2022/23 Measure G Sales Tax Annual ReportANNUAL MEASURE G SALES TAX OVERSIGHT C. Qa�,ra
REPORT FOR FISCAL YEAR ENDED JUNE 30, 2023 c�
OVERVIEW
The Financial Advisory Commission (FAC) provides oversight of Measure G tax
revenue. This Annual Measure G Sales Tax Oversight Report covers the fiscal year
beginning July 1, 2022 through June 30, 2023. Exhibit A includes a detailed summary
of all Measure G activity.
Measure G is a 1% transactions tax applied to sales of taxable goods and is part of the
overall 8.75% sales tax rate in the City. It applies to goods transferred at the point of
sale (businesses within La Quinta City limits), and to goods purchased in other
jurisdictions that are delivered to addresses within the City.
Measure G revenue continues to help La Quinta thrive and is integral to the financial
health of the City. These funds assist in realizing the Sacred Values of La Quinta now
and in the future: Health and Wellness, High Quality Aesthetics, a Vibrant and Safe
Community, a Visually Beautiful City, and Cultural Diversity, to continue being
recognized as the "The Gem of the Desert".
REPORT HIGHLIGHTS
• Since inception, about $27 million or 35% of Measure G funds have been
allocated to improving citywide infrastructure and public recreational facilities.
• Public safety services are a priority of La Quinta and have been supported with
27% of Measure G funds.
• Fiscally responsible budgeting, prudent long-term financial projections, funds
oversight, and financial transparency have strengthened the City's reserves with
Measure G funds since the implementation of Measure G in April 2017.
FISCAL YEAR 2022/23 REVENUES
Total Measure G sales tax revenue for fiscal year 2022/23 was $16.1 million, which was
greater than the $15.5 million initially anticipated when budgeted. While most general
consumer goods purchases experienced a slight decline due to higher prices,
restaurants and hotels continued to see growth as consumers prioritized eating out,
specifically takeout, delivery, drive-through, and curbside sales. In addition, increased
labor costs and a spike in lumber prices resulted in an increase in revenue from
building -construction supplies.
Stronger than anticipated fiscal year-end Measure G sales tax revenues are a result of
steady consumer spending and demonstrate that La Quinta residents and visitors
continue to support our local economy.
REVENUES SINCE INCEPTION
The chart below summarizes Measure G revenue received from fiscal years 2016/17
through 2022/23. Steady household spending and tourism have shielded our economy
from recession. Sales tax has grown, but is behind the spike in growth seen during the
pandemic recovery. Looking ahead, challenges such as higher labor costs and lower
consumer spending may impact sales taxes into fiscal year 2023/24.
REVENUES SINCE INCEPTION
$77 MILLION
$18
$16
$14
$12
o $10
$8
$6
$4
$$2
16/17 17/18 18/19 19/20 20/21 21/22 22/23
Fiscal Year
FISCAL YEAR 2022/23 USES
Operational expenses and capital improvements for fiscal year 2022/23 were prioritized,
while also including a prudent reserve allocation for operational flexibility in the budget.
By allocating a portion of Measure G revenue to reserves, the City intends to continue
to preserve and support public safety and capital projects in the future.
USES SINCE INCEPTION
Annually, the City hosts a community workshop to either affirm or determine the
following year's budget priorities. Staff then evaluates funding options such as grants,
interagency cost sharing, and use of reserves. Public safety services have been a
community priority since before Measure G, and with the support of this additional
revenue, the City has been able to maintain the public safety service levels the
community desires.
The chart below summarizes the uses, since the inception, of Measure G funds.
Approximately, $27 million, or 35% of these funds are for projects to improve citywide
infrastructure and public recreational facilities.
USES SINCE INCEPTION
$77 MILLION
Public Safety
$21 M
Reserves
$29M
Infrastructure
Recreation Improvements
$5M $22M
• Public Safety use reflects the City's continuing commitment to provide all
residents with a safe living environment.
• Infrastructure improvement projects have included numerous road repairs, street
striping projects, drainage improvements to avoid street flooding, an investment
in Highway 111 (a crucial commercial corridor for our City where a majority of
sales taxes are generated), an overhaul of landscape medians north of Highway
111, and the design of an updated corporate yard with administrative and crew
quarters. The recent advanced funding of about $7.5 million for the Dune Palms
Bridge Project allocated in fiscal year 2021/22 was subsequently approved for
federal reimbursements. The advanced funding was returned to Reserves in
fiscal year 2022/23.
• Recreation projects have included funding for the new X -Park near La Quinta
High School, the SilverRock event site, design of a new future Village Art Plaza
Promenade connected to the La Quinta Museum, Fritz Burns Park
improvements, and the Sports Complex lighting replacement.
• Measure G reserves reflect fiscal responsibility and allow for operational flexibility
by ensuring cash is available for public safety services and capital improvement
projects when they are most efficient to complete.
The chart below summarizes citywide infrastructure improvements and recreational
projects, totaling about $27 million funded with Measure G revenues.
Infrastructure Improvements and Recreational
City Facilities/Infrastructure
� $1.4M Projects
Public Safety
$1.8M
Highway 111
$3.2M
Roads/Bridges
$2 OM
Drainage
$3.4M
Parks
$5.4M
Landscaping !
$9.8M
$2 $4 $8 $10
Millions
LOOKING AHEAD
Due to the volatility of the economy, the past few years have presented challenges in
some revenue streams. Fortunately, these have been offset by significant growth in
sales tax. This revenue has allowed the City to look ahead to address critical needs
such as road improvements, equipment replacement, and maintenance of City facilities.
The City will also explore the use of Measure G reserve funds to prioritize additional
funding intended to accelerate Capital Improvement Program projects, including for
major street improvements.
MFnsIlRF r. RAr.KrRn11ND AND COMPLIANCE SUMMARY
Voters passed Ballot Measure G in November 2016. Measure G provides a permanent
one percent transactions and use tax, effective April 1, 2017, which is fully allocated to
the City of La Quinta and protected from State takeaways.
All Measure G revenues shall be used in accordance with the ballot measure for costs
including police protection, projects such as parks, streets, landscaping, and flood
mitigation, programs attracting businesses, youth/senior services, sports recreation
programs, and preserving property values and quality of life. This report confirms all
Measure G tax revenues are properly recorded and are being used in accordance with
the ballot measure.
City Council, management, and staff thank all residents for their continuing support and
investment in our community.
Prior oversight reports and information on Measure G are located online at
https://www.laguintaca.gov/business/tax-measure. Questions regarding this report or
the use of Measure G funds may be directed to the Finance Department by calling 760-
777-7150 or by email at finance@laquintaca.gov.
Fiscal Year (FY)
16/17
Actual
$ 1,462,650
17/18
Actual
9,967,657
18/19
Actual
10,958,118
19/20
Actual
10,310,526
20/21
Actual
12,594,389
21/22
Actual
15,615,802
22/23
Actual
16,088,087
Public Safety Fund
850,000
TOTAL $ 76,997,229
rla�al
Year
)16/17
17/18
18/19
19/20
Project Description
Operational
Eisenhower Dr. Retention Basin MMI
X -Park Funding
2,129,613
Public Safety Fund
300,000
North La Quinta Landscape Improvements
Citywide Drainage Enhancements
411,013
La Quinta Village Road Diet Project
1,000,000
X -Park Funding
3,703,369
Alongi Building Improvements
310,000
SilverRock Event Site/ Alongi Building/ Retention Basin
Measure G Reserves 2017/18
275,000
Public Safety Fund
850,000
Public Safety Contract Services
2,100,000
Citywide Drainage Enhancements
1,408,356
North La Quinta Landscape Improvements
1,000,000
SilverRock Event Site
350,000
Measure G Reserves 2018/19
7,468,061
Public Safety Contract Services
2,750,000
Corporate Yard Administration/Crew Quarters
Highway 111 Corridor Improvements
North La Quinta Landscape Improvements
Village Art Plaza Promenade
Measure G Reserves 2019/20
Public Safety Contract Services
4,545,000
X -Park Landscaping
Highway 111 Corridor Improvements
Measure G Reserves 2020/21
Public Safety Contract Services
5,163,000
Landscape Renovation Improvements
Highway 111 Corridor Improvements
Fritz Burns Park Improvements
Allocate Advance Dune Palms Bridge Funding
Measure G Reserves 2021/22
Public Safety Contract Services
5,100,000
Landscape Renovation Improvements
Sports Complex Lighting
Village Underground Utilities Feasibility
ADA Transition Plan Update
Village Parking Lot
Phase II Public Safety Camera System
Smart Infrastructure Feasibility
Highway 111 Corridor Improvements
Dune Palms Bridge Advance Funding Reimbursemen
Measure G Reserves 2022/23
TOTAL
$ 20,808,000
27%
Capital Reserves
750,00
712,650 -
1,802,576
2,407,373
1,972,158
147,350
800,000
1,453,850
500,000
300,000
100,000
150,000
500,000
1,797,000
250,000
1,000,000
7,468,061)
26,975,038 $
35%
13,859,148 1
29,214,191 $
38%
EXHIBIT A
Total by Year
462,650
9,967,657
10,958,118
10,310,526
12,594,389
15,615,802
16,088,087
76,997,229
1,084,350
194,730
2,129,613
1,300,000
4,383,775
411,013
1,000,000
3,703,369
310,000
2,136,144
275,000
250,000
7,524,389
1,408,356
1,000,000
350,000
7,468,061
226,385
500,000
300,000
100,000
150,000
500,000
1,797,000
250,000
1,000,000
7,468,061)
26,975,038 $
35%
13,859,148 1
29,214,191 $
38%
EXHIBIT A
Total by Year
462,650
9,967,657
10,958,118
10,310,526
12,594,389
15,615,802
16,088,087
76,997,229
City of La Quints CONSENT CALENDAR ITEM NO. 15
CITY COUNCIL MEETING: December 19, 2023
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2022/23 MEASURE G SALES
TAX COMPLIANCE REPORT
RECOMMENDATION
Receive and file fiscal year 2022/23 Measure G Sales Tax Compliance Report.
EXECUTIVE SUMMARY
• Measure G revenue for fiscal year 2022/23 was $16,088,087 and the Measure G
reserve balance as of June 30, 2023, was $29,214,191.
• The Financial Advisory Commission (FAC) provides oversight of Measure G
revenue and prepares an annual Measure G Sales Tax Oversight Report (Report)
to ensure Measure G revenue is used in compliance with the ballot initiative.
• At the FAC's special meeting on December 20, 2023, the full Commission will
formally receive, review, and file this Report.
FISCAL IMPACT - None
BACKGROUND/ANALYSIS
In accordance with the Measure G ballot measure, the FAC provides oversight of
Measure G funds. This Measure G Report was prepared by the Finance Department with
assistance from FAC members (Commissioners Batavick and Mast). This Report will be
presented to the FAC on December 20, 2023; and subject to their review, will be received
and filed on this date, with an update to the City's website.
The Annual Measure G Sales Tax Oversight Report for Fiscal Year 2022/23 (Attachment
1) covers the period from July 1, 2022 through June 30, 2023, and provides a summary
of the Measure G revenue and expenditures for the fiscal year, as well as an inception -
to -date summary.
41TERNATIVES
Council may request additional information before filing this Report.
179
Prepared by: Claudia Martinez, Finance Director
Approved by: Jon McMillen, City Manager
Attachment: 1. Annual Measure G Sales Tax Oversight Report for Fiscal Year Ended
June 30, 2023
180