HomeMy WebLinkAbout2026 02 11 FAC Special Meeting (2:30 mtg time)FINANCIAL ADVISORY COMMISSION 1 FEBRUARY 11, 2026
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, February 11, 2026,
commencing at 2:30 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. HIGHWAY 111 CORRIDOR SPECIFIC PLAN AND DEVELOPMENT CODE
PROJECT – PLANNING UPDATE
CONSENT CALENDAR
1. RECEIVE AND FILE SPECIAL MEETING MINUTES DATED
DECEMBER 3, 2025
2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
OCTOBER 31, 2025
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
NOVEMBER 30, 2025
BUSINESS SESSION
1. RECEIVE AND FILE THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR YEAR ENDED JUNE 30, 2025
DEPARTMENTAL REPORTS
1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES
2. SALES TAX UPDATE – THIRD QUARTER 2025 (JULY - SEPTEMBER)
FINANCIAL ADVISORY COMMISSION 2 FEBRUARY 11, 2026
SPECIAL MEETING
Dated: February 6, 2026 /s/Ellen Way
ELLEN WAY, Chairperson
Attest:
AMANDA GUERRERO, Commission Secretary
DECLARATION OF POSTING
I, Amanda Guerrero, Commission Secretary, do hereby declare that the foregoing
Agenda for the Commission meeting was published in accordance with the Brown Act
[Gov. Code § 54954.2] on the City’s website, accessible directly from the City’s home
page through the “Calendar/ Public Meetings” icon link, and posted at the City Hall bulletin
board, located near the entrance to the Council Chamber at 78495 Calle Tampico, La
Quinta, CA 92253, on February 6, 2026, which is freely accessible to members of the
public.
AMANDA GUERRERO, Commission Secretary
FINANCIAL ADVISORY COMMISSION Page 1 of 5 FEBRUARY 11, 2026
SPECIAL MEETING – AGENDA
FINANCIAL ADVISORY COMMISSION
AGENDA
CITY HALL COUNCIL CHAMBER
78495 Calle Tampico, La Quinta
SPECIAL MEETING
WEDNESDAY, FEBRUARY 11, 2026, AT 2:30 P.M.
Members of the public may listen to this meeting by tuning-in live via
www.laquintaca.gov/livemeetings; past meetings are available through the video archive via
www.laquintaca.gov/pastmeetings Closed captions in English and Spanish are available
to all users through this video streaming service.
CALL TO ORDER
Roll Call: Commissioners Anderson, Dorsey, Kiehl, Lee, Mast, Niblo, and Chair Way
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 [Gov. Code § 54954.2(b)].
CONFIRMATION OF AGENDA
ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS
1. HIGHWAY 111 CORRIDOR SPECIFIC PLAN AND DEVELOPMENT CODE PROJECT
– PLANNING UPDATE
Financial Advisory Commission agendas and staff
reports are now available on the City’s website at
www.LaQuintaCA/PublicMeetings.gov
FINANCIAL ADVISORY COMMISSION Page 2 of 5 FEBRUARY 11, 2026
SPECIAL MEETING – AGENDA
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
DECEMBER 3, 2025
7
2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
OCTOBER 31, 2025
11
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
NOVEMBER 30, 2025
17
BUSINESS SESSION
PAGE
1. RECEIVE AND FILE THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR YEAR ENDED JUNE 30, 2025
23
STUDY SESSION – None
DEPARTMENTAL REPORTS
PAGE
1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES
231
2. SALES TAX UPDATE – THIRD QUARTER 2025 (JULY - SEPTEMBER) 241
COMMISSIONERS’ ITEMS
ADJOURNMENT
*********************************
The next special meeting of the Commission will be held on April 8, 2026, 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 Commission meeting was
published in accordance with the Brown Act [Gov. Code § 54954.2] on the City’s website,
accessible directly from the City’s home page through the “Calendar/ Public Meetings” icon
link, and posted at the City Hall bulletin board, located near the entrance to the Council
Chamber at 78495 Calle Tampico, La Quinta, CA 92253, on February 6, 2026, which is
freely accessible to members of the public.
FINANCIAL ADVISORY COMMISSION Page 3 of 5 FEBRUARY 11, 2026
SPECIAL MEETING – AGENDA
DATED: February 6, 2026
Amanda Guerrero, Commission Secretary
City of La Quinta, California
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, CA 92253; and 2) on the
City’s website at www.laquintaca.gov/publicmeetings in accordance with the Brown Act
[Gov. Code §§ 54954.2, 54956, and 54957.5].
The La Quinta City Council Chamber is wheelchair accessible. If hearing assistance
equipment is needed, please contact the City Clerk’s office at (760) 777-7147, 24-hours
in advance of the meeting and accommodation 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 Finance@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). Only one person at a time may speak
and only after being recognized by the Chair.
FINANCIAL ADVISORY COMMISSION Page 4 of 5 FEBRUARY 11, 2026
SPECIAL MEETING – AGENDA
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.
Members of the public who utilize a translator shall be provided at least twice of the allotted
time to ensure non-English speakers receive the same opportunity to directly address the
Commission.
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 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 website 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 [Gov. Code § 7920.000
et seq.].
TELECONFERENCE ACCESSIBILITY – INSTRUCTIONS
Teleconference accessibility may be triggered in accordance with the Brown Act “during a
proclaimed state of emergency or local emergency,” as defined [Gov. Code § 54953.8.2]; or
if a member of the Commission requests to attend and participate in this meeting remotely
pursuant to any of the following: (1) “disability” [Gov. Code § 54953(c)], or (2) “just cause”
[Gov. Code § 54953.8.3], as defined. In such instances, remote public accessibility and
participation will be facilitated via the Zoom Webinar audio-visual platform as detailed at the
end of this agenda.
*** TELECONFERENCE AND TELEPHONIC PROCEDURES***
APPLICABLE ONLY WHEN TELECONFERENCE ACCESSIBILITY IS IN EFFECT
ZOOM LINK: https://us06web.zoom.us/s/88164609917
Meeting ID: 881 6560 9917
Or join by phone: (253) 215 – 8782
FINANCIAL ADVISORY COMMISSION Page 5 of 5 FEBRUARY 11, 2026
SPECIAL MEETING – AGENDA
VERBAL PUBLIC COMMENTS – members of the public may attend and participate in
this meeting by teleconference or telephonic accessibility via the Zoom Webinar audio-
visual platform and must activate the “Raise Hand” feature on their electronic devise (*9 for
telephonic participation) when public comments are prompted by the Chair, and will be
queued in consecutive order; the City will facilitate the ability for a member of the public to be
audible to the Commission and general public and allow them to speak on the item(s)
requested. Members of the public must unmute themselves via the “Audio” feature on
their electronic devise (*6 for telephonic participation) when prompted upon being
recognized by the Chair, in order to become audible to the Commission and the public .
WRITTEN PUBLIC COMMENTS can be provided either in person during the meeting or
emailed to Finance@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 Commission
Secretary can accommodate such request.
CLOSED CAPTION AND TRANSLATION
Closed Caption and Translation are accessible through the Zoom Webinar audio-visual
platform and accessible in real-time to all teleconference attendees. Members of the public
must activate the “Show Captions” feature on their device for closed caption; and may use
the “Options Arrow” to select from the list of available languages for translation.
*9 *6
6
FINANCIAL ADVISORY COMMISSION Page 1 of 4 DECEMBER 3, 2025
SPECIAL MEETING – MINUTES
FINANCIAL ADVISORY COMMISSION
SPECIAL MEETING
MINUTES
WEDNESDAY, DECEMBER 3, 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 Way.
PRESENT: Commissioners Anderson, Dorsey, Kiehl (joined the meeting via
teleconference at 4:00 p.m.), Lee, Mast, Niblo, and Chair Way
ABSENT: None
PLEDGE OF ALLEGIANCE
Commissioner Niblo 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
1.EXPANDING LA QUINTA’S ELECTRICAL CAPACITY UPDATE
City Manager McMillen provided a comprehensive update on the Imperial Irrigation
District’s (IID) electric supply and distribution system serving the Coachella Valley,
highlighting the current electric capacity conditions and rising demand for additional
capacity in La Quinta due to ongoing development; and noting the need for system
upgrades to ensure reliable service for existing and future customers.
Mr. McMillen reported that the City has been working collaboratively with IID, developers,
and Riverside County to create cost-sharing arrangements for the necessary substation
improvements; the most immediate priority is the Avenue 58 Substation, which requires
long-lead equipment purchases and can relieve power capacity constraints; developers’
requests for electrical capacity currently exceed available capacity, indicating a need to
secure equipment and move projects forward before the next peak demand season. Mr.
McMillen noted that on November 18, 2025, the IID’s Board of Directors approved two
agreements – (1) an Engineering and Procurement Agreement (for certain long lead-time
equipment to be paid by the City) and (2) Funding and Reservation of Capacity
Agreement for Avenue 58 Transformer Bank Addition, which will be presented to Council
for consideration at the December 16, 2025, regular meeting; IID may contribute to
upgrade costs depending on systemwide benefit; the City anticipates advancing funding
CONSENT CALENDAR ITEM NO. 1
7
FINANCIAL ADVISORY COMMISSION Page 2 of 4 DECEMBER 3, 2025
SPECIAL MEETING – MINUTES
for critical-path equipment to maintain project timelines, with reimbursement from
developers as capacity allocations are finalized; and the City’s participation in regional
coordination efforts, including the Coachella Valley Power Agency (CVPA) Joint Powers
Authority, aimed at long-term planning and improving regional control over energy
infrastructure.
General discussion followed related to IID’s cooperative role in the Coachella Valley,
temporary power arrangements for projects, strategies for future capacity planning, smart
home trends, solar production impacts, developer coordination, and the long-term
timeline for constructing new substations.
COMMISSIONER KIEHL JOINED THE MEETING VIA TELECONFERENCE AT
4:00 P.M.
CONSENT CALENDAR ITEMS
1.RECEIVE AND FILE SPECIAL MEETING MINUTES DATED
NOVEMBER 5, 2025
2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
SEPTEMBER 30, 2025
MOTION – A motion was made and seconded by Commissioners Anderson/Dorsey to
approve the Consent Calendar as presented. Motion passed unanimously
BUSINESS SESSION
1.RECEIVE AND FILE FISCAL YEAR 2024/25 MEASURE G SALES TAX
COMPLIANCE REPORT
Finance Director Martinez presented the staff report, which is on file in the Finance
Department.
The Commission discussed the ongoing use of Measure G revenues, reserve
considerations, and the long-term impact of funded projects.
MOTION – A motion was made and seconded by Commissioners Niblo/Mast to receive
and file fiscal year 2024/25 Measure G Sales Tax Compliance Report as presented.
Motion passed unanimously.
2. APPOINT TWO MEMBERS OF THE FINANCIAL ADVISORY COMMISSION TO
SERVE ON THE FISCAL YEAR 2026/27 GENERAL FUND OPERATING
BUDGET SUBCOMMITTEE (Subcommittee)
Finance Director Martinez presented the staff report, which is on file in the Finance
Department.
8
FINANCIAL ADVISORY COMMISSION Page 3 of 4 DECEMBER 3, 2025
SPECIAL MEETING – MINUTES
The Commission noted the Subcommittee offers newer members an opportunity to
understand the City’s budget process; discussed the Subcommittee’s meeting frequency
and the potential appointment of two or up to three Commissioners; and Commissioners
Niblo and Dorsey expressed their willingness to serve on the Subcommittee.
MOTION – A motion was made and seconded by Commissioners Lee/Mast to appoint
Commissioners Niblo and Dorsey to serve on the fiscal year 2026/27 General Fund
Operating Budget Subcommittee. Motion passed unanimously.
3. RECEIVE AND FILE FIRST QUARTER FISCAL YEAR 2025/26 TREASURY
REPORTS FOR JULY, AUGUST, AND SEPTEMBER 2025
Principal Management Analyst Hallick presented the staff report, which is on file in the
Finance Department.
The Commission discussed future expected earnings versus actual investment income;
differences in performance between City investment pools California Asset Management
Program (CAMP) and Local Agency Investment Fund (LAIF); the importance of
maintaining adequate reserves to manage fluctuations in investment income and
operational needs; the City’s ongoing monitoring of market conditions and Federal
Reserve actions; prudent management of cash and transitions between investment pools;
and considerations for prioritizing LAIF or alternative investment allocations.
MOTION – A motion was made and seconded by Commissioners Mast/Dorsey to receive
and file first quarter fiscal year 2025/26 Treasury Reports for July, August, and September
2025, as presented. Motion passed unanimously.
STUDY SESSION – None
DEPARTMENTAL REPORTS
1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES
Staff provided updates on ongoing and upcoming Finance Department initiatives,
including preparation of the Annual Comprehensive Financial Report (ACFR) for fiscal
year (FY) 2024/25; filing of the Measure A Local Streets and Roads Audit for FY 2024/25
with the Riverside County Transportation Commission; filing of the Annual Street and
Road Improvement Audit for FY 2024/25 with the State Controller’s Office; and the annual
development project fees reports – the Art in Public Places and Development Impact Fees
will be presented to Council at the December 16, 2025, regular meeting.
Staff reviewed major capital improvements such as the Dune Palms Bridge Improvements
Project and ongoing coordination with the Public Works Department to ensure compliance
with federal and state requirements.
9
FINANCIAL ADVISORY COMMISSION Page 4 of 4 DECEMBER 3, 2025
SPECIAL MEETING – MINUTES
The Commission recognized the Finance Department’s strong working relationship with
the City’s auditors, including proactive and timely communication throughout the audit
process; and discussed the California Society of Municipal Financial Officers Annual
Conference (CSMFO) will be held at the Palm Springs Convention Center, commending
Finance Director Martinez and Principal Management Analyst Hallick for being selected
as presenters.
Staff provided general updates on ongoing projects, including Imperial Irrigation District
(IID) coordination efforts; Federal Emergency Management Assistance (FEMA)
reimbursements related to Tropical Storm Hilary; and upcoming City events.
COMMISSIONERS’ ITEMS
Commissioner Lee expressed appreciation to Commissioner Kiehl for attending the
meeting while traveling internationally. The Commission acknowledged and thanked
Chair Way for her leadership in her new role as Chairperson.
ADJOURNMENT
There being no further business, it was moved and seconded by Commissioners
Dorsey/Mast to adjourn this meeting at 5:27 p.m. Motion passed unanimously.
Respectfully submitted,
Amanda Guerrero, Commission Secretary
City of La Quinta, California
10
City of La Quinta
FINANCIAL ADVISORY COMMISSION SPECIAL MEETING: February 11, 2026
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
OCTOBER 31, 2025
RECOMMENDATION
Receive and file revenue and expenditure report dated October 31, 2025.
EXECUTIVE SUMMARY
The report summarizes the City’s year-to-date (YTD) and month-to-date (MTD)
revenues and expenditures for October 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 2025 for fiscal year 2025/26.
Current Total Budget – represents original adopted budgets plus any Council
approved budget amendments from throughout the year. The 2024/25 operating and
Capital Improvement Project carryovers to 2025/26 will be processed after the year-
end audit is completed.
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. 2
11
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/City Treasurer
Attachment: 1. Revenue and Expenditure Report for October 31, 2025
MTD YTD
Percent of
Budget YTD
Percent of
Budget
General Fund (GF)3,693,392$ 8,298,161$ 9.00% 7,788,555$ 9.42%
All Funds 5,554,706$ 19,302,815$ 11.47% 12,441,955$ 7.92%
MTD YTD
Percent of
Budget YTD
Percent of
Budget
General Fund 4,259,790$ 13,911,791$ 14.99% 8,202,955$ 9.84%
Payroll (GF)937,179$ 3,642,883$ 23.92% 3,364,351$ 23.81%
All Funds 11,896,755$ 45,520,341$ 29.14% 34,072,021$ 23.36%
October 2025 Revenues Comparison to 2024
October 2025 Expenditures Comparison to 2024
General Fund Non-General Fund
Measure G Sales Tax 976,087$ Allocated Interest 663,565$
Transient Occupancy (Hotel) Tax 750,227$ SilverRock Green Fees 221,113$
Sales Tax 704,882$ Gas Tax 199,182$
Property Tax 642,546$ County Sales Tax (Measure A)144,901$
Document Transfer Tax 99,230$ Community Development Block Grant (CDBG)138,248$
General Fund Non-General Fund
Sheriff Contract (August)1,237,937$ Capital Improvement Program (CIP) - Construction(2)5,817,129$
Public Safety Camera System Maintenance 209,876$ Capital Improvement Program (CIP) - Design(3)330,990$
Membership Dues (1)168,991$ SilverRock Maintenance 214,539$
Parks Landscape Maintenance Contract 95,819$ Lighting & Landscape Maintenance Contract 133,083$
Visit Greater Palm Springs 86,309$ City Building Repairs 106,378$
Top Five Revenue/Income Sources for October
Top Five Expenditures/Outlays for October
(1)Coachella Valley Power Agency
(2)CIP Construction - Fritz Burns Park improvements and shade structures; Hwy 111 pavement.
(3)CIP Design - Avenue 50 bridge, drainage improvements, Washington/CV Link connector, Avenue 52/Jefferson roundabout, maintenance &
operations yard.
12
3DJHRI
City Council Month Revenue Report
'roup Summary
For Fiscal: 2025/26 Period Ending: 10/31/2025
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
ActivityFun…
Current
Total Budget
Original
Total Budget
Percent
Used
101 - GENERAL FUND 8,298,160.573,693,391.8292,242,254.00 92,242,254.00 -83,944,093.43 9.00%
105 - DISASTER RECOVERY FUND -5,164.700.00172,000.00 172,000.00 -177,164.70 3.00%
201 - GAS TAX FUND 472,821.45199,182.363,217,705.00 3,217,705.00 -2,744,883.55 14.69%
202 - LIBRARY & MUSEUM FUND -10,340.79732.504,420,000.00 4,420,000.00 -4,430,340.79 0.23%
203 - PUBLIC SAFETY FUND (MEASURE G)-178.200.006,000.00 6,000.00 -6,178.20 2.97%
210 - FEDERAL ASSISTANCE FUND 138,248.03138,248.03160,100.00 160,100.00 -21,851.97 86.35%
212 - SLESA (COPS) FUND 109,213.17109,869.94121,000.00 121,000.00 -11,786.83 90.26%
215 - LIGHTING & LANDSCAPING FUND 32,587.2314,099.543,862,100.00 3,862,100.00 -3,829,512.77 0.84%
221 - AB 939 - CALRECYCLE FUND 10,507.763,947.1491,000.00 91,000.00 -80,492.24 11.55%
223 - MEASURE A FUND 284,330.61144,901.131,900,000.00 1,900,000.00 -1,615,669.39 14.96%
226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG) 0.000.0010,000.00 10,000.00 -10,000.00 0.00%
227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)0.000.005,400.00 5,400.00 -5,400.00 0.00%
230 - CASp FUND, AB 1379 6,085.451,652.0024,000.00 24,000.00 -17,914.55 25.36%
231 - SUCCESSOR AGCY PA 1 RORF 12,784.621,656.7520,333,000.00 20,333,000.00 -20,320,215.38 0.06%
235 - SO COAST AIR QUALITY FUND -139.450.0057,000.00 57,000.00 -57,139.45 0.24%
237 - SUCCESSOR AGCY PA 1 ADMIN -184.150.0012,320.00 12,320.00 -12,504.15 1.49%
241 - HOUSING AUTHORITY 427,329.1395,779.161,666,000.00 1,666,000.00 -1,238,670.87 25.65%
243 - RDA LOW-MOD HOUSING FUND -4,495.490.00130,000.00 130,000.00 -134,495.49 3.46%
247 - ECONOMIC DEVELOPMENT FUND 14,977.747,430.00109,000.00 109,000.00 -94,022.26 13.74%
249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)24,596.560.0086,000.00 86,000.00 -61,403.44 28.60%
250 - TRANSPORTATION DIF FUND 159,506.1240,090.00579,000.00 579,000.00 -419,493.88 27.55%
251 - PARKS & REC DIF FUND 72,526.7521,060.00203,000.00 203,000.00 -130,473.25 35.73%
252 - CIVIC CENTER DIF FUND 42,883.6712,300.00160,000.00 160,000.00 -117,116.33 26.80%
253 - LIBRARY DEVELOPMENT DIF 13,954.003,970.0030,500.00 30,500.00 -16,546.00 45.75%
254 - COMMUNITY & CULTURAL CENTERS DIF 32,800.579,560.0095,000.00 95,000.00 -62,199.43 34.53%
257 - FIRE PROTECTION DIF 12,773.973,690.0051,000.00 51,000.00 -38,226.03 25.05%
259 - MAINTENANCE FACILITIES DIF FUND 12,265.083,130.0047,000.00 47,000.00 -34,734.92 26.10%
270 - ART IN PUBLIC PLACES FUND 30,900.2010,664.64181,000.00 181,000.00 -150,099.80 17.07%
299 - INTEREST ALLOCATION FUND 3,112,884.39663,565.130.00 0.00 3,112,884.39 0.00%
310 - LQ FINANCE AUTHORITY DEBT SERVICE 0.000.001,000.00 1,000.00 -1,000.00 0.00%
401 - CAPITAL IMPROVEMENT PROGRAMS 2,918,415.8636,481.2424,293,033.00 24,293,033.00 -21,374,617.14 12.01%
501 - FACILITY & FLEET REPLACEMENT 420,349.4327,858.611,745,500.00 1,745,500.00 -1,325,150.57 24.08%
502 - INFORMATION TECHNOLOGY 1,097,192.7216,265.584,195,000.00 4,195,000.00 -3,097,807.28 26.15%
503 - PARK EQUIP & FACILITY FUND 242,594.860.001,035,000.00 1,035,000.00 -792,405.14 23.44%
504 - INSURANCE FUND 343,625.430.001,395,941.00 1,395,941.00 -1,052,315.57 24.62%
601 - SILVERROCK RESORT 591,238.47237,312.985,470,000.00 5,470,000.00 -4,878,761.53 10.81%
760 - SUPPLEMENTAL PENSION PLAN -61.890.007,000.00 7,000.00 -7,061.89 0.88%
761 - CERBT OPEB TRUST 108,680.120.0040,000.00 40,000.00 68,680.12 271.70%
762 - PARS PENSION TRUST 279,145.6357,867.79200,000.00 200,000.00 79,145.63 139.57%
Report Total:5,554,706.34 19,302,814.92168,353,853.00 168,353,853.00 -149,051,038.08 11.47%
ĐĐŽƵŶƚƐĂƌĞƐƵďũĞĐƚƚŽĂĚũƵƐƚŝŶŐĞŶƚƌŝĞƐĂŶĚĂƵĚŝƚ͘dŚĞŝƚLJΖƐŶŶƵĂůŽŵƉƌĞŚĞŶƐŝǀĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͕ƉƵďůŝƐŚĞĚĂŶŶƵĂůůLJ͕ŝƐƚŚĞďĞƐƚƌĞƐŽƵƌĐĞĨŽƌĂůůĨŝŶĂůĂƵĚŝƚĞĚŶƵŵďĞƌƐ͘
$77$&+0(17
13
3DJHRI
City Council Month Expense Zeport
Group Summary
For Fiscal: 2025/26 Period Ending: 10/31/2025
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
ActivityFun…
Current
Total Budget
Original
Total Budget
Percent
Used
101 - GENERAL FUND 13,911,790.954,259,790.4792,822,188.00 92,822,188.00 78,910,397.05 14.99%
105 - DISASTER RECOVERY FUND 0.000.004,993,504.00 4,993,504.00 4,993,504.00 0.00%
201 - GAS TAX FUND 540,028.66102,340.663,224,885.00 3,224,885.00 2,684,856.34 16.75%
202 - LIBRARY & MUSEUM FUND 135,691.3343,459.923,149,391.00 3,149,391.00 3,013,699.67 4.31%
210 - FEDERAL ASSISTANCE FUND 0.000.00160,000.00 160,000.00 160,000.00 0.00%
212 - SLESA (COPS) FUND 0.000.00100,000.00 100,000.00 100,000.00 0.00%
215 - LIGHTING & LANDSCAPING FUND 1,071,644.82349,577.183,854,500.00 3,854,500.00 2,782,855.18 27.80%
221 - AB 939 - CALRECYCLE FUND 24,664.507,000.00205,000.00 205,000.00 180,335.50 12.03%
223 - MEASURE A FUND 0.000.001,124,132.00 1,124,132.00 1,124,132.00 0.00%
226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG) 10,335.000.0010,000.00 10,000.00 -335.00 103.35%
227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)0.000.005,000.00 5,000.00 5,000.00 0.00%
230 - CASp FUND, AB 1379 0.000.005,500.00 5,500.00 5,500.00 0.00%
231 - SUCCESSOR AGCY PA 1 RORF 15,115,644.820.004,271,147.00 4,271,147.00 -10,844,497.82 353.90%
235 - SO COAST AIR QUALITY FUND 0.000.0040,000.00 40,000.00 40,000.00 0.00%
237 - SUCCESSOR AGCY PA 1 ADMIN 1,800.000.0011,000.00 11,000.00 9,200.00 16.36%
241 - HOUSING AUTHORITY 525,997.06121,247.071,709,533.00 1,709,533.00 1,183,535.94 30.77%
243 - RDA LOW-MOD HOUSING FUND 375,000.000.00325,000.00 325,000.00 -50,000.00 115.38%
247 - ECONOMIC DEVELOPMENT FUND 766.6785.0031,500.00 31,500.00 30,733.33 2.43%
249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)0.000.00150,000.00 150,000.00 150,000.00 0.00%
250 - TRANSPORTATION DIF FUND 400,000.000.00979,109.00 979,109.00 579,109.00 40.85%
253 - LIBRARY DEVELOPMENT DIF 0.000.0015,000.00 15,000.00 15,000.00 0.00%
254 - COMMUNITY & CULTURAL CENTERS DIF 0.000.00482,561.00 482,561.00 482,561.00 0.00%
259 - MAINTENANCE FACILITIES DIF FUND 0.000.00362,526.00 362,526.00 362,526.00 0.00%
270 - ART IN PUBLIC PLACES FUND 36,495.780.00233,000.00 233,000.00 196,504.22 15.66%
310 - LQ FINANCE AUTHORITY DEBT SERVICE 0.000.001,000.00 1,000.00 1,000.00 0.00%
401 - CAPITAL IMPROVEMENT PROGRAMS 9,101,893.456,245,289.6624,293,033.00 24,293,033.00 15,191,139.55 37.47%
501 - FACILITY & FLEET REPLACEMENT 304,755.77163,106.851,745,913.00 1,745,913.00 1,441,157.23 17.46%
502 - INFORMATION TECHNOLOGY 973,192.01107,402.014,195,820.00 4,195,820.00 3,222,627.99 23.19%
503 - PARK EQUIP & FACILITY FUND 501,288.5754,416.36935,000.00 935,000.00 433,711.43 53.61%
504 - INSURANCE FUND 1,182,653.363,147.001,242,600.00 1,242,600.00 59,946.64 95.18%
601 - SILVERROCK RESORT 1,281,507.34436,847.825,517,000.00 5,517,000.00 4,235,492.66 23.23%
760 - SUPPLEMENTAL PENSION PLAN 12,832.860.0012,850.00 12,850.00 17.14 99.87%
761 - CERBT OPEB TRUST 399.130.001,500.00 1,500.00 1,100.87 26.61%
762 - PARS PENSION TRUST 11,959.113,044.6030,000.00 30,000.00 18,040.89 39.86%
Report Total:11,896,754.60 45,520,341.19156,239,192.00 156,239,192.00 110,718,850.81 29.14%
ĐĐŽƵŶƚƐĂƌĞƐƵďũĞĐƚƚŽĂĚũƵƐƚŝŶŐĞŶƚƌŝĞƐĂŶĚĂƵĚŝƚ͘dŚĞŝƚLJΖƐŶŶƵĂůŽŵƉƌĞŚĞŶƐŝǀĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͕ƉƵďůŝƐŚĞĚĂŶŶƵĂůůLJ͕ŝƐƚŚĞďĞƐƚƌĞƐŽƵƌĐĞĨŽƌĂůůĨŝŶĂůĂƵĚŝƚĞĚŶƵŵďĞƌƐ͘
14
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
3DJHRI
15
16
City of La Quinta
FINANCIAL ADVISORY COMMISSION SPECIAL MEETING: February 11, 2026
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
NOVEMBER 30, 2025
RECOMMENDATION
Receive and file revenue and expenditure report dated November 30, 2025.
EXECUTIVE SUMMARY
•The report summarizes the City’s year-to-date (YTD) and month-to-date (MTD)
revenues and expenditures for November 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 2025 for fiscal year 2025/26.
Current Total Budget – represents original adopted budgets plus any Council
approved budget amendments from throughout the year, including any carryovers
from fiscal year 2024/25.
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
17
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/City Treasurer
Attachment: 1. Revenue and Expenditure Report for November 30, 2025
MTD YTD
Percent of
Budget YTD
Percent of
Budget
General Fund (GF)3,498,515$ 11,796,676$ 12.79% 10,626,427$ 12.85%
All Funds 5,054,023$ 24,356,838$ 10.23% 19,103,352$ 9.00%
MTD YTD
Percent of
Budget YTD
Percent of
Budget
General Fund 1,839,644$ 15,753,939$ 12.63% 13,366,258$ 12.73%
Payroll (GF)938,592$ 4,583,845$ 30.10% 9,783,115$ 30.76%
All Funds 4,306,168$ 49,829,014$ 18.81% 43,342,411$ 18.80%
November 2025 Revenues Comparison to 2024
November 2025 Expenditures Comparison to 2024
General Fund Non-General Fund
Measure G Sales Tax 1,078,869$ SilverRock Green Fees 391,722$
Transient Occupancy (Hotel) Tax 825,403$ Allocated Interest 379,961$
Sales Tax 824,968$ Gas Tax 189,460$
Fire Service Credit 154,962$ County Sales Tax (Measure A)162,154$
Franchise Tax- Cable Television 127,967$ Rent Revenue 104,527$
General Fund Non-General Fund
Contract Legal Services 166,176$ Capital Improvement Program (CIP) - Construction(1)1,070,281$
X-Park Programming 111,364$ SilverRock Maintenance 314,350$
Parks Landscape Maintenance Contract 95,819$ Lighting & Landscape Maintenance Contract 133,083$
Community Experiences 49,746$ Software Licenses 78,020$
Parks Maintenance/Services 46,165$ Vehicles 65,455$
Top Five Revenue/Income Sources for November
Top Five Expenditures/Outlays for November
(1)CIP Construction: Construction expenses for Hwy 111 pavement rehabilitation and Fritz Burns Park improvements.
18
Page 1 of
City Council Month Revenue Report
Group Summary
For Fiscal: 2025/26 Period Ending: 11/30/2025
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
ActivityFun…
Current
Total Budget
Original
Total Budget
Percent
Used
101 - GENERAL FUND 11,796,675.703,498,515.1392,242,254.00 92,242,254.00 -80,445,578.30 12.79%
105 - DISASTER RECOVERY FUND -5,164.700.00172,000.00 172,000.00 -177,164.70 3.00%
201 - GAS TAX FUND 662,281.73189,460.283,217,705.00 3,217,705.00 -2,555,423.27 20.58%
202 - LIBRARY & MUSEUM FUND -10,006.54334.254,420,000.00 4,420,000.00 -4,430,006.54 0.23%
203 - PUBLIC SAFETY FUND (MEASURE G)-178.200.006,000.00 6,000.00 -6,178.20 2.97%
210 - FEDERAL ASSISTANCE FUND 138,248.030.00160,100.00 314,033.00 -175,784.97 44.02%
212 - SLESA (COPS) FUND 117,546.508,333.33121,000.00 121,000.00 -3,453.50 97.15%
215 - LIGHTING & LANDSCAPING FUND 32,587.230.003,862,100.00 3,862,100.00 -3,829,512.77 0.84%
221 - AB 939 - CALRECYCLE FUND 10,507.760.0091,000.00 91,000.00 -80,492.24 11.55%
223 - MEASURE A FUND 446,484.72162,154.111,900,000.00 1,900,000.00 -1,453,515.28 23.50%
226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG)0.000.0010,000.00 10,000.00 -10,000.00 0.00%
227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)0.000.005,400.00 5,400.00 -5,400.00 0.00%
230 - CASp FUND, AB 1379 7,249.451,164.0024,000.00 24,000.00 -16,750.55 30.21%
231 - SUCCESSOR AGCY PA 1 RORF 12,894.39109.7720,333,000.00 20,333,000.00 -20,320,105.61 0.06%
235 - SO COAST AIR QUALITY FUND -139.450.0057,000.00 57,000.00 -57,139.45 0.24%
237 - SUCCESSOR AGCY PA 1 ADMIN -184.150.0012,320.00 12,320.00 -12,504.15 1.49%
241 - HOUSING AUTHORITY 531,856.40104,527.271,666,000.00 1,666,000.00 -1,134,143.60 31.92%
243 - RDA LOW-MOD HOUSING FUND -4,495.490.00130,000.00 130,000.00 -134,495.49 3.46%
247 - ECONOMIC DEVELOPMENT FUND 16,991.072,013.33109,000.00 109,000.00 -92,008.93 15.59%
249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)24,596.560.0086,000.00 86,000.00 -61,403.44 28.60%
250 - TRANSPORTATION DIF FUND 235,677.1276,171.00579,000.00 579,000.00 -343,322.88 40.70%
251 - PARKS & REC DIF FUND 112,540.7540,014.00203,000.00 203,000.00 -90,459.25 55.44%
252 - CIVIC CENTER DIF FUND 66,253.6723,370.00160,000.00 160,000.00 -93,746.33 41.41%
253 - LIBRARY DEVELOPMENT DIF 21,497.007,543.0030,500.00 30,500.00 -9,003.00 70.48%
254 - COMMUNITY & CULTURAL CENTERS DIF 50,964.5718,164.0095,000.00 95,000.00 -44,035.43 53.65%
257 - FIRE PROTECTION DIF 19,784.977,011.0051,000.00 51,000.00 -31,215.03 38.79%
259 - MAINTENANCE FACILITIES DIF FUND 18,212.085,947.0047,000.00 47,000.00 -28,787.92 38.75%
270 - ART IN PUBLIC PLACES FUND 35,580.104,679.90181,000.00 181,000.00 -145,419.90 19.66%
299 - INTEREST ALLOCATION FUND 3,492,845.58379,961.190.00 0.00 3,492,845.58 0.00%
310 - LQ FINANCE AUTHORITY DEBT SERVICE 0.000.001,000.00 1,000.00 -1,000.00 0.00%
401 - CAPITAL IMPROVEMENT PROGRAMS 2,930,895.7312,479.8724,293,033.00 93,976,127.98 -91,045,232.25 3.12%
501 - FACILITY & FLEET REPLACEMENT 420,349.430.001,745,500.00 1,745,500.00 -1,325,150.57 24.08%
502 - INFORMATION TECHNOLOGY 1,113,251.6716,058.954,195,000.00 4,195,000.00 -3,081,748.33 26.54%
503 - PARK EQUIP & FACILITY FUND 242,594.860.001,035,000.00 1,035,000.00 -792,405.14 23.44%
504 - INSURANCE FUND 343,625.430.001,395,941.00 1,395,941.00 -1,052,315.57 24.62%
601 - SILVERROCK RESORT 1,050,843.14459,604.675,470,000.00 5,470,000.00 -4,419,156.86 19.21%
760 - SUPPLEMENTAL PENSION PLAN -61.890.007,000.00 7,000.00 -7,061.89 0.88%
761 - CERBT OPEB TRUST 108,680.120.0040,000.00 40,000.00 68,680.12 271.70%
762 - PARS PENSION TRUST 315,552.1836,406.55200,000.00 200,000.00 115,552.18 157.78%
Report Total:5,054,022.60 24,356,837.52168,353,853.00 238,190,880.98 -213,834,043.46 10.23%
ĐĐŽƵŶƚƐĂƌĞƐƵďũĞĐƚƚŽĂĚũƵƐƚŝŶŐĞŶƚƌŝĞƐĂŶĚĂƵĚŝƚ͘dŚĞŝƚLJΖƐŶŶƵĂůŽŵƉƌĞŚĞŶƐŝǀĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͕ƉƵďůŝƐŚĞĚĂŶŶƵĂůůLJ͕ŝƐƚŚĞďĞƐƚƌĞƐŽƵƌĐĞĨŽƌĂůůĨŝŶĂůĂƵĚŝƚĞĚŶƵŵďĞƌƐ͘
ATTACHMENT 1
19
Page of
City Council Month Expense Report
Group Summary
For Fiscal: 2025/26 Period Ending: 11/30/2025
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
ActivityFun…
Current
Total Budget
Original
Total Budget
Percent
Used
101 - GENERAL FUND 15,753,939.131,839,643.5392,822,188.00 124,767,095.58 109,013,156.45 12.63%
105 - DISASTER RECOVERY FUND 0.000.004,993,504.00 4,993,504.00 4,993,504.00 0.00%
201 - GAS TAX FUND 603,113.0563,084.393,224,885.00 5,369,867.76 4,766,754.71 11.23%
202 - LIBRARY & MUSEUM FUND 165,272.6629,581.333,149,391.00 5,112,850.74 4,947,578.08 3.23%
210 - FEDERAL ASSISTANCE FUND 0.000.00160,000.00 313,933.00 313,933.00 0.00%
212 - SLESA (COPS) FUND 0.000.00100,000.00 100,000.00 100,000.00 0.00%
215 - LIGHTING & LANDSCAPING FUND 1,358,076.61286,431.793,854,500.00 3,854,500.00 2,496,423.39 35.23%
221 - AB 939 - CALRECYCLE FUND 31,664.507,000.00205,000.00 205,000.00 173,335.50 15.45%
223 - MEASURE A FUND 0.000.001,124,132.00 4,834,347.80 4,834,347.80 0.00%
226 - EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG) 10,335.000.0010,000.00 10,000.00 -335.00 103.35%
227 - STATE HOMELAND SECURITY PROGRAMS (SHSP)0.000.005,000.00 5,000.00 5,000.00 0.00%
230 - CASp FUND, AB 1379 454.40454.405,500.00 5,500.00 5,045.60 8.26%
231 - SUCCESSOR AGCY PA 1 RORF 15,115,644.820.004,271,147.00 4,271,147.00 -10,844,497.82 353.90%
235 - SO COAST AIR QUALITY FUND 0.000.0040,000.00 40,000.00 40,000.00 0.00%
237 - SUCCESSOR AGCY PA 1 ADMIN 1,800.000.0011,000.00 11,000.00 9,200.00 16.36%
241 - HOUSING AUTHORITY 636,399.45110,402.391,709,533.00 1,709,533.00 1,073,133.55 37.23%
243 - RDA LOW-MOD HOUSING FUND 375,000.000.00325,000.00 325,800.00 -49,200.00 115.10%
247 - ECONOMIC DEVELOPMENT FUND 3,083.002,316.3331,500.00 31,500.00 28,417.00 9.79%
249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)0.000.00150,000.00 150,000.00 150,000.00 0.00%
250 - TRANSPORTATION DIF FUND 400,000.000.00979,109.00 3,377,883.19 2,977,883.19 11.84%
251 - PARKS & REC DIF FUND 0.000.000.00 648,950.00 648,950.00 0.00%
252 - CIVIC CENTER DIF FUND 0.000.000.00 249,925.00 249,925.00 0.00%
253 - LIBRARY DEVELOPMENT DIF 0.000.0015,000.00 15,000.00 15,000.00 0.00%
254 - COMMUNITY & CULTURAL CENTERS DIF 0.000.00482,561.00 792,914.42 792,914.42 0.00%
259 - MAINTENANCE FACILITIES DIF FUND 0.000.00362,526.00 362,526.00 362,526.00 0.00%
270 - ART IN PUBLIC PLACES FUND 38,595.782,100.00233,000.00 689,252.37 650,656.59 5.60%
310 - LQ FINANCE AUTHORITY DEBT SERVICE 0.000.001,000.00 1,000.00 1,000.00 0.00%
401 - CAPITAL IMPROVEMENT PROGRAMS 10,250,414.191,148,520.7424,293,033.00 88,703,905.87 78,453,491.68 11.56%
501 - FACILITY & FLEET REPLACEMENT 423,514.95118,759.181,745,913.00 2,027,526.55 1,604,011.60 20.89%
502 - INFORMATION TECHNOLOGY 1,128,124.74154,932.734,195,820.00 4,195,820.00 3,067,695.26 26.89%
503 - PARK EQUIP & FACILITY FUND 501,288.570.00935,000.00 935,000.00 433,711.43 53.61%
504 - INSURANCE FUND 1,183,578.58925.221,242,600.00 1,242,600.00 59,021.42 95.25%
601 - SILVERROCK RESORT 1,820,458.92538,951.585,517,000.00 5,517,000.00 3,696,541.08 33.00%
760 - SUPPLEMENTAL PENSION PLAN 12,832.860.0012,850.00 12,850.00 17.14 99.87%
761 - CERBT OPEB TRUST 399.130.001,500.00 1,500.00 1,100.87 26.61%
762 - PARS PENSION TRUST 15,023.973,064.8630,000.00 30,000.00 14,976.03 50.08%
Report Total:4,306,168.47 49,829,014.31156,239,192.00 264,914,232.28 215,085,217.97 18.81%
ĐĐŽƵŶƚƐĂƌĞƐƵďũĞĐƚƚŽĂĚũƵƐƚŝŶŐĞŶƚƌŝĞƐĂŶĚĂƵĚŝƚ͘dŚĞŝƚLJΖƐŶŶƵĂůŽŵƉƌĞŚĞŶƐŝǀĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͕ƉƵďůŝƐŚĞĚĂŶŶƵĂůůLJ͕ŝƐƚŚĞďĞƐƚƌĞƐŽƵƌĐĞĨŽƌĂůůĨŝŶĂůĂƵĚŝƚĞĚŶƵŵďĞƌƐ͘
20
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
3DJHRI
21
22
City of La Quinta
FINANCIAL ADVISORY COMMISSION SPECIAL MEETING: February 11, 2026
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE ANNUAL COMPREHENSIVE FINANCIAL
REPORT FOR YEAR ENDED JUNE 30, 2025
RECOMMENDATION
Receive and file the Annual Comprehensive Financial Report for the year ended June 30,
2025.
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 December 19, 2025.
The independent auditors rendered an unmodified (“clean”) opinion, which is the
most favorable conclusion.
The ACFR will be presented to Council on February 17, 2026.
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, 2025, 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. 1
23
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 is available in the Finance section of the City’s website. The independent
auditors did not report any internal control deficiencies related to financial reporting,
compliance, or other matters. The ACFR has been submitted to the Government Finance
Officers Association (GFOA) Certificate of Achievement for Excellence in Financial
Reporting Program.
In addition, a Single Audit for fiscal year 2024/25, a separate audit requirement under
federal law for entities that expend $750,000 or more in federal funds during a fiscal year, is
expected to be issued in March 2026.
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. 2024/25 Annual Comprehensive Financial Report Summary
2. 2024/25 Unrestricted Funds Summary
24
Fiscal Year 2024/25
Annual Comprehensive Financial Report (ACFR)
Summary
Summary of ACFR Contents
The fiscal year (FY) 2024/25 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 2024/25 will be presented separately at the February 17, 2026, 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 of the information 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.
Lance, Soll & Lunghard (LSL), LLP, has issued an unmodified (“clean”) opinion on the City’s financial
statements for the year ended June 30, 2025, which is the most favorable conclusion.
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.
Significant Changes and Financial Highlights
Governmental Revenues and Expenses
Governmental Activities include thirty-one (31) individual governmental funds. There are three (3)
major governmental funds: the General Fund, one Capital Improvement capital project fund, and
one Housing Authority special revenue fund. Data from the other twenty-eight (28) governmental
funds are combined into a single, aggregate presentation.
Key Highlights:
General Fund overall fund balance increased by approximately $33.1 million as
compared to the ending balance on June 30, 2024. This was mostly attributed to
revenue exceeding budget projections, coupled with expenditure savings.
ATTACHMENT 1
25
General Fund Reserves are 100% funded to established target amounts for FY 2024/25
representing a combined balance of $45 million.
As of June 30, 2025, 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 capital grants and contributions, use of money and property, and property taxes,
offset by decreases in capital grants and contributions, miscellaneous, and other taxes.
General Fund revenues exceeded the final budget by $7.1 million, with the majority of
revenue categories posting positive variances.
Actual expenses were $47.1 million lower than the final budget, of which $850,000 was
carried over into FY 2025/26 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 $31.8 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 $84,454,583, or 35%, of the total $242,951,299 balance and included savings from
total final FY 2024/25 General Fund budgeted expenditures including transfers and multi-year capital
project carryovers.
As of June 30, 2025, the City's total governmental funds reported combined ending fund balances of
$302,652,399 and General Fund balances of $242,951,299 as follows:
2024/25 Governmental Fund Balances
When compared to June 30, 2024, total governmental fund balance increased by $32,750,505 and
total General Fund balance increased by $33,165,592.
2023/24 Governmental Fund Balances
Category General Fund Percent All Other Funds Percent Total Funds Percent
Nonspendable 25,681,444$ 11% 3,750$ 0% 25,685,194$ 8%
Restricted 6,172,305 3% 68,431,718 115% 74,604,023 25%
Committed 45,000,000 19%- 0% 45,000,000 15%
Assigned 81,642,967 34%- 0% 81,642,967 27%
Unassigned 84,454,583 35% (8,734,368) -15% 75,720,215 25%
TOTAL 242,951,299$ 100% 59,701,100$ 100% 302,652,399$ 100%
26
General Fund Balances
A year-over-year decrease of $2,882,000 in Nonspendable is mainly attributed to the FY 2024/25
Redevelopment Agency (RDA) loan repayment of $2,805,000 offset by interest earnings of $57,000
resulting in a net decrease of $2,748,000 in Due from Other Governments. The outstanding loan
balance to the RDA of $17,969,747 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. During FY 2022/23, the City made a one-time discretionary payment of $5.0 million
to CalPERS to reduce unfunded pension liabilities, utilizing resources from the trust. Increases in FY
2023/24 and FY 2024/25 are primarily attributable to interest earnings within the trust. All Other Funds
fund balance increased by $4,217,000 and reflects combined activity within the Housing Fund and other
restricted funds.
Committed reserves decreased by $900,000, primarily due the reclassification of operational carryover
balances from the committed category to the assigned category. The committed classification now
reflects only formally established reserve amounts.
An increase of $11,338,000 in assigned reserves was due to increases of $3,738,000 in the fire services
trust and $10,962,000 in multi-year capital projects and operational carryovers, along with a decrease
of $3,362,000 in Measure G sales tax reserves.
Outstanding Debt
Total governmental activities debt increased by $1,182,535 from $1,559,701 to $2,742,236. Of the total
change, $(47,668) represents leases, $455,691 in employee compensated absences, and $774,512 in
subscription IT liabilities driven by new and amended subscription arrangements. Compensated
absences are presented as a net change in accordance with GASB Statement No. 101. GASB
Statement No. 101 updated the accounting and reporting requirements for compensated absences,
resulting in the recognition of these obligations as a net change based on employees’ earned benefits
rather than the prior incremental accrual methodology. 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, 2025, the City reported a liability of $608,374 for its proportionate share of the collective
net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of June
30, 2023. Detailed information about the pension plan’s fiduciary net position is available in the
separately issued CalPERS financial reports and additional information on the City’s pension plan can
be found in Note 9.
Debt Type:2024 2025
Leases 91,795$ 44,127$
Compensated Absences 1,185,597 1,641,288
Subscription IT liabilities 282,309 1,056,821
TOTAL 1,559,701$ 2,742,236$
Governmental Activities
27
As of June 30, 2025, the Section 115 Pension Trust had a balance of $6,172,305, 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 $2,006,406 which decreases the OPEB liability of $1,342,495 and is reported as an asset
balance of $663,911. 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-six (46) active Capital Improvement Projects during FY 2024/25. The five most active projects
were:
Dune Palms Bridge Improvements ($9,972,000)
Fred Waring Drive Pavement Rehabilitation ($1,529,000)
Fritz Burns Park Improvements ($1,066,000)
Dune Palms Road Pavement Rehabilitation ($914,000)
Village Art Plaza Promenade & Cultural Campus ($656,000)
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 its long-range fiscal goals are achieved through oversight by various Boards and
Commissions composed of Council-appointed residents, which may include City Council representation
and are supported by City staff. In addition, the City has adopted and continues to refine comprehensive
financial policies and practices designed to promote long-term fiscal resiliency, enhance transparency,
and encourage public engagement.
The City has taken a proactive and disciplined approach to managing rising pension, public safety, and
infrastructure costs by strengthening reserve levels, strategically addressing long-term liabilities, and
maintaining prudent expenditure controls. As of June 30, 2025, all four General Fund reserve
categories—Cash Flow, Natural Disaster, Economic Disaster, and Capital Replacement—are fully
funded in accordance with City policy, reinforcing the City’s ability to respond to economic uncertainty
and unforeseen events.
The City Council continues to demonstrate a strong commitment to long-term financial sustainability
through the adoption of structurally balanced budgets, responsible allocation of revenues, and strategic
investment in capital and long-term obligations. As a result, the City remains well-positioned to maintain
essential services, support capital improvement needs, and navigate future financial challenges while
preserving fiscal stability.
28
EXHIBIT A
29
CITY OF LA QUINTA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
30
CITY OF LA QUINTA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
INTRODUCTORY SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .i
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ii
Organizational Chart of City Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viii
FINANCIAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Government-Wide Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
Balance Sheet - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net
Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental
Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities . . . . . . . . . . . . . . . . . . . . . . .
29
Proprietary Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Statement of Net Position - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds . . . .32
Statement of Cash Flows - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
Fiduciary Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
Statement of Fiduciary Net Position - Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
Statement of Changes in Fiduciary Net Position - Fiduciary Funds . . . . . . . . . . . . . . . . . . . . .37
Notes to The Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Page
31
Table of Contents
Page
Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76
Budgetary Comparison Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77
General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78
Housing Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
Schedule of Proportionate Share of the Net Pension Liability - Miscellaneous Plan . . . . . . . . . . . . .81
Schedule of Plan Contributions - Miscellaneous Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
Schedule of OPEB Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios . . . . . . . . . . . . . . . . . . .85
Notes to Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87
Combining and Individual Fund Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
Combining Balance Sheet - Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
98
Budgetary Comparison Schedules - Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . .105
Disaster Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106
State Gas Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107
Library and Museum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .108
Federal Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109
State Law Enforcement Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110
Lighting and Landscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111
Quimby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112
La Quinta Public Safety Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113
Art in Public Places . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114
South Coast Air Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115
AB 939 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116
Law Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117
Measure A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118
Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119
AB 1379 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120
Budgetary Comparison Schedules – Capital Project Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121
Capital Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122
Maintenance Facilities DIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123
Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124
Civic Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126
Parks and Recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127
Library Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128
Community Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129
Street Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130
Park Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131
Fire Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132
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Table of Contents
Page
Budgetary Comparison Schedules – Debt Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133
Financing Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134
Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135
Combining Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .136
Statement of Revenues, Expenses and Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . .137
Combining Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138
STATISTICAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140
Financial Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142
Net Position by Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143
Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Changes in Net Position - Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147
Changes in Net Position - Business-type Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151
Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153
Changes in Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155
Revenue Capacity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157
Tax Revenue by Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158
Top 25 Bradley-Burns Sales Tax Producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159
Top 25 Measure G Sales Tax Producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160
Taxable Sales by Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161
Assessed Value of Taxable Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163
Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164
Principal Property Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165
Property Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .166
Debt Capacity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168
Ratios of Outstanding Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169
Ratios of General Bonded Debt Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171
Direct and Overlapping Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172
Legal Debt Margin Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173
Pledged-Revenue Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175
Demographic and Economic Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176
Demographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177
Principal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178
Full-time City Employees by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179
Operating Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180
Operating Indicators by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181
Capital Asset Statistics by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182
Schedule of Insurance in Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183
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INTRODUCTORY SECTION
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December 19, 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, 2025. 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.
Lance, Soll & Lunghard LLP (LSL), has issued an unmodified (“clean”) opinion on the City’s financial
statements for the year ended June 30, 2025. 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.
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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 39,000,
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. 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.
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Local Economy
According to the State of California Employment Development Department, as of September 2025, the
unadjusted unemployment rate for La Quinta was 7.6%, which was higher than unadjusted rates for
Riverside County’s at 6.1% and the statewide average of 5.6%. This reflects broader statewide labor
market softening, as California experienced modest job losses and slower employment growth during
the year. While gains occurred in sectors such as Health Services and Leisure and Hospitality, these
were partially offset by declines in Professional and Business Services. Regional economic conditions
and the City’s exposure to tourism-related and seasonal employment contributed to unemployment
levels remaining elevated relative to county and state averages.
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 hosts Ironman 70.3 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 among the top ten in the United States by ArtFair Sourcebook’s
Top 100 Fine Art Events.
Substantially or entirely completed projects during 2024/25 included PGA Superstore, Dunkin, World
Taekwondo, Yun Therapy Acupuncture and Herb Center, Advanced Endoscopy Centers, Advanced
Gastroenterology Associates along the Highway 111 corridor as well as Disco Rabbit and Brow Arc in
the La Quinta Cove area.
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
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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.
In 2024/25, the General Fund’s overall fund balance increased by about $33.1 million when
compared to the ending balance in 2023/24, mainly due to revenue increases surpassing budget
projections and prudent spending controls. As of June 30, 2025, 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 2025, the City Council adopted a balanced budget for fiscal year 2025/26, 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 $20,066. The 2025/26 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 and
Oasis by Crestwood Communities, and Bravo Estates. Commercial developments include the Hampton
Inn hotel, St. Francis Parish Hall expansion, the Calle Estado mixed-use project, Rancho La Quinta golf
clubhouse remodel/addition and fitness center, La Quinta Dental campus, Highway 111/Adams drive-
through, 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, and
Travertine.
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 and 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
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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.
Awards and Acknowledgements
The City is participating in the Government Finance Officers Association of the United States and
Canada (GFOA) Certificate of Achievement for Excellence in Financial Reporting program. The City’s
submission for the fiscal year ended June 30, 2024, is currently being processed by GFOA. 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. The City expects to meet all program 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/City Treasurer
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Organizational Chart of City Departments
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FINANCIAL SECTION
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INDEPENDENT AUDITORS’ REPORT
To the Honorable 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, (hereafter, the
City) as of and for the year ended June 30, 2025, 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, 2025, 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 Auditors’
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.
Auditors’ 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 auditors’ 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.
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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 post-employment 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.
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.
To the Honorable Members of the City Council
City of La Quinta, California
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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 auditors’ 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 December 19, 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 City’s internal control over financial reporting and compliance.
Irvine, California
December 19, 2025
To the Honorable Members of the City Council
City of La Quinta, California
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Management’s Discussion and Analysis
HIGHLIGHTS
At the close of 2024-25 (June 30, 2025):
• The total assets and deferred outflows of the City exceeded its total liabilities and
deferred inflows at the close of the fiscal year 2024-25 by $950,550,296 (net
position). Of this amount, $249,678,961 (unrestricted net position) may be used to
meet ongoing obligations and $594,231,375 or 63% was invested in capital assets
and is not available to meet ongoing obligations.
• Governmental activities total net position increased by $47,146,195 and the
Business-Type total net position decreased by $1,320,084 which is attributable to
the SilverRock Golf Course.
• Governmental funds (General Fund, Housing Authority, Capital Improvement
Fund), seventeen (17) 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 $302,652,399, an increase of $32,750,505. 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 $84,454,583, or 35%, of the
total $242,951,299 balance and represented 29% of total final General Fund
budgeted expenses including transfers and multi-year capital projects.
• Total governmental activities long-term liabilities increased by $1,182,535 from
$1,559,701 to $2,742,236.
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.
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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 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.
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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
three (3) major governmental funds: the General Fund, the Housing Authority
special revenue fund, and the Capital Improvement capital project fund. Data from
the other twenty-eight (28) 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.
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.
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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.
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 $905,004,075 to $950,550,296 at the close of the 2024-25, which is
$45,826,111 (including prior period adjustment of $279,890) 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 ($592,061,273 or 65% for 2023-24
and 594,231,375 or 63% for 2024-25) 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.
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City of La Quinta Net Position
Governmental Activities Business-Type Activities Total by Fiscal Year
2024 2025
%
Change 2024 2025
%
Change 2024 2025
%
Change
Current and other assets $ 346,290,680 $ 376,648,571 9 % $ 1,841,674 $ 1,168,858 (37) % $ 348,132,354 $ 377,817,429 9 %
Capital assets 549,571,823 555,041,213 1 % 42,987,413 42,542,547 (1) % 592,559,236 597,583,760 1 %
Total Assets 895,862,503 931,689,784 4 % 44,829,087 43,711,405 (2) % 940,691,590 975,401,189 4 %
Deferred outflows 11,707,753 10,613,150 (9) %- - - % 11,707,753 10,613,150 (9) %
Current and other
liabilities 33,085,649 23,472,054 (29) % 476,079 751,043 58 % 33,561,728 24,223,097 (28) %
Non-current liabilities 4,259,110 3,350,610 (21) % 123,859 51,297 (59) % 4,382,969 3,401,907 (22) %
Total Liabilities 37,344,759 26,822,664 (28) % 599,938 802,340 34 % 37,944,697 27,625,004 (27) %
Deferred inflows 9,450,571 7,839,039 (17) %- - - % 9,450,571 7,839,039 (17) %
Net position:
Net investment in capital
assets 549,197,719 551,740,125 - % 42,863,554 42,491,250 (1) % 592,061,273 594,231,375 - %
Restricted 70,215,219 106,639,960 52 %- - - % 70,215,219 106,639,960 52 %
Unrestricted 241,361,988 249,261,146 3 % 1,365,595 417,815 (69) % 242,727,583 249,678,961 3 %
Total Net Position $ 860,774,926 $ 907,641,231 5 % $ 44,229,149 $ 42,909,065 (3) % $ 905,004,075 $ 950,550,296 5 %
An additional portion of the City's net position ($70,215,219 or 8% in 2024 and
$106,639,960 or 11% in 2025) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net
position $249,678,961 (26%) may be used to meet the government's ongoing
obligations to citizens and creditors.
At the end of 2024-25, the City had positive balances in all three categories of net
position for the governmental and business-type activities.
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Governmental Activities
Governmental activities net position increased by $47,146,195, accounting for a positive
5% 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 Activities Business-type Activities Total
2024 2025 $ Change 2024 2025 $ Change 2024 2025 $ Change
PROGRAM REVENUES:
Charges for Services $ 4,921,690 $ 5,241,862 $ 320,172 $ 4,965,124 $ 4,228,963 $ (736,161) $ 9,886,814 $ 9,470,825 $ (415,989)
Operating Grants and
Contributions 7,265,464 12,582,753 5,317,289 - - - 7,265,464 12,582,753 5,317,289
Capital Grants and
Contributions 14,078,555 10,389,593 (3,688,962) - - - 14,078,555 10,389,593 (3,688,962)
GENERAL REVENUES -
& TRANSFERS:
Property Taxes 24,646,620 26,750,585 2,103,965 - - - 24,646,620 26,750,585 2,103,965
Other Taxes 49,202,291 49,182,731 (19,560) - - - 49,202,291 49,182,731 (19,560)
Use of money & property 12,708,191 15,975,454 3,267,263 32,253 36,298 4,045 12,740,444 16,011,752 3,271,308
Motor Vehicle In Lieu 5,584,194 6,046,467 462,273 - - - 5,584,194 6,046,467 462,273
Miscellaneous 1,640,182 1,489,582 (150,600) - - - 1,640,182 1,489,582 (150,600)
Total Revenues 120,047,187 127,659,027 7,611,840 4,997,377 4,265,261 (732,116) 125,044,564 131,924,288 6,879,724
EXPENSES:
General Government 10,727,413 10,728,288 875 - - - 10,727,413 10,728,288 875
Public Safety 29,156,519 24,672,278 (4,484,241) - - - 29,156,519 24,672,278 (4,484,241)
Planning and Development 8,432,348 8,123,885 (308,463) - - - 8,432,348 8,123,885 (308,463)
Community Services 13,647,971 14,853,039 1,205,068 - - - 13,647,971 14,853,039 1,205,068
Public Works 10,982,293 20,770,395 9,788,102 - - - 10,982,293 20,770,395 9,788,102
Interest on Long-Term Debt 48,204 64,947 16,743 - - - 48,204 64,947 16,743
Golf Course - - - 5,643,061 6,885,345 1,242,284 5,643,061 6,885,345 1,242,284
TOTAL EXPENSES 72,994,748 79,212,832 6,218,084 5,643,061 6,885,345 1,242,284 78,637,809 86,098,177 7,460,368
Excess (Deficiency) Before
Transfers 47,052,439 48,446,195 1,393,756 (645,684) (2,620,084) (1,974,400) 46,406,755 45,826,111 (580,644)
TRANSFERS &
EXTRAORDINARY ITEMS:
Transfers (1,466,000) (1,300,000) 166,000 1,466,000 1,300,000 (166,000) - - -
Changes in Net Position 45,586,439 47,146,195 1,559,756 820,316 (1,320,084) (2,140,400) 46,406,755 45,826,111 (580,644)
Net Position - Beginning 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
Prior Period Adjustment - (279,890) (279,890) - - - - (279,890) (279,890)
Net Position - Beginning, As
Restated 815,188,487 860,495,036 45,306,549 43,408,833 44,229,149 820,316 858,597,320 904,724,185 46,126,865
NET POSITION - ENDING $ 860,774,926 $ 907,641,231 $ 46,866,305 $ 44,229,149 $ 42,909,065 (1,320,084) $ 905,004,075 $ 950,550,296 $ 45,546,221
• Governmental revenues overall increased by $7,611,840 with the largest increases
being $5,317,289 in operating grants and contributions, followed by $3,267,263 in
use of money and property, and $2,103,965 in property taxes.
• Expenses for Governmental Activities increased by $6,218,084 (a 9% increase
when compared to 2023-24), with the largest increases being $9,788,102 in Public
Works and $1,205,068 in Community Services offset by a decrease of
$4,484,241 in Public Safety. 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 $1,300,000 to the business-type activities of the golf
course. Funds were utilized to support operations per the adjusted budget.
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Business-Type Activities
This was the twentieth 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 $4,228,963,
$736,161 lower than the previous year, with golf course expenses of 6,885,345,
which were $1,242,284 or approximately 22% more than the previous year.
In 2024-25, the General Fund transferred $1,300,000 to the SilverRock Golf Fund to
support operations. After this transfer, the net position decreased by $1,320,084.
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 2024-25, the City's governmental funds reported combined ending fund
balances as follows:
City of La Quinta Governmental Fund Balances
Category General Fund Percent All Other Funds Percent Total Funds Percent
Nonspendable $ 25,681,444 11 % $ 3,750 0.006 % $ 25,685,194 8 %
Restricted 6,172,305 3 % 68,431,718 114.6 %74,604,023 25 %
Committed 45,000,000 19 %-- %45,000,000 15 %
Assigned 81,642,967 34 %-- %81,642,967 27 %
Unassigned 84,454,583 35 % (8,734,368) (14.6) %75,720,215 25 %
Total $ 242,951,299 100 % $ 59,701,100 100 % $ 302,652,399 100 %
Governmental fund balances ended the year totaling $302,652,399, an increase of
$32,750,505 in comparison with the prior years’ ending balance of $269,901,894. 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 $25,685,194 or 8%; this represents amounts that
are not available to pay for operating expenditures because they are in the form of land
and receivables.
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Restricted
Restricted fund balance totaled $74,604,023 or 25%; these amounts represent funds
with external limitations on spending. Significant restrictions include: Section 115 trust
of $6,172,305 restricted for pension liabilities; Library and Museum totaling $15,775,000
which represents property tax increment money that can only be used for library and
museum services; Measure A funding of $5,159,000 which can only be used for
transportation; Transportation capital project fund of $6,163,000 in developer fees that
are restricted for the acquisition, construction and improvement of the City’s
infrastructure; and Economic Development funding of $3,684,000 that can only be used
for future economic development in the City.
Committed
$45,000,000 (15%) 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
Replacement Reserves. The Policy was updated in 2023 to include increased funding
targets. As of June 30, 2025, 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 $81,642,967 (27%) of the total fund balance. $31,778,242
represents funds for approved multi-year capital projects and $850,000 for general fund
carryovers 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 $29,623,592 and $19,391,133 represents funds held in trust with the County of
Riverside for fire services.
Unassigned
The remaining fund balance of $75,720,215 represents unassigned fund balances or
the residual net resources after taking into consideration the other classifications. The
Capital Improvement Fund accounted for $6,859,124 of the negative $8,734,368
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 2024-25, the
unassigned fund balance was $84,454,583 while total fund balance was $242,951,299.
The General Fund balance increased by $33,165,592 in 2024-25. Key factors were:
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•A year-over-year decrease of $2,882,000 in non-spendable is attributed the
2024-25 Redevelopment Agency loan repayment of $2,805,000 offset by interest
earnings of $57,000 resulted in a net decrease of $2,748,000 in Due from Other
Governments. The outstanding loan balance of $17,969,747 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 increases in FY 2023-24 and FY 2024-25 were primarily driven
by interest earnings within the trust.
•Committed reserves decreased by $900,000, primarily due to the reclassification
of operational carryover balances from the committed category to the assigned
category. The committed classification now reflects only formally established
reserve amounts.
•An increase of $11,338,000 in assigned reserves was due to $3,739,000 in the fire
services trust and $10,962,000 in multi-year capital projects and operations
carryovers. 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, 2025, is $19,391,133. These increases combined with
a decrease in Measure G sales tax reserve ($3,362,000) 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 $227,346 to end
the year at $24,528,484.
Capital Improvement Fund
The Capital Improvement Fund is primarily used to record the expenditures for capital
projects. The fund had forty-six (46) active Capital Improvement Projects budgeted
during 2024-25. The five most active projects were:
•Dune Palms Bridge Improvements ($9,972,000)
•Fred Waring Drive Pavement Rehabilitation ($1,529,000)
•Fritz Burns Park Improvements ($1,066,000)
•Dune Palms Road Pavement Rehabilitation ($914,000)
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•Village Art Plaza Promenade & Cultural Campus ($656,000)
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.
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 $11,633,504 between the original
($82,914,300) and final amended budget ($94,547,804). The category representing the
largest variances is taxes, which represents 82% of all General Fund revenues. Actuals
for taxes include the three largest funding sources for the City – sales taxes
$27,874,000, transient occupancy taxes (TOT) $15,950,000, and property taxes
$13,694,000. Combined, these top three revenues account for $57,518,000 or 72% of
all taxes, resulting in a $1,511,000 increase from the prior fiscal year with increases in
all categories.
Expenditure appropriations and transfers out increased by $25,086,923 between the
original ($83,361,665) and final amended budget ($108,448,588) which included the
following significant change:
•$21,667,000 in operational and capital improvement project carryover
appropriations from prior fiscal years to 2024-25 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,
2025, were $597,583,760 (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 increased by $5,024,524 in 2024-25 primarily due to an
increase in construction in progress.
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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)
Governmental Activities Business-type Activities Total
Description 2024 2025 2024 2025 2024 2025
Land $ 87,280,570 $ 87,280,570 $ 39,712,955 $ 39,712,955 $ 126,993,525 $ 126,993,525
Buildings & Improvements 35,162,219 33,524,206 2,269,551 2,055,005 37,431,770 35,579,211
Equipment & Furniture 1,499,415 1,808,675 16,467 48,529 1,515,882 1,857,204
Vehicles 1,022,210 895,271 867,343 675,756 1,889,553 1,571,027
Infrastructure 397,919,236 393,634,104 - - 397,919,236 393,634,104
Right To Use Leased Assets 91,006 43,447 121,097 50,302 212,103 93,749
Right To Use Subscription It Assets 311,230 1,147,307 - - 311,230 1,147,307
Construction In Progress 26,285,937 36,707,633 - - 26,285,937 36,707,633
TOTAL $ 549,571,823 $ 555,041,213 $ 42,987,413 $ 42,542,547 $ 592,559,236 $ 597,583,760
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, 2025, was $42,542,547, net of
accumulated depreciation. The balance decrease of $444,866 primarily reflects the net
disposal of capital equipment, partially offset by routine additions during the year.
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 2024-25, the City governmental activities had total outstanding long-term
liabilities of $2,742,236, which is $1,182,535 more than the previous year. Of the total
change, $(47,668) represents leases, $774,512 represents subscription IT liabilities, and
$455,691 in employee compensated absences, presented as a net change in
accordance with GASB Statement No. 101. GASB Statement No. 101 updated the
accounting and reporting requirements for compensated absences, resulting in the
recognition of these obligations as a net change based on employees’ earned benefits
rather than the prior incremental accrual methodology.
City of La Quinta Outstanding Debt
Governmental Activities
Debt Type:2024 2025
Leases $ 91,795 $ 44,127
Compensated Absences 1,185,597 1,641,288
Subscription IT liabilities 282,309 1,056,821
Total $ 1,559,701 $ 2,742,236
16
57
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.gov.
17
58
BASIC FINANCIAL STATEMENTS
18
59
GOVERNMENT-WIDE FINANCIAL STATEMENTS
19
60
Statement of Net Position
ASSETS
Cash and investments $ 295,856,194 $ 736,121 $ 296,592,315
Receivables:
Accounts 589,763 -589,763
Taxes 7,194,480 -7,194,480
Accrued interest 6,280,801 456 6,281,257
Due from other governments 23,997,127 -23,997,127
Notes and loans 28,106,583 -28,106,583
Leases 2,170,323 -2,170,323
Deposits 47,965 300,000 347,965
Restricted assets:
Cash and investments 6,172,305 -6,172,305
Inventories -132,281 132,281
Land held for resale 5,403,652 -5,403,652
Prepaid costs 165,467 -165,467
Net OPEB Asset 663,911 -663,911
Capital assets (not being depreciated/amortized)410,062,551 39,712,955 449,775,506
Capital assets (net of accumulated depreciation/amortization)144,978,662 2,829,592 147,808,254
Total assets 931,689,784 43,711,405 975,401,189
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 10,372,123 -10,372,123
OPEB-related 241,027 -241,027
Total deferred outflows of resources 10,613,150 -10,613,150
LIABILITIES
Accounts payable 8,040,768 715,510 8,756,278
Due to other governments 1,118,694 -1,118,694
Accrued liabilities 821,281 -821,281
Accrued interest 5,211 33 5,244
Deposits payable 7,060,623 35,500 7,096,123
Unearned revenue 6,425,477 -6,425,477
Noncurrent liabilities:
Due within one year:
Compensated absences 746,511 -746,511
Leases and subscriptions payable 338,056 32,028 370,084
Due in more than one year:
Compensated absences 894,777 -894,777
Leases and subscriptions payable 762,892 19,269 782,161
Net pension liability 608,374 -608,374
Total liabilities 26,822,664 802,340 27,625,004
DEFERRED INFLOWS OF RESOURCES
Pension-related 5,092,385 -5,092,385
OPEB-related 725,228 -725,228
Lease-related 2,021,426 -2,021,426
Total deferred inflows of resources 7,839,039 -7,839,039
NET POSITION
Net investment in capital assets 551,740,125 42,491,250 594,231,375
Restricted:
General government 841,751 -841,751
Public safety 989,756 -989,756
Planning and development 55,401,363 -55,401,363
Parks and recreation 16,774,731 -16,774,731
Public works 8,891,020 -8,891,020
Capital projects 16,905,123 -16,905,123
Other post-employment benefits 6,836,216 -6,836,216
Unrestricted 249,261,146 417,815 249,678,961
Total net position $ 907,641,231 $ 42,909,065 $ 950,550,296
Primary Government
Governmental
Activities
Business-Type
Activities Total
CITY OF LA QUINTA, CALIFORNIA
Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements 20
61
Statement of Activities
Functions/Programs:
Primary government:
Governmental activities:
General government $ 10,728,288 $ 4,498,560 $ 5,586,441 $ -
Public safety 24,672,278 661,788 206,007 -
Planning and development 8,123,885 - 256,869 -
Community services 14,853,039 - 4,062,490 -
Public works 20,770,395 81,514 2,470,946 10,389,593
Interest Expense and Fiscal Charges 64,947 - - -
Total governmental activities 79,212,832 5,241,862 12,582,753 10,389,593
Business-type activities:
Golf Course 6,885,345 4,228,963 - -
Total business-type activities 6,885,345 4,228,963 - -
Total primary government $ 86,098,177 $ 9,470,825 $ 12,582,753 $ 10,389,593
Component Units:
General revenues and transfers:
General revenues:
Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Business license taxes
Other taxes
Motor vehicle in lieu
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning, before restatements
Restatement - change in accounting principle
Net position-beginning, as restated
Net position-ending
Program Revenues
Expenses
Charges for
Services
Operating
Contributions
and Grants
Capital
Contributions
and Grants
CITY OF LA QUINTA, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 21
62
$ (643,287) $ - $ (643,287)
(23,804,483) - (23,804,483)
(7,867,016) - (7,867,016)
(10,790,549) - (10,790,549)
(7,828,342) - (7,828,342)
(64,947) - (64,947)
(50,998,624) - (50,998,624)
- (2,656,382) (2,656,382)
- (2,656,382) (2,656,382)
(50,998,624) (2,656,382) (53,655,006)
26,750,585 - 26,750,585
29,784,142 - 29,784,142
15,612,280 - 15,612,280
2,330,640 - 2,330,640
442,644 - 442,644
1,013,025 - 1,013,025
6,046,467 - 6,046,467
15,975,454 36,298 16,011,752
1,489,582 - 1,489,582
(1,300,000) 1,300,000 -
98,144,819 1,336,298 99,481,117
47,146,195 (1,320,084) 45,826,111
860,774,926 44,229,149 905,004,075
(279,890) - (279,890)
860,495,036 44,229,149 904,724,185
$ 907,641,231 $ 42,909,065 $ 950,550,296
Net (Expenses) Revenues and
Changes in Net Position
Primary Government
Governmental
Activities
Business-Type
Activities Total
CITY OF LA QUINTA, CALIFORNIA
Statement of Activities (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 22
63
FUND FINANCIAL STATEMENTS
23
64
Balance Sheet - Governmental Funds
Special
Revenue
Funds
Capital
Projects Funds
General Fund
Housing
Authority
Capital
Improvements
ASSETS
Cash and investments $ 211,376,333 $ 20,843,390 $ -
Receivables:
Accounts 281,774 224,035 -
Taxes 6,567,344 - -
Notes and loans 5,865,124 22,241,459 -
Accrued interest 176,816 6,047,633 -
Leases 2,170,323 - -
Prepaid costs 36,870 - -
Deposits - 47,965 -
Due from other governments 14,533,190 3,593,950 4,201,946
Due from other funds 5,184,553 - -
Property held for resale 5,403,652 - -
Restricted assets:
Cash and investments 6,172,305 - -
Total assets $ 257,768,284 $ 52,998,432 $ 4,201,946
LIABILITIES
Accounts payable $ 4,693,483 $ 68,330 $ 2,200,140
Accrued liabilities 725,767 28,385 -
Unearned revenues - - 1,431,973
Deposits payable 7,034,273 26,350 -
Due to other governments 67 - -
Due to other funds - 2,132,708 2,271,106
Total liabilities 12,453,590 2,255,773 5,903,219
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues 341,969 26,214,175 5,157,851
Leases 2,021,426 - -
Total deferred inflows of resources 2,363,395 26,214,175 5,157,851
FUND BALANCES (DEFICITS)
Nonspendable 25,681,444 - -
Restricted 6,172,305 24,528,484 -
Committed 45,000,000 - -
Assigned 81,642,967 - -
Unassigned 84,454,583 - (6,859,124)
Total fund balances (deficits)242,951,299 24,528,484 (6,859,124)
Total liabilities, deferred inflows of
resources and fund balances (deficits)$ 257,768,284 $ 52,998,432 $ 4,201,946
CITY OF LA QUINTA, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 24
65
Total Total
Nonmajor Governmental
Funds Funds
ASSETS
Cash and investments $ 47,427,610 $ 279,647,333
Receivables:
Accounts 83,954 589,763
Taxes 627,136 7,194,480
Notes and loans - 28,106,583
Accrued interest 41,991 6,266,440
Leases - 2,170,323
Prepaid costs 3,750 40,620
Deposits -47,965
Due from other governments 1,668,041 23,997,127
Due from other funds - 5,184,553
Property held for resale - 5,403,652
Restricted assets:
Cash and investments - 6,172,305
Total assets $ 49,852,482 $ 364,821,144
LIABILITIES
Accounts payable $ 641,009 $ 7,602,962
Accrued liabilities 64,660 818,812
Unearned revenues 4,993,504 6,425,477
Deposits payable - 7,060,623
Due to other governments 1,118,627 1,118,694
Due to other funds 780,739 5,184,553
Total liabilities 7,598,539 28,211,121
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues 222,203 31,936,198
Leases - 2,021,426
Total deferred inflows of resources 222,203 33,957,624
FUND BALANCES (DEFICITS)
Nonspendable 3,750 25,685,194
Restricted 43,903,234 74,604,023
Committed - 45,000,000
Assigned - 81,642,967
Unassigned (1,875,244) 75,720,215
Total fund balances (deficits)42,031,740 302,652,399
Total liabilities, deferred inflows of
resources and fund balances (deficits)$ 49,852,482 $ 364,821,144
CITY OF LA QUINTA, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 25
66
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Total fund balances - governmental funds $ 302,652,399
Capital assets, net of accumulated depreciation/amortization, used in governmental
activities are not financial resources and, therefore, are not reported in the funds.539,657,184
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.
Deferred outflows-pension related 10,372,123
Deferred outflows-OPEB related 241,027
Deferred inflows-pension related (5,092,385)
Deferred inflows-OPEB related (725,228)
Total deferred outflows and inflows related to postemployment benefits 4,795,537
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.
Long-term receivables 31,936,198
Net OPEB asset 663,911
Total other long-term assets 32,600,109
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.30,218,520
Long-term liabilities that are not due and payable in the current period, and
therefore, are not reported in the funds.
Leases (32,856)
Compensated absences (1,641,288)
Net pension liability (608,374)
Total long-term liabilities (2,282,518)
Net position of governmental activities $ 907,641,231
CITY OF LA QUINTA, CALIFORNIA
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements 26
67
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
Special Revenue Funds
Capital Projects
Fund
Formerly
Major Fund
Housing
Authority
Disaster
Recovery
Capital
ImprovementsGeneral Fund
REVENUES
Taxes $ 79,662,664 $ - $- $-
Assessments - - --
Licenses and permits 2,682,352 - - -
Intergovernmental 915,126 - - 7,205,731
Charges for services 1,413,876 - - -
Use of money and property 10,255,043 2,323,822 - -
Fines and forfeitures 389,449 - - -
Developer fees - - - -
Miscellaneous 1,335,970 60,486 - -
Total revenues 96,654,480 2,384,308 - 7,205,731
EXPENDITURES
Current:
General government 12,462,112 - - -
Public safety 26,902,914 - - -
Community services 11,788,229 301,600 - -
Planning and development 6,124,503 2,277,769 - -
Public works 2,608,230 - - 955,905
Capital outlay 62,305 32,285 - 17,731,703
Debt service:
Interest and fiscal charges - - - -
Total expenditures 59,948,293 2,611,654 - 18,687,608
Excess (deficiency) of revenues
over (under) expenditures 36,706,187 (227,346) - (11,481,877)
OTHER FINANCING SOURCES (USES)
Transfers in 4,993,504 - - 6,807,200
Transfers out (8,534,099) - - -
Total other financing sources (uses)(3,540,595) - - 6,807,200
Net change in fund balances 33,165,592 (227,346) - (4,674,677)
Fund balances (deficit)-beginning 209,785,707 24,755,830 441,350 (2,184,447)
Change within financial reporting entity - - (441,350) -
Fund balances (deficit)-beginning, as restated 209,785,707 24,755,830 - (2,184,447)
Fund balances (deficit)-ending $ 242,951,299 $ 24,528,484 $ - $ (6,859,124)
CITY OF LA QUINTA, CALIFORNIA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 27
68
Total Total
Nonmajor Governmental
Funds Funds
REVENUES
Taxes $ 1,991,208 $ 81,653,872
Assessments 991,288 991,288
Licenses and permits - 2,682,352
Intergovernmental 11,529,378 19,650,235
Charges for services - 1,413,876
Use of money and property 2,505,833 15,084,698
Fines and forfeitures -389,449
Developer fees 455,990 455,990
Miscellaneous 37,513 1,433,969
Total revenues 17,511,210 123,755,729
EXPENDITURES
Current:
General government 750 12,462,862
Public safety 112,743 27,015,657
Community services 2,305,923 14,395,752
Planning and development 148,719 8,550,991
Public works 5,692,124 9,256,259
Capital outlay 173,987 18,000,280
Debt service:
Interest and fiscal charges 23,423 23,423
Total expenditures 8,457,669 89,705,224
Excess (deficiency) of revenues
over (under) expenditures 9,053,541 34,050,505
OTHER FINANCING SOURCES (USES)
Transfers in 3,052,000 14,852,704
Transfers out (7,618,605) (16,152,704)
Total other financing sources (uses)(4,566,605) (1,300,000)
Net change in fund balances 4,486,936 32,750,505
Fund balances (deficit)-beginning 37,103,454 269,901,894
Change within financial reporting entity 441,350 -
Fund balances (deficit)-beginning, as restated 37,544,804 269,901,894
Fund balances (deficit)-ending $ 42,031,740 $ 302,652,399
CITY OF LA QUINTA, CALIFORNIA
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 28
69
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Amounts reported for governmental activities in the Statement of Activities are different
because:
Net change in fund balances - total governmental funds:$ 32,750,505
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.
Capital outlay 13,624,531
Depreciation/amortization expense (9,094,900)
Total adjustment 4,529,631
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds.
Earned but unavailable grant revenues 3,062,976
Total adjustment 3,062,976
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.
Principal payments 9,379
Total adjustment 9,379
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.3,231,405
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.
Compensated absences (175,801)
Changes in pension liabilities and related deferred outflows and inflows of resources 3,714,521
Changes in OPEB liabilities and related deferred outflows and inflows of resources 23,579
Total adjustment 3,562,299
Change in net position of governmental activities $ 47,146,195
CITY OF LA QUINTA, CALIFORNIA
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 29
70
PROPRIETARY FUND FINANCIAL STATEMENTS
30
71
Statement of Net Position - Proprietary Funds
ASSETS
Current assets:
Cash and investments $ 736,121 $ 16,208,861
Receivables:
Accrued interest 456 14,361
Prepaid costs - 124,847
Deposits 300,000 -
Inventories 132,281 -
Total current assets 1,168,858 16,348,069
Noncurrent:
Capital assets, net of depreciation/amortization 42,542,547 15,384,029
Total noncurrent assets 42,542,547 15,384,029
Total assets 43,711,405 31,732,098
LIABILITIES
Current liabilities:
Accounts payable 715,510 437,806
Accrued liabilities -2,469
Accrued interest 33 5,211
Deposits payable 35,500 -
Leases 32,028 -
Subscriptions - 317,070
Total current liabilities 783,071 762,556
Noncurrent liabilities:
Leases 19,269 11,271
Subscriptions - 739,751
Total noncurrent liabilities 19,269 751,022
Total liabilities 802,340 1,513,578
NET POSITION
Net investment in capital assets 42,491,250 14,315,937
Unrestricted 417,815 15,902,583
Total net position $ 42,909,065 $ 30,218,520
Business-Type
Activities
Governmental
Activities
Golf Course
Internal
Service Funds
CITY OF LA QUINTA, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 31
72
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds
Business-Type
Activities
Governmental
Activities
Golf Course
Internal
Service Funds
OPERATING REVENUES
Sales and service charges $ 4,228,963 $ 8,287,458
Total operating revenues 4,228,963 8,287,458
OPERATING EXPENSES
Administration and general - 294,731
Contract services 6,330,380 2,200,185
Software and supplies - 564,527
Fuel and oil - 108,076
Repairs and maintenance 41,800 901,380
Depreciation and amortization 510,343 1,785,952
Total operating expenses 6,882,523 5,854,851
Operating income (loss)(2,653,560) 2,432,607
NONOPERATING REVENUES (EXPENSES)
Interest revenue 36,298 742,801
Interest expense (2,822) (41,524)
Gain (loss) on disposal of capital assets - 97,521
Total nonoperating revenues (expenses)33,476 798,798
Income (loss) before transfers (2,620,084) 3,231,405
Transfers in 1,300,000 -
Change in net position (1,320,084) 3,231,405
Net position-beginning 44,229,149 26,987,115
Net position-ending $ 42,909,065 $ 30,218,520
CITY OF LA QUINTA, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 32
73
Statement of Cash Flows - Proprietary Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 4,178,963 $ -
Cash received from interfund services provided - 8,287,458
Cash payments to suppliers for goods and services (6,087,856) (4,925,278)
Net cash provided by (used for)
operating activities (1,908,893) 3,362,180
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds 1,300,000 -
Net cash provided by (used for)
noncapital financing activities 1,300,000 -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (65,477) (1,633,637)
Principal paid on capital debt (72,562) (287,841)
Interest paid on capital debt (2,924) (122,188)
Proceeds from sales of assets - 108,227
Net cash provided by (used for)
capital and related financing activities (140,963) (1,935,439)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 36,726 745,178
Net cash provided by (used for)
investing activities 36,726 745,178
Net increase (decrease) in
cash and cash equivalents (713,130) 2,171,919
Cash and cash equivalents-beginning 1,449,251 14,036,942
Cash and cash equivalents-ending $ 736,121 $ 16,208,861
Business-Type
Activities
Governmental
Activities
Golf Course
Internal
Service Funds
CITY OF LA QUINTA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 33
74
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)$ (2,653,560) $ 2,432,607
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 510,343 1,785,952
(Increase) decrease in deposits (50,000) -
(Increase) decrease in inventories 9,259 -
(Increase) decrease in prepaid items -(4,048)
Increase (decrease) in accounts payable 275,065 (852,743)
Increase (decrease) in accrued liabilities -412
Total adjustments 744,667 929,573
Net cash provided by (used for)
operating activities $ (1,908,893) $ 3,362,180
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Capital assets acquired through subscription arrangement - $ 1,193,190
Business-Type
Activities
Governmental
Activities
Golf Course
Internal
Service Funds
CITY OF LA QUINTA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 34
75
FIDUCIARY FUND FINANCIAL STATEMENTS
35
76
Statement of Fiduciary Net Position - Fiduciary Funds
Pension (and
Other
Employee
Benefits)
Private
Purpose
Trust Fund
ASSETS
Cash and cash equivalents $ 69,869 $ 15,777,560
Receivables:
Accrued interest 62 191
Prepaid costs - 236,575
Due from other governments - 1,118,627
Restricted assets:
Cash with fiscal agent - 23,252
Total assets 69,931 17,156,205
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 12,391,524
Total deferred outflows of resources - 12,391,524
LIABILITIES
Accrued interest - 977,137
Long-term debt:
Due in one year - 17,060,934
Due in more than one year - 135,264,555
Total liabilities - 153,302,626
NET POSITION
Restricted for pensions 64,931 -
Restricted for the dissolution of the former RDA - (123,754,897)
Total net position $ 64,931 $ (123,754,897)
CITY OF LA QUINTA, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 36
77
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
Pension (and
Other
Employee
Benefits)
Private
Purpose Trust
Fund
ADDITIONS
Investment earnings:
Investment income $ 3,602 $ 61,872
Total investment earnings 3,602 61,872
Taxes - 20,261,137
Miscellaneous --
Total additions 3,602 20,323,009
DEDUCTIONS
Administrative expenses 12,832 29,361
Interest and fiscal charges - 4,492,068
Total deductions 12,832 4,521,429
Net increase (decrease) in fiduciary net position (9,230) 15,801,580
Net position-beginning 74,161 (139,556,477)
Net position-ending $ 64,931 $ (123,754,897)
CITY OF LA QUINTA, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 37
78
Notes to The Basic Financial Statements
38
79
A. The 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
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For the Year Ended June 30, 2025
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• Fund financial statements
• Notes to the financial statements
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
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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.
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
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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.
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.
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
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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.
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
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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.
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 statements of net position.
The following schedule summarizes capital asset useful lives:
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
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
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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.
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.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
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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.
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.
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
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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.
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. 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 evaluated the impact of this statement and determined that it did
not have a material effect on the City’s financial statements; as such no restatement of balances as of July 1,
2024 was deemed necessary.
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. The City has evaluated the impact of this statement and
determined that no additional disclosures are necessary at this time.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
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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. 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.
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
NOTE 2 - CASH AND INVESTMENTS
Cash and investments held by the City were comprised of the following at June 30, 2025:
Statement of Net Position
Cash and investments $ 296,592,315
Restricted cash and investments 6,172,305
Statement of Fiduciary Net Position
Cash and cash equivalents 15,847,429
Restricted cash and investments 23,252
Total cash and investments $ 318,635,301
Cash and investments as of June 30, 2025 consisted of the following:
Cash on hand $ 3,300
Deposits with financial institutions 16,535,121
Investments 302,096,880
Total cash and investments $ 318,635,301
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
504
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
48
89
Authorized by Maximum
Investment Types Investment Maximum Percentage Maximum
Authorized by State Law Policy Maturity Allowed Investment
U.S. Treasury Obligations Yes 5 years N/A N/A
U.S. Agency Securities Yes 5 years N/A $30 million
Local Agency Obligations Yes 5 years N/A N/A
State-Issued Obligations Yes 5 years N/A N/A
Commercial paper Yes 270 days 40%10%
Certificates of deposit (negotiable)Yes 5 years 30% $250,000
Medium-term (Corporate) Notes Yes 5 years 30%$5 million
JPA Investment Pools Yes N/A N/A N/A
Money Market Mutual Funds Yes N/A 20%10%
Mortgage pass-through securities Yes 5 years 20%N/A
Supranationals Yes 5 years 30%N/A
Local Agency Investment Fund Yes N/A N/A $75 million
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.
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
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90
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:
Remaining Maturity (in Months)
1 year 1 to 3 3 to 5
Investment Type Total or Less years years
Certificates of Deposit $ 36,920,593 $ 5,638,119 $ 20,000,372 $ 11,282,102
Federal agency securities
Federal Farm Credit Bank 25,488,305 - 10,413,725 15,074,580
Federal National Mortgage Association 8,947,650 4,947,890 - 3,999,760
Federal Home Loan Mortgage Corp 5,301,797 3,869,387 1,432,410 -
Federal Home Loan Bank 24,956,200 3,426,600 8,581,489 12,948,111
U.S. Treasurey Notes 63,638,290 9,096,570 25,915,375 28,626,345
Corporate Notes 2,505,100 487,470 996,470 1,021,160
Money Market Mutual Funds 1,943,691 1,943,691 - -
Local Agency Investment Fund (LAIF)42,065,822 42,065,822 - -
CAMP 64,742,745 64,742,745 - -
Riverside County Pool 19,391,133 19,391,133 - -
Section 115 Trust
Equity Mutual Funds 6,172,304 6,172,304 - -
Held by Fiscal Agent
Money Market Mutual Funds 23,250 23,250 - -
Total $ 302,096,880 $ 161,804,981 $ 67,339,841 $ 72,952,058
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
50
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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:
Investment Type Total Aaa Aa
Federal Agency Securities $ 64,693,952 $ - $ 64,693,952
Corporate Notes 2,505,100 487,470 2,017,630
CAMP 64,742,745 64,742,745 -
Money Market Mutual Funds 1,943,691 1,943,691 -
Total 133,885,488 $ 67,173,906 $ 66,711,582
Exempt from Credit Risk Disclosure:
U.S. Treasury Notes 63,638,290
Not Rated:
Certificates of Deposit 36,920,593
Local Agency Investment Pool 42,065,822
Riverside County Pool 19,391,133
Section 115 Trust:
Equity Mutual Funds 6,172,304
Held by Fiscal Agent:
Money Market Mutual Funds 23,250
Total $ 302,096,880
Investments in any one issuer that represent 5 percent or more of total City’s investments are as follows:
Issuer Investment Type
Reported
Amount
Percent of
Portfolio
Federal Farm Credit Bank Federal Agency Securities 25,488,305 8.44%
Federal Home Loan Bank Federal Agency Securities 24,956,200 8.26%
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
51
92
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.
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
52
93
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.
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, 2025:
Investment Type Total Level 1 Level 2
Investments
U.S. Treasury $ 63,638,290 $ 63,638,290 $ -
Federal Agency Securities 64,693,952 - 64,693,952
Corporate Notes 2,505,100 - 2,505,100
Certificates of Deposit 36,920,593 - 36,920,593
Total leveled investments 167,757,935 63,638,290 104,119,645
Investments with uncategorized inputs
Money Market Mutual Funds 1,943,691
Local Agency Investment Fund 42,065,822
CAMP 64,742,745
Riverside County Pool 19,391,133
Section 115 Trust
Equity Mutual Funds 6,172,304
Held by Fiscal Agent
Money Market Mutual Funds 23,250
Total investments $ 302,096,880
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
53
94
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, 2025, the outstanding principal balance is
$2,035,388 and the outstanding interest is $3,620,776.
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, 2025, the outstanding
principal balance is $20,206,071 and the outstanding interest balance is $2,387,329.
In connection with the Talus La Quinta development project (formerly known as the SilverRock Resort), the City
entered into agreements with the project developer to support the continued advancement and protection of the
project site. In August 2024, the developer filed for Chapter 11 bankruptcy protection. Subsequent to the
bankruptcy filing, the City Council approved court-authorized debtor-in-possession (DIP) financing in an amount
not to exceed $11,000,000 to fund site remediation, project security, and costs associated with the bankruptcy
proceedings and transition to new project ownership. The DIP financing is evidenced by formal agreements
approved by the Bankruptcy Court and is secured by a super-priority lien on the debtor’s assets. As of June 30,
2025, the City advanced $5,865,124 under the DIP financing arrangements. The advances bear interest at a rate
tied to the Local Agency Investment Fund (LAIF) and are expected to be repaid upon specified events, including
the sale, transfer, or refinancing of project assets, or in accordance with the approved reorganization plan. The
amounts advanced by the City related to the Talus La Quinta project are reported as notes receivable or advances
and are evaluated for collectability in accordance with applicable accounting standards.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 3 - NOTES RECEIVABLE
54
95
Capital asset activity for governmental activities for the year ended June 30, 2025, is as follows:
Governmental activities:
Capital assets, not being depreciated/amortized
Land $ 87,280,570 $ - $- $- $ 87,280,570
Right of way 286,074,348 -- - 286,074,348
Construction-in-progress 26,285,937 13,546,683 - (3,124,987) 36,707,633
Total capital assets, not being depreciated/amortized 399,640,855 13,546,683 - (3,124,987) 410,062,551
Capital assets, being depreciated
Buildings and improvements 82,645,300 565,681 (109,569) 466,622 83,568,034
Equipment and furniture 4,110,624 828,726 (65,359) - 4,873,991
Vehicles 2,379,126 239,230 (57,247) - 2,561,109
Infrastructure 271,389,835 34,900 - 2,658,365 274,083,100
Right to use lease and subscription assets
Building 65,776 - - - 65,776
Equipment 49,487 - - - 49,487
Vehicles 21,893 - (21,893)- -
Software as a service 1,018,278 1,236,138 (289,178)- 1,965,238
Total right to use lease and subscription assets 1,155,434 1,236,138 (311,071) - 2,080,501
Total capital assets, being depreciated 361,680,319 2,904,675 (543,246) 3,124,987 367,166,735
Less accumulated depreciation
Buildings and improvements 47,483,081 2,569,200 (8,453) - 50,043,828
Equipment and furniture 2,611,209 519,466 (65,359) - 3,065,316
Vehicles 1,356,916 366,169 (57,247) - 1,665,838
Infrastructure 159,544,947 6,978,397 - - 166,523,344
Total accumulated depreciation 210,996,153 10,433,232 (131,059) - 221,298,326
Less right to use lease and subscription assets accumulated amortization
Building 21,925 32,889 - - 54,814
Equipment 7,104 9,898 - - 17,002
Vehicles 17,121 4,772 (21,893) - -
Software as a service 707,048 400,061 (289,178) - 817,931
Total accumulated amortization 753,198 447,620 (311,071) - 889,747
Total accumulated depreciation and amortization 211,749,351 10,880,852 (442,130) - 222,188,073
Total capital assets, being depreciated/amortized, net 149,930,968 (7,976,177) (101,116) 3,124,987 144,978,662
Total governmental activities capital assets $ 549,571,823 $ 5,570,506 $ (101,116) $ - $ 555,041,213
Balance Balance
June 30, 2024 Additions Deletions Transfers June 30, 2025
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 4 - CAPITAL ASSETS
55
96
Depreciation and amortization expense was charged to the following functions in the Statement of Activities:
General government $ 418,689
Public safety 233,646
Community services 1,227,439
Public works 7,190,496
Community development 24,630
Internal service funds *1,785,952
Total depreciation/amortization expense $ 10,880,852
Capital asset activity for business- type activities for the year ended June 30, 2025, is as follows:
Balance Balance
June 30, 2024 Additions Deletions June 30, 2025
Business-type activities:
Capital assets, not being depreciated
Land $ 39,712,955 $ - $- $ 39,712,955
Construction-in-progress - - --
Total capital assets, not being depreciated/amortized 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 65,477 (48,666) 1,687,104
Vehicles 946,816 - 946,816
Software 20,255 - - 20,255
Total capital assets, being depreciated 9,273,829 65,477 (48,666) 9,290,640
Right to use lease assets, being amortized
Equipment 483,074 - (330,811) 152,263
Total depreciable assets 9,756,903 65,477 (379,477) 9,442,903
Less accumulated depreciation
Buildings and improvements 4,366,914 214,546 - 4,581,460
Equipment and furniture 1,653,826 33,415 (48,666) 1,638,575
Vehicles 79,473 191,587 - 271,060
Software 20,255 - - 20,255
Total accumulated depreciation 6,120,468 439,548 (48,666) 6,511,350
Accumulated amortization, equipment 361,977 70,795 (330,811) 101,961
Total accumulated depreciation and amortization 6,482,445 510,343 (379,477) 6,613,311
Total capital assets, being depreciated/amortized, net 3,274,458 (444,866) - 2,829,592
Total business-type activities capital assets $ 42,987,413 $ (444,866) $ - $ 42,542,547
Depreciation and amortization expense was charged to following functions in the Statement of Activities:
Golf Course $ 510,343
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 4 - CAPITAL ASSETS (CONTINUED)
56
97
The following is a summary of changes in governmental long-term liabilities of the City for the fiscal year ended
June 30, 2025:
Balance Balance Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year
Governmental activities
Compensated absences payable*$ 1,185,597 $ 455,691 $ - $ 1,641,288 $ 746,511
Leases 91,795 - 47,668 44,127 20,986
Subscription IT liabilities 282,309 1,074,467 299,955 1,056,821 317,070
Total governmental activities $ 1,559,701 $ 1,530,158 $ 347,623 $ 2,742,236 $ 1,084,567
*Compensated absences shown as a net change.
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 2029. The lease agreements have interest rates between 2.46%
to 3.74% based on the City's estimated incremental borrowing rate at the inception of the lease. As of June 30,
2025, the net right to use asset balance is $43,447 and the lease liability balance is $44,127. The current year
amortization and interest expense associated with the lease activities was $47,559 and $2,347.
Remaining principal and interest payments on the lease are as follows:
Year
Ending
June 30, Principal Interest
2027 $ 20,986 $ 1,012
2028 10,060 608
2029 10,418 247
2030 2,663 3
Totals $ 44,127 $ 1,870
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 2031. 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, 2025, the net right to use
asset balance is $1,147,307 and the subscription liability balance is $1,056,821. The current year amortization
and interest expense associated with the lease activities was $400,061 and $10,759.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 5 - CHANGES IN LONG-TERM LIABILITIES
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98
Principal and interest payments on the SBITAs are as follows:
Year
Ending
June 30, Principal Interest
2026 $ 317,070 $ 36,582
2027 338,967 25,555
2028 265,823 13,737
2029 86,732 4,167
2030 44,244 1,655
Thereafter 3,985 115
Totals $ 1,056,821 $ 81,811
The following is a summary of changes in business- type activities long-term liabilities of the City for the fiscal year
ended June 30, 2025:
Balance Balance Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year
Business-Type Activities
Leases $ 123,859 $ - $ 72,562 $ 51,297 $ 32,028
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 2.46% to 3.91%
based on the City's incremental borrowing rate at the inception of the lease. As of June 30, 2025, the net right to
use asset balance is $50,302 and the lease liability balance is $51,297. The current year amortization and interest
expense associated with the lease activities was $70,795 and $2,821.
Remaining principal and interest payments on the leases are as follows:
Year
Ending
June 30,Principal Interest
2026 $ 32,028 $ 1,417
2027 19,269 241
Totals $ 51,297 $ 1,658
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 5 - CHANGES IN LONG-TERM LIABILITIES (CONTINUED)
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The City has accrued receivables for three land leases. The remaining receivable for these leases was
$2,170,323 for the year ended June 30, 2025. Deferred inflows related to these leases were $2,021,426 as of
June 30, 2025. Interest revenue recognized on these leases was $55,425 for the year ended June 30, 2025.
Principal receipts of $105,696 were recognized during the fiscal year. The interest rate on the leases ranges from
3.06 to 3.50 percent. Final receipt is expected in fiscal year 2060.
Year
Ending
June 30, Principal Interest
2026 $ 113,401 $ 66,527
2027 121,478 63,848
2028 129,866 61,020
2029 138,809 57,804
2030 142,679 54,413
2031-2035 210,506 242,206
2036-2040 279,923 201,252
2041-2045 279,174 150,810
2046-2050 173,840 118,141
2051-2055 257,647 80,840
2056-2060 323,000 27,192
Totals $ 2,170,323 $ 1,124,053
NOTE 7 - INTERFUND RECEIVABLES AND PAYABLES
The composition of current interfund receivable and payable balances is as follows:
Due to Other Funds Due to Other Funds Due to Other FundsDue from Other
Funds Housing Authority Capital Improvement Non-Major Governmental Total
General Fund $ 2,132,708 $ 2,271,106 $ 780,739 $ 5,184,553
NOTE 8 - INTERFUND TRANSFERS
Interfund balances reflect short term borrowings for deficit cash balances at June 30, 2025.
Transfers Out
General Non-major
Transfers In Fund Governmental Total
General Fund $ - $ 4,993,504 $ 4,993,504
Capital Improvements 4,182,099 2,625,101 6,807,200
Non-Major Funds 3,052,000 - 3,052,000
Golf Course Fund 1,300,000 - 1,300,000
Total $ 8,534,099 $ 7,618,605 $ 16,152,704
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 6 - LEASES - LESSOR ACTIVITIES
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100
a.$4,182,099 was transferred from the General Fund to the Capital Improvement Fund to fund various
capital projects.
b. $2,625,101 was transferred to the Capital Improvement Fund from various non-major funds to support
various capital project operations and expenses.
c. $3,052,000 was transferred from the General Fund to various non-major funds to support various
administrative operations and expenses within the City.
d. $1,300,000 was transferred from the General Fund to the Golf Course Fund to subsidize operations.
e. $4,993,504 was transferred from the Disaster Recovery Fund to the General Fund from ARPA funding to
cover general fund operations- police services.
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.
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, 2025 are summarized as follows:
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%7.75%
Required employer contributions rates 14.130%10.150%7.870%
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 8 - INTERFUND TRANSFERS (CONTINUED)
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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 $4,931,801 for the year ended June 30, 2025.
Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to
Pensions
As of June 30, 2025, the City reported a liability of $608,374 for its proportionate share of the collective net
pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023. 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, 2024 and 2025 is as follows:
Proportion - June 30, 2024 0.0216 %
Proportion - June 30, 2025 0.0050 %
Change - Increase (Decrease) -0.0166 %
For the year ended June 30, 2025, the City recognized pension expense of $1,019,989.
At June 30, 2025, the City reported deferred outflows and deferred inflows of resources related to pensions as
follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the measurement date $ 4,931,801 $ -
Changes in assumptions 15,636 -
Differences between expected and actual experience 52,600 2,052
Net difference between projected and actual earnings on pension plan investments 35,023 -
Change in employer's proportion - 4,479,747
Difference between the city's contribution and proportionate share of contributions 5,337,063 610,586
Total $ 10,372,123 $ 5,092,385
The $4,931,801 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, 2026.
Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be
recognized as pension expense as follows:
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 9 - DEFINED BENEFIT PENSION PLAN (CONTINUED)
61
102
Deferred
Outflows/(Inflows)
Year ended June 30, of Resources
2026 $ 153,717
2027 393,587
2028 (187,365)
2029 (12,002)
Total $ 347,937
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2024 ( the measurement date), the total pension liability was
determined by rolling forward the June 30, 2023 total pension liability. The total pension liability in the June 30,
2023 actuarial valuation was determined using the following actuarial methods and assumptions:
Miscellaneous
Valuation Date June 30, 2023
Measurement Date June 30, 2024
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
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 9 - DEFINED BENEFIT PENSION PLAN (CONTINUED)
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103
These geometric rates of return are summarized in the following table:
Strategic
Asset Class Allocation Real Return
Global equity-cap-weighted 30.00 % 4.54 %
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 %
Emerging market debt 5.00 % 2.48 %
Private debt 5.00 % 3.57 %
Real assets 15.00 % 3.21 %
Leverage (5.00) % (0.59) %
Total 100 %
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:
Discount Current Discount
Rate 1%Discount Rate Rate +1%
(5.90%)(6.90%)(7.90%)
Net Pension Liability/(Asset)$ 9,569,984 $ 608,374 $ (6,768,350)
Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial
reports.
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, 2025, there was one plan member. There
are no required contributions by plan members. During the 2024-2025 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 agent, multiple-employer defined benefit healthcare plan. The City contributes
on behalf of all eligible retirees’ $157/month for the calendar year 2024 and $158/month for calendar year 2025,
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 9 - DEFINED BENEFIT PENSION PLAN (CONTINUED)
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104
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, 2024, the most recent valuation date, the following current and former employees were covered by
the benefit terms of the plan:
Active employees 98
Inactive employees or beneficiaries currently receiving benefits 14
Total 112
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, 2025, the City’s cash contributions to the plan including the
implied subsidy were $50,868.
Net OPEB Liability/( Asset)
Actuarial Assumptions – The net OPEB liability/( asset) in the June 30, 2024, actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.10%
Inflation 2.30%
Investment Rate of Return 6.10%
Mortality (1)
Healthcare Trend Rate 5.10% for fiscal year 2025,
gradually decreasing to an
ultimate rate of 3.94% in fiscal
year 2075.
(1) Derived using CalPERS Membership Date for all Funds
Mortality rates were based on the CalPERS 2021 Mortality pre-retirement and post-retirement.
Changes of Assumptions
Healthcare trend rates were decreased from a rate of 6.5% decreasing gradually to an ultimate rate of 3.73% to
5.10% decreasing gradually to an ultimate rate of 3.94% for the valuation as of June 30, 2024.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 11 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED)
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105
Discount Rate
The discount rate used to measure the total OPEB liability was 6.10 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, 2025 are as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a)(b) (c) = (a) - (b)
Balance at June 30, 2024 $ 1,522,159 $ 1,856,315 $ (334,156)
Changes recognized for the
measurement period:
Service cost 88,030 - 88,030
Interest on total OPEB liability 87,019 - 87,019
Changes of assumptions (42,148) - (42,148)
Contributions-employer - 56,838 (56,838)
Net investment income - 151,022 (151,022)
Benefit payments, including refunds of
employee contributions (56,838) (56,838)-
Administrative expense -(931)931
Net changes during 2024-25 (179,664) 150,091 (329,755)
Balance at June 30, 2025 $ 1,342,495 $ 2,006,406 $ (663,911)
Sensitivity of the Net OPEB Asset to Changes in the Discount Rate
The following presents the net OPEB asset of the City, as well as what the City’s net OPEB asset would be if it
were calculated using a discount rate that is 1-percentage- point lower (5.10%) or 1-percentage- point higher
(7.10%) than the current discount rate:
Discount Current Discount
Rate -1% Discount Rate Rate +1%
(5.10%)(6.10%)(7.10%)
Net OPEB liability/(asset) $ (494,266) $ (663,911) $ (806,576)
1% Decrease Current Trend Rate 1% Increase
(4.10% decreasing (5.10% decreasing (6.5% decreasing
to 2.94%)to 3.94%)to 4.94%)
Net OPEB liability/(asset) $ (837,779) $ (663,911) $ 447,899
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 11 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED)
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106
For the year ended June 30, 2025, the City recognized OPEB expense of $27,289. At June 30, 2025, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the measurement date $ 50,868 $ -
Changes of assumptions 40,483 55,800
Differences between expected and actual experience 68,228 669,428
Net difference between projected and actual earnings on OPEB plan investments 81,448 -
Total $ 241,027 $ 725,228
The $50,868 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, 2026. Other amounts reported as deferred outflows or deferred inflows of resources related to
OPEB will be recognized in as OPEB expense as follows:
Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2025 $ (48,538)
2026 (4)
2027 (76,129)
2028 (82,987)
2029 (76,502)
Thereafter (250,909)
Total $ (535,069)
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, 2025 was $6,172,305. 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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 11 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED)
66
107
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. The total funding requirement
for primary self-insurance programs is based on an 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/
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 2024-25 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
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 13 - RISK MANAGEMENT, CALIFORNIA
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108
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 $90,687,543. 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 $68,556,792. 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.
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 2024-2025.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 13 - RISK MANAGEMENT (CONTINUED)
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109
Fund Balance Classifications
At June 30, 2025, the governmental funds report the following fund balance classifications:
General Housing Authority
Capital
Improvement
Total Nonmajor
Funds
Total Governmental
Funds
Nonspendable
Notes and loans receivable $ 5,865,124 $ - $- $- $ 5,865,124
Land held for resale 5,403,652 -- -5,403,652
Prepaid costs 36,870 -- 3,750 40,620
Advances to Successor Agency* 14,375,798 -- - 14,375,798
Total nonspendable 25,681,444 - - 3,750 25,685,194
Restricted
General government - - - 841,751 841,751
Public safety - - - 989,756 989,756
Community services - - - 16,774,731 16,774,731
Planning and development - 24,528,484 - 4,658,704 29,187,188
Public works --- 8,891,020 8,891,020
Capital projects --- 11,747,272 11,747,272
Section 115 Trust 6,172,305 - - - 6,172,305
Total restricted 6,172,305 24,528,484 - 43,903,234 74,604,023
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
Total committed 45,000,000 - - - 45,000,000
Assigned
Public safety 19,391,133 - - - 19,391,133
Sales Tax Reserve 29,623,592 - - - 29,623,592
Capital projects 31,778,242 - - - 31,778,242
Carryovers 850,000 850,000
Total assigned 81,642,967 - - - 81,642,967
Unassigned 84,454,583 - (6,859,124) (1,875,244) 75,720,215
Total fund balances (deficits)$ 242,951,299 $ 24,528,484 $ (6,859,124) $ 42,031,740 $ 302,652,399
*This long-term receivable is included within the Due from Other Governments line item on the balance sheet.
Fund Balance Commitments
In the governmental fund financial statements, committed reserves include:
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 14 - FUND BALANCE
69
110
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, 2025, 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, 2025, the City has committed $13,000,000 to this category.
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, 2025, 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, 2025, the City has committed $12,000,000 to this category.
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, 2025 is $19,391,133.
Assigned to capital projects is comprised of carryover balances for capital projects. The capital project carryover
balances as of June 30, 2025 are $31,778,242. Accumulated resources related to the City’s sales tax Measure G
is $29,623,592 as of June 30, 2025.
Deficit Fund Balance
At June 30, 2025, the following funds had deficit fund balances:
Nonmajor Special Revenue Funds
Federal Assistance (21,157)
Quimby (735,460)
Nonmajor Capital Projects Fund
Library Development (1,119,421)
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 14 - FUND BALANCE (CONTINUED)
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111
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, 2025. 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, 2025, the
Golf Course had a loss before transfers of $2,620,084.
NOTE 16 - CONSTRUCTION COMMITMENTS
Various construction projects were in progress at June 30, 2025. 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, 2025, with an estimated cost to complete.
Expenditures
Contract to date as of Remaining
Project Project Number Amount June 30, 2025 Commitments
Capital Improvement Fund
Dune Palms Bridge Improvement 111205 $ 29,756,245 $ (29,354,322) $ 401,923
Madison Street Median Landscape Conversion 151604 1,300,000 (635,863) 664,137
La Quinta Landscape renovation Improvement 201603 9,963,148 (7,894,086) 2,069,062
Corporate Yard Admin Offices & Crew 201805 1,591,013 (531,076) 1,059,937
Village Art Plaza Promenade & Cultural Campus 201901 4,810,000 (1,227,979) 3,582,021
Avenue 50 Bridge Spanning The Evacuation Channel 201902 16,349,000 (275,328) 16,073,672
Hwy 111 Corridor Area Plan Implementation 201905 12,284,000 (1,298,756) 10,985,244
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 (953,534) 267,566
Fritz Burns Park Improvements 202102 11,350,000 (1,426,971) 9,923,029
City Hall Capacity Improvements 202202 800,000 (75) 799,925
Avenue 50 Widening Improvements 202205 1,118,509 (45,804) 1,072,705
Phase II Camera System 202212 1,651,756 (3,430) 1,648,326
Ave 58 Pavement Rehabilitation 202301 1,380,000 (67,766) 1,312,234
Washington Street Connector 202309 1,200,000 (77,413) 1,122,587
SilverRock Dust Control Improvements 202310 1,000,000 - 1,000,000
Citywide Dog Park Improvements 202407 1,500,000 (1,780) 1,498,220
Welcome Center Improvements 202409 750,000 (1,365) 748,635
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.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 15 - GOLF COURSE MANAGEMENT AGREEMENT
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112
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).
Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following:
Cash and investments pooled with City $ 15,777,560
Cash and investments with fiscal agent 23,252
Total cash and investments $ 15,800,812
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, 2025, 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:
Balance Balance
June 30, 2024 Additions Deletions June 30, 2025
Deferred charge on refunding $ 13,516,518 $ - $ 1,124,994 $ 12,391,524
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 17 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(CONTINUED)
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113
Long-Term Debt
A description of long-term debt outstanding of the Successor Agency as of June 30, 2025, follows:
Amount
Balance Balance Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year
Tax allocation bonds $ 147,865,000 $ - $ 13,355,000 $ 134,510,000 $ 13,485,000
City Loans 21,404,721 70,843 3,505,817 17,969,747 3,575,934
Unamortized premiums/discounts (164,896) - (10,638) (154,258) -
Total $ 169,104,825 $ 70,843 $ 16,850,179 $ 152,325,489 $ 17,060,934
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 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, 2025, is
$23,850,00 with an unamortized discount of $154,258.
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.
Year Ending June 30,Principal Interest Total
2026 $ 1,565,000 $ 937,680 $ 2,502,680
2027 1,620,000 882,846 2,502,846
2028 1,675,000 824,065 2,499,065
2029 1,730,000 761,188 2,491,188
2030 1,800,000 692,901 2,492,901
2031-2035 10,585,000 2,149,597 12,734,597
2036-2040 4,605,000 385,246 4,990,246
Totals $ 23,580,000 $ 6,633,523 $ 30,213,523
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 17 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(CONTINUED)
73
114
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, 2025 were $110,930,000. The principal and interest on the bonds are
payable solely from the pledged tax revenues allocated to the Successor Agency from the project areas.
Future debt service requirements on these bonds are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 11,920,000 $ 2,227,651 $ 14,147,651
2027 12,060,000 2,072,532 14,132,532
2028 12,240,000 1,881,273 14,121,273
2029 12,450,000 1,652,389 14,102,389
2030 12,690,000 1,388,145 14,078,145
2031-2035 49,570,000 2,582,696 52,152,696
Totals $ 110,930,000 $ 11,804,686 $ 122,734,686
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, 2025, principal and capitalized interest due to the City of La Quinta was
$17,969,747 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:
Year Ending June 30, Principal Interest Total
2026 $ 3,575,934 $ -$ 3,575,934
2027 3,647,452 -3,647,452
2028 3,791,244 -3,791,244
2029 3,720,401 -3,720,401
2030 3,234,716 -3,234,716
Totals $ 17,969,747 $ -$ 17,969,747
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 17 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(CONTINUED)
74
115
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 $152,948,209 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 $20,261,137 and the debt service obligation on the bonds was $16,696,117.
Insurance
The Successor Agency of the Former Agency is covered under the insurance policy of the City of La Quinta at
June 30, 2025.
NOTE 18 - SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through December 19, 2025, the date on
which these financial statements were available to be issued. Subsequent to year end, on December 9, 2025,
escrow closed on the sale of approximately 130 acres of the SilverRock/Talus project to Turnbridge Equities
(TBE), following approval by the U.S. Bankruptcy Court in October 2025. As a result of the closing, the City’s
Debtor-In-Possession (DIP) financing loan provided to the prior developer was repaid in full. A reinstated and
amended development agreement and related project approvals previously authorized by the City Council now
govern the project under the new ownership. The related bankruptcy proceedings remain ongoing, as an appeal
filed by a creditor is pending as of the date of issuance of these financial statements. Management has concluded
that no other material subsequent events have occurred since June 30, 2025, that required recognition or
disclosure in these financial statements.
CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 17 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(CONTINUED)
75
116
REQUIRED SUPPLEMENTARY INFORMATION
76
117
BUDGETARY COMPARISON SCHEDULES
77
118
General Fund
REVENUES
Taxes $ 74,270,000 $ 76,825,000 $ 79,662,664 $ 2,837,664
Licenses and permits 2,386,500 2,551,500 2,682,352 130,852
Intergovernmental 253,000 573,000 915,126 342,126
Charges for Services 1,028,700 1,238,700 1,413,876 175,176
Use of money and property 3,890,000 6,925,000 10,255,043 3,330,043
Fines and forfeitures 341,000 416,000 389,449 (26,551)
Miscellaneous 745,100 1,025,100 1,335,970 310,870
Total revenues 82,914,300 89,554,300 96,654,480 7,100,180
EXPENDITURES
Current:
General government
City council 346,400 346,400 320,910 25,490
City manager 1,641,100 1,735,600 1,468,243 267,357
City attorney 800,000 800,000 1,519,881 (719,881)
Human resources 745,900 858,600 733,241 125,359
City clerk 1,406,570 1,412,570 1,181,644 230,926
Finance 2,103,500 2,113,700 1,873,822 239,878
Central services 2,471,600 6,598,745 5,364,371 1,234,374
Public safety
Police 19,608,300 19,760,800 17,338,320 2,422,480
Fire 10,442,110 10,480,230 9,619,773 860,457
Community development
Community services administration 716,400 616,800 452,848 163,952
Wellness center operations 658,600 655,300 638,360 16,940
Recreation program & special events 1,956,000 2,069,500 1,549,701 519,799
Parks and recreation 4,538,300 5,706,500 5,556,091 150,409
Marketing & community relations 1,932,600 1,986,500 1,825,073 161,427
Public buildings 1,875,750 1,885,400 1,710,977 174,423
Planning and development
Design & development administration 826,800 822,150 730,539 91,611
Planning 856,900 894,700 772,682 122,018
Building 1,513,600 1,524,800 1,467,707 57,093
Code compliance/animal control 1,821,340 1,801,240 1,494,685 306,555
Public safety administration 269,890 269,440 320,433 (50,993)
The Hub 1,499,875 1,509,175 1,338,457 170,718
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
General Fund
For the Year Ended June 30, 2025
78
119
Public works
Administration 835,797 839,897 615,287 224,610
Development services 539,383 542,883 410,968 131,915
Maintenance/operations - street 1,036,550 1,081,650 678,460 403,190
Engineering services 1,234,400 1,237,500 903,515 333,985
Capital Outlay 210,000 610,000 62,305 547,695
Total expenditures 61,887,665 68,160,080 59,948,293 8,211,787
Excess (deficiency) of revenues over (under)
expenditures 21,026,635 21,394,220 36,706,187 15,311,967
OTHER FINANCING SOURCES (USES)
Transfers In - 4,993,504 4,993,504 -
Transfers Out (21,474,000) (40,288,508) (8,534,099) 31,754,409
Total other financing sources (uses)(21,474,000) (35,295,004) (3,540,595) 31,754,409
Net change in fund balance $ (447,365) $ (13,900,784) 33,165,592 $ 47,066,376
Fund balance-beginning 209,785,707
Fund balance-ending $ 242,951,299
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
General Fund
For the Year Ended June 30, 2025
79
120
Housing Authority
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 1,429,000 $ 1,614,000 $ 2,323,822 $ 709,822
Miscellaneous 101,000 101,000 60,486 (40,514)
Total revenues 1,530,000 1,715,000 2,384,308 669,308
EXPENDITURES
Current:
Community services 250,000 350,000 301,600 48,400
Planning and development 1,765,440 2,298,618 2,277,769 20,849
Capital outlay 200,000 450,000 32,285 417,715
Total expenditures 2,215,440 3,098,618 2,611,654 486,964
Net change in fund balances $ (685,440) $ (1,383,618) (227,346) $ 1,156,272
Fund balance-beginning 24,755,830
Fund balance-ending $ 24,528,484
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Housing Authority
For the Year Ended June 30, 2025
80
121
Schedule of Proportionate Share of the Net Pension Liability - Miscellaneous Plan
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
2025 0.0050% $ 608,374 $ 7,743,887 7.9%-%
2024 0.0216%2,699,409 6,682,312 40.4%76.20%
2023 0.1173%13,550,553 6,223,072 217.7%76.70%
2022 0.1422%7,691,773 6,238,425 123.3%88.30%
2021 0.1333%14,502,311 7,066,830 205.2%75.10%
2020 0.1313%13,458,200 6,669,204 201.8%75.30%
2019 0.1287%12,403,691 6,064,875 204.5%75.30%
2018 0.1272%12,612,523 5,739,416 219.8%73.30%
2017 0.1257%10,874,098 5,569,002 195.3%74.10%
2016 0.1260%8,651,290 5,480,758 157.8%78.40%
Notes to Schedule of Proportionate Share of the Net Pension Liability:
Benefit Changes : None
Changes of Assumptions : None
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.
CITY OF LA QUINTA, CALIFORNIA
Schedule of Proportionate Share of Net Pension Liability - Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years
81
122
Schedule of Plan Contributions - Miscellaneous Plan
2025 $ 1,001,100 $ 4,931,801 $ (3,930,701) $ 8,554,880 57.6%
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%
Fiscal Year Actuarially Actual Contribution Contrbution as a
Ending Determined Employer Deficiency Covered % of Covered
June 30, Contribution Contributions (Excess)Payroll Payroll
Notes to Schedule:
Valuation Date:June 30, 2024
Methods and assumptions used to determine contribution rates:
Actuarial cost Entry age normal
Amortization method Level percentage of payroll, closed
Asset valuation method Fair Value
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll growth 2.75%
Investment rate of return 6.9% net of pension investment and administrative expenses, including inflation.
Retirement age The probabilities of retirement are based on the 2017 CalPERS Experience Study for the
period from 1997 to 2015.
Mortality 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.
CITY OF LA QUINTA, CALIFORNIA
Schedule of Plan Contributions - Miscellaneous Plan
As of June 30, For the Last Ten Fiscal Years
82
123
Schedule of OPEB Contributions
2025 $ 21,030 $ 50,868 $ (29,838) $ 7,777,068 0.7%
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%
Fiscal Year Actuarially Actual Contribution Contrbution as a
Ending Determined Employer Deficiency Covered % of Covered
June 30, Contribution Contributions (Excess)Payroll Payroll
Notes to Schedule:
Actuarial Cost Method Entry Age Normal
Amortization Valuation Method/Period Level percent of payroll over a closed rolling 30-year period
Asset Valuation Method Fair Value
Inflation 2.30%
Payroll Growth 3.00% per annum, in aggregate
Investment Rate of Return 5.50% per annum
Healthcare cost-trend rates
Assumed to start at 6.5% and gradually decrease each year to an ultimate rate of
3.73% in
2075
Retirement Age
Based on assumptions for Public Agency Miscellaneous and Police members
published in
the 2021 CalPERS Experience Study.
Mortality
Based on CalPERS Experience Study and Review of Actuarial Assumptions
published in
November 2021 for Public Agency Miscellaneous and Police members.
1 Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown.
CITY OF LA QUINTA, CALIFORNIA
Schedule of OPEB Contributions
As of June 30, For the Last Ten Fiscal Years1
83
124
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84
125
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021
TOTAL OPEB LIABILITY
Service cost $ 88,030 $ 85,632 $ 85,049 $ 87,732
Interest on total pension liability 87,019 80,987 107,396 102,210
Changes of assumptions (42,148) - 26,883 -
Difference between expected and actual experience (255,727) (1,901) (623,785) (1,617)
Benefit payments, including refunds of employee contributions (56,838) (58,070) (94,021) (89,947)
Net change in total OPEB liability (179,664) 106,648 (498,478) 98,378
Total OPEB liability-beginning 1,522,159 1,415,511 1,913,989 1,815,611
Total OPEB liability-ending (a)1,342,495 1,522,159 1,415,511 1,913,989
PLAN FIDUCIARY NET POSITION
Contributions-employer 56,838 58,070 94,021 89,947
Net investment income 151,022 63,830 (257,883) 336,983
Benefit payments, including refunds of employee contributions (56,838) (58,070) (94,021) (89,947)
Administrative expense (931)(514)(518)(624)
Net change in fiduciary net position 150,091 63,316 (258,401) 336,359
Plan fiduciary net position-beginning 1,856,315 1,792,999 2,051,400 1,715,041
Plan fiduciary net position-ending (b)2,006,406 1,856,315 1,792,999 2,051,400
Net OPEB liability/(asset) (a) - (b)$ (663,911) $ (334,156) $ (377,488) $ (137,411)
Plan fiduciary net position as a percentage of the total OPEB
liability 149.5% 122.0% 126.7% 107.2%
Covered-employee payroll $ 8,532,271 $ 6,682,312 $ 6,223,072 $ 6,238,425
Plan net OPEB liability/(asset) as a percentage of covered-
employee payroll (7.8)% (5.0)% (6.1)% (2.2)%
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
Benefit Changes : None
Changes of Assumptions : None
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only eight years are shown.
CITY OF LA QUINTA, CALIFORNIA
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios
As of June 30, For the Last Ten Fiscal Years1
85
126
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%100.40%-%
$ 7,066,830 $ 6,669,204 $ 6,064,875 $ 5,603,428
1.4%(0.7)%(0.1)%24.6%
CITY OF LA QUINTA, CALIFORNIA
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios
As of June 30, For the Last Ten Fiscal Years1
86
127
Notes to Required Supplementary InformationGeneral 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 Housing Grant and Transportation Uniform Mitigation Fee Special
Revenue Funds.
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, 2025:
General Fund Budget Actual Variance
General government
City manager $ 1,735,600 $ 1,468,243 $ 267,357
City attorney 800,000 1,519,881 (719,881)
Planning and development
Public safety administration 269,440 320,433 (50,993)
CITY OF LA QUINTA, CALIFORNIA
Notes to Required Supplementary Information
For the Year Ended June 30, 2025
87
128
SUPPLEMENTARY INFORMATION:
Combining and Individual Fund Schedules
88
129
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:
Disaster Recovery Fund - To account for 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.
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.
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.
CITY OF LA QUINTA, CALIFORNIA
Other Governmental Funds
For the Year Ended June 30, 2025
89
130
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.
CITY OF LA QUINTA, CALIFORNIA
Other Governmental Funds
For the Year Ended June 30, 2025
90
131
Combining Balance Sheet - Nonmajor Governmental Funds
Special Revenue Funds
Disaster
Recovery State Gas Tax
Library and
Museum
Federal
Assistance
ASSETS
Cash and investments $ 5,830,090 $ 3,025,972 $ 14,695,500 $ -
Receivables:
Accounts - - - -
Taxes - 276,793 - -
Accrued interest 5,165 2,681 13,019 -
Prepaid costs - - - -
Due from other governments - - 1,501,279 138,249
Total assets $ 5,835,255 $ 3,305,446 $ 16,209,798 $ 138,249
LIABILITIES
Accounts payable $ - $ 15,036 $ 431,176 $ -
Accrued liabilities -42,298 3,261 -
Unearned revenues 4,993,504 - - -
Due to other governments - - - -
Due to other funds - - - 21,157
Total liabilities 4,993,504 57,334 434,437 21,157
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - 138,249
Total deferred inflows of resources - - - 138,249
FUND BALANCES (DEFICITS)
Restricted 841,751 3,248,112 15,775,361 -
Unassigned - - - (21,157)
Total fund balances (deficits)841,751 3,248,112 15,775,361 (21,157)
Total liabilities, deferred inflows of
resources, and fund balances (deficits) $ 5,835,255 $ 3,305,446 $ 16,209,798 $ 138,249
CITY OF LA QUINTA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
91
132
Special Revenue Funds
State Law
Enforcement
Services
Lighting and
Landscaping Quimby
La Quinta
Public Safety
Officer
ASSETS
Cash and investments $ 741,389 $ 566,278 $ - $ 62,919
Receivables:
Accounts - - - -
Taxes -17,362 - -
Accrued interest 657 502 -56
Prepaid costs - - --
Due from other governments - - --
Total assets $ 742,046 $ 584,142 $ - $ 62,975
LIABILITIES
Accounts payable $ - $ 87,690 $ - $-
Accrued liabilities -19,101 --
Unearned revenues ----
Due to other governments ----
Due to other funds -- 735,460 -
Total liabilities - 106,791 735,460 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
FUND BALANCES (DEFICITS)
Restricted 742,046 477,351 -62,975
Unassigned - - (735,460) -
Total fund balances (deficits)742,046 477,351 (735,460) 62,975
Total liabilities, deferred inflows of
resources, and fund balances (deficits) $ 742,046 $ 584,142 $ - $ 62,975
CITY OF LA QUINTA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
92
133
Special Revenue Funds
Art in Public
Places
South Coast
Air Quality AB 939 Housing Grant
ASSETS
Cash and investments $ 998,485 $ 157,421 $ 702,871 $ 7,437
Receivables:
Accounts - - - -
Taxes - - - -
Accrued interest 885 140 623 7
Prepaid costs 3,750 - - -
Due from other governments -13,356 3,814 -
Total assets $ 1,003,120 $ 170,917 $ 707,308 $ 7,444
LIABILITIES
Accounts payable $ - $ 28,574 $ 6,515 $ -
Accrued liabilities -- - -
Unearned revenues -- - -
Due to other governments -- - -
Due to other funds -- - -
Total liabilities -28,574 6,515 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
FUND BALANCES (DEFICITS)
Restricted 999,370 142,343 700,793 7,444
Unassigned - - - -
Total fund balances (deficits)1,003,120 142,343 700,793 7,444
Total liabilities, deferred inflows of
resources, and fund balances (deficits) $ 1,003,120 $ 170,917 $ 707,308 $ 7,444
CITY OF LA QUINTA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
93
134
Special Revenue Funds
Law
Enforcement Measure A
Economic
Development AB 1379
ASSETS
Cash and investments $ 201,156 $ 4,821,707 $ 3,696,482 $ 124,790
Receivables:
Accounts - - 83,954 -
Taxes - 332,981 - -
Accrued interest 179 4,272 3,275 111
Prepaid costs - - - -
Due from other governments 11,343 - - -
Total assets $ 212,678 $ 5,158,960 $ 3,783,711 $ 124,901
LIABILITIES
Accounts payable $ 3,821 $ - $ 16,150 $ 384
Accrued liabilities - - - -
Unearned revenues - - - -
Due to other governments - - - -
Due to other funds 24,122 - - -
Total liabilities 27,943 - 16,150 384
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - 83,954 -
Total deferred inflows of resources - - 83,954 -
FUND BALANCES (DEFICITS)
Restricted 184,735 5,158,960 3,683,607 124,517
Unassigned - - - -
Total fund balances (deficits)184,735 5,158,960 3,683,607 124,517
Total liabilities, deferred inflows of
resources, and fund balances (deficits) $ 212,678 $ 5,158,960 $ 3,783,711 $ 124,901
CITY OF LA QUINTA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
94
135
Special Revenue
Funds Capital Projects Funds
Transportation
Uniform
Mitigation Fee
Maintenance
Facilities DIF Infrastructure Civic Center
ASSETS
Cash and investments $ 38,750 $ 127,671 $ 21,267 $ 2,052,322
Receivables:
Accounts - - - -
Taxes - - - -
Accrued interest -114 19 1,819
Prepaid costs - - - -
Due from other governments - - - -
Total assets $ 38,750 $ 127,785 $ 21,286 $ 2,054,141
LIABILITIES
Accounts payable $ 32,153 $ 626 $ - $ 2,460
Accrued liabilities - - --
Unearned revenues - - --
Due to other governments - - --
Due to other funds - - --
Total liabilities 32,153 626 -2,460
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
FUND BALANCES (DEFICITS)
Restricted 6,597 127,159 21,286 2,051,681
Unassigned - - - -
Total fund balances (deficits)6,597 127,159 21,286 2,051,681
Total liabilities, deferred inflows of
resources, and fund balances (deficits) $ 38,750 $ 127,785 $ 21,286 $ 2,054,141
CITY OF LA QUINTA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
95
136
Capital Project Funds
Transportation
Parks and
Recreation
Library
Development
Community
Center
ASSETS
Cash and investments $ 6,165,331 $ 1,687,887 $ - $ 904,687
Receivables:
Accounts - - - -
Taxes - - - -
Accrued interest 5,462 1,496 -802
Prepaid costs - - --
Due from other governments - - --
Total assets $ 6,170,793 $ 1,689,383 $ - $ 905,489
LIABILITIES
Accounts payable $ 8,018 $ 4,212 $ 794 $ 1,912
Accrued liabilities - - - -
Unearned revenues - - - -
Due to other governments - - 1,118,627 -
Due to other funds - - - -
Total liabilities 8,018 4,212 1,119,421 1,912
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
FUND BALANCES (DEFICITS)
Restricted 6,162,775 1,685,171 (794) 903,577
Unassigned - - (1,118,627) -
Total fund balances (deficits)6,162,775 1,685,171 (1,119,421) 903,577
Total liabilities, deferred inflows of
resources, and fund balances (deficits) $ 6,170,793 $ 1,689,383 $ - $ 905,489
CITY OF LA QUINTA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
96
137
Capital Projects Funds
Debt Service
Funds
Street
Facility Park Facility Fire Facility
Financing
Authority
Total
Nonmajor
Funds
ASSETS
Cash and investments $ 88,703 $ 8,355 $ 699,390 $ 750 $ 47,427,610
Receivables:
Accounts - - - - 83,954
Taxes - - - - 627,136
Accrued interest 79 8 620 - 41,991
Prepaid costs - - - - 3,750
Due from other governments - - - - 1,668,041
Total assets $ 88,782 $ 8,363 $ 700,010 $ 750 $ 49,852,482
LIABILITIES
Accounts payable $ - $- $ 738 $ 750 $ 641,009
Accrued liabilities -- - - 64,660
Unearned revenues -- - - 4,993,504
Due to other governments -- - - 1,118,627
Due to other funds -- - - 780,739
Total liabilities - - 738 750 7,598,539
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - 222,203
Total deferred inflows of resources - - - - 222,203
FUND BALANCES (DEFICITS)
Restricted 88,782 8,363 699,272 - 43,903,234
Unassigned - - - - (1,875,244)
Total fund balances (deficits)88,782 8,363 699,272 - 42,031,740
Total liabilities, deferred inflows of
resources, and fund balances (deficits) $ 88,782 $ 8,363 $ 700,010 $ 750 $ 49,852,482
CITY OF LA QUINTA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
97
138
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds
Special Revenue Funds
Disaster
Recovery State Gas Tax
Library and
Museum
Federal
Assistance
REVENUES
Taxes $ - $- $- $-
Assessments -- --
Intergovernmental 4,993,504 2,131,763 4,062,490 -
Use of money and property 400,401 154,074 724,012 82
Developer fees - - - -
Miscellaneous - - 6,072 -
Total revenues 5,393,905 2,285,837 4,792,574 82
EXPENDITURES
General government - - - -
Public safety - - - -
Community services - - 2,216,591 -
Planning and development - - - -
Public works - 1,695,795 -23,501
Capital outlay -10,768 119,320 -
Interest and fiscal charges --- -
Total expenditures - 1,706,563 2,335,911 23,501
Excess (deficiency) of revenues
over (under) expenditures 5,393,905 579,274 2,456,663 (23,419)
OTHER FINANCING SOURCES (USES)
Transfers in - 500,000 - -
Transfers out (4,993,504) (972,945) (341,286) -
Total other financing sources (uses)(4,993,504) (472,945) (341,286) -
Net change in fund balances 400,401 106,329 2,115,377 (23,419)
Fund balances (deficit)-beginning - 3,141,783 13,659,984 2,262
Change within financial reporting entity 441,350 - - -
Fund balances (deficit)-beginning, as restated 441,350 3,141,783 13,659,984 2,262
Fund balances (deficit)-ending $ 841,751 $ 3,248,112 $ 15,775,361 $ (21,157)
CITY OF LA QUINTA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
98
139
Special Revenue Funds
State Law
Enforcement
Services
Lighting and
Landscaping Quimby
La Quinta
Public Safety
Officer
REVENUES
Taxes $ - $- $- $-
Assessments - 991,288 --
Intergovernmental 194,664 -- -
Use of money and property 35,139 32,292 -3,175
Developer fees - - --
Miscellaneous -31,441 --
Total revenues 229,803 1,055,021 -3,175
EXPENDITURES
General government - - - -
Public safety 93,345 - - -
Community services - - - -
Planning and development - - - -
Public works - 3,972,828 - -
Capital outlay --- -
Interest and fiscal charges --- -
Total expenditures 93,345 3,972,828 - -
Excess (deficiency) of revenues
over (under) expenditures 136,458 (2,917,807) -3,175
OTHER FINANCING SOURCES (USES)
Transfers in - 2,500,000 -2,000
Transfers out ----
Total other financing sources (uses)- 2,500,000 -2,000
Net change in fund balances 136,458 (417,807) -5,175
Fund balances (deficit)-beginning 605,588 895,158 (735,460) 57,800
Change within financial reporting entity - - - -
Fund balances (deficit)-beginning, as restated 605,588 895,158 (735,460) 57,800
Fund balances (deficit)-ending $ 742,046 $ 477,351 $-$ (735,460) $ 62,975
CITY OF LA QUINTA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
99
140
Special Revenue Funds
Art in Public
Places
South Coast Air
Quality AB 939 Housing Grant
REVENUES
Taxes $ - $- $ 81,514 $ -
Assessments -- - -
Intergovernmental -51,145 -67,475
Use of money and property 51,323 7,572 36,127 237
Developer fees 101,384 - - -
Miscellaneous - - - -
Total revenues 152,707 58,717 117,641 67,712
EXPENDITURES
General government - - - -
Public safety - - - -
Community services 77,979 - - -
Planning and development -42,562 99,798 1
Public works --- -
Capital outlay 43,899 - - -
Interest and fiscal charges - - - -
Total expenditures 121,878 42,562 99,798 1
Excess (deficiency) of revenues
over (under) expenditures 30,829 16,155 17,843 67,711
OTHER FINANCING SOURCES (USES)
Transfers in 50,000 - - -
Transfers out (52,547) - - -
Total other financing sources (uses)(2,547) - - -
Net change in fund balances 28,282 16,155 17,843 67,711
Fund balances (deficit)-beginning 974,838 126,188 682,950 (60,267)
Change within financial reporting entity - - - -
Fund balances (deficit)-beginning, as restated 974,838 126,188 682,950 (60,267)
Fund balances (deficit)-ending $ 1,003,120 $ 142,343 $ 700,793 $ 7,444
CITY OF LA QUINTA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
100
141
Special Revenue Funds
Law
Enforcement Measure A
Economic
Development AB 1379
REVENUES
Taxes $ - $ 1,909,694 $ - $-
Assessments -- --
Intergovernmental 11,343 - - 16,994
Use of money and property 10,320 212,260 213,691 6,060
Developer fees - - - -
Miscellaneous - - - -
Total revenues 21,663 2,121,954 213,691 23,054
EXPENDITURES
General government - - - -
Public safety 19,398 - - -
Community services - - 11,353 -
Planning and development - - 4,661 1,697
Public works - - - -
Capital outlay - - - -
Interest and fiscal charges - - - -
Total expenditures 19,398 -16,014 1,697
Excess (deficiency) of revenues
over (under) expenditures 2,265 2,121,954 197,677 21,357
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - (430,043)- -
Total other financing sources (uses)- (430,043)- -
Net change in fund balances 2,265 1,691,911 197,677 21,357
Fund balances (deficit)-beginning 182,470 3,467,049 3,485,930 103,160
Change within financial reporting entity - - - -
Fund balances (deficit)-beginning, as restated 182,470 3,467,049 3,485,930 103,160
Fund balances (deficit)-ending $ 184,735 $ 5,158,960 $ 3,683,607 $ 124,517
CITY OF LA QUINTA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
101
142
Special
Revenue Funds Capital Projects Funds
Transportation
Uniform
Mitigation Fee
Maintenance
Facilities DIF Infrastructure Civic Center
REVENUES
Taxes $ - $- $- $-
Assessments -- --
Intergovernmental -- --
Use of money and property -15,735 1,092 103,344
Developer fees -28,897 -82,727
Miscellaneous ----
Total revenues -44,632 1,092 186,071
EXPENDITURES
General government - - - -
Public safety - - - -
Community services - - - -
Planning and development - - - -
Public works - - - -
Capital outlay - - - -
Interest and fiscal charges - - - -
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures -44,632 1,092 186,071
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - (280,000)- -
Total other financing sources (uses)- (280,000)- -
Net change in fund balances - (235,368)1,092 186,071
Fund balances (deficit)-beginning 6,597 362,527 20,194 1,865,610
Change within financial reporting entity - - - -
Fund balances (deficit)-beginning, as restated 6,597 362,527 20,194 1,865,610
Fund balances (deficit)-ending $ 6,597 $ 127,159 $ 21,286 $ 2,051,681
CITY OF LA QUINTA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
102
143
Capital Projects Funds
Transportation
Parks and
Recreation
Library
Development
Community
Center
REVENUES
Taxes $ - $- $- $-
Assessments -- --
Intergovernmental -- --
Use of money and property 312,600 89,096 -56,170
Developer fees 21,135 120,043 22,629 54,493
Miscellaneous - - - -
Total revenues 333,735 209,139 22,629 110,663
EXPENDITURES
General government - - - -
Public safety - - - -
Community services - - - -
Planning and development - - - -
Public works - - - -
Capital outlay - - - -
Interest and fiscal charges - - 23,423 -
Total expenditures - - 23,423 -
Excess (deficiency) of revenues
over (under) expenditures 333,735 209,139 (794) 110,663
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (38,968) (194,665) - (314,647)
Total other financing sources (uses)(38,968) (194,665) - (314,647)
Net change in fund balances 294,767 14,474 (794) (203,984)
Fund balances (deficit)-beginning 5,868,008 1,670,697 (1,118,627) 1,107,561
Change within financial reporting entity - - - -
Fund balances (deficit)-beginning, as restated 5,868,008 1,670,697 (1,118,627) 1,107,561
Fund balances (deficit)-ending $ 6,162,775 $ 1,685,171 $ (1,119,421) $ 903,577
CITY OF LA QUINTA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
103
144
Capital Projects Funds
Debt Service
Funds
Street
Facility Park Facility Fire Facility
Financing
Authority
Total
Nonmajor
Funds
REVENUES
Taxes $ - $- $- $- $ 1,991,208
Assessments -- -- 991,288
Intergovernmental -- -- 11,529,378
Use of money and property 4,551 429 35,301 750 2,505,833
Developer fees - - 24,682 - 455,990
Miscellaneous - - - - 37,513
Total revenues 4,551 429 59,983 750 17,511,210
EXPENDITURES
General government - - - 750 750
Public safety - - - - 112,743
Community services - - - - 2,305,923
Planning and development - - - - 148,719
Public works - - - - 5,692,124
Capital outlay - - - - 173,987
Interest and fiscal charges - - - - 23,423
Total expenditures - - - 750 8,457,669
Excess (deficiency) of revenues
over (under) expenditures 4,551 429 59,983 - 9,053,541
OTHER FINANCING SOURCES (USES)
Transfers in - - - - 3,052,000
Transfers out - - - - (7,618,605)
Total other financing sources (uses)- - - - (4,566,605)
Net change in fund balances 4,551 429 59,983 - 4,486,936
Fund balances (deficit)-beginning 84,231 7,934 639,289 - 37,103,454
Change within financial reporting entity - - - - 441,350
Fund balances (deficit)-beginning, as
restated 84,231 7,934 639,289 - 37,544,804
Fund balances (deficit)-ending $ 88,782 $ 8,363 $ 699,272 $ - $ 42,031,740
CITY OF LA QUINTA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
104
145
BUDGETARY COMPARISON SCHEDULES - SPECIAL REVENUE FUNDS
105
146
Disaster Recovery
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental Revenues $ - $- $ 4,993,504 $ 4,993,504
Use of Money and Property 30,000 300,000 400,401 100,401
Total revenues 30,000 300,000 5,393,905 5,093,905
OTHER FINANCING SOURCES (USES)
Transfers Out - (4,993,504) (4,993,504) -
Total other financing sources (uses)- (4,993,504) (4,993,504) -
Net change in fund balances $ 30,000 $ (4,693,504) 400,401 $ 5,093,905
Fund balance-beginning 441,350
Fund balance-ending $ 841,751
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Disaster Recovery
For the Year Ended June 30, 2025
106
147
State Gas Tax
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 2,069,000 $ 2,069,000 $ 2,131,763 $ 62,763
Use of money and property 20,000 80,000 154,074 74,074
Total revenues 2,089,000 2,149,000 2,285,837 136,837
EXPENDITURES
Current:
Public works 1,781,100 2,009,000 1,695,795 313,205
Capital outlay 200,000 650,000 10,768 639,232
Total expenditures 1,981,100 2,659,000 1,706,563 952,437
Excess (deficiency) of revenues
over (under) expenditures 107,900 (510,000) 579,274 1,089,274
OTHER FINANCING SOURCES (USES)
Transfers in 500,000 500,000 500,000 -
Transfers out (1,462,000) (3,118,103) (972,945) 2,145,158
Total other financing sources (uses)(962,000) (2,618,103) (472,945) 2,145,158
Net change in fund balances $ (854,100) $ (3,128,103) 106,329 $ 3,234,432
Fund balance-beginning 3,141,783
Fund balance-ending $ 3,248,112
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
State Gas Tax
For the Year Ended June 30, 2025
107
148
Library and Museum
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 3,000,000 $ 3,000,000 $ 4,062,490 $ 1,062,490
Use of money and property 140,000 365,000 724,012 359,012
Miscellaneous 3,000 3,000 6,072 3,072
Total revenues 3,143,000 3,368,000 4,792,574 1,424,574
EXPENDITURES
Current:
Community services 2,555,615 2,548,097 2,216,591 331,506
Capital outlay - 150,000 119,320 30,680
Total expenditures 2,555,615 2,698,097 2,335,911 362,186
Excess (deficiency) of revenues
over (under) expenditures 587,385 669,903 2,456,663 1,786,760
OTHER FINANCING SOURCES (USES)
Transfers out - (2,304,745) (341,286) 1,963,459
Total other financing sources (uses)- (2,304,745) (341,286) 1,963,459
Net change in fund balances $ 587,385 $ (1,634,842) 2,115,377 $ 3,750,219
Fund balance-beginning 13,659,984
Fund balance-ending $ 15,775,361
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Library and Museum
For the Year Ended June 30, 2025
108
149
Federal Assistance
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 190,000 $ 168,933 $ - $ (168,933)
Use of money and property - - 82 82
Total revenues 190,000 168,933 82 (168,851)
EXPENDITURES
Current:
Public works 23,500 23,500 23,501 (1)
Total expenditures 23,500 23,500 23,501 (1)
Excess (deficiency) of revenues
over (under) expenditures 166,500 145,433 (23,419) (168,852)
OTHER FINANCING SOURCES (USES)
Transfers out (175,000) (153,933) - (153,933)
Total other financing sources (uses)(175,000) (153,933) - (153,933)
Net change in fund balances $ (8,500) $ (8,500) (23,419) $ (14,919)
Fund balance-beginning 2,262
Fund balance-ending $ (21,157)
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Federal Assistance
For the Year Ended June 30, 2025
109
150
State Law Enforcement Services
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 100,000 $ 100,000 $ 194,664 $ 94,664
Use of money and property 3,000 3,000 35,139 32,139
Total revenues 103,000 103,000 229,803 126,803
EXPENDITURES
Current:
Public safety 100,000 100,000 93,345 6,655
Total expenditures 100,000 100,000 93,345 6,655
Net change in fund balances $ 3,000 $ 3,000 136,458 $ 133,458
Fund balance-beginning 605,588
Fund balance-ending $ 742,046
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
State Law Enforcement Services
For the Year Ended June 30, 2025
110
151
Lighting and Landscaping
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Assessments $ 997,000 $ 997,000 $ 991,288 $ (5,712)
Use of money and property 3,500 3,500 32,292 28,792
Miscellaneous - 32,000 31,441 (559)
Total revenues 1,000,500 1,032,500 1,055,021 22,521
EXPENDITURES
Current:
Public works 3,957,700 4,538,300 3,972,828 565,472
Total expenditures 3,957,700 4,538,300 3,972,828 565,472
Excess (deficiency) of revenues
over (under) expenditures (2,957,200) (3,505,800) (2,917,807) 587,993
OTHER FINANCING SOURCES (USES)
Transfers in 3,000,000 3,000,000 2,500,000 500,000
Total other financing sources (uses)3,000,000 3,000,000 2,500,000 500,000
Net change in fund balances $ 42,800 $ (505,800) (417,807) $ 87,993
Fund balance-beginning 895,158
Fund balance-ending $ 477,351
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Lighting and Landscaping
For the Year Ended June 30, 2025
111
152
Quimby
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
OTHER FINANCING SOURCES (USES)
Transfers out - (262,685)- 262,685
Total other financing sources (uses)- (262,685)- 262,685
Net change in fund balances $ - $ (262,685) - $ 262,685
Fund balance-beginning (735,460)
Fund balance-ending $ (735,460)
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Quimby
For the Year Ended June 30, 2025
112
153
La Quinta Public Safety Officer
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 1,000 $ 1,000 $ 3,175 $ 2,175
Total revenues 1,000 1,000 3,175 2,175
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 $ 3,000 $ 3,000 5,175 $ 2,175
Fund balance-beginning 57,800
Fund balance-ending $ 62,975
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
La Quinta Public Safety Officer
For the Year Ended June 30, 2025
113
154
Art in Public Places
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 8,000 $ 8,000 $ 51,323 $ 43,323
Developer fees 100,000 100,000 101,384 1,384
Total revenues 108,000 108,000 152,707 44,707
EXPENDITURES
Current:
Community services 83,000 83,000 77,979 5,021
Capital outlay 150,000 150,000 43,899 106,101
Total expenditures 233,000 233,000 121,878 111,122
Excess (deficiency) of revenues
over (under) expenditures (125,000) (125,000) 30,829 155,829
OTHER FINANCING SOURCES (USES)
Transfers in 50,000 50,000 50,000 -
Transfers out - (508,799) (52,547) 456,252
Total other financing sources (uses)50,000 (458,799) (2,547) 456,252
Net change in fund balances $ (75,000) $ (583,799) 28,282 $ 612,081
Fund balance-beginning 974,838
Fund balance-ending $ 1,003,120
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Art in Public Places
For the Year Ended June 30, 2025
114
155
South Coast Air Quality
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 52,500 $ 52,500 $ 51,145 $ (1,355)
Use of money and property 2,000 2,000 7,572 5,572
Total revenues 54,500 54,500 58,717 4,217
EXPENDITURES
Current:
Planning and development 40,000 40,000 42,562 (2,562)
Total expenditures 40,000 40,000 42,562 (2,562)
Net change in fund balances $ 14,500 $ 14,500 16,155 $ 1,655
Fund balance-beginning 126,188
Fund balance-ending $ 142,343
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
South Coast Air Quality
For the Year Ended June 30, 2025
115
156
AB 939
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Taxes $ 70,000 $ 70,000 $ 81,514 $ 11,514
Use of money and property 10,000 10,000 36,127 26,127
Total revenues 80,000 80,000 117,641 37,641
EXPENDITURES
Current:
Planning and development 200,000 200,000 99,798 100,202
Total expenditures 200,000 200,000 99,798 100,202
Net change in fund balances $ (120,000) $ (120,000) 17,843 $ 137,843
Fund balance-beginning 682,950
Fund balance-ending $ 700,793
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
AB 939
For the Year Ended June 30, 2025
116
157
Law Enforcement
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 17,500 $ 17,500 $ 11,343 $ (6,157)
Use of money and property 6,000 6,000 10,320 4,320
Total revenues 23,500 23,500 21,663 (1,837)
EXPENDITURES
Current:
Public safety 17,000 17,000 19,398 (2,398)
Total expenditures 17,000 17,000 19,398 (2,398)
Excess (deficiency) of revenues
over (under) expenditures 6,500 6,500 2,265 (4,235)
OTHER FINANCING SOURCES (USES)
Transfers out - (20,376)- 20,376
Total other financing sources (uses)- (20,376)- 20,376
Net change in fund balances $ 6,500 $ (13,876) 2,265 $ 16,141
Fund balance-beginning 182,470
Fund balance-ending $ 184,735
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Law Enforcement
For the Year Ended June 30, 2025
117
158
Measure A
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes $ 1,995,000 $ 1,995,000 $ 1,909,694 $ (85,306)
Use of money and property 30,000 100,000 212,260 112,260
Total revenues 2,025,000 2,095,000 2,121,954 26,954
OTHER FINANCING SOURCES (USES)
Transfers out (2,335,000) (4,456,987) (430,043) 4,026,944
Total other financing sources (uses) (2,335,000) (4,456,987) (430,043) 4,026,944
Net change in fund balances $ (310,000) $ (2,361,987) 1,691,911 $ 4,053,898
Fund balance-beginning 3,467,049
Fund balance-ending $ 5,158,960
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Measure A
For the Year Ended June 30, 2025
118
159
Economic Development
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 40,000 $ 100,000 $ 213,691 $ 113,691
Total revenues 40,000 100,000 213,691 113,691
EXPENDITURES
Current:
Community services 20,000 20,000 11,353 8,647
Planning and development 11,500 11,500 4,661 6,839
Total expenditures 31,500 31,500 16,014 15,486
Net change in fund balances $ 8,500 $ 68,500 197,677 $ 129,177
Fund balance-beginning 3,485,930
Fund balance-ending $ 3,683,607
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Economic Development
For the Year Ended June 30, 2025
119
160
AB 1379
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 20,000 $ 20,000 $ 16,994 $ (3,006)
Use of money and property 1,000 1,000 6,060 5,060
Total revenues 21,000 21,000 23,054 2,054
EXPENDITURES
Current:
Planning and development 5,500 5,500 1,697 3,803
Total expenditures 5,500 5,500 1,697 3,803
Net change in fund balances $ 15,500 $ 15,500 21,357 $ 5,857
Fund balance-beginning 103,160
Fund balance-ending $ 124,517
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
AB 1379
For the Year Ended June 30, 2025
120
161
BUDGETARY COMPARISON SCHEDULES – CAPITAL PROJECT FUNDS
121
162
Capital Improvements
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 4,000,000 $ 32,674,014 $ 7,205,731 $ (25,468,283)
Total revenues 4,000,000 32,674,014 7,205,731 (25,468,283)
EXPENDITURES
Current:
Public works - - 955,905 (955,905)
Capital outlay 27,218,109 81,672,394 17,731,703 63,940,691
Total expenditures 27,218,109 81,672,394 18,687,608 62,984,786
Excess (deficiency) of revenues
over (under) expenditures (23,218,109) (48,998,380) (11,481,877) 37,516,503
OTHER FINANCING SOURCES (USES)
Transfers in 23,218,109 50,974,855 6,807,200 (44,167,655)
Total other financing sources (uses)23,218,109 50,974,855 6,807,200 (44,167,655)
Net change in fund balances $ - $ 1,976,475 (4,674,677) $ (6,651,152)
Fund balance-beginning (2,184,447)
Fund balance-ending $ (6,859,124)
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Capital Improvements
For the Year Ended June 30, 2025
122
163
Maintenance Facilities DIF
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 2,000 $ 2,000 $ 15,735 $ 13,735
Developer fees 45,000 45,000 28,897 (16,103)
Total revenues 47,000 47,000 44,632 (2,368)
OTHER FINANCING SOURCES (USES)
Transfers out (100,000) (280,000) (280,000) -
Total other financing sources (uses)(100,000) (280,000) (280,000) -
Net change in fund balances $ (53,000) $ (233,000) (235,368) $ (2,368)
Fund balance-beginning 362,527
Fund balance-ending $ 127,159
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Maintenance Facilities DIF
For the Year Ended June 30, 2025
123
164
Infrastructure
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 1,000 $ 1,000 $ 1,092 $ 92
Total revenues 1,000 1,000 1,092 92
Net change in fund balances $ 1,000 $ 1,000 1,092 $ 92
Fund balance-beginning 20,194
Fund balance-ending $ 21,286
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Infrastructure
For the Year Ended June 30, 2025
124
165
Civic Center
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 3,000 $ 3,000 $ 103,344 $ 100,344
Developer fees 100,000 25,000 82,727 57,727
Total revenues 103,000 28,000 186,071 158,071
OTHER FINANCING SOURCES (USES)
Transfers out - (249,925)- 249,925
Total other financing sources (uses)- (249,925)- 249,925
Net change in fund balances $ 103,000 $ (221,925) 186,071 $ 407,996
Fund balance-beginning 1,865,610
Fund balance-ending $ 2,051,681
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Civic Center
For the Year Ended June 30, 2025
125
166
Transportation
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 40,000 $ 40,000 $ 312,600 $ 272,600
Developer fees 100,000 (300,000) 21,135 321,135
Total revenues 140,000 (260,000) 333,735 593,735
OTHER FINANCING SOURCES (USES)
Transfers out (1,179,109) (2,437,568) (38,968) 2,398,600
Total other financing sources (uses)(1,179,109) (2,437,568) (38,968) 2,398,600
Net change in fund balances $ (1,039,109) $ (2,697,568) 294,767 $ 2,992,335
Fund balance-beginning 5,868,008
Fund balance-ending $ 6,162,775
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Transportation
For the Year Ended June 30, 2025
126
167
Parks and Recreation
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 3,000 $ 3,000 $ 89,096 $ 86,096
Developer fees 250,000 145,000 120,043 (24,957)
Total revenues 253,000 148,000 209,139 61,139
OTHER FINANCING SOURCES (USES)
Transfers out - (843,616) (194,665) 648,951
Total other financing sources (uses)- (843,616) (194,665) 648,951
Net change in fund balances $ 253,000 $ (695,616) 14,474 $ 710,090
Fund balance-beginning 1,670,697
Fund balance-ending $ 1,685,171
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Parks and Recreation
For the Year Ended June 30, 2025
127
168
Library Development
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Developer fees $ 50,000 $ 50,000 $ 22,629 $ (27,371)
Total revenues 50,000 50,000 22,629 (27,371)
EXPENDITURES
Debt service:
Interest and fiscal charges 15,000 15,000 23,423 (8,423)
Total expenditures 15,000 15,000 23,423 (8,423)
Net change in fund balance $ 35,000 $ 35,000 (794) $ (35,794)
Fund balance-beginning (1,118,627)
Fund balance-ending $ (1,119,421)
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Library Development
For the Year Ended June 30, 2025
128
169
Community Center
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 5,000 $ 5,000 $ 56,170 $ 51,170
Developer fees 100,000 100,000 54,493 (45,507)
Total revenues 105,000 105,000 110,663 5,663
OTHER FINANCING SOURCES (USES)
Transfers out (500,000) (625,000) (314,647) 310,353
Total other financing sources (uses)(500,000) (625,000) (314,647) 310,353
Net change in fund balances $ (395,000) $ (520,000) (203,984) $ 316,016
Fund balance-beginning 1,107,561
Fund balance-ending $ 903,577
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Community Center
For the Year Ended June 30, 2025
129
170
Street Facility
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 1,000 $ 1,000 $ 4,551 $ 3,551
Total revenues 1,000 1,000 4,551 3,551
Net change in fund balances $ 1,000 $ 1,000 4,551 $ 3,551
Fund balance-beginning 84,231
Fund balance-ending $ 88,782
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Street Facility
For the Year Ended June 30, 2025
130
171
Park Facility
Original Final
Actual
Amounts
Variance
with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 100 $ 100 $ 429 $ 329
Total revenues 100 100 429 329
Net change in fund balances $ 100 $ 100 429 $ 329
Fund balance-beginning 7,934
Fund balance-ending $ 8,363
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Park Facility
For the Year Ended June 30, 2025
131
172
Fire Facility
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 3,000 $ 3,000 $ 35,301 $ 32,301
Developer fees 50,000 50,000 24,682 (25,318)
Total revenues 53,000 53,000 59,983 6,983
Net change in fund balances $ 53,000 $ 53,000 59,983 $ 6,983
Fund balance-beginning 639,289
Fund balance-ending $ 699,272
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Fire Facility
For the Year Ended June 30, 2025
132
173
BUDGETARY COMPARISON SCHEDULES – DEBT SERVICE FUNDS
133
174
Financing Authority
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Use of money and property $ 1,500 $ 1,500 $ 750 $ (750)
Total revenues 1,500 1,500 750 (750)
EXPENDITURES
Current:
General government 1,500 1,500 750 750
Total expenditures 1,500 1,500 750 750
Net change in fund balances $ - $- - $ -
Fund balance-beginning -
Fund balance-ending $ -
CITY OF LA QUINTA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Financing Authority
For the Year Ended June 30, 2025
134
175
Internal Service Funds
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.
CITY OF LA QUINTA, CALIFORNIA
Internal Service Funds
For the Year Ended June 30, 2025
135
176
Combining Statement of Net Position
Equipment
Replacement
Information
Technology
Park
Equipment
and Facilities Insurance
Total Internal
Service
Funds
ASSETS
Current assets:
Cash and investments $ 5,513,434 $ 5,316,568 $ 4,126,054 $ 1,252,805 $ 16,208,861
Receivables:
Accrued interest 4,885 4,710 3,656 1,110 14,361
Prepaid costs - 124,847 - - 124,847
Total current assets 5,518,319 5,446,125 4,129,710 1,253,915 16,348,069
Noncurrent:
Capital assets, net 1,793,154 1,679,766 11,911,109 - 15,384,029
Total noncurrent assets 1,793,154 1,679,766 11,911,109 - 15,384,029
Total assets 7,311,473 7,125,891 16,040,819 1,253,915 31,732,098
LIABILITIES
Current liabilities:
Accounts payable 46,967 383,730 4,191 2,918 437,806
Accrued liabilities -2,469 - - 2,469
Accrued interest 34 5,177 - - 5,211
Subscriptions - 317,070 - - 317,070
Total current liabilities 47,001 708,446 4,191 2,918 762,556
Noncurrent liabilities:
Leases 11,271 - - - 11,271
Subscriptions - 739,751 - - 739,751
Total noncurrent liabilities 11,271 739,751 - - 751,022
Total liabilities 58,272 1,448,197 4,191 2,918 1,513,578
NET POSITION
Net investment in capital assets 1,781,883 622,945 11,911,109 - 14,315,937
Unrestricted 5,471,318 5,054,749 4,125,519 1,250,997 15,902,583
Total net position $ 7,253,201 $ 5,677,694 $ 16,036,628 $ 1,250,997 $ 30,218,520
CITY OF LA QUINTA, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
136
177
Statement of Revenues, Expenses and Changes in Net Position
Equipment
Replacement
Information
Technology
Park
Equipment
and Facilities Insurance
Total Internal
Service
Funds
OPERATING REVENUES
Sales and service charges $ 1,608,567 $ 3,259,049 $ 2,050,000 $ 1,369,842 $ 8,287,458
Total operating revenues 1,608,567 3,259,049 2,050,000 1,369,842 8,287,458
OPERATING EXPENSES
Administration and general - 54,066 - 240,665 294,731
Contract services - 994,595 395,422 810,168 2,200,185
Software and supplies - 564,527 - - 564,527
Fuel and oil 108,076 - - - 108,076
Repairs and maintenance 901,380 - - - 901,380
Depreciation and amortization 593,398 542,268 650,286 - 1,785,952
Total operating expenses 1,602,854 2,155,456 1,045,708 1,050,833 5,854,851
Operating income (loss)5,713 1,103,593 1,004,292 319,009 2,432,607
NONOPERATING REVENUES
(EXPENSES)
Interest revenue 282,331 235,744 180,327 44,399 742,801
Interest expense (1,053) (40,471) - - (41,524)
Gain (loss) on disposal of capital
assets 30,000 90,410 (22,889) - 97,521
Total nonoperating revenues
(expenses)311,278 285,683 157,438 44,399 798,798
Change in net position 316,991 1,389,276 1,161,730 363,408 3,231,405
Net position-beginning 6,936,210 4,288,418 14,874,898 887,589 26,987,115
Net position-ending $ 7,253,201 $ 5,677,694 $ 16,036,628 $ 1,250,997 $ 30,218,520
CITY OF LA QUINTA, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2025
137
178
Combining Statement of Cash Flows
Equipment
Replacement
Information
Technology
Park
Equipment
and Facilities Insurance Totals
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from interfund charges $ 1,608,567 $ 3,259,049 $ 2,050,000 $ 1,369,842 $ 8,287,458
Payments to suppliers and service
providers (992,431) (1,422,648) (1,462,284) (1,047,915) (4,925,278)
Net cash provided by (used for)
operating activities 616,136 1,836,401 587,716 321,927 3,362,180
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of
capital assets (727,373) (340,583) (565,681) - (1,633,637)
Principal paid on capital debt (38,288) (249,553) - - (287,841)
Interest paid on capital debt (1,161) (121,027) - - (122,188)
Proceeds from sales of assets 30,000 - 78,227 - 108,227
Net cash provided by (used for)
capital and related financing
activities (736,822) (711,163) (487,454) - (1,935,439)
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments 283,826 235,749 181,256 44,347 745,178
Net cash provided by (used for)
investing activities 283,826 235,749 181,256 44,347 745,178
Net increase (decrease) in
cash and cash equivalents 163,140 1,360,987 281,518 366,274 2,171,919
Cash and cash equivalents-beginning 5,350,294 3,955,581 3,844,536 886,531 14,036,942
Cash and cash equivalents-ending $ 5,513,434 $ 5,316,568 $ 4,126,054 $ 1,252,805 $ 16,208,861
CITY OF LA QUINTA, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
138
179
Equipment
Replacement
Information
Technology
Park
Equipment
and Facilities Insurance Totals
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)$ 5,713 $ 1,103,593 $ 1,004,292 $ 319,009 $ 2,432,607
Adjustments to reconcile operating
income (loss) to net cash provided
by (used for) operating activities:
Depreciation/amortization expense 593,398 542,268 650,286 - 1,785,952
(Increase) decrease in prepaid
items - (4,048)- - (4,048)
Increase (decrease) in accounts
payable 17,025 194,176 (1,066,862) 2,918 (852,743)
Increase (decrease) in accrued
liabilities -412 - - 412
Total adjustments 610,423 732,808 (416,576) 2,918 929,573
Net cash provided by (used for)
operating activities $ 616,136 $ 1,836,401 $ 587,716 $ 321,927 $ 3,362,180
CITY OF LA QUINTA, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
139
180
STATISTICAL SECTION
140
181
CITY OF LA QUINTA
DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2025
This part of the City’s annual comprehensive financial report presents detailed information as a context for
understanding what the information in the financial statements, the note disclosures, and required supplementary
information says about the government’s overall financial health.
Contents:Pages:
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 . . . . . . . . . . . . . .142
Revenue Capacity: these schedules contain information to help the reader assess the City’s
most significant local revenue source, the property tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157
Debt Capacity: these schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the City’s ability to issue
additional debt in the future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176
Operating Information: these schedules contain service and infrastructure data to help the
reader understand how the information in the City’s financial report relates to the services the
City provides and the activities it performs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180
Sources: Unless otherwise noted, the information in these schedules are derived from the
annual comprehensive financial reports for the relevant year.
141
182
FINANCIAL TRENDS
142
183
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
Net Position by Component
Fiscal Year
2016 2017 2018 2019 2020
Governmental Activities
Net investment in capital assets $ 516,499,682 $ 517,039,487 $ 510,913,594 $ 519,221,969 $ 509,777,422
Restricted 61,148,731 38,824,860 39,204,789 44,815,499 46,001,248
Unrestricted 84,439,071 118,125,125 130,950,644 138,584,041 142,418,499
Total Governmental Activities Net Position 662,087,484 673,989,472 681,069,027 702,621,509 698,197,169
Business-Type Activities
Net investment in capital assets 43,898,784 43,836,868 43,585,880 43,375,536 39,712,955
Unrestricted (5,086,906) (5,140,966) (5,203,212) 240,125 3,145,820
Total Business-Type Activities Net Position 38,811,878 38,695,902 38,382,668 43,615,661 42,858,775
Primary Government
Net investment in capital assets 560,398,466 560,876,355 554,499,474 562,597,505 549,490,377
Restricted 61,148,731 38,824,860 39,204,789 44,815,499 46,001,248
Unrestricted 79,352,165 112,984,159 125,747,432 138,824,166 145,564,319
Total Primary Government Net Position $ 700,899,362 $ 712,685,374 $ 719,451,695 $ 746,237,170 $ 741,055,944
CITY OF LA QUINTA
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184
Table 1
Fiscal Year
2021 2022 2023 2024 2025
Governmental Activities:
$ 519,203,177 $ 517,697,036 $ 532,628,308 $ 549,197,719 $ 551,740,125 Net investment in capital assets
46,711,801 54,412,355 61,906,132 70,215,219 106,639,960 Restricted
162,887,430 190,618,323 220,654,047 241,361,988 249,261,146 Unrestricted
728,802,408 762,727,717 815,188,487 860,774,926 907,641,231 Total Governmental Activities Net Position
Business-Type Activities:
42,717,914 42,491,762 42,242,526 42,863,554 42,491,250 Net investment in capital assets
368,750 1,036,834 1,166,307 1,365,595 417,815 Unrestricted
43,086,664 43,528,596 43,408,833 44,229,149 42,909,065 Total Business-Type Activities Net Position
Primary Government:
561,921,091 560,188,798 574,870,834 592,061,273 594,231,375 Net investment in capital assets
46,711,801 53,601,581 61,906,132 70,215,219 106,639,960 Restricted
163,256,180 192,465,934 221,820,354 242,727,583 249,678,961 Unrestricted
$ 771,889,072 $ 806,256,313 $ 858,597,320 $ 905,004,075 $ 950,550,296 Total Primary Government Net Position
144
185
Changes in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
Changes in Net Position
Fiscal Year
2016 2017 2018 2019 2020
Expenses
Governmental activities:
General government $ 5,645,004 $ 5,565,727 $ 8,869,174 $ 9,085,863 $ 9,877,251
Public safety 22,067,603 23,378,824 22,508,088 23,164,976 24,009,725
Planning and development 3,359,732 2,882,321 4,352,134 5,913,321 5,845,836
Community services 6,214,098 6,584,268 9,231,268 6,202,084 11,362,950
Public works 12,157,245 10,927,160 15,580,975 4,430,519 32,248,031
Contribution to other agencies — — — — —
Interest on long-term debt 343,129 309,463 1,468,971 210,941 98,049
Total governmental activities expenditures 49,786,811 49,647,763 62,010,610 49,007,703 83,441,842
Business-type activities:
Golf course 4,373,586 3,965,644 4,318,463 4,558,922 4,148,190
Total business-type activities expenditures 4,373,586 3,965,644 4,318,463 4,558,922 4,148,190
Total Primary Government Expenditures 54,160,397 53,613,407 66,329,073 53,566,625 87,590,032
Program Revenues
Governmental activities:
Charges for services:
General government 192,538 504,127 883,153 516,115 615,348
Public safety 1,378,704 341,368 367,848 376,249 367,277
Planning and development 467,053 564,327 724,499 636,683 799,040
Community services 386,824 453,098 442,656 479,542 366,896
Public works 1,134,630 741,703 1,054,902 1,119,816 1,436,362
Operating grants and contributions 12,213,338 6,187,803 4,259,916 5,623,509 7,817,482
Capital grants and contributions 1,076,145 3,316,153 4,455,060 5,462,395 9,613,752
Total governmental activities program revenues 16,849,232 12,108,579 12,188,034 14,214,310 21,016,157
Business-type activities:
Charges for services:
Golf course 3,621,495 3,446,340 3,567,718 3,773,396 2,746,748
Capital grants and contributions — — — — —
Total business-type activities program revenues 3,621,495 3,446,340 3,567,718 3,773,396 2,746,748
Total Primary Government Program Revenues 20,470,727 15,554,919 15,755,752 17,987,706 23,762,905
Net Revenues (Expenditures):
Governmental activities (32,937,579) (37,539,184) (49,822,576) (34,793,394) (62,425,685)
Business-type activities (752,091) (519,304) (750,745) (785,526) (1,401,442)
Total Net Revenues (Expenditures)$ (33,689,670) $ (38,058,488) $ (50,573,321) $ (35,578,920) $ (63,827,127)
CITY OF LA QUINTA
145
186
TABLE 2
Changes in Net Position
Fiscal Year
2021 2022 2023 2024 2025
Expenditures:
Governmental activities:
$ 8,106,209 $ 9,733,224 $ 17,213,248 $ 10,727,413 $ 10,728,288 General government
24,429,310 25,741,782 25,457,350 29,156,519 24,672,278 Public safety
6,508,522 4,716,745 3,146,264 8,432,348 8,123,885 Planning and development
6,958,234 8,439,863 9,550,001 13,647,971 14,853,039 Community services
11,438,197 14,985,480 14,043,797 10,982,293 20,770,395 Public works
— — — — — Contribution to other agencies
42,081 11,914 25,504 48,204 64,947 Interest on long-term debt
57,482,553 63,629,008 69,436,164 72,994,748 79,212,832 Total governmental activities expenditures
Business-type activities:
4,169,286 4,746,281 5,520,342 5,643,061 6,885,345 Golf course
4,169,286 4,746,281 5,520,342 5,643,061 6,885,345 Total business-type activities expenditures
61,651,839 68,375,289 74,956,506 78,637,809 86,098,177 Total Primary Government Expenditures
Program Revenues:
Governmental activities:
Charges for services:
1,541,535 1,402,810 1,716,965 3,861,857 4,498,560 General government
770,760 648,914 555,423 988,238 661,788 Public safety
710,529 1,315,760 1,356,426 — — Planning and development
178,554 137,769 185,979 — — Community services
1,503,633 3,378,132 2,736,907 71,595 81,514 Public works
4,413,523 5,786,773 7,136,358 7,265,464 12,582,753 Operating grants and contributions
15,770,048 11,952,031 8,760,788 14,078,555 10,389,593 Capital grants and contributions
24,888,582 24,622,189 22,448,846 26,265,709 28,214,208 Total governmental activities program revenues
Business-type activities:
Charges for services:
3,509,096 4,679,163 4,767,458 4,965,124 4,228,963 Golf course
— — — — — Capital grants and contributions
3,509,096 4,679,163 4,767,458 4,965,124 4,228,963 Total business-type activities program revenues
28,397,678 29,301,352 27,216,304 31,230,833 32,443,171 Total Primary Government Program Revenues
Net Revenues (Expenditures):
(32,593,971) (39,006,040) (46,987,318) (46,729,039) (50,998,624) Governmental activities
(660,190) (67,118) (752,884) (677,937) (2,656,382) Business-type activities
$ (33,254,161) $ (39,073,158) $ (47,740,202) $ (47,406,976) $ (53,655,006) Total Net Revenues (Expenditures)
146
187
Changes in Net Position - Governmental ActivitiesChanges in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
Fiscal Year
2016 2017 2018 2019 2020
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
Property taxes $ 8,798,296 $ 15,521,335 $ 15,887,015 $ 16,423,843 $ 16,710,544
Transient occupancy taxes 7,835,745 9,433,970 10,752,788 11,230,915 8,079,394
Sales tax 9,107,046 10,060,305 18,956,985 20,905,243 19,136,015
Franchise taxes 1,799,938 1,815,491 1,977,179 2,032,848 1,996,593
Business license taxes 334,465 365,451 345,187 418,707 378,744
Other taxes 516,964 585,333 718,472 713,237 662,545
Motor vehicle in lieu, unrestricted 3,651,549 3,813,213 3,941,348 4,086,536 4,290,417
Investment income 2,390,468 442,710 803,654 5,150,613 5,110,358
Net Increase (Decrease) of Investment Fair Value
Gain (loss) on sale of capital assets — — — — —
Miscellaneous 376,193 460,614 649,566 394,347 1,404,143
Special Item (interfund loan payoff)— — — (5,553,561) —
Extraordinary gain/loss on dissolution of RDA — 7,344,050 3,624,121 993,148 867,792
Transfers (115,400) (401,300) (434,000) (450,000) (635,200)
Total governmental activities 34,695,264 49,441,172 57,222,315 56,345,876 58,001,345
Business-type activities:
Investment income 4,282 2,028 3,511 14,958 9,356
Net Increase (Decrease) of Investment Fair Value
Gain (loss) on sale of capital assets — — — — —
Net Increase (Decrease) of Investment Fair Value
Miscellaneous 218,823 — — 5,553,561 —
Transfers 115,400 401,300 434,000 450,000 635,200
Total business-type activities 338,505 403,328 437,511 6,018,519 644,556
Total Primary Government 35,033,769 49,844,500 57,659,826 62,364,395 58,645,901
Changes in Net Position
Governmental activities 1,757,685 11,901,988 7,399,739 21,552,482 (4,424,340)
Business-type activities (413,586) (115,976) (313,234) 5,232,993 (756,886)
Total Primary Government $ 1,344,099 $ 11,786,012 $ 7,086,505 $ 26,785,475 $ (5,181,226)
CITY OF LA QUINTA
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188
TABLE 3
Fiscal Year
2021 2022 2023 2024 2025
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
16,893,629 $ 17,823,858 $ 20,697,081 $ 24,646,620 $ 26,750,585 Property taxes
11,847,139 18,365,424 19,262,569 15,682,835 15,612,280 Transient occupancy taxes
23,323,549 28,204,906 28,888,079 29,601,430 29,784,142 Sales tax
2,055,505 2,240,468 2,375,729 2,419,887 2,330,640 Franchise taxes
383,551 446,745 489,738 395,593 442,644 Business license taxes
1,568,997 1,352,585 926,743 1,102,546 1,013,025 Other taxes
4,376,455 4,663,327 5,110,569 5,584,194 6,046,467 Motor vehicle in lieu, unrestricted
1,427,664 219,164 5,058,717 12,708,191 15,975,454 Investment income
(5,727,183) (1,519,171) — — Net Increase (Decrease) of Investment Fair Value
— — — — — Gain (loss) on sale of capital assets
1,457,788 943,160 1,432,619 1,640,182 1,489,582 Miscellaneous
— — — — — Special Item (interfund loan payoff)
739,933 609,515 — — — Extraordinary gain/loss on dissolution of RDA
(875,000) (550,000) (600,000) (1,466,000) (1,300,000) Transfers
63,199,210 68,591,969 82,122,673 92,315,478 98,144,819 Total governmental activities
Business-type activities:
13,081 4,329 12,456 32,253 36,298 Investment income
(45,279) 20,665 — — Net Increase (Decrease) of Investment Fair Value
— — — — — Gain (loss) on sale of capital assets
(45,279) Net Increase (Decrease) of Investment Fair Value
— — — — — Miscellaneous
875,000 550,000 600,000 1,466,000 1,300,000 Transfers
888,081 509,050 633,121 1,498,253 1,336,298 Total business-type activities
64,087,291 69,101,019 82,755,794 93,813,731 99,481,117 Total Primary Government
Changes in Net Position
30,605,239 29,585,150 35,135,355 45,586,439 47,146,195 Governmental activities
227,891 441,932 (119,763) 820,316 (1,320,084) Business-type activities
$ 30,833,130 $ 30,027,082 $ 35,015,592 $ 46,406,755 $ 45,826,111 Total Primary Government
148
189
Changes in Net Position - Governmental Activities
Last Ten Fiscal Years
(Accrual basis of accounting)
Fiscal Year
2016 2017 2018 2019 2020
Expenses
General government $ 5,645,004 $ 5,565,727 $ 8,869,174 $ 9,085,863 $ 9,877,251
Public safety 22,067,603 23,378,824 22,508,088 23,164,976 24,009,725
Planning and development 3,359,732 2,882,321 4,352,134 5,913,321 5,845,836
Community services 6,214,098 6,584,268 9,231,268 6,202,084 11,362,950
Public works 12,157,245 10,927,160 15,580,975 4,430,519 32,248,031
Contribution to other agencies — — — — —
Interest on long-term debt 343,129 309,463 1,468,971 210,941 98,049
Total Governmental Activities Expenditures 49,786,811 49,647,763 62,010,610 49,007,703 83,441,842
Program Revenues
Charges for services:
General government 192,538 504,127 883,153 516,115 615,348
Public safety 1,378,704 341,368 367,848 376,249 367,277
Planning and development 467,053 564,327 724,499 636,683 799,040
Community services 386,824 453,098 442,656 479,542 366,896
Public works 1,134,630 741,703 1,054,902 1,119,816 1,436,362
Operating grants and contributions 12,213,338 6,187,803 4,259,916 5,623,509 7,817,482
Capital grants and contributions 1,076,145 3,316,153 4,455,060 5,462,395 9,613,752
Total Governmental Activities Program Revenues 16,849,232 12,108,579 12,188,034 14,214,310 21,016,157
Net Revenues (Expenditures)(32,937,579) (37,539,184) (49,822,576) (34,793,394) (62,425,685)
General Revenues and Other Changes in Net Position
Taxes:
Property taxes 8,798,296 15,521,335 15,887,015 16,423,843 16,710,544
Transient occupancy taxes 7,835,745 9,433,970 10,752,788 11,230,915 8,079,394
Sales tax 9,107,046 10,060,305 18,956,985 20,905,243 19,136,015
Franchise tax 1,799,938 1,815,491 1,977,179 2,032,848 1,996,593
Business license taxes 334,465 365,451 345,187 418,707 378,744
Other tax 516,964 585,333 718,472 713,237 662,545
Motor vehicle in lieu, unrestricted 3,651,549 3,813,213 3,941,348 4,086,536 4,290,417
Investment income 2,390,468 442,710 803,654 5,150,613 5,110,358
Net Increase (Decrease) of Investment Fair Value
Gain (loss) on sale of capital assets 376,193 460,614 649,566 394,347 1,404,143
Miscellaneous — — — — —
Special item (interfund loan payoff)(5,553,561) —
Extraordinary gain/loss on dissolution of RDA — 7,344,050 3,624,121 993,148 867,792
Transfers (115,400) (401,300) (434,000) (450,000) (635,200)
Total Governmental Activities 34,695,264 49,441,172 57,222,315 56,345,876 58,001,345
Changes in Net Position $ 1,757,685 $ 11,901,988 $ 7,399,739 $ 21,552,482 $ (4,424,340)
CITY OF LA QUINTA
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190
TABLE 3
Changes in Net Position - Business-Type Activities
Fiscal Year
2021 2022 2023 2024 2025
Expenditures:
$ 8,106,209 $ 9,732,445 $ 17,213,248 $ 10,727,413 $ 10,728,288 General government
24,429,310 25,741,782 25,457,350 29,156,519 24,672,278 Public safety
6,508,522 4,716,745 3,146,264 8,432,348 8,123,885 Planning and development
6,958,234 8,439,863 9,550,001 13,647,971 14,853,039 Community services
11,438,197 14,985,480 14,043,797 10,982,293 20,770,395 Public works
— — — — — Contribution to other agencies
42,081 11,914 25,504 48,204 64,947 Interest on long-term debt
57,482,553 63,628,229 69,436,164 72,994,748 79,212,832 Total Governmental Activities Expenditures
Program Revenues:
Charges for services:
1,541,535 1,402,810 1,716,965 3,861,857 4,498,560 General government
770,760 648,914 555,423 988,238 661,788 Public safety
710,529 1,315,760 1,356,426 — — Planning and development
178,554 137,769 185,979 — — Community services
1,503,633 3,378,132 2,736,907 71,595 81,514 Public works
4,413,523 5,786,773 7,136,358 7,265,464 12,582,753 Operating grants and contributions
15,770,048 11,952,031 8,760,788 14,078,555 10,389,593 Capital grants and contributions
24,888,582 24,622,189 22,448,846 26,265,709 28,214,208
Total Governmental Activities Program
Revenues
(32,593,971) (39,006,040) (46,987,318) (46,729,039) (50,998,624) Net Revenues (Expenditures)
General Revenues and Other Changes in
Net Position:
Taxes:
16,893,629 17,823,858 20,697,081 24,646,620 26,750,585 Property taxes
11,847,139 18,365,424 19,262,569 15,682,835 15,612,280 Transient occupancy taxes
23,323,549 28,204,906 28,888,079 29,601,430 29,784,142 Sales tax
2,055,505 2,240,468 2,375,729 2,419,887 2,330,640 Franchise tax
383,551 446,745 489,738 395,593 442,644 Business license taxes
1,568,997 1,352,585 926,743 1,102,546 1,013,025 Other tax
4,376,455 4,663,327 5,110,569 5,584,194 6,046,467 Motor vehicle in lieu, unrestricted
1,427,664 219,164 5,058,717 12,708,191 15,975,454 Investment income
(5,727,183) (1,519,171) — — Net Increase (Decrease) of Investment Fair Value
1,457,788 942,381 — — — Gain (loss) on sale of capital assets
— — 1,432,619 1,640,182 1,489,582 Miscellaneous
— — — — — Special item (interfund loan payoff)
739,933 609,515 — — — Extraordinary gain/loss on dissolution of RDA
(875,000) (550,000) (600,000) (1,466,000) (1,300,000) Transfers
63,199,210 68,591,190 82,122,673 92,315,478 98,144,819 Total Governmental Activities
$ 30,605,239 $ 29,585,150 $ 35,135,355 $ 45,586,439 $ 47,146,195 Changes in Net Position
150
191
Changes in Net Position - Business-type Activities
Last Ten Fiscal Years
(Accrual basis of accounting)
Changes in Net Position - Business-type Activities
Fiscal Year
2016 2017 2018 2019 2020
Expenses
Golf course $ 4,373,586 $ 3,965,644 $ 4,318,463 $ 4,558,922 $ 4,148,190
Total Business-Type Activities Expenditures 4,373,586 3,965,644 4,318,463 4,558,922 4,148,190
Program revenues
Charges for services:
Golf course 3,621,495 3,446,340 3,567,718 3,773,396 2,746,748
Capital grants and contributions — — — — —
Total Business-Type Activities Program Revenues 3,621,495 3,446,340 3,567,718 3,773,396 2,746,748
Net Revenues (Expenditures)(752,091) (519,304) (750,745) (785,526) (1,401,442)
General Revenues and Other Changes in Net Position
Investment income 4,282 2,028 3,511 14,958 9,356
Net Increase (Decrease) of Investment Fair Value
Gain (loss) on sale of capital assets — — — — —
Miscellaneous 218,823 — — 5,553,561 —
Transfers 115,400 401,300 434,000 450,000 635,200
Capital contributions — — — — —
Total Business-Type Activities 338,505 403,328 437,511 6,018,519 644,556
Changes in Net Position $ (413,586) $ (115,976) $ (313,234) $ 5,232,993 $ (756,886)
CITY OF LA QUINTA
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192
TABLE 4
Changes in Net Position - Business-Type Activities
Fiscal Year
2021 2022 2023 2024 2025
Expenditures:
$ 4,169,286 $ 4,746,281 $ 5,520,342 $ 5,643,061 $ 6,885,345 Golf course
4,169,286 4,746,281 5,520,342 5,643,061 6,885,345 Total Business-Type Activities Expenditures
Program revenues:
Charges for services:
3,509,096 4,679,163 4,767,458 4,965,124 4,228,963 Golf course
— — — — — Capital grants and contributions
3,509,096 4,679,163 4,767,458 4,965,124 4,228,963 Total Business-Type Activities Program Revenues
(660,190) (67,118) (752,884) (677,937) (2,656,382) Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
13,081 4,329 12,456 32,253 36,298 Investment income
(45,279) 20,665 — — Net Increase (Decrease) of Investment Fair Value
— — — — — Gain (loss) on sale of capital assets
— — — — — Miscellaneous
875,000 550,000 600,000 1,466,000 1,300,000 Transfers
— — — — — Capital contributions
888,081 509,050 633,121 1,498,253 1,336,298 Total Business-Type Activities
$ 227,891 $ 441,932 $ (119,763) $ 820,316 $ (1,320,084) Changes in Net Position
152
193
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Fund Balances of Governmental Funds
Fiscal Year
2016 2017 2018 2019 2020
General fund
Nonspendable:
Prepaid costs $ 204,589 $ 10,578 $ 90,657 $ 37,182 $ 14,065
Land held for resale 8,320,000 8,320,000 8,320,000 5,730,990 5,403,652
Advances to other funds 14,974,800 15,022,660 14,954,085 — —
Due from Other Governments 25,105,681 29,154,040 29,611,707 27,915,770 26,069,742
Restricted for:
Debt service — — — — —
Section 115 Trust (Note 11)6,540,000 10,249,738
Committed:
Emergency Reserve(2)15,576,000 16,534,000 — — —
Natural Disaster Reserve(2)7,400,000 10,000,000 10,000,000
Economic Disaster Reserve(2)8,140,000 11,000,000 6,800,000
Post retirement health benefits(3)1,523,400 1,523,400 — — —
Capital Replacement Reserve(2)2,302,000 — 5,000,000 5,000,000 6,540,000
Cash Flow Reserve(2)3,894,000 4,134,000 5,000,000 5,000,000 5,000,000
Pension Trust(4)— — 2,000,000 — —
Carryovers(5)4,274,046 120,000 2,186,500 745,300 1,778,800
Other — — — — —
Assigned:
Continuing appropriations — — — — —
Public Safety (Note 14)— 9,371,699 9,754,327 9,864,841 10,491,654
Sales Tax Reserve (Note 14)— — 5,169,970 7,721,975 8,736,219
Capital Projects (Note 14)— 6,322,570 4,996,815 11,853,162 13,155,144
Carryovers (Note 14)— — — — —
Unassigned 13,822,012 16,949,526 19,199,506 16,228,627 19,094,651
Total general fund 98,565,571 107,462,473 121,823,567 117,637,847 123,333,665
All other governmental funds
Nonspendable:
Prepaid costs 8,422 10,349 — 386 2,875
Notes and loans — — — — —
Advances to other funds — — — — —
Deposits — — — — —
Restricted:
General government
Planning and development projects 18,211,200 22,664,093 22,607,600 22,996,435 23,680,641
Public safety 189,988 83,506 342,919 1,391,721 1,607,101
Community services 9,872,124 10,040,222 10,016,652 13,775,710 14,376,472
Public works 1,250,827 1,546,505 2,033,627 2,667,401 3,208,072
Capital Projects 3,597,221 4,490,534 4,203,991 3,904,492 3,128,962
Debt service — — —
Assigned:
Continuing appropriations — — — — —
Unassigned (11,655,344) (11,423,008) (11,347,062) (1,852,211) (5,175,243)
Total all other governmental funds 21,474,438 27,412,201 27,857,727 42,883,934 40,828,880
Total Governmental Funds $ 120,040,009 $ 134,874,674 $ 149,681,294 $ 160,521,781 $ 164,162,545
CITY OF LA QUINTA
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Table 5
Fund Balances of Governmental Funds
Fiscal Year
2021 2022 2023 2024 2025
General fund:
Nonspendable:
$ 25,246 $ 46,990 $ 125,993 $ 170,577 $ 36,870 Prepaid costs
5,403,652 5,403,652 5,403,652 5,403,652 5,403,652 Land held for resale
— — — — 14,375,798 Advances to other funds
24,070,622 21,915,347 19,600,793 17,123,777 — Due from Other Governments
Restricted for:
— — — — — Debt service
11,381,922 10,137,888 5,317,487 5,666,575 6,172,305 Section 115 Trust (Note 11)
Committed:
— — — — — Emergency Reserve (2)
10,000,000 10,000,000 15,000,000 15,000,000 15,000,000 Natural Disaster Reserve(2)
11,000,000 11,000,000 13,000,000 13,000,000 13,000,000 Economic Disaster Reserve(2)
— — — — — Post retirement health benefits (3)
10,000,000 10,000,000 12,000,000 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)
1,209,870 1,209,100 2,600,009 900,000 — Carryovers (5)
— — — — — Other
Assigned:
— — — — — Continuing appropriations
11,423,931 11,183,821 11,986,970 15,652,616 19,391,133 Public Safety (Note 14)
15,128,658 15,355,043 29,214,191 32,985,374 29,623,592 Sales Tax Reserve (Note 14)
13,431,089 30,761,847 22,623,372 21,666,520 31,778,242 Capital Projects (Note 14)
— — — — 850,000 Carryovers (Note 14)
24,241,553 33,893,325 44,105,041 65,216,616 84,454,583 Unassigned
142,316,543 165,907,013 185,977,508 209,785,707 237,086,175 Total general fund
All other governmental funds:
Nonspendable:
1,019 96,590 468 500 — Prepaid costs
— — — — — Notes and loans
— — — — — Advances to other funds
— — — — — Deposits
Restricted:
841,751 General government
24,751,443 25,118,552 27,585,913 29,154,058 29,187,188 Planning and development projects
931,352 1,073,419 1,278,307 1,287,208 989,756 Public safety
12,813,788 13,159,532 15,711,786 14,634,322 16,774,731 Community services
5,196,324 7,353,021 7,535,519 7,512,849 8,891,020 Public works
3,018,894 6,897,057 9,794,607 11,626,051 11,747,272 Capital Projects
— — — — — Debt service
Assigned:
— — — — — Continuing appropriations
(3,182,262) (2,483,120) (8,064,140) (4,098,801) (8,734,368) Unassigned
43,530,558 51,215,051 53,842,460 60,116,187 59,697,350 Total all other governmental funds
$ 185,847,101 $ 217,122,064 $ 239,819,968 $ 269,901,894 $ 296,783,525 Total Governmental Funds
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195
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Changes in Fund Balances of Governmental Funds
Fiscal Year
2016 2017 2018 2019 2020
Revenues
Taxes $ 28,057,989 $ 41,832,117 $ 44,931,250 $ 48,462,493 $ 44,881,038
Assessments 944,050 953,699 950,541 961,633 957,017
Licenses and permits 1,161,820 1,118,911 1,394,820 1,555,026 1,913,519
Intergovernmental 14,960,676 4,870,334 12,555,259 14,075,980 17,107,595
Charges for services 1,332,541 1,021,336 1,279,864 1,170,825 1,179,592
Use of money and property 7,475,742 4,659,301 2,388,683 4,824,651 5,219,088
Contributions, fines, and forfeitures 28,459 348,345 375,390 375,491 665,193
Developer participation 1,441,075 1,042,568 1,534,628 2,231,471 1,863,587
Miscellaneous 992,282 289,047 1,196,057 2,425,675 1,371,095
Total Revenues 56,394,634 56,135,658 66,606,492 76,083,245 75,157,724
Expenditures
Current:
General government 5,267,024 5,845,197 7,737,111 10,129,408 7,732,495
Public safety 22,125,962 23,377,755 22,508,088 23,164,976 24,009,725
Planning and development 3,294,259 2,549,779 4,310,589 6,415,466 5,436,281
Community services 4,983,038 4,626,401 5,236,083 5,944,200 6,159,707
Public works 4,101,210 4,025,958 4,146,135 4,219,461 5,421,606
Capital projects 7,209,874 6,859,428 9,015,861 9,096,460 23,150,511
Debt service:
Principal retirement 632,615 651,625 666,988 650,000 —
Interest and fiscal charges 346,137 307,600 1,460,371 178,080 28,868
Total Expenditures 47,960,119 48,243,743 55,081,226 59,798,051 71,939,193
Excess (Deficiency) of Revenues Over (Under)
Expenditures 8,434,515 7,891,915 11,525,266 16,285,194 3,218,531
Other financing sources (uses):
Proceeds from sale of land — — — — —
Transfers in 6,420,538 21,503,514 7,432,340 12,942,596 16,467,409
Transfers out (6,614,349) (21,904,814) (7,775,107) (13,826,890) (16,912,971)
Debt Issuance Proceeds(2)— — — —
Capital leases — — — —
Proceeds from sale of capital assets — — — —
Total Other Financing Sources (Uses)(193,811) (401,300) (342,767) (884,294) (445,562)
Extraordinary gain/loss on dissolution of RDA — 7,344,050 3,624,121 993,148 867,792
Special item (interfund loan payoff)— — — (5,553,561) —
Net Change in Fund Balances $ 8,240,704 $ 14,834,665 $ 14,806,620 $ 10,840,487 $ 3,640,761
Debt Service as a Percentage of Noncapital
Expenditures (1)2.4% 2.5% 3.3% 2.0% 0.06%
CITY OF LA QUINTA
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Table 6
Changes in Fund Balances of Governmental Funds
Fiscal Year
2021 2022 2023 2024 2025
Revenues:
$53,493,786 $65,107,160 $67,267,115 $78,926,323 $81,653,872 Taxes
984,435 969,257 981,315 988,238 991,288 Assessments
2,020,596 4,521,449 3,994,989 2,820,613 2,682,352 Licenses and permits
25,720,328 15,989,135 16,353,942 21,243,975 19,650,235 Intergovernmental
964,710 1,623,951 1,558,784 1,494,422 1,413,876 Charges for services
2,601,482 (3,545,192) 4,592,365 12,247,458 15,084,698 Use of money and property
779,606 657,589 563,494 408,125 389,449 Contributions, fines, and forfeitures
1,844,665 5,584,146 4,216,121 879,431 455,990 Developer participation
645,780 970,399 2,602,248 1,499,269 1,433,969 Miscellaneous
89,055,388 91,877,894 102,130,373 120,507,854 123,755,729 Total Revenues
Expenditures
Current:
8,464,230 10,515,771 20,967,405 7,601,346 12,462,862 General government
24,429,310 25,741,782 25,457,350 25,374,535 27,015,657 Public safety
6,544,477 5,234,065 6,503,091 7,590,589 8,550,991 Planning and development
5,583,420 6,325,904 8,063,457 12,785,671 14,395,752 Community services
5,287,280 5,654,080 6,470,613 7,117,820 9,256,259 Public works
18,219,385 7,167,446 14,180,312 28,482,857 18,000,280 Capital projects
Debt service:
— 10,705 10,764 24,452 — Principal retirement
15,133 11,914 25,504 32,495 23,423 Interest and fiscal charges
68,543,235 60,661,667 81,678,496 89,009,765 89,705,224 Total Expenditures
Excess (Deficiency) of Revenues Over (Under)
Expenditures20,512,153 31,216,227 20,451,877 31,498,089 34,050,505
Other financing sources (uses):
1,219,485 — — — — Proceeds from sale of land
10,781,267 6,131,440 10,079,550 19,078,824 14,852,704 Transfers in
(11,568,281) (6,681,440) (10,679,550) (20,544,474) (16,152,704) Transfers out
— — — 49,487 — Debt Issuance Proceeds (2)
— — — — — Capital leases
— — — — — Proceeds from sale of capital assets
432,471 (550,000) (600,000) (1,416,163) (1,300,000) Total Other Financing Sources (Uses)
739,933 609,515 — — — Extraordinary gain/loss on dissolution of RDA
— — — — — Special item (interfund loan payoff)
$ 21,684,557 $ 31,275,742 $ 19,851,877 $ 30,081,926 $ 32,750,505 Net Change in Fund Balances
Debt Service as a Percentage of Noncapital
Expenditures (1)0.03% 0.06% 0.06% 0.09% 0.03%
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REVENUE CAPACITY INFORMATION
157
198
Tax Revenue by Source
158
199
Top 25 Bradley-Burns Sales Tax Producers
159
200
Top 25 Measure G Sales Tax Producers
160
201
Taxable Sales by Category
161
202
Taxable Sales by Category
162
203
Assessed Value of Taxable Property
163
204
Direct and Overlapping Property Tax Rates
164
205
Principal Property Taxpayers
165
206
Property Tax Levies and Collections
166
207
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167
208
DEBT CAPACITY INFORMATION
168
209
Ratios of Outstanding Debt by Type
169
210
Ratios of Outstanding Debt by Type
170
211
Ratios of General Bonded Debt Outstanding
171
212
CITY OF LA QUINTA TABLE 17
Direct and Overlapping Debt
June 30, 2025
(in dollars)
Total Assessed Valuation (1)19,725,339,533$
Overlapping Debt (3)
16.69%640,515,000$ 106,914,764$
51.97%200,619,345 104,257,861
20.09%475,170,000 95,466,405
88.91%155,000 137,814
86.46%345,000 298,270
307,075,114
4.65%1,134,209,783$ 52,718,071$
4.65%603,055,000 28,029,996
51.97%31,156,380 16,191,348
20.09%6,325,000 1,270,756
Desert Recreation District General Fund Obligations 27.32%993,462 271,384
Total Overlapping General Fund Debt 98,481,555
Overlapping Tax Increment Debt
Successor Agencies 12.455-100.00%355,165,000 206,995,105
Total Overlapping Tax Increment Debt
Total Gross Overlapping Debt 612,551,774
Less: Riverside County Supported Obligations -
Total Net Overlapping Debt 612,551,774
338,056$ 338,056
338,056
612,889,830$
Estimated Share of
Overlapping Debt
Outstanding Debt
6/30/25
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.
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CITY OF LA QUINTA
Legal Debt Margin Information
Last Ten Fiscal Years
(in dollars)
2016 2017 2018 2019 2020
Assessed valuation (1)11,930,906,878$ 12,457,435,999$ 12,867,519,997$ 13,351,737,881$ 13,980,319,465$
Conversion Percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation(2)2,982,726,720 3,114,359,000 3,216,879,999 3,337,934,470 3,495,079,866
Debt limit percentage (2)15%15%15%15%15%
Debt limit 447,409,008 467,153,850 482,532,000 500,690,171 524,261,980
- -- --
Legal debt margin 447,409,008$ 467,153,850$ 482,532,000$ 500,690,171$ 524,261,980$
0.0%0.0%0.0%0.0%0.0%
Fisca
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.
Source:Riverside County Auditor Controller
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TABLE 18
2021 2022 2023 2024 2025
14,359,765,558$ 15,163,622,940$ 16,667,089,894$ 18,200,952,648$ 19,679,681,333$ Assessed valuation (1)
25%25%25%25%25%
3,589,941,390 3,790,905,735 4,166,772,474 4,550,238,162 4,919,920,333
15%15%15%15%15%Debt limit percentage (2)
538,491,208 568,635,860 625,015,871 682,535,724 737,988,050 Debt limit
Total net debt applicable to limit
- - - - - General obligation bonds (3)
538,491,208$ 568,635,860$ 625,015,871$ 682,535,724$ 737,988,050$ Legal debt margin
0.0% 0.0% 0.0% 0.0% 0.0%
al Year
Total debt applicable to the limit
as a percentage of debt limit
174
215
Pledged-Revenue Coverage
175
216
DEMOGRAPHIC AND ECONOMIC INFORMATION
176
217
Demographic and Economic Statistics
177
218
Principal Employers
178
219
Full-time City Employees by Function
179
220
OPERATING INFORMATION
180
221
Operating Indicators by Function
181
222
CITY OF LA QUINTA TABLE 24
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Public Works:
128 128 128 128 129 129 129 129 129 129
34 36 36 36 79 81 81.1 82.6 83.6 85.0
281 372 372 372 372 372 372 382 382 382
54 54 54 54 50 50 50 50 51 51
3,018 5,758 5,758 5,408 4,808 4,808 4,808 4,858 4,858 4,858
8 8 8 8 8 8 8 8 8 9
Parks and Recreation:
Parks(4)13 13 13 13 14 14 17 17 18 18
218 218 218 218 - - - - - -
40 40 40 40 - - - - - -
238 238 235 235 235 235
114 114 111 111 111 111
17 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 Municipal golf courses
Undeveloped Park Acreage
Park Acreage
Traffic signals
Traffic signs
Bridges(3)
Streetlights (2)
Hiking Trails (miles)
City-Owned Acres(4)
City-Improved Acres(4)
Fiscal Year
Bikepaths (miles) (1)
Streets (miles)
Senior/Wellness Center
Museum
Library
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)The decorative streetlights in Old Town were added for the first time in 2017.
(3)In 2024-25 the City completed work on the Dune Palms Bridge; the total bridge count has been adjusted to reflect only bridges on public roadways.
(4)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 parks 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.
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CITY OF LA QUINTA TABLE 25
Schedule of Insurance in Force
June 30, 2025
Company Name Policy Number Coverage Limits Term Premium
National Union Fire Insurance 01-309-02-02 Crime, Forgery, Fraud $1 Million 07/01/24 to 07/01/25 $1,800
Alliant Insurance Services, Inc
California Self-Insured All Risk Property Insurance $25 Million 07/01/24 - 07/01/25 $428,956
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 07/01/24 - 07/01/25 $379,413
Joint Powers Pool and Automobile Liability Single Limit per Occurrence
Insurance Authority
California Self-Insured Workers' Compensation $10 Million 07/01/24 - 07/01/25 $225,876
Joint Powers Pool Per Occurrence
Insurance Authority
Source:City of La Quinta
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224
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ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR 2024/25 –
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 10 of the Management Discussion and Analysis or MD&A of the fiscal
year (FY) 2024/25 ACFR for La Quinta, and further described in detail on page 20.
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 $594,231,375 or 63% of the city’s total $950,550,296 Net
Position (total assets and deferred outflows) include:
129 miles of streets and 121 miles of sidewalks
18 parks with amenities that include swimming pools, pickleball and tennis courts;
X Park; soccer fields and softball/baseball diamonds; dog parks; playground
equipment; and more.
22 city-owned buildings
Capital Assets 594,231,375$
Restricted 106,639,960$
Unrestricted 249,678,961$
TOTAL NET POSITION 950,550,296$
Net Position Summary
FY 2024/25
ATTACHMENT 2
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85 miles of bike paths
4,800-plus street signs
51 traffic light signals, over 100 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 amounts reported as
unrestricted for financial reporting purposes may still be subject to internal limitations or
designations.
For ACFR reporting purposes, 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 the City, the
major components included within unrestricted net position, as reported in the FY 2024/25
ACFR, include the following:
Non-Spendable: Land Held for Resale $5,403,652
Non-Spendable: Due from Successor Agency $14,375,798
(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) $6,172,305
Reserves – Committed $45,000,000
Reserves – Assigned $81,642,967
Internal Service Funds $30,218,520
(Equipment Replacement, Information Technology, Park Equipment and Facilities,
and Insurance)
Unassigned Fund Balance
The Unassigned Fund Balance at approximately $75.7 million, as reported by the City’s
FY 2024/25 ACFR, are funds that have not been assigned to other Special Revenue
Funds and that are not restricted, committed, or assigned to specific purposes within the
General Fund.
While the City’s FY 2024/25 ACFR reports total unrestricted net position of $249,678,961,
this amount is not fully available to meet ongoing obligations due to internal restrictions,
policy-driven reserves, non-spendable assets, and internal service fund commitments.
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.
227
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.
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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
229
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.
230
City of La Quinta
FINANCIAL ADVISORY COMMISSION SPECIAL MEETING
DEPARTMENTAL REPORT
TO: Members of the Financial Advisory Commission
FROM: Claudia Martinez, Finance Director/City Treasurer
DATE: February 11, 2026
SUBJECT: FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES
The Finance Department would like to provide updates on the following matters.
AUDIT & FINANCIAL REPORTING
Published the Fiscal Year (FY) 2024/25 Annual Comprehensive Financial Report
(ACFR)
Single Audit for federal funds for FY 2024/25 is currently in process
COMMITTEE UPDATES
Financial Projections Task Force (Commissioners Anderson and Dorsey)
o The Fiscal Year (FY) 2025/26 budget is currently being updated in the
TrueComp (GovInvest) Financial Forecasting software, with related
meetings to be scheduled.
Financial Statement and Audit training – staff is currently researching options with
the current auditing firm.
FINANCE DEPARTMENT UPDATES
The Finance Department will be recognized during the upcoming week of March 23 – 27
in observance of Government Finance Professionals Week, a statewide initiative
supported by California Society of Municipal Finance Officers (CSMFO), highlighting the
role of finance staff in supporting fiscal transparency, regulatory compliance, and public
trust.
DEPARTMENTAL REPORT ITEM NO. 1
231
CITY UPDATES
SilverRock Update – The City has a dedicated website,
www.laquintaca.gov/taluslq, which includes updates, documents, and a timeline
outlining the Talus/SilverRock Resort project. The City Manager and City Attorney
provide regular case updates during Council meetings, and those updates will also
be posted on the website.
Hwy 111 Corridor Specific Plan – The City has a dedicated website,
https://www.laquintaca.gov/our-city/city-departments/design-and-
development/planning-division/highway-111-specific-plan , updates below:
o Council and Planning Commission joint meeting held on September 26,
2023.
o Planning Commission meeting held on October 14, 2025 and City Council
meeting held on November 18, 2025, with a continuation on January 20,
2026.
o To date, expenditures related to the project are detailed in the Project
Activity Report (Attachment 1), in the amount of $1,406,024.05. 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 Council study sessions held on
January 16, 2024 and February 18, 2025. On December 16, 2025, Council
adopted a resolution to appropriate $10 million from General Fund
Unassigned Reserves; approved the transfer of funding from the City to the
La Quinta Financing Authority through a Financing Agreement between the
2 entities; and approved the following two agreements with Imperial
Irrigation District (IID) related to the Avenue 58 substation expansion and
improvements, and the purchase of certain power equipment:
Engineering and Procurement Agreement (for certain long lead-time
equipment to be paid for by the City), subject to reimbursement by
developers; and
Funding and Reservation of Capacity Agreement for the Avenue 58
Transformer Bank Addition.
o Coachella Valley Power Agency (CVPA):
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.
April 1, 2025 – Council authorized the City as the first member of
CVPA JPA via Resolution No. 2025-0007
232
October 7, 2025 – The Coachella Valley Public Agency (CVPA) Joint
Powers Authority (JPA) currently includes the Cities of La Quinta and
Indio, and the County of Riverside. The CVPA has contracted with
the Coachella Valley Association of Governments (CVAG) to
oversee the administration and management of the CVPA while the
CVPA JPA works to hire its own staff. For FY 2025/26, the CVPA
JPA members approved a $500,000 budget, and agreed that the
three members would contribute $166,666 each.
Staff encourages Commission members to view the meetings as time permits.
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
UPCOMING EVENTS
The City is hosting a free Household Hazardous Waste Collection Event
on Saturday, February 14, 2026, in the City Hall South Parking Lot. This event will
take place from 9 a.m. to 2 p.m.
The La Quinta Art Celebration, a four-day event celebrating the finest artists from
around the world, will be held from February 26 – March 1, 2026 at the La Quinta
Civic Center Campus from 10:00 a.m. – 5:00 p.m. daily.
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
2. Government Finance Professionals Week Handout
233
Page 1 of 62/2/2026 11:55:19 AM
Project Activity Report
City of La Quinta By Project Number
Report Dates: 07/01/2019 - 02/02/2026
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
-1,228,581.80201905MGMeasure 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
-25,166.00MG 201905 HIGHWAY 111 CORRIDOR AREATransfers In 12/31/2024401-0000-49500
-96,466.25MG 201905 HIGHWAY 111 CORRIDOR AREATransfers In 03/31/2025401-0000-49500
-82,132.22MG 201905 HIGHWAY 111 CORRIDOR AREATransfers In 06/30/2025401-0000-49500
-130,722.10FY 24/25 Total:
0.00201905SB1SB1 Maintenance Funding SB1 Maint Fund - SB1 Maintenance Funding
ATTACHMENT 1
234
Report Dates: 07/01/2019 - 02/02/2026Project Activity Report
Page 2 of 62/2/2026 11:55:19 AM
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
-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: -1,228,581.80
Expenses
Account NameAccount Key Category Total Activity
1,314,812.80201905DDesign 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.
235
Report Dates: 07/01/2019 - 02/02/2026Project Activity Report
Page 3 of 62/2/2026 11:55:19 AM
ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number
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.
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.
78,989.7204/2025 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign06/30/2025401-0000-60185 380-0072463GHD INC.
70,173.755/01-6/30/25 HWY 111 CORRIDOR PLANNING/ENGINDesign06/30/2025401-0000-60185 380-0076089GHD INC.
269,200.85FY 24/25 Total:
72,112.2509/2025 HWY 111 CORRIDOR PLANNING/ENGINEERINDesign12/05/2025401-0000-60185 380-0079261GHD INC.
32,746.25HWY 111 CORRIDOR PLANNING/ENGINEERING SVCSDesign01/23/2026401-0000-60185 380-0083152GHD INC.
104,858.50FY 25/26 Total:
91,211.25201905PProfessional 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
236
Report Dates: 07/01/2019 - 02/02/2026Project Activity Report
Page 4 of 62/2/2026 11:55:19 AM
ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number
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
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
237
Report Dates: 07/01/2019 - 02/02/2026Project Activity Report
Page 5 of 62/2/2026 11:55:19 AM
ActivityDescriptionPost DateGL Account Number GL Account Name Vendor Name Item Number
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
427.5005/2025 HIGHWAY 111 CORRIDORProfessional Services 06/13/2025401-0000-60103 2024-03.11NAI CONSULTING INC
332.5006/2025 HIGHWAY 111 CORRIDORProfessional Services 06/30/2025401-0000-60103 2024-03.12NAI CONSULTING INC
9,247.50FY 24/25 Total:
142.5007/2025 HIGHWAY 111 CORRIDORProfessional Services 08/29/2025401-0000-60103 2024-03.13R1NAI CONSULTING INC
770.0008/2025 HIGHWAY 111 CORRIDORProfessional Services 09/26/2025401-0000-60103 2024-03.14NAI CONSULTING INC
390.0009/2025 HIGHWAY 111 CORRIDORProfessional Services 10/24/2025401-0000-60103 2024-03.15NAI CONSULTING INC
675.0010/2025 HIGHWAY 111 CORRIDORProfessional Services 12/05/2025401-0000-60103 2024-03.16NAI CONSULTING INC
432.5012/2025 HIGHWAY 111 CORRIDORProfessional Services 01/23/2026401-0000-60103 2024-03.18R1NAI CONSULTING INC
2,410.00FY 25/26 Total:
Total Expenses: 1,406,024.05
177,442.25201905 Total:
238
Report Dates: 07/01/2019 - 02/02/2026Project Activity Report
Page 6 of 62/2/2026 11:55:19 AM
Summary
Project NameProject Number
Project Summary
Total Revenue Total Expense
Revenue Over/
(Under) Expenses
Highway 111 Corridor Area Plan Implementation2019051,228,581.80 1,406,024.05 -177,442.25
Project Totals:1,228,581.80 1,406,024.05 -177,442.25
Group Summary
Group Total Revenue Total Expense
Revenue Over/
(Under) Expenses
Fund 401 Construction in Process 1,228,581.80 1,406,024.05 -177,442.25
Group Totals:1,228,581.80 1,406,024.05 -177,442.25
Type Summary
Type Total Revenue Total Expense
Revenue Over/
(Under) Expenses
St Improvements 1,228,581.80 1,406,024.05 -177,442.25
Type Totals:1,228,581.80 1,406,024.05 -177,442.25
239
GOVERNMENT FINANCE
-PROFESSIONALS WEEK -
Government Finance Professionals Week
Celebrating California's Local Government Finance Teams
March 23-27, 2026
-***-
WHAT IS GOVERNMENT FINANCE PROFESSIONALS WEEK?
Government Finance Professionals Week is a statewide recognition initiative supported by the
California Society of Municipal Finance Officers (CSMFO). Each year, during the last week
of March, California local governments recognize the finance professionals who safeguard
public resources and support the delivery of essential community services.
OPPORTUNITY FOR
LEADERSHIP SUPPORT
Government Finance
Professionals Week offers a
meaningful opportunity to
recognize staff whose work is
essential to fiscal stability,
transparency, and public
trust.
WHO ARE GOVERNMENT
FINANCE PROFESSIONALS?
Finance professionals include
staff across finance '
accounting, budgeting,
treasury, payroll, grants, and
financial systems who
collectively ensure the fiscal
health and sustainability of
local government agencies.
WHY IT MATTERS TO OUR ORGANIZATION
Government finance professionals play a vital role in ensuring:
AGENCY PARTICIPATION
Participation is flexible and can
be tailored to agency capacity.
Common activities include:
•Official proclamation
•Staff recognition at a public
meeting
•Share on social media
•Hosting a recognition activity
. Responsible stewardship of public funds by managing budgets, cash flow, investments, and
long-term financial planning .
. Transparency and public trust by producing accurate, timely financial reports and budgets that
support informed decision-making.
. Regulatory compliance by navigating California's complex fiscal, audit, grant, and reporting
requirements.
. Reliable community services with strong financial management that supports public safety,
infrastructure, utilities, and other essential services .
. Meeting state requirements, such as the new SB 827, which requires mandatory fiscal and
financial training for officials and staff with financial oversight responsibilities.
Ci) www.CSMFO.org a info@staff.csmfo.org � 916-231-2137 11111-CALIFORNIA I SOCIETY<>(MUNICIPAL FINANCE OFFICERS ATTACHMENT 2
240
City of La Quinta
FINANCIAL ADVISORY COMMISSION SPECIAL MEETING
DEPARTMENTAL REPORT
TO: Members of the Financial Advisory Commission
FROM: Rosemary Hallick, Principal Management Analyst
DATE: February 11, 2026
SUBJECT: THIRD QUARTER 2025 (JULY – SEPTEMBER) SALES TAX UPDATE
The attached report was prepared by consultants, HdL Companies, as an update of sales
tax receipts for third quarter sales from July to September 2025.
La Quinta’s overall adjusted sales tax receipts for major industry groups increased
3.7% as compared to last year. As a comparison, Riverside County was up 2.4% and
the state was up 1.9%. The increase was spread between various categories such
as restaurants, state & county pools, building and construction, and autos &
transportation. Details may be found in the attached quarterly Sales Tax Update
newsletter prepared by HdL.
The City’s sales-per-capita remains higher than both the county and state averages.
General consumer goods (such as department stores) made up 37% of sales tax
revenue and 41% of Measure G revenue.
Autos and transportation made up 10% of sales tax revenue and 15% of Measure G
revenue.
The City continues to benefit from online purchasing in the form of the County pool
share, which was 15% of our sales tax revenue.
DEPARTMENTAL REPORT ITEM NO. 2
241
242
The City continuously monitors local development, economic conditions, impacts on travel
and trade, as well as legislative and judicial developments for any potential changes
affecting sales tax collections.
Fiscal year-to-date sales tax collections are shown in the chart below. Combined, the City
has received $10.5 million in sales and transactions taxes so far this year, as compared to
$9.96 million in the same periods of Fiscal 2024/25, up about 5.06%.
Attachment 1: HdL Q3 2025 Sales Tax Update
Payment
Bradley Burns
33060 Measure G 520
July 2025 Advance 842,524$ 1,128,639$
August 2025 Advance 704,882$ 976,087$
September 2025 -3rd Qtr Payment 824,968$ 1,078,869$
2025 2,372,374$ 3,183,595$
October 2025 Advance 1,152,415$ 1,441,580$
November 2025Advance 1,021,291$ 1,298,233$
December 2025 - 4th Qtr Payment
2025 2,173,706$ 2,739,813$
January 2026 Advance
February 2026 Advance
March 2026 - 1st Qtr Payment
2026 -$ -$
April 2026 Advance
May 2026 Advance
June 2026 - 2nd Qtr Payment
2026 -$ -$
Total 4,546,080$ 5,923,408$
Last Year, same period 4,270,436$ 5,694,478$
Variance 6.45%4.02%
243
www.hdlcompanies.com | 888.861.0220
Q3 2024*
Q3 2025*
Legend
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
SALES TAX BY MAJOR BUSINESS GROUP*Allocation aberrations have been adjusted to reflect sales activity
General
Consumer
Goods
Restaurants
and
Hotels
County
and State
Pools
Building
and
Construction
Autos
and
Transportation
Food
and
Drugs
Fuel and
Service
Stations
Business
and
Industry
TOP 25 PRODUCERSCITY OF LA QUINTA HIGHLIGHTS
Published by HdL Companies in Winter 2026
Best Buy
Chick Fil A
Circle K
Costco
Floor & Decor
Genesis/Hyundai of La Quinta
Hobby Lobby
Home Depot
In N Out Burger
Kohls
La Quinta Chevrolet & Cadillac
La Quinta Resort & Club
Longhorn Steakhouse
Lowes
Marshalls
McDonald’s
Ross
Target
TJ Maxx
Torre Nissan
Tower Mart
Ulta Beauty
Verizon Wireless
Walmart Supercenter
WDC Kitchen & Bath La Quinta
SALES TAX UPDATE
CITY OF LA QUINTA
3Q 2025 (JULY - SEPTEMBER)
La Quinta’s receipts from July - September
were 13.0% above the third sales period
in 2024. Excluding reporting aberrations,
actual sales were up 3.7%.
The building-construction sector reported
modest gains, despite higher material
costs.
The autos-transportation industry saw
record-breaking zero emission vehicle
sales, driven partly by expiring federal tax
credits.
One-time use tax payments in the year-
ago period resulted in a temporary decline
from the business-industry category.
In the third quarter of 2025, revenue
from fuel-service stations dropped due to
refinery issues and volatile markets.
With consumer confidence still wavering,
totals from general consumer goods were
lower than last year, while food-drugs
remained flat.
The City’s share of the countywide use tax
pool increased 19.7% when compared to
the same period in the prior year.
Measure G, the City’s voter-approved
transactions and use tax, brought in
$3,182,539.
Net of aberrations, taxable sales for
Riverside County grew 2.4% over the
comparable time-period; the Southern
California region was up 1.8%.
TOTAL:
2.9%
$3,182,539
Measure G
TOTAL:$ 2,388,086
3.7% 2.4% 1.9%
COUNTY STATE
LA QUINTA
3Q2025
ATTACHMENT 1
244
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q3 '25*La QuintaBusiness Type Change Change Change
County HdL State
2.1%1.6%-0.7% 176.0 Casual Dining
-2.3%-0.9%4.3% 118.5 Electronics/Appliance Stores
-1.1%-0.2%10.6% 100.3 Quick-Service Restaurants
-5.0%-4.8%-12.7% 84.4 Service Stations
3.7%3.8%4.1% 79.5 Family Apparel
-2.0%0.4%0.0% 62.3 Specialty Stores
-2.0%-3.1%-0.8% 60.1 Grocery Stores
0.9%2.8%39.1% 42.3 Leisure/Entertainment
-0.9%1.4%-10.7% 25.6 Fast-Casual Restaurants
3.7%-1.3%1.0% 24.4 Home Furnishings
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
La Quinta This Quarter*
8%
Others
15%
Pools
17%
Restaurants
10%
Autos/Trans.
12%
Building
37%
Cons.Goods
*ADJUSTED FORECONOMIC DATA
SALES TAX UPDATECITY OF LA QUINTA3Q 2025
STATEWIDE RESULTS
California’s local one-cent sales and use tax
receipts for July through September were
1.8% higher than the same quarter last year,
after adjusting for accounting anomalies.
While growth appears modest, calendar
year 2025 remains on pace to rebound
following two years of declines. Combined
with second-quarter activity, the summer
period posted a 1% improvement over the
2024 season.
Sustained consumer trends reflected a
willingness to spend while remaining cost-
conscious and prioritizing value. Online
retailers, reporting to both business-
industry and countywide use tax pools
(depending on inventory location at
purchase), recorded the strongest gains.
This momentum extended to brick-and-
mortar retailers, which also posted modest
improvements. Seasonal “back-to-school”
activity boosted men’s and family apparel
along with shoe stores, lifting the General
Goods sector and enhancing expectations
for the upcoming holiday shopping period.
Tax receipts from restaurants edged higher,
supported by households’ continued desire
to eat out. Despite balancing higher menu
prices, tip fatigue, and tighter margins,
casual dining establishments generated the
largest gains. Overall, summer performance
appeared stable but lacked the tourism
surge many had hoped for.
Offsetting positive results was a decline
in revenue from fuel-service stations—
marking the 10th out of the last 11 quarters
with negative year-over-year change.
This trend is largely tied to West Texas
Intermediate (WTI) crude oil prices, which
hit their lowest monthly levels since 2021.
While lower gas prices may encourage
spending in other categories, potential oil
refinery closures in the coming year could
keep per-gallon prices elevated.
The food and drug sector continued its
downward trend as grocers remitted fewer
taxes, reflecting the challenge of generating
taxable revenue amid rising food prices.
Drug store filings have declined throughout
the year, driven partly by increased access
to medications through ecommerce
platforms and a contraction in physical store
footprints due to over-saturation and chain
bankruptcies.
Two sectors poised to benefit from
lower short-term interest rates—autos-
transportation and building-construction—
repeated a pattern of lackluster returns.
A minor uptick came from new auto
sales and leasing, while building material
suppliers struggled during the summer, likely
creating pent-up demand for repairs and
improvements ahead.
With the Federal Reserve considering
additional rate changes in early 2026,
optimism for improved consumer financing
conditions and stronger sales tax receipts
remains. As national tariff and trade talks
ease, inflationary pressures will continue to
shape spending behavior. For now, calendar
year 2025 closes with sluggish but stable
performance, awaiting broader economic
shifts.
245
POWER POINTS
FINANCIAL
ADVISORY
COMMISSION
SPECIAL MEETING
FEBRUARY 11, 2026
February 11, 2026
1
Financial Advisory Commission
Special Meeting
February 11, 2026
1
2
February 11, 2026
2
Financial Advisory Commission Special Meeting
2/11/2026
Public Comment
Financial Advisory Commission Special Meeting
2/11/2026
Confirmation of Agenda
3
4
February 11, 2026
3
Financial Advisory Commission Special Meeting
2/11/2026
Announcements, Presentations
Highway 111 Corridor Specific Plan and Development
Code Project- Planning Update
Culmination of Years of Planning that Build Together
May 2022 - Today
5
6
February 11, 2026
4
2019 Corridor Plan
2019 Corridor Plan
7
8
February 11, 2026
5
HIGHWAY 111 CORRIDOR SPECIFIC PLAN
SIZING UP OUR FUTURE COMMUNITY
9
10
February 11, 2026
6
Mixed Use (housing over retail), Affordable Housing
(low & v. low income), Live-Work, Boutique Urban
Hotels, Cinema Anchored Mixed-Use
Townhomes/Walk-Ups, Small Format Stacked Flats
(4 to 8 units), Bungalow Courts, Compact Single-
Family Starter Homes, Small In-Line Retail
In-Line Retail Infill (dining focused along continuous
promenade), Creative Retail Campus, Food Halls,
Container Parks, Outdoor Dining-Entertainment.
Class A Moderate Density Office (medical or
training); Education, University Extension or
Discovery, Business Hotel, Retail-Flex
11
12
February 11, 2026
7
THREE ADAPTIVE LAND USE POLICIES
ACTIVE
FRONTAGE
AUTO-ORIENTED
DEVELOPMENT
BLOCK EDGES &
PATTERN
Anchor new development with
‘active frontage’ at interior
roadway intersections, or nodes,
which are existing key entry-
points to development. The
intended result are vibrant
“pockets of walkability.”
Establishes an overlay along
Highway 111, extending 300 feet
offset from the public right-of-
way, where small-format “pad”
retail, small in-line retail, and
drive-thrus are allowed
development types.
Flexible approach to block
configuration that can be
adapted to the prevailing
surrounding pattern for a new or
infill project. The intent is for
main frontages and entries to
face each other or align together.
LAND USE FRAMEWORK
13
14
February 11, 2026
8
ACTIVE & WALKABLE CORRIDORS
AFFORDABLE HOUSING & COMMUNITY RESOURCES
15
16
February 11, 2026
9
DEVELOPMENT
CONCEPTS
La Quinta Drive
280 Units
2 Restaurants
School / Training
DEVELOPMENT
CONCEPTS
Residence Inn
120 Units
Entertainment Use
Senior Living
17
18
February 11, 2026
10
DEVELOPMENT
CONCEPTS
Dune Palms Rd
126 Units
Fast Food / Wash
Multi-Use Path
DEVELOPMENT CONCEPTS | Mixed-Use at Dune Palms
19
20
February 11, 2026
11
DEVELOPMENT CONCEPTS | Mixed-Use at Dune Palms
DEVELOPMENT CONCEPTS | Mixed-Use at La Quinta Dr
21
22
February 11, 2026
12
DEVELOPMENT CONCEPTS | Mixed-Use at La Quinta Dr
23
24
February 11, 2026
13
Financial Advisory Commission Special Meeting
2/11/2026
Consent Calendar
Financial Advisory Commission Special Meeting
2/11/2026
Business Item No. 1
Receive and File Fiscal Year Annual Comprehensive
Financial Report for Year Ended June 30, 2025
25
26
February 11, 2026
14
Conducted virtually by LSL, LLP from September 2025– December 2025
Reviewed nearly 1,000 documents & conducted staff interviews
Issued a clean audit opinion, the most favorable conclusion
ACFR meets the GFOA’s Certificate of Achievement Program’s requirements
and has been submitted for recertification
Auditor comments related to the audit will be provided this evening
Audit
Summary
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
27
28
February 11, 2026
15
Statement of Net Position
AmountCategory
594,231,375Capital Assets
106,639,960Restricted
249,678,961Unrestricted
$950,550,296TOTAL
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
Governmental Fund Balances
Total FundsAll Other FundsGeneral FundCategory
$ 25,685,194$ 3,750$ 25,681,444Non-Spendable
74,604,02368,431,7186,172,305Restricted
45,000,000-45,000,000Committed
81,642,967-81,642,967Assigned
75,750,215(8,734,638)84,454,583Unassigned
$ 302,652,399$ 59,701,100$ 242,951,299Total
$ 36,870Prepaid Costs
5,403,652Land held for resale
14,375,798RDA Loan
5,865,124Notes & loans
$ 6,172,305Pension Trust
24,528,484Housing Funds
43,903,234Restricted Funds
29
30
February 11, 2026
16
Governmental Fund Balances
Total FundsAll Other FundsGeneral FundCategory
$ 25,685,194$ 3,750$ 25,681,444Non-Spendable
74,604,02368,431,7186,172,305Restricted
45,000,000-45,000,000Committed
81,642,967-81,642,967Assigned
75,720,215(8,734,368)84,454,583Unassigned
$ 302,652,399$ 59,701,100$ 242,951,299Total
$ 15,000,000Natural Disaster
13,000,000Economic Disaster
5,000,000Cash Flow Reserve
12,000,000Capital Replacement
$ 19,391,133Fire Services
29,623,592Sales Tax (Measure G)
31,778,242Capital Projects
850,000Carryovers
Long-Term Debt
20252024Debt Type
$44,127$ 91,795Leases
1,641,2881,185,597Compensated Absences
1,056,821282,309Subscription IT Liabilities
$2,742,236$1,559,701Total
$ 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)
505,73024/25 Interest Earnings (Gain)
$6,172,305Total Trust Balance
31
32
February 11, 2026
17
Major
Infrastructure
Investments
Dune Palms Bridge Improvements
$9,972,000
Fred Waring Drive Pavement Rehabilitation
$1,529,000
Fritz Burns Park Improvements
$1,066,000
Dune Palms Road Pavement Rehabilitation
$914,000
Village Art Plaza Promenade & Cultural Campus
$656,000 Fred Waring Drive
Dune Palms Bridge
Fritz Burns Park
Fiscal Sustainability
Adopted a balanced 2025/26 budget
Continue to address long-term liabilities
Mixture of housing and commercial
developments are under construction
Long-term vision and planning are a priority
33
34
February 11, 2026
18
LSL, LLP
Auditor Comments
Presentation of the Annual
Financial Audit for the Fiscal Year
Ended June 30, 2025
February 11, 2026
35
36
February 11, 2026
19
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Auditors’ Responsibilities
•Conduct the audit in accordance with:
Generally accepted auditing standards
Government Auditing Standards
Uniform Guidance
•Exercise professional judgment, and professional skepticism
•Conduct a risk-based approach to the audit
•Understand the entity’s internal control structure
•Evaluate significant accounting estimates for reasonableness
•Evaluate if there are any conditions which indicate doubt of continued financial viability
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Scope of Audit
•Testwork Dates
Interim: June 16 – June 19, 2025
Year-End: September 15 – September 26, 2025
Report Issuance: December 19, 2025
•Interim Audit Procedures
Examination of Internal Controls and Provide Feedback to Management
Evaluation of Fraud Risks and Perform Planned Responses
•Year-End Audit Procedures
Confirmation of Accounts and Balances with Third Parties
Examination and Inspection of Source Documents
Analytical Procedures
Inquiries of Management
37
38
February 11, 2026
20
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Audit Results
•Unmodified auditors’ opinion
•Report on Internal Controls and Compliance
No material weaknesses identified
No significant deficiencies identified
No material noncompliance identified
•Change in accounting policies for GASB 101, Compensated Absences
•Estimates are reasonable
Pension and OPEB liabilities
•No difficulties encountered during the audit
•No corrected or uncorrected misstatements
•No disagreements with management
•No fraud, waste, or abuse identified
•Prior year finding is considered resolved
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Questions?
39
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February 11, 2026
21
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Contact Us
www.lslcpas.com
Ryan.Domino@lslcpas.com
(949) 829-8299
Financial Advisory Commission Special Meeting
2/11/2026
Departmental Report Item No. 1
Finance Department Current and Future Initiatives
41
42
February 11, 2026
22
Financial Advisory Commission Special Meeting
2/11/2026
Departmental Report Item No. 2
Sales Tax Update-Third Quarter 2025 (July-September)
Major Industry Groups
43
44
February 11, 2026
23
Summary
• Sales Taxes for the quarter on a cash-
receipt basis were up as compared to last
year
• The County and State also saw increases
YOY
• Increases were concentrated in the
restaurant/hotel sector and the county pool
Top 25 Businesses
Amazon Fulfillment Services Lowes Best Buy Lowes
Amazon MFA Marshalls ChickFilA Marshalls
Best Buy OneSource Supply Solutions Circle K McDonald's
Circle K Restoration Hardware Costco Ross
Costco Ross Floor & Décor Target
Dept. of Motor Vehicles Target Genesis/Hyundai of La Quinta TJ Maxx
Ferguson Enterprises Tesla Motors Hobby Lobby Torre Nissan
Floor & Décor TJ Maxx Home Depot Tower Mart
Genesis Hyundai of La Quinta Tower Mart In-n-Out Burger Ulta Beauty
Home Depot Trader Joe's Kohls Verizon Wireless
In-n-Out Burger Verizon Wireless La Quinta Chevrolet & Cadillac Walmart
Kohls Walmart La Quinta Resort & Club WDC Kitchen & Bath
La Quinta Resort & Club Longhorn Steakhouse
TOP 25 PRODUCERS - In Alphabetical Order
Q3 2025
Measure G Sales Tax
Change from Q2: Add Hobby Lobby, ChickFilA, and Longhorn Steakhouse. Remove PGA West
Private Clubhouse, Trader Joe's and Vons
Change from Q2: Add Tesla Motors, Ferguson Enterprises, and Restoration Hardware. Remove
Nixon Egli Equipment, PGA West Private Clubhouse, and Ulta Beauty.
45
46
February 11, 2026
24
Sales and MG History
2025/26 Budgets: Measure G $14.4 million, Sales Tax $11.6 million
The next Financial Advisory Commission
Special Meeting will be on
April 8, 2026
47
48
February 11, 2026
25
49