The URL can be used to link to this page

Home My WebLink About2015-48 - Amending City Council Policy F-28 Regarding the Facilities Financial Planning ProgramRESOLUTION NO. 2015-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING CITY COUNCIL POLICY F -28 REGARDING THE FACILITIES FINANCIAL PLANNING PROGRAM WHEREAS, the City Of Newport Beach ( "City ") has established a long term plan for replacement of aging General Fund supported facilities and has established City Council Policy F -28 for the administration of the City's Facilities Financial Planning Program ( "Program "); WHEREAS, the primary focus of the Program is the replacement or major renovation of existing physical infrastructure; WHEREAS, recognizing that critical physical infrastructure needs to be replaced in perpetuity, the City strives to provide a consistent cash funding source to maintain its commitment to the Program while simultaneously adhering to the affordability ratios specified in the City's debt policy; and WHEREAS, the amount of projected revenue that is available in the General Fund for funding programs in any given year is an appropriate basis for determining the annual contribution level to the Program. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council of the City of Newport Beach hereby amends City Council Policy F -28 to provide that General Fund annual contributions to the Facilities Financial Planning Reserve Fund shall reflect a three percent (3 %) minimum contribution of the Total General Fund Revenue Budget rather than the Total General Fund Operating Budget as shown on the attached redline policy attached to this resolution, and incorporated by reference herein (Exhibit 1); Section 2: All prior versions of City Council Policy F -28 that are in conflict with the amendments adopted by this resolution are hereby repealed. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. Resolution No. 2015 -48 Page 2 of 2 Section 4: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 5: Except as expressly modified in this resolution, all other City Council Policies, sections, subsections, sentences, terms, clauses and phrases set forth in the Council Policy Manual shall remain unchanged and shall be in full force and effect. Section 6: The City Council finds the adoption of this resolution and the amendment of City Council Policy F -28 is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ADOPTED this 91h day of June, 2015. ATTEST: �� bq*r-- i Leilani I. Brown City Clerk Edward D. Selich Mayor Attachment: Amended City Council Policy F -28 FACILITIES FINANCIAL PLANNING PROGRAM PURPOSE F -28 To establish the policy for the administration of the City of Newport Beach's ("City") Facilities Financial Planning Program ( "Program "). DISCUSSION In addition to the annual Capital Improvement Program ( "CIP" ), the City has established a long term plan for replacement of aging General Fund supported facilities. The primary focus of the Pprogram is the replacement or major renovation of existing physical infrastructure. The addition of new facilities is also a goal of the Pprogram. The emphasis is on structures and adjacent grounds, rather than transportation, environmental, or other projects funded either in whole or in part by the General Fund. OBJECTIVES A. To insure that a long -term program addressing Iarge, non - recurring projects for replacement of facilities is addressed as part of the budget process each year. B. To insure that development fees, proceeds derived from redevelopment or redeployment of existing land and capital assets owned by the City, and other non - recurring revenues are dedicated to the replacement of infrastructure facilities, rather than ongoing operating expenses. C. To provide a consistent, level funding plan that will minimize the = peaks_ and valleys' in General Fund support levels for elements of the !!program. D. To insure that projects are properly prioritized and scheduled, taking into consideration the relative age, condition, and functional viability of current facilities; pairing of projects where prudent; and cost implications of immediate ' projects for the overall long -term Pprogram. E. Budgeting the cost of facilities while those facilities are in use is consistent with good government management practices. However, creating a legacy of 1 HM-1 excessive fixed costs for debt service is not. Therefore one of the objectives of this Pprogram is to insure that future generations will not be required to carry a disproportionate fiscal burden for previously completed projects. SOURCES AND USES OF FUNDS Funding for the Pprogram comes from development fees, proceeds derived from redevelopment or redeployment of existing land and capital assets owned by the City, contributions from individuals and organizations within the community, annual budget allocations from the General Fund, net proceeds of Certificates of Participation or other financing instruments, and investment earnings on temporarily idle funds. Program funds are used for actual site acquisition, design, construction, and directly related costs; as well as debt service expenses. POLICY AND PROCEDURE A. Each year, as part of the budget process, staff shall prepare an update of the Facilities Financial Planning Tool for review, modification, and approval by the City Council. B. Unless otherwise specified in individual development agreements, other governing documents, or as otherwise specifically directed by the City Council, all development fees received by the City will be dedicated to the Facilities Financial Planning Reserve fund. C. Prudent assumptions regarding revenue and expenditure growth, inflation, and all relevant factors will be included in each year's update of the Facilities Financial Planning Tool. D. General Fund contributions to the Program shall not be less than three percent j3� %l of the total General Fund Opefating— Revenue Budget. If there is a shortfall in General Fund revenue due to a decline in economic activity and it is necessary to reduce expenditures, General Fund contributions to the Facilities Financial Planning Program can be temporarily modified to maintain contributions under the three percent (3 %j threshold. 2 ffim E. The financing duration for any borrowed funds shall not exceed thir 301 years or the projected life of the new facility, whichever is less. F. The Facilities Financial Planning Tool may be amended by City Council action in the event of a natural disaster or financial crisis. Adopted - August 11, 2009 Amended - May 14, 2013 Amended - Tune 9, 2015 3 STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } 1, 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. 2015 -48 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 9th day of June, 2015, and that the same was so passed and adopted by the following vote, to wit: AYES: Council Member Peotter, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tern Dixon, Mayor Selich NAYS: None ABSENT: Council Member Petros IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 101h day of June, 2015. Asti ibmo\-� City Clerk Newport Beach, California (Seal)