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2023 10 04 FAC Special Meeting0aiAr(V� GEM of the DESERT — 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, October 4, 2023, starting at 4:00 p.m.; at La Quinta City Hall located at 78495 Calle Tampico, La Quinta, CA 92253 for the following purpose: ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. AVENUE 48 ARTS AND MUSIC LINE PROJECT UPDATE BY COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS EXECUTIVE DIRECTOR TOM KIRK CONSENT CALENDAR 1. APPROVE MEETING MINUTES DATED AUGUST 9, 2023 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JULY 31, 2023 BUSINESS SESSION 1. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO AUDIT AND FORMULATE THE ANNUAL MEASURE G SALES TAX OVERSIGHT COMPLIANCE REPORT FOR FISCAL YEAR 2022/23 DEPARTMENTAL REPORTS 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Dated- September 28, 2023 Attest - Jessica Delgado, Commission Secretary /s/ Keith Dorsey Keith Dorsey, Chairperson DECLARATION OF POSTING I, Jessica Delgado, Commission Secretary, do hereby declare that the foregoing notice for the La Quinta Financial Advisory Commission Special Meeting of October 4, 2023, was posted on the outside entry to the Council Chamber at 78495 Calle Tampico, and on the bulletin board at 51321 Avenida Bermudas on September 28, 2023 Jessica Delgado, Commission Secretary FINANCIAL ADVISORY COMMISSION Page 1 of 1 SPECIAL MEETING Dated- September 28, 2023 OCTOBER 4, 2023 t(V Quixt(v GEM of the DESERT — — Financial Advisory Commission agendas and staff reports are now available on the City's web page: wwwdaguintaca.gov SPECIAL MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL COUNCIL CHAMBER 78495 Calle Tampico, La Quinta WEDNESDAY, OCTOBER 4, 2023, AT 4:00 P.M. ****************************** Members of the public may listen to this meeting by tuning -in live via http:Hlaguinta.12milesout.com/video/live. CALL TO ORDER ROLL CALL: Commissioners: Anderson, Batavick, Dorsey, Mast, Mills, Way and Chair Dorsey VACANCY: One (1) PLEDGE OF ALLEGIANCE PUBLIC COMMENTS — INSTRUCTIONS Members of the public may address the Commission on any matter listed or not listed on the agenda as follows: WRITTEN PUBLIC COMMENTS can be provided either in-person during the meeting by submitting 15 copies to the Commission Secretary, it is requested that this takes place prior to the beginning of the meeting; or can be emailed in advance to JDelgado(@LaQuintaCA.gov, no later than 12:00 p.m., on the day of the meeting. Written public comments will be distributed to the Commission, made public, and will be incorporated into the public record of the meeting, but will not be read during the meeting unless, upon the request of the Chair, a brief summary of public comments is asked to be reported. If written public comments are emailed, the email subject line must clearly state "Written Comments" and should include: 1) full name, 2) city of residence, and 3) subject matter. VERBAL PUBLIC COMMENTS can be provided in-person during the meeting by completing a "Request to Speak" form and submitting it to the Commission Secretary; it is requested that this takes place prior to the beginning of the meeting. Please limit your comments to three (3) minutes (or approximately 350 words). Members of the public shall be called upon to speak by the Chair. FINANCIAL ADVISORY COMMISSION AGENDA Page 1 of 4 OCTOBER 4, 2023 SPECIAL MEETING In accordance with City Council Resolution No. 2022-028, a one-time additional speaker time donation of three (3) minutes per individual is permitted; please note that the member of the public donating time must: 1) submit this in writing to the Commission Secretary by completing a "Request to Speak" form noting the name of the person to whom time is being donated to, and 2) be present at the time the speaker provides verbal comments. Verbal public comments are defined as comments provided in the speakers' own voice and may not include video or sound recordings of the speaker or of other individuals or entities, unless permitted by the Chair. Public speakers may elect to use printed presentation materials to aid their comments; 15 copies of such printed materials shall be provided to the Commission Secretary to be disseminated to the Commission, made public, and incorporated into the public record of the meeting; it is requested that the printed materials are provided prior to the beginning of the meeting. There shall be no use of Chamber resources and technology to display visual or audible presentations during public comments, unless permitted by the Chair. All writings or documents, including but not limited to emails and attachments to emails, submitted to the City regarding any item(s) listed or not listed on this agenda are public records. All information in such writings and documents is subject to disclosure as being in the public domain and subject to search and review by electronic means, including but not limited to the City's Internet website and any other Internet Web -based platform or other Web -based form of communication. All information in such writings and documents similarly is subject to disclosure pursuant to the California Public Records Act [Government Code § 7920.000 et seq.]. TELECONFERENCE ACCESSIBILITY — INSTRUCTIONS Teleconference accessibility may be triggered in accordance with AB 2449 (Stats. 2022, Ch. 285), codified in the Brown Act [Government Code § 54953], if a member of the Commission requests to attend and participate in this meeting remotely due to `just cause" or "emergency circumstances, " as defined, and only if the request is approved. In such instances, remote public accessibility and participation will be facilitated via Zoom Webinar as detailed at the end of this Agenda. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the Commission on any matter not listed on the agenda pursuant to the "Public Comments — Instructions" listed above. The Commission values your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by the Brown Act [Government Code § 54954.2(b)]. CONFIRMATION OF AGENDA ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS AVENUE 48 ARTS AND MUSIC LINE PROJECT UPDATE BY COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS EXECUTIVE DIRECTOR TOM KIRK CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. APPROVE MEETING MINUTES DATED AUGUST 9, 2023 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JULY 31, 2023 FINANCIAL ADVISORY COMMISSION AGENDA Page 2 of 4 OCTOBER 4, 2023 SPECIAL MEETING BUSINESS SESSION PAGE 1. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO AUDIT AND 14 FORMULATE THE ANNUAL MEASURE G SALES TAX OVERSIGHT COMPLIANCE REPORT FOR FISCAL YEAR 2022/23 STUDY SESSION — None DEPARTMENTAL REPORTS PAGE 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES 15 COMMISSIONERS' ITEMS ADJOURNMENT The La Quinta Financial Advisory Commission next quarterly meeting is on November 8, 2023, commencing at 4:00 p.m. at the La Quinta City Hall Council Chamber, 78495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Jessica Delgado, Secretary of the Financial Advisory Commission of the City of La Quinta, do hereby declare that the foregoing Agenda for the Commission special meeting of October 4, 2023 was posted on the City's website, near the entrance to the Council Chamber at 78495 Calle Tampico and the bulletin board at 51321 Avenida Bermudas, on September 28, 2023. DATED: September 28, 2023 Jessica Delgado, Commission Secretary City of La Quinta, California FINANCIAL ADVISORY COMMISSION AGENDA Page 3 of 4 OCTOBER 4, 2023 SPECIAL MEETING Public Notices • Agenda packet materials are available for public inspection: 1) at the Clerk's Office at La Quinta City Hall, located at 78495 Calle Tampico, La Quinta, California 92253; and 2) on the City's website at https://www.laguintaca.gov/our-city/city-government/boards-and-commissions/financial-advisory- commission, in accordance with the Brown Act [Government Code § 54957.5; AB 2647 (Stats. 2022, Ch. 971)]. • The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please contact Commission Secretary at (760) 777-7150, 24 -hours in advance of the meeting and accommodations will be made. • If background material is to be presented to the Commission during a Commission meeting, please be advised that 15 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. *** TELECONFERENCE PROCEDURES — PURSUANT TO AB 2449*** APPLICABLE ONLY WHEN TELECONFERENCE ACCESSIBILITY IS IN EFFECT Verbal public comments via Teleconference — members of the public may attend and participate in this 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/they to speak on the item(s) requested. Please note — members of the public must unmute themselves when prompted upon being recognized by the Chair, in order to become audible to the Commission and the public. Only one person at a time may speak by teleconference and only after being recognized by the Chair. ZOOM LINK: https://us06web.zoom.us/m/82853067939 Meeting ID: 898 3998 4651 Or join by phone: (253) 215 —8782 Written public comments — can be provided in person during the meeting or emailed to JDelgado LaQuintaCA.gov any time prior to the adjournment of the meeting, and will be distributed to the Commission, made public, incorporated into the 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 the Committee can accommodate such request. FINANCIAL ADVISORY COMMISSION AGENDA Page 4 of 4 OCTOBER 4, 2023 SPECIAL MEETING CALL TO ORDER CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY AUGUST 9, 2023 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 Anderson, Batavick, Dorsey, Mast, Way, and Chair Mills ABSENT: Commissioner Luettjohann STAFF PRESENT: Finance Director Martinez, Principal Management Analyst Hallick, Account Technician Batuta, Management Assistant Delgado, and Finance Manager Ortega PLEDGE OF ALLEGIANCE Commissioner Way led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None CONFIRMATION OF AGENDA — Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS — None CONSENT CALENDAR ITEMS 1. APPROVE MEETING MINUTES DATED JUNE 7, 2023 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MAY 31, 2023 CONSENT CALENDAR ITEM NO. 2 — Discussion The Commission and staff discussed the Non -General Fund County Government Tax Revenue for Debt Service listed in the amount of $15,001,818 under top five revenue/income sources for May, on page 2 of the staff report. Motion — A motion was made and seconded by Commissioners Batavick/Dorsey to approve the Consent Calendar, as submitted. Motion passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Luettjohann). FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 4 AUGUST 9, 2023 BUSINESS SESSION 1. RECEIVE AND FILE THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE YEAR ENDED JUNE 30, 2022 Finance Director Martinez and Finance Manager Ortega presented the staff report, which is on file in the Finance Department. The Commission discussed the SilverRock's (SRR) major infrastructure investments; SRR general improvements and operating costs; and preparing a Popular Financial Report, which is a condensed summary of the ACFR. Senior Manager Lauryn Stapleton with Eide Bailly, LLC (EB), auditing firm for the City — provided an overview of EB's audit purview and scope, noted that the auditors provided an unmodified opinion, which is the highest level; and explained and new Governmental Accounting Standard Board (GASB) provisions pertaining to GASB No. 87, Leases, found in Note 1 to the financial statements on page 44 of the ACFR. The Commission inquired about the timeline for completing the ACFR. Staff said that the standard reporting requirement is six months from the end of the fiscal year and that due to new implementations required by GASB and turnover in staff, staff has requested an extension in the two prior fiscal years The Commission inquired if there have been any inquiries from the public on the ACFR. Staff said none were received; staff encourages public comment and feedback on the ACFR. Discussion followed on the City's internal controls over financial reporting that was identified for accounting entry adjustments. Motion — A motion was made and seconded by Commissioners Dorsey/Way to receive and file the Annual Comprehensive Financial Report for the year ended June 30, 2022, as submitted. Motion passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Luettjohann). 2. APPOINT FINANCIAL ADVISORY COMMISSIONER CHAIRPERSON AND VICE -CHAIRPERSON FOR FISCAL YEAR 2023/24 Finance Director Martinez presented the staff report, which is on file in the Finance Department. Chair Mills nominated Commissioners Dorsey and Anderson for Chairperson and Vice - Chairperson, respectively, and took a roll call vote. Motion — A motion was made and seconded by Commissioners Way/Mast to appoint Commissioners Dorsey and Anderson to serve as Chairperson and Vice -Chairperson, FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 AUGUST 9, 2023 respectively, for fiscal year 2023/24. Motion passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Luettjohann). 3. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO REVIEW RESPONSES TO THE CITY'S REQUEST FOR PROPOSALS (RFP) FOR AUDITING SERVICES Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission and staff discussed the RFP review details and timeline. Commissioners Dorsey and Anderson expressed their willingness to participate on the subcommittee for the review of RFP responses for auditing services. Motion — A motion was made and seconded by Commissioners Way/Batavick to appoint Commissioners Dorsey and Anderson to serve on the subcommittee to review responses to the City's request for proposal for auditing services. Motion passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Luettjohann). 4. RECEIVE AND FILE FOURTH QUARTER FISCAL YEAR 2022/23 TREASURY REPORTS FOR APRIL, MAY, AND JUNE 2023 Principal Management Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission and staff discussed staff time involved in managing investment funds, staff's treasury knowledge and experience; and structure and process for purchasing new investments. Motion —A motion was made and seconded by Commissioners Mast/Anderson to receive and file the fourth quarter fiscal year 2022/23 treasury reports for April, May, and June, 2023. Motion passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Luettjohann). Principal Management Analyst Hallick asked the Commission if they would like to continue to have the quarterly treasury report presented as a business item as it is usually presented as a consent calendar item. The Commission concurred. STUDY SESSION 1. DISCUSS THE CITY'S OUTSTANDING PENSION OBLIGATIONS Finance Director Martinez and City Consultant, Dan Matusiewicz, Senior Public Finance Consultant with Govinvest, presented the staff report, which is on file in the Finance Department. FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 AUGUST 9, 2023 Mr. Matusiewicz and the Commission discussed interest savings cost for 2021, 2022, and 2023 valuation years; non -liquid CalPERS holding allocations; and CalPERS actuarial assumptions and investment returns. DEPARTMENTAL REPORTS — All reports are on file in the Finance Department. 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Finance Director Martinez provided an update on current and upcoming Finance Department projects. She announced that Executive Director Tom Kirk of the Coachella Valley Association of Governments (CVAG) will provide the Commission with an update on the CV Link Arts and Music Line project at a special Commission meeting on October 4t", 2023. 2. FIRST QUARTER 2023 (JANUARY -MARCH) SALES TAX UPDATE FOR THE CITY OF LA QUINTA Chair Dorsey inquired if City consultant HDL Companies (HDL) shared sales tax data from other cities. Principal Management Analyst Hallick said that HDL cannot share other cities sales tax data as it is considered private data. COMMISSIONERS' ITEMS — None ADJOURNMENT There being no further business, it was moved and seconded by Commissioner Dorsey/Mast to adjourn this meeting at 6:03 p.m. Motion passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Luettjohann). Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California FINANCIAL ADVISORY COMMISSION MINUTES Page 4 of 4 AUGUST 9, 2023 City of La Quinta CONSENT CALENDAR ITEM NO. 2 FINANCIAL ADVISORY COMMISSION MEETING: October 4, 2023 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JULY 31, 2023 RECOMMENDATION Receive and file revenue and expenditure report dated July 31, 2023. EXECUTIVE SUMMARY • The report summarizes the City's year-to-date (YTD) revenues and period expenditures for July 2023 (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 2023 for fiscal year 2023/24. Current Total Budget — represents original adopted budgets plus any Council approved budget amendments from throughout the year. The 2022/23 operating and Capital Improvement Project carryovers to 2023/24 will be processed after the year-end audit is completed. Period Activit v — represents actual revenues received and expenditures outlaid in the reporting month. Fiscal Activit v — 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. July 2023 Revenues Comparison to 2022 Percent of Percent of MTD YTD Budget YTD Budget General Fund (GF) $ 608,220 $ 608,220 0.78% $ 403,605 0.59% All Funds $ 1,572,521 $ 1,572,521 1.27% $ 1,356,929 1.28% (')Coachella Valley Association of Governments (CVAG), Southern California Association of Governments (SCAG), LAFCO, and Costar commercial real estate analytics. 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, Principal Management Analyst Approved by: Claudia Martinez, Finance Director Attachment: 1. Revenue and Expenditure Report for July 31, 2023 July 2023 Expenditures Comparison to 2022 Non -General Fund Percent of Zoning Change Mitigation Fees Percent of 117,235 MTD YTD Budget STVR Registration Fee YTD Budget General Fund $ 1,209,477 $ 1,209,477 1.66% $ 611,972 0.95% Payroll (GF) $ 822,505 $ 822,505 6.14% $ 358,965 2.60% All Funds $ 3,312,057 $ 3,312,057 2.80% $ 2,677,657 2.60% (')Coachella Valley Association of Governments (CVAG), Southern California Association of Governments (SCAG), LAFCO, and Costar commercial real estate analytics. 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, Principal Management Analyst Approved by: Claudia Martinez, Finance Director Attachment: 1. Revenue and Expenditure Report for July 31, 2023 Top Five Revenue/Income Sources for Jul General Fund Non -General Fund Zoning Change Mitigation Fees $ 117,235 Allocated Interest $ 405,663 STVR Registration Fee $ 75,500 SilverRock Green Fees $ 91,813 Burrtec Admin Cost Reimbursement $ 66,614 Housing Authority Rent Revenue $ 91,706 Building Plan Check Fees $ 39,684 Non -allocated Interest (Pension Trust) $ 59,725 Administrative Citations $ 31,808 1 Second Trust Deed Payments $ 52,119 Log Five Expenditures/Outlays for Jul General Fund Non -General Fund Visit Greater Palm Springs $ 97,348 Liability Insurance $ 395,165 Membership Dues(i) $ 90,036 Workers Comp Insurance $ 269,483 Parks Landscape Maintenance $ 72,154 Earthquake Insurance $ 242,000 Parks Utilities - Water $ 12,695 Property Insurance $ 187,527 Credit Card Fees $ 11,953 Housing Authority Rental Expenses $ 167,167 (')Coachella Valley Association of Governments (CVAG), Southern California Association of Governments (SCAG), LAFCO, and Costar commercial real estate analytics. 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, Principal Management Analyst Approved by: Claudia Martinez, Finance Director Attachment: 1. Revenue and Expenditure Report for July 31, 2023 i CALIFORNIA Fund 101 -GENERAL FUND 105 - DISASTER RECOVERY FUND 201- GAS TAX FUND 202 - LIBRARY & MUSEUM FUND 203 - PUBLIC SAFETY FUND (MEAS 210 - FEDERAL ASSISTANCE FUND 212 - SLESA (COPS) FUND 215 - LIGHTING & LANDSCAPING F 220 - QUIMBY FUND 221- AB 939 - CALRECYCLE FUND 223 - MEASURE A FUND 225 - INFRASTRUCTURE FUND 226 - EMERGENCY MANAGEMENT 227 - STATE HOMELAND SECURIT) 230 - CASp FUND, AB 1379 231- SUCCESSOR AGCY PA 1 RORF 235 - SO COAST AIR QUALITY FUN 241- HOUSING AUTHORITY 243 - RDA LOW -MOD HOUSING FL 247 - ECONOMIC DEVELOPMENT 1 249 - SA 2011 LOW/MOD BOND FI 250 - TRANSPORTATION DIF FUNC 251- PARKS & REC DIF FUND 252 - CIVIC CENTER DIF FUND 253 - LIBRARY DEVELOPMENT DIF 254 - COMMUNITY & CULTURAL C 255 - STREET FACILITY DIF FUND 256 - PARK FACILITY DIF FUND 257 - FIRE PROTECTION DIF 259 - MAINTENANCE FACILITIES D 270 - ART IN PUBLIC PLACES FUNC 275 - LQ PUBLIC SAFETY OFFICER 299 - INTEREST ALLOCATION FUN[ 310 - LQ FINANCE AUTHORITY DEE 401- CAPITAL IMPROVEMENT PR( 405 - SA PA 1 CAPITAL IMPRV FUN 501- FACILITY & FLEET REPLACEM 502 - INFORMATION TECHNOLOG' 503 - PARK EQUIP & FACILITY FUN 504 - INSURANCE FUND 601- SILVERROCK RESORT 602 - SILVERROCK GOLF RESERVE 760 -SUPPLEMENTAL PENSION PL 761- CERBT OPEB TRUST 762 - PARS PENSION TRUST Report Total: ATTACHMENT 1 For Fiscal: 2023/24 Period Ending: 07/31/2023 Revenue Summary Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Used 78,478,100 78,478,100 608,220 608,220 -77,869,880 0.78% 15,000 15,000 0 0 -15,000 0.00% 2,458,600 2,458,600 0 0 -2,458,600 0.00% 2,922,000 2,922,000 300 300 -2,921,700 0.01% 2,500 2,500 0 0 -2,500 0.00% 156,000 156,000 0 0 -156,000 0.00% 101,500 101,500 0 0 -101,500 0.00% 2,992,000 2,992,000 0 0 -2,992,000 0.00% 50,000 50,000 0 0 -50,000 0.00% 70,000 70,000 0 0 -70,000 0.00% 2,028,000 2,028,000 0 0 -2,028,000 0.00% 500 500 0 0 -500 0.00% 12,500 12,500 0 0 -12,500 0.00% 5,000 5,000 0 0 -5,000 0.00% 20,500 20,500 1,392 1,392 -19,108 6.79% 0 0 53 53 53 0.00% 55,000 55,000 0 0 -55,000 0.00% 1,401,500 1,401,500 343,825 343,825 -1,057,675 24.53% 30,000 30,000 0 0 -30,000 0.00% 20,000 20,000 7,901 7,901 -12,099 39.50% 36,000 36,000 0 0 -36,000 0.00% 1,520,000 1,520,000 12,027 12,027 -1,507,973 0.79% 751,500 751,500 6,318 6,318 -745,182 0.84% 501,500 501,500 3,690 3,690 -497,810 0.74% 100,000 100,000 1,191 1,191 -98,809 1.19% 252,500 252,500 2,868 2,868 -249,632 1.14% 1,000 1,000 0 0 -1,000 0.00% 100 100 0 0 -100 0.00% 151,500 151,500 1,107 1,107 -150,393 0.73% 101,000 101,000 939 939 -100,061 0.93% 154,000 154,000 7,000 7,000 -147,000 4.55% 2,500 2,500 0 0 -2,500 0.00% 0 0 405,663 405,663 405,663 0.00% 1,100 1,100 0 0 -1,100 0.00% 17,950,700 17,950,700 0 0 -17,950,700 0.00% 1,500 1,500 0 0 -1,500 0.00% 1,685,000 1,685,000 0 0 -1,685,000 0.00% 2,256,708 2,256,708 2,545 2,545 -2,254,163 0.11% 470,000 470,000 0 0 -470,000 0.00% 1,362,230 1,362,230 0 0 -1,362,230 0.00% 5,277,950 5,277,950 107,757 107,757 -5,170,193 2.04% 87,000 87,000 0 0 -87,000 0.00% 6,000 6,000 0 0 -6,000 0.00% 20,000 20,000 0 0 -20,000 0.00% 100,000 100,000 59,725 59,725 -40,275 59.73% 123,608,488 123,608,488 1,572,521 1,572,521 -122,035,967 1.27% 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. Page 1 of 3 For Fiscal: 2023/24 Period Ending: 07/31/2023 Expenditure Summary 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. Page 2 of 3 Variance Original Current Period Fiscal Favorable Percent Fund Total Budget Total Budget Activity Activity (Unfavorable) Used 101- GENERAL FUND 72,828,750 72,828,750 1,209,477 1,209,477 71,619,273 1.66% 201- GAS TAX FUND 2,802,400 2,802,400 44,318 44,318 2,758,082 1.58% 202 - LIBRARY & MUSEUM FUND 2,240,160 2,240,160 20,032 20,032 2,220,128 0.89% 210 - FEDERAL ASSISTANCE FUND 156,300 156,300 0 0 156,300 0.00% 212 - SLESA (COPS) FUND 100,000 100,000 0 0 100,000 0.00% 215 - LIGHTING & LANDSCAPING F 3,186,915 3,186,915 130,346 130,346 3,056,569 4.09% 221- AB 939 - CALRECYCLE FUND 150,000 150,000 2,802 2,802 147,198 1.87% 223 - MEASURE A FUND 1,865,000 1,865,000 0 0 1,865,000 0.00% 226 - EMERGENCY MANAGEMENT 12,000 12,000 9,750 9,750 2,250 81.25% 227 - STATE HOMELAND SECURITI 5,000 5,000 0 0 5,000 0.00% 230 - CASp FUND, AB 1379 5,500 5,500 0 0 5,500 0.00% 235 - SO COAST AIR QUALITY FUN 54,000 54,000 1,633 1,633 52,367 3.02% 241- HOUSING AUTHORITY 1,596,340 1,596,340 399,142 399,142 1,197,198 25.00% 243 - RDA LOW -MOD HOUSING FL 250,000 250,000 0 0 250,000 0.00% 247 - ECONOMIC DEVELOPMENT 1 31,500 31,500 1,850 1,850 29,650 5.87% 249 - SA 2011 LOW/MOD BOND FI 250,000 250,000 0 0 250,000 0.00% 250 -TRANSPORTATION DIFFUNC 550,000 550,000 0 0 550,000 0.00% 251- PARKS & REC DIF FUND 650,000 650,000 0 0 650,000 0.00% 253 - LIBRARY DEVELOPMENT DIF 15,000 15,000 0 0 15,000 0.00% 259 - MAINTENANCE FACILITIES D 180,000 180,000 0 0 180,000 0.00% 270 - ART IN PUBLIC PLACES FUNC 233,000 233,000 13,109 13,109 219,891 5.63% 310 - LQ FINANCE AUTHORITY DEE 1,100 1,100 0 0 1,100 0.00% 401- CAPITAL IMPROVEMENT PR( 17,950,700 17,950,700 537 537 17,950,163 0.00% 501- FACILITY & FLEET REPLACEM 1,448,750 1,448,750 8,313 8,313 1,440,437 0.57% 502 - INFORMATION TECHNOLOG' 3,082,620 3,082,620 120,224 120,224 2,962,396 3.90% 503 - PARK EQUIP & FACILITY FUN 2,242,200 2,242,200 2,788 2,788 2,239,412 0.12% 504 - INSURANCE FUND 1,118,000 1,118,000 1,095,975 1,095,975 22,025 98.03% 601- SILVERROCK RESORT 5,034,993 5,034,993 236,347 236,347 4,798,646 4.69% 760 -SUPPLEMENTAL PENSION PL 12,850 12,850 12,833 12,833 17 99.87% 761- CERBT OPEB TRUST 1,800 1,800 0 0 1,800 0.00% 762 - PARS PENSION TRUST 30,000 30,000 2,579 2,579 27,421 8.60% Report Total: 118,084,878 118,084,878 3,312,057 3,312,057 114,772,821 2.80% 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. Page 2 of 3 Fund Descriptions Fund # Name Notes The primary fund of the City used to account for all revenue and expenditures of the City; a broad 101 General Fund range of municipal activities are provided through this fund. Accounts for use of one-time federal funding designed to deliver relief to American workers and aid in 105 Disaster Recovery Fund the economic recovery iin the wake of COVID-19. The American Rescue Plan Act (ARPA) was passed by Congress in 2021 to provide fiscal recovery funds to state and local governments. 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 Countv. 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. Assemblv Bill (AB) 1379 and Senate Bill (SB) 1186. Successor Agency (SA) Project Area (PA) 1 Redevelopment Obligation Retirement Fund (RORF) for 231 Successor Agency PA 1 RORF Fund Redevelopment Property Tax Trust Fund (RPTTF) taxes received for debt service payments on recoanized obligations of the former RedevelODment Aaencv (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 Aaencv (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 rei)avments (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 and transfers 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. 259 Maintenance Facilities DIF Fund Developer impact fees collected for specific public improvements - maintenance facilities. 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 reauirements. 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. Page 3 of 3 BUSINESS SESSION ITEM NO. 1 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING October 4, 2023 STAFF REPORT AGENDA TI I APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO AUDIT AND FORMULATE THE ANNUAL MEASURE G SALES TAX OVERSIGHT COMPLIANCE REPORT FOR FISCAL YEAR 2022/23 RECOMMENDATION Appoint two Financial Advisory Commissioners to audit and formulate the annual Measure G Compliance Report for Fiscal Year 2022/23. EXECUTIVE SUMMARY • Measure G, the one percent (1 %) Transactions and Use Tax measure was approved by voters at the November 8, 2016 General Election and subsequently adopted by resolution on December 20, 2016 with an effective date of April 1, 2017. Additional funds are subject to citizen oversight. • Staff recommends the Financial Advisory Commission (FAC) appoint two Commissioners to serve on the sub -committee to verify revenue and expenses associated with Measure G funds. • The sub -committee shall prepare a report and present their findings to the FAC on November 8, 2023, and to City Council on December 5, 2023. BACKGROUND/ANALYSIS The Measure was approved on November 8, 2016 and adopted by resolution on December 20, 2016 with an effective date of April 1, 2017. Additional funds generated by the Measure are subject to citizen oversight. Starting in June 2017, Measure G funds have been received monthly. City staff recommends appointing two Commissioners on the sub -committee. Staff and the sub- committee shall present a report to FAC on November 8, 2023 for discussion and confirmation prior to City Council review and approval on December 5, 2023. Staff anticipates up to two, two-hour meetings during the next month. The review will include the following: 1. A review of revenue received during fiscal year 2022/23 2. A review of approved use of funds for capital projects, reserves, and contract services 3. A review of proposed future uses 4. A review of current funds available for appropriation 5. A review of the proposed FY 2022/23 financial statement balance and disclosure ALTERNATIVES The subcommittee may be comprised of up to three commissioners. Prepared by: Claudia Martinez, Finance Director/City Treasurer DEPARTMENTAL REPORT ITEM NO. 1 City of La Qu i nta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Members of the Financial Advisory Commission FROM: Claudia Martinez, Finance Director DATE: October 4, 2023 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 • Interim Audit for fiscal year 2022/23 conducted from September 11 through September 22 • Citywide Comprehensive Audit for fiscal year 2022/23 will take place from October 23 through November 3 o Year-end entry and audit prep work is well underway • Annual Street and Road Improvement Audit, to be filed with the State Controller's Office, will take place in October • Annual Measure A Local Streets and Roads Audit, to be filed with the Riverside County Transportation Commission, will take place in November COMMITTEE UPDATES • 10 -Year Projection Task Force (Commissioners Anderson, Batavick, and Dorsey) o Conducted initial meeting on January 20, 2023 o Additional meetings to be scheduled in October -November • Auditing Services Selection Committee o Interviews will be scheduled in November • Measure G Sales Tax Oversight Compliance Report for FY 2022/23 o Appointment of sub -committee • Financial Statement and Audit training to be scheduled for entire Commission FAC COMMISSIONER SEAT • Advertisement is expected to start in October and run through January 15, 2024 • Interviews are expected to be held at a February Council meeting 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 POINT FAC SPECIAL MEETING October 4, 2023 PRESENTATION ITEM NO. 1 AVENUE 48 ARTS AND MUSIC LINE PROJECT UPDATE PRESENTED BY COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS EXECUTIVE DIRECTOR TOM KIRK AND PROJECT MANAGER RANDY BOWMAN Financial Advisory Commission Meeting 8/9/2023 , ; rl" TT r 1'i 1-•,�1-Y1� A 1 .77 .I 1 i 7 ARTS 8 MUSIC LINE Mayor Linda Evans "r-�ti��• City of La Quinta 3 CV/LINK CONNECTING THE COACHELLA VALLEY 4 10/4/2023 2 � a n®r- Ar R --- - --- ---- ta 10/4/2023 3 � r f lit f Pro ry Point oar x Promontory 1 Cost to La Quintal I�Qlinu knf5-r� ,uph uJioa� °`Ay y- IoWnSp"p p� rpry Clyq --- CV Link Beef ky SklM,fre Be.,rry erma •�r i•rf.., �COAE. 12 I+WY1n • nes 6Mf SI"b v9 � lyre mn e , e Promontory Point w.e Jeanp wav il.blec,.,. aaconanaeew c� lea�� a�a� it•eorn .-, /Artsd Music Line Jefferson Street and Highway 111 10/4/2023 0 13 14 10/4/2023 7 10/4/2023 CONCRETE PATHWAY DESIGNS SUN ARC } { ORNATE LbLOAEP CANCHEfE PE—N IHS - -l-APPLIED ZONE5 SLIVER ARC ACCENT BEo erirx ]u VNfh 4,EN I II YAni LGN I IHJII r HI INIH L[1N[d(t SYPk1L.EIEs of 1-11mnluSit u4L •PPIr79NELly 4[[CaS SA[Ery wP ewenfa655 T9 VE40wtM4 ENrHv aNP Cf[Ir 101— CHECKER WAVE PEWTER 980 TWOOMHE COLORED CONCAVE DIVIDE &EAWA ASA SUSTAINABLE APPLICATION OEPIAMW THE NEED FOR PAM] SLAVING WAVE STRETCH I PAL.Pmwo Emr 4LIERN4IINO COLO EP CONCRETE SE911ENCE 15 E[7 ySam, li f � - 4 Coachella Connector [Wan Buren]at Sunset Rancfio Las Flares Park - Coachella Design elements 19 MUSIC LINE 20 10/4/2023 10 BIKE SIGNAL�� ®_-_�- 1 21 pa'A 10/4/2023 11 23 MUSIC L 24 NE CONSTRUCTION SCHEDULE 65% Plans t Sep 2023 Environmental Approval t Q2 2024 Plan Approval t Q3 2024 Right of Way Approval + Q4 2024 Begin Construction t Q2 2025 Complete Construction ♦ Q2 2027 10/4/2023 12 25 MUSIC LINL 26 Le pointe Coachella Maio CVAG ATP Grant ------------------- NEXT STEPS Hire Construction Manager Hire Outreach/Education Manager Finalize Design with City 10/4/2023 13 27 10/4/2023 14