2024 05 08 FAC MinutesFINANCIAL ADVISORY COMMISSION
MINUTES
WEDNESDAY, MAY 8, 2024
CALL TO ORDER
A regular meeting of the La Quinta Financial Advisory Commission (Commission) was
called to order at 4:00 p.m. by Vice -Chair Anderson.
PRESENT: Commissioners Batavick, Kiehl, Mast, Mills, Way, and Vice -Chair
Anderson
ABSENT: Chairperson Dorsey
PLEDGE OF ALLEGIANCE
Commissioner Batavick led the audience in the Pledge of Allegiance.
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None
CONFIRMATION OF AGENDA — Confirmed
ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS — None
CONSENT CALENDAR ITEMS
1. APPROVE MEETING MINUTES DATED APRIL 3, 2024
Motion — A motion was made and seconded by Commissioners Mast/Batavick to approve
meeting minutes dated April 3, 2024, as submitted. Motion passed: ayes — 5, noes — 0,
abstain — 1 (Mills), absent — 1 (Dorsey).
2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED
FEBRUARY 29, 2024
Motion — A motion was made and seconded by Commissioners Mills/Batavick to receive
and file revenue and expenditure reports dated February 29, 2024, as submitted. Motion
passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Dorsey).
BUSINESS SESSION
1. APPROVE THE FISCAL YEAR 2024/25 MEETING DATES
Finance Director Martinez presented the staff report, which is on file in the Finance
Department.
FINANCIAL ADVISORY COMMISSION MINUTES 1 MAY 8, 2024
REGULAR QUARTERLY MEETING
The Commission discussed changing some of the regular quarterly meeting dates and
proposed special meeting dates from the second Wednesday of the month to the first, and
the Commission's regular quarterly meetings start time from 4:00 p.m. to an earlier time.
Staff said a business session item will be agendized for Commission's consideration at the
next meeting.
Motion — A motion was made and seconded by Commissioners Mast/Way to amend the
Commission's meeting dates per the Commission's discussions above, and propose an
earlier regular quarterly meeting start time, and bring this item back for Commission
consideration at the next Commission meeting. Motion passed: ayes — 6, noes — 0,
abstain — 0, absent — 1 (Dorsey).
STUDY SESSION
1. DISCUSS THE FISCAL YEAR 2024/25 INVESTMENT POLICY (Policy)
Principal Management Analyst Hallick presented the staff report, which is on file in the
Finance Department.
The Commission and staff discussed federal agency securities.
Commissioner Kiehl recommended the following changes to the fiscal year 2024/25
Investment Policy:
• Professionally managed account allotted 50% for placing their investment portfolio
with a professional portfolio management/investment management firm, listed on
page 9 of Policy, be eliminated or changed to 100%.
• Adding additional investment pool examples under Section XI Investment Pools of
the Policy, listed on page 10.
The Commission reached a consensus and concurred with these recommendations to allow
for flexibility, contingent upon Council direction.
Further discussion followed on the pros and cons of having a professionally managed
portfolio versus staff managing it for the City and the timeline for adopting the Policy.
2. DISCUSS THE FISCAL YEAR 2024/25 PRELIMINARY PROPOSED BUDGET
Finance Director Martinez presented the staff report, which is on file in the Finance
Department.
The Commission and Staff discussed general fund revenue changes; decline of short-
term vacation rental permits due to the permanent ban; changes in general fund
expenditures; public safety (police and fire) services costs, anticipated cost increases,
and current level of services for police; and timeline for budget adoption.
The Commission inquired about the status of the Talus project, formerly SilverRock, and
the City's obligations under the Purchase, Sale, and Development Agreement with
FINANCIAL ADVISORY COMMISSION MINUTES 2 MAY 8, 2024
REGULAR QUARTERLY MEETING
SilverRock Development Company; Staff noted negotiations are underway and any
available updates will be provided at future Council meetings.
Additional discussion followed on position allocations; total current positions; and
Measure G fund allocations for Highway 111 Corridor Area Plan implementation, which
includes the road improvements; and Welcome Center improvements projects at the
recently acquired property by the City, formerly La Quinta Palms Realty office.
DEPARTMENTAL REPORTS — taken out of agenda order
Staff requested to present Departmental Report Item No. 2 before Departmental Report
Item No. 1; the Commission concurred.
2. FOURTH QUARTER 2023 (OCTOBER-DECEMBER) SALES TAX UPDATE
FOR THE CITY OF LA QUINTA >> > taken out of Agenda order
Staff provided an economic update for sales tax for the City of La Quinta.
1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES
Staff provided an update on current and upcoming Finance Department projects and City
events.
The Commission and staff discussed expenditures for the Highway 111 Corridor project;
reasons for delays in the audit for the completion of the City's Annual Comprehensive
Financial Report for fiscal year ending June 30, 2023; and any anticipated budget
adjustment changes.
The Commission inquired about upcoming vacancies on the Financial Advisory
Commission. Vice -Chair Anderson confirmed the four seats available.
COMMISSIONERS' ITEMS
1. COMMISSION RECOMMENDED CHANGES TO THE 5-YEAR CAPITAL
IMPROVEMENT PROGRAM (CIP)
Commissioner Batavick provided the Commission with a breakdown on recommended
changes to the 5-year CIP (Handout 1) as well as a redlined CIP revenue summary chart
(Handout 2) showing the recommended changes for use of Measure G funds to be
provided for Council's consideration. Further discussion followed on the allocated
reserves balance for Measure G funds and the timeline for providing the Commission's
recommended changes to the 5-year CIP and Measure G fund allocations for Council's
consideration.
FINANCIAL ADVISORY COMMISSION MINUTES 3 MAY 8, 2024
REGULAR QUARTERLY MEETING
ADJOURNMENT
There being no further business, it was
Mills/Mast to adjourn this meeting at 5:57 p.m
— 0, absent — 1 (Dorsey).
Respectfully submitted,
moved and seconded by Commissioners
. Motion passed: ayes — 6, noes — 0, abstain
Jessica Delgado, Administrative Technician/Commission Secretary
City of La Quinta, California
FINANCIAL ADVISORY COMMISSION MINUTES 4 MAY 8, 2024
REGULAR QUARTERLY MEETING