HomeMy WebLinkAboutFinance Committee Agenda Packet - May 30, 2024CITY OF NEWPORT BEACH
FINANCE COMMITTEE AGENDA
Community Room - 100 Civic Center Drive, Newport Beach, CA 92660
Thursday, May 30, 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
Shelby Burguan, Acting Deputy Finance Director
Brittany Cleberg, Assistant Management Analyst
NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT
Any presentation requiring the use of the City of Newport Beach’s equipment must be submitted to the Finance
Director/Treasurer 24 hours prior to the scheduled Finance Committee meeting.
NOTICE REGARDING PUBLIC PARTICIPATION
Questions and comments may also be submitted in writing for the Finance Committee’s consideration by sending them
to Jason Al-Imam, Finance Director/Treasurer, at jalimam@newportbeachca.gov. To give the Finance Committee
adequate time to review your questions and comments, please submit your written comments by no later than 5 p.m.
the day prior to the Finance Committee meeting. All correspondence will be made part of the record.
NOTICE TO THE PUBLIC
The Finance Committee meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that
their agenda be posted at least twenty-four (24) hours in advance of each special meeting and that the public be allowed
to comment on agenda items before the Committee and items not on the agenda but are within the subject matter
jurisdiction of the Finance Committee. The Chair may limit public comments to a reasonable amount of time, generally
three (3) minutes per person.
It is the intention of the City of Newport Beach to comply with the Americans with Disabilities Act (“ADA”) in all respects.
If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, the
City of Newport Beach will attempt to accommodate you in every reasonable manner. If requested, this agenda will be
made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the
Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in
implementation thereof. Please contact the City Clerk’s Office at least forty-eight (48) hours prior to the meeting to
inform us of your particular needs and to determine if accommodation is feasible at (949) 644-3127 or
jalimam@newportbeachca.gov.
I.CALL MEETING TO ORDER
II.ROLL CALL
III PLEDGE OF ALLEGIANCE
IV PUBLIC COMMENTS
Public comments are invited on agenda and non-agenda items generally considered to be
within the subject matter jurisdiction of the Finance Committee. Speakers must limit comments
to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for
the record. The Finance Committee has the discretion to extend or shorten the speakers’ time
limit on agenda or non-agenda items, provided the time limit adjustment is applied equally to all
speakers. As a courtesy, please turn cell phones off or set them in the silent mode.1
May 30, 2024
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Finance Committee Meeting
ADDITIONAL MATERIALS RECEIVEDA.
PUBLIC COMMENTS - ADDITIONAL MATERIALS RECEIVED
V CONSENT CALENDAR
MINUTES OF MAY 9, 2024A
Recommended Action:
Approve and file.
MINUTES
VI CURRENT BUSINESS
FINANCIAL STATEMENT AUDITOR’S COMMUNICATION WITH THE FINANCE
COMMITTEE ACTING AS THE CITY’S AUDIT COMMITTEE
A
Summary:
Marc Davis, partner with Davis Farr LLP will discuss with the Audit Committee the
planned scope and timing of the audit for the Fiscal Year Ending June 30, 2024.
Recommended Action:
Receive and file.
PRESENTATION
FINANCE COMMITTEE RECOMMENDATION TO THE CITY COUNCIL FOR
THE FISCAL YEAR 2024-25 OPERATING BUDGET
B
Summary:
The Finance Committee reviewed in detail the City Manager’s Proposed Operating Budget
for Fiscal Year 2024-25 and held multiple meetings to discuss the budget in advance of
the joint Study Session with the City Council on May 28, 2024. Pursuant to City Council
Policy F-3 and City Council Resolution No. 2018-71, the Finance Committee is
responsible for reviewing and recommending that the City Council consider approval of
the Proposed Operating Budget after the joint meeting.
Recommended Action:
Make final recommendations to the City Council concerning the City Manager’s Fiscal
Year 2024-25 Proposed Budget.
STAFF PRESENTATION - ADDITIONAL MATERIALS RECEIVED
WORK PLAN REVIEWC
Summary:
Staff and Finance Committee to review the proposed work plan and identify matters that
members would like placed on a future Agenda for discussion, action, or report.
Recommended Action:
Receive and file.
WORK PLAN
VII ADJOURNMENT
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May 30, 2024
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Finance Committee Meeting
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ITEM NO. 4A1 PUBLIC COMMENTS
ATTACHMENT A
PUBLIC COMMENTS – ADDITIONAL MATERIALS RECEIVED
4
May 30,2024,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.IV.PUBLIC COMMENTS
From the minutes it looks like I commented on May 9 about what seemed to me the less
informative new format of the Schedule of Rents,Fines and Fees adopted by Council
Resolution No.2024-29 on April 23,and going into effect on July 1.It omits,among other things,
most of the references (found in the previous format used through Resolution No.2023-30)to
the ordinances,resolutions or other authority on which specific fees are based.I believe I may
have also mentioned some minor errors such as the annual residential pier rent being listed as
$0.55/sf when the currently-posted SRFF,which seems to have been updated since Resolution
No.2023-30,shows it at $0.56/sf,reflecting a 2%increase that went into effect earlier in the
year and (especially considering the already large disparity between pier and mooring rents)
was not intended to be rolled back.
I have since noticed there is an entire list of commercial tidelands rents that seem never to have
made it into the SRFF.They can be found on the City’s Commercial Tidelands Permits and
Leases page (but not in the SRFF).I am guessing their omission is unintentional.
Item No.V.A.MINUTES OF MAY 9,2024
Page 3 of 6 (agenda packet page 5),first full paragraph:“Chair O’Neill also requested
clarification on large deviations in funds across Fiscal Years on the following three two items as
referenced in the “Department Revenue Overview –All Funds”page (Page 22)in the
public agenda packet:1.Intergovernmental Revenues:Cause of increase to $31 million in
FY 2023-24 and decrease back to $17 million in proposed FY 2024-25 budget;2.
Non-Operating Source:Cause of fund fluctuations,particularly as related to FY 24 revised
amount of $30 million,and 3 2.Transfers:Cause of change from FY 24 adopted amount of
approximately $59 million to approximately $103 million in FY 24 revised.He requested
clarification at the next meeting and prior to consideration of this item by the City Council.”[The
deleted material repeats the previous paragraph,so there are only two “also requested”items.]
Page 5 of 6 (agenda packet page 7),last full paragraph,sentence 2:“Acting Deputy Finance
Director Burguan continued stating that other general fund revenues are projected to exceed
budget by $0.2 million with service Fees and Charges projected to come in $0.8 million lower
than projected at the second quarter due to lower volumes of plan check fees and investment
earning projected to exceed budgeted amounts by $1 million.”
Page 6 of 6 (agenda packet page 8),Item D,paragraph 1:“A summary of items scheduled for
upcoming Finance Committee meetings was provided as listed in the publicly noticed agenda
report,including an upcoming joint meetings meeting with the City Council for budget review.”
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Finance Committee Regular Meeting Minutes
May 9, 2024
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CITY OF NEWPORT BEACH
FINANCE COMMITTEE
MAY 9, 2024 REGULAR MEETING MINUTES
I. CALL MEETING TO ORDER
The meeting was called to order at 3:03 p.m. by Mayor O’Neill.
II. ROLL CALL
PRESENT: Will O’Neill, Mayor/Chair
Joe Stapleton, Mayor Pro Tem
Allen Cashion, Committee Member
William Collopy, Committee Member
Keith Curry, Committee Member
Nancy Scarbrough, Committee Member
ABSENT: Noah Blom, Councilmember
STAFF PRESENT: Grace K. Leung, City Manager
Jason Al-Imam, Finance Director/Treasurer
Shelby Burguan, Acting Deputy Finance Director
Brittany Cleberg, Assistant Management Analyst
Steven Anderson, Department Assistant
Jonathan Stafford, Deputy Director, Newport Beach Police
Dave Webb, Public Works Director
Theresa Schweitzer, Public Works Finance Administrative Manager
Jessica Kan, Revenue Manager
Trevor Power, Accounting Manager
Jessica Nguyen, Budget Analyst
Abigail Marin, Budget Analyst
Anthony Alannouf, Budget Analyst
Jennifer Anderson, Purchasing & Contracts Administrator
Raymund Reyes, Fire Administrative Manager
Mark Vukojevic, Utilities Director
MEMBERS OF THE
PUBLIC: Jim Mosher
Charles Klobe
Chuck Fancher
III. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Committee Member Cashion.
IV. PUBLIC COMMENTS
A. ADDITIONAL MATERIALS RECEIVED
Mayor/Chair O’Neill opened public comments.
Jim Mosher commented that the new format for rents, fines, and fees is less informative and that
there may be continuing errors in the calculations for related CPI adjustments.
Seeing no others, Chair O’Neill closed public comments.
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V. CONSENT CALENDAR
A. MINUTES OF APRIL 11, 2024
Recommended Action:
Approve and file.
Chair O’Neill clarified that various submitted modifications to the minutes, as proposed and
included in the agenda packet, would be incorporated into the final document, including
changing language from “negative” to “down,” as confirmed by Finance Director/Treasurer Al-
Imam and the changes submitted by Mr. Mosher.
MOTION: Chair O’Neill moved to approve the minutes of April 11, 2024, seconded by
Committee Member Curry. The motion carried as follows:
AYES: Cashion, Collopy, Curry, Scarbrough, Stapleton, O’Neill
NOES: None
ABSENT: Blom
ABSTAIN: None
VI. CURRENT BUSINESS
A. PROPOSED FISCAL YEAR 2024-25 BUDGET REVISIONS
Recommended Action: Review and discuss the proposed budget and provide any
recommendations for consideration by the City Manager and City Council.
Acting Deputy Finance Director Shelby Burguan and Finance Director/Treasurer Jason Al-
Imam provided a summary and presentation of the proposed Fiscal Year 2024-25 budget
revisions.
Acting Deputy Finance Director Burguan noted the TOT revenue pages now featured gross
revenue as requested by the Committee and the Fund Balance overview was revised to show
updated beginning spendable balances for the Water & Wastewater funds, and a correction
was made to the budget number for the Tidelands Fund. Each year, after the proposed budget
book is distributed, there are various revisions which are also presented for the Committee’s
consideration. The first of these revisions is the transfer of one full-time Department Assistant
from the City Clerk’s office to the City Manager’s office and reclassification to an Administrative
Assistant, resulting in an increase of $6,681 in projected General Fund expenditures.
Finance Director/Treasurer Al-Imam detailed the second revision which proposes the migration
of utility billing from a bi-monthly (every two months) process to a monthly process, resulting in
$81,600 in one-time costs for the reconfiguration of the billing setup to accommodate monthly,
$51,200 to convert one part-time Senior Fiscal Clerk position into a full-time classification
resulting in an increase of 0.3 full-time equivalents (FTEs), and $79,600 in additional ongoing
operating costs related to postage and bill presentment. Utilities Director Mark Vukojevic
provided additional detail on the benefits of monthly billing, including that it has been a
Department goal for several years and that monthly billing decreases the amount of time
between usage and when charges appear on a bill, which is expected to aid in leak detection.
Discussion ensued between Committee Members Collopy and Scarbrough and Finance
Director/Treasurer Al-Imam, noting that while monthly billing may improve customer service
and aid in leak detection, there will be an increase in overall operating costs. Nonetheless, the
Finance Committee was not opposed to the proposed transition to monthly billing for utilities.
Chair O’Neill requested clarification on large deviations between the 2023-24 revised budget
and the Fiscal Year 2024-25 proposed budget (referencing the “Department Revenue
Overview – All Funds” page 22 in the agenda packet), including the increase in the
intergovernmental revenues. He requested information on what decisions the City Council may
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Finance Committee Regular Meeting Minutes
May 9, 2024
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have made during the current fiscal year which modified the intergovernmental revenues up to
$31 million and why it decreased back down to $17 million in the proposed FY 2024-25 budget.
Finance Director/Treasurer Al-Imam responded that it was likely grant-related, however, he
would provide additional detail to the Committee.
Chair O’Neill also requested clarification on large deviations in funds across Fiscal Years on
the following three items as referenced in the “Department Revenue Overview – All Funds”
page (Page 22) in the public agenda packet: 1. Intergovernmental Revenues: Cause of
increase to $31 million in FY 2023-24 and decrease back to $17 million in proposed FY 2024-
25 budget; 2. Non-Operating Source: Cause of fund fluctuations, particularly as related to FY
24 revised amount of $30 million, and 3. Transfers: Cause of change from FY 24 adopted
amount of approximately $59 million to approximately $103 million in FY 24 revised. He
requested clarification at the next meeting and prior to consideration of this item by the City
Council.
Committee Member Scarbrough requested clarification concerning the proposed change of the
City Clerk’s Office Department Assistant to City Manager’s Office Administrative Assistant. City
Manager Grace Leung responded that the incumbent in the current position retired, and the
proposed change was made in the interest of customer service, as the position could also
provide assistance in the City Manager’s Office. To effectuate the change, a position
reclassification is proposed to ensure the position is at the same level as the position in the
City Manager’s Office, therefore having the ability to seamlessly provide better support to the
City Council. The $6,000 increase is to address the slightly higher classification.
Chair O’Neill opened public comments.
Charles Klobe inquired as to the schedule for Mesa and Irvine Ranch water billing. Utilities
Director Mark Vukojevic stated he believed Mesa was bi-monthly and Irvine Ranch is monthly.
Historically, water billing by various agencies has been on a bi-monthly basis, however, more
agencies are now converting to monthly billing.
Seeing no others, Chair O’Neill closed public comments.
This item was received and filed and there was no further action taken.
B. PERFORMANCE METRICS
Recommended Action: Review and discuss the performance metrics evaluated in this report
and provide any recommendations for consideration by the City Manager and City Council.
Finance Director/Treasurer Al-Imam provided a summary of the proposed performance
metrics. Finance Director/Treasurer Al-Imam noted that over the past three to four months the
Finance Department has worked closely with each City Department to identify performance
metrics which will be incorporated within the final budget document upon adoption. Workload
indicators have also been incorporated, as long as each Department identified at least two or
three performance metrics, which are slightly different. Since this is the first year performance
metrics are included, it is expected that Departments will continue to build on their performance
metric foundation in subsequent years and that they demonstrate the City’s commitment to
providing high quality and efficient delivery of programs and services.
Committee Member Collopy commented the Finance Committee has been pressing for
performance metrics for many years and he is supportive of staff’s efforts in this regard. He
also confirmed that the “Be Well” partnership is included in the City Manager’s Office budget,
and he expressed concern with unexpected, unacceptable response times concerning previous
incidents. He would like to see performance metrics related to “Be Well’s” response times. City
Manager Grace Leung indicated that she would follow-up with Committee Member Collopy to
better understand the facts and circumstances surrounding these incidents.
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Committee Member Collopy confirmed with Public Works Director Dave Webb that Public
Works staff negotiates with subcontractors as it relates to City construction projects, and the
City is the contracting agency. He suggested that Public Works incorporate performance
metrics on the cost and schedule for City construction projects, commenting that contractors
may have to return funds back to the City in event of non-performance. Public Works Director
Webb responded the City performs due diligence in determining the schedule and costs related
to each project, and explained how liquidated damages are used to ensure performance with
each contract.
Committee Member Collopy expressed support for performance metrics designed to hold
contractors to agreed-upon schedules and costs. Public Works Director Webb provided detail
as to how his department provides projections and schedules concerning awarded projects,
which he places in his master schedule and then incorporates applicable metrics. The majority
of projects are completed on-time and within costs, and he explained the typical 10%
contingency amounts that are included in most contracts. Public Works Director Webb stated
the best performance measurement is how a project ends, because the majority typically start
as “low-bid” awards. He also elaborated on the required bidding process, which is specified by
State law and the municipal code. It was indicated that the City has more flexibility when
awarding professional services agreements, which are not solely based on cost but also factor
in qualifications and experience.
Committee Member Collopy commented on the “Invitation for Bid” (IFB) process as compared
to the RFP process, and any other options available to the City, for large scale projects such
as the future Police Station. Public Works Director Webb spoke concerning other options,
including “design-build”, in which the City has not frequently initiated, and pre-qualifying
contractors, which may result in fewer change orders, but not necessarily lower costs.
Assistant City Attorney Yolanda Summerhill suggested “design-build” as an option that would
allow the City to avoid the low-bid requirements of the Public Contracts Code. For more
sophisticated projects, such as the future Police Station, the City could potentially pursue
“design-build” options, which may provide better outcomes.
Chair O’Neill commented positively concerning the percentage of 911 calls responded to within
15 seconds, noting that it is an amazing metric. He further commented that he is uncertain
about the City needing to target certain Police Department items, such as having a certain
amount of calls or total calls for service, as it should really reference what is typically expected
in terms of volume. He said his target is the Police Department should be responding within 15
seconds, 90% of the time. Deputy Director, Newport Beach Police Jonathan Stafford
responded some of the targets are actually Statewide standards, such as the response within
15 seconds.
Chair O’Neill requested the investigative clearance rate of 100 should remain in the document
and the percentage on the social media posts for information/preventative and crime alerts
should be classified separately. Deputy Director Stafford responded the public information
metrics are internal objectives and targets, but not necessarily as informative for the public.
Discussion ensued among the Committee and staff concerning the performance metrics and
that they will continue to evolve over time as they are reviewed year over year.
Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed public comments.
This item was received and filed and there was no further action taken.
C. THIRD QUARTER BUDGET UPDATE
Recommended Action: Review and discuss the performance metrics evaluated in this report
and provide any recommendations for consideration by the City Manager and City Council.
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Finance Committee Regular Meeting Minutes
May 9, 2024
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Acting Deputy Finance Director Burguan provided a summary and presentation of the Fiscal
Year 2023-24 third quarter budget update.
Acting Deputy Finance Director Burguan noted third quarter revenues are projected to be $1.1
million lower compared to the second quarter primarily due to decreases in sales tax, transient
occupancy tax, and service fees and charges, which is partially offset by an
increase in projected investment earnings.
Committee Member Collopy inquired as to the timing of receipt of information from the City’s
sales tax consultants. Finance Director/Treasure Al-Imam stated that for the March 31 quarter,
the numbers should be in within the next three to four weeks.
Acting Deputy Finance Director Burguan continued, noting that property tax revenue is the
City’s largest source of revenue and is projected to increase by $5.2 million (3.8%) over last
fiscal year. The current forecast for property tax revenue is consistent with the amount
previously forecasted. Sales tax revenue is the City’s second largest source of revenue and is
projected to be $0.7 million (1.5%) lower than the amount reported in the second quarter budget
update. However, the forecast is consistent with the amount reported to the Finance Committee
in March 2024. A slide was presented which illustrated the decrease in sales tax revenues in
the autos and transportation, general consumer goods, and State and County pools sectors,
but noting an increase in restaurants and hotels category.
Discussion ensued among the Committee and staff concerning the impacts of various auto
dealerships on City sales tax, noting that one dealership is closed temporarily and that luxury
dealerships are not currently performing as well as mid-range dealerships.
Acting Deputy Finance Director Burguan continued, providing detail on sales tax revenue per
capita, with a slide illustrating the flattening of sales tax Statewide and that this is not unique to
Newport Beach. She continued her presentation, noting that transient occupancy tax (TOT)
revenue is the City’s third largest source of revenue and is projected to increase by $1.1 million
(3.6%) over the prior year, which is $0.7 million lower than previously forecasted. Gross TOT
revenues are projected at $38.2 million. Visit Newport Beach (VNB) receives 18% (or
approximately $6.9 million), which brings TOT revenues to $31.3 million, net of amounts
remitted to VNB. A chart was displayed which breaks down TOT revenues by residential and
commercial over the past 5 years. Revenue from hotels has increased substantially post
pandemic. Residential saw significant increases year over year but is projected to be lower in
the current fiscal year.
Committee Member Collopy confirmed with Finance Director/Treasurer Al-Imam that the
Porsche dealership is scheduled to be open in February 2025. Acting Deputy Finance Director
Burguan continued stating that other general fund revenues projected to exceed budget by
$0.2 million with service Fees and Charges projected to come in $0.8 million lower than
projected at the second quarter due to lower volumes of plan check fees and investment
earning projected to exceed budgeted amounts by $1 million. The general fund expenditure
budget totals $310 million and the projected actuals are expected at $301.7 million, which
reflects an expenditure budget savings of $8.3 million. The majority of savings are in the salary
and benefits category, and there are some vacancies as well as lower than budgeted costs
and benefits. There are a few budget amendments that will be recommended to the City
Council, including an increase for recreation fee-based classes, as well as transfers related to
CIP projects. It is currently anticipated the City will end the current year with $8.9 million in
unrestricted fund balance based on the third quarter update. Approximately $3.1 million of this
will be used to fund the contingency reserve which will leave $5.7 million uncommitted for City
Council consideration with respect to the use of surplus funds.
Chair O’Neill inquired about the level of funding in the current year to paydown the pension
liability. Finance Director/Treasurer Al-Imam stated the appropriation has already been “front-
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May 9, 2024
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loaded for 2023-24 for a full payment of $45 million. It was also noted that since there is still
one quarter remaining in the fiscal year, there may be additional growth in the surplus.
Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed public comments.
This item was received and filed and there was no further action taken.
D. 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 and there was no further action taken.
VII. ADJOURNMENT
The Finance Committee meeting adjourned at 3:55 p.m.
Attest:
___________________________________ _____________________
Will O’Neill, Mayor/Chair Date
Finance Committee
11
Initial Audit
Communication
May 30, 2024 12
2
Annual financial audit of City
Agreed-upon procedures applied to Gann
Limitation Worksheets
Single Audit
Not a fraud audit
13
3
Communications with Audit Committee
Conduct audit in accordance with GAAS
and GAGAS
Form an opinion on the financial
statements
14
4
Interim will be scheduled for July 2024
Risk assessment
Internal controls
Gann limit
Final will be scheduled for October 2024
Substantive tests of balances
Single Audit scheduled for January 2025
15
5
Presentation of Results – January 2025
Violation of laws or regulations
Our views of accounting practices including policies, estimates and disclosures
Significant difficulties
Disagreements with management
Significant unusual transactions
Potential effects of uncorrected misstatements
Other matters
16
Questions
May 30, 2024 17
ITEM NO. 6B1 FINANCE COMMITTEE
RECOMMENDATION TO THE CITY COUNCIL
FOR THE FISCAL YEAR 2024-25 OPERATING
BUDGET
ATTACHMENT A
STAFF PRESENTATION – ADDITIONAL MATERIALS RECEIVED
18
FISCAL YEAR 2024-25
PROPOSED BUDGET
Finance Committee Meeting -MAY 30, 2024
19
SUMMARY OF ALL FUNDS –EXPENDITURES
2
•4.6% growth in operating budget, primarily related to:•Routine personnel costs such as cost-of-living-adjustments and merit increases•Proposed Program Enhancement Requests
•22.9% growth in transfers out, primarily due to increases in transfers to the Tidelands, Parks Maintenance Fund, Parks & Community Centers Fund, and interfund transfers within the Water Utility for capital projects.
•85% growth in CIP due to projects such as the Balboa Library/Fire Station No. 1 project and the Big Canyon Restoration project, along with increases to park projects, street improvements, water and wastewater system improvements, etc.
FY 21
Adopted
FY 22
Adopted
FY 23
Adopted
FY 24
Adopted
FY 25
Proposed
%
Variance
Operating Budget 307,536,523 309,114,306 330,919,923 351,870,115 368,155,904 4.6%
Transfers Out 27,979,154 39,075,536 53,035,836 58,859,125 72,312,196 22.9%
CIP New Appropriations 31,377,224 35,506,078 71,030,292 29,375,044 54,344,000 85.0%
Total Budget 366,892,901 383,695,920 454,986,051 440,104,284 494,812,100 12.4%
Note: Amounts for FY 25 include proposed budget revisions. Prior year amounts have been restated to align with current accounting for Tideland expenditures.
20
GENERAL FUND SOURCES AND USES
3
2024-25 Proposed
Beginning Unrestricted Fund Balance -
Operating Revenues & Transfers In 315,298,822
Operating Expenditures & Transfers Out (311,258,638)
Repayment of Advances 1,250,000
Preliminary Ending Unrestricted Fund Balance 5,290,184
Additional CalPERS UAL Payment (5,000,000)
Final Ending Unrestricted Fund Balance 290,184
21
PROPOSED BUDGET REVISIONS: FISCAL YEAR 2024-25
4
Fund Item Budget Increase
(Decrease)
General City Clerk Department Assistant to City Manager Administrative Assistant $6,681
Total General Fund Charges $6,681
Fund Item Budget Increase (Decrease)
Water Transition from Bi-Monthly to Monthly Billing for Utilities $180,540
Wastewater Transition from Bi-Monthly to Monthly Billing for Utilities $31,860
Oceanfront
Encroachment
Environmental Habitat Restoration – Monitoring & Maint. (25X12)$160,000
Environmental
Liability
Environmental Habitat Restoration – Monitoring & Maint. (25X12)$220,000
Total Other Fund Charges $592,400
22
5
QUESTIONS?
23
4/30/24
Scheduled Date Agenda Title Report Type Agenda Description
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.
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.
Internal Audit Program Update Presentation Presentation of internal audit reports, findings, and recommendations from the FY 2023-24 audit program.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
September 2024
October 2024
November 2024
December 2024
Committee Recess
August 2024
Committee Recess
Newport Beach Finance Committee Work Plan
June 2024
Committee Recess
Committee Recess
July 2024
1
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