2017 06 20 FA Special MeetingFINANCING AUTHORITY 1 JUNE 20, 2017
SPECIAL MEETING
NOTICE AND CALL OF SPECIAL MEETING
OF THE LA QUINTA FINANCING AUTHORITY
TO THE MEMBERS OF THE FINANCING AUTHORITY OF THE CITY OF LA QUINTA AND
TO THE CITY CLERK/AUTHORITY SECRETARY:
NOTICE IS HEREBY GIVEN that a special meeting of the Financing Authority of
the City of La Quinta is hereby called to be held on June 20, 2017, commencing at 4:00
p.m. at La Quinta City Hall, 78-495 Calle Tampico, La Quinta, California.
CONSENT CALENDAR
1. APPROVE MINUTES OF JULY 5, 2016
BUSINESS SESSION
1. ADOPT A RESOLUTION TO APPROVE FISCAL YEAR 2017/18 FINANCING
AUTHORITY ANNUAL BUDGET [RESOLUTION NO. FA 2017-0001]
Dated: June 16, 2017 /s/ Linda Evans
Linda Evans, Chairperson
Attest:
______________________________
Susan Maysels
Financing Authority Secretary
DECLARATION OF POSTING
I, Susan Maysels, La Quinta Housing Authority Secretary, do hereby declare that the
foregoing notice for the Special La Quinta Financing Authority meeting of June 20,
2017, was posted on the outside entry to the Council Chamber at 78-495 Calle
Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway
111 on June 16, 2017
DATED: June 16, 2017
Susan Maysels, Authority Secretary
La Quinta Financing Authority
FINANCING AUTHORITY AGENDA 1 JUNE 20, 2017
SPECIAL MEETING
FINANCING AUTHORITY
AGENDA
CITY HALL COUNCIL CHAMBERS
78-495 Calle Tampico, La Quinta
SPECIAL MEETING
TUESDAY, JUNE 20, 2017 AT 4:00 P.M.
CALL TO ORDER
ROLL CALL: Authority Members: Fitzpatrick, Peña, Radi, Sanchez, Chairperson Evans
CLOSED SESSION – NONE
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the Financing Authority on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments to
three minutes. The Financing Authority 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 GC 54954.2(b).
CONFIRMATION OF AGENDA
ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – NONE
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
PAGE
1. APPROVE MINUTES OF JULY 5, 2016
3
BUSINESS SESSION
1. ADOPT A RESOLUTION TO APPROVE FISCAL YEAR 2017/18
FINANCING AUTHORITY ANNUAL BUDGET [RESOLUTION NO. FA 2017-
001]
5
Financing Authority agendas and
staff reports are now available on the
City’s web page: www.laquintaca.gov
FINANCING AUTHORITY AGENDA 2 JUNE 20, 2017
SPECIAL MEETING
STUDY SESSION – NONE
PUBLIC HEARINGS – NONE
DEPARTMENTAL REPORTS – NONE
CHAIR AND AUTHORITY MEMBERS' ITEMS
REPORTS AND INFORMATIONAL ITEMS – NONE
ADJOURNMENT
*****************************************
For information about the next special meeting of the Financing Authority, please
contact the City Clerk’s Office at 760-777-7000.
DECLARATION OF POSTING
I, Susan Maysels, Authority Secretary of the La Quinta Financing Authority, do hereby
declare that the foregoing agenda for the La Quinta Financing Authority meeting was
posted near the entrance to the Council Chambers at 78-495 Calle Tampico and on
the bulletin boards at the La Quinta Cove Post Office at 51-321 Avenida Bermudas and
at the Stater Brothers Supermarket 78-630 Highway 111, on June 16, 2017
DATED: June 16, 2017
SUSAN MAYSELS, Authority Secretary
La Quinta Financing Authority
Public Notices
The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for
the hearing impaired, please call the City Clerk’s Office at 777-7103, twenty-four (24) hours in
advance of the meeting and accommodations will be made.
If special electronic equipment is needed to make presentations to the Financing Authority,
arrangement should be made in advance by contacting the City Clerk's Office at 777-7103. A one
(1) week notice is required.
If background material is to be presented to the Financing Authority during a meeting, please be
advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for
distribution. It is requested that this take place prior to the beginning of the meeting.
Any writings or documents provided to a majority of the Financing Authority regarding any item on
this agenda will be made available for public inspection at the City Clerk counter at City Hall located
at 78495 Calle Tampico, La Quinta, California, 92253, during normal business hours.
FINANCING AUTHORITY MINUTES 1 JULY 5, 2016
SPECIAL MEETING
FINANCING AUTHORITY
MINUTES
TUESDAY, JULY 5, 2016
A special meeting of the La Quinta Financing Authority was called to order at 8 p.m. by
Chairperson Evans.
PRESENT: Authority Members Franklin, Osborne, Peña, Radi, Chair Evans
ABSENT: None
PUBLIC COMMENT – None
CONFIRMATION OF AGENDA – Confirmed
ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None
CONSENT CALENDAR
1. APPROVE MINUTES OF JUNE 21, 2016
2. ADOPT A RESOLUTION FOR ISSUANCE AND SALE OF SUBORDINATE TAX
ALLOCATION REFUNDING BONDS [Resolution No. FA 2016-002]
MOTION – A motion was made and seconded by Authority Members Franklin/Radi to
approve the Consent Calendar as recommended. Motion passed unanimously.
BUSINESS SESSION – None
STUDY SESSION – None
PUBLIC HEARINGS – None
DEPARTMENTAL REPORTS – None
CHAIR AND AGENCY MEMBERS' ITEMS – None
REPORTS AND INFORMATIONAL ITEMS – None
ADJOURNMENT
There being no further business, it was moved and seconded by Authority Members
Franklin/Radi to adjourn at 8:01 p.m. Motion passed unanimously.
Respectfully submitted,
SUSAN MAYSELS, Authority Secretary
La Quinta Financing Authority
CONSENT CALENDAR ITEM NO. 1
3
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City of La Quinta
FINANCING AUTHORITY MEETING: June 20, 2017
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION TO APPROVE LA QUINTA FINANCING AUTHORITY
FISCAL YEAR 2017/18 BUDGET
RECOMMENDATION
Adopt a Resolution approving the La Quinta Financing Authority 2017/18 Budget.
EXECUTIVE SUMMARY
•Annually, the budget is prepared and submitted for the Financing Authority’s
(Authority) review and approval.
•Projected revenues of $671,400 will fund projected expenditures of $671,400.
FISCAL IMPACT
2017/18, the revenues are projected to be $671,400 and the expenditures are
projected to be $671,400.
BACKGROUND/ANALYSIS
The annual budget was presented at the May 16, 2017 Council meeting for review.
There have been no changes to the proposed budget since that meeting. The
Authority’s revenues are derived from La Quinta’s General Fund. The expenditures
entail debt service payments on the 1996 Lease Revenue Refunding Bonds; bond
proceeds were used to fund City Hall construction. The principal balance outstanding
as of June 30, 2017 will be $1,265,000.
ALTERNATIVES
The Authority may further adjust the various appropriations.
Prepared by: Karla Campos, Finance Director
Approved by: Frank J. Spevacek, City Manager
BUSINESS SESSION ITEM NO. 1
5
6
RESOLUTION NO. FA 2017-
A RESOLUTION OF THE LA QUINTA FINANCING
AUTHORITY APPROVING A BUDGET FOR FISCAL YEAR
2017/2018
WHEREAS, each year the La Quinta Financing Authority adopts a Budget for
Revenues and Expenditures for the upcoming Fiscal Year; and
WHEREAS, the Financing Authority desires to make provisions for a level of
services commensurate with the needs of the City; and
WHEREAS, the Financing Authority has reviewed said budget and has had
several public meetings to receive public input; and
WHEREAS, the Financing Authority has, after due deliberation and
consideration, made such amendments in the proposed budget as it considers
desirable; and
NOW, THEREFORE, BE IT RESOLVED by the La Quinta Financing Authority to
adopt, as follows:
SECTION 1. The Fiscal Year 2017/2018 Budget (Exhibit A), which is on file with the La
Quinta Financing Authority Secretary, is hereby approved.
SECTION 2. Budget adjustment procedures are approved as follows:
A. Additional appropriations and the transfer of cash or unappropriated fund
balance from one fund to another shall be made only upon Financing Authority
approval.
B. Transfers of budgeted appropriations between divisions or capital projects shall
be made only upon Financing Authority approval.
C. Transfers of budgeted appropriations between accounts within a division or
capital project may be made with the approval of the Executive Director or his
designee.
D. Prior year budget continuing Appropriations and Encumbrances for unexpended
capital project appropriations remaining from uncompleted prior year capital
projects shall be made with Executive Director approval. These carry-over
appropriations are for prior year Financing Authority approved capital projects
and shall not exceed the approved project budget.
7
Resolution No. FA 2017-
La Quinta Financing Authority Annual Budget – Fiscal Year 2017/18
Adopted: June 20, 2017
Page 2 of 2
SECTION 3. The Executive Director shall render a monthly report on the status of City
operations as it relates to the approved budget and any amendments thereto.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta
Financing Authority held on this 20th day of June, 2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________________
LINDA EVANS, Chairperson
La Quinta Financing Authority, California
ATTEST:
__________________________________________
SUSAN MAYSELS, Authority Secretary
La Quinta Financing Authority, California
(SEAL)
APPROVED AS TO FORM:
__________________________________________
WILLIAM H. IHRKE, Authority Counsel
La Quinta Financing Authority, California
8
FINANCING AUTHORITY
EXHIBIT A
9
2015/16
Actual Revenue
2016/17
Original Budget
2016/17
Current Budget
2017/18
Proposed Budget
2017/18
Adopted Budget
310 - LQ FINANCE AUTHORITY DEBT SERVICE
1.69 0.00 0.00 0.00 0.00310-0000-41915 Non-Allocated Interest
673,074.60 678,100.00 678,100.00 671,400.00 671,400.00310-0000-42111 Rental Income
2,433.00 0.00 0.00 0.00 0.00310-0000-49500 Transfers In
310 - LQ FINANCE AUTHORITY DEBT SERVICE Totals:675,509.29 678,100.00 678,100.00 671,400.00 671,400.00
NON-GENERAL FUND REVENUE 675,509.29 678,100.00 678,100.00 671,400.00 671,400.00
1.69 0.00 0.00 0.00 0.00
673,074.60 678,100.00 678,100.00 671,400.00 671,400.00
2,433.00 0.00 0.00 0.00 0.00
675,509.29 678,100.00 678,100.00 671,400.00 671,400.00
675,509.29 678,100.00 678,100.00 671,400.00 671,400.00
CITY OF LA QUINTA FINANCING AUTHORITY REVENUE 2017/18 ADOPTED BUDGET
1 10
2015/16
Actual Expenses
2016/17
Original Budget
2016/17
Current Budget
2017/18
Proposed Budget
2017/18
Adopted Budget
310 - LQ FINANCE AUTHORITY DEBT SERVICE
9501 - 9501 - Financing Authority
60 - Contract Services
2,433.00 3,000.00 3,000.00 2,800.00 2,800.00310-9501-60102 Administration
0.00 2,000.00 2,000.00 500.00 500.00310-9501-60181 Contract Services Fees
60 - Contract Services Totals:2,433.00 5,000.00 5,000.00 3,300.00 3,300.00
68 - Capital Expenses
555,000.00 555,000.00 555,000.00 615,000.00 615,000.00310-9501-82130 1996 FA Bonds Principal
118,076.25 118,100.00 118,100.00 53,100.00 53,100.00310-9501-83370 1996 FA Series Bonds Interest
68 - Capital Expenses Totals:673,076.25 673,100.00 673,100.00 668,100.00 668,100.00
9501 - 9501 - Financing Authority Totals:675,509.25 678,100.00 678,100.00 671,400.00 671,400.00
310 - LQ FINANCE AUTHORITY DEBT SERVICE Totals:675,509.25 678,100.00 678,100.00 671,400.00 671,400.00
2,433.00 3,000.00 3,000.00 2,800.00 2,800.00
0.00 2,000.00 2,000.00 500.00 500.00
2,433.00 5,000.00 5,000.00 3,300.00 3,300.00
555,000.00 555,000.00 555,000.00 615,000.00 615,000.00
118,076.25 118,100.00 118,100.00 53,100.00 53,100.00
673,076.25 673,100.00 673,100.00 668,100.00 668,100.00
675,509.25 678,100.00 678,100.00 671,400.00 671,400.00
675,509.25 678,100.00 678,100.00 671,400.00 671,400.00
CITY OF LA QUINTA FINANCING AUTHORITY EXPENSES 2017/18 ADOPTED BUDGET
2 11
Department : 9501 - 9501 - Financing Authority
1996 FA Bonds Principal 615,000.00310-9501-82130
1996 City Hall Improvement Bonds will be paid off in October 2018. The
principal balance outstanding as of June 30, 2017 is $1,265,000.
3 12
GLOSSARY OF BUDGET TERMS, CONTINUED
The following is a list of commonly used financial terms:
ALLOCATE - To divide a lump-sum appropriation which is designated for expenditure by
specific organization units and/or for specific purposes, activities, or objects.
APPROPRIATION - An authorization made by the council which permits the City to incur
obligations and to make expenditures of resources.
ASSET - Anything having commercial or exchange value that is owned by a business,
institution or individual.
AUDIT - Conducted by an independent Certified Public Accounting (CPA) Firm, the primary
objective of an audit is to determine if the City's Financial Statements present the City's
financial position fairly and results of operations are in conformity with Generally
Accepted Accounting Principles (GAAP).
BALANCED BUDGET - A budget in which planned expenditures do not exceed projected
funds available.
BALANCE SHEET - A financial statement reporting the organization's assets, liabilities and
equity activities.
BUDGET - The document created by the staff and approved by the City Council which
establishes the broad policy guidance on the projection of revenues and the allocation
toward various types of expenditures.
BUDGET CALENDAR – This is a schedule of the dates which is followed in the preparation,
adoption, and administration of the budget.
CONTINGENCY - An appropriation of funds to cover unforeseen events that occur during
the fiscal year such as flood emergencies, Federal mandates, shortfalls in revenue, and
similar eventualities.
CONTINUING APPROPRIATION - Funds committed for a previous fiscal year expenditure
which were not spent in the year of appropriation, but are intended to be used in the
succeeding year.
CONTRACTUAL SERVICES - Services rendered to City activities by private firms, individuals
or other governmental agencies. Examples of these services include engineering, law
enforcement, and city attorney services.
4 13
GLOSSARY OF BUDGET TERMS, CONTINUED
DEPARTMENT - A major organizational unit of the City which has been assigned overall
management responsibility for an operation or a group of related operations within a
functional area.
DESIGNATED FUND BALANCE - A portion of unreserved fund balance designated by City
policy for specific future use.
ENCUMBRANCE - The legal commitment of appropriated funds to purchase an item or
service. To encumber funds means to set aside or commit funds for a future expenditure.
EXPENDITURE - The outflow of funds paid for goods or services obtained.
FEES FOR SERVICES - Charges paid to the City by users of a service to help support the
costs of providing that service.
FISCAL YEAR - The fiscal year is defined as the beginning and ending period for recording
financial transactions. The City has specified July 1 to June 30 as its fiscal year.
FIXED ASSETS – Fixed Assets are assets of a long-term nature such as land, buildings,
machinery, furniture, and other equipment. The City has defined such assets as those
with an expected life in excess of one year and an acquisition cost in excess of $5,000.
FUND - An accounting entity that records all financial transactions for specific activities or
government functions. The fund types used by the City are: General, Special Revenue,
Capital Project, Debt Service, Enterprise, and Internal Service Funds.
FUND BALANCE – Fund Balance is the excess of current assets over current liabilities, and
represents the cumulative effect of revenues and other financing sources over
expenditures and other financing uses.
GENERAL FUND - The General Fund is the primary operating fund of the City. All revenues
that are not allocated by law or contractual agreement to a specific fund are accounted
for in the General Fund. With the exception of subvention or grant revenues restricted for
specific uses, General Fund resources can be utilized for any legitimate governmental
purpose.
GOAL - A goal is a statement of broad, direction, purpose, or intent.
GRANT -Contributions of cash or other assets from another governmental agency to be
used or expended for a specified purpose, activity, or facility.
HOUSING AUTHORITY FUND - These funds are used to account for the housing activities
of the Housing Authority which is to promote and provide quality affordable housing.
5 14
GLOSSARY OF BUDGET TERMS, CONTINUED
INFRASTRUCTURE - Fund contributions of cash or other assets from development
oriented applicants used for the City's basic system of its physical plant, (i.e., streets,
water drainage, public buildings and parks).
INVESTMENT REVENUE – Investment Revenue that is received as interest from the
investment of funds not immediately required to meet cash disbursement obligations.
LIABILITY - A claim on the assets of an entity.
LINE-ITEM BUDGET - A budget that lists detailed expenditure categories (salary,
materials, telephone service, travel, etc.) separately, along with the amount budgeted for
each specified category. The City uses a program rather than line-item budget, although
detail line-item accounts are maintained and recorded for financial reporting and control
purposes.
MUNICIPAL - In its broadest sense, municipal is an adjective which denotes the state and
all subordinate units of government. In a more restricted sense, an adjective which
denotes a city or village as opposed to other local governments.
OPERATING BUDGET – This is the portion of the budget that pertains to daily operations
providing governmental services.
PERSONNEL SERVICES - Costs associated with providing the staff necessary to provide
the desired levels of services. Included in personnel services are both salary and benefit
costs.
POLICY - A direction that must be followed to advance toward a goal. The direction can
be a course of action or a guiding principal.
PROGRAM - A grouping of activities organized to accomplish basic goals and objectives.
PROGRAM BUDGET – This is a budget that focuses upon the goals and objectives of an
agency or jurisdiction.
RESERVE - An Account used to indicate that a portion of a fund's balance is legally
restricted for a specific purpose and is, therefore, not available for general appropriation.
REVENUE - Funds that the government receives as income. It includes such items as tax
payments, fees from specific services, receipts from other governments, fines, forfeitures,
grants, shared revenues, and interest income.
6 15
GLOSSARY OF BUDGET TERMS, CONTINUED
RISK MANAGEMENT – This is an organized attempt to protect an organization's assets
against accidental loss in the most cost-effective manner.
SUPPLIES AND SERVICES - A general category used for clarifying expenditures for various
supplies and services which are normally used within a fiscal year.
7 16