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2024 02 07 FAC.— {a ey-ibe }l_41_RL — Financial Advisory Commission agendas and staff reports are now available on the City's web page: www.laquintaca.gov FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL COUNCIL CHAMBER 78495 Calle Tampico, La Quinta WEDNESDAY, FEBRUARY 7, 2024, AT 4:00 P.M. ****************************** Members of the public may listen to this meeting by tuning -in live via httD://Iaauinta.12milesout.com/video/live. CALL TO ORDER ROLL CALL: Commissioners: Anderson, Batavick, Keihl, Mast, Mills, Way and Chair Dorsey PLEDGE OF ALLEGIANCE 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 at the end of the agenda. 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 — None CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. APPROVE MEETING MINUTES DATED DECEMBER 20, 2023 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED OCTOBER 31, 2023 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED NOVEMBER 30, 2023 BUSINESS SESSION RECEIVE AND FILE FISCAL YEAR 2022/23 GENERAL FUND YEAR-END BUDGET REPORT FINANCIAL ADVISORY COMMISSION AGENDA Page 1 of 4 FEBRUARY 7, 2024 STUDY SESSION — None DEPARTMENTAL REPORTS 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES 2. THIRD QUARTER 2023 (JULY -SEPTEMBER) SALES TAX UPDATE FOR THE CITY OF LA QUINTA COMMISSIONERS' ITEMS ADJOURNMENT The La Quinta Financial Advisory Commission next quarterly meeting is on May 8, 2024, 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 meeting of February 7, 2024, 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 February 2, 2024. DATED: February 2, 2024 Jessica Delgado, Commission Secretary City of La Quinta, California 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 httDS://www.laauintaca.aov/our-citv/citv-aovernment/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. PUBLIC COMMENTS — INSTRUCTIONS Members of the public may address the Commission on any matter listed or not listed on the agenda as follows: FINANCIAL ADVISORY COMMISSION AGENDA Page 2 of 4 FEBRUARY 7, 2024 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(a)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. 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 Web site 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. *** TELECONFERENCE PROCEDURES — PURSUANT TO AB 2449*** APPLICABLE ONLY WHEN TELECONFERENCE ACCESSIBILITY IS IN EFFECT FINANCIAL ADVISORY COMMISSION AGENDA Page 3 of 4 FEBRUARY 7, 2024 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(a)-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 FEBRUARY 7, 2024 CALL TO ORDER CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION iPECIAL MEETIr'` MINUTES WEDNESDAY, DECEMBER 20, 2023 A special meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chair Dorsey. PRESENT: Commissioners Anderson, Batavick, Keihl, Mast, Mills, Way, and Chair Dorsey ABSENT: None PLEDGE OF ALLEGIANCE Commissioner Keihl 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 1. ELECTRICAL SUBSTATION UPGRADE UPDATE City Manager McMillen provided a brief overview of Imperial Irrigation District's (IID) electric supply and delivery system to the Coachella Valley (CV), details on the City of La Quinta substations current state, substation bank upgrades needed and associated costs, possible funding sources, and IID's source of power. Mr. McMillen said that system wide upgrades are needed by IID to keep up with growth in the CV. 2. CULTURAL CAMPUS PROJECT (Project) UPDATE Community Resources Management Analyst Calderon and Public Works Management Analyst Mignogna provided a detailed presentation on Project location; goals and objectives; design details; funding sources; current budget appropriations; construction cost estimates; and campus capacity. 3. NEW COMMISSIONER INTRODUCTION (Added Presentation) Following the presentations Chair Dorsey welcomed new Commissioner Geoffrey Keihl. The Commission and staff shared a brief introduction of their background and experiences. FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 3 DECEMBER 20, 2023 SPECIAL MEETING CONSENT CALENDAR ITEMS 1. APPROVE MEETING MINUTES DATED NOVEMBER 8, 2023 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JUNE 30, 2023 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED SEPTEMBER 30, 2023 Motion — A motion was made and seconded by Commissioners Way/Mills to approve the Consent Calendar as submitted. Motion passed: ayes — 6, noes — 0, abstain — 1 (Keihl). BUSINESS SESSION 1. RECEIVE AND FILE FISCAL YEAR 2022/23 MEASURE G SALES TAX COMPLIANCE REPORT (Report) Finance Director Martinez presented the staff report, which is on file in the Finance Department. Finance Director Martinez thanked the subcommittee, which consisted of Commissioners Batavick and Mast, for their time, recommendations, and thorough review of the Report. The subcommittee provided an overview of the Report review process and their experience. The Commission noted the City's continuous fiscal prudence and healthy financial reserves; discussed reducing the percentage of Measure G reserves by making allocations; and inquired why the report was presented to Council at the December 19, 2024, meeting in advance of presenting it to the Commission. Finance Director Martinez explained the Report is generally presented to Council before year-end and this was Council's last meeting in 2023, and noted every effort is made for the Report to be presented to the Commission prior to Council review, which could not be accommodated this time due to scheduling conflicts with meeting dates for the Commission. Motion — A motion was made and seconded by Commissioners Way/Anderson to receive and file fiscal year 2022/23 Measure G sales tax compliance report as submitted. Motion passed unanimously. 2. APPOINT TWO COMMISSIONERS TO SERVE ON THE FISCAL YEAR 2024/25 GENERAL FUND OPERATING BUDGET SUBCOMMITTEE Finance Director Martinez presented the staff report, which is on file in the Finance Department. Commissioner's Anderson, Dorsey, and Keihl expressed their willingness to serve on the fiscal year 2024/25 general fund operating budget subcommittee. FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 3 DECEMBER 20, 2023 SPECIAL MEETING Motion — A motion was made and seconded by Commissioners Batavick/Way to appoint Commissioner's Anderson, Dorsey, and Keihl to serve on the fiscal year 2024/25 general fund operating budget subcommittee. Motion passed unanimously. 3. RECEIVE AND FILE FIRST QUARTER FISCAL YEAR 2023/24 TREASURY REPORTS FOR JULY, AUGUST, AND SEPTEMBER 2023 Principal Management Analyst Hallick presented the staff report, which is on file in the Finance Department. Principal Management Analyst Hallick gave a brief overview of the City's portfolio allocations, quarterly earnings, treasury rates, and portfolio returns over the last four years. Motion — A motion was made and seconded by Commissioners Mills/Mast to receive and file the first quarter fiscal year 2023/24 treasury reports for July, August, and September 2023. Motion passed unanimously. STUDY SESSION — None DEPARTMENTAL REPORTS — All reports are on file in the Finance Department. 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Staff provided an update on current and upcoming Finance Department projects and City events and explained the Highway 111 Corridor project summary found on page four of Attachment 1. The Commission inquired on the total cost for damages incurred by Hurricane Hiliary in August 2023 and subsequent storm. Finance Director Martinez said that the City is assessing total cost for damages incurred and enumerated some of the major damages caused. COMMISSIONERS' ITEMS — None ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Dorsey/Mills to adjourn this meeting at 6:01 p.m. Motion passed unanimously. Respectfully submitted, Jessica Delgado, Administrative Technician/Commission Secretary City of La Quinta, California FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 3 DECEMBER 20, 2023 SPECIAL MEETING CONSENT CALENDAR ITEM NO. 2 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 7, 2024 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED OCTOBER 31, 2023 RECOMMENDATION Receive and file revenue and expenditure report dated October 31, 2023. EXECUTIVE SUMMARY • The report summarizes the City's year-to-date (YTD) revenues and period expenditures for October 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 Budqet — represents revenue and expenditure budgets the Council adopted in June 2023 for fiscal year (FY) 2023/24. Current Total Budqet — represents original adopted budgets plus any Council approved budget amendments from throughout the year. The FY 2022/23 operating and Capital Improvement Project carryovers to FY 2023/24 will be processed after the year-end audit is completed. 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. General Fund October 2023 Revenues Non -General Fund Comparison to 2022 $ 966,223 Highway Bridge Program (Dune Palms Construction Reimbursement) $ 1,972,448 Sales Tax Percent of 725,567 CVAG (Dune Palms Construction Reimbursement) Percent of Transient Occupancy (Hotel) Tax $ MTD Allocated Interest YTD Budget $ YTD Budget General Fund (GF) $ 3,311,993 $ 8,386,917 10.69% $ 9,437,967 13.81% All Funds $ 7,961,642 $ 17,722,736 14.34% $ 19,450,978 10.94% October 2023 Expenditures Comparison to 2022 Percent of Percent of MTD YTD Budget YTD Budget General Fund $ 3,679,253 $ 9,193,557 12.62% $ 11,098,988 11.10% Payroll (GF) $ 771,448 $ 3,123,714 23.33% $ 5,136,947 37.23% All Funds $ 10,042,690 $ 38,858,214 32.91% $ 34,399,342 16.23% General Fund Top Five Expend itu res/Outlas for October Non -General Fund Measure G Sales Tax $ 966,223 Highway Bridge Program (Dune Palms Construction Reimbursement) $ 1,972,448 Sales Tax $ 725,567 CVAG (Dune Palms Construction Reimbursement) $ 794,818 Transient Occupancy (Hotel) Tax $ 624,069 Allocated Interest $ 657,124 'roperty Tax $ 489,671 SilverRock Green Fees $ 336,368 =ranchise Taxes - Burrlec $ 100,096 Gas Tax $ 266,926 (')CIP Construction: Dune Palms Bridge. (2)CIP Contribution to Other Agencies: Payments to lead agency, City of Indio, on Jefferson Street slurry project and Avenue 50 widening. 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 October 31, 2023 Top Five Expend itu res/Outlas for October General Fund Non -General Fund Sheriff Contract (July and August) $ 2,083,980 Land Acquisition - Hwy 111 & Dune Palms $ 3,583,426 Visit Greater Palm Springs $ 126,226 Capital Improvement Program (CIP) - Construction(') $ 807,850 Parks Maintenance Services $ 80,048 CIP - Contribution to Other Agencies (2) $ 563,053 Parks Landscape Maintenance $ 67,311 SilverRock Maintenance $ 220,641 lMarketing & Tourism Promotions $ 62,007 lSoftware Licenses $ 148,385 (')CIP Construction: Dune Palms Bridge. (2)CIP Contribution to Other Agencies: Payments to lead agency, City of Indio, on Jefferson Street slurry project and Avenue 50 widening. 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 October 31, 2023 ta ow�trcu Lr1LlI COMA 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 237 - SUCCESSOR AGCY PA 1 ADM 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 For Fiscal: 2023/24 Period Ending: 10/31/2023 Revenue Summary Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Used 78,478,100 78,478,100 3,311,993 8,386,917 -70,091,183 10.69% 15,000 15,000 0 -8,794 -23,794 58.63% 2,458,600 2,458,600 266,926 535,524 -1,923,076 21.78% 2,922,000 2,922,000 284 -8,135 -2,930,135 0.28% 2,500 2,500 0 -179 -2,679 7.17% 156,000 156,000 170,610 170,608 14,608 109.36% 101,500 101,500 8,333 7,906 -93,594 7.79% 2,992,000 2,992,000 17,024 16,316 -2,975,684 0.55% 50,000 50,000 0 0 -50,000 0.00% 70,000 70,000 7,876 10,934 -59,066 15.62% 2,028,000 2,028,000 148,023 296,626 -1,731,374 14.63% 500 500 0 -17 -517 3.41% 12,500 12,500 0 0 -12,500 0.00% 5,000 5,000 0 0 -5,000 0.00% 20,500 20,500 1,336 5,023 -15,477 24.50% 0 0 54 13,901 13,901 0.00% 55,000 55,000 0 -75 -55,075 0.14% 0 0 0 -165 -165 0.00% 1,401,500 1,401,500 92,793 744,480 -657,020 53.12% 30,000 30,000 0 -3,375 -33,375 11.25% 20,000 20,000 8,942 33,782 13,782 168.91% 36,000 36,000 0 17,934 -18,066 49.82% 1,520,000 1,520,000 0 24,136 -1,495,864 1.59% 751,500 751,500 9,380 23,654 -727,846 3.15% 501,500 501,500 0 3,315 -498,185 0.66% 100,000 100,000 0 1,191 -98,809 1.19% 252,500 252,500 0 2,000 -250,500 0.79% 1,000 1,000 0 -71 -1,071 7.10% 100 100 0 -7 -107 6.69% 151,500 151,500 0 915 -150,585 0.60% 101,000 101,000 0 1,635 -99,365 1.62% 154,000 154,000 968 16,797 -137,203 10.91% 2,500 2,500 0 -47 -2,547 1.88% 0 0 657,124 2,396,864 2,396,864 0.00% 1,100 1,100 0 0 -1,100 0.00% 17,950,700 17,950,700 2,990,965 2,991,429 -14,959,271 16.66% 1,500 1,500 0 -5 -1,505 0.36% 1,685,000 1,685,000 0 370,024 -1,314,976 21.96% 2,256,708 2,256,708 2,741 771,194 -1,485,514 34.17% 470,000 470,000 0 246,660 -223,340 52.48% 1,362,230 1,362,230 0 339,765 -1,022,465 24.94% 5,277,950 5,277,950 370,656 666,835 -4,611,115 12.63% 87,000 87,000 0 -554 -87,554 0.64% 6,000 6,000 0 -69 -6,069 1.16% 20,000 20,000 0 -81,376 -101,376 406.88% 100,000 100,000 -104,388 -270,764 -370,764 270.76% 123,608,488 123,608,488 7,961,642 17,722,736 -105,885,752 14.34% 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: 10/31/2023 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 3,679,253 9,193,557 63,635,193 12.62% 201- GAS TAX FUND 2,802,400 2,802,400 56,616 408,985 2,393,415 14.59% 202 - LIBRARY & MUSEUM FUND 2,240,160 2,240,160 25,752 111,509 2,128,651 4.98% 210 - FEDERAL ASSISTANCE FUND 156,300 156,300 0 0 156,300 0.00% 212 - SLESA (COPS) FUND 100,000 100,000 5,817 5,817 94,183 5.82% 215 - LIGHTING & LANDSCAPING F 3,186,915 3,186,915 239,232 706,213 2,480,702 22.16% 221- AB 939 - CALRECYCLE FUND 150,000 150,000 29,620 61,128 88,872 40.75% 223 - MEASURE A FUND 1,865,000 1,865,000 0 0 1,865,000 0.00% 226 - EMERGENCY MANAGEMENT 12,000 12,000 0 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% 231- SUCCESSOR AGCY PA 1 RORF 0 0 0 15,000,437 -15,000,437 0.00% 235 - SO COAST AIR QUALITY FUN 54,000 54,000 2,257 5,549 48,451 10.28% 237 - SUCCESSOR AGCY PA 1 ADM 0 0 1,000 2,600 -2,600 0.00% 241- HOUSING AUTHORITY 1,596,340 1,596,340 101,013 739,275 857,065 46.31% 243 - RDA LOW -MOD HOUSING FL 250,000 250,000 0 0 250,000 0.00% 247 - ECONOMIC DEVELOPMENT 1 31,500 31,500 0 15,606 15,894 49.54% 249 - SA 2011 LOW/MOD BOND FI 250,000 250,000 3,583,426 3,583,426 -3,333,426 1,433.37% 250 -TRANSPORTATION DIFFUNC 550,000 550,000 0 400,000 150,000 72.73% 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 233,000 233,000 337 26,925 206,075 11.56% 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 1,580,534 4,712,179 13,238,521 26.25% 501- FACILITY & FLEET REPLACEM 1,448,750 1,448,750 62,308 159,045 1,289,705 10.98% 502 - INFORMATION TECHNOLOG' 3,082,620 3,082,620 209,772 908,551 2,174,069 29.47% 503 - PARK EQUIP & FACILITY FUN 2,242,200 2,242,200 58,264 342,149 1,900,051 15.26% 504 - INSURANCE FUND 1,118,000 1,118,000 3,075 1,105,078 12,922 98.84% 601- SILVERROCK RESORT 5,034,993 5,034,993 401,918 1,336,952 3,698,041 26.55% 760 -SUPPLEMENTAL PENSION PL 12,850 12,850 0 12,833 17 99.87% 761- CERBT OPEB TRUST 1,800 1,800 0 394 1,406 21.88% 762 - PARS PENSION TRUST 30,000 30,000 2,496 10,258 19,742 34.19% Report Total: 118,084,878 118,084,878 10,042,690 38,858,214 79,226,664 32.91% 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 Page 3 of 3 Fund Descriptions 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. 105 Disaster Recovery Fund Accounts for use of one-time federal funding designed to deliver relief to American workers and aid in 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 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, ABI 379 / SBI 186 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 Housinq Authority which is to promote and provide quality affordable housinq. 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 Housinq) and housinq proqrams,. 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 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) I For all pension -related benefits and unfunded liabilities. Page 3 of 3 CONSENT CALENDAR ITEM NO. 3 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 7, 2024 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED NOVEMBER 30, 2023 RECOMMENDATION Receive and file revenue and expenditure report dated November 30, 2023. EXECUTIVE SUMMARY • The report summarizes the City's year-to-date (YTD) revenues and period expenditures for November 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 (FY) 2023/24. Current Total Budget — represents original adopted budgets plus any Council approved budget amendments from throughout the year. The FY 2022/23 operating and Capital Improvement Project carryovers to FY 2023/24 will be processed after the year-end audit is completed. 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 November 2023 Revenues Comparison to 2022 Percent of Percent of MTD YTD Budget YTD Budget General Fund (GF) $ 3,884,996 $ 12,271,913 15.64% $ 12,746,008 18.66% All Funds $ 5,435,762 $ 23,158,498 18.74% $ 23,999,076 13.49% November 2023 Expenditures MTD YTD General Fund $ 3,490,578 $ 12,684,135 Payroll (GF) $ 1,719,562 $ 4,843,276 All Funds $ 6,508,066 $ 45,366,280 e rce nt Budget 17.42% $ 36.17% $ 38.42% $ Comparison to 2022 Percent YTD Budget 13,377,053 13 5,850,453 42 38,352,611 18 (1)CIP Construction: Construction expenses for Dune Palms bridge project - construction and management; pavement rehab projects on Avenues 50, 52 and Fred Waring Drive (2 )Shade structures for X -park, Fritz Burns, and Pioneer parks; park benches and lake pump for SilverRock event site. 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 November 30, 2023 Top Five Revenue/Income Sources for November General Fund Non -General Fund Measure G Sales Tax $ 1,136,836 SilverRock Green Fees $ 480,401 Transient Occupancy (Hotel) Tax $ 1,122,529 Allocated Interest $ 451,639 Sales Tax $ 865,626 Non -Allocated Interest (Pension Trust) $ 285,194 Franchise Tax- Cable Television $ 155,519 Housing Rent Revenue $ 98,885 Property Tax $ 105,816 lGas Tax - SB1 $ 86,550 Top Five Expenditures/Outlays for November General Fund Non -General Fund Sheriff Contract (Sept.) $ 1,114,989 Capital Improvement Program (CIP) - Construction(') $ 1,776,438 Plan Checks $ 128,284 Parks (2) $ 303,761 X -Park Programming $ 101,020 SilverRock Maintenance $ 275,189 Marketing and Tourism Promotions $ 78,799 Housing Rental Expense $ 55,218 Janitorial $ 33,599 Library Maintenance $ 52,225 (1)CIP Construction: Construction expenses for Dune Palms bridge project - construction and management; pavement rehab projects on Avenues 50, 52 and Fred Waring Drive (2 )Shade structures for X -park, Fritz Burns, and Pioneer parks; park benches and lake pump for SilverRock event site. 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 November 30, 2023 ta Q"fra 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 237 - SUCCESSOR AGCY PA 1 ADM 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 For Fiscal: 2023/24 Period Ending: 11/30/2023 Revenue 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 1 of 3 Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Used 78,478,100 78,478,100 3,884,996 12,271,913 -66,206,187 15.64% 15,000 15,000 0 -8,794 -23,794 58.63% 2,458,600 2,458,600 86,550 622,075 -1,836,525 25.30% 2,922,000 2,922,000 210 -7,925 -2,929,925 0.27% 2,500 2,500 0 -179 -2,679 7.17% 156,000 156,000 0 170,608 14,608 109.36% 101,500 101,500 8,333 16,239 -85,261 16.00% 2,992,000 2,992,000 0 16,316 -2,975,684 0.55% 50,000 50,000 0 0 -50,000 0.00% 70,000 70,000 4,101 15,036 -54,964 21.48% 2,028,000 2,028,000 0 296,626 -1,731,374 14.63% 500 500 0 -17 -517 3.41% 12,500 12,500 0 0 -12,500 0.00% 5,000 5,000 0 0 -5,000 0.00% 20,500 20,500 1,416 6,439 -14,061 31.41% 0 0 57 13,957 13,957 0.00% 55,000 55,000 0 -75 -55,075 0.14% 0 0 0 -165 -165 0.00% 1,401,500 1,401,500 98,885 843,366 -558,134 60.18% 30,000 30,000 0 -3,375 -33,375 11.25% 20,000 20,000 7,692 41,474 21,474 207.37% 36,000 36,000 0 17,934 -18,066 49.82% 1,520,000 1,520,000 8,173 32,309 -1,487,691 2.13% 751,500 751,500 28,937 52,591 -698,909 7.00% 501,500 501,500 2,838 6,153 -495,347 1.23% 100,000 100,000 0 1,191 -98,809 1.19% 252,500 252,500 0 2,000 -250,500 0.79% 1,000 1,000 0 -71 -1,071 7.10% 100 100 0 -7 -107 6.69% 151,500 151,500 804 1,719 -149,781 1.13% 101,000 101,000 524 2,160 -98,840 2.14% 154,000 154,000 4,665 21,463 -132,537 13.94% 2,500 2,500 0 -47 -2,547 1.88% 0 0 451,639 2,848,503 2,848,503 0.00% 1,100 1,100 0 0 -1,100 0.00% 17,950,700 17,950,700 0 2,991,429 -14,959,271 16.66% 1,500 1,500 0 -5 -1,505 0.36% 1,685,000 1,685,000 9,500 379,524 -1,305,476 22.52% 2,256,708 2,256,708 2,141 773,335 -1,483,373 34.27% 470,000 470,000 0 246,660 -223,340 52.48% 1,362,230 1,362,230 0 339,765 -1,022,465 24.94% 5,277,950 5,277,950 549,105 1,215,940 -4,062,010 23.04% 87,000 87,000 0 -554 -87,554 0.64% 6,000 6,000 0 -69 -6,069 1.16% 20,000 20,000 0 -81,376 -101,376 406.88% 100,000 100,000 285,194 14,431 -85,569 14.43% 123,608,488 123,608,488 5,435,762 23,158,498 -100,449,990 18.74% 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: 11/30/2023 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 3,490,578 12,684,135 60,144,615 17.42% 201- GAS TAX FUND 2,802,400 2,802,400 51,215 460,200 2,342,200 16.42% 202 - LIBRARY & MUSEUM FUND 2,240,160 2,240,160 76,767 188,276 2,051,884 8.40% 210 - FEDERAL ASSISTANCE FUND 156,300 156,300 0 0 156,300 0.00% 212 - SLESA (COPS) FUND 100,000 100,000 6,736 12,553 87,447 12.55% 215 - LIGHTING & LANDSCAPING F 3,186,915 3,186,915 97,105 803,318 2,383,597 25.21% 221- AB 939 - CALRECYCLE FUND 150,000 150,000 11,406 72,534 77,466 48.36% 223 - MEASURE A FUND 1,865,000 1,865,000 0 0 1,865,000 0.00% 226 - EMERGENCY MANAGEMENT 12,000 12,000 0 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% 231- SUCCESSOR AGCY PA 1 RORF 0 0 0 15,000,437 -15,000,437 0.00% 235 - SO COAST AIR QUALITY FUN 54,000 54,000 2,143 7,692 46,308 14.24% 237 - SUCCESSOR AGCY PA 1 ADM 0 0 0 2,600 -2,600 0.00% 241- HOUSING AUTHORITY 1,596,340 1,596,340 100,774 840,049 756,291 52.62% 243 - RDA LOW -MOD HOUSING FL 250,000 250,000 0 0 250,000 0.00% 247 - ECONOMIC DEVELOPMENT 1 31,500 31,500 3,950 19,556 11,944 62.08% 249 - SA 2011 LOW/MOD BOND FI 250,000 250,000 -1,000 3,582,426 -3,332,426 1,432.97% 250 -TRANSPORTATION DIFFUNC 550,000 550,000 0 400,000 150,000 72.73% 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 1,500 28,425 204,575 12.20% 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 1,844,318 6,556,496 11,394,204 36.53% 501- FACILITY & FLEET REPLACEM 1,448,750 1,448,750 30,795 189,839 1,258,911 13.10% 502 - INFORMATION TECHNOLOG' 3,082,620 3,082,620 13,312 921,863 2,160,757 29.91% 503 - PARK EQUIP & FACILITY FUN 2,242,200 2,242,200 303,761 645,910 1,596,290 28.81% 504 - INSURANCE FUND 1,118,000 1,118,000 887 1,105,965 12,035 98.92% 601- SILVERROCK RESORT 5,034,993 5,034,993 471,366 1,808,318 3,226,675 35.92% 760 -SUPPLEMENTAL PENSION PL 12,850 12,850 0 12,833 17 99.87% 761- CERBT OPEB TRUST 1,800 1,800 0 394 1,406 21.88% 762 - PARS PENSION TRUST 30,000 30,000 2,453 12,711 17,289 42.37% Report Total: 118,084,878 118,084,878 6,508,066 45,366,280 72,718,598 38.42% 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 Page 3 of 3 Fund Descriptions 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. 105 Disaster Recovery Fund Accounts for use of one-time federal funding designed to deliver relief to American workers and aid in 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 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, ABI 379 / SBI 186 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 Housinq Authority which is to promote and provide quality affordable housinq. 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 Housinq) and housinq proqrams,. 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 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) I 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: February 7, 2024 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2022/23 GENERAL FUND YEAR- END BUDGET REPORT RECOMMENDATION Receive and file Fiscal Year 2022/23 General Fund Year -End Budget Report. EXECUTIVE SUMMARY • After closing the prior fiscal year, Finance presents a year-end summary that compares the final budget to actual transactions. • Revenue was approximately $5.6 million higher than budgeted. Expenditures (including approved carryovers from 2021/22 into 2022/23) were $48.3 million under budget. Of these savings, approximately $25.2 million will be carried over to 2023/24 for General Fund capital improvements and operations, for a net savings of $23.1 million. In addition, $13.8 million was allocated to Measure G reserves. • The City Council was presented this report on January 16, 2024. FISCAL IMPACT Amended budget carryovers from 2022/23 to 2023/24 total $32,846,582 for all Funds and are funded with budgetary savings from 2022/23. General Fund (101) - Operating General Fund (101) - Capital Improvements Gas Tax Fund (201) Lighting & Landscape Fund (215) Housing Authority Fund (241) RDA Low -Mod Housing Fund (243) 2011 Bond Fund (249) Facility and Fleet Replacement Fund (501) Information Technology Fund (502) Park Equipment & Facility Fund (503) $ 950,000 $ 2,600,009 $ 13,000,000 $ 22,623,372 $ 300,000 $ 300,000 $ 100,000 $ 167,000 $ 400,000 $ 400,000 $ - $ 50,000 $ 3,624,192 $ 4,961,201 $ 150,000 $ 700,000 $ - $ 195,000 $ 200,000 $ 850,000 TOTAL CARRYOVERS BY FUND $ 18,724,192 $ 32,846,582 BACKGROUND/ANALYSIS The Fiscal Year 2022/23 General Fund Year -End Budget Report (Report) focuses on the General Fund. Revenues were over budget by $5,656,391 mostly due to tax revenues. Overall, all department expenditures were under budget with total savings of $48,300,324. Of these savings, $25,223,381 will be carried over to 2023/24 for multi-year capital projects and operations. Revenues, expenditures, carryovers, reserve balances, and a year -over -year comparison are discussed in the Fiscal Year 2022/23 General Fund Year -End Budget Report (Attachment 1). ALTERNATIVES Council may request additional information regarding this report before approving the recommended amended budget carryovers. Prepared by: Claudia Martinez, Finance Director Approved by: Jon McMillen, City Manager Attachment: 1. Fiscal Year 2022/23 General Fund Year -End Budget Report ATTACHMENT ta �a CALIFORNIA FISCAL YEAR 2022/23 GENERAL FUND YEAR-END BUDGET REPORT OVERVIEW The City oversees multiple sources of funds which are reported in the Annual Comprehensive Financial Report (ACFR) issued annually and presented at a public meeting shortly thereafter. This Fiscal Year 2022/23 Budget Report (Report) focuses on the General Fund and summarizes the overall financial activities of fiscal year (FY) 2022/23 and the City's financial position through June 30, 2023. The chart below provides a summary comparison of the FY 2022/23 final budget versus actual revenues and expenses. Despite ongoing economic pressures, the City ended FY 2022/23 in a solid fiscal position as demonstrated by revenues exceeding budgetary projections, and expenditure savings which has helped build the City's reserves and remain in strong financial standing. As the City continues to remain fiscally strong, staff will closely monitor economic conditions while identifying strategic financial priorities and addressing critical needs such as infrastructure and capital improvement projects. Operational revenues were approximately $5.6 million over budget, and expenses after adjustments, carryovers, and reserve savings were about $12.5 million under budget resulting in a budget surplus of $18.2 million. Due to reimbursement of federal funding, the surplus includes $7.5 million of Measure G reserves that was replenished for the Dune Palms Bridge project. 7=kyId64111=1L7/�\ 7I2164ri:=L:� As detailed in Exhibit A and summarized on the chart below, most General Fund revenues experienced positive variances when compared to the final budget. Tax Revenue 61,746,700 65,145,998 3,399,298 6% Licenses & Permits 3,461,200 3,994,913 533,713 15% Intergovernmental 9,378,000 9,989,060 611,060 7% Charges for Services 1,391,100 1,558,859 167,759 12% Fines, Forfeitures & Abatements 522,000 563,495 41,495 8% Use of Money & Property 2,855,000 2,161,178 (693,822) -24% Miscellaneous/Transfers In 6,395,100 7,479,742 1,084,642 17% Total Revenues 85,749,100 90,893,246 5,144,145 6% Investments Fair Market Value Adjustment 893,437 893,437 RDA Loan Interest Earned, Extraordinary Gain (381,192) (381,192) 512,245 512,245 • Taxes represent 72% of all General Fund revenues and include the three largest funding sources for the City — sales taxes $28,888,079, transient occupancy taxes (TOT) $16,687,728, and property taxes $11,223,765. Combined, these top three revenues account for $56,799,572 or 87% of all taxes. • Licenses and permits continued to overperform as a result of new housing projects accelerating as residential and commercial property values remain high and lumber prices dropping significantly over the prior year. • Use of Money and Property includes the annual fair market value adjustment to the City's investments. In FY 2022/23 the portfolio holdings were valued less than book value due to market conditions, therefore a negative adjustment in the amount of $893,437 was recorded. The City's investments have a five-year horizon with laddered maturities. The City has worked diligently to leverage highly restricted investments under volatile market conditions. On June 30, 2022, the portfolio was earning a 0.79% rate of return and on June 30, 2023 the return was 2.09%. • Miscellaneous and Transfers In revenue includes $381,192 to record the annual former Redevelopment Agency loan repayment interest earned in FY 2022/23. The loan repayments are structured to pay all principal first, then interest. Each year the City records the payment received and interest earned in accordance with the State Department of Finance approved loan repayment schedule. This amount is also reduced from revenues as an adjustment because it is earned, but not received until a future date. EXPENSE VARIANCES General Fund expenses are summarized in the chart below by department, and details by department and expense category are located in Exhibit B. All departmental expenditures remained within budget. Savings were achieved from vacant positions, workflow efficiencies, and prudent management of contract and professional services. City Council 354,700 312,671 (42,029) - City Manager 1,326,164 1,083,016 (243,148) City Attorney 796,000 358,188 (437,812) - Human Resources 591,898 439,030 (152,868) 49,500 City Clerk 1,264,079 996,957 (267,122) - Finance 1,610,216 1,560,869 (49,347) - Centralized Services 61,817,234 20,949,055 (40,868,179) 24,310,381 Police 18,269,800 16,244,512 (2,025,288) 34,500 Fire 9,296,722 7,702,139 (1,594,583) 358,000 Community Resources Admin. 883,980 740,952 (143,028) - Wellness Center Operations 757,040 717,948 (39,092) - Recreational Programs & Events 1,498,751 1,099,230 (399,521) - Parks Maintenance 3,207,347 3,107,294 (100,053) 74,500 Marketing & Community Relations 1,833,378 1,648,064 (185,314) - Public Buildings 1,553,936 1,504,048 (49,888) - Design & Development Admin. 775,228 771,529 (3,699) - Planning 749,304 652,601 (96,703) - Building 1,457,240 1,386,587 (70,653) - Code Compliance/Animal Control 1,677,746 1,571,807 (105,939) - The Hub 1,244,439 996,706 (247,733) - Public Works Administration 800,848 625,176 (175,672) - Public Works Dev. Services 514,551 413,090 (101,461) - Streets 773,415 474,366 (299,049) - Engineering Services 1,248,656 646,511 (602,145) 396,500 Total Operating/CIP Expenditures 114,302,672 66,002,347 (48,300,324) 25,223,381 Estimated Actual Variance Carryovers to 2023/24 Capital Improvements 22,623,372 22,623,372 Operational 2,600,009 2,600,009 Total Carryovers 25,223,381 25,223,381 I rA k W199.'Wra: rx i I Plus Measure G Reserves 3,353,000 13,859,148 10,506,148 • Centralized Services (CS) represents the largest budget variance in the amount of $40.8 million. CS captures citywide expenses such as pension liabilities, retiree medical benefits, and transfers out to other funds such as the Gas Tax Fund for street improvements, Lighting and Landscape Fund, SilverRock Golf Course Fund, Public Safety Fund, Economic Development Fund and the Capital Improvement Project Fund. This department also has the greatest amount of carryovers to FY 2023/24 to fund multi-year capital improvement projects in the amount of $22,623,672 as detailed in Exhibit C, which is mainly attributed to projects currently in progress such as the Dune Palms Bridge project and road improvements. Capital improvement carryover funding ($9,528,039 or 42%) is provided from Measure G sales tax revenue. • To ensure funds are available for critical services such as Police and Fire, the City budget incorporates the rates originally disclosed by the County. FY 2022/23 savings are derived from enhancing and modifying resources post pandemic. o For Police services, savings of $2,025,288 were a result of prudent management of contract service costs, along with carryovers totaling $34,500 for vehicle and bicycle upgrades. o For Fire services, savings of $1,594,583 include $358,000 for a Fire ladder truck purchase to be carried over to FY 2023/24, the remaining overage was the result of tax revenues exceeding projections and expenditure savings in contract service costs and salary and benefits. • The Recreational Programs and Events savings of $399,521 were a result of effective management of citywide events including the La Quinta Art Celebration. • The Engineering Services department savings of $602,145 were mainly derived from contract service savings and La Quinta's share of the CVAG Art & Music Line in the amount of $196,500 to be carried over to FY 2023/24. Capital Improvement Program (CIP) carryovers, detailed in Exhibit C total $22,623,372 and operational carryovers, detailed in Exhibit D, from FY 2022/23 to FY 2023/24 increased by $1,650,009 from the original anticipated amount of $950,000 to $2,600,009. Carryovers allow for operational flexibility and reflects City commitments to projects, services or purchases that were made in 2022/23 but were not completed, fulfilled, or paid for by the end of the fiscal year. Funds not being carried over are recognized as Unassigned Reserve Fund balance in the General Fund. CIP revenue commitments are reflected in assigned reserves and operational carryovers are noted in committed reserves. RESERVES The chart below depicts reserve balances by category and the value change from June 30, 2022 to June 30, 2023. These reserve balances reflect the financial health of the City at fiscal year-end. Non -spendable balance decreased by a total of $2,235,550 and included an increase in prepaid costs. The FY 2022/23 Redevelopment Agency loan repayment of $2,695,745 and interest earnings of $381,192 resulted in a decrease of $2,314,553 in Due from Other Governments. • The Due from Other Governments balance of $19,600,793 represents the principal ($7,732,642) and interest ($11,868,151) owed to the General Fund (80% of total loan repayments). Non -spendable reserves cannot be used to fund ongoing operations and primarily represent commitments due to the General Fund. Restricted reserves are limited to funds held in a Section 115 Pension Trust set aside to fund the City's pension obligations. The trust balance resulted in a decrease in total value of $4,820,401 primarily due to utilizing pension trust funds in the amount of $5 million to pay down the City's unfunded pension liability. Committed reserves increased by $10.3 million due to operational carryovers as detailed in Exhibit D and additional funding for reserve categories. During the FY 2022/23 mid -year budget report, the Unassigned balance was reduced by $9,000,000 and used to fund the following reserves: • $5,000,000 for Natural Disaster Reserve • $2,000,000 for Economic Disaster Reserve • $2,000,000 for Capital Replacement Reserve At this time, all four of the City's reserve categories (Natural Disaster, Economic Disaster, Cash Flow and Capital Replacement) are fully funded to the updated policy targets as approved in the Reserve Policy. An increase of $6.5 million in assigned reserves was primarily due to Measure G sales tax revenue offset by a decrease in multi-year capital improvement project funding, The recent advanced funding of about $7.5 million for the Dune Palms Bridge Project allocated in FY 2021/22 was subsequently approved for federal reimbursements and was returned to Measure G reserves in FY 2022/23. The 2023/24 Mid -Year Budget report will be presented to Council by March of 2024. The Mid -Year Budget Report may include funding options for Council to consider an allocation of unassigned reserves into reserve categories such as the Pension Trust fund. In addition, staff will continue to monitor current economic impacts and operating expenses and request additional reserve funding if necessary. MEASURE G SUMMARY The Financial Advisory Commission oversees and audits the use of Measure G sales tax revenues and prepares the annual Measure G Sales Tax Oversight Report. The summary below provides a preview of the revenues and expenditures to date. The Measure G reserve balance ended the fiscal year at $29,214,191. Fiscal Year 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Actual $ Actual Actual Actual Actual Actual Actual TOTAL $ 1,462,650 9,967,657 10,958,118 10,310,526 12,594,389 15,615,802 16,088,087 76,997,229 ribum MEASURE G USES Year Project Description Operational Capital Reserves Total by Year 2016/17 Eisenhower Dr. Retention Basin 750,000 X -Park Funding 712,650 W7 r,462,650 2017/18 Public Safety Fund F300,000 North La Quinta Landscape Improvements 1,802,576 Citywide Drainage Enhancements 2,407,373 La Quinta Village Road Diet Project 1,972,158 X -Park Funding 147,350 Alongi Building Improvements 800,000 SilverRock Event Site/ Alongi Building/ Retention Basin 1,453,850 Measure G Reserves 2017/18 1,084,350 9,967,657 2018/19 Public Safety Fund 850,000 Public Safety Contract Services 2,100,000 Citywide Drainage Enhancements 194,730 North La Quinta Landscape Improvements 2,129,613 Si IverRock Event Site 1,300,000 Measure G Reserves 2018/19 4,383,775 10,958,118 2019/20 Public Safety Contract Services 2,750,000 Corporate Yard Administration/Crew Quarters 411,013 Highway 111 Corridor Improvements 1,000,000 North La Quinta Landscape Improvements 3,703,369 Village Art Plaza Promenade 310,000 Measure G Reserves 2019/20 2,136,144 10,310,526 2020/21 Public Safety Contract Services 4,545,000 X -Park Landscaping 275,000 Highway 111 Corridor Improvements 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 1,408,356 Highway 111 Corridor Improvements 1,000,000 Fritz Burns Park Improvements 350,000 Allocate Advance Dune Palms Bridge Funding 7,468,061 Measure G Reserves 2021/22 226,385 15,615,802 2022/23 Public Safety Contract Services 5,100,000 Landscape Renovation Improvements 500,000 Sports Complex Lighting 300,000 Village Underground Utilities Feasibility 100,000 ADA Transition Plan Update 150,000 Village Parking Lot 500,000 Phase II Public Safety Camera System 1,797,000 Smart Infrastructure Feasibility 250,000 Highway 111 Corridor Improvements 1,000,000 Dune Palms Bridge Advance Funding Reimbursement 1Measure G Reserves 2022/23lJKiJ=(7,M468,=06 13,859,148 16,088,087 TOTAL $ 20,808,000 $ 26,975,038 $ 29,214,191 $ 76,997,229 27% 35% 38% The FY 2022/23 Year -End Budget Report provides the City Council and residents with an overview of significant variances and reflects the City's commitment to fiscal discipline and transparency. Questions regarding this report may be directed to the Finance Department by calling 760-777-7150 or by email at finance laquintaca.gov. 4 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS BY CATEGORY 2021/22 2022/23 Actuals Original Budget EXHIBIT A 2022/23 YEAR-END BUDGET REPORT 2022/23 2022/23 Final Budget Actuals 101 - GENERAL FUND Fire Service Credit 101-0000-42501 Fire Service Reserves 101-0000-43100 310 - Tax Revenues 340,000 355,000 431,498 57,824 101-0000-40310 Property Tax Revenue 2,741,127 2,890,000 3,015,000 3,098,566 101-0000-40311 No -Low City Property Tax 4,805,049 4,845,000 4,945,000 5,388,267 101-0000-40315 RPTTF Pass Through 2,128,498 2,180,000 2,705,000 2,736,932 101-0000-41320 State Sales Tax 12,589,104 11,000,000 12,250,000 12,799,992 101-0000-41326 Measure G Sales Tax 15,615,802 13,500,000 15,500,000 16,088,087 101-0000-41327 Document Transfer Tax 1,352,585 650,000 750,000 926,743 101-0000-41400 TOT - Hotels 9,448,099 7,300,000 9,000,000 9,772,760 101-0000-41401 TOT - Short Term Vac. Rentals 7,144,654 5,000,000 6,000,000 6,415,354 101-0000-41402 TOT - Bed and Breakfast 104,426 100,000 100,000 103,272 101-0000-41416 TOT - Resort Fees 358,422 375,000 375,000 396,342 101-0000-41505 Franchise Taxes - Burrtec 966,467 1,000,000 1,000,000 1,188,773 101-0000-41508 Southern California Gas Franchise 206,498 160,000 160,000 246,641 101-0000-41509 Cable Television Franchise Fee 676,143 660,000 660,000 677,929 101-0000-41510 Communications Franchise Fees 210,081 275,000 275,000 195,772 101-0000-41800 Property Tax in Lieu of VLF 4,663,327 5,011,700 5,011,700 5,110,569 310 - Tax Revenues Totals: 63,010,284 54,946,700 61,746,700 65,145,998 320 - Licenses & Permits 101-0000-41411 SNR Inspection Fee 101-0000-41415 SNR Registration Fee 101-0000-41600 Business Licenses 101-0000-41602 SNR Business Licenses 101-0000-41610 Film Permits 101-0000-42400 Building Permits 101-0000-42401 Plumbing Permits 101-0000-42402 Mechanical Permits 101-0000-42403 Electrical Permits 101-0000-42404 Miscellaneous Permits 101-0000-42405 Garage Sale Permits 101-0000-42408 Grading Permits 101-0000-42420 Fire Plan Review Fee 101-0000-42421 Fire Inspection Fee 101-0000-42430 Transportation Permits 101-0000-42431 Conditional Use Permits 101-0000-42433 Minor Use Permit 101-0000-42434 Sign Permit 101-0000-42435 Site Development Permit 101-0000-42436 Final Landscaping Plans 101-0000-42437 Development Agreement 101-0000-42439 Temporary Use Permit 101-0000-43632 Public Works Permits 101-0000-43638 NPDES Inspections 320 - Licenses & Permits Totals: 330 - Intergovernmental 101-0000-41710 State Gov't Revenue 101-0000-42500 Fire Service Credit 101-0000-42501 Fire Service Reserves 101-0000-43100 FEMA 1,300 2,000 2,000 2,275 1,022,050 900,000 900,000 962,500 378,882 340,000 355,000 431,498 57,824 40,000 45,000 51,582 1,428 2,000 2,000 1,091 1,185,352 600,000 800,000 1,009,315 201,028 90,000 140,000 175,858 198,643 100,000 140,000 175,576 159,331 80,000 130,000 154,126 312,182 200,000 300,000 340,078 5,670 6,000 6,000 4,540 66,928 15,000 30,000 58,539 99,228 65,000 65,000 69,618 119,607 60,000 130,000 142,218 1,151 2,000 2,000 578 29,573 15,000 75,000 63,591 13,564 8,700 8,700 2,668 26,161 16,500 29,500 26,076 72,028 50,000 70,000 76,941 24,901 12,000 12,000 17,296 3,446 1,000 1,000 3,446 36,588 10,000 10,000 1,656 493,861 200,000 200,000 212,483 10,697 8,000 8,000 11,365 4,521,424 2,823,200 3,461,200 3,994,913 0 0 0 203,682 7,587,538 7,600,000 9,100,000 9,473,316 561,645 0 0 0 24,516 0 0 33,247 101-0000-43633 CSA 152 Assessments 460,052 250,000 275,000 275,816 101-0000-43650 Contributions from Other Agencie! 3,000 3,000 3,000 3,000 330 - Intergovernmental Totals: 8,636,751 7,853,000 9,378,000 9,989,060 340 - Charges for Services 101-0000-42200 Leisure Enrichment 11,658 35,000 35,000 13,313 101-0000-42210 Youth Sports 41,045 40,000 40,000 45,710 101-0000-42211 Adult Sports 5,755 1,000 6,000 8,207 101-0000-42212 Facility Rentals 7,301 35,000 35,000 7,959 101-0000-42213 Special Events 0 10,000 10,000 0 101-0000-42214 Wellness Center Leisure Enrichme 12,652 20,000 20,000 16,556 101-0000-42216 Wellness Center Special Events (105) 1,000 1,000 0 101-0000-42218 Wellness Center Memberships 52,260 75,000 75,000 88,602 Unaudited, final amounts will be reported in the 2022/23 Financial Statements CITY OF LA QUINTA 101-0000-42700 Administrative Citations 101-0000-42701 Lot Abatement 101-0000-42702 GENERAL FUND REVENUE DETAILS BY CATEGORY 2022/23 YEAR-END BUDGET REPORT Motor Vehicle Code Fines 101-0000-42706 2021/22 2022/23 2022/23 2022/23 Graffiti Removal 101-0000-42709 Actuals Original Budget Final Budget Actuals 101-0000-42300 Cash Over/Short 1,363 0 0 0 101-0000-42303 NSF Charges 25 400 400 75 101-0000-42412 Minor Adjustment, Plan Checks 28,324 3,000 23,000 33,360 101-0000-42415 Tentative Tract Map 25,414 25,000 25,000 33,124 101-0000-42416 Digitization/Records Management 53,188 30,000 45,000 54,190 101-0000-42417 Modification by Applicant 5,712 2,500 2,500 1,975 101-0000-42440 Appeals - Permits, Licenses, Proje 1,725 3,000 3,000 750 101-0000-42441 Planning Compliance Review 0 0 0 838 101-0000-42443 Zone Change 21,772 10,000 10,000 1,702 101-0000-42445 Environmental Assessment 5,635 5,000 15,000 12,254 101-0000-42446 General Plan Amendment 10,465 10,000 10,000 11,379 101-0000-42447 Home Occupations 10,039 11,000 11,000 6,658 101-0000-42448 Tentative Parcel Map 5,224 10,000 10,000 14,238 101-0000-42451 Specific Plan 4,946 10,000 10,000 5,194 101-0000-42460 Pre -Application Review 11,798 5,000 5,000 6,069 101-0000-42600 Building Plan Check Fees 929,874 526,000 726,000 933,046 101-0000-42610 SMIP Fees 554 600 600 1,409 101-0000-42615 CBSC Administrative Fees 410 600 600 1,409 101-0000-42810 Public Works Dev. Plan Check Fee 334,644 180,000 240,000 223,062 101-0000-43631 CVMSHCP Admin Fee 8,603 2,000 2,000 5,911 101-0000-43635 VGPS TBID Admin Fee 35,057 30,000 30,000 31,868 340 - Charges for Services Totals: 1,625,339 1,081,100 1,391,100 1,558,859 350 - Fines, Forfeitures & Abatements 101-0000-42700 Administrative Citations 101-0000-42701 Lot Abatement 101-0000-42702 Vehicle Abatement 101-0000-42703 Vehicle Impound Fee 101-0000-42705 Motor Vehicle Code Fines 101-0000-42706 Parking Violations 101-0000-42707 Misc Fines 101-0000-42708 Graffiti Removal 101-0000-42709 False Alarm Fees - Police 101-0000-42710 False Alarm Fees - Fire 350 - Fines, Forfeitures & Abatements Totals 360 - Use of Money & Property 101-0000-41900 Allocated Interest 101-0000-41910 GASB 31 Interest 101-0000-41930 Interest Revenue 101-0000-42120 Lease Revenue 360 - Use of Money & Property Totals: 370 - Miscellaneous 101-0000-41410 Zoning Change Mitigation Fees 101-0000-41504 AMR Compliance 101-0000-41507 Burrtec Admin Cost Reimburseme 101-0000-41920 Memorial Tree Revenue 101-0000-42000 Insurance Recoveries 101-0000-42140 Sales of Publications & Materials 101-0000-42301 Miscellaneous Revenue 101-0000-42305 Miscellaneous Reimbursements 101-0000-43505 Credit Card Fee Revenue 101-0000-45000 Sale of Other Assets 101-0000-48500 Extraordinary Gain 22,702 370 - Miscellaneous Totals: 400,708 180,000 240,000 339,246 188 5,000 5,000 931 47,293 35,000 35,000 42,773 50,870 65,000 65,000 55,457 62,927 100,000 100,000 69,488 29,183 40,000 40,000 22,702 9,413 8,000 8,000 1,221 8,675 9,000 9,000 8,071 32,295 15,000 15,000 19,222 16,038 5.000 5,000 4,383 657,589 462,000 522,000 563,495 931,973 400,000 2,700,000 2,865,841 (3,964,823) 0 0 (893,437) 47,795 0 0 45,221 153,367 155,000 155,000 143,553 (2,831,688) 555,000 2,855,000 2,161,178 287,773 400,000 1,000,000 1,612,340 21,632 20,000 20,000 0 181,278 120,000 120,000 66,614 0 0 0 1,000 3,448 5,000 30,000 46,299 30 100 100 640 3,557 5,000 77,000 113,339 62,243 50,000 75,000 168,735 0 0 48,000 59,589 1,486 0 25,000 29,994 487,613 0 0 381,192 1,049,059 600,100 1,395,100 2,479,742 Unaudited, final amounts will be reported in the 2022/23 Financial Statements CITY OF LA QUINTA GENERALFUND REVENUE DETAILS BY CATEGORY 2022/23 YEAR-END BUDGET REPORT 2021/22 2022/23 2022/23 2022/23 Actuals Original Budget Final Budget Actuals 380 - Transfers In 101-0000-49500 Transfers In 0 0 5,000,000 5,000,000 380 - Transfers In Totals: 0 0 5,000,000 5,000,000 101 - GENERAL FUND Totals: 76,668,758 68,321,100 85,749,100 90,893,246 Non -Cash Transactions Adjusted Operating Revenues 3,477,210 80,145,968 Unaudited, final amounts will be reported in the 2022/23 Financial Statements 512,245 91,405,491 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT 2021/22 2022/23 Actuals Original Budget EXHIBIT B 2022/23 YEAR-END BUDGET REPORT 2022/23 2022/23 Final Budget Actuals 1001 - City Council 251,153 351,400 354,700 312,671 Salaries and Benefits 233,149 295,900 299,200 245,737 Maintenance & Operations 18,004 55,500 55,500 66,934 1002 - City Manager 796,578 1,177,540 1,326,164 1,083,016 Salaries and Benefits 500,384 539,340 687,964 725,331 Contract Services 89,320 145,000 145,000 108,078 Maintenance & Operations 95,974 115,000 115,000 112,481 Other Expenses 46,000 300,000 300,000 58,927 Internal Service Charges 64,900 78,200 78,200 78,200 1003 - City Attorney 370,189 796,000 796,000 358,188 Contract Services 370,189 796,000 796,000 358,188 1004 - Human Resources 269,015 495,698 591,898 439,030 Salaries and Benefits 175,125 255,798 258,298 233,383 Contract Services 28,107 90,000 163,700 112,314 Maintenance & Operations 46,683 103,900 123,900 47,333 Internal Service Charges 19,100 46,000 46,000 46,000 1005 - City Clerk 586,861 1,257,526 1,264,079 996,957 Salaries and Benefits 446,644 703,218 709,771 590,870 Contract Services 48,057 385,000 385,000 242,931 Maintenance & Operations 17,760 34,700 34,700 28,548 Internal Service Charges 74,400 134,608 134,608 134,608 1006 - Finance 1,241,161 1,595,830 1,610,216 1,560,869 Salaries and Benefits 940,346 1,145,530 1,159,916 1,147,772 Contract Services 117,464 205,000 205,000 182,801 Maintenance & Operations 14,851 40,700 40,700 25,696 Internal Service Charges 168,500 204,600 204,600 204,600 1007 - Central Services 9,738,291 14,447,100 61,817,234 20,949,055 Salaries and Benefits 3,773,246 3,352,600 13,068,216 12,620,892 Maintenance & Operations 166,068 213,200 413,200 108,667 Capital Expenses 599,125 20,000 480,000 452,554 Internal Service Charges 784,550 822,300 822,300 822,300 Transfers Out 4,415,303 10,039,000 47,033,518 6,944,642 2001 - Police 16,868,265 18,185,900 18,269,800 16,244,512 Contract Services Maintenance & Operations Repair & Maintenance Utilities Capital Expenses Internal Service Charges 2002 - Fire Salaries and Benefits Contract Services Maintenance & Operations Utilities Capital Expenses Internal Service Charges Transfers Out 3001 - Community Resources Administration Salaries and Benefits Contract Services Maintenance & Operations Internal Service Charges 3002 - Wellness Center Operations Salaries and Benefits 16,745,378 18,072,000 18,072,000 16,077,040 7,428 18,000 18,000 7,689 0 0 61,000 60,540 17,348 21,000 21,000 17,823 37,010 0 22,900 6,519 61,100 74,900 74,900 74,900 8,008,530 8,851,872 9,296,722 7,702,139 263,818 290,272 292,022 197,817 6,962,420 8,123,000 8,123,000 7,033,798 115,487 150,000 150,000 122,699 80,798 87,000 87,000 84,211 103,395 15,000 458,100 77,014 119,600 186,600 186,600 186,600 363,012 0 0 0 661,768 880,480 883,980 740,952 513,569 546,180 549,680 448,931 38,081 92,000 92,000 71,803 43,318 161,800 161,800 139,718 66,800 80,500 80,500 80,500 612,277 682,102 757,040 717,948 476,972 477,502 552,440 559,481 Unaudited, final amounts will be reported in the 2022/23 Financial Statements CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT 2022/23 YEAR-END BUDGET REPORT 2021/22 2022/23 2022/23 2022/23 Actuals Original Budget Final Budget Actuals Contract Services 21,545 48,000 48,000 24,849 Maintenance & Operations 31,761 56,700 56,700 33,718 Internal Service Charges 82,000 99,900 99,900 99,900 3003 - Recreation Programs & Special Events 640,734 1,088,734 1,498,751 1,099,230 Salaries and Benefits 101,002 212,534 286,551 200,323 Contract Services 243,964 330,000 486,000 474,543 Maintenance & Operations 242,568 501,500 681,500 379,664 Internal Service Charges 53,200 44,700 44,700 44,700 3005 - Parks Maintenance 2,445,674 3,042,072 3,207,347 3,107,294 Salaries and Benefits 340,651 398,222 426,997 418,129 Contract Services 582,436 657,200 729,700 729,648 Maintenance & Operations 634,026 774,850 838,850 803,016 Utilities 403,660 508,400 508,400 453,101 Internal Service Charges 484,900 703,400 703,400 703,400 3007 - Marketing & Community Relations 1,389,343 1,632,128 1,833,378 1,648,064 Salaries and Benefits 238,729 267,328 268,578 160,546 Contract Services 436,633 404,200 509,200 481,020 Maintenance & Operations 675,781 914,600 1,009,600 960,497 Internal Service Charges 38,200 46,000 46,000 46,000 3008 - Public Buildings 1,374,563 1,390,052 1,553,936 1,504,048 Salaries and Benefits 506,901 553,052 566,936 557,885 Contract Services 207,930 242,000 242,000 208,330 Maintenance & Operations 187,230 179,500 274,500 257,246 Utilities 200,502 158,500 213,500 223,587 Internal Service Charges 272,000 257,000 257,000 257,000 6001 - Design & Development Administration 816,867 756,824 775,228 771,529 Salaries and Benefits 448,748 408,024 426,428 427,755 Contract Services 222,248 160,000 160,000 162,361 Maintenance & Operations 3,471 11,700 11,700 4,313 Internal Service Charges 142,400 177,100 177,100 177,100 6002 - Planning 559,340 744,830 749,304 652,601 Salaries and Benefits 376,017 428,230 432,704 417,922 Contract Services 113,128 225,000 225,000 146,180 Maintenance & Operations 12,995 22,600 22,600 19,500 Internal Service Charges 57,200 69,000 69,000 69,000 6003 - Building 960,672 1,291,362 1,457,240 1,386,587 Salaries and Benefits 547,698 723,362 739,240 619,142 Contract Services 246,380 290,000 440,000 491,810 Maintenance & Operations 3,095 10,300 10,300 7,935 Internal Service Charges 163,500 267,700 267,700 267,700 6004 - Code Compliance/Animal Control 1,312,923 1,663,996 1,677,746 1,571,807 Salaries and Benefits 686,027 857,996 867,746 786,495 Contract Services 349,121 433,500 433,500 421,802 Maintenance & Operations 9,874 20,300 24,300 11,310 Internal Service Charges 267,900 352,200 352,200 352,200 6006 - The Hub 834,387 1,236,482 1,244,439 996,706 Salaries and Benefits 600,711 916,382 924,339 749,203 Contract Services 95,036 130,000 130,000 58,115 Maintenance & Operations 5,140 6,200 6,200 5,489 Internal Service Charges 133,500 183,900 183,900 183,900 7001 - Public Works Administration 535,839 794,862 800,848 625,176 Salaries and Benefits 454,607 543,362 549,348 527,426 Contract Services 0 150,000 150,000 500 Maintenance & Operations 4,932 9,500 9,500 5,250 Unaudited, final amounts will be reported in the 2022/23 Financial Statements CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT 2022/23 YEAR-END BUDGET REPORT 2021/22 2022/23 2022/23 2022/23 Actuals Original Budget Final Budget Actuals Internal Service Charges 76,300 92,000 92,000 92,000 7002 - Public Works Development Services 374,998 512,960 514,551 413,090 Salaries and Benefits 147,359 170,060 171,651 156,072 Contract Services 155,250 250,000 250,000 166,779 Maintenance & Operations 2,189 5,000 5,000 2,339 Internal Service Charges 70,200 87,900 87,900 87,900 7003 - Streets 426,354 754,768 773,415 474,366 Salaries and Benefits 277,298 362,768 381,415 257,948 Contract Services 64,753 260,000 260,000 63,383 Maintenance & Operations 27,104 58,000 58,000 65,600 Other Expenses 0 5,000 5,000 18,434 Internal Service Charges 57,200 69,000 69,000 69,000 7006 - Engineering Services 758,472 1,020,756 1,248,656 646,511 Salaries and Benefits 322,004 351,456 353,956 241,985 Contract Services 271,577 590,000 590,000 300,994 Maintenance & Operations 9,002 10,300 10,300 5,802 Other Expenses 98,689 0 225,400 28,731 Internal Service Charges 57,200 69,000 69,000 69,000 GENERAL FUND EXPENSES 51,834,255 64,651,274 114,302,672 66,002,347 Unaudited, final amounts will be reported in the 2022/23 Financial Statements CITY OF LA QUINTA EXHIBIT C Project # Project Name General Fund Measure G I TOTAL 111205 Dune Palms Bridge Improvements 4,858,991 - 4,858,991 2223DRA Citywide Drainage Enhancements 1,419,027 - 1,419,027 2223ADA ADA Improvements 60,000 - 60,000 2223PMP Pavement Management 3,771,921 - 3,771,921 2223STI Sidewalk Improvements 2,036 - 2,036 201603 Landscape Renovations 426,073 3,104,039 3,530,112 201606 Civic Center Campus Lake 521,515 - 521,515 201805 Corporate Yard Admin. Offices - 355,240 355,240 201901 Village Art Plaza Promenade - 308,208 308,208 201905 Highway 111 Corridor - 2,500,079 2,500,079 201908 Citywide Catch Basin Modifications 250,000 - 250,000 202102 Fritz Burns Park Improvements - 294,683 294,683 202108 FY 21/22 PMP Slurry Seal Improvements (29,376) - (29,376) 202202 City Hall Capacity Improvements 550,000 - 550,000 202204 Sports Complex Lighting Replacement - 273,951 273,951 202206 Village Utilities Undergrounding Project 24,315 84,208 108,523 202007 SilverRock Retention Basin Soil Stabilization 54,432 - 54,432 202208 Citywide Miscellaneous ADA Improvements 75,236 - 75,236 202209 ADA Transition Plan Update - 150,000 150,000 202211 Village Parking Lot - 500,000 500,000 202212 Phase II Camera System - 1,797,000 1,797,000 202213 Smart Infrastructure Improvements Feasibility Study - 249,650 249,650 202217 Storm Drain Maintenance 707,708 - 707,708 202218 SilverRock Park Venue WIFI & Camera Backbone - (89,018) (89,018) 202222 Blackhawk Way School Crossing 21,938 - 21,938 SAVINGS Prior CIP Project Savings 346,531 - 346,531 999902 Jefferson Interchange 34,987 - 34,987 TOTAL $ 13,095,333 $ 9,528,039 $ 22,623,372 58% 42% 100% balances represent temporary fundina until arants are EXHIBIT D AMENDED CARRYOVERS Estimated carryovers from the 2022/23 to 2023/24 budget were estimated based on projected invoices in the Spring of 2023. Upon completion of the final audit, Finance verifies account balances and carryovers and amended carryovers will be added to the 2023/24 budget. Description/Program Account Number Account Name Estimated Revised Climate Assessment 101-1004-60103 Professional Services $ $ 29,500 Employee wellness programs 101-1004-60104 Consultants/Employee Services $ $ 20,000 Marketing efforts to attract group business to hotels 101-1007-60536 TOT Resort Rebate Program $ 300,000 $ 300,000 Land Purchase- Highway 111 & Dune Palms 101-1007-99900 Transfers Out $ - $ 1,387,009 Police electric bicycles 101-2001-60175 Special Enforcement Funds $ $ 18,500 Police motorcycles 101-2001-71031 Vehicles $ $ 16,000 Fire Ladder Truck purchase 101-2002-80101 Machinery& Equipment $ 360,000 $ 358,000 Park landscape Improvements 101-3005-60431 Materials/Supplies $ 90,000 $ 74,500 Replacement of street signs 101-7006-60103 Professional Services $ 200,000 $ 200,000 Art & Music Line contribution 101-7006-60480 Contributions to other agencies $ - $ 196,500 GENERAL FUND CARRYOVERS $ 950,000 $ 2,600,009 Heavy machinery/equipment purchase 201-7003-80100 Machinery&Equipment $ 300,000 $ 300,000 Median upgrades 215-7004-60431 Materials/Supplies $ 100,000 $ 167,000 Dune Palms Mobile Estates improvements 241-9104-72110 Building/Site Improvements $ 400,000 $ 400,000 Homelessness Assistance 243-0000-60532 Homelessness Assistance $ - $ 50,000 Land Purchase- Highway 111 and Dune Palms 249-0000-49500 Transfers In $ - $ 1,387,009 Land Purchase- Highway 111 and Dune Palms 249-0000-74010 Land Acquisition $ 3,624,192 $ 3,574,192 Vehicle upgrades 501-0000-60675 Parts, Accessories, and Upfits $ - $ 50,000 Vehicle replacement 501-0000-71031 Vehicles, Purchased $ $ 100,000 Council Chamber upgrades 501-0000-71103 City BldgRepl/Repair $ $ 51,000 Heavy machinery/equipment purchase 501-0000-80100 Machinery&Equipment $ 150,000 $ 499,000 Audio visual upgrades 502-0000-80100 Machinery & Equipment $ - $ 195,000 Park supplies and upgrades 503-0000-71060 Parks $ 200,000 $ 850,000 SPECIAL FUNDS CARRYOVERS $ 4,774,192 $ 7,623,201 TOTAL CARRYOVERS FOR ALL FUNDS $ 5,724,192 $ 10,223,210 NOTE: In June 2023 Khen the budget is adopted, all carryovers are estimates based on projected invoices to end fiscal year 2022123. Upon completion of the final audit, Finance verifies account balances and makes additional carryover recommendations based on current budgetary needs. In no event shall a canyover exceed the revised per account amount above. 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: February 7, 2024 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 • Citywide Comprehensive Audit for fiscal year 2022/23- In process • Filed the City's Annual State Controller's Reports for the City and the Finance Authority for fiscal year 2022/23 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 • Auditing Services Selection Committee o Interviews were conducted, final recommendation to City Council on February 20, 2024. • Financial Statement and Audit training to be scheduled for entire Commission CITY UPDATES • The 2024 Community Workshop will be held on Thursday, February 22 from 5:00 p.m. to 7:00 p.m at the La Quinta Wellness Center Learn more at https://www.laguintaca.gov/our-city/community-workshop. • A joint meeting of the City Council and Planning Commission was held on September 26, 2023 to discuss updates to the Hwy 111 Corridor Specific Plan. To date, expenditures related to the project are detailed in the Project Activity Report (Attachment 1), in the amount of $857,830.41. Revenue allocations of Measure G do not yet include the most recent quarter entry. • The City is currently studying the feasibility of undergrounding utilities in various areas of the City. A study session detailing areas to be converted and estimated costs was held on September 19, 2023, and a follow up study session to discuss funding options was held on December 19, 2023. Staff encourages the FAC members to view the meetings as time permits. • Imperial Irrigation District (IID) power distribution substations in La Quinta are nearing or have reached capacity and need to be expanded or upgraded for both existing customers and for new development. A discussion on cost - share options for electrical substation upgrades was presented to Council on January 16, 2024. Staff encourages the FAC members to view the meetings as time permits. • The City's Land -Secured Financing policy was adopted by City Council on January 16, 2024. • On November 21, 2023, the President approved the Major Disaster Declaration for California. Subsequently to the disaster declaration, FEMA announced that federal disaster assistance would be made available to the state of California to supplement recovery efforts in the areas affected by Hilary. CalOES facilitates both the state CDAA and FEMA Public Assistance programs, and as part of their facilitation, held an applicant's briefing on December 7, 2023, which provided an overview of the requirements for all potential funding and grants. A resolution designating the City's authorized agent(s) must be filed with Cal OES along with the public assistance applications through the grant portal in order to allow the City to submit requests for federal and state public assistance to be approved by Council on December 19, 2023. The City is currently working with FEMA on the reporting and reimbursement process. More information on the City's reimbursement will be provided at future meetings. 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. City of La Quints Project Number 201905 Revenues Account Key 201905MG GL Account Number 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 401-0000-49500 2/2/2024 2:07:47 PM ATTACHMENT 1 Project Activity vs Budget Report By Project Number Date Range: - Project Name Group Type Highway 111 Corridor Area Plan Implementati Fund 401 Construction in Process St Improvements Date Range Beginning Account Name Total Budget Budget Balance Measure G Funding -4,250,000.00 -4,250,000.00 0.00 GL Account Name Post Date Description Vendor Name Transfers In 03/31/2020 MG 201905 HWY 111 CORRIDOR PLAN Transfers In 06/30/2020 MG 201905 HIGHWAY 111 CORRIDOR AREA PLAN Transfers In 09/30/2020 MG 201905 HIGHWAY 111 CORRIDOR AREA PLAN Transfers In 12/31/2020 MG 201905 HIGHWAY 111 CORRIDOR AREA PLAN Transfers In 03/31/2021 MG 201905 HIGHWAY 111 CORRIDOR AREA PLAN Transfers In 06/30/2021 MG HIGHWAY 111 CORRIDOR AREA PLAN Transfers In 09/30/2021 MG 201905 HIGHWAY 111 CORRIDOR PLAN Transfers In 12/31/2021 MG 201905 HWY CORRIDOR AREA PLAN Transfers In 03/31/2022 MG 201905 HWY CORRIDOR AREA PLAN Transfers In 06/30/2022 MG 201905 HWY CORRIDOR AREA PLAN Transfers In 09/30/2022 MG 201905 HWY CORRIDOR AREA PLAN Transfers In 12/31/2022 MG 201905 HIGHWAY 111 CORRIDOR AREA Transfers In 03/31/2023 MG 201905 HIGHWAY 111 CORRIDOR AREA Transfers In 06/30/2023 MG 201905 HIGHWAY 111 CORRIDOR AREA 201905 Total: Status Active Ending Total Activity Balance -749,920.55 -749,920.55 Item Number Budget Remaining -3,500,079.45 Activity -1,980.00 -5,006.25 -11,715.00 -41,035.00 -7,955.00 -230,049.59 -2,995.00 -30,468.25 -3,020.00 -130,479.46 -14,775.00 -4,537.50 -145,350.50 -120,554.00 -4,250,000.00 -4,250,000.00 0.00 -749,920.55 -749,920.55 -3,500,079.45 Page 1 of 2 Project Activity vs Budget Report Project Number Project Name 201905 Highway 111 Corridor Area Plan Impl Report Total: Group Fund 401 Construction in Process Report Tota I: Group St Improvements 2/2/2024 2:07:47 PM Report Tota I: Project Summary Date Range Total Budget Budget -4,250,000.00 -4,250,000.00 Date Range: - Summary Beginning Ending Budget Balance Total Activity Balance Remaining 0.00 -749,920.55 -749,920.55 -3,500,079.45 -4,250,000.00 -4,250,000.00 0.00 -749,920.55 -749,920.55 -3,500,079.45 Group Summary Total Budget Budget -4,250,000.00 -4,250,000.00 -749,920.55 Date Range Beginning Ending Budget Total Budget Budget Balance Total Activity Balance Remaining -4,250,000.00 -4,250,000.00 0.00 -749,920.55 -749,920.55 -3,500,079.45 -4,250,000.00 -4,250,000.00 Type Summary Beginning Ending Date Range Total Budget Budget -4,250,000.00 -4,250,000.00 0.00 -749,920.55 -749,920.55 -3,500,079.45 Beginning Ending Budget Balance Total Activity Balance Remaining 0.00 -749,920.55 -749,920.55 -3,500,079.45 -4,250,000.00 -4,250,000.00 0.00 -749,920.55 -749,920.55 -3,500,079.45 Page 2 of 2 ta&Kra City of La Quinta Project Number Project Name Group 201905 Highway 111 Corridor Area Plan Implementati Fund 401 Construction in Process Expenses Balance Total Activity Date Range Account Key Account Name 0.00 Total Budget Budget 201905CG Contingency Expense 415,910.00 415,910.00 Budget Balance Total Activity Date Range Account Key Account Name 0.00 Total Budget Budget 201905CT Construction Expense 2,988,012.00 2,988,012.00 Budget Balance Total Activity Date Range Account Key Account Name 783,389.16 783,389.16 Total Budget Budget 201905D Design Expense Item Number 306,926.00 306,926.00 GL Account Number GL Account Name Post Date Description 401-0000-60185 Design 12/18/2020 2019-05 HWY 111 CORRIDOR PROJECT (PLAN&ENG) 401-0000-60185 Design 12/18/2020 2019-05 HWY 111 CORRIDOR PROJECT (PLAN&ENG) 401-0000-60185 Design 04/16/2021 12/2020 - HWY 111 PLANNING/ ENGINEERING SVCS 401-0000-60185 Design 04/16/2021 02/2021 - HWY 111 PLANNING/ ENGINEERING SVCS 401-0000-60185 Design 06/11/2021 04/2021 - HWY 111 PLANNING/ENGINEERING SVCS 401-0000-60185 Design 06/25/2021 05/2021 - HWY 111 PLANNING/ENGINEERING SVCS 401-0000-60185 Design 10/08/2021 06/2021 - HWY 111 PLANNING/ENGINEERING SVCS 401-0000-60185 Design 10/29/2021 07/2021 - HWY 111 PLANNING/ENGINEERING SVCS 401-0000-60185 Design 04/22/2022 03/24/22 - HWY 111 SITE TOUR LUNCH 401-0000-60185 Design 04/22/2022 03/24/22 - HWY 111 SITE TOUR TRANSPORTATION 401-0000-60185 Design 06/30/2022 03/2022 HWY 111 CORRIDOR PLAN NING/ENG INEERIN 401-0000-60185 Design 06/30/2022 06/2022 HWY 111 CORRIDOR PLAN NING/ENG INERRI 401-0000-60185 Design 09/02/2022 07/2022 - HWY 111 CORRIDOR PLAN NING/ENGINERRI 401-0000-60185 Design 03/03/2023 12/2022 HWY 111 CORRIDOR PLAN NING/ENG INEERIN 401-0000-60185 Design 03/03/2023 11/2022 HWY 111 CORRIDOR PLAN NING/ENG INEERIN 401-0000-60185 Design 03/03/2023 10/2022 HWY 111 CORRIDOR PLAN NING/ENG INEERIN 401-0000-60185 Design 03/03/2023 09/2022 HWY 111 CORRIDOR PLAN NING/ENG INEERIN 401-0000-60185 Design 03/17/2023 01/2023 HWY 111 CORRIDOR PLAN NING/ENG INEERIN 401-0000-60185 Design 06/30/2023 04/2023 - HWY 111 CORRIDOR PLAN NING/ENGINEERI 401-0000-60185 Design 06/30/2023 03/2023 - HWY 111 CORRIDOR PLAN NING/ENGINEERI 401-0000-60185 Design 06/30/2023 02/2023 - HWY 111 CORRIDOR PLAN NING/ENGINEERI 401-0000-60185 Design 06/30/2023 06/2023 - HWY 111 CORRIDOR PLAN NING/ENGINERRI 401-0000-60185 Design 06/30/2023 05/2023 - HWY 111 CORRIDOR PLAN NING/ENGINEERI 401-0000-60185 Design 09/08/2023 07/2023 HWY 111 CORRIDOR PLAN NING/ENG INEERIN 401-0000-60185 Design 01/26/2024 10/2023 - HWY 111 CORRIDOR PLAN NING/ENGINEERI Project Activity vs Budget Report By Project Number Date Range: - Type Status St Improvements Active Beginning Ending Budget Balance Total Activity Balance Remaining 0.00 0.00 0.00 415,910.00 Beginning Ending Budget Balance Total Activity Balance Remaining 0.00 0.00 0.00 2,988,012.00 Beginning Ending Budget Balance Total Activity Balance Remaining 0.00 783,389.16 783,389.16 -476,463.16 Vendor Name Item Number Activity GHD INC. 153361 25,600.00 GHD INC. 151505 8,290.00 GHD INC. 155454 32,923.75 GHD INC. 158460 78,461.25 GHD INC. 161990 75,409.84 GHD INC. 163575 34,827.25 GHD INC. 165668 19,315.75 GHD INC. 380-0000621 8,620.00 BANK OF THE WEST (PLEASE SEE MAR-226925BM 207.43 BANK OF THE WEST (PLEASE SEE MAR-226925BM 460.00 GHD INC. 380-0012735 41,235.83 GHD INC. 380-0016011 84,123.70 GHD INC. 380-0017688 12,962.50 GHD INC. 380-0025445 9,171.25 GHD INC. 380-0024095 18,251.25 GHD INC. 380-0023845 51,571.25 GHD INC. 380-0020901 49,617.50 GHD INC. 380-0027217 12,726.75 GHD INC. 380-0031910 22,207.51 GHD INC. 380-0030405 9,366.25 GHD INC. 380-0028778 18,667.58 GHD INC. 380-0035378 42,803.21 GHD INC. 380-0033492 22,721.95 GHD INC. 380-0036834 49,312.65 GHD INC. 380-0041445 54,534.71 2/2/2024 2:08:04 PM Page 1 of 4 Project Activity vs Budget Report Date Range: 2/2/2024 2:08:04 PM Page 2 of 4 Date Range Beginning Ending Budget Account Key Account Name Total Budget Budget Balance Total Activity Balance Remaining 201905P Professional Expense 250,258.00 250,258.00 0.00 74,441.25 74,441.25 175,816.75 GL Account Number GL Account Name Post Date Description Vendor Name Item Number Activity 401-0000-60103 Professional Services 03/20/2020 02/2020 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 8 JOB 2019-08 1,980.00 401-0000-60103 Professional Services 04/24/2020 03/2020 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 9 JOB 2019-08 825.00 401-0000-60103 Professional Services 06/12/2020 05/2020 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 11 JOB 2019-08 330.00 401-0000-60103 Professional Services 06/30/2020 06/2020 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 12 JOB 2019-08 3,851.25 401-0000-60103 Professional Services 09/04/2020 07/2020 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 13 JOB 2019-08 9,240.00 401-0000-60103 Professional Services 09/25/2020 08/2020 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 14 JOB 2019-08 2,475.00 401-0000-60103 Professional Services 10/09/2020 09/2020 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 15 JOB 2019-08 2,182.50 401-0000-60103 Professional Services 12/04/2020 10/2020 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 16 JOB 2019-08 4,962.50 401-0000-60103 Professional Services 01/15/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 17 JOB 2019-08 2,657.50 401-0000-60103 Professional Services 01/22/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 18 JOB 2019-08 720.00 401-0000-60103 Professional Services 03/05/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 19 JOB 2019-08 980.00 401-0000-60103 Professional Services 03/19/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.20 3,597.50 401-0000-60103 Professional Services 04/23/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.21 2,072.50 401-0000-60103 Professional Services 05/28/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.22 1,657.50 401-0000-60103 Professional Services 06/18/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.23 1,850.00 401-0000-60103 Professional Services 06/30/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.24 2,847.50 401-0000-60103 Professional Services 09/17/2021 07/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.25 630.00 401-0000-60103 Professional Services 09/17/2021 08/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.26 2,365.00 401-0000-60103 Professional Services 11/05/2021 09/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.27 790.00 401-0000-60103 Professional Services 12/03/2021 10/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.28 1,742.50 401-0000-60103 Professional Services 01/14/2022 12/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.30 930.00 401-0000-60103 Professional Services 01/14/2022 11/2021 - HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.29 620.00 401-0000-60103 Professional Services 02/25/2022 01/2022 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.31 192.50 401-0000-60103 Professional Services 03/18/2022 02/2022 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.32 1,277.50 401-0000-60103 Professional Services 04/15/2022 03/2022 - HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.33 1,860.00 401-0000-60103 Professional Services 06/30/2022 05/2022 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.35 967.50 401-0000-60103 Professional Services 06/30/2022 06/2022 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.36 1,625.00 401-0000-60103 Professional Services 08/26/2022 07/2022 2019-05 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.37 1,812.50 401-0000-60103 Professional Services 10/07/2022 08/2022 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.38 1,700.00 401-0000-60103 Professional Services 10/28/2022 09/2022 - 2019-05 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019.08.39 1,962.50 401-0000-60103 Professional Services 12/16/2022 12/2022 - 2019-05 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.41 875.00 401-0000-60103 Professional Services 02/03/2023 12/2022 - 2019-05 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.42 3,312.50 401-0000-60103 Professional Services 02/24/2023 01/2023 - 2019-05 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.43 700.00 401-0000-60103 Professional Services 05/05/2023 03/2023 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.45 2,137.50 401-0000-60103 Professional Services 05/05/2023 03/2023 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.44 725.00 401-0000-60103 Professional Services 06/23/2023 05/2023 - 2019-05 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.47 1,250.00 401-0000-60103 Professional Services 06/30/2023 06/2023 - 2019-05 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.48 675.00 401-0000-60103 Professional Services 08/25/2023 07/2023 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.49 637.50 2/2/2024 2:08:04 PM Page 2 of 4 Project Activity vs Budget Report 401-0000-60103 Professional Services 401-0000-60103 Professional Services 401-0000-60103 Professional Services 401-0000-60103 Professional Services 401-0000-60103 Professional Services Account Key Account Name 201905T Technical Expense 10/13/2023 08/2023 - 2019-05 HIGHWAY 111 CORRIDOR 10/27/2023 09/2023 HIGHWAY 111 CORRIDOR 11/17/2023 10/2023 - 2019-05 HIGHWAY 111 CORRIDOR 01/19/2024 11/2023 HIGHWAY 111 CORRIDOR 01/19/2024 12/2023 HIGHWAY 111 CORRIDOR 201905 Total: Date Range Total Budget Budget 288,894.00 288,894.00 4,250,000.00 4,250,000.00 0.00 857,830.41 857,830.41 3,392,169.59 2/2/2024 2:08:04 PM Page 3 of 4 Date Range: - NAI CONSULTING INC 2019-08.50 437.50 NAI CONSULTING INC 2019-08.51 700.00 NAI CONSULTING INC 2019-08.52 525.00 NAI CONSULTING INC 2019-08.53 887.50 NAI CONSULTING INC 2019-08.54 875.00 Beginning Ending Budget Balance Total Activity Balance Remaining 0.00 0.00 0.00 288,894.00 4,250,000.00 4,250,000.00 0.00 857,830.41 857,830.41 3,392,169.59 2/2/2024 2:08:04 PM Page 3 of 4 Project Activity vs Budget Report Project Number Project Name 201905 Highway 111 Corridor Area Plan Impl Report Total: Group Fund 401 Construction in Process Report Tota I: Group St Improvements 2/2/2024 2:08:04 PM Report Tota I: Project Summary Date Range Total Budget Budget 4,250,000.00 4,250,000.00 Date Range: - Summary Beginning Ending Budget Balance Total Activity Balance Remaining 0.00 857,830.41 857,830.41 3,392,169.59 4,250,000.00 4,250,000.00 0.00 857,830.41 857,830.41 3,392,169.59 Group Summary Total Budget Budget 4,250,000.00 4,250,000.00 857,830.41 Date Range Beginning Ending Budget Total Budget Budget Balance Total Activity Balance Remaining 4,250,000.00 4,250,000.00 0.00 857,830.41 857,830.41 3,392,169.59 4,250,000.00 4,250,000.00 Type Summary Beginning Ending Date Range Total Budget Budget 4,250,000.00 4,250,000.00 0.00 857,830.41 857,830.41 3,392,169.59 Beginning Ending Budget Balance Total Activity Balance Remaining 0.00 857,830.41 857,830.41 3,392,169.59 4,250,000.00 4,250,000.00 0.00 857,830.41 857,830.41 3,392,169.59 Page 4 of 4 DEPARTMENTAL REPORT ITEM NO. 2 City of La Qu i nta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Members of the Financial Advisory Commission FROM: Rosemary Hallick, Principal Management Analyst DATE: February 7, 2024 SUBJECT: THIRD QUARTER 2023 (JULY -SEPTEMBER) SALES TAX UPDATE FOR THE CITY OF LA QUINTA The attached report was prepared by consultants HdL Companies as an update of sales tax receipts for third quarter sales from July to September 2023. • La Quinta's overall adjusted sales tax receipts for major industry groups decreased 1.5% as compared to last year. As a comparison, Riverside County was down 2.0% and the state was down 1.7%. The decrease was primarily driven by the Autos and Transportation business group, which includes Fuel and Service stations that were down due to fuel price decreases. Details may be found in the attached Sales Tax Update prepared by HdL. • The City's sales -per -capita remains higher than both the county and state averages. La Quinta Riverside County Southern California California Per Capita Sales $9,900 $8,800 $7,000 $6,00 $5,00 $4,900 '� $3,000 2Q 30 30 40 1Q 2Q 30 40 10 20 30 40 1Q 23 23 20 20 2E 21 21 21 22 22 22 22 23 4erods shown reflectthe period in which the sales occured - Point of Sa'e • General consumer goods (such as department stores) made up 37% of sales tax revenue and 40% of Measure G revenue. • Autos and transportation made up 10% of sales tax revenue and 15% of Measure G revenue. • The City continues to benefit from online purchasing in the form of the County pool share, which was 14% of our sales tax revenue. Sales Tax Autos and Transportation Building and Construction Business and Industry Restaurants and Hotels Autos and Transportation 3023 Percent of Total Food Fuel and and ners Sa -Service Drug s 6und Stations and Industry 10% State and County Pools Restaurants and Hotels 3Q23 Percent of Total F.--�,d Fuel and Mrd Service Or.i s Stations 90% 15% Measure and Construction Generar Consumer Goods General Consumer Goods The City continuously monitors local development, economic conditions, impacts on travel and trade, and legislative and judicial news for any potential changes to sales tax collections. The City's fiscal year 2023/24 budget was forecasted slightly below 2022/23 actuals, based on known information as of Spring 2023, and will be reviewed throughout the fiscal year if needed. Fiscal year-to-date sales tax collections are shown in the chart below. Combined, the City has received $10.3 million in sales and transactions taxes through November 2023, as compared to $10.6 million in the same period last year. Quarter Payment Bradley Burns 33060 Measure G 520 MG % of BB 3 July 2023 Advance $ 833,873 $ 1,091,167 130.86% 3 August 2023 Advance $ 725,567 $ 966,223 133.17% 3 September 2023 -3rd Qtr Payment $ 865,626 $ 1,136,836 131.33% 3 Total 2023 $ 2,425,066 $ 3,194,227 131.72% 4 October 2023 Advance $ 1,099,316 $ 1,342,070 122.08% 4 November 2023 Advance $ 979,253 $ 1,227,838 125.39% 4 December 2023 4th Qtr Payment #DIV/0! 4 Total 2023 $ 2,078,569 $ 2,569,908 123.64% 1 January 2024 advance #DIV/0! 1 February 2024 advance #DIV/0! 1 March 2024 1st Qtr payment #DIV/0! 1 Total 2024 $ - $ - #DIV/0! 2 April 2024 Advance #DIV/0! 2 May 2024 Advance #DIV/0! 2 June 2024 - 2nd Qtr Payment #DIV/0! 2 Total 2024 $ $ #DIV/0! Attachment 1: HdL Q3 2023 Sales Tax Update Attachment 2: HdL December 2023 California Forecast ATTACHMENT 1 CITY OF LA QU I NTA SALES TAX UPDATE 06 &Ktev 3Q 2023 (JULY - SEPTEMBER) LA QUINTA -1.5% 1. TOTAL:4) • 1COUNTY *Allocation aberrations have been adjusted to reflect sales activity SALES TAX BY MAJOR BUSINESS GROUP $1,000,000 $800,000 $600,000 $400,000 Legend $200,000 Q3 2022* $0 ■ • Q3 2023* General Restaurants County Building Autos Fuel and Food Business Consumer and and State and and Service and and Goods Hotels Pools Construction Transportation Stations Drugs Industry CITY OF LA QUINTA HIGHLIGHTS ( D TOP 25 PRODUCERS La Quinta's receipts from July through September were 0.9% below the third sales period in 2022. Excluding reporting aberrations, actual sales were down 1.5%. Receipts from fuel -service stations declined as prices at the pump were significantly lower than in 3Q22. Additionally, spending in the building -construction category is down, with consumers choosing to conserve and spend only on necessities. Moreover, high interest rates have created weakening affordability, putting a damper on revenue from auto -transportation. The business -industry sector slumped in the third quarter of 2023, as new orders stalled after over -production in 2022. Receipts from restaurants -hotels dipped as consumers picked less expensive dining options. Likewise, consumers continued to look for ways to save, reducing overall receipts from general consumer goods. On the positive, a new business addition helped to boost totals from food -drugs. The City's share of the countywide use tax pool decreased 0.8% when compared to the same period in the prior year. Measure G, the City's voter -approved transactions and use tax, brought in an additional $3,205,811 in revenue. Net of aberrations, taxable sales for all Riverside County declined 2.0% over the comparable period; the Southern California region was down 1.5%. Arco AM PM Best Buy BevMo Circle K Cliffhouse Costco Floor & Decor G&MOil Genesis/Hyundai of La Quinta Hobby Lobby Home Depot In N Out Burger Kohls La Quinta Chevrolet & Cadillac La Quinta Resort & Club Lowes Marshalls McDonald's Ross Target TJ Maxx Torre Nissan Tower Mart Ulta Beauty Walmart Supercenter HdL° Companies www.hdlcompanies.com 1888.861.0220 Published by HdL Companies in Winter 2024 (S) STATEWIDE RESULTS California's local one cent sales and use tax receipts for sales during the months of July through September were 1.6% lower than the same quarter one year ago after adjusting for accounting anomalies. The third quarter of the calendar year continued with a challenging comparison to prior year growth and stagnating consumer demand in the face of higher prices of goods. Fuel and service stations contributed the greatest overall decline as lower fuel prices at the pump reduced receipts from gas stations and petroleum providers. While global crude oil prices have stabilized, they remained 15% lower year -over -year. This decline also impacted the general consumer goods category as those retailers selling fuel experienced a similar drop. Despite OPEC and Russia production cuts having upward pressure on pricing, global demand during the winter months has softened. Along with merchants selling gas, many other general consumer categories were also down from the 2022 quarter, confirming consumers pulling back on purchases. Home furnishings and electronic -appliances were a couple of the largest sectors with the biggest reductions. As inflation and higher prices were the main story a year ago, currently it appears to be a balancing act between wants and needs, leaving meek expectations for the upcoming holiday shopping season. Even following a long, wet first half of 2023, spending at building and construction suppliers moderately slowed. The current high interest rate environment did not help the summer period and still represents the largest potential headwind for the industry with depressed commercial development, slowing public infrastructure projects and new housing starts waiting for more profitable financial conditions. Despite continued increases of new car registrations, revenue from the autos - transportation sector slipped 2.6%. The improved activity remains mostly attributed to rental car agencies restocking their fleets. Like other segments, elevated financing costs are expected to impede future retail volume. Use taxes remitted via the countywide pools dipped 3.0%, marking the fourth consecutive quarter of decline. While overall online sales volume is steady, pool collections dropped with the offsetting effect of more taxes allocated directly to local agencies via in-state fulfillment generated at large warehouses and through existing retail outlets. Cons.Goods Building 12% Restaurants remained an economic bright spot through summer exhibiting a 2.6% gain. As tourism, holiday and business travel are all expected to have recovered in 2024, the industry is bracing for implementation of AB 1228 - new CA law setting minimum wages for'fast food restaurants'. With one more quarterly result to go in 2023, the recent trend of a moderate decline appears likely before a recovery in 2024. Initial reports from the holiday shopping season reflect a 3% bump in retail sales compared to 2022. Lingering consumer confidence may have also received welcome news as the Federal Reserve considers softening rates by mid -2024. Fuel Others Pools 14% Restaurants 16% Autos/Trans. 10% *ADJUSTED FOR ECONOMIC DATA La Quinta County HdL State Business Type Q3'23* Change Change Change Casual Dining 176.5 -1.7%10 1.4%0 2.8%0 Service Stations 118.6 -10.1%0 -7.8%0 -7.4%0 Electronics/Appliance Stores 93.3 -1.7%0 -12.4% 4D -14.1%10 Quick -Service Restaurants 86.3 5.2%0 1.9%0 2.7%0 Family Apparel 75.5 16.9%10 4.9%0 3.1%0 Specialty Stores 61.3 2.1%10 -1.1%40 -2.0%10 Grocery Stores 60.8 2.7%0 0.0%I0 2.3%0 Fast -Casual Restaurants 31.9 -0.2% ID 1.2%4D 3.3%10 Leisure/Entertainment 31.7 -2.8% ID 7.5%0 8.1%0 Fine Dining 27.1 11.8%0 -9.4%4D -6.0%4D *Allnratinn aherratinns have heen arliusterl to reflert .sales nrtivity *In thousands of dollars ANIMOR54 0 1 VA Ll t F -I IM pet HduCompanies 888.861.0220 1 solutions@hdlcompanies.com I hdlcompanies.com HdP STATEWIDE Companies SALES TAX TRENDS Overview: Confounding some economy experts, consumer spending did not plunge in 2023. Even as product prices, consumer patterns and world influences vacillated through the post pandemic economy these past two years, HdL has consistently not forecasted a recession -based sales tax outlook. Recent trends show inflation has cooled, although not yet hit desired Federal Reserve targets. Interest rate hikes kept borrowing costs for homes, transportation, and equipment above 2022 levels. Financing costs are expected to begin a gradual descent in the back half of 2024. Households should stay on a path of placing greater spending priorities on essential items while deferring non-essential purchases when possible. 2023/2412024/25 m6;, Autos/Transportation - 2.0% Vehicle owners face the highest level of negative equity in over three years, a consequence of soaring prices and financing burdens that have created a precarious situation for recent buyers. Repossessions are on the rise as used car values plummet from their peak just a year ago, intensifying financial strain on shoppers, particularly those with suboptimal credit scores. Consequently, tax revenue from the auto - transportation sector is anticipated to dip slightly over the next three quarters. However, as the Federal Reserve gradually relaxes monetary policies in the upcoming year, there is expectancy of a resurgence powered by the release of significant pent-up demand that has accumulated since the onset of the pandemic. ABuilding/Construction -0.8%13.5% Cement and asphalt batch plant activity appears to begrowing because of heightened infrastructure work around the state in addition to delayed repair projects related to last year's storms. Roofing supply houses and roofing contractors also saw large sales increases this fall. Lumber prices have plateaued, but most other commodity rates are still increasing. Big -box home improvement centers are drawing fewer customers as shoppers forego appliances and other big-ticket outlays. Recent mortgage interest rate declines did little to benefit new development but with rates expected to move toward their new base by the middle of 2024, new home and commercial development are expected to accelerate, sparking gradual growth in overall sales that stabilizes in fiscal year 2026-27. Business/Industry 2.3%12.2% As predicted, results rose 3.7% over the year ago quarter - primarily driven by fulfillment center revenues. Accounting for nearly 30% of total revenues, fulfillment centers expanded as ecommerce leans into satisfying more orders from California-based warehouses (places of sale). Overall, the group posted mixed results. Gains by trailers/ auto parts and energy/utilities were partially offset in reductions of other segments. Heavy and light industry faced inventory, pricing, labor and demand challenges that drove down returns significantly. Considering the influencing variables for these various sectors, HdL projects modest overall improvement for this diverse category. Given its unique composition, jurisdictional predictions vary based on the size and character of these companies within each community. Food/Drugs 0.1%12.0% Grocery stores climbed 2.3% in 3Q23 from priced -based gains as inflationary pressures pushed up revenues despite smaller volumes. Convenience and drug stores saw weaker sales as consumers became price sensitive, diverting spending to retailers that are more affordable or offer better deals. Cannabis declined 3.3% as demand softened when compared to the spike during the pandemic. Further, competitive merchant pressure caused a significant drop in the price of cannabis products. Drug stores should experience shifting in brand loyalty as one of the major chains begins closing locations throughout the state. Nevertheless, food -drugs should rise modestly at 1% in the short term, gradually increasing to 2% in fiscal year 2024-25. HdL Companies California Forecast December 2023 2023/2412024/25 Fuel/Service Stations -1.2%10.2% Tax generators experienced a temporary spike in prices of regular, diesel, jet fuel and crude oil late in the third quarter and early fourth quarter of 2023. Given ongoing volatility across the globe, this surge mitigated a portion of the anticipated drop in associated sales tax in the third quarter (meaning revenues fell, but less than was forecast). In addition, future outcomes show a shallower reduction than the previously anticipated change for the fourth quarter of 2023. The forecast now reflects slower historical patterns of growth for the 2024 calendar year and long-term annual gains of 2% from fiscal years 2025-2026 through 2028-2029. General Consumer Goods -0.9%11.4% The third quarter 2023 performance slightly outpaced our expectations but still sustained a mild contraction in tax payments. This was driven by tighter family budgets while previously mentioned headwinds permeated the economy in the form of elevated interest rates, diminished savings, and the anticipation of student loan debt payments resuming. Most recent readings of consumer confidence and sentiment reflect favorable expectations for general merchandise sellers. Many retailers have kept their guidance stagnant but strength remains in off-price concepts as consumers enjoy the treasure hunt experience. The outlook for the group remains soft with mild growth returning in the second half of 2024. Restaurants/Hotels 2.9%13.7% Menu prices should continue to rise, but at a slower pace than last year. In 2Q24, AB 1228 takes effect, requiring new minimum wages for fast-food restaurants (defined as part of a national fast-food chain with sixty or more establishments Nationally). This law contributes to these rising prices; of note, a few major corporations already announced intent to pass costs along to patrons. Restaurants are strategically offering deals to entice consumers to keep eating out. Hotel room rates should flatten out, but not drop as vacancy levels remain steady. The one segment that is seeing decline is fine dining as guests opt for more price -conscious alternatives. State and County Pools -1.1%12.0% " Long-standing eccentricity in sales tax laws led to use taxes paid into county pools declining for the fourth consecutive quarter. Returns for many online merchants are up. More in-state fulfillment has diverted tax allocations away from pools and toward fulfillment center sites as noted in the Business -Industry group, however. Early holiday sales reports showed ecommerce trends produced greater shopper penetration as increases for the entire Cyber 5 period (Thanksgiving through Cyber Monday) rose at a faster pace than the same period of 2022. Acknowledging continuously changing tax distributions to local agencies alongwith more buy online, pick up in store activity, FY 2023-24 results fell slightly. Outer year's projections capture 2 to 3% per annum growth for pool -based revenues. r* NATIONAL AND STATEWIDE Ecomom�Cs ECONOMIC DRIVERS 2023/2412024/25 U.S. Real GDP Growth 2.5%11.9% NMI Real GDP growth in the third quarter of 2023 came in at 5.2%, a significant acceleration from 2.1% growth in the second quarter. Consumer spending and inventory investment largely drove rapid GDP growth in the third quarter. The U.S. consumer remains a powerhouse, constituting nearly 70% of all economic activity in the nation. Beacon Economics' forecast also cal Is for a slowing (not recession) of economic growth in 2024 from the current pace, seeing a different pattern of growth than the Fed. Beacon predicts that consumer demand may continue to keep inflation above the Fed's target. This, in turn, means the Fed may not loosen as they are predicting, leading to a more challenging environment for credit -sensitive parts of the economy. According to the GDPNow estimate from the Atlanta Fed, growth in the fourth quarter of 2023 could come in between 2% and 3%. 00 CA Unemployment Rate 4.7%15.0% On a quarterly basis, employment has declined in each month going back to July. Similarly, the state's unemployment rate increased to 4.8% in October, up from 4.1%a year earlier. During the peak of California's labor market in July 2022, there were roughly 2job openings for every unemployed worker. Since then however, the number of job openings and job seekers has converged. In September 2023, there were an estimated 911,000 job openings and 913,500 job seekers, yielding a ratio of 1.003. A ratio of 1 means there is 1 job opening for every unemployed person. CA Total Nonfarm 1 ; Employment Growth 1.9%10.7% After 29 months of post -pandemic job growth dating back to April 2021, employment growth in California was flat in September and declined in October. California's total nonfarm employment has grown 17.9% since the trough of the pandemic; however, employment declined 0.2% year -over -year in October, the latest data available. Furthermore, on a quarterly basis, employment has declined in each month going back to July. The cooling labor market is a lagged response to interest rate hikes during the past year and a half. Additionally, employment growth in California is constrained by the state's high housing costs, which have contributed to significant net domestic migration losses. 2023/2412024/25 U.S. Unemployment Rate 3.9%14.3% 11 ■ Unemployment in the nation remains rock bottom with rates at 3.7% in November, and 3.7% overall in the third quarter of 2023. In October, there were 0.7 unemployed persons for every job opening, indicating a tight labor market, despite higher interest rates. The U.S. job openings rate was 5.3% in October, 2.1 percentage points lower than its peak of 7.4% in March 2022, but still higher than before the Pandemic. Moreover, the labor force participation rate continues to increase, suggesting that rising income is having the expected effect of expanding labor supply, albeit at too slow of a pace. CA Residential Building Permits 140,295 1 146,633 California's housing shortage is deep. By some estimates, the state was 3.5 million homes short of what it needed to accommodate its population in 2016. While the state has been building housing units at a rapid pace (about 450,000 units since the beginning of 2020 to the third quarter of 2023, according to the California Department of Finance), that pace of building will need to be sustained and/or accelerated over a decade or more to change the market. Additionally, the CDF's updated forecasts showing a flatlined population growth in California over the next several decades will also need to hold. •�i. CA Median Existing 1J Home Price $696,863 1 $723,489 After nine months of year -over -year declines stretching back to October 2022, the median sale price for an existing single-family home in California returned to growth in July, rising 1.3%. Since then, price growth has accelerated, reaching 7.6% year -over -year in October 2023, the most recent month of data available. Currently, home prices are 38.5% above the pre -pandemic peak in February 2020, and 1.6% below the pandemic peak in March 2022. On a quarterly basis, Beacon Economics expects home prices to surpass the pandemic peak by mid 2024. The state's severe housing shortage is a major reason why prices have returned to growth even though sales are still declining. Existing homeowners who are reluctant to sell because they are "locked -in" to low mortgage rates are further exacerbating the housing shortage. Watchourwebinar 0 for more info! 0 HdL Companies California Forecast December 2023 HdE° Comp Delivering Insight, Revenue, and Efficiency to Local Government HdL Companies 888.861.0220 1 solutions@hdlcompanies.com I hdlcompanies.com California's allocation data trails actual sales activity by three to six months. Hdl- compensates for the lack of current information by reviewing the latest reports, statistics and perspectives from fifty or more economists, analysts and trade associations to reach a consensus on probable trends for coming quarters. The forecast is used to help project revenues based on statewide formulas and for reference in tailoring sales tax estimates appropriate to each client's specific demographics, tax base and regional trends. Beacon Economics LLC 310.571.3399 1 BeaconEcon.com Beacon Economics has proven to be one of the most thorough and accurate economic research/analytical forecasting firms in the country. Their evaluation of the key drivers impacting local economies and tax revenues provides additional perspective to HdUs quarterly consensus updates. The collaboration and sharing of information between Beacon and Hdl- helps both companies enhance the accuracy of the work that they perform for their respective clients. POWER POINTS FAC MEETING FEBRUARY 7,2024 Financial Advisory Commission Meeting February 7, 2024 l •. - .'r T a CAL Financial Advisory Commission B1 — 2022/23 Year -End Budget Report Report Content Revenues Expenditures Reserve Summary Carryovers Exhibits 2/7/2024 w Tax Revenue 61,746,700 65,145,998 3,399,298 Licenses & Permits 3,461,200 3,994,913 533,713 Intergovernmental 9,378,000 9,989,060 611,060 Charges for Services 1,391,100 1,558,859 167,759 Fines, Forfeitures & Abatements 522,000 563,495 41,495 Use of Money & Property 2,855,000 2,161,178 (693,822) Miscellaneous/Transfers In 6,395,100 7,479,742 1,084,642 Total Revenues 85,749,100 90,893,246 5,144,145 Investments Fair Market Value Adjustment 893,437 893,437 RDA Loan Interest Earned, Extraordinary Gain (381,192) (381,192) 512,245 512,245 0 3 Carryovers to 2023/24 Capital Improvements ■ Total $22,623,372 ■ For 26 Projects and CIP Savings, detailed in Exhibit C Operating ■ Total $2,600,009 Other Funds ■ Total $7,623,201 Reserve/Fund Balance I As of June 30, 2022 11 As of June 30, 2023 11 Change in Value TOTAL FUND BALANCE 165,907,013 11 185,977,51111 20,070,498 Advances to Other Due from Other Governments.11 Non-SpendableTotal Restricted • 1 1 1 Committed Operational Carryovers 1,209,100 2,600,009 1,390,90 Cash Flow Reserve Natural Disaster Reserve 5,000,000 10,000,000 5,000,000 15,000,000 - 5,000,0 Economic Disaster 11,000,000 13,000,000 2,000,0 Capital Replacement Reserve Total Committed 10,000,000 37,209,100 12,000,000 47,600,009 2,000,0 10,390,90 Assigned Public Safety Fire Services 11,183,821 11,986,970 803,149 Measure G Sales Tax 15,355,043 29,214,191 13,859,148 Capital Projects 30,761,847 22,623,372 (8,138,475) Total Assiqned 57,300,711 63,824,533 6,523,822 TOTAL FUND BALANCE 165,907,013 11 185,977,51111 20,070,498 Measure G Summary REVENUES SINCE INCEPTION $77 MILLION $18 I 51� — 514 — 512 n n 510 5$ 58 24 _ W17 17118 18!18 :912Q 29121 21M 22x23 Rua I Year ■ FY 22-23 Measure G Revenue : $16.1 million ■ Revenues since inception: $77 million On the Horizon --a-- - , 1 4-," Fiscally healthy & well managed resources Maintenance & preservation of roads, landscape, & facilities ■ IID/Undergrounding Utilities . ■ Sphere of Influence The Financial Advisory Commission's Next Regular Quarterly Meeting is on May 8, 2024 F OWL. a