2023/24 Measure G Sales Tax Annual ReportANNUAL MEASURE G SALES TAX OVERSIGHT
REPORT FOR FISCAL YEAR ENDED JUNE 30) 2024
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OVERVIEW
The Financial Advisory Commission (FAC) provides oversight of Measure G tax revenue.
This Annual Measure G Sales Tax Oversight Report covers the fiscal year beginning July
1, 2023 through June 30, 2024. Exhibit A includes a detailed summary of all Measure G
activity.
Measure G is a 1 % transactions tax applied to sales of taxable goods and is part of the
overall 8.75% sales tax rate in the City. It applies to goods transferred at the point of sale
(businesses within La Quinta City limits), and to goods purchased in other jurisdictions
that are delivered to addresses within the City.
Measure G revenue continues to help La Quinta thrive and is integral to the financial
health of the City. These funds assist in realizing the Sacred Values of La Quinta now
and in the future: Fiscal Sustainability, Health and Wellness, a Vibrant and Safe
Community, a Visually Beautiful City, and Cultural Diversity, to continue being recognized
as the "The Gem of the Desert".
Cactus Flower Landscape Improvements
REPORT HIGHLIGHTS
Fiscal Year 2023/24
• Revenue from Measure G was $15.5 million, remaining at a healthy level and just
1.3% below budgeted expectations and the prior fiscal year's revenue.
• An allocation of $7 million was made toward citywide infrastructure and public
recreational facility improvements, creating lasting assets for public use and
enjoyment.
• The City invested $5 million in public safety services, which continues to be a top
priority for La Quinta.
• An additional $4 million was added to Measure G reserves, bringing the total to
$33 million. These reserves provide operational flexibility, support public safety
services, and facilitate the efficient execution of capital improvement projects,
including funding for specific ongoing and future initiatives.
Since Inception
• To date, $93 million in total Measure G funds has been collected, and the City
continues to utilize these funds in alignment with the original intent of Measure G.
• Since inception, $34 million or 37% of Measure G funds have been allocated to
improving citywide infrastructure and public recreational facilities.
• Public safety services are a priority of La Quinta and have been supported with
$26 million or 28% of Measure G funds.
• Fiscally responsible budgeting, prudent long-term financial projections, funds
oversight, and financial transparency have strengthened the City's reserves with
Measure G funds since the implementation of Measure G in April 2017.
FISCAL YEAR 2023/24 REVENUES
Total Measure G sales tax revenue for fiscal year 2023/24 was $15.5 million, which was
slightly lower than the $15.7 million initially anticipated when budgeted. Revenue trends
remain slightly lower than the prior year overall. While the recent reduction of interest
rates has eased financing costs, personal consumption forecasts remain subdued for the
remainder of 2024. Consumers appear hesitant to significantly increase spending, likely
waiting for greater improvements in household economic conditions. This cautious
behavior may result in a slow rise in revenues in the upcoming years.
REVENUES SINCE INCEPTION
The chart below summarizes Measure G revenue received from fiscal years 2016/17
through 2023/24. While Measure G sales tax revenue for fiscal year 2023/24 fell slightly
below initial projections, the broader economic environment continues to influence
spending behavior. As household economic conditions gradually improve, revenue
growth is expected to recover, although at a measured pace. Staff will closely monitor
these trends and adjust projections as needed to ensure prudent financial planning for
the years ahead.
REVENUES SINCE INCEPTION
$93 MILLION
$20
$15
w
$10
$5
16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24
Fiscal Year
2
FISCAL YEAR 2023/24 USES
Operational expenses and capital improvements for fiscal year 2023/24 were prioritized,
while also including a prudent reserve allocation for operational flexibility in the budget.
By allocating a portion of Measure G revenue to reserves, the City intends to continue to
preserve and support public safety and capital projects in the future.
USES SINCE INCEPTION
Annually, the City hosts a community workshop to either affirm or determine the following
year's budget priorities. Staff then evaluates funding options such as grants, interagency
cost sharing, and use of reserves. Public safety services have been a community priority
since before Measure G, and with the support of this additional revenue, the City has
been able to maintain the public safety service levels the community desires.
The chart below summarizes the uses, since the inception, of Measure G funds.
Approximately, $34 million, or 37% of these funds are for projects to improve citywide
infrastructure and public recreational facilities.
USES SINCE INCEPTION
$93 MILLION
Reserves
$33M
Recre
$7M
blic Safety
$26M
astructure
rovements
$27M
Public Safety use reflects the City's continuing commitment to providing all
residents with a safe living environment.
• Infrastructure improvement projects have included numerous road repairs, street
striping projects, drainage improvements to avoid street flooding, an investment in
Highway 111 (a crucial commercial corridor for our City where a majority of sales
taxes are generated), an overhaul of landscape medians north of Highway 111,
and the design of an updated corporate yard with administrative and crew quarters.
Recreation projects have included funding for the new X-Park near La Quinta High
School, the SilverRock event site, design of a new future Village Art Plaza
Promenade connected to the La Quinta Museum, Fritz Burns Park improvements,
and the Sports Complex lighting replacement.
• Measure G reserves reflect fiscal responsibility and allow for operational flexibility
by ensuring cash is available for public safety services and capital improvement
projects for specific and ongoing future initiatives.
The chart below summarizes citywide infrastructure improvements and recreational
projects, totaling $34 million funded with Measure G revenues.
Infrastructure Improvements and
Public Safety Recreational Projects
Camera System $1.8M
Highway 111 $4.3M
Roads/Bridges $5.6M
Drainage $3.4M
Parks $6.9M
Landscaping $9.8M
City Facilities/Other $1.9M
$0 $2 $4 $6 $8 $10 $12
Millions
LOOKING AHEAD
As La Quinta continues to navigate economic challenges and opportunities, Measure G
remains a cornerstone of the City's ability to meet the community's needs and priorities.
Looking forward, the City is committed to leveraging Measure G funds to support projects
that sustain our vibrant community. Emphasis will be placed on critical areas such as:
• Critical electrical infrastructure improvements
• Public Safety
• Road and transportation improvements
• Revitalization of the Highway 111 Corridor
These efforts reflect La Quinta's dedication to fiscal responsibility, community
engagement, and its mission to foster a safe, beautiful, and thriving environment for all.
Measure G revenue remains a foundation of La Quinta's success, ensuring the City's
financial health while supporting its Sacred Values: Fiscal Sustainability, Health and
Wellness, a Vibrant and Safe Community, a Visually Beautiful City, and Cultural Diversity.
These funds enable La Quinta to uphold its identity as "The Gem of the Desert" for
generations to come.
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MEASURE G BACKGROUND AND COMPLIANCE SUMMARY
Voters passed Ballot Measure G in November 2016. Measure G provides a permanent
one percent transactions and use tax, effective April 1, 2017, which is fully allocated to
the City of La Quinta and protected from State takeaways.
All Measure G revenues shall be used in accordance with the ballot measure for costs
including police protection, projects such as parks, streets, landscaping, and flood
mitigation, programs attracting businesses, youth/senior services, sports recreation
programs, and preserving property values and quality of life. This report confirms all
Measure G tax revenues are properly recorded and are being used in accordance with
the ballot measure.
City Council, management, and staff thank all residents for their continuing support and
investment in our community.
Prior oversight reports and information on Measure G are located online at
https://www.laguintaca.gov/business/tax-measure. Questions regarding this report or the
use of Measure G funds may be directed to the Finance Department by calling 760-777-
7150 or by email at finance@laquintaca.gov.
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CITY OF LA QUINTA EXHIBIT A
Fiscal Year
6/17
Actual
1,462,650
7/18
Actual
9,967,657
8/19
Actual
10,958,118
9/20
Actual
10,310,526
0/21
Actual
12,594,389
1/22
Actual
15,615,802
2/23
Actual
16,088,087
3/24
Actual
15,471,183
TOTAL $ 92,468,412
Fiscal
Year
Project Description
Operational
Capital
Reserves
Total by Year
)16/17
Eisenhower Dr. Retention Basin
750,000
X-Park Funding
712,650
1,462,650
)17/18
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/ Alongi Building/ Retention Basin
1,453,850
Measure G Reserves 2017/18
1,084,350
9,967,657
)18/19
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 2018/19
4,383,775
10,958,118
)19/20
Public Safety Contract Services
2,750,000
Corporate Yard Administration/Crew Quarters
411,013
Highway 111 Corridor Improvements
1,000,000
North La Quinta Landscape Improvements
3,703,369
Village Art Plaza Promenade
310,000
Measure G Reserves 2019/20
2,136,144
10,310,526
)20/21
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
)21/22
Public Safety Contract Services
5,163,000
Landscape Renovation Improvements
1,408,356
Highway 111 Corridor Improvements
1,000,000
Fritz Burns Park Improvements
350,000
Allocate Advance Dune Palms Bridge Funding
7,468,061
Measure G Reserves 2021/22
226,385
15,615,802
)22/23
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
)23/24
Public Safety Contract Services
5,100,000
Highway 111 Corridor Improvements
1,000,000
Avenue 48 Art & Music Line
2,400,000
Fritz Burns 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
3,771,183
15,471,183
$ 92,468,412
TOTAL $ 25,908,000 $ 33,575,038 $
32,985,374
28%
36%
36%