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Home My WebLink About2026 02 17 CouncilCITY COUNCIL AGENDA Page 1 of 8 FEBRUARY 17, 2026 CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBER 78495 Calle Tampico, La Quinta REGULAR MEETING ON TUESDAY, FEBRUARY 17, 2026 3:00 P.M. CLOSED SESSION | 4:00 P.M. OPEN SESSION 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: Councilmembers: Fitzpatrick, McGarrey, Peña, Sanchez, and Mayor Evans PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda pursuant to the “Public Comments – Instructions” listed at the end of the agenda. The City Council 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 CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; CASES NAMES AND NUMBERS – MULTIPLE (listed below, all in U.S. Bankruptcy Court, District of Delaware) CASE NAME: CASE NUMBER SilverRock Development Company, LLC 24-11647 SilverRock Lifestyle Residences, LLC 24-11648 SilverRock Lodging, LLC 24-11650 SilverRock Luxury Residences, LLC 24-11652 SilverRock Phase I, LLC 24-11654 RGC PA 789, LLC 24-11657 City Council agendas and staff reports are available on the City’s website at www.LaQuintaCA/PublicMeetings.gov CITY COUNCIL AGENDA Page 2 of 8 FEBRUARY 17, 2026 2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: CONSTRUCTION LOAN SERVICES II, LLC V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (U.S. District Court, District of Delaware, CASE NO. 25-1342-CFC) 3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: CITY OF LA QUINTA V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2404750) 4. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: LANGDON V. CITY OF LA QUINTA (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2509382) RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. REPORT ON ACTION(S) TAKEN IN CLOSED SESSION PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda pursuant to the “Public Comments – Instructions” listed at the end of the agenda. The City Council 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)]. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1. SILVERROCK (FORMERLY TALUS) DEVELOPMENT PROJECT – STATUS UPDATE 2. VISIT GREATER PALM SPRINGS 2026 GOALS AND OBJECTIVES – PRESENTATION BY PRESIDENT AND CHIEF EXECUTIVE OFFICER SCOTT WHITE AND CHIEF OF SALES AND MARKETING OFFICER COLLEEN PACE 3. CERTIFICATES OF RECOGNITION HONORING PILLAR OF THE COMMUNITY AWARD RECIPIENTS DOUGLAS (DOUG) HASSETT AND PHILIP (PHIL) LA GRECA CITY COUNCIL AGENDA Page 3 of 8 FEBRUARY 17, 2026 4. CERTIFICATES OF RECOGNITION HONORING DISTINGUISHED CITIZEN AWARD RECIPIENTS LORNA CURRAN, JUDY HOFFMAN, AND PRISCILLA PALTIN CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. ADOPT ORDINANCE NO. 629 ON SECOND READING DESIGNATING SPEED LIMITS FOR VARIOUS STREETS 9 2. ACCEPT ON-SITE IMPROVEMENTS ASSOCIATED WITH THE GRIFFIN RANCH RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 32879, LOCATED AT THE SOUTHEAST CORNER OF AVENUE 54 AND MADISON STREET 37 3. AUTHORIZE THE PUBLIC WORKS DEPARTMENT TO UTILIZE SOUTHWEST BOULDER AND STONE TO PURCHASE UP TO $100,000 OF MATERIALS FOR FISCAL YEAR 2025/26 39 4. APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH NV5, INC TO PROVIDE ADDITIONAL DESIGN SERVICES FOR THE WASHINGTON STREET SIDEWALK IMPROVEMENTS PROJECT NO. 2023-03 AND AVENUE 50 SIDEWALK IMPROVEMENTS PROJECT NO. 2024-01 41 5. APPROVE DEMAND REGISTERS DATED JANUARY 23 AND 30, 2026 55 BUSINESS SESSION PAGE 1. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING SECTIONS 1.01.003 AND 12.20.020 OF THE LA QUINTA MUNICIPAL CODE RELATED TO CONFORMING AND CORRECTIVE REVISIONS GOVERNING CONTENTS OF CODE AND SPEED LIMITS REGULATIONS RESPECTIVELY [ORDINANCE NO. 630] 71 2. RECEIVE AND FILE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2025 77 STUDY SESSION PAGE 1. DISCUSS STRIPING REVISIONS FOR EASTBOUND HIGHWAY 111 AT WASHINGTON STREET 285 PUBLIC HEARINGS – None DEPARTMENTAL REPORTS PAGE 1. CITY MANAGER 2. CITY ATTORNEY CITY COUNCIL AGENDA Page 4 of 8 FEBRUARY 17, 2026 3. CITY CLERK 4. COMMUNITY SERVICES – QUARTERLY REPORT – OCTOBER – DECEMBER 2025 293 5. DESIGN AND DEVELOPMENT – QUARTERLY REPORT – OCTOBER – DECEMBER 2025 309 6. FINANCE 7. PUBLIC SAFETY 8. PUBLIC WORKS MAYOR’S AND COUNCIL MEMBERS’ ITEMS REPORTS AND INFORMATIONAL ITEMS 1. ART PURCHASE COMMITTEE (McGarrey & Sanchez) 2. CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Sanchez) 3. CANNABIS AD HOC COMMITTEE (Peña & Sanchez) 4. COACHELLA VALLEY ANIMAL CAMPUS COMMISSION (Sanchez) 5. COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT (Peña) 6. COACHELLA VALLEY MOUNTAINS CONSERVANCY (McGarrey) 7. COACHELLA VALLEY POWER AGENCY (Evans) 8. COACHELLA VALLEY UNIFIED SCHOOL DISTRICT COMMITTEE (Fitzpatrick & Peña) 9. COACHELLA VALLEY WATER DISTRICT JOINT POLICY COMMITTEE (Evans) 10. COMMUNITY SERVICE GRANT REVIEW COMMITTEE (Fitzpatrick & McGarrey) 11. COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS: A) CONSERVATION COMMISSION (Evans) B) CONSERVATION COMMISSION LEGISLATIVE ADVISORY AD HOC COMMITTEE (Fitzpatrick) C) ENERGY AND SUSTAINABILITY RESOURCES COMMITTEE (Evans) D) EXECUTIVE COMMITTEE (Evans) E) HOMELESSNESS COMMITTEE (Peña) F) PUBLIC SAFETY COMMITTEE (Peña) G) TRANSPORTATION COMMITTEE (Fitzpatrick) 12. DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick & McGarrey) 13. DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE (Evans & Sanchez) 14. ECONOMIC DEVELOPMENT SUBCOMMITTEE (Evans & Fitzpatrick) 15. GREATER COACHELLA VALLEY CHAMBER OF COMMERCE INFORMATION EXCHANGE COMMITTEE (Fitzpatrick) 16. LEAGUE OF CALIFORNIA CITIES: A) ANNUAL CONFERENCE DELEGATE (Evans) B) ENVIRONMENTAL QUALITY POLICY COMMITTEE (McGarrey) C) EXECUTIVE COMMITTEE – RIVERSIDE COUNTY DIVISION (McGarrey) D) PUBLIC SAFETY COMMITTEE (Sanchez) 17. PALM SPRINGS AIR MUSEUM BOARD & EXECUTIVE COMMITTEE (Evans) RIVERSIDE COUNTY: A) AIRPORT LAND USE COMMISSION (Sanchez) B) TRANSPORTATION COMMISSION (Fitzpatrick) C) TRANSPORTATION COMMISSION AUDIT AD HOC COMMITTEE (Fitzpatrick) CITY COUNCIL AGENDA Page 5 of 8 FEBRUARY 17, 2026 D) TRANSPORTATION COMMISSION COACHELLA VALLEY SAN GORGONIO PASS AREA CORRIDOR AD HOC COMMITTEE (Fitzpatrick) 18. RIVERSIDE LOCAL AGENCY FORMATION COMMISSION (Sanchez) 19. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (Sanchez) A) REGIONAL COUNCIL (Sanchez) B) TRANSPORTATION COMMITTEE (Sanchez) 20. SUNLINE TRANSIT AGENCY (Peña) 21. VISIT GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU (Evans) 22. FINANCIAL ADVISORY COMMISSION SPECIAL MEETING MINUTES DATED DECEMBER 3, 2025 315 ADJOURNMENT ********************************* The next regular meeting of the City Council will be held on March 3, 2026, at 4:00 p.m. at the City Hall Council Chamber, 78495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Monika Radeva, City Clerk of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta City Council 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 13, 2026, which is freely accessible to members of the public. DATED: February 13, 2026 MONIKA RADEVA, City Clerk 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. CITY COUNCIL AGENDA Page 6 of 8 FEBRUARY 17, 2026  If background material is to be presented to the City Council during a City Council meeting, please be advised that 15 copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution, or must be emailed to CItyClerkMail@laquintaca.gov. It is requested that this takes place prior to the beginning of the meeting. PUBLIC COMMENTS - INSTRUCTIONS Members of the public may address the City Council 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 City Clerk, it is requested that this takes place prior to the beginning of the meeting; or can be emailed in advance to CityClerkMail@LaQuintaCA.gov, no later than 12:00 p.m., on the day of the meeting. Written public comments will be distributed to Council, 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 Mayor, 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 City Clerk; 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 Mayor. In accordance with City Council Resolution No. 2022-027, 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 City Clerk 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 Council. 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 Mayor. Public speakers may elect to use printed presentation materials to aid their comments; 15 copies of such printed materials shall be provided to the City Clerk to be disseminated to the City Council, 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. CITY COUNCIL AGENDA Page 7 of 8 FEBRUARY 17, 2026 There shall be no use of Chamber resources and technology to display visual or audible presentations during public comments, unless permitted by the Mayor. 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 City Council 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/88215960899 Meeting ID: 882 1596 0899 Or join by phone: (253) 215 – 8782 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 Mayor, and will be queued in consecutive order; the City will facilitate the ability for a member of the public to be audible to the City Council 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 Mayor, in order to become audible to the City Council and the public . WRITTEN PUBLIC COMMENTS can be provided either in person during the meeting or emailed to the City Clerk’s Office at CityClerkMail@LaQuintaCA.gov any time prior to the adjournment of the meeting, and will be distributed to the City Council, made public, incorporated into the public record of the meeting, and will not be read during the meeting *9 *6 CITY COUNCIL AGENDA Page 8 of 8 FEBRUARY 17, 2026 unless, upon the request of the Mayor, a brief summary of any public comment is asked to be read, to the extent the City Clerk’s Office 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. City of La Quinta CITY COUNCIL MEETING: February 17, 2026 STAFF REPORT AGENDA TITLE: ADOPT ORDINANCE NO. 629 ON SECOND READING DESIGNATING SPEED LIMITS FOR VARIOUS STREETS RECOMMENDATION Adopt Ordinance No. 629 on second reading designating speed limits for various street segments. EXECUTIVE SUMMARY Speed surveys were conducted in January 2026 on various street segments to account for prevailing speed, accident history, and roadway characteristics not apparent to motorists. On February 3, 2026, Council introduced Ordinance No. 629 for first reading designating reduced speed limits by 5 or 10 miles per hour (mph) for 6 street segments in accordance with the 2026 Engineering and Traffic Survey (E&T Survey) included as Exhibit A, dated January 26, 2026. FISCAL IMPACT There is no fiscal impact as the speed limit signs are within the approved annual budget. BACKGROUND/ANALYSIS In order to enforce speed limits using radar, speed limits must be set in accordance with the California Vehicle Code (CVC). Per the CVC, vehicle speeds are determined by the behavior of a majority of drivers during normal driving conditions. Jurisdictions may not establish arbitrary speed limits. In addition, recent CVC amendments allow local agencies to adopt speed limits that help reduce accidents to protect pedestrians and bicyclists, as well as vulnerable groups such as children, seniors, persons with disabilities, etc. The City of Indio recently reduced the speed limits of the following street segments on Indio’s side of the road: Dune Palms Road between Blackhawk Way and Miles Avenue, Avenue 50 between Jefferson Street and Madison Street, and Avenue 52 between Madison Street and Monroe Street. CONSENT CALENDAR ITEM NO. 1 9 In January 2026, the City re-surveyed 6 street segments, which included the ones listed above and some additional ones, and the E&T Survey data recommends the reduced speed limits shown in the table below be adopted, which coincide with Indio’s speed limits for the 3 corresponding street segments: Street Segment Posted Proposed Dune Palms Road Blackhawk Way to Miles Avenue 45 40 Avenue 50 Washington Street to Park Avenue 50 40 Avenue 50 Park Avenue to Jefferson Street 50 45 Avenue 50 Jefferson Street to Madison Street 50 45 Avenue 52 Desert Club Drive to Washington Street 50 40 Avenue 52 Madison Street to Monroe Street 50 45 If adopted on second reading, Ordinance No. 629 will go into effect 30 days after adoption, or on March 19. The reduced speed limits will help drivers maintain a speed that is safe and consistent with the majority of other users. ALTERNATIVES No alternative is recommended. Prepared by: Monika Radeva, City Clerk Approved by: Jon McMillen, City Manager 10 ORDINANCE NO. 629 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DESIGNATING SPEED LIMITS WHEREAS, the California Vehicle Code authorizes cities to designate and regulate speed zones within their jurisdictions; and WHEREAS, the City Council finds it appropriate to designate speed limits on the following 6 local street segments to facilitate safe and orderly traffic flow; and WHEREAS, in accordance with the provisions of Section 12.20.020 of the La Quinta Municipal Code, an engineering and traffic survey has been performed on the specified 6 street segments; and WHEREAS, the following designated prima facie speed limits are based on the results of the 2026 Engineering and Traffic Survey: Street Segment Speed Limit (mph) Dune Palms Road Blackhawk Way to Miles Avenue 40 Avenue 50 Washington Street to Park Avenue 40 Avenue 50 Park Avenue to Jefferson Street 45 Avenue 50 Jefferson Street to Madison Street 45 Avenue 52 Desert Club Drive to Washington Street 40 Avenue 52 Madison Street to Monroe Street 45 NOW, THEREFORE, the City Council of the City of La Quinta does ordain as follows: SECTION 1. FINDINGS AND APPROVAL: That the above recitals are true and correct and constitute the findings of the City Council in this matter, and that the City Council hereby approves and designates the speed limits for the six (6) street segments noted herein pursuant to the 2026 Engineering and Traffic Survey, dated January 26, 2026, enclosed as “Exhibit A” and incorporated herewith by this reference. SECTION 2. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after its adoption. SECTION 3. POSTING: The City Clerk shall, within 15 days after passage of this Ordinance, cause it to be posted in at least three (3) public places designated by resolution of the City Council (Resolution No. 2022-027), shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the permanent record of Ordinances of the City of La Quinta. SECTION 4. CORRECTIVE AMENDMENTS: the City Council does hereby grant the City Clerk the ability to make minor amendments and corrections of typographical or clerical 11 Ordinance No. 629 Speed Limits Designation on Various Street Segments Adopted: February 17, 2026 Page 2 of 3 errors to ensure consistency of all approved text amendments prior to the publication in the La Quinta Municipal Code. SECTION 5. SEVERABILITY: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional. PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this 17th day of February, 2026, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: _________________________ MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 12 Ordinance No. 629 Speed Limits Designation on Various Street Segments Adopted: February 17, 2026 Page 3 of 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LA QUINTA ) I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 629 which was introduced at a regular meeting on the 3rd day of February, 2026, and was adopted by the La Quinta City Council at a regular meeting held on the 17th day of February, 2026, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted on the City’s website and in three places within the City of La Quinta, as specified in the Rules of Procedure adopted by City Council Resolution No. 2022-027. ________________________ MONIKA RADEVA, City Clerk City of La Quinta, California DECLARATION OF POSTING I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on the 18th day of February, 2026, pursuant to Council Resolution. ________________________ MONIKA RADEVA, City Clerk City of La Quinta, California 13 January 26, 2026 Mr. Bryan McKinney, P.E. City Engineer Public Works Department City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Subject: 2026 Engineering and Traffic Survey – Various Streets Dear Mr. McKinney: As requested, Willdan has completed a review of the recommended speed zones on seven various segments in the City of La Quinta. The Engineering and Traffic Study dated January 5, 2017, is hereby amended to include the updated speed limit for the segments listed below that supersede the pervious speed limit recommendations. 63 — Dune Palms — Blackhawk to Miles 64 — Avenue 50 — Washington to Park 65 — Avenue 50 — Park to Jefferson 66 — Avenue 50 — Jefferson to Madison 67 — Avenue 52 — Desert Club to Washington 68 — Avenue 52 — Madison to Monroe We are pleased to submit the enclosed recommendations and supporting documentation for the above segment. The Engineering and Traffic Survey for the above segments were conducted in accordance with applicable provisions of the CVC, following procedures outlined in the California Manual on Uniform Traffic Control Devices (California MUTCD) dated November 2014, and as required by Section 627 of the California Vehicle Code. The Report is intended to satisfy the requirements of Section 40802 of the CVC to enable the continued use of radar for traffic speed enforcement. We appreciate the opportunity to serve the City of La Quinta, and the assistance and cooperation afforded to us during the course of this study. Very truly yours, WILLDAN Nicolle Spann, P.E., T.E. Traffic Engineer Enclosure 2RDINANCE NO. 629 EXHIBIT A ADOPTED: FEBRUARY 17, 2026 14 2026 Engineering and Traffic Survey Amendment City of La Quinta Page 2 Table 1 Street Segments with Recommended Speed Changes NO STREET FROM TO POSTED SPEED LIMIT NEW POSTED SPEED LIMIT CHANGE 63 Dune Palms Rd. Blackhawk Way Miles Avenue 45 40 5 mph reduction 64 Avenue 50 Washington Street Park Avenue 50 40 10 mph reduction 65 Avenue 50 Park Avenue Jefferson Street 50 45 5 mph reduction 66 Avenue 50 Jefferson Street Madison Street 50 45 5 mph reduction 67 Avenue 52 Desert Club Drive Washington Street 50 40 10 mph reduction 68 Avenue 52 Madison Street Monroe Street 50 45 5 mph reduction 15 2026 Engineering and Traffic Survey Amendment City of La Quinta Page 3 Table 2 Speed/Collision Data Summary Table ID Street Segment Dist. (Mi.) Dir. 85% Speed 10 Mi. Pace % in Pace ADT Accident Rate Posted Speed Limit Prop. Speed Limit Justification Exp. Act. 63 Dune Palms Blackhawk to Miles .48 S 44 37-46 78 9,000 1.44 0 45 40 Rounding Down 64 Avenue 50 Washington to Park .60 E/W 50* 40-49 72 7,000 1.44 0.13 50 40 Conditions Not Readily Apparent* 65 Avenue 50 Park to Jefferson .88 E/W 50* 42-51 73 7,000 1.44 0 50 45 Conditions Not Readily Apparent* 66 Avenue 50 Jefferson to Madison 1.0 E 51* 43-52 73 7,000 1.55 0 50 45 Conditions Not Readily Apparent* 67 Avenue 52 Desert Club to Washington .37 E/W 47* 40-49 81 15,000 1.44 0.12 50 40 Conditions Not Readily Apparent* 68 Avenue 52 Madison to Monroe 1.0 E 48 43-52 74 10,000 1.44 0 50 45 Rounding Down * See “Segments with Special Conditions” Section for Comments 16 2026 Engineering and Traffic Survey Amendment City of La Quinta Page 4 SEGMENTS WITH SPECIAL CONDITIONS The following segments surveyed had recommended speed limits that were 5 miles per hour (mph) or more below the critical speed due to conditions not readily apparent to the driver. Each segment is discussed below. Segment 64 – Ave 50: Washington to Park This segment is currently posted at 50 mph and has two through lanes in each direction with an ADT of 7,000 vehicles per day. The adjacent land is vacant (future residential) on both sides just east of Washington. The remaining portion of this segment is residential on the south side and two schools along the north side of this .60-mile-long segment. The 85th percentile speed is 50 mph and would normally justify a 50-mph posted speed limit. This segment is identified as a land or facility that generates high concentrations of bicycles and pedestrians. The segment has bike lane presence along the south side of the corridor. The segment immediately west of Washington is currently 40 mph and because this segment is established as a land or facility that generates high concentrations of bicycles and pedestrians, an additional 10 mph reduction is recommended to be applied. Because this will maintain uniformity among adjacent segments, it is recommended to match that. It is recommended that the speed limit be posted at 40 mph for the above reasons. This recommendation falls within the limitations requiring the recommendation be no more than 12.4 mph under the 85 th percentile speed. Segment 65 – Ave 50: Park to Jefferson This segment is currently posted at 50 mph and has two through lanes in each direction with an ADT of 7,000 vehicles per day. The adjacent land is residential on both of this 0.88-mile-long segment. The 85th percentile speed is 50 mph and would normally justify a 50-mph posted speed limit. However, there are 2 schools immediately adjacent to this portion of Avenue 50. The segment has bike lane presence along both sides of the corridor. The segment immediately west is to be 40 mph and the segment to the east is to be 45 mph. Because this will maintain uniformity among adjacent segments, it is recommended that the speed limit be posted at 45 mph for the above reasons. Segment 66 – Ave 50: Jefferson to Madison This segment is currently posted at 50 mph in the eastbound direction and the westbound direction is posted at 45 mph (within the City of Indio). It has two through lanes in the eastbound direction and one through lane in the westbound direction, with an ADT of 7,000 vehicles per day. The adjacent land is residential on both sides of this 1-mile-long segment, with the exception of some commercial on the north side just east of Jefferson. The 85th percentile speed is 51 mph and would normally justify a 50-mph posted speed limit. This segment is adjacent to a facility that generates high concentrations of 17 2026 Engineering and Traffic Survey Amendment City of La Quinta Page 5 pedestrians during special events (well over 100,000 in attendance) which are in the street due to lack of sidewalks. The segment immediately west of Jefferson is to be 45 mph and this segment already is 45 mph in the westbound direction and an additional 5 mph reduction is recommended to be applied. This will maintain uniformity among adjacent segments with the recommended speed limit being posted at 45 mph for the above reasons. Segment 67 – Avenue 52: Desert Club to Washington This segment is currently posted at 50 mph and has two through lanes in each direction with an ADT of 15,000 vehicles per day. The adjacent land is residential on both sides along the 0.37-mile-long segment. The 85th percentile speed is 47 mph and would normally justify a 45-mph posted speed limit. This segment in the westbound direction has a horizontal 45-mph curve speed just prior to entering a 25-mph zone immediately west of Desert Club, and then a 20-mph design speed upon entering the roundabout at Avenida Bermudas. There is also a very active fire station on the corner of Desert Club and Avenue 52. With the high concentration of bicycles and pedestrians (the segment has bike lane presence along the entire corridor), a 5 mph reduction can be applied. It is recommended to better maintain uniformity among segments that the speed limit be posted at 40 mph for the above reasons. This recommendation falls within the limitations requiring the recommendation be no more than 12.4 mph under the 85 th percentile speed. 18 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Dune Palms Road between Miles Avenue and Blackhawk Way DATE: 1/6/26 TIME: 7:00 a OBSERVER: Steve Libring LOCATION: 63 PART I: HIGHWAY & ROADWAY CHARACTERISTICS Sight Distance Obstructions? (yes or no) S/B N/B Notes 1. Horizontal No No 2. Vertical Yes Yes Crest Vert. Curve 3. Superelevation (%)None None 4. Shoulder Conditions (paved or unpaved)Paved Paved 5. Profile Conditions (grade,%) 6. Commercial Driveway Characteristics (at grade, dustpan, etc) At-Grade At-Grade Driveways on east side at school 7. Pedestrian Traffic in the Roadway without sidewalks (yes or no) No No Sidewalks on both sides 8. Adjacent Land Use (residential, commercial, office, etc) Residential, school, office Residential, school 9. Intersection Spacing and Offsets (spacing, feet-offsets, yes or no) No offsets TS at Westward Ho, Desert Crest, Miles 10. Pavement Condition (good, satisfactory, poor) Satisfactory Satisfactory 11. Truck Traffic (heavy, moderate, light)Light Light 12. Channelization (# of lanes, divided, undivided, painted, or raised median) 2 lanes with bike lane 2 lanes 4 lanes, divided with a painted median 13. Street Width and Alignment (width, feet – straight or curved) 63’ 14. Street Length 1.00 mi 15. Average Daily Traffic 3,461 4,795 8,256 total Collected on 11/03/16 16. Traffic Flow Characteristics (heavy, moderate, light) Light Light 17. Uniformity with the Community (yes or no) Yes Yes 18. Heavy On-Street Parking Turnover (yes or no) No No No parking allowed on both sides 19. Street Lighting No Yes Lighting only on East side from Westward Ho to Miles and at traffic signal locations 19 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Dune Palms Road between Miles Avenue and Blackhawk Way LOCATION: 63 Direction Bi-directional X Northbound * Eastbound * x Southbound * Westbound * PART II: PREVAILING SPEED MEASUREMENT Location of Radar Measurement Desert Stream Date of Radar Measurement 1/6/2026 Time of Radar Measurement (24 hour) 12:55 pm – 1:35 pm 50%ile (mph) 85%ile (mph) 40 44 10 mph Pace (% of Vehicles) 37 – 46 (78%) Average Speed (mph) 40 Number of Samples Observed 100 Posted Limit (mph) 40 45 PART III: ACCIDENT RECORDS Time Period Evaluated 10/1/2022 TO 9/30/2025 Number of Accidents Midblock 0 Midblock Accident Rate (Acc/MVM) Expected-Statewide/Year 1.44 per MVM Actual 0.00 per MVM PART IV: ADDITIONAL REMARKS Rounding Down from 85th Percentile Speed RECOMMENDED SPEED LIMIT 40 MPH * May be used in cases where two or more separate roadways are provided. CERTIFICATION: I, Nicolle Spann, do hereby certify that this Engineering and Traffic Survey within the City of La Quinta was performed under my supervision and is accurate and complete. I am duly registered in the State of California as a Professional Engineer (Traffic). 1/23/2026 TE 2933 Nicolle Spann Date State Registration Number 20 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Avenue 50 between Washington Street and Park Avenue DATE: 1/6/26 TIME: 7:30a OBSERVER: Steve Libring LOCATION: 64 PART I: HIGHWAY & ROADWAY CHARACTERISTICS Sight Distance Obstructions? (yes or no) E/B W/B Notes 1. Horizontal No No 2. Vertical Yes Yes Crest Vert. Curve 3. Superelevation (%) None None 4. Shoulder Conditions (paved or unpaved) Paved Paved ±2000’ of unpaved section on South side 5. Profile Conditions (grade,%) 6. Commercial Driveway Characteristics (at grade, dustpan, etc) None None No driveways 7. Pedestrian Traffic in the Roadway without sidewalks (yes or no) No No No sidewalks present for ±500’ on North and ±2000’ on South 8. Adjacent Land Use (residential, commercial, office, etc) Residential, vacant, 2 schools Residential, vacant, 2 schools 9. Intersection Spacing and Offsets (spacing, feet-offsets, yes or no) No offset No offset TS @ Park & @ Washington 10. Pavement Condition (good, satisfactory, poor) Good Good 11. Truck Traffic (heavy, moderate, light) Light Light 12. Channelization (# of lanes, divided, undivided, painted, or raised median) 2 lanes with bike lane 2 lanes 4 lanes divided by a raised median with bike lane on EB 13. Street Width and Alignment (width, feet – straight or curved) 31’ 31’ 11’ raised median 14. Street Length 1.50 mi 15. Average Daily Traffic 3,399 3,516 6,915 total Collected on 8/31/16 16. Traffic Flow Characteristics (heavy, moderate, light) Light Light 17. Uniformity with the Community (yes or no) Yes Yes 18. Heavy On-Street Parking Turnover (yes or no) No Yes, during school hours No parking allowed on both sides, except by school 19. Street Lighting Only at traffic signal locations Only at traffic signal locations 21 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Avenue 50 between Washington Street and Park Avenue LOCATION: 64 Direction Bi-directional Northbound * Eastbound * Southbound * Westbound * PART II: PREVAILING SPEED MEASUREMENT Location of Radar Measurement midway Date of Radar Measurement 8/5/2025 Time of Radar Measurement (24 hour) 4:00 PM – 4:50 PM 50%ile (mph) 85%ile (mph) 46 50 10 mph Pace (% of Vehicles) 40-49 (72%) Average Speed (mph) 46 Number of Samples Observed 103 Posted Limit (mph) 50 PART III: ACCIDENT RECORDS Time Period Evaluated 10/1/2022 TO 9/30/2025 Number of Accidents Midblock 1 Midblock Accident Rate (Acc/MVM) Expected-Statewide/Year 1.44 per MVM Actual 0.13 per MVM PART IV: ADDITIONAL REMARKS Land or Facility that Generates High Concentrations of Pedestrians and Bicyclists RECOMMENDED SPEED LIMIT 40 MPH * May be used in cases where two or more separate roadways are provided. CERTIFICATION: I, Nicolle Spann, do hereby certify that this Engineering and Traffic Survey within the City of La Quinta was performed under my supervision and is accurate and complete. I am duly registered in the State of California as a Professional Engineer (Traffic). 1/23/2026 TE 2933 Nicolle Spann Date State Registration Number 22 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Avenue 50 between Park Ave and Jefferson Street DATE: 1/6/26 TIME: 6:00a OBSERVER: Steve Libring LOCATION: 65 PART I: HIGHWAY & ROADWAY CHARACTERISTICS Sight Distance Obstructions? (yes or no) E/B W/B Notes 1. Horizontal No No 2. Vertical No No 3. Superelevation (%) None None 4. Shoulder Conditions (paved or unpaved) Paved Paved Buffered bike/cart lanes both sides 5. Profile Conditions (grade,%) 6. Commercial Driveway Characteristics (at grade, dustpan, etc) None None No driveways 7. Pedestrian Traffic in the Roadway without sidewalks (yes or no) No No Sidewalks present both sides 8. Adjacent Land Use (residential, commercial, office, etc) Residential Residential, vacant 9. Intersection Spacing and Offsets (spacing, feet-offsets, yes or no) No offset TS @ Park & @ Jefferson 10. Pavement Condition (good, satisfactory, poor) Good Good 11. Truck Traffic (heavy, moderate, light) Light Light 12. Channelization (# of lanes, divided, undivided, painted, or raised median) 2 lanes with buffered bike/cart lane 2 lanes with buffered bike/cart lane 4 lanes divided by a raised median with bike/cart lanes on both sides 13. Street Width and Alignment (width, feet – straight or curved) 31’ 31’ 11’ raised median 14. Street Length 1.50 mi 15. Average Daily Traffic 3,399 3,516 6,915 total Collected on 8/31/16 16. Traffic Flow Characteristics (heavy, moderate, light) Light Light 17. Uniformity with the Community (yes or no) Yes Yes 18. Heavy On-Street Parking Turnover (yes or no) No Some blockage during school arrival and dismissal No parking allowed on both sides 19. Street Lighting Only at traffic signal locations Only at traffic signal locations 23 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Avenue 50 between Park Ave and Jefferson Street LOCATION: 65 Direction Bi-directional Northbound * Eastbound * Southbound * Westbound * PART II: PREVAILING SPEED MEASUREMENT Location of Radar Measurement midway Date of Radar Measurement 11/22/25 Time of Radar Measurement (24 hour) 2:00 PM – 3:00 PM 50%ile (mph) 85%ile (mph) 46 50 10 mph Pace (% of Vehicles) 42-51 (73%) Average Speed (mph) 45 Number of Samples Observed 121 Posted Limit (mph) 50 PART III: ACCIDENT RECORDS Time Period Evaluated 10/1/2022 TO 9/30/2025 Number of Accidents Midblock 0 Midblock Accident Rate (Acc/MVM) Expected-Statewide/Year 1.44 per MVM Actual 0.00 per MVM PART IV: ADDITIONAL REMARKS To maintain uniformity among adjacent segments, school proximity RECOMMENDED SPEED LIMIT 45 MPH * May be used in cases where two or more separate roadways are provided. CERTIFICATION: I, Nicolle Spann, do hereby certify that this Engineering and Traffic Survey within the City of La Quinta was performed under my supervision and is accurate and complete. I am duly registered in the State of California as a Professional Engineer (Traffic). 1/23/2026 TE 2933 Nicolle Spann Date State Registration Number 24 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Avenue 50 (EB) between Jefferson Street and Madison Street DATE: 1/6/26 TIME: 5:40am OBSERVER: Steve Libring LOCATION: 66 PART I: HIGHWAY & ROADWAY CHARACTERISTICS Sight Distance Obstructions? (yes or no) W/B E/B Notes 1. Horizontal No 2. Vertical Yes Crest Vertical Curve 3. Superelevation (%) None 4. Shoulder Conditions (paved or unpaved) Paved/unpaved Unpaved after Retail Stores 5. Profile Conditions (grade,%) 6. Commercial Driveway Characteristics (at grade, dustpan, etc) Dustpan Driveways on both sides 7. Pedestrian Traffic in the Roadway without sidewalks (yes or no) Yes, pedestrians in roadway during events No sidewalk after retail stores. Horse trail south side. 8. Adjacent Land Use (residential, commercial, office, etc) Residential Retail on W/B by Jefferson St 9. Intersection Spacing and Offsets (spacing, feet-offsets, yes or no) No offset TS @ Jefferson St and @ Madison St 10. Pavement Condition (good, satisfactory, poor) Poor Good on W/B side 11. Truck Traffic (heavy, moderate, light) Light 12. Channelization (# of lanes, divided, undivided, painted, or raised median) 2 lanes divided with painted two way left turn lane and raised median 13. Street Width and Alignment (width, feet – straight or curved) 28’ Street is wide by Jefferson St 14. Traffic Flow Characteristics (heavy, moderate, light) Light 15. Uniformity with the Community (yes or no) Yes 16. Heavy On-Street Parking Turnover (yes or no) No No parking allowed 17. Street Lighting Only at traffic signal locations 25 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Avenue 50 (EB) between Jefferson Street and Madison Street LOCATION: 66 Direction Bi-directional Northbound * X Eastbound * Southbound * Westbound * PART II: PREVAILING SPEED MEASUREMENT Location of Radar Measurement Midway Date of Radar Measurement 1/6/2026 Time of Radar Measurement (24 hour) 12:15 PM to 12:50 PM 50%ile (mph) 85%ile (mph) 47 51 10 mph Pace (% of Vehicles) 43-52 (73%) Average Speed (mph) 47 Number of Samples Observed 100 Posted Limit (mph) 45 (WB) 50 (EB) PART III: ACCIDENT RECORDS Time Period Evaluated 10/1/2022 to 9/30/2025 Number of Accidents Midblock 0 Midblock Accident Rate (Acc/MVM) Expected-Statewide/Year 1.55 per MVM Actual 0.00 per MVM PART IV: ADDITIONAL REMARKS To maintain uniformity among adjacent segments, match City of Indio 45 mph (WB) on Ave 50 RECOMMENDED SPEED LIMIT 45 MPH * May be used in cases where two or more separate roadways are provided. CERTIFICATION: I, Nicolle Spann, do hereby certify that this Engineering and Traffic Survey within the City of La Quinta was performed under my supervision and is accurate and complete. I am duly registered in the State of California as a Professional Engineer (Traffic). 1/23/2026 TE 2933 Nicolle Spann Date State Registration Number 26 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Avenue 52 between Desert Club Drive and Washington Street DATE: 1/6/26 TIME: 6:15a OBSERVER: Steve Libring LOCATION: 67 PART I: HIGHWAY & ROADWAY CHARACTERISTICS Sight Distance Obstructions? (yes or no) W/B E/B Notes 1. Horizontal No No Horizontal Curve 2. Vertical No No 3. Superelevation (%) None None 4. Shoulder Conditions (paved or unpaved) Paved Paved 5. Profile Conditions (grade,%) 6. Commercial Driveway Characteristics (at grade, dustpan, etc) None None 7. Pedestrian Traffic in the Roadway without sidewalks (yes or no) No No Buffered bike /golf cart lanes added 8. Adjacent Land Use (residential, commercial, office, etc) Residential mixed w/ commercial Park/playground and Fire Station 9. Intersection Spacing and Offsets (spacing, feet-offsets, yes or no) No offsets No offsets Signals at Desert Club, Washington 10. Pavement Condition (good, satisfactory, poor) Good Good 11. Truck Traffic (heavy, moderate, light) Light Light 12. Channelization (# of lanes, divided, undivided, painted, or raised median) 2 lanes merging to 1 lane with a bike/golf cart lane 2 lanes with a bike/golf cart lane Bike/golf cart lanes on both sides 13. Street Width and Alignment (width, feet – straight or curved) 32’ 32’ 76’ total w/ 12’ raised median 14. Street Length 0.12 mi 15. Average Daily Traffic 14,736 total Collected in 2014 16. Traffic Flow Characteristics (heavy, moderate, light) Moderate Moderate 17. Uniformity with the Community (yes or no) Yes Yes 18. Heavy On-Street Parking Turnover (yes or no) No No No parking allowed on both sides 19. Street Lighting None except at signal locations None except at signal locations 27 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Avenue 52 between Desert Club Drive and Washington Street LOCATION: 67 Direction Bi-directional Northbound * Eastbound * Southbound * Westbound * PART II: PREVAILING SPEED MEASUREMENT Location of Radar Measurement midblock Date of Radar Measurement 1/6/26 Time of Radar Measurement (24 hour) 8:45 am to 9:30 am 50%ile (mph) 85%ile (mph) 43 47 10 mph Pace (% of Vehicles) 40-49 (81%) Average Speed (mph) 43 Number of Samples Observed 135 Posted Limit (mph) 50 PART III: ACCIDENT RECORDS Time Period Evaluated 10/1/2022 TO 9/30/2025 Number of Accidents Midblock 2 Midblock Accident Rate (Acc/MVM) Expected-Statewide/Year 1.44 per MVM Actual 0.12 per MVM PART IV: ADDITIONAL REMARKS To maintain uniformity among adjacent segments, bike and pedestrian concentration RECOMMENDED SPEED LIMIT 40 MPH * May be used in cases where two or more separate roadways are provided. CERTIFICATION: I, Nicolle Spann, do hereby certify that this Engineering and Traffic Survey within the City of La Quinta was performed under my supervision and is accurate and complete. I am duly registered in the State of California as a Professional Engineer (Traffic). 1/23/2026 TE 2933 Nicolle Spann Date State Registration Number 28 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Avenue 52 (EB) between Madison Street and Monroe Street DATE: 1/6/26 TIME: 5:25a OBSERVER: Steve Libring LOCATION: 68 PART I: HIGHWAY & ROADWAY CHARACTERISTICS Sight Distance Obstructions? (yes or no) E/B W/B Notes 1. Horizontal No No 2. Vertical No No 3. Superelevation (%) None None 4. Shoulder Conditions (paved or unpaved) Paved Un-Paved 5. Profile Conditions (grade,%) 6. Commercial Driveway Characteristics (at grade, dustpan, etc) None At-Grade Driveways on North side 7. Pedestrian Traffic in the Roadway without sidewalks (yes or no) No Yes, during events peds use dirt shoulder Sidewalk on South side only 8. Adjacent Land Use (residential, commercial, office, etc) Residential Residential, Polo Grounds 9. Intersection Spacing and Offsets (spacing, feet-offsets, yes or no) No offset Stops @ Madison St & Monroe St 10. Pavement Condition (good, satisfactory, poor) Very Good Good 11. Truck Traffic (heavy, moderate, light) Light Light 12. Channelization (# of lanes, divided, undivided, painted, or raised median) 2 lanes with a buffered bike/cart lane 2 lanes with no bike lanes 4 lanes divided with raised median and bike lane EB only 13. Street Width and Alignment (width, feet – straight or curved) 33’ 27’ 15’ raised median, bike/cart lane on E/B side only 14. Street Length 1.00 mi 15. Average Daily Traffic 5,272 4,725 9,997 Total Collected on 10/19/16 16. Traffic Flow Characteristics (heavy, moderate, light) Light Light 17. Uniformity with the Community (yes or no) Yes Yes 18. Heavy On-Street Parking Turnover (yes or no) No No No parking on bike lane posted 19. Street Lighting None except at Madison signal None, except at Madison signal none 29 CITY OF LA QUINTA ENGINEERING & TRAFFIC SURVEY STREET: Avenue 52 (EB) between Madison Street and Monroe Street LOCATION: 68 Direction Bi-directional Northbound * x Eastbound * Southbound * X Westbound * PART II: PREVAILING SPEED MEASUREMENT Location of Radar Measurement Meriweather Date of Radar Measurement 1/6/26 Time of Radar Measurement (24 hour) 11:15 AM to Noon 50%ile (mph) 85%ile (mph) 48 52 10 mph Pace (% of Vehicles) 43-52 (74%) Average Speed (mph) 48 Number of Samples Observed 101 Posted Limit (mph) 50 45 PART III: ACCIDENT RECORDS Time Period Evaluated 10/1/2022 - 9/30/2025 Number of Accidents Midblock 0 Midblock Accident Rate (Acc/MVM) Expected-Statewide/Year 1.44 per MVM Actual 0.00 per MVM PART IV: ADDITIONAL REMARKS Rounding Down RECOMMENDED SPEED LIMIT 45 MPH * May be used in cases where two or more separate roadways are provided. CERTIFICATION: I, Nicolle Spann, do hereby certify that this Engineering and Traffic Survey within the City of La Quinta was performed under my supervision and is accurate and complete. I am duly registered in the State of California as a Professional Engineer (Traffic). 1/23/2026 TE 2933 Nicolle Spann Date State Registration Number 30 DATE:01/06/26 DAY:Tuseday TIME PERIOD:12:55pm 1:35pm FOR ROADWAY: SPEED TOTAL VEHICLES SURVEYED TOTAL (MPH)NORTHBOUND+SOUTHBOUND NB SB VEHICLES LIMITS (BTN): Miles and Blackhawk 65 0 0 0 64 0 0 0 OBSERVATION POINT:Desert Stream 63 0 0 0 62 0 0 0 61 0 0 0 POSTED SPEED LIMIT:45 MPH OBSERVER: 60 0 0 0 59 0 0 0 COMMENTS:WEATHER: 58 0 0 0 57 0 0 0 ROAD SURFACE: 56 0 0 0 55 0 0 0 ROAD CONDITION: 54 X 0 1 1 53 X 0 1 1 DATA COLLECTION METHOD: 52 0 0 0 51 X 0 1 1 50 0 0 0 49 X 0 1 1 48 X X 0 2 2 47 0 0 0 46 X 0 1 1 45 X X X X 0 4 4 44 X X X X X 0 5 5 43 X X X X X X 0 6 6 NORTHBOUND SOUTHBOUND NORTHBOUND+SOUTHBOUND 42 X X X X X X X X X X X X X X X X 0 16 16 41 X X X X X X X X X X X X 0 12 12 40 X X X X X X X X X X X X X X X 0 15 15 85TH %:N/A 44 44 M.P.H. 39 X X X X X X X X 0 8 8 38 X X X X X X 0 6 6 50TH %:N/A 40 40 M.P.H. 37 X X X X X 0 5 5 36 X 0 1 1 15TH %:N/A 35 35 M.P.H. 35 X X X X 0 4 4 * 34 X X 0 2 2 *10 MPH PACE:N/A 37 - 46 37 - 46 M.P.H. 33 X X X 0 3 3 * 32 X 0 1 1 P % IN PACE:N/A 78%78% 31 X X X X 0 4 4 A 30 0 0 0 C % OVER PACE:N/A 6%6% 29 X 0 1 1 E 28 0 0 0 *% UNDER PACE:N/A 16%16% 27 0 0 0 * 26 0 0 0 *ARITHMETIC MEAN:N/A 40 40 M.P.H. 25 0 0 0 24 0 0 0 SAMPLE VARIANCE:N/A 20 20 23 0 0 0 22 0 0 0 STANDARD DEVIATION:N/A 4 4 M.P.H. 21 0 0 0 20 0 0 0 VARIANCE OF THE MEAN:N/A 0.20 0.20 19 0 0 0 18 0 0 0 STD. ERROR OF THE MEAN:N/A 0.44 0.44 M.P.H. 17 0 0 0 16 0 0 0 15 0 0 0 0 100 100 DUNE PALMS RADAR CITY OF LA QUINTA Libring Cloudy Dry Good TO W:\WE-CA\La Quinta, City of\113657 - La Quointa E&T Surveys 2024\E&T Update- January 2026\Data & Field Sheets\Radar\Dune Palms - Miles to Blackhawk 31 DATE:08/05/25 DAY:Tuesday TIME PERIOD:4:00 PM 4:50 PM FOR ROADWAY: SPEED TOTAL VEHICLES SURVEYED TOTAL (MPH)EASTBOUND+WESTBOUND WB EB VEHICLES LIMITS (BTN): Washington and Park 65 0 0 0 64 0 0 0 OBSERVATION POINT:At flood control channel 63 0 0 0 62 0 0 0 61 0 0 0 POSTED SPEED LIMIT:50 MPH OBSERVER: 60 0 0 0 59 X 1 0 1 COMMENTS:new speed limit WEATHER: 58 X X 1 1 2 57 0 0 0 ROAD SURFACE: 56 0 0 0 55 0 0 0 ROAD CONDITION: 54 X 0 1 1 53 X X X X 2 2 4 DATA COLLECTION METHOD: 52 X X X 2 1 3 51 X X X X 0 4 4 50 X X X X X 5 0 5 49 X X X X X X X X 3 5 8 48 X X X X X X 3 3 6 47 X X X X X X 2 4 6 46 X X X X X X X X X X X X X 7 6 13 45 X X X X X X X X X X X 7 4 11 44 X X X X X X X 2 5 7 43 X X X X X X X 3 4 7 EASTBOUND WESTBOUND EASTBOUND+WESTBOUND 42 X X X X X 2 3 5 41 X X X X 3 1 4 40 X X X X X X X 4 3 7 85TH %:50 51 50 M.P.H. 39 X X X X 1 3 4 38 X X X 2 1 3 50TH %:45 46 46 M.P.H. 37 X 1 0 1 36 X 1 0 1 15TH %:40 41 40 M.P.H. 35 0 0 0 * 34 0 0 0 *10 MPH PACE:41 - 50 42 - 51 40 - 49 M.P.H. 33 0 0 0 * 32 0 0 0 P % IN PACE:71%75%72% 31 0 0 0 A 30 0 0 0 C % OVER PACE:12%10%19% 29 0 0 0 E 28 0 0 0 *% UNDER PACE:17%16%9% 27 0 0 0 * 26 0 0 0 *ARITHMETIC MEAN:46 46 46 M.P.H. 25 0 0 0 24 0 0 0 SAMPLE VARIANCE:24 19 22 23 0 0 0 22 0 0 0 STANDARD DEVIATION:5 4 5 M.P.H. 21 0 0 0 20 0 0 0 VARIANCE OF THE MEAN:0.47 0.37 0.21 19 0 0 0 18 0 0 0 STD. ERROR OF THE MEAN:0.69 0.61 0.46 M.P.H. 17 0 0 0 16 0 0 0 15 0 0 0 52 51 103 Avenue 50 RADAR CITY OF LA QUINTA LIBRING CLEAR, SUNNY DRY GOOD TO W:\WE-CA\La Quinta, City of\113657 - La Quointa E&T Surveys 2024\E&T Update- January 2026\Data & Field Sheets\Radar\- Ave 50 - Washington to Park 32 DATE:11/22/25 DAY:Saturday TIME PERIOD:2pm 3pm FOR ROADWAY: SPEED TOTAL VEHICLES SURVEYED TOTAL (MPH)EASTBOUND+WESTBOUND EB WB VEHICLES LIMITS (BTN): Park to Jefferson 65 X 0 1 1 64 0 0 0 OBSERVATION POINT:Midway 63 0 0 0 62 0 0 0 61 0 0 0 POSTED SPEED LIMIT:50 MPH OBSERVER: 60 0 0 0 59 0 0 0 COMMENTS:WEATHER: 58 X 1 0 1 57 X 1 0 1 ROAD SURFACE: 56 0 0 0 55 X 0 1 1 ROAD CONDITION: 54 0 0 0 53 X 1 0 1 DATA COLLECTION METHOD: 52 X X X 2 1 3 51 X X X X X X X 5 2 7 50 X X X X X 3 2 5 49 X X X X X X X X X X X X X X X 8 7 15 48 X X X X X X X X X 4 5 9 47 X X X X X X X X 5 3 8 46 X X X X X X X X X X X 7 4 11 45 X X X X X X X X X X X X 5 7 12 44 X X X X X X 3 3 6 43 X X X X X X X X 3 5 8 EASTBOUND WESTBOUND EASTBOUND+WESTBOUND 42 X X X X X X X 3 4 7 41 X X X X X X 3 3 6 40 X X X X X 2 3 5 85TH %:51 49 50 M.P.H. 39 X 0 1 1 38 X X X X 0 4 4 50TH %:46 45 46 M.P.H. 37 X 0 1 1 36 X 0 1 1 15TH %:41 40 40 M.P.H. 35 0 0 0 * 34 X X X X X 5 0 5 *10 MPH PACE:42 - 51 40 - 49 42 - 51 M.P.H. 33 0 0 0 * 32 0 0 0 P % IN PACE:74%75%73% 31 0 0 0 A 30 X 0 1 1 C % OVER PACE:8%12%7% 29 0 0 0 E 28 0 0 0 *% UNDER PACE:18%14%21% 27 X 1 0 1 * 26 0 0 0 *ARITHMETIC MEAN:46 45 45 M.P.H. 25 0 0 0 24 0 0 0 SAMPLE VARIANCE:32 28 30 23 0 0 0 22 0 0 0 STANDARD DEVIATION:6 5 5 M.P.H. 21 0 0 0 20 0 0 0 VARIANCE OF THE MEAN:0.52 0.48 0.25 19 0 0 0 18 0 0 0 STD. ERROR OF THE MEAN:0.72 0.70 0.50 M.P.H. 17 0 0 0 16 0 0 0 15 0 0 0 62 59 121 RADAR CITY OF LA QUINTA Libring Cloudy Dry Good TO AVENUE 50 W:\WE-CA\La Quinta, City of\113657 - La Quointa E&T Surveys 2024\E&T Update- January 2026\Data & Field Sheets\Radar\Ave 50 speed survey - Park to Jefferson 33 DATE:01/06/26 DAY:Tuseday TIME PERIOD:12:15pm 12:50pm FOR ROADWAY: SPEED TOTAL VEHICLES SURVEYED TOTAL (MPH)EASTBOUND+WESTBOUND EB WB VEHICLES LIMITS (BTN): Jefferson to Madison 65 0 0 0 64 0 0 0 OBSERVATION POINT:Midway 63 0 0 0 62 0 0 0 61 X 1 0 1 POSTED SPEED LIMIT:50 MPH OBSERVER: 60 0 0 0 59 X 1 0 1 COMMENTS:WEATHER: 58 X 1 0 1 57 0 0 0 ROAD SURFACE: 56 X 1 0 1 55 X 1 0 1 ROAD CONDITION: 54 X X 2 0 2 53 X X 2 0 2 DATA COLLECTION METHOD: 52 X X X X X X 6 0 6 51 X X X X X X X 7 0 7 50 X X X X X X 6 0 6 49 X X X X X X X 7 0 7 48 X X X X X X X X X X 10 0 10 47 X X X X X X 6 0 6 46 X X X X X X X X X X X 11 0 11 45 X X X X X X X X X X 10 0 10 44 X X X X X 5 0 5 43 X X X X X 5 0 5 EASTBOUND WESTBOUND EASTBOUND+WESTBOUND 42 X X X X X 5 0 5 41 X X X X 4 0 4 40 X X X X 4 0 4 85TH %:51 N/A 51 M.P.H. 39 X X 2 0 2 38 X X 2 0 2 50TH %:47 N/A 47 M.P.H. 37 0 0 0 36 0 0 0 15TH %:42 N/A 42 M.P.H. 35 0 0 0 * 34 0 0 0 *10 MPH PACE:43 - 52 N/A 43 - 52 M.P.H. 33 0 0 0 * 32 0 0 0 P % IN PACE:73%N/A 73% 31 0 0 0 A 30 X 1 0 1 C % OVER PACE:9%N/A 9% 29 0 0 0 E 28 0 0 0 *% UNDER PACE:18%N/A 18% 27 0 0 0 * 26 0 0 0 *ARITHMETIC MEAN:47 N/A 47 M.P.H. 25 0 0 0 24 0 0 0 SAMPLE VARIANCE:24 N/A 24 23 0 0 0 22 0 0 0 STANDARD DEVIATION:5 N/A 5 M.P.H. 21 0 0 0 20 0 0 0 VARIANCE OF THE MEAN:0.24 N/A 0.24 19 0 0 0 18 0 0 0 STD. ERROR OF THE MEAN:0.49 N/A 0.49 M.P.H. 17 0 0 0 16 0 0 0 15 0 0 0 100 0 100 RADAR CITY OF LA QUINTA Libring Cloudy Dry Good TO AVENUE 50 W:\WE-CA\La Quinta, City of\113657 - La Quointa E&T Surveys 2024\E&T Update- January 2026\Data & Field Sheets\Radar\Ave 50 - Jefferson to Madison 34 DATE:01/06/26 DAY:Tuesday TIME PERIOD:8:45 AM 9:30 AM FOR ROADWAY: SPEED TOTAL VEHICLES SURVEYED TOTAL (MPH)EASTBOUND+WESTBOUND EB WB VEHICLES LIMITS (BTN):Desert Club and Washington 65 0 0 0 64 0 0 0 OBSERVATION POINT:Midway 63 0 0 0 62 0 0 0 61 0 0 0 POSTED SPEED LIMIT:50 MPH OBSERVER: 60 0 0 0 59 0 0 0 COMMENTS:WEATHER: 58 0 0 0 57 0 0 0 ROAD SURFACE: 56 0 0 0 55 0 0 0 ROAD CONDITION: 54 X 0 1 1 53 0 0 0 DATA COLLECTION METHOD: 52 X X 2 0 2 51 X X 1 1 2 50 X X X 1 2 3 49 X X X X X X 5 1 6 48 X X X X 2 2 4 47 X X X X X X X X 2 6 8 46 X X X X X X X X X X X 7 4 11 45 X X X X X X X X X X X X X X 8 6 14 44 X X X X X X X X X X 5 5 10 43 X X X X X X X X X X X X X X X 7 8 15 EASTBOUND WESTBOUND EASTBOUND+WESTBOUND 42 X X X X X X X X X X X X X X X X X 10 7 17 41 X X X X X X X X X X X X X 6 7 13 40 X X X X X X X X X X X X 5 7 12 85TH %:48 47 47 M.P.H. 39 X X X 1 2 3 38 X X X X X X 4 2 6 50TH %:43 43 43 M.P.H. 37 X X X 2 1 3 36 X 0 1 1 15TH %:40 40 40 M.P.H. 35 X X X 1 2 3 * 34 0 0 0 *10 MPH PACE:40 - 49 39 - 48 40 - 49 M.P.H. 33 0 0 0 * 32 X 0 1 1 P % IN PACE:83%82%81% 31 0 0 0 A 30 0 0 0 C % OVER PACE:6%8%6% 29 0 0 0 E 28 0 0 0 *% UNDER PACE:12%11%13% 27 0 0 0 * 26 0 0 0 *ARITHMETIC MEAN:44 43 43 M.P.H. 25 0 0 0 24 0 0 0 SAMPLE VARIANCE:14 16 15 23 0 0 0 22 0 0 0 STANDARD DEVIATION:4 4 4 M.P.H. 21 0 0 0 20 0 0 0 VARIANCE OF THE MEAN:0.20 0.24 0.11 19 0 0 0 18 0 0 0 STD. ERROR OF THE MEAN:0.45 0.49 0.33 M.P.H. 17 0 0 0 16 0 0 0 15 0 0 0 69 66 135 RADAR CITY OF LA QUINTA LIBRING CLEAR, SUNNY DRY GOOD TO Avenue 52 W:\WE-CA\La Quinta, City of\113657 - La Quointa E&T Surveys 2024\E&T Update- January 2026\Data & Field Sheets\Radar\Ave 52 between Desert Club and Washington 35 DATE:01/06/26 DAY:Tuseday TIME PERIOD:11:15 AM Noon FOR ROADWAY: SPEED TOTAL VEHICLES SURVEYED TOTAL (MPH)EASTBOUND+WESTBOUND EB WB VEHICLES LIMITS (BTN):Madison to Monroe 65 X 1 0 1 64 0 0 0 OBSERVATION POINT:Meriwether 63 X 1 0 1 62 0 0 0 61 X 1 0 1 POSTED SPEED LIMIT:50 MPH OBSERVER: 60 0 0 0 59 0 0 0 COMMENTS:WEATHER: 58 X X 2 0 2 57 0 0 0 ROAD SURFACE: 56 X 1 0 1 55 0 0 0 ROAD CONDITION: 54 X X X 3 0 3 53 X X X 3 0 3 DATA COLLECTION METHOD: 52 X X X X X X X 7 0 7 51 X X X X X X 6 0 6 50 X X X X X X X X 8 0 8 49 X X X X X X X X X X X X X X 14 0 14 48 X X X X X X X X 8 0 8 47 X X X X X X X X X 9 0 9 46 X X X X X X X X 8 0 8 45 X X X X X X X 7 0 7 44 X X X 3 0 3 43 X X X X X 5 0 5 EASTBOUND WESTBOUND EASTBOUND+WESTBOUND 42 X X 2 0 2 41 X 1 0 1 40 X X X 3 0 3 85TH %:52 N/A 52 M.P.H. 39 X X 2 0 2 38 X X 2 0 2 50TH %:48 N/A 48 M.P.H. 37 X X 2 0 2 36 X 1 0 1 15TH %:43 N/A 43 M.P.H. 35 X 1 0 1 * 34 0 0 0 *10 MPH PACE:43 - 52 N/A 43 - 52 M.P.H. 33 0 0 0 * 32 0 0 0 P % IN PACE:74%N/A 74% 31 0 0 0 A 30 0 0 0 C % OVER PACE:12%N/A 12% 29 0 0 0 E 28 0 0 0 *% UNDER PACE:14%N/A 14% 27 0 0 0 * 26 0 0 0 *ARITHMETIC MEAN:48 N/A 48 M.P.H. 25 0 0 0 24 0 0 0 SAMPLE VARIANCE:28 N/A 28 23 0 0 0 22 0 0 0 STANDARD DEVIATION:5 N/A 5 M.P.H. 21 0 0 0 20 0 0 0 VARIANCE OF THE MEAN:0.28 N/A 0.28 19 0 0 0 18 0 0 0 STD. ERROR OF THE MEAN:0.53 N/A 0.53 M.P.H. 17 0 0 0 16 0 0 0 15 0 0 0 101 0 101 RADAR CITY OF LA QUINTA Libring Cloudy Dry Good TO AVENUE 52 W:\WE-CA\La Quinta, City of\113657 - La Quointa E&T Surveys 2024\E&T Update- January 2026\Data & Field Sheets\Radar\Ave 52 - Madison to Monroe 36 City of La Quinta CITY COUNCIL MEETING: February 17, 2026 STAFF REPORT AGENDA TITLE: ACCEPT ON-SITE IMPROVEMENTS ASSOCIATED WITH THE GRIFFIN RANCH RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 32879, LOCATED AT THE SOUTHEAST CORNER OF AVENUE 54 AND MADISON STREET RECOMMENDATION Accept the on-site improvements associated with Tract Map No. 32879, Griffin Ranch; and authorize staff to release performance security. EXECUTIVE SUMMARY Griffin Ranch is a residential development project located at the southeast corner of Avenue 54 and Madison Street (Attachment 1). Lennar Homes of California, Inc. (Developer) has requested release of the performance security. Staff has verified satisfactory completion of the on-site improvements and recommends acceptance, and release of the performance security. FISCAL IMPACT – None. BACKGROUND/ANALYSIS All on-site improvements required by Tract Map No. 32879 have been completed. The improvements include grading, pavement, curb and gutter, storm drain, driveways, water, sewer, dry utilities, fencing, walls, and landscaping. Staff inspected the on-site improvements and verified they meet City-approved plans and standards. ALTERNATIVES Accepting improvements is a ministerial action necessary for the release of the improvement securities. Since the improvements have been inspected and meet City standards, staff does not recommend an alternative action. Prepared by: Amy Yu, Associate Engineer Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map CONSENT CALENDAR ITEM NO. 2 37 V I C I N I T Y M A P NOT TO SCALE TM 32879 GRIFFIN RANCH ATTACHMENT 1 38 City of La Quinta CITY COUNCIL MEETING: February 17, 2026 STAFF REPORT AGENDA TITLE: AUTHORIZE THE PUBLIC WORKS DEPARTMENT TO UTILIZE SOUTHWEST BOULDER AND STONE TO PURCHASE UP TO $100,000 OF MATERIALS FOR FISCAL YEAR 2025/26 RECOMMENDATION Authorize the Public Works Department to utilize Southwest Boulder and Stone to purchase up to $100,000 of materials in fiscal year 2025/26. EXECUTIVE SUMMARY Per the City’s Purchasing and Contracting policy (Policy), amounts paid to vendors/contractors over $50,000 must be approved by Council. Staff requests authority to utilize Southwest Boulder and Stone (SWB) to purchase up to $100,000 of materials during fiscal year (FY) 2025/26. FISCAL IMPACT The $100,000 would be charged in increments, as needed, to the appropriate account(s) should Council approve this request. Funds for purchases are budgeted in the Lighting and Landscape (215-7004-60431) and Parks (101-3005-60431) materials/supplies accounts. BACKGROUND/ANALYSIS In FY 2025/26, the City purchased materials in excess of $47,000 from SWB, the Policy requires Council approval for purchases and/or contracts over $50,000. The City frequently purchases hardscape materials including boulders, gravel, crushed stone, and playground safety fill from SWB. Staff will continue to compare prices and material selections to obtain the best value and quality materials. Hardscape materials are used in landscape renovations in center medians, parkways, and parks. The City recently added safety fill to all playgrounds. This spending authority would allow maintenance projects in City medians, parkways, and parks to continue without interruptions to scheduled work. ALTERNATIVES Council may direct staff to seek separate approvals from Council for any future purchases from SWB on a per project basis. However, this approach would delay work. Prepared by: Dianne Hansen, Maintenance and Operation Superintendent Approved by: Tony Ulloa, Public Works Deputy Director CONSENT CALENDAR ITEM NO. 3 39 40 City of La Quinta CITY COUNCIL MEETING: February 17, 2026 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH NV5, INC TO PROVIDE ADDITIONAL DESIGN SERVICES FOR THE WASHINGTON STREET SIDEWALK IMPROVEMENTS PROJECT NO. 2023-03 AND AVENUE 50 SIDEWALK IMPROVEMENTS PROJECT NO. 2024-01 RECOMMENDATION Approve Amendment No. 2 to the Agreement for Contract Services with NV5, Inc. to provide additional design services for the Washington Street Sidewalk Improvements Project No. 2023-03 and Avenue 50 Sidewalk Improvements Project No. 2024-01; and authorize the City Manager to execute the amendment. EXECUTIVE SUMMARY The projects are located along the east side of Washington Street from Avenue 50 to Calle Tampico and along the north side of Avenue 50 from Washington Street to Avenida Montero (Projects) (Attachment 1) and are currently in design. On April 1, 2025, Council approved an Agreement for Contract Services (Agreement) with NV5, Inc. (NV5) to provide professional design services for the Projects. The proposed Amendment No. 2 (Attachment 2) to the Agreement includes additional landscape and irrigation design services for an additional not-to-exceed amount of $33,782 billed on a time-and-materials basis. FISCAL IMPACT The total Projects budgets remain the same as allocated in fiscal years 2023/24 and 2024/25 Capital Improvement Program (CIP) in the amount of $478,000 in SB 1 Road Maintenance/Rehabilitation Funds and $400,000 in Measure A Funds. Funds are available in the Projects budgets (401-0000-60185-202303-D) – contingency funds of $8,000 will be allocated to the design category for the additional landscape and irrigation design services under the proposed Amendment No. 2 in the amount of $33,782, for a total not to exceed Agreement amount of $150,172. CONSENT CALENDAR ITEM NO. 4 41 The following are the updated Projects budgets: Avenue 50 2024-01 Project Budget Washington Street 2023-03 Project Budget Professional $ 24,000 $ 47,800 Design $ 34,000 $ 123,000 Inspection/Testing/Survey $ 27,000 $ 32,265 Construction $ 280,000 $ 254,035 Contingency $ 35,000 $ 20,900 TOTAL: $ 400,000 $ 478,000 BACKGROUND/ANALYSIS The Projects will construct a 5-foot curb-adjacent sidewalk along Avenue 50 from Washington Street to the pedestrian gate at Avenida Montero and along Washington Street from Calle Tampico to the evacuation channel bridge that meanders to accommodate existing utilities and palm trees. It will also replace the curb ramp at the Village Shopping Center for Americans with Disabilities Act (ADA) compliance, improve pedestrian access and address issues with the retaining wall and garden wall located in both sections and modify the existing landscape and irrigation to incorporate the sidewalk and retaining wall. In April 2025, Council approved an Agreement with NV5 to provide design services for the Projects, following the competitive request for proposals procurement process issued in January 2025. The Agreement was set to expire December 31, 2025. Amendment No. 1 was executed in December 2025, extending the Agreement term to December 31, 2026. The proposed Amendment No. 2, if approved, will amend the scope of work to include additional project management and landscaping and irrigation design services for the Projects, and respectively increase the compensation by $33,782, for a total not to exceed Agreement amount of $150,172. ALTERNATIVES Council may elect to amend or not approve Amendment No. 2. Prepared by: Carley Escarrega, Administrative Technician Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachments: 1. Vicinity Map 2. Amendment No. 2 to Agreement for Contract Services 42 *IMPORTANT* Maps and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user. © Riverside County GIS Legend Notes REPORT PRINTED ON...3/20/2025 4:36:32 PM WASHINGTON ST & AVENUE 50 SIDEWALK IMPROVEMENTS LOCATION MAP 0 2,000 4,000 Feet City Boundaries World_Street_Map 43 AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH NV5, INC. This Amendment No. 2 (“Amendment 2”) to Agreement for Contract Services ("Agreement”) is made and entered into as of the 17th day of February, 2026, ("Effective Date") by and between the City of La Quinta ("City"), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and NV5, Inc. (“Contracting Party”). RECITALS WHEREAS, on or about March 24, 2025, the City and Contracting Party entered into an Agreement to provide those services related to design and related professional services for the Washington Street Sidewalk Improvements Project No. 2023-03 and Avenue 50 Sidewalk Improvements Project No. 2024-01, for a total not to exceed amount of $116,390. The initial term of the Agreement expired on December 31, 2025 (“Initial Term”); and WHEREAS, on or about December 31, 2025, the City and Contracting Party mutually agreed to amend Section 3.4 Term to extend the term of the Agreement for one additional, from January 1, 2026, through December 31, 2026 (“Extended Term”); and WHEREAS, the City and Contracting Party mutually agree to amend Section 1.1 Scope of Services, of the Agreement to provide additional project management and landscaping and irrigation design services for both projects as identified in Exhibit A of this Amendment, and Section 2.1, Contract Sum, of the Agreement to increase the compensation by $33,782, for a total not to exceed amount of $150,172, as identified in Exhibit B of this Amendment. NOW THEREFORE, in consideration of the mutual covenant herein contained, the parties agree as follows: AMENDMENT In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 1. Section 1.1 is amended to read as follows: Section 1.1 – Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to design and related professional services for the Washington Street Sidewalk Improvements Project No. 2023-03 and Avenue 50 Sidewalk Improvements Project No. 2024-01, and additional landscaping and irrigation design services, as detailed in “Exhibit A” attached hereto and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow ATTACHMENT 2 44 industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances. 2. “Exhibit A” – Scope of Services is amended to include the additional services detailed in Exhibit A, attached to this Amendment No. 2, and incorporated herein by this reference. 3. Section 2.1 is amended to read as follows: Section 2.1 – Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the Schedule of Compensation”) in a total amount not to exceed One Hundred Fifty Thousand One Hundred Seventy-Two Dollars ($150,172), for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement. 4. “Exhibit B” – Schedule of Compensation is amended as listed in “Exhibit B,” attached hereto and incorporated herein by this reference. In all other respects, the original Agreement shall remain in effect. 45 IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 2 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA NV5, Inc. a California municipal corporation ____ _______________________ JON McMILLEN, City Manager Jefrey M. Cooper, PE City of La Quinta, California EVP, Chief Operating Officer Dated: ___________________ Dated: ______________ ATTEST: MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: ___ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 46 Exhibit A Scope of Services 47 48 Exhibit B Contract Sum With the exception of compensation for Additional Services, provided for in Section 2.3 of this Agreement, the maximum total compensation to be paid to Contracting Party under this Agreement is not to exceed One Hundred Fifty Thousand One Hundred Seventy-Two Dollars ($150,172) (the “Contract Sum”), comprised of $116,390 for design and professional services as detailed in Exhibit B of the Agreement, and $33,782 for additional design services as detailed in this Exhibit B to this Amendment No. 2. The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of the Agreement. Compensation for additional services identified in Exhibit A: 49 50 Project Name:Avenue 50 LS Improvements - Base Bid Project Number:- Client/Owner:City of La Quinta Project Manager:Andrea Thomas, PE Prepared By:Mike Smyth Proj/Prop No.:- Date:January 15, 2026 ITEM TOTAL Labor $32,334 Outside Services $66 Direct Costs $0 TOTAL $32,400 $85 $141 $80 $166 $100 $183 $105 $193 $120 $198 $125 $150 $155 $170 $185 $147 $335 $125 $335 $136 $190 $160 $175 $240 $220 EXPENSES: $200 1.10 x Cost $275 1.10 x Cost $180 $166 $119 1.10 x Cost $400 1.10 x Cost $20 $35 $400 $20 $35 1.10 x Cost Per Accepted IRS Rate Field Superviosr - FS SURVEYING: 1.10 x Cost Per Accepted IRS Rate Courier - Next Day - PSCN Milage - Outside Local Area - EMIL Subsistence - ESUB Plotting and In-House Reproduction - EPHP Senior Landscaper - SLA Landscape Architect - LA Project Manager - OSSTP Senior Project Manager - OSMP Design Supervisor - OSDS Senior CADD Technician/Designer - OSSCT Principal - OSPP Associate - OSAP Engineering Aid/Planning Aid - OSEPA TECHNICAL SERVICE: OFFICE SERVICES: CADD Technician III - OSCT3 Junior Field Engineer - FSJFE Assistant Field Engineer - FSTFE Associate Field Engineer - FSEFE Senior Field Engineer - FSSFECADD Technician I - OSCT1 Project Administrator - OSPAD Project Assistant - OSPA Other Expenses-Including Subconsultants & Purchased Services Through Subcontracts - EOTH Milage - Outside Local Area - EMIL Courier - Same Day - PSCS Courier - Next Day - PSCN Litigation Support - ELIT LABOR ESTIMATE FEE SUMMARY BASIC BILLING RATES FIELD SERVICES: CONSTRUCTION MANAGEMENT: CA Office: 15092 Avenue of Science #200, San Diego, CA 92128 Construction Manager - FSCM Survey Manager - FSSM 3-Person Survey Crew - FS3P 2-Person Survey Crew - FS2P 1-Person Survey Crew - FS1P 1-Person Survey Crew (GPS)(Robotic) - FS1R Associate Engineer/Planner/Surveyor - OSEEP Assistant Engineer/Planner/Surveyor - OSTSP Senior Engineer/Planner/Surveyor - OSSP CADD Technician II - OSCT2 Junior Engineer/Planner/Surveyor - OSJP PROFESSIONAL: Landscape Designer - LD EXPENSES: Plotting and In-House Reproduction - EPHP Subsistence - ESUB Litigation Support - ELIT Courier - Same Day - PSCS Other Expenses-Including Subconsultants & Purchased Services Through Subcontracts - EOTH 51 Page 1 of 1 Phase Task Task/Sub - - - - SLA LA LD - OSSTP OSSCT - - HOURS FEE % - - -- - - - - - - - - 1.00 90% LS PS&E Review Reference Materials and Engineering Documents 2 2 6 10 $1,406 4.34% Prepare 90% Planting and Irrigation Plans 6 16 54 76 $10,162 31.36% Prepare 90% LS SP's and Opinion of Probable Const Costs 6 4 6 16 $2,458 7.59% Design Team Coordination and Quality Control 2 2 4 $692 2.14% subtotal 106 $14,718 99% LS PS&E Prepare 99% Planting and Irrigation Plans 4 8 24 36 $4,904 15.14% Prepare 99% LS Special Provisions 4 2 4 10 $1,528 4.72% Prepare 99% LS Opinion of Probable Const Costs 2 1 4 7 $1,002 3.09% Design Team Coordination and Quality Control 1 1 2 $346 1.07% subtotal 55 $7,780 Final (100%) Signed LS PS&E Prepare Final Planting and Irrigation Plans 2 4 8 14 $1,976 6.10% Prepare Final LS Special Provisions 2 2 2 6 $930 2.87% Prepare Final LS Opinion of Probable Const Costs 2 1 2 5 $764 2.36% Design Team Coordination and Quality Control 1 1 2 $346 1.07% subtotal 27 $4,016 Reimbursable Expenses 0 $66 0.20% subtotal 0 $66 2.00 Project Management 18 12 30 $5,820 17.96% Subtotal 30 $5,820 End of Task - - - - SLA LA LD - OSSTP OSSCT - - 0 0 0 0 34 44 110 0 18 12 0 0 218 $32,400 100.00% 0 0 0 0 34 44 110 0 18 12 0 0 218 $32,400 100.00% TASK DESCRIPTION LABOR CODE/STAFF HOURS TOTALS PAGE TOTALS TOTAL - THIS PAGE TOTAL - ALL PAGES 52 Project Name:Avenue 50 LS Improvements - Add Alt Project Number:- Client/Owner:City of La Quinta Project Manager:Andrea Thomas, PE Prepared By:Mike Smyth Proj/Prop No.:- Date:January 15, 2026 ITEM TOTAL Labor $33,712 Outside Services $70 Direct Costs $0 TOTAL $33,782 $85 $141 $80 $166 $100 $183 $105 $193 $120 $198 $125 $150 $155 $170 $185 $147 $335 $125 $335 $136 $190 $160 $175 $240 $220 EXPENSES: $200 1.10 x Cost $275 1.10 x Cost $180 $166 $119 1.10 x Cost $400 1.10 x Cost $20 $35 $400 $20 $35 1.10 x Cost Per Accepted IRS Rate Field Superviosr - FS SURVEYING: 1.10 x Cost Per Accepted IRS Rate Courier - Next Day - PSCN Milage - Outside Local Area - EMIL Subsistence - ESUB Plotting and In-House Reproduction - EPHP Senior Landscaper - SLA Landscape Architect - LA Project Manager - OSSTP Senior Project Manager - OSMP Design Supervisor - OSDS Senior CADD Technician/Designer - OSSCT Principal - OSPP Associate - OSAP Engineering Aid/Planning Aid - OSEPA TECHNICAL SERVICE: OFFICE SERVICES: CADD Technician III - OSCT3 Junior Field Engineer - FSJFE Assistant Field Engineer - FSTFE Associate Field Engineer - FSEFE Senior Field Engineer - FSSFECADD Technician I - OSCT1 Project Administrator - OSPAD Project Assistant - OSPA Other Expenses-Including Subconsultants & Purchased Services Through Subcontracts - EOTH Milage - Outside Local Area - EMIL Courier - Same Day - PSCS Courier - Next Day - PSCN Litigation Support - ELIT LABOR ESTIMATE FEE SUMMARY BASIC BILLING RATES FIELD SERVICES: CONSTRUCTION MANAGEMENT: CA Office: 15092 Avenue of Science #200, San Diego, CA 92128 Construction Manager - FSCM Survey Manager - FSSM 3-Person Survey Crew - FS3P 2-Person Survey Crew - FS2P 1-Person Survey Crew - FS1P 1-Person Survey Crew (GPS)(Robotic) - FS1R Associate Engineer/Planner/Surveyor - OSEEP Assistant Engineer/Planner/Surveyor - OSTSP Senior Engineer/Planner/Surveyor - OSSP CADD Technician II - OSCT2 Junior Engineer/Planner/Surveyor - OSJP PROFESSIONAL: Landscape Designer - LD EXPENSES: Plotting and In-House Reproduction - EPHP Subsistence - ESUB Litigation Support - ELIT Courier - Same Day - PSCS Other Expenses-Including Subconsultants & Purchased Services Through Subcontracts - EOTH 53 Page 1 of 1 Phase Task Task/Sub - - - - SLA LA LD - OSSTP OSSCT - - HOURS FEE % - -- - - - - - - - - - 1.00 90% LS PS&E Review Reference Materials and Engineering Documents 2 2 4 $598 1.77% Prepare 90% Planting and Irrigation Plans 6 16 60 82 $10,876 32.19% Prepare 90% LS SP's and Opinion of Probable Const Costs 6 4 6 16 $2,458 7.28% Design Team Coordination and Quality Control 2 2 4 $692 2.05% subtotal 106 $14,624 99% LS PS&E Prepare 99% Planting and Irrigation Plans 4 12 24 40 $5,568 16.48% Prepare 99% LS Special Provisions 4 2 4 10 $1,528 4.52% Prepare 99% LS Opinion of Probable Const Costs 2 1 4 7 $1,002 2.97% Design Team Coordination and Quality Control 1 1 2 $346 1.02% subtotal 59 $8,444 Final (100%) Signed LS PS&E Prepare Final Planting and Irrigation Plans 2 6 12 20 $2,784 8.24% Prepare Final LS Special Provisions 2 2 2 6 $930 2.75% Prepare Final LS Opinion of Probable Const Costs 2 1 2 5 $764 2.26% Design Team Coordination and Quality Control 1 1 2 $346 1.02% subtotal 33 $4,824 Reimbursable Expenses 0 $70 0.21% subtotal 0 $70 2.00 Project Management 18 12 30 $5,820 17.23% Subtotal 30 $5,820 End of Task - - - - SLA LA LD - OSSTP OSSCT - - 0 0 0 0 34 48 116 0 18 12 0 0 228 $33,782 100.00% 0 0 0 0 34 48 116 0 18 12 0 0 228 $33,782 100.00% TASK DESCRIPTION LABOR CODE/STAFF HOURS TOTALS PAGE TOTALS TOTAL - THIS PAGE TOTAL - ALL PAGES 54 City of La Quinta CITY COUNCIL MEETING: February 17, 2026 STAFF REPORT AGENDA TITLE: APPROVE DEMAND REGISTERS DATED JANUARY 23 AND 30, 2026 RECOMMENDATION Approve demand registers dated January 23 and 30, 2026. EXECUTIVE SUMMARY – None FISCAL IMPACT Demand of Cash: City 2,919,690.06$ Successor Agency of RDA 1,925.00$ Housing Authority 16,141.63$ 2,937,756.69$ BACKGROUND/ANALYSIS Routine bills and payroll must be paid between Council meetings. Attachment 1 details the weekly demand registers for January 23, and 30, 2026. Warrants Issued: 218897-218969 374,343.18$ EFT 332-335 11,375.88$ 218971-219015 1,798,046.62$ EFT 336-338 3,290.80$ Voids (4,046.00)$ Wire Transfers 397,399.42$ Payroll Tax Transfers 61,494.50$ Payroll Direct Deposit 295,852.29$ 2,937,756.69$ *Check number 218970, payable to Whitford Taylor & Preston, LLP, will be reported on a future Demand Register Report. Two checks were voided as a result of a department error and non-receipt of the mailed check by the vendor. Checks may be reissued as needed. CONSENT CALENDAR ITEM NO. 5 55 The most significant expenditures on the demand registers are: Vendor Account Name Amount Purpose Riverside County Sheriff Department(1)Various $1,214,581.16 Police Services Desert Concepts Construction, Inc.(1)Various $256,944.25 Citywide Medians/Parks Repair and Maintenance JSL Architecture, Inc.Design $96,448.35 Maintenance and Operations Yard Design Services Performance Concrete Services, Inc.Maintenance/Services $47,350.00 Citywide Sidewalk Offset Removals Desert Sands Unified School District School Officer $42,072.94 School Resource Officers (1) Payments were made 01/23/26 & 1/30/26 Wire Transfers: Thirteen transfers totaled $397,399. Of this amount, $299,829 was to Landmark, and $68,399 was to CalPERS. (See Attachment 2 for a complete listing). Investment Transactions: Full details of investment transactions, as well as total holdings, are reported quarterly in the Treasurer’s Report. Prepared by: Jesse Batres, Finance Technician Approved by: Rosemary Hallick, Principal Management Analyst Attachments: 1. Demand Registers 2. Wire Transfers Transaction Issuer Type Par Value Settle Date Coupon Rate YTM Maturity Federal Home Loan Banks Agency 500,000$ 1/14/2026 0.510% 0.510% Maturity Simmons (formerly Landmark Community) Bank CD 248,000$ 1/22/2026 0.500% 0.500% Maturity Southern Bank CD 244,000$ 1/28/2026 4.250% 4.250% Maturity Federal Home Loan Banks Agency 500,000$ 1/29/2026 0.550% 0.550% Maturity United States Treasury Treasury Note 500,000$ 1/31/2026 0.375% 0.577% Maturity United States Treasury Treasury Note 1,000,000$ 1/31/2026 4.250% 4.330% 56 2/9/2026 1:56:04 PM Page 1 of 7 Demand Register Packet: APPKT04438 - 01/23/2026 JB AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 358.40InstructorsDEEP STRETCH CLASS332ATSUKO YAMANE HEWETT 101-3002-60107 42.00InstructorsDEEP STRETCH DI CLASSES332ATSUKO YAMANE HEWETT 101-3002-60107 132.00InstructorsPERSONAL TRAINING 3 SESSIONS CLASS333JENSEN, SHARLA W 101-3002-60107 792.00InstructorsPERSONAL TRAINING 6 SESSIONS CLASS…333JENSEN, SHARLA W 101-3002-60107 96.00Instructors1 DAY SESSION CLASSES333JENSEN, SHARLA W 101-3002-60107 792.00InstructorsPERSONAL TRAINING 6 SESSIONS CLASS…333JENSEN, SHARLA W 101-3002-60107 191.10InstructorsYOGA FLOW CLASS335WILLIAMS, BILLEE 101-3002-60107 218.40InstructorsPILATES CLASS335WILLIAMS, BILLEE 101-3002-60107 277.20InstructorsMAT PILATES DI CLASSES335WILLIAMS, BILLEE 101-3002-60107 12.60InstructorsYOGA FLOW CLASS335WILLIAMS, BILLEE 101-3002-60107 309.40InstructorsYOGA FLOW WEDNESDAY CLASSES335WILLIAMS, BILLEE 101-3002-60107 840.26Operating SuppliesWC GYM WIPES 5 CASES218897A1 AMERICAN 101-3002-60420 840.26Operating SuppliesWC GYM WIPES 5 CASES218897A1 AMERICAN 101-3002-60420 240.57PM 10 - Dust Control01/2026 - PM 10 ANSWERING SERVICES218898ANSAFONE CONTACT CENTE…101-7006-60146 45.00Special Enforcement FundsINVESTIGATION PHONE PINGS LA25323…218899AT&T 101-2001-60175 4,407.72Maintenance/Services12/02/25 - IRONMAN STREET SWEEPING…218900BANCROFT CONSTRUCTION …101-7003-60691 2,893.76Maintenance/Services12/05/25 - IRONMAN STREET SWEEPING…218900BANCROFT CONSTRUCTION …101-7003-60691 460.00Blood/Alcohol TestingBLOOD ALCOHOL ANALYSIS218901BIO-TOX LABORATORIES 101-2001-60174 1,745.00BSAS SB 1473 Fees10/01-12/31/25 - BSAS SB 1473 FEES218903CALIFORNIA BUILDING STAN…101-0000-20306 -174.50CBSC Administrative Fees10/01-12/31/25 - BSAS SB 1473 FEES218903CALIFORNIA BUILDING STAN…101-0000-42615 220.51Water - UtilitiesWATER SERVICE218905COACHELLA VALLEY WATER D…101-2002-61200 26.78Water - UtilitiesWATER SERVICE218905COACHELLA VALLEY WATER D…101-3008-61200 1,390.46Water -Desert Pride - UtilitiesWATER SERVICE218905COACHELLA VALLEY WATER D…101-3005-61206 243.52Operating Supplies12/2025 - RADIO MAINTENANCE218907COUNTY OF RIVERSIDE PUBL…101-2001-60420 1,442.05Employee Recognition Events2026 EMPLOYEE RECOGNITION EVENT …218908CV BBQ, INC 101-1004-60340 200.00Administrative Citation Servi…12/2025 - CODE CITATION PROCESSING218909DATA TICKET, INC.101-6004-60111 193.37Administrative Citation Servi…12/2025 - POLICE CITATION PROCESSING218909DATA TICKET, INC.101-6004-60111 70.00Blood/Alcohol Testing11/2025 - BLOOD ALCOHOL ANALYSIS218910DEPARTMENT OF JUSTICE 101-2001-60174 64.00Consultants/Employee Servic…12/2025 - LQYC FINGERPRINTING218910DEPARTMENT OF JUSTICE 101-1004-60104 35.00Blood/Alcohol Testing12/2025 - BLOOD ALCOHOL ANALYSIS218910DEPARTMENT OF JUSTICE 101-2001-60174 13,500.00Maintenance/Services8/4-8/13/25 LQ PARK INFIELD IMPROV…218911DESERT CONCEPTS CONSTR…101-3005-60691 7,200.00Maintenance/Services9/22-9/25/25 LQ PARK LANDSCAPE RES…218911DESERT CONCEPTS CONSTR…101-3005-60691 1,350.00Maintenance/ServicesCOVE PARKING LOT GATE REPAIRS218911DESERT CONCEPTS CONSTR…101-3005-60691 11,250.00Maintenance/ServicesFB PARK PICKLEBALL GATES218911DESERT CONCEPTS CONSTR…101-3005-60691 4,800.00Maintenance/ServicesPIONEER PARK REPAIR AND MAINTENA…218911DESERT CONCEPTS CONSTR…101-3005-60691 42,072.94School Officer9/18-11/12/25 BP #4 & #5 SCHOOL RES…218912DESERT SANDS UNIFIED SCH…101-2001-60168 875.00Employee Recognition Events2026 EMPLOYEE RECOGNITION EVENT R…218914E & E PELS ENTERPRISE, INC 101-1004-60340 180.91Special Enforcement Funds01/09/26 DUI CHECKPOINT FOOD REIMB…218915FOSTER, ROCIO 101-2001-60175 225.82Garnishments PayableGARNISHMENT218916FRANCHISE TAX BOARD 101-0000-20985 1,500.00Employee Recognition Events2026 EMPLOYEE RECOGNITION EVENT …218917FREGOSO, JESUS H.101-1004-60340 325.00Miscellaneous DepositsFACILITY RENTAL DEPOSIT REFUND218919GARCIA, ANGEL 101-0000-22830 893.86Materials/SuppliesROOF REPAIR TAPE218922GRAINGER 101-3008-60431 2,955.13Materials/SuppliesDRINKING FOUNTAIN FOR CH LOBBY218922GRAINGER 101-3008-60431 4,550.00Map/Plan Checking12/2025 - ONCALL PLAN CHECK ENGINE…218923HR GREEN PACIFIC INC 101-7002-60183 1,291.71Electricity - UtilitiesELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 101-2002-61101 19.30Electric - Monticello Park - Uti…ELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 101-3005-61102 28.59Electric - Fritz Burns Park - Uti…ELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 101-3005-61105 4,058.92Electric - Sports Complex - Uti…ELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 101-3005-61106 359.92Electric - Colonel Paige - Utilit…ELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 101-3005-61108 371.81Electric - Community Park - U…ELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 101-3005-61109 21.24Electric - Velasco Park - Utiliti…ELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 101-3005-61111 29.41Electric - Eisenhower Park - U…ELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 101-3005-61113 19.52Electric - Desert Pride - Utiliti…ELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 101-3005-61114 ATTACHMENT 1 57 Demand Register Packet: APPKT04438 - 01/23/2026 JB 2/9/2026 1:56:04 PM Page 2 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number 2,098.26Electricity - UtilitiesELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 101-3008-61101 750.00Employee Recognition Events2026 EMPLOYEE RECOGNITION EVENT …218925JESUS ADRIAN SUAREZ LOPEZ 101-1004-60340 5,005.00Operating SuppliesWELLNESS CENTER- INTERIOR HOLIDAY …218926JK PROPERTY SERVICES 101-3002-60420 147.99HVACWC HVAC AIR FILTERS218927JOHNSTONE SUPPLY 101-3008-60667 738.60Maintenance/Services01/01-03/31/26 - CH ELEVATOR MAINT…218928KONE INC 101-3008-60691 500.00Miscellaneous DepositsDEPOSIT REFUND218929LA QUINTA SPANISH CONGR…101-0000-22830 100.00Miscellaneous DepositsDEPOSIT REFUND FOR COVE OASIS218931LIFE'S SHORT PICNIC 101-0000-22830 2,437.50Professional ServicesCLASSIFICATION & COMPENSATION REV…218932LOGIC COMPENSATION GRO…101-1004-60103 294.00InstructorsACT II: WORKSHOP CLASS218933MAGRINO, SUSAN A.101-3002-60107 15,833.98Janitorial12/2025 CITYWIDE JANITORIAL SERVICES218935MERCHANTS BUILDING MAI…101-3008-60115 60.38Office SuppliesPRINTER TONER & PENS218939ODP BUSINESS SOLUTIONS, L…101-6004-60400 125.00HVAC12/2025 - CH WATER TREATMENT218940PACIFIC WEST AIR CONDITIO…101-3008-60667 15,800.00HVACHVAC i-Vu CONTROLS REPLACEMENT218940PACIFIC WEST AIR CONDITIO…101-3008-60667 2,705.81Promotional ItemsNOTEBOOKS FOR PROMO ITEMS218941FREDERICK A ARMSTRONG, JR 101-3007-60134 4,561.32Security & AlarmEISENHOWER CASITA FIRE ALARM UPG…218942PYE BARKER 101-3008-60123 4,561.31Security & AlarmEISENHOWER CASITA FIRE ALARM UPG…218942PYE BARKER 101-3008-60123 500.00Miscellaneous DepositsFACILITY RENTAL DEPOSIT REFUND218943RAMIREZ, LAURA 101-0000-22830 975.00Map/Plan CheckingPMER 2025-0006 ON-CALL MAP CHECKI…218944ERIC ALAN NELSON 101-7002-60183 525.00Map/Plan CheckingLOWES HWY 111 DEDICATION MAP CHE…218944ERIC ALAN NELSON 101-7002-60183 1,236.53Sheriff - Other10/24-11/25/25 - MOTOR FUEL CHARGES218946RIVERSIDE COUNTY SHERIFF …101-2001-60176 140.00InstructorsBALLROOM LATIN SWING CLASS218949SHIRY, TERESA 101-3002-60107 157.50InstructorsBALLROOM LATIN SWING DI CLASSES218949SHIRY, TERESA 101-3002-60107 2,034.00Maintenance/ServicesSRR EVENT GLASS REPLACEMENT218951SUPREME WINDOW & DOOR …101-3008-60691 42.00InstructorsSOUND BATH CLASS218952SUSAN ALEXANDRA BRAUC…101-3002-60107 140.00InstructorsSOUND BATH CLASSES218952SUSAN ALEXANDRA BRAUC…101-3002-60107 50.00Special Enforcement Funds11/20/25 - POLICE GPS LOCATE LA2532…218953T MOBILE USA INC 101-2001-60175 50.00Special Enforcement Funds11/19/25 - POLICE GPS LOCATE LA2532…218953T MOBILE USA INC 101-2001-60175 2,827.50Employee Recognition Events2026 EMPLOYEE RECOGNITION EVENT …218955THE KIDS BUSINESS 101-1004-60340 247.95Operating SuppliesLQ RESIDENT CARD APPLICATIONS (500)218957THE PRINTING PLACE 101-3002-60420 90.00Recruiting/Pre-Employment12/01/25 - PRE EMPLOYMENT PHYSICAL218958TOTAL CARE WORK INJURY C…101-1004-60129 180.00Pest ControlFS #32 BEE HIVE REMOVAL218960TRULY NOLEN INC 101-2002-60116 108.00United Way DeductionsCONTRIBUTION218962UNITED WAY OF THE DESERT 101-0000-20981 895.00Maintenance/ServicesCH MAIN LINE BACK UP REPAIR218964USA DRAIN AND PLUMBING…101-3008-60691 3,300.00Maintenance/ServicesSRR PARK GOPHER WIRE REPAIRS218966VINTAGE ASSOCIATES 101-3005-60691 1,856.10Maintenance/ServicesFS #70 ON-CALL ELECTRICAL SERVICES218967VINTAGE E & S INC 101-2002-60691 1,121.82Maintenance/Services10/24/25 - FS #93 ON-CALL ELECTRICAL …218967VINTAGE E & S INC 101-2002-60691 6,713.68Maintenance/ServicesWC GYM LIGHTING REPLACEMENT218967VINTAGE E & S INC 101-3008-60691 761.26Materials/SuppliesSOD FOR CIVIC CENTER CAMPUS218968WEST COAST TURF 101-3005-60431 761.26Materials/SuppliesSOD FOR CIVIC CENTER CAMPUS218968WEST COAST TURF 101-3005-60431 247.31PrintingCODE VEHICLE BROCHURES (500)218969XPRESS GRAPHICS 101-6004-60410 Fund 101 - GENERAL FUND Total:196,963.00 Fund: 201 - GAS TAX FUND 106.00Materials/Supplies01/01/26 - DIG ALERT SERVICES218961UNDERGROUND SERVICE AL…201-7003-60431 Fund 201 - GAS TAX FUND Total:106.00 Fund: 202 - LIBRARY & MUSEUM FUND 110.63Water - UtilitiesWATER SERVICE218905COACHELLA VALLEY WATER D…202-3006-61200 690.00Cable/Internet - Utilities01/04-02/03/26 - LIBRARY DIA CIRCUIT218918FRONTIER COMMUNICATIO…202-3004-61400 2,758.95Electricity - UtilitiesELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 202-3004-61101 822.96Electricity - UtilitiesELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 202-3006-61101 1,995.00Operating SuppliesLIBRARY - INTERIOR HOLIDAY DECOR218926JK PROPERTY SERVICES 202-3004-60420 1,000.00Operating SuppliesMUSEUM - INTERIOR HOLIDAY DECOR218926JK PROPERTY SERVICES 202-3006-60420 738.60Maintenance/Services01/01-03/31/26 - MUSEUM ELEVATOR …218928KONE INC 202-3006-60691 3,264.32Janitorial12/2025 LIBRARY JANITORIAL SERVICES218935MERCHANTS BUILDING MAI…202-3004-60115 989.54Janitorial12/2025 MUSEUM JANITORIAL SERVICES218935MERCHANTS BUILDING MAI…202-3006-60115 125.00HVAC12/2025 - LIBRARY WATER TREATMENT218940PACIFIC WEST AIR CONDITIO…202-3004-60667 2,001.96HVACLIBRARY HVAC REPAIRS218940PACIFIC WEST AIR CONDITIO…202-3004-60667 3,780.00HVACLIBRARY HVAC PREVENTATIVE MAINTE…218940PACIFIC WEST AIR CONDITIO…202-3004-60667 30.88Maintenance/ServicesLIBRARY KEYS218956THE LOCK SHOP, INC 202-3004-60691 Fund 202 - LIBRARY & MUSEUM FUND Total:18,307.84 58 Demand Register Packet: APPKT04438 - 01/23/2026 JB 2/9/2026 1:56:04 PM Page 3 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 215 - LIGHTING & LANDSCAPING FUND 675.86Water - Medians - UtilitiesWATER SERVICE218905COACHELLA VALLEY WATER D…215-7004-61211 462.25Electric - UtilitiesELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 215-7004-61116 38.86Electric - Medians - UtilitiesELECTRICITY SERVICE218924IMPERIAL IRRIGATION DIST 215-7004-61117 300.00Maintenance/ServicesPALM TREE LIGHT CHANGING COLOR SE…218947ROTOLIGHTNG, INC 215-7004-60691 Fund 215 - LIGHTING & LANDSCAPING FUND Total:1,476.97 Fund: 223 - MEASURE A FUND 1,025.96Signal Knockdowns, Conting…HWY 111 & ADAMS PED POLE KNOCKD…218950ST. FRANCIS ELECTRIC, LLC 223-0000-60510 Fund 223 - MEASURE A FUND Total:1,025.96 Fund: 230 - CASp FUND, AB 1379 438.40Contributions to State Agency10/01-12/31/25 SB 1186 FEES 10% QUA…218913DIVISION OF THE STATE ARC…230-0000-60480 Fund 230 - CASp FUND, AB 1379 Total:438.40 Fund: 237 - SUCCESSOR AGCY PA 1 ADMIN 1,925.00Consultants12/01/25-11/30/26 2016A BOND TRUST…218963US BANK 237-9001-60104 Fund 237 - SUCCESSOR AGCY PA 1 ADMIN Total:1,925.00 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 7,042.00ConstructionFB PARK IMPROVEMENTS METER RELO…218906COACHELLA VALLEY WATER D…401-0000-60188 32,746.25DesignHWY 111 CORRIDOR PLANNING/ENGIN…218921GHD INC.401-0000-60185 1,785.60Technical12/4-12/17/25 FB PARK IMPROVEMENT…218930LANDMARK CONSULTANTS, …401-0000-60108 32,998.49Design10/27-11/23/25 - AVE 50 BRIDGE DESIGN218934MARK THOMAS & COMPANY,…401-0000-60185 4,950.00Design10/1-11/30/25 - MISC RETENTION BASIN…218936MULHOLLAND CONSULTING …401-0000-60185 585.50Professional Services12/2025 DUNE PALMS BRIDGE IMPROV…218937NAI CONSULTING INC 401-0000-60103 5,602.50Professional Services12/2025 FRITZ BURNS PARK IMPROVM…218937NAI CONSULTING INC 401-0000-60103 1,755.00Professional Services12/2025 AVE 50 WIDENING IMPROV JEF…218937NAI CONSULTING INC 401-0000-60103 675.00Professional Services12/2025 WASHINGTON CONNECTOR TO…218937NAI CONSULTING INC 401-0000-60103 4,281.00Professional Services12/2025 AVE 50 BRIDGE SPANNING THE…218937NAI CONSULTING INC 401-0000-60103 680.00Professional Services12/2025 AVE 50 SIDEWALK IMPROV WA…218937NAI CONSULTING INC 401-0000-60103 1,550.00Professional Services12/2025 MAINTENANCE AND OPERATI…218937NAI CONSULTING INC 401-0000-60103 390.00Professional Services12/2025 CIVIC CENTER LAKE/IRRIGATIO…218937NAI CONSULTING INC 401-0000-60103 1,170.00Professional Services12/2025 CITYWIDE MISCELLANEOUS AD…218937NAI CONSULTING INC 401-0000-60103 2,766.00Professional Services12/2025 DUNE PALMS MOBILE ESTATES…218937NAI CONSULTING INC 401-0000-60103 390.00Professional Services12/2025 CITY HALL DRAINAGE IMROVE…218937NAI CONSULTING INC 401-0000-60103 47.50Professional Services12/2025 WASHINGTON ST PAVEMENT R…218937NAI CONSULTING INC 401-0000-60103 95.00Professional Services12/2025 AVE 52/JEFFERSON ROUNDAB…218937NAI CONSULTING INC 401-0000-60103 2,620.50Professional Services12/2025 BPMP BRIDGE PREVENTION MA…218937NAI CONSULTING INC 401-0000-60103 975.00Professional Services12/2025 AVE 52 MONROE STREET (NEW…218937NAI CONSULTING INC 401-0000-60103 432.50Professional Services12/2025 HIGHWAY 111 CORRIDOR218937NAI CONSULTING INC 401-0000-60103 580.00Professional Services12/2025 MISC. RETENTION BASIN IMPR…218937NAI CONSULTING INC 401-0000-60103 1,117.50Professional Services12/2025 COVE AREA SLURRY SEAL IMP…218937NAI CONSULTING INC 401-0000-60103 8,948.00Professional Services12/2025 CITY WIDE STRIPPING REFRESH218937NAI CONSULTING INC 401-0000-60103 2,987.50Professional Services12/2025 HIGHWAY 111 REHABILITATION218937NAI CONSULTING INC 401-0000-60103 290.00Professional Services12/2025 WASHINGTON SIDEWALK IMP…218937NAI CONSULTING INC 401-0000-60103 1,502.50Professional Services12/2025 VILLAGE ART/CULTURAL PLAZA218937NAI CONSULTING INC 401-0000-60103 4,528.00Professional ServicesARCGIS SURVEY FOR 76 WATER INLETS218938NATIONAL DATA & SURVEYI…401-0000-60103 3,484.00Construction12/2025 ON-CALL TRAFFIC SIGNAL REPA…218950ST. FRANCIS ELECTRIC, LLC 401-0000-60188 3,294.50Construction12/2025 DUNE PALMS RD BRIDGE MAN…218954T.Y. LIN INTERNATIONAL 401-0000-60188 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:130,269.84 Fund: 501 - FACILITY & FLEET REPLACEMENT 8,154.78Fuel & Oil11/26-12/25/25 - FUEL334WEX BANK 501-0000-60674 341.29Motorcycle Repair & Mainte…MOTORCYCLE REPAIRS R1250RTP218902BMW MOTORCYCLES OF RIV…501-0000-60679 470.00Motorcycle Repair & Mainte…MOTORCYCLE REPAIRS R1250RT218902BMW MOTORCYCLES OF RIV…501-0000-60679 779.61Vehicle Repair & Maintenan…12/2025 - CAR WASH MEMBERSHIP218948QUICK QUACK CAR WASH H…501-0000-60676 Fund 501 - FACILITY & FLEET REPLACEMENT Total:9,745.68 Fund: 502 - INFORMATION TECHNOLOGY 191.29Cable/Internet - Utilities01/10-02/09/26 - CH CABLE (2601)218904CHARTER COMMUNICATIONS…502-0000-61400 2,079.00Cable/Internet - Utilities01/10-02/09/26 - CH INTERNET (1801)218904CHARTER COMMUNICATIONS…502-0000-61400 14.73Cable/Internet - Utilities01/10-02/09/26 - WC CABLE (2101)218904CHARTER COMMUNICATIONS…502-0000-61400 81.63Cable/Internet - Utilities01/10-02/09/26 - CITY YARD CABLE (580…218904CHARTER COMMUNICATIONS…502-0000-61400 59 Demand Register Packet: APPKT04438 - 01/23/2026 JB 2/9/2026 1:56:04 PM Page 4 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number 2,580.00Cable/Internet - Utilities01/03-02/02/26 - 2ND CITY INTERNET LI…218918FRONTIER COMMUNICATIO…502-0000-61400 690.00Cable/Internet - Utilities01/04-02/03/26 - WC DIA CIRCUIT218918FRONTIER COMMUNICATIO…502-0000-61400 718.68Cable/Internet - Utilities01/04-02/03/26 - DSL SVC218918FRONTIER COMMUNICATIO…502-0000-61400 8,685.25Software Licenses12/2025 GEOGRAPHIC INFORMATION S…218945RINCON CONSULTANTS, INC.502-0000-60301 5,437.50Maintenance Agreements01/01-03/31/26 - AV SUPPORT & MAIN…218959TRITON TECHNOLOGY SOLUT…502-0000-60300 1,173.72Cell/Mobile Phones12/2/25-1/1/26 - CITY IPADS (5587)218965VERIZON WIRELESS 502-0000-61301 3,405.00Cell/Mobile Phones12/2/25-1/1/26 - CITY CELL SVC (5496)218965VERIZON WIRELESS 502-0000-61301 Fund 502 - INFORMATION TECHNOLOGY Total:25,056.80 Fund: 601 - SILVERROCK RESORT 403.57Bank Fees12/2025 - SRR ARMORED SVCS TIER PRIC…218920GARDAWORLD 601-0000-60455 Fund 601 - SILVERROCK RESORT Total:403.57 Grand Total:385,719.06 60 Demand Register Packet: APPKT04438 - 01/23/2026 JB 2/9/2026 1:56:04 PM Page 5 of 7 Fund Summary Fund Expense Amount 101 - GENERAL FUND 196,963.00 201 - GAS TAX FUND 106.00 202 - LIBRARY & MUSEUM FUND 18,307.84 215 - LIGHTING & LANDSCAPING FUND 1,476.97 223 - MEASURE A FUND 1,025.96 230 - CASp FUND, AB 1379 438.40 237 - SUCCESSOR AGCY PA 1 ADMIN 1,925.00 401 - CAPITAL IMPROVEMENT PROGRAMS 130,269.84 501 - FACILITY & FLEET REPLACEMENT 9,745.68 502 - INFORMATION TECHNOLOGY 25,056.80 601 - SILVERROCK RESORT 403.57 Grand Total:385,719.06 Account Summary Account Number Account Name Expense Amount 101-0000-20306 BSAS SB 1473 Fees 1,745.00 101-0000-20981 United Way Deductions 108.00 101-0000-20985 Garnishments Payable 225.82 101-0000-22830 Miscellaneous Deposits 1,425.00 101-0000-42615 CBSC Administrative Fees -174.50 101-1004-60103 Professional Services 2,437.50 101-1004-60104 Consultants/Employee S…64.00 101-1004-60129 Recruiting/Pre-Employm…90.00 101-1004-60340 Employee Recognition E…7,394.55 101-2001-60168 School Officer 42,072.94 101-2001-60174 Blood/Alcohol Testing 565.00 101-2001-60175 Special Enforcement Fu…325.91 101-2001-60176 Sheriff - Other 1,236.53 101-2001-60420 Operating Supplies 243.52 101-2002-60116 Pest Control 180.00 101-2002-60691 Maintenance/Services 2,977.92 101-2002-61101 Electricity - Utilities 1,291.71 101-2002-61200 Water - Utilities 220.51 101-3002-60107 Instructors 3,994.60 101-3002-60420 Operating Supplies 6,933.47 101-3005-60431 Materials/Supplies 1,522.52 101-3005-60691 Maintenance/Services 41,400.00 101-3005-61102 Electric - Monticello Park…19.30 101-3005-61105 Electric - Fritz Burns Park…28.59 101-3005-61106 Electric - Sports Complex…4,058.92 101-3005-61108 Electric - Colonel Paige -…359.92 101-3005-61109 Electric - Community Par…371.81 101-3005-61111 Electric - Velasco Park - …21.24 101-3005-61113 Electric - Eisenhower Par…29.41 101-3005-61114 Electric - Desert Pride - U…19.52 101-3005-61206 Water -Desert Pride - Util…1,390.46 101-3007-60134 Promotional Items 2,705.81 101-3008-60115 Janitorial 15,833.98 101-3008-60123 Security & Alarm 9,122.63 101-3008-60431 Materials/Supplies 3,848.99 101-3008-60667 HVAC 16,072.99 101-3008-60691 Maintenance/Services 10,381.28 101-3008-61101 Electricity - Utilities 2,098.26 101-3008-61200 Water - Utilities 26.78 101-6004-60111 Administrative Citation …393.37 101-6004-60400 Office Supplies 60.38 101-6004-60410 Printing 247.31 101-7002-60183 Map/Plan Checking 6,050.00 101-7003-60691 Maintenance/Services 7,301.48 61 Demand Register Packet: APPKT04438 - 01/23/2026 JB 2/9/2026 1:56:04 PM Page 6 of 7 Account Summary Account Number Account Name Expense Amount 101-7006-60146 PM 10 - Dust Control 240.57 201-7003-60431 Materials/Supplies 106.00 202-3004-60115 Janitorial 3,264.32 202-3004-60420 Operating Supplies 1,995.00 202-3004-60667 HVAC 5,906.96 202-3004-60691 Maintenance/Services 30.88 202-3004-61101 Electricity - Utilities 2,758.95 202-3004-61400 Cable/Internet - Utilities 690.00 202-3006-60115 Janitorial 989.54 202-3006-60420 Operating Supplies 1,000.00 202-3006-60691 Maintenance/Services 738.60 202-3006-61101 Electricity - Utilities 822.96 202-3006-61200 Water - Utilities 110.63 215-7004-60691 Maintenance/Services 300.00 215-7004-61116 Electric - Utilities 462.25 215-7004-61117 Electric - Medians - Utilit…38.86 215-7004-61211 Water - Medians - Utiliti…675.86 223-0000-60510 Signal Knockdowns, Cont…1,025.96 230-0000-60480 Contributions to State A…438.40 237-9001-60104 Consultants 1,925.00 401-0000-60103 Professional Services 43,969.00 401-0000-60108 Technical 1,785.60 401-0000-60185 Design 70,694.74 401-0000-60188 Construction 13,820.50 501-0000-60674 Fuel & Oil 8,154.78 501-0000-60676 Vehicle Repair & Maint…779.61 501-0000-60679 Motorcycle Repair & Ma…811.29 502-0000-60300 Maintenance Agreements 5,437.50 502-0000-60301 Software Licenses 8,685.25 502-0000-61301 Cell/Mobile Phones 4,578.72 502-0000-61400 Cable/Internet - Utilities 6,355.33 601-0000-60455 Bank Fees 403.57 Grand Total:385,719.06 Project Account Summary Project Account Key Expense AmountProject Account Name Project Name **None**195,469.62**None****None** 111205CT 3,294.50Construction Expense Dune Palms Bridge Imp/BRLKS-5433(014) 111205P 585.50Professional Expense Dune Palms Bridge Imp/BRLKS-5433(014) 201606P 390.00Professional Expense Civic Center Campus Lake/Irrigation Conv Improvmnt 201805P 1,550.00Professional Expense Corporate Yard Admin Offices & Crew Quarters 201901P 1,502.50Professional Expense Village Art Plaza Promenade & Cultural Campus 201902D 32,998.49Design Expense Avenue 50 Bridge Spanning the Evacuation Channel 201902P 4,281.00Professional Expense Avenue 50 Bridge Spanning the Evacuation Channel 201905D 32,746.25Design Expense Highway 111 Corridor Area Plan Implementation 201905P 432.50Professional Expense Highway 111 Corridor Area Plan Implementation 201908P 4,528.00Professional Expense Citywide Catch Basin Modification 202102CT 7,042.00Construction Expense Fritz Burns Park Improvements 202102P 5,602.50Professional Expense Fritz Burns Park Improvements 202102T 1,785.60Technical Expense Fritz Burns Park Improvements 202205P 1,755.00Professional Expense Avenue 50 Widening Improvements (Jeff to Madison) 202216E 17,400.00General PW Maint - Desert Concep…General PW Maintenance - Desert Concepts 202225P 2,987.50Professional Expense Highway 111 Rehabilitation Project 202302P 975.00Professional Expense Avenue 52 Monroe Street 202303P 290.00Professional Expense Washington St Sidewalk Imp (Ave 50 to CalleTamp) 202309P 675.00Professional Expense Washington Street Connector to Art and Music Line 202330B 20,700.00DIR 20250603458 On-Call Services Park Landscape Maintenance Services 202330E 1,522.52Park Landscape Maintenance Servi…Park Landscape Maintenance Services 62 Demand Register Packet: APPKT04438 - 01/23/2026 JB 2/9/2026 1:56:04 PM Page 7 of 7 Project Account Summary Project Account Key Expense AmountProject Account Name Project Name 202331E 3,300.00SilverRock Landscape Maintenance…SilverRock Landscape Maintenance Services 202333P 2,620.50Professional Expense Bridge Preventative Maint Program 202335D 4,950.00Design Expense Miscellaneous Retention Basin Improvements 202335P 580.00Professional Expense Miscellaneous Retention Basin Improvements 202401P 680.00Professional Expense Avenue 50 Sidewalk Imp (Wash St to Ave Montero) 202404P 390.00Professional Expense City Hall Drainage Improvements 202410P 95.00Professional Expense Aveue 52 at Jefferson Street Roundabout Improvemen 202425E 9,691.60On-Call Electrical Services On-Call Electrical Services 202501P 8,948.00Professional Expense Citywide Striping Refresh 202502P 1,117.50Professional Expense Cove Area Slurry Seal Improvements Phase 2 202505P 47.50Professional Expense Washington St Pavement Rehab (Eisenhower Dr) 202506P 1,170.00Professional Expense FY 25/26 Citywide Miscellaneous ADA Improvements 202509P 2,766.00Professional Expense Dune Palms Mobile Estates Pool Abandonment 2526TMICT 3,484.00Construction Expense FY25/26 Traffic Maintenance Improvements IRONE 7,301.48Ironman Expense Ironman Event LQYCE 64.00La Quinta Youth Collective Expens…La Quinta Youth Collective Grand Total:385,719.06 *Project codes are generally used to track Capital Improvement Program (CIP) projects, other large public works projects, developer deposits, or city-wide events. Normal operational expenditures are not project coded and, therefore, will report as "none" in this section. 63 2/9/2026 1:55:30 PM Page 1 of 5 Demand Register Packet: APPKT04450 - 2026-01-30 RH PAYABLE PROCESS AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 50.00Community Experiences2/7/26 INSTRUCTOR DEMO FOR WELLN…336ATSUKO YAMANE HEWETT 101-3003-60149 3,190.80Training & Education/MOU2025 FALL TUITION REIMB S.SAMAGUEY…337CHAVEZ, SEIRI SAMAGUEY 101-1004-60322 50.00Community Experiences2/7/26 INSTRUCTOR DEMO FOR WELLN…338WILLIAMS, BILLEE 101-3003-60149 461.00Rental Expense10/01-12/31/25 - PRIVATE EVENTS INSU…218971ALLIANT INSURANCE SERVIC…101-3003-60157 504.00Blood/Alcohol TestingBLOOD ALCOHOL ANALYSIS218972AMERICAN FORENSIC NURSE…101-2001-60174 525.00Blood/Alcohol TestingBLOOD ALCOHOL ANALYSIS218972AMERICAN FORENSIC NURSE…101-2001-60174 843.00Blood/Alcohol TestingBLOOD ALCOHOL ANALYSIS218972AMERICAN FORENSIC NURSE…101-2001-60174 342.00Blood/Alcohol TestingBLOOD ALCOHOL ANALYSIS218972AMERICAN FORENSIC NURSE…101-2001-60174 376.64Mobile/Cell Phones/Satellites02/2026 - PUBLIC SAFETY RADIO RENTA…218973ANDERSON COMMUNICATI…101-2002-61304 231.75Mobile/Cell Phones/Satellites01/23-02/22/26 - EOC SATELLITE PHON…218974BLUECOSMO 101-2002-61304 181.09Citywide Supplies12/13/25-01/12/26 - CITYWIDE DRINKI…218975BLUETRITON BRANDS INC 101-1007-60403 6,747.50Plan Checks11/2025 - ONCALL BUILDING PLAN REVI…218976BUREAU VERITAS NORTH A…101-6003-60118 71.84Annual Wellness Dollar Reim…FY 25/26 WELLNESS DOLLARS REIMB M.…218977CALDERON, MICHAEL 101-1004-50252 101.71Cable/Internet - Utilities01/16-02/15/26 - FS #32 CABLE (3201)218978CHARTER COMMUNICATIONS…101-2002-61400 10.50Cable/Internet - Utilities01/16-02/15/26 - FS #32 CABLE (3301)218978CHARTER COMMUNICATIONS…101-2002-61400 48.00Cable/Internet - Utilities01/16-02/15/26 - FS #70 CABLE (4701)218978CHARTER COMMUNICATIONS…101-2002-61400 95.84Water - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…101-2002-61200 296.68Water -Fritz Burns Park - Utili…WATER SERVICE218979COACHELLA VALLEY WATER D…101-3005-61204 29.50Water -Seasons Park - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…101-3005-61208 595.11Water -Community Park - Util…WATER SERVICE218979COACHELLA VALLEY WATER D…101-3005-61209 84.18Water - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…101-3008-61200 2,031.66Water - Civic Center Park - Uti…WATER SERVICE218979COACHELLA VALLEY WATER D…101-3005-61202 1,132.30Water -Community Park - Util…WATER SERVICE218979COACHELLA VALLEY WATER D…101-3005-61209 45.49PM 10 - Dust ControlWATER SERVICE218979COACHELLA VALLEY WATER D…101-7006-60146 108.94Water - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…101-2002-61200 989.83Water -Eisenhower Park - Util…WATER SERVICE218979COACHELLA VALLEY WATER D…101-3005-61203 168.66Water -Velasco Park - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…101-3005-61205 1,716.99Water -Fritz Burns Park - Utili…WATER SERVICE218979COACHELLA VALLEY WATER D…101-3005-61204 1,161.60Water - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…101-3008-61200 81,283.10Landscape Contract01/2026 PARKS LANDSCAPE MAINTENA…218980DESERT CONCEPTS CONSTR…101-3005-60112 5,125.00Landscape Contract01/2026 L&L LANDSCAPE MAINT SVCS F…218980DESERT CONCEPTS CONSTR…101-2002-60112 450.00Maintenance/ServicesMITCHELL PAIGE/RETENTION BASIN FIR…218981DESERT TREE SPRAYING 101-3005-60691 152.25Operating Supplies2026 CALIFORNIA ELECTIONS CODE BO…218982DFM ASSOCIATES 101-1005-60420 119.73Cable/Internet - Utilities01/22-02/21/26 - EOC CABLE218983DISH NETWORK 101-2002-61400 375.00Employee Recognition Events2026 EMPLOYEE RECOGNITION EVENT R…218984E & E PELS ENTERPRISE, INC 101-1004-60340 63.09Telephone - Utilities01/2026 - LQ PARK PHONE218985FRONTIER COMMUNICATIO…101-3005-61300 127.59Operating SuppliesOFFICE SUPPLIES218988GRAINGER 101-7003-60420 111.61Operating SuppliesOFFICE SUPPLIES218988GRAINGER 101-7003-60420 804.24Operating SuppliesOFFICE SUPPLIES218988GRAINGER 101-7003-60420 1,874.87Electricity - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 101-2002-61101 1,725.31Electric - Civic Center Park - U…ELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 101-3005-61103 554.12Electric - Fritz Burns Park - Uti…ELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 101-3005-61105 26.98Electric - Velasco Park - Utiliti…ELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 101-3005-61111 2,495.44Electricity - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 101-3008-61101 3,496.55Electric - SilverRock Event Sit…ELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 101-3005-61115 1,096.84Electricity - Charging StationsELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 101-3008-61102 29,539.22Marketing & Tourism Promot…01/2026 - MEDIA SERVICES218991JNS MEDIA SPECIALISTS 101-3007-60461 1,034.40Employee Recognition Events2026 EMPLOYEE RECOGNITION EVENT K…218993KETTLEMITAS, INC 101-1004-60340 300.00Membership Dues2026 LEAGUE OF CA CITIES RIVERSIDE C…218995LEAGUE OF CALIFORNIA CITI…101-1002-60351 7,621.00Prepaid Expense7/1-12/31/26 LEAGUE OF CALIFORNIA C…218995LEAGUE OF CALIFORNIA CITI…101-0000-13600 7,621.00Membership Dues1/1-6/30/26 LEAGUE OF CALIFORNIA CIT…218995LEAGUE OF CALIFORNIA CITI…101-1002-60351 50.00Community Experiences2/7/26 INSTRUCTOR DEMO FOR WELLN…218996MILLER, BERNA 101-3003-60149 44.02Uniforms1/1/2026 PARKS UNIFORM SERVICES218997MISSION LINEN SUPPLY 101-3005-60690 64 Demand Register Packet: APPKT04450 - 2026-01-30 RH PAYABLE PROCESS 2/9/2026 1:55:30 PM Page 2 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 35.21Uniforms1/1/2026 FACILITIES UNIFORM SERVICES218997MISSION LINEN SUPPLY 101-3008-60690 43.09Uniforms1/15/26 PARKS UNIFORM SERVICES218997MISSION LINEN SUPPLY 101-3005-60690 34.47Uniforms1/15/26 FACILITIES UNIFORM SERVICES218997MISSION LINEN SUPPLY 101-3008-60690 45.36Uniforms01/22/26 PARKS UNIFORM SERVICES218997MISSION LINEN SUPPLY 101-3005-60690 36.28Uniforms01/22/26 FACILITIES UNIFORM SERVICES218997MISSION LINEN SUPPLY 101-3008-60690 642.13Tools/EquipmentBLOWER218998MOWERS PLUS INC 101-7003-60432 2,163.00LQ Park Water Feature01/2026 - LQ PARK SPLASH PAD MAINT…219000OCEAN SPRINGS TECH INC 101-3005-60554 445.46Operating SuppliesCUSTOM VEHICLE DOOR MAGNETS219001PACIFIC PRODUCTS AND SER…101-7003-60420 47,350.00Maintenance/ServicesSIDEWALK OFFSET REMOVALS 2025-15219002PERFORMANCE CONCRETE S…101-7003-60691 4,025.00Marketing & Tourism Promot…PHOTOGRAPHER FOR STAFF HEADSHOTS219003PETRILLA, TARA HOWARD 101-3007-60461 3,500.00Postage01/12/26 - CITYWIDE POSTAGE MACHIN…219005QUADIENT FINANCE USA, INC.101-1007-60470 693,045.88Sheriff Patrol10/16-11/12/25 - BP #5 POLICE SERVICE219006RIVERSIDE COUNTY SHERIFF …101-2001-60161 34,979.01Police Overtime10/16-11/12/25 - BP #5 POLICE SERVICE219006RIVERSIDE COUNTY SHERIFF …101-2001-60162 155,203.40Target Team10/16-11/12/25 - BP #5 POLICE SERVICE219006RIVERSIDE COUNTY SHERIFF …101-2001-60163 62,567.93Community Services Officer10/16-11/12/25 - BP #5 POLICE SERVICE219006RIVERSIDE COUNTY SHERIFF …101-2001-60164 17,499.20Gang Task Force10/16-11/12/25 - BP #5 POLICE SERVICE219006RIVERSIDE COUNTY SHERIFF …101-2001-60166 17,499.20Narcotics Task Force10/16-11/12/25 - BP #5 POLICE SERVICE219006RIVERSIDE COUNTY SHERIFF …101-2001-60167 114,241.49Motor Officer10/16-11/12/25 - BP #5 POLICE SERVICE219006RIVERSIDE COUNTY SHERIFF …101-2001-60169 41,562.71Dedicated Sargeants10/16-11/12/25 - BP #5 POLICE SERVICE219006RIVERSIDE COUNTY SHERIFF …101-2001-60170 27,235.20Dedicated Lieutenant10/16-11/12/25 - BP #5 POLICE SERVICE219006RIVERSIDE COUNTY SHERIFF …101-2001-60171 49,510.61Sheriff - Mileage10/16-11/12/25 - BP #5 POLICE SERVICE219006RIVERSIDE COUNTY SHERIFF …101-2001-60172 1,417.50Civic Center Lake Maintenan…01/2026 CIVIC CENTER LAKE MAINTENA…219007SOUTHWEST AQUATICS 101-3005-60117 1,417.50SilverRock Lake Maintenance01/2026 SRR LAKE MAINTENANCE SERV…219007SOUTHWEST AQUATICS 101-3005-60189 940.89Lot Cleaning/Gravel ProgramCRUSHED ROCK GRAVEL PROGRAM219008SOUTHWEST BOULDER & ST…101-6004-60120 99.93Office SuppliesGUILLOTINE TRIMMER219009STAPLES ADVANTAGE 101-3005-60400 89.68Office SuppliesOFFICE SUPPLIES219009STAPLES ADVANTAGE 101-1006-60400 27.80Citywide SuppliesBREAKROOM SUPPLIES219009STAPLES ADVANTAGE 101-1007-60403 33.91Office SuppliesFOLDERS219009STAPLES ADVANTAGE 101-1006-60400 9.56Office SuppliesCARD HOLDER PAGES219009STAPLES ADVANTAGE 101-1006-60400 30.60Office SuppliesFOLDERS219009STAPLES ADVANTAGE 101-1006-60400 -62.84Citywide SuppliesRETURN BREAKROOM SUPPLIES219009STAPLES ADVANTAGE 101-1007-60403 21.20Office SuppliesDESKPAD219009STAPLES ADVANTAGE 101-1006-60400 34.14Citywide SuppliesBREAKROOM SUPPLIES219009STAPLES ADVANTAGE 101-1007-60403 53.04Office SuppliesOFFICE SUPPLIES219009STAPLES ADVANTAGE 101-1006-60400 22.15Citywide SuppliesBREAKROOM SUPPLIES219009STAPLES ADVANTAGE 101-1007-60403 117.29Office SuppliesOFFICE SUPPLIES219009STAPLES ADVANTAGE 101-7001-60400 352.43Office SuppliesOFFICE SUPPLIES219009STAPLES ADVANTAGE 101-3002-60400 552.59Forms, Copier PaperCITYWIDE PRINTING PAPER219009STAPLES ADVANTAGE 101-1007-60402 112.03Office SuppliesOFFICE SUPPLIES219009STAPLES ADVANTAGE 101-7001-60400 139.80Office SuppliesOFFICE SUPPLIES219009STAPLES ADVANTAGE 101-6004-60400 50.00Community Experiences02/07/26 - INSTRUCTOR DEMO FOR WE…219010SUSAN ALEXANDRA BRAUC…101-3003-60149 14,535.85Landscape Contract01/2026 SRR EVENT PARK LANDSCAPE …219013VINTAGE ASSOCIATES 101-3005-60112 2,995.05Maintenance/Services11/10, 11/12, 11/18/25 CH ELECTRICAL …219014VINTAGE E & S INC 101-3008-60691 566.08Maintenance/Services11/25/25 - CH THREE RECEPTACLES REP…219014VINTAGE E & S INC 101-3008-60691 780.25Maintenance/Services1/20/26 PARK LIGHTING ELECTRICAL SE…219014VINTAGE E & S INC 101-3005-60691 Fund 101 - GENERAL FUND Total:1,464,284.03 Fund: 201 - GAS TAX FUND 983.14Electricity - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 201-7003-61101 79.23Uniforms1/1/2026 STREETS UNIFORM SERVICES218997MISSION LINEN SUPPLY 201-7003-60690 77.57Uniforms1/15/26 STREETS UNIFORM SERVICES218997MISSION LINEN SUPPLY 201-7003-60690 81.64Uniforms01/22/26 STREETS UNIFORM SERVICES218997MISSION LINEN SUPPLY 201-7003-60690 4,380.56Traffic Control SignsTRAFFIC SIGNS & MATERIALS219001PACIFIC PRODUCTS AND SER…201-7003-60429 290.63Traffic Control SignsTRAFFIC SIGNS219012TOPS' N BARRICADES INC 201-7003-60429 Fund 201 - GAS TAX FUND Total:5,892.77 Fund: 202 - LIBRARY & MUSEUM FUND 103.22Water - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…202-3006-61200 2,836.94Landscape Contract01/2026 LIBRARY PARKS LANDSCAPE MA…218980DESERT CONCEPTS CONSTR…202-3004-60112 1,773.25Landscape Contract01/2026 MUSEUM PARKS LANDSCAPE …218980DESERT CONCEPTS CONSTR…202-3006-60112 65 Demand Register Packet: APPKT04450 - 2026-01-30 RH PAYABLE PROCESS 2/9/2026 1:55:30 PM Page 3 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 2,745.00Electricity - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 202-3004-61101 Fund 202 - LIBRARY & MUSEUM FUND Total:7,458.41 Fund: 215 - LIGHTING & LANDSCAPING FUND 3,256.79Water - Medians - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…215-7004-61211 3,336.51Water - Medians - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…215-7004-61211 2,046.86Water - Medians - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…215-7004-61211 7,414.26Water - Medians - UtilitiesWATER SERVICE218979COACHELLA VALLEY WATER D…215-7004-61211 14,898.38Landscape Contract01/2026 L&L PARKS LANDSCAPE MAINT…218980DESERT CONCEPTS CONSTR…215-7004-60112 691.58Landscape Contract01/2026 VISTA CORTINA L&L LANDSCAP…218980DESERT CONCEPTS CONSTR…215-7004-60112 112,236.00Landscape Contract01/2026 L & L LANDSCAPE MAINTENAN…218980DESERT CONCEPTS CONSTR…215-7004-60112 23.14Electric - Medians - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 215-7004-61117 23.14Electric - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 215-7004-61116 563.99Electric - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 215-7004-61116 675.35Electric - Medians - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 215-7004-61117 2,810.70Electric - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 215-7004-61116 1,571.37Electric - Medians - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 215-7004-61117 208.72Electric - UtilitiesELECTRICITY SERVICE218990IMPERIAL IRRIGATION DIST 215-7004-61116 27.18Operating SuppliesOFFICE SUPPLIES219009STAPLES ADVANTAGE 215-7004-60420 5,257.23Landscape Contract01/2026 SRR PARK RETENTION BASIN L…219013VINTAGE ASSOCIATES 215-7004-60112 5,812.78SilverRock Way Landscape01/2026 SRR EVENT PARK L&L PERIMET…219013VINTAGE ASSOCIATES 215-7004-60143 Fund 215 - LIGHTING & LANDSCAPING FUND Total:160,853.98 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 621.25Design12/2025 - LQ CITYWIDE IRRIGATION DES…218989HERMANN DESIGN GROUP I…401-0000-60185 77,144.35Design M&O YARD DESIGN218992JSL ARCHITECTURE, INC.401-0000-60185 19,304.00Design M&O YARD DESIGN218992JSL ARCHITECTURE, INC.401-0000-60185 805.20Technical1-1-1/14/26 FB PARK IMPROVEMENTS …218994LANDMARK CONSULTANTS, …401-0000-60108 9,873.75Technical11/2025 - FB PARK ONCALL SURVEY SER…218999MSA CONSULTING INC 401-0000-60108 27,105.00Technical12/2025 - FB PARK ONCALL SURVEY SER…218999MSA CONSULTING INC 401-0000-60108 1,426.17ConstructionTRAFFIC SIGNAL BACKUP BATTERIES219004POWERSTRIDE BATTERY CO.401-0000-60188 2,726.15Design11/01-12/31/25 - CULTURAL CAMPUS P…219011TERRA NOVA PLANNING & R…401-0000-60185 5,625.00Design12/2025 VILLAGE PARKING SURVEY219015WALKER CONSULTANTS 401-0000-60185 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:144,630.87 Fund: 502 - INFORMATION TECHNOLOGY 168.08Cable/Internet - Utilities01/15-02/14/26 WC Cable (3301)218978CHARTER COMMUNICATIONS…502-0000-61400 4,500.00Prepaid Expense07/01/2026-12/31/2026 PENSION MO…218987GOVINVEST INC 502-0000-13600 4,500.00Prepaid Expense07/01/2026-12/31/2026 OPEB MODULE218987GOVINVEST INC 502-0000-13600 4,500.00Software Licenses01/01/2026-06/30/2026 OPEB MODULE218987GOVINVEST INC 502-0000-60301 4,500.00Software Licenses01/01/2026-06/30/2026 PENSION MO…218987GOVINVEST INC 502-0000-60301 Fund 502 - INFORMATION TECHNOLOGY Total:18,168.08 Fund: 601 - SILVERROCK RESORT 49.28Bank Fees12/2025 - SRR EXCESS PREMISE TIME218986GARDAWORLD 601-0000-60455 Fund 601 - SILVERROCK RESORT Total:49.28 Grand Total:1,801,337.42 66 Demand Register Packet: APPKT04450 - 2026-01-30 RH PAYABLE PROCESS 2/9/2026 1:55:30 PM Page 4 of 5 Fund Summary Fund Expense Amount 101 - GENERAL FUND 1,464,284.03 201 - GAS TAX FUND 5,892.77 202 - LIBRARY & MUSEUM FUND 7,458.41 215 - LIGHTING & LANDSCAPING FUND 160,853.98 401 - CAPITAL IMPROVEMENT PROGRAMS 144,630.87 502 - INFORMATION TECHNOLOGY 18,168.08 601 - SILVERROCK RESORT 49.28 Grand Total:1,801,337.42 Account Summary Account Number Account Name Expense Amount 101-0000-13600 Prepaid Expense 7,621.00 101-1002-60351 Membership Dues 7,921.00 101-1004-50252 Annual Wellness Dollar …71.84 101-1004-60322 Training & Education/M…3,190.80 101-1004-60340 Employee Recognition E…1,409.40 101-1005-60420 Operating Supplies 152.25 101-1006-60400 Office Supplies 237.99 101-1007-60402 Forms, Copier Paper 552.59 101-1007-60403 Citywide Supplies 202.34 101-1007-60470 Postage 3,500.00 101-2001-60161 Sheriff Patrol 693,045.88 101-2001-60162 Police Overtime 34,979.01 101-2001-60163 Target Team 155,203.40 101-2001-60164 Community Services Offi…62,567.93 101-2001-60166 Gang Task Force 17,499.20 101-2001-60167 Narcotics Task Force 17,499.20 101-2001-60169 Motor Officer 114,241.49 101-2001-60170 Dedicated Sargeants 41,562.71 101-2001-60171 Dedicated Lieutenant 27,235.20 101-2001-60172 Sheriff - Mileage 49,510.61 101-2001-60174 Blood/Alcohol Testing 2,214.00 101-2002-60112 Landscape Contract 5,125.00 101-2002-61101 Electricity - Utilities 1,874.87 101-2002-61200 Water - Utilities 204.78 101-2002-61304 Mobile/Cell Phones/Sate…608.39 101-2002-61400 Cable/Internet - Utilities 279.94 101-3002-60400 Office Supplies 352.43 101-3003-60149 Community Experiences 200.00 101-3003-60157 Rental Expense 461.00 101-3005-60112 Landscape Contract 95,818.95 101-3005-60117 Civic Center Lake Maint…1,417.50 101-3005-60189 SilverRock Lake Mainten…1,417.50 101-3005-60400 Office Supplies 99.93 101-3005-60554 LQ Park Water Feature 2,163.00 101-3005-60690 Uniforms 132.47 101-3005-60691 Maintenance/Services 1,230.25 101-3005-61103 Electric - Civic Center Pa…1,725.31 101-3005-61105 Electric - Fritz Burns Park…554.12 101-3005-61111 Electric - Velasco Park - …26.98 101-3005-61115 Electric - SilverRock Even…3,496.55 101-3005-61202 Water - Civic Center Park…2,031.66 101-3005-61203 Water -Eisenhower Park …989.83 101-3005-61204 Water -Fritz Burns Park -…2,013.67 101-3005-61205 Water -Velasco Park - Uti…168.66 101-3005-61208 Water -Seasons Park - Ut…29.50 101-3005-61209 Water -Community Park …1,727.41 101-3005-61300 Telephone - Utilities 63.09 101-3007-60461 Marketing & Tourism Pr…33,564.22 67 Demand Register Packet: APPKT04450 - 2026-01-30 RH PAYABLE PROCESS 2/9/2026 1:55:30 PM Page 5 of 5 Account Summary Account Number Account Name Expense Amount 101-3008-60690 Uniforms 105.96 101-3008-60691 Maintenance/Services 3,561.13 101-3008-61101 Electricity - Utilities 2,495.44 101-3008-61102 Electricity - Charging Stat…1,096.84 101-3008-61200 Water - Utilities 1,245.78 101-6003-60118 Plan Checks 6,747.50 101-6004-60120 Lot Cleaning/Gravel Prog…940.89 101-6004-60400 Office Supplies 139.80 101-7001-60400 Office Supplies 229.32 101-7003-60420 Operating Supplies 1,488.90 101-7003-60432 Tools/Equipment 642.13 101-7003-60691 Maintenance/Services 47,350.00 101-7006-60146 PM 10 - Dust Control 45.49 201-7003-60429 Traffic Control Signs 4,671.19 201-7003-60690 Uniforms 238.44 201-7003-61101 Electricity - Utilities 983.14 202-3004-60112 Landscape Contract 2,836.94 202-3004-61101 Electricity - Utilities 2,745.00 202-3006-60112 Landscape Contract 1,773.25 202-3006-61200 Water - Utilities 103.22 215-7004-60112 Landscape Contract 133,083.19 215-7004-60143 SilverRock Way Landsca…5,812.78 215-7004-60420 Operating Supplies 27.18 215-7004-61116 Electric - Utilities 3,606.55 215-7004-61117 Electric - Medians - Utilit…2,269.86 215-7004-61211 Water - Medians - Utiliti…16,054.42 401-0000-60108 Technical 37,783.95 401-0000-60185 Design 105,420.75 401-0000-60188 Construction 1,426.17 502-0000-13600 Prepaid Expense 9,000.00 502-0000-60301 Software Licenses 9,000.00 502-0000-61400 Cable/Internet - Utilities 168.08 601-0000-60455 Bank Fees 49.28 Grand Total:1,801,337.42 Project Account Summary Project Account Key Expense AmountProject Account Name Project Name **None**1,358,202.06**None****None** 201805D 96,448.35Design Expense Corporate Yard Admin Offices & Crew Quarters 201901D 2,726.15Design Expense Village Art Plaza Promenade & Cultural Campus 202102T 37,783.95Technical Expense Fritz Burns Park Improvements 202328A 118,052.58DIR 20240538984 Regular Mainte…Citywide Landscape Maintenance Srvcs (L&L AD 89-1) 202330A 100,791.67DIR 20240538986 Regular Mainte…Park Landscape Maintenance Services 202331E 25,605.86SilverRock Landscape Maintenance…SilverRock Landscape Maintenance Services 202415D 621.25Design Expense Citywide Irrigation Upgrade 202424E 2,163.00Pool & Water Feature Maintenance Pool & Water Feature Maintenance 202425E 4,341.38On-Call Electrical Services On-Call Electrical Services 202513E 5,625.002025 Parking Study for Village Buil…2025 Parking Study for Village Build-Out Plan 202515E 47,350.00FY 25/26 Offset Removal FY 25/26 Offset Removal 2526TMICT 1,426.17Construction Expense FY25/26 Traffic Maintenance Improvements WELLE 200.00Wellness Day Expense Wellness Day Grand Total:1,801,337.42 *Project codes are generally used to track Capital Improvement Program (CIP) projects, other large public works projects, developer deposits, or city-wide events. Normal operational expenditures are not project coded and, therefore, will report as "none" in this section. 68 City of La Quinta Bank Transactions 01/19/2026-01/30/2026 Wire Transaction Listed below are the wire transfers from 01/19/2025-01/30/2026. 01/20/2026 - WIRE TRANSFER - EXPERT PAY $48.46 01/20/2026 - WIRE TRANSFER - CALPERS $7,445.63 01/20/2026 - WIRE TRANSFER - CALPERS $16,335.04 01/20/2026 - WIRE TRANSFER - CALPERS $39,359.97 01/21/2026 - WIRE TRANSFER - STERLING $2,142.91 01/21/2026 - WIRE TRANSFER - CALPERS $5,258.04 01/22/2026 - WIRE TRANSFER - LANDMARK $299,829.08 01/26/2026 - WIRE TRANSFER - AMERITAS $34.60 01/26/2026 - WIRE TRANSFER - AMERITAS $96.80 01/26/2026 - WIRE TRANSFER - AMERITAS $757.69 01/26/2026 - WIRE TRANSFER - STANDARD OF OREGON $3,752.92 01/26/2026 - WIRE TRANSFER - LINCOLN NATIONAL $6,689.64 01/26/2026 - WIRE TRANSFER - AMERITAS $15,648.64 TOTAL WIRE TRANSFERS OUT $397,399.42 ATTACHMENT 2 69 70 City of La Quinta CITY COUNCIL MEETING: February 17, 2026 STAFF REPORT AGENDA TITLE: INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING SECTIONS 1.01.003 AND 12.20.020 OF THE LA QUINTA MUNICIPAL CODE RELATED TO CONFORMING AND CORRECTIVE REVISIONS GOVERNING CONTENTS OF CODE AND SPEED LIMITS REGULATIONS RESPECTIVELY RECOMMENDATION A) Move to take up Ordinance No. ___ by title and number only and waive further reading. B) Move to introduce at first reading, Ordinance No. ___ amending the La Quinta Municipal Code: (1) Section 1.01.003 related to Contents of Code and (2) Section 12.20.020 related to Speed Limits regulations. EXECUTIVE SUMMARY Staff periodically reviews the La Quinta Municipal Code (LQMC) and proposes amendments to align the LQMC with current State laws, apply best practices, consolidate provisions, remove unnecessary detail, provide for flexibility, and update or clarify terms, requirements, and regulations as needed. Proposed are minor amendments to LQMC Section 1.01.003 “Contents of code” and Section 12.20.020 “Authority to regulate speed” regulations to provide clarity and align the code with State law. If Council introduces this ordinance at first reading, it will be brought back for adoption at the March 3, 2026, meeting. FISCAL IMPACT – None. BACKGROUND/ANALYSIS Staff periodically reviews the La Quinta Municipal Code (LQMC) and proposes amendments to align the LQMC with current State laws, apply best practices, consolidate provisions, remove unnecessary detail, provide for flexibility, and update or clarify terms, requirements, and regulations as needed. BUSINESS SESSION ITEM NO. 1 71 Proposed for Council’s consideration are the following minor LQMC amendments: Section 1.01.003 related to “Contents of code” lists the types of ordinances, of general and permanent nature, to be codified into the LQMC; the list is being amended to clarify that speed limits adopted via an ordinance will not be added to the municipal code. Section 12.20.020 related to the “Authority to regulate speeds” is amended to align its language with State laws and to clarify that Council may adopt speed limits via an ordinance or resolution. If Council introduces this ordinance at first reading, it will be brought back for adoption at the March 3, 2026, meeting, and it will go into effect 30 days after adoption. ALTERNATIVES Staff does not recommend an alternative. Prepared by: Monika Radeva, City Clerk Approved by: Jon McMillen, City Manager 72 ORDINANCE NO. XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SECTIONS 1.01.003 AND 12.20.020 OF THE LA QUINTA MUNICIPAL CODE RELATED TO CONFORMING AND CORRECTIVE REVISIONS GOVERNING CONTENTS OF CODE AND SPEED LIMITS REGULATIONS RESPECTIVELY WHEREAS, amendments to the La Quinta Municipal Code are proposed from time to time to align the code with current state laws, apply best practices, consolidate provisions, remove unnecessary detail, provide flexibility, and update and clarify terms, requirements, and regulations as needed; and WHEREAS, Section 1.01.003 “Contents of code” lists the types of ordinances, of general and permanent nature, to be codified in the La Quinta Municipal Code, and the proposed amendment clarifies that speed limits adopted via an ordinance will not be added to the code; and WHEREAS, the California Vehicle Code authorizes cities to establish and regulate speed limits on street segments within its exclusive jurisdiction; and WHEREAS, pursuant to such authority, the City Council adopts speed limits as recommended by engineering and traffic surveys evaluating highway and traffic conditions in accordance with methods determined by the Department of Transportation for use by state and local authorities; and WHEREAS, the proposed amendment to Section 12.20.020 “Authority to regulate speeds” aligns the La Quinta Municipal Code with state laws and clarifies that the City Council may adopt speed limits via ordinance or resolution. NOW, THEREFORE, the City Council of the City of La Quinta does ordain as follows: SECTION 1. Sections 1.01.003 and 12.20.020 of the La Quinta Municipal Code shall be amended as written in “Exhibit A” attached hereto and incorporated herein by this reference. SECTION 2. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after its adoption. SECTION 3. POSTING: The City Clerk shall, within 15 days after passage of this Ordinance, cause it to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the permanent record of Ordinances of the City of La Quinta. 73 Ordinance No. XXX LQMC Amendments – Sections 1.01.003 and 12.20.020 Adopted: __________ XX, 2026 Page 2 of 4 SECTION 4. CORRECTIVE AMENDMENTS: the City Council does hereby grant the City Clerk the ability to make minor amendments and corrections of typographical or clerical errors to “Exhibit A” to ensure consistency of all approved text amendments prior to the publication in the La Quinta Municipal Code. SECTION 5. SEVERABILITY: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional. PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this _____ day of ___________, 2026, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: _________________________ MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 74 Ordinance No. XXX LQMC Amendments – Sections 1.01.003 and 12.20.020 Adopted: __________ XX, 2026 Page 3 of 4 EXHIBIT A 1.01.003 Contents of code. The La Quinta Municipal Code shall consist of all ordinances adopted by the city council which are of general and permanent nature. An ordinance relating to any of the following subject matters is not considered an ordinance of general and permanent nature and need not be included within the municipal code: A. The naming of streets or roads; B. Granting, altering, or withdrawing franchises; C. Levying real property tax; D. Calling an election; E. Annexation proceedings; F. Interim zoning measures; G. Zoning or rezoning a particular parcel of property; H. Development agreements; I.Speed limits J. Such other ordinances of a special or particular subject matter which the council considers are not appropriate to a general compilation of laws of a general and permanent nature. 12.20.020 Authority to regulate speeds. A. Upon the basis of an engineering and traffic investigation, the city council by ordinance or resolution, may decrease maximum speed limits at intersections adjacent to parks and outside urban districts and increase limits within urban districts. B. Upon the basis of an engineering and traffic survey, the city council by ordinance or resolution may determine the maximum speed limits on arterial streets. C. Speed limits established pursuant to this section shall be applicable at all or such times as shall be indicated by official traffic control devices. 75 Ordinance No. XXX LQMC Amendments – Sections 1.01.003 and 12.20.020 Adopted: __________ XX, 2026 Page 4 of 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LA QUINTA ) I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. ___ which was introduced at a regular meeting on the _____ day of ______, 2026, and was adopted at a regular meeting held on the ____ day of ______, 2026, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in the Rules of Procedure adopted by City Council Resolution No. 2022-027. ________________________ MONIKA RADEVA, City Clerk City of La Quinta, California DECLARATION OF POSTING I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on , 2026, pursuant to Council Resolution. ________________________ MONIKA RADEVA, City Clerk City of La Quinta, California 76 City of La Quinta CITY COUNCIL MEETING: February 17, 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 was presented to the Financial Advisory Commission (FAC) on February 11, 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. 2 77 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 78 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 reported both by major fund type and on a government-wide basis, which allows for a complete understanding of the City’s finances, though the information can be complex to interpret without appropriate context. 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. •General Fund Reserves are 100% funded to established target amounts for FY 2024/25 representing a combined balance of $45 million. ATTACHMENT 1 79 •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% 80 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 81 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. 82 EXHIBIT A 83 CITY OF LA QUINTA, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2025 84 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 85 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 86 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 87 INTRODUCTORY SECTION i 88 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. ii 89 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. iii 90 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 iv 91 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 v 92 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 vi 93 vii 94 Organizational Chart of City Departments viii 95 FINANCIAL SECTION 1 96 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. 2 97 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 3 98 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 4 99 5 100 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. 6 101 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. 7 102 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. 8 103 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. 9 104 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. 10 105 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. 11 106 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. 12 107 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: 13 108 •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) 14 109 •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. 15 110 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 16 111 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. 17 112 BASIC FINANCIAL STATEMENTS 18 113 GOVERNMENT-WIDE FINANCIAL STATEMENTS 19 114 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 20 115 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 21 116 $ (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 22 117 FUND FINANCIAL STATEMENTS 23 118 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 24 119 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 25 120 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 26 121 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 27 122 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 28 123 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 29 124 PROPRIETARY FUND FINANCIAL STATEMENTS 30 125 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 31 126 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 32 127 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 33 128 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 34 129 FIDUCIARY FUND FINANCIAL STATEMENTS 35 130 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 36 131 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 37 132 Notes to The Basic Financial Statements 38 133 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 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 39 134 • 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 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 40 135 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 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 41 136 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 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 42 137 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 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 43 138 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 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 44 139 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 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 45 140 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 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 46 141 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 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 47 142 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) 48 143 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) 49 144 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) 50 145 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) 51 146 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) 52 147 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) 53 148 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 54 149 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 55 150 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) 56 151 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 57 152 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) 58 153 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 59 154 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) 60 155 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) 61 156 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) 62 157 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) 63 158 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) 64 159 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) 65 160 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) 66 161 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 67 162 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) 68 163 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 69 164 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) 70 165 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 71 166 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) 72 167 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) 73 168 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) 74 169 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) 75 170 REQUIRED SUPPLEMENTARY INFORMATION 76 171 BUDGETARY COMPARISON SCHEDULES 77 172 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 78 173 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 79 174 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 80 175 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 81 176 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 82 177 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 83 178 This page left intentionally blank. 84 179 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 85 180 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 86 181 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 87 182 SUPPLEMENTARY INFORMATION: Combining and Individual Fund Schedules 88 183 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 89 184 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 90 185 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 91 186 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 92 187 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 93 188 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 94 189 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 95 190 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 96 191 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 97 192 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 98 193 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 99 194 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 100 195 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 101 196 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 102 197 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 103 198 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 104 199 BUDGETARY COMPARISON SCHEDULES - SPECIAL REVENUE FUNDS 105 200 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 106 201 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 107 202 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 108 203 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 109 204 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 110 205 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 111 206 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 112 207 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 113 208 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 114 209 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 115 210 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 116 211 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 117 212 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 118 213 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 119 214 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 120 215 BUDGETARY COMPARISON SCHEDULES – CAPITAL PROJECT FUNDS 121 216 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 122 217 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 123 218 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 124 219 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 125 220 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 126 221 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 127 222 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 128 223 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 129 224 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 130 225 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 131 226 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 132 227 BUDGETARY COMPARISON SCHEDULES – DEBT SERVICE FUNDS 133 228 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 134 229 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 135 230 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 136 231 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 137 232 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 138 233 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 139 234 STATISTICAL SECTION 140 235 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. 141 236 FINANCIAL TRENDS 142 237 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 143 238 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 144 239 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 145 240 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) 146 241 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 147 242 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 148 243 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 149 244 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 150 245 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 151 246 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 152 247 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 153 248 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 154 249 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 155 250 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% 156 251 REVENUE CAPACITY INFORMATION 157 252 Tax Revenue by Source 158 253 Top 25 Bradley-Burns Sales Tax Producers 159 254 Top 25 Measure G Sales Tax Producers 160 255 Taxable Sales by Category 161 256 Taxable Sales by Category 162 257 Assessed Value of Taxable Property 163 258 Direct and Overlapping Property Tax Rates 164 259 Principal Property Taxpayers 165 260 Property Tax Levies and Collections 166 261 This page left intentionally blank. 167 262 DEBT CAPACITY INFORMATION 168 263 Ratios of Outstanding Debt by Type 169 264 Ratios of Outstanding Debt by Type 170 265 Ratios of General Bonded Debt Outstanding 171 266 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. 172 267 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 173 268 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 174 269 Pledged-Revenue Coverage 175 270 DEMOGRAPHIC AND ECONOMIC INFORMATION 176 271 Demographic and Economic Statistics 177 272 Principal Employers 178 273 Full-time City Employees by Function 179 274 OPERATING INFORMATION 180 275 Operating Indicators by Function 181 276 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. 182 277 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 183 278 279 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 2 280 •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. 281 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. 282 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 283 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. 284 City of La Quinta CITY COUNCIL MEETING: February 17, 2026 STAFF REPORT AGENDA TITLE: DISCUSS STRIPING REVISIONS FOR EASTBOUND HIGHWAY 111 AT WASHINGTON STREET RECOMMENDATION Discuss potential striping revisions for eastbound Highway 111 at Washington Street. EXECUTIVE SUMMARY The City recently completed the Highway 111 Pavement Rehabilitation Project No. 2022-25, which included corridor-wide striping revisions consistent with the Highway 111 Corridor Plan and the addition of bike lanes. At the western city limits, striping transitions were designed to match the City of Indian Wells configuration, resulting in two eastbound through lanes and a buffered bike lane. Following project completion, residents have raised concerns regarding driver confusion related to the new striping configuration near Washington Street and the Plaza La Quinta driveway. Staff met with concerned residents and the Police Department and conducted field reviews to evaluate traffic operations and driver behavior. Based on this review, staff developed and evaluated several striping and design alternatives to address safety and operational concerns while maintaining compliance with adopted plans and design standards. Staff seeks Council direction on a preferred path forward. FISCAL IMPACT Depending on Council direction, future costs may be associated with design, striping modifications, or construction of physical improvements. Potential construction elements could be incorporated into an already planned Community Development Block Grant (CDBG) funded driveway reconstruction project adjacent to the project area with additional funding recommended from Highway 111 Corridor Project No. 2019-05. STUDY SESSION ITEM NO. 1 285 BACKGROUND/ANALYSIS The City recently completed the Highway 111 Pavement Rehabilitation project from west of Washington Street to Jefferson Street, which included pavement rehabilitation and updated striping consistent with the Highway 111 Corridor Plan. As part of this effort, striping was revised corridor-wide to include bike lanes and improved multimodal accommodations. At the western city limits, the design transitions to match the City of Indian Wells configuration, which includes two eastbound through lanes and a buffered bike lane. This two-lane configuration was carried eastbound through Washington Street and includes:  Two eastbound through lanes  A buffered bike lane  A right-turn pocket at the non-signalized Plaza La Quinta driveway  Dual right-turn pockets at Washington Street  Dual left-turn pockets at Washington Street In accordance with the California Manual on Uniform Traffic Control Devices (CAMUTCD), the buffered bike lane was striped to the left of the right-turn pockets. A striped gore area was also added at the Plaza La Quinta driveway to discourage vehicles from traveling straight through the right-turn pocket to access the Washington Street intersection. This configuration represents a change from the previous condition, which included three eastbound through lanes, a shoulder stripe at the driveway, and no bike lane. Following project completion, residents have expressed concerns about confusion related to the new striping, particularly near the Plaza La Quinta driveway and the Washington Street intersection. In response, staff met with concerned residents and the Police Department and conducted field observations to evaluate traffic patterns and driver behavior. Based on these reviews, staff identified two primary issues: 1. The opening of the right-turn pocket at the Plaza La Quinta driveway is located relatively close to the Washington Street intersection, leading some drivers to believe it is the only opportunity to move right for the intersection turn movement. 2. Drivers who recognize that there is a second downstream opening are concerned about being cut off by vehicles entering early, which results in additional drivers entering the right-turn pocket earlier than intended. Staff also observed vehicles driving through the striped gore area, indicating that the current striping alone is not providing sufficient visual or physical guidance to influence desired driver behavior. 286 OPTIONS CONSIDERED Staff evaluated several options to address the observed concerns. Striping-only modifications that retain a bike lane were not recommended, as they would either require deviation from CAMUTCD standards or introduce additional conflict zones between vehicles and cyclists. Option 1 – Cycle-track – staff recommended This option would include construction of a raised curb along the bike lane to physically separate vehicles and cyclists. Cyclists would transition from the roadway to the sidewalk via a bike ramp at the intersection, eliminating the conflict zone created when bike lanes are placed to the left of right-turn pockets.  Allows striping to closely resemble the original configuration, while maintaining two eastbound through lanes.  Requires construction of a cycle-track and modification of the curb return at Washington Street.  Could be incorporated into a planned CDBG-funded project to reconstruct the Plaza La Quinta driveway south of Highway 111 to meet Americans with Disabilities Act (ADA) standards.  Remains consistent with the Highway 111 Corridor Plan while improving clarity and safety. Option 2 – Re-stripe to Original Configuration This option would return the roadway to three eastbound through lanes with no bike lane.  Not recommended, as it would create an isolated segment inconsistent with the Highway 111 Corridor Plan.  Eliminates recently implemented multimodal improvements. Option 3 – Maintain Existing Striping This option would leave the current configuration in place.  Not recommended, as driver confusion persists.  Drivers are continuing to disregard striped gore areas, reducing the effectiveness of the design. 287 ADDITIONAL CONSIDERATIONS The City continues to coordinate with the City of Indian Wells on a potential multi-purpose path connection to the CV Link. If that regional path is finalized in the future, staff would still recommend implementation of Option 1 to allow cyclists to remain on Highway 111 when accessing the La Quinta commercial corridor. NEXT STEPS Staff will proceed based on Council direction received during this study session and return with recommended actions, design concepts, and cost estimates as appropriate. Prepared by: Ubaldo Ayón, Jr., Assistant Construction Manager Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Options Arial Overview 288 ATTACHMENT 1: OPTIONS AERIAL OVERVIEW OPTION 1 -STAFF RECOMMENDED: CYCLE-TRACK ATTACHMENT 1 OF 3 289 290 291 292 DEPARTMENTAL REPORT ITEM NO. 4 COMMUNITY SERVICES QUARTERLY REPORT Wellness Center, LQ Library, LQ Museum, and Creation Station October 1 – December 31, 2025 Community Programs & Social Services Wellness Center, FIND Food Distribution, Fritz Burns Pool, & Sports Wellness Center provided fitness and recreation programs to 15,564 participants/fitness members (14,289 fitness gym participants; and 1,275 program participants for SRR Resident Cards, Seasonal Luncheons, Tai Chi, Deep Stretch, Yoga, Pilates, Sound Bath, Stretch and Flex, PIYO, Ballroom Dance, Social Bridge, Monday Movies, Mah Jongg, Ukulele, Dominoes, Quilting for Good Times, and Walking Club). Social service offerings such as the Riverside County Cool/Warm Center and HICAP were available to the public. Desert Recreation District (DRD) served 1,511 participants (684 for open/lap swim, youth swim lessons, Adaptive Swim lessons; and Parent & Me lessons; 228 Water Aerobics; 564 Senior Splash; 17 Floating Pumpkin Patch; and 18 Poolside with Santa) at Fritz Burns Pool programs/classes. Programs have been temporarily moved to Pawley Pool in Indio during the Fritz Burns Park improvements project. DRD has provided an activities report for November and December for the programs that are taking place at Pawley Pool (see attachment page 2- 5). Youth sports programs had 37,995 total participants (players, spectators, coaches) for AYSO (soccer – 27,000), Friday Night Lights (flag football – 1,375), and La Quinta Youth Sports Association (baseball/softball – 9,620). Practices and league games are held at La Quinta Park, Colonel Mitchell Paige Middle School, and the La Quinta Sports Complex. Open Court Time volleyball and basketball programs, a City of La Quinta partnership with Desert Recreation District, had a total of 371 participants at the La Quinta Boys & Girls Club Gym. In partnership with FIND Food Bank, distributed 27,885 pounds of food (food packages/boxes of dry goods and produce) to 1,056 persons at Coral Mountain, Hadley Villas, Vista Dunes, Washington Street Apartments, and Wolff Waters; FIND also provides mobile pantries for food distribution two times per month at Horizon High School and La Quinta Library Parking Lot. 293 Monthly Swim & Water Activities Report Template 1.General Information •Organization/Facility Name: Desert Recreation District •Reporting Period: (November) •Prepared By: Kyle Pleming •Date Submitted: 12/02/25 2.Summary of Activities All Activities scheduled at The Fritz Burns Pool Transferred over to Pawley Pool. Activities include Senior Splash, Water Aerobics, Youth Swim Lessons, Open Swim and Lap Swim. 3.Attendance Overview 294 4.Demographic 5.Challenges & Recommendations •Challenges encountered this month: Moving all equipment and supplies over to Pawley with only a 1-day gap between closing Fritz Burns Pool and Opening Pawley Pool. The move was successful, and all programs ran smoothly. 6.Upcoming Programs & Events Pool Side with Santa Saturday December 13 th. 7.Community Feedback Rhonda North Schumacher - As senior water aerobics is a wonderful helpful exercise! Kyle and staff are great. Very kind and helpful. We need this pool while Frit Burns is under construction. Our group has been together for a long time. We appreciate that we have Pawley ❣️ it’s also fun and a nice way to be with friends we’ve made over the years. Thank you. I’ve participated for over 6 years. Kathie Wood - It is so nice to have an alternative to our La Quinta pool! While the drive is longer for many, it's wonderful to still be able to have our terrific classes! Nacy Edney - Thank you Kyle for asking for our input. The pool is great at Pawley but I know all of us will be happy to get back to our own pool eventually. I believe most of us are 295 now and can’t attend so don’t count them out. A few are going to have some surgeries and won’t be able to attend for a while, but it has nothing to do with the change of pools. Don’t give up on us! Annette Gardara - The new location is nice, it is clean, the employees are very helpful. Senior Splash Lap Swim 296 Monthly Swim & Water Activities Report Template 1.General Information •Organization/Facility Name: Desert Recreation District •Reporting Period: December •Prepared By: Kyle Pleming, Nicholas Torres •Date Submitted: 01/07/2025 2.Summary of Activities All Activities scheduled at The Fritz Burns Pool Transferred over to Pawley Pool. Activities include Senior Splash, Water Aerobics, Youth Swim Lessons, Open Swim and Lap Swim. 3.Attendance Overview Dec-25 Dec-24 Total Change Adut Open Swim 193 172 21 Child Open Swim 12 7 5 Water Aerobics (Enrolled) 11 12 -1 Water Aerobics (Drop-In) 40 58 -18 Senior Splash (Enrolled) 28 40 -12 Senior Splash (Drop-In) 157 130 27 Guppies (Mo-Th) 0 1 -1 Parent & Me (Mo-Th) 0 0 0 Guppies (Sa) 0 NA NA Penguins 1 (Sa) 0 NA NA Parent & Me (Sa) 0 NA NA Adaptive Swim Lessons NA NA NA Poolside with Santa 0 18 -18 297 4.Demographic Water Aerobics Senior Splash Bermuda Dunes Coachella Indian Wells Indio 2 3 La Quinta 8 22 Palm Desert 1 Other 3 Total 11 28 5.Challenges & Recommendations •Challenges encountered this month: December is our slowest month of programming as holidays and weather effect daily pool use and registration. Due to low enrollment Poolside with Santa was cancelled. 6.Upcoming Programs & Events Lifeguard Workshops beginning Saturdays at 11am. 7.Community Feedback Feedback has remained positive. Numbers have remained steady during this slow month. 298 La Quinta Library •Attendance: 25,700+ persons visited and participated in various programs; 42,900+ items were circulated; 8,000+ participated in various programs, meetings, and events. During this quarter there were 5,679 reference questions, 1,507 computer sessions, and 15,330 wireless sessions. •Events: Festival of Frights and Snowed In at the Library. •Programs: Baby/Toddler Storytimes (includes Saturdays); Sensory Hour, Teen Anime Café, Level Up LQ, Graphic Novel Club, Read the World, Pagemaster's Book Club, Page Turners Book Club, Chess Club, Culinary Kids, Gardening Club, and Japanese Culture Club. Circulation/ Programs/ Events 299 LQ Library staff participated in a Family Fall event at SilverRock Park. Participants enjoying teen programs at the LQ Library. 300 La Quinta Creation Station •Attendance: 1,852 people visited/participated in various programs/services. •Memberships: 18 new memberships; 92 active memberships. •Programs: MakerCraft (Pepakura Pumpkin Mask; Dia de lo Muertos 3D Printed Sugar Skull Painting; Winter Carnival Games), Maker’s Tabletop: The Wild Sheep Chase Campaign; Youth Maker’s Guild: The Modly Library; Ozobots After School (Trick-Or-Treat; Back-2-Basics; Snowplow), MakerSpace Camps (Electronic Spooky Mirror; 3D Printing & TinkerCAD) and FAB-Tastic! (Crochet Club; PLA Recycling). •Social Media Reach: 751 Facebook Followers; 3,577 Facebook Views; 1,050 Instagram Followers; 8,883 Instagram Views; 163 YouTube Subscribers; and 129 Threads. Makerspace Programs/Services/Memberships 301 La Quinta Museum •Attendance: 1,946 visitors/participants. •Exhibits: Abandoned Planes, Trains, and Automobiles; Monstras!; Brilliant Expanses/ Fading Vision; LQ Legends: The Fisherman Steps; Dia De Muertos Cigar Box Alters; Spotlight: Hearing the Ancestors. •Events: Music at the Museum (Las Tías; Kimberly Cofer and the Tumbleweeds); Lecture: Thriving Salton Sea Communities from Alianza Coachella Valley; La Quinta Historical Society Lecture: Postcards from the Desert; Artist Reception: Ken Lee; Dia de Muertos Workshop; Torres Martinez Tribal Creation Story & Bird Singing; Annual Historic Casita Lighting; Autumn Art Party; Franklin Elementary Field Trip (4th grade). •Programs: Good Books in the Gallery Book Club (The Haunting of Alejandra by V. Castro; Ties That Bind by Dave Isay; and December Book Exchange), Break with Huell, Genealogy Club, Sketchbook Journaling, STITCH, TED Talk Meet Up, and Mindful Art Workshop. •Social Media Promotion: Friday Fun Facts and Exhibit Content is shared via social media with Facebook (2.7K followers), Twitter, Instagram (5,188 followers), and YouTube (104 subscribers). Exhibits/Programs/Events 302 Community Events LQ Fall Festival @ La Quinta Park •The first annual LQ Fall Festival was held on Friday, October 17 at La Quinta Park from 5:00- 9:00 p.m. This outdoor event included food trucks, activities, interactive games/inflatables, and live music provided by the Chico Band. •Approximately 2,000+ persons in attendance. Participation from Mayor and Councilmembers, along with La Quinta Neighborhood Watch, La Quinta High School AJROTC, and some members from the La Quinta Youth Collective. •Vendor and food truck participants included AK Johnston, Balloon Casita, Bright Event Rentals, Emerald Isle Entertainment, Party Life photobooth, Enchanted Memories, Arty Party, Uncle D’s, FatBoy Tacos, Kettle-Mitas Inc., The Big Easy Sandwich, Tacontodo, The Stand, Tops N Barricades, Cruising Cones, LLC.303 LQ Fall Festival @ La Quinta Park 304 Community Events Veterans Recognition Ceremony @ Civic Center Campus •The Veterans Recognition Ceremony was held on Monday, November 11, to honor and recognize 20 veterans and former honorees in the branches of the United States Air Force, Army, Coast Guard, Marines, and Navy. Guest speakers included Retired Lt. Col Peter Shaner (United States Navy, the U.S. Air Force, and the Air National Guard) and Cadet Major Ethan Mille (Air Force Junior ROTC La Quinta High School) provided words of wisdom, pride for serving their country, and a youthful perspective for those considering military services after graduating from high school. •Gold Star Family recognition to honor Staff Sgt, James Perez, US Army and Cpl. Hunter Lopez, U.S. Marine Corps. •A flyover was provided by the Palm Springs Air Museum, American Flag quilts provided by the Ophelia Project, the Pledge of Allegiance was led by Scouts from Sunrise District: Scouting America Troops 1701 & 451, and the presentation of colors was provided by La Quinta High School Air Force JROTC Honor Guard. Mayor and Councilmembers provided words of recognition for all veterans along with Lt. Nicolas Lingle from the Riverside County Sheriff’s Department. •Musical performances were provided by La Quinta High School Wind Ensemble. Vendor participation included AK Johnston, Blooming Florist, Desert Rodeo, DV Rentals and Xpress Graphics. •A Fallen Solider Table was displayed throughout November at the La Quinta Museum to honor those who are no longer with us. La Quinta City Hall also has a flag retirement box, located in the south parking lot, available for residents and visitors to properly discard their worn U.S. Flags.305 Community Events Tree Lighting Ceremony @ Civic Center Campus •The annual Tree Lighting Ceremony was held on Friday, December 5. Mayor and Councilmembers provided holiday greetings and counted down the lighting of the Christmas Tree, provided by St. Nick’s Lighting and Decor. Approximately 2,500 persons attended the event. •Arctic Glacier provided a snow play area for families that included a sled area. Participants were provided La Quinta branded Santa hats and mittens to use in the snow. •Instagram photos with The Little Clauses (Santa and Mrs. Claus) by the tree and our emcees from Spotlight Entertainment, Chris and Michelle Brown, introduced the live performances provided by Dance, Play & Pretend, Beginning Ballet, La Quinta High School Cheer, Theater, and Wind Ensemble. •Holiday goodie bags were handed out to participants, Desert Recreation provide a cookie decorating station, Old Town Artisan Studios provided Art 2 Go kits, and Enchanted Memories had characters spreading holiday cheer and provided photo opportunities. Treats were provided by Kettle-Mitas Popcorn (kettle corn), and Bonita Coffee provided hot cocoa. Volunteers included the Boys and Girls Club, La Quinta Youth Collective, the Ophelia Girls and Scouts from Sunrise District: Scouting America Troop 1701 & 451. •Vendor participation included AK Johnston, Balloon Casita, Bright Event Rental, Desert Feed, Desert Party Company, Emerald Isle Entertainment, Party Pals, Tops and Barricades, and Xpress Graphics. 306 307 •Attendance: 4,216 residents and 3,831 non-residents used the park this quarter. Park hours: 5 days a week 12:00 - 9:00 p.m. (Wednesday - Friday) and 9:00 a.m. – 9:00 p.m. (Saturday-Sunday) for May - October. 7 days a week 12:00 – 9:00 p.m. (Monday - Friday) and 9:00 a.m. – 9:00 p.m. (Saturday-Sunday) November – April. •Total Memberships: 145 memberships sold this quarter (107 resident and 38 non-resident). Overall memberships sold to date is approximately 1,594 (1,614 resident and 588 non- resident). •Programs: Rhythm Skate Club; Roller Skate Night; Pop-up Scooter Jam; Casl Armature Skate Contest; Veterans Day Jam; Thanksgiving Skate Camp; Friday Night Skate; Black Friday All Wheels Jam; Desert Bowl Jam; Christmas Skate Camp; Rhythm Skate Camp Christmas Lesson; and End of Year Wheels Jam. •Events: 3 Year X Park Anniversary X Park Bike & Skate Programs/ Events/ Memberships 308 2025 OFWREHUDHFHPEHU2025DQG$QQXDORHYLHZ DESIGN & DEVELOPMENT QUARTERLY REPORT The Design and Development Department consists of three divisions: The Hub, Building, and Planning Business Licenses Issued L I C E N S E S A N D P E R M I T S The Hub serves as a one-stop permit center. It is the central location for obtaining permits for planning, building, engineering, business licenses, and special events. The Hub also issues permits for garage sales, home occupations, pool drains, re-roofs, and HVAC, window, water heater, and utility changeouts. 184 305 288 200 210 198 OCTOBER NOVEMBER DECEMBER 2024 2025 2024 202520242025 475475 475 874874 874 849849 849 660660 660 682682 682 703703 703 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Online (88.69%)In-Person (11.31%) Permits Processed Online/In-Person Welcome New Businesses 13 New Local Businesses Other Permits Issued 180 211 180 165 135 150 OCTOBER NOVEMBER DECEMBER 2024 2024 2025 2024 2025 332332 332 312312 312 388388 388 474474 474 495495 495 526526 526 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 This list is not exhaustive of all new businesses. Angry Chickz Ascendyn Advertising Beneath the Surface Therapy Boulevard Boutique Desert Buzz Liquor Fitzwell Interiors, Signature Treatments Flor Hair Salon Galcon-Hill JV Kasey Rissman Let's Eat Rice and Grill Mindwave Psychiatry Norma's Italian Kitchen La Quinta Ray of Hope Counseling DEPARTMENTAL REPORT ITEM NO. 5 309 $127k$127k $127k $184k$184k $184k $439k$439k $439k $225k$225k $225k $211k$211k $211k $333k$333k $333k Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 64 51 66 48 55 47 292 262 180 237 170 262 2024 OCTOBER NOVEMBER DECEMBER 2025 2024 2025 2024 2025 220 266 197 236 165 198 OCTOBER NOVEMBER 2024 2025 DECEMBER 2024 2025 2024 2025 Building Division Plan Check Submittals 614614 614 715715 715 954954 954 658658 658 642642 642 761761 761 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Building Permits Issued 486486 486 492492 492 678678 678 669669 669 582582 582 700700 700 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 PLAN CHECK AND BUILDING PERMITS The Building Division administers and issues all residential and commercial building permit applications, reviews plans (plan checks), and conducts on-site building inspections for compliance with the La Quinta Municipal Code and California Building Standards Code. Building Inspections 1,482 1,164 1,182 824 1,041 942 OCTOBER NOVEMBER DECEMBER 2024 2025 2024 2025 2024 2025 Average Building Inspections Per Day $74k $112k $71k $108k $66k $112k $52k $83k $58k $67k $54k $78k Plan Check Fees Collected: $227,781 Building Permit Fees Collected: $332,658 $168k$168k $168k $424k$424k $424k $193k$193k $193k $145k$145k $145k $164k$164k $164k $228k$228k $228k Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 OCTOBER NOVEMBER DECEMBER 2024 2025 2024 2025 2024 2025 OCTOBER NOVEMBER DECEMBER 2024 2025 2024 2025 2024 2025 OCTOBER NOVEMBER DECEMBER 2024 2025 2024 2025 2024 2025 2,4822,482 2,482 3,8013,801 3,801 6,9436,943 6,943 4,9884,988 4,988 3,7053,705 3,705 2,9302,930 2,930 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 4141 41 6262 62 116116 116 8282 82 6262 62 4949 49 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 FINANCIAL DATA INSPECTION DATA 310 3333 33 3838 38 2929 29 1818 18 4242 42 2626 26 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 PLANNING The Planning Division administers the zoning and development standards and works with residential and commercial developers, architects, builders, and businesses to ensure that development is consistent with the City's Zoning Code and General Plan. Planning staff coordinates with the Planning Commission, whose primary function is to develop and maintain the City’s General Plan, consider development applications, and serves as an advisory body to the City Council. Planning Staff Approvals Special Event Permits for weddings at 77600 Avenida Fernando on October 25, November 1, and November 8. Special Event Permit for an Annual Halloween Fundraiser for La Quinta Historical Society and Traveling Paws on October 30 and October 31 at 58300 Almonte Lane. Minor Adjustment to allow a 10% adjustment to the front yard setback at 77643 Calle Temecula. Final Landscape Plans for Bravo Estates at the corner of Madison Street and Avenue 52. Special Event Permit for a Trunk or Treat Event on October 24, hosted by Grocery Outlet at 50929 Washington Street. Modification by Applicant for an outdoor playground and shade structure at the Desert Academy Preschool and Daycare at 50905 Avenida Bermudas. Minor Use Permit for a temporary sales office and model home at Griffin Ranch. Final Landscape Plan for front yard typicals for 37 single-family homes and the Sales Trailer at Griffin Ranch. Minor Use Permit to reconfigure the arrays and installation of antennas at an existing Monopalm at the La Quinta Country Club at 77750 Avenue 50. Modification by Applicant to allow for exterior paint modification for the Extra Mile convenience store and the Chevron gas station in the Dune Palms Plaza at 79513 Highway 111. Modification by Applicant for installation of a patio cover at the rear of a property at 51289 Desert Club Drive. Special Event Permit for an outdoor tent at the AMGEN Corporate Retreat at La Quinta Resort on January 7-9. Temporary Use Permit for Home Depot Christmas Tree Lot at 79900 Highway 111. Minor Adjustment to allow a 10% increase in height limit for a residence at 81807 Baffin Avenue. Special Event Permit for IRONMAN 70.3 La Quinta 2025 Triathlon and associated activities on December 5-8. Modification by Applicant for a 400 sq ft addition to the Tradition Golf Club Guardhouse at 78505 Old Avenue 52. Minor Adjustment to allow a 10% reduction to the side yard setback for a residence at 47330 Via Ravenna. Special Event Permit for La Quinta Art Celebration and Encore Event to take place in November 2025 and March 2026. Director Determination for a mechanical equipment encroachment in a side yard setback at 56415 Jack Nicklaus Blvd. Amended Final Tract Map for Malaga residential development. Special Event Permit for the 2026 American Express Golf Tournament to take place at La Quinta Country Club, PGA West’s Nicklaus Tournament Course, and the Stadium Course at PGA West from January 19 through January 25, 2026. PLANNING APPLICATIONS RECEIVED 11 7 10 11 21 8 Planning Commission Actions Approved Resolution finding a proposed street vacation at the northwest corner of Avenida Villa and the adjacent alley right-of-way is consistent with the General Plan. Recommendation to City Council to adopt a Mitigated Negative Declaration and approval of a Specific Plan for the Highway 111 Specific Plan and Development Code Approved a Tentative Tract Map and two Site Development Permits to allow the subdivision and development of the golf course, perimeter landscape, and sales center for the Coral Mountain Club. OCTOBER NOVEMBER DECEMBER 2024 2025 2024 2025 2024 2025 311 2025 Annual Review Business Licenses Issued 2,5062,506 2,506 2,9882,988 2,988 2,9012,901 2,901 2,9972,997 2,997 2,7242,724 2,724 3,0883,088 3,088 2020 2021 2022 2023 2024 2025 1,2591,259 1,259 1,4531,453 1,453 1,9471,947 1,947 1,9581,958 1,958 1,7441,744 1,744 1,8751,875 1,875 2020 2021 2022 2023 2024 2025 0 Other Permits Issued 2,1322,132 2,132 3,1043,104 3,104 4,1434,143 4,143 3,0333,033 3,033 3,0053,005 3,005 2,8792,879 2,879 2020 2021 2022 2023 2024 2025 Plan Check Submittals 1,9321,932 1,932 2,3912,391 2,391 3,2253,225 3,225 3,2353,235 3,235 2,7302,730 2,730 2,5972,597 2,597 2020 2021 2022 2023 2024 2025 Building Permits Issued $549k$549k $549k $971k$971k $971k $867k$867k $867k $816k$816k $816k $684k$684k $684k $760k$760k $760k 2020 2021 2022 2023 2024 2025 Plan Check Fees Collected $.730k$.730k $.730k $1.16m$1.16m $1.16m $2.10m$2.10m $2.10m $1.49m$1.49m $1.49m $1.03m$1.03m $1.03m $1.03m$1.03m $1.03m 2020 2021 2022 2023 2024 2025 Permit Fees Collected 88%90% 2024 2025 Permits Processed Online 123 128 148 89 112 123 2020 2021 2022 2023 2024 2025 Planning Applications 312 La Quinta Development in Action - 2025 NORMA'S ITALIAN KITCHEN ENZO'S PATIO EXPANSION DANCE DIMENSIONSGOLF SOCIAL HIDEAWAY CLUBHOUSE EXPANSION BOULEVARD LUXURY CONSIGNMENT DISCO RABBIT JEFFERSON STREET APARTMENTS KEKE'S KITCHEN TEN ELEVEN (TRILOGY) 313 314 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 REPORTS AND INFORMATIONAL ITEM NO. 22 315 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. 316 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. 317 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 318 WRITTEN PUBLIC COMMENTS CITY COUNCIL MEETING FEBRUARY 17, 2026 CITY COUNCIL MEETING - FEBRUARY 17, 2026 - WRITTEN PUBLIC COMMENTS BY CITIZEN SUE BUNTEN STUDY SESSION ITEM NO. 1 -PROPOSED STRIPING REVISIONS FOR EASTBOUND HIGHWAY 111 From: Sue Bunten <sue@bunten.ca> Sent: Monday, February 16, 2026 2:34 PM To: City Clerk Mail Subject: A Local Cyclist's Input on the recent Washington Re -Striping EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening attachments, clicking links or responding to requests for information. Some people who received this message don't often get email from sue@ bunten.ca. Learn why this is important I live seasonally in Indio at 48th and Monroe and have been riding my road bike up to Portola and 111 5 days a week on average for 5 or 6 months a year. I am an experienced cycle tourer and ride a lot, and I turned 70 this year. So I have been riding that Washington Point Happy intersection for many years, all ways with my usual default being behind Vons if I cross by Trader Joes and then ride the far side. It was not very good as I was going into the ext lande to access the behind Vonas area This year , I have been very very impressed with the re -striping and now find it much much safer to ride through the Washington 11n intersection westbound - on 111 all the way . I usually get out onto 111 (going westbound) from 48th on Simons drive though it id=s a long slow light and then ride swest traight through on 111. The bike lane now is very smooth, it's very visible with green highlighting and is imho the safest it's ever been by far. Kudos to the planners as a cyclist riding westbound it is now as of the re-stripOng, smoother, wider , better visually separated and all around much much better. Yaay! And, ..the re sterioping has made my eastbound ride also much safer, more confortable and smooth and fast witt a smoother surface and clearly delinieated green bike lane that I can get in early and stay in and it's even a bit downhill. I feel far far safer than I ever did before in fact I would never ride through the intersecftiiob eastbound it..I would always go back through behind Vons which has its own dangers. So: riding eastbound as a cyclist through Washington on 111 - the improvements have made it feel to me as a cyclist 1000 % safer A warning: Curbs can add danger. I have seen far too many cycling injuries caused by curbs, both low and high if cyclists miss seeing them or see them too late . There is a lot to look at and be alert to riding eastbound...I would worry that a curb would create one more hazard that could be missed and cause a really bad cyclist crash. A say no to curbs. Unless they are really big like planters (used by Vancouver). Sue Bunten Q CITY COUNCIL MEETING - FEBRUARY 17, 2026- WRITTEN PUBLIC COMMENTS BY RESIDENT RYAN LEADERMAN STUDY SESSION ITEM NO. 1 - PROPOSED STRIPING REVISIONS FOR EASTBOUND HIGHWAY 111 From: ryan <namredael(dvahoo.com> Sent: Tuesday, February 17, 2026 2:22 PM To: Jennifer Nelson <inelson(dlaauintaca.eov> Subject: Fw: City of La Quinta Study Session for HWY 111 and Washington Street Striping Revisions - Input Requested Hi Jennifer, Not sure if you've seen my thoughts on this. I ride through this intersection a few times a month. Best, Ryan Leaderman Begin forwarded message: On Saturday, February 14, 2026, 5:54 PM, ryan <namredael@yahoo.com> wrote That is a scary intersection I was going to say that of the three options, Option 1 does seem like the safest, except that if riding a bike east across Washington, a bicyclist will be taking his or her life in their hands due to the southbound right turns -- the bikes will be right in the path of those vehicles. And we all know those southbound right turns at this intersect go fast! Also, we usually cut through the shopping center on the north to get to CV Link. If we wanted to to tun left on Washington to get to CV Link, the cycle track would kind of trap us so that it would be difficult to turn left -- and we would be stuck facing the southbound right turn cars at Washington ifwe wanted to head north. Thus, I don't like Option 1. For Option 3, if the concern is that cars are turning too early into the right turn lane into the shopping center and plowing through the striped gore area, why not put some concrete with some bollards/poles/landscaping so cars will not drive through that area? That seems to solve the problem. Of course, 1 don't know if this creates a similar safety issue with drivers still driving over the concrete? Would love thoughts before I send this over to the City. HAND OUTS CITY COUNCIL MEETING FEBRUARY 17, 2026 2026 Approved Goals & Objectives CITY COUNCIL MEETING - FEBRUARY 17, 2026 - HAND-OUT BY VISIT GREATER PALM SPRINGS ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS ITEM NO. 2 - 2026 APPROVED GOALS & OBJECTIVES Destination Future Planning As we look ahead, the global tourism industry stands at a pivotal crossroads shaped by normalizing travel demand following the post-pandemic surge and a rapidly shifting digital ecosystem. Nationally, rising media costs and the integration of Generative AI into the travel planning journey have fundamentally transformed how visitors discover destinations, moving the “search-to-booking” path away from traditional websites and toward direct, AI-driven answers. Internationally, economic headwinds and fluctuating currency exchanges—particularly in key markets like Canada—require a more agile and targeted approach to maintain our global competitiveness. In response to these external dynamics, Visit Greater Palm Springs is embarking on a landmark year. A central milestone for 2026 will be the development of our updated, comprehensive Destination Stewardship Plan. This forward-thinking roadmap will not only guide our long-term growth and sustainability but also ensure that tourism continues to enhance the quality of life for our residents while preserving the unique character of our oasis. The Destination Stewardship Plan will deliver nine city tourism plans that will integrate into our regional plan. The individual city plans will be funded by VGPS. By prioritizing economic diversification, expanding international reach through campaigns like “Thrive and Shine” (economic development), “Escape Your Ordinary” (national campaign), and “Where You Shine” (international and LGBTQ) while leveraging major global moments such as the 2026 FIFA World Cup, we are positioning Greater Palm Springs as a premier, year-round destination that remains resilient in an ever-changing global economy. Destination Stewardship Plan As we plan for the future, a major milestone will be underway in 2026: the development of our updated comprehensive Destination Stewardship Plan (previously called the Destination Development Plan) for Greater Palm Springs. This forward-thinking initiative will serve as a strategic roadmap to guide the region’s long-term growth, competitiveness, and sustainability as a premier travel destination. Equally important, it will ensure that future tourism development enhances resident quality of life while preserving the character, culture, and natural beauty that make our oasis truly one of a kind. The plan will align closely with our organizational priorities—including driving off- peak visitation, expanding air service, growing meetings and conventions, advancing sustainability and DEI, strengthening the hospitality workforce, and promoting economic diversification across the Coachella Valley. At the end of 2025 we conducted a competitive bid process, and we recently conducted three interviews with CSL, Resonance, and Hunden Partners with our team and three board members (Rolf Hoehn, Doug Watson, and David Feltman). The interview panel determined that Hunden Partners is best suited to work with our region and accomplish our goals. The entire Hunden team will bring a unique and creative approach to the master planning process and ultimately a plan that is actionable and measurable. During the interview process, we decided to expand the scope and add nine city-level plans alongside the regional plan, focusing on tactical implementation steps tailored to each city. As part of this expanded scope, we asked for deeper, tourism-specific analysis and recommendations across key categories, including: •Large hotels and resort properties •Short-term rentals •Small and boutique hotels •Restaurants •Attractions and experiences •Retail that supports the visitor economy •Event venues and supporting infrastructure •Outdoor recreation assets For each category, we are seeking insights that help translate the master plan into practical guidance for cities. This may include, but is not limited to: •How current city policies, regulations, and planning frameworks impact each category •Identification of gaps, needs, or barriers within each city •Market opportunities and risks •Action-oriented considerations that cities can use to inform policy decisions, planning priorities, and future investment Key additional tasks include: o Organizing an in-person session with city leaders and touring key assets. o Conducting customized focus groups for each city. o Enhancing research on destination products and gaps specific to each city. o Developing unique plans for each city that address policies, identify gaps, and recommend actionable priorities. The overall timeline was adjusted to 12-13 months, with the regional plan taking 10 months and city plans an additional 2-3 months. Indoor Sports Complex In 2026, Visit Greater Palm Springs will continue advancing plans for a ~200,000 sq. ft. Indoor Sports Complex, a long-term regional asset projected to generate a $46.3 million annual economic impact, 34,300 annual hotel room nights, 561,500 total annual attendee days, and $384,600 in annual net operating profit (excluding debt service). This project is critical to increasing demand during the summer months. With sports tourism rapidly growing nationwide, this facility is critical for the destination to remain competitive, secure year-round tournament business, and drive much-needed summer and off-peak visitation to support local hotels, restaurants, and attractions. Building on strong feasibility results and demonstrated demand for indoor, climate- controlled space, VGPS will focus on securing funding, aligning regional partners, and advancing key pre-development milestones to position the project for a 2027/28 groundbreaking. 2026 Priorities • Finalize funding strategy: Partner with Kosmont to identify viable financing models, incentives, and investment tools, and develop a clear funding pathway for the facility. • Engage regional stakeholders: Share funding findings and economic impact potential with cities and prospective partners to build multi-jurisdictional support. • Attract developers and investors: Actively pitch the project to qualified developers, operators, and investment partners, both within and outside the region, to drive interest, explore public-private partnership models, and identify potential long-term operators for the facility. • Advance pre-development work: Support site analysis, feasibility refinement, governance structure exploration, and partner outreach to keep the project moving toward 2027. • Strengthen the case for impact: Continue quantifying projected economic benefits, including visitor spending, job creation, and increased off-season activity, to ensure regional alignment and investment readiness. AI-Driven Efficiency & Productivity In 2026, Visit Greater Palm Springs will continue to leverage AI to drive organizational efficiency, enhance productivity, and enable teams to focus more time on high- impact, strategic work. AI will be integrated as a practical business tool, supporting faster insights, smarter decision-making, and streamlined workflows across marketing, communications, sales, research, partnership, and operations while maintaining brand integrity, data privacy, and human oversight. By using AI, the organization can respond more quickly to market changes, maximize ROI, and operate with greater agility in an increasingly competitive tourism landscape. Examples of AI applications include: •Marketing & Content Efficiency: Using AI to accelerate first-draft development for campaign and website copy, social content, itineraries, media pitches, and internal reports, allowing teams to focus on refinement, storytelling, and brand alignment. •Data & Insights: Applying AI to analyze performance dashboards, identify trends in booking windows, traveler behavior, and source markets, and generate faster insights to inform media spend, co-op strategies, and air-service support. •Sales & Meetings Productivity: Leveraging AI to summarize RFPs, analyze lead quality, draft customized follow-ups, and identify patterns that support off-peak and midweek group demand. •Research & Reputation Management: Monitoring media coverage, social sentiment, and competitive positioning in real time to surface opportunities, mitigate risks, and inform proactive PR strategies. •Internal Operations: Automating meeting summaries, project updates, utilizing Zapier to automate Basecamp projects and to-do’s, and cross-departmental reporting to reduce manual workload and improve alignment across teams. AI will support Visit Greater Palm Springs’ commitment to innovation, accountability, and results—ensuring the organization operates smarter, faster, and more efficiently in 2026 and beyond. Research/Dashboards Research remains a critical foundation for how Visit Greater Palm Springs makes informed, strategic decisions, ensuring marketing investments, sales efforts, and destination initiatives are grounded in data and aligned with both visitor demand and community priorities. In 2026, Visit Greater Palm Springs will continue to leverage a robust research portfolio to generate actionable insights that guide long-term strategy, optimize resource allocation, support stakeholder decision-making, and advance destination stewardship. Key research initiatives include: •2025 Tourism Economic Impact Study – Quantifies the total economic value of tourism to the region, including jobs supported, tax revenues generated, and household savings. •2025 STVR Economic Impact Study – Assesses the economic value of short-term vacation rentals, including revenue, visitor spending, and job creation, to guide policy, planning, and destination development decisions. •Resident Sentiment Study (initiated in 2025; finalizing in 2026) – Captures resident perceptions of tourism, quality of life, and community benefits to guide responsible growth and stakeholder alignment. •Image and Awareness Study (initiated in 2025; finalizing in 2026) – Evaluates brand awareness, destination perception, and traveler motivations across key domestic and international markets. • Visitor Intercept Study (initiated in 2025; finalizing in 2026) – Provides real-time insights into visitor behavior, spending patterns, and experience drivers while in destination. • Destination Stewardship Plan – Establishes data-informed strategies to balance visitation growth with sustainability, resident quality of life, and long-term destination health. • Meetings – Evaluates the effectiveness of “The Oasis is Real” campaign and identifies opportunities to better support meetings and group business. Identifies behaviors, motivations and booking patterns of meeting planners. • Restaurant Week Survey – Measures program performance, visitor engagement, and economic impact to inform future culinary and off-peak visitation strategies. Visit Greater Palm Springs will also complete the rollout of customized destination dashboards in partnership with Rove in 2026, transforming complex data sets into clear, intuitive visualizations that deliver meaningful, actionable insights. By seamlessly integrating multiple data sources into a single platform, these dashboards centralize information that previously lived across disparate tools and reports, streamlining workflows, reducing manual reporting, and improving consistency in how performance is measured and communicated. The result is greater operational efficiency, faster access to insights, and more confident decision-making. Beyond internal use, the Rove dashboards significantly expand the value of Visit Greater Palm Springs’ data by enabling cities, partners, and stakeholders to access the same trusted insights in real time. This shared visibility creates a common source of truth, supports more productive and informed conversations, and strengthens alignment across the organization and destination community, reinforcing transparency, collaboration, and data-driven decision-making at every level. _________________________________ Board Priority: Increase Demand CONVENTION SALES The team delivered an exceptional year-end performance in 2025, achieving 115% of its annual room-night goal by securing 262,061 room nights against a target of 228,500. This result exceeded the stretch goal of 235,000 room nights and surpassed the previous high-water mark set in 2018 (242,084 room nights). A key driver of this success was the team’s intentional focus on booking business in off- peak and shoulder periods, amplified by the Meetings Oasis Incentive Program. Together, these efforts generated 140,696 room nights during targeted need periods across the in-year and three-years-out windows—up significantly from 99,461 room nights in 2024. Year-end performance across all goal categories included: •1,620 total leads distributed – 105% of annual goal (1,550) •284 new bookings – 103% of annual goal (275) •849 new leads generated – 105% of annual goal (805) Geographically, top end-user markets were led by Southern California, the Mid-Atlantic, and Northern California, while the highest-producing industry segments included high tech, healthcare & medical, and trade/commercial. In 2025, the team established targeted booking goals to drive room nights during off- peak and shoulder months (May & September, Summer, and Q4), delivering outstanding results: •May & September: 183% of goal – 47,545 room nights (goal: 26,000) •Summer: 127% of goal – 31,218 room nights (goal: 24,500) •Q4: 206% of goal – 61,933 room nights (goal: 30,000) Overall, the team successfully booked 140,696 room nights during these need periods against a goal of 80,500. This performance was driven by a combination of focused direct sales efforts, strategic partnerships, targeted marketing campaigns, booking incentive program, expanded trade show and sales mission presence, and increased in-market familiarization tours, demonstrating a results-oriented approach to demand generation and long-term growth. Looking Ahead to 2026 The renovation and expansion of the Palm Springs Convention Center (PSCC) is anticipated to begin in Q3 2026 and conclude in Q3 2028. While this investment is critical to the long-term competitiveness of the destination, construction activity during this period may impact near-term booking production. For context, PSCC-related booking production has been strong in recent years: The data below highlights the short-term nature of the booking window and the impact it will have on our ability to confirm groups during the renovation/expansion process. •2024: 43,171 total room nights booked o In-year: 12,219 (2024) o 1 year out: 20,753 (2025) o 2 years out: 10,013 (2026) o 3 years out: 7,275 (2027) •2025: 61,598 total room nights booked o In-year: 8,115 (2025) o 1 year out: 14,934 (2026) o 2 years out: 18,230 (2027) o 3 years out: 11,612 (2028) Additionally, the Riviera Resort is scheduled to be closed from May through December 2026, with the potential to extend into 2027. This temporary closure will further impact available inventory and booking potential. For reference: •2024: 20,647 room nights booked (in-year and future years combined) •2025: 17,899 room nights booked Future Pace for 2026 shows the destination down by 1% year over year, with room nights on the books (RNS OTB) tracking 2,122 fewer room nights than same time last year. •Quarterly breakdown points to a stronger back half and a need and focus into the first half of the year: • Q1: Down -6%, (-6,457 room nights) Q2: Down -23% (-14,535 room nights) Q3: Up +13% (+4,376) Q4: Up +56% (+14,494) Future Pace for 2027-2029 are as follows: • 2027: Up +3% (+2,835) • 2028: Up +17% (+8,819) • 2029: Up +43% (+8,064) CBRE Hotel Market Forecast (a s o f November 2025) 2026 Outlook • Overall market occupancy is expected to stay flat in 2026 at 60.6%, while the downside projects a decline of -3.4%. • ADR is expected to grow 2.5% in 2026. • RevPAR growth is expected to grow 2.2%. HISTORICAL GOALS/2026 GOALS 2024 GOAL 2024 STRETCH GOAL 2024 ACTUAL 2025 GOAL 2025 STRETCH GOAL 2025 ACTUAL 2026 GOAL 2026 STRETCH GOAL ROOM NIGHTS 207,000 225,000 237,182 228,500 235,000 262,061 250,000 260,000 LEAD DISTRIBUTION 1,650 1,730 1,520 1,550 1,565 1620 1580 1600 NEW BOOKINGS 290 305 268 275 290 284 280 290 NEW LEAD DISTRIBUTION 870 885 797 805 825 849 835 850 Off-Peak Booking & Sales Focus: In 2026, Convention Sales will continue to prioritize off- peak and shoulder-season demand generation, with a deliberate focus on mid-week occupancy and long-term booking windows. 1. Track & Optimize Off-Peak Performance Continue to closely track off-peak and mid-week bookings, using data and reporting tools to identify trends, conversion opportunities, and gaps by month, market, and industry segment. 2. Develop Mid-Week Advantage Offers Launch a Mid-Week Advantage program featuring compelling value-add packages co-developed with hotel partners. Offers may include enhanced concessions, experiential add-ons, or destination incentives designed to increase mid-week occupancy during off-peak and shoulder seasons. These offers will be promoted through targeted newsletters, LinkedIn campaigns, and marketing promotions in collaboration with strategic partners. 3. Increase Off-Peak Conversion Through Enhanced Site Inspections Expand and elevate off-peak site inspections to improve close rates for meetings and events. In partnership with the Marketing and Brand teams, these experiences will more effectively showcase updated venues, resorts, and unique destination experiences that position Greater Palm Springs as a high-value, flexible off-peak option. Sports Market: Sports tourism will remain a key driver of off-peak demand and economic impact. 1. Establish a Sports Advisory Committee Assemble a local sports committee with key stakeholders to identify and pursue sports organizations and events that align with off-season availability. The committee will meet quarterly to align priorities, assess opportunities, and coordinate resources. 2. Dedicated Sports Incentive Fund Allocate a dedicated fund to help offset operational or venue costs for high- value sports events that deliver measurable room nights during off-peak periods. 3. Enhance Sports Value-Add Programming Collaborate with hotels, attractions, and local businesses to create value-add offerings for visiting teams, families, and spectators—driving extended stays and increased local economic impact. Partnership and Collaborations: Strategic destination partnerships will support rotational and multi-program business during off-peak periods. 1. Expand Palms-to-Palms Partnership Continue to strengthen the partnership with The Palm Beaches CVB and Convention Center, focusing on rotational business opportunities and personalized client hand-offs that target off-peak and shoulder seasons. 2. Joint Client Engagement & Packaging Host a minimum of three joint client events with The Palm Beaches to promote Palms-to-Palms opportunities. Develop a bundled value package for rotational programs designed to increase multi-year and multi-program bookings during shoulder seasons. NEW Customer Advisory Board (Mentor/Mentee Structure): A new Customer Advisory Board (CAB) Leadership Exchange will be structured as a mentorship and knowledge- sharing program that pairs experienced meeting planners with emerging professionals in the industry. Designed as an extension of the CAB, this program will position Visit Greater Palm Springs as an industry leader committed to talent development, long- term relationship building, and the future of meetings and events while gaining meaningful insights that cross generations. Robust Travel Calendar & Client Events: Visit Greater Palm Springs will continue to execute a high-impact calendar of client events, tradeshows, and destination familiarization (FAM) trips designed to deepen relationships with meeting planners and decision-makers while showcasing the destination’s diverse venues, refreshed hotel product, and unique experiences. These in-market and outbound efforts are a critical component of the Convention Sales strategy, serving as both a relationship-building and conversion-driving tool. Building on strong momentum, the team hosted 98 client engagements in 2025, reflecting a strategic activity aligned with off-peak demand generation and long-term booking windows. Collectively, these initiatives reinforce Visit Greater Palm Springs’ commitment to personalized service, proactive sales outreach, and positioning the destination as a premier, year-round meetings and events destination. Key highlights included in our plans are participation in national and regional tradeshows such as IMEX, ASAE, and PCMA, alongside immersive client events and FAM experiences including the Palm Springs International Film Festival and a Spring FAM designed to showcase the destination firsthand. These efforts are further amplified through collaborative partner activations with organizations such as Visit California and partnerships with Palm Beaches CVB, extending reach and strengthening strategic partnerships. As part of this approach, we encourage our hotels and resorts partners to proactively bring forward opportunities tied to high-profile client events, enabling Visit Greater Palm Springs to partner alongside them to extend reach, elevate the client experience, and maximize destination visibility. Marketing & Sales Alignment: Convention Sales will continue to align closely with Marketing to elevate visibility and generate inbound demand. 1. Maximize Media & Partner Marketing Opportunities Leverage media partnerships and strategic vendors to extend the reach of the “The Oasis Is Real” meetings campaign. 2. Refresh Campaign Assets Update “The Oasis Is Real” with new video and photography highlighting refreshed meeting spaces, new and renovated hotel product, and immersive destination experiences. 3. Explore Co-Op Content Development Evaluate and pursue co-op opportunities with hotel and resort partners to support joint video and photo production, expanding Visit Greater Palm Springs’ meetings asset library. 4. Elevate LinkedIn Thought Leadership Increase LinkedIn activity with strategic content recapping tradeshows, sales missions, and destination FAMs—positioning Visit Greater Palm Springs as an industry expert, showcasing destination momentum, and driving planner interest and inbound leads. _________________________________ Marketing In 2025, Visit Greater Palm Springs advanced a comprehensive, multi-channel consumer advertising strategy to expand brand visibility, deepen audience engagement, and deliver measurable results across key drive and fly markets. Collectively, these campaigns generated a total of 30.8B impressions across all platforms an increase of more than 800 million impressions year over year. These campaigns elevated the destination’s profile nationally and internationally, supported tourism partners and stakeholders, strengthened community pride, and stimulated off-peak and year-round visitation, reinforcing Greater Palm Springs’ position as a premier travel destination. BRAND HEALTH & AWARENESS: At the close of 2025, SMARI completed an Image and Awareness Study evaluating how Greater Palm Springs is perceived across key domestic and international markets. The study measured brand awareness, destination imagery, and consumer travel behaviors, including lodging preferences and travel motivations. These insights will directly inform future strategic planning, guide marketing investments, and ensure messaging remains aligned with the expectations of high- value travelers. Findings include: • Emerging fly markets such as Atlanta, Salt Lake City, and Washington, D.C. experienced the most significant gains in destination perception following recent advertising investment. • Brand perception gains are cumulative and long-term; Greater Palm Springs continues to see strong positive momentum since expanding its marketing footprint in 2018. • Gateway markets reported the highest familiarity levels, with 74% of consumers indicating some level of awareness of Greater Palm Springs. • International consumers showed notable increases in familiarity, signaling growing global reach and awareness. • Greater Palm Springs outperforms its competitive set on key product attributes— particularly as a destination for health and wellness and for offering a relaxing, rejuvenating atmosphere. 2026 Goals – Consumer In 2026, Visit Greater Palm Springs will focus on further optimizing our variety of tactics and marketing strategies to further enhance brand visibility, audience engagement, and drive off-peak visitation. Below is an outline of our key objectives for 2026: Brand Campaigns • Escape Your Ordinary – The successful “Escape Your Ordinary” campaign will return in Fall 2026 for its planned third year, supported by refreshed creative assets informed by performance analysis and creative optimization. New photography will be incorporated to ensure fresh content and updated partner representation. • NEW – Where You Shine: Launch the “Where You Shine” campaign with a focus on international markets and LGBTQ+ audiences, highlighting the destination’s unique positioning as an authentically welcoming and inclusive option for travelers. The campaign will include digital, social, and video assets deployed across all channels in international markets such as Canada and the UK, with additional creative specifically targeting LGBTQ+ audiences and running across LGBTQ+ media platforms. The campaign will also run on standard consumer channels as a test alongside the core brand campaign. Digital Services • NEW - Agency Evaluation – In Q4 2025, a comprehensive RFP was issued for Visit Greater Palm Springs’ digital services, with a three-phase approach for our CRM, CMS, and paid digital media, to ensure that we are aligned with the most effective and forward-thinking agency partners in these areas. In early 2026, we will finalize evaluations of each proposal to identify opportunities for shifts in our digital strategy, which may include one or more of these key phases. o Onboard any new agency partners that we agree to contract with, ensuring seamless integration into our digital ecosystem, alignment on goals and KPIs, and a coordinated rollout of new strategies and initiatives. ▪ Phase 1: Paid Services – Select in Q1 with a Q2 launch ▪ Phase 2: CMS – Review and launch by Q3 ▪ Phase 3: CRM – Review and decision by Q4 Destination Pillar Support • NEW - Video Series: “Escapes” o Promote new series launched in December 2025 in collaboration with production company Part Time Genius. This six-episode series highlights key destination pillars through a fast-paced, voiceover-driven style and will be distributed across programmatic video channels, connected television, and social media. • NEW – Social Media Video Series: In collaboration with Alle Pierce and Stefan Colson (our partners on the “Your Guide To Greater Palm Springs” social series from 2024/2025), we plan to create a social media video series, “Only in Greater Palm Springs,” focusing on creation of short-form, social-optimized content featuring 15 hyper-local experiences throughout Greater Palm Springs for both consumer and dineGPS channels. o Each location will be captured in three distinct creative styles – talent-led with voiceover, short-form cinematic, and one utilizing current trending audio and a compilation format to drive engagement via saves and shares. Together, these three formats will allow us to test a variety of content styles across TikTok, YouTube Shorts, Instagram Reels, and Facebook, maximizing performance based on our KPIs and providing a flexible bank of content that can be repurposed throughout the year. Performance insights from this testing will directly inform the VGPS team’s social media video creative strategy, revealing which messaging, formats, and hooks resonate most effectively by platform. • Culinary Experiences o Promote annual Greater Palm Springs Restaurant Week with a dedicated media plan supported by refreshed photo and video assets highlighting participating restaurants. o Continue to grow and promote the dineGPS Chef Series on social channels, featuring local restaurateurs and chef-owners. o Explore new ways to utilize the Visit Greater Palm Springs app to promote local restaurants, whether through our annual Summer Eats Pass or via other dining-centric promotions. • Arts & Culture o Continue promotion of the Oasis of Art campaign through visibility of our Visit Greater Palm Springs app as well as promotion of signature events, museums, and public art via digital advertising, ongoing video campaigns, and social channels. • Health & Wellness o Build upon the success of our inaugural Spa Month in 2025 with an expanded media plan. o Produce new health and wellness video assets that highlight our resort spas and wellness offerings. • NEW - Sports & Outdoor o Promote Greater Palm Springs as premier destination for outdoor adventure and sports highlighting hiking, horse park, golf, polo, soccer, ice skating, tennis and pickleball. o Create video content supporting this pillar with new social media series and summer social media for indoor sports LGBTQ+ Audiences • Continue to authentically represent LGBTQ+ travelers across all marketing materials, while exploring new advertising opportunities and partnerships to extend the reach of the “Where You Shine” campaign, particularly across video and digital platforms. • Explore new and updated ways to provide co-op advertising opportunities to our LGBTQ+ and allied hotels, via Lavender Magazine or other publications and platforms. Off-Peak Visitation • NEW – Summer Brand + Social Media Campaign - Launch a new summer brand campaign that will build on the success of past campaigns like “Check In. Chill Out.” and “Born to Chill.” An RFP was distributed in Fall 2025 to four qualified agencies, with three proposals in the evaluation/selection phase. The agency awarded the campaign will begin planning for production slated for spring with campaign deployment beginning in May 2026. • Summer Television Co-Op – Produce up to ten new :30 commercial spots to enhance our overall brand campaign and provide cost-effective advertising opportunities for destination hotels, attractions, and city partners. • NEW - Explore opportunities to include nightlife and evening activities/events into summer campaign messaging. NEW - Expedia Ambassador • Greater Palm Springs’ is the sponsor and host destination for the highly sought after Expedia Ambassador Summit in February 2026. This will elevate destination visibility among top travel influencers and content creators and position the region as a year-round leisure destination. The Summit will be used to showcase key destination assets and activities to an audience with expansive reach across digital and social channels, driving increased visitation to the destination. o 40 total ambassadors will attend with an 11M combined reach and 530K average reach. o The event will be hosted by the Parker Palm Springs with a vacation rental property as a featured dinner location. o Visit Greater Palm Springs will attend key Summit events and present an Education Session about the destination as part of programming. o Expedia will promote Summit content across their channels (Facebook, Instagram, Pinterest) in addition to influencer content. o Visit Greater Palm Springs will create a dedicated Expedia Travel Shop (recommendation hub and storefront for the destination) featured on the Expedia app for 30 days. Live Sports • NCAA – Acrisure Series: Build on the success of past sponsorships of the Acrisure Series by continuing to support this high-profile event, with the goal of increasing visibility and audience engagement to further position the destination as a premier sports and travel location. o Support new dates for 2026 across both November and December games. o Maintain branding at Acrisure Arena with Greater Palm Springs brand messaging and social handles, including full LED ring visibility, scoreboard signage, and prominent placement of court floor logo. o Ensure inclusion of Greater Palm Springs brand commercials in game airings, maximizing reach to millions of live sports viewers. o Highlight destination offerings, including both group and leisure travel opportunities, through marketing efforts targeting visitor fans during Thanksgiving and early December. • NEW - FIFA World Cup and 2028 Olympics: Coordinate new and ongoing targeted live sports placements as part of the overall television advertising strategy, intentionally leveraging moments when global attention is at its peak. With billions of viewers actively engaged around the 2026 FIFA World Cup and the 2028 Olympic Games, this approach positions Greater Palm Springs in front of a highly attentive, international audience actively consuming travel and destination content tied to these marquee events. The strategy focuses on driving awareness and future visitation across priority domestic and international feeder markets, while ensuring the destination is visible during culturally relevant, high-impact moments. Strategic partnerships and co-op opportunities with travel and media partners such as Expedia and similar platforms will be evaluated annually and integrated when they demonstrate strong audience alignment, premium placement, and measurable performance lift. TED Partnership Visit Greater Palm Springs will build on our successful TED partnership by sponsoring TED2026. This prestigious partnership provides unique opportunities to showcase Greater Palm Springs as a hub for innovation, inspiration, and connection to this highly influential audience. For the upcoming year, this sponsorship includes: • Exclusive Travel Partner Sponsor – As the Exclusive Travel Partner Sponsor, Visit Greater Palm Springs will have prominent brand visibility throughout pre- conference communications (including on the TED website and newsletters) as well as logo placement throughout the conference venue. Last year’s conference included a highly influential audience of over 1,600 attendees representing 53 countries, a large portion of which are senior leaders and decision makers. • Sponsorship Dinner: “Dine Around the World” dinner experience, with an invitation-only event with a targeted group of “c” suite attendees. This event focuses on curated conversations and networking. • Social Media Exposure: Additional promotion across social media channels will part of the sponsorship, including a LinkedIn Live presentation post-conference, or similar opportunities. In addition, added value posts on Meta and LinkedIn channels will be included during the conference period. • NEW Restore Lounge - An immersive takeover of TED’s most frequented space: the Restore Lounge—a calm, wellness-focused destination where attendees recharge throughout the five-day experience. • NEW Content Production & Promotion – This targeted plan is valued at $250K and includes production and promotion of a 2-3 minute longform video and :15-30 cutdown spots for usage on Ted.com and YouTube as well as TED social channels (LinkedIn, Meta). 2026 Goals – International Marketing initiatives in key international markets will continue to adapt to ongoing headwinds and potential shifts in the travel landscape in 2026. Key Market Strategies: o Canada: Expected decreases in visitation from Canada, Greater Palm Springs’ #1 international market caused by recent shifts in travel behavior driven by economic and political factors, currency exchange, and evolving traveler preferences. This has created some uncertainty around near-term outbound travel to the U.S. Scheduled flights from Canada to PSP continue to trend down slightly entering the winter season, and this trend is expected into 2026. We continue to maintain conversations with our Canadian airlines, uncover additional partnership opportunities, and reach out to our loyal Canadian visitors through targeted messaging, ongoing media partnerships, and seasonal promotions focused on wellness, signature events, and extended stays. ▪ NEW – Co-ops with Canadian airline partners: ▪ Porter Airlines – in partnership with PSP – create a campaign to encourage inbound and outbound Canadian travel – ▪ NEW – Brand USA Co-ops • Air Miles (ran in 2025) or similar program Canada’s most recognized loyalty program • Optimize Audience – utilizing Brand USA’s first party data with targeted ads and messaging o UK / Ireland – Continue partnership with Finn Partners agency with an evolving media plan efforts that highlight our destination’s most impactful assets to travelers in these markets. • AI Integration: Continue to utilize AI-based advertising platforms such as Google’s AI Max search feature (a key performance driver in 2025) as well as Demand Gen, which utilizes AI to create optimized digital ads. In partnership with Finn, new and emerging AI-based platforms and products will be evaluated and tested. o NEW – German Market Expansion – Expansion into the German market, while delayed in 2025, will be prioritized. o NEW – Asia Market Expansion ▪ Launch China social media campaign to increase visibility and engagement in this key market. o Brand USA Partnership ▪ Leverage Brand USA’s reach via Optimized Audience campaigns in markets like France, Germany, Mexico, Canada, and the UK, which utilize first-party data to reach international audiences during key timeframes throughout the year. ▪ Participate in specialized campaigns via Brand USA partners such as Canada Air Miles, Price Travel in Mexico, and other emerging opportunities. 2026 Goals – Vacation Rentals Marketing Visit Greater Palm Springs will place a strong and visible emphasis on vacation rentals throughout its 2026 marketing strategy. This segment continues to play a critical role in attracting key visitor audiences, including luxury travelers seeking high-end private accommodations and families or multi-generational groups looking for more space, amenities, and shared experiences. Through targeted campaigns, dedicated creative assets, and close collaboration with industry partners, vacation rentals will remain central to driving visitation, generating economic impact, and supporting regional tourism goals. Custom Campaigns Supporting Vacation Rentals These customized campaigns are designed to reach high-value audiences and influence travel decisions during key periods. Expedia Ambassador Program • Vacation rentals will be featured prominently within the Expedia Ambassador Program, leveraging the reach of 40 top Expedia influencers. Their content will highlight properties that appeal to families, luxury travelers, and group travel— showcasing space, privacy, and amenities that differentiate vacation rentals from traditional accommodations. VRBO Summer/Fall Campaign • Building on three years of strong performance, the 2026 VRBO campaign will again promote vacation rental stays during essential need periods. This program is especially effective for reaching families and multi-generational travelers planning longer summer vacations, as well as luxury guests seeking premium rental homes. New creative and enhanced targeting will inspire both new and repeat bookings. Content Partnerships • Through premium partnerships, including Sunset Magazine and additional lifestyle media, vacation rentals will be showcased in year-round editorial content and photography. These placements naturally appeal to audiences researching family getaways, multi-generational gatherings, and upscale escapes with private pools, spacious layouts, and resort-style amenities. Influencer Marketing • Influencers will share authentic, relatable content demonstrating how vacation rentals enhance family travel, offer flexibility for groups, and provide elevated experiences for luxury audiences. This storytelling helps travelers picture themselves in unique homes, discovering neighborhoods, and enjoying the region together. Collaboration with the STVR Advisory Group • Continue to work closely with the STVR Advisory Group to identify and develop new marketing opportunities and expand Visit Greater Palm Springs’ media library. • Leverage the group’s insights to align marketing strategies with evolving industry trends and community priorities. Year-Round Integration Across Brand Campaigns In addition to customized efforts, vacation rentals will maintain a continuous presence in Greater Palm Springs’ broader brand marketing. Campaign Creative Integration • Vacation rental imagery and messaging will appear across digital, native, video, and content placements in every season. This ensures rentals are consistently represented as a core lodging option—particularly appealing for luxury visitors and families who prioritize comfort, privacy, and unique experiences. New Creative Asset Development • Visit Greater Palm Springs will invest in refreshed photography, video, and campaign assets that highlight a broad range of rental options—from luxury estates to family-friendly homes. These assets will support major initiatives such as the summer brand campaign, new social media series, the VRBO partnership, and additional media programs throughout the year. Data-Driven Insights and Optimization Visit Greater Palm Springs continues to prioritize data-driven decision-making to maximize marketing performance, improve operational efficiency, and ensure responsible use of digital resources. In 2026, the organization will further strengthen its analytics and technology ecosystem by leveraging advanced measurement tools, optimizing media platforms, streamlining internal workflows, and reinforcing data privacy and compliance. These efforts ensure marketing investments are accountable, adaptable, and aligned with evolving consumer behavior and regulatory standards. • Arrivalist – With a full year of Arrivalist data now available, Visit Greater Palm Springs will deepen its understanding of campaign-driven visitation and traveler movement across key drive and fly markets. Insights will be used to evaluate channel and advertising effectiveness, refine audience targeting and geographic focus, optimize messaging, and inform future media planning and budget allocation to drive stronger ROI. Advertising measurement compares exposed visitators to unexposed visitors to calculate incremental lift impact advertising has on arrivals. • NEW - Media Partner Consolidation & Optimization – As the digital advertising landscape continues to evolve, Visit Greater Palm Springs currently leverages multiple platforms and DSPs—including Basis (formerly Centro), Cadent (formerly AdTheorent), Sojern, Perion, and others—to execute campaigns across diverse channels and formats. In 2026, the organization will conduct a comprehensive performance and efficiency review of these platforms to assess ROI, reduce redundancy, and identify opportunities for consolidation that improve effectiveness, streamline operations, and maximize media investment impact. • NEW - ITI Digital (Event Calendar Management) – ITI Digital will be used to modernize and streamline the Visit Greater Palm Springs event calendar by consolidating event submissions into a centralized dashboard. This will significantly reduce manual data entry, accelerate approvals, and enable faster, more accurate publishing—resulting in improved internal efficiency and an enhanced website experience for visitors. • NEW - Osano (Data Privacy & Compliance) – Launched in 2025 and monitored continuously into 2026, Osano will support enhanced data privacy, consent management, and regulatory compliance across Visit Greater Palm Springs’ digital ecosystem. The platform allows for customization across varying state and international regulations, ensuring privacy-first practices are embedded into all digital marketing and website experiences. 2026 Goals – Website The Visit Greater Palm Springs destination website continues to operate within a rapidly evolving digital environment shaped by major technological, behavioral, and regulatory shifts. In response, the team has proactively adapted by updating content for greater visibility within AI-generated search results, auditing and optimizing high-value pages, and aligning website strategy with how travelers now discover and consume information. The summary below outlines the broader industry dynamics influencing website performance and how VGPS is adjusting its approach in 2026. Industry Context & Performance Trends In 2025, the slowdown in website session growth and the decline in traditional on-site conversions were not unique to Visit Greater Palm Springs. These trends reflect structural changes affecting destination marketing organizations industry-wide, driven by evolving technology, shifting user behavior, and the normalization of demand following several years of extraordinary post-pandemic growth. Privacy Laws & the Changing Digital Landscape The digital ecosystem has also been significantly reshaped by expanded privacy regulations and the deprecation of third-party tracking, fundamentally altering how destinations measure performance and reach audiences online. • Increased Privacy Regulations such as GDPR, CPRA, and evolving state-level and international data laws have reduced the availability of user-level tracking and limited the effectiveness of traditional cookies. • Consent-Based Tracking now governs a significant portion of website traffic, resulting in fewer measurable sessions, conversions, and attribution signals—particularly from international and privacy-conscious users. • Loss of Third-Party Cookies has disrupted retargeting, frequency capping, and attribution models that previously drove website traffic and conversions. • Shift Toward First-Party Data has elevated the importance of owned channels such as email subscriptions, visitor guides, and partner referrals as more reliable, compliant performance indicators. These changes do not reflect reduced traveler interest, but rather a new reality in which visibility, influence, and engagement increasingly occur beyond the website and outside traditional analytics frameworks. Digital Shifts Impacting Website Performance • The travel planning journey has fundamentally changed. Travelers no longer rely solely on destination websites as their primary planning tool. Discovery increasingly occurs through AI-powered search results, social platforms, influencer content, and third-party travel tools—often before, or without, a website visit. • Traditional website metrics are declining across the industry. Year-over-year decreases in sessions and pageviews reflect changes in how users consume destination content directly within external platforms, rather than diminished destination relevance. • AI-powered discovery has reshaped visibility and engagement. In 2025, AI-driven discovery increased its share of total search exposure by an estimated 240%, as Google’s AI Overviews began surfacing destination content directly within search results, creating meaningful off-site visibility without corresponding click-throughs. Key Factors Driving the Shift 1. Impact of Google AI Overviews Google’s AI-generated search results now answer many travel-related queries directly on the search page, often directing users to hotels, attractions, or booking platforms without visiting destination websites. This has led to fewer organic clicks and pageviews across the sector, while still supporting traveler decision-making and demand. 2. Shifting Traffic Dynamics Following the post-pandemic surge, industry traffic has stabilized as travel demand normalizes and media costs increase. With a higher baseline, year-over-year growth appears flatter, and achieving incremental gains now requires significantly greater investment. Despite this, VGPS continues to outperform industry benchmarks in several engagement metrics. 3. Evolving User Behavior Travelers increasingly favor mobile-first search, social discovery, and AI-powered tools that deliver fast, targeted answers. Shorter planning windows and closer-in booking behavior result in fewer research-heavy sessions and lower pages per visit—reflecting efficiency, not disengagement. What This Means Traditional website metrics such as sessions and on-site conversions are no longer reliable as standalone indicators of success. These industry-wide shifts underscore the need to diversify channels, redefine performance benchmarks, and evaluate success through both on-site and off-site influence. Despite these external headwinds, Visit Greater Palm Springs continues to outperform industry benchmarks in engagement time, pages per session, and paid media conversion rates, reinforcing the strength of the brand and content strategy. 2026 Website Measurement Approach In 2026, Visit Greater Palm Springs will transition toward a more qualitative, intent-based framework for website success. Performance will be defined not solely by traffic volume, but by content quality, discoverability, clarity, usefulness, and alignment with traveler intent across the full digital ecosystem. Internal tracking will continue to include: • Users and sessions • Conversion rates • Search impressions and visibility • Engagement signals (time on page, visitor guide sign-ups, partner referrals) Qualitative Website Success Priorities • Implement an AI Content SOP to guide creation and updates of all web content, ensuring pages are structured for AI visibility, featured snippets, tables, and search summaries. • Measure organic search impressions and AI referral traffic year over year to understand how often VGPS content appears in AI-generated results. • Grow first-party data, with an emphasis on newsletter subscriptions and owned audience development influenced by paid media. • Ensure content clearly supports traveler inspiration, trip planning, and decision- making. • Maintain consistent alignment with Visit Greater Palm Springs brand pillars and strategic priorities. Traditional metrics like sessions and conversions are less reliable as standalone measures. These challenges and shifts are industry-wide affecting DMOs everywhere, underscoring the importance of diversifying channels to maintain visibility and impact. Traditional website metrics, such as sessions and on-site conversions, are becoming less reliable as standalone indicators of success. Despite these external headwinds, VGPS continues to outperform industry benchmarks in engagement time, pages per session, and paid media conversion rates. 2026 WEBSITE GOALS 2024 GOAL 2024 ACTUAL 2025 GOAL 2025-ACTUAL 2026 GOAL Users 2,604,355 2,935,311 3,082,076 2,756,174 Track only Sessions 3,329,649 3,807,485 3,997,589 3,631,440 Track only Key Pages Engaged 1,174,048 1,267,972 959,127 Track only Action 615,733 634,204 462,458 Track only 2026 Goals - Social Media Social media remains a core pillar of Visit Greater Palm Springs’ marketing strategy serving as a powerful, high-impact channel to inspire travel, spark aspiration, and motivate real-time trip planning. As consumer discovery continues to shift toward visual, social-first platforms, social media allows the destination to showcase its personality, experiences, and year-round appeal in authentic, engaging ways. Through compelling storytelling, creator partnerships, and timely, culturally relevant content, Visit Greater Palm Springs uses social media to influence traveler intent, reinforce brand positioning, amplify partner experiences, and drive demand across both peak and off-peak seasons—meeting travelers where they are and inspiring them to turn inspiration into action. 2025 SOCIAL MEDIA GOALS @VISITGREATERPS @dineGPS (TOTAL COMBINED) 2024 GOAL 2024 ACTUAL (Includes LWK&M) 2024 ACTUAL (Excludes LWK&M) 2025 GOAL 2025 ACTUAL 2025 ACTUALS (excludes viral) 2026 GOAL Impressions 53,000,000 57,043,596 56,487,684 57,500,000 65,906,441 64,909,441 68,676,077 Video Views 9,250,000 16,745,597 15,617,086 15,800,000 28,570,109 20,374,367 21,298,642 Website Clicks 221,500 264,955 264,955 266,000 354,255 354,255 300,000 Engagement 1,384,854 1,323,172 1,330,000 1,632,618 1,390,777 1,462,483 Goals were calculated with a 5% increase, organically and paid, from 2025. Website clicks are reduced from 2025 actuals, but higher than the 2025 goal, as nearly 70,000 resulted from UK Meta campaigns that are currently paused in 2026. Each platform plays a different role in the traveler journey, and our goal is to better align our Paid Social campaigns by platform and KPI goal • TikTok: Reach, awareness, video views, etc. (upper funnel) • Pinterest: Discovery and planning stages Mid funnel awareness and traffic • Meta: Full funnel + retargeting, lookalikes, strong conversions and traffic driver Integrate AI for Efficiencies o Trellis Beta – Releasing in January 2026, AI Agent that will turn social data into insights. VGPS will explore how to apply this to current workflows in 2026. o Generate ideas for multi-platform distribution from one piece of content Key Drivers 1. Organic Social Media 2. Paid Social Media 3. Collaborations with influencers 4. International social media Assumptions • International social media will remain paused beyond Pinterest in Q1 and will be reviewed quarterly to restart. _________________________________ PR/Communications The 2026 PR/Communications Plan builds on the foundation established in 2025, advancing Greater Palm Springs’ national and international reputation through high- quality earned media, deeper media relationships, and strategic alignment with destination priorities. The plan continues to emphasize off-peak travel, air access, meetings and conventions, and community stewardship—while placing increased focus on credibility, consistency, and long-term impact. Success will be measured not just by volume of coverage, but by the quality of storytelling, strength of media relationships, and alignment with Visit Greater Palm Springs’ economic, cultural, and community goals. Domestic Strategy Goal: Strengthen national earned media visibility while reinforcing Greater Palm Springs’ positioning as a year-round, multi-dimensional destination. Key Focus Areas: National Destination Storytelling • Elevate coverage across wellness, arts and culture, architecture, outdoor experiences, culinary and agritourism, and film/creative industries. • Ensure earned media reflects the destination’s depth beyond leisure travel. Air Service Awareness • Continue promoting PSP accessibility and expanded air service. • Secure targeted national placements tied to air service, meetings, and sports. Meetings & Events • Strengthen earned media positioning for meetings, conventions, and events. • Highlight wellness ROI, accessibility, and creative meetings. • Support sales milestones, site visits, IMEX, and IGLTA through coordinated PR. Off-Peak & Midweek Travel • Continue promoting travel during May–December. • Align earned media storytelling with shoulder-season marketing efforts. Film & Creative Industries • Support Film Oasis and film-related earned media through targeted press visits and FAMs. Economic Development: • Promote “Thrive & Shine” and Greater Palm Springs as a place to live, work, invest, and innovate, not just visit. • Support business attraction and retention efforts by positioning the region as a hub for entrepreneurship, creative industries, remote work, sports, and innovation. • Secure earned media that highlights quality of life, workforce talent, infrastructure, and regional collaboration as key economic advantages. • Align PR storytelling with economic development priorities, including air service expansion, sports tourism, meetings, film, and emerging industries. Tactics: • Maintain a steady national media outreach cadence across top-tier and mid- tier outlets such as Travel & Leisure, Wall Street Journal, LA Times, Seattle Magazine. Wanderlust and Rob Report. • Host 75 individual press visits with tailored storylines. • Execute 6 targeted group FAMs (leisure, meetings, Film Oasis, Desert Region). • Deploy themed pitch toolkits to support meetings, wellness, and accessibility narratives. • Conduct quarterly proactive outreach to priority domestic media. Metrics: • 70–80% of coverage aligned with at least one strategic pillar. • 95 meetings, tourism development, and MICE placements. • 10 high-quality placements tied to air service, meetings, and sports. • Average PR Quality Score of 7+ across domestic coverage. International Strategy Goal: Maintain consistent international market presence by promoting luxury experiences, ease of travel, and cultural depth in priority global markets. Canada – Priority Market Focus (2026) Objective: Increase awareness of Greater Palm Springs in Canada as an easy, welcoming, year-round escape destination. Key Focus Areas & Tactics: • Focus on maintaining strong relationships with key media in Canadian market • Increase awareness of Greater Palm Springs as a year-round escape that is welcoming • Pursue additional broadcast and high-impact media opportunities, including lifestyle and travel programming. • Remain agile and responsive to timely editorial and partnership opportunities in the market. • Metrics: Contribute to overall international placement and PR Quality Score targets • Secure broadcast or digital-broadcast exposure when feasible Other Priority International Markets Objective: To garner additional media coverage from the UK & Ireland, France, Germany, Australia, Canada, Mexico, India, and select Asia markets. Luxury, Culture & Adventure • Showcase high-end resorts, cultural events, architecture, and outdoor adventure. • Continue promoting Modernism Week and other globally relevant events. Ease of Travel • Reinforce PSP connectivity and seamless travel experiences. • Align messaging with Visit California and Brand USA campaigns. Tactics: • Conduct media missions aligned with Visit California and Brand USA. • Host 3 international FAMs focused on luxury, culture, and adventure. • Maintain updated international media toolkits through agency partners. Metrics: • Host 3 international FAMs. • Secure 10 top-tier international placements. • Maintain an average PR Quality Score of 7+ for international coverage. Strategic Partnership Partner with Italy’s Mille Miglia event to establish a meaningful VGPS presence at the 2026 event while strategically exploring the opportunity to bring the race—or a future stage or affiliated experience—to Greater Palm Springs and potentially California. This partnership will focus on immersive participation rather than passive sponsorship, allowing VGPS to experience the event firsthand and gain insight into its operations, culture, audience, and brand alignment. While on site, VGPS will host targeted dinners and lunches with select international media, influencers, sponsors, and top-tier participants including potential drivers—to build relationships and position Greater Palm Springs as a future host destination. The program will also explore bespoke gifting opportunities for drivers and key participants that reflect the design, luxury, and lifestyle identity of Greater Palm Springs. In potential collaboration with Visit California, VGPS will use the Mille Miglia experience as a proof-of-concept for how this iconic event could translate to a California setting, helping build a case for broader statewide involvement. Additionally, VGPS will explore the giveaway of a themed travel package tied to the winner of a specific stage of the race, driving both near-term awareness and long-term positioning of the destination as a natural home for a future Mille Miglia experience. Live Sports FIFA World Cup 2026Objective: Leverage World Cup momentum and global media attention to position Greater Palm Springs as a place to escape, reset, and recharge after attending this high-energy events, capitalizing on when travelers are consuming regional content. Focus Areas: • Collaborate with the Marketing team to create earned media opportunities highlighting wellness, balance, and open space. • Use World Cup-related awareness windows to elevate destination storytelling without competing with host-city narratives. • Coordinate with international offices and the domestic PR agency to monitor and act on relevant opportunities. 2026 KPIs: • Earned media placements aligned with World Cup timing • Coverage supporting escape and wellness messaging LA28 Olympic & Paralympic Games Objective: Position Greater Palm Springs as an engaged and values-aligned participant in the LA28 Olympic and Paralympic Games. Focus Areas: • Continue efforts to work with the LA28 Olympic organizing committee to bring the Torch Relay and/or related activations to Greater Palm Springs. • Use LA28 as a platform for earned media storytelling centered on community pride, wellness, inclusivity, and creativity. • Collaborate with Marketing, international offices, and the domestic PR agency to remain alert to emerging opportunities. 2026 KPIs: • Earned media visibility connected to LA28-related moments • Coverage reinforcing Greater Palm Springs’ role within the broader Southern California Olympic narrative Agency Alignment & Accountability Goal: Ensure domestic and international agencies operate as strategic, accountable partners. Key Focus Areas: • Quarterly planning and alignment with all PR agencies. • Ongoing evaluation of qualitative and quantitative performance. • Maintain updated media toolkits and pitch frameworks. Metrics: • Annual performance review. • Issue Domestic PR Agency RFP in alignment with VGPS five-year review protocol. Community & Destination Alignment Goal: Strengthen community trust, regional storytelling, and stewardship across inclusivity, accessibility, and sustainability. Key Focus Areas: Community Understanding & Stakeholder Engagement • Increase clarity around VGPS’s role in economic impact and workforce support • Support partner and community events through storytelling. Regional Storytelling Across Nine Cities • Ensure earned media reflects Greater Palm Springs as a connected, multi-city destination. • Develop city- and region-focused story angles in collaboration with partners. Diversity, Inclusion & Accessibility • Continue highlighting Certified Autism Destination status • Amplify Indigenous heritage, workforce development, and inclusive tourism initiatives. Sustainability & Thought Leadership • Integrate sustainability and DEIA authentically into earned media narratives. Crisis Planning & Preparedness • Build on 2025 Crisis Communications learnings. • Develop proactive crisis playbooks to support partners and stakeholders. Tactics: • Host 2 stakeholder workshops. • Distribute 2 communications toolkits. • Publish 2 thought leadership pieces. • Develop 2 Crisis Playbooks based on 2025 learnings. Metrics: • Earned coverage representing all nine cities. • 2 placements tied to DEIA or sustainability. • Increased stakeholder alignment and message consistency. 2026 EARNED MEDIA GOALS *Out of the 11,813 score: • 1214 can be attributed to IGLTA media • 1224 can be attributed to one story (This Palm Springs Hotel Blends Mid-Century Cool with Unexpected Value” that was syndicated 136 times • 402 can be attributed to one story (The Year that was and get set for 2026) that was syndicated 67 times *2024 Goals far exceeded due to media exposure from LIVE with Kelly & Mark and London Design Festival. • PR Quality Score is a point-based system of evaluating the quality of media. Media is rated on a scale of 1-12 based on story type, media tier, visuals, URL, DMO mention, and reader response. This is done through an internal point scoring system. Consumer Earned Media 2024 GOAL 2024 ACTUAL 2025 GOAL 2025 ACTUAL 2026 GOAL PR Quality Score 6,900 10,850* 8,500 11,813* 9,200 Media Outreach/Assists 2,550 2,724 2,700 3,346 3,200 Media Value Tracking $98,732,755 Tracking 109,879,936 Tracking CS Earned Media Earned Media Placements 75 83 90 116 120 _________________________________ Tourism Development The Tourism Development team promotes Greater Palm Springs as a desired location to travel trade clients and airline network planners across all global markets, focusing on attracting tourism and enhancing air service to our destination. By focusing on these strategies and initiatives, Tourism Development aims to drive measurable growth, expand market reach, and position Greater Palm Springs as a premier global destination. Forecasters predict demand for 2026 to be driven by major events like the FIFA World Cup and the nation's 250th anniversary, which will boost international arrivals and business travel. Domestic leisure travel will remain strong, but growth is expected to slow, and consumer caution is increasing due to economic and political uncertainty. Challenges: The biggest concerns for the travel industry in 2026 are expected to be from economic uncertainty and consumer caution, supply-side operational constraints (like labor shortages), and geopolitical and policy issues. The Tourism Development team will also be closely monitoring these other potential challenges and adjusting strategies as needed; Full or partial government shutdowns - Ease and costs of obtaining a Visa for travel to the U.S. - Negative perceptions at our international borders - Traveler concerns due to possible enhanced screening procedures at U.S. borders - Brand USA funding - Possible rising entrance fees at US national parks for non-residents. 2026 Travel Trade Goals The U.S., Canada, and Mexico source markets represent a significant amount of our visitors in our peak season. Our B2B efforts will focus on high value guest stays, increasing average length of stays, promoting ancillary destination experiences and niche travel segments. The overseas markets are vital for our summer and fall need periods and require consistent and long-term programming, despite any current geo-political or economic issues. We will continue to strengthen destination awareness with a main goal of driving visitation during our off-peak periods. Primary markets are the U.K., France, Germany, and Australia with secondary markets consisting of Scandinavia, India, Ireland, Italy, Belgium, Switzerland, South Korea, China, Japan, Brazil, and Southeast Asia. • NEW - Event Tourism: Targeted marketing, client events, new itinerary development, trainings, etc. to raise destination awareness in countries assigned to World Cup matches on the U.S. West Coast and Western Canada. Additional focus related to visitation around America 250, Summer Olympics and the Route 66 Centinel celebrations. • NEW - Summer Activity Offerings: Develop a SWOT analysis of four comp set destinations to compare the depth and breadth of activities and experiences offered in the summer and fall periods while also sharing findings with our partners. • NEW - Resilient Markets: Initiate and expand client engagement and programming in markets (Eastern Europe, Middle East, Southeast Asia, Brazil demonstrating less travel resilience with current geo-political and economic challenges. • Client FAMS and Destination Trainings: Destination awareness through hosted FAMS, partnerships with Visit California, Visit USA Committees, and Brand USA. • Collaborative Itineraries: Work with regional DMOs to develop and promote unique, multi-regional itineraries directly to the travel trade. • Educational Webinars: Conduct GPS Next International Edition webinars allowing partners to meet face-to-face with clients across all global markets. • Robust Program of Work: Provide partners with opportunities to engage in person with key travel trade clients through organized programs. • Market-Specific Goals & Programming: Execute targeted destination trainings, client engagements, events, and marketing efforts through full-time representation offices in the U.K., France, Germany, and Australia. Programming in secondary and emerging overseas markets via project contracts with in- market Visit California agencies. • Vacation Rental Focus: Increase awareness of vacation rental options via destination training and marketing campaigns. • Cultural and Bespoke Campaigns: Develop campaigns with cultural and tailored experiences to keep Greater Palm Springs top-of-mind globally. • Inspirational Marketing Campaigns: Develop targeted campaigns with strategic alignment addressing country or region-specific travel behavior and perceptions across Europe, Asia, Mexico and Canada. • Foster Relationships: Build strong client connections through sales missions, client FAMS, and participation in relevant trade shows. Quantitative Goals – Travel Trade • Marketing Campaigns  Execute 25 measurable B2B2C marketing campaigns leveraging multiple channels like digital, print, webinars, and more. Align campaigns with Visit GPS, Visit California, and Brand USA to amplify ROI. • Sales Missions, Trade Shows, Client Events, Destination Trainings  Attend 100 travel trade programs domestically and internationally, including one consumer show supporting the Desert Region. • Client FAMS and Destination Visits  Host 100 key travel trade clients through FAMS and destination visits, prioritizing accounts that drive off-peak occupancy. _________________________________ AIR SERVICE 2026 Goals Air Service remains an important focus as we will continue to utilize the resources of our aviation consultant, Ailevon Pacific, while partnering with Palm Springs International Airport to responsibly grow air service for both visitors and residents. With a long-range goal of positioning Greater Palm Springs as an alternative gateway to the Southwest while also driving tourist demand in our off-peak periods, we will work to support the airport’s updated Master Plan to better serve new markets, including non-stop, and future overseas routes. Tactics: • NEW - Develop a tailored incentive plan (MRGs, marketing, reduced landing fees, etc.) for extended seasonal flights, and / or new routes. • NEW - Implement a new GPS Next Aviation webinar, twice a year, to educate partners on current air service development projects, industry trends, airport updates, etc. • Season extension and / or year-round: Chicago, Atlanta, Salt Lake City, Northeast, Minneapolis, Chicago, and Houston. • Increase capacity & focus on success: U.S. Northeast and Mid-Atlantic markets. • Pursue new seasonal, nonstop flights based upon data and research/ visa/ leakage/ markets. Examples: Detroit, Spokane, Philadelphia, Kansas City, St. Louis, Omaha, and Indianapolis. • Capitalize and leverage the 2026 World Cup and 2028 Olympics to position Greater Palm Springs as an alternative gateway to the Southwest for these events, which help to drive demand during off-peak times. • Proactive communication with airline network planners on airport incentives, destination events, and new products. • Continue to build relationships with network planners of foreign based carriers • Support PSP’s master plan for an FIS / Customs & Border Patrol. • Work with VGPS Marketing team in co-op destination marketing with airlines, including frequent flyer marketing opportunities. • Maintain presence at airline industry conferences while making personal visits to airline headquarters. • Prepare for future international service, advocate for an FIS to allow for new air service from secondary Canadian markets, Mexico, and Europe. • Continue to focus on Canadian recovery and supporting Canadian carries with marketing. _________________________________ Regional Collaboration ECONOMIC DEVELOPMENT Market the Region • Promote “Thrive & Shine” brand o Launch new campaign to market the Valley as a Lifestyle Destination to attract investment, work force talent (medical), entrepreneurs and remote workers. Highlight our lifestyle amenities, climate, and cultural richness as assets for talent attraction and business relocation. o Highlight local industry “ambassadors” in target industry clusters • Publish 12 blog posts for the Economic Development blog • Distribute two regular economic development newsletters. o One monthly local focused for partners and stakeholders o One quarterly economic development “sales” focused newsletter to clients and sales leads - launch in q2 ▪ Develop and implement email lead generation plan (LinkedIn campaign, research buying lists, conference email lists, etc.) • Create at least four organic “thought leadership” content for LinkedIn, in addition to targeted LinkedIn advertising • Earn at least 1 tier one media placement focused on regional economic development • Earn at least 25 media placements that highlight regional economic development • Participate in at least 2 speaking or thought leadership presentation opportunities a year including conference panels, podcasts, interviews, industry group presentations, and more. • Attend at least the following trade shows to market GPS for economic development: o Meet the Consultants o Select USA o Site Selectors Guild Fall Forum • Plan and execute at least 8 site and/or FAM tours for site selectors, CEO’s, developers, and others with potential to bring business to the Coachella Valley. o Integrate appropriate clients with other planned FAMs o Utilize tickets/passes from existing sponsorships • Directly assist at least 6 companies interested in establishing a new presence or expanding in Greater Palm Springs • Support VGPS sales in targeting Business and Innovation Events o Use resorts and conference centers to attract industry summits, investor forums, and startup showcases. Placemaking & Development • Advocate for the Greater Palm Springs Legislative Platform priorities with local, state, and federal lawmakers and agencies to improve infrastructure and reduce barriers for development and support industries • Identify location, funding, and partnership for an indoor amateur sports facility with groundbreaking in 2027 • Support foreign trade zone utilization and expansion & foreign direct investment for the region • Provide targeted recommendations to City Managers and Technical Advisory Committee (TAC) members on high-value industry conferences to attend, and actively support their participation: such as the Entertainment Experience Conference and ICSC Las Vegas. Workforce Development • Meet at least once a year with industry cluster groups or individual employers to understand workforce development needs and successes • Work with CSUSB and UCR to Establish Joint Research and Workforce Initiatives o Focus on lithium tech, sustainability, Agtech, and advanced manufacturing. • Work with OneFutureCV to Support Dual Enrollment and Early College Pathways o Partner with high schools to expose students to higher education programs earlier. • Identify and engage existing efforts that function as a Regional Talent Consortium, and explore opportunities to amplify, align, and strengthen their collective impact. o Align curriculum, internships, and job placement across COD, UCR, and CSUSB. o Host at least one meeting with these organizations to discuss • Research funding and support for a “Stay Local” Fellowship Program: Providing paid internships and mentorships with local employers for recent grads. Research & Reports • Facilitate presentations of the Coachella Valley EDSP and promote it to local governments, non-profits, and industry partners to identify Lead agencies for each action item. • Support Creative Economy Development Plan and share with partners when completed • Create data/report tool for development support • Provide JobsEQ and other relevant on-demand data for developers, site selectors, and partners Events & Engagement • Host quarterly TAC roundtables • Develop Advisory Council to support funding and provide feedback and industry support o Meet quarterly • Explore Regional Business Concierge Program o Gather information on what is currently happening in each city for stream- lined permitting, licensing, and site selection support o Promote on website • Develop a Shared Business Incentives Toolkit Online o Share a guide of all tax credits, fee waivers, and infrastructure support to reduce friction for investors and entrepreneurs. • Explore options for a model ordinance or consultant that can help Standardize Zoning and Development Review Processes to Promote consistency in land use regulations and timelines across cities. • Establish a Valley-Wide Business Retention Task Force o Host quarterly o Coordinate outreach and support for existing employers to prevent relocation or closure. • Explore Economic Development event partnerships with State of the Fourth District, Commercial Real Estate Event, Off-Season Wellness Festival, or arts & culture event • Plan study tours for REACH and Greater Phoenix/Scottsdale and invite TAC or other partners 2026 GOALS 2026 Stretch Revenue $50,000 $65,000 Blog Posts 12 15 Tier 1 Media Placements 1 3 Other Media Placements 25 35 Thought Leadership Panels, podcast, op-ed 4 6 LinkedIn LinkedIn Followers 400 450 Impressions Engagements Website Clicks Video Views 397,000 700 12,600 72,200 435,000 800 15,000 82,000 _________________________________ Tourism Foundation & Workforce Development Expand Scope • Continue to facilitate rebranding of the Foundation to reflect expanded mission: o Create narrative and talking points to launch the TEAM GPS Foundation o Create donor schedule and campaigns to leverage social media o Facilitate dynamic, engaging creation of content for social media reflecting impact of the foundation • Complete updated annual impact report and publish on website. • Expand Foundation board, update board members role & responsibilities document, create board orientation document Foundation Fundraising • Diversify funding streams for the Foundation to support expanded workforce development and youth engagement programs: o Pursue grant opportunities aligned with foundation priorities – work with a Grant Writer to identify these opportunities o Explore sponsorship opportunities with local events and organizations to amplify program impact • Maximize sponsorship and stakeholder experience to produce major fundraising events: o Champions of Hospitality o Golf Tournament • Create a new fundraising event to align with Restaurant Week – Chef/Student Dinner featuring student culinary programs that pairs local Chefs with students from these programs Champions Program • 16 in-person training classes at VGPS or at partner sites • Promote online Champions training o Create and implement a strategy to market to groups – focus on workforce for seasonal and/or events (e.g. Modernism, BNP, Date Festival, etc.) • Develop two new 1-hour TEAM GPS 2.0 training courses with .ppt decks / online delivery o Topics: ▪ The 4 Cs of Sustainability ▪ Inclusion and Accessibility • Enhance engagement with the Ambassador network in 2026 through: o 6 mixers/experiential events o 6 Huddle Webinars o 2 bus tours • Ambassador benefits o Source opportunities and deliver information via email to TEAM GPS Ambassadors o Total of 20 opportunities to experience free events and/or discount admission to attractions • Form an Ambassador Network Volunteer Steering Group of current TEAM GPS Champions, as appropriate, to strengthen engagement, enhance events and experiences, and provide ongoing feedback. Youth Engagement • Facilitate year 3 of “Passport to Leadership” high school summer leadership program o At least 12 students o Expand curriculum to include industry clusters identified by ED priorities • Host year 2 of Student Hospitality Day in partnership with all three school districts to expose high school students to careers in hospitality o Expand engagement to 120 students • Provide mentorship and guidance to Young Professionals Advisory Board so that they can produce (1) awareness building/fundraising event in 2026 • Support hospitality industry conference attendance for college hospitality students o 2 from COD for Visit CA’s Outlook Forum o 2 from CSUSB for DI’s Annual Convention o 1 student to attend CalTravel’s Advocacy Day Supporting Scholars & Students • Continue to support of OneFuture and school district collaborations as Co-Chair of OneFuture’s Business Engagement Committee: o Explore production co-op to create content for Economic Development featuring CTE pathways and academies across the 3 school districts o Continue to manage Scholarship Program – college scholars, CVHS Tourism Academy, and study abroad scholarships Workforce Training & Leadership Development • Continue to manage partnership with College of the Desert’s PaCE Program: o Promote Essentials Leaders program o Launch Visionary Leaders program • Join COD Palm Springs campus Hospitality Working Group to ensure hospitality curriculum and programs at new campus align with industry needs • Host quarterly Workforce Readiness Committee meetings • Convene a meeting with organizations in the Coachella Valley focused on providing Leadership Training and Education Programs to align priorities and pathways • Explore State and County pre-apprenticeship and apprenticeship opportunities to unlock funding for the Foundation and other Coachella Valley organizations Promoting Hospitality Careers & Pathways • Via: o Social media o Website updates o Media campaigns _________________________________ Stewardship Sustainability Visitor-Focused Sustainability Content • Continue the “Sustainable Stories” social media series to promote Greater Palm Springs as a sustainability-driven destination. o 4 reels a year Sustainability Thought Leadership • Work with Communications & Finn Partners on opportunities to present at conferences like NYC’s Climate Action Week in September 2026 Group Sales Market Sustainability Focus • Equip partner hotels to competitively address sustainability in Group Sales: o Continue to deliver sustainability presentation – The 4 Cs of Sustainability during Sales Missions and offer direct consultation with meeting planners to align with their sustainability priorities. o Promote the Sustainable Meetings Toolkit, including: o A Sustainability Webinar o A Sustainability Checklist o The PCMA Whitepaper o Ensure these resources are hosted on a dedicated Sustainability page within the Meetings site. Partnership with Kind Traveler • Provide support to onboard 5 additional properties to Kind Traveler program and amplify its impact to support local non-profits. Cultural Tourism Accessibility Promotion • Finalize and promote 30 total businesses and Greater Palm Springs being “Destination Verified” by Wheel the World • Develop Accessibility focused webinar for partners Certified Autism Destination • Add 10 more Certified Autism Centers in 2026 • Promote autism certification grant program through foundation Inclusion Training • Organize comprehensive training for VGPS staff and partners to deepen understanding of inclusion and the diverse experiences of travelers, ensuring a welcoming environment for all – work with Dr. Bella and IGLTA Gender Diverse Advisory on training for partners and staff • Co-author journal article with Dr. Bella Vongvisitsin from Hong Kong Metropolitan University on “Visit Greater Palm Springs’ initiatives in promoting a sense of community and engaging with youths, especially those from LGBTQ+ backgrounds.” Support for Underserved Communities • Promote partnership with Caravanserai Project to support a cohort of local artists and artisans with business training and opportunities to expand their networks and visibility. o Create visitor facing content featuring artists o Plan and facilitate showcase event in the Fall of 2026 to highlight this partnership Advocacy Legislative Advocacy • Pursue funding for priority initiatives in the 2026 Legislative Platform: o Workforce development training programs o Grants to support businesses in becoming autism-certified • Promote SB 346 cleanup bill to include JPA’s • Monitor legislation and promote 2026 Legislative Platform • Meet at least once with key legislators and government representatives to share legislative priorities Regional Sustainability Initiatives • Engage with Blue Zones initiatives in Palm Springs/Coachella and report to staff/board/partners on initiatives and opportunities. o Highlight in at least 2 blog or social posts • Participate in CVAG meetings of Sustainability Directors from the member cities, and Riverside County to strategize and align sustainability goals to create a unified regional approach. Vacation Rental Education/Research Refresh local “One Coachella Valley: Short-term rental, Long-term benefits” Campaign • Utilize results of 2025 Coachella Valley Resident Survey to refresh campaign creative and messaging. • Promote the benefits of well-regulated vacation rentals to the local community. • Enhance awareness and support for vacation rentals as a positive contributor to the Coachella Valley. Partnership with Rent Responsibly • Create location regulations guide and share with real estate agents and hosts • Host 2 in-person and 2 online host education webinars with Rent Responsibly o Explore “host verification” program with Rent Responsibly to highlight good operators Stakeholder & Partner Engagement • Provide annual STVR TBID marketing update for stakeholders • Meet with all 9 cities and the county at least once to discuss TBID collection and help improve processes • Meet at least once with Airbnb and Expedia to discuss TBID collection Restaurant Week & Spa Month Restaurant Week 2026 May 29 – June 7 • At least 120 restaurant participating • Host restaurant bootcamp to support participating restaurants • Add 2 additional sponsors • Maintain sponsorship from all nine cities at some level Spa Month 2026 • Add sponsorship levels and secure at least 5 sponsors • Host Spa Month bootcamp to support participating spas • At least 40 participating spas or wellness events Partnership & Community Engagement Continued No-Cost Benefits • Maintain free benefits for tourism-related businesses in the Coachella Valley, including: o Basic website listings. o Invitations to partner events. o Brochure distribution in the Visitor Center. o Opportunities to participate in FAM tours. Affordable Advertising & Sponsorship Opportunities • Collaborate with DTN to offer partners website advertising opportunities. •Provide low-cost co-op advertising and event sponsorship opportunities to help businesses amplify their visibility. Enhanced Partner Communications •Strengthen engagement with partners by increasing communication about: o Visit Greater Palm Springs’ efforts to promote the valley o Opportunities for participation in campaigns and initiatives •Use a variety of channels to connect with partners, including: o Email communications o Presentations to local community groups o Updates via @teamgreaterps social channels o Webinars to share insights and opportunities PARTNERSHIP & TOURISM FOUNDATION REVENUE GOALS 2025 Goal 2025 actual 2026 Goal Stretch goal Partnership Revenue $180,000 $172,929 $180,000 $210,000 DTN-Website $100,000 $113,891 $100,000 $120,000 Restaurant Week $80,000 $86,300 $80,000 $100,000 Spa Month $15,000 $25,000 Total $360,000 $373,120 $375,000 $455,000 Fundraising Oasis Awards Gala $125,000 $151,695 $150,000 $165,000 Golf Tournament $35,000 $40,109 $35,000 $40,000 Other (auctions, sponsors) $25,000 $19,546 $25,000 $30,000 Grants $50,000 $27,500 $50,000 $60,000 Total $235,000 $238,850 $260,000 $295,000 TEAM GPS Registrations (in-person) 150 174 150 180 Registrations (online) 200 78 100 130 Visit Greater Palm Springs is committed to adapting and evolving as market conditions fluctuate. We stay closely connected to our stakeholders, ground our decisions in timely research and performance data, and make disciplined adjustments when needed—so our resources are deployed efficiently and deliver the strongest possible outcomes for our nine-city destination. POWER POINTS CITY COUNCIL MEETING FEBRUARY 17, 2026 February 17, 2026 1 City Council Regular Meeting February 17, 2026 City Council Regular Meeting February 17, 2026 PUBLIC COMMENT – MATTERS NOT ON THE AGENDA 2/18/2026 1 2 February 17, 2026 2 City Council Regular Meeting February 17, 2026 CLOSED SESSION IN PROGRESS 3 4 February 17, 2026 3 5 6 February 17, 2026 4 City Council Regular Meeting February 17, 2026 PUBLIC COMMENT – MATTERS NOT ON THE AGENDA 2/18/2026 City Council Meeting February 17, 2026 P1 – SilverRock Development Project Status Update 7 8 February 17, 2026 5 City Council Meeting February 17, 2026 P2 – Visit Greater Palm Springs Presentation from Vice President of Government and Industry Relations, Davis Meyer and Colleen Pace, Chief of Sales and Marketing V I S I T G R E A T E R P A L M S P R I N G S A N N U A L U P D A T E February 17, 2026 9 10 February 17, 2026 6 2024 ECONOMIC IMPACT OF TOURISM 14.5 million visitors generated a total economic impact of $9.1 billion. This is the equivalent of more than $9,000 per household in the region. Total state and local taxes generated by visitor spending reduced the tax burden by $5,900 per household regionally. Direct visitor spending sustained more than 40,000 direct jobs in the region. Visitors spent $20.4 million per day,on average, in the Coachella Valley. SOURCE: TOURISM ECONOMICS REPORT 2024 2024 ECONOMIC IMPACT OF TOURISM – CITY OF LA QUINTA Tourism generated a total economic impact of $1.1 billion. SOURCE: TOURISM ECONOMICS REPORT 2024 This is the equivalent of more than $10,900 per household in the city, on average. Visitors spent $2.5 million per day, on average, in La Quinta. Direct visitor spending sustained more than 5,200 jobs in the city. Total state and local taxes generated by visitor spending reduced the tax burden by nearly $6,700 per household in a Quinta, on average. 11 12 February 17, 2026 7 DESTINATION STEWARDSHIP PLAN Hunden Partners was selected to lead the development of our Destination Stewardship Plan, bringing deep expertise in destination planning and sustainable tourism strategy. Expanded scope to include nine city-specific master plans,ensuring each community’s unique priorities, opportunities, and challenges are directly reflected. City master plans will roll up into a comprehensive overall Destination Stewardship Plan, creating a cohesive regional vision both locally actionable and regionally aligned. Approach balances local needs with regional strategy, supporting sustainable growth, community stewardship, and an exceptional visitor experience across the destination. 2026 KEY RESEARCH INITIATIVES Resident Sentiment Study:Captures local perceptions of tourism and community quality of life. Image & Awareness Study:Tracks brand awareness and destination perception across key markets. Visitor Intercept Study:Provides ongoing, real- time insight into visitor behavior, spending, and experience drivers while in-market. 2025 Tourism Economic Impact Study:Updates the region-wide economic contribution of tourism. 2025 Tourism Economic Impact Study: Updates the region-wide economic contribution of tourism. Meetings: Identifies behaviors, motivations and booking patterns of meeting planners. Restaurant Week Survey: Measures visitor engagement and economic impact. Rove Dashboards: Anticipated platform launch in 2026 to consolidate key datasets into a single, accessible reporting environment. 13 14 February 17, 2026 8 PRIORITY AREAS OF FOCUS Regional Collaboration & Economic Diversity: Grow regional initiatives to include expanded workforce development Launch the new economic development website and campaign Focus on the development of an indoor sports complex Stewardship: Develop strategies around sustainability, cultural heritage, accessibility, community engagement and advocacy Increase Demand: Expand the initiatives for the need periods: (June-September) (May and December) Expand off peak marketing for air service development Develop sports strategy to attract new sporting events, especially during the need periods INCREASE DEMAND – OFF-PEAK EMPHASIS 2 15 16 February 17, 2026 9 A I R S E R V I C E 2026 NEW AIR SERVICE SOUTHWEST: •New seasonal service from Austin (AUS) UNITED: •New seasonal service from Newark (EWR) •Returning seasonal service from Washington, D.C. (Dulles/IAD) ALASKA: •Service extension from Boise (BOI) •New market from Santa Rosa (STS) •Frequency increase from Portland (PDX) AMERICAN: •New Charlotte (CLT) seasonal service •Frequency increase from Chicago (ORD) DELTA: •New seasonal service from Austin (AUS) •Frequency increase from New York (JFK) New nonstop flights and expanded air service: 17 18 February 17, 2026 10 C O N V E N T I O N S A L E S KEY 2023 CONVENTION SALES STATS2025 CONVENTION SALES STATS $238M estimated economic impact 262,061 definite room nights 428 meetings booked 82,291 estimated jobs supported by VGPS bookings 1,620 hotel leads 19 20 February 17, 2026 11 KEY 2023 CONVENTION SALES STATS2025 CONVENTION SALES STATS – OFF PEAK 47,545 31,218 61,513 26,000 24,500 30,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 May & Sept Summer Q4 2025 Off Peak RN Production vs Goal by Period Production Goal 2025 MEETINGS/GROUP SUMMARY CITY OF LA QUINTA HOTELS $2 Million Estimated TOT Generated 479% ROI $63.3 Million Economic Impact 859 Leads 76 Bookings 61,389 Booked Room Nights 20,014 Jobs Supported $345,236 JPA Funding from La Quinta 21 22 February 17, 2026 12 KEY 2023 CONVENTION SALES STATS2025 CONVENTION SALES STATS – OFF PEAK LA QUINTA EVENT SUPPORT – LA QUINTA RESORT & CLUB $40,000 each year in sponsorship $15,000 in sponsorship in 2026 June 15-20, 2025 Contracted room nights: 1,122 August 1-6, 2026 Contracted room nights: 1,122 November 15-19, 2026 Contracted room nights: 910 23 24 February 17, 2026 13 2026 GOALS/OBJECTIVES •Off-Peak Bookings & Sales Focus •Partnership and Collaborations •Marketing and Strategic Partnerships •Sports Market Committee/Funding •Customer Advisory Board (Mentor/Mentee Structure) D E S T I N A T I O N M A R K E T I N G 25 26 February 17, 2026 14 2025 CAMPAIGNS: SEASONAL & ALWAYS ON •Brand Campaign: "Escape Your Ordinary"•Summer Brand + Social Media Campaign•Oasis of Art•Dine GPS / Restaurant Week•Spa Month•Group Meetings Campaign: "The Oasis is Real"•Benefits of Tourism •Workforce Development DINING & SHOPPING ARTS & ENTERTAINMENT OUTDOOR EXPERIENCES LGBTQ+CULTURE & HERITAGE HEALTH & WELLNESS •Spring Getaway / Staycation Campaigns•Direct Flight: "Time To Fly"•VGPS Co-op Programs •Social Media “Dine Series”•Vacation Rentals (consumer) •Vacation Rentals / One Coachella Valley (local)•International Campaigns•LGBTQ+ 2025 MARKETING RESULTS 22M website usersconvention sales impressions 2.7M total impressions generated30.8B+ 2.3M television spots 528K total social media followers in 2025 28.5M social media video views Record-setting year! 27 28 February 17, 2026 15 ESCAPE YOUR ORDINARY TV SPOT EVENT SUPPORT 29 30 February 17, 2026 16 SOCIAL MEDIA 30.4K views 176K views 13.6K views 2025 WEBSITE LANDING PAGE – LA QUINTA ENGAGEMENTS VIDEO VIEWS IMPRESSIONS ENGAGEMENTS partner referrals 810 PAGEVIEWS things to do 6,296 restaurants 2,404 places to stay 1,220 12,571 home page views 31 32 February 17, 2026 17 2026 GOALS/OBJECTIVES: MARKETING NEW BRAND CAMPAIGNS: WHERE YOU SHINE •Launch the "Where You Shine"campaign focusing on international and LGBTQ+ audiences PILLAR SUPPORT •Escapes Video Series: Promote our new six- episode video series. •Social Media Series:Create a new series of short form content. •Promote outdoor adventure and sports OFF-PEAK VISITATION •NEW Summer Brand + Social Media Campaign "Play for Days" •VRBO Summer/Fall Campaign 2026 GOALS/OBJECTIVES Expedia Ambassador Summit •40 content creators, 11M combined reach Expanded TED Conference Sponsorship •Sponsorship of Restore Lounge •Custom Content + Promotion International •FIFA World Cup & Olympics •Canada – Brand USA co-ops & Canadian Airlines •Germany - expansion •China - social media channels 33 34 February 17, 2026 18 /CANADIAN SUPPORT TOOLKIT ENGAGEMENTS VIDEO VIEWS IMPRESSIONS ENGAGEMENTS •Custom-designed window clings for local businesses, personalized by city •Partner toolkit with ready-to- use graphics and messaging for digital and print use Launching February 2026 to welcome back Canadian visitors and highlight community support. P R / C O M M U N I C A T I O N S 35 36 February 17, 2026 19 2025 COMMUNICATIONS/PR KEY RESULTS 7.2 BILLION+ TOTAL CIRCULATION 1,457 TOTAL EARNED ARTICLES 11,813 EARNED MEDIA PR QUALITY SCORE 8.1 AVERAGE SCORE PER ARTICLE 177 MEDIA VISITS AND GROUP FAMS HOSTED Record-setting year! 2025 PRESS COVERAGE: LA QUINTA 37 38 February 17, 2026 20 PR/TRADE REPRESENTATION Finn Partners UNITED KINGDOM Full-Time Rep MN'O Organisation FRANCE Full-Time Rep Msi GERMANY Full-Time Rep Aviareps – Visit CA CHINA Ad-Hoc Projects Sartha Marketing – Visit CA INDIA NEW - Full-Time RepGate 7 – Visit CA AUSTRALIA Full-Time Rep JAPAN Ad-Hoc Projects Connect Worldwide – Visit CA SOUTH KOREA Ad-Hoc Projects iConnect– Visit CA Atlantic Link – Visit CA SCANDINAVIA Ad-Hoc Projects MMGY NJF PR UNITED STATES Full-Time Rep Connvoc & Visit CA MEXICO Ad-Hoc Projects REGIONAL COLLABORATION, ECONOMIC DIVERSITY, PARTNERSHIP & COMMUNITY ENGAGEMENT 39 40 February 17, 2026 21 2024 ECONOMIC IMPACT OF STVRs – COACHELLA VALLEY SOURCE: TOURISM ECONOMICS REPORT 2024 Economic Impacts in Context Spending, jobs, and income impacts of short-term vacation rentals throughout the destination 2024 ECONOMIC IMPACT OF STVRs – LA QUINTA SOURCE: TOURISM ECONOMICS REPORT 2024 Economic Impacts in Context Spending, jobs, and income impacts of short-term vacation rentals in the City of La Quinta 41 42 February 17, 2026 22 VACATION RENTAL SENTIMENT - LA QUINTA RESIDENTS Q.In general, do you support or oppose welcoming responsible Short-Term Vacation Rentals, otherwise known as SVTRs in (city/your community)? 91%Support (strongly or somewhat) Up from 76% in 2023 Survey SOURCE: SEPTEMBER 2025 J WALLIN OPINION RESEARCH SURVEY 2025 KEY WORKFORCE DEVELOPMENT STATS 184 leadership institute graduates 400+ high school students engaged in outreach 181 scholarship applications, 10 college scholars 252 new destination ambassadors $50,000 in scholarship funding $24,000 travel/study abroad scholarships $30,000 leadership training for workforce scholarships $239,075 raised for the tourism foundation 43 44 February 17, 2026 23 WORKFORCE DEVELOPMENT & FOUNDATION 2026 GOALS NEW Restaurant Week Chef/Student Dinner •NEW Launch Visionary Leaders in Partnership with COD • Passport to Leadership & Student Hospitality Day • THANK YOU for your support of Autism Certification! NEW – Champion the Coachella Valley Regional EDSP NEW –Establish a regional economic development advisory board and valley- wide business retention task force Full implementation of the marketing and communications plan 2026 ECONOMIC DEVELOPMENT GOALS LiveWorkGPS.com 45 46 February 17, 2026 24 AMATEUR INDOOR SPORTS FACILITY Synergy Sports Analysis •Facility size for Greater Palm Springs would be approximately 200,000 square feet •10 full-sized courts allowing for 10 basketball, 20 volleyball, 30 pickleball courts; wide variety of uses •560,000+ estimated annual attendees •Incorporate accessibility and sustainability into design and operations 2026 VGPS Goals Identification of estimated funding & financing options Roadmap for implementation Identify location with potential groundbreaking in 2028 2026 RESTAURANT WEEK & SPA MONTH RESTAURANT WEEK May 29 – June 7 SPA MONTH September •Flexible participation options including day passes, service offers, and wellness events •Multi-channel marketing campaign targeting locals and visitors •Restaurant bootcamp and toolkit •Flexible menus and pricing options for breakfast, lunch, and dinner •Multi-channel marketing campaign targeting locals and visitors •Earned media, television, billboard, radio, digital, print, social & influencers in English and Spanish •Promotional materials provided to participating restaurants •Earned media, television, billboard, radio, digital, and social & influencers •Promotional materials provided to participating spas 47 48 February 17, 2026 25 Thank you! APPENDIX 49 50 February 17, 2026 26 KEY 2025 AIR SERVICE STATS Data above is for CY 2025 and includes inbound and outbound air service 3.3M total number of passengers 2.4M total seats 74% average load factor 6% increased seat capacity over previous year VGPS TOTAL FY 25/26 BUDGET: $33.3M 83% TID 82.2 % TBID 8.7% Private 9.1% JPA TBID – Hotels (50+ Rooms) Contribute 3% TOT TBID – Vacation Rentals Contribute 1% TOT Funding Source Allocation 88% 12% Sales & Marketing Admin & Operations 51 52 February 17, 2026 27 GREATER PALM SPRINGS CITY OF LA QUINTA (1.0% of VGPS Funding Overall) 12.1% of JPA Funding 82.2 % TBID 8.7% Private 9.1% JPA TBID – Hotels (50+ Rooms) Contribute 3% TOT TBID – Vacation Rentals Contribute 1% TOT TOTAL FY 25/26 BUDGET: 33.3M FUNDING SOURCE TBID – Hotels with 50+ Rooms Contribute 3% $22,764,075 TBID – Vacation Rentals Contribute 1% $3,079,822 JPA Funding from 9 Cities & County $2,848,884 Private Revenue, Tribal Voluntary & Other Sources $4,638,208 JPA Funding from La Quinta $345,236 Funding Allocation 88%Sales & Marketing 12% Admin & Operations 2025 VISITOR INTERCEPT STUDY Compari son SOURCE: DOWNS & ST. GERMAIN RESEARCH Top Reasons for Visiting* *Up to three responses permitted Arts & CultureSpecial EventsOutdoor RecreationVacation 17%22%24%53%1st Quarter 14%30%23%50%2nd Quarter 16%25%21%52%3rd Quarter 24%35%45%51%4th Quarter 53 54 February 17, 2026 28 2025 VISITOR INTERCEPT STUDY Compari son SOURCE: DOWNS & ST. GERMAIN RESEARCH Top Activities During Visit* *Multiple responses permitted Q4Q3Q2Q1 59%69%69%71%Dining Out 57%61%57%61%Relaxing 38%32%32%35%Museum 39%25%26%35%Natural Attractions 36%40%39%44%Shopping 2025 VISITOR INTERCEPT STUDY (Q4 RESU LTS) SOURCE: DOWNS & ST. GERMAIN RESEARCH Visitor Satisfaction 78% 12% 9% 1% <1% Very satisfied More than satisfied Satisfied Partly satisfied Not at all satisfied The vast majority of visitors reported being very satisfied (up 7% points from last quarter). This indicates positive experiences while visiting the area. 55 56 February 17, 2026 29 City Council Meeting February 17, 2026 P3 – Recognize Pillar of the Community Award Recipients 57 58 February 17, 2026 30 Pillar of the Community Doug Hassett • La Quinta resident for 33 years • Construction and Appeals Board, 2014–2015 • Coachella Valley Mosquito and Vector Control Board, 2015–2021 • Planning Commission, 2021–Present • Volunteer performer: City of La Quinta Veterans Recognition Ceremony, 9/11 Vigil, Hunter Lopez Vigil, and City Picnic Pillar of the Community Phil La Greca • La Quinta resident for 20 years • Arts and Community Services Commission, 2019–2023 • Volunteer, La Quinta Art Celebration, 2020–2025 • Certified Tourism Ambassador (Visit Greater Palm Springs) • Volunteer, Coachella Valley Horse Rescue 59 60 February 17, 2026 31 City Council Meeting February 17, 2026 P4 – Recognize Distinguished Citizen Award Recipients 61 62 February 17, 2026 32 Distinguished Citizen Lorna Curran • Friends of the La Quinta Library • Dedicated several hours to the La Quinta Library by assisting with the Friends of the Library bookstore, book donations, programs, and special events such as Dia De Los Ninos and Book or Treat. Distinguished Citizen Judy Hoffman • Coachella Valley Foster Kids • Read with Me Program (Oasis Elementary School) • Child Protective Services • La Quinta Public Safety Department and Community Services (Wellness Center). 63 64 February 17, 2026 33 Distinguished Citizen Priscilla Paltin • La Quinta Housing Commission since 2023 • Dedicated Registered Nurse for over two decades, and a nursing instructor at College of the Desert since 2019. • Ms. Paltin brings real-world experience and a collaborative spirit to explore housing needs and find practical solutions for La Quinta. 65 66 February 17, 2026 34 City Council Meeting February 17, 2026 B1 – Introduce Ordinance Amending Sections of the La Quinta Municipal Code Related to Code and Speed Limits Regulations 67 68 February 17, 2026 35 City Council Meeting February 17, 2026 B2 – Receive and File Annual Comprehensive Financial Report for Year Ended June 30, 2025 Conducted virtually by LSL, LLP from June 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 69 70 February 17, 2026 36 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 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 71 72 February 17, 2026 37 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 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 73 74 February 17, 2026 38 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) Major Infrastructure Investments Dune Palms Bridge Improvements $9,972,000 Fred Waring Drive Pavement Rehabilitation $1,529,000Fritz Burns Park Improvements $1,066,000 Dune Palms Road Pavement Rehabilitation $914,000Village Art Plaza Promenade & Cultural Campus $656,000 Fred Waring Drive Dune Palms Bridge Fritz Burns Park 75 76 February 17, 2026 39 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 LSL, LLP Auditor Comments 77 78 February 17, 2026 40 Presentation of the Annual Financial Audit for the Fiscal Year Ended June 30, 2025 February 17, 2026 ls l c p a s . c o m 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 79 80 February 17, 2026 41 ls l c p a s . c o m 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 ls l c p a s . c o m 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 81 82 February 17, 2026 42 ls l c p a s . c o m Questions? 83 84 February 17, 2026 43 City Council Meeting February 17, 2026 S1 – Discuss Striping Revisions on Highway 111 at Washington Street •Highway 111 Rehabilitation completed •Corridor-wide striping updated •Residents expressed concerns near Washington Street •Staff evaluated alternatives Overview 85 86 February 17, 2026 44 •Key Elements: –Two eastbound through lanes –Buffered bike lane –Right-turn pocket at Plaza La Quinta driveway –Dual right-turn and dual left-turn pockets at Washington StreetStriped gore at driveway •Concerns Identified: –Drivers entering right-turn pocket early –Confusion between driveway opening and intersection turn lane –Vehicles driving through striped gore area Current Configuration •Designed to match Indian Wells transition at City limit •Bike lane added per Highway 111 Corridor Plan •Buffered bike lane placed left of right-turn pockets per CAMUTCD •Intended to improve multimodal safety Why the Configuration Changed 87 88 February 17, 2026 45 Current Configuration •Option 1 – Cycle-track (Staff Recommended) •Option 2 – Re-stripe to Original Configuration •Option 3 – Maintain Existing Striping Options Considered 89 90 February 17, 2026 46 •Raised curb separates bikes and vehicles •Removes bike lane conflict at turn pockets •Clarifies driver lane alignment •Maintains two through lanes •Consistent with Corridor Plan Option 1 – Cycle-track (Staff Recommended) Option 1 – Cycle-track 91 92 February 17, 2026 47 Option 1 – Cycle-track Ramp •Cyclists transition to sidewalk at Washington •Eliminates left-of-turn- pocket bike movement •Reduces vehicle–bicycle conflict •Construction/Delays •Restores three through lanes and driver familiarity •Removes bike lane •Deviates from Corridor Plan •Short construction period Option 2 – Re-stripe to Original 93 94 February 17, 2026 48 Option 2 – Re-stripe to Original •No construction/delays •Maintains corridor-wide consistency •Driver confusion may continue •Gore area misuse observed Option 3 – Maintain Existing 95 96 February 17, 2026 49 Proceed with evaluation and cost development of: Option 1 – Cycle-track •Improves clarity •Reduces conflicts •Maintains multimodal intent •Only two through lanes Staff Recommendation 97 98 February 17, 2026 50 99