WRITTEN
PUBLIC
COMMENT
CITY COUNCIL
MEETING
MAY 21, 2024
CITY OF LA QUINTA FINANCIAL ADVISORY COMMISSION
REPORT TO THE CITY COUNCIL
The Financial Advisory Commission (FAC) provides oversight of Measure G tax revenue. Measure G was passed by voters in November 2016 and provides a 1% transactions and use tax, effective April 1, 2017 and with no sunset date, which is fully allocated to the City and protected from State takeaways. Measure G revenues are to be used in accordance with the ballot measure for public safety, Capital Improvement Projects and other general expenditures supporting our businesses and residents.
For the fiscal years 2016/17 through 2022/23, Measure G revenues totaled $77 million. During these fiscal years Measure G uses have been for public safety services ($21 million) and Capital Improvement Projects ($27 million), with the balance of these revenues ($29 million) in reserves.
For fiscal year 2023/24, Measure G revenues are anticipated to be about $16 million, with uses of $5 million for public safety and $6.6million for Capital Improvement Projects, resulting in an estimated reserve balance of $33 million.
The FAC’s Measure G Sales Tax Compliance Report for Fiscal Year 2022/23 included a recommendation for the City to “explore the use of Measure G reserve funds to prioritize additional funding to accelerate Capital Improvement Projects, including for major street improvements.”
At the April 3, 2024 FAC Meeting, there was a discussion of projects to be included in Fiscal Years 2024/25 through 2028/29 Capital Improvement Program. The proposed projects are estimated to use only $19 million of Measure G funds. Assuming a starting point of July 1, 2024 of $33 million in Measure G reserves, and a conservative estimate of Measure G revenues over these next 5 fiscal years of $70 million ($14 million per fiscal year), spending only $19 million of Measure G funds for our Capital Improvement Program, and an estimated $30 million for public safety services ($6 million per fiscal year), would result in a projected Measure G reserve balance of $54 million at June 30, 2029. We strongly encourage the additional use of Measure G funds, while they are available and while economic conditions support it.
Accordingly, we recommend a greater use of Measure G funds for the 5-year Capital Improvement Program by allocating certain spending from the General Fund to Measure G funds. Specifically, we suggest the $2 million dollar per year Pavement Management Street Improvements ($10 million in total) be earmarked from Measure G funds/reserves. Also, we suggest accelerating the $3 million payment for the Phase III Public Safety Camera System expenditure in Fiscal Year 2025/26 to Fiscal Year 2024/25. We lastly suggest designating an additional use of Measure G funds for both the Maintenance and Operations Yard (which is currently projected to use $4 million of General Funds in addition to $4.4 million in Measure G funds), and the Fritz Burns Park Improvements (which is currently projected to use $2 million of General Funds in addition to $2.5 million of Measure G Funds).
CITY COUNCIL MEETING MAY 21, 2024 - WRITTEN COMMENTS BY FINANCIAL ADVISORY COMMISSION MEMBERS
MATTERS NOT ON THE AGENDA - MEASURE G REVENUE ALLOCATIONS RECOMMENDATIONS These suggestions utilize an additional $16 million of Measure G funds/reserves for our Capital Improvement Program over the next 5 fiscal years, reducing the projected Measure G Reserve balance at June 30, 2029 of $54 million to $38 million. This balance could be utilized for long-term capital projects discussed at the recent Community Workshop such as addressing the Imperial Irrigation District (IID) lease expiration and equipment needs and plan to underground utilities.
CITY OF LA QUINTA
CAPITAL IMPROVEMENT PROGRAM
REVENUE SUMMARY
Project # Project Description
General Fund
Operating
Measure G
Sales Tax
Community
/Cultural
Center DIF
SB 1 Road
Maint/Rehab
f
a
DIF
Transportation
Maintenance
and Facilities
DIF Measure A
Other
Revenue
Other
Revenue Source Total
2024/2025
2425ADA ADA Accessible Ramps - Various Locations 20,000 20,000 2425CPM Citywide Preventative Maintenance Plan Improvements 50,000 Equip Replacement Fund 50,000 2425PMP Pavement Management Plan Street Improvements 2,000,000 2,000,000 2425STI Sidewalks - Various Locations 55,000 55,000
2425TMI Citywide Traffic Signal Maintenance Improvements 235,000 235,000 2425DRA Citywide Drainage Enhancements 477,000 2,000,000 Earmark Funding 2025 2,477,000 201702 Developer Reimbursement for DIF Eligible Improvements 400,000 400,000 201804 Landscape and Lighting Median Island Improvements 500,000 500,000 201805 Maintenance and Operations Yard 500,000 400,000 100,000 1,000,000 201901 Cultural Campus 1,000,000 500,000 1,500,000
201905 Highway 111 Corridor Area Plan Implementation (for 2022-25) 3,050,000 950,000 4,000,000 Earmark Funding 2024 8,000,000 202101 Dune Palms Pavement Rehabilitation (Miles Avenue to Fred Waring Drive) 200,000 200,000 202102 Fritz Burns Park Improvements 2,000,000 2,500,000 500,000 Reprogram project 202304 5,000,000 202205 Avenue 50 Widening Improvements (Jefferson Street to Madison Street) 579,109 579,109 202401 Avenue 50 Sidewalk Improvements (Washington Street to Avenida Montero) 400,000 400,000 202402 Washington Street Sidewalk Improvements (Calle Tampico to Avenue 52) 478,000 Reprogram of 23/24 SB1 funds 478,000 202403 Cove Area Slurry Seal Improvements Phase 1 950,000 950,000 202404 City Hall Drainage Improvements 1,000,000 1,000,000 202405 Citywide Miscellaneous ADA Improvements 175,000 CDBG 175,000 202406 Citywide Miscellaneous Concrete Improvements 1,000,000 1,000,000 202407 Citywide Dog Park Improvements 500,000 1,000,000 Reprogram project 202310 1,500,000 202408 Village Parking Lot Utility Undergrounding 500,000 500,000 202409 Welcome Center Improvements 750,000 750,000
202410 Avenue 52 at Jefferson Street Roundabout Improvements 600,000 600,000 202411 SilverRock Way Slurry Seal Improvements 500,000 500,000 FY 2024/2025 SUBTOTAL: 8,052,000 8,200,000 500,000 1,428,000 1,579,109 100,000 2,285,000 7,725,000 29,869,109 2025/2026
2526ADA ADA Accessible Ramps - Various Locations 20,000 20,000 2526CPM Citywide Preventative Maintenance Plan Improvements 50,000 Equip Replacement Fund 50,000 2526PMP Pavement Management Plan Street Improvements 2,000,000 2,000,000 2526STI Sidewalks - Various Locations 55,000 55,000
2526TMI Citywide Traffic Signal Maintenance Improvements 235,000 235,000 2425DRA Citywide Drainage Enhancements 477,000 477,000
201702 Developer Reimbursement for DIF Eligible Improvements 400,000 400,000 201804 Landscape and Lighting Median Island Improvements 500,000 500,000 201805 Maintenance and Operations Yard 3,500,000 4,000,000 7,500,000 201905 Highway 111 Corridor Area Plan Implementation 1,000,000 1,000,000 202501 Citywide Striping Refresh 500,000 500,000
202502 Highway 111/Simon Drive Dual Left Turn Lanes 723,850 723,850 202503 Cove Area Slurry Seal Improvements Phase 2 950,000 950,000 202504 Avenue 47 Pavement Rehabilitation (Washington Street to Adams Street) 512,617 512,617 202505 Phase III Public Safety Camera System 3,000,000 3,000,000 202506 Washington Street at Lake La Quinta Drive (New Traffic Signal) 430,000 430,000 202507 Francis Hack Lane Pavement Rehabilitation (Avenida Bermudas to Cul-De-Sac) 580,000 580,000 202508 Corporate Centre Drive Gap Closure 1,000,000 1,000,000 202509 5-Year PMPUpdate 75,000 75,000
FY 2025/2026 SUBTOTAL: 6,552,000 8,000,000 0 950,000 1,830,000 2,626,467 50,000 20,008,467 2026/2027
2627ADA ADA Accessible Ramps - Various Locations 20,000 20,000 2627CPM Citywide Preventative Maintenance Plan Improvements 50,000 Equip Replacement Fund 50,000 2627PMP Pavement Management Plan Street Improvements 2,000,000 2,000,000 ATTACHMENT 1 - REVISED
2,000,000
900,000
4,500,000
3,000,000
3,552,000 15,700,000
202505 Phase III Public Safety Camera System
2,000,000
7,500,000
1,052,000 10,500,000
2,000,000
32,869,109
17,008,467
CITY OF LA QUINTA
CAPITAL IMPROVEMENT PROGRAM
REVENUE SUMMARY
Project # Project Description
General Fund
Operating
Measure G
Sales Tax
Community
/Cultural
Center DIF
SB 1 Road
Maint/Rehab
f
a
DIF
Transportation
Maintenance
and Facilities
DIF Measure A
Other
Revenue
Other
Revenue Source Total
2627STI Sidewalks - Various Locations 55,000 55,000
2627TMI Citywide Traffic Signal Maintenance Improvements 235,000 235,000 2627DRA Citywide Drainage Enhancements 477,000 477,000
201702 Developer Reimbursement for DIF Eligible Improvements 400,000 400,000 201804 Landscape and Lighting Median Island Improvements 500,000 500,000 201905 Highway 111 Corridor Area Plan Implementation 1,000,000 1,000,000 202601 North La Quinta Slurry Seal Improvements/Pavement Repair 1,500,000 1,500,000 202602 Citywide Arterial Slurry Seal Improvements 1,000,000 1,000,000 FY 2026/2027 SUBTOTAL: 3,052,000 1,000,000 0 1,000,000 400,000 1,735,000 50,000 7,237,000 2027/2028
2728ADA ADA Accessible Ramps - Various Locations 20,000 20,000 2728CPM Citywide Preventative Maintenance Plan Improvements 50,000 Equip Replacement Fund 50,000 2728PMP Pavement Management Plan Street Improvements 2,000,000 2,000,000 2728STI Sidewalks - Various Locations 55,000 55,000
2728TMI Citywide Traffic Signal Maintenance Improvements 235,000 235,000 2728DRA Citywide Drainage Enhancements 477,000 477,000
201702 Developer Reimbursement for DIF Eligible Improvements 400,000 400,000 201804 Landscape and Lighting Median Island Improvements 500,000 500,000 201905 Highway 111 Corridor Area Plan Implementation 1,000,000 1,000,000 202701 Washington Street Pavement Rehabilitation Project (Sagebrush Lane to Fred Waring Drive) 994,367 2,000,000 2,994,367 FY 2027/2028 SUBTOTAL: 3,052,000 1,000,000 0 994,367 400,000 2,235,000 50,000 7,731,367 2028/2029
2829ADA ADA Accessible Ramps - Various Locations 20,000 20,000 2829CPM Citywide Preventative Maintenance Plan Improvements 50,000 Equip Replacement Fund 50,000 2829PMP Pavement Management Plan Street Improvements 2,000,000 2,000,000 2829STI Sidewalks - Various Locations 55,000 55,000
2829TMI Citywide Traffic Signal Maintenance Improvements 235,000 235,000 2829DRA Citywide Drainage Enhancements 477,000 477,000
201702 Developer Reimbursement for DIF Eligible Improvements 400,000 400,000 201804 Landscape and Lighting Median Island Improvements 500,000 500,000 201905 Highway 111 Corridor Area Plan Implementation 1,000,000 1,000,000 202701 Washington Street Pavement Rehabilitation Project (Sagebrush Lane to Fred Waring Drive) 998,053 1,995,502 2,993,555 FY 2028/2029 SUBTOTAL: 3,052,000 1,000,000 0 998,053 400,000 2,230,502 50,000 7,730,555 TOTAL FISCAL YEARS 2024/25 THROUGH 2028/29: 23,760,000 19,200,000 500,000 5,370,420 4,609,109 100,000 11,111,969 7,925,000 72,576,498 2,000,000
2,000,000
1,052,000 3,000,000
1,052,000 3,000,000
1,052,000 3,000,000
7,760,000 35,200,000
FINANCIAL ADVISORY COMMISSION MEETING - MAY 8, 2024 - HANDOUT 2 BY COMMISSIONER BATAVICK - COMMISSIONER'S ITEM NO. 1