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Home My WebLink AboutSS2 - Review of 14-15 Budget - Finance PowerPointReceived After Agenda Printed Agenda Item No. SS2 May 13, 2014 Council Presentation FY 2014 -15 Proposed Budget May 13, 2014 A Healthy City Budget is balanced No use of reserves for operations Better public safety — by adding to: Police Officers Paramedic ranks More investment in recreation, parks, greenery, streets Fewer full -time positions Revenues and Expenses GENERAL FUND Revenues $174.3 M Expenditures* $169.9 M * Excludes $5.9 M of rebudgeted Capital Improvement Projects. The total General Fund Budget with rebudgeted Cl Ps total $175,824,439. TOTAL Revenues $265.2 M Expenditures ** $257.2 M ** Excludes $21.4 Million of rebudgeted Capital Improvement Projects. The Total Budget with rebudgeted CIPs total $278,597,295. Discretionary Reserve Levels $140 $120 $100 OC $80 0 g $60 $40 $20 $0 06/30/2010 06/30/2011 06/30/2012 06/30/2013 06/30/2014 06/30/2015 Estimate Estimate Marina Park Sunset Ridge Park CDM Fire Station and more What Makes up our Discretionary Reserves? FY 12 -13 FY 13 -14 Est. MISCELLANEOUS Council Commitments STRATEGIC SAVINGS Facilities Financing Replacement Plan Sunset Ridge Park Marina Park Facilities Maintenance Plan Equipment Replacement Fund Information Technology Fund RISK MANAGEMENT CONTINGENCY RESERVES Contingency Reserve PERS Rate Reserve Unassigned Total Reserves $ 9,080,149 $ 8,451,857 26, 752, 367 (1,925,160) (3,745,398) 995,156 19, 322, 254 6,942,245 12, 837, 059 4,843,459 (7,131,757) 1,795,156 20, 765, 823 7,131, 252 13, 856, 398 20, 603, 201 22,134, 775 41, 321,103 5,000,000 - 32, 300, 392 602,820 FY 14-15 Est. $ 2,615,634 6,755,820 30,287 624,466 12, 607, 795 1,868,127 22, 532, 876 41, 321,103 562,358 $ 130,713,178 $111,2191973 $ 88,918,466 on Fiscal Year 2014 -15 Budget REVENUES Newport Beach Property Taxes by Sector • City budget: • FY 13 -14 Property Tax Revenue =$80 M Residential, 81.8% • FY 14 -15 Property Tax Revenue = $82.6 M'113.2% 82% of our property taxes come from residential real estate. Other (Industrial,_ Government Owned, Dry Farm), 2.6% Unsecured, 4.0% Commercial, 11.6% Where property taxes go... What you pay: • A home assessed at: $1,200,000 • Your basic levy is 1 %: $12,000 • City receives about 17% of that: $2,040 Per $1 — $0.3940 Newport -Mesa Unified General $0.1715 Newport Beach General Fund $0.1683 Educational Revenue Augmentation $0.1098 Coast Community College General Fund $0.0702 Orange County General Fund $0.0253 O.C. Sanitation #5 Operating $0.0225 O.C. Flood Control District $0.01742 O.C. Harbors, Beaches & Parks $0.01587 O.C. Department of Education — General Fund $0.00320 O.C. Transit Authority $0.00127 O.C. Vector Control District $0.00057 O.C. Cemetery Fund - General Assessed Valuation $as.OD $SOD $35.00 $30AD C $25.00 0 $2000 $15.OD $10.00 $5.00 $0.00 positive throughout the Recession O Ah Ab A^ ,y�A� ,(� ,p�'rO 1 y� ti �ry '�' ,N:+4 yO lO y6�� 1 ry of 'L� ti ti 4 b L@ LO L0� LO 'LO Newport Beach Sales Tax Breakdown • City budget: • FY 13 -14 Sales Tax Revenue = $30.1 M • FY 14 -15 Sales Tax Revenue = $31.6 M ( Q 4.93 %) Sales tax in OC is 8 %. State General Fund, 52.4% • $50,000 Vehicle (Taxable Sale) • $4,000 Sales Tax Collected (8 %) • $500 Stays in town (1%) Newport Beach is allocated 1/8 or 12.5% of the Sales Tax collected ($500) Auto dealers, restaurants, and retail shops are the community's largest sales tax generators. Public Safety, County 6.3% Realignment, 6.3% County Transportation, 19.5% Orange County I Transportation Authority 3.1% Comparing 4Q 2012 to 2013 $2.800K $2,400K $2,000K $1,600K $1,200K $800K $400K $OK 4012 Compared To 4013 Up 12.2% %1 4Q12 4Q13 Autos General Restaurants Business Food Fuel and and Consumer and and and Service Transportation Goods Hotels Industry Drugs Stations Up 19.5% Building and Construction Hotel Bed Taxes (TOT) City Budget: FY 13 -14 TOT Revenue = $17.3 M FY 14 -15 Property Tax Revenue = $18.3 M ( What a visitor pays: 3 -Night Stay at Hotel: Total Bed Tax is 10% of Room Charge: Of the 10 %, City receives 82 %: 5.9 %) $1,200 $120 WE Hotels such as The Resort at Pelican Hill, the Island, the Hyatt, the three Marriotts, and more are large TOT generators. So are short -term lodgings. Transient Occupancy Tax $20.00 $18.00 $16.00 $14.00 C $12.00 C _= $10.00 $8.00 $4.00 $2.00 $0.00 Transient Occupany Tax Receipts FY 07 -08 to FY 14 -15 FY 07 -08 FY 08 -09 FY 09 -10 FY 10 -11 FY 11 -12 FY 12 -13 FY 13 -14 FY 14 -15 Actual Actual Actual Actual Actual Actual Revised Proposed Total Revenues Up $26.7M or 11.2% J .sue' Fiscal Year 2014 -15 Budget EXPENDITURES Salaries and Benefits City Budget Salaries and Benefits FY 13 -14 = $126.2 M Salaries and Benefits FY 14 -15 = $131.9 M Typical Employee (non- safety) Earns $73,500 in wages City pays $19,400 towards purchase of health insurance City pays $11,700 or 15.9% towards pension Employee pays $8,000 or 10.9% towards pension Most significant changes: PERS rate increases of $794 K Increased health contribution of $566 K Capital Improvements Our largest projects (ongoing or planned) in FY 14 -15 are: Marina Park ($40 M) Sunset Ridge Park ($8.5 M) Streets and Roads ($24.5 M) Tidelands ($4.5 M) Funding sources can be General Fund, Tidelands Fund, Gas Tax, Grants, and more Sometimes we "carry over" funds for a project not complete on June 30, 2014. These are called "rebudgets" City Budget: Fiscal Year 13 -14 CIP $36.1 M $70.1 M Fiscal Year 14 -15 CIP $40.4 M $61.8 M Maintenance and Operations City Budget FY 13 -14 - M &O = $75.9 M FY 14 -15 - M &O = $81.7 M All of the City's contracts — from park maintenance to street sweeping to refuse collection to the Police Helicopter — are under M &O. So are contract building inspection, contract plan check, and water purchases, electricity, gas, and more. When we outsource, this moves expenditures from the Salaries side to the M &O side — so we're up from $39.11VI a decade ago to $75.91VI in FY 13 -14. M &O can go up when water purchase costs go up, when we add parks to our inventories, and more. Debt Service City Budget: FY 2013 -14 Debt Service: $8M (4.7% of Total General Fund Revenues) FY 2014 -15 Debt Service: $8M (4.6% of Total General Fund Revenues) The City has used debt over the years to fund marina improvements, the Central Library, and the Civic Center. Total debt service cost for the City is $81VI/year, net of a federal subsidy. Implied Credit Rating: Moody's = Aaa (Highest Quality) Standard and Poors' = AAA (Highest Quality) Fitch = AAA (Highest Quality) Total Expenditures Up $7.6M or 2.8% y '1 - - mok Nr I 20 -Ax maw 42 14 Fiscal Year 2014 -15 City Budget ABOUT PENSION COSTS The Numbers Funded Portion of Plan = $452 M Unfunded Act Liability = $275 M (June 30, 2012) PENS I ON V*2 -low Percent of UAL attributable to retired employees: 69% Percent of Normal Cost being paid by Employees 51% Amount paid by EEs in 2003: $0 Amount paid by EEs in 2014 -15: $7.4 M City's Total Pension Cost in 2003: $6.6 M City's Total Pension Cost in 2014 -15: $27.4 M* *$12.7 M of this number is the amortized payment on the unfunded liability and is associated with prior fiscal periods. Pension Progress ✓ Reduced overall staffing by over 100 positions since 2009 ✓Beat Governor Brown's goal of employees paying 50% of Normal Cost by 2018. FY 14 -15 is first budget year with NO EPMC ✓Total EE Contributions in 14 -15 = $7.4 million ✓Second and Third Pension Tiers Fixed amortization on Unfunded Liability / Bulk of Miscellaneous Plan Unfunded Liability paid in 21 Yrs ✓ Bulk of Safety Plan Unfunded Liability Paid in 25 Yrs t t�fi t� f ff f CHANGES IN FULL-TIME POSITIONS Historical Full -time Positions 860 840 820 800 O 0 760 a 0 a 740 720 700 680 660 MEN no 0 MENNEN ILMMMMMMMMMMMI 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fiscal Year FY 2014-15 Position Changes Full -time Position Changes, FY 14 v FY 15 736 Authorized Full -time Positions in FY 2013 -14 -10 Refuse Workers -2 Equipment Mechanics -1 Office Assistant -1 Legal Assistant 1 Custody Officer (restored) 1 Police Officer (Safety) 1 Paramedic Coordinator (Safety) 1 Park Patrol Officer 1 Public Works Inspector II 1 Code Enforcement Officer Trainee 1 Groundsworker (limited term) 729 Proposed Full -Time Positions in FY 2014 -15 6 Refuse Worker positions remain budgeted in FY 2014 -15, but can be considered limited term positions. Fiscal Year 2014 -15 City Budget NEW INITIATIVES POLICE FY 14 -15 Budget Update CAD /RMS Prisoner Realignment (AB109) Crime Suppression Unit Computer Aided Dispatch /Records Management System(CAD /RMS) Then and now... I ALTARIS (Records I CAD (Dispatch, Case Management Property System Number Generation) System, Involvement (Property, Evidence) Database) Crossroads (Traffic Filemaker (Reports, 1MS (]ail Reporting System) Logs) Management System) Document Imaging CARL (Case Mobiles (CAD (Digital Copy of Case Management) Interface, Mapper) File) Multiple Other User r & Task Specific ELETE (CLETS Crime Analysis I 31 Systems & Interface) Databases 11 1 The New IT Structure Overview of Our New IT Structure (One, Centralized, Interconnected System /Database) CAD /RMS Systems and associated databases now interconnected Enhanced Functionality Modern Software — compatibility, speed, security, etc. Adaptive Infrastructure —customize, add -on modules, etc. Eliminates duplication of efforts Management tools — auditing, crime analysis, dash boards One step closer to "'Paperless" Prisoner Realignment: Moving Forward AB 109 -ers actively committing crimes in our City Transitory population — more in surrounding cities Minimal financial support from the state ($5,500) Sweeps and compliance checks - over half re- arrested NBPD Lt. Jeff Brouwer working on AB 109 Summit Meeting Committee This budget completes our Crime Suppression Unit Crime Suppression Unit When complete will include 1 Sergeant and 4 Officers (final officer yet to be approved) Proactive /flexible unit focused on crime and quality of life issues Monitor early releases from prison, probationers, parolees, and recidivists Quick response team to current crime trends and hot - spots Work uniform, plain clothes, under cover operations, surveillances, bicycles, quads, foot beats, whatever the assignment requires Has already prevented crime NBFD: ENHANCING EMS Save Lives. Improve Patient Outcomes Improve paramedic response times and AILS intervention Paramedic on every fire apparatus using existing staff FF /EMT positions changed to FF /Paramedics Adding critical EMS program support: paramedic coordinator contract nurse, and Contract medical director (MD) P*` ;� COMMUNITY DEVELOPMENT $450,000,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 FISCAL YEAR BUILDING PERMIT VALUATIONS $297,337,000 $367,578,000 $382,563,000 Projecte FY2010 -11 FY2011 -12 FY2012 -13 FY2013 -14 Fiscal Year The Newport Dividend (from March 2014) Daily Average Dividend: $9,110 Total Dividend (To Date): $382,761 Original Total Dividend Projection: $1,774,000 Revised Total Divided Projection: $1,812,000 Valuation of Dividend (519114): $19,455,000 Est. Valuation on Dec. 12, '14: $92,145,000 Land Use Element Amendment Study Areas - Reference Map iui �a.i.,..m.u.l vi ITY of NEWPORT BEAC GENERALPLAN Figure LUi GENERALPLAN OVERVIEW MAP R..IG. ...... wk .. ve S�paum xevfmuY On.OVe - Ap6[�en�na Pe emnai -rA ip�evn. xeuJmu.i hvxMa -iFV ene� �m •.pace Pe Commm.ial p.IrkM1 aM Cori pore -Gm.rai taiu 7. -Ca AWn. - Pp�mpcmmmxgd C...m ar.i.I 01i Dik kl. Ppian Cemrare.i PXe IMwM1Yl ps4kb -MUWUi Nryop BUpgellp ObvM ® ..pnoh.MSip{uiry vrn Yi. W Lu Diwrlet. I�i]uoeuu Waal ®u x n Yubbe. 4.mVUdk antllmlMNianal LPgefNM -G�la W PmeM Isl(l.0 yx. I�pm Six. /R.W�Lp NIOp. -M- INNSnYY u.n. J m .eVwaa ,e p >I/.p,l..� LCP - Implementation Plan owners maximize! orderly aimize asocial coastol-de endent Ea= Encourage beneficial consistent ASSU[e p property- _ quality balanced omutually 2 o�.f eSOUf C eS q �' �. —� �--� opportunities c access a o = a� feasible -�a� Canyons � ��. — recreational Cw ao ECLD . state o private 1v C O =constitutionally people cm utilizationco�seivatio�CQ I procedures aD restore taking needs artificial O a = _ sions a 3 local sound yaccount-- rights LCP - Implementation Plan Task Estimated Completion Date Draft IP Administration /General Provisions June 2013 Land Use Regulations September2013 Property Development Regulations February 2014 Access and Resource Protection November 2014 Community Workshops November— January 2014 Notice of Intent /60 Day Review Period January — February 2015 Finalize Draft IP March —April 2015 Planning Commission Hearings May — June 2015 City Council Hearings July — August 2015 Submittal to Coastal Commission September 2015 Deemed Complete November 2015 Coastal Commission Staff Review May 2016 Coastal Commission Hearings June 2016 City Council Approval of Final IP August 2016 EW Pp H D O ,9G /G()R� City of Newport Beach Local Coastal Program Implementation Plan DRAFT r ;M RECREATION & SENIOR SERVICES ♦1y r ;M RECREATION & SENIOR SERVICES More Senior Programs Expand our case management /home assessment program Expand our health and wellness program offerings to include additional health education, resource fairs and health screenings Expand night time programming to accommodate working seniors and working family members CYC - Expanded Programming ■ Classes for the Working Woman • Friday Night Out • Expanded Music Programming • Adult Art Programming ■Harbor View ACE Program Y� 3 More Special Events Breakfast with Santa - NCCC Family Fun Days — Cliff Drive & Bayview Parks Movies in the Park — Grant Howald & Peninsula Parks And Fire Ring Education /Enforcement Beachfront Presence Educating public on charcoal only regulations & benefits Providing enforcement ��, �. Welcome. to-tlw3eacl� CHARCOAL ONLY y PERMITTED IN FIRE RINGS A Healthy City ' Balanced Budget CIP investment = $61.1 M Addressing pension costs — a record $7.4M Employee Contribution Conservative debt level — 4.6% of General Fund Revenues AAA Implied Credit Rating Smaller workforce — From 833 in '09 -10 to 729 in '14 -15 Adding to public safety Using saved -up cash for big projects — Marina Park, Sunset Ridge, Info Tech — end of June 2015 = still $89M What's Next? 5/27/14 Second budget review with staff at the study session (optional). Set the date for public hearing on budget appropriation. 6/10/14 Public hearing and adoption of FY 2014 -15 budget and adoption of GANN Appropriations limit. 7/1/14 Fiscal Year 2014 -15 begins. Questions &Comments City's budget documents can be accessed at: www.newportbeachca.gov/budget woo ►v a��v Fo�%