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2025 06 04 FAC Special MeetingFINANCIAL ADVISORY COMMISSION 1 JUNE 4, 2025 SPECIAL MEETING NOTICE AND CALL OF SPECIAL MEETING OF THE LA QUINTA FINANCIAL ADVISORY COMMISSION TO THE MEMBERS OF THE LA QUINTA FINANCIAL ADVISORY COMMISSION AND TO THE COMMISSION SECRETARY: NOTICE IS HEREBY GIVEN that a Special Meeting of the La Quinta Financial Advisory Commission is hereby called to be held on Wednesday, June 4, 2025, commencing at 3:30 p.m. at La Quinta City Hall located at 78495 Calle Tampico, La Quinta, CA 92253 for the following purpose: ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. RECOGNITION OF SERVICE FOR OUTGOING COMMISSIONER BATAVICK CONSENT CALENDAR 1. RECEIVE AND FILE SPECIAL MEETING MINUTES DATED MARCH 26, 2025 2. RECEIVE AND FILE MEETING MINUTES DATED MAY 7, 2025 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH 31, 2025 BUSINESS SESSION DEPARTMENTAL REPORTS 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES 1. RECOMMEND COUNCIL APPROVAL OF FISCAL YEAR 2025/26 INVESTMENT POLICY 2. RECEIVE AND FILE THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2024 3. RECEIVE AND FILE THIRD QUARTER FISCAL YEAR 2024/25 TREASURY REPORTS FOR JANUARY, FEBRUARY, AND MARCH 2025 4. DISCUSS FISCAL YEAR 2025/26 PRELIMINARY PROPOSED BUDGET AND APPROVE ALLOCATION OF MEASURE G SALES TAX REVENUE FINANCIAL ADVISORY COMMISSION 2 JUNE 4, 2025 SPECIAL MEETING Dated: May 30, 2025 /s/ Keith Dorsey KEITH DORSEY, Chairperson Attest: AMANDA GUERRERO, Commission Secretary DECLARATION OF POSTING I, Amanda Guerrero, Commission Secretary do hereby declare that the foregoing notice for the La Quinta Financial Advisory Commission Special Meeting of June 4, 2025, was posted on the City’s website, near the entrance to the Council Chamber at 78495 Calle Tampico and the bulletin board at the La Quinta Cove Post Office at 51321 Avenida Bermudas on May 30, 2025. AMANDA GUERRERO, Commission Secretary FINANCIAL ADVISORY COMMISSION Page 1 of 4 JUNE 4, 2025 SPECIAL MEETING – AGENDA SPECIAL MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL COUNCIL CHAMBER 78495 Calle Tampico, La Quinta WEDNESDAY, JUNE 4, 2025, AT 3:30 P.M. Members of the public may listen to this meeting by tuning-in live via www.laquintaca.gov/livemeetings. CALL TO ORDER Roll Call: Commissioners Anderson, Batavick, Kiehl, Lee, Mast, 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 1. RECOGNITION OF SERVICE FOR OUTGOING COMMISSIONER BATAVICK CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. RECEIVE AND FILE SPECIAL MEETING MINUTES DATED MARCH 26, 2025 5 Financial Advisory Commission agendas and staff reports are now available on the City’s web page: www.laquintaca.gov 2. RECEIVE AND FILE MEETING MINUTES DATED MAY 7, 2025 9 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH 31, 2025 13 Page 2 of 4 JUNE 4, 2025 FINANCIAL ADVISORY COMMISSION SPECIAL MEETING – AGENDA BUSINESS SESSION PAGE 19 51 243 1. RECOMMEND COUNCIL APPROVAL OF FISCAL YEAR 2025/26 INVESTMENT POLICY 2. RECEIVE AND FILE THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2024 3. RECEIVE AND FILE THIRD QUARTER FISCAL YEAR 2024/25 TREASURY REPORTS FOR JANUARY, FEBRUARY, AND MARCH 2025 4. DISCUSS FISCAL YEAR 2025/26 PRELIMINARY PROPOSED BUDGET AND APPROVE ALLOCATION OF MEASURE G SALES TAX REVENUE 311 STUDY SESSION – None DEPARTMENTAL REPORTS PAGE 389 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES COMMISSIONERS’ ITEMS ADJOURNMENT The next regular quarterly meeting of the La Quinta Financial Advisory Commission will be held September 11, 2025 commencing at 3:30 p.m. at the La Quinta City Hall Council Chamber, 78495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Amanda Guerrero, Secretary of the Financial Advisory Commission of the City of La Quinta, do hereby declare that the foregoing Agenda for the special Commission meeting of June 4, 2025, 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 30, 2025. DATED: May 30, 2025 Amanda Guerrero, Interim Commission Secretary City of La Quinta, California FINANCIAL ADVISORY COMMISSION Page 3 of 4 JUNE 4, 2025 SPECIAL MEETING – AGENDA 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.laquintaca.gov/our-city/city-government/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) 777-7055, 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. 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 CMartinez@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 FINANCIAL ADVISORY COMMISSION Page 4 of 4 JUNE 4, 2025 SPECIAL MEETING – AGENDA 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 Financial Advisory Commission requests to attend and participate in this meeting remotely due to “just cause” or “emergency circumstances,” as 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*** APPLICABLE ONLY WHEN TELECONFERENCE ACCESSIBILITY IS IN EFFECT Pursuant to Government Code § 54953(f) [AB 2449, Stats. 2022, Ch. 285, Rubio]. 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/j/88165609917 Meeting ID: 881 6560 9917 Or join by phone: (253) 215 – 8782 Written public comments – can be provided in person during the meeting or emailed to CMartinez@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 Page 1 of 3 MARCH 26, 2025 SPECIAL MEETING – MINUTES FINANCIAL ADVISORY COMMISSION SPECIAL MEETING MINUTES WEDNESDAY, MARCH 26, 2025 CALL TO ORDER A special meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 3:30 p.m. by Vice Chair Anderson. PRESENT: Commissioners Batavick, Kiehl, Lee, Mast, Way, and Vice-Chair Anderson ABSENT: Chairperson Dorsey 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 Staff requested the Commission consider the Study Session section before the Business Session section, out of agenda order; the Commission concurred. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR ITEMS 1. RECEIVE AND FILE MEETING MINUTES DATED FEBRUARY 12, 2025 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED DECEMBER 31, 2024 3. RECEIVE AND FILE SECOND QUARTER FISCAL YEAR 2024/25 TREASURY REPORTS FOR OCTOBER, NOVEMBER, AND DECEMBER 2024 The Commission discussed the December 2024 Community Services general ledger account including expenditures for several community events such as the Ironman 70.3 triathlon, Pancakes with Santa, Tree Lighting Ceremony, and audio-visual services for the Veterans Day Ceremony; Capital Improvement Program (CIP) projects revenue fluctuations between December 2023 and 2024; and inquiries regarding the new Tracker investment software and report customization options. CONSENT CALENDAR ITEM NO. 1 5 FINANCIAL ADVISORY COMMISSION Page 2 of 3 MARCH 26, 2025 SPECIAL MEETING – MINUTES MOTION – A motion was made and seconded by Commissioners Kiehl/Way to approve the Consent Calendar as presented. Motion passed: ayes – 6, noes – 0, abstain – 0, absent – 1 (Dorsey). STUDY SESSION >>> taken out of Agenda order 1. DISCUSS PROJECTS TO BE INCLUDED IN FISCAL YEARS 2025/26 THROUGH 2029/30 CAPITAL IMPROVEMENT PROGRAM Public Works Director McKinney and Administrative Technician Escarrega presented the staff report, which is on file in the Finance Department. The Commission discussed the CIP, focusing on funding sources, road maintenance prioritization, and the cost implications of proactive road rehabilitation; the widening of Avenue 50 in collaboration with the City of Indio; citywide striping locations and the integration of the pavement management master plan; budgeting for emergency repairs, including sinkholes; Bear Creek Trail restroom project; the Maintenance and Operations Yard facility project; difference in requirements and restrictions for federally funded projects versus city-funded ones; and commended staff for the efficient use of Measure G funds. 2. DISCUSS THE 2025 ANNUAL COMMUNITY WORKSHOP AND 2025/26 BUDGET PROCESS Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission discussed workshop attendance; additional opportunities for community engagement through town halls; the importance of increased public awareness regarding Imperial Irrigation District (IID) energy power capacity and supply issues; the City’s ongoing efforts to secure the necessary infrastructure and funding for future power demands; commended staff for efficiently and effectively leveraging City funds to achieve a No. 7 ranking in fiscal strength for La Quinta out of 419 cities in California with reported data, and staff’s continued efforts in managing City funds, reserve levels, and pension obligations. Staff noted that enhanced budget reports will be made available this year due to the implementation of the new budgeting software, providing a high-level overview of the City’s fiscal strengths and accomplishments, in addition to the standard financial details. BUSINESS SESSION >>> taken out of Agenda order 1. RECEIVE AND FILE FISCAL YEAR 2024/25 BUDGET UPDATE REPORT, APPROVE THE RECOMMENDED BUDGET ADJUSTMENTS, AND RECOMMEND COUNCIL APPROVAL OF ADDITIONAL DISCRETIONARY PAYMENT TO PAY OUTSTANDING PENSION OBLIGATIONS 6 FINANCIAL ADVISORY COMMISSION Page 3 of 3 MARCH 26, 2025 SPECIAL MEETING – MINUTES Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission discussed additional discretionary payments to reduce or eliminate the City’s outstanding pension obligations, which is a proactive measure against future interest accruals; and false alarm fines and collection efforts. MOTION – A motion was made and seconded by Commissioners Lee/Batavick to receive and file fiscal year 2024/25 budget update report, approve the recommended budget adjustments, and recommend Council approval of additional discretionary payment to pay outstanding pension obligations. Motion passed: ayes – 6, noes – 0, abstain – 0, absent – 1 (Dorsey). DEPARTMENTAL REPORTS 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Staff provided updates on current and upcoming Finance Department projects including the ongoing audit for fiscal year 2023/24 Annual Comprehensive Financial Report, Highway 111 corridor project expenditures, the newly formed Coachella Valley Power Agency for electrical infrastructure and power capacity needs, and efforts to secure Federal Emergency Management Agency reimbursements related to Tropical Storm Hilary repair expenses incurred by the City. COMMISSIONERS’ ITEMS Commissioner Batavick proposed enhancing public transparency and engagement by disseminating City budget updates through news outlets or radio. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Mast/Way to adjourn this meeting at 5:00 p.m. Motion passed: ayes – 6, noes – 0, abstain – 0, absent – 1 (Dorsey). Respectfully submitted, Amanda Guerrero, Commission Secretary City of La Quinta, California 7 8 FINANCIAL ADVISORY COMMISSION Page 1 of 3 MAY 7, 2025 MINUTES FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, MAY 7, 2025 CALL TO ORDER 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 (joined the meeting at 3:52 p.m.), Lee, Way and Chair Dorsey ABSENT: Commissioner Mast PLEDGE OF ALLEGIANCE Commissioner Lee 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. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JANUARY 31, 2025 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED FEBRUARY 28, 2025 MOTION – A motion was made and seconded by Commissioners Batavick/Anderson to approve the Consent Calendar as presented. Motion passed: ayes – 5, noes – 0, abstain – 0, absent – 2 (Kiehl and Mast). BUSINESS SESSION 1. APPROVE FISCAL YEAR 2025/26 MEETING SCHEDULE Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission discussed rescheduling the September 3, 2025, regular meeting to September 11, 2025, special meeting due to scheduling conflicts. CONSENT CALENDAR ITEM NO. 2 9 FINANCIAL ADVISORY COMMISSION Page 2 of 3 MAY 7, 2025 MINUTES MOTION – A motion was made and seconded by Commissioners Way/Lee to approve the amended fiscal year 2025/26 Commission meeting schedule. Motion passed: ayes – 5, noes – 0, abstain – 0, absent – 2 (Kiehl and Mast). STUDY SESSION 1. DISCUSS FISCAL YEAR 2025/26 INVESTMENT POLICY Principal Management Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission discussed the City’s investments rating category of “AA” or better which is more restrictive than the State to better mitigate risk; and to correct minor formatting inconsistencies in Appendix C. The Commission expressed general support for the minor updates and revisions clarifying the Investment Policy. COMMISSIONER KIEHL JOINED THE MEETING AT 3:52 P.M. 2. DISCUSS FISCAL YEAR 2025/26 PRELIMINARY PROPOSED BUDGET Finance Director Martinez presented the staff report, which is on file in the Finance Department. The Commission discussed investment interest earnings; key revenue categories; correcting the FY 2025/26 budget summary label on page 53; Measure G contributions; the comprehensive study of the Master Fee Schedule; expanded Wellness Center operations; federal funding; public safety costs, staffing, service models, and camera system benefits; potential power infrastructure improvement costs; rising insurance premiums; temporary staffing and medical expenses; use of Measure G reserves; the City’s Recognized Obligation Payment Schedule (ROPS) repayment timeline and future reallocation of Redevelopment Property Tax Trust Fund (RPTTF) fund once all redevelopment agencies debt is paid off. The Commission commended staff for prudent and conservative budget management. The Commission expressed general support for the FY 2025/26 proposed budget as presented. DEPARTMENTAL REPORTS 1.FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Staff provided updates on current and upcoming Finance Department projects including the ongoing audit for FY 2023/24 Annual Comprehensive Financial Report which is in 10 FINANCIAL ADVISORY COMMISSION Page 3 of 3 MAY 7, 2025 MINUTES final stages of completion; scheduling additional meetings for the Financial Projections Task Force; upcoming Boards and Commissions vacancies; and Highway 111 Corridor Specific Plan project expenditures. The Commission discussed the timeline and scheduling for the upcoming Highway 111 pavement improvements; the ribbon cutting unveiling the new Dune Palms Road Bridge; anticipated Imperial Irrigation District (IID) substation infrastructure improvements costs and options; and the newly formed Coachella Valley Powers Agency, an independent public agency for Riverside County and the Coachella Valley giving stakeholders the authority to address electrical infrastructure needs and services. 2. FOURTH QUARTER 2024 (OCTOBER-DECEMBER) SALES TAX UPDATE Staff provided a general overview of the fourth quarter sales tax update. The Commission discussed commercial vacancies rate in La Quinta is 5% compared to 12% average valley-wide; and potential impacts of the Highway 111 Corridor project on local businesses and sales tax performance. COMMISSIONERS’ ITEMS Commissioner Kiehl commended Commissioner Way for her presentation at the 2025 State of the Fourth District Coachella Valley Economic Update held By Riverside County Supervisor Perez on April 17, 2025, at the Fantasy Springs Resort Casino in Indio. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Way/Kiehl to adjourn this meeting at 5:23 p.m. Motion passed: ayes – 6, noes – 0, abstain – 0, absent – 1 (Mast). Respectfully submitted, Amanda Guerrero, Commission Secretary City of La Quinta, California 11 12 City of La Quinta FINANCIAL ADVISORY COMISSION MEETING: June 4, 2025 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH 31, 2025 RECOMMENDATION Receive and file revenue and expenditure report dated March 31, 2025. EXECUTIVE SUMMARY The report summarizes the City’s year-to-date (YTD) and month-to-date (MTD) revenues and expenditures for March 2025 (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 Budget – represents revenue and expenditure budgets the Council adopted in June 2024 for fiscal year 2024/25. Current Total Budget – represents original adopted budgets plus any Council approved budget amendments from throughout the year, including any carryovers from fiscal year 2023/24. 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 YTD. CONSENT CALENDAR ITEM NO. 3 13 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. 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 March 31, 2025 MTD YTD YTD Percent of Budget YTD YTD Percent of Budget General Fund (GF) 5,677,363$ 51,763,122$ 59.02% 45,842,140$ 57.88% All Funds 14,883,951$ 83,000,116$ 38.18% 93,259,886$ 46.56% MTD YTD YTD Percent of Budget YTD YTD Percent of Budget General Fund 4,722,351$ 41,141,639$ 38.77% 40,462,538$ 39.81% Payroll (GF)904,209$ 8,562,291$ 60.60% 8,798,865$ 65.71% All Funds 8,875,975$ 91,433,627$ 37.99% 93,447,452$ 40.04% March 2025 Expenditures Comparison to 2024 March 2025 Revenues Comparison to 2024 General Fund Non-General Fund Transient Occupancy (Hotel) Tax 1,758,838$ Highway Bridge Program (Dune Palms Reimbursement) 5,542,732$ Measure G Sales Tax 1,496,785$ County Government Revenue -Library/Museum 1,210,104$ Sales Tax 1,214,437$ SilverRock Green Fees 482,753$ Franchise Taxes - Burrtec 472,749$ Gas Tax 150,431$ Zoning Change Mitigation Fees 89,173$ County Sales Tax (Measure A)147,572$ General Fund Non-General Fund Sheriff Contract 1,302,154$ Debt Service Payments- Successor Agency Bonds(1)1,630,645$ Marketing & Tourism Promotions 106,684$ Capital Improvement Program - Construction(2)907,350$ Professional Services (Elections)105,902$ Affordable Housing Project Development 207,003$ Parks Landscape Maintenance Contract 93,482$ SilverRock Maintenance 191,118$ Golf Tournament 65,828$ Lighting & Landscape Maintenance Contract 130,125$ . Top Five Revenue/Income Sources for March Top Five Expenditures/Outlays for March (1)Interest and principal payments for redevelopment bonds, funded by dedicated Redevelopment Property Tax Trust Fund (RPTTF) revenue. (2)CIP Construction: Dune Palms Bridge and pavement management plan. 14 Page 1 of 3 City Council Month Expense & Revenue Reports Group Summary For Fiscal: 2024/25 Period Ending: 03/31/2025 Fiscal Activity Variance Favorable (Unfavorable) Period Activity Current Total Budget Original Total Budget Percent Used 51,763,121.665,677,362.5482,714,300.00 87,707,804.00 -35,944,682.34 59.02% -12,424.410.0030,000.00 30,000.00 -42,424.41 41.41% 1,861,853.42150,430.862,589,000.00 2,589,000.00 -727,146.58 71.91% 1,867,353.221,210,391.973,143,000.00 3,143,000.00 -1,275,646.78 59.41% -227.570.005,000.00 5,000.00 -5,227.57 4.55% -2.690.00190,000.00 190,000.00 -190,002.69 0.00% 143,924.538,333.33103,000.00 103,000.00 40,924.53 139.73% 3,073,361.470.004,000,500.00 4,000,500.00 -927,138.53 76.82% 40,038.2217,549.9480,000.00 80,000.00 -39,961.78 50.05% 1,099,389.64147,572.422,025,000.00 2,025,000.00 -925,610.36 54.29% 0.000.0013,000.00 13,000.00 -13,000.00 0.00% 0.000.005,500.00 5,500.00 -5,500.00 0.00% 12,995.221,416.0021,000.00 21,000.00 -8,004.78 61.88% 5,170,923.62748.5220,260,000.00 20,260,000.00 -15,089,076.38 25.52% 25,034.8312,150.1054,500.00 54,500.00 -29,465.17 45.94% -232.910.0013,820.00 13,820.00 -14,052.91 1.69% 907,779.0395,870.811,452,000.00 1,452,000.00 -544,220.97 62.52% -5,289.320.0060,000.00 60,000.00 -65,289.32 8.82% 3,247.991,250.0040,000.00 40,000.00 -36,752.01 8.12% 79,607.3624,276.4418,000.00 18,000.00 61,607.36 442.26% 374,053.6736,081.00540,000.00 540,000.00 -165,946.33 69.27% 96,991.5218,954.00253,000.00 253,000.00 -156,008.48 38.34% 68,201.4311,070.00103,000.00 103,000.00 -34,798.57 66.21% 18,659.003,573.0050,000.00 50,000.00 -31,341.00 37.32% 43,612.448,604.00105,000.00 105,000.00 -61,387.56 41.54% 20,230.263,321.0053,000.00 53,000.00 -32,769.74 38.17% 25,334.062,817.0047,000.00 47,000.00 -21,665.94 53.90% 119,422.335,813.40158,000.00 158,000.00 -38,577.67 75.58% -1.100.001,500.00 1,500.00 -1,501.10 0.07% 6,846,743.695,542,732.4927,218,109.00 82,703,042.06 -75,856,298.37 8.28% 1,114,868.02373,750.001,705,000.00 1,705,000.00 -590,131.98 65.39% 2,355,266.28775,563.962,276,708.00 2,276,708.00 78,558.28 103.45% 745,414.13250,000.00500,000.00 500,000.00 245,414.13 149.08% 680,507.520.001,363,230.00 1,363,230.00 -682,722.48 49.92% 4,061,620.69556,402.475,484,500.00 5,484,500.00 -1,422,879.31 74.06% 4,911.640.007,000.00 7,000.00 -2,088.36 70.17% 100,199.8927,847.0640,000.00 40,000.00 60,199.89 250.50% Fund 101 - GENERAL FUND 105 - DISASTER RECOVERY FUND 201 - GAS TAX FUND 202 - LIBRARY & MUSEUM FUND 203 - PUBLIC SAFETY FUND (MEASURE G) 210 - FEDERAL ASSISTANCE FUND 212 - SLESA (COPS) FUND 215 - LIGHTING & LANDSCAPING FUND 221 - AB 939 - CALRECYCLE FUND 223 - MEASURE A FUND 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG) 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP) 230 - CASp FUND, AB 1379 231 - SUCCESSOR AGCY PA 1 RORF 235 - SO COAST AIR QUALITY FUND 237 - SUCCESSOR AGCY PA 1 ADMIN 241 - HOUSING AUTHORITY 243 - RDA LOW-MOD HOUSING FUND 247 - ECONOMIC DEVELOPMENT FUND 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) 250 - TRANSPORTATION DIF FUND 251 - PARKS & REC DIF FUND 252 - CIVIC CENTER DIF FUND 253 - LIBRARY DEVELOPMENT DIF 254 - COMMUNITY & CULTURAL CENTERS DIF 257 - FIRE PROTECTION DIF 259 - MAINTENANCE FACILITIES DIF FUND 270 - ART IN PUBLIC PLACES FUND 310 - LQ FINANCE AUTHORITY DEBT SERVICE 401 - CAPITAL IMPROVEMENT PROGRAMS 501 - FACILITY & FLEET REPLACEMENT 502 - INFORMATION TECHNOLOGY 503 - PARK EQUIP & FACILITY FUND 504 - INSURANCE FUND 601 - SILVERROCK RESORT 760 - SUPPLEMENTAL PENSION PLAN 761 - CERBT OPEB TRUST 762 - PARS PENSION TRUST 293,627.40-79,931.00200,000.00 200,000.00 93,627.40 146.81% Report Total:14,883,951.31 83,000,116.18156,922,667.00 217,401,104.06 -134,400,987.88 38.18% ATTACHMENT 1 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. 15 Page 2 of 3 City Council Month Expense & Revenue Reports Group Summary For Fiscal: 2024/25 Period Ending: 03/31/2025 Fiscal Activity Variance Favorable (Unfavorable) Period Activity Current Total Budget Original Total Budget Percent Used 41,141,639.384,722,350.8483,331,665.00 106,123,184.50 64,981,545.12 38.77% 4,993,504.000.000.00 4,993,504.00 0.00 100.00% 2,004,506.07236,084.623,443,100.00 5,749,202.40 3,744,696.33 34.87% 1,122,261.6432,046.032,555,615.00 5,010,359.92 3,888,098.28 22.40% 0.000.000.00 20,375.54 20,375.54 0.00% 0.000.00198,500.00 198,500.00 198,500.00 0.00% 93,195.831,335.77100,000.00 100,000.00 6,804.17 93.20% 2,723,964.00295,035.353,957,700.00 4,532,700.00 1,808,736.00 60.10% 0.000.000.00 262,685.00 262,685.00 0.00% 66,821.158,250.00200,000.00 200,000.00 133,178.85 33.41% 149,016.820.002,335,000.00 4,456,986.26 4,307,969.44 3.34% 11,373.330.0012,000.00 12,000.00 626.67 94.78% 4,204.200.005,000.00 5,000.00 795.80 84.08% 822.400.005,500.00 5,500.00 4,677.60 14.95% 16,681,324.791,630,644.824,452,755.00 4,452,755.00 -12,228,569.79 374.63% 13,987.889,784.9840,000.00 40,000.00 26,012.12 34.97% 1,600.000.0010,000.00 10,000.00 8,400.00 16.00% 1,141,898.27130,560.111,715,440.00 1,965,440.00 823,541.73 58.10% 300,800.000.00250,000.00 350,000.00 49,200.00 85.94% 4,991.53330.0431,500.00 31,500.00 26,508.47 15.85% 746,407.31207,003.00250,000.00 657,003.00 -89,404.31 113.61% 400,453.500.001,579,109.00 2,837,567.34 2,437,113.84 14.11% 62,573.440.000.00 843,615.24 781,041.80 7.42% 0.000.000.00 249,925.00 249,925.00 0.00% 5,617.000.0015,000.00 15,000.00 9,383.00 37.45% 0.000.00500,000.00 625,000.00 625,000.00 0.00% 0.000.00100,000.00 280,000.00 280,000.00 0.00% 98,301.9418,500.00233,000.00 741,798.97 643,497.03 13.25% 0.000.001,500.00 1,500.00 1,500.00 0.00% 10,791,789.52967,208.0027,218,109.00 80,726,565.86 69,934,776.34 13.37% 1,423,330.1157,997.031,628,750.00 2,665,363.55 1,242,033.44 53.40% 1,689,201.5482,279.063,217,945.00 3,367,945.00 1,678,743.46 50.16% 683,188.7133,247.692,000,000.00 2,700,000.00 2,016,811.29 25.30% 1,046,254.001,096.051,058,000.00 1,058,000.00 11,746.00 98.89% 3,991,118.23438,983.905,365,000.00 5,365,000.00 1,373,881.77 74.39% 12,832.860.0012,850.00 12,850.00 17.14 99.87% 1,184.34364.471,500.00 1,500.00 315.66 78.96% Fund 101 - GENERAL FUND 105 - DISASTER RECOVERY FUND 201 - GAS TAX FUND 202 - LIBRARY & MUSEUM FUND 203 - PUBLIC SAFETY FUND (MEASURE G) 210 - FEDERAL ASSISTANCE FUND 212 - SLESA (COPS) FUND 215 - LIGHTING & LANDSCAPING FUND 220 - QUIMBY FUND 221 - AB 939 - CALRECYCLE FUND 223 - MEASURE A FUND 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG) 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP) 230 - CASp FUND, AB 1379 231 - SUCCESSOR AGCY PA 1 RORF 235 - SO COAST AIR QUALITY FUND 237 - SUCCESSOR AGCY PA 1 ADMIN 241 - HOUSING AUTHORITY 243 - RDA LOW-MOD HOUSING FUND 247 - ECONOMIC DEVELOPMENT FUND 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) 250 - TRANSPORTATION DIF FUND 251 - PARKS & REC DIF FUND 252 - CIVIC CENTER DIF FUND 253 - LIBRARY DEVELOPMENT DIF 254 - COMMUNITY & CULTURAL CENTERS DIF 259 - MAINTENANCE FACILITIES DIF FUND 270 - ART IN PUBLIC PLACES FUND 310 - LQ FINANCE AUTHORITY DEBT SERVICE 401 - CAPITAL IMPROVEMENT PROGRAMS 501 - FACILITY & FLEET REPLACEMENT 502 - INFORMATION TECHNOLOGY 503 - PARK EQUIP & FACILITY FUND 504 - INSURANCE FUND 601 - SILVERROCK RESORT 760 - SUPPLEMENTAL PENSION PLAN 761 - CERBT OPEB TRUST 762 - PARS PENSION TRUST 25,462.892,873.6130,000.00 30,000.00 4,537.11 84.88% Report Total:8,875,975.37 91,433,626.68145,854,538.00 240,698,326.58 149,264,699.90 37.99% 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. 16 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 Housing Authority which is to promote and provide quality affordable housing. 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% for Housing) and housing programs,. 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)For all pension-related benefits and unfunded liabilities. Fund Descriptions Page 3 of 3 17 18 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: June 4, 2025 STAFF REPORT BUSINESS SESSION ITEM NO. 1 AGENDA TITLE: RECOMMEND COUNCIL APPROVAL OF FISCAL YEAR 2025/26 INVESTMENT POLICY RECOMMENDATION Recommend Council approval of the fiscal year 2025/26 Investment Policy. EXECUTIVE SUMMARY As part of their work plan, and as stated in Section XVII of the City’s Investment Policy (the Policy), the Financial Advisory Commission (FAC) reviews the Policy annually. Recommended revisions are also reviewed by the City Manager and City Attorney. City Council adopts the Policy annually, after review by the FAC. FISCAL IMPACT - 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 recently 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 fiscal year 2024/25 that impacted the City’s policy or would require updates. Therefore, staff recommends only operational changes to the current Policy, some of which originated with the CMTA review committee. The proposed updates remain within the legal bounds of California Government Code (the Code), protect the safety and liquidity of the City’s investment 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 language from the Code regarding forward settlement dates. 19 20 Section VII: Minor edit to decouple the annual approval of the investment policy from the annual granting of investment authority to the Treasurer. Section IX: Clarifications to the type of documentation the City might use to verify the credentials of broker/dealers as compared to advisors or financial institutions. Section X Permissible Deposits and Investments: Clarified that while the policy generally allows for investments as permitted by the Code, our policy may at times be more restrictive. Reclassified bank (non-negotiable) CDs under the ‘Checking, Savings, Sweep Accounts’ category, as negotiable CDs can be traded on the secondary market. Section XVI Review of Investment Portfolio: Additional language specifying how frequently staff monitors the portfolio, along with available market information, for potential issues with securities falling out of compliance with the policy. ALTERNATIVES 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. Rosemary Hallick, Principal Management Analyst Claudia Martinez, Finance Director Prepared by: Approved by: Attachments: 1. Draft Investment Policy for Fiscal Year 2025/26 (red-lined) 2. Recent CMTA Certification Fiscal Year 2024/20252025/2026 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 Topic 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 ATTACHMENT 1 21 Page 1 of 27 CITY OF LA QUINTA Investment Policy Fiscal Year 2024/20252025/2026 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). 22 Page 2 of 27 City of La Quinta Statement of Investment Policy July 1, 2024 2025 through June 30, 2025 2026 Adopted by the City Council on June 1817, 20242025 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 23 Page 3 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. IV. 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 total amount 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: 24 Page 4 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 or target 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. 25 Page 5 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 occurrence 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. In no case shall a forward settlement date exceed 45 days from the time of investment. 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 State Code §53607 and the City Council's annual adoption of the Investment Policy.approval. 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 26 Page 6 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 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). 27 Page 7 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 of approved 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, FINRA reporting, 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, as applicable. 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 collateralization in public monies. X. 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 , (which in some instances may be more restrictive than State Code). The State Code can be directly referenced at https://leginfo.legislature.ca.gov/ 28 Page 8 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. The City may also purchase non-negotiable certificates of deposits, provided that either the combined balances at any banking institution do not exceed FDIC limits or funds are collateralized as noted below.  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. Negotiable 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 GSE'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 GSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal Home Loan Banks (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 2024/25, the maximum face amount per issuer is $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. 29 Page 9 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 by LAIF. Money Market Mutual Funds – As authorized in §53601(l), 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 the three 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 "AA" 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 whichever is less. Professionally Managed Account(s) – The City Treasurer may place 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 30 Page 10 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. XI. INVESTMENT POOLS 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), CalTrust, or California Class); 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(l) and §53601(p). XII. PAYMENT AND CUSTODY 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. 31 Page 11 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 32 Page 12 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." XV. REPORTING STANDARDS 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 at least 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; 33 Page 13 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. XVI. REVIEW OF INVESTMENT PORTFOLIO 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 formal quarterly review of the portfolio will be conducted to identify any securities which may have fallen out of compliance. Additionally, staff will monitor monthly statements, financial news, market updates, custodial bank corporate actions notices and/or any other information available that may communicate current ratings or credit quality of investments. Any major incidences of noncompliance identified during such review will be reported to the Financial Advisory Commission for confirmation of staff course of action. XVII. FINANCIAL ADVISORY COMMISSION - CITY OF LA QUINTA 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. XVIII. 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. 34 Page 14 of 27 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. 2.70.40 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. APPENDIX A 35 Page 15 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. 36 Page 16 of 27 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) 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 APPENDIX B 37 Page 17 of 27 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) 38 Page 18 of 27 SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Responsible Parties Develop and recommend modifications to the City's formal Investment Policy City Treasurer, Principal Management Analyst, and Financial Advisory Commission Review City's Investment Policy and recommend City Council action City Manager and City Attorney Adopt formal Investment Policy City Council Implement formal Investment Policy City Treasurer Review financial institutions and select investments City Treasurer or Principal Management Analyst Acknowledge investment selections City Manager or his/her designee Execute investment transactions City Manager, City Treasurer, or Principal Management Analyst Confirm wires Finance Manager, Senior Accountant, or Administrative Technician Record investment transactions in City's accounting records Finance Manager or Senior Accountant Investment certification- 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 Reconcile investment records to treasurer's report of investments City Treasurer, Finance Manager or Principal Management Analyst Security of investments at City Finance Manager or Administrative Technician Security of investments outside of City Third Party Custodian Review internal control procedures External Auditor APPENDIX C 39 Page 19 of 27 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 -Sunwest Bank, Irvine, CA (Banking Services - Dune Palms Mobile Estates) -BMO Commercial Bank -Stifel -U.S. Bank Trust Company, N.A. -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(1) -U.S. Bank Trust Company, NA(2) -California Employers' Retirement Benefits Trust (CERBT)/CalPERS -Public Agency Retirement Services (PARS) (1)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 the following bonds: 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 and the CAMP pool.. APPENDIX D 40 Page 20 of 27 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 another or APPENDIX E 41 Page 21 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 42 Page 22 of 27 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 as used in municipal investing or the financial sector in general. The glossary was adopted from the California Municipal Treasurers Association, therefore all terms appearing in this glossary may not be used in the policy.. 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. BID: 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 (CD): 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. APPENDIX F 43 Page 23 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. 44 Page 24 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 (FOMC): 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 45 Page 25 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 ORGANIZATION): 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. OFFER: 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. 46 Page 26 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 RevRepo): 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. 47 Page 27 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 10 years. 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. 48 News Release FOR IMMEDIATE RELEASE Date: December 15, 2024 For more information contact: Shaun L. Farrell, Chairperson CMTA Investment Policy Certification Phone: 209-712-0428 Email: sfarrell@cityofgalt.org (Sacramento, California) – The California Municipal Treasurers Association (CMTA) Investment Policy Certification has been granted to the City of La Quinta. This Investment Policy Certification recognizes that CMTA has validated that the City of La Quinta’s Investment Policy adheres with the State of California Government Code and meets the program requirements within 18 different topics areas deemed to be best practices for investment policies. Those topics include: Scope, Prudence, Objective, Delegation of Authority, Ethics and Conflicts of Interest, Authorized Financial Dealers and Institutions, Authorized and Suitable Investments, Review of Investment Portfolio, Investment Pools/Mutual Funds, Collateralization, Safekeeping and Custody, Diversification, Maximum Maturities, Internal Controls, Performance Standards, Reporting, Investment Policy Adoption and Glossary. Once a policy is received by CMTA, it is independently evaluated using a scoring matrix by three separate CMTA professionals. When the agency receives a passing score, the Investment Policy earns the ‘Certified’ distinction. To enhance the municipal treasurer’s role, CMTA has developed a number of certification programs to reflect best practices and increase an individual’s knowledge of fixed income instruments. The Investment Policy Certification program began in 2012 with the support from the California Debt and Investment Advisory Commission. It is open to all government agencies within the State of California including special districts, cities and counties. CMTA was founded in 1958 by a handful of Municipal Treasurers from both Northern and Southern California whose primary interest was to improve their function in local Government. CMTA is a professional organization governed by active public officials who are representatives of their own local governmental units. ATTACHMENT 2 49 California Municipal Treasurers Association Investment Policy Certification Issued on 12/15/2024 City of La Quinta The California Municipal Treasurers Association certifies that the investment policy of the City of La Quinta complies with the current State statutes governing the investment practices of local government entities located within the State of California. President 12/15/2024 Date 50 City of La Quinta FINANCIAL ADVISORY COMMISSION SPECIAL MEETING: June 4, 2025 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2024 RECOMMENDATION Receive and file the Annual Comprehensive Financial Report for the year ended June 30, 2024. EXECUTIVE SUMMARY  California cities must obtain an annual audit of their financial statements by an independent auditor at the close of each fiscal year.  The annual audit produces the Annual Comprehensive Financial Report (ACFR) (Exhibit A), which was issued on May 15, 2025.  The independent auditors rendered an unmodified (“clean”) opinion, which is the most favorable conclusion.  The ACFR will be presented to the City Council on June 17, 2025. FISCAL IMPACT - None BACKGROUND/ANALYSIS At the end of each fiscal year, the City’s financial records are audited by an independent audit firm pursuant to California law. The results (including City background information, statistical data, and detailed financial reports) are compiled and presented in the ACFR. In the independent auditors’ report (located at the front of the financial section of the ACFR), Lance, Soll & Lunghard LLP (LSL) issued an unmodified opinion on the City’s financial statements for the year ended June 30, 2024, which is the most favorable conclusion. The independent audit involved examining evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and estimates made by management, and evaluating the overall financial statement presentation. BUSINESS SESSION ITEM NO. 2 51 Attachment 1 provides a summary of the ACFR which is in Exhibit A. Attachment 2 provides a summary of Unrestricted Funds. The City’s ACFR can be found in the Finance section on the City’s website. While the City’s financial statements were presented fairly in all material respects, a significant deficiency/noncompliance was identified due to the delayed submission of the City’s Single Audit report, which resulted from delays in the prior year’s audit completion. The City acknowledges the importance of timely submission and has implemented an accelerated timeline for completing future reports, along with improved coordination efforts with the external audit team. As in previous years, the ACFR will be submitted to the Government Finance Officers Association (GFOA) award program for excellence in financial reporting. A Single Audit for fiscal year 2023/24 – a separate audit requirement under Federal law for entities that spend $750,000 or more in federal funds during a fiscal year, was issued on May 17, 2025. ALTERNATIVES The ACFR and audit are required by State law, therefore, no alternatives are recommended. Prepared by: Claudia Martinez, Finance Director/City Treasurer Approved by: Jon McMillen, City Manager Attachments: 1. 2023/24 Annual Comprehensive Financial Report Summary 2. 2023/24 Unrestricted Funds Summary 52 Fiscal Year 2023/24 Annual Comprehensive Financial Report (ACFR) Summary Summary of ACFR Contents The fiscal year (FY) 2023/24 Annual Comprehensive Financial Report (ACFR) (Exhibit A) contains numerous comprehensive financial reports pertaining to all aspects of the City’s finances and includes financial statements for all City funds (general, special revenue, housing, capital project, internal service, and other fund types). The ACFR also contains information regarding the City’s accounting methods and procedures, and the results of the independent audit. Financial information is conveyed both by major fund type and in a comprehensive manner; thus, the information is somewhat complex to interpret. Because of this, specific detailed information regarding the General Fund year-end budget results for FY 2023/24 was presented separately at the February 18, 2025, Council meeting. The Management Discussion and Analysis section provides an overview and analysis of the financial statements, which is useful when reading through the ACFR. In addition, the Notes to the Basic Financial Statements provide a written explanation of accounting methods and year-over-year changes. The Statistical Section presents a ten-year comparison of City financial, economic, and demographic trends. Responsibility for both the accuracy and the completeness of all disclosures rests with the City of La Quinta. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of City operations. The ACFR was prepared in conformance with Generally Accepted Accounting Principles (GAAP). The City’s financial reporting is based upon all Governmental Accounting Standards Board (GASB) pronouncements; these pronouncements are the most authoritative source of governmental GAAP. LSL, LLP, has issued an unmodified (“clean”) opinion on the City’s financial statements for the year ended June 30, 2024, which is the most favorable conclusion. While the City’s financial statements were presented fairly in all material respects, a significant deficiency/noncompliance was identified due to the delayed submission of the City’s Single Audit report, which resulted from delays in the prior year’s audit completion. The City acknowledges the importance of timely submission and has implemented an accelerated timeline for completing future reports, along with improved coordination efforts with the external audit team. We believe that the ACFR meets the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting Program requirements and have submitted it to determine eligibility for another certificate. The City has previously received this prestigious award for the past twenty-seven years. ATTACHMENT 1 53 Significant Changes and Financial Highlights Governmental Revenues and Expenses Governmental Activities include thirty-one (31) individual governmental funds. There are four (4) major governmental funds: the General Fund, one Capital Improvement capital project fund, one Housing Authority special revenue fund, and one Disaster Recovery special revenue fund. Data from the other twenty-seven (27) governmental funds are combined into a single, aggregate presentation. Key Highlights:  General Fund overall fund balance increased by approximately $23.8 million when compared to the ending balance in FY 2022/23. This was mostly attributed to revenue exceeding budget projections, coupled with expenditure savings.  General Fund Reserves are 100% funded to established target amounts for FY 2023/24 representing a combined balance of $45 million.  At the end of FY 2023/24, the City had positive balances in all three categories of Net Position (Net Investment in Capital Assets, Restricted, and Unrestricted) for the governmental and business-type activities.  Governmental revenues increased over the prior fiscal year with the major categories being use of money and property, capital grants and contributions, and property taxes, offset by decreases in charges for services and other taxes.  A majority of General Fund revenues experienced positive variances when compared to the final budget.  Actual expenses were $42.7 million lower than the final budget, of which $900,000 was carried over into FY 2024/25 for continuing appropriations related to operations. Funds not being carried over are recognized as Unassigned Fund Balance in the General Fund. Capital Improvement Projects (CIP) revenue commitments totaling $21.7 million are reflected in Assigned reserves and operational carryovers are noted in Committed reserves. Governmental Fund Balances The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances. Such information is useful in assessing the City's financing requirements. In particular, Unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The Unassigned General Fund balance comprised $65,216,616, or 31%, of the total $209,785,707 balance and included savings from total final FY 2023/24 General Fund budgeted expenditures including transfers and multi-year capital project carryovers. As of the end of FY 2023/24, the City's total governmental funds reported combined ending fund balances of $269,901,894 and General Fund balances of $209,785,707 as follows: 54 2023/24 Governmental Fund Balances When compared to FY 2022/23, total governmental fund balance increased by $30,081,926 and total General Fund balance increased by $23,808,199. 2022/23 Governmental Fund Balances General Fund Balances A year-over-year decrease of $2,432,000 in Nonspendable is mainly attributed to the FY 2023/24 Redevelopment Agency (RDA) loan repayment of $2,750,000 offset by interest earnings of $273,000 resulting in a net decrease of $2,477,000 in Due from Other Governments. The outstanding loan balance to the RDA of $21,405,000 is recognized as 80% in the General Fund and 20% in the Housing Authority Fund. Additional information on the loan repayment can be found in Note 17 of the financial statements. Restricted reserves are limited to funds held in a Section 115 Pension Trust, set aside to fund the City’s pension obligations. The trust was initially established in FY 2018/19 with a deposit of $6,540,000, followed by an additional $3,460,000 in FY 2019/20. In FY 2022/23, a one-time discretionary payment of $5,000,000 was made to CalPERS to reduce the City’s unfunded pension liabilities, utilizing funds from the trust. The increase in FY 2023/24 was primarily driven by interest earnings within the trust. All Other Funds fund balance increased by $2,308,000 and represents totals for the Housing Fund and other Restricted funds. Committed reserves decreased by approximately $1,700,000, primarily due to a reduction in operational carryovers. In the prior year, $2,600,000 was carried over to support ongoing operations, whereas only $900,000 was required in the current year. The lower carryover amount reflects that additional operational support was not needed this year, indicating improved budget alignment and operational efficiency. Category General Fund Percent All Other Funds Percent Total Funds Percent Nonspendable 22,698,006$ 11%500$ 0.001% 22,698,506$ 8% Restricted 5,666,575 3% 64,214,488 107% 69,881,063 26% Committed 45,900,000 22%- 0% 45,900,000 17% Assigned 70,304,510 34%- 0% 70,304,510 26% Unassigned 65,216,616 31% (4,098,801) -7% 61,117,815 23% TOTAL 209,785,707$ 100% 60,116,187$ 100% 269,901,894$ 100% Category General Fund Percent All Other Funds Percent Total Funds Percent Nonspendable 25,130,438$ 14%468$ 0.001% 25,130,906$ 10% Restricted 5,317,487 3% 61,906,132 115% 67,223,619 28% Committed 47,600,009 26%- 0% 47,600,009 20% Assigned 63,824,533 34%- 0% 63,824,533 27% Unassigned 44,105,041 24% (8,064,140) -15% 36,040,901 15% TOTAL 185,977,508$ 100% 53,842,460$ 100% 239,819,968$ 100% 55 An increase of $6,480,000 in assigned reserves was due to Measure G sales tax reserve of $3,771,000 and $3,666,000 in the fire services trust. Outstanding Debt Total governmental activities debt decreased by $143,725 from $1,703,426 to $1,559,701. This decrease is attributed to a reduction of $213,365 in subscription IT liabilities offset by an increase of $38,684 in leases and $31,507 in compensated absences. Additional information on long-term debt can be found in Note 5 of the financial statements. Defined Benefit Pension Plan and Section 115 Trust As of June 30, 2024, the City reported a liability of $2,699,409 for its proportionate share of the collective net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022. Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports and additional information on the City’s pension plan can be found in Note 9. As of June 30, 2024, the Section 115 Pension Trust had a balance of $5,666,575, additional information can be found in Note 12. The trust sets aside monies to fund the City’s pension obligations. Contributions to the trust are irrevocable and assets are protected from creditors. The purpose of the trust is to address the City’s pension obligations by accumulating assets to reduce the net pension liability. However, assets in the trust are recorded as restricted fund balance until they are transferred to the pension plan (CalPERS). Other Post-Employment Benefit Plan (OPEB) In contrast to the Net Pension Liability, the OPEB Trust established to fund retiree health benefits, had a balance of $1,856,315 which decreases the OPEB liability of $1,522,159 and is reported as an asset balance of $334,156. Additional information on OPEB can be found in Note 11 of the financial statements. Major Capital Improvements The Capital Improvement Fund is primarily used to record the expenditures for capital projects. The fund had forty-seven (47) active Capital Improvement Projects during FY 2023/24. The five most active projects were:  Dune Palms Bridge Improvements ($11,475,000)  Avenue 50 Pavement Rehabilitation ($2,605,000)  Fred Waring Drive Pavement Rehabilitation ($2,444,000)  Citywide Pavement Management Plan ($1,830,000)  Citywide Landscape Renovation Improvements ($1,290,000) Debt Type:2023 2024 Leases 53,111$ 91,795$ Financed Purchases 551 - Compensated Absences 1,154,090 1,185,597 Subscription IT liabilities 495,674 282,309 TOTAL 1,703,426$ 1,559,701$ Governmental Activities 56 These projects, along with others, leveraged State or Federal grant funds or were significantly supported with Measure G sales tax revenues. Long-term Financial Sustainability The City ensures that its long-range goals are met through a variety of Boards and Commissions. Each is comprised of Council-appointed residents, may include a City Council representative, and are supported by City staff. In addition, the City has adopted various financial policies and practices with the goal of sustaining a fiscally resilient government over the long-term, as well as increasing transparency and encouraging public engagement. The City has taken a proactive approach to rising pension and public safety costs by building its reserve categories and paying down the City’s pension obligations. The City also continues to collaborate with Riverside County and other regional cities on police services to identify long-term savings. As of June 30, 2024, all four of the City’s reserve categories (Cash Flow Reserve, Natural Disaster, Economic Disaster, and Capital Replacement) are fully funded to policy targets. The City Council has a history of implementing strategic measures to ensure the long-term fiscal sustainability of the City. These measures include adopting a structurally balanced budget, funding long-term needs, and maintaining robust reserve levels. As a result, the City has been able to maintain essential services despite economic fluctuations and is well-prepared to face future financial challenges. 57 ATTACHMENT 2 ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR 2023/24 – UNRESTRICTED FUNDS SUMMARY The Annual Comprehensive Financial Report (ACFR) is a set of financial statements for a state, municipality or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB). GASB is a private non-governmental organization, an arm of the Financial Accounting Foundation, that creates accounting reporting standards, or generally accepted accounting principles (GAAP), for state and local governments in the United States, i.e. GASB sets the standards governing the content of an ACFR. The ACFR must be audited by an independent auditor using generally accepted government auditing standards. GASB Concepts Statement No. 34 requires the net assets of a government to be reported in three (3) categories: 1) invested in capital assets net of related debt, 2) restricted, and 3) unrestricted. As shown in the chart below, the City’s Net Position (total assets and deferred outflows) is stated on page 5 of the Management Discussion and Analysis or MD&A of the fiscal year (FY) 2023/24 ACFR for La Quinta, and further described in detail on page 9. Per ACFR reporting guidelines, in particular GASB No. 34, the three (3) categories of a government’s net assets are defined as follows: Capital Assets category reflects investments in capital assets (e.g., land, buildings; machinery, equipment), net of related debt, which the City uses to provide services to citizens; consequently, these assets are not available for future spending. City capital assets totaling $592,061,273 or 65% of the city’s total $905,004,075 Net Position (total assets and deferred outflows) include: 129 miles of streets and 121 miles of sidewalks 18 parks with amenities that include swimming pools, pickleball and tennis courts; X Park; soccer fields and softball/baseball diamonds; dog parks; playground equipment; and more. 22 city-owned buildings Capital Assets 592,061,273$ Restricted 70,215,219$ Unrestricted 242,727,583$ TOTAL NET POSITION 905,004,075$ Net Position Summary FY 2023/24 58 83.6 miles of bike paths 4,800-plus street signs 51 traffic light signals, 111 public safety cameras 582 catch basins Restricted category is comprised of funds earmarked for a specific purpose; these restrictions are imposed on the City by an outside agency. Unrestricted category is defined as funds that can be used to meet ongoing obligations because they are not restricted by an outside agency. It is important to note, however, that under GASB reporting requirements for the ACFR, fund restrictions established by the City’s own policies are not reflected. As a result, some funds categorized as unrestricted for reporting purposes may still be subject to internal limitations. For purposes of ACFR reporting, the City’s unrestricted net position is comprised of funds committed or assigned for certain reserves or projects, including assets that are in non- spendable form per the agency’s established policies and procedures. For La Quinta some of the major restrictions to Unrestricted funds, as reported by FY 2023/24 ACFR are summarized below: Non-Spendable: Land Held for Resale $5,403,652 Non-Spendable: Due from Successor Agency $17,123,777 (Payable in annual installments through FY 2029/30 from the Successor Agency’s Redevelopment Property Tax Trust Fund (RPTTF) enforceable obligations) Restricted for Pension Trust (Section 115 Trust)$5,666,575 Reserves – Committed $45,000,000 Reserves – Assigned $70,304,510 Internal Service Funds $26,98,115 (Equipment Replacement, Information Technology, Park Equipment and Facilities, and Insurance) Unassigned Fund Balance The Unassigned Fund Balance at approximately $61.1 million, as reported by the City’s FY 2023/24 ACFR, are funds that have not been assigned to other Special Revenue Funds and that have not been restricted, committed, or assigned to specific purposes within the General Fund. The full detail of the $242,727,583 Unrestricted net cash position, as reported in the City’s FY 2023/24 ACFR, is provided in the table below and demonstrates that the City does not have $242.7 million available to meet ongoing obligations due to internal restrictions and obligations: 59 The City and City Council have an obligation to La Quinta’s residents/taxpayers to spend/allocate funds responsibly – staying within budget to cover all cost obligations/expenditures to keep the City safe and to maintain City facilities, roads, sidewalks, and parks. The City Council and Staff continue to exercise fiscal prudence in the stewardship of taxpayers’ dollars. Each year during the budget process, surplus funds are allocated to reserve accounts—some designated for specific purposes and others maintained as unassigned reserves. These funds are available to address emergencies, such as earthquakes, natural disasters, pandemics, or economic recessions, and to help offset rising costs associated with inflation, ensuring the City’s financial stability and operational continuity. It is vital for the City and for local governments to maintain adequate levels of fund balance to mitigate current and future risks such as revenue shortfalls and unanticipated expenditures. The City's fiscally conservative approach in prior years enabled us to successfully navigate extraordinary events such as the Great Recession of 2008, the global pandemic, and other cyclical economic shifts impacting our community. Both City staff and elected officials recognize their fiduciary responsibility to safeguard public resources and maintain the trust of our residents. This document reflects our continued commitment to prudent financial management and transparency. Governmental Activities- Unrestricted Net Position Nonspendable Prepaid Costs 171,077 Land held for resale 5,403,652 Due from Successor Agency 17,123,777 Restricted for Section 115 Trust 5,666,575 Committed to Natural Disaster Reserve 15,000,000 Economic Downturn Reserve 13,000,000 Cash Flow Reserve 5,000,000 Capital Replacement Reservie 12,000,000 Carryovers 900,000 Assigned for Public Safety 15,652,616 Sales Tax Reserve 32,985,374 Capital Projects 21,666,520 Unassigned 61,117,815 Internal Service Funds- Unrestricted 26,987,115 Unavailable Revenues: Housing Authority & Non-Major Special Revenue Funds 8,687,467 SUB-TOTAL 241,361,988$ Business-Type Activities: Unrestricted Net Position (SilverRock)1,365,595 UNRESTRICTED GRAND TOTAL 242,727,583$ FY 2023/24 ACFR Unrestricted Net Position Summary 60 NET POSITION (UNRESTRICTED) CATEGORY DEFINITIONS As stated in Governmental Accounting Standards Board (GASB) Summary of Statement No. 34 – Basic Financial Statements- and Management’s Discussion and Analysis (MD&A) for state and local governments, the definitions provided give a brief description on the categories that make up the unrestricted net position in both governmental activities and business-type activities. Governmental Activities Non-spendable includes amounts that cannot be spent on operating expenditures because they are either not in spendable form or are legally or contractually required to be maintained intact. This may include prepaid items, land held for resale, and amounts due from the Successor Agency to pay estimated installment payments of enforceable obligations until obligations of the Former Agency are paid in full and assets have been liquidated. Restricted includes amounts that are externally imposed by creditors, grantors, contributions, laws and regulations of other governments, or imposed by law. The Section 115 Trust is irrevocably dedicated to funding obligations of the City’s pension beneficiaries, other post-employment beneficiaries or costs of administering the Trust. Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of City’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is by a resolution. This includes the City’s four (4) defined reserve categories and carryovers for General Fund operational expenditures. Assigned includes amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. City Council is authorized to assign amounts to a specific purpose pursuant to the policy-making powers granted through a resolution. This includes Public Safety which represents property tax accumulated and held in trust by the County of Riverside for fire protection, accumulated resources related to the City’s sales tax Measure G, and capital projects which is comprised of carryover balances for capital projects. Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific purposes. The General Fund is the only fund that reports a positive unassigned fund balance. The unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. Internal Service Funds are used to allocate costs among the City’s various functions. The City has four (4) internal service funds: Equipment Replacement, Information Technology, Park Equipment and Facilities, and Insurance. Unavailable Revenues represents when an asset is recorded but the revenue is not yet available, such as a deferred inflow. These deferred resources are reported as 61 unavailable until such time as the revenue becomes available. The unrestricted net position is the remaining portion of net position that is not externally restricted. Business-Type Activities represents the City’s enterprise fund to account for the SilverRock Golf Course operations, which is considered a major fund. 62 Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2024 Prepared by: Finance Department California EXHIBIT A 63 CITY OF LA QUINTA, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Prepared by: Finance Department 64 THIS PAGE INTENTIONALLY LEFT BLANK 65 CITY OF LA QUINTA, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents Page Number INTRODUCTORY SECTION Letter of Transmittal ............................................................................................................................................i Principal Officials ............................................................................................................................................... vi Organizational Chart of City Departments ........................................................................................................ vii Certificate of Achievement for Excellence in Financial Reporting .................................................................... viii FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT ........................................................................................................... 1 MANAGEMENT’S DISCUSSION AND ANALYSIS .......................................................................................... 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position ................................................................................................................... 17 Statement of Activities ......................................................................................................................... 18 Fund Financial Statements: Balance Sheet - Governmental Funds ................................................................................................ 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................................................................................... 23 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ......................................................................................................... 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ......................................................................................................................... 26 Statement of Net Position - Proprietary Fund ..................................................................................... 27 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund ................................................................................................................. 28 Statement of Cash Flows - Proprietary Fund ...................................................................................... 29 Statement of Net Position - Fiduciary Funds ...................................................................................... 31 Statement of Changes in Net Position – Fiduciary Funds .................................................................. 32 Notes to Financial Statements ................................................................................................................. 33 66 CITY OF LA QUINTA, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents Page Number REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedules General Fund ..................................................................................................................................... 69 Housing Authority .............................................................................................................................. 70 Disaster Recovery ............................................................................................................................ 71 Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous Plan .............................. 72 Schedule of Plan Contributions – Miscellaneous Plan ............................................................................ 73 Schedule of OPEB Contributions ............................................................................................................. 73 Schedule of Changes in Net OPEB Liability/(Asset) and Related Ratios ................................................ 74 Notes to Required Supplementary Information ........................................................................................ 76 COMBINING AND INDIVIDUAL FUND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds ............................................................. 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ........................................................................... 87 Budgetary Comparison Schedules - Special Revenue Funds: State Gas Tax ............................................................................................................................... 94 Library and Museum ....................................................................................................................... 95 Federal Assistance ........................................................................................................................ 96 State Law Enforcement Services ................................................................................................... 97 Lighting and Landscaping .............................................................................................................. 98 Quimby ........................................................................................................................................... 99 La Quinta Public Safety Officer .................................................................................................... 100 Art in Public Places ...................................................................................................................... 101 South Coast Air Quality ................................................................................................................ 102 AB 939 .......................................................................................................................................... 103 Law Enforcement ......................................................................................................................... 104 Measure A .................................................................................................................................... 105 Economic Development ............................................................................................................... 106 AB 1379 ........................................................................................................................................ 107 67 CITY OF LA QUINTA, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents Page Number Budgetary Comparison Schedules - Capital Projects: Capital Improvements ................................................................................................................ 108 Maintenance Facilities DIF ......................................................................................................... 109 Infrastructure ............................................................................................................................. 110 Civic Center ................................................................................................................................ 111 Transportation ............................................................................................................................ 112 Parks and Recreation ................................................................................................................. 113 Library Development .................................................................................................................. 114 Community Center .................................................................................................................... 115 Street Facility ............................................................................................................................. 116 Park Facility ............................................................................................................................... 117 Fire Facility ................................................................................................................................. 118 Budgetary Comparison Schedules – Debt Service Funds: Financing Authority ..................................................................................................................... 119 Internal Service Funds: Combining Statement of Net Position ............................................................................................ 122 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................................................................................................ 123 Combining Statement of Cash Flows .............................................................................................. 124 STATISTICAL SECTION Net Position by Component ...................................................................................................................... 128 Changes in Net Position ........................................................................................................................... 130 Changes in Net Position – Governmental Activities ................................................................................. 134 Changes in Net Position – Business-type Activities ................................................................................. 136 Fund Balances of Governmental Funds ................................................................................................... 138 Changes in Fund Balances of Governmental Funds ................................................................................ 140 Tax Revenue by Source ........................................................................................................................... 142 Top 25 Bradley-Burns Sales Tax Producers ............................................................................................ 143 Top 25 Measure G Sales Tax Producers ................................................................................................. 145 Taxable Sales by Category ....................................................................................................................... 146 68 CITY OF LA QUINTA, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents Page Number Assessed Value of Taxable Property ......................................................................................................... 148 Direct and Overlapping Property Tax Rates ............................................................................................... 149 Principal Property Taxpayers ...................................................................................................................... 150 Property Tax Levies and Collections .......................................................................................................... 151 Ratios of Outstanding Debt by Type ........................................................................................................... 152 Ratio of General Bonded Debt Outstanding ............................................................................................... 154 Direct and Overlapping Debt ...................................................................................................................... 155 Legal Debt Margin Information ................................................................................................................... 156 Pledged-Revenue Coverage ...................................................................................................................... 158 Demographic and Economic Statistics ....................................................................................................... 159 Principal Employers .................................................................................................................................... 160 Full-time City Employees by Function ........................................................................................................ 161 Operating Indicators by Function ................................................................................................................ 162 Capital Assets Statistics by Function .......................................................................................................... 163 Schedule of Insurance in Force .................................................................................................................. 164 69   May 15, 2025 To the Citizens of La Quinta, and the Honorable Mayor and Members of the City Council: It is with great pleasure that we present to you the Annual Comprehensive Financial Report (ACFR) of the City of La Quinta for the fiscal year ending June 30, 2024. The ACFR has been prepared by the Finance Department for the benefit of City Council members, citizens, investors, grantors, employees, and others who may have an interest in the financial well-being of the City. The ACFR presents information regarding the City’s financial activities. This transmittal letter provides a non-technical summary of the City’s finances, services, achievements, and economic outlook. A more detailed analysis is presented in the Management’s Discussion and Analysis section (MD&A) that immediately follows the independent auditor’s report. The MD&A provides an overview and analysis of the basic financial statements and complements this transmittal. Responsibility for both the accuracy and the completeness of all disclosures rests with the City of La Quinta. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of City operations. Supplementary disclosures are included to summarize the City’s financial activities. This ACFR was prepared in conformance with Generally Accepted Accounting Principles (GAAP). The City’s financial reporting is based upon all Governmental Accounting Standards Board (GASB) Statements; these pronouncements are the most authoritative source for governmental GAAP. The City is responsible for ensuring an adequate internal control structure is in place. The internal control structure is subject to constant evaluation by the management of the City and annual review by independent auditors. Reviews determine the adequacy of the internal control structure, as well as to determine if the City complied with applicable laws and regulations. In reviewing internal control structures, the cost of a control should not exceed the benefits to be derived, hence the objective is to provide reasonable, rather than absolute assurance, that the financial statements are free of any material misstatements. LSL, LLP (LSL), has issued an unmodified opinion on the City’s financial statements for the year ended June 30, 2024. This is the most favorable conclusion. The independent auditor’s report is located at the front of the financial section. The independent audit involved examining evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and estimates made by management, and evaluating the overall financial statement presentation and conformity with GAAP. i 70 Government Profile The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of Riverside County known as the Coachella Valley. The City has a permanent population of approximately 38,000, within a boundary of 36 square miles. Each year nearly 18,000 seasonal residents also call La Quinta home from October through May. A natural paradise in the Coachella Valley, the City is nestled between the Santa Rosa and San Bernardino Mountains, is an integral part of the Coachella Valley’s world-renowned resort and retirement area, and is known for its championship golf, festivals and community events, health and wellness, stunning views and spectacular trails. The City was incorporated in 1982 as a general law City and became a charter city in November 1996. It is governed by a five-member City Council under the Council/Manager form of government. The Mayor is directly elected, serves a two-year term, and represents the City at many public functions; the four Council Members serve four-year terms, with two Council Members elected every two years. The Mayor and Council Members are elected at large and also serve as the Board of Directors of the Housing and Finance Authorities. The Council appoints the City Manager, who in turn appoints the Directors of the various departments except for the City Attorney who is appointed by the Council. The Finance Director also serves as the City/Housing Authority Treasurer and the City Manager is also the Executive Director of the Housing Authority. The City provides a range of services, which include street and infrastructure construction and maintenance; community development and planning; affordable housing programs; code compliance; recreational and cultural activities; and operations management. The City contracts with other government agencies and private entities for specific services, including police and fire protection, library and museum services, water and sewer service, electricity service, public transit, refuse collection, and street sweeping. The City’s annual operating and capital improvement budgets are adopted by resolutions for the fiscal year that begins July 1st. Separate resolutions are adopted by the City Council and Board of Directors of the Housing and Finance Authorities. The annual budget is the foundation for the City’s financial planning and control. The budget is prepared by fund, function, department, and line item. Activities of the General, Special Revenue, Debt Service, and Capital Project Funds are included in the appropriated budget. Department Directors may transfer line-item resources within a division with the approval of the City Manager. The City Manager may authorize transfers between divisions and departments. ii 71 Local Economy According to the State of California Employment Development Department, as of October 2024, the unadjusted unemployment rate for La Quinta was 6.7%, which was higher than unadjusted rates for Riverside County’s at 5.6% and the statewide average of 5.3%. Current unemployment rates are impacted by statewide trends showing that California’s overall job growth has slowed, particularly in sectors such as Professional and Business Services and segments of the government workforce. The City’s dominant industries are tourism, recreation, and retail, with the following being major employers: Desert Sands Unified School District, PGA West and Citrus Club, La Quinta Resort and Club, Costco, and Wal-Mart Super Center. Throughout the year La Quinta hosts a variety of multi-generational open-air events and shines in the national spotlight as the only PGA golf tour event in the region with the American Express Golf Tournament, which includes two nights of outdoor concerts. The City also co-hosts Ironman 70.3 Indian Wells La Quinta, which brings over 3,000 athletes and supporters from all over the world to the Coachella Valley. The City’s cultural diversity, values, unique characteristics and attributes are commemorated through artists who showcase their high-quality artwork at the fine art event, La Quinta Art Celebration, which is now held twice a year and is ranked number one in the United States by ArtFair Sourcebook’s Top 100 Fine Art Events. Substantially or entirely completed projects during 2023/24 included El Toro Loco on Calle Tampico, and Dunkin’ Donuts, Five Below, PGA Superstore, Ms. Boba, Luna Grill, and Handel’s Ice Cream along the Highway 111 corridor. Long-term Financial Planning Sound financial governance and prudent planning continues to be management’s focus. The City has a long history of providing superior service, life enrichment opportunities, and a quality environment to its residents, businesses, and visitors. La Quinta has taken a proactive approach to rising pension and public safety costs by building its reserve categories and paying down the City’s pension obligations. The City also continues to collaborate with Riverside County and other regional cities on police services to identify long-term savings. The City ensures that its long-range goals are met through a variety of Boards and Commissions. Each is comprised of Council-appointed residents, may include a City Council representative, and are supported by City staff. In addition, the City has adopted various financial policies and practices with the goal of sustaining a fiscally resilient government over the long-term, assuring fiscal sustainability, as well as increasing transparency and encouraging public engagement. iii 72 In 2023/24, the General Fund’s overall fund balance increased by about $23.8 million when compared to the ending balance in 2022/23, mainly due to revenue increases surpassing budget projections and prudent spending controls. As of June 30, 2024, all four of the City’s reserve categories (Cash Flow Reserve, Natural Disaster, Economic Disaster, and Capital Replacement) are fully funded to policy targets. In June 2024, the City Council adopted a balanced budget for fiscal year 2024/25, which strategically allocated Measure G reserves to support capital improvement projects. As a result of this allocation, the adopted budget projected operating revenues exceeding expenses by $3,382,635. The 2024/25 budget also maintains sustained funding for essential services, including police, fire protection, and the maintenance of critical infrastructure. La Quinta has cultivated a sound foundation of General Fund revenues including sales tax, transient occupancy tax, and property tax. The City was incorporated in 1982 after Proposition 13 was approved (the landmark property tax reform initiative enacted in 1978); as such, the City receives a smaller share of property tax revenue but has also secured additional property tax revenue from the County for fire and library services. The Future The City has a mixture of housing and commercial developments under construction. Larger residential developments underway include Jefferson Street Apartments, Village Hospitality Homes, Diamante by Crestwood Communities, Stone Creek, and Palo Verde. Commercial developments include the Dune Palms mixed-use project featuring Chick-fil-A and Quick Quack Car Wash, the Hampton Inn hotel, the Calle Estado mixed-use project, McQuaid Studio, and the expansion of Tower Market. Approved housing developments on the horizon include Flora at Jefferson Square, La Quinta Village Apartments, Sierra Blanca, Club at Coral Mountain, Travertine, and Bravo Estates. The Highway 111 Corridor Plan (Plan) continues to be a priority with daily traffic exceeding 40,000 vehicles, and accounting for nearly 80% of the City’s annual sales tax revenue. The two-mile-long, 400-acre regional commercial hub at the center of the City, is being evaluated to create a more connected and walkable environment through the implementation of form-based code (FBC). FBC is anticipated to reshape the corridor by adding mixed-use and infill development and incorporating ever-evolving shopping trends. The City acquired vacant property on the north side of Highway 111, which is anticipated to be developed as a mixed-use project with commercial and residential components furthering the City’s goals of fostering mixed-use development, affordable housing, multi-modal transportation, and the development of the Highway 111 corridor. iv 73 Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2023. This was the twenty-seventh consecutive year that the City received this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for one year. We believe that our current ACFR continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. We would like to express our appreciation to the City Council and the Financial Advisory Commission for their ongoing oversight of the financial affairs of the City and their prudent fiscal, economic, and land use policy and direction. We also thank City staff with special appreciation to the Finance Department for their continued effort to provide accurate financial data and the preparation of this report. Respectfully Submitted, Jon McMillen, City Manager Claudia Martinez, Finance Director v 74 City of La Quinta List of Principal Officers June 30, 2024 CITY COUNCIL Linda Evans, Mayor John Peña, Mayor Pro Tem Kathleen Fitzpatrick, Council Member Deborah McGarrey Council Member Steve Sanchez, Council Member ADMINISTRATION Jon McMillen, City Manager Claudia Martinez, Finance Director/ City Treasurer Danny Castro, Design and Development Director Bryan McKinney, Public Works Director/ City Engineer Gilbert Villalpando, Business Unit/Housing Development Director Monika Radeva, City Clerk William H. Ihrke, City Attorney vi 75 C i t y of La Qu i n ta La Qui n ta, Cal i for n i a KZ'E/d/KE>,Zd &ŽƌůŝƐƚŝŶŐŽĨƐƚĂĨĨŝŶŐďLJĚĞƉĂƌƚŵĞŶƚĂŶĚƚŽƚĂůŶƵŵďĞƌ ŽĨĞŵƉůŽLJĞĞƐ͕ƐĞĞ^ƚĂƚŝƐƚŝĐĂů^ĞĐƚŝŽŶͲ&ƵůůdŝŵĞŝƚLJ ŵƉůŽLJĞĞƐďLJ&ƵŶĐƚŝŽŶ͘ vii 76 viii 77 LSLCPAS.COM INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council City of La Quinta, California Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of La Quinta, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 78 To the Honorable Mayor and Members of the City Council City of La Quinta, California Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 79 To the Honorable Mayor and Members of the City Council City of La Quinta, California Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (“supplementary information”) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 15, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Irvine, California May 15, 2025 3 80 THIS PAGE INTENTIONALLY LEFT BLANK 4 81 MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED) This narrative provides an overview and analysis of the City of La Quinta’s (City) financial activities for the fiscal year ending June 30, 2024. The City Executive Team encourages readers to consider this information in conjunction with the data provided in our transmittal letter, which is in an earlier section of this report. All amounts, unless otherwise indicated, are rounded to the nearest thousand dollars and dates are represented by fiscal year. 5 82  HIGHLIGHTS At the close of 2023/24 (June 30, 2024): The total assets and deferred outflows of the City exceeded its total liabilities and deferred inflows at the close of the fiscal year 2023/24 by $905,004,000 (net position). Of this amount, $242,728,000 (unrestricted net position) may be used to meet ongoing obligations and approximately $592,061,000 or 65% was invested in capital assets and is not available to meet ongoing obligations. Governmental activities total net position increased by $45,586,000 and the Business-Type total net position increased by $820,000 which is attributable to the SilverRock Golf Course. Governmental funds (General Fund, Housing Authority, Disaster Recovery Fund, Capital Improvement Fund, sixteen (16) non-major special revenue funds, ten (10) non-major capital projects funds, and one (1) non-major debt service fund) had a combined ending fund balance of $269,902,000, an increase of $30,082,000. The primary reasons for this increase can be attributed to taxes exceeding the original budget projections coupled with expenditure savings and a positive fair market value adjustment to the overall investment portfolio. The unassigned General Fund balance comprised $65,217,000, or 31%, of the total $209,786,000 balance and represented 39% of total final General Fund budgeted expenses including transfers and multi-year capital projects. Total governmental activities debt decreased by $143,000 from $1,703,000 to $1,560,000. OVERVIEW Government-Wide Financial Statements The government-wide financial statements provide a broad overview of the City’s finances. There are two statements – statement of net position and statement of activities, as described below. The statement of net position presents information on all City assets and deferred outflows of resources as well as liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the City’s financial position is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event occurs giving rise to the change, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, for example, earned but unused vacation leave. Both of these government-wide financial statements distinguish City functions, which are principally supported by taxes, fees, and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or 6 83 a significant portion of their costs through user charges (business-type activities). Governmental activities include general government, public safety, community services, planning and development and public works; business-type activities include the SilverRock Golf course operations. The government-wide financial statements include not only the City of La Quinta (known as the primary government), but also the La Quinta Financing Authority and the La Quinta Housing Authority. Although legally separate entities, they function for all practical purposes as City departments. The government-wide financial statements are listed in the table of contents under the Financial Section of this report. Fund Financial Statements A fund is a grouping of related accounts and is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure compliance with finance-related legal requirements. All City’s funds are aggregated into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus is narrower than the government-wide financial statements, it is useful to compare this information with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains thirty-one (31) individual governmental funds, which are distinguished between major and non-major funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. There are four (4) major governmental funds: the General Fund, the Housing Authority special revenue fund, the Disaster Recovery special revenue fund, and the Capital Improvement capital project fund. Data from the other twenty-seven (27) governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Combining and Individual Fund Statements and Schedules section of the report. 7 84 The City adopts an annual budget for its General Fund. A budgetary comparison schedule has been provided to demonstrate compliance with the adopted budget. The basic governmental fund financial statements can be found in the table of contents under the heading Basic Financial Statements. Proprietary Funds Proprietary funds are broken down into enterprise and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City maintains one (1) enterprise fund to account for the SilverRock Golf Course operations, which is considered a major fund. Internal service funds are used to allocate costs among the City’s various functions. The City has four (4) internal service funds: Equipment Replacement, Information Technology, Park Equipment and Facilities, and Insurance. Because these four (4) services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements on the Combining and Individual Fund Statements and Schedules section of the report. The basic proprietary fund financial statements are listed in the table of contents under Proprietary Funds: Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, and Statement of Cash Flows. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City reports on two fiduciary funds: 1) the Pension (and Other Employee Benefit) Trust fund which accounts for the Defined Contribution Pension Trust established to provide supplemental retirement benefits for employees, and (2) Successor Agency of the Former RDA Private-Purpose Trust Fund which provides for activities associated with the dissolution of the former Redevelopment Agency. The basic fiduciary fund financial statements are listed in the table of contents under Fiduciary Funds: Statement of Net Position and Statement of Changes in Net Position. Notes to the Financial Statements The notes to the financial statements provide information that is essential to obtain a full understanding of the data provided in the government-wide and fund financial statements. These notes are listed in the table of contents under Notes to Financial Statements. 8 85  Other Information In addition to the financial statements and accompanying notes, this report also presents the combining statements referred to earlier in connection with non-major governmental funds, internal service funds, and agency funds. The non-major governmental funds’ combining statements are presented immediately following the Required Supplementary Information while the combined statements for the internal service funds and agency funds are presented following the budgetary comparison schedules for the debt service funds. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. The City’s net position, the difference between assets and liabilities and deferred inflows/outflows, is one way to measure the City’s financial health or financial position. Over time, increases or decreases in the City’s net position indicate whether its financial health is improving or deteriorating. The City’s net position increased from $858,597,00 to $905,004,000 at the close of the 2023/24, which is $46,407,000 more than the previous year. Increases were reflected in restricted and unrestricted net position for governmental activities. The largest portion of the City’s Net Position ($574,870,000 or 67% for 2022/23 and $592,061,000 or 65% for 2023/24) reflects investment in capital assets (e.g., land, buildings; machinery, and equipment), net of related debt. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. City of La Quinta Net Position An additional portion of the City's net position ($62,284,000 or 7% in 2023 and $70,215,000 or 8% in 2024) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $242,728,000 (27%) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of 2023/24, the City had positive balances in all three categories of net position for the governmental and business-type activities. Current and other assets 309,087,961$ 346,290,680$ 12% 1,546,130$ 1,841,674$ 19% 310,634,091$ 348,132,354$ 12% Capital assets 533,177,093 549,571,823 3%42,558,046 42,987,413 1%575,735,139 592,559,236 3% Total Assets 842,265,054 895,862,503 6%44,104,176 44,829,087 2%886,369,230 940,691,590 6% Deferred outflows of resources 19,619,118 11,707,753 -40%- - 0%19,619,118 11,707,753 -40% - - 0% Current liabilities 26,214,135 33,085,649 26%379,823 476,079 25%26,593,958 33,561,728 26% Non-current liabilities 15,253,979 4,259,110 -72%315,520 123,859 0%15,569,499 4,382,969 -72% Total Liabilities 41,468,114 37,344,759 -10%695,343 599,938 -14%42,163,457 37,944,697 -10% Deferred inflows of resources 5,227,571 9,450,571 81%- - 0%5,227,571 9,450,571 81% Net Position: Net investment in capital assets 532,627,757 549,197,719 3%42,242,526 42,863,554 1%574,870,283 592,061,273 3% Restricted 62,283,620 70,215,219 13%- - 0%62,283,620 70,215,219 13% Unrestricted 220,277,110 241,361,988 10%1,166,307 1,365,595 17% 221,443,417 242,727,583 10% Total Net Position 815,188,487$ 860,774,926$ 6%43,408,833$ 44,229,149$ 2%858,597,320$ 905,004,075$ 5% Total by Fiscal Year % Change20232024 Governmental Activities Business-Type Activities % Change % Change2023202420232024 9 86 Governmental Activities Governmental activities net position increased by $45,586,000 accounting for a positive 6% percent change in the net position from the previous year. Key elements of these changes are as follows: City of La Quinta Changes in Net Position Governmental revenues overall increased by $14,876,000 with the largest increases being $12,708,000 in use of money and property, followed by $5,318,000 for capital grants and contributions and $3,950,000 in property taxes. Expenses for Governmental Activities increased by $3,559,000 (an 5% increase when compared to 2022/23), with the largest increase being $6,486,000 in Planning & Development offset by a decrease of $6,486,000 increase in General Government. As noted earlier, Governmental Activities includes 31 individual governmental funds and includes capital asset activity allocated on a percentage basis by department. Additional information on capital asset activity distribution can be found in Note 4. The General Fund contributed $1,466,000 to the business-type activities of the golf course. Funds were utilized to support operations per the adjusted budget. Business-Type Activities This was the nineteenth full year of operations for the SilverRock Golf Resort since the golf course opened in 2005. Charges for services primarily consisted of green fees which totaled $4,965,000, $198,000 higher than the previous year, with golf course expenses of $5,643,000, which were $123,000 or approximately 2% more than the previous year. In 2023/24, the General Fund transferred $1,466,000 to the SilverRock Golf Fund to support operations. After this transfer, the net position increase by $820,000. PROGRAM REVENUES: Charges for Services 6,551,700$ 4,921,690$ (1,630,010)$ 4,767,458$ 4,965,124$ 197,666$ 11,319,158$ 9,886,814$ (1,432,344)$ Operating Grants and Contributions 7,136,358 7,265,464 129,106 - - - 7,136,358 7,265,464 129,106 Capital Grants and Contributions 8,760,788 14,078,555 5,317,767 - - - 8,760,788 14,078,555 5,317,767 GENERAL REVENUES & TRANSFERS - Property Taxes 20,697,081 24,646,620 3,949,539 - - - 20,697,081 24,646,620 3,949,539 Other Taxes 51,942,858 49,202,291 (2,740,567) - - - 51,942,858 49,202,291 (2,740,567) Investment Income 5,058,717 - (5,058,717) 12,456 - (12,456)5,071,173 - (5,071,173) Net Change in Fair Value of Investments (1,519,171) - 1,519,171 20,665 - (20,665) (1,498,506) - 1,498,506 Use of Money & Property - 12,708,191 12,708,191 - 32,253 32,253 - 12,740,444 12,740,444 Motor Vehicle In Lieu 5,110,569 5,584,194 473,625 - - - 5,110,569 5,584,194 473,625 Miscellaneous 1,432,619 1,640,182 207,563 - - - 1,432,619 1,640,182 207,563 TOTAL REVENUES 105,171,519 120,047,187 14,875,668 4,800,579 4,997,377 196,798 109,972,098 125,044,564 15,072,466 EXPENSES: General Government 17,213,248 10,727,413 (6,485,835) - - - 17,213,248 10,727,413 (6,485,835) Public Safety 25,457,350 29,156,519 3,699,169 - - - 25,457,350 29,156,519 3,699,169 Planning & Development 3,146,264 8,432,348 5,286,084 - - - 3,146,264 8,432,348 5,286,084 Community Services 9,550,001 13,647,971 4,097,970 - - - 9,550,001 13,647,971 4,097,970 Public Works 14,043,797 10,982,293 (3,061,504) - - - 14,043,797 10,982,293 (3,061,504) Interest on Long-Term Debt 25,504 48,204 22,700 - - - 25,504 48,204 22,700 Golf Course - - - 5,520,342 5,643,061 122,719 5,520,342 5,643,061 122,719 TOTAL EXPENSES 69,436,164 72,994,748 3,558,584 5,520,342 5,643,061 122,719 74,956,506 78,637,809 3,681,303 Excess or Deficiency before Transfers & Extraordinary Items 35,735,355 47,052,439 11,317,084 (719,763) (645,684) 74,079 35,015,592 46,406,755 11,391,163 TRANSFERS & EXTRAORDINARY ITEMS: Transfers(600,000) (1,466,000) (866,000) 600,000 1,466,000 866,000 - - - Increase in Net Position 35,135,355 45,586,439 10,451,084 (119,763) 820,316 940,079 35,015,592 46,406,755 11,391,163 Net Position - Beginning 780,053,132 815,188,487 35,135,355 43,528,596 43,408,833 (119,763) 823,581,728 858,597,320 35,015,592 NET POSITION - ENDING 815,188,487$ 860,774,926$ 45,586,439$ 43,408,833$ 44,229,149$ 820,316$ 858,597,320$ 905,004,075$ 46,406,755$ 2024 Change Governmental Activities Business-Type Activities Total by Fiscal Year 2023 2024 Change 2023 2024 Change 2023 10 87 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of 2023/24, the City's governmental funds reported combined ending fund balances as follows: City of La Quinta Governmental Fund Balances Governmental fund balances ended the year totaling $269,902,000, an increase of $30,082,000 in comparison with the prior years’ ending balance of $239,820,000. These collective fund balances include the General Fund, Housing Authority, Financing Authority, Capital Improvement Fund, and various Special Revenue funds. Nonspendable Nonspendable fund balance totaled $22,699,000 or 8%; this represents amounts that are not available to pay for operating expenditures because they are in the form of land and receivables. Restricted Restricted fund balance totaled $69,881,000 or 26%; these amounts represent funds with external limitations on spending. Significant restrictions include: Section 115 trust of $5,667,000 restricted for pension liabilities; Library and Museum totaling $13,660,000 which represents property tax increment money that can only be used for library and museum services; Measure A funding of $3,467,000 which can only be used for transportation; Transportation capital project fund of $5,868,000 in developer fees that are restricted for the acquisition, construction and improvement of the City’s infrastructure; and Economic Development funding of $3,486,000 that can only be used for future economic development in the City. Committed $45,900,000 (17%) are committed fund balances which are the result of self-imposed limitations established by the City Council. In May 2018, the City adopted a Reserve Policy that established committed General Fund reserve categories, including Natural Disaster Reserves, Economic Disaster Reserves, Cash Flow Reserves, and Capital Category General Fund Percent All Other Funds Percent Total Funds Percent Nonspendable 22,698,006$ 11% 500$ 0.001% 22,698,506$ 8% Restricted 5,666,575 3% 64,214,488 107% 69,881,063 26% Committed 45,900,000 22% - 0% 45,900,000 17% Assigned 70,304,510 34% - 0% 70,304,510 26% Unassigned 65,216,616 31% (4,098,801) -7% 61,117,815 23% TOTAL 209,785,707$ 100% 60,116,187$ 100% 269,901,894$ 100% 11 88  Replacement Reserves. The Policy was updated in 2023 to include increased funding targets. As of June 30, 2024, all reserve categories are fully funded at their target levels. Assigned Assigned funds are constrained by the City’s intent to use them for specific purposes and represent a total of $70,305,000 (26%) of the total fund balance. $21,667,000 represents funds for approved multi-year capital projects that were not spent by the end of the year, therefore they are carried over until the projects are completed. Available Measure G sales tax revenue ended the year at $32,985,000 and $15,653,000 represents funds held in trust with the County of Riverside for fire services. Unassigned The remaining fund balance of $61,118,000 represents unassigned fund balances or the residual net resources after taking into consideration the other classifications. The Capital Improvement Fund accounted for $2,184,000 of the negative $4,099,000 balance of all other funds. The remaining negative balance was largely attributed to the Library Development Impact Fee Fund. This amount represents an advance due to the Redevelopment (RDA) Successor Agency and is included in the Successor Agency of the former RDA as a receivable. General Fund The General Fund is the City’s chief operating fund. At the end of 2023/24, the unassigned fund balance was $65,217,000 while total fund balance was $209,786,000. The General Fund balance increased by $23,809,000 in 2023/24. Key factors were:  A year-over-year decrease of $2,432,000 in non-spendable is attributed to the 2023/24 Redevelopment Agency loan repayment of $2,750,000 offset by interest earnings of $273,000 resulted in a net decrease of $2,477,000 in Due from Other Governments. The outstanding loan balance of $21,405,000 is recognized as 80% in the General Fund and 20% in the Housing Authority Fund. Restricted reserves are limited to funds held in a Section 115 Pension Trust set aside to fund the City’s pension obligations. The trust was initially established in FY 2018/19 with a deposit of $6,540,000, followed by an additional $3,460,000 in FY 2019/20. In FY 2022/23, a one-time discretionary payment of $5,000,000 was made to CalPERS to reduce the City’s unfunded pension liabilities, utilizing funds from the trust. The increase in FY 2023/24 was primarily driven by interest earnings within the trust. Committed reserves decreased by $1,700,000, primarily due to a reduction in operational carryovers. In the prior year, $2,600,000 was carried over to support ongoing operations, whereas only $900,000 was required in the current year. The lower carryover amount reflects that additional operational support was not needed this year, indicating improved budget alignment and operational efficiency. 12 89 An increase of $6,480,000 in assigned reserves was due to Measure G sales tax reserve ($3,771,000) and ($3,666,000) in the fire services trust. Assigned to public safety represents property tax accumulated and held in trust by the County of Riverside for fire protection, disaster preparedness and response, fire prevention, rescue, hazardous materials mitigation, technical rescue response, medical emergency services, and public service assistance (the County and City negotiated an agreement wherein the County fire service property tax revenue generated in the two former City redevelopment project areas is pledged to the City to fund the aforementioned services). This portion of assigned fund balance as of June 30, 2024 is $15,653,000. These increases combined with a decrease in multi-year Capital Projects ($957,000) contributed to the overall increase in assigned reserves. Housing Authority Fund The Housing Authority Fund is used to account for the activities of the Housing Authority; the Housing Authority invests in programs and projects that preserve and increase the supply of affordable housing in the City. The fund balance decreased by $1,610,000 to end the year at $24,756,000. Capital Improvement Fund The Capital Improvement Fund is primarily used to record the expenditures for capital projects. The fund had forty-seven (47) active Capital Improvement Projects budgeted during 2023/24. The five most active projects were: Dune Palms Bridge Improvements ($11,475,000) Avenue 50 Pavement Rehabilitation ($2,605,000) Fred Waring Drive Pavement Rehabilitation ($2,444,000) Citywide Pavement Management Plan ($1,830,000) Citywide Landscape Renovation Improvements ($1,290,000) These projects, along with others, leveraged State or Federal grant funds or were significantly supported with Measure G sales tax revenues. PROPRIETARY FUNDS The City of La Quinta's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The financial activities of the City enterprise fund are addressed in the discussion of the City’s business-type activities. In addition, the City has four (4) internal service funds to accumulate resources for equipment and vehicle replacement, information technology, insurance, and park equipment and facility replacement. 13 90 GENERAL FUND BUDGETARY HIGHLIGHTS Most General Fund revenues experienced positive variances when compared to the final budget specifically related to use of money and property and tax revenues. Revenue appropriations and transfers in increased by $4,399,000 between the original ($78,578,000) and final amended budget ($82,977,000). The category representing the largest variances is taxes, which represents 84% of all General Fund revenues. Actuals for taxes include the three largest funding sources for the City – sales taxes $27,642,000, transient occupancy taxes (TOT) $15,683,000, and property taxes $12,682,000. Combined, these top three revenues account for $56,007,000 or 73% of all taxes, resulting in a $793,000 decrease from the prior fiscal year in sales and transient occupancy taxes offset by a increase in property taxes. The Extraordinary Item includes $273,000 to record the annual former Redevelopment Agency loan repayment interest earned in 2023/24. The loan repayments are structured to pay all principal first, then interest. Each year the City records the payment received and interest earned in accordance with the State Department of Finance approved loan repayment schedule. Loan repayments are not budgeted; these funds are recognized in unassigned reserves and reduce non-spendable reserves each year. Furthermore, 80% of the extraordinary gain is recognized in the General Fund and 20% in the Housing Authority Fund. Expenditure appropriations and transfers out increased by $29,048,000 between the original ($72,829,000) and final amended budget ($101,877,000) which included the following significant change: $22,623,000 in operational and capital improvement project carryover appropriations from prior fiscal years to 2023/24 as approved by City Council. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City’s capital assets for its governmental and business-type activities as of June 30, 2024, were $592,559,000 (net of accumulated depreciation). This includes land, right of way, buildings and improvements, machinery and equipment, streets and bridges, construction in progress, and the right to use lease and subscription assets. The investment in capital assets decreased by $16,824,000 in 2023/24 primarily due to an increase in construction in progress. The following chart lists the asset categories for governmental and business-like activities net of depreciation: City of La Quinta Capital Assets (net of depreciation) 2023 2024 2023 2024 2023 2024 Land 83,717,732$ 87,280,570$ 39,712,956$ 39,712,955$ 123,430,688$ 126,993,525$ Buildings & Improvements 36,354,815 35,162,219 2,484,095 2,269,551 38,838,910 37,431,770 Equipment & Furniture 1,147,737 1,499,415 49,910 16,467 1,197,647 1,515,882 Vehicles 1,281,556 1,022,210 - 867,343 1,281,556 1,889,553 Infrastructure 401,770,282 397,919,236 - - 401,770,282 397,919,236 Right to use Leased Assets 49,643 - 311,085 121,097 360,728 121,097 Right to use Subscription IT Assets 592,321 - - - 592,321 - Right to use Lease & Subscription Assets -402,236 - - -402,236 Construction in Progress 8,263,007 26,285,937 - - 8,263,007 26,285,937 TOTAL 533,177,093$ 549,571,823$ 42,558,046$ 42,987,413$ 575,735,139$ 592,559,235$ Governmental Activities Business-Type Activities Total By Fiscal Year Description 14 91 Major capital asset events under Governmental Activities included the following: Recording infrastructure improvements, street improvements, street right of way, street sidewalks and curbs and gutters, traffic signals, street medians, and construction in progress. Business-Type Activities The Golf Course capital asset balance at June 30, 2024, was $42,987,000, net of accumulated depreciation. The balance increase of $429,000 reflects the purchase of golf carts in the Vehicles category in 2023/24. Additional information on the City of La Quinta’s capital assets can be found in Note 4 to the financial statements. Long-Term Debt At the end of 2023/24, the City governmental activities had total outstanding debt of $1,560,000, which is $144,000 less than the previous year. Of the total amount, $92,000 represents leases, $282,000 represents subscription IT liabilities, and $1,186,000 in employee compensated absences. City of La Quinta Outstanding Debt Additional information on long-term debt can be found in Note 5 of the financial statements. REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the City’s finances. Questions concerning this information or requests for additional information should be addressed to the City of La Quinta, Claudia Martinez, Finance Director/City Treasurer, 78495 Calle Tampico, La Quinta, CA, 92253, by telephone at 760-777-7055, or by email at finance@laquintaca. Debt Type:2023 2024 Leases 53,111$ 91,795$ Financed Purchases 551 - Compensated Absences 1,154,090 1,185,597 Subscription IT liabilities 495,674 282,309 TOTAL 1,703,426$ 1,559,701$ Governmental Activities 15 92 THIS PAGE INTENTIONALLY LEFT BLANK 16 93 CITY OF LA QUINTA, CALIFORNIA Statement of Net Position Governmental Business-Type Activities Activities Total ASSETS Cash and investments 266,729,385$ 1,449,251$ 268,178,636$ Receivables: Accounts 2,106,591 - 2,106,591 Taxes 6,895,002 - 6,895,002 Accrued interest 6,005,424 883 6,006,307 Due from other governments 29,061,585 - 29,061,585 Notes and loans 22,414,377 - 22,414,377 Leases 1,334,093 - 1,334,093 Deposits 47,964 250,000 297,964 Restricted assets: Cash and investments 5,666,575 - 5,666,575 Inventories - 141,540 141,540 Land held for resale 5,403,652 - 5,403,652 Prepaid costs 291,876 - 291,876 Net OPEB Asset 334,156 - 334,156 Capital assets (not being depreciated)399,640,855 39,712,955 439,353,810 Capital assets (net of accumulated depreciation/amortization)149,930,968 3,274,458 153,205,426 Total assets 895,862,503 44,829,087 940,691,590 DEFERRED OUTFLOWS OF RESOURCES Pension-related 11,361,579 - 11,361,579 OPEB-related 346,174 - 346,174 Total deferred outflows of resources 11,707,753 - 11,707,753 LIABILITIES Accounts payable 12,881,315 440,445 13,321,760 Due to other governments 1,121,132 - 1,121,132 Accrued liabilities 590,931 - 590,931 Accrued interest 7,160 134 7,294 Deposits payable 7,066,131 35,500 7,101,631 Unearned revenue 11,418,980 - 11,418,980 Noncurrent liabilities: Due within one year: leases, SBITA and compensated absences 546,785 72,563 619,348 Due in more than one year: Net pension liability 2,699,409 - 2,699,409 Leases, SBITA, and compensated absences 1,012,916 51,296 1,064,212 Total liabilities 37,344,759 599,938 37,944,697 DEFERRED INFLOWS OF RESOURCES Pension-related 7,705,327 - 7,705,327 OPEB-related 524,199 - 524,199 Lease-related 1,221,045 - 1,221,045 Total deferred inflows of resources 9,450,571 - 9,450,571 NET POSITION Net investment in capital assets 549,197,719 42,863,554 592,061,273 Restricted: General government 26,037,252 - 26,037,252 Public safety 1,926,497 - 1,926,497 Community development 18,130,448 - 18,130,448 Parks and recreation 7,588,221 - 7,588,221 Public works 10,532,070 - 10,532,070 OPEB Section 115 Trust 5,666,575 - 5,666,575 OPEB 334,156 - 334,156 Unrestricted 241,361,988 1,365,595 242,727,583 Total net position 860,774,926$ 44,229,149$ 905,004,075$ June 30, 2024 Primary Government See Notes to Financial Statements 17 94 CITY OF LA QUINTA, CALIFORNIA Statement of Activities For the Year Ended June 30, 2024 Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs: Primary government: Governmental activities: General government 10,727,413$ 3,861,857$ 639,349$ -$ Public safety 29,156,519 988,238 226,896 - Planning and development 8,432,348 - 167,376 - Community services 13,647,971 - 4,207,392 - Public works 10,982,293 71,595 2,024,451 14,078,555 Interest on long-term debt 48,204 - - - Total governmental activities 72,994,748 4,921,690 7,265,464 14,078,555 Business-type activities: Golf Course 5,643,061 4,965,124 - - Total business-type activities 5,643,061 4,965,124 - - Total primary government 78,637,809$ 9,886,814$ 7,265,464$ 14,078,555$ General revenues and transfers: General revenues: Property taxes Sales taxes Transient occupancy taxes Franchise taxes Business licenses taxes Other taxes Motor vehicle in lieu - unrestricted Use of money and property Other Transfers Total general revenues and transfers Change in net position Net position-beginning Net position-ending Program Revenues See Notes to Financial Statements 18 95 Governmental Business-Type Activities Activities Total (6,226,207)$ -$ (6,226,207)$ (27,941,385) - (27,941,385) (8,264,972) - (8,264,972) (9,440,579) - (9,440,579) 5,192,308 - 5,192,308 (48,204) - (48,204) (46,729,039) - (46,729,039) - (677,937) (677,937) - (677,937) (677,937) (46,729,039)$ (677,937)$ (47,406,976)$ 24,646,620 - 24,646,620 29,601,430 - 29,601,430 15,682,835 - 15,682,835 2,419,887 - 2,419,887 395,593 - 395,593 1,102,546 - 1,102,546 5,584,194 - 5,584,194 12,708,191 32,253 12,740,444 1,640,182 - 1,640,182 (1,466,000) 1,466,000 - 92,315,478 1,498,253 93,813,731 45,586,439 820,316 46,406,755 815,188,487 43,408,833 858,597,320 860,774,926$ 44,229,149$ 905,004,075$ Primary Government Net (Expenses) Revenues and Changes in Net Position See Notes to Financial Statements 19 96 CITY OF LA QUINTA, CALIFORNIA Balance Sheet Governmental Funds June 30, 2024 Capital Projects Fund General ASSETS Cash and investments 184,192,969 19,682,214$ 10,415,934$ 817,344$ Receivables: Accounts 957,711 105,363 - 934,764 Taxes 6,262,399 - - - Notes and loans - 22,414,377 - - Accrued interest 204,039 5,727,497 12,424 - Leases 1,334,093 - - - Prepaid costs 170,577 - - - Deposits - 47,964 - - Due from other governments 17,524,493 4,280,944 - 5,699,864 Due from other funds 2,202,992 - - - Property held for resale 5,403,652 - - - Restricted assets: Cash and investments 5,666,575 - - - Total assets 223,919,500$ 52,258,359$ 10,428,358$ 7,451,972$ LIABILITIES Accounts payable 4,593,089$ 22,616$ -$ 6,230,458$ Accrued liabilities 528,314 21,169 - - Unearned revenues - - 9,987,008 1,431,972 Deposits payable 7,039,781 26,350 - - Due to other governments 2,505 - - - Due to other funds - 1,390,783 - - Total liabilities 12,163,689 1,460,918 9,987,008 7,662,430 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 749,059 26,041,611 - 1,973,989 Leases 1,221,045 - - - Total deferred inflows of resources 1,970,104 26,041,611 - 1,973,989 FUND BALANCES (DEFICITS) Nonspendable 22,698,006 - - - Restricted 5,666,575 24,755,830 441,350 - Committed 45,900,000 - - - Assigned 70,304,510 - - - Unassigned 65,216,616 - - (2,184,447) Total fund balances (deficits)209,785,707 24,755,830 441,350 (2,184,447) Total liabilities, deferred inflows of resources, and fund balances (deficits)223,919,500$ 52,258,359$ 10,428,358$ 7,451,972$ Special Revenue Funds Housing Authority Disaster Recovery Capital Improvements See Notes to Financial Statments.20 97 CITY OF LA QUINTA, CALIFORNIA Balance Sheet Governmental Funds June 30, 2024 ASSETS Cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Leases Prepaid costs Deposits Due from other governments Due from other funds Property held for resale Restricted assets: Cash and investments Total assets LIABILITIES Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues Leases Total deferred inflows of resources FUND BALANCES (DEFICITS) Nonspendable Restricted Committed Assigned Unassigned Total fund balances (deficits) Total liabilities, deferred inflows of resources, and fund balances (deficits) Total Total Nonmajor Governmental Funds Funds 37,583,982$ 252,692,443$ 108,753 2,106,591 632,603 6,895,002 - 22,414,377 44,725 5,988,685 500 1,334,593 - 170,577 - 47,964 1,556,284 29,061,585 - 2,202,992 - 5,403,652 - 5,666,575 39,926,847$ 333,985,036$ 744,603$ 11,590,766$ 39,391 588,874 - 11,418,980 - 7,066,131 1,118,627 1,121,132 812,209 2,202,992 2,714,830 33,988,875 108,563 28,873,222 - 1,221,045 108,563 30,094,267 500 22,698,506 39,017,308 69,881,063 - 45,900,000 - 70,304,510 (1,914,354) 61,117,815 37,103,454 269,901,894 39,926,847$ 333,985,036$ See Notes to Financial Statments.21 98 THIS PAGE INTENTIONALLY LEFT BLANK 22 99 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2024 Amounts reported for governmental activities in the Statement of Net Position are different because: Total fund balances - governmental funds 269,901,894$ 535,127,553 Deferred outflows-pension related 11,361,579$ Deferred outflows-OPEB related 346,174 Deferred inflows-pension related (7,705,327) Deferred inflows-OPEB related (524,199) Total deferred outflows and inflows related to postemployment benefits 3,478,227 Long-term receivables 28,873,222 Net OPEB asset 334,156 Total other long-term assets 29,207,378 26,987,115 Leases (42,235) Compensated absences (1,185,597) Net pension liability (2,699,409) Total long-term liabilities (3,927,241) Net position of governmental activities 860,774,926$ Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds. CITY OF LA QUINTA, CALIFORNIA Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds. Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position. Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds. Internal service funds provide services to other funds on a cost-reimbursement basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities. See Notes to Financial Statements 23 100 CITY OF LA QUINTA, CALIFORNIA Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2024 General REVENUES Taxes 76,894,958$ -$ -$ -$ Assessments - - - - Licenses and permits 2,820,613 - - - Intergovernmental 523,573 - - 14,078,555 Charges for services 1,494,422 - - - Use of money and property 7,714,344 2,295,077 491,528 - Fines and forfeitures 408,125 - - - Developer fees - - - 100,044 Miscellaneous 1,346,240 149,395 - - Total revenues 91,202,275 2,444,472 491,528 14,178,599 EXPENDITURES Current: General government 7,600,439 - - - Public safety 25,273,718 - - - Community services 10,589,615 250,000 - - Planning and development 5,708,043 1,566,300 - - Public works 2,314,134 - - - Capital outlay 169,919 3,625,185 - 24,630,204 Debt service:- - - - Principal 24,452 - - - Interest and fiscal charges - - - - Total expenditures 51,680,320 5,441,485 - 24,630,204 Excess (deficiency) of revenues over (under) expenditures 39,521,955 (2,997,013) 491,528 (10,451,605) OTHER FINANCING SOURCES (USES) Transfers In - 1,387,009 - 14,366,766 Transfers Out (15,763,243) - - - Debt Issuance Proceeds 49,487 - - - Total other financing sources (uses) (15,713,756) 1,387,009 - 14,366,766 Net change in fund balances 23,808,199 (1,610,004) 491,528 3,915,161 Fund balances (deficit)-beginning 185,977,508 26,365,834 (50,178) (6,099,608) Fund balances (deficit)-ending 209,785,707$ 24,755,830$ 441,350$ (2,184,447)$ Capital Projects Funds Housing Authority Disaster Recovery Special Revenue Funds Capital Improvements See Notes to Financial Statments.24 101 CITY OF LA QUINTA, CALIFORNIA Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2024 REVENUES Taxes Assessments Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Developer fees Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Community services Planning and development Public works Capital outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Debt Issuance Proceeds Total other financing sources (uses) Net change in fund balances Fund balances (deficit)-beginning Fund balances (deficit)-ending Total Total Nonmajor Governmental Funds Funds 2,031,365$ 78,926,323$ 988,238 988,238 - 2,820,613 6,641,847 21,243,975 - 1,494,422 1,746,509 12,247,458 - 408,125 779,387 879,431 3,634 1,499,269 12,190,980 120,507,854 907 7,601,346 100,817 25,374,535 1,946,056 12,785,671 316,246 7,590,589 4,803,686 7,117,820 57,549 28,482,857 - 24,452 32,495 32,495 7,257,756 89,009,765 4,933,224 31,498,089 3,325,049 19,078,824 (4,781,231) (20,544,474) - 49,487 (1,456,182) (1,416,163) 3,477,042 30,081,926 33,626,412 239,819,968 37,103,454$ 269,901,894$ See Notes to Financial Statments.25 102 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024 Amounts reported for governmental activities in the Statement of Activities are different because: Net change in fund balances - total governmental funds:30,081,926$ Capital outlay 25,136,457 Depreciation/amortization expense (8,964,547) Total adjustment 16,171,910 Earned but unavailable grant revenues (1,244,088) Total adjustment (1,244,088) Loss/(gain) on disposal of capital assets (197,658) Total adjustment (197,658) Leases issued (49,487) Principal payments 24,452 Total adjustment (25,035) 2,288,018 Compensated absences (31,507) Changes in pension liabilities and related deferred outflows and inflows of resources (1,457,534) Changes in OPEB liabilities and related deferred outflows and inflows of resources 407 Total adjustment (1,488,634) Change in net position of governmental activities 45,586,439$ Internal service funds provide services to other funds on a cost-reimbursement basis. The net revenue of certain activities of internal service funds is reported with governmental activities. Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. CITY OF LA QUINTA, CALIFORNIA Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period. Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase/(decrease) net position. Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. See Notes to Financial Statements 26 103 CITY OF LA QUINTA, CALIFORNIA Statement of Net Position Proprietary Funds June 30, 2024 Governmental Activities Internal Service Funds ASSETS Current assets: Cash and investments 1,449,251$ 14,036,942$ Receivables: Accrued interest 883 16,739 Prepaid costs - 120,799 Deposits 250,000 - Inventories 141,540 - Total current assets 1,841,674 14,174,480 Noncurrent: Capital assets, net of depreciation/amortization 42,987,413 14,444,270 Total noncurrent assets 42,987,413 14,444,270 Total assets 44,829,087 28,618,750 LIABILITIES Current liabilities: Accounts payable 440,445 1,290,549 Accrued liabilities - 2,057 Accrued interest 134 7,160 Deposits payable 35,500 - Leases 72,563 38,288 Subscriptions - 194,001 Total current liabilities 548,642 1,532,055 Noncurrent liabilities: Leases 51,296 11,272 Subscriptions - 88,308 Total noncurrent liabilities 51,296 99,580 Total liabilities 599,938 1,631,635 NET POSITION Net investment in capital assets 42,863,554 14,112,401 Unrestricted 1,365,595 12,874,714 Total net position 44,229,149$ 26,987,115$ Business-Type Activities Golf See Notes to Financial Statements.27 104 CITY OF LA QUINTA, CALIFORNIA Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2024 Governmental Activities Internal Service Funds OPERATING REVENUES Sales and service charges 4,965,124$ 7,008,048$ Total operating revenues 4,965,124 7,008,048 OPERATING EXPENSES Administration and general - 362,697 Contract services 4,974,292 1,991,319 Software and supplies - 947,382 Fuel and oil - 119,877 Repairs and maintenance 145,133 243,679 Depreciation and amortization 517,448 1,605,934 Total operating expenses 5,636,873 5,270,888 Operating income (loss)(671,749) 1,737,160 NONOPERATING REVENUES (EXPENSES) Interest Revenue 32,253 579,149 Interest Expense (6,188) (15,709) Other Income - 4,272 Gains (Losses) on Sale of Capital Asset - (16,504) Total nonoperating revenues (expenses)26,065 551,208 Income (loss) before transfers (645,684) 2,288,368 Transfers In 1,466,000 - Transfers Out - (350) Change in net position 820,316 2,288,018 Net position-beginning 43,408,833 24,699,097 Net position-ending 44,229,149$ 26,987,115$ Business-Type Activities Golf See Notes to Financial Statements.28 105 CITY OF LA QUINTA, CALIFORNIA Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2024 Governmental Activities Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users 4,965,124$ -$ Cash received from interfund services provided - 7,008,048 Cash payments to suppliers for goods and services (5,052,141) (2,846,469) Net cash provided by (used for) operating activities (87,017) 4,161,579 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 1,466,000 - Transfers to other funds - (350) Net cash provided by (used for) noncapital financing activities 1,466,000 (350) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (946,816) (2,042,916) Principal paid on capital debt (191,661) (213,365) Interest paid on capital debt (6,473) (26,377) Net cash provided by (used for) capital and related financing activities (1,144,950) (2,282,658) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 31,924 572,673 Net cash provided by (used for) investing activities 31,924 572,673 Net increase (decrease) in cash and cash equivalents 265,957 2,451,244 Cash and cash equivalents-beginning 1,183,294 11,585,698 Cash and cash equivalents-ending 1,449,251$ 14,036,942$ Business-Type Activities Golf See Notes to Financial Statements.29 106 CITY OF LA QUINTA, CALIFORNIA Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2024 Governmental Activities Internal Service Funds Business-Type Activities Golf RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Operating income (loss)(671,749)$ 1,737,160$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation/amortization expense 517,448 1,605,934 (Increase) decrease in inventories (29,258) - (Increase) decrease in prepaid items - 132,256 Increase (decrease) in accounts payable 96,542 685,811 Increase (decrease) in accrued liabilities - 418 Total adjustments 584,732 2,424,419 Net cash provided by (used for) operating activities (87,017)$ 4,161,579$ See Notes to Financial Statements.30 107 Private Purpose Trust Fund ASSETS Cash and cash equivalents 74,073$ 15,672,078$ Investments - Short-term - - Receivables: Accrued interest 88 241 Prepaid costs - 259,708 Due from other governments - 1,118,627 Restrcted assets Cash with fiscal agent - 1,670 Total assets 74,161 17,052,324 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding - 13,516,518 Total deferred outflows of resources - 13,516,518 LIABILITIES Accrued interest - 1,020,494 Long-term debt: Due in one year - 16,860,817 Due in more than one year - 152,244,008 Total liabilities - 170,125,319 NET POSITION Restricted for pensions 74,161 - Restricted for the dissolution of the former RDA - (139,556,477) Total net position 74,161$ (139,556,477)$ CITY OF LA QUINTA, CALIFORNIA Statement of Fiduciary Net Position Fiduciary Funds June 30, 2024 Pension (and Other Employee Benefit) Trust Fund See Notes to Financial Statements.31 108 Private Purpose Trust Fund ADDITIONS Investment earnings: Investment income 3,664 53,463 Total investment earnings 3,664 53,463 Taxes - 20,192,466 Miscellaneous 5,000 - Total additions 8,664 20,245,929 DEDUCTIONS Administrative expenses 12,833 31,591 Interest and fiscal charges - 4,887,006 Total deductions 12,833 4,918,597 Net increase (decrease) in fiduciary net position (4,169) 15,327,332 Net position-beginning 78,330 (154,883,809) Net position-ending 74,161$ (139,556,477)$ CITY OF LA QUINTA, CALIFORNIA Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2024 Pension (and Other Employee Benefit) Trust Fund See Notes to Financial Statements.32 109 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of La Quinta, California (City) was incorporated May 1, 1982, under the general laws of the State of California. In November 1996, the City became a charter City. The City operates under the Council – Manager form of government. The City provides many community services including public safety, highway and street maintenance, health and social services, cultural and leisure services, public improvements, planning and zoning services, and community development services. The accounting policies of the City conform to generally accepted accounting principles applicable to governments. As required by generally accepted accounting principles, these financial statements present the City and its component units, which are entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete. All of the City’s component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the City’s operations and so data from these units are reported with the interfund data of the primary government. The following organizations are considered to be component units of the City: City of La Quinta Public Financing Authority The La Quinta Public Financing Authority (Financing Authority) was established pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991, between the City and the Former Redevelopment Agency (now Successor Agency). The purpose of the Financing Authority is to provide financing necessary for the construction of various public improvements through the issuance of debt. Although the Financing Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Financing Authority and the management of the City has operational responsibility for the Financing Authority. The activities of the Financing Authority are recorded in the debt service fund. Separate financial statements of the Financing Authority are not prepared. City of La Quinta Housing Authority The La Quinta Housing Authority (Housing Authority) was established pursuant to California Housing Authorities Law (Health and Safety Code Sections 34200 et seq.) on September 15, 2009. The purpose of the Housing Authority is to provide safe and sanitary housing opportunities for La Quinta residents. Although the Housing Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Housing Authority and the management of the City has operational responsibility for the Housing Authority. The activities of the Housing Authority are recorded in the Housing Authority Special Revenue Fund. Separate financial statements of the Housing Authority are not prepared. Government-Wide and Fund Financial Statements The basic financial statements of the City are composed of the following:  Government-wide financial statements  Fund financial statements  Notes to the financial statements 33 110 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Government-Wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting City’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not properly included among program revenues are reported instead as general revenues. Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as other financing sources. Amounts paid to reduce long- term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as expenditures. Fund Financial Statements The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and proprietary funds. Fiduciary statements include financial information for fiduciary funds. Fiduciary funds of the city primarily represent assets held by the City in a custodial capacity for other individuals or organizations. Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business-type activities incorporate data from the government's enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The government-wide financial statements are reported using the economic resources measurement focus and accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred regardless of the related cash flows. Property taxes are recognized in the year they are levied. Grants and similar items are recognized as soon as all eligibility requirements imposed by the providers are met. 34 111 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Governmental Funds In the fund financial statements, governmental funds are presented using the current resources focus and modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a 60-day availability period. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed delivered tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non- exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses). Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered “available spendable resources”, since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. Proprietary Funds The City’s enterprise and internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets, all deferred outflows of resources, all liabilities, and all deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position. 35 112 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as expenditures. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Enterprise Funds are charges to customers for sales and services. Operating expenses for Enterprise Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Fiduciary Funds The pension and private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. Major Funds, Internal Service Funds and Fiduciary Fund Types The City’s major governmental funds are as follows: General Fund – This fund is the primary fund of the City and is used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Police Services, Public Works, and Community Services. Housing Authority – This fund accounts for the combined housing activities of the Housing Authority in Project Areas 1 and 2 which promotes and provides for quality housing. Revenues will be provided from the receipts and collections of rents, notes and loans. All monies in the Housing Authority must be used in accordance with the applicable housing-related provisions of the California Housing Authorities Law. Disaster Recovery Fund – To account for the use of one-time federal funding designed to deliver relief to American workers and aid in economic recovery in the wake of COVID-19. This Act was passed by Congress in 2021, to provide Coronavirus fiscal recovery funds to state and local governments. Capital Improvement Fund – This capital projects fund is used to account for the planning, design and construction of various capital projects throughout the City. The City’s major proprietary fund is as follows: Golf Course – This fund accounts for the activities of the SilverRock Golf Resort. Other fund types of the City are as follows: Special Revenue Funds – These funds account for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Capital Projects Funds – These funds account for financial resources that are restricted, committed, or assigned to expenditures for capital outlay. Debt Service Fund – This fund accounts for the servicing of long-term debt. 36 113 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Internal Service Funds Equipment Replacement Fund – This fund accounts for equipment and vehicle maintenance and replacement services provided to other departments on a cost-reimbursement basis. Information Technology Fund – This fund is used to account for the acquisition for computer equipment, maintenance, and services to support information systems within the City. Costs are reimbursed by the benefiting departments. Park Equipment and Facilities Fund – This fund is used to account for the purchase and replacement of City owned and operated park equipment and facilities. Costs are reimbursed by the benefiting departments. Insurance Fund – This fund accounts for City-wide insurances: liability, property, earthquake, workers compensation and risk management. Expenses are shared among departments on an allocation basis. Fiduciary Funds Pension (and Other Employee Benefits) Trust Fund – This fund accounts for the activities of the Supplemental Pension Savings Plan, which accumulates resources for pension benefit payments to qualified government employees. Private-Purpose Trust Fund – This fund accounts for the assets and liabilities of the Successor Agency to the Former Redevelopment Agency and its allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the Former Agency are paid in full and assets have been liquidated. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity Cash and Investments For financial reporting purposes, investments are adjusted to their fair value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held within the Section 115 trust and amounts held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s month end cash and investment balance. Cash and Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary fund’s share in the City’s cash and investment pool. Cash equivalents have an original maturity date of three months or less from the date of purchase. For purposes of the statement of cash flows, the entire balance of cash and investments on the combined balance sheet for the proprietary funds is considered cash and cash equivalents. Lease Receivable Lease receivable is recorded by the City as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the City charges the lessee. 37 114 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Restricted Section 115 Trust Cash and Investments All assets in the Section 115 Trust are irrevocably dedicated to funding obligations of the City’s pension beneficiaries, other post-employment beneficiaries or costs of administering the Trust. The funds are not considered plan assets of either the pension plan or OPEB plan and are therefore considered restricted assets of the City. Inventory Inventory is valued at cost using the first in/first out (FIFO) method. The City uses the consumption method of accounting for inventories. Prepaid Costs Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The City utilizes the consumption method, in which prepaid items are accounted for in the period that the benefit was received. Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their acquisition value at the date of the contribution. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of three years or more. Capital Assets include public domain (infrastructure) consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements and in the fund financial statements of the proprietary funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The following schedule summarizes capital asset useful lives: Lease assets are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. Leased assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to please the lease asset into service. Right to use leased assets are amortized over the shorter of the lease term or useful lives of the underlying asset using the straight-line method. The amortization period varies from 3 to 5 years. Subscription IT assets are recognized at the subscription commencement date and represent the City’s right to use the underlying IT asset for the subscription term. Subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any subscription incentives received from the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight line method. The amortization period varies from 3 to 5 years. Buildings and improvements 10-30 years Equipment and furniture 3-20 years Vehicles 5-10 years Infrastructure 10-50 years Software 5-10 years Right to use leases assets Shorter of useful life or lease or subscription term 38 115 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1 percent of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes that are received from the County within sixty days after year-end. Deferred Outflows/Inflows of Resources In addition to assets, the statements of net position and the governmental fund balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. Governmental activities recorded deferred outflows of resources related to pensions and other post-employment benefits. See Notes 9 and 11 for more information about deferred outflows of pensions and post-employment benefits, respectively. The Private Purpose Trust Fund- Successor Agency of the former RDA recorded deferred outflows of resources related to debt refunding. See Note 17 for more information on the deferred outflows of resources related to debt refunding. In addition to liabilities, the statements of net position and governmental fund balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has reported two items on the governmental fund balance sheet that qualify for reporting in this category. The first is unavailable revenues that were not received within the City’s availability period. These amounts are deferred and recognized as inflows of resources in the period that the amounts become available. At the government-wide statements, this item is eliminated and recognized as revenue in the period earned since “availability” of resources is not a criteria used in government-wide statements. The second item is a deferred inflow related to leases where the City is the lessor. The deferred inflows of resources related to leases is recognized on a straight line basis as an inflow of resources (revenue) over the term of the lease. Additionally, governmental activities recorded deferred inflows of resources related to pensions and OPEB. See Notes 9 and 11 for more information about deferred inflows of pensions and post-employment benefits, respectively. Compensated Absences Vacation and sick time are vested on a percentage based on number of years employed at the City. Maximum accumulation of sick and vacation is 40 and 60 days, respectively. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. If an employee terminates with a minimum of two years’ service, the employee is entitled to receive 25 percent of the value of his unused sick leave. The percentage increases by 25 percent for each five-year period until the employee is entitled to 100 percent of the value of their unused sick leave. This will occur upon the completion of twenty years of continuous employment. The General Fund resources are used to pay for the accumulated benefits to employees. Long-Term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Lien date January 1 Levy date July 1 Due dates November 1 and February 1 Collection dates December 10 and April 10 39 116 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments is discounted based on a borrowing rate determined by the City. Subscription liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments is discounted based on a borrowing rate determined by the City. Fund Balance In the fund financial statements, governmental funds report the following fund balance classifications: Nonspendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation. Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is by a resolution. Assigned includes amounts that are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. City Council is authorized to assign amounts to a specific purpose. The City Council authorizes assigned amounts for specific purposes pursuant to the policy-making powers granted through a resolution. Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific purposes. The general fund is the only fund that reports a positive unassigned fund balance. Fund Balance Flow Assumptions – governmental fund financial statements Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Net Position Flow Assumption – government-wide and proprietary fund financial statements Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. 40 117 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and deferred outflows/inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncements Adopted in the Current Year GASB Statement No. 100 – In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections—An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The City has not determined the effect on the financial statements. Effective in Future Fiscal Years The City is currently evaluating the potential impact of the following issued, but not yet effective, accounting standards. GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. The City has not determined the effect on the financial statements. GASB Statement No. 102 – In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a state or local government’s vulnerabilities due to the variety of risks they face. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024. The City has not determined the effect on the financial statements. GASB Statement No. 103 – In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025. The City has not determined the effect on the financial statements. GASB Statement No. 104 – In September 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. The objective of this statement is to require certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class. 41 118 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 2: CASH AND INVESTMENTS Cash and investments as of June 30, 2024, are classified in the accompanying financial statements as follows: Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Investments Authorized by the City Section 115 Trust Investments of the Trust are governed by the provisions of the City of La Quinta Section 115 Trust Agreement, rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held in the Section 115 Trust include Equity and Fixed Income Mutual Funds. The strategic range allowed for Equity and Fixed Income Mutual Funds is 20%-40% and 50%-80%, respectively. There are no limitations on the maximum amount that can be invested in one issuer or the maximum maturity of an investment. . Statement of Net Position Cash and investments 268,178,636$ Restricted cash and investments 5,666,575 Statement of Fiduciary Net Position Cash and investments 15,746,151 Cash and investments with fiscal agent 1,670 Total cash and investments 289,593,032$ Cash and investment as of June 30, 2024, consist of the following: Cash on hand 3,300$ Deposits with financial institutions 44,553,114 Investments 245,036,618 Total cash and investments 289,593,032$ Investment Types Maximum Maturity Maximum Percentage Allowed Maximum Investment U.S. Treasury Obligations 5 years N/A N/A U.S. Agency Securities 5 years N/A 20 million Local Agency Bonds 5 years N/A N/A California Local Agency Obligations 5 years N/A N/A Commercial Paper 270 days 40% 10% of any single issuer Certificates of Deposit 5 years 30% 250,000 Negotiable Certificates of Deposits 5 years 30% 250,000 Corporate Notes 5 years 30% 5 million Investment Pools (Riverside County Pool) N/A N/A N/A Money Market Mutual Funds N/A 20% 10% of City funds per fund Local Agency Investment Fund (LAIF) N/A N/A LAIF Limit Investment Agreements 92 days 20% N/A 42 119 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 2: CASH AND INVESTMENTS (CONTINUED) Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short term and long-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity: Investment Type Total 1 year Or Less 1 to 3 years 3 to 5 years Certificates of Deposit 38,277,993$ 11,183,442$ 12,789,987$ 14,304,564$ Federal agency securities Federal Farm Credit Bank 19,024,300 3,922,250 2,299,920 12,802,130 Federal National Mortgage Association 12,736,025 3,959,185 7,781,510 995,330 Federal Home Loan Mortgage Corp 9,006,243 960,380 5,053,833 2,992,030 Federal Home Loan Bank 19,195,385 4,711,526 9,598,270 4,885,589 U.S. Treasurey Notes 43,344,770 9,430,285 16,255,513 17,658,973 Corporate Notes 2,429,645 - 464,065 1,965,580 Money Market Mutual Funds 5,768,589 5,768,589 - - Local Agency Investment Fund (LAIF)21,909,996 21,909,996 - - CAMP 52,022,811 52,022,811 - - Riverside County Pool 15,652,616 15,652,616 - - Section 115 Trust Equity Mutual Funds 5,666,575 5,666,575 - - Held by Fiscal Agent Money Market Mutual Funds 1,670 1,670 - - Total 245,036,618$ 135,189,325$ 54,243,098$ 55,604,196$ Remaining Maturity (in Years) 43 120 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 2: CASH AND INVESTMENTS (CONTINUED) Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City's investment policy limits investments in commercial paper and money market mutual funds to those rated the highest rating as rated by Moody’s or Standard and Poor’s (S&P). Presented below are the S&P ratings as of year-end: Investments in any one issuer that represent 5 percent or more of total City’s investments are as follows: Disclosures Relating to Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City utilizes delivery versus payment for investment purchases, which requires investments to be received prior to delivery of cash payment. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits, or by letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105 percent of the secured public deposits. Investment Type Total Aaa Aa Federal Agency Securities 59,961,953$ -$ 59,961,953$ Corporate Notes 2,429,645 464,065 1,965,580 CAMP 52,022,811 52,022,811$ Money Market Mutual Funds 5,768,589 5,768,589 - Total 120,182,998 58,255,465$ 61,927,533$ Exempt from Credit Risk Disclosure: U.S. Treasury Notes 43,344,770 Not Rated: Certificates of Deposit 38,277,993 Local Agency Investment Pool 21,909,996 Riverside County Pool 15,652,616 Section 115 Trust: Equity Mutual Funds 5,666,575 Held by Fiscal Agent: Money Market Mutual Funds 1,670 Total Investments 245,036,618$ Issuer Investment Type Reported Amount Percent of Portfolio Federal National Mortgage Association Federal Agency Securities 12,736,025$ 5.20% Federal Farm Credit Bank Federal Agency Securities 19,024,300 7.76% Federal Home Loan Bank Federal Agency Securities 19,195,385 7.83% 44 121 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 2: CASH AND INVESTMENTS (CONTINUED) As a public funds depository, BMO Bank N.A. maintains a public funds deposit collateralization program that is designed to comply with all applicable statutes and regulations governing public funds deposits, including pledge and perfection of collateral. Accounts holding public funds are labeled as such and trigger collateralization. Collateral needs are met based on the prior day close of business. However, same-day collateral requests may be accommodated upon request. Investment in Riverside County Pool The City is a voluntary participant in the Riverside County Pooled Investment Fund that is regulated by California Government Code Section 53646 and managed by the Riverside County Treasurer. The City’s investment in this pool is reported in the accompanying financial statements of net position and prepared using the accrual basis of accounting. Investments are reported at fair value. The balance available for withdrawal is based on the accounting records maintained by the County. The Riverside County Pooled Investment Fund is not registered with the Securities and Exchange Commission and is not rated. Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relations to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Deposits and withdrawals are made on the basis of $1 and not fair value. Accordingly, the City’s measurement of fair value of its investment with LAIF is based on uncategorized inputs, not defined as a level 1, level 2, or level 3 input. LAIF is not registered with the Securities and Exchange Commission and is not rated. Investment in California Asset Management Program The City is a voluntary participant in the California Asset Management Program (CAMP) that is regulated by the California Government Code Section 53601 (p) and managed by a Board of Trustees comprised of finance directors and treasurers of California public agencies that are members of the Joint Powers Authority. The City’s investment in this pool is reported in the accompanying financial statements of net position and prepared using the accrual basis of accounting. Investments are reported at net asset value on the basis of $1 and not fair value, accordingly, CAMP is measured on uncategorized inputs similar to LAIF. The balance available for withdrawal is based on the accounting records maintained by CAMP. CAMP is not registered with the Securities and Exchange Commission. 45 122 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 2: CASH AND INVESTMENTS (CONTINUED) Fair Value Measurements The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2 are valued using the market approach and quoted market prices. The City has the following recurring fair value measurements as of June 30, 2024: NOTE 3: NOTES RECEIVABLE In September 1994, the former redevelopment agency sold certain real property to LINC Housing for $2,112,847. The property was used to construct single-family homes and rental units to increase the City's supply of low- and moderate-income housing. The note bears interest at 6 percent per annum and is due in full on June 15, 2029. On February 1, 2012, this receivable was transferred to the Housing Authority, which took over the housing function of the former redevelopment agency upon dissolution. As of June 30, 2024, the outstanding principal balance is $2,035,388 and the outstanding interest is $3,498,652. In February 2011, the former redevelopment agency entered into Disposition and Development Agreement with Coral Mountain Partners L.P. (“Coral Mountain”) to fund up to $29,000,000 for the construction of a low- and moderate-income apartment complex with an estimated completion date of the apartment complex of March 2014. The former redevelopment agency’s $29,000,000 loan is evidenced by a Promissory Note executed by Coral Mountain (“Note”). Interest on the outstanding note amount will bear simple interest of 1 percent. Principal and interest will be repaid on or before May 1st of each year from annual residual receipts as defined in the Note once the project is completed and may be repaid early if the property is refinanced, or if the property is transferred to another entity. On February 1, 2012, this receivable was transferred to the Housing Authority which took over the housing function of the former redevelopment agency upon dissolution. As of June 30, 2024, the outstanding principal balance is $20,357,692 and the outstanding interest balance is $2,185,268. Other notes receivable as of February 1, 2012, included in the Housing Authority which took over the housing function of the former redevelopment agency upon dissolution totaled $21,297 at June 30, 2024. Total Level 1 Level 2 Investments U.S. Treasury 43,344,770$ 43,344,770$ -$ Federal Agency Securities 59,961,953 - 59,961,953 Corporate Notes 2,429,645 - 2,429,645 Certificates of Deposit 38,277,993 - 38,277,993 Total leveled investments 144,014,361 43,344,770 100,669,591 Investments with uncategorized inputs Money Market Mutual Funds 5,768,589 Local Agency Investment Fund 21,909,996 CAMP 52,022,811 Riverside County Pool 15,652,616 Section 115 Trust Equity Mutual Funds 5,666,575 Held by Fiscal Egent Money Market Mutual Funds 1,670 Total investments 245,036,618$ 46 123 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 4: CAPITAL ASSETS Capital asset activity for governmental activities for the year ended June 30, 2024, is as follows: Depreciation and amortization expense was charged to the following functions in the Statement of Activities: Balance Balance July 1, 2023 Additions Deletions Transfers June 30, 2024 Governmental activities: Capital assets, not being depreciated/amortized Land 83,717,732$ 3,584,438$ (21,600)$ -$ 87,280,570$ Right of way 286,074,348 - - - 286,074,348 Construction-in-progress 8,263,007 21,063,928 - (3,040,998) 26,285,937 Total capital assets, not being depreciated/amortized 378,055,087 24,648,366 (21,600) (3,040,998) 399,640,855 Capital assets, depreciable Buildings and improvements 81,413,491 1,292,809 (61,000) - 82,645,300 Equipment and furniture 3,602,381 703,841 (195,598) - 4,110,624 Vehicles 2,266,095 253,304 (140,273) - 2,379,126 Infrastructure 268,323,682 25,155 - 3,040,998 271,389,835 Right to use lease and subscription assets Building 78,226 65,776 (78,226) - 65,776 Equipment 38,118 49,487 (38,118) - 49,487 Vehicles 121,958 - (100,065) - 21,893 Subscriptions 1,061,781 140,635 (184,138) - 1,018,278 Total right to use lease and subscription assets 1,300,083 255,898 (400,547) - 1,155,434 Total depreciable capital assets 356,905,732 2,531,007 (797,418) 3,040,998 361,680,319 Less accumulated depreciation Buildings and improvements 45,058,676 2,424,405 - - 47,483,081 Equipment and furniture 2,454,644 352,163 (195,598) - 2,611,209 Vehicles 984,539 394,614 (22,237) - 1,356,916 Infrastructure 152,627,748 6,917,199 - - 159,544,947 Total accumulated depreciation 201,125,607 10,088,381 (217,835) - 210,996,153 Less right to use lease and subscription assets accumulated amortization Building 67,363 32,790 (78,228) - 21,925 Equipment 21,582 10,109 (24,587) - 7,104 Vehicles 99,714 17,472 (100,065) - 17,121 Subscriptions 469,460 421,729 (184,141) - 707,048 Total accumulated amortization 658,119 482,100 (387,021) - 753,198 Total accumulated depreciation and amortization 201,783,726 10,570,481 (604,856) - 211,749,351 Total capital assets being depreciated/amortized, net 155,122,006 (8,039,474) (192,562) 3,040,998 149,930,968 Total Governmental Activities 533,177,093$ 16,608,892$ (214,162)$ -$ 549,571,823$ General governments 3,209,394$ Public safety 3,882,290 Planning and development 658,780 Community services 885,170 Public works 328,913 Internal service funds 1,605,934 10,570,481$ 47 124 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 4: CAPITAL ASSETS (CONTINUED) Capital asset activity for business-type activities for the year ended June 30, 2024, is as follows: Depreciation and amortization expense was charged to following functions in the Statement of Activities: NOTE 5: CHANGES IN LONG-TERM LIABILITIES The following is a summary of changes in governmental long-term liabilities of the City for the fiscal year ended June 30, 2024: Compensated absences have been typically liquidated from the General Fund. Balance Balance July 1, 2023 Additions Deletions June 30, 2024 Business-Type activities Capital assets, not being depreciated Land 39,712,955$ -$ -$ 39,712,955$ Capital assets, being depreciated Buildings and improvements 6,636,465 - - 6,636,465 Equipment and furniture 1,670,293 - - 1,670,293 Vehicles - 946,816 - 946,816 Software 20,255 - - 20,255 Total capital assets, being depreciated 8,327,013 946,816 - 9,273,829 Right to use lease assets, being amortized Equipment 796,621 - (313,547) 483,074 Total depreciable capital assets 9,123,634 946,816 (313,547) 9,756,903 Less accumulated depreciation for Buildings and improvements 4,152,370 214,544 - 4,366,914 Equipment and furniture 1,620,383 33,443 - 1,653,826 Vehicles - 79,473 79,473 Software 20,255 - - 20,255 Total accumulated depreciation 5,793,008 327,460 - 6,120,468 Accumulated amortization, equipment 485,536 189,988 (313,547) 361,977 Total accumulated depreciation and amortization 6,278,544 517,448 (313,547) 6,482,445 Total capital assets being depreciated/amortized, net 2,845,090 429,368 - 3,274,458 Total Business - Type Activities 42,558,045$ 429,368$ -$ 42,987,413$ Golf Course 517,448$ Balance at July 1, 2023 Additions Deletions Balance June 30, 2024 Due within One Year Governmental Activities Compensated absences payable 1,154,090$ 1,185,597$ 1,154,090$ 1,185,597 305,117$ Leases 53,111 38,684 - 91,795 47,667 Financed purchases 551 - 551 - - Subscription IT liabilities 495,674 140,635 354,000 282,309 194,001 1,703,426$ 1,364,916$ 1,508,641$ 1,559,701 546,785$ 48 125 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 5: CHANGES IN LONG-TERM LIABILITIES (CONTINUED) Leases The City has entered into multiple lease agreements for buildings, vehicles, and equipment. The City is required to make principal and interest payments through 2025. The lease agreements have interest rates between 1.5% to 4% based on the City’s estimated incremental borrowing rate at the inception of the lease. As of June 30, 2024, the net right to use asset balance is $91,006 and the lease liability balance is $91,765. The current year amortization and interest expense associated with the lease activities was $60,371 and $506. Remaining principal and interest payments on the lease are as follows: Subscription IT Liabilities The City has entered into several Subscription-Based Information Technology Arrangements (SBITAs) for virtual permitting software, employee hiring subscription, website design & implementation software, HR and finance software, and Microsoft office software. The City is required to make principal and interest payments through June 2027. The subscription liability was valued using discount rates between 3.87% and 4.14% based on the City incremental borrowing rate at the inception of the subscriptions. As of June 30, 2024, the net right to use asset balance is $311,230 and the lease liability balance is $282,309. The current year amortization and interest expense associated with the lease activities was $421,729 and $10,759. Principal and interest payments on the SBITAs are as follows:  The following is a summary of changes in business-type activities long-term liabilities of the City for the fiscal year ended June 30, 2024: Year Ending June 30, Principal Interest 2025 47,667$ 2,347$ 2026 20,986 1,012 2027 10,060 608 2028 10,419 247 2029 2,663 3 91,795$ 4,217$ Year Ending June 30, Principal Interest 2024 194,001$ 11,199$ 2025 43,292 3,516 2026 45,016 1,792 282,309$ 16,507$ 49 126 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 5: CHANGES IN LONG-TERM LIABILITIES (CONTINUED) The City Golf Course fund has entered into multiple lease agreements for equipment. The City is required to make principal and interest payments through 2027. The lease agreements have interest rates between 1.5% to 4% based on the City’s estimated incremental borrowing rate at the inception of the lease. As of June 30, 2024, the net right to use asset balance is $121,097 and the lease liability balance is $123,859. The current year amortization and interest expense associated with the lease activities was $189,988 and $6,396. Remaining principal and interest payments on the leases are as follows: NOTE 6: Leases – Lessor Activities The City has accrued receivable for three land leases. The remaining receivable for these leases was $1,334,093 for the year ended June 30, 2024. Deferred inflows related to these leases were $1,221,045 as of June 30, 2024. Interest revenue recognized on these leases was $42,419 for the year ended June 30, 2024. Principal receipts of $98,262 were recognized during the fiscal year. The interest rate on the leases was 3 percent. Final receipt is expected in fiscal year 2043. NOTE 7: INTERFUND RECEIVABLES AND PAYABLES A. Investments Authorized by the California Government Code and the City’s Investment Policy The composition of current interfund receivable and payable balances is as follows: Interfund balances reflect short term borrowings for deficit cash balances at June 30, 2024. Year Ending June 30, Principal Interest 2025 72,563$ 2,821$ 2026 32,028 1,417 2027 19,268 241 123,859$ 4,479$ Year Ending June 30, Principal Interest 2025 105,696$ 39,428$ 2026 113,401 36,077 2027 121,478 32,485 2028 129,866 28,716 2029 138,809 24,530 2030-2034 299,385 80,474 2035-2039 205,691 50,535 2040-2044 219,767 14,299 1,334,093$ 306,544$ 50 127 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 8: INTERFUND TRANSFERS a. $9,585,185 was transferred from the General Fund to the Capital Improvement Fund to fund various capital projects. b. $4,781,231 was transferred to the Capital Improvement Fund from various non-major funds to support various capital project operations and expenses. c. $3,325,049 was transferred from the General Fund to various non-major funds to support various administrative operations and expenses within the City. d. $1,466,000 was transferred from the General Fund to the Golf Course Fund to subsidize operations. e. $1,387,009 was transferred from the General Fund to the Housing Authority Fund to support administrative operations. NOTE 9: DEFINED BENEFIT PENSION PLAN Miscellaneous Plan Plan Description All qualified employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, a cost- sharing multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under these plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provision, assumption and membership information. Copies of the report can be found on the CalPERS website. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. General Fund Non-major Governmental Internal Service Funds Total Housing Authority 1,387,009$ -$ -$ 1,387,009$ Capital Improvements 9,585,185 4,781,231 350 14,366,766 Nonmajor Governmental 3,325,049 - - 3,325,049 Golf Course Fund 1,466,000 - - 1,466,000 Total 15,763,243$ 4,781,231$ 350$ 20,544,824$ Transfers In Transfer Out 51 128 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 9: DEFINED BENEFIT PENSION PLAN (CONTINUED) Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plan’s provisions and benefits in effect at June 30, 2024 are summarized as follows: Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions are determined annually on an actuarial basis as of June 30th by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contributions to the pension plan were $1,683,062 for the year ended June 30, 2024. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2024, the City reported a liability of $2,699,409 for its proportionate share of the collective net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022.The City’s proportion of the collective net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportion of the collective net pension liability as of June 30, 2023 and 2024 is as follows: For the year ended June 30, 2024, the City recognized pension expense of $3,140,594. Tier I Tier II PEPRA Before On or After On or After Hire date November 1, 2012 November 1, 2012 January 1, 2013 Benefit formula 2.5% @55 2% @60 2% @62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 and up 50 and up 52 and up Monthly benefits, as a % of eligible compensation 2% to 2.5%2% to 2.5%1% to 2% Required employees contributions rates 8.00%7.00%6.75% Required employer contributions rates 12.200%8.650%7.590% Proportion - June 30, 2023 0.1173% Proportion - June 30, 2024 0.0216% Change - Increase (Decrease)-0.0957% 52 129 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 9: DEFINED BENEFIT PENSION PLAN (CONTINUED) At June 30, 2024, the City reported deferred outflows and deferred inflows of resources related to pensions as follows: The $1,683,062 reported as deferred outflows of resources resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2023 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2022 total pension liability. The total pension liability in the June 30, 2022 actuarial valuation was determined using the following actuarial methods and assumptions: Deferred Outlows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 1,683,062$ -$ Changes in assumptions 162,975 - Differences between expected and actual experience 137,900 21,392 Net difference between projected and actual earnings on pension plan investments 437,058 - Change in employer's proportion - 7,671,120 Difference between the city's contribution and proportionate share of contributions 8,940,584 12,815 Total 11,361,579$ 7,705,327$ Deferred Outflows/ Year Ended June 30, (Inflows) of resources 2025 495,553$ 2026 583,536 2027 881,561 2028 12,540 Total 1,973,190$ Miscellaneous Valuation Date June 30, 2022 Measurement Date June 30, 2023 Actuarial Cost Method Entry - Age Normal Cost Method Discount Rate 6.90% Inflation 2.30% Projected Salary Increase Varies by Entry Age and Service Mortality Rate Table Derived using CalPERS' Membership Data for all Fund Post - retirement benefit increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies 53 130 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 9: DEFINED BENEFIT PENSION PLAN (CONTINUED) Discount Rate The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the City’s contributions will be made at rates equal to the difference between actuarially determined contributions rates and the employee rate. Based on those assumptions, each pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. These geometric rates of return are summarized in the following table: Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net position liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percent point lower or 1 percent higher than the current rate: Pension Plan Fiduciary Net Position Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Strategic Allocation Real Return Global equity - cap weighted 30.00% 4.45% Global equity -non-cap-weighted 12.00% 3.84% Private equity 13.00% 7.28% Treasury 5.00% 0.27% Mortgage-backed Securities 5.00% 0.50% Investment Grade Corporates 10.00% 1.56% High Yield 5.00% 2.27% Emergind Market Debt 5.00%2.48% Private equity 5.00%3.57% Real Assets 15.00%3.21% Leverage -5.00%-0.59% Total 100% Asset Class Discount Rate -1% (5.90%) Current Discount Rate (6.90%) Discount Rate +1% (7.90%) Net Pension Liability (Asset) 11,295,551$ 2,699,409$ (4,375,955)$ 54 131 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 10: DEFINED CONTRIBUTION PLAN The Supplemental Pension Savings Plan is a defined contribution pension plan established by the City to provide retirement excess benefits to general employees of the City. At June 30, 2024, there was one plan member. There are no required contributions by plan members. During the 2023-2024 fiscal year the City made no contributions to fund the Supplemental Pension Savings Plan NOTE 11: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) Plan Description The City’s Retiree Health Plan is a single-employer defined benefit healthcare plan. The City contributes on behalf of all eligible retirees’ $149/month for the calendar year 2022 and $151/month for calendar year 2023, increased in all future years according to the rate of medical inflation. These benefits are provided per contract between the City and the employee associations. A separate financial report is not available for the plan. The City participates in the California Employers’ Retiree Benefit Trust (CERBT) for the purpose of accumulating funding for OPEB obligations. The CERBT is a Section 115 Trust and is an agent multiple employer plan for those electing to prefund OPEB obligations. Benefits Provided Retirees are eligible for medical benefits if they retire at age 50+, have 5+ years of service within CalPERS, and were enrolled in the CalPERS health system at retirement. The City provides PEMHCA minimum for each subscriber, regardless of elected coverage tier. Employees Covered by Benefit Terms At June 30, 2022, the most recent valuation date, the following current and former employees were covered by the benefit terms of the plan: Contributions The City makes contributions to the plan based on an actuarially determined rate. Employees are not required to contribute to the plan. For the year ended June 30, 2024, the City’s cash contributions to the plan including the implied subsidy were $56,838. Active employees 97 Inactive employees or beneficiaries currently receiving benefits 16 Total 113 55 132 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 11: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED) Net OPEB Liability/(Asset) Actuarial Assumptions – The net OPEB liability/(asset) in the June 30, 2022, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Mortality rates were based on the CalPERS November 2021 Experience Study for Public Agency Miscellaneous Plans. Changes of Assumptions Healthcare trend rates were decreased from a rate of 6.7% decreasing gradually to an ultimate rate of 3.8% to 6.5% decreasing gradually to an ultimate rate of 3.73% for the valuation as of June 30, 2022. Discount Rate The discount rate used to measure the total OPEB liability was 5.50 percent for the Plan. The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates. Changes in Net OPEB Asset: The changes in the net OPEB liability/(asset) for the Plan as of June 30, 2024 are as follows: Actuarial Cost Method Entry-Age Normal Cost Method Actuarial Assumptions Discount Rate 5.50% Inflation 2.30% Investment Rate of Return 5.50% Mortality (1) Healthcare Trend Rate 6.5% for fiscal year 2023, gradually decreasing to an ultimate rate of 3.73% in fiscal year 2075. (1) Derived using CalPERS Membership Date for all Funds Total OPEB Liability Plan Fiduciary Net Position Net OPEB Liability/(Asset) Balance at June 30, 2023 1,415,511$ 1,792,999$ (377,488)$ Changes in the year Service cost 85,632 - 85,632 Interest 80,987 - 80,987 Differences between expected - - - and actual experience Changes of assumptions (1,901) - (1,901) Net investment income - 63,830 (63,830) Employer contributions - 58,070 (58,070) Benefit payments (58,070) (58,070) - Administrative expense - (514) 514 Net changes 106,648 63,316 43,332 Balance at June 30, 2024 1,522,159$ 1,856,315$ (334,156)$ 56 133 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 11: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED) Sensitivity of the Net OPEB Asset to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.50 percent) or 1-percentage-point higher (6.50 percent) than the current discount rate: For the year ended June 30, 2024, the City recognized OPEB expense of $56,431. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: The $56,838 reported as deferred outflows of resources related to OPEB resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability for the fiscal year ending June 30, 2025. Other amounts reported as deferred outflows or deferred inflows of resources related to OPEB will be recognized in as OPEB expense as follows: Discount Rate -1% (4.50%) Current Discount Rate (5.50%) Discount Rate +1% (6.50%) Net OPEB Liability/(Asset) (139,708)$ (334,156)$ (496,807)$ 1% Decrease (5.5% decreasing to 2.7%) Current Trend Rate (6.5% decreasing to 3.7% 1% Increase (7.5% decreasing to 4.7%) Net OPEB Liability/(Asset)(544,608)$ (334,156)$ (70,984)$ Deferred Outflows of Resources Deferred Inflows of Resources OPEB contributions subsequent to measurement date 56,838$ -$ Changes in assumptions 47,731 24,053 Difference between expected and actual liability 86,518 500,146 Net difference between projected and investment earnings 155,087 - Total 346,174$ 524,199$ Deferred Outflows/ Year Ended June 30, (Inflows) of resources 2025 (8,991)$ 2026 (10,909) 2027 37,625 2028 (38,500) 2029 (45,357) Thereafter (168,731) Total (234,863)$ 57 134 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 12: SECTION 115 TRUST In the fiscal year 2019, the City Council approved the creation of a Section 115 Trust Agreement with U.S Bank National Association, and Public Agency Retirement Services (PARS), Trust Administrator. The Section 115 Trust was established as a means to set aside monies to fund the City’s pension and OPEB obligations. Contributions to the Section 115 Trust are irrevocable, the assets are dedicated to providing benefits to plan members, and the assets are protected from creditors of the City. The purpose of the creation of the section 115 Trust was to address the City’s pension obligations by accumulating assets to reduce the net pension liability. However, in accordance with generally accepted accounting principles, the assets in the Section 115 Trust are not considered to have present service capacity as plan assets and are therefore considered restricted assets of the City rather than pension plan assets. Accordingly, the Section 115 Trust’s assets are recorded as restricted for pension benefits in the City’s General Fund rather than assets of the pension plan during the measurement of the net pension liability. The assets held in trust will be considered pension plan assets at the time they are transferred out of the Trust into the pension plan. The balance in the Trust for the fiscal year ended June 30, 2024 was $5,666,575. The City currently funds its OPEB obligations through the CERBT program, and although the Section 115 Trust is able to accept OPEB funds, the City has no immediate plans to fund OPEB obligations through the Section 115 Trust. NOTE 13: RISK MANAGEMENT Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of La Quinta is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 126 California public entities and is organized under a joint powers’ agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. Self-Insurance Programs of the CJPIA Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self- insurance programs is based on actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. Primary Liability Program Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/ 58 135 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 13: RISK MANAGEMENT (CONTINUED) Workers’ Compensation Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2023-24 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. Purchased Insurance Property Insurance – The City of La Quinta participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of La Quinta property is currently insured according to a schedule of covered property submitted by the City of La Quinta to the Authority. City of La Quinta property currently has all-risk property insurance protection in the amount of $88,131,428. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. Special Event Tenant User Liability Insurance – The City of La Quinta further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of La Quinta according to a schedule. The City of La Quinta then pays for the insurance. The insurance is facilitated by the Authority. Earthquake and Flood Insurance – The City of La Quinta purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of La Quinta property currently has earthquake protection in the amount of $0. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. Crime Insurance – The City of La Quinta purchases crime insurance coverage in the amount of $1,000,000 with a $5,000 deductible. The fidelity coverage is provided through the Authority. Pollution Legal Liability Insurance – The City of La Quinta participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of La Quinta. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2023-2024. 59 136 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 14: FUND BALANCE Fund Balance Classifications At June 30, 2024, the governmental funds report the following fund balance classifications: Fund Balance Commitments In the governmental fund financial statements, committed reserves include: Natural Disaster Emergency Reserves: These funds may be utilized for the preparation, recovery, and restoration of services before, during and/or after a natural disaster (such as flood, earthquake, etc.) as defined by City Code 2.20.020. The target of $15,000,000 was determined by conducting a risk analysis of all City assets, insurance levels, and potential federal/state contributions towards disaster recovery efforts. For the year ended June 30, 2024, the City has committed $15,000,000 to this category. Economic Downturn Reserves: These funds may be used in such instances as a declared national, state, or regional recession; loss of a major (top 10) revenue-generating business; or a natural disaster resulting in a significant decline in revenues. These reserves may also be used if overall revenues decrease, or expenditures increase more than 10% of the previous year’s actual revenues or expenditures. The target of $13,000,000, was based on a long-term analysis of the revenue and expenditure flows (which included the financial impacts of the Great Recession, the loss of Redevelopment Agencies, and the COVID-19 pandemic) as well as the application of the Consumer Price Index (CPI) increases to the original base target. For the year ended June 30, 2024, the City has committed $13,000,000 to this category. Total Total Housing Disaster Capital Nonmajor Governmental General Authority Recovery Improvement Funds Funds Nonspendable Land held for resale 5,403,652$ -$ -$ -$ -$ 5,403,652$ Prepaid costs 170,577 - - - 500 171,077 Advances to other funds 17,123,777 - - - - 17,123,777 Total nonspendable 22,698,006 - - - 500 22,698,506 Restricted General government - - 441,350 - - 441,350 Public Safety - - - - 845,858 845,858 Community services - - - - 14,634,322 14,634,322 Planning and development - 24,755,830 - - 4,398,228 29,154,058 Public works - - - - 7,512,849 7,512,849 Capital projects - - - - 11,626,051 11,626,051 Section 115 Trust 5,666,575 - - - - 5,666,575 Total restricted 5,666,575 24,755,830 441,350 - 39,017,308 69,881,063 Committed Natural Disaster Reserve 15,000,000 - - - - 15,000,000 Economic Downturn Reserve 13,000,000 - - - - 13,000,000 Cash Flow Reserve 5,000,000 - - - - 5,000,000 Capital Replacement Reserve 12,000,000 - - - - 12,000,000 Carryovers 900,000 - - - - 900,000 Total committed 45,900,000 - - - - 45,900,000 Assigned Public safety 15,652,616 - - - - 15,652,616 Sales Tax Reserve 32,985,374 - - - - 32,985,374 Capital projects 21,666,520 - - - - 21,666,520 Total assigned 70,304,510 - - - - 70,304,510 Unassigned 65,216,616 - - (2,184,447) (1,914,354) 61,117,815 Total fund balances (deficits)209,785,707$ 24,755,830$ 441,350$ (2,184,447)$ 37,103,454$ 269,901,894$ 60 137 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 14: FUND BALANCE (CONTINUED) Cash Flow Reserves: These funds are maintained to have adequate cash on hand to account for the uneven receipt of revenue. For example, property tax accounts for a large percentage of annual revenue, the bulk of which is not remitted until December and May of each year. The target for the Cash Flow Reserves is 10% of each year’s revenue budget, or a minimum of $5,000,000. For the year ended June 30, 2024, the City has committed $5,000,000 to this category. Capital Improvement Reserves: These funds may be used for capital assets and infrastructure rehabilitation, improvement, and replacement. The target of $12,000,000 is based on annual depreciation of assets and may be adjusted by the Consumer Price Index (CPI). For the year ended June 30, 2024, the City has committed $12,000,000 to this category. Carryovers: These funds are items appropriated in a prior fiscal year that have yet to be spent. Carryovers committed to Fiscal Year 2023-2024 totaled $900,000 at June 30, 2024. Assigned Fund Balance The City has the following assigned fund balance shown on the balance sheet: Assigned to public safety represents property tax accumulated and withheld by the County of Riverside to be used for fire protection, disaster preparedness, fire prevention, rescue, hazardous materials mitigation, technical rescue response, medical emergency services, and public service assists. The assigned fund balance related to this item as of June 30, 2024 is $15,652,616. Assigned to capital projects is comprised of carryover balances for capital projects. The capital project carryover balances as of June 30, 2024 are $21,666,520. Accumulated resources related to the City’s sales tax Measure G is $32,985,374 as of June 30, 2024. Deficit Fund Balance At June 30, 2024, the following funds had deficit fund balances: NOTE 15: GOLF COURSE MANAGEMENT AGREEMENT The City entered into an agreement with Landmark Golf Management LLC (operator) to manage the golf operations at the city-owned SilverRock Golf Course. The Agreement entered into on April 6, 2004, sets forth a five-year term commencing upon the completion of the golf course. On January 14, 2005, the golf course was deemed to be complete, and management was turned over to the operator. The contract has been amended and extended numerous times with the current contract expiring June 30, 2024. The contract provides that the operator will manage the day-to-day operations, hire employees, provide golf pro shop and food services, manage all marketing and promotional activities, prepare the annual budget report for Council consideration, and manage accounting and payroll functions. In addition to the annual payment for management services, the City has advanced the operator $250,000 to pay for golf course expenses. Twice a month the operator submits a request for reimbursement to the City to replenish the City’s advance. In addition, the agreement sets forth the establishment of a capital reserve fund of 2 percent of green fees. For the fiscal year ending June 30, 2024, the Golf Course had a loss before transfers of $645,684. Major Capital Projects Fund Capital Improvement (2,184,447) Nonmajor Special Revenue Funds Quimby (735,460) Housing Grant (60,267) Nonmajor Capital Projects Fund Library Development (1,118,627) 61 138 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 16: CONSTRUCTION COMMITMENTS Various construction projects were in progress at June 30, 2024. Projects costs are paid out of the capital improvements fund. The following material construction commitments, for which funds have been encumbered, existed at June 30, 2024, with an estimated cost to complete. NOTE 17: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of La Quinta that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 3, 2012, the City Council elected to become the Successor Agency for the Former Redevelopment Agency (‘Former Agency”) in accordance with the Bill as part of City resolution number 2012-002. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the Former Agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. The Successor Agency to the Former Agency is reported as a fiduciary fund (private purpose trust fund). Project Name Project Number Contract Amount Expenditures to date as of June 30, 2024 Remaining Commitments Capital Improvement Fund Dune Palms Bridge Improvement 111205 29,756,245$ (19,034,401)$ 10,721,844$ Madison Street Median Landscape Conversion 151604 1,300,000 (635,863) 664,137 La Quinta Landscape renovation Improvement 201603 9,963,148 (7,709,098) 2,254,050 Corporate Yard Admin Offices & Crew 201805 1,591,013 (58,598) 1,532,415 Village Art Plaza Promenade & Cultural Campus 201901 4,810,000 (572,048) 4,237,952 Avenue 50 Bridge Spanning The Evacuation Channel 201902 16,349,000 (46,227) 16,302,773 Hwy 111 Corridor Area Plan Implementation 201905 12,284,000 (962,733) 11,321,267 Avenue 48 Art and Music Line Project 202008 2,400,000 (288,205) 2,111,795 Dune Palms Rd Pavement Rehab-Fred 202101 1,221,100 (39,438) 1,181,662 Fritz Burns Park Improvements 202102 11,350,000 (360,652) 10,989,348 City Hall Capacity Improvements 202202 800,000 (75) 799,925 Avenue 50 Widening Improvements 202205 1,118,509 (33,777) 1,084,732 Phase II Camera System 202212 1,651,756 (700) 1,651,056 Ave 58 Pavement Rehabilitation 202301 1,380,000 (630) 1,379,370 Washington Street Connector 202309 1,200,000 (350) 1,199,650 SilverRock Dust Control Improvements 202310 1,000,000 - 1,000,000 Citywide Dog Park Improvements 202407 1,500,000 - 1,500,000 Welcome Center Improvements 202409 750,000 - 750,000 62 139 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 17: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) Cash and Investments Cash and investments reported in the accompanying financial statements consisted of the following: See note 2 for required cash and investments disclosures. Due from other Governments La Quinta Library In April 2005, an advance of $2,490,273 was made from the former redevelopment agency to provide funding for the construction of the public library. The loan accrues interest at the earnings rate of the City’s investment pool fund. The remaining balance of this loan at June 30, 2024, is $1,118,627. Deferred Outflows of Resources As debt is refunded, the difference between the carrying value of the refunded debt and the reacquisition price is recorded as a deferred outflow of resources and amortized over the shorter of the new or refunded debt, whichever is shorter. Activity during the fiscal year is comprised of the following: Long-Term Debt A description of long-term debt outstanding of the Successor Agency as of June 30, 2024, follows: Cash and investments pooled with the City $ 15,672,078 Cash and investments with fiscal agent 1,670 $15,673,748 Balance at July 01, 2023 Additions Deductions Balance at June 30, 2024 Deferred charge on refunding 14,641,514$ -$ 1,124,996$ 13,516,518$ Balance at July 01, 2023 Additions Repayments Balance at June 30, 2024 Due within One year Tax allocation bonds 161,120,000$ -$ 13,255,000$ 147,865,000$ 13,355,000$ City Loans 24,500,993 340,804 3,437,076 21,404,721 3,505,817 Unamortized premiums/discounts (175,735) -(10,839) (164,896) - Total 185,445,258$ 340,804$ 16,681,237$ 169,104,825$ 16,860,817$ 63 140 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 17: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) 2016 Series A On December 22, 2016, the La Quinta Redevelopment Project Areas No. 1 and 2 Subordinate Tax Allocation Refunding Bonds 2016 Taxable Series A Bonds were issued for $35,055,000 by the Successor Agency to the La Quinta Redevelopment Agency (the “Agency”) to refinance on an advance basis the La Quinta Redevelopment Agency’s (the “Prior Agency”) previously issued $6,000,000 La Quinta Redevelopment Project Area No. 2, Subordinate Taxable Tax Allocation Bonds, Series 2011 (the “2011 Project Area No. 2 Taxable Bonds”) of which $5,810,000 was outstanding and the Prior Agency’s loan obligation under the Loan Agreement, dated February 3, 2004 as supplemented by the Second Supplemental Loan Agreement, dated as of March 1, 2011 (the “2011 Loan Obligation”) in connection with the La Quinta Financing Authority’s previously issued $28,850,000 Local Agency Subordinate Taxable Revenue Bonds, 2011 Series A (the “2011 Taxable Housing Bonds”) of which $20,280,000 was outstanding. The Bonds were issued on a subordinate basis to the $65,600,000 Successor Agency to the La Quinta Redevelopment Agency, La Quinta Redevelopment Project Areas No. 1 and 2, Tax Allocation Refunding Bonds, 2014 Series. The Bonds are payable from and secured by the Pledged Tax Revenues, as defined herein, to be derived from the La Quinta Redevelopment Project Area No. 1 and La Quinta Redevelopment Project Area No. 2. The principal of and interest on the Bonds are payable solely from the pledged tax revenues allocated to the Successor Agency from the project areas. The principal balance of outstanding bonds at June 30, 2024, is $25,090,00 with an unamortized discount of $164,896. The Bonds mature in 2040, but may be called before maturity and redeemed at the option of the Agency, in whole or in part, from the proceeds of refunding bonds or other available funds, on September 1, 2026 or on any date thereafter prior to maturity at a redemption price equal to the principal amount of Bonds to be redeemed, without premium, plus accrued interest to the redemption date. 2021 Series A On April 14, 2021, the Agency issued $156,915,000 in Series 2021 A Tax Allocation Refunding Bonds to refund the Series 2013 A and B and Series 2014 A Tax Allocation Bonds. The bonds are payable in annual installments ranging from $4,785,000 to $13,610,000 until maturity on September 1, 2034. Interest is payable semiannually on March 1 and September 1 of each year, at a rate of 2.774%. Bonds outstanding at June 30, 2024 were $122,775,000. The principal and interest on the bonds are payable solely from the pledged tax revenues allocated to the Successor Agency from the project areas. Year Ending June 30,Principal Interest Total 2025 1,510,000$ 988,315$ 2,500,479$ 2026 1,565,000 937,680 2,498,315 2027 1,620,000 882,845 2,502,680 2028 1,675,000 824,065 2,502,845 2029 1,730,000 761,188 2,499,065 2030-2034 9,755,000 2,680,838 12,447,634 2035-2039 7,175,000 545,550 9,552,966 2040 60,000 1,358 708,334 25,090,000$ 7,621,840$ 35,212,318$ 64 141 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 17: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) Future debt service requirements on these bonds are as follows: Loans from the City of La Quinta The City of La Quinta loaned money to the Former Agency to cover operating and capital shortfalls. In a letter dated November 6, 2013, the California Department of Finance approved the loans as enforceable obligations to be paid through Successor Agency property tax. This loan approved split between the City’s General and the Housing Authority Funds. As of June 30, 2024, principal and capitalized interest due to the City of La Quinta was $21,404,721 and is included as part of the due from other governments balance in the City’s General and the Housing Authority Funds. On November 22, 2017, the Department of Finance (DOF) approved the last and final Recognized Obligation Payment Schedules (ROPS). The ROPS is a comprehensive schedule which includes all bond debt service payments, City loan repayments, administration, and annual reporting requirements from fiscal years 2018-2019 to 2039-2040. Estimated future loan payment requirements on the City loan are as follows: Pledged Tax Revenues The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $169,629,534 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the Successor Agency for the payment of indebtedness incurred was $20,192,466 and the debt service obligation on the bonds was $16,696,117. Year Ending June 30,Principal Interest Total 2025 11,845,000$ 2,338,010$ 14,195,638$ 2026 11,920,000 2,227,651 14,183,010 2027 12,060,000 2,072,532 14,147,650 2028 12,240,000 1,881,273 14,132,532 2029 12,450,000 1,652,389 14,121,273 2030-2034 57,340,000 3,902,601 70,359,057 2035 4,920,000 68,240 9,974,175 122,775,000$ 14,142,696$ 151,113,335$ Year Ending June 30,Principal Interest Total 2025 3,505,817$ -$ 3,505,817$ 2026 3,575,934 - 3,575,934 2027 3,647,452 - 3,647,452 2028 3,720,401 - 3,720,401 2029 3,720,401 - 3,720,401 2030 3,234,716 - 3,234,716 21,404,721$ -$ 21,404,721$ 65 142 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2024 NOTE 17: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) Insurance The Successor Agency of the Former Agency is covered under the insurance policy of the City of La Quinta at June 30, 2024. NOTE 18: SUBSEQUENT EVENTS The City evaluated subsequent events for recognition and disclosure through May 15, 2025, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2024, that required recognition or disclosure in these financial statements. 66 143 Required Supplementary Information For the Year Ended June 30, 2024 City of La Quinta, California 67 144 THIS PAGE INTENTIONALLY LEFT BLANK 68 145 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes 71,630,000$ 72,646,000$ 76,894,958$ 4,248,958$ Licenses and Permits 2,521,300 2,701,300 2,820,613 119,313 Intergovernmental 178,000 178,000 523,573 345,573 Charges for services 963,200 1,153,200 1,494,422 341,222 Use of money and property 1,960,000 4,460,000 7,714,344 3,254,344 Fines and forfeitures 465,500 395,500 408,125 12,625 Miscellaneous 860,100 1,443,100 1,346,240 (96,860) Total revenues 78,578,100 82,977,100 91,202,275 8,225,175 EXPENDITURES Current: General government City council 317,900 322,900 318,008 4,892 City manager 1,588,360 1,588,360 1,118,331 470,029 City attorney 800,000 800,000 664,255 135,745 Human resources 651,800 701,300 498,620 202,680 City clerk 1,169,670 1,169,670 1,033,021 136,649 Finance 1,957,270 1,957,270 1,783,589 173,681 Central services 3,219,100 3,509,100 2,184,615 1,324,485 Public safety Police 18,583,800 18,618,300 16,251,849 2,366,451 Fire 9,889,120 10,247,120 9,021,869 1,225,251 Community services Community services administration 888,160 1,038,160 979,036 59,124 Wellness center operations 707,870 707,870 742,608 (34,738) Recreation program & special events 1,578,150 1,578,150 1,233,529 344,621 Parks and recreation 4,144,950 4,297,450 4,113,553 183,897 Marketing & community relations 1,814,660 1,864,660 1,850,681 13,979 Public buildings 1,715,750 1,795,750 1,670,208 125,542 Planning and development Design & development administration 811,600 811,600 709,446 102,154 Planning 707,400 717,400 560,046 157,354 Building 1,398,700 1,523,700 1,521,521 2,179 Code compliance/animal control 1,713,340 1,720,340 1,546,678 173,662 Public safety administration 322,300 331,800 123,967 207,833 The Hub 1,341,700 1,341,700 1,246,385 95,315 Public works Administration 821,900 821,900 686,076 135,824 Development services 532,900 532,900 429,434 103,466 Maintenance/operations - street 885,750 885,750 411,774 473,976 Engineering services 1,007,600 1,404,100 786,850 617,250 Capital Outlay 130,000 130,000 169,919 (39,919) Debt service: Principal - - 24,452 (24,452) Total expenditures 58,699,750 60,417,250 51,680,320 8,736,930 Excess (deficiency) of revenues over (under) expenditures 19,878,350 22,559,850 39,521,955 16,962,105 OTHER FINANCING SOURCES (USES) Transfers out (14,159,000) (41,489,381) (15,763,243) 25,726,138 Debt issuance proceeds - - 49,487 49,487 Total other financing sources (uses)(14,159,000) (41,489,381) (15,713,756) 25,775,625 Net change in fund balances 5,719,350$ (18,929,531)$ 23,808,199 42,737,730$ Fund balances (deficit)-beginning 185,977,508 Fund balances (deficit)-ending 209,785,707$ 69 146 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing Authority For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 1,366,500$ 1,486,500$ 2,295,077$ 808,577$ Miscellaneous 101,000 151,000 149,395 (1,605) Total revenues 1,467,500 1,637,500 2,444,472 806,972 EXPENDITURES Current: Community services 250,000 300,000 250,000 50,000 Planning and development 1,646,340 1,776,340 1,566,300 210,040 Capital outlay 200,000 4,174,192 3,625,185 549,007 Total expenditures 2,096,340 6,250,532 5,441,485 809,047 Excess (deficiency) of revenues over (under) expenditures (628,840) (4,613,032) (2,997,013) 1,616,019 OTHER FINANCING SOURCES (USES) Transfers in - 1,387,009 1,387,009 - Total other financing sources (uses)- 1,387,009 1,387,009 - Net change in fund balances (628,840)$ (3,226,023)$ (1,610,004) 1,616,019$ Fund balances (deficit)-beginning 26,365,834 Fund balances (deficit)-ending 24,755,830$ 70 147 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Disaster Recovery For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 15,000$ 15,000$ 491,528$ 476,528$ Total revenues 15,000 15,000 491,528 476,528 Net change in fund balances 15,000$ 15,000$ 491,528 476,528$ Fund balances (deficit)-beginning (50,178) Fund balances (deficit)-ending 441,350$ 71 148 CITY OF LA QUINTA, CALIFORNIA Schedule of Proportationate Share of Net Pension Liability - Miscellaneous Plan As of June 30, for the Last Ten Fiscal Years Proportionate Share Plan's Fiduciary Proportion of the Proportionate of the Net Pension Net Position as a Reporting Date 1 Net Pension Share of Net Liability as a % of % of the Total as of June 30, Liability Pension Liability Covered Payroll Covered Payroll Pension Liability 2024 0.0216%2,699,409$ 6,682,312$ 40.4%76.2% 2023 0.1173%13,550,553 6,223,072 217.7%76.7% 2022 0.1422%7,691,773 6,238,425 123.3%88.3% 2021 0.1333%14,502,311 7,066,830 205.2%75.1% 2020 0.1313%13,458,200 6,669,204 201.8%75.3% 2019 0.1287%12,403,691 6,064,875 204.5%75.3% 2018 0.1272%12,612,523 5,739,416 219.8%73.3% 2017 0.1257%10,874,098 5,569,002 195.3%74.1% 2016 0.1260%8,651,290 5,480,758 157.8%78.4% 2015 0.0976%6,433,391 5,421,945 118.7%79.8% Notes to Schedule of Proportionate Share of the Net Pension Liability: 1 The proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements. Benefit Changes : None Changes of Assumptions : None 72 149 CITY OF LA QUINTA, CALIFORNIA Schedules of Plan Contributions As of June 30, for the Last Ten Fiscal Years 1 Fiscal Year Actuarially Actual Contribution Contribution as a Ending Determined Employer Deficiency Covered % of Covered June 30, Contribution Contributions (Excess) Payroll Payroll 2024 1,570,587$ 1,683,062$ (112,475)$ 7,572,846$ 22.2% 2023 1,920,092 13,089,144 (11,169,052) 6,682,312 195.9% 2022 4,650,357 4,650,357 6,223,072 74.7% 2021 2,581,158 2,581,158 - 6,238,425 41.4% 2020 1,479,137 1,479,137 - 7,066,830 20.9% 2019 1,284,275 1,284,275 - 6,669,204 19.3% 2018 1,061,439 1,061,439 - 6,064,875 17.5% 2017 949,231 949,231 - 5,739,416 16.5% 2016 797,603 797,603 - 5,569,002 14.3% 2015 728,073 728,073 - 5,480,758 13.3% Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Actuarial cost Amortization m Asset valuatio Inflation Salary increas Payroll growth Investment ra Retirement ag Mortality 2024 60,219$ 56,838$ 3,381$ 7,777,068$ 0.7% 2023 78,734 58,070 20,664 6,682,312 0.9% 2022 101,376 91,530 9,846 6,223,072 1.5% 2021 86,939 89,947 (3,008) 6,238,425 1.4% 2020 90,229 98,490 (8,261) 7,066,830 1.4% 2019 88,280 98,584 (10,304) 6,669,204 1.5% 2018 201,513 1,609,970 (1,408,457) 6,064,875 26.5% Note to Schedule: Actuarial Cost Me Amortization Valu Asset Valuation MFair Value Inflation 2.30% Payroll Growth Investment Rate o5.50% per annum Healthcare cost-tr Retirement Age Mortality Single Employer OPEB Plan Miscellaneous Cost-Sharing, Multiple-Employer Pension Plan June 30, 2022 Entry age normal Level percentage of payroll, closed Fair Value 2.50% Varies by entry age and service 2.75% 6.9% net of pension investment and administrative expenses, including inflation. The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using the 90% scale MP 2016 published by the Society of Actuaries. Based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous and Police members. Entry Age Normal Level percent of 3.00% per annum, in aggregate Assumed to start at 6.5% and gradually decrease each year to an ultimate rate of 3.73% in 2075 Based on assumptions for Public Agency Miscellaneous and Police members published in the 2021 CalPERS Experience Study. 73 150 CITY OF LA QUINTA, CALIFORNIA Schedule of Changes in Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years 1 2024 2023 2022 Measurement Date 6/30/2023 6/30/2022 6/30/2021 TOTAL OPEB LIABILITY Service cost 85,632$ 85,049$ 87,732$ Interest on total pension liability 80,987 107,396 102,210 Changes of benefit terms - - - Changes of assumptions - 26,883 - Difference between expected and actual experience (1,901) (623,785) (1,617) Benefit payments, including refunds of employee contributions (58,070) (94,021) (89,947) Net change in total OPEB liability 106,648 (498,478) 98,378 Total OPEB liability-beginning 1,415,511 1,913,989 1,815,611 Total OPEB liability-ending (a)1,522,159 1,415,511 1,913,989 PLAN FIDUCIARY NET POSITION Contributions-employer 58,070 94,021 89,947 Contributions-employee - - - Net investment income 63,830 (257,883) 336,983 Benefit payments, including refunds of employee contributions (58,070) (94,021) (89,947) Net plan to plan resource movement - - - Administrative expense (514) (518) (624) Other miscellaneous income/(expense)- - - Net change in fiduciary net position 63,316 (258,401) 336,359 Plan fiduciary net position-beginning 1,792,999 2,051,400 1,715,041 Plan fiduciary net position-ending (b)1,856,315 1,792,999 2,051,400 Net OPEB liability/(asset) (a) - (b)(334,156)$ (377,488)$ (137,411)$ Plan fiduciary net position as a percentage of the total OPEB liability 122.0% 126.7% 107.2% Covered payroll 6,682,312$ 6,223,072$ 6,238,425$ Plan net OPEB liability/(asset) as a percentage of covered payroll -5.0%-6.1%-2.2% Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios: 1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only seven years are shown. Benefit Changes : None Changes of Assumptions : None 74 151 2021 2020 2019 2018 6/30/2020 6/30/2019 6/30/2018 6/30/2017 88,219$ 85,174$ 93,438$ 90,827$ 97,183 93,071 100,177 93,346 - - - - 44,464 (14,219) (44,229) - 103,495 - 71,533 - (98,490) (98,584) (86,570) (91,822) 234,871 65,442 134,349 92,351 1,580,740 1,515,298 1,380,949 1,288,598 1,815,611 1,580,740 1,515,298 1,380,949 98,490 98,584 1,609,970 - - - - - 88,052 106,805 (1,680) - (98,490) (98,584) (86,570) - - - - - (803) (327) (406) - - - - - 87,249 106,478 1,521,314 - 1,627,792 1,521,314 - - 1,715,041 1,627,792 1,521,314 - 100,570$ (47,052)$ (6,016)$ 1,380,949$ 94.5% 103.0% 100.4%0.0% 7,066,830$ 6,669,204$ 6,064,875$ 5,603,428$ 1.4%-0.7%-0.1%24.6% 75 152 CITY OF LA QUINTA, CALIFORNIA Notes to Required Supplementary Information For the Year Ended June 30, 2024 NOTE 1: BUDGET PROCEDURES General Budget Policies The City adopts an annual budget prepared on the modified accrual basis of accounting for its governmental funds and on the accrual basis of accounting for its proprietary funds. The City manager or his designee is authorized to transfer budgeted amounts between the accounts of any department or funds that are approved by City Council. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. The City did not adopt a budget for the Transportation Uniform Mitigation Fee Special Revenue Fund. Budget Basis of Accounting Budget for governmental funds is adopted on a basis consistent with generally accepted accounting principles (GAAP). Expenditures in Excess of Appropriations The following funds had expenditures in excess of appropriations for the year ended June 30, 2024: Budget Actual Variance General Fund Debt Service -$ 24,452$ (24,452)$ Wellness center operations 707,870 742,608 (34,738) AB 939 Planning and Development 150,000 270,646 (120,646) Measure A Public Works - 7,806 (7,806) Library Development Debt Service 15,000 32,495 (17,495) 76 153 Supplementary Information For the Year Ended June 30, 2024 City of La Quinta, California 77 154 City of La Quinta, California Other Governmental Funds For the Year Ended June 30, 2024 Special Revenue Funds Special revenue funds are used to account for specific revenues (other than expendable trusts and major capital projects) and the related expenditures that are legally required to be accounted for in a separate fund. The City of La Quinta has the following Special Revenue Funds: State Gas Tax Fund – To account for gasoline allocations made by the State of California. These revenues are restricted by the State to expenditures for street-related purposes only. Library and Museum Fund – To account for revenues from property tax increment dedicated library and museum services. Federal Assistance Fund – To account for revenues from the Community Development Block Grants received from the Federal Government and the expenditures of those resources. State Law Enforcement Services Account (SLESA) Fund – To account for state funded “Citizens for Public Safety” (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police services such as anti- gang community crime prevention. Lighting and Landscaping Fund – To account for special assessments levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance and improvements. Quimby Fund – To account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. La Quinta Public Safety Officer Fund – To account for contributions to be distributed to public safety officers disabled or killed in the line of duty. Art in Public Places – To account for development fees paid in lieu of acquisition and installation of approved artworks in a development with expenditures restricted to acquisition, installation, maintenance and repair of artworks at approved sites. South Coast Air Quality Fund – To account for contributions from the South Coast Air Quality Management District. Use is limited to reduction and control of airborne pollutants. AB 939 Fund – To account for the State mandated program to reduce waste sent to the landfills through recycling efforts. Housing Grant Fund – To account for housing related grants as required by outside agencies for reporting purposes. Law Enforcement Fund – To account for law enforcement grants and restricted revenue for public safety. 78 155 City of La Quinta, California Other Governmental Funds For the Year Ended June 30, 2024 Measure A Fund – In 1988, Riverside County voters approved a half cent sales tax, known as Measure A, to fund a variety of highway improvements, local street and road maintenance, commuter assistance and specialized highway transit projects. This fund is used to collect this tax and pursuant to the provision of Measure A, it is restricted for local street and road expenditures. Economic Development Fund – To account for the revenues and expenditures related to proceeds from sale of City owned land and future economic development. AB 1379 Fund – To account for the revenues and expenditures related to the annual business license accessibility fee to be used for expenses enhancing accessibility requirements. Transportation Uniform Mitigation Fee Fund – To account for the revenues and expenditures related to Transportation Uniform Mitigation Fee monies. Capital Project Funds Capital projects funds account for the financial resources to be used for the acquisition, construction or improvements of major capital facilities and infrastructure. Infrastructure Fund – To account for the accumulation of resources provided through developer fees for the acquisition, construction or improvement of the City’s infrastructure, prior to adoption of the new Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources received prior to this date, and is budgeted by the Council through adoption of the annual capital improvement program budget. Civic Center Fund – This fund accounts for the accumulation of resources provided through developer fees for the acquisition, construction, or improvement of the Civic Center. Maintenance Facilities DIF, Transportation Fund, Parks and Recreations Fund, Library Development Fund, Community Center Fund, Street Facility Fund, Park Facility Fund, Fire Facility Fund – To account for the accumulation of resources provided through developer fees for the acquisition, construction, or improvement of the City’s infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Eight funds have been established to account for the specific impact areas of these fees, and are budgeted by the Council through adoption of the annual Capital Improvement Program budget. Debt Service Funds Debt Service Funds are used to account for the accumulation of resources for, and the payment of, governmental long-term debt principal and interest. La Quinta Financing Authority Fund – This fund is used to account for the debt service that will be used for the principal and interest payments of the Financing Authority’s outstanding debt and any related reporting requirements. 79 156 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments 3,254,798$ 12,310,074$ 2,259$ 619,464$ Receivables: Accounts - - - - Taxes 260,922 - - - Accrued interest 3,859 14,679 3 739 Due from other governments - 1,528,165 - - Prepaid costs - 500 - - Total assets 3,519,579$ 13,853,418$ 2,262$ 620,203$ LIABILITIES Accounts payable 357,883 189,668 - 14,615 Accrued liabilities 19,913 3,766 - - Due to other governments - - - - Due to other funds - - - - Total liabilities 377,796 193,434 - 14,615 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - Total deferred inflows of resources - - - - FUND BALANCES (DEFICITS) Nonspendable - 500 - - Restricted 3,141,783 13,659,484 2,262 605,588 Unassigned - - - - Total fund balances (deficits)3,141,783 13,659,984 2,262 605,588 Total liabilities, deferred inflows of resources, and fund balances (deficits)3,519,579$ 13,853,418$ 2,262$ 620,203$ Special Revenue Funds State Gas Tax Library and Museum Federal Assistance SLESA 80 157 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Receivables: Accounts Taxes Accrued interest Due from other governments Prepaid costs Total assets LIABILITIES Accounts payable Accrued liabilities Due to other governments Due to other funds Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues Total deferred inflows of resources FUND BALANCES (DEFICITS) Nonspendable Restricted Unassigned Total fund balances (deficits) Total liabilities, deferred inflows of resources, and fund balances (deficits) 987,565$ -$ 57,731$ 974,926$ - - - - 19,993 - - - 1,159 - 69 1,162 - - - - - - - - 1,008,717$ -$ 57,800$ 976,088$ 97,847 - - 1,250 15,712 - - - - - - - - 735,460 - - 113,559 735,460 - 1,250 - - - - - - - - - - - - 895,158 - 57,800 974,838 - (735,460) - - 895,158 (735,460) 57,800 974,838 1,008,717$ -$ 57,800$ 976,088$ Special Revenue Funds Art in Public Places Lighting and Landscaping Quimby La Quinta Public Safety Officer 81 158 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Receivables: Accounts Taxes Accrued interest Due from other governments Prepaid costs Total assets LIABILITIES Accounts payable Accrued liabilities Due to other governments Due to other funds Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues Total deferred inflows of resources FUND BALANCES (DEFICITS) Nonspendable Restricted Unassigned Total fund balances (deficits) Total liabilities, deferred inflows of resources, and fund balances (deficits) 135,737$ 681,703$ -$ 190,785$ - - - - - - - - 162 813 - 228 12,778 3,466 - 11,875 - - - - 148,677$ 685,982$ -$ 202,888$ 22,489 3,032 - 3,936 - - - - - - - - - - 60,267 16,482 22,489 3,032 60,267 20,418 - - - - - - - - - - - - 126,188 682,950 - 182,470 - - (60,267) - 126,188 682,950 (60,267) 182,470 148,677$ 685,982$ -$ 202,888$ Special Revenue Funds South Coast Air Quality AB939 Housing Grant Law Enforcement 82 159 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Receivables: Accounts Taxes Accrued interest Due from other governments Prepaid costs Total assets LIABILITIES Accounts payable Accrued liabilities Due to other governments Due to other funds Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues Total deferred inflows of resources FUND BALANCES (DEFICITS) Nonspendable Restricted Unassigned Total fund balances (deficits) Total liabilities, deferred inflows of resources, and fund balances (deficits) 3,111,649$ 3,489,330$ 104,609$ 50,248$ - 108,563 - 190 351,688 - - - 3,712 4,161 125 - - - - - - - - - 3,467,049$ 3,602,054$ 104,734$ 50,438$ - 7,561 1,574 43,841 - - - - - - - - - - - - - 7,561 1,574 43,841 - 108,563 - - - 108,563 - - - - - - 3,467,049 3,485,930 103,160 6,597 - - - - 3,467,049 3,485,930 103,160 6,597 3,467,049$ 3,602,054$ 104,734$ 50,438$ Special Revenue Funds AB 1379 Transportation Uniform Mitigation Fee Measure A Economic Development 83 160 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Receivables: Accounts Taxes Accrued interest Due from other governments Prepaid costs Total assets LIABILITIES Accounts payable Accrued liabilities Due to other governments Due to other funds Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues Total deferred inflows of resources FUND BALANCES (DEFICITS) Nonspendable Restricted Unassigned Total fund balances (deficits) Total liabilities, deferred inflows of resources, and fund balances (deficits) 362,094$ 20,170$ 1,863,388$ 5,861,017$ - - - - - - - - 433 24 2,222 6,991 - - - - - - - - 362,527$ 20,194$ 1,865,610$ 5,868,008$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 362,527 20,194 1,865,610 5,868,008 - - - - 362,527 20,194 1,865,610 5,868,008 362,527$ 20,194$ 1,865,610$ 5,868,008$ Capital Projects Funds Maintenance Facilities DIF Infrastructure Civic Center Transportation 84 161 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Receivables: Accounts Taxes Accrued interest Due from other governments Prepaid costs Total assets LIABILITIES Accounts payable Accrued liabilities Due to other governments Due to other funds Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues Total deferred inflows of resources FUND BALANCES (DEFICITS) Nonspendable Restricted Unassigned Total fund balances (deficits) Total liabilities, deferred inflows of resources, and fund balances (deficits) 1,668,706$ -$ 1,106,241$ 84,131$ - - - - - - - - 1,991 - 1,320 100 - - - - - - - - 1,670,697$ -$ 1,107,561$ 84,231$ - - - - - - - - - 1,118,627 - - - - - - - 1,118,627 - - - - - - - - - - - - - - 1,670,697 - 1,107,561 84,231 - (1,118,627) - - 1,670,697 (1,118,627) 1,107,561 84,231 1,670,697$ -$ 1,107,561$ 84,231$ Capital Projects Funds Library Development Community Center Street Facility Parks and Recreation 85 162 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Receivables: Accounts Taxes Accrued interest Due from other governments Prepaid costs Total assets LIABILITIES Accounts payable Accrued liabilities Due to other governments Due to other funds Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues Total deferred inflows of resources FUND BALANCES (DEFICITS) Nonspendable Restricted Unassigned Total fund balances (deficits) Total liabilities, deferred inflows of resources, and fund balances (deficits) Total Nonmajor Funds 7,923$ 638,527$ 907$ 37,583,982$ - - - 108,753 - - - 632,603 11 762 - 44,725 - - - 1,556,284 - - - 500 7,934$ 639,289$ 907$ 39,926,847$ - - 907 744,603 - - - 39,391 - - - 1,118,627 - - - 812,209 - - 907 2,714,830 - - - 108,563 - - - 108,563 - - - 500 7,934 639,289 - 39,017,308 - - - (1,914,354) 7,934 639,289 - 37,103,454 7,934$ 639,289$ 907$ 39,926,847$ Debt Service Funds Financing Authority Park Facility Fire Facility Capital Projects Funds 86 163 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES Taxes -$ -$ -$ -$ Assessments - - - - Intergovernmental 2,024,451 3,835,414 371,978 186,159 Use of money and property 137,834 529,486 108 24,594 Developer fees - - - - Miscellaneous - 3,634 - - Total revenues 2,162,285 4,368,534 372,086 210,753 EXPENDITURES Current: General government - - - - Public safety - - - 86,931 Community services - 1,866,679 - - Planning and development - - - - Public works 2,088,178 - 16,419 - Capital Outlay - - - - Debt service: Principal - - - - Interest and fiscal charges - - - - Total expenditures 2,088,178 1,866,679 16,419 86,931 Excess (deficiency) of revenues over (under) expenditures 74,107 2,501,855 355,667 123,822 OTHER FINANCING SOURCES (USES) Transfers In 1,250,000 - - - Transfers Out (969,409) (389,578) (355,559) - Total other financing sources (uses)280,591 (389,578) (355,559) - Net change in fund balances 354,698 2,112,277 108 123,822 Fund balances (deficit)-beginning 2,787,085 11,547,707 2,154 481,766 Fund balances (deficit)-ending 3,141,783$ 13,659,984$ 2,262$ 605,588$ Special Revenue Funds State Gas Tax Library and Museum Federal Assistance SLESA 87 164 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES Taxes Assessments Intergovernmental Use of money and property Developer fees Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Community services Planning and development Public works Capital Outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total other financing sources (uses) Net change in fund balances Fund balances (deficit)-beginning Fund balances (deficit)-ending -$ -$ -$ -$ 988,238 - - - - - - - 44,125 - 2,660 43,373 - - - 131,312 - - - - 1,032,363 - 2,660 174,685 - - - - - - - - - - - 62,745 - - - - 2,691,283 - - - - - - 57,549 - - - - - - - - 2,691,283 - - 120,294 (1,658,920) - 2,660 54,391 2,000,000 - 2,000 50,000 - - - (913) 2,000,000 - 2,000 49,087 341,080 - 4,660 103,478 554,078 (735,460) 53,140 871,360 895,158$ (735,460)$ 57,800$ 974,838$ Special Revenue Funds Lighting and Landscaping Quimby La Quinta Public Safety Officer Art in Public Places 88 165 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES Taxes Assessments Intergovernmental Use of money and property Developer fees Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Community services Planning and development Public works Capital Outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total other financing sources (uses) Net change in fund balances Fund balances (deficit)-beginning Fund balances (deficit)-ending -$ 71,595$ -$ -$ - - - - 51,086 116,290 - 40,737 4,148 34,711 - 9,838 - - - - - - - - 55,234 222,596 - 50,575 - - - - - - - 13,886 - - - - 38,315 270,646 - - - - - - - - - - - - - - - - - - 38,315 270,646 - 13,886 16,919 (48,050) - 36,689 23,049 - - - - - - (21,312) 23,049 - - (21,312) 39,968 (48,050) - 15,377 86,220 731,000 (60,267) 167,093 126,188$ 682,950$ (60,267)$ 182,470$ Special Revenue Funds South Coast Air Quality AB939 Housing Grant Law Enforcement 89 166 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES Taxes Assessments Intergovernmental Use of money and property Developer fees Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Community services Planning and development Public works Capital Outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total other financing sources (uses) Net change in fund balances Fund balances (deficit)-beginning Fund balances (deficit)-ending 1,959,770$ -$ -$ -$ - - - - - - 15,732 - 155,513 224,799 4,423 - - - - - - - - - 2,115,283 224,799 20,155 - - - - - - - - - - 16,632 - - - 5,711 1,574 - 7,806 - - - - - - - - - - - - - - - 7,806 22,343 1,574 - 2,107,477 202,456 18,581 - - - - - (2,754,523) - - - (2,754,523) - - - (647,046) 202,456 18,581 - 4,114,095 3,283,474 84,579 6,597 3,467,049$ 3,485,930$ 103,160$ 6,597$ Special Revenue Funds Measure A Economic Development AB 1379 Transportation Uniform Mitigation Fee 90 167 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES Taxes Assessments Intergovernmental Use of money and property Developer fees Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Community services Planning and development Public works Capital Outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total other financing sources (uses) Net change in fund balances Fund balances (deficit)-beginning Fund balances (deficit)-ending -$ -$ -$ -$ - - - - - - - - 15,620 952 83,216 266,581 35,224 - 114,700 95,552 - - - - 50,844 952 197,916 362,133 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 50,844 952 197,916 362,133 - - - - - - - (12,267) - - - (12,267) 50,844 952 197,916 349,866 311,683 19,242 1,667,694 5,518,142 362,527$ 20,194$ 1,865,610$ 5,868,008$ Capital Projects Funds Maintenance Facilities DIF Infrastructure Civic Center Transportation 91 168 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES Taxes Assessments Intergovernmental Use of money and property Developer fees Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Community services Planning and development Public works Capital Outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total other financing sources (uses) Net change in fund balances Fund balances (deficit)-beginning Fund balances (deficit)-ending -$ -$ -$ -$ - - - - - - - - 81,561 - 48,991 3,970 257,597 32,495 78,250 - - - - - 339,158 32,495 127,241 3,970 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 32,495 - - - 32,495 - - 339,158 - 127,241 3,970 - - - - (277,670) - - - (277,670) - - - 61,488 - 127,241 3,970 1,609,209 (1,118,627) 980,320 80,261 1,670,697$ (1,118,627)$ 1,107,561$ 84,231$ Capital Projects Funds Parks and Recreation Library Development Community Center Street Facility 92 169 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES Taxes Assessments Intergovernmental Use of money and property Developer fees Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Community services Planning and development Public works Capital Outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total other financing sources (uses) Net change in fund balances Fund balances (deficit)-beginning Fund balances (deficit)-ending Total Nonmajor Funds -$ -$ -$ 2,031,365$ - - - 988,238 - - - 6,641,847 375 28,724 907 1,746,509 - 34,257 - 779,387 - - - 3,634 375 62,981 907 12,190,980 - - 907 907 - - - 100,817 - - - 1,946,056 - - - 316,246 - - - 4,803,686 - - - 57,549 - - - - - - - 32,495 - - 907 7,257,756 375 62,981 - 4,933,224 - - - 3,325,049 - - - (4,781,231) - - - (1,456,182) 375 62,981 - 3,477,042 7,559 576,308 - 33,626,412 7,934$ 639,289$ -$ 37,103,454$ Capital Projects Funds Debt Service Funds Park Facility Fire Facility Financing Authority 93 170 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual State Gas Tax For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental 1,948,600$ 1,987,900$ 2,024,451$ 36,551$ Use of money and property 10,000 10,000 137,834 127,834 Total revenues 1,958,600 1,997,900 2,162,285 164,385 EXPENDITURES Current: Public works 1,885,000 2,935,000 2,088,178 846,822 Total expenditures 1,885,000 2,935,000 2,088,178 846,822 Excess (deficiency) of revenues over (under) expenditures 73,600 (937,100) 74,107 1,011,207 OTHER FINANCING SOURCES (USES) Transfers in 500,000 1,250,000 1,250,000 - Transfers out (917,400) (2,626,461) (969,409) 1,657,052 Total other financing sources (uses)(417,400) (1,376,461) 280,591 1,657,052 Net change in fund balances (343,800)$ (2,313,561)$ 354,698 2,668,259$ Fund balances (deficit)-beginning 2,787,085 Fund balances (deficit)-ending 3,141,783$ 94 171 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Library and Museum For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental 2,850,000$ 2,850,000$ 3,835,414$ 985,414$ Use of money and property 70,000 70,000 529,486 459,486 Miscellaneous 2,000 2,000 3,634 1,634 Total revenues 2,922,000 2,922,000 4,368,534 1,446,534 EXPENDITURES Current: Community services 2,240,160 2,240,160 1,866,679 373,481 Total expenditures 2,240,160 2,240,160 1,866,679 373,481 Excess (deficiency) of revenues over (under) expenditures 681,840 681,840 2,501,855 1,820,015 OTHER FINANCING SOURCES (USES) Transfers out - (2,694,323) (389,578) 2,304,745 Total other financing sources (uses)- (2,694,323) (389,578) 2,304,745 Net change in fund balances 681,840$ (2,012,483)$ 2,112,277 4,124,760$ Fund balances (deficit)-beginning 11,547,707 Fund balances (deficit)-ending 13,659,984$ 95 172 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Federal Assistance For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental 156,000$ 375,259$ 371,978$ (3,281)$ Use of money and property - - 108 108 Total revenues 156,000 375,259 372,086 (3,173) EXPENDITURES Current: Public works 20,000 20,000 16,419 3,581 Total expenditures 20,000 20,000 16,419 3,581 Excess (deficiency) of revenues over (under) expenditures 136,000 355,259 355,667 408 OTHER FINANCING SOURCES (USES) Transfers out (136,300) (355,559) (355,559) - Total other financing sources (uses)(136,300) (355,559) (355,559) - Net change in fund balances (300)$ (300)$ 108 408$ Fund balances (deficit)-beginning 2,154 Fund balances (deficit)-ending 2,262$ 96 173 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual State Law Enforcement Services For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental 100,000$ 160,000$ 186,159$ 26,159$ Use of money and property 1,500 1,500 24,594 23,094 Total revenues 101,500 161,500 210,753 49,253 EXPENDITURES Current: Public safety 100,000 100,000 86,931 13,069 Total expenditures 100,000 100,000 86,931 13,069 Net change in fund balances 1,500$ 61,500$ 123,822 62,322$ Fund balances (deficit)-beginning 481,766 Fund balances (deficit)-ending 605,588$ 97 174 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Lighting and Landscaping For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Assessments 989,000$ 989,000$ 988,238$ (762)$ Use of money and property 3,000 3,000 44,125 41,125 Total revenues 992,000 992,000 1,032,363 40,363 EXPENDITURES Current: Public works 3,186,915 3,353,915 2,691,283 662,632 Total expenditures 3,186,915 3,353,915 2,691,283 662,632 Excess (deficiency) of revenues over (under) expenditures (2,194,915) (2,361,915) (1,658,920) 702,995 OTHER FINANCING SOURCES (USES) Transfers in 2,000,000 2,000,000 2,000,000 - Total other financing sources (uses)2,000,000 2,000,000 2,000,000 - Net change in fund balances (194,915)$ (361,915)$ 341,080 702,995$ Fund balances (deficit)-beginning 554,078 Fund balances (deficit)-ending 895,158$ 98 175 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Quimby For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) OTHER FINANCING SOURCES (USES) Transfers out -$ (445,176)$ -$ 445,176$ Total other financing sources (uses)- (445,176) - 445,176 Net change in fund balances -$ (445,176)$ - 445,176$ Fund balances (deficit)-beginning (735,460) Fund balances (deficit)-ending (735,460)$ 99 176 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual La Quinta Public Safety Officer For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 500$ 500$ 2,660$ 2,160$ Total revenues 500 500 2,660 2,160 OTHER FINANCING SOURCES (USES) Transfers in 2,000 2,000 2,000 - Total other financing sources (uses)2,000 2,000 2,000 - Net change in fund balances 2,500$ 2,500$ 4,660 2,160$ Fund balances (deficit)-beginning 53,140 Fund balances (deficit)-ending 57,800$ 100 177 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Art in Public Places For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 4,000$ 4,000$ 43,373$ 39,373$ Developer fees 100,000 100,000 131,312 31,312 Total revenues 104,000 104,000 174,685 70,685 EXPENDITURES Current: Community services 83,000 83,000 62,745 20,255 Capital outlay 150,000 150,000 57,549 92,451 Total expenditures 233,000 233,000 120,294 112,706 Excess (deficiency) of revenues over (under) expenditures (129,000) (129,000) 54,391 183,391 OTHER FINANCING SOURCES (USES) Transfers in 50,000 50,000 50,000 - Transfers out - (509,711) (913) 508,798 Total other financing sources (uses)50,000 (459,711) 49,087 508,798 Net change in fund balances (79,000)$ (588,711)$ 103,478 692,189$ Fund balances (deficit)-beginning 871,360 Fund balances (deficit)-ending 974,838$ 101 178 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual South Coast Air Quality For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental 54,000$ 54,000$ 51,086$ (2,914)$ Use of money and property 1,000 1,000 4,148 3,148 Total revenues 55,000 55,000 55,234 234 EXPENDITURES Current: Planning and development 54,000 39,000 38,315 685 Total expenditures 54,000 39,000 38,315 685 Excess (deficiency) of revenues over (under) expenditures 1,000 16,000 16,919 919 OTHER FINANCING SOURCES (USES) Transfers in - 25,000 23,049 (1,951) Total other financing sources (uses)- 25,000 23,049 (1,951) Net change in fund balances 1,000$ 41,000$ 39,968 (1,032)$ Fund balances (deficit)-beginning 86,220 Fund balances (deficit)-ending 126,188$ 102 179 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual AB 939 For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes 65,000$ 65,000$ 71,595$ 6,595$ Intergovernmental - - 116,290 116,290 Use of money and property 5,000 5,000 34,711 29,711 Total revenues 70,000 70,000 222,596 152,596 EXPENDITURES Current: Planning and development 150,000 150,000 270,646 (120,646) Total expenditures 150,000 150,000 270,646 (120,646) Net change in fund balances (80,000)$ (80,000)$ (48,050) 31,950$ Fund balances (deficit)-beginning 731,000 Fund balances (deficit)-ending 682,950$ 103 180 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Law Enforcement For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental 17,000$ 17,000$ 40,737$ 23,737$ Use of money and property 3,000 3,000 9,838 6,838 Total revenues 20,000 20,000 50,575 30,575 EXPENDITURES Current: Public safety 17,000 17,000 13,886 3,114 Total expenditures 17,000 17,000 13,886 3,114 Excess (deficiency) of revenues over (under) expenditures 3,000 3,000 36,689 33,689 OTHER FINANCING SOURCES (USES) Transfers out - (41,687) (21,312) 20,375 Total other financing sources (uses)- (41,687) (21,312) 20,375 Net change in fund balances 3,000$ (38,687)$ 15,377 54,064$ Fund balances (deficit)-beginning 167,093 Fund balances (deficit)-ending 182,470$ 104 181 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure A For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes 2,013,000$ 2,013,000$ 1,959,770$ (53,230)$ Use of money and property 15,000 15,000 155,513 140,513 Total revenues 2,028,000 2,028,000 2,115,283 87,283 EXPENDITURES Current: Public works - - 7,806 (7,806) Total expenditures - - 7,806 (7,806) Excess (deficiency) of revenues over (under) expenditures 2,028,000 2,028,000 2,107,477 79,477 OTHER FINANCING SOURCES (USES) Transfers out (1,865,000) (4,810,319) (2,754,523) 2,055,796 Total other financing sources (uses)(1,865,000) (4,810,319) (2,754,523) 2,055,796 Net change in fund balances 163,000$ (2,782,319)$ (647,046) 2,135,273$ Fund balances (deficit)-beginning 4,114,095 Fund balances (deficit)-ending 3,467,049$ 105 182 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Economic Development For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 20,000$ 20,000$ 224,799$ 204,799$ Total revenues 20,000 20,000 224,799 204,799 EXPENDITURES Current: Community services 20,000 20,000 16,632 3,368 Planning and development 11,500 11,500 5,711 5,789 Total expenditures 31,500 31,500 22,343 9,157 Net change in fund balances (11,500)$ (11,500)$ 202,456 213,956$ Fund balances (deficit)-beginning 3,283,474 Fund balances (deficit)-ending 3,485,930$ 106 183 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual AB 1379 For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental 20,000$ 20,000$ 15,732$ (4,268)$ Use of money and property 500 500 4,423 3,923 Total revenues 20,500 20,500 20,155 (345) EXPENDITURES Current: Planning and development 5,500 5,500 1,574 3,926 Total expenditures 5,500 5,500 1,574 3,926 Net change in fund balances 15,000$ 15,000$ 18,581 3,581$ Fund balances (deficit)-beginning 84,579 Fund balances (deficit)-ending 103,160$ 107 184 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Capital Improvements For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental 3,000,000$ 40,608,349$ 14,078,555$ (26,529,794)$ Developer fees - 114,766 100,044 (14,722) Total revenues 3,000,000 40,723,115 14,178,599 (26,544,516) EXPENDITURES Current: Public safety - 2,557,678 - 2,557,678 Capital outlay 17,950,700 83,309,195 24,630,204 58,678,991 Total expenditures 17,950,700 85,866,873 24,630,204 61,236,669 Excess (deficiency) of revenues over (under) expenditures (14,950,700) (45,143,758) (10,451,605) 34,692,153 OTHER FINANCING SOURCES (USES) Transfers in 14,950,700 49,965,557 14,366,766 (35,598,791) Total other financing sources (uses) 14,950,700 49,965,557 14,366,766 (35,598,791) Net change in fund balances -$ 4,821,799$ 3,915,161 (906,638)$ Fund balances (deficit)-beginning (6,099,608) Fund balances (deficit)-ending (2,184,447)$ 108 185 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Maintenance Facilities DIF For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 1,000$ 1,000$ 15,620$ 14,620$ Developer fees 100,000 45,000 35,224 (9,776) Total revenues 101,000 46,000 50,844 4,844 OTHER FINANCING SOURCES (USES) Transfers out (180,000) (180,000) - 180,000 Total other financing sources (uses)(180,000) (180,000) - 180,000 Net change in fund balances (79,000)$ (134,000)$ 50,844 184,844$ Fund balances (deficit)-beginning 311,683 Fund balances (deficit)-ending 362,527$ 109 186 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Infrastructure For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 500$ 500$ 952$ 452$ Total revenues 500 500 952 452 Net change in fund balances 500$ 500$ 952 452$ Fund balances (deficit)-beginning 19,242 Fund balances (deficit)-ending 20,194$ 110 187 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Civic Center For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 1,500$ 1,500$ 83,216$ 81,716$ Developer fees 500,000 140,000 114,700 (25,300) Total revenues 501,500 141,500 197,916 56,416 OTHER FINANCING SOURCES (USES) Transfers out - (249,925) - 249,925 Total other financing sources (uses)- (249,925) - 249,925 Net change in fund balances 501,500$ (108,425)$ 197,916 306,341$ Fund balances (deficit)-beginning 1,667,694 Fund balances (deficit)-ending 1,865,610$ 111 188 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Transportation For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 20,000$ 20,000$ 266,581$ 246,581$ Developer fees 1,100,000 200,000 95,552 (104,448) Total revenues 1,120,000 220,000 362,133 142,133 OTHER FINANCING SOURCES (USES) Transfers out (150,000) (1,269,775) (12,267) 1,257,508 Total other financing sources (uses)(150,000) (1,269,775) (12,267) 1,257,508 Net change in fund balances 970,000$ (1,049,775)$ 349,866 1,399,641$ Fund balances (deficit)-beginning 5,518,142 Fund balances (deficit)-ending 5,868,008$ 112 189 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Parks and Recreation For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 1,500$ 1,500$ 81,561$ 80,061$ Developer fees 750,000 300,000 257,597 (42,403) Total revenues 751,500 301,500 339,158 37,658 OTHER FINANCING SOURCES (USES) Transfers out (650,000) (1,121,285) (277,670) 843,615 Total other financing sources (uses)(650,000) (1,121,285) (277,670) 843,615 Net change in fund balances 101,500$ (819,785)$ 61,488 881,273$ Fund balances (deficit)-beginning 1,609,209 Fund balances (deficit)-ending 1,670,697$ 113 190 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Library Development For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Developer fees 100,000$ 40,000$ 32,495$ (7,505)$ Total revenues 100,000 40,000 32,495 (7,505) EXPENDITURES Debt service: Principal - - - - Interest and fiscal charges 15,000 15,000 32,495 (17,495) Total expenditures 15,000 15,000 32,495 (17,495) Net change in fund balances 85,000$ 25,000$ - (25,000)$ Fund balances (deficit)-beginning (1,118,627) Fund balances (deficit)-ending (1,118,627)$ 114 191 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Community Center For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 2,500$ 2,500$ 48,991$ 46,491$ Developer fees 250,000 100,000 78,250 (21,750) Total revenues 252,500 102,500 127,241 24,741 OTHER FINANCING SOURCES (USES) Transfers out - (125,000) - 125,000 Total other financing sources (uses)- (125,000) - 125,000 Net change in fund balances 252,500$ (22,500)$ 127,241 149,741$ Fund balances (deficit)-beginning 980,320 Fund balances (deficit)-ending 1,107,561$ 115 192 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Street Facility For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 1,000$ 1,000$ 3,970$ 2,970$ Total revenues 1,000 1,000 3,970 2,970 Net change in fund balances 1,000$ 1,000$ 3,970 2,970$ Fund balances (deficit)-beginning 80,261 Fund balances (deficit)-ending 84,231$ 116 193 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Park Facility For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 100$ 100$ 375$ 275$ Total revenues 100 100 375 275 Net change in fund balances 100$ 100$ 375 275$ Fund balances (deficit)-beginning 7,559 Fund balances (deficit)-ending 7,934$ 117 194 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Fire Facility For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 1,500$ 1,500$ 28,724$ 27,224$ Developer fees 150,000 40,000 34,257 (5,743) Total revenues 151,500 41,500 62,981 21,481 Net change in fund balances 151,500$ 41,500$ 62,981 21,481$ Fund balances (deficit)-beginning 576,308 Fund balances (deficit)-ending 639,289$ 118 195 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Financing Authority For the Year Ended June 30, 2024 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property 1,100$ 1,100$ 907$ (193)$ Total revenues 1,100 1,100 907 (193) EXPENDITURES Current: General government 1,100 1,100 907 193 Total expenditures 1,100 1,100 907 193 Net change in fund balances -$ -$ - -$ Fund balances (deficit)-beginning - Fund balances (deficit)-ending -$ 119 196 THIS PAGE INTENTIONALLY LEFT BLANK 120 197 City of La Quinta, California Internal Service Funds For the Year Ended June 30, 2024 Internal service funds are used to account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such goods are delivered or services rendered. The City of La Quinta has the following Internal Service Funds: Equipment Replacement Fund – To account for the operational maintenance and ultimate replacement of City owned and operated vehicles and equipment. Information Technology Fund – To account for the purchase and replacement of information systems. Park Equipment and Facilities Fund – To account for the purchase and replacement of City owned and operated park equipment and facilities. Insurance Fund – To account for the City’s insurance coverage.                                    121 198 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Net Position Internal Service Funds June 30, 2024 Total Internal Service Funds ASSETS Current assets: Cash and investments 5,350,294$ 3,955,581$ 3,844,536$ 886,531$ 14,036,942$ Receivables: Accrued interest 6,381 4,715 4,585 1,058 16,739 Prepaid costs - 120,799 - - 120,799 Total current assets 5,356,675 4,081,095 3,849,121 887,589 14,174,480 Noncurrent: Capital assets, net 1,659,179 688,261 12,096,830 - 14,444,270 Total noncurrent assets 1,659,179 688,261 12,096,830 - 14,444,270 Total assets 7,015,854 4,769,356 15,945,951 887,589 28,618,750 LIABILITIES Current liabilities: Accounts payable 29,942 189,554 1,071,053 - 1,290,549 Accrued liabilities - 2,057 - - 2,057 Accrued interest 142 7,018 - - 7,160 Leases 38,288 - - - 38,288 Subscriptions - 194,001 - - 194,001 Total current liabilities 68,372 392,630 1,071,053 - 1,532,055 Noncurrent liabilities: Leases 11,272 - - - 11,272 Subscriptions - 88,308 - - 88,308 Total noncurrent liabilities 11,272 88,308 - - 99,580 Total liabilities 79,644 480,938 1,071,053 - 1,631,635 NET POSITION Net Investment in Capital Assets 1,609,619 405,952 12,096,830 - 14,112,401 Net Position, Unrestricted 5,326,591 3,882,466 2,778,068 887,589 12,874,714 Total net position 6,936,210$ 4,288,418$ 14,874,898$ 887,589$ 26,987,115$ Equipment Replacement Information Technology Park Equipment and Facilities Insurance 122 199 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds For the Year Ended June 30, 2024 Total Internal Service Funds OPERATING REVENUES Sales and service charges 1,560,485$ 3,086,333$ 1,000,000$ 1,361,230$ 7,008,048$ Total operating revenues 1,560,485 3,086,333 1,000,000 1,361,230 7,008,048 OPERATING EXPENSES Administration and general 35,089 46,896 - 280,712 362,697 Contract services - 746,292 417,199 827,828 1,991,319 Software and supplies - 947,382 - - 947,382 Fuel and oil 119,877 - - - 119,877 Maintenance and parts 243,679 - - - 243,679 Depreciation and amortization 522,457 477,564 605,913 - 1,605,934 Total operating expenses 921,102 2,218,134 1,023,112 1,108,540 5,270,888 Operating income (loss)639,383 868,199 (23,112) 252,690 1,737,160 NONOPERATING REVENUES (EXPENSES) Interest Revenue 220,550 158,676 177,615 22,308 579,149 Interest Expense (1,586) (14,123) - - (15,709) Other Income 4,272 - - - 4,272 Gain (loss) on disposal of capital assets (16,504) - - - (16,504) Total nonoperating revenues (expenses) 206,732 144,553 177,615 22,308 551,208 Income (loss) before transfers 846,115 1,012,752 154,503 274,998 2,288,368 Transfers out (350) - - - (350) Change in net position 845,765 1,012,752 154,503 274,998 2,288,018 Net position-beginning 6,090,445 3,275,666 14,720,395 612,591 24,699,097 Net position-ending 6,936,210$ 4,288,418$ 14,874,898$ 887,589$ 26,987,115$ Equipment Replacement Information Technology Park Equipment and Facilities Insurance 123 200 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2024 Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund charges 1,560,485$ 3,086,333$ 1,000,000$ 1,361,230$ 7,008,048$ Payments to suppliers and service providers (381,849) (1,640,808) 284,591 (1,108,403) (2,846,469) Net cash provided by (used for) operating activities 1,178,636 1,445,525 1,284,591 252,827 4,161,579 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers to other funds (350) - - - (350) Net cash provided by (used for) noncapital financing activities (350) - - - (350) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (252,321) (403,902) (1,386,693) - (2,042,916) Principal paid on capital debt - (213,365) - - (213,365) Interest paid on capital debt - (26,377) - - (26,377) Net cash provided by (used for) capital and related financing activities (252,321) (643,644) (1,386,693) - (2,282,658) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 217,895 156,616 176,370 21,792 572,673 Net cash provided by (used for) investing activities 217,895 156,616 176,370 21,792 572,673 Net increase (decrease) in cash and cash equivalents 1,143,860 958,497 74,268 274,619 2,451,244 Cash and cash equivalents-beginning 4,206,434 2,997,084 3,770,268 611,912 11,585,698 Cash and cash equivalents-ending 5,350,294$ 3,955,581$ 3,844,536$ 886,531$ 14,036,942$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Operating income (loss)639,383$ 868,199$ (23,112)$ 252,690$ 1,737,160$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation/amortization expense 522,457 477,564 605,913 - 1,605,934 (Increase) decrease in prepaid items - 131,254 - 1,002 132,256 Increase (decrease) in accounts payable 16,796 (31,910) 701,790 (865) 685,811 Increase (decrease) in accrued liabilities - 418 - - 418 Total adjustments 539,253 577,326 1,307,703 137 2,424,419$ Net cash provided by (used for) operating activities 1,178,636$ 1,445,525$ 1,284,591$ 252,827$ 4,161,579$ Equipment Replacement Information Technology Park Equipment and Facilities Insurance 124 201 Statistical Section For the Year Ended June 30, 2024 City of La Quinta, California 125 202 THIS PAGE INTENTIONALLY LEFT BLANK 126 203 City of La Quinta, California Statistical Section For the Year Ended June 30, 2024    This part of the City of La Quinta’s annual comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 128 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property taxes. 142 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of understanding debt and the City's ability to use additional debt in the future. 152 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with 159 other governments. Operating Information These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. 162 Sources: Unless otherwise noted, the information in these schedules are derived from the annual comprehensive financial reports for the relevant year.                   127 204 CITY OF LA QUINTA, CALIFORNIA Net Position by Component Last Ten Fiscal Years (Accrual basis of accounting) 2015 2016 2017 2018 2019 Governmental Activities Net investment in capital assets 523,495,389$ 516,499,682$ 517,039,487$ 510,913,594$ 519,221,969$ Restricted 62,472,221 61,148,731 38,824,860 39,204,789 44,815,499 Unrestricted 74,362,189 84,439,071 118,125,125 130,950,644 138,584,041 Total Governmental Activities Net Position 660,329,799 662,087,484 673,989,472 681,069,027 702,621,509 Business-Type Activities Net investment in capital assets 44,118,111 43,898,784 43,836,868 43,585,880 43,375,536 Restricted - - - - - Unrestricted (4,892,647) (5,086,906) (5,140,966) (5,203,212) 240,125 Total Business-Type Activities Net Position 39,225,464 38,811,878 38,695,902 38,382,668 43,615,661 Primary Government Net investment in capital assets 567,613,500 560,398,466 560,876,355 554,499,474 562,597,505 Restricted 62,472,221 61,148,731 38,824,860 39,204,789 44,815,499 Unrestricted 69,469,542 79,352,165 112,984,159 125,747,432 138,824,166 Total Primary Government Net Position 699,555,263 700,899,362 712,685,374 719,451,695 746,237,170 Fiscal Year Source:City of La Quinta 128 205 TABLE 1 2020 2021 2022 2023 2024 Governmental Activities: 509,777,422$ 519,203,177$ 517,697,036$ $ 532,627,757 549,197,719$ Net investment in capital assets 46,001,248 46,711,801 54,412,355 62,283,620 70,215,219 Restricted 142,418,499 162,887,430 190,618,323 220,277,110 241,361,988 Unrestricted 698,197,169 728,802,408 762,727,717 815,188,487 860,774,926 Total Governmental Activities Net Position Business-Type Activities: 39,712,955 42,717,914 42,491,762 42,242,526 42,863,554 Net investment in capital assets - - - - - Restricted 3,145,820 368,750 1,036,834 1,166,307 1,365,595 Unrestricted 42,858,775 43,086,664 43,528,596 43,408,833 44,229,149 Total Business-Type Activities Net Position Primary Government: 549,490,377 561,921,091 560,188,798 574,870,283 592,061,273 Net investment in capital assets 46,001,248 46,711,801 53,601,581 62,283,620 70,215,219 Restricted 145,564,319 163,256,180 192,465,934 221,443,417 242,727,583 Unrestricted 741,055,944 771,889,072 806,256,313 858,597,320 905,004,075 Total Primary Government Net Position Fiscal Year 129 206 CITY OF LA QUINTA, CALIFORNIA Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) 2015 2016 2017 2018 2019 Expenses Governmental activities: General government 5,166,732$ 5,645,004$ 5,565,727$ 8,869,174$ 9,085,863$ Public safety 21,636,149 22,067,603 23,378,824 22,508,088 23,164,976 Planning and development 2,212,013 3,359,732 2,882,321 4,352,134 5,913,321 Community services 5,992,362 6,214,098 6,584,268 9,231,268 6,202,084 Public works 18,116,732 12,157,245 10,927,160 15,580,975 4,430,519 Contribution to other agencies - - - - - Interest on long-term debt 340,716 343,129 309,463 1,468,971 210,941 Total governmental activities expenditures 53,464,704 49,786,811 49,647,763 62,010,610 49,007,703 Business-type activities: Golf course 5,053,360 4,373,586 3,965,644 4,318,463 4,558,922 Total business-type activities expenditures 5,053,360 4,373,586 3,965,644 4,318,463 4,558,922 58,518,064 54,160,397 53,613,407 66,329,073 53,566,625 Program Revenues Governmental activities: Charges for services: General government 121,140 192,538 504,127 883,153 516,115 Public safety 1,655,421 1,378,704 341,368 367,848 376,249 Planning and development 489,589 467,053 564,327 724,499 636,683 Community services 307,869 386,824 453,098 442,656 479,542 Public works 1,197,069 1,134,630 741,703 1,054,902 1,119,816 Operating grants and contributions 16,829,107 12,213,338 6,187,803 4,259,916 5,623,509 Capital grants and contributions 3,536,444 1,076,145 3,316,153 4,455,060 5,462,395 Total governmental activities program revenues 24,136,639 16,849,232 12,108,579 12,188,034 14,214,310 Business-type activities: Charges for services: Golf course 3,561,857 3,621,495 3,446,340 3,567,718 3,773,396 Capital grants and contributions 2,872,122 - - - - Total business-type activities program revenues 6,433,979 3,621,495 3,446,340 3,567,718 3,773,396 30,570,618 20,470,727 15,554,919 15,755,752 17,987,706 Net Revenues (Expenditures): Governmental activities (29,328,065) (32,937,579) (37,539,184) (49,822,576) (34,793,394) Business-type activities 1,380,619 (752,091) (519,304) (750,745) (785,526) (27,947,446) (33,689,670) (38,058,488) (50,573,321) (35,578,920) Total Primary Government Expenditures Total Primary Government Program Revenues Total Net Revenues (Expenditures) Fiscal Year 130 207 TABLE 2 2020 2021 2022 2023 2024 Expenditures: Governmental activities: 9,877,251$ 8,106,209$ 9,733,224$ 17,213,248$ 10,727,413$ General government 24,009,725 24,429,310 25,741,782 25,457,350 29,156,519 Public safety 5,845,836 6,508,522 4,716,745 3,146,264 8,432,348 Planning and development 11,362,950 6,958,234 8,439,863 9,550,001 13,647,971 Community services 32,248,031 11,438,197 14,985,480 14,043,797 10,982,293 Public works - - - - - Contribution to other agencies 98,049 42,081 11,914 25,504 48,204 Interest on long-term debt 83,441,842 57,482,553 63,629,008 69,436,164 72,994,748 Total governmental activities expenditures Business-type activities: 4,148,190 4,169,286 4,746,281 5,520,342 5,643,061 Golf course 4,148,190 4,169,286 4,746,281 5,520,342 5,643,061 Total business-type activities expenditures 87,590,032 61,651,839 68,375,289 74,956,506 78,637,809 Total Primary Government Expenditures Program Revenues: Governmental activities: Charges for services: 615,348 1,541,535 1,402,810 1,716,965 3,861,857 General government 367,277 770,760 648,914 555,423 988,238 Public safety 799,040 710,529 1,315,760 1,356,426 - Planning and development 366,896 178,554 137,769 185,979 - Community services 1,436,362 1,503,633 3,378,132 2,736,907 71,595 Public works 7,817,482 4,413,523 5,786,773 7,136,358 7,265,464 Operating grants and contributions 9,613,752 15,770,048 11,952,031 8,760,788 14,078,555 Capital grants and contributions 21,016,157 24,888,582 24,622,189 22,448,846 26,265,709 Total governmental activities program revenues Business-type activities: Charges for services: 2,746,748 3,509,096 4,679,163 4,767,458 4,965,124 Golf course - - - - - Capital grants and contributions 2,746,748 3,509,096 4,679,163 4,767,458 4,965,124 Total business-type activities program revenues 23,762,905 28,397,678 29,301,352 27,216,304 31,230,833 Total Primary Government Program Revenues Net Revenues (Expenditures): (62,425,685) (32,593,971) (39,006,040) (46,987,318) (46,729,039) Governmental activities (1,401,442) (660,190) (67,118) (752,884) (677,937) Business-type activities (63,827,127) (33,254,161) (39,073,158) (47,740,202) (47,406,976) Total Net Revenues (Expenditures) Fiscal Year 131 208 CITY OF LA QUINTA, CALIFORNIA Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) 2015 2016 2017 2018 2019 Fiscal Year General Revenues and Other Changes in Net Position: Governmental activities: Taxes: Property taxes 8,776,491 8,798,296 15,521,335 15,887,015 16,423,843 Transient occupancy taxes 6,637,183 7,835,745 9,433,970 10,752,788 11,230,915 Sales tax 8,873,008 9,107,046 10,060,305 18,956,985 20,905,243 Franchise taxes 1,861,453 1,799,938 1,815,491 1,977,179 2,032,848 Business license taxes 306,087 334,465 365,451 345,187 418,707 Other taxes 530,336 516,964 585,333 718,472 713,237 Motor vehicle in lieu, unrestricted 3,486,367 3,651,549 3,813,213 3,941,348 4,086,536 Investment income 1,981,343 2,390,468 442,710 803,654 5,150,613 Net Increase (Decrease) of Investment Fair Value Gain (loss) on sale of capital assets - - - - - Miscellaneous 296,346 376,193 460,614 649,566 394,347 Special Item (interfund loan payoff)- - - - (5,553,561) Extraordinary gain/loss on dissolution of RDA - - 7,344,050 3,624,121 993,148 Transfers (247,739) (115,400) (401,300) (434,000) (450,000) Total governmental activities 32,500,875 34,695,264 49,441,172 57,222,315 56,345,876 Business-type activities: Investment income 2,043 4,282 2,028 3,511 14,958 Net Increase (Decrease) of Investment Fair Value Gain (loss) on sale of capital assets - - - - - Miscellaneous 915,164 218,823 - - 5,553,561 Transfers 247,739 115,400 401,300 434,000 450,000 Total business-type activities 1,164,946 338,505 403,328 437,511 6,018,519 Total Primary Government 33,665,821 35,033,769 49,844,500 57,659,826 62,364,395 Changes in Net Position Governmental activities 3,172,810 1,757,685 11,901,988 7,399,739 21,552,482 Business-type activities 2,545,565 (413,586) (115,976) (313,234) 5,232,993 Total Primary Government 5,718,375 1,344,099 11,786,012 7,086,505 26,785,475 Source: City of La Quinta For fiscal 2018/19, there is a one-time entry for an interfund loan noted as a 'special item' under governmental activities and 'miscellaneous' under business type activities. This is also discussed in the Notes to Basic Financial Statements section of the 2018/19 CAFR, Note 19: Special Item. 132 209 TABLE 2 2020 2021 2022 2023 2024 Fiscal Year General Revenues and Other Changes in Net Position: Governmental activities: Taxes: 16,710,544 16,893,629 17,823,858 20,697,081 24,646,620 Property taxes 8,079,394 11,847,139 18,365,424 19,262,569 15,682,835 Transient occupancy taxes 19,136,015 23,323,549 28,204,906 28,888,079 29,601,430 Sales tax 1,996,593 2,055,505 2,240,468 2,375,729 2,419,887 Franchise taxes 378,744 383,551 446,745 489,738 395,593 Business license taxes 662,545 1,568,997 1,352,585 926,743 1,102,546 Other taxes 4,290,417 4,376,455 4,663,327 5,110,569 5,584,194 Motor vehicle in lieu, unrestricted 5,110,358 1,427,664 219,164 5,058,717 12,708,191 Investment income (5,727,183) (1,519,171) - Net Increase (Decrease) of Investment Fair Value - - - - - Gain (loss) on sale of capital assets 1,404,143 1,457,788 943,160 1,432,619 1,640,182 Miscellaneous - - - - - Special Item (interfund loan payoff) 867,792 739,933 609,515 Extraordinary gain/loss on dissolution of RDA (635,200) (875,000) (550,000) (600,000) (1,466,000) Transfers 58,001,345 63,199,210 68,591,969 82,122,673 92,315,478 Total governmental activities Business-type activities: 9,356 13,081 4,329 12,456 32,253 Investment income (45,279) 20,665 - Net Increase (Decrease) of Investment Fair Value - - - - - Gain (loss) on sale of capital assets - - - - - Miscellaneous 635,200 875,000 550,000 600,000 1,466,000 Transfers 644,556 888,081 509,050 633,121 1,498,253 Total business-type activities 58,645,901 64,087,291 69,101,019 82,755,794 93,813,731 Total Primary Government Changes in Net Position (4,424,340) 30,605,239 29,585,150 35,135,355 45,586,439 Governmental activities (756,886) 227,891 441,932 (119,763) 820,316 Business-type activities (5,181,226) 30,833,130 30,027,082 35,015,592 46,406,755 Total Primary Government 133 210 CITY OF LA QUINTA, CALIFORNIA Changes in Net Position - Governmental Activities Last Ten Fiscal Years (Accrual basis of accounting) 2015 2016 2017 2018 2019 Expenses General government 5,166,732$ 5,645,004$ 5,565,727$ 8,869,174$ 9,085,863$ Public safety 21,636,149 22,067,603 23,378,824 22,508,088 23,164,976 Planning and development 2,212,013 3,359,732 2,882,321 4,352,134 5,913,321 Community services 5,992,362 6,214,098 6,584,268 9,231,268 6,202,084 Public works 18,116,732 12,157,245 10,927,160 15,580,975 4,430,519 Contribution to other agencies - - - - - Interest on long-term debt 340,716 343,129 309,463 1,468,971 210,941 Total Governmental Activities Expenditures 53,464,704 49,786,811 49,647,763 62,010,610 49,007,703 Program Revenues Charges for services: General government 121,140 192,538 504,127 883,153 516,115 Public safety 1,655,421 1,378,704 341,368 367,848 376,249 Planning and development 489,589 467,053 564,327 724,499 636,683 Community services 307,869 386,824 453,098 442,656 479,542 Public works 1,197,069 1,134,630 741,703 1,054,902 1,119,816 Operating grants and contributions 16,829,107 12,213,338 6,187,803 4,259,916 5,623,509 Capital grants and contributions 3,536,444 1,076,145 3,316,153 4,455,060 5,462,395 24,136,639 16,849,232 12,108,579 12,188,034 14,214,310 Net Revenues (Expenditures)(29,328,065) (32,937,579) (37,539,184) (49,822,576) (34,793,394) General Revenues and Other Changes in Net Position Taxes: Property taxes 8,776,491 8,798,296 15,521,335 15,887,015 16,423,843 Transient occupancy taxes 6,637,183 7,835,745 9,433,970 10,752,788 11,230,915 Sales tax 8,873,008 9,107,046 10,060,305 18,956,985 20,905,243 Franchise tax 1,861,453 1,799,938 1,815,491 1,977,179 2,032,848 Business license taxes 306,087 334,465 365,451 345,187 418,707 Other tax 530,336 516,964 585,333 718,472 713,237 Motor vehicle in lieu, unrestricted 3,486,367 3,651,549 3,813,213 3,941,348 4,086,536 Investment income 1,981,343 2,390,468 442,710 803,654 5,150,613 Net Increase (Decrease) of Investment Fair Value Gain (loss) on sale of capital assets - 376,193 460,614 649,566 394,347 Miscellaneous 296,346 - - - - Special item (interfund loan payoff)(5,553,561) Extraordinary gain/loss on dissolution of RDA - - 7,344,050 3,624,121 993,148 Transfers (247,739) (115,400) (401,300) (434,000) (450,000) Total Governmental Activities 32,500,875 34,695,264 49,441,172 57,222,315 56,345,876 Changes in Net Position 3,172,810 1,757,685 11,901,988 7,399,739 21,552,482 Total Governmental Activities Program Revenues Fiscal Year Source:City of La Quinta 134 211 TABLE 3 2020 2021 2022 2023 2024 Expenditures: 9,877,251$ 8,106,209$ 9,732,445$ 17,213,248$ 10,727,413$ General government 24,009,725 24,429,310 25,741,782 25,457,350 29,156,519 Public safety 5,845,836 6,508,522 4,716,745 3,146,264 8,432,348 Planning and development 11,362,950 6,958,234 8,439,863 9,550,001 13,647,971 Community services 32,248,031 11,438,197 14,985,480 14,043,797 10,982,293 Public works - - - - - Contribution to other agencies 98,049 42,081 11,914 25,504 48,204 Interest on long-term debt 83,441,842 57,482,553 63,628,229 69,436,164 72,994,748 Total Governmental Activities Expenditures Program Revenues: Charges for services: 615,348 1,541,535 1,402,810 1,716,965 3,861,857 General government 367,277 770,760 648,914 555,423 988,238 Public safety 799,040 710,529 1,315,760 1,356,426 - Planning and development 366,896 178,554 137,769 185,979 - Community services 1,436,362 1,503,633 3,378,132 2,736,907 71,595 Public works 7,817,482 4,413,523 5,786,773 7,136,358 7,265,464 Operating grants and contributions 9,613,752 15,770,048 11,952,031 8,760,788 14,078,555 Capital grants and contributions 21,016,157 24,888,582 24,622,189 22,448,846 26,265,709 Total Governmental Activities Program Revenues (62,425,685) (32,593,971) (39,006,040) (46,987,318) (46,729,039) Net Revenues (Expenditures) General Revenues and Other Changes in Net Position: Taxes: 16,710,544 16,893,629 17,823,858 20,697,081 24,646,620 Property taxes 8,079,394 11,847,139 18,365,424 19,262,569 15,682,835 Transient occupancy taxes 19,136,015 23,323,549 28,204,906 28,888,079 29,601,430 Sales tax 1,996,593 2,055,505 2,240,468 2,375,729 2,419,887 Franchise tax 378,744 383,551 446,745 489,738 395,593 Business license taxes 662,545 1,568,997 1,352,585 926,743 1,102,546 Other tax 4,290,417 4,376,455 4,663,327 5,110,569 5,584,194 Motor vehicle in lieu, unrestricted 5,110,358 1,427,664 219,164 5,058,717 12,708,191 Investment income (5,727,183) (1,519,171) - Net Increase (Decrease) of Investment Fair Value 1,404,143 1,457,788 942,381 - - Gain (loss) on sale of capital assets - - - 1,432,619 1,640,182 Miscellaneous - - - - - Special item (interfund loan payoff) 867,792 739,933 609,515 - - Extraordinary gain/loss on dissolution of RDA (635,200) (875,000) (550,000) (600,000) (1,466,000) Transfers 58,001,345 63,199,210 68,591,190 82,122,673 92,315,478 Total Governmental Activities (4,424,340) 30,605,239 29,585,150 35,135,355 45,586,439 Changes in Net Position Fiscal Year 135 212 CITY OF LA QUINTA, CALIFORNIA Changes in Net Position - Business-type Activities Last Ten Fiscal Years (Accrual basis of accounting) 2015 2016 2017 2018 2019 Expenses Golf course 5,053,360$ 4,373,586$ 3,965,644$ 4,318,463$ 4,558,922$ Total Business-Type Activities Expenditures 5,053,360 4,373,586 3,965,644 4,318,463 4,558,922 Program revenues Charges for services: Golf course 3,561,857 3,621,495 3,446,340 3,567,718 3,773,396 Capital grants and contributions 2,872,122 - - - - 6,433,979 3,621,495 3,446,340 3,567,718 3,773,396 Net Revenues (Expenditures)1,380,619 (752,091) (519,304) (750,745) (785,526) General Revenues and Other Changes in Net Position Investment income 2,043 4,282 2,028 3,511 14,958 Net Increase (Decrease) of Investment Fair Value Gain (loss) on sale of capital assets - - - - - Miscellaneous 915,164 218,823 - - 5,553,561 Transfers 247,739 115,400 401,300 434,000 450,000 Capital contributions - - - - - Total Business-Type Activities 1,164,946 338,505 403,328 437,511 6,018,519 Changes in Net Position 2,545,565 (413,586) (115,976) (313,234) 5,232,993 Total Business-Type Activities Program Revenues Fiscal Year Source:City of La Quinta 136 213 TABLE 4 2020 2021 2022 2023 2024 Expenditures: 4,148,190$ 4,169,286$ 4,746,281$ 5,520,342$ 5,643,061$ Golf course 4,148,190 4,169,286 4,746,281 5,520,342 5,643,061 Total Business-Type Activities Expenditures Program revenues: Charges for services: 2,746,748 3,509,096 4,679,163 4,767,458 4,965,124 Golf course - - - - - Capital grants and contributions 2,746,748 3,509,096 4,679,163 4,767,458 4,965,124 (1,401,442) (660,190) (67,118) (752,884) (677,937) Net Revenues (Expenditures) General Revenues and Other Changes in Net Position: 9,356 13,081 4,329 12,456 32,253 Investment income (45,279) 20,665 - Net Increase (Decrease) of Investment Fair Value - - - - - Gain (loss) on sale of capital assets - - - - - Miscellaneous 635,200 875,000 550,000 600,000 1,466,000 Transfers - - - - - Capital contributions 644,556 888,081 509,050 633,121 1,498,253 Total Business-Type Activities (756,886) 227,891 441,932 (119,763) 820,316 Changes in Net Position Total Business-Type Activities Program Revenues Fiscal Year 137 214 CITY OF LA QUINTA, CALIFORNIA Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) 2015 2016 2017 2018 2019 General fund Nonspendable: Prepaid costs 15,653$ 204,589$ 10,578$ 90,657$ 37,182$ Land held for resale 8,320,000 8,320,000 8,320,000 8,320,000 5,730,990 Advances to other funds 14,943,098 14,974,800 15,022,660 14,954,085 - Deposits 33,985 - - - - Due from Other Governments 26,715,575 25,105,681 29,154,040 29,611,707 27,915,770 Restricted for: Section 115 Trust (Note 11)6,540,000 Committed: Emergency Reserve(2)15,372,600 15,576,000 16,534,000 - - Natural Disaster Reserve(2)7,400,000 10,000,000 Economic Disaster Reserve(2)8,140,000 11,000,000 Post retirement health benefits(3)1,523,401 1,523,400 1,523,400 - - Capital Replacement Reserve(2)1,727,390 2,302,000 - 5,000,000 5,000,000 Cash Flow Reserve(2)3,843,150 3,894,000 4,134,000 5,000,000 5,000,000 Pension Trust(4)- - - 2,000,000 - Carryovers 476,400 4,274,046 120,000 2,186,500 745,300 Assigned: Public Safety (Note 14)- - 9,371,699 9,754,327 9,864,841 Sales Tax Reserve (Note 14)- - - 5,169,970 7,721,975 Capital Projects (Note 14)- - 6,322,570 4,996,815 11,853,162 Unassigned 13,837,312 13,822,012 16,949,526 19,199,506 16,228,627 Total general fund 86,808,564 98,565,571 107,462,473 121,823,567 117,637,847 All other governmental funds Nonspendable: Prepaid costs - 8,422 10,349 - 386 Restricted: Planning and development projects 13,108,499 18,211,200 22,664,093 22,607,600 22,996,435 Public safety 301,843 189,988 83,506 342,919 1,391,721 Community services 10,711,704 9,872,124 10,040,222 10,016,652 13,775,710 Public works 1,129,697 1,250,827 1,546,505 2,033,627 2,667,401 Capital Projects 3,873,699 3,597,221 4,490,534 4,203,991 3,904,492 Unassigned (12,703,744) (11,655,344) (11,423,008) (11,347,062) (1,852,211) Total all other governmental funds 16,421,698 21,474,438 27,412,201 27,857,727 42,883,934 Total Governmental Funds 103,230,262 120,040,009 134,874,674 149,681,294 160,521,781 Fiscal Year Notes: (1)In Fiscal Year 2016-17, the City recognized property tax held by the County of Riverside as available to fund current obligations and as such the General Fund fund balance was adjusted up by 8,569,043 to 98,565,571. See Note 19 for FY 2016-17 (2)In Fiscal year 2017-18, the City adopted a reserves policy which modified, added and/ or eliminated reserve category names. Emergency Reserves are now split into Natural Disaster and Economic Disaster, Working Capital Reserve was re-named Cash Flow Reserve, and Capital Replacement and Pension Trust were added. (3)In Fiscal Year 2017-18 the City opened a trust for Other Post Employment Benefits (OPEB), and this reserve was deposited into the trust. See Note 11. (4)In Fiscal Year 2018-19 the City opened a trust for Pension Benefits, and this reserve was deposited into the trust. See Note 12. Source:City of La Quinta 138 215 TABLE 5 2020 2021 2022 2023 2024 General fund: Nonspendable: 14,065$ 25,246$ 46,990$ 125,993$ 170,577$ Prepaid costs 5,403,652 5,403,652 5,403,652 5,403,652 5,403,652 Land held for resale - - - - Advances to other funds - - - - - Deposits 26,069,742 24,070,622 21,915,347 19,600,793 17,123,777 Due from Other Governments Restricted for: 10,249,738 11,381,922 10,137,888 5,317,487 5,666,575 Section 115 Trust (Note 11) Committed: - - - - - Emergency Reserve(2) 10,000,000 10,000,000 10,000,000 15,000,000 15,000,000 Natural Disaster Reserve(2) 6,800,000 11,000,000 11,000,000 13,000,000 13,000,000 Economic Disaster Reserve(2) - - - - - Post retirement health benefits(3) 6,540,000 10,000,000 10,000,000 12,000,000 12,000,000 Capital Replacement Reserve(2) 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 Cash Flow Reserve(2) - - - - Pension Trust(4) 1,778,800 1,209,870 1,209,100 2,600,009 900,000 Carryovers Assigned: 10,491,654 11,423,931 11,183,821 11,986,970 15,652,616 Public Safety (Note 14) 8,736,219 15,128,658 15,355,043 29,214,191 32,985,374 Sales Tax Reserve (Note 14) 13,155,144 13,431,089 30,761,847 22,623,372 21,666,520 Capital Projects (Note 14) 19,094,651 24,241,553 33,893,325 44,105,041 65,216,616 Unassigned 123,333,665 142,316,543 165,907,013 185,977,508 209,785,707 Total general fund All other governmental funds: Nonspendable: 2,875 1,019 96,590 468 500 Prepaid costs Restricted: 23,680,641 24,751,443 25,118,552 27,585,913 29,154,058 Planning and development projects 1,607,101 931,352 1,073,419 1,278,307 1,287,208 Public safety 14,376,472 12,813,788 13,159,532 15,711,786 14,634,322 Community services 3,208,072 5,196,324 7,353,021 7,535,519 7,512,849 Public works 3,128,962 3,018,894 6,897,057 9,794,607 11,626,051 Capital Projects (5,175,243) (3,182,262) (2,483,120) (8,064,140) (4,098,801) Unassigned 40,828,880 43,530,558 51,215,051 53,842,460 60,116,187 Total all other governmental funds 164,162,545 185,847,101 217,122,064 239,819,968 269,901,894 Total Governmental Funds Fiscal Year 139 216 CITY OF LA QUINTA, CALIFORNIA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) 2015 2016 2017 2018 2019 Revenues Taxes 26,678,471$ 28,057,989$ 41,832,117$ 44,931,250$ 48,462,493$ Assessments 940,221 944,050 953,699 950,541 961,633 Licenses and permits 1,356,978 1,161,820 1,118,911 1,394,820 1,555,026 Intergovernmental 15,702,943 14,960,676 4,870,334 12,555,259 14,075,980 Charges for services 1,341,438 1,332,541 1,021,336 1,279,864 1,170,825 Use of money and property 1,950,957 7,475,742 4,659,301 2,388,683 4,824,651 Contributions, fines, and forfeitures 1,956,452 28,459 348,345 375,390 375,491 Developer participation 2,803,681 1,441,075 1,042,568 1,534,628 2,231,471 Miscellaneous 580,843 992,282 289,047 1,196,057 2,425,675 Total Revenues 53,311,984 56,394,634 56,135,658 66,606,492 76,083,245 Expenditures Current: General government 5,050,425 5,267,024 5,845,197 7,737,111 10,129,408 Public safety 21,664,472 22,125,962 23,377,755 22,508,088 23,164,976 Planning and development 2,097,525 3,294,259 2,549,779 4,310,589 6,415,466 Community services 4,798,123 4,983,038 4,626,401 5,236,083 5,944,200 Public works 5,283,309 4,101,210 4,025,958 4,146,135 4,219,461 Capital projects 11,097,186 7,209,874 6,859,428 9,015,861 9,096,460 Debt service: Principal retirement 594,383 632,615 651,625 666,988 650,000 Interest and fiscal charges 348,334 346,137 307,600 1,460,371 178,080 Total Expenditures 50,933,757 47,960,119 48,243,743 55,081,226 59,798,051 2,378,227 8,434,515 7,891,915 11,525,266 16,285,194 Other financing sources (uses): Proceeds from sale of land - - - - - Transfers in 12,037,331 6,420,538 21,503,514 7,432,340 12,942,596 Transfers out (12,322,714) (6,614,349) (21,904,814) (7,775,107) (13,826,890) Debt Issuance Proceeds(2)- - - - Capital leases 9,000 - - - Total Other Financing Sources (Uses)(276,383) (193,811) (401,300) (342,767) (884,294) Extraordinary gain/loss on dissolution of RDA - - 7,344,050 3,624,121 993,148 Special item (interfund loan payoff)- - - - (5,553,561) Net Change in Fund Balances 2,101,844$ 8,240,704$ 14,834,665$ 14,806,620$ 10,840,487$ 2.2%2.4%2.5%3.3%2.0% Excess (Deficiency) of Revenues Over (Under) Expenditures Debt Service as a Percentage of Noncapital Expenditures (1) Fiscal Year Notes: (1) The capitalizable expenditures were derived from the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds and Note 4, Capital Assets. (2)Values are from accouting entries related to GASB 87 - Leases. 140 217 TABLE 6 2020 2021 2022 2023 2024 Revenues: 44,881,038$ 53,493,786$ 65,107,160$ 67,267,115$ 78,926,323$ Taxes 957,017 984,435 969,257 981,315 988,238 Assessments 1,913,519 2,020,596 4,521,449 3,994,989 2,820,613 Licenses and permits 17,107,595 25,720,328 15,989,135 16,353,942 21,243,975 Intergovernmental 1,179,592 964,710 1,623,951 1,558,784 1,494,422 Charges for services 5,219,088 2,601,482 (3,545,192) 4,592,365 12,247,458 Use of money and property 665,193 779,606 657,589 563,494 408,125 Contributions, fines, and forfeitures 1,863,587 1,844,665 5,584,146 4,216,121 879,431 Developer participation 1,371,095 645,780 970,399 2,602,248 1,499,269 Miscellaneous 75,157,724 89,055,388 91,877,894 102,130,373 120,507,854 Total Revenues Expenditures Current: 7,732,495 8,464,230 10,515,771 20,967,405 7,601,346 General government 24,009,725 24,429,310 25,741,782 25,457,350 25,374,535 Public safety 5,436,281 6,544,477 5,234,065 6,503,091 7,590,589 Planning and development 6,159,707 5,583,420 6,325,904 8,063,457 12,785,671 Community services 5,421,606 5,287,280 5,654,080 6,470,613 7,117,820 Public works 23,150,511 18,219,385 7,167,446 14,180,312 28,482,857 Capital projects Debt service: - -10,705 10,764 24,452 Principal retirement 28,868 15,133 11,914 25,504 32,495 Interest and fiscal charges 71,939,193 68,543,235 60,661,667 81,678,496 89,009,765 Total Expenditures 3,218,531 20,512,153 31,216,227 20,451,877 31,498,089 Other financing sources (uses): -1,219,485 - - - Proceeds from sale of land 16,467,409 10,781,267 6,131,440 10,079,550 19,078,824 Transfers in (16,912,971) (11,568,281) (6,681,440) (10,679,550) (20,544,474) Transfers out - -- - 49,487 Debt Issuance Proceeds(2) - - - - - Capital leases (445,562) 432,471 (550,000) (600,000) (1,416,163)Total Other Financing Sources (Uses) 867,792 739,933 609,515 - - Extraordinary gain/loss on dissolution of RDA - - - - - Special item (interfund loan payoff) 3,640,761$ 21,684,557$ 31,275,742$ 19,851,877$ $ 30,081,926 Net Change in Fund Balances 0.06%0.03%0.06%0.06%0.09% Debt Service as a Percentage of Noncapital Expenditures (1) Excess (Deficiency) of Revenues Over (Under) Expenditures Fiscal Year 141 218 CITY OF LA QUINTA, CALIFORNIA TABLE 7 Tax Revenue by Source Last Ten Fiscal Years Fiscal Year Property Tax(1)Transient Occupancy Tax Sales Tax Franchise Tax Business License Tax Document Transfer Tax Total 2015 8,776,491 6,637,183 8,873,008 1,861,453 306,087 530,336 26,984,558 2016 8,798,296 7,835,745 9,107,046 1,799,938 334,465 516,964 28,392,454 2017 15,521,335 9,433,970 10,060,305 1,815,491 365,451 585,333 37,781,885 2018 15,887,015 10,752,788 18,956,985 1,977,179 345,187 718,472 48,637,626 2019 16,423,843 11,230,915 20,905,243 2,032,848 418,707 713,237 51,724,793 2020 16,710,544 8,079,394 19,136,015 1,996,593 378,744 662,545 46,963,835 2021 16,893,629 11,847,139 23,323,549 2,055,505 383,551 1,568,997 56,072,370 2022 17,823,858 18,365,424 28,204,906 2,240,468 446,745 1,352,585 68,433,986 2023 20,697,081 19,262,569 28,888,079 2,375,729 489,738 926,743 72,639,939 2024 24,646,620 15,682,835 29,601,430 2,419,887 395,593 1,102,546 73,848,911 Notes: (1) Starting in 2017, the revenue collected by the County that is remitted to the City for fire services is included in the property tax number. Source:City of La Quinta - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Tax Revenue by Source Property Tax(1)Transient Occupancy Tax Sales Tax Franchise Tax Business License Tax Document Transfer Tax 142 219 CITY OF LA QUINTA, CALIFORNIA TABLE 8 Top 25 Bradley-Burns Sales Tax Producers Current Year and Nine Years Ago (in dollars) Arco AM PM Service Stations Best Buy Electronics/Appliance Stores Circle K Service Stations Cliffhouse Fine Dining Chevrolet Cadillac of La Quinta New Motor Vehicle Dealers Costco Discount Dept. Stores Circle K Service Stations Floor & Décor Building Materials Cliffhouse Fine Dining G&M Oil Service Stations Costco Discount Dept. Stores Genesis/Hyundai of La Quinta New Motor Vehicle Dealers G & M Oil Service Stations Home Depot Building Materials Hyundai of La Quinta New Motor Vehicle Dealers In N Out Burger Quick-Service Restaurants Home Depot Building Materials Kohl's Department Stores Kohl's Department Stores La Quinta Chevrolet & Cadillac New Motor Vehicle Dealers La Quinta Resort & Club Hotels-Liquor La Quinta Resort & Club Hotels/Motels Lowe's Building Materials Lowe's Building Materials Marshalls Family Apparel Marshalls Family Apparel Ross Family Apparel McDonald's Quick-Service Restaurants Stater Bros Grocery Stores PGA West Private Clubhouse Leisure/Entertainment Stein Mart Department Stores Ross Family Apparel Stuft Pizza Bar & Grill Casual Dining Target Discount Dept. Stores Target Discount Dept. Stores TJ Maxx Family Apparel Torre Nissan New Motor Vehicle Dealers Torre Nissan New Motor Vehicle Dealers Tower Mart Service Stations Tower Mart Service Stations USA Gas Service Stations Ulta Beauty Specialty Stores Verizon Wireless Electronics/Appliance Stores Vons Grocery Stores Vintners Shell Station Service Stations Walmart Supercenter Discount Dept. Stores Walmart Supercenter Discount Dept. Stores 64.57%69.39% Service Stations Home Furnishings Fiscal Year 2014-15 Percent of Fiscal Year Total Paid by Top 25 Accounts:Percent of Fiscal Year Total Paid by Top 25 Accounts: Fiscal Year 2023-24 Business CategoryBusiness Name (1)Business Name (1)Business Category Electronics/Appliance Stores Arco AM/PM Bed Bath & Beyond Best Buy Notes: (1)Firms are listed alphabetically. State law does not allow for the disclosure of the sales tax revenue amounts by account. Top 25 businesses listed for state Bradley-Burns sales tax allocation only. For Top 25 business listings by local Measure G, see next page. Sales tax revenue chart includes total remitted for both. $0 $1 $1 $2 $2 $3 $3 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Combined Sales Tax Revenue (in millions) 143 220 THIS PAGE INTENTIONALLY LEFT BLANK 144 221 CITY OF LA QUINTA, CALIFORNIA TABLE 9 Top 25 Measure G Sales Tax Producers Current Year and Nine Years Ago (in dollars) Amazon Fulfillment Services General Merchandise Amazon MFA General Merchandise Best Buy Electronics/Appliance Stores Circle K Service Stations Costco Discount Dept. Stores Dept. of Motor Vehicles Allocation Used Automotive Dealers Desert European Motor Cars New Motor Vehicle Dealers Floor & Décor Building Materials Home Depot Building Materials In N Out Burger Quick-Service Restaurants Kohl's Department Stores La Quinta Chevrolet & Cadillac New Motor Vehicle Dealers La Quinta Resort & Club Hotels/Motels Lowe's Building Materials Marshalls Family Apparel Mathis Brothers Furniture Home Furnishings One Source Distributors Electrical Equipment PGA West Private Clubhouse Leisure/Entertainment Ross Family Apparel Target Discount Dept Stores Tesla Motors New Motor Vehicle Dealers TJ Maxx Family Apparel Tower Mart Service Stations Verizon Wireless Electronics/Appliance Stores Walmart Supercenter Discount Dept. Stores 45.06%Percent of Fiscal Year Total Paid by Top 25 Accounts: Measure G was passed in November 2016 and implemented on April 1, 2017. Ten-year is data not available. Fiscal Year 2023-24 Fiscal Year 2014-15 Business Name (1)Business Category Business Name Business Category Notes: (1)Firms are listed alphabetically. State law does not allow for the disclosure of the sales tax revenue amounts by account. Source:HdL, Coren & Cone 145 222 CITY OF LA QUINTA, CALIFORNIA Taxable Sales by Category (1) Last Ten Calendar Years (in thousands) 2014 2015 2016 2017 2018 25,461$ 25,115$ 26,280$ 31,822$ 34,508$ 216,871 208,189 206,808 222,767 232,147 25,748 22,845 25,359 25,964 26,126 101,647 106,216 115,974 117,064 122,255 73,087 75,658 78,299 83,383 86,569 84,826 87,440 83,010 81,264 82,702 47,541 40,777 34,566 37,558 42,164 101,721 105,284 107,648 104,834 114,980 150,746 155,173 172,135 180,360 210,360 827,648 826,697 850,079 885,016 951,811 Total Auto dealers and supplies Service stations Other retail stores All other outlets Calendar Year Building materials Eating and drinking places Apparel stores General merchandise Food stores Notes: (1)Due to confidentiality issues preventing the disclosure of the largest sales tax payers by business name, this categorical list has been provided as an alternative source of information regarding the City of La Quinta's sales tax revenue. Source:HdL. Coren & Cone Apparel stores 3% General merchandise 26% Food stores 3% Eating and drinking places 12% Building materials 9% Auto dealers and supplies 10% Service stations 6% Other retail stores 13% All other outlets 18% Taxable Sales Calendar Year 2012 146 223 TABLE 10 2019 2020 2021 2022 2023 33,937$ 24,929$ 38,612$ 39,992$ 42,479$ 235,969 235,841 274,045 300,399 296,503 26,191 30,610 30,350 32,324 33,113 132,184 100,187 149,526 169,175 177,698 Eating and drinking places 89,036 111,231 128,048 135,282 131,189 85,401 78,189 105,011 100,165 93,349 Auto dealers and supplies 42,998 33,742 46,985 56,830 48,871 111,239 101,620 140,854 139,870 138,811 220,260 222,916 260,247 298,944 297,830 977,215 939,265 1,173,678 1,272,981 1,259,843 Total Service stations Other retail stores All other outlets Apparel stores General merchandise Food stores Building materials Calendar Year Apparel stores 3% General merchandise 24% Food stores 3% Eating and drinking places 14% Building materials 10% Auto dealers and supplies 7% Service stations 4% Other retail stores 11% All other outlets 24% Taxable Sales Calendar Year 2021 147 224 CITY OF LA QUINTA, CALIFORNIA TABLE 11 Assessed Value of Taxable Property Last Ten Fiscal Years (in dollars) Fiscal Year Ended June 30,Residential Commercial Agriculture (4)Other (1) Unsecured Property (2) Home Owner Exemption(5) Taxable Assessed Value Direct Rate (3) 2015 10,116,938,804 1,061,204,501 65,769,114 77,926,274 106,672,900 (49,232,400) 11,379,279,193 1.0000 2016 10,634,834,332 1,088,406,355 64,533,443 79,120,572 113,142,376 (49,130,200) 11,930,906,878 1.0000 2017 11,071,273,174 1,195,736,674 57,463,638 71,281,946 110,768,767 (49,088,200) 12,457,435,999 1.0000 2018 11,462,635,317 1,227,709,957 59,538,912 61,350,883 105,984,928 (49,700,000) 12,867,519,997 1.0000 2019 11,869,224,686 1,288,839,436 61,861,498 85,526,307 95,584,154 (49,298,200) 13,351,737,881 1.0000 2020 12,394,924,833 1,292,239,063 91,242,090 139,850,650 110,001,629 (47,938,800) 13,980,319,465 1.0000 2021 12,962,202,378 755,379,455 62,798,676 537,520,834 89,135,215 (47,271,000) 14,359,765,558 1.0000 2022 13,470,995,430 758,841,326 59,428,116 816,367,506 104,233,962 (46,243,400) 15,163,622,940 1.0000 2023 14,665,975,863 823,683,645 65,165,909 1,047,386,146 110,581,331 (45,703,000) 16,667,089,894 1.0000 2024 15,365,946,120 1,096,916,675 69,306,718 1,558,864,221 155,766,114 (45,847,200) 18,200,952,648 1.0000 City of La Quinta, Tax District 02-2375 Notes:(1)Other includes dry farm, government owned, institutional, irrigated, miscellaneous, recreational, vacant, cross reference, and unknown. Starting in 2016, prior years 2007 through 2015 were adjustomatch current reporting categories for consistency. (2)Prior years 2012 through 2015 adjusted to match current reporting for consistency.(3)In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed.Each ytheassessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to aowner; at which time the new assessed value is the purchase price of the property sold. The assessed valuation data shown above represents only the data currently available with respect to the acmarketvalue of taxable property and is subject to the limitations described above.(4)In 2016 (and going forward) data will be obtained from California Municipal and The Auditor-Controller's Office. The existing column headers were slightly modified to accommodate the property tclassifications. The column labeled agriculture was formerly "industrial".(5)Prior to 2015, this column also included Exempt Property Valuations Source:: Cal Muni; County of Riverside Assessor Combined Tax Rolls Equalized Auditor and Assessor's Net; Riverside County Auditor-Controller $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000 $19,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Taxable Assessed Value (in millions) 148 225 CITY OF LA QUINTA, CALIFORNIA TABLE 12 Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value) Last Ten Fiscal Years 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Direct Rates (1): City of La Quinta 0.0760 0.0760 0.0760 0.0760 0.0646 0.0646 0.0646 0.0646 0.0646 0.06460 ERAF Share of La Quinta General Fund 0.0000 0.0000 0.0000 0.0000 0.0113 0.0113 0.0113 0.0113 0.0113 0.01133 Redevelopment Agency Project Area 1 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.00000 Redevelopment Agency Project Area 2 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.00000 County of Riverside 0.1958 0.1958 0.1958 0.1958 0.0978 0.0978 0.0978 0.0978 0.0978 0.09780 ERAF Share of County 0.0000 0.0000 0.0000 0.0000 0.0980 0.0980 0.0980 0.0980 0.0980 0.09798 County Free Library 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.02530 County Structure Fire Protection 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.05440 Coachella Valley Unified School District 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.43220 Desert Sands Unified School 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.00000 Desert Community College District 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.06980 Riverside County Office of Education 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.03800 Riverside County Regional Park & Open Space 0.0039 0.0039 0.0040 0.0040 0.0040 0.0040 0.0040 0.0040 0.0040 0.00395 CV Public Cemetery 0.0031 0.0031 0.0031 0.0031 0.0032 0.0032 0.0032 0.0032 0.0032 0.00315 CV Mosquito & Vector Control 0.0127 0.0126 0.0126 0.0126 0.0126 0.0127 0.0127 0.0127 0.0127 0.01269 Desert Recreation District 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.01920 CVWD State Water Project 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.02540 CV Resource Conservation 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.00033 CVWD Improvement District 1 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.01184 CVWD Storm Water Unit 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.03210 Total Direct Rate (2)1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Tax Rate Area 020-005 020-005 020-160 020-160 020-160 020-160 020-160 020-160 020-160 020-160 Coachella Valley Unified School District 0.1492 0.1322 0.1660 0.1761 0.1495 0.1488 0.1455 0.1367 0.1345 0.1284 Desert Sands Unified School 0.1098 0.1092 0.0860 0.0725 0.0742 0.0738 0.0739 0.0750 0.0750 0.0750 Coachella Valley Water District 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1100 0.1100 0.1100 Desert Community College District 0.0233 0.0209 0.0204 0.0403 0.0398 0.0398 0.0395 0.0395 0.0395 0.0395 Total Overlapping Rate 0.3823 0.3622 0.3724 0.3889 0.3635 0.3624 0.3589 0.3611 0.3590 0.3529 Total Direct and Overlapping Rate 1.3823 1.3622 1.3724 1.3889 1.3635 1.3625 1.3589 1.3612 1.3590 1.3529 Overlapping Rates (3) : City Non-Project Area Notes:(1)Direct rate from Tax Rate Area (TRA) 020-160 provided by HdL, Coren & Cone; data source Riverside County Assessor 2014/15-2023/24 Annual Tax Increment (Rate) Tables. Direct rate taken from an analysis of the TRA in the project area and does not include State ERAF deductions and overlapping rates provided by California Municipal Statistics (2)In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount for direct taxes. This 1% is shared by all taxing agencies for which the subject property resides within. (3)Overlapping rates are based upon a single tax rate area only. Source:County of Riverside Auditor Controller's Office; HdL, Coren & Cone 149 226 CITY OF LA QUINTA, CALIFORNIA TABLE 13 Principal Property Taxpayers Current Year and Nine Years Ago (in dollars) Rank Taxable Assessed Value (1) Percent of Total City Taxable Assessed Value Rank Taxable Assessed Value (1) Percent of Total City Taxable Assessed Value 1 221,831,750$ 1.22%-$ 0.00% 2 53,745,985 0.30%- 0.00% 3 52,820,577 0.29% 4 44,468,471 0.39% 4 48,102,924 0.26%- 0.00% Mediterra La Quinta Owner LLC 5 38,340,153 0.21%- 0.00% East Of Madison LLC 6 37,418,978 0.21% 5 43,656,182 0.38% CM Wave Dev 7 36,879,108 0.20%- 0.00% 8 36,010,874 0.20%- 0.00% 9 33,751,092 0.19% 8 28,819,695 0.25% 10 33,298,920 0.18%- 0.00% - - 1 151,380,164 1.33% - - 2 58,691,914 0.52% - - 3 45,242,598 0.40% Coral Option I - - 6 43,044,483 0.38% Town and Country Partners - - 7 30,170,000 0.27% Iota Griffin LLC - - 9 27,209,103 0.24% Aventine Development - - 10 24,427,256 0.21% Total 592,200,361$ 3.25% 497,109,866 4.37% TD Desert Development LP LQR Golf LLC Fiscal Year 2014-15 Inland American La Quinta Pavilion Fiscal Year 2023-24 HP LQ Investment LP HJ CG Partners LLC Hawthorn Il Propco Walmart KSL Desert Resort Taxpayer Milan LQ One XI LLC SilverRock Phase I LLC (1) Taxable valuations include secured and unsecured Source: HdL, Coren & Cone; Riverside County Assessor 2013/14 and 2022/23 Combined Tax Rolls and the SBE Non-Unitary Tax Roll (Preliminary) HP LQ Investment LP HJ CG Partners LLC Inland American La Quinta Pavilion Hawthorn Il Propco Mediterra La Quinta Owner LLC East Of Madison LLC CM Wave Dev SilverRock Phase I LLC Walmart Milan LQ One XI LLC Principal Property Tax Payers FY 2023-24 150 227 CITY OF LA QUINTA, CALIFORNIA TABLE 14 Property Tax Levies and Collections Last Ten Fiscal Years (in dollars) Fiscal Year Ended June 30 Taxes Levied for the Fiscal Year (1)Amount Percent of Levy Collections in Subsequent Years (2)Amount (3) Percent of Levy 2015 5,965,704 6,100,655 102.26%170,306 6,270,961 105.12% 2016 6,657,414 6,420,215 96.44%194,668 6,614,883 99.36% 2017 6,764,963 6,592,548 97.45%137,921 6,730,469 99.49% 2018 6,868,411 6,717,291 97.80%116,182 6,833,473 99.49% 2019 6,934,311 6,736,814 97.15%126,876 6,863,690 98.98% 2020(4)7,058,939 6,777,777 96.02%156,792 6,934,570 98.24% 2021 7,139,091 6,891,637 96.53%106,190 6,997,827 98.02% 2022 7,291,506 7,140,010 97.92%163,569 7,303,579 100.17% 2023 7,925,552 7,845,743 98.99%118,092 7,963,835 100.48% 2024 8,361,915 8,579,017 102.60%161,667 8,740,684 104.53% Total Collections to Date Collections within the Fiscal Year of Levy Notes: (1)Taxes Levied. The total tax levy is based on the Statement of Original Charge from the Riverside County Auditor-Controller Office. The amounts presented include City property taxes for tax districts 02-2374 and 02-2375 and are not inclusive of the redevelopment increment values. (2)Collections in Subsequent Years. The City participates in the Riverside County Teeter program; the secured taxes are remitted in a series of advances and settlement payments, the last of which is not received by the City until October of the subsequent year. (3)Collections to Date. The total amount does not include any apportionment adjustments that are the result of successful appeals of a taxpayer assessed valuation, escaped bills, refunds, or any other adjustments made by the County Auditor-Controller. As such, the percentage of the levy collected may be higher or lower than expected. Additionally, the increment values of the former Redevelopment Agency are allocated through a waterfall distribution process in accordance with California Health and Safety Code 34183 and 34188, and are not reflected on the Statement of Original Charge. (4)The statement of original charge that was posted on the Auditor-Controller (ACO) website had not been updated at time of publishing the 19/20 CAFR. The number reported in the 'taxes levied' column has now been adjusted to accurately reflect the ACO number, which subsequently changed the percent collected as well. Source: County of Riverside Auditor Controller's Office $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 2015 2016 2017 2018 2019 2020(4) 2021 2022 2023 2024 Property Tax Collections (in millions) 151 228 CITY OF LA QUINTA, CALIFORNIA Ratios of Outstanding Debt by Type (1) Last Ten Fiscal Years (in dollars) 2015 2016 2017 2018 2019 103,869$ 155,395$ 530,163$ 667,035$ 757,971$ 668,933 649,698 628,448 - - 1,367,344 1,325,596 1,280,221 - - Notes Payable- Eisenhower Drive Property - - 2,250,000 1,125,000 - - - - - - 2,405,000 1,850,000 1,265,000 650,000 - Total Governmental 4,545,146 3,980,689 5,953,832 2,442,035 757,971 Leases - - - - - Total Business-Type Activities - - - - - Total Primary Government 4,545,146 3,980,689 5,953,832 2,442,035 757,971 Population - State Department of Finance January 1 39,694 39,977 40,677 41,204 40,389 Number of Households 24,150 24,432 24,544 24,643 24,764 Median Household Income 97,526 99,157 104,749 107,447 117,802 Percentage of Personal Income 0.19%0.16%0.23%0.09%0.03% Debt Per Capita 115 100 146 59 19 Governmental Activities: Leases City Hall Lease Revenue Bonds Fiscal Year Ended Business-type Activities: Subscription IT Liabilities USDA Loan Provident Savings Loan Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Leases for business-type activities were added in FY 2022 as a result of GASB 87. Source: City of La Quinta; HDL, Coren & Cone 152 229 TABLE 15 2020 2021 2022 2023 2024 761,790$ 459,275$ 184,727$ 53,662$ 91,795$ ----- ----- -----Notes Payable- Eisenhower Drive Property ---495,674 282,309 ----- 761,790 459,275 184,727 549,336 374,104 Total Governmental --565,837 315,520 123,859 Leases --565,837 315,520 123,859 Total Business-Type Activities 761,790 459,275 750,564 864,856 497,963 Total Primary Government 40,660 41,247 37,860 37,979 38,370 Population - State Department of Finance January 1 24,957 25,177 23,796 -24,679 Number of Households 120,097 121,816 119,479 -134,351 Median Household Income 0.00%0.01%0.03% 0.03%0.02% Percentage of Personal Income -11 20 23 13 Debt Per Capita City Hall Lease Revenue Bonds Governmental Activities: Subscription IT Liabilities Leases USDA Loan Provident Savings Loan Fiscal Year Ended Business-type Activities: - 20 40 60 80 100 120 140 160 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 115 100 146 59 19 - 11 20 23 13 Debt Per Capita 153 230 CITY OF LA QUINTA, CALIFORNIA TABLE 16 Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (in dollars) Fiscal Year Ended June 30, City Hall Lease Obligation Local Agency Bonds Tax Allocation Bonds Total Percent of Assessed Value (2) Per Median Household Income 2015 2,405,000 - - 2,405,000 0.02%20 2016 1,850,000 - - 1,850,000 0.02%45 2017 1,265,000 - - 1,265,000 0.01%31 2018 650,000 - - 650,000 0.01%6 2019 - - - - 0.00%- 2020 - - - - 0.00%- 2021 - - - - 0.00%- 2022 - - - - 0.00%- 2023 - - - - 0.00%- 2024 - - - - 0.00%- Outstanding General Bonded Debt (1) Notes: (1)General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which the City has none) (2) Assessed value has been used because the actual value of taxable property is not readily available in the State of California. Source:City of La Quinta 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.02%0.02%0.01%0.01%0.00%0.00%0.00% 0.00% 0.00% 0.00% General Bonded Debt as a Percent of Assessed Value 154 231 CITY OF LA QUINTA, CALIFORNIA TABLE 17 Direct and Overlapping Debt June 30, 2024 (in dollars) Total Assessed Valuation (1)18,246,799,848$ Overlapping Debt (3) 16.53%664,990,000$ 109,936,147$ 51.16%207,760,779 106,292,492 20.17%349,520,000 70,487,698 88.91% 305,000 271,182 86.46%510,000 440,921 287,428,440 4.60% 652,187,035$ 29,994,082$ 4.60%670,785,000 30,849,402 51.16%34,227,380 17,511,070 20.17% 7,775,000 1,567,984 Desert Recreation District General Fund Obligations 26.94%1,194,811 321,930 Total Overlapping General Fund Debt 80,244,468 Overlapping Tax Increment Debt Successor Agencies 12.543% - 100%432,955,065 263,624,455 Total Overlapping Tax Increment Debt Total Gross Overlapping Debt 631,297,363 Less: Riverside County Supported Obligations - Total Net Overlapping Debt 631,297,363 374,104$ 374,104 374,104 631,671,467$ Estimated Share of Overlapping Debt Outstanding Debt 6/30/24 Percentage Applicable (2) Overlapping Tax and Assessment Debt Desert Community College District Coachella Valley Unified School District Desert Sands Unified School District (DSUSD) Total Overlapping Tax and Assessment Debt Overlapping General Fund Debt Riverside County General Fund Obligations Riverside County Pension Obligations Coachella Valley Unified School District Certificates of Participation (COP) Direct General Fund Debt Total Direct General Fund Debt DSUSD Community Facilities District No. 1 Total Net Combined Direct and Overlapping Debt Coachella Valley Water District Assessment District 68 City of La Quinta General Fund Obligations Desert Sands Unified School District COP Notes: (1) Total assessed valuation is from the Equalized Assessor report which includes homeowner exemptions. (2)For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the overlapping district's taxable assessed value that is within the city's boundaries divided by the district's total taxable assessed value. (3)Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However,this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. 155 232 CITY OF LA QUINTA, CALIFORNIA Legal Debt Margin Information Last Ten Fiscal Years (in dollars) 2015 2016 2017 2018 2019 Assessed valuation (1)11,369,346,292$ 11,930,906,878$ 12,457,435,999$ 12,867,519,997$ 13,351,737,881$ Conversion Percentage 25%25%25%25%25% Adjusted assessed valuation(2)2,842,336,573 2,982,726,720 3,114,359,000 3,216,879,999 3,337,934,470 Debt limit percentage (2)15%15%15%15%15% Debt limit 426,350,486 447,409,008 467,153,850 482,532,000 500,690,171 - - - - - Legal debt margin 426,350,486$ 447,409,008$ 467,153,850$ 482,532,000$ 500,690,171$ 0.0%0.0%0.0%0.0%0.0% Fiscal Year Total debt applicable to the limit as a percentage of debt limit General obligation bonds (3)Total net debt applicable to limit Notes: (1) Assessed Valuation is from the Equalized Auditor's Net report which excludes the homeowner exemptions (2)Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the gross assessed valuation or property. However, this provision was enacted when assessed valuation was based on 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State. This is the equivalent of 3.75% of the full assessed value. (3)The City of La Quinta has no general bonded indebtedness. 156 233 TABLE 18 2020 2021 2022 2023 2024 13,980,319,465$ 14,359,765,558$ 15,163,622,940$ 16,667,089,894$ 18,200,952,648$ Assessed valuation (1) 25%25%25%25%25% 3,495,079,866 3,589,941,390 3,790,905,735 4,166,772,474 4,550,238,162 15% 15% 15% 15% 15% Debt limit percentage (2) 524,261,980 538,491,208 568,635,860 625,015,871 682,535,724 Debt limit Total net debt applicable to limit - - - - - General obligation bonds (3) 524,261,980$ 538,491,208$ 568,635,860$ 625,015,871$ 682,535,724$ Legal debt margin 0.0% 0.0% 0.0% 0.0% 0.0% Fiscal Year Total debt applicable to the limit as a percentage of debt limit 157 234 CITY OF LA QUINTA, CALIFORNIA TABLE 19 Pledged-Revenue Coverage (1) Last Ten Fiscal Years (in dollars) Principal Interest 2015 673,046 - 673,046 525,000 148,046 1.00 2016 673,075 - 673,075 555,000 118,076 1.00 2017 671,441 - 671,441 585,000 86,441 1.00 2018 668,141 - 668,141 615,000 53,141 1.00 2019 668,038 - 668,038 650,000 18,038 1.00 2020 - - - - - - 2021 - - - - - - 2022 - - - - - - 2023 - - - - - - 2024 - - - - - - . Debt ServiceLess Other Debt Payments Net Lease Revenue Fiscal Year Ended June 30, Coverage Ratio (3) Local Agency Revenue Bonds (City Hall Project) Lease Revenue (2) Notes: (1)Details regarding the city's outstanding debt can be found in the notes to the financial statements. The City of La Quinta has no general bonded indebtedness. (2)Lease revenues consist of payments from the City General Fund and Civic Center Development Impact Fee Fund. (3)Coverage ratio is a measure of the City's ability to meet its obligation. A ratio of greater than or equal to one indicates that sufficient revenue has been generated to satisfy the debt service requirements. The ratio is calculated as total available revenue (net lease revenue) divided by total debt service requirements (principal and interest) . Source:City of La Quinta 158 235 CITY OF LA QUINTA, CALIFORNIA TABLE 20 Demographic and Economic Statistics Last Ten Calendar Years Sources 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (3) 35.71 35.71 35.71 35.71 35.71 35.71 35.71 35.71 35.71 35.71 (1)(3) 39,240 39,769 40,065 40,217 40,389 40,660 41,247 37,860 37,979 38,370 (4) $97,526 $99,157 $104,749 $107,447 $117,802 $120,097 $121,816 $119,479 $130,398 $134,351 (1) 24,150 24,432 24,544 24,643 24,764 24,957 25,177 23,796 24,233 24,679 (1) 2.60 2.62 2.64 2.63 2.68 2.60 2.60 2.60 2.34 2.32 (3) $37,510 $37,846 $39,288 $39,999 $42,931 $46,248 $47,986 $52,632 $53,899 $57,910 (2) 17,483 18,033 18,617 18,917 19,142 19,267 19,083 19,850 19,942 20,133 (2) 16,675 17,175 17,533 18,000 18,308 17,800 17,483 18,892 19,175 19,150 (2) 4.62% 4.76% 5.82% 4.85% 4.36% 7.61% 8.44% 4.83% 3.85% 4.88% (3) 45.1 45.3 45.7 46 46.4 47.1 47.9 48.6 49.6 51Median age Calendar Year Mean Household Income (in dollars) Number of Dwelling Units Persons per Household Labor Force Per Capita Income Employment City Land (Sq Miles) Population Unemployment Rate Sources: (1) State of California Department of Finance; State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties and the State, Sacramento, California, as of 1/1/2024. The estimates incorporate 2020 Census counts. (2) State of California Employment Development Department Website. Previous years' data updated in 2018/19 to utilize 12-month average and final numbers. Rise in average unemployment rate for 2019/20 was due to double digit unemployment at end of fiscal year due to the Coronavirus pandemic. (3) HdL, Coren & Cone (4) Mean Household Income from US Census Bureau American FactFinder report Table S1901 when available (years 2017-2023). Otherwise, calculated using "Persons per Household" multiplied by "Per Capita Income". 24,150 24,432 24,544 24,643 24,764 24,957 25,177 23,796 24,233 24,679 17,000 19,500 22,000 24,500 27,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Number of Dwelling Units 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Unemployment Rate $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Mean Household Income 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Per Capita Income and Unemployment Per Capita Income Unemployment Rate 159 236 CITY OF LA QUINTA, CALIFORNIA TABLE 21 Principal Employers Current Year and Nine Years Ago Activity Category Number of Employees Percent of Total Employment Rank Number of Employees Percent of Total Employment Government 1 1000-4999 5.01-25.07% 1 1,400 8.43% Golf Resort 1 1000-4999 5.01-25.07% 3 1,214 7.31% Golf Resort 2 500-999 2.51-5.01% 2 1,233 7.43% Retailer 3 250-499 1.25-2.50% 5 246 1.48% Retailer 3 250-499 1.25-2.50% 4 360 2.17% Healthcare 4 100-249 0.50-1.25% Retailer 4 100-249 0.50-1.25% 6 181 1.09% Retailer 4 100-249 0.50-1.25% Retailer 4 100-249 0.50-1.25% 7 152 0.92% Golf Resort 4 100-249 0.50-1.25% Golf Resort 4 100-249 0.50-1.25% 8 128 0.77% Retailer 4 100-249 0.50-1.25% 9 120 0.72% Retailer 4 100-249 0.50-1.25% Golf Resort 4 100-249 0.50-1.25% Retailer 10 100 0.60% Total employment listed 4,200-14,983 21.06-75.13%5,276 31.78% Total City Employment - July 1 20,133 16,600 Fiscal Year 2014-15 Quarry at La Quinta Employer Fiscal Year 2022-23 La Quinta Resort Eisenhower George & Julia Argyros Center Wal-Mart Super Center Rancho La Quinta Stater Bros Target Von's (1)Desert Sands Unified School District Costco (2)PGA West and Citrus Club Tradition Golf Course Lowe's Home Depot Kohl's Notes: For fiscal year 2022-23, the City has changed the formatting of employment reporting to reflect a category 'range' that businesses fall into, rather than an exact number. It was becoming increasingly difficult to obtain employment numbers from some local establishments as this is considered proprietary information. Additionally, this data format matches what is reported by the EDD and sourced from DataAxle. Reporting in this manner reflects the true seasonality of many of the jobs in our community, as employment at many of these firms is likely highest in the winter months when the population is at its peak. (1)Desert Sands Unified employs approximately 4,000 people district-wide, of which the following locations are located in La Quinta: the District Administrative Offices, La Quinta High School, La Quinta Middle School, Benjamin Franklin Elementary, and Truman Elementary (2) PGA West and Citrus Club are accounted for as one entity and as such, their employment numbers are reported together; the combined entities account for 9 golf courses, 5 clubhouses, 2 private clubs, and multiple restaurants. Source: Data Axle, LinkedIn, company websites, California EDD 160 237 CITY OF LA QUINTA, CALIFORNIA TABLE 22 Full-time City Employees by Function Last Ten Fiscal Years 2015 2016(1)2017 2018 2019 2020 2021(2)2022 2023 2024(3) 7.00 4.00 4.00 5.00 7.00 8.00 8.00 8.00 8.00 13.00 4.00 3.00 3.00 5.00 5.00 4.00 4.00 4.00 6.00 6.00 8.00 7.00 7.00 8.00 8.00 8.00 9.00 9.00 9.00 10.00 11.65 - - - - - - - - 9.00 - - - - - - - - - 10.00 - - - - - - - - - - 20.00 - - - - - - - - - 21.35 - - - - - 27.00 27.00 27.00 31.00 - 18.00 18.00 18.00 18.00 23.00 19.00 20.00 21.00 - - 27.00 27.00 29.00 32.00 33.00 18.00 18.00 20.00 21.00 - 19.00 19.00 19.00 19.00 19.00 - - - - Total 72.00 78.00 78.00 84.00 89.00 95.00 85.00 86.00 91.00 100.00 Facilities Finance Community Services Design and Development Community Resources Planning and Development Community Development Public Works City Manager Office City Clerk Function Public Safety Fiscal Year Notes: The City of La Quinta contracts with the County of Riverside for Police Services and with the California Department of Forest ry through a contract with the County of Riverside for Fire Services. In addition, the City-owned Golf Course is operated by Landmark Golf. These positions have not been included as these positions are not City employees. (1) During FY 2015-16 the City was subject to a major reorganization in an attempt to improve efficiency and controls that effectively terminated the Community Services, Community Development, and Public Works departments. Following is a brief description of the reorganization for each department: a)The Community Resources department has taken over specific roles of the prior Community Development and Community Services departments including, but not limited to human resources, police, fire, library, museum, recreation, marketing, code compliance, animal control, and emergency services. b)The Design and Development department has taken over specific roles of the prior Community Development, Public Works, and Finance departments including, but not limited to customer service, business and animal licensing, planning, building, engineering services, and development services. c)The Facilities department has taken over specific roles of the prior Community Services and Public Works departments including, but not limited to , parks, streets, buildings, lighting and landscaping. (2) During FY 2020-21 the City created the Public Works Division, consisting of the Facilities Division as well as Public Works, Engineering, and Capital Improvement (which were moved out of Design & Development). In addition, there were impacts due to the novel Coronavirus pandemic that led to a reduction in work force. (3) During FY 2023-24, the Community Resources Division was split into Community Services and Public Safety, with Human Resources moving under the purview of the City Manager's office. - 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 2015 2016(1) 2017 2018 2019 2020 2021(2) 2022 2023 2024(3) 72.00 78.00 78.00 84.00 89.00 95.00 85.00 86.00 91.00 100.00 Total Full-Time City Employees 161 238 CITY OF LA QUINTA, CALIFORNIA TABLE 23 Operating Indicators by Function Last Ten Fiscal Years 2015 2016 2017 2018 2019 2020(3)2021(3)2022 2023 2024 Finance: Number of Animal Licenses Processed (1)1,374 ---- - - - - - Number of Accounts Payable Checks Processed 3,833 4,153 3,835 3,621 3,879 3,855 2,998 3,014 3,196 2,902 Number of investment purchases 21 22 20 61 56 49 32 93 98 85 Par value of investments 128,990,447$ 137,594,669$ 139,613,063$ 150,117,079$ 163,665,838$ 170,194,404$ 187,171,960$ 223,319,336$ 248,005,525$ 280,479,484$ Number of cleared checks 4,004 4,167 3,932 3,813 3,875 3,962 2,977 2,989 3,078 2,962 Number of bank wires, drafts, and EFTs(4)54 41 44 64 68 57 412 504 568 569 City Clerk: Contracts Processed 238 282 199 243 266 297 217 232 226 257 Documents Notarized 203 157 99 128 74 90 184 256 143 105 Documents Recorded with County 106 112 56 67 45 39 43 150 91 29 Subpoenas and Claims Processed 37 10 8 12 18 15 15 18 27 25 Records Requests Fulfilled and Recorded 580 518 743 572 602 633 847 1,205 1,201 1,061 Pages of Electronic Documents Archived(1)164,847 233,182 214,384 593,991 970,894 753,291 190,113 176,426 131,141 179,239 Public Works: Encroachment permits issued 127 54 123 121 140 121 138 196 163 150 Request for services (1)1261 3,440 3,207 2,652 2,194 1,938 2,041 1,732 2,983 3,308 Community Development: Number of Active Business Licenses (1)4,452 3,368 3,681 3,707 3,806 3,592 3,267 3,414 3,630 2,632 Permits: Single family Detached 176 108 92 142 122 218 157 467 407 91 Single family Attached 4 7.00 7.00 6 14 1 0 27 4 0 Residential Pool 255 217 170 211 243 237 337 424 369 314 Wall/Fence 328 257 209 268 223 312 244 412 504 334 Other 1,316 1,230 1,258 1,571 1,655 1,401 1,619 2,192 2,474 2,168 Garage Sale Permits (1)1,290 1,109 1,024 928 959 604 351 461 343 551 Total Permits 3,369 2,928 2,760 3,126 3,216 2,773 2,708 3,983 4,101 3,458 Code Compliance (1): Animal Control Incidents Handled (1)1,085 0 --52 42 30 10 19 16 Vehicle abatements 85 255 212 224 184 149 79 114 108 71 Weed abatements 45 57 114 128 80 65 53 74 44 59 Nuisance abatements/Property Maintenance 557 1,037 1,180 1,122 921 821 403 952 776 666 All Other (2)-1,432 806 888 1,159 1,591 1,511 1,320 1,071 1,192 Community Services: Library activities: Number of Visits 73,924 182,913 190,747 152,725 132,947 84,042 25,950 65,259 80,364 93,258 Books checked out 263,047 234,340 254,323 250,636 241,450 122,084 63,198 149,001 150,286 164,137 Cards Issued 2,418 2,179 2,248 2,276 2,251 919 886 1,610 1,827 2,060 Number of School Children Visiting 1,562 2,947 4,680 4,528 3,303 3,708 10,221 2,435 5,968 9,276 Volunteer Hours 1,917 2,169 2,248 2,314 2,138 1,173 0 524 853 1,233 Senior Center/Wellness Center (1) : Number of visits 23,871 62,820 74,141 87,294 82,477 41,934 4,725 20,065 30,007 44,680 Volunteer Hours 1,279 1,585 1,420 1,333 1,148 506 0 0 84 234 Recreation activities: Participants: Leisure Classes(5)1,322 2,241 2,278 2,168 2,039 864 269 15,538 35,786 31,265 Special events 6,460 8,185 7,783 10,449 12,650 4,950 390 4,685 9,929 7,210 Adult Sports 5,487 7,192 6,695 6,136 5,932 3,644 0 492 1,379 1,157 Golf course: Golf rounds played 41,904 45,104 43,085 42,590 44,949 33,407 39,073 44,329 44,438 42,664 Average Green fee 69.65$ 66.87$ 66.80$ 71.88$ 72.02$ 71.23$ 79.63$ 92.53$ 92.39$ 102.60$ Planning and Development: Number of residential units approved 208 40 120 0 114 92 212 132 429 316 Commercial square footage approved 79,092 13,000.00 391,914 7,599 102,552 3,162 152,133 15,537 32,071 73,655 Fiscal Year Notes:(1) Data on this table may vary from year to year due to restructuring, personnel, and systems changes that have taken place at the city over the past five years. Examples include animal licensing and control contracted to County of Riverside May 2015, business licenses and garage sale permits transferred to Community Development Department, tracking system for active business licenses updated, vacation rental requirements for permits changed, Codes Department began using GoEnforce tracking software, Public Works Department expanded use of GoRequest system, City Clerk's office completed project to archive all old documents and plans, and has now transitioned archiving documents electronically, and the Senior Center became the Wellness Center in 2015. (2)"All Other" category includes building codes, business license, commercial, hazardous conditions, health/safety, other, parking, vacation rentals, and zoning. For 2016, data was annualized using the seven months of actual "total closed incidents" provided by GoEnforce. (3) Declines in the reported numbers for the Library, Wellness Center, and any related recreational activities are due to facility closures and restrictions as a result of the novel Coronavirus pandemic. For 2021, 'School Children Visiting' the library includes virtual storytime attendance. (4)Previously reported only wires, has been updated to include all forms of electronic payment types. (5)Leisure Classes line includes X-park and Fritz Burns Pool activity participants starting in 2021-22. 162 239 CITY OF LA QUINTA, CALIFORNIA TABLE 24 Capital Asset Statistics by Function Last Ten Fiscal Years 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Public Works: 128 128 128 128 128 129 129 129 129 129 34 34 36 36 36 79 81.1 81.1 82.6 83.6 277 281 372 372 372 372 372 372 382 382 54 54 54 54 54 50 50 50 50 51 3,018 3,018 5,758 5,758 5,408 4,808 4,808 4,808 4,858 4,858 13 13 13 13 13 13 13 13 13 13 Parks and Recreation: Parks(3)13 13 13 13 13 14 14 17 17 18 218 218 218 218 218 - - - - - 40 40 40 40 40 - - - - - 238 238 235 235 235 114 114 111 111 111 17 17 17 17.4 17.4 17.4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Public Safety: Fire Stations 3 3 3 3 3 3 3 3 3 3 Golf Course: 1 1 1 1 1 1 1 1 1 1 Fiscal Year Bikepaths (miles) (1) Streets (miles) Senior/Wellness Center Museum Library Municipal golf courses Undeveloped Park Acreage Park Acreage Traffic signals Traffic signs Bridges Streetlights (2) Hiking Trails (miles) City-Owned Acres(3) City-Improved Acres(3) Notes: (1) Bike path miles were updated to include both Class I (off-street) and Class II (on-street, painted bike lanes) bicycle paths in 2015; the City has been adding Class II through various projects and the 2020 number has been updated accordingly. (2)In fiscal year ending 2009 street lights at intersections were included for the first time. Additionally, the decorative streetlights in Old Town were added for the first time in 2017. (3)In fiscal year 2019-20, the City added one public park, the SilverRock Event Site. In 2020, the City aligned reporting with the Developmental Impact Fee Study from August 2019 which identifies parks as 'City-Owned' and 'City-Improved' by acreage in Table 3.1. In 2021-22, the City added one public park, the X-park. Additionally, the park count now includes two sports fields owned by Desert Sands Unified School District but maintained by the City. These pa rks were already included in the "city- improved acres" line. In fiscal year 2023-24, the City added a small park in the Cactus Flower area. 163 240 CITY OF LA QUINTA, CALIFORNIA TABLE 25 Schedule of Insurance in Force June 30, 2024 Company Name Policy Number Coverage Limits Term Premium National Union Fire Insurance 01-309-02-02 Crime, Forgery, Fraud $1 Million 07/01/23 to 07/01/24 $1,800 Alliant Insurance Services, Inc California Self-Insured All Risk Property Insurance $25 Million 07/01/23 - 07/01/24 $187,527 Joint Powers Pool Including Auto Physical Damage, Single Limit per Occurrence Insurance Authority Terrorism, Boiler & Machinery subject to other sublimits Earthquake Real & Personal Property Including Contingent Tax Interruption California Self-Insured Comprehensive General $50 Million 07/01/23 - 07/01/24 $395,165 Joint Powers Pool and Automobile Liability Single Limit per Occurrence Insurance Authority California Self-Insured Workers' Compensation $10 Million 07/01/23 - 07/01/24 $269,483 Joint Powers Pool Per Occurrence Insurance Authority Source:City of La Quinta 164 241 242 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: June 4, 2025 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE THIRD QUARTER FISCAL YEAR 2024/25 TREASURY REPORTS FOR JANUARY, FEBRUARY AND MARCH 2025 RECOMMENDATION Receive and file the third quarter fiscal year 2024/25 Treasury Reports for January, February, and March 2025. BACKGROUND/ANALYSIS Commentary and Summary of Significant Activity The total book value of the portfolio increased approximately $20.7 million from $255.8 million at the end of December to $276.5 million at the end of March due to normal operations including receipt of property taxes, as well as reimbursement payments for the Dune Palms bridge project. The portfolio is within policy limits for investment types and total allocation by type and is also within policy guidelines for investment ratings. The chart below shows the portfolio policy compliance as measured in market value. The total market value of the portfolio increased $22.0 million from $253.8 million in December to $275.8 million in March. This variance differs from the book value increase due to market valuation fluctuations in response to interest rates; all treasury yields from 1-year out went down between December and March, which increases the value of holdings with higher coupon values. The City generally follows a buy-and-hold strategy BUSINESS SESSION ITEM NO. 3 243 for long-term investments, and maintains a cash reserve to cover operational needs, and therefore is not affected by market valuation fluctuations. Treasury Rates The annualized total rate of return averaged over twelve months was 3.83% as of March. For the quarter, the annualized total rate of return was 3.75% and the portfolio yield to maturity was 3.72%. Total interest received for the quarter was just over $2.3 million, while interest earned, including accrued and not yet received, was $2.47 million. City staff routinely evaluates liquidity needs while also monitoring market trends; we are closely watching the treasury market, which saw significant decreases in yields from June to September as the market anticipated Fed rate cuts, only for the rates to rise again by the end of December in anticipation of a new federal administration, and decrease again from December to March as the markets digested various tariff, regulatory, and economic news. We are continuing to utilize the California Asset Management Program (CAMP) which is yielding more than the Local Agency Investment Fund (LAIF), for short-term investing, but may shift money between the funds as appropriate. The City also continues to use a sweep function on both our operating account and our custody bank cash account, whereby funds are placed into highly-rated government funds (Invesco Treasury Portfolio – ticker TYCXX and First American Treasury Fund – ticker FUZXX) that earn interest until such time that money is reinvested or used for operations. We will continue to monitor these funds as well, and utilize longer-term investments as the short-term yield environment responds to the Fed’s actions in regard to the federal funds rate. Throughout the quarter, three federal agency bonds, 17 CDs, and one CAMP term matured, and three agency bonds were called. Seven federal agency bonds, five treasuries, and six CDs were purchased. Maturities and purchases are listed in detail in the attached reports. Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 10 yr 30 yr 12/31/2024 4.40 4.37 4.24 4.16 4.25 4.27 4.38 4.58 4.78 1/31/2025 4.37 4.31 4.28 4.17 4.22 4.27 4.36 4.58 4.83 2/28/2025 4.38 4.32 4.25 4.08 3.99 3.99 4.03 4.24 4.51 3/31/2025 4.38 4.32 4.23 4.03 3.89 3.89 3.96 4.23 4.59 Total Interest Received Average Days to Maturity Yield To Maturity Annualized Total Rate of Return January 566,704$ 586 3.75% 3.85% February 685,819$ 572 3.76% 3.49% March 1,064,767$ 575 3.66% 3.91% Quarter 3 2,317,290$ 578 3.72% 3.75% Quarter 2 2024/25 1,730,016$ 616 3.66% 3.76% Quarter 1 2024/25 1,998,617$ 572 3.82% 3.87% 244 The City utilized the new Tracker software for treasury reporting for the first time in quarter one of this fiscal year. The system now contains twelve months of data, and if available as a feature of a particular report, that history will be reflected. Other Notes Money market funds with the fiscal agent are bond proceeds subject to bond indentures, not the City’s investment policy. Successor Agency (SA) funds cannot be invested long- term; therefore SA funds are only invested in LAIF. Looking Ahead The Treasurer follows a “buy and hold” Investment Policy, unless it is fiscally advantageous to actively trade outside of maturity dates. In the short term, the Treasurer will invest in Money Market/Mutual Funds, CAMP, LAIF, and U.S. Treasuries as needed. Longer term investments may include Government Sponsored Enterprise (agencies) securities, U.S. Treasuries, Corporate Notes, and Negotiable Certificates of Deposits. All investments recognize both immediate and long-term cash flow needs, and there is sufficient liquidity in the portfolio to meet expenditure requirements for the next six months. ALTERNATIVES - None Prepared by: Rosemary Hallick, Principal Management Analyst Approved by: Claudia Martinez, Finance Director/City Treasurer Attachment: 1. Treasurer’s Report for January 1, 2025 to March 31, 2025 245 ATTACHMENT 1 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 US Treasury Rates https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2025 309 310 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: June 4, 2025 STAFF REPORT AGENDA TITLE: DISCUSS FISCAL YEAR 2025/26 PRELIMINARY PROPOSED BUDGET AND APPROVE ALLOCATION OF MEASURE G SALES TAX REVENUE RECOMMENDATION Discuss fiscal year 2025/26 preliminary proposed budget and approve allocation of Measure G Sales Tax revenue. EXECUTIVE SUMMARY The first study session focused on the General Fund and Internal Service Funds. This study session focuses on a review of Special Revenue Funds, Enterprise Fund, Capital Funds of the City, and updates to the General Fund. Final budget adoption is scheduled for the June 17, 2025 Council meeting. FISCAL IMPACT The updated General Fund budget anticipates a deficit of $45,380 with projected General Fund revenues of $89,842,254 (including Measure G sales tax) and proposed operational and capital expenditures of $90,386,634, including use of Measure G reserves in the amount of $600,000. BACKGROUND/ANALYSIS The goal of the June 4, 2025 session is to provide an overview of updates since May 7, 2025 for all funds and approve the use of Measure G sales tax revenues. The Fiscal Year 2025/26 Proposed Budget Overview (Attachment 1) provides a narrative for all Special Funds and an update to the General Fund. Exhibit A includes line-item details for revenues and expenditures for the Special Revenue Funds, Enterprise Fund, and Capital Improvement Funds. The budget updates will be presented to the City Council on June 3, 2025. Staff will provide a verbal update of those discussions to the Commission during this meeting. BUSINESS SESSION ITEM NO. 4 311 ALTERNATIVES The Commission may wish to request further information regarding specific items and provide direction regarding the next steps in the overall budget process, prior to budget adoption scheduled for June 17, 2025. Prepared by: Claudia Martinez, Finance Director Approved by: Jon McMillen, City Manager Attachment: 1. Fiscal Year 2025/26 Proposed Budget Overview 312 2025/26 Second Budget Study Session Page 1 FISCAL YEAR 2025/26 SECOND BUDGET STUDY SESSION OVERVIEW The second budget study session provides an overview of the Special Revenue funds, Capital Fund, and Enterprise Fund (SilverRock Golf Resort) of the City. Exhibit A to this report provides line-item details. The fiscal year 2025/26 budget continues to evolve, and all updates will be incorporated into the final adopted budget. The City remains committed to a proactive approach in maintaining infrastructure, addressing community needs, and strengthening La Quinta’s long-term fiscal health. A one-page summary, found on Exhibit A with the proposed budget, provides a quick reference of all proposed revenues and expenditures by fund. The Supplemental Information section of the Proposed Budget provides a description of each fund. GENERAL FUND UPDATE Since the last budget study session, the following adjustments resulted in a $101,000 expense increase to the General Fund as detailed below: -Transfers Out in Centralized Services is increasing by $100,000 to cover the anticipated deficit in SilverRock operations, driven by rising operational expenses and the continued impact of on-site construction -An increase of $1,000 is included to cover the required annual State Controller’s Report for the Finance Authority, which is funded by the General Fund After adjustments, the updated budget deficit is $45,380. Adjustments to the General Fund noted in this report have been incorporated in the respective fund budget requests. Additional budget adjustments, including recommendations from the May 20 meeting, such as assistance to businesses pursuing Autism certification, a potential General Fund contribution for spay/neuter clinics, and updated salary and benefit amounts will be presented at the June 17 meeting. SPECIAL REVENUE FUNDS Special Revenue Funds account for specific revenues and their related expenditures that are legally required to be held in separate funds. Revenues may be derived from various sources such as developer impact fees, property tax assessments, State and Federal programs, housing income, or operations. These restricted funds are for road repairs, recycling programs, art in public places, housing activities, police programs, library/museum operations, and the administration of retiree benefits Revenues 89,842,254$ Less Operating/CIP Expenses (90,386,634) Less Measure G Reserves 600,000 BUDGET SURPLUS 55,620$ Expense- GF Transfer to SRR 100,000$ Expense- GF Exp for Finance Authority 1,000$ Total Adjustments 101,000 AMENDED BUDGET DEFICIT (45,380)$ GENERAL FUND FY 2025/26 ORIGINAL PROPOSED BUDGET SUMMARY GENERAL FUND AS OF 6/3/2025 ATTACHMENT 1 313 2025/26 Second Budget Study Session Page 2 through trusts. A summary of revenues and expenditures by Special Fund is provided on the final page of this report. Gas Tax Fund Revenue projections are provided by the State and are expected to grow at a modest pace; it is estimated that total local streets and roads allocations will increase by nearly $50,000 in 2025/26. We anticipate stable year-over-year growth in the coming years. While fuel consumption may decrease with the rise of alternative fuel vehicles, annual cost-of-living adjustments are expected to offset this impact and help sustain revenue levels. The General fund is anticipated to transfer $500,000 into the Gas Tax Fund to supplement operations, this amount will be updated upon completion of salary and benefit projections. Expenditure increases are primarily due to salaries and benefits, reflecting annual step increases and rising health costs, along with higher internal service charges. Capital expenses are reduced, as one- time machinery and equipment purchases occurred in FY 2024/25 and ongoing road improvement projects will carry over from that fiscal year. Transfers out for CIP projects total $1,006,705 for the Cove Area Slurry Seal Improvements Phase 2 project. The Lighting and Landscape District (LLD) Fund is partially funded with $998,000 from property tax assessments. To ensure continued citywide landscaping standards are upheld, the General Fund is projected to contribute $2,750,000 in 2025/26. Expenditure increases are driven by landscape contract costs due to enhanced service levels and rising prices for materials, supplies, labor, and utilities. These increases are partially offset by a reduction in tree maintenance costs, as funding for the ongoing project in FY 2024/25 will carry over into FY 2025/26. Housing Authority Funds will be presented to the Housing Authority in detail on June 3, 2025. A preliminary review of the proposed budget will be presented to the Housing Commission on June 11, 2025 and is scheduled for adoption on June 17, 2025. Finance Authority Fund includes ongoing expenses that are limited to the filing of an annual State Controller’s Report anticipated to be about $1,000 in the upcoming year. The 1996 Civic Center Bond was paid off in October 2018 and is noted in the FY 2018/19 Annual Comprehensive Financial Report. Overall expenses are decreasing for the Library and Museum Fund compared to FY 2024/25 primarily due to CIP carryovers from FY 2023/24 to FY 2024/25 for the Village Art Promenade & Cultural Campus project of about $2.3 million. Increases are attributed to contract services, salaries and benefits, and operational expenses, driven by expanded services and rising costs. OTHER SPECIAL REVENUE FUNDS Measure A Fund provides the City with funding for street maintenance and operations, street repairs and improvements, and new infrastructure of the streets and roads systems. The Riverside County Transportation Commission (RCTC) allocates funds to local agencies to be used on specific capital projects pre-approved by RCTC. County sales tax revenue is expected to decrease by $222,000 or 314 2025/26 Second Budget Study Session Page 3 11% from the prior year based on estimates from RCTC’s Measure A Program Allocation projection report. Development Impact Fee (DIF) Funds are restricted to capital improvement program expenses. Funds with no expenses in 2025/26 either have no current project commitments or are saving revenues for future fiscal year capital projects. For 2025/26, the Art in Public Places Fund (APP) proposed budget includes the maintenance contract for all citywide art installations and the continuance of art purchases to include art at the SilverRock park, community murals, signal box art design and vinyl wraps, and entry monuments. ENTERPRISE FUND The SilverRock Golf Resort operates under two funds, an operating fund and a capital replacement reserve fund. Landmark Golf Management LLC (Landmark) manages the SilverRock Resort golf course and is required to provide an annual operations plan for Council’s review and approval, which is being presented to City Council on June 17, 2025. Readers are encouraged to read the full annual plan for details on revenues and expenditures. Highlights include impacts from ongoing construction and development affecting operations, turf renovation project, golf course management fee increase of five percent (5%), and continuing the 2% annual contribution to the capital reserve fund. It is anticipated that SilverRock operations and the budget will require continuous monitoring and adjustments during the 2025/26 fiscal year as ongoing construction will affect operations. CAPITAL IMPROVEMENT PROGRAM (CIP) The preliminary Capital Improvement Programs Fund includes revenues and expenditures for projects as presented to City Council on April 1, 2025. The total CIP budget for FY 2025/26 is $25,193,033. Developer reimbursements totaling $400,000 for DIF eligible improvements are budgeted in DIF funds and $500,000 for median landscape improvements is expended out of the LLD fund. 315 2025/26 Second Budget Study Session Page 4 FUND #FUND NAME TOTAL REVENUES TOTAL EXPENSES SURPLUS / (DEFICIT) 101 GENERAL FUND 89,842,254 90,487,634 (645,380) 105 DISASTER RECOVERY FUND 172,000 4,993,504 (4,821,504) 201 GAS TAX FUND 2,717,705 3,094,085 (376,380) 202 LIBRARY & MUSEUM FUND 4,420,000 3,143,420 1,276,580 203 PUBLIC SAFETY FUND 6,000 - 6,000 210 FEDERAL ASSISTANCE FUND (CDBG)160,100 160,000 100 212 SLESF (COPS)121,000 100,000 21,000 215 LIGHTING & LANDSCAPING FUND 3,808,000 3,808,000 - 220 QUIMBY FUND - - - 221 AB 939 - CALRECYCLE 91,000 205,000 (114,000) 223 MEASURE A FUND 1,900,000 1,124,132 775,868 225 INFRASTRUCTURE FUND 1,000 - 1,000 226 EMERGENCY MANAGEMENT PERFORMANCE FUND 10,000 10,000 - 227 STATE HOMELAND SECURITY PROGRAM 5,400 5,000 400 230 CASp FUND, AB 1379 24,000 5,500 18,500 235 SO COAST AIR QUALITY FUND 57,000 40,000 17,000 241 HOUSING AUTHORITY FUND 1,666,000 1,664,780 1,220 243 RDA LOW-MOD HOUSING FUND 130,000 325,000 (195,000) 247 ECONOMIC DEVELOPMENT FUND 109,000 31,500 77,500 249 SA 2011 LOW/MOD BOND 86,000 150,000 (64,000) 250 TRANSPORTATION DIF 579,000 979,109 (400,109) 251 PARKS & RECREATION DIF 203,000 - 203,000 252 CIVIC CENTER DIF 160,000 - 160,000 253* LIBRARY DEVELOPMENT DIF 30,500 15,000 15,500 254 COMMUNITY CENTER DIF 95,000 482,561 (387,561) 255 STREET FACILITY DIF 3,000 - 3,000 256 PARK FACILITY DIF 500 - 500 257 FIRE PROTECTION DIF 51,000 - 51,000 259 MAINTENANCE FACILITIES DIF FUND 47,000 362,526 (315,526) 270 ART IN PUBLIC PLACES FUND 181,000 233,000 (52,000) 275 LQ PUBLIC SAFETY OFFICER FUND 4,000 - 4,000 310 LQ FINANCE AUTHORITY FUND 1,000 1,000 - 401 CAPITAL IMPROVEMENT PROGRAMS 24,293,033 24,293,033 - 405 SA PA1 CAPITAL IMPROVEMENT BOND 500 - 500 501 FACILITY & FLEET REPLACEMENT FUND 1,726,300 1,745,500 (19,200) 502 INFORMATION TECHNOLOGY FUND 3,105,700 4,027,320 (921,620) 503 PARK EQUIP & FACILITY FUND 525,000 935,000 (410,000) 504 INSURANCE FUND 1,407,600 1,242,600 165,000 601 SILVERROCK RESORT FUND 5,470,000 5,517,000 (47,000) 602 SILVERROCK GOLF RESERVE FUND 113,000 - 113,000 760 SUPPLEMENTAL PENSION PLAN 7,000 12,850 (5,850) 761 CERBT OPEB TRUST (HEALTH BENEFITS)40,000 1,500 38,500 762 PARS PENSION TRUST 200,000 30,000 170,000 Non- General Fund Total 53,727,338 58,737,920 (5,010,582) 143,569,592 149,225,554 (5,655,962) SUMMARY OF REVENUES AND EXPENDITURES BY FUND FOR 2025/26 GRAND TOTAL * This fund has an outstanding inter-agency loan due to the Successor Agency. 316 Special Funds EXHIBIT A 317 THIS PAGE INTENTIONALLY LEFT BLANK 318 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 105 - DISASTER RECOVERY FUND 0000 - Undesignated 360 - Use of Money & Property 358,375 30,000 30,000 79,149 172,000 142,000 473%105-0000-41900 Allocated Interest 133,154 0 0 0 0 0 0%105-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:491,528 30,000 30,000 79,149 172,000 142,000 473% 0000 - Undesignated Totals:491,528 30,000 30,000 79,149 172,000 142,000 473% 105 - DISASTER RECOVERY FUND Totals:491,528 30,000 30,000 79,149 172,000 142,000 473% 201 - GAS TAX FUND 0000 - Undesignated 330 - Intergovernmental 230,398 240,000 240,000 164,089 248,000 8,000 3%201-0000-42900 Section 2105, Gas Tax 150,618 154,000 154,000 108,814 160,000 6,000 4%201-0000-42905 Section 2106, Gas Tax 311,864 327,000 327,000 213,125 338,000 11,000 3%201-0000-42910 Section 2107, Gas Tax 6,000 6,000 6,000 6,000 6,000 0 0%201-0000-42915 Section 2107.5, Gas Tax 345,481 358,000 358,000 263,436 359,000 1,000 0%201-0000-42920 Section 2103, Gas Tax 980,088 984,000 984,000 610,247 1,006,705 22,705 2%201-0000-42922 SB 1, Road Maint. Rehab Act 330 - Intergovernmental Totals:2,024,448 2,069,000 2,069,000 1,365,712 2,117,705 48,705 2% 360 - Use of Money & Property 110,180 20,000 20,000 18,717 100,000 80,000 400%201-0000-41900 Allocated Interest 27,654 0 0 0 0 0 0%201-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:137,834 20,000 20,000 18,717 100,000 80,000 400% 390 - Other Financing Sources 1,250,000 500,000 500,000 500,000 500,000 0 0%201-0000-49500 Transfers In 390 - Other Financing Sources Totals:1,250,000 500,000 500,000 500,000 500,000 0 0% 0000 - Undesignated Totals:3,412,282 2,589,000 2,589,000 1,884,429 2,717,705 128,705 5% 201 - GAS TAX FUND Totals:3,412,282 2,589,000 2,589,000 1,884,429 2,717,705 128,705 5% 202 - LIBRARY & MUSEUM FUND 0000 - Undesignated 330 - Intergovernmental 3,835,414 3,000,000 3,000,000 1,877,415 4,000,000 1,000,000 33%202-0000-41720 County Government Revenue 330 - Intergovernmental Totals:3,835,414 3,000,000 3,000,000 1,877,415 4,000,000 1,000,000 33% 340 - Charges for Services 3,634 3,000 3,000 4,731 5,000 2,000 67%202-0000-42218 MakerSpace Membership Fees 340 - Charges for Services Totals:3,634 3,000 3,000 4,731 5,000 2,000 67% 358,375 30,000 30,000 79,149 172,000 142,000 133,154 0 0 0 0 0 491,528 30,000 30,000 79,149 172,000 142,000 491,528 30,000 30,000 79,149 172,000 142,000 491,528 30,000 30,000 79,149 172,000 142,000 230,398 240,000 240,000 164,089 248,000 8,000 150,618 154,000 154,000 108,814 160,000 6,000 311,864 327,000 327,000 213,125 338,000 11,000 6,000 6,000 6,000 6,000 6,000 0 345,481 358,000 358,000 263,436 359,000 1,000 980,088 984,000 984,000 610,247 1,006,705 22,705 2,024,448 2,069,000 2,069,000 1,365,712 2,117,705 48,705 110,180 20,000 20,000 18,717 100,000 80,000 27,654 0 0 0 0 0 137,834 20,000 20,000 18,717 100,000 80,000 1,250,000 500,000 500,000 500,000 500,000 0 1,250,000 500,000 500,000 500,000 500,000 0 3,412,282 2,589,000 2,589,000 1,884,429 2,717,705 128,705 3,412,282 2,589,000 2,589,000 1,884,429 2,717,705 128,705 3,835,414 3,000,000 3,000,000 1,877,415 4,000,000 1,000,000 3,835,414 3,000,000 3,000,000 1,877,415 4,000,000 1,000,000 3,634 3,000 3,000 4,731 5,000 2,000 3,634 3,000 3,000 4,731 5,000 2,000 CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 1 319 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 360 - Use of Money & Property 411,126 140,000 140,000 103,385 415,000 275,000 196%202-0000-41900 Allocated Interest 118,359 0 0 0 0 0 0%202-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:529,485 140,000 140,000 103,385 415,000 275,000 196% 0000 - Undesignated Totals:4,368,533 3,143,000 3,143,000 1,985,530 4,420,000 1,277,000 41% 202 - LIBRARY & MUSEUM FUND Totals:4,368,533 3,143,000 3,143,000 1,985,530 4,420,000 1,277,000 41% 203 - PUBLIC SAFETY FUND (MEASURE G) 0000 - Undesignated 360 - Use of Money & Property 6,843 5,000 5,000 1,450 6,000 1,000 20%203-0000-41900 Allocated Interest 2,995 0 0 0 0 0 0%203-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:9,838 5,000 5,000 1,450 6,000 1,000 20% 0000 - Undesignated Totals:9,838 5,000 5,000 1,450 6,000 1,000 20% 203 - PUBLIC SAFETY FUND (MEASURE G) Totals:9,838 5,000 5,000 1,450 6,000 1,000 20% 210 - FEDERAL ASSISTANCE FUND 0000 - Undesignated 330 - Intergovernmental 371,978 190,000 190,000 0 160,000 (30,000)-16%210-0000-43105 CDBG 330 - Intergovernmental Totals:371,978 190,000 190,000 0 160,000 (30,000)-16% 360 - Use of Money & Property 78 0 0 17 100 100 0%210-0000-41900 Allocated Interest 29 0 0 0 0 0 0%210-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:107 0 0 17 100 100 0% 0000 - Undesignated Totals:372,085 190,000 190,000 17 160,100 (29,900)-16% 210 - FEDERAL ASSISTANCE FUND Totals:372,085 190,000 190,000 17 160,100 (29,900)-16% 212 - SLESA (COPS) FUND 0000 - Undesignated 330 - Intergovernmental 186,159 100,000 100,000 144,663 100,000 0 0%212-0000-43115 SLESA (COPS) Grant 330 - Intergovernmental Totals:186,159 100,000 100,000 144,663 100,000 0 0% 360 - Use of Money & Property 19,616 3,000 3,000 4,286 21,000 18,000 600%212-0000-41900 Allocated Interest 4,978 0 0 0 0 0 0%212-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:24,594 3,000 3,000 4,286 21,000 18,000 600% 0000 - Undesignated Totals:210,753 103,000 103,000 148,949 121,000 18,000 17% 212 - SLESA (COPS) FUND Totals:210,753 103,000 103,000 148,949 121,000 18,000 17% 411,126 140,000 140,000 103,385 415,000 275,000 118,359 0 0 0 0 0 529,485 140,000 140,000 103,385 415,000 275,000 4,368,533 3,143,000 3,143,000 1,985,530 4,420,000 1,277,000 4,368,533 3,143,000 3,143,000 1,985,530 4,420,000 1,277,000 6,843 5,000 5,000 1,450 6,000 1,000 2,995 0 0 0 0 0 9,838 5,000 5,000 1,450 6,000 1,000 9,838 5,000 5,000 1,450 6,000 1,000 9,838 5,000 5,000 1,450 6,000 1,000 371,978 190,000 190,000 0 160,000 (30,000) 371,978 190,000 190,000 0 160,000 (30,000) 78 0 0 17 100 100 29 0 0 0 0 0 107 0 0 17 100 100 372,085 190,000 190,000 17 160,100 (29,900) 372,085 190,000 190,000 17 160,100 (29,900) 186,159 100,000 100,000 144,663 100,000 0 186,159 100,000 100,000 144,663 100,000 0 19,616 3,000 3,000 4,286 21,000 18,000 4,978 0 0 0 0 0 24,594 3,000 3,000 4,286 21,000 18,000 210,753 103,000 103,000 148,949 121,000 18,000 210,753 103,000 103,000 148,949 121,000 18,000 CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 2 320 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 215 - LIGHTING & LANDSCAPING FUND 0000 - Undesignated 340 - Charges for Services 0 0 0 31,441 0 0 0%215-0000-42305 Miscellaneous Reimbursement 340 - Charges for Services Totals:0 0 0 31,441 0 0 0% 350 - Fines, Forfeitures & Abatements 988,238 997,000 997,000 543,080 998,000 1,000 0%215-0000-43210 LLD Assessments 350 - Fines, Forfeitures & Abatements Totals:988,238 997,000 997,000 543,080 998,000 1,000 0% 360 - Use of Money & Property 35,154 3,500 3,500 (596)60,000 56,500 1,614%215-0000-41900 Allocated Interest 8,971 0 0 0 0 0 0%215-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:44,125 3,500 3,500 (596) 60,000 56,500 1,614% 390 - Other Financing Sources 2,000,000 3,000,000 3,000,000 2,500,000 2,750,000 (250,000)-8%215-0000-49500 Transfers In 390 - Other Financing Sources Totals:2,000,000 3,000,000 3,000,000 2,500,000 2,750,000 (250,000)-8% 0000 - Undesignated Totals:3,032,363 4,000,500 4,000,500 3,073,925 3,808,000 (192,500)-5% 215 - LIGHTING & LANDSCAPING FUND Totals:3,032,363 4,000,500 4,000,500 3,073,925 3,808,000 (192,500)-5% 221 - AB 939 - CALRECYCLE FUND 0000 - Undesignated 310 - Tax Revenues 71,595 70,000 70,000 40,851 70,000 0 0%221-0000-41506 Burrtec AB 939 Fee 310 - Tax Revenues Totals:71,595 70,000 70,000 40,851 70,000 0 0% 330 - Intergovernmental 106,439 0 0 0 0 0 0%221-0000-43115 SB 1383 Cal Recycle Grant 9,851 0 0 0 0 0 0%221-0000-43120 Cal Recycle Grant 330 - Intergovernmental Totals:116,290 0 0 0 0 0 0% 360 - Use of Money & Property 23,845 10,000 10,000 5,128 21,000 11,000 110%221-0000-41900 Allocated Interest 10,867 0 0 0 0 0 0%221-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:34,712 10,000 10,000 5,128 21,000 11,000 110% 0000 - Undesignated Totals:222,597 80,000 80,000 45,980 91,000 11,000 14% 221 - AB 939 - CALRECYCLE FUND Totals:222,597 80,000 80,000 45,980 91,000 11,000 14% 223 - MEASURE A FUND 0000 - Undesignated 310 - Tax Revenues 1,959,770 1,995,000 1,995,000 1,103,101 1,773,000 (222,000)-11%223-0000-41320 County Sales Tax 310 - Tax Revenues Totals:1,959,770 1,995,000 1,995,000 1,103,101 1,773,000 (222,000)-11% 0 0 0 31,441 0 0 0 0 0 31,441 0 0 988,238 997,000 997,000 543,080 998,000 1,000 988,238 997,000 997,000 543,080 998,000 1,000 35,154 3,500 3,500 (596)60,000 56,500 8,971 0 0 0 0 0 44,125 3,500 3,500 (596) 60,000 56,500 2,000,000 3,000,000 3,000,000 2,500,000 2,750,000 (250,000) 2,000,000 3,000,000 3,000,000 2,500,000 2,750,000 (250,000) 3,032,363 4,000,500 4,000,500 3,073,925 3,808,000 (192,500) 3,032,363 4,000,500 4,000,500 3,073,925 3,808,000 (192,500) 71,595 70,000 70,000 40,851 70,000 0 71,595 70,000 70,000 40,851 70,000 0 106,439 0 0 0 0 0 9,851 0 0 0 0 0 116,290 0 0 0 0 0 23,845 10,000 10,000 5,128 21,000 11,000 10,867 0 0 0 0 0 34,712 10,000 10,000 5,128 21,000 11,000 222,597 80,000 80,000 45,980 91,000 11,000 222,597 80,000 80,000 45,980 91,000 11,000 1,959,770 1,995,000 1,995,000 1,103,101 1,773,000 (222,000) 1,959,770 1,995,000 1,995,000 1,103,101 1,773,000 (222,000) CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 3 321 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 360 - Use of Money & Property 94,329 30,000 30,000 26,671 127,000 97,000 323%223-0000-41900 Allocated Interest 61,185 0 0 0 0 0 0%223-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:155,514 30,000 30,000 26,671 127,000 97,000 323% 0000 - Undesignated Totals:2,115,284 2,025,000 2,025,000 1,129,772 1,900,000 (125,000)-6% 223 - MEASURE A FUND Totals:2,115,284 2,025,000 2,025,000 1,129,772 1,900,000 (125,000)-6% 225 - INFRASTRUCTURE FUND 0000 - Undesignated 360 - Use of Money & Property 694 1,000 1,000 153 1,000 0 0%225-0000-41900 Allocated Interest 258 0 0 0 0 0 0%225-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:952 1,000 1,000 153 1,000 0 0% 0000 - Undesignated Totals:952 1,000 1,000 153 1,000 0 0% 225 - INFRASTRUCTURE FUND Totals:952 1,000 1,000 153 1,000 0 0% 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG) 0000 - Undesignated 330 - Intergovernmental 36,425 12,000 12,000 0 10,000 (2,000)-17%226-0000-43120 EMP Grant 330 - Intergovernmental Totals:36,425 12,000 12,000 0 10,000 (2,000)-17% 360 - Use of Money & Property 0 1,000 1,000 0 0 (1,000)-100%226-0000-41900 Allocated Interest 360 - Use of Money & Property Totals:0 1,000 1,000 0 0 (1,000)-100% 0000 - Undesignated Totals:36,425 13,000 13,000 0 10,000 (3,000)-23% 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG) Totals:36,425 13,000 13,000 0 10,000 (3,000)-23% 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP) 0000 - Undesignated 330 - Intergovernmental 4,312 5,500 5,500 0 5,400 (100)-2%227-0000-43120 SHSP Grant 330 - Intergovernmental Totals:4,312 5,500 5,500 0 5,400 (100)-2% 0000 - Undesignated Totals:4,312 5,500 5,500 0 5,400 (100)-2% 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP) Totals:4,312 5,500 5,500 0 5,400 (100)-2% 94,329 30,000 30,000 26,671 127,000 97,000 61,185 0 0 0 0 0 155,514 30,000 30,000 26,671 127,000 97,000 2,115,284 2,025,000 2,025,000 1,129,772 1,900,000 (125,000) 2,115,284 2,025,000 2,025,000 1,129,772 1,900,000 (125,000) 694 1,000 1,000 153 1,000 0 258 0 0 0 0 0 952 1,000 1,000 153 1,000 0 952 1,000 1,000 153 1,000 0 952 1,000 1,000 153 1,000 0 36,425 12,000 12,000 0 10,000 (2,000) 36,425 12,000 12,000 0 10,000 (2,000) 0 1,000 1,000 0 0 (1,000) 0 1,000 1,000 0 0 (1,000) 36,425 13,000 13,000 0 10,000 (3,000) 36,425 13,000 13,000 0 10,000 (3,000) 4,312 5,500 5,500 0 5,400 (100) 4,312 5,500 5,500 0 5,400 (100) 4,312 5,500 5,500 0 5,400 (100) 4,312 5,500 5,500 0 5,400 (100) CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 4 322 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 230 - CASp FUND, AB 1379 0000 - Undesignated 360 - Use of Money & Property 3,446 1,000 1,000 816 4,000 3,000 300%230-0000-41900 Allocated Interest 976 0 0 0 0 0 0%230-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:4,422 1,000 1,000 816 4,000 3,000 300% 380 - Transfers In 15,732 20,000 20,000 14,612 20,000 0 0%230-0000-42130 SB 1186 Revenue 380 - Transfers In Totals:15,732 20,000 20,000 14,612 20,000 0 0% 0000 - Undesignated Totals:20,154 21,000 21,000 15,428 24,000 3,000 14% 230 - CASp FUND, AB 1379 Totals:20,154 21,000 21,000 15,428 24,000 3,000 14% 235 - SO COAST AIR QUALITY FUND 0000 - Undesignated 330 - Intergovernmental 51,086 52,500 52,500 25,197 52,500 0 0%235-0000-43410 SCAQ Contribution 330 - Intergovernmental Totals:51,086 52,500 52,500 25,197 52,500 0 0% 360 - Use of Money & Property 3,625 2,000 2,000 1,015 4,500 2,500 125%235-0000-41900 Allocated Interest 522 0 0 0 0 0 0%235-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:4,147 2,000 2,000 1,015 4,500 2,500 125% 390 - Other Financing Sources 23,049 0 0 0 0 0 0%235-0000-49500 Transfers In 390 - Other Financing Sources Totals:23,049 0 0 0 0 0 0% 0000 - Undesignated Totals:78,283 54,500 54,500 26,211 57,000 2,500 5% 235 - SO COAST AIR QUALITY FUND Totals:78,283 54,500 54,500 26,211 57,000 2,500 5% 241 - HOUSING AUTHORITY 9101 - Housing Authority - Admin 340 - Charges for Services 526 0 0 0 0 0 0%241-9101-42301 Miscellaneous Revenue 340 - Charges for Services Totals:526 0 0 0 0 0 0% 360 - Use of Money & Property 416,365 200,000 200,000 90,244 365,000 165,000 83%241-9101-41900 Allocated Interest 165,958 0 0 0 0 0 0%241-9101-41910 GASB 31 Interest 0 1,000 1,000 0 0 (1,000)-100%241-9101-41915 Non-Allocated Interest 80,124 0 0 0 0 0 0%241-9101-42706 Loan Repayments 148,869 100,000 100,000 11,300 100,000 0 0%241-9101-43504 2nd Trust Deed Repayments 118,416 0 0 0 0 0 0%241-9101-45000 Sale of Other Assets 360 - Use of Money & Property Totals:929,732 301,000 301,000 101,544 465,000 164,000 54% 3,446 1,000 1,000 816 4,000 3,000 976 0 0 0 0 0 4,422 1,000 1,000 816 4,000 3,000 15,732 20,000 20,000 14,612 20,000 0 15,732 20,000 20,000 14,612 20,000 0 20,154 21,000 21,000 15,428 24,000 3,000 20,154 21,000 21,000 15,428 24,000 3,000 51,086 52,500 52,500 25,197 52,500 0 51,086 52,500 52,500 25,197 52,500 0 3,625 2,000 2,000 1,015 4,500 2,500 522 0 0 0 0 0 4,147 2,000 2,000 1,015 4,500 2,500 23,049 0 0 0 0 0 23,049 0 0 0 0 0 78,283 54,500 54,500 26,211 57,000 2,500 78,283 54,500 54,500 26,211 57,000 2,500 526 0 0 0 0 0 526 0 0 0 0 0 416,365 200,000 200,000 90,244 365,000 165,000 165,958 0 0 0 0 0 0 1,000 1,000 0 0 (1,000) 80,124 0 0 0 0 0 148,869 100,000 100,000 11,300 100,000 0 118,416 0 0 0 0 0 929,732 301,000 301,000 101,544 465,000 164,000 CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 5 323 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 9101 - Housing Authority - Admin Totals:930,258 301,000 301,000 101,544 465,000 164,000 54% 9103 - Housing Authority - LQRP 360 - Use of Money & Property 200,000 0 0 0 0 0 0%241-9103-43501 Miscellaneous Revenue/LQRP 351,454 350,000 350,000 247,958 350,000 0 0%241-9103-43502 Rent Revenue/LQRP 360 - Use of Money & Property Totals:551,454 350,000 350,000 247,958 350,000 0 0% 9103 - Housing Authority - LQRP Totals:551,454 350,000 350,000 247,958 350,000 0 0% 9104 - Dune Palms Mobile Estates 360 - Use of Money & Property 791,622 800,000 800,000 662,797 850,000 50,000 6%241-9104-42112 Rent Revenue/Tenant/Dune Palms 0 1,000 1,000 0 1,000 0 0%241-9104-42302 Miscellaneous Revenue/Dune Palms 360 - Use of Money & Property Totals:791,622 801,000 801,000 662,797 851,000 50,000 6% 9104 - Dune Palms Mobile Estates Totals:791,622 801,000 801,000 662,797 851,000 50,000 6% 241 - HOUSING AUTHORITY Totals:2,273,334 1,452,000 1,452,000 1,012,299 1,666,000 214,000 15% 243 - RDA LOW-MOD HOUSING FUND 0000 - Undesignated 360 - Use of Money & Property 143,666 60,000 60,000 31,085 130,000 70,000 117%243-0000-41900 Allocated Interest 45,354 0 0 0 0 0 0%243-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:189,020 60,000 60,000 31,085 130,000 70,000 117% 370 - Miscellaneous 68,161 0 0 0 0 0 0%243-0000-48500 Extraordinary Gain 370 - Miscellaneous Totals:68,161 0 0 0 0 0 0% 0000 - Undesignated Totals:257,181 60,000 60,000 31,085 130,000 70,000 117% 243 - RDA LOW-MOD HOUSING FUND Totals:257,181 60,000 60,000 31,085 130,000 70,000 117% 247 - ECONOMIC DEVELOPMENT FUND 0000 - Undesignated 350 - Fines, Forfeitures & Abatements 61,413 0 0 7,410 0 0 0%247-0000-42706 Loan Repayments 350 - Fines, Forfeitures & Abatements Totals:61,413 0 0 7,410 0 0 0% 360 - Use of Money & Property 119,808 40,000 40,000 26,524 109,000 69,000 173%247-0000-41900 Allocated Interest 43,578 0 0 0 0 0 0%247-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:163,386 40,000 40,000 26,524 109,000 69,000 173% 0000 - Undesignated Totals:224,800 40,000 40,000 33,935 109,000 69,000 173% 247 - ECONOMIC DEVELOPMENT FUND Totals:224,800 40,000 40,000 33,935 109,000 69,000 173% 930,258 301,000 301,000 101,544 465,000 164,000 200,000 0 0 0 0 0 351,454 350,000 350,000 247,958 350,000 0 551,454 350,000 350,000 247,958 350,000 0 551,454 350,000 350,000 247,958 350,000 0 791,622 800,000 800,000 662,797 850,000 50,000 0 1,000 1,000 0 1,000 0 791,622 801,000 801,000 662,797 851,000 50,000 791,622 801,000 801,000 662,797 851,000 50,000 2,273,334 1,452,000 1,452,000 1,012,299 1,666,000 214,000 143,666 60,000 60,000 31,085 130,000 70,000 45,354 0 0 0 0 0 189,020 60,000 60,000 31,085 130,000 70,000 68,161 0 0 0 0 0 68,161 0 0 0 0 0 257,181 60,000 60,000 31,085 130,000 70,000 257,181 60,000 60,000 31,085 130,000 70,000 61,413 0 0 7,410 0 0 61,413 0 0 7,410 0 0 119,808 40,000 40,000 26,524 109,000 69,000 43,578 0 0 0 0 0 163,386 40,000 40,000 26,524 109,000 69,000 224,800 40,000 40,000 33,935 109,000 69,000 224,800 40,000 40,000 33,935 109,000 69,000 CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 6 324 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) 0000 - Undesignated 340 - Charges for Services 0 0 0 4,483 0 0 0%249-0000-42301 Miscellaneous Revenue 340 - Charges for Services Totals:0 0 0 4,483 0 0 0% 360 - Use of Money & Property 4,616 3,000 3,000 0 0 (3,000)-100%249-0000-41900 Allocated Interest 23,261 0 0 0 0 0 0%249-0000-41910 GASB 31 Interest 86,083 15,000 15,000 75,125 86,000 71,000 473%249-0000-41915 Non-Allocated Interest 360 - Use of Money & Property Totals:113,960 18,000 18,000 75,125 86,000 68,000 378% 390 - Other Financing Sources 1,387,009 0 0 0 0 0 0%249-0000-49500 Transfers In 390 - Other Financing Sources Totals:1,387,009 0 0 0 0 0 0% 0000 - Undesignated Totals:1,500,969 18,000 18,000 79,607 86,000 68,000 378% 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) Totals:1,500,969 18,000 18,000 79,607 86,000 68,000 378% 250 - TRANSPORTATION DIF FUND 0000 - Undesignated 360 - Use of Money & Property 193,646 40,000 40,000 41,891 179,000 139,000 348%250-0000-41900 Allocated Interest 72,934 0 0 0 0 0 0%250-0000-41910 GASB 31 Interest 495,552 500,000 500,000 393,072 400,000 (100,000)-20%250-0000-43200 Developer Fees 360 - Use of Money & Property Totals:762,133 540,000 540,000 434,963 579,000 39,000 7% 0000 - Undesignated Totals:762,133 540,000 540,000 434,963 579,000 39,000 7% 250 - TRANSPORTATION DIF FUND Totals:762,133 540,000 540,000 434,963 579,000 39,000 7% 251 - PARKS & REC DIF FUND 0000 - Undesignated 360 - Use of Money & Property 59,760 3,000 3,000 12,396 53,000 50,000 1,667%251-0000-41900 Allocated Interest 21,801 0 0 0 0 0 0%251-0000-41910 GASB 31 Interest 257,597 250,000 250,000 105,300 150,000 (100,000)-40%251-0000-43200 Developer Fees 360 - Use of Money & Property Totals:339,158 253,000 253,000 117,696 203,000 (50,000)-20% 0000 - Undesignated Totals:339,158 253,000 253,000 117,696 203,000 (50,000)-20% 251 - PARKS & REC DIF FUND Totals:339,158 253,000 253,000 117,696 203,000 (50,000)-20% 0 0 0 4,483 0 0 0 0 0 4,483 0 0 4,616 3,000 3,000 0 0 (3,000) 23,261 0 0 0 0 0 86,083 15,000 15,000 75,125 86,000 71,000 113,960 18,000 18,000 75,125 86,000 68,000 1,387,009 0 0 0 0 0 1,387,009 0 0 0 0 0 1,500,969 18,000 18,000 79,607 86,000 68,000 1,500,969 18,000 18,000 79,607 86,000 68,000 193,646 40,000 40,000 41,891 179,000 139,000 72,934 0 0 0 0 0 495,552 500,000 500,000 393,072 400,000 (100,000) 762,133 540,000 540,000 434,963 579,000 39,000 762,133 540,000 540,000 434,963 579,000 39,000 762,133 540,000 540,000 434,963 579,000 39,000 59,760 3,000 3,000 12,396 53,000 50,000 21,801 0 0 0 0 0 257,597 250,000 250,000 105,300 150,000 (100,000) 339,158 253,000 253,000 117,696 203,000 (50,000) 339,158 253,000 253,000 117,696 203,000 (50,000) 339,158 253,000 253,000 117,696 203,000 (50,000) CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 7 325 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 252 - CIVIC CENTER DIF FUND 0000 - Undesignated 360 - Use of Money & Property 62,382 3,000 3,000 14,333 60,000 57,000 1,900%252-0000-41900 Allocated Interest 20,833 0 0 0 0 0 0%252-0000-41910 GASB 31 Interest 114,700 100,000 100,000 74,114 100,000 0 0%252-0000-43200 Developer Fees 360 - Use of Money & Property Totals:197,916 103,000 103,000 88,447 160,000 57,000 55% 0000 - Undesignated Totals:197,916 103,000 103,000 88,447 160,000 57,000 55% 252 - CIVIC CENTER DIF FUND Totals:197,916 103,000 103,000 88,447 160,000 57,000 55% 253 - LIBRARY DEVELOPMENT DIF 0000 - Undesignated 360 - Use of Money & Property 0 0 0 0 500 500 0%253-0000-41900 Allocated Interest 32,495 50,000 50,000 19,850 30,000 (20,000)-40%253-0000-43200 Developer Fees 360 - Use of Money & Property Totals:32,495 50,000 50,000 19,850 30,500 (19,500)-39% 0000 - Undesignated Totals:32,495 50,000 50,000 19,850 30,500 (19,500)-39% 253 - LIBRARY DEVELOPMENT DIF Totals:32,495 50,000 50,000 19,850 30,500 (19,500)-39% 254 - COMMUNITY & CULTURAL CENTERS DIF 0000 - Undesignated 360 - Use of Money & Property 36,888 5,000 5,000 8,524 35,000 30,000 600%254-0000-41900 Allocated Interest 12,103 0 0 0 0 0 0%254-0000-41910 GASB 31 Interest 78,250 100,000 100,000 47,800 60,000 (40,000)-40%254-0000-43200 Developer Fees 360 - Use of Money & Property Totals:127,241 105,000 105,000 56,324 95,000 (10,000)-10% 0000 - Undesignated Totals:127,241 105,000 105,000 56,324 95,000 (10,000)-10% 254 - COMMUNITY & CULTURAL CENTERS DIF Totals:127,241 105,000 105,000 56,324 95,000 (10,000)-10% 255 - STREET FACILITY DIF FUND 0000 - Undesignated 360 - Use of Money & Property 2,895 1,000 1,000 639 3,000 2,000 200%255-0000-41900 Allocated Interest 1,075 0 0 0 0 0 0%255-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:3,970 1,000 1,000 639 3,000 2,000 200% 0000 - Undesignated Totals:3,970 1,000 1,000 639 3,000 2,000 200% 255 - STREET FACILITY DIF FUND Totals:3,970 1,000 1,000 639 3,000 2,000 200% 62,382 3,000 3,000 14,333 60,000 57,000 20,833 0 0 0 0 0 114,700 100,000 100,000 74,114 100,000 0 197,916 103,000 103,000 88,447 160,000 57,000 197,916 103,000 103,000 88,447 160,000 57,000 197,916 103,000 103,000 88,447 160,000 57,000 0 0 0 0 500 500 32,495 50,000 50,000 19,850 30,000 (20,000) 32,495 50,000 50,000 19,850 30,500 (19,500) 32,495 50,000 50,000 19,850 30,500 (19,500) 32,495 50,000 50,000 19,850 30,500 (19,500) 36,888 5,000 5,000 8,524 35,000 30,000 12,103 0 0 0 0 0 78,250 100,000 100,000 47,800 60,000 (40,000) 127,241 105,000 105,000 56,324 95,000 (10,000) 127,241 105,000 105,000 56,324 95,000 (10,000) 127,241 105,000 105,000 56,324 95,000 (10,000) 2,895 1,000 1,000 639 3,000 2,000 1,075 0 0 0 0 0 3,970 1,000 1,000 639 3,000 2,000 3,970 1,000 1,000 639 3,000 2,000 3,970 1,000 1,000 639 3,000 2,000 CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 8 326 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 256 - PARK FACILITY DIF FUND 0000 - Undesignated 360 - Use of Money & Property 273 100 100 60 500 400 400%256-0000-41900 Allocated Interest 101 0 0 0 0 0 0%256-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:374 100 100 60 500 400 400% 0000 - Undesignated Totals:374 100 100 60 500 400 400% 256 - PARK FACILITY DIF FUND Totals:374 100 100 60 500 400 400% 257 - FIRE PROTECTION DIF 0000 - Undesignated 360 - Use of Money & Property 21,453 3,000 3,000 4,904 21,000 18,000 600%257-0000-41900 Allocated Interest 7,270 0 0 0 0 0 0%257-0000-41910 GASB 31 Interest 34,257 50,000 50,000 22,099 30,000 (20,000)-40%257-0000-43200 Developer Fees 360 - Use of Money & Property Totals:62,980 53,000 53,000 27,003 51,000 (2,000)-4% 0000 - Undesignated Totals:62,980 53,000 53,000 27,003 51,000 (2,000)-4% 257 - FIRE PROTECTION DIF Totals:62,980 53,000 53,000 27,003 51,000 (2,000)-4% 259 - MAINTENANCE FACILITIES DIF FUND 0000 - Undesignated 360 - Use of Money & Property 11,908 2,000 2,000 2,810 12,000 10,000 500%259-0000-41900 Allocated Interest 3,712 0 0 0 0 0 0%259-0000-41910 GASB 31 Interest 35,224 45,000 45,000 26,705 35,000 (10,000)-22%259-0000-43200 Developer Fees 360 - Use of Money & Property Totals:50,843 47,000 47,000 29,514 47,000 0 0% 0000 - Undesignated Totals:50,843 47,000 47,000 29,514 47,000 0 0% 259 - MAINTENANCE FACILITIES DIF FUND Totals:50,843 47,000 47,000 29,514 47,000 0 0% 270 - ART IN PUBLIC PLACES FUND 0000 - Undesignated 360 - Use of Money & Property 32,504 8,000 8,000 7,297 31,000 23,000 288%270-0000-41900 Allocated Interest 10,868 0 0 0 0 0 0%270-0000-41910 GASB 31 Interest 131,312 100,000 100,000 73,953 100,000 0 0%270-0000-43201 APP Fees 360 - Use of Money & Property Totals:174,684 108,000 108,000 81,250 131,000 23,000 21% 390 - Other Financing Sources 50,000 50,000 50,000 50,000 50,000 0 0%270-0000-49500 Transfers In 390 - Other Financing Sources Totals:50,000 50,000 50,000 50,000 50,000 0 0% 0000 - Undesignated Totals:224,684 158,000 158,000 131,250 181,000 23,000 15% 273 100 100 60 500 400 101 0 0 0 0 0 374 100 100 60 500 400 374 100 100 60 500 400 374 100 100 60 500 400 21,453 3,000 3,000 4,904 21,000 18,000 7,270 0 0 0 0 0 34,257 50,000 50,000 22,099 30,000 (20,000) 62,980 53,000 53,000 27,003 51,000 (2,000) 62,980 53,000 53,000 27,003 51,000 (2,000) 62,980 53,000 53,000 27,003 51,000 (2,000) 11,908 2,000 2,000 2,810 12,000 10,000 3,712 0 0 0 0 0 35,224 45,000 45,000 26,705 35,000 (10,000) 50,843 47,000 47,000 29,514 47,000 0 50,843 47,000 47,000 29,514 47,000 0 50,843 47,000 47,000 29,514 47,000 0 32,504 8,000 8,000 7,297 31,000 23,000 10,868 0 0 0 0 0 131,312 100,000 100,000 73,953 100,000 0 174,684 108,000 108,000 81,250 131,000 23,000 50,000 50,000 50,000 50,000 50,000 0 50,000 50,000 50,000 50,000 50,000 0 224,684 158,000 158,000 131,250 181,000 23,000 CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 9 327 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 270 - ART IN PUBLIC PLACES FUND Totals:224,684 158,000 158,000 131,250 181,000 23,000 15% 275 - LQ PUBLIC SAFETY OFFICER 0000 - Undesignated 360 - Use of Money & Property 1,975 1,000 1,000 439 2,000 1,000 100%275-0000-41900 Allocated Interest 685 0 0 0 0 0 0%275-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:2,660 1,000 1,000 439 2,000 1,000 100% 390 - Other Financing Sources 2,000 2,000 2,000 2,000 2,000 0 0%275-0000-49500 Transfers In 390 - Other Financing Sources Totals:2,000 2,000 2,000 2,000 2,000 0 0% 0000 - Undesignated Totals:4,660 3,000 3,000 2,439 4,000 1,000 33% 275 - LQ PUBLIC SAFETY OFFICER Totals:4,660 3,000 3,000 2,439 4,000 1,000 33% 310 - LQ FINANCE AUTHORITY DEBT SERVICE 0000 - Undesignated 360 - Use of Money & Property 0 0 0 (1)0 0 0%310-0000-41900 Allocated Interest 907 1,500 1,500 0 1,000 (500)-33%310-0000-42111 Rental Income 360 - Use of Money & Property Totals:907 1,500 1,500 (1)1,000 (500)-33% 0000 - Undesignated Totals:907 1,500 1,500 (1)1,000 (500)-33% 310 - LQ FINANCE AUTHORITY DEBT SERVICE Totals:907 1,500 1,500 (1)1,000 (500)-33% 401 - CAPITAL IMPROVEMENT PROGRAMS 0000 - Undesignated 330 - Intergovernmental 9,580,532 0 19,210,554 5,542,732 0 (19,210,554)-100%401-0000-41716 Highway Bridge Program (Federal) 0 4,000,000 4,000,000 0 0 (4,000,000)-100%401-0000-41719 Federal Earmark Funding 4,161,114 0 3,557,469 0 0 (3,557,469)-100%401-0000-41721 CVAG 336,908 0 156,209 140,046 0 (156,209)-100%401-0000-43634 CV Water District 100,044 0 0 0 0 0 0%401-0000-43650 Contributions from Other Agencies 330 - Intergovernmental Totals:14,178,598 4,000,000 26,924,232 5,682,779 0 (26,924,232) -100% 360 - Use of Money & Property 0 0 905,877 0 0 (905,877)-100%401-0000-43133 Developer Agreement Funding 360 - Use of Money & Property Totals:0 0 905,877 0 0 (905,877)-100% 390 - Other Financing Sources 14,366,066 23,218,109 54,872,934 1,186,365 24,293,033 (30,579,901)-56%401-0000-49500 Transfers In 390 - Other Financing Sources Totals:14,366,066 23,218,109 54,872,934 1,186,365 24,293,033 (30,579,901) -56% 0000 - Undesignated Totals:28,544,664 27,218,109 82,703,042 6,869,144 24,293,033 (58,410,009) -71% 401 - CAPITAL IMPROVEMENT PROGRAMS Totals:28,544,664 27,218,109 82,703,042 6,869,144 24,293,033 (58,410,009) -71% 224,684 158,000 158,000 131,250 181,000 23,000 1,975 1,000 1,000 439 2,000 1,000 685 0 0 0 0 0 2,660 1,000 1,000 439 2,000 1,000 2,000 2,000 2,000 2,000 2,000 0 2,000 2,000 2,000 2,000 2,000 0 4,660 3,000 3,000 2,439 4,000 1,000 4,660 3,000 3,000 2,439 4,000 1,000 0 0 0 (1)0 0 907 1,500 1,500 0 1,000 (500) 907 1,500 1,500 (1)1,000 (500) 907 1,500 1,500 (1)1,000 (500) 907 1,500 1,500 (1)1,000 (500) 9,580,532 0 19,210,554 5,542,732 0 (19,210,554) 0 4,000,000 4,000,000 0 0 (4,000,000) 4,161,114 0 3,557,469 0 0 (3,557,469) 336,908 0 156,209 140,046 0 (156,209) 100,044 0 0 0 0 0 14,178,598 4,000,000 26,924,232 5,682,779 0 (26,924,232) 0 0 905,877 0 0 (905,877) 0 0 905,877 0 0 (905,877) 14,366,066 23,218,109 54,872,934 1,186,365 24,293,033 (30,579,901) 14,366,066 23,218,109 54,872,934 1,186,365 24,293,033 (30,579,901) 28,544,664 27,218,109 82,703,042 6,869,144 24,293,033 (58,410,009) 28,544,664 27,218,109 82,703,042 6,869,144 24,293,033 (58,410,009) CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 10 328 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 405 - SA PA 1 CAPITAL IMPRV FUND 0000 - Undesignated 360 - Use of Money & Property 218 500 500 48 500 0 0%405-0000-41900 Allocated Interest 81 0 0 0 0 0 0%405-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:299 500 500 48 500 0 0% 0000 - Undesignated Totals:299 500 500 48 500 0 0% 405 - SA PA 1 CAPITAL IMPRV FUND Totals:299 500 500 48 500 0 0% 501 - FACILITY & FLEET REPLACEMENT 0000 - Undesignated 360 - Use of Money & Property 176,439 40,000 40,000 41,041 155,000 115,000 288%501-0000-41900 Allocated Interest 44,111 0 0 0 0 0 0%501-0000-41910 GASB 31 Interest 4,272 0 0 0 0 0 0%501-0000-42000 Insurance Recoveries 360 - Use of Money & Property Totals:224,821 40,000 40,000 41,041 155,000 115,000 288% 390 - Other Financing Sources 65,485 0 0 0 0 0 0%501-0000-42207 Capital Contributions 1,495,000 1,664,000 1,664,000 1,121,250 1,570,300 (93,700)-6%501-0000-43636 FMP Equipment Charges (16,504)1,000 1,000 0 1,000 0 0%501-0000-45000 Gain/Loss on Asset Disposal 390 - Other Financing Sources Totals:1,543,981 1,665,000 1,665,000 1,121,250 1,571,300 (93,700)-6% 0000 - Undesignated Totals:1,768,802 1,705,000 1,705,000 1,162,291 1,726,300 21,300 1% 501 - FACILITY & FLEET REPLACEMENT Totals:1,768,802 1,705,000 1,705,000 1,162,291 1,726,300 21,300 1% 502 - INFORMATION TECHNOLOGY 0000 - Undesignated 340 - Charges for Services 35,333 30,000 30,000 88,475 30,000 0 0%502-0000-43611 Technology Enhancement Surcharge 340 - Charges for Services Totals:35,333 30,000 30,000 88,475 30,000 0 0% 360 - Use of Money & Property 129,105 20,000 20,000 27,266 12,500 (7,500)-38%502-0000-41900 Allocated Interest 29,572 0 0 0 0 0 0%502-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:158,677 20,000 20,000 27,266 12,500 (7,500)-38% 390 - Other Financing Sources 3,051,000 2,226,708 2,226,708 2,288,250 3,063,200 836,492 38%502-0000-43610 Technology Support Charges 390 - Other Financing Sources Totals:3,051,000 2,226,708 2,226,708 2,288,250 3,063,200 836,492 38% 0000 - Undesignated Totals:3,245,010 2,276,708 2,276,708 2,403,990 3,105,700 828,992 36% 502 - INFORMATION TECHNOLOGY Totals:3,245,010 2,276,708 2,276,708 2,403,990 3,105,700 828,992 36% 218 500 500 48 500 0 81 0 0 0 0 0 299 500 500 48 500 0 299 500 500 48 500 0 299 500 500 48 500 0 176,439 40,000 40,000 41,041 155,000 115,000 44,111 0 0 0 0 0 4,272 0 0 0 0 0 224,821 40,000 40,000 41,041 155,000 115,000 65,485 0 0 0 0 0 1,495,000 1,664,000 1,664,000 1,121,250 1,570,300 (93,700) (16,504)1,000 1,000 0 1,000 0 1,543,981 1,665,000 1,665,000 1,121,250 1,571,300 (93,700) 1,768,802 1,705,000 1,705,000 1,162,291 1,726,300 21,300 1,768,802 1,705,000 1,705,000 1,162,291 1,726,300 21,300 35,333 30,000 30,000 88,475 30,000 0 35,333 30,000 30,000 88,475 30,000 0 129,105 20,000 20,000 27,266 12,500 (7,500) 29,572 0 0 0 0 0 158,677 20,000 20,000 27,266 12,500 (7,500) 3,051,000 2,226,708 2,226,708 2,288,250 3,063,200 836,492 3,051,000 2,226,708 2,226,708 2,288,250 3,063,200 836,492 3,245,010 2,276,708 2,276,708 2,403,990 3,105,700 828,992 3,245,010 2,276,708 2,276,708 2,403,990 3,105,700 828,992 CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 11 329 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 503 - PARK EQUIP & FACILITY FUND 0000 - Undesignated 360 - Use of Money & Property 125,591 50,000 50,000 17,271 50,000 0 0%503-0000-41900 Allocated Interest 52,024 0 0 0 0 0 0%503-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:177,615 50,000 50,000 17,271 50,000 0 0% 390 - Other Financing Sources 1,000,000 450,000 450,000 750,000 475,000 25,000 6%503-0000-43620 Park Facility Charges 390 - Other Financing Sources Totals:1,000,000 450,000 450,000 750,000 475,000 25,000 6% 0000 - Undesignated Totals:1,177,615 500,000 500,000 767,271 525,000 25,000 5% 503 - PARK EQUIP & FACILITY FUND Totals:1,177,615 500,000 500,000 767,271 525,000 25,000 5% 504 - INSURANCE FUND 0000 - Undesignated 360 - Use of Money & Property 17,313 2,000 2,000 678 17,000 15,000 750%504-0000-41900 Allocated Interest 4,996 0 0 0 0 0 0%504-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:22,309 2,000 2,000 678 17,000 15,000 750% 390 - Other Financing Sources 1,361,230 1,361,230 1,361,230 1,022,348 1,390,600 29,370 2%504-0000-43637 Insurance Charges 390 - Other Financing Sources Totals:1,361,230 1,361,230 1,361,230 1,022,348 1,390,600 29,370 2% 0000 - Undesignated Totals:1,383,539 1,363,230 1,363,230 1,023,025 1,407,600 44,370 3% 504 - INSURANCE FUND Totals:1,383,539 1,363,230 1,363,230 1,023,025 1,407,600 44,370 3% 601 - SILVERROCK RESORT 0000 - Undesignated 340 - Charges for Services 4,431,243 4,407,000 4,407,000 3,188,196 4,328,000 (79,000)-2%601-0000-44000 Green Fees 152,112 180,000 180,000 109,559 176,000 (4,000)-2%601-0000-44001 Range Fees 230,265 247,500 247,500 143,860 216,000 (31,500)-13%601-0000-44002 Merchandise 151,505 150,000 150,000 119,165 150,000 0 0%601-0000-44004 Resident Card 340 - Charges for Services Totals:4,965,125 4,984,500 4,984,500 3,560,781 4,870,000 (114,500)-2% 390 - Other Financing Sources 1,466,000 500,000 500,000 500,000 600,000 100,000 20%601-0000-49500 Transfers In 390 - Other Financing Sources Totals:1,466,000 500,000 500,000 500,000 600,000 100,000 20% 0000 - Undesignated Totals:6,431,125 5,484,500 5,484,500 4,060,781 5,470,000 (14,500)0% 601 - SILVERROCK RESORT Totals:6,431,125 5,484,500 5,484,500 4,060,781 5,470,000 (14,500)0% 125,591 50,000 50,000 17,271 50,000 0 52,024 0 0 0 0 0 177,615 50,000 50,000 17,271 50,000 0 1,000,000 450,000 450,000 750,000 475,000 25,000 1,000,000 450,000 450,000 750,000 475,000 25,000 1,177,615 500,000 500,000 767,271 525,000 25,000 1,177,615 500,000 500,000 767,271 525,000 25,000 17,313 2,000 2,000 678 17,000 15,000 4,996 0 0 0 0 0 22,309 2,000 2,000 678 17,000 15,000 1,361,230 1,361,230 1,361,230 1,022,348 1,390,600 29,370 1,361,230 1,361,230 1,361,230 1,022,348 1,390,600 29,370 1,383,539 1,363,230 1,363,230 1,023,025 1,407,600 44,370 1,383,539 1,363,230 1,363,230 1,023,025 1,407,600 44,370 4,431,243 4,407,000 4,407,000 3,188,196 4,328,000 (79,000) 152,112 180,000 180,000 109,559 176,000 (4,000) 230,265 247,500 247,500 143,860 216,000 (31,500) 151,505 150,000 150,000 119,165 150,000 0 4,965,125 4,984,500 4,984,500 3,560,781 4,870,000 (114,500) 1,466,000 500,000 500,000 500,000 600,000 100,000 1,466,000 500,000 500,000 500,000 600,000 100,000 6,431,125 5,484,500 5,484,500 4,060,781 5,470,000 (14,500) 6,431,125 5,484,500 5,484,500 4,060,781 5,470,000 (14,500) CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 12 330 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 602 - SILVERROCK GOLF RESERVE 0000 - Undesignated 360 - Use of Money & Property 24,960 10,000 10,000 5,616 26,000 16,000 160%602-0000-41900 Allocated Interest 7,291 0 0 0 0 0 0%602-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:32,251 10,000 10,000 5,616 26,000 16,000 160% 390 - Other Financing Sources 82,000 88,000 88,000 88,000 87,000 (1,000)-1%602-0000-49500 Transfers In 390 - Other Financing Sources Totals:82,000 88,000 88,000 88,000 87,000 (1,000)-1% 0000 - Undesignated Totals:114,251 98,000 98,000 93,616 113,000 15,000 15% 602 - SILVERROCK GOLF RESERVE Totals:114,251 98,000 98,000 93,616 113,000 15,000 15% 760 - SUPPLEMENTAL PENSION PLAN 0000 - Undesignated 360 - Use of Money & Property 2,509 2,000 2,000 452 2,000 0 0%760-0000-41900 Allocated Interest 1,155 0 0 0 0 0 0%760-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:3,664 2,000 2,000 452 2,000 0 0% 390 - Other Financing Sources 5,000 5,000 5,000 5,000 5,000 0 0%760-0000-49500 Transfers In 390 - Other Financing Sources Totals:5,000 5,000 5,000 5,000 5,000 0 0% 0000 - Undesignated Totals:8,664 7,000 7,000 5,452 7,000 0 0% 760 - SUPPLEMENTAL PENSION PLAN Totals:8,664 7,000 7,000 5,452 7,000 0 0% 761 - CERBT OPEB TRUST 0000 - Undesignated 360 - Use of Money & Property 152,894 40,000 40,000 100,200 40,000 0 0%761-0000-41915 Non-Allocated Interest 360 - Use of Money & Property Totals:152,894 40,000 40,000 100,200 40,000 0 0% 0000 - Undesignated Totals:152,894 40,000 40,000 100,200 40,000 0 0% 761 - CERBT OPEB TRUST Totals:152,894 40,000 40,000 100,200 40,000 0 0% 24,960 10,000 10,000 5,616 26,000 16,000 7,291 0 0 0 0 0 32,251 10,000 10,000 5,616 26,000 16,000 82,000 88,000 88,000 88,000 87,000 (1,000) 82,000 88,000 88,000 88,000 87,000 (1,000) 114,251 98,000 98,000 93,616 113,000 15,000 114,251 98,000 98,000 93,616 113,000 15,000 2,509 2,000 2,000 452 2,000 0 1,155 0 0 0 0 0 3,664 2,000 2,000 452 2,000 0 5,000 5,000 5,000 5,000 5,000 0 5,000 5,000 5,000 5,000 5,000 0 8,664 7,000 7,000 5,452 7,000 0 8,664 7,000 7,000 5,452 7,000 0 152,894 40,000 40,000 100,200 40,000 0 152,894 40,000 40,000 100,200 40,000 0 152,894 40,000 40,000 100,200 40,000 0 152,894 40,000 40,000 100,200 40,000 0 CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 13 331 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 762 - PARS PENSION TRUST 0000 - Undesignated 360 - Use of Money & Property 380,521 200,000 200,000 293,627 200,000 0 0%762-0000-41915 Non-Allocated Interest 360 - Use of Money & Property Totals:380,521 200,000 200,000 293,627 200,000 0 0% 0000 - Undesignated Totals:380,521 200,000 200,000 293,627 200,000 0 0% 762 - PARS PENSION TRUST Totals:380,521 200,000 200,000 293,627 200,000 0 0% 380,521 200,000 200,000 293,627 200,000 0 380,521 200,000 200,000 293,627 200,000 0 380,521 200,000 200,000 293,627 200,000 0 380,521 200,000 200,000 293,627 200,000 0 CITY OF LA QUINTA SPECIAL FUND REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 14 332 REVENUE NOTES BY FUND NUMBER – 105 Disaster Recovery Fund This fund was created due to the passage of the American Rescue Plan Act (ARPA) in March 2021, the $1.9 trillion federal stimulus package, included funding for local governments to address the health and economic impacts caused by the pandemic. The City received a total of about $9.9 million in one-time Coronavirus State and Local Fiscal Relief Funds. The funds were received as revenue replacement funds under the Treasury’s Final Rule and can be used for the provision of general government services. The City elected to use the funding for police services in FY 2024/25 and 2025/26. 201 Gas Tax Fund This fund includes both Highway Users Tax Account (HUTA) and Road Maintenance & Rehabilitation Account (RMRA, also known as SB1) Revenues. The projections are provided by the State and despite lower fuel consumption, scheduled rate increases stipulated in SB1 have kept local allocations of revenue growing at a modest pace; current estimates show total statewide local streets and roads allocations will grow by 2%. Streets and Highways Code Sections 2103-2108 HUTA are allocated to counties and cities based on designated allotments and population. Each May and January, the State provides revised projections and the City adjusts revenue projections accordingly.  Section 2105 allocates 11.5 percent of tax revenues in excess of 9 cents per gallon monthly among cities based on population.  Section 2106 revenues equal to 1.04 cent per gallon are allocated to the State Bicycle Transportation Account (7.2 million per year), $400 per month to each City, $800 per month to each County, and the residual amount is allocated to cities and counties based on registered vehicles and population.  Section 2107 provides monthly allocations to cities of 1.315 cents per gallon of gasoline, 1.8 cents per gallon of diesel, and 2.59 cents per liquefied petroleum gas allocated based on population.  Section 2107.5 is residual revenue remaining after Sections 2103 - 2107 are allocated to cities annually in July based on population ranges. A range of 25,000 to 49,999 residents receives $6,000.  After State transportation debt service is paid, 44% of the remaining excise taxes are evenly split between cities and counties using the current HUTA formulas. Section 2103 funds are allocated to cities on a per capita basis.  This revenue source is derived from the Road Repair and Accountability Act of 2017 (SB1 Beall). On July 1, 2020, and every July 1 thereafter, the gasoline and diesel fuel excise tax rates and vehicle registration taxes will be increasing by the change in the California Consumer Price Index (CPI). SB1 funds are subject to a special annual audit and a minimum annual maintenance of effort contribution for road improvements paid from the General Fund, which is $1,786,109. 202 Library and Museum Fund operational revenues are derived from property taxes, which are used to support activities of the Library, Museum, and Makerspace. 203 Public Safety Fund revenue is derived from Measure G Sales Taxes for public safety expenditures. There are no proposed transfers in for 2025/26. 210 Federal Assistance Fund revenues are derived from federal allocations for Community Development Block Grants (CDBG); 15% can be used for public service projects and 85% for public improvement or housing services. CITY OF LA QUINTA SPECIAL FUND REVENUE NOTES FY 2025/26 PROPOSED BUDGET 15 333 212 SLESA COPS Fund revenues are derived from the State of California and are received for law enforcement activities of the Riverside County’s Sheriff’s Department, also known as Supplemental Law Enforcement Services Fund Activities (SLESA). 215 Lighting and Landscape Fund assessments are based on an annual assessment rate of $35.60 per Equivalent Benefit Unit (EBU, which is generally one EBU per Single Family Residence parcel), which was established in 1997 and remains unchanged. The district was formed pursuant to the 1972 Act, which permits the establishment of assessment districts by cities for the purpose of providing for the maintenance of certain public improvements. Changes to the assessment rate are bound by Proposition 218 regulations. Each year the assessment information is submitted to the County Auditor/Controller and included in property tax rolls. The Fund is largely supported by the General Fund with transfer in contributions for operational expenses. 220 Quimby Fund fees are established under Government Code Section 66477 which predates the Mitigation Fee Act and authorizes a city or county to require dedication of land, payment of fees in-lieu of dedication, or a combination of both, for park and recreational purposes as a condition of approval of a residential subdivision. 221 AB 939 CalRecycle Fund is used to account for franchise fees collected from the city waste hauler that are used to reduce waste sent to landfills through recycling efforts. The City has a Franchise Agreement with Burrtec Waste and Recycling Services, LLC effective July 2022 through June 2037. 223 Measure A Fund Revenue received is derived from a half-cent sales tax first passed by voters in 1988 and extended by vote in 2002 to continue to fund transportation improvements through 2039. Funds are distributed proportionately to three geographic areas based on the sales tax collected within each. In the Coachella Valley, 50% goes to Highways & Regional Arterials, 35% to Local Streets & Roads, and 15% to Public Transit. 225 Infrastructure Fund is being phased out and not subject to collection of future revenue from developments. 226 Emergency Management Performance Fund revenues are received from the State Homeland Security Grant Program to local governments to further assist the State of California’s efforts to prepare for natural and man-made disasters and terrorism related impacts to communities. 227 State Homeland Security Programs (SHSP) Fund revenue and expenditures are recognized when grants are awarded. Funds are received from the State Homeland Security Grant Program to local governments to further assist State of California’s efforts to prepare for natural and man-made disasters and terrorism related impacts to communities. 230 CASp, AB 1379 Fund SB 1186 revenue is derived from a $4 per business license renewal fee and its purpose is to increase disability access and compliance with construction-related accessibility requirements at businesses and facilities that are open to the public. The fee is divided between the City, which retains 90 percent, and the Division of the State Architect (DSA), which receives 10 percent. CITY OF LA QUINTA SPECIAL FUND REVENUE NOTES FY 2025/26 PROPOSED BUDGET 16 334 235 South Coast Air Quality Fund revenues recognize contributions from the South Coast Air Quality Management District. Uses are limited to the reduction and control of airborne pollutants. 241 Housing Authority Fund Second Silent Trust Deed Payments and Home/Land Sale Proceeds vary from year-to-year. Additional repayment of silent second trust deeds are recognized upon receipt. 243 RDA Low-Mod Housing Fund The total 2025/26 former Redevelopment Agency loan repayment is $3,575,934; as required under Redevelopment dissolution 20% or $715,187 will be recognized in reserves within this Housing Fund. 247 Economic Development Fund revenues can be used for future economic development; fiscal year 2025/26 revenues will be used for additional economic development outreach. 249 Successor Agency (SA) 2011 Low/Mod Bond Fund In FY 2023/24, this fund was used for the acquisition of the vacant property located west of the Home Depot Center on Highway 111, on the northeast corner of Highway 111 and Dune Palms Road proposed to be developed as an affordable housing development with a connecting thoroughfare to CV Link. Remaining bond funds continue to earn interest and are available for future housing projects. 250 Transportation Fees Fund are dependent upon new development. California Complete Streets Act requires local governments in the state to address the transportation needs of all users, including pedestrians, cyclists, and transit riders. 251 Park and Recreation DIF Fund fees are dependent upon new residential development. Impact fees for parkland acquisition apply to residential projects not involving a subdivision, and impact fees for construction of park improvements apply to all residential development projects. Fees collected are used to provide additional parks to mitigate the impact of new development in the City. 252 Civic Center DIF Fund fees are dependent upon new development. The purpose of the impact fee is to pay for new development’ s proportionate share of the cost of providing Civic Center facilities to serve residents and businesses in La Quinta. Impact fees will be used to pay for future expansion of the Civic Center Campus. 253 Library DIF Fund fees are dependent upon new residential development. Impact fees are collected for the La Quinta Library, which is owned by the City of La Quinta and operated by the Riverside County Library System. 254 Community and Cultural Center DIF Fund fees are dependent upon new residential development. This fee was formerly known as the Community Centers impact fee. In 2020, the scope of the fee was broadened to include cultural facilities such as the La Quinta Museum. 255 Street Facility DIF Fund fees were dependent upon new development. An updated DIF Study was adopted on February 4, 2020 with an effective date of July 1, 2020. The updated DIF Study phased out the Street Facility DIF and the Park Facility DIF and replaced these fees with one Maintenance Facilities DIF fee. 256 Park Facility DIF Fund fees were dependent upon new development. An updated DIF Study was adopted on February 4, 2020 with an effective date of July 1, 2020. The updated DIF CITY OF LA QUINTA SPECIAL FUND REVENUE NOTES FY 2025/26 PROPOSED BUDGET 17 335 Study phased out the Street Facility DIF and the Park Facility DIF and replaced these fees with one Maintenance Facilities DIF fee. 257 Fire Facility DIF Fund fees are dependent upon new development. The City contracts with the Riverside County Fire Department for fire protection, fire prevention, rescue, Fire Marshall, and medical emergency services. The City builds and owns the fire stations in La Quinta. Those stations are part of an integrated system of fire protection facilities used by the Riverside County Fire Department to provide fire protection to La Quinta and surrounding communities, including unincorporated portions of the County. There are three existing fire stations in the City and preliminary plans call for a fourth fire station to be constructed in or near the southeastern quadrant of La Quinta. That station will be needed to provide an acceptable level of service to development in that part of the City and in portions of unincorporated Riverside County. 259 Maintenance Facilities Fund was created in FY 2020/21 after the updated DIF Study was adopted on February 4, 2020 with an effective date of July 1, 2020. The updated DIF Study phased out the Street Facility DIF and the Park Facility DIF and replaced these fees with one Maintenance Facilities DIF fee. Fees are dependent upon new development and are used for the corporate yard maintenance facilities and equipment needed to serve future development in La Quinta. 270 Art in Public Places Fund transfers in are from the General Fund for operational expenses. Fees are dependent upon new development. These fees require a separate study from other development impact fees. 275 LQ Public Safety Officer Fund transfers in are from the General Fund. Annual transfer in from General Fund; distributed to public safety officers disabled or killed in the line of duty. 310 LQ Finance Authority Debt Service Fund is used to account for the debt service that will be used for the principal and interest payments of the Financing Authority’s outstanding debt and any related reporting requirements. The 1996 Civic Center Bond was paid off in October 2018, resulting in savings to the General Fund. An annual State Controller’s Report and audit are required. 401 Capital Improvement Programs Fund has large variances annually because of multi-year project carryovers. A listing of 2025/26 projects is presented within the Capital Improvement Fund expenditures. 501, 502, 503, and 504 Internal Services Funds in which revenues are largely derived from the General Fund based on employee and equipment allocations by division. 601 SilverRock Resort Fund transfers in budget of $600,000 is derived from the General Fund as a contribution for anticipated operational expenses. 602 SilverRock Golf Reserve Fund transfers in budget of $87,000 is derived from the SilverRock Resort Fund as a 2% annual contribution to the capital reserve as contained the agreement. 760 Supplemental Pension Plan Fund transfers are from the General Fund. 761 Supplemental Pension Plan Fund The City participates in the California Employers’ Retiree Benefit Trust (CERBT) for the purpose of accumulating funding for OPEB obligations. CITY OF LA QUINTA SPECIAL FUND REVENUE NOTES FY 2025/26 PROPOSED BUDGET 18 336 The CERBT is a Section 115 Trust and is an agent multiple employer plan for those electing to prefund OPEB obligations. Revenues in this fund can come from earnings on the portfolio or additional contribution transfers in from the General Fund. 762 Pension Trust Fund In 2019, the City established a Section 115 Trust Agreement with U.S. Bank National Association and Public Agency Retirement Services (PARS), Trust Administrator. The Section 115 Trust was established to set aside monies to fund the City’s pension obligations. Contributions to the Section 115 Trust are irrevocable, the assets provide benefits to plan members, and the assets are protected from creditors of the City. The purpose of the Trust is to address the City’s pension obligations by accumulating assets to reduce the net pension liability. Revenues in this fund can come from earnings on the portfolio or additional contribution transfers in from the General Fund. CITY OF LA QUINTA SPECIAL FUND REVENUE NOTES FY 2025/26 PROPOSED BUDGET 19 337 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 202 - LIBRARY & MUSEUM FUND 3004 - Library 50 - Salaries and Benefits 63,988 49,900 49,900 48,784 54,200 4,300 9%202-3004-50101 Permanent Full Time 6,650 5,800 5,800 5,474 6,400 600 10%202-3004-50200 PERS - City Portion 784 520 520 454 520 0 0%202-3004-50215 Other - Fringe Benefits 11,129 11,000 11,000 5,803 11,000 0 0%202-3004-50221 Medical Insurance 97 0 0 34 0 0 0%202-3004-50222 Vision Insurance 544 0 0 195 0 0 0%202-3004-50223 Dental Insurance 40 0 0 24 0 0 0%202-3004-50224 Life Insurance 388 400 400 318 400 0 0%202-3004-50225 Long Term Disability 2,000 2,000 2,000 1,500 2,300 300 15%202-3004-50230 Workers Comp Insurance 928 800 800 707 800 0 0%202-3004-50240 Social Security Medicare 50 - Salaries and Benefits Totals:86,548 70,420 70,420 63,294 75,620 5,200 7% 60 - Contract Services 11,160 33,600 33,600 27,678 35,800 2,200 7%202-3004-60112 Landscape Contract 1,043,321 1,286,800 1,286,800 667,311 1,683,600 396,800 31%202-3004-60114 County of Riverside - Library 39,172 60,000 60,000 29,379 65,000 5,000 8%202-3004-60115 Janitorial 844 1,000 1,000 923 1,000 0 0%202-3004-60116 Pest Control 2,087 4,000 4,000 1,298 4,000 0 0%202-3004-60123 Security & Alarm 2,912 0 0 4,901 1,500 1,500 0%202-3004-61400 Cable/Internet - Utilities 60 - Contract Services Totals:1,099,496 1,385,400 1,385,400 731,489 1,790,900 405,500 29% 62 - Maintenance & Operations 991 100,000 100,000 1,280 100,000 0 0%202-3004-60420 Operating Supplies 0 15,000 15,000 0 15,000 0 0%202-3004-60424 Materials- New Exhibits 0 5,000 5,000 133 5,000 0 0%202-3004-60431 Materials/Supplies 172 500 500 0 500 0 0%202-3004-60664 Fire Extinguisher Service 0 1,000 1,000 0 1,000 0 0%202-3004-60665 Maint-Other Equipment 14,122 95,000 95,000 7,118 95,000 0 0%202-3004-60667 HVAC 55,778 165,000 165,000 30,422 165,000 0 0%202-3004-60691 Maintenance/Services 62 - Maintenance & Operations Totals:71,063 381,500 381,500 38,953 381,500 0 0% 66 - Utilities 860 3,000 3,000 3,875 3,000 0 0%202-3004-61100 Gas - Utilities 61,201 60,000 60,000 48,672 60,000 0 0%202-3004-61101 Electricity - Utilities 0 500 500 0 500 0 0%202-3004-61200 Water - Utilities 66 - Utilities Totals:62,061 63,500 63,500 52,546 63,500 0 0% 68 - Capital Expenses 0 10,000 10,000 1,555 10,000 0 0%202-3004-71020 Furniture 0 0 150,000 119,320 150,000 0 0%202-3004-72110 Building Improvements 68 - Capital Expenses Totals:0 10,000 160,000 120,875 160,000 0 0% 63,988 49,900 49,900 48,784 54,200 4,300 6,650 5,800 5,800 5,474 6,400 600 784 520 520 454 520 0 11,129 11,000 11,000 5,803 11,000 0 97 0 0 34 0 0 544 0 0 195 0 0 40 0 0 24 0 0 388 400 400 318 400 0 2,000 2,000 2,000 1,500 2,300 300 928 800 800 707 800 0 86,548 70,420 70,420 63,294 75,620 5,200 11,160 33,600 33,600 27,678 35,800 2,200 1,043,321 1,286,800 1,286,800 667,311 1,683,600 396,800 39,172 60,000 60,000 29,379 65,000 5,000 844 1,000 1,000 923 1,000 0 2,087 4,000 4,000 1,298 4,000 0 2,912 0 0 4,901 1,500 1,500 1,099,496 1,385,400 1,385,400 731,489 1,790,900 405,500 991 100,000 100,000 1,280 100,000 0 0 15,000 15,000 0 15,000 0 0 5,000 5,000 133 5,000 0 172 500 500 0 500 0 0 1,000 1,000 0 1,000 0 14,122 95,000 95,000 7,118 95,000 0 55,778 165,000 165,000 30,422 165,000 0 71,063 381,500 381,500 38,953 381,500 0 860 3,000 3,000 3,875 3,000 0 61,201 60,000 60,000 48,672 60,000 0 0 500 500 0 500 0 62,061 63,500 63,500 52,546 63,500 0 0 10,000 10,000 1,555 10,000 0 0 0 150,000 119,320 150,000 0 0 10,000 160,000 120,875 160,000 0 CITY OF LA QUINTA LIBRARY & MUSEUM FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 20 338 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 69 - Internal Service Charges 13,500 13,500 13,500 10,125 13,900 400 3%202-3004-91842 Liability Insurance & Claims 5,600 5,600 5,600 4,200 5,900 300 5%202-3004-91843 Property & Crime Insurance 11,700 11,700 11,700 8,775 12,100 400 3%202-3004-91844 Earthquake Insurance 11,600 11,600 11,600 8,700 11,900 300 3%202-3004-98110 Information Tech Charges 69 - Internal Service Charges Totals:42,400 42,400 42,400 31,800 43,800 1,400 3% 3004 - Library Totals:1,361,568 1,953,220 2,103,220 1,038,957 2,515,320 412,100 20% 3006 - Museum 60 - Contract Services 220,268 221,450 221,450 8,103 228,100 6,650 3%202-3006-60105 Museum Operations 2,328 24,000 24,000 17,300 25,500 1,500 6%202-3006-60112 Landscape Contract 11,874 15,000 15,000 9,402 15,750 750 5%202-3006-60115 Janitorial 843 800 800 1,851 4,000 3,200 400%202-3006-60116 Pest Control 2,238 2,500 2,500 2,519 4,000 1,500 60%202-3006-60123 Security & Alarm 60 - Contract Services Totals:237,552 263,750 263,750 39,174 277,350 13,600 5% 62 - Maintenance & Operations 0 1,000 1,000 0 0 (1,000)-100%202-3006-60122 Credit Card Fees 210 5,000 5,000 296 5,000 0 0%202-3006-60420 Operating Supplies 633 15,000 15,000 1,657 15,000 0 0%202-3006-60431 Materials/Supplies 150 500 500 0 500 0 0%202-3006-60664 Fire Extinguisher Service 13,354 20,000 20,000 13,479 20,000 0 0%202-3006-60667 HVAC 13,155 20,000 20,000 4,693 20,000 0 0%202-3006-60691 Maintenance/Services 62 - Maintenance & Operations Totals:27,502 61,500 61,500 20,125 60,500 (1,000)-2% 66 - Utilities 18,245 17,000 17,000 13,727 17,000 0 0%202-3006-61101 Electricity - Utilities 4,174 3,500 3,500 3,605 3,500 0 0%202-3006-61200 Water - Utilities 1,581 1,700 1,700 1,769 1,700 0 0%202-3006-61300 Telephone - Utilities 66 - Utilities Totals:24,000 22,200 22,200 19,101 22,200 0 0% 69 - Internal Service Charges 23,350 23,350 23,350 17,512 24,500 1,150 5%202-3006-91842 Liability Insurance & Claims 9,000 9,000 9,000 6,750 9,400 400 4%202-3006-91843 Property & Crime Insurance 15,000 15,000 15,000 11,250 15,450 450 3%202-3006-91844 Earthquake Insurance 10,000 10,000 10,000 7,500 10,500 500 5%202-3006-98110 Information Tech Charges 69 - Internal Service Charges Totals:57,350 57,350 57,350 43,012 59,850 2,500 4% 99 - Transfers Out 389,578 0 2,304,745 14,782 0 (2,304,745)-100%202-3006-99900 Transfers Out 99 - Transfers Out Totals:389,578 0 2,304,745 14,782 0 (2,304,745) -100% 3006 - Museum Totals:735,982 404,800 2,709,545 136,195 419,900 (2,289,645) -85% 3009 - MakerSpace Operations 60 - Contract Services 155,460 180,595 180,595 0 191,200 10,605 6%202-3009-60105 Makerspace Operations 13,500 13,500 13,500 10,125 13,900 400 5,600 5,600 5,600 4,200 5,900 300 11,700 11,700 11,700 8,775 12,100 400 11,600 11,600 11,600 8,700 11,900 300 42,400 42,400 42,400 31,800 43,800 1,400 1,361,568 1,953,220 2,103,220 1,038,957 2,515,320 412,100 220,268 221,450 221,450 8,103 228,100 6,650 2,328 24,000 24,000 17,300 25,500 1,500 11,874 15,000 15,000 9,402 15,750 750 843 800 800 1,851 4,000 3,200 2,238 2,500 2,500 2,519 4,000 1,500 237,552 263,750 263,750 39,174 277,350 13,600 0 1,000 1,000 0 0 (1,000) 210 5,000 5,000 296 5,000 0 633 15,000 15,000 1,657 15,000 0 150 500 500 0 500 0 13,354 20,000 20,000 13,479 20,000 0 13,155 20,000 20,000 4,693 20,000 0 27,502 61,500 61,500 20,125 60,500 (1,000) 18,245 17,000 17,000 13,727 17,000 0 4,174 3,500 3,500 3,605 3,500 0 1,581 1,700 1,700 1,769 1,700 0 24,000 22,200 22,200 19,101 22,200 0 23,350 23,350 23,350 17,512 24,500 1,150 9,000 9,000 9,000 6,750 9,400 400 15,000 15,000 15,000 11,250 15,450 450 10,000 10,000 10,000 7,500 10,500 500 57,350 57,350 57,350 43,012 59,850 2,500 389,578 0 2,304,745 14,782 0 (2,304,745) 389,578 0 2,304,745 14,782 0 (2,304,745) 735,982 404,800 2,709,545 136,195 419,900 (2,289,645) 155,460 180,595 180,595 0 191,200 10,605 CITY OF LA QUINTA LIBRARY & MUSEUM FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 21 339 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 0 1,000 1,000 0 1,000 0 0%202-3009-60122 Credit Card Fees 60 - Contract Services Totals:155,460 181,595 181,595 0 192,200 10,605 6% 62 - Maintenance & Operations 98 10,000 10,000 0 10,000 0 0%202-3009-60420 Operating Supplies 0 1,000 1,000 0 0 (1,000)-100%202-3009-60424 Materials - New Exhibits 62 - Maintenance & Operations Totals:98 11,000 11,000 0 10,000 (1,000)-9% 65 - Repair & Maintenance 1,380 5,000 5,000 2,988 6,000 1,000 20%202-3009-60691 Maintenance/Services 65 - Repair & Maintenance Totals:1,380 5,000 5,000 2,988 6,000 1,000 20% 68 - Capital Expenses 1,770 0 0 0 0 0 0%202-3009-80100 Machinery & Equipment 68 - Capital Expenses Totals:1,770 0 0 0 0 0 0% 3009 - MakerSpace Operations Totals:158,707 197,595 197,595 2,988 208,200 10,605 5% 202 - LIBRARY & MUSEUM FUND Totals:2,256,256 2,555,615 5,010,360 1,178,140 3,143,420 (1,866,940) -37% 0 1,000 1,000 0 1,000 0 155,460 181,595 181,595 0 192,200 10,605 98 10,000 10,000 0 10,000 0 0 1,000 1,000 0 0 (1,000) 98 11,000 11,000 0 10,000 (1,000) 1,380 5,000 5,000 2,988 6,000 1,000 1,380 5,000 5,000 2,988 6,000 1,000 1,770 0 0 0 0 0 1,770 0 0 0 0 0 158,707 197,595 197,595 2,988 208,200 10,605 2,256,256 2,555,615 5,010,360 1,178,140 3,143,420 (1,866,940) CITY OF LA QUINTA LIBRARY & MUSEUM FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 22 340 Fund: 202 - LIBRARY & MUSEUM FUND Permanent Full Time 54,200.00202-3004-50101 20% - Community Services Deputy Director (40% Community Services Admin, 40% Wellness Center) 20% - Sr. Management Analyst (80% Community Services Admin) Landscape Contract 35,800.00202-3004-60112 For Library facility County of Riverside - Library 1,683,600.00202-3004-60114 Library services and programs are contracted with the County of Riverside through June 30, 2029 Building Improvements 150,000.00202-3004-72110 Roof maintenance and repairs Landscape Contract 25,500.00202-3006-60112 For Museum facility CITY OF LA QUINTA LIBRARY & MUSEUM FUND EXPENSE NOTES FY 2025/26 PROPOSED BUDGET 23 341 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 201 - GAS TAX FUND 7003 - Streets- Traffic 50 - Salaries and Benefits 337,200 528,500 528,500 297,048 536,300 7,800 1%201-7003-50101 Permanent Full Time 1,794 2,500 2,500 14,875 2,500 0 0%201-7003-50105 Salaries - Overtime 10,977 10,000 10,000 8,948 10,000 0 0%201-7003-50106 Standby 20,556 20,000 20,000 12,786 20,000 0 0%201-7003-50107 Standby Overtime 703 0 0 417 480 480 0%201-7003-50150 Other Compensation 32,889 51,500 51,500 32,467 53,800 2,300 4%201-7003-50200 PERS-City Portion 4,190 10,400 10,400 4,433 10,400 0 0%201-7003-50215 Other Fringe Benefits 127,878 190,500 190,500 100,234 221,200 30,700 16%201-7003-50221 Medical Insurance 1,509 0 0 1,210 0 0 0%201-7003-50222 Vision Insurance 7,782 0 0 5,857 0 0 0%201-7003-50223 Dental Insurance 318 0 0 271 0 0 0%201-7003-50224 Life Insurance 1,806 3,500 3,500 2,203 3,400 (100)-3%201-7003-50225 Long Term Disability 38,100 40,000 40,000 30,000 40,300 300 1%201-7003-50230 Workers Comp Insurance 6,361 7,500 7,500 5,529 8,600 1,100 15%201-7003-50240 Social Security-Medicare 1,186 0 0 0 0 0 0%201-7003-50241 Social Security- FICA 63,689 0 0 44,091 50,600 50,600 0%201-7003-50251 Temporary 50 - Salaries and Benefits Totals:656,937 864,400 864,400 560,369 957,580 93,180 11% 60 - Contract Services 3,300 3,300 3,300 10,020 3,300 0 0%201-7003-60103 Professional Services 0 20,000 20,000 3,200 20,000 0 0%201-7003-60141 Street Striping 60 - Contract Services Totals:3,300 23,300 23,300 13,220 23,300 0 0% 62 - Maintenance & Operations 0 0 0 59 500 500 0%201-7003-60320 Travel & Training 6,883 10,000 10,000 4,388 10,000 0 0%201-7003-60427 Safety Gear 9,268 5,000 5,000 0 5,000 0 0%201-7003-60428 Barricades 81,012 50,000 50,000 99,328 50,000 0 0%201-7003-60429 Traffic Control Signs 5,251 15,000 15,000 20,140 15,000 0 0%201-7003-60430 Asphalt 14,750 40,000 40,000 4,911 40,000 0 0%201-7003-60431 Materials/Supplies 3,776 8,500 8,500 2,184 8,500 0 0%201-7003-60433 Paint/Legends 10,325 5,000 5,000 1,958 5,000 0 0%201-7003-60672 Storm Drains 2,465 10,000 10,000 4,312 10,000 0 0%201-7003-60690 Uniforms 62 - Maintenance & Operations Totals:133,730 143,500 143,500 137,280 144,000 500 0% 66 - Utilities 15,302 9,000 9,000 10,002 9,000 0 0%201-7003-61101 Electricity - Utilities 66 - Utilities Totals:15,302 9,000 9,000 10,002 9,000 0 0% 68 - Capital Expenses 295 5,000 5,000 1,296 5,000 0 0%201-7003-61701 Equipment Rental 542,713 0 200,000 78,087 0 (200,000)-100%201-7003-72111 Road Improvements 0 200,000 650,000 2,802 200,000 (450,000)-69%201-7003-80100 Machinery & Equipment 68 - Capital Expenses Totals:543,008 205,000 855,000 82,186 205,000 (650,000)-76% 337,200 528,500 528,500 297,048 536,300 7,800 1,794 2,500 2,500 14,875 2,500 0 10,977 10,000 10,000 8,948 10,000 0 20,556 20,000 20,000 12,786 20,000 0 703 0 0 417 480 480 32,889 51,500 51,500 32,467 53,800 2,300 4,190 10,400 10,400 4,433 10,400 0 127,878 190,500 190,500 100,234 221,200 30,700 1,509 0 0 1,210 0 0 7,782 0 0 5,857 0 0 318 0 0 271 0 0 1,806 3,500 3,500 2,203 3,400 (100) 38,100 40,000 40,000 30,000 40,300 300 6,361 7,500 7,500 5,529 8,600 1,100 1,186 0 0 0 0 0 63,689 0 0 44,091 50,600 50,600 656,937 864,400 864,400 560,369 957,580 93,180 3,300 3,300 3,300 10,020 3,300 0 0 20,000 20,000 3,200 20,000 0 3,300 23,300 23,300 13,220 23,300 0 0 0 0 59 500 500 6,883 10,000 10,000 4,388 10,000 0 9,268 5,000 5,000 0 5,000 0 81,012 50,000 50,000 99,328 50,000 0 5,251 15,000 15,000 20,140 15,000 0 14,750 40,000 40,000 4,911 40,000 0 3,776 8,500 8,500 2,184 8,500 0 10,325 5,000 5,000 1,958 5,000 0 2,465 10,000 10,000 4,312 10,000 0 133,730 143,500 143,500 137,280 144,000 500 15,302 9,000 9,000 10,002 9,000 0 15,302 9,000 9,000 10,002 9,000 0 295 5,000 5,000 1,296 5,000 0 542,713 0 200,000 78,087 0 (200,000) 0 200,000 650,000 2,802 200,000 (450,000) 543,008 205,000 855,000 82,186 205,000 (650,000) CITY OF LA QUINTA GAS TAX FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 24 342 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 69 - Internal Service Charges 231,000 231,000 231,000 173,250 231,500 500 0%201-7003-98110 Information Tech Charges 504,900 504,900 504,900 378,675 517,000 12,100 2%201-7003-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:735,900 735,900 735,900 551,925 748,500 12,600 2% 99 - Transfers Out 969,409 1,462,000 3,118,102 772,130 1,006,705 (2,111,397)-68%201-7003-99900 Transfers Out 99 - Transfers Out Totals:969,409 1,462,000 3,118,102 772,130 1,006,705 (2,111,397) -68% 7003 - Streets- Traffic Totals:3,057,585 3,443,100 5,749,202 2,127,112 3,094,085 (2,655,117) -46% 201 - GAS TAX FUND Totals:3,057,585 3,443,100 5,749,202 2,127,112 3,094,085 (2,655,117) -46% 231,000 231,000 231,000 173,250 231,500 500 504,900 504,900 504,900 378,675 517,000 12,100 735,900 735,900 735,900 551,925 748,500 12,600 969,409 1,462,000 3,118,102 772,130 1,006,705 (2,111,397) 969,409 1,462,000 3,118,102 772,130 1,006,705 (2,111,397) 3,057,585 3,443,100 5,749,202 2,127,112 3,094,085 (2,655,117) 3,057,585 3,443,100 5,749,202 2,127,112 3,094,085 (2,655,117) CITY OF LA QUINTA GAS TAX FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 25 343 Fund: 201 - GAS TAX FUND Permanent Full Time 536,300.00201-7003-50101 100% - Maintenance & Operations Superintendent 100% - Maintenance & Operations Crew Leader 100% - Sr. Maintenance & Operations Worker (2) 100% - Maintenance Worker I (4) Professional Services 3,300.00201-7003-60103 Annual State report and audit requirement Street Striping 20,000.00201-7003-60141 Citywide street striping updates as needed Traffic Control Signs 50,000.00201-7003-60429 Replace street signs as needed and temporary signage for special events Materials/Supplies 40,000.00201-7003-60431 Used to purchase supplies and materials for repairs and maintenance projects that are generally completed by City staff Transfers Out 1,006,705.00201-7003-99900 Amount CIP - Cove Area Slurry Seal Improvements 1,006,705 CITY OF LA QUINTA GAS TAX FUND EXPENSE NOTES FY 2025/26 PROPOSED BUDGET 26 344 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 215 - LIGHTING & LANDSCAPING FUND 7004 - Lighting & Landscaping 50 - Salaries and Benefits 183,574 231,500 231,500 170,544 214,100 (17,400)-8%215-7004-50101 Permanent Full Time 2,161 500 500 14,605 10,000 9,500 1,900%215-7004-50105 Salaries - Overtime 12,290 10,000 10,000 9,330 10,000 0 0%215-7004-50106 Standby 50,759 25,000 25,000 42,773 30,000 5,000 20%215-7004-50107 Standby Overtime 241 0 0 49 0 0 0%215-7004-50150 Other Compensation 14,681 18,100 18,100 13,619 17,000 (1,100)-6%215-7004-50200 PERS-City Portion 3,910 3,900 3,900 2,976 3,900 0 0%215-7004-50215 Other Fringe Benefits 62,456 83,500 83,500 47,432 81,800 (1,700)-2%215-7004-50221 Medical Insurance 506 0 0 386 0 0 0%215-7004-50222 Vision Insurance 2,543 0 0 2,207 0 0 0%215-7004-50223 Dental Insurance 197 0 0 155 0 0 0%215-7004-50224 Life Insurance 1,121 1,700 1,700 1,486 1,400 (300)-18%215-7004-50225 Long Term Disability 14,300 14,300 14,300 10,725 14,700 400 3%215-7004-50230 Workers Comp Insurance 3,921 3,300 3,300 3,520 3,100 (200)-6%215-7004-50240 Social Security-Medicare 1,301 0 0 0 0 0 0%215-7004-50241 Social Security-FICA 21,070 0 0 4,536 0 0 0%215-7004-50251 Temporary 50 - Salaries and Benefits Totals:375,032 391,800 391,800 324,343 386,000 (5,800)-1% 60 - Contract Services 15,231 15,500 15,500 10,717 15,500 0 0%215-7004-60102 Administration 77,861 80,000 80,000 59,945 84,000 4,000 5%215-7004-60104 Consultants 897,576 1,570,000 1,570,000 1,295,406 1,645,500 75,500 5%215-7004-60112 Landscape Contract 66,304 82,000 82,000 56,710 87,000 5,000 6%215-7004-60143 SilverRock Way Landscape 60 - Contract Services Totals:1,056,972 1,747,500 1,747,500 1,422,779 1,832,000 84,500 5% 62 - Maintenance & Operations 0 4,500 4,500 2,395 4,500 0 0%215-7004-60320 Travel & Training 3,899 15,000 15,000 2,999 15,000 0 0%215-7004-60420 Operating Supplies 687 10,000 10,000 0 10,000 0 0%215-7004-60423 Supplies-Graffiti and Vandalism 2,724 2,500 2,500 1,278 3,000 500 20%215-7004-60427 Safety Gear 245,782 500,000 625,000 495,041 550,000 (75,000)-12%215-7004-60431 Materials/Supplies 2,223 3,000 3,000 4,705 4,000 1,000 33%215-7004-60432 Tools/Equipment 21,670 500,000 950,000 230,091 60,000 (890,000)-94%215-7004-60673 Tree Maintenance/Palm Trees 2,680 3,500 3,500 1,499 3,500 0 0%215-7004-60690 Uniforms 444,910 300,000 300,000 399,672 400,000 100,000 33%215-7004-60691 Maintenance/Services 62 - Maintenance & Operations Totals:724,577 1,338,500 1,913,500 1,137,680 1,050,000 (863,500)-45% 66 - Utilities 98,062 80,000 80,000 83,837 92,000 12,000 15%215-7004-61116 Electric - Utilities 37,403 40,000 40,000 32,475 49,000 9,000 23%215-7004-61117 Electric - Medians - Utilities 254,338 215,000 215,000 221,945 250,000 35,000 16%215-7004-61211 Water - Medians - Utilities 66 - Utilities Totals:389,803 335,000 335,000 338,257 391,000 56,000 17% 183,574 231,500 231,500 170,544 214,100 (17,400) 2,161 500 500 14,605 10,000 9,500 12,290 10,000 10,000 9,330 10,000 0 50,759 25,000 25,000 42,773 30,000 5,000 241 0 0 49 0 0 14,681 18,100 18,100 13,619 17,000 (1,100) 3,910 3,900 3,900 2,976 3,900 0 62,456 83,500 83,500 47,432 81,800 (1,700) 506 0 0 386 0 0 2,543 0 0 2,207 0 0 197 0 0 155 0 0 1,121 1,700 1,700 1,486 1,400 (300) 14,300 14,300 14,300 10,725 14,700 400 3,921 3,300 3,300 3,520 3,100 (200) 1,301 0 0 0 0 0 21,070 0 0 4,536 0 0 375,032 391,800 391,800 324,343 386,000 (5,800) 15,231 15,500 15,500 10,717 15,500 0 77,861 80,000 80,000 59,945 84,000 4,000 897,576 1,570,000 1,570,000 1,295,406 1,645,500 75,500 66,304 82,000 82,000 56,710 87,000 5,000 1,056,972 1,747,500 1,747,500 1,422,779 1,832,000 84,500 0 4,500 4,500 2,395 4,500 0 3,899 15,000 15,000 2,999 15,000 0 687 10,000 10,000 0 10,000 0 2,724 2,500 2,500 1,278 3,000 500 245,782 500,000 625,000 495,041 550,000 (75,000) 2,223 3,000 3,000 4,705 4,000 1,000 21,670 500,000 950,000 230,091 60,000 (890,000) 2,680 3,500 3,500 1,499 3,500 0 444,910 300,000 300,000 399,672 400,000 100,000 724,577 1,338,500 1,913,500 1,137,680 1,050,000 (863,500) 98,062 80,000 80,000 83,837 92,000 12,000 37,403 40,000 40,000 32,475 49,000 9,000 254,338 215,000 215,000 221,945 250,000 35,000 389,803 335,000 335,000 338,257 391,000 56,000 CITY OF LA QUINTA LIGHTING & LANDSCAPING EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 27 345 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 69 - Internal Service Charges 86,600 86,600 86,600 64,950 87,000 400 0%215-7004-98110 Information Tech Charges 58,300 58,300 58,300 43,725 62,000 3,700 6%215-7004-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:144,900 144,900 144,900 108,675 149,000 4,100 3% 7004 - Lighting & Landscaping Totals:2,691,283 3,957,700 4,532,700 3,331,734 3,808,000 (724,700)-16% 215 - LIGHTING & LANDSCAPING FUND Totals:2,691,283 3,957,700 4,532,700 3,331,734 3,808,000 (724,700)-16% 86,600 86,600 86,600 64,950 87,000 400 58,300 58,300 58,300 43,725 62,000 3,700 144,900 144,900 144,900 108,675 149,000 4,100 2,691,283 3,957,700 4,532,700 3,331,734 3,808,000 (724,700) 2,691,283 3,957,700 4,532,700 3,331,734 3,808,000 (724,700) CITY OF LA QUINTA LIGHTING & LANDSCAPING EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 28 346 Fund: 215 - LIGHTING & LANDSCAPING FUND Permanent Full Time 214,100.00215-7004-50101 50% - Maintenance & Operations Superintendent (50% Parks Maintenance) 50% - Maintenance & Operations Crew Leader (50% Parks Maintenance) 50% - Sr. Maintenance & Operations Worker (50% Parks Maintenance) 50% - Maintenance & Operations Worker (3) (50% Parks Maintenance) Administration 15,500.00215-7004-60102 Annual required report for LLD Consultants 84,000.00215-7004-60104 Lighting contract Landscape Contract 1,645,500.00215-7004-60112 Citywide landscape contract Travel & Training 4,500.00215-7004-60320 Safety training Materials/Supplies 550,000.00215-7004-60431 Median landscape improvements and turf removal $500,000 approved as part of the 5-year CIP Program Tools/Equipment 4,000.00215-7004-60432 Used for all tools and equipment (other than capital expenditures) including small hand tools and/or power tools such as drills, blowers, saws, etc. CITY OF LA QUINTA LIGHTING & LANDSCAPING FUND EXPENSE NOTES FY 2025/26 PROPOSED BUDGETEXHIBIT A 29 347 Housing Fund Revenues 2024/25 Original 2024/25 Current Variance Original vs. Current 2025/26 Proposed Variance Current vs. Adopted % Change 241 - Housing Authority 1,452,000 1,452,000 -1,666,000 214,000 15% 243 - RDA Low-Mod Housing 60,000 60,000 -130,000 70,000 117% 249 - SA 2011 Low/Mod Bond 18,000 18,000 -86,000 68,000 378% Total Revenues 1,530,000 1,530,000 - 1,882,000 352,000 23% RDA Loan Repayment 701,163 701,163 - 715,187 14,024 Total Operating Revenues 2,231,163 2,231,163 - 2,597,187 366,024 Housing Fund Expenditures 2024/25 Original 2024/25 Current Variance Original vs. Current 2025/26 Proposed Variance Current vs. Adopted % Change 241 - Housing Authority 1,715,440 1,965,440 (300,660) 1,664,780 (300,660) -15% 243 - RDA Low-Mod Housing 250,000 350,000 (25,000) 325,000 (25,000) -7% 249 - SA 2011 Low/Mod Bond 250,000 657,003 (507,003) 150,000 (507,003) -77% Total Expenditures 2,215,440 2,972,443 (832,663) 2,139,780 (832,663) -28% Budget Surplus/(Deficit)15,723 (741,280) 832,663 457,407 HOUSING AUTHORITY 2025/26 BUDGET SUMMARY CITY OF LA QUINTA FY 2025/26 PROPOSED BUDGET 30 348 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 241 - HOUSING AUTHORITY 9101 - Housing Authority - Admin 340 - Charges for Services 526 0 0 0 0 0 0%241-9101-42301 Miscellaneous Revenue 340 - Charges for Services Totals:526 0 0 0 0 0 0% 360 - Use of Money & Property 416,365 200,000 200,000 90,244 365,000 165,000 83%241-9101-41900 Allocated Interest 165,958 0 0 0 0 0 0%241-9101-41910 GASB 31 Interest 0 1,000 1,000 0 0 (1,000)-100%241-9101-41915 Non-Allocated Interest 80,124 0 0 0 0 0 0%241-9101-42706 Loan Repayments 148,869 100,000 100,000 11,300 100,000 0 0%241-9101-43504 2nd Trust Deed Repayments 118,416 0 0 0 0 0 0%241-9101-45000 Sale of Other Assets 360 - Use of Money & Property Totals:929,732 301,000 301,000 101,544 465,000 164,000 54% 9101 - Housing Authority - Admin Totals:930,258 301,000 301,000 101,544 465,000 164,000 54% 9103 - Housing Authority - LQRP 360 - Use of Money & Property 200,000 0 0 0 0 0 0%241-9103-43501 Miscellaneous Revenue/LQRP 351,454 350,000 350,000 247,958 350,000 0 0%241-9103-43502 Rent Revenue/LQRP 360 - Use of Money & Property Totals:551,454 350,000 350,000 247,958 350,000 0 0% 9103 - Housing Authority - LQRP Totals:551,454 350,000 350,000 247,958 350,000 0 0% 9104 - Dune Palms Mobile Estates 360 - Use of Money & Property 791,622 800,000 800,000 662,797 850,000 50,000 6%241-9104-42112 Rent Revenue/Tenant/Dune Palms 0 1,000 1,000 0 1,000 0 0%241-9104-42302 Miscellaneous Revenue/Dune Palms 360 - Use of Money & Property Totals:791,622 801,000 801,000 662,797 851,000 50,000 6% 9104 - Dune Palms Mobile Estates Totals:791,622 801,000 801,000 662,797 851,000 50,000 6% 241 - HOUSING AUTHORITY Totals:2,273,334 1,452,000 1,452,000 1,012,299 1,666,000 214,000 15% 243 - RDA LOW-MOD HOUSING FUND 0000 - Undesignated 360 - Use of Money & Property 143,666 60,000 60,000 31,085 130,000 70,000 117%243-0000-41900 Allocated Interest 45,354 0 0 0 0 0 0%243-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:189,020 60,000 60,000 31,085 130,000 70,000 117% 370 - Miscellaneous 68,161 0 0 0 0 0 0%243-0000-48500 Extraordinary Gain 370 - Miscellaneous Totals:68,161 0 0 0 0 0 0% 0000 - Undesignated Totals:257,181 60,000 60,000 31,085 130,000 70,000 117% 24243 - RDA LOW-MOD HOUSING FUND Totals:257,181 60,000 60,000 31,085 130,000 70,000 117% 526 0 0 0 0 0 526 0 0 0 0 0 416,365 200,000 200,000 90,244 365,000 165,000 165,958 0 0 0 0 0 0 1,000 1,000 0 0 (1,000) 80,124 0 0 0 0 0 148,869 100,000 100,000 11,300 100,000 0 118,416 0 0 0 0 0 929,732 301,000 301,000 101,544 465,000 164,000 930,258 301,000 301,000 101,544 465,000 164,000 200,000 0 0 0 0 0 351,454 350,000 350,000 247,958 350,000 0 551,454 350,000 350,000 247,958 350,000 0 551,454 350,000 350,000 247,958 350,000 0 791,622 800,000 800,000 662,797 850,000 50,000 0 1,000 1,000 0 1,000 0 791,622 801,000 801,000 662,797 851,000 50,000 791,622 801,000 801,000 662,797 851,000 50,000 2,273,334 1,452,000 1,452,000 1,012,299 1,666,000 214,000 143,666 60,000 60,000 31,085 130,000 70,000 45,354 0 0 0 0 0 189,020 60,000 60,000 31,085 130,000 70,000 68,161 0 0 0 0 0 68,161 0 0 0 0 0 257,181 60,000 60,000 31,085 130,000 70,000 257,181 60,000 60,000 31,085 130,000 70,000 CITY OF LA QUINTA HOUSING AUTHORITY REVENUE DETAIL FY 2025/26 PROPOSED BUDGET 31 349 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 249 - SA 2011 LOW/MOD BOND FUND financed in 2016) 0000 - Undesignated 340 - Charges for Services 0 0 0 4,483 0 0 0%249-0000-42301 Miscellaneous Revenue 340 - Charges for Services Totals:0 0 0 4,483 0 0 0% 360 - Use of Money & Property 4,616 3,000 3,000 0 0 (3,000)-100%249-0000-41900 Allocated Interest 23,261 0 0 0 0 0 0%249-0000-41910 GASB 31 Interest 86,083 15,000 15,000 75,125 86,000 71,000 473%249-0000-41915 Non-Allocated Interest 360 - Use of Money & Property Totals:113,960 18,000 18,000 75,125 86,000 68,000 378% 390 - Other Financing Sources 1,387,009 0 0 0 0 0 0%249-0000-49500 Transfers In 390 - Other Financing Sources Totals:1,387,009 0 0 0 0 0 0% 0000 - Undesignated Totals:1,500,969 18,000 18,000 79,607 86,000 68,000 378% 249 - SA 2011 LOW/MO249 BOND FUND (Refinanced in 2016) Totals:1,500,969 18,000 18,000 79,607 86,000 68,000 378% 0 0 0 4,483 0 0 0 0 0 4,483 0 0 4,616 3,000 3,000 0 0 (3,000) 23,261 0 0 0 0 0 86,083 15,000 15,000 75,125 86,000 71,000 113,960 18,000 18,000 75,125 86,000 68,000 1,387,009 0 0 0 0 0 1,387,009 0 0 0 0 0 1,500,969 18,000 18,000 79,607 86,000 68,000 1,500,969 18,000 18,000 79,607 86,000 68,000 CITY OF LA QUINTA HOUSING AUTHORITY REVENUE DETAIL FY 2025/26 PROPOSED BUDGET The Housing Authority budget invests in programs and projects that preserve and increase the supply of affordable housing in the City. 241 Housing Authority Fund: Second Trust Deed Payments and Home Sale Proceeds vary from year-to-year. Additional repayment of silent second trust deeds are recognized upon receipt. 241-9101-45000, Sale of Other Assets revenues in FY 2023/24 reflect the purchase and sale agreement between the City of La Quinta and the La Quinta Housing Authority for vacant parcels to be used for future low/moderate affordable housing. 243 RDA Low-Mod Housing Fund: The 2025/26 former Redevelopment Agency loan repayment of $715,187 will be recognized in reserves within this Fund. 249 Successor Agency (SA) 2011 Low/Mod Bund Fund: In FY 2023/24, fund was used for the acquisition of the vacant property located west of the Home Depot Center on Highway 111, on the northeast corner of Highway 111 and Dune Palms Road proposed to be developed as an affordable housing development with a connecting thoroughfare to CV Link. Remaining bond funds continue to earn interest and are available for future housing projects. 32 350 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 241 - HOUSING AUTHORITY 9101 - Housing Authority - Admin 50 - Salaries and Benefits 308,362 322,000 322,000 299,614 328,800 6,800 2%241-9101-50101 Permanent Full Time 58 0 0 111 0 0 0%241-9101-50105 Salaries - Overtime 500 1,800 1,800 450 1,800 0 0%241-9101-50110 Commissions & Boards 145 200 200 125 200 0 0%241-9101-50150 Other Compensation 27,150 31,200 31,200 26,454 30,400 (800)-3%241-9101-50200 PERS-City Portion 4,875 3,640 3,640 8,955 9,380 5,740 158%241-9101-50215 Other Fringe Benefits 53,229 70,000 70,000 46,186 70,900 900 1%241-9101-50221 Medical Insurance 455 0 0 399 0 0 0%241-9101-50222 Vision Insurance 2,747 0 0 2,225 0 0 0%241-9101-50223 Dental Insurance 175 0 0 158 0 0 0%241-9101-50224 Life Insurance 1,764 2,000 2,000 1,831 2,100 100 5%241-9101-50225 Long Term Disability 13,400 13,400 13,400 10,050 13,700 300 2%241-9101-50230 Workers Comp Insurance 4,479 4,800 4,800 4,353 4,800 0 0%241-9101-50240 Social Security-Medicare 56 0 0 59 0 0 0%241-9101-50241 Social Security-FICA 50 - Salaries and Benefits Totals:417,394 449,040 449,040 400,970 462,080 13,040 3% 60 - Contract Services 75,228 75,000 75,000 78,397 110,000 35,000 47%241-9101-60103 Professional Services 5,000 5,000 5,000 0 5,000 0 0%241-9101-60106 Auditors 33,905 25,000 25,000 26,538 25,000 0 0%241-9101-60153 Attorney 200,000 0 0 0 0 0 0%241-9101-60157 Rental Expenses 60 - Contract Services Totals:314,133 105,000 105,000 104,935 140,000 35,000 33% 62 - Maintenance & Operations 467 1,000 1,000 0 1,000 0 0%241-9101-60320 Travel & Training 734 2,000 2,000 987 2,000 0 0%241-9101-60420 Operating Supplies 62 - Maintenance & Operations Totals:1,201 3,000 3,000 987 3,000 0 0% 69 - Internal Service Charges 9,300 9,300 9,300 6,975 9,700 400 4%241-9101-91843 Property & Crime Insurance 18,200 18,200 18,200 13,650 18,700 500 3%241-9101-91844 Earthquake Insurance 80,900 80,900 80,900 60,675 81,300 400 0%241-9101-98110 Information Tech Charges 69 - Internal Service Charges Totals:108,400 108,400 108,400 81,300 109,700 1,300 1% 9101 - Housing Authority - Admin Totals:841,128 665,440 665,440 588,192 714,780 49,340 7% 9103 - Housing Authority - LQRP 62 - Maintenance & Operations 379,320 350,000 350,000 210,512 350,000 0 0%241-9103-60157 Rental Expenses 62 - Maintenance & Operations Totals:379,320 350,000 350,000 210,512 350,000 0 0% 9103 - Housing Authority - LQRP Totals:379,320 350,000 350,000 210,512 350,000 0 0% 308,362 322,000 322,000 299,614 328,800 6,800 58 0 0 111 0 0 500 1,800 1,800 450 1,800 0 145 200 200 125 200 0 27,150 31,200 31,200 26,454 30,400 (800) 4,875 3,640 3,640 8,955 9,380 5,740 53,229 70,000 70,000 46,186 70,900 900 455 0 0 399 0 0 2,747 0 0 2,225 0 0 175 0 0 158 0 0 1,764 2,000 2,000 1,831 2,100 100 13,400 13,400 13,400 10,050 13,700 300 4,479 4,800 4,800 4,353 4,800 0 56 0 0 59 0 0 417,394 449,040 449,040 400,970 462,080 13,040 75,228 75,000 75,000 78,397 110,000 35,000 5,000 5,000 5,000 0 5,000 0 33,905 25,000 25,000 26,538 25,000 0 200,000 0 0 0 0 0 314,133 105,000 105,000 104,935 140,000 35,000 467 1,000 1,000 0 1,000 0 734 2,000 2,000 987 2,000 0 1,201 3,000 3,000 987 3,000 0 9,300 9,300 9,300 6,975 9,700 400 18,200 18,200 18,200 13,650 18,700 500 80,900 80,900 80,900 60,675 81,300 400 108,400 108,400 108,400 81,300 109,700 1,300 841,128 665,440 665,440 588,192 714,780 49,340 379,320 350,000 350,000 210,512 350,000 0 379,320 350,000 350,000 210,512 350,000 0 379,320 350,000 350,000 210,512 350,000 0 CITY OF LA QUINTA HOUSING AUTHORITY EXPENSE DETAILS FY 2025/26 PROPOSED BUDGET 33 351 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 9104 - Dune Palms Mobile Estates 60 - Contract Services 116,883 100,000 100,000 84,300 100,000 0 0%241-9104-60103 Professional Services 428,068 400,000 400,000 333,370 400,000 0 0%241-9104-60157 Rental Expense 0 0 0 2,381 0 0 0%241-9104-60159 Relocation/Temp Housing 60 - Contract Services Totals:544,952 500,000 500,000 420,052 500,000 0 0% 68 - Capital Expenses 99,064 200,000 450,000 10,716 100,000 (350,000)-78%241-9104-72110 Building/Site Improvements 68 - Capital Expenses Totals:99,064 200,000 450,000 10,716 100,000 (350,000)-78% 9104 - Dune Palms Mobile Estates Totals:644,015 700,000 950,000 430,768 600,000 (350,000)-37% 241 - HOUSING AUTHORITY Totals:1,864,463 1,715,440 1,965,440 1,229,471 1,664,780 (300,660)-15% 116,883 100,000 100,000 84,300 100,000 0 428,068 400,000 400,000 333,370 400,000 0 0 0 0 2,381 0 0 544,952 500,000 500,000 420,052 500,000 0 99,064 200,000 450,000 10,716 100,000 (350,000) 99,064 200,000 450,000 10,716 100,000 (350,000) 644,015 700,000 950,000 430,768 600,000 (350,000) 1,864,463 1,715,440 1,965,440 1,229,471 1,664,780 (300,660) CITY OF LA QUINTA HOUSING AUTHORITY EXPENSE DETAILS FY 2025/26 PROPOSED BUDGET 241 Housing Authority Fund: These funds are used to account for the housing activities of the Housing Authority which are to promote and provide quality affordable housing. 34 352 Fund: 241 - HOUSING AUTHORITY Permanent Full Time 328,800.00241-9101-50101 20% - City Manager (80% City Manager) 10% - Finance Director (90% Finance) 10% - City Clerk Director (90% City Clerk) 40% - Director- Business Unit & Housing Development (60% City Manager) 60% - Sr. Management Analyst (40% Information Technology Fund) 60% - Management Specialist (40% City Manager) 80% - Administrative Techniciant (20% City Manager) Housing Authority Member Stipends (5) Housing Commissioner Stipends Professional Services 110,000.00241-9101-60103 Housing compliance services Travel & Training 1,000.00241-9101-60320 For housing related training and staff development Rental Expenses 350,000.00241-9103-60157 Expenses associated with 28 homes owned by the Authority which are located in the La Quinta Cove Professional Services 100,000.00241-9104-60103 For residential property management services at Dune Palms Mobile Estates Rental Expense 400,000.00241-9104-60157 Expenses associated with 102 units owned by the Authority which are located in North La Quinta CITY OF LA QUINTA HOUSING AUTHORITY EXPENSE NOTES FY 2025/26 PROPOSED BUDGET 35 353 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 243 - RDA LOW-MOD HOUSING FUND 0000 - Undesignated 64 - Other Expenses 250,000 250,000 350,000 300,800 325,000 (25,000)-7%243-0000-60532 Homelessness Assistance 64 - Other Expenses Totals:250,000 250,000 350,000 300,800 325,000 (25,000)-7% 0000 - Undesignated Totals:250,000 250,000 350,000 300,800 325,000 (25,000)-7% 24243 - RDA LOW-MOD HOUSING FUND Totals:250,000 250,000 350,000 300,800 325,000 (25,000)-7% 250,000 250,000 350,000 300,800 325,000 (25,000) 250,000 250,000 350,000 300,800 325,000 (25,000) 250,000 250,000 350,000 300,800 325,000 (25,000) 250,000 250,000 350,000 300,800 325,000 (25,000) CITY OF LA QUINTA HOUSING AUTHORITY EXPENSE DETAILS FY 2025/26 PROPOSED BUDGET 243 RDA Low-Mod Housing Fund: The 2025/26 former Redevelopment Agency loan repayment of $715,187 will be recognized in reserves within this Fund. These funds are used to account for the housing activities of the Housing Authority which are to promote and provide quality affordable housing. 36 354 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) 0000 - Undesignated 68 - Capital Expenses 3,587,121 0 0 0 0 0 0%249-0000-74010 Land Acquisition 900 250,000 657,003 746,407 150,000 (507,003)-77%249-0000-80050 Affordable Housing Project Development 68 - Capital Expenses Totals:3,588,021 250,000 657,003 746,407 150,000 (507,003)-77% 0000 - Undesignated Totals:3,588,021 250,000 657,003 746,407 150,000 (507,003)-77% 249 - SA 2011 LOW/M249 BOND FUND (Refinanced in 2016) Totals:3,588,021 250,000 657,003 746,407 150,000 (507,003)-77% 3,587,121 0 0 0 0 0 900 250,000 657,003 746,407 150,000 (507,003) 3,588,021 250,000 657,003 746,407 150,000 (507,003) 3,588,021 250,000 657,003 746,407 150,000 (507,003) 3,588,021 250,000 657,003 746,407 150,000 (507,003) CITY OF LA QUINTA HOUSING AUTHORITY EXPENSE DETAILS FY 2025/26 PROPOSED BUDGET 249 Successor Agency Bond Fund: These funds are restricted per individual bond covenants and were used for the acquisition of the vacant propoerty located west of the Home Depot Center on Highway 111, on the northeast corner of Highway 111 and Dune Palms Road. This property is proposed to be developed as an affordable housing development with a connecting thoroughfare to CV Link. Remaining funds are available for future housing projects. For FY 2025/26, budget will be used for investment in design and development of projects. 37 355 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 310 - LQ FINANCE AUTHORITY DEBT SERVICE 0000 - Undesignated 60 - Contract Services 907 1,500 1,500 0 1,000 (500)-33%310-0000-60181 Contract Services Fees 60 - Contract Services Totals:907 1,500 1,500 0 1,000 (500)-33% 0000 - Undesignated Totals:907 1,500 1,500 0 1,000 (500)-33% 310 - LQ FINANCE AUTHORITY DEBT SERVICE Totals:907 1,500 1,500 0 1,000 (500)-33% 907 1,500 1,500 0 1,000 (500) 907 1,500 1,500 0 1,000 (500) 907 1,500 1,500 0 1,000 (500) 907 1,500 1,500 0 1,000 (500) Contract Services fee: Annual State Controller's report and audit requirement CITY OF LA QUINTA FINANCE AUTHORITY EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 38 356 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 601 - SILVERROCK RESORT 0000 - Undesignated 60 - Contract Services 572,143 600,000 600,000 459,646 622,000 22,000 4%601-0000-60200 Cart Barn/Range 375,030 420,000 420,000 364,690 420,000 0 0%601-0000-60201 Golf Shop 2,387,410 2,410,000 2,410,000 2,221,161 2,540,000 130,000 5%601-0000-60203 Maintenance 491,330 520,000 520,000 386,159 563,000 43,000 8%601-0000-60205 General & Administrative 122,671 171,000 171,000 113,071 173,000 2,000 1%601-0000-60206 Marketing 164,902 168,000 168,000 121,074 172,000 4,000 2%601-0000-60207 Temporary Club House 141,078 137,000 137,000 102,933 144,000 7,000 5%601-0000-60208 Management Fee 93,311 55,000 55,000 71,772 91,000 36,000 65%601-0000-60209 Insurance 5,455 15,000 15,000 5,455 6,000 (9,000)-60%601-0000-60210 Property Tax 217,103 421,000 421,000 262,020 354,000 (67,000)-16%601-0000-60211 Rental Payment 6,188 0 0 0 0 0 0%601-0000-60213 Interest Payment 232,947 50,000 50,000 0 40,000 (10,000)-20%601-0000-60217 Food & Beverage 60 - Contract Services Totals:4,809,569 4,967,000 4,967,000 4,107,981 5,125,000 158,000 3% 62 - Maintenance & Operations 0 10,000 10,000 0 5,000 (5,000)-50%601-0000-60214 Equipment Repairs 170,912 150,000 150,000 109,604 150,000 0 0%601-0000-60455 Bank Fees 52,490 150,000 150,000 34,996 150,000 0 0%601-0000-60660 Repair & Maintenance 62 - Maintenance & Operations Totals:223,402 310,000 310,000 144,599 305,000 (5,000)-2% 68 - Capital Expenses 0 0 0 0 0 0 0%601-0000-71030 Vehicles 220,522 0 0 0 0 0 0%601-0000-71122 Depreciation Expense - Community Services 296,922 0 0 0 0 0 0%601-0000-72011 Depreciation Expense 80,162 0 0 65,477 0 0 0%601-0000-80100 Machinery & Equipment 68 - Capital Expenses Totals:597,606 0 0 65,477 0 0 0% 99 - Transfers Out 82,000 88,000 88,000 88,000 87,000 (1,000)-1%601-0000-99900 Transfers Out 99 - Transfers Out Totals:82,000 88,000 88,000 88,000 87,000 (1,000)-1% 0000 - Undesignated Totals:5,712,576 5,365,000 5,365,000 4,406,058 5,517,000 152,000 3% 601 - SILVERROCK RESORT Totals:5,712,576 5,365,000 5,365,000 4,406,058 5,517,000 152,000 3% 572,143 600,000 600,000 459,646 622,000 22,000 375,030 420,000 420,000 364,690 420,000 0 2,387,410 2,410,000 2,410,000 2,221,161 2,540,000 130,000 491,330 520,000 520,000 386,159 563,000 43,000 122,671 171,000 171,000 113,071 173,000 2,000 164,902 168,000 168,000 121,074 172,000 4,000 141,078 137,000 137,000 102,933 144,000 7,000 93,311 55,000 55,000 71,772 91,000 36,000 5,455 15,000 15,000 5,455 6,000 (9,000) 217,103 421,000 421,000 262,020 354,000 (67,000) 6,188 0 0 0 0 0 232,947 50,000 50,000 0 40,000 (10,000) 4,809,569 4,967,000 4,967,000 4,107,981 5,125,000 158,000 0 10,000 10,000 0 5,000 (5,000) 170,912 150,000 150,000 109,604 150,000 0 52,490 150,000 150,000 34,996 150,000 0 223,402 310,000 310,000 144,599 305,000 (5,000) 0 0 0 0 0 0 220,522 0 0 0 0 0 296,922 0 0 0 0 0 80,162 0 0 65,477 0 0 597,606 0 0 65,477 0 0 82,000 88,000 88,000 88,000 87,000 (1,000) 82,000 88,000 88,000 88,000 87,000 (1,000) 5,712,576 5,365,000 5,365,000 4,406,058 5,517,000 152,000 5,712,576 5,365,000 5,365,000 4,406,058 5,517,000 152,000 CITY OF LA QUINTA SILVERROCK RESORT FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 39 357 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 105 - DISASTER RECOVERY FUND 0000 - Undesignated 99 - Transfers Out 0 0 4,993,504 4,993,504 4,993,504 0 0%105-0000-99900 Transfers Out 99 - Transfers Out Totals:0 0 4,993,504 4,993,504 4,993,504 0 0% 0000 - Undesignated Totals:0 0 4,993,504 4,993,504 4,993,504 0 0% 105 - DISASTER RECOVERY FUND Totals:0 0 4,993,504 4,993,504 4,993,504 0 0% 0 0 4,993,504 4,993,504 4,993,504 0 0 0 4,993,504 4,993,504 4,993,504 0 0 0 4,993,504 4,993,504 4,993,504 0 0 0 4,993,504 4,993,504 4,993,504 0 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 40 358 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 203 - PUBLIC SAFETY FUND (MEASURE G) 0000 - Undesignated 99 - Transfers Out 21,312 0 20,376 0 0 (20,376)-100%203-0000-99900 Transfers Out 99 - Transfers Out Totals:21,312 0 20,376 0 0 (20,376)-100% 0000 - Undesignated Totals:21,312 0 20,376 0 0 (20,376)-100% 203 - PUBLIC SAFETY FUND (MEASURE G) Totals:21,312 0 20,376 0 0 (20,376)-100% 21,312 0 20,376 0 0 (20,376) 21,312 0 20,376 0 0 (20,376) 21,312 0 20,376 0 0 (20,376) 21,312 0 20,376 0 0 (20,376) CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 41 359 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 210 - FEDERAL ASSISTANCE FUND 0000 - Undesignated 60 - Contract Services 16,419 23,500 23,500 13,915 24,000 500 2%210-0000-60135 CDBG Public Service Grants 60 - Contract Services Totals:16,419 23,500 23,500 13,915 24,000 500 2% 99 - Transfers Out 355,559 175,000 175,000 0 136,000 (39,000)-22%210-0000-99900 Transfers Out 99 - Transfers Out Totals:355,559 175,000 175,000 0 136,000 (39,000)-22% 0000 - Undesignated Totals:371,978 198,500 198,500 13,915 160,000 (38,500)-19% 210 - FEDERAL ASSISTANCE FUND Totals:371,978 198,500 198,500 13,915 160,000 (38,500)-19% 16,419 23,500 23,500 13,915 24,000 500 16,419 23,500 23,500 13,915 24,000 500 355,559 175,000 175,000 0 136,000 (39,000) 355,559 175,000 175,000 0 136,000 (39,000) 371,978 198,500 198,500 13,915 160,000 (38,500) 371,978 198,500 198,500 13,915 160,000 (38,500) CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 42 360 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 212 - SLESA (COPS) FUND 0000 - Undesignated 60 - Contract Services 51,392 10,000 10,000 8,200 10,000 0 0%212-0000-60178 COPS Robbery Prevention 35,539 90,000 90,000 85,144 90,000 0 0%212-0000-60179 COPS Burglary/Theft Prevention 60 - Contract Services Totals:86,931 100,000 100,000 93,344 100,000 0 0% 0000 - Undesignated Totals:86,931 100,000 100,000 93,344 100,000 0 0% 212 - SLESA (COPS) FUND Totals:86,931 100,000 100,000 93,344 100,000 0 0% 51,392 10,000 10,000 8,200 10,000 0 35,539 90,000 90,000 85,144 90,000 0 86,931 100,000 100,000 93,344 100,000 0 86,931 100,000 100,000 93,344 100,000 0 86,931 100,000 100,000 93,344 100,000 0 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 43 361 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 220 - QUIMBY FUND 0000 - Undesignated 99 - Transfers Out 0 0 262,685 0 0 (262,685)-100%220-0000-99900 Transfers Out 99 - Transfers Out Totals:0 0 262,685 0 0 (262,685)-100% 0000 - Undesignated Totals:0 0 262,685 0 0 (262,685)-100% 220 - QUIMBY FUND Totals:0 0 262,685 0 0 (262,685)-100% 0 0 262,685 0 0 (262,685) 0 0 262,685 0 0 (262,685) 0 0 262,685 0 0 (262,685) 0 0 262,685 0 0 (262,685) CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 44 362 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 221 - AB 939 - CALRECYCLE FUND 0000 - Undesignated 60 - Contract Services 270,646 200,000 200,000 87,478 205,000 5,000 3%221-0000-60127 AB 939 Recycling Solutions 60 - Contract Services Totals:270,646 200,000 200,000 87,478 205,000 5,000 3% 0000 - Undesignated Totals:270,646 200,000 200,000 87,478 205,000 5,000 3% 221 - AB 939 - CALRECYCLE FUND Totals:270,646 200,000 200,000 87,478 205,000 5,000 3% 270,646 200,000 200,000 87,478 205,000 5,000 270,646 200,000 200,000 87,478 205,000 5,000 270,646 200,000 200,000 87,478 205,000 5,000 270,646 200,000 200,000 87,478 205,000 5,000 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 45 363 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 223 - MEASURE A FUND 0000 - Undesignated 64 - Other Expenses 7,806 0 0 0 0 0 0%223-0000-60510 Signal Knockdowns, Contingency 64 - Other Expenses Totals:7,806 0 0 0 0 0 0% 99 - Transfers Out 2,754,523 2,335,000 4,456,986 149,017 1,124,132 (3,332,854)-75%223-0000-99900 Transfers Out 99 - Transfers Out Totals:2,754,523 2,335,000 4,456,986 149,017 1,124,132 (3,332,854) -75% 0000 - Undesignated Totals:2,762,329 2,335,000 4,456,986 149,017 1,124,132 (3,332,854) -75% 223 - MEASURE A FUND Totals:2,762,329 2,335,000 4,456,986 149,017 1,124,132 (3,332,854) -75% 7,806 0 0 0 0 0 7,806 0 0 0 0 0 2,754,523 2,335,000 4,456,986 149,017 1,124,132 (3,332,854) 2,754,523 2,335,000 4,456,986 149,017 1,124,132 (3,332,854) 2,762,329 2,335,000 4,456,986 149,017 1,124,132 (3,332,854) 2,762,329 2,335,000 4,456,986 149,017 1,124,132 (3,332,854) CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 46 364 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG) 0000 - Undesignated 62 - Maintenance & Operations 9,950 12,000 12,000 11,373 10,000 (2,000)-17%226-0000-60432 Tools/Equipment 62 - Maintenance & Operations Totals:9,950 12,000 12,000 11,373 10,000 (2,000)-17% 0000 - Undesignated Totals:9,950 12,000 12,000 11,373 10,000 (2,000)-17% 226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG) Totals:9,950 12,000 12,000 11,373 10,000 (2,000)-17% 9,950 12,000 12,000 11,373 10,000 (2,000) 9,950 12,000 12,000 11,373 10,000 (2,000) 9,950 12,000 12,000 11,373 10,000 (2,000) 9,950 12,000 12,000 11,373 10,000 (2,000) CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 47 365 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP) 0000 - Undesignated 60 - Contract Services 3,936 5,000 5,000 4,204 5,000 0 0%227-0000-60320 Travel & Training 60 - Contract Services Totals:3,936 5,000 5,000 4,204 5,000 0 0% 0000 - Undesignated Totals:3,936 5,000 5,000 4,204 5,000 0 0% 227 - STATE HOMELAND SECURITY PROGRAMS (SHSP) Totals:3,936 5,000 5,000 4,204 5,000 0 0% 3,936 5,000 5,000 4,204 5,000 0 3,936 5,000 5,000 4,204 5,000 0 3,936 5,000 5,000 4,204 5,000 0 3,936 5,000 5,000 4,204 5,000 0 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 48 366 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 230 - CASp FUND, AB 1379 0000 - Undesignated 60 - Contract Services 0 2,500 2,500 0 2,500 0 0%230-0000-60320 Travel & Training 60 - Contract Services Totals:0 2,500 2,500 0 2,500 0 0% 64 - Other Expenses 1,574 2,000 2,000 1,312 2,000 0 0%230-0000-60480 Contributions to State Agency 64 - Other Expenses Totals:1,574 2,000 2,000 1,312 2,000 0 0% 68 - Capital Expenses 0 1,000 1,000 0 1,000 0 0%230-0000-90020 Service & Supply 68 - Capital Expenses Totals:0 1,000 1,000 0 1,000 0 0% 0000 - Undesignated Totals:1,574 5,500 5,500 1,312 5,500 0 0% 230 - CASp FUND, AB 1379 Totals:1,574 5,500 5,500 1,312 5,500 0 0% 0 2,500 2,500 0 2,500 0 0 2,500 2,500 0 2,500 0 1,574 2,000 2,000 1,312 2,000 0 1,574 2,000 2,000 1,312 2,000 0 0 1,000 1,000 0 1,000 0 0 1,000 1,000 0 1,000 0 1,574 5,500 5,500 1,312 5,500 0 1,574 5,500 5,500 1,312 5,500 0 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 49 367 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 235 - SO COAST AIR QUALITY FUND 0000 - Undesignated 60 - Contract Services 38,315 40,000 40,000 9,785 40,000 0 0%235-0000-60186 CVAG 60 - Contract Services Totals:38,315 40,000 40,000 9,785 40,000 0 0% 66 - Utilities 0 0 0 4,203 0 0 0%235-0000-61101 Electricity - Utilities 66 - Utilities Totals:0 0 0 4,203 0 0 0% 0000 - Undesignated Totals:38,315 40,000 40,000 13,988 40,000 0 0% 235 - SO COAST AIR QUALITY FUND Totals:38,315 40,000 40,000 13,988 40,000 0 0% 38,315 40,000 40,000 9,785 40,000 0 38,315 40,000 40,000 9,785 40,000 0 0 0 0 4,203 0 0 0 0 0 4,203 0 0 38,315 40,000 40,000 13,988 40,000 0 38,315 40,000 40,000 13,988 40,000 0 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 50 368 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 247 - ECONOMIC DEVELOPMENT FUND 0000 - Undesignated 60 - Contract Services 3,861 6,500 6,500 1,110 6,500 0 0%247-0000-60320 Travel & Training 1,850 5,000 5,000 1,650 5,000 0 0%247-0000-60351 Membership Dues 60 - Contract Services Totals:5,711 11,500 11,500 2,760 11,500 0 0% 64 - Other Expenses 16,632 20,000 20,000 2,411 20,000 0 0%247-0000-60461 Marketing & Tourism Promotions 64 - Other Expenses Totals:16,632 20,000 20,000 2,411 20,000 0 0% 0000 - Undesignated Totals:22,343 31,500 31,500 5,171 31,500 0 0% 247 - ECONOMIC DEVELOPMENT FUND Totals:22,343 31,500 31,500 5,171 31,500 0 0% 3,861 6,500 6,500 1,110 6,500 0 1,850 5,000 5,000 1,650 5,000 0 5,711 11,500 11,500 2,760 11,500 0 16,632 20,000 20,000 2,411 20,000 0 16,632 20,000 20,000 2,411 20,000 0 22,343 31,500 31,500 5,171 31,500 0 22,343 31,500 31,500 5,171 31,500 0 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 51 369 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 250 - TRANSPORTATION DIF FUND 0000 - Undesignated 68 - Capital Expenses 400,000 400,000 400,000 400,000 400,000 0 0%250-0000-80105 Developer Reimbursements 68 - Capital Expenses Totals:400,000 400,000 400,000 400,000 400,000 0 0% 99 - Transfers Out 12,267 1,179,109 2,437,567 454 579,109 (1,858,458)-76%250-0000-99900 Transfers Out 99 - Transfers Out Totals:12,267 1,179,109 2,437,567 454 579,109 (1,858,458) -76% 0000 - Undesignated Totals:412,267 1,579,109 2,837,567 400,454 979,109 (1,858,458) -65% 250 - TRANSPORTATION DIF FUND Totals:412,267 1,579,109 2,837,567 400,454 979,109 (1,858,458) -65% 400,000 400,000 400,000 400,000 400,000 0 400,000 400,000 400,000 400,000 400,000 0 12,267 1,179,109 2,437,567 454 579,109 (1,858,458) 12,267 1,179,109 2,437,567 454 579,109 (1,858,458) 412,267 1,579,109 2,837,567 400,454 979,109 (1,858,458) 412,267 1,579,109 2,837,567 400,454 979,109 (1,858,458) CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 52 370 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 251 - PARKS & REC DIF FUND 0000 - Undesignated 99 - Transfers Out 277,670 0 843,615 62,573 0 (843,615)-100%251-0000-99900 Transfers Out 99 - Transfers Out Totals:277,670 0 843,615 62,573 0 (843,615)-100% 0000 - Undesignated Totals:277,670 0 843,615 62,573 0 (843,615)-100% 251 - PARKS & REC DIF FUND Totals:277,670 0 843,615 62,573 0 (843,615)-100% 277,670 0 843,615 62,573 0 (843,615) 277,670 0 843,615 62,573 0 (843,615) 277,670 0 843,615 62,573 0 (843,615) 277,670 0 843,615 62,573 0 (843,615) CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 53 371 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 252 - CIVIC CENTER DIF FUND 0000 - Undesignated 99 - Transfers Out 0 0 249,925 0 0 (249,925)-100%252-0000-99900 Transfers Out 99 - Transfers Out Totals:0 0 249,925 0 0 (249,925)-100% 0000 - Undesignated Totals:0 0 249,925 0 0 (249,925)-100% 252 - CIVIC CENTER DIF FUND Totals:0 0 249,925 0 0 (249,925)-100% 0 0 249,925 0 0 (249,925) 0 0 249,925 0 0 (249,925) 0 0 249,925 0 0 (249,925) 0 0 249,925 0 0 (249,925) CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 54 372 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 253 - LIBRARY DEVELOPMENT DIF 0000 - Undesignated 68 - Capital Expenses 32,495 15,000 15,000 5,617 15,000 0 0%253-0000-83500 Advance Interest Expense 68 - Capital Expenses Totals:32,495 15,000 15,000 5,617 15,000 0 0% 0000 - Undesignated Totals:32,495 15,000 15,000 5,617 15,000 0 0% 253 - LIBRARY DEVELOPMENT DIF Totals:32,495 15,000 15,000 5,617 15,000 0 0% 32,495 15,000 15,000 5,617 15,000 0 32,495 15,000 15,000 5,617 15,000 0 32,495 15,000 15,000 5,617 15,000 0 32,495 15,000 15,000 5,617 15,000 0 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 55 373 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 254 - COMMUNITY & CULTURAL CENTERS DIF 0000 - Undesignated 99 - Transfers Out 0 500,000 625,000 0 482,561 (142,439)-23%254-0000-99900 Transfers Out 99 - Transfers Out Totals:0 500,000 625,000 0 482,561 (142,439)-23% 0000 - Undesignated Totals:0 500,000 625,000 0 482,561 (142,439)-23% 254 - COMMUNITY & CULTURAL CENTERS DIF Totals:0 500,000 625,000 0 482,561 (142,439)-23% 0 500,000 625,000 0 482,561 (142,439) 0 500,000 625,000 0 482,561 (142,439) 0 500,000 625,000 0 482,561 (142,439) 0 500,000 625,000 0 482,561 (142,439) CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 56 374 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 259 - MAINTENANCE FACILITIES DIF FUND 0000 - Undesignated 99 - Transfers Out 0 100,000 280,000 0 362,526 82,526 29%259-0000-99900 Transfers Out 99 - Transfers Out Totals:0 100,000 280,000 0 362,526 82,526 29% 0000 - Undesignated Totals:0 100,000 280,000 0 362,526 82,526 29% 259 - MAINTENANCE FACILITIES DIF FUND Totals:0 100,000 280,000 0 362,526 82,526 29% 0 100,000 280,000 0 362,526 82,526 0 100,000 280,000 0 362,526 82,526 0 100,000 280,000 0 362,526 82,526 0 100,000 280,000 0 362,526 82,526 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 57 375 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 270 - ART IN PUBLIC PLACES FUND 0000 - Undesignated 64 - Other Expenses 4,947 8,000 8,000 966 8,000 0 0%270-0000-60482 Operating Supplies 64 - Other Expenses Totals:4,947 8,000 8,000 966 8,000 0 0% 65 - Repair & Maintenance 57,798 75,000 75,000 72,757 75,000 0 0%270-0000-60683 APP Maintenance & Display 65 - Repair & Maintenance Totals:57,798 75,000 75,000 72,757 75,000 0 0% 68 - Capital Expenses 57,549 150,000 150,000 43,900 150,000 0 0%270-0000-74800 Art Purchases 68 - Capital Expenses Totals:57,549 150,000 150,000 43,900 150,000 0 0% 99 - Transfers Out 912 0 508,799 2,050 0 (508,799)-100%270-0000-99900 Transfers Out 99 - Transfers Out Totals:912 0 508,799 2,050 0 (508,799)-100% 0000 - Undesignated Totals:121,206 233,000 741,799 119,673 233,000 (508,799)-69% 270 - ART IN PUBLIC PLACES FUND Totals:121,206 233,000 741,799 119,673 233,000 (508,799)-69% 4,947 8,000 8,000 966 8,000 0 4,947 8,000 8,000 966 8,000 0 57,798 75,000 75,000 72,757 75,000 0 57,798 75,000 75,000 72,757 75,000 0 57,549 150,000 150,000 43,900 150,000 0 57,549 150,000 150,000 43,900 150,000 0 912 0 508,799 2,050 0 (508,799) 912 0 508,799 2,050 0 (508,799) 121,206 233,000 741,799 119,673 233,000 (508,799) 121,206 233,000 741,799 119,673 233,000 (508,799) CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 58 376 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 760 - SUPPLEMENTAL PENSION PLAN 0000 - Undesignated 50 - Salaries and Benefits 12,833 12,850 12,850 12,833 12,850 0 0%760-0000-50199 Annual PARS Contribution 50 - Salaries and Benefits Totals:12,833 12,850 12,850 12,833 12,850 0 0% 0000 - Undesignated Totals:12,833 12,850 12,850 12,833 12,850 0 0% 760 - SUPPLEMENTAL PENSION PLAN Totals:12,833 12,850 12,850 12,833 12,850 0 0% 12,833 12,850 12,850 12,833 12,850 0 12,833 12,850 12,850 12,833 12,850 0 12,833 12,850 12,850 12,833 12,850 0 12,833 12,850 12,850 12,833 12,850 0 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 59 377 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 761 - CERBT OPEB TRUST 0000 - Undesignated 60 - Contract Services 1,612 1,500 1,500 1,184 1,500 0 0%761-0000-60102 Administration 60 - Contract Services Totals:1,612 1,500 1,500 1,184 1,500 0 0% 0000 - Undesignated Totals:1,612 1,500 1,500 1,184 1,500 0 0% 761 - CERBT OPEB TRUST Totals:1,612 1,500 1,500 1,184 1,500 0 0% 1,612 1,500 1,500 1,184 1,500 0 1,612 1,500 1,500 1,184 1,500 0 1,612 1,500 1,500 1,184 1,500 0 1,612 1,500 1,500 1,184 1,500 0 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 60 378 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 762 - PARS PENSION TRUST 0000 - Undesignated 60 - Contract Services 31,433 30,000 30,000 25,463 30,000 0 0%762-0000-60102 Administration 60 - Contract Services Totals:31,433 30,000 30,000 25,463 30,000 0 0% 0000 - Undesignated Totals:31,433 30,000 30,000 25,463 30,000 0 0% 762 - PARS PENSION TRUST Totals:31,433 30,000 30,000 25,463 30,000 0 0% 31,433 30,000 30,000 25,463 30,000 0 31,433 30,000 30,000 25,463 30,000 0 31,433 30,000 30,000 25,463 30,000 0 31,433 30,000 30,000 25,463 30,000 0 CITY OF LA QUINTA SPECIAL FUND EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 61 379 EXPENSE NOTES BY FUND NUMBER – 201 Gas Tax Fund Transfers Out for CIP – Cove Area Slurry Seal Improvements of $1,006,705. 203 Public Safety Fund There are no transfers out for CIP proposed for FY 2025/26. 210 Federal Assistance Fund Transfers Out for CIP – City Hall miscellaneous interior ADA improvements. This is a continuation of implementing ADA improvements at City parks, buildings, intersection curb ramps and sidewalks based upon the City's ADA Transition Plan Report. Expenses include the Boys and Girls Club Fee Waiver Reduction Program (CDBG) in the amount of $24,000. 212 Federal Assistance Fund There are no changes for expenditures from FY 2024/25, expenses include COPS robbery and burglary/theft prevention. 220 Quimby Fund does not have Capital Improvement project funding allocated in FY 2025/26. 221 AB 939 CalRecycle Fund is used for recycling solutions at schools & City parks. 223 Measure A Fund Transfers Out for CIP – Citywide traffic signal maintenance improvements of $235,000; Citywide Striping Refresh of $500,000; Miles Avenue Pavement Rehabilitation of $289,132; and the 5-Year PMP Update of $100,000. 225 Infrastructure Fund is a Development Impact Fee Fund used for capital improvements. No additional projects are anticipated in FY 2025/26. 226 Emergency Management Performance Grant (EMPG) Fund expenses are for emergency operations center (EOC). 227 State Homeland Security Programs (SHSP) Fund expenses are for Community Emergency Response Team (CERT) training. 230 CASp, AB 1379 Fund expenses are for training for Americans with Disability guidelines and a pass-through payment of 10% to the State Architect Office based a $4 per business license tax. 235 South Coast Air Quality Fund expenses are for an agreement between CVAG and member jurisdictions which contribute 75% of AB2766 South Coast Air Quality Management District (AQMD) revenues. 247 Economic Development Fund There are no transfers out for CIP proposed for FY 2025/26. Expenses are for general economic development activities. 250 Transportation DIF Fund Transfers Out are for CIP – Avenue 50 Widening Improvements from Jefferson Street to Madison Street of $579,109 and the existing developer impact fee reimbursement agreement of $400,000. 251 Parks & Rec DIF Fund is a Development Impact Fee Fund used for capital improvements. No additional projects are anticipated in FY 2025/26. CITY OF LA QUINTA SPECIAL FUND EXPENSE NOTES FY 2025/26 PROPOSED BUDGET 62 380 252 Civic Center DIF Fund is a Development Impact Fee Fund used for capital improvements. No additional projects are anticipated in FY 2025/26. 253 Library Development DIF Fund Advance Interest Expense is for outstanding Successor Agency loan repayment. 254 Community & Cultural Centers DIF Fund Transfers Out are for CIP – Cultural Campus of $482,561. 255, 256, and 257, and 259 Development Impact Fee Funds are used for capital improvements. For Fund 259, Transfers Out are for CIP – Maintenance and Operations Yard of $362,526. 270 Art in Public Places Fund (APP) covers the maintenance contract, updated inventory of all art in public places, internal city inspections and engineering services for new art installations. 405 SA PA 1 Capital Improvement Fund Bond proceeds designated for SilverRock Way improvements. 760 Supplemental Pension Plan Fund Annual PARS Trust Contribution is for one plan member as established in 2012. 761 CERBT Other Post Employment Benefit (OPEB) Trust Fund– The City participates in the California Employers’ Retiree Benefit Trust (CERBT) for the purpose of accumulating funding for OPEB obligations. The CERBT is a Section 115 Trust and is an agent multiple employer plan for those electing to prefund OPEB obligations. Expenses in this fund can come from losses on the portfolio and fees paid to administer the portfolio. 762 PARS Pension Trust Fund – In 2019, the City established a Section 115 Trust Agreement with U.S. Bank National Association and Public Agency Retirement Services (PARS), Trust Administrator. The Section 115 Trust was established as a means to set aside monies to fund the City’s pension and OPEB obligations. Contributions to the Section 115 Trust are irrevocable, the assets are dedicated to providing benefits to plan members, and the assets are protected from creditors of the City. The purpose of the Trust is to address the City’s pension obligations by accumulating assets to reduce the net pension liability. Expenses in this fund can come from losses on the portfolio and fees paid to administer the portfolio. CITY OF LA QUINTA SPECIAL FUND EXPENSE NOTES FY 2025/26 PROPOSED BUDGET 63 381 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 401 - CAPITAL IMPROVEMENT PROGRAMS 0000 - Undesignated 60 - Contract Services 407,982 1,296,407 4,501,974 448,703 1,443,482 (3,058,492)-68%401-0000-60103 Professional Services 168,278 1,426,957 7,694,254 97,346 1,623,917 (6,070,337)-79%401-0000-60108 Technical 1,043,013 2,147,658 5,312,035 1,382,733 1,744,207 (3,567,828)-67%401-0000-60185 Design 22,421,088 20,233,076 52,888,576 13,382,953 17,075,623 (35,812,953)-68%401-0000-60188 Construction 60 - Contract Services Totals:24,040,361 25,104,098 70,396,839 15,311,735 21,887,229 (48,509,610) -69% 62 - Maintenance & Operations 0 2,114,011 8,279,252 0 2,405,804 (5,873,448)-71%401-0000-60510 Contingency 62 - Maintenance & Operations Totals:0 2,114,011 8,279,252 0 2,405,804 (5,873,448) -71% 64 - Other Expenses 589,842 0 134,164 5,921 0 (134,164)-100%401-0000-60480 Contributions to Other Agencies 64 - Other Expenses Totals:589,842 0 134,164 5,921 0 (134,164)-100% 68 - Capital Expenses 0 0 1,916,311 0 0 (1,916,311)-100%401-0000-74010 Land Acquisition 68 - Capital Expenses Totals:0 0 1,916,311 0 0 (1,916,311) -100% 99 - Transfers Out (700)0 0 0 0 0 0%401-0000-99900 Transfers Out 99 - Transfers Out Totals:(700)0 0 0 0 0 0% 0000 - Undesignated Totals:24,629,504 27,218,109 80,726,566 15,317,656 24,293,033 (56,433,533) -70% 401 - CAPITAL IMPROVEMENT PROGRAMS Totals:24,629,504 27,218,109 80,726,566 15,317,656 24,293,033 (56,433,533) -70% 407,982 1,296,407 4,501,974 448,703 1,443,482 (3,058,492) 168,278 1,426,957 7,694,254 97,346 1,623,917 (6,070,337) 1,043,013 2,147,658 5,312,035 1,382,733 1,744,207 (3,567,828) 22,421,088 20,233,076 52,888,576 13,382,953 17,075,623 (35,812,953) 24,040,361 25,104,098 70,396,839 15,311,735 21,887,229 (48,509,610) 0 2,114,011 8,279,252 0 2,405,804 (5,873,448) 0 2,114,011 8,279,252 0 2,405,804 (5,873,448) 589,842 0 134,164 5,921 0 (134,164) 589,842 0 134,164 5,921 0 (134,164) 0 0 1,916,311 0 0 (1,916,311) 0 0 1,916,311 0 0 (1,916,311) (700)0 0 0 0 0 (700)0 0 0 0 0 24,629,504 27,218,109 80,726,566 15,317,656 24,293,033 (56,433,533) 24,629,504 27,218,109 80,726,566 15,317,656 24,293,033 (56,433,533) CITY OF LA QUINTA CAPITAL IMPROVEMENT PROGRAM EXPENSE DETAIL FY 2025/26 PROPOSED BUDGET 64 382 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS Transfers In 24,293,033401-0000-49500 Amount CDBG Funds- Citywide Misc. ADA Improvements -136,000 DIF Community/Cultural Center-- Cultural Campus -482,561 DIF Maintenance & Facilities- M&O Yard -362,526 DIF Transportation- Avenue 50 Widening -579,109 Equip Replacement Fund- CPM Plan Improvements -50,000 General Fund - Washington Street Pavement Rehab -100,000 General Fund- ADA Accessible Ramps -20,000 General Fund- Bear Creek Trailhead Restroom -250,000 General Fund- Citywide Drainage Enhancements -477,000 General Fund- Citywide Striping Refresh -500,000 General Fund- Cultural Campus -1,550,000 General Fund- Miles Avenue Pavement Rehab -1,600,000 General Fund- PMP Street Improvements -1,000,000 General Fund- Sidewalk Improvements -55,000 Measure A- 5-Year PMP Update -100,000 Measure A- Citywide Striping Refresh -500,000 Measure A- Citywide Traffic Signal Improvements -235,000 Measure A- Miles Avenue Pavement Rehabilitation -289,132 Measure G- Cultural Campus -1,200,000 Measure G- Highway 111 Corridor Plan Improvemen -1,000,000 Measure G- Maintenance & Operations Yard -9,800,000 Measure G- Miles Avenue Pavement Rehabilitation -1,000,000 Measure G- PMP Street Improvements -2,000,000 SB 1- Cove Area Slurry Seal Improvements Phase 2 -1,006,705 CITY OF LA QUINTA CAPITAL IMPROVEMENT PROGRAM EXPENSE NOTES FY 2025/26 PROPOSED BUDGET 65 383 DESCRIPTION OF FUNDS FUND TYPE - GENERAL FUND 101 - GENERAL FUND - The primary fund of the City used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Public Safety (Police and Fire), Public Works, and Community Services. FUND TYPE - SPECIAL REVENUE FUNDS 105 – DISASTER RECOVERY FUND – This fund was created to recognize one-time federal funding passed by Congress in 2021, an act designed to deliver relief to American workers and aid in economic recovery in the wake of COVID-19 by providing Coronavirus state and local fiscal recovery funds for state and local governments. 201 - GASOLINE TAX FUND - To account for gasoline sales tax allocations received from the State of California. These revenues are restricted by the State to expenditures for street related purposes only. 202 - LIBRARY AND MUSEUM FUND – This fund accounts for the revenues from property taxes generated 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 - This fund is used to account for revenues from the Community Development Block Grant (CDBG) received from the federal government and the expenditures of those resources. 212 – CITIZENS FOR PUBLIC SAFETY (COPS) FUND - This fund is used to account for State of California funds received for law enforcement activities of the Riverside County Sheriff’s Department, also known as Supplemental Law Enforcement Services Fund (SLESF). 215 – LIGHTING AND LANDSCAPE FUND – This fund accounts for special assessments levied on real property and the expenditure therefore from city-wide lighting and landscape maintenance and improvements. 220 - QUIMBY FUND - This fund is used to account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. Capital projects to be funded from this source will be budgeted and expended in a separate Capital Projects Fund. 221 - AB 939 CAL-RECYCLE FUND - This fund is used to account for franchise fees collected from the city waste hauler that are used to reduce waste sent to landfills through recycling efforts. CITY OF LA QUINTA FY 2025/26 PROPOSED BUDGET 66 384 DESCRIPTION OF FUNDS - CONTINUED 223 - MEASURE A FUND – In 1988, Riverside County voters approved a half cent sales tax, known as Measure A, to fund a variety of highway improvements, local street and road maintenance, commuter assistance and specialized highway transit projects. This fund is used to collect this tax and pursuant to the provision of Measure A, it is restricted for local street and road expenditures. 226 – EMERGENCY MANAGEMENT PERFORMANCE FUND – Revenue received from the California Office of Emergency Services (CalOES) and restricted for emergency operations center (EOC) materials and training. 227 – STATE HOMELAND SECURITY PROGRAM (SHSP) FUND – Revenue received from the State Homeland Security Grant Program to local governments to assist to further the State of California’s efforts to prepare for natural and man-made disasters and terrorism related impacts to communities. 230 – CASp FUND, AB 1379 – This fund was established as required under Assembly Bill 1379 and Senate Bill 1186 for the collection of the annual $4.00 business license accessibility fee. Funds shall be utilized for expenses related to enhancing accessibility requirements. 235 - SOUTH COAST AIR QUALITY FUND - This fund is used to account for contributions from the South Coast Air Quality Management District. Uses are limited to the reduction and control of airborne pollutants. 244 – HOUSING GRANTS - This fund is used to account for housing related grants as required by outside agencies for reporting purposes. 247 – ECONOMIC DEVELOPMENT FUND – This fund accounts for revenues and expenditures related to proceeds from sale of City owned land and future economic development. 270 - ART IN PUBLIC PLACES - This fund accounts for development fees paid in lieu of acquisition and installation of approved artworks in a development with expenditures restricted to acquisition, installation, maintenance, and repair of artworks at approved sites. 275 – PUBLIC SAFETY OFFICERS FUND - This fund may be used for payments to survivors of deceased police or fire personnel serving the City of La Quinta. 241 and 243 HOUSING AUTHORITY - These funds are used to account for the housing activities of the Housing Authority which are to promote and provide quality affordable housing. 249 SUCESSOR AGENCY BOND FUNDS - This fund is restricted per individual bond covenants. 405 – SUCCESSOR AGENCY PROJECT AREA 1 CAPITAL IMPROVEMENT FUNDS – This fund is restricted per individual bond covenants. 760 - SUPPLEMENTAL PENSION PLAN FUND – This fund is a defined contribution pension plan established by the City to provide retirement excess benefits to general employees of the City. CITY OF LA QUINTA FY 2025/26 PROPOSED BUDGET 67 385 DESCRIPTION OF FUNDS - CONTINUED 761 – OTHER POST EMPLOYMENT BENEFIT (OPEB) TRUST – The City participates in the California Employers’ Retiree Benefit Trust (CERBT) for the purpose of accumulating funding for OPEB obligations. The CERBT is a Section 115 Trust and is an agent multiple employer plan for those electing to prefund OPEB obligations. 762 – PENSION TRUST FUND – In 2019, the City established a Section 115 Trust Agreement with U.S. Bank National Association and Public Agency Retirement Services (PARS), Trust Administrator. The Section 115 Trust was established as a means to set aside monies to fund the City’s pension and OPEB obligations. Contributions to the Section 115 Trust are irrevocable, the assets are dedicated to providing benefits to plan members, and the assets are protected from creditors of the City. The purpose of the Trust is to address the City’s pension obligations by accumulating assets to reduce the net pension liability. FUND TYPE – DEBT SERVICE FUND 310 - FINANCING AUTHORITY, DEBT SERVICE - This fund is used to account for the debt service that will be used for the principal and interest payments of the Financing Authority’s outstanding debt and any related reporting requirements. FUND TYPE - CAPITAL PROJECTS FUNDS 225 - INFRASTRUCTURE FEE FUND - This fund is used to account for the accumulation of resources, provided through developer fees for the acquisition, construction or improvement of the City’s infrastructure as defined by Resolution. Capital projects to be funded from this source will be budgeted and expended in a separate Capital Projects Fund. 250 – TRANSPORTATION DIF, 251 - PARK & RECREATION DIF, 252 - CIVIC CENTER DIF, 253 - LIBRARY COMMUNITY CENTER, 254 – COMMUNITY CENTER DIF, 255 - STREET FACILITIY DIF, 256 - PARK FACILITY DIF, 257 - FIRE DIF FUNDS, AND 259 – MAINTENANCE FACILITIES DIF FUND- These funds are used to account for developer impact fees collected for specific public improvements and may not be utilized for ongoing operational expenses. 401 - CAPITAL PROJECTS FUND – This fund is used to account for the planning, design, and construction of various capital projects throughout the City of La Quinta. FUND TYPE - INTERNAL SERVICE FUNDS 501 - FACILITY AND FLEET REPLACEMENT FUND - This fund is used to account for the ultimate replacement of city owned and operated vehicles, heavy equipment, and facilities. 502 - INFORMATION TECHNOLOGY FUND - This fund is used to account for the ultimate replacement of city owned and operated computer hardware, software and computer maintenance and operations. CITY OF LA QUINTA FY 2025/26 PROPOSED BUDGET 68 386 DESCRIPTION OF FUNDS - CONTINUED 503 - PARK EQUIPMENT & FACILITIES FUND - This fund is used to account for the replacement of city owned and operated park equipment and facilities. 504 – INSURANCE FUND – This fund is used to account for the city’s insurance coverage. FUND TYPE – ENTERPRISE FUNDS 601 - SILVERROCK GOLF COURSE FUND - This account is used to account for the activities of the SilverRock Golf course. 602 - SILVERROCK GOLF COURSE RESERVE FUND - This fund is used to account for golf course reserves for future capital improvements of the SilverRock Golf course. CITY OF LA QUINTA FY 2025/26 PROPOSED BUDGET 69 387 388 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Members of the Financial Advisory Commission FROM: Claudia Martinez, Finance Director DATE: June 4, 2025 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  Interim Audit for fiscal year 2024/25 is scheduled to take place from June 16 through June 27, 2025 COMMITTEE UPDATES  Financial Projections Task Force (Commissioners Anderson, Batavick, and Dorsey) o Conducted meeting on October 28, 2024 o Additional meetings to be held after budget adoption  FY 2025/26 General Fund Operating Budget Committee (Commissioners Lee, Mast, and Way) o Conducted meeting on May 28, 2025  Financial Statement and Audit training - Staff is currently researching options with the new auditing firm CITY COMMISSIONER SEATS  The City is looking for interested citizens to fill vacancies on the following City Commissions: DEPARTMENTAL REPORT ITEM NO. 1 389 For an application and more information please contact the City Clerk’s office at 760-777-7092 or visit: https://www.laquintaca.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 $1,148,832.08. 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 and 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. City Manager’s Office is in negotiations with IID and all impacted stakeholders to find an equitable solution. Agreement with IID would be required before equipment can be ordered; pending design approval from IID, and final estimated costs before the City’s potential cost- sharing is defined, which would be presented to Council for approval. o Council business session held on:  March 18, 2025 – Approval of the proposed Coachella Valley Power Agency (CVPA) Joint Powers Agreement (JPA) to establish an independent public agency for Riverside County and the Coachella Valley to give stakeholders the authority they have sought to address electrical infrastructure needs and services. Staff encourages the FAC members to view the meetings as time permits. 390  Tropical Storm Hilary – Federal Disaster Assistance o The City is currently working with FEMA on the reimbursement process for a total of 9 projects:  Citywide Debris Removal  Citywide Storm Preparation and Road Closures  Pioneer Park- shade structure  Adams Park- retention basin  X Park- retention basin  Eisenhower retention basin  SilverRock Park- retention basin & slope repair  SilverRock Park – lake vault  SilverRock Way and Avenue 62- sinkholes 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. Attachment: 1. Project Activity Report 391 Page 1 of 65/30/2025 2:56:27 PM Project Activity Report City of La Quinta By Project Number Report Dates: 07/01/2019 - 05/30/2025 201905 Highway 111 Corridor Area Plan ImplementaƟ Fund 401 Construction in Process St Improvements Active Project Number Project Name Group Type Status Revenues Account NameAccount Key Category Total Activity -1,024,817.33201905MGMeasure G Funding Measure G - Measure G Funding ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number -1,980.00MG 201905 HWY 111 CORRIDOR PLANTransfers In 03/31/2020401-0000-49500 -5,006.25MG 201905 HIGHWAY 111 CORRIDOR AREA PLANTransfers In 06/30/2020401-0000-49500 -6,986.25FY 19/20 Total: -11,715.00MG 201905 HIGHWAY 111 CORRIDOR AREA PLANTransfers In 09/30/2020401-0000-49500 -41,035.00MG 201905 HIGHWAY 111 CORRIDOR AREA PLANTransfers In 12/31/2020401-0000-49500 -7,955.00MG 201905 HIGHWAY 111 CORRIDOR AREA PLANTransfers In 03/31/2021401-0000-49500 -230,049.59MG HIGHWAY 111 CORRIDOR AREA PLANTransfers In 06/30/2021401-0000-49500 -290,754.59FY 20/21 Total: -2,995.00MG 201905 HIGHWAY 111 CORRIDOR PLANTransfers In 09/30/2021401-0000-49500 -30,468.25MG 201905 HWY CORRIDOR AREA PLANTransfers In 12/31/2021401-0000-49500 -3,020.00MG 201905 HWY CORRIDOR AREA PLANTransfers In 03/31/2022401-0000-49500 -130,479.46MG 201905 HWY CORRIDOR AREA PLANTransfers In 06/30/2022401-0000-49500 -166,962.71FY 21/22 Total: -14,775.00MG 201905 HWY CORRIDOR AREA PLANTransfers In 09/30/2022401-0000-49500 -4,537.50MG 201905 HIGHWAY 111 CORRIDOR AREATransfers In 12/31/2022401-0000-49500 -145,350.50MG 201905 HIGHWAY 111 CORRIDOR AREATransfers In 03/31/2023401-0000-49500 -120,554.00MG 201905 HIGHWAY 111 CORRIDOR AREATransfers In 06/30/2023401-0000-49500 -285,217.00FY 22/23 Total: -49,950.15MG 201905 HIGHWAY 111 CORRIDOR AREATransfers In 09/30/2023401-0000-49500 -1,662.50MG 201905 HIGHWAY 111 CORRIDOR AREATransfers In 12/31/2023401-0000-49500 -58,634.71MG 201905 HIGHWAY 111 CORRIDOR AREATransfers In 03/31/2024401-0000-49500 -237,691.79CORR SB1 FUNDING FOR 201905 PROJECTTransfers In 06/30/2024401-0000-49500 -347,939.15FY 23/24 Total: 73,042.37CORR MG 201905/202225 HIGHWAY 111 CORRIDOR ATransfers In 09/30/2024401-0000-49500 73,042.37FY 24/25 Total: 0.00201905SB1SB1 Maintenance Funding SB1 Maint Fund - SB1 Maintenance Funding ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number 237,691.79CORR SB1 FUNDING FOR 201905 PROJECTTransfers In 06/30/2024401-0000-49500 -102,565.49SB1 201905 HIGHWAY 111 CORRIDOR AREATransfers In 06/30/2024401-0000-49500 ATTACHMENT 1 392 Report Dates: 07/01/2019 - 05/30/2025Project Activity Report Page 2 of 65/30/2025 2:56:27 PM ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number -57,573.80SB1 201905 HIGHWAY 111 CORRIDOR AREATransfers In 06/30/2024401-0000-49500 -77,552.50SB1 201905/202223 HIGHWAY 111 CORRIDOR AREATransfers In 06/30/2024401-0000-49500 0.00FY 23/24 Total: Total Revenues: -1,024,817.33 Expenses Account NameAccount Key Category Total Activity 1,060,790.83201905DDesign Expense Design - Design Expense ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number 8,290.002019-05 HWY 111 CORRIDOR PROJECT (PLAN&ENG)Design 12/18/2020401-0000-60185 151505GHD INC. 25,600.002019-05 HWY 111 CORRIDOR PROJECT (PLAN&ENG)Design 12/18/2020401-0000-60185 153361GHD INC. 78,461.2502/2021 - HWY 111 PLANNING/ ENGINEERING SVCSDesign04/16/2021401-0000-60185 158460GHD INC. 32,923.7512/2020 - HWY 111 PLANNING/ ENGINEERING SVCSDesign04/16/2021401-0000-60185 155454GHD INC. 75,409.8404/2021 - HWY 111 PLANNING/ENGINEERING SVCSDesign06/11/2021401-0000-60185 161990GHD INC. 34,827.2505/2021 - HWY 111 PLANNING/ENGINEERING SVCSDesign06/25/2021401-0000-60185 163575GHD INC. 255,512.09FY 20/21 Total: 19,315.7506/2021 - HWY 111 PLANNING/ENGINEERING SVCSDesign10/08/2021401-0000-60185 165668GHD INC. 8,620.0007/2021 - HWY 111 PLANNING/ENGINEERING SVCSDesign10/29/2021401-0000-60185 380-0000621GHD INC. 207.4303/24/22 - HWY 111 SITE TOUR LUNCHDesign04/22/2022401-0000-60185 MAR'226925BMBANK OF THE WEST (PLEASE SEE 460.0003/24/22 - HWY 111 SITE TOUR TRANSPORTATIONDesign04/22/2022401-0000-60185 MAR'226925BMBANK OF THE WEST (PLEASE SEE 41,235.8303/2022 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign06/30/2022401-0000-60185 380-0012735GHD INC. 84,123.7006/2022 HWY 111 CORRIDOR PLANNING/ENGINERRIDesign06/30/2022401-0000-60185 380-0016011GHD INC. 153,962.71FY 21/22 Total: 12,962.5007/2022 - HWY 111 CORRIDOR PLANNING/ENGINERRIDesign09/02/2022401-0000-60185 380-0017688GHD INC. 49,617.5009/2022 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign03/03/2023401-0000-60185 380-0020901GHD INC. 51,571.2510/2022 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign03/03/2023401-0000-60185 380-0023845GHD INC. 18,251.2511/2022 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign03/03/2023401-0000-60185 380-0024095GHD INC. 9,171.2512/2022 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign03/03/2023401-0000-60185 380-0025445GHD INC. 12,726.7501/2023 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign03/17/2023401-0000-60185 380-0027217GHD INC. 18,667.5802/2023 - HWY 111 CORRIDOR PLANNING/ENGINEERIDesign06/30/2023401-0000-60185 380-0028778GHD INC. 9,366.2503/2023 - HWY 111 CORRIDOR PLANNING/ENGINEERIDesign06/30/2023401-0000-60185 380-0030405GHD INC. 22,207.5104/2023 - HWY 111 CORRIDOR PLANNING/ENGINEERIDesign06/30/2023401-0000-60185 380-0031910GHD INC. 22,721.9505/2023 - HWY 111 CORRIDOR PLANNING/ENGINEERIDesign06/30/2023401-0000-60185 380-0033492GHD INC. 42,803.2106/2023 - HWY 111 CORRIDOR PLANNING/ENGINERRIDesign06/30/2023401-0000-60185 380-0035378GHD INC. 270,067.00FY 22/23 Total: 49,312.6507/2023 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign09/08/2023401-0000-60185 380-0036834GHD INC. 54,534.7110/2023 - HWY 111 CORRIDOR PLANNING/ENGINEERIDesign01/26/2024401-0000-60185 380-0041445GHD INC. 32,062.3601/2024 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign05/24/2024401-0000-60185 380-0047294GHD INC. 53,767.9303/2024 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign05/24/2024401-0000-60185 380-0048891GHD INC. 13,082.7004/2024 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign06/30/2024401-0000-60185 380-0051494GHD INC. 393 Report Dates: 07/01/2019 - 05/30/2025Project Activity Report Page 3 of 65/30/2025 2:56:27 PM ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number 877.5005/01-06/30/24 - ONCALL PLANNING SERVICESDesign06/30/2024401-0000-60185 TN1198158TERRA NOVA PLANNING & RESE 20,296.30ACCRUE 05/2024 HWY 111 CORRIDOR PLANNINGDesign06/30/2024401-0000-60185 37,277.50ACCRUE 06/2024 HWY 111 CORRIDOR PLANNINGDesign06/30/2024401-0000-60185 261,211.65FY 23/24 Total: 20,296.3005/2024 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign09/20/2024401-0000-60185 380-0054142REVGHD INC. 37,277.5006/2024 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign09/20/2024401-0000-60185 380-0054348GHD INC. 3,540.13HWY 111 CONSTRUCTION SIGNAGEDesign09/20/2024401-0000-60185 98554BEST SIGNS INC -20,296.30ACCRUE 05/2024 HWY 111 CORRIDOR PLANNINGDesign09/30/2024401-0000-60185 -37,277.50ACCRUE 06/2024 HWY 111 CORRIDOR PLANNINGDesign09/30/2024401-0000-60185 22,993.5008/2024 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign11/08/2024401-0000-60185 380-0057493GHD INC. 9,563.7509/2024 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign02/07/2025401-0000-60185 380-0063398GHD INC. 83,940.0012/2024 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign02/07/2025401-0000-60185 380-0063431GHD INC. 120,037.38FY 24/25 Total: 88,041.25201905PProfessional Expense Professional - Professional Expense ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number 1,980.0002/2020 HIGHWAY 111 CORRIDORProfessional Services 03/20/2020401-0000-60103 8 JOB 2019-08NAI CONSULTING INC 825.0003/2020 HIGHWAY 111 CORRIDORProfessional Services 04/24/2020401-0000-60103 9 JOB 2019-08NAI CONSULTING INC 330.0005/2020 HIGHWAY 111 CORRIDORProfessional Services 06/12/2020401-0000-60103 11 JOB 2019-08NAI CONSULTING INC 3,851.2506/2020 HIGHWAY 111 CORRIDORProfessional Services 06/30/2020401-0000-60103 12 JOB 2019-08NAI CONSULTING INC 6,986.25FY 19/20 Total: 9,240.0007/2020 HIGHWAY 111 CORRIDORProfessional Services 09/04/2020401-0000-60103 13 JOB 2019-08NAI CONSULTING INC 2,475.0008/2020 HIGHWAY 111 CORRIDORProfessional Services 09/25/2020401-0000-60103 14 JOB 2019-08NAI CONSULTING INC 2,182.5009/2020 HIGHWAY 111 CORRIDORProfessional Services 10/09/2020401-0000-60103 15 JOB 2019-08NAI CONSULTING INC 4,962.5010/2020 HIGHWAY 111 CORRIDORProfessional Services 12/04/2020401-0000-60103 16 JOB 2019-08NAI CONSULTING INC 2,657.50HIGHWAY 111 CORRIDORProfessional Services 01/15/2021401-0000-60103 17 JOB 2019-08NAI CONSULTING INC 720.00HIGHWAY 111 CORRIDORProfessional Services 01/22/2021401-0000-60103 18 JOB 2019-08NAI CONSULTING INC 980.00HIGHWAY 111 CORRIDORProfessional Services 03/05/2021401-0000-60103 19 JOB 2019-08NAI CONSULTING INC 3,597.50HIGHWAY 111 CORRIDORProfessional Services 03/19/2021401-0000-60103 2019-08.20NAI CONSULTING INC 2,072.50HIGHWAY 111 CORRIDORProfessional Services 04/23/2021401-0000-60103 2019-08.21NAI CONSULTING INC 1,657.50HIGHWAY 111 CORRIDORProfessional Services 05/28/2021401-0000-60103 2019-08.22NAI CONSULTING INC 1,850.00HIGHWAY 111 CORRIDORProfessional Services 06/18/2021401-0000-60103 2019-08.23NAI CONSULTING INC 2,847.50HIGHWAY 111 CORRIDORProfessional Services 06/30/2021401-0000-60103 2019-08.24NAI CONSULTING INC 35,242.50FY 20/21 Total: 630.0007/2021 HIGHWAY 111 CORRIDORProfessional Services 09/17/2021401-0000-60103 2019-08.25NAI CONSULTING INC 2,365.0008/2021 HIGHWAY 111 CORRIDORProfessional Services 09/17/2021401-0000-60103 2019-08.26NAI CONSULTING INC 790.0009/2021 HIGHWAY 111 CORRIDORProfessional Services 11/05/2021401-0000-60103 2019-08.27NAI CONSULTING INC 1,742.5010/2021 HIGHWAY 111 CORRIDORProfessional Services 12/03/2021401-0000-60103 2019-08.28NAI CONSULTING INC 620.0011/2021 - HIGHWAY 111 CORRIDORProfessional Services 01/14/2022401-0000-60103 2019-08.29NAI CONSULTING INC 930.0012/2021 HIGHWAY 111 CORRIDORProfessional Services 01/14/2022401-0000-60103 2019-08.30NAI CONSULTING INC 192.5001/2022 HIGHWAY 111 CORRIDORProfessional Services 02/25/2022401-0000-60103 2019-08.31NAI CONSULTING INC 394 Report Dates: 07/01/2019 - 05/30/2025Project Activity Report Page 4 of 65/30/2025 2:56:27 PM ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number 1,277.5002/2022 HIGHWAY 111 CORRIDORProfessional Services 03/18/2022401-0000-60103 2019-08.32NAI CONSULTING INC 1,860.0003/2022 - HIGHWAY 111 CORRIDORProfessional Services 04/15/2022401-0000-60103 2019-08.33NAI CONSULTING INC 967.5005/2022 HIGHWAY 111 CORRIDORProfessional Services 06/30/2022401-0000-60103 2019-08.35NAI CONSULTING INC 1,625.0006/2022 HIGHWAY 111 CORRIDORProfessional Services 06/30/2022401-0000-60103 2019-08.36NAI CONSULTING INC 13,000.00FY 21/22 Total: 1,812.5007/2022 2019-05 HIGHWAY 111 CORRIDORProfessional Services 08/26/2022401-0000-60103 2019-08.37NAI CONSULTING INC 1,700.0008/2022 HIGHWAY 111 CORRIDORProfessional Services 10/07/2022401-0000-60103 2019-08.38NAI CONSULTING INC 1,962.5009/2022 - 2019-05 HIGHWAY 111 CORRIDORProfessional Services 10/28/2022401-0000-60103 2019.08.39NAI CONSULTING INC 875.0012/2022 - 2019-05 HIGHWAY 111 CORRIDORProfessional Services 12/16/2022401-0000-60103 2019-08.41NAI CONSULTING INC 3,312.5012/2022 - 2019-05 HIGHWAY 111 CORRIDORProfessional Services 02/03/2023401-0000-60103 2019-08.42NAI CONSULTING INC 700.0001/2023 - 2019-05 HIGHWAY 111 CORRIDORProfessional Services 02/24/2023401-0000-60103 2019-08.43NAI CONSULTING INC 725.0003/2023 HIGHWAY 111 CORRIDORProfessional Services 05/05/2023401-0000-60103 2019-08.44NAI CONSULTING INC 2,137.5003/2023 HIGHWAY 111 CORRIDORProfessional Services 05/05/2023401-0000-60103 2019-08.45NAI CONSULTING INC 1,250.0005/2023 - 2019-05 HIGHWAY 111 CORRIDORProfessional Services 06/23/2023401-0000-60103 2019-08.47NAI CONSULTING INC 675.0006/2023 - 2019-05 HIGHWAY 111 CORRIDORProfessional Services 06/30/2023401-0000-60103 2019-08.48NAI CONSULTING INC 15,150.00FY 22/23 Total: 637.5007/2023 HIGHWAY 111 CORRIDORProfessional Services 08/25/2023401-0000-60103 2019-08.49NAI CONSULTING INC 437.5008/2023 - 2019-05 HIGHWAY 111 CORRIDORProfessional Services 10/13/2023401-0000-60103 2019-08.50NAI CONSULTING INC 700.0009/2023 HIGHWAY 111 CORRIDORProfessional Services 10/27/2023401-0000-60103 2019-08.51NAI CONSULTING INC 525.0010/2023 - 2019-05 HIGHWAY 111 CORRIDORProfessional Services 11/17/2023401-0000-60103 2019-08.52NAI CONSULTING INC 887.5011/2023 HIGHWAY 111 CORRIDORProfessional Services 01/19/2024401-0000-60103 2019-08.53NAI CONSULTING INC 875.0012/2023 HIGHWAY 111 CORRIDORProfessional Services 01/19/2024401-0000-60103 2019-08.54NAI CONSULTING INC 2,337.5001/2024 HIGHWAY 111 CORRIDORProfessional Services 02/23/2024401-0000-60103 2019-08.55NAI CONSULTING INC 500.0003/2024 HIGHWAY 111 CORRIDORProfessional Services 04/26/2024401-0000-60103 2019-08.57NAI CONSULTING INC 750.0004/2024 HIGHWAY 111 CORRIDORProfessional Services 05/31/2024401-0000-60103 2019-08.58NAI CONSULTING INC 537.5005/2024 HIGHWAY 111 CORRIDORProfessional Services 06/30/2024401-0000-60103 2019-08.59NAI CONSULTING INC 987.5006/2024 HIGHWAY 111 CORRIDORProfessional Services 06/30/2024401-0000-60103 2019-08.60NAI CONSULTING INC 9,175.00FY 23/24 Total: 970.0007/2024 - HIGHWAY 111 CORRIDORProfessional Services 09/06/2024401-0000-60103 2024-03.01NAI CONSULTING INC 475.0008/2024 - HIGHWAY 111 CORRIDORProfessional Services 10/04/2024401-0000-60103 2024-03.02R1NAI CONSULTING INC 1,407.5009/2024 HIGHWAY 111 CORRIDORProfessional Services 11/08/2024401-0000-60103 2024-03.03NAI CONSULTING INC 47.5010/2024 HIGHWAY 111 CORRIDORProfessional Services 12/06/2024401-0000-60103 2024-03.04NAI CONSULTING INC 242.5011/2024 HIGHWAY 111 CORRIDORProfessional Services 12/27/2024401-0000-60103 2024-03.05NAI CONSULTING INC 195.0012/2024 - PROFESSIONAL ENGINEERING SERVICESProfessional Services 02/07/2025401-0000-60103 2024-03.06NAI CONSULTING INC 1,260.0001/2025 HIGHWAY 111 CORRIDORProfessional Services 02/28/2025401-0000-60103 2024-03.07NAI CONSULTING INC 1,507.5002/2025 HIGHWAY 111 CORRIDORProfessional Services 03/21/2025401-0000-60103 2024-03.08NAI CONSULTING INC 1,602.5003/2025 - HIGHWAY 111 CORRIDORProfessional Services 05/02/2025401-0000-60103 2024-03.09NAI CONSULTING INC 780.0004/2025 HIGHWAY 111 CORRIDORProfessional Services 05/16/2025401-0000-60103 2024-03.10NAI CONSULTING INC 8,487.50FY 24/25 Total: 395 Report Dates: 07/01/2019 - 05/30/2025Project Activity Report Page 5 of 65/30/2025 2:56:27 PM Total Expenses: 1,148,832.08 124,014.75201905 Total: 396 Report Dates: 07/01/2019 - 05/30/2025Project Activity Report Page 6 of 65/30/2025 2:56:27 PM Summary Project NameProject Number Project Summary Total Revenue Total Expense Revenue Over/ (Under) Expenses Highway 111 Corridor Area Plan Implementation2019051,024,817.33 1,148,832.08 -124,014.75 Project Totals:1,024,817.33 1,148,832.08 -124,014.75 Group Summary Group Total Revenue Total Expense Revenue Over/ (Under) Expenses Fund 401 Construction in Process 1,024,817.33 1,148,832.08 -124,014.75 Group Totals:1,024,817.33 1,148,832.08 -124,014.75 Type Summary Type Total Revenue Total Expense Revenue Over/ (Under) Expenses St Improvements 1,024,817.33 1,148,832.08 -124,014.75 Type Totals:1,024,817.33 1,148,832.08 -124,014.75 397 POWER POINTS JUNE 4, 2025 FINANCIAL ADVISORY COMMISSION SPECIAL MEETING June 4, 2025 1 Financial Advisory Commission Special Meeting June 4, 2025 1 2 June 4, 2025 2 Financial Advisory Commission Special Meeting 6/4/2025 Business Item No. 1 Recommend Council Approval of Fiscal Year 2025/26 Investment Policy Proposed Edits Section V Maximum Maturities: Added language from the state government code regarding forward settlement dates. §53601 “A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment.” Section VII: Minor edit to decouple the annual approval of the investment policy from the annual granting of investment authority to the Treasurer. When the Policy goes to City Council for adoption, the title of the staff report, shall indicate approval of the Policy and designation of authority to the City Treasurer. Section IX: Clarifications to the type of documentation the City might use to verify the credentials of broker/dealers as compared to advisors or financial institutions. Financial statements, FINRA reporting, SOC-1 reporting, etc. 3 4 June 4, 2025 3 Proposed Edits, Continued • Section X Permissible Deposits and Investments: Clarified that while the policy generally allows for investments as permitted by the state code, our policy may at times be more restrictive than the code. Placed bank (non-negotiable) CDs under the ‘Checking, Savings, Sweep Accounts’ category, as negotiable CDs are a tradeable product on the secondary market • Section XVI Review of Investment Portfolio: Additional language regarding how often staff monitors the portfolio, along with available market information, for potential issues with securities falling out of compliance with the policy CMTA Certification 5 6 June 4, 2025 4 Financial Advisory Commission Special Meeting 6/4/2025 Business Item No. 2 Receive and File the Annual Comprehensive Financial Report for Year Ended June 30, 2024 Conducted virtually by LSL, LLP from August 2024– February 2025 Reviewed nearly 1,000 documents & conducted interviews Issued a clean audit opinion – most favorable conclusion ACFR meets the GFOA’s Certificate of Achievement Program’s requirements and has been submitted for another certification Auditor comments regarding the audit shall be provided tonight Audit Summary 7 8 June 4, 2025 5 2024 Financial Audit Presented to: City of La Quinta Financial Advisory Commission June 4, 2025 Auditor Information Ryan Domino, CPA Partner, Assurance & Advisory LSL, LLP Ryan.Domino@lslcpas.com Experience:•13 years auditing cities and special districts in the Southern California and West Texas regions•Currently work with 3 cities in the Coachella Valley•Member of AICPA, CalCPA, GFOA, CSMFO, and TXCPA 9 10 June 4, 2025 6 Scope of Engagement •LSL has been engaged by the City to perform the following procedures: •Financial statement audit for the year ended June 30, 2024, in accordance with generally accepted auditing standards and Government Auditing Standards •Single audit over the federal award programs for the year ended June 30, 2024, in accordance with the federal Uniform Guidance. •This is the 1st year of LSL’s contract with the City. •Interim Fieldwork •Aug. 12 – Aug. 23, 2024 •Examined internal controls •Provided feedback to management •Performed our audit risk assessment •Planned year-end audit procedures to respond to risk •Year-End Fieldwork •Nov. 25 – Feb. 21, 2025 •Detailed testing of account balances and transactions •Compliance testing with laws, regulations, grant agreements, contracts •Single Audit testing •Other procedures necessary to obtain sufficient, appropriate audit evidence Scope of Engagement 11 12 June 4, 2025 7 Results of Audit •We issued an unmodified auditor’s opinion on the financial statements. •Financial statements are accurate and reliable as of June 30, 2024. •We issued the Report on Internal Control and Compliance •One significant deficiency in internal control noted. •No material weaknesses in internal control noted. •One material noncompliance with laws, regulations, grants, etc. noted (related to the significant deficiency, not a separate finding). Finding Summary •Criteria: Because the City expended more than $750,000 in federal awards, the City was required to complete the financial audit and the Single Audit by March 31st. •Condition: The City’s audits were finalized, and reports were issued on May 15, 2025. •Cause: The prior year’s audit had a delayed completion, which prevented the City from scheduling the 2024 audit early enough to meet the March 31 deadline. •Corrective Action: Management is taking corrective actions to remediate the issue and implement process improvements to enhance timeliness of financial reporting. Management has scheduled the 2025 audits for September 2025, which should provide more than ample time to meet the deadline for this year. We do not expect this finding to be repeated in 2025. 13 14 June 4, 2025 8 Other Results of Audit •We issued an unmodified auditor’s opinion on the City’s compliance with the requirements of major federal award programs. •We identified no going concern doubts as of June 30, 2024. •We identified no fraud, waste, or abuse during the fiscal year ended June 30, 2024. Other Results of Audit •We had no disagreements with management about application of accounting principles. •We had no difficulties conducting our audits. •We determined that all estimates used by management in preparing the financial statements were reasonable. 15 16 June 4, 2025 9 Questions www.lslcpas.com contact.us@lslcpas.com CALIFORNIA: Irvine | Sacramento TEXAS: The Woodlands 17 18 June 4, 2025 10 ACFR Content Major Events • Transmittal letter • Management Discussion and Analysis (MD&A) Financial Statements • Balance sheets, statement of net position & cash flows • Budgetary comparison schedules Summaries & Charts • 18 Notes • Statistical section, 10-year comparison Statement of Net Position AmountCategory 592,061,273Capital Assets 70,215,219Restricted 242,727,583Unrestricted $905,004,075TOTAL Indicators of a City’s fiscal health include: Balanced General Fund budget Strong General Fund reserve fund Making required pension contributions on time Public service levels meet or exceed standards of the community 19 20 June 4, 2025 11 Governmental Fund Balances Total FundsAll Other FundsGeneral FundCategory $ 22,698,506$ 500$ 22,698,006Non-Spendable 69,881,06364,214,4885,666,575Restricted 45,900,000-45,900,000Committed 70,304,510-70,304,510Assigned 61,117,815(4,098,801)65,216,616Unassigned $ 269,901,894$ 60,116,187$ 209,785,707Total $ 170,577Prepaid Costs 5,403,652Land held for resale 17,123,777RDA Loan $ 5,666,575Pension Trust 24,755,830Housing Funds 39,458,658Restricted Funds Governmental Fund Balances Total FundsAll Other FundsGeneral FundCategory $ 22,698,506$ 500$ 22,698,006Non-Spendable 69,881,06364,214,4885,666,575Restricted 45,900,000-45,900,000Committed 70,304,510-70,304,510Assigned 61,117,815(4,098,801)65,216,616Unassigned $ 269,901,894$ 60,116,187$ 209,785,707Total $ 15,000,000Natural Disaster 13,000,000Economic Disaster 5,000,000Cash Flow Reserve 12,000,000Capital Replacement 900,000Operational Carryovers $ 15,652,616Fire Services 32,985,374Sales Tax (Measure G) 21,666,520Capital Projects 21 22 June 4, 2025 12 Long-Term Debt 20242023Debt Type $91,795$ 53,111Leases -551Financed Purchases 1,185,5971,154,090Compensated Absences 282,309495,674Subscription IT Liabilities $1,559,701$1,703,426Total $ 6,540,000Irrevocable Section 115 Pension Trust 3,709,73819/20 Contribution & Interest Earnings 1,132,18420/21 Interest Earnings (Gain) (1,244,034)21/22 Interest Earnings (Loss) (4,820,401)22/23 Payment & Interest Earnings 349,08823/24 Interest Earnings (Gain) $5,666,575Total Trust Balance Major Infrastructure Investments Dune Palms Bridge Improvements $11,475,000 Avenue 50 Pavement Rehabilitation $2,605,000 Fred Waring Drive Pavement Rehabilitation $2,444,000 Citywide Pavement Management Plan $1,830,000 Citywide Landscape Renovation Improvements $1,290,000 23 24 June 4, 2025 13 Fiscal Sustainability Adopted a balanced 2024/25 budget Continue to address long-term liabilities Mixture of housing and commercial developments are under construction Long-term vision and planning are a priority Discussion & Questions 25 26 June 4, 2025 14 Financial Advisory Commission Special Meeting 6/4/2025 Business Item No. 3 Receive and File Third Quarter Fiscal Year 2024/25 Treasury Reports for January, February, and March 2025 Quarter Three Results Total Interest Received Average Days to Maturity Yield To Maturity Annualized Total Rate of Return January 566,704$ 586 3.75% 3.85% February 685,819$ 572 3.76% 3.49% March 1,064,767$ 575 3.66% 3.91% Quarter 3 2,317,290$ 578 3.72% 3.75% Quarter 2 2024/25 1,730,016$ 616 3.66% 3.76% Quarter 1 2024/25 1,998,617$ 572 3.82% 3.87% 27 28 June 4, 2025 15 Portfolio Returns & Treasury Rates Maturity Range 29 30 June 4, 2025 16 Interest Allocation 22/23 Actual 2,865,841$ 23/24 Actual 5,467,129$ 24/25 Budget 3,500,000$ 24/25 Proposed Revised Budget 6,400,000$ 25/26 Proposed Budget 5,785,000$ General Fund Allocated Interest - Approx. 68% of Total Interest Rolled off so far 24/25 Average Coupon Roll-offs Coupon Cash Flow Average Coupon New Purchases New Coupon Cash Flow Variance 27,404,000$ 1.62%444,219$ 3.93%1,078,073$ 633,855$ Rolling Off Next 12 Months Average Coupon Roll-offs Coupon Cash Flow Average Coupon New Purchases New Coupon Cash Flow Variance 28,376,000$ 1.67% 341,015$ 3.59%1,023,479$ 682,464$ Itlaicized numbers are estimates Cash Flow for 25/26 assumes a 5-yr treasury rate of 3.9% thru July 2025, 3.80% thru Sept 2025, 3.60% thru Dec. 2025, 3.50% thru March 2026 and 3.25% thru May 2026 Q1 Q2 Q3 Q4 1,998,617$ 1,730,016$ 2,317,290$ 3,434,227 Q4 Tracker - includes CAMP TERM2,719,565 LAIF estimate 225,000 CAMP estimate 302,021 BMO MM estimate 187,641 Interest from Treasurer Reports Total of $9.48 million, of which about $6.45 would be allocated to the GF FY 2024/25 Projection Basis 31 32 June 4, 2025 17 Uncertain Environment 1-yr Treasury Rates 33 34 June 4, 2025 18 5-yr Treasury Rates Financial Advisory Commission Special Meeting 6/4/2025 Business Item No. 4 Discuss Fiscal Year 2025/26 Preliminary Proposed Budget and Approve Allocation of Measure G Sales Tax Revenue 35 36 June 4, 2025 19 Discussion Topics General Fund Update Special Funds Capital Improvement Fund General Fund Update 37 38 June 4, 2025 20 Special Funds • Gas Tax Fund • Lighting and Landscape Fund • Finance Authority Fund • Library & Museum Fund • Measure A Fund • Development Impact Fee (DIF) Funds Capital Improvement Plan 2025/26 through 2029/30 CIP Plan discussed on April 1, 2025 Focus on transportation and parks & facilities projects 2025/26 Summary Funding Amount Capital Projects 25,193,033$ Landscape Improvements (500,000) Developer Reimbursements (400,000) TOTAL 24,293,033$ 39 40 June 4, 2025 21 Discussion & Questions June 11 Housing Commission Final Review of Housing Budget June 17 City Council Final Budget Adoption The next Financial Advisory Commission Meeting will be on September 11, 2025 41 42 June 4, 2025 22 43