HomeMy WebLinkAboutFinance Committee Agenda Packet - April 13, 2023CITY OF NEWPORT BEACH
FINANCE COMMITTEE AGENDA
Community Room - 100 Civic Center Drive
Thursday, April 13, 2023 - 3:00 PM
Finance Committee Members:
Will O'Neill, Chair
Noah Blom, Mayor
Joe Stapleton, Council Member
Allan Cashion, Committee Member
William Collopy, Committee Member
Keith Curry, Committee Member
Nancy Scarbrough, Committee Member
Staff Members:
Grace K. Leung, City Manager
Jason Al-Imam, Finance Director/Treasurer
Michael Gomez, Deputy Finance Director
Amy Byrne, Administrative Assistant
NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT
Any presentation requiring the use of the City of Newport Beach’s equipment must be submitted to the Finance
Director/Treasurer 24 hours prior to the scheduled Finance Committee meeting.
NOTICE REGARDING PUBLIC PARTICIPATION
Questions and comments may also be submitted in writing for the Finance Committee’s consideration by sending them
to Jason Al-Imam, Finance Director/Treasurer, at jalimam@newportbeachca.gov. To give the Finance Committee
adequate time to review your questions and comments, please submit your written comments by no later than 5 p.m.
the day prior to the Finance Committee meeting. All correspondence will be made part of the record.
NOTICE TO THE PUBLIC
The Finance Committee meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that
the Finance Committee agenda be posted at least seventy two (72) hours in advance of each regular meeting and that
the public be allowed to comment on agenda items before the Committee and items not on the agenda but are within
the subject matter jurisdiction of the Finance Committee. The Chair may limit public comments to a reasonable amount
of time, generally three (3) minutes per person.
It is the intention of the City of Newport Beach to comply with the Americans with Disabilities Act (“ADA”) in all respects.
If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, the
City of Newport Beach will attempt to accommodate you in every reasonable manner. If requested, this agenda will be
made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the
Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in
implementation thereof. Please contact the City Clerk’s Office at least forty-eight (48) hours prior to the meeting to
inform us of your particular needs and to determine if accommodation is feasible at (949) 644-3127 or
jalimam@newportbeachca.gov.
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Finance Committee Meeting
I.CALL MEETING TO ORDER
II.ROLL CALL
III.PUBLIC COMMENTS
Public comments are invited on agenda items. Speakers must limit comments to three (3)
minutes. Before speaking, we invite, but do not require, you to state your name for the record.
The Finance Committee has the discretion to extend or shorten the speakers’ time limit on
agenda items, provided the time limit adjustment is applied equally to all speakers. As a
courtesy, please turn cell phones off or set them in the silent mode.
IV.CONSENT CALENDAR
MINUTES OF MARCH 16, 2023A.
Recommended Action:
Approve and file.
DRAFT MINUTES 03.16.2023
V.CURRENT BUSINESS
2023 FEE STUDY UPDATEA.
Summary:
Staff will present the Master Fee Schedule to the Finance Committee prior to
presenting it to the City Council.
Recommended Action:
Receive and file.
STAFF REPORT
ATTACHMENT A
ATTACHMENT B
PROPOSED FY 2023-24 BUDGET OVERVIEWB.
Summary:
Staff will present to the Committee an overview of the expenditure budget for FY
2023-24 that will be presented to the City Council in May.
Recommended Action:
Receive and file.
BUDGET AMENDMENTS FOR QUARTER ENDING MARCH 31, 2023C.
Summary:
Staff will report on the budget amendments from the prior quarter.
Recommended Action:
Receive and file.
STAFF REPORT
ATTACHMENT A
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WORK PLAN REVIEWD.
Summary:
Staff will report on the upcoming Finance Committee items.
Recommended Action:
Receive and file.
WORK PLAN 04.13.2023
X.ADJOURNMENT
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CITY OF NEWPORT BEACH FINANCE COMMITTEE MARCH 16, 2023 MEETING MINUTES I. CALL MEETING TO ORDER The meeting was called to order at 3:02 p.m. II. ROLL CALL PRESENT: Will O’Neill, Chair
Allen Cashion, Committee Member William Collopy, Committee Member Keith Curry, Committee Member Nancy Scarbrough, Committee Member
ABSENT: Noah Blom, Mayor (excused)
Joe Stapleton, Council Member (excused)
STAFF PRESENT: City Manager Grace K. Leung, Finance Director Jason Al-Imam, Deputy
Finance Director Michael Gomez, Administrative Assistant Amy Byrne,
Budget Manager Shelby Burguan, Budget Analyst Eric Wilson, Budget
Analyst Jessica Nguyen, Contracts and Purchasing Administrator Sander
Huang, Management Analyst Melanie Franceschini, Administrative
Analyst Raymund Reyes, UCI Intern Kimberly Sanchez, Harbormaster
Paul Blank, Code Enforcement Supervisor Matt Cosylion, Finance
Manager/Public Works Theresa Schweitzer, Accounting Manager Trevor
Power
MEMBERS OF THE PUBLIC: Jim Mosher, Resident; Charles Klobe, Resident OTHER ENTITIES: None III. PUBLIC COMMENTS Chair O’Neill opened public comments. Jim Mosher commented on Council Policy F-14 and suggested the document could benefit from additional clarification, particularly as related to circumstances where loopholes could allow staff to evade the City Council approved limits for staff approvals. He provided examples of situations that could occur with “on-call” and invoice-only type of contracts. Chair O’Neill requested Mr. Mosher email him a copy of the example he referenced in his comments. Seeing no others, Chair O’Neill closed public comments. IV. CONSENT CALENDAR A. MINUTES OF FEBRUARY 16, 2023 Recommended Action: Approve and file. Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed public comments.
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MOTION: Curry moved to approve the minutes of February 16, 2023 as amended, seconded by Scarbrough. The motion carried as follows: AYES: Collopy, Curry, Scarbrough, O’Neill NOES: None ABSENT: Blom, Stapleton
ABSTAIN: Cashion V. CURRENT BUSINESS A. OVERVIEW OF REVENUE PROJECTIONS Summary: Staff will present to the Committee an overview of the assumptions utilized to prepare revenue projections for the City's major funds as part of the FY 2023-24 budget preparation process. Recommended Action: Receive and file.
Finance Director Al-Imam introduced the item and explained that the presentation will outline the City’s methodology and assumptions used in forecasting revenues. He pointed out that under Council Policy F-3, staff is required to conservatively project revenues and by design, the budget is prepared to result in an operating surplus. He noted an overview of the
expenditure projections will be presented to the Finance Committee in April 2023, and introduced Budget Manager Burguan, who continued with the presentation.
Budget Manager Burguan commenced her presentation with a review of historical General
Fund Revenues. There is $9.5 million of projected revenue growth in FY 2023-24 as compared to the FY 2022-23 projected amount. The primary drivers of growth are Property Tax (+$4.5
million), Transient Occupancy Tax (TOT) ($1.45 million), Parking & Property Income (+$2.2 million), and Transfer from Tidelands (CAP) ($1.7 million).
Chair O’Neill commented that it was worth noting that the City has changed how transfers are
reflected, which are now incorporated within revenues.
Budget Manager Burguan continued her presentation and presented information related to the City’s top three sources of revenue, which is derived from Property Taxes, Sales Tax and
Transient Occupancy Tax revenue and comprises 75% of all General Fund Revenue.
She provided detail as to the various sources of other revenue including 10% from service fees and charges/licenses and permits, 5% from property income, and 4% comes from other taxes.
The remaining 3% comes from Intergovernmental revenues (primarily Proposition 172 revenue), fines and penalties (primarily parking fines), and investment income and other minor
revenues.
Budget Manager Burguan provided detailed information regarding each of the remaining categories which comprise the 25% of revenues to the City. Service fees and permits revenue
primarily includes building and planning fees, recreation class and Junior Lifeguard program fees, paramedic service fees, and recycling fees. Projection methodology is developed by Finance staff in collaboration with Department subject matter experts. Growth is projected due to increased recreation program activity and Junior Lifeguard Program participation.
In response to an inquiry from Committee Member Collopy, Finance Director Al-Imam stated a
review of the City’s various fees will be presented to the Finance Committee at their April meeting. Budget Manager Burguan continued by outlining that property income revenues include
revenues from property leases and parking revenue from parking lots and meters. Next year,
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part of the $2.2 million increase in revenue relates to anticipated lease revenue from the property located at 1201 Dove Street. Chair O’Neill inquired about why property income revenue decreased in FY 2022-23. Budget Manager Burguan responded that staff would research and follow up with the Committee with information on why there was a decrease in revenue that year. Chair O’Neill commented there
are many factors which contribute to revenues in this area, including parking, and would be curious if the drop was from lease-generated revenues. Committee Member Scarbrough inquired if the City has performed an audit of its property leases. City Manager Leung indicated that staff would look into this, and would report back to the Committee on whether the City has performed an audit of its property leases.
Budget Manager Burguan continued her presentation by detailing the final category of tax revenues (other taxes) which include business license, property tax, and franchise fees. Overall this category has steadily decreased since FY 2020-21 however inflation is contributing to
recent increases.
Committee Member Collopy expressed concern with the property transfer tax, citing the projection that the real estate marking is slowing down considerably. He inquired how conservative is the City’s approach with regard to the transfer tax. Budget Manager Burguan responded property tax transfers are budgeted at $3.4 million dollars where last year they were
$4.1 million. Committee Member Collopy commented the projections are likely very accurate and not just conservative. Finance Director Al-Imam also noted the same methodology was
used on the property tax side with supplemental property tax revenue, which was also reduced.
Budget Manager Burguan continued her presentation by focusing on the Tidelands Fund, a special revenue fund used to account for revenues related to the Tidelands areas under the
City’s jurisdiction. Funds are deposited into either the operating or capital fund from all revenue generating activities within the Tidelands. The General Fund subsidizes the operations and
capital funds. A slide was presented which displayed the top Tidelands revenue producers, including the Balboa Bay Club and Balboa Pier Parking Lot.
Committee Member Curry confirmed with staff that the lease revenue from Lido House goes
into the General Fund not the Tidelands Fund.
Budget Manager Burguan continued her presentation on the Tidelands Fund, stating that 96% of revenues are generated from property income in the categories of leased property income,
parking income, and oil well income. 4% of revenues are generated by investment income (primarily from capital reserves). The Tidelands Fund revenue projection for 2023-24 is $19.8
million.
Budget Manager Burguan continued her presentation by detailing water utility revenue projections. She stated 98% of revenues are generated by service fees and charges from
customers, 1% of revenues are generated by investment income, and various other sources account for the final 1% of revenues. The 2020 Rate plan provides for one last annual increase
on January 1, 2024. Also, staff has commenced a rate study with a consultant. The FY 2023-24 projection for water utility revenues is $34.8 million. The increase in revenues is due to a rate increase in January but which is offset by a decrease in expected water usage.
Budget Manager Burguan continued her presentation by detailing wastewater utility revenue projections. She stated 98% of revenues are generated by service fees and charges from
customers and various other sources account for the final 2% of revenues. A rate plan is in place with annual increases through January 2022 and no new rates are currently scheduled. Staff has commenced a rate study with a consultant.
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Committee Member Curry inquired whether there was a surcharge for excess water usage during the “so-called” drought emergency. Chair O’Neill and City Manager Leung both confirmed there was not. Chair O’Neill confirmed there were no new rates currently scheduled however City Council authorized a new rate study. Budget Manager Burguan concluded her presentation by stating staff will return in April to
present the proposed expenditures. Chair O’Neill opened the floor to the Finance Committee for questions. Committee Member Cashion had a few follow up questions regarding Tidelands Funds and inquired as to the appropriate time to direct them to staff. Chair O’Neill suggested he schedule
a meeting with the Finance Director and also copy the City Manager on the request. Committee Member Collopy inquired if CalPERS had exposure to SVB. Finance Director Al-Imam indicated that he would look into that, and would report back to the Finance Committee.
Chair O’Neill opened public comments.
Charles Klobe expressed concerns regarding impacts to the City’s revenue streams due to on-line retailers shifting to the fulfillment centers. He contemplated that every City with similar impacts would join in a challenge to that practice.
Jim Mosher referenced the top ten Tidelands Revenue producers’ slide did not include private
piers which he understood from the Harbor Commission meetings was a significant revenue source. He stated there was an equity issue related to assessment and requested staff look
into the matter.
Seeing no other speakers, Chair O’Neill closed public comments.
In response to Chair O’Neill’s inquiry regarding the private piers, staff responded they would follow up on the matter and return to the Finance Committee with additional information.
Committee Member Collopy requested the entire Finance Committee be copied on responses on this item.
In response to a request from Committee Member Scarbrough regarding being copied on the
answer to the CalPERS question, City Manager Leung responded the entire Finance Committee will be provided with the information.
In response to an inquiry from Committee Member Collopy regarding the timelines for the
Departments to prepare their budget requests, City Manager Leung stated they begin in December, and she reviews them in-depth with each Department in approximately February.
She continues to vet them through, and the proposals will be presented to the Finance Committee in April.
The item was received and filed.
B. HARBOR DEPARTMENT OPERATIONS AND FINANCES Summary: Staff will present to the Committee an updated overview of the status of the
Harbor Department's budget and staffing, as well as possible future budget enhancements for the Department.
Recommended Action: Receive and file. Harbormaster Paul Blank introduced the item and provided an overview of the Harbor
Department Operations and Finances. A PowerPoint presentation was displayed. He provided
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historical information about the Department, including their inception as an independent Department in July 2018. The Harbor Department’s mission is to keep Newport Harbor clean, safe, and well-enjoyed for residents first, then businesses, then outside visitors. The Harbor Department provides services including mooring management, code enforcement, commercial marine activity and harbor events permitting, safety/rescue operations, Marina Park/Hospitality, Pump-out equipment maintenance and upgrades, impounds and auctions, and public relations
and concierge services. Harbormaster Blank provided detail on service statistics in the various service areas. Committee Member Collopy inquired as to how the auctions are publicized. Harbormaster Blank responded they use all of the City various media outlets, including the City’s social media site.
Harbormaster Blank continued his presentation, noting all Department activities are tracked. He stated their most significant activity tracking is related to code enforcement activities, and provided the example of ensuring individuals are not utilizing public docks for storage of private
vessels. This remains a large focus for the Department.
Harbormaster Blank continued his presentation, displaying information regarding revenues. He stated there were certain revenues over which they have very little control, regardless of the Department’s efforts. However, there are other revenues over which the Department’s efforts do make a significant difference in that the Newport Harbor is a more welcoming and friendly
place to visit, thereby generating revenues from those efforts. He displayed a slide illustrating Marina Park guest survey results which indicate an increasing level of satisfaction from 2021
to 2022.
Harbormaster Blank continued his presentation, speaking to the various challenges to the Department’s operations, including servicing a very diverse constituency, increasing traffic and
opportunities for Harbor use, balance between commercial and recreational uses, water quality and environmental concerns, competing agencies with varying scopes of authority, noise, and
speed impacts. The biggest challenges are noise and speed impacts.
In response to an inquiry from Committee Member Collopy regarding permitting for charter vessels, Harbormaster Blank responded there are a variety of agencies which are involved with
licensing in the harbor, however, all vessels must obtain a marine activities permit from the Harbor Department before they can operate legally in the harbor.
Chair O’Neill clarified that it was not the Transient Occupancy Tax (TOT) that was low for the
vessels, but rather the “passenger tax.” Discussion ensued regarding the impacts of the pandemic on the collection of those taxes and there was a dip during that time. Harbormaster
Blank stated the Department is at approximately 80% of where they were pre-pandemic as related to the collection of the passenger tax. He also estimated the charter vessels will likely
be back to pre-pandemic levels by this summer.
Committee Member Scarbrough inquired whether that revenue comes back to the City. Harbormaster Blank responded affirmatively that it goes into the General Fund. Chair O’Neill
confirmed it is the City’s tax and City Manager Leung affirmed it would require five of the seven Council Members to place the matter on the ballot in order for the voters to consider any tax increase.
Harbormaster Blank continued with his presentation, stating the passenger tax is graduated based on occupancy of the vessel. Passenger capacity greater than 50 is taxes at $2.50. In
response to an inquiry from Committee Member Collopy, Harbormaster Blank confirmed Long Beach charges $14.00.
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Harbormaster Blank displayed slides which provided a historical perspective of the Harbor Department’s budget. Revenues have grown steadily in recent years. The slides displayed the major sources of revenue. Committee Member Collopy inquired whether the City’s capital improvement plan included addressing the Balboa Yacht Basin Slips. Harbormaster Blank stated there will be a project
that rebuilds that marina in approximately three years. Committee Member Collopy inquired how that project will impact revenues. Harbormaster Blank stated revenue will be cut during that project by approximately 20% and there are contingency plans to utilize other available slips and docks during that time. Harbormaster Blank continued with his presentation, displaying slides which illustrated
expenditure categories and Harbor Department staffing. He also stated the challenges involved with staffing turnover, detailing that 43.2% of staff separate from employment within the first year. It also requires significant time and attention to hire employees. Many of the part-time employees leave for a full-time employment opportunity.
Harbormaster Blank detailed the Department’s program enhancement requests which include
conversion of 6 full-time equivalents of current part-time positions to full-time positions. City Manager Leung confirmed the City took a very conservative approach in starting the Department and laying out all operations. She noted the challenges impacting Department operations with a majority of the employees being of part-time status. She noted the impacts
were carefully vetted prior to making the request, as the City does not take likely the conversion of positions from part-time to full-time.
Harbormaster Blank spoke regarding an additional program enhancement, extended hours of
operation for the Department, citing the ability to provide needed additional code enforcement particularly as related to noise complaints. He mentioned he is frequently called to provide
certain services beyond the normal hours of operation and provided several examples.
Chair O’Neill inquired that if Harbormaster Blank did not respond in those occasions, would the Sheriff’s Department then respond. Harbormaster Blank did confirm they would, however, he
often is able to respond more quickly.
Harbormaster Blank displayed slides which provided detail on the conversion of part-time to full-time positions. Committee Member Scarbrough stated she would support the conversion
of part-time to full-time employees, noting the time-consuming nature of managing the onboarding and training process, just to have employees leave.
Committee Member Scarbrough inquired whether the City could recoup funds from the County
related to the extended hours of operation program enhancement request. Harbormaster Blank stated even though the County will respond in certain after-hours situations, the City is
responsible for code enforcement activities in the harbor.
Committee Member Cashion inquired as to what would have happened to the couple whose vessel went adrift in the example provided earlier by Harbormaster Blank, to which City
Manager Leung and Harbormaster Blank responded they would have unfortunately been on their own to find a solution until the Sheriff’s Department responded. In response to Committee Member Curry’s inquiry regarding the use of Police or Fire boat
patrols, Harbormaster Blank stated he is unaware of any such consideration by the City at this time and noted the Harbor Department is continually striving to strengthen the collaboration
with the Police Department related to harbor matters. Committee Member Collopy inquired if the City pays for County Sheriff’s Department services. Chair O’Neill stated the City does not and that it has not been realistically proposed, as the City
would likely need to take over a substantial amount of revenue producing property in the harbor
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before such conversation could be entertained. Chair O’Neill noted the County has certain pockets of property they control on the harbor, and this may be something the City may want to address in the future.
Chair O’Neill stated he was in favor of the approach being taken by the Harbor Department and acknowledged other Departments are also experiencing similar issues in relation to part-
time employees. He expressed support to address the conversion items at the joint budget planning session.
Chair O’Neill opened public comments.
Jim Mosher stated several mooring users provided comments at the most recent Harbor
Commission meeting related to a mooring buyback program. Mr. Mosher requested information on the specifics of the mooring buyback program, in which budget year it would commence and how the program would be funded.
Chair O’Neill stated he was not familiar with the program mentioned by Mr. Mosher and inquired whether staff could provide additional information. Harbormaster Blank responded there was
no action or vote taken on any specific program, however at the recent Harbor Commission there was discussion regarding the types of programs which could be considered as a capital program under the Harbor and Beaches Master Plan. One of the projects proposed, but was subsequently removed from consideration, was a mooring buyback program. Harbormaster
Blank stated a mooring buyback program is not included in the capital improvement program.
Seeing no other individuals who wanted to speak, Chair O’Neill closed public comments.
The item was received and filed.
C.WORK PLAN REVIEW
Summary: Staff will report on the upcoming Finance Committee items.
Recommended Action: Receive and file.
Chair O’Neill stated the entire budget review will take place on April 13, 2023 and requestedthe Finance Committee be prepared with any questions. The fee study review will also be
presented. City Manager Leung stated they will move the date for the enabling resolutions toMay 11.
Chair O’Neill stated the Joint City Council and Finance Committee Budget Study Session will
take place Tuesday, May 23, 2023, at 4:00 p.m. The Finance Committee is scheduled to maketheir recommendation on the budget to the City Council on May 25, 2023. He also reminded
Committee Members that their terms are up in June and to contact their appointing CouncilMember if they would like to continue service on the Finance Committee.
He suggested the Finance Committee to think about the types of items they would like to see
in the first half of the Fiscal Year prior to commencing on their budget review for FY 2024-25.
Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed public comments.
There was no further action taken on this item.
VI.ADJOURNMENT
The Finance Committee adjourned at 4:39 p.m. to the next regular meeting of the FinanceCommittee on March 16, 2023 at 3:00 p.m. in memory of David Grant.
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The agenda for the Regular Meeting was posted on March 10, 2023, at 12:11 p.m., in the binder and on the City Hall Electronic Board located in the entrance of the Council Chambers at 100 Civic Center Drive. Attest:
___________________________________ _____________________ Will O’Neill, Chair Date Finance Committee
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Agenda Item No. 5A April 13, 2023
TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE
FROM: Finance Department Jason Al-Imam, Finance Director/City Treasurer 949-644-3123, jalimam@newportbeachca.gov
SUBJECT: FISCAL YEAR 2022-2023 FEE STUDY UPDATE
SUMMARY: Fees are regularly studied and updated by departments to ensure the proper recovery for cost of services in accordance with the cost recovery rates established by the City Council. Departments are reviewed on a rotating basis such that each department’s fees
are comprehensively studied and updated every 3-5 years. This year, staff has
comprehensively reviewed the fees for the following departments:
•Community Development
•Fire
•Police
Specific recommendations related to the fees referenced above are discussed in detail
later in this report. The proposed net fiscal impact of the proposed fee changes is an
increase of $620,000 in revenue to the General Fund as summarized in the table below.
CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT
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Staff has also identified necessary administrative fee updates in the Aquatic Activities fee
category of the Recreation and Senior Services Department that will be reflected in the
redlined version of the Schedule of Fees, Fines, and Rents (SRFF) that will be included
in the fee resolution presented to the City Council. Subject to City Council approval, staff
recommends that the fee schedule updates, with the exceptions noted in this report,
become effective August 1, 2023. In addition to the proposed fee updates, staff is
recommending modifications to the Newport Beach Municipal Code (NBMC) Section
3.36.030 (Cost Recovery Percentages) to facilitate the changes to authorized levels of
cost recovery required by the fee changes that are recommended at this time.
RECOMMENDED ACTION: Review and discuss the proposed fee updates discussed in this report and provide any recommendations for consideration by the City Manager and City Council.
DISCUSSION: NBMC Section 3.36, and Council Policy F-4 (Revenue Measures) provide staff and the
City Council with policy guidance related to setting cost recovery targets and updating
user fees. User fees, or cost-of-service fees, are charged to a citizen or group for services performed or provided by a government agency on their behalf. If the service primarily benefits an individual or group of people, then the burden of that cost should be borne by the person receiving the benefit. NBMC Section 3.36.030 sets the cost
recovery for user fees at 100%, with the exception of the subsidized fees listed in Exhibit
“A” of that same section, as well as those limited by California or Federal statutes. A recommendation for less than a 100% cost recovery rate may occur when a service is beneficial to the community at large along with specific individuals or groups, and/or when there is an economic incentive, or disincentive, to do so. In these cases, another
City revenue source – in most cases, the General Fund - subsidizes the service. Any
newly proposed fee or fee increase that is not approved by the City Council will by default be subsidized by the General Fund.
The SRFF primarily includes cost-of-services fees, which are designed to recover the
City’s cost to provide the related service. In order to establish fees on the basis of full
cost recovery, it is necessary to determine the cost of services. Using well-established cost accounting methodologies, the City’s consultant, ClearSource Financial Consulting (ClearSource), conducts a comprehensive review and update of the Citywide cost allocation plan, and direct user fee calculations for each department on a rotating basis
every three to five years. This year, ClearSource studied the following departments at
staff’s direction:
•Community Development
•Fire
•Police
As part of this study, ClearSource met with City staff from each studied department to discuss the services provided, the annual volume for those services, and the staff
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Fee Study Update April 13, 2023
Page 3 resources and time estimates for delivering the related services. To factor in both direct
and indirect costs, ClearSource then calculated the department staff’s fully burdened
hourly rate, which includes both internal administrative as well as citywide overhead costs. The fully burdened hourly rates are applied to the time estimates provided by staff and the fee is calculated. Consistent with the City’s round down practice and excluding Library Per Page Copies, all fees proposed that are $5 or more are rounded down to the
nearest dollar and all fees proposed that are less than $5 are rounded down to the
nearest quarter. Based on the results of the fee study, it is not uncommon for some fees to increase while others may decrease. The most common reasons for fees to go up or down are: 1) costs changing over time, most often increasing 2) the staff performing the service changes, and/or 3) the amount of time to perform the service changes. Once the
calculations are confirmed, department staff then recommends that the fee should either
be fully recovered or subsidized. NBMC Section 3.36.030 Exhibit “A” subsidy changes are detailed in Attachment B.
In addition to the City’s cost-of-service fees, the SRFF includes fines & penalties, rents,
and other charges imposed by the City or mandated by the State of California. The amount of these charges is determined in a variety of ways, most commonly market surveys when not mandated by a higher level of government. Where changes are recommended for these non-cost-of-service components of the SRFF herein, a
description of the fee methodology and the reason(s) for a recommended change is
provided. The remainder of this report focuses on how studied fees are changing. Executive summaries and a before and after illustration of each department’s studied fees can be
found in Attachment A.
Community Development Department The department administers the City’s General Plan, as well as the City’s zoning, building, subdivision, and environmental regulations, to ensure orderly physical growth of the
community. Program activities include advance and current Planning, Building, plan
review, permit issuance, and inspection; among other things not related to cost-of-service fees. The Community Development Department (CDD) was last studied in FY 2019-20. Prior to that study, in 2016, CDD converted valuation-based residential construction permits and selected deposit-based planning permits to flat fees. There are no changes
proposed to this flat fee structure with this current study.
Building – Fees in this division are collected to recover the costs associated with plan review, permitting, and construction inspection for new and remodeled buildings and other structures. The existing permit extension fee was clarified to include permit and plan
check extensions. While staff is not proposing any new fees, the fees proposed reflect an
approximate 3% increase to align the fees with the City’s current cost of providing these services. Planning - In reviewing the overarching types of services provided by the Planning
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Division, staff proceeded with categorizing activities and staff time in services related to
current planning and advanced/long-range planning. Fee-related planning activities focus
on the review of development projects, condition compliance, and counter permits including, but not limited to: subdivisions; use permits; administrative permits; permit modifications and adjustments; sign permits; lot line adjustments/mergers; variances; etc. The fees proposed reflect an approximately 5% increase to align the fees with the City’s
current cost of providing these services. Adjustments vary depending on the specific fee
category.
In this Department, two new fees are proposed:
1.Litigation Defense Fee. This fee is proposed to be based on actual cost, on a time
and materials basis and is intended to serve as a pass-through fee that enablesthe City to fully recover its costs for projects that require external or internal supportfrom a legal capacity. In cases where legal staff time is incurred, staff proposes
utilizing the full hourly and burdened rate of personnel as well as the City and
departmental overhead rates established by the most recently completed costallocation plan in the fee calculation.
2.General Plan Maintenance Fee. The fee will be applied as five percent (5%) of
building permit fees for new construction. Amounts collected from this fee are
intended to provide roughly $170,000 per year that should be dedicated to costsassociated with maintaining and updating the City’s General Plan and supportdocuments. California Government Code Section 66014 states that fees collectedby an agency may “…may include the costs reasonably necessary to prepare and
revise the plans and policies that a local agency is required to adopt before it can
make any necessary findings and determinations.” Every county and city inCalifornia is required by State law to have a General Plan, and the plan is requiredto be updated on a regular basis. The General Plan discusses the City’s goals,policies, and implementation actions regarding all future development. The Zoning
Ordinance establishes the development regulations to implement the General Plan
and must be consistent with the plan. Cities and counties throughout Californiaoften attempt to recover portions of the costs of updating and maintaining theseplans through fees collected on various development projects. As the list belowindicates, a similar fee is currently collected by several cities in Orange County and
throughout California. The list is not intended to be comprehensive:
•Fountain Valley
•Orange
•Seal Beach
•Los Angeles
•Sacramento
•San Jose
•Huntington Beach
•Placentia
•Roseville
•San Diego
•San Leandro
•Ventura
The proposed 5% surcharge is estimated to recover 12% of the City’s estimated ongoing and future costs related to this core service area. Attachment B modifies NBMC Section
15
Fee Study Update April 13, 2023
Page 5
3.36.030 Exhibit “A” to reflect the proposed 12% cost recovery.
In addition, based on direction from the Finance Committee and City Council as part of the FY 2021-22 Fee Study, ClearSource and staff completed a comprehensive review of the structure of the City’s types of appeals and the corresponding cost recovery for both successful and unsuccessful applicants. Generally, and at the recommendation of the
Finance Committee and the City Council, the City has included a cost recovery of less
than 100% for both successful and unsuccessful applicants to not discourage potential appellants from exercising the right of appeal due to the fee(s) being cost-prohibitive. The planning application appeal fee (both to the Planning Commission and the City Council) is the only appeal fee remaining that is not refunded if the appeal is successful. On
February 23, 2023, the Planning Commission recommended modifying NBMC Section
3.36.030 Exhibit “A” to include the provision to recover 0% of planning application appeals to the Planning Commission and the City Council in cases where the applicant is successful. To further align the structure of the planning application appeal fee with the
City’s other appeal fees in cases where the applicant is unsuccessful, staff is also
modifying NBMC Section 3.36.030 Exhibit “A” to reflect a cost recovery of 50% in lieu of a flat fixed dollar amount (that was previously approximately 50%) for planning application appeals to the Planning Commission and the City Council. These proposed changes are reflected in Attachment B.
Fire Department The Fire Department provides 24-hour protection and response to the City’s residents, businesses, and visitors. The Fire Department is comprised of the following: Emergency Medical Services, Fire Operations, Junior Lifeguards, Fire Prevention, and Lifeguard
Operations. The department’s cost-of-service fees were last studied in FY 2019-20,
except for the Fire Prevention Division fees which were studied last fiscal year.
Emergency Medical Services (EMS) - The EMS division delivers high-quality emergency medical care to the community. First responders provide timely response,
evaluation, treatment, and transportation to a local hospital when necessary. Primary fees
within EMS are the fees charged for the Fire Engine and Paramedic Unit responding to 911 calls and evaluating and treating a patient. The fees primarily fall into two categories: Advanced Life Support (ALS) or Basic Life Support (BLS). Overall, the ALS with Transport and BLS with Transport fees are both proposed to increase by 2% to align both transport
fees with the current cost of providing these services. The increase was anticipated to be
of a marginal nature and more of an inflationary adjustment since these fees were more significantly adjusted as part of the FY 2019-20 fee study to capture the vehicle and equipment cost along with the cost associated with the ambulance billing service and disposable medical supplies.
Newport Beach residents and businesses have the option to participate in the Paramedic Subscription Program, known as Fire Medics, to protect themselves and their family, or employees and patrons against potential costs related to an unexpected medical emergency as outlined in NBMC Section 5.60.020. Staff is proposing to increase this fee
16
Fee Study Update April 13, 2023
Page 6
from $60 to $84 per year, which results in a net increase of $2 per month, from the current
$5 to $7. This increase is due to the increased cost of transport services. The last
subscription service fee increase occurred in 2015 by way of Resolution No. 2015-77, which increased the fee from $42 per year to the current fee of $60 per year, with a net increase of $1 per month. A separate resolution will accompany the fee resolution presented to the City Council to rescind and replace resolution No. 2019-105 to modify
this program fee.
Fire Operations/EMS – These fees are only charged when Fire and EMS staff are requested to provide safety or service for activities that do not qualify for the special event hourly rates. There is one new fee proposed for a Fire Captain Unit, which is comprised
of a Fire Captain and a suburban vehicle. By way of this fee, staff can retain operational
flexibility when dispatching units and ensure the full cost of service can be recovered when a Captain Unit is sent.
Fire Prevention – The Fire Prevention fees were most recently studied in FY 2021-22
and previously in FY 2019-20. While the fees in this division were not ordinarily due to be studied last fiscal year, these fees were reviewed due to their previously low City cost recovery. As part of the changes resulting from the fee study last fiscal year, the fees in this division were adjusted to 100% cost recovery based on a survey regarding cost
recovery percentages for similar services by other Orange County fire agencies.
The redline version of the SRFF that will be included in the fee resolution presented to the City Council will reflect an administrative reorganization and update of fees within the Fire Department’s fees in an effort to simplify the presentation of the fees as well as to
ensure the SRFF correctly captures all fees related to current operations.
There are two new fees proposed related to fire prevention inspections. In reviewing the existing fees, staff identified certain inspections where the fee collected is disproportionate to the time spent on the inspection. The inspections that warrant this
additional time involve buildings that have a larger number of floors (whether above or
below ground). The two fees are both proposed at a fee of $455 as the amount of time and the staff completing the inspections are consistent between the two services and are designed to capture the additional inspection work that is already occurring, yet not being fully recovered, for multi-level buildings as listed below:
1.Fire Prevention Inspection of a Fire Alarm System (NFPA 72): Per Story > 2 stories(includes above and below ground stories)2.Fire Prevention Inspection of Commercial Fire Sprinkler System (NFPA 13): PerStory > 2 stories (includes above and below ground stories)
As part of the fee study, a survey of other fire agencies was conducted to consider how the cost recovery for similar buildings is captured, which yielded that the Orange County Fire Authority (OCFA) has a comparable fee structure with an additional fee for each additional riser or floor in buildings greater than three stories. Similarly, these can be
17
Fee Study Update April 13, 2023
Page 7
above or below ground.
An example of when these fees would be applicable is if a senior care facility required inspection and structurally includes three stories above ground and one story below ground. The fee would be charged for the two stories above ground and the one story below. The proposed $455 fee would account of the two hours of an inspector’s time per
story and more accurately reflect the inspection time realized at these facilities.
Police Department The Police Department provides high quality police services to our community to maintain the quality of life valued by those who live, work, and recreate in Newport Beach.
Patrol/Traffic Division is the front line defense against criminal activity and quality of life
concerns, including parking enforcement, animal control, and detention services. Detective Division investigates thousands of reports taken by the Police Department each year. Support Services Division offers administrative, technical, and fleet support to the
Department. The fees in this department were last studied in FY 2019-20. A majority of
these fees are recommended for only minor inflationary adjustments, typically amounting to $10 or less, to align the fees with the current cost of providing these services.
Similar to the efforts detailed above related to Fire Prevention fees, there were
administrative updates to clarify fees.
For Fingerprinting and Citation Sign-off fees, staff is recommending the City recover less than 100% of the full cost of these services as reflected in Attachment B.
There are several new fees proposed related to Animal Control as follows:
1.Adoption Fees – staff is proposing two new fees relating to the adoption of a seniordog and a senior cat at $70 each respectively. For purposes of the adoption fees,an animal is considered senior if the animal is over eight years old. Staff is
recommending recovering less than 100% of the cost of this service as outlined in
Attachment B to encourage adoptions of older animals.2.Miscellaneous Animal Inspection Services – Court Ordered Inspections. Staff isproposing a new fee in this category to cover instances where inspections are courtordered. The proposed fee is $155 which is consistent with the existing fees in this
category relating to animal inspection services.
3.Owner Turn-In Fee – Unaltered Animal. Staff is proposing this new fee at an amountof $200, which is double the Altered Animal Owner Turn-In Fee, as previously therewas only one fee relating to animals that are turned into the shelter. However,animals that are unaltered require additional staff time and incur additional medical
expense that has otherwise been subsidized by the City. It is staff’s
recommendation that the owner turning the animal in to the shelter should coverthe costs of these expenses.4.Declared Dangerous Animal Fee. Staff is proposing a new fee of $248 for the stafftime to conduct inspections, evaluate and permit, and maintain the record related
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Fee Study Update April 13, 2023
Page 8 to animals that are declared dangerous. When a court declares an animal
dangerous, staff must complete an initial inspection and follow up review. The
proposed fee is in addition to the base animal license fee. Other Updates Even when a department is not scheduled for a comprehensive fee study, occasionally,
operations will change enough that the non-studied departments will request one or two
fee study changes for consideration and adoption. As part of this study and in an effort to present a comprehensive and thorough update on the City’s fees and current operations, staff considered the following additional updates outside of the departments scheduled to be studied.
The Finance Department is proposing to pass through parking pay-by-cell fees. The City has offered the option to pay for parking by mobile phone for over 10 years, and absorbed the transaction fees to increase customer adoption rate. This method of payment has increased in popularity, and, in FY 2021-22, represented 34% of all parking transactions in the City. For this fiscal year, the adoption rate has increased to just over 40%. Most cities pass through the transaction fees to the customer. The transaction fees will range from 15 cents to 25 cents per transaction. If the customer does not choose to pay for parking by mobile phone, they can still pay through the pay station without a transaction fee.
CPI Updates - The applicable rental fees within each studied department as well as all applicable fees listed in the SRFF that are subject to CPI increases based on prior resolutions, will be increased by CPI effective July 1, 2023. The applicable cost-of-service fees within each studied department this fiscal year will be increased by CPI effective July
1, 2024. However, the percentage by which these fees, including the rental fees referenced above, will increase is not yet known as the City’s methodology in calculating the change in CPI is by using March of the prior year to March of the current year. The proposed increases will be included in the redline version of the SRFF that will be attached to the fee resolution when the fee study update is considered by the City Council.
CONCLUSION: Subject to City Council approval of the fees as recommended, it is estimated that approximately $620,000 of additional revenues will be generated for the General Fund except for the General Plan Maintenance Fee which will be in a special fund. However,
this projection does not account for any fees where volume statistics are unavailable. The City Council’s policy of ensuring regular review of the City’s cost-of-service fees and adequate cost recover will continue to ensure adequate cost recovery from users of the City’s fee-related services. This then facilitates the redirection of general tax revenues currently subsidizing fee-supported services to maintaining and enhancing non-fee
supported services and programs. Staff will present the proposed fee recommendations to the City Council for formal consideration in May and will incorporate any feedback received from the Finance Committee into staff’s final recommendations.
19
Fee Study Update April 13, 2023
Page 9
Prepared and Submitted by:
/s/ Michael Gomez
Michael Gomez Deputy Finance Director
Attachments: A.FY 2022-23 Studied Department ChangesB.Newport Beach Municipal Code Section 3.36.030 Changes
20
ATTACHMENT A
FY 2022-23 STUDIED DEPARTMENT CHANGES
21
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
Permit Issuance Fee
1 Permit Issuance Fee $39 $40 3%$1 97%100%
2 Supplemental Permits Issuance, Fee For Each Permit $12 $12 3%$0 97%100%
3 Building Standards (SB 1473) Fee (Valuation)
a) $1 - $25,000 $1 $1
b) $25,001 - $50,000 $2 $2
c) $50,001 - $75,000 $3 $3
d) $75,001 - $100,000 $4 $4
e) Each Add'l $25,000 or fraction thereof Add $1 Add $1
4 General Plan Maintenance Fee - % of Building Permit Fee n/a 5%new fee new fee 0%12%
5 Record Management Fee - Per Sheet $2 $2 3%$0 97%100%
6 Strong Motion Instrumentation (SMI) Fee
a) Category 1 Construction (1 to 3 Story Residential)Greater of $0.50 or
valuation x .00013
Greater of $0.50 or
valuation x .00013
b) Category 2 Construction (Over 3 story Residential and all Commercial)Greater of $0.50 or
valuation x .00028
Greater of $0.50 or
valuation x .00028
7 Building Waste Management Administration Fee $27 $28 3%$1 97%100%
Description
Appendix B: p. 3 22
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
Building Permit
8 Additions of Residential Garages/Carports
a) Plan Review $423 $436 3%$13 97%100%
b) Permit & Inspection $674 $695 3%$21 97%100%
9 Fences/Retaining Walls
a) Plan Review Same As Plan
Review
Same As Plan
Review
97%100%
b) Permit & Inspection Same As Building
Permit Fee Table
Same As Building
Permit Fee Table
97%100%
10 Fire Sprinkler/Alarms/Misc.
a) Plan Review $226 $233 3%$7 97%100%
b) Permit & Inspection $274 $282 3%$8 97%100%
11 Harbor Construction
a) Plan Review $336 $346 3%$10 49%50%
b) Permit & Inspection $321 $331 3%$10 49%50%
12 Patios/Decks/Trellis
a) Plan Review $326 $336 3%$10 97%100%
b) Permit & Inspection $397 $409 3%$12 97%100%
13 Pool/Spa
a) Plan Review $404 $416 3%$12 97%100%
b) Permit & Inspection $449 $463 3%$14 97%100%
14 Re-Roof
a) Plan Review $174 $179 3%$5 97%100%
b) Permit & Inspection $358 $369 3%$11 97%100%
Appendix B: p. 4 23
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
15 Solar
a) Residential
i) 15 kW or Less:
a) Plan Review $210 $210 0%$0
b) Permit & Inspection $240 $240 0%$0
ii) More than 15 kW
a) Plan Review $210 $210 0%$0
b) Permit & Inspection
i) First 15 kW $240 $240 0%$0
ii) Each Additional kW $15 $15 0%$0
b) Commercial
i) 50 kW or Less:
a) Plan Review $460 $460 0%$0
b) Permit & Inspection $540 $540 0%$0
ii) 50 kW to 250 kW
a) Plan Review
i) First 50 kW $460 $460 0%$0
ii) Each Additional kW above 50 kW $3.22 $3.22 0%$0
b) Permit & Inspection
i) First 50 kW $540 $540 0%$0
ii) Each Additional kW above 50 kW $3.78 $3.78 0%$0
iii) More than 250 kW
a) Plan Review
i) First 250 kW $1,103 $1,103 0%$0
ii) Each Additional kW above 250 kW $2.30 $2.30 0%$0
b) Permit & Inspection
i) First 250 kW $1,297 $1,297 0%$0
ii) Each Additional kW above 250 kW $2.70 $2.70 0%$0
24
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
16 Non-Residential, Residential Alterations, Misc. Fences/Retaining Walls
a) Plan Review 87% of Building
Permit Fee
87% of Building
Permit Fee
97%100%
b) Permit & Inspection
i) $1.00 To $2,000.00 $114 $118 3%$4 97%100%
ii) $2,001.00 To $25,000.00 $115 $119 3%$4 97%100%
iii) $25,001.00 To $50,000.00 $520 $536 3%$16 97%100%
iv) $50,001.00 To $100,000.00 $843 $869 3%$26 97%100%
v) $100,001.00 To $500,000.00 $1,289 $1,329 3%$40 97%100%
vi) $500,001.00 To $1,000,000.00 $3,949 $4,071 3%$122 97%100%
vii) $1,000,001.00 to $5,000,000.00 $6,932 $7,146 3%$214 97%100%
viii) Over $5,000,000 $22,769 $23,473 3%$704 97%100%
17 One/Two Family Addition
a) Plan Review
i) 0-100 SF $867 $685 -21%($182)127%100%
ii) 101-250 SF $867 $891 3%$24 97%100%
iii) 251-500 SF $1,212 $1,233 2%$21 98%100%
iv) 501-1,000 SF $1,670 $1,713 3%$43 98%100%
v) 1,001-2,000 SF $2,471 $2,535 3%$64 97%100%
vi) 2,001-3,000 SF $3,701 $3,768 2%$67 98%100%
vii) 3,001+ SF $4,608 $4,727 3%$119 97%100%
b) Permit & Inspection
i) 0-100 SF $871 $657 -25%($214)133%100%
ii) 101-250 SF $871 $876 1%$5 99%100%
iii) 251-500 SF $1,384 $1,424 3%$40 97%100%
iv) 501-1,000 SF $2,132 $2,190 3%$58 97%100%
v) 1,001-2,000 SF $3,166 $3,285 4%$119 96%100%
vi) 2,001-3,000 SF $4,516 $4,709 4%$193 96%100%
vii) 3,001+ SF $5,775 $6,023 4%$248 96%100%
Appendix B: p. 6 25
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
18 One/Two Family Structure
a) Plan Review
i) 0-2,500 SF $3,424 $3,530 3%$106 97%100%
ii) 2,501-3,500 SF $3,893 $4,013 3%$120 97%100%
iii) 3,501-4,500 SF $5,035 $5,191 3%$156 97%100%
iv) 4,501-5,500 SF $6,169 $6,360 3%$191 97%100%
v) 5,501+ SF $7,347 $7,574 3%$227 97%100%
b) Permit & Inspection
i) 0-2,500 SF $3,803 $3,921 3%$118 97%100%
ii) 2,501-3,500 SF $5,414 $5,581 3%$167 97%100%
iii) 3,501-4,500 SF $6,014 $6,200 3%$186 97%100%
iv) 4,501-5,500 SF $6,995 $7,211 3%$216 97%100%
v) 5,501+ SF $9,547 $9,842 3%$295 97%100%
19 One/Two Family Shoring
a) Plan Review $1,036 $1,068 3%$32 97%100%
b) Permit & Inspection $621 $640 3%$19 97%100%
Appendix B: p. 7 26
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
Electrical Permit Fees
20 Combination Electrical Permit
a) Residential Construction 7% of Bldg Permit
Fee
7% of Bldg Permit
Fee
97%100%
b) Non-Residential Construction, Hotels & Apartment Bldgs over 2 story 14% of Bldg Permit
Fee
14% of Bldg Permit
Fee
97%100%
Electrical Permit Fees - Per Unit Fees
21 Residential Appliances
For fixed residential appliances or receptacle outlets for same, including wall-
mounted electric ovens; counter-mounted cooking tops; electric ranges; self-
contained room, console or through-wall air conditions; space heater; food waste
grinders; dishwashers; washing machines; water heaters; clothes dryers; or other
motor-operated appliances not exceeding 1 horsepower (HP) (746W) in rating.
$7 $7 3%$0 97%100%
22 Non-Residential Appliances
For nonresidential appliances and self-contained factory-wired, nonresidential
appliances not exceeding 1 horsepower (HP), kilowatt (kW) or kilovolt-ampere
(kVA) in rating, including medical and dental devices; food, beverage and ice cream
cabinets; illuminated show cases; drinking fountains; vending machines; laundry
machines; or other similar types of equipment.
$7 $7 3%$0 97%100%
23 Receptacle, Switch and Light Outlets
a) Fee For Each Outlets, First 20 $2 $2 3%$0 97%100%
b) Fee For Each Outlets, After First 20 $1 $1 3%$0 97%100%
c) Fee For Each Low Voltage Outlet, First 20 $2 $2 3%$0 97%100%
d) Fee For Each Low Voltage Outlet, After First 20 $1 $1 3%$0 97%100%
24 Lighting Fixtures
a) Fee For Each Lighting Fixtures, First 20 $2 $2 3%$0 97%100%
b) Fee For Each Lighting Fixture, After 20 $1 $1 3%$0 97%100%
c) Fee For Each Pole or Platform-Mounted Lighting Fixtures $2 $2 3%$0 97%100%
d) Fee For Each Theatrical-type Lighting Fixtures Or Assemblies $2 $2 3%$0 97%100%
Appendix B: p. 8 27
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
25 Power Apparatus (each)
Rating in horsepower (HP), kilowatts (kW), kilovolt-amperes (kVA), or kilovolt-a) Up to and including 1 $7 $7 3%$0 97%100%
b) Over 1 and Not Over 10 $20 $21 3%$1 97%100%
c) Over 10 and Not Over 50 $40 $41 3%$1 97%100%
d) Over 50 and Not Over 100 $78 $80 3%$2 97%100%
e) Over 100 $119 $123 3%$4 97%100%
26 Busways
Each 100 ft. or Fraction Thereof For Trolley & Plug-in Type
Additional Fees For Other Fixtures Connected To The Trolley
$11 $11 3%$0 97%100%
27 Signs, Outline Lighting and Marquees - Each
Supplied from one branch circuit
$42 $43 3%$1 97%100%
28 Services (Service Change)
a) 600 Volts or Less and Not Over 200 Amperes in Rating $48 $49 3%$1 97%100%
b) 600 Volts or Less and Over 200 Amperes to 1,000 Amperes $99 $102 3%$3 97%100%
c) Over 600 Volts or Over 1,000 Amperes in Rating $196 $202 3%$6 97%100%
29 Miscellaneous Apparatus, Conduits and Conductors
For electrical apparatus, conduits and conductors for which a permit is required but
for which no fee is herein set forth.
$29 $30 3%$1 97%100%
Carnivals and Circuses
30 Special Event, Each Generator, Electrical $42 $43 3%$1 97%100%
31 Special Event Lighting $11 $11 3%$0 97%100%
Temporary Power Service
32 Temporary Power Service $42 $43 3%$1 97%100%
33 Fee For Each Temporary Service Pedestal $42 $43 3%$1 97%100%
34 Fee For Each Temp. Distribution System, Lighting, Outlet, Decorative Site, Temp
Receptacles, Switches And Lighting Outlets In Which Current Is Controlled (Except
Services, Feeders, Meters)
$21 $22 3%$1 97%100%
Electrical Plan Review
35 Electrical Plan Review 87% of Total
Electrical Permit
Fee
87% of Total
Electrical Permit
Fee
97%100%
Appendix B: p. 9 28
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
Mechanical Permit Fees
36 Combination Mechanical Permit
a) Residential Construction 4% of Bldg Permit
Fee
4% of Bldg Permit
Fee
97%100%
b) Non-Residential Construction, Hotels & Apartment Bldgs over 2 story 11% of Bldg Permit
Fee
11% of Bldg Permit
Fee
97%100%
Mechanical Permit Fee - Per Unit Fees
37 Furnaces
a) For the installation or relocation of each forced-air or gravity-type furnace or
burner, including ducts and vents attached to such appliancei) Up to and including 100,000 Btu/h $22 $23 3%$1 97%100%
ii) Over 100,000 Btu/h $26 $27 3%$1 97%100%
b) Fee For Each Floor Furnace, Including Vent $22 $23 3%$1 97%100%
c) Fee For Each Suspended Heater, Recessed Wall Heater or Floor-Mounted Unit
Heater
$22 $23 3%$1 97%100%
38 Appliance Vents
Fee For Each Installation, Relocation, Replacement of Appliance Vent
$11 $11 3%$0 97%100%
39 Repairs or Additions
Fee For Each Repair, Alteration of, or Addition to Heating / Cooling Appliances
$22 $23 3%$1 97%100%
40 Boilers, Compressors and Absorption Systems
a) Fee For Each Boiler or Compressor to and Including 3 HP $22 $23 3%$1 97%100%
b) Fee For Each Absorption System to and Including 100,000 Btu/h $22 $23 3%$1 97%100%
c) Fee For Each Boiler or Compressor Over 3 HP to and including 15 HP $40 $41 3%$1 97%100%
d) Fee For Each Absorption Sys. Over 100,000 Btu/h & including 500,000 Btu/h $40 $41 3%$1 97%100%
e) Fee For Each Boiler or Compressor Over 15 HP to and including 30 HP $55 $57 3%$2 97%100%
f) Fee For Each Absorption Sys. Over 500,000 Btu/h & including 1,000,000 Btu/h $55 $57 3%$2 97%100%
g) Fee For Each Boiler or Compressor Over 30 HP to and including 50 HP $82 $85 3%$3 97%100%
h) Fee For Each Absorption Sys. Over 1,000,000 Btu/h including 1,750,000 Btu/h $82 $85 3%$3 97%100%
i) Fee For Each Boiler or Compressor over 50 HP $139 $143 3%$4 97%100%
j) Fee For Each Absorption System Over 1,750,000 Btu/h $139 $143 3%$4 97%100%
41 Air Handlers
a) Fee For Each Air handling Unit To & Including 10,000 Cu Ft/Min Including
Attached Ducts
$15 $15 3%$0 97%100%
b) Fee For Each Air Handling Unit Over 10,000 cfm $26 $27 3%$1 97%100%
Appendix B: p. 10 29
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
42 Evaporative Cooler
Fee For Each Evaporative Cooler Other Than Portable Type
$15 $15 3%$0 97%100%
Ventilation and Exhaust
43 Fee For Each Ventilation Fan Connected to a Single Duct $11 $11 3%$0 97%100%
44 Fee For Each Ventilation System Not Connected to Any Other System $15 $15 3%$0 97%100%
45 Fee For Each Hood Served by Mech Exhaust, Including Ducts $15 $15 3%$0 97%100%
Incinerators
46 Fee For Each Domestic Type Incinerator $26 $27 3%$1 97%100%
47 Fee For Each Commercial or Industrial Type Incinerator $112 $115 3%$3 97%100%
Miscellaneous
48 For each appliance or piece of equipment regulated by the Mechanical Code but not
classed in other appliance categories, or for which other fee is listed in the table.
$15 $15 3%$0 97%100%
Mechanical Plan Review
49 Mechanical Plan Review 87% of Total
Mechanical Permit
Fee
87% of Total
Mechanical Permit
Fee
97%100%
Appendix B: p. 11 30
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
Plumbing Permit Fees
50 Combination Plumbing Permit
a) Residential Construction 9% of Bldg Permit
Fee
9% of Bldg Permit
Fee
100%
b) Non-Residential Construction, Hotels & Apartment Bldgs over 2 story 9% of Bldg Permit
Fee
9% of Bldg Permit
Fee
100%
Plumbing Permit Fees - Per Unit Fees
51 Fee For Each Plumbing Fixture, Trap, Set of Fixtures on One Trap $16 $16 3%$0 97%100%
52 Fee For Each Building Sewer, Trailer Park Sewer $40 $41 3%$1 97%100%
53 Fee Per Drain In Rainwater Systems $16 $16 3%$0 97%100%
54 Fee For Each Cesspool $58 $60 3%$2 97%100%
55 Fee For Each Private Sewage Disposal System $118 $122 3%$4 97%100%
56 Fee For Each Industrial Waste Pretreatment Interceptor, Excepting Kitchen Type
Grease Inter. Functioning As Fixture Traps
$31 $32 3%$1 97%100%
57 Fee For Each Water Piping, Water Treating Equipment $8 $8 3%$0 97%100%
58 Fee For Each Drainage or Vent Piping Fixture $8 $8 3%$0 97%100%
59 Fee For Each Lawn Sprinkler System on One Meter, Backflow Protection Dev.$23 $24 3%$1 97%100%
60 Atmospheric Type Vacuum Breakers
a) 1 To 5 Atmospheric Type Vacuum Breakers $18 $19 3%$1 97%100%
b) Each Additional, In Excess of Five $4 $4 3%$0 97%100%
61 Backflow Protective Device
a) 2 Inches & Smaller - Each $18 $19 3%$1 97%100%
b) Over 2 Inches - Each $40 $41 3%$1 97%100%
62 Gas Piping System
a) One to Four Outlets $8 $8 3%$0 97%100%
b) Each Additional Outlet $2 $2 3%$0 97%100%
63 Water Heater and/or Vent Permit - Each $32 $33 3%$1 97%100%
Plumbing Plan Review
64 Plumbing Plan Review 87% of Total
Plumbing Permit
Fee
87% of Total
Plumbing Permit
Fee
97%100%
Appendix B: p. 12 31
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
Grading, Drainage, and Water Quality Management
Grading
65 Grading Plan Review
a) Grading Plan Review by City Staff 87% of Grading
Permit Fee
87% of Grading
Permit Fee
97%100%
b) Grading Plan Review of Complex Projects by Consultant 133% of Consultant
Fee
133% of Consultant
Fee
100%100%
66 Grading Permit Fee - Calculated based on cut or fill which ever is greater
a) 0-200 Cubic Yards $992 $1,023 3%$31 97%100%
b) 201-300 Cubic Yards $1,017 $1,048 3%$31 97%100%
c) 301-400 Cubic Yards $1,041 $1,073 3%$32 97%100%
d) 401-500 Cubic Yards $1,067 $1,100 3%$33 97%100%
e) 501-600 Cubic Yards $1,114 $1,148 3%$34 97%100%
f) 601-700 Cubic Yards $1,161 $1,197 3%$36 97%100%
g) 701-800 Cubic Yards $1,211 $1,248 3%$37 97%100%
h) 801-900 Cubic Yards $1,258 $1,297 3%$39 97%100%
i) 901-1,000 Cubic Yards $1,306 $1,346 3%$40 97%100%
j) 1,001-10,000 Cubic Yards $1,311 $1,352 3%$41 97%100%
k) 10,001-100,000 Cubic Yards $5,418 $5,586 3%$168 97%100%
l) 100,001 Cubic Yards or more $9,651 $9,949 3%$298 97%100%
67 Grading Permit Fees (Based on Site Improvements)
Curb & Gutter, Paving, Erosion Control
Same As Building
Permit Fee Table
Same As Building
Permit Fee Table
97%100%
68 Grading Bond Fee $464 $478 3%$14 97%100%
Drainage
69 Alteration to Drainage
a) Plan Review $203 $209 3%$6 97%100%
b) Permit & Inspection $242 $249 3%$7 97%100%
Water Quality Management
70 Water Quality Management - Commercial Projects
a) Plan Review $281 $290 3%$9 97%100%
b) Permit & Inspection $357 $368 3%$11 97%100%
71 Water Quality Management - Residential Projects
a) Plan Review $195 $201 3%$6 97%100%
b) Permit & Inspection $289 $298 3%$9 97%100%
Appendix B: p. 13 32
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
Other
Accessibility Hardship
72 Accessibility Hardship $1,259 $1,298 3%$39 97%100%
73 Appeals
a) Appeals Board Hearing - Applicant Unsuccessful $1,715 $1,768 3%$53 49%50%
b) Appeals Board Hearing - Applicant Successful $0 $0 0%$0 0%0%
Certificates and Reports
74 Temporary Certificate of Occupancy $236 $243 3%$7 97%100%
75 Temporary Certificate of Occupancy - Renewable $125 $129 3%$4 97%100%
76 Residential Building Report
a) Residential Building Report - Any Occupancy Type $202 $208 3%$6 97%100%
b) Residential Building Report - Re-Inspection $134 $138 3%$4 97%100%
77 Real Property Document Prep/Transfer/Assign/Ext $298 $307 3%$9 97%100%
Demolition
78 Demolition - Multi-Family Structure
a) Plan Review $329 $339 3%$10 97%100%
b) Permit & Inspection $115 $119 3%$4 97%100%
79 Demolition - One Family Structure
a) Plan Review $329 $339 3%$10 97%100%
b) Permit & Inspection $138 $142 3%$4 97%100%
80 Demolition - Other Than Structure
a) Plan Review $334 $344 3%$10 97%100%
b) Permit & Inspection $125 $129 3%$4 97%100%
Duplicate Drawings
81 Authorization to duplicate record drawings $40 $41 3%$1 97%100%
82 Extension: 3-Year Building Permit Extension
a) Request to Building Official $208 $214 3%$6 97%100%
b) Request to Hearing Officer $1,379 $1,422 3%$43 97%100%
Appendix B: p. 14 33
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
Flood Zone Determination
83 Flood Zone Determination $117 $121 3%$4 97%100%
84 Special Inspector Licenses
a) Original Licenses Each Test - Per Classification $115 $119 3%$4 97%100%
b) Renewal - Per Classification $56 $58 3%$2 97%100%
Other Inspections Fees
85 Off-Hours Inspection Request - Per Hour, 2 Hour Minimum $251 $259 3%$8 97%100%
86 Other Inspections - Per Hour
Inspections Not Otherwise Specified / One Hour Minimum
$213 $220 3%$7 97%100%
87 Re-Inspection - Per Hour
Assessed When Corrections Are Not Completed
$213 $220 3%$7 97%100%
Other Plan Review Fees
88 Alternate Materials & Methods Each Item $297 $306 3%$9 97%100%
89 Determination of Unreasonable Hardship $364 $375 3%$11 97%100%
90 Disabled Access Compliance Review 0.1% of
Construction Cost
0.1% of
Construction Cost
97%100%
91 Energy Compliance Review 0.07% of
Construction Cost
0.07% of
Construction Cost
97%100%
92 Expedite Plan Review 1.75 X Regular Plan
Review Fees, $453
minimum
1.75 X Regular Plan
Review Fees, $479
minimum
97%100%
93 Plan Check / Permit Extension $69 $71 3%$2 97%100%
94 Repetitive Plan Review
Similar Units In Tracts Containing More Than 5 Units After Model When Full Fee Is
Paid For Model
25% of Plan Review
Fee
25% of Plan Review
Fee
97%100%
95 Plan Check Hourly Rate - Per Hour $266 $274 3%$8 97%100%
Appendix B: p. 15 34
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - PLANNING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis Note
Amendment
1 Amendment - General Plan $271 $272 0%$1 100%100%Per Hour (Deposit Account)
2 Amendment - Local Coastal Program $271 $272 0%$1 100%100%Per Hour (Deposit Account)
3 Amendment - Planned Community $271 $272 0%$1 100%100%Per Hour (Deposit Account)
4 Amendment - Zoning Code/Specific Plan $271 $272 0%$1 100%100%Per Hour (Deposit Account)
Appeal
5 Appeal to City Council
a) Applicant Successful $1,715 $0 -100%($1,715)41%0%Fixed Fee
b) Applicant Unsuccessful $1,715 $2,116 23%$401 41%50%Fixed Fee
6 Appeal to Planning Commission
a) Applicant Successful $1,715 $0 -100%($1,715)41%0%Fixed Fee
b) Applicant Unsuccessful $1,715 $2,116 23%$401 41%50%Fixed Fee
7 Appeal of Coastal Development Permit Application
Decision to Planning Commission
$0 $0 0%$0 0%0%Fixed Fee
8 Appeal of Decision to Harbor Commission
a) Applicant Successful $0 $0 0%$0 0%0%Fixed Fee
b) Applicant Unsuccessful $1,250 $1,250 0%$0 70%70%Fixed Fee
9 Appeal of Harbor Commission Decision to City
Council
a) Applicant Successful $0 $0 0%$0 0%0%Fixed Fee
b) Applicant Unsuccessful $940 $940 0%$0 61%61%Fixed Fee
Approval in Concept
10 Approval in Concept $934 $1,008 8%$74 93%100%Fixed Fee
Banner Permit
11 Banner Permit $59 $59 0%$0 100%100%Fixed Fee
Certificate of Compliance
12 Certificate of Compliance - Subdivision Code $373 $389 4%$16 96%100%Fixed Fee
Description
Appendix B: p. 16 35
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - PLANNING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
Coastal Development Permit
13 Coastal Development Permit (CDP) - Stand Alone $2,407 $2,537 5%$130 95%100%Fixed Fee
14 Coastal Development Permit (CDP) / Parcel Map
Bundle
$3,448 $3,559 3%$111 97%100%Fixed Fee
15 Coastal Development Permit (CDP) - When Reviewed
In Conjunction with Another Planning Application
hourly $968 varies varies 100%100%Fixed Fee
16 Coastal Development Permit (CDP) - All Others $271 $272 0%$1 100%100%Per Hour (Deposit Account)
17 Coastal Development Permit (CDP) Waiver $1,219 $1,287 6%$68 95%100%Fixed Fee
Compliance Letters / Minor Records Research
18 Compliance Letters / Minor Records Research $398 $412 4%$14 97%100%Fixed Fee
Comprehensive Sign/ Heritage / Innovative Permit
19 Comprehensive Sign/ Heritage / Innovative Permit $2,011 $2,344 17%$333 86%100%Fixed Fee
Condominium Conversion Permit
20 Condominium Conversion Permit $1,382 $1,539 11%$157 90%100%Fixed Fee
Development Agreement / Plan
21 Development Agreement Adoption $271 $272 0%$1 100%100%Per Hour (Deposit Account)
22 Development Agreement Annual Review $1,425 $1,560 9%$135 91%100%Fixed Fee
23 Development Plan - Planned Community $271 $272 0%$1 100%100%Per Hour (Deposit Account)
Director / Staff Approval
24 Director / Staff Approval $1,002 $1,110 11%$108 90%100%Fixed Fee
Environmental Documents
25 Environmental Documents 110% of Consultant
Cost
Consultant Cost +
10% City
Administrative Fee
0%$0 100%100%Fixed Fee
Extension of Time
26 Extension of Time - Subdivision Code $175 $206 18%$31 85%100%Fixed Fee
27 Extension of Time - ZC (except Abatement Period)$175 $206 18%$31 85%100%Fixed Fee
28 Extension of Time - Non-Conforming Abatement
Period Extension
$712 $826 16%$114 86%100%Fixed Fee
Appendix B: p. 17 36
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - PLANNING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
In-Lieu Parking
29 In-Lieu Parking $150 $150 Fixed Fee - Per Space
Limited Term Permits
30 Limited Term Permit - Less than 90 days $663 $723 9%$60 92%100%Fixed Fee
31 Limited Term Permit - More than 90 days $2,279 $2,434 7%$155 94%100%Fixed Fee
32 Limited Term Permit - Seasonal Sale $315 $388 23%$73 81%100%Fixed Fee
Lot Line Adjustment / Lot Merger
33 Lot Line Adjustment $2,362 $2,434 3%$72 97%100%Fixed Fee
34 Lot Merger $2,362 $2,434 3%$72 97%100%Fixed Fee
Modification Permit
35 Modification Permit $3,284 $3,383 3%$99 97%100%Fixed Fee
Operators License
36 Operators License Application $993 $1,000 1%$7 99%100%Fixed Fee
37 Operators License Appeal $965 $1,000 4%$35 97%100%Fixed Fee
Planned Development Permit
38 Planned Development Permit $6,513 $6,962 7%$449 94%100%Fixed Fee
Preliminary Application for Residential Development
39 Preliminary Application for Residential Development $792 $1,490 88%$698 53%100%Fixed Fee
Public Noticing
40 Public Noticing $518 $538 4%$20 96%100%Fixed Fee
Reasonable Accommodation
41 Reasonable Accommodation $0 $0 0%$0 0%0%Fixed Fee
Site Development Review
42 Site Development Review - Planning Commission $5,892 $6,119 4%$227 96%100%Fixed Fee
43 Site Development Review - Zoning Administrator $3,359 $3,550 6%$191 95%100%Fixed Fee
Appendix B: p. 18 37
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - PLANNING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
Subdivision / Mapping
44 Subdivisions - Parcel Map $2,347 $2,378 1%$31 99%100%Fixed Fee
45 Subdivisions - Tentative Tract Map $5,798 $6,119 6%$321 95%100%Fixed Fee
46 Subdivisions - Vesting Tentative Map $5,798 $6,119 6%$321 95%100%Fixed Fee
Transfer of Development Rights
47 Transfer of Development Rights $4,580 $5,030 10%$450 91%100%Fixed Fee
Use Permit
48 Use Permit (Conditional) - Planning Commission $5,954 $6,109 3%$155 97%100%Fixed Fee
49 Use Permit (Minor) - Zoning Administrator $3,358 $3,416 2%$58 98%100%Fixed Fee
Variance
50 Variance $5,487 $5,603 2%$116 98%100%Fixed Fee
Zoning Plan Check
51 Zoning Plan Check (Non-Residential and Residential
Alterations)
$212 $215 1%$3 99%100%Per Hour
Litigation Defense
52 Litigation Defense 100% of Actual
Costs
100%Time & Materials
Hourly Billing Rate for Services Not Listed
53 Planning $271 $272 0%$1 100%100%Per Hour
54 Consulting Support, Specialized Services, Peer
Review, etc.
110% of Consultant
Cost
Consultant Cost +
10% City
Administrative Fee
100%100%
55 Fees/Costs Collected on Behalf of Other Agencies
(e.g. LAFCO, Department of Fish & Wildlife, etc.)
Pass-Through Pass-Through
Appendix B: p. 19 38
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - FIRE PREVENTION FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis Note
1 Closure Report Review $228 $235 3%$7 97%100%Per Hour; 1 Hour Min.
2 Fire, Life Safety Or Special Hazard Consultation $228 $235 3%$7 97%100%Per Hour; 1 Hour Min.
3 Pre-submittal Review
Includes CEQA, EIR, and advanced planning requests
$228 $235 3%$7 97%100%Per Hour; 1 Hour Min.
4 Reinspection or Special Inspection $238 $240 1%$2 99%100%
5 Weekend, Holiday, or Non Contiguous & After Hours Inspection
Request
$225 $235 4%$10 96%100%2 Hour Minimum;
Hourly if contiguous to
normal business hours.
6 Technical Assistance of Complex Fire Protection Systems
Code Compliance Review - Plan Review and/or Inspection
Services
$228 $235 3%$7 97%100%Per Hour; 1 Hour Min.
Fire Prevention - Fuel Modification New and/or Change to
Existing Plan
7 Inspection $138 $143 4%$5 96%100%
8 Plan Review/Update $140 $144 3%$4 97%100%
Fire Prevention - Inspection
9 All Assembly (A), Factory (F) < or equal to 3,000 square feet
(also used for Business (B),Mercantile (M), and Storage (S)
occupancies when required)
$338 $348 3%$10 97%100%
10 All Assembly (A), Factory (F) > 3,000 < or equal to 10,000
square feet aggregate (also used for Business (B),Mercantile
(M), and Storage (S) occupancies when required)
$438 $455 4%$17 96%100%
11 All Assembly (A), Factory (F)>10,000 s.f. aggregate (also used for
Business (B),Mercantile (M), and Storage (S) occupancies when
required)
$637 $670 5%$33 95%100%
12 Day Care Educational (E) or Institutional Day Care (I-4)$463 $480 4%$17 96%100%
13 Educational other than day care $463 $480 4%$17 96%100%
14 High-Hazard Groups H1, H2, H3, H4, H5, or Laboratory ( L)
(Chemical Classification Technical Report Review fee also
required)
$537 $563 5%$26 95%100%
15 Hi-Rise: Structures that are 75 ft. or higher measured from
lowest point of fire department access
$1,664 $1,764 6%$100 94%100%
Description
Appendix B: p. 20 39
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - FIRE PREVENTION FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
16 Misc. Inspection including elevators, elevator lobbies,
generators, canopies, awnings
$225 $235 4%$10 96%100%Per Hour; 1 Hour Min.
17 Residential R1 or R2: Hotels, motels, apartments, condominiums
(Base Fee)
$367 $366 0%($1)100%100%
18 Residential R1 or R2: Hotels, motels, apartments, condominiums
(Per Unit, Per Building)
$9 $11 19%$2 84%100%
19 Residential R4: licensed residential care/assisted living facilities
and similar uses serving 7-19 clients
$537 $563 5%$26 95%100%
20 Residential R4: licensed residential care/assisted living facilities
and similar uses serving >19 clients
$788 $828 5%$40 95%100%
21 Commercial Battery: Inspection $238 $240 1%$2 99%100%
22 Fire Lane Inspection (Fire Master Plan)$228 $235 3%$7 97%100%Per Hour; 1 Hour Min.
23 Fire Access Gates: Inspection $162 $161 0%($1)100%100%
24 Tank Installation Or Removal: Inspection
Above or Below Ground (Per Tank)
$438 $455 4%$17 96%100%
25 Defensible Space Inspection $225 $235 4%$10 96%100%Per Hour
26 Nuisance Abatement Service
'Weeds, Rubbish And Other Nuisance
$225 $235 4%$10 96%100%Per Hour
Fire Prevention - Inspection Fire Alarm Systems
27 Fire alarm system: Base Fee $238 $240 1%$2 99%100%
28 Fire alarm system: Per Device $3.25 $3.50 8%$0.25 91%98%
29 Fire alarm system: Per Story Greater than 2 stories (Includes
Above and Below Ground Stories)
n/a - new $455 n/a - new 0%100%
Fire Prevention - Inspection Fixed Fire Extinguishing Systems
30 Commercial fire sprinkler system (NFPA 13): Base per head With
1 Riser
$238 $240 1%$2 99%100%
31 Commercial fire sprinkler system (NFPA 13) : each add'l head $3.25 $3.50 8%$0.25 91%98%
32 Commercial fire sprinkler system (NFPA 13): Each Additional
Commercial Riser
$125 $133 6%$8 94%100%
33 Commercial fire sprinkler system (NFPA 13): Per Story Greater
than 2 stories (Includes Above and Below Ground Stories)
n/a - new $455 n/a - new 0%100%
34 Fire pump installation $438 $455 4%$17 96%100%
35 Fire sprinkler monitoring system, water flow & tamper switches $288 $294 2%$6 98%100%
Appendix B: p. 21 40
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - FIRE PREVENTION FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
36 Multi-family dwelling residential fire sprinkler system (NFPA
13R) (Base Fee)
$238 $240 1%$2 99%100%
37 Multi-family dwelling residential fire sprinkler system (NFPA
13R) (per unit)
$3.25 $3.50 8%$0.25 91%98%
38 Standpipes : NFPA 14 Class I, II or III and includes all standpipes
within a single building or boat dock
$537 $563 5%$26 95%100%
39 Tenant Improvement (TI) NFPA 13 or 13R fire sprinkler system:
base fee
$188 $186 -1%($2)101%100%
40 Tenant Improvement (TI) NFPA 13 or 13R fire sprinkler system:
per head
$3.25 $3.50 8%$0.25 91%98%
41 Underground fire protection - New $438 $455 4%$17 96%100%
42 Underground fire protection - Repair $338 $348 3%$10 97%100%
Fire Prevention - Inspection Special Fire Protection Equipment
43 Commercial Cooking Hood and Duct (per system)$238 $240 1%$2 99%100%
44 Pre-action fire sprinkler system, includes alarm system $288 $294 2%$6 98%100%
45 Special extinguishing system: dry chemical, CO2, foam liquid
system, inert gas (Halon, Inergen, etc.)
$238 $240 1%$2 99%100%
46 Spray Booth, Spraying area $438 $455 4%$17 96%100%
Fire Prevention - Operational and Special Event Permits
47 Candle Permit Program
First time and special event
$57 $63 10%$6 91%100%
48 Operational Permits Level 1 - New or Renewal - Annual
Cutting and welding carts, Dry cleaning plants – 1 to 2 machines,
Liquefied petroleum gases , and Tents
$236 $254 8%$18 93%100%
49 Operational Permits Level 2 - New or Renewal - Annual
All other operations pursuant to CFC Section 105.6
$445 $476 7%$31 93%100%
50 Special Event Permits
Single Event Permit
$193 $204 6%$11 94%100%
51 Special Event Permits
Level III as defined by the Recreation Department
$225 $235 4%$10 96%100%Per Hour
52 Special Event Permits
Public Display - Fireworks - ground display only e.g.
homecoming 5-10 minutes
$377 $401 6%$24 94%100%
53 Special Event Permits
Public Display - Fireworks - aerial display > 10 minutes
$985 $1,054 7%$69 93%100%
Appendix B: p. 22 41
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - FIRE PREVENTION FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
54 Temporary Change Of Use
Use Of Retail Occupancy as a place of assembly - Special Use
$228 $235 3%$7 97%100%Per Hour
55 Weekend, Holiday, or Non Contiguous & After Hours Inspection
Request
$225 $235 4%$10 96%100%2 Hour Minimum;
Hourly if contiguous to
normal business hours.
Fire Prevention - Plan Review
56 All Assembly (A), Factory (F) < or equal to 3000 square feet (also
used for Business (B), Mercantile (M), and Storage (S)
occupancies when required) 2016 CBC
$545 $618 13%$73 88%100%
57 All Assembly (A), Factory (F) > 3,000 < or equal to 10,000
square feet aggregate (also used for Business (B), Mercantile
(M), and Storage (S) occupancies when required)
$713 $815 14%$102 87%100%
58 All Assembly (A), Factory (F)>10,000 s.f. aggregate (also used for
Business (B), Mercantile (M), and Storage (S) occupancies when
required)
$900 $1,024 14%$124 88%100%
59 Daycare Educational (E) or Institutional Daycare (I-4)$443 $499 13%$56 89%100%
60 Educational other than day care $545 $618 13%$73 88%100%
61 High-Hazard Groups H1, H2, H3, H4, or Laboratory ( L) (Chemical
Classification Technical Report Review fee also required)
$1,537 $1,724 12%$187 89%100%
62 Hi-Rise: Structures that are 75 ft. or higher measured from
lowest point of fire department access
$3,561 $4,094 15%$533 87%100%
63 Misc. Plan Review including elevators, elevator lobbies,
generators, canopies, awnings
$228 $235 3%$7 97%100%Per Hour
64 Residential R1 or R2: Hotels, motels, apartments, condominiums
(Base Fee)
$242 $253 5%$11 96%100%
65 Residential R1 or R2: Hotels, motels, apartments, condominiums
(Per Unit, Per Building)
$8 $10 23%$2 81%100%
66 Residential R4: licensed residential care/assisted living facilities
and similar uses serving 7-19 clients
$910 $1,020 12%$110 89%100%
67 Residential R4: licensed residential care/assisted living facilities
and similar uses serving >19 clients
$1,537 $1,724 12%$187 89%100%
68 Commercial Battery: Plan Review $241 $262 9%$21 92%100%
69 Fire Lane Plan Review (Fire Master Plan)$228 $235 3%$7 97%100%Per Hour; 1 Hour Min.
70 Fire Access Gates: Plan Review $190 $203 7%$13 94%100%
Appendix B: p. 23 42
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - FIRE PREVENTION FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
71 Tank Installation Or Removal: Plan Review
Above or Below Ground (Per Tank)
$342 $381 11%$39 90%100%
72 Emergency Responder Communication Coverage In Service
Building Public Radio Coverage System Service in Private
Structures - Service to privately owned bi-directional
amplification systems by the Orange County Sheriff-Coroner
Communications Division on behalf of the City Police and Fire
Departments.
$427 $477 12%$50 89%100%
Fire Prevention - Plan Review Fire Alarm Systems
73 Fire alarm system: Base Fee $190 $203 7%$13 94%100%
74 Fire alarm system: Per Device $2.50 $3.00 20%$0.50 79%95%
Fire Prevention - Plan Review Fixed Fire Extinguishing Systems
75 Commercial fire sprinkler system (NFPA 13): Base Fee $190 $203 7%$13 94%100%
76 Commercial fire sprinkler system (NFPA 13) : each add'l head $3.25 $3.75 15%$0.50 82%95%
77 Fire pump installation $443 $499 13%$56 89%100%
78 Fire sprinkler monitoring system, water flow & tamper switches $165 $178 8%$13 93%100%
79 Multi-family dwelling residential fire sprinkler system (NFPA
13R) (Base Fee)
$190 $203 7%$13 94%100%
80 Multi-family dwelling residential fire sprinkler system (NFPA
13R) (per unit)
$3.25 $3.75 15%$0.50 82%95%
81 Standpipes : NFPA 14 Class I, II or III and includes all standpipes
within a single building or boat dock
$443 $499 13%$56 89%100%
82 Tenant Improvement (TI) NFPA 13 or 13R fire sprinkler system:
base fee
$140 $144 3%$4 97%100%
83 Tenant Improvement (TI) NFPA 13 or 13R fire sprinkler system:
per head
$2.50 $2.75 10%$0.25 84%93%
84 Underground fire protection - New $376 $420 12%$44 89%100%
85 Underground fire protection - Repair $190 $203 7%$13 94%100%
Appendix B: p. 24 43
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - FIRE PREVENTION FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
Fire Prevention - Plan Review Special Fire Protection
Equipment
86 Commercial Cooking Hood and Duct (per system)$140 $144 3%$4 97%100%
87 Pre-action fire sprinkler system, includes alarm system $545 $618 13%$73 88%100%
88 Special extinguishing system: dry chemical, CO2, foam liquid
system, inert gas (Halon, Inergen, etc.)
$292 $321 10%$29 91%100%
89 Spray Booth, Spraying area $545 $618 13%$73 88%100%
Fire Prevention - Staff
90 Life Safety Specialist II $199 $235 18%$36 85%100%1 Hr. Minimum To The
Nearest 15 Min.
Increment Over 1 Hr.,
Fee Per Hour
91 Life Safety Specialist III $202 $235 16%$33 86%100%1 Hr. Minimum To The
Nearest 15 Min.
Increment Over 1 Hr.,
Fee Per Hour
Fire Prevention - State Mandated Inspections
92 Care Facilities
7-99 clients as defined in the California Building Code
$226 $240 6%$14 94%100%Annual Fee
93 Care Facilities
> 99 clients as defined in the California Building Code
$442 $473 7%$31 93%100%Annual Fee
94 Commercial Day Care Facilities $260 $276 6%$16 94%100%Annual Fee
95 High Rise Buildings $1,302 $1,333 2%$31 98%100%Annual Fee
96 Hospitals
200 Or More Beds
$8,316 $8,952 8%$635 93%100%Annual Fee
97 Hotels/Motels
50 - 299 Rooms
$260 $276 6%$16 94%100%Annual Fee
98 Hotels/Motels
300 Or More Rooms
$442 $473 7%$31 93%100%Annual Fee
99 Residential Care Facility Pre-License Inspection
California Health and Safety Code Section 13235
$312 $323 3%$11 97%100%
100 State Fire Clearance
Requests for commercial occupancies, Clinics, Offices, and
Treatment Facilities
$111 $115 3%$4 97%100%
101 Surgery Centers $476 $509 7%$33 94%100%Annual Fee
Appendix B: p. 25 44
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - FIRE EMS FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis Note
Fire Operations and EMS Staff
1 Fire Captain Unit (one person)$391 100%per hour; fee billed to nearest 15-minute
increment; 1-hour minimum
2 Battalion Chief Unit (one person)$504 $521 3%$17 97%100%per hour; fee billed to nearest 15-minute
increment; 1-hour minimum
3 Paramedic Unit (two persons)$710 $716 1%$6 99%100%per hour; fee billed to nearest 15-minute
increment; 1-hour minimum
4 Fire Engine (three persons)$1,000 $1,020 2%$20 98%100%per hour; fee billed to nearest 15-minute
increment; 1-hour minimum
5 Fire Truck (four persons)$1,276 $1,316 3%$40 97%100%per hour; fee billed to nearest 15-minute
increment; 1-hour minimum
6 Firefighter (per person)$275 $296 8%$21 93%100%per hour; fee billed to nearest 15-minute
increment; 1-hour minimum
7 Paramedic Assessment Unit (PAU) Engine $1,080 $1,087 1%$7 99%100%per hour; fee billed to nearest 15-minute
increment; 1-hour minimum
ALS / BLS Response
1 Advanced Life Support (ALS)$1,364 $1,392 2%$28 98%100%per transport
2 Basic Life Support (BLS)$1,358 $1,392 2%$34 98%100%per transport
3 Emergency Ambulance Transportation $512 $524 2%$12 98%100%per transport
4 Advanced Life Support Non-Transport $400 $400 0%$0 30%30%per response
5 Basic Life Support Non-Transport $400 $400 0%$0 30%30%per response
6 Emergency Ambulance Transportation
Mileage Charge
$9 $10 11%$1 90%100%per mile
7 ALS First Responder Fee $400 $400 0%$0 43%43%per response
8 BLS First Responder Fee $400 $400 0%$0 43%43%per response
9 Paramedic Subscription Service - Annual
Fee - Resident
$60 $84 40%$24 varies varies per year [a]
10 Paramedic Subscription Service - Business
+ 10 owners and employees
$60 $84 40%$24 varies varies per year [a]
11 Paramedic Subscription Service - Business,
each additional 10 owners and employees
(maximum 150)
$25 $25 0%$0 varies varies per year
[a] Proposed fee effective January 1, 2024.
Description
Appendix B: p. 26
45
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - POLICE FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis Note
Subpoena Fees
1 Civil Subpoena
a) All Staff Except Sworn Officers and Firefighters $275 $275 0%$0 Per Day, Per Employee [a]
b) Sworn Officers and Firefighters $275 $275 0%$0 Per Day, Per Employee [b]
2 Subpoena Duces Tecum
a) Labor Fee $6 $6 0%$0 per 15-minute increment [c]
b) Per Page Fee
i) Standard Size $0 $0 0%$0 Per Day, Per Employee [c]
ii) Microfilm $0 $0 0%$0 Per Day, Per Employee [c]
iii) Oversized / Non-standard Actual Cost Actual Cost Per Day, Per Employee [c]
Concealed Weapon Permit
3 Concealed Weapon Permit
a) New $363 $374 3%$11 per permit application [d]
b) Renewal $25 $25 0%$0 per permit application [d]
Disturbance Advisory Card / Response
4 Disturbance Advisory Card / Response $132 $143 8%$11 93%100%Each
Permit Review
5 Massage Permit - Operator $391 $412 5%$21 95%100%Per Permit Application
6 Second Hand Dealer
a) Second Hand Dealer Permit
i) Initial $326 $341 4%$15 96%100%Per Permit Application
ii) Renewal $307 $312 1%$5 99%100%Per Permit Application
b) Second Hand / Pawn Dealer Tag Check No Charge No Charge 0%$0 0%0%Per Check
7 Solicitor Application - Per Name $23 $42 0%$0 54%100%Per Application, Per Name
Emergency Response Billing
8 Emergency Response Billing Bill Hourly; per
employee
Bill Hourly; per
employee
100%100%Per Hour; Per Employee [e]
Description
Appendix B: p. 27 46
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - POLICE FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
Motorized Scooter Penalty
9 Motorized Scooter Penalty $200 $200 0%$0 Each
Towing and Vehicle Release / Repossession Fees
10 Franchise Tow Fee / Vehicle Release Fee 93%100%
a) Tow Operator Fee $55 $55 0%$0 Each
b) Customer Fee $97 $110 13%$13 Each
c) Vehicle Release Fee $19 $20 5%$1 Each
11 Vehicle Repossession $15 $15 0%$0 Each [f]
Registrant Fees
12 Registrant Fees
a) Registrant - Narcotics No Charge No Charge 0%$0 0%0%Each
b) Registrant - Sex No Charge No Charge 0%$0 0%0%Each
Reports / Records / Recordings
13 Reports / Records / Recordings
a) Arrest Reports $3 $3 0%$0 Per Report
b) Crime Reports $3 $3 0%$0 Per Report
c) Domestic Violence Reports No Charge No Charge 0%$0 0%0%Per Report
d) Missing Persons Report $3 $3 0%$0 100%Per Report
e) Traffic Collision Reports $3 $3 0%$0 0%Per Report
f) Audio Cassette
i) Dispatch $96 $99 3%$3 97%100%Per Request
ii) Evidence $82 $85 3%$3 97%100%Per Request
g) Photographs - Digital $38 $42 11%$4 90%100%Per Request
h) Video $165 $169 2%$4 98%100%Per Request
Appendix B: p. 28 47
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - POLICE FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
Alarm Fees
14 Alarm Application
a) Initial $58 $60 3%$2 Per Application
b) Renewal
i) Renewal - Commercial $35 $36 3%$1 Per Year
ii) Renewal - Residential $35 $36 3%$1 Every Three Years (Triennial)
15 Alarm-Monitor Fee $208 $214 3%$6 Per Alarm System
16 Alarm-Monitoring Decal (10 Decal Package)$6 $6 3%$0 Per Package
17 Alarm-Monitoring Sign $10 $10 3%$0 Per Sign
18 False Alarm - Billable
a) First and Second Response No Charge No Charge
b) Third Response $50 $50
c) Fourth Response $100 $100
d) Fifth Response $125 $125
e) Each Additional Response Prior Violation +
$25
Prior Violation +
$25
Fingerprinting Fees
19 Fingerprinting Fees $19 $25 32%$6 45%59%Per Request
Clearance Letter
20 Clearance Letter $6 $6 0%$0 Per Request
Citation Sign-Off
21 Citation Sign-Off $6 $10 67%$4 21%36%Per Citation
Bicycle License
22 Bicycle License No Charge No Charge 0%$0 Per Request
Jail Booking Fees
Jail Booking Fees
[a] California Govt. Code 68096.1
[b] California Govt. Code 68097.2B; AB2612.
[c] California Evidence Code 1563
[d] California Penal Code 26190
[e] California Govt. Code 53150
[f] California Govt. Code 41612
Appendix B: p. 29 48
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - ANIMAL CONTROL FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis Note
ADOPTION FEES
1 Adoption Fee
a) Cat
i) Senior Cat - Animal Over 8 Years Old $90 $70 -22%($20)per animal
ii) Cat - All Others $90 $90 0%$0 per animal
b) Dog
i) Senior Dog - Animal Over 8 Years Old $150 $70 -53%($80)per animal
ii) Dog - All Others $150 $150 0%$0 per animal
c) Kitten $110 $110 0%$0 per animal
d) Puppy $225 $225 0%$0 per animal
e) Small Animal $45 $45 0%$0 per animal
BOARDING FEES
2 Boarding Fee
a) Animal Boarding - Per Day $25 $25 0%$0 per day [a]
b) Small Animal Boarding - Per Day $10 $10 0%$0 per day [a]
IMPOUND FEES
3 Impound Fee
a) Impound Fee (Dogs, Cats, Other Similar Size
Animals)
$55 $62 13%$7 each
b) Impound Fine for Nonspayed or Unneutered
Animali) First Impound $35 $35 0%$0 each [b]
ii) Second Impound $50 $50 0%$0 each [b]
iii) Third Impound and Subsequent Impounds $100 $100 0%$0 each [b]
KENNEL LICENSE
4 Kennel License
a) 10 - 29 Animals $211 $217 3%$6 each
b) 30 - 59 Animals $253 $279 10%$26 each
Description
Current cost recovery
for animal regulation
services is 17%
↓
Proposed cost
recovery for animal
regulation services is
18%
↓
Appendix B: p. 30 49
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - ANIMAL CONTROL FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis NoteDescription
MISCELLANEOUS ANIMAL INSPECTION SERVICES
5 Miscellaneous Animal Inspection Services
a) Pot Bellied Pig $141 $155 10%$14 each
b) Wild Animal Permits $141 $155 10%$14 each
c) Court Ordered Inspection n/a - new $155 n/a - new n/a - new each
OWNER TURN-IN FEE
6 Owner Turn-In Fee
a) Altered Animal $100 $100 0%$0 each
b) Unaltered Animal $100 $200 100%$100 each
DECLARED DANGEROUS ANIMAL FEE
7 Declared Dangerous Animal Fee
(In addition to base animal license fee)
n/a - new $248 n/a - new n/a - new per year
ANIMAL LICENSE LATE PAYMENT FEE
8 Animal License Late Charge $3 $5 100%$3 each
[a] Boarding fees also apply for animals impounded for quarantine.
[b] Food and Agriculture Code Sections 30804.7 and 31751.7. These amounts are in addition to impound fees.
Appendix B: p. 31
515151
50
ATTACHMENT B
NEWPORT BEACH MUNICIPAL CODE SECTION 3.36.030 CHANGES
51
Newport Beach Municipal Code Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 1/6
The Newport Beach Municipal Code is current through Ordinance 2022-22, passed November 15, 2022.
Chapter 3.36
COST RECOVERY FOR USER SERVICES
Sections: 3.36.010 Findings. 3.36.020 Definitions. 3.36.030 Cost Recovery Percentages. 3.36.040 Late Fees and Charges. 3.36.050 Severability.
3.36.010 Findings. The City Council of the City of Newport Beach finds as follows:
A. The City funds certain municipal services such as fire, police and residential trash collection using primarily property, sales and other tax revenues. These municipal services are typically performed without request by the user,benefit the public generally, and are traditionally funded by tax revenue.
B. The City performs other services and offers certain programs which are funded in whole or in part by the person or entity requesting the service or requesting to participate in the program. These services and programs are typically initiated by an application submitted by the person requesting the service or program participation, primarily benefit the person requesting the service or program participation, and are traditionally funded in whole or in part from fees charged to the person who initiates the service or program participation.
C. The City Council has retained consultants to conduct cost allocation plan and cost of services studies. Cost allocation studies determine the general City and departmental overhead rates to be used in calculating the cost of City services. Cost of services studies determine the costs of providing certain City services by, among other things,identifying the City employees performing the service and the amount of time spent in performing the service. The City Council has thoroughly reviewed and considered the studies prior to adopting the ordinance codified in this chapter. In order to ensure that fees charged for services are an accurate reflection of actual costs, the City Council finds that cost studies should be conducted at least every five years.
D. The Finance Committee of the City Council has conducted public meetings to discuss the cost allocation plan and cost of services studies, the factors relevant to the appropriate cost recovery percentage for the services studied, and to receive public input on the issues. The Finance Committee has submitted recommendations to the City Council regarding the appropriate cost recovery percentage and those recommendations have been reviewed and considered by the City Council prior to adopting the ordinance codified in this chapter.
E. The City Council has fully complied with provisions of State and local law in establishing the cost recovery percentages specified in this chapter, including, Section 66000 et seq. of the Government Code, and Articles XIIIC and XIIIB of the State Constitution. (Ord. 2022-10 § 1, 2022; Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 97-8 § 1 (part), 1997)
3.36.020 Definitions. For purposes of this chapter, the following definitions shall apply:
“Actual cost” means the estimated cost to the City of providing a user service to a user as initially determined by analysis of the cost factors in the studies and as modified from time to time in accordance with changes in cost factors.
“Cost factors” means the various factors identified in the studies relevant to the calculation of the actual cost to the City of providing user services to a user.
“Cost recovery percentage” means the percentage of the actual cost to the City of providing a user service that the City Council determines should be recovered from the user.
52
Newport Beach Municipal Code Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 2/6
The Newport Beach Municipal Code is current through Ordinance 2022-22, passed November 15, 2022.
“Cost studies” means the Cost of Services and Cost Allocation Studies conducted by the City’s consultant(s).
“Fee resolution” means the resolution adopted by the City Council pursuant to this chapter which establishes the fees and charges for user services.
“User” means the person or entity who requests, by filing an application or otherwise, City performance of, or user’s participation in, a user service.
“User services” means services or programs that are initiated by express request or by an application submitted by the person requesting the service or requesting to participate in the program, which primarily benefits the person requesting the service or program participation. User services include the services and programs identified in the user fee resolution adopted by the City Council and which are funded, in whole or in part, by fees or charges imposed on the person requesting the service or program participation in an amount based on the most recent cost of services studies. User services do not include municipal services traditionally funded by tax revenue, that are typically performed without the express request of a person, or for the public benefit generally. (Ord. 2022-10 § 2, 2022; Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 97-8 § 1 (part), 1997)
3.36.030 Cost Recovery Percentages. A. The municipal functions the City Council has determined to be user services and for which the City Council has initially determined the actual costs and the appropriate cost recovery percentage are described in the fee resolution. The cost recovery percentage appropriate for each user service shall be one hundred (100) percent with the exception of the user services listed in Exhibit “A” and those services for which the fee is limited by statute. TheCity Council may include in the fee resolution a schedule to phase in specific fee increases over a period not to exceed four years.
B. The City Council shall establish, pursuant to the fee resolution, the actual fee or charge for each user servicedescribed in the fee resolution. The fee or charge shall be based upon the actual cost of providing the user service, multiplied by the relevant cost recovery percentage.
C. The City Council may, without amending this chapter, modify (increase or decrease) the fee resolution to amend the amount of any fee or charge for, and the actual cost of providing, any user service upon a determination that there has been an increase or decrease in one or more of the cost factors relevant to the calculation of the actual cost of providing that service.
D. The City Council may modify the municipal functions determined to be user services in the fee resolution and the cost recovery percentage for any service only by amending this chapter.
E. Fees for service established in the fee resolution may be waived by:
1. The City Council;
2. The City Manager, up to an amount not to exceed one thousand dollars ($1,000.00), per occurrence, for fees imposed on nonprofit organizations for nonprofit sponsored events; or
3. The City Manager or the Finance Director up to an amount not to exceed five thousand dollars ($5,000.00), per occurrence, if the City Manager or Finance Director determines that the imposition of the fee would exceed the actual cost to the City or would result in duplicative fees for services rendered.
Exhibit A
The City’s cost of providing the following services shall be recovered through direct fees charged for services. Exhibit “A” limits cost recovery fees to the percentages or dollar amounts indicated below.
53
Newport Beach Municipal Code Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 3/6
The Newport Beach Municipal Code is current through Ordinance 2022-22, passed November 15, 2022.
Service
Percentage of Cost or Amount to Be Recovered from Direct Fees
All Departments
Appeals—For Any User Services Appeal Not Otherwise Specified—Applicant Successful
0%
Appeals—For Any User Services Appeal Not Otherwise Specified—Applicant Unsuccessful
50%
Community Development Department
Chapter 17.65 Appeal — Applicant Successful 0%
Chapter 17.65 Appeal to City Council—Applicant Unsuccessful $94050%
Chapter 17.65 Appeal to Harbor Commission—Applicant Unsuccessful
$1,250
Building
Appeals Board Hearing—Applicant Successful 0%
Appeals Board Hearing—Applicant Unsuccessful $1,71550%
Harbor Construction 50%
Preliminary Plan Review First Two Hours Free, Full Cost Thereafter
Planning
Appeals to City Council or Planning Commission – Applicant Successful $1,7150%
Appeals to City Council or Planning Commission – Applicant Unsuccessful $1,71550%
Coastal Development Permit Application Appeals from Zoning Administrator to Planning Commission – Applicant Successful
0%
Coastal Development Permit Application Appeals from Zoning Administrator to Planning Commission – Applicant Unsuccessful
50%
General Plan Maintenance Fee 12%
Reasonable Accommodation 0%
Finance Department
Admin. Cite Hearings 0%
Parking Hearings 0%
Payment Plans (Except Parking) $25
Short Term Lodging Permit Suspension or Revocation Hearing—Applicant Successful
0%
Formatted: Font color: Red
Formatted: Font color: Red
Formatted: Font color: Red
54
Newport Beach Municipal Code Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 4/6
The Newport Beach Municipal Code is current through Ordinance 2022-22, passed November 15, 2022.
Service
Percentage of Cost or Amount to Be Recovered from Direct Fees
Short Term Lodging Permit Suspension or Revocation Hearing—Applicant Unsuccessful
50%
Zero Bill Reprint 0%
Fire Department
Emergency Medical Services
Advanced Life Support (ALS)—Nontransport $400
Basic Life Support (BLS)—Nontransport $400
ALS First Responder Fee $400
BLS First Responder Fee $400
Harbor Department
Chapter 17.65 Appeal—Applicant Successful 0%
Chapter 17.65 Appeal to City Council—Applicant Unsuccessful $94050%
Chapter 17.65 Appeal to Harbor Commission – Applicant Unsuccessful
$1,250
Library Services Department
Black and White Copies from Self-Service Copiers or Printers $0.15
Color Copies from Self-Service Copiers or Printers $0.45
Use Fees—Materials $1
Inter-Library Loan $5
Police Department
Bike Licenses 17%0%
Citation Sign-off $10
Fingerprinting – City Portion $25
Secondhand/Pawn Dealer Tag Check 0%
Registrant—Narcotics 0%
Registrant – Sex 0%
Animal Shelter
Adoption Fee—Dogs $150
Adoption Fee—Puppies $225
Adoption Fee – Senior Dog – Animal Over Eight (8) Years Old $70
Formatted: Indent: Left: 0.26"
55
Newport Beach Municipal Code Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 5/6
The Newport Beach Municipal Code is current through Ordinance 2022-22, passed November 15, 2022.
Service
Percentage of Cost or Amount to Be Recovered from Direct Fees
Adoption Fee – Dog – All Other $150
Adoption Fee—Cats $90
Adoption Fee—Kittens $110
Adoption Fee – Senior Cat – Animal Over Eight (8) Years Old $70
Adoption Fee – Cat – All Other $90
Adoption Fee—Small Animals $45
Boarding Fee (per day)—Animals $25
Boarding Fee (per day)—Small Animals $10
Owner Turn-In Fee – Altered Animal $100
Owner Turn-In Fee – Unaltered Animal $200
Impound Fee—Dogs, Cats, Small Animals $55$62
Public Works Department
Chapter 17.65 Appeal—Applicant Successful 0%
Chapter 17.65 Appeal to City Council—Applicant Unsuccessful $940
Chapter 17.65 Appeal to Harbor Commission—Applicant Unsuccessful
$1,250
RGP Dredging Permit 42%
Recreation and Senior Services Department
Adult Sports 50%—95%
Administrative Processing Fee $5
Badge Replacement $5
After School/Camp Programs
Camps 20%—50%
After-School/Teen Program 20%—50%
Preschool Program 20%—50%
Aquatics 20%—50%
Contract Classes 50%—95%
Class Refunds
$74 or less $10
$75 or more $20
Youth Sports 20%—50%
56
Newport Beach Municipal Code Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 6/6
The Newport Beach Municipal Code is current through Ordinance 2022-22, passed November 15, 2022.
Service
Percentage of Cost or Amount to Be Recovered from Direct Fees
Special Events—Levels 1, 2, and 3
Resident, Level 1 and Late Fees for Level 1 0%—20%
Resident, Levels 2—3 and Late Fees for Levels 2—3 20%—50%
Nonresident, Levels 1—2 and Late Fees for Level 1 20%—50%
Nonresident, Level 3 and Late Fees for Levels 2—3 50%—95%
Appeal to City Council—Applicant Successful 0%
Appeal to City Council—Applicant Unsuccessful 50%—95%
Natural Resources Programs 0%—20%
Senior Services
Oasis Transportation $1—$3 each way
Contract Classes 20%—50%
Fitness Center 50%—95%
Utilities Department
Construction Water Meter Establishment 50%
Fats, Oils, and Grease (FOG) Annual Permit 0%
City Council, Board, Commission, Committee or Any Individual Member Thereof When Acting Within the Scope of Their Official Duties
Review from a Lower Body or Official $0
(Ord. 2022-10 §§ 3, 4, 2022; Ord. 2021-13 § 1, 2021; Ord. 2021-7 § 1, 2021; Ord. 2020-10 § 1, 2020; Ord. 2020-5 § 4, 2020; Ord. 2018-15 § 1, 2018; Ord. 2018-13 § 1, 2018; Ord. 2016-14 § 1, 2016; Ord. 2015-29 § 1, 2015; Ord. 2015-9 § 1, 2015; Ord. 2013-18 §§ 1, 2, 2013; Ord. 2013-1 § 1, 2013; Ord. 2011-28 § 1, 2011; Ord. 2011-10 § 1, 2011; Ord. 2009-32 § 1 (Exh. A), 2010; Ord. 2009-21 § 1 (Att. 1), 2009; Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 2004-4 § 3, 2004; Ord. 2002-26 Exh. A, 2002; Ord. 2000-24 § 1, 2000; Ord. 98-18 § 1, 1998; Ord. 97-8 §§ 1 (part), 2,1997)
3.36.040 Late Fees and Charges. Notwithstanding any other provision of this Code, the City Council shall establish, in the fee resolution, late fees and interest to be paid by any user of user services who fails to make payments when required by this Code or any resolution, policy, or program adopted by the City Council. To the maximum extent practical, the late fees and interest shall be uniform for all user fees. (Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 97-8 § 1 (part), 1997)
3.36.050 Severability. If any section, subsection, sentence, clause or phrase of this chapter 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 chapter. The City Council declares that it would have passed the ordinance codified in this chapter and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. (Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 97-8 § 2, 1997)
57
Fee Study Update
Finance
Committee
Meeting
April 13, 2023
City of Newport Beach –Finance Department 2
•Example: Building PermitsCost Recovery-Based User Fees
Fees limited to recovering the cost of
providing the service
•Example: Facility RentalsMarket Rate User Fees
The city can charge whatever price the
market will pay (must be competitive)
•Example: Passport ServiceFees Set by Law
Some fees are set by Federal or State law
•Example: Business LicensesTaxes under Propositions 218 and 26
Certain fees constitute taxes and may not
be increased without a vote of the people
•Example: Library FinesFines
Fines are not subject to cost recovery rules
and may be set by the Council
Types of Fees and Fines
City of Newport Beach –Finance Department 3
Degree of General vs. Private Benefit
Commercial
Facility Rentals
Fire Prevention
Inspections
Zoning and Planning
ApprovalsRecreation Classes
Certain Appeals
Non-Profit
Facility Rentals
Police Services
Street Maintenance
Park Maintenance
Tax-Funded Fee-Funded
General Benefit Private Benefit
City of Newport Beach –Finance Department 4
Authority for Cost-Recovery Based User Fees
Fiscal Sustainability Plan
Establish appropriate cost-recovery targets and adjust fee structure to ensure that
the fees continue to meet cost recovery targets.
City Council Policy F-4 –Revenue Measures
The City will establish appropriate cost-recovery targets for its fee structure and will
annually adjust its fee structure to ensure that the fees continue to meet cost
recovery targets.
Newport Beach Municipal Code Section 3.36.030 mandates 100% cost recovery
(except for subsidized services identified in the municipal code)
City of Newport Beach –Finance Department 5
Cost Recovery-Based User Fees
Fees cannot exceed the cost of providing the service
Considerations:
Degree of private benefit
Appropriate cost recovery level
Size of increase that would result from full cost recovery
Calculation of the maximum fee is a math exercise
Type of fee varies based on fit (flat, tiered based on effort, or deposit-based)
Degree of cost recovery is a policy decision
City of Newport Beach –Finance Department 6
Example: Cost of Service Analysis
Hourly Rate for
Personnel
Providing
Services
Time Required
to Perform the
Servicex =Cost of Service
Fully Burdened
Hourly Rates:
Direct and indirect
labor costs
Services and supplies
Agency overhead
Estimated or Known
Times for Providing
Services
Maximum Fee
Amount
City of Newport Beach –Finance Department 7
Cost Recovery Analysis
Revenue from
Current Fee in $
Full cost of
Service in $Proposed Fee
Current Level of
Cost Recovery
Maximum Level of
Cost Recovery (100%)
Recommended Level of
Cost Recovery
Proposed General
Revenue Subsidy
Current General
Revenue Subsidy
Minimum Level of
Cost Recovery (0%)
New Fees:
1)General Plan Fee
2)Litigation Defense Fee
City of Newport Beach –Finance Department 8
Community Development Department
Fees Last Updated:
2020
Sample Services:
Entitlement review and
review of development
applications for zoning
code compliance.
Construction plan
review, permitting, and
inspection.
Fee Changes:
•Building Fees:
•No new fees are proposed
•Continue to follow the City’s adopted cost recovery policy
•Proposed fee adjustments of approximately 3%
•Planning Fees:
•Implement a General Plan Maintenance Fee
•Purpose of Fee: Offset a portion of the costs of General Plan Maintenance.
•Fee Amount: 5% of building permit fee.
•Fee Precedent: Similar fee is collected by other agencies throughout the region/State.
Fee aligns well to the region.
•Litigation Defense Fee
•Formally document in the fee schedule that the City will pass-through to the applicant,
the full costs of project-related legal review fees.
•Other Planning fee adjustments follow City’s adopted cost recovery policy
•Stakeholder Review:
•Staff reviewed proposed fee adjustments with the regional Building Industry Association
(BIA).
Net Revenue Impact:
$500,000
City of Newport Beach –Finance Department 9
Fire Department
Fees Last Updated:
2022
Sample Services:
Inspections, plan
reviews, operational
permits, EMS fees and
paramedic subscription
fees, Junior Lifeguard
Program Fees
Fee Changes:
•Fire Prevention Fees:
•Fire Prevention fees were most recently examined in 2022. Only minor changes are
proposed.
•Fees are primarily being recalibrated to reflect the cost of service.
•Two new fees proposed to enhance correlation between service provided and fee
collected. Fee restructuring enables scaling of fees for fire alarm system review
and fire sprinkler system review for buildings in excess of two stories.
•EMS Fees:
•Emergency Transport Fees to Increase by 2%.
•Paramedic Subscription Fee to Increase by $2 per month effective January 2024
•Current Fee = $60 per year
•Proposed Fee = $84 per year
New Fees:
1)Alarm Rvw > 2 stories
2)Sprinkler Rvw > 2 stories
Net Revenue Impact:
$90,000
City of Newport Beach –Finance Department 10
Police Department
Fees Last Updated:
2020
Sample Services:
Specialized permit
review, vehicle release,
Animal regulation fees
Net Revenue Impact:
$30,000
New Fees:
Animal related fees
Fee Changes:
•Police Administrative Fees:
•No new fees are proposed
•Continue to follow the City’s adopted cost recovery policy
•Proposed fee adjustments of approximately 5% or $5
•Animal Regulation Fees:
•Establish a reduced adoption fee for animals over 8 years old, to encourage
adoption of aged animals. Reduced fee aligns to the region.
•Establish fee administering court ordered inspections (recover City costs).
•Establish fee for voluntary turn-in of unaltered animals. The City incurs more costs
when unaltered animals are turned-in due to additional veterinary costs associated
with spaying/neutering animal.
•Establish additional fee for licensing animals that have been declared dangerous
due to increased cost of regulation (recover City costs).
City of Newport Beach –Finance Department 11
Other Updates for All Departments
•Document pass-through fee of vendor payment processing costs for payments
made via cell phone applications (e.g., payment of parking meter fees via cell
phone app).
•Fee is charged by the vendor and passed directly back to the vendor.
•Net $0 revenue to City.
City of Newport Beach –Finance Department 12
Fiscal Impact of Fee Updates
Department
FY 2023-24 Proposed Net
Revenue Impact
Community Development Department $500,000
Fire Department $90,000
Police Department $30,000
Total $620,000
•Proposed fee updates will result in approximately $620,000 of
additional revenue next fiscal year
•Additional revenues expected from proposed changes to fees and
charges are intended to offset the cost of providing existing
services associated with those fee-related regulatory functions.
Additional fee revenue is not intended to fund new services.
City of Newport Beach –Finance Department 13
Fiscal Impact of Fee Subsidies
1 Annual subsidy is proposed for General Plan Maintenance costs. Majority of General Plan
Maintenance costs will continue to be tax-funded.
2 City recovery of EMS costs is limited. Only portion of cost of service is recoverable.
3 Annual subsidy is proposed for animal regulation costs. Majority of costs of animal regulation
will continue to be tax-funded.
Department
Proposed
Annual Subsidy
Community Development Department $1,500,000 1
Fire Department $6,800,000 2
Police Department $780,000 3
Total $9,080,000
City of Newport Beach –Finance Department 14
Timeline and Recommendation
April 13, 2023
Finance Committee
Review
May 9, 2023
Council Review and
First Ordinance
Reading of Proposed
NBMC Changes
May 23, 2023
Council Second
Ordinance
Reading/Adoption of
Proposed NBMC
Changes
August 1, 2023
Effective date for
proposed fee
updates and CPI for
non-studied
departments and
rental fees1
Review the proposed fee updates and provide any recommendations for
consideration by the City Manager and City Council.Recommendation
1 –CPI adjustments effective July 1st
City of Newport Beach –Finance Department 15
Questions?
FY 2023-24 Proposed Budget Finance
Committee
Meeting
April 13, 2023
City of Newport Beach –Finance Department 2
Principles Guiding Development of the Budget
Budget Priorities:
•Providing high quality municipal services that residents expect
•Providing a safe and secure neighborhood
•Keeping Newport Beach looking great
•Maintaining a prosperous, fiscally sustainable, and economically viable city
Additional Focus:
•Continued emphasis on elimination of the City’s long-term liabilities
•Ensuring proper funding of long-term infrastructure maintenance and replacement
•Addressing key City Council priorities identified at the January 28, 2023, City Council
Planning Session
City of Newport Beach –Finance Department 3
Budget Development Timeline
Source and Use Projections
Personnel Budget Development
Departmental CIP Preparation
Departmental Budget Preparation
City Manager Review
Finance Committee Review
City Council Review
Budget Adoption
Budget Implementation
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
City of Newport Beach –Finance Department 4
Opportunities for Public Engagement & City Council Review of the Budget
Date Meeting Type Meeting Purpose
Thursday, January 13, 2023 Finance Committee Meeting Long-Range Financial Forecast (LRFF) update
Saturday, January 28, 2023 Special City Council Meeting City Council Planning Session
Thursday, March 16, 2023 Finance Committee Meeting Overview of FY 2023-24 Revenue Projections
Tuesday, March 28, 2023 City Council Study Session Early Look at CIP Budget
Thursday, April 13, 2023 Finance Committee Meeting Proposed FY 2023-24 Expenditure Budget Review
Tuesday, May 23, 2023 Joint City Council/Finance Committee
Study Session FY 2023-24 Operating Budget Review
Thursday, May 25, 2023 Finance Committee Meeting Finalize Recommendations to City Council
Tuesday, June 13, 2023 City Council Public Hearing Adoption of FY 2023-24 Budget
FY 2022-23
Budget Status
5City of Newport Beach –Finance Department
City of Newport Beach –Finance Department 6
Recap of Second Quarter Budget Update
Adopted Revenue Budget $ 282.3 million
First Quarter Projection $ 285.5 million
Second Quarter Projection $ 292.8 million
•Projected Revenues are $10.5 million (3.7%) higher
than the adopted budget
•Primary variances from adopted budget
•Property Tax + $2.0 million
•Sales Tax + $2.4 million
•Transient Occupancy Tax + $1.1 million
•Parking Revenue + $1.2 million
$-
$50
$100
$150
$200
$250
$300
Adopted First Quarter Second
QuarterMillions
Property Tax Sales Tax TOT Transfers Other
City of Newport Beach –Finance Department 7
Recap of Second Quarter Budget Update
Adopted Expenditure Budget $ 275.2 million
Revised Budget $ 287.3 million
Second Quarter Projection $ 282.7 million
•Material appropriations to the budget include:
•$5 million appropriation to increase the amount paid to CalPERS towards the unfunded pension
liability (from $40 million to $45 million)
•Implementation of new labor agreements
•Increase to the Medi-Cal IGT Program, which is offset by grant revenues
•Increase to Recreation budget for instructor payments related to fee based classes, which is
offset by additional revenues
•Budget savings of $4.6 million projected, largely from vacancy savings
City of Newport Beach –Finance Department 8
Recap of Second Quarter Budget Update
•$12.4 million surplus projected for FY 2022-23
based on the Second Quarter Budget Update.
•$24 million allocation from the General
Fund to purchase the Dove Street
property from the FY 2021-22 Surplus
•FY 2022-23 projected surplus to be used
to reimburse FFP and General Fund CIP
Funds for their contribution to the
purchase on Dove Street and to fund the
contingency reserve for FY 2023-24
•Additional positive revenue adjustments and
expenditure savings are anticipated
All Funds
Budget Overview
9City of Newport Beach –Finance Department
City of Newport Beach –Finance Department 10
Summary of All Funds –Expenditures
•6.3% growth in operating budget, primarily due to:
•Additional step added to all classifications
•Continuation of 1.5% pension holiday/increase to cafeteria allowance
•Higher volume year for routine vehicle replacement
•Proposed Program Enhancement Requests
•FY 2022-23 includes capital project funding from prior surpluses and ARPA
Note: Prior year amounts have been restated to align with the current accounting for Tideland expenditures.
FY 20
Adopted
FY 21
Adopted
FY 22
Adopted
FY 23
Adopted
FY 24
Proposed % Variance
Operating Budget 287,812,218 290,407,369 291,523,400 330,919,923 351,636,790 6.3%
Transfers Out 47,637,351 27,979,154 39,075,536 53,035,836 57,199,765 7.9%
CIP New Appropriations 45,686,890 31,377,224 35,506,078 71,030,292 29,043,000 -59.1%
Total Budget 381,136,459 349,763,747 366,105,014 454,986,051 437,879,555 -3.8%
City of Newport Beach –Finance Department 11
All Funds Operating Expenditures Trend
$273.8 $290.3 $298.5 $308.8 $321.0 $330.9 $351.6
$66.2 $89.4 $65.5
$100.4 $87.9 $96.1
$57.2
$-
$50
$100
$150
$200
$250
$300
$350
$400
2017-18
Actual
2018-19
Actual
2019-20
Actual
2020-21
Actual
2021-22
Actual
2022-23
Adopted
2023-24
ProposedMillions Operating Expenditures
Transfers Out
City of Newport Beach –Finance Department 12
Operating Expenditures by Fund
General Fund
71.7%
Tidelands
5.7%
Water
8.2%
Wastewater
1.2%
Other
13.1%
City of Newport Beach –Finance Department 13
Major Fund Operating Expenditures
Note: Amounts Include Operating Expenditures and Transfers
•General Fund growth of 6.2% outlined in detail on subsequent slides
•Tidelands Fund growth of 11.1% primarily due to:
•Updated Cost Allocation Plan
•Recommended staffing changes from program enhancement requests
FY 20
Adopted
FY 21
Adopted
FY 22
Adopted
FY 23
Adopted
FY 24
Proposed % Variance
General Fund 250,556,288 225,858,038 246,163,632 276,111,174 293,264,351 6.2%
Tidelands Fund 18,502,088 20,084,234 20,727,144 20,978,717 23,312,029 11.1%
Water Enterprise Fund 26,584,151 27,969,925 27,933,241 32,069,765 33,623,346 4.8%
Wastewater Enterprise Fund 3,966,734 4,284,105 3,956,840 4,884,651 5,097,917 4.4%
Other Funds 51,797,406 57,319,375 49,408,984 49,911,451 53,538,913 7.3%
351,406,668 335,515,677 348,189,842 383,955,759 408,836,555 6.5%
General Fund
Budget Overview
14City of Newport Beach –Finance Department
City of Newport Beach –Finance Department 15
General Fund Revenue Sources
45.4%
16.0%
10.5%
4.1%
9.9%
5.3%
6.3%
2.6%Property Taxes
Sales Tax
Transient Occupancy Tax
Other Taxes
Charges for Services
Property Income
Transfers
All Other Sources
City of Newport Beach –Finance Department 16
General Fund Revenues for FY 2023-24
2021-22 Actual $ 284.1 million
2022-23 Projected $ 293.7 million
2023-24 Projected $ 304.1 million
•Projected revenues for FY 2023-24 are $10.4
million (3.5%) higher than amounts currently
projected for FY 2022-23
•Primary drivers of revenue growth due to:
•Property Tax + $4.5 million (3.4%)
•TOT + $1.5 million (5%)
•Parking & Property Income + $2.2 million
•Transfer from Tidelands (CAP) + $1.7 million
$-
$50
$100
$150
$200
$250
$300
$350
FY 2021-22Actuals FY 2022-23Projected Year End FY 2023-24ProjectionMillions
Property Tax Sales Tax TOT Transfers Others
City of Newport Beach –Finance Department 17
Revenue Updates Since March Finance Committee
•No major updates to revenue projections since the last Finance Committee
meeting, with the exception of:
•Paramedic Service Fee increased by $650,000 based on historical trends.
•Recreation facility rentals increased by $68,000 for enhancements related
to the new Junior Lifeguard building and synthetic turf fields at various
parks.
City of Newport Beach –Finance Department 18
General Fund Expenditures for FY 2023-24
2022-23 Adopted Budget $ 276.1 million
2022-23 Amended Budget $ 287.3 million
2023-24 Proposed Budget $ 293.3 million
The Proposed Budget for FY 2023-24 reflects:
•6% increase over FY 2022-23 Adopted Budget
•2% increase over FY 2022-23 Amended Budget
•$40 million allocated to paying down the City’s
unfunded pension liability $0
$50
$100
$150
$200
$250
$300
FY 22-23
Adopted Budget
FY 22-23
Amended
Budget
FY 23-24
Proposed
BudgetMillions
Salaries & Benefits Non-Personnel Transfers
City of Newport Beach –Finance Department 19
Significant Reasons for Budget Growth of 6.2%
Cost % Change
Additional Top Step $1,793,000 0.6%
Pension Holiday/Cafeteria Reduction $1,141,000 0.4%
Increased Internal Service Charges $1,310,000 0.5%
Program Enhancements –General Fund Portion $2,751,000 1.0%
CPI Increases to M&O Budgets $1,479,000 0.5%
Additional Homeless Services $500,000 0.2%
Utilities Budget Adjustments (electricity, gas, and water)$528,000 0.2%
Other Routine Personnel (COLAs, Increase to PERS Rates)$4,771,000 1.7%
Police Recruitment Assistance $880,000 0.3%
Increase in Transfers out for GF CIP and Parks CIP $2,000,000 0.7%
Total $17,153,000 6.2%
City of Newport Beach –Finance Department 20
General Fund Expenditures by Department
2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
2023-24
Proposed % Variance
City Council 881,199 848,125 841,003 909,554 924,218 1.6%
City Clerk 1,065,439 1,206,539 1,080,305 1,265,760 1,191,331 -5.9%
City Attorney 2,623,784 2,708,230 2,725,458 2,350,264 2,526,824 7.5%
City Manager 3,344,155 3,543,321 4,571,940 5,992,008 6,689,260 11.6%
Human Resources 3,293,238 3,423,267 3,448,725 3,440,696 3,770,070 9.6%
Finance 9,461,368 9,573,969 9,667,618 9,982,311 10,275,379 2.9%
Police 66,040,641 67,002,345 67,401,926 71,622,531 73,415,698 2.5%
Fire 53,193,484 54,790,911 55,861,885 60,255,549 64,405,996 6.9%
Community Development 12,952,728 12,525,476 12,772,405 13,798,699 14,799,407 7.3%
Library 9,265,651 9,559,849 9,655,108 9,432,008 10,259,001 8.8%
Recreation and Senior Services 13,853,165 13,325,836 13,360,496 13,627,977 15,398,244 13.0%
Public Works 38,255,532 37,274,177 41,305,237 44,397,921 46,594,485 4.9%
Utilities 4,759,656 5,033,549 5,144,631 5,649,416 5,982,258 5.9%
Miscellaneous Non-Operating 121,896 1,043,444 126,896 1,795,710 2,991,226 66.6%
Vacancy Factor -(2,000,000)(2,000,000)0.0%
SubTotal 219,111,935 219,859,038 225,963,632 244,520,405 259,223,396 6.0%
Transfers Out 31,680,252 6,000,000 20,200,000 31,597,269 34,040,955 7.7%
Total 250,792,187 225,859,038 246,163,632 276,117,674 293,264,351 6.2%
City of Newport Beach –Finance Department 21
General Fund Transfers
•General Fund CIP transfer reduced by $530,000 for a one-time program enhancement from the
prior year and increased by $1 million to fund projects in FY 2023-24.
•Increases to FFP and HBMP to index transfer.
•Increase to Tidelands subsidy transfer as needed to support Tidelands Fund.
•New $1 million transfer added to support parks infrastructure projects.
2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
2023-24
Proposed
%
Variance
General Fund CIP 5,000,000 5,000,000 5,700,000 5,530,000 6,000,000 8.5%
Facilities Financing Plan (FFP)10,020,333 -8,500,000 8,600,000 8,673,445 0.9%
Harbor & Beaches Master Plan 5,500,000 -4,500,000 4,600,000 4,715,000 2.5%
Facilities Maintenance Plan (FMP)2,500,000 1,000,000 1,500,000 2,500,000 2,500,000 0.0%
Tidelands Operating Fund -9,987,817 11,152,510 11.7%
Parks Specific CIP Projects ----1,000,000 100.0%
800MHz Radio Fund 500,000 ----0.0%
Other One-Time Transfers 8,159,919 379,452 --100%
Total 31,680,252 6,000,000 20,200,000 31,597,269 34,040,955 7.7%
City of Newport Beach –Finance Department 22
General Fund Internal Service Fund Charges
•Information Technology is increasing due to recommended program enhancement and
other salary & benefit increases citywide.
•Equipment replacement charges are increasing based on adjustments to the rate
setting process over the past two fiscal years.
•Insurance charges are increasing due to increasing premiums.
•OPEB is increasing based on actuarial report data.
FY 20
Adopted
FY 21
Adopted
FY 22
Adopted
FY 23
Adopted
FY 24
Proposed
%
Variance
Information Technology 6,628,828 6,639,228 6,595,085 6,888,238 7,375,129 7.1%
Vehicle Replacement 2,429,440 2,714,673 3,327,141 3,922,740 3,730,547 -4.9%
Equipment Replacement 2,610,653 2,672,067 2,779,552 2,822,871 3,195,573 13.2%
Insurance 9,953,334 9,440,982 7,866,768 10,777,438 11,218,178 4.1%
OPEB 3,528,356 4,510,345 4,510,345 3,778,920 3,981,039 5.3%
Compensated Absences 2,403,134 2,440,698 2,481,372 2,562,839 2,720,045 6.1%
Total $ 27,553,745 $ 28,417,993 $ 27,560,262 $ 30,753,045 $ 32,220,512 4.8%
Program
Enhancements and
Staffing Changes
23City of Newport Beach –Finance Department
City of Newport Beach –Finance Department 24
Summary of Recommended Enhancements
•Program enhancements
of $3.2 million address:
•Key City Council
priorities
•Maintaining
adequate service
levels
•Enhanced
budgeting accuracy
•Previously identified
personnel
adjustments
City of Newport Beach –Finance Department 25
Key General Fund Program Enhancements
•Request to add 1 additional ambulance unit and six (6) firefighter paramedics to
address demand and service needs.
•Combined cost for staffing and fully outfitted ambulance amounts to
$1.73 million, including $650,000 in one-time equipment in FY 2023-24.
0
5,000
10,000
15,000
2000 2010 2017 2022
Calls for Medical Services
6,705
9,185 10,184
161% Increase
3,900
4,285 5,338 6,380
-
2,000
4,000
6,000
8,000
2006 2016 2022
49% Increase
Medical Transports
City of Newport Beach –Finance Department 26
Key General Fund Program Enhancements
•$500,000 dedicated for additional homeless services.
•Harbor Department
•Convert 6.00 part-time Harbor Service Worker FTEs to full-time
•Conversion of Code Enforcement Supervisor to Deputy Harbormaster
•Extended hours of operation (additional part-time hours)
City of Newport Beach –Finance Department 27
Non-Personnel Program Enhancements
Other non-personnel enhancements include:
•$55,000 in IT Services Professional for increased annual network testing
•$30,000 in Finance Department for increased Internal Audit costs
•$53,000 for Library building maintenance (Central and Mariners Libraries)
•$40,000 in Street Furniture Replacement
•$50,000 in Auto Parts and Outside Labor expense for Fleet
•$50,000 for Public Works for ongoing Trellis Grant
•$16,500 for Synthetic Turf Cleaning
City of Newport Beach –Finance Department 28
Proposed Additional Staffing
Fund Department Item Description Full-Time
FTE Change
Part-Time
FTE Change
Budget
Impact
General Fund Community Development Convert PT Permit Technician II to FT 1.00 (0.50) 69,700
City Attorney Convert PT Paralegal to FT 1.00 (1.10) 11,500
Fire Add Six Firefighter Paramedics 6.00 - 1,084,100
Fire Convert PT Life Safety Specialist III to FT 1.00 (0.75) 47,400
Fire Convert PT Recreation Coordinator to FT 1.00 (0.85) 28,200
Human Resources Reclass HR Manager to Deputy HR Director - - 10,100
Human Resources Reclass HR Manager to HR Supervisor - - (7,800)
Human Resources Reclass PT Senior HR Analyst to FT HR Supervisor 1.00 (0.75) 76,400
Library Reclass Facilities Maint. Worker II to Facilities Maint. Tech.- - 7,635
Public Works Convert PT Office Assistant to FT 1.00 (0.75) 37,900
Recreation & Senior Serv.Add PT Senior Recreation Leader Hours - 0.42 31,400
Total General Fund 12.00 (4.28) 1,396,535
Tidelands Harbor Convert PT Harbor Service Workers to FT 6.00 (6.00) 109,800
Harbor Reclass Code Enforcement Manager to Deputy Harbormaster - - 11,100
Harbor Add PT Hours to Extend Hours of Operation - 0.90 55,100
Total Tidelands Fund 6.00 (5.10) 176,000
Water Enterprise Fund Utilities Reclass PT Interns to PT Department Assistant 1.00 (1.46) (600)
Fleet Equipment Fund Public Works Add Equipment Mechanic I/II 1.00 - 118,000
IT Operating ISF City Manager (IT)Add IT Applications Analyst 1.00 - 96,900
Total Other Funds 3.00 (1.46) 214,300
Total Personnel Program Enhancements 21.00 (10.84) 1,786,835
City of Newport Beach –Finance Department 29
Changes in Total Staffing 2009 -Now
•Total staffing levels, including part-time
employees, in the City remain 5.5% below
the 15-year peak in 2009
•Part-time employees become eligible for
CalPERS membership when they work
more than 1,000 hours in a fiscal year and
remain so for the duration of their
employment
•These employees do not receive the
full benefit package offered to full-time
employees, yet some work close to full-
time hours
•The primary difference is the level of
contribution to medical insurance
coverage
967 946 925
886 878 848 853 867 855 867 877 886 888 895 902 913
500
600
700
800
900
1000
General Fund
Reserves and Surplus
30City of Newport Beach –Finance Department
City of Newport Beach –Finance Department 31
General Fund Sources and Uses
2022-23
Projected
2023-24
Projected
Beginning Unrestricted Fund Balance $24,093,441 $ -
Operating Revenues & Transfers In 293,734,465 304,058,704
Operating Expenditures & Transfers Out (282,677,537)(293,264,350)
Repayment of Advances 1,250,000 1,250,000
Prior Year Resources Carried Forward 4,429,573 -
Non-Operating Transfers Out (27,457,903)-
Preliminary Ending Unrestricted Fund Balance 13,372,039 12,044,354
Increase in Contingency Reserve (estimated)(3,146,237)-
Repayment of FFP & GF CIP for Dove St (6,956,562)-
Additional CalPERS UAL Payment ($40m to $45m)-(5,000,000)
Final Ending Unrestricted Fund Balance $3,269,240 $7,044,354
City of Newport Beach –Finance Department 32
General Fund Surplus for FY 2023-24
•The Proposed Budget for FY 2023-24 reflects a $7 million structural surplus
•Includes the additional recommended $5 million in discretionary CalPERS
UAL payments for a total of $45 million, as was done in Fiscal Year 2022-23.
•The structural surplus could also be utilized to address additional City Council
priorities in a manner consistent with the direction under City Council Policy F-5
Unfunded Pension
Liability
33City of Newport Beach –Finance Department
City of Newport Beach –Finance Department 34
Recent Changes to the City’s Pension Liability
•In November 2022, CalPERS announced a 7.5% investment loss for Fiscal Year 2021-22.
•The Actuarial Valuation at June 30, 2022 will not be available until August 2023. However,
the CalPERS Pension Outlook tool has been utilized to estimate the City’s projected
funded status as of June 30, 2022, which reflects the impact associated with the 7.5%
investment loss.
* Projected
City of Newport Beach –Finance Department 35
Historical Investment Returns & the City’s Funded Status
Source: CalPERS
City of Newport Beach –Finance Department 36
Turnover of Employees into Tiers 2 and 3
City of Newport Beach –Finance Department 37
Adjusted Unfunded Liability Paydown Strategy
•The Finance Committee and City Council revisit the UAL paydown strategy as
part of each year’s budget process
•In the FY 2022-23 Adopted Budget staff recommended a $40 million per year
payment from the baseline budget plus an additional $5 million added as a
supplemental appropriation at the time of budget adoption
•Staff recommends maintaining the current paydown strategy for FY 2023-24
•Results in an anticipated pay down year of 2032
City of Newport Beach –Finance Department 38
Recap: Key Messages
Strong budget surplus for FY 2022-23
Record General Fund revenues for FY 2023-24
Proposed General Fund budget is balanced
Updated and comprehensive savings plans for long-term needs
Maintained pension UAL payment of $45.0 million resulting in paydown of the liability in 2032
Structural General Fund budget surplus of $7 million subject to the Council’s direction as to
possible additional resource allocations
City of Newport Beach –Finance Department 39
Questions?
CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT
Agenda Item No. 5C April 13, 2023
TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE
FROM: Finance Department
Jason Al-Imam, Finance Director/Treasurer 949-644-3123 or jalimam@newportbeachca.gov
SUBJECT: BUDGET AMENDMENTS FOR QUARTER ENDING MARCH 31, 2023
EXECUTIVE SUMMARY
The purpose of this memorandum is to report on the budget amendments for the third
quarter of Fiscal Year 2022-23. All budget amendments are in compliance with City Council Policy F-3, Budget Adoption and Administration.
DISCUSSION
City Council Policy F-3, Budget Adoption and Administration, identifies how appropriations can be transferred, increased or reduced. The Finance Committee reviews a quarterly report of City Council and City Manager budget amendments including their effect on fund balance. Please find the list of budget amendments included as Attachment A.
Prepared by: Submitted by:
/s/ Jessica Nguyen /s/ Jason Al-Imam
Jessica Nguyen Jason Al-Imam Budget Analyst Finance Director/Treasurer
Attachment: A.Budget Amendments Fiscal Year 2022-23 Quarter Ending March 31,2023
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ATTACHMENT A
BUDGET AMENDMENTS FISCAL YEAR 2022-23 QUARTER ENDING MARCH 31, 2023
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BA # DateAmendment Type FundRevenues Expenditures Net Effect on Fund Balance Increase/(Decrease) DepartmentExplanation045 01/24/2023 City CouncilGENERAL FUND43,022.00 43,022.00 - LibraryTo increase revenue estimates and expenditure appropriations from the California State Library Literacy Services (CLLS). Funds will be allocated to various Library Literacy Services accounts. TIDELANDS HARBOR CAP FUND12,000.00 12,000.00 - Public Works047 01/20/2023 City ManagerGENERAL FUND- 87,696.00 - Human Resources To transfer remaining funds from the CMO to Library Services for position Library Services Manager for remainder of FY23 beginning Payroll Warrant 2316 - 10 Pay Periods.048 01/11/2023 City Manager GENERAL FUND- 7,000.00 7,000.00 City Clerk To utilize savings from part-time vacancies in order to fund a one-time appropriation to cover a branded web design and implementation associated with the City's website refresh. 049 01/24/2023 City CouncilCONTRIBUTIONS FUND102,850.00 102,850.00 - Public WorksTo appropriate new revenues and expenditures from Newport Mesa Unified School District for project 23R06. GENERAL FUND579,129.00 310,177.00 268,952.00 CONTRIBUTIONS FUND266,328.00 266,328.00 - FACILITIES FINANCING PLAN(874,000.00) - (874,000.00) 05102/28/2023 City Council TIDE & SUBMERGED LANDS FUND- 81,019.00 (81,019.00) Public WorksTo appropriate funds from the unappropriated Tidelands Maintenance Fund for Project 17X12, the Newport Bay Water Wheel. 02/28/2023 City Council WATER ENTERPRISE FUND- 200,000.00 (200,000.00) WATER CAPITAL FUND200,000.00 200,000.00 - 05302/17/2023 City Manager GENERAL FUND3,901.00 3,901.00 - LibraryTo reappropriate donation received to appropriate account and appropriate expense for California State Library Funds to buy eBooks. 054 02/17/2023 City Manager GENERAL FUND4,676.60 4,676.60 - PoliceAccept donation for Animal Shelter - Appropriate expense to reimburse purchase of furniture for Animal Shelter. 055 02/17/2023 City Manager GENERAL FUND1,350.00 1,350.00 - Library Accept two private donations from the National Charity League and Harbor View Elementary and increase expenses in Library materials account. 056 03/14/2023 City Council GENERAL FUND37,406.15 37,406.15 - Police Accept Proposition 69 reimbursment. Funding approved by the Orange Ocunty Board of Supervisors January 25, 202203/02/2023 City Manager GENERAL FUND9,000.00 9,000.00 SPECIAL PURPOSE DEPOSIT FUND(9,000.00) 05903/28/2023 City CouncilGENERAL FUND60,000.00 60,000.00 - Police To purchase short-term licenses for a disaster evacuation software platform under 2021 Homeland Security Grant. Under the grant guidelines, the City of Newport Beach must purchase the licesnses first and then receive reimbursement from the County. 060 03/15/2023 City ManagerGENERAL FUND5,000.00 5,000.00 - Library To accept a donation from the Foundation for Library Materials. 062 03/28/2023 City CouncilGENERAL FUND- 215,244.54 (215,244.54) FireGround Emergency Medical Transport (GEMT) Quality Assurance Fee (QAF) Payment 063 03/20/2023 City ManagerGENERAL FUND- 20,000.00 - CMO/ Human Resources Appropriate expenses for the Employee Service Awards & Appreciation Luncheon. 06403/22/2023 City ManagerGENERAL FUND50.00 50.00 - LibraryTo accept a donation from the Foundation for Library Materials. City of Newport BeachFiscal Year 2022-23 Budget AmendmentsQuarter Ending March 31, 202301/09/2023046To accept a "Help Your Harbor" donation and expense it for the purchase and installation of a replacement marina trash skimmer for the Rhine Channel.City ManagerAccept CERT Donation, increase revenue and expenditures in order to purchase new/updated equipment for division (CERT/PIO/Social Media)Public WorksTo increase expenditures in the Water Capital Fund from the Water Enterprise Fund for the Cameo Highlands Secondary Water Supply Improvements project. To increase revenue estimates and expenditure appropriations relating to the Fiscal Year 2022-23 Quarter Two Budget Update.050FinanceCity Council02/28/2023057052Fire60
4/13/23
Scheduled Date Agenda Title Report Type Agenda Description
Thursday, April 13, 2023
Proposed FY 2023-24 Budget Overview Presentation Staff will provide the Committee with an overview of the expenditure budget for
FY 2023-24 that will be presented to the City Council in May.
Budget Amendments for Quarter Ending March 31, 2023 Receive and File Staff will report on the budget amendments from the prior quarter.
2023 Fee Study Update Presentation Staff will present the Master Fee Schedule to the Finance Committee prior to presenting it to the City Council.
Workplan Review Receive and File Staff will report on the upcoming Finance Committee items.
Thursday, May 11, 2023
Third Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected Fiscal Year 2022-23 budget performance.
Follow-Up Discussion of Proposed FY 2023-24 Budget Discussion
Staff will provide the Committee with a copy of the Fiscal Year 2023-24
proposed budget document. Should the Committee wish to continue April's discussion of the Fiscal Year 2023-24 budget, this is also an opportunity to do so.
New Item Enabling Resolution Review Presentation
Staff will provide the Committee with an overview of the Committee's enabling
resolution and the responsibilities delineated therein. The Committee can then
provide staff will feedback regarding any additional topics that should be added
to the Committee's Work Plan.
Workplan Review Receive and File Staff will report on the upcoming Finance Committee items.
Tuesday, May 23, 2023 Joint City Council and Finance Committee Study Session Presentation Staff will present the FY 2023-24 proposed budget to the City Council and
Finance Committee.
Thursday, May 25, 2023 Financial Statement Auditor's Communication with the Finance Committee acting as the City's Audit Committee Presentation
The City's external auditors, Davis Farr LLP, will provide an overview presentation regarding the audit process and request feedback from the Committee regarding any information that may assist them in their audit of the City's financial statements.
Internal Audit Program Reports Presentation Presentation of reports, findings, and recommendations from the FY 2022-23 audit program.
Committee Recommendation to Council for the FY 2023-24 Budget Discussion Discussion of the Study Session earlier in the week and formulation of any recommendations to be presented to the City Council at the budget public hearing in June.
Workplan Review Receive and File Staff will report on the upcoming Finance Committee items.
Committee Recess
Committee RecessJuly 2023
May 2023
Newport Beach Finance Committee Work Plan
April 2023
June 2023
61
4/13/23
Scheduled Date Agenda Title Report Type Agenda Description
Newport Beach Finance Committee Work Plan
Thursday, September 14, 2023
Annual Review of Investment Performance Presentation The City's investment advisor, Chandler Asset Management, will report on the performance of the City's investment portfolio for the fiscal year ending June 30, 2023.
Annual Review of Investment Policy Presentation Staff will provide a presentation regarding any changes proposed to the City's Investment Policy by staff or the City's investment advisor prior to the
Investment Policy being approved by the City Council.
Internal Audit Program Update Presentation Bi-monthly progress update on the internal audit program.
Budget Amendments for Quarter Ending June 30, 2023 Receive and File Staff will report on the budget amendments from the prior quarter.
Workplan Review Receive and File Staff will report on the upcoming Finance Committee items.
Thursday, October 12, 2023
Budget Amendments for Quarter Ending September 30, 2023 Receive and File Staff will report on the budget amendments from the prior quarter.
OPEB Actuarial Valuation Report Update Presentation Staff will provide the Committee with an overview of the Fiscal Year 2022-23 actuarial valuation report prepared by the City's actuary.
Workplan Review Receive and File Staff will report on the upcoming Finance Committee items.
Thursday, November 16, 2023
Rescheduled from October Year-End Budget Results and Surplus Allocation Presentation Staff will provide a presentation regarding the year-end budget results for FY
2022-23 and recommendations for allocation of any year-end budget surplus.
First Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected FY 2023-24 budget performance.
CalPERS Update Presentation Staff will provide the Committee with an overview of the data from the latest actuarial reports from CalPERS as well as their impact on prior projections of the paydown of the City's unfunded pension liability.
Long Range Financial Forecast (LRFF) Update Presentation Staff will brief the Committee regarding the results of the updated LRFF analysis.
October 2023
November 2023
December 2023
Committee Recess
August 2023
September 2023
Committee Recess
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