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2024 02 07 FAC MinutesCALL TO ORDER FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, FEBRUARY 7, 2024 A regular 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, Kiehl, Mast, Mills, Way (joined the meeting at 4:03 p.m.) and Chair Dorsey ABSENT: None PLEDGE OF ALLEGIANCE Commissioner Batavick led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None CONFIRMATION OF AGENDA — Confirmed COMMISSIONER WAY JOINED THE MEETING AT 4.03 P.M. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS — None CONSENT CALENDAR ITEMS 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 CONSENT CALENDAR ITEM NO. 2 — Discussion The Commission and staff discussed the reduction in development impact fees (DIF) was due to decrease in building activity; land acquisition expense for Highway 111 and Dune Palms of $3,583,426 (utilizing housing funds and slated for a future affordable housing development), listed on Top Five Expenditures/Outlays for October - Non -General Fund, noted on page 2 of the staff report; and the Highway Bridge Program federal funding reimbursement of $1,972,448, and the Coachella Valley Association of Governments (CVAG) reimbursement of $794,818, which are both for the Dune Palms bridge project, listed on the October 2023 report, noted on page 2 of the staff report. FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 3 FEBRUARY 7, 2024 Motion — A motion was made and seconded by Commissioners Batavick/Mills to approve the Consent Calendar as submitted. Motion passed unanimously. BUSINESS SESSION 1. RECEIVE AND FILE FISCAL YEAR 2022/23 GENERAL FUND YEAR-END BUDGET REPORT Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission and staff discussed the general fund revenue variances; capital improvement program (CIP) carryover budget; efforts underway to identify funding options for electrical substation infrastructure improvements to increase capacity to allow future developments in the city; the Village Undergrounding Feasibility Study, available funding options, approval process, associated costs, and the community's interest in undergrounding utilities; and the different economic forecasting reports utilized for budget projections. Motion — A motion was made and seconded by Commissioners Mills/Way to receive and file fiscal year 2022/23 general fund year-end budget report as submitted. 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. Finance Director Martinez thanked the Auditing Services subcommittee, which consisted of Commissioners Anderson and Dorsey, for their time and review of the City's request for proposals submitted for auditing services. The subcommittee provided an overview of their review and experience of the interview process with the firms. The Commission inquired about the timeline for completing the City's Annual Comprehensive Financial Reports (ACFR). Staff said that the ACFR will be completed by the end of February 2024 and the root cause for the delay in audit process is due to the new implementations required by the Government Accounting Standards Board. 2. THIRD QUARTER 2023 (JULY -SEPTEMBER) SALES TAX UPDATE FOR THE CITY OF LA QUINTA FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 3 FEBRUARY 7, 2024 The Commission and staff discussed timeline for staff receiving the HDL Companies California forecast sales tax trends report, included as Attachment 2 to the departmental report. COMMISSIONERS' ITEMS The Commission requested staff provide reports and presentations to the Commission in advance of them being presented to Council so that proper recommendations may be given prior to Council consideration. Finance Director Martinez explained every effort is made to present items within the Commission's purview prior to Council consideration, which at times cannot be accommodated due to meeting dates scheduling conflicts for the Commission; however, in such rare occasions, the reports are provided to the Commission in advance for the Commission's review, comments and/or recommendations prior to Council meetings. Additionally, Finance Director Martinez mentioned that some reports are informative to the Commission, which are not under the Commission's purview nor require recommendations or approval. The Commission asked if staff could provide a listing of reports that require review and recommendations prior to presenting them to Council. Commissioner Mills asked if there will be a special meeting on Wednesday, April 3, 2024. Staff confirmed. Commissioner Anderson mentioned receiving an email from City Clerk's Office regarding completing Statements of Economic Interests — Form 700, which is due by April 1, 2024. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Batavick/Mast to adjourn this meeting at 5:09 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 FEBRUARY 7, 2024