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Home My WebLink About00 - Special Joint Meeting - PowerPointMay 14, 2019 Special Joint Meeting Budget Emphasizes: • Providing High Quality Municipal Services that Residents Expect • Providing a Safe and Secure Neighborhood • Keeping Newport Beach Looking Great • Maintaining a Prosperous, Fiscally Sustainable, and Economically Viable City z A4 if �t i • Budget is balanced • Budget assumes strong property tax growth rate while most other revenue slowing • Proposed Expenditures remain relatively flat • Adhered to Council guidance regarding the use of FY 2017-18 budget surplus • Continued aggressive payment schedule of unfunded pension liability • Continued focus on enhancing the community's quality of life and safety • Continued funding of infrastructure master plans and neighborhood enhancement projects • General Plan Update Funded • Funded Airport Growth Control Efforts • Robust Internal and External Audit Programs • The collective components are budgeted conservatively • Emphasizes long-term fiscal sustainability 3 ■ Source and Use Projections Personnel Budget Development Departmental CIP Preparation Departmental Budget Preparation City Manager Review Finance Committee Review City Council Review Budget Adoption Budget Implementation Open Budget City of Newport Beach Newport Beach City Website f V Open Budget Welcome to the City of Newport Beach's (City) Open Budget portal. We developed this site to provide a guided view through complex financial information and it is part of our commitment to improving government transparency. We encourage you to explore our budget to view how public funds are allocated. There are charts, graphs and tables, which are highly interactive to:help you understand the City's budget. Read More www.newportbeachca.o_v/openbudget Q Search RELATED CONTENT Open & Transparent Budget Documents Government Interfund Transfers Fi i=ro. 4 The City's Open&Transparent Government The City's budget is presented in two Interfund tra nsfers represe nt the a mounts website is designed to make information volumes: The Budget Detail includes transferred from one fund to finance the accessible to the public in a central location revenue estimates and line -by-line services for the recipient fund and are not and serve as a launching pad for future proposed operations and maintenance considered to be part of the City's operating transparency efforts- expenditures, and the Capital Improvement budget- We've created a breakdown of the Program (CIP) describes the planned capital Fiscal Year 2429 proposed budget interfund projects and infrastructure improvements. transfers. M Navigating Open Budget Video tutorial about how to navigate through Open Budget. I FY 2017-18 REVISED EXPENDITURES FY 2018-19 REVISED EXPENDITURES FY 2019-20 PROPOSED EXPENDITURES $ VAR % VAR OPERATING BUDGET 294,576,388 298,959,576 303,752,688 4,793,112 1.6% CIP PROJECTS New Appropriations 41,069,538 52,325,792 44,491,100 (7,834,692) -15.0% Rebudget/Carry Forward 35,194,809 30,757,550 51,724,110 20,966,560 68.2% 76,264,347 83,083,342 96,215,210 13,131,868 15.8% TOTAL BUDGET $ 370,840,735 $ 382,042,918 $ 399,967,898 $ 17,924,980 4.7% I General Fund Internal Service Funds Enterprise Funds Other Funds Proposed Budget FY 2019-20 218,689,329 39,890,356 Internal 30,720,964 Service 14,452,039 Funds 13% Total $ 303,752,688 Other Funds 5% Enterprise g Fund 72% SOURCES UNRESTRICTED FUND BALANCE FY 2016-17 Surplus FY 2017-18 Surplus Use of FY 2017-18 Surplus FY 2018-19 Surplus REVENUES Less: Restricted Revenues Use of Restricted Revenues and Encumbrances Transfers -In TOTAL SOURCES USES Operating Expenditures Transfers Out Contingency Reserve Increase(Decrease) TOTAL USES UNAPPROPRIATED RESOURCES 9 FY 2018-19 FY 2019-20 Revised Proposed Budget Budget $ VAR % VAR $ 12,090,743 $ - $ (12,090,743) -100.0% - 113,020,333 13,020,333 NA 1,428,885 (1,428,885) (2,857,770) -200.0% - 2,462,692 2,462,692 NA 221,413,058 229,392,161 7,979,103 3.6% (775,735) (672,000) 103,735 -13.4% 1,878,744 20,000 (1,858,744) -98.9% 8,140,595 9,475,236 1,334,641 16.4% $ 244,176,290 $ 252,269,537 $ 8,093,247 3.3% $ 211,853,367 $ 218,689,329 $ 6,835,962 3.2% 26,337,885 31,680,252 5,342,367 20.3% 3,522,346 - (3,522,346) -100.0% $ 241,713,598 $ 250,369,581 $ 8,655,983 3.6% $ 2,462,692 -22.9% $ 1,899,956 $ (562,736) 9 * $1,428,885 of FY 2017-18 Surplus was used in FY 2018-19 SCE 20A Credits 10 Near Term Long -Term Improvements Obligations TOTAL Harbor & Beaches Master Plan $ 2,000,000 $ 2,000,000 Neighborhood Enhancement Projects $ 6,500,000 6,500,000 Facilities Financial Plan 1,520,333 1,520,333 Workers' Compensation 3,000,000 3,000,000 $ 6,500,000 $ 6,520,333 $ 13,020,333 49.9% 50.1% * $1,428,885 of FY 2017-18 Surplus was used in FY 2018-19 SCE 20A Credits 10 ■Property Taxes $113.6 19% ■ Sales Tax $35.7 5% Transient Occupancy Tax $24.5 11% Other Taxes $11.6 ■ All Other Sources $44.0 16% FY 2018-19 Revised Property Taxes 106,723,629 Sales Taxes 3619971648 Transient Occupancy Tax 2313961103 Other Taxes 11,285,764 Licenses and Permits 5,021,451 Intergovernmental 2,334,802 Charges for Services 20,150,738 Fines & Penalties 319421617 Use of Money & Property 1015661868 Other Revenues 993,438 Total General Fund $ 221,413,058 FY 2019-20 Proposed $ VAR % VAR 113,601,474 61877,845 6.4% 3516971090 (1,300,558) -3.5% 2414581131 110621028 4.5% 11,597,886 3121122 2.8% 4,918,412 (103,039) -2.1% 1,842,767 (492,035) -21.1% 21,506,631 1,355,893 6.7% 314751428 (467,189) -11.8% 11, 693,470 1,126, 602 10.7% 600,871 (392,567) -39.5% ,2 $ 229,392,160 $ 7,979,102 3.6% ■ Salaries & Benefits $155,5601228 ■ Maintenance & Operation $62,316,955 Capital Outlay $812,146 <1% 13 ■ Salaries & Benefits $155,560,228 Maintenance & Operation $62,316,955 Transfers $31,680,252 Capital Outlay $812,146 0.32% 14 General Government City Council City Clerk City Manager Human Resources City Attorney Finance Total General Government Public Safety Police Department Fire Department Total Public Safety FY 2017-18 FY 2018-19 FY 2019-20 Actuals Revised Proposed $ VAR 1,032,235 969,639 881,199 (88,440) 998,277 1,133,082 1,065,439 (67,643) 2,471,270 3,130,605 3,444,155 313,550 2,867,389 3,178,090 3,432,795 254,705 2,233,510 2,593,298 2,623,784 30,486 6,479,668 6,897,255 7,156,448 259,193 $ 16,082,349 $ 17,901,969 $ 18,603,820 $ 1,819,620 VAR -9.1% -6.0% 10.0% 8.0% 1.2% 3.8% 10.2 59,322,549 62,939,228 66,083,985 3,144,757 5.0% 49,977,713 51,048,010 53,190,704 2,142,694 4.2% $ 109,300,262 $ 113,987,238 $ 119,274,689 $ 5,287,451 4.6% Community Development Community Development Public Works -Water Quality Total Community Development Public Works Public Works - Municipal Operations Public Works Utilities Total Public Works Community Services Recreation & Sr. Services Libraries & Arts Finance - Parking Meters Total Community Services General Fund Non Dept Exp FY 2017-18 FY 2018-19 FY 2019-20 A,+i inic Revised Proposed $ VAR % VAR 11,644,418 12,916,636 12,871,228 (45,408) -0.4% 744,701 781,187 1,243,286 462,099 59.2% $ 12,389,119 $ 13,697,823 $ 14,114,514 $ 416,691 3.0% 24,394,050 26,393,860 26,907,927 514,067 1.9% 7,817,947 9,044,959 9,818,374 773,415 8.6% 3,995,163 4,336,142 4,448,750 112,608 2.6% $ 36,207,160 $ 39,774,961 $ 41,175,051 $ 1,400,090 3.5% 12,428,028 13,656,219 13,849,859 193,640 1.4% 8,901,646 9,670,065 9,244,579 (425,486) -4.4% 1,754,798 3,033,196 2,304,921 (728,275) -24.0% $ 23,084,472 $ 26,359,480 $ 25,399,359 $ (960,121) -3.6% 264,297 131,896 121,896 (10,000) -7.6% General Fund Operating Expenditures $ 197,327,659 $ 211,853,367 $ 218,689,329 $ 6,835,962 3.2% li FY 2018-19 FY 2019-20 Adopted Proposed Budget Budget $ VAR % VAR General Fund CIP 5,525,000 5,000,000 (525,000) -9.5% Facilities Financing Plan (FFP) 8,500,000 10,020,333 1,520,333 17.9% Facility Maintenance Plan (FMP) 1,000,000 2,500,000 1,500,000 150.0% Harbor & Beaches Capital Plan 4,000,000 5,500.000 1,500,000 37.5% 800 MHz Radio Fund 534,000 500,000 (34,000) -6.4% Neighborhood Enhancement Projects 2,428,885 5,071,115 2,642,230 108.8% Assessment Districts #114 & #114B - 88,804 88,804 0.0% Workers' Compensation - 3,000,000 3,000,000 0.0% General Liability 4,200,000 - (4,200,000) -100.0% Equipment Fund 150,000 - (150,000) -100.0% Total $ 26,337,885 $ 31,680,252 5,342,367 20.3% li • Consultant for Airport related issues: $400k • Fire Paramedic School: $200k (One -Time) • Fire EMS Equipment Replacement: $100k (One -Time) • Fire MetroNet JPA Membership Increase: $147k • General Liability/Property/Excess WC Insurance: $290k • CityNet Homeless Services: $200k • Maintenance & Operations Specialist & Bucket Truck: $63k • Wastewater Utilities Specialist (FTE) : $60k • Water Capital Outlay purchases: $130k (One -Time) • Contract resources to bolster internal and external audit efforts $110k Add a footer 18 �Otal $ 24,747,859 $ 28,085,796 $ 30,844,648 2,758,852 9.8% 19 FY 2017-18 Revised FY 2018-19 Adopted FY 2019-20 Proposed $ VAR % VAR General Liability 4,068,234 6,239,000 6,615,000 376,000 6.0% Worker's Compensation 2,753,921 3,753,921 4,610,000 856,079 22.8% Compensated Absences 2,509,547 2,533,649 2,625,002 91,353 3.6% IT Operations & Equipment 5,756,155 5,964,619 7,149,136 1,184,517 19.9% Vehicle Maint & Replacement 4,816,271 4,958,798 5,097,724 138,926 2.8% Other Equipment Replacement 800,893 800,893 895,535 94,642 11.8% Retiree Insurance or OPEB 4,042,838 3,834,916 3,852,251 17,335 0.5% �Otal $ 24,747,859 $ 28,085,796 $ 30,844,648 2,758,852 9.8% 19 860 EMf*yj 820 805 800 792 0 780 '+a 76.3 Ln 760 752 a_ 74 75` 0 728 7.30 724 726 726 727 720 700 680 660 20 2009 2010 2011 2012 2015 2014 2015 2016 2017 2018 2019 2020 Fiscal Year Accelerated PERS Payment History Normal Cost 15,424,068 1 16,178,468 1 16,766,294 1 17,887,855 Minimum Payment Additional Discretionary Payment Total Planned UAL Payment 21,265,608 - 24,958,890 8,914,595 25,698,507 26,469,557 8,801,493 8,530,443 21,265,608 33,873,485 34,500,000 35,000,000 Total Expected PERS Contribution Employee Contribution Total Annual PERS Cos 36,689,676 50,051,953 51,266,294 52,887,855 9.447.341 10.083.183 10.324.540 10.455.263 6 1 39.968.770 1 40.941.754 Orange Comparison County Pension Payment Plans 2017 Valuation1 • • • Agency AL UAL FS UAL Total Pmts Pmt Efficiency City of Anaheim Total2,534,550,976: .......................................................................................................................................................................................................:............................................................:...................................................................................................¢................................................................,.................................................... 741,068,980: 70.8% ♦ 765,071,137 1,514,945,993 198% City of Brea Total 384,756,109: 121,252,581 : 68.5% ♦ 125,739,198 257,714,835 205% :..................................................... City of Buena Park Total135,767,673: ......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:.................................................................:..................................................... .......................................................... .;...... 39,221,940: ......... ......... ... 711% ....................................................................... ♦ ................................................................. 40,454,4-41 78,190,765 193 6 City of Costa Mesa Total561,805,136: ........................................................................................................................................................................................................................................................................................................................................................................¢................................................................,.................................................... 212,923,672: 62.1 % 218,582,780 448,749,985 205% City of Cypress* Total ......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:.................................................................:..................................................... 77,989,853: 18,083,147: 76.1 % 19,428,798 38,181,448 197% City of FuIlertonTotal ......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:................................................................:..................................................... 759,201,771 234,893,103 69.1% 245,308,269: 513,852,707: 209% City of Garden Grove Total .......................................................................................................................................................................................................:............................................................:...................................................................................................¢................................................................;.................................................... 810,370,322 268,412,094 66.9% ♦ 277,299,537 568,946,411: 205% City of H untngton Beach Total 1,267,782,797 403,394,647 68.2% ♦ 415,378,946: 840,702,143: 202% ......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:.................................................................:..................................................... City of I rvine Total 648,190,242: ¢...........................................................¢........................................................................................................................................................................................................................ 154,834,682: 76.1 % 143,436,013: 265,164,006: 185% Cityof La Habra Total 109,736,831 26,498,700 75.9% ♦ 27,862,230: ........................... ¢................................................................ 56,060,884: 201% ;.................................................... City of Laguna Beach Total ......................................................................................................................................................................................................................................................................................................................................................................,................................................................,.................................................... 110,341,091: 27,243,435: 75.3% ♦ 26,964,768 50,220,994 186% City of Mission Viejo Total82,812,124 19.596,811 76.3°x6 ♦ 19,947,678: 35.963,154: 180% ....................................................................................................................................................................................................,........ City of Newport Beach Total 939,503,881: 319,088,982 66.096 305,994,956 509,864,150 167% ....................................................................................................................................... City of Orange Total ................................................................................................................................................................................................................. ................................................................ 851,746,500: .... 256,020,282 ...................................... 69.9% ..................................... ............. 265,870,894 I 548,323,701 206% C ity of S anta A n a Total ......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:.................................................................:..................................................... 1,955,454,608 613,781,439 : 88.8% 635,622,920: 1,280,054,051: 201% City of Tustin Total .......................................................................................................................................................................................................:............................................................:...................................................................................................¢................................................................;.................................................... 112,720,267 26,806,151 76.2% 28,340,198: 56,922,580: 201% City of Westminster Total127,883,624: .......................................................................................................................................................................................................:............................................................:...................................................................................................¢................................................................,.................................................... 39,342,203: 69.2% ♦ 40,431,030 79,306,054 196% City of Yorba Linda Total69,845,408: ......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:.................................................................:..................................................... 21,183,584: 69.7% 21,466,831 43,314,830 202% Irvine Ranch Water District Total 260,190,689: 62,900,429 : 75.8% 63,953,833: 111,870,935: 175% .......................................................................................................................................................................................................:............................................................:...................................................................................................¢................................................................;.................................................... Santa Margarita Water District Total 94,619,320 29,770,735 68.5% ♦ 30,545,326: 59,643,437: 195% Grand Total 11,995,269,252: 3,637,277,537: 69.4% 3,717,699,793: 7,357,993,063 199% an no/ 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2013 79.8% 0 70.3% 71.7% ------------ - -- -- 7 6%67.9 ---' - 6 5% _ _ _ _ -r--- 73.1% 62.8% -64.3% 60.8% CalPERS Projection Assuming 7.0% annual return - and no further ADPs 2014 2015 2016 2017 2018 2019 2020 Miscellaneous - Safety 2021 2022 2023 2024 121 FY19-20 Proposed Budget UNRESTRICTED RESOURCES 1 1,899,956 Additional Council approved FY 2018-19 appropriations 19BA-041 for emergency repairs due to heavy storms $ (550,000) 19BA-044 additional weed abatement $ (40,000) Revised Unrestricted Resources $ 1,3091?956 24 CHANGES TO THE PROPOSED BUDGET AS PRINTED - PERSONNEL RELATED Budget Do partment,Account N u m be r0e s c ri pti on Increase (Decrease) Approved Community Development .Add 1.0 FTE limited term (3 Year" Planning Technician to assist during General Plan Update process S 63.907 .................................................................................................................................................................................................................................................................................................................................................................................. Increase Department. Assistant .25 FTE limited term (3 -Year" to assist during the General Plan Update process S 17.490 .................................................................................................................................................................................................................................................................................................................................................................................. Human Resources Revised Employee Pension Contribution ('135.383:, .................................................................................................................................................................................................................................................................................................................................................................................. Police Department .Add two motorcycle officers to enhance school safety through additional traffic enforcement and presence 316.212 .................................................................................................................................................................................................................................................................................................................................................................................. Revenue offset from proposed motorcycle officer motor vehicle fine revenue estimated at $50.000 per year S [50.000:, .................................................................................................................................................................................................................................................................................................................................................................................. Continue limited term (1 -year; funding for cold case investigations S 50.000 .................................................................................................................................................................................................................................................................................................................................................................................. TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET - PERSONNEL RELATED $ 262,226 25 CHANGES TO THE PROPOSED BUDGET AS PRINTED - MAINTENANCE & OPERAT10NS Budget rtmentlAccount NumberlDescri Increase (Decrease) Approved City Manager - Airport Management Reduction to professional &technical services budget S (104,304) ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Library Remove Sculpture Garden Funding from 01060603-811054 Add ScuIDture Garden funding to a new account titled ScuIDture Garden VN B. 01060603-811059 Police Department $ [115 135 TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET - M&O $ 240,155 TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET - PERSONNEL AND M&O $ 502,381 TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET BYFUND General Fund $ 398,632 General Fund Arts & Culture (VNB) $ (135,300) Police Equipment Fund $ 103,749 Total Changes to the Proposed Operating Budget $ 367,381 • Revenues and reserves are strong • Proposed expenditures increase modestly • Full-time positions are generally flat • Reached agreement with almost all bargaining units • Continuation of aggressive pension payment plan • Maintain long-term funding of infrastructure savings plans • Full plate of CIPs funded • Funding for City priorities: homelessness, airport, General Plan update 27 Watching sales tax and TOT trends closely • Retail purchasing is changing and will continue to change Pension funded status highly sensitive to investment performance • Significant economic downturn likely to impair pension funded status Aging Infrastructure will continue to require additional investment • And resources to execute and complete the projects 28 Questions