HomeMy WebLinkAbout2010-4 - Fiscal Sustainability PlanRESOLUTION NO. 2010 -4
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF NEWPORT BEACH RELATING TO A
FISCAL SUSTAINABILITY PLAN FOR NEWPORT
BEACH CITY GOVERNMENT
WHEREAS, the City of Newport Beach has remained a fiscally responsible municipality
since its inception in 1906, carefully balancing its budget year -to -year despite changes in the
regional and national economy;
WHEREAS, the current economic recession has impacted the City's General Fund
operations in a significant manner, causing reductions in sales tax and hotel bed tax revenue,
among other sources of revenue; and
WHEREAS, the City's preparation for the downturn, including budget reductions and the
City's prudent reserve policies have assisted the City in weathering the current downturn,
ensuring the continuation of the strong provision of essential services; and
WHEREAS, even as the City and the region may slowly return to a period of economic
growth, the City is cognizant of its responsibility to continuously improve the organization and its
services to maximize efficiency and cost - effectiveness; and
WHEREAS, even as the region may see new economic growth, the City faces significant
and costly obligations in the future, including rapid increases in retirement costs and the
maintenance, repair, and replacement of City facilities via the Facilities Finance Plan and the
City's capital improvement program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach
that it hereby adopts the following fifteen (15) elements of a Fiscal Sustainability Plan and
directs that the Plan be the policy of the City Council going forward into 2010 and beyond:
ELEMENTS OF THE CITY'S FISCAL SUSTAINABILITY PLAN
1. The City will proactively seek to protect and expand its tax base by encouraging a
healthy underlying local economy.
2. The City will work to enhance and protect the property values of all Newport Beach
residents and property owners.
3. The City will encourage shopping, dining, and visiting at Newport Beach stores,
restaurants, and hotels.
4. The City will establish and maintain appropriate cash reserves.
5. The City will manage its Facilities Finance Plan to not exceed the 5% of General Fund
expenditures threshold.
6. City revenue performance will be reviewed no less than quarterly and appropriate
budget adjustments will be made in advance of the end of a budget year if revenue
performance is not meeting projections.
7. The City will initiate a `results -based budgeting" approach that allows the public and the
City Council to prioritize City expenditures strategically rather than simply adjusting
legacy expenditures to reflect inflation.
8. The City will implement a Performance Measurement/Management Strategy as part of
an ongoing effort to ensure high - quality and efficient performance.
9. The City will consider competitive contracting of services and equipment when
appropriate and where clear, cost - effective alternatives exist.
10. The City will make it a priority to be energy efficient in its provision of public services.
11. The City will establish appropriate cost - recovery targets for its fee structure and will
annually adjust its fee structure to ensure that the fees continue to meet cost recovery
targets.
12. The City will oppose efforts of the State and County governments to divert revenues
from the City or to increase the unfunded service mandate of City taxpayers.
13. The City will work in partnership with its employees to ensure fair compensation and that
costs related to pension and other benefits are appropriately allocated between
employer and employees.
14. The City will vigorously defend itself and its taxpayers against frivolous lawsuits.
15. The City will seek additional intergovernmental funding and grants, with a priority on
funding one -time capital projects. Grant- funded projects that require multi -year support
will be reviewed by the Finance Committee
ADOPTED this 12' day of January, 2010.
ATTEST:
U\ ,
LEILANI I. BROWN
City Clerk
KEITH D. CURRY
Mayor of Newport Beach
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby
certify that the whole number of members of the City Council is seven; that the foregoing resolution,
being Resolution No. 2010.4 was duly and regularly introduced before and adopted by the City
Council of said City at a regular meeting of said Council, duly and regularly held on the 12th day of
January, 2010, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Selich, Rosansky, Henn, Webb, Gardner, Daigle, Mayor Curry
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 13th day of January, 2010.
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City Clerk
Newport Beach, California
(Seal)