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2024 04 03 FAC Minutes Special MeetingFINANCIAL ADVISORY COMMISSION iPECIAL MEETIr' MINUTES WEDNESDAY, APRIL 3, 2024 CALL TO ORDER A special meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 4:07 p.m. by Chair Dorsey. PRESENT: Commissioners Anderson, Batavick, Kiehl, Mast, Way and Chair Dorsey ABSENT: Commissioner Mills PLEDGE OF ALLEGIANCE Commissioner Anderson led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None CONFIRMATION OF AGENDA Staff requested that Study Session Item No. 1 regarding the City's five-year Capital Improvement Program be moved up on the agenda and considered before the Consent Calendar. The Commission concurred. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1. SALES TAX TRENDS PRESENTATION BY HDL COMPANIES DIRECTOR OF CLIENT SERVICES BOBBY YOUNG City Consultant and Director of Client Services of HDL Companies Bobby Young shared his experience with working with the government sector; provided a breakdown of statewide and local sales tax trends; online sales tax allocation; the difference between City/County General Fund (Bradley -Burns) and La Quinta Measure G sales tax; and types of businesses included as major industry and business groups. Finance Director Martinez and Mr. Young provided an overview of how sales tax data is used to create the City's budget and to update sales tax forecast with HDL Companies. Further discussion followed on sales tax allocation for auto sales for La Quinta residents, consumer and federal spending, and changes in Measure G sales tax revenue. STUDY SESSION >>> taken out of Agenda order FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 4 APRIL 3, 2024 SPECIAL MEETING 1. DISCUSS PROJECTS TO BE INCLUDED IN FISCAL YEARS 2024125 THROUGH 2028/29 CAPITAL IMPROVEMENT PROGRAM (CIP) Management Analyst Mignogna and Public Works Director/City Engineer McKinney presented the staff report, which is on file in the Finance Department. The Commission and staff discussed CIP transportation projects; funding allocation and improvements for the cultural campus project; Senate Bill 1 transportation funding; amenities to be included in the Fritz Burns (FB) park project; types of grants available and process for applying for a grant; and budgeting for other funding sources. Commissioner Batavick recommended the following changes to the 5-year CIP: • Using $2 million more of Measure G funding for the Pavement Management Plan (PMP) Transportation projects. • Funding FB park improvements and the Maintenance and Operations Yard project 100% with Measure G funds. • Consideration of moving the Public Safety Camera System project from fiscal year 2025/26 to fiscal year 2024/25. Staff said that recommendations would be shared with Council for their consideration and that a percentage of funding for PMP must be from the General Fund, but an increase in Measure G funding may be considered. The Commission and staff discussed the City's procurement process for obtaining bids and completing projects and the Avenue 50 widening improvements. The Commission gave their farewells to Management Analyst Mignogna and wished her the best of luck in her new endeavor. CONSENT CALENDAR ITEMS 1. APPROVE MEETING MINUTES DATED FEBRUARY 7, 2024 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED DECEMBER 31, 2023 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JANUARY 31, 2024 Motion — A motion was made and seconded by Commissioners Way/Mast to approve the Consent Calendar as submitted. Motion passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Mills). FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 APRIL 3, 2024 SPECIAL MEETING BUSINESS SESSION 1. RECEIVE AND FILE SECOND QUARTER FISCAL YEAR 2023/24 TREASURY REPORTS FOR OCTOBER, NOVEMBER, AND DECEMBER 2023 Finance Director Martinez presented the staff report, which is on file in the Finance Department. Motion — A motion was made and seconded by Commissioners Mast/Batavick to receive and file second quarter fiscal year 2023/24 treasury reports for October, November, and December 2023. Motion passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Mills). 2. RECEIVE AND FILE FISCAL YEAR 2023/24 BUDGET UPDATE REPORT Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission and staff discussed in further detail the required transfer fees paid out by the Signature at PGA West residential development pursuant to their Development Agreement with the City to mitigate the loss of transient occupancy tax, as the property was developed as a residential development in place of a hotel as it was originally contemplated and zoned for zoning. Motion — A motion was made and seconded by Commissioners Anderson/Mast to receive and file fiscal year 2023/24 budget update report. Motion passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Mills). COMMISSIONER WAY LEFT THE MEETING AT 6.00 P.M. STUDY SESSION — Continued 2. DISCUSS THE 2024 ANNUAL COMMUNITY WORKSHOP AND 2024/25 BUDGET PROCESS Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission and staff discussed the two additional sessions for strategic planning mentioned at the City's 2024 Community Workshop, which dates for both sessions are still to be decided. Mrs. Martinez said that as soon as dates are set, they would be shared with the Commission. DEPARTMENTAL REPORTS — All reports are on file in the Finance Department. 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 APRIL 3, 2024 SPECIAL MEETING Commissioner Batavick suggested meetings for the 10-year projection task force, consisting of Commissioners Anderson, Batavick, and Dorsey, not take place until the City's fiscal year 2024/25 budget has been finalized. Finance Director Martinez said that holding a meeting in May or June would be a great starting point to gather ideas on how the financial projections would be presented. COMMISSIONERS' ITEMS The Commission discussed creating a list of CIP project recommendations for Council's consideration. Commissioner Batavick said he could meet with staff to create the list of recommendations for the Commission's discussion and review at the May 8 Commission meeting. The Commission concurred. Further discussion followed on the City's historical practices when funding for a CIP project has been over or underestimated. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Batavick/Mast to adjourn this meeting at 6:20 p.m. Motion passed: ayes — 5, noes — 0, abstain — 0, absent — 2 (Mills and Way). Respectfully submitted, Jessica Delgado, Administrative Technician/Commission Secretary City of La Quinta, California FINANCIAL ADVISORY COMMISSION MINUTES Page 4 of 4 APRIL 3, 2024 SPECIAL MEETING