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HomeMy WebLinkAbout15 - Fiscal Year 2022-23 Second Quarter Financial ReportQ �EwPpRT c 9C/FOR TO: FROM CITY OF NEWPORT BEACH City Council Staff Report February 28, 2023 Agenda Item No. 15 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Jason AI -Imam, Finance Director/Treasurer — 949-644-3126, jalimam@newportbeachca.gov PREPARED BY: Shelby Burguan, Budget Manager, sburguan@newportbeachca.gov PHONE: 949-644-3085 TITLE: Fiscal Year 2022-23 Second Quarter Financial Report ABSTRACT: The Finance Department prepares quarterly financial reports to review the status of revenues and expenditures for the City of Newport Beach (City) General Fund and to monitor budgetary trends in other City funds. This report contains information on revenues, expenditures and estimated fund balance for the second quarter of Fiscal Year 2022-23, which was reviewed on February 16, 2023 with the Finance Committee. The second quarter financial report for Fiscal Year 2022-23 provides an analysis of the financial activity of the City from the months of July through December 2022, and projected amounts for the remainder of the fiscal year. Based on information available at the end of the second quarter, a $12.4 million operating surplus for the General Fund is projected for Fiscal Year 2022-23, which is net of non -operating activity that includes one-time transfers out of the General Fund to the Facilities Financing Plan (FFP) Fund and General Fund Capital Improvement Program (CIP). Approximately $10 million of the budget surplus is expected to be utilized to set aside funds for the Contingency Reserve (pursuant to City Council Policy F-2), and to replenish the FFP and General Fund CIP Fund for amounts attributable to the Dove Street Property Purchase. RECOMMENDATIONS: a) 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; b) Approve Budget Amendment No. 23-050, adjusting revenue estimates and expenditure appropriations for the Fiscal Year 2022-23 budget as outlined in the report; and c) Receive and file the report of budget amendments for the second quarter. 15-1 Fiscal Year 2022-23 Second Quarter Financial Report February 28, 2023 Page 2 DISCUSSION: Economic Overview Newport Beach's assessed property values continue to increase providing a strong revenue base for the City. Recent trends in inflation have caused concern in the broader economy and financial markets, however, the City is well -positioned to weather any short-term increase in inflation thanks to the related increase in many of the City's revenues such as sales tax and transient occupancy tax as prices increase. General Fund Revenues Overall General Fund revenue growth has outpaced projections that were incorporated into the adopted Fiscal Year 2022-23 budget. Growth in transient occupancy tax, sales tax, parking revenue, and property tax has contributed to a significant projected increase in General Fund revenues of $7.5 million versus the adopted budget. The following table summarizes the changes to projected General Fund revenues versus the adopted budget for Fiscal Year 2022-23. Details follow highlighting the reasons for the material variances. Fiscal Year 2022-23 P d General Fund Revenues* Property Taxes 131,403,081 131,403,081 133,467,331 2,064,250 2% Sales Tax 46,526,493 46,526,493 49,004,223 2,477,730 5% Transient Occupancy Tax 27,788,728 27,788,728 28,908,841 1,120,113 4% Other Taxes 12,174,567 12,174,567 12,174,567 - 0% Service Fees & Charges 22,005,339 23,228,086 23,228,086 - 0% Parking Revenue 5,681,942 5,681,942 6,976,357 1,294,415 23% Licenses and Permits 5,870,375 5,870,375 5,870,375 - 0% Property Income 6,416,226 6,828,626 6,828,626 - 0% Fines & Penalties 3,870,567 3,870,567 3,870,567 - 0% Intergovernmental 1,823,903 2,380,594 2,959,723 579,129 32% Investment Earnings 1,300,000 1,300,000 1,300,000 - 0% Misc Revenues 169,280 893,691 893,691 - 0% Operating Transfers In 17,300,724 17,300,724 17,300,724 - 0% Total Revenues 282,331,226 285,247,475 292,783,112 7,535,637 3% * Based on preliminary year-end close data available as of December 31, 2022 Property Tax - Property taxes are the City's single largest General Fund revenue and represent approximately 50% of all General Fund revenues. As these revenues are primarily dependent on the assessed valuation established in January 2022, there is typically very little variance seen from the original budget as the year progresses. Projections for Fiscal Year 2022-23 property tax revenues from the City's property tax consultant reflect a 7.6% increase in assessed values in the year ahead. This strong growth is a result of the CPI factor returning to the maximum 2.0% allowed and adding $1.2 billion to the assessed valuation, as well as continued strong property sales activity and price appreciation adding $5.0 billion to the assessed valuation. The City's total assessed valuation for Fiscal Year 2022-23 is now projected to grow from $66.2 billion to $71.2 billion. 15-2 Fiscal Year 2022-23 Second Quarter Financial Report February 28, 2023 Page 3 Sales Tax - The second largest funding source for the General Fund is sales tax revenue, making up more than 15% of General Fund revenues. The City's sales tax base is largely generated from three industry categories - autos and transportation, general consumer goods, and restaurants/hotels. An updated projection provided by the City's sales tax consultant reflects a $2.5 million increase over the adopted budget. Major categories driving this increase are restaurants and hotels, projected to be up 10.8% over the prior year same quarter, state and county pools, up 7.5%, and general consumer goods, up 6.8%. Transient Occupancy Tax - The City has seen a steady rebound and comeback for TOT revenues as the effects of the pandemic receded. The TOT budget for the current fiscal year was developed in anticipation of full recovery of TOT revenues. Revenue from short-term lodging businesses, which grew throughout the pandemic, is at a record high level. Additionally, many hotel properties are reporting record high TOT receipts and have been doing so for multiple consecutive months. While occupancy levels have not returned to pre -pandemic levels, they are slowly increasing. This lag in occupancy levels has been largely offset by higher room rates as shown in the chart provided by Visit Newport Beach: $326.26 $278.88 $253.62 $254.02 $228.53 $191.99 $206.54 $208.16 $205.89 /r $284.44 ��` $168.14 $151.26 $245.99 $181.29 $200.34 $199.62 $166,41 $174.69 $141.42 198.54 $114.90$169.04 $107.24 $75.46 $135.07 $130.46 $55.35 $134.15 w $35.37 �/$114.63 $122 87 $102.56 $79.98 $75.91 $72.95 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2020 # 2021 2022 VEA Newport Beach is now operational, with expanded meeting space, higher room rates, and a full complement of rooms available that had not been usable during the renovation process this past year. Staff had conservatively not included an impact in the adopted TOT revenue budget from the changes to the hotel, which should result in a positive variance beyond the Fiscal Year 2022-23 projection. The Fashion Island Hotel remains closed, but is expected to reopen in the summer of 2023 following a sale and renovation as the Pendry Newport Beach. Similarly, because the timing of the Pendry's opening is uncertain, staff has not included any revenue from the hotel in the projection. These reopening's, combined with the expected return of more business travelers, are anticipated to have additional positive impact on the City's TOT revenues in the years ahead. An updated analysis of the City's TOT revenues shows an expected increase of $1.1 million, due largely to strong short term lodging businesses, which increases the current year projection to $28.9 million. Staff will continue to monitor TOT trends and will provide additional updates to projections as necessary in future quarterly financial reports. 15-3 Fiscal Year 2022-23 Second Quarter Financial Report February 28, 2023 Page 4 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 and 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 '/2 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. • Operating Transfers In — Operating Transfers In reflect regular ongoing transfers into the General Fund from other funds. For Fiscal Year 2022-23, this includes the transfer from the Tidelands Fund for the expenses related to the Cost Allocation Plan. Staff has updated parking revenue projections based on an analysis of actual revenue received year to date. The adopted budget was established with conservative assumptions about public use of the new pay stations, as there has historically been a learning curve as meters are replaced. Parking revenues are also impacted by elevated rates of tourism in the City, which is also reflected in the growth in TOT revenues. Total parking revenues in the General Fund are projected to total $7.4 million, or $1.3 million over the adopted budget. 15-4 Fiscal Year 2022-23 Second Quarter Financial Report February 28, 2023 Page 5 Intergovernmental revenues are projected to exceed the revised budget by $579,000, due to the Medi-Cal Managed Care Rate Range Intergovernmental Transfer (IGT) Program for Cost Recovery of EMS Services. The California Department of Health Care Services (DHCS) offers local units of government that provide health care services the opportunity to secure additional Medi-Cal IGT revenues. Participation in the IGT allows the City to receive additional Federal funds to offset previously unreimbursed costs for providing Medi-Cal plan members emergency medical and transport services. This grant program has a corresponding increase of $310,177 in the grant operating expenditure category, which is reflected below. General Fund Expenditures The Fiscal Year 2022-23 General Fund revised expenditure budget totals $287.3 million, including transfers. Spending trends in Fiscal Year 2022-23 are generally consistent with prior years and do not indicate any cause for concern. Total expenditure savings of $4.6 million are projected at this time due to year-to-date savings from vacancies, offset by expense overages that are addressed in a Budget Amendment that will accompany this report to the City Council and are explained in detail below. The table below summarizes the changes to the adopted expenditure budget for Fiscal Year 2022-23, as well as expenditure savings by budget category. Details follow highlighting the reasons for the material variances. Fiscal Year 2022-23 Pro nditures * Salary & Benefits $163,463,320 $169,989,443 $164,790,055 $ 5,199,389 3.1% Contract Services 26,873,734 30,006,006 30,006,006 - 0.0% Grant Operating 548,485 568,456 878,633 (310,177) -54.6% Utilities 3,837,745 3,837,745 4,104,969 (267,224) -7.0% Supplies & Materials 3,902,350 4,697,570 4,697,570 - 0.0% Maintenance & Repair 13,282,330 14,445,304 14,445,304 - 0.0% Travel &Training 833,758 843,049 843,049 - 0.0% General Expenses 2,178,896 2,280,465 2,280,465 - 0.0% Internal Svc Charge 28,190,206 28,190,206 28,190,206 - 0.0% Risk Management 255,915 255,915 255,915 - 0.0% Capital Expenditures 1,153,666 1,497,547 1,497,547 - 0.0% Operating Transfers Out 30,687,817 30,687,817 30,687,817 - 0.0% Total Expenditures $275,208,222 $287,299,524 $282,677,537 $ 4,621,987 1.6% * Based on preliminary year-end close data available as of December 31, 2022 Significant expenditure budget variances are as follows: • The revised salary and benefits budget totals $170.0 million, an increase of $6.5 million over the adopted budget. The increase is primarily due to the appropriation of $5.0 million from the Fiscal Year 2022-23 structural budget surplus as an additional discretionary payment to CalPERS to further reduce the City's unfunded pension liability. The remaining $1.2 million relates to recently approved contracts with the majority of the City's employee associations. 15-5 Fiscal Year 2022-23 Second Quarter Financial Report February 28, 2023 Page 6 The City does not budget for unknown labor costs, which requires mid -year appropriations for negotiated salary and benefit increases in the year in which new labor contracts are negotiated. An analysis of year-to-date savings from vacant positions has resulted in a projected salary and benefit savings of $5.2 million. The grant operating expenditure category reflects the additional $310,177 needed for the Medi-Cal IGT program, which is fully offset by additional revenues as explained in the revenue section of this report. The utilities budget was increased in Fiscal Year 2022-23 by $830,000 over the Fiscal Year 2021-22 adopted budget, however, additional overages are now apparent. Staff is evaluating this issue and will be making adjustments in the Fiscal Year 2023-24 budget to address it. As budget savings in other expenditure categories are anticipated to fully offset the projected $267,224 overage, staff is not recommending a further adjustment to the utilities budget at this time. General Fund Sources, Uses and Projected Surplus The City continues to be in excellent financial health. Conservative budgeting and sound financial policies have resulted in a trend of General Fund operating surpluses and strong reserve levels for several years. The City is well positioned to continue delivering a high level of service to the community while targeting surplus resources to key priorities each year. Staff currently projects that unrestricted General Fund resources will total $12.4 million at the end of Fiscal Year 2022-23. As is the case each year, staff anticipates that additional budget savings will be realized as the year progresses. The table on the following page illustrates the prior year sources and uses of funds as compared to the adopted budget and the projected year-end results. lus BEGINNING UNRESTRICTED FUND BALANCE $ 24,093,441 $ 24,093,441 $ - 0.0% OPERATING RESOURCES: Operating Revenues Prior Year Resources Carried Forward Transfers In from Other Funds TOTAL OPERATING RESOURCES OPERATING USES: Operating Expenditures Transfers Out TOTAL OPERATING USES NET OPERATING SURPLUS 265,030,502 275,482,388 10,451,886 3.9% - 4,429,573 4,429,573 --- 17,300,724 17,300,724 - 0.0% 282,331,226 297,212,685 14,881,459 5.3% 244,520,405 30,687,817 251,989,720 7,469,315 30,687,817 - 3.1% 0.0% 275,208,222 282,677,537 7,469,315 2.7% $ 7,123,004 $ 14,535,148 $ 7,412,144 104.1% NON -OPERATING RESOURCES & USES Non -Operating Transfers In 1,250,000 1,250,000 0.0% Non -Operating Transfers Out (909,452) (27,457,903) (26,548,451) 2919.2% NON -OPERATING RESOURCES & USES $ 340,548 $ (26,207,903) $ (26,548,451)-7795.8% ENDING UNRESTRICTED FUND BALANCE $ 31,556,994 $ 12,420,687 $ (19,136,307) -60.6% 15-6 Fiscal Year 2022-23 Second Quarter Financial Report February 28, 2023 Page 7 As reflected in the table above, a $12.4 million operating surplus for the General Fund is projected for Fiscal Year 2022-23, which is net of non -operating activity that includes one-time transfers out of the General Fund to the FFP and General Fund CIP. Approximately $10 million of the budget surplus is expected to be utilized to set aside funds for the Contingency Reserve (pursuant to City Council Policy F-2), and to replenish the FFP and General Fund CIP Fund for amounts attributable to the Dove Street Property Purchase. Transfers There are multiple operating and non -operating transfers in and out of the General Fund for Fiscal Year 2022-23. Included in the operating transfers in is the full amount of the cost allocations as a transfer from the Tidelands Fund and included in the operating transfers out is the General Fund's contributions to the Capital Improvement Fund, Tidelands Capital Fund, Facilities Financing Planning Fund, Facilities Maintenance Fund, and the Tidelands operating subsidy. Included in the non -operating transfers in is the advance repayment from the Tidelands Capital Fund, which was utilized for dredging within the City's Tidelands. Included in the non -operating transfers out is the transfer of the prior year surplus to the Police Facility Fund for the purchase of a property on Dove Street, utilization of the Fiscal Year 2022-23 structural surplus which transferred funds to the Capital Improvement Fund, and the Facilities Financing Planning Fund, as well as one time program enhancements included in the adopted budget. Other Major Funds Staff has evaluated the fiscal condition of the City's other major operating funds (Tidelands, Water, and Wastewater). An analysis of the budget performance for these funds indicates that no budget adjustments are necessary and variances between budgeted and actual amounts are within reason. Contributions Fund The City was recently awarded funding from CalRecycle under the Fiscal Year 2022-23 Rubberized Pavement Grant Program. Partial reimbursement is received for using rubberized asphalt concrete to pave certain city streets. Funds are used to supplement various Capital Improvement Program (CIP) street projects that make use of rubberized asphalt concrete, which is derived from recycled tires. A budget amendment will be included as part of this report to the City Council to appropriate $250,000 in revenues and expenditures in the Contributions Fund. Additional unforeseen work was required on the Jamboree Road Pavement Rehabilitation project that is the responsibility of Orange County Water District (OCWD). The City will bill OCWD for the cost of the additional work. A budget amendment will be included as part of this report to the City Council to appropriate an additional $16,328 in revenues and expenditures in the Contributions Fund. FFP Fund The Fiscal Year 2022-23 adopted budget for the Facilities Financing Planning (FFP) Fund included anticipated fee revenue for Park Zone 9 in the amount of $874,000. It is now anticipated that these fees will not be collected until Fiscal Year 2023-24, therefore staff seeks to align the budgeted revenues in this fund with current projections by reducing revenues in account 51303-422105. 15-7 Fiscal Year 2022-23 Second Quarter Financial Report February 28, 2023 Page 8 This has been incorporated into the updated FFP and revenues related to Park Zone 9 will be included in the Fiscal Year 2023-24 adopted budget. Quarterly Report of Budget Amendments Attached to this report as Attachment B is the quarterly listing of budget amendments, which is provided to the City Council as part of each quarterly budget update to enhance transparency. FISCAL IMPACT: As a result of approval of the Budget Amendment (Attachment A) included with this report, revenue estimates will be adjusted downward by $28,543 and $576,505 will be appropriated to the expenditure accounts listed in the Budget Amendment. Approval of these budget amendments is included in the projected Fiscal Year 2022-23 column of the General Fund Sources & Uses table above. 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). ATTACHMENTS: Attachment A — Budget Amendment No. 23-050 Attachment B — Second Quarter Budget Amendments 15-8 ATTACHMENT A BUDGET AMENDMENT NO. 23-050 15-9 Q ��W PORT City of Newport Beach > BUDGET AMENDMENT c9'Fo"'' 2022-23 _ - BA#: 23-050 Department: Finance ONETIME: ❑� ves ❑ No IRequestor: Jason AI -Imam Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: Date a116123 0 COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: To increase revenue estimates and expenditure appropriations relating to the fiscal year 2022-23 quarter two budget update. ❑ from existing budget appropriations Q from additional estimated revenues ❑ from unappropriated fund balance REVENUES Fund # Org Object Project Description Increase or (Decrease) $ 135 13501 431490 23R02 CONTRIBUTIONS FUND CIP - CAL RECYCLE 250,000.00 135 13501 431222 211115 CONTRIBUTIONS FUND CIP - OCWD CONTR 16,328.00 513 51303 422105 FFP NON OP - PARK FEES ZONE 9 (874,000.00) 010 01040404 431246 EMERGENCY MEDICAL SERVICES - MEDI-CAL IGT 579,129.00 Subtotal $ (28,543.00) EXPENDITURES Fund # Org Object Project Description Increase or (Decrease) $ 135 13501 980000 23R02 CONTRIBUTIONS FUND CIP - CIP EXPENDITURES FOR GL 250,000.00 135 13501 980000 21R15 CONTRIBUTIONS FUND CIP - CIP EXPENDITURES FOR GL 16,328.00 010 01040404 821008 EMERGENCY MEDICAL SERVICES - MEDI-CAL IGT 310,177.00 Subtotal $ 576,50500 FUND BALANCE Fund # Object Description Increase or (Decrease) $ 010 300000 GENERAL FUND - FUND BALANCE CONTROL 268,952.00 135 300000 CONTRIBUTIONS FUND - FUND BALANCE CONTROL - 513 300000 FACILITIES FINANCING PLAN - FUND BALANCE CONTROL (874,000.00) Subtotal $ (605,048.00) Fund Balance Change Required 15-10 ATTACHMENT B BUDGET AMENDMENTS FOR THE SECOND QUARTER 15-11 City of Newport Beach Fiscal Year 2022-23 Budget Amendments Quarter Ending December 31, 2022 Net Effect on Fund Balance BA# Date Amendment Type Fund Revenues Expenditures Increase/(Decrease) Department Explanation 023 09/20/2022 City Council GENERAL FUND 19,281.50 19,281.50 Library Transfer to accept check from Dorothy Arens Ressel Trust and SPECIAL PURPOSE DEPOSIT FUND - - (19,281.50) increase expenditure in Library Account. 024 10/11/2022 City Council WATER CAPITAL FUND 1,379,100.00 1,379,100.00 1,379,100.00 Public Works To increase expenditures for the West Irvine Terrace and Balboa 1,379,100.00 (1,379,100.00) Island Water Main Replacement Project (23W13). 025 10/11/2022 City Council GENERAL FUND 3,000.00 - 3,000.00 CDD To increase anticipated revenues to account for concession agreement at Corona del Mar State Beach. 026 10/25/2022 City Council POLICE FACILITY NEW 24,093,441.00 24,093,441.00 Finance To appropriate the FY 2021-22 year-end surplus. GENERAL FUND 24,093,441.00 (24,093,441.00) 027 10/25/2022 City Council GENERAL FUND 649,100.00 677,000.00 (27,900.00) Finance To appropriate revenues and expenses related to the Recreation CONTRIBUTIONS FUND 382,968.31 130,873.31 252,095.00 department's fee based classes, to appropriate revenues and expenses in the Contributions Fund for CIP Projects, and to ARPA-AMERICAN RESCUE PLANT ACT SEWER FUND 50,008.59 50,008.59 appropriate revenues and expenses for the ARPA Wastewater arrearage program. 028 10/25/2022 City Council GENERAL FUND 300,000.00 300,000.00 CDD To transfer and appropriate funding from the Facilities Financing GENERAL FUND CAPITAL PROJECTS 1,450,000.00 (1,450,000.00) Plan (FFP) Fund to the Police Facility Fund in order to fund the purchase of a parcel located at 1201 Dove Street, Newport FACILITIES FINANCING PLAN 5,506,461.50 (5,506,461.50) Beach. POLICE FACILITY NEW 6,956,461.50 30,775,000.00 (23,818,538.50) 029 10/25/2022 City Council POLICE EQUIPMENT FUND - 104,876.59 (104,876.59) Police To purchase seven (7) Ford Police Interceptor Hybrid Utility Vehicles - Additional funding due to added costs for vehicles above previously funded amount. 030 11/09/2022 City Manager GENERAL FUND 4,265.00 4,265.00 Police EMPG Funds - Transfer received Grant Revenues to Expense Account. 031 11/29/2022 City Council GENERAL FUND - 71,640.00 (71,640.00) Human Resources To appropriate budget in salary and benefit accounts to fund a new Human Resources Specialist I position. 032 11/15/2022 City Council POLICE EQUIPMENT FUND - 56,532.87 (56,532.87) Police Appropriate increased funds to purchase Patrol Vehicles, in conjunction with FY22 encumbrance. 033 11/15/2022 City Council TIDE & SUBMERGED LANDS FUND - 39,500.00 (39,500.00) Public Works To increase appropriations to the Upper Newport Bay Reserve from the Tide & Submerged Lands fund for the Big Canyon Phase 2 Restoration Project (23X11). 034 11/09/2022 City Manager MEASURE M-COMPETITIVE FUND 5,009.62 - - Public Works In Fiscal Year 2020-21, the City of Newport Beach received funding from the Orange County Transporation Authority (OCTA) for the Newport Bay Trash Mitigation project expense in FY 2019- GENERAL FUND - 5,009.62 20. The project cost was $125,226.00, however, only $120,216.38 was received from OCTA. Staff is proposing transferring $5,009.62 from the General Fund in order to balance the revenues and expenses for this prior year project. 15-12 City of Newport Beach Fiscal Year 2022-23 Budget Amendments Quarter Ending December 31, 2022 Net Effect on Fund Balance BA# Date Amendment Type Fund Revenues Expenditures Increase/(Decrease) Department Explanation 035 11/29/2022 City Council GENERAL FUND 11,706.00 11,706.00 Police EMPG Funds -Appropriating additional Grant Revenues and Expenses. 036 11/29/2022 City Council GENERAL FUND - 275,242.82 (275,242.82) Human Resources FY 23 - Additional CalPERS and Cafeteria Plan Contributions. TIDE & SUBMERGED LANDS FUND 1,652.72 (1,652.72) ENVIRONMENTAL LIABILITY FUND 228.75 (228.75) WATER ENTERPRISE FUND 12,505.96 (12,505.96) WASTEWATER ENTERPRISE FUND 3,905.04 (3,905.04) EQUIPMENT FUND 2,587.65 (2,587.65) IT ISF 7,030.31 (7,030.31) 037 11/29/2022 City Council CONTRIBUTIONS FUND 195,562.00 195,562.00 Public Works To appropriate new revenues and expenditures to fund the MEASURE M FUND 984,303.75 (984,303.75) Newport Coast Drive and Balboa Boulevard Pavement Rehabilitation Project (22R14). 038 11/29/2022 City Council PARKS & COMMUNITY CENTERS 544,345.00 544,345.00 Public Works To appropriate expenditures after awarding a construction CIRCULATION & TRANSPORTATION - 2,743,600.00 (2,743,600.00) contract for the Superior Avenue Pedestrian/Bicycle Bridge and Sunset View park lot project (15T09). FACILITIES FINANCING PLAN 544,345.00 (544,345.00) 039 11/29/2022 City Manager GENERAL FUND 2,500.00 2,500.00 Library To appropriate expenditures to cover required expenses for the Literacy Program. 040 11/21/2022 City Manager GENERAL FUND - 20,984.10 - City Attorney Transfer funds to cover salary cost of part-time paralegal. (20,984.10) 041 12/13/2022 City Council WATER ENTERPRISE FUND - 140,000.00 (140,000.00) Utilities To appropriate funds to the water system service account for the purchase of liquid sodium hypochlorite, which is used to disinfect the City's drinking water supplied prior to the water entering the 042 12/13/2022 City Council CONTRIBUTIONS FUND 2,504,229.75 2,504,229.75 Public Works Request approval of recognizing additional revenue and appropriating expenses as it relates to Assessment District No. 111 and Underground Utilities District No. 22 Phases 2 & 3, Contract No.7833-1 (21A11). 043 12/13/2022 City Council TIDELANDS HARBOR CAP FUND - 581,553.00 (581,553.00) Public Works To appropriate expenses to collect and test additional sediment samples for a higher resolution testing program as required by the U.S. Environmental Protection Agency (USEPA). 044 12/07/2022 City Manager GENERAL FUND (5,577.22) - City Attorney To transfer funds to complete PO 22300177 for the purchase of 5,577.22 furniture/wardrobes. 15-13