HomeMy WebLinkAboutFinance Committee Agenda Packet - February 15, 2024CITY OF NEWPORT BEACH
FINANCE COMMITTEE AGENDA
City Council Chambers - 100 Civic Center Drive, Newport Beach, CA
Thursday, February 15, 2024 - 3:00 PM
Finance Committee Members:
Will O'Neill, Mayor / Chair
Joe Stapleton, Mayor Pro Tem
Noah Blom, Council Member
Allen 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
Brittany Cleberg, Assistant Management Analyst
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 their
agenda be posted at least twenty-four (24) hours in advance of each special 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.
I.CALL MEETING TO ORDER
II.ROLL CALL
III.PLEDGE OF ALLEGIANCE
IV.PUBLIC COMMENTS
Public comments are invited on agenda and non-agenda items generally considered to be
within the subject matter jurisdiction of the Finance Committee. 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 or non-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.
V.CONSENT CALENDAR
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February 15, 2024
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Finance Committee Meeting
MINUTES OF JANUARY 11, 2024A.
Recommended Action:
Approve and file.
MINUTES OF JANUARY 11, 2024
VI.CURRENT BUSINESS
FACILITIES FINANCIAL PLAN (FFP) AND HARBOR & BEACHES MASTER
PLAN (HBMP)
A.
Summary:
Staff will provide an update on the current status of FFP and Harbor & Beaches
Master Plan funding.
Recommended Action:
Review and discuss this report, concur with staff’s recommended funding levels
for the FFP and HBMP, and provide any other related recommendations for
consideration by the City Manager and City Council.
STAFF REPORT
ATTACHMENT A - FFP
ATTACHMENT B - HBMP
STAFF PRESENTATION
SECOND QUARTER BUDGET UPDATEB.
Summary:
Staff will provide a presentation regarding the year-to-date and projected Fiscal Year
2023-24 budget performance.
Recommended Action:
Review and discuss this report and provide any recommendations for
consideration by the City Manager and City Council.
STAFF REPORT
STAFF PRESENTATION
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February 15, 2024
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Finance Committee Meeting
WORK PLAN REVIEWC.
Summary:
Staff and Finance Committee to review the proposed work plan and identify matters that
members would like placed on a future Agenda for discussion, action, or report.
Recommended Action:
Receive and file.
WORK PLAN
VII.ADJOURNMENT
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Finance Committee Regular Meeting Minutes January 11, 2024
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CITY OF NEWPORT BEACH FINANCE COMMITTEE JANUARY 11, 2024 REGULAR MEETING MINUTES I. CALL MEETING TO ORDER The meeting was called to order at 3:00 p.m. II. ROLL CALL PRESENT: Will O’Neill, Mayor/Chair
Noah Blom, Committee Member Allen Cashion, Committee Member Keith Curry, Committee Member Nancy Scarbrough, Committee Member
Joe Stapleton, Mayor Pro Tem (arrived at 3:03 p.m.)
ABSENT: William Collopy, Committee Member (excused) STAFF PRESENT: Grace K. Leung, City Manager; Jason Al-Imam, Finance Director/Treasurer; Michael Gomez, Deputy Finance Director; Shelby
Burguan, Budget Manager; Jessica Nguyen, Budget Analyst; Anthony Alannouf, Budget Analyst; Jennifer Anderson; Purchasing & Contracts
Administrator; Brittany Cleberg, Assistant Management Analyst
MEMBERS OF THE PUBLIC: Charles Klobe
III. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Committee Member Scarbrough. IV. PUBLIC COMMENTS
Chair O’Neill opened public comments on agenda and non-agenda items. Seeing none, Chair O’Neill closed public comments.
V. CONSENT CALENDAR
A. MINUTES OF NOVEMBER 9, 2023 Recommended Action: Approve and file.
MOTION: Committee Member Curry moved to approve the minutes of November 9, 2023,
seconded by Committee Member Cashion. The motion carried as follows: AYES: Blom, Cashion, Curry, Scarbrough, O’Neill NOES: None
ABSENT: Collopy (excused), Stapleton ABSTAIN: None
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Finance Committee Regular Meeting Minutes January 11, 2024
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VI. CURRENT BUSINESS A. PUBLIC AGENCY RETIREMENT SERVICES OPEB TRUST Recommended Action: Review and discuss the sub-committee’s recommendation that the City establish an Other Post-Employment Benefits Trust with Public Agency Retirement Services to prefund the liability for retiree medical benefits. Finance Director/Treasurer Al-Imam gave a presentation on the Public Agency Retirement
Services Other Post-Employment Benefits (OPEB) Trust. Previously, the City established an OPEB Pre-Funding Trust with California Employers’ Retiree Benefit Trust (CERBT), which is managed by CalPERS. On November 9, 2023, the Finance Committee authorized the formation of a sub-committee to evaluate and consider establishing an Other Post-Employment
Benefits (OPEB) Trust with Public Agency Retirement Services (PARS). The sub-committee met with representatives from PARS and unanimously supported establishing an OPEB Trust with PARS to prefund the liability for retiree medical benefits, and to transfer the assets from the CERBT, and recommended assets be invested in the “balanced” strategy. Chair O’Neill confirmed that staff’s recommendation, based upon the sub-committee’s findings,
is that the Finance Committee recommend to the City Council that the City establish an OPEB Trust with PARS to prefund the liability for retiree medical benefits and to transfer the assets from CERBT to PARS. Committee Member Scarbrough confirmed with staff that it appeared there was more flexibility afforded to the City going forward with PARS versus the CalPERS option. A straw poll was conducted in which general Finance Committee consensus was given for staff to move ahead with bringing this forward for City Council consideration. This item was received and filed. There was no further action taken. B. GENERAL FUND LONG RANGE FINANCIAL FORECAST UPDATE
Recommended Action: Receive and file. Budget Manager Burguan provided an overview presentation of the General Fund Long Range
Financial Forecast (LRFF). Information presented included the City is expected to be in a financially sound position over the next 20-year period and is in a strong financial position with its revenue base and reserves, Methodology for determining the LRFF, Major Assumptions, Revenue Assumptions, Expenditure Assumptions, Expenditure Growth Assumptions and Alternate Scenario Forecasting.
General discussion ensued concerning the various aspects of the LRFF, including opportunities to model various scenarios, including the construction of major projects, to facilitate long-range decision-making. Additional discussion ensued concerning impacts of personnel costs, revenue growth rates, and various specific projects, such as housing, in the
future and how modeling could assist in those endeavors, preparation of assumptions for revenues for the budget, the impacts of entitlements over the next ten years, the impacts of City Council decision-making on personnel matters, and examples of additional financial forecasting, including potential extra contributions to CalPERS. It was noted that staff does not include any assumptions outside of what has been directed by
the City Council as related to the forecasting presented in the LRFF, including accounting for potential increases to personnel, other than including a general percentage of compensation growth. It was confirmed by staff that negotiations with the City’s established collective bargaining units will commence in 2025.
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Finance Committee Regular Meeting Minutes January 11, 2024
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Chair O’Neill noted the Finance Committee can review the model to discuss various assumptions or scenarios, such as the implications of new capital improvement projects and associated personnel to provide operations for that project once completed, however City staff has stated that the LRFF does not include anything at this time that the City Council has not approved, because those are policy goals within the City Council’s purview.
Committee Member Scarbrough expressed interest in modeling certain scenarios at the Finance Committee level, as the City is currently entitling projects. Staff confirmed that the Finance Committee would have to provide direction in order to move forward with any modeling scenario as an exercise-only. Discussion ensued among Committee Members and staff concerning the implications of the various City Long-Range plans to ensure the City Council is paying attention to matters they know will be long-term expenses. There was general interest
among the Finance Committee to utilize the model to test various assumptions. Committee Member Scarbrough stated there are a number of projects related to the City’s Housing Element, including properties that are entitled, which have revenue streams and
impacts associated with them. Discussion ensued noting that there are costs and revenues associated with housing projects, and the importance of recognizing the unpredictability of the
timing of development. City staff noted that at the November 2023 meeting, it was requested that staff model the impact of adding $2.5 million to the annual CalPERS UAL payment after the OPEB liability is paid off.
Staff modeled this and found that if the annual UAL payment to CalPERS is increased by $2.5 million to a total of $47.5 million annually, that the City’s liability is paid down one year earlier
than currently projected, and saves the city approximately $7 million over the life of the liability, assuming CalPERS meets its projected discount rate of 6.8%.
Finance Director/Treasurer Al-Imam stated he would lean towards infrastructure needs at this
time, rather than investing the additional surplus funds into the CalPERS UAL. Overall, the General Fund is projected to be in a strong financial position over the next 20 years, however
there are some challenges ahead, including the CalPERS investment return volatility and the variability in the costs of construction for capital improvement projects.
Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed public comments.
This item was received and filed. There was no further action taken.
C. REVIEW OF THE LOS ANGELES COUNTY AND ORANGE COUNTY INVESTMENT POOLS Recommended Action: Receive and file.
Finance Director/Treasurer Al-Imam presented an overview of the Los Angeles and Orange
County Investment Pools. Information presented included a review of each County’s respective Investment Policy, and analysis of portfolio characteristics. As a result, it is staff’s
recommendation that the Los Angeles County Investment Pool be removed as an authorized investment option when the Investment Policy is reviewed by the City Council due to a variety of factors, including the extended duration of weighted average days to maturity, which is three times longer than LAIF.
Committee Member Curry provided some historical detail concerning the Los Angeles County
Pool, stated that the former distrust of Orange County (due to bankruptcy proceedings several decades prior) had been overcome, and noted Orange County now has a responsible
Treasurer.
Chair O’Neill confirmed that the reason not to add in the Orange County Investment Pool is simply because the administration of it does not have utility for the City’s own financial bookkeeping.
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Finance Committee Regular Meeting Minutes January 11, 2024
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Chair O’Neill requested the item return to the Committee as soon as practical with the recommended change to remove the Los Angeles County Investment Pool. As this was not a voting item at this meeting, a straw pool was conducted, with unanimous consensus, agreeing with staff’s recommendation as listed in the publicly noticed agenda report.
Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed public comments. This item was received and filed. There was no further action taken.
D. FINANCIAL STATEMENT AUDIT RESULTS AND RELATED COMMUNICATION
Recommended Action: Receive and file.
Finance Director/Treasurer Al-Imam introduced Marc Davis, Davis Farr LLP, who provided a summary overview of the Financial Statement Audit Results and Related Communication
update. Information presented included the scope of the audit, including the annual financial audit of the City, single audit of Federal financial assistance, and agreed-upon procedures
applied to Gann limit, management responsibilities, auditor responsibilities to express opinion on financial statements, conduct audit in accordance with Generally Accepted Accounting
Principles, and plan and perform audit to obtain reasonable, not absolute, assurance that financial statements are free from material misstatement, whether due to fraud or error.
Mr. Davis reported that the auditor issued an “unmodified opinion,” which is a clean audit
opinion, which is what the City wants to see. There were three risk components that were included in the audit, which were the new Government Accounting Standards Board (GASB)
Standard No. 96, Subscription-Based Information Technology Arrangements, capital assets additions related to construction in progress, and compliance with Federal grant requirements.
Estimates used in preparing the audit included the pension liability, OPEB liability, and claims payable, all which were found to be reasonable and have a sound basis.
In response to Committee Member Cashion, Finance Director/Treasurer Al-Imam stated that
the City tests various internal systems and controls as part of the audit process each year, including different policies and procedures.
Committee Member Curry inquired if the auditor found anything during the course of the review that the Finance Committee should be aware of or any questions that the Committee should ask of him to understand the audit and audit process. Mr. Davis responded they reach out to
the Committee and a different individual Committee Member will receive the audit questionnaire each year. There was nothing further to report this year concerning Newport
Beach. Committee Member Curry inquired if the City will be preparing for any “clawbacks” concerning Federal COVID-19 related funds. Finance Director/Treasurer Al-Imam stated the stated funds
are obligated toward projects, and that there was no apparent concern that funds might be “clawed back”. City Manager Leung reported that the City does have an ARPA allocation which they are planning to move into a project that will be spent in a timely manner. Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed public comments.
This item was received and filed. There was no further action taken. E. BUDGET AMENDMENTS FOR QUARTER ENDING DECEMBER 31, 2023 Recommended Action: Receive and file.
In response to an inquiry from Committee Member Scarbrough, staff noted that the item she referred to was concerning an Americans with Disabilities Act (ADA) matter managed by the
Community Development Department, with revenue going into restricted programs.
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Finance Committee Regular Meeting Minutes January 11, 2024
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Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed public comments. This item was received and filed. There was no further action taken. F. WORK PLAN REVIEW Recommended Action: Receive and file. A summary of items scheduled for upcoming Finance Committee meetings was provided as listed in the publicly noticed agenda report. Chair O’Neill welcomed the Finance Committee Members to attend the upcoming City Council
Study Session on February 3, 2023, at 9:00 a.m., off campus at “Oasis,” however noting that there was no obligation for them to attend. Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed public comments.
This item was received and filed. There was no further action taken.
VII. ADJOURNMENT The Finance Committee meeting adjourned at 3:52 p.m.
Attest:
___________________________________ _____________________
Will O’Neill, Chair Date Finance Committee
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CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT
Agenda Item No. 6A February 15, 2024
TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE
FROM: Finance Department Jason Al-Imam, Finance Director/Treasurer 949-644-3123, jalimam@newportbeachca.gov
SUBJECT: FACILITIES FINANCIAL PLAN (FFP) AND HARBOR & BEACHES MASTER PLAN (HBMP)
SUMMARY:
The Facilities Financial Plan (FFP) and Harbor & Beaches Master Plan (HBMP) are long-term planning tools that are used to analyze the means of financing, timing of expected
cash flows and funding requirements associated with the projects that are prioritized based on need and community goals. The FFP and HBMP have been updated to reflect the current estimated cost to fund the construction and or renovation of City facilities and harbor-related capital projects, which are presented to the Finance Committee for feedback and consideration.
RECOMMENDED ACTION: Review and discuss this report, concur with staff’s recommended funding levels for the FFP and HBMP, and provide any other related recommendations for consideration by the
City Manager and City Council. DISCUSSION: Each year, as part of the budget process, staff prepares updates to the FFP and HBMP
and by way of this report, these updates are subsequently presented to the Finance Committee to consider the adequacy of the funding allocations from the General Fund to the FFP and HBMP. Preceding this report, updates to the HBMP were reviewed by the Harbor Commission at their meeting on November 8, 2023, and preliminary discussions with the City Council regarding the Fiscal Year 2024-25 capital improvement program and
FFP were held at the planning session on February 3, 2024.
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Facilities Financial Plan (FFP) And Harbor & Beaches Master Plan (HBMP) February 15, 2024 Page 2
The dashboard presentations of the FFP and HBMP reflect a five-year outlook and also include a “future” column on applicable charts that captures the remaining projects beyond the first five years. A complete summary of projects – including the project
estimates and timeframes – are included within the respective project planning
worksheets for each plan. Since there is considerable variability in the cost estimates and timing in which the projects in the outer years of both plans may be completed, the dashboards are primarily focused on the fiscal impact of the nearer-term projects that are projected to occur in the next five-years.
Facilities Financial Plan In addition to the annual capital improvement program ("CIP"), and in accordance with Council Policy F-28 – Facilities Financial Planning Program, the City has established a long-term plan for major renovation or replacement of City facilities that have reached the
end of their useful life, as well as for the addition of new facilities. The emphasis is on
structures and adjacent grounds, rather than transportation, environmental, or other projects funded either in whole or in part by the General Fund via the routine CIP. Under current policy, the annual contribution from the General Fund to the FFP is set at
$8.6 million or 3% of General Fund revenues, whichever is greater. For Fiscal Year 2023-
24, the contribution from the General Fund to the FFP is budgeted at $9.1 million. Adequacy of Debt Service Contributions – Funding for the debt service for the Civic Center and Fire Station No. 2 comes from the FFP Fund. The debt service associated
with the 2010B and 2020 Certificates of Participation (COPs) varies by year, but is
currently approximately $8.6 million net of the expected subsidy from the U.S. Treasury on the 2010B COPs. Reliance on Fees Generated by Development Agreements – Staff annually prepares
a projection of fees related to development agreements that are expected to be received
in future fiscal years, as well as park impact fees from new developments. The estimates are subject to change with these annual updates and based on information known at this point of time regarding the status of each development project and the timing of which the funds are anticipated to be collected. These funds are deposited into the FFP Fund when
received and are available to fund FFP projects including both new and
replaced/renovated facilities. Under current policy with a minimum annual contribution from the General Fund to the FFP Fund of $8.6 million, adequate funding is available for the projects contemplated in the current FFP. The City’s Reserve Policy (Council Policy F-2) also sets a minimum reserve target for the FFP Fund equal to the maximum annual
debt service amount, which is $8.6 million in this case. The FFP also maintains a reserve
balance that equals or exceeds the level required by the Reserve Policy in each year. The FFP includes updates to the project list and corresponding project costs to reflect inflation-indexed unit costs. Under the current iteration of the FFP, adequate funds are on
hand for all FFP projects, and the minimum reserve balance remains above the $8.6
million minimum level outlined in the City’s Reserve Policy as illustrated in the chart below.
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Facilities Financial Plan (FFP) And Harbor & Beaches Master Plan (HBMP) February 15, 2024 Page 3
Adequate funds are projected to be on hand to fund projects reflected in the FFP, which
is dependent on the timing of development fees that are an integral funding component for capital projects. Therefore, given inflationary impacts and significant projects on the horizon, staff reported at the February 3rd Council Planning Session that, a potential increase of $2 million to the General Fund contribution for Fiscal Year 2024-25 is currently
under evaluation while the budget for next fiscal year is being developed.
Harbor & Beaches Master Plan The HBMP is funded from two sources – a portion of Tidelands revenues and an annual transfer from the General Fund. With the implementation of permit and rent increases
authorized by the City Council in 2010, staff was directed to deposit incremental rent
increases from certain harbor revenue sources to a new Tidelands Capital Fund. The intent was to set aside the incremental increases from these adjustments to finance critical in-Harbor capital improvements, like sea wall repair, dredging, and piers. Historically, the Tidelands Operating Fund has not generated sufficient revenue to cover the full cost of
operations, in large part because of the public safety costs (lifeguards, emergency medical
response, and police services) associated with the ocean beaches and other Tidelands property. Similarly, the incremental rents dedicated to the Tidelands Capital Fund are not sufficient to fund the capital improvement projects contemplated in the HBMP. Due to the ongoing gap between Tidelands capital revenues and expenditures, the City’s General
Fund has transferred a variable amount to provide sufficient funding for HBMP projects to
be completed. In Fiscal Year 2023-24, the General Fund has contributed $4.7 million to the Tidelands Capital Fund. In addition, $5.3 million is projected to be deposited into the Tidelands Capital Fund in Fiscal Year 2023-24, which is derived from incremental revenue from certain harbor revenue sources (e.g. property leases, piers, etc.).
Pursuant to the Finance Committee’s recommendation in February 2022, the current funding policy for the HBMP reflects an index of the General Fund contributions at $4.7 million in Fiscal Year 2023-24 increasing annually thereafter by 2.5%.
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
FFP Reserve Balance
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Facilities Financial Plan (FFP) And Harbor & Beaches Master Plan (HBMP) February 15, 2024 Page 4
This HBMP includes considerable updates to the project list and corresponding project costs to reflect inflation-indexed unit costs. This has resulted in approximately $35.5 million of additional project costs compared to the previous iteration of the HBMP presented on
February 16, 2023.
This iteration of the HBMP also includes updates to the anticipated external contributions, primarily to reflect the current estimate of grant receipts for future dredging projects.
Adequate funds are projected to be on hand to fund the HBMP projects for the next fifteen years. However, given inflationary impacts and significant projects on the horizon, staff reported at the February 3rd Council Planning Session that, a potential increase of $2 million to the General Fund contribution to the HBMP for Fiscal Year 2024-25 is currently under evaluation while the budget for next fiscal year is being developed. Staff is continuing to
include the annual inflationary adjustment and will make recommendations at such time that staff may model that inadequate funding is available in the HBMP to cover the projects.
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Facilities Financial Plan (FFP) And Harbor & Beaches Master Plan (HBMP) February 15, 2024 Page 5
Facilities Maintenance Management Plan (FMMP) It should also be noted that the City has a separate funding program known as the FMMP, which sets aside funds for maintenance efforts related to City facilities. In Fiscal Year 2023-24, the General Fund contribution was $2.5 million and is scheduled to increase by 2.5%
annually until such time as the Public Works Department determines that a change is
appropriate due to a material increase in the number of City facilities being maintained or other factors. At this time, staff is not recommending any changes to the General Fund contributions toward this program.
Submitted by:
/s/ Shelby Burguan
____________________________
Shelby Burguan
Budget Manager
Attachments: A. Facilities Financial Plan B. Harbor & Beaches Master Plan
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ATTACHMENT A
FACILITIES FINANCIAL PLAN
4
1 2
3 4
5 6
CITY OF NEWPORT BEACH FACILITIES FINANCIAL PLANNING DASHBOARD
0.00%
1.00%
2.00%
3.00%
4.00%
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4
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2
5
20
2
6
20
2
7
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2
8
20
2
9
GF Contribution to FFP
as a Percent of GF Revenue
GF Contribution % Budget Debt Service ‐ as % of Revenues
$7,500,000
$8,000,000
$8,500,000
$9,000,000
$9,500,000
$10,000,000
$10,500,000
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
GF Contribution to FFP Compared
to Debt Service
GF Contribution to FFP Debt Service
‐
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
20
2
4
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2
5
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2
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2
8
20
2
9
Fu
t
u
r
e
(2
0
3
0
‐
20
6
4
)
FFP Reserve Balance
‐
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
20
2
4
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9
Fu
t
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r
e
(2
0
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‐20
6
4
)
Project Funding
Cash Funded Construction Debt Funded Construction
Cash Contributions
GF contributions equal to $8.6m/year (level dollar)
GF contributions equal to 3% of annual General Fund revenue
GF contributions equal to 5% of annual General Fund revenue
GF contributions equal 3% but not less than $8.6m/year
‐
5,000,000
10,000,000
15,000,000 Cash Contributions
Annual GF Contributions Periodic GF or One‐time Transfers In*
Private Contributions Interest Earnings
‐
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
Fu
t
u
r
e
(2
0
3
0
‐20
6
4
)
Project Expenditures
GF contributions equal 3% but not less than $8.6m/year (highest of debt service) | 50% of Development Fees received
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Project Planning Worksheet Last Updated 02/07/2024
Active Projects Current Age From:
Ref
New/Repl
acement Function Project
Yr Built /
Refurb
OG yr
Built Repl Sq Ft Est $/Sq Ft 2024
Useful
Life
Years to
Start Project Estimate FY Design Year
FY Const Start
Year
FV Cost Est @ 2.5%
Growth Private Contribtions Net Proposed Cost
5 R Municpal Operations Corporation Yard (Fueling and Transfer Station) TBD TBD NA 40 0 6,900,000 2023 2024 6,900,000 4,941,281 1,958,719
4RGen Gov 15th Street Beach Restroom 1961 1961 1,100 1,200 63 60 1 1,320,000 2023 2025 1,353,000 1,353,000
6 R Fire/Library FS 1 ‐ Peninsula/Balboa Library 1962 1962 9,925 1,000 62 60 1 9,925,000 2023 2025 10,173,125 10,173,125
7RRec Facility Bonita Creek ‐ Artificial Turf Replacement 2015 2015 157,355 12 9 10 2 1,888,260 2025 2026 1,983,853 1,983,853
36 R Harbor Balboa Yacht Basin Buildings 1950 1950 18,000 800 74 60 4 14,400,000 2025 2028 15,894,906 15,894,906
37 N Gen Gov PCH Ped Bridge at Superior TBD TBD 5 20,000,000 2026 2029 22,628,164 13,576,899 9,051,266
38 R Rec Facility Grant Howald ‐ Artificial Turf Replacement 2021 2021 66,000 12 3 10 7 792,000 2030 2031 941,439 941,439
8 R Police Police Station 1973 1973 60,000 900 51 60 9 54,000,000 2030 2033 67,438,600 67,438,600
9RRec Facility Newport Theatre Arts Center 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 Joaquin Hills Park) 1974 1974 2,750 800 50 60 10 2,200,000 2031 2034 2,816,186 2,816,186
3RRec Facility Arroyo Park Synthetic Turf Field 2024 2024 102,500 12 0 10 10 1,230,000 2032 2034 1,574,504 1,574,504
12 R Fire FS 3 ‐ Santa Barbara 1971 1971 13,500 900 53 60 11 12,150,000 2032 2035 15,941,853 15,941,853
13 R Fire Lifeguard HQ Replacement 1988 1965 3,000 900 36 50 14 2,700,000 2035 2038 3,815,029 3,815,029
15 R Rec Facility Community Youth Center (CYC) ‐ Grant Howald 2008 1988 5,658 850 16 30 14 4,809,300 2035 2038 6,795,415 6,795,415
10 R Fire FS 6 ‐ Mariners (living area rebuild) 2009 1957 3,000 850 15 30 15 2,550,000 2036 2039 3,693,160 3,693,160
14 R Rec Facility Carroll Beek Center 2010 1980 1,500 1,000 14 30 16 1,500,000 2037 2040 2,226,758 2,226,758
17 R Rec Facility Cliff Drive Community Room 2022 1960 761 1,000 2 30 28 761,000 2051 2052 1,519,333 1,519,333
18 R Fire FS 4 ‐ Balboa Island 1994 1994 4,600 900 30 60 30 4,140,000 2051 2054 8,683,930 8,683,930
16 R Rec Facility Bonita Creek Community Ctr. 2024 1988 2,876 850 0 30 30 2,444,600 2051 2054 5,127,714 5,127,714
19 R Fire FS 8 ‐ Npt. Coast 2002 1995 7,000 900 22 60 31 6,300,000 2052 2055 13,545,043 13,545,043
20 R Library Library‐Central 2013 1997 65,000 850 11 60 33 55,250,000 2054 2057 124,801,510 124,801,510
2RRec Facility Newport Coast Pickleball Court 2024 2024 28,700 45 0 40 40 1,291,500 2062 2064 3,467,760 3,467,760
21 R Library Library‐Mariners 2006 2006 15,300 850 18 60 42 11,478,750 2063 2066 32,381,499 32,381,499
22 R Fire FS 7 ‐ SAH 2007 2007 11,000 900 17 60 43 9,900,000 2064 2067 28,626,049 14,313,024 14,313,024
23 R Rec Facility Newport Coast Community Ctr. 2007 2007 16,900 850 17 60 43 14,365,000 2064 2067 41,536,686 41,536,686
39 R Rec Facility CDM Concessions/LGHQ 2007 2007 2,338 850 17 60 43 1,987,300 2064 2067 5,746,318 5,746,318
24 R Rec Facility Girls & Boys Club (East Bluff Park) 2019 1971 11,800 850 5 50 45 10,030,000 2066 2069 30,470,170 30,470,170
25 R Rec Facility OASIS Senior Ctr. 2010 2010 43,200 850 14 60 46 36,720,000 2067 2070 114,340,604 114,340,604
26 R Gen Gov Civic Center 2013 2013 123,000 850 11 60 49 104,550,000 2070 2073 350,585,089 350,585,089
27 R Gen Gov Council Chambers 2013 2013 5,600 850 11 60 49 4,760,000 2070 2073 15,961,598 15,961,598
28 R Rec Facility Marina Park 2015 2015 24,390 850 9 60 53 20,731,500 2074 2077 76,735,370 76,735,370
29 R Fire FS 6 ‐ Mariners (apparatus bay only) 2018 1957 1,436 900 6 60 54 1,292,400 2075 2078 4,903,269 4,903,269
30 R Fire/Library FS 5 and CDM Library 2019 2019 10,300 900 5 60 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 1,972,000 2079 2082 8,258,309 8,258,309
32 R Fire FS 2 ‐ Fire Station No 2 2022 1952 11,600 900 2 60 58 10,440,000 2080 2082 43,720,457 43,720,457
33 R Fire Newport Jr. Guard Building 2024 2024 5,400 850 0 60 60 4,590,000 2081 2084 20,195,035 20,195,035
1 R Library Library Lecture Hall 2025 2025 9,814 1,800 0 60 61 17,665,200 2082 2085 79,666,245 79,666,245
34 R Gen Gov Civic Center Parking Structure (450 Stalls) 2013 2013 450 22,000 11 75 64 9,900,000 2085 2088 48,079,792 48,079,792
35 R Gen Gov Superior Ped/Bike Bridge 2024 2024 3,820 550 0 75 75 2,101,000 2096 2099 13,388,008 13,388,008
Total 1,243,601,307
Unfunded/Unapproved Potential Projects
ARec Facility Pool Complex 8,000,000 8,000,000
B Municpal Operations Utilities Yard 1970 1970 56,882 800 54 60 6 45,505,600 2027 2030 52,772,545 52,772,545
C Municpal Operations Corporation Yard 1984 1984 88,243 800 60 20 70,594,400 2041 2044 115,677,144 115,677,144
DRec Facility Back Bay Science Center 2007 2007 12,925 800 50 43 10,340,000 2064 2067 29,898,318 29,898,318
ERec Facility West Newport Community Center TBD TBD 11,000 850 9,350,000 9,350,000 9,350,000
15
5678910
2024 2025 2026 2027 2028 2029
AFFORDABILITY ASSUMPTIONs
General Fund Revenues 286,350,986 292,742,708 300,948,927 312,739,958 322,789,557 336,938,664
GF Revenue Growth Assumption 0.54% 2.23% 2.80% 3.92% 3.21% 4.38%
FFP Contributions @ 3% of GF Revenues 8,590,530 8,782,281 9,028,468 9,382,199 9,683,687 10,108,160
GF Annual Contribution % of Revenue (assuming $8.6 M/yr or 3%, whichever is greater) 3.03% 3.00% 3.00% 3.00% 3.00% 3.00%
Debt Service as % of GF Revenues 3.00% 2.92% 2.84% 2.73% 2.64% 2.52%
SUMARY FFP FUND SOURCES AND USES
Beginning FFP Balance 24,800,490 33,978,978 40,141,802 42,217,469 44,837,726 44,604,223
Sources
Annual GF Contributions 8,677,620 8,782,281 9,028,468 9,382,199 9,683,687 10,108,160
Periodic GF or One‐time Transfers In 5,845,391
Private Contributions 9,377,120 6,529,498 5,453,848 4,700,000 ‐ ‐
Park In Lieu 154,000 ‐ 846,076 ‐ ‐ ‐
Interest Earnings 248,005 339,790 401,418 844,349 896,755 892,084
Debt Funding ‐ ‐ ‐ ‐ ‐ ‐
Total Sources:24,302,136 15,651,569 15,729,810 14,926,548 10,580,441 11,000,244
Uses
Debt Service (8,587,208) (8,550,433) (8,542,924) (8,535,855) (8,519,104) (8,507,217)
Other Fiscal Charges (11,000) (11,000) (11,000) (11,000) (11,000) (11,000)
Project Uses (6,525,439) (927,313) (5,100,219) (3,759,436) (2,283,839) (9,647,325)
Total Uses:(15,123,647) (9,488,745) (13,654,143) (12,306,292) (10,813,944) (18,165,542)
Projected FFP Balance 33,978,978 40,141,802 42,217,469 44,837,726 44,604,223 37,438,926
Projected FFP Balance reserved for park in lieu ‐ ‐ 846,076 846,076 846,076 846,076
Sources and Uses Proforma
16
ATTACHMENT B
HARBOR & BEACHES MASTER PLAN
HARBOR & BEACHES MASTER PLAN DASHBOARD TRUE Updated: 02/07/2024
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Grants
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General Fund Contributions
Interest Earnings
Tidelands Capital Fund Revenues
Bulkhead, $303.1,
79%
Dredging, $16.3, 4%
Gate Valves, $3.3, 1%
Other, $2.7, 1%
Piers, $47.0, 12%
Sand, $4.5, 1%
Water Quality, $0.6, 0%Slips Marina, $7.9, 2%
Expenditures by Type (millions)
With external contributions (grants) as indicated on project list
Increment Revenue,
$297 , 44%
General Fund
Contributions, $348 , 51%
Periodic General Fund Contributions or
One-Time Transfers, $2 , 0%Grants, $37 , 5%
Revenues by Type (millions)(All Years)
(All Years)
17
Last Updated: 02/07/2024 2024
Ref #Project Category
Units
Measurement Total Units
Today's Unit
Cost
Current
Age:
Estimated
Useful Life Years to Start Project Estimate
FY Design Start
Year
FY Const Start
Year
FV Cost Est @2.5%
Growth
External
Contributions Net Proposed Cost
UTILITIES
32 Tide Gate Valves (Peninsula): Replace Gate Valves EA 62 $50,000 ** 25 3 $3,100,000 2025 2027 $3,338,361 $3,338,361
SUBTOTAL $3,100,000 $3,338,361 $0 $3,338,361
BULKHEAD/STRUCTURES
39 Lower Castaways: Bulkhead Replace Bulkhead LF 265 $10,000 ** 80 10 $2,650,000 2032 2034 $3,392,224 $3,392,224
41 Balboa Island, N, S, E & GC: Boardwalk & Perimeter Drainage
System only (Little Island not include ~42k SF)
Other SF 92,000 $25 ** 80 4 $2,300,000 2026 2028 $2,538,770 $2,538,770
45 Balboa Island: Replace Seawall GC Bulkhead LF 3,026 $12,000 94 81 10 $36,312,000 2026 2034 $46,482,430 $46,482,430
46 Balboa Island: Replace Seawall W Bulkhead LF 1,470 $12,000 94 80 4 $17,640,000 2026 2028 $19,471,259 $19,471,259
47 Balboa Island: Replace Seawall N, S & E Bulkhead LF 6,700 $12,000 94 82 15 $80,400,000 2026 2039 $116,443,173 $116,443,173
61 Bulkhead (American Legion): Replace Bulkhead LF 336 $10,000 67 95 32 $3,360,000 2053 2056 $7,404,623 $7,404,623
65 Bulkhead (West Newport): Replace Bulkhead LF 1,722 $10,000 ** 80 2 $17,220,000 2023 2026 $18,091,763 $18,091,763
66 Bulkhead (Corona Del Mar): Replace Bulkhead LF 175 $10,000 ** 80 21 $1,750,000 2042 2045 $2,939,268 $2,939,268
67 Bulkhead (Promontory Bay): Replace Bulkhead LF 1,158 $10,000 59 80 21 $11,580,000 2042 2045 $19,449,558 $19,449,558
69 Bulkhead (Rhine Wharf): Replace Bulkhead LF 343 $10,000 64 80 16 $3,430,000 2036 2040 $5,091,854 $5,091,854
71 Bulkhead (Street Ends - Peninsula): Replace Bulkhead LF 2,217 $10,000 ** 80 2 $22,170,000 2023 2026 $23,292,356 $23,292,356
27 Bulkhead (Balboa Yacht Basin): Replace Bulkhead LF 1,370 $10,000 39 80 41 $13,700,000 2062 2065 $37,705,009 $37,705,009
37 Bulkhead (Marina Park): Replace Bulkhead LF 857 $10,000 9 90 81 $8,570,000 2101 2105 $0 $0
SUBTOTAL $221,082,000 $302,302,287 $0 $302,302,287
PUBLIC PIERS - REPAIR / REPLACE
11 Public Pier (15th St): Float only Piers EA 1 $75,000 ** 20 1 $75,000 2021 2025 $76,875 $76,875
12 Public Pier (19th St): Float only Piers EA 1 $80,000 ** 20 1 $80,000 2021 2025 $82,000 $82,000
13 Public Pier (Coral Ave): Float only Piers EA 1 $90,000 38 20 1 $90,000 2021 2025 $92,250 $92,250
14 Public Pier (Fernando St): Float only Piers EA 1 $60,000 ** 20 1 $60,000 2021 2025 $61,500 $61,500
15 Public Pier (M St): Float only Piers EA 1 $70,000 ** 20 1 $70,000 2021 2025 $71,750 $71,750
16 Public Pier (Opal Ave): Float & Gangway only Piers EA 1 $85,000 ** 20 1 $85,000 2021 2025 $87,125 $87,125
17 Public Pier (Park Ave): Float & Gangway only Piers EA 1 $85,000 ** 20 1 $85,000 2021 2025 $87,125 $87,125
18 Public Pier (Washington St): Float only Piers EA 1 $70,000 ** 20 1 $70,000 2021 2025 $71,750 $71,750
28 Ocean Piers Biennial Maintenance - (Balboa &Newport)Piers EA 1 550,000 83 0 1 $550,000 2024 2025 $563,750 $563,750
29 Public Pier (29th St): Pier, Gangway & Float Piers EA 1 $250,000 ** 20 1 $250,000 2022 2024 $256,250 $256,250
30 Public Pier (Emerald Ave): Float only Piers EA 1 $90,000 37 20 1 $90,000 2021 2025 $92,250 $92,250
31 Public Pier (Sapphire Ave):Float & Gangway only Piers EA 1 $95,000 ** 20 1 $95,000 2021 2025 $97,375 $97,375
42 Balboa Yacht Basin Slips: Replace Slips Marina EA 172 $35,000 38 40 1 $6,020,000 2023 2025 $6,170,500 $6,170,500
52 Public Pier (15th St): Pier & Gangway (aluminum only)Piers EA 1 $150,000 ** 40 16 $150,000 2037 2040 $222,676 $222,676
74 Public Pier (19th St): Pier Platform & Gangway Piers EA 1 $70,000 ** 40 16 $70,000 2037 2040 $103,915 $103,915
53 Public Pier (Coral Ave): Pier only Piers EA 1 $125,000 38 40 16 $125,000 2037 2040 $185,563 $185,563
54 Public Pier (Emerald Ave): Pier only Piers EA 1 $125,000 37 40 16 $125,000 2037 2040 $185,563 $185,563
55 Public Pier (Fernando St): Pier only Piers EA 1 $125,000 ** 40 16 $125,000 2037 2040 $185,563 $185,563
56 Public Pier (M St): Pier only Piers EA 1 $175,000 38 40 16 $175,000 2037 2040 $259,788 $259,788
57 Public Pier (Opal Ave): Pier only Piers EA 1 $125,000 ** 40 16 $125,000 2037 2040 $185,563 $185,563
58 Public Pier (Park Ave): Pier only Piers EA 1 $125,000 ** 40 16 $125,000 2037 2040 $185,563 $185,563
59 Public Pier (Sapphire Ave): Pier only Piers EA 1 $125,000 ** 40 16 $125,000 2037 2040 $185,563 $185,563
60 Public Pier (Washington St): Pier only Piers EA 1 $150,000 ** 40 16 $150,000 2037 2040 $222,676 $222,676
62 Public Pier (Rhine Wharf): Float only Piers EA 1 $200,000 16 40 23 $200,000 2045 2047 $352,922 $352,922
64 Public Pier (Grand Canal, Balboa Ave): Pier Platform Piers EA 1 $25,000 6 20 14 $25,000 2037 2038 $35,324 $35,324
68 Public Pier (Rhine Wharf): Pier Platform & Gangway (aluminum)
only
Piers EA 1 $140,000 16 50 33 $140,000 2055 2057 $316,239 $316,239
70 Marina Park Slips: Replace Slips Marina EA 23 $35,000 8 40 31 $805,000 2052 2055 $1,730,755 $1,730,755
72 Public Pier (Balboa Marina West): Float only Piers EA 1 $400,000 2 40 40 $400,000 2062 2064 $1,074,026 $1,074,026
73 Public Pier (Balboa Marina West): Gangway (aluminum)Piers EA 1 $70,000 0 50 50 $70,000 2072 2074 $240,598 $240,598
26 Public Pier (Central Ave): Pier Platform & Gangway (aluminum) only Piers EA 1 $140,000 6 50 43 $140,000 2065 2067 $404,813 $404,813
75 Public Pier (Central Ave): Float only Piers EA 1 $200,000 6 40 33 $200,000 2055 2057 $451,770 $451,770
10 Ocean Pier: Replace Newport Piers EA 1 $20,000,000 83 85 3 $20,000,000 2024 2027 $21,537,813 $21,537,813
23 Ocean Pier: Replace Balboa Piers EA 1 $15,000,000 83 85 13 $15,000,000 2034 2037 $20,677,666 $20,677,666
76 Public Swim Float (10th St): Replace Piers EA 1 $35,000 3 20 18 $35,000 2040 2041 $54,588 $54,588
77 Public Swim Float (Ruby Ave): Replace Piers EA 1 $35,000 3 20 18 $35,000 2040 2041 $54,588 $54,588
HARBOR & BEACHES MASTER PLAN PROJECTS
18
Ref #Project Category
Units
Measurement Total Units
Today's Unit
Cost
Current
Age:
Estimated
Useful Life Years to Start Project Estimate
FY Design Start
Year
FY Const Start
Year
FV Cost Est @2.5%
Growth
External
Contributions Net Proposed Cost
SUBTOTAL $45,965,000 $56,664,036 $0 $56,664,036
DREDGING
2 Dredging & Beach Maintenance (Grand Canal) Dredging CY 1 $1,500,000 ** 10 3 $1,500,000 2025 2027 $1,615,336 $1,615,336
9 Dredging (Lower Bay Channels): Ongoing Maintenance Dredging CY 1,200,000 $19 ** 30 1 $22,800,000 2019 2024 $22,800,000 $10,000,000 $12,800,000
25 Bathymetry Survey (Newport Island Channels) Dredging EA 1 $75,000 ** ** 2 $75,000 2026 2026 $78,797 $78,797
43 Dredging (Balboa Yacht Basin)Dredging CY 25,600 $70 38 40 1 $1,792,000 2023 2025 $1,836,800 $1,836,800
48 Dredging (Upper Bay Catch Basins)Dredging CY 500,000 $30 14 20 6 $15,000,000 2027 2030 $17,395,401 $17,395,401 $0
49 Dredging (Upper Bay Channels)Dredging CY 250,000 $30 14 21 6 $7,500,000 2027 2030 $8,697,701 $8,697,701 $0
SUBTOTAL $48,667,000 $52,424,035 $36,093,102 $16,330,933
FERRY & WHARF REPAIR / REPLACE
35 Ferry Landing, Bulkhead & Restroom (Agate Ave)Bulkhead EA 1 $1,500,000 93 60 4 $1,500,000 2026 2028 $1,655,719 $1,655,719
36 Ferry Landing & Bulkhead (Palm St)Bulkhead EA 1 $1,500,000 93 60 4 $1,500,000 2026 2028 $1,655,719 $1,655,719
SUBTOTAL $3,000,000 $3,311,439 $0 $3,311,439
WATER QUALITY
20 Water Quality: TMDL Compliance Water Quality LS 1 $200,000 ** Ongoing 1 $200,000 2024 2024 $205,000 $205,000
33 Vessel Sewage Pumpout Replacement (4 locations) Water Quality EA 5 $23,000 3 7 4 $115,000 2027 2028 $126,938 $86,250 $40,688
78 Oil Collection / Hazmat Center (Marina Park) Water Quality EA 1 $400,000 0 25 $400,000 2025 2026 $400,000 $400,000
SUBTOTAL $715,000 $731,938 $86,250 $645,688
BEACH NOURISHMENT - HARBOR & OCEAN
22 Central Peninsula Sand Nourishment (Ocean Beach)Sand CY 1,000,000 $15 ** 20 4 $15,000,000 2025 2028 $16,557,193 $12,417,895 $4,139,298
44 Surfside/Sunset Beach Sand Nourishment Stage 14 Sand LS 1 $300,000 0 7 6 $300,000 2025 2030 $347,908 $347,908
51 Public Bay Beaches: Sand Nourishment (annual)Other LS 1 $125,000 ** Ongoing 1 $125,000 2025 2025 $128,125 $128,125
SUBTOTAL $15,425,000 $17,033,226 $12,417,895 $4,615,331
MISCELLANEOUS
79 Mooring Field Optimization (C Field pilot)Moorings LS 1 $450,000 ** ** 2 $450,000 2024 2026 $472,781 $472,781
80 Lower Castaways Plan
SUBTOTAL $450,000 $472,781 $0 $472,781
GRAND TOTAL $338,404,000 $436,278,104 $48,597,247 $387,680,857
COMPLETED
38 Seawall (Balboa Island N & S): Extend Cap Bulkhead LF 7,000 $100 94 20 $0 2014 2017 $0 $0
40 Seawall (Balboa Island, West End): Extend Cap Bulkhead LF 1,300 $100 94 20 $0 2014 2017 $0 $0
50 Bulkhead (Edgewater) Extend Cap Bulkhead LF 145 $303 7 20 $0 2017 2017 $0 $0
1 Arches Drain: Dry Weather Diversion Drain LS 1 $860,000 7 80 1 $0 2017 2019 $0 $839,500 $0
3 Bilge Pumpout Dock/Oil Collection Center (BYB) Water Quality LS 2 $100,000 ** 15 1 $0 2018 2020 $0 $0
5 Public Swim Float (10th St)Other EA 1 $30,000 ** 20 1 $0 2018 2020 $0 $0
6 Public Swim Float (Ruby Ave NBF)Other EA 1 $30,000 ** 20 1 $0 2018 2020 $0 $0
7 Bilge Pumpout Dock/Oil Collection Center Water Quality EA 1 $20,000 0 0 1 $0 2018 2021 $0 $0
8 Bulkhead (American Legion): Repair Bulkhead LS 1 $1,200,000 66 40 1 $0 2019 2023 $0 $0
TOTAL $1,040,503 $0 $0 $0 $0
POTENTIAL PROJECTS
A Onshore Mooring Enhancements Moorings $0 $0 $0
B Multiple Vessel Mooring System (MVMS) - City Moorings Moorings EA 6 $45,000 ** 20 $270,000 2024 2024 $270,000 $270,000
C Mooring Field Optimization Moorings EA 500 $0 $0 $0
TOTAL $45,000 $270,000 $270,000 $0 $270,000
** denotes “unknown”.
19
HARBOR & BEACHES MASTER PLAN SOURCES AND USES PROFORMA
8 9 10 11 12 13
2024 2025 2026 2027 2028 2029
AFFORDABILITY ASSUMPTIONS
Tidelands Capital Fund Revenues 5,694,443 5,779,860 5,866,558 5,954,556 6,043,875 6,134,533
Growth Assumption 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Debt Service as % of Revenues 21.95% 21.63% 21.31% 20.99% 15.33% 8.15%
Harbor Capital Balance as % of Debt Service 3205.84% 3935.01% 3597.00% 3452.17% 3733.20% 4398.07%
HARBOR CAPITAL SOURCES Budgeted
Beginning Harbor Capital Balance 37,111,810 40,072,981 49,187,610 44,962,535 43,152,073 34,594,053
Sources
Increment Revenue Projections 5,258,302 5,393,936 5,420,255 5,483,806 5,603,302 5,745,802
Interest Earnings 436,141 385,924 446,303 470,751 440,573 388,731
General Fund Contributions 4,715,000 4,832,875 4,953,697 5,077,539 5,204,478 5,334,590
Periodic GF or One-time Transfers
Grants 1,000,000 5,500,000 3,500,000 - 8,625 47,438
Total Sources (does not include grants): 11,409,443 16,112,735 14,320,255 11,032,096 11,256,977 11,516,560
Uses
Debt Service (1,250,000) (1,250,000) (1,250,000) (1,250,000) (926,659) (500,000)
Other Fiscal Charges - - - - - -
Project Uses (7,198,272) (5,748,106) (17,295,330) (11,592,558) (18,888,338) (23,620,273)
Transfers Out - - - - - -
Less: Cash Proj Funding
Total Uses: (8,448,272) (6,998,106) (18,545,330) (12,842,558) (19,814,997) (24,120,273)
Projected Harbor Capital Balance 40,072,981 49,187,610 44,962,535 43,152,073 34,594,053 21,990,339
20
ITEM NO. 6A1 FACILITIES FINANCIAL PLAN
(FFP) AND HARBOR & BEACHES MASTER PLAN
(HBMP)
ATTACHMENT A
PRESENTATION – ADDITIONAL MATERIALS RECEIVED
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FACILITIES FINANCIAL PLAN (FFP) AND HARBOR & BEACHES MASTER PLAN (HBMP)
February 15, 2024
Finance Committee
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BACKGROUND
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•The FFP and HBMP are long-term planning tools
•Outlined in City Council Policy F-28 –Facilities Financial Planning Program
•Funding for:
•Renovation or replacement of City facilities that have reached the end of their useful life
•Addition of new City facilities
•Staff prepares updates to the FFP and HBMP annually in consultation with the Public Works Department
•The Harbor Commission reviewed the HBMP at their meeting on November 8th
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FACILITIES FINANCIAL PLAN
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•The FFP plans for the new construction or major reconstruction or replacement of large city facilities
•The annual 3% contribution for FY2023-24 was $9.1 million, which included $8.7 million for debt service and $0.4 million for projects
•Debt service for debt-financed FFP projects is funded from the FFP Fund
•These payments currently amount to just over $8.7 million per year
•$7.7 million for the Civic Center Certificates of Participation
•$1 million for the Fire Station No. 2 Certificates of Participation
•The city also contributed an additional $5.4 million to the FFP in FY 2023-24 from current year structural surplus and prior year-end surplus.
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FACILITIES FINANCIAL PLAN
4 25
FFP RELIANCE ON DEVELOPMENT AGREEMENTS
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•Under current policy, the FFP is prepared with all development fees and park fees projected to be generated from future known projects included as a revenue source
•These revenues are an important source of funds for the FFP
•Due to the sizable nature of some of the contributions, timing differences could create challenges in maintaining the fiscal health of the FFP Fund
•Examples of Development Agreements included in the FFP model:
•Uptown Newport
•Newport Airport Village
•Residences at 4400 Von Karman
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FACILITIES FINANCIAL PLAN
6
•The plan includes updated project estimates from Public Works.
•Inflation and supply chain issues have affected project costs.
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FACILITIES FINANCIAL PLAN RESERVES
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•The city currently has $29 million in FFP reserves, which accounts for the $5.2 million appropriation for the increase in the city’s share for the Library Lecture Hall. However, approximately $10 million is required to fund the construction of the Balboa Library/ Fire Station No. 1 project.
•Given inflationary impacts and significant projects on the horizon, staff reported at the February 3rd Council Planning Session that, a potential increase of $2 million to the General Fund contribution for Fiscal Year 2024-25 is currently under evaluation while the budget for next fiscal year is being developed.
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(2
0
3
0
-
20
6
4
)
Mi
l
l
i
o
n
s
FFP Reserve Balance
28
HARBOR & BEACHES MASTER PLAN
8
•The plan includes updated project estimates from Public Works.
•Inflation and supply chain issues have affected project costs.
29
HBMP REVENUE SOURCES
9
•Plan funding comes from the General Fund and
Tidelands revenues and is also 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.
30
HARBOR & BEACHES MASTER PLAN
10 31
HARBOR & BEACHES MASTER PLAN
11
•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
32
HARBOR & BEACHES MASTER PLAN RESERVES
12
•The Tidelands Fund currently has $40 million in capital reserves.
•Given inflationary impacts and significant projects on the horizon, staff reported at the February 3rd Council Planning Session that, a potential increase of $2 million to the General Fund contribution for Fiscal Year 2024-25 is currently under evaluation while the budget for next fiscal year is being developed.
33
FACILITIES MAINTENANCE MANAGEMENT PLAN
13
•The FMMP funds maintenance related items to City facilities
•City maintains over 90 buildings and facilities
•Annual contributions in the plan are $2.5 million
•Public Works prepares an update to the FMMP annually
•The current contributions are sufficient to fund planned project
34
RECOMMENDATIONS
14
Review and discuss this report, concur with the funding levels, and provide feedback regarding the presented information
35
15
Questions?
36
CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT
Agenda Item No. 6B February 15, 2024
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE COMMITTEE
FROM: Finance Department Jason Al-Imam, Finance Director / Treasurer 949-644-3123, jalimam@newportbeachca.gov
SUBJECT: SECOND QUARTER BUDGET UPDATE
SUMMARY:
The Finance Department prepares quarterly financial reports to review the status of revenues and expenditures for the City’s General Fund and to monitor budgetary trends in other City funds. This report contains information on revenues, expenditures, and
estimated fund balance for the second quarter of Fiscal Year 2023-24.
The FY 2023-24 second quarter financial report provides an analysis of the City’s financial activity from July through December 2023. A $7.7 million unrestricted General Fund operating surplus is projected for FY 2023-24 based on information currently available through the end of the second quarter.
RECOMMENDED ACTION: Review and discuss this report and provide any recommendations for consideration by the City Manager and City Council. DISCUSSION: Economic Overview
After twenty-nine months of post-pandemic jobs growth in the State of California dating back to April 2021, employment growth in California was flat in September 2023 and declined in October 2023. Unemployment is rising, and California consumers and businesses are dialing back spending. Additionally, home sales continue to decline amid
rising mortgage rates, which has resulted in higher home prices. The current median price
of a single-family residence in Newport Beach is $3,050,000, which is the highest in Orange County. Although the City is projecting a decline in sales tax revenue that is largely due to a shift in consumer spending from taxable goods to nontaxable items, the
37
Second Quarter Budget Update February 15, 2024 Page 2
economic outlook for Newport Beach remains bright, which is primarily due to consistent and vigorous demand for real estate in Newport Beach that drives assessed property values higher in spite of a slowdown in home sales. For example, the city has never seen
a decline in assessed values over the last twenty years – even during the Great
Recession, which is a significant contributor to the city’s fiscal stability. General Fund Revenues Most revenue categories performed at or higher than their budgeted levels last year due
to more favorable economic conditions than what was originally anticipated in the adopted
budget. Growth in many areas has led to a $0.6 million projected increase in General Fund revenues than what is estimated in the current budget. Projections for property taxes, other taxes, and service fees are offset by a decrease in sales tax projections.
The following table summarizes the changes to projected General Fund revenues versus
the revised budget for FY 2023-24. Details highlighting the reasons for the material variances follow. FY 2023-24 Projected General Fund Revenues
Property Tax - Property taxes are the City’s single largest General Fund revenue and
represent approximately 50% of all General Fund revenues. As reported in the first quarter budget update, property tax revenue was projected to grow to $142.7 million in FY 2023-24,which assumed $4.4 million in growth or 3.1% over the prior year. However, property tax revenue for FY 2023-24 is currently projected to be $143.6 million, which projects $5.2 million in growth or 3.8% over the prior year. Therefore, property tax revenue
is projected to be $0.8 million higher than forecasted, which is due to cash receipts for supplemental property taxes coming in higher than previously forecasted.
A B C = B-A D = C/A
Revenues by Category PY Actual Revised
Budget
Q2 Projected
Actual Variance %
Variance
Property Taxes 138,358,730 142,715,981 143,556,945 840,964 0.6%
Sales Tax 46,552,459 45,257,552 43,684,691 (1,572,861) -3.5%
Transient Occupancy Tax 30,201,648 31,986,150 31,986,150 - 0.0%
Other Taxes 10,079,710 8,937,999 9,922,292 984,293 11.0%
Service Fees & Charges 25,187,124 24,429,291 24,629,291 200,000 0.8%
Parking Revenue 7,420,314 7,900,099 7,900,099 - 0.0%
Licenses and Permits 5,676,619 5,746,027 5,746,027 - 0.0%
Property Income 7,530,393 9,425,682 9,565,682 140,000 1.5%
Fines & Penalties 3,838,752 3,799,784 3,799,784 - 0.0%
Intergovernmental 4,379,680 4,606,840 4,606,840 - 0.0%
Investment Earnings 1,690,399 1,750,000 1,750,000 - 0.0%
Misc Revenues 3,394,938 437,412 437,412 - 0.0%
Operating Transfers In 18,428,263 21,251,267 21,251,267 - 0.0%
Total Revenues 302,739,030 308,244,084 308,836,480 592,396 0.2%
38
Second Quarter Budget Update February 15, 2024 Page 3
Sales Tax - The second largest funding source for the General Fund is sales tax revenue, making up more than 15% of General Fund revenues. The City’s sales tax base is largely
generated from four industry groups — autos and transportation; general consumer
goods; restaurants/hotels and the State & County Pools. As reported in the first quarter budget update, sales tax revenue was projected at $45.3 million in FY 2023-24, which assumed a $1.3 million or 2.8% decline over the prior year due to a shift in consumer spending from taxable goods, such as new car sales, to nontaxable items, such as travel,
leisure, and entertainment. For example, sales from autos and transportation (the city’s
largest source of sales tax revenue) were projected to be down $0.8 million or 5.5% due to a decrease in demand for new vehicles, which is largely related to higher interest rates. However, sales from autos and transportation are currently projected to be down approximately 14% (compared to the previously projected decline of 5.5%), which is due,
in part, to the temporary closure of a luxury automobile dealership while it is currently
undergoing a construction renovation project. Overall, sales tax revenue for FY 2023-24 is currently projected to be $43.7 million, which projects a $2.9 million or 6.2% decline over the prior year. As previously stated, the decline in sales tax revenue is partly due to a decrease in the forecast for sales from autos and transportation. In addition, sales from
the State & County Pools are projected to be approximately $0.6 million lower, which is
largely due a decrease in the city’s point of sales relative to point of sales for other agencies in the State & County Pools. Therefore, sales tax revenue is projected to be $1.6 million lower than previously forecasted.
Transient Occupancy Tax – The third largest funding source for the General Fund is
TOT, making up more than 10% of General Fund revenues. Approximately three-fourths of TOT revenue is derived from hotels, with the balance coming from short-term lodging. While TOT receipts from short-term lodging more than doubled over the four-year period from Fiscal Year 2018-19 through Fiscal Year 2022-23, short-term lodging revenue is
projected to be 1% higher over the prior year, whereas 5% growth was reflected in the
original forecast for both short-term lodging and hotels. However, TOT revenue from hotels is projected to be 7.8% higher, and is due in part to the Pendry, which opened in late September 2023. Therefore, the overall projection for the second quarter is in line with the budgeted revenues.
All Other Revenue – This category includes all other revenue sources other than the top three (property tax, sales tax and TOT). All other revenue is made up of other taxes, service fees and charges, parking revenue, licenses and permits, property income, fines and penalties, intergovernmental revenues, investment earnings, and miscellaneous
revenues. Material changes in projected amounts were made to other taxes and service
fees and charges:
• Other Taxes consists of real property transfer taxes, business license taxes, marine charter taxes and franchise fees. This category is anticipated to have
increased revenues of $984,000 from business licenses and franchise fees based
on prior year actuals and year-to-date cash receipts.
39
Second Quarter Budget Update February 15, 2024 Page 4
• Service Fees and Charges consists of plan check fees, recreation classes, emergency medical services fees and numerous other cost-of-service fees. It is
anticipated that fees will bring in an additional $600,000 in revenue above the
adopted budget, largely from fees that were increased in the latest fee study approved by Council after the budget was adopted. This increased projection is offset by a projected decrease in Plan Check Fees of $400,000.
General Fund Expenditures
The FY 2023-24 General Fund expenditure budget totals $309.5 million. Spending trends in FY 2023-24 are generally consistent with prior years and do not indicate any cause for concern. Total expenditure savings of $4.7 million are projected at this time due to year-to-date savings from vacancies.
The following table summarizes the changes to the adopted expenditure budget for FY 2023-24, as well as expenditure savings by budget category. Details highlighting the reasons for the material variances follow.
FY 2023-24 Projected General Fund Expenditures
Significant expenditure budget variances are as follows:
• The revised salary and benefits budget totals $179.2 million, an increase of $5.5
million over the adopted budget. The increase is primarily due to the appropriation
of $5.0 million from the FY 2023-24 structural budget surplus as an additional discretionary payment to CalPERS to further reduce the City’s unfunded pension liability. An analysis of salary and benefit activity for quarter one indicates that $4.7 million in personnel savings have been realized as of December 31, 2023. These
A B C = A-B D = C/A
Expenditures by Category
Revised
Budget
Q2 Projected
Actual
Savings
(Overage) % Variance
Salary & Benefits $179,228,885 $174,483,937 $4,744,947 2.6%
Contract Services 33,774,340 33,774,340 - 0.0%
Grant Operating 1,444,144 1,444,144 - 0.0%
Utilities 4,365,888 4,365,888 - 0.0%
Supplies & Materials 4,750,243 4,750,243 - 0.0%
Maintenance & Repair 15,239,986 15,239,986 - 0.0%
Travel & Training 868,771 868,771 - 0.0%
General Expenses 3,949,158 3,949,158 - 0.0%
Internal Svc Charge 29,422,570 29,422,570 - 0.0%
Capital Expenditures 1,975,489 1,975,489 - 0.0%
Operating Transfers Out 34,489,271 $34,489,271 - 0.0%
Total Expenditures $309,508,745 $304,763,798 $4,744,947 1.5%
40
Second Quarter Budget Update February 15, 2024 Page 5
savings are due to vacancies as well as lower than budgeted costs for employee benefits.
General Fund Sources, Uses, and Projected Surplus The City continues to be in excellent financial health. Conservative budgeting and sound
financial policies have resulted in a trend of General Fund operating surpluses and strong
reserve levels for several years. The City is well positioned to continue delivering high levels of services to the community while targeting surplus resources to key priorities each year. It is currently projected that unrestricted General Fund resources will total $7.7 million at the end of FY 2023-24. As is the case each year, staff anticipate that additional
budget savings will be realized, and the final year-end budget surplus will exceed this
amount. The table below illustrates the prior year sources and uses of funds, current year activity and the projected year-end results.
FY 2023-24 Projected General Fund Sources, Uses, and Budget Surplus
A B C=B-A D=C/A
Category Revised Budget Q2 Projection Variance % Variance
Beginning Fund Balance Reserves 15,254,999$ 15,254,999$ -$ 0.0%
Operating Resources:
Operating Revenues 286,992,817 287,585,213 592,396 0.2%
Prior Year Resources Carried Forward 5,465,426 5,465,426 - 0.0%
Transfers In from Other Funds 21,251,267 21,251,267 - 0.0%
Repayment of Advances 1,250,000 1,250,000 - 0.0%
Total Operating Resources 314,959,510 315,551,906 592,396 0.2%
Operating Uses:
Operating Expenditures 275,019,474 270,274,527 (4,744,947)-1.7%
Transfers Out 34,489,271 34,489,271 - 0.0%
Total Operating Uses 309,508,745 304,763,798 (4,744,947)-1.5%
Net Operating Surplus 5,450,764 10,788,108 5,337,344 97.9%
Non-Operating Resources & Uses
Transfers Out (18,293,751)(18,293,751)- 0%
Transfer in ARPA Funds 5,226,643 5,226,643 -
Transfer out to FFP (5,226,643)(5,226,643) -Total Non-Operating Resources & Uses (18,293,751)(18,293,751)- 0.0%
Net Change in Fund Balance (12,842,987)(7,505,643)5,337,344 -41.6%
Ending Fund Balance Reserves 2,412,012$ 7,749,356$ 5,337,344$ 221.3%
41
Second Quarter Budget Update February 15, 2024 Page 6
American Rescue Plan Act (ARPA) Funds The American Rescue Plan Act of 2021 (ARPA) was established in March 2021, which included $350 billion in aid for state and local governments. $10.1 million was allocated
to the City of Newport Beach, which must be obligated by December 31, 2024, and must
be expended by December 31, 2026. An eligible use of ARPA includes, but is not limited to, providing government services to the extent of revenue loss due to the pandemic. The city had $18 million in lost revenue related to the pandemic. Therefore, the city may expend the full amount awarded to the city for the provision of government services, which
can include but is not limited to maintenance of infrastructure, health services, and public
safety services.
The current spending plan includes $5.2 million that is allocated to the Junior Lifeguards
Building Project (19F13) and the related parking lot improvements and $4.9 million that is allocated to the City Yard Fueling Station Project (20F14). The City Yard Fueling Station Project is not expected to be far enough along to allow ARPA funds to be obligated by December 31, 2024. In addition, a portion of the funds allocated to the Junior Lifeguards Building may not be fully expended. Therefore, the city needs to reallocate approximately
$5.2 million to another eligible use. It is recommended that the $5.2 million of ARPA be allocated to reimbursing the city for public safety services incurred during the year on fire operations. Staff will execute a budget amendment to transfer a projected total of $5.2 million to the General Fund when the final amount of unspent funds is known from the Junior Lifeguard Building.
General Fund operating savings that results from the reimbursement of ARPA funds will be transferred to the Facilities Financing Plan Fund (Fund 513) to be used for future
capital projects. Approximately $127,000 of these funds will be needed to fund the
remaining contingency for the Junior Lifeguard Building Project. A budget amendment will be prepared to effectuate the proposed changes to the ARPA spending plan. Other Funds Staff have evaluated the fiscal condition of the City’s other major operating funds (Tidelands and Water). An analysis of the budget performance for these funds indicates that no budget adjustments are necessary and variances between budgeted and actual amounts are within reason.
Conclusion Staff recommends that the Finance Committee review and discuss this report and provide any recommendations for city manager and City Council consideration.
Prepared and Submitted by:
/s/ Shelby Burguan ____________________________
Shelby Burguan Budget Manager
42
ITEM NO. 6B1 SECOND QUARTER BUDGET
UPDATE
ATTACHMENT A
PRESENTATION – ADDITIONAL MATERIALS RECEIVED
43
FISCAL YEAR 2024-25SECOND QUARTER FINANCIAL REPORT
February 15, 2024
Finance Committee
44
PROJECTED GENERAL FUND REVENUES
2
Current Budget $ 308.2 million
Second Quarter Projection $ 308.8 million
•$592,400 of projected positive variance
•Revised estimates for Property Tax, Sales Tax, other taxes, service fees, and lease revenue.
$0
$50
$100
$150
$200
$250
$300
$350
Budget Q2 Projected
Mi
l
l
i
o
n
s
Property Tax Sales Tax
TOT Other
Operating Transfers In
45
110.7
115.6
123.2
128.5
138.4
143.6
$100
$105
$110
$115
$120
$125
$130
$135
$140
$145
$150
2018-19Actual 2019-20Actual 2020-21Actual 2021-22Actual 2022-23Actual 2023-24Projected
Mi
l
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i
o
n
s
PROPERTY TAX REVENUE
3
•Property tax revenue is the City’s largest source of revenue and
is projected to increase by $5.2 million (3.8%) over last fiscal
year, which is $0.8 million higher than the budget projection.
+4.5%
+6.6%
+4.3%
+7.7%
+3.8%
46
38.5
36.2
39.0
46.2 46.6
43.7
$30
$32
$34
$36
$38
$40
$42
$44
$46
$48
2018-19Actual 2019-20Actual 2020-21Actual 2021-22Actual 2022-23Actual 2023-24Projected
Mi
l
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i
o
n
s
SALES TAX REVENUE
4
•Sales tax revenue is the City’s second largest source of revenue
and is projected to fall below the budget by $1.6 million (3.5%),
which is a 6.2% reduction from the prior year actual.
-5.9%+7.5%
+18.5%
+0.8%
-6.2%
47
$14.1
$9.5
$8.6
$7.5
$12.1
$10.1
$8.4
$6.7
$0
$2
$4
$6
$8
$10
$12
$14
Mi
l
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n
s
Autos &
Transportation
Restaurants
& Hotels
General Consumer
Goods
State & County
Pools
SALES TAX REVENUEMAJOR INDUSTRY GROUPS
5
22/23 23/24 22/23 23/24 22/23 23/24 22/23 23/24
FY 2022/23 & FY 2023/24
48
SALES TAX REVENUE
6 49
24.7
20.8
16.9
26.7
30.2 32.0
$10
$15
$20
$25
$30
$35
2018-19Actual 2019-20Actual 2020-21Actual 2021-22Actual 2022-23Actual 2023-24Projected
Mi
l
l
i
o
n
s
TRANSIENT OCCUPANCY TAX
7
•Transient occupancy tax (TOT) revenue is the City’s third largest
source of revenue and is projected to increase by $1.8 million
(5.9%) over prior year actuals due to projected growth in TOT
receipts from hotels. Current projections for TOT as a whole are
in line with the budget.
+13.2%
-15.6%
-19.0%
+58.0%
+5.9%
50
OTHER GENERAL FUND REVENUES
8
•Other general fund revenues projected to exceed budget by $1.3 million
•$1 million in other taxes from business licenses and franchise fees
•$200,000 additional in service fees offset by a decrease in plan check fees
•$140,000 in additional estimated parking revenue
51
GENERAL FUND EXPENDITURES
9
Budget $309.5 million
Projected Actual $304.8 million
Projected Savings $4.7 million
•Savings are in salaries and benefits due to vacancies and lower than budgeted costs for employee benefits
•There are no proposed budget amendments
52
GENERAL FUND SOURCES & USES
10
•Current projection
of $7.7 million
surplus, likely to
grow in future
quarters
•Budget savings will
likely be identified
as the year
progresses, as is
usually the case
A B C=B-A D=C/A
Category Revised Budget Q2 Projection Variance % Variance
Beginning Fund Balance Reserves 15,254,999$ 15,254,999$ -$ 0.0%
Operating Resources:
Operating Revenues 286,992,817 287,585,213 592,396 0.2%
Prior Year Resources Carried Forward 5,465,426 5,465,426 - 0.0%
Transfers In from Other Funds 21,251,267 21,251,267 - 0.0%
Repayment of Advances 1,250,000 1,250,000 - 0.0%
Total Operating Resources 314,959,510 315,551,906 592,396 0.2%
Operating Uses:
Operating Expenditures 275,019,474 270,274,527 (4,744,947)-1.7%
Transfers Out 34,489,271 34,489,271 - 0.0%
Total Operating Uses 309,508,745 304,763,798 (4,744,947)-1.5%
Net Operating Surplus 5,450,764 10,788,108 5,337,344 97.9%
Non-Operating Resources & Uses
Transfers Out (18,293,751)(18,293,751)- 0%
Transfer in ARPA Funds 5,226,643 5,226,643 -
Transfer out to FFP (5,226,643)(5,226,643) -
Total Non-Operating Resources & Uses (18,293,751)(18,293,751)- 0.0%
Net Change in Fund Balance (12,842,987)(7,505,643)5,337,344 -41.6%
Ending Fund Balance Reserves 2,412,012$ 7,749,356$ 5,337,344$ 221.3%
53
RECOMMENDED ACTION
11
Staff recommends that the Finance Committee:
•Review and discuss this report
•Provide any recommendations for consideration by the City Manager and the City Council
54
12
Questions?
55
2/6/24
Scheduled Date Agenda Title Report Type Agenda Description
Thursday, March 14, 2024
Investment Policy Update Presentation
Review and discuss proposed changes to the Statement of Investment Policy
(Council Policy F-1) to remove County Investment Funds for Los Angeles
County as an authorized investment.
Overview of Revenue Projections Presentation
Staff will provide the Committee with an overview of the assumptions utilized
to prepare revenue projections for the City's major funds as part of the FY
2024-25 budget preparation process.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
Thursday, April 11, 2024
Fiscal Year 2023-24 Fee Study Update Presentation Review and discuss the proposed fee updates for Fiscal Year 2023-24
Proposed FY 2024-25 Budget Overview Presentation Staff will provide the Committee with an overview of the expenditure budget
for FY 2024-25 that will be presented to the City Council in May.
Budget Amendments for Quarter Ending March 31, 2024 Receive and File Staff will report on the budget amendments from the prior quarter.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
Thursday, May 9, 2024
Third Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected
Fiscal Year 2023-24 budget performance.
Follow-Up Discussion of Proposed FY 2024-25 Budget Discussion
Staff will provide the Committee with a copy of the Fiscal Year 2024-25
proposed budget document. Should the Committee wish to continue April's
discussion of the Fiscal Year 2024-25 budget, this is also an opportunity to
do so.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
Tuesday, May 28, 2024 Joint City Council and Finance Committee Study Session Presentation Staff will present the FY 2024-25 proposed budget to the City Council and
Finance Committee.
Thursday, May 30, 2024 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.
Committee Recommendation to Council for the FY 2024-25 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.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
Newport Beach Finance Committee Work Plan
April 2024
June 2024
Committee Recess
March 2024
Committee Recess
July 2024
May 2024
I:\Users\FIN\Administration\Shared\FINANCE COMMITTEE\WORK PLAN\2024\2024 WORK PLAN 1
56
2/6/24
Scheduled Date Agenda Title Report Type Agenda Description
Newport Beach Finance Committee Work Plan
Thursday, September 12, 2024
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, 2024.
Annual Review of Investment Policy Presentation
Staff will provide a presentation regarding any proposed changes to the City's
Investment Policy prior to the Investment Policy being approved by the City
Council.
Internal Audit Program Update Presentation Presentation of internal audit reports, findings, and recommendations from
the FY 2023-24 audit program.
Budget Amendments for Quarter Ending June 30, 2024 Receive and File Staff will report on the budget amendments from the prior quarter.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
Thursday, October 10, 2024
Overview of Public Works Department Budget Presentation Staff will provide the Committee with a presentation covering the budget for
the Public Works Department.
Budget Amendments for Quarter Ending September 30, 2024 Receive and File Staff will report on the budget amendments from the prior quarter.
Year-End Budget Results and Surplus Allocation Presentation Staff will provide a presentation regarding the year-end budget results for FY
2023-24 and recommendations for allocation of any year-end budget surplus.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
Thursday, November 14, 2024
First Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected FY
2024-25 budget performance.
OPEB Actuarial Valuation Report Update Presentation Staff will provide the Committee with an overview of the Fiscal Year 2023-24
actuarial valuation report prepared by the City's actuary.
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.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
August 2024
Committee Recess
September 2024
October 2024
November 2024
December 2024
Committee Recess
I:\Users\FIN\Administration\Shared\FINANCE COMMITTEE\WORK PLAN\2024\2024 WORK PLAN 2
57