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Home My WebLink AboutResource Allocation Plan 2008CITY OF NEWPORT BEACH RESOURCE ALLOCATION PLAN LVTA Fiscal Year 2007 -08 NEWPORT BEACH, CALIFORNIA RESOURCE ALLOCATION PLAN FISCAL YEAR 2007 -2008 \LI�� Prepared for the Newport Beach City Council: Mayor Steven Rosansky Mayor Pro Tem Edward D. Selich Council Member Keith D. Curry Council Member Leslie Daigle Council Member Nancy Gardner Council Member Michael E Henn Council Member Don Webb As Employees of the City of Newport Beach, we choose to embrace and practice the following values: In practicing integrity, we strive to be honest, reliable, respectful, ethical, fair, and authentic. We will serve in a manner consistent with community values and follow through on our commitments. In practicing empathy, we will be sensitive to the needs of others by being compassionate, thoughtful, open- minded, willing to understand, and by being good listeners. In practicing service, we understand our roles as representatives of the City. We will endeavor to practice humility, to make things better for others, and to treat others, as we want to be treated. In practicing excellence, we will strive to do our best by demonstrating competence and a commitment to quality. We will be innovative, thorough, efficient, and effective in our work. In creating a positive work environment, we will express our appreciation for, and recognize, others. We will follow a work ethic, take pride of ownership in our work, be courteous, encourage creative thinking, seek and be open to challenges, create esprit de corps, maintain a safe environment, and act with enthusiasm. In creating unity of purpose, we will practice cooperation and teamwork. We will practice open communication by keeping others informed, considering the needs of others, and at times deferring to the needs of others. In practicing responsibility, we will be accountable in our work, take initiative, make appropriate decisions, and act decisively. We will acknowledge our errors and correct them. In practicing loyalty, we will respect the individual and the position. We will support each other, abide by decisions, and strive to always present a positive image of the City. CITY OF NEWPORT BEACH RESOURCE ALLOCATION PLAN 2007 -2008 TABLE OF CONTENTS RESOURCE ALLOCATION PLAN Tableof Contents .................................................................................................................. ............................... i Listof City Officials .............................................................................................................. ............................... ii City Manager's Transmittal Letter & Budget Overview ............................ ............................... ............................iii INTRODUCTION User's Guide ......................................................................................................................... ..............................1 OrganizationChart 2007 - 2008 .............................................................................................. ..............................6 SUMMARIES Miscellaneous Statistical Information ............. ............................... Historical & Projected Revenues by Category .............................. Historical & Proposed Operating Expenditures by Fund ............... Operating Expenditures by Department & Type ........................... Historical Capital Projects Spending .............. ............................... Operating Expenditures - AII Funds ............... ............................... Summary of Estimated 2006 -2007 Year End Balances ................ Summary of Estimated 2007 -2008 Year End Balances ................ Projected Fund Transfers All Funds .................................. ............................... 9 .................................. .............................10 .................................. .............................13 .................................. .............................14 .................................. .............................15 .................................. .............................16 I............................. ............................... DEPARTMENT OPERATIONS CityCouncil ..................................................... ............................... CityClerk ........................................................ ............................... CityManager ................................................... ............................... Human Resources .......................................... ............................... CityAttorney .................................................... ............................... Administrative Services ................................... ............................... Police Department .......................................... ............................... FireDepartment .............................................. ............................... PlanningDepartment ...................................... ............................... Building Department ....................................... ............................... General Services ............................................ ............................... LibraryServices .............................................. ............................... Recreation & Senior Services ......................... ............................... PublicWorks ................................................... ............................... Utilities Department ......................................... ............................... Description of Internal Service Funds ............. ............................... Debt Service & Other Activities ....................... ............................... ................. ............................... 20 ................. ............................... 23 ................. ............................... 26 CAPITAL IMPROVEMENTS CapitalImprovements .......................................................................... ............................... ............................100 APPENDICES Tide& Submerged Land Fund ............................................................. ............................... ............................106 CapitalAsset Schedule ........................................................................ ............................... ............................107 Equipment Maintenance & Replacement Fund ............................................................... ............................... 111 RollingStock in Service ................................................................................................... ............................... 112 Seven -Year Comparison of Full -Time Positions ............................................................... ............................... 113 Glossary of Fund Descriptions & Accounting Terms ........................................................ ............................... 114 II NEWPORT BEACH CITY OFFICIALS CITY COUNCIL L to R: Council Members Michael F. Henn and Keith D. Curry, Mayor Pro Tem Edward D. Selich, Mayor Steven Rosansky, Council Members Nancy Gardner, Don Webb and Leslie Daigle L to R: City Manager Homer Bludau, City Attorney Robin Clauson, City Clerk LaVonne Harkless Sharon Wood....... Dave Kiff .............. Dennis C. Danner Jay Elbettar ......... Steve Lewis ......... Mark Harmon....... Barbara Ramsey. Linda Katsouleas. David Lepo .......... Bob McDonell...... Steve Badum....... Wes Morgan........ Pete Antista ......... 11 ..... Assistant City Manager /Director of Community & Economic Development ................................ ............................... ......................Assistant City Manager ....................... ............................... Administrative Services Director /Treasurer ................................................................ ............................... Building Director ........................................................................... ............................... Fire Chief ................................................. ............................... General Services Director ............................................... ............................... Human Resources Director ................................................... ............................... Library Services Director ............................................................... ............................... Planning Director ............................................... ............................... .........................Police Chief ........................................................ ............................... Public Works Director .............................. ............................... Recreation & Senior Services Director ............................................ ............................... ......................Utilities Director CITY OF NEWPORT BEACH Honorable Mayor Rosansky and City Council Members City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92663 Dear Mayor Rosansky and Council Members: As directed by the Newport Beach City Charter, it is my pleasure to submit the 2007 -2008 City Budget to you. As you know, the Budget is a plan of financial activity for the fiscal year that starts July 1, 2007 and ends June 30, 2008. As has been past practice, the Budget is contained in three major volumes: • Resource Allocation Plan (a reader - friendly version of the Budget and Capital Improvement Plan) • Budget Detail (revenue estimates and line by line proposed expenditures for operations and maintenance of City services) • Capital Improvement Plan or "CIP" (a description of the significant capital projects and infrastructure improvements planned for Fiscal Year 2007 -08). To assist readers in the review of the documents, we have included a Users Guide and a Glossary of Terms within the Resource Allocation Plan. The Users Guide includes a description of the Budget process, how the Budget is administered after adoption, and a description of the various funds utilized by the City to properly account for its revenues and expenditures. Readers will find the Glossary of Terms at the end of the Resource Allocation Plan. This Glossary defines many of the terms used in governmental accounting within budgets, including a definition of each fund used by the City. I have summarized the information within the Budget — as well as how the Budget meets the goals and priorities of the City Council — in a Budget Overview that follows this letter. This Overview is intended to provide background and supporting information for review of the budget itself. In closing, let me once again express my appreciation to the very talented and dedicated members of all our City departments who labor over the details of this document to produce an accurate and understandable Budget each year. Two departments in particular deserve attention for extraordinary efforts. The Administrative Services Department has pulled together all the details and summaries to produce the completed budget document, and the Public Works Department has worked extensively on our outstanding Capital Improvement Program. Sincerely, o Homer L. Bludau ; City Manager City Hall 3300 Newport Boulevard Post Office Box 1768 Newport Beach, California 92658 -8915 - www.city.newport- beach.ca.us 111 A Budget Overview The mild climate, beautiful beaches and recreational boat harbor, excellent shopping and dining opportunities, and multitude of recreational activities, make the City of Newport Beach a destination community for residents, visitors, and businesses. Newport Beach is a full service city, providing nearly all public services including police, fire, water, sewer service, trash collection, libraries, street maintenance, traffic management, parks, and marine safety. Preparation of the annual City budget provides us with another opportunity to review operations, recognize our strengths, and address any issues or challenges. Some of the areas we addressed during the development of this budget are: The City has recently updated our Facilities Financing Plan which includes a review of existing City structures as well as developing a financing plan for the replacement of these facilities, such as Police Headquarters, Fire Stations, Library Branches, Lifeguard Headquarters, OASIS Senior Center, and the Civic Center Complex. Three new facilities will be added to the City's Capital Assets this calendar year: Fire Station #7, the Back Bay Science Center, and the Newport Coast Community Center. In addition, fundraising efforts have been started for the replacement of the OASIS Senior Center. We believe the City is well positioned to fund the replacement of its facilities with the replacement program lasting approximately twenty years. • In the fall of 2006, voters approved the City's comprehensive General Plan update, the first in 30 years. The General Plan serves as the statement of official policy for Newport Beach's long term physical development. Eleven elements were updated or written for the first time, and a complete program environmental impact report was prepared. The update process occurred over several fiscal years and involved the use of several consultants as well as a significant public participation component. The implementation of the Plans' policies is now in progress. The Planning Department's major project for this fiscal year is the rewrite of the City's Zoning Code, which will serve as the implementation tool for many of the new policies included in the General Plan. • Also in the fall of 2006, we began a comprehensive cost allocation study to identify overhead expenses City -wide and by department. Concurrent with the cost allocation study, we are conducting a cost of services study to ensure our fees and charges are appropriate. The last time we completed similar studies was in 1996. Both of these projects will be completed and submitted to Council with a goal toward implementing any necessary changes this summer. The cost of services and cost allocation plan models will allow City staff to prospectively identify changes in the level of services for which fees are imposed and annually recommend to the City Council adjustments to the Master Fee Schedule. • Negotiations with all the miscellaneous employee bargaining units are in progress as those contracts all expire on June 30, 2007. The Firefighters Association and the Fire Management Association contracts expire December 31, 2007, so negotiations will soon begin with those groups, too. iv GENERAL FUND vs. TOTAL BUDGET. The General Fund is the key operating fund within the City's budget. The General Fund is used to account for discretionary revenues and expenditures while all other funds are used to account for enterprise activities, internal service activity, major capital improvement projects and special revenue sources that are otherwise restricted for specific purposes. Enterprise funds include the activities of the Water and Wastewater operations. Internal service funds are essentially internal cost centers used to account for centralized activities including claims management, equipment replacement, compensated absences and post employment medical benefits. Capital project funds account for major facility improvements, such as the Mariners Library, Back Bay Science Center and Fire Station #7. Special revenue funds include gas tax revenues, Measure M taxes and revenues generated from tidelands just to name a few. For the purposes of this overview, enterprise activity, special revenue sources and major capital improvement funds are segregated from General Fund activity and are summarized as "All Other Funds." REVENUE OUTLOOK. We are projecting FY 2007 -08 General Fund revenues at $147.0 million. This is a slight decrease from our revised FY 2006 -07 revenue estimate of $147.5 million and is primarily due to the completion of several grants as well as one -time fundraising efforts for the City's Centennial Celebration. Property tax revenues, estimated to be $73.1 million in FY 2007- 08, account for approximately 50% of total General Fund revenues. This is an almost 4% increase over FY 2006 -07 property tax revenues. Sales tax and Uniform Transient Occupancy tax are the next largest component of the City's General Fund revenue with a FY 2007 -08 estimate of $34.2 million combined. The table below highlights some of the areas of change and projected change in General Fund revenues and all other revenues: Revenue Total Property Taxes Taxes Other than Property Licenses and Permits Intergovernmental Charges for Services Fines, Forfeitures & Penalties Use of Money and Property Other Revenue Total General Fund Revenue All Other Revenue Total City Revenue Less Internal Premiums Total City Revenue Net of Internal Charges 2006 -07 2006 -07 2007 -08 Change from Adopted Budget Amended Budget Proposed Budget Amended $ 67,102,454 $ 38,660,853 $ 2,819,900 $ 2,488,100 $ 13,211,561 $ 3,567,500 $ 8,181,010 $ 418,142 $ 136,449,519 $ 52,467,322 $ 188,916,841 $ 70,493,414 $ 39,591,655 $ 2,898,343 $ 6,336,272 $ 13,473,234 $ 3,580,338 $ 8,281,363 $ 2,841,354 $ 147,495,973 $ 66,967,270 $ 214,463,243 $ 73,083,537 3.67% $ 41,371,520 4.50% $ 3,876,320 33.74% $ 2,333,100 - 63.18% $ 13,701,298 1.69% $ 3,593,500 0.37% $ 8,489,867 2.52% $ 515,800 - 81.85% $ 146,964,943 -0.36% $ 64,442,708 -3.77% $ 211,407,651 -1.42% $ (14,331,323) $ (14,363,323) $ (15,731,431) 9.53% $ 174,585,518 $ 200,099,920 $ 195,676,220 -2.21% Total City revenues, excluding internal premiums, are expected to decrease 2.21 % from revised projections for FY 2006 -07 to $195.7 primarily due to the completion or pending completion of several significant community facilities such as the Mariners Branch Library and the Back Bay Science Center, which were partially funded through some significant grants and donations. Total revenues from outside sources are estimated to be approximately $211.4 million. EXPENDITURE OUTLOOK. The General Fund contains expenditures for all operating City departments except for the Harbor Resources Division within the City Manager Department and the Oil and Gas Division of Utilities which are all funded through Tidelands, and the Water and Wastewater Divisions within Utilities. The General Fund is usually the most discussed fund and is generally of most interest to residents. In 2007 -08, the proposed General Fund expenditures, including General Fund capital improvements, total $141.3 million, a decrease of $5.4 million (3.66 %) from the amended FY 2006 -07 General Fund budget. This decrease is primarily due to the completion of several major capital improvements. Function and Activities GENERAL FUND BUDGET General Government Public Safety Community Development Public Works Community Services Total General Fund Operating Budget General Fund CIPs Total General Fund Budget TOTAL CITY BUDGET Total Operating Budget Total CIP Budget Total City Budget Less Internal Charges Total City Budget Net of Internal Charges 2006 -07 Adopted Expenditures $ 13,682,487 $ 68,613,217 $ 6,846,211 $ 27,743,326 $ 10,857,621 $ 127,742,862 $ 7,215,278 $ 134,958,140 $ 165,574,748 $ 40,051,405 $ 205,626,153 $ (14,331,323) $ 191,294,830 2006 -07 Amended Expenditures $ 14,420,744 $ 69,538,411 $ 7,547,629 $ 28,079,344 $ 12,268,462 $ 131,854,590 $ 14,801,081 $ 146,655,671 $ 171,707,113 $ 66,333,313 $ 238,040,426 $ (14,363,323) $ 223,677,103 2007 -08 Proposed Expenditures $ 13,272,064 $ 71,051,729 $ 7,191,318 $ 28,982,445 $ 11,981,757 $ 132,479,313 $ 8,808,950 $ 141,288,263 $ 171,608,575 $ 37,316,135 $ 208,924,710 $ (15,731,431) $ 193,193,279 Change from Ampl rlpd -7.97% 2.18% -4.72% 3.22% -2.34% 0.47% -40.48% -3.66% -0.06% - 43.74% - 12.23% Q 53 -/ -. o.00 io Total proposed City expenditures in 2007 -08, including debt service and capital projects, is $208.9 million. Excluding internal service premiums charged to fund insurance reserves, equipment maintenance and replacement, and post employment medical benefits, total expenditures to outside sources are proposed to be approximately $193.2 million. The budget shortfall between total external revenues and expenditures is due to the timing of Capital Improvement Project (CIP) revenues and expenditures. CIP projects often span one or more fiscal years. Of the $193.2 million of proposed expenditures in fiscal year 2007 -08, a total of $14.7 million CIP projects are estimated to be rebudgeted from a prior fiscal year because the project was delayed or is only partially completed. These funds are reserved in a Capital Appropriations reserve, but when the appropriation is carried forward to the following year, this re- appropriation causes expenditures to exceed current year revenues. Excluding CIPs and internal charges, the total FY 2007 -08 operating budget amounts to $171.6 million. This represents a .06% decrease from the 2006 -07 amended budget, despite increases in salaries and benefits, staffing increases, the opening of the Newport Coast Community Center, additional maintenance costs for parks, and increased litigation expenses. These increases were offset by non - recurring events in FY 2006 -07, such as the Centennial Celebration, General Plan Update, Spheres Issues, Council Elections, and contract encumbrances that were carried forward from the prior year. Vi I am recommending the addition of seven new full -time positions in the 2007 -08 budget and the deletion of two full -time positions for a net change of five full -time positions. The role of the City Attorney's office has changed resulting in the requested deletion of the Deputy City Attorney/ Litigation and their Department Assistant. The Deputy City Attorney's functions will be contracted to outside law firms and the Department Assistant will be replaced with a part-time employee. The additional positions are primarily due to the upcoming opening of two new facilities: Newport Coast Community Center and the Back Bay Science Center: • Marine Refuge Supervisor (City Manager — Harbor Resources) — Tidelands • Public Information Officer (City Manager - PIO) — General Fund • Parks Supervisor - Contracts (General Services) — General Fund • Groundsworker II (General Services) — General Fund • Department Assistant (Recreation and Senior Services) — General Fund • Facilities Maintenance Worker II (Recreation and Senior Services) — General Fund • Department Assistant (Utilities) — Water To review historical staffing trends, please refer to the Seven -Year Comparison of Full -Time Positions in the Appendix Section. CAPITAL IMPROVEMENT PROGRAM (CIP). The CIP serves as a funding plan for public improvements, special projects, and many ongoing maintenance programs. Projects in the CIP include construction and rehabilitation of arterial highways, local streets, storm drains, bay and beach improvements, parks and buildings, and water and wastewater improvements. The FY 2007 -08 CIP budget isjust over $37.3 million and consists of nearly 100 projects. Specific project plans for this budget year are discussed in more detail in the CIP section of the Budget documents, as well as the printed Capital Improvement Program budget document. There is also a summary of Historical Capital Projects Spending in the Introduction Section of this document. CONCLUSION. This budget will assist the City of Newport Beach in continuing to provide and improve the quality of services that the citizens of this community have come to expect and deserve. The financial plan for FY 2007 -08 is conservative and balanced. All Council reserve fund policies have been met and the proposed General Fund expenditures are fully offset by anticipated General Fund revenues. I am pleased to present the FY 2007 -08 budget to the City Council and to the citizens of Newport Beach, California. vii 0 0 CITY OF NEWPORT BEACH BUDGET FOR FISCAL YEAR 2007 -2008 User's Guide Each year the City prepares and adopts, by formal Resolution, an annual budget as required by the City's Charter. The budget is the operating and capital expenditure plan for the City for the fiscal year beginning on July 1 and ending on June 30 of the following year. Budget Process — During December of each year, the Administrative Services Department prepares preliminaryfund balance estimates for the currentyearand preliminary revenue estimates for the next fiscal year. In January of each year, the Administrative Services Department prepares a budget calendar and issues budget instructions and expenditure detail to each department for use in preparation of the next year's City budget. Included in these instructions are budget guidelines and appropriation limits for each department. These guidelines are developed by the Administrative Services Director and approved by the City Manager. After submission of revenue and appropriation requests by each department, the Administrative Services Department summarizes the requests for review by the City Manager and department heads. After review at the City Manager level, the Administrative Services Department prepares the City's proposed budget for the next fiscal year and submits it to the City Council. Thereafter, the City Council holds as many budget study sessions as it deems necessary. All proposed Council changes in the City Manager's proposed budget are added to a budget checklist. Subsequent to Council review and prior to its final adoption, the City Manager provides each Council Member with an itemized list of all proposed changes to permit a roll call vote by the City Council on each item during the budget hearing at the regular Council meeting. The City Council holds the budget hearing and adopts the budget on or before June 30 as required by the City Charter. The Budget is prepared on a modified accrual basis with all appropriations lapsing at the close of the fiscal year. If an expenditure of an appropriation is required but unexpended at the close of the fiscal year, the appropriation must be rebudgeted or reappropriated by the City Council. Administration of the Annual Budget — During the budget year, department heads and their designated representatives may only authorize expenditures based on appropriations previously approved by City Council action, and only from accounts under their organizational responsibility. In addition, budget expenditures may only be authorized in the year appropriated. Department heads are responsible for not authorizing expenditures above budget appropriations in any given expenditure classification within their purview, without additional appropriation or transfer as specified below. New Appropriations. During the Budget Year, the City Council may appropriate additional funds for special purposes by a City Council Budget Amendment. The City Manager has authority to approve requests for budget increases not to exceed $10,000 in any Budget Activity or Capital Project. All budget amendment increases exceeding $10,000 shall be referred to the City Council for approval. Transfers. During the fiscal year, actual expenditures may exceed budget appropriations for specific expenditure line items within departmental budgets. If a total departmental budget, within a specific Classification, is not exceeded, the Administrative Services Director has the authority to transfer funds within that Classification and department, to make the most efficient use of funds appropriated by the City Council. (Salaries and Benefits, Maintenance and Operation, Other Charges, and Capital Outlay are the City's four Classifications.) Realignments. Further, funds may be realigned between one Department Budget Activity and another, within the same Classification, with City Manager approval. For example, if a Fire Department function and the employee who accomplishes it are replaced by a slightly different function assigned to the Police Department, the City Manager may authorize the transfer of appropriate salary and benefit funds to support this function. Reorooramminp. Any reprogramming of funds among the four Classifications (Salaries and Benefits, Maintenance and Operation, Other Charges, and Capital Outlay) within a given fund requires the City Manager's approval. Any budget revision that changes the total amount budgeted for any fund (other than the minor provisions allowed for the City Manager) must be approved by the City Council. Capital Projects. The department head having primary responsibility for a Capital Project (usually the Public Works Director) is authorized to encumber and approve subsequent expenditure of City funds for Capital Projects. However, contracts in excess of $30,000 require specific City Council authorization at the time of contract award. In addition, any contracts not of format and wording already approved by the City Attorney require specific City Attorney review and approval prior to contract award. The budget document is intended to provide the public concise and readable information about the City of Newport Beach's proposed operating and capital budgets, as well as anticipated funding sources. The document is actually prepared in three separate volumes: the Resource Allocation Plan, the Budget Detail, and the Capital Improvement Program. The Resource Allocation Plan is designed to be the summary "user friendly" document for the public. It is divided into the following five major sections: (The Table of Contents lists every subject covered in the budget document and its page number.) • Introductory Section — includes the Table of Contents, City Organization Chart, List of City Officials, and the City Manager's Letter of Transmittal. • Summary Section — includes a table of Miscellaneous Statistics for the City, Revenues by Source, Expenditures by Function, Estimated Fund Balances, and Schedule of Fund Transfers. • Operating Budgets — includes proposed operating budgets by department. • Capital Improvement Program — includes proposed capital improvement budgets by funding source. 2 • Appendix — includes a summary of the Tide and Submerged Land Fund; a description of the Internal Service Funds; Land, Structures and Improvements for the City; a summary of Rolling Stock in Service; a Seven Year Comparison of Full - time Positions; a listing of Debt Service obligations for the City; and a Glossary of accounting terms and definitions of terms used in the Newport Beach Budget documents. Both the Budget Detail volume and the Capital Improvement Program volume are designed to provide the reader more detail on the proposed operating and capital improvement expenditures. The Capital Improvement Program volume also serves as a Five Year Proposed Capital Improvement Plan. For the most part, the General Fund is the portion of the City's operating budget that funds the majority of City services. This fund is used to account for fiscal resources which are dedicated to the general government operations of the City, and which are not required to be accounted for in another fund. Examples of the services funded by the General Fund include Police, Fire, and Lifeguard Services; Refuse Collection; Public Library; Recreation Programs; much of the City's expenditures on street maintenance; Planning and Building, and Engineering services; as well as the general administration of the City. In addition, many Capital Improvements are funded by the General Fund. The General Fund and its activities are primarily supported by property, sales, and transient occupancy taxes. In addition, the other revenue sources supporting General Fund activities include: Licenses, Fees and Permits; Intergovernmental Revenues; Charges for Services; Fines, Forfeitures and Penalties; Revenue from the Use of Money and Property; Contributions; and Other Miscellaneous Revenue. By far, the City's largest revenue source is property taxes. The City's second largest single revenue source is Sales Tax, followed by Transient Occupancy Tax. Together, these three revenue sources provide nearly 73% percent of total General Fund revenues. In addition to the City's General Fund, there are numerous other funds that help finance City expenditures, particularly capital improvements. The City's Special Revenue Funds are used to account for the proceeds of special revenue sources, which are legally restricted to expenditures for specific purposes. The best example of a special revenue fund is the City's Gas Tax Fund, which is funded by the State Gasoline Tax, and which can only be expended for street repair, construction, and maintenance. The City has many other special revenue funds that are all included in the Budget. The City employs Internal Service Funds to account for vehicle maintenance and replacement, as well as all compensated absences, general liability, workers' compensation, and other insurance payments. These internal service funds are funded by charging each of the operating departments a rate computed to support these activities. Finally, the Budget includes Enterprise Funds, which are used to account for City operations that are financed and operated in a manner similar to private business enterprises. The objective of segregating activities of this type is to identify the costs of providing the services, and to finance Kt them through user charges. The two main City enterprise funds are the City's Water Fund and the Wastewater Fund. Both of these funds are financed by user charges to the customers (residents and businesses of Newport Beach). Appropriation (Gann) Limit — Article XI 1113 of the California Constitution (Proposition 4) specifies that tax based appropriations of government entities (with certain exclusions) may increase annually only by a limited amount (primarily to allow for population increases and inflation). Newport Beach has been under its Gann Limit by a comfortable margin each year. For 2006 -07, the appropriations limit adopted by the City Council, in accordance with Revenue and Taxation Code Section 7910, was $125,314,360. Calculations determining this amount, which is almost $21 million greater than the budgeted proceeds of taxes (even without adjusting for exclusions) are verified as part of the City's annual audit. The Gann Limit for 2007 -08 will be calculated in late May, 2007, and presented to the City Council for adoption, as required. In addition to the Annual Budget, the City's audited financial statements for the prior fiscal years are available in the Administrative Services Department, City Clerk Department, and each of the City's library branches. Fund Balance Policy — The City Council has recently adopted a revised official policy (Policy F -2 in the City of Newport Beach Council Policy Manual) regarding reserve levels among its various funds. This policy, in part, states that "The City Council has determined that a General Fund Contingency Reserve be created and that the balance in this reserve shall be maintained with not less than 12.0 percent of the appropriation budget total within the General Fund of the City's annual approved budget." The balance in this reserve is currently at the targeted amount. In addition, Policy F -2 includes a designated Reserve for Capital Improvement to fund replacement of City owned buildings. In addition to the General Fund's reserves, other reserve levels have been established. In the Tide and Submerged Land Fund, reserves are designated for Upper Newport Bay restoration projects. The City's Permanent Endowment Fund (Robinson SkinnerAnnuity) provides investment earning be reserved for dredging projects in Newport Bay. Reserves in the City's Water Enterprise Fund and the Wastewater Enterprise Fund are designed to guarantee their operation and are to be used for emergency repairs of the systems. Reserves have also been established for the City's Internal Service Funds, which fund such activities as Equipment Maintenance and Replacement, and Insurance Reserves for such items as liability, workers' compensation, compensated absences, retiree insurance, and disability. Debt Administration —The City does not issue debt instruments to finance operating activities; therefore Debt Service Expenditures are the result of capital financing ventures. There are two principal reasons why debt instruments are issued. The first circumstance is when the cash flow for the construction or purchase of a long -term asset would cause a significant strain on the City's cash flow and the asset to be financed will benefit many service periods. In no instance would the City select the duration of a given debt instrument to extend beyond the expected life of the asset financed. The second scenario arises when an asset to be purchased may not cause a significant cash flow strain but it would be economically advantageous to finance the asset rather than to purchase it outright (e.g. occasionally the City can borrow money at a lower rate than its investment portfolio is earning). Information regarding the City's current Debt Service Expenditures is included in the section entitled, Other Activities. 0 Cash Management — The City pools all cash and investments of all funds, except for funds required to be held by outside fiscal agents under the provisions of certificates of participation and investment funds in its deferred compensation plan. Under the provisions of the City's investment policy, and in accordance with Section 53601 of the California Government Code, the City may deposit and invest in the following: • Certificates of Deposit • Negotiable Certificates of Deposit • Bankers Acceptances • U.S. Treasury Issues • Federal Agency or U.S. Government - Sponsored Enterprise Obligations • Commercial paper • Repurchase Agreements and Reverse Repurchase Agreements • Passbook Savings Accounts • Local Agency Investment Fund (State of California) • County Investment Pool (Los Angeles) • Medium Term Corporate Bonds /Notes • Mortgage- backed Securities and Asset - backed securities • Municipal Bonds • Money Market Funds The City allocates interest to all funds as required by Federal, State, County, or local code. Each fund allocated interest is indicated on the Revenue Summary of the Budget Detail book. 5 ELECTORATE r BUILDINGCODE 1 BOARD OF APPEALS r an CLERK CIVIL BERVICE BOARD L- - - - - -J r- - - - - -i PLANNING COMMISSION L- - - - - -J FF ASSISTANT CITY MANAGER CommunRy.B...coeveb riet CWa Enfwmmenl PLANNING Land Use and Development Long -Range Planning Planning Commission Support Housing Programs BUILDING Administration Plan Chec4/Penntt Services Public Counter Inspections Use and Occupancy Residermal Building Records FIRE Fire Suppression(Operallons) Ocean LifeguaMs Training and Education Hazardous Materials Fire Prevention Junior Lifeguard Program Admlastratlen Emergency Medical Services POLICE Patrol Support Services Treffm Chref of Police Detective ADMINISTRATIVE SERVICES c ou .ntinglRepoltinglBudgeting Treasury Management Bill, & Receivables PayrolllAaounts Payable Cashiering Geographic Information Systems Revenue Information Technology Purchasing & Warehousing Printing &Postal Services O ELECTED OFFICIALS Fiscal Year 2007 -2008 (updated March 23, 20)7) 10 MAYOR s COUNCIL II CITY ATTORNEY II CITY MANAGER r — — — — — — i BOARD OF LIBRARY TRUSTEES L- - - - - -J r PARKS,BEACHES& , RECREATION COMMISSION r- - - - - -� CITYARTS COMMISSION L- - - - - -J r — — — — — — - HARBORCOMMISSION I ASSISTANTCITYMANAGER Hamor Rassmm wt.l'i -i Emlmomemal Erftoca m UTILITIES waterservics wastinatercouaeion Electrical Services Oil & Gas Production Administraaum Street Lights GENERAL SERVICES Padua and Trees Operetions Support Field Maintenance Traffic Signs &MaIXings Building Maintenance Refuse Collection Equipment Maintenance Recycling PUBLIC WORKS Engineering CIP Design &Ccnstrucdon Imaid ... ure Master Planning Development Services Traffic Planning& Engineering Public Right of Way Permuting LIBRARY SERVICES Central Library &Branches Information &Reference Services Adult & Youth Programs Arts & Cultural Services Literary Services Board of Library Trustees Support City Arts Commission Support Sister City Association Support RECREATION & SENIOR SERVICES Youth, & Adult Sports Pmgrams Senior Programs &Services PlaygmundlPark Development Special Events Fecilily Manage-npAReservalum. PB&RCOmmdsion Support HUMAN RESOURCES R aumnib t General Llablllly EmployselLabor Relations Benefits Administration I ClassifcabonlCompensabon Workers COmpensaticn Cilyvdde Troming Retiree Counseling &Benefits Civil Service Board Support Grievances & Disopllnes r - - - -� COUNCILAPPOINTED WARDS &COMMISSIONS COUNCILAPPOINTED POSITIONS CITY OEPa =..- TABLE OF MISCELLANEOUS STATISTICAL INFORMATION FISCAL YEAR 2007 -2008 COUNCIL- MANAGER FORM OF GOVERNMENT RESIDENTIAL POPULATION Uanumy 1, 2006 est.) Permanent 83,361 Summer 100,000 TOURIST POPULATION 20,000 to 100,000 per day AREA Land Bay Ocean TOTAL Senate Miles 25.9 2.5 23.0 51.4 CITY WATER SERVICE CONNECTIONS NUMBER OF FIRE STATIONS NUMBER OF CITY LIBRARIES NUMBER OF PARKWAY TREES RECREATIONAL ACREAGE Ocean Water Harbor Waters Parks Beaches TOTAL 26,369 8 4 38,000 Acres 14,894 1,600 450 237 17,181 Newport Beach is one of Southern California's most scenic and dynamic communities. It surrounds Newport Bay, well known for its picturesque islands and one of the greatest natural recreational boat harbors in the world, accommodating over 9,000 boats of all types docked within its 21 square mile harbor area. This bay area and the 23 miles of ocean beach offer outstanding fishing, swimming, surfing and aquatic sports activities. The City has a permanent population of approximately 80,000. During the summer months, the population grows to over 100,000 with 20,000 to 100,000 tourists daily. There are fine residential areas, modern shopping facilities and a quality school system. A major campus of the University of California is located immediately adjacent to the City, and eight other colleges are within a 30 -mile radius. Located 50 miles south of Los Angeles in Orange County, Newport Beach offers one of the finest climates in the United States. G7 Acres STREETS AND ALLEYS Miles Land 16,584 Improved 389 Bay 1,600 Unimproved 0 Ocean 14,894 State Highway 10 TOTAL 33,078 TOTAL 399 WATER FRONTAGE Miles DWELLING UNITS Upper Bay Frontage 13 January 1, 2006 42,352 Ocean 10 Occupancy factor per dwelling unit 2.18 Harbor 21 TOTAL 44 POPULATION DENSITY ASSESSED VALUATION Per Square Mile 3,218 TOTAL $32,194,902,544 Per Awn, 5.03 NEWPORT HARBOR Boats 9,900 EMPLOYEES Residential 1,230 Regular Full Time 819 Commercial Slips and Side Ties 2,330 Total "cludingPact Time) 1,289 Bay Moorings 1,235 Newport Beach is one of Southern California's most scenic and dynamic communities. It surrounds Newport Bay, well known for its picturesque islands and one of the greatest natural recreational boat harbors in the world, accommodating over 9,000 boats of all types docked within its 21 square mile harbor area. This bay area and the 23 miles of ocean beach offer outstanding fishing, swimming, surfing and aquatic sports activities. The City has a permanent population of approximately 80,000. During the summer months, the population grows to over 100,000 with 20,000 to 100,000 tourists daily. There are fine residential areas, modern shopping facilities and a quality school system. A major campus of the University of California is located immediately adjacent to the City, and eight other colleges are within a 30 -mile radius. Located 50 miles south of Los Angeles in Orange County, Newport Beach offers one of the finest climates in the United States. G7 REVENUE SUMMARY 2007.08 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Percent Actual Actual Actual Actual Estimated Proposed Increase Fund /Revenue Category Revenue Revenue Revenue Revenue Revenue Revenue (Decrease) GENERALFUND PROPERTYTAXES 39,474,865 43,631,829 56,254,917 63,608,570 70,493,414 73,083,537 3.67% TAXES OTHER THAN PROPERTY 32,985,528 35,790,936 34,993,699 38,676,046 39,591,655 41,371,520 4.50% LICENSES AND PERMITS 2,305,118 3,483,020 3,061,667 3,295,053 2,898,343 3,876,320 33.74% INTERGOVERNMENTAL 6,035,742 6,014,233 4,266,673 3,935,190 6,336,272 2,333,100 - 63.18% CHARGES FOR CURRENT SERVICES 11,099,872 11,899,279 13,063,134 13,098,105 13,473,234 13,701,298 1.59% FINES, FORFEITURES & PENALTIES 3,380,531 3,551,515 3,422,735 3,839,924 3,580,338 3,593,500 0.37% USE OF MONEY AND PROPERTY 7,328.014 6,397,127 7,093,909 7,448,396 8,281,363 8,489,867 2.52% OTHER REVENUE 1,173,647 216,898 1,138,281 1,645,515 2,841,354 515,800 - 81.85% TOTAL GENERAL FUND 103,783,317 110,984,837 123,295,015 135,546,799 147,495,973 146,964,943 -0.36% ASSET FORFEITURE FUND INTERGOVERNMENTAL 47,795 59,652 233,471 95,697 40,000 40,000 0.00% USE OF MONEY AND PROPERTY 13,556 1,638 3,750 1,639 5,000 5,250 5.00% OTHER REVENUE 0 0 0 0 0 0 0.00% TOTAL FORFEITURE FUND 61,351 61,290 237,221 97,336 45,000 45,250 0.56% SLESF - COPS FUND INTERGOVERNMENTAL 144,049 119,171 118,685 120,222 162,501 140,000 - 13.85% USE OF MONEY AND PROPERTY 295 240 972 1,328 2,000 2,100 5.00% TOTAL SLESF - COPS FUND 144,344 119,411 119,658 121,550 164,501 142,100 - 13.62% JAG FUND (FORMERLY LLEBG) INTERGOVERNMENTAL 37,847 39,448 24,569 0 7,422 0 - 100.00% USE OF MONEY AND PROPERTY 933 2,975 414 0 0 0 0.00% TOTAL LLEBG FUND 38,780 42,423 24,983 0 7,422 0 - 100.00% CDBG FUND INTERGOVERNMENTAL 3,235,483 0 559,698 532,350 717,037 447,432 - 37.60% USE OF MONEY AND PROPERTY 28,085 5,598 7,905 15,789 1,500 0 - 100.00% TOTAL CDBG FUND 3,263,568 5,598 567,603 548,139 718,537 447,432 - 37.73% STATE GAS TAX FUND INTERGOVERNMENTAL 1,332,751 1,484,796 1,497,280 1,501,409 1,807,500 1,507,500 - 16.60% USE OF MONEY AND PROPERTY 166,499 20,735 68,658 87,681 140,000 147,000 5.00% OTHER REVENUE 0 0 0 1,340 0 0 0.00% TOTAL GAS TAX FUND 1,499,250 1,505,531 1,565,938 1,590,430 1,947,500 1,654,500 - 15.04% TRAFFIC CONGESTION FUND INTERGOVERNMENTAL 192,176 0 0 266,503 699,791 0 - 100.00% USE OF MONEYAND PROPERTY 8,748 2,037 0 1,679 5,000 0 - 100.00% TOTAL TRAFFIC CONGESTN FUND 200.924 2,037 0 268,182 704,791 0 - 100.00% TIDELANDS FUND LICENSES, PERMITS AND FEES 1,039,967 1,230,464 1,276,362 1,327,560 1,260,700 1,291,525 2.45% INTERGOVERNMENTAL 18,333 18,333 0 0 0 0 0.00% CHARGES FOR SERVICES 56,422 38,560 42,400 37,260 68,960 40,000 - 42.00% FINES, FORFEITURES & PENALTIES 11,623 -514 -1,056 1,918 1,272 1,200 -5.66% USE OF MONEY AND PROPERTY 5,374,101 5,696,396 6,224,026 7,482,416 6,927,105 8,158,238 17.77% OTHER REVENUE 55,728 -2,384 0 2,724 0 0 0.00% TOTAL TIDELANDS FUND 6,566,174 6,980,855 7,541,732 8,851,878 8,258,037 9,490,963 14.93% CONTRIBUTIONS FUND INTERGOVERNMENTAL 314,433 1,308,217 4,673,822 2,536,633 3,710,538 654,320 -20.61% USE OF MONEY AND PROPERTY 0 0 0 106,906 17,299 18,164 0.00% OTHER REVENUE 54,625 50,000 0 219,144 50,554 540,000 0.00% TOTAL CONTRIBUTIONS FUND 369,058 1,358,217 4,673,822 2,862,683 3,778,391 1,212,484 -67.91% CIRCULATION AND TRANS FUND LICENSE, PERMITS AND FEES 855,301 681,046 411,229 893,083 300;000 300,000 0.00% USE OF MONEY AND PROPERTY 249,237 27,585 88,169 92,022 148,000 155,400 5.00% OTHER REVENUE 0 0 0 0 24,450 0 - 100.00% TOTAL CIRCULATION FUND 1,104,538 708,631 499,397 985.105 472,450 455.400 -3,61% BUILDING EXCISE TAX FUND LICENSES, PERMITS AND FEES 197,133 210,086 218,976 193,266 150,000 150,000 0.00% USE OF MONEY AND PROPERTY 12,405 1,692 7,579 9,657 10,000 10,500 5,00% OTHER REVENUE 0 0 0 0 0 0 0.00% TOTAL BET FUND 209.538 211,778 226.556 202.923 160.000 160.500 0,31% 1181 REVENUE SUMMARY 2007 -08 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Percent Actual Actual Actual Actual Estimated Proposed Increase Fund /Revenue Category Revenue Revenue Revenue Revenue Revenue Revenue (Decrease) MEASURE "M "FUND INTERGOVERNMENTAL 1,010,077 1,300,089 1,595,550 1,528,971 1,911,168 1,700,000 - 11.05% USE OF MONEY AND PROPERTY 89,002 12,192 43,788 78,218 56,928 59,774 5.00% OTHER REVENUE 0 0 0 0 0 0 0.00% TOTAL MEASURE "M" FUND 1,099,079 1,312,281 1,639,338 1,607,189 1,968,096 1,759,774 - 10.58% BIKES 8 TRAILWAYS FUND INTERGOVERNMENTAL 0 0 0 0 0 0 0.00% USE OF MONEY AND PROPERTY 3,878 309 0 0 0 0 0.00% TOTAL BIKES B TRAILWAYS FUND 3,878 309 0 0 0 0 0.00% AHRPFUND INTERGOVERNMENTAL 366,441 690,543 125 166 1,393,500 653,000 - 53.14% TOTAL ALRP FUND 366,441 690,543 125 166 1,393,500 653,000 - 53.14% AIR QUALITY MGMT FUND INTERGOVERNMENTAL 123,573 144,692 111,940 99,719 100,000 100,000 0.00% USE OF MONEY AND PROPERTY 0 128 1,146 3,224 4,000 4,200 5.00% OTHER REVENUE 0 0 0 0 0 0 0.00% TOTAL AOMD FUND 123,573 144,820 113,086 102,943 104,000 104,200 0.19% ENVIRONMENTAL LIABILITY FUND OTHER REVENUE 414,803 332,813 358,247 453,140 370,000 392,000 5.95% USE OF MONEY AND PROPERTY 79,954 10,135 39,112 53,524 76;000 79,800 5.00% TOTAL ENVIRONMENTAL LIAB FD 494,757 342,948 397,360 506,664 446,000 471,800 5.78% OIL SPILL REMEDIATION FUND TOTAL OTHER REVENUE 0 0 0 0 0 0 0.00% USE OF MONEY AND PROPERTY 76,455 7,007 17,895 10,680 5,000 5,250 5.00% TOTAL OIL SPILL FUND 76,455 7,007 17,895 10,680 5,000 5,250 5.00% NEWPORT ANNEXATION FUND INTERGOVERNMENTAL 0 5,000,000 0 3,000,000 0 0 0.00% USE OF MONEY AND PROPERTY 458,964 88,316 327,116 436,123 718,000 753,900 5.00% TOTAL ANNEXATION FUND 458,964 5,088,316 327,116 3,436,123 718,000 753,900 5.00% ASSESSMENT DISTRICT PROJECTS OTHER REVENUE 2,127,087 260,457 14,779,013 0 0 0 0.00% USE OF MONEY AND PROPERTY 0 5,501 76,768 111,497 13,724 14,410 5.00% TOTAL ASSESSMENT DISTRICT FUND 2,127,087 265,958 14,855,781 111,497 13,724 14,410 5.00% CIOSA FUND OTHER REVENUE 1,981 0 0 0 0 0 0.00% USE OF MONEY AND PROPERTY 218,056 26,551 75,339 65,052 120,000 126,000 5.00% TOTAL CIOSA FUND 220,037 26,551 75,339 65,052 120,000 126,000 5.00% BONITA CANYON DEV. FUND OTHER REVENUE 0 0 0 0 0 0 0.00% USE OF MONEY AND PROPERTY 194,454 65,517 7,147 4,166 4,000 0 - 100.00% TOTAL BONITA CANYON DEV. FD. 194,454 65,517 7,147 4,166 4,000 0 -100.00% MARINERS LIBRARY INTERGOVERNMENTAL 0 144,685 0 959,208 2,076,846 0 - 100.00% OTHER REVENUE 1,069,732 38,269 302,988 32,652 0 0 0.00% USE OF MONEY AND PROPERTY 0 5,338 18,536 0 23,743 0 -100,00% TOTAL MARINERS LIBRARY FUND 1,069,732 188,292 321,524 991,860 2,100,589 0 - 100.00% FIRE STATION #7 INTERGOVERNMENTAL 0 0 2,500,000 0 1,600,000 0 - 100.00% OTHER REVENUE 0 0 0 0 0 0 0.00% USE OF MONEY AND PROPERTY 0 0 0 0 0 0 0.00% TOTAL FIRE STATION 97 FD. 0 0 2,500,000 0 1,600,000 0 - 100.00% BACK BAY SCIENCE CENTER INTERGOVERNMENTAL 0 0 76,901 267,088 3,449,624 0 - 100.00% OTHER REVENUE 0 0 0 25,000 1,100,000 0 - 100.00% USE OF MONEY AND PROPERTY 0 0 960 0 0 0 0.00% TOTAL BACK BAY SCIENCE CENTER 0 0 77,860 292,088 4,549,624 0 -100.00% BAR COMMUNITY CENTER INTERGOVERNMENTAL 0 0 0 0 100,859 0 - 100.00% OTHER REVENUE 0 0 0 0 0 0 0.00% USE OF MONEY AND PROPERTY 0 0 0 0 0 0 0.00% TOTAL SAL COMMUNITY CENTER 0 0 0 0 100,859 0 -10000% 11 REVENUE SUMMARY 2007 -08 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Percent Actual Actual Actual Actual Estimated Proposed Increase FundlRevenue Category Revenue Revenue Revenue Revenue Revenue Revenue (Decrease) MISC SAH PROJECTS INTERGOVERNMENTAL 0 0 0 0 650,000 7,528,000 1058.15% OTHER REVENUE 0 0 0 0 0 0 0.00% USE OF MONEY AND PROPERTY D 0 D 0 0 0 0.00% TOTAL MISC SAL PROJECTS 0 0 0 0 650,000 7,528,000 1058.15% WATER ENTERPRISE FUND LICENSES, PERMITS AND FEES 0 0 0 0 0 0 0.00% INTERGOVERNMENTAL 0 1,608,507 787,523 1,779,557 0 0 0.00% CHARGES FOR SERVICES 16,228,130 16,655,234 16,677,054 16,098,693 17,261,743 17,932,085 3.88% USE OF MONEY AND PROPERTY 837,322 128,259 304,820 325,637 650,000 682,500 5.00% OTHER REVENUE 261,152 - 70,877 108,620 - 177,137 37,810 16,000 - 57.68% TOTAL WATER FUND 17,326,604 18,321,123 17,878,017 18,026,750 17,949,553 18,630,585 3.79% WASTEWATER ENTERPRISE FUND INTERGOVERNMENTAL 0 105 664 152,790 0 0 0.00% CHARGES FOR SERVICES 2,729,781 2,858,223 2,882,723 3,129,915 3,314,948 3,739,330 12.80% USE OF MONEY AND PROPERTY 138,873 16,986 58,385 56,280 140,000 147,000 5.00% OTHER REVENUE .39,160 - 312,876 17,285 - 33,509 16,895 3,184 - 81.15% TOTAL WASTEWATER FUND 2,907,814 2,562,438 2,959,058 3,305,476 3,471,843 3,889,514 12.03% INSURANCE RESERVE FUND WORKERS'COMP PREMIUM 3,199,425 3,199,597 3,199,597 3,199,424 3,199,421 3,199,421 0.00% GENERAL LIABILITY PREMIUM 1,827,779 1,828,697 1,829,081 1,828,697 3,328,697 3,328,697 0.00% DISABILITY INSURANCE PREMIUM 0 0 0 172 0 0 0.00% OTHER REVENUE 328,917 37,094 145,801 214,767 225,000 236,631 5.17% TOTAL INSURANCE FUND 5,356,121 5,065;388 5,174,479 5,243,060 6,753,118 6,764,749 0.17% RETIREE MEDICAL FUND CHARGES FOR SERVICES 1,532,299 1,629,794 1,482,274 1,383,791 420,000 1,470,500 250.12% USE OF MONEY AND PROPERTY 72,743 10,160 0 104,321 212,500 223,125 5.00% TOTAL RETIREE MEDICAL FUND 1,605,042 1,639,954 1,482,274 1,488,112 632,500 1,693,625 167.77% COMPENSATED ABSENCE FUND CHARGES FOR SERVICES 1,455,909 1,522,614 1,576,627 1,583,803 2,031,897 2,104,243 3.56% USE OF MONEY AND PROPERTY 61,062 7,873 28,914 26,708 40,075 42,079 5.00% TOTAL COMP. ABSENCE FUND 1,516,971 1,530,487 1,605,542 1,610,511 2,071,972 2,146,322 3.59% EQUIPMENT MAINTENANCE FUND INTERGOVERNMENTAL 0 75 0 0 0 0 0.00% EQUIPMENT MAINTENANCE 1,523,806 1,704,155 1,819,912 1,779,264 1,989,590 2,050,000 3.04% EQUIPMENT REPLACEMENT 2,696,264 2,743,083 2,922,406 2,380,011 2,515,148 2,700,000 7.35% OTHER REVENUE 787,024 172,644 354,518 368,613 373,937 372,630 -0.35% TOTAL EQUIPMENT FUND 5,007,094 4,619,957 5,096,836 4,527,888 4,878,675 5,122,630 5.00% PD EQUIPMENT MAINTENANCE FUND EQUIPMENT REPLACEMENT 0 0 0 611,916 878,570 878,570 0.00% OTHER REVENUE 0 0 0 40,361 101,018 81,750 - 19.07% TOTAL PD EQUIPMENT FUND 0 0 0 652,277 979,588 960,320 -1.97% ACKERMANFUND USE OF MONEY AND PROPERTY 11,013 4,878 19,895 25,121 40,000 42,000 5.00% OTHER REVENUE 185,000 1,981,286 0 0 0 0 0.00% TOTAL ACKERMAN TRUST FUND 196,013 1,986,164 19,895 25,121 40,000 42,000 5.00% NEWPORT BAY DREDGING FUND USE OF MONEY AND PROPERTY 132 17 68,718 99,719 160,000 168,000 5.00% OTHER REVENUES 0 0 3,854,000 0 0 0 0.00% TOTAL BACK BAY DREDGING 132 17 3,922,718 99,719 160,000 168,000 N/A TOTALALLFUNDS 157,391,090 165,838,678 197,223,315 193,182,367 214,463,243 211,407,651 -1.42% Less: Internal Premiums (12,235,482) (12,627,940) (12,829,898) (12,767,078) (14,363,323) (15,731,431) N/A TOTAL ALL CITY FUNDS, NET OF INTERNAL PREMIUMS 145,155,608 153,210,738 184,393,418 180,415,289 200,099,920 195,676,220 -2.21% 12 EXPENDITURES BY FUND 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 % of Total Actual Actual Actual Actual Estimated Proposed Operating Function and Activities Expenditures Expenditures Expenditures Expenditures Expenditures Expentlitures Budget GENERAL FUND BUDGET General Government 30,385,765 32,448,435 34,492,665 38,172,037 40,122,056 41,463,875 23.37% City Council 1,327,729 973,213 1,544,885 1,452,411 1,779,010 1,187,697 1.04% City Clerk 355,940 294,781 375,456 424,080 511,109 382,780 0.30% City Manager 994,278 1,956,574 1,038,657 1,491,403 1,732,695 1,357,272 1.01% Human Resources 1,146,646 1,165,004 1,288,208 1,555,731 1,685,036 1,831,929 0.98% City Attorney 868,117 1,071,588 970,473 1,020,120 1,052,680 1,062,509 0.61% Administrative Services 4,996,566 5,278,946 5,655,488 6,587,456 7,660,214 7,449,877 4.46% Total General Government 9,689,276 10,740,106 10,873,169 12,531,201 14,420,744 13,272,064 8.40% Public Safely Police Department 30,385,765 32,448,435 34,492,665 38,172,037 40,122,056 41,463,875 23.37% Fire Department 22,014,685 24,029,946 24,601,409 26;821,147 29,416,355 29,587,854 17.13% Total Public Safely 52,400,450 56,478,381 59,094,074. 64,993,194 69,538,411 71,051,729 40.50% Community Development 1,078,207 1,178,187 1,189,389 1,780,139 1,985,898 1,930,168 1.16% City Manager 357,693 476,286 526,477 510,540 647,131 663,325 0.28% Planning 2,447,129 2,217,737 2,181,631 3,294,195 3,143,021 2,753,070 1.83% Building 2,815,996 3,065,671 3,292,619 3,801,161 3,757,477 3,774,923 2.19% Total Community Development 5,263,125 5,759,694 6,000,727 7,605,896 7,547,629 7,191,318 4.16°/, Public Works 1,243,300 1,200,000 1,390,453 1,200,000 1,200,000 1,200,000 0.70% General Services 15,416,692 16,741,145 18,315,517 19,553,413 21,790,907 22,684,331 12.69% Public Works 3,503,545 3,754,009 4,056,923 4,561,179 5,138,911 5,082,383 2.99% Utilities 1,343,414 1,024,651 1,095,695 1,188,143 1,149,526 1,215,731 0.67% Total Public Works 20,263,651 21,519,804 23,468,135 25,302,735 28,079,344 28,982,445 16.35% Community Services 14,818,855 15,677,816 32,644,853 23,865,851 62,671,535 30,954,398 36.50% City Council - Centennial - - 94,036 601,375 509,642 - 0.30% Recreation & Sr. Services 3,007,581 3,358,550 3,895,533 4,529,417 5,364,908 6,060,219 3.12% Libraries B Arts 5,168,319 5,090,337 5,172,456 5,819,796 6,393,912 5,921,538 3.72% Total Community Services 8,175,900 8,448,888 9,162025 10,950,588 12,268,462 11,981,757 7.141/6 General Fund Debt Service - - - - - - 0.00% Total General Fund Op. Budget 95,792,402 102,946,873 108,598,130 121,383,604 131,854,590 132,479,313 76.79% General Fund CIPS 4,379,362 4,594,096 5,790,097 6,505,345 14,801,081 8,808,950 8.62% Total General Fund Budget 100,171,764 107,540,969 114,388,227 127,888,949 146,655,671 141,288,263 85.41% ENTERPRISE FUNDS Water - Operations 11,372,485 13,667,812 12,930,701 13,431,054 15,112,742 15,096,939 8.80% Water -CIP 4,935,134 5,007,460 6,178,645 4,394,566 6,173,554 2,039,000 3.60% Water - Debt Service 1,650,573 1,622,958 1,6461550 1,592,119 1,589,000 1,618,833 0.93% Wastewater - Operations 1,893,290 2,221,135 2,188,180 2,241,047 2,682,210 2,639,889 1.56% Wastewater- CIP 1,635,551 687,808 1,269,143 1,212,711 2,468,772 984,000 1.44% Total Enterprise Funds 21 A87,033 23,207,173 24,213,218 22,871,497 28,026,278 22,378,661 16.32% INTERNAL SERVICE FUNDS Insurance Reserve 8,776,529 6,228,971 8,574,542 5,340,252 5,388,689 5,446,500 3.14% Equipment Fund- Operations 3,824,754 3,687,090 3,565,439 4,228,344 5,843,668 3,954,068 3.40% Equipment Fund - CIP 111,346 69,336 93,054 348,461 101,332 - 0.06% Equipment Fund - Debt Service 831,589 459,776 27,849 268,316 119,568 49,820 0.07% PD Equipment Replacement - - - 413,133 781,664 514,000 0.46% Compensated Absences 1,807,921 918,644 1,579,160 2,934,444 1,206,000 1,206,000 0.70% Retiree Medical 1,132.143 1,199,235 1,735,921 2,326,967 1,974,956 3,133,000 1.15% Total Internal Service Funds 16,484,282 12,563,052 15,575,966 15,859,917 15,416,077 14,303,388 8.98% OTHERFUNDS Police Grants 309,680 318,639 382,778 268,885 216,759 198,697 0.13% CDBG - Operations 150,623 149,981 136,690 187,327 135,692 129,000 0.08% CDBG - Debt Service 72,846 183,581 186,301 189,514 191,224 193,482 0.11% Tidelands - Harbor Resources 1,078,207 1,178,187 1,189,389 1,780,139 1,985,898 1,930,168 1.16% Tidelands - Oil and Gas 357,693 365,699 419,482 597,383 478,514 601,259 0.28% Tidelands - Debt Service 237,062 237,062 237,062 237,062 237,062 237,062 0.14% AOMD 130,641 96,003 66,297 28,350 26,415 26,415 0.02% Environmental Liability 195,340 154,389 273,392 176,764 90,000 90,000 0.05% Newport Annexation - Debt Service 1,243,300 1,200,000 1,390,453 1,200,000 1,200,000 1,200,000 0.70% Library - Debt Service 565,925 567,935 564,514 569,875 567,780 569,730 0.33% CIOSA Debt Service - - - - - 270,000 Ackerman Fund 128,500 1,200,272 102,543 5,575 24,482 24,400 0.01% All Other CIP 10,349,038 10,026,068 27,695,953 17,824,977 57,517,709 25,484,185 33.50% Total Other Funds 14,818,855 15,677,816 32,644,853 23,865,851 62,671,535 30,954,398 36.50% TOTAL OPERATING BUDGET 131,551,503 138,604,242 145,795,373 159,400,154 171,707,113 171,608,575 100.00% TOTAL CIP 21,410,431 20,384,768 41,026,891 30,286,060 81,062,448 37,316,135 TOTAL CITY BUDGET 152,961,934 158,989,010 186,822,264 189,686,214 252,769,561 208,924,710 LESS: INTERNAL CHARGES (12,235,482) (12,627,940) (12,829,898) (12,767,078) (14,363,323) (15,731,431) TOTAL BUDGET NET OF INTERNAL CHARGES 140,726,452 146,361,070 173,992,366 176,919,136 238,406,238 193,193,279 13 DEPARTMENT SERVICES City Council City Clerk City Manager Human Resources City Attorney Administrative Services Police Fire Planning Building General Services Library Services (incl Cultural Arts) Recreation and Sr. Services Public Works Utilities INTERNAL SERVICES Insurance Reserve Equipment Maint. & Replacement PD Equipment Replacement Compensated Absence Retiree Medical DEBT SERVICE Office Equipment Leases CDBG Balboa Village Loan Balboa Yacht Basin Construction Loan Circulation and Transportation Newport Annexation Central Library Construction CIOSA Groundwater Improvement Bonds Railing Stock Leases OTHER ACTIVITIES Narcotic Asset Forfeiture BLEST LLEBG AQMD Environmental Liability Fund Ackerman Donation Capital Improvement Projects Total Budget Less: Internal Charges Total Budget Net of Internal Charges OPERATING BUDGET Salaries and Benefits Maintenance and Operator Capital Outlay Debt Service Total Operating Budget CAPITAL IMPROVEMENTS TOTAL BUDGET 14 2007 -08 EXPENDITURES BY DEPARTMENT Maintenance Salaries& %of and %of Capital %of Debt Total %of Benefits Total Operation Total Outlay Total Service Budget Total 244,778 0.23% 935,919 1.70% 7,000 0.18% - 1,187,697 0.57% 327,976 0.30% 54,804 0.10% - 0.00% - 382,780 0.18% 2,709,096 2.50% 1,203,669 2.19% 38,000 0.96% - 3,950,765 1.89% 1,160,269 1.07% 663,660 1.21% 8,000 0.20% - 1,831,929 0.88% 820,204 0.76% 238,305 0.43% 4,000 0.10% - 1,062,509 0.51% 5,848,508 5.39% 1,208,450 2.20% 392,919 9.90% - 7,449,877 3.57% 34,357,562 31.66% 6,693.543 12.17% 412,770 10.40% - 41,463.875 19.85% 24,629,190 22.69% 4,656,329 8.47% 302,335 7,62% - 29,587,854 14.16% 2,279,203 2.10% 545,117 0.99% 57,750 1.45% - 2,882,070 1.38% 3,439,822 117% 308,601 0.56% 26,500 0.67% - 3,774,923 1.81% 9,867,671 9.09% 12,754,560 23.20% 62,100 1,56% - 22,684,331 10.86% 4,333,696 199% 1,463,642 2.66% 124,200 3.13% - 5,921,538 2.83% 3,018,750 2.78% 2,963,719 5.39% 77,750 1,96% - 6,060,219 2.90% 4,180,147 185% 871,136 1.58% 31,100 0.78% - 5,082,383 2.43% 5,579,606 5.14% 13,903,562 25.29% 70,650 1.78% - 19,553,818 9.36% - 0.00% 5,446,500 9.91% - 0.00% - 5,446,500 2.61% 1,358,079 1.25% 677,789 1.23% 1,918,200 48.32% - 3,954,068 1.89% - 0.00% 94,000 0.17% 420,000 10.58% - 514,000 0.25% 1,206,000 1.11% - 0.00% - 0.00% - 1,206,000 0.58% 3,058,000 2.82% 75,000 0.14% - 0.00% - 3,133,000 1.50% - 0.00% - 0.00% - 0.00% - - 0.00% - 0.00% - 0.00% - 0.00% 193,482 193,482 0.09% - 0.00% - 0.00% - 0.00% 237,062 237,062 0.11% - 0.00% - 0.00% - 0.00% - - 0.00% - 0.00% - 0.00% - 0.00% 1,200,000 1,200,000 0.57% - 0.00% 5,250 0.01% - 0.00% 564,480 569,730 0.27% - 0.00% - 0.00% - 0.00% 270,000 270,000 0.13% - 0.00% 5,000 0.01% - 0.00% 1,613,833 1,618,833 0.77% - 0.00% - 0.00% - 0.00% 49,820 49,820 0.02% - 0.00% 61,907 0.11% 16,790 0.42% - 78,697 0.04% 109,721 0.10% 10,279 0.02% - 0.00% - 120,000 0.06% - 0.00% - 0.00% - 0.00% - - 0.00% - 0.00% 26,415 0.05% - 0.00% - 26,415 0.01% - 0.00% 90,000 0.16% - 0.00% - 90,000 0.04% - 0.00% 24,400 0.04% - 0.00% - 24,400 0.01% - 0.00% - 0.00% - 0.00% - 37,316,135 17.86% 108,528,278 100.00% 54,981,556 100.00% 3,970,064 100% 4,128,677 208,924,710 100.00% (6,774,164) (8,957,267) - - (15,731,431) 101,754,114 46,024,289 3,970,064 4,128,677 193,193,279 %OF % %OF %OF BUDGET TOTAL GENERAL BUDGET TOTAL TOTAL TYPE BUDGET FUND TYPE BUDGET 108,528,278 63.24% 51.95% 96,687,165 72.98% 68.43% 54,981,556 32.04% 26.32% 34,258,074 25.86% 24.25% 3,970,064 2.31% 1.90% 1,534,074 1.16% 1.09% 4,128,677 2.41% 1.98% - 0.00% 0.00% 171,608,575 100.00% 82.14% 37,316,135 100.00% 17.86% 208,924,710 100.00% 100.00% 132,479,313 100.00% 93.77% 8,808,950 100.00% 6.23% 141,288,263 100.00% 100.00% Historical Capital Projects Spending (dollars in thousands) 45,000 42,500 40,000 37,500 35,000 32,500 30,000 27,500 25,000 22,500 20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 Annual Totals 26,383 21,410 20,385 41,027 30,286 66,333 37,316 ■General Fund Projects 0 Special Revenue & Cooperative Projects ■Special Assessment Projects ❑ Enterprise Fund Projects ■ Internal Service Fund O 9 O O 9 O 9 O N f7 > f0 n 2001 -02 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Actual Actual Actual Estimated Projected General Fund Projects General Fund 7,656 3,625 4,594 5,790 6,505 14,801 8,809 Special Revenue, Cooperative Projects & Others CDBG 526 1,826 721 59 704 77 110 Gas Tax 2,107 1,622 1,549 1,476 2,231 1,851 4,114 Tidelands 958 858 910 887 942 2,285 2,354 Contributions 166 834 1,857 2,464 1,837 11,301 3,317 Circulation & Transportation 247 957 1,122 508 1,616 2,443 1,273 Building Excise Tax 640 180 154 170 297 277 340 Measure M 972 985 1,248 1,044 1,607 2,630 3,593 Bike & Trailways - 58 - - - - - AHRP Fund 527 679 85 - 72 1,328 653 Environmental Liability - - - - - 635 Traffic Congestion Relief 539 363 85 - 255 701 176 American Trader Oil Spill Remediation 3,319 564 609 54 802 121 - Newport Coast Annexation - 32 7 375 850 6,157 - Mariners Library - 90 299 1,785 4,219 472 - Fire Station #7 - - - 4,402 575 7,089 - City Hall - - - - 417 7 - Back Bay Science Center - - - - 450 6,575 - SAH Community Center - - - - 101 - - Misc SAH Projects - - - - 102 236 7,841 Special Assessment Projects Assessment Districts 1,670 1,697 782 12,373 504 599 - CIOSA Development 148 295 516 1,245 225 1,079 Bonita Canyon Development 1,343 63 82 856 22 93 - Enterprise Fund Projects Water 4,447 4,935 5,008 6,179 4,395 4,924 2,039 Sewer 1,073 1,636 688 1,269 1,213 2,269 984 Internal Service Fund Equipment Maintenance 45 111 69 93 348 101 - 45,000 42,500 40,000 37,500 35,000 32,500 30,000 27,500 25,000 22,500 20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 Annual Totals 26,383 21,410 20,385 41,027 30,286 66,333 37,316 ■General Fund Projects 0 Special Revenue & Cooperative Projects ■Special Assessment Projects ❑ Enterprise Fund Projects ■ Internal Service Fund O 9 O O 9 O 9 O N f7 > f0 n OPERATING EXPENDITURES - ALL FUNDS Acct Code Activity - Function Council 0100 City Clerk 0200 City Mgr. 0300 HR 0400 City Atty. 0500 Admin Svc. 0600 Police 1800 7000 SALARIES - MISC 238,949 1,783,202 767,571 394,493 4,031,474 5,785,501 7010 SALARIES -SAFETY 13,580,667 7020 SALARIES - PERM PART TIME &TEMP 50,000 230,024 103,215 257,087 233,511 744,171 7040 OVERTIME, MISC 1,221 21,604 2,273 17,017 261,932 7041 OVERTIME, SAFETY 1,011,487 7042 OVERTIME, PLANNED 7043 OVERTIME, VACATION RELIEF 7044 OVERTIME, UNCONTROLLED 7059 PACKER/CALLBACK/STANDBY PAY 7060 COPTER,TILLER, HAZ MAT & BILINGUAL 1,800 9,000 38,400 7062 NIGHT DIFF, MISC 4,500 49,947 7063 CERTIFICATION PAY & LONGEVITY PAY 59,638 7070 SCHOLASTIC ACHIEVEMENT 536,336 7072 HOLIDAY PAY, MISC & SAFETY 890,978 7085 UNEMPLOYMENT &TERMINATION PAY 7088 PAID FLEX/SPILLOVER PAY 7100 COUNCIL ALLOWANCES 102,407 7210 HEALTH /DENTAL /VISION 72,484 31,064 222,628 93,193 31,064 579,869 2,627,352 7226 RETIREE INSURANCE - MERP 9,285 2,028 8,112 2,892 1,200 13,350 44,947 7250 SALARY SAVINGS /REIMBURSEMENT 80 85,000 7251 RETIREE INSURANCE 7270 OTHER MISC BENEFITS 5,400 7290 LIFE INSURANCE 342 2,421 994 342 6,238 27,084 7295 EMPLOYEE ASSISTANCE 73 524 219 73 1,364 5,846 7370 WORKERS' COMP, MISC 3,524 37,957 6,368 9,550 88,609 82,890 7371 WORKERS' COMP, SAFETY 1,072,348 7373 COMPENSATED ABSENCES 8,363 62,412 26.,865 13,807 141,102 678,171 7425 MEDICARE FRINGES 1,485 3,465 28,177 12,652 9,448 52,878 253,702 7439 PERS EMPLOYEE CNTRBN -MISC 2,899 16,726 126,412 61,081 43,902 287,334 446,040 7440 PER EMPLOYER CONTRBN -MISC 3,B51 22,221 167,937 81,145 58,323 381,596 592,558 7441 IPERS EMPLOYER CNTRBN -SAFE 4,285,535 7442 PERS EMPLOYEE CNTRBN -SAFE 1,355,858 7460 RETIREMENT PART TIMEFFEMP 2,287 7,786 915 5,167 11,174 SUBTOTAL SALARY & BENEFITS 244,7781 327,9761 2,709,0961 1,160,2691 820,2041 5,W,5091 34,357,562 8010 ADVERT & PUB RELATIONS 4,000 10,000 5,000 39,000 18,885 8020 AUTOMOTIVE SERVICE 5,650 7,350 328,203 8022 EQUIPMENT MAINTENANCE 22,810 38,021 8023 AUTOMOTIVE PURCHASE 18,000 75,000 8024 EQUIPMENT REPLACEMENT 20,781 29,733 843,570 8030 MAINT & REPAIR - EQUIP 150 18,939 10,036 9,982 900 409,959 83,850 8040 MAINT & REPAIR - FACILITIES 20,320 35,000 200,228 8050 PSTGE,FREIGHT,EXPRESS NOC 1,000 3,500 10,800 11,500 2,500 42,394 60,815 8060 PUBLICATIONS & DUES NOC 50,000 650 10,240 3,500 2,050 13,450 23,162 8070 RENTAL/PROP & EQUIP NOC 5,700 7,280 52,350 8080 SERVICES -PROF & TECH NOC 305,000 8,400 872,497 454,000 200,650 200,132 587,488 80802 SERVICES -OTHER SPECIAL 80805 SERVICES -TREE RELATED 8081 SERVICES - JANITORIAL 11,300 97,751 8091 SERVICES - COMPUTER CONSULT 73,297 8100 TRAVEL & MEETINGS NOC 9,000 4,100 12,200 7,500 2,000 20,300 10,770 8105 TRAINING 3,000 9,000 10,500 3,500 34,500 200,233 8106 TRAINING, POST 94,750 8107 TRAINING, CITY WIDE 59,000 8112 UTILITIES- TELEPHONE 960 11,600 2,660 2,700 168,140 213,517 8114 UTILITIES - NATURAL GAS 500 3,800 8116 UTILITIES - ELECTRICITY 54,600 168,000 8117 UTILITIES - ELCTRIC VEH PGM 8118 UTILITIES - WATER 5,000 5,000 8140 SUPPLIES- OFFICE NOC 4,000 7,000 29,000 14,018 6,000 62,966 65,285 8142 SUPPLIES- COMPUTER/COPY MACHINE 12,175 41,500 8145 SUPPLIES -AUTO PARTS EXPNS 77,000 8148 SUPPLS -CHKS /INVOICES /FRMS 6,800 8150 SUPPLIES- JANITORIAL NOC 1,500 100 13,000 8155 WASTEWATER/SEWER PROGRAMS 8156 WELLS & STATION MAINTENANCE 8160 MAINT & REPAIR MATRLS NOC 600 31,468 4,700 20,000 8165 MAINT- IRRIGATION REPAIR 8166 MAINT - STORM DRAINS 8170 MAINT - BEACH CLEANING 40,000 8173 MAINT - BLDG /PLYGRND EQ RPR 8176 MAINT - TRAFFIC CONTROL Qy Acct Code Fire 2300 Planning 2700 Building 2900 Gen. Svcs. 3100 Library 4000 Rec &Sr Svc 4500 Pub. Works 5000 Utilities 5900 Internal Svc 6000 Other Activities Total 7000 1,010,223 1,609,511 2,392,104 6,223,509 2,348,494 1,592,805 3,012,713 3475,120 901,390 35,567,059 7010 11,013,488 24,594,155 7020 1,252,361 9,052 95,102 31,543 912,426 674,063 98,546 220,007 4,911,108 7040 49,704 47,007 427,033 8,788 9,037 6,476 174,742 17,796 1,044,630 7041 1,011,487 7042 519,060 - - - - _ 519,060 7043 1,478,814 1,478,814 7044 883,157 883,157 7059 80,797 85,997 85,712 1,106 253,612 7060 18,396 5,400 1,800 74,796 7062 150 10,074 475 2,325 67,471 7063 123,705 35,750 14,650 990 2,432 25,700 6,500 269,365 7070 358,934 - - - _ 895,270 7072 281,951 1,172929 7085 778,875 778,875 7088 376,875 376,875 7100 102,407 7210 1,584,284 238,160 300,289 1,159,738 414,192 279,580 341,708 553,982 155,322 8,684,909 7226 21,528 5,700 4,908 18,540 3,216 1,926 5,052 10,194 648 153,526 7250 8,500 300,000 109,721 316,301 7257 2,808,250 2,808,250 7270 39,125 44,525 7290 17,353 2,535 3,285 12,016 4,140 2,829 3,760 5,919 1,676 90,934 7295 3,727 560 706 2,728 974 658 804 1,303 365 19,924 7370 23,449 24,714 49,139 590,560 61,170 50,917 69,074 286,394 84,373 1,468,688 7371 658,386 1,730,734 7373 420,830 56,333 83,724 217,823 80,444 55,748 105,445 121,629 31,549 2,104,245 7425 151,466 20,102 30,735 64,427 43,442 31,301 38,991 37,799 10,232 790,302 7439 71,656 112,666 170,328 437,416 182,845 129,137 211,060 245,461 63,184 2,608,147 7440 95,193 149,675 226,278 581,100 242,907 171,557 280,391 326,092 83,939 3,464,763 7441 3,398,976 - - _ 7,684,511 7442 1,075,368 2,431,226 7460 46,964 339 3,566 591 20,584 15,927 3,695 7,227 126,222 24,629,190 2,279,201 3,439,821 9,867,671 4,333,696 3,018,750 4,180,147 5,579,606 5,622,079 109,721 108,528,278 8010 57,300 9,600 1,000 17,000 4,000 14,460 180,245 8020 151,314 500 8,000 366,260 2,500 29,250 5,600 91,500 8,500 7,500 1,012,127 8022 459,165 3,309 39,702 1,084,762 6,725 54,143 39,436 358,434 32,328 2,138,835 8023 22,000 18,000 22,000 35,000 190,000 8024 1,084,523 1,830 32,379 1,165,149 5,492 58,830 30,505 392,120 17,156 8,347 3,690,415 8030 150,690 8,200 33,100 13,000 76,530 10,335 251,310 10,450 3,975 1,091,406 8040 248,059 156,359 86,620 70,000 39,950 856,536 8050 23,120 12,000 3,400 1,500 18,000 49,448 3,906 50,000 293,883 8060 26,148 12,000 4,450 1,250 2,810 3,005 8,100 6,550 1,500 168,865 8070 70,443 500 12,200 1,200 103,000 6,200 10,279 269,152 8080 417,223 70,000 102,000 3,462,298 43,164 1,724,262 115,097 246,800 156,000 11,050 8,976,061 80802 839,107 839,107 80805 180,000 180,000 8081 8,721 - - 280,840 75,225 126,963 - 1,500 _ - 602,300 8091 73,297 8100 57,830 19,000 5,600 6,050 9,050 8,000 8,000 5,250 4,275 188,925 8105 57,324 17,000 17,500 6,000 7,900 18,950 11,000 18,700 5,000 25,800 445,907 8106 94,750 8107 59,000 8112 59,908 750 11,045 20,300 10,285 13,474 18,400 33,800 3,000 570,539 8114 12,035 13,000 31,853 22,100 2,000 2,500 87,788 8116 89,169 167,500 156,828 114,500 1,594,775 23,000 2,368,372 8117 500 500 8118 21,300 661,000 14,454 32,303 19,900 28,000 786,957 8140 28,050 8,500 12,100 6,650 42,070 36,448 5,600 1,000 328,687 8142 62,477 5,870 122,022 8145 - - _ _ 348,500 - 425,500 8148 11,750 18,550 8150 22,950 61,417 22,100 34,578 1,500 157,145 8155 15,000 15,000 8156 204,000 204,000 8160 28,220 1,000 200,625 15,450 15,966 1,800 20,000 339,829 8165 28,093 28,093 8166 60,400 60,400 8170 17,600 465,000 522,600 8173 5,000 5,000 8176 6,500 6,500 17 OPERATING EXPENDITURES - ALL FUNDS Acct Code Activity - Function Council 0100 City Clerk 0200 City Mgr. 0300 Human Res 0400 City Atty. 0500 I Admin Svc. 0600 Police 1800 8178 ABLE EXPENSES 980,660 8179 ABLE - CAPITAL REPLACEMENT 8180 MAINT - OUTSIDE LABOR 8181 MAINT -COMP SOFTWARE 362,156 8182 MAINT -COMP HARDWARE 26,100 8183 MAINT - BACKFLOW & SCADA 8186 MAINT -SEWER 8190 WATER PROGRAMS 8200 SPECIAL DEPT SUPPLIES NOC 2,000 9,530 16,775 76,000 112,420 8202 COMPUTER SUPPLIES 1,500 8204 UNIFORM EXPENSE 2,380 135,000 8206 PRISONER CUSTODY EXPENSE 61,000 8208 PHOTO EXPENSE 20,000 8209 SHOOTING RANGE SUPPLIES 47,525 8210 S.W.A.T. SUPPLIES 34,604 8211 CANINE SUPPLIES 20,995 8212 STREET CLEANING EXPENSE 8214 CARPENTER SHOP SUPPLIES 8216 SAFETY EQUIPMENT 500 8220 SIGN SHOP SUPPLIES 8222 TRAFFIC SUPPLIES & CONTRACT 8224 ROADWAY PAINTS & BARS 8228 SIGNS AND SIGN MATERIALS 8232 SIGN INSTALLATION MATRLS 8234 IN SCTC D ES /H RBCDES /FN GCDES 8235 PLANT MATERIALS 8236 FERTILIZERITOP SOIL /AMENDMENTS 8238 ASPHALT /CONCRETE MATERIALS 8240 TOOLS, INSTRUMENTS, ETC 800 3,100 4,500 8250 SPECIAL DEPT EXPENSE NOC 512,450 2,000 1,938 65,033 8254 CITY GRANTS 25,000 8255 TUITION REIMBURSEMENT 50,000 8257 SISTER CITIES 8259 EMPLOYEE RIDESHARE FROM 8260 LIBRARY MATERIALS 8265 FIREWORKS 20,000 8295 IMPORTED WATER EXP - MWD 8296 IMPORTED WATER EXP - OCWD 8297 RECLAIMED WATER EXP -OCWD 8298 OTHER AGENCY FEES 8303 WATER CNSERV EDU & PUB REL 8330 SVC CHARGE - ADMINISTRATIVE 8340 GENERAL INSURANCE 319 655 1,837 1,230 13,532 1,466,096 8511 CITY SCHOLARSHIP TRUST 8512 HIGH TECH LIBRARY TRUST 8551 ECONOMIC DEVELOPMENT 8638 EXCESS INSURANCE N/A WORKERS' COMPENSATION N/A GENERAL LIABILITY SUBTOTAL MAINT. & OPERATION 935,9191 54,8041 11203,669 663,6601 238,3051 1,N8,4501 6,693,543 9000 OFFICE EQUIPMENT 12,000 6,000 4,000 44,119 9005 COMPUTER EQUIP /PC REPLACEMENT 7,000 2,000 267,200 290,535 9020 FITNESS EQUIPMENT 5,000 9100 ROLLING EQUIPMENT 9102 CONTRACTED SET UP 9106 EQUIPMENT RENOVATION 9200 SHOP EQUIPMENT 2,500 9300 EQUIPMENT, N.O.C. 19,000 77,000 102,596 9400 OFFICE FURNITURE /FIXTURES 7,000 2,100 14,639 SUBTOTAL CAPITAL OUTLAY 7,000 38,000 8,000 4,000 392,919 412,770 DEBT SERVICE TOTAL OPERATING EXPENSES 1,187,697 382,780 3,950,765 1,831,929 1,062,509 7,449,878 41,463,875 CAPITAL IMPROVEMENT PROJECTS TOTAL 1,187,697 382,780 3,950,765 1,831,929 1,062,509 7,449,878 41,463,875 11.1 Acct Code Fire 2300 Planning 2700 Building 1 2900 I Gen. Svcs. 3100 I Library 4000 Rec &Sr Svc 4500 Pub. Works 5000 Utilities 5900 Internal Svc 6000 Other Activities Total 8178 980,660 8179 8180 63,500 63,500 8181 - _ - 46,794 - 6,000 414,950 8182 26,100 8183 117,000 117,000 8186 153,000 153,000 8190 413,000 413,000 8200 350,926 5.500 30,400 30,000 36,610 243,944 9,117 292,100 85,000 1,300,322 8202 12,900 14,400 8204 217,027 47,800 2,540 11,900 416,647 8206 61,000 8208 20,000 8209 47,525 8210 34,604 8211 20,995 8212 56,550 56,550 8214 3,300 3,300 8216 4,000 4,500 8220 17,600 17,600 8222 116,000 116,000 8224 26,200 26,200 8228 38,500 38,500 8232 26,500 26,500 8234 6,000 6,000 8235 36,000 36,000 8236 25,000 25,000 8238 596,200 596,200 8240 1,000 300 1,000 11,350 1,150 8,700 6,000 37,900 8250 99,618 225,080 2,127,695 107,221 181,000 2,000 5,000 3,329,035 8254 40,000 65,000 8255 50,000 8257 21,500 21,500 8259 26,415 26,415 8260 639,740 639,740 8265 20,000 8295 3,400,000 3,400,000 8296 3,200,000 3,200,000 8297 80,000 80,000 8298 609,831 185,000 794,831 8303 100,000 100,000 8330 1,759,490 1,759,490 8340 217,308 21,548 7,425 740,005 5,172 62,458 347,815 366,243 77,055 3,328,698 8511 5,000 5,000 8512 19,400 19,400 8551 129,000 129,000 8638 - - 4,700 - - 90,000 94,700 N/A 2,496,241 2,496,241 N/A 2,950,259 2,950,259 4,656,3291 545,1171 308,601 1 12,754,560 1 1,463,642 1 2,963,718 1 871,136 1 13,903,562 1 6,293,289 223,251 54,981,556 9000 32,500 18,500 6,000 20,700 3,000 146,819 9005 23,225 9,250 15,500 8,100 8,750 1,200 13,000 3,500 649,260 9020 13,000 109,100 127,100 9100 1,895,000 1,895,000 9102 4,700 4,700 9106 230,000 230,000 9200 2,000 13,000 17,500 9300 266,110 46,600 7,000 63,000 51,650 192,000 16,790 841,746 9400 16,000 8,000 9,200 1,000 57,939 302,335 57,750 26,500 62,100 124,200 77,750 31,100 70,650 2,338,200 16,790 3,970,064 4,128,677 4,128,677 29,587,854 2,882,068 3,774,922 22,684,331 5,921,538 6,060,218 5,082,383 19,553,818 14,253,568 4,478,439 171,608,575 37,316,135 37,316,135 29,587,854 2,882,068 3,774,922 22,684,331 5,921,538 6,060,218 5,082,383 19,553,818 14,253,568 41,794,574 208,924,710 IM11 SUMMARY OF ESTIMATED 2006 -07 YEAR END FUND BALANCES - 147,495,973 18,825,240 Estimated Estimated Estimated Actual Estimated Budget Capital Year End Fund Balance Revenue Transfers Transfers Expenditures Improvements Fund Balance and l Account 2005 -06 2006-07 In Out 2006 -07 2006.07 200607 General Fund - 147,495,973 18,825,240 19,697,694 133,054,590 13,568,929 - Contingency Reserve 15,424,293 - 1,944,681 - - - 17,368,974 Stabilization Reserve - - - - - - - ActualFairMarketValueAdj. - - - - - - - Future Fair Market Value Adj. - - - - - - Appropriations Reserve (operating) 558,081 - 1,260,303 - - - 1,818,384 Appropriations Reserve (capital) 2,077,278 - 6,642,700 2,077,278 - - 6,642,700 Reserve for Inventories 211,746 - - - - - 211,746 Reserve for Prepaid Items 865,350 - - - - - 865,350 Reserve for Encumbrances 6,918,206 - - 6,918,206 - - - Budgeted Program Changes 7,000,000 - - 7,000,000 - CDBG Fund - Affordable Housing Reserve 1,329,420 - 27,000 - - - 1,356,420 Reserve for Long term receivable 50,000 - - - - 15,450 50,000 Paramedic Program (Hoag) 266,871 - 1,449 - - - 268,320 Recreation Instruction Reserve 188,387 - 28,000 - - - 216,387 Senior Citizen Site 20,330 - 2,500 - - - 22,830 Park In Lieu Fees 1,309,816 - 68,940 - - 983,112 395,644 Off Street Parking 84,385 - 7,000 - - - 91,385 In Lieu Parking Fees 362,969 - 60,000 - - - 422,969 Neighborhood Enhancement Res. A 157,791 - 28,000 - - 185,791 Neighborhood Enhancement Res. B 776,934 - 300,000 - - 130,545 946,389 Oceanfront Encroachment 985,204 - 190,000 - - 118,495 1,056,709 Cable Franchise - - 1,216,400 - - - 1,216,400 Reserve for Capital improvement 11,000,000 - 3,000,000 - - - 14,000,000 Reserve for PERS Rate 5,000,000 164,501 - - 5,ODO,000 - 54,587,061 147,495,973 33,602,213 35,693,178 133,054,590 14,801,081 52,136,398 Ackerman Donation Fund - - - - - - - Appropriations Reserve - 40,000 - 40,000 - - - AppropriationsReserve - Scholarship 176,792 - 8,000 - 5,000 - 179,792 Appropriations Reserve - Hi Tech 9,482 - 10,000 - 19,482 - - Perm Scholarship Endowment Reserve 205,669 - 7,000 - - - 212,669 Perm Equipment Endowment Reserve 617,007 - 15,000 - - - 632,007 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrance - - - - - - - CDBG Fund - - - - - - Appropriations Reserve (355,181) 718,537 55,727 15,450 326,916 76,717 - Reserve for Encumbrance 55,727 - - 55,727 - - - AQMD Fund - - - - - Appropriations Reserve 170,199 104,000 - - 26,415 - 247,784 Reserve for Encumbrance - - - - - - - Asset Forfeiture Fund - - - - - Appropriations Reserve 83,893 45,000 - - 89,337 - 39,556 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - SLESF - COPS Fund - 164,501 - - 120,000 - 44,501 Justice Assistance Grant (formerly LLEBG) - - - - - - Appropriations Reserve - 7,422 - - 7,422 - - Fair Value Adj. Reserve - - - - - - - State Gas Tax Fund - - - - - - Appropriations Reserve 1,961,383 1,947,500 771,105 160,000 - 1,850,716 2,669,272 Fair Value Adj. Reserve - - - - - - - ReserveforEncumbrances 771,105 - - 771,105 - - - Trafflc Congestion Relief Fund - - - - - - Appropriations Reserve 13,544 704,791 - - - 701,030 17,305 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Measure M Fund Turnback 1,276,687 1,156,928 1,305,621 - - 2,248,771 1,490,465 Fair Value Adj. Reserve - - - - - - - TurnbackEncumbrances 1,305,621 - - 1,305,621 - - - Competitive (196,168) 811,168 222,142 - - 380,857 456,285 Competitive Encumbrances 222,142 - - 222,142 - - - AHRP Fund Appropriations Reserve (65,703) 1,393,500 - - - 1,327,797 - Reserve for Encumbrances - - - - - - - SK11 SUMMARY OF ESTIMATED 2006 -07 YEAR END FUND BALANCES Estimated Estimated Estimated Actual Estimated Budget Capital Year End Fund Balance Revenue Transfers Transfers Expenditures Improvements Fund Balance Fund /Account 2005 -06 2006 -07 In Out 2006 -07 2006 -07 2006 -07 Title and Submerged Land Fund Appropriation Reserve (1,425,928) 8,258,037 1,727,831 2,319,306 2,701,474 2,285,160 1,254,000 Fair Value Adj. Reserve - - - - - - - Appropriations Reserve (capital) 1,425,928 - - 1,425,928 - - - Reserve for Encumbrances 301,903 - - 301,903 - - - UpperBayReserve (132,367) - 75,000 197,736 - - (255,103) Oil and Gas 160,000 - 40,000 - - - 200,000 Contributions Fund Misc Cooperative Projects (5,116,196) 2,345,878 4,132,115 - - 6,274,994 (4,913,197) Bristol Street Relinquishment 790,548 - - - - 494,677 295,871 PCH Relinquishment 3,501,908 - - - - 91,642 3,410,266 Environmental Contributions (85,328) 1,432,513 - - - 4,439,402 (3,092,217) Reserve far Encumbrances 4,132,115 - - 4,132,115 - - - Circulation and Transportation Fund Appropriations Reserve 1,971,582 472,450 887,463 - - 2,442,663 888,832 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances 887,463 - - 887,463 - - - Building Excise Tax Fund Appropriations Reserve 289,916 160,000 8,481 - - 276,543 181,854 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances 8,481 - - 8,481 - - - Environmental Liability Fund Appropriation Reserve 2,389,283 446,000 - - 90,000 - 2,745,283 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Oil Spill Remediation Fund Appropriation Reserve 113,081 5,000 5,763 - - 120,845 2,999 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances 5,763 - - 5;763 - - - Newport Annexation Funds Receipt Fund 11,200,000 448,000 - 1,400,000 - - 10,248,000 Fair Value Adj. Reserve - Receipt - - - - - - - Allocation Fund - - 1,200,000 - 1,200,000 - - Fair Value Adj. Reserve - Allocation - - - - - - - Building Fund 81,915 270,000 6,156,603 - - 6,156,603 351,915 Fair Value Adj. Reserve - Building - - - - - - - ReserveforEncumbrances- Building 6,156,603 - - 6,156,603 - - - Library Debt Service Fund Appropriation Reserve - - 567,780 - 567,780 - - ReservefarDebtService 566,354 - - - - - 566,354 Assessment District Projects Appropriation Reserve 1,336,559 13,724 589,532 - - 598,533 1,341,282 Reserve for Encumbrances 589,532 - - 589,532 - - - Fair Value Adj. Reserve - - - - - - - Civic Center/ Fire Station Construction Appropriation Reserve (202,646) - 209,461 - - 6,815 - ReservefarEncumbrances 6,815 - - 6,815 - - - CIOSA Fund Appropriation Reserve 2,715,422 120,000 - - - - 2,835,422 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Bonita Canyon Development Fund - - - - - - Appropriation Reserve 60,616 4,000 28,384 - - 93,000 - Reserve for Encumbrances - - - - - - - Mariners Library Fund Appropriation Reserve (2,222,500) 2,100,589 594,251 - - 472,340 - Reserve for Encumbrances 472,340 - - 472,340 - - - Fire Station #7 Fund Appropriation Reserve (3,093,569) 1,600,000 8,586,962 - 7,088,562 4,831 Reserve for Encumbrances 7,086,962 - - 7,086,962 - Back Bay Science Center Fund - - Appropriation Reserve (2,063,509) - 4,126,623 - 6,575,210 - Reserve for Encumbrances 3,928,887 4,549,624 - 3,928,887 37,528 21 SUMMARY OF ESTIMATED 2006 -07 YEAR END FUND BALANCES Estimated Estimated Estimated Actual Estimated Budget Capital Year End Fund Balance Revenue Transfers Transfers Expenditures Improvements Fund Balance Fund l Account 200606 2006 -07 In Out 2006.07 2006 -07 2006 -07 SAH Community Center Appropriation Reserve (100,859) 100,859 - - - - - ReserveforEncumbrances - - - - - - - MISC SAH Projects Fund Appropriation Reserve (101,704) 650,000 - - - 235,696 312,600 Reserve for Encumbrances - - - - - - - Newport Bay Dredging Fund - - - - - Permanent Endowment 3,857,000 - - - - - 3,857,000 Appropriation Reserve 168,602 160,000 - - - - 328,602 Fair Value Adj. Reserve - - - - - - - Insurance Reserve Fund Workers'Compensalion Reserve 7,448,214 3,311,921 - - 2,418,461 - 8,341,674 Liability Reserve 1,396,042 3,441,197 - - 2,970,228 - 1,867,011 Fair Value Adj. Reserve - - - - - - - Retlree Medical Fund Operating Fund 3,253,536 420,000 - - 1,974,956 - 1,698,580 Conversion Fund 2,747,430 212,500 2,500,000 - - - 5,459,930 Fair Value Adj. Reserve - - - - - - - Compensaled Absence Fund Appropriation Reserve 1,102,554 2,071,972 - - 1,206,000 - 1,968,526 Fair Value Adj. Reserve - - - - - - - Equipment Fund Equipment Maintenance - 1,989,590 335,732 125,000 2,098,990 101,332 - EquipmentReplacement - Ali Other 7,340,898 2,889,085 1,925,279 460,732 3,864,246 - 7,830,284 Equipment Replacement - PD 1,632,823 979,588 - - 781,864 - 1,830.547 Fair Value Adj. Reserve - - - - - - - Reserve fur Encumbrances 1,925,279 - - 1,925,279 - - - Water Enterprise Fund - 17,949,553 5,094,266 1,418,523 16,701,742 4,923,554 - Water System Reserve 5,176,166 - 669,444 - - - 5,845,610 Stabilization Reserve 3,697,261 - 478,175 - - - 4,175,436 Future Infrastructure Reserve 1,444,699 - 270,904 1,444,699 - - 270,904 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances 3,649,567 3,649,567 13,967,693 17,949,553 6,512,789 6,512,789 16,701,742 4,923,554 10,291,950 Wastewater Enterprise Fund - 3,471,843 1,479,140 - 2,682,210 2,268,773 - Wastewater System Reserve 1,590,616 - - 137,798 - - 1,452,818 Stabilization Reserve - - - - - - - Future Infrastructure Reserve - - - - - - - Fair Value Adj. Reserve - - - - - - - ReserveforEncumbrances 1,341,342 1,341,342 2,931,958 3,471,843 1,479,140 1,479,140 2,682,210 2,268,773 1,452,818 TOTAL 144,246,659 214,463,243 77,685,997 77,685,997 172,907,113 66.333,313 119,469,476 22 SUMMARY OF ESTIMATED 2007 -08 YEAR END FUND BALANCES - 146,964,943 Estimated Estimated Estimated Estimated Budget Capital Year End Fund Balance Revenue Transfers Transfers Expenditures Improvements Fund Balance rund I Account 2006 -07 2007 -08 In Out 2007 -08 2007 -08 2007 -08 General Fund - 146,964,943 9,666,668 10,497,448 138,029,313 8,104,850 - Contingency Reserve 17,368,974 - - - - - 17,368,974 Stabilization Reserve - - - - - - - Actual Fair Market Value Adj. - - - - - - - Future Fair Market Value Adj. - - - - - - - Appropriations Reserve (operating) 1,818,384 - 3,265,098 - - - 5,083,482 Appropriations Reserve (capital) 6,642,700 - - 3,428,950 - - 3,213,750 Reserve for Inventories 211,746 - - - - - 211,746 Reserve for Prepaid Items 865,350 - - - - - 865,350 Reserve for Encumbrances - - - - - - - Budgeted Program Changes - - - - - - - Affordable Housing Reserve 1,356,420 - 553,000 - - - 1,909,420 Reserve for Long term receivables 50,000 - - - - - 50,000 Paramedic Program (Hoag) 268,320 - - 72,000 - - 196,320 Recreation Instruction Reserve 216,387 - 107,100 - - - 323,487 Senior Citizen Site 22,830 - 2,000 - - - 24,830 Park In Lieu Fees 395,644 - 763,020 - - - 1,158,664 Off Street Parking 91,385 - 9,500 - - - 100,885 In Lieu Parking Fees 422,969 - 10,000 - - - 432,969 Neighborhood Enhancement Res. A 185,791 - 28,000 - - - 213,791 Neighborhood Enhancement Res.B 946,389 - 300,000 - - 105,000 1,141,389 Oceanfront Encroachment 1,056,709 - 190,000 - - 599,100 647,609 Cable Franchise 1,216,400 - - 100,000 - - 1,116,400 Reserve for Capital Improvement 14,000,000 - - - - - 14,000,000 Reserve for PERS Rate Changes 5,000,000 - - - - - 5,000,000 Reserve for Encumbrances 52,136,398 146,964,943 14,894,386 14,098,398 138,029,313 8,808,950 53,059,066 Ackerman Donation Fund Appropriations Reserve - - - - - - - AppropriationsReserve - Scholarship 179,792 15,960 - - 5,000 - 190,752 Appropriations Reserve - Hi Tech - 26,040 - - 19,400 - 6,640 Perm Scholarship Endowment Resen 212,669 - - - - - 212,669 Perm Equipment Endowment Resew( 632,007 - - - - - 632,007 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrance - - - - - - - CDBG Fund Appropriations Reserve - 447,432 - 15,450 322,482 109,500 - Reserve for Encumbrance - - - - - - - AQMD Fund Appropriations Reserve 247,784 104,200 - - 26,415 - 325,569 Reserve for Encumbrance - - - - - - - Asset Forfeiture Fund Appropriations Reserve 39,556 45,250 - - 78,697 - 6,109 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - SLESF - COPS Fund 44,501 142,100 - - 120,000 - 66,601 Justice Assistance Grant (formerly LLEB( - - - - - - Appropriations Reserve - - - - - - - Fair Value Adj. Reserve - - - - - - - State Gas Tax Fund Appropriations Reserve 2,669,272 1,654,500 - 160,000 - 4,113,900 49,872 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Traffic Congestion Relief Fund Appropriations Reserve 17,305 - - - - 176,000 (158,695) Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Measure M Fund Turnback 1,490,465 1,359,774 - - - 2,737,000 113,239 Fair Value Adj. Reserve - - - - - - - Turnback Encumbrances - - - - - - - Compedtive 456,285 400,000 - - - 856,285 - Competitive Encumbrances - - - - - - - 23 SUMMARY OF ESTIMATED 2007 -08 YEAR END FUND BALANCES Estimated Estimated Estimated Estimated Budget Capital Year End Fund Balance Revenue Transfers Transfers Expenditures Improvements Fund Balance Fund /Account 2006 -07 2007 -08 In Out 2007 -08 2007 -08 2007 -08 AHRP Fund Appropriations Reserve - 653,000 - - - 653,000 - Reserve for Encumbrances - - - - - - - Tide and Submerged Land Fund Appropriation Reserve 1,254,000 9,490,963 - 5,622,474 2,768,489 2,354,000 - Fair Value Adj. Reserve - - - - - - - Appropriations Reserve (capital) - - - - - - - Reserve for Encumbrances - - - - - - Upper Bay Reserve (255,103) - 97,206 - - - (157,897) Oil and Gas 200,000 - 40,000 - - - 240,000 Contributions Fund Misc Cooperative Projects (4,913,197) 1,212,484 - - - 2,799,400 (6,500,113) Bristol Street Relinquishment 295,871 - - - - 100,000 195,871 PCH Relinquishment 3,410,266 - - - - 250,000 3,160,266 Environmental Contributions (3,092,217) - - - - 167,500 (3,259,717) Reserve for Encumbrances - - - - - - - Circulation and Transportation Fund Appropriations Reserve 888,832 455,400 - 80,000 - 1,273,400 (9,168) Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Building Excise Tax Fund Appropriations Reserve 181,854 160,500 - - - 340,100 2,254 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Environmental Liability Fund Appropriation Reserve 2,745,283 471,800 - - 90,000 635,000 2,492,083 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Oil Spill Remediation Fund Appropriation Reserve 2,999 5,250 - - - - 8,249 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Newport Annexation Funds Receipt Fund 10,248,000 470,400 - 1,400,000 - - 9,318,400 Fair Value Adj. Reserve - Receipt - - - - - - - Allocation Fund - - 1,200,000 - 1,200,000 - - Fair Value Adj. Reserve- Allocation - - - - - - - Building Fund 351,915 283,500 - - - - 635,415 Fair Value Adj. Reserve- Building - - - - - - - Reserve for Encumbrances-Building - - - - - - - Library Debt Service Fund Appropriation Reserve - - 569,730 - 569,730 - - Reserve for Debt Service 566,354 - - - - - 566,354 Assessment District Projects Appropriation Reserve 1,341,282 14,410 - - - - 1,355,692 Reserve for Encumbrances - - - - - - - Fair Value Adj. Reserve - - - - - - - Civic Center/ Fire Station Construction Appropriation Reserve - - - - - - - Reserve for Encumbrances - - - - - - - CIOSA Fund Appropriation Reserve 2,835,422 126,000 - - 270,000 1,078,500 1,612,922 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Bonita Canyon Development Fund Appropriation Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Mariners Library Fund Appropriation Reserve - - - - - - - Reserve for Encumbrances - - - - - - - 24 SUMMARY OF ESTIMATED 2007 -08 YEAR END FUND BALANCES Estimated Estimated Estimated Estimated Budget Capital Year End Fund Balance Revenue Transfers Transfers Expenditures Improvements Fund Balance and /Account 2006 -07 2007 -08 In Out 2007 -08 2007 -08 2007 -08 Fire Station #7 - Appropriation Reserve 4,831 - - - - - 4,831 Reserve for Encumbrances - - - - - - Back Bay Science Center Fund - - - Appropriation Reserve 37,528 - - - - 37,528 Reserve for Encumbrances - - - - - - SAH Community Center - - - - - - - Appropriation Reserve - - - - - - - Reserve for Encumbrances - - - - - - - MISC SAH Projects Fund - - - - - - Permanent Endowment 312,600 7,528,000 - - - 7,840,600 - Appropriation Reserve - - - - - - - Newport Bay Dredging Fund Permanent Endowment 3,857,000 - - - - 3,857,000 Appropriation Reserve 328,602 168,000 - - - 496,602 Fair Value Adj. Reserve - - - - - - Insurance Reserve Fund Workers' Compensation Reserve 8,341,674 3,388,726 1,500,000 - 2,496,241 - 10,734,159 Liability Reserve 1,867,011 3,376,023 500,000 - 2,950,259 - 2,792,775 Fair Value Adj. Reserve - - - - - - - Retiree Medical Fund Operating Fund 1,698,580 1,470,500 - - 3,133,000 - 36,080 Conversion Fund 5,459,930 223,125 2,700,000 - - - 8,383,055 Fair Value Adj. Reserve - - - - - - - Compensated Absence Fund Appropriation Reserve 1,968,526 2,146,322 - - 1,206,000 - 2,908,848 Fair Value Adj. Reserve - - - - - - - Equipment Fund Equipment Maintenance - 2,050,000 - 632 2,049,368 - - EquipmentReplacement - All Other 7,830,284 3,072,630 - 125,000 1,954,520 - 8,823,394 Equipment Replacement - PD 1,830,547 960,320 632 - 514,000 - 2,277,499 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances - - - - - - - Water Enterprise Fund - 18,630,585 124,187 - 16,715,772 2,039,000 - Water System Reserve 5,845,610 - - - - - 5,845,610 Stabilization Reserve 4,175,436 - - - - - 4,175,436 Future Infrastructure Reserve 270,904 - - 124,187 - - 146,717 Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances 10,291,950 18,630,585 124,187 124,187 16,715,772 2,039,000 10,167,763 Wastewater Enterprise Fund - 3,889,514 - 265,625 2,639,889 984,000 - Wastewater System Reserve 1,452,818 - - - - - 1,452,818 Stabilization Reserve - - 265,625 - - - 265,625 Future Infrastructure Reserve - - - - - - - Fair Value Adj. Reserve - - - - - - - Reserve for Encumbrances 1,452,818 3,889,514 265,625 265,625 2,639,889 984,000 1,718,443 TOTAL 119,469,476 211,407,651 21,891,766 21,891,766 177,158,575 37,316,135 116,402,417 25 2007 -08 FUND TRANSFERS - ALL FUNDS Transfer In (From General Fund Reserves): Current Year Operations $ Contingency Reserve Actual Fair Market Value Adj. Appropriations Reserve (operating) Transfer In (From Current Year Operations): Appropriations Reserve (capital) Paramedic Program (Hoag) Recreation Instruction Reserve Senior Citizen Site Park In Lieu Fees Off Street Parking In Lieu Parking Fees Neighborhood Enhancement Res. A Neighborhood Enhancement Res. B Oceanfront Encroachment Affordable Housing Reserve for Capital Improvement Reserve for PIERS Rate Changes Transfer In (From Other Funds): Gas Tax Fund Tidelands Fund CDBG Fund AQMD Fund Circulation & Transportation Fund Equipment Maintenance Fund 3,600,950 3,265,098 107,100 2,000 763,020 9,500 10,000 28,000 300,000 190,000 553,000 160,000 5,485,268 15,450 :r r19 Equipment Replacement Fund 125,000 Newport Annexation Funds 200,000 Total Transfers In $ 14,894,386 eneral Fund Transfer Out (To General Fund Reserves): Current Year Operations $ Contingency Reserve Actual Fair Market Value Adj. Appropriations Reserve (operating) Transfer Out (To Current Year Operations): Appropriations Reserve (capital) Encumbrances Unrealized Events Impacting Budget Paramedic Program (Hoag) Recreation Instruction Reserve Senior Citizen Site Park In Lieu Fees Off Street Parking In Lieu Parking Fees Neighborhood Enhancement Res. A Neighborhood Enhancement Res. B Cable Franchise Reserve for Capital Improvement Transfer Out (To Other Funds): Library Debt Service Fund Retiree Medical Fund- Operating Retiree Medical Fund- Conversion General Liability Fund Workers Compensation Fund 5,227,718 3,428,950 72,000 100,000 569,730 2,700,000 500,000 1,500,000 Total Transfers Out $ 14,098,398 Ackerman Donation Fund Ackerman Donation Fund Transfer In (From): Transfer Out (To): Appropriation Reserve $ - Fund Balance $ - Total Transfers In $ - Total Transfers Out $ - Transfer In (From): Reserve for Encumbrance $ Total Transfers In $ - Transfer Out (To): General Fund $ 15,450 Appropriation Reserve - Total Transfers Out $ 15,450 AQMD Fund AQMD Fund Transfer In (From): Transfer Out (To): $ - General Fund $ - Total Transfers In $ - Total Transfers Out $ - 26 2007 -08 FUND TRANSFERS - ALL FUNDS Asset Forfeiture Asset Forfeiture Transfer In (From): Transfer Out (To): Reserve for Encumbrance $ - Appropriations Reserve $ - Total Transfers In $ - Total Transfers Out $ - State Gas Tax Fund State Gas Tax Fund Transfer In (From): Transfer Out (To): Reserve for Encumbrance $ - General Fund $ 160,000 Appropriation Reserve - Total Transfers In $ - Total Transfers Out $ 160,000 Traffic Congestion Relief Fd. Traffic Congestion Relief Fd. Transfer In (From): Transfer Out (To): Fund Balance $ - Appropriation Reserve $ - Total Transfers In $ - Total Transfers Out $ - Measure M Funds Measure M Funds Transfer In (From): Transfer Out (To): Turnback Encumbrances $ - Turnback Fund Balance $ - Competitive Encumbrances - Competitive Fund Balance - Total Transfers In $ - Total Transfers Out $ - Bikes & Trailways (SB821) Bikes & Trailways (SB821) Transfer In (From): Transfer Out (To): Fund Balance $ - Appropriation Reserve $ - Reserve for Encumbrance - Total Transfers In $ - Total Transfers Out $ - AHRP Fund AHRP Fund Transfer In (From): Transfer Out (To): Fund Balance $ - Fund Balance $ - Total Transfers In $ - Total Transfers Out $ - Tidelands Fund Tidelands Fund Transfer In (From): Transfer Out (To): Reserve for Encumbrances $ - General Fund $ 5,485,268 Tidelands Operations 137,206 Appropriation Reserve - Appropriation Reserve - Upper Bay Reserve 97,206 Oil & Gas Reserve 40,000 Total Transfers In $ 137,206 Total Transfers Out $ 5,622,474 Contributions Fund Contributions Fund Transfer In (From): Transfer Out (To): Reserve for Encumbrances $ - Appropriation Reserve $ - Total Transfers In $ - Total Transfers Out $ - 27 2007 -08 FUND TRANSFERS - ALL FUNDS Circulation Fund Circulation Fund Transfer In (From): Transfer Out (To): Fund Balance $ - General Fund $ 80,000 Reserve for Encumbrance - Ciosa Fund - Total Transfers In $ - Total Transfers Out $ 80,000 Building Excise Tax Fund Building Excise Tax Fund Transfer In (From): Transfer Out (To): Appropriations Reserve $ - Reserve for Encumbrances $ - Reserve for Encumbrances - Appropriation Reserve - Fund Balance - Fund Balance - TotalTransfersln $ - Total Transfers Out $ - Environmental Liability Fund Environmental Liability Fund Transfer In (From): Transfer Out (To): Appropriation Reserve $ - Fund Balance $ - Total Transfers In $ - Total Transfers Out $ - Oil Spill Remediation Fund Oil Spill Remediation Fund Transfer In (From): Transfer Out (To): Reserve for Encumbrances $ - Appropriation Reserve $ - Total Transfers In $ - Total Transfers Out $ - Newport Annexation Funds Newport Annexation Funds Transfer In (From): Transfer Out (To): Receipt Fund $ - General Fund $ 200,000 Allocation Fund 1,200,000 Receipt Fund 1,200,000 Building Fund Encumbrances - Building Fund Appropriations - Total Transfers In $ 1,200,000 Total Transfers Out $ 1,400,000 Library Debt Service Fund Library Debt Service Fund Transfer In (From): Transfer Out (To): General Fund $ 569,730 Fund Balance $ - Total Transfers In $ 569,730 Total Transfers Out $ - Assessment Districts Fund Assessment Districts Fund Transfer In (From): Transfer Out (To): Reserve for Encumbrance $ - Appropriation Reserve $ - Fund Balance - Fund Balance - Total Transfers In $ - Total Transfers Out $ - CIOSA Fund CIOSA Fund Transfer In (From): Transfer Out (To): Fund Balance $ - Appropriation Reserve $ - Total Transfers In $ - Total Transfers Out $ - a.7 2007 -08 FUND TRANSFERS - ALL FUNDS Mariners Library Fund Mariners Library Fund Transfer In (From): Transfer Out (To): Reserve for Encumbrances $ - Appropriation Reserve $ - Total Transfers In $ - Total Transfers Out $ - Fire Station # 7 Fire Station # 7 Transfer In (From): Transfer Out (To): Reserve for Encumbrances $ - General Fund - Appropriation Reserve $ - Total Transfers In $ - Total Transfers Out $ - Retiree Medical Fund Retiree Medical Fund Transfer In (From): Transfer Out (To): Fund Balance $ 2,700,000 Appropriation Reserve $ - Reserve for Encumbrance - Total Transfers In $ 2,700,000 Total Transfers Out $ - Insurance Reserve Fund Insurance Reserve Fund Transfer In (From): Transfer In (From): Transfer Out (To): Transfer Out (To): Fund Balance $ 2,000,000 Appropriation Reserve $ - Water Operations $ - Reserve for Encumbrance - Total Transfers In $ 2,000,000 Total Transfers Out $ - - Future Infrastructure Reserve 124,187 Stabilization Reserve Equipment Fund - Water Fund Balance Equipment Fund Transfer In (From): $ 124,187 Transfer Out (To): $ Equipment Maintenance $ 632 General Fund Overhead $ 632 Reserve for Encumbrance - Equipment Replacement 125,000 Total Transfers In $ 632 Total Transfers Out $ 125,632 Transfer In (From): Water Enterprise Fund Water Enterprise Fund Transfer In (From): Transfer Out (To): Operations $ 124,187 Water Operations $ - Reserve for Encumbrances - Water System Reserve - Future Infrastructure Reserve - Future Infrastructure Reserve 124,187 Stabilization Reserve - Water Fund Balance Total Transfers In $ 124,187 Total Transfers Out $ 124,187 Wastewater Enterprise Fund Wastewater Enterprise Fund Transfer In (From): Transfer Out (To): Wastewater System Reserve $ 265,625 Wastewater Operations $ 265,625 Reserve for Encumbrance - Reserve for Encumbrance - Future Infrastructure Reserve - Wastewater Infrastructure. Rsv. - Stabilization Reserve - Total Transfers In $ 265,625 Total Transfers Out $ 265,625 TOTAL TRANSFERS $ ITOTAL TRANSFERS $ 21 891 766 29 C 9 4M t4 TW40 CITY COUNCIL o� v 32 To protect Newport Beach's unique quality of life for the full enjoyment of its residents, visitors, and business owners and to direct the efficient and effective delivery of municipal services. The Newport Beach City Council Newport Beach is a "charter city," which, among other things, means that Newport Beach's voters have approved a Charter that governs many city operations. The Charter also sets forth a governing board of seven members. The seven members of the Newport Beach City Council each represent and reside in one of seven districts. But because Council Members are elected "at large" by all of Newport Beach's registered voters, they have a broader constituency, too. Being a council member is technically just a part-time job, but the time commitment -- from early morning meetings with residents to special committee assignments to Council meetings that can run late into the night -- often takes up 40+ hours a week. The Charter also directs the City Council to hire a "chief executive officer'— called the City Manager — to run the day -to -day operations of the City "corporation." The City Manager, the City Clerk, and the City Attorney are the only city employees directly hired by the City Council — the City Manager oversees the hiring of everyone else. The City Council has two primary tools to implement policy — the City's yearly budget and the various priorities that the Council sets at its twice -a -month public meetings. For the year 2007 -08, the Council expects to follow these efforts (among others) closely: 2007 -08 Council Efforts • Implement the recently- approved General Plan for the community. • Effectively address traffic, so that residents, visitors, and business owners can travel within the community safely and spend minimal time in traffic. • Implement a detailed Master Facilities Program, including City Hall, the OASIS Senior Center, Fire Stations, and other city facilities so that the City can comprehensively see and address its facilities' needs over the next 20+ years. • Develop even stronger relationships with "Corridor Cities" (other cities impacted by John Wayne Airport both on the departure side and the approach side) so that we can keep JWA within its current curfew and flight restrictions. • Develop a Water Quality Master Plan to protect the Upper and Lower Newport Bay from sedimentation and pollution, to better conserve water, and to keep our ocean beaches and near -shore zone free of contaminants. • Gain more local control to limit the adverse impacts associated with the overconcentration of residential treatment homes and congregate living facilities. • Complete planning for and starting construction of new parks, such as Marina Park, Sunset Ridge Park, Mesa -Birch Park, Coastal Peak Park and Newport Center Park. • Encourage broad community and City use of newly opened facilities, such as the Back Bay Science Center, the Santa Ana Heights Fire Station, and the Newport Coast Community Center. The City Council's budget includes the costs of the City's membership in key associations that work towards common municipal purposes, like the League of California Cities and the Southern California Association of Governments (SCAG). 2004 -05 2005 -06 2006 -07 2007 -08 Actual* Actual* Estimated* Proposed* Salaries and Benefits $ 239,265 $ 258,922 $ 169,981 $ 244,778 Maintenance and Operations $ 1,390,787 $ 1,791,445 $ 904,893 $ 935,919 Capital Outlay $ 8,869 $ 3,419 $ - $ 7,000 Total $ 1,638,921 $ 2,053,786 $ 1,074,874 $ 1,187,697 * Includes Spheres Issues and Centennial expenditures o ti a �a A h O 9191 CITY CLERK To provide service to the Mayor and City Council, City Manager, c administrative departments, and the public in a courteous, timely, y and efficient manner while remaining neutral and impartial. To improve the administration of the affairs of the City Clerk's office consistent with applicable laws and through sound management practices to provide easier access to local government and fulfill our responsibility to the residents of Newport Beach. The City Clerk attends all meetings of the City Council and serves as Clerk of the Council. Some of the primary responsibilities performed by the City Clerk are: • Prepares and publishes agendas for City Council meetings in accordance with the legal requirements for public meetings. • Records and maintains the proceedings of the City Council meetings, including an index of the City Council actions. • Maintains official records associated with formal actions of the City Council, assists the public with research and retrieval of information and retrieves and certifies public documents. • Maintains the document imaging system in order to reduce staff time in searching, retrieving and copying records, as well as providing storage for permanent records. • Provides staff and the residents with online access to the Newport Beach Municipal Code; Council Policy Manual; Boards, Commissions and Committees Manual; application blanks and vacancy notices for Boards and Commissions; City Council agendas, minutes, and staff reports. • Assists the public in understanding and participating in the decision and policy making process. • Maintains Appointive List as required under Maddy Appointive List Act (for Boards and Commissions). • Processes legal publications, postings and notices. • Ensures accurate codification of City- adopted ordinances. • Acts as Filing Officer for the Political Reform Act of 1974 regulations (campaign disclosure forms and statements of economic interest). • Receives and opens bids for City projects. • Receives and processes claims for damages and, summons and complaints against the City. • Serves as the City's Election Official and receives petitions relating to initiatives, referendums or recalls. • Serves as custodian of the official records of the City and maintains custody of the City Seal. • Executes all ordinances, resolutions and contracts. • Administers oaths, affirmations and acknowledgements. • Processes passport applications in accordance with U.S. Department of State procedures. 34 Welcome to the Live and Archived Video web page..... Note: To browse Council Meeting archives of 2006 - click here To browse Council Meeting archives of 2005 - click here Upcoming Events Name Date City Council Study Session March 13, 2007 - 4:00 PM Agenda City Council Regular Meeting March 13, 2007 - 7:00 PM Agenda Archived Videos Search Archives 2004 -2005 MSS Feetls 2006 -2007 326,349 Actual Actual Estimated Subscribe to Archives via NSS eu, navo� na4 23 Council Meetings, Special or Adjourned Feed 27 22 Resolutions adopted 78 itleo J AAerd J Minutes) 27 26 What are RES Feeds? Municipal elections Name Date 1 Registered voters 60,529 City Council Study Session February 27, 2007 Agenda Minutes Video City Couneil Regular Meeting February 27, 2007 Agenda Minutes Video City Council Study Session February 13, 2007 Agenda Minutes Video City Council Regular Meeting February 13, 2007 Agenda Minutes Video Ctv Council Study Session January 23, 2007 Agenda iM nutes Video City Council Regular Me itina January 23, 2007 Agenda Minutes Vide City Couneil Study Session ]anuary 9, 2007 Aoentla Minutes Video City Coun Cl Regular Meetng. January 9, 2007 Agenda Minutes Video Delivering public access to local government by streaming public meetings. Service Indicators 2004 -2005 2005 -2006 2006 -2007 326,349 Actual Actual Estimated Council Meetings, Regular 23 23 23 Council Meetings, Special or Adjourned 23 27 22 Resolutions adopted 78 89 80 Ordinances adopted 27 26 30 Municipal elections 1 0 1 Registered voters 60,529 60,373 59,885 Municipal Code Supplement pages distributed 52,479 56,595 55,000 Claims /Summons and Complaints processed 169 117 127 Contracts /Agreements processed 113 115 120 Notices of Completion /Release Bonds 17 20 14 Documents processed to Orange County Recorder 17 31 20 Pages scanned into Document Imaging System 80,000 50,000 50,000 Passports processed 655 457 400 2007 -2008 Projected 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed 23 25 80 30 0 60,000 55,000 150 120 15 20 50,000 400 Salaries and Benefits $ 288,860 $ 326,349 $ 232,015 $ 327,976 Maintenance and Operations $ 34,089 $ 97,730 $ 112,875 $ 54,804 Capital Outlay $ 2,901 $ - $ 9,062 $ - Total $ 325,850 $ 424,079 $ 353,952 $ 382,780 Elections $ 49,606 $ - $ 100,000 $ - Grand Total $ 375,456 424,079 $ 453,952 382,780 m� A n to Aa � O A O s 35 CITY MANAGER o � v H 3 G To maintain the delivery of high quality municipal services and legislate and manage the affairs of the city according to law and for the benefit of residents and property owners. The City Manager The City Council appoints the City Manager to make sure the City's operations run effectively. The City's Charter prescribes specific duties to the City Manager, including the power to appoint department directors and to develop the annual budget. The Charter also directs the City Manager to report back to the Council each year on the fiscal operations of the City, to see that the City follows the laws of the Charter and the State of California, and more. The City Manager implements the direction of the City Council to ensure that the priorities and interests of the Council are achieved. In addition to attending Council meetings, the City Manager convenes meetings of the City's Management Team (department directors) and of individuals and groups throughout the City. Other topics more regional in nature are also on the City Manager's plate. The City Manager's Office monitors the political and economic environment outside the city to ensure that outside forces do not compromise Newport Beach's quality of life, public safety system, or its finances. In 2007 -08, these external issues may include: • Actions at the State level that might impact City finances. Changes in the local, state, and national economy that may also change the City's revenue base. Positioning the City to effectively compete for State grant funding for new projects, especially those that address dredging, toxic hot spots, and other costly water quality obligations. The City Manager's budget includes three key divisions — Code & Water Quality Enforcement, Harbor Resources and Public Information. Because the strategic issues supervised by the City Manager's Office can require the use of specialized expertise, this budget also includes funds for short-term contracts with consultants. Code & Water Quality Enforcement Division The City's Code and Water Quality Enforcement Division is one of the most well-respected in the region. Code & Water Quality Enforcement has two major emphases: protecting the community's quality of life via the enforcement of the municipal code (regarding noise, nuisances, signage, encroachments, and more) and protecting Newport Bay and our ocean shoreline by implementing State and Federal clean water requirements. The Division will continue its proactive, face -to -face education and enforcement efforts regarding "best management practices" (BMPs) for water conservation and water quality. Public Information Division The Public Information Division will focus implementing new public, governmental, and educational ( "PEG ") programming opportunities that resulted from two major agreements or settlements with local cable companies in 2006 -07. These efforts brought more than $1,000,000 to the City on a one -time basis and up to $90,000 annually for community programming. Harbor Resources Division More than 1,200 individuals and businesses operate a pier, marina, or mooring in Newport Harbor and therefore require a formal permit to access and use this resource. Habitat protection, water quality improvement, and the myriad regulations that direct the City to comply with the federal Clean Water Act, the Coastal Act, and the City's Harbor Policy demand specific attention by the Harbor Resources staff. The Harbor Commission, a seven - member board appointed directly by the City Council -- plays an important role here, too. The Harbor Resources Division includes parking lot administration and an innovative tidepool protection program. Harbor Resources is housed at the Balboa Yacht Basin off of Harbor Island Drive. Service Indicators 2004 -05 2005 -06 2006 -07 2007 -08 Dredging Permits Reviewed Actual Actual Estimated Projected Code & Water Quality Enforcement Division 25 21 20 20 Administrative Citations Issued 275 285 256 250 Educational Contacts Made 1,800 1,850 1,900 2,000 Water Quality Education Impressions 670,000 680,000 700,000 720,000 Public Information Division 126,000 119,000 130,000 135,000 Time Warner /Cox Monthly Half Hour Shows 96 98 68 108 Outside Government Programming 39 48 Special Events Cable Programming 4 8 12 12 Quarterly Newsletter "City Scenes" 4 4 2 W News Releases 21 19 21 24 Web Site Responses (www.nbcitynews.com) 104 65 16 60 Web Streaming of NBTV News Programs - 36 40 72 Info -by -email Notices 16 9 11 24 Public Education Tours /Speakers Bureau 2 2 4 7 Harbor Resources Division Dock Construction Permits Reviewed 100 122 170 190 Dredging Permits Reviewed 35 25 30 40 Fire Code Compliance Citations Issued 25 21 20 20 Other Harbor Compliance Warnings and $ 1,203,669 Capital Outlay $ Citations 15 15 15 15 Number of Vehicles at Balboa Pier Lot 227,000 229,000 230,000 230,000 Number of Vehicles at CDM Lot 126,000 119,000 130,000 135,000 Number of Students Trained /Educated and Public Contacts via Marine Life Refuge Program 73,000 74,200 76,000 80,000 Number of Classes Coordinated by MLR Program 271 245 275 300 * Newsletter discontinued 1/2007 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed Salaries and Benefits $ 2,066,053 $ 2,288,055 $ 1,831,162 $ 2,709,096 Maintenance and Operations $ 663,611 $ 1,457,640 $ 719,677 $ 1,203,669 Capital Outlay $ 24,860 $ 36,368 $ 7,060 $ 38,000 Total $ 2,754,524 $ 3,782,063 $ 2,557,899 $ 3,950,765 � b e t rD 0 S A a � O A HUMAN RESOURCES z o z v y � 38 To increase the City's effectiveness through recruitment and retention of employees committed to providing quality public service that meets the goals and objectives set by the City Council and the City Manager. We further this mission by the development of systems which recognize the value of each employee and provide the necessary tools to recruit, retain, and develop a workforce capable of high performance. We accomplish this mission by having a "customer first" attitude; demonstrating a spirit of cooperation; being a trusted and valued source of human resources knowledge and expertise, and by being responsive to and aware of internal and external customer needs. Department Highlights for FY 2006 -07 This year, City -wide recruitments in all departments continue to increase significantly. The recruitment process provides reliability and validity in our selection of employees and assists us in defending our hiring decisions. We have been developing more job - related written and performance tests, as well as providing additional involvement in the oral board process to ensure objective evaluation and consistency among interviews. Our recruitment procedures provide us with the job - related tools needed to hire the best candidate for the position based on needs and requirements of each department. To better serve our customers and work more efficiently, we fully implemented the new NEOGOV software program which provides on -line recruitment, selection, applicant tracking, reporting and analysis. This program maximizes efficiency and provides measurable results. It has saved us expense and time by allowing the review of applications on -line and eliminating endless copying of applications. Our on -line application percentage is approximately 99 %, which allows most applicants to be notified by email; thereby eliminating most of our postage costs. NEOGOV also provides statistical reports that are readily available at each step in the recruitment process and allows candidates access to their standing in the process. To address the immediate needs of support staff, we now have a 'clerical pool' with on -call applicants we can request on a temporary basis to fill vacancies due to medical leaves or emergencies. In addition, we have been able to use temporary Human Resources Analysts and clerical support to provide faster service to the departments, so that they can fill their vacancies and provide better customer service to the citizens that we serve. This year, we also worked closely with Administrative Services to implement a new on -line benefit open enrollment. This is part of the new Employee Access Center (EAC) where employees can access all of their information and input changes as needed. The EAC also provides a total benefit statement showing the individual cost of all benefits for each employee. The on -line benefit open enrollment feature in the EAC allowed us to provide better benefit services to our employees while reducing postage and additional staff -time costs. Last year was the culmination of several years of hard work from a City -wide committee of employees whose goal was to develop a new Employee Performance Evaluation Program. The Human Resources Manager chaired the committee, which consisted of employees from various departments. Together they developed a new performance evaluation form and guidebook so that all employees in the City are evaluated consistently, using the same forms and guidebook. This year, we implemented the new performance evaluation system on -line and developed a notification system for departments as a reminder of upcoming and past due evaluations. Human Resources Administration /Operations Staffing: 5.5 plus 1.5 FTE $1,317,835 Labor Relations /MOU Administration Personnel Policies Deferred Compensation Civil Service Commission Support City Employee Activities & Events City Telephone Directory Employee Identification Cards & Parking Permits Employment Verifications Personnel Action Form Processing Changes of Addresses Front Office and Public Counter Service Employee /Labor Relations City -Wide Training Recruitment/Selection Classification/Compensation PERS /PARS Assistance Tuition Reimbursement Exit Interviews Unemployment Administration Grievances & Disciplines Records Management Risk Management Staffing: 3.5 General Liability Workers' Compensation Claims Administration Disability Benefits Employee Health Fair Employee Assistance Program Employee Fitness Center Administration Pre - employment Physical Exams Benefits Administration DOT Drug Program FMLA/HIPPA Compliance Safety Program DMV Employee Pull Program Retiree Medical Insurance New Employee Orientation Disability Retirements Contract Review & Insurance Compliance Insurance Procurement Special Event Review Loss Control Advisory Services Employee & Retirement Counseling m� A � A O� � HUMAN RESOURCES (Continued) r � O u 0 v 3 a d us] Human Resources Objectives FY 2007 -2008 • Develop quarterly new employee City -wide orientation program • Develop, train, and implement new Administrative Procedures • Revise and improve the City's Safety and Accident program and procedures • Develop RFP and conduct Risk Management Audit • Develop and implement City -wide supervisory training • Update Employee Policy Manual Budget Highlights The HR Department will continue to provide the tools and training needed to keep current with Human Resources - related laws and practices. Automating processes and developing procedures for City -wide consistency is a high priority, along with City- wide training and developing a strong safety program for all employees. 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed Salaries and Benefits $ 856,861 $ 962,811 $ 798,140 $ 1,160,270 Maintenance and Operations $ 421,983 $ 582,767 $ 371,178 $ 663,660 Capital Outlay $ 9,364 $ 10,152 $ 9,440 $ 8,000 Total $ 1,288,208 $ 1,555,730 $ 1,178,758 $ 1,831,930 Service Indicators 2004 -2005 2005 -2006 2006 -2007 2007 -2008 Actual Actual Estimated Projected Recruitments 67 88 110 120 Firefighter Pre - Employment Process 15 25 15 25 Tuition Reimbursements 153 165 184 200 Unemployment Claims 16 20 21 21 Personnel Action Forms 1,256 1,488 1,489 1,520 Classification /Compensation Studies 38 40 20 22 Surveys for other agencies 168 180 189 189 PERS /PARS Issues 98 105 110 110 New Hire Fingerprints entered 368 384 449 470 Trainings Conducted 13 27 25 30 Contract Negotiations meetings 40 20 50 30 Employee Relations Matters 26 30 35 40 Benefit Forms Processed Actives & Retirees 728 926 1,386 1,665 General Liability Claims 77 45 116 105 Workers' Compensation & Disability Claims 126 133 191 173 Industrial Disability Retirements Processed 3 3 9 6 New Employee Orientations Conducted 35 69 88 105 Part-time hires 51 140 150 165 500 450 400 350 300 250 200 150 100 50 n Hecruitm en is Firefighter Pro- Fingerprints PT Hires Employment Recruiting Tuition Unemployment PHFS Cla —Comp Agency Snrvcys PERSIPARS TNnings Cast ro.! Employee Reimbursements Claims Slutlies Issues Conducted Negotiations Relations Matters Benefit FormsGeneral Liability Workers' Industrial Processed Claims Compensation Disability & Disability Retirements Claims 10 2006 -07 Projected ■ 2007 -08 Estimated Risk Management 41 CITY ATTORNEY o = v h � t`•= o C2 a v 3 42 To represent and /or advise City Council, Boards and Commissions, and City Staff with respect to all legal matters pertaining to the City Primary Goals • To maintain an accessible attorney staff and provide timely responses to formal and informal requests for legal advice. • To work with other City department heads in developing legal strategies for implementing Council goals, identifying legal issues to surrounding community development proposals and responding to community concerns about traffic and quality of life. • To work with Risk Management to provide effective legal counsel to represent and appear for the City in all legal actions, or proceedings including defense of tort liability claims and enforcement of City codes, rules and regulations. • To be proactive to limit City liability and to present reasonable and cost effective solutions to legal problems without compromising the interests of the City, its officers, or employees. Service Indicators Requests for Opinions /Advice (In- House) Council, Board, and Commission Meetings Preparation /Review of Contracts, MOLls, Agreements Litigation Caseload Code Enforcement Caseload Development/review of Resolutions and Ordinances Court and Hearing Appearances Public Assistance (phone or in person, by attorney or support staff) Legislative Advocacies Public Records Act Requests 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Projected 5,500 5,500 6,000 6,000 100 100 100 100 300 400 500 500 50 50 25 5 80 80 70 50 85 85 100 100 80 80 40 10 7,200 7,200 7,000 7,200 20 20 20 20 40 60 70 80 One City Attorney One Assistant City Attorney One Administrative Assistant to the City Attorney One Part-Time Office Assistant Two Part-Time Deputy City Attorneys One Part-Time Paralegal Department Functions The City Attorney acts as the legal advisor and counsel for the City Council, City Boards and Commissions, City Manager, and all City Departments. Some of the primary functions of this office are to: • Render legal opinions and advice to City Council and City staff. • Review and /or prepare proposed contracts, bond financing papers, and insurance requirements. • Monitor, control, defend against liability claims and lawsuits, enforce Municipal Code. • Attend meetings of the City Council and Planning Commission, as well as other boards, committees, and commissions as required and render legal advice on agenda items and open meeting laws. • Prepare, review drafts, and assist in the negotiation of agreements to which the City is a party. • Draft and analyze, support legislative efforts necessary to achieve City Council goals. • Prepare or review ordinances, resolutions, deeds, pleadings, and other legal documents. • Appear before courts and administrative tribunals to represent the City's interests in regulatory and personnel hearings and appeals. 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed Salaries and Benefits $ 649,068 $ 831,051 $ 624,136 $ 820,204 Maintenance and Operations $ 312,857 $ 187,002 $ 362,971 $ 238,305 Capital Outlay $ 8,548 $ 2,067 $ 5,506 $ 4,000 Total $ 970,473 $ 1,020,120 $ 992,613 $ 1,062,509 A o Aa � o p O 43 ADMINISTRATIVE SERVICES z o z a y � � z a � QO 44 To provide the highest quality Information Technology Services, Financial Management, and a variety of Support Services for City Officials, the Public, and Other Departments The Organization The Administrative Services Department is a composite organization that performs a diverse collection of financial and technological services. The Resource Management Division is the executive division of the Department that oversees four functional divisions: Fiscal Services, Information Technology, Revenue, and Accounting. On the surface, our primary purpose is to provide financial and information technology services to the frontline public serving departments. However, we are also charged with the most paramount objective of a public agency; that is to provide prudent custodial services of publicly entrusted resources. Treasury, Debt Management, Budgeting, Internal Control, Property Control, Purchasing, and Annual Financial Reporting are all examples of Administrative Services' responsibility to be the financial steward for the entire organization. Although many of the services provided by the Department, including payroll, accounts payable, print shop /mail room, purchasing /warehousing, and IT, are provided in support of other City Departments, in some cases the Department serves the public directly. Examples of services provided directly to the public by the Department include: licensing, cashiering, water billing and maintenance of the City's Web Site. Accounting Staffing: 8 plus 1.5 FTE $1,051,469 Information Technology Staffing: 17 plus .5 FTE $2,722,902 Mission and Goals Fiscal Services Staffing: 16 plus 2.82 FTE $1,754,479 Resource Management Staffing: 3 $500,362 TOTAL $7,449,877 56 Positions, plus 6.42 FTE Revenue Staffing: 12 plus 1.6 FTE $1,420,665 The Department's Mission and day -to -day activities cover a wide range of functions for the City. The Department's customers consist of a large number of members of the public, as well as every department in the City. A necessary function of the organization is to impose structure and control on a variety of procedures, such as budgeting, purchasing, vendor payables, property control, travel claims, and employee reimbursements. However, it is important for the Department's energy to focus on customer service and innovation, rather than on enforcing restrictions, in the process of achieving the Department's primary goals: • To provide efficient and secure cash management and investment service, emphasizing safety, liquidity, and yield, in that order. • To consolidate, develop, and maintain a dynamic, progressive, service oriented Information Technology System for the City. This includes hardware, software, and networking. It encompasses PC operations, Citywide enterprise database applications, the Geographic Information System, and Telecommunications support. • To maintain functional and cost effective payroll and benefit services. • To develop and maintain a revenue structure, including tax based revenues, fees, and charges, which is fair, equitable, and efficient. • To provide appropriate municipal licensing and regulatory services as directed. • To develop, operate, and maintain reliable and responsive accounts payable and municipal billing /receivables systems. • To provide thorough, accurate, timely, and award -worthy accounting and financial reporting. • To provide responsive and cost effective centralized purchasing, contract administration, and fixed asset tracking services. • To insure security of City assets through an effective internal control program, as well as property control, warehouse, and property disposal systems. • To provide highly responsive and cost effective printing, duplicating, and postal services for all City Departments. • To provide a work environment which encourages an innovative spirit, a customer service orientation, and a strong sense of responsibility by Department employees. • To help ensure coverage of all functions by a dedicated work force through increased cross - training and other appropriate measures. • To develop and maintain the City's facility financing plan. A � A 1Z �a � O A O� S 45 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed Salaries and Benefits $ 4,391,990 $ 5,209,234 $ 4,088,621 $ 5,848,508 Maintenance and Operations $ 1,057,513 $ 992,121 $ 788,797 $ 1,208,450 Capital Equipment $ 205,986 $ 386,101 $ 297,018 $ 392,919 Total $ 5,655,489 $ 6,587,456 $ 5,174,436 $ 7,449,877 A � A 1Z �a � O A O� S 45 ADMINISTRATIVE SERVICES (Continued) Financial Services Every budgetary Division of the Department provides financial services in one capacity or another. Three Divisions composed of Fiscal Services, Revenue, and Accounting, are the primary points of contact for our customers, while the Resource Management Division provides the executive, administrative, and overall coordination of the Department as a whole. The core financial services include licensing, revenue development, tax administration, cashiering, treasury, billing, purchasing, accounts payable, payroll, inventory, fixed assets, budgeting, accounting, internal control, financial reporting, and audit coordination. These vital services support the operations of all frontline departments providing this City's broad scope of Municipal Services. Beyond the basic financial services, the Department also provides financial planning services that are critical to the City's financial stability and, ultimately, the City's ability to provide and maintain the high quality of municipal services our residents have grown to expect. Departmental personnel assist other departments in budgeting, analyzing, and financing major equipment acquisitions and /or infrastructure improvements. Departmental personnel also manage debt financing levels appropriately, balancing the financial burden across the service life of the improvements. The Fiscal Services Division is now the largest in the Department composed of: • Central Cashiering • Accounts Payable • Print Shop Multigraphics • Mail Room and Remittance Processing • Purchasing and Central Warehouse operations • Parking Meter Management. Fiscal Sery ices is a diverse Division of twenty full and part -time employees with primary support functions for the Administrative Services Department and the entire organization. The Division's activities include contract administration, purchasing card program, encumbrances and payments processing, and the purchase of materials, equipment, and services for all City Departments. The Central Warehouse, located at the Corporation Yard is responsible for control management of inventory supplies used by numerous field crews of multiple departments. The Warehouse also assists in property control management and the disposal of surplus equipment. Central Cashiering processes all of the payments made to the City through a multitude of billing systems. In addition, Central Cashiering handles incoming telephone calls and difficult customer service situations. The Print Shop produces thousands of duplicating and multigraphics jobs for an extensive number of customers and works diligently to produce the City's Comprehensive Annual Financial Report (CAFR) and both the Preliminary and Final Budget book sets. Mail Room functions include incoming and outgoing U.S. Postal mail, the folding /insertion of correspondence material, and remittance processing of all City billings. With the additional responsibilities associated with 46 vendor payables, Fiscal Services is now also coordinating the tax reporting of compensation and benefits on behalf of vendors. Beginning its second year with the Division is the Parking Meter Collection Crew. This staff of four was previously assigned to Public Works and is responsible for the maintenance of the City's parking meters, change machines, and meter coin collection activities. Their coin collection duties result in $2.2 million of revenue each year. The Revenue Division is responsible for overall revenue administration, including development, recovery, and analysis. This plays a key role in the City's ability to maintain consistent service levels. Staff members monitor proposed legislative changes that affect the City's revenue streams. They often take a lead role in mounting opposition against bills that have a detrimental impact on municipal services. Staff reviews existing State laws mandating a higher level of service on the City, and pursues reimbursement of the additional costs imposed by the State. As local control over revenue streams has shifted to State and County agencies, Revenue staff's review of the accuracy of subventions from those agencies has increased. The Citywide consolidation of receivables management has increased efficiencies and expanded the Department's customer service responsibilities to its external customers — residents and visitors. Revenue has pioneered and manages a unique program to link like entities across diverse databases to consolidate customer information, and improve customer service and revenue recovery. Included in these customer services is the adjudication of all non - criminal actions taken by City Departments (e.g. parking and administrative citations). Revenue's income contract administration ensures compliance with agreements while maximizing the benefits arising from use of public property. Revenue specific compliance and allocation audits, license inspectors and other revenue enhancement measures ensure a level playing field for all taxpayers within each tax base. In general, the Accounting Division is in charge of the overall accounting, financial reporting and audit management functions as well as the administration and development of the City's operating budget. In this capacity, this division monitors and implements new accounting pronouncements to insure the City adheres to generally accepted accounting practices. This division also oversees several detailed accounting processes including: general ledger maintenance; cash and investment reconciliations; capital asset, debt and assessment district administration; accounting for reserves, designations, grants and other restricted sources. This division acts as the financial historian for the City, accounting for and reporting the City's financial position and results of operation. Consequently, Accounting staff members are often utilized to satisfy information requests, analyze past operation results, as well as estimate the cost of future ventures. Although cities are not required to file income tax returns, cities are not exempt from many federal and state imposed excise tax filings and are required to file many annual compliance reports with various regulatory agencies. Also in charge of City payroll, this Division also coordinates compliance with the Internal Revenue Code and related tax filings concerning employee compensation and benefit plans. 47 ADMINISTRATIVE SERVICES (Continued) Information Technology The Information Technology (IT) Division (formerly know as the M.I.S. Division), has the challenge of taking the lead not only for the Administrative Services Department, but also for the entire City in this critical area. The specific functions at issue involve every Department Division at the most fundamental level. Information and communication technology is a fast moving, ever changing industry that the City must embrace and grow with in order to keep up with the demands of our Community and using Departments. This area of service includes: • Administration of shared computer systems • Internet /Intranet access and firewalls and security systems • E -mail, voice mail, communications systems and devices • Development and administration of the City's Web site • Centralized database applications development and support • Software training • Personal computer purchasing, support, and network administration • Geographic Information Systems development and support Network administration and support includes telecommunications and Wide Area Networking (WAN). The Telecommunications Section operates and maintains the City telephone systems, including City owned and operated pay telephones, and provides LAN and WAN support of hardware and software components required to provide connectivity to all City remote sites. The IT Division also supports a complex Geographic Information System (GIS) designed to provide analysis and mapping capabilities. The Future The Administrative Services Department continues to take the lead in providing automation solutions and communications services to all City Departments, the City Council, and members of the public. City LAN/WAN infrastructure, personal computers and software applications will continue to be upgraded to take advantage of the latest in hardware and software technologies. Voice and data technology solutions will continue to be implemented between all City remote sites in order to provide faster, more efficient, cost effective connectivity. There will be a concentrated effort to increase bandwidth to remote sites using more efficient wireless technologies. Wireless technologies will become more widely used by City employees assigned to work outside of the office. Maintenance and other field personnel will become more reliant on the ability to access remote resources via wireless technologies. Applications including: core accounting, billing, and HRM modules; GIS; document imaging and management; and Interactive Voice Response (IVR) systems will continue to be developed and expanded. Updated Aerial photography of the entire City and surrounding areas will be incorporated into the GIS system along with light detection and ranging (LIDAR) data that will provide 3 dimensional geographic display and analytical capabilities. The Internet and Intranet Web sites will continue to be developed and expanded with an emphasis towards providing an advanced, more efficient means of communicating and presenting information to citizens and 48 employees. Additionally, the focus on development of these Web sites will be geared towards implementing sophisticated, interactive solutions and tools designed to provide better, more efficient customer service. The IT Division is committed to providing enterprise solutions to all City departments. Careful consideration is given toward developing open systems that are able to readily communicate and share information. The move is toward developing and implementing systems that are "user friendly." The Division also maintains a strong commitment towards providing training and guidance to all City Departments in related information systems areas. Service Indicators 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Projected Budget Administered $186,822,264 $189,686,214 $252,769,561 ** $208,924,710 �.d f0 Warrants Issued 17,613 16,443 17,500 19,500 < Value of Payments Processed $118,250,333 $117,981,345 $123,050,000 $129,500,000 t Checks Deposited 213,170 182,557 180,500 178,900 M' Value of Currency Deposited $2,688,069 $2,912,678 $3,098,734 $3,042,310 s Annual Payroll & Benefits $88,156,993 $100,311,429 $100,389,842 $108,494,514 Paychecks Processed 27,275 27,150 27,400 27,700 Purchase Orders 669 636 640 650 Images Printed 3,961,101 4,443,911 4,046,245 4,376,227 Printing & Binding Jobs 4,333 4,854 4,354 4,555 Mail Room Volume 213,557 239,872 217,269 220,000 Municipal Statements 179,047 178,417 205,000 205,000 Accounts Receivable Billings 5,337 4,687 10,000 10,000 New Business Licenses 5,294 5,530 4,800 7,000 * ** Business License Renewals 14,192 15,233 13,000 13,000 Dog Licenses Issued 2,078 1,525 3,600 5,200 Parking Citations Processed 73,014 73,012 75,000 75,000 Administrative Citations Processed 8,047 7,223 5,000 5,000 Ajudications 3,468 3,321 3,200 3,600 Business Tax Revenue $3,458,165 $3,848,381 $3,300,000 $3,465,000 Business Tax Notices 9,643 6,891 13,000 41,000 * * ** Transient Tax Revenue $9,215,862 $9,791,057 $10,738,983 $11,275,932 Transient Tax Notices 2,839 2,768 3,100 3,100 Film Permits - - 140 155 Contracts Administered - - - 48 City Owned Telephone Units 835 865 835 840 Service & Repair Calls 1,944 1,953 1,911 1,900 Average Monthly Calls 79,135 81,358 82,967 84,000 * Budget Administered is limited to gross actual expenditures for FY05 & FY06; while FY07 & FY08 represent the gross budget administered (including internal service charges). Increase due to unusually high CIP activity. "* Increase due to new field license inspector. * * *' Prior to FY08, only Business Tax Notices sent to new businesses were calculated; FY08 also includes notices sent to businesses renewing their business license. 49 POLICE DEPARTMENT o = v � o a 6111 The Newport Beach Police Department is committed to providing our Community with the highest quality police services possible to maintain the quality of life that is cherished by those who reside, work, and visit here. Our mission is to: Respond positively to the Community's needs, desires, and values and in so doing be recognized as an extension and reflection of those we serve. Strive to provide a safe and healthy environment for all, free from violence and property loss resulting from criminal acts, and injuries caused by traffic violators. Manage inevitable change and welcome the challenge of future problems with creative solutions which are financially prudent and consistent with Community values. Leadership - required in all that we do Neighborhood Watch and Community Outreach will remain a focus of the Department's efforts this year. In order to better respond to the needs of the Community, our Neighborhood Watch Program will be evaluated forways in which to increase Community participation and the substance of that participation. A redefinition of the neighborhood watch networking process will become an important tool in the implementation of this particular objective. Ways in which to tap into homeowner's association websites and email systems for a two -way information sharing process will be studied. Additionally, quarterly area meetings will attempt to increase the participation of all interested residents instead of only Block Captains. Recruitment continues to be a high priority for our organization as well as other agencies throughout the profession. This issue will continue as one of our top priorities. In past years we formalized a Recruitment Committee to review and contribute to a recruiting strategy. The adopted strategy will continue. Leadership Development and Succession Planning continues to be a high priority for our Organization. As our recruitment efforts become more successful and we continue to fill employee vacancies, it becomes increasingly Recruiting open house for prospective employees important to develop those new employees as well as existing ones for future promotional opportunities. The Department will reinstitute the highly successful Leadership Development program. As part of our ongoing succession planning, this program will be open to everyone with an emphasis on identifying and developing future Department leaders. The curriculum will be revised to meet the current challenges of modern law enforcement. New Employee Emersion will be a fundamental objective during this fiscal year. As our recruitment efforts begin to pay dividends, the need for our new employees to feel at home and to move more efficiently throughout the Department and overall City organization is important. An immersion program will be developed in which new employees will be exposed to different Divisions and work units within the Police Department as well as different areas of City government. It is the intent of this program to make our employees as familiar as can be with all facets of local government in order to serve our citizen's more effectively. Problem Oriented Policing (P.O.P.) will continue to be an important aspect of this Organization's efforts to interact with the Community. New training will be developed in accordance with today's accepted problem solving techniques and delivered to the Department's P.O.P. officers, supervisors or anyone else interested in the training. The Department will also investigate alternate software applications so that the P.O.P. process can be better automated within the police facility and more importantly, in the field. Capital Projects will occupy the attention of a number of our staff during the coming year as we complete the upgrade of certain areas of our 34 year old facility and focus on it's capability to sustain operations in an emergency. 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed Salaries and Benefits $ 28,913,512 $ 32,049,368 $ 23,736,230 $ 34,357,561 Maintenance and Operations $ 5,035,792 $ 5,316,408 $ 4,811,969 $ 6,693,543 Capital Outlay $ 543,361 $ 806,260 $ 231,291 $ 412,770 Internal Service Fund $ - $ 600,707 $ 701,000 $ 514,000 Total $ 34,492,665 $ 38,172,036 $ 28,779,490 $ 41,977,874 Sworn Personnel 148 148 148 148 Non -Sworn Personnel 89 90 92 92 Total Personnel 237 238 240 240 0 POLICE DEPARTMENT s o d � Q � 52 Chief of Police Staffing: 10 plus .49 FTE $1,876,877 Professional Standards D.A.R.E. Media Relations Environmental Services Community Relations Legal Affairs Crime Prevention Citizen's Academy Patrol 97 plus 4.29 FTE Watch One Watch Two Watch Three Jail Unit S.W.A.T. Bicycle Unit Canine Unit Disaster Planning Helicopter Program (A.B.L.E.) Volunteer Program Reserve Officer Unit Hostage Negotiation Unit Resource Distribution Traffic Staffing: 32 plus 3.74 FTE $4,885,727 Traffic Services Accident Investigations Motors Parking Control Crossing Guard Traffic Education Animal Control Special Events Planning Support Sery ices Staffing: 55 plus 6.84 FTE $10,155,564 Alarms Officer Communications Video Unit Property Unit Polygraph Unit Fiscal Services Records Section Training Section Range /Armory Computer Systems Planning /Research Facility Maintenance Electronic Equipment Repair Fleet Maintenance Staffing: 2 $1,622,476 Parts Inventory Automotive Service Equipment Replacement Collision Repair Vehicle Maintenance Detectives Staffing: 44 plus .19 FTE $7,095,939 Detective Services Crimes Persons Property Crimes Juvenile /Sex Crimes Narcotics Section Economic Crimes Crime Scene Investigations Photo Unit Vice /Intelligence Crime Suppression Unit Crime Analysis Auto Theft Task Force (OCATT) School Resource Regional Narcotic Suppression Program (R.N.S.P.) (Figures do not include Asset Seizure or other grant funds) The Police Department is comprised of the following divisions of responsibility — The Office of the Chief of Police, Patrol/Traffic, Detectives, Support Services, and Fleet Maintenance. Under the leadership of Chief Bob McDonell, the Department's management team includes three Captains and nine Lieutenants. Of the Department's authorized strength of 148 sworn officers, over 90% of them are assigned to field or investigative positions. Personnel related costs make up 83% of the Police Department's total budget, with the remainder devoted to training, technology, office equipment, supplies, and other operational costs. Detective Fleet 17% Maint. 4% Traffir 12°i Pah 38% COP 5% Support Services 24% FY 08 Budget by Division (NAFF & Grant Funds Not Included) Traffic 12% Patrol 56% Detective COP 24% 5% Sworn Officers by Division Support Services 3% New Department members take the Oath of Office to serve the Community Service Indicators Part One Crimes' Adult Arrests Juvenile Detentions Crime and Miscellaneous Reports Calls for Service CAD Events Domestic Violence Cases Investigated Number of Cases Assigned for Investigation Number of Cases Assigned per Detective Value of Property Recovered Field Interviews Conducted False Alarms Handled Animals Impounded Animal Control Citations Issued Fatal Traffic Collisions Injury Traffic Collisions Property Damage Collisions Vehicle Code Citations/Warnings issued Other Citations Issued Parking Citations Issued 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Projected 3,028 3,045 3,081 3,062 3,079 2,999 3,021 3,110 251 264 289 277 10,079 10,182 10,278 10,301 58,039 62,429 66,816 66,819 82,945 83,343 83,741 84,139 276 245 237 272 4,343 4,317 4,396 4,291 310 309 318 308 2,720,795 3,832,647 3,400,042 3,331,433 5,912 4,965 4,501 4,474 Unavailable 3,727 3,647 3,516 550 558 524 562 926 886 885 846 5 4 7 6 542 508 553 557 953 861 864 840 17,553 18,151 18,401 18,288 3,669 3,578 3,249 3,487 72,665 74,780 71,561 71,898 Part One are the eight most serious crimes (Homicide, Forcible Rape, Robbery, Aggravated Assault, Burglary, Larceny -theft, Auto Theft and Arson) as defined by the FBI in the Uniform Crimes Reports. f0' O A S n ovt FIRE DEPARTMENT o � a �,.4 � o 54 To reduce the loss of life and property from fire, medical, marine, and environmental emergencies through education, prevention, hazard reduction, and response The mission statement above provides the framework for all of the goals and activities of the Newport Beach Fire Department. The Department's 154 full -time employees and over 225 seasonal employees provide 24 -hour protection and response to the City's residents and visitors. • Identify and reduce fire and environmental hazards that may threaten life and property. • Provide a safe, effective and expeditious response to requests for assistance. • Develop an adequately trained work force to effectively perform their duties. • Participate in the community development planning process to improve fire and life safety. • Encourage department personnel to assume leadership roles in the organization. • Plan for response to natural and man -made disasters that affect the community. • Educate and train City employees and the community to assist them in maintaining a safe environment. 2007 -2008 Emphasis With strong roots and a long history, the Fire Department continues to develop and enhance its mission of superior safety, service, and professionalism. The department focuses on effective and efficient methods for the delivery of public safety services to the community of Newport Beach. This is the expanded level of assistance Newport Beach citizens have grown to expect. The Fire Department continues to build on past successes and strives to meet the future demands of a unique and expanding community. Today, the Newport Beach Fire Department places emphasis on Emergency Services, Fire Prevention, Disaster Preparedness, and the Training and Education of those who serve as well as those to be served. Emergency Services The Newport Beach Fire Department strongly believes in offering our community the highest level of service. In order to provide the highest level of emergency services, the Fire Department maintains one Operations Division, which encompasses fire, emergency medical service, and lifeguard responders. Our fire emergency responders are strategically located in eight fire stations around the city, ensuring they can respond rapidly to emergency situations. A focus for 2007 -2008 will be finishing the construction and begin training classes at our new fire station in Santa Ana Heights. The new facility will include a firefighter training facility and community training classroom. These additional facilities will allow the department to not only enhance our existing emergency operations for Santa Ana Heights, but also improve operations throughout the city with enhanced firefighter training. In addition, the community classroom will allow us to offer additional public safety classes to the residents in a variety of subjects. Our emergency medical service responders rely on advanced equipment to save lives, including Automatic External Defibrillator (AEDs), paramedic monitors that easily identify heart attacks, and devices that monitor blood sugar levels. New modular ambulances were acquired which offer more patient treatment room and easily accommodate advanced medical equipment. Our "Fire Medics" program is currently utilizing a medical information system, called Aculert, where our residents can provide medical and family contact information prior to an emergency. With the swipe of a Driver's License or special identification card, paramedics can quickly access information via handheld computer. Ocean Lifeguards - Our Ocean Lifeguards protect over 10 million beach visitors on Newport Beach's 6.2 miles of ocean and 2.5 miles of bay beaches with preventative actions and medical assistance. Every day of the year, lifeguards ensure the safety and provide customer service to the visitors on the beach, boardwalk, piers, and in the ocean. The Lifeguard Division provides the City of New- port Beach with the highest level of lifeguarding services and is recognized as an Advanced Agency by the United States Lifesaving Association. All of our emergency response personnel are highly trained and strive to ensure the safety of our community. Fire Prevention The goal of the Fire Prevention Division is to safeguard the community from fire and environmental hazards through programs providing for adherence to fire regulations, public education, and hazard mitigation. To meet this goal, the Division's responsibilities include: �5 FIRE DEPARTMENT (Continued) Fire Safety Inspections - It is the duty of the Fire Prevention Division to inspect all commercial occupancies including: retail stores, business offices, high -rise buildings, educational facilities, apartment buildings, residential care facilities and acute care facilities such as hospitals, surgery centers and so forth. Private residences are inspected at the request of the individual property owner. The condition of built -in fire protection equipment, interior finishes, exits, operation of exit doors, exit signs, fire doors, emergency lighting, interior and exterior storage, and hazardous materials are inspected. On site visits and one -on -one discussions with a property owner or manager are an important factor in eliminating potential fire problems. Over 6500 commercial occupancies are included in the Division's inspection program. The majority of which are inspected by the Department's firefighters. Highly technical inspections, such as schools, care facilities, hospitals and similar institutions are inspected by Fire Prevention Specialists from the Fire Prevention Division. Plan Review -The Fire Prevention Division reviews all plans in conjunction with the building department. The review of building plans provides the Fire Department with an opportunity to verify that fire and life safety requirements are being met prior to the completion of the building. Pre - submittal Review - As a service to our customers, the Fire Prevention Division provides consultation services to architects, developers, contractors and property owners prior to plan submittal. This review provides an overview of fire and life safety regulations which may affect the proposed building and the surrounding area. By providing this service, we have greatly reduced the amount of corrections that need to be made by the applicants and, therefore, we have reduced our plan check turn around time to less than two weeks. Fire Investigation - The Fire Department investigates all fires to determine fire cause. The Fire Prevention Division coordinates the efforts of the Operations Division's six on -duty fire investigators. Our six professional fire investigators work in conjunction with the Newport Beach Police Department and assist in criminal investigations by determining the origin and cause of fires. An additional focus is on identifying factors that can be used to lessen the number of fires in the future. Data from fire investigations can help enhance inspection procedures, publiceducation programs and fire suppression activities. Special Fire Protection Areas — The Fire Prevention Division provides inspection services to all of the residential properties within the City's wildland interface areas including: Newport Coast, Corona Del Mar, Mission Bay Canyon, plus the Eastbluff and Westcliff communities. New developments, including all newly annexed property in Newport Coast, comply with the City's Fuel Modification Standard. This standard specifically identifies the type and quantities of largely non - combustible vegetation that can be planted at the time of new construction. The standard also contains provisions for annual maintenance and upkeep of the designated properties by property owners or homeowner's associations. Asecond standard for Hazard Reduction has been adopted to address the needs of existing residences, such as those outside of Newport Coast. The Hazard Reduction Standard allows homeowners and fire prevention specialists to work with existing landscapes to create defensible space between the homes and wildland areas, which enables firefighters to better protect the threatened properties. 56 All Special Fire Protection Areas are inspected annually to ensure compliance. Our staff is also assisted by the firm of Dudek and Associates who provide technical expertise and assure compliance with all State and Federal wildlife regulatory agencies. Hazardous Materials — As a member of the Orange County Certified Unified Program Agency (CUPA), the Newport Beach Fire Department is responsible for the collection of hazardous materials disclosure information and business emergency planning. This information is collected annually from all businesses within the City of Newport Beach that handle or store more than 55 gallons, 200 cubic feet or 500 pounds of hazardous materials. Approximately 150 businesses participate in the program. Disaster Preparedness Due to its geographic location, the City of Newport Beach is vulnerable to a multitude of different threats, including earthquakes, fires, floods, terrorism, pandemic and tsunamis. Therefore, disaster preparation is a high priority for the Fire Department. The Disaster Preparedness Section of the Training Division is committed to providing education and training to all City employees and residents. The City's Emergency Operations Center (EOC) is regularly activated for drill scenarios and we continually enhance our response capabilities. Our City employees receive regular preparedness and safety training through the Emergency Response Team (ERT) program. In addition, all full -time City employees are certified Disaster Service Workers, trained and ready to respond to any large disaster or emergency. Disaster training for the residents within the City also continues to thrive through two successful programs, the Community Emergency Response Team (CERT) program, and the newly created Neighborhood Disaster Preparedness Course. The CERT program, which is currently being offered four times a year, teaches residents how to prepare, be self- sufficient, and respond to any large disaster. The Neighborhood Disaster Preparedness Course teaches residents basic disaster preparedness, family emergency planning, and home safety measures. This three hour course is offered to any requesting community group or neighborhood OK) AV association. Additionally, basic disaster preparedness presentations are given to any requesting business, school, or CER community group within the city. _ The next step in disaster preparedness is continued public outreach to all 165 homeowner associations in the city, with the ultimate goal of creating a Neighborhood Disaster Response Team with trained citizen CERT members in each community. The neighborhood teams will perform initial critical functions following a large disaster until emergency personnel arrive. These measures will save lives and allow emergency personnel to focus their efforts on other critical life saving functions. This is one example of how residents and the City are working together as "Partners in Preparedness" to achieve an all encompassing disaster preparedness plan. 57 FIRE DEPARTMENT (continued) O O O v O Q 58 Training and Education The Newport Beach Fire Department continues to strive for excellence in training and education for both department employees and our community. Department employees participate in a combination of classroom instruction and field drills. Newport Beach Fire and Lifeguard personnel consistently receive the highest scores in the training classes completed. The Department Training Program concentrates on excellence and effectiveness in our provision of life saving services. As previously mentioned, the construction of the new fire station and training facility in Santa Ana Heights will allow us to improve firefighter training and community education programs. Emergency responders will continue training on the National Incident Management System (NIMS) to complywith the new Federal Regulations. Additionally, firefighters will continue training for response to Hazardous Materials and Weapons of Mass Destruction incidents which will sustain each employee's knowledge base at a high level. The combination of personnel growth and individual skill development unites to form a uniquely effective department. The Fire Department also provides excellent community education. Department members provide safety instruction and training to school age children through the Junior Firefighter, the Junior Lifeguard, and Lifeguard Cadet Programs. Lifeguard personnel have continued our "CPR in the Schools, Working Together to Save Lives' program. Each year in this program, over 700 Newport-Mesa high school safety education students are taught CPR and other safety instructions. The popular Public Safety Day Open House, held each October during Fire Prevention Week, gives Department personnel the opportunity to demonstrate our many skills developed through extensive training. It also provides an opportunity to interact with our community members, allowing for in -depth safety education. 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed Salaries and Benefits $ 20,958,710 $ 22,638,749 $ 16,980,432 $ 24,629,190 Maintenance and Operations $ 3,469,093 $ 3,858,731 $ 3,193,612 $ 4,656,329 Capital Outlay $ 173,608 $ 323,666 $ 434,377 $ 302,335 Total $ 24,601,411 $ 26,821,147 $ 20,608,421 $ 29,587,854 General Tax Revenue $ 20,924,636 $ 22,960,322 $ 17,794,490 $ 26,002,544 Other Revenue $ 3,676,775 $ 3,860,825 $ 2,813,931 $ 3,585,310 Total Revenue $ 24,601,411 $ 26,821,147 $ 20,608,421 $ 29,587,854 Non -Sworn Personnel 14 15 16 16 Sworn Personnel 134 135 138 138 Total Full -time Personnel 148 150 154 154 Seasonal - (FTE) 30.78 30.78 31.77 33.13 Under the direction of Fire Chief Steve Lewis, the Fire Department is divided into five divisions: Safety Operations Staffing: 130 plus 21.39 FTE $23,009,134 Fire Suppression EMS Response & Transportation Ocean Safety /Beach Rescue Dive Team Rescue Boats Hazardous Materials Response Hazardous Situation Mitigation Fire Prevention Inspections Administration Staffing: 8.5 plus 1 FTE $1,448,977 Apparatus & Equipment Budgeting Communications Facility Management Mapping Personnel Purchasing and Procurement Training Staffing: 7 plus 10.74 FTE Fire Training Lifeguard Training Junior Lifeguard Program Lifeguard Cadet Program Junior Firefighter Camp Community Relations & Education Public Information Disaster Preparedness Emergency Management C.E.R.T Program Community Disaster Preparedness Emergency Medical Services Staffing: 1.5 $2,025,648 EMS Financial Management Continuing Education Employee Health Exposure Control Medical Quality Assurance Medical Disaster Planning Fire Prevention Staffing: 6 $1,218,289 Fire Code Enforcement Hazardous Materials Regulation Hazardous Vegetation Management Knox Box Access System Fire &Arson Investigation Fire Code Plan Checks Fire Code Building Inspections Special Event Management Service fee programs include the paramedic service fee program, and emergency ambulance transportation. Other service fee systems in place include: fire permitfees, the Fire Medics program, and the Junior Lifeguard program. Users of any of these programs offset their end result costs. Service Indicators Fire Responses Medical Responses Fire Medics Membership Water Rescues Lifeguard Medical Aids Boats in Distress Preventative Actions Fire Alarm Responses Other Emergency Responses Public Education Contacts Fire Inspections New Construction Inspections Beach Attendance 0 r A p W' 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Projected p 228 214 175 300 5,568 5,382 5,772 5,900 A 5,800 5,840 6,529 7,000 r) 4,384 2,257 3,916 6,000 7,348 8,905 5,291 7,700 96 91 128 100 118,190 70,862 84,949 125,000 737 693 791 1,250 2,296 2,736 1,671 3,000 4,369 4,402 4,500 8,000 4,550 6,470 7,000 6,600 Not available 801 917 1,100 8,309,790 6,758,342 7,580,988 10,000,000 00 PLANNING DEPARTMENT o � v 60 To guide community development in the public interest as a responsive, responsible, and knowledgeaable planning team. Department Overview The Planning Department prepares and implements both short and long -term strategies that promote City Council priorities for enhancing the physical environment, the character and quality of neighborhoods, and the overall experience of the Newport Beach community. Planning Department team members strive to provide superior service to residents and property owners and professionals in the development community. Planners are responsible for interpreting and applying the provisions of the General Plan, Zoning Code, Local Coastal Program, and related codes; planners work with customers in determining appropriate uses of properties, in identifying suitable site plan configurations, and in designing buildings of size, scale, and character consistent with traditions of excellence that define Newport Beach. Planners provide the staffing resources for the Planning Commission and the City Council for a variety of land use and development projects requiring public hearings pursuant to the Newport Beach Municipal Code. Program managers in the Community & Economic Development division develop and implement the City's economic development policies and programs, including the Strategic Plan for Fiscal and Economic Sustainability. They are the staff liaison to the Economic Development Committee, four Business Improvement Districts (BIDS) and many of the City's business associations and community -based organizations like the CdM Farmer's Market and the Newport Beach Film Festival. The program managers administer the City's community development programming, such as the Community Development Block Grant. Budget Highlights In the fall of 2006, voters approved the City's Comprehensive General Plan update. The General Plan serves as the statement of official policy for Newport Beach's long term physical development. The update process occurred over several fiscal years and the implementation of the Plan's polices is now in progress. The Planning Department budget for 2007- 2008 reflects funding for special projects related to implementation of both the General Plan and Local Coastal Program. A comprehensive update of the Zoning Code to make it consistent with the new General Plan was funded as a budget amendment in fiscal year 2006 -2007; Planning Department programs for gaining California Coastal Commission approval for both an amended Coastal Land Use Plan and for the Implementation Plan for the Local Coastal Program consistent with the General Plan are included in the 2007 -2008 budget. Implementation of the City's Housing In -lieu fee is anticipated in calendar year 2007 and an allocation for consultant work needed to implement the program is included in this year's budget. Consultant work required to finalize the update of the General Plan Housing Element and gain State certification will continue during this fiscal year but was funded in Fiscal Year 2006 -2007. The archiving of Planning Department case files in electronic format was partially funded in fiscal year 2006 -2007 and is funded through fiscal year 2007 -2008 with completion anticipated in fiscal year 2008 -2009. Funding for four new Planning Department staff positions previously authorized by City Council to reduce turnaround time for plan check submittals is included in the 2007 -2008 budget. Two Plan Check Specialists joined the Planning staff near the end of the 2006 -2007 fiscal year. A recruitment to fill two additional Assistant Planner positions will begin during the 2007 -2008 budget year. City of Newport Beach Local Coastal Program 4 Coastal Land Use Plan 9P f± O 61 PLANNING DEPARTMENT (continued) � o A� a Z z o a u O 62 This Year's Objectives • Continue to implement the General Plan • Complete comprehensive Zoning Code update • Gain California Department of Housing and Community Development certification of the updated General Plan Housing Element • Gain California Coastal Commission certification of revised Coastal Land Use Plan • Gain California Coastal Commission certification of Local Coastal Program Implementation Plan • Present Housing In -Lieu fee for City Council adoption • Implement Strategic Plan for Fiscal and Economic Sustainability • Continue to implement department organizational changes to improve customer service and streamline discretionary project processing • Reduce zoning plan check turnaround time to eight weeks or less for first plan submittal • Provide on -site professional development and training courses whenever possible to achieve economies of scale in enhancing planners' expertise • Continue planning case files electronic format archival program • Prepare appropriate land use regulations to minimize impacts of intensive residential occupancies including group homes 2004 -05 Actual 2005 -06 Actual 2006 -07 Estimated 2007 -08 Proposed Salaries and Benefits $ 1,601,550 $ 1,833,686 $ 1,392,814 $ 2,279,202 Maintenance and Operations $ 552,449 $ 1,448,136 $ 606,243 $ 416,117 Capital Outlay $ 27,632 $ 12,374 $ 2,010 $ 57,750 CDBG Fund $ 136,690 $ 187,327 $ 62,918 $ 129,000 Total $ 2,318,321 $ 3,481,522 $ 2,063,985 $ 2,882,069 Planning Activities Overview 2004 -2005 2005 -2006 2006 -2007 2007 -2008 Actual Actual Estimated Projected Application Type General Plan Amendments Code Amendments Use Permits Variances Tract Maps /Parcel Maps Modification Permits Condominium Conversions Lot Line Adjustments Plan Checks Plan Ch 33% 8 10 5 2 15 9 12 14 60 34 39 35 5 2 1 2 62 71 28 24 113 149 100 70 21 40 4 4 10 14 18 8 6,534 6,063 5,786 5,520 Department Functions by Staff Hours Administration Advance Planning Current Planning 33% Planning /Administration Staffing: 20 plus .4 FTE $2,260,700 Planning Commission Environmental Quality Affairs Committee Advance Planning Current Plans & Projects Plan Check Environmental Review GIS /Data & Demographics Regional Planning Activities Housing Economic Development 10% rical Support 9% Economic Development/CDBG Staffing: 3 $621,369 Economic Development Committee Special Project Management & Coordination Peninsula Revitalization /PROP Committee Business Improvement Districts Business Retention /Recruitment CDBG Administration mrbo co 0 a IMF �Ts a a A O � S BUILDING DEPARTMENT c To ensure the quality of life of those who live, work, and visit the City of Newport Beach by promoting safety in the regulation of the construction, use and occupancy of buildings and n by taking a customer oriented approach to finding educated, cost effective solutions. Department Highlights The Building Department ensures the health and welfare of the residents of Newport Beach by regulating the construction, use, and occupancy of buildings and other alterations through the application of standardized model building codes. It continues a tradition that can be traced through recorded history for over 4,000 years in which people have become increasingly aware of their ability to avoid the catastrophic consequences of building construction failures. The Building Department ensures that the standards set by these codes for construction are met through plan review, permit issuance and on -site inspections. The Newport Beach Building Department was a key member of the uniformity effort to develop a uniform set of codes throughout Orange County. Primary Goals QMaintain a management system that effectively and efficiently utilizes resources to achieve the mission of the organization. 0. Continue enhancements to the 'Permit Plus" permit tracking and processing system. • Continue to look for ways to improve service delivery to our customers. • Facilitate compliance with City- adopted codes and State - mandated standards. • Adopt the recently State - adopted 2007 codes which take effect in January 2008. • Train staff on the new 2007 State building codes. • Update correction lists, forms, handouts, standard plans, policies, and inspection standards according to the newly adopted 2007 State building codes. • Continue the quality assurance program for all department activities. • Continue to process permit applications efficiently and complete 90% of all plan reviews within four weeks turn - around goal. • Utilize new technological advances to make customer dealings with the Building Department more efficient and convenient. • Achieve consistency in plan check, inspections, and interpretations through staff training and interaction. • Continue to catalog and integrate the County records as they are received from the County of Orange for Newport Coast for customer and staff access. • Continue to improve plan tracking and storage methodologies to provide access to plans and permits as easy as possible. • Expand our current on -line inspection information to enable for our customers to read inspection comments on line. • Evaluate the feasibility of submitting drawings into plan check electronically instead of paper drawings. 64 Administration* O b Staffing: 5 plus .8 FTE p A $544,702 N, Plan Check/Permits Services I Inspections Staffing: 12 plus 1.13 FTE H Staffing: 12 plus .63 FTE $1,705,781 $1,524,440 TOTAL $3,774,923 29 Positions, plus 2.56 FTE *The Building Department pools clerical support staff for all three divisions under the Administration Division. Budget Highlights The Building Department is responsible for reviewing construction drawings and inspecting building construction to verify compliance with minimum building safety standards required by local and State construction codes. The Building Department budget is divided into three sections: Administration, Plan Check /Permits Services, and Inspections. Projected Construction Activity for Fiscal Year 2006 -2007 Total Construction Valuation: $235,492,000 Number of Plan Submittals: Number of Building Permits: 2,900 Total Inspections: Total Number of Permits: 9,000 $350 $300 0) to 0 $250 C O U $200 C 0 $150 O w U to 3 $too R $50 $0 2,500 35,600 93 -94 94 -95 95 -96 96 -97 97 -98 98 -99 99- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2000 2001 2002 2003 2004 2005 2006 2007* Fiscal Years *Projected 65 BUILDING DEPARTMENT (Continued) Administration Division is responsible for the overall management of the department operation, such as technical and administrative direction to staff, setting policies and standard operating procedures, training, code interpretation, processing building code modification applications, and staffing the Building and Fire Board of Appeals. The division is also responsible for both customer service and assisting other staff members. Administrative staff assists walk -in customers as well as answering phone calls. Phone tasks include helping with inspection requests, relaying inspections times, providing flood zone determinations, taking citizen complaints regarding unsafe and /or illegal construction occurring in their neighborhood, handling public utility releases, and a variety of customers' questions. Customer reviews building records on microfiche and computer The Administration Division is responsible for the archiving of documents, construction permits and plans. These documents are scanned and built into a database for future reference. Staff assists customers such as architects, contractors, real estate agents, appraisers and homeowners conduct research to find archived documents. Customers frequently require access to plans when planning new projects such as remodels, alterations and additions. These documents currently exist in a number of mediums including hard copy or original format, microfiche and now digitally scanned alchemy files. Administrative staff and the Records Specialist are currently Active project plans working on the process to migrate all documents into digital format. The next step in the data migration process is to scan the microfilm plans from previous years. The Records Specialist is responsible for the tracking and maintenance of plans for all departments during plan check and inspection. Plan Check/Permits Services Division processes applications for construction permits and associated drawings and performs plan review to make sure projects comply with all building code standards and requirements before permit issuance. This is accomplished by reviewing construction documents for code compliance for structural, architectural, grading, and fire safety as shown on submitted plans. This service saves the builder from costly changes that could be made during construction and lends the additional expertise of a building department code professional to the project. 66 Building Counter Assistance on the technical requirements of codes is provided over the counter to homeowners, contractors, architects and design engineers by Building Department staff engineers. The Building Department currently offers an over the counter plan check service by appointment. The subtrades plans examiner reviews electrical, mechanical, plumbing, fire alarm and fire sprinkler drawings, and he is available to answer customers' questions. The plan check division is proud of its quality and timely processing of all construction documents and permits and has consistently met the stated goal of 90% of plan reviews within four weeks or less since July 2002. Inspection Division ensures that projects conform to the approved plans as well as the various building codes and local ordinances and that the site conditions are consistent with the plans approved by the City. The Inspection Division is comprised of commercial and residential units, which allows our inspectors in those areas to stay current on types of inspections they are asked to perform. For example, in commercial projects detailed familiarity with disabled access requirements are essential to those assigned to our commercial unit. Similarly, issues in residential inspections relating to habitability are not normally encountered in commercial inspections. Periodic rotation of the inspectors in the residential and commercial units allows them to become familiar with these specific issues. A Building Inspector reviewing plans prior to inspection The commercial inspection unit performs commercial combination inspections which benefits our customers since they are dealing with one inspector for several building trades in addition to the efficiency resulting from handling several trades' inspections by an individual inspector in one visit. "Inspection Services" is beneficial to our customers in that it provides a well- trained third party to oversee the work being provided by their contractor and ensure that the code prescribed, minimum level of safety, and workmanship is maintained regardless of whether the project is commercial or residential. This division is also responsible for conducting Residential Building Records (RBR) inspections at the time of sale for all residential buildings. In an effort to be as efficient and productive as possible, the inspectors utilize wireless lap tops in the field. The inspectors input and maintain all records electronically, which keeps our records accurate and gives the inspector access to permit records while in the field. This real time wireless system offers many benefits to our customers, including instant inspection results on the Concrete placement for the new Internet. Big Canyon Country Club Foundation [IN BUILDING DEPARTMENT v 3 v� a 68 Service Indicators 2004 -2005 2005 -2006 2006 -2007 2007 -2008 Actual Actual Estimated ** Projected ** Plan Submittals 3,059 2,851 2,500 2,400 Permits Issued Building /Combination Permits Issued* 3,793 3,396 2,900 2,800 Grading Permits* 319 306 275 200 Electrical Permits* 2,202 2,637 1,850 1,200 Plumbing Permits* 1,924 1,694 1,350 1,000 Mechanical Permits* 1,366 1,288 1,060 800 Pool /Spa Permits 162 176 160 150 Harbor Permits 87 111 115 110 Residential Building Records Permits 1,572 1,347 900 700 Fire Permits 580 527 390 350 Total Permits Issued: 12,005 11,482 9,000 7,310 Inspections Building Code Enforcement 259 193 185 180 Inspections related to Complaints 1,052 948 950 900 RBR Inspections 1,241 922 625 500 Construction Inspections 34,935 33,846 33,840 30,000 Total Inspections: 37,487 35,909 35,600 31,580 * Combination permit is issued in lieu of sub permits effective November 2006 ** Seasonal conditions and economic factors can significantly affect future projections 2500 2000 N 1500 0 1000 U 500 roll Customer Activity 2006 -2007 Jan -06 Feb -06 Mar -06 Apr -06 May -06 Jun -06 Jul -06 Aug -06 Sep -06 Oct -06 Nov -06 Dec-06 Jan-07 Feb -07 ■Total Customers Sere ■Customers Assisted byan Engineer ■Customers who waihW more than 30 minutes 5,000 - 4,500 - 4,000 - 3,500 - v 3,000 - K c 2,500 - �t Fc 2.000 1,500 - 1,000- 500 - 0- Building Department Revenue 96 -97 97 -98 98 -99 99 -2000 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2001 2002 2003 2004 2005 2006 2007' 2008" Fiscal Years 'Projected — Estimated Building Department Expenditures by Function Plan Check / Permit Inspection Processing 40.4% 45.2% Administration 14.4% Salaries and Benefits Maintenance and Operations Capital Outlay Total 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed $ 2,562,909 $ 3,197,202 $ 2,451,468 $ 3,439,822 $ 699,369 $ 590,009 $ 374,552 $ 308,601 $ 30,340 $ 13,950 $ 18,990 $ 26,500 $ 3,292,618 $ 3,801,161 $ 2,845,010 $ 3,774,923 � O A O 69 GENERAL SERVICES o � v h a 70 To provide optimal services and support to the residents, business community, and other City departments through dedication and excellence in safety, performance, and cost containment. Annual Department Goals • Provide exemplary level customer service to the public, other departments, and agencies Coordinate beautification programs throughout the City Improvement and maintenance of community assets • Ensure environmental responsibility with recycling and storm water management programs • Expand supervisory, technical, and safety training for employees • Welcome innovation and creative solutions from all sources Improve disaster preparation and coordination Empower and train employees for greater responsibility Department Overview The General Services Department consists of six divisions that are identified in the organizational chart on the next page. Department functions include residential refuse collection and recycling; maintenance of the City's urban forest, parks and landscaped areas, storm drains, tide valves, beaches, traffic signs, pavement markings, and public facilities; management and replacement of the City fleet of vehicles and equipment; and improvement of public streets and sidewalks. In Fiscal Year 2007 -08, the Department's main objectives will focus on maintaining a high level of service to the public and other City departments. In addition to these objectives, each division within the department has identified key challenges and emerging projects. Resource Distribution The General Services Department is comprised of the following six divisions: • Administration • Field Maintenance • Operations Support • Parks Maintenance / Street Trees Palls • Equipment Maintenance / Replacement 2: • Refuse Collection Operations Support Staffing: 32 plus .75 FTE $5,553,661 Refuse Collection Staffing: 30 plus .5 FTE $6,568,432 Budget Highlights Budget FY 07 -08 Eu pnm Administmtion Administration Staffing: 7 $822,640 Refuse 24% Field Maintenance Staffing: 25 $3,902,166 Equipment Maintenance/ Replacement Staffing: 15 Street Trees / Parks Maintenance Staffing: 18 $5,837,432 tanance Operations Support 21% Fiscal Year 2006 -07 featured several highlights, as the department assumed additional responsibilities and staff continued its efforts in maintaining and improving community streets, parks, and facilities. In addition to these efforts, staff provided a high degree of support in planning and logistics for the City's Pier to Pier, 100 -year anniversary celebration. Also during the year, the Department conducted a considerable amount of research and analysis on developing new environmental programs for the City. This work will allow the Department to pursue several significant work plan items for Fiscal Year 2007 -08. The General Services Department faces several challenges and significant work plan items in the new fiscal year. The Department budget for fiscal year 2007 -08 includes a staffing level of 127 full -time positions. The budget also includes minor increases to maintenance and operational budgets to account for increased costs and expanded responsibilities, including: contract rate increases, increased materials and resources costs, contract landscape and janitorial services for new parks and facilities, and contract tree maintenance in Newport Coast. The budget will again include funding for summer beach restroom maintenance, for contract services to perform the required annual inspection and cleaning of the storm drain system in response to NPDES permit requirements, and to perform City -wide alley sweeping. Each of these services will be performed by private contractors. Ob p p 71 GENERAL SERVICES Key Challenges In Fiscal Year 2007 -08, the Administration Division will take on several new projects and assignments. The division will work on the planning and development of a new hazardous waste Antifreeze, Batteries, Oils & Paints (ABOP) collection facility for residents at the City Corporate Yard. Also, with additional hazardous waste mandates scheduled to go into effect in 2008, the division will examine options for the disposal of certain hazardous waste materials like medical wastes and needles. Other support projects for the division include identifying grants that will allow General Services to develop new improvement projects and services for City parks and beaches. The Field Maintenance Division will continue to work with the Public Works Department to refine the City's concrete, pavement, and sidewalk management plan. Better coordination among departments will help to streamline resources and alleviate any deferred maintenance to hardscape, sidewalks, and streets. This will prove to be crucial as the costs of materials and supplies continue to escalate. Also during the year, the division will evaluate the feasibility of implementing a pilot program for installing rubber sidewalks in areas of the City. This program could lengthen the life of City walkways and help mitigate damage to the City's urban forest. In Fiscal Year 2007 -08, the Operations Support Division will be challenged with maintenance for several new facilities in the City, including the Back Bay Science Center, Newport Coast Community Center, and additional City Hall facilities. Additionally, the Division will work on changes to its service order request system for major repairs and upgrades to City facilities. Doing so will allow for more efficient design and replacement of equipment and furniture. One major challenge that the Department will face in FY 07 -08 is the development of a Compressed Natural Gas (CNG) fueling station at the Corporation Yard. This project will include several aspects, including retrofitting the City's motor fleet shop to accommodate CNG vehicles, designing and installing fueling infrastructure, and replacing the existing fleet with CNG vehicles. Equipment Maintenance Division staff will continue to work with the South Coast Air Quality Management District to identify grant funds and potential firms that design CNG fueling stations. Staff will also develop training programs and review vehicle replacement schedules to account for adding CNG vehicles to the City's rolling stock. In the Parks/Trees Division, staff will assume maintenance efforts at several new locations. The division will also assist with the planning and development of several new parks, facilities, and medians in the City. In addition, the division will increase efforts on the Central Irrigation Controller conversion program. This system, which helps to reduce runoff and uses a "smart timer" control for irrigating landscaped areas of the City, will be increased with the goal of converting all City 11 sites in the next five years Service Level Indicators 2004 -05 2005 -06 2006 -07 2007 -08 $ Actual Actual Estimated Projected Public Restrooms Serviced 56 56 56 56 City Restrooms Serviced 96 96 96 96 City Buildings Serviced 72 71 72 73 Sidewalk Repair (square feet) 50,000 55,000 55,000 50,000 Street Patching (tons of mix) 4,500 4,600 4,600 4,600 Curb & Gutter Replacement 3,000 3,200 3,200 4,500 Street Sweepings (miles) 56,648 56,077 55,491 56,000 Beach Cleaning (tons of refuse) 3,500 3,000 3,500 3,500 Regulatory Signs Posted 3,500 3,000 3,000 3,000 Street and Pavement Marking (feet) 175,000 980,000 1,000,000 780,000 Graffiti Incidents 2,600 2,300 2,200 2,500 Refuse (number of homes) 30,621 36,630 36,630 36,630 Refuse Collected (tons) 45,626 45,626 45,626 46,000 Number of Parks Maintained 48 54 54 56 Number of Landscaped Acres Maintained 14,550 560 560 607 Number of Trees Trimmed 4,100 14,890 15,550 15,550 Number of Vehicles Served 48 3,563 3,600 3,800 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed Salaries and Benefits $ 8,155,132 $ 8,891,618 $ 6,819,673 $ 9,867,670 Maintenance and Operations $ 10,120,550 $ 10,800,632 $ 8,417,662 $ 12,844,561 Capital Outlay $ 39,835 $ 37,928 $ 41,447 $ 62,100 Internal Service Funds $ 3,565,439 $ 4,228,344 $ 2,970,761 $ 3,954,068 Total * $ 21,880,956 $ 23,958,522 $ 18,249,543 $ 26,728,399 Personnel 124 124 125 127 * Includes Equipment Maintenance and Replacement Fund Expenditures (Internal Service Fund) � b to O A n �a � O A O S LIBRARY SERVICES z o z d 74 To serve as the cultural, educational, and informational heart of the City through the Central Library and branch libraries Department Overview Library Services seeks to serve the Newport Beach community as its most valuable resource for educational, informational, and cultural enrichment. The Central Library and its three branches, Balboa, Corona del Mar and the Donna & John Crean Mariners Branch, offer a diverse range of informational resources, special programs for every age, and public services such as the Summer Reading Program and Adult Literacy. The Newport Beach Public Library connects over 880,000 customers with its informational resources. Over 1.5 million items are checked out of the Library system each year and electronic resources are available 24/7. A City Council appointed Board of Library Trustees plays a critical role in the Library's service provision. The Arts and Cultural Services Division of the Library and the City Arts Commission provide a variety of arts programs and events for the community. Making the Connection in 2006 -2007 During the 2006 -2007 year, the library focused on making new connections with library customers, both through the latest technology and personal communication. Technological connections included updating the Library's website (www.newportbeachlibrary.org) with a fresh new look and a complete online calendar of events that includes search and email features that make it easy for library customers to stay connected to library events and news. E- commerce capabilities were introduced on the website, making it possible to pay fines and fees online. The addition of new databases, including Standard & Poor's NetAdvantage, and remote access for Morningstar, has resulted in database hits of over 15,000 per month. The newly added Overdrive Downloadable Books connection has already resulted in downloads of more than 3,000 audio and e- books. LibraryA Go Go spreads the word about new services Computer training classes for adults were expanded and new classes for children and literacy students were introduced, using the high -tech training room at the Central Library. To make a personal connection with new customers, the library launched the very successful Library- A -Go -Go program last summer. Loaded with Library information, sunscreen and paperback books, enthusiastic staff members took to the streets, parks and beaches to introduce Newport Beach residents and visitors to Library resources and services. Outreach to local schools and PTA groups was increased with more frequent presentations by children's and teen librarians. A Speakers Bureau will begin making presentations to community groups in the spring. The community's enthusiasm for the new Donna & John Crean Mariners Branch Library is evident with a 40% increase in library use. The Balboa and Corona del Mar Branches were painted and re- carpeted, and all libraries had their collections weeded and updated in 2006 -2007. The Central Library opened the Childrens' Sun and Sea Discovery Garden outside the Children's Room and children received their own special "Kid's Card." Creating New Connections in 2007 -2008 In 2007 -2008, the library will continue to emphasize making the connection with customers by implementing several new programs and services including "Books by Mail" and the Speaker's Bureau. The Library will continue to keep pace with electronic technology by adding new databases and other services that will assist our customers in procuring business, educational and entertainment information. Plans to relocate the Corona del Mar Branch to the new Oasis Center building and adding "Concierge Library Service' to the Newport Coast Community Center will make connecting to the library easier than ever for Newport Beach residents. City funds are augmented by support Opening the Children's Sun and Sea Discovery Garden from the Friends of the Library, the Newport Beach Public Library Foundation, the Literacy Advisory Council, State and Federal grant funding, donations from local service clubs and in -kind services from businesses. Library Services Staffing: 40 plus 26.06 FTE $5,797,658' Information & Reference Services Youth Services Central Library and Branches Adult & Youth Programming Literacy Services Support for Board of Library Trustees Friends of the Library Newport Beach Public Library Foundation Literacy Advisory Council includes Ackerman Fund Arts & Cultural Services Staffing: 1 $178,389 Three Annual Juried Art Shows City Hall & Library Galleries Arts & Cultural Grants Concerts in the Park Cultural Arts Programs Support for City Arts Commission Sister City Association A m A O � LIBRARY SERVICES (Continued) Department Services The Library, under the direction of the Board of Library Trustees, provides comprehensive library services to the community. The Library responds to customer demands for informational and recreational resources in print, electronic, and other non -print formats, and continues to have increased use of resources. A wide range of database and informational services are available from home through the Library's Web page, www.newportbeachlibrary.org. The Library provides a strong literacy program funded in part by donations and state grants. Adult Programs Customers connect to Library resources 2417 The Library offers a diverse range of adult programs, monthly concerts, computer training workshops, special literary and book - related events, the annual Library Foundation sponsored Distinguished Speakers Lecture Series, and other cultural and intellectual activities. The Library also continues its outreach to seniors through Homebound Service and book clubs and other services at OASIS. The addition of downloadable books and a variety of business and educational databases are have made the library a 24/7 connection for the community. Children and Teens The annual Summer Reading Program, �w Christmas Puppet Show, Craft Club, ` children's bookclubs, children'sstorytimes, afterschool activities, and teen art and poetry programs, computer training for kids, and other events for children and teens continue to draw an enthusiastic ��AWg response and establish the Library as an important asset to lives of young people in this community. The Children's Sun and Sea Discovery Garden gives a new Children's Summer Reading Program dimension to the Children's Room at the Central Library and offers the perfect spot for enjoying summertime reading and outdoor storytimes. In addition, the Library has added several new databases, including Kids InfoBits and the Testing and Education Reference Center. 76 Arts and Culture The Arts & Cultural Services Division supports the City Arts Commission and the Sister City Association. Art activities include exhibits at the Central Library and City Hall, juried art shows, Concerts in the Parks, and Shakespeare by the Sea. The City Arts Commission annually awards Cultural Arts Grants to local arts organizations for performances in schools, OASIS, and the Library. The division budget provides funds for the Sister City Association to support the student exchange program, international festivals and visits from Sister City delegations. Service Indicators Library Circulation of Materials Customers Served Reference Questions Asked Program Attendance Remote Online Users Juried Shows /Art Exhibits Attendance Cultural Programs Attendance Cultural Arts Grants Awards Sister Cities Grant Awards Shakespeare by the Sea 2004 -2005 2005 -2006 2006 -2007 2007 -2008 Actual Actual Estimated Projected 1,475,025 1,443,078 1,652,500 1,750,000 885,852 874,854 953,468 985,000 168,999 170,972 187,776 195,000 34,949 44,286 38,040 40,000 202,551 222,806 278,000 300,000 1,850 1,850 1,924 2,000 7,952 7,952 8,634 9,000 $40,000 $40,000 $40,000 $40,000 $11,500 $16,500 $20,000 $20,000 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed Salaries and Benefits $ 3,510,737 $ 3,894,898 $ 2,970,596 $ 4,333,696 Maintenance and Operations $ 1,547,572 $ 1,417,614 $ 978,168 $ 1,463,642 Capital Outlay $ 114,147 $ 100,656 $ 41,155 $ 124,200 Total Expenditures $ 5,172,456 $ 5,413,168 $ 3,989,919 $ 5,921,538 General Tax Revenue $ 3,953,017 $ 4,461,725 $ 3,352,937 $ 5,531,413 Fees for Services $ 32,392 $ 29,292 $ 24,702 $ 22,625 Intergovernmental Reimbursements $ 354,304 $ 426,970 $ 448,904 $ 240,000 Other Miscellaneous Revenue $ 832,743 $ 495,181 $ 163,376 $ 127,500 Total Revenue $ 5,172,456 $ 5,413,168 $ 3,989,919 $ 5,921,538 F n A O'. O 77 RECREATION & SENIOR SERVICES o s a h e � a 78 To enhance the quality of life by providing diverse opportunities in safe and well maintained facilities and parks. We pledge to respond to community needs by creating quality educational, recreational, cultural, and social programs for people of all ages. Department Overview This past year brought new opportunities and programs, all of which helped to continue to promote a strong service oriented Recreation & Senior Services Department with a mission of enhancing the quality of life for the Newport Beach community. In addition, the Department took the lead to deliver the "Celebration of a Century" with a yearlong Centennial Celebration that culminated with a grand finale with music, food, activities, fireworks and fun for 30,000+ attendees at the Newport and Balboa piers! The Department consists of three divisions: Administration, Recreation Services, and Senior Services. Under the guidance of the Department Director, and leadership of the Parks, Beaches & Recreation Commission, the Departmentis responsible for the creation, coordination, and implementation of recreational and social opportunities that serve a population ranging from infants to the very active retired community. In addition, this Department oversees the use of the City's 66 parks and facilities. The backbone of the Department's success is the numerous part-time staff who are out in the field serving the community as well as the hundreds of volunteers who join us on a daily basis to fulfill our mission. Their assistance to our full -time staff creates a solid foundation of a talented, skilled. and service oriented team. While Recreation & Senior Services programs feature many direct, one -on -one services, technology continues to play an increasing role in our ability to provide a wider range of services. The quarterly Newport Navigator is mailed to each home in the City. The Navigator informs residents about each Division's services and available fee -based activities, and is available online. Residents are able to access department program information through our website and register for classes and programs online. With each new season of classes and activities we continue to see a steady increase in online customers. This past year, staff started the "Catch the Healthy Wave" program, which provides incentives to participants who participate in our City recreation programs through the Newport Navigator or OASIS Senior Center. Primary Department Goals for 2007 -08 • Participate in and support efforts for the design and development of Mariners Park, Marina Park, OASIS Senior Center and Coastal Peak Park Continue to provide programs through Catch the Healthy Wave, for both Recreation & Senior Services Divisions Recreation Services The Recreation Division offers a wide variety of programs for tots, youth, and adults. These programs include year -round sports leagues, seasonal swim lessons, and many lifelong learning and fitness classes. Over 150 contractors provide class instruction that is offered in the Newport Navigator (quarterly brochure) or umpires for adult sports leagues. Staff over the past few years have developed a program to audit and receive feedback from contracted instructors and officials who provide programs. Trained staff work in the swim programs, after - school programs, youth recreational sports programs, and day camps. The Division is staffed with eight full -time recreation professionals and up to 50 part-time staff such as recreation leaders, recreation clerks, lifeguards and swim instructors. The Division also includes three full -time field and building maintenance workers, and one full -time department assistant. City operated youth sports programs attract over 1000 children annually and Youth Sport Organization Members such as youth soccer and baseball serve over 6000 youth annually. The Division sponsored annual special events include a Surf Contest, Corona del Mar Scenic 5K, Sunday Fun -Day, Winter Wonderland, Rent -A- Santa, Special Olympics Basketball, Rose Parade Excursion, Arbor Day, Flashlight Egg Hunt, and the Independence Day Parade and Picnic. Over the past three years, many of these programs have tripled in size from enhancing the event and better marketing to residents. Picnic areas, fields, and meeting rooms are available for reservation and staff processes over 1000 requests each year. There are over 30 playgrounds throughout the City for children ages 2 -12. In the coming year this Division continues the refurbishment of some park sites with new playground equipment and play surfaces. The playground maintenance /inspector staff will concentrate on making the existing playgrounds look better and last longer. The Division is also the coordinator of Special Event Permits for the City of Newport Beach and processes over 320 permits per year for events large and small. Recreation Services Goals • Implement the Marketing Plan for the Department • Continue to raise the quality of customer service, instruction and safety in programs which includes more participate evaluations, audits of contracted instructors /vendors and facility audits • Raise the level of service expectations in contracted officials and instructors through audits and trainings • Provide additional Park Patrol services to meet the increased demand • Open and manage a successful balance of programming and operations at the Newport Coast Community Center 79 RECREATION & SENIOR SERVICES (Continued) Senior Services The Senior Services Division is responsible for the operation of the OASIS Senior Center as well as numerous activities that reach out to our senior population. The goal of this Division is to provide older adults with activities and services that enrich their lives, prevent isolation, and provide them with a purpose in life. The Senior Services Division provides a variety of services which enhance the lives of seniors creating positive and successful aging experiences. The Division accomplishes this by providing programs and activities which address the older adults' evolving needs. Staff stays current on programming activities that are most helpful to the senior population by assessing needs and welcoming senior participation in program ideas. The Senior Services Division has been successful at meeting the challenge of the ever - changing needs of older adults and developed activities that are intellectually stimulating and physically active. This coming year the focus of this Division will turn toward the future. The Division has completed a large scale needs assessment which had a very high rate of return. We were happy to see that many community members took the time to fill out the survey. This information will assist us as we look to begin the process of replacing the senior center with a new facility designed to meet the growing and changing needs of our senior population. We are working with an architect to provide us with the first step toward building a state -of- the -art senior facility that will address the needs of both the current and future senior populations. In addition, we will focus on establishing a Health and Wellness program that will motivate seniors to take control of their health. Seniors will be able to participate in activities that will educate them as well as provide incentives to exercise. OASIS enjoys the assistance of over 100 volunteers who work daily in the various programs and activities. These dedicated individuals provide an invaluable service to the Center and log an average 1200 hours of service a month while at the same time they are providing purpose to their lives. The OASIS Senior Center is fortunate to have a dedicated non - profit group, the Friends of OASIS who support the efforts at the Center to offset the costs to provide services. The Friends continue to provide a $50,000 donation to the City for the transportation program as well as with many entertainment expenses. The staff at OASIS have relationships with many community organizations in order to enhance and expand the services provided to the community, which include: South County Senior Services, OC Department of Health, Coastline Community College, University of California Irvine, Hoag Hospital, Braille, Health Insurance Counseling and Advocacy Program, and OCTA. Senior Services Goals • Work with the Architect to insure that the design of a new facility is in accordance with the needs and desires of the currently users and staff • Workwith the newlyformed Newport Beach OASIS Senior Center Building Fund Committee as they begin a capital campaign to raise money to rebuild the Senior Center 80 Recreation & Senior Services Department Administration Staffing: 3 plus .5 FTE $520,849 Front Office and Public Counter Services Fiscal Services Web Site and Online Registration Parks, Beaches & Recreation Commission Support Recreation Services Staffing: 14 plus 20.15 FTE $4,521,962 Youth Programs /Sports Aquatic Programs Adult Sports Special Events City Youth Council Playground /Park Development Special Event Permits Youth Sports Commission Field /Facility Maintenance Facility Management/Reservations Contract Classes Marketing and PR Park Patrol Newport Coast Community Center Senior Services Staffing: 10 plus. 13 FTE $1,017,406 Recreational Programs Educational Classes Congregate and Home Delivered Meals Transportation Program Outreach Services Family Support Special Events Information and Referral Facility Management/Reservations Service Indicators 2004 -2005 2005 -2006 2006 -2007 2007 -2008 Human Services Actual Actual Estimated Projected Recreation Services 11,936 12,628 13,000 13,000 Special Event Permits 321 320 320 320 Facility Rentals 1,128 1,158 1,200 1,400 Recreation Program Attendance 319,546 324,127 325,000 335,000 Co- Sponsored Youth Organizations 194,749 194,722 201,258 202,000 Senior Services Programs /Classes 79,683 77,118 80,000 80,000 Human Services 21,450 18,399 20,000 20,000 Transportation Services 11,936 12,628 13,000 13,000 2004 -05 Actual 2005 -06 Actual 2006 -07 Estimated 2007 -08 Proposed Salaries and Benefits $ 1,978,082 $ 2,431,541 $ 1,904,436 $ 3,018,749 Maintenance and Operations $ 1,896,206 $ 2,071,165 $ 1,771,974 $ 2,963,719 Capital Outlay $ 21,245 $ 26,711 $ 32,489 $ 77,750 Total Expenditures 3,895,533 4,529,417 3,708,899 $ 6,060,218 General Tax Revenue $ 1,911,588 $ 2,381,378 $ 1,456,286 $ 3,110,418 Fees for Services $ 1,910,945 $ 2,066,315 $ 2,165,753 $ 2,860,800 Other Miscellaneous Revenue $ 73,000 $ 81,724 $ 86,860 $ 89,000 Total Revenue $ 3,895,533 $ 4,529,417 $ 3,708,899 $ 6,060,218 �Ts a a s A s. ro O a n A a � O A O PUBLIC WORKS o s a h � 82 To provide quality, cost effective public works and services to the community of Newport Beach Department Overview The Department of Public Works is responsible for the planning, design, and construction of the City's roads, intersections, bridges, sidewalks, storm drains, traffic signals, water quality and environmental improvements, piers, water and sewer systems, street lighting, public building facilities, and parks. The Department also protects public property from unpermitted encroachments, ensures the safe construction of private parties working in the public right -of -way, and reviews plans for residential and commercial development as they relate to the public right of way. Public Works adds quality and safety to our lives through the use of engineered controls and measures such as traffic signals, signage, and pavement maintenance. Corona del Mar State Beach Improvements Santa Ana Heights Fire Station Primary Goals • Meet the current and future needs of infrastructure, services, and resources for citizens and visitors • Coordinate the implementation of Capital Improvement Program projects • Design, construct and sustain the City's infrastructure in an efficient and innovative manner, including replacement, renovation and improvements to roads, bridges, intersections, traffic signals, street lighting, water and sewer systems, water quality measures, neighborhood traffic calming structures, parks, docks, piers, beach facilities, and public buildings • Provide outstanding customer service and engineering expertise to the public, other departments and outside agencies • Promote team spirit and pride through our actions and activities • Encourage continuous employee assessment and development programs • Facilitate the flow of information by maintaining a records management system Utilities Undergrounding The Organization Public Works is comprised of three divisions: Administration, Engineering Services, and Transportation and Development Services. The Public Works Team currently consists of 33 dedicated full time employees. To accomplish the department's mission, staff manages a combination of contract employees, consultants and contractors to deliver projects and services. Administration Staffing: 6 plus .72 FTE $782,413 Engineering Services Transportation & Development Services Staffing: 17 plus 1.26 FTE Staffing: 10 plus .85 FTE $2,418,096 $1,881,874 o a � y p Ob A A p � h F.21 PUBLIC WORKS (continued) Administration provides financial and support management services for the Public Works Department. Areas of responsibility include: • Strategic planning and organizational development • Budget development and administration • Capital Improvement Program plan preparation and management • Contracts administration • Customer service and communications • Permit issuance for encroachments and temporary street closures • Centralized clerical services and process controls • Personnel administration, training, and payroll processing • Records management • Geographical information systems Newport Boulevard Bioswale 84 Engineering Services serves as the City's infrastructure resource to the public and other city departments using engineering expertise to solve problems and improve the quality of life for the community. Areas of responsibility include: • Preparation and maintenance of short and long term master plans for critical public infrastructure systems including water, sewer, storm drain, water quality, pavement management, and building facilities • Capital Improvement Program implementation including planning, design, construction, and inspection of the City's major capital improvement projects • Processing feasibility and environmental studies and various permit applications • Preparation of plans, specifications, cost estimates, and as -built drawings • Right -of -way acquisition • Utilities coordination • Preparation of local, State and Federal funding applications and grant administration • Public outreach through community workshops and publications Ocean Pier Repair Transportation and Development Services serves as the development and traffic engineering resource to promote a safe and efficient transportation system and to help property owners, developers, utilities, other city departments, and public agencies accomplish their goals while protecting the integrity and quality of the public right -of -way for current constituents and future generations. Areas of responsibility include: • Traffic engineering, transportation planning, and coordination of traffic studies • Traffic signal systems operations • Neighborhood traffic calming programs • Subdivision engineering, surveying, and mapping • Plan check and coordination services for residential and commercial building, land use and development activities and projects • Assessment district administration for utilities undergrounding • Permitting for encroachments in the public right -of -way BY! PUBLIC WORKS (continued) O Q G, u 0 we 8G Back Bay Science Center Recent Accomplishments One of the key functions of the Public Works Department is the design and construction of the City's major capital projects. In fiscal year 2006 -2007, several important projects were completed including: • Corona del Mar State Beach Improvements • Balboa Village Phase III • Balboa Island Bayfront Repair • Bay Avenue Area Drainage Improvements • Irvine Terrace, Ocean Vista and Orange Street Water Main and Valve Replacement • Fire Station No. 6 Gender Modifications • Police Department Office Modifications • Police Facility Perimeter Security Fencing • Corporation Yard Building W • Ocean Pier Repairs and Inspection • Jamboree Road Rehabilitation — University Drive to South Bristol Street • Jamboree Road Rehabilitation — San Joaquin Hills Road to Ford Road • Bristol Street North Street Rehabilitation — Campus Drive to Jamboree Road • Placentia Avenue and Hospital Road Street Rehabilitation • Newport Shores Alley Replacement • Sidewalk, Curb and Gutter Replacement Program (2005 -2006) • Citywide Slurry Seal Program (2005 -2006) • Malibu Circle Slope Repair • Newport Boulevard Right Turn Lane at Hospital Road • Newport Boulevard Bioswale 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed Salaries and Benefits $ 3,345,553 $ 3,723,059 $ 2,627,161 $ 4,180,147 Maintenance and Operations $ 692,495 $ 813,474 $ 608,419 $ 871,136 Capital Outlay $ 18,875 $ 24,647 $ 6,455 $ 31,100 Total $ 4,056,923 $ 4,561,180 $ 3,242,035 $ 5,082,383 Key Challenges in FY 2007 -2008 The City continues to undertake an ambitious and wide- ranging Capital Improvement Program (CIP). From a service standpoint, Newport Beach poses extraordinary opportunities and challenges. The City's development is mostly built -out and established. We are charged with maintaining and protecting unique features that come with a harbor, miles of beaches, and the Back Bay. We are also subject to greater environmental scrutiny and regulatory processes to maneuver. Newport Beach is not a "grid" city like many of our neighbors. With limited alternative routes, construction on main arterials must be done with care and sensitivity to the traveling public. Numerous projects take place in tight quarters, such as Balboa Peninsula, Balboa Island, Lido Isle, and Old Town Corona del Mar. Minimizing disruptions to the public requires special attention to phasing and peak hour restrictions that can slow project completions and add complications and costs. Work schedules are further complicated by seasonal restrictions dictated by environmental regulations, community special events, and weather cycles. Funding availability and grant requirements also impact the timing of work plans. Our City's responsiveness to problems and quick action to resolve them is a highly prized attribute of the organization. However, this activity allows project scopes to grow and new projects are regularly added into the current program. Our projects delivery team of engineers, support staff, and consultants are tasked with managing greater workloads while maintaining high quality standards. Creative project management solutions and alternative project delivery methods will play a key role in our future success. Traffic signal system improvements continue to have a high priority. This year, we are embarking on a multi -year program to modernize and update the City's traffic signal system. The resultant updated system will allow the flexibility to implement real time adjustability and improve the efficiency of our system during peak hours, special events, construction activities, and emergencies. Training, retaining, and selecting top team members, both in -house and from the private sector, is becoming increasingly more difficult and more important as Baby Boomers retire in greater numbers and the pool of experienced professionals continues to shrink. Creative and innovative recruiting along with competitive compensation and benefit packages will be required to attract and retain high quality professionals in this highly competitive market. The CIP planned for FY 2007 -08 is described in more detail in the section of this document entitled Capital Improvements. Public Works - Serving You 2417 RIN UTILITIES DEPARTMENT o= m � o � C7 a 88 To provide quality, cost effective utility services to the community of Newport Beach Annual Department Goals Meet the current and future needs for infrastructure, services, and resources for citizens and visitors. • Provide the City a safe and reliable water supply. Operate and maintain the City's water, wastewater, oil and gas, and street lighting systems in an efficient and innovative manner. • Provide outstanding customer service and education to the public, other departments, and agencies. Promote team spirit and pride through our actions and activities. • Encourage continuous employee assessment and development programs. Facilitate the flow of information by maintaining a records management system. Department Organization The Utilities Department is responsible for providing water service, wastewater collection, oil and gas production, electrical services, and street lights to the citizens of Newport Beach. Water is delivered to the tap, wastewater is transported for treatment, and streets and beach parking lots are made safer with lighting. The Utilities Department has four divisions: Electrical, Oil & Gas, Water, and Wastewater. The Electrical Division staff of five field personnel is responsible for the maintenance and operation of electrical services at all City facilities. These facilities include park sites, community buildings, water and sewer pump stations, oil wells, emergency generators, and over 6,000 street and parking lot lights. Staff responds to over 1,500 service requests each year. The Oil & Gas Division provides contract administration and oversight for a small oil tank farm consisting of 16 wells in West Newport Beach. The operation and maintenance of the oil operation is out sourced. Natural gas is a by- product of the oil production and is sold to Hoag Hospital. The Water Division, which consists of four sections (Water Maintenance and Repair, Water Meters, Water Production, and Water Quality), delivers water from both local and imported sources. A staff of 28 field personnel operates the pumps, reservoirs, and pressure reducing stations, performs water testing, provides meter reading services, responds to customer service requests, and performs year -round preventative maintenance of 2,725 fire hydrants, 7,813 shut- off valves, over 215 miles of transmission mains, and 82 miles of distribution mains. The Wastewater Division staff of 13 field personnel operate 20 pump stations and maintains over 200 miles of wastewater collection system that transports the City's wastewater to the County's trunk system for treatment at the Huntington Beach plant. The Wastewater Division's closed circuit television unit is working towards video taping the 200 miles of sewer main by 2008 to meet the General Waste Discharge Requirements for the State of California. 01 UTILITIES DEPARTMENT (continued) U a 0. 90 Service Indicators Electrical Miles Street Light Cable Installed /Pulled Street Light Devices Replaced Emergency Responses Number of Service Calls Barrels of Oil Produced MCF` of Gas Produced Barrels of Water Injected Water Acre Feet" Water Purchased /Produced Acre Feet of Reclaimed Water Used Number of Fire Hydrants Serviced Number of Water Meters Read Number of Main Breaks Number of Service Calls Wastewater Miles of Pipe Cleaned Miles of Pipe Video Taped Number of Dig Outs Number of Service Calls "MCF = one thousand cubic feet "'Acre Foot = 325,850 gallons 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Projected 592 783 1,053 1,200 5 5 6 4 893 906 850 900 70 63 60 50 1,017 1,052 1,100 1,128 33,154 34,255 34,593 34,300 16,112 13,897 13,728 13,800 404,274 396,527 359,246 396,500 17,640 17,557 17,610 18,000 251 249 250 254 592 783 1,053 1,200 78,143 78,206 78,213 78,162 7 8 5 5 526 513 496 530 205 335 226 241 7 11 12 13 77 76 80 84 410 485 452 449 Budget FY07 -08 Wastewater Electrical n n, Oil & Gas 0 Water 78% Electrical Staffing: 4 plus .5 FTE $1,215,730 City Facilities Electrical Service Recreational Field Lighting Parking Lot Lighting Street Lighting Water Staffing: 36.25 plus 6.25 FTE $15,096,940 Water Production Water Quality Systems Services Meter Reading Reclaimed Water Customer Service & Education Water Maintenance & Repair Underground Service Locating Oil & Gas Staffing: 0 $601,259 Oil Production Gas Production Oil & Gas Remediation Wastewater Staffing: 13.25 plus 1.75 FTE $2,639,889 Sewer Main Cleaning Sewer Mainline Repair Pump Station Maintenance Sewer Lateral /Cleanout Replacement 2004 -05 2005 -06 2006 -07 2007 -08 Actual Actual Estimated Proposed Salaries and Benefits $ 4,867,761 $ 5,120,703 $ 3,878,962 $ 5,579,606 Maintenance and Operations $ 12,858,497 $ 12,303,939 $ 9,369,779 $ 13,903,562 Capital Outlays $ 85,166 $ 32,984 $ 24,924 $ 70,650 CIP $ 7,703,436 $ 10,948,359 $ 3,848,000 $ 3,023,000 Total Expenditures $ 25,514,860 $ 28,405,985 $ 17,121,665 $ 22,576,818 Charges for Services $ 19,559,777 $ 19,432,000 $ 20,550,000 $ 21,671,415 Intergovernmental $ 788,188 $ 805,393 $ - $ - Use of Money & Property $ 363,206 $ 472,538 $ 790,000 $ 829,500 Sales of Oil & Gas $ 1,301,532 $ 1,355,000 $ 1,055,000 $ 1,306,650 Other Revenue $ 125,905 $ 18,000 $ 23,000 $ 19,184 Transfer (To) From Reserves $ 3,376,253 $ 6,323,054 $ (5,296,335) $ (1,249,931) Total Revenue $ 25,514,860 $ 28,405,985 $ 17,121,665 $ 22,576,818 Ob A A A S �a � O A O 91 CITY OF NEWPORT BEACH 2007 -2008 RESOURCE ALLOCATION PLAN DESCRIPTION OF INTERNAL SERVICE FUNDS The City continues to provide for the financing of certain functions through the use of Internal Service Funds (ISF). The purpose of these funds is to facilitate the management of some types of expenditures on a centralized, as opposed to decentralized (by department) basis, without losing the visibility of each Department's share of the overall cost. Each Department has been required to budget for the cost of these functions at a pre- determined rate, as opposed to attempting to project actual costs at the Department level, which would be required if there was no ISF mechanism. Funds are then collected from each Department at the pre- determined rate by the Internal Service Fund during the course of the year. All actual expenditures for the function in question (for the City as a whole) are then made from the Internal Service Fund. The City has established four Internal Service Funds — Insurance Reserve Fund, Retiree Medical Insurance Fund, Compensated Absences Fund, and Equipment Maintenance and Replacement Fund. Insurance Reserve Fund. The Insurance Reserve Fund is used to payall Workers' Compensation and General Liability expenses of the City. This includes insurance premiums, consultant fees, medical expenses, contract attorney costs, payments for judgments and settlements, and all other expenses connected with this function. The amounts paid into this Fund by the individual Departments vary. Each Department's budget base for Liability expenses was established by examining a ten -year history of claims and determining each Department's appropriate share, based on the nature of the claims themselves. That share was then used to establish each Department's percentage of the funding being set aside in the Insurance Reserve Fund for anticipated Liability expenses this year, and to address at least part of any reserve deficiencies. This year's contribution by departments, which constitutes revenue to the ISF, is projected to be $3,328,697. This should constitute sufficient resources to fund short term expenditures and accumulate resources to pay long -term claims. Each Department's share of the City's anticipated Workers' Compensation expenses was determined by an analysis of claims history by labor class in Newport Beach as compared to the same information for the State as a whole. Based on this data, appropriate rates were established for each labor class in the City. These rates were then used to determine the budget base needed in each Department to accumulate the total anticipated Insurance Reserve Fund requirement to pay all Workers' Compensation claims and related expenses for this budget year (approximately $2,496,241). Similar to the situation with Liability, there is an accumulated deficit for Workers' Compensation. Therefore $3,199,421, or a projected excess of $703,180 is being collected to cover the deficit. Retiree Medical Insurance Fund. In January 2006, the City has implemented a new defined contribution Retiree Medical Insurance Fund instead of the priordefined benefit program which will ultimately reduce the City's long -term liability for this program. The transition to the new program will take an estimated twenty years or more to fully implement, but our operating expenses will eventually be capped as we will only need to fund contributions for current employees and the City's unfunded liability will be zero. The contribution amount is based on a formula currently provided for in the Memorandum of Understanding between the City and the employees. PINA Compensated Absences Fund. Departmental payments into the Compensated Absences Internal Service Fund are based on a percentage of salary. That percentage is set at a level which will accumulate a sufficient monetary base within the fund to accommodate current year expenses. This year's contribution level is 3.5% of salary resulting in a budgeted amount of $2,104,243. Any amounts collected in excess of the annual expense, reduce the long -term unfunded liability in this fund. Equipment Maintenance and Replacement Fund. The Equipment Maintenance and Replacement Fund is used to provide funding for the maintenance of almost all of the City's fleet of Rolling Equipment, and to accumulate funds for the eventual replacement of that equipment. Based on the City's maintenance experience, anticipated equipment life span, and projected replacement costs, rates were established for each class and type of equipment. These rates function much like vehicle rental rates from the perspective of the using Departments. Funds for replacement and for maintenance remain segregated. Maintenance funds are used to fully fund the General Services Equipment Maintenance Division, including the Auto Parts Warehouse, and certain other General Services Department overhead expenses which are directly attributable to rolling equipment maintenance, but are contained in the budgets of other divisions. Each Department Budget unit's share of this cost, based on the equipment it has in service, is contained on line 8022 of the respective M &O budget sheets. The Police Department has their own equipment replacement and maintenance program including a Police Fleet Maintenance Division. Recommendations for rolling stock replacement are made by each Department to the City Manager through the General Services Director. The City Manager then includes his final recommendation for Equipment Replacement action to the City Council as part of the annual budget submission. Money accumulated in the Equipment Replacement portion of this Fund can only be used for equipment replacement unless specifically reprogrammed by the City anager. Each Department Budget unit's "contributions" to this fund, based on the equipment it has in service, can be found on line 8024 of the respective M &O budget sheets. For Fiscal Year 2007 -2008, City expenditures from Internal Service Funds are projected as follows: Equipment Debt Service, Equipment Replacement, $49,820 Workers' Compensation *, $2,418,700 $2,496,241 Equipment Mainte $2,049,368 Liability*, $2,950,259 Compensated Absences, -� $1,206,000 Retiree Medical Insurance *, $3,133,000 *Includes legal services, insurance premiums, contract administration, claims & settlements, and payments to providers of medical service. 93 CITY OF NEWPORT BEACH 2007 -2008 RESOURCE ALLOCATION PLAN DEBT SERVICE & OTHER ACTIVITIES Most of the City budget is dedicated to a one -year operating plan for each department. However, certain budgetary components do not fit within this definition. Capital Improvement Projects (CIP) and debt service expenditures benefit more than one operating period. Since CIPs may have significant useful lives, expenditures are deemed to benefit both the current and future operating periods while debt service expenditures are deemed to benefit current, future, and past operating periods. An entire section of the budget document is dedicated to CIP expenditures; however Debt Service expenditures can be adequately covered within this section. Some proposed expenditures in the budget only benefit the current operating period but do not readily fit within the operating plan of any one department and /or its funding source cannot be relied upon to fund routine department operations. For lack of a more descriptive term, we often refer to non - departmental expenditures of this nature as other activities. Debt Service Expenditures Since the City does not issue debt instruments to finance operating activities, Debt Service Expenditures are the result of capital financing ventures. There are two principal reasons why debt instruments are issued. The first circumstance is when the cash flow for the construction or purchase of a long -term asset would cause a significant strain on the City's cash flow and the asset to be financed will benefit many service periods. In no instance would the City select the duration of a given debt instrument to extend beyond the expected life of the asset financed. The second scenario arises when an asset to be purchased may not cause a significant cash flow strain but it would be economically advantageous to finance the asset rather than to purchase it outright (e.g. occasionally the City can borrow money at a lower rate than its investment portfolio is earning). Library Certificates of Participation (COPS) In 1992 the City issued $7.5 million in COPs to finance the construction of the Central Library. The issue was subsequently refinanced in 1998 to reduce total debt service payments that resulted in an economic gain of $495,745. The Refunded Certificates Principal payments range from $245,000 to $535,000 from June 1, 2000 through June 1, 2019, at an interest rate ranging from 3.60 percent to 5.15 percent and are serviced by the General Fund. The Certificates outstanding at June 30, 2007, amounted to $4,980,000. Boating and Waterways Loan The City also has a loan from the California Department of Boating and Waterways forthe purchase and rehabilitation of the Balboa Yacht Basin. The original loan in 1987 was for $3,300,000. This loan is payable in thirty annual installments of $237,062 at a 4.50 percent rate of interest, which M1 began on August 1, 1987. The outstanding balance at June 30, 2007, amounted to $1,469,202. The loan is funded entirely by Tide and Submerged Lands Fund revenue sources. Office Equipment Leases The City occasionally enters into lease- purchase agreements to finance the acquisition of copiers, computers, telecommunications or other office equipment and upgrades. The terms of the leases normally range from three to five years and are typically payable monthly. Currently there are no outstanding leases of this nature. Debt of this nature is serviced by whichever fund derives the benefit of the equipment. In most circumstances the General Fund enjoys the benefit of office equipment purchases of this type and would therefore service this debt. Rolling Stock Leases Most City vehicle purchases do present a cash flow challenge and are therefore purchased outright except when financially advantageous conditions exist. However, the City does own and operate some rolling stock including fire engines, ladder trucks, vactor trucks and other heavy equipment that can be several hundred thousand dollars pervehicle. These items are periodically financed through lease- purchase agreements. The interest rates on these obligations range from 3.04 percent to 5.21 percent. Rolling stock capital lease obligations at June 30, 2007, amounted to $49,490. Since the City accounts for all rolling stock activity in a central cost center (internal service fund), debt service payments for all rolling stock related debt is serviced from this fund. However, this central cost center does distribute all vehicle related costs (including acquisition and financing costs) in the form of a maintenance and replacement charge to the organizations that benefit from the vehicle. Water Revenue Bonds In 1995, the City issued $17,100,000 of water revenue bonds to finance the construction and acquisition of groundwater storage and transmission facilities. This debt was refinanced July 1, 1998 for an economic gain of $418,469. The bonds are secured by a pledge of net revenues of the Water Fund. The bonds bear interest ranging from 3.60 percent to 4.50 percent. Semi- annual debt service payments are payable on February 1 and August 1 (totaling $1.6 million per annum). At June 30, 2007, the outstanding balance was $4,540,000. Newport Coast Special Assessment District Relief Because the Newport Coast area was not incorporated into the City limits when much of the public improvements that serve this area were constructed, the improvements were financed by private property special assessments. Had the Newport Coast area been incorporated within the City limits at the time the improvements were constructed, the City would have likely participated in funding much of the public improvements. Before this area was officially annexed into the City limits, the City entered into a pre- annexation agreement with the Newport Coast Committee of 2000 where the City agreed to reimburse residents and thereby reduce the cost of certain private property special assessments. As a part of the pre- annexation agreement, the Irvine Ranch Water District (IRWD) transferred $25 million to the City in exchange for the right to continue to provide water utility service to this area. With this $25 million from IRWD, the City will reduce the special assessment levies by $1.2 million a year for 15 years and dedicate $7 million toward the construction of a community center. At June 30, 2007, $12,000,000 was outstanding. 95 Community Development Block Grant (CDBG) Loan The CDBG program is a federal revenue source that is restricted to programs and projects that benefit low and moderate income areas. In August of 2002, the City was granted a $2.4 million loan that is secured and will be repaid by future block grant allocations to partially finance the Balboa Village improvements. Commonly known as a "Section 108 Loan," this loan will be repaid over 20 years in $215,000 installments. As of June 30, 2007, the outstanding balance of this loan was $2,134,000. Debt Service Estimates 2007 -2008 Year of Original Balance Balance Total Principal Final Issuance 07/0112007 Additions Deletions 0613012008 Payments Interest Paid to Date Payment Rolling Stock Leases 1,700,049 49,490 - (49,490) - 49,820 330 1,700,049 2008 Water Revenue Refunding Bonds 14,225,000 4,540,000 - (1,445,000) 3,095,000 1,613,833 168,833 11,130,000 2009 Balboa Marina Loan 3,457,930 1,459,202 - (170,948) 1,298,254 237,062 66,114 2,159,676 2016 Pre - Annexation Agreement 18,000,000 12,000,000 - (1,200,000) 10,800,000 1,200,000 - 7,200,000 2017 Refunding Library COP 7,330,000 4,980,000 - (315,000) 4,665,000 564,480 249,480 2,665,000 2019 Section 108 Loan 2,400,000 2,134,000 (78,000) 2,056,000 193,482 115,482 344,000 2024 Total Debt Service 47,112,979 25,172,692 (3,258,438) 21,914,254 3,858,677 600,239 25,198,725 Other Activities Asset Forfeiture Funds Funds derived from the City's participatory share of State and Federal assets seizures are accounted for separately from other funds due to special restrictions placed on the use of these proceeds. These funds can only be used to supplement but not subsidize law enforcement activities. Therefore, this funding source is not used to fund regular departmental operations. Supplemental Law Enforcement Service Fund (SLESF) State Assembly Bill 3229 provides funds to the City to be used exclusively for front line law enforcement services. The Bill stipulates that SLES funds are to be segregated and used to increase policing efforts and not be used to supplement departmental operations. Air Quality Management District Funds (AQMD) State Assembly Bill 2766 provides cities with a modest annual budget to encourage the reduction of air emissions. The City uses its AQMD funds to support the employee rideshare program and to subsidize the cost of the electric vehicles used to supply City services. 96 Ackerman Donation The City is the beneficiary of lease proceeds of certain commercial property donated by the Carl Ackerman Family Trust. The property was given to the City subject to a December 18, 1992, 15 -year lease. The lease gave the lessee an option to purchase the property and sets out in detail the method to exercise the option, the option price, and conditions of the purchase. On August 8, 2003, the lessee exercised the option to purchase in the amount of $1,940,000. As a condition of the lease, 60 percent of the proceeds were paid to the University of California, Irvine Foundation and the City is required to create a permanent endowment with the remaining 40 percent. Interest earned from the endowment will be accounted for and used to purchase high tech library equipment and for a City administered scholarship program. Environmental Liability Fund As part of the City's franchise agreements with commercial solid waste haulers, the City collects 5.50 percent of their gross receipts that are set aside to defray the cost of any legal or environmental costs that might arise connected with the collecting, hauling and dumping of waste originating within the City. These funds are used to provide the City with environmental liability insurance and to conduct waste related environmental assessments. 97 �� U CAPITAL IMPROVEMENTS The City of Newport Beach Capital Improvement Program (CIP) serves as a plan for the provision of public improvements, special projects, on -going maintenance programs, and the implementation of the City's master plans. Projects in the CIP include improvements and major maintenance on arterial highways, local streets, and alleys; storm drain and water quality improvements; bay, pier, and beach improvements; park and facility improvements; water and wastewater system improvements; transportation safety and traffic signal improvements; and planning programs and studies. 2007 -2008 Capital Improvement Projects by Fund (Includes Rebudgets) Water Enterprise 5% Wastewater Enterprise 3% Tide & Submerged Lands 6% General Fund 23% Gas Tax 11% Building Excise Tax CIOSA/Environmental 1% Liability 5% Transp. & Circul./Traffic — Congestion Relief /CDBG 4% Contributions 9% Santa Ana Heights Projects 21% Arterial Highways Rehabilitation Program 2% Measure M Transportation Funding 10% The FY 2007 -08 CIP consists of over 100 projects representing over $22 million in new appropriations and nearly $14 million in rebudgeted funds. The CIP was developed with input from all City departments, citizen input, and City Council members who identified needs in their QsZC respective areas. The individual project requests were compiled by each department and then submitted to the Public Works Department in early 2007. The projects were prioritized and summarized by available funds and reviewed by the Public Works Director. A Public Works CIP review team then met with representatives from each Department to discuss funding priorities. The projects recommended for approval were presented to the City Manager in March and were again discussed with each Department Director. The process was finalized in April and packaged for distribution to the City Council. Funding of the capital projects, including preliminary estimates for projects to be rebudgeted, is derived from multiple funding sources, and is shown in the chart on the preceding page. Projects are organized by primary function or benefit into one of the following categories: Facilities; Streets and Drainage; Traffic; Parks, Harbors and Beaches; Water Quality and Environmental; Water: Wastewater: and Miscellaneous. Highlights of the new appropriations are presented by category as follows: Facilities Projects organized under Facilities include construction, rehabilitation and repair of City buildings and facilities. Major projects within this category approximate $2 million and include: • Repairs and improvements to various public safety facilities, including the police facility, fire stations, and lifeguard headquarters ($1,405,400) • Repairs and improvements to other City facilities, including the Corporation Yard, Oasis Senior Center, Community Youth Center, and Little Corona restroom ($467,350) • Other capital purchases, including Central Library generator, Central Library HVAC, and City Hall carpeting ($105,300) Streets and Drainage Projects organized under Streets and Drainage include construction, rehabilitation and repair of City roads, medians, bridges, sidewalks, streetlights, storm drains, tide structures, and parking lots. Projects within this category exceed $12 million and major highlights include: Street and alley construction and rehabilitation, including Superior Avenue Rehabilitation, Eastbluff Drive Rehabilitation, Corona del Mar south of Coast Highway Rehabilitation, Birch Street Rehabilitation, Balboa Village Alley Replacement, and Irvine Avenue Realignment ($6,126,700) • Bridge improvements ($1,997,200) • Sidewalk improvements ($1,455,100) 101 • Slurry seal projects ($1,301,000) • Storm drains and tide structures ($635,000) • Median and landscape improvements ($605,000) Streetlighting ($240,000) Traffic Projects organized under Traffic include traffic signal system maintenance and improvements, neighborhood traffic management, pedestrian improvements, and signage. Projects within this category approximate $4 million and major highlights include: • Traffic signal modernization ($1,841,285) Other traffic signal installation, maintenance, and improvements ($636,000) • Signs ($630,000) Pedestrian improvements ($549,100) • Neighborhood traffic management and studies ($295,000) Parks, Harbors and Beaches Projects organized under Parks, Harbors, and Beaches include improvements or repairs to the City's parks, harbors, docks, wharfs, piers, and beaches. Projects within this category exceed $5 million and major highlights include: • Park improvements, including Mariners Park improvements, Sunset Ridge Park design, Newport Center Park, Santa Ana Heights passive park, park lighting at Buffalo Hills, Bonita Creek and San Miguel parks, tennis court fencing and playground equipment ($3,416,500) Harbor improvements, including public docks access improvements, Rhine Wharf Channel Public Dock, and Rhine Wharf Channel repair ($945,000) Beach improvements, including sand replenishment, eelgrass mitigation, beach observation camera system, and pier repairs ($977,000) Water Quality and Environmental Projects organized under Water Quality and Environmental include studies, improvements, and programs that benefit the City's natural resources. Projects within this category approximate $2.5 million and major highlights include: Semeniuk Slough dredging ($650,000) • Newport Terrace Landfill gas remediation ($635,000) 102 • Runoff reduction and irrigation improvements ($570,000) • Buck Gully Maintenance Road and Wetlands project ($250,000) • Various studies, assessments, and restoration projects ($370,000) Water and Wastewater Projects organized under Water and Wastewater are funded from respective service charges and are used for the rehabilitation and expansion of these services. Projects within these categories exceed $2.5 million and major highlights include: • Water transmission and water main improvements ($1,464,000) • Water well rehabilitation ($150,000) Sewer force main and lateral improvements ($650,000) • Sewer pump station improvements ($334,000) Miscellaneous Projects organized under Miscellaneous are ones that do not fit into any other category and include capital purchases and special projects. Projects within these categories exceed $8.6 million and highlights include: Santa Ana Heights utility undergrounding ($7,411,200) • Oil Field improvements ($450,000) • Computer related purchases ($240,000) • Equipment purchases ($244,000) • Slope repairs and project management ($270,000) Conclusion The City continues to undertake an ambitious and wide - ranging capital improvement program. The projects, both significant and diverse, will serve all areas of the City. It is the City's policy to appropriate sufficient funds for all projects scheduled during the coming budget year. Many of the projects require multiple year terms to complete them. In such cases, only the current phase identified to be completed during FY 2007 -2008 is budgeted and appropriated. Subsequent phases of a project and projects requiring more time orfunding are reconsidered at the appropriate time. 103 w UIWM TIDE & SUBMERGED LAND FUND Estimated Funds Available Estimated Beginning Fund Balance Estimated Revenue for 2007 -2008 - All Sources Total Funds Available Estimated Chargeable Expenditures Fire General Services Police Public Works Administrative Services City Manager - Water Quality & Code Enforcement City Manager - Harbor Resources Utilities - Oil & Gas Capital Projects Debt Services Expenditures Total of All Proposed Expenditures Estimated Ending Fund Balance $0 $9,490,963 $11,196,350 2,779,891 7,629,721 512,066 83,536 397,995 1,930,168 601,259 2,354,000 237,062 * Although these expenditures are considered Tideland expenditures, they post to the General Fund. The amounts are calculated as a percentage of the total department budget, based on the 1995 -95 Full Cost Allocation Plan. 1181 $9,490,963 $27,722,048 ($18,231,085) Capital Asset Schedule as of June 30, 2006 Libraries Balboa Year of Historical Description Acquisition Cost Administration and Services 1958 217,182 City Hall Complex 1930 $2,347,623 Corporate Yard - General Services 1955 5,712,756 Safety 1956 532,415 Fire Station #1 - Balboa 1962 81,615 Fire Station #2 - Headquarters 1966 94,419 Fire Station #3 - Fashion Island 1971 888,366 Fire Station #4 - Balboa Island 1994 1,420,602 Fire Station #5 - Corona del Mar 1950 237,135 Fire Station #6 - Irvine Avenue 1957 136,009 Fire Station #7 - Santa Ana Heights 2005 4,402,221 Fire Station #8 - Newport Coast 2002 1,816,350 Lifeguard Headquarters 1989 556,483 Police Station 1973 3,057,796 Libraries Balboa 1906 187,110 Central 1992 15,268,031 Corona del Mar 1958 217,182 Mariners 1957 803,791 Harbors, Beaches, and Recreation 15th Street Restrooms 1956 532,415 19th Street Restrooms 1940 2,000 38th Street Park 1925 212,988 Arroyo Park 2003 17,578,871 Back Bay View Park 2006 2,650,000 Beach and Harbor Right of Way various 52,705,580 Balboa Community Center 1956 156,246 Balboa Island Park 1973 162,397 Balboa Beach - Parking Lots and Booth 1986 1,619,492 Balboa Pier 1940 3,613,669 Balboa Pier - Concession 1982 n/a Balboa Pier Restroom 1957 245,489 Balboa Theater 1998 480,000 Balboa Yacht Basin - Apartments /Garages /Parking 1960 150,110 Balboa Yacht Basin - Galley Cafe 1988 44,000 Balboa Yacht Basin - Headquarters / Restrooms 1984 158,746 Balboa Yacht Basin - Land 1930 1,276,308 107 Capital Asset Schedule as of June 30, 2006 (continued) Year of Description Acquisition Historical Cost Balboa Yacht Basin - Piers and Docks 1984 3,079,395 Bayside Park 1926 490,865 Bayview Park 1985 3,917,422 Begonia Park 1926 373,609 Big Canyon - Land 1959 9,696,650 Bob Henry Park 1997 4,480,305 Bolsa Park 1994 99,474 Bonita Canyon Sports Park 2002 3,726,351 Bonita Creek Park 2002 6,978,802 Boy Scout House 1960 2,000 Boys and Girls Club 1971 n/a Buck Gully Restrooms 1956 13,442 Buffalo Hills Park 1970 4,371,663 Bulkheads various 2,357,628 Canyon & Harbor Watch Park 2006 850,000 Castaways Park 1997 803,052 CDM Beach - Concession 1970 30,994 CDM Beach - Parking Lot and Booth 1957 1,141,741 CDM Beach - Recreation 2003 180,896 CDM Beach - Restrooms 1956 54,883 Channel Place Park 1958 504,202 Cliff Drive Park 1917 1,026,091 Cliff Drive View Park 1975 147,668 Eastbluff Park 1965 557,822 Ensign Park 1973 804,466 Ferry Landing Restrooms 1962 28,917 Galaxy Park 1962 255,697 Gateway Park 1999 1,014,620 Girl Scout House 1956 24,665 Grant Howald Park 1964 278,216 Grant Howald Park - Community Youth Center 1988 867,529 Harbor View Nature Park 1974 4,167,542 Inspiration Point 1953 16,000 Irvine Terrace Park 1960 1,703,456 Jasmine Creek Park 1959 48,961 Kings Road Park 1974 210,482 L Street Park 1924 41,948 Las Arenas Park 1956 133,438 Lido Park 1973 94,219 108 Capital Asset Schedule as of June 30, 2006 (continued) Year of Historical Description Acquisition Cost Lookout Point 1953 16,000 Los Trancos Canyon View Park 2006 1,280,000 Marine Education Facility 2003 511,687 M Street Park 1930 12,763 Mariners Park 1957 1,557,747 Newport Aquatic Center 1987 n/a Newport Coast Community Center 2006 5,340,000 Newport Island Park 1938 110,256 Newport Pier 1940 3,503,624 Newport Pier - Concession 1990 n/a Newport Pier- Restrooms 1989 305,188 Newport Shores Park 1906 57,258 Newport Theater Arts 1973 359,002 Newport Village Park 2006 2,290,000 Oasis Senior Center 1975 2,022,104 Ocean Front Parking Lot 1919 302,258 Old School Park 1917 24,829 Peninsula Park 1929 609,228 Rhine Wharf Park 1974 52,620 San Joaquin Hills Park 1965 1,162,974 San Miguel Park 1983 2,796,293 Spyglass Hill Park 1970 499,239 Spyglass Reservoir Park 1970 312,377 Sunset Park 1970 311,435 Sunset Ridge Park 2006 175,000 Veterans Park 1994 52,795 Washington Street Restrooms 1935 320,946 West Jetty View Park 1917 8,276 West Newport Community Center 1988 1,200,000 West Newport Park 1972 5,529,229 Westcliff Park 1962 729,952 Other 26th Street Parking Lot 1965 85,848 30th Street Parking Lot 1987 1,039,429 Balboa Bay Club - Land 1918 1,049,252 Bayside and Marguerite Parking Lot 1950 83,494 Beacon Bay - Land 1919 750,103 [IQ Capital Asset Schedule as of June 30, 2006 (continued) Infrastructure Road System Year of Historical Description Acquisition Cost Buck Gully 2006 16,180,000 Cannery Village Parking Lot 1989 1,146,634 John Wayne Gulch 2006 3,920,000 Mariners Mile Parking Lot 1976 642,081 Palm Street Parking Lot 1906 55,721 Vacant Land behind Central Library 1992 6,448,622 Equipment 1996 3,800,000 Rolling Equipment various 19,875,810 Other Equipment various 3,367,574 Infrastructure Road System various 1,770,111,286 Storm Drain System various 55,354,550 Bicycle Paths various 42,975,504 Oil Wells various 1,145,496 Walls various 1,860,103 Water System Utility Yard 1987 2,222,243 Water Reducers various 82,079 Water Meters various 1,184,301 Water Lines /Mains various 67,193,016 Fire Hydrants various 341,839 Reservoirs: Big Canyon 1959 24,086,298 Spyglass 1972 418,244 16th Street 1996 3,800,000 Capitalized Interest 1995 1,034,462 Pump Stations various 8,125,224 Wells 1996 3,417,000 Equipment various 148,191 Sewer System Sewer Lines /Mains various 32,578,920 Pump Stations various 8,457,500 TOTAL $2,284,024,815 * Leasehold improvements made by Lessee not valued. 110 EQUIPMENT MAINTENANCE AND REPLACEMENT FUND Schedule of Rolling Equipment Replacement (FY 2007 -08) Police Department Support Services Truck Patrol /Traffic Sedans (5) Patrol Station Wagons (2) Patrol Quads -Beach 4WD (4) Police Motorcycles (2) Traffic Truck (2) Traffic Sedan Administrative Services Truck, 1/2 ton With Liftgate Station Wagon Buildina Department Station Wagon (2) Public Safety Departments $ 21,000 $ 168,000 $ 83,000 $ 12,000 $ 38,000 $ 42,000 $ 26,000 Sub Total $ 390,000 Fire Department Fire Pumper Medic Van Lifeguard Jeep (2) Station Wagons, 4x4 (3) Other Departments Library $ 25,000 Station Wagon $ 18,000 Sub Total $ 43,000 Public Works Department Station Wagon (3) Station Wagon, 4x4 $ 38,000 General Services Department $ 65,000 Trailer, Wheeled Pump $ 50,000 Beach Tractor $ 70,000 Message Board $ 25,000 Truck, 1 Ton Stakebed (3) $ 99,000 Truck, 1/2 Ton (3) $ 66,000 Sub Total $ 310,000 PUBLIC SAFETY TOTALS OTHER DEPARTMENT TOTALS GRAND TOTAL ALL DEPARTMENTS $ 335,000 $ 135,000 $ 53,000 $ 107,000 Sub Total $ 630,000 G, :111 $ 72,000 $ 25,000 Sub Total $ 97,000 Recreation /Senior Services Department Bus, 19 Passenger $ 75,000 Van, 1/2 Ton $ 22,000 Sub Total $ 97,000 Utilities Department Truck, 1 1/2 Ton Bucket $ 65,000 Trucks, 1 1/2 Ton Flatbed (2) $ 84,000 Truck, 1 1/2 Ton Utility Body with Crane $ 50,000 Truck, 1 Ton Utility Body $ 38,000 Van, 1 Ton $ 35,000 $ 1,020,000 $ 875.000 $ 1,895,000 Sub Total $ 272,000 111 City of Newport Beach Preliminary Resource Allocation Plan 2007 -2008 Rolling Stock in Service Information will be updated and provided in the final Resource Allocation Plan 112 SEVEN YEAR COMPARISON OF FULL -TIME POSITIONS 2001 -02 2002 -03 2003 -04 2004.05 2005 -06 2006 -07 2007 -08 GENERAL CITY GOVERNMENT City Council 0.00 0.00 0.00 0.00 0.00 0.00 0.00 City Clerk 3.00 3.00 3.00 3.00 3.00 3.00 3.00 City Manager 11.00 11.00 17.00 19.00 20.00 20.00 22.00 Human Resources 9.00 9.00 9.00 9.00 9.00 9.00 9.00 City Attorney 5.00 5.00 5.00 5.00 5.00 5.00 3.00 Administrative Services 49.00 49.00 50.00 50.00 53.00 56.00 56.00 Total 77.00 77.00 84.00 86.00 90.00 93.00 93.00 PUBLIC SAFETY Police 238.00 237.00 237.00 237.00 238.00 240.00 240.00 Fire 146.00 147.00 148.00 148.00 150.00 153.00 153.00 Total 384.00 384.00 385.00 385.00 388.00 393.00 393.00 COMMUNITY DEVELOPMENT Planning 18.00 20.00 18.00 18.00 19.00 23.00 23.00 Building 26.00 26.00 28.00 29.00 29.00 29.00 29.00 Total 44.00 46.00 46.00 47.00 48.00 52.00 52.00 PUBLIC WORKS Public Works 33.00 33.00 33.00 33.00 34.00 33.00 33.00 Utilities - Electrical 5.00 5.00 5.00 5.00 5.00 5.00 5.00 General Services 110.00 111.00 109.00 109.00 109.00 110.00 112.00 General Services - Equipment ISF 15.00 15.00 15.00 15.00 15.00 15.00 15.00 Total 163.00 164.00 162.00 162.00 163.00 163.00 165.00 COMMUNITY SERVICES Library 36.00 37.00 36.00 36.00 39.00 40.00 40.00 Arts & Cultural 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Administration 2.00 0.00 0.00 0.00 0.00 0.00 0.00 Recreation 11.00 11.00 11.00 11.00 12.00 12.00 14.00 Senior Services 7.00 7.00 7.00 10.00 10.00 10.00 10.00 Recreation & Senior Services Admin 0.00 2.00 2.00 2.00 3.00 3.00 3.00 Total 57.00 58.00 57.00 60.00 65.00 66.00 68.00 BALBOA YACHT BASIN 1.00 1.00 1.00 1.00 0.00 0.00 0.00 WATER ENTERPRISE FUND 33.00 33.00 33.00 34.00 34.00 34.00 35.00 SEWER ENTERPRISE FUND 12.00 12.00 13.00 13.00 13.00 13.00 13.00 TOTAL FULL -TIME POSITIONS 771.00 775.00 781.00 788.00 801.00 814.00 819.00 113 Glossary Fund Descriptions Ackerman Donation Fund - Used to account for the disbursement of funds received from the Ackerman Trust. Such funds must be used for library and scholarship purposes. Air Quality Management District (AQMD) Fund - Used to account for revenues received from the South Coast Air Quality Management District restricted for the use of reducing air pollution. Arterial Highway Rehabilitation Program (AHRP) Fund— Used to account for federal funds available through the Federal Highway Administration Arterial Highway Rehabilitation Program to share the cost of rehabilitating certain arterial roadways in the City. Assessment District Fund - Used to account for the receipt and expenditure of funds received from 1911 Act and 1915 Act Assessment Districts for capital improvement projects. Asset Forfeiture Fund - Established to account for revenues resulting from the seizure of assets in conjunction with criminal cases (primarily drug trafficking). The City's policy is that all such funds be used for enhancement of law enforcement programs. Back Bay Science Center Fund — Used to account for revenues and expenditures related to construction of the Back Bay Science Center. Bonita Canyon Development Fund — Used to account for the receipt and expenditure of funds for the Bonita Canyon Public Facilities Agreement. The improvements include certain public parks and recreation facilities, and street improvements and facilities. Building Excise Tax Fund - Used to account for revenues received from builders or developers on building or remodeling projects within the City. Expenditures from this fund are used exclusively for public safety, libraries, parks, beaches, or recreational activities. 114 CIOSA Construction Fund - Used to account for the receipt and expenditure of funds for the Circulation Improvement and Open Space Agreement (CIOSA). The improvements include street and frontage improvements. Circulation and Transportation Fund - Used to account for fair share revenues collected from developers and restricted for capital improvement projects meeting the circulation element of the City's General Plan. Civic Center /Fire Station Construction Fund - Used to account for activities related to the possible re- building or relocation of the existing City Hall complex including the Fire Station. Community Development Block Grant (CDBG) Fund - Used to account for revenues and expenditures related to the City's Community Development Block Grant program. These funds are received from the Federal Department of Housing and Urban Development and must be expended exclusively on programs for low or moderate income individuals or families. Compensated Absence Fund — Used to account for the City's accumulated liability for compensated absences. Contributions Fund - Used to account for revenues received from other government agencies or private developers and expended for specific projects. Environmental Liability Fund - Used to account for solid waste fees restricted for mitigation of future environmental liability relating to the handling of solid waste. Equipment Fund - Used to account for the cost of maintaining and replacing the City's rolling stock fleet and the rental of the fleet to operating departments. Fire Station #7 Fund — Used to account for receipt of revenue intended to fund the construction of a new Fire Station 7 located in the Santa Ana Heights area of the City. General Fund - Used to account for fiscal resources, which are: a) dedicated to the general government operations of the City, and b) not required to be accounted for in another fund. Insurance Reserve Fund - Used to account for the City's self- insured general liability and workers' compensation program. Justice Assistance Grant (JAG) Fund — Formerly called the Local Law Enforcement Block Grant Fund. Used to account for federal su000rt of law enforcement activities. Library Debt Service Fund — Used to account for the debt service transactions related to the Certificates of Participation used to finance the construction of the Central Library. Mariners Library Fund — Used to account for receipt of revenue intended to fund the construction of a new Mariners Branch Library. Measure M Fund — Used to construct transportation improvement and traffic congestion relief projects. Funding is one percent of retail transaction and use tax. Miscellaneous Santa Ana Heights Projects — Used to account for revenue and expenditures related to miscellaneous projects in Santa Ana Heights. Newport Annexation Fund — Used to account for receipt of revenue from the Irvine Ranch Water District intended to repay Newport Coast property owners for a portion of assessment district costs, and for construction of a community center in Newport Coast. Newport Bay Dredging Fund — Used to account for the receipt of permanent endowments intended to fund the ongoing cost of maintaining and dredging of the Upper Newport Bay. Oil Spill Remediation Fund — Used to account for the receipt of the settlement proceeds from the American Trader Company. These funds must be used on projects affecting the areas damaged by the spill. Retiree Insurance Fund — Used to account for the cost of providing post - employment health care benefit. Santa Ana Heights Community Center Fund — Used to account for revenues and expenditures associated with the development and construction of a community center in Santa Ana Heights. State Gas Tax Fund - Accounts for all State Gas Tax related revenues and expenditures, including street repair, construction, and maintenance. State law requires that these funds be used exclusively for maintenance of the street and highway system. Supplemental Law Enforcement Services Fund (SLESF) — Used to account for revenues received from the County to be used exclusively for front- line law enforcement activities. Tide and Submerged Land Fund - Used to account for all revenues and expenditures related to the operation of the City's tidelands, including beaches and marinas. Traffic Congestion Relief Fund — Used to account for all revenues received from the State Treasury as per Assembly Bill 2928. These funds must by used only for maintenance or reconstruction costs on public streets or roads. Wastewater Enterprise Fund - Used to account for the activities associated with providing sewer services by the City to its users. Water Enterprise Fund - Used to account for the activities associated with the transmission and distribution of potable water by the City to its users. 115 Accounting Terms Accrual Basis - The basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. The accrual basis of accounting is used to account for all proprietary (enterprise and internal service funds) fund types. Activity - Departmental efforts that contribute to the achievement of a specific set of program objectives; the smallest unit of the program budget. Appropriation -A legal authorization to incurobligations and to make expenditures for specific purposes. Assessed Valuation - The valuation set upon real estate and certain personal property by the Assessor as a basis for levying property taxes. Authorized Positions - Employee positions, which are authorized in the adopted budget, to be filled during the year. Available (Undesignated) Fund Balance - This refers to the funds remaining from the prior year that are available for appropriation and expenditure in the current year. Bond Refinancing - The payoff and reissuance of bonds, to obtain better interest rates and /or bond conditions. Bonds —Aform of borrowing (debt financing) which reflects a written promise from the City to repay a sum of money on a specific date at a specified interest rate. Budget - A plan of financial activity for a specified period of time indicating all planned revenues and expenses for the budget period. Budget Calendar - The schedule of key dates that a government follows in the preparation and adoption of the budget. Budgetary Basis - This refers to the basis of accounting used to estimate financing sources and uses in the budget. This generally takes one of three forms: GAAP, cash, or modified accrual. 116 Budgetary Control - The control or management of a government in accordance with the approved budget for the purpose of keeping expenditures within the limitations of available appropriations and resources. Capital Budget- The appropriation of bonds or operating revenue for improvements to facilities, and other infrastructure. Capital Improvements - Expenditures related to the acquisition, expansion or rehabilitation of an element of the government's physical plant; sometimes referred to as infrastructure. Capital Improvements Program (CIP) - A plan for capital outlay to be incurred each year over a fixed number of years to meet capital needs arising from the government's long -term needs. Capital Outlay- Fixed assets which have a value of $500 or more and have a useful economic lifetime of more than one year; or, assets of any value if the nature of the item is such that it must be controlled for custody purposes as a fixed asset. Capital Project - Major construction, acquisition, or renovation activities which add value to a government's physical assets or significantly increase their useful life. Also called capital improvements. Capital Reserve - An account used to segregate a portion of the government's equity to be used for future capital program expenditures. The amount of capital reserve is roughly equal to the government's annual equipment depreciation and an amount identified as being needed for future capital acquisition. Cash Basis -A basis of accounting in which transactions are recognized only when cash is increased or decreased. Certificate of Participation — A debt issue similar to issuing bonds, but less restrictive. Charges for Services - Those charges levied to individuals or organizations for the use or consumption of services provided by the City. Consumer Price Index (CP/) - A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living (i.e., economic inflation). Contingency -A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Debt Service - The cost of paying principal and interest on borrowed money according to a predetermined payment schedule. Deficit- The excess of an entity's liabilities over its assets or the excess of expenditures or expenses over revenues during a single accounting period. Department -The basic organizational unit of government which is functionally unique in its delivery of services. Depreciation - Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. Development Fees - Those fees and charges generated by building, development and growth in a community. Included are building and street permits development review fees, and zoning, platting and subdivision fees. Disbursement - The expenditure of moneys from an account. Distinguished Budget Presentation Awards Program - A voluntary awards program administered by the Government Finance Officers Association to encourage governments to prepare effective budget documents. Employee (or Fringe) Benefits - Contributions made by a government to meet commitments or obligations for employee fringe benefits. Included is the government's share of costs for various pensions, medical and life insurance plans, etc. Encumbrance - The commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a specified future expenditure. Enterprise Fund — Used to account for City operations that are financed and operated in a manner similar to private business enterprises. The objective of segregating activities of this type is to identify the costs of providing the services, and to finance them through user charges. Expenditure - The payment of cash on the transfer of property or services for the purpose of acquiring an asset, service, or settling a loss. Expense - Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest, or other charges. Fiscal Policy -A government's policies with respect to revenues, spending, and debt management as these relate to government services, programs, and capital investment. Fiscal policy provides an agreed upon set of principles for the planning and programming of government budgets and their funding. Fiscal Year - Atwelve -month period designated as the operating year for accounting and budgeting purposes in an organization. The City of Newport Beach's fiscal year is July 1 through June 30. Fixed Assets -Assets that are intended to continue to be held or used long -term, such as land, buildings, machinery, furniture, and other equipment. Fixed assets are also called capital assets. Full -time Equivalent Position (FTE) - A part-time position converted to the decimal equivalent of a full -time position based on 2080 hours per year. For example, a part-time fiscal clerk working 20 hours per week would be the equivalent to .5 of a full -time position. Function - A group of related activities aimed at accomplishing a major service or regulatory program for which a government is responsible (e.g., public safety). Fund -A fiscal entity with revenues and ex- penses which are segregated for the purpose of carrying out a specific purpose or activity. Fund Balance - The excess of the assets of a fund over its liabilities, reserves, and carryover. 117 GAAP - Generally Accepted Accounting Principles. Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles. General Obligation (G. 0.) Bond - This type of bond is backed by the full faith, credit, and taxing power of the government. Goal -A statement of broad direction, purpose or intent based on the needs of the community. A goal is general and timeless. Governmental Accounting Standards Board (GASB) — The ultimate authoritative accounting and financial reporting standard - setting body for state and local governments. Grants - A contribution by a government or other organization to support a particular function. Grants may be classified as either operational or capital, depending upon the grantee. Indirect Cost - A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned to one service. Infrastructure - The physical assets of a government (e.g., streets, water, sewer, public buildings, and parks). Intergovernmental Revenue - Funds received from federal, state, and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. Internal Service Charges - The charges to user departments for internal services provided by another government agency, such as equipment maintenance and replacement charges, or insurance funded from a central pool. Lapsing Appropriation - An appropriation made for a certain period of time, generally for the budget year. At the end of the specified period any unexpected or unencumbered balance lapses or ends, unless otherwise provided bylaw. Levy- To impose taxes for the support of government activities. Line -item Budget —A budget prepared along departmental lines that focuses on what is to be bought. Long -term Debt— Debt with a maturity of more than one year after the date of issuance. Maintenance and Operations — Expendable materials and operating supplies necessary to conduct depart- mental operations. Modified Accrual Basis — The basis of accounting in which revenues are recognized when they become both "measurable" and "available" to finance expenditures or the current period. All governmental and fiduciary fund types are accounted for using the modified accrual basis of accounting. Net Budget— The legally adopted budget less all interfund transfers and interdepartmental charges. Object of Expenditure — An expenditure classification, referring to the lowest and most detailed level of classification, such as electricity, office supplies, asphalt, etc. Obligations — Amounts which a government may be legally required to meet out of its resources. They include not only actual liabilities, but also encumbrances not yet paid. Operating Expenses — The cost for personnel, materials, and equipment required for a department to function. Operating Revenue — Funds that the government receives as income to pay for on -going operations. It includes such items as taxes, fees from specific services, interest earnings, and grant revenues. Operating revenues are used to pay for day -to -day services. Performance Budget —A budget wherein expenditures are based primarily upon measurable performance of activities and work programs. Prior -Year Encumbrances — Obligations from previous fiscal years in the form of purchase orders, contracts, or salary commitments which are chargeable to an appropriation, and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise terminated. 118 Program —A group of related activities performed by one or more organizational unit for the purpose of accomplishing a function for which the government is responsible. Program Budget —A budget that allocates money to the functions or activities of a government rather than to specific items of cost or to specific departments. Program Performance Budget — A method of budgeting whereby the services provided to the residents are broken down in identifiable service programs or performance units. A unit can be a department, a division, or a workgroup. Each program has an identifiable service or output and objectives to effectively provide the service. The effectiveness and efficiency of providing the service by the program is measured by performance indicators. Program Revenue (Income) - Revenues earned by a program, including fees for services, license and permit fees, and fines. Purpose - A broad statement of the goals, in terms of meeting public service needs, that a department is organized to meet. Reserve - An account used either to set aside budgeted revenues that are not required for expenditure in the current budget year or to earmark revenues for a specific future purpose. Resolution - A special or temporary order of a legislative body; an order of a legislative body requiring less legal formality than an ordinance or statute. Resources - Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. Revenue - Sources of income financing the operations of government. Revenue Bond - A bond that is backed only by the revenues from a specific enterprise or project, such as a hospital or toll road. Secured Property Tax —A tax levied on both real and personal property according to the property's valuation and the tax rate. Service Indicators - Specific quantitative and qualitative measures of work performed as an objective of specific departments or programs. Source of Revenue - Revenues are classified according to their source or point of origin. Supplemental Appropriation -An additional appropriation made by the governing body after the budget year has started. Tax Levy - The resultant product when the tax rate per one hundred dollars is multiplied by the tax base. Taxes - Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments. Transfers In /Out - Amounts transferred from one fund to finance the services for the recipient fund. Transient Occupancy Tax — A tax paid to the City for short-term lodging /residency within the City limits. Short-term is defined as 30 days or less. Unencumbered Balance - The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future purposes. Unreserved Fund Balance - The portion of a fund's balance that is not restricted for a specific purpose and is available for general appropriation. Unsecured Property Tax — The property tax on unsecured property such as business inventory or moveable equipment. User Charges - The payment of a fee for direct receipt of a public service by the party who benefits from the service. Working Capital - Excess of readily available assets over current liabilities. Or cash on hand equivalents which may be used to satisfy cash flow needs. 119