HomeMy WebLinkAbout05/14/2019 - Special MeetingCITY OF NEWPORT BEACH
City Council Minutes
Special Joint Meeting with the Finance Committee
May 14, 2019
I. CALL MEETING TO ORDER - 4:00 p.m
II. ROLL CALL
Present: Mayor Diane Dixon, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council
Member Duffy Duffield, Council Member Jeff Herdman, Council Member Kevin Muldoon
(arrived at 4:12 p.m.), Council Member Joy Brenner, Finance Committee Member William
Collopy, Finance Committee Member John Reed, Finance Committee Member Joseph
Stapleton, Finance Committee Member Larry Tucker
III. CURRENT BUSINESS
A. Review of the Proposed Fiscal Year 2019-20 Budget
Council Member Muldoon recused himself during Assessment District Nos. 114 and 114b
discussions due to business interest conflicts.
Finance Director Matusiewicz provided a PowerPoint presentation to discuss the principles used in
the development of the budget, key points, the budget timeline, the transparency portal and video
tutorial, proposed budget summary, operating budget, General Fund sources and uses, proposed
General Fund surplus allocations, revenue sources, expenditures, and transfers, notable program
enhancements, Internal Service Fund charges, changes in full-time staffing since 2009, the
accelerated Ca1PERS payment history, unfunded pension liability payment comparisons between
Orange County cities, the pension fund status projection, and available unrestricted resources. City
Manager Leung highlighted the proposed budget revisions, reported on the City's budget stability,
emphasized the need to look at aging infrastructure, and highlighted challenges with sales tax,
Transient Occupancy Tax (TOT), and unfunded pension liability.
Mayor Pro Tem O'Neill explained the difference between the various funds, discussed the purpose of
the Facilities Financial Plan (FFP), and commended the City's approach to the pension issue
compared to other Orange County cities.
In response to Council questions, Finance Director Matusiewicz explained transfer-in/reclassification
amounts and discussed airport -related costs.
Mayor Dixon commended staff for consistently trying to hold the line on budget spending and staffing,
but questioned if it is more feasible to hire staff than to contract out staffing. Council Member
Herdman indicated, if staffing were to increase, it could occur to assist with enforcement.
Council Member Muldoon commended all City employees for working with the City to assist with the
pension issue and encouraged the City to continue with the fresh start program at the highest level
feasible.
Proposed Budget Reuisions:
City Manager Leung discussed the sculpture garden funding sources and indicated it would be better
to move it to a more restrictive fund.
Volume 64 - Page 95
City of Newport Beach
Special Joint Meeting with the Finance Committee
May 14, 2019
Council Member Herdman requested a one-time $10,000 payment for the Orange County River Park
Project.
Regarding the request for two additional motorcycle traffic officers, discussion ensued relative to the
need and justification for the officers, other duties they may perform, requests for more enforcement,
the number of graduates from the police academy, and how all the vacancies will be filled within the
next year in the Police Department. Mayor Pro Tem O'Neill and Council Member Muldoon indicated
they would need to see more data prior to making a decision. Council Member Avery stated his district
repeatedly requests more police presence for traffic and crime prevention. Mayor Dixon noted her
district receives most of the visitors, has concerns about public safety, requires a lot of police attention,
and could use more officers; however, agreed staff should come back with data related to traffic issues.
Council Member Brenner expressed support for the request, believing police presence is a deterrent
to bad behavior and this is a cost the City should bear to maintain its property taxes.
Mayor Pro Tem O'Neill suggested removing the motorcycle officer request from the budget revision
list, but bringing it back as a separate item after the budget is adopted since more analysis is needed.
Finance Committee Member Stapleton stated he is proud that the City can focus on major issues like
services, capital improvements, maintenance and improvements, and paying down unfunded pension
liability. He noted that, while other cities may need to use reserves, Newport Beach will have fully
funded reserves and can continue to discuss surpluses and paying down unfunded pension liabilities.
Finance Committee Member Tucker reviewed the increase in unfunded pension liability over the
years, suggested the City plan for beyond the 15 year payment period, and noted the City is doing a
good job with its unfunded pension liability payments but this might be something it cannot handle
on its own in the future.
Jim Mosher discussed the Costa Mesa Sanitary District's budget and requested the City also
breakdown each line item and include it on the online version. He also questioned Council's wages
listed in the budget. Revenue Manager Giangrande explained the salary discrepancy, reported on
Council's salaries, and confirmed it conforms with the City Charter. City Manager Leung indicated
staff can look at providing more detail in the next budget for significant dollar expenditures.
Mayor Dixon and Mayor Pro Tem O'Neill thanked current and past Finance Committee members,
and staff, and assured everyone the City continues to take its fiduciary duties very seriously.
IV. PUBLIC COMMENTS - None
V. ADJOURNMENT - 5:27 p.m.
The special meeting agenda was posted on the City's website and on the City Hall Electronic
Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive
on May 9, 2019, at 4:00 p.m.
Leilani I. Brown
City Clerk
r
Diane Brooks Dixon
Mayor
Volume 64 - Page 96