HomeMy WebLinkAbout22 - Fiscal Year 2022-23 Budget Adoption, Budget Public Hearing, Recommendations from the Finance Committee...CITY OF
NEWPORT BEACH
City Council Staff Report
TO:
FROM:
PREPARED BY:
PHONE:
June 14, 2022
Agenda Item No. 22
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
Scott Catlett, Finance Director/Treasurer,
scatlett@newportbeachca.gov
949-644-3123
TITLE: Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget
Adoption, Budget Public Hearing, Recommendations from the
Finance Committee, and Proposed Budget Revision Items; and City
Council Policy F2, Reserve Policy, and City Council Policy F-28,
Facilities and Harbor and Beaches Financial Planning Programs
ABSTRACT:
Following multiple opportunities for public comment both in front of the City Council and
the Finance Committee beginning in January, the City Council held a joint Study Session
with the Finance Committee to review the proposed fiscal year 2022-23 budget on
May 24, 2022. After detailed discussions at that meeting, no changes were made to the
budget as proposed. However, as a result of recent labor contract approvals and the
identification of minor errors and omissions in the proposed budget document, revisions
to the budget are proposed for approval. The revised General Fund budget continues to
be balanced. Approval of the revised budget will comply with the City Charter requirement
that the City Council adopt an annual budget by resolution each year by June 30.
RECOMMENDATION:
a) Conduct a public hearing regarding the City Manager's proposed budget for fiscal year
2022-23;
b) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
c) Consider the Finance Committee's budget recommendations;
d) Review and approve the proposed budget revisions;
e) Adopt Resolution No. 2022-42, A Resolution of the City Council of the City of Newport
Beach, California, Adopting the Budget for the 2022-23 Fiscal Year, as amended by
Item (c) above;
22-1
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 2
f) Review and approve the City Manager's recommended list of City of Newport Beach
position classifications and their salary ranges as required by the California Public
Employees' Retirement System (CaIPERS) and in accordance with 2 CCR § 570.5
(a)(1);
g) Receive and file the salary schedule for the Lifeguard Operations Assistant Chief
classification in the Lifeguard Management Association (LMA), which was erroneously
omitted from Exhibit A to the memorandum of understanding between the City of
Newport Beach and the LMA when reviewed and approved by the City Council on
May 10, 2022;
h) Approve Budget Amendment No. 23-001, appropriating structural surplus revenue to
one-time expenditure appropriations. Funds will be allocated to the CaIPERS
Unfunded Accrued Liability (UAL) additional payment for FY 2022-23, Facilities
Financial Plan, and FY 2023-24 Capital Improvement Projects; and
i) Adopt Resolution No. 2022-43, A Resolution of the City Council of the City of Newport
Beach, California, Amending City Council Policy F-2, Reserve Policy, and City Council
Policy F-28, Facilities and Harbor and Beaches Financial Planning Programs, to
incorporate revisions recommended by the Finance Committee and other minor edits.
DISCUSSION:
In accordance with the City Charter, the City Manager is presenting the City of Newport
Beach's (City's) fiscal year 2022-23 proposed operating and capital budget and fiscal
years 2022-2028 Capital Improvement Program (CIP). These documents can be found
on the City's website at the following location:
https://www.newportbeachca.gov/qovernment/departments/finance/city-budget-salary
A third component of the budget includes proposed revisions to the initial proposed
budget documents released in May. The proposed revisions are referred to as the
Proposed Budget Revisions and may represent revisions to either the operating or the
capital budgets. The City Council, upon adoption of the proposed fiscal year 2022-23
budget resolution and approval of the Proposed Budget Revisions, included as
Attachment A and Exhibit 1, respectively, will be authorizing the total proposed budget
appropriations for fiscal year 2022-23.
The revised operating budget totals $330.9 million and the capital budget totals
$71.0 million in fiscal year 2022-23, for a total of $402.0 million. Capital spending of
$183.6 million is anticipated over the six years covered by the CIP, subject to change with
each future annual budget process. The annual budget serves as the foundation for
financial planning and control and allows the City Council to prioritize expenditures in
alignment with community values. The budget as submitted includes:
22-2
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 3
• A stable local revenue base with projected fiscal year 2022-23 property tax revenues
growing at an estimated 6.4%.
• A healthy level of reserves that include a General Fund contingency reserve of
$58.8 million — an amount equal to 25% of the City's General Fund operating budget.
• Continuation of an aggressive pension payment plan with a level dollar payment of
$40 million and the intent to allocate an additional $5 million from the fiscal year 2022-
23 remaining surplus of revenues over expenditures, which based on current
projections will see the City's unfunded pension liability eliminated in less than
10 years.
• Significant contributions toward pension costs from the City's employees, with 23% of
the budgeted required minimum CalPERS payment being met through employee
payroll deductions.
• The fiscal year 2022-23 budget as proposed includes 741 full-time positions, an
increase of 11 full-time positions from the prior year, seven of which are conversions
of existing part-time positions to full-time positions. Part-time positions would decrease
by a total of 4.13 full-time equivalent positions (FTEs).
Budget Priorities
The fiscal year 2022-23 proposed budget continues to address the same core budget
priorities that have served the community well in recent years. The City endeavors to
maintain funding for all priorities in a manner that is consistent with or exceeds the funding
allocated in prior years.
Maintaining a Prosperous, Fiscally Sustainable, and Economically Viable City
This ongoing priority is to maintain the City's financial health by managing resources as
efficiently as possible, responsibly managing debt, and working collaboratively with
employees to share in the costs of pension obligations. The City Council has adopted
prudent fiscal policies concerning its investments, reserves, budget administration,
revenue initiatives, competitive contracting, facility replacement planning, and more.
Financial operations have produced net operating surpluses in the last 12 years due to
conservative budgeting, cooperative negotiation of labor agreements, and a stable and
growing tax revenue base. The City's annual surplus typically derives in equal measure
from higher revenue and lower expenditures than budgeted.
Providing High Quality Municipal Services that Residents Expect
This budget priority is an ongoing, organization -wide effort to maintain the City as a highly
performing municipal corporation that anticipates and responds to customer needs by
delivering public services better, faster, less expensively, and when customers need them.
22-3
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 4
Keeping Newport Beach Looking Great
The City's goal is to maintain a high -quality natural and physical environment by creating
aesthetically pleasing places in which to live, work, recreate, and visit. Key service areas
include maintaining high -quality community centers, parks, parkways and medians,
roads, trees, alleys, beaches, utility services, and other major infrastructure. The Public
Works Department will continue to provide safe, quality, cost-effective, and timely
improvements and maintain all City -owned public facilities such as libraries, piers, beach
and park restrooms, fire stations, and the Civic Center, including managing the contracts
for janitorial services, to support the residential, business, recreational, and social needs
of the community. The Utilities and Public Works Departments will continue the effective
operation, maintenance and repair of the City's water system, sewer system, storm drain
system, streets, sidewalks, and beaches. The Community Development Department will
continue to consistently implement codes, policies, and regulatory requirements to ensure
quality residential neighborhoods and commercial districts throughout the city.
Providing a Safe and Secure Neighborhood
The City's focus on public safety translates into top quality police, fire, emergency
medical, and lifeguard response, as well as working with the community to prevent crime,
fires, and the need for rescue. The City's fire prevention, emergency preparedness, and
other programs also support these efforts. The City's contracted homeless services
providers continue to assist people experiencing homelessness. Their outreach efforts,
coordinated with the City and County of Orange's resources, provide housing, health
care, and other services and opportunities.
Budget Submission and Finance Committee Recommendation
Pursuant to Section 1102 of the Newport Beach City Charter and City Council Policy F-3
— Budget Adoption and Administration, the proposed CIP and operating budget for the
2022-23 fiscal year was first submitted to the City Council and made available to the
public on May 5, 2022. Per City Council Resolution No. 2018-71, the Finance Committee
is responsible for reviewing and recommending approval of the operating portion of the
City Manager's proposed budget, excluding the Proposed Budget Revisions, to the City
Council for approval. The Finance Committee reviewed in detail the budget and
operations of select City departments in advance of its consideration of the fiscal year
2022-23 budget and held multiple meetings to discuss the budget in advance of the joint
Study Session with the City Council on May 24, 2022.
The Finance Committee (Committee) reviewed the funded status of the City's pension
plan based on the latest CalPERS actuarial valuation and considered pension funding
recommendations for fiscal year 2022-23 on November 4, 2021. The Committee next
reviewed the City's Long -Range Financial Forecast update on January 19, 2022. On
February 9, 2022, the Committee reviewed the CIP funding strategy, followed by a review
of the Facilities Financial Plan. Finally, the Committee reviewed the revenue assumptions
used to develop the fiscal year 2022-23 operating budget on March 10, 2022, reviewed
the proposed operating budget on April 14, 2022, and reviewed the operating budget
detail found in the preliminary budget document on May 12, 2022.
22-4
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 5
This robust review process and numerous opportunities to receive public input on the
proposed budget help to ensure that the draft budget presented to the City Council is
fiscally sound and adequately detailed.
Following the joint Study Session of the City Council and the Finance Committee on
May 24, 2022, the Finance Committee met on May 26, 2022, to finalize its
recommendations to the City Council regarding the proposed fiscal year 2022-23 budget.
A motion was made to recommend the City Manager's proposed fiscal year 2022-23
budget to the City Council for approval as presented and to recommend allocation of the
$7.5 million structural budget surplus as detailed later in this staff report. The motion was
carried unanimously with a yes vote from all present members of the Finance Committee.
All Funds Budget Overview
The fiscal year 2022-23 proposed budget for all funds, including internal charges of
$37.0 million, and the Proposed Budget Revisions outlined in Attachment A, Exhibit 1, is
$402.0 million. The operating portion of the budget amounts to $330.9 million, which
represents a 7%, or $21.8 million increase over the prior year's adopted budget. These
amounts exclude interfund transfers, including the modified Tideland Operating Fund
transfers that were discussed at the May 24 joint Study Session. The fiscal year 2022-23
proposed budget totals $364.9 million after removing internal charges and transfers,
which reflects the total new spending approved by the budget as proposed.
A
B C=B-A D=C/A
2019-20 2020-21 2021-22
2022-23
ACTUAL ACTUAL ADOPTED
PROPOSED
EXPENDITURES EXPENDITURES EXPENDITURES
EXPENDITURES $VAR %VAR
OPERATING BUDGET $ 283,290,144 $ 298,036,446 $ 309,114,306 $ 330,926,423 $ 21,812,117 7.06%
CIP PROJECTS*
New Appropriations
28,589,680
44,044,662
35,506,078
71,030,292
$ 35,524,214
100.05%
TOTAL BUDGET
$ 311,879,824 $
342,081,108 $
344,620,384 $
401,956,715
$ 57,336,331
16.64%
Less Internal Charges
(30,168,600)
(30,026,982)
(35,799,343)
(37,014,854)
$ (1,215,511)
3.40%
NET TOTAL BUDGET
$ 281,711,224 $
312,054,126 $
308,821,041 $
364,941,861
$ 56,120,820
18.17%
Capital Improvement Program Expenditures
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. Specific
project plans for the Capital Improvement Program are discussed in more detail in the
CIP budget volume.
New appropriations for capital improvement projects included in the proposed budget
amount to $71.0 million. Unlike the operating budget, capital improvement appropriations
are expended over multiple fiscal years due to timing considerations related to the ebb
and flow of large construction projects that require environmental review, coordination
with outside entities (public utilities), and design/policy considerations.
22-5
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 6
The estimated total appropriations for capital projects will be approximately $103.4 million
when the estimated re -budgeting of capital projects is included with the new
appropriations. This amount will be increased by the balance of any unexpended
purchase orders for projects currently in process. Prior year carry forward capital
appropriations are supported by resources reserved and carried forward to offset those
expenditures.
General Fund Budget Overview
The General Fund is the key operating fund within the City's budget. The General Fund
accounts 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 restricted for specific purposes. The
General Fund budget is balanced and includes total sources of $283.6 million, which
include operating revenues and interfund transfers in. Total uses of $276.1 million include
operating expenditures and interfund transfers out.
As illustrated in the table to follow, appropriations for operating expenditures are balanced
in relation to projected revenue sources, and one-time revenue sources and reserves
have not been utilized to balance the budget. The budget as proposed results in a
structural budget surplus of $7.5 million, which means that the surplus is not the result of
one-time revenues and is expected to continue in future fiscal years until such time as
additional ongoing expenditures are added to the budget.
BEGINNING UNRESTRICTED FUND BALANCE $ 24,081,225 $ 31,178,957 14,337,685 $(16,841,272) -54.0%
SOURCES:
Operating Revenues
235,934,635
253,370,149
265,030,502
11,660,353
4.6%
Less: Restricted Revenues
(957,206)
(1,128,513)
-
1,128,513
-
Prior Year Resources Carried Forward
2,075,632
3,072,666
(3,072,666)
Release of Restricted Funds
2,403,303
1,220,000
-
(1,220,000)
-
Transfers In from Other Funds
21,526,628
10,492,133
18,550,724
8,058,591
76.8%
TOTAL SOURCES
260,982,992
267,026,435
283,581,226
16,554,791
6.2%
USES:
Operating Expenditures
220,647,754
233,302,236
244,520,405
11,218,169
4.8%
Transfers Out
27,467,575
47,030,300
31,597,269
(15,433,031)
-32.8%
Resources Carried Forward to Next Fiscal Year
3,072,666
-
-
Addition to 25% Contingency Reserve
2,697,265
3,535,171
-
(3,535,171)
TOTAL USES
253,885,260
283,867,707
276,117,674
(7,750,033)
-2.7%
ENDING UNRESTRICTED FUND BALANCE
$ 31,178,957
$ 14,337,685
21,801,236
$ 7,463,552
52.1%
As discussed with the City Council previously, restricted revenues have been relocated
to special revenue funds in an effort to simplify the budget presentation. Those lines are
therefore blank in the proposed budget column in the table above. The significant
variance in transfers out from year to year is the result of sizable appropriations from
year-end surplus in the prior fiscal year as well as the change to the presentation of the
Tidelands Operating Fund transfers as previously discussed with the City Council.
22-6
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 7
General Fund Operating Revenues and Transfers In
The General Fund operating revenues for fiscal year 2022-23 are projected at
$265 million. This represents a 4.6% increase from the fiscal year 2021-22 projected
budget due largely to favorable economic trends.
Property Taxes
$122,229,980
$123,449,469
$131,403,081
$7,953,612
6.44%
Sales Tax
40,275,670
45,392,567
46,526,493
1,133,926
2.50%
Transient Occupancy Tax
19,027,493
25,573,145
27,788,728
2,215,583
8.66%
Other Taxes
10,815,117
12,824,996
12,174,567
(650,429)
-5.07%
Service Fees & Charges
19,046,329
20,010,449
22,005,339
1,994,890
9.97%
Parking Revenue
5,681,942
5,989,448
6,417,259
427,811
7.14%
Licenses & Permits
5,106,646
5,106,646
5,870,375
763,729
14.96%
Property Income
5,044,403
5,922,927
5,680,909
(242,018)
-4.09%
Fines & Penalties
3,292,102
3,379,886
3,870,567
490,681
14.52%
Intergovernmental Revenues
1,760,934
3,574,265
1,823,903
(1,750,362)
-48.97%
Investment Earnings
1,112,200
1,112,200
1,300,000
187,800
16.89%
Miscellaneous Revenues 734,148 1,034,151 169,280 (864,871)-83.63%
Total Revenues $234,126,964 $253,370,149 $265,030,502 $11,660,352 4.60%
PropertyT— The City's overall assessed valuation has been stable despite economic
downturns with an average growth of 6.5% over the past 20 years and is among the
highest in the county. Property taxes are the least volatile and last to show a deceleration
due to the inherent lag in the annual assessed property valuation process. Property taxes
are the City's single largest revenue source and represent almost 50% of all General
Fund revenues. Property tax revenues for fiscal year 2022-23 are projected to increase
by 6.4%. With the recent surge of home sales and prices, this category will likely continue
to improve, which bodes well for future secured property taxes.
Sales Tax — The second largest funding source for the General Fund is sales tax revenue,
making up 17.6% of General Fund revenues. The City's sales tax base is largely
generated from three main industry categories including Autos and Transportation,
General Consumer Goods, and Restaurants/Hotels. This projected budget includes
record high sales tax revenue, though growth is expected to slow compared to the rate
seen in fiscal year 2021-22.
Transient Occupancy Tax — Transient occupancy tax (TOT) was the City's most severely
impacted revenue source as the pandemic unfolded. While revenues from hotels have
not yet fully recovered to pre -pandemic levels, revenues from short term residential stays
have reached record levels, with total growth of 86.4% in the past three fiscal years. TOT
provides just over 10.5% of all General Fund revenues.
22-7
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 8
All Other Revenue — This category includes all other revenue sources other than the top
three (property tax, sales tax, and TOT). All Other Revenue is made up of the following:
• Other Taxes — real property transfer taxes, business license taxes, marine
charter taxes, and franchise fees.
• Service Fees & Charges — plan check fees, recreation classes, emergency
medical services fees, and numerous other cost -of -service fees.
• Parking Revenue — all General Fund related metered parking fees that are
assessed throughout the various parking zones of the City.
• Licenses and Permits — fees charged to process building related permits, street
closure permits, dog licenses, and police tow franchise fees.
• Property Income — City owned and managed income producing properties,
long-term ground leases to concessions, restaurants, hotels and other
businesses and organizations, and rental of City facilities to the public.
• Fines and Penalties — parking citation fines collected by the City, administrative
citation fines, fines remitted to the City from the County of Orange (County) for
vehicle code violations, and false alarm penalties.
• Intergovernmental Revenues — federal, state, and local grant revenues, which
includes, but is not limited to, the City's portion of the '/z cent sales tax revenue
paid to the County for public safety, state mandate reimbursements,
reimbursement for strike teams sent to assist with fires, and revenue sharing
with the County under the Waste Disposal Agreement (WDA).
• Investment Earnings — revenue generated from the investment of City funds.
• Miscellaneous Revenues — restricted revenue, damage to City property, bad
debt, donations and contributions, non -operating revenues such as proceeds
from the sale of materials and equipment, and other miscellaneous revenues.
Revenue projections are, as always, based on conservative assumptions to minimize
adverse deviation from expected results and to ensure that the City has adequate
financial resources to meet obligations and complete the programs approved by the City
Council.
Transfers In
Interfund transfers into the General Fund from other funds total $18.6 million, which relate
to reimbursement of costs incurred by the General Fund on behalf of other funds. These
transfers are from the Tidelands Fund to offset costs for activities, programs, and
functions whose primary purpose benefits the Tidelands. Newport Beach's Tidelands
include the ocean beaches where the visitor impacts are high, adding revenue but also
causing significant expense in terms of police, lifeguard, and emergency medical
response.
22-8
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 9
General Fund Operating Expenditures and Transfers Out
The total General Fund operating expenditures amount to $244.5 million ($276.1 million
with transfers). This represents an $18.6 million, or 8.2%, increase from the fiscal year
2021-22 adopted budget, which is made up of a number of increases and decreases to
expenditures. Decreases include the elimination of prior year one-time costs, one-time
grants, and the transfer of the outside counsel budget to an internal service fund as
reflected in the Risk Management line item in the table below.
Salary & Benefits
$149,193,631
$151,713,101
11 $163,463,321
$11,750,220
7.75%
Contract Services
24,088,461
24,702,901
26,873,734
2,170,833
8.79%
Grant Operating
600,000
600,000
548,485
(51,515)
-8.59%
Utilities
2,961,757
3,011,315
3,837,745
826,430
27.44%
Supplies & Materials
3,740,696
3,739,730
3,902,350
162,620
4.35%
Maintenance & Repair
8,822,276
12,640,923
13,282,330
641,407
5.07%
Travel & Training
813,368
814,868
833,758
18,890
2.32%
General Expenses
2,125,501
2,130,552
2,178,896
48,344
2.27%
Internal Svc Charge
25,977,295
25,078,890
28,190,206
3,111,316
12.41%
Risk Management
750,915
750,915
255,915
(495,000)
-65.92%
Capital Expenditures
785,138
780,438
1,153,666
373,228
47.82%
Total Revenues
$219,859,038
$225,963,632
$244,520,405
$18,556,772
8.21%
The majority of Salary and Benefit expenditure increases are the result of negotiated
salary increases for the City's various employee associations and a proposed increase to
the City's CalPERS UAL payment from $35 million to $40 million. Fiscal year 2022-23 will
mark another year of accelerated pension liability payments to CalPERS as opposed to
the lengthier, and consequently costlier, default payment options. This aggressive funding
plan will improve the City's funded status, further increase repayment efficiency of the
unfunded pension liability, and preserve financial flexibility over the long term.
Additionally, the overtime budgets for the Police and Fire Departments have been
increased by approximately $3 million as a result of the change in the Tidelands Operating
Fund reporting format. This increase does not allow for additional overtime spending, but
is required due to the way that costs allocated from these departments to the Tidelands
Operating Fund will now be shown consistent with the presentation format found in the
City's financial statements. Additionally, the removal of the $2.0 million vacancy factor
that had been included in the budget during the two fiscal years impacted by the pandemic
results in an increase in the budgeted personnel costs. Removal of the vacancy factor
returns the City to the historical practice of budgeting for full staffing.
General Fund operating expenditures excluding Salary & Benefits costs are increasing
by $6.8 million. This is primarily due to increased internal service charges of $3.1 million,
which are primarily related to insurance costs (the City had temporarily reduced funding
to the insurance internal service funds last fiscal year to draw down excess fund balance)
and increased utility costs of $826,000, which reflect rising rates for external utility
providers. Contract services and maintenance & repair costs are increasing due to routine
22-9
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 10
contract Consumer Price Index adjustments and various program enhancements detailed
later in this report - most notably the addition of $1.0 million for continuation of the Be
Well OC Mobile Crisis Response Team contract.
Proaram Enhancements
Contained in the proposed budget are enhancements to current programs and new
programs that are in line with the City Council's budget priorities. Included in these
enhancements are staffing changes, as further detailed in the following section of this
report, in the City Manager, Community Development, Finance, Library, Police, Public
Works, Recreation, and Utilities Departments. Other major enhancements included in the
budget as proposed include the Police Department's body worn camera program, funding
for the Be Well OC program, funding the Fire Department station alerting system project,
installation of a vehicle ventilation system in the remaining fire stations not yet equipped
with this system, and the purchase of heavy equipment to enhance sand management
capabilities.
Transfers Out
General Fund transfers out total $31.6 million transferred to other funds to address long-
term obligations in high priority areas including $8.6 million to the Facilities Financial Plan,
$5.5 million for General Fund capital improvement projects, $4.6 million to the Harbor &
Beaches Master Plan, and $2.5 million to the Facility Maintenance Plan. The proposed
allocation to the Facility Maintenance Plan is an increase of $1.0 million versus the prior
year that is designed to ensure that the City's facilities remain in excellent condition. The
remaining transfers primarily include the $9.9 million subsidy to the Tidelands Operating
Fund, which is newly shown due to the previously discussed presentation format change
for the interfund activities between the Tidelands Fund and the General Fund.
Citywide Staffing Changes (All Funds)
Net staffing changes will result in an increase of 11.0 full-time positions for a total of
741 full-time authorized positions and a decrease of 4.13 FTE part-time positions for an
authorized part-time total of 160.74 positions. Staffing changes are summarized in the
table below. FULL-TIME PART-TIME TOTAL
2021-22 REVISED BUDGET AUTHORIZED POSITIONS
2022-23 PROPOSED POSITION CHANGES
CITY MANAGER
Increase full-time Library Services Manager
Increase full-time Management Analyst
Increase full-time Management Fellow
Decrease part-time Management Analyst
Decrease part-time GIS Technical Aide
Increase part-time Information Technology Technician
COMMUNITY DEVELOPMENT
Increase new full-time Building Inspector II
Increase full-time Department Assistant
Increase full-time Assistant Planner
Decrease part-time Building Inspector II
Decrease part-time Department Assistant
Decrease part-time Planning Tech
730.0
1.00
1.00
0.50
0.00
0.00
0.00
1.00
1.00
1.00
0.00
0.00
0.00
164.9
0.00
0.00
0.00
894.9
1.00
1.00
0.50
(0.80) (0.80)
(0.50) (0.50)
0.50 0.50
0.00 1.00
0.00 1.00
0.00 1.00
(1.50) (1.50)
(1.00) (1.00)
(1.00) (1.00)
22-10
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 11
FULL-TIME
PART-TIME
TOTAL
FINANCE
Decrease full-time Accountant
(1.00)
0.00
(1.00)
Increase full-time Senior Accountant
1.00
0.00
1.00
Increase full-time Buyer
1.00
0.00
1.00
Increase full-time Department Assistant
1.00
0.00
1.00
Decrease full-time Fiscal Clerk
(1.00)
0.00
(1.00)
Increase full-time Senior Fiscal Clerk
0.50
0.00
0.50
Increase full-time Management Fellow
0.50
0.00
0.50
Decrease full-time Fiscal Specialist (Confidential)
(1.00)
0.00
(1.00)
Increase full-time Payroll Coordinator
1.00
0.00
1.00
Increase part-time Senior Fiscal Clerk
0.00
0.50
0.50
Decrease part-time Fiscal Specialist
0.00
(1.00)
(1.00)
Decrease part-time Student Aide
0.00
(1.00)
(1.00)
LIBRARY
Decrease full-time Department Assistant
(1.00)
0.00
(1.00)
Increase full-time Library Assistant
1.00
0.00
1.00
Decrease full-time Library Services Manager
(1.00)
0.00
(1.00)
POLICE
Increase new full-time Community Services Officer
1.00
0.00
1.00
PUBLIC WORKS
Increase full-time Associate Civil Engineer
1.00
0.00
1.00
Decrease full-time Groundworker II
(1.00)
0.00
(1.00)
Increase full-time Maintenance Worker II
1.00
0.00
1.00
Increase full-time Public Works Inspector 1
1.00
0.00
1.00
Increase part-time Associate Engineer
0.00
0.60
0.60
Increase part-time Maintenance Aide
0.00
2.02
2.02
RECREATION
Increase full-time Senior Fiscal Clerk
0.50
0.00
0.50
Increase full-time Office Assistant
1.00
0.00
1.00
Increase part-time Facilities Maintenance Worker II
0.00
0.45
0.45
Decrease part-time Senior Fiscal Clerk
0.00
(0.50)
(0.50)
Decrease part-time Office Assistant
0.00
(0.90)
(0.90)
UTILITIES
Decrease full-time SCADA Coordinator
(1.00)
0.00
(1.00)
Increase full-time Utilities Supervisor
1.00
0.00
1.00
Decrease full-time Field Superintendent II
(1.00)
0.00
(1.00)
Increase full-time Water Operations Superintendent
1.00
0.00
1.00
FY 23 PROPOSED POSITIONS
741.00
160.74
901.74
22-11
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 12
New full-time positions proposed for inclusion in the budget include the following:
1. Addition of one Community Services Officer in the Police Department to manage
the body worn camera program.
2. Addition of one Associate Civil Engineer in the Public Works Department to help
facilitate the timely delivery of the City's increasing level of capital improvement
projects.
3. One Management Fellow was added mid -year in fiscal year 2021-22 for the
Management Fellowship program.
4. One Public Works Inspector position is proposed that is fully offset by reduced
contract expenditures.
As previously discussed with the City Council, seven part-time positions are proposed to
be reclassified to fulltime positions in order to address recruitment and retention
challenges:
DepartmentPosition
Community Development
Limited Term Planning Technician
FTE Change
None
Community Development
Department Assistant
None
Community Development
Building Inspector (Combination)
(0.50)
City Manager
Management Analyst
0.20
Finance
Buyer
None
Finance / Recreation
Senior Fiscal Clerk (Combination)
None
Recreation
Total
Office Assistant
0.10
(0.20)
Additional minimal part-time staffing changes provide additional support for utilities
undergrounding projects and convert contract maintenance staff to City employees to
increase service levels and reduce turnover. Lastly, there are various position
reclassifications, as shown in the proposed position changes table on the previous page,
and salary adjustments included in the budget that do not increase the total FTE count
for the City and address departmental reorganizations and salary studies.
Chapter 2.28 of the Newport Beach Municipal Code (NBMC) addresses the establishment
of classifications and salary ranges. Section 2.28.030 states the City Manager shall
review and recommend changes to the City Council at least annually. It has been the
City's practice to bring forth the City Manager's recommendations annually during the
budget approval process.
22-12
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 13
In addition to the NBMC requirements, CalPERS requires all pay schedules (Attachment
B) to be publicly available. The pay schedule must meet the following requirements:
1) be duly approved and adopted by the employer's governing body in accordance with
requirements of applicable meeting laws; 2) identify the position title for every employee
position; 3) show the pay rate as a single amount or multiple amounts within a range for
each identified position; 4) indicate the time base, including, but not limited to, whether
the time base is hourly, daily, biweekly, monthly, bi-monthly, or annually; 5) be posted at
the office of the employer or immediately accessible and available for public review during
normal business hours or posted on the employer's website; 6) indicate an effective date
and date of any revisions; 7) be retained by the employer and available for public
inspection for not less than five years; and 8) not reference another document in lieu of
disclosing the pay rate. Council's approval of Attachment B, with its approval of the
budget, facilitates compliance with these requirements. Changes included in the salary
schedule not previously discussed include:
1. The letter "R" has been added to the grade number for designated retired annuitant
positions.
2. Salary ranges have been adjusted to adhere to the State of California minimum
wage increases, as necessary.
3. Salary schedules for the Council Appointees (City Manager, City Attorney, and City
Clerk) were increased by 2% in accordance with Resolution No. 2021-8.
4. Salary schedules for the Mayor and City Council were increased by 5% in
accordance with City Charter Section 402.
Also included as Attachment C is the salary schedule for the Lifeguard Operations
Assistant Chief, which was omitted from the 2022-2025 Lifeguard Management
Association MOU Salary Schedule in error when previously approved by the City Council.
This salary schedule reflects only the salary increases approved at that time.
Proposed Budget Revisions
Included as Exhibit 1 to Attachment A are the Proposed Budget Revisions. In the General
Fund, minor additions totaling $334,000 are proposed. These include $48,000 related to
labor contracts approved following publication of the proposed budget document,
$115,000 for an increase to the City's janitorial services contract approved following
publication of the proposed budget document, $145,000 to accommodate the significant
increase in fuel costs, and $26,000 related to eliminating the Student Aide job title and
reflecting all existing Student Aide positions as Intern positions.
In other funds, $1,500 was added for non -General Fund components of the janitorial
services contract, $41,000 was added for fuel costs, and $450,000 was added to reflect
the correct final project budget for the Junior Lifeguard Building CIP project. Revenues
were also added for other funds, including $450,000 of donated funds offsetting the
increase to the Junior Lifeguard Building CIP project and $936,000 for development -
agreement -related revenues in the Facilities Financial Plan Fund that were omitted in
error from the proposed budget document.
22-13
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 14
Structural Budget Surplus
The General Fund budget as proposed includes an excess of revenues over expenditures
of nearly $7.5 million. This surplus is structural in nature, meaning it is not the result of
one-time revenues, and is expected to continue in future fiscal years absent appropriation
of the surplus toward recurring expenditures. After adding program enhancements to the
proposed budget and increasing the allocations to the City's various savings programs, a
surplus remains. This is likely an unprecedented situation in the City's history, certainly in
the last 10-20 years. It is a testament to the strength of the City's tax base and the growth
seen in the revenues derived from the City's strong economic engine.
After reviewing the budget and considering possible uses for the surplus funds, the
Finance Committee recommends that the City Council appropriate the funds to one-time
uses as follows:
1. $5.0 million to prefund the typical year-end contribution to the City's UAL payment
to bring the total contribution for fiscal year 2022-23 to $45 million.
2. $1.0 million to be transferred to the Facilities Financial Plan Fund in anticipation of
the results of the park facilities study included in the proposed capital improvement
program, which is anticipated to identify new facility replacement needs.
3. $1.5 million to be transferred to the Capital Improvement Program Fund to be
allocated to future capital projects as part of the fiscal year 2023-24 budget
process.
A budget amendment has been included as Attachment D to implement these
recommendations.
It should be noted that by prefunding the additional UAL contribution, the City has fully
met its obligation toward the UAL reduction plan for fiscal year 2022-23 that has
previously been endorsed by the Finance Committee. Under City Council Policy F-5, half
of the projected fiscal year 2021-22 year-end surplus will be allocated to long-term
liabilities, which typically has meant the CalPERS UAL. Based on the feedback received
from the Finance Committee, staff anticipates returning to the City Council in October with
recommendations to allocate the entire year-end surplus to capital projects, though the
final recommendation will depend on the amount of the surplus, any subsequently
identified needs, and further consultation with the Finance Committee in September. An
allocation of the entire surplus to capital projects rather than 50% of the surplus going to
long-term liability reduction as dictated by City Council Policy F-5 will require a waiver of
City Council Policy F-5, as was done at year-end last October. The recent sizable
year-end surpluses have merited deviation from the policy given the unique
circumstances.
22-14
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 15
Proposed City Council Policy Revisions
The Resolution included as Attachment F would amend City Council Policy F-2 — Reserve
Policy and City Council Policy F-28 — Facilities and Harbor and Beaches Financial
Planning Programs to implement certain changes recommended by the Finance
Committee and other minor edits recommended by staff. Redlines of the proposed policy
revisions are included as Exhibits 1 and 2 to Attachment E.
City Council Policy F-28, last amended in 2019, governs the City's savings programs for
facilities and for the harbor and beaches. The proposed budget allocates $8.6 million and
$4.6 million, respectively, to these two programs in fiscal year 2022-23. The Finance
Committee comprehensively reviewed the adequacy of the contributions to these and
other savings programs within the budget as part of its Work Plan during fiscal year 2021-
22. As a result of that review, the following changes are recommended to City Council
Policy F-28:
1. The minimum contribution to the Facilities Financial Plan, currently set at 3% of
General Fund revenues, is proposed to be set at 3% of General Fund revenues
or the budgeted total debt service payment, whichever is greater. Current debt
service with payments for the fire station debt now included in the budget is
approximately $8.6 million per year, while the recent contribution amount of
$8.5 million exceeds 3% of General Fund revenues. Making this change ensures
that debt service payments do not require a drawdown in the Facilities Financial
Plan Fund's fund balance.
2. Language has been added to specify what an appropriate contribution amount
to the Harbor and Beaches Master Plan funding program should be. The
proposed language indicates that it should be adequate to fully fund the proposed
long-term facility replacement schedule and adjusted annually to account for the
future impact of inflation on the program's funding.
3. Language has been added to specify that when Facilities Financial Plan
contributions exceed the debt service payment amount for a given fiscal year
there should be a breakdown of the proposed transfer into the amount allocated
to debt service and the amount allocated to fund balance.
4. Language has been relocated from City Council Policy F-2 regarding the
minimum fund balance requirements for the Facilities Financial Plan Fund to
collocate all policy guidance regarding this program in one City Council Policy.
City Council Policy F-2, last amended in 2018, governs the City's reserve levels in various
funds including the General Fund, water and wastewater enterprise funds, and internal
service funds. This policy was recently reviewed by staff to ensure that it was consistent
with current practice and regulatory guidance as well as the aforementioned recent
discussions by the Finance Committee regarding the adequacy of the City's various
savings programs. As a result of that review, the following changes are recommended to
City Council Policy F-2:
22-15
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 16
1. Language has been relocated to City Council Policy F-28 regarding the minimum
fund balance requirements for the Facilities Financial Plan Fund.
2. A dated and not inflation -adjusted specific dollar amount for the annual contribution
to the Oil and Gas reserve for closing abandoned wells has been removed and
replaced by a requirement to set the contribution at an appropriate amount,
consistent with other similar reserves and savings programs.
3. The target confidence level utilized for setting annual funding requirements for the
City's workers compensation and liability insurance internal service funds has been
increased from 75% to 80% to be consistent with current practice and the
recommendation of staff and outside consultants.
Other minor adjustments to both policies have been proposed for clarity, consistency, or
to conform to current accounting guidance. None of these minor changes alter the
substantive content of the policies and all have been included in the redline edits shown.
FISCAL IMPACT:
In accordance with the City Charter, the City Manager is presenting the City of Newport
Beach's fiscal year 2022-23 proposed operating and capital budget and fiscal years 2022-
2028 Capital Improvement Program (CIP) Plan. The operating budget totals
$330.9 million, the capital budget totals $71.0 million in fiscal year 2022-23, and transfers
for all funds total $64.1. The proposed General Fund budget is balanced, with revenues
exceeding expenditures by $7.5 million prior to the recommended one-time
appropriations from the surplus discussed in this report.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action 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.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
22-16
Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget
Public Hearing, Recommendations from the Finance Committee, and Proposed Budget
Revision Items; and City Council Policy F2, Reserve Policy, and City Council Policy
F-28, Facilities and Harbor and Beaches Financial Planning Programs
June 14, 2022
Page 17
ATTACHMENTS:
Attachment A — Resolution No. 2022-42 and Exhibit 1 (Proposed Budget Revisions)
Attachment B — City Manager's Recommended List of City Position Classifications and
Salary Ranges
Attachment C — Salary Schedule for Lifeguard Operations Assistant Chief
Attachment D — Budget Amendment No. 23-001
Attachment E — Redline of City Council Policy F-2 and Redline of City Council Policy
F-28
/_iwssi'1miamom.7[1wo i orewasyna C3
22-17
Attachment A
Resolution No. 2022-42 and Exhibit 1 (Proposed Budget Revisions)
22-18
RESOLUTION NO. 2022-42
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADOPTING THE
BUDGET FOR THE 2022-23 FISCAL YEAR
WHEREAS, the City Manager of the City of Newport Beach ("City") has prepared
and submitted to the City Council a proposed annual budget for the Fiscal Year 2022-23
consistent with the City Charter Article XI (Fiscal Administration);
WHEREAS, the City's Finance Committee has reviewed and discussed the City
Manager's proposed annual budget for Fiscal Year 2022-23;
WHEREAS, the proposed annual budget was submitted to the City Council at least
thirty-five days (35) prior to the beginning of the fiscal year as required by City Charter
Section 1102 (Budget Submission to City Council);
WHEREAS, the City Council has reviewed the proposed annual budget,
determined the time for the holding of a public hearing thereon, and caused a notice of
the public hearing to be published not less than ten (10) days prior thereto in the official
newspaper of the City, and copies of the proposed annual budget were made available
for inspection by the public in the Office of the City Clerk and the Finance Department at
least ten (10) days prior to the public hearing;
WHEREAS, the City Council held a public hearing on the proposed budget on June
14, 2022, and has made such revisions to the proposed budget as deemed advisable;
WHEREAS, the City Manager has the authority to approve budget increases not
to exceed Ten Thousand Dollars ($10,000) in any Budget Activity or Capital Project, in
accordance with City Council Policy F-3 (Budget Adoption and Administration);
WHEREAS, the City Manager may accept certain donations and grants on behalf
of the City and appropriate funds for the purpose intended, in accordance with City
Council Policies;
WHEREAS, all requirements of the City Charter and Newport Beach Municipal
Code relating to the preparation and consideration of the annual budget and
establishment of employee salary ranges have been complied with; and
WHEREAS, all appropriations in the Capital Improvement Budget for projects
currently underway and remaining unexpended as of June 30, 2022, as approved by the
City Council in prior years, are hereby appropriated to the 2022-23 Fiscal Year.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
22-19
Resolution No. 2022-
Page 2 of 4
Section 1: The City Council does hereby adopt the budget of the City of Newport
Beach for the 2022-23 Fiscal Year, including employee salary ranges contained therein,
and as revised by the City Council via the proposed budget revisions. Total new
appropriations of $401,129,898 ($364,115,044 without internal charges) plus any items
on the approved proposed budget revisions attached as Exhibit 1, and incorporated
herein by reference, have been allocated to the following funds in the amounts hereinafter
shown:
010
012
100
101
105
110
111
120
121
122
126
135
160
164
166
513
532
536
562
571
701
702
711
712
748
749
750
751
752
760
762
764
765
800
831
Operating
Capital
Total
Fund
Expenditures
Budget
Budget
General Fund
244,186,089
-
244,186,089
General Fund Capital Projects
-
7,030,000
7,030,000
Tidelands Operating Fund
3,677,993
1,975,000
5,652,993
Harbor & Beaches Capital Plan Fund
-
3,471,406
3,471,406
Asset Forfeiture Fund
65,000
-
65,000
OTS Grant Fun
67,773
-
67,773
SLESF - COPS Fund
200,000
-
200,000
CDBG Fund
394,134
-
394,134
State Gas Tax Fund
-
2,075,000
2,075,000
Measure M 2
-
1,857,000
1,857,000
SB1 Gas Tax RMRA Fund
-
2,000,000
2,000,000
Misc. Cooperative Projects
-
8,052,000
8,052,000
Environmental Liability Fund
684,738
-
684,738
Fostering Interest in Nature (FiiN) Fund
147,000
-
147,000
American Rescue Plan Act Fund
-
10,100,000
10,100,000
Facilities Financing Plan Fund
-
6,900,000
6,900,000
Fire Station Rebuild
-
900,000
900,000
Neighborhood Enhancement
Parks & Community Centers
Facilities Maintenance Plan (FMP)
Water Enterprise Fund
Water Capital Fund
Wastewater Enterprise Fund
Wastewater Capital Fund
Other Insurance Fund
Uninsured Claims Reserve
Workers Comp Reserve
General Liability Reserve
Equipment Maintenance
Compensated Absence Fund
Retiree Medical Fund Res
Information Technology Fund - Operations
Information Technology Fund - Strategic
Debt Service Fund
Ackerman Donation Fund
14,121,434
14,121,434
2,350,000
2,350,000
2,500,000
2,500,000
28,404,922
400,000
28,804,922
-
4,869,000
4,869,000
4,884,150
100,000
4,984,150
-
1,500,000
1.500,000
2,551,666
-
2,551,666
1,845,000
-
1,845,000
3,958,151
-
3,958,151
6,898,808
-
6,898,808
5,574,776
379,452
5,954,228
2,030,000
-
2,030,000
7,078,328
-
7,078,328
5,731,277
-
5,731,277
1,346,849
-
1,346,849
10,817,953
-
10,817,953
5,000
-
5,000
330,549,606
70,580,292
401,129,898
22-20
Resolution No. 2022-
Page 3 of 4
Section 2: An interfund transfer is a governmental accounting term used to
describe an internal flow of resources between the funds listed below and these transfers
do not constitute expenditures by the City. The total approved interfund transfers include
the following amounts by fund:
010
012
100
101
167
513
562
571
701
702
752
800
Fund
General Fund
General Fund Capital Projects
Tidelands Operating Fund
Harbor & Beaches Capital Plan Fund
Oceanfront Encroachment Fund
Facilities Financing Plan Fund
Parks & Community Centers
Facilities Maintenance Plan (FMP)
Water Enterprise Fund
Water Capital Fund
Equipment Maintenance
Debt Service Fund
Transfers In
Transfers Out
17,300,724
31,597,269
6,030,000
-
9,987, 817
17, 300,724
4,600,000
-
-
500,000
8,600, 000
11, 027, 620
2,350,000
-
2,500,000
-
-
3,637,843
3,637, 843 -
379,452 -
8,677,620 -
64,063,456 64,063,456
Section 3: An interfund reimbursement is an accounting term to describe
"repayments from funds responsible for particular expenditures" to the funds that initially
paid for them. The transfer into the General Fund, from the Tidelands Operating Fund,
as described in Section 2 shall be reclassified as an interfund reimbursement when actual
expenditures are known at the end of the fiscal year.
Section 4: A copy of the approved budget, certified by the City Clerk shall be
filed with the persons retained by the City Council to perform auditing functions for the
City Council, and a further copy shall be placed, and shall remain on file, in the Office of
the City Clerk where it shall be available for public inspection.
Section 5: The budget so certified shall be reproduced and copies made
available for the use of the public and of departments, offices, and agencies in the City.
Section 6: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
22-21
Resolution No. 2022-
Page 4 of 4
Section 7: 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 or phrases be declared invalid or
unconstitutional.
Section 8: The City Council finds the adoption of this resolution 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, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Section 9: This resolution, and the salary ranges contained therein, shall take
effect immediately upon its adoption by the City Council, and the City Clerk shall certify
the vote adopting the resolution.
ADOPTED this 14th day of June, 2022.
Kevin Muldoon
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
a."-- C , P o"
Aaron C. Harp
City Attorney
Attachment: Exhibit 1 - Proposed Budget Revisions
22-22
EXHIBIT 1
PROPOSED BUDGET REVISIONS
FISCAL YEAR 2022-23
GENERALFUND
Budget
Increase (Decrease)
Expenditures
1 Fuel Costs
$
145,179
2 Student Aides reclassified to Interns
$
25,966
3 Janitorial Services
$
114,993
_
4 Lifeguard Management Association MOU
$
38,626
5 Ci -Clerk_A reement --
- - - -- - - - -- $ -
--- 9,553
Total Expenditure Budget Changes $ 334,316
Revenue
1
2
3 -- _
Total Revenue Budget Changes $ -
Total General Fund Changes: $ (334,316)
���iiL�i���_►
Budget
Increase (Decrease)
Expenditures
1
Janitorial Services-. Fund 701 (Water Enterprise Fund)
$
1,000
2
Janitorial Services - Fund 711 (Wasterwater Enterprise Fund)
$
_
501
3
Fuel Budgets - Fund 701 (Water Enterprise Fund)
$
26,000
4
. _. - _-_
Fuel Budgets - Fund 752 C[Equipment Fund)
$
15,000
5
CIP-erect -19F13 Junior Lifeguards Building
—
$
4501000
6
Total Expenditure Budget Changes
$
492,501
Revenue
1
Park Zone 9 - Residence at Newport Center
$
846,076
2
Park Zone 10 - Estimated Parcel Maps
$
90,000
3
Contributions Fund -19F13 Junior Lifeguards Building
$
450,000
Total Revenue Budget Changes
$
1,386,076
Total Other Fund Changes:
$
893,575
22-23
Attachment B
City Manager's Recommended List of City Position Classifications and Salary Ranges
22-24
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
01/01/2022
ACCOUNTANT
PROFESSIONAL TECHNICAL
30
1
$
34.15
$ 71,039
2
$
35.85
$ 74,559
3
$
37.64
$ 78,297
4
$
39.56
$ 82,275
5
$
41.49
$ 86,303
6
$
43.60
$ 90,692
7
$
45.71
$ 95,080
8
$
47.98
$ 99,806
01/01/2022
ACCOUNTANT, SENIOR
PROFESSIONAL TECHNICAL
31
1
$
39.23
$ 81,600
2
$
41.22
$ 85,748
3
$
43.25
$ 89,968
4
$
45.46
$ 94,550
5
$
47.72
$ 99,251
6
$
50.09
$ 104,195
7
$
52.57
$ 109,355
8
$
55.21
$ 114,829
01/15/2022
ADMINISTRATIVE MANAGER
KEY&MGT, DIVISION MGMT
04B
1
$
51.74
$ 107,613
2
$
54.36
$ 113,068
3
$
57.02
$ 118,596
4
$
59.89
$ 124,562
5
$
62.88
$ 130,796
01/15/2022
ADMINISTRATIVE MANAGER'
KEY&MGT, DIVISION MGMT
99
1
$
78.13
$ 162,502
01/01/2022
ASSISTANT, ADMINISTRATIVE
CITY EMPLOYEES
75
1
$
30.64
$ 63,732
2
$
32.17
$ 66,915
3
$
33.77
$ 70,243
4
$
35.44
$ 73,715
5
$
37.23
$ 77,429
6
$
39.07
$ 81,263
7
$
41.06
$ 85,410
8
$
43.06
$ 89,558
01/15/2022
ASSISTANT, ADMINISTRATIVE (K&M)
KEY&MGT, CONFIDENTIAL
05
1
$
31.13
$ 64,753
2
$
32.69
$ 67,992
3
$
34.32
$ 71,377
4
$
36.06
$ 75,005
5
$
37.80
$ 78,634
6
$
39.74
$ 82,652
7
$
41.73
$ 86,792
8
$
43.83
$ 91,175
01/15/2022
ASSISTANT, ADMINISTRATIVE P/T
PART-TIME EMPLOYEES
05E
1
$
29.50
$ 61,368
2
$
30.97
$ 64,421
3
$
32.51
$ 67,630
4
$
34.17
$ 71,082
5
$
35.82
$ 74,513
6
$
37.65
$ 78,319
7
$
39.54
$ 82,236
8
$
41.54
$ 86,397
01/01/2022
ASSISTANT, DEPARTMENT
CITY EMPLOYEES
55
1
$
24.59
$ 51,145
2
$
25.81
$ 53,677
3
$
27.08
$ 56,329
4
$
28.44
$ 59,151
Proposed Citywide Salary Schedule
Page 1 of 39
June 14, 2022
22-25
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
5
$
29.88
$ 62,141
6
$
31.36
$ 65,227
7
$
32.92
$ 68,483
8
$
34.57
$ 71,907
01/15/2022
ASSISTANT, DEPARTMENT P/T
PART-TIME EMPLOYEES
55
1
$
23.13
$ 48,111
2
$
24.30
$ 50,546
3
$
25.51
$ 53,069
4
$
26.79
$ 55,725
5
$
28.13
$ 58,512
6
$
29.54
$ 61,434
7
$
31.01
$ 64,510
8
$
32.56
$ 67,719
01/15/2022
ASSISTANT, EXECUTIVE
KEY&MGT, CONFIDENTIAL
08A
1
$
34.21
$ 71,157
2
$
35.92
$ 74,713
3
$
37.69
$ 78,390
4
$
39.58
$ 82,335
5
$
41.61
$ 86,548
6
$
43.61
$ 90,712
7
$
45.87
$ 95,412
8
$
48.14
$ 100,137
01/01/2022
ASSISTANT, OFFICE
CITY EMPLOYEES
15
1
$
21.02
$ 43,718
2
$
22.07
$ 45,912
3
$
23.19
$ 48,227
4
$
24.36
$ 50,663
5
$
25.56
$ 53,171
6
$
26.85
$ 55,847
7
$
28.17
$ 58,596
8
$
29.59
$ 61,538
01/15/2022
ASSISTANT, OFFICE P/T
PART-TIME EMPLOYEES
15
1
$
19.75
$ 41,074
2
$
20.79
$ 43,243
3
$
21.82
$ 45,389
4
$
22.90
$ 47,624
5
$
24.05
$ 50,015
6
$
25.25
$ 52,515
7
$
26.51
$ 55,149
8
$
27.85
$ 57,937
01/15/2022
BUDGET ANALYST
KEY&MGT, CONFIDENTIAL
15B
1
$
39.92
$ 83,042
2
$
41.91
$ 87,181
3
$
44.01
$ 91,540
4
$
46.19
$ 96,070
5
$
48.48
$ 100,843
6
$
50.93
$ 105,933
7
$
53.45
$ 111,168
8
$
56.15
$ 116,794
01/15/2022
BUDGET ANALYST, SENIOR
KEY&MGT, CONFIDENTIAL
25
1
$
46.19
$ 96,070
2
$
48.48
$ 100,843
3
$
50.94
$ 105,957
4
$
53.45
$ 111,168
5
$
56.15
$ 116,794
6
$
58.95
$ 122,614
Proposed Citywide Salary Schedule
Page 2 of 39
June 14, 2022
22-26
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
7
$
61.90
$ 128,751
8
$
65.01
$ 135,229
01/01/2022
BUILDING INSPECTOR I
PROFESSIONAL TECHNICAL
33A
1
$
33.69
$ 70,074
2
$
35.36
$ 73,547
3
$
37.13
$ 77,236
4
$
39.02
$ 81,167
5
$
40.94
$ 85,145
6
$
42.99
$ 89,413
7
$
45.13
$ 93,874
8
$
47.40
$ 98,601
01/01/2022
BUILDING INSPECTOR II
PROFESSIONAL TECHNICAL
36
1
$
36.19
$ 75,283
2
$
38.03
$ 79,093
3
$
39.93
$ 83,047
4
$
41.93
$ 87,219
5
$
44.02
$ 91,559
6
$
46.21
$ 96,117
7
$
48.52
$ 100,915
8
$
50.95
$ 105,979
01/15/2022
BUILDING INSPECTOR II P/T
PART-TIME EMPLOYEES
36
1
$
35.56
$ 73,960
2
$
37.36
$ 77,700
3
$
39.22
$ 81,572
4
$
41.20
$ 85,689
5
$
43.24
$ 89,938
6
$
45.40
$ 94,430
7
$
47.67
$ 99,144
8
$
50.05
$ 104,101
01/01/2022
BUILDING INSPECTOR, PRINCIPAL
PROFESSIONAL TECHNICAL
99
1
$
42.91
$ 89,244
2
$
45.04
$ 93,681
3
$
47.29
$ 98,359
4
$
49.63
$ 103,230
5
$
52.12
$ 108,415
6
$
54.74
$ 113,864
7
$
57.47
$ 119,531
8
$
60.37
$ 125,560
01/15/2022
BUILDING INSPECTOR, PRINCIPAL P/T
PART-TIME EMPLOYEES
37R
1
$
58.27
$ 121,208
01/01/2022
BUILDING INSPECTOR, SENIOR
PROFESSIONAL TECHNICAL
44A
1
$
38.92
$ 80,949
2
$
40.85
$ 84,976
3
$
42.93
$ 89,293
4
$
45.05
$ 93,706
5
$
47.32
$ 98,431
6
$
49.63
$ 103,230
7
$
52.18
$ 108,535
8
$
54.78
$ 113,937
01/01/2022
BUYER
CITY EMPLOYEES
01
1
$
30.71
$ 63,877
2
$
32.25
$ 67,084
3
$
33.85
$ 70,412
4
$
35.56
$ 73,956
5
$
37.33
$ 77,646
6
$
39.20
$ 81,528
7
$
41.17
$ 85,628
Proposed Citywide Salary Schedule
Page 3 of 39
June 14, 2022
22-27
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE POSITION TITLE
01/01/2022 BUYER, SENIOR
06/18/2022 CITY ATTORNEY
01/15/2022 CITY ATTORNEY, ASSISTANT
01/15/2022 CITY ATTORNEY, DEPUTY
06/18/2022 CITY CLERK
01/15/2022 CITY CLERK, ASSISTANT
01/15/2022 CITY CLERK, ASSISTANT P/T
01/15/2022 CITY CLERK, DEPUTY
0611812022 CITY COUNCIL MEMBER
01/15/2022 CITY ENGINEER, ASSISTANT
Proposed Citywide Salary Schedule
EE GROUP
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
8
$
43.18
$ 89,823
CITY EMPLOYEES
55A
1
$
36.24
$ 75,379
2
$
38.06
$ 79,165
3
$
39.94
$ 83,071
4
$
41.94
$ 87,243
5
$
44.03
$ 91,583
6
$
46.23
$ 96,165
7
$
48.53
$ 100,940
8
$
50.99
$ 106,052
APPOINTEES
18
0
$
88.42
$ 183,907
1
$
110.52
$ 229,872
2
$
132.61
$ 275,837
KEY&MGT, EXECUTIVE
22A
0
$
72.08
$ 149,921
1
$
90.09
$ 187,382
2
$
108.10
$ 224,843
KEY&MGT, DIVISION MGMT
16E
1
$
69.59
$ 144,751
2
$
73.08
$ 152,008
3
$
76.73
$ 159,605
4
$
80.57
$ 167,593
5
$
84.57
$ 175,897
APPOINTEES
01
0
$
53.07
$ 110,376
1
$
66.33
$ 137,965
2
$
79.59
$ 165,552
KEY&MGT, CONFIDENTIAL
71
1
$
42.58
$ 88,560
2
$
44.71
$ 92,997
3
$
46.95
$ 97,647
4
$
49.30
$ 102,534
5
$
51.76
$ 107,658
6
$
54.35
$ 113,043
7
$
57.06
$ 118,689
8
$
59.93
$ 124,644
PART-TIME EMPLOYEES
03
1
$
33.59
$ 69,866
2
$
35.29
$ 73,406
3
$
37.06
$ 77,080
4
$
38.91
$ 80,931
5
$
40.87
$ 85,003
6
$
42.91
$ 89,252
7
$
45.06
$ 93,722
8
$
47.32
$ 98,436
KEY&MGT, CONFIDENTIAL
07
1
$
32.70
$ 68,016
2
$
34.33
$ 71,401
3
$
36.07
$ 75,030
4
$
37.84
$ 78,707
5
$
39.75
$ 82,676
6
$
41.74
$ 86,816
7
$
43.86
$ 91,224
8
$
46.02
$ 95,729
CITY COUNCIL
01
1
-
$ 18,790
KEY&MGT, DIVISION MGMT
15A
1
$
71.28
$ 148,257
2
$
74.83
$ 155,636
Page 4 of 39
June 14, 2022
22-28
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
3
$
78.57
$ 163,428
4
$
82.51
$ 171,611
5
$
86.63
$ 180,183
0611812022
CITY MANAGER
APPOINTEES
19
0
$
101.91
$ 211,966
1
$
127.38
$ 264,951
2
$
152.85
$ 317,937
01/15/2022
CITY MANAGER, ASSISTANT
KEY&MGT, EXECUTIVE
17A
0
$
84.33
$ 175,410
1
$
105.41
$ 219,244
2
$
126.48
$ 263,079
01/15/2022
CITY MANAGER, DEPUTY
KEY&MGT, EXECUTIVE
11E
0
$
66.01
$ 137,299
1
$
77.30
$ 160,775
2
$
88.58
$ 184,252
01/15/2022
CITY TRAFFIC ENGINEER
KEY&MGT, DIVISION MGMT
15E
1
$
71.28
$ 148,257
2
$
74.83
$ 155,636
3
$
78.57
$ 163,428
4
$
82.51
$ 171,611
5
$
86.63
$ 180,183
01/01/2022
CIVIL ENGINEER
PROFESSIONAL TECHNICAL
95
1
$
47.40
$ 98,601
2
$
49.83
$ 103,640
3
$
52.28
$ 108,752
4
$
54.89
$ 114,178
5
$
57.66
$ 119,941
6
$
60.55
$ 125,946
7
$
63.55
$ 132,191
8
$
66.74
$ 138,822
01/01/2022
CIVIL ENGINEER, ASSOCIATE
PROFESSIONAL TECHNICAL
90
1
$
45.20
$ 94,019
2
$
47.45
$ 98,697
3
$
49.85
$ 103,689
4
$
52.31
$ 108,801
5
$
54.93
$ 114,250
6
$
57.68
$ 119,965
7
$
60.57
$ 125,993
8
$
63.56
$ 132,215
01/15/2022
CIVIL ENGINEER, PRINCIPAL
KEY&MGT, DIVISION MGMT
13
1
$
67.86
$ 141,146
2
$
71.25
$ 148,208
3
$
74.80
$ 155,587
4
$
78.55
$ 163,380
5
$
82.48
$ 171,562
01/01/2022
CIVIL ENGINEER, SENIOR
PROFESSIONAL TECHNICAL
98
1
$
52.23
$ 108,632
2
$
54.81
$ 114,009
3
$
57.56
$ 119,724
4
$
60.43
$ 125,704
5
$
63.47
$ 132,022
6
$
66.64
$ 138,605
7
$
69.96
$ 145,526
8
$
73.47
$ 152,808
01/15/2022
CIVIL ENGINEER, SENIOR (K&M)
KEY&MGT, CONFIDENTIAL
04A
1
$
52.74
$ 109,707
2
$
55.35
$ 115,138
3
$
58.13
$ 120,909
4
$
61.03
$ 126,949
Proposed Citywide Salary Schedule
Page 5 of 39
June 14, 2022
22-29
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE POSITION TITLE
01/15/2022 CIVIL ENGINEER, SENIOR PT
01/01/2022 CODE ENFORCEMENT OFFICER I
01/15/2022 CODE ENFORCEMENT OFFICER I P/T
01/01/2022 CODE ENFORCEMENT OFFICER II
01/01/2022 CODE ENFORCEMENT OFFICER TRAINEE
EE GROUP
PART-TIME EMPLOYEES
PROFESSIONAL TECHNICAL
PART-TIME EMPLOYEES
PROFESSIONAL TECHNICAL
PROFESSIONAL TECHNICAL
01/15/2022 CODE ENFORCEMENT OFFICER TRAINEE P/T PART-TIME EMPLOYEES
01/01/2022 CODE ENFORCEMENT OFFICER, SENIOR
Proposed Citywide Salary Schedule
PROFESSIONAL TECHNICAL
Page 6 of 39
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
5
$
64.10
$ 133,329
6
$
67.30
$ 139,977
7
$
70.66
$ 146,967
8
$
74.19
$ 154,321
47R
1
$
70.92
$ 147,513
23
1
$
28.58
$ 59,440
2
$
30.00
$ 62,406
3
$
31.51
$ 65,541
4
$
33.10
$ 68,844
5
$
34.74
$ 72,269
6
$
36.49
$ 75,909
7
$
38.30
$ 79,671
8
$
40.22
$ 83,650
23
1
$
27.34
$ 56,875
2
$
28.72
$ 59,730
3
$
30.15
$ 62,717
4
$
31.67
$ 65,882
5
$
33.25
$ 69,157
6
$
34.93
$ 72,654
7
$
36.65
$ 76,239
8
$
38.48
$ 80,045
35A
1
$
32.88
$ 68,386
2
$
34.52
$ 71,810
3
$
36.25
$ 75,404
4
$
38.08
$ 79,213
5
$
39.94
$ 83,071
6
$
42.00
$ 87,364
7
$
44.03
$ 91,583
8
$
46.30
$ 96,310
29
1
$
23.82
$ 49,553
2
$
25.01
$ 52,013
3
$
26.26
$ 54,617
4
$
27.57
$ 57,342
5
$
28.95
$ 60,212
6
$
30.40
$ 63,226
7
$
31.92
$ 66,385
8
$
33.52
$ 69,713
14
1
$
23.24
$ 48,333
2
$
24.39
$ 50,723
3
$
25.61
$ 53,268
4
$
26.89
$ 55,923
5
$
28.24
$ 58,734
6
$
29.64
$ 61,655
7
$
31.13
$ 64,753
8
$
32.68
$ 67,984
47
1
$
37.01
$ 76,971
2
$
38.86
$ 80,829
3
$
40.78
$ 84,832
4
$
42.86
$ 89,148
5
$
44.97
$ 93,536
June 14, 2022
22-30
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
6
$
47.22
$ 98,214
7
$
49.58
$ 103,134
8
$
52.06
$ 108,294
01/01/2022
CODE ENFORCEMENT SUPERVISOR
PROFESSIONAL TECHNICAL
99A
1
$
42.91
$ 89,244
2
$
45.04
$ 93,681
3
$
47.29
$ 98,359
4
$
49.63
$ 103,230
5
$
52.12
$ 108,415
6
$
54.74
$ 113,864
7
$
57.47
$ 119,531
8
$
60.37
$ 125,560
01/15/2022
COMMUNITY DEV DIRECTOR
KEY&MGT, EXECUTIVE
15H
0
$
80.01
$ 166,424
1
$
100.01
$ 208,018
2
$
120.01
$ 249,612
01/15/2022
COMMUNITY DEV DIRECTOR, DEPUTY
KEY&MGT, ADMIN MGT
17
1
$
74.97
$ 155,928
2
$
78.68
$ 163,648
3
$
82.62
$ 171,854
4
$
86.76
$ 180,451
5
$
91.11
$ 189,510
01/15/2022
CONCRETE FINISHER
EMPLOYEES LEAGUE
75A
1
$
27.94
$ 58,123
2
$
29.35
$ 61,057
3
$
30.78
$ 64,014
4
$
32.34
$ 67,260
5
$
33.96
$ 70,627
6
$
35.68
$ 74,211
7
$
37.45
$ 77,890
8
$
39.29
$ 81,713
01/01/2022
CONSTRUCTION INSPECTION SUPERVISOR
PROFESSIONAL TECHNICAL
90A
1
$
42.91
$ 89,244
2
$
45.04
$ 93,681
3
$
47.29
$ 98,359
4
$
49.63
$ 103,230
5
$
52.12
$ 108,415
6
$
54.74
$ 113,864
7
$
57.47
$ 119,531
8
$
60.37
$ 125,560
01/15/2022
CRIME ANALYST, SENIOR P/T
PART-TIME EMPLOYEES
03A
1
$
32.66
$ 67,940
2
$
34.30
$ 71,348
3
$
36.03
$ 74,934
4
$
37.82
$ 78,673
5
$
39.71
$ 82,590
6
$
41.70
$ 86,728
7
$
43.78
$ 91,066
8
$
45.97
$ 95,625
01/15/2022
CRIME PREVENTION SPECIALIST P/T
PART-TIME EMPLOYEES
12
1
$
30.75
$ 63,957
2
$
32.28
$ 67,143
3
$
33.90
$ 70,507
4
$
35.59
$ 74,026
5
$
37.38
$ 77,744
6
$
39.25
$ 81,639
7
$
41.21
$ 85,711
Proposed Citywide Salary Schedule
Page 7 of 39
June 14, 2022
22-31
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
8
$
43.27
$ 90,004
01/15/2022
CUSTODY OFFICER P/T
PART-TIME EMPLOYEES
02
1
$
28.15
$ 58,557
2
$
29.56
$ 61,478
3
$
31.04
$ 64,554
4
$
32.60
$ 67,807
5
$
34.23
$ 71,193
6
$
35.93
$ 74,734
7
$
37.74
$ 78,496
8
$
39.62
$ 82,413
01/15/2022
ELECTRICAL & INSTRUMENT SPECIALIST
EMPLOYEES LEAGUE
25C
1
$
31.16
$ 64,808
2
$
32.73
$ 68,078
3
$
34.35
$ 71,445
4
$
36.05
$ 74,980
5
$
37.89
$ 78,803
6
$
39.78
$ 82,747
7
$
41.79
$ 86,932
8
$
43.88
$ 91,260
01/01/2022
EMP PLANS EXAMINER
PROFESSIONAL TECHNICAL
90B
1
$
45.20
$ 94,019
2
$
47.45
$ 98,697
3
$
49.85
$ 103,689
4
$
52.31
$ 108,801
5
$
54.93
$ 114,250
6
$
57.68
$ 119,965
7
$
60.57
$ 125,993
8
$
63.56
$ 132,215
01/15/2022
EMS DIVISION CHIEF
KEY&MGT, DIVISION MGMT
02D
1
$
65.58
$ 136,398
2
$
68.85
$ 143,217
3
$
72.28
$ 150,352
4
$
75.91
$ 157,901
5
$
79.71
$ 165,791
01/01/2022
ENGINEER, ASSOCIATE
PROFESSIONAL TECHNICAL
85
1
$
43.02
$ 89,486
2
$
45.20
$ 94,019
3
$
47.45
$ 98,697
4
$
49.85
$ 103,689
5
$
52.31
$ 108,801
6
$
54.93
$ 114,250
7
$
57.68
$ 119,965
8
$
60.57
$ 125,993
01/15/2022
ENGINEER, ASSOCIATE P/T
PART-TIME EMPLOYEES
85B
1
$
42.26
$ 87,902
2
$
44.41
$ 92,372
3
$
46.61
$ 96,953
4
$
48.97
$ 101,866
5
$
51.39
$ 106,890
6
$
53.96
$ 112,245
7
$
56.87
$ 118,287
8
$
59.51
$ 123,775
01/01/2022
ENGINEER, JUNIOR
PROFESSIONAL TECHNICAL
54
1
$
38.92
$ 80,949
2
$
40.84
$ 84,952
3
$
42.95
$ 89,341
4
$
45.04
$ 93,681
Proposed Citywide
Salary Schedule
Page 8 of 39
June 14, 2022
22-32
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
5
$
47.32
$ 98,431
6
$
49.64
$ 103,254
7
$
52.18
$ 108,535
8
$
54.80
$ 113,985
01/15/2022
ENGINEER, JUNIOR P/T
PART-TIME EMPLOYEES
54A
1
$
38.02
$ 79,072
2
$
39.91
$ 83,011
3
$
41.91
$ 87,171
4
$
44.01
$ 91,531
5
$
46.21
$ 96,112
6
$
48.52
$ 100,915
7
$
50.94
$ 105,960
8
$
53.49
$ 111,249
01/01/2022
ENGINEERING TECHNICIAN
PROFESSIONAL TECHNICAL
15
1
$
29.81
$ 61,996
2
$
31.29
$ 65,082
3
$
32.89
$ 68,410
4
$
34.52
$ 71,810
5
$
36.26
$ 75,427
6
$
38.07
$ 79,189
7
$
39.94
$ 83,071
8
$
42.00
$ 87,364
01/01/2022
ENGINEERING TECHNICIAN, SENIOR
PROFESSIONAL TECHNICAL
35D
1
$
32.88
$ 68,386
2
$
34.52
$ 71,810
3
$
36.25
$ 75,404
4
$
38.08
$ 79,213
5
$
39.94
$ 83,071
6
$
42.00
$ 87,364
7
$
44.03
$ 91,583
8
$
46.30
$ 96,310
01/15/2022
EQUIPMENT MECHANIC I
EMPLOYEES LEAGUE
45
1
$
24.44
$ 50,837
2
$
25.65
$ 53,361
3
$
26.90
$ 55,959
4
$
28.26
$ 58,772
5
$
29.68
$ 61,730
6
$
31.16
$ 64,808
7
$
32.73
$ 68,078
8
$
34.35
$ 71,445
01/15/2022
EQUIPMENT MECHANIC II
EMPLOYEES LEAGUE
80
1
$
28.26
$ 58,772
2
$
29.68
$ 61,730
3
$
31.16
$ 64,808
4
$
32.73
$ 68,078
5
$
34.35
$ 71,445
6
$
36.05
$ 74,980
7
$
37.89
$ 78,803
8
$
39.78
$ 82,747
01/15/2022
EQUIPMENT MECHANIC, SENIOR
EMPLOYEES LEAGUE
25F
1
$
31.16
$ 64,808
2
$
32.73
$ 68,078
3
$
34.35
$ 71,445
4
$
36.05
$ 74,980
5
$
37.89
$ 78,803
6
$
39.78
$ 82,747
Proposed Citywide Salary Schedule
Page 9 of 39
June 14, 2022
22-33
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
7
$
41.79
$ 86,932
8
$
43.88
$ 91,260
01/15/2022
EQUIPMENT OPERATOR I
EMPLOYEES LEAGUE
40
1
$
25.32
$ 52,664
2
$
26.58
$ 55,285
3
$
27.94
$ 58,123
4
$
29.35
$ 61,057
5
$
30.78
$ 64,014
6
$
32.34
$ 67,260
7
$
33.97
$ 70,652
8
$
35.68
$ 74,211
01/15/2022
EQUIPMENT OPERATOR II
EMPLOYEES LEAGUE
65A
1
$
26.64
$ 55,405
2
$
27.97
$ 58,171
3
$
29.37
$ 61,080
4
$
30.83
$ 64,135
5
$
32.36
$ 67,309
6
$
34.00
$ 70,724
7
$
35.70
$ 74,259
8
$
37.47
$ 77,938
01/15/2022
FACILITIES MAINTENANCE TECHNICIAN
EMPLOYEES LEAGUE
75
1
$
27.94
$ 58,123
2
$
29.35
$ 61,057
3
$
30.78
$ 64,014
4
$
32.34
$ 67,260
5
$
33.96
$ 70,627
6
$
35.68
$ 74,211
7
$
37.45
$ 77,890
8
$
39.29
$ 81,713
01/15/2022
FACILITIES MAINTENANCE WORKER II
EMPLOYEES LEAGUE
25A
1
$
23.00
$ 47,831
2
$
24.14
$ 50,211
3
$
25.32
$ 52,664
4
$
26.58
$ 55,285
5
$
27.94
$ 58,123
6
$
29.35
$ 61,057
7
$
30.78
$ 64,014
8
$
32.34
$ 67,260
01/15/2022
FACILITIES MAINTENANCE WORKER II P/T
PART-TIME EMPLOYEES
50A
1
$
22.27
$ 46,319
2
$
23.40
$ 48,664
3
$
24.55
$ 51,055
4
$
25.80
$ 53,666
5
$
27.07
$ 56,300
6
$
28.42
$ 59,110
7
$
29.85
$ 62,098
8
$
31.32
$ 65,152
01/15/2022
FINANCE DIRECTOR, DEPUTY
KEY&MGT, ADMIN MGT
17C
1
$
74.97
$ 155,928
2
$
78.68
$ 163,648
3
$
82.62
$ 171,854
4
$
86.76
$ 180,451
5
$
91.11
$ 189,510
01/15/2022
FINANCE DIRECTOR/TREASURER
KEY&MGT, EXECUTIVE
15C
0
$
80.01
$ 166,424
1
$
100.01
$ 208,018
2
$
120.01
$ 249,612
Proposed Citywide Salary Schedule
Page 10 of 39
June 14, 2022
22-34
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
01/15/2022
FINANCE MANAGER
KEY&MGT, DIVISION MGMT
16
1
$
66.25
$ 137,810
2
$
69.58
$ 144,726
3
$
73.07
$ 151,983
4
$
76.71
$ 159,557
5
$
80.53
$ 167,496
06/19/2021
FIRE BATTALION CHIEF, 112 HOURS
FIRE MANAGEMENT
01
1
$
50.27
$ 146,382
2
$
52.78
$ 153,690
3
$
55.41
$ 161,353
4
$
58.19
$ 169,442
5
$
61.10
$ 177,921
06/19/2021
FIRE BATTALION CHIEF, 80 HOURS
FIRE MANAGEMENT
05
1
$
70.38
$ 146,382
2
$
73.89
$ 153,690
3
$
77.57
$ 161,353
4
$
81.46
$ 169,442
5
$
85.54
$ 177,921
06/19/2021
FIRE BATTALION CHIEF, STAFF
FIRE MANAGEMENT
04
1
$
75.66
$ 157,369
2
$
79.45
$ 165,251
3
$
83.42
$ 173,512
4
$
87.59
$ 182,178
5
$
91.97
$ 191,301
01/15/2022
FIRE CAPTAIN 112 HRS
FIREFIGHTERS, SAFETY
35
1
$
32.26
$ 93,947
2
$
33.88
$ 98,655
3
$
35.58
$ 103,608
4
$
37.35
$ 108,773
5
$
39.22
$ 114,218
6
$
41.18
$ 119,910
7
$
43.24
$ 125,918
8
$
45.40
$ 132,207
01/15/2022
FIRE CAPTAIN 80 HRS
FIREFIGHTERS, SAFETY
65
1
$
45.17
$ 93,953
2
$
47.43
$ 98,659
3
$
49.81
$ 103,612
4
$
52.29
$ 108,768
5
$
54.91
$ 114,216
6
$
57.62
$ 119,845
7
$
60.54
$ 125,924
8
$
63.56
$ 132,206
01/15/2022
FIRE CAPTAIN, STAFF EMS/TRAINING
FIREFIGHTERS, SAFETY
95
1
$
48.56
$ 101,000
2
$
50.99
$ 106,050
3
$
53.53
$ 111,352
4
$
56.21
$ 116,920
5
$
59.02
$ 122,766
6
$
61.97
$ 128,904
7
$
65.07
$ 135,349
8
$
68.33
$ 142,117
01/15/2022
FIRE CHIEF
KEY&MGT, EXECUTIVE SFTY
01C
0
$
81.31
$ 169,131
1
$
101.63
$ 211,396
2
$
121.95
$ 253,661
01/15/2022
FIRE CHIEF, ASSISTANT
KEY&MGT, ADMIN MGT SFTY
O1B
1
$
89.39
$ 185,924
2
$
93.86
$ 195,219
3
$
98.55
$ 204,984
Proposed Citywide Salary Schedule
Page 11 of 39
June 14, 2022
22-35
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
4
$
103.47
$ 215,219
5
$
108.63
$ 225,947
01/15/2022
FIRE ENGINEER 112 HRS
FIREFIGHTERS, SAFETY
15
1
$
27.48
$ 80,034
2
$
28.86
$ 84,039
3
$
30.30
$ 88,220
4
$
31.82
$ 92,647
5
$
33.41
$ 97,284
6
$
35.07
$ 102,132
7
$
36.82
$ 107,227
8
$
38.67
$ 112,602
01/15/2022
FIRE ENGINEER 80 HRS
FIREFIGHTERS, SAFETY
15A
1
$
38.48
$ 80,035
2
$
40.40
$ 84,039
3
$
42.41
$ 88,220
4
$
44.54
$ 92,647
5
$
46.77
$ 97,284
6
$
49.32
$ 102,583
7
$
51.55
$ 107,227
8
$
54.14
$ 112,602
01/15/2022
FIRE MARSHAL
KEY&MGT, DIVISION MGMT
02E
1
$
65.58
$ 136,398
2
$
68.85
$ 143,217
3
$
72.28
$ 150,352
4
$
75.91
$ 157,901
5
$
79.71
$ 165,791
01/15/2022
FIRE SERVICES COORDINATOR
FIREFIGHTERS, NONSAFETY
01
1
$
32.04
$ 66,653
2
$
33.64
$ 69,965
3
$
35.33
$ 73,479
4
$
37.10
$ 77,168
5
$
38.96
$ 81,033
6
$
40.91
$ 85,098
7
$
42.96
$ 89,364
8
$
45.11
$ 93,831
01/15/2022
FIREFIGHTER 112 HRS
FIREFIGHTERS, SAFETY
05
0
$
23.29
$ 67,824
1
$
24.46
$ 71,215
2
$
25.67
$ 74,764
3
$
26.97
$ 78,523
4
$
28.30
$ 82,423
5
$
29.73
$ 86,569
6
$
31.21
$ 90,890
7
$
32.77
$ 95,422
8
$
34.41
$ 100,200
01/15/2022
FIREFIGHTER 80 HRS
FIREFIGHTERS, SAFETY
06
0
$
32.61
$ 67,829
1
$
34.24
$ 71,221
2
$
35.94
$ 74,759
3
$
37.75
$ 78,523
4
$
39.62
$ 82,413
5
$
41.62
$ 86,579
6
$
43.70
$ 90,895
7
$
45.87
$ 95,412
8
$
48.18
$ 100,205
01/15/2022
FIREFIGHTER PARAMEDIC 1122
FIREFIGHTERS, SAFETY
25
1
$
29.95
$ 87,201
Proposed Citywide
Salary Schedule
Page 12 of 39
June 14, 2022
22-36
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
2
$
31.44
$ 91,558
3
$
33.01
$ 96,125
4
$
34.66
$ 100,938
5
$
36.39
$ 105,962
6
$
38.21
$ 111,267
7
$
40.13
$ 116,853
8
$
42.13
$ 122,685
01/15/2022
FIREFIGHTER PARAMEDIC 1123
FIREFIGHTERS, SAFETY
27
1
$
28.67
$ 83,500
2
$
30.11
$ 87,675
3
$
31.61
$ 92,059
4
$
33.19
$ 96,662
5
$
34.85
$ 101,495
6
$
36.60
$ 106,570
7
$
38.43
$ 111,898
8
$
40.35
$ 117,493
01/15/2022
FIREFIGHTER PARAMEDIC 80'
FIREFIGHTERS, SAFETY
26
1
$
41.92
$ 87,201
2
$
44.02
$ 91,558
3
$
46.21
$ 96,125
4
$
48.53
$ 100,938
5
$
50.94
$ 105,962
6
$
53.49
$ 111,267
7
$
56.18
$ 116,853
8
$
58.98
$ 122,685
01/15/2022
FIREFIGHTER PARAMEDIC 803
FIREFIGHTERS, SAFETY
28
1
$
40.15
$ 83,506
2
$
42.15
$ 87,682
3
$
44.26
$ 92,065
4
$
46.48
$ 96,669
5
$
48.80
$ 101,502
6
$
51.24
$ 106,577
7
$
53.80
$ 111,906
8
$
56.49
$ 117,502
01/01/2022
FISCAL CLERK
CITY EMPLOYEES
31
1
$
22.17
$ 46,105
2
$
23.31
$ 48,492
3
$
24.47
$ 50,904
4
$
25.67
$ 53,387
5
$
26.95
$ 56,064
6
$
28.32
$ 58,910
7
$
29.74
$ 61,851
8
$
31.22
$ 64,938
01/15/2022
FISCAL CLERK P/T
PART-TIME EMPLOYEES
30
1
$
20.86
$ 43,398
2
$
21.91
$ 45,566
3
$
23.03
$ 47,912
4
$
24.16
$ 50,258
5
$
25.38
$ 52,781
6
$
26.64
$ 55,415
7
$
27.95
$ 58,137
8
$
29.35
$ 61,058
01/01/2022
FISCAL CLERK, SENIOR
CITY EMPLOYEES
65
1
$
25.81
$ 53,677
2
$
27.05
$ 56,257
3
$
28.44
$ 59,151
Proposed Citywide
Salary Schedule
Page 13 of 39
June 14, 2022
22-37
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
4
$
29.88
$ 62,141
5
$
31.35
$ 65,203
6
$
32.91
$ 68,459
7
$
34.57
$ 71,907
8
$
36.31
$ 75,524
01/15/2022
FISCAL CLERK, SENIOR P/T
PART-TIME EMPLOYEES
65
1
$
24.29
$ 50,523
2
$
25.47
$ 52,980
3
$
26.74
$ 55,613
4
$
28.09
$ 58,424
5
$
29.48
$ 61,323
6
$
30.98
$ 64,444
7
$
32.55
$ 67,696
8
$
34.14
$ 71,016
01/01/2022
FISCAL SPECIALIST
CITY EMPLOYEES
85
1
$
29.90
$ 62,189
2
$
31.42
$ 65,348
3
$
32.97
$ 68,579
4
$
34.62
$ 72,003
5
$
36.38
$ 75,669
6
$
38.15
$ 79,358
7
$
40.09
$ 83,385
8
$
42.08
$ 87,533
01/15/2022
FISCAL SPECIALIST (KEY & MGMT)
KEY&MGT, CONFIDENTIAL
01A
1
$
30.19
$ 62,804
2
$
31.73
$ 65,995
3
$
33.30
$ 69,258
4
$
34.96
$ 72,716
5
$
36.74
$ 76,418
6
$
38.53
$ 80,143
7
$
40.49
$ 84,211
8
$
42.50
$ 88,399
01/15/2022
FISCAL SPECIALIST P/T
PART-TIME EMPLOYEES
85
1
$
28.14
$ 58,535
2
$
29.55
$ 61,456
3
$
31.03
$ 64,532
4
$
32.57
$ 67,741
5
$
34.19
$ 71,105
6
$
35.91
$ 74,690
7
$
37.70
$ 78,408
8
$
39.57
$ 82,303
01/15/2022
GIS TECHNICAL AIDE P/T
PART-TIME EMPLOYEES
75A
1
$
15.31
$ 31,845
2
$
16.09
$ 33,461
3
$
16.89
$ 35,121
4
$
17.70
$ 36,825
5
$
18.58
$ 38,640
6
$
19.53
$ 40,631
7
$
20.51
$ 42,667
8
$
21.54
$ 44,801
01/15/2022
GROUNDSWORKER II
EMPLOYEES LEAGUE
50
1
$
24.58
$ 51,125
2
$
25.83
$ 53,722
3
$
27.13
$ 56,440
4
$
28.48
$ 59,229
Proposed Citywide Salary Schedule
Page 14 of 39
June 14, 2022
22-38
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
5
$
29.90
$ 62,187
6
$
31.38
$ 65,265
7
$
33.00
$ 68,631
8
$
34.63
$ 72,022
01/01/2022
HARBOR RESOURCES TECHNICIAN
PROFESSIONAL TECHNICAL
09
1
$
25.81
$ 53,677
2
$
27.05
$ 56,257
3
$
28.44
$ 59,151
4
$
29.88
$ 62,141
5
$
31.35
$ 65,203
6
$
32.91
$ 68,459
7
$
34.57
$ 71,907
8
$
36.31
$ 75,524
01/15/2022
HARBOR SERVICES WORKER P/T
PART-TIME EMPLOYEES
89A
1
$
21.60
$ 44,925
2
$
22.68
$ 47,182
3
$
23.81
$ 49,528
4
$
25.01
$ 52,029
5
$
26.25
$ 54,596
01/15/2022
HARBOR SERVICES WORKER, LEAD P/T
PART-TIME EMPLOYEES
89B
1
$
23.45
$ 48,775
2
$
24.63
$ 51,232
3
$
25.85
$ 53,777
4
$
27.16
$ 56,499
5
$
28.51
$ 59,309
6
$
29.93
$ 62,253
7
$
31.43
$ 65,373
8
$
33.00
$ 68,649
01/15/2022
HARBORMASTER
KEY&MGT, EXECUTIVE
77
0
$
51.00
$ 106,089
1
$
63.75
$ 132,600
2
$
76.50
$ 159,111
01/15/2022
HUMAN RESOURCES ANALYST
KEY&MGT, CONFIDENTIAL
16A
1
$
40.86
$ 84,990
2
$
42.86
$ 89,154
3
$
45.03
$ 93,659
4
$
47.31
$ 98,408
5
$
49.64
$ 103,254
6
$
52.12
$ 108,416
7
$
54.75
$ 113,872
8
$
57.49
$ 119,570
01/15/2022
HUMAN RESOURCES ANALYST P/T
PART-TIME EMPLOYEES
16
1
$
38.05
$ 79,138
2
$
39.96
$ 83,121
3
$
41.96
$ 87,282
4
$
44.06
$ 91,642
5
$
46.24
$ 96,179
6
$
48.58
$ 101,047
7
$
51.00
$ 106,071
8
$
53.55
$ 111,382
01/15/2022
HUMAN RESOURCES ANALYST, SENIOR
KEY&MGT, CONFIDENTIAL
20A
1
$
45.09
$ 93,781
2
$
47.38
$ 98,554
3
$
49.74
$ 103,449
4
$
52.23
$ 108,636
5
$
54.80
$ 113,993
6
$
57.56
$ 119,716
Proposed Citywide Salary Schedule
Page 15 of 39
June 14, 2022
22-39
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
7
$
60.40
$ 125,634
8
$
63.44
$ 131,965
01/15/2022
HUMAN RESOURCES ANALYST, SENIOR P/T
PART-TIME EMPLOYEES
20A
1
$
44.40
$ 92,351
2
$
46.66
$ 97,052
3
$
48.98
$ 101,871
4
$
51.43
$ 106,979
5
$
53.97
$ 112,255
6
$
56.68
$ 117,891
7
$
59.48
$ 123,718
8
$
62.48
$ 129,953
01/15/2022
HUMAN RESOURCES DIRECTOR
KEY&MGT, EXECUTIVE
11B
0
$
75.69
$ 157,438
1
$
94.61
$ 196,791
2
$
113.53
$ 236,145
01/15/2022
HUMAN RESOURCES MANAGER
KEY&MGT, DIVISION MGMT
02C
1
$
65.58
$ 136,398
2
$
68.85
$ 143,217
3
$
72.28
$ 150,352
4
$
75.91
$ 157,901
5
$
79.71
$ 165,791
01/15/2022
HUMAN RESOURCES SPECIALIST I
KEY&MGT, CONFIDENTIAL
03
1
$
30.94
$ 64,363
2
$
32.49
$ 67,578
3
$
34.11
$ 70,938
4
$
35.79
$ 74,445
5
$
37.59
$ 78,195
6
$
39.46
$ 82,067
7
$
41.47
$ 86,256
8
$
43.48
$ 90,445
01/15/2022
HUMAN RESOURCES SPECIALIST I P/T
PART-TIME EMPLOYEES
03B
1
$
29.32
$ 60,991
2
$
30.79
$ 64,045
3
$
32.32
$ 67,232
4
$
33.92
$ 70,552
5
$
35.62
$ 74,092
6
$
37.39
$ 77,766
7
$
39.29
$ 81,727
8
$
41.21
$ 85,711
01/15/2022
HUMAN RESOURCES SPECIALIST II
KEY&MGT, CONFIDENTIAL
08
1
$
34.21
$ 71,157
2
$
35.92
$ 74,713
3
$
37.69
$ 78,390
4
$
39.58
$ 82,335
5
$
41.61
$ 86,548
6
$
43.61
$ 90,712
7
$
45.87
$ 95,412
8
$
48.14
$ 100,137
01/15/2022
HUMAN RESOURCES SPECIALIST II P/T
PART-TIME EMPLOYEES
08
1
$
31.87
$ 66,280
2
$
33.46
$ 69,600
3
$
35.11
$ 73,030
4
$
36.88
$ 76,704
5
$
38.75
$ 80,599
6
$
40.63
$ 84,516
7
$
42.70
$ 88,809
8
$
44.85
$ 93,279
Proposed Citywide Salary Schedule
Page 16 of 39
June 14, 2022
22-40
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
01/01/2022
IT ANALYST
PROFESSIONAL TECHNICAL
61
1
$
38.61
$ 80,298
2
$
40.54
$ 84,326
3
$
42.55
$ 88,497
4
$
44.67
$ 92,910
5
$
46.92
$ 97,588
6
$
49.26
$ 102,459
7
$
51.73
$ 107,595
8
$
54.30
$ 112,948
01/01/2022
IT ANALYST, SENIOR
PROFESSIONAL TECHNICAL
41
1
$
42.87
$ 89,172
2
$
44.99
$ 93,585
3
$
47.22
$ 98,214
4
$
49.58
$ 103,134
5
$
52.08
$ 108,318
6
$
54.71
$ 113,792
7
$
57.42
$ 119,434
8
$
60.30
$ 125,415
01/15/2022
IT MANAGER
KEY&MGT, ADMIN MGT
15D
1
$
71.34
$ 148,379
2
$
74.91
$ 155,806
3
$
78.64
$ 163,575
4
$
82.58
$ 171,757
5
$
86.71
$ 180,353
01/01/2022
IT SPECIALIST III
PROFESSIONAL TECHNICAL
45
1
$
35.81
$ 74,487
2
$
37.60
$ 78,200
3
$
39.47
$ 82,106
4
$
41.45
$ 86,206
5
$
43.54
$ 90,570
6
$
45.68
$ 95,008
7
$
47.96
$ 99,758
8
$
50.38
$ 104,797
01/15/2022
IT SUPERVISOR
KEY&MGT, CONFIDENTIAL
97
1
$
62.29
$ 129,555
2
$
65.38
$ 135,984
3
$
68.65
$ 142,793
4
$
72.11
$ 149,981
5
$
75.70
$ 157,454
01/01/2022
ITTECHNICIAN
PROFESSIONAL TECHNICAL
28
1
$
25.60
$ 53,240
2
$
26.87
$ 55,883
3
$
28.21
$ 58,681
4
$
29.62
$ 61,608
5
$
31.10
$ 64,692
6
$
32.66
$ 67,930
7
$
34.29
$ 71,324
8
$
36.01
$ 74,899
01/15/2022
IT TECHNICIAN P/T
PART-TIME EMPLOYEES
54
1
$
22.42
$ 46,629
2
$
23.57
$ 49,019
3
$
24.72
$ 51,409
4
$
25.96
$ 53,998
5
$
27.25
$ 56,676
6
$
28.64
$ 59,575
7
$
30.06
$ 62,518
8
$
31.57
$ 65,661
Proposed Citywide Salary Schedule
Page 17 of 39
June 14, 2022
22-41
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
01/01/2022
IT TECHNICIAN, SENIOR P/T
PROFESSIONAL TECHNICAL
16
1
$
30.72
$ 63,901
2
$
32.25
$ 67,084
3
$
33.87
$ 70,459
4
$
35.57
$ 73,981
5
$
37.34
$ 77,670
6
$
39.21
$ 81,552
7
$
41.19
$ 85,676
8
$
43.22
$ 89,896
01/15/2022
INTERN P/T
PART-TIME EMPLOYEES
05
1
$
18.52
$ 38,529
01/01/2022
INVENTORY ANALYST
CITY EMPLOYEES
90
1
$
26.30
$ 54,714
2
$
27.60
$ 57,415
3
$
28.97
$ 60,260
4
$
30.43
$ 63,298
5
$
31.97
$ 66,505
6
$
33.57
$ 69,833
7
$
35.27
$ 73,354
8
$
37.04
$ 77,043
01/01/2022
LIBRARIAN I
CITY EMPLOYEES
20
1
$
30.25
$ 62,912
2
$
31.75
$ 66,047
3
$
33.32
$ 69,302
4
$
35.02
$ 72,847
5
$
36.75
$ 76,441
6
$
38.64
$ 80,370
7
$
40.54
$ 84,326
8
$
42.55
$ 88,497
01/15/2022
LIBRARIAN I P/T
PART-TIME EMPLOYEES
21
1
$
28.46
$ 59,199
2
$
29.88
$ 62,142
3
$
31.34
$ 65,196
4
$
32.95
$ 68,538
5
$
34.57
$ 71,901
6
$
36.34
$ 75,597
7
$
38.14
$ 79,337
8
$
40.03
$ 83,255
01/01/2022
LIBRARIAN II
CITY EMPLOYEES
30A
1
$
33.24
$ 69,134
2
$
34.93
$ 72,654
3
$
36.68
$ 76,296
4
$
38.50
$ 80,081
5
$
40.44
$ 84,108
6
$
42.44
$ 88,280
7
$
44.56
$ 92,693
8
$
46.81
$ 97,371
01/01/2022
LIBRARIAN III
CITY EMPLOYEES
35A
1
$
36.59
$ 76,103
2
$
38.38
$ 79,840
3
$
40.31
$ 83,843
4
$
42.36
$ 88,111
5
$
44.49
$ 92,548
6
$
46.69
$ 97,105
7
$
49.05
$ 102,025
8
$
51.47
$ 107,064
01/01/2022
LIBRARY ASSISTANT
CITY EMPLOYEES
70
1
$
25.72
$ 53,508
Proposed Citywide Salary Schedule
Page 18 of 39
June 14, 2022
22-42
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
2
$
26.98
$ 56,113
3
$
28.35
$ 58,958
4
$
29.76
$ 61,900
5
$
31.24
$ 64,986
6
$
32.83
$ 68,290
7
$
34.45
$ 71,666
8
$
36.18
$ 75,259
01/15/2022
LIBRARY ASSISTANT P/T
PART-TIME EMPLOYEES
70
1
$
24.23
$ 50,391
2
$
25.42
$ 52,869
3
$
26.67
$ 55,481
4
$
28.00
$ 58,247
5
$
29.41
$ 61,168
6
$
30.88
$ 64,222
7
$
32.43
$ 67,453
8
$
34.05
$ 70,817
01/01/2022
LIBRARY CLERK I
CITY EMPLOYEES
05
1
$
20.04
$ 41,692
2
$
21.03
$ 43,742
3
$
22.08
$ 45,936
4
$
23.19
$ 48,227
5
$
24.36
$ 50,663
6
$
25.56
$ 53,171
7
$
26.85
$ 55,847
8
$
28.18
$ 58,620
01/15/2022
LIBRARY CLERK I P/T
PART-TIME EMPLOYEES
05A
1
$
18.85
$ 39,215
2
$
19.80
$ 41,185
3
$
20.79
$ 43,243
4
$
21.84
$ 45,434
5
$
22.92
$ 47,669
6
$
24.05
$ 50,015
7
$
25.25
$ 52,515
8
$
26.51
$ 55,149
01/01/2022
LIBRARY CLERK II
CITY EMPLOYEES
30
1
$
22.17
$ 46,105
2
$
23.31
$ 48,492
3
$
24.47
$ 50,904
4
$
25.67
$ 53,387
5
$
26.95
$ 56,064
6
$
28.32
$ 58,910
7
$
29.74
$ 61,851
8
$
31.22
$ 64,938
01/15/2022
LIBRARY CLERK II P/T
PART-TIME EMPLOYEES
20
1
$
19.90
$ 41,384
2
$
20.91
$ 43,486
3
$
21.94
$ 45,633
4
$
23.08
$ 48,001
5
$
24.23
$ 50,391
6
$
25.42
$ 52,869
7
$
26.67
$ 55,481
8
$
28.04
$ 58,313
01/01/2022
LIBRARY CLERK, SENIOR
CITY EMPLOYEES
71
1
$
25.72
$ 53,508
2
$
26.98
$ 56,113
3
$
28.35
$ 58,958
Proposed Citywide
Salary Schedule
Page 19 of 39
June 14, 2022
22-43
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
4
$
29.76
$ 61,900
5
$
31.24
$ 64,986
6
$
32.83
$ 68,290
7
$
34.45
$ 71,666
8
$
36.18
$ 75,259
01/15/2022
LIBRARY PAGE P/T
PART-TIME EMPLOYEES
30A
1
$
15.45
$ 32,133
2
$
16.23
$ 33,749
3
$
17.03
$ 35,431
4
$
17.89
$ 37,202
5
$
18.78
$ 39,062
6
$
19.71
$ 41,007
01/15/2022
LIBRARY SERVICES DIRECTOR
KEY&MGT, EXECUTIVE
11C
0
$
75.69
$ 157,438
1
$
94.61
$ 196,791
2
$
113.53
$ 236,145
01/15/2022
LIBRARY SERVICES MANAGER
KEY&MGT, DIVISION MGMT
10D
1
$
60.01
$ 124,830
2
$
63.00
$ 131,040
3
$
66.17
$ 137,640
4
$
69.49
$ 144,531
5
$
72.96
$ 151,764
01/15/2022
LIFE SAFETY SPECIALIST I
FIREFIGHTERS, NONSAFETY
02
1
$
36.65
$ 76,239
2
$
38.49
$ 80,054
3
$
40.41
$ 84,044
4
$
42.43
$ 88,260
5
$
44.56
$ 92,677
6
$
46.78
$ 97,295
7
$
49.12
$ 102,163
8
$
51.58
$ 107,282
01/15/2022
LIFE SAFETY SPECIALIST I P/T
PART-TIME EMPLOYEES
72
1
$
35.39
$ 73,620
2
$
37.17
$ 77,303
3
$
39.02
$ 81,156
4
$
40.97
$ 85,227
5
$
43.03
$ 89,493
6
$
45.17
$ 93,951
7
$
47.43
$ 98,652
8
$
49.81
$ 103,596
01/15/2022
LIFE SAFETY SPECIALIST II
FIREFIGHTERS, NONSAFETY
47
1
$
40.33
$ 83,893
2
$
42.36
$ 88,109
3
$
44.47
$ 92,501
4
$
46.69
$ 97,119
5
$
49.03
$ 101,987
6
$
51.48
$ 107,081
7
$
54.05
$ 112,427
8
$
56.77
$ 118,073
01/15/2022
LIFE SAFETY SPECIALIST III
FIREFIGHTERS, NONSAFETY
75
1
$
44.35
$ 92,250
2
$
46.57
$ 96,868
3
$
48.90
$ 101,711
4
$
51.35
$ 106,805
5
$
53.92
$ 112,151
6
$
56.61
$ 117,747
7
$
59.44
$ 123,644
Proposed Citywide
Salary Schedule
Page 20 of 39
June 14, 2022
22-44
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
8
$
62.41
$ 129,818
01/15/2022
LIFE SAFETY SPECIALIST III P/T
PART-TIME EMPLOYEES
75B
1
$
42.51
$ 88,411
2
$
44.63
$ 92,837
3
$
46.87
$ 97,484
4
$
49.21
$ 102,353
5
$
51.68
$ 107,487
6
$
54.25
$ 112,842
7
$
56.96
$ 118,486
8
$
59.82
$ 124,417
01/15/2022
LIFEGUARD BATTALION CHIEF
LIFEGUARD MANAGEMENT
16
1
$
47.27
$ 98,315
2
$
49.61
$ 103,187
3
$
52.09
$ 108,350
4
$
54.68
$ 113,736
5
$
57.43
$ 119,458
6
$
60.27
$ 125,358
7
$
63.29
$ 131,638
8
$
66.45
$ 138,209
01/01/2022
LIFEGUARD CADET P/T, UNREPRESENTED
OCEAN LIFEGUARDS
02A
1
$
17.00
$ 35,360
01/15/2022
LIFEGUARD CAPTAIN
LIFEGUARD MANAGEMENT
11
1
$
37.53
$ 78,067
2
$
39.40
$ 81,956
3
$
41.38
$ 86,068
4
$
43.44
$ 90,359
5
$
45.63
$ 94,918
6
$
47.93
$ 99,701
7
$
50.33
$ 104,685
8
$
52.85
$ 109,937
01/15/2022
LIFEGUARD CAPTAIN, TRAINING
LIFEGUARD MANAGEMENT
03
1
$
40.34
$ 83,900
2
$
42.36
$ 88,102
3
$
44.47
$ 92,504
4
$
46.69
$ 97,108
5
$
49.03
$ 101,981
6
$
51.47
$ 107,054
7
$
54.07
$ 112,462
8
$
56.77
$ 118,072
06/20/2020
LIFEGUARD I P/T
OCEAN LIFEGUARDS
05B
1
$
18.50
$ 38,490
2
$
19.43
$ 40,420
3
$
20.41
$ 42,457
4
$
21.43
$ 44,579
06/20/2020
LIFEGUARD II P/T
OCEAN LIFEGUARDS
25
1
$
21.43
$ 44,579
2
$
22.50
$ 46,807
3
$
23.63
$ 49,141
4
$
24.81
$ 51,602
06/20/2020
LIFEGUARD III P/T
OCEAN LIFEGUARDS
35
1
$
21.43
$ 44,579
2
$
22.50
$ 46,807
3
$
23.63
$ 49,141
4
$
24.81
$ 51,602
01/15/2022
LIFEGUARD OFFICER P/T
LIFEGUARD MANAGEMENT
01
1
$
27.94
$ 58,109
2
$
29.33
$ 61,014
3
$
30.80
$ 64,054
4
$
32.34
$ 67,272
Proposed Citywide Salary Schedule
Page 21 of 39
June 14, 2022
22-45
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE POSITION TITLE
01/15/2022 LIFEGUARD OPERATIONS, ASSISTANT CHIEF
01/01/2022 LIFEGUARD TRAINEE P/T, UNREPRESENTED
01/15/2022 LITERACY COORDINATOR P/T
01/01/2022 MAIL PROCESSING CLERK, SENIOR
01/15/2022 MAINTENANCE AIDE P/T
01/15/2022 MAINTENANCE WORKER I
01/15/2022 MAINTENANCE WORKER II
01/15/2022 MANAGEMENT ANALYST
Proposed Citywide Salary Schedule
EE GROUP
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
5
$
33.95
$ 70,624
6
$
35.65
$ 74,156
7
$
37.44
$ 77,865
8
$
39.32
$ 81,777
KEY&MGT, ADMIN MGT SFTY
02
1
$
68.80
$ 143,103
2
$
72.24
$ 150,255
3
$
75.84
$ 157,743
4
$
79.64
$ 165,654
5
$
83.63
$ 173,946
OCEAN LIFEGUARDS
01
1
$
15.00
$ 31,200
PART-TIME EMPLOYEES
12A
1
$
28.80
$ 59,907
2
$
30.23
$ 62,872
3
$
31.76
$ 66,059
4
$
33.32
$ 69,312
5
$
35.04
$ 72,875
6
$
36.77
$ 76,483
7
$
38.61
$ 80,311
8
$
40.53
$ 84,294
CITY EMPLOYEES
07
1
$
23.28
$ 48,420
2
$
24.44
$ 50,831
3
$
25.67
$ 53,387
4
$
26.93
$ 56,016
5
$
28.30
$ 58,861
6
$
29.71
$ 61,803
7
$
31.21
$ 64,914
8
$
32.76
$ 68,145
PART-TIME EMPLOYEES
84
1
$
15.15
$ 31,514
2
$
15.90
$ 33,063
3
$
16.70
$ 34,745
4
$
17.54
$ 36,482
5
$
18.42
$ 38,306
EMPLOYEES LEAGUE
25H
1
$
23.00
$ 47,831
2
$
24.14
$ 50,211
3
$
25.32
$ 52,664
4
$
26.58
$ 55,285
5
$
27.94
$ 58,123
6
$
29.35
$ 61,057
7
$
30.78
$ 64,014
8
$
32.34
$ 67,260
EMPLOYEES LEAGUE
39
1
$
24.14
$ 50,211
2
$
25.32
$ 52,664
3
$
26.58
$ 55,285
4
$
27.94
$ 58,123
5
$
29.35
$ 61,057
6
$
30.78
$ 64,014
7
$
32.34
$ 67,260
8
$
33.97
$ 70,652
KEY&MGT, CONFIDENTIAL
12
1
$
37.02
$ 77,002
2
$
38.92
$ 80,947
3
$
40.84
$ 84,941
Page 22 of 39
June 14, 2022
22-46
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
4
$
42.84
$ 89,105
5
$
45.01
$ 93,611
6
$
47.28
$ 98,335
7
$
49.62
$ 103,205
8
$
52.10
$ 108,368
01/15/2022
MANAGEMENT ANALYST P/T
PART-TIME EMPLOYEES
12B
1
$
35.48
$ 73,804
2
$
37.29
$ 77,567
3
$
39.13
$ 81,396
4
$
41.06
$ 85,401
5
$
43.13
$ 89,717
6
$
45.30
$ 94,231
7
$
47.55
$ 98,901
8
$
49.93
$ 103,858
01/15/2022
MANAGEMENT ANALYST, SENIOR
KEY&MGT, CONFIDENTIAL
06
1
$
42.58
$ 88,560
2
$
44.71
$ 92,997
3
$
46.95
$ 97,647
4
$
49.30
$ 102,534
5
$
51.76
$ 107,658
6
$
54.35
$ 113,043
7
$
57.06
$ 118,689
8
$
59.93
$ 124,644
01/01/2022
MANAGEMENT ASSISTANT
PROFESSIONAL TECHNICAL
37
1
$
33.74
$ 70,171
2
$
35.41
$ 73,643
3
$
37.17
$ 77,308
4
$
39.05
$ 81,215
5
$
41.04
$ 85,362
6
$
43.03
$ 89,510
7
$
45.22
$ 94,067
8
$
47.49
$ 98,769
01/15/2022
MANAGEMENT FELLOW
KEY&MGT, CONFIDENTIAL
26
1
$
24.52
$ 51,000
01/15/2022
MARINE NATURALIST INTERPRETER P/T
PART-TIME EMPLOYEES
88
1
$
16.90
$ 35,143
2
$
17.72
$ 36,847
3
$
18.61
$ 38,706
01/01/2022
MARKETING SPECIALIST
CITY EMPLOYEES
02
1
$
30.64
$ 63,732
2
$
32.17
$ 66,915
3
$
33.76
$ 70,218
4
$
35.42
$ 73,667
5
$
37.24
$ 77,453
6
$
39.10
$ 81,335
7
$
41.04
$ 85,362
8
$
43.07
$ 89,582
01/15/2022
MARKETING SPECIALIST P/T
PART-TIME EMPLOYEES
02B
1
$
28.81
$ 59,929
2
$
30.25
$ 62,916
3
$
31.76
$ 66,059
4
$
33.37
$ 69,401
5
$
35.01
$ 72,831
6
$
36.75
$ 76,438
7
$
38.60
$ 80,289
8
$
40.54
$ 84,317
0611812022
MAYOR
CITY COUNCIL
02
1
-
$ 26,662
Proposed Citywide Salary Schedule
Page 23 of 39
June 14, 2022
22-47
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
01/15/2022
PARALEGAL
KEY&MGT, CONFIDENTIAL
30
1
$
33.19
$ 69,039
2
$
34.84
$ 72,473
3
$
36.61
$ 76,150
4
$
38.45
$ 79,973
5
$
40.36
$ 83,943
6
$
42.37
$ 88,131
7
$
44.48
$ 92,515
8
$
46.70
$ 97,142
01/15/2022
PARALEGAL P/T
PART-TIME EMPLOYEES
92
1
$
30.94
$ 64,355
2
$
32.48
$ 67,564
3
$
34.09
$ 70,906
4
$
35.80
$ 74,469
5
$
37.56
$ 78,120
6
$
39.49
$ 82,148
7
$
41.42
$ 86,153
8
$
43.55
$ 90,580
01/01/2022
PARK PATROL OFFICER
CITY EMPLOYEES
89
1
$
21.84
$ 45,430
2
$
22.94
$ 47,721
3
$
24.07
$ 50,060
4
$
25.28
$ 52,592
5
$
26.54
$ 55,196
6
$
27.87
$ 57,969
7
$
29.27
$ 60,887
8
$
30.73
$ 63,925
01/15/2022
PARK PATROL OFFICER P/T
PART-TIME EMPLOYEES
89
1
$
21.60
$ 44,925
2
$
22.68
$ 47,182
3
$
23.81
$ 49,528
4
$
25.01
$ 52,029
5
$
26.25
$ 54,596
01/01/2022
PARK PATROL OFFICER, LEAD
CITY EMPLOYEES
22
1
$
24.51
$ 50,976
2
$
25.74
$ 53,532
3
$
27.01
$ 56,184
4
$
28.38
$ 59,030
5
$
29.79
$ 61,972
6
$
31.28
$ 65,059
7
$
32.84
$ 68,314
8
$
34.49
$ 71,738
0611812022
PAYROLL COORDINATOR
KEY&MGT, CONFIDENTIAL
01A
1
$
34.15
$ 71,039
2
$
35.85
$ 74,559
3
$
37.64
$ 78,297
4
$
39.56
$ 82,275
5
$
41.49
$ 86,303
6
$
43.60
$ 90,692
7
$
45.71
$ 95,080
8
$
47.98
$ 99,806
01/01/2022
PERMIT COUNTER SUPERVISOR
PROFESSIONAL TECHNICAL
39
1
$
36.16
$ 75,210
2
$
38.00
$ 79,045
3
$
39.87
$ 82,926
4
$
41.91
$ 87,171
5
$
43.97
$ 91,463
Proposed Citywide Salary Schedule
Page 24 of 39
June 14, 2022
22-48
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
6
$
46.19
$ 96,069
7
$
48.51
$ 100,891
8
$
50.89
$ 105,859
01/01/2022
PERMIT TECHNICIAN I
PROFESSIONAL TECHNICAL
24
1
$
28.43
$ 59,127
2
$
29.84
$ 62,069
3
$
31.34
$ 65,179
4
$
32.88
$ 68,386
5
$
34.52
$ 71,810
6
$
36.25
$ 75,404
7
$
38.08
$ 79,213
8
$
39.94
$ 83,071
01/01/2022
PERMIT TECHNICIAN II
PROFESSIONAL TECHNICAL
35
1
$
32.88
$ 68,386
2
$
34.52
$ 71,810
3
$
36.25
$ 75,404
4
$
38.08
$ 79,213
5
$
39.94
$ 83,071
6
$
42.00
$ 87,364
7
$
44.03
$ 91,583
8
$
46.30
$ 96,310
01/15/2022
PERMIT TECHNICIAN II P/T
PART-TIME EMPLOYEES
92A
1
$
30.94
$ 64,355
2
$
32.48
$ 67,564
3
$
34.09
$ 70,906
4
$
35.80
$ 74,469
5
$
37.56
$ 78,120
6
$
39.49
$ 82,148
7
$
41.42
$ 86,153
8
$
43.55
$ 90,580
01/01/2022
PLANNER, ASSISTANT
PROFESSIONAL TECHNICAL
35B
1
$
32.88
$ 68,386
2
$
34.52
$ 71,810
3
$
36.25
$ 75,404
4
$
38.08
$ 79,213
5
$
39.94
$ 83,071
6
$
42.00
$ 87,364
7
$
44.03
$ 91,583
8
$
46.30
$ 96,310
01/15/2022
PLANNER, ASSISTANT P/T
PART-TIME EMPLOYEES
35B
1
$
31.82
$ 66,192
2
$
33.42
$ 69,512
3
$
35.09
$ 72,986
4
$
36.86
$ 76,659
5
$
38.65
$ 80,400
6
$
40.65
$ 84,560
7
$
42.61
$ 88,632
8
$
44.81
$ 93,213
01/01/2022
PLANNER, ASSOCIATE
PROFESSIONAL TECHNICAL
55
1
$
36.24
$ 75,379
2
$
38.06
$ 79,165
3
$
39.94
$ 83,071
4
$
41.94
$ 87,243
5
$
44.03
$ 91,583
6
$
46.23
$ 96,165
7
$
48.53
$ 100,940
Proposed Citywide Salary Schedule
Page 25 of 39
June 14, 2022
22-49
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
8
$
50.99
$ 106,052
01/15/2022
PLANNER, PRINCIPAL
KEY&MGT, CONFIDENTIAL
27
1
$
48.48
$ 100,843
2
$
50.93
$ 105,933
3
$
53.45
$ 111,168
4
$
56.15
$ 116,794
5
$
58.95
$ 122,614
6
$
61.90
$ 128,751
7
$
64.99
$ 135,180
8
$
68.26
$ 141,974
01/15/2022
PLANNER, PRINCIPAL P/T
PART-TIME EMPLOYEES
27
1
$
46.69
$ 97,119
2
$
49.05
$ 102,021
3
$
51.47
$ 107,063
4
$
54.08
$ 112,481
5
$
56.77
$ 118,087
6
$
59.61
$ 123,997
7
$
62.59
$ 130,188
8
$
65.74
$ 136,732
01/15/2022
PLANNER, PRINCIPAL P/T
PART-TIME EMPLOYEES
27R
1
$
65.74
$ 136,732
01/01/2022
PLANNER, SENIOR
PROFESSIONAL TECHNICAL
75
1
$
43.59
$ 90,667
2
$
45.71
$ 95,080
3
$
47.98
$ 99,806
4
$
50.43
$ 104,894
5
$
52.92
$ 110,079
6
$
55.55
$ 115,552
7
$
58.35
$ 121,364
8
$
61.28
$ 127,464
01/15/2022
PLANNING MANAGER
KEY&MGT, DIVISION MGMT
11
1
$
62.10
$ 129,165
2
$
65.20
$ 135,618
3
$
68.44
$ 142,364
4
$
71.86
$ 149,475
5
$
75.48
$ 156,999
01/01/2022
PLANNING TECHNICIAN
PROFESSIONAL TECHNICAL
34
1
$
29.90
$ 62,189
2
$
31.42
$ 65,348
3
$
32.97
$ 68,579
4
$
34.62
$ 72,003
5
$
36.38
$ 75,669
6
$
38.15
$ 79,358
7
$
40.09
$ 83,385
8
$
42.08
$ 87,533
01/15/2022
PLANNING TECHNICIAN P/T
PART-TIME EMPLOYEES
34
1
$
28.94
$ 60,194
2
$
30.41
$ 63,249
3
$
31.91
$ 66,369
4
$
33.50
$ 69,688
5
$
35.21
$ 73,229
6
$
36.93
$ 76,814
7
$
38.80
$ 80,709
8
$
40.73
$ 84,715
07/03/2021
POLICE ANIMAL CONTROL OFFICER
POLICE, NONSWORN
52
1
$
28.06
$ 58,361
2
$
29.46
$ 61,275
3
$
30.94
$ 64,365
Proposed Citywide Salary Schedule
Page 26 of 39
June 14, 2022
22-50
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
4
$
32.48
$ 67,566
5
$
34.12
$ 70,965
6
$
35.83
$ 74,519
7
$
37.62
$ 78,249
8
$
39.50
$ 82,156
07/03/2021
POLICE ANIMAL CONTROL OFFICER, SENIOR
POLICE, NONSWORN
90
1
$
32.35
$ 67,279
2
$
34.00
$ 70,722
3
$
35.69
$ 74,232
4
$
37.47
$ 77,940
5
$
39.33
$ 81,803
6
$
41.31
$ 85,931
7
$
43.37
$ 90,213
8
$
45.55
$ 94,738
01/01/2022
POLICE CADET P/T
PART-TIME EMPLOYEES
40
1
$
15.26
$ 31,749
1
$
15.42
$ 32,067
2
$
16.02
$ 33,327
2
$
16.18
$ 33,660
3
$
16.82
$ 34,993
3
$
16.99
$ 35,343
4
$
17.66
$ 36,743
4
$
17.84
$ 37,110
5
$
18.55
$ 38,580
5
$
18.73
$ 38,966
01/15/2022
POLICE CHIEF
KEY&MGT, EXECUTIVE SFTY
02B
0
$
83.69
$ 174,082
1
$
104.61
$ 217,584
2
$
125.52
$ 261,088
03/27/2021
POLICE CHIEF, ASSISTANT
KEY&MGT, ADMIN MGT SFTY
03A
1
$
90.35
$ 187,936
2
$
94.88
$ 197,348
3
$
99.62
$ 207,218
4
$
104.61
$ 217,593
5
$
109.83
$ 228,450
07/03/2021
POLICE CIVILIAN CUSTODY SUPERVISOR
POLICE, NONSAFETY
15B
1
$
37.51
$ 78,029
2
$
39.39
$ 81,935
3
$
41.36
$ 86,019
4
$
43.41
$ 90,301
5
$
45.61
$ 94,870
6
$
47.88
$ 99,594
7
$
50.28
$ 104,583
8
$
52.78
$ 109,792
07/03/2021
POLICE CIVILIAN INVESTIGATOR
POLICE, NONSAFETY
43A
1
$
29.67
$ 61,716
2
$
31.17
$ 64,829
3
$
32.73
$ 68,073
4
$
34.35
$ 71,451
5
$
36.07
$ 75,027
6
$
37.87
$ 78,779
7
$
39.75
$ 82,686
8
$
41.76
$ 86,858
07/03/2021
POLICE CIVILIAN SUPERVISOR
POLICE, NONSAFETY
15
1
$
37.51
$ 78,029
2
$
39.39
$ 81,935
3
$
41.36
$ 86,019
Proposed Citywide Salary Schedule
Page 27 of 39
June 14, 2022
22-51
REVISION DATE POSITION TITLE
07/03/2021
01/15/2022
07/03/2021
07/03/2021
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
POLICE COMMUNITY SRVCS OFFICER
POLICE COMMUNITY SRVCS OFFICER P/T
EE GROUP
POLICE, NONSAFETY
PART-TIME EMPLOYEES
POLICE COMMUNITY SRVCS OFFICER, SENIOR POLICE, NONSAFETY
POLICE COMPUTER SYSTEMS MANAGER
07/03/2021 POLICE CRIME ANALYST, SENIOR
07/03/2021 POLICE CRIME PREVENTION SPECIALIST
Proposed Citywide Salary Schedule
POLICE, NONSAFETY
POLICE, NONSAFETY
POLICE, NONSAFETY
Page 28 of 39
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
4
$
43.41
$ 90,301
5
$
45.61
$ 94,870
6
$
47.88
$ 99,594
7
$
50.28
$ 104,583
8
$
52.78
$ 109,792
05
1
$
22.53
$ 46,861
2
$
23.63
$ 49,157
3
$
24.83
$ 51,651
4
$
26.07
$ 54,234
5
$
27.36
$ 56,904
6
$
28.74
$ 59,774
7
$
30.18
$ 62,776
8
$
31.67
$ 65,866
9
$
33.26
$ 69,177
10
$
34.95
$ 72,687
O5C
1
$
22.51
$ 46,828
2
$
23.63
$ 49,152
3
$
24.81
$ 51,608
4
$
26.06
$ 54,197
5
$
27.38
$ 56,942
6
$
28.73
$ 59,752
7
$
30.16
$ 62,739
8
$
31.67
$ 65,882
9
$
33.26
$ 69,180
10
$
34.93
$ 72,654
40
1
$
28.73
$ 59,750
2
$
30.16
$ 62,737
3
$
31.67
$ 65,874
4
$
33.25
$ 69,168
5
$
34.92
$ 72,626
6
$
36.66
$ 76,257
7
$
38.50
$ 80,070
8
$
40.42
$ 84,074
25
1
$
53.12
$ 110,498
2
$
55.79
$ 116,039
3
$
58.57
$ 121,822
4
$
61.51
$ 127,936
5
$
64.55
$ 134,271
6
$
67.81
$ 141,047
7
$
71.20
$ 148,088
8
$
74.74
$ 155,461
87
1
$
32.35
$ 67,279
2
$
34.00
$ 70,722
3
$
35.69
$ 74,232
4
$
37.47
$ 77,940
5
$
39.33
$ 81,803
6
$
41.31
$ 85,931
7
$
43.37
$ 90,213
8
$
45.55
$ 94,738
21
1
$
30.71
$ 63,880
June 14, 2022
22-52
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
2
$
32.26
$ 67,102
3
$
33.86
$ 70,436
4
$
35.57
$ 73,989
5
$
37.35
$ 77,697
6
$
39.22
$ 81,582
7
$
41.16
$ 85,622
8
$
43.24
$ 89,948
07/03/2021
POLICE CRIME SCENE INVESTIGATOR
POLICE, NONSAFETY
43
1
$
29.67
$ 61,716
2
$
31.17
$ 64,829
3
$
32.73
$ 68,073
4
$
34.35
$ 71,451
5
$
36.07
$ 75,027
6
$
37.87
$ 78,779
7
$
39.75
$ 82,686
8
$
41.76
$ 86,858
07/03/2021
POLICE CRIME SCENE INVESTIGATOR, SENIOR
POLICE, NONSAFETY
86
1
$
32.09
$ 66,749
2
$
33.69
$ 70,082
3
$
35.37
$ 73,570
4
$
37.11
$ 77,190
5
$
38.99
$ 81,097
6
$
40.93
$ 85,136
7
$
42.99
$ 89,418
8
$
45.14
$ 93,899
07/03/2021
POLICE CUSTODY OFFICER
POLICE, NONSAFETY
55
1
$
28.18
$ 58,604
2
$
29.61
$ 61,584
3
$
31.06
$ 64,608
4
$
32.63
$ 67,875
5
$
34.26
$ 71,252
6
$
35.98
$ 74,828
7
$
37.76
$ 78,536
8
$
39.66
$ 82,487
07/03/2021
POLICE DISPATCHER
POLICE, NONSAFETY
70
1
$
28.72
$ 59,730
2
$
30.16
$ 62,732
3
$
31.66
$ 65,844
4
$
33.24
$ 69,133
5
$
34.92
$ 72,643
6
$
36.65
$ 76,241
7
$
38.49
$ 80,059
8
$
40.41
$ 84,054
01/15/2022
POLICE DISPATCHER P/T
PART-TIME EMPLOYEES
70A
1
$
28.73
$ 59,752
2
$
30.17
$ 62,762
3
$
31.68
$ 65,904
4
$
33.27
$ 69,201
5
$
34.94
$ 72,676
6
$
36.69
$ 76,305
7
$
38.52
$ 80,112
8
$
40.44
$ 84,118
07/03/2021
POLICE DISPATCHER, SENIOR
POLICE, NONSAFETY
99
1
$
33.02
$ 68,691
2
$
34.67
$ 72,113
3
$
36.39
$ 75,689
Proposed Citywide Salary Schedule
Page 29 of 39
June 14, 2022
22-53
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
4
$
38.22
$ 79,507
5
$
40.15
$ 83,503
6
$
42.14
$ 87,653
7
$
44.24
$ 92,023
8
$
46.46
$ 96,636
07/03/2021
POLICE ELECTRONICS SPECIALIST
POLICE, NONSAFETY
05A
1
$
36.17
$ 75,225
2
$
37.98
$ 79,000
3
$
39.88
$ 82,951
4
$
41.89
$ 87,123
5
$
43.97
$ 91,449
6
$
46.16
$ 96,018
7
$
48.48
$ 100,830
8
$
50.90
$ 105,863
07/03/2021
POLICE EMERGENCY SERVICES COORDINATOR
POLICE, NONSAFETY
04
1
$
37.41
$ 77,808
2
$
39.25
$ 81,649
3
$
41.19
$ 85,666
4
$
43.27
$ 89,992
5
$
45.46
$ 94,561
6
$
47.70
$ 99,219
7
$
50.08
$ 104,163
8
$
52.60
$ 109,417
07/03/2021
POLICE FISCAL SERVICES/FACILITIES MANAGER
POLICE, NONSAFETY
03
1
$
42.93
$ 89,286
2
$
45.07
$ 93,745
3
$
47.32
$ 98,424
4
$
49.68
$ 103,324
5
$
52.18
$ 108,534
6
$
54.79
$ 113,964
7
$
57.54
$ 119,681
8
$
60.37
$ 125,574
07/03/2021
POLICE IT ANALYST
POLICE, NONSAFETY
61
1
$
37.58
$ 78,161
2
$
39.47
$ 82,090
3
$
41.42
$ 86,151
4
$
43.48
$ 90,434
5
$
45.67
$ 95,003
6
$
47.95
$ 99,726
7
$
50.35
$ 104,737
8
$
52.86
$ 109,946
07/03/2021
POLICE IT COORDINATOR
POLICE, NONSAFETY
02A
1
$
44.00
$ 91,515
2
$
46.19
$ 96,084
3
$
48.52
$ 100,918
4
$
50.92
$ 105,907
5
$
53.50
$ 111,271
6
$
56.15
$ 116,789
7
$
58.96
$ 122,638
8
$
61.91
$ 128,774
03/27/2021
POLICE LIEUTENANT
POLICE MANAGEMENT
65
1
$
58.86
$ 122,438
2
$
61.82
$ 128,583
3
$
64.90
$ 134,992
4
$
68.13
$ 141,712
5
$
71.55
$ 148,818
Proposed Citywide Salary Schedule
Page 30 of 39
June 14, 2022
22-54
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
6
$
75.12
$ 156,258
7
$
78.89
$ 164,083
8
$
82.83
$ 172,292
07/03/2021
POLICE
MECHANIC I
POLICE, NONSAFETY
17
1
$
23.45
$ 48,782
2
$
24.60
$ 51,165
3
$
25.83
$ 53,726
4
$
27.14
$ 56,441
5
$
28.49
$ 59,266
6
$
29.94
$ 62,268
7
$
31.43
$ 65,380
8
$
32.98
$ 68,603
07/03/2021
POLICE
MECHANIC II
POLICE, NONSAFETY
18
1
$
27.16
$ 56,485
2
$
28.50
$ 59,288
3
$
29.96
$ 62,312
4
$
31.46
$ 65,447
5
$
33.02
$ 68,691
6
$
34.67
$ 72,113
7
$
36.39
$ 75,689
8
$
38.22
$ 79,507
07/03/2021
POLICE
MECHANIC, SENIOR
POLICE, NONSAFETY
19
1
$
29.96
$ 62,312
2
$
31.46
$ 65,447
3
$
33.02
$ 68,691
4
$
34.68
$ 72,135
5
$
36.39
$ 75,689
6
$
38.22
$ 79,507
7
$
40.15
$ 83,503
8
$
42.14
$ 87,653
07/03/2021
POLICE
OFFICER
POLICE, SAFETY
15A
1
$
34.50
$ 71,760
2
$
36.24
$ 75,380
3
$
38.04
$ 79,132
4
$
39.97
$ 83,127
5
$
41.96
$ 87,277
6
$
44.03
$ 91,581
7
$
48.43
$ 100,742
8
$
50.85
$ 105,775
9
$
53.40
$ 111,072
10
$
56.07
$ 116,634
11
$
58.88
$ 122,462
07/03/2021
POLICE
RANG EMASTER-ARMORER
POLICE, NONSAFETY
45
1
$
27.98
$ 58,207
2
$
29.37
$ 61,098
3
$
30.87
$ 64,211
4
$
32.40
$ 67,389
5
$
34.03
$ 70,788
6
$
35.71
$ 74,276
7
$
37.50
$ 78,007
8
$
39.36
$ 81,869
07/03/2021
POLICE
RECRUIT
POLICE, NONSAFETY
07
1
$
31.24
$ 64,983
01/15/2022
POLICE
RESERVE P/T
PART-TIME EMPLOYEES
01A
1
$
25.07
$ 52,153
2
$
26.33
$ 54,761
3
$
27.64
$ 57,499
Proposed Citywide
Salary Schedule
Page 31 of 39
June 14, 2022
22-55
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
4
$
29.03
$ 60,374
5
$
30.48
$ 63,393
6
$
32.00
$ 66,562
7
$
33.60
$ 69,890
8
$
35.28
$ 73,385
03/27/2021
POLICE SERGEANT
POLICE MANAGEMENT
40
1
$
50.08
$ 104,172
2
$
52.60
$ 109,405
3
$
55.24
$ 114,902
4
$
57.99
$ 120,614
5
$
60.88
$ 126,639
6
$
63.92
$ 132,951
7
$
67.13
$ 139,624
8
$
70.46
$ 146,561
07/03/2021
POLICE STATION OFFICER
POLICE, NONSAFETY
52A
1
$
28.06
$ 58,361
2
$
29.46
$ 61,275
3
$
30.94
$ 64,365
4
$
32.48
$ 67,566
5
$
34.12
$ 70,965
6
$
35.83
$ 74,519
7
$
37.62
$ 78,249
8
$
39.50
$ 82,156
01/15/2022
POLICE SUPPORT SERVICES ADMINISTRATOR
KEY&MGT, ADMIN MGT
28
1
$
73.07
$ 151,983
2
$
76.72
$ 159,581
3
$
80.56
$ 167,568
4
$
84.58
$ 175,922
5
$
88.80
$ 184,713
01/15/2022
POOL LIFEGUARD P/T
PART-TIME EMPLOYEES
80
1
$
15.15
$ 31,514
2
$
15.90
$ 33,063
3
$
16.70
$ 34,745
4
$
17.54
$ 36,482
5
$
18.42
$ 38,306
01/15/2022
POOL LIFEGUARD, SENIOR P/T
PART-TIME EMPLOYEES
86
1
$
19.89
$ 41,362
2
$
20.90
$ 43,464
3
$
21.93
$ 45,611
4
$
23.05
$ 47,934
5
$
24.23
$ 50,391
01/15/2022
POOL SWIM INSTRUCTOR P/T
PART-TIME EMPLOYEES
85A
1
$
16.20
$ 33,704
2
$
17.02
$ 35,408
3
$
17.87
$ 37,179
4
$
18.76
$ 39,016
5
$
19.69
$ 40,963
01/15/2022
POOL SWIM INSTRUCTOR TRAINEE P/T
PART-TIME EMPLOYEES
01
1
$
15.00
$ 31,200
01/15/2022
PUBLIC INFORMATION MANAGER
KEY&MGT, DIVISION MGMT
14
1
$
66.25
$ 137,810
2
$
69.58
$ 144,726
3
$
73.07
$ 151,983
4
$
76.71
$ 159,557
5
$
80.53
$ 167,496
01/15/2022
PUBLIC INFORMATION SPECIALIST
KEY&MGT, CONFIDENTIAL
07B
1
$
32.70
$ 68,016
2
$
34.33
$ 71,401
3
$
36.07
$ 75,030
Proposed Citywide Salary Schedule
Page 32 of 39
June 14, 2022
22-56
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
4
$
37.84
$ 78,707
5
$
39.75
$ 82,676
6
$
41.74
$ 86,816
7
$
43.86
$ 91,224
8
$
46.02
$ 95,729
01/15/2022
PUBLIC WORKS CREW CHIEF
EMPLOYEES LEAGUE
25
1
$
31.16
$ 64,808
2
$
32.73
$ 68,078
3
$
34.35
$ 71,445
4
$
36.05
$ 74,980
5
$
37.89
$ 78,803
6
$
39.78
$ 82,747
7
$
41.79
$ 86,932
8
$
43.88
$ 91,260
01/15/2022
PUBLIC WORKS DIRECTOR
KEY&MGT, EXECUTIVE
15G
0
$
80.01
$ 166,424
1
$
100.01
$ 208,018
2
$
120.01
$ 249,612
01/15/2022
PUBLIC WORKS DIRECTOR, DEPUTY (CITY ENGINEER)
KEY&MGT, ADMIN MGT
29A
1
$
87.90
$ 182,838
2
$
92.30
$ 191,994
3
$
96.91
$ 201,564
4
$
101.75
$ 211,646
5
$
106.85
$ 222,240
01/15/2022
PUBLIC WORKS DIRECTOR, DEPUTY (MUNICIPAL OPS)
KEY&MGT, ADMIN MGT
17B
1
$
74.97
$ 155,928
2
$
78.68
$ 163,648
3
$
82.62
$ 171,854
4
$
86.76
$ 180,451
5
$
91.11
$ 189,510
01/15/2022
PUBLIC WORKS FINANCE/ADMIN MANAGER
KEY&MGT, DIVISION MGMT
14A
1
$
66.25
$ 137,810
2
$
69.58
$ 144,726
3
$
73.07
$ 151,983
4
$
76.71
$ 159,557
5
$
80.53
$ 167,496
01/01/2022
PUBLIC WORKS INSPECTOR I
PROFESSIONAL TECHNICAL
33
1
$
33.69
$ 70,074
2
$
35.36
$ 73,547
3
$
37.13
$ 77,236
4
$
39.02
$ 81,167
5
$
40.94
$ 85,145
6
$
42.99
$ 89,413
7
$
45.13
$ 93,874
8
$
47.40
$ 98,601
01/01/2022
PUBLIC WORKS INSPECTOR II
PROFESSIONAL TECHNICAL
36A
1
$
36.19
$ 75,283
2
$
38.03
$ 79,093
3
$
39.93
$ 83,047
4
$
41.93
$ 87,219
5
$
44.02
$ 91,559
6
$
46.21
$ 96,117
7
$
48.52
$ 100,915
8
$
50.95
$ 105,979
01/01/2022
PUBLIC WORKS INSPECTOR, SENIOR
PROFESSIONAL TECHNICAL
44
1
$
38.92
$ 80,949
2
$
40.85
$ 84,976
3
$
42.93
$ 89,293
Proposed Citywide Salary Schedule
Page 33 of 39
June 14, 2022
22-57
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE POSITION TITLE EE GROUP
01/01/2022 PUBLIC WORKS SPECIALIST CITY EMPLOYEES
01/15/2022 PUBLIC WORKS SUPERVISOR EMPLOYEES LEAGUE
01/15/2022 PUBLIC WORKS TECHNICAL AIDE P/T PART-TIME EMPLOYEES
01/15/2022 PURCHASING & CONTRACTS ADMINISTRATOR KEY&MGT, CONFIDENTIAL
01/15/2022 REAL PROPERTY ADMINISTRATOR KEY&MGT, CONFIDENTIAL
01/01/2022 RECORDS SPECIALIST CITY EMPLOYEES
Proposed Citywide Salary Schedule Page 34 of 39
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
4
$
45.05
$ 93,706
5
$
47.32
$ 98,431
6
$
49.63
$ 103,230
7
$
52.18
$ 108,535
8
$
54.78
$ 113,937
57A
1
$
29.79
$ 61,972
2
$
31.28
$ 65,059
3
$
32.85
$ 68,338
4
$
34.48
$ 71,714
5
$
36.21
$ 75,307
6
$
38.06
$ 79,165
7
$
39.93
$ 83,047
8
$
41.96
$ 87,267
65
1
$
36.09
$ 75,061
2
$
37.89
$ 78,804
3
$
39.80
$ 82,775
4
$
41.78
$ 86,906
5
$
43.86
$ 91,219
6
$
46.03
$ 95,738
7
$
48.34
$ 100,553
8
$
50.77
$ 105,597
75
1
$
17.16
$ 35,696
2
$
18.07
$ 37,578
3
$
18.96
$ 39,436
4
$
19.87
$ 41,339
5
$
20.89
$ 43,442
19A
1
$
46.19
$ 96,070
2
$
48.48
$ 100,843
3
$
50.94
$ 105,957
4
$
53.45
$ 111,168
5
$
56.15
$ 116,794
6
$
58.95
$ 122,614
7
$
61.90
$ 128,751
8
$
65.01
$ 135,229
19B
1
$
46.19
$ 96,070
2
$
48.48
$ 100,843
3
$
50.94
$ 105,957
4
$
53.45
$ 111,168
5
$
56.15
$ 116,794
6
$
58.95
$ 122,614
7
$
61.90
$ 128,751
8
$
65.01
$ 135,229
76
1
$
30.64
$ 63,732
2
$
32.17
$ 66,915
3
$
33.77
$ 70,243
4
$
35.44
$ 73,715
5
$
37.23
$ 77,429
6
$
39.07
$ 81,263
7
$
41.06
$ 85,410
8
$
43.06
$ 89,558
June 14, 2022
22-58
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE POSITION TITLE EE GROUP
01/15/2022 RECORDS SPECIALIST P/T PART-TIME EMPLOYEES
01/15/2022 RECREATION & SR SRVCS DIRECTOR KEY&MGT, EXECUTIVE
01/15/2022 RECREATION & SR SRVCS DIRECTOR, DEPUTY KEY&MGT, ADMIN MGT
01/15/2022 RECREATION & SR SRVCS MANAGER
01/01/2022 RECREATION COORDINATOR
01/15/2022 RECREATION COORDINATOR P/T
KEY&MGT, DIVISION MGMT
CITY EMPLOYEES
PART-TIME EMPLOYEES
01/01/2022 RECREATION COORDINATOR, ASSISTANT CITY EMPLOYEES
01/15/2022 RECREATION COORDINATOR, ASSISTANT P/T PART-TIME EMPLOYEES
Proposed Citywide Salary Schedule Page 35 of 39
GRADE
STEP
HOURLY
RATE
ANNUAL SALARY
17
1
$
28.83
$ 59,973
2
$
30.27
$ 62,961
3
$
31.79
$ 66,126
4
$
33.38
$ 69,423
5
$
35.05
$ 72,897
6
$
36.80
$ 76,549
7
$
38.64
$ 80,377
8
$
40.57
$ 84,383
11D
0
$
75.69
$ 157,438
1
$
94.61
$ 196,791
2
$
113.53
$ 236,145
15
1
$
71.34
$ 148,379
2
$
74.91
$ 155,806
3
$
78.64
$ 163,575
4
$
82.58
$ 171,757
5
$
86.71
$ 180,353
05A
1
$
53.04
$ 110,316
2
$
55.68
$ 115,819
3
$
58.49
$ 121,664
4
$
61.43
$ 127,777
5
$
64.48
$ 134,108
05A
1
$
28.33
$ 58,934
2
$
29.76
$ 61,900
3
$
31.23
$ 64,962
4
$
32.83
$ 68,290
5
$
34.45
$ 71,666
6
$
36.18
$ 75,259
7
$
38.01
$ 79,069
8
$
39.87
$ 82,926
56
1
$
28.04
$ 58,323
2
$
29.45
$ 61,258
3
$
30.91
$ 64,288
4
$
32.49
$ 67,582
5
$
34.10
$ 70,923
6
$
35.81
$ 74,479
7
$
37.62
$ 78,249
8
$
39.46
$ 82,067
07A
1
$
23.28
$ 48,420
2
$
24.44
$ 50,831
3
$
25.67
$ 53,387
4
$
26.93
$ 56,016
5
$
28.30
$ 58,861
6
$
29.71
$ 61,803
7
$
31.21
$ 64,914
8
$
32.76
$ 68,145
06
1
$
21.91
$ 45,566
2
$
23.00
$ 47,846
3
$
24.16
$ 50,258
4
$
25.36
$ 52,759
5
$
26.63
$ 55,392
June 14, 2022
22-59
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
6
$
27.95
$ 58,137
7
$
29.35
$ 61,058
8
$
30.80
$ 64,067
01/15/2022
RECREATION LEADER P/T
PART-TIME EMPLOYEES
45
1
$
15.56
$ 32,355
2
$
16.36
$ 34,037
3
$
17.18
$ 35,739
4
$
18.04
$ 37,526
5
$
18.94
$ 39,402
01/15/2022
RECREATION LEADER, SENIOR P/T
PART-TIME EMPLOYEES
55A
1
$
17.16
$ 35,696
2
$
18.07
$ 37,578
3
$
18.96
$ 39,436
4
$
19.87
$ 41,339
5
$
20.89
$ 43,442
01/01/2022
RECREATION SUPERVISOR
CITY EMPLOYEES
04
1
$
33.12
$ 68,885
2
$
34.79
$ 72,361
3
$
36.51
$ 75,940
4
$
38.33
$ 79,723
5
$
40.27
$ 83,761
6
$
42.26
$ 87,902
7
$
44.41
$ 92,375
8
$
46.62
$ 96,976
01/15/2022
RECREATION SUPERVISOR P/T
PART-TIME EMPLOYEES
04A
1
$
32.06
$ 66,679
2
$
33.67
$ 70,042
3
$
35.33
$ 73,495
4
$
37.10
$ 77,169
5
$
38.97
$ 81,063
6
$
40.90
$ 85,069
7
$
42.98
$ 89,407
8
$
45.12
$ 93,855
01/01/2022
REVENUE AUDITOR
PROFESSIONAL TECHNICAL
59
1
$
36.66
$ 76,247
2
$
38.54
$ 80,154
3
$
40.44
$ 84,108
4
$
42.42
$ 88,232
5
$
44.56
$ 92,693
6
$
46.81
$ 97,371
7
$
49.13
$ 102,194
8
$
51.59
$ 107,306
01/15/2022
REVENUE MANAGER
KEY&MGT, DIVISION MGMT
16D
1
$
69.59
$ 144,751
2
$
73.08
$ 152,008
3
$
76.73
$ 159,605
4
$
80.57
$ 167,593
5
$
84.57
$ 175,897
01/15/2022
REVIEW OFFICER P/T
PART-TIME EMPLOYEES
95
1
$
34.53
$ 71,813
2
$
36.24
$ 75,376
3
$
38.05
$ 79,138
4
$
39.96
$ 83,121
01/15/2022
SENIOR SERVICES SHUTTLE DRIVER
EMPLOYEES LEAGUE
10
1
$
22.15
$ 46,075
2
$
23.23
$ 48,312
3
$
24.44
$ 50,837
4
$
25.65
$ 53,361
Proposed Citywide Salary Schedule
Page 36 of 39
June 14, 2022
22-60
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
5
$
26.91
$ 55,983
6
$
28.26
$ 58,772
7
$
29.68
$ 61,730
8
$
31.18
$ 64,856
01/15/2022
SENIOR SERVICES SHUTTLE DRIVER P/T
PART-TIME EMPLOYEES
05D
1
$
21.22
$ 44,128
2
$
22.24
$ 46,253
3
$
23.41
$ 48,687
4
$
24.57
$ 51,099
5
$
25.80
$ 53,666
6
$
27.06
$ 56,277
7
$
28.42
$ 59,110
8
$
29.88
$ 62,142
01/15/2022
STUDENT AIDE PT
PART-TIME EMPLOYEES
70B
1
$
15.48
$ 32,200
2
$
16.25
$ 33,793
3
$
17.06
$ 35,475
4
$
17.91
$ 37,248
5
$
18.80
$ 39,111
6
$
19.74
$ 41,067
01/15/2022
SUPERINTENDENT
KEY&MGT, DIVISION MGMT
10A
1
$
60.01
$ 124,830
2
$
63.00
$ 131,040
3
$
66.17
$ 137,640
4
$
69.49
$ 144,531
5
$
72.96
$ 151,764
01/15/2022
SUPPORT SERVICES AIDE P/T
PART-TIME EMPLOYEES
50B
1
$
22.27
$ 46,319
2
$
23.40
$ 48,664
3
$
24.55
$ 51,055
4
$
25.80
$ 53,666
5
$
27.07
$ 56,300
6
$
28.42
$ 59,110
7
$
29.85
$ 62,098
8
$
31.32
$ 65,152
01/15/2022
SYSTEMS & ADMIN MANAGER
KEY&MGT, DIVISION MGMT
07A
1
$
56.15
$ 116,794
2
$
58.95
$ 122,614
3
$
61.90
$ 128,751
4
$
64.99
$ 135,180
5
$
68.26
$ 141,974
01/01/2022
TRAFFIC ENGINEER TECHNICIAN
PROFESSIONAL TECHNICAL
37A
1
$
33.74
$ 70,171
2
$
35.41
$ 73,643
3
$
37.17
$ 77,308
4
$
39.05
$ 81,215
5
$
41.04
$ 85,362
6
$
43.03
$ 89,510
7
$
45.22
$ 94,067
8
$
47.49
$ 98,769
01/01/2022
TRAFFIC ENGINEER TECHNICIAN, SENIOR
PROFESSIONAL TECHNICAL
48
1
$
35.42
$ 73,667
2
$
37.20
$ 77,381
3
$
39.07
$ 81,263
4
$
41.03
$ 85,338
5
$
43.06
$ 89,558
6
$
45.22
$ 94,067
Proposed Citywide Salary Schedule
Page 37 of 39
June 14, 2022
22-61
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
7
$
47.49
$ 98,769
8
$
49.86
$ 103,713
01/15/2022
UTILITIES CREW CHIEF
EMPLOYEES LEAGUE
25G
1
$
31.16
$ 64,808
2
$
32.73
$ 68,078
3
$
34.35
$ 71,445
4
$
36.05
$ 74,980
5
$
37.89
$ 78,803
6
$
39.78
$ 82,747
7
$
41.79
$ 86,932
8
$
43.88
$ 91,260
01/15/2022
UTILITIES DIRECTOR
KEY&MGT, EXECUTIVE
11F
0
$
75.69
$ 157,438
1
$
94.61
$ 196,791
2
$
113.53
$ 236,145
01/15/2022
UTILITIES SCADA COORDINATOR
EMPLOYEES LEAGUE
03
1
$
33.41
$ 69,497
2
$
35.09
$ 72,984
3
$
36.85
$ 76,639
4
$
38.66
$ 80,415
5
$
40.64
$ 84,527
6
$
42.65
$ 88,711
7
$
44.80
$ 93,184
8
$
47.03
$ 97,825
01/15/2022
UTILITIES SPECIALIST
EMPLOYEES LEAGUE
60
1
$
25.83
$ 53,722
2
$
27.13
$ 56,440
3
$
28.48
$ 59,229
4
$
29.90
$ 62,187
5
$
31.38
$ 65,265
6
$
33.00
$ 68,631
7
$
34.61
$ 71,998
8
$
36.35
$ 75,605
01/15/2022
UTILITIES SPECIALIST P/T
PART-TIME EMPLOYEES
60
1
$
25.67
$ 53,401
2
$
26.97
$ 56,102
3
$
28.31
$ 58,875
4
$
29.72
$ 61,815
5
$
31.19
$ 64,875
6
$
32.80
$ 68,221
7
$
34.41
$ 71,567
8
$
36.13
$ 75,153
01/15/2022
UTILITIES SPECIALIST, SENIOR
EMPLOYEES LEAGUE
01
1
$
27.76
$ 57,738
2
$
29.16
$ 60,647
3
$
30.61
$ 63,678
4
$
32.14
$ 66,852
5
$
33.76
$ 70,219
6
$
35.45
$ 73,730
7
$
37.22
$ 77,409
8
$
39.07
$ 81,256
01/15/2022
UTILITIES SUPERVISOR
EMPLOYEES LEAGUE
55
1
$
36.05
$ 74,980
2
$
37.89
$ 78,803
3
$
39.78
$ 82,747
4
$
41.78
$ 86,907
5
$
43.88
$ 91,260
Proposed Citywide Salary Schedule
Page 38 of 39
June 14, 2022
22-62
City of Newport Beach
Citywide Salary Schedule
Proposed to the City Council (Governing Body) for Adoption on June 14, 2022
REVISION DATE
POSITION TITLE
EE GROUP
GRADE
STEP
HOURLY RATE
ANNUAL SALARY
6
$
46.05
$ 95,781
7
$
48.33
$ 100,519
8
$
50.77
$ 105,593
01/01/2022
WATER CONSERVATION COORDINATOR
PROFESSIONAL TECHNICAL
40
1
$
37.76
$ 78,538
2
$
39.65
$ 82,468
3
$
41.61
$ 86,544
4
$
43.68
$ 90,860
5
$
45.91
$ 95,490
6
$
48.18
$ 100,216
7
$
50.57
$ 105,184
8
$
53.15
$ 110,561
0611812022
WATER OPERATIONS SUPERINTENDENT
KEY&MGT, DIVISION MGMT
10
1
$
63.02
$ 131,072
2
$
66.15
$ 137,590
3
$
69.48
$ 144,522
4
$
72.96
$ 151,758
5
$
76.61
$ 159,352
01/15/2022
WATER PRODUCTION OPERATOR
EMPLOYEES LEAGUE
26
1
$
32.73
$ 68,078
2
$
34.35
$ 71,445
3
$
36.05
$ 74,980
4
$
37.89
$ 78,803
5
$
39.78
$ 82,747
6
$
41.78
$ 86,907
7
$
43.88
$ 91,260
8
$
46.05
$ 95,781
01/15/2022
WATER PRODUCTION SUPERVISOR
EMPLOYEES LEAGUE
65B
1
$
37.89
$ 78,803
2
$
39.78
$ 82,747
3
$
41.78
$ 86,907
4
$
43.88
$ 91,260
5
$
46.05
$ 95,781
6
$
48.33
$ 100,519
7
$
50.77
$ 105,593
8
$
53.31
$ 110,883
01/15/2022
WATER QUALITY COORDINATOR
EMPLOYEES LEAGUE
55B
1
$
36.05
$ 74,980
2
$
37.89
$ 78,803
3
$
39.78
$ 82,747
4
$
41.78
$ 86,907
5
$
43.88
$ 91,260
6
$
46.05
$ 95,781
7
$
48.33
$ 100,519
8
$
50.77
$ 105,593
1 Hired into position before October 27, 2018
Z Hired before January 1, 2016
3 Hired on or after January 1, 2016
Hourly rates are rounded to the nearest hundredths. Annual salaries are rounded to the nearest dollar.
Disclaimer: Salary ranges may be adjusted to accommodate minimum wage increases set by the State of California Department of Industrial Relations.
Proposed Citywide Salary Schedule Page 39 of 39 June 14, 2022
22-63
Attachment C
Salary Schedule for Lifeguard Operations Assistant Chief
22-64
NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION
MOU Term: January 1, 2022 - December 31, 2025
Cost of Living Adjustments for Lifeguard Operations, Assistant Chief
2% increase of base salary each year on the listed effective date
LffKey and Management Position Step
ective Date
Administrative Management Safety
01/15/2022 Lifeguard Operations, Assistant Chief 02 1
2
3
4
5
01/14/2023 Lifeguard Operations, Assistant Chief
01/13/2024 Lifeguard Operations, Assistant Chief
01/11/2025 Lifeguard Operations, Assistant Chief
02
02
02
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
Hourly Rate Annual Salary
$ 68.80
$
143,103
$ 72.24
$
150,255
$ 75.84
$
157,743
$ 79.64
$
165,654
$ 83.63
$
173,946
$ 70.18
$
145,966
$ 73.68
$
153,260
$ 77.35
$
160,898
$ 81.23
$
168,967
$ 85.30
$
177,425
$ 71.58
$
148,885
$ 75.16
$
156,326
$ 78.90
$
164,116
$ 82.86
$
172,346
$ 87.01
$
180,973
$ 73.01
$
151,862
$ 76.66
$
159,452
$ 80.48
$
167,398
$ 84.52
$
175,794
$ 88.75
$
184,593
Hourly pay rates are rounded to the nearest hundredth.
Annual salary is rounded to the nearest whole dollar.
22-65
Attachment D
Budget Amendment No. 23-001
22-66
City of Newport Beach
BUDGET AMENDMENT
CgCIFOR�`P 2022-23 BA#: 23-001
Department: Finance
ONE TIME: f] Yes ❑ No
Requestor: Scott Catlett
Approvals
❑ CITY MANAGER'S APPROVAL ONLY J
Finance Director: Date
o COUNCIL APPROVAL REQUIRED City Clerk: Date
EXPLANATION FOR REQUEST:
To transfer structural surplus revenue to increase expenditure appropriations. Funds will be allocated to CaIPERS UAL ❑ from existing budget appropriations
Additional payment for FY 22-23, Facilities Financing Plan and FY 2023-24 Capital Improvement Projects. ❑ from additional estimated revenues
O from unappropriated fund balance
REVENUES
Fund #
Org
Object Project
Description
Increase or (Decrease) $
012
01299
691010
INTERFUNDTRANSFERS- TRANSFERINGENERALFUND
1,450,000.00
513
51399
691513
INTERFUND TRANSFERS -TRANSFER IN
FFP FUND
1,000,000.00
Subtotal $ 2,450,000.00
EXPENDITURES
Fund #
Org
Object Project
Description
Increase or (Decrease) $
01099
991513
GENERAL FUND INTERFUND TRANSFR
-TRANSFER OUT FFP
1,000,000.00
F010
O10
01099
991012
GENERAL FUND INTERFUND TRANSFR
- TRANSFER OUT CIP Fi
1,450,000.00
010
See Detail -Attached
5,000,000.00
Subtotal
$ 7,450,000.00
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
010
300000
GENERAL FUND - FUND BALANCE CONTROL
(7,450,000.00)
012
300000
GENERAL FUND CAPITAL PROJECTS - FUND BALANCE CONTROL
1,450,000.00
513
300000
FACILITIES FINANCING PLAN - FUND BALANCE CONTROL
1,000,000.00
Subtotal
$ (5,000,000.00)
Fund Balance Change Required
22-67
�EWRORT
City of Newport Beach
H+ s BUDGET AMENDMENT
c°1iFou*'`r 2022-23 BA#• 23-001
Department: Finance
ONE TIME: 0 Yes ❑ No
Requestor: Scott Catlett
Approvals
❑ CITY MANAGER'S APPROVAL ONLY
Finance Director: Date
❑ COUNCIL APPROVAL REQUIRED JCity Clerk: Date
To transfer structural surplus revenue to increase expenditure appropriations. Funds will be allocated to CalPERS UAL I1:1 from existing budget appropriations
Additional payment for FY 22-23, Facilities Financing Plan and FY 2023-24 Capital Improvement Projects. ❑ from additional estimated revenues
❑ from unappropriated fund balance
Fund # Org Object Project Description Increase or (Decrease) $
012 01299 691010 INTERFUND TRANSFERS - TRANSFER IN GENERAL FUND 1,450,000.00
513 51399 691010 INTERFUND TRANSFERS - TRANSFER IN GENERAL FUND 1,000,000.00
Subtotal $ 2,450,000.00
EXPENDITURES
Fund #
Org
Object
Project Description
Increase or (Decrease) $
010
01099
991513
GENERAL FUND INTERFUND TRANSFR -TRANSFER OUT FFP
1,000,000.00
010
01099
991012
GENERAL FUND INTERFUND TRANSFR - TRANSFER OUT CIP F
1,450,000.00
010
01005005
725001
CITY COUNCIL ADMIN - PENSION UAL REQUIRED MISC
4,547.02
010
01010005
725001
CITY CLERK ADMIN - PENSION UAL REQUIRED MISC
19,172.45
010
01015005
725001
CITY ATTORNEY ADMIN - PENSION UAL REQUIRED MISC
44,954.72
010
01020005
725001
CITY MANAGER ADMIN - PENSION UAL REQUIRED MISC
30,537.36
010
01020201
725001
CITY MGR PUBLIC INFO OFFICE - PENSION UAL REQUIRED MI:
8,625.80
010
0102041
725001
CITY MGR OUTREACH SERVICES - PENSION UAL REQUIRED M
5,121.64
010
01025005
725001
HUMAN RESOURCES - PENSION UAL REQUIRED MISC
44,791.85
010
01030005
725001
FINANCE ADMIN - PENSION UAL REQUIRED MISC
24,526.17
010
01030301
725001
FINANCIAL PLANNING - PENSION UAL REQUIRED MISC
21,642.40
010
01030302
725001
FINANCIAL REPORTING - PENSION UAL REQUIRED MISC
22,106.74
010
01030304
725001
PURCHASING - PENSION UAL REQUIRED MISC
15,542.29
010
0103031
725001
REVENUE SERVICES - PENSION UAL REQUIRED MISC
41,372.18
010
0103511
725001
EMERGENCY PREPAREDNESS - PENSION UAL REQUIRED MIS(
3,729.08
010
0103522
725001
POLICE IT- PENSION UAL REQUIRED MISC
25,073.56
010
01035351
725001
POLICE CHIEF - PENSION UAL REQUIRED MISC
11,346.89
010
01035352
725001
POLICE SUPPORT SERVICES - PENSION UAL REQUIRED MISC
124,032.64
010
01035353
725001
PATROL- PENSION UAL REQUIRED MISC
27,338.07
010
01035354
725001
TRAFFIC - PENSION UAL REQUIRED MISC
35,335.14
010
01035355
725001
DETECTIVES - PENSION UAL REQUIRED MISC
31,167.28
010
01035356
725001
FLEET MAINTENANCE - PENSION UAL REQUIRED MISC
5,366.28
22-68
01040005
725001
FIRE ADMINISTRATION - PENSION UAL REQUIRED MISC
18,271.39
01040402
725001
FIRE PREVENTION - PENSION UAL REQUIRED MISC
17,044.06
01040403
725001
COMM ER RESPONSE TEAM (CERT) - PENSION UAL REQUIRE[
2,387.98
01040404
725001
EMERGENCY MEDICAL SERVICES - PENSION UAL REQUIRED h
6,559.04
01040405
725001
JUNIOR LIFEGUARDS - PENSION UAL REQUIRED MISC
19,037.15
01040406
725001
LIFEGUARD OPERATIONS - PENSION UAL REQUIRED MISC
6,529.45
01050005
725001
CDD ADMIN - PENSION UAL REQUIRED MISC
26,543.14
0105041
725001
INSPECTIONS - PENSION UAL REQUIRED MISC
37,174.52
0105042
725001
PLAN CHECKS/PERMITS - PENSION UAL REQUIRED MISC
74,196.42
01050501
725001
PLANNING - PENSION UAL REQUIRED MISC
54,375.20
01050503
725001
CODE ENFORCEMENT - PENSION UAL REQUIRED MISC
11,576.09
01050505
725001
REAL PROPERTY GEN FUND - PENSION UAL REQUIRED MISC
6,687.17
01060005
725001
LIBRARY ADMIN - PENSION UAL REQUIRED MISC
25,342.58
0106021
725001
CDM BRANCH LIBRARY- PENSION UAL REQUIRED MISC
5,251.25
0106022
725001
MARINERS BRANCH LIBRARY- PENSION UAL REQUIRED MISC
16,489.25
0106023
725001
CENTRAL LIBRARY - PENSION UAL REQUIRED MISC
40,047.38
0106024
725001
BALBOA BRANCH LIBRARY - PENSION UAL REQUIRED MISC
3,277.87
01060601
725001
TECHNICAL PROCESSING - PENSION UAL REQUIRED MISC
6,480.25
01070005
725001
RECREATION ADMIN - PENSION UAL REQUIRED MISC
17,638.16
0107010
725001
PROGRAM SUPPORT - PENSION UAL REQUIRED MISC
44,121.15
0107012
725001
ADULT SPORTS - PENSION UAL REQUIRED MISC
2,052.50
0107014
725001
YOUTH PROGRAMS - PENSION UAL REQUIRED MISC
2,725.81
0107016
725001
NATURAL RESOURCES - PENSION UAL REQUIRED MISC
2,103.15
0107018
725001
PARK PATROL- PENSION UAL REQUIRED MISC
4,566.94
0107020
725001
NEWPORT COAST COMMUNITY CENTER - PENSION UAL REQi
6,736.30
0107021
725001
COMMUNITY YOUTH CENTER - PENSION UAL REQUIRED MIS,
4,053.67
0107023
725001
MARINA PARK - PENSION UAL REQUIRED MISC
10,596.70
0107024
725001
FACILITY MAINT & OPERATIONS - PENSION UAL REQUIRED IV
4,723.22
0107031
725001
OASIS - PENSION UAL REQUIRED MISC
20,533.78
0107032
725001
OASIS FITNESS CENTER - PENSION UAL REQUIRED MISC
2,603.83
0107033
725001
OASIS TRANSPORTATION - PENSION UAL REQUIRED MISC
12,449.00
01080005
725001
PUBLIC WORKS ADMIN - PENSION UAL REQUIRED MISC
36,086.78
0108011
725001
WQ/CONSERVATION/ENVIRONMENTAL - PENSION UAL REQI
15,010.55
0108012
725001
TRAFFIC & TRANSPORTATION - PENSION UAL REQUIRED MIS
47,382.37
0108031
725001
PARKS - PENSION UAL REQUIRED MISC
22,423.52
0108032
725001
TREES - PENSION UAL REQUIRED MISC
5,987.01
0108041
725001
FACILITY MAINTENANCE - PENSION UAL REQUIRED MISC
22,326.00
0108051
725001
REFUSE - PENSION UAL REQUIRED MISC
5,225.51
0108061
725001
STREETS/ASPHALT - PENSION UAL REQUIRED MISC
72,445.64
01080801
725001
ENGINEERING SERVICES - PENSION UAL REQUIRED MISC
90,612.62
01080807
725001
MOD ADMIN - PENSION UAL REQUIRED MISC
9,410.34
0109062
725001
STORM DRAINS/STREET SWEEPING - PENSION UAL REQUIRE[
21,868.42
0109063
725001
STREET LIGHT/ELECTRICAL - PENSION UAL REQUIRED MISC
5,293.86
0107015
725001
PRESCHOOL PROGRAMS - PENSION UAL REQUIRED MISC
1,326.42
01060604
725001
LITERACY SERVICES - PENSION UAL REQUIRED MISC
1,404.79
01005005
725003
CITY COUNCIL ADMIN - PENSION UAL DISCRETIONARY MISC
1,440.13
01010005
725003
CITY CLERK ADMIN - PENSION UAL DISCRETIONARY MISC
6,072.28
01015005
725003
CITY ATTORNEY ADMIN - PENSION UAL DISCRETIONARY MIS(
14,238.02
01020005
725003
CITY MANAGER ADMIN - PENSION UAL DISCRETIONARY MIS(
9,671.76
01020201
725003
CITY MGR PUBLIC INFO OFFICE - PENSION UAL DISCRETIONAL
2,731.96
0102041
725003
CITY MGR OUTREACH SERVICES - PENSION UAL DISCRETIONF
1,622.12
01025005
725003
HUMAN RESOURCES - PENSION UAL DISCRETIONARY MISC
14,186.44
01030005
725003
FINANCE ADMIN - PENSION UAL DISCRETIONARY MISC
7,767.91
01030301
725003
FINANCIAL PLANNING - PENSION UAL DISCRETIONARY MISC
6,854.56
01030302
725003
FINANCIAL REPORTING - PENSION UAL DISCRETIONARY MISC
7,001.63
01030304
725003
PURCHASING - PENSION UAL DISCRETIONARY MISC
4,922.54
0103031
725003
REVENUE SERVICES - PENSION UAL DISCRETIONARY MISC
13,103.36
22-69
0103511
725003
EMERGENCY PREPAREDNESS - PENSION UAL DISCRETIONAR)
1,181.07
0103522
725003
POLICE IT - PENSION UAL DISCRETIONARY MISC
7,941.28
01035351
725003
POLICE CHIEF - PENSION UAL DISCRETIONARY MISC
3,593.78
01035352
725003
POLICE SUPPORT SERVICES - PENSION UAL DISCRETIONARY N
39,283.51
01035353
725003
PATROL- PENSION UAL DISCRETIONARY MISC
8,658.49
01035354
725003
TRAFFIC - PENSION UAL DISCRETIONARY MISC
11,191.31
01035355
725003
DETECTIVES - PENSION UAL DISCRETIONARY MISC
9,871.27
01035356
725003
FLEET MAINTENANCE - PENSION UAL DISCRETIONARY MISC
1,699.60
01040005
725003
FIRE ADMINISTRATION - PENSION UAL DISCRETIONARY MISC
5,786.90
01040402
725003
FIRE PREVENTION - PENSION UAL DISCRETIONARY MISC
5,398.18
01040403
725003
COMM ER RESPONSE TEAM (CERT) - PENSION UAL DISCRETI(
756.32
01040404
725003
EMERGENCY MEDICAL SERVICES - PENSION UAL DISCRETION
2,077.37
01040405
725003
JUNIOR LIFEGUARDS - PENSION UAL DISCRETIONARY MISC
6,029.43
01040406
725003
LIFEGUARD OPERATIONS - PENSION UAL DISCRETIONARY MI.
2,068.00
01050005
725003
CDD ADMIN - PENSION UAL DISCRETIONARY MISC
8,406.72
0105041
725003
INSPECTIONS - PENSION UAL DISCRETIONARY MISC
11,773.88
0105042
725003
PLAN CHECKS/PERMITS - PENSION UAL DISCRETIONARY MIS(
23,499.42
01050501
725003
PLANNING - PENSION UAL DISCRETIONARY MISC
17,221.67
01050503
725003
CODE ENFORCEMENT - PENSION UAL DISCRETIONARY MISC
3,666.37
01050505
725003
REAL PROPERTY GEN FUND - PENSION UAL DISCRETIONARY 1
2,117.95
01060005
725003
LIBRARY ADMIN - PENSION UAL DISCRETIONARY MISC
8,026.48
0106021
725003
CDM BRANCH LIBRARY - PENSION UAL DISCRETIONARY MISC
1,663.17
0106022
725003
MARINERS BRANCH LIBRARY- PENSION UAL DISCRETIONARY
5,222.46
0106023
725003
CENTRAL LIBRARY - PENSION UAL DISCRETIONARY MISC
12,683.77
0106024
725003
BALBOA BRANCH LIBRARY - PENSION UAL DISCRETIONARY IV
1,038.16
01060601
725003
TECHNICAL PROCESSING - PENSION UAL DISCRETIONARY MI!
2,052.42
01070005
725003
RECREATION ADMIN - PENSION UAL DISCRETIONARY MISC
5,586.34
0107010
725003
PROGRAM SUPPORT - PENSION UAL DISCRETIONARY MISC
13,974.01
0107012
725003
ADULT SPORTS - PENSION UAL DISCRETIONARY MISC
650.07
0107014
725003
YOUTH PROGRAMS - PENSION UAL DISCRETIONARY MISC
863.32
0107016
725003
NATURAL RESOURCES - PENSION UAL DISCRETIONARY MISC
666.11
0107018
725003
PARK PATROL- PENSION UAL DISCRETIONARY MISC
1,446.44
0107020
725003
NEWPORT COAST COMMUNITY CENTER - PENSION UAL DISC
2,133.51
0107021
725003
COMMUNITY YOUTH CENTER - PENSION UAL DISCRETIONAR
1,283.87
0107023
725003
MARINA PARK - PENSION UAL DISCRETIONARY MISC
3,356.18
0107024
725003
FACILITY MAINT & OPERATIONS - PENSION UAL DISCRETION)
1,495.93
0107031
725003
OASIS - PENSION UAL DISCRETIONARY MISC
6,503.44
0107032
725003
OASIS FITNESS CENTER - PENSION UAL DISCRETIONARY MISC
824.68
0107033
725003
OASIS TRANSPORTATION - PENSION UAL DISCRETIONARY MI
3,942.84
01080005
725003
PUBLIC WORKS ADMIN - PENSION UAL DISCRETIONARY MISC
11,429.37
0108011
725003
WQ/CONSERVATION/ENVIRONMENTAL - PENSION UAL DISC
4,754.13
0108012
725003
TRAFFIC & TRANSPORTATION - PENSION UAL DISCRETIONAR
15,006.90
0108031
725003
PARKS - PENSION UAL DISCRETIONARY MISC
7,101.96
0108032
725003
TREES - PENSION UAL DISCRETIONARY MISC
1,896.20
0108041
725003
FACILITY MAINTENANCE - PENSION UAL DISCRETIONARY MIS
7,071.07
0108051
725003
REFUSE - PENSION UAL DISCRETIONARY MISC
1,655.02
0108061
725003
STREETS/ASPHALT - PENSION UAL DISCRETIONARY MISC
22,944.92
01080801
725003
ENGINEERING SERVICES - PENSION UAL DISCRETIONARY MIS
28,698.75
01080807
725003
MOD ADMIN - PENSION UAL DISCRETIONARY MISC
2,980.43
0109062
725003
STORM DRAINS/STREET SWEEPING - PENSION UAL DISCRETI(
6,926.14
0109063
725003
STREET LIGHT/ELECTRICAL - PENSION UAL DISCRETIONARY N
1,676.67
0107015
725003
PRESCHOOL PROGRAMS - PENSION UAL DISCRETIONARY MI5
420.10
01060604
725003
LITERACY SERVICES - PENSION UAL DISCRETIONARY MISC
444.92
01035351
725002
POLICE CHIEF - PENSION UAL REQUIRED SAFETY
50,342.75
01035352
725002
POLICE SUPPORT SERVICES - PENSION UAL REQUIRED SAFET)
32,726.76
01035353
725002
PATROL - PENSION UAL REQUIRED SAFETY
760,438.46
01035354
725002
TRAFFIC - PENSION UAL REQUIRED SAFETY
118,985.80
22- 70
010
01035355
725002
DETECTIVES - PENSION UAL REQUIRED SAFETY
298,764.06
010
01040005
725002
FIRE ADMINISTRATION - PENSION UAL REQUIRED SAFETY
17,232.43
010
01040401
725002
FIRE OPERATIONS - PENSION UAL REQUIRED SAFETY
794,662.87
010
01040404
725002
EMERGENCY MEDICAL SERVICES - PENSION UAL REQUIRED S
203,214.07
010
01040405
725002
JUNIOR LIFEGUARDS - PENSION UAL REQUIRED SAFETY
4,084.65
010
01040406
725002
LIFEGUARD OPERATIONS - PENSION UAL REQUIRED SAFETY
101,557.52
010
01035351
725004
POLICE CHIEF - PENSION UAL DISCRETIONARY SFTY
15,944.51
010
01035352
725004
POLICE SUPPORT SERVICES - PENSION UAL DISCRETIONARY S
10,365.19
010
01035353
725004
PATROL - PENSION UAL DISCRETIONARY SFTY
240,845.39
010
01035354
725004
TRAFFIC - PENSION UAL DISCRETIONARY SFTY
37,685.08
010
01035355
725004
DETECTIVES - PENSION UAL DISCRETIONARY SFTY
94,624.29
010
01040005
725004
FIRE ADMINISTRATION - PENSION UAL DISCRETIONARY SFTY
5,457.84
010
01040401
725004
FIRE OPERATIONS - PENSION UAL DISCRETIONARY SFTY
251,684.91
010
01040404
725004
EMERGENCY MEDICAL SERVICES - PENSION UAL DISCRETION
64,361.78
010
01040405
725004
JUNIOR LIFEGUARDS - PENSION UAL DISCRETIONARY SFTY
1,293.69
010
01040406
725004
LIFEGUARD OPERATIONS - PENSION UAL DISCRETIONARY SFl
32,165.21
Subtotal I$ 7,450,000.00
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
010
300000
GENERAL FUND - FUND BALANCE CONTROL
(7,450,000.00)
012
300000
GENERAL FUND CAPITAL PROJECTS - FUND BALANCE CONTROL
1,450,000.00
513
300000
FACILITIES FINANCING PLAN - FUND BALANCE CONTROL
1,000,000.00
Subtotal) $ (5,000,000.00)
Fund Balance Change Required
22-71
Attachment E
Redline of City Council Policies F-2 and F-28
22-72
City Council Policy F-2
(Redline)
Reserve Policy
22-73
F-2
RESERVE POLICY
PURPOSE
To establish City Council policy for the administration of Reserves defined as
fund balances in governmental funds and net working capital in proprietary
funds.
BACKGROUND
Prudent financial management dictates that some portion of the funds available
to the City be reserved for future use.
As a general budget principle concerning the use of reserves, the City Council
decides whether to appropriate funds from Reserve accounts. Even though a
project or other expenditure qualifies as a proper use of Reserves, the Council
may decide that it is more beneficial to use current year operating revenues or
bond proceeds instead, thereby retaining the Reserve funds for future use.
Reserve funds will not be spent for any function other than the specific purpose
of the Reserve account from which they are drawn without specific direction in
the annual budget or by a separate City Council action. Information regarding
Annual Budget Adoption and Administration is contained in City Council Policy
F-3.
GOVERNMENTAL FUNDS AND FUND BALANCE DEFINED
Governmental Funds including the General Fund, Special Revenue Funds,
Capital Projects Funds, Debt Service Funds, and Permanent Funds have a short-
term or current flow of financial resources, measurement focus, and basis of
accounting, and therefore exclude long-term assets and long-term liabilities. The
term Fund Balance, used to describe the resources that accumulate in these funds,
is the difference between the fund assets and fund liabilities of these funds. Fund
Balance is similar to the measure of net working capital that is used in private
sector accounting. By definition, both Fund Balance and Net Working Capital
exclude long-term assets and long-term liabilities.
PROPRIETARY FUNDS AND NET WORKING CAPITAL DEFINED
Proprietary Funds including Enterprise Funds and Internal Service Funds have
1
22-74
F-2
a long-term or economic resources measurement focus and basis of accounting,
and therefore include long-term assets and liabilities. This basis of accounting is
very similar to that used in private sector. However, instead of Retained
Earnings, the term Net Assets is used to describe the difference between fund
assets and fund liabilities. Since Net Assets include both long-term assets and
liabilities, the most comparable measure of proprietary fund financial resources
to governmental Fund Balance is Net Working Capital, which is the difference
between current assets and current liabilities. Net Working Capital, like Fund
Balance, excludes long-term assets and long-term liabilities.
GOVERNMENTAL FUND RESERVES (FUND BALANCE)
For Governmental Funds, the Governmental Accounting Standards Board
("GASB") Statement No. 54 defines five specific classifications of fund balance.
The five classifications are intended to identify whether the specific components
of fund balance are available for appropriation and are therefore "Spendable."
The classifications also are intended to identify the extent to which fund balance
is constrained by special restrictions, if any. Applicable only to governmental
funds, the five classifications of fund balance are as follows:
CLASSIFICATIONS NATURE OF RESTRICTION
Non -spendable Cannot be readily converted to cash
Restricted Externally imposed restrictions
Committed City Council imposed commitment
Assigned City Manager assigned purpose/intent
Unassigned Residual balance not otherwise
restricted
A. Non -spendable fund balance: That portion of fund balance that includes
amounts that are either (a) not in a spendable form, or (b) legally or
contractually required to be maintained intact. Examples of Non -spendable
fund balance include:
1. Reserve for Inventories: The value of inventories purchased by the City
but not yet issued to the operating Departments is reflected in this
account.
2
22-75
F-2
2. Reserve for Lona Term Receivables and Advances: This Reserve is used
toidentify and segregate that portion of the City's financial assets which
are not due to be received for an extended period, so are not available
for appropriation during the budget year.
3. Reserve for Prepaid Assets: This reserve represents resources that have
been paid to another entity in advance of the accounting period in which
the resource is deducted from fund balance. A common example is an
insurance premium, which is typically payable in advance of the
coverage period.
Although prepaid assets have yet to be deducted from fund balance,
they are no longer available for appropriation.
4. Reserve for Permanent Endowment - Bay Dredging: The endowment
specifies that the principal amount will not be depleted and represents
the asset amounts to be held in the Bay Dredging Fund.
5. Reserve for Permanent Endowment - Ackerman Fund: The
endowment specifies that the principal amount will not be depleted and
represents the asset amount to be held in the Ackerman Fund.
B. Restricted fund balance: The portion of fund balance that reflects constraints
placed on the use of resources (other than non -spendable items) that are either
(a) externally imposed by creditors, grantors, contributors, or laws or
regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislation. Examples of restricted fund
balance are:
1. Reserve for Debt Service: Funds are placed in this Reserve at the time
debt is issued. The provisions governing the Reserve, if established, are
in the Bond Indenture and the Reserve itself is typically controlled by the
Trustee.
2. Affordable Housing: A principal provision of the Newport Beach
Housing Element requires developers to provide housing units for lower
income households, the number of which is to be negotiated for each
development project. In lieu of constructing affordable housing,
developers have paid into this reserve which is used at the City Council's
discretion to provide alternate methods for the delivery of affordable
3
22-76
F-2
housing for lower income households.
3. Park In Lieu: Per Newport Beach Municipal Code (NBMCJ Chapter 19.52
and California Government Code Section 664777 (The 1975 "Quimby
Act"), a dedication of land or payment of fees for park or recreational
purposes in conjunction with residential development is required. The
fees collected can only be used for specific park or recreation purposes
as outlined in NBMC Sections-19.52.030 and 19.52.070.
4. Upper Newport Bay Restoration Reserve: This reserve is the repository
for funds mandated by SB573, as well as special fees charged to permit
holders as an alternative to meeting certain specified mitigation criteria.
In addition to the mitigation fees, ten percent (10%) of Beacon Bay lease
revenue is placed in this Reserve. Funds in the Reserve are restricted for
Upper Newport Bay restoration projects.
5. Permanent Endowment for Bay Dredging: The endowment also
specifies that the interest earnings on the principal amount can only be
used for dredging projects in the Newport Bay.
6. Permanent Endowment for Ackerman Fund: The endowment also
specifies that the interest earnings on the principal amount can only be
used for scholarships provided by the City and high-tech library
equipment.
7. Oceanfront Encroachment Reserve: In the early 1990's, it was discovered
by survey that improvements to several ocean front parcels were
encroaching onto the public beach. The encroachment was relatively
minor. The negotiated solution was for the property owners to pay a
permit fee each year to the City. Revenue thus generated may only be
used for ocean front restoration projects and incidental costs of
improvements and maintenance to enhance public access and use of
ocean beaches as approved by the City Council. This Reserve is the
repository for those funds. City Couneil Peliey L-QAppendix C of
NBMC Title 21 (Local Coastal Program Implementation Plan) contains
additional background and details about the encroachment issue. The
external restriction on this balance is imposed by the Local Coastal Plan
Program (LCP).
C. Committed fund balance: That portion of a fund balance that includes
11
22-77
F-2
amounts that can only be used for specific purposes pursuant to constraints
imposed by formal action by the government's highest level of decision
making authority, and remain binding unless removed in the same manner.
The City considers a resolution to constitute a formal action for the purposes
of establishing committed fund balance. The action to constrain resources
must occur within the fiscal reporting period; however, the amount can be
determined subsequently. City Council imposed Commitments are as follows:
1. Facilities Financial Planning (FFP) dProgram: In conjunction with
the City'sFacilities Financial Plan, a sinking fund has been established to
amortize the cost of critical City facilities such as, but not limited to, the
Civic Center, Police Department buildings, Fire Stations, Library
Branches, and other Facility Improvement Projects.
The Facilities Financial Planning Program establishes a level charge to
the General Fund that will perpetually replenish the cash flows
necessary to finance the construction of critical City facilities. This plan
will be updated annually as part of the budget process, or as conditions
change. The City shag strive to maintain fund balance i the Fact;,-;,,�
Finaneial Planningsefye at __ level equal t of reateF th.,,-, the
annual debt servie` on existing � ,bl; p ., : ; � ,,: , s Specific
reauirements for annual funding and minimum reserve balance for the
FFP Program can be found in City Council Policy F-28.
The eligible uses of this reserve include the cash funding of public facility
improvements or the servicing of related debt.
2. Off Street Parkin: Per NBMC Section 12.44.025 the City Council may direct
revenues into the Off -Street Parking Facilities Fund for purposes of the
acquisition, development, and improvement of off street parking facilities,
and for any expenditures necessary or convenient to accomplish such
purposes.
3. In Lieu Parking: Per NBMC Section 12.44.125 the City requires commercial
businesses to provide adequate off-street parking or where this is not
possible, businesses are afforded the opportunity to pay an annual fee and
use parking spaces in a municipal lot, providing such a lot is located within
specified proximity to the business. These funds can only be used to
provide additional parking.
5
22-78
F-2
4. Neighborhood Enhancement - A: Funds previously accumulated to
Neighborhood Enhancement Area "A" pursuant to a prior version of
NBMC Section 12.44.027 shall continue to be used only for the purpose of
enhancing and supplementing services to the West Newport area. Both the
nature of the supplemental services and the definition of the area served are
set forth in NBMC Section 12.44.027.
5. Neighborhood Enhancement - B: Funds previously accumulated to
Neighborhood Enhancement Area "B" pursuant to a prior version of
NBMC Section 12.44.027 shall continue to be used only for the purpose of
enhancing and supplementing services in the Balboa Peninsula. Both the
nature of the supplemental services and the definition of the area served are
set forth in NBMC Section 12.44.027.
6. Cable Franchise: Pursuant to the provisions of the Newport Beach
Municipal Code, Title 5, Business Licenses & Regulations, Chapter 5.44, in
return for the use of the City's streets and public ways for the purpose of
installing, operating, maintaining, or reconstructing a cable system to
provide cable service, fees are collected by the City from cable providers.
Those fees are to be used by the City for support of Public, Education, and
Government access programming only.
7. Oil and Gas Reserve: T4-,e-These funds generated by an annual $40,000
whiehamount i-s-being set aside from #fie -oil and gas field production
revenues i-sare to be used to fund abandonedment of wells and facilities as
they go out of service.
8. Capital Reappropriation: This reserve repFescts—ar admin str-at �
pr-eeedu -e that recognizes a portion of fund balance that is not readily
available to fund new endear appropriations because it has been
reappropriated through the budget adoption process or amendment
process for programs or projects authorized in a prior fiscal year that are not
yet complete.
D. Assigned fund balance: That portion of a fund balance that includes
amounts that are constrained by the City's intent to be used for specific
purposes but that are not restricted or committed. This policy hereby
delegates the authority to the City Manager or designee to modify or create
new assignments of fund balance. Constraints imposed on the use of
0
22-79
F-2
assigned amounts may be changed by the City Manager or his designee.
Appropriations of balances are subject to Council Policy F-3 concerning
budget adoption and administration.
E. Unassigned fund balance:
I. Contingency Reserve: The Contingency Reserve shall have a target
balance of twenty five percent (25%) of General Fund "Operating
Budget" as originally adopted. Operating Budget for this purpose shall
include current expenditure appropriations and shall exclude Capital
Improvement Projects, Transfers Out, and additional discretionary
payments to the City's unfunded pension liability. Appropriation and/
or access to these funds are generally reserved for emergency or
unforeseen situations but may be accessed by Council by simple budget
appropriation. Examples may include but are not limited to the
following:
a. A catastrophic loss of critical infrastructure.
b. A State or Federally declared state of emergency.
C. Any settlement arising from a claim or judgment.
d. Deviation from budgeted revenue projections.
e. Any action by another government that eliminates or shifts revenues
from the City.
f. Inability of the City to meet its debt service obligations in any given
year.
g. Other circumstances deemed necessary by City Council to meet the
claims and obligations of the City.
Should the Contingency Reserve be used, the City Manager shall present
a plan to City Council to replenish the reserve within five years.
2. Residual Fund Balance: The residual portion of available fund balance that
is not otherwise restricted, committed, or assigned and is above and
beyond the Contingency Reserve target reserve balance.
7
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F-2
PROPRIETARY FUND RESERVES (NET WORKING CAPITAL)
In the case of Proprietary Funds (Enterprise and Internal Service Funds),
Generally Accepted Accounting Principles ("GAAP") do not permit the reporting
of reserves on the face of City financial statements. However, this does not
preclude the City from setting policies to accumulate financial resources for
prudent financial management of its proprietary fund operations. Since
proprietary funds may include both long-term capital assets and long-term
liabilities, the most comparable measure of liquid financial resources that is
similar to fund balance in proprietary funds is net working capital, which is the
difference between current assets and current liabilities. For all further references
to reserves in Proprietary Funds, Net Working Capital is the intended meaning.
A. Water Enterprise Fund
1. Stabilization and Contingency Reserve: This Reserve is used to provide
sufficient funds to support seasonal variations in cash flows, and in more
extreme conditions to maintain operations for a reasonable period of time
so the City may reorganize in an orderly manner or effectuate a rate
increase to offset sustained cost increases. The intent of the Reserve is to
provide funds to offset cost increases that are projected to be short-lived,
thereby partially eliminating the volatility in annual rate adjustments. It is
not intended to offset ongoing, long-term pricing structure changes. The
target level of this reserve is fifty percent (50%) of the annual operating
budget. This reserve level is intended to provide a reorganization period
of 6 months with zero income or 24 months at a twenty-five percent (25%)
loss rate. The City Council must approve the use of these funds, based on
City Manager recommendation. Funds collected in excess of the
Stabilization reserve target would be available to offset future rate
adjustments, while extended reserve shortfalls would be recovered from
future rate increases. Should catastrophic losses to the infrastructure
system occur, the Stabilization and Contingency Reserve may be called
upon to avoid disruption to water distribution.
2. Infrastructure Replacement Funding Policy: This funding policy is
intended to be a temporary repository for cash flows associated with
the funding of infrastructure replacement projects provided by the Water
Master Plan. The contribution rate is intended to level -amortize the
cost of infrastructure replacement projects over a long period. The annual
funding rate of the Water Master Plan is targeted at an amount that, when
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combined with prior or future year contributions, is sufficient to provide
for the eventual replacement of assets as scheduled in the plan. This
contribution policy is based on the funding requirements of the most
current Water Master Plan. There are no minimum or maximum balances
contemplated by this funding policy. However, the contribution level
should be reviewed periodically or as major updates to the Water Master
Plan occur. Annual funding is contingent on many factors and may
ultimately involve a combined strategy of cash funding and debt issuance
with the intent to normalize the burden on Water customer rates.
B. Wastewater Enterprise Fund
1. Stabilization and Contingency Reserve: This Reserve is used to provide
sufficient funds to support seasonal variations in cash flows, and in more
extreme conditions to maintain operations for a reasonable period of time
so the City may reorganize in an orderly manner or effectuate a rate
increase to offset sustained cost increases. The intent of the Reserve is to
provide funds to offset cost increases that are projected to be short-lived,
thereby partially eliminating the volatility in annual rate adjustments. It is
not intended to offset ongoing, long-term pricing structure changes. The
target level of this reserve is fifty percent (50%) of the annual operating
budget. This reserve level is intended to provide a reorganization period of
6 months with zero income or 24 months at a twenty-five percent (25%) loss
rate. The City Council must approve use of these funds, based on City
Manager recommendation. Funds collected in excess of the Stabilization
reserve target would be available to offset future rate adjustments, while
extended reserve shortfalls would be recovered from future rate increases.
Should catastrophic losses to the infrastructure system occur, the
Stabilization and Contingency Reserve may be called upon to avoid
disruption to wastewater service.
2. Infrastructure Replacement Funding Policy: This funding policy is
intended to be a temporary repository for cash flows associated with
the funding of infrastructure replacement projects provided by the
Wastewater Master Plan. The contribution rate is intended to level -
amortize the cost of infrastructure replacement projects over a long period
of time. The annual funding rate of the Wastewater Master Plan is targeted
at an amount that, when combined with prior or future year contributions,
is sufficient to provide for the eventual replacement of assets as scheduled
in the plan. This contribution policy should be updated periodically based
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on the most current Wastewater Master Plan. There are no minimum or
maximum balances contemplated by this funding policy. However, the
contribution level should be reviewed periodically or as major updates to
the Wastewater Master Plan occur. Annual funding is contingent on many
factors and may ultimately involve a combined strategy of cash funding
and debt issuance with the intent to normalize the burden on Wastewater
customer rates.
C. Internal Service Funds Background.
Internal Service Funds are used to centrally manage and account for specific
program activity in a centralized cost center. Their revenue generally comes
from internal charges to departmental operating budgets rather than external
revenue sources. They have several functions.
--They work well in normalizing departmental budgeting for programs that
have life -cycles greater than one year, thereby facilitating level budgeting for
expenditures that will, by their nature, be erratic from year to year. This also
facilitates easier identification of long term trends.
--They act as a strategic savings plan for long-term assets and liabilities.
--From an analytical standpoint, they enable appropriate distribution of city-
wide costs to individual departments, thereby more readily establishing true
costs of various operations.
Since departmental charges to the internal service fund duplicate the ultimate
expenditure from the internal service fund, they are eliminated when
consolidating entity -wide totals.
The measurement criteria, cash flow patterns, funding horizon and
acceptable funding levels are unique to each program being funded. Policy
regarding target balance and/ or contribution policy, gain/loss
amortization assumptions, source data, and governance for each of the
City's Internal Service Funds is set forth as follows:
1. For all Internal Service Funds: The Finance Director may transfer part or all
of any unencumbered fund balance between the Internal Service Funds
provided that the withdrawal of funds from the transferred fund would not
cause insufficient reserve levels or insufficient resources to carry out its
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intended purpose. This action is appropriate when the decline in cash balance
in any fund is precipitated by an off -trend non -recurring event. The Finance
Director will make such recommendations as part of the annual budget
adoption or through separate Council action.
2. Equipment Maintenance Fund and Equipment Replacement Fund: The
Equipment Maintenance and Replacement Funds receive operating money
from the Departments to provide equipment maintenance and to fund the
regular replacement of major pieces of equipment (mostly vehicles) at their
economic obsolescence.
a. Equipment Maintenance Fund: The Equipment Maintenance Fund acts
solely as a cost allocation center (vs. a pre -funding center) and is funded
on a pay-as-you-go basis by departmental maintenance charges by vehicle
type and usage requirement. Because of this limited function, the target
year-end balance is zero.
Contribution rates (departmental charges) are set to include the direct costs
associated with maintaining the City vehicle fleet, including fleet
maintenance employee salaries and benefits, operating expenses, and
maintenance related capital outlay. Administrative overhead and
maintenance facility improvements and replacement costs are to be
provided outside of this cost unit. Governance is achieved through annual
management adjustment of contribution rates on the basis of maintenance
cost by vehicle and distribution of costs based on fleet use by department.
b. Equipment Replacement Fund: Operating Departments are charged
annual amounts sufficient to accumulate funds for the replacement of
vehicles, communications equipment, parking equipment, and other
equipment replacement determined to be appropriate by the Finance
Director. The City Manager recommends annual rate adjustments as
part of the budget preparation process. These adjustments are based
on pricing, future replacement schedules, and other variables.
The age and needs of the equipment inventory vary from year to year.
Therefore, the year-end fund balance will fluctuate in direct correlation to
accumulated depreciation. In general, it will increase in the years
preceding the scheduled replacement of relatively large percentage of the
equipment, on a dollar value basis. However, rising equipment costs,
dissimilar future needs, replacing equipment faster than their expected
life, or maintaining equipment longer than its expected life all contribute
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to variation from the projected schedule.
Target funding levels shall be determined by the Finance Director after
considering the age, expected life, and cash flow anticipated by the
replacement equipment being funded. If departmental replacement
charges for equipment prove to be excessive or insufficient with regard to
this target funding level, new rates established during the next budget
cycle will be adjusted with a view toward bringing the balance back to the
target level .
3. Insurance Reserve Funds: The Insurance Reserve funds account for the
activities of general liability-a+id workers' compensation, property, and other
insurance claims. General liability and workers' compensation claims are
self -insured up to an established amount, with excess insurance policies
procured to address larger claims. Property and other insurance policies are
procured with appropriate deductibles, and related claims payments are not
funded from the City s self-insurance program.
Background.
The City employs an actuary to estimate the liabilities associated with the
general liability and workers compensation activities. The costs typically
associated with these programs include claims administration, legal
defense, insurance premiums, self -insured retention, and the
establishment of appropriate loss reserves including "incurred -but -not
reported" (IBNR) claims. Ina prescribed measurement methodology, the
Actuary estimates the liabilities in conformity with Generally Accepted
Accounting Principles (GAAP).
The Actuary refers to this measurement level in their report as the "Expected
Level." However, because actuarial estimates are subject to significant
uncertainties, actuaries typically recommend that a target funding level be set
at an amount in excess of expected liability as a margin to cover contingencies.
A typical target funding level would be set to obtain a specified confidence
level (the percent chance that resources set -aside will be sufficient to cover
existing claims).
Full funding of the Actuary's "Target Funding Level" establishes a seventy-
five percent (75%) confidence there will be sufficient resources (including
projected interest) to pay the full amount of existing claims without future
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contributions. Funding at the "Expected Level" produces a confidence level of
only fifty percent to sixty-five percent (50 %-65 %). Therefore, the target
funding of insurance reserves should exceed the "Expected Level" to account
for adverse estimate deviation.
Policy & Practice.
The City should target funding of its risk management obligations at not less
than the Expected Level, described above; and not more than an amount
sufficient to establish an seventy f veeig_hty percent (7580%) Confidence
Level. Actuarial gains and losses should be reeover^a a .Tllin a it
basis while actuarial gains should amortized through rates over an
appropriate period of time r-elling 5 ,ear- basis.As part of the operating
budget, each department will be charged a rate equal to its proportionate
share of the total "revenue" required to fund the Insurance Reserve Fund at
this level.
To lessen the impact of short-term annual rate change fluctuation, City
management may implement one-time fund transfers (rather than
department rate increases) when funding shortfalls appear to be due to
unusually sharp and non -recurring factors. Excess reserves in other areas may
be transferred to the internal service fund in these instances but such transfers
should not exceed the funding necessary to reach an seventy fiveeig_hty
percent (7580%) confidence level interval.
4. Compensated Absences Fund:
Background.
The primary purpose of flex leave, vacation leave, and sick leave is to provide
compensated time off as appropriate and approved. However, under certain
circumstances, typically at separation from service, some employees have the
option of receiving cash -out payments for some accumulated leave balances.
The Compensated Absences Fund is utilized primarily as a budget smoothing
technique for any such leave bank liquidations. The primary purpose of the
Compensated Absences Fund is to maintain a balance sufficient to facilitate
this smoothing.
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Policy and Practice.
The contribution rate will be set to cover estimated annual cash flows based
on a three-year trailing average.
The minimum cash reserve should not fall below that three-year average. The
maximum cash reserve should not exceed fifty percent (50%) of the long term
liability. The target cash reserve shall be the median difference between the
minimum and maximum figures.
Each department will make contributions to the Compensated Absences
Fund through its operating budget as a specified percentage of salary. The
Finance Director will review and recommend adjustments to the percentage
of salary required during the annual budget development process. This
percentage will be set so as to maintain the reserve within the parameters
established above.
5. Post Retirement Funding Policies:
a. Pension Funding:
(i) California Public Employees Retirement System (Ca1PERS): The City's
principal Defined Benefit Pension program is provided through
contract with Ca1PERS. The City's contributions to the plan include an
actuarially determined employer contribution that fluctuates each year
based on an annual actuarial plan valuation. This variable rate employer
contribution includes the normal cost of providing the contracted
benefits plus or minus an amortization of plan changes and net actuarial
gains and losses since the last valuation period.
It is the City's policy to make contributions to the plan equaling at least
one hundred percent (100%) of the actuarially required determined
contribution Beease-tie-City pays the entire
obligation at the ra of eeh . � ��. Any unfunded actuarial
liability (UAL) is amortized and paid in accordance with the actuary's
funding recommendations. The City will strive to maintain its UAL
within a range that is considered acceptable to actuarial standards. The
City Council shall consider increasing the annual Ca1PERS contribution
should the UAL status fall below acceptable actuarial standards.
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(ii) Laborer's International Union of North America (LIUNA): The City
provides funds to support a supplemental pension plan for some
employee associations through contract with LIUNA. This is funded
a-tvia employee contributions of a fixed percentage of total
compensation on a pay-as-you-go basis. The City is not contractually
required to guarantee the level of the ultimate LIUNA benefit to retirees,
nor does it do so. Therefore, the City's liability for this program is fully
funded each year.
b. Other Post Employment Benefits (OPEB Funding):
Background.
The City's OPEB funding obligations consists of two retiree medical plans.
New Plan. Effective January 2006, the City and its employee associations
agreed to major changes to the Post Employment Healthcare Plan. New
employees and all current employees participate in a program that requires
certain defined employee and employer contributions while the employee
is in active service. However, once the contributions have been made to the
employee's account, the City has transferred a substantial portion of the
funding risk to the employee.
Old Plan. Eligible employees who retired prior to the "New Plan" and
certain active employees were eligible to continue to receive post -retirement
medical benefits (a defined benefit plan). The cost was divided among the
City, current employees, and retirees. In the past, this program was largely
funded on a pay-as-you-go basis, so there was a significant unfunded
liability. Recognizing this problem, the City began contributing to this
obligation in 2001. In 2008, these assets were placed in a pre -funding trust.
The City's intention is to amortize the remaining unfunded liability within
20 years.
Policy & Practice.
New Plan. Consistent with agreements between the City and Employee
Associations, the new defined contribution plan will be one hundred
percent (100%) funded, on an ongoing basis, as part of the annual budget
process. Funds to cover this expenditure will be contained within the salary
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section of each department's annual operating budget.
Old Plan. The City's policy is to pre fund the explicit (cash subsidy) portion
of the Actuarial Accrued Liability (AAL) of the remnants of the old plan
over a 20-year amortization period, or less. This amount will be based on
the Annual Required Contribution (ARC) determined by a biennial
actuarial review, subject to review and analysis by the City. The City will
strive to maintain a funded status that will be within a range that is
considered acceptable to actuarial standards. The City Council shall
consider increasing the annual OPEB contribution should the funded status
fall below acceptable actuarial standards.
Adopted - January 24, 1994
Amended - April 10,1995
Amended - April 27,1998
Amended - March 14, 2000
Amended - May 8, 2001
Amended - April 23, 2002
Amended - April 13, 2004
Amended - September 15, 2008
Amended - November 12, 2008
Amended - May 24, 2011
Amended - September 27, 2011
Amended - May 14, 2013
Amended - June 10, 2014
Amended - May 12, 2015
Amended - September 25, 2018
Amended - Tune 14.2022
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City Council Policy F-28
(Redline)
Facilities and Harbor and Beaches Financial Planning Programs
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FACILITIES AND HARBOR AND BEACHES FINANCIAL PLANNING PROGRAMS
PURPOSE
To establish the policy for the administration of the City of Newport Beach's ("City")
Facilities and Harbor and Beaches Financial Planning Programs ("Programs").
DISCUSSION
In addition to the annual Capital Improvement Program ("CIP"), the City has established
a long-term plan for major renovation or replacement of aging facilities and installation
of new infrastructure. 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 ensure that long-term programs addressing large, non -recurring projects for
replacement of facilities is part of the budget process each year.
B. To ensure that development fees and 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 to the extent practicable so as to
minimize the peaks and valleys in General Fund support levels for elements of the
Programs.
D. To ensure that projects are properly prioritized and scheduled, taking into
consideration the relative age, condition, and functional viability of current
facilities; pairing of projects' implementation where prudent; and cost
implications of immediate projects for the overall long-term Programs.
E. Spreading or matching the costs of facilities over the useful life of such facilities
should be a goal of all long-term capital project financings. Debt financing that
extends beyond the useful life of the assets the debt was borrowed to finance
should be avoided.
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SOURCES AND USES OF FUNDS
Funding for the Programs comes from development fees and 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, incremental rent or fees originating from harbor
activity received by the City, net proceeds of Certificates of Participation or other
financing instruments, and investment earnings on temporarily idle funds.
Funds for both Programs are used for actual site acquisition, design, construction, and
directly related costs, as well as debt service expenses.
POLICY AND PROCEDURE
A. In advance of the budget process, staff shall prepare an update of the Facilities
Financial Planning Tool and the Harbor and Beaches Capital Financial Plan for
review, modification, and approval by the City Council.
B. If requested by the City Council, the Finance Committee will review the fiscal
impacts associated with, and recommend the most advantageous methods to fund
the high -priority projects in, the Facilities Financial Planning Tool and the Harbor
and Beaches Capital Financial Plan. The City Manager will consider these
recommendations in the preparation and presentation of the City Manager's
annual budget to the City Council.
C. 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 credited to the Facilities Financial
Planning Reserve fund.
D. 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 and the Harbor and Beaches Capital Financial Plan
E. General Fund contributions to the Facilities Financial Plan shall generally not be
less than three percent (3%) of the total General Fund Revenue Budget or the total
annual debt service on outstanding Facilities Financial Plan -related debt,
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whichever is greater. However, if there is a shortfall in General Fund revenue due
to a decline in economic activity or other unexpected circumstances and it is
necessary to reduce expenditures, General Fund contributions to the Facilities
Financial Planning Program and the Harbor and Beaehes Capital Finaneial Pla
can be temporarily reduced to under the three percent (3%) threshold.
F. General Fund contributions to the Harbor and Beaches Capital Financial Plan shall
be sufficient so as to adequately fund the identified long-term capital needs
included in the Plan and shall be incrementally increased to account for inflation.
G. The financing duration for any borrowed funds shall not exceed thirty (30) years
or the projected life of the new facility, whichever is less.
H. Transfers from the General Fund to the Facilities Financial Plan Fund for debt
service expenditures shall be separately shown in the City's budget so as to
highlight the portion of the transfer funding debt service.
I. The Citv shall strive to maintain fund balance in the Facilities Financial Plan Fund
at a level equal to or greater than the maximum annual debt service on existing
obligations.
J. The Facilities Financial Planning Tool and Harbor and Beaches Capital Financial
Plan 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 - June 9, 2015
Amended - February 12, 2019
Amended - June 14, 2022
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ATTACHMENT F
RESOLUTION NO. 2022-43
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, AMENDING CITY
COUNCIL POLICY F-2, RESERVE POLICY, AND CITY
COUNCIL POLICY F-28, FACILITIES AND HARBOR AND
BEACHES FINANCIAL PLANNING PROGRAMS
WHEREAS, the City of Newport Beach ("City") is governed, in part, by its Charter,
Municipal Code, and adopted City Council Policies;
WHEREAS, the City Council has a long and established history of being good
guardians and stewards of the public's money;
WHEREAS, appropriations, expenditures and other budgetary matters are a
primary concern of the City Council;
WHEREAS, the City Council has adopted various policies regarding financial
matters;
WHEREAS, the City Council adopted City Council Policy F-2 on January 24, 1994,
to administer reserve funds in accordance with governmental accounting standards and
prudent financial management practices;
WHEREAS, the City Council adopted City Council Policy F-28 on August 11, 2009,
to formalize the objectives, parameters, and procedures for the management of City
Facilities funded by the general Fund with a primarily emphasis on financing and
scheduling matters;
WHEREAS, the Finance Committee is charged with a variety of tasks including,
but not limited to, reviewing and monitoring events and issues that may affect the financial
status of the City and making recommendations to the City Council regarding
amendments to financial policies;
WHEREAS, the Finance Committee recently reviewed the adequacy of the annual
contributions to the City's internal service funds and savings programs for facilities,
vehicle, and equipment replacement and maintenance;
WHEREAS, the Finance Committee has recommended changes to those funding
programs as part of the fiscal year 2022-23 proposed budget, which necessitated
changes to City Council Policies F-2 and F-28, attached hereto as Exhibits 1 and 2;
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Resolution No. 2022-
Page 2 of 3
WHEREAS, the Finance Director / Treasurer recommends other minor changes
to these policies for clarity, consistency, or to conform to current governmental accounting
guidance; and
WHEREAS, the City Manager has reviewed the recommended revisions to the
policies suggested by the Finance Committee and Finance Director / Treasurer and
recommends that the City Council amend these City Council policies.
NOW, THEREFORE, the City Council of the City of Newport Beach hereby
resolves as follows:
Section 1: The City Council hereby approves and adopts City Council Policies
F-2 and F-28, attached hereto as Exhibits 1 and 2, and incorporated herein by this
reference.
Section 2: The City Council hereby repeals all prior versions of City Council
Policies F-2 and F-28.
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: 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 or phrases be declared invalid or
unconstitutional.
Section 5: The City Council finds the adoption of this resolution 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.
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Resolution No. 2022-
Page 3 of 3
Section 6: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 14th day of June, 2022.
Kevin Muldoon
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
,"A� C.
ar n C. Harp
City Attorney
Attachments: Exhibit 1 —Amended City Council Policy F-2
Exhibit 2 — Amended City Council Policy F-28
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Exhibit 1
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F-2
RESERVE POLICY
PURPOSE
To establish City Council policy for the administration of Reserves defined as
fund balances in governmental funds and net working capital in proprietary
funds.
BACKGROUND
Prudent financial management dictates that some portion of the funds available
to the City be reserved for future use.
As a general budget principle concerning the use of reserves, the City Council
decides whether to appropriate funds from Reserve accounts. Even though a
project or other expenditure qualifies as a proper use of Reserves, the Council
may decide that it is more beneficial to use current year operating revenues or
bond proceeds instead, thereby retaining the Reserve funds for future use.
Reserve funds will not be spent for any function other than the specific purpose
of the Reserve account from which they are drawn without specific direction in
the annual budget or by a separate City Council action. Information regarding
Annual Budget Adoption and Administration is contained in City Council Policy
F-3.
GOVERNMENTAL FUNDS AND FUND BALANCE DEFINED
Governmental Funds including the General Fund, Special Revenue Funds,
Capital Projects Funds, Debt Service Funds, and Permanent Funds have a short-
term or current flow of financial resources, measurement focus, and basis of
accounting, and therefore exclude long-term assets and long-term liabilities. The
term Fund Balance, used to describe the resources that accumulate in these funds,
is the difference between the fund assets and fund liabilities of these funds. Fund
Balance is similar to the measure of net working capital that is used in private
sector accounting. By definition, both Fund Balance and Net Working Capital
exclude long-term assets and long-term liabilities.
PROPRIETARY FUNDS AND NET WORKING CAPITAL DEFINED
Proprietary Funds including Enterprise Funds and Internal Service Funds have
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F-2
a long-term or economic resources measurement focus and basis of accounting,
and therefore include long-term assets and liabilities. This basis of accounting is
very similar to that used in private sector. However, instead of Retained
Earnings, the term Net Assets is used to describe the difference between fund
assets and fund liabilities. Since Net Assets include both long-term assets and
liabilities, the most comparable measure of proprietary fund financial resources
to governmental Fund Balance is Net Working Capital, which is the difference
between current assets and current liabilities. Net Working Capital, like Fund
Balance, excludes long-term assets and long-term liabilities.
GOVERNMENTAL FUND RESERVES (FUND BALANCE)
For Governmental Funds, the Governmental Accounting Standards Board
("GASB") Statement No. 54 defines five specific classifications of fund balance.
The five classifications are intended to identify whether the specific components
of fund balance are available for appropriation and are therefore "Spendable."
The classifications also are intended to identify the extent to which fund balance
is constrained by special restrictions, if any. Applicable only to governmental
funds, the five classifications of fund balance are as follows:
CLASSIFICATIONS NATURE OF RESTRICTION
Non -spendable Cannot be readily converted to cash
Restricted Externally imposed restrictions
Committed City Council imposed commitment
Assigned City Manager assigned purpose/ intent
Unassigned Residual balance not otherwise
restricted
A. Non -spendable fund balance: That portion of fund balance that includes
amounts that are either (a) not in a spendable form, or (b) legally or
contractually required to be maintained intact. Examples of Non -spendable
fund balance include:
1. Reserve for Inventories: The value of inventories purchased by the City
but not yet issued to the operating Departments is reflected in this
account.
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2. Reserve for Long Term Receivables and Advances: This Reserve is used
ioidentify and segregate that portion of the City's financial assets which
are not due to be received for an extended period, so are not available
for appropriation during the budget year.
3. Reserve for Prepaid Assets: This reserve represents resources that have
been paid to another entity in advance of the accounting period in which
the resource is deducted from fund balance. A common example is an
insurance premium, which is typically payable in advance of the
coverage period.
Although prepaid assets have yet to be deducted from fund balance,
they are no longer available for appropriation.
4. Reserve for Permanent Endowment - Bay Dredging: The endowment
specifies that the principal amount will not be depleted and represents
the asset amounts to be held in the Bay Dredging Fund.
5. Reserve for Permanent Endowment - Ackerman Fund: The
endowment specifies that the principal amount will not be depleted and
represents the asset amount to be held in the Ackerman Fund.
B. Restricted fund balance: The portion of fund balance that reflects constraints
placed on the use of resources (other than non -spendable items) that are either
(a) externally imposed by creditors, grantors, contributors, or laws or
regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislation. Examples of restricted fund
balance are:
1. Reserve for Debt Service: Funds are placed in this Reserve at the time
debt is issued. The provisions governing the Reserve, if established, are
in the Bond Indenture and the Reserve itself is typically controlled by the
Trustee.
2. Affordable Housing: A principal provision of the Newport Beach
Housing Element requires developers to provide housing units for lower
income households, the number of which is to be negotiated for each
development project. In lieu of constructing affordable housing,
developers have paid into this reserve which is used at the City Council's
discretion to provide alternate methods for the delivery of affordable
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housing for lower income households.
3. Park In Lieu: Per Newport Beach Municipal Code (NBMC) Chapter 19.52
and California Government Code Section 664777 (The 1975 "Quimby
Act"), a dedication of land or payment of fees for park or recreational
purposes in conjunction with residential development is required. The
fees collected can only be used for specific park or recreation purposes
as outlined in NBMC Sections 19.52.030 and 19.52.070.
4. Upper Newport Bay Restoration Reserve: This reserve is the repository
for funds mandated by SB573, as well as special fees charged to permit
holders as an alternative to meeting certain specified mitigation criteria.
In addition to the mitigation fees, ten percent (10%) of Beacon Bay lease
revenue is placedin this Reserve. Funds in the Reserve are restricted for
Upper Newport Bay restoration projects.
5. Permanent Endowment for Bay Dredgiin: The endowment also
specifies that the interest earnings on the principal amount can only be
used for dredging projects in the Newport Bay.
6. Permanent Endowment for Ackerman Fund: The endowment also
specifies that the interest earnings on the principal amount can only be
used for scholarships provided by the City and high-tech library
equipment.
7. Oceanfront Encroachment Reserve: In the early 1990's, it was discovered
by survey that improvements to several ocean front parcels were
encroaching onto the public beach. The encroachment was relatively
minor. The negotiated solution was for the property owners to pay a
permit fee each year to the City. Revenue thus generated may only be
used for ocean front restoration projects and incidental costs of
improvements and maintenance to enhance public access and use of
ocean beaches as approved by the City Council. This Reserve is the
repository for those funds. Appendix C of NBMC Title 21 (Local Coastal
Program Implementation Plan) contains additional background and
details about the encroachment issue. The external restriction on this
balance is imposed by the Local Coastal Program (LCP).
C. Committed fund balance: That portion of a fund balance that includes
amounts that can only be used for specific purposes pursuant to constraints
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imposed by formal action by the government's highest level of decision
making authority, and remain binding unless removed in the same manner.
The City considers a resolution to constitute a formal action for the purposes
of establishing committed fund balance. The action to constrain resources
must occur within the fiscal reporting period; however, the amount can be
determined subsequently. City Council imposed Commitments are as follows:
1. Facilities Financial Planning{_ FFP) Program: In conjunction with the Cly's
Facilities Financial Plan, a sinking fund has been established to amortize
the cost of critical City facilities such as, but not limited to, the Civic
Center, Police Department buildings, Fire Stations, Library Branches,
and otherFacility Improvement Projects.
The Facilities Financial Planning Program establishes a level charge to
the General Fund that will perpetually replenish the cash flows
necessary to finance the construction of critical City facilities. This plan
will be updated annually as part of the budget process, or as conditions
change. Specific requirements for annual funding and minimum reserve
balance for the FFP Program can be found in City Council Policy F-28.
The eligible uses of this reserve include the cash funding of public facility
improvements or the servicing of related debt.
2. Off Street Parking: Per NBMC Section 12.44.025 the City Council may direct
revenues into the Off -Street Parking Facilities Fund for purposes of the
acquisition, development, and improvement of off street parking facilities,
and for any expenditures necessary or convenient to accomplish such
purposes.
3. In Lieu Parking: Per NBMC Section 12.44.125 the City requires commercial
businesses to provide adequate off-street parking or where this is not
possible, businesses are afforded the opportunity to pay an annual fee and
use parking spaces in a municipal lot, providing such a lot is located within
specified proximity to the business. These funds can only be used to
provide additional parking.
4. Neighborhood Enhancement - A: Funds previously accumulated to
Neighborhood Enhancement Area "A" pursuant to a prior version of
NBMC Section 12.44.027 shall continue to be used only for the purpose of
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enhancing and supplementing services to the West Newport area. Both the
nature of the supplemental services and the definition of the area served are
set forth in NBMC Section 12.44.027.
5. Neighborhood Enhancement - B: Funds previously accumulated to
Neighborhood Enhancement Area "B" pursuant to a prior version of
NBMC Section 12.44.027 shall continue to be used only for the purpose of
enhancing and supplementing services in the Balboa Peninsula. Both the
nature of the supplemental services and the definition of the area served are
set forth in NBMC Section 12.44.027.
6. Cable Franchise: Pursuant to the provisions of the Newport Beach
Municipal Code, Title 5, Business Licenses & Regulations, Chapter 5.44, in
return for the use of the City's streets and public ways for the purpose of
installing, operating, maintaining, or reconstructing a cable system to
provide cable service, fees are collected by the City from cable providers.
Those fees are to be used by the City for support of Public, Education, and
Government access programming only.
7. Oil and Gas Reserve: These funds generated by an annual amount being set
aside from oil and gas field production revenues are to be used to fund
abandonment of wells and facilities as they go out of service.
8. Capital Reap, rroopriation: This reserve recognizes a portion of fund balance
that is not readily available to fund new appropriations because it has been
reappropriated through the budget adoption process or amendment
process for programs or projects authorized in a prior fiscal year that are not
yet complete.
D. Assigned fund balance: That portion of a fund balance that includes
amounts that are constrained by the City's intent to be used for specific
purposes but that are not restricted or committed. This policy hereby
delegates the authority to the City Manager or designee to modify or create
new assignments of fund balance. Constraints imposed on the use of
assigned amounts may be changed by the City Manager or his designee.
Appropriations of balances are subject to Council Policy F-3 concerning
budget adoption and administration.
E. Unassigned fund balance:
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1. Contingency Reserve: The Contingency Reserve shall have a target
balance of twenty five percent (25%) of General Fund "Operating
Budget" as originally adopted. Operating Budget for this purpose shall
include current expenditure appropriations and shall exclude Capital
Improvement Projects, Transfers Out, and additional discretionary
payments to the City's unfunded pension liability. Appropriation and/
or access to these funds are generally reserved for emergency or
unforeseen situations but may be accessed by Council by simple budget
appropriation. Examples may include but are not limited to the
following:
a. A catastrophic loss of critical infrastructure.
b. A State or Federally declared state of emergency.
c. Any settlement arising from a claim or judgment.
d. Deviation from budgeted revenue projections.
e. Any action by another government that eliminates or shifts revenues
from the City.
f. Inability of the City to meet its debt service obligations in any given
year.
g. Other circumstances deemed necessary by City Council to meet the
claims and obligations of the City.
Should the Contingency Reserve be used, the City Manager shall present
a plan to City Council to replenish the reserve within five years.
2. Residual Fund Balance: The residual portion of available fund balance that
is not otherwise restricted, committed, or assigned and is above and
beyond the Contingency Reserve target reserve balance.
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PROPRIETARY FUND RESERVES (NET WORKING CAPITAL)
In the case of Proprietary Funds (Enterprise and Internal Service Funds),
Generally Accepted Accounting Principles ("GAAP") do not permit the reporting
of reserves on the face of City financial statements. However, this does not
preclude the City from setting policies to accumulate financial resources for
prudent financial management of its proprietary fund operations. Since
proprietary funds may include both long-term capital assets and long-term
liabilities, the most comparable measure of liquid financial resources that is
similar to fund balance in proprietary funds is net working capital, which is the
difference between current assets and current liabilities. For all further references
to reserves in Proprietary Funds, Net Working Capital is the intended meaning.
A. Water Enterprise Fund
1. Stabilization and Contingency Reserve: This Reserve is used to provide
sufficient funds to support seasonal variations in cash flows, and in more
extreme conditions to maintain operations for a reasonable period of time
so the City may reorganize in an orderly manner or effectuate a rate
increase to offset sustained cost increases. The intent of the Reserve is to
provide funds to offset cost increases that are projected to be short-lived,
thereby partially eliminating the volatility in annual rate adjustments. It is
not intended to offset ongoing, long-term pricing structure changes. The
target level of this reserve is fifty percent (50%) of the annual operating
budget. This reserve level is intended to provide a reorganization period
of 6 months with zero income or 24 months at a twenty-five percent (25%)
loss rate. The City Council must approve the use of these funds, based on
City Manager recommendation. Funds collected in excess of the
Stabilization reserve target would be available to offset future rate
adjustments, while extended reserve shortfalls would be recovered from
future rate increases. Should catastrophic losses to the infrastructure
system occur, the Stabilization and Contingency Reserve may be called
upon to avoid disruption to water distribution.
2. Infrastructure Replacement Funding Policy: This funding policy is
intended to be a temporary repository for cash flows associated with
the funding of infrastructure replacement projects provided by the Water
Master Plan. The contribution rate is intended to level -amortize the
cost of infrastructure replacement projects over a long period. The annual
funding rate of the Water Master Plan is targeted at an amount that, when
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combined with prior or future year contributions, is sufficient to provide
for the eventual replacement of assets as scheduled in the plan. This
contribution policy is based on the funding requirements of the most
current Water Master Plan. There are no minimum or maximum balances
contemplated by this funding policy. However, the contribution level
should be reviewed periodically or as major updates to the Water Master
Plan occur. Annual funding is contingent on many factors and may
ultimately involve a combined strategy of cash funding and debt issuance
with the intent to normalize the burden on Water customer rates.
B. Wastewater Enterprise Fund
1. Stabilization and Contingency Reserve: This Reserve is used to provide
sufficient funds to support seasonal variations in cash flows, and in more
extreme conditions to maintain operations for a reasonable period of time
so the City may reorganize in an orderly manner or effectuate a rate
increase to offset sustained cost increases. The intent of the Reserve is to
provide funds to offset cost increases that are projected to be short-lived,
thereby partially eliminating the volatility in annual rate adjustments. It is
not intended to offset ongoing, long-term pricing structure changes. The
target level of this reserve is fifty percent (50%) of the annual operating
budget. This reserve level is intended to provide a reorganization period of
6 months with zero income or 24 months at a twenty-five percent (25%) loss
rate. The City Council must approve use of these funds, based on City
Manager recommendation. Funds collected in excess of the Stabilization
reserve target would be available to offset future rate adjustments, while
extended reserve shortfalls would be recovered from future rate increases.
Should catastrophic losses to the infrastructure system occur, the
Stabilization and Contingency Reserve may be called upon to avoid
disruption to wastewater service.
2. Infrastructure Replacement Funding Policy: This funding policy is
intended to be a temporary repository for cash flows associated with
the funding of infrastructure replacement projects provided by the
Wastewater Master Plan. The contribution rate is intended to level -
amortize the cost of infrastructure replacement projects over a long period
of time. The annual funding rate of the Wastewater Master Plan is targeted
at an amount that, when combined with prior or future year contributions,
is sufficient to provide for the eventual replacement of assets as scheduled
in the plan. This contribution policy should be updated periodically based
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on the most current Wastewater Master Plan. There are no minimum or
maximum balances contemplated by this funding policy. However, the
contribution level should be reviewed periodically or as major updates to
the Wastewater Master Plan occur. Annual funding is contingent on many
factors and may ultimately involve a combined strategy of cash funding
and debt issuance with the intent to normalize the burden on Wastewater
customer rates.
C. Internal Service Funds Background.
Internal Service Funds are used to centrally manage and account for specific
program activity in a centralized cost center. Their revenue generally comes
from internal charges to departmental operating budgets rather than external
revenue sources. They have several functions.
--They work well in normalizing departmental budgeting for programs that
have life -cycles greater than one year, thereby facilitating level budgeting for
expenditures that will, by their nature, be erratic from year to year. This also
facilitates easier identification of long term trends.
--They act as a strategic savings plan for long-term assets and liabilities.
--From an analytical standpoint, they enable appropriate distribution of city-
wide costs to individual departments, thereby more readily establishing true
costs of various operations.
Since departmental charges to the internal service fund duplicate the ultimate
expenditure from the internal service fund, they are eliminated when
consolidating entity -wide totals.
The measurement criteria, cash flow patterns, funding horizon and
acceptable funding levels are unique to each program being funded. Policy
regarding target balance and/ or contribution policy, gain/ loss
amortization assumptions, source data, and governance for each of the
City's Internal Service Funds is set forth as follows:
1. For all Internal Service Funds: The Finance Director may transfer part or all
of any unencumbered fund balance between the Internal Service Funds
provided that the withdrawal of funds from the transferred fund would not
cause insufficient reserve levels or insufficient resources to carry out its
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intended purpose. This action is appropriate when the decline in cash balance
in any fund is precipitated by an off -trend non -recurring event. The Finance
Director will make such recommendations as part of the annual budget
adoption or through separate Council action.
2. Equipment Maintenance Fund and Equipment Replacement Fund: The
Equipment Maintenance and Replacement Funds receive operating money
from the Departments to provide equipment maintenance and to fund the
regular replacement of major pieces of equipment (mostly vehicles) at their
economic obsolescence.
a. Equipment Maintenance Fund: The Equipment Maintenance Fund acts
solely as a cost allocation center (vs. a pre -funding center) and is funded
on a pay-as-you-go basis by departmental maintenance charges by vehicle
type and usage requirement. Because of this limited function, the target
year-end balance is zero.
Contribution rates (departmental charges) are set to include the direct costs
associated with maintaining the City vehicle fleet, including fleet
maintenance employee salaries and benefits, operating expenses, and
maintenance related capital outlay. Administrative overhead and
maintenance facility improvements and replacement costs are to be
provided outside of this cost unit. Governance is achieved through annual
management adjustment of contribution rates on the basis of maintenance
cost by vehicle and distribution of costs based on fleet use by department.
b. Equipment Replacement Fund: Operating Departments are charged
annual amounts sufficient to accumulate funds for the replacement of
vehicles, communications equipment, parking equipment, and other
equipment replacement determined to be appropriate by the Finance
Director. The City Manager recommends annual rate adjustments as
part of the budget preparation process. These adjustments are based
on pricing, future replacement schedules, and other variables.
The age and needs of the equipment inventory vary from year to year.
Therefore, the year-end fund balance will fluctuate in direct correlation to
accumulated depreciation. In general, it will increase in the years
preceding the scheduled replacement of relatively large percentage of the
equipment, on a dollar value basis. However, rising equipment costs,
dissimilar future needs, replacing equipment faster than their expected
life, or maintaining equipment longer than its expected life all contribute
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to variation from the projected schedule.
Target funding levels shall be determined by the Finance Director after
considering the age, expected life, and cash flow anticipated by the
replacement equipment being funded. If departmental replacement
charges for equipment prove to be excessive or insufficient with regard to
this target funding level, new rates established during the next budget
cycle will be adjusted with a view toward bringing the balance back to the
target level.
3. Insurance Reserve Funds: The Insurance Reserve funds account for the
activities of general liability, workers' compensation, property, and other
insurance claims. General liability and workers' compensation claims are
self -insured up to an established amount, with excess insurance policies
procured to address larger claims. Property and other insurance policies are
procured with appropriate deductibles, and related claims payments are not
funded from the City's self-insurance program.
Background.
The City employs an actuary to estimate the liabilities associated with the
general liability and workers compensation activities. The costs typically
associated with these programs include claims administration, legal
defense, insurance premiums, self -insured retention, and the
establishment of appropriate loss reserves including "incurred -but -not
reported" (IBNR) claims. Ina prescribed measurement methodology, the
Actuary estimates the liabilities in conformity with Generally Accepted
Accounting Principles (GAAP).
The Actuary refers to this measurement level in their report as the "Expected
Level." However, because actuarial estimates are subject to significant
uncertainties, actuaries typically recommend that a target funding level be set
at an amount in excess of expected liability as a margin to cover contingencies.
A typical target funding level would be set to obtain a specified confidence
level (the percent chance that resources set -aside will be sufficient to cover
existing claims).
Full funding of the Actuary's "Target Funding Level" establishes a seventy-
five percent (75%) confidence there will be sufficient resources (including
projected interest) to pay the full amount of existing claims without future
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contributions. Funding at the "Expected Level" produces a confidence level of
only fifty percent to sixty-five percent (50%-65%). Therefore, the target
funding of insurance reserves should exceed the "Expected Level" to account
for adverse estimate deviation.
Policy & Practice.
The City should target funding of its risk management obligations at not less
than the Expected Level, described above; and not more than an amount
sufficient to establish an eighty percent (80%) Confidence Level. Actuarial
gains and losses should be amortized through rates over an appropriate
period of time. As part of the operating budget, each department will be
charged a rate equal to its proportionate share of the total "revenue" required
to fund the Insurance Reserve Fund at this level.
To lessen the impact of short-term annual rate change fluctuation, City
management may implement one-time fund transfers (rather than
department rate increases) when funding shortfalls appear to be due to
unusually sharp and non -recurring factors. Excess reserves in other areas may
be transferred to the internal service fund in these instances but such transfers
should not exceed the funding necessary to reach an eighty percent (80%)
confidence level interval.
4. Compensated Absences Fund:
BackgKound.
The primary purpose of flex leave, vacation leave, and sick leave is to provide
compensated time off as appropriate and approved. However, under certain
circumstances, typically at separation from service, some employees have the
option of receiving cash -out payments for some accumulated leave balances.
The Compensated Absences Fund is utilized primarily as a budget smoothing
technique for any such leave bank liquidations. The primary purpose of the
Compensated Absences Fund is to maintain a balance sufficient to facilitate
this smoothing.
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Policy and Practice.
The contribution rate will be set to cover estimated annual cash flows based
on a three-year trailing average.
The minimum cash reserve should not fall below that three-year average. The
maximum cash reserve should not exceed fifty percent (50%) of the long term
liability. The target cash reserve shall be the median difference between the
minimum and maximum figures.
Each department will make contributions to the Compensated Absences
Fund through its operating budget as a specified percentage of salary. The
Finance Director will review and recommend adjustments to the percentage
of salary required during the annual budget development process. This
percentage will be set so as to maintain the reserve within the parameters
established above.
5. Post Retirement Funding Policies:
a. Pension FundinZ:
(i) California Public Employees Retirement System(CaIPERS): The City's
principal Defined Benefit Pension program is provided through
contract with CaIPERS. The City's contributions to the plan include an
actuarially determined employer contribution that fluctuates each year
based on an annual actuarial plan valuation. This variable rate employer
contribution includes the normal cost of providing the contracted
benefits plus or minus an amortization of plan changes and net actuarial
gains and losses since the last valuation period.
It is the City's policy to make contributions to the plan equaling at least
one hundred percent (100%) of the actuarially determined contribution.
Any unfunded actuarial liability (UAL) is amortized and paid in
accordance with the actuary's funding recommendations. The City will
strive to maintain its UAL within a range that is considered acceptable
to actuarial standards. The City Council shall consider increasing the
annual CaIPERS contribution should the UAL status fall below
acceptable actuarial standards.
(ii) Laborer's International Union of North America (LIUNA): The City
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provides a supplemental pension plan for some employee associations
through contract with LIUNA. This is funded via employee
contributions of a fixed percentage of total compensation on a pay-as-
you-go basis. The City is not contractually required to guarantee the
level of the ultimate LIUNA benefit to retirees, nor does it do so.
Therefore, the City's liability for this program is fully funded each year.
b. Other Post Employment Benefits (OPEB Funding):
Background.
The City's OPEB funding obligations consists of two retiree medical plans.
New Plan. Effective January 2006, the City and its employee associations
agreed to major changes to the Post Employment Healthcare Plan. New
employees and all current employees participate in a program that requires
certain defined employee and employer contributions while the employee
is in active service. However, once the contributions have been made to the
employee's account, the City has transferred a substantial portion of the
funding risk to the employee.
Old Plan. Eligible employees who retired prior to the "New Plan" and
certain active employees were eligible to continue to receive post -retirement
medical benefits (a defined benefit plan). The cost was divided among the
City, current employees, and retirees. In the past, this program was largely
funded on a pay-as-you-go basis, so there was a significant unfunded
liability. Recognizing this problem, the City began contributing to this
obligation in 2001. In 2008, these assets were placed in a pre -funding trust.
The City's intention is to amortize the remaining unfunded liability within
20 years.
Policy & Practice.
New Plan. Consistent with agreements between the City and Employee
Associations, the new defined contribution plan will be one hundred
percent (100 %) funded, on an ongoing basis, as part of the annual budget
process. Funds to cover this expenditure will be contained within the salary
section of each department's annual operating budget.
Old Plan. The City's policy is to pre fund the explicit (cash subsidy) portion
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of the Actuarial Accrued Liability (AAL) of the remnants of the old plan
over a 20-year amortization period, or less. This amount will be based on
the Annual Required Contribution (ARC) determined by a biennial
actuarial review, subject to review and analysis by the City. The City will
strive to maintain a funded status that will be within a range that is
considered acceptable to actuarial standards. The City Council shall
consider increasing the annual OPEB contribution should the funded status
fall below acceptable actuarial standards.
Adopted - January 24,1994
Amended - April 10,1995
Amended - April 27,1998
Amended - March 14, 2000
Amended - May 8, 2001
Amended - April 23, 2002
Amended - April 13, 2004
Amended - September 15, 2008
Amended - November 12, 2008
Amended - May 24, 2011
Amended - September 27, 2011
Amended - May 14, 2013
Amended - June 10, 2014
Amended - May 12, 2015
Amended - September 25, 2018
Amended - June 14, 2022
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Exhibit 2
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F-28
FACILITIES AND HARBOR AND BEACHES FINANCIAL PLANNING PROGRAMS
PURPOSE
To establish the policy for the administration of the City of Newport Beach's ("City")
Facilities and Harbor and Beaches Financial Planning Programs ("Programs").
DISCUSSION
In addition to the annual Capital Improvement Program ("CIP"), the City has established
a long-term plan for major renovation or replacement of aging facilities and installation
of new infrastructure. 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 ensure that long-term programs addressing large, non -recurring projects for
replacement of facilities is part of the budget process each year.
B. To ensure that development fees and 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 to the extent practicable so as to
minimize the peaks and valleys in General Fund support levels for elements of the
Programs.
D. To ensure that projects are properly prioritized and scheduled, taking into
consideration the relative age, condition, and functional viability of current
facilities; pairing of projects' implementation where prudent; and cost
implications of immediate projects for the overall long-term Programs.
E. Spreading or matching the costs of facilities over the useful life of such facilities
should be a goal of all long-term capital project financings. Debt financing that
extends beyond the useful life of the assets the debt was borrowed to finance
should be avoided.
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SOURCES AND USES OF FUNDS
Funding for the Programs comes from development fees and 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, incremental rent or fees originating from harbor
activity received by the City, net proceeds of Certificates of Participation or other
financing instruments, and investment earnings on temporarily idle funds.
Funds for both Programs are used for actual site acquisition, design, construction, and
directly related costs, as well as debt service expenses.
POLICY AND PROCEDURE
A. In advance of the budget process, staff shall prepare an update of the Facilities
Financial Planning Tool and the Harbor and Beaches Capital Financial Plan for
review, modification, and approval by the City Council.
B. If requested by the City Council, the Finance Committee will review the fiscal
impacts associated with, and recommend the most advantageous methods to fund
the high -priority projects in, the Facilities Financial Planning Tool and the Harbor
and Beaches Capital Financial Plan. The City Manager will consider these
recommendations in the preparation and presentation of the City Manager's
annual budget to the City Council.
C. 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 credited to the Facilities Financial
Planning Reserve fund.
D. 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 and the Harbor and Beaches Capital Financial Plan
E. General Fund contributions to the Facilities Financial Plan shall generally not be
less than three percent (3%) of the total General Fund Revenue Budget or the total
annual debt service on outstanding Facilities Financial Plan -related debt,
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whichever is greater. However, if there is a shortfall in General Fund revenue due
to a decline in economic activity or other unexpected circumstances and it is
necessary to reduce expenditures, General Fund contributions to the Facilities
Financial Planning Program can be temporarily reduced to under the three percent
(3%) threshold.
F. General Fund contributions to the Harbor and Beaches Capital Financial Plan shall
be sufficient so as to adequately fund the identified long-term capital needs
included in the Plan and shall be incrementally increased to account for inflation.
G. The financing duration for any borrowed funds shall not exceed thirty (30) years
or the projected life of the new facility, whichever is less.
H. Transfers from the General Fund to the Facilities Financial Plan Fund for debt
service expenditures shall be separately shown in the City's budget so as to
highlight the portion of the transfer funding debt service.
I. The City shall strive to maintain fund balance in the Facilities Financial Plan Fund
at a level equal to or greater than the maximum annual debt service on existing
obligations.
J. The Facilities Financial Planning Tool and Harbor and Beaches Capital Financial
Plan 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 - June 9, 2015
Amended - February 12, 2019
Amended - June 14, 2022
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