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2025 05 07 FAC MinutesFINANCIAL 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. 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