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2024 05 08 FAC.— {a ey-ibe F-- ERL — 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, MAY 8, 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, Kiehl, 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 APRIL 3, 2024 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED FEBRUARY 29, 2024 BUSINESS SESSION APPROVE THE FISCAL YEAR 2024/25 MEETING DATES FINANCIAL ADVISORY COMMISSION AGENDA Page 1 of 4 MAY 8, 2024 STUDY SESSION 1. DISCUSS THE FISCAL YEAR 2024/25 INVESTMENT POLICY 2. DISCUSS THE FISCAL YEAR 2024/25 PRELIMINARY PROPOSED BUDGET DEPARTMENTAL REPORTS 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES 2. FOURTH QUARTER 2023 (OCTOBER-DECEMBER) SALES TAX UPDATE FOR THE CITY OF LA QUINTA COMMISSIONERS' ITEMS ADJOURNMENT The La Quinta Financial Advisory Commission will hold a special meeting on June 5, 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 May 8, 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 May 3, 2024. DATED: May 3, 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 https://www.laguintaca.gov/our-city/city-qovernment/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. FINANCIAL ADVISORY COMMISSION AGENDA Page 2 of 4 MAY 8, 2024 PUBLIC COMMENTS — INSTRUCTIONS Members of the public may address the Commission on any matter listed or not listed on the agenda as follows: 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 FINANCIAL ADVISORY COMMISSION AGENDA Page 3 of 4 MAY 8, 2024 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 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 MAY 8, 2024 CONSENT CALENDAR ITEM NO. 1 FINANCIAL 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). BUSINESS SESSION FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 APRIL 3, 2024 SPECIAL MEETING 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 Commissioner Batavick suggested meetings for the 10-year projection task force, consisting of Commissioners Anderson, Batavick, and Dorsey, not take place until the FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 APRIL 3, 2024 SPECIAL MEETING 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 CONSENT CALENDAR ITEM NO. 2 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING' May 8, 2024 STAFF REPORT 4GENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED FEBRUARY 29, 2024 RECOMMENDATION Receive and file revenue and expenditure report dated February 29, 2024. EXECUTIVE SUMMARY • The report summarizes the City's year-to-date (YTD) revenues and period expenditures for February 2024 (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, including carryovers from the prior fiscal year. 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. Top Five Revenue/Income Sources for Februa General Fund Non -General Fund Property Tax in lieu of Vehicle License Fees $ 2,815,553 CVAG (Dune Palms Construction Reimbursement) $ 840,502 Measure G Sales Tax $ 1,677,790 SilverRock Green Fees $ 635,799 Sales Tax $ 1,273,172 Allocated Interest $ 557,553 Transient Occupancy (Hotel) Tax $ 1,181,654 Gas Tax $ 174,883 Franchise Tax- Cable Television $ 157,004 Citizens' O tion for Pubic Safe COPS Grant $ 94,492 Top Five Expenditures/Outlays for Februa General Fund Non -General Fund Sheriff Contract (October-Novemberr) $ 1,066,806 Capital Improvement Program - Construction(t) $ 956,221 X-Park Programming (January -March) $ 101,020 Machinery & Equipment - Golf Carts (SRR) $ 914,605 Equipment (Wellness Center) $ 98,369 SilverRock Maintenance $ 212,343 Parks Landscape Maintenance $ 67,311 Capital Improvement Program-Design(2) $ 83,794 Golf Tournament $ 57,838 Lighting & Landscape Maintenance $ 74,798 (')CIP Construction: XPark, Cove Trails parking lot improvements, Dune Palms bridge. (Z)CIP Design: Consulting expenses associated with multiple ongoing capital improvement projects such as Fritz Burns Park, Dune Palms low water crossing, Cultural Campus. February 2024 Revenues Comparison to 2023 Percent of Percent of MTD YTD Budget YTD Budget General Fund (GF) $7,722,185 $37,678,968 48.01 % $36,229,873 49.26% All Funds $10,303,573 $75,505,132 38.32% $61,719,635 33.44% February 2024 Expenditures Comparison to 2023 Percent of Percent of MTD YTD Budget YTD Budget General Fund $3,023,879 $30,147,734 30.45% $23,239,930 22.44% Payroll (GF) $1,186,517 $7,945,338 59.34% $8,319,986 60.29% All Funds $6,195,369 $78,437,411 34.37% $55,198,808 24.99% 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 February 29, 2024 ATTACHMENT 1 'd 10XNIA 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: For Fiscal: 2023/24 Period Ending: 02/29/2024 Revenue Summary Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Used 78,478,100 78,478,100 7,722,185 37,678,968 -40,799,132 48.01% 15,000 15,000 0 -8,794 -23,794 58.63% 2,458,600 2,458,600 174,883 1,603,313 -855,287 65.21% 2,922,000 2,922,000 307 206,311 -2,715,689 7.06% 2,500 2,500 0 -179 -2,679 7.17% 156,000 336,349 0 180,347 -156,002 53.62% 101,500 101,500 94,492 127,398 25,898 125.52% 2,992,000 2,992,000 0 2,542,766 -449,234 84.99% 50,000 50,000 0 0 -50,000 0.00% 70,000 70,000 278 22,534 -47,466 32.19% 2,028,000 2,028,000 0 765,905 -1,262,095 37.77% 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 1,592 10,751 -9,749 52.45% 0 0 57 5,153,032 5,153,032 0.00% 55,000 55,000 0 13,431 -41,569 24.42% 0 0 0 -165 -165 0.00% 1,401,500 1,401,500 88,216 1,196,406 -205,094 85.37% 30,000 30,000 0 -3,375 -33,375 11.25% 20,000 20,000 1,130 52,149 32,149 260.75% 36,000 1,423,009 0 38,877 -1,384,132 2.73% 1,520,000 1,520,000 41,943 158,441 -1,361,559 10.42% 751,500 751,500 21,060 155,397 -596,103 20.68% 501,500 501,500 12,420 44,403 -457,097 8.85% 100,000 100,000 3,970 13,498 -86,502 13.50% 252,500 252,500 9,560 31,636 -220,864 12.53% 1,000 1,000 0 -71 -1,071 7.10% 100 100 0 -7 -107 6.69% 151,500 151,500 3,725 13,193 -138,307 8.71% 101,000 101,000 3,236 11,969 -89,031 11.85% 154,000 154,000 5,938 81,566 -72,434 52.97% 2,500 2,500 0 1,953 -547 78.12% 0 0 557,553 4,438,019 4,438,019 0.00% 1,100 1,100 0 0 -1,100 0.00% 17,950,700 89,820,762 840,502 13,109,281 -76,711,481 14.59% 1,500 1,500 0 -5 -1,505 0.36% 1,685,000 1,685,000 0 775,064 -909,936 46.00% 2,256,708 2,256,708 2,952 1,545,253 -711,455 68.47% 470,000 470,000 0 496,660 26,660 105.67% 1,362,230 1,362,230 0 680,073 -682,157 49.92% 5,277,950 5,277,950 695,426 3,929,237 -1,348,713 74.45% 87,000 87,000 0 81,446 -5,554 93.62% 6,000 6,000 0 4,931 -1,069 82.18% 20,000 20,000 0 100,758 80,758 503.79% 100,000 100,000 22,146 252,776 152,776 252.78% 123,608,488 197,045,908 10,303,573 75,505,132 -121,540,776 38.32% 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: 02/29/2024 Expenditure Summary Variance Original Current Period Fiscal Favorable Percent Fund Total Budget Total Budget Activity Activity (Unfavorable) Used 101- GENERAL FUND 72,828,750 99,002,131 3,023,879 30,147,734 68,854,397 30.45% 201- GAS TAX FUND 2,802,400 4,811,461 93,806 1,835,421 2,976,040 38.15% 202 - LIBRARY & MUSEUM FUND 2,240,160 4,934,483 20,374 619,874 4,314,609 12.56% 203 - PUBLIC SAFETY FUND (MEAS 0 41,687 0 9,687 32,000 23.24% 210 - FEDERAL ASSISTANCE FUND 156,300 336,649 0 180,349 156,300 53.57% 212 - SLESA (COPS) FUND 100,000 100,000 6,560 28,790 71,210 28.79% 215 - LIGHTING & LANDSCAPING F 3,186,915 3,353,915 190,677 1,528,163 1,825,752 45.56% 220 - QUIMBY FUND 0 445,176 0 0 445,176 0.00% 221- AB 939 - CALRECYCLE FUND 150,000 150,000 18,507 111,659 38,341 74.44% 223 - MEASURE A FUND 1,865,000 4,810,319 0 2,602,239 2,208,080 54.10% 226 - EMERGENCY MANAGEMENT 12,000 12,000 0 9,950 2,050 82.92% 227 - STATE HOMELAND SECURIT) 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 0 25,316 28,684 46.88% 237 - SUCCESSOR AGCY PA 1 ADM 0 0 0 5,850 -5,850 0.00% 241- HOUSING AUTHORITY 1,596,340 1,996,340 111,825 1,255,007 741,333 62.87% 243 - RDA LOW -MOD HOUSING FL 250,000 300,000 0 0 300,000 0.00% 247 - ECONOMIC DEVELOPMENT 1 31,500 31,500 1,600 22,005 9,495 69.86% 249 - SA 2011 LOW/MOD BOND FI 250,000 3,824,192 0 3,582,426 241,766 93.68% 250- TRANSPORTATION DIF FUNC 550,000 1,669,775 0 401,335 1,268,440 24.04% 251- PARKS & REC DIF FUND 650,000 1,121,285 0 7,715 1,113,570 0.69% 252 - CIVIC CENTER DIF FUND 0 249,925 0 0 249,925 0.00% 253 - LIBRARY DEVELOPMENT DIF 15,000 15,000 0 0 15,000 0.00% 254 - COMMUNITY & CULTURAL C 0 125,000 0 0 125,000 0.00% 259 - MAINTENANCE FACILITIES D 180,000 180,000 0 0 180,000 0.00% 270 - ART IN PUBLIC PLACES FUNC 233,000 742,711 14,652 75,425 667,287 10.16% 310 - LQ FINANCE AUTHORITY DEE 1,100 1,100 0 0 1,100 0.00% 401- CAPITAL IMPROVEMENT PR( 17,950,700 84,998,963 1,083,967 13,141,675 71,857,288 15.46% 501- FACILITY & FLEET REPLACEM 1,448,750 2,331,044 41,282 328,349 2,002,694 14.09% 502 - INFORMATION TECHNOLOG' 3,082,620 3,277,620 100,393 1,347,822 1,929,798 41.12% 503 - PARK EQUIP & FACILITY FUN 2,242,200 3,092,200 8,594 683,017 2,409,183 22.09% 504 - INSURANCE FUND 1,118,000 1,118,000 1,143 1,107,755 10,245 99.08% 601- SILVERROCK RESORT 5,034,993 5,034,993 1,475,432 4,345,139 689,854 86.30% 760 -SUPPLEMENTAL PENSION PL 12,850 12,850 0 12,833 17 99.87% 761- CERBT OPEB TRUST 1,800 1,800 0 782 1,018 43.46% 762 - PARS PENSION TRUST 30,000 30,000 2,678 20,657 9,343 68.86% Report Total: 118,084,878 228,216,619 6,195,369 78,437,411 149,779,208 34.37% 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 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, AB1379 / SB1186 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 /o 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: May 8, 2024 STAFF REPORT AGENDA TITLE: APPROVE THE FISCAL YEAR 2024/25 MEETING DATES RECOMMENDATION Approve the fiscal year 2024/25 meeting dates. EXECUTIVE SUMMARY • Annually the Financial Advisory Commission (FAC) and staff discuss and select meeting dates for the following fiscal year. The FAC shall meet quarterly with the ability to schedule special meetings as needed throughout the year. FISCAL IMPACT FAC members are eligible to receive $75 per member per meeting attended. The proposed 2024/25 budget will be $3,700 for four regularly scheduled quarterly meetings plus an allowance for three special meetings per year for a seven -member Commission. DAUKUKUUNWANALYSIS The FAC shall meet quarterly and may schedule additional special meetings as needed. Meeting dates for the current fiscal year 2023/24 are as follows: August 9, 2023 — Wednesday October 4, 2023 — Wednesday, proposed special meeting November 8, 2023 — Wednesday December 20, 2023 — Wednesday, proposed special meeting February 7, 2024 — Wednesday April 3, 2024 — Wednesday, proposed special meeting May 8, 2024 — Wednesday June 5, 2024 — Wednesday, proposed special meeting Proposed Meeting dates for the next fiscal year 2024/25 are as follows: August 14, 2024 — Wednesday October 2, 2024 — Wednesday, proposed special meeting November 13, 2024 — Wednesday December 4, 2024 — Wednesday, proposed special meeting February 12, 2025 — Wednesday April 9, 2025 — Wednesday, proposed special meeting May 7, 2025 — Wednesday June 11, 2025 — Wednesday, proposed special meeting ALTERNATIVES - The FAC may amend the proposed meeting dates. Prepared by: Claudia Martinez, Finance Director STUDY SESSION ITEM NO. 1 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING May 8, 2024 STAFF REPORT AGENDA TITLE: DISCUSS THE FISCAL YEAR 2024/25 INVESTMENT POLICY 'COMMENDATION Discuss the Fiscal Year 2024/25 Investment Policy. EXECUTIVE SUMMARY • As part of their work plan, and as stated in Section XVIII of the City's Investment Policy (the Policy), the Financial Advisory Commission (FAC) is asked to review the Policy annually. • Recommended revisions are also reviewed by the City Manager and City Attorney. • By City Code, City Council must adopt the policy by the end of June of each year. FISCAL IMPAC i -None. BACKGROUND The City has been awarded the Investment Policy Certificate of Excellence from the Association of Public Treasurers of the United States and Canada (APT US&C), and the policy has been certified by the California Municipal Treasurers Association (CMTA). With these recognitions the City believes the policy is sound and generally not in need of major revisions. In addition, there were no new regulatory changes in FY 2023/24 that impacted the City's policy and would need to be noted. Therefore, staff recommends only operational changes to the current policy that still remain within the legal bounds of California government code, protect the safety and liquidity of the portfolio, and allow staff to maximize yield when prudent. The following edits, along with punctuation or format changes and updates to the dates, are identified as red -lined in Attachment 1: • Section V Maximum Maturities: Added the ability to go up to 30 days past the 5- year maximum in order to allow for purchases of certain investments that have maturity dates more than five years beyond the settlement date. For example, if a 5-year Certificate of Deposit published in May 2024 with a maturity date of May 26, 2029, and settlement of May 24, 2024, technically the City would not currently be able to buy it as this is a 5-year plus 2-day timeframe. • Section X Permissible Deposits and Investments: Staff is recommending that the annual limit for Government Agency Securities be raised from $20 million to $30 million per issuer. In order to allow for diversification, and to be able to purchase securities that offer the best yield for the City at any particular moment in time, the City needs additional purchasing power in these agency bonds. The City's portfolio has grown from approximately $163 million in 2019 to $222 million in 2024, and currently is at max in two of the four allowed agencies. This hinders staff's ability to select the best investment offered. There is no limit on this investment class in the California Government Code §53601(f). • Edit to Appendix D-Approved Financial Institutions: Bank of the West was acquired by BMO and transition to the new name was completed in the Fall of 2023; BMO Commercial Bank was added to the list for 2023/24, and now Bank of the West is being removed. In addition, during 2023/24 the City transitioned its investment holdings from BNY Mellon to US Bank Trust Company, which was already an approved custodial bank for the City. BNY Mellon is being removed from the list. • Edit Appendix C-Segregation of Major Investment Responsibilities: Aligned a job title to match City Authorized Positions list — changed Accounting Manager to Finance Manager. 4LTERNATIVES The policy has been recognized by APT US&C and CMTA as being comprehensive as written, and therefore no alternatives are recommended at this time. Prepared by: Rosemary Hallick, Principal Management Analyst Approved by: Claudia Martinez, Finance Director Attachment: 1. Draft Investment Policy for Fiscal Year 2024/25 (red -lined) Fiscal Year 2023-2024 2024/2025 Table of Contents Section Topic Page Executive Summary 1 I General Purpose 2 II Investment Policy 2 III Scope 2 IV Objectives 3 V Maximum Maturities 5 VI Prudence 5 VII Authority 5 VIII Ethics and Conflicts of Interest 6 IX Authorized Financial Dealers and Institutions 6 X Permissible Deposits and Investments 7 XI Investment Pools 10 XII Payment and Custody 10 XIII Interest Earning Distribution Policy 11 XIV Internal Controls and Independent Auditors 11 XV Reporting Standards 12 XVI Review of Investment Portfolio 13 XVII Financial Advisory Commission — City of La Quinta 13 XIII Investment Policy Adoption 13 Appendices Top i c Page A Municipal Code Ordinance 2.70 — Financial Advisory Commission 14 B Municipal Code Ordinance 3.08 — Investment of Moneys and Funds 16 C Segregation of Major Investment Responsibilities 18 D Listing of Approved Financial Institutions 19 E Investment Management Process and Risk 20 F Glossary 22 CITY OF LA QUINTA Investment Policy Fiscal Year 2023/2024 2024/2025 EXECUTIVE SUMMARY The general purpose of this Investment Policy is to provide the rules and standards that must be followed in administering the City of La Quinta's (the "City") deposits and investments. The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City, with the exception of bond proceeds and those noted in section III herein. It is the City's policy to deposit and invest public funds in a manner that shall provide safety of principal, liquidity to meet the City's obligations and requirements that may be reasonably anticipated, and a risk -based market rate of return. Authority to manage the City's investment portfolio is derived from the City Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The City Manager, City Treasurer, and City employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis, before the end of each fiscal year (June). Page 1 of 27 City of La Quinta Statement of Investment Policy July 1, 2023 4 through June 30, 2024 5 Adopted by the City Council on June 20, 2023 18, 2024 I. GENERAL PURPOSE The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. II. INVESTMENT POLICY It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall conform to all State and local statutes governing the investment of public funds and set forth the permissible deposits and investments of the City's funds and the limitations thereon. III. SCOPE Except noted below, this Investment Policy applies to all deposits and investments of the City of La Quinta, the Successor Agency to the City of La Quinta Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities. These funds are reported in the City's Annual Comprehensive Financial Report (ACFR) and include all funds within the following fund types: ➢ General ➢ Special Revenue ➢ Capital Projects ➢ Debt Service ➢ Enterprise ➢ Internal Service ➢ Trust and Agency ➢ Any new fund types and fund(s) that may be created. Financial assets and investment activity not subject to this policy The City's Investment Policy does not apply to the following: ➢ Cash and Investments raised from Conduit Debt Financing; ➢ Funds held in trust in the City's name in pension or other post -retirement benefit programs; ➢ Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects; ➢ Short or long-term loans made to other entities by the City or Agency; ➢ Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency; and ➢ Investment of bond proceeds. The City's Investment Policy shall not govern bond proceeds and bond reserve fund investments. California Code Section Page 2 of 27 5922(d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions. Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity, and to rebate excess earnings, if necessary. M OBJECTIVES The objectives of the City's investment activity, in order of priority and importance, are: A. Safety of Principal Safety of principal is the foremost objective of the City's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments. The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. Investment in any single security type or single financial institution shall be limited to the maximum percentages and/or dollar amounts as noted in Section X. 1. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by: • Limiting investments to investment grade securities as permitted in Section X; and • Diversification- reducing concentration risk by limiting the totalamount invested in individual issuers of securities in the investment portfolio so that potential losses due to issuer failure or securities downgrades may be minimized. 2. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by: Page 3 of 27 • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and • Investing operating funds primarily in shorter -term securities. 3. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X). A discussion of the City's investment process and risk is presented in Appendix E. B. Provide Liquidity The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. The City's policy is to generally hold securities and other investments to maturity. However, securities may be sold prior to maturity under certain circumstances as follows: • A security with declining credit quality can be sold early to minimize loss of principal. • Unanticipated liquidity needs of the portfolio require that one or more securities be sold. • When a sale/repurchase is fiscally advantageous based on market conditions and fits the needs of the portfolio C. Yield a Risk -Based Market Rate of Return The City's investment portfolio shall be structured with the objective of yielding a risk -based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above. The City's Investment Policy does not specify a single benchmark as a goal ortarget yield for a rate of return on its investment portfolio. The portfolio's rates of return will be influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions. Performance Standards: As a basis for comparison only, the Treasurer's quarterly reports will display the rates of return on the three-month Bill, six-month Bill, the one and two-year U.S. Treasury Note, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. Page 4 of 27 The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. V. MAXIMUM MATURITIES It is the City's policy to generally hold securities and other investments until maturity. This buy -and - hold policy shall not prevent the sale of a security as listed in section IV.B The general buy -and -hold strategy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably anticipated cash needs. The City shall follow Title 5 of the California Government Code §53601 (the "State Code") regarding maximum maturities, in that "no investment shall be made in any security... that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as part of an investment program approved by the legislative body no less that three months prior to the investments". In order to accommodate the occasional occurence of settlement dates slightly exceeding five (5) years to final maturity, the City may invest in any security that has a maturity of five (5) years plus up to thirty (30) days from settlement date. VI. PRUDENCE and FIDUCIARY DUTY The City shall follow the State Code §53600.3 regarding fiduciary duty and the Prudent Investor Standard as follows: Except as provided in subdivision (a) of §27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. VII. AUTHORITY Authority to manage the City's investment portfolio is derived from Chapter 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy. The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may Page 5 of 27 engage in an investment transaction except as provided under the terms of this Investment Policy (see Appendix C) and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. VIII. ETHICS AND CONFLICTS OF INTEREST The City Manager, City Treasurer, and City employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City will maintain compliance with the procedures set forth in the Conflicts of Interest and Acceptance of Gifts and other Gratuities section of the City of La Quinta Personnel Manual and the City's Municipal Code Chapter 2.60 Conflicts of Interest. Any questionable activity or relationship shall be reported immediately; reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter. The City Manager, City Treasurer, and City employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the account holder with the City are the same as those that are available to the public in general, or to all employees as a result of contract negotiations. IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes, as well as a list of approved broker/dealers. 1. Broker/Dealers who desire to become bidders for offer direct investment transactions must supply the City with the following: • Current audited financial statements; • Proof of Financial Industry Regulatory Authority (FINRA) Certification; • Proof of State of California registration; • Resume of financial broker; and • Completion of the City of La Quinta Broker/Dealer Questionnaire, which contains a certification of having read the City's Investment Policy. The City Treasurer or designee shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and/or individual(s) conducting investment related business. The City Treasurer or designee may also contact the following agencies during the verification process: • Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1- 800-289-9999). Page 6 of 27 • State of California Department of Financial Protection and Innovation (1- 866-275- 2677). A professional investment manager or management firm, if engaged by the City pursuant to Section X of this policy, may utilize their own list ofapproved broker/dealers on the condition that any such list is provided to the City upon request. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. An annual review of the financial condition and registrations of approved broker/dealers will be conducted by the City Treasurer or designee. Current audited financial statements and/or System and Organizational Controls (SOC-1 and/or SOC-2) internal control reports may be maintained on file for each financial institution and broker/dealer with which the City conducts business. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix D, "Listing of Approved Financial Institutions"): • Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF). • Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report (Consolidated Reports of Condition and Income) if requested. These reports can also be found at: https://cdr.ffiec.gov/public/ManageFacsimiles.aspx The City shall not invest or deposit in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateral ization in public monies. 2L PERMISSIBLE DEPOSITS AND INVESTMENTS It is the City's policy to follow Title 5 of the California Government Code (the "State Code") in regard to allowable securities, and to be sufficiently diversified with regard to security type and issuer. Permissible deposits and investments, as allowed by Chapter 4, Part 1, Division 2, Title 5 (hereinafter cited by §), include, but are not limited to, the following list. The State Code can be directly referenced at https:Hleginfo.legislature.ca.gov/ Page 7 of 27 Checking. Savings. and Sweep Accounts - The City will only maintain checking and savings accounts with state or national banks, savings associations, federal associations, and/or credit unions in accordance with §53635.2. • Collateralization: The amount of the City's deposits or investments not insured by the FDIC shall be collateralized by securities in accordance with §53652. The Treasurer may invest in an interest -bearing active deposit account as approved in §53632. The deposit account must be collateralized with securities that are in accordance with §53632.5. In addition, the market value of the collateralized securities must be maintained in accordance with §53652 and be held by a custodian in accordance with the requirements of §53656. The proportion of the City's share of the deposit account shall be determined in accordance with §53658. Certificates of Deposit (Negotiable and Non-negotiable) — As authorized in §53601(i), the City may invest in Non -Negotiable and Negotiable Certificates of Deposits (CD) up to 30% of the overall portfolio. In no instance shall a CD or combined CDs with a single issuer exceed the FDIC or NCUSIF insurance limit of $250,000. U.S. Treasury Bills, Notes, and Bonds — As authorized in §53601(b), the City may invest in U.S. Treasury bills, notes, and bonds directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy provides for investments in U.S. Treasury issues of 100% of the portfolio. U.S. Government Agency Securities and Federal Government Securities — As authorized in §53601(f), the City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or LSE's). These securities may not be backed by the full faith and credit of the U.S. Government (with the exception of Government National Mortgage Association (GNMA) securities). Examples of LSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal Home Loan Bank (FHLB), Federal Farm Credit Banks Funding Corporation (FFCB), Federal Agricultural Mortgage Corporation (FAMC), Tennessee Valley Authority (TVA), and GNMA securities. The City's Investment Policy allows investment only in securities of GNMA, FNMA, FHLMC, FHLB, and FFCB. For Fiscal Year 2022-23 2024/25, the maximum face amount per issuer is $20 30 million and the maximum face amount per purchase is $10 million. Prime Commercial Paper — As authorized in §53601(h), a portion of the City's portfolio may be invested in commercial paper of the highest rating as provided for by a nationally recognized statistical rating organization (NRSRO) such as Moody's, Fitch, or Standard & Poor's (S&P). There are a number of other qualifications regarding investments in commercial paper based on the financial strength and size of the corporation and the size of the investment. The City limits on prime commercial paper are as defined in the State Code. Page 8 of 27 Local Agency Investment Fund (LAIF) —As authorized in §16429.1 and by LAIF policies, local government agencies are each authorized to invest up to the deposit limit as designated by the California State Treasurer. The City Treasurer may not invest more than the maximum amount per account as allowed byLAIF. Money Market Mutual Funds — As authorized in §53601(1), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of thethree largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). Corporate Notes — As authorized in §53601(k), local agencies may invest in corporate notes. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations: • Maximum 30% of the portfolio; • Maturities shall not exceed five years from date of purchase; • Eligible notes shall be regularly quoted and traded in the marketplace; • Eligible notes shall be in a rating category of "AX or better by an NRSRO; • The maximum aggregate investment in each issuer shall not exceed $5 million (PAR value), or no more than 10% of the total investment assets in the commercial paper and the medium -term notes of any single issuer. Professionally Managed Account(s) — The City Treasurer may place up to 50% of the portfolio with a professional portfolio management/investment management firm (firm). The firm will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a public request for proposal (RFP). The firm shall have: • An established professional reputation for asset or investment management; • Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; • Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; • Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and Page 9 of 27 • Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940 Before engagement by the City and except as may be specifically waived or revised, the firm shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions: • The firm may be granted the discretion to purchase and sell investment securities in accordance with this Investment Policy; • The firm is not required to adhere to a buy -and -hold policy; and • The firm does not need City Manager or City Treasurer approval to make permissible investments. Local Agency Bonds and California Local Agency Obligations — As authorized in §53601(a) and §53601(e), the City may invest in California local agency obligations. §53601(a) pertains to investing in bonds issued by a local agency, or by the department, board, agency or authority of the local agency. §53601(e) pertains to investing in bonds and other defined indebtedness of any local agency, or department, board, agency or authority of the local agency within the State of California. The Agency obligations must be invested in the long-term rating category of A or better by an NRSRO. In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers. L-4411►11*1dIVi1=1►ki1O107I.I There are three (3) types of investment pools: • State -run pools (e.g., LAIF); • Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools, and Joint Powers Authorities such as the California Asset Management Program (CAMP)); and • Pools that are operated for profit by third parties (e.g. money market funds). The City's Investment Policy permits investment in pools and money market funds as authorized by State Code §16429.1, §53601(1) and §53601(p). The City shall engage qualified third -party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds received from the City for a purchase to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. Page 10 of 27 Even though ownership is evidenced in book -entry form rather than by actual certificates, this procedure is commonly referred to as the delivery versus payment (DVP) method for the transfer of securities. XIII. INTEREST EARNING DISTRIBUTION POLICY Interest earnings are generated from pooled investments and specific investments. The following provisions apply to the calculation and distribution of interest earnings. 1. Pooled Investments — It is the general policy of the City to pool all available operating cash of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings as a payment to each fund of an amount based on the month -end cash balance included in the common portfolio for the earning period. 2. Specific Investments — Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV. INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: • Safeguard assets; • The orderly and efficient conduct of its business, including adherence to management policies; • Prevention or detection of errors and fraud; • The accuracy and completeness of accounting records; and • Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: • Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. • Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. • Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. • Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes Page 11 of 27 place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. • Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities (Appendix C). • Written confirmation of telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax or email if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow- up. • Development of a wire transfer agreement with the City's bank and third -party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The system of internal controls developed by the City shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains to cash and investment activities, and the City Treasurer's response shall be provided to the City's Financial Advisory Commission for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Financial Advisory Commission and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix C, "Segregation of Major Investment Responsibilities." A 9 1 [ 1 The City Treasurer shall submit a quarterly Treasurer's Report to the City Council and the Financial Advisory Commission that includes all cash and investments under the authority of the Treasurer. In addition, the City Treasurer or designee shall ensure all investment transactions are reported on a monthly basis as they occur throughout the quarter. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following: • A certification by the City Treasurer; • A listing of purchases and sales/maturities of investments; Page 12 of 27 • Cash and Investments categorized by authorized investments; LAIF will also be provided quarterly and show yield and maturity; • Comparison of month -end actual holdings to Investment Policy limitations; • A two-year list of historical interest rates. The securities held by the City must be in compliance with this Policy at the time of purchase. Due to market conditions, some securities may no longer comply subsequent to the date of purchase, therefore a quarterly review of the portfolio will be conducted to identify any securities which may have fallen out of compliance. Any major incidences of noncompliance identified during such review will be reported to the Financial Advisory Commission for confirmation of staff course of action. /_1 W_1 DIVA 6Y•]: 94141 LY, I LY,1 Ec1•91:•] ki Qy 11 WY•] a W_T011110111 The Financial Advisory Commission (FAC) is composed of seven members from the public that are appointed by the City Council. The FAC's membership, qualifications, and powers and duties are prescribed in Chapter 2.70 of the La Quinta Municipal Code and included in this policy as Appendix A. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each commissioner will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the FAC. All commissioners shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest. XV111, INVESTMENT POLICY ADOPTION The City's Investment Policy will be reviewed annually by the City's Financial Advisory Commission and the City Treasurer. The Financial Advisory Commission will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Financial Advisory Commission, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. The Investment Policy shall be adopted by resolution of the City Council annually before the end of June of each year. Page 13 of 27 APPENDIX A City of La Quinta Municipal Code Chapter 2.70 FINANCIAL ADVISORY COMMISSION 2.70.010 General rules regarding the financial advisory commission. Except as set out below, see Chapter 2.06 for general provisions. 2.70.020 Number of members. The financial advisory commission ("FAC") shall initially consist of seven members appointed by, and serving at the will of, the city council. The city council may increase or decrease the number of members from time to time but in no event shall the membership exceed nine members or be less than five members. 2.70.30 Qualifications of members. A. In addition to the qualification requirements set forth in Section 2.06.040 of this code, a minimum of three of the members shall be finance professionals and shall have a verifiable background in finance and/or securities, preferably with knowledge and/or experience in markets, financial controls and accounting for securities. B. For those applying for the professional position, background information will be requested, and potential candidates must agree to a background check and verification by the city manager or designee. 2.70.040 Powers and duties. A. The principal functions of the FAC are: 1. Review at least annually the city's investment policy and recommend appropriate changes; 2. Review at least quarterly the treasury report and note compliance with the investment policy and adequacy of cash and investments for anticipated obligations; 3. Receive and consider other reports provided by the city treasurer; 4. Meet with the independent auditor after completion of the annual audit of the city's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities; 5. Review at least annually the revenue derived from the one percent (1 %) transactions and use tax instituted by voters in November 2016 to ensure these funds are used to provide services, programs and capital projects in the city of La Quinta. Page 14 of 27 6. Serve as a resource for the city treasurer on matters such as proposed investments, internal controls, use of or change of financial institutions, custodians, brokers and dealers. B. The FAC will report to the city council after each meeting either in person or through correspondence at a regular city council meeting. (Ord. 556 § 1, 2017) 2.70.050 References to the Investment Advisory Board. If any other chapter(s) or section(s) in this code refers to the Investment Advisory Board, that chapter(s) or section(s) shall be deemed to refer to the Financial Advisory Commission established by the ordinance amending chapter 2.70 of this code. Page 15 of 27 APPENDIX B City of La Quinta Municipal Code Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by Sections 53607 and 53608 of the California Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer, which, for purposes of this chapter, is defined in Section 2.12.010 of this code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under the city council adopted city investment policy and any provision of state law relating to the investing of general city funds, including, but not limited to, Sections 53601 and 53635 of the California Government Code, as said sections now read or may hereafter be amended, from moneys in the city treasurer's custody which are not required for the immediate necessities of the city and as he or she may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord.2 § 1 1982) 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be cancelled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 3.08.050 Reports. The city treasurer shall make a quarterly report to the city council of all investments made pursuant to the authority delegated in this chapter and as permitted by Section 53646(b)(1) of the Government Code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) Page 16 of 27 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the city council adopted investment policy and terms of any state law, including, but not limited to, Section 53608 of the Government Code, as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 36524 of the Government Code and any other applicable provisions of law. (Ord. 2 § 1, 1982) Page 17 of 27 APPENDIX C SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Responsible Parties Develop and recommend modifications to the City's City Treasurer, Principal Management Analyst, and formal Investment Policy Financial Advisory Commission Review City's Investment Policy and recommend City Council action Adopt formal Investment Policy Implement formal Investment Policy Review financial institutions and select investments Acknowledge investment selections Execute investment transactions Confirm wires City Manager and City Attorney City Council City Treasurer City Treasurer or Principal Management -Analyst City Manager or his/her designee City Manager, City Treasurer, or Principal Management Analyst Finance Aeee --At i gManager, Senior Accountant, or Administrative Technician Record investment transactions in City's accounting Finance records Aeeaunt+ng Manager or Senior Accountant Investment cerification- match broker confirmation to City's investment records City Treasurer or Principal Management Analyst Reconcile investment records to accounting records and bank statements Principal Management Analyst Finance Reconcile investment records to treasurer's report City Treasurer, ; Manager, or Principal of investments Management Analyst Finance Security of investments at City Manager or Administrative Technician Security of investments outside of City Third Party Custodian Review internal control procedures External Auditor Page 18 of 27 APPENDIX D Listing of Approved Financial Institutions Banking Services Custodian Services Deferred Compensation Broker/Dealer Services Government/Joint Powers Authority Pools Trustee Services Other Post Employment Benefits (OPEB) Trust Pension Trust - Administration -Bank of the West, San Francisco, CA (Banking Services) -Sunwest Bank, Irvine, CA (Banking Services - Dune Palms Mobile Estates) -BMO Commercial Bank -The Bank of New York Mellon/Pershing LLC U.S. Bank Trust Company, N.A. -Stifel -International City/County Management Association Retirement Corporation (ICMA-RC) dba MissionSquare Retirement -Stifel, Nicholaus, & Company, Inc. -Higgins Capital Management, Inc. -Great Pacific Securities -State of California Local Agency Investment Fund (LAIF) -California Asset Management Program (CAMP) -County of Riverside Pooled Investment Fund) -U.S. Bank Trust Company, NA(2) -California Employers' Retirement Benefits Trust (CERBT)/CalPERS -Public Agency Retirement Services (PARS) (')The County of Riverside Treasurer maintains one Pooled Investment Fund for all local jurisdictions having funds on deposit in the County Treasury. The City's fire funds, which are property taxes collected to fund fire services in the City, are kept in reserve with the County to be used as expenses are incurred. (2) U.S. Bank is the fiscal agent for all of the following bonds: 2013 (refunded in 2021), 2014 (refunded in 2021), 2016, and 2021 Successor Agency to the La Quinta Redevelopment Agency (RDA) Bonds. As of March 2024, U.S. Bank is the custodian for the City's investment portfolio. U.S. Bank is also the trustee and asset custodian for the PARS pension trust. As of January 29, 2022, U.S. Bank, National Association transitioned its Global Corporate Trust business to wholly owned subsidiary U.S. Bank Trust Company, National Association. Page 19 of 27 APPENDIX E INVESTMENT MANAGEMENT PROCESS AND RISK Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee each person, treasurer, or governing body authorized to make investment decisions on behalf of local agencies. Trustees are subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors). Risk is inherent throughout the investment process. There is investment risk associated with any investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity. Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer -term investments Another element of risk is liquidity risk. Instruments with call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities. Default risk represents the possibility that the borrower may be unable to repay the obligation as scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum. The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for anotheror Page 20 of 27 selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management. The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust. Source: Chapter II. Fund Management from the Local Agency Investment Guidelines Issued by California Debt and Investment Advisory Commission Page 21 of 27 APPENDIX F GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government -sponsored enterprises. ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of La Quinta. It includes combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. )gyp: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CDC: A time deposit with a specific maturity evidenced by a certificate. Large- denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. Page 22 of 27 DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non -interest -bearing money market instruments that are issued at discount and redeemed at maturity for full face value DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. GOVERNMENT SPONSORED ENTERPRISES (GSEs): Privately held corporations with public purposes created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy. Securities issues by GSEs carry the implicit backing of the U.S. Government, but they are not direct obligations of the U.S. Government. Typically referred to as 'Agency Bonds' or 'Agencies'. FNMAs or Fannie Mae (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FHLBs (Federal Home Loan Bank) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage -lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. FFCBs (Federal Farm Credit Bank) — Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. Page 23 of 27 FHLMCs or Freddie Mac (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly. FAMCs or Farmer Mac (Federal Agricultural Mortgage Corporation) - FAMC increases the availability and affordability of credit for the benefit of American agriculture and rural communities. They are the nation's premier secondary market for agricultural credit, providing financial solutions to a broad spectrum of the agricultural community, including agricultural lenders, agribusinesses, and other institutions that can benefit from access to flexible, low-cost financing and risk management tools. FAMC is regulated by the Farm Credit Administration. Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), and Tennessee Valley Authority notes (TVA's). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit per entity. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open- market operations. FEDERAL OPEN MARKET COMMITTEE (FOMQ: Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven -member Board of Governors in Washington, D.C., 12 regional banks and about 3,000 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass-throughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund: - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period, the minimum transaction is $5,000 and the City follows the state guidance for maximum total balance. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time Page 24 of 27 they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase -reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller - borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. NRSRO (NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONu: A credit rating agency recognized by the Securities and Exchange Commission (SEC). Examples include Fitch Ratings, Inc., Moody's Investor's Services, Inc., and S&P Global Ratings, among others. FFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker -dealers, banks and a few unregulated firms. Page 25 of 27 QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO) and REVERSE REPURCHASE AGREEMENTS (RRP or RevRelo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. SSAE 16: The Statement on Standards for Attestation Engagements No. 16 (SSAE 16) is a set of auditing standards and guidance on using the standards, published by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for redefining and updating how service companies report on compliance controls. The Service Organizational Control report (SOC-1) contains internal controls over financial reporting and is used by auditors and office controllers. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative -based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A non -interest- bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. Page 26 of 27 TREASURY BONDS: Long-term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10years. TREASURY NOTES: Medium -term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. Page 27 of 27 City of La Quinta STUDY SESSION ITEM NO. 2 FINANCIAL ADVISORY COMMISSION MEETING May 8, 2024 STAFF REPORT AGENDA TITLE: DISCUSS THE FISCAL YEAR 2024/25 PRELIMINARY PROPOSED BUDGET RECOMMENDATION Discuss the fiscal year 2024/25 preliminary proposed budget. EXECUTIVE SUMMARY • This first budget study session focuses on the General Fund and Internal Service Funds. This information will be presented to the City Council on May 21, 2024. • A second budget study session will be presented to the City Council on June 4, 2024 will cover Special Revenue Funds, Capital Funds, and Enterprise Funds of the City. • A second budget study session will be presented to the Financial Advisory Commission (FAC) on June 5, 2024, and will include all funds of the City. • All departments evaluated budget needs based on the City's priorities and operational needs when preparing their 2024/25 budgets. • Final budget adoption is scheduled for June 18, 2024. FISCAL IMPACT The preliminary General Fund budget projects a deficit of $538,365 with projected General Fund revenues of $80,714,300 (including Measure G sales tax) and proposed operational and capital expenditures of $81,252,665, with no unappropriated Measure G sales tax revenue assigned to reserves. BACKGROUND/ANALYSIS The goal of the first budget study session is to provide an overview of the General Fund and Internal Service Funds and review the use of Measure G sales tax revenues. Each department section contains notes to explain changes from 2022/23 actuals, changes in 2023/24, and projections for 2024/25. The annual budget outlines the City's financial resources and plan for the City's operations and services for the upcoming year. Community input is a crucial component to the budget process and helps the City develop a budget that reflects the priorities and values of La Quinta residents and businesses. The Financial Advisory Commission provides oversight of Measure G funds and assists with reviewing the 2024/25 operating and capital improvement budgets. To encourage citizen participation in public meetings, the 2024/25 budget schedule is available online at: https://www.laguintaca.gov/our-city/city-departments/finance/budqet/proposed-budget- 2024-25-timeline PUBLIC MEETING DATES FISCAL YEAR 2024/25 BUDGET Annual Community Workshop 2/22/2024 City Council Meeting 4/2/2024 Proposed Capital Improvement Program CIP Study Session Financial Advisory Commission Meeting 4/3/2024 Proposed Capital Improvement Program CIP Study Session Financial Advisory Commission Meeting 5/8/2024 Preliminary General Fund Revenue & Expense Projections City Council Meeting 5/21 /2024 Budget Study Session #1 (General Fund and Internal Service Funds focus City Council Meeting 6/4/2024 Budget Study Session #2 (All Appropriations- General Fund, Internal Service Funds, Enterprise, and Special Revenue Funds) 6/4/2024 Housing Authority Meeting Budget Study Session #1 Housin-q Funds Only) Financial Advisory Commission Meeting 6/5/2024 Final review of proposed Measure G sales tax uses Housing Commission Meeting 6/12/2024 Final Review of proposed Housing AuthoritV Budget City Council Meeting 6/18/2024 O eratin and CIP Budget Adoption Housing Authority Meeting 6/18/2024 Budget Adoption Attachment 1 provides a narrative of General Fund revenues and expenses, Internal Service Funds, and the Redevelopment Agency loan repayment to the City. Line item details for these revenues and expenses are located in Exhibit A of the Attachment. ALTERNATIVES The Commission may wish to request further information regarding specific items. Per State code the budget must be adopted prior to June 30. Prepared by: Claudia Martinez, Finance Director Attachment: 1. Fiscal Year 2024/25 Proposed Budget Overview ATTACHMENT 2024125 PROPOSED BUDGET STUDY SESSION #1 ta Qa�fra CALIFORNIA The first budget study session is designed to provide an overview of the General Fund and four Internal Service Funds (ISF's). Special Revenue, Capital, and Enterprise Funds will be presented on June 4, 2024. Exhibit A includes proposed revenue and expenditure details for all General Fund and Internal Service Funds. While there is continued uncertainty ahead, the FY 2024/25 Proposed Budget offers the Council, City Staff and the community a sense of optimism as we look forward to 2025. This budget invests in community priorities and continues robust City services that the community expects through balanced conservative fiscal strategies. This budget makes solid progress towards major capital improvement projects and utilizes reserve funds to continue making significant investments in road improvements, landscape and median improvements, and public amenities. The FY 2024/25 proposed budget was developed using a moderate approach to revenue projections, is responsive to community needs, and continues to fund and enhance services which are most important to our residents. The City will continue to focus on infrastructure investments and community priorities, while monitoring the state of the economy in order to shift resources if necessary. The proposed General Fund budget has a projected deficit of $538,365 as a result of conservative increases to revenue estimates along with expenditure projections that meet departmental needs for daily operations. Revenues * $ Less Operating/CIP Expenses Preliminary Budget Surplus Less Measure G Reserves 80,714,300 81,252,665 (538,365) The budget provides resources for public safety, daily operations, and capital improvements for the upcoming fiscal year. Projections are anticipated to change prior to budget adoption. The final proposed budget will be structurally balanced. REVENUES The City's revenue estimates for FY 2024/25 represent a $2,236,200 increase over the revised FY 2023/24 projections, revenues by category are summarized below: General Fund Revenues Taxes License & Permits Intergovernmental Charges for Services Fines & Assessment Other/Misc. Total Revenues 2023/24 2023/24 2024/25 Original Current & Proposed 62,630,000 62,630,000 63,270,000 2,521,300 2,521,300 2,386,500 9,178,000 9,178,000 11,253,000 963,200 963,200 1,028,700 465,500 465,500 341,000 2,720,100 2,720,100 2,435,100 78.478.100 78.478.100 80.714.300 Change Current v. Proposed 640,000 (134,800) 2,075,000 65,500 (124,500) (285,000) 2.236.200 The FY 2024/25 projected revenue outlook for the City is conservative, but takes into account how the economy has impacted the original estimates when the FY 2023/24 budget was adopted in June 2023. Responsible financial management and strong sales tax growth have put the City in a positive financial position, as this growth is needed to cover the increasing cost of existing service delivery. Major general revenues, such as property taxes, sales taxes, franchise fees, and transient occupancy taxes are projected by the Finance Department based on prior history, growth and inflation projections, and economic climate. Subject -matter experts such as the City's sales tax consultant, the County Assessor, and regional and local economic forecasts also assist in the projection of revenues. Taxes - The City's top three revenue sources for the General Fund total $54,590,000 (or 68% of the total $80,714,300) and continue to be: • Sales Taxes $27,500,000 • Transient Occupancy Taxes (TOT) $15,340,000 • Property Taxes $11,750,000 Sales tax revenue is highly sensitive to economic conditions, and reflects the factors that drive taxable sales, including levels of unemployment, consumer confidence, per -capita income, and business investment. Based on the current fiscal year budget, sales tax is anticipated to decrease by $700,000 and Measure G by $200,000. Property Tax revenues are based on a 1.0% levy on the assessed value of all real property. Under the terms of Proposition 13, approved in California in 1978, annual increases in the assessed value are capped at a maximum of 2% per year unless there is a change in ownership or new construction. Annual increases in assessed value are limited by either the California Consumer Price Index (CPI) or the 2% cap, whichever is less. Increased home values and sales have driven assessed valuations higher than the 2% cap. The City of La Quinta imposes a Transient Occupancy Tax (TOT) upon all hotel stays within the City boundaries at a rate of 11 % and short-term vacation rentals (STVR) at 10%. Major economic drivers for TOT revenue include room rates, average occupancy rates, and seasonal and non -seasonal tourism. The projected increase over the current year remains steady and is based on current trends and an increase in room rates. Licenses & Permits - Development -related permit fees largely account for the decrease of $134,800 in this category when compared to the current FY 2023/24 budget. While the economy continues to expand, we are beginning to see a slowdown in new projects due to construction costs and uncertainty about future economic trends; therefore, a flat projection is anticipated. Intergovernmental - The majority of the revenues in this category are derived from fire service property taxes restricted for fire services, which accounts for an increase of $2 million compared to last fiscal year largely due to an increase in Redevelopment Property Tax Trust Fund or RPTTF, and overall assessed valuations of property values. The revenue is recognized as current year collections or use of reserves; we are not anticipating using reserves based on current estimates provided by the County, similar to the prior fiscal year. Charges for Services - Leisure activities, wellness center memberships, and recreational sports fees have been increased due to current fiscal year activity and anticipated growth. In addition, services related to building and public works plan checks have been slightly decreased due to anticipated slower growth due to costs. Fines & Assessments - A overall decrease of $124,500 is anticipated for administrative citations due to increased compliance and enforcement measures with the STVR program and parking violations reflective of FY 2023/24 year-to-date activity. Use of Money & Property/Miscellaneous — The proposed budget for investment interest earnings recognizes the fluctuating interest rate environment generating higher expected yields, a moderate decrease is anticipated to account for the uncertainty of rates. At the close of the second quarter of FY 2023/24, the average portfolio rate of return was 3.35%, as compared to 1.98% the prior year. EXPENSES City staff and management have been prudent in their spending to ensure budgets are in line to end the current fiscal year with savings. While there is continued uncertainty ahead, the proposed budget reflects prudent investments in staffing and programs to reflect community needs and support Council's priority initiatives. This ensures the continued support and stability of our workforce, the key to delivering all of our City's programs and services, and ensuring that they are delivered efficiently and effectively. A summary of expenses by department is provided in the chart below, along with an explanation of major variances specific to departments. Overall increases affecting all departments include salary and benefits (annual step increases and CaIPERS rates), annual contract rates, utility rates, and inflationary impacts on goods and services. 2023/24 2023/24 2024/25 Change General Fund Expenditures Original Current Proposed Current v. Proposed City Council 317,900 317,900 346,400 28,500 City Manager Department 1,588,360 1,588,360 1,641,100 52,740 Marketing & Community Relations 1,814,660 1,814,660 1,932,600 117,940 City Attorney 800,000 800,000 800,000 - City Clerk Department 1,169,670 1,169,670 1,406,570 236,900 Human Resources 651,800 701,300 745,900 44,600 Police 18,583,800 18,618,300 19,643,300 1,025,000 Fire 9,889,120 10,247,120 10,547,110 299,990 Community Services Admin. 888,160 1,038,160 716,400 (321,760) Wellness Center Operations 837,870 837,870 683,600 (154,270) Recreational Programs & Events 1,578,150 1,578,150 1,956,000 377,850 Code Compliance/Animal Control 1,713,340 1,713,340 1,821,340 108,000 Public SafetyAdmin 322,300 322,300 269,890 (52,410) Parks Maintenance 4,144,950 4,219,450 4,649,300 429,850 Public Buildings 1,715,750 1,715,750 1,875,750 160,000 Public Works Administration 821,900 821,900 835,797 13,897 Public Works Dev. Services 532,900 532,900 539,383 6,483 Streets Department- Traffic 885,750 885,750 1,036,550 150,800 Engineering Services 1,007,600 1,404,100 1,234,400 (169,700) Design & Development Admin. 811,600 811,600 826,800 15,200 Planning 707,400 707,400 856,900 149,500 Building 1,398,700 1,398,700 1,513,600 114,900 The Hub 1,341,700 1,341,700 1,499,875 158,175 Finance 1,957,270 1,957,270 2,103,500 146,230 Centralized Services 17,348,100 44,253,481 21,770,600 (22,482,881) Total Expenditures 72,828,750 100,797,131 81,252,665 (19,544,466) Significant department adjustments include: Police and Fire: Police and fire contract expenses are incorporated using estimates from the County of Riverside, final numbers will be reflective of rates once contracts are approved. These combined budgets are a total of $30,190,410 or 37% of the proposed General Fund budget. Recreational Programs and Events: Increase in contract services for operations of the Fritz Burns pool and X Park due to annual salary and benefit increases. Parks Maintenance: Increase is due to the citywide landscape maintenance contract and utilities, ongoing maintenance costs for parks. Centralized Services_- This department budget captures citywide expenses. Annually this division's budget fluctuates most because it captures large one-time expenses such as pension and OPEB (Other Post -Employment Benefits) trust contributions, building improvements, land acquisition, and capital improvement carryovers for multi -year projects. The FY 2024/25 annual pension liability contribution of $200,000, which is a $730,000 decrease from the prior year and covers the Classic Tier, Tier 2 and PEPRA. In FY 2023/24, the City approved an additional discretionary payment of $10.2 million to pay down the current balance of the City's unfunded pension obligations, which has impacted the upcoming year's annual payment. This action places the City in a secure financial position as we navigate through the changing economic climate. In June, Staff will present additional options to pay down pension obligations during the FY 2023/24 budget update report by utilizing budget surplus. To continue the City's efforts of staff development and succession planning, managing CalPERS rate increases, responding to labor market adjustments, and to address staffing needs, an increase of $500,000 is recommended to execute these principles. INTERNAL SERVICE FUNDS (ISF) ISF are used to account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in these funds and charged to user departments based on personnel and large equipment assigned to each. The following is a summary of expenses by ISF: INTERNAL SERVICE FUNDS SUMMARY Current Proposed Fund FY 23/24 FY 24/25 Variance Equipment Replacement 2,331,044 1,358,750 (972,294) Information Technology 3,277,620 3,217,945 (59,675) Park Equipment 3,092,200 2,000,000 (1,092,200) Insurance Fund 1,118,000 1,058,000 (60,000) 9,818,864 7,634,695 (2,184,169) Equipment Replacement Fund — The decrease in this fund is due to a reduction in vehicle lease costs due to the City's vehicle purchase program and major equipment purchases in FY 2023/24 that are not anticipated in the upcoming year. Information Technology Fund — An slight decrease in software implementation is to account for the Public Works asset management software that was accounted for in FY 2023/24. Park Equipment Fund — The increase of $1,092,200 is mainly attributed to one-time playground enhancements in FY 2023/24 which included shade canopy replacements, benches, drinking fountains, and upgraded playground and fitness equipment. Insurance Fund — An overall decrease of $60,000 is due to the estimated insurance premiums provided by California Joint Powers Authority (CJPIA), final projections will be provided at budget adoption. MEASURE G SALES TAX Measure G sales tax revenue is anticipated to be $15,500,000 and is allocated as presented below in the proposed budget. The Financial Advisory Commission will be reviewing the proposed uses of Measure G revenues at the June 5t" meeting. Measure G Sales Tax Revenue $ 15,500,000 Police Services (7,300,000) Capital Improvements (8,200,000) REDEVELOPMENT LOAN REPAYMENT The City's Last and Final Recognized Obligation Payment Schedule (ROPS) for the Successor Agency (former Redevelopment Agency) includes an annual loan repayment. For 2024/25 the total loan repayment is $3,505,817 which is allocated 80% to the General Fund ($2,804,654) and 20% ($701,163) to the Housing Authority Fund. These revenues will be recognized in unassigned reserves in each fund and are not allocated to current expenses. The final loan repayment is scheduled for FY 2029/30. Remaining outstanding loan repayments after 2024/25 total $18,173,918. PUBLIC PARTICIPATION The annual budget outlines the City's financial resources and plan for the City's operations and services for the upcoming year. Community input is a crucial component to the budget process and helps the City develop a budget that reflects the priorities and values of La Quinta residents and businesses. To encourage citizen participation in public meetings, the 2024/25 budget schedule is available on the City's website and is noted below: https://www.laguintaca.gov/our-city/city-departments/finance/budget/proposed-budget-2024- 25-timPlinP PUBLIC MEETING DATES FISCAL YEAR 2024/25 BUDGET 2/22/2024 Annual Community Workshop City Council Meeting 4/2/2024 Proposed Capital Improvement Program CIP Study Session 4/3/2024 Financial Advisory Commission Meeting Proposed Capital Improvement Program CIP Study Session Financial Advisory Commission Meeting 5/8/2024 Preliminary General Fund Revenue & Expense Projections City Council Meeting 5/21/2024 Budget Study Session #1 (General Fund and Internal Service Funds focus City Council Meeting 6/4/2024 Budget Study Session #2 (All Appropriations- General Fund, Internal Service Funds, Enterprise, and Special Revenue Funds) Housing Authority Meeting 6/4/2024 Budget Study Session #1(Housing Funds Only) 6/5/2024 Financial Advisory Commission Meeting Final review of proposed Measure G sales tax uses Housing Commission Meeting 6/12/2024 Final Review of proposed Housing AuthoritV Budget City Council Meeting 6/18/2024 Operating and CIP Budget Adoption Housing Authority Meeting 6/18/2024 Budget Adoption MEASURE G REVENUE AND USES SUMMARY MEASURE G REVENUES AND USES SUMMARY =fiscal Year FY) >_016/17 Actual $ 1462650 t017/18 Actual 9:967:657 W18/19 Actual 10,958,118 Z019/20 Actual 10,310,526 2020/21 Actual 12,594,389 >021/22 Actual 15,615,802 2022/23 Actual 16,088,087 >_023/24 Budget (Current) 15,700,000 M24/25 Budget (Proposed) 15,500,000 TOTAL $108,197,229 Year Earned Project Description Operational Capital Reserves Total by Year 2016/17 Eisenhower Dr. Retention Basin 750,000 Washington St. Connector to Art& Music Line 712,650 - 1,462,650 2017/18 Public Safety Fund 300,000 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 321,900 SilverRock Event Site 244,700 Alongi Building at SilverRock Event Site 160,000 SilverRock Event Site 290,000 SilverRock Event Site Retention Basin 10,000 SilverRock Event Site Retention Basin 427,250 Measure G Reserves 17/18 1,084,350 9,967,657 2018119 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 SilverRock Event Site 1,300,000 Measure G Reserves 18/19 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 Quints Landscape Improvements 3,703,369 Village Art Plaza Promenade 310,000 Measure G Reserves 19/20 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 Bums Park Improvements 350,000 Allocate 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 (7,468,061) Measure G Reserves 2022/23 13,859,148 16,088,087 2023/24 Public Safety Contract Services 5,100,000 Highway 111 Corridor Improvements 1,000,000 Avenue 48 Art and Music Line 2,400,000 Fritz Bums Park Improvements 1,500,000 Highway 111 Event Site 500,000 Washington St. Connector to Art& Music Line 1,200,000 Measure G Reserves 2023/24 4,000,000 15,700,000 2024/25 Public Safety Contract Services 7,300,000 Maintenance & Operations Yard 400,000 Cultural Campus 1,000,000 Highway 111 Corridor Area Plan Implementation 3,050,000 Fritz Bums Park Improvements 2,500,000 Citywide Dog Park Improvements 500,000 Welcome Center Improvements 750,000 Measure G Reserves 2024/25 - 15,500,000 $ 92,497,229 TOTAL $ 25,908,000 $ 41,775,038 $ 33,214,191 26% 41% 33% EXHIBIT A CITY OF LA QUINTA ., . ... r � }! _ - -.. �/� .. _ _��� ry�1�'ik.c •�9 '.:d;• f }Y'_ �„� � .�ira A.. ��.�" �-wf � � r ._� - _ ,y'•••T - � � -.� ,fir .�vf .�.,� J�,P,.� +.. .�4��-: •`�.. Vw Proposed Budget taQ��, THIS PAGE INTENTIONALLY LEFT BLANK CITY OF LA QUINTA FY 2024/25 PROPOSED BUDGET The annual budget process coordinates the allocation of city revenues for essential services such as police and fire, community programs and events, and capital improvement projects. The City invites you to participate and/or track public meetings regarding the fiscal year 2024/25 budget. Proposed public meeting dates are summarized below and as meetings occur budget information presented will be available online on a dedicated City webpage within the Finance Department at: https://www.laquintaca.gov/our-city/city-departments/finance/budget/proposed-budget-2024- 25-timeline Questions regarding the fiscal year 2024/25 budget may be directed to finance@laquintaca.gov or by calling 760-777-7055. 2/22/2024 Annual Community Workshop 4/2/2024 City Council Meeting Proposed Capital Improvement Program (CIP) Study Session 4/3/2024 Financial wavisory commission ivieeti% Proposed Capital Improvement Program (CIP) Study Session 5/8/2024 Financial Advisory Commission ivieeimb Preliminary General Fund Revenue & Expense Projections City Council Meeting 5/21/2024 Budget Study Session #1 (General Fund and Internal Service Funds focus City Council Meeting 6/4/2024 Budget Study Session #2 (All Appropriations- General Fund, Internal Service Funds, Enterprise, and Special Revenue Funds) 6/4/2024 Housina Authoritv Meetincf Budget Study Session #1(Housing Funds Only) 6/5/2024 Financial Advisory Commission Meetina Final review of proposed Measure G sales tax uses 6/12/2024 Housing Commission Meetinc Final Review of proposed Housing Authority Budget 6/18/2024 City Council Meeting Operating and CIP Budget Adoption 6/18/2024 Housing Authority Meeting Budget Adoption CITY OF LA QUINTA FY 2024/25 PROPOSED BUDGET ESTIMATED CURRENT RESOURCES: REVENUES: TAXES $ 63,270,000 LICENSES & PERMITS 2,386,500 INTERGOVERNMENTAL 11,253,000 CHARGES FOR SERVICES 1,028,700 FINES & ASSESSMENTS 341,000 OTHER/MISCELLANEOUS 2,435,100 TOTAL• ESTIMATED CURRENT REQUIREMENTS: EXPENDITURES: CITY COUNCIL $ 346,400 CITY MANAGER DEPARTMENT 4,319,600 CITY MANAGER'S DIVISION 1,641,100 HUMAN RESOURCES 745,900 MARKETING/COMMUNITY RELATIONS 1,932,600 CITY ATTORNEY 800,000 CITY CLERK DEPARTMENT 1,406,570 COMMUNITY SERVICES 3,356,000 CS ADMINISTRATION 716,400 WELLNESS CENTER OPERATIONS 683,600 RECREATION PROGRAMS/SPECIAL EVENTS 1,956,000 PUBLIC SAFETY 32,281,640 POLICE 19,643,300 FIRE 10,547,110 CODE COMPLIANCE/ANIMAL CONTROL 1,821,340 PUBLIC SAFETYADMINISTRATION 269,890 PUBLIC WORKS 10,171,180 PARKS MAINTENANCE 4,649,300 PUBLIC BUILDINGS 1,875,750 PUBLIC WORKS ADMINISTRATION 835,797 DEVELOPMENT SERVICES 539,383 STREETS- TRAFFIC 1,036,550 ENGINEERING SERVICES 1,234,400 DESIGN & DEVELOPMENT 4,697,175 D&D ADMINISTRATION 826,800 PLANNING 856,900 BUILDING 1,513,600 THE HUB 1,499,875 FISCAL SERVICES 23,874,100 FINANCE 2,103,500 CENTRAL SERVICES (Includes CIP) 21,770,600 TOTAL• PRELIMINARY BUDGET SURPLUS $ (538,365) LESS MEASURE G SALES TAX RESERVES - 61 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Current 23/24 in Budget 310 - Tax Revenues 101-0000-40310 Property Tax Revenue 3,098,566 3,200,000 3,200,000 2,057,955 3,400,000 200,000 6% 101-0000-40311 No -Low City Property Ta> 5,388,267 4,985,000 4,985,000 3,110,841 5,300,000 315,000 6% 101-0000-40315 RPTTF Pass Through 2,736,932 2,860,000 2,860,000 1,651,168 3,050,000 190,000 7% 101-0000-41320 State Sales Tax 12,799,992 12,700,000 12,700,000 6,999,166 12,000,000 (700,000) -6% 101-0000-41326 Measure G Sales Tax 16,088,087 15,700,000 15,700,000 8,954,840 15,500,000 (200,000) -1% 101-0000-41327 Document Transfer Tax 926,743 650,000 650,000 536,885 720,000 70,000 11% 101-0000-41400 TOT - Hotels 9,772,760 8,700,000 8,700,000 6,451,893 9,370,000 670,000 8% 101-0000-41401 TOT - Short Term Vac. Ri 6,415,354 5,800,000 5,800,000 3,525,574 5,500,000 (300,000) -5% 101-0000-41402 TOT - Bed and Breakfast 103,272 90,000 90,000 60,884 100,000 10,000 11% 101-0000-41416 TOT - Resort Fees 396,342 375,000 375,000 274,671 370,000 (5,000) -1% 101-0000-41505 Franchise Taxes - Burrtec 1,188,773 1,050,000 1,050,000 813,314 1,130,000 80,000 8% 101-0000-41508 Southern California Gas F 246,641 200,000 200,000 0 190,000 (10,000) -5% 101-0000-41509 Cable Television Franchis 677,929 675,000 675,000 312,523 620,000 (55,000) -8% 101-0000-41510 Communications Franchi< 195,772 200,000 200,000 85,216 170,000 (30,000) -15% 101-0000-41800 Property Tax in Lieu of VI 5,110,569 5,445,000 5,445,000 2,815,553 5,850,000 405,000 7% 310 - Tax Revenues Totals: 65,145,998 62,630,000 62,630,000 37,650,481 63,270,000 640,000 10/0 320 - Licenses & Permits 101-0000-41411 STVR Inspection Fee 2,275 2,000 2,000 1,300 2,000 0 0% 101-0000-41415 STVR Registration Fee 962,500 940,000 940,000 781,000 900,000 (40,000) -4% 101-0000-41600 Business Licenses 431,498 350,000 350,000 271,599 355,000 5,000 1% 101-0000-41602 STVR Business Licenses 51,582 60,000 60,000 44,170 60,000 0 0% 101-0000-41610 Film Permits 1,091 1,500 1,500 1,175 1,500 0 0% 101-0000-42400 Building Permits 1,009,315 315,000 315,000 374,391 335,000 20,000 6% 101-0000-42401 Plumbing Permits 175,858 72,000 72,000 42,452 50,000 (22,000) -31% 101-0000-42402 Mechanical Permits 175,576 81,000 81,000 55,897 65,000 (16,000) -20% 101-0000-42403 Electrical Permits 154,126 61,000 61,000 46,336 50,000 (11,000) -18% 101-0000-42404 Miscellaneous Permits 340,078 170,000 170,000 167,169 160,000 (10,000) -6% 101-0000-42405 Garage Sale Permits 4,540 5,000 5,000 4,410 5,000 0 0% 101-0000-42408 Grading Permits 58,539 20,000 20,000 6,440 10,000 (10,000) -50% 101-0000-42420 Fire Plan Review Fee 69,618 65,000 65,000 97,341 85,000 20,000 31% 101-0000-42421 Fire Inspection Fee 142,218 100,000 100,000 49,301 100,000 0 0% 101-0000-42430 Transportation Permits 578 2,000 2,000 976 1,000 (1,000) -50% 101-0000-42431 Conditional Use Permits 63,591 21,000 21,000 12,769 10,000 (11,000) -52% 101-0000-42433 Minor Use Permit 2,668 3,000 3,000 0 1,000 (2,000) -67% 101-0000-42434 Sign Permit 26,076 17,000 17,000 11,792 12,000 (5,000) -29% 101-0000-42435 Site Development Permit 76,941 55,000 55,000 51,158 55,000 0 0% 101-0000-42436 Final Landscaping Plans 17,296 10,000 10,000 11,270 10,000 0 0% 101-0000-42437 Development Agreement 3,446 6,800 6,800 8,225 6,000 (800) -12% 101-0000-42439 Temporary Use Permit 1,656 3,000 3,000 6,580 3,000 0 0% 101-0000-43632 Public Works Permits 212,483 150,000 150,000 78,539 100,000 (50,000) -33% 101-0000-43638 NPDES Inspections 11,365 11,000 11,000 6,711 10,000 (1,000) -9% 2,386,500 (134,800) -5% 320 - Licenses & Permits Totals: 3,994,913 2,521,300 2,521,300 2,131,001 330 - Intergovernmental 101-0000-41710 State Gov't Revenue 203,682 0 0 0 0 0 0% 101-0000-42500 Fire Service Credit 9,473,316 9,000,000 9,000,000 6,288,398 11,000,000 2,000,000 22% 3 CITY OF LA QUINTA 101-0000-43100 FEMA 101-0000-43633 CSA 152 Assessments 101-0000-43650 Contributions from Other 330 - Intergovernmental Totals: 340 - Charges for Services 2022/23 GENERAL FUND REVENUE DETAILS FY 2024/25 PROPOSED BUDGET 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change i inal Budget Current Budget YTD Activity* Proposed Current 23 24 in Bud et 33,247 0 0 0 0 0 0% 275,816 175,000 175,000 520,573 250,000 75,000 43% 3,000 3,000 3,000 0 3,000 0 0% 9,989,060 9,178,000 9,178,000 6,808,970 11,253,000 2,075,000 23% 101-0000-42200 Leisure Enrichment 13,313 11,000 11,000 6,490 11,000 0 0% 101-0000-42210 Youth Sports 45,710 40,000 40,000 32,310 40,000 0 0% 101-0000-42211 Adult Sports 8,207 5,000 5,000 1,220 5,000 0 0% 101-0000-42212 Facility Rentals 7,959 10,000 10,000 12,766 10,000 0 0% 101-0000-42213 Special Events 0 5,000 5,000 350 5,000 0 0% 101-0000-42214 Wellness Center Leisure 1 16,556 10,000 10,000 20,404 15,000 5,000 50% 101-0000-42216 Wellness Center Special 1 0 1,000 1,000 648 1,000 0 0% 101-0000-42218 Wellness Center Member: 88,602 50,000 50,000 83,170 80,000 30,000 60% 101-0000-42300 Cash Over/Short 0 0 0 1,009 0 0 0% 101-0000-42303 NSF Charges 75 100 100 135 100 0 0% 101-0000-42412 Minor Adjustment, Plan C 33,360 20,000 20,000 10,813 10,000 (10,000) -50% 101-0000-42415 Tentative Tract Map 33,124 20,000 20,000 23,788 20,000 0 0% 101-0000-42416 Digitization/Records Man, 54,190 30,000 30,000 32,546 20,000 (10,000) -33% 101-0000-42417 Modification by Applicant 1,975 2,500 2,500 2,275 2,500 0 0% 101-0000-42440 Appeals - Permits, Licens 750 1,500 1,500 250 1,000 (500) -33% 101-0000-42441 Planning Compliance Rev 838 500 500 922 500 0 0% 101-0000-42443 Zone Change 1,702 10,500 10,500 13,552 11,000 500 5% 101-0000-42445 Environmental Assessme 12,254 7,000 7,000 3,158 5,000 (2,000) -29% 101-0000-42446 General Plan Amendment 11,379 11,000 11,000 11,899 12,000 1,000 9% 101-0000-42447 Home Occupations 6,658 7,000 7,000 6,617 7,000 0 0% 101-0000-42448 Tentative Parcel Map 14,238 10,000 10,000 11,221 11,000 1,000 10% 101-0000-42451 Specific Plan 5,194 12,000 12,000 12,736 12,000 0 0% 101-0000-42456 Lot Exemption Fee 0 0 0 3,000 0 0 0% 101-0000-42460 Pre -Application Review 6,069 8,000 8,000 7,577 8,000 0 0% 101-0000-42600 Building Plan Check Fees 933,046 500,000 500,000 470,344 550,000 50,000 10% 101-0000-42610 SMIP Fees 1,409 500 500 177 500 0 0% 101-0000-42615 CBSC Administrative Fee: 1,409 600 600 0 600 0 0% 101-0000-42810 Public Works Dev. Plan C 223,062 160,000 160,000 311,884 160,000 0 0% 101-0000-43631 CVMSHCP Admin Fee 5,911 2,500 2,500 697 2,500 0 0% 101-0000-43635 VGPS TBID Admin Fee 31,868 27,500 27,500 8,954 28,000 500 2% 340 - Charges for Services Totals: 1,558,859 963,200 963,200 1,090,911 1,028,700 65,500 7% 350 - Fines, Forfeitures & Abatements 101-0000-42700 Administrative Citations 339,246 240,000 240,000 119,338 120,000 (120,000) -50% 101-0000-42701 Lot Abatement 931 5,000 5,000 6,789 5,500 500 10% 101-0000-42702 Vehicle Abatement 42,773 35,000 35,000 30,315 35,000 0 0% 101-0000-42703 Vehicle Impound Fee 55,457 65,000 65,000 40,350 65,000 0 0% 101-0000-42705 Motor Vehicle Code Fines 69,488 60,000 60,000 27,995 60,000 0 0% 101-0000-42706 Parking Violations 22,702 35,000 35,000 7,759 15,000 (20,000) -57% 101-0000-42707 Misc Fines 1,221 1,500 1,500 284 1,500 0 0% 101-0000-42708 Graffiti Removal 8,071 9,000 9,000 0 9,000 0 0% 4 CITY OF LA QUINTA 101-0000-42709 False Alarm Fees - Police 101-0000-42710 False Alarm Fees - Fire - Fines, Forfeitures & Abatements Totals; 360 - Use of Money & Property GENERAL FUND REVENUE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. 0/b Change Actuals Original Budget Current Budget YTD Activity* Proposed Current 23 24 in Bud et 19,222 10,000 10,000 30,726 25,000 15,000 150% 4,383 5,000 5,000 (93) 5,000 0 0% 563,495 465,500 465,500 263,463 341,000 (124,500) -27% 101-0000-41900 Allocated Interest 2,865,841 1,700,000 1,700,000 (126,588) 1,500,000 (200,000) -12% 101-0000-41910 GASB 31 Interest (893,437) 0 0 0 0 0 0% 101-0000-41930 Interest Revenue 45,221 0 0 0 40,000 40,000 0% 101-0000-42120 Lease Revenue 143,553 160,000 160,000 108,769 150,000 (10,000) -6% 360 - Use of Money & Property Totals: 2,161,178 1,860,000 1,860,000 (17,819) 1,690,000 (170,000) -90/0 370 - Miscellaneous 101-0000-41410 Zoning Change Mitigatior 101-0000-41504 AMR Compliance 101-0000-41507 Burrtec Admin Cost Reim 101-0000-41920 Memorial Tree Revenue 101-0000-42000 Insurance Recoveries 101-0000-42140 Sales of Publications & M 101-0000-42301 Miscellaneous Revenue 101-0000-42305 Miscellaneous Reimburse 101-0000-43505 Credit Card Fee Revenue 101-0000-45000 Sale of Other Assets 101-0000-48500 Extraordinary Gain 370 - Miscellaneous Totals: 1,612,340 550,000 550,000 798,037 0 20,000 20,000 104,381 66,614 110,000 110,000 135,146 1,000 0 0 500 46,299 5,000 5,000 912 640 100 100 0 113,339 60,000 60,000 37,440 168,735 75,000 75,000 189,237 59,589 40,000 40,000 53,083 29,994 0 0 2,227 381,192 0 0 0 450,000 (100,000) -18% 50,000 30,000 150% 125,000 15,000 14% 0 0 0% 5,000 0 0% 100 0 0% 25,000 (35,000) -58% 50,000 (25,000) -33% 40,000 0 0% 0 0 0% 0 0 0% 2,479,742 860,100 860,100 1,320,964 745,100 (115,000) -13% 380 - Transfers In 101-0000-49500 Transfers In 5,000,000 0 0 0 I 0 0 0% 380 - Transfers In Totals: 5,000,000 0 0 0 0 0 00/0 90,893,246 78,478,100 78,478,100 49,247,972 1 80,714,300 2,236,200 3% 5 CITY OF LA QUINTA GENERAL FUND REVENUE NOTES FY 2024/25 PROPOSED BUDGET Fund: 101 - GENERAL FUND 101-0000-40310 = Property Tax Revenue 3,400,000.00 Property tax estimates are provided by HdL consulting services. Actual valuation changes due to the annual 2% Proposition 13 increase, as well as transfers of ownership are included, but completed new construction is not (unless the property was completed and sold in 2023). The City participates in the Teeter Droaram, therefore no delinauencies are assumed. 101-0000-41320 State Sales Tax 12,000,000.00 Bradley Burns (local share of state sales tax) is 1% of the current sales tax rate (8.75%). HdL consulting services budget estimates are factored into projections along with reviews of industry and economic reports and local trends. 101-0000-41326 Measure G Sales Tax 15,500,000.00 Transaction and use sales tax is 1% of the current sales tax rate (8.75%) and is also known as Measure G. Online transactions, as well as big -ticket consumer goods delivered to local addresses drive this number. 101-0000-41400 TOT - Hotels 9,370,000.00 Transient occupancy tax for hotels is 11%. Leisure and hospitality make up 25% of the employment sector in the Coachella Valley and is anticipated to remain strong in the upcoming year due to increased events valleywide. 101-0000-41401 TOT - Short Term Vac. Rentals 5,500,000.00 Transient occupancy tax for short-term vacation rentals (STVR) is 10%. Consumer demand for STVRs continues to be strong. 101-0000-41402 TOT - Bed and Breakfast 100,000.00 CITY OF LA QUINTA GENERAL FUND REVENUE NOTES FY 2024/25 PROPOSED BUDGET 101-0000-41410 101-0000-41415 101-0000-41416 101-0000-41505 101-0000-41507 Transient occupancy tax for bed and breakfast is 10%. Zoning Change Mitigation Fees 450,000.00 Fees are charged based on development agreements, whereby former commercial property was converted to housing developments and mitigation fees cover lost revenue from the change in development type. STVR Registration Fee 900,000.00 Short-term vacation rental registration fees are updated annually with the City's Master Fee Schedule update. TOT - Resort Fees 370,000.00 TOT levied on resort fees which are charged by some hotels. The City provides an annual incentive rebate program for hotels collecting TOT on resort fees. Rebate programs are budgeted in Centralized Services. Franchise Taxes - Burrtec 1,130,000.00 Burrtec Franchise Fee is based on an agreement with the City and is adjusted annually on January 1st per a consumer price index. Burrtec Admin Cost Reimburse 125,000.00 Base amount of $108,000 adjusted annually on January 1 by the change in the Consumer Price Index (CPI) and ending on 6/30/2037. 101-0000-41800 Property Tax in Lieu of VLF 5,850,000.00 Property tax in lieu of vehicle license fee (VLF) is derived from the 2004 property tax swap whereby cities receive property tax allocation in lieu of VLF's. The VLF allocation can change annually based on the percent increase in property valuations. CITY OF LA QUINTA GENERAL FUND REVENUE NOTES FY 2024/25 PROPOSED BUDGET 101-0000-41900 Allocated Interest 1,500,000.00 Interest rates are anticipated to level off into FY 2023/24 as the Federal Reserve has raised rates in an attempt to curb inflation in the current year. Maturing securities will be reinvested at potentially higher rates and the Local Agency Investment Fund (LAIF) vield will rise as well. 101-0000-42200 Leisure Enrichment 11,000.00 Various leisure enrichment activity revenues were budgeted with no increase, based on FY 23/24 actual amounts. The City continues working on building addtional programming. 101-0000-42218 Wellness Center Memberships 80,000.00 The Wellness Center continues to work on increasing memberships and has expanded services to seven-day operations. Membership fees are limited to new members. 101-0000-42420 Fire Plan Review Fee 85,000.00 Fire Plan Reviews are conducted in-house by Riverside County Fire Inspectors. 101-0000-42421 Fire Inspection Fee 100,000.00 Fire Inspections are conducted in-house by Riverside County Fire Inspectors. 101-0000-42440 Appeals - Permits, Licenses, Pr 1,000.00 Appeals for permits, licenses, and violations are captured in this revenue line item. 101-0000-42500 Fire Service Credit 11,000,000.00 Property tax revenue restricted for fire services. 101-0000-42709 False Alarm Fees - Police 25,000.00 8 CITY OF LA QUINTA GENERAL FUND REVENUE NOTES FY 2024/25 PROPOSED BUDGET 101-0000-43633 False alarm fees are expected to increase due to City's enforcement efforts in collection of fees for Sheriff's responses to false alarms. CSA 152 Assessments 250,000.00 Annual revenue generated through property tax collection and held by the County until reimbursements for qualified expenditures are submitted by the City. 101-0000-43650 Contributions from Other Agen 3,000.00 The approved Last and Final Recognized Obligation Payment Schedule (ROPS) includes an annual administrative fee reimbursement for the City to perform the wind down activities associated with the former Redevelopment Agency. CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 1001 - City Council 50 - Salaries and Benefits 101-1001-50108 Salaries - Council Membe 144,494 144,000 144,000 116,308 144,000 0 0% 101-1001-50150 Other Compensation 2,427 2,400 2,400 1,900 2,400 0 0% 101-1001-50200 PERS-City Portion 9,467 10,800 10,800 8,645 10,900 100 1% 101-1001-50221 Medical Insurance 69,990 95,700 95,700 63,468 109,100 13,400 11% 101-1001-50222 Vision Insurance 589 0 0 499 0 0 0% 101-1001-50223 Dental Insurance 2,416 0 0 1,720 0 0 0% 101-1001-50224 Life Insurance 327 0 0 261 0 0 0% 101-1001-50230 Workers Comp Insurance 10,500 23,900 23,900 17,925 23,900 0 0% 101-1001-50240 Social Security -Medicare 2,095 5,600 5,600 1,686 5,600 0 0% 101-1001-50241 Social Security -FICA 3,432 0 0 2,764 0 0 0% 50 - Salaries and Benefits Totals: 245,737 282,400 282,400 215,176 295,900 13,500 50/0 62 - Maintenance & Operations 101-1001-60137 Community Special Eveni 42,406 20,000 20,000 14,346 20,000 0 0% 101-1001-60320 Travel & Training 24,206 15,000 15,000 24,581 30,000 15,000 100% 101-1001-60420 Operating Supplies 322 500 500 272 500 0 0% 62 - Maintenance & Operations Totals: 66,934 35,500 35,500 39,199 50,500 15,000 27% 1001 - City Council Totals: 312,671 317,900 317,900 254,375 346,400 28,500 80/b ill CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 1001 - City Council 101-1001-60137 Community Special Events Annual City open house State of the City 101-1001-60320 Travel & Training 20,000.00 30,000.00 League of CA Cities- Annual conference, legislative action days, and other trainings. Council meeting expenses if CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 1002 - City Manager 50 - Salaries and Benefits 101-1002-50101 Permanent Full Time 557,291 607,800 607,800 426,930 618,300 10,500 2% 101-1002-50105 Salaries - Overtime 0 0 0 14 0 0 0% 101-1002-50150 Other Compensation 1,047 900 900 684 900 0 0% 101-1002-50200 PERS-City Portion 40,309 57,700 57,700 33,793 57,700 0 0% 101-1002-50215 Other Fringe Benefits 20,580 36,760 36,760 27,255 29,200 (7,560) -61% 101-1002-50221 Medical Insurance 81,955 114,800 114,800 60,989 125,500 10,700 13% 101-1002-50222 Vision Insurance 759 0 0 515 0 0 0% 101-1002-50223 Dental Insurance 4,743 0 0 3,182 0 0 0% 101-1002-50224 Life Insurance 281 0 0 197 0 0 0% 101-1002-50225 Long Term Disability 3,070 3,900 3,900 2,334 3,900 0 0% 101-1002-50230 Workers Comp Insurance 7,100 23,900 23,900 17,925 23,900 0 0% 101-1002-50240 Social Security -Medicare 8,197 8,900 8,900 6,594 9,000 100 2% 101-1002-50241 Social Security -FICA 0 0 0 1,724 0 0 0% 101-1002-50251 Temporary 0 0 0 27,807 35,000 35,000 0% 50 - Salaries and Benefits Totals: 725,331 854,660 854,660 609,943 903,400 48,740 7% 60 - Contract Services 101-1002-60101 Contract Services - Admi 69,671 125,000 125,000 83,000 125,000 0 0% 101-1002-60103 Professional Services 38,406 45,000 45,000 757 45,000 0 0% 60 - Contract Services Totals: 108,078 170,000 170,000 83,757 170,000 0 00/0 62 - Maintenance & Operations 101-1002-60320 Travel & Training 5,993 6,000 6,000 3,355 10,000 4,000 67% 101-1002-60351 Membership Dues 102,314 105,000 105,000 105,594 105,000 0 0% 101-1002-60352 Subscriptions & Publicati< 850 2,000 2,000 850 2,000 0 0% 101-1002-60400 Office Supplies 1,718 1,500 1,500 1,696 1,500 0 0% 101-1002-60420 Operating Supplies 1,606 0 0 0 0 0 0% 62 - Maintenance & Operations Totals: 112,481 114,500 114,500 111,495 118,500 4,000 3% 64 - Other Expenses 101-1002-60510 Contingency for Operatio 58,927 300,000 300,000 11,890 I 300,000 0 0% 64 - Other Expenses Totals: 58,927 300,000 300,000 11,890 300,000 0 00/0 69 - Internal Service Charges 101-1002-98110 Information Tech Charge 78,200 149,200 149,200 111,900 I 149,200 0 0% 69 - Internal Service Charges Totals: 78,200 149,200 149,200 111,900 149,200 0 00/0 1002 - City Manager Totals: 1,083,016 1,588,360 1,588,360 928,985 1,641,100 52,740 4% 12 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 1002 - City Manager 101-1002-50101 Permanent Full Time 618,300.00 80% - City Manager (20% Housing Fund) 60% - Director- Business Unit/Housing Development (40% Housing Fund) 100% - Executive Specialist 100% - Marketing & Communications Specialist 100% - Management Specialist 20% - Administrative Technician (80% Housing Fund) 101-1002-60101 Contract Services - Administra 125,000.00 Legislative lobbying services Economic development services 101-1002-60103 Professional Services 45,000.00 Title and appraisal services and property surveys Waste management for special events 101-1002-60320 Travel & Training 10,000.00 League of California Cities (LCC) Regional meetings & miscellaneous training such as: Coachella Valley Association of Governments (CVAG), California Cities/Counties Mgmt Foundation (CCMF), and Southern CA Association of Governments (SCAG1 101-1002-60351 Membership Dues 105,000.00 International City/County Mgmt Association (ICMA) League of CA Cities (LCC) - Riverside California Cities/Counties Mgmt Foundation (CCMF) Coachella Valley Association of Governments (CVAG) National League of Cities (NLC) Southern CA Association of Governments (SCAG1 13 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET 101-1002-60352 101-1002-60510 Subscriptions & Publications Property analysis and grant solutions Contingency for Operations 2,000.00 300,000.00 14 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 1004 - Human Resources 50 - Salaries and Benefits 101-1004-50101 Permanent Full Time 166,423 257,000 257,000 146,768 265,100 8,100 5% 101-1004-50102 Salaries - Part Time 109 0 0 0 0 0 0% 101-1004-50150 Other Compensation 1 0 0 0 0 0 0% 101-1004-50200 PERS-City Portion 12,163 19,700 19,700 10,756 20,900 1,200 10% 101-1004-50215 Other Fringe Benefits 2,600 3,900 3,900 2,100 3,900 0 0% 101-1004-50221 Medical Insurance 29,851 71,800 71,800 24,471 82,000 10,200 21% 101-1004-50222 Vision Insurance 461 0 0 364 0 0 0% 101-1004-50223 Dental Insurance 2,891 0 0 2,244 0 0 0% 101-1004-50224 Life Insurance 129 0 0 104 0 0 0% 101-1004-50225 Long Term Disability 1,019 1,700 1,700 882 1,700 0 0% 101-1004-50230 Workers Comp Insurance 4,200 14,300 14,300 10,725 14,300 0 0% 101-1004-50240 Social Security -Medicare 2,460 3,800 3,800 2,410 3,900 100 4% 101-1004-50241 Social Security -FICA 130 0 0 1,058 0 0 0% 101-1004-50251 Temporary 111 25,000 25,000 17,059 50,000 25,000 0% 101-1004-50252 Annual Wellness Dollar R 10,835 18,000 18,000 5,569 18,000 0 0% 50 - Salaries and Benefits Totals: 233,383 415,200 415,200 224,511 459,800 44,600 17% 60 - Contract Services 101-1004-60103 Professional Services 101-1004-60104 Consultants/Employee SE 101-1004-60125 Temporary Agency Servii 60 - Contract Services Totals: 62 - Maintenance & Operations 101-1004-60129 Recruiting/Pre-EmploymE 101-1004-60320 Travel & Training 101-1004-60322 Training & Education/MOi 101-1004-60340 Employee Recognition Ev 101-1004-60351 Membership Dues 101-1004-60352 Subscriptions & Publicati< 101-1004-60400 Office Supplies 101-1004-60420 Operating Supplies 62 - Maintenance & Operations Totals: 93,797 5,000 34,500 18,517 25,000 45,000 0 0 0 409 39,626 34,500 0 0% 45,000 0 0% 0 0 0% 112,314 30,000 79,500 41,401 79,500 0 00/0 9,608 15,000 15,000 3,264 15,000 0 0% (144) 10,000 10,000 8,066 10,000 0 0% 5,763 52,000 52,000 2,357 52,000 0 0% 23,981 30,000 30,000 16,150 30,000 0 0% 6,375 10,000 10,000 6,375 10,000 0 0% 779 1,500 1,500 702 1,500 0 0% 463 500 500 152 500 0 0% 508 1,000 1,000 313 1,000 0 0% 47,333 120,000 120,000 37,379 120,000 0 00/0 69 - Internal Service Charges 101-1004-98110 Information Tech Charge 46,000 86,600 86,600 64,950 I 86,600 0 0% 69 - Internal Service Charges Totals: 46,000 86,600 86,600 64,950 86,600 0 00/0 1004 - Human Resources Totals: 439,030 651,800 701,300 368,242 745,900 44,600 8% 15 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 1004 - Human Resources 101-1004-50101 Permanent Full Time 100% - Human Resources Manager 100% - Human ResourcesTechnician (2) 265,100.00 101-1004-60103 Professional Services 34,500.00 Citywide employee development programs 101-1004-60104 Consultants/Employee Service 45,000.00 Employee Assistance Program (EAP)- Wellness Works CaIPERS- Monthly medical premium and administration fees TAG/AMS DOT random screenings DMV medical exams (Class B) Bilingual testing 101-1004-60129 Recruiting/Pre-Employment 15,000.00 Interview panel costs Fingerprinting Physicals and drug screenings Background checks 101-1004-60320 Travel & Training 10,000.00 Liebert Cassidy Whitmore (LCW)- law & labor relations Educational forums and miscellaneous training 101-1004-60351 Membership Dues 10,000.00 ill CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Society of HR Management (SHRM) Professionals in HR Association (PIHRA) International Public Management Association for HR (IPMA-HR), World at Work (WOW) CV Employment Relations Consortium (LCW) CA Public Emolovers Labor Relations Assoc. (CaIPELRAI 101-1004-60352 Subscriptions & Publications 1,500.00 Labor law compliance posters 17 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 3007 - Marketing & Community Relations 50 - Salaries and Benefits 101-3007-50101 Permanent Full Time 120,557 144,100 144,100 153,090 216,600 72,500 37% 101-3007-50200 PERS-City Portion 8,757 11,100 11,100 11,325 17,100 6,000 42% 101-3007-50215 Other Fringe Benefits 1,300 1,560 1,560 1,050 2,600 1,040 83% 101-3007-50221 Medical Insurance 21,407 28,700 28,700 36,160 54,600 25,900 52% 101-3007-50222 Vision Insurance 181 0 0 311 0 0 0% 101-3007-50223 Dental Insurance 1,594 0 0 2,230 0 0 0% 101-3007-50224 Life Insurance 66 0 0 94 0 0 0% 101-3007-50225 Long Term Disability 736 1,000 1,000 927 1,400 400 31% 101-3007-50230 Workers Comp Insurance 4,200 5,800 5,800 4,350 5,800 0 0% 101-3007-50240 Social Security -Medicare 1,748 2,100 2,100 2,220 3,200 1,100 39% 50 - Salaries and Benefits Totals: 160,546 194,360 194,360 211,756 301,300 106,940 40% 60 - Contract Services 101-3007-60134 Promotional Items 101-3007-60137 Community Engagement 101-3007-60151 VGPS - Visit Greater Paln 60 - Contract Services Totals: 62 - Maintenance & Operations 101-3007-60320 Travel & Training 101-3007-60351 Membership Dues 101-3007-60410 Printing 101-3007-60420 Operating Supplies 101-3007-60450 Sponsorships/Advertising 101-3007-60461 Marketing & Tourism Proi 62 - Maintenance & Operations Totals: 67,941 90,000 6,368 7,000 06,711 390,000 90,000 7,000 390,000 24,969 14,903 18.271 90,000 0 0% 10,000 3,000 28% 395,000 5,000 1% 481,020 487,000 487,000 458,143 495,000 8,000 2% 2,836 12,000 12,000 15,428 15,000 3,000 38% 8,846 10,000 10,000 12,579 10,000 0 0% 18,979 30,000 30,000 8,367 30,000 0 0% 1,647 1,600 1,600 1,358 1,600 0 0% 36,095 75,000 75,000 52,006 75,000 0 0% 92,094 970,000 970,000 675,401 970,000 0 0% 960,497 1,098,600 1,098,600 765,139 1,101,600 3,000 00/0 69 - Internal Service Charges 101-3007-98110 Information Tech Charge 46,000 34,700 34,700 26,025 I 34,700 0 0% 69 - Internal Service Charges Totals: 46,000 34,700 34,700 26,025 34,700 0 00/0 Marketing & Community Relations Totals: 1,648,064 1,814,660 1,814,660 1,461,063 1,932,600 117,940 6% 18 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 3007 - Marketing & Community Relations 101-3007-50101 Permanent Full Time 100% - Marketing Manager 100% - Marketing & Communications Specialist 101-3007-60134 Promotional Items For community engagement and special events 101-3007-60137 Community Engagement Community workshop and City events 101-3007-60151 VGPS - Visit Greater Palm Spri 216,600.00 90,000.00 10,000.00 395,000.00 Payment of transient occupancy tax (TOT) to Visit Greater Palm Springs (VGPS) for a percentage all TOT revenue collected to jointly encourage, promote, and attract visitors to the Coachella Valley. .0015 of gross rental revenue for non -convention TOT .0035 of aross rental revenue for convention TOT 101-3007-60320 Travel & Training 15,000.00 Visit CA - travel destination conference CalTravel - travel destination conference 101-3007-60351 Membership Dues 10,000.00 19 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Coachella Valley Economic Partnership (CVEP), CA Association of Public Information Officers (CAPIO), Cal Travel, Public Relations Society of America (PRSA), Mail Chimp, and Ragan Communications 101-3007-60410 Printing 30,000.00 Citywide business cards, event signs, and banners 101-3007-60450 Sponsorships/Advertising 75,000.00 Various sponsorships including CVEP Summit, Modernism Week, National Date Festival 101-3007-60461 Marketing & Tourism Promotio 970,000.00 Photography, Chamber of Commerce Contract, Video, Commercials, Marketing Contracts, Marketing Efforts, Music Licensing, Palm Springs Life Vision, and State of the City 20 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 1003 - City Attorney 60 - Contract Services 101-1003-60153 Attorney 318,475 650,000 650,000 208,038 650,000 0 0% 101-1003-60154 Attorney/Litigation 39,714 150,000 150,000 60,851 150,000 0 0% 60 - Contract Services Totals: 358,188 800,000 800,000 268,889 800,000 0 0% 1003 - City Attorney Totals: 358,188 800,000 800,000 268,889 800,000 0 0% 21 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 1005 - City Clerk 50 - Salaries and Benefits 101-1005-50101 Permanent Full Time 419,353 483,200 483,200 383,828 524,900 41,700 9% 101-1005-50105 Salaries - Overtime 0 5,000 5,000 0 5,000 0 0% 101-1005-50150 Other Compensation 823 500 500 622 500 0 0% 101-1005-50200 PERS-City Portion 37,884 46,500 46,500 36,291 51,600 5,100 13% 101-1005-50215 Other Fringe Benefits 6,500 7,670 7,670 5,695 7,670 0 0% 101-1005-50221 Medical Insurance 88,428 141,000 141,000 80,389 160,900 19,900 14% 101-1005-50222 Vision Insurance 818 0 0 711 0 0 0% 101-1005-50223 Dental Insurance 3,892 0 0 3,307 0 0 0% 101-1005-50224 Life Insurance 350 0 0 7,792 0 0 0% 101-1005-50225 Long Term Disability 2,542 3,100 3,100 2,309 3,400 300 11% 101-1005-50230 Workers Comp Insurance 12,300 28,100 28,100 21,075 28,100 0 0% 101-1005-50240 Social Security -Medicare 6,287 7,000 7,000 5,873 7,600 600 9% 101-1005-50241 Social Security -FICA 487 0 0 907 0 0 0% 101-1005-50251 Temporary 11,207 15,000 15,000 18,799 15,000 0 0% 50 - Salaries and Benefits Totals: 590,870 737,070 737,070 567,597 804,670 67,600 100/0 60 - Contract Services 101-1005-60103 Professional Services 242,931 200,000 200,000 111,849 365,000 165,000 48% 101-1005-60125 Temporary Agency Servi( 0 25,000 25,000 0 25,000 0 0% 60 - Contract Services Totals: 242,931 225,000 225,000 111,849 390,000 165,000 43% 62 - Maintenance & Operations 101-1005-60320 Travel & Training 101-1005-60351 Membership Dues 101-1005-60400 Office Supplies 101-1005-60410 Printing 101-1005-60420 Operating Supplies 101-1005-60450 Advertising 62 - Maintenance & Operations Totals 8,511 15,000 15,000 5,105 15,000 0 0% 1,350 3,000 3,000 1,546 3,000 0 0% 2,012 2,500 2,500 2,083 3,500 1,000 40% 7,278 10,000 10,000 7,201 10,000 0 0% 943 1,200 1,200 1,091 2,000 800 67% 8,454 5,500 5,500 1,454 8,000 2,500 63% 28,548 37,200 37,200 18,479 41,500 4,300 12% 69 - Internal Service Charges 101-1005-98110 Information Tech Charge 134,608 170,400 170,400 127,800 I 170,400 0 0% 69 - Internal Service Charges Totals: 134,608 170,400 170,400 127,800 170,400 0 00/0 1005 - City Clerk Totals: 996,957 1,169,670 1,169,670 825,725 1,406,570 236,900 19% 22 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 1005 - City Clerk 101-1005-50101 �ermanent Full Time 90% - City Clerk (10% Housing) 100% - Deputy City Clerk 100% - Sr. Permit Technician 100% - Permit Technician 100% - Administrative Technician (2) 524,900.00 101-1005-60103 Professional Services 365,000.00 Municipal Code text and online updates Imaging scanning services For The Record tech support (DSS Corp) DigiCert electronic signatures Ctiywide fee study updates Insurance compliance Records legislation, requirements, minute writing services, and retention updates STVR Programming Compliance, Analytics & Permitting C(lff-\A/Li ra 101-1005-60125 Temporary Agency Services 25,000.00 101-1005-60320 Travel & Training 15,000.00 CA City Clerks Association annual conference & seminars Municipal Clerks certifications and training 101-1005-60351 Membership Dues 3,000.00 California City Clerks Association (CCAC)- 4 employees National Notary Association Errors and Omission insurance (E&O)- 3 employees International Institute of Municipal Clerks (IIMC) membership 101-1005-60410 Printing 101-1005-60450 Advertising 10,000.00 8,000.00 23 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Public hearing notices, Commission and Board vacancies 24 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 3001 - Community Services Administration 50 - Salaries and Benefits 101-3001-50101 Permanent Full Time 345,319 308,000 308,000 250,743 140,000 (168,000) -41% 101-3001-50110 Commissions & Boards 2,550 4,500 4,500 1,200 6,300 1,800 40% 101-3001-50150 Other Compensation 385 400 400 304 0 (400) -100% 101-3001-50200 PERS-City Portion 25,697 27,500 27,500 21,863 27,500 0 0% 101-3001-50215 Other Fringe Benefits 3,640 5,460 5,460 2,940 1,600 (3,860) -110% 101-3001-50221 Medical Insurance 53,654 100,400 100,400 44,953 100,400 0 0% 101-3001-50222 Vision Insurance 562 0 0 445 0 0 0% 101-3001-50223 Dental Insurance 2,523 0 0 1,879 0 0 0% 101-3001-50224 Life Insurance 191 0 0 146 0 0 0% 101-3001-50225 Long Term Disability 1,906 1,600 1,600 1,532 900 (700) -88% 101-3001-50230 Workers Comp Insurance 7,300 20,000 20,000 15,000 20,000 0 0% 101-3001-50240 Social Security -Medicare 5,044 4,500 4,500 3,653 2,100 (2,400) -41% 101-3001-50241 Social Security -FICA 158 0 0 74 0 0 0% 50 - Salaries and Benefits Totals: 448,931 472,360 472,360 344,734 298,800 (173,560) -32% 60 - Contract Services 101-3001-60101 Contract Services 25,000 25,000 25,000 25,000 25,000 0 0% 101-3001-60122 Credit Card Fees 6,803 7,000 7,000 4,866 7,000 0 0% 101-3001-60135 Boys & Girls Club 40,000 60,000 60,000 40,000 60,000 0 0% 60 - Contract Services Totals: 71,803 92,000 92,000 69,866 92,000 0 00/0 62 - Maintenance & Operations 101-3001-60157 Rent Expense 101-3001-60320 Travel & Training 101-3001-60351 Membership Dues 101-3001-60400 Office Supplies 101-3001-60510 Grants & Economic Devel 101-3001-60527 2-1-1 Hotline 101-3001-60531 Homeless Bus Passes 62 - Maintenance & Operations Totals: 0 3,000 3,000 0 3,000 0 0% 141 4,000 4,000 0 4,000 0 0% 0 1,000 1,000 0 1,000 0 0% 1,577 1,500 1,500 1,947 3,300 1,800 120% 135,000 175,000 325,000 246,450 175,000 (150,000) -111% 0 15,000 15,000 0 15,000 0 0% 3,000 3,000 3,000 3,000 3,000 0 0% 139,718 202,500 352,500 251,397 204,300 (148,200) -92% 69 - Internal Service Charges 101-3001-98110 Information Tech Charge 80,500 121,300 121,300 90,975 I 121,300 0 0% 69 - Internal Service Charges Totals: 80,500 121,300 121,300 90,975 121,300 0 00/0 Community Services Administration Totals: 740,952 888,160 1,038,160 756,972 716,400 (321,760) -36% 25 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 3001 - Community Services Administration 101-3001-50101 Permanent Full Time 140,000.00 40% - Community Services Deputy Director (40% Wellness Center, 20% Library & Museum Fund) 80% - Management Analystr (20% Library & Museum Fund) 101-3001-60101 Contract Services 25,000.00 Old Towne Artisan Studio wellness west partnership 101-3001-60157 Rent Expense 3,000.00 DSUSD Facility Use rental 101-3001-60320 Travel & Training 4,000.00 Leadership training 101-3001-60351 Membership Dues 1,000.00 Engaging Local Government Leaders (ELGL) International City/County Management Association (ICMA) Americans for the Arts California Parks & Recreation Society (CPRS) National Recreation & Park Association NRPA 101-3001-60510 Grants & Economic Developme 175,000.00 $100,000 for Community Services Grants are administered per City Policy and selected via a Grant Ad Hoc Commitee.$75,000 for food distribution and other social service programs. 26 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 3002 - Wellness Center Operations 50 - Salaries and Benefits 101-3002-50101 Permanent Full Time 259,735 280,100 280,100 227,055 233,300 (46,800) -19% 101-3002-50102 Salaries - Part Time 152,992 71,250 71,250 119,531 82,500 11,250 8% 101-3002-50105 Salaries - Overtime 0 5,000 5,000 480 5,000 0 0% 101-3002-50150 Other Compensation 963 1,000 1,000 760 1,000 0 0% 101-3002-50200 PERS-City Portion 33,152 30,800 30,800 29,294 27,900 (2,900) -9% 101-3002-50215 Other Fringe Benefits 4,420 4,420 4,420 3,570 3,200 (1,220) -29% 101-3002-50221 Medical Insurance 62,512 81,300 81,300 51,240 65,500 (15,800) -19% 101-3002-50222 Vision Insurance 909 0 0 718 0 0 0% 101-3002-50223 Dental Insurance 5,389 0 0 4,103 0 0 0% 101-3002-50224 Life Insurance 225 0 0 178 0 0 0% 101-3002-50225 Long Term Disability 1,601 1,800 1,800 1,393 1,500 (300) -23% 101-3002-50230 Workers Comp Insurance 7,100 16,200 16,200 12,150 16,200 0 0% 101-3002-50240 Social Security -Medicare 6,298 4,100 4,100 5,068 3,400 (700) -12% 101-3002-50241 Social Security -FICA 5,601 0 0 3,449 0 0 0% 101-3002-50251 Temporary 18,582 0 0 53 0 0 0% 50 - Salaries and Benefits Totals: 559,481 495,970 495,970 459,042 439,500 (56,470) -10% 60 - Contract Services 101-3002-60103 Professional Services 0 5,000 5,000 0 5,000 0 0% 101-3002-60107 Instructors 21,849 20,000 20,000 31,010 30,000 10,000 25% 101-3002-60108 Technical 3,000 5,000 5,000 4,000 1,000 (4,000) -133% 60 - Contract Services Totals: 24,849 30,000 30,000 35,010 36,000 6,000 13% 62 - Maintenance & Operations 101-3002-60157 Rental Expense 101-3002-60320 Travel & Training 101-3002-60351 Membership Dues 101-3002-60352 Subscriptions & Publicati< 101-3002-60400 Office Supplies 101-3002-60420 Operating Supplies 101-3002-60432 Tools/Equipment 62 - Maintenance & Operations Totals: 53 3,000 3,000 0 3,000 0 0% 0 1,000 1,000 31 1,000 0 0% 1,040 5,000 5,000 1,046 5,000 0 0% 0 1,200 1,200 437 2,400 1,200 171% 829 3,000 3,000 232 3,000 0 0% 31,796 50,000 50,000 29,152 50,000 0 0% 0 1,000 1,000 0 1,000 0 0% 33,718 64,200 64,200 30,898 65,400 1,200 2% 68 - Capital Expenses 101-3002-80101 Machinery & Equipment 0 130,000 130,000 120,432 I 25,000 (105,000) 0% 68 - Capital Expenses Totals: 0 130,000 130,000 120,432 25,000 (105,000) 00/0 69 - Internal Service Charges 101-3002-98110 Information Tech Charge 78,200 98,200 98,200 73,650 98,200 0 0% 101-3002-98140 Facility &Fleet Maintenar 21,700 19,500 19,500 14,625 19,500 0 0% 69 - Internal Service Charges Totals: 99,900 117,700 117,700 88,275 117,700 0 00/0 1002 - Wellness Center Operations Totals: 717,948 837,870 837,870 733,658 683,600 (154,270) -20% 27 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 3002 - Wellness Center Operations 101-3002-50101 Permanent Full Time 233,300.00 40% - Community Services Deputy Director (40% Community Services Administration, 20% Library & Museum Fund) 100% - Sr. Community Services Specialist 100% - Community Services Specialist 101-3002-50102 Salaries - Part Time 82,500.00 50% Senior Recreation Leader (2) (50% Recreation Programs & Special Events) 50% Recreation Leader (8) (50% Recreation Programs & Special Events) 101-3002-60103 Professional Services 5,000.00 Retired senior volunteer program, annual volunteer sponsorships to Watercolors of La Quinta, Boys & Girls Club of La Quinta, and the California Highway Patrol 101-3002-60107 Instructors 30,000.00 Instructors for fitness classes and programming 101-3002-60108 Technical 1,000.00 Annual sponsorship for the Riverside County Senior Inspiration Awards 101-3002-60157 Rental Expense 3,000.00 General insurances and security guards for facility rentals 101-3002-60320 Travel & Training 1,000.00 28 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Park and recreational activity program training and certification 101-3002-60351 Membership Dues 5,000.00 Amount Motion Picture Licensinq Corporation (MPLC) 500 National Council on Aqinq (NCOA) 100 TechnoGym apps 4,400 101-3002-60352 Subscriptions & Publications 2,400.00 Amount Desert Sun newspaper 1,600 Wellness publications 800 101-3002-80101 Machinery & Equipment 25,000.00 Purchase of new weighted and stretch fitness equipment, and related accessories for Wellness Center 29 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 3003 - Recreation Programs & Special Eve 50 - Salaries and Benefits 101-3003-50101 Permanent Full Time 47,781 78,800 78,800 105,741 317,400 238,600 413% 101-3003-50102 Salaries - Part Time 34,970 71,250 71,250 23,314 82,500 11,250 11% 101-3003-50105 Salaries - Overtime 0 1,000 1,000 20 5,000 4,000 0% 101-3003-50200 PERS-City Portion 9,054 17,100 17,100 10,863 32,700 15,600 154% 101-3003-50215 Other Fringe Benefits 1,300 1,300 1,300 2,150 6,500 5,200 416% 101-3003-50221 Medical Insurance 30,020 24,000 24,000 26,018 136,300 112,300 342% 101-3003-50222 Vision Insurance 430 0 0 312 0 0 0% 101-3003-50223 Dental Insurance 3,109 0 0 2,100 0 0 0% 101-3003-50224 Life Insurance 58 0 0 116 0 0 0% 101-3003-50225 Long Term Disability 298 1,000 1,000 659 2,000 1,000 250% 101-3003-50230 Workers Comp Insurance 2,100 4,800 4,800 3,600 4,800 0 0% 101-3003-50240 Social Security -Medicare 2,174 8,500 8,500 2,163 11,400 2,900 25% 101-3003-50241 Social Security -FICA 1,787 0 0 350 0 0 0% 101-3003-50251 Temporary 67,243 0 0 19,502 0 0 0% 50 - Salaries and Benefits Totals: 200,323 207,750 207,750 196,908 598,600 390,850 136% 60 - Contract Services 101-3003-60107 Instructors 101-3003-60184 Fritz Burns Pool Programi 101-3003-60190 X Park Programming 60 - Contract Services Totals: 62 - Maintenance & Operations 101-3003-60149 Community Experiences 101-3003-60157 Rental Expense 101-3003-60320 Travel & Training 101-3003-60351 Membership Dues 101-3003-60420 Operating Supplies 101-3003-60512 LQ Art Event 62 - Maintenance & Operations Totals (2,070) 0 0 (17,940) 0 0 0% 191,225 220,000 220,000 121,687 245,000 25,000 13% 285,388 420,000 420,000 404,078 420,000 0 0% 474,543 640,000 640,000 507,825 665,000 25,000 50/0 375,280 580,000 580,000 270,390 580,000 0 0% 81 5,000 5,000 174 5,000 0 0% 0 1,000 1,000 20 1,000 0 0% 0 0 0 0 2,000 2,000 400% 1,182 6,000 6,000 2,874 6,000 0 0% 3,121 90,000 90,000 6,500 50,000 (40,000) -44% 379,664 682,000 682,000 279,957 644,000 (38,000) -60/o 69 - Internal Service Charges 101-3003-98110 Information Tech Charge 23,000 28,900 28,900 21,675 28,900 0 0% 101-3003-98140 Facility & Fleet Maintenar 21,700 19,500 19,500 14,625 19,500 0 0% 69 - Internal Service Charges Totals: 44,700 48,400 48,400 36,300 48,400 0 0% reation Programs & Special Events Totals: 1,099,230 1,578,150 1,578,150 1,020,990 1,956,000 377,850 25% 30 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 3003 - Recreation Programs & Special Events 101-3003-50101 Permanent Full Time 317,400.00 100% - Administrative Technician (5) 101-3003-50102 Salaries - Part Time 82,500.00 50% Senior Recreation Leader (2) (50% Wellness Center Operations) 50% Recreation Leader (8) (50% Wellness Center Operations) 101-3003-60149 Community Experiences 580,000.00 Anticipated events include 9/11 Vigil, Veteran's Day Celebration, Tree Lighting, Ironman, City Picnic, Art on Main, Summer Golf, Mission LQ Rocket Launch, Pillars of the Community, Egg Hunt, Concerts in the Park, and other commu 101-3003-60157 Rental Expense 5,000.00 Special event insurances and security guards for events 101-3003-60184 Fritz Burns Pool Programming 245,000.00 Pool operating contract services 101-3003-60320 Travel & Training 1,000.00 Park and recreation program training and certifications 101-3003-60351 Membership Dues 2,000.00 Americans for Art California Parks and Recreation Society (CPRS) 31 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 2001 - Police 60 - Contract Services 101-2001-60103 Professional Services 101-2001-60109 LQ Police Volunteers 101-2001-60161 Sheriff Patrol 101-2001-60162 Police Overtime 101-2001-60163 Target Team 101-2001-60164 Community Services Offii 101-2001-60165 Special Enforcement/City 101-2001-60166 Gang Task Force 101-2001-60167 Narcotics Task Force 101-2001-60168 School Officer 101-2001-60169 Motor Officer 101-2001-60170 Dedicated Sargeants 101-2001-60171 Dedicated Lieutenant 101-2001-60172 Sheriff - Mileage 101-2001-60173 Booking Fees 101-2001-60174 Blood/Alcohol Testing 101-2001-60175 Special Enforcement Funi 101-2001-60176 Sheriff - Other 101-2001-60193 Sexual Assault Exam Fee 60 - Contract Services Totals: 27,835 50,000 50,000 0 0 (50,000) -100% 7,076 12,000 12,000 6,997 12,000 0 0% 8,997,669 10,230,000 10,230,000 5,658,091 10,600,000 370,000 4% 305,816 400,000 400,000 328,655 400,000 0 0% 1,773,066 1,927,000 1,927,000 1,183,776 2,025,000 98,000 5% 750,961 805,000 805,000 531,505 850,000 45,000 5% 104,099 100,000 100,000 1,807 100,000 0 0% 221,883 231,000 231,000 152,210 245,000 14,000 7% 208,056 231,000 231,000 141,491 245,000 14,000 7% 180,334 240,000 240,000 79,879 280,000 40,000 17% 1,617,054 1,940,000 1,940,000 988,710 2,400,000 460,000 24% 560,823 615,000 615,000 396,528 650,000 35,000 6% 331,448 343,000 343,000 220,859 360,000 17,000 5% 425,455 450,000 450,000 298,195 450,000 0 0% 0 0 0 0 0 0 0% 33,052 36,000 36,000 21,811 38,000 2,000 7% 76,191 95,000 113,500 30,361 113,500 0 0% 449,822 587,000 587,000 47,097 680,000 93,000 17% 6,400 10,000 10,000 6,862 10,500 500 6% 16,077,040 18,302,000 18,320,500 10,094,835 19,459,000 1,138,500 6% 62 - Maintenance & Operations 101-2001-60320 Travel & Training 1,350 5,000 5,000 39 5,000 0 0% 101-2001-60420 Operating Supplies 6,339 10,000 10,000 3,394 10,000 0 0% 62 - Maintenance & Operations Totals: 7,689 15,000 15,000 3,433 15,000 0 00/0 65 - Repair & Maintenance 101-2001-60692 Public Safety Camera Sys 60,540 172,500 172,500 151,513 I 40,000 (132,500) -217% 65 - Repair & Maintenance Totals: 60,540 172,500 172,500 151,513 40,000 (132,500) -217% 66 - Utilities 101-2001-61300 Telephone - Utilities 11,046 17,000 17,000 8,008 17,000 0 0% 101-2001-61400 Cable/Internet -Utilities 6,778 9,000 9,000 5,341 9,000 0 0% 66 - Utilities Totals: 17,823 26,000 26,000 13,348 26,000 0 00/0 68 - Capital Expenses 101-2001-71031 Vehicles 6,519 0 16,000 65,435 I 35,000 19,000 83% 68 - Capital Expenses Totals: 6,519 0 16,000 65,435 35,000 19,000 83% 69 - Internal Service Charges 101-2001-98110 Information Tech Charge 10,000 10,000 10,000 7,500 10,000 0 0% 101-2001-98140 Facility &Fleet Maintenar 64,900 58,300 58,300 43,725 58,300 0 0% 69 - Internal Service Charges Totals: 74,900 68,300 68,300 51,225 68,300 0 00/0 2001 - Police Totals: 16,244,512 18,583,800 18,618,300 10,379,789 19,643,300 1,025,000 6% 32 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 2001 - Police 101-2001-60161 Sheriff Patrol 10,600,000.00 101-2001-60320 Increases for Police services in FY 2024/25 are attributed to rising labor and pension costs. Daily patrol hours (130) and service levels are incorporated. The contract funds the following positions: 1 Lieutenant, 2 Sergeants, 3 Motor Traffic Officers, 2 Traffic Officers, 5 Special Enforcement Team Officers, 2 Deputy Sheriff Officers, and 6 Community Service Of Travel & Training 5,000.00 Crime prevention officers will provide training to the Citizens on Patrol. 101-2001-71031 Vehicles 35,000.00 Motorcycle replacement 33 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 2002 - Fire 50 - Salaries and Benefits 101-2002-50101 Permanent Full Time 142,625 118,200 118,200 69,331 178,300 60,100 30% 101-2002-50105 Salaries - Overtime 437 4,000 4,000 845 4,000 0 0% 101-2002-50150 Other Compensation 96 100 100 246 100 0 0% 101-2002-50200 PERS-City Portion 9,444 9,100 9,100 5,965 14,000 4,900 33% 101-2002-50215 Other Fringe Benefits 1,820 1,820 1,820 1,065 3,510 1,690 97% 101-2002-50221 Medical Insurance 33,426 33,500 33,500 15,335 52,100 18,600 29% 101-2002-50222 Vision Insurance 197 0 0 163 0 0 0% 101-2002-50223 Dental Insurance 1,158 0 0 648 0 0 0% 101-2002-50224 Life Insurance 135 0 0 54 0 0 0% 101-2002-50225 Long Term Disability 785 800 800 431 1,200 400 16% 101-2002-50230 Workers Comp Insurance 5,400 6,700 6,700 5,025 6,700 0 0% 101-2002-50240 Social Security -Medicare 2,220 1,800 1,800 1,160 2,600 800 28% 101-2002-50251 Temporary 74 0 0 9,035 0 0 0% 50 - Salaries and Benefits Totals: 197,817 176,020 176,020 109,304 262,510 86,490 30% 60 - Contract Services 101-2002-60103 Professional Services 0 15,000 15,000 10,769 101-2002-60110 Volunteers - Fire 1,169 4,000 4,000 895 101-2002-60112 Landscape Contract 18,120 24,000 24,000 14,544 101-2002-60116 Pest Control 4,024 10,000 10,000 4,024 101-2002-60123 Security & Alarm 2,205 4,000 4,000 2,219 101-2002-60125 Temporary Agency Servii 30,657 0 0 0 101-2002-60139 Fire Service Costs 6,641,950 8,700,000 8,700,000 3,928,403 101-2002-60140 MOU - Ladder Truck 282,694 300,000 300,000 143,285 101-2002-60525 Golf Tournament 52,980 80,000 80,000 57,838 60 - Contract Services Totals: 7,033,798 9,137,000 9,137,000 4,161,977 15,000 0 0% 4,000 0 0% 35,000 11,000 58% 10,000 0 0% 4,000 0 0% 0 0 0% 9,170,000 470,000 6% 300,000 0 0% 80,000 0 0% 9,618,000 481,000 6% 62 - Maintenance & Operations 101-2002-60320 Travel & Training 479 4,000 4,000 210 4,000 0 0% 101-2002-60351 Membership Dues 1,060 1,200 1,200 1,171 1,200 0 0% 101-2002-60400 Office Supplies 1,006 1,000 1,000 721 1,000 0 0% 101-2002-60406 Disaster Prep Supplies 6,149 8,000 8,000 12,418 48,500 40,500 675% 101-2002-60410 Printing 102 800 800 0 800 0 0% 101-2002-60431 Materials/Supplies 0 20,000 20,000 0 20,000 0 0% 101-2002-60445 Non -Reimbursable Misc 18,648 20,000 20,000 0 20,000 0 0% 101-2002-60545 Small Tools & Equipment 58 2,500 2,500 0 2,500 0 0% 101-2002-60670 Fire Station 5,768 40,000 40,000 16,669 40,000 0 0% 101-2002-60671 Repair & Maintenance - E 143 10,000 10,000 164 30,000 20,000 400% 101-2002-60691 Maintenance/Services 89,287 60,000 60,000 32,697 65,000 5,000 8% 62 - Maintenance & Operations Totals: 122,699 167,500 167,500 64,051 233,000 65,500 44% 64 - Other Expenses 101-2002-60195 Natural Disaster/EOC Act 0 0 0 1,347 I 0 0 0% 64 - Other Expenses Totals: 0 0 0 1,347 0 0 00/0 34 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 66 - Utilities 101-2002-61100 Gas - Utilities 3,287 6,000 6,000 2,625 6,000 0 0% 101-2002-61101 Electricity - Utilities 30,326 43,000 43,000 30,361 48,000 5,000 17% 101-2002-61200 Water - Utilities 11,788 16,000 16,000 8,451 16,000 0 0% 101-2002-61300 Telephone - Utilities 24,542 45,000 45,000 16,191 45,000 0 0% 101-2002-61304 Mobile/Cell Phones/Satell 7,514 10,000 10,000 5,832 10,000 0 0% 101-2002-61400 Cable/Internet - Utilities 6,754 14,000 14,000 5,429 14,000 0 0% 66 - Utilities Totals: 84,211 134,000 134,000 68,889 139,000 5,000 6% 68 - Capital Expenses 101-2002-71021 Furniture 0 5,000 5,000 0 5,000 0 0% 101-2002-71031 Vehicles 35,241 0 0 0 0 0 0% 101-2002-72110 Building Improvements 0 10,000 10,000 0 30,000 20,000 200% 101-2002-80101 Machinery & Equipment 41,773 100,000 458,000 13,908 100,000 (358,000) -90% 68 - Capital Expenses Totals: 77,014 115,000 473,000 13,908 135,000 (338,000) -74% 69 - Internal Service Charges 101-2002-91843 Property & Crime Insurar 5,800 6,000 6,000 4,500 6,000 0 0% 101-2002-91844 Earthquake Insurance 14,000 16,000 16,000 12,000 16,000 0 0% 101-2002-98110 Information Tech Charge 58,700 40,500 40,500 30,375 40,500 0 0% 101-2002-98140 Facility & Fleet Maintenar 108,100 97,100 97,100 72,825 97,100 0 0% 69 - Internal Service Charges Totals: 186,600 159,600 159,600 119,700 159,600 0 00/0 2002 - Fire Totals: 7,702,139 9,889,120 10,247,120 4,539,176 10,547,110 299,990 3% 35 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 2002 - Fire 101-2002-50101 Permanent Full Time 178,300.00 20% - Public Safety Director (80% Public Safety Admin) 100% - Management Analyst 50% - Administrative Technician (50% Public Safety Admin) 20% - Administrative Technician (80% Code Compliance) 101-2002-60103 Professional Services 15,000.00 Public safety announcements and Nixle contract 101-2002-60112 Landscape Contract 35,000.00 Landscaping maintenance services for all three fire stations 101-2002-60139 Fire Service Costs 9,170,000.00 Increases in Fire Services in FY 2024/25 are attributed to rising labor and pension costs, the addition of a dedicated Fire Safety Supervisor (2023), and conversion to dedicated municipal staffing at FS #93 (2023). Services are contracted with Riverside County and include the following: Captains, Medic Engineesr, Engineers, Fire Fighter II/Medic, Fire Fighter II, Fire Safety Specialist, Fire Systems Inspector, Fire Safety Supervisor, Overhead/Administration & Direct Operating Fxnenses_ Merdir Hnit nneratinn Costs and Fire Fnnine Charnel 101-2002-60320 Travel & Training 4,000.00 Emergency preparedness citywide training National Emergency Management Academy 101-2002-60351 Membership Dues 1,200.00 36 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Journal of Emergency Management (JEM) subscription International Association of Emergency Managers (IAEM) 101-2002-60410 Printing 800.00 Update Emergency Operations Center forms 101-2002-60691 Maintenance/Services 65,000.00 Painting plus regular annual maintenance for each station 101-2002-71021 Furniture 5,000.00 Emergency Operations Center tables, chairs, and desks 101-2002-80101 Machinery & Equipment 100,000.00 37 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 6004 - Code Compliance/Animal Control 50 - Salaries and Benefits 101-6004-50101 Permanent Full Time 539,647 526,000 526,000 371,643 537,300 11,300 2% 101-6004-50105 Salaries - Overtime 10,046 15,000 15,000 32,477 15,000 0 0% 101-6004-50106 Standby 100 500 500 0 500 0 0% 101-6004-50150 Other Compensation 0 0 0 0 0 0 0% 101-6004-50200 PERS-City Portion 50,542 51,200 51,200 39,679 51,300 100 0% 101-6004-50215 Other Fringe Benefits 10,140 10,040 10,040 6,820 10,040 0 0% 101-6004-50221 Medical Insurance 140,702 162,600 162,600 113,054 185,400 22,800 12% 101-6004-50222 Vision Insurance 1,351 0 0 1,002 0 0 0% 101-6004-50223 Dental Insurance 5,851 0 0 4,488 0 0 0% 101-6004-50224 Life Insurance 479 0 0 340 0 0 0% 101-6004-50225 Long Term Disability 3,354 3,400 3,400 2,319 3,500 100 3% 101-6004-50230 Workers Comp Insurance 16,300 37,200 37,200 27,900 37,200 0 0% 101-6004-50240 Social Security -Medicare 7,983 8,500 8,500 6,234 7,800 (700) -9% 101-6004-50251 Temporary 0 0 0 24,880 20,000 20,000 0% 50 - Salaries and Benefits Totals: 786,495 814,440 814,440 630,836 868,040 53,600 6% 60 - Contract Services 101-6004-60103 Professional Services 101-6004-60108 Technical 101-6004-60111 Administrative Citation Si 101-6004-60119 Vehicle Abatement 101-6004-60120 Lot Cleaning/Gravel Prog 101-6004-60122 Credit Card Fees 101-6004-60125 Temporary Agency Servi 101-6004-60194 Veterinary Service 101-6004-60197 Animal Shelter Contract `. 60 - Contract Services Totals: 62 - Maintenance & Operations 101-6004-60121 Low -Income Housing Gra 101-6004-60320 Travel & Training 101-6004-60351 Membership Dues 101-6004-60400 Office Supplies 101-6004-60410 Printing 101-6004-60425 Supplies - Field 101-6004-60690 Uniforms 62 - Maintenance & Operations Totals: 69 - Internal Service Charges 101-6004-98110 Information Tech Charge 101-6004-98140 Facility & Fleet Maintenar 69 - Internal Service Charges Totals: 53,525 70,000 70,000 42,296 300 1,000 1,000 277 14,961 18,000 18,000 9,904 0 500 500 0 4,575 20,000 20,000 3,023 1,121 2,000 2,000 585 29 0 0 6,935 70,000 0 0% 1,000 0 0% 25,000 7,000 39% 500 0 0% 20,000 0 0% 2,000 0 0% 0 0 0% 7,000 12,000 12,000 0 15,000 3,000 25% 340,289 370,000 370,000 215,415 407,000 37,000 12% 421,802 493,500 493,500 278,435 540,500 47,000 110/0 0 1,000 1,000 0 1,000 0 0% 4,543 7,000 7,000 3,385 7,000 0 0% 500 800 800 700 1,200 400 50% 2,676 2,500 2,500 869 2,500 0 0% 51 6,000 6,000 35 6,000 0 0% 1,277 2,000 2,000 425 9,000 7,000 233% 2,264 5,500 5,500 1,416 5,500 0 0% 11,310 24,800 24,800 6,829 32,200 7,400 30% 179,300 225,200 225,200 168,900 172,900 155,400 155,400 116,550 225,200 0 0% 155,400 0 0% 352,200 380,600 380,600 285,450 380,600 0 0% - Code Compliance/Animal Control Totals: 1,571,807 1,713,340 1,713,340 1,201,551 1,821,340 108,000 6% 38 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 6004 - Code Compliance/Animal Control 101-6004-50101 Permanent Full Time 537,300.00 100% - Animal Control/Code Compliance Supervisor 100% - Sr. Code Compliance Officer (3) 100% - Code Compliance Officer (2) 80% - Administrative Technician (20% Fire) 101-6004-60103 Professional Services 70,000.00 Short-term vacation rental compliance 101-6004-60108 Technical 1,000.00 Riverside County recording fees for liens 101-6004-60111 Administrative Citation Service 25,000.00 Data ticket processing of code compliance and police citations 101-6004-60320 Travel & Training 7,000.00 Code Enforcement officer training events 101-6004-60351 Membership Dues 1,200.00 CA Association of Code Enforcement Officers (CACEO) 101-6004-60410 Printing 6,000.00 Community educational outreach 39 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 6005 - Public Safety Administration 50 - Salaries and Benefits 101-6005-50101 Permanent Full Time 0 193,600 193,600 22,808 151,000 (42,600) 0% 101-6005-50105 Salaries - Overtime 0 0 0 845 0 0 0% 101-6005-50150 Other Compensation 0 0 0 170 0 0 0% 101-6005-50200 PERS-City Portion 0 14,900 14,900 2,402 11,900 (3,000) 0% 101-6005-50215 Other Fringe Benefits 0 0 0 525 1,690 1,690 0% 101-6005-50221 Medical Insurance 0 43,100 43,100 6,724 35,500 (7,600) 0% 101-6005-50222 Vision Insurance 0 0 0 33 0 0 0% 101-6005-50223 Dental Insurance 0 0 0 221 0 0 0% 101-6005-50224 Life Insurance 0 0 0 26 0 0 0% 101-6005-50225 Long Term Disability 0 1,300 1,300 141 1,000 (300) 0% 101-6005-50230 Workers Comp Insurance 0 8,600 8,600 6,450 8,600 0 0% 101-6005-50240 Social Security -Medicare 0 2,800 2,800 478 2,200 (600) 0% 101-6005-50251 Temporary 0 0 0 9,035 0 0 0% 50 - Salaries and Benefits Totals: 0 264,300 264,300 49,858 211,890 (52,410) 00/0 62 - Maintenance & Operations 101-6005-60320 Travel & Training 0 5,000 5,000 0 5,000 0 0% 101-6005-60400 Office Supplies 0 1,000 1,000 0 1,000 0 0% 101-6005-60406 Disaster Prep Supplies 0 0 0 9,516 0 0 0% 62 - Maintenance & Operations Totals: 0 6,000 6,000 9,516 6,000 0 00/0 69 - Internal Service Charges 101-6005-98110 Information Tech Charge 0 52,000 52,000 39,000 I 52,000 0 0% 69 - Internal Service Charges Totals: 0 52,000 52,000 39,000 52,000 0 00/0 6005 - Public Safety Administration Totals: 0 322,300 322,300 98,373 269,890 (52,410) 0% 40 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 6005 - Public Safety Administration 101-6005-50101 = Permanent Full Time 151,000.00 80% - Public Safety Director (20% Fire Fund) 50% - Administrative Technician (50% Fire Fund) 101-6005-60320 Travel & Training 5,000.00 41 CITY OF LA QUINTA 2022/23 Actuals GENERAL FUND EXPENSE DETAILS 2023/24 2023/24 Original Budget Current Budget 2023/24 YTD Activity* FY 2024/25 PROPOSED BUDGET 2024/25 24/25 vs. % Change Proposed Budget Current 23/24 in Budget 3005 - Parks Maintenance 50 - Salaries and Benefits 101-3005-50101 Permanent Full Time 256,858 278,700 278,700 203,062 299,400 20,700 8% 101-3005-50105 Salaries - Overtime 386 700 700 2,161 700 0 0% 101-3005-50106 Standby 13,058 15,000 15,000 8,482 15,000 0 0% 101-3005-50107 Standby Overtime 37,908 35,000 35,000 42,437 35,000 0 0% 101-3005-50150 Other Compensation 0 0 0 190 0 0 0% 101-3005-50200 PERS-City Portion 20,005 23,000 23,000 17,338 26,100 3,100 15% 101-3005-50215 Other Fringe Benefits 5,500 4,550 4,550 3,666 4,550 0 0% 101-3005-50221 Medical Insurance 66,621 83,700 83,700 58,107 81,800 (1,900) -2% 101-3005-50222 Vision Insurance 640 0 0 509 0 0 0% 101-3005-50223 Dental Insurance 3,363 0 0 2,634 0 0 0% 101-3005-50224 Life Insurance 249 0 0 184 0 0 0% 101-3005-50225 Long Term Disability 1,536 1,800 1,800 1,248 1,800 0 0% 101-3005-50230 Workers Comp Insurance 7,300 16,700 16,700 12,525 16,700 0 0% 101-3005-50240 Social Security -Medicare 4,705 4,100 4,100 3,990 4,000 (100) -3% 101-3005-50241 Social Security -FICA 0 0 0 1,056 0 0 0% 101-3005-50251 Temporary 0 0 0 17,009 0 0 0% 50 - Salaries and Benefits Totals: 418,129 463,250 463,250 374,600 485,050 21,800 5% 60 - Contract Services 101-3005-60112 Landscape Contract 729,648 935,000 935,000 678,194 I 1,200,000 265,000 36% 60 - Contract Services Totals: 729,648 935,000 935,000 678,194 1,200,000 265,000 36% 62 - Maintenance & Operations 101-3005-60117 Civic Center Lake Maintei 17,283 20,000 20,000 14,672 30,000 10,000 57% 101-3005-60136 Lighting Service 475 1,000 1,000 475 1,000 0 0% 101-3005-60184 Fritz Burns Pool Maintena 144,972 180,000 180,000 106,066 180,000 0 0% 101-3005-60189 SilverRock Lake Maintenz 16,875 17,400 17,400 15,160 20,000 2,600 15% 101-3005-60320 Travel & Training 1,800 5,000 5,000 4,859 5,000 0 0% 101-3005-60351 Membership Dues 595 1,000 1,000 890 1,000 0 0% 101-3005-60400 Office Supplies 617 1,000 1,000 297 1,000 0 0% 101-3005-60423 Supplies -Graffiti and Van 2,922 15,000 15,000 1,203 15,000 0 0% 101-3005-60427 Safety Gear 942 1,200 1,200 958 1,300 100 8% 101-3005-60431 Materials/Supplies 235,116 310,000 384,500 204,647 400,000 15,500 5% 101-3005-60432 Tools/Equipment 8,248 5,000 5,000 5,851 6,000 1,000 20% 101-3005-60554 LQ Park Water Feature 14,347 30,000 30,000 13,643 40,000 10,000 45% 101-3005-60557 Tree Maintenance 1,120 10,000 10,000 4,200 10,000 0 0% 101-3005-60690 Uniforms 1,919 3,000 3,000 1,990 5,000 2,000 67% 101-3005-60691 Maintenance/Services 355,784 385,000 385,000 526,969 450,000 65,000 21% 62 - Maintenance & Operations Totals: 803,016 984,600 1,059,100 901,880 1,165,300 106,200 13% 66 - Utilities 101-3005-61100 Gas -Utilities FB Pool 44,247 0 0 134 0 0 0% 101-3005-61102 Electric - Monticello Park 161 300 300 123 300 0 0% 101-3005-61103 Electric - Civic Center Par 38,118 31,000 31,000 41,142 40,000 9,000 30% 101-3005-61104 Electric - Pioneer Park - l 0 100 100 0 100 0 0% 101-3005-61105 Electric - Fritz Burns Park 17,605 15,000 15,000 15,289 17,000 2,000 13% 42 CITY OF LA QUINTA 101-3005-61106 Electric - Sports Complex 101-3005-61108 Electric - Colonel Paige - 101-3005-61109 Electric - Community Par 101-3005-61110 Electric - Adams Park - U 101-3005-61111 Electric - Velasco Park - l 101-3005-61113 Electric - Eisenhower Parl 101-3005-61114 Electric - Desert Pride - L 101-3005-61115 Electric - SilverRock Ever 101-3005-61116 Electric - XPark Complex 101-3005-61201 Water -Monticello Park - 101-3005-61202 Water - Civic Center Park 101-3005-61203 Water -Eisenhower Park 101-3005-61204 Water -Fritz Burns Park - 101-3005-61205 Water -Velasco Park - Uti 101-3005-61206 Water -Desert Pride - Uti 101-3005-61207 Water -Pioneer Park - Uti 101-3005-61208 Water -Seasons Park - Ui 101-3005-61209 Water -Community Park 101-3005-61211 Water - SilverRock Event 101-3005-61212 Water - XPark Complex 101-3005-61300 Telephone - Utilities 66 - Utilities Totals: GENERAL FUND EXPENSE DETAILS 2022/23 2023/24 2023/24 43,753 5,407 89,848 475 168 228 160 40,673 0 26,671 33,029 2,369 26,491 2,348 8,850 7,430 326 63,617 0 0 1,128 42,000 5,500 72,000 700 250 350 300 32,000 30,000 30,000 40,000 2,600 28,000 2,400 9,000 15,000 600 80,000 55,000 12,500 1,000 42,000 5,500 72,000 700 250 350 300 32,000 30,000 30,000 40,000 2,600 28,000 2,400 9,000 15,000 600 80,000 55,000 12,500 1,000 2023/24 Activity* 44,132 4,242 86,475 454 129 177 121 22,733 0 19,155 30,973 2,276 23,768 1,800 12,014 11,366 280 73,304 0 0 882 FY 2024/25 PROPOSED BUDGET 2024/25 24/25 vs. % Change d Budget Current 23/24 in Budget 46,000 4,000 10% 6,000 500 10% 84,000 12,000 17% 900 200 29% 300 50 25% 400 50 14% 350 50 20% 32,000 0 0% 30,000 0 0% 30,000 0 0% 40,000 0 0% 3,000 400 16% 28,000 0 0% 2,500 100 5% 14,000 5,000 63% 15,000 0 0% 600 0 0% 90,000 10,000 13% 55,000 0 0% 6,000 (6,500) -52% 1,000 0 0% 453,101 505,600 505,600 390,968 542,450 36,850 7% 69 - Internal Service Charges 101-3005-98110 Information Tech Charge 80,500 101,100 101,100 75,825 101,100 0 0% 101-3005-98130 Park Equipment Maintena 450,000 1,000,000 1,000,000 750,000 1,000,000 0 0% 101-3005-98140 Facility & Fleet Maintenar 172,900 155,400 155,400 116,550 155,400 0 0% 69 - Internal Service Charges Totals: 703,400 1,256,500 1,256,500 942,375 1,256,500 0 00/0 3005 - Parks Maintenance Totals: 3,107,294 4,144,950 4,219,450 3,288,017 4,649,300 429,850 13% 43 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 3005 - Parks Maintenance 101-3005-50101 Permanent Full Time 299,400.00 50% - Maintenance & Operations Deputy Director (50% Public Buildings) 50% - Maintenance & Operations Superintendentt (50% Lighting & Landscape Fund) 50% - Maintenance & Operations Crew Lead (50% Lighting & Landscape Fund) 50% - Sr. Maintenance & Operations Worker (50% Lighting & Landscape Fund 50% - Maintenance & Operations Worker- 3 (50% Lighting & Landscape Fund 101-3005-60112 Landscape Contract 1,200,000.00 Landscape contract services for all City Parks including the SilverRock event site and X-Park 101-3005-60184 Fritz Burns Pool Maintenance 180,000.00 Pool maintenance services 101-3005-60320 Travel & Training 5,000.00 Aquatic facility operator course Maintenance agreement school Playground certifications 101-3005-60351 Membership Dues 1,000.00 CA Parks & Recreation Association (CPRS) National Park & Recreation Association (NPRA) Amount 500 500 44 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET 101-3005-60691 Maintenance/Services 450,000.00 Landscape renovations, electrical and fence repairs, painting, tree removal and other landscape related maintenance and rep 101-3005-98130 Park Equipment Maintenance 1,000,000.00 Funds are transferred to the Park Equipment & Facility Internal Service Fund for park equipment replacements 45 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 3008 - Public Buildings 50 - Salaries and Benefits 101-3008-50101 Permanent Full Time 378,588 471,600 471,600 327,600 480,100 8,500 2% 101-3008-50105 Salaries - Overtime 94 500 500 1,697 500 0 0% 101-3008-50106 Standby 13,843 15,000 15,000 11,505 15,000 0 0% 101-3008-50107 Standby Overtime 18,120 20,000 20,000 16,293 20,000 0 0% 101-3008-50150 Other Compensation 481 500 500 380 500 0 0% 101-3008-50200 PERS-City Portion 32,514 43,500 43,500 30,543 45,200 1,700 5% 101-3008-50215 Other Fringe Benefits 5,850 7,150 7,150 4,725 5,850 (1,300) -23% 101-3008-50221 Medical Insurance 84,738 83,700 83,700 73,978 122,700 39,000 35% 101-3008-50222 Vision Insurance 1,208 0 0 973 0 0 0% 101-3008-50223 Dental Insurance 4,412 0 0 3,170 0 0 0% 101-3008-50224 Life Insurance 298 0 0 235 0 0 0% 101-3008-50225 Long Term Disability 2,337 3,000 3,000 2,025 3,100 100 5% 101-3008-50230 Workers Comp Insurance 9,400 26,200 26,200 19,650 26,200 0 0% 101-3008-50240 Social Security -Medicare 6,001 6,900 6,900 5,218 6,900 0 0% 50 - Salaries and Benefits Totals: 557,885 678,050 678,050 497,991 726,050 48,000 8% 60 - Contract Services 101-3008-60115 Janitorial 101-3008-60116 Pest Control 101-3008-60123 Security & Alarm 101-3008-60196 Annual Permits/Inspectio 60 - Contract Services Totals: 187,041 250,000 250,000 147,710 250,000 0 0% 7,519 9,500 9,500 6,860 9,500 0 0% 7,395 12,000 12,000 6,374 12,000 0 0% 6,375 8,000 8,000 6,508 8,000 0 0% 208,330 279,500 279,500 167,452 279,500 0 00/0 62 - Maintenance & Operations 101-3008-60320 Travel & Training 2,225 2,000 2,000 102 2,000 0 0% 101-3008-60400 Office Supplies 0 0 0 396 0 0 0% 101-3008-60427 Safety Gear 628 1,200 1,200 1,054 1,200 0 0% 101-3008-60431 Materials/Supplies 61,947 50,000 50,000 23,010 50,000 0 0% 101-3008-60432 Tools/Equipment 10,443 8,000 8,000 9,384 10,000 2,000 15% 101-3008-60481 Office Supplies 381 500 500 0 500 0 0% 101-3008-60667 HVAC 90,434 100,000 100,000 75,617 180,000 80,000 80% 101-3008-60690 Uniforms 1,733 2,000 2,000 1,890 2,000 0 0% 101-3008-60691 Maintenance/Services 88,550 90,000 90,000 53,849 120,000 30,000 32% 101-3008-61702 Facility Rent 907 0 0 0 0 0 0% 62 - Maintenance & Operations Totals: 257,246 253,700 253,700 165,301 365,700 112,000 41% 66 - Utilities 101-3008-61100 Gas - Utilities 13,562 13,000 13,000 4,969 13,000 0 0% 101-3008-61101 Electricity - Utilities 200,009 180,000 180,000 184,675 180,000 0 0% 101-3008-61200 Water - Utilities 10,016 10,000 10,000 8,215 10,000 0 0% 66 - Utilities Totals: 223,587 203,000 203,000 197,859 203,000 0 0% 69 - Internal Service Charges 101-3008-91842 Liability Insurance & Claii 67,000 65,000 65,000 48,750 65,000 0 0% 101-3008-98110 Information Tech Charge 103,500 158,800 158,800 119,100 158,800 0 0% 46 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Pro osed Budget Current 23 24 in Budqet 101-3008-98140 Facility & Fleet Maintenar 86,500 77,700 77,700 58,275 77,700 0 0% 69 - Internal Service Charges Totals: 257,000 301,500 301,500 226,125 301,500 0 00/0 3008 - Public Buildings Totals: 1,504,048 1,715,750 1,715,750 1,254,728 1,875,750 160,000 100/0 47 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 3008 - Public Buildings 101-3008-50101 Permanent Full Time 480,100.00 50% - Maintenance & Operations Deputy Director (50% Parks Maintenance) 100% - Maintenance & Operations Superintendent 100% - Maintenance & Operations Coordinator 100% - Maintenance & Operations Technician 100% - Maintenance & Operations Worker 101-3008-60115 Janitorial 250,000.00 Janitorial services for all public buildings including parks 101-3008-60320 Travel & Training 2,000.00 HVAC training 101-3008-60667 HVAC 180,000.00 For all public buildings including City Hall, Fritz Burns Pool, La Quinta Park, Maintenance Yard, Public Works Office, Sports Complex, and Wellness Center. 101-3008-60691 Maintenance/Services 120,000.00 Public building repairs and maintenance 48 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 7001 - Public Works Administration 50 - Salaries and Benefits 101-7001-50101 Permanent Full Time 394,977 423,300 423,300 350,379 433,497 10,197 3% 101-7001-50150 Other Compensation 1,506 500 500 380 500 0 0% 101-7001-50200 PERS-City Portion 37,962 44,700 44,700 35,400 45,000 300 1% 101-7001-50215 Other Fringe Benefits 5,200 5,200 5,200 4,150 5,200 0 0% 101-7001-50221 Medical Insurance 66,768 95,700 95,700 57,569 96,000 300 0% 101-7001-50222 Vision Insurance 910 0 0 730 0 0 0% 101-7001-50223 Dental Insurance 3,237 0 0 2,555 0 0 0% 101-7001-50224 Life Insurance 265 0 0 204 0 0 0% 101-7001-50225 Long Term Disability 2,430 2,700 2,700 2,041 2,800 100 5% 101-7001-50230 Workers Comp Insurance 8,400 19,100 19,100 14,325 19,100 0 0% 101-7001-50240 Social Security -Medicare 5,771 6,200 6,200 5,115 6,400 200 4% 50 - Salaries and Benefits Totals: 527,426 597,400 597,400 472,847 608,497 11,097 2% 60 - Contract Services 101-7001-60104 Consultants 500 100,000 100,000 0 I 100,000 0 0% 60 - Contract Services Totals: 500 100,000 100,000 0 100,000 0 00/0 62 - Maintenance & Operations 101-7001-60320 Travel & Training 3,925 5,000 5,000 2,967 5,000 0 0% 101-7001-60351 Membership Dues 0 1,500 1,500 0 1,800 300 20% 101-7001-60400 Office Supplies 1,172 2,000 2,000 2,136 4,000 2,000 100% 101-7001-60420 Operating Supplies 154 500 500 617 1,000 500 50% 62 - Maintenance & Operations Totals: 5,250 9,000 9,000 5,720 11,800 2,800 29% 69 - Internal Service Charges 101-7001-98110 Information Tech Charge 92,000 115,500 115,500 86,625 I 115,500 0 0% 69 - Internal Service Charges Totals: 92,000 115,500 115,500 86,625 115,500 0 00/0 001 - Public Works Administration Totals: 625,176 821,900 821,900 565,192 835,797 13,897 2% 49 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 7001 - Public Works Administration 101-7001-50101 Permanent Full Time 433,497.00 100% - Public Works Director/City Engineer 100% - Management Analyst 100% - Administrative Technician 100% - Administrative Assistant 101-7001-60104 Consultants 100,000.00 Professional services and on -call electrical services 101-7001-60320 Travel & Training 5,000.00 Certification trainings 101-7001-60351 Membership Dues 1,800.00 American Public Works Association (APWA) 50 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 7002 - Public Works Development Service 50 - Salaries and Benefits 101-7002-50101 Permanent Full Time 126,409 133,500 133,500 107,286 136,283 2,783 2% 101-7002-50150 Other Compensation 341 0 0 0 0 0 0% 101-7002-50200 PERS-City Portion 15,089 18,700 18,700 15,085 18,800 100 1% 101-7002-50215 Other Fringe Benefits 1,300 1,300 1,300 1,050 1,300 0 0% 101-7002-50221 Medical Insurance 7,265 23,900 23,900 5,700 27,500 3,600 15% 101-7002-50222 Vision Insurance 108 0 0 145 0 0 0% 101-7002-50223 Dental Insurance 748 0 0 986 0 0 0% 101-7002-50224 Life Insurance 65 0 0 52 0 0 0% 101-7002-50225 Long Term Disability 770 900 900 671 900 0 0% 101-7002-50230 Workers Comp Insurance 2,100 4,800 4,800 3,600 4,800 0 0% 101-7002-50240 Social Security -Medicare 1,876 2,100 2,100 1,590 2,100 0 0% 50 - Salaries and Benefits Totals: 156,072 185,200 185,200 136,165 191,683 6,483 4% 60 - Contract Services 101-7002-60103 Professional Services 101-7002-60104 Consultants 101-7002-60183 Map/Plan Checking 60 - Contract Services Totals 68,023 100,000 3,500 5,000 95,256 150,000 100,000 5,000 150,000 17,666 3,500 79.126 100,000 5,000 150,000 0% 0% 0% 166,779 255,000 255,000 100,292 255,000 0 00/0 62 - Maintenance & Operations 101-7002-60320 Travel & Training 0 1,500 1,500 68 1,500 0 0% 101-7002-60351 Membership Dues 0 500 500 0 500 0 0% 101-7002-60420 Operating Supplies 0 500 500 1,037 500 0 0% 101-7002-60450 Advertising 2,339 3,000 3,000 441 3,000 0 0% 62 - Maintenance & Operations Totals: 2,339 5,500 5,500 1,545 5,500 0 00/0 69 - Internal Service Charges 101-7002-98110 Information Tech Charge 101-7002-98140 Facility & Fleet Maintenar 69 - Internal Service Charges Totals: 23,000 28,900 28,900 21,675 28,900 64,900 58,300 58,300 43,725 58,300 0% 0% 87,900 87,200 87,200 65,400 87,200 0 00/0 ublic Works Development Services Totals: 413,090 532,900 532,900 303,402 539,383 6,483 1% 51 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES Department : 7002 - Public Works Development Services 101-7002-50101 = Permanent Full Time � = 136,283.00 100% - Associate Engineer 101-7002-60103 Professional Services 100,000.00 Stormwater Commercial/Restaurant State Mandate National Pollution Discharge Elimination Systems 101-7002-60104 Consultants 5,000.00 Project consulting services 101-7002-60183 Map/Plan Checking 150,000.00 On -call map checking and engineering civil plan check services 101-7002-60320 Travel & Training 1,500.00 For various training events including: Desert Valley Builders Association meetings, American Public Works Association, professional engineering review courses, and water quality/ flood seminars 101-7002-60351 Membership Dues 500.00 Board of Civil Engineers license Other professional organizations 101-7002-60450 Advertising 3,000.00 Public hearing notices FY 2024/25 PROPOSED BUDGET 52 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 7003 - Streets- Traffic 50 - Salaries and Benefits 101-7003-50101 Permanent Full Time 168,187 220,300 220,300 56,558 141,300 (79,000) -32% 101-7003-50106 Standby 14,004 15,000 15,000 11,385 15,000 0 0% 101-7003-50107 Standby Overtime 14,189 15,000 15,000 18,818 15,000 0 0% 101-7003-50150 Other Compensation 321 500 500 0 0 (500) -100% 101-7003-50200 PERS-City Portion 13,945 16,900 16,900 3,916 11,100 (5,800) -32% 101-7003-50215 Other Fringe Benefits 1,300 3,900 3,900 1,050 2,600 (1,300) -104% 101-7003-50221 Medical Insurance 34,005 71,800 71,800 11,048 54,600 (17,200) -23% 101-7003-50222 Vision Insurance 250 0 0 73 0 0 0% 101-7003-50223 Dental Insurance 1,579 0 0 442 0 0 0% 101-7003-50224 Life Insurance 127 0 0 52 0 0 0% 101-7003-50225 Long Term Disability 896 1,400 1,400 321 900 (500) -31% 101-7003-50230 Workers Comp Insurance 6,300 14,300 14,300 10,725 14,300 0 0% 101-7003-50240 Social Security -Medicare 2,844 2,000 2,000 1,258 2,100 100 3% 50 - Salaries and Benefits Totals: 257,948 361,100 361,100 115,647 256,900 (104,200) -27% 60 - Contract Services 101-7003-60103 Professional Services 63,383 350,000 350,000 86,589 600,000 250,000 100% 101-7003-60120 Street Cleaning/Accident! 0 10,000 10,000 0 10,000 0 0% 60 - Contract Services Totals: 63,383 360,000 360,000 86,589 610,000 250,000 96% 62 - Maintenance & Operations 101-7003-60320 Travel & Training 101-7003-60351 Membership Dues 101-7003-60400 Office Supplies 101-7003-60420 Operating Supplies 101-7003-60423 Supplies -Graffiti and Van 101-7003-60432 Tools/Equipment 62 - Maintenance & Operations Totals: 64 - Other Expenses 101-7003-60510 Signal Knockdowns, Cont 64 - Other Expenses Totals: 66 - Utilities 101-7003-61101 Electricity - Utilities 66 - Utilities Totals: 3,716 15,000 15,000 3,257 15,000 0 0% 514 550 550 450 550 0 0% 340 500 500 0 500 0 0% 21,483 15,000 15,000 12,960 20,000 5,000 50% 104 0 0 0 0 0 0% 39,443 42,000 42,000 9,465 42,000 0 0% 65,600 73,050 73,050 26,132 78,050 5,000 90/0 18,434 5,000 5,000 0 5,000 0 0% 18,434 51000 51000 0 5,000 0 00/0 0 0 0 845 0 0 0% 0 0 0 845 0 0 00/0 69 - Internal Service Charges 101-7003-98110 Information Tech Charge 69,000 86,600 86,600 64,950 I 86,600 0 0% 69 - Internal Service Charges Totals: 69,000 86,600 86,600 64,950 86,600 0 00/0 7003 - Streets - Traffic Totals: 474,366 885,750 885,750 294,163 1,036,550 150,800 19% 53 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 7003 - Streets- Traffic 101-7003-50101 Permanent Full Time 100% - Traffic Signal Technician (2) 141,300.00 101-7003-60103 Professional Services 600,000.00 Street division support services and unanticipated repairs such as sidewalks, sinkholes, asphalt, and drainage channels Street sweeping, storm drain cleaning, and sign inventory replacement 101-7003-60320 Travel & Training 15,000.00 Onsite hearing tests American Traffic Safety Services Association (ATSSA) certification International Municipal Signal Association (IMSA) certification Class B commercial and eauioment operator certification 101-7003-60351 Membership Dues 550.00 CA Park and Recreations American Traffic Safety Services Association (ATSSA) 101-7003-60510 Signal Knockdowns, Contingen 5,000.00 For traffic signal repairs due to accidents 54 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 7006 - Engineering Services 50 - Salaries and Benefits 101-7006-50101 Permanent Full Time 175,844 240,200 240,200 199,541 254,200 14,000 6% 101-7006-50105 Salaries - Overtime 45 500 500 0 500 0 0% 101-7006-50106 Standby 1,479 5,000 5,000 0 5,000 0 0% 101-7006-50107 Standby Overtime 0 1,000 1,000 0 1,000 0 0% 101-7006-50150 Other Compensation 81 500 500 0 500 0 0% 101-7006-50200 PERS-City Portion 12,411 18,500 18,500 14,956 20,000 1,500 8% 101-7006-50215 Other Fringe Benefits 2,600 3,900 3,900 3,000 3,900 0 0% 101-7006-50221 Medical Insurance 36,761 71,700 71,700 40,694 81,800 10,100 14% 101-7006-50222 Vision Insurance 394 0 0 365 0 0 0% 101-7006-50223 Dental Insurance 2,330 0 0 2,142 0 0 0% 101-7006-50224 Life Insurance 135 0 0 157 0 0 0% 101-7006-50225 Long Term Disability 1,023 1,600 1,600 1,227 1,600 0 0% 101-7006-50230 Workers Comp Insurance 6,300 14,300 14,300 10,725 14,300 0 0% 101-7006-50240 Social Security -Medicare 2,581 3,500 3,500 2,893 3,500 0 0% 50 - Salaries and Benefits Totals: 241,985 360,700 360,700 275,700 386,300 25,600 7% 60 - Contract Services 101-7006-60103 Professional Services 101-7006-60104 Consultants 101-7006-60144 Contract Traffic Engineer 101-7006-60145 Traffic Counts/Studies 101-7006-60146 PM 10 - Dust Control 60 - Contract Services Totals; 62 - Maintenance & Operations 101-7006-60320 Travel & Training 101-7006-60351 Membership Dues 101-7006-60352 Subscriptions & Publicatic 101-7006-60420 Operating Supplies 101-7006-60427 Safety Gear 101-7006-60690 Uniforms 62 - Maintenance & Operations Totals: 0 20,000 220,000 0 20,000 (200,000) -95% 34,561 60,000 60,000 3,325 60,000 0 0% 189,362 200,000 200,000 58,521 200,000 0 0% 0 20,000 20,000 0 20,000 0 0% 77,071 250,000 250,000 4,234 250,000 0 00/0 300,994 550,000 750,000 66,080 550,000 (200,000) -34% 1,543 5,000 5,000 3,684 5,000 1,619 1,100 1,100 1,738 2,000 123 200 200 719 500 445 1,000 1,000 273 1,000 1,109 1,000 1,000 945 1,000 963 2,000 2,000 913 2,000 i,802 10,300 10,300 8,271 11,500 64 - Other Expenses 101-7006-60480 Contributions to OtherAc 28,731 0 196,500 50,536 I 200,000 64 - Other Expenses Totals: 28,731 0 196,500 50,536 200,000 0 0% 900 82% 300 150% 0 0% 0 0% 0 0% .,200 12% 3,500 2% 1,500 2% 69 - Internal Service Charges 101-7006-98110 Information Tech Charge 69,000 86,600 86,600 64,950 I 86,600 0 0% 69 - Internal Service Charges Totals: 69,000 86,600 86,600 64,950 86,600 0 00/0 7006 - Engineering Services Totals: 646,511 1,007,600 1,404,100 465,538 1,234,400 (169,700) -14% 55 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 7006 - Engineering Services 101-7006-50101 Permanent Full Time 100% - Assistant Construction Manager 100% - Construction Inspector (2) 101-7006-60103 Professional Services Regional scour analysis 101-7006-60104 Consultants Project design services 101-7006-60146 PM 10 - Dust Control 254,200.00 20,000.00 60,000.00 250,000.00 Vacant city land dust control - near SilverRock, Highway 111 next to the Marriott Hotel, and other city owned land 101-7006-60320 Travel & Training 5,000.00 Coachella Valley American Public Works Association (APWA) meetings California Local Technical Assistance Program (LTAP) training Geographic Information Systems (GIS) certification National Pollutant Discharge Elimination System (NPDES) certification Certified Inspector trainina 101-7006-60351 Membership Dues 2,000.00 American Public Works Association (APWA) Institute of Transportation Engineers (ITE) American Society of Civil Engineers (ASCE) 101-7006-60352 Subscriptions & Publications 500.00 Subdivision map act books 101-7006-60480 Contributions to Other Agencie 200,000.00 56 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Reimbursement agreement with the Coachella Valley Association of Governments (CVAG) for the Avenue 48 Arts and Music Line Project design. 57 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 6001 - Design & Development Administra 50 - Salaries and Benefits 101-6001-50101 Permanent Full Time 316,103 322,000 322,000 212,512 326,500 4,500 1% 101-6001-50110 Commissions & Boards 5,223 8,400 8,400 6,900 8,400 0 0% 101-6001-50150 Other Compensation 964 500 500 380 500 0 0% 101-6001-50200 PERS-City Portion 26,072 29,500 29,500 19,973 30,100 600 2% 101-6001-50215 Other Fringe Benefits 3,900 3,900 3,900 2,100 3,900 0 0% 101-6001-50221 Medical Insurance 59,891 71,800 71,800 33,075 81,800 10,000 13% 101-6001-50222 Vision Insurance 534 0 0 420 0 0 0% 101-6001-50223 Dental Insurance 1,682 0 0 946 0 0 0% 101-6001-50224 Life Insurance 218 0 0 104 0 0 0% 101-6001-50225 Long Term Disability 1,895 2,100 2,100 1,261 2,100 0 0% 101-6001-50230 Workers Comp Insurance 6,300 14,300 14,300 10,725 14,300 0 0% 101-6001-50240 Social Security -Medicare 4,663 4,700 4,700 3,182 4,800 100 2% 101-6001-50241 Social Security -FICA 310 0 0 428 0 0 0% 50 - Salaries and Benefits Totals: 427,755 457,200 457,200 292,005 472,400 15,200 4% 60 - Contract Services 101-6001-60104 Consultants 0 10,000 10,000 0 10,000 0 0% 101-6001-60122 Credit Card Fees 162,361 150,000 150,000 100,301 150,000 0 0% 60 - Contract Services Totals: 162,361 160,000 160,000 100,301 160,000 0 00/0 62 - Maintenance & Operations 101-6001-60320 Travel & Training 101-6001-60351 Membership Dues 101-6001-60352 Subscriptions & Publicati< 101-6001-60400 Office Supplies 101-6001-60410 Printing 101-6001-60420 Operating Supplies 101-6001-60450 Advertising 62 - Maintenance & Operations Totals: 69 - Internal Service Charges 101-6001-98110 Information Tech Charge 101-6001-98140 Facility & Fleet Maintenar 69 - Internal Service Charges Totals: 2,298 5,000 5,000 4,615 5,000 0 0% 250 600 600 500 600 0 0% 243 700 700 80 700 0 0% 235 2,000 2,000 1,260 2,000 0 0% 0 400 400 0 400 0 0% 1,286 1,000 1,000 365 1,000 0 0% 0 1,000 1,000 0 1,000 0 0% 4,313 10,700 10,700 6,820 10,700 0 00/0 69,000 86,600 86,600 64,950 08,100 97,100 97,100 72,825 86,600 0 0% 97,100 0 0% 177,100 183,700 183,700 137,775 183,700 0 00/0 ign & Development Administration Totals: 771,529 811,600 811,600 536,901 826,800 15,200 2% 58 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 6001 - Design & Development Administration 101-6001-50101' Permanent Full Time 100% - Design & Development Director 100% - Administrative Technician 100% - Administrative Assistant 101-6001-60104 Consultants Studies and predesign for projects Disadvantaged Business Enterprise Program 101-6001-60320 Travel & Training Staff professional development American Planning Association (APA) Conference 101-6001-60351 Membership Dues American Public Works Association (APWA) 101-6001-60352 Subscriptions & Publications The Desert Sun 101-6001-60410 Printing Materials for community events 101-6001-60450 Advertising Public noticing requirements 326,500.00 10,000.00 5,000.00 600.00 700.00 400.00 1,000.00 59 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 6002 - Planning 50 - Salaries and Benefits 101-6002-50101 Permanent Full Time 324,103 324,200 324,200 229,072 417,600 93,400 29% 101-6002-50150 Other Compensation 1,024 0 0 0 0 0 0% 101-6002-50200 PERS-City Portion 22,536 24,900 24,900 18,693 35,200 10,300 44% 101-6002-50215 Other Fringe Benefits 3,550 3,900 3,900 2,700 5,200 1,300 38% 101-6002-50221 Medical Insurance 50,456 71,800 71,800 47,737 109,100 37,300 50% 101-6002-50222 Vision Insurance 608 0 0 418 0 0 0% 101-6002-50223 Dental Insurance 2,523 0 0 1,738 0 0 0% 101-6002-50224 Life Insurance 190 0 0 140 0 0 0% 101-6002-50225 Long Term Disability 1,893 2,100 2,100 1,434 2,700 600 30% 101-6002-50230 Workers Comp Insurance 6,300 14,300 14,300 10,725 14,300 0 0% 101-6002-50240 Social Security -Medicare 4,738 4,700 4,700 3,322 6,100 1,400 30% 50 - Salaries and Benefits Totals: 417,922 445,900 445,900 315,980 590,200 144,300 33% 60 - Contract Services 101-6002-60103 Professional Services 112,837 150,000 150,000 36,509 150,000 0 0% 101-6002-60125 Temporary Agency Servii 33,343 0 0 0 0 0 0% 60 - Contract Services Totals: 146,180 150,000 150,000 36,509 150,000 0 00/0 62 - Maintenance & Operations 101-6002-60320 Travel & Training 9,864 14,000 14,000 6,578 14,000 0 0% 101-6002-60351 Membership Dues 375 500 500 250 500 0 0% 101-6002-60352 Subscriptions & Publicati< 304 400 400 0 600 200 200% 101-6002-60450 Advertising 8,956 10,000 10,000 8,630 15,000 5,000 63% 30,100 5,200 23% 62 - Maintenance & Operations Totals: 19,500 24,900 24,900 15,458 69 - Internal Service Charges 101-6002-98110 Information Tech Charge 69,000 86,600 86,600 64,950 I 86,600 0 0% 69 - Internal Service Charges Totals: 69,000 86,600 86,600 64,950 86,600 0 00/0 6002 - Planning Totals: 652,601 707,400 707,400 432,897 856,900 149,500 20% 60 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 6002 -Planning 101-6002-50101 Permanent Full Time 100% - Planning Manager 100% - Senior Planner 100% - Associate Planner 100% - Assistant Planner 101-6002-60103 Professional Services Professional planning Environmental services Specific plan amendments GIS consulting services Historical Survev 101-6002-60320 Travel & Training 417,600.00 150,000.00 14,000.00 Staff professional development Planning Commissioners Academy- League of Cities American Planning Association (APA) Conference 101-6002-60351 Membership Dues 500.00 American Planning Association (APA) 101-6002-60352 Subscriptions & Publications 600.00 International Cost Engineering Council - CEQA books Subdivision Map Act Planning and zoning laws 101-6002-60450 Advertising 15,000.00 Planning hearing notices Public notification requirements for city and development projects - Desert Sun Outreach workshops 61 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 6003 - Building 50 - Salaries and Benefits 101-6003-50101 Permanent Full Time 419,464 546,900 546,900 437,788 575,700 28,800 6% 101-6003-50105 Salaries - Overtime 27,044 20,000 20,000 20,645 20,000 0 0% 101-6003-50150 Other Compensation 2,187 2,000 2,000 1,520 2,000 0 0% 101-6003-50200 PERS-City Portion 36,041 49,900 49,900 39,346 54,000 4,100 10% 101-6003-50215 Other Fringe Benefits 5,200 7,800 7,800 5,200 7,800 0 0% 101-6003-50221 Medical Insurance 101,229 143,500 143,500 109,882 163,600 20,100 14% 101-6003-50222 Vision Insurance 1,098 0 0 1,116 0 0 0% 101-6003-50223 Dental Insurance 5,025 0 0 4,876 0 0 0% 101-6003-50224 Life Insurance 309 0 0 314 0 0 0% 101-6003-50225 Long Term Disability 2,566 3,500 3,500 2,703 3,700 200 6% 101-6003-50230 Workers Comp Insurance 12,500 28,600 28,600 21,450 28,600 0 0% 101-6003-50240 Social Security -Medicare 6,478 8,000 8,000 6,653 8,400 400 6% 50 - Salaries and Benefits Totals: 619,142 810,200 810,200 651,493 863,800 53,600 7% 60 - Contract Services 101-6003-60118 Plan Checks 491,810 290,000 290,000 323,177 I 350,000 60,000 14% 60 - Contract Services Totals: 491,810 290,000 290,000 323,177 350,000 60,000 14% 62 - Maintenance & Operations 101-6003-60320 Travel & Training 101-6003-60351 Membership Dues 101-6003-60352 Subscriptions & Publicati< 101-6003-60420 Operating Supplies 101-6003-60425 Supplies - Field 101-6003-60690 Uniforms 62 - Maintenance & Operations Totals: 2,220 3,000 3,000 3,562 4,000 1,000 33% 563 700 700 245 1,000 300 43% 2,416 1,500 1,500 506 1,500 0 0% 604 600 600 150 600 0 0% 661 1,000 1,000 104 1,000 0 0% 1,471 2,000 2,000 0 2,000 0 0% 7,935 8,800 8,800 4,568 10,100 1,300 13% 69 - Internal Service Charges 101-6003-98110 Information Tech Charge 138,000 173,200 173,200 129,900 173,200 0 0% 101-6003-98140 Facility &Fleet Maintenar 129,700 116,500 116,500 87,375 116,500 0 0% 69 - Internal Service Charges Totals: 267,700 289,700 289,700 217,275 289,700 0 00/0 6003 - Building Totals: 1,386,587 1,398,700 1,398,700 1,196,512 1,513,600 114,900 8% 62 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 6003 - Building 101-6003-50101 = Permanent Full Time 101-6003-60118 101-6003-60320 101-6003-60351 101-6003-60352 100% - Building Official 100% - Deputy Building Official 100% - Plans Examiner 100% - Senior Building Inspector (2) 100% - Building Inspector I Plan Checks 575,700.00 350,000.00 Consulting services as needed to support plan check review services Travel & Training 4,000.00 CA Building Officials (CALBO) International Code Council certifications Membership Dues 1,000.00 CA Building Officials (CALBO) International Association of Plumbing and Mechanical Officials (IAPMO) Subscriptions & Publications 1,500.00 Updated California Building Code books and other professional subscriptions 63 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 6006 - The Hub 50 - Salaries and Benefits 101-6006-50101 Permanent Full Time 472,916 687,900 687,900 458,217 728,325 40,425 7% 101-6006-50102 Salaries - Part Time 54,682 83,200 83,200 46,513 89,200 6,000 8% 101-6006-50105 Salaries - Overtime 0 0 0 37 0 0 0% 101-6006-50150 Other Compensation 1,707 0 0 0 0 0 0% 101-6006-50200 PERS-City Portion 45,827 60,700 60,700 45,999 67,200 6,500 13% 101-6006-50215 Other Fringe Benefits 6,500 11,700 11,700 7,400 11,700 0 0% 101-6006-50221 Medical Insurance 130,866 167,300 167,300 128,345 245,400 78,100 39% 101-6006-50222 Vision Insurance 1,378 0 0 1,211 0 0 0% 101-6006-50223 Dental Insurance 7,628 0 0 6,647 0 0 0% 101-6006-50224 Life Insurance 408 0 0 380 0 0 0% 101-6006-50225 Long Term Disability 2,941 4,000 4,000 2,811 4,600 600 17% 101-6006-50230 Workers Comp Insurance 16,700 42,900 42,900 32,175 42,900 0 0% 101-6006-50240 Social Security -Medicare 7,650 9,200 9,200 7,319 10,600 1,400 17% 50 - Salaries and Benefits Totals: 749,203 1,066,900 1,066,900 737,053 1,199,925 133,025 14% 60 - Contract Services 101-6006-60103 Professional Services 0 0 0 0 0 0 0% 101-6006-60125 Temporary Agency Servi( 58,115 0 0 40,373 25,000 25,000 42% 60 - Contract Services Totals: 58.115 0 0 40,373 25,000 25,000 19% 62 - Maintenance & Operations 101-6006-60320 Travel & Training 1,109 10,000 10,000 1,443 10,000 0 0% 101-6006-60351 Membership Dues 150 0 0 150 150 150 75% 101-6006-60420 Operating Supplies 4,230 5,000 5,000 1,022 5,000 0 0% 62 - Maintenance & Operations Totals: 5,489 15,000 15,000 2,615 15,150 150 2% 69 - Internal Service Charges 101-6006-98110 Information Tech Charge 183,900 259,800 259,800 194,850 I 259,800 0 0% 69 - Internal Service Charges Totals: 183,900 259,800 259,800 194,850 259,800 0 00/0 6006 - The Hub Totals: 996,706 1,341,700 1,341,700 974,891 1,499,875 158,175 13% 64 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 6006 - The Hub 101-6006-50101 Permanent Full Time 101-6006-50102 101-6006-60125 101-6006-60320 101-6006-60351 100% - Hub Manager 100% - Sr. Permit Technician 100% - Permit Technician (6) 100% - Administrative Assistant Salaries - Part Time 100% - Data Reporting Specialist (P/T) Temporary Agency Services Travel & Training 728,325.00 89,200.00 25,000.00 10,000.00 Tyler Annual Conference California Municipal Revenue & Tax Annual Conference Structured Query Language (SQL) training Fred Pryor- Technical & management training Membership Dues 150.00 65 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 1006 - Finance 50 - Salaries and Benefits 101-1006-50101 Permanent Full Time 838,404 984,700 984,700 726,109 1,037,600 52,900 6% 101-1006-50105 Salaries - Overtime 50 0 0 2,419 0 0 0% 101-1006-50110 Commissions & Boards 1,425 3,700 3,700 1,575 3,700 0 0% 101-1006-50150 Other Compensation 2,627 0 0 0 0 0 0% 101-1006-50200 PERS-City Portion 73,944 83,500 83,500 70,436 101,400 17,900 25% 101-1006-50201 PERS-Employee Portion 0 0 0 12 0 0 0% 101-1006-50210 PERS-Survivor Benefits (2) 0 0 (1) 0 0 0% 101-1006-50215 Other Fringe Benefits 11,570 12,870 12,870 9,345 12,900 30 0% 101-1006-50221 Medical Insurance 174,581 236,700 236,700 154,452 270,000 33,300 15% 101-1006-50222 Vision Insurance 1,902 0 0 1,560 0 0 0% 101-1006-50223 Dental Insurance 7,714 0 0 6,589 0 0 0% 101-1006-50224 Life Insurance 542 0 0 465 0 0 0% 101-1006-50225 Long Term Disability 5,148 6,300 6,300 4,482 6,600 300 6% 101-1006-50230 Workers Comp Insurance 17,600 47,200 47,200 35,400 47,200 0 0% 101-1006-50240 Social Security -Medicare 12,179 14,300 14,300 10,587 15,100 800 7% 101-1006-50241 Social Security -FICA 88 0 0 98 0 0 0% 50 - Salaries and Benefits Totals: 1,147,772 1,389,270 1,389,270 1,023,528 1,494,500 105,230 90/0 60 - Contract Services 101-1006-60102 Administration 13,081 20,000 20,000 9,996 30,000 10,000 50% 101-1006-60103 Professional Services 32,885 70,000 70,000 17,165 70,000 0 0% 101-1006-60104 Consultants 63,571 70,000 70,000 42,445 70,000 0 0% 101-1006-60106 Auditors 71,860 80,000 80,000 50,600 110,000 30,000 38% 101-1006-60122 Credit Card Fees 1,405 1,500 1,500 (352) 1,500 0 0% 60 - Contract Services Totals: 182,801 2411500 241,500 119,855 281,500 40,000 20% 62 - Maintenance & Operations 101-1006-60137 Community Engagement 101-1006-60320 Travel & Training 101-1006-60351 Membership Dues 101-1006-60352 Subscriptions & Publicati< 101-1006-60400 Office Supplies 101-1006-60410 Printing 101-1006-60450 Advertising 62 - Maintenance & Operations Totals: 69 - Internal Service Charges 101-1006-98110 Information Tech Charge 69 - Internal Service Charges Totals; 335 1,500 1,500 0 1,500 0 0% 12,345 25,000 25,000 13,001 25,000 0 0% 3,088 3,500 3,500 3,634 4,000 500 14% 2,550 2,200 2,200 1,784 2,200 0 0% 4,792 2,500 2,500 2,416 3,000 500 20% 2,428 5,000 5,000 1,664 5,000 0 0% 158 1,000 1,000 0 1,000 0 0% 25,696 40,700 40,700 22,499 41,700 1,000 2% 204,600 285,800 285,800 214,350 I 285,800 0 0% 204,600 285,800 285,800 214,350 285,800 0 00/0 1006 - Finance Totals: 1,560,869 1,957,270 1,957,270 1,380,232 2,103,500 146,230 90/0 66 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 1006 - Finance 101-1006-50101 Permanent Full Time 1,037,600.00 90% - Finance Director (10% Housing Fund) 100% - Finance Manager 100% - Principal Management Analyst 100% - Sr. Accountant 100% - Accountant 100% - Jr. Accountant 100% - Sr. Finance Technician 100% - Finance Technician (2) 100% - Administrative Technician 101-1006-60102 Administration 30,000.00 Bank service fees Fiscal custodian fees 101-1006-60103 Professional Services 70,000.00 Financial Advisory Commission Subcommittee Support Professional accounting support Armored Car Services Annual Budget -at -a -Glance Third party audits & policy verifications State Controller's Report - Citywide Pension Plan Review Consulting Services OPEB annual third-narty valuation. retiree health 101-1006-60104 Consultants 70,000.00 Property tax revenue analysis Sales tax revenue analysis 101-1006-60137 Community Engagement 1,500.00 Community workshop and budget outreach 101-1006-60320 Travel & Training 25,000.00 67 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET California Society of Municipal Finance Officers (CSMFO) Annual Conference California Municipal Treasurers Association (CMTA) Conference League of California Cities Conference Tyler ERP 10 training - Financial software Annual GASB update training Various half -day classes: CSMFO, GFOA, CAPPO 101-1006-60351 Membership Dues 4,000.00 CA Municipal Finance Officers Association (CSMFO) CA Municipal Treasurer Association (CMTA) Government Finance Officers Association (GFOA) CA Assoc. of Public Procurement Officials (CAPPO) UCLA Economic Forecast 101-1006-60352 Subscriptions & Publications 2,200.00 Annual Comprehensive Financial Report (ACFR) statistical data reports 101-1006-60410 Printing 5,000.00 Accounts Payable and Payroll checks Budget and financial reports - covers and tabs Financial Advisory Commission reports 101-1006-60450 Advertising 1,000.00 Newspaper advertisements for surplus sales and Request for Proposals 68 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2022/23 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Change Actuals Original Budget Current Budget YTD Activity* Proposed Budget Current 23/24 in Budget 1007 - Central Services 50 - Salaries and Benefits 101-1007-50109 Vacation & Sick Leave Bu 130,044 150,000 150,000 120,455 150,000 0 0% 101-1007-50115 Contingency for Stafffing 0 500,000 500,000 0 500,000 0 0% 101-1007-50117 PERS - Unfunded Pensior 12,427,058 950,000 950,000 955,108 200,000 (750,000) -6% 101-1007-50200 PERS-City Portion 1,539 0 0 0 0 0 0% 101-1007-50221 Medical Insurance 926 0 0 0 0 0 0% 101-1007-50222 Vision Insurance 14 0 0 0 0 0 0% 101-1007-50223 Dental Insurance 66 0 0 0 0 0 0% 101-1007-50224 Life Insurance 4 0 0 0 0 0 0% 101-1007-50225 Long Term Disability 28 0 0 0 0 0 0% 101-1007-50240 Social Security -Medicare 1,887 0 0 1,747 0 0 0% 101-1007-50243 Employer Contrib Retiree 27,745 35,000 35,000 20,341 35,000 0 0% 101-1007-50244 State Unemployment Ins 31,582 25,000 25,000 90 25,000 0 0% 50 - Salaries and Benefits Totals: 12,620,892 1,660,000 1,660,000 1,097,740 910,000 (750,000) -6% 62 - Maintenance & Operations 101-1007-60351 Membership Dues 120 200 200 120 200 0 0% 101-1007-60401 Operating Supplies 0 1,000 1,000 0 1,000 0 0% 101-1007-60402 Forms, Copier Paper 4,787 5,000 5,000 2,816 5,000 0 0% 101-1007-60403 Citywide Supplies 10,066 8,000 8,000 9,952 10,500 2,500 31% 101-1007-60405 Miscellaneous Supplies 227 1,000 1,000 0 1,000 0 0% 101-1007-60470 Postage 17,583 25,000 25,000 14,262 25,000 0 0% 101-1007-60535 Sales Tax Reimbursemen 52,972 0 0 0 0 0 0% 101-1007-60536 TOT Resort Rebate Progr 0 100,000 400,000 49,995 100,000 (300,000) -100% 101-1007-60661 Postage Machine 22,912 13,000 13,000 11,886 13,000 0 0% 62 - Maintenance & Operations Totals: 108,667 153,200 453,200 89,031 155,700 (297,500) -72% 68 - Capital Expenses 101-1007-74010 Land Acquisition 452,554 500,000 500,000 0 I 20,000 (480,000) -100% 68 - Capital Expenses Totals: 452,554 500,000 500,000 0 20,000 (480,000) -1000/0 69 - Internal Service Charges 101-1007-91842 Liability Insurance & Claii 101-1007-91843 Property & Crime Insurar 101-1007-91844 Earthquake Insurance 101-1007-98110 Information Tech Charge 101-1007-98140 Facility & Fleet Maintenar 69 - Internal Service Charges Totals: 529,000 556,000 556,000 417,000 556,000 0 0% 25,500 28,500 28,500 21,375 28,500 0 0% 67,000 70,000 70,000 52,500 70,000 0 0% 115,000 144,400 144,400 108,300 144,400 0 0% 85,800 77,000 77,000 57,750 77,000 0 0% 822,300 875,900 875,900 656,925 875,900 0 00/0 99 - Transfers Out 101-1007-99900 Transfers Out 6,944,642 14,159,000 40,764,381 7,989,314 I 19,809,000 (20,955,381) -45% 99 - Transfers Out Totals: 6,944,642 14,159,000 40,764,381 7,989,314 19,809,000 (20,955,381) -45% 1007 - Central Services Totals: 20,949,055 17,348,100 44,253,481 9,833,010 21,770,600 (22,482,881) -36% 69 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Department : 1007 - Central Services 101-1007-50115 Contingency for Stafffing 500,000.00 Workforce flexibility Work within Class and Compensation structure Manage CalPERS increases Ensure job rates reflect market rates 101-1007-50117 PERS - Unfunded Pension Liabi 200,000.00 Annual minimum CalPERS requirement to long-term pension liability. Based on valuation reports - inflation assumed at 2.3% with discount rate of 6.8%. Contribution per pension tier is as follows: Tier 1 - Classic $125,000 Tier 2 - $30,000 PEPRA Tier - $15,000 101-1007-50244 State Unemployment Insuranc 25,000.00 101-1007-60351 Membership Dues 200.00 Costco membership 101-1007-60536 TOT Resort Rebate Program 100,000.00 To promote new tourism activities within the City and encourage citywide participation and innovation proposals; rebate for hotels collecting resort fees up to $50,000 per propo 101-1007-74010 Land Acquisition 20,000.00 Engineering maps, property survey & title search services 101-1007-99900 Transfers Out 19,809,000.00 Art in Public Places - Maintenance/Installation CIP GF - City Hall Drainaqe Improvements CIP GF - Citywide Drainaqe Improvements CIP GF - Citywide Misc Concrete Improvements CIP GF - Citywide PMP Street Improvements Amount 50,000 1,000,000 477,000 1,000,000 2,000,000 70 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET CIP GF - Fritz Burns Park Improvements 2,000,000 CIP GF - LLD Median Improvements 500,000 CIP GF - Maintenance & Operations Yard 500,000 CIP GF - Sidewalk & ADA Ramp Improvements 75,000 CIP GF - Villaqe Parkinq Lot Utility Underqround 500,000 Gas Tax Fund - Supplement Operations 500,000 Law Enforcement Fund - Deceased LQ Officers 2,000 LLD Fund - Supplement Maint. Operations 2,500,000 Measure G - Citywide Doq Park Improvements 500,000 Measure G - Cultural Campus 1,000,000 Measure G - Fritz Burns Park Improvements 2,500,000 Measure G - Hwy 111 Corridor Implementation 3,050,000 Measure G - Maintenance & Operations Yard 400,000 Measure G - Welcome Center Improvements 750,000 PARS Supplemental Pension Plan 5,000 SilverRock Resort 500,000 71 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Changein Original Budget Current Budget YTD Activity* Proposed Current 23/24 Budget 501 - FACILITY & FLEET REPLACEMENT 0000 - Undesignated 62 - Maintenance & Operations 501-0000-60448 Vehicle Registrations 0 0 813 0 0 0% 501-0000-60674 Fuel & Oil 155,000 155,000 89,209 155,000 0 0% 501-0000-60675 Parts, Accessories, and U 100,000 150,000 15,543 50,000 (100,000) -67% 501-0000-60676 Vehicle Repair & Mainter 100,000 100,000 61,383 100,000 0 0% 501-0000-60678 Street Sweeper 10,000 10,000 104 0 (10,000) -100% 501-0000-60679 Motorcycle Repair & Main 10,000 10,000 9,743 10,000 0 0% 62 - Maintenance & Operations Totals: 375,000 425,000 176,793 315,000 (110,000) -26% 63 -Insurance 501-0000-91843 Property & Crime Insurar 13,750 14,080 10,560 I 13,750 (330) -2% 63 - Insurance Totals: 13,750 14,080 10,560 13,750 (330) -20/b 68 - Capital Expenses 501-0000-71020 Furniture 25,000 25,000 8,367 25,000 0 0% 501-0000-71030 Vehicles, Rentals & Lease 85,000 85,000 22,707 30,000 (55,000) -65% 501-0000-71031 Vehicles, Purchased 75,000 175,000 29,928 75,000 (100,000) -57% 501-0000-71032 Building Leases 40,000 40,000 33,974 40,000 0 0% 501-0000-71103 City Bldg Repl/Repair 230,000 281,000 75,568 430,000 149,000 53% 501-0000-71111 Deprec Exp - Mach & EqL 50,000 50,000 0 50,000 0 0% 501-0000-71112 Depreciation Expense - B 25,000 25,000 0 25,000 0 0% 501-0000-71113 Depreciation Expense - V 100,000 100,000 0 100,000 0 0% 501-0000-71114 Depreciation Expense - N 5,000 5,000 0 5,000 0 0% 501-0000-80100 Machinery & Equipment 375,000 874,000 21,040 200,000 (674,000) -77% 68 - Capital Expenses Totals: 1,010,000 1,660,000 191,584 980,000 (680,000) -41% 99 - Transfers Out 501-0000-99900 Transfers Out 50,000 231,964 0 I 50,000 (181,964) -78% 99 - Transfers Out Totals: 50,000 231,964 0 50,000 (181,964) -78% 0000 - Undesignated Totals: 1,448,750 2,331,044 378,937 1,358,750 (972,294) -42% FACILITY & FLEET REPLACEMENT Totals: 1,448,750 2,331,044 378,937 1,358,750 (972,294) -42% 72 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Fund: 501 - FACILITY & FLEET REPLACEMENT 501-0000-71030 Vehicles, Rentals & Leases 30,000.00 City vehicles are leased through Enterprise 501-0000-71103 City Bldg Repl/Repair 430,000.00 Building repairs to include roof repair and interior/exterior painting 501-0000-80100 Machinery & Equipment 200,000.00 Mid -sized dump truck 73 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Changein Original Budget Current Budget YTD Activity* Proposed Current 23/24 Budget 502 - INFORMATION TECHNOLOGY 0000 - Undesignated 50 - Salaries and Benefits 502-0000-50101 Permanent Full Time 37,200 37,200 30,019 37,200 0 0% 502-0000-50200 PERS-City Portion 2,900 2,900 2,227 2,900 0 0% 502-0000-50215 Other Fringe Benefits 520 520 420 520 0 0% 502-0000-50221 Medical Insurance 9,600 9,600 4,252 9,600 0 0% 502-0000-50222 Vision Insurance 0 0 14 0 0 0% 502-0000-50223 Dental Insurance 0 0 124 0 0 0% 502-0000-50224 Life Insurance 0 0 21 0 0 0% 502-0000-50225 Long Term Disability 300 300 183 300 0 0% 502-0000-50240 Social Security -Medicare 600 600 435 600 0 0% 50 - Salaries and Benefits Totals: 51,120 51,120 37,695 51.120 0 00/0 60 - Contract Services 502-0000-60104 Consultants 502-0000-60108 Technical 502-0000-60300 Maintenance Agreements 502-0000-60301 Software Licenses 60 - Contract Services Totals: 62 - Maintenance & Operations 502-0000-60320 Travel & Training 502-0000-60351 Membership Dues 502-0000-60420 Operating Supplies 502-0000-60662 Copiers 62 - Maintenance & Operations Totals 66 - Utilities 502-0000-61300 Telephone - Utilities 502-0000-61301 Cell/Mobile Phones 502-0000-61400 Cable/Internet - Utilities 66 - Utilities Totals: 68 - Capital Expenses 502-0000-71047 City Clerk, Software Enhz 502-0000-71049 Software Implementatior 502-0000-71110 Depreciation Expense 502-0000-71111 Deprec Exp - Mach & EqL 502-0000-71115 Depreciation Expense - S 502-0000-80100 Machinery & Equipment 502-0000-80103 Computers 68 - Capital Expenses Totals: 480,000 480,000 390,913 480,000 0 0% 65,000 65,000 39,294 65,000 0 0% 6,000 6,000 31,761 33,125 27,125 452% 900,000 900,000 689,080 900,000 0 0% 1,451,000 1,451,000 1,151,048 1,478,125 27,125 2% 500 500 2,122 500 0 0% 0 0 390 0 0 0% 5,000 5,000 11,155 5,000 0 0% 80,000 80,000 9,206 80,000 0 0% 85,500 85,500 22,872 85,500 0 00/0 35,000 35,000 37,925 35,000 0 0% 60,000 60,000 41,601 60,000 0 0% 85,000 85,000 71,700 85,000 0 0% 180,000 180,000 151,227 180,000 0 00/0 0 0 0 13,000 13,000 0% 500,000 500,000 106,194 500,000 0 0% 5,000 5,000 0 5,000 0 0% 60,000 60,000 0 60,000 0 0% 70,000 70,000 0 70,000 0 0% 400,000 595,000 83,040 495,200 (99,800) -17% 280,000 280,000 100,155 280,000 0 0% 1,315,000 1,510,000 289,389 1,423,200 (86,800) -6% 0000 - Undesignated Totals: 3,082,620 3,277,620 1,652,231 3,217,945 (59,675) -20/o W2 - INFORMATION TECHNOLOGY Totals: 3,082,620 3,277,620 1,652,231 3,217,945 (59,675) -20/o 74 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Fund: 502 - INFORMATION TECHNOLOGY 502-0000-50101 Permanent Full Time 37,200.00 40% - Management Analyst (60% Housing Fund) 502-0000-60104 Consultants 480,000.00 Contracted information technology services 502-0000-60108 Technical 65,000.00 Cable services, wireless access points, modems, and virtual servers 502-0000-60320 Travel & Training 500.00 Fraud prevention, firewall, encryption, coding, and other IT - related trainings 502-0000-60420 Operating Supplies 5,000.00 Small equipment such as keyboards, computer mouses, cables, conference room TV's, speakers, docking stations, etc. 502-0000-71047 City Clerk, Software Enhancem 13,000.00 502-0000-80100 Machinery & Equipment 495,200.00 Aging inventory upgrades per 5-year plan Study Session AV upgrades 75 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Changein Original Budget Current Budget YTD Activity* Proposed Current 23/24 Budget 503 - PARK EQUIP & FACILITY FUND 0000 - Undesignated 68 - Capital Expenses 503-0000-71060 Parks 2,242,200 3,092,200 695,032 I 2,000,000 (1,092,200) -35% 68 - Capital Expenses Totals: 2,242,200 3,092,200 695,032 2,000,000 (1,092,200) -35% 0000 - Undesignated Totals: 2,242,200 3,092,200 695,032 2,000,000 (1,092,200) -35% 3 - PARK EQUIP & FACILITY FUND Totals: 2,242,200 3,092,200 695,032 2,000,000 (1,092,200) -35% 76 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Fund: 503 - PARK EQUIP & FACILITY FUND 503-0000-71060 Parks 2,000,000.00 Citywide park enhancements to include: Shade structures, drinking fountains, fitness equipment replacement, playground structures and other amenities 77 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE DETAILS FY 2024/25 PROPOSED BUDGET 2023/24 2023/24 2023/24 2024/25 24/25 vs. % Changein Original Budget Current Budget YTD Activity* Proposed Current 23/24 Budget 504-INSURANCE FUND 1010 - Insurance 60 - Contract Services 504-1010-60320 Travel & Training 5,000 5,000 1,336 5,000 0 0% 504-1010-60351 Membership Dues 1,000 1,000 0 1,000 0 0% 60 - Contract Services Totals: 6,000 6,000 1,336 6,000 0 00/0 62 - Maintenance & Operations 504-1010-60420 Operating Supplies 12,500 12,500 10,488 I 12,500 0 0% 62 - Maintenance & Operations Totals: 12,500 12,500 10,488 12,500 0 0% 63 -Insurance 504-1010-60441 Liability Insurance 395,000 395,000 395,165 380,000 (15,000) -4% 504-1010-60442 Claims 2,500 2,500 0 2,500 0 0% 504-1010-60443 Property Insurance 190,000 190,000 187,527 187,000 (3,000) -2% 504-1010-60446 Crime Insurance 2,000 2,000 1,800 2,000 0 0% 504-1010-60447 Earthquake Insurance 240,000 240,000 242,000 242,000 2,000 1% 504-1010-60452 Workers Comp Premium 270,000 270,000 269,483 226,000 (44,000) -16% 63 - Insurance Totals: 1,099,500 1,099,500 1,095,975 1,039,500 (60,000) -50/0 1010 - Insurance Totals: 1,118,000 1,118,000 1,107,799 1,058,000 (60,000) -50/o 504 - INSURANCE FUND Totals: 1,118,000 1,118,000 1,107,799 1,058,000 (60,000) -50/0 78 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE NOTES FY 2024/25 PROPOSED BUDGET Fund: 504 - INSURANCE FUND 504-1010-60320 Travel & Training 504-1010-60351 504-1010-60420 5,000.00 California Joint Powers Insurance Authority (CJPIA) Public Agency Risk Management Association (PARMA) Membership Dues 1,000.00 Public Agency Risk Management Association (PARMA) members Operating Supplies 12,500.00 Ergonomic assessments and first aid kit supplies/maintenance 79 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: May 8, 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, anticipated completion by 5/30/2024 • Single Audit for federal funds for fiscal year 2022/23- In process COMMITTEE UPDATES • FY 2024/25 General Fund Operating Budget (Commissioners Anderson, Kiehl, and Dorsey) o The FY 2024/25 budget process is in process by City staff and management. Initial requests have been received and are incorporated into the draft budget as presented. After this meeting, the committee will meet to cover revenue projections, expenditure requests, and proposed uses of Measure G sales tax revenue. o Finance Director to coordinate meeting timeline with committee members • 10-Year Projection Task Force (Commissioners Anderson, Batavick, and Dorsey) o Conducted initial meeting on January 20, 2023 o Additional meetings to be scheduled • Financial Statement and Audit training - staff is currently researching options CITY COMMISSIONER SEATS • The City is looking for interested citizens to fill vacancies on the following City Commissions: YOU CAN MAKE A DIFFERENCE! APPLY FOR OPEN COMMISSION SEATS FOR THE CITY OF LA QLIINTA The City of to Quints is locking for interested citlzens to fill voconcies on the following Clty Commissions. Planning Commission - 3 Seats Financial Advisory Commission - 4 Sea" Arts & community S@Nlces commission - 3 Seats Housing commission - 4 seats Palm Springs Airport Commission - 1 Seat Coachella Valley Conservation Commission Trails Management Subcommittee - 2 Seats C"Str4CHon Board or Appeaf5 -I Seat Applications must be submitted by June 19, 2024 Interviews will be conducted by the City Council/Housing Authority on June 26, 2024, at 130 PM. Applicants must be present for consideration. For more information, visit j loquintdca_gov/cam missions I I or call the City Ctsrh's Meet W 760,777,7162 Application deadline: Jung 19, 2024 Three-year term ending June 30, 2027 IntenAaws wlll be conducted by the City Council & Housing Applicants must be a resident of to Quinta Authority on June 26. 2024, at 3:30 pm and a registered voter. For an application and more information please contact the City Clerk's office at 760-777-7162 or visit: https://www.laguintaca.gov/commissions. CITY UPDATES • Hwy 111 Corridor Specific Plan; prior City Council and Planning Commission joint meeting held on: o September 26, 2023 o To date, expenditures related to the project are detailed in the Project Activity Report (Attachment 1), in the amount of $860,667.91 Revenue allocations of Measure G do not yet include the most recent quarter entry. • The City is currently exploring the following: o Feasibility of undergrounding utilities in various areas of the City; prior City Council study sessions held on: ■ September 19, 2023 ■ December 19, 2023 o Imperial Irrigation District (IID) power distribution substations in La Quinta cost -share options for upgrades; prior City Council study sessions held on January 16, 2024. Agreement with IID pending, tentatively going to Council on 5/21/2024. Staff encourages the FAC members to view the meetings as time permits. Tropical Storm Hilary — Federal Disaster Assistance o The City is currently working with FEMA and meeting on a weekly basis on the reporting and reimbursement process. More information on the City's potential reimbursement will be provided at future meetings. • Strategic Plan Update- The City recently held its first Strategic Plan Community presentation on 4/25/2024. As the Strategic Plan is developed, presentations will be made to the various boards and commissions, with plans to formally present to Council later this year. 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. 4 Qu 4�(& City of La Quinta ATTACHMENT 1 Project Activity Report By Project Number Report Dates: O7/01/2019 - 05/03/2024 Project Number Project Name Group Type Status 201905 Highway 111 Corridor Area Plan Implementati... Fund 401 Construction in Process St Improvements Active Revenues Account Key Account Name Category Total Activity 201905MG Measure G Funding Measure G - Measure G Funding -801,533.20 GL Account Number GL Account Name Post Date Description Vendor Name Item Number Activity 401-0000-49500 Transfers In 03/31/2020 MG 201905 HWY 111 CORRIDOR PLAN -1,980.00 401-0000-49500 Transfers In 06/30/2020 MG 201905 HIGHWAY 111 CORRIDOR AREA PLAN -5,006.25 FY 19/20 Total: -6,986.25 401-0000-49500 Transfers In 09/30/2020 MG 201905 HIGHWAY 111 CORRIDOR AREA PLAN -11,715.00 401-0000-49500 Transfers In 12/31/2020 MG 201905 HIGHWAY 111 CORRIDOR AREA PLAN -41,035.00 401-0000-49500 Transfers In 03/31/2021 MG 201905 HIGHWAY 111 CORRIDOR AREA PLAN -7,955.00 401-0000-49500 Transfers In 06/30/2021 MG HIGHWAY 111 CORRIDOR AREA PLAN -230,049.59 FY 20/21 Total: -290,754.59 401-0000-49500 Transfers In 09/30/2021 MG 201905 HIGHWAY 111 CORRIDOR PLAN -2,995.00 401-0000-49500 Transfers In 12/31/2021 MG 201905 HWY CORRIDOR AREA PLAN -30,468.25 401-0000-49500 Transfers In 03/31/2022 MG 201905 HWY CORRIDOR AREA PLAN -3,020.00 401-0000-49500 Transfers In 06/30/2022 MG 201905 HWY CORRIDOR AREA PLAN -130,479.46 FY 21/22 Total: -166,962.71 401-0000-49500 Transfers In 09/30/2022 MG 201905 HWY CORRIDOR AREA PLAN -14,775.00 401-0000-49500 Transfers In 12/31/2022 MG 201905 HIGHWAY 111 CORRIDOR AREA -4,537.50 401-0000-49500 Transfers In 03/31/2023 MG 201905 HIGHWAY 111 CORRIDOR AREA -145,350.50 401-0000-49500 Transfers In 06/30/2023 MG 201905 HIGHWAY 111 CORRIDOR AREA -120,554.00 FY 22/23 Total: -285,217.00 401-0000-49500 Transfers In 09/30/2023 MG 201905 HIGHWAY 111 CORRIDOR AREA -49,950.15 401-0000-49500 Transfers In 12/31/2023 MG 201905 HIGHWAY 111 CORRIDOR AREA -1,662.50 FY 23/24 Total: -51,612.65 Total Revenues: -801,533.20 Expenses Account Key Account Name Category Total Activity 201905D Design Expense Design - Design Expense 783,389.16 GL Account Number GL Account Name Post Date Description Vendor Name Item Number Activity 401-0000-60185 Design 12/18/2020 2019-05 HWY 111 CORRIDOR PROJECT (PLAN&ENG) GHD INC. 151505 8,290.00 401-0000-60185 Design 12/18/2020 2019-05 HWY 111 CORRIDOR PROJECT (PLAN&ENG) GHD INC. 153361 25,600.00 401-0000-60185 Design 04/16/2021 02/2021 - HWY 111 PLANNING/ ENGINEERING SVCS GHD INC. 158460 78,461.25 5/3/2024 6:15:00 PM Page 1 of 5 Project Activity Report Report Dates: O7/01/2O19 - 05/03/2024 GL Account Number GL Account Name Post Date Description Vendor Name Item Number Activity 401-0000-60185 Design 04/16/2021 12/2020 - HWY 111 PLANNING/ ENGINEERING SVCS GHD INC. 155454 32,923.75 401-0000-60185 Design 06/11/2021 04/2021 - HWY 111 PLANNING/ENGINEERING SVCS GHD INC. 161990 75,409.84 401-0000-60185 Design 06/25/2021 05/2021 - HWY 111 PLANNING/ENGINEERING SVCS GHD INC. 163575 34,827.25 FY 20/21 Total: 255,512.09 401-0000-60185 Design 10/08/2021 06/2021 - HWY 111 PLANNING/ENGINEERING SVCS GHD INC. 165668 19,315.75 401-0000-60185 Design 10/29/2021 07/2021 - HWY 111 PLANNING/ENGINEERING SVCS GHD INC. 380-0000621 8,620.00 401-0000-60185 Design 04/22/2022 03/24/22 - HWY 111 SITE TOUR LUNCH BANK OF THE WEST (PLEASE SEE... MAR-226925BM 207.43 401-0000-60185 Design 04/22/2022 03/24/22 - HWY 111 SITE TOUR TRANSPORTATION BANK OF THE WEST (PLEASE SEE... MAR-226925BM 460.00 401-0000-60185 Design 06/30/2022 03/2022 HWY 111 CORRIDOR PLANNING/ENGINEERING., GHD INC. 380-0012735 41,235.83 401-0000-60185 Design 06/30/2022 06/2022 HWY 111 CORRIDOR PLANNING/ENGINERRIN... GHD INC. 380-0016011 84,123.70 FY 21/22 Total: 153,962.71 401-0000-60185 Design 09/02/2022 07/2022 - HWY 111 CORRIDOR PLAN NING/ENGINERRI... GHD INC. 380-0017688 12,962.50 401-0000-60185 Design 03/03/2023 09/2022 HWY 111 CORRIDOR PLANNING/ENGINEERING., GHD INC. 380-0020901 49,617.50 401-0000-60185 Design 03/03/2023 10/2022 HWY 111 CORRIDOR PLANNING/ENGINEERING., GHD INC. 380-0023845 51,571.25 401-0000-60185 Design 03/03/2023 11/2022 HWY 111 CORRIDOR PLANNING/ENGINEERING., GHD INC. 380-0024095 18,251.25 401-0000-60185 Design 03/03/2023 12/2022 HWY 111 CORRIDOR PLANNING/ENGINEERING., GHD INC. 380-0025445 9,171.25 401-0000-60185 Design 03/17/2023 01/2023 HWY 111 CORRIDOR PLANNING/ENGINEERING., GHD INC. 380-0027217 12,726.75 401-0000-60185 Design 06/30/2023 02/2023 - HWY 111 CORRIDOR PLAN NING/ENGINEERI... GHD INC. 380-0028778 18,667.58 401-0000-60185 Design 06/30/2023 03/2023 - HWY 111 CORRIDOR PLAN NING/ENGINEERI... GHD INC. 380-0030405 9,366.25 401-0000-60185 Design 06/30/2023 04/2023 - HWY 111 CORRIDOR PLAN NING/ENGINEERI... GHD INC. 380-0031910 22,207.51 401-0000-60185 Design 06/30/2023 05/2023 - HWY 111 CORRIDOR PLAN NING/ENGINEERI... GHD INC. 380-0033492 22,721.95 401-0000-60185 Design 06/30/2023 06/2023 - HWY 111 CORRIDOR PLAN NING/ENGINERRI... GHD INC. 380-0035378 42,803.21 FY 22/23 Total: 270,067.00 401-0000-60185 Design 09/08/2023 07/2023 HWY 111 CORRIDOR PLANNING/ENGINEERING., GHD INC. 380-0036834 49,312.65 401-0000-60185 Design 01/26/2024 10/2023 - HWY 111 CORRIDOR PLAN NING/ENGINEERI... GHD INC. 380-0041445 54,534.71 FY 23/24 Total: 103,847.36 201905P Professional Expense Professional - Professional Expense 77,278.75 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 FY 19/20 Total: 6,986.25 401-0000-60103 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 14JOB 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 5/3/2024 6:15:00 PM Page 2 of 5 Project Activity Report Report Dates: O7/01/2O19 - 05/03/2024 GL Account Number GL Account Name Post Date Description Vendor Name Item Number Activity 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 FY 20/21 Total: 35,242.50 401-0000-60103 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 11/2021 - HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.29 620.00 401-0000-60103 Professional Services 01/14/2022 12/2021 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.30 930.00 401-0000-60103 Professional Services 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 FY 21/22 Total: 13,000.00 401-0000-60103 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 FY 22/23 Total: 15,150.00 401-0000-60103 Professional Services 08/25/2023 07/2023 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.49 637.50 401-0000-60103 Professional Services 10/13/2023 08/2023 - 2019-05 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.50 437.50 401-0000-60103 Professional Services 10/27/2023 09/2023 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.51 700.00 401-0000-60103 Professional Services 11/17/2023 10/2023 - 2019-05 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.52 525.00 401-0000-60103 Professional Services 01/19/2024 11/2023 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.53 887.50 401-0000-60103 Professional Services 01/19/2024 12/2023 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.54 875.00 401-0000-60103 Professional Services 02/23/2024 01/2024 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.55 2,337.50 401-0000-60103 Professional Services 04/26/2024 03/2024 HIGHWAY 111 CORRIDOR NAI CONSULTING INC 2019-08.57 500.00 FY 23/24 Total: 6,900.00 5/3/2024 6:15:00 PM Page 3 of 5 Project Activity Report Report Dates: 07/01/2019 - 05/03/2024 Total Expenses: 860,667.91 201905 Total: 59,134.71 5/3/2024 6:15:00 PM Page 4 of 5 Project Activity Report Report Dates: O7/01/2O19 - 05/03/2024 Summary Project Summary Revenue Over/ Project Number Project Name Total Revenue Total Expense (Under) Expenses 201905 Highway 111 Corridor Area Plan Imp 801,533.20 860,667.91 -59,134.71 Project Totals: 801,533.20 860,667.91 -59,134.71 Group Summary Revenue Over/ Group Total Revenue Total Expense (Under) Expenses Fund 401 Construction in Process 801,533.20 860,667.91 -59,134.71 Group Totals: 801,533.20 860,667.91 -59,134.71 Type Summary Revenue Over/ Type Total Revenue Total Expense (Under) Expenses St Improvements 801,533.20 860,667.91 -59,134.71 Type Totals: 801,533.20 860,667.91 -59,134.71 5/3/2024 6:15:00 PM Page 5 of 5 DEPARTMENTAL REPORT ITEM NO. 2 City of La Quinta FINANCIAL ADVISORY COMMISSION MEE' DEPARTMENT REPORT TO: Members of the Financial Advisory Commission FROM Rosemary Hallick, Principal Management Analyst DATE. May 8, 2024 SUBJECT: FOURTH QUARTER 2023 (OCTOBER-DECEMBER) 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 fourth quarter sales from October to December 2023. • La Quinta's overall adjusted sales tax receipts for major industry groups decreased 3.2% as compared to last year. As a comparison, Riverside County was down 1.0% and the state was down 2.5%. The decrease was spread between various categories such as restaurants, general consumer goods, state & county pools, building and construction, and fuel & service stations. 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. Per Capita Sales La Cluirtta Riverside County Southern California California 40 10 2Q 3Q 4Q 1Q 2Q 3Q 4Q 10 2Q 3Q 20 21 21 21 21 22 22 22 22 23 23 23 Periods shown relied the period in which the sales occurred - Point of Sale • General consumer goods (such as department stores) made up 38% of sales tax revenue and 44% of Measure G revenue. • Autos and transportation made up 8% of sales tax revenue and 12% of Measure G revenue. • The City continues to benefit from online purchasing in the form of the County pool share, which was 15% of our sales tax revenue. $9.000 $8.000 $7.000 $6.000 $5.000 $4,000 $3,000 40 23 LSales Tax J Autos and Transportation Building and Construction Business and Industry Building and I Construction and Transportation Food and Drugs 4Q23 Percent of Total Fuel and Service Business Stations and FIndustry Restaurants and Hotels 4023 Percent of Total Food Fuel and and Serrrce Drug s Stations Restaurants and Hotels General Go nsurner Goads Measure G General Consu rner 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 $18.5 million in sales and transactions taxes through February 2024, as compared to $19.1 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 $ 1,273,172 $ 1,677,790 131.78% 4 Total 2023 '$ 3,351,741 �$ 4,247,698 126.73% 1 January 2024 advance $ 1,222,359 $ 1,512,916 123.77% 1 February 2024 advance $ 1,128,322 $ 1,382,154 122.50% 1 March 2024 1st Qtr payment 1 Total 2024 $ - $ - 2 April 2024 Advance 2 May 2024 Advance 2 June 2024 - 2nd Qtr Payment 2 Total 2024 $ - $ YTD Total $ 8,127,488 $ 10,336,994 2023/24 Budget $ 15,700,000 $ 12,700,000 Attachment 1: HdL Q4 2023 Sales Tax Update Attachment 2: HdL April 2024 California Forecast ATTACHMENT 1 CITY OF LA QU I NTA SALES TAX UPDATE 4Q 2023 (OCTOBER - DECEMBER) 06 0"a —C -dJ:wnr.i—iffT— IP *Allocation aberrations have been adjusted to reflect sales activity SALES TAX BY MAJOR BUSINESS GROUP $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 Legend $200,000 Q4 2022* $0 • Q4 2023* General Restaurants County Building Autos Food Fuel and Business Consumer and and State and and and Service and Goods Hotels Pools Construction Transportation Drugs Stations Industry CITY OF LA QUINTA HIGHLIGHTS La Quinta's receipts from October through Consumers are choosing bargain grocery December were 7.9% below the fourth stores and off brand items as they try to sales period in 2022. Excluding reporting reduce their spending. aberrations, actual sales were down 3.2%. The auto -transportation category reported Consumers cut back and restaurant visits slight increases in the fourth quarter, while as they look for more ways to save amid a the business -industry group remained flat. higher cost of living. The City's share of the countywide use tax Economic uncertainties and fluctuations pool increased 0.5% when compared to the in construction material costs have put a same period in the prior year. Measure G, damperon sales from building -construction. the City's voter -approved transactions and Totals from the general consumer goods use tax brought in an additional $4,639,871 category slipped as consumers dialed down in revenue. spending. Net of aberrations, taxable sales for all of Fuel prices in 4Q22 were, on average, Riverside County declined 1.0% over the eighteen cents a gallon lower than in 4Q22, comparable time period; the Southern reducing receipts from fuel -service stations. California region was down 2.0%. TOP 25 PRODUCERS Best Buy Marshalls Circle K PGA WEST Private Costco Clubhouse & Golf Courses Floor & Decor Ross Genesis/Hyundai of La Target Quinta Hobby Lobby TJ Maxx Home Depot Torre Nissan Icon Golf Cars La Quinta Tower Mart In N Out Burger Ulta Beauty Kohls Verizon Wireless La Quinta Chevrolet & Vons Cadillac Walmart Supercenter La Quinta Resort & Club Lowes Madison Club HdL° Companies www.hdlcompanies.com 1888.861.0220 Published by HdL Companies in Spring 2024 (S) STATEWIDE RESULTS California's local one cent sales and use tax receipts during the months of October through December were 2.5% lower than the same quarter one year ago after adjusting for accounting anomalies. The fourth quarter is notably the highest sales tax generating quarter of the year and exhibited diminished year -over -year returns as consumers balanced higher prices and financing costs with essential household needs. Higher interest rates impacted the auto - transportation sector, especially luxury vehicles, as the group dropped 6.2%. Inventories for many dealers returned, creating downward pressure on prices, further constraining receipts. Lenders have tightened credit standards, making loan financing challenging. Improved leasing activity was the lone bright spot. With slow movement expected by the Federal Treasury setting interest rate policy, future revenue growth may stagnate. Fuel and service stations contributed a similar downturn, as lower fuel prices reduced receipts from gas stations and petroleum providers. While this has been the trend throughout 2023, recently global crude oil prices have been on the rise and should see growth in the coming year. This decline also impacted the general consumer goods category as those retailers selling fuel experienced a similar drop. During this holiday shopping period, general consumer goods experienced lackluster sales as results pulled back 3.4%. Most sectors saw reductions with home furnishings, women's apparel, shoe and electronic -appliance stores being the most significant. Returns also marked the fourth consecutive quarter showing comparable declines. Similar to the anticipated trend of new vehicles, consumer spending may be sluggish in the near term. Even though revenue from most majorsectors pool collections contracted more taxes slowed, restaurant sales remained steady with a modest gain of 1.0%. Results from casual dining establishments grew during the early winter period as patrons enjoyed indoor dining. However, following the greater trend of consumers looking for value, fine dining eateries experienced lower receipts. The industry is still bracing for implementation of AB 1228, a new law increasing minimum wages for 'fast food restaurants', on April 1, 2024. Use taxes remitted via the countywide pools grew 1.0%, marking the first positive rebound after four consecutive quarters of decline. While overall online sales volume is steady, Cons.Goods allocated directly to local agencies via in -state fulfillment and through existing retail outlets. Statewide, calendar year 2023 ended with a 2.3% decline from 2022. Elevated inflation and interest rates led to higher cost of goods resulting in consumers not spending as much as they had prior. Following multiple years of post -pandemic tax growth assisted by federal tax policy and temporary workplace accommodations, consumers reassessed their economic conditions and limited purchases. As the Federal Reserve considers delaying softening rates, consumer spending could likely stagnate delaying a return to the normal historical growth trend in 2024. Pools 14% Restaurants Autos/Trans. *ADJUSTED FOR ECONOMIC DATA La Quinta County HdL State Business Type Q4'23* Change Change Change Casual Dining 231.0 -5.6%ID -2.1%4D 1.8%0 Leisure/Entertainment 140.0 1.9%0 -10.1%0 -0.6%4p Electronics/Appliance Stores 137.7 -1.0%0 -5.3%0 -7.7%0 Service Stations 120.3 -11.0%ID -4.4%4D -4.9%ID Family Apparel 101.7 6.0%0 -1.2%4D -0.4%ID Quick -Service Restaurants 97.0 3.6%0 1.8%0 0.4%0 Specialty Stores 88.4 1.9%19 0.5%0 -2.2%ID Grocery Stores 82.9 -7.0%I0 -2.9%4D -4.6%ID Fine Dining 70.2 -5.5%0 -4.4%ID -4.7%ID Home Furnishings 37.0 -34.3%0 -13.4%ID -10.1%0 *Allocation aberrations have been adiusted to reflect sales activitv -In thousands of dollars r ' v-:i:. !;'tf 53�: nay:'.'.- .r:��•� �tia a-r' :t ��'-icy ��'i� -� '-. 'y `'�� i' ._ _ - ( - •{_ � ��1 . K; �� :fir.,;'- � �`` `'� _� _ ^- -_•°' .-. ., ,�,. - "� ,� � A ��• t 'T�,_ ,.� � •ter-' ; ;� ����y�,.'� a ' � ,, �°° ,� •": , - • r s tip. .t=,- . 3°:. �.-. es. L"^m.1i9C 7"•in �'� ��`a': '� a1�:a�!R+ L,.x= � '� -�• ''o 'z'• 7'� i h . :• fab= � .,�h�s.. � � of Ya l�g+' �a ,`. • f � �' - �� � I ~. ~ � � .a .�R - .n . Pk tSonoma, CA rk• HdU Companies Los 888.861.0220 solutions@hdlcompanies.com I hdlcompanies.com HdP STATEWIDE Companies SALES TAX TRENDS Overview: As 2024 unfolds, many of the same economic conditions remain in play, with varying effects on the overall outlook. Monitoring the Fed to gauge when interest rates will recede is a primary focus. Monthly unemployment trends and inflation results will determine how swiftly and significantly borrowing costs decrease. Results from the final quarter of 2023 confirmed a shift in consumer behavior, with people opting for essential household items over more expensive purchases. With the exception of Business/Industry and Restaurants/Hotels, all other groups saw negative comparisons to the fourth quarter of 2022. Consumer debt has soared while personal savings dwindle, suggesting only modest gains in the coming fiscal year. 2023/2412024/25 IR Autos/Transportation - 2.0% The pricing dynamics of new vehicles, particularly within electric and I uxu ry segments, are adjustingfol lowing a period of significant inflation. Simultaneously, as dealership inventories stabilize, manufacturers are intensifying incentives, leading to reduced transactional values and impacting tax receipts. Dealerships are facing heightened competition and prevailing high lending rates, prompting potential buyers to exercise caution. Reports indicate a substantial tightening of credit conditions, affecting even creditworthy borrowers and contributing to a deceleration in market activity. Projections suggest a gradual market normalization through 2024, a modest resurgence anticipated in the latter half of the year driven by expected reductions in financing rates. ABuilding/Construction -1.3% 1 3.1% Strong demand for repairs to address storm -damaged roofing bolstered the construction sector. Both material suppliers and roofing contractors reported a second consecutive quarter of new business leading to long wait lists. Contractors are optimistic about new project bids for infrastructure work funded by the Infrastructure Investment and Jobs Act, as they drive more business for asphalt and concrete batch plants. Conversely, home improvement centers and lumber retailers experienced declines. Mortgage rates are decreasing, but not enough to stimulate new construction. When the Fed indicates that conditions warrant a reversal of prior rate hikes, a swift response from this sector is anticipated. Expansion in statewide construction activity is projected for FY 2026-27. * Business/Industry 0.5% 1 1.7% Following several years of expansion, this group experienced a 2.2% dip. Of the group's 21 different sectors, only six landed in positive territory. Fulfillment centers, accounting for 31% of total revenues, ended the quarter essentially even as ecommerce continued to fill more orders from warehouses based in California. The largest gain occurred in energy/utilities, driven by regional energy/solar projects. Most significantly, the medical/biotech sector contracted asequipment and supply needs tapered off. Both heavy and light industry faced inventory, pricing, and demand challenges, while sales in business - to -business and office equipment/IT slowed down. Considering the influencing variables for these various sectors, HdL projects limited growth for the current year followed by slow expansion in succeeding years. Food/Drugs -2.7% 1 1.5% Although inflation has softened, consumer spending at grocery stores declined 5% in Q4 of 2023. Shoppers, anticipating flat sales, pulled back on spending. Convenience -liquor stores experienced diminishing profits as younger adults turned to caffeinated non-alcoholic drinks. Cannabis retail sales saw a dismal 10% decrease as businesses and investors alike endure ongoing challenges from the illicit market. Furthermore, as one major drug store chain begins closing multiple locations across the state, consumers are turning to competitors or ecommerce. As this sector right -sizes through closures, mergers, and building consumer confidence, anticipate fewer taxes to be captured in the current year before gradually rising in the coming fiscal year. 2023/2412024/25 Fuel/Service Stations -2.6% 1 1.4% This sector experienced an overall reduction in the fourth quarter, primarily due to the initially skyrocketing, then plummeting prices of regular and diesel fuel. Oil barrel costs rose more than anticipated, which mitigated the overall reduction in sales tax. A normal historical pattern of prices at the pump, including a boost in the spring and summer months followed by a drop in late fall and early winter, is anticipated throughout calendar years 2024 and 2025. We forecast a minor overall increase in FY 2024 - 25 before returning to stable 2% growth in the outer years. General Consumer Goods -1.8% 1 1.6% Core retail categories fell short of expectations for the 2023 holiday quarter, leading to a contraction in direct local tax allocations across nearly all business types. This reinforces the anticipated pullback and tightening of family budgets. Recent CPI readings suggest that core goods prices are flat, so expect near -term results to be more influenced by changes in consumption rather than price. While borrowing costs remain elevated and access to cheap credit is now a thing of the past, the forecast lowered near -term expectations for the current fiscal year. The sooner the Fed implements rate cuts, the sooner consumers could feel some relief and return to purchasing beyond essential goods. The outlook expects mild growth in the 2024-25 fiscal year. Restaurants/Hotels 1.9% 1 3.3% Nationally, rising menu prices are reaching a tipping point where diners are opting to eat out less frequently. In California, this is worsened by the upcoming minimum wage hike for fast food restaurants, effective April 1. Savvy restaurateurs are strategically implementing increases to mitigate sticker shock while preparing for the rising operating costs. Meanwhile, other establishments have responded with significant, noticeable menu price surges, garnering attention nationwide. As consumers still desire to eat out and travel, they are making more cost-conscious decisions, resulting in slower growth. State and County Pools -0.4% 1 2.0% Ecommerce as a means of purchasing products remained strong. Online holiday spending across the country grew 5%when compared to the same period last year. More sales were made via mobile than desktop for the first time. Additionally, "buy now pay later" emerged as a popular alternative to credit card or cash usage; however, payment obligations rise in the spring and summer months. Year- to-date pool receipts declined in the first two quarters, affected by taxpayer filing changes and significant reductions in private party auto sales. Expansion of Al and voice search deployment along with improvements in personalized customer experiences through technology investments are expected to bolster future use taxes generated via online transactions. The slight downturn for FY 2023- 24 should turn positive next year. HdL Companies California Forecast April 2024 4 NATIONALAND STATEWIDE AN ONEcar4omiCs ECONOMIC DRIVERS 2023/2412024/25 U.S. Real GDP Growth 2.5% 11.9% �• Real GDP grew at an annual rate of 3.2% in 4Q2023, driven by increases in consumer spending, exports, and local and state government expenditures. Despite a decline in confidence, consumer spending rose a solid 2.6%, inflation adjusted, over the past year. Top categories for spending growth include recreational vehicles and goods (12%), new cars (4%), restaurants and hotels (4%) and recreational services (4%). The U.S. will almost certainly experience a reasonable pace of GDP growth in 2024, led by solid growth in consumer demand. Labor markets will remain tight, industrial production will be steady, and long run interest rates will likely stay in the same range. In many ways 2024 will resemble 2023 with a steady, moderately expanding economy. Strong consumer demand suggests inflation will be running hotter than the 2% pace that the Federal Reserve hopes to achieve. CA Unemployment Rate 5.2% 1 5.4% The unemployment rate in California has steadily increased since reaching a low of 3.8% in August 2022. In February 2024, unemployment reached 5.3%, marking a 0.8 percentage -point increase year -over -year, and a 0.1 percentage -point increase from the previous month. The state's unemployment rate remains elevated compared to the 3.9% rate in the United States overall. California continues to struggle with its labor supply, which fell by 6,900 in February. Since February 2020, the state's labor force has declined by 243,400 workers, a 1.2% decrease. This lack of growth can be attributed to the low number of housing permits issued in California; a workforce cannot grow if there is nowhere for workers to live. CA Total Nonfarm Employment Growth 0.8% 1 0.7% California's total nonfarm employment has grown 20.3% since the economic recovery from the pandemic began. As of February 2024, California had recovered all the jobs that were lost in March and April 2020, and there are now 294,100 more people employed in the state compared to pre -pandemic February 2020. Total nonfarm employment in California has grown 1.7% over this time compared to a 3.6% increase nationally. Job growth has experienced a drag as the labor force has declined in California. Given the sluggishness in labor force growth, the labor market in California is likely to continue cooling. 2023/24 1 2024/25 U.S. Unemployment Rate 3.9% 1 4.2% Unemployment in the nation remains low despite a slight increase from 3.7% in January to 3.9% in February. In January, there were 1.44 job openings for every unemployed person, indicating a tight labor market, despite higher interest rates. The U.S. job openings rate was 5.3%; lower than its peak in March 2022, but still higher than before the pandemic. Tight labor markets will continue to push up real earnings, which grew at rate of 3.6% in 2023. The labor force participation rate remained steady at 62.5%, slightly below the 63.3% rate right before the pandemic began, which is surprising given the strong real earnings growth. CA Residential Building Permits 110,931 1 112,638 Excess demand for housing continues to be a significant issue in California. Although the number of residential permits in the state remains above pre -pandemic levels, there are concerns that the current level is insufficient to close the demand gap. Residential permits rose sharply after 2020 and this trend has persisted, reaching an all-time high at the end of 2023. In the fourth quarter of 2023, the number of residential permits increased slightly at a rate of 6.8% year -over -year. Given the recent easing of mortgage rates, residential permits will likely continue to expand, and a moderate increase in permits is expected in the near term. CA Median Existing L ❑J Home Price $717,1731$762,767 Watch our webinar for more info! Following the pandemic recession, the median price of a single-family home in California peaked at $837,600 in April 2022. That median declined steadily for nearly a year, reaching $693,800 in January 2023. Since then, price growth has accelerated, with the state's median price rising 11.3%year-over-year by February 2024. Currently, home prices are 38.9% above their pre -pandemic peak in February 2020, with a median price of $784,500. The state's severe housing shortage is the primary reason prices have exhibited robust growth despite high mortgage rates and declining sales. Existing homeowners are reluctant to sell because they are "locked -in" to low mortgage rates, further exacerbating the housing shortage. HcIL Companies California Forecast April 2024 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 HdL's 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. HAND OUTS FAC MEETING MAY 81 2024 FINANCIAL ADVISORY COMMISSION MEETING - MAY 8, 2024 - HANDOUT 1 BY COMMISSIONER BATAVICK - COMMISSIONER'S ITEM NO. 1 Financial Advisory Committee Members, The Financial Advisory Commission (FAC) provides oversight of Measure G tax revenue. Measure G was passed by voters in November 2016 and provides a 1 % transactions and use tax, effective April 1, 2017 and with no sunset date, which is fully allocated to the City and protected from State takeaways. Measure G revenues are to be used in accordance with the ballot measure for public safety, Capital Improvement Projects and other general expenditures supporting our businesses and residents. For the fiscal years 2016/17 through 2022/23, Measure G revenues totaled $77 million. During these fiscal years Measure G uses have been for public safety services ($21 million) and Capital Improvement Projects ($27 million), with the balance of these revenues ($29 million) in reserves. For fiscal year 2023/24, as of January 31, 2024, Measure G revenues are about $9 million, with uses of $5 million for public safety and $6.3 million for Capital Improvement Projects, resulting in a current reserve balance of $25 million. The FAC's Measure G Sales Tax Compliance Report for Fiscal Year 2022/23 included a recommendation for the City to "explore the use of Measure G reserve funds to prioritize additional funding to accelerate Capital Improvement Projects, including for major street improvements." At the April 3, 2024 FAC Meeting, there was a discussion of projects to be included in Fiscal Years 2024/25 through 2028/29 Capital Improvement Program. The proposed projects are estimated to use only $19.2 million of Measure G funds. Assuming a starting point of March 31, 2024 of $25 million in Measure G reserves, and a conservative estimate of Measure G revenues over these next 5 fiscal years of $70 million ($14 million per fiscal year), spending only $19.2 million of Measure G funds for our Capital Improvement Program, and an estimated $30 million for public safety services ($7 million per fiscal year), would result in a projected Measure G reserve balance of $50 million at June 30, 2029. We strongly encourage the additional use of Measure G funds, while they are available and while economic conditions support it. Accordingly, we recommend a greater use of Measure G funds for the 5-year Capital Improvement Program by allocating certain spending from the General Fund to Measure G funds. Specifically, we suggest the $2 million dollar per year Pavement Management Street Improvements ($10 million in total) be earmarked from Measure G funds/reserves. Also, we suggest accelerating the $3 million payment for the Phase II I Public Safety Camera System expenditure in Fiscal Year 2025/26, to Fiscal Year 2024/25. We lastly suggest designating an additional use of Measure G funds for both the Maintenance and Operations Yard (which is currently projected to use $4 million of General Funds in addition to $4.4 million in Measure G funds), and the Fritz Burns Park Improvements (which is currently projected to use $2 million of General Funds in addition to $2.5 million of Measure G Funds). These suggestions utilize an additional $16 million of Measure G funds/reserves for our Capital Improvement Program over the next 5 fiscal years, reducing the projected Measure G Reserve balance at June 30, 2029 of $50 million to $35 million. This balance could be utilized for long-term capital projects discussed at the recent Community Workshop such as addressing the Imperial Irrigation District (IID) lease expiration and equipment needs and plan to underground utilities. FINANCIAL ADVISORY COMMISSION MEETING - MAY 8, 2024 - HANDOUT 2 BY COMMISSIONER BATAVICK - COMMISSIONER'S ITEM NO. 1 CITY OF LA QUINTA CAPITAL IMPROVEMENT PROGRAM REVENUE SUMMARY Community General Fund Measure G /Cultural SB 1 Road Maintenance DIF and Facilities Other Other Project # Project Description Operating Sales Tax Center DIF Maint/Rehab Transportation DIF Measure A Revenue Revenue Source Total 2024/2025 2425ADA ADA Accessible Ramps - Various Locations 20,000 20,000 2425CPM Citywide Preventative Maintenance Plan Improvements 50,000 Equip Replacement Fund 50,000 2425PMP Pavement Management Plan Street Improvements 2,000,000 2,000,000 2,000,000 2425STI Sidewalks - Various Locations 55,000 55,000 2425TMI Citywide Traffic Signal Maintenance Improvements 235,000 235,000 2425DRA Citywide Drainage Enhancements 477,000 2,000,000 Earmark Funding 2025 2,477,000 201702 Developer Reimbursement for DIF Eligible Improvements 400,000 400,000 201804 Landscape and Lighting Median Island Improvements 500,000 500,000 201805 Maintenance and Operations Yard 500,000 400,000 900,000 100,000 1,000,000 201901 Cultural Campus 1,000,000 500,000 1,500,000 201905 Highway 111 Corridor Area Plan Implementation (for 2022-25) 3,050,000 950,000 4,000,000 Earmark Funding 2024 8,000,000 202101 Dune Palms Pavement Rehabilitation (Miles Avenue to Fred Waring Drive) 200,000 200,000 202102 Fritz Burns Park Improvements 2,000,000 2,500,000 4,500,000 500,000 Reprogram project 202304 5,000,000 202205 Avenue 50 Widening Improvements (Jefferson Street to Madison Street) 579,109 579,109 202401 Avenue 50 Sidewalk Improvements (Washington Street to Avenida Montero) 400,000 400,000 202402 Washington Street Sidewalk Improvements (Calle Tampico to Avenue 52) 478,000 Reprogram of 23/24 S131 funds 478,000 202403 Cove Area Slurry Seal Improvements Phase 1 950,000 950,000 202404 City Hall Drainage Improvements 1,000,000 1,000,000 202405 Citywide Miscellaneous ADA Improvements 175,000 CDBG 175,000 202406 Citywide Miscellaneous Concrete Improvements 1,000,000 1,000,000 202407 Citywide Dog Park Improvements 500,000 1,000,000 Reprogram project 202310 1,500,000 202408 Village Parking Lot Utility Undergrounding 500,000 500,000 202409 Welcome Center Improvements 750,000 750,000 202410 Avenue 52 at Jefferson Street Roundabout Improvements 600,000 600,000 202411 SilverRock Way Slurry Seal Improvements 500,000 500,000 202505 Phase III Public Safety Camera System 3,000,000 FY 2024/2025 SUBTOTAL: 8,052,000 8,200,000 500,000 1,428,000 1,579,109 100,000 2,285,000 7,725,000 3,552,000 15,700,000 2025/2026 29,869,109 32,869,109 2526ADA ADA Accessible Ramps - Various Locations 20,000 20,000 2526CPM Citywide Preventative Maintenance Plan Improvements 50,000 Equip Replacement Fund 50,000 2526PMP Pavement Management Plan Street Improvements 2,000,000 2,000,000 2,000,000 2526STI Sidewalks - Various Locations 55,000 55,000 2526TMI Citywide Traffic Signal Maintenance Improvements 235,000 235,000 2425DRA Citywide Drainage Enhancements 477,000 477,000 201702 Developer Reimbursement for DIF Eligible Improvements 400,000 400,000 201804 Landscape and Lighting Median Island Improvements 500,000 500,000 201805 Maintenance and Operations Yard 3,500,000 4,000,000 7,500,000 7,500,000 201905 Highway 111 Corridor Area Plan Implementation 1,000,000 1,000,000 202501 Citywide Striping Refresh 500,000 500,000 202502 Highway 111/Simon Drive Dual Left Turn Lanes 723,850 723,850 202503 Cove Area Slurry Seal Improvements Phase 2 950,000 950,000 202504 Avenue 47 Pavement Rehabilitation (Washington Street to Adams Street) 512,617 512,617 202505 Phase III Public Safety Camera System 3,000,000 3,000,000 202506 Washington Street at Lake La Quinta Drive (New Traffic Signal) 430,000 430,000 202507 Francis Hack Lane Pavement Rehabilitation (Avenida Bermudas to Cul-De-Sac) 580,000 580,000 202508 Corporate Centre Drive Gap Closure 1,000,000 1,000,000 202509 5-Year PMPUpdate 75,000 75,000 FY 2025/2026 SUBTOTAL: 6,552,000 8,000,000 1,052,000 10,500,000 2026/2027 0 950,000 1,830,000 2,626,467 50,000 20,008,467 17,008,467 2627ADA ADA Accessible Ramps - Various Locations 20,000 20,000 2627CPM Citywide Preventative Maintenance Plan Improvements 50,000 Equip Replacement Fund 50,000 2627PMP Pavement Management Plan Street Improvements 2,000,000 2,000,000 2,000,000 FINANCIAL ADVISORY COMMISSION MEETING - MAY 8, 2024 - HANDOUT 2 BY COMMISSIONER BATAVICK - COMMISSIONER'S ITEM NO. 1 CITY OF LA QUINTA CAPITAL IMPROVEMENT PROGRAM REVENUE SUMMARY Community General Fund Measure G /Cultural SB 1 Road Maintenance DIF and Facilities Other Other Project # Project Description Operating Sales Tax Center DIF Maint/Rehab Transportation DIF Measure A Revenue Revenue Source Total 2627STI Sidewalks - Various Locations 55,000 55,000 2627TMI Citywide Traffic Signal Maintenance Improvements 235,000 235,000 2627DRA Citywide Drainage Enhancements 477,000 477,000 201702 Developer Reimbursement for DIF Eligible Improvements 400,000 400,000 201804 Landscape and Lighting Median Island Improvements 500,000 500,000 201905 Highway 111 Corridor Area Plan Implementation 1,000,000 1,000,000 202601 North La Quinta Slurry Seal Improvements/Pavement Repair 1,500,000 1,500,000 202602 Citywide Arterial Slurry Seal Improvements 1,000,000 1,000,000 FY 2026/2027 SUBTOTAL: 3,052,000 1,000,000 1,052,000 3,000,000 2027/2028 0 1,000,000 400,000 1,735,000 50,000 7,237,000 2728ADA ADA Accessible Ramps - Various Locations 20,000 20,000 2728CPM Citywide Preventative Maintenance Plan Improvements 50,000 Equip Replacement Fund 50,000 2728PMP Pavement Management Plan Street Improvements 2,000,000 2,000,000 2,000,000 2728STI Sidewalks - Various Locations 55,000 55,000 2728TMI Citywide Traffic Signal Maintenance Improvements 235,000 235,000 2728DRA Citywide Drainage Enhancements 477,000 477,000 201702 Developer Reimbursement for DIF Eligible Improvements 400,000 400,000 201804 Landscape and Lighting Median Island Improvements 500,000 500,000 201905 Highway 111 Corridor Area Plan Implementation 1,000,000 1,000,000 202701 Washington Street Pavement Rehabilitation Project (Sagebrush Lane to Fred Waring Drive) 994,367 2,000,000 2,994,367 FY 2027/2028 SUBTOTAL: 3,052,000 1,000,000 1,052,000 3,000,000 2028/2029 0 994,367 400,000 2,235,000 50,000 7,731,367 2829ADA ADA Accessible Ramps - Various Locations 20,000 20,000 2829CPM Citywide Preventative Maintenance Plan Improvements 50,000 Equip Replacement Fund 50,000 2829PMP Pavement Management Plan Street Improvements 2,000,000 2,000,000 2,000,000 2829STI Sidewalks - Various Locations 55,000 55,000 2829TMI Citywide Traffic Signal Maintenance Improvements 235,000 235,000 2829DRA Citywide Drainage Enhancements 477,000 477,000 201702 Developer Reimbursement for DIF Eligible Improvements 400,000 400,000 201804 Landscape and Lighting Median Island Improvements 500,000 500,000 201905 Highway 111 Corridor Area Plan Implementation 1,000,000 1,000,000 202701 Washington Street Pavement Rehabilitation Project (Sagebrush Lane to Fred Waring Drive) 998,053 1,995,502 2,993,555 FY 2028/2029 SUBTOTAL: 3,052,000 1,000,000 0 998,053 1,052,000 3,000,000 400,000 2,230,502 50,000 7,730,555 TOTAL FISCAL YEARS 2024/25 THROUGH 2O28/29: 23,760,000 19,200,000 500,000 5,370,420 4,609,109 100,000 11,111,969 7,925,000 72,576,498 7,760,000 35,200,000 POWER POINTS FAC MEETING MAY 89 2024 Financial Advisory Commission Meeting May 8, 2024 Financial Advisory Commission Meeting 5/8/2024 Business Session Item No. 1 Approve The Fiscal Year 2024/25 Meeting Dates :, _ _ �4t- Proposed Meeting Dates Wednesday August 14 Quarterly Wednesday October 2 Special Wednesday November 13 Quarterly Wednesday December 4 Special Wednesday February 12 Quarterly Wednesday April Special Wednesday May 7 Quarterly Wednesday June 11 Special QUESTIUNS & DISCUSSION Financial Advisory Commission Meeting 5/8/2024 Study Session Item No. 1 Discuss The Fiscal Year 2024/25 Investment Policy ..... . . . . . . 5/8/2024 Agency Bond Holdings As of 4/30/24 Federal Farm Credit Bank $20,000,000 Federal Home Loan Bank $20,000,000 Federal National Mortgage Association $12,000,000 Federal Home Loan Mortgage Corporation $ 9,400,000 Total Agency Bonds $61,400,000 Portfolio (Rounded) $230,000,000 26.70% GSE and SUPRA Total Debt Outstanding 4/312024 Debt Outstanding TOTAL ISSUES WTI) AVG FXb WTQ AVG MTY WT❑ AVG YRS $ Billions' COUP Total: 2,304 21.383 Appendices • Removed reference to Bank of the West, as transition to BMO is now complete • Removed BNY Mellon as an approved custodian bank, assets have been transferred to US Bank • Change staff title from Accounting Manager to Finance Manager Financial Advisory Commission Meeting 5/8/2024 Study Session Item No. 2 Discuss The Fiscal Year 2024/25 Preliminary Proposed Budget 5/8/2024 5/8/2024 �ai�a�ri■�RIu!■11110M• - General Fund Expenditures 2023/24 2023/24 2024/2 Change Currentv. Original owsed City Council 317,900 317,900 346,400 28,500 City Manager Department 1,588,360 1,588,360 1,641,100 52,740 Marketing & Community Relations 1,814,660 1,814,660 1,932,600 117,940 CityAttomey 800,000 800,000 800,000 - City Clerk Department 1,169,670 1,169,670 1,406,570 236,900 Human Resources 651,800 701,300 745,900 44,600 Police 18,583,800 18,618,300 19,643,300 1,025,000 Fire 9,889,120 10,247,120 10,547,110 299,990 Community Services Admin. 888,160 1,038,160 716,400 (321,760 Wellness Center Operations 837,870 837,870 683,600 (154,270 Recreational Programs & Events 1,578,150 1,578,150 1,956,000 377,850 Code Compliance/Animal Control 1,713,340 1,713,340 1,821,340 108,000 Public Safety Admin 322,300 322,300 269,890 (52,410 Parks Maintenance 4,144,950 4,219,450 4,649,300 429,850 Public Buildings 1,715,750 1,715,750 1,875,750 160,000 Public Works Administration 821,900 821,900 835,797 13,897 Public Works Dev. Services 532,900 532,900 539,383 6,483 Streets Department -Traffic 885,750 885,750 1,036,550 150,800 Engineering Services 1,007,600 1,404,100 1,234,400 (169,700 Design & Development Admin. 811,600 811,600 826,800 15,200 Planning 707,400 707,400 856,900 149,500 Building 1,398,700 1,398,700 1,513,600 114,900 The Hub 1,341,700 1,341,700 1,499,875 158,175 Finance 1,957,270 1,957,270 2,103,500 146,230 Centralized Services 17,348,100 44,253,481 21,770,600 (22,482,881 W Total Expenditures 72,828,750 100�31 81,252,665 (19,544,466 • Annual step increases & CaIPERS rate increase • Labor market adjustments • Contract rate increases Rise in cost of supplies & materials One-time expenditures such as election costs, fee studies, equipment replacement • One-time purchases in FY 2023/24 (machinery/equip ment & park upgrades) • Insurance premium reduction 5/8/2024 Police $1,025,000 Fire $299,990 City Clerk $236,900 Recreation Programs & $377,850 Special Events Parks Maintenance $429,850 Streets- Traffic $150,000 Salary & Benefits, estimated 5% rate increase Salary & Benefits, disaster prep supplies, roof repairs, and Emergency Operations Center enhancements Salary & Benefits, election services for November 2024, comprehensive fee study, STVR compliance software enhancements Expanded hours, increased events, conversion of P/T to F/T staff (reduction in Wellness Center Operations), and pool contract increase (year-round programming) Pending landscape contract to include increased service levels and tree inventory asset management Storm drain cleaning and sign inventory replacement a General Fund Summary GENERALFUND FY 2023124 PROPOSED BUDGET SUMMARY 80,714,300 •.- - Expenses.. BUDGET SURPLUS $ (538,365) r "' MEASURE G SALES TAX SUMMARY ; Available for Appropriation FY 2024/25 Budget Schedule • May 21 — City Council, Study Session #1 • June 4 — City Council, Study Session #2 • June 5 — Financial Advisory Commission 1 • June 12 — Housing Commission `N, • June 18 — City Council, Adoption For the latest budget information visit: www.laquintaca.gov/business/finance/budget Discussion & Questions Financial Advisory Commission Meeting 5/8/2024 Departmental Report Item No. 2 Fourth Quarter 2023 (October -December) Sales Tax Update for the City of La Quinta 5/8/2024 12 Sales and MG as Compared to Budget Sales Tax MG Thru February 22-23 $ 8,522,411 $ 10,592,307 Thru February 23-24 $ 8,127,488 $ 10,336,994 Variance -4.63% -2.41 % Budgeted Variance -0.78% -2.41 % *Covers cash receipts through April 2024 for the sales period of February The Financial Advisory Commission Will Hold a Special Meeting on June 5,2024 C K AL _ _- - CALIFORNIA