to current expenses. The final loan repayment is scheduled for fiscal year 2029/30. Remaining outstanding loan repayments after 2022/23 total $25,116,811. PUBLIC PARTICIPATION The budget is a puzzle put together to deliver city services to residents and visitors alike. Community input is greatly appreciated and necessary to ensure an inclusive budget. It is our goal to use citizen input and feedback to develop the annual budget. The Financial Advisory Commission provides oversight of Measure G funds and assists with reviewing the 2022/23 operating and capital improvement budgets. Measure G Sales Tax Revenue 13,500,000$ Police Services (5,100,000) Capital Improvements (5,047,000) Available for Appropriation 3,353,000$ MEASURE G SALES TAX SUMMARY To encourage citizen participation in public meetings the 2022/23 budget schedule is available online at https://www.laquintaca.gov/our-city/city- departments/finance/budget/proposed-budget-2022-23-timeline and noted below. MEASURE G REVENUE AND USES SUMMARY 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 2021/22 Budget 12,300,000 2022/23 Budget (Proposed)13,500,000 TOTAL 71,093,340$ Year Earned Reserve Allocation Year Operational Capital Reserves Total by Year 2016/17 Eisenhower Dr. Retention Basin 201704MG 750,000 2016/17 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 201806 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 201806 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 201603MG 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 2018056MG 411,013 Highway 111 Corridor Improvements 201905MG 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 201905MG 250,000 Measure G Reserves 2020/21 7,524,389 12,594,389 2021/22 Public Safety Contract Services 5,163,000 Landscape Renovation Improvements 201603MG 1,408,356 Highway 111 Corridor Improvements 201905MG 1,000,000 Fritz Burns Park Improvements 350,000 Allocate Bridge Funding 7,468,061 Measure G Reserves 2021/22 (3,089,417) 12,300,000 2022/23 Public Safety Contract Services 5,100,000 Landscape Renovation Improvements 201603MG 500,000 La Quinta Skate Park Conversion 201903MG 500,000 Sports Complex Lighting 202204MG 250,000 Village Underground Utilities Feasibility 202206MG 100,000 ADA Transition Plan Update 202209MG 150,000 Village Parking Lot 202211MG 500,000 Phase II Public Safety Camera System 202213MG 1,797,000 Smart Infrastructure Feasibility 202213MG 250,000 Highway 111 Corridor Improvements 201905MG 1,000,000 Measure G Reserves 2022/23 3,353,000 13,500,000 TOTAL 20,808,000$ 34,893,099$ 15,392,241$ 71,093,340$ 29%49%22% MEASURE G REVENUES AND USES SUMMARY MEASURE G USES CITY OF LA Q U I NTA PROPOSED BUDGET I 40 EXHIBIT A 5/17/2022 City Council Meeting - Budget Study Session #1 - (General Fund and Internal Service Funds focus) 6/1/2022 Financial Advisory Commission Meeting - Final review of proposed Measure G sales tax uses 6/7/2022 City Council Meeting - Budget Study Session #2 - (All Appropriations- General Fund, Internal Service Funds, Enterprise, and Special Revenue Funds) 6/7/2022 Housing Authority Board Meeting - Budget Study Session #1 (Housing Funds Only) 6/8/2022 Housing Commission Meeting - Final Review of proposed Housing Authority Budget 6/21/2022 City Council Meeting - Adopt Operating and CIP budget 6/21/2022 Housing Authority - Adopt Budget The annual budget process coordinates the allocation of city revenues for essential services such as police and fire, community programs and events, and capital improvement projects. The City invites you to participate and/or track public meetings regarding the fiscal year 2022/23 budget. Proposed public meeting dates are summarized below and as meetings occur budget information presented will be available online on a dedicated City webpage within the Finance Department at: https://www.laquintaca.gov/our-city/city-departments/finance/budget/proposed- budget-2022-23-timeline Questions regarding the fiscal year 2022/23 budget may be directed to finance@laquintaca.gov or by calling 760-777-7055. PUBLIC MEETING DATES FISCAL YEAR 2022/23 BUDGET CITY OF LA QUINTA FY 2022/23 PROPOSED BUDGET 1 ESTIMATED CURRENT RESOURCES: REVENUES: TAXES 54,646,700$ LICENSES & PERMITS 2,823,200 INTERGOVERNMENTAL 7,653,000 CHARGES FOR SERVICES 1,081,100 FINES & ASSESSMENTS 462,000 OTHER/MISCELLANEOUS 1,155,100 TOTAL ESTIMATED CURRENT RESOURCES 67,821,100$ ESTIMATED CURRENT REQUIREMENTS: EXPENDITURES: CITY COUNCIL 351,400$ CITY MANAGER 2,809,668 CITY MANAGER 1,177,540 MARKETING/COMMUNITY RELATIONS 1,632,128 CITY ATTORNEY 796,000 CITY CLERK 1,257,526 COMMUNITY RESOURCES (CR)31,848,782 HUMAN RESOURCES 495,698 POLICE 18,185,900 FIRE 8,851,872 CR ADMINISTRATION 880,480 WELLNESS CENTER OPERATIONS 682,102 RECREATION PROGRAMS/SPECIAL EVENTS 1,088,734 CODE COMPLIANCE/ANIMAL CONTROL 1,663,996 PUBLIC WORKS 7,520,620 PARKS MAINTENANCE 3,047,222 PUBLIC BUILDINGS 1,390,052 PUBLIC WORKS ADMINISTRATION 794,862 DEVELOPMENT SERVICES 512,960 STREETS 754,768 ENGINEERING SERVICES 1,020,756 DESIGN & DEVELOPMENT 4,029,498 D&D ADMINISTRATION 756,824 PLANNING 744,830 BUILDING 1,291,362 THE HUB 1,236,482 FISCAL SERVICES 15,442,930 FINANCE 1,595,830 CENTRAL SERVICES (Includes CIP)13,847,100 TOTAL ESTIMATED CURRENT REQUIREMENTS 64,056,424$ PRELIMINARY BUDGET SURPLUS 3,764,676$ LESS MEASURE G SALES TAX RESERVES (3,353,000) BUDGET SURPLUS/(DEFICIT)411,676$ FISCAL YEAR 2022/23 PROPOSED BUDGET CITY OF LA QUINTA GENERAL FUND REVENUES AND EXPENDITURES BY DEPARTMENT/DIVISION CITY OF LA QUINTA FY 2022/23 PROPOSED BUDGET 2 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed 22/23 vs. Current 21/22 % Change in Budget 310 - Tax Revenues 2,578,492 2,605,000 2,605,000 1,571,118 2,890,000 285,000 11%101-0000-40310 Property Tax Revenue 4,769,373 4,706,000 4,706,000 2,908,868 4,845,000 139,000 3%101-0000-40311 No-Low City Property Tax 1,884,546 1,616,000 2,016,000 1,048,915 2,180,000 164,000 8%101-0000-40315 RPTTF Pass Through 10,729,160 10,000,000 10,500,000 6,973,107 11,000,000 500,000 5%101-0000-41320 State Sales Tax 12,594,389 11,500,000 12,300,000 8,587,127 13,500,000 1,200,000 10%101-0000-41326 Measure G Sales Tax 1,568,997 750,000 750,000 859,819 650,000 (100,000)-13%101-0000-41327 Document Transfer Tax 4,545,117 5,000,000 6,500,000 6,596,690 7,000,000 500,000 8%101-0000-41400 TOT - Hotels 6,213,353 3,000,000 5,000,000 4,800,261 5,000,000 0 0%101-0000-41401 TOT - Short Term Vac. Rentals 69,987 90,000 90,000 77,822 100,000 10,000 11%101-0000-41402 TOT - Bed and Breakfast 243,520 250,000 250,000 251,513 375,000 125,000 50%101-0000-41416 TOT - Resort Fees 894,559 785,000 785,000 548,788 1,000,000 215,000 27%101-0000-41505 Franchise Taxes - Burrtec 173,961 140,000 140,000 0 160,000 20,000 14%101-0000-41508 Southern California Gas Franchise Fee 644,058 650,000 650,000 328,827 660,000 10,000 2%101-0000-41509 Cable Television Franchise Fee 229,886 250,000 250,000 105,847 275,000 25,000 10%101-0000-41510 Communications Franchise Fees 4,376,455 4,615,000 4,615,000 2,355,489 5,011,700 396,700 9%101-0000-41800 Property Tax in Lieu of VLF 310 - Tax Revenues Totals:51,515,856 45,957,000 51,157,000 37,014,192 54,646,700 3,489,700 7% 320 - Licenses & Permits 5,850 9,000 9,000 975 2,000 (7,000)-78%101-0000-41411 STVR Inspection Fee 355,690 894,000 894,000 880,500 900,000 6,000 1%101-0000-41415 STVR Registration Fee 373,801 350,000 350,000 299,906 340,000 (10,000)-3%101-0000-41600 Business Licenses 0 0 0 51,349 40,000 40,000 0%101-0000-41602 STVR Business Licenses 2,800 1,000 1,000 1,221 2,000 1,000 100%101-0000-41610 Film Permits 437,209 210,000 750,000 797,922 600,000 (150,000)-20%101-0000-42400 Building Permits 75,101 90,000 90,000 133,526 90,000 0 0%101-0000-42401 Plumbing Permits 90,394 100,000 100,000 138,288 100,000 0 0%101-0000-42402 Mechanical Permits 65,016 80,000 80,000 102,790 80,000 0 0%101-0000-42403 Electrical Permits 216,745 180,000 180,000 219,547 200,000 20,000 11%101-0000-42404 Miscellaneous Permits 3,630 5,000 5,000 4,230 6,000 1,000 20%101-0000-42405 Garage Sale Permits 250 0 0 0 0 0 0%101-0000-42406 Golf Cart Permits 18,237 10,000 10,000 38,002 15,000 5,000 50%101-0000-42408 Grading Permits 0 1,000 1,000 0 0 (1,000)-100%101-0000-42410 Driveway Permits 55,610 60,000 60,000 96,891 65,000 5,000 8%101-0000-42420 Fire Plan Review Fee 60,030 40,000 40,000 83,118 60,000 20,000 50%101-0000-42421 Fire Inspection Fee 2,850 2,000 2,000 1,103 2,000 0 0%101-0000-42430 Transportation Permits 8,828 10,000 10,000 22,932 15,000 5,000 50%101-0000-42431 Conditional Use Permits 5,400 5,000 5,000 9,838 8,700 3,700 74%101-0000-42433 Minor Use Permit 11,616 15,000 15,000 18,431 16,500 1,500 10%101-0000-42434 Sign Permit 56,228 40,000 40,000 54,752 50,000 10,000 25%101-0000-42435 Site Development Permit 5,313 12,000 12,000 24,901 12,000 0 0%101-0000-42436 Final Landscaping Plans 6,154 0 0 3,446 1,000 1,000 0%101-0000-42437 Development Agreement 800 10,000 10,000 36,174 10,000 0 0%101-0000-42439 Temporary Use Permit 154,626 120,000 450,000 405,499 200,000 (250,000)-56%101-0000-43632 Public Works Permits 12,431 8,000 8,000 9,128 8,000 0 0%101-0000-43638 NPDES Inspections 320 - Licenses & Permits Totals:2,024,611 2,252,000 3,122,000 3,434,470 2,823,200 (298,800)-10% 330 - Intergovernmental 502,034 0 203,322 0 0 (203,322)-100%101-0000-41710 State Gov't Revenue 2,578,492 2,605,000 2,605,000 1,571,118 2,890,000 285,000 4,769,373 4,706,000 4,706,000 2,908,868 4,845,000 139,000 1,884,546 1,616,000 2,016,000 1,048,915 2,180,000 164,000 10,729,160 10,000,000 10,500,000 6,973,107 11,000,000 500,000 12,594,389 11,500,000 12,300,000 8,587,127 13,500,000 1,200,000 1,568,997 750,000 750,000 859,819 650,000 (100,000) 4,545,117 5,000,000 6,500,000 6,596,690 7,000,000 500,000 6,213,353 3,000,000 5,000,000 4,800,261 5,000,000 0 69,987 90,000 90,000 77,822 100,000 10,000 243,520 250,000 250,000 251,513 375,000 125,000 894,559 785,000 785,000 548,788 1,000,000 215,000 173,961 140,000 140,000 0 160,000 20,000 644,058 650,000 650,000 328,827 660,000 10,000 229,886 250,000 250,000 105,847 275,000 25,000 4,376,455 4,615,000 4,615,000 2,355,489 5,011,700 396,700 51,515,856 45,957,000 51,157,000 37,014,192 54,646,700 3,489,700 5,850 9,000 9,000 975 2,000 (7,000) 355,690 894,000 894,000 880,500 900,000 6,000 373,801 350,000 350,000 299,906 340,000 (10,000) 0 0 0 51,349 40,000 40,000 2,800 1,000 1,000 1,221 2,000 1,000 437,209 210,000 750,000 797,922 600,000 (150,000) 75,101 90,000 90,000 133,526 90,000 0 90,394 100,000 100,000 138,288 100,000 0 65,016 80,000 80,000 102,790 80,000 0 216,745 180,000 180,000 219,547 200,000 20,000 3,630 5,000 5,000 4,230 6,000 1,000 250 0 0 0 0 0 18,237 10,000 10,000 38,002 15,000 5,000 0 1,000 1,000 0 0 (1,000) 55,610 60,000 60,000 96,891 65,000 5,000 60,030 40,000 40,000 83,118 60,000 20,000 2,850 2,000 2,000 1,103 2,000 0 8,828 10,000 10,000 22,932 15,000 5,000 5,400 5,000 5,000 9,838 8,700 3,700 11,616 15,000 15,000 18,431 16,500 1,500 56,228 40,000 40,000 54,752 50,000 10,000 5,313 12,000 12,000 24,901 12,000 0 6,154 0 0 3,446 1,000 1,000 800 10,000 10,000 36,174 10,000 0 154,626 120,000 450,000 405,499 200,000 (250,000) 12,431 8,000 8,000 9,128 8,000 0 2,024,611 2,252,000 3,122,000 3,434,470 2,823,200 (298,800) 502,034 0 203,322 0 0 (203,322) CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS FY 2022/23 PROPOSED BUDGET 3 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed 22/23 vs. Current 21/22 % Change in Budget 7,591,078 7,047,900 7,047,900 726,453 7,400,000 352,100 5%101-0000-42500 Fire Service Credit 70,110 800,200 800,200 561,645 0 (800,200)-100%101-0000-42501 Fire Service Reserves 0 0 0 24,516 0 0 0%101-0000-43100 FEMA 367,882 400,000 400,000 272,761 250,000 (150,000)-38%101-0000-43633 CSA 152 Assessments 17,859 0 0 0 0 0 0%101-0000-43634 CVWD 3,000 3,000 3,000 0 3,000 0 0%101-0000-43650 Contributions from Other Agencies 330 - Intergovernmental Totals:8,551,963 8,251,100 8,454,422 1,585,375 7,653,000 (801,422)-9% 340 - Charges for Services 6,891 16,200 16,200 10,227 35,000 18,800 116%101-0000-42200 Leisure Enrichment 84 0 0 0 0 0 0%101-0000-42202 Gift Shop 0 16,200 16,200 25,895 40,000 23,800 147%101-0000-42210 Youth Sports 75 2,160 2,160 5,725 1,000 (1,160)-54%101-0000-42211 Adult Sports (50)12,600 12,600 6,326 35,000 22,400 178%101-0000-42212 Facility Rentals 0 7,200 7,200 0 10,000 2,800 39%101-0000-42213 Special Events 6,979 19,800 19,800 10,591 20,000 200 1%101-0000-42214 Wellness Center Leisure Enrichment 0 550 550 0 1,000 450 82%101-0000-42216 Wellness Center Special Events 10,425 54,000 54,000 34,235 75,000 21,000 39%101-0000-42218 Wellness Center Memberships 2,296 0 0 1,301 0 0 0%101-0000-42300 Cash Over/Short 95 200 200 25 400 200 100%101-0000-42303 NSF Charges 38,000 3,000 3,000 (12,698)3,000 0 0%101-0000-42412 Minor Adjustment, Plan Checks 55,357 25,000 25,000 25,414 25,000 0 0%101-0000-42415 Tentative Tract Map 29,685 20,000 20,000 36,552 30,000 10,000 50%101-0000-42416 Digitization/Records Management 4,400 2,000 2,000 4,056 2,500 500 25%101-0000-42417 Modification by Applicant 8,750 6,000 6,000 1,000 3,000 (3,000)-50%101-0000-42440 Appeals - Permits, Licenses, Projects, Bids 405 0 0 0 0 0 0%101-0000-42441 Planning Compliance Review 1,052 10,000 10,000 11,774 10,000 0 0%101-0000-42443 Zone Change 11,753 5,000 5,000 2,967 5,000 0 0%101-0000-42445 Environmental Assessment 0 10,000 10,000 10,465 10,000 0 0%101-0000-42446 General Plan Amendment 9,750 8,000 8,000 7,438 11,000 3,000 38%101-0000-42447 Home Occupations 3,005 15,000 15,000 5,224 10,000 (5,000)-33%101-0000-42448 Tentative Parcel Map 14,329 10,000 10,000 4,946 10,000 0 0%101-0000-42451 Specific Plan 9,016 5,000 5,000 11,798 5,000 0 0%101-0000-42460 Pre-Application Review 521,451 475,000 475,000 694,428 526,000 51,000 11%101-0000-42600 Building Plan Check Fees 498 600 600 554 600 0 0%101-0000-42610 SMIP Fees 473 500 500 410 600 100 20%101-0000-42615 CBSC Administrative Fees 225,852 150,000 150,000 276,650 180,000 30,000 20%101-0000-42810 Public Works Dev. Plan Check Fee 1,787 2,000 2,000 5,585 2,000 0 0%101-0000-43631 CVMSHCP Admin Fee 0 0 0 12,608 30,000 30,000 0%101-0000-43635 VGPS TBID Admin Fee 340 - Charges for Services Totals:962,358 876,010 876,010 1,193,497 1,081,100 205,090 23% 7,591,078 7,047,900 7,047,900 726,453 7,400,000 352,100 70,110 800,200 800,200 561,645 0 (800,200) 0 0 0 24,516 0 0 367,882 400,000 400,000 272,761 250,000 (150,000) 17,859 0 0 0 0 0 3,000 3,000 3,000 0 3,000 0 8,551,963 8,251,100 8,454,422 1,585,375 7,653,000 (801,422) 6,891 16,200 16,200 10,227 35,000 18,800 84 0 0 0 0 0 0 16,200 16,200 25,895 40,000 23,800 75 2,160 2,160 5,725 1,000 (1,160) (50)12,600 12,600 6,326 35,000 22,400 0 7,200 7,200 0 10,000 2,800 6,979 19,800 19,800 10,591 20,000 200 0 550 550 0 1,000 450 10,425 54,000 54,000 34,235 75,000 21,000 2,296 0 0 1,301 0 0 95 200 200 25 400 200 38,000 3,000 3,000 (12,698)3,000 0 55,357 25,000 25,000 25,414 25,000 0 29,685 20,000 20,000 36,552 30,000 10,000 4,400 2,000 2,000 4,056 2,500 500 8,750 6,000 6,000 1,000 3,000 (3,000) 405 0 0 0 0 0 1,052 10,000 10,000 11,774 10,000 0 11,753 5,000 5,000 2,967 5,000 0 0 10,000 10,000 10,465 10,000 0 9,750 8,000 8,000 7,438 11,000 3,000 3,005 15,000 15,000 5,224 10,000 (5,000) 14,329 10,000 10,000 4,946 10,000 0 9,016 5,000 5,000 11,798 5,000 0 521,451 475,000 475,000 694,428 526,000 51,000 498 600 600 554 600 0 473 500 500 410 600 100 225,852 150,000 150,000 276,650 180,000 30,000 1,787 2,000 2,000 5,585 2,000 0 0 0 0 12,608 30,000 30,000 962,358 876,010 876,010 1,193,497 1,081,100 205,090 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS FY 2022/23 PROPOSED BUDGET 4 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed 22/23 vs. Current 21/22 % Change in Budget 350 - Fines, Forfeitures & Abatements 504,205 60,000 375,000 324,533 180,000 (195,000)-52%101-0000-42700 Administrative Citations 5,812 5,000 5,000 188 5,000 0 0%101-0000-42701 Lot Abatement 33,669 30,000 30,000 23,892 35,000 5,000 17%101-0000-42702 Vehicle Abatement 67,962 50,000 50,000 39,397 65,000 15,000 30%101-0000-42703 Vehicle Impound Fee 110,045 110,000 110,000 32,046 100,000 (10,000)-9%101-0000-42705 Motor Vehicle Code Fines 48,726 20,000 20,000 21,628 40,000 20,000 100%101-0000-42706 Parking Violations 941 1,000 1,000 8,678 8,000 7,000 700%101-0000-42707 Misc Fines 8,246 5,000 5,000 0 9,000 4,000 80%101-0000-42708 Graffiti Removal 0 10,000 10,000 16,132 15,000 5,000 50%101-0000-42709 False Alarm Fees - Police (600)3,000 3,000 6,804 5,000 2,000 67%101-0000-42710 False Alarm Fees - Fire 350 - Fines, Forfeitures & Abatements Totals:779,006 294,000 609,000 473,296 462,000 (147,000)-24% 360 - Use of Money & Property 897,509 400,000 400,000 (39,782)400,000 0 0%101-0000-41900 Allocated Interest (666,023)0 0 0 0 0 0%101-0000-41910 GASB 31 Interest 147,720 145,000 145,000 117,525 155,000 10,000 7%101-0000-42120 Lease Revenue 360 - Use of Money & Property Totals:379,206 545,000 545,000 77,743 555,000 10,000 2% 370 - Miscellaneous 419,472 400,000 400,000 592,525 400,000 0 0%101-0000-41410 Zoning Change Mitigation Fees 0 20,000 20,000 21,632 20,000 0 0%101-0000-41504 AMR Compliance 113,041 114,000 114,000 119,214 120,000 6,000 5%101-0000-41507 Burrtec Admin Cost Reimbursement 3,196 5,000 5,000 1,989 5,000 0 0%101-0000-42000 Insurance Recoveries 15 100 100 0 100 0 0%101-0000-42140 Sales of Publications & Materials 1,233 40,000 40,000 2,872 5,000 (35,000)-88%101-0000-42301 Miscellaneous Revenue 104,930 50,000 50,000 54,709 50,000 0 0%101-0000-42305 Miscellaneous Reimbursements 591,946 0 0 0 0 0 0%101-0000-48500 Extraordinary Gain 370 - Miscellaneous Totals:1,233,835 629,100 629,100 792,941 600,100 (29,000)-5% 65,446,835 58,804,210 65,392,532 44,571,514 67,821,100 2,428,568 4% 504,205 60,000 375,000 324,533 180,000 (195,000) 5,812 5,000 5,000 188 5,000 0 33,669 30,000 30,000 23,892 35,000 5,000 67,962 50,000 50,000 39,397 65,000 15,000 110,045 110,000 110,000 32,046 100,000 (10,000) 48,726 20,000 20,000 21,628 40,000 20,000 941 1,000 1,000 8,678 8,000 7,000 8,246 5,000 5,000 0 9,000 4,000 0 10,000 10,000 16,132 15,000 5,000 (600)3,000 3,000 6,804 5,000 2,000 779,006 294,000 609,000 473,296 462,000 (147,000) 897,509 400,000 400,000 (39,782)400,000 0 (666,023)0 0 0 0 0 147,720 145,000 145,000 117,525 155,000 10,000 379,206 545,000 545,000 77,743 555,000 10,000 419,472 400,000 400,000 592,525 400,000 0 0 20,000 20,000 21,632 20,000 0 113,041 114,000 114,000 119,214 120,000 6,000 3,196 5,000 5,000 1,989 5,000 0 15 100 100 0 100 0 1,233 40,000 40,000 2,872 5,000 (35,000) 104,930 50,000 50,000 54,709 50,000 0 591,946 0 0 0 0 0 1,233,835 629,100 629,100 792,941 600,100 (29,000) 65,446,835 58,804,210 65,392,532 44,571,514 67,821,100 2,428,568 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS FY 2022/23 PROPOSED BUDGET 5 Fund: 101 - GENERAL FUNDProperty Tax Revenue2,890,000.00101-0000-40310Property tax estimates are provided by HdL consulting services. Actual valuation changes due to the annual 2% Proposition 13 increase, as well as transfers of ownership are included, but completed new construction is not (unless the property was completed and sold in 2021). The City participates in the Teeter program, therefore no delinquencies are assumed. State Sales Tax11,000,000.00101-0000-41320Bradley Burns (local share of state sales tax) is 1% of the current sales tax rate (8.75%). HdL consulting services budget estimates are factored into projections along with reviews of industry and economic reports and local trends.Measure G Sales Tax13,500,000.00101-0000-41326Transaction and use sales tax is 1% of the current sales tax rate (8.75%) and is also known as Measure G. Online transactions, as well as big-ticket consumer goods delivered tolocal addresses drive this number. TOT - Hotels7,000,000.00101-0000-4140011% Transient occupancy tax for hotels. Leisure and hospitalitymake up 25% of the employment sector in the Coachella Valleyand the recovery is stronger than initially anticipated. With thereturn of large events, tourism-related revenue is expected to continue to increase. TOT - Short Term Vac. Rentals5,000,000.00101-0000-4140110% Transient occupancy tax for short-term vacation rentals(STVR). Consumer demand for STVRs continues to be strong.TOT - Bed and Breakfast100,000.00101-0000-41402CITY OF LA QUINTAGENERAL FUND BUDGET NOTESFY 2022/23 PROPOSED BUDGET10% Transient occupancy tax for bed and breakfast6 Zoning Change Mitigation Fees400,000.00101-0000-41410Fees are charged based on development agreements, wherebyformer commercial property was converted to housing developments and mitigation fees cover lost revenue from thechange in development type.STVR Registration Fee900,000.00101-0000-41415TOT - Resort Fees375,000.00101-0000-41416TOT levied on resort fees which are charged by some hotels. The City provides an annual incentive rebate program for hotels collecting TOT on resort fees. Rebate programs are budgeted in Centralized Services. Franchise Taxes - Burrtec1,000,000.00101-0000-41505Burrtec Franchise Fee is based on an agreement with the Cityand is adjusted annually on January 1st per a consumer priceindex. Burrtec Admin Cost Reimburse120,000.00101-0000-41507Base amount of $101,675 adjusted annually on January 1st by the change in the Consumer Price Index starting in June 2016 and ending on 6/30/2026.Property Tax in Lieu of VLF5,011,700.00101-0000-41800Property tax in lieu of vehicle license fee (VLF) is derived fromthe 2004 property tax swap whereby cities receive property taxallocation in lieu of VLF's. The VLF allocation can change annually based on the percent increase in property valuations.Allocated Interest400,000.00101-0000-41900CITY OF LA QUINTAGENERAL FUND BUDGET NOTESFY 2022/23 PROPOSED BUDGET7 Interest rates are anticipated to continue to increase throughout FY 2022/23 as the Federal Reserve is forecasted to raise rates in an attempt to curb inflation. Maturing securities will be reinvested at potentially higher rates and the Local Agency Investment Fund (LAIF) yield will rise as well. Leisure Enrichment35,000.00101-0000-42200Various leisure enrichment activity should continue to increaseas COVID risks and fears dissipate and people return to normalactivites. Wellness Center Memberships75,000.00101-0000-42218The Wellness Center membership renewals are anticipated toresume as members return to in-person activites.Fire Plan Review Fee65,000.00101-0000-42420Fire Plan reviews are conducted in-house by Riverside County Fire Inspectors. Fire Inspection Fee60,000.00101-0000-42421Fire Inspections are conducted in-house by Riverside CountyFire Inspectors. Appeals - Permits, Licenses, Pr3,000.00101-0000-42440Appeals for permits, licenses, and violations are captured inthis revenue line item. Fire Service Credit7,400,000.00101-0000-42500Property tax revenue restricted for fire services.False Alarm Fees - Police15,000.00101-0000-42709CITY OF LA QUINTAGENERAL FUND BUDGET NOTESFY 2022/23 PROPOSED BUDGET8 Fees are anticipated to resume after having been suspendedduring the pandemic.CSA 152 Assessments250,000.00101-0000-43633Annual revenue generated through property tax collection andheld by the County until reimbursements for qualified expenditures are submitted by the City. Contributions from Other Agen3,000.00101-0000-43650The approved Last and Final Recognized Obligation Payment Schedule (ROPS) includes an annual administrative fee reimbursement for the City to perform the wind down activitiesassociated with the former Redevelopment Agency. CITY OF LA QUINTAGENERAL FUND BUDGET NOTESFY 2022/23 PROPOSED BUDGET9 THIS PAGE INTENTIONALLY LEFT BLANK 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 1001 - City Council 50 - Salaries and Benefits 144,443 144,000 144,000 122,622 144,000 0 0%101-1001-50108 Salaries - Council Members 2,408 2,400 2,400 2,014 2,400 0 0%101-1001-50150 Other Compensation 9,621 9,600 9,600 8,092 9,600 0 0%101-1001-50200 PERS-City Portion 51,384 104,600 104,600 47,277 123,800 19,200 18%101-1001-50221 Medical Insurance 606 0 0 466 0 0 0%101-1001-50222 Vision Insurance 3,591 0 0 2,577 0 0 0%101-1001-50223 Dental Insurance 433 0 0 316 0 0 0%101-1001-50224 Life Insurance 10,100 10,500 10,500 7,875 10,500 0 0%101-1001-50230 Workers Comp Insurance 2,094 5,600 5,600 1,778 5,600 0 0%101-1001-50240 Social Security-Medicare 3,433 0 0 2,914 0 0 0%101-1001-50241 Social Security-FICA 50 - Salaries and Benefits Totals:228,115 276,700 276,700 195,931 295,900 19,200 7% 62 - Maintenance & Operations 0 10,000 10,000 7,779 40,000 30,000 300%101-1001-60137 Community Special Events 5,032 15,000 15,000 4,807 15,000 0 0%101-1001-60320 Travel & Training 391 500 500 283 500 0 0%101-1001-60420 Operating Supplies 62 - Maintenance & Operations Totals:5,423 25,500 25,500 12,868 55,500 30,000 118% 1001 - City Council Totals:233,538 302,200 302,200 208,799 351,400 49,200 16% 144,443 144,000 144,000 122,622 144,000 0 2,408 2,400 2,400 2,014 2,400 0 9,621 9,600 9,600 8,092 9,600 0 51,384 104,600 104,600 47,277 123,800 19,200 606 0 0 466 0 0 3,591 0 0 2,577 0 0 433 0 0 316 0 0 10,100 10,500 10,500 7,875 10,500 0 2,094 5,600 5,600 1,778 5,600 0 3,433 0 0 2,914 0 0 228,115 276,700 276,700 195,931 295,900 19,200 0 10,000 10,000 7,779 40,000 30,000 5,032 15,000 15,000 4,807 15,000 0 391 500 500 283 500 0 5,423 25,500 25,500 12,868 55,500 30,000 233,538 302,200 302,200 208,799 351,400 49,200 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 10 Department : 1001 - City CouncilCommunity Special Events40,000.00101-1001-60137Annual City open houseState of the City/City's 40th AnniversaryTravel & Training15,000.00101-1001-60320League of CA Cities- Annual conference and legislative action daysCouncil meeting expenses CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET11 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 1002 - City Manager 50 - Salaries and Benefits 366,162 375,700 375,700 333,501 404,940 29,240 8%101-1002-50101 Permanent Full Time 257 0 0 43 0 0 0%101-1002-50105 Salaries - Overtime 867 900 900 725 900 0 0%101-1002-50150 Other Compensation 26,385 32,300 32,300 23,966 33,900 1,600 5%101-1002-50200 PERS-City Portion 16,000 10,000 10,000 8,000 10,000 0 0%101-1002-50215 Other Fringe Benefits 42,257 62,800 62,800 43,144 74,300 11,500 18%101-1002-50221 Medical Insurance 526 0 0 444 0 0 0%101-1002-50222 Vision Insurance 2,718 0 0 2,675 0 0 0%101-1002-50223 Dental Insurance 145 0 0 145 0 0 0%101-1002-50224 Life Insurance 1,263 1,800 1,800 1,592 2,400 600 33%101-1002-50225 Long Term Disability 6,900 7,100 7,100 5,325 7,100 0 0%101-1002-50230 Workers Comp Insurance 5,425 5,500 5,500 4,952 5,800 300 5%101-1002-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:468,904 496,100 496,100 424,511 539,340 43,240 9% 60 - Contract Services 41,685 80,000 80,000 42,385 100,000 20,000 25%101-1002-60101 Contract Services - Administrative 2,344 20,000 20,000 40,237 45,000 25,000 125%101-1002-60103 Professional Services 60 - Contract Services Totals:44,029 100,000 100,000 82,622 145,000 45,000 45% 62 - Maintenance & Operations 228 6,000 6,000 3,146 6,000 0 0%101-1002-60320 Travel & Training 92,045 105,000 105,000 88,535 105,000 0 0%101-1002-60351 Membership Dues 0 2,000 2,000 825 2,000 0 0%101-1002-60352 Subscriptions & Publications 553 1,000 1,000 741 1,000 0 0%101-1002-60400 Office Supplies 56 1,000 1,000 870 1,000 0 0%101-1002-60420 Operating Supplies 62 - Maintenance & Operations Totals:92,882 115,000 115,000 94,118 115,000 0 0% 64 - Other Expenses 0 300,000 300,000 0 300,000 0 0%101-1002-60510 Contingency for Operations 64 - Other Expenses Totals:0 300,000 300,000 0 300,000 0 0% 69 - Internal Service Charges 63,700 64,900 64,900 48,675 78,200 13,300 20%101-1002-98110 Information Tech Charges 69 - Internal Service Charges Totals:63,700 64,900 64,900 48,675 78,200 13,300 20% 1002 - City Manager Totals:669,515 1,076,000 1,076,000 649,926 1,177,540 101,540 9% 366,162 375,700 375,700 333,501 404,940 29,240 257 0 0 43 0 0 867 900 900 725 900 0 26,385 32,300 32,300 23,966 33,900 1,600 16,000 10,000 10,000 8,000 10,000 0 42,257 62,800 62,800 43,144 74,300 11,500 526 0 0 444 0 0 2,718 0 0 2,675 0 0 145 0 0 145 0 0 1,263 1,800 1,800 1,592 2,400 600 6,900 7,100 7,100 5,325 7,100 0 5,425 5,500 5,500 4,952 5,800 300 468,904 496,100 496,100 424,511 539,340 43,240 41,685 80,000 80,000 42,385 100,000 20,000 2,344 20,000 20,000 40,237 45,000 25,000 44,029 100,000 100,000 82,622 145,000 45,000 228 6,000 6,000 3,146 6,000 0 92,045 105,000 105,000 88,535 105,000 0 0 2,000 2,000 825 2,000 0 553 1,000 1,000 741 1,000 0 56 1,000 1,000 870 1,000 0 92,882 115,000 115,000 94,118 115,000 0 0 300,000 300,000 0 300,000 0 0 300,000 300,000 0 300,000 0 63,700 64,900 64,900 48,675 78,200 13,300 63,700 64,900 64,900 48,675 78,200 13,300 669,515 1,076,000 1,076,000 649,926 1,177,540 101,540 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 12 Department : 1002 - City ManagerPermanent Full Time404,940.00101-1002-50101 80% - City Manager (20% Housing Fund) 60% - Assistant to City Manager (40% Housing Fund)100% - Management Specialist 40% - Management Specialist (60% Housing Fund) 20% - Management Assistant (80% Housing Fund)Contract Services - Administra100,000.00101-1002-60101Legislative lobbying servicesEconomic development servicesProfessional Services45,000.00101-1002-60103Title and appraisal services and property surveysWaste management for special eventsTravel & Training6,000.00101-1002-60320League of California Cities (LCC) Regional meetings & miscellaneous training such as:Coachella Valley Association of Governments (CVAG), California Cities/Counties Mgmt Foundation (CCMF), andSouthern CA Association of Governments (SCAG)Membership Dues105,000.00101-1002-60351International City/County Mgmt Association (ICMA)League of CA Cities (LCC) - RiversideCalifornia Cities/Counties Mgmt Foundation (CCMF)Coachella Valley Association of Governments (CVAG)National League of Cities (NLC)Southern CA Association of Governments (SCAG)Subscriptions & Publications2,000.00101-1002-60352CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGETProperty analysis and grant solutions 13 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 3007 - Marketing & Community Relations 50 - Salaries and Benefits 163,912 180,200 180,200 160,734 195,228 15,028 8%101-3007-50101 Permanent Full Time 183 0 0 0 0 0 0%101-3007-50105 Salaries - Overtime 12,391 14,000 14,000 11,421 14,300 300 2%101-3007-50200 PERS-City Portion 38,250 41,900 41,900 34,632 49,500 7,600 18%101-3007-50221 Medical Insurance 479 0 0 401 0 0 0%101-3007-50222 Vision Insurance 2,276 0 0 1,862 0 0 0%101-3007-50223 Dental Insurance 70 0 0 84 0 0 0%101-3007-50224 Life Insurance 746 1,000 1,000 817 1,300 300 30%101-3007-50225 Long Term Disability 4,100 4,200 4,200 3,150 4,200 0 0%101-3007-50230 Workers Comp Insurance 2,379 2,700 2,700 2,331 2,800 100 4%101-3007-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:224,786 244,000 244,000 215,432 267,328 23,328 10% 60 - Contract Services 0 10,000 10,000 0 70,000 60,000 600%101-3007-60134 Promotional Items 0 10,700 10,700 0 10,700 0 0%101-3007-60137 Community Engagement 223,963 213,400 313,400 316,225 323,500 10,100 3%101-3007-60151 VGPS - Visit Greater Palm Springs 60 - Contract Services Totals:223,963 234,100 334,100 316,225 404,200 70,100 21% 62 - Maintenance & Operations 3,910 8,000 8,000 4,851 8,000 0 0%101-3007-60320 Travel & Training 2,571 10,000 10,000 8,339 10,000 0 0%101-3007-60351 Membership Dues 4,472 15,000 15,000 7,753 20,000 5,000 33%101-3007-60410 Printing 1,557 1,600 1,600 919 1,600 0 0%101-3007-60420 Operating Supplies 8,000 25,000 25,000 18,261 25,000 0 0%101-3007-60450 Advertising 598,723 750,000 750,000 498,326 850,000 100,000 13%101-3007-60461 Marketing & Tourism Promotions 62 - Maintenance & Operations Totals:619,232 809,600 809,600 538,448 914,600 105,000 13% 69 - Internal Service Charges 37,500 38,200 38,200 28,650 46,000 7,800 20%101-3007-98110 Information Tech Charges 69 - Internal Service Charges Totals:37,500 38,200 38,200 28,650 46,000 7,800 20% 3007 - Marketing & Community Relations Totals:1,105,482 1,325,900 1,425,900 1,098,756 1,632,128 206,228 14% 163,912 180,200 180,200 160,734 195,228 15,028 183 0 0 0 0 0 12,391 14,000 14,000 11,421 14,300 300 38,250 41,900 41,900 34,632 49,500 7,600 479 0 0 401 0 0 2,276 0 0 1,862 0 0 70 0 0 84 0 0 746 1,000 1,000 817 1,300 300 4,100 4,200 4,200 3,150 4,200 0 2,379 2,700 2,700 2,331 2,800 100 224,786 244,000 244,000 215,432 267,328 23,328 0 10,000 10,000 0 70,000 60,000 0 10,700 10,700 0 10,700 0 223,963 213,400 313,400 316,225 323,500 10,100 223,963 234,100 334,100 316,225 404,200 70,100 3,910 8,000 8,000 4,851 8,000 0 2,571 10,000 10,000 8,339 10,000 0 4,472 15,000 15,000 7,753 20,000 5,000 1,557 1,600 1,600 919 1,600 0 8,000 25,000 25,000 18,261 25,000 0 598,723 750,000 750,000 498,326 850,000 100,000 619,232 809,600 809,600 538,448 914,600 105,000 37,500 38,200 38,200 28,650 46,000 7,800 37,500 38,200 38,200 28,650 46,000 7,800 1,105,482 1,325,900 1,425,900 1,098,756 1,632,128 206,228 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 14 Department : 3007 - Marketing & Community RelationsPermanent Full Time195,228.00101-3007-50101100% - Marketing Manager100% - Management SpecialistPromotional Items70,000.00101-3007-60134For community engagement and special eventsCommunity Engagement10,700.00101-3007-60137Community workshop and City eventsVGPS - Visit Greater Palm Spri323,500.00101-3007-60151Payment of transient occupancy tax (TOT) to the Greater PalmSprings Convention Visitors Bureau (GPSCVB) for a percentageall TOT revenue collected. To jointly encourage, promote, andattract visitors to the Coachella Valley. .0015 of gross rental revenue for non-convention TOT.0035 of gross rental revenue for convention TOTTravel & Training8,000.00101-3007-60320Visit CA - travel destination conferenceCalTravel - travel destination conferenceMembership Dues10,000.00101-3007-60351CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGETCoachella Valley Economic Partnership, CA Association of Public Information Officers, Cal Travel, Public Relations Society of America, Mail Chimp, and Ragan Communications15 Printing20,000.00101-3007-60410Citywide business cards, event signs and bannersAdvertising25,000.00101-3007-60450AmountNational Date Festival5,000Sponsorships - CVEP Summit, Modernism Week, etc20,000Marketing & Tourism Promotio850,000.00101-3007-60461Photography, Chamber of Commerce Contract, Video, Commercials, Marketing Contracts, Marketing Efforts, MusicLicensing, Palm Springs Life Vision, and State of the CityCITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET16 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 1003 - City Attorney 60 - Contract Services 391,348 546,000 646,000 207,840 646,000 0 0%101-1003-60153 Attorney 66,006 150,000 150,000 26,626 150,000 0 0%101-1003-60154 Attorney/Litigation 60 - Contract Services Totals:457,354 696,000 796,000 234,467 796,000 0 0% 1003 - City Attorney Totals:457,354 696,000 796,000 234,467 796,000 0 0% 391,348 546,000 646,000 207,840 646,000 0 66,006 150,000 150,000 26,626 150,000 0 457,354 696,000 796,000 234,467 796,000 0 457,354 696,000 796,000 234,467 796,000 0 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 17 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 1005 - City Clerk 50 - Salaries and Benefits 226,214 281,700 281,700 266,462 454,818 173,118 61%101-1005-50101 Permanent Full Time 618 0 0 50 0 0 0%101-1005-50105 Salaries - Overtime 735 500 500 779 500 0 0%101-1005-50150 Other Compensation 22,782 26,800 26,800 24,816 40,400 13,600 51%101-1005-50200 PERS-City Portion 57,627 81,600 81,600 55,088 146,000 64,400 79%101-1005-50221 Medical Insurance 791 0 0 607 0 0 0%101-1005-50222 Vision Insurance 3,137 0 0 2,438 0 0 0%101-1005-50223 Dental Insurance 109 0 0 174 0 0 0%101-1005-50224 Life Insurance 1,027 1,600 1,600 1,393 2,700 1,100 69%101-1005-50225 Long Term Disability 7,900 8,200 8,200 6,150 12,300 4,100 50%101-1005-50230 Workers Comp Insurance 3,604 4,200 4,200 4,137 6,500 2,300 55%101-1005-50240 Social Security-Medicare 509 0 0 1,020 0 0 0%101-1005-50241 Social Security-FICA 21,734 40,000 40,000 17,623 40,000 0 0%101-1005-50251 Temporary 50 - Salaries and Benefits Totals:346,786 444,600 444,600 380,737 703,218 258,618 58% 60 - Contract Services 62,728 90,000 90,000 26,585 345,000 255,000 283%101-1005-60103 Professional Services 0 0 0 11,533 40,000 40,000 0%101-1005-60125 Temporary Agency Services 60 - Contract Services Totals:62,728 90,000 90,000 38,118 385,000 295,000 328% 62 - Maintenance & Operations 2,076 7,000 7,000 4,303 15,000 8,000 114%101-1005-60320 Travel & Training 1,306 1,500 1,500 1,141 2,000 500 33%101-1005-60351 Membership Dues 1,822 2,500 2,500 809 2,500 0 0%101-1005-60400 Office Supplies 0 0 10,000 7,183 10,000 0 0%101-1005-60410 Printing 1,617 1,200 1,200 990 1,200 0 0%101-1005-60420 Operating Supplies 4,839 4,000 4,000 1,207 4,000 0 0%101-1005-60450 Advertising 62 - Maintenance & Operations Totals:11,660 16,200 26,200 15,634 34,700 8,500 32% 69 - Internal Service Charges 73,000 74,400 74,400 55,800 134,608 60,208 81%101-1005-98110 Information Tech Charges 69 - Internal Service Charges Totals:73,000 74,400 74,400 55,800 134,608 60,208 81% 1005 - City Clerk Totals:494,173 625,200 635,200 490,290 1,257,526 622,326 98% 226,214 281,700 281,700 266,462 454,818 173,118 618 0 0 50 0 0 735 500 500 779 500 0 22,782 26,800 26,800 24,816 40,400 13,600 57,627 81,600 81,600 55,088 146,000 64,400 791 0 0 607 0 0 3,137 0 0 2,438 0 0 109 0 0 174 0 0 1,027 1,600 1,600 1,393 2,700 1,100 7,900 8,200 8,200 6,150 12,300 4,100 3,604 4,200 4,200 4,137 6,500 2,300 509 0 0 1,020 0 0 21,734 40,000 40,000 17,623 40,000 0 346,786 444,600 444,600 380,737 703,218 258,618 62,728 90,000 90,000 26,585 345,000 255,000 0 0 0 11,533 40,000 40,000 62,728 90,000 90,000 38,118 385,000 295,000 2,076 7,000 7,000 4,303 15,000 8,000 1,306 1,500 1,500 1,141 2,000 500 1,822 2,500 2,500 809 2,500 0 0 0 10,000 7,183 10,000 0 1,617 1,200 1,200 990 1,200 0 4,839 4,000 4,000 1,207 4,000 0 11,660 16,200 26,200 15,634 34,700 8,500 73,000 74,400 74,400 55,800 134,608 60,208 73,000 74,400 74,400 55,800 134,608 60,208 494,173 625,200 635,200 490,290 1,257,526 622,326 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 18 Department : 1005 - City ClerkPermanent Full Time454,818.00101-1005-50101 90% - City Clerk (10% Housing)100% - Deputy City Clerk100% - Management Assistant 100% - Administrative Assistant100% - Permit Technicians (2, New in FY 22/23)Professional Services345,000.00101-1005-60103Municipal Code text and online updatesImaging scanning servicesFor The Record tech support (DSS Corp)DigiCert electronic signaturesCtiywide fee study updatesRecords legislation, requirements, minute writing services, and retention updatesSTVR Programming Compliance, Analytics & Permitting SoftwareTemporary Agency Services40,000.00101-1005-60125To provide staffing resources while vacancies are filled and permanent staff is trainedTravel & Training15,000.00101-1005-60320CA City Clerks Association annual conference & seminarsMunicipal Clerks certifications and training Membership Dues2,000.00101-1005-60351California City Clerks Association (CCAC)- 4 employeesNational Notary Association Errors and Omission insurance (E&O)- 3 employees International Institute of Municipal Clerks (IIMC) membershipPrinting10,000.00Advertising4,000.00101-1005-60410101-1005-60450Public hearing notices, Commission and Board vacanciesCITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET19 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 1004 - Human Resources 50 - Salaries and Benefits 92,440 96,400 111,400 85,897 168,198 56,798 51%101-1004-50101 Permanent Full Time 34,995 36,300 36,300 31,692 0 (36,300)-100%101-1004-50102 Salaries - Part Time 277 0 0 403 0 0 0%101-1004-50150 Other Compensation 9,648 7,500 7,500 8,699 12,400 4,900 65%101-1004-50200 PERS-City Portion 5,670 21,000 21,000 5,392 49,500 28,500 136%101-1004-50221 Medical Insurance 287 0 0 234 0 0 0%101-1004-50222 Vision Insurance 1,631 0 0 1,348 0 0 0%101-1004-50223 Dental Insurance 35 0 0 44 0 0 0%101-1004-50224 Life Insurance 421 600 600 460 1,100 500 83%101-1004-50225 Long Term Disability 2,100 2,100 2,100 1,575 4,200 2,100 100%101-1004-50230 Workers Comp Insurance 1,891 1,500 1,500 1,744 2,400 900 60%101-1004-50240 Social Security-Medicare 0 0 0 12 0 0 0%101-1004-50241 Social Security-FICA 0 0 0 198 0 0 0%101-1004-50251 Temporary 0 17,600 17,600 3,214 18,000 400 2%101-1004-50252 Annual Wellness Dollar Reimbursement 50 - Salaries and Benefits Totals:149,396 183,000 198,000 140,911 255,798 57,798 29% 60 - Contract Services 0 70,000 70,000 10,101 70,000 0 0%101-1004-60103 Professional Services 9,906 20,000 20,000 7,650 20,000 0 0%101-1004-60104 Consultants/Employee Services 60 - Contract Services Totals:9,906 90,000 90,000 17,752 90,000 0 0% 62 - Maintenance & Operations 5,046 10,000 30,000 13,044 30,000 0 0%101-1004-60129 Recruiting/Pre-Employment 27 4,000 4,000 (113)4,000 0 0%101-1004-60320 Travel & Training 16,183 52,000 52,000 6,292 52,000 0 0%101-1004-60322 Training & Education/MOU 7,557 9,000 9,000 12,069 9,000 0 0%101-1004-60340 Employee Recognition Events 6,785 6,500 6,500 6,500 6,500 0 0%101-1004-60351 Membership Dues 839 900 900 239 900 0 0%101-1004-60352 Subscriptions & Publications 342 500 500 217 500 0 0%101-1004-60400 Office Supplies 370 1,000 1,000 0 1,000 0 0%101-1004-60420 Operating Supplies 62 - Maintenance & Operations Totals:37,150 83,900 103,900 38,248 103,900 0 0% 69 - Internal Service Charges 18,800 19,100 19,100 14,325 46,000 26,900 141%101-1004-98110 Information Tech Charges 69 - Internal Service Charges Totals:18,800 19,100 19,100 14,325 46,000 26,900 141% 1004 - Human Resources Totals:215,251 376,000 411,000 211,236 495,698 84,698 21% 92,440 96,400 111,400 85,897 168,198 56,798 34,995 36,300 36,300 31,692 0 (36,300) 277 0 0 403 0 0 9,648 7,500 7,500 8,699 12,400 4,900 5,670 21,000 21,000 5,392 49,500 28,500 287 0 0 234 0 0 1,631 0 0 1,348 0 0 35 0 0 44 0 0 421 600 600 460 1,100 500 2,100 2,100 2,100 1,575 4,200 2,100 1,891 1,500 1,500 1,744 2,400 900 0 0 0 12 0 0 0 0 0 198 0 0 0 17,600 17,600 3,214 18,000 400 149,396 183,000 198,000 140,911 255,798 57,798 0 70,000 70,000 10,101 70,000 0 9,906 20,000 20,000 7,650 20,000 0 9,906 90,000 90,000 17,752 90,000 0 5,046 10,000 30,000 13,044 30,000 0 27 4,000 4,000 (113)4,000 0 16,183 52,000 52,000 6,292 52,000 0 7,557 9,000 9,000 12,069 9,000 0 6,785 6,500 6,500 6,500 6,500 0 839 900 900 239 900 0 342 500 500 217 500 0 370 1,000 1,000 0 1,000 0 37,150 83,900 103,900 38,248 103,900 0 18,800 19,100 19,100 14,325 46,000 26,900 18,800 19,100 19,100 14,325 46,000 26,900 215,251 376,000 411,000 211,236 495,698 84,698 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 20 Department : 1004 - Human ResourcesPermanent Full Time168,198.00101-1004-50101100% - Human Resources Analyst100% - Adminstrative TechnicianProfessional Services70,000.00101-1004-60103Citywide employee development programs Consultants/Employee Service20,000.00101-1004-60104Employee Assistance Program (EAP)- Wellness WorksCalPERS- Monthly medical premium and administration feesTAG/AMS DOT random screeningsDMV medical exams (Class B)Bilingual TestingRecruiting/Pre-Employment30,000.00101-1004-60129Interview panel costsFingerprintingPhysicals and drug screeningsBackground checksTravel & Training4,000.00101-1004-60320Liebert Cassidy Whitmore (LCW)- law & labor relationsEducational forums and miscellaneous trainingMembership Dues6,500.00101-1004-60351CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGETSociety of HR Management (SHRM)Professionals in HR Association (PIHRA)International Public Management Association for HR (IPMA-HR),World at Work (WOW)CV Employment Relations Consortium (LCW)CA Public Employers Labor Relations Assoc. (CalPELRA)Subscriptions & Publications900.00101-1004-60352Labor law compliance posters21 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 2001 - Police 60 - Contract Services 26,708 40,000 40,000 394 50,000 10,000 25%101-2001-60103 Professional Services 5,129 10,000 10,000 9,333 12,000 2,000 20%101-2001-60109 LQ Police Volunteers 9,562,657 9,890,000 9,890,000 6,431,588 10,070,000 180,000 2%101-2001-60161 Sheriff Patrol 296,155 485,000 485,000 217,953 485,000 0 0%101-2001-60162 Police Overtime 1,737,555 1,855,000 1,855,000 1,212,308 1,896,000 41,000 2%101-2001-60163 Target Team 759,638 818,000 818,000 513,640 836,000 18,000 2%101-2001-60164 Community Services Officer 24,373 100,000 100,000 89,110 100,000 0 0%101-2001-60165 Special Enforcement/City Special Events 199,783 209,500 209,500 76,472 214,000 4,500 2%101-2001-60166 Gang Task Force 199,783 209,500 209,500 137,650 214,000 4,500 2%101-2001-60167 Narcotics Task Force 29,729 202,000 202,000 106,359 230,000 28,000 14%101-2001-60168 School Officer 1,687,298 1,863,000 1,863,000 1,181,342 1,900,000 37,000 2%101-2001-60169 Motor Officer 533,360 573,000 573,000 369,287 579,000 6,000 1%101-2001-60170 Dedicated Sargeants 305,307 320,000 320,000 210,456 327,000 7,000 2%101-2001-60171 Dedicated Lieutenant 404,846 423,000 423,000 259,043 450,000 27,000 6%101-2001-60172 Sheriff - Mileage 0 18,000 18,000 0 18,000 0 0%101-2001-60173 Booking Fees 36,456 30,000 30,000 22,194 30,000 0 0%101-2001-60174 Blood/Alcohol Testing 70,600 95,000 95,000 48,327 95,000 0 0%101-2001-60175 Special Enforcement Funds 511,246 557,000 557,000 51,149 557,000 0 0%101-2001-60176 Sheriff - Other 5,322 8,000 8,000 6,631 9,000 1,000 13%101-2001-60193 Sexual Assault Exam Fees 60 - Contract Services Totals:16,395,945 17,706,000 17,706,000 10,943,234 18,072,000 366,000 2% 62 - Maintenance & Operations 5,640 5,000 5,000 0 5,000 0 0%101-2001-60320 Travel & Training 8,954 13,000 13,000 5,429 13,000 0 0%101-2001-60420 Operating Supplies 62 - Maintenance & Operations Totals:14,594 18,000 18,000 5,429 18,000 0 0% 66 - Utilities 13,187 14,000 14,000 8,763 15,000 1,000 7%101-2001-61300 Telephone - Utilities 1,781 6,000 6,000 1,140 6,000 0 0%101-2001-61400 Cable/Internet - Utilities 66 - Utilities Totals:14,968 20,000 20,000 9,903 21,000 1,000 5% 68 - Capital Expenses 0 50,000 60,000 0 0 (60,000)-100%101-2001-71031 Vehicles 68 - Capital Expenses Totals:0 50,000 60,000 0 0 (60,000)-100% 69 - Internal Service Charges 10,000 10,000 10,000 7,500 10,000 0 0%101-2001-98110 Information Tech Charges 44,400 51,100 51,100 38,325 64,900 13,800 27%101-2001-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:54,400 61,100 61,100 45,825 74,900 13,800 23% 2001 - Police Totals:16,479,907 17,855,100 17,865,100 11,004,391 18,185,900 320,800 2% 26,708 40,000 40,000 394 50,000 10,000 5,129 10,000 10,000 9,333 12,000 2,000 9,562,657 9,890,000 9,890,000 6,431,588 10,070,000 180,000 296,155 485,000 485,000 217,953 485,000 0 1,737,555 1,855,000 1,855,000 1,212,308 1,896,000 41,000 759,638 818,000 818,000 513,640 836,000 18,000 24,373 100,000 100,000 89,110 100,000 0 199,783 209,500 209,500 76,472 214,000 4,500 199,783 209,500 209,500 137,650 214,000 4,500 29,729 202,000 202,000 106,359 230,000 28,000 1,687,298 1,863,000 1,863,000 1,181,342 1,900,000 37,000 533,360 573,000 573,000 369,287 579,000 6,000 305,307 320,000 320,000 210,456 327,000 7,000 404,846 423,000 423,000 259,043 450,000 27,000 0 18,000 18,000 0 18,000 0 36,456 30,000 30,000 22,194 30,000 0 70,600 95,000 95,000 48,327 95,000 0 511,246 557,000 557,000 51,149 557,000 0 5,322 8,000 8,000 6,631 9,000 1,000 16,395,945 17,706,000 17,706,000 10,943,234 18,072,000 366,000 5,640 5,000 5,000 0 5,000 0 8,954 13,000 13,000 5,429 13,000 0 14,594 18,000 18,000 5,429 18,000 0 13,187 14,000 14,000 8,763 15,000 1,000 1,781 6,000 6,000 1,140 6,000 0 14,968 20,000 20,000 9,903 21,000 1,000 0 50,000 60,000 0 0 (60,000) 0 50,000 60,000 0 0 (60,000) 10,000 10,000 10,000 7,500 10,000 0 44,400 51,100 51,100 38,325 64,900 13,800 54,400 61,100 61,100 45,825 74,900 13,800 16,479,907 17,855,100 17,865,100 11,004,391 18,185,900 320,800 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 22 Department : 2001 - PoliceProfessional Services50,000.00101-2001-60103Annual Police Matrix StudySheriff Patrol10,070,000.00101-2001-60161Increases for Police services in FY 2022/23 are attributed to rising labor and pension costs. Daily patrol hours (130) and service levels are incorporated. The contract funds the following positions: 1 Lieutenant, 2 Sergeants, 2 Motor Traffic Officers, 3 Traffic Officers, 5 Special Enforcement Team Officers, 2 Deputy Sheriff Officers, and 6 Community Service OfficersTravel & Training5,000.00101-2001-60320Crime prevention officers will provide training to the Citizens onPatrol. CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET23 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 2002 - Fire 50 - Salaries and Benefits 193,613 204,500 204,500 143,418 197,472 (7,028)-3%101-2002-50101 Permanent Full Time 0 4,000 4,000 599 4,000 0 0%101-2002-50105 Salaries - Overtime 96 100 100 81 100 0 0%101-2002-50150 Other Compensation 14,937 16,100 16,100 10,426 14,800 (1,300)-8%101-2002-50200 PERS-City Portion 48,086 53,400 53,400 37,607 63,100 9,700 18%101-2002-50221 Medical Insurance 637 0 0 459 0 0 0%101-2002-50222 Vision Insurance 2,778 0 0 1,742 0 0 0%101-2002-50223 Dental Insurance 97 0 0 97 0 0 0%101-2002-50224 Life Insurance 853 2,000 2,000 675 2,500 500 25%101-2002-50225 Long Term Disability 5,200 5,400 5,400 4,050 5,400 0 0%101-2002-50230 Workers Comp Insurance 2,827 3,100 3,100 2,408 2,900 (200)-6%101-2002-50240 Social Security-Medicare 82 0 0 1,290 0 0 0%101-2002-50241 Social Security-FICA 1,326 0 0 21,905 0 0 0%101-2002-50251 Temporary 50 - Salaries and Benefits Totals:270,532 288,600 288,600 224,756 290,272 1,672 1% 60 - Contract Services 22,450 15,000 15,000 0 15,000 0 0%101-2002-60103 Professional Services 0 3,000 3,000 0 4,000 1,000 33%101-2002-60110 Volunteers - Fire 14,909 15,800 15,800 13,045 19,000 3,200 20%101-2002-60112 Landscape Contract 3,063 2,500 2,500 2,782 3,500 1,000 40%101-2002-60116 Pest Control 1,530 1,500 1,500 0 1,500 0 0%101-2002-60123 Security & Alarm 5,902,289 6,620,200 6,620,200 0 7,725,000 1,104,800 17%101-2002-60139 Fire Service Costs 210,918 250,000 250,000 0 275,000 25,000 10%101-2002-60140 MOU - Ladder Truck 9,525 80,000 80,000 0 80,000 0 0%101-2002-60525 Golf Tournament 60 - Contract Services Totals:6,164,684 6,988,000 6,988,000 15,827 8,123,000 1,135,000 16% 62 - Maintenance & Operations 214 3,000 3,000 1,066 4,000 1,000 33%101-2002-60320 Travel & Training 0 100 100 0 1,000 900 900%101-2002-60351 Membership Dues 55 1,000 1,000 0 1,000 0 0%101-2002-60400 Office Supplies 4,423 6,000 6,000 6,095 6,000 0 0%101-2002-60406 Disaster Prep Supplies 187 500 500 0 500 0 0%101-2002-60410 Printing 6,522 20,000 20,000 23,605 20,000 0 0%101-2002-60445 Non-Reimbursable Misc 1,522 2,500 2,500 391 2,500 0 0%101-2002-60545 Small Tools & Equipment 6,566 50,000 50,000 8,311 50,000 0 0%101-2002-60670 Fire Station 1,750 5,000 5,000 658 5,000 0 0%101-2002-60671 Repair & Maintenance - EOC 30,086 60,000 60,000 47,635 60,000 0 0%101-2002-60691 Maintenance/Services 62 - Maintenance & Operations Totals:51,326 148,100 148,100 87,761 150,000 1,900 1% 66 - Utilities 1,399 1,500 1,500 1,704 2,000 500 33%101-2002-61100 Gas - Utilities 27,182 26,000 26,000 27,730 30,000 4,000 15%101-2002-61101 Electricity - Utilities 12,005 15,000 15,000 8,570 15,000 0 0%101-2002-61200 Water - Utilities 18,775 16,000 16,000 17,469 19,000 3,000 19%101-2002-61300 Telephone - Utilities 4,813 7,000 7,000 4,171 7,000 0 0%101-2002-61304 Mobile/Cell Phones/Satellites 6,378 6,000 6,000 10,819 14,000 8,000 133%101-2002-61400 Cable/Internet - Utilities 66 - Utilities Totals:70,552 71,500 71,500 70,464 87,000 15,500 22% 193,613 204,500 204,500 143,418 197,472 (7,028) 0 4,000 4,000 599 4,000 0 96 100 100 81 100 0 14,937 16,100 16,100 10,426 14,800 (1,300) 48,086 53,400 53,400 37,607 63,100 9,700 637 0 0 459 0 0 2,778 0 0 1,742 0 0 97 0 0 97 0 0 853 2,000 2,000 675 2,500 500 5,200 5,400 5,400 4,050 5,400 0 2,827 3,100 3,100 2,408 2,900 (200) 82 0 0 1,290 0 0 1,326 0 0 21,905 0 0 270,532 288,600 288,600 224,756 290,272 1,672 22,450 15,000 15,000 0 15,000 0 0 3,000 3,000 0 4,000 1,000 14,909 15,800 15,800 13,045 19,000 3,200 3,063 2,500 2,500 2,782 3,500 1,000 1,530 1,500 1,500 0 1,500 0 5,902,289 6,620,200 6,620,200 0 7,725,000 1,104,800 210,918 250,000 250,000 0 275,000 25,000 9,525 80,000 80,000 0 80,000 0 6,164,684 6,988,000 6,988,000 15,827 8,123,000 1,135,000 214 3,000 3,000 1,066 4,000 1,000 0 100 100 0 1,000 900 55 1,000 1,000 0 1,000 0 4,423 6,000 6,000 6,095 6,000 0 187 500 500 0 500 0 6,522 20,000 20,000 23,605 20,000 0 1,522 2,500 2,500 391 2,500 0 6,566 50,000 50,000 8,311 50,000 0 1,750 5,000 5,000 658 5,000 0 30,086 60,000 60,000 47,635 60,000 0 51,326 148,100 148,100 87,761 150,000 1,900 1,399 1,500 1,500 1,704 2,000 500 27,182 26,000 26,000 27,730 30,000 4,000 12,005 15,000 15,000 8,570 15,000 0 18,775 16,000 16,000 17,469 19,000 3,000 4,813 7,000 7,000 4,171 7,000 0 6,378 6,000 6,000 10,819 14,000 8,000 70,552 71,500 71,500 70,464 87,000 15,500 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 24 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 68 - Capital Expenses 0 5,000 5,000 0 5,000 0 0%101-2002-71021 Furniture 52,230 0 60,000 15,249 0 (60,000)-100%101-2002-71031 Vehicles 0 10,000 10,000 0 10,000 0 0%101-2002-72110 Building Improvements 5,242 30,000 498,000 76,054 0 (498,000)-100%101-2002-80101 Machinery & Equipment 68 - Capital Expenses Totals:57,472 45,000 573,000 91,304 15,000 (558,000)-97% 69 - Internal Service Charges 5,000 5,800 5,800 4,350 5,800 0 0%101-2002-91843 Property & Crime Insurance 13,000 14,000 14,000 10,500 14,000 0 0%101-2002-91844 Earthquake Insurance 47,800 48,700 48,700 36,525 58,700 10,000 21%101-2002-98110 Information Tech Charges 44,400 51,100 51,100 38,325 108,100 57,000 112%101-2002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:110,200 119,600 119,600 89,700 186,600 67,000 56% 99 - Transfers Out 313,037 0 361,686 307,498 0 (361,686)-100%101-2002-99900 Transfers Out 99 - Transfers Out Totals:313,037 0 361,686 307,498 0 (361,686)-100% 2002 - Fire Totals:7,037,802 7,660,800 8,550,486 887,310 8,851,872 301,386 4% 0 5,000 5,000 0 5,000 0 52,230 0 60,000 15,249 0 (60,000) 0 10,000 10,000 0 10,000 0 5,242 30,000 498,000 76,054 0 (498,000) 57,472 45,000 573,000 91,304 15,000 (558,000) 5,000 5,800 5,800 4,350 5,800 0 13,000 14,000 14,000 10,500 14,000 0 47,800 48,700 48,700 36,525 58,700 10,000 44,400 51,100 51,100 38,325 108,100 57,000 110,200 119,600 119,600 89,700 186,600 67,000 313,037 0 361,686 307,498 0 (361,686) 313,037 0 361,686 307,498 0 (361,686) 7,037,802 7,660,800 8,550,486 887,310 8,851,872 301,386 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 25 Department : 2002 - FirePermanent Full Time197,472.00101-2002-50101100% - Senior Emergency Management Coordinator100% - Administrative Assistant 15% - Community Resources Director (70% CommunityResources Admin, 15% Library & Museum Fund) 20% - Public Safety Manager (80% Community ResourcesAdmin) 20% - Administrative Technician (80% Code Compliance)Professional Services15,000.00101-2002-60103Public safety announcements and Nixle contractLandscape Contract19,000.00101-2002-60112Landscaping maintenance services for all three fire stationsFire Service Costs7,725,000.00101-2002-60139Increase in Fire Services in FY 2022/23 are attributed to rising labor and pension costs. Contracted with Riverside County and include the following: Captain, Medic Engineers, Engineers, Fire Fighter II Medics, Fire Fighter II, Fire Safety Specialist, Fire Systems Inspector, Overhead/Administration & Direct Operating Expenses, Medic Unit Operating Costs and Fire Engine ChargesTravel & Training4,000.00101-2002-60320Emergency preparedness citywide training National Emergency Management AcademyMembership Dues1,000.00101-2002-60351Journal of Emergency Management (JEM) subscriptionInternational Association of Emergency Managers (IAEM)Printing500.00101-2002-60410CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGETUpdate Emergency Operations Center forms26 Maintenance/Services60,000.00101-2002-60691Painting plus regular annual maintenance for each stationFurniture5,000.00101-2002-71021Emergency Operations Center tables, chairs, and desksCITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET27 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 3001 - Community Resources Administration 50 - Salaries and Benefits 387,412 393,500 393,500 337,088 406,980 13,480 3%101-3001-50101 Permanent Full Time 1,800 4,500 4,500 3,375 4,500 0 0%101-3001-50110 Commissions & Boards 485 400 400 322 400 0 0%101-3001-50150 Other Compensation 31,264 34,000 34,000 27,820 33,700 (300)-1%101-3001-50200 PERS-City Portion 55,327 73,200 73,200 51,303 86,700 13,500 18%101-3001-50221 Medical Insurance 773 0 0 637 0 0 0%101-3001-50222 Vision Insurance 3,383 0 0 3,023 0 0 0%101-3001-50223 Dental Insurance 156 0 0 167 0 0 0%101-3001-50224 Life Insurance 1,489 2,100 2,100 1,705 800 (1,300)-62%101-3001-50225 Long Term Disability 7,100 7,400 7,400 5,550 7,300 (100)-1%101-3001-50230 Workers Comp Insurance 5,644 5,800 5,800 4,937 5,800 0 0%101-3001-50240 Social Security-Medicare 112 0 0 209 0 0 0%101-3001-50241 Social Security-FICA 50 - Salaries and Benefits Totals:494,944 520,900 520,900 436,137 546,180 25,280 5% 60 - Contract Services 10,000 25,000 25,000 25,000 25,000 0 0%101-3001-60101 Contract Services 1,371 7,000 7,000 2,161 7,000 0 0%101-3001-60122 Credit Card Fees 1,275 40,000 60,000 10,000 60,000 0 0%101-3001-60135 Boys & Girls Club 60 - Contract Services Totals:12,646 72,000 92,000 37,161 92,000 0 0% 62 - Maintenance & Operations 0 3,000 3,000 0 3,000 0 0%101-3001-60157 Rent Expense 3,930 4,000 4,000 236 4,000 0 0%101-3001-60320 Travel & Training 0 300 300 5 300 0 0%101-3001-60351 Membership Dues 92 1,500 1,500 77 1,500 0 0%101-3001-60400 Office Supplies 117,800 135,000 135,000 29,000 135,000 0 0%101-3001-60510 Grants & Economic Development/Marketing 4,871 2,000 2,000 0 15,000 13,000 650%101-3001-60527 2-1-1 Hotline 0 3,000 3,000 0 3,000 0 0%101-3001-60531 Homeless Bus Passes 62 - Maintenance & Operations Totals:126,692 148,800 148,800 29,318 161,800 13,000 9% 69 - Internal Service Charges 65,500 66,800 66,800 50,100 80,500 13,700 21%101-3001-98110 Information Tech Charges 69 - Internal Service Charges Totals:65,500 66,800 66,800 50,100 80,500 13,700 21% 3001 - Community Resources Administration Totals:699,783 808,500 828,500 552,715 880,480 51,980 6% 387,412 393,500 393,500 337,088 406,980 13,480 1,800 4,500 4,500 3,375 4,500 0 485 400 400 322 400 0 31,264 34,000 34,000 27,820 33,700 (300) 55,327 73,200 73,200 51,303 86,700 13,500 773 0 0 637 0 0 3,383 0 0 3,023 0 0 156 0 0 167 0 0 1,489 2,100 2,100 1,705 800 (1,300) 7,100 7,400 7,400 5,550 7,300 (100) 5,644 5,800 5,800 4,937 5,800 0 112 0 0 209 0 0 494,944 520,900 520,900 436,137 546,180 25,280 10,000 25,000 25,000 25,000 25,000 0 1,371 7,000 7,000 2,161 7,000 0 1,275 40,000 60,000 10,000 60,000 0 12,646 72,000 92,000 37,161 92,000 0 0 3,000 3,000 0 3,000 0 3,930 4,000 4,000 236 4,000 0 0 300 300 5 300 0 92 1,500 1,500 77 1,500 0 117,800 135,000 135,000 29,000 135,000 0 4,871 2,000 2,000 0 15,000 13,000 0 3,000 3,000 0 3,000 0 126,692 148,800 148,800 29,318 161,800 13,000 65,500 66,800 66,800 50,100 80,500 13,700 65,500 66,800 66,800 50,100 80,500 13,700 699,783 808,500 828,500 552,715 880,480 51,980 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 28 Department : 3001 - Community Resources AdministrationPermanent Full Time406,980.00101-3001-5010170% - Community Resources Director (15% Fire, 15% Library & Museum Fund)80% - Public Safety Manager (20% Fire)40% - Community Resources Manager (40% Wellness Center Operations, 20% Library & Museum Fund)80% - Community Resources Analyst (20% Library & Museum Fund)80% - Administrative Technician (20% Library & Museum Fund)Contract Services25,000.00101-3001-60101Full restoration of Old Towne Artisan Studio wellness westpartnership to be restored. Rent Expense3,000.00101-3001-60157YMCA leaseTravel & Training4,000.00101-3001-60320Leadership trainingMembership Dues300.00101-3001-60351Engaging Local Government Leaders (ELGL)International City/County Management Association (ICMA)Grants & Economic Developme135,000.00101-3001-60510$60,000 for Community Services Grants are administered per City Policy and selected via a Grant Ad Hoc Commitee. $75,000for food distribution and other social service programs. CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET29 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 3002 - Wellness Center Operations 50 - Salaries and Benefits 218,489 233,900 233,900 202,881 250,002 16,102 7%101-3002-50101 Permanent Full Time 61,438 69,400 69,400 104,310 105,900 36,500 53%101-3002-50102 Salaries - Part Time 1,228 1,000 1,000 806 1,000 0 0%101-3002-50150 Other Compensation 25,007 23,800 23,800 23,671 24,400 600 3%101-3002-50200 PERS-City Portion 49,410 71,100 71,100 45,906 84,200 13,100 18%101-3002-50221 Medical Insurance 901 0 0 756 0 0 0%101-3002-50222 Vision Insurance 4,155 0 0 3,922 0 0 0%101-3002-50223 Dental Insurance 119 0 0 148 0 0 0%101-3002-50224 Life Insurance 1,006 1,400 1,400 1,103 1,300 (100)-7%101-3002-50225 Long Term Disability 6,900 7,100 7,100 5,325 7,100 0 0%101-3002-50230 Workers Comp Insurance 4,103 3,500 3,500 4,512 3,600 100 3%101-3002-50240 Social Security-Medicare 1,318 0 0 4,709 0 0 0%101-3002-50241 Social Security-FICA 0 0 30,000 1,492 0 (30,000)-100%101-3002-50251 Temporary 50 - Salaries and Benefits Totals:374,073 411,200 441,200 399,541 477,502 36,302 8% 60 - Contract Services 0 5,000 5,000 0 5,000 0 0%101-3002-60103 Professional Services 13,875 40,000 40,000 16,963 40,000 0 0%101-3002-60107 Instructors 0 3,000 3,000 3,000 3,000 0 0%101-3002-60108 Technical 60 - Contract Services Totals:13,875 48,000 48,000 19,963 48,000 0 0% 62 - Maintenance & Operations 0 3,000 3,000 2,814 3,000 0 0%101-3002-60157 Rental Expense 256 1,000 1,000 0 1,000 0 0%101-3002-60320 Travel & Training 1,515 3,000 3,000 1,014 3,000 0 0%101-3002-60351 Membership Dues 509 700 700 0 700 0 0%101-3002-60352 Subscriptions & Publications 18 3,000 3,000 447 3,000 0 0%101-3002-60400 Office Supplies 26,820 45,000 45,000 18,464 45,000 0 0%101-3002-60420 Operating Supplies 0 1,000 1,000 0 1,000 0 0%101-3002-60432 Tools/Equipment 62 - Maintenance & Operations Totals:29,119 56,700 56,700 22,738 56,700 0 0% 69 - Internal Service Charges 63,700 64,900 64,900 48,675 78,200 13,300 20%101-3002-98110 Information Tech Charges 14,800 17,100 17,100 12,825 21,700 4,600 27%101-3002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:78,500 82,000 82,000 61,500 99,900 17,900 22% 3002 - Wellness Center Operations Totals:495,568 597,900 627,900 503,742 682,102 54,202 9% 218,489 233,900 233,900 202,881 250,002 16,102 61,438 69,400 69,400 104,310 105,900 36,500 1,228 1,000 1,000 806 1,000 0 25,007 23,800 23,800 23,671 24,400 600 49,410 71,100 71,100 45,906 84,200 13,100 901 0 0 756 0 0 4,155 0 0 3,922 0 0 119 0 0 148 0 0 1,006 1,400 1,400 1,103 1,300 (100) 6,900 7,100 7,100 5,325 7,100 0 4,103 3,500 3,500 4,512 3,600 100 1,318 0 0 4,709 0 0 0 0 30,000 1,492 0 (30,000) 374,073 411,200 441,200 399,541 477,502 36,302 0 5,000 5,000 0 5,000 0 13,875 40,000 40,000 16,963 40,000 0 0 3,000 3,000 3,000 3,000 0 13,875 48,000 48,000 19,963 48,000 0 0 3,000 3,000 2,814 3,000 0 256 1,000 1,000 0 1,000 0 1,515 3,000 3,000 1,014 3,000 0 509 700 700 0 700 0 18 3,000 3,000 447 3,000 0 26,820 45,000 45,000 18,464 45,000 0 0 1,000 1,000 0 1,000 0 29,119 56,700 56,700 22,738 56,700 0 63,700 64,900 64,900 48,675 78,200 13,300 14,800 17,100 17,100 12,825 21,700 4,600 78,500 82,000 82,000 61,500 99,900 17,900 495,568 597,900 627,900 503,742 682,102 54,202 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 30 Department : 3002 - Wellness Center OperationsPermanent Full Time250,002.00101-3002-50101 40% - Community Resources Manager (40% CommunityResources Administration, 20% Library & Museum Fund)100% - Community Resources Specialist100% - Community Resources Coordinator100% - Administrative Assistant Salaries - Part Time105,900.00101-3002-5010250% Senior Recreation Leader (2) (50% Recreation Programs & Special Events)50% Recreation Leader (8) (50% Recreation Programs & Special Events)Professional Services5,000.00101-3002-60103Retired senior volunteer program, annual volunteer sponsorships to Watercolors of La Quinta, Boys & Girls Club ofLa Quinta, and the California Highway PatrolInstructors40,000.00101-3002-60107Instructors for fitness classes and programmingTechnical3,000.00101-3002-60108Annual sponsorship for the Riverside County Senior InspirationAwardsRental Expense3,000.00101-3002-60157General insurances and security guards for facility rentalsCITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET31 Travel & Training1,000.00101-3002-60320Park and recreational activity program training and certificationMembership Dues3,000.00101-3002-60351AmountMotion Picture Licensing Corporation (MPLC)500National Council on Aging (NCOA)100TechnoGym apps2,400Subscriptions & Publications700.00101-3002-60352AmountDesert Sun newspaper300Wellness publications400CITY OF LA QUINTAGENERAL FUND EXPENSE NOTES FY 2022/23 PROPOSED BUDGET32 THIS PAGE INTENTIONALLY LEFT BLANK 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 3003 - Recreation Programs & Special Events 50 - Salaries and Benefits 49,646 56,700 56,700 46,510 57,834 1,134 2%101-3003-50101 Permanent Full Time 12,511 69,400 69,400 30,476 105,900 36,500 53%101-3003-50102 Salaries - Part Time 3,962 10,500 10,500 4,393 10,100 (400)-4%101-3003-50200 PERS-City Portion 7,592 21,000 21,000 7,163 24,800 3,800 18%101-3003-50221 Medical Insurance 95 0 0 81 0 0 0%101-3003-50222 Vision Insurance 300 0 0 451 0 0 0%101-3003-50223 Dental Insurance 29 0 0 35 0 0 0%101-3003-50224 Life Insurance 204 1,300 1,300 226 400 (900)-69%101-3003-50225 Long Term Disability 2,100 2,100 2,100 1,575 2,100 0 0%101-3003-50230 Workers Comp Insurance 901 6,600 6,600 1,138 11,400 4,800 73%101-3003-50240 Social Security-Medicare 222 0 0 1,271 0 0 0%101-3003-50241 Social Security-FICA 0 0 30,000 1,478 0 (30,000)-100%101-3003-50251 Temporary 50 - Salaries and Benefits Totals:77,563 167,600 197,600 94,796 212,534 14,934 8% 60 - Contract Services 0 0 0 (684)0 0 0%101-3003-60107 Instructors 23,678 160,000 160,000 114,339 160,000 0 0%101-3003-60184 Fritz Burns Pool Programming 0 150,000 170,000 76,852 170,000 0 0%101-3003-60190 X-Park Programming 60 - Contract Services Totals:23,678 310,000 330,000 190,508 330,000 0 0% 62 - Maintenance & Operations 55,847 325,000 400,000 200,971 400,000 0 0%101-3003-60149 Community Experiences 51 1,000 1,000 703 5,000 4,000 400%101-3003-60157 Rental Expense 199 1,000 1,000 0 1,000 0 0%101-3003-60320 Travel & Training 200 500 500 200 500 0 0%101-3003-60351 Membership Dues 866 5,000 5,000 6,656 5,000 0 0%101-3003-60420 Operating Supplies 87 45,000 90,000 16,221 90,000 0 0%101-3003-60512 LQ Art Event 62 - Maintenance & Operations Totals:57,250 377,500 497,500 224,751 501,500 4,000 1% 64 - Other Expenses 1,610 0 0 0 0 0 0%101-3003-60540 Facility Rentals 64 - Other Expenses Totals:1,610 0 0 0 0 0 0% 69 - Internal Service Charges 18,800 19,100 19,100 14,325 23,000 3,900 20%101-3003-98110 Information Tech Charges 29,600 34,100 34,100 25,575 21,700 (12,400)-36%101-3003-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:48,400 53,200 53,200 39,900 44,700 (8,500)-16% 3003 - Recreation Programs & Special Events Totals:208,501 908,300 1,078,300 549,955 1,088,734 10,434 1% 49,646 56,700 56,700 46,510 57,834 1,134 12,511 69,400 69,400 30,476 105,900 36,500 3,962 10,500 10,500 4,393 10,100 (400) 7,592 21,000 21,000 7,163 24,800 3,800 95 0 0 81 0 0 300 0 0 451 0 0 29 0 0 35 0 0 204 1,300 1,300 226 400 (900) 2,100 2,100 2,100 1,575 2,100 0 901 6,600 6,600 1,138 11,400 4,800 222 0 0 1,271 0 0 0 0 30,000 1,478 0 (30,000) 77,563 167,600 197,600 94,796 212,534 14,934 0 0 0 (684)0 0 23,678 160,000 160,000 114,339 160,000 0 0 150,000 170,000 76,852 170,000 0 23,678 310,000 330,000 190,508 330,000 0 55,847 325,000 400,000 200,971 400,000 0 51 1,000 1,000 703 5,000 4,000 199 1,000 1,000 0 1,000 0 200 500 500 200 500 0 866 5,000 5,000 6,656 5,000 0 87 45,000 90,000 16,221 90,000 0 57,250 377,500 497,500 224,751 501,500 4,000 1,610 0 0 0 0 0 1,610 0 0 0 0 0 18,800 19,100 19,100 14,325 23,000 3,900 29,600 34,100 34,100 25,575 21,700 (12,400) 48,400 53,200 53,200 39,900 44,700 (8,500) 208,501 908,300 1,078,300 549,955 1,088,734 10,434 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 33 Department : 3003 - Recreation Programs & Special EventsPermanent Full Time57,834.00101-3003-50101100% - Management AssistantSalaries - Part Time105,900.00101-3003-5010250% Senior Recreation Leader (2) (50% Wellness Center Operations)50% Recreation Leader (8) (50% Wellness Center Operations)Community Experiences400,000.00101-3003-60149Anticipated events include 9/11 Vigil, Veteran's Day Celebration, Tree Lighting, Ironman, City Picnic, Art on Main, Summer Golf, Mission LQ Rocket Launch, Pillars of the Community, Brew in LQ, Concerts in the Park, and Soaring Over LQ Kite ExperienceRental Expense5,000.00101-3003-60157Special event insurances and security guards for eventsFritz Burns Pool Programming160,000.00101-3003-60184Pool operating contract servicesTravel & Training1,000.00101-3003-60320Park and recreation program training and certificationsMembership Dues500.00101-3003-60351Americans for ArtCalifornia Parks and Recreation Society (CPRS)CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET34 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 6004 - Code Compliance/Animal Control 50 - Salaries and Benefits 444,988 553,000 553,000 381,358 569,976 16,976 3%101-6004-50101 Permanent Full Time 14,071 15,000 15,000 1,527 15,000 0 0%101-6004-50105 Salaries - Overtime 0 100 100 0 100 0 0%101-6004-50106 Standby 0 20 20 0 20 0 0%101-6004-50150 Other Compensation 43,849 55,500 55,500 37,326 51,800 (3,700)-7%101-6004-50200 PERS-City Portion 113,563 163,100 163,100 103,189 193,100 30,000 18%101-6004-50221 Medical Insurance 1,477 0 0 1,127 0 0 0%101-6004-50222 Vision Insurance 6,447 0 0 5,142 0 0 0%101-6004-50223 Dental Insurance 240 0 0 290 0 0 0%101-6004-50224 Life Insurance 2,001 3,400 3,400 2,112 3,600 200 6%101-6004-50225 Long Term Disability 13,700 16,300 16,300 12,225 16,300 0 0%101-6004-50230 Workers Comp Insurance 6,735 8,200 8,200 5,953 8,100 (100)-1%101-6004-50240 Social Security-Medicare 64 0 0 1,715 0 0 0%101-6004-50241 Social Security- FICA 1,032 0 0 27,666 0 0 0%101-6004-50251 Temporary 50 - Salaries and Benefits Totals:648,166 814,620 814,620 579,631 857,996 43,376 5% 60 - Contract Services 43,949 80,000 80,000 41,694 80,000 0 0%101-6004-60103 Professional Services 240 1,000 1,000 200 1,000 0 0%101-6004-60108 Technical 18,847 18,000 18,000 9,245 18,000 0 0%101-6004-60111 Administrative Citation Services 0 500 500 0 500 0 0%101-6004-60119 Vehicle Abatement 7,231 10,000 10,000 16,031 20,000 10,000 100%101-6004-60120 Lot Cleaning/Gravel Program 657 2,000 2,000 480 2,000 0 0%101-6004-60122 Credit Card Fees 0 0 0 20,595 0 0 0%101-6004-60125 Temporary Agency Services 7,500 12,000 12,000 1,500 12,000 0 0%101-6004-60194 Veterinary Service 187,146 285,000 285,000 172,619 300,000 15,000 5%101-6004-60197 Animal Shelter Contract Service 60 - Contract Services Totals:265,571 408,500 408,500 262,364 433,500 25,000 6% 62 - Maintenance & Operations 0 1,000 1,000 0 1,000 0 0%101-6004-60121 Low-Income Housing Grants (540)1,200 1,200 540 3,000 1,800 150%101-6004-60320 Travel & Training 475 600 600 570 800 200 33%101-6004-60351 Membership Dues 2,546 2,000 2,000 1,550 2,000 0 0%101-6004-60400 Office Supplies 3,811 6,000 6,000 0 6,000 0 0%101-6004-60410 Printing 234 1,500 1,500 1,132 3,000 1,500 100%101-6004-60425 Supplies - Field 2,054 3,000 3,000 1,037 4,500 1,500 50%101-6004-60690 Uniforms 62 - Maintenance & Operations Totals:8,580 15,300 15,300 4,829 20,300 5,000 33% 69 - Internal Service Charges 127,300 148,700 148,700 111,525 179,300 30,600 21%101-6004-98110 Information Tech Charges 88,700 119,200 119,200 89,400 172,900 53,700 45%101-6004-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:216,000 267,900 267,900 200,925 352,200 84,300 31% 6004 - Code Compliance/Animal Control Totals:1,138,317 1,506,320 1,506,320 1,047,750 1,663,996 157,676 10% 444,988 553,000 553,000 381,358 569,976 16,976 14,071 15,000 15,000 1,527 15,000 0 0 100 100 0 100 0 0 20 20 0 20 0 43,849 55,500 55,500 37,326 51,800 (3,700) 113,563 163,100 163,100 103,189 193,100 30,000 1,477 0 0 1,127 0 0 6,447 0 0 5,142 0 0 240 0 0 290 0 0 2,001 3,400 3,400 2,112 3,600 200 13,700 16,300 16,300 12,225 16,300 0 6,735 8,200 8,200 5,953 8,100 (100) 64 0 0 1,715 0 0 1,032 0 0 27,666 0 0 648,166 814,620 814,620 579,631 857,996 43,376 43,949 80,000 80,000 41,694 80,000 0 240 1,000 1,000 200 1,000 0 18,847 18,000 18,000 9,245 18,000 0 0 500 500 0 500 0 7,231 10,000 10,000 16,031 20,000 10,000 657 2,000 2,000 480 2,000 0 0 0 0 20,595 0 0 7,500 12,000 12,000 1,500 12,000 0 187,146 285,000 285,000 172,619 300,000 15,000 265,571 408,500 408,500 262,364 433,500 25,000 0 1,000 1,000 0 1,000 0 (540)1,200 1,200 540 3,000 1,800 475 600 600 570 800 200 2,546 2,000 2,000 1,550 2,000 0 3,811 6,000 6,000 0 6,000 0 234 1,500 1,500 1,132 3,000 1,500 2,054 3,000 3,000 1,037 4,500 1,500 8,580 15,300 15,300 4,829 20,300 5,000 127,300 148,700 148,700 111,525 179,300 30,600 88,700 119,200 119,200 89,400 172,900 53,700 216,000 267,900 267,900 200,925 352,200 84,300 1,138,317 1,506,320 1,506,320 1,047,750 1,663,996 157,676 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 35 Department : 6004 - Code Compliance/Animal ControlPermanent Full Time569,976.00101-6004-50101100% - Animal Control/Code Compliance Supervisor 100% - Code Compliance Officer II (4)100% - Code Compliance Officer I (2) 80% - Administrative Technician (20% Fire)Professional Services80,000.00101-6004-60103Short-term vacation rental hotline and vacation rentalcomplianceTechnical1,000.00101-6004-60108Riverside County recording fees for liensAdministrative Citation Service18,000.00101-6004-60111Data ticket processing of code compliance and police citationsTravel & Training3,000.00101-6004-60320Code Enforcement officer training eventsMembership Dues800.00101-6004-60351Annual memberships for Code Officers to CA Association ofCode Enforcement Officers (CACEO)Printing6,000.00101-6004-60410CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGETCommunity educational outreach36 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 3005 - Parks Maintenance 50 - Salaries and Benefits 226,283 240,800 240,800 187,276 251,022 10,222 4%101-3005-50101 Permanent Full Time 1,252 700 700 210 700 0 0%101-3005-50105 Salaries - Overtime 6,930 3,500 3,500 5,278 5,500 2,000 57%101-3005-50106 Standby 20,364 4,000 4,000 19,043 20,000 16,000 400%101-3005-50107 Standby Overtime 0 0 0 10 300 300 0%101-3005-50150 Other Compensation 19,581 21,200 21,200 15,937 21,200 0 0%101-3005-50200 PERS-City Portion 56,628 73,200 73,200 45,153 86,700 13,500 18%101-3005-50221 Medical Insurance 802 0 0 551 0 0 0%101-3005-50222 Vision Insurance 4,874 0 0 2,863 0 0 0%101-3005-50223 Dental Insurance 123 0 0 126 0 0 0%101-3005-50224 Life Insurance 1,048 1,500 1,500 1,000 1,900 400 27%101-3005-50225 Long Term Disability 7,100 7,400 7,400 5,550 7,300 (100)-1%101-3005-50230 Workers Comp Insurance 3,696 3,600 3,600 3,071 3,600 0 0%101-3005-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:348,682 355,900 355,900 286,068 398,222 42,322 12% 60 - Contract Services 455,927 603,600 603,600 485,363 660,000 56,400 9%101-3005-60112 Landscape Contract 60 - Contract Services Totals:455,927 603,600 603,600 485,363 660,000 56,400 9% 62 - Maintenance & Operations 16,200 31,500 31,500 20,896 18,000 (13,500)-43%101-3005-60117 Civic Center Lake Maintenance 425 1,000 1,000 475 1,000 0 0%101-3005-60136 Lighting Service 94,431 60,000 60,000 67,246 66,000 6,000 10%101-3005-60184 Fritz Burns Pool Maintenance 0 30,000 30,000 12,150 18,000 (12,000)-40%101-3005-60189 SilverRock Lake Maintenance 1,349 3,000 3,000 1,400 5,000 2,000 67%101-3005-60320 Travel & Training 730 1,000 1,000 595 1,000 0 0%101-3005-60351 Membership Dues 989 1,000 1,000 98 1,000 0 0%101-3005-60400 Office Supplies 13,657 15,000 15,000 10,643 15,000 0 0%101-3005-60423 Supplies-Graffiti and Vandalism 588 1,000 1,000 767 1,200 200 20%101-3005-60427 Safety Gear 126,645 140,000 170,000 152,486 310,000 140,000 82%101-3005-60431 Materials/Supplies 3,780 3,000 3,000 4,694 5,000 2,000 67%101-3005-60432 Tools/Equipment 12,118 35,000 35,000 17,212 23,000 (12,000)-34%101-3005-60554 LQ Park Water Feature 3,500 10,000 10,000 3,200 10,000 0 0%101-3005-60557 Tree Maintenance 2,113 2,500 2,500 2,778 3,000 500 20%101-3005-60690 Uniforms 99,691 300,000 300,000 164,024 300,000 0 0%101-3005-60691 Maintenance/Services 62 - Maintenance & Operations Totals:376,216 634,000 664,000 458,663 777,200 113,200 17% 66 - Utilities 5,859 15,000 35,000 25,256 15,000 (20,000)-57%101-3005-61100 Gas-Utilities FB Pool 158 300 300 134 300 0 0%101-3005-61102 Electric - Monticello Park - Utilities 32,346 30,000 30,000 29,991 30,000 0 0%101-3005-61103 Electric - Civic Center Park - Utilities 0 100 100 0 100 0 0%101-3005-61104 Electric - Pioneer Park - Utilities 12,612 15,000 15,000 14,471 15,000 0 0%101-3005-61105 Electric - Fritz Burns Park - Utilities 0 40,000 40,000 36,990 40,000 0 0%101-3005-61106 Electric - Sports Complex - Utilities 853 5,000 5,000 4,671 5,000 0 0%101-3005-61108 Electric - Colonel Paige - Utilities 226,283 240,800 240,800 187,276 251,022 10,222 1,252 700 700 210 700 0 6,930 3,500 3,500 5,278 5,500 2,000 20,364 4,000 4,000 19,043 20,000 16,000 0 0 0 10 300 300 19,581 21,200 21,200 15,937 21,200 0 56,628 73,200 73,200 45,153 86,700 13,500 802 0 0 551 0 0 4,874 0 0 2,863 0 0 123 0 0 126 0 0 1,048 1,500 1,500 1,000 1,900 400 7,100 7,400 7,400 5,550 7,300 (100) 3,696 3,600 3,600 3,071 3,600 0 348,682 355,900 355,900 286,068 398,222 42,322 455,927 603,600 603,600 485,363 660,000 56,400 455,927 603,600 603,600 485,363 660,000 56,400 16,200 31,500 31,500 20,896 18,000 (13,500) 425 1,000 1,000 475 1,000 0 94,431 60,000 60,000 67,246 66,000 6,000 0 30,000 30,000 12,150 18,000 (12,000) 1,349 3,000 3,000 1,400 5,000 2,000 730 1,000 1,000 595 1,000 0 989 1,000 1,000 98 1,000 0 13,657 15,000 15,000 10,643 15,000 0 588 1,000 1,000 767 1,200 200 126,645 140,000 170,000 152,486 310,000 140,000 3,780 3,000 3,000 4,694 5,000 2,000 12,118 35,000 35,000 17,212 23,000 (12,000) 3,500 10,000 10,000 3,200 10,000 0 2,113 2,500 2,500 2,778 3,000 500 99,691 300,000 300,000 164,024 300,000 0 376,216 634,000 664,000 458,663 777,200 113,200 5,859 15,000 35,000 25,256 15,000 (20,000) 158 300 300 134 300 0 32,346 30,000 30,000 29,991 30,000 0 0 100 100 0 100 0 12,612 15,000 15,000 14,471 15,000 0 0 40,000 40,000 36,990 40,000 0 853 5,000 5,000 4,671 5,000 0 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 37 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 52,203 42,000 42,000 74,687 70,000 28,000 67%101-3005-61109 Electric - Community Park - Utilities 493 700 700 414 700 0 0%101-3005-61110 Electric - Adams Park - Utilities 162 200 200 139 200 0 0%101-3005-61111 Electric - Velasco Park - Utilities 277 350 350 258 350 0 0%101-3005-61113 Electric - Eisenhower Park - Utilities 158 250 250 134 250 0 0%101-3005-61114 Electric - Desert Pride - Utilities 7,532 25,000 25,000 27,972 25,000 0 0%101-3005-61115 Electric - SilverRock Event Site - Utilities 0 30,000 30,000 0 30,000 0 0%101-3005-61116 Electric - XPark Complex 23,282 25,000 25,000 15,005 30,000 5,000 20%101-3005-61201 Water -Monticello Park - Utilities 33,070 38,000 38,000 23,220 40,000 2,000 5%101-3005-61202 Water - Civic Center Park - Utilities 1,418 2,000 2,000 1,646 2,500 500 25%101-3005-61203 Water -Eisenhower Park - Utilities 26,772 26,000 26,000 20,767 30,000 4,000 15%101-3005-61204 Water -Fritz Burns Park - Utilities 1,532 1,300 1,300 1,979 2,000 700 54%101-3005-61205 Water -Velasco Park - Utilities 10,998 7,000 7,000 4,257 8,000 1,000 14%101-3005-61206 Water -Desert Pride - Utilities 10,919 13,000 13,000 6,288 15,000 2,000 15%101-3005-61207 Water -Pioneer Park - Utilities 227 300 300 255 500 200 67%101-3005-61208 Water -Seasons Park - Utilities 70,298 75,000 75,000 52,724 80,000 5,000 7%101-3005-61209 Water -Community Park - Utilities 0 50,000 50,000 0 55,000 5,000 10%101-3005-61211 Water - SilverRock Event Site 0 10,000 10,000 0 12,500 2,500 25%101-3005-61212 Water - XPark Complex 998 1,000 1,000 948 1,000 0 0%101-3005-61300 Telephone - Utilities 66 - Utilities Totals:292,167 452,500 472,500 342,207 508,400 35,900 8% 69 - Internal Service Charges 65,500 66,800 66,800 50,100 80,500 13,700 21%101-3005-98110 Information Tech Charges 200,000 350,000 350,000 262,500 450,000 100,000 29%101-3005-98130 Park Equipment Maintenance 43,700 68,100 68,100 51,075 172,900 104,800 154%101-3005-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:309,200 484,900 484,900 363,675 703,400 218,500 45% 3005 - Parks Maintenance Totals:1,782,193 2,530,900 2,580,900 1,935,976 3,047,222 466,322 18% 52,203 42,000 42,000 74,687 70,000 28,000 493 700 700 414 700 0 162 200 200 139 200 0 277 350 350 258 350 0 158 250 250 134 250 0 7,532 25,000 25,000 27,972 25,000 0 0 30,000 30,000 0 30,000 0 23,282 25,000 25,000 15,005 30,000 5,000 33,070 38,000 38,000 23,220 40,000 2,000 1,418 2,000 2,000 1,646 2,500 500 26,772 26,000 26,000 20,767 30,000 4,000 1,532 1,300 1,300 1,979 2,000 700 10,998 7,000 7,000 4,257 8,000 1,000 10,919 13,000 13,000 6,288 15,000 2,000 227 300 300 255 500 200 70,298 75,000 75,000 52,724 80,000 5,000 0 50,000 50,000 0 55,000 5,000 0 10,000 10,000 0 12,500 2,500 998 1,000 1,000 948 1,000 0 292,167 452,500 472,500 342,207 508,400 35,900 65,500 66,800 66,800 50,100 80,500 13,700 200,000 350,000 350,000 262,500 450,000 100,000 43,700 68,100 68,100 51,075 172,900 104,800 309,200 484,900 484,900 363,675 703,400 218,500 1,782,193 2,530,900 2,580,900 1,935,976 3,047,222 466,322 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 38 Department : 3005 - Parks MaintenancePermanent Full Time251,022.00101-3005-5010150% - Facilities Deputy Director (50% Public Buildings)50% - Parks/L&L Foreman (50% Lighting & Landscape Fund) 50% - Maintenance Worker II (50% Lighting & Landscape Fund)50% - Maintenance Worker I (3 total, 50% Lighting & Landscape Fund)50% - Management Analyst (50% Lighting & Landscape Fund)Landscape Contract660,000.00101-3005-60112Landscape contract services for all City Parks including the SilverRock event site and X-Park Fritz Burns Pool Maintenance66,000.00101-3005-60184Pool maintenance servicesTravel & Training5,000.00101-3005-60320Aquatic facility operator courseMaintenance agreement schoolPlayground certificationsMembership Dues1,000.00101-3005-60351AmountCA Parks & Recreation Association (CPRS)500National Park & Recreation Association (NPRA)500Maintenance/Services300,000.00101-3005-60691CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGETLandscape renovations, electrical and fence repairs, painting, tree removal and other landscape related maintenance and repairsPark Equipment Maintenance450,000.00101-3005-98130Funds are transferred to the Park Equipment & Facility InternalService Fund for park equipment replacements39 THIS PAGE INTENTIONALLY LEFT BLANK 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 3008 - Public Buildings 50 - Salaries and Benefits 323,614 346,800 346,800 297,233 369,852 23,052 7%101-3008-50101 Permanent Full Time 213 0 0 344 0 0 0%101-3008-50105 Salaries - Overtime 9,423 6,000 6,000 7,834 8,000 2,000 33%101-3008-50106 Standby 10,057 4,400 4,400 13,605 15,000 10,600 241%101-3008-50107 Standby Overtime 482 500 500 403 500 0 0%101-3008-50150 Other Compensation 28,622 31,100 31,100 25,753 31,700 600 2%101-3008-50200 PERS-City Portion 70,832 94,100 94,100 64,551 111,400 17,300 18%101-3008-50221 Medical Insurance 1,289 0 0 1,037 0 0 0%101-3008-50222 Vision Insurance 4,743 0 0 4,353 0 0 0%101-3008-50223 Dental Insurance 157 0 0 196 0 0 0%101-3008-50224 Life Insurance 1,513 2,100 2,100 1,628 1,900 (200)-10%101-3008-50225 Long Term Disability 9,100 9,400 9,400 7,050 9,400 0 0%101-3008-50230 Workers Comp Insurance 5,039 5,200 5,200 4,662 5,300 100 2%101-3008-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:465,083 499,600 499,600 428,649 553,052 53,452 11% 60 - Contract Services 143,822 192,500 192,500 117,330 215,000 22,500 12%101-3008-60115 Janitorial 6,572 9,000 9,000 5,129 9,000 0 0%101-3008-60116 Pest Control 3,630 8,000 8,000 7,158 12,000 4,000 50%101-3008-60123 Security & Alarm 5,184 6,000 6,000 3,895 6,000 0 0%101-3008-60196 Annual Permits/Inspections 60 - Contract Services Totals:159,208 215,500 215,500 133,512 242,000 26,500 12% 62 - Maintenance & Operations 325 1,000 1,000 85 2,000 1,000 100%101-3008-60320 Travel & Training 857 1,000 1,000 935 1,200 200 20%101-3008-60427 Safety Gear 31,070 35,000 35,000 26,890 35,000 0 0%101-3008-60431 Materials/Supplies 8,383 8,000 8,000 1,792 8,000 0 0%101-3008-60432 Tools/Equipment 0 500 500 385 500 0 0%101-3008-60481 Office Supplies 647 0 0 0 0 0 0%101-3008-60664 Fire Extinguisher 40,820 70,000 70,000 68,787 70,000 0 0%101-3008-60667 HVAC 989 1,500 1,500 1,460 1,700 200 13%101-3008-60690 Uniforms 30,967 60,000 60,000 38,326 60,000 0 0%101-3008-60691 Maintenance/Services 1,100 1,100 1,100 0 1,100 0 0%101-3008-61702 Facility Rent 62 - Maintenance & Operations Totals:115,158 178,100 178,100 138,659 179,500 1,400 1% 66 - Utilities 5,139 7,000 7,000 9,066 8,500 1,500 21%101-3008-61100 Gas - Utilities 131,862 140,000 140,000 146,851 140,000 0 0%101-3008-61101 Electricity - Utilities 8,363 9,000 9,000 7,776 10,000 1,000 11%101-3008-61200 Water - Utilities 66 - Utilities Totals:145,363 156,000 156,000 163,694 158,500 2,500 2% 69 - Internal Service Charges 62,000 67,000 67,000 50,250 67,000 0 0%101-3008-91842 Liability Insurance & Claims 84,300 85,800 85,800 64,350 103,500 17,700 21%101-3008-98110 Information Tech Charges 88,700 119,200 119,200 89,400 86,500 (32,700)-27%101-3008-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:235,000 272,000 272,000 204,000 257,000 (15,000)-6% 323,614 346,800 346,800 297,233 369,852 23,052 213 0 0 344 0 0 9,423 6,000 6,000 7,834 8,000 2,000 10,057 4,400 4,400 13,605 15,000 10,600 482 500 500 403 500 0 28,622 31,100 31,100 25,753 31,700 600 70,832 94,100 94,100 64,551 111,400 17,300 1,289 0 0 1,037 0 0 4,743 0 0 4,353 0 0 157 0 0 196 0 0 1,513 2,100 2,100 1,628 1,900 (200) 9,100 9,400 9,400 7,050 9,400 0 5,039 5,200 5,200 4,662 5,300 100 465,083 499,600 499,600 428,649 553,052 53,452 143,822 192,500 192,500 117,330 215,000 22,500 6,572 9,000 9,000 5,129 9,000 0 3,630 8,000 8,000 7,158 12,000 4,000 5,184 6,000 6,000 3,895 6,000 0 159,208 215,500 215,500 133,512 242,000 26,500 325 1,000 1,000 85 2,000 1,000 857 1,000 1,000 935 1,200 200 31,070 35,000 35,000 26,890 35,000 0 8,383 8,000 8,000 1,792 8,000 0 0 500 500 385 500 0 647 0 0 0 0 0 40,820 70,000 70,000 68,787 70,000 0 989 1,500 1,500 1,460 1,700 200 30,967 60,000 60,000 38,326 60,000 0 1,100 1,100 1,100 0 1,100 0 115,158 178,100 178,100 138,659 179,500 1,400 5,139 7,000 7,000 9,066 8,500 1,500 131,862 140,000 140,000 146,851 140,000 0 8,363 9,000 9,000 7,776 10,000 1,000 145,363 156,000 156,000 163,694 158,500 2,500 62,000 67,000 67,000 50,250 67,000 0 84,300 85,800 85,800 64,350 103,500 17,700 88,700 119,200 119,200 89,400 86,500 (32,700) 235,000 272,000 272,000 204,000 257,000 (15,000) CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 40 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 3008 - Public Buildings Totals:1,119,812 1,321,200 1,321,200 1,068,515 1,390,052 68,852 5%1,119,812 1,321,200 1,321,200 1,068,515 1,390,052 68,852 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 41 Department : 3008 - Public BuildingsPermanent Full Time369,852.00101-3008-50101 50% - Facilities Deputy Director (50% Parks Maintenance)100% - Management Analyst 100% - Maintenance and Operations Technician100% - Maintenance and Operations Coordinator100% - Maintenance Worker IJanitorial215,000.00101-3008-60115Janitorial services for all public buildings including parksTravel & Training2,000.00101-3008-60320HVAC trainingHVAC70,000.00101-3008-60667For all public buildings including City Hall, Fritz Burns Pool, La Quinta Park, Maintenance Yard, Public Works Office, Sports Complex, and Wellness CenterMaintenance/Services60,000.00101-3008-60691Public building repairs and maintenanceFacility Rent1,100.00101-3008-61702Finance Authority requires an annual State Controller's Report.The 1996 Civic Center Bond was paid off in October 2018. CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET42 THIS PAGE INTENTIONALLY LEFT BLANK 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 7001 - Public Works Administration 50 - Salaries and Benefits 325,360 368,800 368,800 282,890 390,762 21,962 6%101-7001-50101 Permanent Full Time 1,772 500 500 1,226 500 0 0%101-7001-50150 Other Compensation 31,836 36,400 36,400 27,727 37,000 600 2%101-7001-50200 PERS-City Portion 52,456 83,700 83,700 49,796 99,000 15,300 18%101-7001-50221 Medical Insurance 1,003 0 0 781 0 0 0%101-7001-50222 Vision Insurance 5,901 0 0 3,572 0 0 0%101-7001-50223 Dental Insurance 227 0 0 207 0 0 0%101-7001-50224 Life Insurance 1,302 1,800 1,800 1,463 2,100 300 17%101-7001-50225 Long Term Disability 8,100 8,400 8,400 6,300 8,400 0 0%101-7001-50230 Workers Comp Insurance 4,761 5,500 5,500 4,138 5,600 100 2%101-7001-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:432,718 505,100 505,100 378,100 543,362 38,262 8% 60 - Contract Services 1,254 150,000 150,000 0 150,000 0 0%101-7001-60104 Consultants 60 - Contract Services Totals:1,254 150,000 150,000 0 150,000 0 0% 62 - Maintenance & Operations 0 5,000 5,000 2,227 5,000 0 0%101-7001-60320 Travel & Training 0 500 500 1,350 1,500 1,000 200%101-7001-60351 Membership Dues 553 2,000 2,000 536 2,000 0 0%101-7001-60400 Office Supplies 41 1,000 1,000 271 1,000 0 0%101-7001-60420 Operating Supplies 62 - Maintenance & Operations Totals:594 8,500 8,500 4,384 9,500 1,000 12% 69 - Internal Service Charges 74,900 76,300 76,300 57,225 92,000 15,700 21%101-7001-98110 Information Tech Charges 69 - Internal Service Charges Totals:74,900 76,300 76,300 57,225 92,000 15,700 21% 7001 - Public Works Administration Totals:509,466 739,900 739,900 439,709 794,862 54,962 7% 325,360 368,800 368,800 282,890 390,762 21,962 1,772 500 500 1,226 500 0 31,836 36,400 36,400 27,727 37,000 600 52,456 83,700 83,700 49,796 99,000 15,300 1,003 0 0 781 0 0 5,901 0 0 3,572 0 0 227 0 0 207 0 0 1,302 1,800 1,800 1,463 2,100 300 8,100 8,400 8,400 6,300 8,400 0 4,761 5,500 5,500 4,138 5,600 100 432,718 505,100 505,100 378,100 543,362 38,262 1,254 150,000 150,000 0 150,000 0 1,254 150,000 150,000 0 150,000 0 0 5,000 5,000 2,227 5,000 0 0 500 500 1,350 1,500 1,000 553 2,000 2,000 536 2,000 0 41 1,000 1,000 271 1,000 0 594 8,500 8,500 4,384 9,500 1,000 74,900 76,300 76,300 57,225 92,000 15,700 74,900 76,300 76,300 57,225 92,000 15,700 509,466 739,900 739,900 439,709 794,862 54,962 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 43 Department : 7001 - Public Works AdministrationPermanent Full Time390,762.00101-7001-50101100% - Public Works Director/City Engineer100% - Management Analyst100% - Management Assistant 100% - Administrative Assistant Consultants150,000.00101-7001-60104Professional services and on-call electrical servicesTravel & Training5,000.00101-7001-60320Certification trainingsMembership Dues1,500.00101-7001-60351American Public Works Association (APWA)American Traffic Safety Services Association (ATSSA)CITY OF LA QUINTAGENERAL FUND EXPENSE NOTES FY 2022/23 PROPOSED BUDGET44 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 7002 - Public Works Development Services 50 - Salaries and Benefits 111,301 118,100 118,100 101,909 125,460 7,360 6%101-7002-50101 Permanent Full Time 482 0 0 403 0 0 0%101-7002-50150 Other Compensation 13,752 14,700 14,700 12,433 15,100 400 3%101-7002-50200 PERS-City Portion 11,990 21,000 21,000 6,377 24,800 3,800 18%101-7002-50221 Medical Insurance 103 0 0 39 0 0 0%101-7002-50222 Vision Insurance 620 0 0 235 0 0 0%101-7002-50223 Dental Insurance 35 0 0 44 0 0 0%101-7002-50224 Life Insurance 496 600 600 542 800 200 33%101-7002-50225 Long Term Disability 2,100 2,100 2,100 1,575 2,100 0 0%101-7002-50230 Workers Comp Insurance 1,614 1,800 1,800 1,505 1,800 0 0%101-7002-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:142,493 158,300 158,300 125,062 170,060 11,760 7% 60 - Contract Services 55,100 85,000 85,000 16,996 95,000 10,000 12%101-7002-60103 Professional Services 3,500 5,000 5,000 3,500 5,000 0 0%101-7002-60104 Consultants 104,358 110,000 125,000 71,488 150,000 25,000 20%101-7002-60183 Map/Plan Checking 60 - Contract Services Totals:162,958 200,000 215,000 91,984 250,000 35,000 16% 62 - Maintenance & Operations 0 1,000 1,000 0 1,000 0 0%101-7002-60320 Travel & Training 0 500 500 0 500 0 0%101-7002-60351 Membership Dues 0 500 500 0 500 0 0%101-7002-60420 Operating Supplies 1,044 700 2,700 1,960 3,000 300 11%101-7002-60450 Advertising 62 - Maintenance & Operations Totals:1,044 2,700 4,700 1,960 5,000 300 6% 69 - Internal Service Charges 18,800 19,100 19,100 14,325 23,000 3,900 20%101-7002-98110 Information Tech Charges 29,600 51,100 51,100 38,325 64,900 13,800 27%101-7002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:48,400 70,200 70,200 52,650 87,900 17,700 25% 7002 - Public Works Development Services Totals:354,895 431,200 448,200 271,656 512,960 64,760 14% 111,301 118,100 118,100 101,909 125,460 7,360 482 0 0 403 0 0 13,752 14,700 14,700 12,433 15,100 400 11,990 21,000 21,000 6,377 24,800 3,800 103 0 0 39 0 0 620 0 0 235 0 0 35 0 0 44 0 0 496 600 600 542 800 200 2,100 2,100 2,100 1,575 2,100 0 1,614 1,800 1,800 1,505 1,800 0 142,493 158,300 158,300 125,062 170,060 11,760 55,100 85,000 85,000 16,996 95,000 10,000 3,500 5,000 5,000 3,500 5,000 0 104,358 110,000 125,000 71,488 150,000 25,000 162,958 200,000 215,000 91,984 250,000 35,000 0 1,000 1,000 0 1,000 0 0 500 500 0 500 0 0 500 500 0 500 0 1,044 700 2,700 1,960 3,000 300 1,044 2,700 4,700 1,960 5,000 300 18,800 19,100 19,100 14,325 23,000 3,900 29,600 51,100 51,100 38,325 64,900 13,800 48,400 70,200 70,200 52,650 87,900 17,700 354,895 431,200 448,200 271,656 512,960 64,760 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 45 Department : 7002 - Public Works Development ServicesPermanent Full Time125,460.00101-7002-50101100% - Associate EngineerProfessional Services95,000.00101-7002-60103AmountNational Pollution Discharge Elimination Systems65,000Stormwater Commercial/Restaurant State Mandate30,000Consultants5,000.00101-7002-60104AmountProject consulting services5,000Map/Plan Checking150,000.00101-7002-60183On-call map checking and engineering civil plan check servicesTravel & Training1,000.00101-7002-60320For various training events including: Desert Valley Builders Association meetings, American Public Works Association, professional engineering review courses, and water quality/ flood seminarsMembership Dues500.00101-7002-60351AmountBoard of Civil Engineers license300Other professional organizations200Advertising3,000.00101-7002-60450Public hearing noticesCITY OF LA QUINTAGENERAL FUND EXPENSE NOTES FY 2022/23 PROPOSED BUDGET46 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 7003 - Streets 50 - Salaries and Benefits 207,493 223,200 223,200 161,913 248,268 25,068 11%101-7003-50101 Permanent Full Time 23 0 0 547 0 0 0%101-7003-50105 Salaries - Overtime 7,585 7,000 7,000 5,722 9,000 2,000 29%101-7003-50106 Standby 90 2,700 2,700 2,766 1,000 (1,700)-63%101-7003-50107 Standby Overtime 906 1,000 1,000 403 500 (500)-50%101-7003-50150 Other Compensation 19,990 22,100 22,100 15,791 18,200 (3,900)-18%101-7003-50200 PERS-City Portion 44,425 62,800 62,800 32,212 74,300 11,500 18%101-7003-50221 Medical Insurance 560 0 0 360 0 0 0%101-7003-50222 Vision Insurance 2,444 0 0 2,041 0 0 0%101-7003-50223 Dental Insurance 101 0 0 116 0 0 0%101-7003-50224 Life Insurance 947 1,300 1,300 874 1,600 300 23%101-7003-50225 Long Term Disability 6,100 6,300 6,300 4,725 6,300 0 0%101-7003-50230 Workers Comp Insurance 3,120 2,000 2,000 2,473 3,600 1,600 80%101-7003-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:293,784 328,400 328,400 229,943 362,768 34,368 10% 60 - Contract Services 45,650 70,000 70,000 0 250,000 180,000 257%101-7003-60103 Professional Services 12,739 10,000 10,000 7,849 10,000 0 0%101-7003-60120 Street Cleaning/Accidents 60 - Contract Services Totals:58,389 80,000 80,000 7,849 260,000 180,000 225% 62 - Maintenance & Operations 2,450 4,000 6,000 465 10,000 4,000 67%101-7003-60320 Travel & Training 400 500 500 412 500 0 0%101-7003-60351 Membership Dues 282 500 500 59 500 0 0%101-7003-60400 Office Supplies 7,669 6,000 6,000 8,941 10,000 4,000 67%101-7003-60420 Operating Supplies 6,568 15,000 15,000 12,649 37,000 22,000 147%101-7003-60432 Tools/Equipment 62 - Maintenance & Operations Totals:17,369 26,000 28,000 22,527 58,000 30,000 107% 64 - Other Expenses 0 5,000 5,000 0 5,000 0 0%101-7003-60510 Signal Knockdowns, Contingency 64 - Other Expenses Totals:0 5,000 5,000 0 5,000 0 0% 68 - Capital Expenses 11,257 0 0 0 0 0 0%101-7003-80100 Machinery & Equipment 68 - Capital Expenses Totals:11,257 0 0 0 0 0 0% 69 - Internal Service Charges 56,200 57,200 57,200 42,900 69,000 11,800 21%101-7003-98110 Information Tech Charges 69 - Internal Service Charges Totals:56,200 57,200 57,200 42,900 69,000 11,800 21% 7003 - Streets Totals:437,000 496,600 498,600 303,219 754,768 256,168 51% 207,493 223,200 223,200 161,913 248,268 25,068 23 0 0 547 0 0 7,585 7,000 7,000 5,722 9,000 2,000 90 2,700 2,700 2,766 1,000 (1,700) 906 1,000 1,000 403 500 (500) 19,990 22,100 22,100 15,791 18,200 (3,900) 44,425 62,800 62,800 32,212 74,300 11,500 560 0 0 360 0 0 2,444 0 0 2,041 0 0 101 0 0 116 0 0 947 1,300 1,300 874 1,600 300 6,100 6,300 6,300 4,725 6,300 0 3,120 2,000 2,000 2,473 3,600 1,600 293,784 328,400 328,400 229,943 362,768 34,368 45,650 70,000 70,000 0 250,000 180,000 12,739 10,000 10,000 7,849 10,000 0 58,389 80,000 80,000 7,849 260,000 180,000 2,450 4,000 6,000 465 10,000 4,000 400 500 500 412 500 0 282 500 500 59 500 0 7,669 6,000 6,000 8,941 10,000 4,000 6,568 15,000 15,000 12,649 37,000 22,000 17,369 26,000 28,000 22,527 58,000 30,000 0 5,000 5,000 0 5,000 0 0 5,000 5,000 0 5,000 0 11,257 0 0 0 0 0 11,257 0 0 0 0 0 56,200 57,200 57,200 42,900 69,000 11,800 56,200 57,200 57,200 42,900 69,000 11,800 437,000 496,600 498,600 303,219 754,768 256,168 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 47 Department : 7003 - StreetsPermanent Full Time248,268.00101-7003-50101100% - Traffic Operations Analyst100% - Traffic Signal Technician (2)Professional Services250,000.00101-7003-60103Street division support services and unanticipated repairs suchas sidewalks, sinkholes, asphalt, and drainage channels. Travel & Training10,000.00101-7003-60320Onsite hearing tests and American Traffic Safety Services AssociationClass B commercial and equipment operator certificationMembership Dues500.00101-7003-60351CA Park and RecreationsAmerican Traffic Safety Services Association (ATSSA)Signal Knockdowns, Contingen5,000.00101-7003-60510For traffic signal repairs due to accidentsCITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET48 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 7006 - Engineering Services 50 - Salaries and Benefits 220,144 232,800 232,800 201,072 237,456 4,656 2%101-7006-50101 Permanent Full Time 663 0 0 0 0 0 0%101-7006-50105 Salaries - Overtime 9,012 9,000 9,000 7,210 9,000 0 0%101-7006-50106 Standby 0 1,000 1,000 0 1,000 0 0%101-7006-50107 Standby Overtime 533 500 500 403 500 0 0%101-7006-50150 Other Compensation 16,591 18,000 18,000 14,944 18,000 0 0%101-7006-50200 PERS-City Portion 37,980 62,800 62,800 38,441 74,300 11,500 18%101-7006-50221 Medical Insurance 593 0 0 507 0 0 0%101-7006-50222 Vision Insurance 3,883 0 0 3,029 0 0 0%101-7006-50223 Dental Insurance 105 0 0 130 0 0 0%101-7006-50224 Life Insurance 1,025 1,400 1,400 1,103 1,400 0 0%101-7006-50225 Long Term Disability 6,100 6,300 6,300 4,725 6,300 0 0%101-7006-50230 Workers Comp Insurance 3,376 3,500 3,500 3,056 3,500 0 0%101-7006-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:300,006 335,300 335,300 274,621 351,456 16,156 5% 60 - Contract Services 16,499 10,000 25,000 12,258 210,000 185,000 740%101-7006-60103 Professional Services 21,088 60,000 60,000 12,798 60,000 0 0%101-7006-60104 Consultants 121,694 200,000 200,000 88,055 200,000 0 0%101-7006-60144 Contract Traffic Engineer 0 20,000 20,000 0 20,000 0 0%101-7006-60145 Traffic Counts/Studies 117,430 70,000 70,000 5,649 100,000 30,000 43%101-7006-60146 PM 10 - Dust Control 60 - Contract Services Totals:276,711 360,000 375,000 118,759 590,000 215,000 57% 62 - Maintenance & Operations 4,338 5,000 5,000 2,268 5,000 0 0%101-7006-60320 Travel & Training 0 1,100 1,100 475 1,100 0 0%101-7006-60351 Membership Dues 0 200 200 0 200 0 0%101-7006-60352 Subscriptions & Publications 1,013 1,000 2,000 1,736 1,000 (1,000)-50%101-7006-60420 Operating Supplies 729 1,000 1,000 884 1,000 0 0%101-7006-60427 Safety Gear 1,739 1,000 1,000 1,231 2,000 1,000 100%101-7006-60690 Uniforms 62 - Maintenance & Operations Totals:7,820 9,300 10,300 6,594 10,300 0 0% 64 - Other Expenses 0 0 324,100 0 0 (324,100)-100%101-7006-60480 Contributions to Other Agencies 64 - Other Expenses Totals:0 0 324,100 0 0 (324,100)-100% 69 - Internal Service Charges 56,200 57,200 57,200 42,900 69,000 11,800 21%101-7006-98110 Information Tech Charges 69 - Internal Service Charges Totals:56,200 57,200 57,200 42,900 69,000 11,800 21% 7006 - Engineering Services Totals:640,737 761,800 1,101,900 442,873 1,020,756 (81,144)-7% 220,144 232,800 232,800 201,072 237,456 4,656 663 0 0 0 0 0 9,012 9,000 9,000 7,210 9,000 0 0 1,000 1,000 0 1,000 0 533 500 500 403 500 0 16,591 18,000 18,000 14,944 18,000 0 37,980 62,800 62,800 38,441 74,300 11,500 593 0 0 507 0 0 3,883 0 0 3,029 0 0 105 0 0 130 0 0 1,025 1,400 1,400 1,103 1,400 0 6,100 6,300 6,300 4,725 6,300 0 3,376 3,500 3,500 3,056 3,500 0 300,006 335,300 335,300 274,621 351,456 16,156 16,499 10,000 25,000 12,258 210,000 185,000 21,088 60,000 60,000 12,798 60,000 0 121,694 200,000 200,000 88,055 200,000 0 0 20,000 20,000 0 20,000 0 117,430 70,000 70,000 5,649 100,000 30,000 276,711 360,000 375,000 118,759 590,000 215,000 4,338 5,000 5,000 2,268 5,000 0 0 1,100 1,100 475 1,100 0 0 200 200 0 200 0 1,013 1,000 2,000 1,736 1,000 (1,000) 729 1,000 1,000 884 1,000 0 1,739 1,000 1,000 1,231 2,000 1,000 7,820 9,300 10,300 6,594 10,300 0 0 0 324,100 0 0 (324,100) 0 0 324,100 0 0 (324,100) 56,200 57,200 57,200 42,900 69,000 11,800 56,200 57,200 57,200 42,900 69,000 11,800 640,737 761,800 1,101,900 442,873 1,020,756 (81,144) CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 49 Department : 7006 - Engineering ServicesPermanent Full Time237,456.00101-7006-50101100% - Assistant Construction Manager100% - Construction Inspector (2)Professional Services210,000.00101-7006-60103Replacement of street name signsConsultants60,000.00101-7006-60104AmountProject design services60,000PM 10 - Dust Control100,000.00101-7006-60146Vacant city land dust control - near SilverRock and on Highway 111 next to the Marriott HotelTravel & Training5,000.00101-7006-60320AmountCoachella Valley APWA meetings300Geographic Information Systems training2,000International Signal Association cert training1,000National Pollutant Discharge Elimination System1,700Membership Dues1,100.00101-7006-60351AmountAmerican Public Works Association (APWA)500American Society of Civil Engineers (ASCE)300Institute of Transportation Engineers (ITE)300Subscriptions & Publications200.00101-7006-60352Subdivision map act booksCITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET50 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 6001 - Design & Development Administration 50 - Salaries and Benefits 294,856 274,400 274,400 269,650 286,824 12,424 5%101-6001-50101 Permanent Full Time 34 0 0 0 0 0 0%101-6001-50105 Salaries - Overtime 6,500 8,400 8,400 8,300 8,400 0 0%101-6001-50110 Commissions & Boards 880 500 500 1,208 500 0 0%101-6001-50150 Other Compensation 23,372 25,500 25,500 24,130 25,700 200 1%101-6001-50200 PERS-City Portion 50,988 62,800 62,800 60,701 74,300 11,500 18%101-6001-50221 Medical Insurance 573 0 0 622 0 0 0%101-6001-50222 Vision Insurance 3,164 0 0 2,589 0 0 0%101-6001-50223 Dental Insurance 148 0 0 194 0 0 0%101-6001-50224 Life Insurance 942 1,300 1,300 1,383 1,600 300 23%101-6001-50225 Long Term Disability 6,100 6,300 6,300 4,725 6,300 0 0%101-6001-50230 Workers Comp Insurance 4,370 4,300 4,300 4,030 4,400 100 2%101-6001-50240 Social Security-Medicare 391 0 0 477 0 0 0%101-6001-50241 Social Security-FICA 50 - Salaries and Benefits Totals:392,319 383,500 383,500 378,010 408,024 24,524 6% 60 - Contract Services 0 10,000 10,000 0 10,000 0 0%101-6001-60104 Consultants 130,192 110,000 150,000 144,514 150,000 0 0%101-6001-60122 Credit Card Fees 60 - Contract Services Totals:130,192 120,000 160,000 144,514 160,000 0 0% 62 - Maintenance & Operations 0 4,000 4,000 280 5,000 1,000 25%101-6001-60320 Travel & Training 130 200 200 440 600 400 200%101-6001-60351 Membership Dues 570 700 700 100 700 0 0%101-6001-60352 Subscriptions & Publications 648 3,000 3,000 106 3,000 0 0%101-6001-60400 Office Supplies 0 400 400 0 400 0 0%101-6001-60410 Printing 405 1,000 1,000 421 1,000 0 0%101-6001-60420 Operating Supplies 0 1,000 1,000 840 1,000 0 0%101-6001-60450 Advertising 62 - Maintenance & Operations Totals:1,753 10,300 10,300 2,186 11,700 1,400 14% 69 - Internal Service Charges 56,200 57,200 57,200 42,900 69,000 11,800 21%101-6001-98110 Information Tech Charges 59,100 85,200 85,200 63,900 108,100 22,900 27%101-6001-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:115,300 142,400 142,400 106,800 177,100 34,700 24% 6001 - Design & Development Administration Totals:639,565 656,200 696,200 631,510 756,824 60,624 9% 294,856 274,400 274,400 269,650 286,824 12,424 34 0 0 0 0 0 6,500 8,400 8,400 8,300 8,400 0 880 500 500 1,208 500 0 23,372 25,500 25,500 24,130 25,700 200 50,988 62,800 62,800 60,701 74,300 11,500 573 0 0 622 0 0 3,164 0 0 2,589 0 0 148 0 0 194 0 0 942 1,300 1,300 1,383 1,600 300 6,100 6,300 6,300 4,725 6,300 0 4,370 4,300 4,300 4,030 4,400 100 391 0 0 477 0 0 392,319 383,500 383,500 378,010 408,024 24,524 0 10,000 10,000 0 10,000 0 130,192 110,000 150,000 144,514 150,000 0 130,192 120,000 160,000 144,514 160,000 0 0 4,000 4,000 280 5,000 1,000 130 200 200 440 600 400 570 700 700 100 700 0 648 3,000 3,000 106 3,000 0 0 400 400 0 400 0 405 1,000 1,000 421 1,000 0 0 1,000 1,000 840 1,000 0 1,753 10,300 10,300 2,186 11,700 1,400 56,200 57,200 57,200 42,900 69,000 11,800 59,100 85,200 85,200 63,900 108,100 22,900 115,300 142,400 142,400 106,800 177,100 34,700 639,565 656,200 696,200 631,510 756,824 60,624 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 51 Department : 6001 - Design & Development AdministrationPermanent Full Time286,824.00101-6001-50101100% - Design & Development Director100% - Administrative Assistant100% - Administrative Technician Consultants10,000.00101-6001-60104AmountDisadvantaged Business Enterprise Program5,000Studies and predesign for projects5,000Travel & Training5,000.00101-6001-60320AmountAmerican Planning Association (APA) Conference2,500Staff professional development2,500Membership Dues600.00101-6001-60351AmountAmerican Public Works Association (APWA)600Subscriptions & Publications700.00101-6001-60352The Desert SunPrinting400.00101-6001-60410Materials for community eventsAdvertising1,000.00101-6001-60450Public noticing requirementsCITY OF LA QUINTAGENERAL FUND EXPENSE NOTES FY 2022/23 PROPOSED BUDGET52 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 6002 - Planning 50 - Salaries and Benefits 274,407 294,800 294,800 251,395 317,730 22,930 8%101-6002-50101 Permanent Full Time 1,445 0 0 1,208 0 0 0%101-6002-50150 Other Compensation 21,097 22,800 22,800 19,048 23,300 500 2%101-6002-50200 PERS-City Portion 43,730 62,800 62,800 33,932 74,300 11,500 18%101-6002-50221 Medical Insurance 582 0 0 470 0 0 0%101-6002-50222 Vision Insurance 2,896 0 0 1,774 0 0 0%101-6002-50223 Dental Insurance 105 0 0 130 0 0 0%101-6002-50224 Life Insurance 1,270 1,700 1,700 1,381 2,000 300 18%101-6002-50225 Long Term Disability 6,100 6,300 6,300 4,725 6,300 0 0%101-6002-50230 Workers Comp Insurance 3,979 4,400 4,400 3,672 4,600 200 5%101-6002-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:355,610 392,800 392,800 317,737 428,230 35,430 9% 60 - Contract Services 76,097 210,000 210,000 13,842 160,000 (50,000)-24%101-6002-60103 Professional Services 17,050 0 0 49,822 65,000 65,000 0%101-6002-60125 Temporary Agency Services 60 - Contract Services Totals:93,147 210,000 210,000 63,664 225,000 15,000 7% 62 - Maintenance & Operations 3,437 8,000 8,000 852 14,000 6,000 75%101-6002-60320 Travel & Training 375 500 500 375 500 0 0%101-6002-60351 Membership Dues 0 100 100 299 100 0 0%101-6002-60352 Subscriptions & Publications 11,314 10,000 10,000 6,902 8,000 (2,000)-20%101-6002-60450 Advertising 62 - Maintenance & Operations Totals:15,126 18,600 18,600 8,428 22,600 4,000 22% 69 - Internal Service Charges 56,200 57,200 57,200 42,900 69,000 11,800 21%101-6002-98110 Information Tech Charges 69 - Internal Service Charges Totals:56,200 57,200 57,200 42,900 69,000 11,800 21% 6002 - Planning Totals:520,082 678,600 678,600 432,729 744,830 66,230 10% 274,407 294,800 294,800 251,395 317,730 22,930 1,445 0 0 1,208 0 0 21,097 22,800 22,800 19,048 23,300 500 43,730 62,800 62,800 33,932 74,300 11,500 582 0 0 470 0 0 2,896 0 0 1,774 0 0 105 0 0 130 0 0 1,270 1,700 1,700 1,381 2,000 300 6,100 6,300 6,300 4,725 6,300 0 3,979 4,400 4,400 3,672 4,600 200 355,610 392,800 392,800 317,737 428,230 35,430 76,097 210,000 210,000 13,842 160,000 (50,000) 17,050 0 0 49,822 65,000 65,000 93,147 210,000 210,000 63,664 225,000 15,000 3,437 8,000 8,000 852 14,000 6,000 375 500 500 375 500 0 0 100 100 299 100 0 11,314 10,000 10,000 6,902 8,000 (2,000) 15,126 18,600 18,600 8,428 22,600 4,000 56,200 57,200 57,200 42,900 69,000 11,800 56,200 57,200 57,200 42,900 69,000 11,800 520,082 678,600 678,600 432,729 744,830 66,230 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 53 Department : 6002 - PlanningPermanent Full Time317,730.00101-6002-50101100% - Planning Manager100% - Senior Planner100% - Associate PlannerProfessional Services160,000.00101-6002-60103Professional planningEnvironmental servicesSpecific plan amendmentsGIS consulting servicesHistorical Survey Temporary Agency Services65,000.00101-6002-60125Travel & Training14,000.00101-6002-60320AmountAmerican Planning Association (APA) Conference6,000Planning Commissioners Academy- League of Cities6,000Staff professional development2,000Membership Dues500.00101-6002-60351AmountAmerican Planning Association (APA)500Subscriptions & Publications100.00101-6002-60352International Cost Engineering Council - CEQA booksAdvertising8,000.00101-6002-60450Planning hearing noticesOutreach workshopsCITY OF LA QUINTAGENERAL FUND EXPENSE NOTES FY 2022/23 PROPOSED BUDGET54 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 6003 - Building 50 - Salaries and Benefits 318,855 388,500 413,500 308,343 492,762 79,262 19%101-6003-50101 Permanent Full Time 2,255 10,000 10,000 6,453 15,000 5,000 50%101-6003-50105 Salaries - Overtime 1,926 2,000 2,000 1,611 2,900 900 45%101-6003-50150 Other Compensation 28,730 35,000 35,000 27,158 41,500 6,500 19%101-6003-50200 PERS-City Portion 74,943 104,600 104,600 72,947 148,500 43,900 42%101-6003-50221 Medical Insurance 1,103 0 0 887 0 0 0%101-6003-50222 Vision Insurance 4,289 0 0 4,262 0 0 0%101-6003-50223 Dental Insurance 148 0 0 187 0 0 0%101-6003-50224 Life Insurance 1,481 2,400 2,400 1,666 3,100 700 29%101-6003-50225 Long Term Disability 10,100 10,500 10,500 7,875 12,500 2,000 19%101-6003-50230 Workers Comp Insurance 5,159 5,800 5,800 4,838 7,100 1,300 22%101-6003-50240 Social Security-Medicare 2,151 0 0 1,170 0 0 0%101-6003-50241 Social Security-FICA 34,688 50,000 50,000 18,866 0 (50,000)-100%101-6003-50251 Temporary 50 - Salaries and Benefits Totals:485,828 608,800 633,800 456,261 723,362 89,562 14% 60 - Contract Services 92,067 140,000 290,000 147,278 290,000 0 0%101-6003-60118 Plan Checks 60 - Contract Services Totals:92,067 140,000 290,000 147,278 290,000 0 0% 62 - Maintenance & Operations 629 3,000 3,000 1,681 3,000 0 0%101-6003-60320 Travel & Training 215 700 700 215 700 0 0%101-6003-60351 Membership Dues 100 200 200 0 3,000 2,800 1,400%101-6003-60352 Subscriptions & Publications 0 600 600 0 600 0 0%101-6003-60420 Operating Supplies 37 1,000 1,000 0 1,000 0 0%101-6003-60425 Supplies - Field 1,121 2,000 2,000 282 2,000 0 0%101-6003-60690 Uniforms 62 - Maintenance & Operations Totals:2,102 7,500 7,500 2,178 10,300 2,800 37% 69 - Internal Service Charges 93,600 95,400 95,400 71,550 138,000 42,600 45%101-6003-98110 Information Tech Charges 44,400 68,100 68,100 51,075 129,700 61,600 90%101-6003-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:138,000 163,500 163,500 122,625 267,700 104,200 64% 6003 - Building Totals:717,997 919,800 1,094,800 728,342 1,291,362 196,562 18% 318,855 388,500 413,500 308,343 492,762 79,262 2,255 10,000 10,000 6,453 15,000 5,000 1,926 2,000 2,000 1,611 2,900 900 28,730 35,000 35,000 27,158 41,500 6,500 74,943 104,600 104,600 72,947 148,500 43,900 1,103 0 0 887 0 0 4,289 0 0 4,262 0 0 148 0 0 187 0 0 1,481 2,400 2,400 1,666 3,100 700 10,100 10,500 10,500 7,875 12,500 2,000 5,159 5,800 5,800 4,838 7,100 1,300 2,151 0 0 1,170 0 0 34,688 50,000 50,000 18,866 0 (50,000) 485,828 608,800 633,800 456,261 723,362 89,562 92,067 140,000 290,000 147,278 290,000 0 92,067 140,000 290,000 147,278 290,000 0 629 3,000 3,000 1,681 3,000 0 215 700 700 215 700 0 100 200 200 0 3,000 2,800 0 600 600 0 600 0 37 1,000 1,000 0 1,000 0 1,121 2,000 2,000 282 2,000 0 2,102 7,500 7,500 2,178 10,300 2,800 93,600 95,400 95,400 71,550 138,000 42,600 44,400 68,100 68,100 51,075 129,700 61,600 138,000 163,500 163,500 122,625 267,700 104,200 717,997 919,800 1,094,800 728,342 1,291,362 196,562 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 55 Department : 6003 - BuildingPermanent Full Time492,762.00101-6003-50101100% - Building Official 100% - Senior Building Inspector/Plans Examiner (New in FY 22/23)100% - Building Inspector II (2)100% - Building Inspector I100% - Plans ExaminerPlan Checks290,000.00101-6003-60118Consulting services as needed to support plan check reviewservicesTravel & Training3,000.00101-6003-60320CA Building Officials (CALBO)International Code Council certificationsMembership Dues700.00101-6003-60351CA Building Officials (CALBO)International Association of Plumbing and Mechanical Officials(IAPMO)Subscriptions & Publications3,000.00101-6003-60352Updated California Building Code books and other professionalsubscriptionsCITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET56 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 6006 - The Hub 50 - Salaries and Benefits 409,886 477,700 517,700 343,802 570,282 52,582 10%101-6006-50101 Permanent Full Time 0 0 0 24,841 71,500 71,500 0%101-6006-50102 Salaries - Part Time 53 0 0 0 0 0 0%101-6006-50105 Salaries - Overtime 2,752 0 0 2,014 0 0 0%101-6006-50150 Other Compensation 37,299 42,800 42,800 32,999 48,200 5,400 13%101-6006-50200 PERS-City Portion 100,302 146,400 146,400 81,313 198,000 51,600 35%101-6006-50221 Medical Insurance 1,460 0 0 1,042 0 0 0%101-6006-50222 Vision Insurance 6,578 0 0 4,971 0 0 0%101-6006-50223 Dental Insurance 213 0 0 231 0 0 0%101-6006-50224 Life Insurance 1,911 2,700 2,700 1,881 3,600 900 33%101-6006-50225 Long Term Disability 14,100 14,700 14,700 11,025 16,700 2,000 14%101-6006-50230 Workers Comp Insurance 5,944 7,000 7,000 5,345 8,100 1,100 16%101-6006-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:580,499 691,300 731,300 509,464 916,382 185,082 25% 60 - Contract Services 58,440 100,000 110,000 44,945 70,000 (40,000)-36%101-6006-60103 Professional Services 55,587 50,000 50,000 35,441 60,000 10,000 20%101-6006-60125 Temporary Agency Services 60 - Contract Services Totals:114,027 150,000 160,000 80,386 130,000 (30,000)-19% 62 - Maintenance & Operations 0 1,000 1,000 0 0 (1,000)-100%101-6006-60137 Community Special Events 25 2,000 2,000 952 2,000 0 0%101-6006-60320 Travel & Training 125 200 200 150 200 0 0%101-6006-60351 Membership Dues 2,023 4,000 4,000 3,062 4,000 0 0%101-6006-60420 Operating Supplies 3,252 4,000 4,000 0 0 (4,000)-100%101-6006-60450 Advertising 62 - Maintenance & Operations Totals:5,426 11,200 11,200 4,164 6,200 (5,000)-45% 69 - Internal Service Charges 131,000 133,500 133,500 100,125 183,900 50,400 38%101-6006-98110 Information Tech Charges 69 - Internal Service Charges Totals:131,000 133,500 133,500 100,125 183,900 50,400 38% 6006 - The Hub Totals:830,952 986,000 1,036,000 694,139 1,236,482 200,482 19% 409,886 477,700 517,700 343,802 570,282 52,582 0 0 0 24,841 71,500 71,500 53 0 0 0 0 0 2,752 0 0 2,014 0 0 37,299 42,800 42,800 32,999 48,200 5,400 100,302 146,400 146,400 81,313 198,000 51,600 1,460 0 0 1,042 0 0 6,578 0 0 4,971 0 0 213 0 0 231 0 0 1,911 2,700 2,700 1,881 3,600 900 14,100 14,700 14,700 11,025 16,700 2,000 5,944 7,000 7,000 5,345 8,100 1,100 580,499 691,300 731,300 509,464 916,382 185,082 58,440 100,000 110,000 44,945 70,000 (40,000) 55,587 50,000 50,000 35,441 60,000 10,000 114,027 150,000 160,000 80,386 130,000 (30,000) 0 1,000 1,000 0 0 (1,000) 25 2,000 2,000 952 2,000 0 125 200 200 150 200 0 2,023 4,000 4,000 3,062 4,000 0 3,252 4,000 4,000 0 0 (4,000) 5,426 11,200 11,200 4,164 6,200 (5,000) 131,000 133,500 133,500 100,125 183,900 50,400 131,000 133,500 133,500 100,125 183,900 50,400 830,952 986,000 1,036,000 694,139 1,236,482 200,482 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 57 Department : 6006 - The HubPermanent Full Time570,282.00101-6006-50101100% - Hub Manager100% - Permit Technician (6, New Position in FY 22/23)100% - Administrative Assistant Salaries - Part Time71,500.00101-6006-50102100% - Software Program Writer P/TProfessional Services70,000.00101-6006-60103Permit software implementation consultantTemporary Agency Services60,000.00101-6006-60125Temporary administrative assistant support to Design and Development with filing, scanning, back up receptionist duties and mailingsTravel & Training2,000.00101-6006-60320AmountPermit Technician training2,000Membership Dues200.00101-6006-60351AmountTRAKiT membership200CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET58 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 1006 - Finance 50 - Salaries and Benefits 738,310 764,900 764,900 569,557 817,530 52,630 7%101-1006-50101 Permanent Full Time 252 0 0 0 0 0 0%101-1006-50105 Salaries - Overtime 2,224 3,700 3,700 1,275 3,700 0 0%101-1006-50110 Commissions & Boards 3,400 500 500 2,014 0 (500)-100%101-1006-50150 Other Compensation 63,688 69,600 69,600 49,748 69,700 100 0%101-1006-50200 PERS-City Portion 1,874 2,400 2,400 0 0 (2,400)-100%101-1006-50215 Other Fringe Benefits 136,120 186,100 186,100 118,617 220,300 34,200 18%101-1006-50221 Medical Insurance 1,841 0 0 1,402 0 0 0%101-1006-50222 Vision Insurance 7,657 0 0 5,452 0 0 0%101-1006-50223 Dental Insurance 295 0 0 300 0 0 0%101-1006-50224 Life Insurance 3,122 4,300 4,300 3,089 5,000 700 16%101-1006-50225 Long Term Disability 16,400 17,600 17,600 13,200 17,600 0 0%101-1006-50230 Workers Comp Insurance 10,767 11,300 11,300 8,277 11,700 400 4%101-1006-50240 Social Security-Medicare 138 0 0 79 0 0 0%101-1006-50241 Social Security-FICA 50 - Salaries and Benefits Totals:986,090 1,060,400 1,060,400 773,009 1,145,530 85,130 8% 60 - Contract Services 13,006 20,000 20,000 10,796 20,000 0 0%101-1006-60102 Administration 25,205 62,000 62,000 14,338 62,000 0 0%101-1006-60103 Professional Services 38,666 40,000 40,000 29,587 40,000 0 0%101-1006-60104 Consultants 60,325 65,000 65,000 30,500 80,000 15,000 23%101-1006-60106 Auditors 2,541 3,000 3,000 795 3,000 0 0%101-1006-60122 Credit Card Fees 60 - Contract Services Totals:139,743 190,000 190,000 86,016 205,000 15,000 8% 62 - Maintenance & Operations 0 1,500 1,500 0 1,500 0 0%101-1006-60137 Community Engagement 3,300 10,000 10,000 3,533 25,000 15,000 150%101-1006-60320 Travel & Training 2,930 3,000 3,000 2,510 3,500 500 17%101-1006-60351 Membership Dues 2,150 2,200 2,200 1,295 2,200 0 0%101-1006-60352 Subscriptions & Publications 1,059 2,500 2,500 993 2,500 0 0%101-1006-60400 Office Supplies 2,363 5,000 5,000 1,751 5,000 0 0%101-1006-60410 Printing 120 0 0 0 0 0 0%101-1006-60420 Operating Supplies 0 1,000 1,000 0 1,000 0 0%101-1006-60450 Advertising 62 - Maintenance & Operations Totals:11,922 25,200 25,200 10,081 40,700 15,500 62% 69 - Internal Service Charges 166,600 168,500 168,500 126,375 204,600 36,100 21%101-1006-98110 Information Tech Charges 69 - Internal Service Charges Totals:166,600 168,500 168,500 126,375 204,600 36,100 21% 1006 - Finance Totals:1,304,355 1,444,100 1,444,100 995,481 1,595,830 151,730 11% 738,310 764,900 764,900 569,557 817,530 52,630 252 0 0 0 0 0 2,224 3,700 3,700 1,275 3,700 0 3,400 500 500 2,014 0 (500) 63,688 69,600 69,600 49,748 69,700 100 1,874 2,400 2,400 0 0 (2,400) 136,120 186,100 186,100 118,617 220,300 34,200 1,841 0 0 1,402 0 0 7,657 0 0 5,452 0 0 295 0 0 300 0 0 3,122 4,300 4,300 3,089 5,000 700 16,400 17,600 17,600 13,200 17,600 0 10,767 11,300 11,300 8,277 11,700 400 138 0 0 79 0 0 986,090 1,060,400 1,060,400 773,009 1,145,530 85,130 13,006 20,000 20,000 10,796 20,000 0 25,205 62,000 62,000 14,338 62,000 0 38,666 40,000 40,000 29,587 40,000 0 60,325 65,000 65,000 30,500 80,000 15,000 2,541 3,000 3,000 795 3,000 0 139,743 190,000 190,000 86,016 205,000 15,000 0 1,500 1,500 0 1,500 0 3,300 10,000 10,000 3,533 25,000 15,000 2,930 3,000 3,000 2,510 3,500 500 2,150 2,200 2,200 1,295 2,200 0 1,059 2,500 2,500 993 2,500 0 2,363 5,000 5,000 1,751 5,000 0 120 0 0 0 0 0 0 1,000 1,000 0 1,000 0 11,922 25,200 25,200 10,081 40,700 15,500 166,600 168,500 168,500 126,375 204,600 36,100 166,600 168,500 168,500 126,375 204,600 36,100 1,304,355 1,444,100 1,444,100 995,481 1,595,830 151,730 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 59 Department : 1006 - FinancePermanent Full Time817,530.00101-1006-50101 90% - Finance Director (10% Housing Fund)100% - Financial Services Analyst100% - Accounting Manager100% - Accountant100% - Junior Accountant100% - Account Technician (3)100% - Management AssistantAdministration20,000.00101-1006-60102Bank service feesFiscal custodian feesProfessional Services62,000.00101-1006-60103AmountAnnual Budget-at-a-Glance4,000Armored Car Services3,000Financial Advisory Commission Subcommittee Supp5,000OPEB annual third-party valuation, retiree health6,000Pension Plan Review Consulting Services10,000Professional accounting support20,000State Controller's Report - Citywide4,000Third party audits & policy verifications10,000Consultants40,000.00101-1006-60104AmountProperty tax revenue analysis22,000Sales tax revenue analysis18,000Community Engagement1,500.00101-1006-60137Community workshopTravel & Training25,000.00101-1006-60320AmountAnnual GASB update training (4 employees)2,000CSMFO annual conference10,000Incode Training - Financial Software4,000Various half-day classes: CSMFO, GFOA, CAPPO9,000CITY OF LA QUINTAGENERAL FUND EXPENSE NOTES FY 2022/23 PROPOSED BUDGET60 Membership Dues3,500.00101-1006-60351CA Municipal Finance Officers Association (CSMFO)CA Municipal Treasurer Association (CMTA)Government Finance Officers Association (GFOA)CA Assoc. of Public Procurement Officials (CAPPO)UCLA Economic ForecastSubscriptions & Publications2,200.00101-1006-60352Annual Comprehensive Financial Report (ACFR) statistical datareportsPrinting5,000.00101-1006-60410Accounts Payable and Payroll checksBudget and financial reports - covers and tabsFinancial Advisory Commission reportsAdvertising1,000.00101-1006-60450Newspaper advertisements for surplus sales and Request forProposalsCITY OF LA QUINTAGENERAL FUND EXPENSE NOTES FY 2022/23 PROPOSED BUDGET61 THIS PAGE INTENTIONALLY LEFT BLANK 2020/21 Actuals 2021/22 Original Budget 2021/22 Current Budget 2021/22 YTD Activity* 2022/23 Proposed Budget 22/23 vs. Current 21/22 % Change in Budget 1007 - Central Services 50 - Salaries and Benefits 104,946 150,000 150,000 118,900 150,000 0 0%101-1007-50109 Vacation & Sick Leave Buy Back 0 400,000 400,000 0 900,000 500,000 125%101-1007-50115 Contingency for Stafffing 2,008,514 1,477,100 1,477,100 3,593,526 2,241,600 764,500 52%101-1007-50117 PERS - Unfunded Pension Liability 363 0 0 0 0 0 0%101-1007-50180 Natural Disaster - FEMA 1,522 0 0 1,724 0 0 0%101-1007-50240 Social Security-Medicare 33,379 36,000 36,000 22,042 36,000 0 0%101-1007-50243 Employer Contrib Retiree Med PERS 43,827 100,000 100,000 11,991 25,000 (75,000)-75%101-1007-50244 State Unemployment Insurance 50 - Salaries and Benefits Totals:2,192,550 2,163,100 2,163,100 3,748,184 3,352,600 1,189,500 55% 62 - Maintenance & Operations 120 200 200 120 200 0 0%101-1007-60351 Membership Dues 121 1,000 1,000 0 1,000 0 0%101-1007-60401 Operating Supplies 3,160 5,000 5,000 1,994 5,000 0 0%101-1007-60402 Forms, Copier Paper 2,942 8,000 8,000 6,852 8,000 0 0%101-1007-60403 Citywide Supplies 0 1,000 1,000 0 1,000 0 0%101-1007-60405 Miscellaneous Supplies 19,044 25,000 25,000 13,596 25,000 0 0%101-1007-60470 Postage 65,841 55,000 55,000 56,521 60,000 5,000 9%101-1007-60535 Sales Tax Reimbursements 50,000 100,000 250,000 50,000 100,000 (150,000)-60%101-1007-60536 TOT Resort Rebate Program 12,404 13,000 13,000 12,366 13,000 0 0%101-1007-60661 Postage Machine 379 0 0 227 0 0 0%101-1007-60663 Typewriters 62 - Maintenance & Operations Totals:154,011 208,200 358,200 141,676 213,200 (145,000)-40% 64 - Other Expenses 40,291 0 0 0 0 0 0%101-1007-60195 Coronavirus Expenses 64 - Other Expenses Totals:40,291 0 0 0 0 0 0% 68 - Capital Expenses 362,632 0 0 (5,400)0 0 0%101-1007-71050 Buildings 9,128 410,000 613,322 604,525 20,000 (593,322)-97%101-1007-74010 Land Acquisition 68 - Capital Expenses Totals:371,760 410,000 613,322 599,125 20,000 (593,322)-97% 69 - Internal Service Charges 460,000 529,000 529,000 396,750 529,000 0 0%101-1007-91842 Liability Insurance & Claims 22,200 25,500 25,500 19,125 25,500 0 0%101-1007-91843 Property & Crime Insurance 82,800 67,000 67,000 50,250 67,000 0 0%101-1007-91844 Earthquake Insurance 93,600 95,400 95,400 71,550 115,000 19,600 21%101-1007-98110 Information Tech Charges 44,300 67,650 67,650 50,738 85,800 18,150 27%101-1007-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:702,900 784,550 784,550 588,412 822,300 37,750 5% 99 - Transfers Out 6,042,385 6,892,356 19,961,760 3,546,320 9,439,000 (10,522,760)-53%101-1007-99900 Transfers Out 99 - Transfers Out Totals:6,042,385 6,892,356 19,961,760 3,546,320 9,439,000 (10,522,760) -53% 1007 - Central Services Totals:9,503,897 10,458,206 23,880,932 8,623,718 13,847,100 (10,033,832) -42% 104,946 150,000 150,000 118,900 150,000 0 0 400,000 400,000 0 900,000 500,000 2,008,514 1,477,100 1,477,100 3,593,526 2,241,600 764,500 363 0 0 0 0 0 1,522 0 0 1,724 0 0 33,379 36,000 36,000 22,042 36,000 0 43,827 100,000 100,000 11,991 25,000 (75,000) 2,192,550 2,163,100 2,163,100 3,748,184 3,352,600 1,189,500 120 200 200 120 200 0 121 1,000 1,000 0 1,000 0 3,160 5,000 5,000 1,994 5,000 0 2,942 8,000 8,000 6,852 8,000 0 0 1,000 1,000 0 1,000 0 19,044 25,000 25,000 13,596 25,000 0 65,841 55,000 55,000 56,521 60,000 5,000 50,000 100,000 250,000 50,000 100,000 (150,000) 12,404 13,000 13,000 12,366 13,000 0 379 0 0 227 0 0 154,011 208,200 358,200 141,676 213,200 (145,000) 40,291 0 0 0 0 0 40,291 0 0 0 0 0 362,632 0 0 (5,400)0 0 9,128 410,000 613,322 604,525 20,000 (593,322) 371,760 410,000 613,322 599,125 20,000 (593,322) 460,000 529,000 529,000 396,750 529,000 0 22,200 25,500 25,500 19,125 25,500 0 82,800 67,000 67,000 50,250 67,000 0 93,600 95,400 95,400 71,550 115,000 19,600 44,300 67,650 67,650 50,738 85,800 18,150 702,900 784,550 784,550 588,412 822,300 37,750 6,042,385 6,892,356 19,961,760 3,546,320 9,439,000 (10,522,760) 6,042,385 6,892,356 19,961,760 3,546,320 9,439,000 (10,522,760) 9,503,897 10,458,206 23,880,932 8,623,718 13,847,100 (10,033,832) CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2022/23 PROPOSED BUDGET 62 Department : 1007 - Central ServicesContingency for Stafffing900,000.00101-1007-50115- Workforce flexibility - Work within Class and Compensation structure- Manage CalPERS increases- Ensure job rates reflect market ratesPERS - Unfunded Pension Liabi2,241,600.00101-1007-50117Annual minimum CalPERS requirement to long-term pension liability. Based on valuation reports - inflation assumed at 2.5% with discount rate of 7%. Contribution per pension tier is as follows:Tier 1 - Classic $1,220,000Tier 2 - $2,600PEPRA Tier - $19,000Additional Discretionary Payment- $1,000,000State Unemployment Insuranc25,000.00101-1007-50244Membership Dues200.00101-1007-60351Costco membershipSales Tax Reimbursements60,000.00101-1007-60535Eight year sales tax sharing agreement approved on 9/9/2014with One Eleven La Quinta LLC (Hobby Lobby). Quarterly payments of 50% of any sales tax generated by Hobby Lobby,not to exceed $400,000 or 12/31/2022. TOT Resort Rebate Program100,000.00101-1007-60536To promote new tourism activities within the City and encourage citywide participation and innovation proposals; rebate for hotels collecting resort fees up to $50,000 per proposal.Land Acquisition20,000.00101-1007-74010Engineering maps, property survey & title search servicesCITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET63 AmountArt in Public Places - Maintenance/Installation50,000CIP GF - City Hall Capacity Improvements550,000CIP GF - Citywide Drainage Improvements477,000CIP GF - Citywide PMP Street Improvements1,500,000CIP GF - La Quinta Skate Park Conversion133,000CIP GF - Sidewalk & ADA Ramp Improvements75,000Gas Tax Fund - Supplement Operations100,000Law Enforcement Fund - Deceased LQ Officers2,000LLD Fund - Supplement Maint. Operations900,000Measure G - ADA Transition Plan Update150,000Measure G - Hwy 111 Corridor Implementation1,000,000Measure G - La Quinta Skate Park Conversion500,000Measure G - LLD Median Improvements500,000Measure G - Phase II Camera System1,797,000Measure G - Smart Infrastructure Improv.Study250,000Measure G - Sports Complex Lighting Replacement250,000Measure G - Village Parking Lot500,000Measure G - Village Undergrounding Study100,000PARS Supplemental Pension Plan5,000SilverRock Resort600,000CITY OF LA QUINTAGENERAL FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGETTransfers Out9,439,000.00101-1007-9990064 THIS PAGE INTENTIONALLY LEFT BLANK 2020/21Actuals2021/22Original Budget2021/22Current Budget2021/22YTD Activity*2022/23Proposed Budget22/23 vs. Current 21/22% Change in Budget501 - FACILITY & FLEET REPLACEMENT0000 - Undesignated60 - Contract Services26,948000000%501-0000-60213 Interest Expense60 - Contract Services Totals:26,948000000%62 - Maintenance & Operations80,73470,00070,00085,91590,00020,00029%501-0000-60674 Fuel & Oil8,22010,00015,00013,93625,00010,00067%501-0000-60675 Parts, Accessories, and U18,43235,00045,00037,84855,00010,00022%501-0000-60676 Vehicle Repair & Mainten1,0405,0005,00020010,0005,000100%501-0000-60678 Street Sweeper7,81010,00010,0006,25510,00000%501-0000-60679 Motorcycle Repair & Main62 - Maintenance & Operations Totals:116,236130,000145,000144,155190,00045,00031%63 - Insurance12,50013,75013,75010,31213,75000%501-0000-91843 Property & Crime Insuran63 - Insurance Totals:12,50013,75013,75010,31213,75000%68 - Capital Expenses11,0145,0005,00011,46225,00020,000400%501-0000-71020 Furniture14,974100,000100,000179,083180,00080,00080%501-0000-71030 Vehicles, Rentals & Lease0600,000600,000362,912400,000(200,000)-33%501-0000-71031 Vehicles, Purchased040,00040,00033,97440,00000%501-0000-71032 Building Leases70,09450,00050,00040,472230,000180,000360%501-0000-71103 City Bldg Repl/Repair2,002000000%501-0000-71110 Depreciation Expense88,13750,00050,000050,00000%501-0000-71111 Deprec Exp - Mach & Equ64,80125,00025,000025,00000%501-0000-71112 Depreciation Expense - B154,972100,000100,0000100,00000%501-0000-71113 Depreciation Expense - Ve3,3055,0005,00005,00000%501-0000-71114 Depreciation Expense - M11854,00054,00055,999300,000246,000456%501-0000-80100 Machinery & Equipment68 - Capital Expenses Totals:409,4181,029,000 1,029,000683,9011,355,000326,00032%99 - Transfers Out050,000131,964050,000(81,964)-62%501-0000-99900 Transfers Out99 - Transfers Out Totals:050,000131,964050,000(81,964)-62%0000 - Undesignated Totals:565,1021,222,750 1,319,714838,3691,608,750289,03622%- FACILITY & FLEET REPLACEMENT Totals:565,1021,222,750 1,319,714838,3691,608,750289,03622%26,9480000026,9480000080,73470,00070,00085,91590,00020,0008,22010,00015,00013,93625,00010,00018,43235,00045,00037,84855,00010,0001,0405,0005,00020010,0005,0007,81010,00010,0006,25510,0000116,236130,000145,000144,155190,00045,00012,50013,75013,75010,31213,750012,50013,75013,75010,31213,750011,0145,0005,00011,46225,00020,00014,974100,000100,000179,083180,00080,0000600,000600,000362,912400,000(200,000)040,00040,00033,97440,000070,09450,00050,00040,472230,000180,0002,0020000088,13750,00050,000050,000064,80125,00025,000025,0000154,972100,000100,0000100,00003,3055,0005,00005,000011854,00054,00055,999300,000246,000409,4181,029,000 1,029,000683,9011,355,000326,000050,000131,964050,000(81,964)050,000131,964050,000(81,964)565,1021,222,750 1,319,714838,3691,608,750289,036565,1021,222,750 1,319,714838,3691,608,750289,036CITY OF LA QUINTAINTERNAL SERVICE FUND EXPENSE DETAILSFY 2022/23 PROPOSED BUDGET65 Fund: 501 - FACILITY & FLEET REPLACEMENTVehicles, Rentals & Leases180,000.00501-0000-71030City vehicles are leased through EnterpriseCity Bldg Repl/Repair230,000.00501-0000-71103Building repairs Wellness Center kitchen updateMachinery & Equipment300,000.00501-0000-80100Purchase of street sweeperCITY OF LA QUINTAINTERNAL SERVICE FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET66 2020/21Actuals2021/22Original Budget2021/22Current Budget2021/22YTD Activity*2022/23Proposed Budget22/23 vs. Current 21/22% Change in Budget502 - INFORMATION TECHNOLOGY0000 - Undesignated50 - Salaries and Benefits33,66133,30033,30027,63333,354540%502-0000-50101 Permanent Full Time2,4682,9002,9002,0292,500(400)-14%502-0000-50200 PERS-City Portion6,2378,3008,3003,9589,9001,60019%502-0000-50221 Medical Insurance950032000%502-0000-50222 Vision Insurance5300075000%502-0000-50223 Dental Insurance120017000%502-0000-50224 Life Insurance13520020014930010050%502-0000-50225 Long Term Disability49250050040150000%502-0000-50240 Social Security-Medicare50 - Salaries and Benefits Totals:43,63145,20045,20034,29546,5541,3543%60 - Contract Services324,138450,000450,000303,278480,00030,0007%502-0000-60104 Consultants24,20065,00065,00041,93965,00000%502-0000-60108 Technical4,2446,0006,0008,7076,00000%502-0000-60300 Maintenance Agreements383,551600,000881,927464,242900,00018,0732%502-0000-60301 Software Licenses60 - Contract Services Totals:736,1321,121,000 1,402,927818,1671,451,00048,0733%62 - Maintenance & Operations0500500050000%502-0000-60320 Travel & Training2,8145,0005,0007,0295,00000%502-0000-60420 Operating Supplies42,92580,00080,00029,95580,00000%502-0000-60662 Copiers62 - Maintenance & Operations Totals:45,73985,50085,50036,98585,50000%66 - Utilities34,81630,00030,00032,73035,0005,00017%502-0000-61300 Telephone - Utilities45,06050,00050,00033,34650,00000%502-0000-61301 Cell/Mobile Phones42,31740,00075,00044,80275,00000%502-0000-61400 Cable/Internet - Utilities66 - Utilities Totals:122,193120,000155,000110,879160,0005,0003%68 - Capital Expenses000298000%502-0000-71020 Furniture(104,575)20,00020,0007,6050(20,000)-100%502-0000-71042 D & D, Software Enhance7,94810,00010,0008,9900(10,000)-100%502-0000-71043 Comm. Resources, Softwa3,6005,0005,00000(5,000)-100%502-0000-71045 Finance, Software Enhanc14,1215,0005,0002,5900(5,000)-100%502-0000-71047 City Clerk, Software Enha17,39310,00083,00016,1460(83,000)-100%502-0000-71048 Public Works, Software En0000100,000100,0000%502-0000-71049 Software Implementation28,8785,0005,00005,00000%502-0000-71110 Depreciation Expense64,42660,00060,000060,00000%502-0000-71111 Deprec Exp - Mach & Equ35,36370,00070,000070,00000%502-0000-71115 Depreciation Expense - So22,262150,000230,00027,394200,000(30,000)-13%502-0000-80100 Machinery & Equipment49,47580,00080,00042,27580,00000%502-0000-80103 Computers68 - Capital Expenses Totals:138,892415,000568,000105,297515,000(53,000)-9%0000 - Undesignated Totals:1,086,5871,786,700 2,256,627 1,105,6222,258,0541,4270%33,66133,30033,30027,63333,354542,4682,9002,9002,0292,500(400)6,2378,3008,3003,9589,9001,6009500320053000750012001700135200200149300100492500500401500043,63145,20045,20034,29546,5541,354324,138450,000450,000303,278480,00030,00024,20065,00065,00041,93965,00004,2446,0006,0008,7076,0000383,551600,000881,927464,242900,00018,073736,1321,121,000 1,402,927818,1671,451,00048,0730500500050002,8145,0005,0007,0295,000042,92580,00080,00029,95580,000045,73985,50085,50036,98585,500034,81630,00030,00032,73035,0005,00045,06050,00050,00033,34650,000042,31740,00075,00044,80275,0000122,193120,000155,000110,879160,0005,00000029800(104,575)20,00020,0007,6050(20,000)7,94810,00010,0008,9900(10,000)3,6005,0005,00000(5,000)14,1215,0005,0002,5900(5,000)17,39310,00083,00016,1460(83,000)0000100,000100,00028,8785,0005,00005,000064,42660,00060,000060,000035,36370,00070,000070,000022,262150,000230,00027,394200,000(30,000)49,47580,00080,00042,27580,0000138,892415,000568,000105,297515,000(53,000)1,086,5871,786,700 2,256,627 1,105,6222,258,0541,427502 - INFORMATION TECHNOLOGY Totals:0%1,086,5871,086,5871,786,7001,786,700 2,256,6272,256,627 1,105,6221,105,62222,258,054,258,0541,4271,427CITY OF LA QUINTAINTERNAL SERVICE FUND EXPENSE DETAILSFY 2022/23 PROPOSED BUDGET67 Fund: 502 - INFORMATION TECHNOLOGYPermanent Full Time33,354.00502-0000-5010140% - Management Analyst (60% Housing Fund)Consultants480,000.00502-0000-60104Contracted information technology servicesTechnical65,000.00502-0000-60108Cable services, wireless access points, modems, and virtual serversTravel & Training500.00502-0000-60320Fraud prevention, firewall, encryption, coding, and other IT-related trainingsOperating Supplies5,000.00502-0000-60420Small equipment such as keyboards, computer mouses, cables, conference room TV's, speakers, docking stations, etc. Machinery & Equipment200,000.00502-0000-80100Upgrades to recording and audio visual equipment and other miscellaneous upgrades for phones and work stationsCITY OF LA QUINTAINTERNAL SERVICE FUND EXPENSE NOTES FY 2022/23 PROPOSED BUDGET68 2020/21Actuals2021/22Original Budget2021/22Current Budget2021/22YTD Activity*2022/23Proposed Budget22/23 vs. Current 21/22% Change in Budget503 - PARK EQUIP & FACILITY FUND0000 - Undesignated68 - Capital Expenses51,791255,000255,000244,795545,000290,000114%503-0000-71060 Parks101 000 000%503-0000-71110 Depreciation Expense519,249000000%503-0000-71122 Depreciation Expense - C68 - Capital Expenses Totals:571,140255,000255,000244,795545,000290,000114%99 - Transfers Out87,986000000%503-0000-99900 Transfers Out99 - Transfers Out Totals:87,986000000%0000 - Undesignated Totals:659,126255,000255,000244,795545,000290,000114%03 - PARK EQUIP & FACILITY FUND Totals:659,126255,000255,000244,795545,000290,000114%51,791255,000255,000244,795545,000290,000101 000 00519,24900000571,140255,000255,000244,795545,000290,00087,9860000087,98600000659,126255,000255,000244,795545,000290,000659,126255,000255,000244,795545,000290,000CITY OF LA QUINTAINTERNAL SERVICE FUND EXPENSE DETAILSFY 2022/23 PROPOSED BUDGET69 Fund: 503 - PARK EQUIP & FACILITY FUNDParks545,000.00503-0000-71060AmountPark Improvements160,000Playground and fitness equipment, benches145,000Shade canopy replacements240,000CITY OF LA QUINTAINTERNAL SERVICE FUND EXPENSE NOTES FY 2022/23 PROPOSED BUDGET70 2020/21Actuals2021/22Original Budget2021/22Current Budget2021/22YTD Activity*2022/23Proposed Budget22/23 vs. Current 21/22% Change in Budget504 - INSURANCE FUND1010 - Insurance50 - Salaries and Benefits1,331000000%504-1010-50221 Medical Insurance50 - Salaries and Benefits Totals:1,331000000%60 - Contract Services0500500050000%504-1010-60320 Travel & Training0200200020000%504-1010-60351 Membership Dues60 - Contract Services Totals:0700700070000%62 - Maintenance & Operations202 000 000%504-1010-60400 Office Supplies2,33512,50012,5004,40912,50000%504-1010-60420 Operating Supplies62 - Maintenance & Operations Totals:2,53712,50012,5004,40912,50000%63 - Insurance402,044446,400446,400446,349419,000(27,400)-6%504-1010-60441 Liability Insurance02,5002,50002,50000%504-1010-60442 Claims120,255144,800144,800144,771160,00015,20010%504-1010-60443 Property Insurance3,6933,7003,7001,8004,0003008%504-1010-60446 Crime Insurance173,602180,000180,000184,515200,00020,00011%504-1010-60447 Earthquake Insurance161,549146,200146,200146,173185,40039,20027%504-1010-60452 Workers Comp Premium63 - Insurance Totals:861,143923,600923,600923,608970,90047,3005%1010 - Insurance Totals:865,011936,800936,800928,018984,10047,3005%504 - INSURANCE FUND Totals:865,011936,800936,800928,018984,10047,3005%1,331000001,33100000050050005000020020002000070070007000202 000 002,33512,50012,5004,40912,50002,53712,50012,5004,40912,5000402,044446,400446,400446,349419,000(27,400)02,5002,50002,5000120,255144,800144,800144,771160,00015,2003,6933,7003,7001,8004,000300173,602180,000180,000184,515200,00020,000161,549146,200146,200146,173185,40039,200861,143923,600923,600923,608970,90047,300865,011936,800936,800928,018984,10047,300865,011936,800936,800928,018984,10047,300CITY OF LA QUINTAINTERNAL SERVICE FUND EXPENSE DETAILSFY 2022/23 PROPOSED BUDGET71 Fund: 504 - INSURANCE FUNDTravel & Training500.00504-1010-60320California Joint Powers Insurance Authority (CJPIA) Public Agency Risk Management Association (PARMA)Membership Dues200.00504-1010-60351Public Agency Risk Management Association (PARMA) membersOperating Supplies12,500.00504-1010-60420Ergonomic assessments and first aid kit supplies/maintenanceCITY OF LA QUINTAINTERNAL SERVICE FUND EXPENSE NOTESFY 2022/23 PROPOSED BUDGET72 THIS PAGE INTENTIONALLY LEFT BLANK73 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Members of the Financial Advisory Commission FROM: Claudia Martinez, Finance Director DATE: June 1, 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. AUDIT & FINANCIAL REPORTING •Single Audit for federal funds for fiscal year 2020/21 is currently in process. •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 6/30/2022. 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 •FY 2022/23 General Fund Operating Budget Subcommittee (Commissioners Anderson, Dorsey, Mast) o The FY 2022/23 budget process is underway by City staff and management. The subcommittee had their second meeting on Thursday, May 26, 2022 and discussed updated revenue projections, expenditure requests, and proposed uses of Measure G sales tax revenue. •Reserve Policy Update o Coordination with the City Clerk’s office o Selection of sub-committee at a future meeting in fiscal year 2022/23 DEPARTMENTAL REPORT ITEM NO. 1 PERSONNEL UPDATES Effective Monday, May 16, 2022, the City welcomed Virginia Ortega as the Accounting Manager in the Finance Department. Virginia comes to the City with over 20 years of local government finance experience and an extensive background in budgeting, financial statement preparation and reporting, annual audits, policies and procedures, and supervising multiple employees. It is important to note the items mentioned in this update are in addition to the daily functions of the Finance Department, which include, but are not limited to, staff report writing/review, payroll, accounts payable, accounts receivable, revenue processing, journal entries, capital accounting, project accounting, purchasing, investing, cash/treasury management, bank reconciliations, budgeting, research and analysis, staff training and development, and general financial support for all City departments. POWER POINTS FAC SPECIAL MEETING June 1, 2022 06/01/2022 1 Financial Advisory Commission Special Meeting 06/01/2022 1 2 06/01/2022 2 Financial Advisory Commission Special Meeting 06/01/2022 Business Session Item No. 2 Discuss Fiscal Year 2022/23 Preliminary Proposed Budget and Approve Allocation of Measure G Sales Tax Revenue BUDGET OVERVIEW Focus on General Fund and Internal Service Funds Revenues & Expenses Changes from FY 21/22 Discuss assumptions and major variances Measure G Summary 3 4 06/01/2022 3 General Fund Revenues Top 3 Revenue Sources: Sales Tax revenue $24.5 million Transient Occupancy Tax (TOT) $12.5 million Property Tax revenue $9.9 million General Fund Revenues 2021/22 Original 2021/22 Current 2022/23 Proposed Change Current V. Proposed % Change Taxes 45,957,000 51,157,000 54,646,700 3,489,700 7% License & Permits 2,252,000 3,122,000 2,823,200 (298,800) -10% Intergovernmental 8,251,100 8,454,422 7,653,000 (801,422) -9% Charges for Services 876,010 876,010 1,081,100 205,090 23% Fines & Assessment 294,000 609,000 462,000 (147,000) -24% Other/Misc. 1,174,100 1,174,100 1,155,100 (19,000) -2% Total Revenues 58,804,210 65,392,532 67,821,100 2,428,568 4% General Fund Expenses •Overall increase to all divisions due to: –Salary & Benefits: annual step increases and CalPERS rates –Contract Services: inflationary impacts –Internal Service charges: software updates, operating & machinery costs, and park upgrades General Fund Expenditures 2021/22 Original 2021/22 Current 2022/23 Proposed Change Current V. Proposed City Council 302,200 302,200 351,400 49,200 City Manager 1,076,000 1,076,000 1,177,540 101,540 Marketing & Community Relations 1,325,900 1,425,900 1,632,128 206,228 City Attorney 696,000 796,000 796,000 - City Clerk 625,200 635,200 1,257,526 622,326 Human Resources 376,000 411,000 495,698 84,698 Police 17,855,100 17,865,100 18,185,900 320,800 Fire 7,660,800 8,550,486 8,851,872 301,386 Community Resourc es Admin. 808,500 828,500 880,480 51,980 Wellness Center Operations 597,900 627,900 682,102 54,202 Recreational Programs & Events 908,300 1,078,300 1,088,734 10,434 Code Compliance/Animal Control 1,506,320 1,506,320 1,663,996 157,676 Parks Maintenance 2,530,900 2,580,900 3,047,222 466,322 Public Buildings 1,321,200 1,321,200 1,390,052 68,852 Public Works Administration 739,900 739,900 794,862 54,962 Public Works Dev. Services 431,200 448,200 512,960 64,760 Streets 496,600 498,600 754,768 256,168 Engineering Services 761,800 1,101,900 1,020,756 (81,144) Design & Development Admin. 656,200 696,200 756,824 60,624 Planning 678,600 678,600 744,830 66,230 Building 919,800 1,094,800 1,291,362 196,562 The Hub 986,000 1,036,000 1,236,482 200,482 Finance 1,444,100 1,444,100 1,595,830 151,730 Centralized Services 10,458,206 23,880,932 13,847,100 (10,033,832) Total Expenditures 55,162,726 70,624,238 64,056,424 (6,567,814) 5 6 06/01/2022 4 General Fund Expense Detail Division Change from PY City Council $49,200 Medical costs, Annual State of the City/40th City Birthday City Manager’s Office $101,540 Salary & Benefits, additional property surveys and waste services, IT allocation Marketing & Community Relations $206,228 Salary & Benefits, addition of events and enhanced promotion, contract rate increases, IT allocation City Attorney No change No anticipated increase in current contract City Clerk $622,326 Salary & Benefits, 2 new positions & temporary services, transfer of STVR program, upcoming election, possible STVR measure, IT allocation Human Resources $84,698 Salary & Benefits, conversion of P/T to F/T position, IT allocation Police $320,800 Estimated increase from the County of Riverside (2%) Fire $301,386 Estimated increase from the County of Riverside (4%) General Fund Expense Detail Division Change from PY Community Resources Admin $51,980 Salary & Benefits, 2‐1‐1 hotline (based on population), IT allocation Wellness Center Operations $54,202 Salary & Benefits, IT & Facility/Fleet allocation Rec Programs & Events $10,434 Salary & Benefits, special event insurance & security, IT allocation Code Compliance/Animal Control $157,676 Salary & Benefits, return of neighborhood improvements on hold due to STVR program, animal shelter contract increase, operational expenses increase, IT & Facility/Fleet allocation Parks Maintenance $466,322 Salary & Benefits, citywide landscape maintenance contract and utilities with addition of two parks, ISF allocations including park upgrades Public Buildings $68,852 Salary & Benefits, citywide janitorial services with addition of two parks and utilities, IT allocation Public Works Admin $54,962 Salary & Benefits, IT allocation Public Works Dev. Services $64,760 Salary & Benefits, contract services, map/plan checking, IT allocation 7 8 06/01/2022 5 General Fund Expense Detail Division Change from PY Streets $256,168 Salary & Benefits, operational expenses, professional services to assist staff with ongoing maintenance & operations, IT allocation Engineering Services ($81,144) Salary & Benefits, street sign replacement, vacant city land dust control, IT allocation Design & Development Admin $60,624 Salary & Benefits, travel & training, ISF allocations Planning $66,230 Salary & Benefits, temporary GIS services, travel & training, IT allocation Building $196,562 Salary & Benefits including 1 new position, ISF allocations The Hub $200,482 Salary & Benefits, ISF allocations Finance $151,760 Salary & Benefits, GASB 87 Leases implementation, travel & training, IT allocation Centralized Services ($10,033,832) Contingency for staffing , additional discretionary payment for outstanding pension obligation Internal Service Funds •Support the City’s internal operations •Majority of revenues derived from the General Fund based on employee & equipment allocations Fund Current FY 21/22 Proposed FY 22/23 Variance Equipment Replacement 1,319,714 1,608,750 289,036 Information Technology 2,256,627 2,258,054 1,427 Park Equipment 255,000 545,000 290,000 Insurance Fund 936,800 984,100 47,300 4,768,141 5,395,904 627,763 INTERNAL SERVICE FUNDS SUMMARY 9 10 06/01/2022 6 General Fund Summary Revenues 67,821,100$ Less Operating/CIP Expenses (64,056,424) Preliminary Budget Surplus 3,764,676 Less Measure G Reserves (3,353,000) BUDGET SURPLUS 411,676$ GENERAL FUND FY 2022/23 PROPOSED BUDGET Measure G Sales Tax Revenue 13,500,000$ Police Services (5,100,000) Capital Improvements (5,047,000) Available for Appropriation 3,353,000$ MEASURE G SALES TAX SUMMARY Measure G Summary Historical Summary Year Revenue Operational Capital Reserves 2016/17 1,462,650$ 1,462,650 - 2017/18 9,967,657$ 300,000 8,583,307 1,084,350 2018/19 10,958,118$ 2,950,000 3,624,343 4,383,775 2019/20 10,310,526$ 2,750,000 5,424,382 2,136,144 2020/21 12,594,389$ 4,545,000 525,000 7,524,389 2021/22 12,300,000$ 5,163,000 10,226,417 (3,089,417) 2022/23 13,500,000$ 5,100,000 5,047,000 3,353,000 Total 71,093,340$ 20,808,000$ 34,893,099$ 15,392,241$ 11 12 06/01/2022 7 FY 2022/23 Budget Schedule •June 1 – Financial Advisory Commission •June 7 – City Council – Study Session #2 •June 8 – Housing Commission •June 21 – City Council, Adoption For the latest budget information visit: www.laquintaca.gov/business/finance/budget QUESTIONS & DISCUSSION 13 14 06/01/2022 8 The Financial Advisory Commission’s Next Regular Quarterly Meeting is August 10, 2022 15