2018/19 Measure G Sales Tax Annual Report
MEASURE G BACKGROUND
Voters passed Ballot Measure G in November 2016. Measure G provides a
permanent one percent transaction and use tax, effective April 1, 2017,
which is fully allocated to the City of La Quinta.
The Financial Advisory Commission (FAC) provides oversight of these tax
revenues. This third Annual Measure G Sales Tax Oversight Report covers the
period from July 1, 2018 through June 30, 2019 (fiscal year 2018/19),
provides a summary of the Measure G budget for fiscal year ending June 30,
2020 and includes an inception to date summary.
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, youth/senior services, sports
recreation programs, preserving property values and quality of life. This report
concludes all Measure G tax revenues are being used in accordance with the
ballot measure.
2018/19 REVENUES
Total Measure G sales tax revenues for 2018/19 were $10,958,118. This
compares to the final budget estimate of $10,145,000 million.
Actual revenues exceeded the budget estimate due to:
- Higher levels of goods purchased online and in neighboring cities for
delivery within the City of La Quinta and
- Due in part to delayed tax revenue allocations from 2017/18 as a result
of a new State reporting and remittance system implementation in the
spring of 2018.
2018/19 EXPENDITURES
Originally the 2018/19 budget allocated $2,750,000 of Measure G for public
safety contract services; however, due to identified contract service savings,
a portion of the budget ($650,000) was allocated to the Public Safety Fund
during the 2018/19 Fourth Quarter Budget Report. An additional contribution
of $200,000 was also budgeted and made to the Public Safety Fund. The total
ANNUAL MEASURE G SALES TAX
OVERSIGHT REPORT FOR PERIOD
ENDED JUNE 30, 2019
available fund balance in the Public Safety Fund was $1,162,747 as of June
30, 2019. No expenses are budgeted from this restricted Fund in 2019/20.
The remaining 2018/19
budget allocation ($2.1
million) was used for police
contract services. This
represented 13% of total
contract service costs
($15,656,713) for the
fiscal year.
OVERALL SUMMARY
Below is an updated inception to date Measure G Revenue and Expenditure
Summary by fiscal year.
Revenues
2016/17 Actual 1,462,650$
2017/18 Actual 9,967,657
2018/19 Actual 10,958,118
TOTAL 22,388,425$
Expenditures Operational Capital Reserves Total by Year
2016/17 Eisenhower Dr. Retention Basin 750,000
Measure G Reserves 16/17 (X-Park Funding)* 712,650 - 1,462,650
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 17/18 (X-Park Funding)* 147,350
Measure G Reserves 17/18 4,309,970 9,967,657
2018/19 Public Safety Fund 850,000
Public Safety Services 2,100,000
Citywide Drainage Enhancements 1,166,500
North La Quinta Landscape Improvements 2,129,613
SilverRock Event Space 1,300,000
Measure G Reserves 18/19 3,412,005 10,958,118
TOTAL 3,250,000$ 11,416,450$ 7,721,975$ 22,388,425$
15% 51% 34%
MEASURE G REVENUES AND EXPENDITURES SUMMARY
* In 2018/19, the City allocated $860,000 from Measure G reserves for the XPark. $712,650 from 2016/17 and a portion of 2017/18
($147,350) reserves.
Total inception to date revenue
of $22.4 million is allocated as
follows by category. The
greatest portion (51% or $11.4
million) is allocated to Capital
Improvement Projects as
detailed on the previous page.
Public safety expenses (15% or
$3.2 million) for police contract
services and funds for future
public safety expenses. Use of
all funds are subject to City
Council appropriation.
BUDGET YEAR 2019/20 SUMMARY
Prior oversight reports and information on Measure G are located online at
https://www.laquintaca.gov/business/tax-measure. Questions regarding this
report or the use of Measure G funds may be directed to the Finance
Department by calling 760-777-7150 or by email at finance@laquintaca.gov.
Expenditures
City of La Quinta
CITY COUNCIL MEETING: November 19, 2019
STAFF REPORT
CONSENT CALENDAR ITEM NO. 10
AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2018/19 MEASURE G
SALES TAX COMPLIANCE REPORT
RECOMMENDATION
Receive and file fiscal year 2018/19 Measure G Sales Tax Compliance Report.
EXECUTIVE SUMMARY
• The 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.
• Revenues for 2018/19 were $10,958,118 and the reserve balance as of
June 30, 2019 was $7,721,975.
• The FAC reviewed and approved the report on November 13, 2019.
FISCAL IMPACT - None
BACKGROUND/ANALYSIS
In accordance with the Measure G ballot measure, the FAC provides oversight
of Measure G funds. This report was prepared by the Finance Department in
conjunction with two FAC members (Commissioners Batavick and Hunter).
The Annual Measure G Sales Tax Oversight Report for Period Ending June 30,
2019 (Attachment 1) covers the period from July 1, 2018 through June 30,
2019 (fiscal year 2018/19), provides a summary of the Measure G budget for
fiscal year ending June 30, 2020 and includes an inception to date summary.
ALTERNATIVE.
Council may request additional information.
Prepared by: Karla Romero, Finance Director
Approved by: Jon McMillen, City Manager
Attachment: 1. Annual Measure G Sales Tax Oversight Report for Period
Ending June 30, 2019
159