2017/18 Measure G Sales Tax Annual Report
BACKGROUND
Voters passed Ballot Measure G in November 2016. Measure G provides a one percent transaction
and use tax, effective April 1, 2017, which is fully allocated to the City of La Quinta. These tax
revenues will be invested to maintain services and programs and for needed infrastructure
improvements.
The Financial Advisory Commission (FAC) provides oversight of these tax revenues. The second
Annual Measure G Sales Tax Oversight Report covers the period July 1, 2017 thru June 30, 2018
(fiscal year 2017/18) and provides estimates for fiscal year ending June 30, 2019.
This report concludes that all Measure G tax revenues are being used in accordance with the ballot
measure requirements.
REVENUES
Total Measure G sales tax revenues for 2017/18 were $9,967,657. This compares to the final
budget estimate of $9.6 million.
Actual revenues exceeded budget estimate due to:
- Higher levels goods purchased in neighboring cities for delivery within the City of La Quinta
and
- Conservative, yet adjusted, revenue projections due to the lack of history.
The Measure G revenue budget for 2018/19 is $8,455,000; however, a mid-year adjustment will
be presented for Council consideration to increase this budget by $890,000 for a total revenue of
$9,345,000. An additional adjustment may follow during the third quarter budgetary analysis. This
is the second year of Measure G revenue and a reputable trend does not exist, therefore, a
conservative and closely monitored approach is employed.
EXPENDITURES
Originally the 2017/18 budget allocated
$100,000 of Measure G for public safety
contract services; however, due to
budgetary savings, these funds
remained unallocated and are
recognized in reserves. A $300,000
contribution to a new restricted Public
Safety Fund was made and in 2018/19
and an additional $200,000 will be
added.
ANNUAL MEASURE G SALES TAX
OVERSIGHT REPORT FOR PERIOD
ENDED JUNE 30, 2018
$17,019,000
$2,750,000
2018/19 Police Contract Services funded
with Measure G Sales Taxes
Police Contract Costs Measure G Revenue
The 2018/19 operating budget allocates $2.7 million for police contract services. This represents
16% of total anticipated contract service costs.
Below is an updated Measure G Revenue and Expenditure Summary by fiscal year with prior
year actuals and estimates for 2018/19.
The total revenue of $20.7 million is allocated as follows by category. The greatest portion (51%
or $10.5 million) is allocated to Capital Improvement Projects as detailed above. Operational
expenses (16% or $3.2 million) have been
limited to police contract services. Use of
reserve funds are subject to City Council
appropriation.
All Measure G revenues shall be used in
accordance with the ballot measure for
costs including police protection, projects
such as parks, landscaping and flood
control, programs attracting businesses,
and youth/senior services, and sports
recreation programs.
Revenues
2016/17 Actual 1,462,650$
2017/18 Actual 9,967,657
2018/19 Estimated Budget (Adjusted)*9,345,000
TOTAL 20,775,307$
Expenditures Operational Capital Reserves
2016/17 Eisenhower Dr. Retention Basin 750,000
Measure G Reserves 2016/17 712,650
2017/18 Public Safety Fund 300,000
North La Quinta Landscape Improvements 1,802,576
Citywide Drainage Enhancements 2,407,373
La Quinta Village Road Diet Project 1,000,388
Measure G Reserves 2017/18 4,457,320
2018/19 Public Safety Fund 200,000
Public Safety Services 2,750,000
Citywide Drainage Enhancements 1,166,500
North La Quinta Landscape Improvements 2,129,613
SilverRock Event Space (Proposed)**1,300,000
Measure G Reserves 2018/19 (Adjusted)***1,798,887
TOTAL 3,250,000$ 10,556,450$ 6,968,857$
MEASURE G REVENUES AND EXPENDITURES SUMMARY
* Includes an anticipated 2018/19 mid-year budget adjustment to increase revenues.
** Proposed SilverRock Event Space allocation will be presented for Council consideration on 1/15/19.
*** Reserves are adjusted for the anticipated revenue increase and use of funds for SilverRock Event Space.
BUSINESS SESSION ITEM NO. 2
City of La Quinta
CITY COUNCIL MEETING: January 15, 2019
STAFF REPORT
AGENDA TITLE: APPROVE MEASURE G COMPLIANCE REPORT FOR FISCAL YEAR
2017/18
RECOMMENDATION
Approve the annual Measure G Compliance Report for the 2017/18 fiscal year.
EXECUTIVE SUMMARY
• Financial Advisory Commission (FAC) provides oversight of Measure G sales
tax funds.
• The FAC prepares an annual revenue and expenditure report to account for
funds and ensure adherence to the ballot measure priorities.
FISCAL IMPACT - None
BACKGROUND/ANALYSIS
Audited financial statements for fiscal year ending June 30, 2018 were presented
to Council on January 15, 2018. In accordance with the Measure G ballot
measure, the FAC provides oversight of Measure G funds. The attached Annual
Measure G Sales Tax Oversight Report for Period Ending June 30, 2018
(Attachment 1) provides an update of the revenue and expenses through June
30, 2018. This report was prepared by the Finance Department in conjunction
with two FAC members (Commissioners Rosen and Twohey). A brief update for
the 2018/19 fiscal year is also provided.
ALTERNATIVES
The Council may request additional information.
Prepared by: Karla Campos, Finance Director
Approved by: Frank J. Spevacek, City Manager
Attachment: 1. Annual Measure G Sales Tax Oversight Report for Period
Ended June 30, 2018
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