POWER POINTS
CITY COUNCIL
MEETING
JUNE 17, 2025
June 17, 2025
1 Joint Meeting of the City Council
and Housing Authority
June 17, 2025
Joint Meeting of the City Council
and Housing Authority
June 17, 2025
PUBLIC COMMENT – MATTERS
NOT ON THE AGENDA
6/18/2025
1 2
June 17, 2025
2 Joint Meeting of the City Council
and Housing Authority
June 17, 2025
CLOSED SESSION IN PROGRESS
3 4
June 17, 2025
3 Joint Meeting of the City Council
and Housing Authority
June 17, 2025
PUBLIC COMMENT – MATTERS
NOT ON THE AGENDA
6/18/2025
Joint Meeting of the City Council
and Housing Authority
June 17, 2025
P1 – SilverRock Development Project
Status Update
5 6
June 17, 2025
4 Joint Meeting of the City Council
and Housing Authority
June 17, 2025
P2 – Recognition for Outgoing Financial Advisory
Commissioner Mr. George Batavick
Joint Meeting of the City Council
and Housing Authority
June 17, 2025
P3 – Introduction of New City Staff Members
7 8
June 17, 2025
5 Joint Meeting of City Council and
Housing Authority June 17, 2025
B1 – Interview and Appoint Residents to Serve on
Various City Commissions
9 10
June 17, 2025
6 Housing Authority Special Meeting
June 17, 2025
B2 – Adopt Fiscal Year 2025/26 Budget
11 12
June 17, 2025
7 Budget Summary
• Approved by Housing
Commission
• Ongoing operations are
structurally balanced
• Focus on improvements and
design of affordable housing
• Continuous monitoring as
economic situation fluctuates
Fund Balance Summary
* General Fund and RDA Low-Mod Housing Fund estimates are for unappropriated reserves and included annual Successor Agency loan repayments as approved with the last and final recognized obligation payment schedule. The repayment for FY 2025/26 is $715,187. 13 14
June 17, 2025
8 City Council Meeting
June 17, 2025
B3 – SilverRock Resort 2025/26 Annual Plan
and Golf Course Management
15 16
June 17, 2025
9 Fiscal Impact
• Operating Revenue $5,161,510
• Operating Expenses $5,657,771
• Net Loss ($ 496,261)
• SilverRock Property Management /Oversight Expenses
– General Fund Advance $600,000
– City Management/Oversight -$305,000
– Resident Card Revenue $150,000
– Golf Course Net Revenue -$496,261
– Final Surplus/(Deficit) ($ 51,261)
General Fund to Underwrite Up To ($600,000)
Annual Plan Assumptions
• Impact of Site Construction
– 41,445 Rounds = $104.43 average Green Fee and $113.89 per round • No increase to the minimum wage is projected
• Continue 2% into Capital Reserves or approximately $87,000 – Current Capital Reserve Balance of $740,000
• Management Fee increased 5% to $144,084 per Amendment 6 • Advertising Budget of $113,787
17 18
June 17, 2025
10 Discussion
and
Questions
19 20
June 17, 2025
11 City Council Meeting
June 17, 2025
B4 – Approve Contract Services Agreement with
AK Johnston LLC.
City Events
• City staff organizes free
community events throughout
the year that are meaningful, fun,
and family friendly.
• Events provide opportunities to
engage with residents and
establish community pride.
• Each year staff introduces new
attractions/activities to keep
events engaging and assess
each event for opportunities to
improve.
21 22
June 17, 2025
12 A Calendar Full of Community Connections
Easter Egg Hunt
Hunter Lopez Saber Vigil
9/11 Candlelight Vigil
Veterans Recognition Ceremony
Tree Lighting Ceremony
Birthday Celebration
Concerts in the Park (2)
Mission LQ Rocket Launch
Soaring Over LQ Kite Event
*New Fall Event
Concerts in the Park (2)
Concerts in the Park (2)
IRONMAN
City Events
23 24
June 17, 2025
13 AV Services – City Events
• Audio, visual, and lighting are critical for successful events.
• Professional AV is essential for quality performances and audience enjoyment.
• High-quality AV ensures every speech, song, and
meaningful moment is seen and heard clearly by all
attendees.
• Enhanced AV creates a welcoming, immersive
atmosphere, elevating the entire guest experience.
AV Services – City Events
• City contracts AV services for community events.
• On January 24, 2025, staff published an RFP
seeking vendors to provide AV services for signature
events throughout the year.
• Four responses were submitted, and all four
candidates were interviewed.
• Staff is recommending AK Johnston LLC.
25 26
June 17, 2025
14 AK Johnston
• Founded in 2008, AKJ is an award-winning agency offering a limitless range of design, production, and AV services. • Employ in-house audio engineers, technicians, and staff. • Experienced in large-scale and small-scale events and in addition to AV can execute staging, event design/strategy, permitting, content capture, décor, furnishings, and talent booking. • AKJ understands the unique needs of our events and is dedicated to supporting the City’s vision.
• Clients include YouTube, Vans, Apple TV, ESPN, Bank of America, Spotify, and Puma.
• Best equipped vendor to help us elevate City events.
AK Johnston
27 28
June 17, 2025
15 AK Johnston
AK Johnston
• Agreement includes:
– AV services
– Professional photo and video for select events
– Post-production editing
– Social media content
29 30
June 17, 2025
16 AV Services – Fiscal Impact
Term Estimated Cost
FY 2025/26 $300,000
FY 2026/27 $300,000
FY 2027/28 $315,750
Contingency FYs 2025/26 to $44,250
2027/28 (calculated at 5%)
Grand Total $960,000
AV Services – ROI
• Value of quality AV Services
– Elevated experiences.
– Adequate staffing levels.
– Better production quality attracts larger audiences
resulting in greater economic impact.
– Supports La Quinta’s reputation for excellence and
innovation.
– Fewer technical issues.
– Ensures every event is a success - memorable,
meaningful, and special for all.
31 32
June 17, 2025
17 Community Events
• Wireless handheld microphone package: $500
• Audio Engineer: $900
• Theatrical lighting package: $3,500
• Spending time with family at an unforgettable community celebration: Priceless
33 34
June 17, 2025
18 City Council Meeting
June 17, 2025
B5 – 2023/24 Annual Comprehensive Financial
Report (ACFR)
Conducted virtually by LSL, LLP from November 2024– June 2025 Reviewed nearly 1,000 documents & conducted interviews Issued a clean audit opinion – most favorable conclusion ACFR meets the GFOA’s Certificate of Achievement Program’s requirements and has been submitted for another certification Auditor comments regarding the audit shall be provided tonight Audit Summary
35 36
June 17, 2025
19 ACFR Content
Major
Events
• Transmittal letter
• Management Discussion and Analysis (MD&A)
Financial
Statements
• Balance sheets, statement of net position & cash flows • Budgetary comparison schedules
Summaries
& Charts
• 18 Notes
• Statistical section, 10-year comparison
Statement of Net Position
Category Amount
Capital Assets 592,061,273
Restricted 70,215,219
Unrestricted 242,727,583
TOTAL $905,004,075
Indicators of a City’s fiscal health include:
Balanced General Fund budget
Strong General Fund reserve fund
Making required pension contributions on time
Public service levels meet or exceed standards of the community 37 38
June 17, 2025
20 Governmental Fund Balances
Category General Fund All Other Funds Total Funds
Non-Spendable $ 22,698,006 $ 500 $ 22,698,506
Restricted 5,666,575 64,214,488 69,881,063
Committed 45,900,000 - 45,900,000
Assigned 70,304,510 - 70,304,510
Unassigned 65,216,616 (4,098,801) 61,117,815
Total $ 209,785,707 $ 60,116,187 $ 269,901,894
Prepaid Costs $ 170,577
Land held for resale 5,403,652
RDA Loan 17,123,777
Pension Trust $ 5,666,575
Housing Funds 24,755,830
Restricted Funds 39,458,658
Governmental Fund Balances
Category General Fund All Other Funds Total Funds
Non-Spendable $ 22,698,006 $ 500 $ 22,698,506
Restricted 5,666,575 64,214,488 69,881,063
Committed 45,900,000 - 45,900,000
Assigned 70,304,510 - 70,304,510
Unassigned 65,216,616 (4,098,801) 61,117,815
Total $ 209,785,707 $ 60,116,187 $ 269,901,894
Natural Disaster $ 15,000,000
Economic Disaster 13,000,000
Cash Flow Reserve 5,000,000
Capital Replacement 12,000,000
Operational Carryovers 900,000
Fire Services $ 15,652,616
Sales Tax (Measure G) 32,985,374
Capital Projects 21,666,520
39 40
June 17, 2025
21 Long-Term Debt
Debt Type 2023 2024
Leases $ 53,111 $91,795
Financed Purchases 551 - Compensated Absences 1,154,090 1,185,597 Subscription IT Liabilities 495,674 282,309
Total $1,703,426 $1,559,701
Irrevocable Section 115 Pension Trust $ 6,540,000
19/20 Contribution & Interest Earnings 3,709,738
20/21 Interest Earnings (Gain) 1,132,184
21/22 Interest Earnings (Loss) (1,244,034)
22/23 Payment & Interest Earnings (4,820,401)
23/24 Interest Earnings (Gain) 349,088
Total Trust Balance $5,666,575
Major Infrastructure
Investments
Dune Palms Bridge Improvements
$11,475,000
Avenue 50 Pavement Rehabilitation
$2,605,000
Fred Waring Drive Pavement Rehabilitation
$2,444,000
Citywide Pavement Management Plan
$1,830,000
Citywide Landscape Renovation
Improvements
$1,290,000
41 42
June 17, 2025
22 Fiscal Sustainability
Adopted a balanced 2024/25 budget
Continue to address long-term liabilities
Mixture of housing and commercial
developments are under construction
Long-term vision and planning are a priority
LSL, LLP
Auditor Comments
43 44
June 17, 2025
23 2024 Financial Audit
Presented to:
City of La Quinta City Council
June 17, 2025
Auditor Information
Calvin Kunkel, CPA
Manager, Assurance & Advisory
LSL, LLP
[email protected]
Experience: • 10 years auditing public sector clients in Southern California and the Chicagoland region
• Currently work with 2 cities in the Coachella Valley
45 46
June 17, 2025
24 Scope of Engagement • LSL has been engaged by the City to perform the following procedures: • Financial statement audit for the year ended June 30, 2024, in accordance with generally accepted auditing standards and Government Auditing Standards
• Single audit over the federal award programs for the year ended June 30, 2024, in accordance with the federal Uniform Guidance. • This is the 1st year of LSL’s contract with the City. • Interim Fieldwork • Aug. 12 – Aug. 23, 2024
• Examined internal controls
• Provided feedback to
management • Performed our audit risk
assessment • Planned year-end audit
procedures to respond to risk
• Year-End Fieldwork
• Nov. 25 – Feb. 21, 2025
• Detailed testing of account
balances and transactions
• Compliance testing with laws,
regulations, grant agreements,
contracts
• Single Audit testing
• Other procedures necessary to
obtain sufficient, appropriate
audit evidence
Scope of Engagement
47 48
June 17, 2025
25 Results of Audit • We issued an unmodified auditor’s opinion on the financial statements. • Financial statements are accurate and reliable as of June 30, 2024. • We issued the Report on Internal Control and Compliance • One significant deficiency in internal control noted. • No material weaknesses in internal control noted. • One material noncompliance with laws, regulations, grants, etc. noted (related to the significant deficiency, not a separate finding).
Finding Summary
• Criteria: Because the City expended more than $750,000 in federal awards, the City was required to complete the financial audit and the Single Audit by March 31st. • Condition: The City’s audits were finalized, and reports were issued on May 15, 2025. • Cause: The prior year’s audit had a delayed completion, which prevented the City from scheduling the 2024 audit early enough to meet the March 31 deadline. • Corrective Action: Management is taking corrective actions to remediate the issue and implement process improvements to enhance timeliness of financial reporting.
Management has scheduled the 2025 audits for September 2025, which should provide more than ample time to meet the deadline for this year. We do not expect this finding to be repeated in 2025.
49 50
June 17, 2025
26 Other Results of Audit • We issued an unmodified auditor’s opinion on the City’s compliance with the requirements of major federal award programs. • We identified no going concern doubts as of June 30, 2024. • We identified no fraud, waste, or abuse during the fiscal year ended June 30, 2024.
Other Results of Audit • We had no disagreements with management about application of accounting principles. • We had no difficulties conducting our audits. • We determined that all estimates used by management in preparing the financial statements were reasonable.
51 52
June 17, 2025
27 Questions
www.lslcpas.com
[email protected]
CALIFORNIA: Irvine | Sacramento
TEXAS: The Woodlands
53 54
June 17, 2025
28 City Council Meeting
June 17, 2025
B6 –Fiscal Year 2024/25 Budget Update Report
55 56
June 17, 2025
29 Report Summary
Fund # Fund Name Revenue Expenses
101 General Fund 5,810,000 $ 700,000 $
105 Disaster Recovery 270,000 201 Gas Tax 60,000 202 Library & Museum 225,000 215 Lighting & Landscaping 32,000
223 Measure A 70,000
241 Housing Authority 130,000 244 Housing Grants 68,000 247 Economic Development 60,000
249 Low/Mod Bond 85,000 100,000 250-252 Developer Impact Fee (multiple) (580,000) 401 Capital Improvements Programs 700,000 700,000 761 CERBT OPEB Trust 100,000 762 PARS Pension Trust 135,000 501 Facility & Fleet Replacement 120,000
502 Information Technology 170,000
TOTAL ADJUSTMENTS 7,455,000 $ 1,500,000 $
General Fund
Revenue & Expenditure Adjustments
Description Revenues Expenses
Tax Revenues 2,555,000 $ - $
Use of Money & Property 2,900,000 - Charges for Services 190,000 - Licenses & Permits 165,000 - Centralized Services - 700,000 TOTAL ADJUSTMENTS FOR GF 5,810,000 $ 700,000 $ 57 58
June 17, 2025
30 Other Fund Adjustments
Fund Name Revenues Expenses
Disaster Recovery 270,000 $ - $
Gas Tax 60,000 - Library & Museum 225,000 - Lighting and Landscaping 32,000 - Measure A 70,000 Housing Authority 130,000 Housing Grants 68,000 Economic Development 60,000
Low/Mod Bond Fund-Housing 85,000 100,000 Transportation DIF (400,000) Parks & Recreation DIF (105,000) Civic Center DIF (75,000) Capital Improvements Program 700,000 700,000 CERBT OPEB Trust 100,000 PARS Pension Trust 135,000
Facility & Fleet Replacement 120,000
Information Technology 170,000 - TOTAL ADJUSTMENTS 1,645,000 $ 800,000 $ Discussion
& Questions
59 60
June 17, 2025
31 City Council Meeting
June 17, 2025
B7 – Adopt Fiscal Year 2025/26 Budget
61 62
June 17, 2025
32 Budget Adoption Summary
General Fund
Revenues and
Expenses
Measure G
Sales Tax
General Fund
Reserves &
Carryovers
Summary of
all Funds
Appropriations
Limit
Personnel
Schedule
General Fund Summary
Revenues 92,242,254 $
Less Operating/CIP Expenses (92,822,188) Preliminary Budget Deficit (579,934) Use of Measure G Reserves 600,000 BUDGET SURPLUS 20,066 $
GENERAL FUND
FY 2025/26 PROPOSED BUDGET SUMMARY
63 64
June 17, 2025
33 Measure G Sales Tax
Projected Measure G Fund Balance at 06/30/2026 - $28.8 million Measure G Sales Tax Revenue $ 14,400,000
Police Services - Capital Improvements (15,000,000) Available for Appropriation $ (600,000)
MEASURE G SALES TAX SUMMARY
General Fund Reserves
• Capital Improvement Carryovers
estimated at $35.2 million
• Operating Carryovers $1.05
million
• RDA Loan repayment:
$3,575,934
- 80% General Fund:
$2,860,747
- 20% Housing Authority Fund:
$715,187
Fund Balance Summary Estimated as of
6/30/2025
Emergency Reserves
Natural Disaster 15,000,000 $
Economic Disaster 13,000,000 Cash Flow Reserve 5,000,000 Capital Replacement Reserve 12,000,000 Unassigned Reserve 55,000,000
Total Committed & Unassigned Funds 100,000,000 Sales Tax (Measure G) 29,400,000 Public Safety Fire Service Trust 17,000,000
Carryovers & CIP Projects (GF) 36,250,000
Pension Trust Fund 5,900,000 Other Post Employment Benefit Trust 2,100,000 Total Assigned Funds 90,650,000 Overall Total 190,650,000 $ 65 66
June 17, 2025
34 Summary of All Funds
• Total for all Funds:
– Revenues $148,130,533
– Expenses $151,957,045
Appropriations Limit & Personnel
• GANN Limit for 2025/26 - $188,994,165
– Total applicable revenues $85,746,154
– Under by $103,248,011
• Personnel Schedule
– 101 Full-Time
– 7.2 Part-Time
– 5 Elected Officials
67 68
June 17, 2025
35 DISCUSSION & QUESTIONS
69 70
June 17, 2025
36 City Council Meeting
June 17, 2025
PH1 – Lighting & Landscape Assessment District 89-1
FY 2025/26
Summary
• Annually, Council takes actions to levy annual
assessments Citywide for the L&L District
• Assessments fund Right-of-Way landscape,
lighting, median, and parkway maintenance
• Assessment rate remains $35.60
per Equivalent Benefit Unit (same since
1997)
71 72
June 17, 2025
37 Fiscal Impacts
• L&L District 89-1 for FY 2025/26: • Revenues = $1,002,096 • County Service Area 152 Offset = $150,000
• Combined Total = $1,152,096
• Estimated Expenditures = $3,808,000
• The short fall of $2,655,904 is funded by General
Fund
Questions?
73 74
June 17, 2025
38 City Council Meeting
June 17, 2025
PH2 – 2025/26 through 2029/30
Capital Improvement Program
75 76
June 17, 2025
39 Capital Improvement Program (CIP)
• 5-year plan
• Identifies scope, budget, schedule
• Streets, transportation, parks, sidewalks,
facilities, drainage, landscaping projects
CIP Timeline
• Financial Advisory Commission
– March 26, 2025
• City Council
– April 1, 2025
• Incorporated into Operating Budget
– July 1, 2025
77 78
June 17, 2025
40 2025/26 CIP Budget
79 80
June 17, 2025
41 2025-26 CIP PROJECTS
8 Transportation – Roadway Projects
3 Transportation – Pedestrian Projects
3 Parks and Facilities Projects
1 Landscape Improvement Project
1 Traffic Signal Improvement Project
1 Drainage Improvement Project
1 Developer Reimbursement
Transportation - Roadway
• Pavement Management Plan
• Highway 111 Corridor Area Plan Implementation
• Avenue 50 Widening Improvements (Jefferson Street to Madison Street)
• Miles Avenue Pavement Rehabilitation
• Citywide Striping Refresh
• 5-year PMP Update
• Washington Street Pavement Rehabilitation
• Cove Area Slurry Seal Improvements Phase 2
81 82
June 17, 2025
42 Transportation - Pedestrian
• ADA Accessible Ramps – Various Locations
• Sidewalks – Various Locations
• Citywide Miscellaneous ADA Improvements
Parks and Facilities
• Maintenance and Operations Yard
• Cultural Campus
• Bear Creek Trailhead Restrooms • Budget for Project No. 2024-09, Bear Creek Trailhead Restrooms, was initially tracking the Welcome Center Improvements Project. Staff recommend renaming the project to Bear Creek Trailhead Restrooms and utilizing Project No. 2024-09 allocated budget funding in the FY 2024/25 CIP.
83 84
June 17, 2025
43 Other 2025-26 CIP Projects
Landscape Improvements
Landscape and Lighting Median Island Improvements
Drainage Enhancements
Citywide Drainage Enhancements
Reimbursement Agreements
Developer Reimbursement for DIF Eligible Improvements Traffic Signal Improvements
Citywide Traffic Signal Maintenance Improvements
Highlights of Years 2-5 of CIP
• Parks, Landscape and Facilities
– Welcome Center Improvements
– North LQ Slurry Seal/Pavement Repair
– Phase III Safety Camera System
• Transportation – Pedestrian
– Highway 111 Corridor Area Plan
Implementation
85 86
June 17, 2025
44 Highlights of Years 2 - 5 of CIP
• Transportation – Roadway
– Highway 111/Simon Drive Dual Left Turn Lanes
– Corporate Centre Drive Gap Closure
– Avenue 47 Pavement Rehabilitation (Washington Street
to Adams Street)
– Francis Hack Lane Pavement Rehabilitation (Avenida
Bermudas to Cul-De-Sac)
– Citywide Arterial Slurry Seal Improvements
Highlights of Years 2-5 of CIP
• Traffic Signal Improvements
– Washington Street at Lake La Quinta Drive
(New Traffic Signal)
• Drainage Enhancements
– Citywide Drainage Enhancements
• Reimbursement Agreements
– Developer Reimbursement for DIF Eligible
Improvements
87 88
June 17, 2025
45 QUESTIONS?
89 90