2021/22 Measure G Sales Tax Annual ReportANNUAL MEASURE G SALES TAX OVERSIGHT
REPORT FOR FISCAL YEAR ENDED JUNE 30, 2022
CALIFORNIA
OVERVIEW
The Financial Advisory Commission (FAC) provides oversight of Measure G tax
revenue. This Annual Measure G Sales Tax Oversight Report covers the fiscal
year beginning July 1, 2021 through June 30, 2022. Exhibit A includes a
detailed summary of all Measure G activity.
Measure G is a 1% transactions tax applied to sales of taxable goods and is
part of the overall 8.75% sales tax rate in the City. It applies to goods
transferred at the point of sale (businesses within La Quinta City limits), and
to goods purchased in other jurisdictions that are delivered to addresses within
the City.
Measure G revenue continues to help La Quinta thrive and is integral to the
future financial health of the City. These funds assist in realizing the Sacred
Values of La Quinta now and in the future: Health and Wellness, High Quality
Aesthetics, a Vibrant and Safe Community, a Visually Beautiful City and
Cultural Diversity, to continue being recognized as the "The Gem of the
Desert".
REPORT HIGHLIGHTS
• Since inception, over $29.8 million or 49% of Measure G funds have
been allocated to improving citywide infrastructure and public
recreational facilities.
• Public safety services are a priority of La Quinta and have been
supported with 26% of Measure G funds.
• Fiscally responsible budgeting, prudent long-term financial projections,
funds oversight, and financial transparency have strengthened the
City's reserves with Measure G funds since the implementation of
Measure G in April 2017.
FISCAL YEAR 2021/22 REVENUES
Total Measure G sales tax revenue for fiscal year 2021/22 was $15,615,802,
which was greater than initially anticipated when budgeted. After experiencing
effects of the COVID-19 pandemic, sales have bounced back significantly in
2021/22 and continue to show upward growth. Consumer spending has
remained strong, and despite high inflation with rising prices, spending
increased across most spending categories. These include general consumer
goods and restaurants/hotels, followed by building/construction and fuel.
Stronger than anticipated fiscal year-end Measure G sales tax revenues are a
result of this higher consumer spending and demonstrate La Quinta residents
and visitors continue to support our local economy.
REVENUES SINCE INCEPTION
The chart below summarizes Measure G revenue received from fiscal years
2016/17 thru 2021/22. Revenue has continued to increase since the pandemic
due to economic inflation and the previously noted higher consumer activity.
However, this is anticipated to result in slower growth into 2023 as interest
rates increase; resulting in downward pressure on sales of consumer goods,
automobiles, and building materials.
REVENUES SINCE INCEPTION
$60,909,142
1
1
1
u
16/17 17/18 18/19 19/20 20/21 21/22
Fiscal Year
=ISCAL YEAR 2021/22 USES
The fiscal year 2021/22 operational expenses and capital improvements were
prioritized, and the budget included a prudent reserve allocation for
operational flexibility. By allocating some Measure G revenue to reserves, the
City is able to maintain ongoing service levels, while providing for any
unforeseen decreases in revenues as were experienced in 2019/20.
USES SINCE INCEPTION
Annually, the City hosts a community workshop to either affirm or determine
the following year's budget priorities. Staff then evaluates funding options
such as grants, interagency cost sharing, or use of reserves. Public safety
services have been a community priority since before Measure G, and with the
support of this additional revenue, the City has been able to maintain the
public safety service levels the community desires.
The chart below summarizes the uses, since the inception, of Measure G funds.
The majority ($29.8 million, or 49%) of these funds are for projects to improve
citywide infrastructure and public recreational facilities.
USES SINCE INCEPTION
$60,909,142
Reserves
$ 15,355,043
Recreation
$ 5,073,850
Public Safety
$ 15,708,000
Infrastructure
Improvements
$ 24,772,249
• Public Safety use shows the City's continuing commitment to provide all
residents with a safe living environment.
• Infrastructure improvement projects have included numerous road
repairs, street striping projects, drainage improvements to avoid street
flooding, an investment in Highway 111 (a crucial commercial corridor
for our City where a majority of sales taxes are generated), an overhaul
of landscape medians north of Highway 111, design of an updated
corporate yard administrative and crew quarters, and the recent
advance funding for the Dune Palms bridge project.
• Recreation projects have included funding for the new X-Park adjacent
to the La Quinta high school, the SilverRock event site, design of a new
future Village Art Plaza Promenade connected to the La Quinta Museum,
and Fritz Burns Park improvements.
• Measure G reserves reflect fiscal responsibility and allow for operational
flexibility by ensuring cash is available for public safety services and
capital improvement projects when they are most efficient to complete.
The chart below summarizes citywide infrastructure improvements and
recreational projects, totaling $29,846,099 funded with Measure G revenues.
Infrastructure Improvements and Recreational Projects
City FacilitiesIMP $411,013
Highway 111
$2,250,000
Roads/Bridges
Drainage $3,352,103
Parks $5,073,850
Landscaping
$9,440,219
$9,318,914
$- $1 $2 $3 $4 $5 $6 $7 $8 $9 $10
Millions
MEASURE G BACKGROUND AND COMPLIANCE SUMMARY
Voters passed Ballot Measure G in November 2016. Measure G provides a
permanent one percent transactions and use tax, effective April 1, 2017,
which is fully allocated to the City of La Quinta and protected from State
takeaways.
All Measure G revenues shall be used in accordance with the ballot measure
for costs including police protection, projects such as parks, streets,
landscaping, and flood mitigation, programs attracting businesses,
youth/senior services, sports recreation programs, and preserving property
values and quality of life.
This report confirms all Measure G tax revenues are properly recorded and are
being used in accordance with the ballot measure.
City Council, management, and staff thank all residents for their continuing
support and investment in our community.
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.
EXHIBIT A
MEASURE G REVENUES AND USES SUMMARY
Fiscal Year (FY)
REVENUES
2016/17 Actual
2017/18 Actual
2018/19 Actual
2019/20 Actual
2020/21 Actual
2021/22 Actual
$ 1,462,650
9,967,657
10,958,118
10,310,526
12, 594, 389
15,615,802
TOTAL $ 60,909,142
MEASURE G USES
Fiscal
Year
Project Description
Operational Capital
Reserves
Total by Year
2016/17 Eisenhower Dr. Retention Basin
X-Park Funding
750,000
712,650
1,462,650
2017/18 Public Safety Fund
North La Quinta Landscape Improvements
Citywide Drainage Enhancements
La Quinta Village Road Diet Project
X-Park Funding
Alongi Building Improvements
SilverRock Event Site
SilverRock Event Site
Alongi Building at SilverRock Event Site
SilverRock Event Site
SilverRock Event Site Retention Basin
SilverRock Event Site Retention Basin
Measure G Reserves 2017/18
300,000
1,802,576
2,407,373
1,972,158
147,350
800,000
321,900
244,700
160,000
290,000
10,000
427,250
1,084,350
9,967,657
2018/19 Public Safety Fund 850,000
Public Safety Contract Services 2,100,000
Citywide Drainage Enhancements 194,730
North La Quinta Landscape Improvements 2,129,613
SilverRock Event Site 1,300,000
Measure G Reserves 2018/19
4,383,775
10,958,118
2019/20 Public Safety Contract Services 2,750,000
Corporate Yard Administration/Crew Quarters 411,013
Highway 111 Corridor Improvements 1,000,000
North La Quinta Landscape Improvements 3,703,369
Village Art Plaza Promenade 310,000
Measure G Reserves 2019/20
2,136,144
10,310,526
2020/21 Public Safety Contract Services
X-Park Landscaping
Highway 111 Corridor Improvements
Measure G Reserves 2020/21
4,545,000
275,000
250,000
7,524,389
12,594,389
2021/22 Public Safety Contract Services 5,163,000
Landscape Renovation Improvements 1,408,356
Highway 111 Corridor Improvements 1,000,000
Fritz Burns Park Improvements 350,000
Allocate Advance Bridge Funding 7,468,061
Measure G Reserves 2021/22
226,385
15,615,802
TOTAL $ 15,708,000
26%
29,846,099 $ 15,355,043
49% 25%
60,909,142
City of La Quints
CITY COUNCIL MEETING: December 20, 2022
STAFF REPORT
CONSENT CALENDAR ITEM NO. 9
AGENDA 1.1 L : RECEIVE AND FILE FISCAL YEAR 2021/22 MEASURE G
SALES TAX COMPLIANCE REPORT
RECOMMENDATION
Receive and file fiscal year 2021/22 Measure G Sales Tax Compliance Report.
EXECUTIVE SUMMARY
• Measure G revenue for fiscal year 2021/22 was $15,615,802 and the
Measure G reserve balance as of June 30, 2022 was $15,355,043.
• The Financial Advisory Commission (FAC) provides oversight of Measure
G revenue and prepares an annual Measure G Sales Tax Oversight Report
(Report) to ensure Measure G revenue is used in compliance with the
ballot initiative and the La Quinta Municipal Code (LQMC).
• At the FAC's special meeting on December 14, 2022, the full Commission
formally received and filed this Report.
FISCAL IMPACT - None
BACKGROUND/ANALYSIS
In accordance with LQMC Section 2.70.040, the FAC provides oversight of
Measure G funds, the 1% transactions and use tax instituted by voters in
November 2016. This Measure G Report was prepared by the Finance
Department with assistance from FAC members (Commissioners Batavick and
Luettjohann). The Report was presented, received, and filed at a special FAC
meeting on December 14, 2022; it will also be posted to the City's website.
The Annual Measure G Sales Tax Oversight Report for Fiscal Year 2021/22
(Attachment 1) covers the period from July 1, 2021 through June 30, 2022,
and provides a summary of the Measure G revenue and expenditures for the
fiscal year, as well as an inception -to -date summary.
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ALTERNATIVE"
Council may request additional information before filing this Report.
Prepared by: Claudia Martinez, Finance Director
Approved by: Jon McMillen, City Manager
Attachment: 1. Annual Measure G Sales Tax Oversight Report for Fiscal Year
Ended June 30, 2022
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