CC Resolution 2025-017 Budget & Appropriations FY 2025-26RESOLUTION NO. 2025 – 017
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, ESTABLISHING THE CITY’S
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025/26
AND APPROVING A BUDGET FOR FISCAL YEAR
2025/26
WHEREAS, each year the La Quinta City Council adopts a budget for Revenues
and Expenditures for the upcoming Fiscal Year; and
WHEREAS, the City Council desires to make provisions for a level of services
commensurate with the needs of the City; and
WHEREAS, the City Council has reviewed said budget and capital improvement
program and has had several public meetings to receive public input; and
WHEREAS, the City Council has, after due deliberation and consideration, made
such amendments in the proposed budget and capital improvement program as it
considers desirable; and
WHEREAS, Section 7910 of the Government Code of the State of California
provides that each year the governing body of each local jurisdiction shall, by resolution,
establish its appropriations limit for the following fiscal year; and
WHEREAS, Section 7902(b) of the Government Code sets forth the method for
determining the said appropriations limit, to be based upon the limit applicable for the
prior fiscal year and adjusted for changes in the cost-of-living and in City population.
NOW, THEREFORE, BE IT RESOLVED by the City of La Quinta to adopt, as
follows:
SECTION 1. The appropriations limit for the City of La Quinta established in
accordance with Section 7902(b) of the California Government Code, for Fiscal Year
2025/26 is $188,994,165 (Exhibit A).
SECTION 2. It is hereby found and determined that in compliance with
Government Code Section 7910, the documentation used in the determination of said
appropriations limit for Fiscal Year 2025/26 was available to the public in the Finance
Department of the City and in the Office of the City Clerk at least fifteen days prior to this
date.
SECTION 3. The Fiscal Year 2025/26 budget and capital improvement program
which is on file with the City Clerk is hereby approved.
Resolution No. 2025 – 017
Budget Approval FY 2025/26
Adopted: June 17, 2025
Page 2 of 3
SECTION 4. Continuing Appropriations which remain unspent and were
authorized by Council in Fiscal Year 2024/25 are approved in the Fiscal Year 2025/26
budget in an amount not to exceed $3,054,200 (Exhibit B).
SECTION 5. Budget adjustment procedures are approved as follows:
A. Additional appropriations and the transfer of cash or unappropriated fund
balance from one fund to another shall be made only upon City Council
approval.
B. Transfers of budgeted appropriations between funds or capital projects shall
be made only upon City Council approval.
C. Transfers of budgeted appropriations between accounts within a department or
capital project may be made with the approval of the City Manager or his
designee.
D. Prior year budget continuing Appropriations and Encumbrances for
unexpended capital project and grant appropriations remaining from
uncompleted prior year capital projects and grant programs shall be made with
City Manager approval. These carry-over appropriations are for prior year
Council approved capital projects and shall not exceed the approved project
budget.
SECTION 6. The City Council, recognizing the need for maintaining Fund Balance
reserves has established a Reserve Policy. These funds cannot be appropriated without
the explicit approval of the City Council. Exhibit C General Fund Reserves Overview
shows estimated amounts, final amounts will be published in the Fiscal Year 2024/25
Annual Comprehensive Financial Report (ACFR).
SECTION 7. The City Manager shall render a monthly report to the City Council
on the status of City operations as it relates to the approved budget and any amendments
thereto.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City
Council held on this 17th day of June 2025, by the following vote:
AYES: Councilmembers Fitzpatrick, McGarrey, Peña, Sanchez, and Mayor Evans
NOES: None
ABSENT: None
ABSTAIN: None
Resolution No. 2025 -017
Budget Approval FY 2025/26
Adopted: June 17, 2025
Page 3 of 3
ATTEST:
MONIKA RAD VA, . y Clerk
City of La Quinta, California
APPROVED AS TO FORM:
�� LINDA EVANS, Mayor
City of La Quinta, California
{&!_; tt,;_"li I �---WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
City of La Quinta
Gann Limit Appropriations Calculation
FY 2025/26
(1)(2)(3)(4) (5)(6)(7)(8)(9)
($)City's City's U.S. CPI % Change in Local % Change ($)($)
Prior Year Previous Year's Current Year's Population Annual Non-Residential In Per Current Year Compliance
Year Gann Limit Population Population % Change % Change Construction Capita Income Gann Limit Amounts
92-93 14,240,507 12,932 14,840 14.80% N/A 0.68%-0.64% 16,452,801 4,452,292
93-94 16,452,801 14,840 15,693 5.75% N/A 0.16%2.72% 17,871,744 5,301,754
94-95 16,452,801 15,693 16,634 6.00% N/A 0.14%0.71% 19,077,886 6,561,880
95-96 19,077,886 16,634 17,101 2.81% N/A N/A 4.72% 20,539,255 7,762,496
96-97 20,539,255 17,101 18,045 5.52% N/A N/A 4.67% 22,685,183 8,257,148
97-98 22,685,183 18,045 19,217 6.49% N/A N/A 4.67% 25,286,762 9,667,831
98-99 25,286,762 19,217 20,444 6.38% N/A N/A 4.15% 28,017,719 12,222,332
99-00 28,017,719 20,444 21,763 6.45% N/A N/A 4.53% 31,176,447 9,801,749
00-01 31,176,447 21,763 24,240 10.77% N/A N/A 4.91% 36,229,777 10,785,551
01-02 36,229,777 24,240 26,321 12.66% N/A N/A 7.82% 44,008,314 12,181,391
02-03 44,008,314 26,321 28,715 10.52% N/A N/A -1.27% 48,020,286 14,233,708
03-04 48,020,286 28,715 30,452 5.99% N/A N/A 2.31% 52,072,415 14,547,338
04-05 52,072,415 30,452 32,522 5.90% N/A N/A 3.28% 56,953,433 16,507,192
05-06 56,953,433 32,522 36,145 9.19% N/A N/A 5.26% 65,458,514 22,777,443
06-07 65,458,514 36,145 38,340 5.40% N/A N/A 3.96% 71,725,407 27,384,580
07-08 71,725,407 38,340 41,092 6.44% N/A N/A 4.42% 79,718,951 32,163,100
08-09 79,718,951 41,092 42,743 4.46% N/A N/A 4.29% 86,846,889 33,562,980
09-10 86,846,889 42,743 43,778 2.42% N/A N/A 0.62% 89,500,065 33,519,652
10-11 89,500,065 43,778 37,307 (1)1.35% N/A N/A -2.54% 88,404,325 30,055,388
11-12 88,404,325 37,307 37,836 (1)1.42% N/A N/A 2.51% 91,910,124 29,884,568
12-13 91,910,124 37,688 38,075 (2)1.03% N/A N/A 3.77% 96,357,500 31,954,838
13-14 96,357,500 38,190 38,412 0.55% N/A N/A 5.12% 101,848,105 33,412,900
14-15 101,848,105 38,412 39,032 1.61% N/A N/A -0.23% 103,249,837 35,982,642
15-16 103,249,837 39,032 39,694 1.72% N/A N/A 3.82% 109,037,717 37,391,100
16-17 109,037,717 39,694 39,977 1.69% N/A N/A 5.37% 116,834,735 39,339,800
17-18 116,834,735 39,977 40,677 (2)1.25% N/A N/A 3.69% 122,660,261 48,021,600
18-19 122,660,261 40,605 41,753 1.48% N/A N/A 3.67% 129,043,889 51,452,200
19-20 129,043,889 41,753 42,098 (2)0.83% N/A N/A 3.85% 135,124,379 56,851,900
20-21 135,124,379 40,389 40,660 (2)0.67% N/A N/A 3.73% 141,103,621 49,433,000
21-22 141,103,621 40,906 41,247 (2)0.83% N/A N/A 5.73% 150,427,126 57,775,110
22-23 150,427,126 37,949 37,860 (2)-0.23% N/A N/A 7.55% 161,412,270 67,321,000
23-24 161,412,270 37,562 37,979 (2)1.11% N/A N/A 4.44% 170,450,479 75,918,000
24-25 170,450,479 37,824 38,370 (2)1.44% N/A N/A 3.62% 179,170,357 78,469,200
25-26 179,170,357 39,148 38,796 (2)-0.90% N/A N/A 6.44% 188,994,165 85,746,154
(1) The population for FY 2010/2011 and FY 2011/2012 are adjusted to the Federal 2010 Census counts.
(2) The previous population is furnished by the Department of Finance.
The Shaded boxes indicate the calculation factor that was used to calculate that year's Gann Limit.
The Gann Limit is adjusted annually by multiplying the "Prior Year Gann Limit" (column 1) by the "% Change in Population" (column 4) and then by the greater of the "%
Change in New Local Non-residential Construction or % Change in California Per Capita Income" (column 6 or 7). This Gann adjustment figure is then added to the prior
year's limit amount to obtain the current year Gann limit amount in column 8. The U.S. CPI factor (column 5) was used in place of the non-residential construction (column 6)
amount and the lower of the two factors, the U.S. CPI or Per Capita Income, for the calculation prior 'to FY 1990-91. The City has elected in column (2) and (3) to use the
City population method versus the change in County population.
CITY OF LA QUINTA
(Page 1 of 2)
RESOLUTION NO. 2025-017
EXHIBIT A
Adopted: June 17, 2025
FY 2025/26 ADOPTED BUDGET
(Page 2 of 2)
In 1979, Proposition 4, the "Gann" initiative, was passed. The Proposition created Article XIIIB of the State Constitution placing limits on the amount of
revenue which can be spent by all entities of Government.
The Gann limit is adjusted annually by the following two factors:
Annual population change and the greater of the change in:
1) State Per Capita Income, or
2) The Local Assessment roll for local non-residential construction.
When a City reaches this limit, excess tax revenue must be returned to the State or Citizens through a process of refunds, rebates, or other means that
may be defined at that time. The Gann limit for the City of La Quinta has increased steadily since 1984 and still provides the City with a comfortable
operating margin. The revenue collection and spending limit for City of La Quinta FY 2025/26 is $188.9 million. "Proceeds of taxes" are projected to
be $85.7 million in FY 2025/26 allowing the City a margin of $103.2 million.
On the graph below, the highest bars represent the spending limit and the lower bars represent the appropriation of proceeds of taxes for fifteen years.
42098 0
18-19 0 40605 41204 1.48% N/A N/A 3.67%
GANN APPROPRIATIONS LIMIT ANALYSIS
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26
CITY OF LA QUINTA
SPENDING LIMIT VERSUS APPROPRIATION OF PROCEEDS OF TAXES
Spending Limit Appropriation of Proceeds of Taxes
CITY OF LA QUINTA
Description/Program Account Number Account Name Estimated
Fiscal analysis for citywide projects 101-1002-60510 Contingency for Operations 200,000$
Marketing efforts to attract group business to hotels 101-1007-60536 TOT Resort Rebate Program 450,000$
Fire ladder truck purchase 101-2002-80101 Machinery & Equipment 400,000$
$ 1,050,000
Tree maintenance 215-7004-60673 Tree Maintenance/Palm Trees $ 500,000
Dune Palms Mobile Estates improvements 241-9104-72110 Building/Site Improvements $ 430,000
Homelessness Assistance Programs 243-0000-60532 Homelessness Assistance $ 49,200
Vehicle upgrades 501-0000-60675 Parts, Accessories and Upfits $ 75,000
Painting/repairs 501-0000-71103 City Bldg. Replacement/Repair $ 150,000
Audio visual upgrades for meeting rooms 502-0000-80100 Machinery & Equipment $ 200,000
Aging inventory upgrades 502-0000-80103 Computers $ 100,000
Park supplies and upgrades 503-0000-71060 Parks $ 500,000
$ 2,004,200
$ 3,054,200
ESTIMATED
General Fund (101)1,050,000$
Lighting & Landscape Fund (215)500,000$
Housing Authority Fund (241)430,000$
RDA Low-Mod Fund (243)49,200$
Facility & Fleet Replacement Fund (501)225,000$
Information Technology Fund (502)300,000$
Park Equipment & Facility Fund (503)500,000$
3,054,200$ TOTAL CARRYOVERS BY FUND
Continuing Appropriations/Carryovers from 2024/25 to 2025/26
GENERAL FUND CARRYOVERS
SPECIAL FUNDS CARRYOVERS
TOTAL CARRYOVERS FOR ALL FUNDS
NOTE: In June 2025 when the budget is adopted, all carryovers are estimates based on projected invoices to end fiscal year
2024/25. Upon completion of the final audit, Finance verifies account balances and makes additional carryover recommendations
based on current budgetary needs.
CARRYOVER TOTALS BY FUND
CITY OF LA QUINTA
RESOLUTION NO. 2025-017
EXHIBIT B
Adopted: June 17, 2025
FY 2025/26 ADOPTED BUDGET
ESTIMATED COMMITTED & UNASSIGNED
FUND BALANCE
ESTIMATED AT
6-30-2025
LOAN PAYMENT
TO GENERAL
FUND FROM
SUCCESSOR
AGENCY
OPERATING
SURPLUS
/(SHORTFALL)
ESTIMATED AT
6-30-2026
NATURAL DISASTER 15,000,000$ 15,000,000$
ECONOMIC DISASTER 13,000,000$ 13,000,000$
CASH FLOW 5,000,000$ 5,000,000$
CAPITAL REPLACEMENT 12,000,000$ 12,000,000$
UNAPPROPRIATED 55,000,000$ 2,860,747$ $ 20,066 57,880,813$
TOTAL ESTIMATED RESERVES 100,000,000$ 2,860,747$ $ 20,066 102,880,813$
SUMMARY
RESERVES 6/30/25 100,000,000$
NET CHANGE 2,880,813$
RESERVES 6/30/25 102,880,813$
CALCULATION FOR FORMER REDEVELOPMENT AGENCY LOAN REPAYMENT
FY 2025/26 Approved Repayment
Fund Total Repayment Distribution % Distribution $
General Fund 3,575,934$ x 80% =2,860,747
Housing Fund 3,575,934$ x 20% =715,187
3,575,934$
ESTIMATED ASSIGNED
FUND BALANCE
ESTIMATED AT
6-30-2025 ADDITIONS DELETIONS
ESTIMATED AT
6-30-2026
SALES TAX (MEASURE G)29,400,000$ -$ (600,000)$ 28,800,000$
PUBLIC SAFETY FIRE SERVICE TRUST 17,000,000$ -$ -$ 17,000,000$
CARRYOVERS AND CAPITAL PROJECTS
(GENERAL FUND ONLY)36,250,000$ -$ -$ 36,250,000$
PENSION TRUST FUND 5,900,000$ 200,000$ -$ 6,100,000$
OTHER POST EMPLOYMENT BENEFITS
TRUST FUND 2,100,000$ 40,000$ -$ 2,140,000$
TOTAL ASSIGNED RESERVES 90,650,000$ 240,000$ (600,000)$ 90,290,000$
CITY OF LA QUINTA
GENERAL FUND RESERVES OVERVIEW
Based on Proposed Budget for 2025/26
ESTIMATED FOR 6-30-2026
Net change, $2,880,813
CITY OF LA QUINTA
RESOLUTION NO. 2025-017
EXHIBIT C
Adopted: June 17, 2025
FY 2025/26 ADOPTED BUDGET