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Home My WebLink About00 - City Council Planning Session - PowerPointFISCAL YEAR 2024-25 PLANNING SESSION February 3, 2024 City Council Planning Session • Update on Revenues Financial Status and Budget Development — • Long -Range Planning — Capital Improvement Program • Budget Development — Expenditures and Program Enhancements • Code Enforcement Resources • Cultural Arts Funding and Programming � SEW Pp�T U � T a„ cq</FO VL UPDATE ON FINANCIAL STATUS AND BUDGET DEVELOPMENT - REVENUES M • General Fund Revenues are projected at $316 million, which reflects an increase of $8 million (or 2.6%), which is primarily due to: • Property Tax + $5.0 million • Sales Tax + $2.6 million • TOT + $0.6 million $300 $250 $200 $150 $100 $50 $0 General Fund Revenues $308m $316m 2023-24 2024-25 Projected Projected Other ■ Transfers TOT Sales Tax ■ Property Tax 4 • Property tax revenue is the City's largest source of revenue and is projected to increase by $5.0 million (3.5%), which is largely related to the Proposition 13 inflationary adjustment and due to changes in ownership and new construction. $150 $130 0 $110 r $111 90 Q ��WPO�T C'9�/FORN�P +3.8°/ +7.7% $144 +4.3% $13$ +6.60/ $128 +4 $123 $116 2018-19 2019-20 Actual Actual +3.5% $149 2020-21 2021-22 2022-23 2023-24 2024-25 Actual Actual Actual Projected Projected Single Family Residential Sales 2014 1,340 $2,027,552 $1,610,000 7.33% 2015 1,434 $2,173,786 $1,678,750 4.27% 2016 1,467 $2,318,400 $1,780,000 6.03% 2017 1,547 $2,589,204 $1,960,000 10.11% 2018 1,306 $2,727,520 $2,049,000 4.54% 2019 1,310 $2,650,832 $2,000,000 -2.39% 2020 1,584 $2,880,208 $2,175,000 8.75% 2021 2,027 $3,324,707 $2,550,000 1724% 2022 1,187 $3,950,055 $3,050,000 19.61% 2023 977 $4,144,547 $3,050,000 0.00% $4,500,000 $4,000,000 $3,500,000 $3,000,000 m $2,500,000 a y $2,000,000 N $1,500,000 $1,000,000 $500,000 $0 —Median Price —Avg Price Property Tax Revenue by Category ■ Residential ■ Commercial Other ■ Unsecured o^° ti� ti ti� ti ti ti�� ti ti ti ti� 0 • Sales tax revenue is the City's second largest source of revenue and is projected to increase by $2.6 million (5.9%) largely due to projected growth from autos & transportation, restaurants & hotels and the county pool. $50 ,'m c .2 $40 $35 $30 Q ��WPO�T C'9�/FORN�P +0.8% 6.2/o o +5.9% - +18.5°/ $46 $46 $44 -5.9% +7.5°/ $39 139 $36 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Actual Actual Actual Actual Actual Projected Projected $14 $12 c $10 O $8 $6 $4 $2 $0 Q ��WPO�T C'9�/FORN�P Fiscal Years 2022/23, 2023/24 & 2024/25 $14.1 22/23 23/24 24/25 Autos & Transportation $10.1 $9.5 $11.0 22/23 23/24 24/25 Restaurants & Hotels $8.6 $8.4 $8.6 22/23 23/24 24/25 General Consumer Goods $7.5 $6.7 $7.2 22/23 23/24 24/25 State & County Pools • Transient occupancy tax (TOT) revenue is the City's third largest source of revenue and is projected to increase by $0.6 million (2.0%) due to projected growth short-term rentals. $35 $30 $25 0 $20 $15 $10 Q ��W POST } -Af y C'9�/FORN�P in TOT receipts from hotels and $25. -15.6% +58.0% $21 $17 +5.9% +2.0% 113.204 $32 $33 $30 $ 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Actual Actual Actual Actual Actual Projected Projected $25 $21.0 $20 c .2 $15 $10 $5 $0 Q ��W POST C'9�/FORN�P 2018119 $16.6 $11.7 $5.1 $4.2 2019/20 2020/21 MCommereial (Hotel) $21.9 M $23.6 $8.4 2021 /22 2022/23 2023/24 0 Residential (Short -Term Lodging) $24.2 $8.5 2024/25 • Increases in average daily room rates have augmented hotel TOT revenues even though occupancy rates have not yet fully recovered from pre -pandemic highs. • The City projects it will receive $32.6 million in TOT revenue in Fiscal Year 2024-25, net of the 18% paid to Visit Newport Beach. SEW PO U � T a„ cq</FORNNP Commercial TOT FY 2024-25 $29.2 M Residential TOT $10.6 M Total TOT Revenue $39.8 M Less 18% Paid to VNB 7.2 M Net TOT Revenue $32.6 M • Other revenues consists of service fees and charges, fines and penalties, property income, and other miscellaneous revenues. • Other revenues are projected to increase $1.7 million (2.6%) largely due to projected growth from service fees and charges and property income, which includes leases and parking revenue. � SEW Pp�T O - @n U T a„ cq< N /FORN LONG RANGE PLANNING - CAPITAL IMPROVEMENT PROJECTS • Sets Priorities and Appropriates Funds • Provides a Basis for Project Planning and Identifies Potential Conflicts • Develops and Constructs Identified Public Improvements • Addresses Significant Maintenance Projects • Responds to Changing Priorities and Conditions (which evolve —thus so does the CIP) Q ��WPO�T C9�/P0 Vk • Identified by Council, Community or Staff • Developed to Support Council Goals, Objectives, Priorities • Required by Federal, State Law or Legal Action • Included in City Master Plans such as: O� �EWPp�T • P0 Vk Pavement Management Plan Harbor & Beaches Master Plan Facilities Financing Plan Bicycle Master Plan Water Master Plan Sewer Master Plan Neighborhood Revitalization: • Rehabilitate/Replace Existing Aging Public Infrastructure & Facilities • Encourage Private Redevelopment • Undergrounding of Overhead Utility Tidelands Management: • Improve Boating and Visitor -Supporting Facilities and Services • Dredge Main Channels in Lower Harbor • Develop 5 Year Tideland Fund Capital Planning Document Improve Vehicle, Bicycle & Pedestrian Flow & Safety Citywide: • Develop City Bicycle Master Plan & Implement Projects & Programs • Modernize and Synchronize Citywide Traffic Signal System • Address Transportation System Restrictions & Choke Points • Improve Citywide Pavement Condition to Average PCI of 80 • General Plan & Circulation Element • Pavement Management Program • Bicycle Master Plan • Facilities Financing Plan • Facilities Maintenance Master Plan • Park Maintenance Master Plan • Harbor & Beaches Master Plan • Water Master Plan • Sewer Master Plan SEW Pp�T • Master Plan of Drainage } • Street Light Master Plan U � T a„ cq</FORNP • Allows us to Project Street Pavement Conditions and Funding Levels Necessary to Maintain PCI Goal • A Tool to Manage Pavement Information, to Plan, and Answer Questions: • What do I have? • What condition is it in? • How fast is it deteriorating? • When do I need to repair it to maximize pavement life and savings? • Where should I focus on? • How much will it cost? • What if? Q ��WPO�T C'9�/FORN�P 18 It is more cost effective to ion Pavement condition Index maintain a pavement section in Very Good good condition over its useful W . 75 . life than to let it deteriorate to Fair �i eft _ _ the point that it requires a major - ............... #g PAVEMENTF �SERVA,N I REF�L11 4Q1ATIpN overlay or reconstruction. _ E 40 Newport Beach 2023 AC RECOHSTRUCSiON Citywide P C I is 82 or Good V" Poor PCr- � STRu�ON 0 5 10 15 20 25 Age of Pavement 19 50 100 45 90 40 80 35 70 30 60 - 25 50, 20 40 15 30 10 20 5 10 0 0 2022-23 2023-24 2024-25 2025-26 2026-27 2027-23 2028-29 2029-30 Typical Annual Pavement Funding $2.3 Million State Gas Tax $2.0 Million SB 1 Tax } y $2.2 Million OC Measure M Sales Tax (Turnback) ram+ cA�oRN�P $2.0 Million City General Fund 20 CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT LEGEND ® ® - 8 � FmM F-1 B m� • City owns/maintains a lot of buildings and facilities, many of significant size and cost • Facility Financing Plan (FFP) -Plans for the new construction, or major reconstruction/replacement of large city facilities which will require significant funding, typically over $1 million and often require saving up for many years to fund • Plan funding comes from new development fees and the annual General Fund contribution, which is set at 3% of total General Fund Revenues � SEW Pp�T U � T a„ cq</FORN�P Ref New/Repl .cement Active Projects Function Project Yr Built Refurb OG yr Built li Sq Ft Est SlSq Ft Current Age From: 2024 Useful life Years to Star[ Project Estimate FY Design Year FY Const Start Year FV Cost Est & 2.5% Growth Private Contribtions Net Proposed Cost 5 R M u n icpa 10 perations Corporation Yard (Fuel ing and Transfer Station} TBD TBD NA 40 C 6,900,000 2023 2024 6,90C,000 4,941r281 1,958,719 4 R Gen Gov 1511h Street Beach Restroom 1961 1961 1,100 1,200 63 W 1 1,320,0W 2023 2025 1,353,0130 1,353,00(1 6 R Fire/Library FS L- Peninsula/Ba lboa Library 1562 1962 9,925 INOO 62 6o 1 9,925,000 2023 2025 10,173,125 10,173,125 7 R Rec Facility Bonita Creek - Artificial Turf Replacement 2015 2015 157,355 12 9 30 2 1,888,26C 2025 2026 1,983,853 1,983,853 36 R Harbor Dal boa Yacht Basi n B u ild ings 1950 1950 18,000 800 74 60 4 14,400,000 2025 2028 15,894,906 15,894,90fi 37 N Gen Gov PCH Ped Bridge at Superior TBD TBD 5 20,000,0W 2026 2029 22,628,164 13,576,899 9,0S1,266 38 R Rec Facility Gam Howald- Artificia l Turf Replacement 2021 2021 66,01)0 12 3 10 7 752,000 2030 2031 941,439 941,439 S R Police Police Station 1973 1973 60,000 900 51 60 9 54,0W,0W 2030 2033 67,438,6W 67,438,600 9 R Rec Facility New port Theatre Arts Cent.- 1973 1973 7,950 900 51 60 9 7,155,000 2030 2033 8,935,615 4,467,807 4,467,807 11 R Rec Facility Lawn Bowling Facility (San Joe qun Hills Park 1974 1974 2,750 800 50 W 10 2,2W,0W 2031 2034 2,816,186 2,816,186 3 R Rec Facility Arroyo Park Synthetic Turf Field 2E24 2024 102,500 12 0 10 1C 1,230,000 2032 2034 1574,504 1574,504 12 R Fire FS3-Santa Barbara 1971 1971 13,500 900 53 60 11 12,150,0W 2032 2035 '!1 15,941,853 13 R Fire Lifeguard HR Replacement 1988 1965 3,000 900 36 50 14 2,700,000 2035 2038 3,815,029 3,815,029 15 R Rec Facility Commu n ity Youth Center{CYQ- Grant Howe Id WW 1988 5,658 B50 16 30 14 4,S09,300 2035 2038 6,795,415 6,795,415 10 R Fire FS6- Mari ners I living area rebuild) 2C09 1957 3,000 S50 15 30 15 2550,0W 2036 2039 3,693,160 3,693,160 14 R Rec Facility Carroll Beek. Center 2010 19M 1,500 1ROO 14 30 16 1,5W,0W 2037 2040 2,226,758 2,226,758 17 R Rec Facility Cliff Drive Commu n ity Room 2022 1960 761 1,OW 2 30 28 761,000 2051 2052 1,519,333 1,519,333 18 R Fire FS4-Bra lbna is land 1994 1994 4,600 900 30 60 30 4,140,9W 2051 2054 8,683,930 S,683,930 16 R Rec Facility Bonita Creek Community Ctr. 2C24 1988 2,876 950 0 30 3C 2,444,6W 2051 2054 5,127,714 5,127,714 19 R Fire FS 8 - Npt. Coast 2002 1995 7,000 900 22 60 31 6,300,0W 2052 2055 13545,043 13r545,043 20 R Library Library -Central 2013 1997 65,000 B50 11 6O 33 55,250,000 2054 2057 124,801,510 124,801,510 2 R Rec Facility Newport Coast Pirkleba 11 Court 2024 2024 28,790 45 D 40 40 1,291,5W 2062 2064 3,467,760 3,467,760 21 R Library Library -Mariners 2CC6 2DO6 15,300 B50 18 6O 42 11,478,75C 2063 2066 32,381,499 32,381,499 22 R Fire FS7-SAH 20W 2DD7 11,000 900 17 W 43 9,9W,DW 2064 2067 28,G26,049 14,313rO24 14r313,024 23 R Rec Facility New port Coast Co m m u n ity Ctr. 2007 2W7 16,900 B50 17 6O 43 14,365,000 2064 2067 41,536,68fi 41,536,68fi 39 R Rec Fadity CDM Con-ions/LGHQ 2007 2DD7 2,338 850 17 60 43 1,987,3W 2064 2067 5,746,318 5,746,318 24 R Rec Facility Girls & Boys Club (East Bluff Park) 2C 19 1971 11,800 850 5 50 45 10,030,000 2066 2069 30,47C,17C 30,470,170 25 R Rec Facility OASIS Senior Ctr. 2010 2010 43,200 850 14 W 46 36,720,0W 2067 2070 114,340,604 114r340,604 26 R Gen Gov Civic Ceme- 2013 2013 123,000 950 11 60 49 104,550,000 2070 2073 350,585,089 350,585,089 27 R Gen Gov Council ch. mbe. 2013 2013 5,6DD 850 11 60 49 4,760,9W 2070 2073 15,961,598 15,961,598 28 R Rec Facility Marina Park 2C 15 2015 24,390 850 9 6O 53 20,731,500 2074 2077 76,735,37C 76,735,970 29 R Fire FS6- Mari ners I appa ratus bay only} 2018 1957 1,436 900 6 W 54 1,292,400 2075 2078 4,903,269 4r903,269 30 R Fire/Library FS 5 and CDM Library 2019 2019 10,300 900 5 6O 55 9,270,000 2076 2079 36,048,926 36,048,926 31 R Police Animal Shelter 2022 1955 2,320 850 2 60 58 1,972,9W 2079 2082 8,258,309 8r258,309 92 R Fire FS2-Fire Station Not 2C22 1952 11,600 900 2 60 58 10,440,000 208C 2082 43,72C,457 43,720,457 33 R Fire NewportJr. Guard Building 2024 2024 5,400 850 0 W W 4,590,0W 2081 2084 20,195,035 20,195,035 1 R Library Li brary Lecture Ha l l 2025 2025 9,814 1,800 0 60 fil 17,665,20C 2082 2085 79,666,245 79,666,245 34 R Gen Gov Civic Center Parking structure 1450 Sul Is) 2013 2013 450 22ROO 11 75 64 9,9W,0W 2085 2088 48,979,792 48,079,792 35 R Gen Gov 9 u perior Ped/Bike Bridge 2024 2024 3,820 550 0 75 75 2,SC1,000 2096 2099 13,388,008 13,388,008 Total 1,243,601,307 Unfunded/Unapproved Potential Projects A Rec Facility Pool Complex 8,000,0W 8,000,W0 B M u n icpa l Operations Utilities Yard 1970 1970 56,882 800 54 fill 6 45,505,6W 2027 2030 52,772,545 52,772,545 C M u n icpa 10 perations Corporation Yard 15,94 1984 88,243 8W 60 20 70,594,4W 2041 2044 115,677,141 115,4377,144 D Rec Facility Ba rk Bay Science Center 2007 2DI17 12,925 800 50 43 10,340,0W 2064 2067 29,898,318 29,898,318 E Rec Facility West Newport Cam munity Center TSD TBD 11,000 850 9,350,000 9,350,OW 9,350,W0 • The annual 3% GF contribution for FY 2023-24 was $9.1 million, which included $8.7 million for debt service and $0.4 million for future projects • The city also contributed an additional $5.4 million in FY 2023-24 from current year structural surplus and prior year-end surplus • The city currently has $25 million in FFP reserves • Approximately $10 million is required to fund the construction of the Balboa Library/ Fire Station No. 1 project • Recommend increasing GF Contribution to build reserves for future upcoming projects SEW POST U T a„ cq</FORNNP • City maintains over 90 buildings and facilities • Total of approx. 1 million sq ft or 23 Acres of floor space • Currently allocating $2.5 million/year from General Fund • Example of Upcoming Projects: • Central Library Main Air Handler Unit Replacement • Fire Station #8 and Oasis Senior Center HVAC Rehabilitation • Central Library Alarm System Rehabilitation • Utilities Dept and Police Dept Painting • Utilities Locker Room and Shower Rehabilitation • Balboa Yacht Basin Buildings Exterior Paint � SEW Pp�T • o @�, Eastbluff Restroom Rehabilitation U T • Main Library, Oasis Carpet Replacement cq</FORN�P 6 1 MAIN ME1 an AA FTIN 10 • The Harbor & Beaches Master Plan (HBMP) - Plans for the new construction, or major reconstruction/replacement of city harbor & ocean structures, dredging, significant beach care and maintenance efforts • Plan funding comes from the General Fund and Tidelands revenues and augmented by Federal/State Funding • In FY 2023-24, the Tidelands Capital Fund is projected to receive $4.7 million from the General Fund's annual contribution and $5.3 million from certain property leases, piers, and mooring rentals • The Tidelands Fund currently has $37 million in capital reserves SEW POST U T a„ c'91/FORN�P HARBOR & BEACHES MASTER PLAN PROJECTS tastupmted: 01/25/2024 Units Todar's Urrt Current Estimated FYDesign Start FYCnnst Start FVCost Ell External fW Project Category Measurement Total U.N. Cos[ Age: Useful life Years to Start Project Estimate Year Year Growth Contributions Net Proposed Cos[ 1LITIE5 32 Tide Gate Valves (Peninsula): Replace Gate Vahres EA 62 $50,000 " 25 3 $3,100,000 2025 2027 $3,338,361 $3,339,361 39 Lower Castaways: Bul khead Replace Bulkhead 41 Balboa Island, N, 5, E & GC: Boardwalk & Perimet'ar Drainage Other System only jurre Island not include -42k 50 45 Balboa Island: Replare Seawall GC Bulkhead 46 Balboa l sland: Replace Seawall W Bulkhead 47 Balboa Island: Replace Seawall N, S&k Bulkhead 61 Bul khead(American Legion):Replace Bulkhead 65 eulkhead(West Newport): Replace Bulkhead 66 Bulkhead(Corona Del Marl: Replare Bulkhead 67 Bulkhead (Promontory Bay]: Replace Bulkhead 69 Bul dread (Rhine Wharf)Replare Bulkhead 71 Bulkhead(Soi Ends - Peninsula): Replace bulkhead 27 Rd khead[Rabhoa Yacht Basin]_ Replare Bulkhead 37 Bul khead(Ma ri na Pa rk): Replace Bulkhead SUBTOTAL PUBLIC PIERS - REPAIR / REPLACE 11 Public Pieir(15th St): Floc[ only Piers 12 Public Pi- 119th 51): Float only Piers 13 Public Pier (Coral Ave]: Float only Piers 14 Public Pier( Fernando Stj: Float only Piers 15 Public Pier[M St): Flag[ only Piers 16 Public Pi i Upal Aye)' Florm & Gangway only Piers 17 Public Pier lPa rk Avel:Float&Gangway only Piers 18 Public Pier (Washington St): Float only Piers 2E Oman Piers Blennlal Maimenaroe - (Raflaoa &Newport) Piers 29 Public Pier 129th 51): Pier, Ga ngway&Flom Piers 30 PublicPle,r(Frnerall Ploatordy Piers 31 Public Pier jSapphire AveJ:Float&Gangway only Piers 47 Balboa Yacht Basin Slips: Replace Slips Marina 52 Public Pi-115th St):Fier & Gangway [alum inu m only) Piers 74 Pubkc Pier (19th St): Pier Plalform & Gangway Flers 53 Public Pier )Coral Ael: Pier only Piers 54 Public Pieir(Enn-ld Are): Pieranly Flers 55 Public Pier lFernando Stj: Pier only Piers 56 Public Pier(MST): Pier only Piers 57 Public Pro, (Up, l Ayel' Pier only Piers % Public Pler(Pa rk Avel: Pier only Piers 59 Public Pier ISapphire Are): Pier only Piers 60 Public Pier(Washington St): Pier only Piers W Public Pier) Rhine Wharf): Float only Piers 64 Public Pler(Grand Canal, Balboa Are): Pier Platform Piers 68 Public Pier (Rhine Wharf) Pier Platform &Gangway (aluminum) Piers only 70 Marina Park Slips: Replace Slips Marina 72 Public Pier (El Marina West): Float only Piers 73 Public Pler[Balhoa Marina West): Gangway[aluminum} Piers 26 Public Pier (Central AY j: Pier Platform & Gangway (aluminum) only Piers 75 Public Pier Ceruml Awl: Floatoniv Piers 10 Ocean Pier: Replace Newport piers 23 Ocean Pier Replace Balboa Piers 76 Public Swim Float (loth Stj: Replace Rim 77 Public Swim Float lRuby Aye): Rpplaoz Piers LF 165 $10,000 •• SO 10 52,65m,000 2032 2034 $3,392,224 $3,392,224 SF 92,000 $25 80 4 $2,300,000 2026 2028 $2,538,770 $2,538,770 LF 3,D26 $12,000 94 81 10 $36,312,DDD 2026 2034 $46,482,430 $46,482A30 LF 1,470 512.000 94 80 4 $17,64.000 2026 2023 519A7L259 $19,471.259 LF 6,700 $12,000 94 82 15 $80,400,000 2026 2039 $116,443,173 $116,443,173 LF 336 S1D.000 67 95 32 $3,360,000 Z053 2056 57A14,623 57,404,623 LF 1,722 $10,000 •• 80 2 $17,220,000 201 2026 $18,091,763 $18,091,763 LF 175 S1o,0o0 80 21 51,750.OW 2042 2095 52,939,268 52,939.268 LF 1,250 $10,000 59 80 21 511,580,000 2D42 2045 $19A49,558 $19,449,553 LF 343 WPM 64 SO 16 $3,430,OW 2036 2040 $5,aKA54 $5,091,854 IF 2,217 570,000 " 80 2 522,170,10D6 203 2026 $23,292,356 $23,292,356 LF 1,170 $50,000 39 so 41 $13,700 000 2062 2065 $37,701 537,705,009 LF 857 $10,000 9 90 01 $8,570,000 2101 2105 50 50 EA 1 $75'l 20 1 $75,000 2021 ZD25 $76,875 $75,875 EA 1 $80,000 •• 20 1 $80,000 2021 2025 5821000 $82,000 EA 1 $90,000 38 20 1 $90,W0 2021 ZU25 $92,250 $92,250 EA 1 $60,000 •• 20 1 $60,DDD 2021 2025 561,500 $61,500 EA 1 $70,000 '• 20 1 $70.000 2021 2025 $7L750 $71.750 EA 1 $8muio •• 20 1 $sS,DUD 2021 2025 $87,125 587,125 EA 1 585,000 20 1 585.000 2021 2025 $67,125 Si EA 1 $70,000 20 1 $70,0176 2021 2025 $71,750 $71,750 FA 1 550 Ono R3 0 1 $550 Ono 2024 2025 $563,750 $563,750 EA 1 $250,000 " 20 1 $250,000 2022 2024 $255,250 5256,250 FA 1 990 000 37 20 1 990,000 2021 2025 592,250 592,250 EA 1 $95,000 •. 20 1 $95,000 2021 2025 $97,375 $97,375 EA 172 $35omm 38 40 1 $fi,020,Omm 2m23 2025 $6,170300 $6,17p500 EA 1 $150,000 •` 40 16 $150,000 2037 2040 $222,676 $222,676 EA 1 $70,000 " 40 16 $70,W0 2037 2010 $303,915 $1D3,915 EA 1 $125,000 38 40 16 $125,000 2037 2040 $185,553 $185,563 EA 1 $125,000 37 40 16 $125,W0 2037 ZU40 $185,%3 $185,563 EA 1 $125,000 •. 40 16 $125,000 2037 2040 5185,563 $185,563 EA 1 $175.000 38 40 16 $175.000 2037 2040 525%788 $259.793 EA 1 $125.000 •• 4U 16 $126,DOU 2037 204U $185,563 $185,663 EA 1 5125,000 '• 40 16 $125,000 2037 2040 $185,563 $185,563 EA 1 $125,000 40 16 $125,000 2037 704D $1351 $185,563 EA 1 $150,000 •• 40 16 $150,D00 2037 2040 $222,676 $222,676 EA 1 $200,000 15 40 23 $200,000 2045 2047 $352,922 $352,922 EA 1 525,000 6 20 14 525,000 2037 2039 $35,324 $35,324 EA 1 $140,000 15 50 33 $140.000 2055 2057 $316,239 $316,239 EA 23 $35,000 8 40 31 $805,000 2052 2055 $1,730,755 $1,730,755 EA 1 $400.0W 2 40 40 $400,000 3062 2064 $1,U74,026 $1,074,025 EA 1 S70'aw 0 50 50 970,D00 2072 2074 $240,.598 $240,598 EA 1 $140,000 5 50 43 $140,000 2065 2067 a 04,813 $404,813 EA 1 $200,000 6 40 33 $2D llll 2055 2057 $45L770 $451,770 EA 1 $20,000,000 83 SS 3 $20,00m,000 21 2027 $21,537,813 $21,S37,S13 EA 1 $15,000,000 83 85 13 $15,000,000 2034 2037 $20,677,666 $20,677,655 EA 1 $35.000 3 20 18 $35.000 7040 2041 $54,588 $54.588 EA 1 535,000 3 20 18 535,000 204D 2041 $54,589 554,588 • A majority of the future funding needs, or about 50%, are in a few specific projects including: • Balboa Island Seawall Replacement - $136.6 million • Design begins 2026, first section replacement begins 2028 • Newport Pier Replacement - $20 million • Public outreach and concept development underway, construction scheduled to start in 2027 • Balboa Pier Replacement - $15 million • Design scheduled for 2034 • Recommend increasing GF contributions to build up reserves for these major projects t�W PO U � T 28 cq</FORNP • City maintains over 67 parks (not counting beaches) • Total of approx. 250 acres of park space • Currently allocating $1.0 million/year from General Fund • Recommend increasing to $2.3 million for FY 2024-25 through FY 2027/28 • Example of Upcoming Projects: • ADA Playground Improvements — San Miguel Park • Chain Link Fence Replacement — Various Parks • Dugout Bench Replacements —Arroyo Park • Site Lighting Rehabilitation — Various Parks � SEW Pp�T • Shade Structure Replacement — Various Parks ° @� • Drinking Fountains, Benches, Trash Can Replacements U � T a„ cq</FOFL 99 vim m Asset Type rrigatinn Controller :hain-Link Fencing :hain-Link Fencing Iri n ki ng Fountains V0A Playgrountl ,—ining W. 11j3—Wa11 AOSCO Light Replace, ent like Racks e P.dding Irinking Fou nt. ns lackstnps lricktl ust�Pitch ing Yood a nd Composite Picnic Tables larbeques Aetal Signs dr Release Va Ives 'ite Lighting Aonum ent Signs Yood benches 'lastic Trash Receptacle rrigatinn Ya Ives�6nxjLitl 'arking Lot Asphalt 'laygrou nds 'etlestria n Concrete eld Netting :hail -Link Fencing :hain -L nk Fent ink site Lighting 'ite Lighting it. Lighting ighted 8o11ard 3 and rails W ilroad T'e%ta ning Y: all= lailroad T'e Retaining Yood Plank Reta ning Wall W.]. M. a.. LjAthletic Field Chain Link Lot Asphalt ian 00 Location FY 2024 PMMP OTHER FY 2025 PMMP OTHER FY 2025 PMMP OTHER wide S 750,000.01). 5 400,0M.00 Ica Ca nyon Sports Park 5 1,?35,_C_:__ yo Park $ 93,720.01) ............ wide $ SSI,OW w -_- - --- - ---- Miguel Park $75,000W ..............................................................................................:........................................................ n n el Place Park 5 55,430.01) oln Rthletic $ SO,000.W ......................................................................................................................................................... Ita Creek Pa rk 5 45,OW.W ryo Pa rk $ 23,22D OO .......................................................................................................................................................... yo Park $ 7,440.01). ............................................................... ....:..... oln Rthl etic .......... ........... ........... ....e................ ........... ........... ........ $ 6, 1]D.00 ................................................................. '.[JettyYiew Park $ b,G2O.W wide ................................................................................ $ 7,000.W ............................................................................................ 5 7,D00.W oln Rthl etic $ 11,220W of n Athl .tic 5 12,000. W ............................................................................. oln Rthl etit $ 15,32D.W ....................................................................... mm o FY 2027 FY 20n PMMP OTHER I PMMP OTHER 5 7,0M.W -.... •-$. wide ............ ........ 55,000.W .......... ............ ...:. 50000.W 28,000.W ".. $ 28,WO.W '.. $ 28,W W ryo36onita Canyon SM— Parks ..................................e..... ........... ... .............................................................. i$ 29,"w wide $ 4S, SW wide .................................................... .................................................... ......... 5 52.,000.00 .... ............ ........... ........... ........... ....,... S 52,000.W $ 52,000.W 5 52,000.00 wide $ 55,2W.W _-- _-.$ ................................................... 55,2W.W .......... ........... ........... ........... ........ :..... wide $ 74,3MM $ ],000.00 $ 7,000.W ". $ 7.000.00 in ers Park $ 243,W W _-- -_- ---- -- -- insula Park $300,000 ............. ............. ........ .......... oln Rthl etic ........... ............ S 654,250.00 iners Park $ 179,460W: ',t Newport Park $ 135,330.01); Henry .................. ..... ........... ... ............. .... ,........... ......... $ 346,830.W ........... ............ ............ ....................... ita Canyon Sports Park $ 535,320.W wide .................................................................. ............ ............. ....... .......... ........... �..... ........... ........... ....; 5 172,720.131) ''.. -. :... 410,7W.00 Drive Park ............ ............ S 32,930.00 ............. ............. orive Park ........... ............ .......... ............ ...... ....... $ 446,800.W ............... ............ ........... ... .......... ............ fie Terrace Park4W.OW.W rporc 1sl a nd Park ............. ............. ............ .......,... ................. �$ 35,570W .. ............... ............ ........... ........... ........ ........... ............ a Park $ ]3,9W.W " Ica Canyon Sports Park ........... 5 82,1W.W'. : nn el Place Pa rk ............ $ 143,WO.W ........... ............. ...... ........... ............. .......... .......... ............ ............ .............. ............ " Miguel Park ........... .. ............ ........... -........ 5 42,4W.00 ............. ............ ............ ............... ... ............ ............. ............ .......... ............... .......... ......--- ......--:.. ................. ............ ............ ............. Miguel Park aIo Hills Park $ SW,330.W Ica Creek Park ............ ........ ............. ............. .. $ 1,984,W0.W .......... ........... i[a Creek Park __. ... _- $ A,7W.W ___ __.. _.... _...• _.... wide ............................................... ................................................................. ..... S ............. ........... .........................................................................:. 289,000.W ............ ........... ........... ........... ....: S 239,OW.W S 239,000.W '..5 239,000.00 :Center Park ;lass Hill park .............................................................. ........... ............. S2W,000 ................................................... ............ ..... Ita Canyon Sports Park __... ............. •___. ............. _. _. ._.... ___. ............. ___ ................. _'.. ___. ...... ....,..... ........... $3W,000 ''.. __... _...._ aIOHI IISPark $ 81,530W ............. ................. ...... ....,--. :et Ridge Park 514,210 Joaquin Hills $]91,1]0 ". Ica Canyon Sports Park 570,000 fie Terrace Park $ 949,380.00 $ 543,00000I $ 2,270,400A0 $ 1,843,200001 S 2,350,25OA0 ! $ 2,S3 5,7 70 00 15 2,109,970.00 $ 753,00000I $ 2,1fi4,AWA0 $ 753,00000 �J Planning to build CIP Budget around approximately: • $26.4 Million in General Funds SEW POST U � T cq</FORN�P • $6.Om annual CIP allocation to CIP Fund • $5.Om from existing CIP Fund Balance • $1.Om Neighborhood Enhancement • $9.6m Facility Finance Plan • $2.5m Facility Maintenance Master Plan • $2.3m Park Maintenance Master Plan (up from $1.0m) $21.1 Million in Restricted Funds • $4.8m Tidelands • $2.3m Gas Tax • $3.Om Measure M Turnback • $2.9m SB1 • $7.1 m Water Fund • $1.Om Sewer Fund 31 • Focus Resources on Essentials (nuts & bolts infrastructure) • Keep existing backbone infrastructure in good shape (streets, pipes, lights, existing facilities and parks) • Deliver (most) key projects already in the works • In the Ocean & Harbor • Complete Lower Harbor Main Channel Dredging • Balboa Island — Continue efforts on Drainage Improvements, West End Seawalls, Collins Island Bridge Replacement • Ocean Beaches —Advocate for Sand Nourishment, Groin Field Modifications SEW PORT @� Newport Pier/McFadden Square Reconstruction U ? ew C'9</FORN`P • Traffic/Transportation/Mobility • Identify and implement next phase of Community Transit/Mobility such as Peninsula Trolley and App Based Transit • Identify and develop strategic supplemental parking areas • City Facilities • Complete and open new Sunset View Park and Bridge • Develop and approve concept for new Balboa Library and Fire Station, start final design and permitting • Construction of the new Lecture Hall Q ��WPO�T } y C'9�/FORN�P BUDGET DEVELOPMENT - EXPENDITURES AND PROGRAM ENHANCEMENTS • While the budget for next year is under development, General Fund operating expenditures are preliminarily projected to increase $6 million (2%) in FY 2024-25 • Salaries and benefits are projected to be up approximately $2.5 million (2%) • Non -Personnel Costs are projected to be up approximately $3 million (3%), which includes contract services, utilities, supplies and materials, and maintenance and repair costs • Program enhancement requests are currently under evaluation, and therefore not reflected in the expenditure outlook PO U T a„ cq</FORN�P • The pension paydown strategy is revisited each year • On June 13, 2023, the City Council adopted the budget for FY 2023-24, which included a baseline allocation of $40 million to paydown the City 's unfunded pension liability • On June 13t", the City Council also authorized an additional discretionary contribution of $5 million from the projected General Fund surplus - increasing the amount paid to CaIPERS towards the unfunded pension liability from $40 million to $45 million annually • If the city continues to commit to a pension paydown plan of $45 million in annual contributions towards its unfunded pension liability — which is $15 million more than the amount required to be paid — it is anticipated to result in eliminating the city's pension liability in 2032 PO U T a„ cq</FORN�P Given inflationary impacts and significant projects on the horizon, it is recommended that the capital funding reflected in the General Fund's proposed budget for Fiscal Year 2024-25 be increased to address the city's long-term capital needs. Potential increase: General Fund CIP Tidelands Capital Fund (HBMP) Facilities Financing Plan Fund Facilities Maintenance Fund Park Maintenance Fund $6.0 M $ 7.0 M $4.7 M $ 6.7 M $9.1 M $11.1 M $2.5 M $ 2.5 M 1.0 M 2.3 M Capital Funding in Original Budget $23.3 M $29.6 M FY 2022-23 & FY 2023-24 Surplus Funds Q ��WPO�T C'9�/FORN�P 10.8 M $34.1 M $29.6 M CODE ENFORCEMENT RESOURCES Staffing: Budget: Revenue: Schedule: 4.75 FTE $956,000 $217,000 (Administrative Fines) 7-Days a week Code Enforcement Supervisor -John Murray Senior Code Enforcement Officer -Monique Navarrete Code Enforcement Code Enforcement Officer II -Jonathan Munoz Officer I-Aydee Inzunza Code Enforcement Trainee P/T-Steven Estrada 39 Total Cases - 2023 4)400 4"� ci"j1�hl CaY� � Sul■ Puk Common Case Types 1. Property Maintenance: 14% 2. Water Quality: 13% 3. Illegal Encroachments: 11% 4. Unpermitted Construction: 10% 5. Illegal Signs: 8% 6. Leaf blower: 8% 7. Noise:6% 8. Trash Containers: 5% 9. Short Term Lodging: 4% 10. Street Vendor: 4% 40 • Reactive Enforcement (80%) • Calls, emails, online complaints from residents and business owners • Zoning, refuse, commercial signage, property maintenance • Proactive Enforcement (20%) • Water quality, gas leaf blowers, public right of way, unpermitted construction Q ��WPO�T n C'9�/FORN�P Tier 1-Trash, construction, noise (Increased in 2021) 1St Violation - $200 (State law @ $100) 2nd Violation - $300 3rd Violation - $600 Tier 2- Short term lodging, use permit, live entertainment and illegal discharge 1 St Violation - $17000 2nd Violation - $2,000 3rd Violation - $3X0 Q ��WPO�T C9�/P0fk • City has a vending ordinance • Vending on the beach is illegal • Increase in illegal vending started during COVID and has increased • Complaints received from the public and Lifeguards • Lack of coastal permit Q ��WPO�T C9�/P0 Vk • Navigating miles of beachfront on foot is hard • Properly identifying vendors • Dedicated resources needed in the summer Q ��WPO�T C9�/P0 Vk • Addressing Beach Vending is staff and labor intensive • Recommend converting part-time Code Enforcement Officer to full-time and purchase an ATV to navigate on the sand • Evaluating options for proactive enforcement • Return to City Council with proposals in time for the 2024 summer season Q ��WPO�T C'9�/FORN�P State Law requirements: • 75% diversion of organics by January 1, 2025 • 100% implementation of 3-container system Where we are currently Residential: 100% Implemented Residential Organic: 91 % Diversion Residential Recycling: Commercial: Commercial: SEW PO U � T a„ cq</FORNNP 65% Diversion 28% Diversion 28% Implemented Proposal: Increase outreach, education, and enforcement with commercial operators Staffing Changes: Refuse enforcement has two part-time officers 1. Increase to two full-time officers 2. Combine Refuse enforcement with Code Enforcement in CDD Q ��WPO�T C9�/P0vk Concerns and Impacts • 17550 STL permits • Noise • Parking • Trash • Facilities opening/operating without proper license/permits Q ��WPO�T } y C'9�/FORN�P 48 Proactive Program • Ongoing patrols of STLs during peak season • Bi-Annual (every other year) checks of STL Units: • Property maintenance, garage parking, interior noticing • Check for facilities operating/opening without licenses/permits • Check website advertisements Staffin : • One additional full time Code Enforcement Officer • Contract employee to answer 24/7 STL hotline during peak season Q ��WPO�T C'9�/FORN�P 49 • Convert a part-time CE officer to full-time Position, Vehicles, and Equipment Code Enforcement All Terrain Vehicle TOTAL Q ��WPO�T }AR y n C9�/FORN�P Hours Increase in FTE 0.25FTE Cost Schedule $56,315 Ongoing $15,000 One-time $71,315 L� • Convert two part-time (0.75) CE officers to full-time Position, Vehicles, and Equipment Refuse Enforcement TOTAL Increase in FTE 0.50 FTE Cost $70,791 $70,791 Schedule • Add one full-time CE officer Position, Vehicles, and Equipment Code Enforcement Temp Employee May -Sept Workstation TOTAL Proposed Staffing 1.0 FTE Cost $100,073 $7,200 6 200 $113,473 Schedule One-time 1. Recover the cost of one (1.0 FTE) Code Enforcement Officer and temp through the STL permit fees. • Initial Permit Fee: $217 Increase from $175 to $392 • Permit Renewal Fee: $224 Increase from $92 to $316 2. Funding Sources: • General Fund: • Environmental Liability funds: • Short Term Lodging Permit fees: • ISF Reserves for one-time costs: � SEW Pp�T U T a„ cq</FO VL $97,106 $30,000 $107,273 $21,200 SHORT TERM LODGING - FEE COMPARISON Newport Dana Point Fluunnrington Beach i Beach ansiae San Seal Beach Clemente Newport Dana Point Huntington Oceanside San Seal Beach Beach Beach Clemente CULTURAL ARTS FUNDING AND PROGRAMMING • The Cultural Arts Division of the Newport Beach Public Library hosts a variety of programs and events that are culturally enriching for residents in Newport Beach. These programs are ongoing throughout the year. • The City Arts Commission works with the Cultural Arts Division to plan and host these programs and events. The Commission acts in an advisory capacity to the City Council on all matters pertaining to artistic, aesthetic, and cultural aspects of the City. SEW POST U � T a„ cq</FORNNP • The current programs hosted by the City Arts Commission are: • Central Library Gallery Exhibits • Concerts on the Green / Marina Park • Cultural Arts Grants • Newport Beach Art Exhibition • Sculpture Exhibition in Civic Center Park • Student Art Exhibition Q ��WPO�T C'9�/FORN�P Funding for cultural arts programming, services, and staffing comes from both the City and community sources. CITY GENERAL FUND • The City provides annual funding for the Cultural Arts Division. These funds are divided into multiple spending budgets: - Programming • Professional Services • City Grants • Sculpture • Staffing Exhibition • FY 2022-23 Actual: $345,550 • FY 2023-24 Q ��W POST C'9�/FORN�P Projected: $355,300 COMMUNITY -SOURCED FUNDS - The Newport Beach Arts Foundation is a private nonprofit 501(c)(3) organization that provides financial support to the Cultural Arts Division through fundraising events and programs. • Recent support helped fund the following: • Sculpture Exhibition • Newport Beach Art Exhibition • FY 2022-23 Support: $12,500 • FY 2023-24 Support: $10,000 (to date) 58 Fiscal Year 2022-23 Expenditures PROGRAMS Central Library Gallery Exhibits $1,840 Concerts on the Green / Marina Park $24,760 Cultural Arts Grants $30,000 Newport Beach Art Exhibition $19,740 Professional Services $14,100 Sculpture Exhibition Phase VIII $171,390 Student Art Exhibition $1,030 Total Expenditures $262,860 Fiscal Year 2023-24 Projected Expenditures Central Library Gallery Exhibits $2,200 Concerts on the Green / Marina Park $27,345 Cultural Arts Grants $30,000 Newport Beach Art Exhibition $22,000 Professional Services $11,250 Sculpture Exhibition Phase IX $172,000 Student Art Exhibition $1,000 Total Expenditures $265,795 FY 2024-25 Program Enhancement Request: $47,000 u r+ s • Cultural Arts Grants - $10,000 for total grant program of $40,000 cq,FORN.P 0 Sculpture Exhibition - $37,000 to fully fund with GF 59 • Sculpture Exhibition Class Field Trips • Sculpture Exhibition Photo Contest • Additional Live Performances • PleinAir Art Event • Art in Public Spaces • Utility Box Art • Expansion of Sculpture Exhibition to other city locations • Acquisition of Sculptures for City Art Inventory • purchased and/or donated Q ��WPO�T C'9�/FORN�P Saturday, February 3, 2024 Special City Council Meeting Thursday, March 14, 2024 Tuesday, March 12, 2024 Thursday, April 11, 2024 Thursday, May 9, 2024 Tuesday, May 28, 2024 Tuesday, May 28, 2024 Thursday, May 30, 2024 Tuesday, June 11, 2024 1 Finance Committee Meeting City Council Study Session Finance Committee Meeting Finance Committee Meeting City Council Planning Session Overview of FY 2024-25 Revenue Projections Early Look at CIP Budget Proposed FY 2024-25 Expenditure Budget Review Follow -Up Review of Proposed Budget Joint City Coundur-Inance Committee Study Session City Council Study Session Finance Committee Meeting City Council Public Hearing FY 2024-25 Operating Budget Review Review of Capital Budget for FY 2024-25 CIP Finalize Recommendations to City Council Adoption of FY 2024-25 Budget QUESTIONS?