HomeMy WebLinkAboutFinance Committee Agenda Packet - March 14, 2024CITY OF NEWPORT BEACH
FINANCE COMMITTEE AGENDA
Central Library - Friends Room
1000 Avocado Avenue, Newport Beach, CA 92660
Thursday, March 14, 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
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March 14, 2024
Page 2
Finance Committee Meeting
PUBLIC COMMENTSIV.
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
MINUTES OF FEBRUARY 15, 2024A.
Recommended Action:
Approve and file.
MINUTES
VI.CURRENT BUSINESS
OVERVIEW OF REVENUE PROJECTIONSA.
Summary:
Staff will present to the Committee an overview of the assumptions utilized to
prepare revenue projections for the City's major funds as part of the FY 2024-25
budget preparation process.
Recommended Action:
Receive and file.
STAFF PRESENTATION
2
March 14, 2024
Page 3
Finance Committee Meeting
FISCAL YEAR 2023-2024 FEE STUDY UPDATEB.
Summary:
Review and discuss the Fiscal Year 2023-2024 Fee Study, which included a review
of the following departments: Finance; Harbor; Public Works; and Utilities. The
current year fee study also included other updates to certain fees outside of the
departments that were studied, which will be discussed with the Finance Committee.
Recommended Action:
Review and discuss the proposed fee updates discussed in the report and provide
any recommendations for consideration by the City Manager and City Council.
STAFF REPORT
ATTACHMENT A
ATTACHMENT B
ATTACHMENT C
STAFF PRESENTATION
INVESTMENT POLICY UPDATEC.
Summary:
Review and discuss proposed changes to the StatemeReview and discuss the
report and recommend that the City Council formally approve the proposed changes
to Council Policy F-1 by adopting a resolution.
Recommended Action:
Review and discuss the report and recommend that the City Council formally
approve the proposed changes to Council Policy F-1 by adopting a resolution.
STAFF REPORT
ATTACHMENT A
WORK PLAN REVIEWD.
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
3
ITEM NO. 4A1 PUBLIC COMMENTS
ATTACHMENT A
PUBLIC COMMENTS – ADDITIONAL MATERIALS RECEIVED
4
March 14,2024,Finance Committee Agenda Comments
These comments on Newport Beach Finance Committee agenda items are submitted by:
Jim Mosher (jimmosher@yahoo.com ),2210 Private Road,Newport Beach 92660 (949-548-6229).
Item No.V.A.MINUTES OF FEBRUARY 15,2024
Page 1 of 4 (agenda packet page 4),Item 4,paragraph 1:“Chair O’Neill Mayor Pro Tem
Stapleton.opened public comments on agenda and non-agenda items.”[?The draft minutes
indicate the meeting started at 3:02 p.m.,and Mayor O’Neill did not arrive until 3:04 p.m.I could
be wrong,but I seem to recall it was Mayor Pro Tem Stapleton who opened the public
comments.I do not recall who closed them.]
Page 4 of 4 (agenda packet page 7),full paragraph 5:“Jim Mosher commented stating that
many mooring permittees feel they have a permanent right to mooring use,and that rents are
similar and should be treated as perhaps include property taxes.He inquired how the City
would describe the rents,and what would be the projected return to the City on lost revenue,if
the mooring permits were considered property.”[The reference was to the “possessory interest
tax”which the county tax collector is supposed to collect on property valued at more than
$10,000 (?)over which a person has extended,exclusive use.Mooring spaces in Newport
Harbor “sell”for $30,000 and up (see Mooring Transfers).]
Item No.VI.A..OVERVIEW OF REVENUE PROJECTIONS
I am unable to guess what is being plotted in Slide 9 (agenda packet page 17).
Item No.VI.B.FISCAL YEAR 2023-2024 FEE STUDY UPDATE
Regarding Attachment B (Newport Beach Municipal Code Section 3.36.030 Changes)many of
the listings regarding appeal fee cost recovery,including the proposed changes on Page 4/9
(agenda packet page 70)through Page 6/9 (agenda packet page 72)are unnecessary,and are
in sections that could be deleted since,as proposed,they follow the “All Departments”rule
given on Page 2/9 (agenda packet page 68),and do not need to be separately specified.
In that regard,it is unclear why the “Community Development Department”Chapter 17.65
Appeal recovery amounts,immediately under that,are being kept as a special case not
following the “All Departments”rule,or why it is being retained as fixed dollar amounts that
would need to be amended each time there is a new fee study (and not as percentages).
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Finance Committee Regular Meeting Minutes February 15, 2024
Page 1 of 4
CITY OF NEWPORT BEACH FINANCE COMMITTEE FEBRUARY 15, 2024 REGULAR MEETING MINUTES I. CALL MEETING TO ORDER The meeting was called to order at 3:02 p.m. by Mayor Pro Tem Stapleton. II. ROLL CALL PRESENT: Will O’Neill, Mayor/Chair (arrived at 3:04 p.m.)
Joe Stapleton, Mayor Pro Tem Noah Blom, Council Member (arrived at 3:03 p.m) Allen Cashion, Committee Member William Collopy, Committee Member
Keith Curry, Committee Member Nancy Scarbrough, Committee Member
ABSENT: None STAFF PRESENT: Grace K. Leung, City Manager
Jason Al-Imam, Finance Director/Treasurer Michael Gomez, Deputy Finance Director
Shelby Burguan, Budget Manager Anthony Alannouf, Budget Analyst
Abigail Marin, Budget Analyst Jennifer Anderson, Purchasing & Contracts Administrator
Brittany Cleberg, Assistant Management Analyst Dave Webb, Public Works Director
James Houlihan, Deputy Public Works Director/City Engineer Theresa Schweitzer, Public Works Finance/Administrative Manager
Raymund Reyes, Fire Administrative Manager
MEMBERS OF THE PUBLIC: Jim Mosher
Charles Klobe III. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Pro Tem Stapleton. IV. PUBLIC COMMENTS
Chair O’Neill opened public comments on agenda and non-agenda items.
Jim Mosher commented by requesting the addition of review of City mooring permit rates to the Finance Committee’s work plan, as it is a City financial issue, and the Harbor Commission could benefit from the Finance Committee’s financial counsel. He identified rental costs and cost recovery from program administration as items that should be reviewed by individuals with expertise in
financial matters.
Seeing no others, Chair O’Neill closed public comments. V. CONSENT CALENDAR
A. MINUTES OF JANUARY 11, 2024
6
Finance Committee Regular Meeting Minutes February 15, 2024
Page 2 of 4
Recommended Action: Approve and file. MOTION: Committee Member Curry moved to approve the minutes of January 11, 2024, seconded by Committee Member Scarbrough. The motion carried as follows:
AYES: Blom, Cashion, Curry, Scarbrough, Stapleton, O’Neill NOES: None ABSENT: None ABSTAIN: Collopy VI. CURRENT BUSINESS A. FACILITIES FINANCIAL PLAN (FFP) AND HARBOR & BEACHES MASTER PLAN (HBMP) 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.
Budget Manager Shelby Burguan and Public Works Director Dave Webb presented a summary status of the Facilities Financial Plan (FFP) and Harbor & Beaches Master Plan (HBMP).
Details on planned projects and funding levels for the FFP and HBMP, the impacts of inflation, as well as staff’s recommendations for funding levels. Both documents 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. Committee Member Collopy inquired regarding the escalating net cost related to the
construction of the Police Station, to which staff confirmed that net costs for construction are
increasing across all facilities projects. Committee Member Collopy expressed support for
rigorous debate on the projected $100 million cost for a new Police facility. Discussion ensued
on the unique features, such as a jail and communications components, of the subject facility.
Committee Member Scarbrough and staff discussion ensued concerning private contributions
to various planned projects, which is subject to City Council policy. In the past, joint users have
made contributions to certain projects. There was a question about the private contributions
reflected on the FFP for Fire Station No. 7 (Ref. No. 22). City staff indicated that they would
look into this.
Committee and staff discussion ensued concerning the unfunded projects and unknowns and
uncertainties concerning planning beyond five-years ahead. Chair O’Neill inquired if the Lower
Castaways project could be added to the FFP moving forward. Budget Manager Burguan
responded it could be added to the unfunded section at this point. Committee and staff
discussion ensued concerning potential projects in the unfunded section of the documentation
related to needs at the Corporate Yard.
Committee Member Curry inquired concerning current plans for the building where the new
Police Facility will be constructed. City Manager Grace Leung responded the building is being
leased and revenue is being received. Committee Member Scarbrough inquired whether there
is a conflict of interest, as the property management company leasing the City’s building also
has other buildings in the area that they own. Councilmember Blom responded that the
referenced company was not doing the management for the building itself. The building was
already fully leased. The City took over from them a number of long term contracts and
leasehold agreements in that building. As far as staff knows, the City is receiving market rate
for rental.
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Finance Committee Regular Meeting Minutes February 15, 2024
Page 3 of 4
Committee Member Collopy expressed concern regarding the escalating costs for the Police
Facility and recognizes funding is a City Council decision. However, he would prefer
accelerated funding for the project as he believes construction costs will continue to increase.
Chair O’Neill stated that there will likely not be a surplus this fiscal year and this is a matter that future City Councils will need to pay attention to. He expressed support to have the City
monetize the current property where the Police Station sits now to offset future costs. Committee and staff discussion ensued on the Harbor & Beaches Master Plan, including the costs related to specific projects, including Balboa Island Seawall Replacement, Newport Pier
Replacement, and Balboa Pier Replacement, with a recommendation to increase General Fund contributions to build up reserves for the subject projects. Discussion ensued concerning
potential funding for the various projects, including financing versus cash payments, with a preference to fund future projects on a cash basis. In conclusion, it was staff’s recommendation to increase the General Fund contribution to the
FFP and HBMP by $2 million each in the upcoming fiscal year (total of $4 million). Chair O’Neill stated that it should also be noted that the current labor contracts will be expiring in the next year and negotiations will be commencing soon, which may have impacts on the budget. The planned and projected projects are also experiencing increases in costs. There appeared to be general Committee concurrence to support staff’s recommendation, as listed
in the presentation materials. Chair O’Neill opened public comments. Jim Mosher commented noting the purpose of the FFP had appeared to change in concept from general planning to a firm commitment to specific projects, inquiring as to the amount of revenue the City is projecting from the Uptown Newport project development agreement, whether the developer would be obligated to pay development fees after 2028, and suggesting the Finance Committee become more involved in the Harbor Commissions review of mooring permit rental rates, to provide financial counsel. Seeing no others, Chair O’Neill closed public comments. Chair O’Neill confirmed there appeared to be general Committee consensus to support staff’s recommendation on the funding of the FFP and HBMP in the upcoming fiscal year. There was no further action taken on this item. B. SECOND QUARTER BUDGET UPDATE
Recommended Action: Review and discuss this report and provide any recommendations for
consideration by the City Manager and City Council.
Budget Manager Shelby Burguan presented an overview of the budgetary trends for the second quarter of Fiscal Year 2023-24 that generally reflected positive trends for projected General Fund revenues, including property tax and other General Fund revenues, which is partially offset by a projected decrease in Sales Tax revenue. A current projected savings in
General Fund expenditures is forecasted, which is attributable to savings in salaries and benefits due to vacancies and lower than budgeted costs for employee benefits. There were no proposed budget amendments at this juncture.
General discussion ensued including comments related to the decrease in property transfer tax fees as home sales have declined over the past few years, approximately $18 million in lost
revenue during the pandemic, and the City’s need to reallocate $5.2 million in ARPA funds to
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Finance Committee Regular Meeting Minutes February 15, 2024
Page 4 of 4
another eligible use with a recommendation to allocate the funding to reimburse the City for public safety operating costs incurred on Fire operations. The General Fund operating savings that would result from this reimbursement would be then transferred to the FFP to be used for future capital projects. Chair O’Neill stated it appeared the City was on track to reach the budget numbers it has
originally projected for the current fiscal year. In response to an inquiry concerning “claw back” of FEMA funds, staff noted that from an accounting perspective, there should not be an impact to the City. In response to an inquiry from Committee Member Scarbrough, City Manager Leung reported
that the City is currently at its lowest vacancy rate, under 5%. In response to the inquiry concerning the reduction in plan check fees, it was noted that a certain amount of the work is performed by plan check contractors with the balance performed by City staff.
Chair O’Neill opened public comments.
Jim Mosher commented stating that many mooring permittees feel they have a permanent right to mooring use, and that rents are similar and should be treated as property taxes. He inquired how the City would describe the rents, and what would the projected return to the City on lost revenue, if the mooring permits were considered property.
Charles Klobe commented citing references in the news media that cities are losing property
tax revenue due to commercial building vacancies and reassessed values. The reports are alleging that commercial renters are fleeing due to the lack of amenities.
Seeing no others, Chair O’Neill closed public comments.
There was no further action taken on this item.
C. 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, including upcoming joint meetings with the City
Council for budget review.
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 3:51 p.m.
Attest:
___________________________________ _____________________ Will O’Neill, Chair Date
Finance Committee
9
ITEM NO. 6A1 OVERVIEW OF REVENUE
PROJECTIONS
ATTACHMENT A
STAFF PRESENTATION – ADDITIONAL MATERIALS RECEIVED
10
FY 2024-25 OVERVIEW OF REVENUE PROJECTIONS
Finance Committee Meeting –March 14, 2024
11
HISTORICAL GENERAL FUND REVENUES
2
$7.0 million of projected revenue growth over the
current year projected actuals
Drivers of revenue growth:
•Property Tax + $5.7 million
•Sales Tax + $2.3 million
•Growth over FY24 projected actual (down
$4.8 million from FY24 adopted budget)
•TOT + $0.6 million
$-
$50
$100
$150
$200
$250
$300
$350
FY 2022-23Actuals FY 2023-24Projected FY 2024-25Projected
Mi
l
l
i
o
n
s
Property Tax Sales Tax TOT Transfers Others
$300.8m $308.2m $315.2m
12
PROPERTY TAX REVENUE
3
•The City receives 16.8% of the 1% property tax
•Each City’s percentage of the 1% varies
•Newport Beach has the third highest share of the 1% property tax in Orange
County behind Santa Ana and Laguna Beach
•Assessed value has a significant impact on revenue
•Having a higher percentage of the total tax and higher assessed values than
many surrounding cities is a significant contributor to the City’s fiscal stability
•The City’s assessed valuation is the second largest in Orange County (behind
Irvine and ahead of Anaheim).
•The assessed valuation is projected to be $75.8 billion in FY 2023-24, a 6.51%
growth from FY 2022-23
•The assessed valuation is projected to be $77.4 billion in FY 2024-25, a 4.21%
increase
17.15%
67.21%
7.02%8.61%
City of Newport Beach Schools
County of Orange Special Districts
13
PROPERTY TAX REVENUE BY CATEGORY
AND RESIDENTIAL SALES TRENDS
4
10.60%
84.70%
2.20%
2.50%
Commercial Residential
Other Unsecured
Single Family Residential Sales
14
PROPERTY TAX REVENUE
PROJECTION METHODOLOGY
5
•City staff works in collaboration with the City’s property tax consultant, HdL,
to develop the secured property tax revenue projection
•Accounts for the majority of the City’s property tax revenue
•Includes the State’s recently-released CPI factor for allowable
assessment growth under Proposition 13 (2.0% for FY 2023-24)
•Projects the impact of changes of ownership on assessed values
•Projects the impact of rising property values on remaining Proposition 8
adjustments from prior fiscal years
•HdL also provides a projection of the City’s property tax in lieu of VLF
allocation each year
•Staff calculate appropriate growth factors for other types of property tax
revenue based on historical information and advice from HdL
15
PROPERTY TAX REVENUE
PROJECTION
6
•Represents approximately 50% of General Fund revenues
•Growth has been accelerating based on strong assessed value growth and sales activity
•4.0% growth projected for FY 2024-25 for property tax revenue
$97.0
$104.6
$110.7
$115.6
$123.2
$128.5
$138.4
$143.6
$149.3
$95
$105
$115
$125
$135
$145
$155
2016-17
Actual
2017-18
Actual
2018-19
Actual
2019-20
Actual
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Projected
2024-25
Projected
Mi
l
l
i
o
n
s
+5.8%
+4.5%
+6.6%
+7.7%
+3.8%
+4.0%
+4.3%
+7.9%
16
PROPERTY TAX REVENUE
GROWTH HISTORY
7
1.8%-0.4%-0.1%13.4%-2.1%5.6%11.2%6.0%7.9%5.8%4.5%6.6%4.3%7.7%3.8%4.0%
$ M
$20 M
$40 M
$60 M
$80 M
$100 M
$120 M
$140 M
$160 M
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY 24Projected FY 25Projected
17
SALES TAX REVENUE
8
•The City receives 12.9% of the
7.75% sales tax (1% of sale)
•Historically most of the City’s
sales tax revenue comes from:
•Autos & Transportation
•Restaurants & Hotels
•General Consumer Goods
•County & State Pools
12.9%
50.8%
23.4%6.5%
6.5%
City of Newport Beach
State General Fund
County of Orange
Proposition 172
OCTA
18
-15.00%
-5.00%
5.00%
15.00%
25.00%
35.00%
45.00%
55.00%
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
Newport Beach Orange County
SALES TAX REVENUE
NEWPORT BEACH VS. ORANGE COUNTY
9 19
PROJECTED SALES TAX REVENUE
MAJOR INDUSTRY GROUPS
10
$14.1
$9.5
$8.6
$7.5
$11.7
$10.1
$8.3
$6.8
$12.5
$10.7
$8.4
$7.2
$0
$2
$4
$6
$8
$10
$12
$14
Mi
l
l
i
o
n
s
22/23 23/24 24/25 22/23 23/24 24/25 22/23 23/24 24/25 22/23 23/24 24/25
Autos &
Transportation
Restaurants &
Hotels
General
Consumer Goods State & County
Pools
20
SALES TAX REVENUE
PROJECTION METHODOLOGY
11
•City staff works in collaboration with the City’s sales tax consultant, HdL, to analyze
historical sales tax data and to identify material necessary adjustments
•New and closed retailers
•Misallocated revenues
•HdL develops a statewide revenue forecast by industry category with assistance from
Beacon Economics
•Adjusted for regional or agency trends
•Historically, HdL’s forecasts tend to be conservative
21
SALES TAX REVENUE
PROJECTION
12
•Sales tax revenue is projected to be $2.3 million higher than the current FY 2023-24 year-end projection,
reflecting a 5.3% growth over estimates for the current year.
$33.7 $35.0
$38.5
$36.2
$39.0
$46.2 $46.6
$43.0
$45.3
$30
$34
$38
$42
$46
$50
2016-17Actual 2017-18Actual 2018-19Actual 2019-20Actual 2020-21Actual 2021-22Actual 2022-23Actual 2023-24Projected 2024-25Projected
-5.9%+7.5%
+18.5%
+0.8%
-7.6%+5.3%
9.9%4.0%
22
SALES TAX REVENUE
GROWTH HISTORY
13
-14.9%
-13.6%12.6%7.6%4.6%10.8%6.5%
12.0%
-8.4%4.0%
9.9%-5.9%7.5%
18.5%0.8%
-7.6%5.3%
$ M
$5 M
$10 M
$15 M
$20 M
$25 M
$30 M
$35 M
$40 M
$45 M
$50 M
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY 23 FY 24
Projected
FY 25
Projected
23
TRANSIENT OCCUPANCY TAX
REVENUE
14
•The City charges a 10% tax
•Same rate as 41% of California jurisdictions
•Lower than 32% of California jurisdictions
•Higher than 27% of California jurisdictions
•Revenue is generated from commercial (hotel)
and residential (short-term rental) stays
•The City has access to a variety of data sources
to monitor trends that impact leisure and
business travel
24
TRANSIENT OCCUPANCY TAX REVENUE
PROJECTION METHODOLOGY
15
•Staff has spent a significant amount of time refining the projection methodology through
collaboration with industry experts and more careful evaluation of the data at the category, and, in
the case of hotel TOT, the individual property level
•Evaluating residential TOT and hotel TOT trends and developing appropriate projections
•Analyzing actual cash receipts for trends month over month, and compared to the comparable
period a year ago
•Monitoring hotel closures, sales, and remodeling for impacts on revenues
•Seeking input from Visit Newport beach and evaluating data from VNB and Visit California
•Collectively validating assumptions amongst the Finance Department leadership team
25
TRANSIENT OCCUPANCY TAX REVENUE
COMMERCIAL & RESIDENTIAL
16
$21.0
$16.6
$11.8
$20.0
$21.9
$23.6 $24.1
$3.7 $4.2 $5.1
$6.7
$8.3 $8.4 $8.5
$0
$5
$10
$15
$20
$25
Mi
l
l
i
o
n
s
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
26
TRANSIENT OCCUPANCY TAX REVENUE
PROJECTION
17
•Current year overall projection is in line with the budgeted revenues
•Short-term lodging revenues are projected to grow 2% in FY 2024-25
•Growth in residential TOT revenue has slowed, while hotel TOT revenue outperforms prior years primarily due
to the recent opening of the Pendry in September 2023
$22.3 $22.8 $24.7
$20.8
$16.9
$26.7
$30.2 $32.0 $32.6
$14
$18
$22
$26
$30
$34
2016-17
Actual
2017-18
Actual
2018-19
Actual
2019-20
Actual
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Projected
2024-25
Projected
Mi
l
l
i
o
n
s
+5.9%
+2.0%
+13.2%
+58.0%
-19.0%
-15.6%+8.2%+2.4%
27
TRANSIENT OCCUPANCY TAX REVENUE
GROWTH HISTORY
18
0.7%15.7%13.2%12.0%10.2%12.0%3.5%5.8%2.4%8.2%
-15.6%
-19.0%
58.0%
13.2%
5.9%2.0%
$ M
$5 M
$10 M
$15 M
$20 M
$25 M
$30 M
$35 M
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Projected
FY25
Projected
28
OTHER REVENUES
19
•Property tax, sales tax, and transiency occupancy tax revenues make up approximately 75% of the City’s
General Fund revenues
•Other revenues include the following material additional categories of revenue:
•Service Fees and Charges / Licenses and Permits (10% of General Fund revenues)
•Property income (6% of General Fund revenues)
•Other Taxes (3% of General Fund revenues)
•The remainder of other revenues (3% of General Fund revenues) includes:
•Intergovernmental revenues (primarily Proposition 172 revenue)
•Fines and penalties (primarily parking fines)
•Investment income and other minor revenues
29
SERVICE FEES AND PERMITS REVENUE
PROJECTION
20
$25.5 $25.4 $25.7
$23.5
$28.9
$30.9 $30.4 $31.2
$20
$24
$28
$32
2017-18Actual 2018-19Actual 2019-20Actual 2020-21Actual 2021-22Actual 2022-23Actual 2023-24Projected 2024-25Projected
Mi
l
l
i
o
n
s
+2.84%+6.70%-1.58%
+23.26%
-8.57%+1.16%-0.54%
•This category of other revenue primarily includes:
•Building and planning fees
•Recreation class and Junior Lifeguard program fees
•The revenue projection is developed by Finance staff in collaboration with the subject matter experts in the City
Departments responsible for each of these programs
•Growth due to latest fee study approved by Council after the budget was adopted
•The projected increase is offset by a projected decrease in Plan Check Fees of $400,000
•Paramedic service fees
•Recycling fees
30
PROPERTY INCOME REVENUE
PROJECTION
21
•This category of other revenue primarily includes:
•Leased property income – generated from non-Tidelands property leases
•Parking income – generated from non-Tidelands parking lots and meters
•The revenue projection is developed by Finance staff in collaboration with the subject matter experts in the City
Departments responsible for each of these programs
•Growth due to higher percentage-based rents and parking revenues.
$9.9 $9.9 $10.4
$12.2
$14.0 $15.0
$17.5 $17.9
$8
$10
$12
$14
$16
$18
2017-18
Actual
2018-19
Actual
2019-20
Actual
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Projected
2024-25
Projected
Mi
l
l
i
o
n
s
+2.33%
+16.82%
+6.57%
+15.29%
+5.54%
+17.05%
-0.65%
31
TIDELANDS FUND REVENUES
22
•The Tidelands Fund is a special revenue fund used to
account for revenues related to the Tidelands areas
under the City’s jurisdiction
•Funds are deposited into either the operating or
capital fund from all revenue-generating activities
within the Tidelands
•The operating fund has had an annual deficit
ranging from $7 million to $11 million in recent
fiscal years that is supported by the General
Fund
•The General Fund will transfer $4.8 million to the
capital fund in FY 2023-24 to support capital
needs. An additional $2 million will be
recommended with the FY 25 Proposed Budget.
32
TIDELANDS FUND REVENUE
PROJECTION
23
•95% of revenues are generated from property income
•Leased property income – generated from Tidelands property leases, slips, and moorings
•Parking income – generated from Tidelands parking lots and meters
•Oil well income – generated from the City’s oil field in West Newport
•5% of revenues are generated by investment income (primarily from capital reserves)
$14.7
$16.8 $16.6 $16.6 $18.2
$20.7
$21.4
$12
$14
$16
$18
$20
$22
$24
2017-18Actual 2018-19Actual 2019-20Actual 2020-21Actual 2021-22Actual 2022-23Projected 2023-24Projected
Mi
l
l
i
o
n
s
+13.84%-0.86%-0.13%+9.54%
+13.68%
+3.66%
33
WATER UTILITY REVENUE
PROJECTION
24
•New rates effective January 1, 2024 with the final scheduled adjustment occurring January 1, 2028
•Majority of revenues are derived from water and recycle water meter (fixed) and usage (variable) charges
•Other operating revenues represent 1.5% of the Water Utility’s total revenue
•The Water Utility consistently looks for other sources of revenue, such as grants, to fund infrastructure investments
•Rate revenue is expected to grow annually for the next 4 years
$27.0 $27.6 $27.9 $30.8 $31.8 $32.2 $34.1
$37.3
$22
$26
$30
$34
$38
$42
2017-18
Actual
2018-19
Actual
2019-20
Actual
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Projected
2024-25
Projected
Mi
l
l
i
o
n
s
+9.3%
+5.8%+1.4%+3.3%
+10.4%+0.9%+2.2%
34
WASTEWATER UTILITY REVENUE
PROJECTION
25
•New rates effective January 1, 2024 with the final scheduled adjustment occurring January 1, 2028
•Majority of revenues are derived from sewer meter (fixed) and usage (variable) charges
•Other operating revenues represent 1.4% of the Wastewater’s Utility’s total revenue
•The Sewer Utility is constantly looking for alternative sources of revenues, such as grants, to help mitigate the
ratepayer impacts
•Rate revenue is expected to grow annually for the next 4 years
$3.5
$4.1 $4.2 $4.6 $4.8 $4.7 $4.6
$5.6
$3
$4
$5
$6
2017-18
Actual
2018-19
Actual
2019-20
Actual
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Projected
2024-25
Projected
Mi
l
l
i
o
n
s
+20.0%
+0.8%+10.4%+3.8%-1.9%-1.3%
+19.9%
35
QUESTIONS?
Finance Committee Meeting –March 14, 2024
36
Agenda Item No. 6B March 14, 2024
TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE
FROM: Finance Department Jason Al-Imam, Finance Director/City Treasurer 949-644-3123, jalimam@newportbeachca.gov
SUBJECT: FISCAL YEAR 2023-2024 FEE STUDY UPDATE SUMMARY: Fees are regularly studied and updated by departments to ensure the proper recovery
for cost of services in accordance with the cost recovery rates established by the City
Council. Departments are reviewed on a rotating basis such that each department’s fees are comprehensively studied and updated every 3-5 years. This year, staff has comprehensively reviewed the fees for the following departments:
• Finance
• Harbor
• Public Works
• Utilities Specific recommendations related to the fees referenced above are discussed in detail
later in this report. The proposed net fiscal impact of the proposed non-inflationary fee
changes is an increase of $581,000 in revenue to the City as summarized in the table
below.
CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT
37
Fee Study Update March 14, 2024
Page 2
Staff has also identified necessary administrative fee updates in the various departments
that will be reflected in the redlined version of the Schedule of Fees, Fines, and Rents
(SRFF) that will be included in the fee resolution presented to the City Council. Subject
to City Council approval, staff recommends that the fee schedule updates, with the
exceptions noted in this report, become effective July 1, 2024. In addition to the proposed
fee updates, staff is recommending modifications to the Newport Beach Municipal Code
(NBMC) Section 3.36.030 (Cost Recovery Percentages) to facilitate the changes to
authorized levels of cost recovery required by the fee changes that are recommended at
this time.
RECOMMENDED ACTION:
Review and discuss the proposed fee updates discussed in this report and provide any recommendations for consideration by the City Manager and City Council. DISCUSSION: NBMC Section 3.36, and Council Policy F-4 (Revenue Measures) provide staff and the City Council with policy guidance related to setting cost recovery targets and updating user fees. User fees, or cost-of-service fees, are charged to a citizen or group for services performed or provided by a government agency on their behalf. If the service
primarily benefits an individual or group of people, then the burden of that cost should be borne by the person receiving the benefit. NBMC Section 3.36.030 sets the cost recovery for user fees at 100%, apart from the subsidized fees listed in Exhibit “A” of that same section, as well as those limited by California or Federal statutes. A recommendation for less than a 100% cost recovery rate may occur when a service is
beneficial to the community at large along with specific individuals or groups, and/or when there is an economic incentive, or disincentive, to do so. In these cases, another City revenue source – in most cases, the General Fund - subsidizes the service. Any newly proposed fee or fee increase that is not approved by the City Council will by default be subsidized by the General Fund.
38
Fee Study Update March 14, 2024
Page 3 The SRFF primarily includes cost-of-services fees, which are designed to recover the
City’s cost to provide the related service. To establish fees based on full cost recovery, it
is necessary to determine the cost of services. Using well-established cost accounting methodologies, the City’s consultant, ClearSource Financial Consulting (ClearSource), conducts a comprehensive review and update of the Citywide cost allocation plan, and direct user fee calculations for each department on a rotating basis every three years.
This year, ClearSource studied the following departments at staff’s direction:
• Finance
• Harbor
• Public Works
• Utilities
As part of this study, ClearSource met with City staff from each studied department to discuss the services provided, the annual volume for those services, and the staff
resources and time estimates for delivering the related services. To factor in both direct
and indirect costs, ClearSource then calculated the department staff’s fully burdened hourly rate, which includes both internal administrative as well as citywide overhead costs. The fully burdened hourly rates are applied to the time estimates provided by staff and the fee is calculated. Based on the results of the fee study, it is not uncommon for
some fees to increase while others may decrease. The most common reasons for fees
to go up or down are: 1) costs changing over time, most often increasing 2) the staff performing the service changes, and/or 3) the amount of time to perform the service changes. Once the calculations are confirmed, department staff then recommends that the fee should either be fully recovered or subsidized. NBMC Section 3.36.030 Exhibit “A” subsidy changes are detailed in Attachment B.
The remainder of this report focuses on how studied fees are changing. Before and after illustration of each department’s studied fees can be found in Attachment A. Finance Department
The Revenue Division of the Finance Department maximizes and safeguards the City’s revenues by implementing and enforcing Municipal Code revenue programs. These programs include, but are not limited to, tax collection, short term lodging, film permitting and parking. The Revenue Division was last studied in FY 2020-21.
Many of the Finance fees have proposed significant decreases due to the improved system processes including the implementation of revised forms in the revenue division that have allowed for a more streamlined and efficient cycle processing time. Notable decreases include the Business License Initial Application (in person), Sidewalk Vending Permit Application and Sound Amplification permit. Short-term Lodging Permits have
seen an increase in Initial and Renewal proposed fees as staff time involvement with code enforcement regulation from the Community Development Department is factored into the model. Staff are proposing a phased in approach to the Short-term Lodging Permits from current recovery to full cost recovery over a two-year period to mitigate the impact
39
Fee Study Update March 14, 2024
Page 4 of the increase in fee to the customer.
In this department, two new fees are proposed: 1. Business License Initial Application (online) – The Revenue Division in Finance currently provides review of online Business License Initial Applications at no cost.
Initially, a no cost structure was provided to incentivize individuals to utilize the
City’s online portal to streamline the application process, despite staff time involvement. The proposed fee of $6 would allow cost recovery for staff time involved with the review and processing of online applications.
2. Taxicab Operator License Fee – This fee is being proposed as the Orange County
Taxi Administration Program (OCTAP), which regulated taxi operations on behalf of participating Orange County cities through a centralized permitting of cab companies, drivers, and vehicles, dissolved on December 31, 2020. The City of
Newport Beach will be taking over the processes that OCTAP provided and will
perform the regulatory functions within the city. Three fees associated with Taxicab permitting are proposed: a Company Permit fee of $1,660, a Vehicle Permit (per vehicle) fee of $1,399, and a Driver Permit fee of $1,660. Updates to NBMC Section 5.17 are currently in progress and will be presented to City Council for
review.
The proposed Finance fees will have an overall fiscal impact of $171,000 in increased estimated revenues, with much of the fiscal impact associated with adjustments to short term lodging permit fees, as the city targets a 68% cost recovery.
Harbor Department The Harbor Department is responsible for many harbor-related programs and services within the city, including but not limited to, managing the guest marina, and renting available slip space and moorings. The Harbor Department was last studied in FY 2020-
21. Many of the fees have proposed increases to align with the current cost of providing
these services. Many of these fees are market-based rates that are adjusted annually in-line with regional cost of inflation, typically amounting to $10 or less, to align the fees with the current cost
of providing these services. Fees that have notable variance increases include
Environmental Response, Impound Fees, and the Large Boat Escort/Permit due to transitioning to staff to conduct the response instead of relying on another agency, increase in costs related to staffing, and the recalculation of time and effort in performance service, respectively.
There are several new fees proposed related to the harbor services as follows: 1. Towing Fee for Abandoned/Impounded Boats Over 14’ but less than 25’ – The Harbor Department needs to move impounded boats more often than originally
40
Fee Study Update March 14, 2024
Page 5 anticipated. Staff has the capability and capacity to tow boats in this size
category. The proposed fee of $377 would allow cost recovery from vessel
owners for services provided. 2. Rhine Wharf Permit – The Harbor Department took over the responsibility for writing permits for the use of the commercial Rhine Wharf in 2022. In 2023, there
were 53 Rhine Wharf permits issued. The proposed fee of $28 is for processing
the applications received and is reflective of the resources dedicated to application review and permit issuance. 3. Variance Applications – This proposed fee of $498 is reflective of the process
and effort required to review harbor related variance requests to deviate from
current zoning requirements. The process for variance requests specific to harbor had not previously been defined since the last fee study and mirrored a structure like the Community Development Department's process which is
limited applicable to dock, pier permits and other structures over tidelands,
prompting the need for a distinct individual fee. 4. Use of electrical cord and/or adapter while at Marina Park – Staff have found that they frequently loaned their limited supply of electrical adapters to mariners
arriving at the Marina Park facility without appropriate equipment. The proposed
fee of $10 would allow for cost recovery related to the rental, wear, and tear on such equipment provided by the Harbor Department. 5. Purchase (non-return) of electrical cord or adapter – In the event that an
electrical adapted or cord that was loaned to a mariner while staying at the
Marina Park facility is not returned or is returned in damaged condition, a proposed fee of $75 would be assessed to reimburse the Harbor Department and allow for the equipment to be replaced.
6. Mooring size exchange – Staff is recommending recovering 100% of the cost of
this service as outlined in Attachment B at a fee of $302. Should the City be successful in reconfiguring one or some of the mooring fields according to the Harbor Commission’s recommendations, the opportunity to apply for a mooring size adjustment within the reconfigured field(s) will no longer exist. As defined
in Title 17, along with other aspects of the mooring field optimization project,
mooring permittees in a reconfigured field will have the opportunity to apply for a mooring size exchange. 7. Mooring license application fee – The new mooring license program for City
controlled moorings launched at the beginning of 2024. Applications for these
mooing licenses are accepted through the City’s online system. The $26 proposed fee considers staff time for reviewing and processing of applications. 8. Mooring license waitlist fee (one time or annual) – Staff has noted that there has
41
Fee Study Update March 14, 2024
Page 6 been significantly more demand for mooring licenses – currently 16 – than there
is supply. Those applicants not offered licenses will be placed on a waitlist for
when an existing or new license becomes available. The proposed fee of $34 considers the maintenance of the application records on the waitlist and City resources consumed.
9. Group/exclusive use fee for Marina Park – Staff exerts additional effort when a
group of mariners desire to have sole and exclusive access to the Marina Park marina facility to support coordination of the group member reservations, arrivals, departures, special requests, and organized activity. The proposed fee of $502 suggest a 100% cost-of-service recovery.
10. Mooring Assists – After Hours – By special arrangement, harbor staff remain on duty past normal working hours to support a visitor or resident mariner getting onto or off a mooring. This proposed fee of $200 considers staff time to provide
a service that ensures safety during inclement weather, or for mariners
unfamiliar with the harbor and mooring tackle. 11. Deposit/late cancellation fee for use of Human Lift – Marina Park – Staff has noted that on several occasions within the past year, a mariner with a
reservation to use the Human Lift at Marina Park cancelled or failed to show up
for the use of the lift after utilizing staff time for setup. The proposed fee of $31 considers staff time to setup the lift and is intended to prevent the unnecessary use of resources required for deployment of the lift for unused reservations. There is no cost to the mariner to use the lift and the deposit is returned when
the mariner uses the lift as scheduled or cancels with sufficient advance notice. 12. Deposit/late cancellation fee for use of Human Lift – Balboa Marina PD – The proposed fee of $117 considers setup and use of the human lift at the new public dock at Balboa Marina which requires more resources than deployment at
Marina Park due to the transport required to the location. This fee is also being
proposed to prevent cancellations and no shows related to reservation for use of the lift. There is no cost to the mariner to use the lift and the deposit is returned when the mariner uses the lift as scheduled or cancels with sufficient advance notice.
The overall fiscal impact in the Harbor Department pertaining to the proposed service-related fees for a target 100% cost recovery is an estimated increase of $20,000 in revenues, where most of the fiscal impact increase is derived from the adjustments linked to impounded vessel releases.
Public Works The Public Works Department is responsible for managing a comprehensive capital improvement program, including the promotion of a safe and efficient transportation system. Public Works also manages public property through permitted encroachments,
ensures the safety of utility company activities, private construction and special events in
42
Fee Study Update March 14, 2024
Page 7 the public right-of-way, reviews plans for residential and commercial development as they
relate to the public right of-way, and oversees activities that protect and improve the
harbor and upper bay. The Public Works Department was last studied in FY 2020-21. The proposed changes to Public Works fees cover Engineering & Harbor Resources, Refuse, and Water Quality/Conservation/Environmental Services.
Changes to existing fees for the Public Works department include:
1. An additional Engineering Field Inspection fee will be applied with a Street Closure Permit that requires a field inspection. This is noted in both the Enginering Field Inspection fee and the Street Closure Permit fee as a footnote.
2. Recycling Service Fee – Per Residential Unit, Per Month – This fee would replace the two existing fees as one combined fee at $6.39. This fee is a cost-of-service fee based solely on recovery of operational costs associated with collection of
recyclable materials in accordance with State mandates. 3. Construction and Demolition – This fee would make changes to the presentation of the current Demolition fee, distinguishing between Complete Demolition Deposit and Construction Demolition Deposit for a series of valuation ranges as identified
in the proposed schedule. The construction and demolition deposits are intended
to encourage compliance and are refundable if the applicant uses an approved franchise hauler and arranges for an inspection. Should the applicant fail to meet conditions required on the permit, the deposit would be subject to forfeiture. Having two distinguishing fees will aide in achieving waste diversion compliance with
Assembly Bill (AB) 939 and CalGreen requirements, as well as allowing for
accurate reporting to CalRecycle. The Public Works Department is also proposing changes to NBMC Section 15.02.085 Addition of Section 105.3.1.1 relating to the administrative code to refine language for the
Construction and Demolition permits, as identified in Attachment C.
Most of the fiscal impact in the Public Works Department for service-related fees is associated with adjustments to review of street closure permit requests and administration of diversion requirements associated with construction demolition. An
increase of $66,000 in estimated revenues with the proposed fees is anticipated. Utilities The Utilities Department is responsible for overseeing the management and maintaining of water, wastewater, storm drain and tidal valve systems to provides clean, safe, and
responsive utility and infrastructure maintenance services to the community. The
department was last studied in FY2020-21. The proposed new fees in the department include:
1. Meters, Boxes, Lids, Etc. – The proposed fee consolidates a base fee of $53 plus
43
Fee Study Update March 14, 2024
Page 8 a pass-through of the actual cost of materials for a meter, box, lid, etc. It should be
noted that the pass through of the actual costs of materials is reflected in the
current SRFF with price points identified for each meter, box, or lid; the base fee is the proposed new aspect of the fee which would allow for a proposed cost recovery of 100% associated with staff time involvement.
2. Water and Sewer Services Establishment Fee. Remote Activation – The proposed
Remote Activation sub fee of $52 under the Water and Sewer Establishment Fee requires less staff time than instances where Onsite Activation is required and proposes 100% cost recovery.
The overall fiscal impact in the Utilities Department pertaining to the proposed service-
related fee changes is an estimated decrease of $115,000 in revenues, with approximately $143,000 of the decrease pertaining to the new remote activation fee which is offset in part by estimated revenue increases to other fees.
Other Updates Even when a department is not scheduled for a comprehensive fee study, occasionally, operations will change enough that the non-studied departments will request one or two fee study changes for consideration and adoption. As part of this study and to present a
comprehensive and thorough update on the City’s fees and current operations, staff
considered the following additional updates outside of the departments scheduled to be studied. The Information Technology Department is proposing an hourly rate for A/V technical
support related activities for both business hours and non-business hours at $144 and
$173, respectively, for a 100% proposed cost recovery. This fee is intended to be charged in any instance in which an additional level of IT support is required, for example, support associated with facility rentals.
The Police Department is proposing a revised fee structure for civil subpoenas of actual
cost with $275 per day initial amount. The last time the Police Department was studied was in FY 2022-23 and did not experience an increase in the Civil Subpoena fee at the time. This fee is utilized when any staff member is requested to appear in court for administrative hearings, civil trials, court actions, etc. Actual amounts paid would be
calculated in accordance with California Government Codes 68096.1 and 68097.2.
The Police Department is also proposing a revised fee structure for Towing and Vehicle Release/ Repossession Fees as follows:
• Tow Operator Fee to be eliminated
• Customer Fee increased from $110 to $156
• Vehicle Release Fee increase from $20 to $28 Staff is proposing to eliminate the Tow Operator Fee and have the cost proportioned out to be absorbed by the Customer Fee and the Vehicle Release Fee. This proposal is
44
Fee Study Update March 14, 2024
Page 9 intended to eliminate the franchise fee and set the user fee at 100% cost recovery with
the full cost to be borne by the party being towed. The fee is not intended to be punitive
to any victims of a crime; staff is also proposing that the Police Chief have the authority to waive fees related to towing in circumstances where an individual has been identified as a victim.
A credit card convenience fee of 2.85% has been included in the all-departments section
for online utility bill payments and other payments received by the City in excess of $20,000. The City may also determine to apply a similar fee to other receipts collected by the City via credit card. This fee is intended to update the current Credit Card Fees on Charges in Excess of $20,000. The fiscal impact associated with adding in the 2.85% fee
to utility bill payments is $439,000.
The Community Development Department is proposing minor revisions to descriptions in the Banner Permit fee title to Banner/Sign Permit and to include a footnote in the General
Plan Maintenance Fee - % of Building Permit Fee that the fee will be applied as five
percent (5%) to permit fees for all new construction, additions, and additions with alterations for the residential and commercial projects for clarification purposes. The Parking Meter Mobile Application Processing Fee is the existing fee of Vendor
Transaction Fee for Online Payment Processing that has been renamed for fee schedule
clarity; the fee continues to be a pass-through fee. CPI Updates - The applicable rental fees within each studied department as well as all applicable fees listed in the SRFF that are subject to CPI increases based on prior
resolutions, will be increased by CPI effective July 1, 2024. The applicable cost-of-service
fees within each studied department this fiscal year will be increased by CPI effective July 1, 2025. However, the percentage by which these fees, including the rental fees referenced above, will increase is not yet known as the City’s methodology in calculating the change in CPI is by using March of the prior year to March of the current year. The
proposed increases will be included in the redline version of the SRFF that will be
attached to the fee resolution when the fee study update is considered by the City Council. CONCLUSION:
Subject to City Council approval of the fees as recommended, it is estimated that
approximately $581,000 of additional revenues will be generated for the City. However, this projection does not account for any fees where volume statistics are unavailable. The City Council’s policy of ensuring regular review of the City’s cost-of-service fees and adequate cost recovery will continue to ensure adequate cost recovery from users of the City’s fee-related services. This then facilitates the redirection of general tax revenues
currently subsidizing fee-supported services to maintaining and enhancing non-fee supported services and programs. Staff will present the proposed fee recommendations to the City Council for formal
45
Fee Study Update March 14, 2024
Page 10 consideration in April and will incorporate any feedback received from the Finance
Committee into staff’s final recommendations.
Prepared and Submitted by:
/s/ Abigail Marin
Abigail Marin Budget Analyst
Attachments: A. FY 2023-24 Studied Department Changes – Illustration of Proposed Fee Changes B. Newport Beach Municipal Code Section 3.36.030 Changes
C. Newport Beach Municipal Code Section 15.02.085 Addition of
Section 105.3.1.1
46
ATTACHMENT A
FY 2023-24 STUDIED DEPARTMENT CHANGES – ILLUSTRATION OF PROPOSED FEE CHANGES
47
ILLUSTRATION OF PROPOSED FEE CHANGES
This List Does Not Include All City Fees and Charges
Fees Shown are Limited to Those Studied During the Current Fee Study Cycle
Appendix B: p. 1 48
Fee Type Page
FINANCE - REVENUE SERVICES FEES 3
HARBOR DEPARTMENT SERVICES FEES 5
INFORMATION TECHNOLOGY HOURLY COST FOR DIRECT SERVICES 8
PUBLIC WORKS FEES
ENGINEERING FEES AND HARBOR RESOURCES FEES 9
MUNICIPAL OPERATIONS FEES 12
WATER QUALITY / CONSERVATION / ENVIRONMENTAL SERVICES FEES 13
UTILITY SERVICES FEES 14
CREDIT CARD / MOBILE APPLICATION PAYMENT CONVENIENCE FEE 16
CIVIL SUBPOENA FEES 17
PLANNING AND BUILDING FEES 18
TAXICAB OPERATOR LICENSING FEE 19
TOW FEE / VEHICLE RELEASE FEE 20
City of Newport Beach
Illustration of Proposed Fee Changes
Appendix B: p. 2 49
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - FINANCE - REVENUE SERVICES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
FINANCE - REVENUE SERVICES
1 Adult Oriented Business Permits $1,383.00 $1,404 1%$21 99%100%
2 Business License Processing Fees
a) Business License Initial Application (online)$0.00 $6 n/a - new n/a - new 0%100%
b) Business License Initial Application (in person)$63.00 $17 -73%($46)370%100%
c) Business License - Change in Information $25.00 $14 -43%($11)176%100%
d) Business License - Duplicate $12.00 $12 -1%($0)101%100%
3 Dance Permit $186.00 $178 -5%($9)105%100%
4 Escort Service
a) Escort Service Permit $1,186.00 $1,316 11%$130 90%100%
b) Escort Service Per Employee $609.00 $647 6%$38 94%100%
5 Fire Arms Sales Permit $114.00 $107 -7%($8)107%100%
6 Hotel Special Package Application Review $206.00 $216 5%$10 95%100%
7 Live Entertainment Permit $184.00 $189 3%$5 97%100%
8 Parking Permit
a) Preferential Parking Permit $20.00 $24 18%$4 85%100%
b) Parking Permit Replacement Fee $12.00 $12 -1%($0)101%100%
9 Payment Plan Processing Fee
a) Payment Plan - Except Parking $25.00 $36 42%$11 70%100%
b) Payment Plan - Parking
i) Indigent $5.00 $5 0%$0 14%14%
ii) All Other $25.00 $36 42%$11 70%100%
10 Short-Term Lodging Permits
a) Short Term Lodging Permits - Initial $175.00 $238 36%$63 58%79%
b) Short Term Lodging Permits - Renewal $92.00 $214 133%$122 27%64%
c) Short Term Lodging Permits - Reinstatement $96.00 $107 11%$11 90%100%
d) Short Term Lodging Permits - reprint $13.00 $12 -9%($1)110%100%
e) Short Term Lodging Permits - suspension or revocation hearing - Applicant
Successful
$0.00 $0 0%$0 0%0%
f) Short Term Lodging Permits - suspension or revocation hearing - Applicant
Unsuccessful
$538.00 $738 37%$200 73%100%
Description
Appendix B: p. 3 50
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - FINANCE - REVENUE SERVICES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
11 Sidewalk Vending Permit Application $183.00 $107 -42%($77)172%100%
12 Sound Amplification Permit $78.00 $36 -54%($43)220%100%
13 Vehicles for Hire
a) Vehicles For Hire - Annual Per Vehicle Fee $250.00 $250 0%$0 n/a - not examined n/a - not examined
b) Vehicles For Hire - Certificate $2,281.00 $2,281 0%$0 n/a - not examined n/a - not examined
c) Vehicles For Hire - Driver's Permit $454.00 $454 0%$0 n/a - not examined n/a - not examined
d) Vehicles For Hire - Driver's Permit Renewal $443.00 $443 0%$0 n/a - not examined n/a - not examined
e) Vehicles For Hire - Fee per Vehicle $250.00 $250 0%$0 n/a - not examined n/a - not examined
14 Zero Bill Reprints No Charge No Charge 0%$0 0%0%
Appendix B: p. 4 51
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - HARBOR DEPARTMENT SERVICES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
HARBOR DEPARTMENT
1 Appeals
a) Appeal of Harbormaster Decision to Harbor Commission
i) Appellant Successful $0.00 $0 0%$0 0%0%[a]
ii) Appellant Unsuccessful $1,250.00 $623 -50%($628)100%50%[a]
b) Appeal of Harbor Commission Decision to City Council
i) Appellant Successful $0.00 $0 0%$0 0%0%[a]
ii) Appellant Unsuccessful $940.00 $498 -47%($442)94%50%[a]
2 Dinghy Rack Rental
a) Dinghy Rack Rental Application Fee $20.00 $26 28%$6 78%100%
b) Dinghy Rack Rental - Marina Park/Balboa Yacht Basin - Per Month $38.00 $39 2%$1 n/a n/a
3 Environmental Response $77.00 $535 594%$458 14%100%
4 Impound Fee
a) Impound Fee - Initial $110.00 $243 121%$133 45%100%
b) Impound Fee - Loose or Lost and Found Boats/Vessels $56.00 $106 90%$50 53%100%
5 Key Card Replacement $13.00 $17 33%$4 75%100%
6 Large Boat Escort / Permit
a) Large Boat Escort $107.00 $172 60%$65 62%100%
b) Large Boat Permit (≥80 Lineal Feet)$78.00 $537 588%$459 15%100%
c) Large Boat Permit (≥80 Lineal Feet), Requiring Interagency Coordination $779.00 $1,148 47%$369 68%100%
7 Live Aboard Permit $395.00 $441 12%$46 90%100%
8 Lost/Broken Line $64.00 $86 35%$22 74%100%
9 Marina Park
a) Marina Park Deposit - Slip Reservation Deposit $50.00 $50 n/a n/a n/a n/a
b) Marina Park Cancellation Fee $13.00 $17 33%$4 75%100%
c) Marina Park - Flat Rate for Electricity $13 plus actual per
kWh usage
$19 plus actual per
kWh usage
varies varies varies varies
Description
Appendix B: p. 5 52
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - HARBOR DEPARTMENT SERVICES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
10 Marine Activities Permit
a) Service Providers
i) Initial $386.00 $394 2%$8 n/a n/a
ii) Renewal $87.00 $89 2%$2 n/a n/a
b) Charters, Boat Rentals, Human-Powered Rentals
i) Initial $1,203.00 $1,227 2%$24 n/a n/a
ii) Renewal $465.00 $474 2%$9 n/a n/a
11 Mooring Extension Permit $533.00 $515 -3%($18)103%100%
12 Multiple Vessel Mooring System Application Fee $533.00 $515 -3%($18)103%100%
13 Special Events - Harbor
a) Simple (Raft Up, Boat Race, etc.) $101.00 $136 34%$35 75%100%
b) Complex $519.00 $996 92%$477 52%100%
14 Temporary Sea Lion Deterrent $148.00 $201 36%$53 74%100%
15 Towing Fee
a) Boats under 14'$74.00 $129 75%$55 57%100%
b) Boats over 14'$27 plus 100%
Contractor Cost
$176 plus 100% of
Contractor Cost
varies varies varies 100%
c) Abandoned / Impounded Boats Over 14' but less than 25'n/a - new $377 varies varies 0%100%
16 Wait List
a) Wait List for Balboa Yacht Basin Slips and Garages $34.00 $34 -1%($0)101%100%
b) Wait List for Balboa Yacht Basin/Marina Park Dinghy Racks $27.00 $34 25%$7 80%100%
c) Wait List for Live Aboard $27.00 $30 9%$3 92%100%
Appendix B: p. 6 53
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - HARBOR DEPARTMENT SERVICES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
17 Mooring / Slip Rental / Storage
a) Dinghy Storage - Per Lineal Foot (LF)/Per Night $0.69 $0.70 2%$0.01 n/a n/a
b) Guest Moorings - Onshore - Per Lineal Foot (LF)/Per Night $0.69 $0.70 2%$0.01 n/a n/a
c) Guest Moorings - Offshore - Per Lineal Foot (LF)/Per Night $1.39 $1.42 2%$0.03 n/a n/a
d) Impound - Nightly Storage Fee - Per Lineal Foot (LF)/Per Night Same as Guest
Mooring Rate
Same as Guest
Mooring Rate
2%$0.00 n/a n/a
e) Large Vessel (80+ LF) Offshore Guest Mooring - Per Lineal Foot (LF)/Per Night $1.72 $1.75 2%$0.03 n/a n/a
f) Large Vessel Guest Anchorage Rate - Non City Tackle - no boat $0.52 $0.53 2%$0.01 n/a n/a
g) Marina Park Boat Slips (40' Slip) - Per Night $88.00 $90 2%$2 n/a n/a
h) Marina Park Boat Slips (55' Slip) - Per Night $121.00 $123 2%$2 n/a n/a
i) Marina Park Boat Slips (Overhang Charge) - Per Foot/Per Night $2.22 $2.26 2%$0.04 n/a n/a
j) Moorings - Offshore - Per Lineal Foot (LF)/Per Year $39.38 $40.17 2%$0.79 n/a n/a [b]
k) Moorings - Onshore - Per Lineal Foot (LF)/Per Year $19.68 $20.07 2%$0.39 n/a n/a [b]
l) Multi-hull Vessel - 2 hulls - Per Lineal Foot (LF)/Per Night $1.66 $1.69 2%$0.03 n/a n/a
m) Multi-hull Vessel - 3 hulls - Per Lineal Foot (LF)/Per Night $1.94 $1.98 2%$0.04 n/a n/a
18 Rhine Wharf permit n/a - new $28 n/a - new n/a - new 0%100%
19 Variance applications n/a - new $498 n/a - new n/a - new 0%100%
20 Use of electrical cord and/or adapter while at Marina Park n/a - new $10 n/a - new n/a - new n/a n/a
21 Purchase (non-return) of electrical cord or adapter n/a - new $75 n/a - new n/a - new 0%100%
22 Mooring size exchange n/a - new $302 n/a - new n/a - new 0%100%
23 Mooring license application fee n/a - new $26 n/a - new n/a - new 0%100%
24 Mooring license waitlist fee (one time or annual)n/a - new $34 n/a - new n/a - new 0%100%
25 Group/exclusive use fee for Marina Park n/a - new $502 n/a - new n/a - new 0%100%
26 Mooring Assists - After Hours n/a - new $200 n/a - new n/a - new 0%100%
27 Deposit/late cancellation fee for use of Human Lift - Marina Park n/a - new $31 n/a - new n/a - new 0%100%
28 Deposit/late cancellation fee for use of Human Lift - Balboa Marina PD n/a - new $117 n/a - new n/a - new 0%100%
[a] NBMC Chapter 17.65.
[b] Resolution 2016-17. Adjusted annually by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers ("CPI"), Los Angeles-Riverside-Orange County Region or 2%, whichever is less.
Appendix B: p. 7 54
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - INFORMATION TECHNOLOGY
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
INFORMATION TECHNOLOGY
1 Hourly Rate for A/V / Technical Support Associated with Fee and Charge Related
Activities (e.g., support associated with facility rentals)
a) Business Hours - Per Hour n/a - new $144 n/a - new n/a - new 0%100%
b) Non-Business Hours - Per Hour n/a - new $173 n/a - new n/a - new 0%100%
Description
Appendix B: p. 8 55
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - PUBLIC WORKS ENGINEERING AND HARBOR RESOURCES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
PUBLIC WORKS - ENGINEERING
1 Covenant Agreement Research & Review Fee (Per Hour)$177.00 $202 14%$25 88%100%
2 Dining Encroachment
a) Dining Encroachment Permit - Application $486.00 $540 11%$54 90%100%
b) Dining Encroachment Permit - Transfer $223.00 $249 12%$26 90%100%
c) Dining Encroachment Annual Use Fee
i) 100 SF or Less $176.00 $180 2%$4 n/a n/a
ii) Over 100 SF $331.00 $338 2%$7 n/a n/a
3 Document Recordation Fee $216.00 $207 -4%($9)104%100%
4 Easement Deed Research, Reviews/Processing $266.00 $263 -1%($4)101%100%
5 Encroachment & Eng. Agreement Prep
a) Encroachment & Eng. Agreement Prep $609.00 $788 29%$179 77%100%
b) Encroachment & Eng. Agreement Prep - Planning Commission $3,321.00 $2,722 -18%($599)122%100%
6 Encroachment Permit
a) Encroachment Permit With Other Dept./Div. Review $468.00 $525 12%$57 89%100%
b) Encroachment Permit Without Other Dept./Div. Review $266.00 $303 14%$37 88%100%
7 Engineering Field Inspection - Per Inspection $146.00 $90 -38%($56)162%100%[a],[b]
8 Escrow Account Administration $132.00 $134 2%$2 99%100%
9 Fair Share Fee $225.64 $225.64 0%$0 n/a n/a
10 Lot Line Adjustment Checking Fee $1,242.00 $1,080 -13%($162)115%100%
11 Monitoring Wells $367.00 $414 13%$47 89%100%
12 News Rack Permits $64.00 $81 27%$17 79%100%
13 Oceanfront Encroachment Annual Permit
a) Depth of Encroachment - 0 -5.0 Feet $423.00 $431 2%$8 n/a n/a
b) Depth of Encroachment - 5.0 - 7.5 Feet $635.00 $648 2%$13 n/a n/a
c) Depth of Encroachment - 7.5 - 10.0 Feet $847.00 $864 2%$17 n/a n/a
d) Depth of Encroachment - 10 - 15 Feet $1,272.00 $1,297 2%$25 n/a n/a
Description
Appendix B: p. 9 56
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - PUBLIC WORKS ENGINEERING AND HARBOR RESOURCES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
14 Parcel Map Check $3,286.00 $2,144 -35%($1,143)153%100%
15 Plan Check (per hour)$215.00 $234 9%$19 92%100%
16 Street Closure Permit
a) Street Closure Permit with Engineering Review
i) Permit Fee $82.00 $96 17%$14 85%100%
ii) Field Inspection - Per Inspection (if required)n/a $90 n/a $90 100%[b]
b) Street Closure Permit without Engineering Review
i) Permit Fee $32.00 $41 27%$9 79%100%
ii) Field Inspection - Per Inspection (if required)n/a $90 n/a $90 100%[b]
17 Street Easement and Vacation Processing Fee $1,073.00 $1,191 11%$118 90%100%
18 Temporary No Parking Signs (per sign)$0.80 $1 10%$0 91%100%
19 Tract Plan Check
a) Up to $100,000 Improvement 6.5% of value up to
$100,000. $390
minimum
6.5% of value up to
$100,000. $390
minimum
0%$0 varies varies
b) $100,000 - $400,000 Improvement $8,680 Base fee for
first $100,000 + 5%
incremental costs
for amount over
$100,000
$8,680 Base fee for
first $100,000 + 5%
incremental costs
for amount over
$100,000
0%$0 varies varies
c) Over $400,000 Improvement $28,710 Base fee
for first $400,000 +
4% incremental
costs for amount
over $400,000
$28,710 Base fee
for first $400,000 +
4% incremental
costs for amount
over $400,000
0%$0 varies varies
20 Traffic Control Plan Check
a) 8½" x 11"/11" x17"; per sheet $82.00 $96 17%$14 85%100%
b) 24" x 36"; per sheet $183.00 $207 13%$24 88%100%
21 Traffic Study Consultant Cost +
10% City
Administrative Fee
Consultant Cost +
10% City
Administrative Fee
0%$0 0%100%
22 Traffic Subdivision Plan Check (per hour)$177.00 $222 25%$45 80%100%
Appendix B: p. 10 57
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - PUBLIC WORKS ENGINEERING AND HARBOR RESOURCES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
Deposits - (Refundable)
23 Crane Deposit $1,000.00 $1,000 0%$0 n/a n/a
24 Improvements Required By City Determined by
Public Works
Determined by
Public Works
0%$0 n/a n/a
PUBLIC WORKS - HARBOR RESOURCES
25 Piers
a) Residential - Per Square Foot $0.55 $0.55 0%$0 n/a n/a
b) Pier Permit Transfer (line moved)$259.00 $324 25%$65 80%100%
26 Plan Review - (Additional Fees Apply if Public Hearing Required)
a) Plan Check Fee - New Construction w/ Agency Approval $259.00 $405 56%$146 64%100%
b) Plan Check Fee - Maintenance $64.00 $162 153%$98 40%100%
27 Public Hearing Fees (for Appeal, Variance, Plan Review, etc.)
a) Public Hearing - Variance (Harbor Commission)varies $2,893 varies varies 0%100%
b) Public Hearing - (Harbor Commission)$2,253.00 $1,765 -22%($489)128%100%
c) Public Hearing - Appellant Successful (Harbor Commission)$0.00 $0 0%$0 0%0%
d) Public Hearing - Appellant Unsuccessful (Harbor Commission)$1,250.00 $1,446 16%$196 43%50%
e) Public Hearing - Appellant Successful (City Council)$0.00 $0 0%$0 0%0%
f) Public Hearing - Appellant Unsuccessful (City Council)$940.00 $691 -27%($250)68%50%
g) Director/Staff Approval varies $856 varies varies 0%100%
28 RGP Dredging Permit $3,450.00 $1,703 -51%($1,747)varies 100%
[a] Curb/Gutter/Sidewalk/Driveway/Non-standard Imp. - Each Inspection 1/30'/Sewer/Water Meter/Fire Service/Underground Utilities-Each Insp./location/Parkway Drains - Each Inspection
[b] Engineering field inspection fee will be applied with street closure permit when inspections are required.
Appendix B: p. 11 58
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - PUBLIC WORKS MUNICIPAL OPERATIONS FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
PUBLIC WORKS - MUNICIPAL OPERATIONS
1 Recycling Service Fee - Per Residential Unit, Per Month $6.56 - $7.03 $6.39 varies varies varies 100%
a) Excluding Newport Coast and Santa Ana Heights - Per Residential Unit, Per
Month
$7.03 See above n/a n/a n/a n/a
b) Newport Coast - Per Residential Unit, Per Month $6.56 See above n/a n/a n/a n/a
2 Solid Waste Franchise Application $1,005.00 $1,652 64%$647 61%100%
3 Supplemental Tree Trimming pass through of
100% of contract
svc cost
pass through of
100% of contract
svc cost
n/a n/a 100%100%
4 Tree Planting / Removal pass through of
100% of contract
svc cost
pass through of
100% of contract
svc cost
n/a n/a 100%100%
5 Washington Street Trash Bin Variable - See Reso
#97-70 and #2021-
65
Variable - See Reso
#97-70 and #2021-
65
n/a n/a n/a n/a
6 Construction and Demolition
a) Public Works Waste Management Administration Fee $281.00 $303 8%$22 93%100%
b) Construction and Demolition Deposit
i) Complete Demolition Deposit
a) Valuation of $0 to $4,999 $564.00 $564 0%$0 n/a - deposit n/a - deposit
b) Valuation of $5,000 to $9,999 $1,127.00 $1,127 0%$0 n/a - deposit n/a - deposit
c) Valuation of $10,000 and above $1,692.00 $1,692 0%$0 n/a - deposit n/a - deposit
ii) Construction Demolition Deposit
a) Valuation of $100,000 to $299,999 $564.00 $564 0%$0 n/a - deposit n/a - deposit
b) Valuation of $300,000 to $599,999 $564.00 $1,127 100%$563 n/a - deposit n/a - deposit
c) Valuation of $600,000 and above $564.00 $1,692 200%$1,128 n/a - deposit n/a - deposit
b) Demolition Deposit
i) Valuation - $0 - $4,999 $564.00
ii) Valuation - $5,000 - $9,999 $1,127.00
i) Valuation - $10,000 and Above $1,692.00
Description
Appendix B: p. 12 59
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - PUBLIC WORKS WATER QUALITY / CONSERVATION / ENVIRONMENTAL SERVICES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
PUBLIC WORKS - WQ/CONSERVATION/ENV SVCS
1 EV Charging Rate
a) Base Rate - per kWh $0.50 $0.52 4%$0.02 96%100%
b) Overstay Rate $0.10 per minute;
$6.00 per hour
$0.10 per minute;
$6.00 per hour
0%$0 n/a n/a [a]
2 Water Quality Construction Site Inspection
a) Site Inspection - Low $161.00 $196 22%$35 82%100%
b) Site Inspection - Medium $484.00 $589 22%$105 82%100%
c) Site Inspection - High
i) Base Fee - Up to 8 inspections $1,291.00 $1,571 22%$280 82%100%
ii) Fee for each additional inspection if more than 8 inspections are required $161.00 $196 22%$35 82%100%
[a] For maximum fee see 22511.1(A) CVC EV Parking - Not Charging. Per minute rate begins after 10-minute grace period.
Description
Appendix B: p. 13 60
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - UTILITY SERVICES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
UTILITIES
Miscellaneous
1 Annual Grease Disposal Mitigation Fee $634.00 $718 13%$84 88%100%
2 FOG Annual Permit No Charge No Charge 0%$0 0%0%
3 FOG Non-Compliance $74.00 $75 2%$1 100%100%
4 Re-inspection Fee $175.00 $196 12%$21 89%100%
5 Utilities Field Inspection $284.00 $294 4%$10 97%100%
Sewer Related Fees
6 Meters, Boxes, Lids, Etc.
a) Base Fee n/a - new $53 n/a - new n/a - new 0%100%
b) Plus, Actual Cost of Meter, Box, Lid, Etc.varies Pass-through of
Actual Cost of
Materials
varies varies n/a 100%
7 Sewer Only Establishment Fee $52.00 $52 0%($0)100%100%
8 Sewer 4TT Box (Main Line)$38.79 See above n/a n/a n/a n/a
9 Sewer 4TT Box Lid (Main Line)$24.48 See above n/a n/a n/a n/a
Water Related Fees
8 Construction Water Meter
a) Establishment Charge - Application $106.00 $105 -1%($1)0%50%
b) Meter Deposit $1,250.00 $1,250 0%$0 0%0%
c) Monthly Charge See - 2" domestic
meter rate
See - 2" domestic
meter rate
n/a n/a 0%0%
9 Delinquent Water Service Discontinuance $148.00 $147 -1%($1)0%100%
10 Delinquent Water Service Restoration
a) Low Income Household - below 200% of the federal poverty line
i) Business Hours $50.00 $50 0%$0 25%25%
ii) After Hours $150.00 $150 0%$0 74%74%
b) All Others
i) Business Hours $269.00 $304 13%$35 83%100%
ii) After Hours $289.00 $336 16%$47 80%100%
Description
Appendix B: p. 14 61
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - UTILITY SERVICES FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
11 Hydrant Flow Test
a) Hydrant Flow Test - Highway Test (Night Time)$535.00 $646 21%$111 83%100%
b) Hydrant Flow Test - Non-Highway (Regular Hours)$475.00 $541 14%$66 88%100%
12 Meters, Boxes, Lids, Etc.
a) Base Fee n/a - new $53 n/a - new n/a - new 0%100%
b) Plus, Actual Cost of Meter, Box, Lid, Etc.varies Pass-through of
Actual Cost of
Materials
varies varies n/a 100%
13 Water and Sewer Service Establishment Fee - Business Hours
a) Business Hours
i) Remote Activation (NEW)$123 - $127 $52 varies varies n/a - new 100%
ii) Onsite Activation Required $123 - $127 $176 varies varies varies 100%
b) Non-Business Hours $339.00 $405 20%$66 84%100%
14 Water Meter Service Installation Fee $754.00 $754 0%($0)100%100%
15 Water Shut Off-Tag Placement $33.00 $28 -14%($5)116%100%
16 3/4 Inch Meter Box $52.79 See above n/a n/a n/a n/a
17 3/4 Inch Meter Box Lid $25.86 See above n/a n/a n/a n/a
18 5/8 & 3/4 Inch Water Meter $172.40 See above n/a n/a n/a n/a
19 1 Inch Meter Box $78.32 See above n/a n/a n/a n/a
20 1 Inch Meter Box Lid $42.02 See above n/a n/a n/a n/a
21 1 Inch Water Meter $193.95 See above n/a n/a n/a n/a
22 1.5 Inch Turbine Water Meter $491.34 See above n/a n/a n/a n/a
23 1.5 Inch Water Meter $463.33 See above n/a n/a n/a n/a
24 2 Inch Meter Box $138.69 See above n/a n/a n/a n/a
25 2 Inch Meter Box Lid $72.19 See above n/a n/a n/a n/a
26 2 Inch Turbine Water Meter $573.23 See above n/a n/a n/a n/a
27 2 Inch Water Meter $565.69 See above n/a n/a n/a n/a
28 Main Line Valve Box $38.79 See above n/a n/a n/a n/a
29 Main Line Valve Box Lid $34.48 See above n/a n/a n/a n/a
Appendix B: p. 15 62
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - CREDIT CARD / MOBILE APPLICATION PAYMENT CONVENIENCE FEE
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
1 Credit Card Convenience Fee (% of fee paid by credit card)n/a - new 2.85%n/a - new n/a - new 0%100%[a]
2 Parking Meter Mobile Application Payment Processing Fee
Vendor Transaction Fee for Online Payment Processing
Pass-Through Pass-Through 0%$0 100%100%[b]
3 Credit Card Fees on Charges in Excess of $20,000 Pass-Through Pass-Through [c]
Description
[a] Credit convenience fees currently applicable for online utility bill payments and other payments received by the City in excess of $20,000. The City may determine to apply a similar fee to other receipts collected by the City via
credit card (e.g., business license payment).
[b] Renaming fee for fee schedule clarity.
[c] Removing from fee schedule. Renamed to Credit Card Convenience Fee.
Appendix B: p. 16 63
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - CIVIL SUBPOENA FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
1 Civil Subpoena (per day; per employee)$275.00 Actual Cost; with
$275 per day initial
amount
varies varies n/a n/a [a],[b],[c]
a) All Staff Except Sworn Officers and Firefighters (per day; per employee)$275.00
b) Sworn Officers and Firefighters (per day; per employee)$275.00
Description
[b] Actual amounts paid shall be calculated in accordance with California Government Code 68097.2. (b) The party at whose request the subpoena is issued shall reimburse the public entity for the full cost to the public entity incurred in
paying the peace officer, firefighter, state employee, trial court employee, or specified county employee his or her salary or other compensation and traveling expenses as provided for in this section, for each day that the peace officer,
firefighter, state employee, trial court employee, or specified county employee is required to remain in attendance pursuant to the subpoena. The amount of two hundred seventy-five dollars ($275), together with the subpoena, shall be
tendered to the person accepting the subpoena for each day that the peace officer, firefighter, state employee, trial court employee, or specified county employee is required to remain in attendance pursuant to the subpoena. (c) If the
actual expenses should later prove to be less than the amount tendered, the excess of the amount tendered shall be refunded. (d) If the actual expenses should later prove to be more than the amount deposited, the difference shall be
paid to the public entity by the party at whose request the subpoena is issued.
[a] Actual amounts paid shall be calculated in accordance with California Government Code 68096.1. (a) Any employee of a local agency who is obliged by a subpoena to attend a civil action or proceeding as a witness in litigation in a
matter regarding an event or transaction that he or she perceived or investigated in the course of his or her duties, to which that local agency is not a party, shall receive the salary or other compensation to which he or she is normally
entitled from that local agency during the time that he or she prepares for his or her response and appearance, during the time that he or she travels to and from the place where the court or other tribunal is located and while he or she
is required to remain at that place pursuant to the subpoena. He or she shall also receive from that local agency the actual necessary and reasonable traveling expenses he or she incurred in complying with the subpoena. (b) The party at
whose request the subpoena is issued shall reimburse the local agency for the full cost incurred by the local agency in paying the employee his or her salary or other compensation and traveling expenses as provided for in this section, for
each day that the employee is required to remain in attendance pursuant to the subpoena. The amount of two hundred seventy-five dollars ($275), together with the subpoena, shall be tendered to that local agency for each day that the
employee is required to remain in attendance pursuant to the subpoena. (c) If the actual expenses should later prove to be less than the amount tendered, the excess of the amount tendered shall be refunded. (d) If the actual expenses
should later prove to be more than the amount tendered, the difference shall be paid to the local agency by the party at whose request the subpoena was issued.
[c] Salary/other compensation shall be determined based on the City's most current adopted salary schedule (top step) by position, subject to existing MOU provisions and minimums for court appearances. If preparation, service, or
travel is provided during overtime hours, the City shall use overtime rate for calculating actual costs, subject to existing MOU provisions and minimums for court appearances.
Appendix B: p. 17 64
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - PLANNING AND BUILDING FEES
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
1 Banner / Sign Permit $59.00 $59.00 0%$0 n/a n/a
2 General Plan Maintenance Fee - % of Building Permit Fee 5%5%0%$0 n/a n/a [a]
Description
[a] The fee will be applied as five percent (5%) to permit fees for all new construction, additions, and additions with alterations for the residential and commercial projects.
Appendix B: p. 18 65
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - TAXICAB OPERATOR LICENSING
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
1 Taxicab Permitting
a) Company Permit n/a $1,660 n/a n/a n/a 100%[a]
b) Vehicle Permit (Per Vehicle)n/a $1,399 n/a n/a n/a 100%[a]
c) Driver Permit n/a $1,660 n/a n/a n/a 100%[a]
Description
[a] Amount shown does not include applicable fingerprint/livescan fees and any fees collected on behalf of other agencies (e.g., Department of Justice fees).
Appendix B: p. 19 66
City of Newport Beach
BEFORE AND AFTER ILLUSTRATION - TOW FEE / VEHICLE RELEASE FEE
Current Fee Proposed Fee Fee Change %Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
1 Tow Fee / Vehicle Release Fee $185
See below for fee
breakdown
$185
See below for fee
breakdown
0%$0 100%100%
a) Tow Operator Fee $55
a) Customer Fee $110 $156
b) Vehicle Release Fee $20 $29
Description
Appendix B: p. 20 67
ATTACHMENT B
NEWPORT BEACH MUNICIPAL CODE SECTION 3.36.030 CHANGES
68
Newport Beach Municipal Code
Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 1/9
The Newport Beach Municipal Code is current through Ordinance 2023-22, passed November 28, 2023.
Chapter 3.36
COST RECOVERY FOR USER SERVICES
3.36.030 Cost Recovery Percentages.
A. The municipal functions the City Council has determined to be user services and for which the
City Council has initially determined the actual costs and the appropriate cost recovery percentage are
described in the fee resolution. The cost recovery percentage appropriate for each user service shall
be one hundred (100) percent with the exception of the user services listed in Exhibit “A” and those
services for which the fee is limited by statute. The City Council may include in the fee resolution a
schedule to phase in specific fee increases over a period not to exceed five (5) years.
B. The City Council shall establish, pursuant to the fee resolution, the actual fee or charge for each
user service described in the fee resolution. The fee or charge shall be based upon the actual cost of
providing the user service, multiplied by the relevant cost recovery percentage.
C. The City Council may, without amending this chapter, modify (increase or decrease) the fee
resolution to amend the amount of any fee or charge for, and the actual cost of providing, any user
service upon a determination that there has been an increase or decrease in one or more of the cost
factors relevant to the calculation of the actual cost of providing that service.
D. The City Council may modify the municipal functions determined to be user services in the
fee resolution and the cost recovery percentage for any service only by amending this chapter.
E. Fees for service established in the fee resolution may be waived by:
1. The City Council;
2. The City Manager, up to an amount not to exceed one thousand dollars ($1,000.00),
per occurrence, for fees imposed on nonprofit organizations for nonprofit sponsored
events; or
3. The City Manager or the Finance Director up to an amount not to exceed five thousand
dollars ($5,000.00), per occurrence, if the City Manager or Finance Director determines that the
imposition of the fee would exceed the actual cost to the City or would result in duplicative fees
for services rendered.
69
Newport Beach Municipal Code
Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 2/9
The Newport Beach Municipal Code is current through Ordinance 2023-22, passed November 28, 2023.
Exhibit A
The City’s cost of providing the following services shall be recovered through direct fees charged for
services. Exhibit “A” limits cost recovery fees to the percentages or dollar amounts indicated below.
Service
Percentage of
Cost or Amount
to Be Recovered
from Direct Fees
All Departments
Appeals—For Any User
Services Appeal Not
Otherwise Specified—
Appellant Successful
0%
Appeals—For Any User
Services Appeal Not
Otherwise Specified—
Appellant Unsuccessful
50%
Community Development
Department
Chapter 17.65 Appeal—
Appellant Successful
0%
Chapter 17.65 Appeal to
City Council—Appellant
Unsuccessful
$940
Chapter 17.65 Appeal to
Harbor Commission—
Appellant Unsuccessful
$1,250
Building
Appeals Board Hearing
—Appellant Successful
0%
70
Newport Beach Municipal Code
Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 3/9
The Newport Beach Municipal Code is current through Ordinance 2023-22, passed November 28, 2023.
Appeals Board Hearing
—Appellant
Unsuccessful
50%
Harbor Construction 50%
Preliminary Plan
Review
First Two Hours
Free, Full Cost
Thereafter
Planning
Appeals to City Council
or Planning
Commission— Appellant
Successful
0%
Appeals to City Council
or Planning
Commission— Appellant
Unsuccessful
50%
Coastal Development
Permit Application
Appeals from Zoning
Administrator to
Planning Commission
0%
General Plan
Maintenance Fee
12%
Reasonable
Accommodation
0%
Finance Department
Admin. Cite Hearings 0%
Parking Hearings 0%
71
Newport Beach Municipal Code
Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 4/9
The Newport Beach Municipal Code is current through Ordinance 2023-22, passed November 28, 2023.
Payment Plans (Except
Parking)
$25
Short Term Lodging
Permit Suspension or
Revocation Hearing—
Appellant Successful
0%
Short Term Lodging
Permit Suspension or
Revocation Hearing—
Appellant Unsuccessful
50%
Zero Bill Reprint 0%
Fire Department
Emergency Medical
Services
Advanced Life Support
(ALS)—Nontransport
$400
Basic Life Support
(BLS)—Nontransport
$400
ALS First Responder
Fee
$400
BLS First Responder
Fee
$400
Harbor Department
Chapter 17.65 Appeal —
Appellant Successful
0%
Chapter 17.65 Appellant
Appeal to City Council –
Applicant Appellant
Unsuccessful
$94050%
72
Newport Beach Municipal Code
Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 5/9
The Newport Beach Municipal Code is current through Ordinance 2023-22, passed November 28, 2023.
Chapter 17.65 Appeal to
Harbor Commission—
Appellant Unsuccessful
$1,25050%
Library Services
Department
Black and White Copies
from Self-Service Copier
or Printer
$0.15
Color Copies from Self-
Service Copiers or
Printers
$0.45
Use Fees—Materials $1
Inter-Library Loan $5
Police Department
Bike Licenses 0%
Citation Sign-off $10
Fingerprinting—City
Portion
$25
Secondhand/Pawn Dealer
Tag Check
0%
Registrant—Narcotics 0%
Registrant—Sex 0%
Animal Shelter
Adoption Fee—
Puppies
$225
Adoption Fee—Senior
Dog—Animal Over
Eight (8) Years Old
$70
73
Newport Beach Municipal Code
Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 6/9
The Newport Beach Municipal Code is current through Ordinance 2023-22, passed November 28, 2023.
Adoption Fee—Dog—
All Other
$150
Adoption Fee—Kittens $110
Adoption Fee—Senior
Cat—Animal Over
Eight (8) Years Old
$70
Adoption Fee—Cat—
All Other
$90
Adoption Fee—Small
Animals
$45
Boarding Fee (per day)
—Animals
$25
Boarding Fee (per day)
—Small Animals
$10
Owner Turn-In Fee—
Altered Animal
$100
Owner Turn-In Fee—
Unaltered Animal
$200
Impound Fee—Dogs,
Cats, Small Animals
$62
Public Works Department
Chapter 17.65 Appeal —
Appellant Successful
0%
Chapter 17.65 Appeal to
City Council–Appellant
Unsuccessful
$94050%
Chapter 17.65 Appeal to
Harbor Commission—
Appellant Unsuccessful
$1,25050%
74
Newport Beach Municipal Code
Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 7/9
The Newport Beach Municipal Code is current through Ordinance 2023-22, passed November 28, 2023.
RGP Dredging Permit 100%
Recreation and Senior
Services Department
Adult Sports 50%—95%
Administrative
Processing Fee
$5
Badge Replacement $5
After School/Camp
Programs
Camps 20%—50%
After-School/Teen
Program
20%—50%
Preschool Program 20%—50%
Aquatics 20%—50%
Contract Classes 50%—95%
Class Refunds
$74 or less $10
$75 or more $20
Youth Sports 20%—50%
Special Events—Levels
1, 2, and 3
Resident, Level 1 and
Late Fees for Level 1
0%—20%
Resident, Levels 2—3
and Late Fees for
Levels 2—3
20%—50%
75
Newport Beach Municipal Code
Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 8/9
The Newport Beach Municipal Code is current through Ordinance 2023-22, passed November 28, 2023.
Nonresident, Levels 1
—2 and Late Fees for
Level 1
20%—50%
Nonresident, Level 3
and Late Fees for
Levels 2—3
50%—95%
Appeal to City Council—
Appellant Successful
0%
Appeal to City Council—
Appellant Unsuccessful
50%—95%
Natural Resources
Programs
0%—20%
Senior Services
OASIS Transportation $1—$3 each
way
Contract Classes 20%—50%
Fitness Center 50%—95%
Utilities Department
Construction Water Meter
Establishment
50%
Fats, Oils, and Grease
(FOG) Annual Permit
0%
City Council, Board,
Commission, Committee or
Any Individual Member
Thereof When Acting
Within the Scope of Their
Official Duties
76
Newport Beach Municipal Code
Chapter 3.36 COST RECOVERY FOR USER SERVICES Page 9/9
The Newport Beach Municipal Code is current through Ordinance 2023-22, passed November 28, 2023.
Review from a Lower
Body or Official
$0
(Ord. 2023-22 § 184, 2023; Ord. 2023-7 § 1, 2023; Ord. 2022-10 §§ 3, 4, 2022; Ord. 2021-13 § 1, 2021; Ord. 2021-7 § 1, 2021;
Ord.
2020-10 § 1, 2020; Ord. 2020-5 § 4, 2020; Ord. 2018-15 § 1, 2018; Ord. 2018-13 § 1, 2018; Ord. 2016-14 § 1, 2016; Ord. 2015-29
§ 1,
2015; Ord. 2015-9 § 1, 2015; Ord. 2013-18 §§ 1, 2, 2013; Ord. 2013-1 § 1, 2013; Ord. 2011-28 § 1, 2011; Ord. 2011-10 § 1, 2011;
Ord.
2009-32 § 1 (Exh. A), 2010; Ord. 2009-21 § 1 (Att. 1), 2009; Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 2004-4 § 3, 2004; Ord.
2002-26
Exh. A, 2002; Ord. 2000-24 § 1, 2000; Ord. 98-18 § 1, 1998; Ord. 97-8 §§ 1 (part), 2, 1997)
77
ATTACHMENT C
NEWPORT BEACH MUNICIPAL CODE SECTION 15.02.085 ADDITION OF SECTION 105.3.1.1
78
Newport Beach Municipal Code
Chapter 15.02 ADMINISTRATIVE CODE Section 15.02.085 Page 1/1
The Newport Beach Municipal Code is current through Ordinance 2023-22, passed November 28, 2023.
Chapter 15.02.085
Addition of Section 105.3.1.1
15.02.085 Addition of Section 105.3.1.1.
Section 105.3.1.1 is added as follows:
Section 105.3.1.1 Construction and Demolition permits. Prior to issuance of a demolition permit for
construction having a valuation over $100,000 or for complete demolition of a structure, the permittee
shall certify that a City franchised solid waste enterprise shall be used for the handling, removal and
disposal of all construction and demolition waste. A demolition permit deposit, set by Resolution of the
City Council, shall be paid at the time of submitting the demolition permit application and the Demolition
Contractor Certification and Deposit Form Construction/Demolition Contractor Certification and Deposit
Form. Said deposit shall be returned to the permittee, minus administrative fees set by Resolution of the
City Council, at the conclusion of the demolition project, upon the submittal of documentation that a
franchised solid waste enterprise was used to handle, remove and dispose of all construction and
demolition wastes. The demolition permit deposit shall be forfeited in its entirety if a franchised solid
waste enterprise is not used to handle, remove and dispose of all construction and demolition wastes.
If the Building Official finds that the work described in an application for a demolition permit and the plans,
specifications and other data filed therewith conform to the requirements of this Code and the technical
codes and other pertinent laws and ordinances, and that the fees specified in Section 109 have been paid
and that a franchised solid waste enterprise is being used, the building official shall issue a permit
therefor to the applicant. Prior to any construction or demolition or construction wastes generated
activities authorized by the permit, the permittee shall notify the Public Works Department no less than
twenty-four (24) hours or more than seventy-two (72) hours in advance of its intent to commence any
demolition work and provide the name of the franchised solid waste enterprise that will handle, remove,
and dispose oftransportconduct the construction and demolition activitieswastes. Any hauling or disposal
of demolition and construction wastes by other than the identified franchised solid waste enterprise shall
subject the project to suspension of work as authorized in this cCode and subject the deposit to forfeiture.
(Ord. 2023-22 § 692, 2023; Ord. 2022-26 § 1, 2022)
79
ITEM NO. 6B1 FISCAL YEAR 2023-2024 FEE
STUDY UPDATE
ATTACHMENT A
STAFF PRESENTATION – ADDITIONAL MATERIALS RECEIVED
80
FEE STUDY UPDATE
Finance Committee Meeting -March 14, 2024
81
TYPES OF FEES & FINES
2
Example:Building Permits
Cost Recovery-Based User Fees
Fees limited to recovering the cost of providing the service
Example:Facility Rentals
Market Rate User Fees
The city can charge whatever price the market will pay(must be competitive)
Example:Passport ServiceFeesSetby Law
Some fees are set by Federal or State law
Example:Business LicensesTaxes under Propositions 218 & 26
Certain fees constitute taxes and may not be increased
without a vote of the people
Example:Library Fines
Fines
Fines are not subject to cost recovery rules and may be
set by the Council
City of Newport Beach – Finance Department 82
DEGREE OF GENERAL VS. PRIVATE BENEFIT
3
Commercial
Facility Rentals
Fire Prevention
Inspections
Zoning and Planning
ApprovalsRecreationClasses
Certain Appeals
Non-Profit
Facility Rentals
Police Services
Street Maintenance
Park Maintenance
Tax -Funded Fee-Funded
General Benefit Private Benefit
City of Newport Beach – Finance Department 83
AUTHORITY FOR COST-RECOVERY BASED USER FEES
4
Fiscal Sustainability Plan
Establish appropriate cost-recovery targets and adjust fee structure to ensure that the fees continue to meet cost recovery targets.
City Council Policy F-4 –Revenues Measures
The City will establish appropriate cost-recovery targets for its fee structure and will annually adjust its fee structure to ensure that the fees continue to meet cost recovery targets.
Newport Beach Municipal Code Section 3.36.030 mandates 100% cost recovery (except for subsidized services identified in the municipal code)
City of Newport Beach – Finance Department 84
COST RECOVERY-BASED USER FEES
5
Fees cannot exceed the cost of providing the service
Considerations:
Degree of private benefit
Appropriate cost recovery level
Size of increase that would result from full cost recovery
Calculation of the maximum fee is a math exercise
Type of fee varies based on fit (flat,tiered based on effort,or deposit-based)
Degree of cost recovery is a policy decision
City of Newport Beach – Finance Department 85
EXAMPLE: COST OF SERVICE ANALYSIS
6
Hourly Rate for
Personnel
Providing
Services
Time Required
to Perform the
Servicex =Cost of Service
Fully Burdened
Hourly Rates:
Direct and indirect labor costs
Services and supplies
Agency overhead
Estimated or Known
Times for Providing
Services
Maximum Fee
Amount
City of Newport Beach – Finance Department 86
COST RECOVERY ANALYSIS
7
Revenue from
Current Fee in $
Full Cost of
Service in $Proposed Fee
Current Level of Cost
Recovery
Maximum Level of
Cost Recovery (100%)
Proposed General
Revenue Subsidy
Recommended Level of
Cost Recovery
Current
General Revenue
Subsidy
Minimum Level of Cost
Recovery (0%)
City of Newport Beach – Finance Department 87
FY 23-24 FEE STUDY UPDATE
8
Departments studied
Finance
Harbor
Public Works
Utilities
One-Off Fees
City of Newport Beach – Finance Department 88
FINANCE DEPARTMENT
Fee Changes:
•Decrease in most Business License Processing Fees, Sidewalk Vending Permit Application, and Sound Amplification Permit
•Short-term Lodging Permits (STLP) increase in Initial and Renewal proposed fees
•Proposing phased in approach to STLP over a two-year period
•Continue to follow the City’s adopted cost recovery policy
9
New Fees:
1)Business License Initial Application
(online)
2)Taxicab Operator License Fee
a)Company Permit Fee
b)Vehicle Permit (per vehicle) fee
c)Driver Permit Fee
Fees Last Updated: 2021
Sample Services: Permit review and
issuance for vehicles for hire, short-
term lodging, parking, tax collection.
Net Revenue Impact:
$171,000
City of Newport Beach – Finance Department 89
HARBOR DEPARTMENT
Fee Changes:
•Several new fees are proposed
•Large Variance Increase Environmental Response, Impound Fees, and Large Boat Escort/Permit
•Continue to follow the City’s adopted cost recovery policy
10
Fees Last Updated: 2021
Sample Services: Permit
application review (marine
activities, live aboard,
mooring extension),
waitlists, impounds,
appeals
Net Revenue Impact:
$20,000
New Fees:
1)Towing Fee for Abandoned/Impounded Boats Over 14’ but less than 25’
2)Taxicab Operator License Fee
3)Variance Applications
4)Use of electrical cord and/or adapter while at Marina Park
5)Purchase (non-return) of electrical cord or adapter
6)Mooring size exchange
7)Mooring License Application Fee
8)Mooring License Waitlist Fee
9)Group/exclusive use fee for Marina Park
10)Mooring Assists
11)Deposit/late cancellation fee for use of
Human Lift – Marina Park
12)Deposit/late cancellation fee for use of
Human Lift – Balboa Marina PD
City of Newport Beach – Finance Department 90
PUBLIC WORKS DEPARTMENT
Fee Changes:
•Continue to follow the City’s adopted cost recovery policy
•Changes to existing fees proposed
•Engineering Field Inspection fee to be applied with Street Closure Permit that requires field inspection
•Recycling Service Fee Combination
•Construction and Demolition
11
Fees Last Updated: 2021
Sample Services: Plan
check, permits,
inspections, and
compliance reviews
Net Revenue Impact:
$66,000
New Fees:
No new fees are proposed
NBMC 15.02.085 Section 105.3.1.1 Proposed Update
•Revisions inclusion of construction permit and clarification of language
City of Newport Beach – Finance Department 91
UTILITIES DEPARTMENT
Fee Changes:
•Two new proposed fees
•Meters, Boxes, Lids, Etc. not eliminated, simply reformatted in presentation
•Continue to follow the City’s adopted cost recovery policy
12
New Fees:
1)Meters, Boxes, Lids, Etc. – Base
Fee
2)Water & Sewer Services
Establishment Fee
i. Remote Activation
Fees Last Updated: 2021
Sample Services: Water service
installation and establishment,
delinquent water restoration, hydrant
flow test, construction water meter
establishment
Net Revenue Impact:
($114,820)
City of Newport Beach – Finance Department 92
OTHER UPDATES
•Information Technology: A/V Technical Support
•Police Department:
•Civil Subpoenas
•Towing and Vehicle Release/ Repossession Fee
•Community Development:
•Minor revisions to descriptions in the Banner Permit Fee
•Inclusion of footnote for General Plan Maintenance Fee
•All Departments:
•Credit Card convenience fee of 2.85% for online utility bill payments
•Renaming Vendor Transaction Fee for Online Payment Processing to Parking Meter Mobile Application Processing Fee
13
NBMC 3.36.030 Cost Recovery Percentages Proposed Update
•Modifications to facilitate changes to authorized levels of cost recovery required by the fee changes
City of Newport Beach – Finance Department 93
FISCAL IMPACT OF FEE UPDATES
14
Proposed fee updates will result in approximately $581,000 of additional revenue next fiscal year
Additional revenues expected from proposed changes to fees and charges are intended to offset the cost of providing existing services associated with those fee-related regulatory functions. Additional fee revenue is not intended to fund new services.
Department FY 2024-25 Proposed Net Revenue Impact
Finance Department $171,000
Harbor Department $20,000
Public Works Department $66,000
Utilities Department ($115,000)
Credit Card Convenience Fee $439,000
Total $581,000
City of Newport Beach – Finance Department 94
TIMELINE & RECOMMENDATION
15
Recommendation
March 14,2024
Finance
Committee
Review
April 23,2024
Council Review & First Ordinance Reading ofProposed NBMCChanges
May 14,2024
Council Second Ordinance Reading/Adoptionof Proposed
NBMC Changes
Effective date for proposed fee updates1
Review the proposed fee updates and provide any
recommendations for consideration by the City
Manager and City Council.
Recommendation
July 13,2024
1 –CPI adjustments and new credit
card fee effective July 1st
City of Newport Beach – Finance Department 95
16
QUESTIONS?
City of Newport Beach – Finance Department 96
CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT
Agenda Item No. 6C March 14, 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: REVIEW OF INVESTMENT POLICY
SUMMARY: In September 2023, the Finance Committee completed its annual review of Council Policy F-1. During the meeting, the Finance Committee requested that staff review the
investment pools for the County of Los Angeles and the County of Orange. In January 2024, staff reported to the Finance Committee regarding the County of LA and Orange investment pools and the Finance Committee asked staff to return with a formal recommendation to revise Council Policy F-1. RECOMMENDED ACTION: Review and discuss this report and recommend that the City Council formally approve the proposed changes to Council Policy F-1 by adopting a resolution. DISCUSSION: The California Government Code allows for surplus funds to be invested with any county in the State of California. The City’s Investment Policy currently lists the investment pool for the County of Los Angeles as an authorized investment, whereas the County of
Orange is not listed as an authorized investment. The City has never invested surplus funds with the County of Los Angeles, and Council Policy F-1 does not allow for funds to be invested with the County of Orange. The City has short term investment options with the Local Agency Investment Fund (LAIF), and
the California Asset Management Program (CAMP). LAIF and CAMP provide the City benefits over the county pool options, such as with a weighted average maturity more suitable for the City’s financial needs, and reporting is more timely for accounting.
97
Review of Investment Policy Page 2 The following excerpt of Council Policy F-1, Section G, Subsection 1. N. is recommended to be deleted. County Investment Funds: Los Angeles County provides a service similar to LAIF for
municipal and other government entities outside of Los Angeles County, including the
City. Investment in this pool is intended to be used as a temporary repository for short-term funds used for liquidity purposes. The Finance Director shall maintain on file appropriate information concerning the county pool’s current investment policies, practices, and performance, as well as its requirements for participation, including, but
not limited to, limitations on deposits or withdrawals and the composition of the portfolio.
At no time shall more than five percent (5%) of the City’s total investment portfolio be placed in this pool.
Prepared and Submitted by: /s/ Michael Gomez
_____________________________
Michael Gomez Deputy Finance Director
ATTACHMENT: Attachment A – Redline Council Policy F-1
98
ATTACHMENT A
REDLINE COUNCIL POLICY F-1
99
F-1
1
STATEMENT OF INVESTMENT POLICY
Purpose
The City Council has adopted this Investment Policy (the Policy) in order to establish the scope of the
investment policy, investment objectives, standards of care, authorized investments, investment parameters,
reporting, investment policy compliance and adoption, and the safekeeping and custody of assets.
This Policy is organized in the following sections:
A. Scope of Investment Policy
1. Pooling of Funds
2. Funds Included in the Policy
3. Funds Excluded from the Policy
B. Investment Objectives
1. Safety
2. Liquidity
3. Yield
C. Standards of Care
1. Prudence
2. Ethics and Conflicts of Interest
3. Delegation of Authority
4. Internal Controls
D. Banking Services
E. Broker/Dealers
F. Safekeeping and Custody of Assets
G. Authorized Investments
1. Investments Specifically Permitted
2. Investments Specifically Not Permitted
3. Exceptions to Prohibited and Restricted Investments
H. Investment Parameters
1. Diversification
2. Maximum Maturities
3. Credit Quality
4. Competitive Transactions
I. Portfolio Performance
J. Reporting
K. Investment Policy Compliance and Adoption
1. Compliance
2. Adoption
100
F-1
2
A. SCOPE OF INVESTMENT POLICY
1. Pooling of Funds
All cash shall be pooled for investment purposes. The investment income derived from the
pooled investment shall be allocated to the contributing funds, net of all banking and
investing expenses, based upon the proportion of the respective average balances relative to
the total pooled balance. Investment income shall be distributed to the individual funds not
less than annually.
2. Funds Included in the Policy
The provisions of this Policy shall apply to all financial assets of the City as accounted for
in the City’s Comprehensive Annual Financial Report, including;
a) General Fund
b) Special Revenue Funds
c) Capital Project Funds
d) Enterprise Funds
e) Internal Service Funds
f) Trust and Agency Funds
g) Permanent Endowment Funds
h) Any new fund created unless specifically exempted
If the City invests funds on behalf of another agency and, if that agency does not have its
own investment policy, this Policy shall govern the agency’s investments.
3. Funds Excluded from the Policy
Bond Proceeds – Investment of bond proceeds will be made in accordance with applicable
bond indentures.
B. INVESTMENT OBJECTIVES
The City’s funds shall be invested in accordance with all applicable City policies and codes, State
statutes, and Federal regulations, and in a manner designed to accomplish the following objectives,
which are listed in priority order:
1. Safety
Preservation of principal is the foremost objective of the investment program. Investments
of the City shall be undertaken in a manner that seeks to ensure the preservation of capital
in the overall portfolio. The objective shall be to mitigate credit risk and interest rate risk.
To attain this objective, the City shall diversify its investments by investing funds among
several financial institutions and a variety of securities offering independent returns.
a) Credit Risk
The City shall minimize credit risk, the risk of loss due to the failure of the security
issuer or backer, by:
101
F-1
3
Limiting investments in securities that have higher credit risks, pre-qualifying
the financial institutions, broker/dealers, intermediaries, and advisors with
which the City will do business
Diversifying the investment portfolio so as to minimize the impact any one
industry/investment class can have on the portfolio
b) Interest Rate Risk
To minimize the negative impact of material changes in the market value of securities
in the portfolio, the City shall:
Structure the investment portfolio so that securities mature concurrent with
cash needs to meet anticipated demands, thereby avoiding the need to sell
securities on the open market prior to maturity
Invest in securities of varying maturities
2. Liquidity
The City’s investment portfolio shall remain sufficiently liquid to enable the City to meet all
operating requirements which might be reasonably anticipated without requiring a sale of
securities. Since all possible cash demands cannot be anticipated, the portfolio should consist
largely of securities with active secondary or resale markets. A portion of the portfolio also
may be placed in money market mutual funds or LAIF which offer same-day liquidity for
short-term funds.
3. Yield
The City’s investment portfolio shall be designed with the objective of attaining a benchmark
rate of return throughout budgetary and economic cycles, commensurate with the City’s
investment risk constraints and the liquidity characteristics of the portfolio. Return on
investment is of secondary importance compared to the safety and liquidity objectives
described above. The core of investments is limited to relatively low risk securities in
anticipation of earning a fair return relative to the risk being assumed.
C. STANDARDS OF CARE
1. Prudence
The standard of prudence to be used for managing the City's investment program is
California Government Code Section 53600.3, the prudent investor standard, which states
that “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing
public funds, a trustee shall act with care, skill, prudence, and diligence under the
circumstances then prevailing, including, but not limited to, the general economic conditions
and the anticipated needs of the agency, that a prudent person acting in a like capacity and
familiarity with those matters would use in the conduct of funds of a like character and with
like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
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The City's overall investment program shall be designed and managed with a degree of
professionalism that is worthy of the public trust. The City recognizes that no investment is
totally without risk and that the investment activities of the City are a matter of public record.
Accordingly, the City recognizes that occasional measured losses may occur in a diversified
portfolio and shall be considered within the context of the overall portfolio's return, provided
that adequate diversification has been implemented and that the sale of a security is in the
best long-term interest of the City.
The Finance Director and authorized investment personnel acting in accordance with
established procedures and exercising due diligence shall be relieved of personal
responsibility for an individual security's credit risk or market price changes, provided that
deviations from expectations are reported in a timely fashion to the City Council and
appropriate action is taken to control adverse developments.
2. Ethics and Conflicts of Interest
Elected officials and employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the City’s investment
program or could impair or create the appearance of an impairment of their ability to make
impartial investment decisions. Employees and investment officials shall subordinate their
personal investment transactions to those of the City. In addition, City Council members, the
City Manager, and the Finance Director shall file a Statement of Economic Interests each
year as required by California Government Code Section 87203 and regulations of the Fair
Political Practices Commission.
3. Delegation of Authority
Authority to manage the City’s investment program is derived from the Charter of the City
of Newport Beach section 605 (j). The Finance Director shall assume the title of and act as
City Treasurer and with the approval of the City Manager appoint deputies annually as
necessary to act under the provisions of any law requiring or permitting action by the City
Treasurer. The Finance Director may then delegate the authority to conduct investment
transactions and to manage the operation of the investment portfolio to other specifically
authorized staff members. No person may engage in an investment transaction except as
expressly provided under the terms of this Policy.
The City may engage the support services of outside investment advisors with respect to its
investment program, so long as it can be demonstrated that these services produce a net
financial advantage or necessary financial protection of the City's financial resources. Such
companies must be registered under the Investment Advisors Act of 1940, be well-
established and exceptionally reputable. Members of the staff of such companies who will
have primary responsibility for managing the City’s investments must have a working
familiarity with the special requirements and constraints of investing municipal funds in
general and this City's funds in particular. These firms must insure that the portion of the
portfolio under their management complies with various concentration and other constraints
specified herein, and contractually agree to conform to all provisions of governing law and
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the collateralization and other requirements of this Policy. Selection and retention of
broker/dealers by investment advisors shall be at their sole discretion and dependent upon
selection and retention criteria as stated in the Uniform Application for Investment Advisor
Registration and related Amendments (SEC Form ADV 2A).
4. Internal Controls
The Finance Director is responsible for establishing and maintaining a system of internal
controls. The internal controls shall be designed to prevent losses of public funds arising
from fraud, employee error, and misrepresentation by third parties, unanticipated changes in
financial markets, or imprudent action by City employees and officers. The internal structure
shall be designed to provide reasonable assurance that these objectives are met. The concept
of reasonable assurance recognizes that (1) the cost of a control should not exceed the
benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates
and judgments by management.
D. BANKING SERVICES
Banking services for the City shall be provided by FDIC insured banks approved to provide
depository and other banking services. To be eligible, a bank shall qualify as a depository of public
funds in the State of California as defined in California Government Code Section 53630.5 and shall
secure deposits in excess of FDIC insurance coverage in accordance with California Government
Code Section 53652.
E. BROKER/DEALERS
In the event that an investment advisor is not used to purchase securities, the City will select
broker/dealers on the basis of their expertise in public cash management and their ability to provide
service to the City’s account.
Each approved broker/dealer must possess an authorizing certificate from the California
Commissioner of Corporations as required by Section 25210 of the California Corporations Code.
To be eligible, a firm must meet at least one of the following criteria:
1. Be recognized as Primary Dealers by the Federal Reserve Bank of New York or have a
primary dealer within their holding company structure, or
2. Report voluntarily to the Federal Reserve Bank of New York, or
3. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net
Capital Rule).
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F. SAFEKEEPING AND CUSTODY OF ASSETS
The Finance Director shall select one or more banks to provide safekeeping and custodial services
for the City. A Safekeeping Agreement approved by the City shall be executed with each custodian
bank prior to utilizing that bank's safekeeping services.
Custodian banks will be selected on the basis of their ability to provide services for the City's account
and the competitive pricing of their safekeeping related services.
The purchase and sale of securities and repurchase agreement transactions shall be settled on a
delivery versus payment basis. All securities shall be perfected in the name of the City. Sufficient
evidence to title shall be consistent with modern investment, banking and commercial practices.
All investment securities, except non-negotiable Certificates of Deposit, Money Market Funds and
local government investment pools, purchased by the City will
be delivered by book entry and will be held in third-party safekeeping by a City approved custodian
bank, its correspondent bank or its Depository Trust Company (DTC) participant account.
All Fed wireable book entry securities owned by the City shall be held in the Federal Reserve system
in a customer account for the custodian bank which will name the City as “customer.”
All DTC eligible securities shall be held in the custodian bank’s DTC participant account and the
custodian bank shall provide evidence that the securities are held for the City as “customer.”
G. AUTHORIZED INVESTMENTS
All investments and deposits of the City shall be made in accordance with California Government
Code Sections 16429.1, 53600-53609 and 53630-53686. Any revisions or extensions of these code
sections will be assumed to be part of this Policy immediately upon being enacted. The City has
further restricted the eligible types of securities and transactions. The foregoing list of authorized
securities and transactions shall be strictly interpreted. Any deviation from this list must be pre-
approved by resolution of the City Council. In the event an apparent discrepancy is found between
this Policy and the Government Code, the more restrictive parameter(s) will take precedence.
Where this section specifies a percentage limitation or minimum credit rating for a particular
security type, that percentage or credit rating minimum is applicable only at the date of purchase.
1. Investments Specifically Permitted
a) United States Treasury bills, notes, or bonds with a final maturity not exceeding five
years from the date of trade settlement. There is no limitation as to the percentage of
the City’s portfolio that may be invested in this category.
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b) Federal Instrumentality (government-sponsored enterprise) debentures, discount
notes, callable and step-up securities, with a final maturity not exceeding five years
from the date of trade settlement. There is no limitation as to the percentage of the
portfolio that can be invested in this category. No more than thirty percent (30%) of
the portfolio may be invested in any single Federal Instrumentality/GSE issuer. The
maximum percentage of callable Federal Instrumentality/GSE securities in the
portfolio will be twenty percent (20%.)
c) Federal Agency Obligations for which the full faith and credit of the United States
are pledged for the payment of principal and interest and which have a final maturity
not exceeding five years from the date of trade settlement. There is no limitation as
to the percentage of the portfolio that can be invested in this category.
d) Mortgage-backed Securities, Collateralized Mortgage Obligation (CMO) and Asset-
backed Securities from issuers not defined sections a, b and c of the Investments
Specifically Permitted section of this investment policy are limited to bonds with a
final maturity not exceeding five years from the date of trade settlement. The security
itself shall be rated at least “AAA” or the equivalent by an NRSRO. No more than
five percent (5%) of the City’s total portfolio shall be invested in any one issuer of
mortgage-backed and asset-backed securities listed above, and the aggregate
investment in mortgage-backed and asset-backed securities shall not exceed twenty
percent (20%) of the City’s total portfolio.
e) Medium-Term Notes issued by corporations organized and operating within the
United States or by depository institutions licensed by the United States or any state
and operating within the United States, with a final maturity not exceeding five years
from the date of trade settlement, and rated in at least the “A” category or the
equivalent by an NRSRO. No more than five percent (5%) of the City’s total portfolio
shall be invested in any one issuer of medium- term notes, and the aggregate
investment in medium-term notes shall not exceed thirty percent (30%) of the City’s
total portfolio.
f) Municipal Bonds including bonds issued by the City of Newport Beach, including
bonds payable solely out of the revenues from a revenue-producing property owned,
controlled, or operated by the City or by a department, board, agency, or authority of
the City.
State of California registered warrants or treasury notes or bonds, including bonds
payable solely out of the revenues from a revenue- producing property owned,
controlled, or operated by the state or by a department, board, agency, or authority
of the state.
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Registered treasury notes or bonds of any of the other 49 states in addition to
California, including bonds payable solely out of the revenues from a revenue
producing property owned, controlled, or operated by a state or by a department,
board, agency, or authority of any of the other 49 states, in addition to California.
Bonds, notes, warrants, or other evidences of indebtedness of a local agency within
California, including bonds payable solely out of the revenues from a revenue-
producing property owned, controlled, or operated by the local agency, or by a
department, board, agency, or authority of the local agency.
In addition, these securities must be rated in at least the “A” category or the
equivalent by a NRSRO with maturities not exceeding five years from the date of
trade settlement. No more than five percent (5%) of the City’s total portfolio shall be
invested in any one municipal issuer. In addition, the aggregate investment in
municipal bonds may not exceed thirty percent (30%) of the portfolio.
g) Non-negotiable Certificates of Deposit and savings deposits with a maturity not
exceeding two years from the date of trade settlement, in FDIC insured state or
nationally chartered banks or savings banks that qualify as a depository of public
funds in the State of California as defined in California Government Code Section
53630.5. Deposits exceeding the FDIC insured amount shall be secured pursuant to
California Government Code Section 53652. No one issuer shall exceed more than
five percent (5%) of the portfolio, and investment in negotiable and nonnegotiable
certificates of deposit shall be limited to thirty percent (30%) of the portfolio
combined.
h) Negotiable Certificates of Deposit only with a nationally or state- chartered bank, a
savings association or a federal association (as defined by Section 5102 of the
Financial Code), a state or federal credit union, or by a federally licensed or state-
licensed branch of a foreign bank whose senior long-term debt is rated in at least the
“A” category, or the equivalent, or short-term debt is rated at least “A-1” or the
equivalent by an NRSRO and having assets in excess of $10 billion, so as to ensure
security and a large, well-established secondary market. Ease of subsequent
marketability should be further ascertained prior to initial investment by examining
currently quoted bids by primary dealers and the acceptability of the issuer by these
dealers. No one issuer shall exceed more than five percent (5%) of the portfolio, and
maturity shall not exceed two years. Investment in negotiable and non- negotiable
certificates of deposit shall be limited to thirty percent (30%) of the portfolio
combined.
i) Prime Commercial Paper with a maturity not exceeding 270 days from the date of
trade settlement that is rated “A-1”, or the equivalent, by an NRSRO. The entity that
issues the commercial paper shall meet all of the following conditions in either
sub- paragraph i. or sub-paragraph ii. below:
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i. The entity shall (1) be organized and operating in the United States as a
general corporation, (2) have total assets in excess of $500,000,000 and (3)
have debt other than commercial paper, if any, that is rated in at least the “A”
category or the equivalent by an NRSRO.
ii. The entity shall (1) be organized within the United States as a special purpose
corporation, trust, or limited liability company, (2) have program wide credit
enhancements, including, but not limited to, over collateralization, letters of
credit or surety bond and (3) have commercial paper that is rated at least “A-
1” or the equivalent, by an NRSRO.
iii. No more than five percent (5%) of the City’s total portfolio shall be invested
in the commercial paper of any one issuer, and the aggregate investment in
commercial paper shall not exceed twenty-five percent (25%) of the City’s
total portfolio. Under a provision sunsetting on January 1, 2026, no more than
forty percent (40%) of the portfolio may be invested in commercial paper if
the City’s assets under management are greater than $100,000,000.
j) Eligible Banker’s Acceptances with a maturity not exceeding 180 days from the date
of trade settlement, drawn on and accepted by a commercial bank whose senior long-
term debt is rated in at least the “A” category or the equivalent by an NRSRO at the
time of purchase. Banker’s Acceptances shall be rated at least “A-1”, or the
equivalent at the time of purchase by an NRSRO. If the bank has senior debt
outstanding, it must be rated in at least the “A” category or the equivalent by an
NRSRO. The aggregate investment in banker’s acceptances shall not exceed forty
percent (40%) of the City’s total portfolio, and no more than five percent (5%) of the
City’s total portfolio shall be invested in banker’s acceptances of any one bank.
k) Repurchase Agreements and Reverse Repurchase Agreements with a final
termination date not exceeding 30 days collateralized by U.S. Treasury obligations
or Federal Instrumentality securities listed in items 1 and 2 above with the maturity
of the collateral not exceeding ten years. For the purpose of this section, the term
collateral shall mean purchased securities under the terms of the City’s approved
Master Repurchase Agreement. The purchased securities shall have a minimum
market value including accrued interest of one hundred and two percent (102%) of
the dollar value of the funds borrowed. Collateral shall be held in the City's custodian
bank, as safekeeping agent, and the market value of the collateral securities shall be
marked-to-the-market daily.
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Repurchase Agreements and Reverse Repurchase Agreements shall be entered into
only with broker/dealers and who are recognized as Primary Dealers with the Federal
Reserve Bank of New York, or with firms that have a Primary Dealer within their
holding company structure. Primary Dealers approved as Repurchase Agreement
counterparties shall have a short-term credit rating of at least “A-1” or the equivalent
and a long-term credit rating of at least “A” or the equivalent. Repurchase agreement
counterparties shall execute a City approved Master Repurchase Agreement with the
City. The Finance Director shall maintain a copy of the City's approved Master
Repurchase Agreement and a list of the broker/dealers who have executed same.
In addition, the City must own assets for more than 30 days before they can be used
as collateral for a reverse repurchase agreement. No more than ten percent (10%) of
the portfolio can be involved in reverse repurchase agreements.
l) State of California’s Local Agency Investment Fund (LAIF), pursuant to California
Government Code Section 16429.1.
m) California Asset Management Trust Cash Reserve Portfolio (CAMP): Investments
in CAMP shall not exceed the same maximum limit established for LAIF.
n) County Investment Funds: Los Angeles County provides a service similar to LAIF
for municipal and other government entities outside of Los Angeles County,
including the City. Investment in this pool is intended to be used as a temporary
repository for short-term funds used for liquidity purposes. The Finance Director
shall maintain on file appropriate information concerning the county pool’s current
investment policies, practices, and performance, as well as its requirements for
participation, including, but not limited to, limitations on deposits or withdrawals
and the composition of the portfolio. At no time shall more than five percent (5%) of
the City’s total investment portfolio be placed in this pool.
o) Mutual Funds and Money Market Mutual Funds registered under the Investment
Company Act of 1940, provided that:
i. MUTUAL FUNDS that invest in the securities and obligations as authorized
under California Government Code, Section 53601 (a) to (k) and (m) to (q)
inclusive and that meet either of the following criteria:
1) Attained the highest ranking or the highest letter and numerical rating
provided by not less than two (2) NRSROs; or
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2) Have retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not
less than five years’ experience investing in the securities and
obligations authorized by California Government Code, Section
53601 and with assets under management in excess of $500 million.
3) No more than 10% of the total portfolio may be invested in shares of
any one mutual fund.
ii. MONEY MARKET MUTUAL FUNDS registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 and
issued by diversified management companies and meet either of the
following criteria:
1) Have attained the highest ranking or the highest letter and numerical
rating provided by not less than two (2) NRSROs; or
2) Have retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not
less than five years’ experience managing money market mutual
funds with assets under management in excess of $500 million.
3) No more than 20% of the total portfolio may be invested in Money
Market Mutual Funds.
iii. No more than 20% of the total portfolio may be invested in these securities.
p) Supranationals which are United States dollar denominated senior unsecured
unsubordinated obligations issued or unconditionally guaranteed by the International
Bank for Reconstruction and Development (IBRD), International Finance
Corporation (IFC), or Inter-American Development Bank (IADB), with a maximum
remaining maturity of five years or less from the date of trade settlement, and eligible
for purchase and sale within the United States. Investments under this paragraph shall
be rated in the "AA" category, its equivalent, or better by at least one NRSRO.
No more than ten percent (10%) of the City’s total portfolio shall be invested in any
one issuer of supranational obligations. Purchases of supranational obligations shall
not exceed twenty percent (20%) of the investment portfolio of the City.
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2. Investments Specifically Not Permitted
Any security type or structure not specifically approved by this policy is hereby prohibited.
Security types, which are thereby prohibited include, but are not limited to: “exotic”
derivative structures such as range notes, dual index notes, inverse floating rate notes,
leveraged or de-leveraged floating rate notes, interest only strips that are derived from a pool
of mortgages and any security that could result in zero interest accrual if held to maturity, or
any other complex variable or structured note with an unusually high degree of volatility
risk.
Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government
that could result in a zero or negative interest accrual if held to maturity are permitted.
The City shall not invest funds with the Orange County Pool.
The purchase of a security with a forward settlement date exceeding 45 days from the time
of the investment is prohibited.
3. Exceptions to Prohibited and Restricted Investments
The City shall not be required to sell securities prohibited or restricted in this policy, or any
future policies, or prohibited or restricted by new State regulations, if purchased prior to their
prohibition and/or restriction. Insofar as these securities provided no notable credit risk to
the City, holding of these securities until maturity is approved. At maturity or liquidation,
such monies shall be reinvested as provided by this policy.
H. INVESTMENT PARAMETERS
1. Diversification
The City shall diversify its investments to avoid incurring unreasonable risks inherent in
over-investing in specific instruments, individual financial institutions or maturities. As
such, no more than five percent (5%) of the City’s portfolio may be invested in the
instruments of any one issuer, except governmental issuers, supranationals, investment
pools, mutual funds and money market funds, or unless otherwise specified in this
investment policy. This restriction does not apply to any type of Federal Instrumentality or
Federal Agency Security listed in Sections G1 b and G1 c above. Nevertheless, the asset
allocation in the investment portfolio should be flexible depending upon the outlook for the
economy, the securities markets and the City’s anticipated cash flow needs.
2. Maximum Maturities
To the extent possible, investments shall be matched with anticipated cash flow requirements
and known future liabilities. The City will not invest in securities maturing more than five
years from the date of trade settlement, unless the City Council has by resolution granted
authority to make such an investment at least three months prior to the date of investment.
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3. Credit Quality
Each investment manager will monitor the credit quality of the securities in their respective
portfolio. In the event a security held by the City is downgraded to a level below the
requirements of this policy, making the security ineligible for additional purchases, the
following steps will be taken:
Any actions taken related to the downgrade by the investment manager will be
communicated to the Finance Director in a timely manner.
If a decision is made to retain the security, the credit quality will be monitored and
reported to the City Council.
4. Competitive Transactions
Investment advisors shall make best effort to price investment transactions on a competitive
basis with broker/dealers selected consistent with their practices disclosed in form ADV 2A
filed with the SEC. Where possible, at least three broker/dealers shall be contacted for each
transaction and their bid or offering prices shall be recorded. If there is no other readily
available competitive offering, the investment advisor shall make their best efforts to
document quotations for comparable or alternative securities. If qualitative characteristics of
a transaction, including, but not limited to, complexity of the transaction, or sector expertise
of the broker, prevent a competitive selection process, investment advisors shall use
brokerage selection practices as described above.
I. PORTFOLIO PERFORMANCE
The investment portfolio shall be designed to attain a market rate of return throughout budgetary
and economic cycles, taking into account prevailing market conditions, risk constraints for eligible
securities, and cash flow requirements. The performance of the City’s investments shall be
compared to the total return of a benchmark that most closely corresponds to the portfolio’s duration,
universe of allowable securities, risk profile, and other relevant characteristics. When comparing
the performance of the City’s portfolio, its rate of return will be computed consistent with Global
Investment Performance Standards (GIPS).
J. REPORTING
Monthly, the Finance Director shall produce a treasury report of the investment portfolio balances,
transactions, risk characteristics, earnings, and performance results of the City’s investment
portfolio available to City Council and the public on the City’s Website. The report shall include
the following information:
1. Investment type, issuer, date of maturity, par value and dollar amount invested in all
securities, and investments and monies held by the City;
2. A description of the funds, investments and programs;
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3. A market value as of the date of the report (or the most recent valuation as to assets not
valued monthly) and the source of the valuation;
4. A statement of compliance with this Policy or an explanation for non-compliance
K. INVESTMENT POLICY COMPLIANCE AND ADOPTION
1. Compliance
Any deviation from the policy shall be reported to Finance Committee as soon as practical,
but no later than the next scheduled Finance Committee meeting. Upon recommendation of
the Finance Committee, the Finance Director shall review deviations from policy with the
City Council.
2. Adoption
The Finance Director shall review the Investment Policy with the Finance Committee at least
annually to ensure its consistency with the overall
objectives of preservation of principal, liquidity and return, and its relevance to current law
and financial and economic trends.
The Finance Director shall review the Investment Policy with City Council at a public
meeting if there are changes recommended to the Investment Policy.
This Policy was endorsed and adopted by the City Council of the City of Newport Beach on
September 28, 2021. It replaces any previous investment policy or investment procedures of
the City.
History
Adopted F-1 – 4-6-1959
Reaffirmed F-1 – 8-15-1966
Reaffirmed F-1 – 11-12-1968
Reaffirmed F-1 – 3-9-1970
Amended F-1 – 11-9-1970
Reaffirmed F-1 – 2-8-1971
Reaffirmed F-1 – 2-14-1972
Reaffirmed F-1 – 12-10-1973
Amended F-1 – 2-11-1974
Amended F-1 –2-9-1981
Amended F-1 –10-27-1986
Rewritten F-1 – 10-22-1990
Amended F-1 – 1-28-1991
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Amended F-1 – 1-24-1994
Amended F-1 – 1-9-1995
Amended F-1 – 4-22-1996
Corrected F-1 – 1-27-1997
Amended F-1 – 2-24-1997
Amended F-1 – 5-26-1998
Reaffirmed F-1 – 3-22-1999
Reaffirmed F-1 – 3-14-2000
Amended and Reaffirmed F-1 – 5-8-2001
Amended and Reaffirmed F-1 – 4-23-2002
Amended and Reaffirmed F-1 – 4-8-2003
Amended and Reaffirmed F-1 – 4-13-2004
Amended and Reaffirmed F-1 – 9-13-2005
Amended F-1 – 8-11-2009
Amended and Reaffirmed F-1 – 8-10-2010
Amended and Reaffirmed F-1 – 9-28-2010
Reaffirmed F-1 – 6-28-2011
Amended and Reaffirmed F-1 – 10-9-2012
Amended F-1 – 8-13-2013
Amended F-1 – 9-8-2015
Amended F-1 – 3-28-2017
Amended F-1 – 1-28-2020
Amended F-1 – 9-28-2021
Amended F-1 – 10-10-2023
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GLOSSARY OF INVESTMENT TERMS
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity
(GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full
faith and credit of the US government. Examples are:
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural
industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB
issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and
liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes,
bonds and mortgage pass-through securities.
FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established
to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,”
issues discount notes, bonds and mortgage pass-through securities.
GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues
mortgage pass-through securities, which are guaranteed by the full faith and credit of the
US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not
guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes development
in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues
discount notes and bonds.
ASKED. The price at which a seller offers to sell a security.
ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools
of revolving lines of credit.
AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt
of principal payments, weighted by the amount of principal expected.
BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade
transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the
bank which “accepts” the obligation to pay the investor.
BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index,
which reflects the mix of securities allowed under a specific investment policy.
BID. The price at which a buyer offers to buy a security.
BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a
commission. A broker does not sell securities from his own position.
CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity.
The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues
securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable
securities have reinvestment risk as the investor may receive its principal back when interest rates
are lower than when the investment was initially made.
CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.
Large denomination CDs may be marketable.
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CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement
service that allows local agencies to purchase more than $250,000 in CDs from a single financial
institution (must be a participating institution of CDARS) while still maintaining FDIC insurance
coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading
of deposits between the California institution and other participating institutions in amounts that are
less than $250,000 each, so that FDIC coverage is maintained.
COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase
agreement. Also, securities pledged by a financial institution to secure deposits of public monies.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the
cash flows of mortgage securities (and whole loans) to create securities that have different levels of
prepayment risk, as compared to the underlying mortgage securities.
COMMERCIAL PAPER. The short-term unsecured debt of corporations.
COST YIELD. The annual income from an investment divided by the purchase cost. Because it does not
give effect to premiums and discounts which may have been included in the purchase cost, it is an
incomplete measure of return.
COUPON. The rate of return at which interest is paid on a bond.
CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner
due to changes in the condition of the issuer.
CURRENT YIELD. The annual income from an investment divided by the current market value. Since
the mathematical calculation relies on the current market value rather than the investor’s cost,
current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities
for his own position.
DEBENTURE. A bond secured only by the general credit of the issuer.
DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security
must be made at the time the security is delivered to the purchaser’s agent.
DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty
(but not for reasons of default or credit risk) as to timing and/or amount, or any security which
represents a component of another security which has been separated from other components
(“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value
of which is totally or partially derived from the value of another instrument, interest rate, or index.
DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is
below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as
discount securities. They sell at a discount from par, and return the par value to the investor at
maturity without additional interest. Other securities, which have fixed coupons, trade at a discount
when the coupon rate is lower than the current market rate for securities of that maturity and/or
quality.
DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive
exposure to any one source of risk.
DURATION. The weighted average time to maturity of a bond where the weights are the present values
of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest
rates. (See Modified Duration).
FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The
Federal Reserve Bank through open-market operations establishes it.
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FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes
monetary policy and executes it through temporary and permanent changes to the supply of bank
reserves.
LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a
rate higher than the cost of borrowing.
LIQUIDITY. The speed and ease with which an asset can be converted to cash.
LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government
entities and certain non-profit organizations in California that is managed by the State Treasurer’s
Office.
LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State
Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers
Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market
mutual funds.
MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining
debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum
payment that equals the net present value (NPV) of future coupon payments that will not be paid
because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that
security as collateral.
MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market
conditions or interest rates.
MARKET VALUE. The price at which a security can be traded.
MARKING TO MARKET. The process of posting current market values for securities in a portfolio.
MATURITY. The final date upon which the principal of a security becomes due and payable.
MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations
which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are
highly flexible debt instruments that can be structured to respond to market opportunities or to
investor preferences.
MODIFIED DURATION. The percent change in price for a 100 basis point change in yields. Modified
duration is the best single measure of a portfolio’s or security’s exposure to market risk.
MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes,
commercial paper, and banker’s acceptances) are issued and traded.
MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal
cash flows from a specified pool of mortgages. Principal and interest payments made on the
mortgages are passed through to the holder of the security.
MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating
expenses.
MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities
which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types
of domestic and/or international stocks, bonds, and money market instruments, as set forth in the
individual fund’s prospectus. For most large, institutional investors, the costs associated with
investing in mutual funds are higher than the investor can obtain through an individually managed
portfolio.
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NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit
rating agency that the Securities and Exchange Commission in the United States uses for regulatory
purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of
investments, especially debt securities, pay credit rating agencies to provide them with ratings. The
three most prominent NRSROs are Fitch, S&P, and Moody's.
NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings or
federal association, state or federal credit union, or state-licensed branch of a foreign bank.
Negotiable CDs are traded in a secondary market.
PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is
above par.
PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities.
PREPAYMENT WINDOW. The time period over which principal repayments will be received on
mortgage securities at a specified prepayment speed.
PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in
its execution of market operations to carry out U.S. monetary policy, and (2) that participates for
statistical reporting purposes in compiling data on activity in the U.S. Government securities market.
PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to
fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill,
prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a
like capacity and familiar with such matters, would use in the conduct of an enterprise of like
character and with like aims to accomplish similar purposes.”
REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and
realized gains and losses. It does not give effect to changes in market value on securities, which
have not been sold from the portfolio.
REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its
customers without maintaining substantial inventories of securities and that is not a primary dealer.
REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell
the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse
repurchase agreement.
SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s
name.
STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula
tied to other interest rates, commodities or indices. Examples include inverse floating rate notes
which have coupons that increase when other interest rates are falling, and which fall when other
interest rates are rising, and "dual index floaters," which pay interest based on the relationship
between two other interest rates - for example, the yield on the ten-year Treasury note minus the
Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap
agreements.
SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend
national boundaries or interests to share in the decision making to promote economic development
in the member countries.
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TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of
return, which equates the beginning value of the portfolio with the ending value; it includes interest
earnings, realized and unrealized gains, and losses in the portfolio.
U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith
and credit of the United States. Treasuries are considered to have no credit risk, and are the
benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both
discounted securities and fixed coupon notes and bonds.
TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted
instruments, and are called Treasury bills. The Treasury currently issues three- and six-month T-
bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash
flows.
TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury
notes, and pay interest semi-annually.
TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury
bonds. Like Treasury notes, they pay interest semi-annually.
VOLATILITY. The rate at which security prices change with changes in general economic conditions or
the general level of interest rates.
YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the
expected cash flows from the investment to its cost.
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Scheduled Date Agenda Title Report Type Agenda Description
Thursday, April 11, 2024
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.
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.
August 2024
Committee Recess
Newport Beach Finance Committee Work Plan
April 2024
June 2024
Committee Recess
Committee Recess
July 2024
May 2024
September 2024
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2/6/24
Scheduled Date Agenda Title Report Type Agenda Description
Newport Beach Finance Committee Work Plan
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.
October 2024
November 2024
December 2024
Committee Recess
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