POWER POINTS
CITY COUNCIL
MEETING
MAY 16, 2023
May 16, 2023
1 City Council Regular Meeting
Housing Authority Special Meeting
May 16, 2023
5/17/2023
City Council Regular Meeting
Housing Authority Special Meeting
May 16, 2023
CLOSED SESSION IN PROGRESS
5/17/2023
1 2
May 16, 2023
2 Pledge of Allegiance
5/17/2023
5/17/2023
3 4
May 16, 2023
3 City Council Meeting
May 16, 2023
Presentations
5/17/2023
5 6
May 16, 2023
4 City Council Meeting
May 16, 2023
P2 – CV Link Regional Trail Project Update
7 8
May 16, 2023
5 HISTORY
HISTORY
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May 16, 2023
6 HISTORY
HISTORY
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May 16, 2023
7 2’4””a 14’ 12’ ”a”a 2’4” 6’ ”a
HISTORY
before
13 14
May 16, 2023
8 In design
realized
15 16
May 16, 2023
9 realized
• Congestion relief
• Im proves air quality
• Creates jobs
• Prom otes public health
goals
• Boosts tourism
• Safety
benefits
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May 16, 2023
10 $10
$20
$30
$40
$ 0
$50
$60
$70
$ In
Millions
$80
$90
$100 $100m vision
Approved route
19 20
May 16, 2023
11 completed
completed
21 22
May 16, 2023
12 completed
completed
23 24
May 16, 2023
13 Under construction
25 26
May 16, 2023
14 27
28 May 16, 2023
15 29
30 May 16, 2023
16 31
32 May 16, 2023
17 Under construction
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May 16, 2023
18 35
36 May 16, 2023
19 37
38 May 16, 2023
20 39
40 May 16, 2023
21 REMEMBER before?
ALMOST COMPLETED
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May 16, 2023
22 Building on Momentum
Building on Momentum
43 44
May 16, 2023
23 Building on Momentum
45 46
May 16, 2023
24 December 7–8, 2022
Adopts 2023 Active
Transportation
Program
$36.483 Million
for the Arts & M usic Line
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May 16, 2023
25 49
50 May 16, 2023
26 Classified
City Council Meeting
May 16, 2023
S1 – Discuss Fiscal Year 2023/24
Preliminary Proposed Budget
51 52
May 16, 2023
27 BUDGET
OVERVIEW
Focus on General Fund and
Internal Service Funds
Revenues & Expenses
Changes from FY 22/23
Discuss assumptions
and major variances
Measure G Summary
General Fund Revenues
Top 3 Revenue Sources:
Sales Tax revenue $28.4 million
Transient Occupancy Tax (TOT) $14.9 million
Property Tax revenue $11 million
General Fund
Revenues
2022/23
Original
2022/23
Current
2023/24
Proposed
Change
Current v.
Proposed % Change
Taxes 54,946,700 58,946,700 62,630,000 3,683,300 6%
License & Permits 2,823,200 3,401,200 2,521,300 (879,900) -26% Intergovernmental 7,853,000 7,878,000 9,178,000 1,300,000 17% Charges for Services 1,081,100 1,341,100 963,200 (377,900) -28% Fines & Assessment 462,000 522,000 465,500 (56,500) -11% Other/Misc. 1,155,100 6,455,100 2,720,100 (3,735,000) -58% Total Revenues 68,321,100 78,544,100 78,478,100 (66,000) 0% 53 54
May 16, 2023
28 General Fund Expenses
General Fund Expenditures 2022/23
Original
2022/23
Current
2023/24
Proposed
Change
Current v.
Proposed
City Council 351,400 351,400 304,500 (46,900)
City Manager Department 1,177,540 1,177,540 1,365,817 188,277 Marketing & Community Relations 1,632,128 1,747,128 1,720,532 (26,596) City Attorney 796,000 796,000 800,000 4,000
City Clerk Department 1,257,526 1,257,526 1,096,733 (160,793) Human Resources 495,698 589,398 557,015 (32,383)
Police 18,185,900 18,208,800 18,417,900 209,100
Fire 8,851,872 9,294,972 10,039,120 744,148
Community Resources Admin. 880,480 880,480 804,570 (75,910) Wellness Center Operations 682,102 682,102 829,735 147,633 Recreational Programs & Events 1,088,734 1,384,734 1,564,200 179,466 Code Compliance/Animal Control 1,663,996 1,667,996 1,779,300 111,304 Parks Maintenance 3,042,072 3,091,072 4,056,511 965,439 Public Buildings 1,390,052 1,430,052 1,565,694 135,642
Public Works Administration 794,862 794,862 779,773 (15,089) Public Works Dev. Services 512,960 512,960 529,394 16,434 Streets Department- Traffic 754,768 754,768 857,050 102,282 Engineering Services 1,020,756 1,246,156 984,700 (261,456) Design & Development Admin. 756,824 756,824 784,805 27,981 Planning 744,830 744,830 697,830 (47,000)
Building 1,291,362 1,441,362 1,339,516 (101,846)
The Hub 1,236,482 1,236,482 1,083,890 (152,592)
Finance 1,595,830 1,595,830 1,686,720 90,890
Centralized Services 14,447,100 62,116,186 18,794,500 (43,321,686) Total Expenditures 64,651,274 113,759,460 72,439,805 (41,319,655) General Fund Expenditure Assumptions
Salaries & Benefits
• Annual step
increases &
CalPERS rate
increase
• Pending labor
negotiations
Contract Services/Maintenance & Operations
• Contract rate
increases
• Rise in supplies &
materials
• One-time
expenditures in
FY 2022/23-
Consulting
services,
elections,
services brought
in-house
Utilities/Internal Service Charges
• Rising gas,
electric, and
water costs
• Increase in fuel &
maintenance and
IT needs
• Insurance
premium
increases
• Citywide park
upgrades
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May 16, 2023
29 General Fund Variances
Division Change from PY
Police $209,100 Estimated increase from Riverside County (2%) Fire $744,148 Estimated increase from Riverside County (9%) Recreational Programs & $179,466 Contract services for operations at Fritz Burns pool and X Park Events
Parks Maintenance $965,439 Citywide landscape maintenance & tree removal Engineering Services ($261,456) One‐time expenditures in FY 2022/23 One‐time unfunded pension liability payment in FY 2022/23, FY 2021/22 to FY 2022/23 carryovers including Dune Palms Bridge project
Centralized Services ($43,321,686)
Internal Service Funds
• Support the City’s internal operations
• Majority of revenues derived from the General Fund
based on employee & equipment allocations
Fund
Current
FY 22/23
Proposed
FY 23/24 Variance
Equipment Replacement 2,214,714 1,448,750 (765,964)
Information Technology 2,358,054 2,931,062 573,008
Park Equipment 1,618,000 2,242,200 624,200
Insurance Fund 984,100 1,118,000 133,900
7,740,012 7,174,868 565,144
INTERNAL SERVICE FUNDS SUMMARY
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May 16, 2023
30 General Fund Summary
Measure G Sales Tax Revenue 15,700,000 $
Police Services (5,100,000)
Capital Improvements (6,600,000)
Available for Appropriation 4,000,000 $
MEASURE G SALES TAX SUMMARY
Revenues 78,478,100 $
Less Operating/CIP Expenses (72,439,805)
Preliminary Budget Surplus 6,038,295
Less Measure G Reserves (4,000,000)
BUDGET SURPLUS 2,038,295 $
GENERAL FUND
FY 2023/24 PROPOSED BUDGET SUMMARY
FY 2023/24
Budget Schedule
• May 16 – City Council, Study Session #1
• June 6 – City Council, Study Session #2
• June 7 – Financial Advisory Commission
• June 14 – Housing Commission
• June 20 – City Council, Adoption
For the latest budget information visit:
www.laquintaca.gov/business/finance/budget
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May 16, 2023
31 Discussion &
Questions
Classified
61 62
May 16, 2023
32 City Council Meeting
May 16, 2023
S2 – STVR Program 2023 Quarter 1 Update
and Proposed Code Amendments
• Characteristics
• Compliance status
• Taxes, Fees, & STVR Program Costs
STVR Program
2023 Q-1 Overview & 2021-2022 Comparison
63 64
May 16, 2023
33 • Moratorium – Aug. 4, 2020 to Jun. 1, 2021 via
Executive Order No. 10 & succeeding amendments
• Permanent Ban – May 20, 2021 – LQMC Section
3.25.055
• No new permits have been issued outside of exempt
areas since August 4, 2020
• Existing permits can be renewed, but not transferred
Background
1,210 Active STVR Permits – March 2023
65 66
May 16, 2023
34 Active STVR Permits Decline Since Jan. 2021
2021 – declined by 201 permits or 19.38% (from 1,037 to 836 – Jan. to Dec.) 2022 – declined by 81 permits or 9.69% (from 836 to 755 – Jan. to Dec.) 2023 Q-1 – declined by 5 permits (from 755 to 750 – Jan. to Mar.) STVR Density – Permit Ban Areas
67 68
May 16, 2023
35 Exempt Areas
Compliance Overview Since Jan. 2021
STVR Program: Compliance:
1) Permitting & Licensing; 1) Managing complaints;
2) Tax collection; 2) Conducting investigations
3) Compliance 3) Enforcement
Code updates – Jan. 15, 2021 – enhanced regulations,
enforcement, and fines
69 70
May 16, 2023
36 STVR Complaints Citywide 2021-2022 & 2023 Q-1
Citywide complaints declined by 73% in 2022 in comparison to 2021 STVR Complaints Citywide 2023 Q-1
• Hosting platform glitch – removed designated STVR permit number field - Feb 2023 – 58 complaints (or 87%) of the total 67 to permitted properties - Mar 2023 – 28 complaints (or 80%) of the total 35 to permitted properties 71 72
May 16, 2023
37 Compliance Categories
• Disturbance – due to noise, generally caused by
large events or gatherings, children running/
screaming/laughing, popping balloons, construction,
slamming doors; excessive parking, bright lights,
trash, unmaintained yard, etc.
• Administrative – operating/advertising without
STVR permit or business license, failure to display
permit on listing, incorrect or missing occupancy limit advertised, failure to report TOT, etc.
STVR Complaints Citywide 2023 Q-1
• Hosting platform glitch – removed designated STVR permit number field - Feb 2023 – 58 complaints (or 87%) of the total 67 to permitted properties - Mar 2023 – 28 complaints (or 80%) of the total 35 to permitted properties • Disturbance complaints – 15; Administrative complaints – 152 (or 66 without glitch) 73 74
May 16, 2023
38 STVR Citations Citywide 2021-2022 & 2023 Q-1
• Citywide citations
declined by 70% in 2022
in comparison to 2021
• The vast majority of
citations are issued for
administrative matters
and do not cause
disturbances in the
community
STVR Citations Citywide 2022 & 2023 Q-1
• Almost 70% or 50 out
of the 72 total citations
in 2022 were issued to
unpermitted
properties
• All but 1 of the 37 total
citations in 2023 Q-1
were issued to
unpermitted
properties
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May 16, 2023
39 STVR Citations Citywide 2022 & 2023 Q-1
• No citations were issued
for disturbances in 2022
Q-4 & 2023 Q-1
• 75% or 54 out of the 72
total citations in 2022
were issued for
administrative matters
STVR Taxes, Fees, & Program Costs
• Permit/licensing fees and fine collections covered STVR program operational costs in 2021, 2022, & 2023 Q-1
77 78
May 16, 2023
40 STVR Taxes - 2020, 2021, 2022, & 2023 Q-1
Permit Ban vs. Exempt Areas
STVR Code Amendments
• February 21, 2023 – update on STVR program
characteristics, performance, and enforcement for 2022
calendar year and comparison to 2021
• Public comments in support and opposition of the STVR program regulations
• March 21, 2023 – discussed proposed STVR program
code amendments to Chapter 3.25 for consideration,
discussion, and direction
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May 16, 2023
41 A. Section 3.25.055 Non-issuance of new STVR
permits (ban); periodic review
• Executive Order 10 – Aug. 4, 2020 to May 19, 2021 –
moratorium
• Section 3.25.055 added to LQMC – May 20, 2021 –
permanent ban currently in effect
• Measure A (Nov. 2022) seeking permanent ban did not
include Homeshare STVR permits
STVR Program Code Amendments
A. Section 3.25.055 Non-issuance of new STVR
permits (ban); periodic review
• Add a provision requiring 4/5 majority vote of
the Council to adopt future code amendments
to this section
• Add a provision to exempt Homeshare STVR
permits in non-exempt areas from the ban
STVR Program Code Amendments
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May 16, 2023
42 B. Proposed Section 3.25.056 HOA Exemption – develop and add a process for qualifying residential projects governed by HOAs where STVRs are authorized under the CC&Rs:
• Voting membership of the HOA approves pursuant to CC&Rs or by 50%+1 to be exempted from the ban; vote must be
conducted within the previous 12 months
• HOA certifies that it has complied with any other voting requirements pursuant to the CC&Rs
• Application may be submitted once within 3-year period • Application shall be considered by Council at a public meeting STVR Program Code Amendments
C. Proposed Section 3.25.057 Large Lot Exemption – develop and add a process by which a residential dwelling in non-exempt areas would be able to apply for an exemption from the ban if specified criteria are met:
• Large lot size of 25,000 sq. ft.
• HOA authorization pursuant to CC&Rs
• Verification of bedrooms
• Adequate on-site parking
• Physical distance from adjacent residential properties, evaluate active STVR units within 500 ft.
• Application shall be considered by Council at a Public Hearing • Notification of properties within 500 feet
• Limit total number of exemptions allowed within the City to maximum of 20 • Limit total number of exemptions allowed within 1 year to maximum of 3 STVR Program Code Amendments
83 84
May 16, 2023
43 • 9.25 acre property
• 5 acres of orchards
• 5,553 sq. ft. – 7
bedrooms between
the main dwelling,
guest house, &
servants quarters
• Large pool & patio
area
• Outside gardens &
resting areas
• Horse stables
D. Code Language Clarifications & Alignment with Existing Processes • Additional definitions for “HOA,” “Large Lot,” “Management Company,” “Potentially Qualifying HOA,” “Qualified & Certified Large Lot,” & “Qualified & Certified HOA
• Transfers of properties to trusts or entities with the same beneficiaries or members
• Add the Estate at Griffin Lake Specific Plan which governs the Merv Griffin Estate property
• Add language to clarify that if a hosting platform provides a designated field to list the STVR permit number & number of approved bedrooms, this is in compliance with City requirements for STVR advertisements • Add language to establish fines for advertising without a STVR permit • Application shall be considered by Council at a Public Hearing • Miscellaneous minor modifications to align the code with existing processes STVR Program Code Amendments
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May 16, 2023
44 • Established relations with community members in support and opposition of the STVR program
• Bedrooms verifications process – 9 properties, of the 1,210 active STVR units, were granted a bedroom increase over the last 28 months (Jan. 1, 2021 – Apr. 30, 2023)
• Parking – 3 properties, of the 1,210 active STVR units, utilize on-street parking to meet the parking requirements for a STVR permit; all remaining properties utilize onsite parking, such as a garage, carport, or a driveway
Community Outreach, Bedrooms, & Parking
QUESTIONS
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May 16, 2023
45 Classified
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