2023 08 09 FAC MinutesCALL TO ORDER
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,
Finance Technician Batuta, Administrative Technician 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).
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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,
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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.
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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, Administrative Technician/Commission Secretary
City of La Quinta, California
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