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2025 06 04 FAC Special MeetingFINANCIAL ADVISORY COMMISSION Page 1 of 4 JUNE 4, 2025 SPECIAL MEETING – MINUTES FINANCIAL ADVISORY COMMISSION SPECIAL MEETING MINUTES WEDNESDAY, JUNE 4, 2025 CALL TO ORDER A special meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 3:32 p.m. by Vice Chair Anderson. PRESENT: Commissioners Anderson, Batavick, Kiehl, Lee, Mast, and Way ABSENT: Chair Dorsey PLEDGE OF ALLEGIANCE Commissioner Batavick 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 Business Session Item No. 1 first, out of agenda order, before Announcements, Presentations, and Written Communications; the Commission concurred. BUSINESS SESSION >>> taken out of Agenda order 1. RECOMMEND COUNCIL APPROVAL OF FISCAL YEAR 2025/26 INVESTMENT POLICY Principal Management Analyst Hallick presented the staff report, which is on file in the Finance Department. MOTION – A motion was made and seconded by Commissioners Way/Batavick to recommend Council approval of fiscal year 2025/26 investment policy as presented. Motion passed: ayes – 6, noes – 0, abstain – 0, absent – 1 (Dorsey). ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1. RECOGNITION OF SERVICE FOR OUTGOING COMMISSIONER BATAVICK Staff commended Mr. Batavick for his dedicated public service, including his guidance and support to newly appointed Commissioners; noted he began his service in 2015 on the former Investment Advisory Board; provided an overview of his participation, FINANCIAL ADVISORY COMMISSION Page 2 of 4 JUNE 4, 2025 SPECIAL MEETING – MINUTES research, and efforts that led to the 2016 voter-approved Measure G, a 1% sales and use tax, to which Mr. Batavick’s contribution was imperative; and presented him with a plaque in gratitude and recognition of his commitment, exemplary service, and contributions to the La Quinta community. The Commission and former Commissioner Richard Mills expressed their gratitude for Mr. Batavick’s distinguished service and wished him luck in his future endeavors. Commissioner Batavick expressed appreciation for the opportunity to serve and reflected on the Commission’s accomplishments. CONSENT CALENDAR ITEMS 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 ITEM NO. 3: The Commission discussed the federal funding reimbursement process for the Dune Palms Bridge Improvements Project No. 2011-05. At the Commission’s request, staff explained the year-over-year differences in interest revenues; report format; and reinstatement of the Interest Allocation Fund in the report for comparison and consistency. MOTION – A motion was made and seconded by Commissioners Lee/Mast to approve the Consent Calendar as presented. Motion passed: ayes – 6, noes – 0, abstain – 0, absent – 1 (Dorsey). BUSINESS SESSION – Continued 2. RECEIVE AND FILE THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR YEAR ENDED JUNE 30, 2024 Finance Director Martinez presented the staff report, which is on file in the Finance Department. PRESENTER VIA TELECONFERENCE: Assurance Partner Ryan Domino with Lance, Soll & Lunghard, LLP (LSL) – provided a detailed presentation of the audit scope, process, and outcomes; reiterated the City received an unmodified opinion on the City’s financial statements; explained the audit finding related to the late submission of the FINANCIAL ADVISORY COMMISSION Page 3 of 4 JUNE 4, 2025 SPECIAL MEETING – MINUTES Single Audit, which resulted from timing constraints caused by the delay of the year ended June 30, 2023 audit. The Commission discussed overall audit processes, past audit performance, and ongoing corrective actions taken to address any prior year delays. Finance Director Martinez provided a comprehensive overview and key findings of the ACFR for fiscal year 2023/24. The Commission discussed the City’s strong financial position reflects consistent fiscal management by staff, the Commission, and Council; transition of auditing firms, to LSL from Eide Bailly, LLP, and overall performance; working through first-year onboarding challenges; ability for in-person collaboration with LSL staff; and importance of the audit team focusing on material issues. MOTION – A motion was made and seconded by Commissioners Batavick/Lee to receive and file the Annual Comprehensive Financial Report for the year ended June 30, 2024, as presented. Motion passed: ayes – 6, noes – 0, abstain – 0, absent – 1 (Dorsey). 3. RECEIVE AND FILE THIRD QUARTER FISCAL YEAR 2024/25 TREASURY REPORTS FOR JANUARY, FEBRUARY, AND MARCH 2025 Principal Management Analyst Hallick presented the staff report, which is on file in the Finance Department. Staff discussed providing a comparative graph to display portfolio performance alongside 1-year and 5-year treasury yields; and interest allocation trends and projected year-end interest earnings using Treasury rate forecasts. The Commission discussed the City’s sources for market and economic data, such as the University of California, Los Angeles (UCLA) Anderson Forecast, daily broker market updates, Federal Reserve data, economic indicators from The Conference Board, news articles, and monthly economic updates from PFM Asset Management a division of U.S. Bank. MOTION – A motion was made and seconded by Commissioners Kiehl/Lee to receive and file the third quarter fiscal year 2024/25 treasury reports for January, February, and March 2025 as presented. Motion passed: ayes – 6, noes – 0, abstain – 0, absent – 1 (Dorsey). 4. DISCUSS FISCAL YEAR 2025/26 PRELIMINARY PROPOSED BUDGET AND APPROVE ALLOCATION OF MEASURE G SALES TAX REVENUE Finance Director Martinez presented the staff report, which is on file in the Finance Department. FINANCIAL ADVISORY COMMISSION Page 4 of 4 JUNE 4, 2025 SPECIAL MEETING – MINUTES The Commission discussed the proposed budget; final expected figures; Measure G sales tax revenue and its impact on the budget; and fiscal year 2025/26 proposed budget will be presented to Council for adoption on June 17, 2025. MOTION – A motion was made and seconded by Commissioners Batavick/Way to approve allocation of Measure G sales tax revenue as presented. Motion passed: ayes – 6, noes – 0, abstain – 0, absent – 1 (Dorsey). STUDY SESSION – None DEPARTMENTAL REPORTS 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Staff provided updates on the upcoming interim audit, which will include internal control interviews; upcoming meetings for the Financial Projections Task Force; recent Budget Committee meeting; plans to schedule financial statement and audit training with LSL; and ongoing Boards and Commissions recruitment, including one vacancy on the Commission. COMMISSIONERS’ ITEMS - None ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Mast/Lee to adjourn this meeting at 5:50 p.m. Motion passed: ayes – 6; noes – 0; absent – 1 (Dorsey). Respectfully submitted, Amanda Guerrero, Commission Secretary City of La Quinta, California