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HomeMy WebLinkAboutFinance Committee Agenda - March 15, 2018CITY OF NEWPORT BEACH FINANCE COMMITTEE AGENDA - Final 100 Civic Center Drive - Crystal Cove Conference Room, Bay 2D Thursday, March 15, 2018 - 3:00 PM Finance Committee Members: Diane Dixon, Chair / Council Member Will O'Neill, Mayor Pro Tem Kevin Muldoon, Council Member William Collopy, Committee Member Patti Gorczyca, Committee Member Joe Stapleton, Committee Member Larry Tucker, Committee Member Staff Members: Dave Kiff, City Manager Carol Jacobs, Assistant City Manager Dan Matusiewicz, Finance Director / Treasurer Steve Montano, Deputy Director, Finance Marlene Burns, Administrative Specialist to the Finance Director The Finance Committee meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that the Finance Committee agenda be posted at least seventy-two (72) hours in advance of each regular meeting and that the public be allowed to comment on agenda items before the Committee and items not on the agenda but are within the subject matter jurisdiction of the Finance Committee. The Chair may limit public comments to a reasonable amount of time, generally three (3) minutes per person. The City of Newport Beach’s goal is 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, we will attempt to accommodate you in every reasonable manner. Please contact Dan Matusiewicz, Finance Director, 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) 644-3123 or dmatusiewicz@newportbeachca.gov. 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 Department 24 hours prior to the scheduled meeting. I.CALL MEETING TO ORDER II.ROLL CALL III.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. IV.CONSENT CALENDAR March 15, 2018 Page 2 Finance Committee Meeting MINUTES OF FEBRUARY 15, 2018A. Recommended Action: Approve and file. DRAFT MINUTES 021518 V.CURRENT BUSINESS AUDIT CLOSINGA. Summary: The City’s external audit firm, White Nelson Diehl Evans LLP will meet with the Finance Committee to discuss the audit findings for the fiscal year ending June 30, 2017. The committee will have an opportunity to discuss any potential areas of concern and the auditors can discuss any changes in accounting standards or disclosures that were relevant for the audit year. Recommended Action: Receive and file. STAFF REPORT ATTACHMENT A ATTACHMENT B REVIEW OF THE FIRE DEPARTMENT BUDGET TO ACTUAL RESULTSB. Summary: In preparation of the 2018-2019 Fiscal Year budget, staff will review budget assumptions against actual results for Fiscal Year 2016-2017. Recommended Action: Receive and file. FACILITIES FINANCIAL PLANC. Summary: Review Facilities Financial Plan for financial solvency based on known Council priorities. Recommended Action: Receive and file. ATTACHMENT A March 15, 2018 Page 3 Finance Committee Meeting HARBOR & BEACHES MASTER PLAND. Summary: Review current Harbor & Beaches Master Plan for financial solvency based on known Council Priorities. Recommended Action: Recommend forwarding to City Council for review and approval. STAFF REPORT ATTACHMENT A PENSION DISCUSSIONE. Summary: Agenda item reserved for any discussion regarding the status of the City's pension liability. Recommended Action: Receive and file. WORK PLAN REVIEWF. Summary: Staff will review with the Committee the agenda topics scheduled for the remainder of the calendar year. Recommended Action: Receive and file. ATTACHMENT A VI.FINANCE COMMITTEE ANNOUNCEMENTS ON MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEM) VII.ADJOURNMENT Finance Committee Meeting Minutes February 15, 2018   Page 1 of 11 CITY OF NEWPORT BEACH FINANCE COMMITTEE FEBRUARY 15, 2018 MEETING MINUTES I. CALL MEETING TO ORDER The meeting was called to order at 3:01 p.m. in the Crystal Cove Conference Room, Bay 2D, 100 Civic Center Drive, Newport Beach, California 92660. II. ROLL CALL PRESENT: Council Member Diane Dixon (Chair), Mayor Pro Tem Will O'Neill, Committee Member William Collopy, Committee Member Joe Stapleton, and Committee Member Larry Tucker ABSENT: Council Member Kevin Muldoon (excused) and Committee Member Patti Gorczyca (excused) STAFF PRESENT: City Manager Dave Kiff, Assistant City Manager Carol Jacobs, Finance Director/Treasurer Dan Matusiewicz, Deputy Director, Finance Steve Montano, Budget Manager Susan Giangrande, Accounting Manager Rukshana Virany, Police Chief Jon Lewis, Fire Chief Chip Duncan, Public Works Finance Administrative Manager Jamie Copeland, Deputy Director of Police Support Services Jonathon Stafford, Police Department IT Coordinator Tom Encheff, Fire Assistant Chief Jeff Boyles and Julie Lang. MEMBER OF THE PUBLIC: Jim Mosher III. PUBLIC COMMENTS Chair Dixon opened public comments. Jim Mosher commented that the “open budget” portal is more useful than he thought it would be. He expressed concerns that the data is only updated periodically and would like a better sense of what is happening with the budget in “real time.” He suggested the timeliness of the data is a higher priority than absolute accuracy of the data provided. He inquired regarding the “checkbook” portal and noted he was not able to find a reference to it in previous Finance Committee minutes. Staff responded that there is a four-week refresh interval for the “Open Budget” module but they are simply behind schedule on the next update. There are outstanding matters regarding the “Open Checkbook” module, which involve discussions with the City Attorney and Human Resources regarding the public disclosure of sensitive information on confidential agreements and invoicing. Chair Dixon closed public comments. IV. CONSENT CALENDAR A. MINUTES OF OCTOBER 12, 2017 Recommended Action: Approve and file. MOTION: O’Neill moved, and Collopy seconded, to approve the minutes. The motion carried (5 – 0, Muldoon and Gorczyca absent). Finance Committee Meeting Minutes February 15, 2018   Page 2 of 11 B. MINUTES OF JANUARY 11, 2018 Recommended Action: Approve and file. MOTION: Collopy moved, and O’Neill seconded, to approve the minutes, as amended. The motion carried (5 – 0, Muldoon and Gorczyca absent). V. CURRENT BUSINESS A. CREATE A SUBCOMMITTEE TO REVIEW COUNCIL FINANCE POLICIES Summary: The Finance Committee will consider the creation of a Finance Subcommittee to review Council Finance policies, discuss membership, scope of work and timeline. Recommended Action: Discuss and recommend the formation of Finance Policy Subcommittee and related details. A request was made by Mayor Pro Tem O’Neill to create a subcommittee to review the Council Finance Policies (“F” Policies). Several have already been reviewed or are under review, and this new subcommittee would review approximately fifteen (15) of the remaining policies. Discussion ensued regarding the purpose and scope of the subcommittee. Chair Dixon inquired whether the subcommittee would consist of Mayor Pro Tem O’Neill and Committee Members Stapleton and Tucker. Mayor Pro Tem O’Neill stated that he would like the subcommittee to review approximately four (4) of the policies at a time and submit recommendations or suggestions to the Finance Committee for their review and consideration prior to forwarding final recommendations to the City Council. Chair Dixon inquired as to the timeline for the subcommittee, the appropriate levels of review for the Finance Committee, and which suggestions should be forwarded to the City Council for policy decisions. Mayor Pro Tem O’Neill stated that ultimately the suggestions and recommendations on the “F” policies would be forwarded to the City Council for their final approval. It was likely the review process would not be completed prior to the City Council budget review for the upcoming year. He envisions the subcommittee’s work would commence immediately and be completed around September 1, 2018. Chair Dixon opened public comments. Noting there were no members of the public who elected to speak on this item, Chair Dixon closed public comments. MOTION: O’Neill moved, and Stapleton seconded, to all form a subcommittee consisting of Mayor Pro Tem O’Neill and Committee Members Stapleton and Tucker to review the City Council Finance policies and return with recommendations for the Finance Committee’s review in September 2018. The motion carried (5 – 0, Muldoon and Gorczyca absent). B. RISK-BASED RESERVE SUBCOMMITTEE UPDATE Summary: Discuss Finance Committee progress since the last meeting. Recommended Action: Receive and file. Finance Committee Meeting Minutes February 15, 2018   Page 3 of 11 Finance Director Matusiewicz stated the intent of this item was to give a status update on the project. He mentioned Committee Members Collopy and Gorczyca participated in a conference call with staff and the consultant from GFOA to review the first drafts of study reports. These reports primarily dealt with “extreme” events to get a sense of how to utilize the study information. For example, in the earthquake example that was provided, the subcommittee members were presented with information that illustrated the level of reserves required to have certain confidence levels the financial impacts of the extreme event could be met and addressed. The take-away from the meeting was there should be some level of reserves where the City can affordably and efficiently address extreme events with cash reserves and then maintain insurance to address a certain range of financial impacts. At the upper limit, in the event of extreme events, such as a 9.0 earthquake, it may be best to issue debt to cover costs. Finance Director, Matusiewicz described various strategies that lead to an entity’s financial flexibility. A chart was displayed that showed the how cash reserves, insurance and debt are interrelated and could be used to cover unexpected events. Using the illustration, as an example, Finance Director Matusiewicz described that it may be cost effective to use cash reserves to get to the 75% confidence level that a loss could be covered but it would likely be more cost effective to achieve the remaining level of coverage with a combination of insurance and potential debt issuance to achieve the desired level of confidence that sufficient funds would be available to pay for the event. Committee Member Collopy described how these instruments could be used in conjunction with cash reserves to address extreme events including an indemnity policy tied to the damages for a specific event, and a parametric policy, which would provide payout tied to a certain threshold, such as a 9.0 earthquake. The consultant is spending a considerable amount of time on determining the types of losses that could be adequately covered with reserves. Examples were given such as if a certain number of cars where not sold in a particular year, the parametric policy would provide cash upon reaching the threshold event. In summary, he stated the purpose of this study was to provide staff with a tool that has higher fidelity whether the reserves are adequate to cover the amount of losses that could be expected given the uncertainty of extreme events. Committee Member Collopy commented staff is reviewing the consultant’s information and discussing the merits of a parametric and/or indemnity instruments, and whether the current reserve amounts are adequate, inadequate, or too rich. Discussion ensued regarding the recommendations that would be provided to the Finance Committee from staff and the consultant. Staff responded that a recommendation would be made by staff to the Finance Committee, based upon the consultant’s study, regarding the various options available and the degree of confidence the City would be willing to accept, to address risks and extreme events. There will be a “substance-based” analysis provided by the consultant. Finance Director, Matusiewicz stated the staff report to the Finance Committee, as a result of this study, would provide options to address risk and it would ultimately be the City Council’s decision to determine what level of coverage/risk the City would be willing to accept. He mentioned various types of risks cities face including promises made to developers and pension obligations. He summarized that addressing risk typically involves an interrelationship among cash reserves, debt and insurance. Chair Dixon inquired as to the feasibility of “preapproval” of debt and whether that has been an approach taken by other municipalities. KNN Municipal Advisor, Mark Young commented that the GFOA consultant is using a “worksheet analysis” to identify risks and that process is commendable. He has used this Finance Committee Meeting Minutes February 15, 2018   Page 4 of 11 approach for other municipalities and the resulting transparency into the process is worth the time for the analysis. There are seven (7) worksheets in the analysis and one is related to liquidity, one factor used to assess an agency’s credit worthiness and ability to obtain and afford additional financing quickly. He noted, in general, it is not common to have a particular debt facility “prenegotiated,” and it is best to evaluated on a case-by-case basis. He mentioned that if an agency has very little debt on balance sheets and shows a surplus every year, a Line of Credit (LOC) would relatively easy to obtain. Most AAA credit-rated cities have very little General Fund debt and are able to obtain LOC’s Committee Member Tucker expressed skepticism that a LOC could be negotiated with terms that would bail the City out no matter what happened. A lender would not likely be willing to accept such terms. Committee Member Collopy expressed it was a novel idea and worth exploring but conceded that his perspective was from that of a borrower not a lender. KNN Municipal Advisor provided an example from the City of Poway, which experience large fires quite frequently. They have a history of major fires; however, they know they will likely need to significantly draw down their reserves quickly because reimbursement by FEMA would take at least 18-24 months. Poway spent a significant amount of time determining how much cash reserves they should have on hand to deal with the liquidity issue even though they would expect to be eventually reimbursed by FEMA. Committee Member Tucker expressed skepticism of study and suggested it is possible the results of the study could simply affirm the City’s current reserve policies are adequate but encouraged staff and Finance Committee “stay the course,” and monitor the study as it progresses. Discussion ensued regarding whether the adequacy of cash liquidity to respond quickly to risk events. Chair Dixon inquired if there were any constraints on the City’s ability to issue debt in response to an extreme event would it alter City’s strategy. Staff noted there is an interrelationship between cash reserves, access to debt and insurance. Constraints on debt may impact the level of required reserves and or insurance. Chair Dixon opened public comments. Noting there were no members of the public who elected to speak on this item, Chair Dixon closed public comments. Staff noted that the consultant anticipated the final report to be issued in June; however, they have already been providing interim reports and anticipate an earlier final report by April or May. Finance Director Matusiewicz stated the Finance Committee will be given a report of the findings for their consideration. Ultimately, the Finance Committee’s recommendations would be forwarded to the City Council for final review and consideration. Committee Member Collopy suggested staff not report every component of the study as it comes in. He suggested the Subcommittee’s involvement should be a “top down” approach versus “bottom up” and that staff only involve the Subcommittee after major sections have been completed. He reaffirmed that the overarching goal is to ensure the City is maintaining reasonable reserves to mitigate risks. There was no further discussion on this item. Finance Committee Meeting Minutes February 15, 2018   Page 5 of 11 C. DEBT POLICY-REVIEW SUBCOMMITTEE UPDATE Summary: Subcommittee will discuss revisions of Debt Policy and discuss next steps. Recommended Action: Recommendation to the City Council to revise the Debt Policy as indicated. Chair Dixon announced the Committee received a red-line version of the draft revised debt policy. Mayor Pro Tem O’Neill acknowledged Mr. Young and Committee Member Tucker’s efforts to improve the policy. He mentioned the Council policies, as established, do not bind the Council to particular courses of action, and the policy can be waived anytime with four (4) votes. He noted the differences between Council policies and Charter provisions, which can only be changed by a vote of Newport Beach residents. He noted that in the “after-action” report issued after the Civic Center COP debt was issued, there was mention of the City’s lack of a comprehensive debt policy. Subsequently, a debt policy was created. The changes to the debt policy suggested as part of the staff report are substantive, rearrange the document for clarity and understanding but do not represent massive changes. It was discussed that from one perspective, one of the goals of the debt policy is to maintain good standing with credit rating agencies, which look at the City’s ability to use debt. Language was also included in the draft address new California laws. Failure to adopt these changes might prevent some of the new assessment districts from moving forward. Comments were made regarding including specific language, identified in Section F9 of the draft debt policy, which would ensure a City Council would have to affirmatively vote on a authorizing bond resolution to utilize call options greater than 10 years or a “make whole” call provision if circumstances determine those call provisions would benefit the City. The staff report would also have to affirmatively identify the type of call provisions being presented to the City Council. Mayor Pro Tem O’Neill stated that, for the record, Committee Member Gorczyca expressed objections regarding the utilization of any alternative debt instruments, as a “well-run” City should not include those in their debt policies and procedures. He noted she referenced the County of Orange debt policy prohibits alternative debt instruments. The City of Mission Viejo also has a similar provision. He noted there was merit to this philosophy and noted that within the draft policy in Section G. This would let staff and residents know the City does not anticipate utilizing these instruments. It is also important to the residents to keep the City’s AAA bond rating and the debt policy should not create a circumstance which would not reflect positively on the City’s credit rating. Chair Dixon affirmed removing the provisions would might compromise the City’s favorable debt rating. Mayor Pro Tem O’Neill stated the reference to the AAA bond rating was included inadvertently and the draft redline policy is not in its final format. It was noted that subsequent to the creation of the debt policy, the credit rating agencies are currently including climate change and sea level rises as determinants of an agency’s credit rating. The final debt policy should include wording which would set the City up to have its credit rating downgraded. Mr. Young affirmed that he heard from credit rating agencies that policy decisions should be driven by their potential effects on the agency’s credit rating. Finance Committee Meeting Minutes February 15, 2018   Page 6 of 11 Chair Dixon noted the Newport Beach residents are very proprietary about the City’s AAA bond rating. She inquired whether there were other options that could be considered to protect the City’s credit worthiness. Mr. Young stated the City’s AAA bond rating is an impressive economic development tool. It is not locked into policy, as down the road, there may be community needs that may be greater than the value of the AAA rating. Mr. Young stated that by not acknowledging there are other potential debt management tools available to the City there is a potential the policy would not be a strong instrument. Committee Member Collopy inquired as to the triggers that would invite the City to consider alternative debt tools. Mayor Pro Tem O’Neill affirmed that all debt decision must come back to the City Council, including the utilization of alternative debt instruments. The use of alternative debt instruments must also require the City to utilize an independent financial advisor. An independent financial advisor must also be utilized when the City utilizes other forms of debt. Mr. Young stated all debt has to come back to the Council; alternative debt instrument must include the use of an independent financial advisor, not just staff. The utilization debt must also include the use of an independent financial advisor. Discussion ensued regarding the circumstances by which the City would have to utilize the services of an independent financial advisor. It was clarified that only debt considered a security pursuant to SEC and MRSB regulations would require the use of an independent financial advisor. Discussion further ensued regarding the circumstances and procedures that may be followed if the City determines to affirmatively recommend provisions that are in conflict with proposed debt policy section F9. This would make any deviation fully transparent to the public. It was noted that the decision regarding the Civic Center COP may not have changed, even if this provision was in place, however, the entire process would have been more fully transparent to the public. Chair Dixon inquired if the debt policy would have an impact on the City’s credit rating and requested clarification of any Charter constraints. Committee Member Tucker stated the debt policy should remain “apolitical,” The City Council makes policy decisions and they may consider the political ramifications of particular decisions. However, it would not be appropriate for the Finance Committee to be making those considerations at this point. Chair Dixon inquired as to the factors that could potentially impact the City’s credit rating. Committee Member Tucker stated that the draft policy will now include edits and clarification of terms that will provide deeper understanding of the City’s debt policy. He suggested further editing to provide further clarification, including consistency of defined terms. Discussion ensued regarding the elements and clarifications that should be included in the draft policy before it returns to the Finance Committee. Finance Director Matusiewicz suggested an edit on the bottom of Page 7 of the draft policy, to include the word, “section.” Finance Committee Meeting Minutes February 15, 2018   Page 7 of 11 Chair Dixon affirmed staff would provide “clean up” language in the proposed policy and it would be forwarded to the City Council for their consideration with no further review by the Finance Committee. Chair Dixon opened public comments. Jim Mosher expressed concerns with “malleable” policies, which can be waived at the spur of the moment. Certain Council policies adopted by resolution included clauses which state provisions cannot be waived by the City Council. Those circumstances should be affirmatively noticed on the agenda when the City Council is planning to waive a provision. He concurred with Committee Member Collopy’s suggestions to formalize and provide uniformity of definitions in the document. He noted he had “structural” concerns with the document, including on page 9, how the fixed rate debt would be structured. He noted it was stated previously a preference to pay off debt very rapidly, including a strong preference and policy for “double” debt payment. It seems contradictory to state in the policy that we are not going to do that. He also expressed confusion as to the provisions in Item F9 within the policy. He suggested consistency throughout the document. Chair Dixon closed public comments. Committee Member Tucker confirmed many of the suggestions made by the speaker, stating the document can be edited to provide further clarity. He suggested staff utilize the City Attorney’s Office to review the document for clarity and “flow” to ensure clarity. MOTION: O’Neill moved, and Collopy seconded, to approve the revised debt management policy, as amended and edited by the Committee Members and staff. The motion carried (5 – 0, Muldoon and Gorczyca absent). D. REVIEW OF POLICE DEPARTMENT BUDGET TO ACTUAL RESULTS Summary: In preparation of the 2018-2019 Budget, staff will review budget assumptions against actual results for Fiscal Year 2016-2017 and pertinent updates concerning the Fiscal Year 2017-2018 to date. Recommended Action: Receive and file. Chief Jon Lewis and Deputy Director of Police Support Services Jonathan Stafford, representing the Police Department made a staff report, which included display of a PowerPoint Presentation. Chief Lewis stated he would provide an overview of the Police Department Fiscal Year 2017 budget, accountability measures, and management procedures for the funds that have been entrusted for the Department’s operations. Overall, the Department features a $57 million dollar budget, of which 86% is spent on personnel costs. There are 146 sworn police officer positions, 77 civilian positions, various part-timers and volunteers who augment services. The materials and operations portion of the budget is $8 million and there is a smaller portion, $3.2 million, dedicated to capital costs. Chief Lewis spoke regarding recent budget savings reflected in the budget due to retirement of long-tenured employees and the current number of vacancies being carried in the Department. Vacancies are due to retirements and attrition. Chair Dixon inquired if the Department is aggressively managing overtime costs. Finance Committee Meeting Minutes February 15, 2018   Page 8 of 11 Chief Lewis stated there is a correlation between minimum staffing levels and utilization of overtime. The majority of overtime usage is to fill shortages in minimum staffing levels. He referred to the “table of organization” and the Department’s ability to over hire in the event of an anticipated retirement. The Department does stay within its budgeted positions. He further mentioned that overtime costs are often offset by salary savings, realized through the carrying of vacancies. Eighty-five percent (85%) of Department overtime costs are related to minimum staffing requirements, primarily with field personnel. Back-of-house functions, such as support services, do not require minimum staffing levels. Chief Lewis provided examples regarding overtime costs relative to whether it is a longer tenured versus shorter tenured employee providing coverage. He noted the Department utilizes an overtime spreadsheet matrix and it has been an effective tool in managing overtime costs. It was reported the Police Department receives grant funding for the provision of certain services, such as traffic safety. In that case, the funds are used to support services such as DUI checkpoints. The federal grant is used to specifically fund overtime for traffic and safety enforcement; however, it cannot be used to support minimum staffing requirements. There are also other programs, such as ABC establishment accountability efforts, which provide revenue offsets. Deputy Director of Police Support Services Stafford provided detail on the Department’s personnel budget and provided examples from the City’s new open budget portal, as well as other technology tools. He utilized the numbers from those instruments so that any member of the public listening to the presentation could “match up” the numbers as well. Finance Director Matusiewicz commented that last year there was a deviation between budget and actual. CalPERS used to collect the payment for Unfunded Accrued Liability (UAL). Staff was able to get that changed starting in 2018. Mayor Pro Tem O’Neill stated it is important for the Finance Committee to continue to take “deep dives” into Departmental budgets to ensure public transparency and understanding as to why financial decisions are made. Factors, such as the UAL, which are set by outside agencies determine what the City can and cannot do in certain areas. He expressed ongoing support for continued deep evaluation of the Department budgets so that the public can be provided deeper understanding of the structural factors that come into play. Committee Member Collopy stated that the Finance Committee does not have control over final budget decisions. Mayor Pro Tem O’Neill responded the Finance Committee provides transparency into the process and citing the example of the shift from the 30 year to the 20 year period that was recently establish due to diligent work by Department staff. It was noted that the next State Controller’s Report would not require the City to provide information regarding the UAL. Mayor Pro Tem O’Neill commented that the Finance Committee can make recommendations regarding increasing or decreasing the number of personnel in every Department, although they do not have discretion over rates of pay or benefits. Chief Lewis returned to the presentation and provided detail on the fleet replacement program. The Department seeks to realize efficiencies and they manage outflows and purchases that are consistent with Council policies and purchasing guidelines. Each purchase is complete only when all Departmental controls have been enacted, starting with the budget preparation each year. Every purchase has oversight at the line, division, and management level. He cited the credit card purchasing policy as an example and provided detail regarding the levels of approval required. Finance Committee Meeting Minutes February 15, 2018   Page 9 of 11 Deputy Director of Police Support Services Stafford provided detail on the Department’s fleet maintenance program. The Department’s budget covers purchases, repairs and replacements. The Department has “black and white” vehicles as well as motorcycles, which need to be “outfitted” with specific equipment including in-vehicle computers and mobile video. The after- market outfitting is not supported by the manufacturer and are handled separately from the initial purchase. He noted the vehicles are received from the manufacturer ready to be outfitted; however, there is an additional 20% cost to equip the vehicles after purchase. Deputy Director of Police Support Services Stafford commented on Council Policy F9, which determines the time/mileage thresholds that have to be met prior to vehicle replacement. He noted the Department replaces the vehicles in worst condition first and they are very careful about selecting new vehicles. He spoke regarding the recent renovation of the SWAT van and the Department decision to find a better option for the City’s Commend Post vehicle. Chair Dixon mentioned the 2015 study of the City’s fleet and noted that without compromising safety the City was able to save a significant amount of funds. Chief Lewis affirmed the City’s fleet is in very good condition and overall officers take good care of Department assets. The vehicles are also the most visible representation to the community of Department operations. Chief Lewis shifted the presentation to the Department’s travel and training process, including the layers of approval and accountability for expenditures. There are City mandated requirements for travel and training expenses and he described the management review required prior to approvals including review of the types of training, location, training providers, and evaluations made by each employee’s supervisor prior to approval. Other options are considered for travel and training if there are more efficient and effective methods. Committee Member Collopy inquired as to who enforces or “polices” the travel and training process, to ensure there are no abuses. Chief Lewis provided detail regarding the Department’s in-house travel specialist, the Staffing Division Secretary, who is well-versed in City policies and purchasing procedures. The guidelines are applied rigidly and there are separate spreadsheets for internal control to project and forecast for training and travel costs. Deputy Director of Police Support Services Stafford affirms there are even internal controls that exist for the Chief’s purchases, travel, and training. Committee Member Collopy inquired whether the Fire Department has a similar internal control system for travel and training. Fire Chief Duncan noted the Department must also adhere to the City’s procedures related to travel and training and that some Department training is articulated in Memorandums of Understanding. The Fire Department also provides in-house training at its training facility. Chair Dixon inquired whether the Police Department is adequately funded and noted there has been an increase in crime in certain parts of the community. Chief Lewis commented the Department is lean, efficient, and utilizing resources effectively. Currently, they are not filling vacancies and are using overtime for certain core functions. Department staff reviews the budget line-item by line-item and is usually finding budget savings over budget cycles. He mentioned that as the Department get closer to filling all vacant positions; they will continue to maintain vigilance over the budget, as funds will be less flexible without the salary savings realized through the current vacancies. Finance Committee Meeting Minutes February 15, 2018   Page 10 of 11 In response to an inquiry from the Committee, Chief Lewis acknowledged a significant portion of his work time is spent monitoring the budget versus direct policing work; however, the processes are definitely interwoven. More of his time is spent with the administrative aspect of Department operations rather than the actual business of police work. Chair Dixon opened public comments. Noting there were no individuals who elected to speak on this item, Chair Dixon closed public comments. There was no further action taken on this item. E. YEAR-END CLOSING RESULTS Summary: Staff will present year-end closing results for Fiscal Year 2016-2017. Recommended Action: Receive and file. Staff provided a brief report and made reference to a report that was distributed to the Finance Committee. There was a $12.5 million dollar surplus, with $5 million from reserves and a significant amount from expenses. Chair Dixon inquired whether Department savings are included in the surplus amount, to which staff responded in the affirmative. Chair Dixon opened public comments. Noting there were no individuals who elected to speak on this item, Chair Dixon closed public comments. There was no further action taken on this item. F. PENSION DISCUSSION Summary: Agenda item reserved for discussion regarding the status of the City’s pension liability, payment strategies, CalPERS policy updates and/or advocacy efforts. Recommended Action: Discussion if applicable. Chair Dixon referred to a letter sent by Finance Director Matusiewicz related to CalPERS amortization rates. Finance Director Matusiewicz stated the week prior to the Finance Committee meeting, the League of California Cities lobbyist reported that the amortization policy may have already been “killed” by labor, as the perception would be it would pull money “off the table” for negotiations. Finance Director Matusiewicz detailed the “mismatch” between the assumptions of the 20-year versus 30-year gains and losses. There is a significant amount of “credit” beyond 30 years that is not being utilized by cities. This change in policy will eliminate almost all of the negative amortization build into the prior schedules and made a “level” dollar payment, rather than an “inclining” payment that tracks with payroll. For almost 18 years, the City would be paying off the amount of underpaid principal. Chair Dixon commented on the well-written structure of the letter and it was so well understood that CalPERS voted to go to a 20-year amortization, even reading from Finance Director Matusiewicz’s letter in their meeting. Finance Director Matusiewicz stated the big savings would be realized by shortening the amortization period. The liability is still increasing; however, this decision would mitigate some of the liability. Finance Committee Meeting Minutes February 15, 2018   Page 11 of 11 Chair Dixon commended City staff for their time and efforts to send Finance Director Matusiewicz to Sacramento to give the employer’s side of the story. Discussion ensued as to scheduling the next update on this matter. Staff will return when appropriate to update the Finance Committee on any other material updates. Chair Dixon opened public comments. Noting there were no individuals who elected to speak on this item, Chair Dixon closed public comments. There was no further action taken on this item. G. REVIEW OF FINANCE COMMITTEE WORKPLAN Summary: Staff will review with the Committee the agenda topics scheduled for the remainder of the fiscal year and highlight those work plan items carried forward from the prior fiscal year. The Committee will also consider setting up a subcommittee to review finance related Council policies. Recommended Action: Receive and file. This item was continued to a future meeting. VI. FINANCE COMMITTEE ANNOUNCEMENTS ON MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON- DISCUSSION ITEM) The meeting scheduled for June 21, 2018, was rescheduled to June 14, 2018. Committee Member Tucker inquired if the Finance Committee could receive additional information regarding the individual components of that make up the accrued liability of the net pension obligation. VII. ADJOURNMENT The Finance Committee adjourned at 5:12 p.m. to the next regular meeting of the Finance Committee. Filed with these minutes are copies of all materials distributed at the meeting. The agenda for the Regular Meeting was posted on February 12, 2018, at 2:29 p.m., in the binder and on the City Hall Electronic Board located in the entrance of the Council Chambers at 100 Civic Center Drive. Attest: ___________________________________ _____________________ Diane Dixon, Chair Date Finance Committee From:Larry Tucker To:Burns, Marlene Cc:Tucker, Larry Subject:FC Minutes of Meeting of February 15, 2018 Date:Monday, March 12, 2018 4:33:53 PM Hi Marlene, I would like to have the last paragraph appearing before the Motion in the middle of Page 7 re- worded in its entirety as follows: “Committee Member Tucker noted that several of the cleanup edits he had previously suggested did not get into the latest draft of the Debt Policy. Since most of them were matters of form or word choices they should be looked at again by staff. He also noted that when a document is reorganized with extensive edits, it is important to re-read the document to ensure the defining of terms is still in the right place, as well as paragraph references being correct. He also suggested that the City Attorneys Office proofread the entire document for clarity and consistency. It is important that the City’s well thought out Debt Policy not be diminished by defined terms being out of place, bad paragraph references or not quite right word choices.” Thank you. Larry Tucker Item No. 4A1 Draft Minutes of February 15, 2018 Correspondence March 15, 2018 CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT Agenda Item No. 5A March 15, 2018 TO: HONORABLE CHAIRMAN AND MEMBERS OF THE COMMITTEE FROM: Finance Department Dan Matusiewicz, Finance Director (949) 644-3123, danm@newportbeachca.gov SUBJECT: FISCAL YEAR 2016-2017 AUDIT REVIEW (WITH AUDITOR) SUMMARY: In connection with the City’s financial statement audit, the auditors have expressed an “unmodified” opinion of the City’s Fiscal Year 2016-2017 financial statements, meaning they are presented fairly without reservation, in all material respects. In connection with the Single Audit, a compliance audit of federally assisted grant programs, the auditors did not note any findings of non-compliance or questioned costs. The auditors also have certain obligations to communicate the audit results to both City Council and management. The attached letters from the City’s auditors, White Nelson Diehl Evans, fulfill those obligations for the required communication. RECOMMENDED ACTION: Receive and file. DISCUSSION: The first audit letter (see Attachment A) is intended to communicate matters of particular significance that City Council should be aware of including: • Qualitative Aspects of Accounting Practices • Difficulties Encountered in Performing the Audit • Corrected and Uncorrected Adjustments • Disagreements with Management • Management Representations • Management Consultations with Other Independent Accountants Fiscal Year 2016-2017 Audit Review (With Auditor) March 15, 2018 Page 2 • Other Audit Findings or Issues We are pleased to report that the auditors reported no significant difficulties encountered in connection with the performance of the audit, corrected or uncorrected adjustments, disagreements with management, or other audit findings or issues. The second letter (see Attachment B) entitled “Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters” is intended to communicate deficiencies, significant deficiencies or material weaknesses in internal control and instances of non-compliance or other matters. The auditors did not identify any deficiencies in internal control considered to be material weakness. These are deficiencies that would result in more than a remote likelihood of a material misstatement of the financial statements or would not otherwise be prevented by the City’s internal controls. They did identify a deficiency in internal control considered to be a significant deficiency in internal control. This deficiency is less severe than a material weakness, yet important enough to merit attention to the governing body. During their analysis of the Fiscal Year 2016-2017 calculation of the estimated net pension liability and related deferred outflows and inflows of resources for the City’s defined benefit pension plan, the auditors noted the City made a prior period adjustment in error. Staff inadvertently included prior period retroactive adjustment in the amount reported for the employer contributions made during Fiscal Year 2015-2016, subsequent to the net pension liability measurement date of June 30, 2015. The California Public Employees’ Retirement System (CalPERS) does not consider prior period retroactive adjustments as part of employer contributions for Fiscal Year 2015-2016. The auditors recommend that the City implement procedures to ensure that employer contributions made subsequent to the measurement date are recorded accurately in the City’s general ledger and are reconciled to the records of such contributions maintained by CalPERS. Going forward, staff will ensure not to include any prior period retroactive adjustments in amounts reported for employer contributions. The auditors did not identify any instances of noncompliance or other matters that require specific communication to the governing body as promulgated by Government Auditing Standards. We are pleased to report that there were no management comments this year and no instances of non-compliance concerning federal award programs. You will have the opportunity to speak to the auditors, without staff present, to answer any questions that you might have concerning the Fiscal Year 2016-2017 Audit. Fiscal Year 2016-2017 Audit Review (With Auditor) March 15, 2018 Page 3 Prepared by: Submitted by: /s/ Rukshana Virany /s/ Dan Matusiewicz Rukshana Virany Dan Matusiewicz Accounting Manager Finance Director Attachments: A. Auditor’s “Audit Committee Letter” B. Auditor’s Letter “Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters” ATTACHMENT A AUDITOR’S LETTER “AUDIT COMMITTEE LETTER” 2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 Offices located in Orange and San Diego Counties - 1 - To the Honorable Mayor and Members of the City Council of the City of Newport Beach Newport Beach, California We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Newport Beach, California (the City), as of and for the year ended June 30, 2017. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter on planning matters dated July 19, 2017. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during fiscal year ended 2017. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements are as follows: a. Management’s estimate of the fair value, the price that would be received to sell an asset in an orderly transaction between market participants, of investments is based on market values provided by outside sources. b. Management’s estimate of the value of capital assets (infrastructure assets) is based on industry standards. c. The estimated useful lives of capital assets for depreciation purposes are based on industry standards. - 2 - Significant Audit Findings (Continued) Qualitative Aspects of Accounting Practices (Continued) d. The annual required contributions, pension expense, net pension liability and corresponding deferred outflows of resources and deferred inflows of resources for the City’s public defined benefit plans are based on actuarial valuations provided by outside resources. e. The annual required contribution and actuarial accrued liability for the City’s Other Post-Employment Benefit Plan are based on certain actuarial assumptions and methods prepared by an outside consultant. f. Management’s estimate of the claims payable liabilities related to general liability and worker’s compensation claims are based on actuarial valuations. We evaluated the key factors and assumptions used to develop these estimates in determining that they were reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were reported in Note 8 regarding claims payable, Note 10 regarding the CalPERS defined benefit plans, and Note 11 regarding the City’s Other Post-Employment Benefit Plan. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We did not identify any known or likely misstatements that required such communication. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 26, 2017. - 3 - Significant Audit Findings (Continued) Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to management’s discussion and analysis, and the schedules of changes in net pension liability and related ratios, and the schedules of contributions related to the City’s defined benefit plans, which are required supplementary information (RSI) that supplements the financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual non-major fund financial statements and schedules (supplementary information), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the basic financial statements or to the basic financial statements themselves. We were not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on them. - 4 - Upcoming Changes in Accounting Standards and Regulatory Updates Procurement Rules under Uniform Guidance The Uniform Guidance has different procurement rules than those previously required by the Circular A-133. Due to the work required by nonfederal entities to implement these new rules, a two-year grace period was given. In May 2017, an additional one-year grace period was given. Beginning July 1, 2018, nonfederal entities will be required to comply with all of the Uniform Guidance procurement rules. Included in these new rules is the requirement for written policies and procedures. Commencing with the fiscal year 2018-2019 audits, auditors will request the written policies of the nonfederal entity for all single audits and review the procurement policies and procedures for compliance with the Uniform Guidance procurement rules. Other Post-Employment Benefit (OPEB) Standards   In June 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The scope of this statement addresses accounting and financial reporting for post-employment benefits other than pension (other post-employment benefits or OPEB) that is provided to the employees of state and local governmental employers. This statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures for defined benefit and defined contribution plans. This statement requires governments to report a net OPEB liability or asset on the face of the financial statements. The City is required to implement GASB Statement No. 75 in fiscal year ending June 30, 2018. Restriction on Use This information is intended solely for the use of the City Council and management of the City of Newport Beach and is not intended to be, and should not be, used by anyone other than these specified parties. Irvine, California December 26, 2017 ATTACHMENT B AUDITOR’S LETTER “INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS” 2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 Offices located in Orange and San Diego Counties INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and Members of City Council City of Newport Beach Newport Beach, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Newport Beach, California (the City), as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 26, 2017. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies, and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described below that we consider to be a significant deficiency. Significant Deficiency – Deferred Outflows of Resources – Pension Contributions During our analysis of the current year calculations of the estimated net pension liability and related deferred outflows and inflows of resources for City’s defined benefit pension plans, we noted that the City had made a prior period adjustment to correct the deferred outflow of resources related to employer contributions made during fiscal year 15-16 that were subsequent to the net pension liability measurement date of June 30, 2015. We recommend that the City implement procedures to ensure that employer contributions made subsequent to the measurement date are recorded accurately in the City’s general ledger and are reconciled to the records of such contributions maintained by the California Public Employees’ Retirement System. City’s Response The City concurs with the comment and the recommendation. The City inadvertently included prior period retroactive adjustments in the amount reported for the employer contributions made during fiscal year 15-16 subsequent to the net pension liability measurement date of June 30, 2015. CalPERS does not consider prior period retroactive adjustments as part of employer contributions for fiscal year 15-16. Going forward, staff will make sure not to include any prior period adjustments in amounts reported for employer contributions. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City’s Responses to Findings The City’s responses to the finding identified in our audit is described above. The City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Irvine, California December 26, 2017 NEWPORT BEACH FIRE DEPARTMENT FY2017 BUDGET PERFORMANCE CHIP DUNCAN, FIRE CHIEF Item No. 5B1 Review of the Fire Department Budget to Actual Results Staff Presentation March 15, 2018 EXPENDITURE TYPE BY PROPORTION 82.7% 16.5% 0.9% SALARIES & BENEFITS $37.83M M&O $7.54M CAPITAL OUTLAY $390K SALARIES AND BENEFITS M&O CAPITAL OUTLAY FY2017 BUDGET PERFORMANCE Budget Actuals % Used SALARIES & BENEFITS $37,826,571 $37,181,086 98% M&O $7,540,563 $7,067,026 94% CAPITAL OUTLAY $389,988 $374,881 96% TOTAL $45,757,122 $44,622,993 97.5% UNEXPENDED BALANCE $1,134,129 MANAGING THE BUDGET -PERSONNEL Fire Operations/EMS •Constant Staffing •On-Duty & In-House Training •Overages Offset by Salary Savings & Revenue (Strike Teams & Special Events) Marine Operations •Dynamic Staffing •On-Duty & In-House Training FY2017 SALARIES AND BENEFITS Budget Actuals Balance % Used SALARIES $18,065,964 $17,618,558 $447,406 97.5% OVERTIME $4,269,213 $5,376,463 ($1,107,250)125.9% BENEFITS $15,491,394 $14,186,065 $1,305,329 91.6% TOTAL $37,826,571 $37,181,086 $645,485 98.3% MANAGING THE BUDGET –CHECKS & BALANCES Assistant Chiefs– •Plan and Approve Purchases •Review Travel & Training Requests Administrative Manager – •Contract Management •Bid/Purchasing Oversight •Review and Approve All Invoice Payments •Oversight of Purchasing Card Transactions Initiatives – •Preventative Maintenance -Equipment and Facilities •Extended Warranties on Costly Equipment •Creation of ISF for Equipment Replacement •Joint Dispatch JPA (Metro Net) FY2017 REVENUE ACTUALS STRIKE TEAM REIMBURSEMENT $196,010 SANTA ANA COLLEGE $39,656 FALSE ALARM FINES $34,830 MEDI-CAL GEMT & IGT $391,080 PARAMEDIC SUBSCRIPTIONS $292,327 PARAMEDIC SERVICES $3,563,727 JUNIOR LIFEGUARDS $1,023,568 OTHER $6,318 TOTAL $5,547,521 FUTURE CHALLENGES •Airport Development •Fire Prevention •Marine Operations supporting Harbor Operations •Increasing Call Volumes •Expansion of Paramedic Services QUESTIONS? 4 La s t  Up d a t e d 3 / 7 / 2 0 1 8 Start S t a r t Est. Project D a t e D a t e Pr i o r i t y  Pr o j e c t s C o s t ( D e s i g n ) ( C o n s t r u c t i o n ) 8 FS  5  ‐   CD M  (&  Li b r a r y ) 8 , 5 0 0 , 0 0 0             2016 2 0 1 7 50 FS  2  ‐   La n d  Pu r c h a s e 4 , 0 0 0 , 0 0 0             2017 2 0 1 8 5 FS  2  ‐   Lid o   7,461,200             2017 2 0 1 8 13 Ne w p o r t  Jr .  Gu a r d  Bu i l d i n g ‐                       2018 2 0 1 9 25 Su n s e t  Vie w  Pa r k  w/ P e d  Br i d g e s  & Dog  Park  8,629,431             2018 2 0 2 0 51 Gr a n t  Ho w a l d  Pa r k  Sp o r t  Fi e l d  Re h a b i l i t a t i o n  6,192,121             2019 2 0 2 1 3 FS  1  ‐   Pe n i n s u l a  (&  Li b r a r y ) 5 , 2 9 8 , 3 0 2             2020 2 0 2 2 37 Gir l s  & Bo y s  Clu b  (E a s t  Blu f f  Pa r k ) ‐                       2020 2 0 2 2 6 FS  3  ‐   Sa n t a  Ba r b a r a 9 , 5 0 9 , 4 8 6             2022 2 0 2 5 6 1 2 ** * * * * * * Total 4 9 , 5 9 0 , 5 4 0           3 4 Ke y  Me t r i c T a r g e t M a x De b t  Sv c  as  % of  Re v e n u e s N A <  8.0% Mi n i m u m  FF P  Re s e r v e  Ba l a n c e  (0 0 0 ' s ) $ 8 , 2 1 6 N A Ke y  St a t i s t i c s M i n M a x A v g GF  Co n t r i b u t i o n  to  FF P  (0 0 0 ' s ) $ 8 , 0 0 0 $ 9 , 2 7 4 $ 8 , 6 0 1 De b t  Se r v i c e  (0 0 0 ' s ) $ 7 , 5 3 3 $ 8 , 2 1 6 $ 7 , 7 6 4 GF  Co n t r i b u t i o n s  to  FF P  as  % Re v 3 . 0 0 % 4 . 2 % 3 . 4 % De b t  Sv c  as  % of  Re v e n u e s 2 . 4 4 % 4 . 0 % 3 . 1 % 5 6 F F P  Ba l a n c e  (0 0 0 ' s ) $ 1 5 , 3 2 0 $ 5 2 , 2 2 2 $ 3 0 , 6 2 2 Ke y  St a t i s t i c s M i n M a x A v g GF  Co n t r i b u t i o n  to  FF P  (0 0 0 ' s ) $ 8 , 5 0 0 $ 1 3 , 4 9 7 $ 1 0 , 0 1 0 De b t  Se r v i c e  (0 0 0 ' s ) $ 0 $ 8 , 2 1 6 $ 6 , 3 5 8 GF  Co n t r i b u t i o n s  to  FF P  as  % Re v 3 . 0 0 % 4 . 2 % 3 . 2 % De b t  Sv c  as  % of  Re v e n u e s 0 . 0 0 % 4 . 0 % 2 . 3 % FF P    Re s e r v e  Ba l a n c e  (0 0 0 ' s ) $ 3 0 , 6 4 4 $ 7 4 , 3 1 3 $ 3 5 , 1 1 6 7 8 Re m a i n i n g  De b t  Ca p a c i t y  (D b t .  Sv c  < or  = 8% of  GF  Rev):132.6 $            Million CI T Y  OF  NE W P O R T  BE A C H  FA C I L I T I E S  FI N A N C I A L  PL A N N I N G  DA S H B O A R D 30  YearCouncil Debt  Mgmt  Policy  (F ‐6)15  Year 0. 0 0 % 1. 0 0 % 2. 0 0 % 3. 0 0 % 4. 0 0 % 5. 0 0 % 6. 0 0 % 7. 0 0 % 8. 0 0 % 9. 0 0 % 10 . 0 0 % 2 0 1 5 2 0 1 7 2 0 1 9 2 0 2 1 2 0 2 3 2 0 2 5 2 0 2 7 2 0 2 9 2 0 3 1 2 0 3 3 2 0 3 5 2 0 3 7 2 0 3 9 2 0 4 1 2 0 4 3 2 0 4 5 GF  Co n t r i b u t i o n  to  FF P   as  a  Pe r c e n t  of  GF  Re v e n u e GF  Co n t r i b u t i o n  % Bu d g e t De b t  Se r v i c e  ‐   as  % of  Re v e n u e s $0 $2 , 0 0 0 , 0 0 0 $4 , 0 0 0 , 0 0 0 $6 , 0 0 0 , 0 0 0 $8 , 0 0 0 , 0 0 0 $1 0 , 0 0 0 , 0 0 0 $1 2 , 0 0 0 , 0 0 0 $1 4 , 0 0 0 , 0 0 0 2 0 1 5 2 0 1 7 2 0 1 9 2 0 2 1 2 0 2 3 2 0 2 5 2 0 2 7 2 0 2 9 2 0 3 1 2 0 3 3 2 0 3 5 2 0 3 7 2 0 3 9 2 0 4 1 2 0 4 3 2 0 4 5 GF  Co n t r i b u t i o n  to  FF P  Co m p a r e d   to  De b t  Se r v i c e GF  Co n t r i b u t i o n  to  FF P De b t  Se r v i c e  ‐  10 , 0 0 0 , 0 0 0  20 , 0 0 0 , 0 0 0  30 , 0 0 0 , 0 0 0  40 , 0 0 0 , 0 0 0  50 , 0 0 0 , 0 0 0  60 , 0 0 0 , 0 0 0  70 , 0 0 0 , 0 0 0  80 , 0 0 0 , 0 0 0  90 , 0 0 0 , 0 0 0 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 2 0 3 6 2 0 3 7 2 0 3 8 2 0 3 9 2 0 4 0 2 0 4 1 2 0 4 2 2 0 4 3 2 0 4 4 2 0 4 5 FF P  Re s e r v e  Ba l a n c e  ‐  10 , 0 0 0 , 0 0 0  20 , 0 0 0 , 0 0 0  30 , 0 0 0 , 0 0 0  40 , 0 0 0 , 0 0 0  50 , 0 0 0 , 0 0 0 2 0 1 7 2 0 1 9 2 0 2 1 2 0 2 3 2 0 2 5 2 0 2 7 2 0 2 9 2 0 3 1 2 0 3 3 2 0 3 5 2 0 3 7 2 0 3 9 2 0 4 1 2 0 4 3 2 0 4 5 Pr o j e c t  Fu n d i n g Ca s h  Fu n d e d  Co n s t r u c t i o n De b t  Fu n d e d  Co n s t r u c t i o n  ‐  5, 0 0 0 , 0 0 0  10 , 0 0 0 , 0 0 0  15 , 0 0 0 , 0 0 0  20 , 0 0 0 , 0 0 0  25 , 0 0 0 , 0 0 0  30 , 0 0 0 , 0 0 0  35 , 0 0 0 , 0 0 0  40 , 0 0 0 , 0 0 0  45 , 0 0 0 , 0 0 0 2 0 1 7 2 0 1 9 2 0 2 1 2 0 2 3 2 0 2 5 2 0 2 7 2 0 2 9 2 0 3 1 2 0 3 3 2 0 3 5 2 0 3 7 2 0 3 9 2 0 4 1 2 0 4 3 2 0 4 5 Pr o j e c t  Ex p e n d i t u r e s  ‐  5, 0 0 0 , 0 0 0  10 , 0 0 0 , 0 0 0  15 , 0 0 0 , 0 0 0  20 , 0 0 0 , 0 0 0  25 , 0 0 0 , 0 0 0  30 , 0 0 0 , 0 0 0  35 , 0 0 0 , 0 0 0  40 , 0 0 0 , 0 0 0 2 0 1 5 2 0 1 7 2 0 1 9 2 0 2 1 2 0 2 3 2 0 2 5 2 0 2 7 2 0 2 9 2 0 3 1 2 0 3 3 2 0 3 5 2 0 3 7 2 0 3 9 2 0 4 1 2 0 4 3 2 0 4 5 De b t  Se r v i c e  Ca p a c i t y Ma x  De b t  Se r v i c e  ‐   8%  of  Re v e n u e s De b t  Se r v i c e 0. 0 0 % 1. 0 0 % 2. 0 0 % 3. 0 0 % 4. 0 0 % 5. 0 0 % 6. 0 0 % 7. 0 0 % 8. 0 0 % 9. 0 0 % 10 . 0 0 % 2 0 1 5 2 0 1 7 2 0 1 9 2 0 2 1 2 0 2 3 2 0 2 5 2 0 2 7 2 0 2 9 2 0 3 1 2 0 3 3 2 0 3 5 2 0 3 7 2 0 3 9 2 0 4 1 2 0 4 3 2 0 4 5 De b t  Se r v i c e  as  % of  GF  Re v e n u e s De b t  Se r v i c e  ‐   as  % of  Re v e n u e s  ‐  5,0 0 0 , 0 0 0  10 , 0 0 0 , 0 0 0  15 , 0 0 0 , 0 0 0  20 , 0 0 0 , 0 0 0  25 , 0 0 0 , 0 0 0  30 , 0 0 0 , 0 0 0  35 , 0 0 0 , 0 0 0 20 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 An n u a l  GF  Co n t r i b u t i o n s Pe r i o d i c  GF  or  On e ‐tim e  Tr a n s f e r s Pr i v a t e    Co n t r i b u t i o n s In t e r e s t  Ea r n i n g s Ca s h  Co n t r i b u t i o n s Pr o j e c t   Total I n t e r e s t   De b t  Se r v i c e  De s c r i p t i o n Y e a r P r o c e e d s C O I I s s u e R a t e T e r m M a t u r i t y 20 1 0  Ci v i c  Ce n t e r  CO P s   20 1 1 1 2 3 , 0 0 0 , 0 0 0           1,289,442   124,289,442     4.4% 3 0 2 0 4 1 Tr a u n c h  2 0 ‐                                             ‐                ‐                      5.0% 3 0 3 0 Tr a u n c h  3 0 ‐                                             ‐                ‐                      5.0% 3 0 3 0 GF c o n t r i b u t i o n s e q u a l t o $ 8 . 5 m / y e a r ( l e v e l d o l l a r ) GF c o n t r i b u t i o n s e q u a l t o 3 % o f a n n u a l G e n e r a l F u n d r e v e n u e GF c o n t r i b u t i o n s e q u a l t o 5 % o f a n n u a l G e n e r a l F u n d r e v e n u e GF c o n t r i b u t i o n s e q u a l t o 3 % G F R e v b u t n o t < t h a n $ 8 . 5 M 1  of  4 3/ 7 / 2 0 1 8 Ac t i v e  Pr o j e c t s YR R e p l E s t  $ C u r r e n t  Ag e : U s e f u l Y e a r s  to C o s t  Es t . P r o j e c t F Y  Design  Start F Y  Const  Start F V  Cost  Est  @ P r i v a t e N e t  Proposed Pr o j N o F u n c t i o n P r o j e c t B u i l t S q  Ft / S q  Ft 2 0 1 8 L i f e S t a r t D a t e E s t i m a t e Y e a r Y e a r 2 . 5 %  Growth C o n t r i b t i o n s C o s t 1 G e n  Go v C i v i c  Ce n t e r 2 0 1 3 1 0 0 , 0 0 0            67 5                            5 6 0 5 5 J u n ‐13 6 7 , 5 0 0 , 0 0 0                2070 2 0 7 3 ‐                      ‐                       4 G e n  Go v C o u n c i l  Ch a m b e r s 2 0 1 3 2 9 , 0 0 0                67 5                            5 6 0 5 5 J u n ‐13 1 9 , 5 7 5 , 0 0 0                2070 2 0 7 3 ‐                      ‐                       41 G e n  Go v C i v i c  Ce n t e r  Pa r k i n g  St r u c t u r e 2 0 1 3 4 5 0                          16 , 0 0 0                5 6 0 5 5 J u n ‐13 7 , 2 0 0 , 0 0 0                    2070 2 0 7 3 ‐                      ‐                       2 P o l i c e P o l i c e  St a t i o n  at  Co r p o r a t e  Ya r d   19 7 3 6 0 , 0 0 0                80 0                            45 5 0 1 7 N / A 4 8 , 0 0 0 , 0 0 0                2032 2 0 3 5 7 3 , 0 3 7 , 6 7 7        73,037,677         40 M u n i c i p a l  Op e r a t i o n s B i g  Ca n y o n  Au x .  Ya r d 2 0 1 5 9 , 0 0 0                    57 5                            3 5 0 5 1 M a y ‐12 ‐                                            2062 2 0 6 5 ‐                      50 F i r e F S  2  ‐   La n d  Pu r c h a s e ** 4 , 0 0 0 , 0 0 0                    2017 2 0 1 8 4 , 0 0 0 , 0 0 0          4,000,000           3 F i r e F S  1  ‐   Pe n i n s u l a  (&  Li b r a r y ) 1 9 6 2 6 , 0 0 0                    80 0                            56 5 0 4 M a r ‐18 4 , 8 0 0 , 0 0 0                    2020 2 0 2 2 5 , 2 9 8 , 3 0 2          5,298,302           5 F i r e F S  2  ‐   Li d o   19 5 2 1 1 , 5 0 0                80 0                            66 5 0 0 M a r ‐14 7,461,200                    2017 2 0 1 8 7 , 4 6 1 , 2 0 0          7,461,200           6 F i r e F S  3  ‐   Sa n t a  Ba r b a r a 1 9 7 1 1 0 , 0 0 0                80 0                            47 5 0 7 M a r ‐14 8 , 0 0 0 , 0 0 0                    2022 2 0 2 5 9 , 5 0 9 , 4 8 6          9,509,486           7 F i r e F S  4  ‐   Ba l b o a  Is l a n d   19 9 4 4 , 4 0 0                    80 0                            24 5 0 2 6 M a r ‐14 3 , 5 2 0 , 0 0 0                    2041 2 0 4 4 6 , 6 8 9 , 0 3 0          6,689,030           8 F i r e F S  5  ‐   CD M  (&  Li b r a r y ) 1 9 5 0 1 0 , 0 0 0                80 0                            68 5 0 ‐1 M a r ‐14 8 , 5 0 0 , 0 0 0                    2016 2 0 1 7 8,500,000          8,500,000           9 F i r e F S  6  ‐   Ma r i n e r s  (a p p a r a t u s  ba y  on l y ) 2 0 1 8 1 , 5 0 0                    67 5                            05 0 ‐1 M a r ‐14 1,106,101                    2016 2 0 1 7 1,106,101          1,106,101           47 F i r e F S  6  ‐   Ma r i n e r s  (L i v i n g  Ar e a  Re b u i l d ) 1 9 5 7 3 , 0 0 0                    80 0                            61 7 2 , 4 0 0 , 0 0 0                    2024 2 0 2 5 2 , 8 5 2 , 8 4 6          2,852,846           10 F i r e F S  7  ‐   SA H 2 0 0 7 6 , 5 0 0                    80 0                            11 5 0 3 9 M a r ‐14 5 , 2 0 0 , 0 0 0                    2054 2 0 5 7 1 3 , 6 2 1 , 7 8 7        13,621,787         11 F i r e F S  8  ‐   Np t .  Co a s t 1 9 9 5 1 1 , 0 2 7                80 0                            23 5 0 2 7 M a r ‐14 8 , 8 2 1 , 6 0 0                    2042 2 0 4 5 1 7 , 1 8 2 , 7 1 3        17,182,713         12 F i r e L i f e g u a r d  HQ  Re p l a c e m e n t 5 , 5 0 0                    80 0                            ** 2 5 2 2 M a r ‐14 4 , 4 0 0 , 0 0 0                    2038 2 0 4 0 7 , 5 7 4 , 9 1 4          7,574,914           13 F i r e N e w p o r t  Jr .  Gu a r d  Bu i l d i n g 0 2 , 2 2 5                    57 5                            ** 1 2 , 0 0 0 , 0 0 0                    2018 2 0 1 9 2 , 0 5 0 , 0 0 0          2,050,000           ‐                       15 L i b r a r y L i b r a r y ‐Ba l b o a  (C o n s t r u c t  w/  FS ‐1) 1 9 6 2 3 , 0 0 0                    70 0                            56 5 0 4 4 J a n ‐12 ‐                                            2059 2 0 6 2 ‐                      ‐                       16 L i b r a r y L i b r a r y ‐CD M    (C o n s t r u c t  w/  FS ‐5) 1 9 5 8 3 , 8 0 0                    70 0                            60 5 0 0 J a n ‐12 ‐                                            2016 2 0 1 8 ‐                      ‐                       17 L i b r a r y L i b r a r y ‐Ma r i n e r s 2 0 0 6 1 5 , 3 0 5                57 5                            12 5 0 3 8 J a n ‐12 ‐                                            2053 2 0 5 6 ‐                      ‐                       18 L i b r a r y L i b r a r y ‐Ce n t r a l 1 9 9 7 6 5 , 0 0 0                57 5                            21 5 0 3 4 J a n ‐12 3 7 , 3 7 5 , 0 0 0                2049 2 0 5 2 8 6 , 5 3 5 , 1 6 5        86,535,165         20 R e c  Fa c i l i t y M a r i n a  Pa r k   20 1 5 2 2 , 0 0 0                57 5                            3 5 0 4 7 J a n ‐12 1 2 , 6 5 0 , 0 0 0                2062 2 0 6 5 4 0 , 3 7 4 , 9 6 9        40,374,969         21 R e c  Fa c i l i t y N e w p o r t  Co a s t  Ct r 2 0 0 7 1 6 , 8 6 5                57 5                            11 5 0 3 9 J a n ‐12 9 , 6 9 7 , 3 7 5                    2054 2 0 5 7 2 5 , 4 0 2 , 9 9 6        25,402,996         22 R e c  Fa c i l i t y N e w p o r t  Th e a t r e  Ar t s  Ce n t e r 1 9 7 3 1 2 , 0 0 0                57 5                            45 5 0 1 2 J a n ‐12 6 , 9 0 0 , 0 0 0                    2027 2 0 3 0 9 , 2 7 9 , 7 3 3          4,639,866          4,639,866           23 R e c  Fa c i l i t y O A S I S  Sr .  Ct r 2 0 1 0 4 3 , 2 3 2                57 5                            8 6 0 4 2 J a n ‐12 2 4 , 8 5 8 , 4 0 0                2057 2 0 6 0 7 0 , 1 2 5 , 4 2 7        70,125,427         25 R e c  Fa c i l i t y S u n s e t  Vi e w  Pa r k  w/ P e d  Br i d g e s  & Do g  Pa r k   0N A * * ∞ 2 M a r ‐14 1 0 , 4 5 0 , 0 0 0                2018 2 0 2 0 1 0 , 9 7 9 , 0 3 1        2,349,600          8,629,431           29 R e c  Fa c i l i t y B o n i t a  Cr e e k  ‐   Ar t i f i c i a l  Tu r f 2 0 1 5 N A 8                                    3 1 0 7 J a n ‐12 2 , 0 0 0 , 0 0 0                    2025 2 0 2 5 2 , 3 7 7 , 3 7 2          2,377,372           33 R e c  Fa c i l i t y C o m m u n i t y  Yo u t h  Ce n t e r  (C Y C )  ‐   Gr a n t  Ho w a l d 1 9 8 8 5 , 1 4 6                    57 5                            30 5 0 1 4 J a n ‐12 2 , 9 5 8 , 9 5 0                    2029 2 0 3 2 4 , 1 8 0 , 9 1 9          4,180,919           34 R e c  Fa c i l i t y C a r o l l  Be e k  Ce n t e r 1 9 8 0 1 , 5 5 5                    57 5                            38 5 0 1 5 J a n ‐12 8 9 4 , 1 2 5                            2030 2 0 3 3 1 , 2 9 4 , 9 6 0          1,294,960           35 R e c  Fa c i l i t y B o n i t a  Cr e e k  Co m m u n i t y  Ct r . 1 9 8 8 2 , 8 7 6                    57 5                            30 5 0 2 0 J a n ‐12 1 , 6 5 3 , 7 0 0                    2035 2 0 3 8 2 , 7 0 9 , 7 8 0          2,709,780           36 R e c  Fa c i l i t y C l i f f  Dr i v e  Co m m u n i t y  Ro o m 1 9 6 0 7 5 0                          57 5                            58 5 0 1 8 J a n ‐12 4 3 1 , 2 5 0                            2033 2 0 3 6 6 7 2 , 6 0 3             672,603              37 R e c  Fa c i l i t y G i r l s  & Bo y s  Cl u b  (E a s t  Bl u f f  Pa r k ) 1 9 6 5 1 1 , 8 0 0                57 5                            53 5 0 4 J a n ‐12 6 , 7 8 5 , 0 0 0                    2020 2 0 2 2 7 , 4 8 9 , 3 7 0          7,489,370           ‐                       51 R e c  Fa c i l i t y G r a n t  Ho w a l d  Pa r k  Sp o r t  Fi e l d  Re h a b i l i t a t i o n   ** 5 0 3 M a r ‐18 5 , 7 5 0 , 0 0 0                    2019 2 0 2 1 6 , 1 9 2 , 1 2 1          6,192,121           38 R e c  Fa c i l i t y L a w n  Bo w l i n g  Fa c i l i t y  (S a n  Jo a q u i n  Hi l l s  Pa r k ) 1 9 7 4 2 , 7 5 0                    57 5                            44 5 0 2 1 M a r ‐14 1 , 5 8 1 , 2 5 0                    2036 2 0 3 9 2 , 6 5 5 , 8 3 9          2,655,839          326,468,951            429,154,339     16,528,837        412,625,502      Re c e n t l y  Re m o v e d  fr o m  Ac t i v e  Li s t Mu n i c i p a l  Op e r a t i o n s U t i l i t i e s / C o r p o r a t e  Ya r d  Me r g e ‐  Ph a s e  I * * 5 0 2 M a y ‐12 4 , 0 0 0 , 0 0 0                            2018 2 0 2 0 4 , 2 0 2 , 5 0 0             4,202,500              Re c  Fa c i l i t y S u n s e t  Ri d g e 2 0 1 4 N A 4 ∞‐ 4 J a n ‐12 ‐                                                    2014 2 0 1 4 8 , 0 2 0 , 7 5 4             8,020,754              Re c  Fa c i l i t y L o w e r  Ca s t a w a y s  ‐   Pa r k ** ∞ 4 4 , 0 0 0 , 0 0 0                            2019 2 0 2 2 4 , 4 1 5 , 2 5 2             4,415,252              ‐                          Re c  Fa c i l i t y E a s t b l u f f  Pa r k  Ex t e n s i o n 2 0 1 6 N A 2 ∞‐ 2 J a n ‐12 ‐                                                    2013 2 0 1 6 ‐                         ‐                          Re c  Fa c i l i t y W e s t  Ne w p o r t  Co m m  Ct r  (i n c l  po o l ) 2 0 1 7 2 5 , 0 0 0                    57 5                                1 5 0 2 J a n ‐12 ‐                                                    2018 2 0 2 0 ‐                         ‐                          Re c  Fa c i l i t y N e w p o r t  Pi e r  Re s t a u r a n t ‐                         ‐                          FF P  Pr o j e c t  Pl a n n i n g 2  of  4 12 3 4 5 6 7 8 9 1 0 20 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 AF F O R D A B I L I T Y  AS S U M P T I O N s Ge n e r a l  Fu n d  Re v e n u e s 2 0 4 , 3 7 4 , 3 4 4                             21 0 , 5 0 5 , 5 7 4                                  21 6 , 8 2 0 , 7 4 2                                 22 3 , 3 2 5 , 3 6 4                                 23 0 , 0 2 5 , 1 2 5                             23 6 , 9 2 5 , 8 7 8                               24 4 , 0 3 3 , 6 5 5                             25 1 , 3 5 4 , 6 6 4                                  258,895,304                              266,662,164                   GF  Re v e n u e  Gr o w t h  As s u m p t i o n 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % FF P  Co n t r i b u t i o n s  @  3%  of  GF  Re v e n u e s 6 , 1 3 1 , 2 3 0                                        6,3 1 5 , 1 6 7                                         6,5 0 4 , 6 2 2                                         6, 6 9 9 , 7 6 1                                          6, 9 0 0 , 7 5 4                                        7,1 0 7 , 7 7 6                                          7, 3 2 1 , 0 1 0                                        7, 5 4 0 , 6 4 0                                         7,766,859                                       7,999,865                       GF  An n u a l  Co n t r i b u t i o n  % of  Re v e n u e  (a s s u m i n g  $8 . 5  M/ y r ) 4 . 1 6 % 4 . 0 4 % 3 . 9 2 % 3 . 8 1 % 3 . 7 0 % 3 . 5 9 % 3 . 4 8 % 3 . 3 8 % 3 . 2 8 % 3 . 1 9 % De b t  Se r v i c e  as  % of  GF  Re v e n u e s 3 . 9 9 % 3 . 9 0 % 3 . 7 9 % 3 . 6 4 % 3 . 3 4 % 3 . 2 4 % 3 . 1 4 % 3 . 0 4 % 2 . 9 4 % 2 . 8 5 % FF P  SO U R C E S 8, 5 0 0 , 0 0 0                                       8,5 0 0 , 0 0 0                                          8,5 0 0 , 0 0 0                                         8, 5 0 0 , 0 0 0                                         8, 5 0 0 , 0 0 0                                       8,5 0 0 , 0 0 0                                          8, 5 0 0 , 0 0 0                                       8, 5 0 0 , 0 0 0                                          8,500,000                                        8,500,000                       Be g i n n i n g  FF P  Ba l a n c e 1 7 , 7 0 9 , 2 2 1                                   30 , 6 4 3 , 8 5 1                                      28 , 3 5 3 , 4 5 8                                     15 , 3 2 0 , 4 7 8                                     21 , 2 5 8 , 9 4 3                                   17 , 4 0 7 , 4 9 7                                    16 , 5 4 0 , 0 4 9                                   16 , 2 4 4 , 1 2 2                                      18,354,811                                    19,121,396                     So u r c e s An n u a l  GF  Co n t r i b u t i o n s 8 , 5 0 0 , 0 0 0                                       8,5 0 0 , 0 0 0                                          8,5 0 0 , 0 0 0                                         8, 5 0 0 , 0 0 0                                         8, 5 0 0 , 0 0 0                                       8,5 0 0 , 0 0 0                                          8, 5 0 0 , 0 0 0                                       8, 5 0 0 , 0 0 0                                          8,500,000                                        8,500,000                       Pe r i o d i c  GF  or  On e ‐tim e  Tr a n s f e r s  In 2 , 6 2 6 , 4 3 3                                       99 , 6 4 4                                                      Pr i v a t e   Co n t r i b u t i o n s 1 9 , 6 6 8 , 6 5 5                                   1,2 7 9 , 9 5 2                                          3,1 9 9 , 6 2 5                                         10 , 0 0 8 , 6 4 9                                     65 2 , 1 8 6                                             66 8 , 5 1 2                                                68 5 , 8 3 5                                             70 2 , 4 5 2                                                720,069                                              29,883,431                     In t e r e s t  Ea r n i n g s 4 0 , 4 5 8                                                 64 , 4 1 8                                                      90 , 8 8 8                                                     38 3 , 0 1 2                                               63 7 , 7 6 8                                             56 5 , 7 4 4                                                57 8 , 9 0 2                                             56 8 , 5 4 4                                                642,418                                              669,249                          To t a l  So u r c e s : 3 0 , 8 3 5 , 5 4 6                                   9,9 4 4 , 0 1 4                                          11 , 7 9 0 , 5 1 3                                     18 , 8 9 1 , 6 6 1                                     9, 7 8 9 , 9 5 4                                       9,7 3 4 , 2 5 6                                          9, 7 6 4 , 7 3 7                                       9, 7 7 0 , 9 9 7                                          9,862,487                                        39,052,680                     Us e s De b t  Se r v i c e ( 8 , 1 6 2 , 4 0 6 )                                   (8 , 2 1 5 , 5 5 0 )                                        (8 , 2 1 0 , 6 6 1 )                                       (8 , 1 3 8 , 8 4 1 )                                       (7 , 6 8 8 , 2 7 8 )                                   (7 , 6 7 6 , 6 3 8 )                                      (7 , 6 6 5 , 4 2 8 )                                   (7 , 6 4 9 , 3 0 8 )                                        (7,610,933)                                    (7,603,024)                     De b t  Fu n d i n g Ot h e r  Fis c a l  Ch a r g e s ( 2 , 6 3 2 )                                                   (1 1 , 0 0 0 )                                                  (1 1 , 0 0 0 )                                                 (1 1 , 0 0 0 )                                                 (1 1 , 0 0 0 )                                               (1 1 , 0 0 0 )                                                  (1 1 , 0 0 0 )                                               (1 1 , 0 0 0 )                                                  (11,000)                                                (11,000)                          Pr o j e c t  Us e s ( 9 , 7 3 5 , 8 7 8 )                                   (4 , 0 0 7 , 8 5 7 )                                        (1 6 , 6 0 1 , 8 3 2 )                                 (4 , 8 0 3 , 3 5 6 )                                       (5 , 9 4 2 , 1 2 1 )                                   (2 , 9 1 4 , 0 6 6 )                                      (2 , 3 8 4 , 2 3 6 )                                   ‐                                                                  (1,473,969)                                    (8,106,837)                     To t a l  Us e s : ( 1 7 , 9 0 0 , 9 1 6 )                               (1 2 , 2 3 4 , 4 0 7 )                                  (2 4 , 8 2 3 , 4 9 3 )                                 (1 2 , 9 5 3 , 1 9 7 )                                 (1 3 , 6 4 1 , 3 9 9 )                               (1 0 , 6 0 1 , 7 0 4 )                                  (1 0 , 0 6 0 , 6 6 4 )                               (7 , 6 6 0 , 3 0 8 )                                        (9,095,902)                                    (15,720,861)                        Pr o j e c t e d  FF P  Ba l a n c e   30 , 6 4 3 , 8 5 1                       28 , 3 5 3 , 4 5 8                            15 , 3 2 0 , 4 7 8                           21 , 2 5 8 , 9 4 3                           17 , 4 0 7 , 4 9 7                       16 , 5 4 0 , 0 4 9                          16 , 2 4 4 , 1 2 2                       18 , 3 5 4 , 8 1 1                            19,121,396             42,453,215                So u r c e s  an d  Us e s  Pr o f o r m a      AC T I V E S C E N A R I O   FO R M U L A ,  DO  NO T  ED I T   FO R M U L A I C  EN T R Y  OF  AN N U A L  GF  CO N R I B U T I O N S ,    ED I T   ON L Y  IF  CO N T R I B U T I O N  ST A N D A R D  OF  $8 . 5 M  CH A N G E S 3  of  4 DE V E L O P M E N T  AG R E E M E N T S  AN D  PR I V A T E  CO N T R I B U T I O N S Ge n e r a l T O T A L N o n  FF P 1 2 3 4 5 6 7 8 9 1 0 Pu b l i c P a r k P u b l i c  Ar t s F F P T r a f f i c A m o u n t 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 Ag r e e m e n t R E F D e s c r i p t i o n T r i g g e r B e n e f i t B e n e f i t &  Cu l t u r e B E N E F I T C i r c u l a t i o n O t h e r T o t a l P a i d Ho a g  OA S I S  Pl e d g e Ma y    12 ,  20 0 9  Ple d g e  Le t t e r P a y m e n t  Sc h e d u l e 5 0 0 , 0 0 0                                       ‐                                                        ‐                                                 50 0 , 0 0 0                                         ‐                                               ‐                                 50 0 , 0 0 0                                          50 0 , 0 0 0                     Ho a g  OA S I S  Pl e d g e Ma y    12 ,  20 0 9  Ple d g e  Le t t e r P a y m e n t  Sc h e d u l e 5 0 0 , 0 0 0                                       ‐                                                        ‐                                                 50 0 , 0 0 0                                         ‐                                               ‐                                 50 0 , 0 0 0                                          50 0 , 0 0 0                     Ho a g  OA S I S  Pl e d g e Ma y    12 ,  20 0 9  Ple d g e  Le t t e r P a y m e n t  Sc h e d u l e 1 , 5 0 0 , 0 0 0                                 ‐                                                        ‐                                                 1, 5 0 0 , 0 0 0                                   ‐                                               ‐                                 1,5 0 0 , 0 0 0                                    1,5 0 0 , 0 0 0               2,5 0 0 , 0 0 0                                 ‐                                                        ‐                                                 2, 5 0 0 , 0 0 0                                   ‐                                               ‐                                 2,5 0 0 , 0 0 0                                    2,5 0 0 , 0 0 0               Fr i e n d s  of  Oa s i s  Pl e d g e Oa s i s  Co n s t r u c t i o n R e s t r i c t e d  fo r  Oa s i s  On l y 2 , 0 0 0 , 0 0 0                                 ‐                                                        ‐                                                 2, 0 0 0 , 0 0 0                                   ‐                                               ‐                                 2,0 0 0 , 0 0 0                                   2,0 0 0 , 0 0 0               No r t h  Ne w p o r t  Ce n t e r 4.1 I n  Lie u  Pa r k  Fe e s P a i d   wit h i n  5  Da y s  of  Aw a r d  of  OA S I S  Co n t r a c t ‐                                                         5,6 0 0 , 0 0 0                                5, 6 0 0 , 0 0 0                                   5,6 0 0 , 0 0 0                                   5,6 0 0 , 0 0 0               No r t h  Ne w p o r t  Ce n t e r 4.1 I n  Lie u  Pa r k  Fe e s  43 0  $$ 2 6 , 0 4 6 . 5 1 M i l e s t o n e  Pm t s ‐                                                         5,6 0 0 , 0 0 0                                5, 6 0 0 , 0 0 0                                   5,6 0 0 , 0 0 0                                   5,6 0 0 , 0 0 0               No r t h  Ne w p o r t  Ce n t e r  T2 4.1 9 4  Un i t s  x  $2 6 , 0 4 6 . 5 1 M i l e s t o n e  Pm t s 2 , 4 4 8 , 3 7 2                                2, 4 4 8 , 3 7 2                                   2,4 4 8 , 3 7 2                                    2,4 4 8 , 3 7 2               ‐                                                   ‐                            No r t h  Ne w p o r t  Ce n t e r 4.2 1 I s s u a n c e  of  Fir s t  Bu i l d i n g  Pe r m i t 1 3 , 5 4 5 , 0 0 0                             ‐                                                        13 , 5 4 5 , 0 0 0                               13 , 5 4 5 , 0 0 0                                13 , 5 4 5 , 0 0 0           No r t h  Ne w p o r t  Ce n t e r 4.2 P u b l i c  Be n e f i t  Fe e  ‐  43 0  Un i t s  @  $3 1 , 5 0 0 I s s u a n c e  of  re m a i n i n g  43 0  Re s i d e n t i a l  Bu i l d i n g  Pe r m i t s 1 3 , 5 4 5 , 0 0 0                             ‐                                                        (2 7 0 , 9 0 0 )                             13 , 2 7 4 , 1 0 0                               13 , 2 7 4 , 1 0 0                                13 , 5 4 5 , 0 0 0           No r t h  Ne w p o r t  Ce n t e r  T2 Am e n d e d  Ag r m t P u b l i c  Be n e f i t  Fe e  ‐  94  Un i t s  @  $6 3 , 0 0 0 I s s u a n c e  of  43 1  st  pe r m i t  ‐  52 4  th  pe r m i t 5 , 9 2 2 , 0 0 0                                 (1 1 8 , 4 4 0 )                             5, 8 0 3 , 5 6 0                                   5,8 0 3 , 5 6 0                                    5,9 2 2 , 0 0 0               No r t h  Ne w p o r t  Ce n t e r 4.4  Str e e t  Wid e n i n g  an d  Tr a f f i c  Sig n a l s W i t h i n  30  Da y s  of  Re i m b u r s e m e n t  Re q u e s t ‐                                                         ‐                                                           2,5 0 0 , 0 0 0                       2,5 0 0 , 0 0 0                                    ‐                                       No r t h  Ne w p o r t  Ce n t e r Am e n d e d  Ag r m t B a y s i d e  Dr i v e  Wa l k w a y  Co n n e c t i o n W i t h i n  90  Da y s  of  wr i t t e n  no t i c e  af t e r  aw a r d  of  co n t r a c t 2 0 0 , 0 0 0                                       20 0 , 0 0 0                                         20 0 , 0 0 0                                          200,000                   33 , 2 1 2 , 0 0 0                             13 , 6 4 8 , 3 7 2                            (3 8 9 , 3 4 0 )                             46 , 4 7 1 , 0 3 2                               2,5 0 0 , 0 0 0                       ‐                                 48 , 9 7 1 , 0 3 2                               48 , 9 7 1 , 0 3 2           Th e  Da r t  De v e l o p m e n t  (2 4  un i t s ) ( P A 2 0 1 2 ‐14 6 )   ‐                                                         60 0 , 8 7 5                                      60 0 , 8 7 5                                         60 0 , 8 7 5                                          52 , 2 5 0                         783,750                      Ne w p o r t  Ba y  Ma r i n a   (2 7  un i t s )  (P A 2 0 0 1 ‐21 0 ) ‐                                                         18 6 , 1 4 7                                      18 6 , 1 4 7                                         18 6 , 1 4 7                                          18 6 , 1 4 7                     Vi a  Lid o  Mi x e d  Us e ( 2  un i t s )  (P A 2 0 1 0 ‐08 1 ) ‐                                                         10 4 , 5 0 0                                      10 4 , 5 0 0                                         10 4 , 5 0 0                                          10 4 , 5 0 0                     22 1 8  Ch a n n e l  Rd . A b e l l  Jo h n  & He l o u  Ca r o l   ‐                                                         26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                               26 , 1 2 5                         Pl a z a  CD M  (6  Un i t s )  (P A 2 0 1 0 ‐06 1 )         ‐                                                         15 6 , 7 5 0                                      15 6 , 7 5 0                                         15 6 , 7 5 0                                          15 6 , 7 5 0                                 21 4  Na r c i s s u s  (1  Un i t s )  (P A 2 0 1 1 ‐19 2 ) ‐                                                         ‐                                                           ‐                                                            60 4  Ac a c i a  Av e  (P A 2 0 1 2 ‐00 5 )   ‐                                                         26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         61 0  La r k s p u r  LL C  (N P 2 0 1 3 ‐00 3 ) ‐                                                         26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         81 9  W.  Ba l b o a  NP 2 0 1 2 ‐01 0 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         50 1 ‐50 7  L  St ( P A 2 0 1 6 ‐01 0 ) 78 , 3 7 5                                          78 , 3 7 5                                               78 , 3 7 5                                                78 , 3 7 5                         78 , 3 7 5                                       41 6  Or c h i d  Av e . ‐                                                         26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         Co h e n  Ga l i n a  ‐   30 9  Go l d e n r o d ‐                                                         26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         11 2  30 t h  St .  MW  (P A 2 0 1 5 ‐14 9 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         15 6 0  Pla c e n t i a  (P A 2 0 1 4 ‐11 0 ) 20 9 , 0 0 0                                      20 9 , 0 0 0                                         20 9 , 0 0 0                                          20 9 , 0 0 0                     11 5  30 t h  St ( P A 2 0 1 4 ‐14 6 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         26 , 1 2 5                                       41 5  38 t h  St ( P A 2 0 0 6 ‐00 5 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         26 , 1 2 5                                       32 3 8  Cla y  (P A 2 0 1 5 ‐11 4 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         12 8  29 t h  St  (P A 2 0 0 7 ‐06 7 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         71 0  Go l d e n r o d  Av e  (P A 2 0 1 6 ‐03 6 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         61 2  Ac a c i a  Av e  (P A 2 0 1 5 ‐17 7 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         26 , 1 2 5                                       31 2 5  Ba y s i d e  Dr  (P A 2 0 1 1 ‐00 7 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         71 5  He l i o t r o p e  (P A 2 0 1 4 ‐14 4 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         71 6  La r k s p u r  (P A 2 0 1 4 ‐06 8 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         42 2  He l i o t r o p e  (P A 2 0 1 5 ‐07 1 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         71 5  Ma r i g o l d  (P A 2 0 1 5 ‐04 6 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         40 4  He l i o t r o p e  (P A 2 0 1 5 ‐08 1 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         12 9  34 t h  St  (P A 2 0 1 6 ‐10 4 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         26 , 1 2 5                                       70 1  Po p p y  Av e  (P A 2 0 1 6 ‐15 4 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         26 , 1 2 5                                       21 1  Da h l i a  Av e ( P A 2 0 1 6 ‐14 6 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         26 , 1 2 5                                       71 2  He l i o t r o p e ( P A 2 0 1 6 ‐05 4 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         26 , 1 2 5                                       51 4  Fe r n l e a f ( P A 2 0 1 6 ‐05 1 ) 26 , 1 2 5                                          26 , 1 2 5                                               26 , 1 2 5                                                26 , 1 2 5                         26 , 1 2 5                                       Fr i e n d  of  th e  Oa s i s 35 , 0 0 0                                           35 , 0 0 0                                               35 , 0 0 0                                                35 , 0 0 0                                           1,9 6 2 , 6 4 7                                ‐                                                 1, 9 9 7 , 6 4 7                                   ‐                                               ‐                                 1,9 9 7 , 6 4 7                                    Ho a g  DA  # 5 8.2 S e m e n i u k  Sl o u g h  Stu d y $ 2 0 0 K  Fe e  Eli m i n a t e d  wit h  wit h  DA  am e n d m e n t  in  20 0 8 ‐                                                         ‐                                                        ‐                                                 ‐                                                           ‐                                               ‐                                 ‐                                                            ‐                                       Ho a g  DA  # 5 8.2 R e i m b  Ci t y  re l a t e d  to  Su p e r i o r  Av e  Me d i a n s C o m p l e t i o n  of  Pr o j e c t  Ex p e n d i t u r e s ‐                                                         ‐                                                        ‐                                                 ‐                                                           1,5 0 0 , 0 0 0                       ‐                                 1,5 0 0 , 0 0 0                                    1,5 0 0 , 0 0 0               Ho a g  DA  # 5 8.2 P u b l i c  Be n e f i t  (P a r k  or  Pu b  Sa f e t y ) P a i d  Ju n e  20 0 9  Xf r e d  to  Fa c i l i t i e s  Re s e r v e 1 , 5 0 0 , 0 0 0                                 ‐                                                        ‐                                                 1, 5 0 0 , 0 0 0                                   ‐                                               ‐                                 1,5 0 0 , 0 0 0                                    1,5 0 0 , 0 0 0               Ho a g  DA  # 5 8.4 S u n s e t  Vie w  Pa r k ,  Sh r u b  & Gr o u n d c o v e r P e n d i n g  Im p r o v e m e n t s ‐                                                         15 0 , 0 0 0                                      ‐                                                 15 0 , 0 0 0                                         ‐                                               ‐                                 15 0 , 0 0 0                                          15 0 , 0 0 0                     1,5 0 0 , 0 0 0                                 15 0 , 0 0 0                                      ‐                                                 1, 6 5 0 , 0 0 0                                   1,5 0 0 , 0 0 0                       ‐                                 3,1 5 0 , 0 0 0                                    3,1 5 0 , 0 0 0               Sa n t a  Ba r b a r a  Co n d o s ‐                                                 ‐                                                           ‐                                               ‐                                 ‐                                                            Sa n t a  Ba r b a r a  Co n d o s Se c t i o n  3. 3  of  MO A U n r e s t r i c t e d  Pu b l i c  Be n e f i t C o n c u r r e n t  wit h  Ce r t i f i c a t e  of  Oc c u p a n c y   1,6 4 5 , 5 6 6                                 ‐                                                        (3 2 , 9 1 1 )                                 1, 6 1 2 , 6 5 5                                   ‐                                               ‐                                 1,6 1 2 , 6 5 5                                    Sa n t a  Ba r b a r a  Co n d o s Se c t i o n  3. 3  of  MO A U n r e s t r i c t e d  Pu b l i c  Be n e f i t C o n c u r r e n t  wit h  Ce r t i f i c a t e  of  Oc c u p a n c y   3,3 5 4 , 4 3 4                                 ‐                                                        (6 7 , 0 8 9 )                                 3, 2 8 7 , 3 4 5                                   ‐                                               ‐                                 3,2 8 7 , 3 4 5                                    Sa n t a  Ba r b a r a  Co n d o s  (N P 2 0 0 5 ‐01 4 ) Se c t i o n  3. 2  of  MO A 7 9  Un i t s  x  $2 6 , 0 4 6 . 5 1 F e e  du e  at  bu i l d i n g  pe r m i t  is s u e 2 , 0 6 1 , 8 3 4                                ‐                                                 2, 0 6 1 , 8 3 4                                   ‐                                               ‐                                 2,0 6 1 , 8 3 4                                    2,0 6 1 , 8 3 4               5,0 0 0 , 0 0 0                                 2,0 6 1 , 8 3 4                                (1 0 0 , 0 0 0 )                             6, 9 6 1 , 8 3 4                                   ‐                                               6,9 6 1 , 8 3 4                                    2,0 6 1 , 8 3 4               Ba n n i n g  Ra n c h Se c t i o n  3.1 1 3 7 5  x  30 , 9 0 9  x  80 %  (H a i r c u t  As s u m p t i o n ) E a c h  Bu i l d i n g  Pe r m i t 27 , 6 6 3 , 5 5 5                             ‐                                                        ‐                                                 27 , 6 6 3 , 5 5 5                               ‐                                               ‐                                 27 , 6 6 3 , 5 5 5                                Up t o w n  Ne w p o r t $3 2 , 5 0 0 / U n i t  ‐   1,2 4 4  Un i t s ‐                                                        ‐                                                 ‐                                                           ‐                                               ‐                                 ‐                                                            Ph a s e  I   ‐   68 0  Un i t s  a)  45 5  b) 22 5 P R I O R  TO  EA C H  BU I L D I N G  PE R M I T 2 2 , 1 0 0 , 0 0 0                             (4 4 2 , 0 0 0 )                             21 , 6 5 8 , 0 0 0                               96 6 , 6 6 5                             ‐                                 22 , 6 2 4 , 6 6 5                                16 , 0 8 9 , 6 1 2           16 , 0 8 9 , 6 1 2                       6,965,200             Ph a s e  II  ‐  56 4  Un i t s P R I O R  TO  EA C H  BU I L D I N G  PE R M I T 1 8 , 3 3 0 , 0 0 0                             (3 6 6 , 6 0 0 )                             17 , 9 6 3 , 4 0 0                               63 1 , 4 5 6                             ‐                                 18 , 5 9 4 , 8 5 6                                18,594,856        PA 2 0 1 1 ‐13 4 I n  Lie u  Pa r k  Fe e s  ‐   Ph a s e  IP R I O R  TO  EA C H  BU I L D I N G  PE R M I T ‐Le s s  Pa r k  Cr e d i t s ‐                                                         10 , 1 4 3 , 3 6 1                            10 , 1 4 3 , 3 6 1                               10 , 1 4 3 , 3 6 1                                2,8 9 5 , 6 8 7               2,8 9 5 , 6 8 7                           2,000,000             In  Lie u  Pa r k  Fe e s  ‐   Ph a s e  II P R I O R  TO  EA C H  BU I L D I N G  PE R M I T ‐Le s s  Pa r k  Cr e d i t s ‐                                                         10 , 5 5 0 , 3 8 9                            10 , 5 5 0 , 3 8 9                               10 , 5 5 0 , 3 8 9                                10,550,389        40 , 4 3 0 , 0 0 0                             20 , 6 9 3 , 7 5 0                            (8 0 8 , 6 0 0 )                             60 , 3 1 5 , 1 5 0                               1,5 9 8 , 1 2 1                       ‐                                 61 , 9 1 3 , 2 7 1                               NB  Co u n t r y  Clu b 3.1 5 4 , 8 1 9  x  10 . 0 0  Go l f  Clu b  Clu b h o u s e I s s u a n c e  of  Fir s t  Bu i l d i n g  Pe r m i t s 5 6 2 , 1 9 6                                       ‐                                                        (1 1 , 2 4 4 )                                 55 0 , 9 5 2                                         ‐                                               ‐                                 55 0 , 9 5 2                                          9,2 5 6                                           Du n e s   Se t t l e m e n t Se c t i o n  C( e ) R e s t a u r a n t  on  Pa r c e l  B2 I s s u a n c e  of  Bu i l d i n g  Pe r m i t 5 0 , 0 0 0                                           ‐                                                        (1 , 0 0 0 )                                     49 , 0 0 0                                               ‐                                               ‐                                 49 , 0 0 0                                                49,000                   Du n e s   Se t t l e m e n t Se c t i o n  C(f ) F a m i l y  In n I s s u a n c e  of  Bu i l d i n g  Pe r m i t 1 0 0 , 0 0 0                                       ‐                                                        (2 , 0 0 0 )                                     98 , 0 0 0                                               ‐                                               ‐                                 98 , 0 0 0                                                98,000                   Du n e s   Se t t l e m e n t Se c t i o n  C( g ) F a m i l y  In n P r i o r  to  Oc c u p a n c y 4 1 0 , 4 0 2                                       ‐                                                        (8 , 2 0 8 )                                     40 2 , 1 9 4                                         ‐                                               ‐                                 40 2 , 1 9 4                                          402,194                 56 0 , 4 0 2                                       ‐                                                        (1 1 , 2 0 8 )                                 54 9 , 1 9 4                                         ‐                                               ‐                                 54 9 , 1 9 4                                         Go l f  Re a l i t y  Fu n d  (G R F ) 3.1 T e n n i s  Clu b  Re c o n s t r u c t i o n  3, 7 2 5  x  $1 0 . 0 0 I s s u a n c e  of  Bu i l d i n g  Pe r m i t 3 7 , 2 5 0                                           (7 4 5 )                                           36 , 5 0 5                                               ‐                                               ‐                                 36 , 5 0 5                                               36,505                     Go l f  Re a l i t y  Fu n d  (G R F ) 3.1 S i n g l e  Fa m i l y  Ho m e s  $5  x  $9 3 , 0 0 0 S i n g l e  Fa m i l y  Ho m e s 4 6 5 , 0 0 0                                       (9 , 3 0 0 )                                     45 5 , 7 0 0                                         ‐                                               ‐                                 45 5 , 7 0 0                                         455,700                   50 2 , 2 5 0                                       ‐                                                        (1 0 , 0 4 5 )                                 49 2 , 2 0 5                                         ‐                                               ‐                                 49 2 , 2 0 5                                          La n d  Re  Us e  De c i s i o n s Mo n r o v i a  Pr o p e r t y  Sa l e A c t u a l 5, 6 3 9 , 0 9 6                                   5,6 3 9 , 0 9 6                                    5,6 3 9 , 0 9 6               Lid o  Ho u s e  Ho t e l  Le a s e L e a s e G r o u n d  Le a s e >  of  Ba s e  Re n t  or  Pe r c e n t  Re n t s ‐                                                           ‐                                               ‐                                 ‐                                                           75,000                          150,000                  250,000                328,303             338,152             348,868          358,746          369,488             380,594              Po l i c e  Fa c i l i t y C o n c o r d   Es t i m a t e d  An n u a l  Fin a n c i a l  Be n e f i t N o t  Us e d 1 , 7 0 6 , 0 0 0                                 1, 7 0 6 , 0 0 0                                   ‐                                               ‐                                 1,7 0 6 , 0 0 0                                   We s t  Ne w p o r t  Gy m  ‐   Le a s e L e a s e G r o u n d  Le a s e 28 9 , 0 5 5                                       28 9 , 0 5 5                                         ‐                                               ‐                                 28 9 , 0 5 5                                         23 0 , 1 6 7                                 234,770                      239,466                  244,255                323,882             330,360             336,967          343,706          350,581             357,592              1,9 9 5 , 0 5 5                                 ‐                                                        ‐                                                 7, 6 3 4 , 1 5 1                                   ‐                                               ‐                                 7,6 3 4 , 1 5 1                                   TO T A L 1 1 5 , 9 6 0 , 4 5 8                       38 , 5 1 6 , 6 0 3                            (1 , 3 3 0 , 4 3 7 )                     15 8 , 7 8 5 , 7 2 0                           5,5 9 8 , 1 2 1                       ‐                                 16 4 , 3 8 3 , 8 4 1                           19 , 6 6 8 , 8 4 7                        1,093,520               1,081,671               10,008,649          652,186             668,512             685,835          702,452          720,069             29,883,431        Pa i d  St a t u s 4  of  4 1 of 1 4 Last Updated 3/15/2018 Start Start Est. Project Date Date Priority Projects Cost (Design)(Construction) 8 FS 5 - CDM (& Library)8,818,470 2016 2018 50 FS 2 - Land Purchase 4,000,000 2017 2018 5 FS 2 - Lido 9,665,750 2018 2019 13 Newport Jr. Guard Building - 2019 2020 25 Sunset View Park w/Ped Bridges & Dog Park 8,629,431 2018 2020 51 Grant Howald Park Sport Field Rehabilitation 6,192,121 2019 2021 3 FS 1 - Peninsula (& Library)5,298,302 2020 2022 37 Girls & Boys Club (East Bluff Park)- 2020 2022 6 FS 3 - Santa Barbara 9,509,486 2022 2025 6 1 2 ******** Total 52,113,560 3 4 Key Metric Target Max Debt Svc as % of Revenues NA < 8.0% Minimum FFP Reserve Balance (000's)$8,216 NA Key Statistics Min Max Avg GF Contribution to FFP (000's)$8,000 $9,274 $8,601 Debt Service (000's)$7,533 $8,216 $7,764 GF Contributions to FFP as % Rev 3.00%4.2%3.4% Debt Svc as % of Revenues 2.44%4.0%3.1% 5 6 FFP Balance (000's)$15,320 $52,222 $30,622 Key Statistics Min Max Avg GF Contribution to FFP (000's)$8,500 $13,497 $10,010 Debt Service (000's)$0 $8,216 $6,358 GF Contributions to FFP as % Rev 3.00%4.2%3.2% Debt Svc as % of Revenues 0.00%4.0%2.3% FFP Reserve Balance (000's)$30,644 $74,313 $35,116 7 8 Remaining Debt Capacity (Dbt. Svc < or = 8% of GF Rev):132.6$ Million CITY OF NEWPORT BEACH FACILITIES FINANCIAL PLANNING DASHBOARD 30 Year Council Debt Mgmt Policy (F-6) 15 Year 0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%10.00% 20 1 5 20 1 7 20 1 9 20 2 1 20 2 3 20 2 5 20 2 7 20 2 9 20 3 1 20 3 3 20 3 5 20 3 7 20 3 9 20 4 1 20 4 3 20 4 5 GF Contribution to FFP as a Percent of GF Revenue GF Contribution % Budget Debt Service - as % of Revenues $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 20 1 5 20 1 7 20 1 9 20 2 1 20 2 3 20 2 5 20 2 7 20 2 9 20 3 1 20 3 3 20 3 5 20 3 7 20 3 9 20 4 1 20 4 3 20 4 5 GF Contribution to FFP Compared to Debt Service GF Contribution to FFP Debt Service - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 20 3 4 20 3 5 20 3 6 20 3 7 20 3 8 20 3 9 20 4 0 20 4 1 20 4 2 20 4 3 20 4 4 20 4 5 FFP Reserve Balance - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 20 1 7 20 1 9 20 2 1 20 2 3 20 2 5 20 2 7 20 2 9 20 3 1 20 3 3 20 3 5 20 3 7 20 3 9 20 4 1 20 4 3 20 4 5 Project Funding Cash Funded Construction Debt Funded Construction - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 20 1 7 20 1 9 20 2 1 20 2 3 20 2 5 20 2 7 20 2 9 20 3 1 20 3 3 20 3 5 20 3 7 20 3 9 20 4 1 20 4 3 20 4 5 Project Expenditures - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 20 1 5 20 1 7 20 1 9 20 2 1 20 2 3 20 2 5 20 2 7 20 2 9 20 3 1 20 3 3 20 3 5 20 3 7 20 3 9 20 4 1 20 4 3 20 4 5 Debt Service Capacity Max Debt Service - 8% of Revenues Debt Service 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 20 1 5 20 1 7 20 1 9 20 2 1 20 2 3 20 2 5 20 2 7 20 2 9 20 3 1 20 3 3 20 3 5 20 3 7 20 3 9 20 4 1 20 4 3 20 4 5 Debt Service as % of GF Revenues Debt Service - as % of Revenues - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual GF Contributions Periodic GF or One-time Transfers Private Contributions Interest Earnings Cash Contributions Project Total Interest Debt Service Description Year Proceeds COI Issue Rate Term Maturity 2010 Civic Center COPs 2011 123,000,000 1,289,442 124,289,442 4.4%30 2041 Traunch 2 0 - - - 5.0%30 30 Traunch 3 0 - - - 5.0%30 30 GF contributions equal to $8.5m/year (level dollar) GF contributions equal to 3% of annual General Fund revenue GF contributions equal to 5% of annual General Fund revenue GF contributions equal to 3% GF Rev but not < than $8.5M Item No. 5C1Facilities Financial Plan Additional Materials ReceivedMarch 15, 2018 1 of 2 3/15/2018 Active Projects YR Repl Est $Current Age:Useful Years to Cost Est.Project FY Design Start FY Const Start FV Cost Est @ Private Net Proposed ProjNo Function Project Built Sq Ft /Sq Ft 2018 Life Start Date Estimate Year Year 2.5% Growth Contribtions Cost 1 Gen Gov Civic Center 2013 100,000 675 5 60 55 Jun-13 67,500,000 2070 2073 - - 4 Gen Gov Council Chambers 2013 29,000 675 5 60 55 Jun-13 19,575,000 2070 2073 - - 41 Gen Gov Civic Center Parking Structure 2013 450 16,000 5 60 55 Jun-13 7,200,000 2070 2073 - - 2 Police Police Station at Corporate Yard 1973 60,000 800 45 50 17 N/A 48,000,000 2032 2035 73,037,677 73,037,677 40 Municipal Operations Big Canyon Aux. Yard 2015 9,000 575 3 50 51 May-12 - 2062 2065 - 50 Fire FS 2 - Land Purchase **4,000,000 2017 2018 4,000,000 4,000,000 3 Fire FS 1 - Peninsula (& Library)1962 6,000 800 56 50 4 Mar-18 4,800,000 2020 2022 5,298,302 5,298,302 5 Fire FS 2 - Lido 1952 11,500 820 66 50 1 Mar-14 9,430,000 2018 2019 9,665,750 9,665,750 6 Fire FS 3 - Santa Barbara 1971 10,000 800 47 50 7 Mar-14 8,000,000 2022 2025 9,509,486 9,509,486 7 Fire FS 4 - Balboa Island 1994 4,400 800 24 50 26 Mar-14 3,520,000 2041 2044 6,689,030 6,689,030 8 Fire FS 5 - CDM (& Library)1950 10,314 855 68 50 0 Mar-14 8,818,470 2016 2018 8,818,470 8,818,470 9 Fire FS 6 - Mariners (apparatus bay only)2018 1,436 866 0 50 0 Mar-14 1,243,576 2016 2017 1,243,576 1,243,576 47 Fire FS 6 - Mariners (Living Area Rebuild)1957 3,000 800 61 7 2,400,000 2024 2025 2,852,846 2,852,846 10 Fire FS 7 - SAH 2007 6,500 800 11 50 39 Mar-14 5,200,000 2054 2057 13,621,787 13,621,787 11 Fire FS 8 - Npt. Coast 1995 11,027 800 23 50 27 Mar-14 8,821,600 2042 2045 17,182,713 17,182,713 12 Fire Lifeguard HQ Replacement 5,500 800 **25 22 Mar-14 4,400,000 2038 2040 7,574,914 7,574,914 13 Fire Newport Jr. Guard Building 0 4,900 775 **2 3,797,500 2019 2020 3,989,748 3,989,748 - 15 Library Library-Balboa (Construct w/ FS-1)1962 3,000 700 56 50 44 Jan-12 - 2059 2062 - - 16 Library Library-CDM (Construct w/ FS-5)1958 3,800 700 60 50 0 Jan-12 - 2016 2018 - - 17 Library Library-Mariners 2006 15,305 575 12 50 38 Jan-12 - 2053 2056 - - 18 Library Library-Central 1997 65,000 575 21 50 34 Jan-12 37,375,000 2049 2052 86,535,165 86,535,165 TBD Library Library Lecture Hall TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD 20 Rec Facility Marina Park 2015 22,000 575 3 50 47 Jan-12 12,650,000 2062 2065 40,374,969 40,374,969 21 Rec Facility Newport Coast Ctr 2007 16,865 575 11 50 39 Jan-12 9,697,375 2054 2057 25,402,996 25,402,996 22 Rec Facility Newport Theatre Arts Center 1973 12,000 575 45 50 12 Jan-12 6,900,000 2027 2030 9,279,733 4,639,866 4,639,866 23 Rec Facility OASIS Sr. Ctr 2010 43,232 575 8 60 42 Jan-12 24,858,400 2057 2060 70,125,427 70,125,427 25 Rec Facility Sunset View Park w/Ped Bridges & Dog Park 0 NA **∞2 Mar-14 10,450,000 2018 2020 10,979,031 2,349,600 8,629,431 29 Rec Facility Bonita Creek - Artificial Turf 2015 NA 8 3 10 7 Jan-12 2,000,000 2025 2025 2,377,372 2,377,372 33 Rec Facility Community Youth Center (CYC) - Grant Howald 1988 5,146 575 30 50 14 Jan-12 2,958,950 2029 2032 4,180,919 4,180,919 34 Rec Facility Caroll Beek Center 1980 1,555 575 38 50 15 Jan-12 894,125 2030 2033 1,294,960 1,294,960 35 Rec Facility Bonita Creek Community Ctr.1988 2,876 575 30 50 20 Jan-12 1,653,700 2035 2038 2,709,780 2,709,780 36 Rec Facility Cliff Drive Community Room 1960 750 575 58 50 18 Jan-12 431,250 2033 2036 672,603 672,603 37 Rec Facility Girls & Boys Club (East Bluff Park)1965 11,800 575 53 50 4 Jan-12 6,785,000 2020 2022 7,489,370 7,489,370 - 51 Rec Facility Grant Howald Park Sport Field Rehabilitation **50 3 Mar-18 5,750,000 2019 2021 6,192,121 6,192,121 38 Rec Facility Lawn Bowling Facility (San Joaquin Hills Park)1974 2,750 575 44 50 21 Mar-14 1,581,250 2036 2039 2,655,839 2,655,839 330,691,196 433,754,583 18,468,585 415,285,997 Recently Removed from Active List Municipal Operations Utilities/Corporate Yard Merge- Phase I **50 2 May-12 4,000,000 2018 2020 4,202,500 4,202,500 Rec Facility Sunset Ridge 2014 NA 4 ∞-4 Jan-12 - 2014 2014 8,020,754 8,020,754 Rec Facility Lower Castaways - Park **∞4 4,000,000 2019 2022 4,415,252 4,415,252 - Rec Facility Eastbluff Park Extension 2016 NA 2 ∞-2 Jan-12 - 2013 2016 - - Rec Facility West Newport Comm Ctr (incl pool)2017 25,000 575 1 50 2 Jan-12 - 2018 2020 - - Rec Facility Newport Pier Restaurant - - FFP Project Planning 1 of 1 1 2 3 4 5 6 7 8 9 10 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 AFFORDABILITY ASSUMPTIONs General Fund Revenues 204,374,344 210,505,574 216,820,742 223,325,364 230,025,125 236,925,878 244,033,655 251,354,664 258,895,304 266,662,164 GF Revenue Growth Assumption 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% FFP Contributions @ 3% of GF Revenues 6,131,230 6,315,167 6,504,622 6,699,761 6,900,754 7,107,776 7,321,010 7,540,640 7,766,859 7,999,865 GF Annual Contribution % of Revenue (assuming $8.5 M/yr)4.16%4.04%3.92%3.81%3.70%3.59%3.48%3.38%3.28%3.19% Debt Service as % of GF Revenues 3.99%3.90%3.79%3.64%3.34%3.24%3.14%3.04%2.94%2.85% FFP SOURCES 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 Beginning FFP Balance 17,709,221 30,643,851 28,353,458 15,320,478 21,258,943 17,407,497 16,540,049 16,244,122 18,354,811 19,121,396 Sources Annual GF Contributions 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 Periodic GF or One-time Transfers In 2,626,433 99,644 Private Contributions 19,668,655 1,279,952 3,199,625 10,008,649 652,186 668,512 685,835 702,452 720,069 29,883,431 Interest Earnings 40,458 64,418 90,888 383,012 637,768 565,744 578,902 568,544 642,418 669,249 Total Sources:30,835,546 9,944,014 11,790,513 18,891,661 9,789,954 9,734,256 9,764,737 9,770,997 9,862,487 39,052,680 Uses Debt Service (8,162,406) (8,215,550) (8,210,661) (8,138,841) (7,688,278) (7,676,638) (7,665,428) (7,649,308) (7,610,933) (7,603,024) Debt Funding Other Fiscal Charges (2,632) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) Project Uses (9,735,878) (4,007,857) (16,601,832) (4,803,356) (5,942,121) (2,914,066) (2,384,236) - (1,473,969) (8,106,837) Total Uses:(17,900,916) (12,234,407) (24,823,493) (12,953,197) (13,641,399) (10,601,704) (10,060,664) (7,660,308) (9,095,902) (15,720,861) Projected FFP Balance 30,643,851 28,353,458 15,320,478 21,258,943 17,407,497 16,540,049 16,244,122 18,354,811 19,121,396 42,453,215 Sources and Uses Proforma ACTIVESCENARIO FORMULA, DO NOT EDIT FORMULAIC ENTRY OF ANNUAL GF CONRIBUTIONS, EDIT ONLY IF CONTRIBUTION STANDARD OF $8.5M CHANGES 1 of 1 DEVELOPMENT AGREEMENTS AND PRIVATE CONTRIBUTIONS General TOTAL Non FFP 1 2 3 4 5 6 7 8 9 10 Public Park Public Arts FFP Traffic Amount 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Agreement REF Description Trigger Benefit Benefit & Culture BENEFIT Circulation Other Total Paid Hoag OASIS Pledge May 12, 2009 Pledge Letter Payment Schedule 500,000 - - 500,000 - - 500,000 500,000 Hoag OASIS Pledge May 12, 2009 Pledge Letter Payment Schedule 500,000 - - 500,000 - - 500,000 500,000 Hoag OASIS Pledge May 12, 2009 Pledge Letter Payment Schedule 1,500,000 - - 1,500,000 - - 1,500,000 1,500,000 2,500,000 - - 2,500,000 - - 2,500,000 2,500,000 Friends of Oasis Pledge Oasis Construction Restricted for Oasis Only 2,000,000 - - 2,000,000 - - 2,000,000 2,000,000 North Newport Center 4.1 In Lieu Park Fees Paid within 5 Days of Award of OASIS Contract - 5,600,000 5,600,000 5,600,000 5,600,000 North Newport Center 4.1 In Lieu Park Fees 430 $$26,046.51 Milestone Pmts - 5,600,000 5,600,000 5,600,000 5,600,000 North Newport Center T2 4.1 94 Units x $26,046.51 Milestone Pmts 2,448,372 2,448,372 2,448,372 2,448,372 - - North Newport Center 4.2 1 Issuance of First Building Permit 13,545,000 - 13,545,000 13,545,000 13,545,000 North Newport Center 4.2 Public Benefit Fee - 430 Units @ $31,500 Issuance of remaining 430 Residential Building Permits 13,545,000 - (270,900) 13,274,100 13,274,100 13,545,000 North Newport Center T2 Amended Agrmt Public Benefit Fee - 94 Units @ $63,000 Issuance of 431 st permit - 524 th permit 5,922,000 (118,440) 5,803,560 5,803,560 5,922,000 North Newport Center 4.4 Street Widening and Traffic Signals Within 30 Days of Reimbursement Request - - 2,500,000 2,500,000 - North Newport Center Amended Agrmt Bayside Drive Walkway Connection Within 90 Days of written notice after award of contract 200,000 200,000 200,000 200,000 33,212,000 13,648,372 (389,340) 46,471,032 2,500,000 - 48,971,032 48,971,032 The Dart Development (24 units)(PA2012-146) - 600,875 600,875 600,875 52,250 783,750 Newport Bay Marina (27 units) (PA2001-210)- 186,147 186,147 186,147 186,147 Via Lido Mixed Use(2 units) (PA2010-081)- 104,500 104,500 104,500 104,500 2218 Channel Rd.Abell John & Helou Carol - 26,125 26,125 26,125 26,125 Plaza CDM (6 Units) (PA2010-061) - 156,750 156,750 156,750 156,750 214 Narcissus (1 Units) (PA2011-192)- - - 604 Acacia Ave (PA2012-005) - 26,125 26,125 26,125 26,125 610 Larkspur LLC (NP2013-003)- 26,125 26,125 26,125 26,125 819 W. Balboa NP2012-010 26,125 26,125 26,125 26,125 501-507 L St(PA2016-010)78,375 78,375 78,375 78,375 78,375 416 Orchid Ave.- 26,125 26,125 26,125 26,125 Cohen Galina - 309 Goldenrod - 26,125 26,125 26,125 26,125 112 30th St. MW (PA2015-149)26,125 26,125 26,125 26,125 1560 Placentia (PA2014-110)209,000 209,000 209,000 209,000 115 30th St(PA2014-146)26,125 26,125 26,125 26,125 26,125 415 38th St(PA2006-005)26,125 26,125 26,125 26,125 26,125 3238 Clay (PA2015-114)26,125 26,125 26,125 26,125 128 29th St (PA2007-067)26,125 26,125 26,125 26,125 710 Goldenrod Ave (PA2016-036)26,125 26,125 26,125 26,125 612 Acacia Ave (PA2015-177)26,125 26,125 26,125 26,125 26,125 3125 Bayside Dr (PA2011-007)26,125 26,125 26,125 26,125 715 Heliotrope (PA2014-144)26,125 26,125 26,125 26,125 716 Larkspur (PA2014-068)26,125 26,125 26,125 26,125 422 Heliotrope (PA2015-071)26,125 26,125 26,125 26,125 715 Marigold (PA2015-046)26,125 26,125 26,125 26,125 404 Heliotrope (PA2015-081)26,125 26,125 26,125 26,125 129 34th St (PA2016-104)26,125 26,125 26,125 26,125 26,125 701 Poppy Ave (PA2016-154)26,125 26,125 26,125 26,125 26,125 211 Dahlia Ave(PA2016-146)26,125 26,125 26,125 26,125 26,125 712 Heliotrope(PA2016-054)26,125 26,125 26,125 26,125 26,125 514 Fernleaf(PA2016-051)26,125 26,125 26,125 26,125 26,125 Friend of the Oasis 35,000 35,000 35,000 35,000 1,962,647 - 1,997,647 - - 1,997,647 Hoag DA # 5 8.2 Semeniuk Slough Study $200K Fee Eliminated with with DA amendment in 2008 - - - - - - - - Hoag DA # 5 8.2 Reimb City related to Superior Ave Medians Completion of Project Expenditures - - - - 1,500,000 - 1,500,000 1,500,000 Hoag DA # 5 8.2 Public Benefit (Park or Pub Safety)Paid June 2009 Xfred to Facilities Reserve 1,500,000 - - 1,500,000 - - 1,500,000 1,500,000 Hoag DA # 5 8.4 Sunset View Park, Shrub & Groundcover Pending Improvements - 150,000 - 150,000 - - 150,000 150,000 1,500,000 150,000 - 1,650,000 1,500,000 - 3,150,000 3,150,000 Santa Barbara Condos - - - - - Santa Barbara Condos Section 3.3 of MOA Unrestricted Public Benefit Concurrent with Certificate of Occupancy 1,645,566 - (32,911) 1,612,655 - - 1,612,655 Santa Barbara Condos Section 3.3 of MOA Unrestricted Public Benefit Concurrent with Certificate of Occupancy 3,354,434 - (67,089) 3,287,345 - - 3,287,345 Santa Barbara Condos (NP2005-014)Section 3.2 of MOA 79 Units x $26,046.51 Fee due at building permit issue 2,061,834 - 2,061,834 - - 2,061,834 2,061,834 5,000,000 2,061,834 (100,000) 6,961,834 - 6,961,834 2,061,834 Banning Ranch Section 3.1 1375 x 30,909 x 80% (Haircut Assumption)Each Building Permit 27,663,555 - - 27,663,555 - - 27,663,555 Uptown Newport $32,500/Unit - 1,244 Units - - - - - - Phase I - 680 Units a) 455 b) 225 PRIOR TO EACH BUILDING PERMIT 22,100,000 (442,000) 21,658,000 966,665 - 22,624,665 16,089,612 16,089,612 6,965,200 Phase II - 564 Units PRIOR TO EACH BUILDING PERMIT 18,330,000 (366,600) 17,963,400 631,456 - 18,594,856 18,594,856 PA2011-134 In Lieu Park Fees - Phase I PRIOR TO EACH BUILDING PERMIT-Less Park Credits - 10,143,361 10,143,361 10,143,361 2,895,687 2,895,687 2,000,000 In Lieu Park Fees - Phase II PRIOR TO EACH BUILDING PERMIT-Less Park Credits - 10,550,389 10,550,389 10,550,389 10,550,389 40,430,000 20,693,750 (808,600) 60,315,150 1,598,121 - 61,913,271 NB Country Club 3.1 54,819 x 10.00 Golf Club Clubhouse Issuance of First Building Permits 562,196 - (11,244) 550,952 - - 550,952 9,256 Dunes Settlement Section C(e)Restaurant on Parcel B2 Issuance of Building Permit 50,000 - (1,000) 49,000 - - 49,000 49,000 Dunes Settlement Section C(f)Family Inn Issuance of Building Permit 100,000 - (2,000) 98,000 - - 98,000 98,000 Dunes Settlement Section C(g)Family Inn Prior to Occupancy 410,402 - (8,208) 402,194 - - 402,194 402,194 560,402 - (11,208) 549,194 - - 549,194 Golf Reality Fund (GRF)3.1 Tennis Club Reconstruction 3,725 x $10.00 Issuance of Building Permit 37,250 (745) 36,505 - - 36,505 36,505 Golf Reality Fund (GRF)3.1 Single Family Homes $5 x $93,000 Single Family Homes 465,000 (9,300) 455,700 - - 455,700 455,700 502,250 - (10,045) 492,205 - - 492,205 Land Re Use Decisions Monrovia Property Sale Actual 5,639,096 5,639,096 5,639,096 Lido House Hotel Lease Lease Ground Lease > of Base Rent or Percent Rents - - - - 75,000 150,000 250,000 328,303 338,152 348,868 358,746 369,488 380,594 Police Facility Concord Estimated Annual Financial Benefit Not Used 1,706,000 1,706,000 - - 1,706,000 West Newport Gym - Lease Lease Ground Lease 289,055 289,055 - - 289,055 230,167 234,770 239,466 244,255 323,882 330,360 336,967 343,706 350,581 357,592 1,995,055 - - 7,634,151 - - 7,634,151 TOTAL 115,960,458 38,516,603 (1,330,437) 158,785,720 5,598,121 - 164,383,841 19,668,847 1,093,520 1,081,671 10,008,649 652,186 668,512 685,835 702,452 720,069 29,883,431 Paid Status CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT Agenda Item No.5D March 15, 2018 TO: HONORABLE CHAIRMAN AND MEMBERS OF THE COMMITTEE FROM: Finance Department Dan Matusiewicz, Finance Director (949) 644-3123, danm@newportbeachca.gov SUBJECT: HARBOR AND BEACHES MASTER PLAN RECOMMENDED ACTIONS: 1. Review with staff the timing, means of financing, and fiscal impacts associated with funding the high-priority projects designated in the Harbor and Beaches Master Plan (HBMP); and 2. Give budget recommendations to the City Manager pertaining the HBMP in advance of his Fiscal Year 2018-2019 budget proposal. DISCUSSION: Each year, as part of the budget process, staff prepares an update to the long-term HBMP. Staff has projected the timing, means of financing, and fiscal impacts associated with funding the high-priority projects in the HBMP as recommended by the Harbor Commission. In order to maintain solvency over the long term, Finance staff spread the $60 million Balboa Island Seawall replacement project that was slated to begin in 2026 to three separate seawall efforts each five years apart - $20 million in 2026, $20 million in 2031 and $20 million in 2037. Prepared by: Submitted by: /s/ Steve Montano /s/ Dan Matusiewicz Steve Montano Dan Matusiewicz Deputy Finance Director Finance Director Attachment: A. Harbor and Beaches Master Plan ATTACHMENT A HARBOR AND BEACHES MASTER PLAN HA R B O R  & BE A C H E S  MA S T E R  PL A N  DA S H B O A R D TRUE Updated: 3 / 8 / 2 0 1 8 1 2 3 4 5 6 $0 $1 0 , 0 0 0 , 0 0 0 $2 0 , 0 0 0 , 0 0 0 $3 0 , 0 0 0 , 0 0 0 $4 0 , 0 0 0 , 0 0 0 $5 0 , 0 0 0 , 0 0 0 $6 0 , 0 0 0 , 0 0 0 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 2 0 3 6 2 0 3 7 2 0 3 8 2 0 3 9 2 0 4 0 2 0 4 1 2 0 4 2 2 0 4 3 2 0 4 4 2 0 4 5 Ha r b o r  an d  Be a c h e s  Ma s t e r  Pl a n  Fu n d i n g  Ba l a n c e $0 $5 , 0 0 0 , 0 0 0 $1 0 , 0 0 0 , 0 0 0 $1 5 , 0 0 0 , 0 0 0 $2 0 , 0 0 0 , 0 0 0 $2 5 , 0 0 0 , 0 0 0 $3 0 , 0 0 0 , 0 0 0 2 0 1 7 2 0 1 9 2 0 2 1 2 0 2 3 2 0 2 5 2 0 2 7 2 0 2 9 2 0 3 1 2033 2035 2037 2039 2041 2043 2045 Pr o j e c t  Ex p e n d i t u r e s 0. 0 0 % 10 . 0 0 % 20 . 0 0 % 30 . 0 0 % 40 . 0 0 % 50 . 0 0 % 60 . 0 0 % 2 0 1 7 2 0 1 9 2 0 2 1 2 0 2 3 2 0 2 5 2 0 2 7 2 0 2 9 2 0 3 1 2033 2035 2037 2039 2041 2043 2045 De b t  Se r v i c e  as  % of  De d i c a t e d  Revenues De b t  Se r v i c e  ‐   as  % of  Revenues $0 $2 , 0 0 0 , 0 0 0 $4 , 0 0 0 , 0 0 0 $6 , 0 0 0 , 0 0 0 $8 , 0 0 0 , 0 0 0 $1 0 , 0 0 0 , 0 0 0 $1 2 , 0 0 0 , 0 0 0 $1 4 , 0 0 0 , 0 0 0 $1 6 , 0 0 0 , 0 0 0 $1 8 , 0 0 0 , 0 0 0 2 0 1 5 2 0 1 7 2 0 1 9 2 0 2 1 2 0 2 3 2 0 2 5 2 0 2 7 2 0 2 9 2 0 3 1 2 0 3 3 2 0 3 5 2 0 3 7 2 0 3 9 2 0 4 1 2 0 4 3 2 0 4 5 2 0 4 7 Al l  Es t i m a t e d  Re v e n u e  So u r c e s Gr a n t s Pe r i o d i c  GF  or  On e ‐ti m e  Tr a n s f e r s Ge n e r a l  Fu n d  Co n t r i b u t i o n s In t e r e s t  Ea r n i n g s In c r e m e n t a l  Re v e n u e  Pr o j e c t i o n Bu l k h e a d ,  $1 6 0 . 0 0 ,   70 % Dr a i n ,  $0 . 0 4 ,  0% Dr e d g i n g ,  $3 8 . 2 1 ,   17 % Ga t e  Va l v e s ,  $4 . 0 3 ,   2% Ot h e r ,  $1 0 . 7 9 ,  5% Pi e r s ,  $3 . 7 4 ,  2% Sl i p s ,  $9 . 4 5 ,  4% Wa t e r  Qu a l i t y ,  $0 . 5 9 ,   0% Ba y ,  $0 . 0 8 ,  0% Ex p e n d i t u r e s  by  Ty p e  (m i l l i o n s ) Wi t h e x t e r n a l c o n t r i b u t i o n s ( g r a n t s ) a s i n d i c a t e d o n p r o j e c t l i s t Increment  Revenue, $152.99  , 40% Ge n e r a l  Fu n d   Co n t r i b u t i o n s ,   $2 0 7 . 5 0  , 54 % Pe r i o d i c  Ge n e r a l  Fu n d  Co n t r i b u t i o n s  or   On e ‐Ti m e  Tr a n s f e r s ,   $6 . 5 0  , 2% Gr a n t s ,   $1 5 . 2 4  , 4% Re v e n u e s  by  Ty p e  (millions) I: \ U s e r s \ F I N \ S h a r e d \ A c c o u n t i n g \ F u n d s \ 2 4 0 _ T i d e l a n d s  Ca p i t a l _ 1 0 1 \ H a r b o r  Ca p i t a l  Pr o j e c t  Fi n a n c i n g  Pl a n \ H a r b o r  an d  Be a c h e s  Ca p i t a l  Pl a n n i n g  v2 0 1 8 _ 0 3 _ 1 5 1  of  4 La s t  Up d a t e d :   3/ 8 / 2 0 1 8 20 1 8 Re f  # P r o j G L P r o j e c t C a t e g o r y YR  Bu i l t L a s t  Re f u r b .  Un i t s   Me a s u r e m e n t   To t a l  Un i t s    To d a y ' s   To t a l  Co s t    Cu r r e n t  Ag e :   Us e f u l  Li f e Y e a r s  to  Start  Project  Estimate  FY  Design  Start  YearFY Const  Start  YearFV Cost  Est  @2.5% Growth External  Contributions  Net  Proposed  Cost 1T i d e  Ga t e  Va l v e s  (B a l b o a  Is l a n d ) :  Re p l a c e   Ga t e  Va l v e s 0 0 E A 3 4                                    $5 0 , 0 0 0 * * 2 5 4 $ 1 , 7 0 0 , 0 0 0 2019 2 0 2 2 $ 1 , 8 7 6 , 4 8 2 $ 1 , 8 7 6 , 4 8 2 2T i d e  Ga t e  Va l v e s  (P e n i n s u l a ) :  Re p l a c e G a t e  Va l v e s 0 0 E A 3 9                                    $5 0 , 0 0 0 * * 2 5 4 $ 1 , 9 5 0 , 0 0 0 2019 2 0 2 2 $ 2 , 1 5 2 , 4 3 5 $ 2 , 1 5 2 , 4 3 5 3 Se a w a l l  (B a l b o a  Is l a n d  N  & S) :  Ex t e n d  Ca p Bu l k h e a d 19 3 0 0 LF 7, 0 0 0                          $1 0 0 88 20 $700,000 2014 2017 $0 $0 4 15 H 1 1 Se a w a l l  (B a l b o a  Is l a n d ,  We s t  En d ) :  Ex t e n d  Ca p   Bu l k h e a d 19 3 0 0 LF 1, 3 0 0                          $1 0 0 88 20 $130,000 2014 2017 $0 $0 5A r c h e s  Dr a i n :  Dr y  We a t h e r  Di v e r s i o n D r a i n 2 0 1 7 0 L S 1                                         $8 6 0 , 0 0 0 1 8 0 0 $ 8 6 0 , 0 0 0 2 0 1 7 2 0 1 9 $ 8 6 0 , 0 0 0 8 2 0 , 0 0 0                      $40,000 6 Bu l k h e a d  (E d g e  Wa t e r  Ln )  Ex t e n d  Ca p Bu l k h e a d 20 1 7 LF 14 5                                $3 0 3 1 20 $43,935 2017 2017 $0 $0 7 1 6 H 1 2 D r e d g i n g  (G r a n d  Ca n a l ) :  No r t h  of  Ce n t e r D r e d g i n g 0 0 C Y 5 , 0 0 0                          $1 7 5 * * 5 $ 3 6 1 , 0 0 0 2 0 1 7 2 0 1 8 $ 0 $ 3 6 1 , 0 0 0 8 N a v i g a t i o n  Ma r k e r s :  Co n v e r t  Fe d e r a l  St a t i o n a r y  Ma r k e r s   to  Fl o a t s Ot h e r 0 0 L S 1                                         $6 0 , 0 0 0 * * 0 $ 6 0 , 0 0 0 2 0 1 7 2 0 1 8 $ 0 $ 6 0 , 0 0 0 9B a l b o a  Is l a n d / R u b y  Be a c h  Sw i m  Pl a t f o r m O t h e r 0 E A 1                                         $7 3 5 , 0 0 0 * * 2 0 1 $ 7 3 5 , 0 0 0 2 0 1 8 2 0 1 9 $ 7 5 3 , 3 7 5 $ 7 5 3 , 3 7 5 10 B i l d g e  Pu m p o u t  Do c k W a t e r  Qu a l i t y 0 0 L S 1                                         $2 0 0 , 0 0 0 * * 1 5 2 $ 2 0 0 , 0 0 0 2 0 1 8 2 0 2 0 $ 2 1 0 , 1 2 5 $ 2 1 0 , 1 2 5 11 B u l k h e a d  (A m e r i c a n  Le g i o n ) :  Re p a i r B u l k h e a d 1 9 5 7 0 L F 3 2 8                                $9 0 0 6 1 4 0 1 $ 2 9 5 , 2 0 0 2 0 1 8 2 0 1 9 $ 3 0 2 , 5 8 0 $ 3 0 2 , 5 8 0 12 H a r b o r  Lo c a l  Co a s t a l  Pla n O t h e r 0 0 L S 1                                         $5 0 0 , 0 0 0 * * 5 0 3 $ 5 0 0 , 0 0 0 2 0 1 8 2 0 2 1 $ 5 3 8 , 4 4 5 $ 5 3 8 , 4 4 5 13 P u b l i c  Pi e r  (M  St ) :  Ga n g w a y  & Fl o a t P i e r s 0 0 E A 1                                         $1 0 0 , 0 0 0 * * 2 0 2 $ 1 0 0 , 0 0 0 2 0 1 8 2 0 2 0 $ 1 0 5 , 0 6 3 $ 1 0 5 , 0 6 3 14 P u b l i c  Pi e r  (1 5 t h  St ) :  Flo a t  on l y P i e r s 0 0 E A 1                                         $5 0 , 0 0 0 * * 2 0 2 $ 5 0 , 0 0 0 2 0 1 8 2 0 2 0 $ 5 2 , 5 3 1 $ 5 2 , 5 3 1 15 P u b l i c  Pi e r  (O p a l  Av e ) :  Ga n g w a y  & Fl o a t P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 2 $ 7 5 , 0 0 0 2 0 1 8 2 0 2 0 $ 7 8 , 7 9 7 $ 7 8 , 7 9 7 16 P u b l i c  Pi e r  (F e r n a n d o  St ) :  Ga n g w a y  & Fl o a t P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 2 $ 7 5 , 0 0 0 2 0 1 8 2 0 2 0 $ 7 8 , 7 9 7 $ 7 8 , 7 9 7 17 P u b l i c  Sw i m  Flo a t  (1 0 t h  St ) O t h e r 0 0 E A 1                                         $3 5 , 0 0 0 * * 2 0 1 $ 3 5 , 0 0 0 2 0 1 8 2 0 1 9 $ 3 5 , 8 7 5 $ 3 5 , 8 7 5 18 W a t e r  Qu a l i t y :  TM D L  Co m p l i a n c e : W a t e r  Qu a l i t y 0 0 L S 1                                         $3 0 0 , 0 0 0 * * O n g o i n g 2 $ 3 0 0 , 0 0 0 2 0 1 8 2 0 2 0 $ 3 1 5 , 1 8 8 $ 3 1 5 , 1 8 8 19 Dr e d g i n g  Eq u i p m e n t  (n e e d s  fu r t h e r  re v i e w ) Dr e d g i n g 0 0 EA 2                                         $1 , 0 0 0 , 0 0 0 ** 30 2 $2,000,000 2019 2020 $0 $0 20 D r e d g i n g :  Lo w e r  Ba y  (C h a n n e l s  ‐   On g o i n g  Ma i n t e n a n c e ) D r e d g i n g 0 0 C Y 6 5 0 , 0 0 0                $2 5 * * 3 0 4 $ 1 6 , 2 5 0 , 0 0 0 2 0 1 9 2 0 2 2 $ 1 7 , 9 3 6 , 9 5 9 1 4 , 3 4 9 , 5 6 8                $3,587,392 21 D r e d g i n g :  Ne w p o r t  Is l a n d  Ar e a  (C h a n n e l s ) D r e d g i n g 0 0 C Y 1 5 , 0 0 0                      $5 0 * * 5 0 4 $ 7 5 0 , 0 0 0 2 0 1 9 2 0 2 2 $ 8 2 7 , 8 6 0 $ 8 2 7 , 8 6 0 22 P u b l i c  Be a c h e s  (L i d o  Is l e  Br i d g e ) :  In s t a l l  Wa l k w a y  to  Be a c h B a y 0 0 E A 1                                         $7 5 , 0 0 0 * * 4 0 2 $ 7 5 , 0 0 0 2 0 1 9 2 0 2 0 $ 7 8 , 7 9 7 $ 7 8 , 7 9 7 23 P u b l i c  Pi e r  (W a s h i n g t o n  St ) :  Ga n g w a y  & Flo a t P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 3 $ 7 5 , 0 0 0 2 0 1 9 2 0 2 1 $ 8 0 , 7 6 7 $ 8 0 , 7 6 7 24 P u b l i c  Pi e r  (P a r k  Av e ) :  Ga n g w a y  & Flo a t P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 3 $ 7 5 , 0 0 0 2 0 1 9 2 0 2 1 $ 8 0 , 7 6 7 $ 8 0 , 7 6 7 25 P u b l i c  Pi e r  (1 9 t h  St ) :  Ga n g w a y  & Fl o a t P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 3 $ 7 5 , 0 0 0 2 0 1 9 2 0 2 1 $ 8 0 , 7 6 7 $ 8 0 , 7 6 7 26 P u b l i c  Pi e r  (C o r a l  Av e ) :  Ga n g w a y  & Fl o a t P i e r s 1 9 8 5 1 9 8 5 E A 1                                         $7 5 , 0 0 0 3 3 2 0 3 $ 7 5 , 0 0 0 2 0 1 9 2 0 2 1 $ 8 0 , 7 6 7 $ 8 0 , 7 6 7 27 P u b l i c  Pi e r  (2 9 t h  St ) :  Ga n g w a y  & Fl o a t P i e r s 0 0 E A 1                                         $1 0 0 , 0 0 0 * * 2 0 2 $ 1 0 0 , 0 0 0 2 0 1 9 2 0 2 0 $ 1 0 5 , 0 6 3 $ 1 0 5 , 0 6 3 28 W a t e r  Qu a l i t y :  Ci r c u l a t i o n  (N e w p o r t  Is l a n d  Ar e a ) : W a t e r  Qu a l i t y 0 0 E A ‐                                  ** 0 2 $ 0 2 0 1 9 2 0 2 0 $ 0 $ 0 29 Fe r r y  La n d i n g s  (A g a t e  Av e  & Pa l m  St ) :  Re p l a c e ? Ot h e r 19 3 0 0 EA 1                                         $0 88 75 4 $0 2020 2022 $0 $0 30 L o w e r  Ca s t a w a y s :    Bu l k h e a d  On l y B u l k h e a d 0 0 L F 2 6 5                                $3 , 8 0 0 * * 8 0 4 $ 1 , 0 0 7 , 0 0 0 2020 2 0 2 2 $ 1 , 1 1 1 , 5 4 0 $ 1 , 1 1 1 , 5 4 0 31 P u b l i c  Pi e r  (S a p p h i r e  Av e ) :  Ga n g w a y  & Fl o a t P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 4 $ 7 5 , 0 0 0 2 0 2 0 2 0 2 2 $ 8 2 , 7 8 6 $ 8 2 , 7 8 6 32 P u b l i c  Pi e r  (E m e r a l d  Av e ) :  Ga n g w a y  & Fl o a t P i e r s 1 9 8 6 1 9 8 6 E A 1                                         $7 5 , 0 0 0 3 2 2 0 4 $ 7 5 , 0 0 0 2 0 2 0 2 0 2 2 $ 8 2 , 7 8 6 $ 8 2 , 7 8 6 33 V e s s e l  Se w a g e  Pu m p o u t  Fa c i l i t i e s :  Re p l a c e W a t e r  Qu a l i t y 0 0 E A 5                                         $2 5 , 0 0 0 * * 1 0 5 $ 1 2 5 , 0 0 0 2 0 2 0 2 0 2 3 $ 1 4 1 , 4 2 6 7 5 , 0 0 0                        $66,426 34 C e n t r a l  Pe n i n s u l a  Sa n d  No u r i s h m e n t S a n d 2 0 1 7 C Y 1 , 0 0 0 , 0 0 0          1 2 0 7 $ 0 2 0 2 1 2 0 2 5 $ 0 $ 0 35 B a l b o a  Ya c h t  Ba s i n  Ma r i n a  (S l i p s ) :  Re p l a c e S l i p s 1 9 8 5 0 S l i p s 1 7 2                                $3 5 , 0 0 0 3 3 4 0 7 $ 6 , 0 2 0 , 0 0 0 2022 2 0 2 5 $ 7 , 1 5 5 , 8 8 8 $ 7 , 1 5 5 , 8 8 8 36 D r e d g i n g  (B a l b o a  Ya c h t  Ba s i n ) : D r e d g i n g 1 9 8 5 0 C Y 2 5 , 6 0 0                      $7 0 3 3 4 0 7 $ 1 , 7 9 2 , 0 0 0 2 0 2 2 2 0 2 5 $ 2 , 1 3 0 , 1 2 5 $ 2 , 1 3 0 , 1 2 5 37 B a l b o a  Is l a n d ,  N,  S,  E  & GC :  Bo a r d w a l k  & Pe r i m e t e r   Dr a i n a g e  Sy s t e m  on l y  (L i t t l e  Is l a n d  no t  in c l u d e  ~4 2 k  SF ) Ot h e r 0 0 S F 9 2 , 0 0 0                      $2 5 * * 8 0 8 $ 2 , 3 0 0 , 0 0 0 2 0 2 4 2 0 2 6 $ 2 , 8 0 2 , 3 2 7 $ 2 , 8 0 2 , 3 2 7 38  Ba l b o a  Is l a n d ,  N,  S,  E  & GC :  Re p l a c e  Se a w a l l  1 B u l k h e a d 1 9 3 0 L F 4 , 3 8 6                          $3 , 8 0 0 8 8 8 0 8 $ 1 6 , 6 6 7 , 6 6 6 2024 2 0 2 6 $ 2 0 , 3 0 7 , 9 3 3 $ 2 0 , 3 0 7 , 9 3 3 71  Ba l b o a  Is l a n d ,  N,  S,  E  & GC :  Re p l a c e  Se a w a l l  2 B u l k h e a d 1 9 3 0 L F 4 , 3 8 6                          $3 , 8 0 0 8 8 8 1 1 3 $ 1 6 , 6 6 7 , 6 6 6 2024 2 0 3 1 $ 2 2 , 9 7 6 , 5 6 2 $ 2 2 , 9 7 6 , 5 6 2 72  Ba l b o a  Is l a n d ,  N,  S,  E  & GC :  Re p l a c e  Se a w a l l  3 B u l k h e a d 1 9 3 0 L F 4 , 3 8 6                          $3 , 8 0 0 8 8 8 2 1 9 $ 1 6 , 6 6 7 , 6 6 6 2024 2 0 3 7 $ 2 6 , 6 4 5 , 7 6 8 $ 2 6 , 6 4 5 , 7 6 8 39 S u r f s i d e / S u n s e t  Be a c h  Sa n d  No u r i s h m e n t S a n d 2 0 1 7 L S 1                                         $3 0 0 , 0 0 0 1 7 7 $ 3 0 0 , 0 0 0 2 0 2 4 2 0 2 5 $ 3 5 6 , 6 0 6 $ 3 5 6 , 6 0 6 40 D r e d g i n g :  Up p e r  Ba y  Ca t c h  Ba s i n s D r e d g i n g 2 0 0 9 0 C Y 5 0 0 , 0 0 0                $3 0 9 2 1 1 2 $ 1 5 , 0 0 0 , 0 0 0 2 0 2 7 2 0 3 0 $ 2 0 , 1 7 3 , 3 3 2 $ 2 0 , 1 7 3 , 3 3 2 41 D r e d g i n g :  Up p e r  Ba y  Ch a n n e l s D r e d g i n g 2 0 0 9 C Y 2 5 0 , 0 0 0                $3 0 9 2 1 1 6 $ 7 , 5 0 0 , 0 0 0 2 0 2 7 2 0 3 0 $ 1 1 , 1 3 3 , 7 9 2 $ 1 1 , 1 3 3 , 7 9 2 42 R h i n e  Wh a r f  Bo a r d w a l k :  Ma j o r  Re p a i r O t h e r 0 0 L F 1                                         $1 5 0 , 0 0 0 * * 2 0 1 1 $ 1 5 0 , 0 0 0 2 0 2 7 2 0 2 9 $ 1 9 6 , 8 1 3 $ 1 9 6 , 8 1 3 43 P u b l i c  Ba y  Be a c h e s :  Sa n d  No u r i s h m e n t  (2 5 k  ya r d s ) O t h e r 2 0 1 6 0 C Y 2 5 , 0 0 0                      $5 0 2 2 5 1 3 $ 1 , 2 5 0 , 0 0 0 2 0 2 8 2 0 3 1 $ 1 , 7 2 3 , 1 3 9 $ 1 , 7 2 3 , 1 3 9 44 P u b l i c  Pi e r  (1 5 t h  St ) :  Pi e r  & Ga n g w a y P i e r s 0 0 E A 1                                         $1 1 5 , 0 0 0 * * 2 0 1 6 $ 1 1 5 , 0 0 0 2 0 3 1 2 0 3 4 $ 1 7 0 , 7 1 8 $ 1 7 0 , 7 1 8 45 P u b l i c  Pi e r  (C o r a l  Av e ) :  Pi e r  on l y P i e r s 1 9 8 5 1 9 8 5 E A 1                                         $7 5 , 0 0 0 3 3 2 0 1 6 $ 7 5 , 0 0 0 2 0 3 1 2 0 3 4 $ 1 1 1 , 3 3 8 $ 1 1 1 , 3 3 8 46 P u b l i c  Pi e r  (E m e r a l d  Av e ) :  Pi e r  on l y P i e r s 1 9 8 6 1 9 8 6 E A 1                                         $7 5 , 0 0 0 3 2 2 0 1 6 $ 7 5 , 0 0 0 2 0 3 1 2 0 3 4 $ 1 1 1 , 3 3 8 $ 1 1 1 , 3 3 8 47 P u b l i c  Pi e r  (F e r n a n d o  St ) :  Pi e r  on l y P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 1 6 $ 7 5 , 0 0 0 2 0 3 1 2 0 3 4 $ 1 1 1 , 3 3 8 $ 1 1 1 , 3 3 8 48 P u b l i c  Pi e r  (M  St ) :  Pi e r  on l y P i e r s 1 9 8 5 1 9 8 5 E A 1                                         $1 0 0 , 0 0 0 3 3 2 0 1 6 $ 1 0 0 , 0 0 0 2 0 3 1 2 0 3 4 $ 1 4 8 , 4 5 1 $ 1 4 8 , 4 5 1 49 P u b l i c  Pi e r  (O p a l  Av e ) :  Pi e r  on l y P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 1 6 $ 7 5 , 0 0 0 2 0 3 1 2 0 3 4 $ 1 1 1 , 3 3 8 $ 1 1 1 , 3 3 8 50 P u b l i c  Pi e r  (P a r k  Av e ) :  Pie r  on l y P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 1 6 $ 7 5 , 0 0 0 2 0 3 1 2 0 3 4 $ 1 1 1 , 3 3 8 $ 1 1 1 , 3 3 8 51 P u b l i c  Pi e r  (S a p p h i r e  Av e ) :  Pi e r  on l y P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 1 6 $ 7 5 , 0 0 0 2 0 3 1 2 0 3 4 $ 1 1 1 , 3 3 8 $ 1 1 1 , 3 3 8 52 P u b l i c  Pi e r  (W a s h i n g t o n  St ) :  Pie r  on l y P i e r s 0 0 E A 1                                         $7 5 , 0 0 0 * * 2 0 1 6 $ 7 5 , 0 0 0 2 0 3 1 2 0 3 4 $ 1 1 1 , 3 3 8 $ 1 1 1 , 3 3 8 53 E n t r a n c e  Je t t y :  Ma i n t e n a n c e O t h e r 1 9 3 6 0 L F 3 , 0 0 0                          $1 , 0 0 0 8 2 5 0 1 8 $ 3 , 0 0 0 , 0 0 0 2033 2 0 3 6 $ 4 , 6 7 8 , 9 7 6 $ 4 , 6 7 8 , 9 7 6 54 B u l k h e a d  (A m e r i c a n  Le g i o n ) :  Re p l a c e B u l k h e a d 1 9 5 7 0 L F 3 3 6                                $3 , 8 0 0 6 1 8 0 1 9 $ 1 , 2 7 6 , 8 0 0 2034 2 0 3 7 $ 2 , 0 4 1 , 1 5 7 $ 2 , 0 4 1 , 1 5 7 HA R B O R &  BE A C H E S  MA S T E R  PL A N  PR O J E C T S I: \ U s e r s \ F I N \ S h a r e d \ A c c o u n t i n g \ F u n d s \ 2 4 0 _ T i d e l a n d s  Ca p i t a l _ 1 0 1 \ H a r b o r  Ca p i t a l  Pr o j e c t  Fi n a n c i n g  Pl a n \ H a r b o r  an d  Be a c h e s  Ca p i t a l  Pl a n n i n g  v2 0 1 8 _ 0 3 _ 1 5 2  of  4 Re f  # P r o j G L P r o j e c t C a t e g o r y YR  Bu i l t L a s t  Re f u r b .  Un i t s   Me a s u r e m e n t   To t a l  Un i t s    To d a y ' s   To t a l  Co s t    Cu r r e n t  Ag e :   Us e f u l  Li f e Y e a r s  to  Start  Project  Estimate  FY  Design  Start  YearFY Const  Start  YearFV Cost  Est  @2.5% Growth External  Contributions  Net  Proposed  Cost 55 P u b l i c  Pi e r  (R h i n e  Ch a n n e l ) :  Fl o a t  on l y P i e r s 2 0 0 7 2 0 0 7 E A 1                                         $1 7 5 , 0 0 0 1 1 3 0 1 9 $ 1 7 5 , 0 0 0 2 0 3 4 2 0 3 7 $ 2 7 9 , 7 6 4 $ 2 7 9 , 7 6 4 56 B u l k h e a d  (R h i n e  Ch a n n e l ) :  Re p l a c e B u l k h e a d 1 9 6 0 0 L F 3 7 5                                $3 , 8 0 0 5 8 8 0 2 2 $ 1 , 4 2 5 , 0 0 0 2037 2 0 4 0 $ 2 , 4 5 3 , 2 3 9 $ 2 , 4 5 3 , 2 3 9 57 P u b l i c  Pi e r  (G r a n d  Ca n a l ,  Ba l b o a  Av e ) :  Pi e r  Pl a t f o r m P i e r s 2 0 1 7 2 0 1 2 E A 1                                         $1 0 , 0 0 0 1 2 0 2 0 $ 1 0 , 0 0 0 2 0 3 7 2 0 3 8 $ 1 6 , 3 8 6 $ 1 6 , 3 8 6 58 B u l k h e a d  (W e s t  Ne w p o r t ) :  Re p l a c e B u l k h e a d 0 0 L F 1 , 7 2 2                          $3 , 8 0 0 * * 8 0 2 3 $ 6 , 5 4 3 , 6 0 0 2038 2 0 4 1 $ 1 1 , 5 4 6 , 9 0 6 $ 1 1 , 5 4 6 , 9 0 6 59 B u l k h e a d  (C o r o n a  De l  Ma r ) :  Re p l a c e B u l k h e a d 0 0 L F 1 7 5                                $3 , 8 0 0 * * 8 0 2 7 $ 6 6 5 , 0 0 0 2 0 4 2 2 0 4 5 $ 1 , 2 9 5 , 2 8 7 $ 1 , 2 9 5 , 2 8 7 60 B u l k h e a d  (P r o m o n t o r y  Ba y ) :  Re p l a c e B u l k h e a d 1 9 6 5 0 L F 1 , 1 5 8                          $3 , 8 0 0 5 3 8 0 2 7 $ 4 , 4 0 0 , 4 0 0 2042 2 0 4 5 $ 8 , 5 7 1 , 0 9 9 $ 8 , 5 7 1 , 0 9 9 61 P u b l i c  Pi e r  (R h i n e  Ch a n n e l ) :  Ga n g w a y  on l y P i e r s 0 0 E A 1                                         $6 0 , 0 0 0 * * 4 0 2 9 $ 6 0 , 0 0 0 2 0 4 4 2 0 4 7 $ 1 2 2 , 7 8 4 $ 1 2 2 , 7 8 4 62 B u l k h e a d  (R h i n e  Wh a r f ) :  Re p l a c e B u l k h e a d 0 0 L F 3 4 3                                $3 , 8 0 0 * * 8 0 3 1 $ 1 , 3 0 3 , 4 0 0 2046 2 0 4 9 $ 2 , 8 0 2 , 3 1 9 $ 2 , 8 0 2 , 3 1 9 63 M a r i n a  Pa r k  Sl i p s :  Re p l a c e S l i p s 2 0 1 5 0 E A 2 3                                    $4 0 , 0 0 0 3 4 0 3 7 $ 9 2 0 , 0 0 0 2 0 5 2 2 0 5 5 $ 2 , 2 9 3 , 8 8 1 $ 2 , 2 9 3 , 8 8 1 64 B u l k h e a d  (S t r e e t  En d s  ‐   Pe n i n s u l a ) :  Re p l a c e B u l k h e a d 0 0 L F 2 , 2 1 7                          $3 , 8 0 0 * * 8 0 3 8 $ 8 , 4 2 4 , 6 0 0 2053 2 0 5 6 $ 2 1 , 5 3 0 , 6 0 2 $ 2 1 , 5 3 0 , 6 0 2 65 P u b l i c  Pi e r  (B a l b o a  Ma r i n a  We s t ) :  Fl o a t  on l y P i e r s 2 0 1 7 0 E A 1                                         $2 0 0 , 0 0 0 1 4 0 3 9 $ 2 0 0 , 0 0 0 2 0 5 4 2 0 5 7 $ 5 2 3 , 9 1 5 $ 5 2 3 , 9 1 5 66 P u b l i c  Pi e r  (B a l b o a  Ma r i n a  We s t ) :  Ga n g w a y P i e r s 2 0 1 7 0 E A 1                                         $5 0 , 0 0 0 1 4 1 4 0 $ 5 0 , 0 0 0 2 0 5 5 2 0 5 8 $ 1 3 4 , 2 5 3 $ 1 3 4 , 2 5 3 67 P u b l i c  Pi e r  (C e n t r a l  Av e ) :  Ga n g w a y  an d  Fl o a t P i e r s 2 0 1 7 0 E A 1                                         $2 5 0 , 0 0 0 1 4 0 3 9 $ 2 5 0 , 0 0 0 2 0 5 5 2 0 5 7 $ 6 5 4 , 8 9 4 $ 6 5 4 , 8 9 4 68 B u l k h e a d  (B a l b o a  Ya c h t  Ba s i n ) :  Re p l a c e B u l k h e a d 1 9 8 5 0 L F 1 , 3 7 0                          $3 , 8 0 0 3 3 8 0 4 7 $ 5 , 2 0 6 , 0 0 0 2063 2 0 6 5 $ 1 6 , 6 1 5 , 9 7 5 $ 1 6 , 6 1 5 , 9 7 5 69 B u l k h e a d  (M a r i n a  Pa r k ) :  Re p l a c e B u l k h e a d 2 0 1 5 0 L F 8 5 7                                $3 , 8 0 0 3 8 0 7 7 $ 3 , 2 5 6 , 6 0 0 2093 2 0 9 5 $ 2 1 , 8 0 2 , 2 8 7 $ 2 1 , 8 0 2 , 2 8 7 70 L a n d  Ac q u i s i t i o n  fo r  Po t e n t i a l  La u n c h  Ra m p O t h e r 0 E A 1                                         $0 * * 8 0 5 $ 0 2 0 2 0 2 0 2 3 $ 0 $ 0 TO T A L $151,148,534 $ 2 4 2 , 1 1 4 , 5 2 0 $15,244,568 $ 2 2 7 , 2 9 0 , 9 5 2 I: \ U s e r s \ F I N \ S h a r e d \ A c c o u n t i n g \ F u n d s \ 2 4 0 _ T i d e l a n d s  Ca p i t a l _ 1 0 1 \ H a r b o r  Ca p i t a l  Pr o j e c t  Fi n a n c i n g  Pl a n \ H a r b o r  an d  Be a c h e s  Ca p i t a l  Pl a n n i n g  v2 0 1 8 _ 0 3 _ 1 5 3  of  4 34 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 20 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 AF F O R D A B I L I T Y  AS S U M P T I O N S Ti d e l a n d s  Ca p i t a l  Fu n d  Re v e n u e s 2,3 1 6 , 6 6 4                                     2, 3 5 1 , 4 1 4                                  2, 3 8 6 , 6 8 6                                       2,4 2 2 , 4 8 6                                        2, 4 5 8 , 8 2 3                                     2,4 9 5 , 7 0 6                                        2, 5 3 3 , 1 4 1                                     2,5 7 1 , 1 3 8                                        2,609,705                                       2,648,851                  2,688,584                    2,728,912                    2,769,846                      2,811,394                    2,853,565                  Gr o w t h  As s u m p t i o n 1. 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % 1 . 5 0 % HA R B O R  CA P I T A L  SO U R C E S Be g i n n i n g  Ha r b o r  Ca p i t a l  Ba l a n c e 15 , 3 1 0 , 4 0 2                                 20 , 5 1 3 , 8 8 3                             24 , 3 9 0 , 3 5 5                                  28 , 9 8 1 , 3 5 1                                 33 , 8 4 9 , 3 5 2                               35 , 4 0 3 , 2 9 9                                 39 , 2 1 0 , 0 2 2                               45 , 0 0 5 , 6 5 2                                 44,212,324                                 34,986,470                33,120,071                 39,788,973                 43,278,926                    30,790,999                 13,560,064                So u r c e s In c r e m e n t  Re v e n u e  Pr o j e c t i o n s 2 , 3 1 6 , 6 6 4                                     2, 3 5 1 , 4 1 4                                 2, 3 8 6 , 6 8 6                                        2,4 2 2 , 4 8 6                                       2, 4 5 8 , 8 2 3                                     2,4 9 5 , 7 0 6                                       2, 5 3 3 , 1 4 1                                     2,5 7 1 , 1 3 8                                       2,609,705                                       2,648,851                  2,688,584                    2,728,912                    2,769,846                      2,811,394                    2,853,565                  In t e r e s t  Ea r n i n g s Ge n e r a l  Fu n d  Co n t r i b u t i o n s 2,5 0 0 , 0 0 0                                     3, 5 0 0 , 0 0 0                                 4, 5 0 0 , 0 0 0                                        5,5 0 0 , 0 0 0                                       6, 0 0 0 , 0 0 0                                     6,0 0 0 , 0 0 0                                       5, 5 0 0 , 0 0 0                                     5,5 0 0 , 0 0 0                                       5,500,000                                       4,500,000                  4,500,000                    4,500,000                    4,500,000                      4,500,000                    4,500,000                  Pe r i o d i c  GF  or  On e ‐tim e  Tr a n s f e r s 1 , 5 0 0 , 0 0 0                                     Gr a n t s 82 , 0 0 0                                                 45 1 , 0 0 0                                         28 7 , 0 0 0                                              1,4 3 4 , 9 5 7                                       7, 8 9 9 , 7 6 2                                     5,0 6 3 , 5 9 9                                       26 , 2 5 0                                               ‐                                                               ‐                                                               ‐                                ‐                                 ‐                                 ‐                                   ‐                                 ‐                              To t a l  So u r c e s : 6, 3 9 8 , 6 6 4                                     6, 3 0 2 , 4 1 4                                 7,1 7 3 , 6 8 6                                      9, 3 5 7 , 4 4 3                                     16 , 3 5 8 , 5 8 5                               13 , 5 5 9 , 3 0 4                                 8,0 5 9 , 3 9 1                                   8, 0 7 1 , 1 3 8                                     8,109,705                                     7,148,851                  7,188,584                   7,228,912                   7,269,846                     7,311,394                   7,353,565                  Us e s De b t  Se r v i c e (1 , 0 0 0 , 0 0 0 )                                   (1 , 2 5 0 , 0 0 0 )                               (1 , 2 5 0 , 0 0 0 )                                    (1 , 2 5 0 , 0 0 0 )                                   (1 , 2 5 0 , 0 0 0 )                                 (1 , 2 5 0 , 0 0 0 )                                   (1 , 2 5 0 , 0 0 0 )                                 (1 , 2 5 0 , 0 0 0 )                                   (1,250,000)                                   (926,659)                   (500,000)                     (500,000)                      ‐                                   ‐                                 ‐                              Ot h e r  Fis c a l  Ch a r g e s ‐                                                             ‐                                                           ‐                                                                ‐                                                               ‐                                                             ‐                                                               ‐                                                             ‐                                                               ‐                                                               ‐                                ‐                                 ‐                                 ‐                                   ‐                                 ‐                              Pr o j e c t  Us e s (1 9 5 , 1 8 3 )                                         (1 , 1 7 5 , 9 4 2 )                               (1 , 3 3 2 , 6 8 9 )                                    (3 , 2 3 9 , 4 4 2 )                                   (1 3 , 5 5 4 , 6 3 8 )                             (8 , 5 0 2 , 5 8 1 )                                   (1 , 0 1 3 , 7 6 1 )                                 (7 , 6 1 4 , 4 6 6 )                                   (1 6 , 0 8 5 , 5 5 9 )                               (8,088,591)                (19,681)                       (3,238,960)                 (19,757,773)                 (24,542,329)               (8,644,895)                Le s s :  Ca s h  Pr o j  Fu n d i n g To t a l  Us e s : (1 , 1 9 5 , 1 8 3 )                                 (2 , 4 2 5 , 9 4 2 )                               (2 , 5 8 2 , 6 8 9 )                                    (4 , 4 8 9 , 4 4 2 )                                   (1 4 , 8 0 4 , 6 3 8 )                           (9 , 7 5 2 , 5 8 1 )                                   (2 , 2 6 3 , 7 6 1 )                                 (8 , 8 6 4 , 4 6 6 )                                   (1 7 , 3 3 5 , 5 5 9 )                               (9,015,250)                (519,681)                    (3,738,960)                 (19,757,773)                 (24,542,329)              (8,644,895)                     Pr o j e c t e d  Ha r b o r  Ca p i t a l  Ba l a n c e   20 , 5 1 3 , 8 8 3                        24 , 3 9 0 , 3 5 5                    28 , 9 8 1 , 3 5 1                         33 , 8 4 9 , 3 5 2                         35 , 4 0 3 , 2 9 9                       39 , 2 1 0 , 0 2 2                         45 , 0 0 5 , 6 5 2                       44 , 2 1 2 , 3 2 4                         34,986,470                         33,120,071           39,788,973             43,278,926             30,790,999               13,560,064             12,268,733           HA R B O R  & BE A C H E S  MA S T E R  PL A N  SO U R C E S  AN D  US E S  PR O F O R M A 4  of  4 I:\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2018 FC Workplan 1 Updated 3/12/2018 Scheduled Date Agenda Title Agenda Description Tuesday, January 09, 2018 Council Study Session 9th - Economic Overview (Optional)Broad Local Economic Overview to be provided by Beacon Economics. Thursday, January 11, 2018 Risk Based Reserve Analysis Overview Consultant will provide an update and overview of the Risk -based Reserve Analysis. Consultant Overview of Property and Sales Tax Revenues Consulting specialists in Property and Sales Tax will provide an overview of revenue prospects. Long Range Financial Forecast (LRFF)City staff will provide an update on efforts to improve the City's Long Range Financial Forecast and provide a comparative review of best practices to other cities. Review of Finance Committee Resolution The Committee will review its objectives as set forth in Council resolution 94- 110 as amended by 2017-58. Review of Finance Committee Workplan Staff will review with the Committee the agenda topics scheduled for the remainder of the fiscal year and highlight those work plan items that were carried forward from the prior fiscal year. The Committee will also consider setting up a subcommittee to review finance related Council Policies. Monday, January, 29, 2018 Council Goal Setting Session - (FYI Only) Thursday, February 15, 2018 Create a Subcommittee to Review Council Finance Policies The Finance Committee will consider the creation of a Finance Subcommittee to review Council Finance policies,discuss membership,scope of work and timeline. Risk-Based Reserve Subcommitte Update Discuss Finance Committee progress since the last meeting. Debt Policy Review Subcommittee Update Subcommittee will discuss revisions of Debt Policy and discuss next steps. Review of Police Department Budget to Actual Results In preparation of the 2018-2019 Budget,staff will review budget assumptions against actual results for Fiscal Year 2016-2017 and pertinent updates concerning the Fiscal Year 2017-2018 to date. Year-End Closing Results Staff will present year-end closing results for Fiscal Year 2016-2017. Pension Discussion Agenda item reserved for discussion regarding the status of the City's pensionliability, payment strategies, CalPERS policy updates and or advocacy efforts. Review of Finance Committee WorkPlan Staff will review with the Committee the agenda topics scheduled for the remainder ofthe fiscal year and highlightthose work plan items carriedforward from the prior fiscal year.The Committee will also consider setting up a subcommittee to review finance related Council Policies. MARCH Thursday, March 15, 2018 Audit Closing The City’s external audit firm, White Nelson Diehl Evans LLP will meet with the Finance Committee to discuss the audit findings for the fiscal year ending 6/30/2017. The committee will have an opportunity to discuss any potential areas of concern and the auditors can discuss any changes in accounting standards or disclosures that were relevant for the audit year. Harbor & Beaches Master Plan Review Harbor & Beaches Master Plan for financial solvency based on known Council Priorities Review of Fire Department Budget to Actual Results In preparation of the 2018-19 Budget, staff will review budget assumptions against actual results for fiscal year 2016-17. Facilities Financial Plan Review Facilities Financial Plan for financial solvency based on known Council Priorities Pension Discussion Agenda item reserved for discussion regarding the status of the City's pension liability, payment strategies, CalPERS policy updates and or advocacy efforts. APRIL Thursday, April 5, 2018 Submit Budget Documents to Finance Committee - Information Only ** NOT A MEETING DATE ** Information Only - Not a meeting date. Thursday, April 12, 2018 Finance Committee Budget Review MAY Thursday, May 10, 2018 Finance Committee Budget Review Agreed Upon Audit Procedures for Internal Control The Finance Department is working with the City’s audit firm, White Nelson Diehl Evans LLP, to develop agreed upon procedures for the audit of the City’s internal control processes and procedures. Staff will present these agreed upon procedures for the Finance Committee’s review. Harbor & Beaches Master Plan Review Harbor & Beaches Master Plan for financial solvency based on known Council Priorities Tuesday May 22, 2018 Council Budget Study Session (Joint FC Study Session ?) Thursday, May 31, 2018 Reserved For Policy Discussion(s) JUNE Tuesday, June 12, 2018 Council Budget Adoption For Information Purposes Only - Not a Finance Committee Meeting Date Thursday June 14, 2018 Reserved For Policy Discussion(s) JANUARY FEBRUARY City of Newport Beach Finance Committee Work Plan 2017-18 - DRAFT