2024/25 Measure G Sales Tax Annual ReportCONSENT CALENDAR ITEM NO. 6
City of La Quinta
CITY COUNCIL MEETING: December 16, 2025
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2024/25 MEASURE G SALES
TAX COMPLIANCE REPORT
RECOMMENDATION
Receive and file fiscal year 2024/25 Measure G Sales Tax Compliance Report.
EXECUTIVE SUMMARY
• Measure G revenue for fiscal year (FY) 2024/25 was $15,638,218 and the Measure
G reserve balance as of June 30, 2025 was $29,623,592.
• The Financial Advisory Commission (Commission) provides oversight of Measure G
revenue and prepares an annual Measure G Sales Tax Oversight Report (Report)
to ensure Measure G revenue is used in compliance with the ballot initiative.
• At its special meeting on December 3, 2025, the Commission unanimously and
formally received and filed the Report.
FISCAL IMPAC i — None
BACKGROUND/ANALYSIS
In accordance with the Measure G ballot measure, the Commission provides oversight of
Measure G funds. This Report was prepared by the Finance Department with assistance
from Commission members (Commissioners Anderson and Mast). The Report was
presented, received, and filed at a special Commission meeting on December 3, 2025;
and will be posted to the City's website.
The Report for FY 2024/25 (Attachment 1) covers the period from July 1, 2024, through
June 30, 2025, and provides a summary of the Measure G revenue and expenditures for
the FY, as well as an inception -to -date summary.
ALTERNATIVES
Council may request additional information before filing this Report.
Prepared by: Claudia Martinez, Finance Director/City Treasurer
Approved by: Jon McMillen, City Manager
Attachment:
1. Annual Measure G Sales Tax Oversight Report for Fiscal Year -Ended June 30, 2025
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ATTACHMENT 1
CITY OF
LA QUINTA
Annual Measure G Sales Tax Oversight Report
Fiscal Year Ended June 30, 2025
California
THIS PAGE INTENTIONALLY LEFT BLANK
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ANNUAL MEASURE G SALES TAX OVERSIGHT
REPORT FOR FISCAL YEAR ENDED JUNE 30, 2025
OVERVIEW
The Financial Advisory Commission (FAC) provides oversight of Measure G tax revenue. This
Annual Measure G Sales Tax Oversight Report covers the fiscal year beginning July 1, 2024,
through June 30, 2025. Exhibit A includes a detailed summary of all Measure G activity.
Measure G is a 1 % transactions tax applied to sales of taxable goods and is part of the overall
8.75% sales tax rate in the City. It applies to goods transferred at the point of sale (businesses
within La Quinta City limits), and to goods purchased in other jurisdictions that are delivered to
addresses within the City.
Measure G revenue continues to help La Quinta thrive and remains essential to the City's long-
term financial health. These funds support the realization of La Quinta's Sacred Values — Fiscal
Sustainability, Health and Wellness, a Vibrant and Safe Community, a Visually Beautiful City,
and Cultural Diversity — ensuring that our community continues to shine as "The Gem of the
Desert," now and for generations to come.
Fritz Burns Park Improvements
Highway 111 Pavement Rehabilitation
REPORT HIGHLIGHTS
Fiscal Year 2024/25
• Revenue from Measure G totaled approximately $15.6 million, which is slightly above
the budgeted amount of $15.5 million and consistent with the prior fiscal year's revenue
of $15.5 million, reflecting stable performance year over year.
• An allocation of $12.2 million went towards citywide infrastructure and public
recreational facility improvements, creating lasting assets for public use and enjoyment.
• The City invested $7.3 million in public safety services, which continues to be a top
priority for La Quinta.
• Approximately $4 million of Measure G reserves was utilized for capital improvement
projects, bringing the total reserve balance to $29.6 million. These reserves are
intentionally maintained to ensure long-term financial stability and to provide flexibility
during economic downturns.
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Since Inception
• $108 million in total Measure G funds has been collected, and the City continues to
utilize these funds in alignment with the original intent of Measure G.
• Approximately $45 million or 42% of Measure G funds have been allocated to improving
citywide infrastructure and public recreational facilities.
• Public safety services are a priority of La Quinta and have been supported with
approximately $33.2 million or 31 % of Measure G funds.
• Fiscally responsible budgeting, prudent long-term financial projections, funds oversight,
and financial transparency have strengthened the City's reserves with Measure G funds
since the implementation of Measure G in April 2017. These practices have supported
the City's strong fiscal standing, reflected in its top ranking on the California Policy
Center's Local Fiscal Health Dashboard.
FISCAL YEAR 2024/25 REVENUES
Total Measure G sales tax revenue for fiscal year FY 2024/25 was $15.6 million, which was
slightly higher than the $15.5 million initially anticipated when budgeted, reflecting stable
performance and continued fiscal resilience despite broader economic headwinds. Revenue
trends remained steady through FY 2024/25, with overall receipts showing modest year -over -
year growth. While certain consumer sectors such as restaurants and online retail performed
well, spending on goods and construction activity softened as households maintained cautious
spending patterns.
REVENUES SINCE INCEPTION
The chart below summarizes Measure G revenue received from fiscal years 2016/17 through
2024/25. Measure G sales tax revenue for FY 2024/25 was slightly above initial projections,
reflecting continued stability in local economic activity. While spending patterns remain
cautious, recent reductions in federal interest rates have generated optimism for improved
financing conditions and potential boosts in consumer confidence. However, ongoing national
tariff discussions and persistent inflationary pressures continue to influence household
spending power, contributing to a period of modest growth as the broader economy adjusts to
changing market conditions. Staff will closely monitor these trends and adjust projections as
needed to ensure prudent financial planning for the years ahead.
$20
$15
c
$10
$5
$-
REVENUES SINCE INCEPTION
$108 MILLION
III
1
16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25
Fiscal Year
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FISCAL YEAR 2024/25 USEf
Operational expenses and capital improvements for FY 2024/25 were prioritized, with
approximately $12.2 million in Measure G funds allocated toward Capital Improvement Projects
citywide and $7.3 million allocated to public safety. To support these priorities, about $4 million
in Measure G reserves were utilized. No additional revenue was set aside for reserves this
fiscal year, as the focus remained on advancing key infrastructure, facility, and community
enhancement projects that align with the City's long-term strategic goals.
USES SINCE INCEPTION
Annually, the City hosts a community workshop to either affirm and/or redirect the following
year's budget priorities. Staff then evaluates funding options such as grants, interagency cost
sharing, and use of reserves. Public safety services have been a community priority since
before Measure G, and with the support of this additional revenue, the City has been able to
maintain the public safety service levels the community desires.
The chart below summarizes the uses since the inception of Measure G funds. Approximately,
$45 million, or 42% of these funds are for projects to improve citywide infrastructure and public
recreational facilities.
USES SINCE INCEPTION
$108 MILLION
Reservesll
$30M
Recreation
$12M
Public Safety
$33M
Infrastructure
Improvements
$33M
• Public Safety use reflects the City's continuing commitment to providing all residents
with a safe living environment.
• Infrastructure improvement projects have included numerous road repairs to extend
their useful life, street striping projects, drainage improvements to avoid street flooding,
an investment in Highway 111 (a crucial commercial corridor for our City where a
majority of sales taxes are generated), an overhaul of landscape medians north of
Highway 111, the design of an updated corporate yard with administrative and crew
quarters, and Welcome Center improvements for city -owned property located near the
entrance to the Bear Creek Trail on Eisenhower Drive and Calle Tampico.
• Recreation projects have included funding for the new X-Park near La Quinta High
School, the SilverRock event site, design of a new future Village Art Plaza Promenade
& Cultural Campus connected to the La Quinta Museum, Fritz Burns Park
improvements, citywide dog park improvements, and the Sports Complex lighting
replacement.
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• Measure G reserves reflect fiscal responsibility and allow for operational flexibility by
ensuring cash is available for public safety services and capital improvement projects
when they are most efficient to complete.
The chart below summarizes citywide infrastructure improvements and recreational projects,
totaling about $45 million funded with Measure G revenues.
Infrastructure Improvements and Recreational
Projects
Public Safety
Camera System
Highway 111
Roads/Bridges
Drainage
Parks
Landscaping
City Facilities/Other
$1.8M
$4.1M
$3.4M
$7.3M
$6.5M
$9.8M
$12.4M
$0 $2 $4 $6 $8 $10 $12 $14
Millions
LOOKING AHEAD
As La Quinta continues to navigate shifting economic conditions, Measure G remains essential
to the City's ability to sustain core services and invest in community priorities. While the broader
economy is showing cautious optimism following recent reductions in federal interest rates,
ongoing tariff discussions and inflationary pressures continue to shape household spending
and local sales trends.
Looking forward, the City will continue to strategically invest Measure G funds in projects that
strengthen infrastructure, enhance public safety, and improve quality of life, while maintaining
a disciplined and transparent approach to financial management.
Key areas of focus include:
• Critical electrical and utility infrastructure upgrades to improve system reliability,
capacity, and safety- including enhancements to energy gridlines and transformers that
reduce fire risk and ensure home security systems and essential services remain online.
• Public safety facilities and technology investments to ensure continued community
protection
• Roadway, bridge, and transportation improvements supporting connectivity and safety
• Revitalization of the Highway 111 Corridor and enhancement of public spaces that
promote economic vitality and community pride
These efforts demonstrate La Quinta's commitment to fiscal sustainability, proactive planning,
and resident -centered investment. Measure G funding remains a cornerstone of this
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commitment, preserving the City's financial strength and enabling La Quinta to uphold its
Sacred Values of Fiscal Sustainability, Health and Wellness, a Vibrant and Safe Community, a
Visually Beautiful City, and Cultural Diversity, ensuring that our community continues to shine
as "The Gem of the Desert" for generations to come.
MEASURE G BACKGROUND AND COMPLIANCE SUMMARY
Voters approved Ballot Measure G in November 2016, establishing a permanent one percent
(1 %) transactions and use tax effective April 1, 2017. All Measure G revenues are fully
allocated to the City of La Quinta and are protected from State takeaways.
Measure G revenues are used in accordance with the voter -approved ballot measure to fund
essential services and community priorities, including:
• Public safety, such as police protection
• Capital improvement projects, including parks, streets, landscaping, and flood mitigation
• Community programs that attract businesses, support youth and senior services,
enhance sports and recreation opportunities
• Preservation of property values and quality of life for residents
This report confirms that all Measure G tax revenues are properly recorded and are being used
in full compliance with the requirements outlined in the ballot measure.
The City Council, management, and staff express their sincere appreciation to La Quinta
residents for their continued support and investment in maintaining the City's long-term
financial sustainability and outstanding community character.
Prior oversight reports and information on Measure G are located online at
https://www.laquintaca.gov/business/tax-measure. Questions regarding this report or the use
of Measure G funds may be directed to the Finance Department by calling 760-777-7000 or by
email at finance@laquintaca.gov.
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MEASURE G
REVENUE AND USES SUMMARY
FY 2024/25
EXHIBIT A
Fiscal Year (FY)
REVENUE SUMMARY
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
TOTAL
1,462,650
9,967,657
10,958,118
10,310,526
12,594,389
15,615,802
16,088,087
15,471,183
15,638,218
108,106,630
MEASURE G USES- Historical
Fiscal Year
Project Description
Operational
Capital
Reserves
Total by Year
2016/17-2021/22
Total Operational- Public Safety
Total Capital- Various
15,708,000
29,846,099
15,355,043
MEASURE G USES- Prior 3 Fiscal Years
2022/23 Public Safety Contract Services
Landscape Renovation Improvements
Sports Complex Lighting Replacement
Village Utilities Undergrounding Project
ADA Transition Plan Update
Village Parking Lot
Phase II Public Safety Camera System
Smart Infrastructure Improvements- Feasibility
Highway 111 Corridor Area Plan Implementation
Dune Palms Bridge Advance Funding Reimbursement
Measure G Reserves 2022/23
5,100,000
500,000
300,000
100,000
150,000
500,000
1,797,000
250,000
1,000,000
(7,468,061)
13,859,148
16,088,087
2023/24 Public Safety Contract Services
Highway 111 Corridor Area Plan Implementation
Avenue 48 Art & Music Line
Fritz Burns Park Improvements
Highway 111 Event Site- Reprogrammed to Fritz Burns Park, see FY 2024/25
Washington St. Connector to Arts & Music Line
Measure G Reserves 2023/24
5,100,000
1,000,000
2,400,000
1,500,000
1,200,000
4,271,183
15,471,183
2024/25 Public Safety Contract Services
Pavement Management Plan Street Improvements
Corporate Yard Administration Offices & Crew Quarters
Village Art Plaza Promenade & Cultural Campus
Highway 111 Corridor Area Plan Implementation
Fritz Burns Park Improvements
Citywide Dog Park Improvements
Welcome Center Improvements
Measure G Reserves 2024/25
7,300,000
1,000,000
900,000
1,000,000
3,050,000
5,000,000
500,000
750,000
(3,861,782)
15,638,218
TOTAL
$ 33,208,000 $ 45,275,038 $ 29,623,592 $
31% 42% 27%
108,106,630
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