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2023 05 10 FAC MinutesFINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, MAY 10, 2023 CALL TO ORDER A regular meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chair Mills. PRESENT: Commissioners Batavick, Luettjohann, Mast, Way, and Chair Mills ABSENT: Commissioners Anderson and Dorsey STAFF PRESENT: Finance Director Martinez, Financial Services Analyst Hallick, Account Technician Batuta, Management Assistant Delgado, City Attorney Bill Ihrke, and City Manager McMillen PLEDGE OF ALLEGIANCE Commissioner Luettjohann led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None CONFIRMATION OF AGENDA — Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS — None CONSENT CALENDAR ITEMS 1. APPROVE SPECIAL MEETING MINUTES DATED APRIL 5, 2023 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED FEBRUARY 28, 2023 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH 31, 2023 4. RECEIVE AND FILE THIRD QUARTER FISCAL YEAR 2023/23 TREASURY REPORTS FOR JANUARY, FEBRUARY, AND MARCH 2O23 The Commission and staff went over the Treasury rates and portfolio returns as listed in Handout No. 1 provided to the staff report for Consent Calendar Item No. 4. Motion — A motion was made and seconded by Commissioners Batavick/Way to approve the Consent Calendar as submitted. Motion passed: ayes — 5, noes — 0, abstain — 0, absent — 2 (Anderson and Dorsey). FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 4 MAY 10, 2023 BUSINESS SESSION 1. APPROVE THE FISCAL YEAR 2023/24 MEETING DATES Finance Director Martinez presented the staff report, which is on file in the Finance Department. Motion — A motion was made and seconded by Commissioners Way/Mast to approve the fiscal year 2023/24 meeting dates. Motion passed: ayes — 5, noes — 0, abstain — 0, absent — 2 (Anderson and Dorsey). 2. APPROVE THE FISCAL YEAR 2023/24 INVESTMENT POLICY (Policy) Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission and staff discussed edits to Appendix D — approved financial institutions and Bank of the West merger with BMO Commercial Bank and guidelines for recertification of the Policy with the California Municipal Treasurers Association (CMTA). Motion — A motion was made and seconded by Commissioners Batavick/Mast to receive and file fiscal year 2021/22 General Fund year-end budget report. Motion passed: ayes — 5, noes — 0, abstain — 0, absent — 2 (Anderson and Dorsey). STUDY SESSION 1. DISCUSS FISCAL YEAR 2023/24 PRELIMINARY PROPOSED BUDGET Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission and staff discussed general fund revenues; general fund variances for maintenance and upgrades to parks; internal service fund expenses; and Measure G reserves allocations. Further discussion followed on Measure G funding appropriations for the following projects: Avenue 48 Art and Music Line, Washington Street Connector to Art and Music Line, Highway 111 Corridor (Corridor), and Highway 111 Event Site. The Commission expressed a safety and security concern for the Washington Street Connector for the Avenue 48 Art and Music Line project; reached a unanimous consensus (five members present) to recommend to Council to reconsider the proposed funding of the Avenue 48 Art and Music Line and Washington Street Connector projects. The Commission agreed there was insufficient time to convey this recommendation to the Council via a letter for Council's consideration of the fiscal year 2023/24 preliminary proposed budget at the May 16, 2023, regular meeting, therefore Chair Mills would attend FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 MAY 10, 2023 on the Commission's behalf (for the five members present) to convey this recommendation in person during public comment. Staff said the Commission's recommendation to oppose funding the two projects would be notated in the meeting minutes, and that Council reviews the meeting minutes for all City Boards and Commission as they are included in Council meeting agenda packets; and suggested two additional meetings to convey this message to council, which are the June 6 or June 20, 2023 Council meetings. City Manager McMillen shared facts and historical information from the Coachella Valley Association of Government (CVAG) past presentations to Council for the Avenue 48 Art and Music Line project; purpose of this project; and mentioned CVAG Executive Director Tom Kirk would be presenting the progress of this project at the next Council meeting on Tuesday, May 16, 2023. The Commission and staff discussed possible undergrounding of utilities infrastructure project and the Measure G funding allocation for the Corridor project, its progress, and upcoming presentation updates. The Commission requested that they be provided with quarterly updates of actual expenditures related to the Corridor project; staff confirmed. The Commission and staff discussed general fund expense details for the City Manger's and the City Attorney's Offices. Commissioner Way provided an update on the fiscal year 2023/24 general fund operating budget subcommittee (Subcommittee) progress and said the Subcommittee's next meeting will be on Thursday, May 11, 2023, at 2:30 p.m. DEPARTMENTAL REPORTS — All reports are on file in the Finance Department. 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Finance Director Martinez presented the staff report, which is on file in the Finance Department. Chair Mills suggested a subcommittee to review Measure G reserves be formed. Finance Director Martinez said staff would incorporate a review of Measure G reserves with the subcommittee appointed to audit and formulate the annual Measure G sales tax oversight compliance report. 2. FOURTH QUARTER 2022 (OCTOBER-DECEMBER) SALES TAX UPDATE FOR THE CITY OF LA QUINTA Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission and staff discussed Measure G sales tax receipts and what drives the amount to be higher than sales tax. FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 MAY 10, 2023 COMMISSIONERS' ITEMS Commissioner Luettjohann announced that he would be leaving the Commission sometime in late Summer or early Fall due to a career promotion requiring him to move out of state; the Commission and staff congratulated Commissioner Luettjohann. ADJOURNMENT There being no further business, it was moved by Commissioner Mast/Batavick to adjourn this meeting at 6:03 p.m. Motion passed: ayes — 5, noes — 0, abstain — 0, absent — 2 (Anderson and Dorsey). Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California FINANCIAL ADVISORY COMMISSION MINUTES Page 4 of 4 MAY 10, 2023