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Home My WebLink About2025 12 03 FAC Minutes Special MeetingFINANCIAL 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 FINANCIAL ADVISORY COMMISSION Page 1 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. FINANCIAL ADVISORY COMMISSION Page 2 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 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. FINANCIAL ADVISORY COMMISSION Page 3 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 FINANCIAL ADVISORY COMMISSION Page 4 of 4 DECEMBER 3, 2025 SPECIAL MEETING — MINUTES