2024 08 29 FAC Minutes Special MeetingCALL TO ORDER
FINANCIAL ADVISORY COMMISSION
SPECIAL MEETING
MINUTES
THURSDAY, AUGUST 29, 2024
A special meeting of the La Quinta Financial Advisory Commission (Commission) was
called to order at 3:30 p.m. by Chair Dorsey.
PRESENT: Commissioners Anderson, Batavick, Kiehl, Lee, Mast, and Chair Dorsey
ABSENT: Commissioner Way
PLEDGE OF ALLEGIANCE
Commissioner Mast led the audience in the Pledge of Allegiance.
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None
CONFIRMATION OF AGENDA
Finance Director Martinez requested that Study Session Item No. 1 regarding Review of
the City's Strategic Plan Draft be moved up and considered out of Agenda order,
immediately after Business Session Item No. 1. The Commission concurred.
ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS — None
CONSENT CALENDAR ITEMS
1. APPROVE SPECIAL MEETING MINUTES DATED JUNE 5, 2024
2. APPROVE MEETING MINUTES DATED AUGUST 14, 2024
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED APRIL
30, 2024
4. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MAY
31, 2024
MOTION — A motion was made and seconded by Commissioners Batavick/Anderson to
approve the Consent Calendar as presented. Motion passed: ayes — 6, noes — 0, abstain
— 0, absent — 1 (Way).
BUSINESS SESSION
1. RECEIVE AND FILE THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023
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Finance Director Martinez presented the staff report, which is on file in the Finance
Department.
CONSULTANT: Lauryn Stapleton, Senior Manager with Eide Bailly LLP, auditing firm for
the City — explained the auditor's scope of work; reported that auditors provided an
"unmodified opinion," which is the highest level; and explained the role of the auditors and
their findings.
The Commission discussed effectiveness of the internal control over financial reporting
and the audit adjustments that resulted in classification of a material weakness
adjustment in the prior year; implementation of material weakness corrections;
reoccurring material weaknesses, if any; reason for Housing Authority Fund classification
change; and reason for the audit report completion date.
MOTION — A motion was made and seconded by Commissioners Kiehl/Mast to receive
and file the Annual Comprehensive Financial Report for the year ended June 30, 2023,
as presented. Motion passed: ayes — 6, noes — 0, abstain — 0, absent — 1 (Way).
STUDY SESSION »> taken out of Agenda order
1. REVIEW STRATEGIC PLAN DRAFT
Marketing and Communications Specialist Barkas presented the staff report, which is on
file in the Finance Department.
The Commission discussed community input in the process; expansion of the City's
boundaries not advisable until electrical capacity is addressed; possibility of City building
new electrical substations, then contracting with developers for reimbursement over time,
or cost-sharing with developers and Imperial Irrigation District (IID); attracting artificial
intelligence (Al) firms, which requires providing high volumes of electricity; improvement
of current draft over the original; IID grid being the most pressing matter; consider
requiring undergrounding of all new utility lines; and public safety being a critical
component.
BUSINESS SESSION — Continued
2. APPOINT MEMBERS OF THE COMMISSION TO SERVE AS CHAIRPERSON
AND VICE -CHAIRPERSON FOR FISCAL YEAR 2024-25
Finance Director Martinez presented the staff report, which is on file in the Finance
Department.
Commissioners discussed their general support to have the current Chair Dorsey and
Vice -Chair Anderson serve in their current capacities for another term.
MOTION — A motion was made and seconded by Commissioners Batavick/Kiehl to
appoint Commissioners Dorsey and Anderson to serve as Chairperson and Vice -
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Chairperson, respectively, for fiscal year 2023/24. Motion passed: ayes — 6, noes — 0,
abstain — 0, absent — 1 (Way).
3. RECEIVE AND FILE FOURTH QUARTER FISCAL YEAR 2023/24 TREASURY
REPORTS FOR APRIL, MAY, AND JUNE 2024
Principal Management Analyst Hallick presented the staff report, which is on file in the
Finance Department.
Commissioners discussed footnote number one details; broker consensus with staff's
investing decision; anticipation of growth from FY 2022/23 to 2023/24; CaIPERS pension
trust status, interest options, debt pay down; confidence in reforms made at CaIPERS for
better oversight; and timing of actuarial reports, making appropriations sooner than mid-
year, and conducting a review of past 24 or more months to determine the benefit of
earlier appropriations.
MOTION — A motion was made and seconded by Commissioners Mast/Anderson to
receive and file the fourth quarter fiscal year 2023/24 Treasury Reports for April, May,
and June 2024, as presented. Motion passed: ayes — 6, noes — 0, abstain — 0, absent —
1 (Way).
STUDY SESSION »> taken up above after Business Session No. 1
DEPARTMENTAL REPORTS
1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES
Finance Director Martinez provided an update on current and upcoming Finance
Department projects and City events, with the report on file in the Finance Department.
The Commission discussed Talus project updates; and Highway 111 Re -envisioning
project scope of work and cost estimate timeline.
2. FIRST QUARTER 2024 (JANUARY -MARCH) SALES TAX UPDATE
Principal Management Analyst Hallick provided an update on the 1st quarter 2024
(January — March) sales tax, with the report on file in the Finance Department.
The Commission discussed Dollar General Corp disappointing earnings; and Measure G
and sales tax adjustments.
COMMISSIONERS' ITEMS
Commissioner Kiehl noted the delay in completion of the 2023 audit, and cancellation of
the Commission's meeting a few weeks ago due to lack of a quorum; concerned about
staff impact; and suggested adjusting the meeting calendar with August meetings being
dark to allow staff to meet other deadlines.
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Staff will provide meeting date options including consequences of date changes.
ADJOURNMENT
There being no further business, it was moved and seconded by Commissioners
Anderson/Mast to adjourn this meeting at 5:15 p.m. Motion passed: ayes — 6, noes — 0,
abstain — 0, absent — 1 (Way).
Respectfully submitted,
Claudia Martinez, Interim Commission Secretary
City of La Quinta, California
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