HomeMy WebLinkAboutFinance Committee Agenda - May 4, 2016CITY OF NEWPORT BEACH
FINANCE COMMITTEE AGENDA - Final
100 Civic Center Drive - Newport Coast Conference Room, Bay 2E
Wednesday, May 4, 2016 - 4:00 PM
Finance Committee Members:
Tony Petros, Chair / Council Member
Diane Dixon, Mayor
Keith Curry, Council Member
Patti Gorczyca, Committee Member
William C. O’Neill, Committee Member
Larry Tucker, Committee Member
John Warner, Committee Member
Staff Members:
Dave Kiff, 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.CURRENT BUSINESS
May 4, 2016
Page 2
Finance Committee Meeting
FISCAL YEAR 2016-2017 BUDGET DISCUSSIONA.
Summary:
Continue review of the City Manager’s Fiscal Year 2016-2017 Proposed Budget.
Recommended Action:
Staff recommends that the Committee (1) direct staff to bring the Fiscal Year
2016-2017 Proposed Budget for City Council for consideration; (2) continue to
review the budget at subsequent Finance Committee meetings; or (3) both of the
aforementioned options.
SUBCOMMITTEE RECOMMENDATIONSB.
Summary:
An update will be provided regarding the Finance Subcommittee.
Recommended Action:
Receive and file.
V.FINANCE COMMITTEE ANNOUNCEMENTS ON MATTERS WHICH MEMBERS
WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR
REPORT (NON-DISCUSSION ITEM)
RECOMMEND THE CITY HIRE AN INDEPENDENT ACTUARY TO ADVISE,
EDUCATE AND DEVELOP STRATEGIES TO MANAGE ITS PENSION AND
OPEB.
A.
RECOMMEND THE CITY CONSULT WITH AN INDEPENDENT THIRD PARTY
AGENCY (E.G., ORANGE COUNTY AUDITOR CONTROLLER’S OFFICE,
CONSULTANT, GFOA, OR A REGISTERED INDEPENDENT MUNICIPAL
ADVISOR) TO EITHER (1) REVIEW THE CITY’S DEBT ISSUANCE
PROCEDURES AND PROVIDE RECOMMENDATIONS TO IMPROVE AND
INCORPORATE BEST PRACTICES FOR DEBT ISSUANCE AND
ADMINISTRATION INTO THE CITY’S POLICIES AND PROCEDURES; (2)
EVALUATE THE ECONOMIC FEASIBILITY OF REDUCING AMOUNT OF
OUTSTANDING CERTIFICATES OF PARTICIPATION; OR (3) BOTH.
B.
VI.ADJOURNMENT
Correspondence
Administrative Record
Finance Committee Meeting
May 4, 2016
FY 2016-17 PROPOSED BUDGET
City of Newport Beach
Finance Committee
May 4, 2016
Item No. 4A1
Fiscal Year Budget Discussion
Staff Presentation
May 4, 2016
Salary & Benefit Assumptions
•Medicare is 1.45% of gross Medicare earnings, paid by
employer and employee.
•Compensated Absence rate is 3.5% of base pay and is
used to fund cash out of accumulated leave typically at
separation from employment.
•Workers’ Compensation premium rates are unchanged.
Rate study is being completed with new rates anticipated
in FY 18.
•Part-time retirement contribution is 7.5% of gross pay,
paid by both employer (3.75%) and employee (3.75%).
2
Salary & Benefit Assumptions
•Other Post Employment Benefits (OPEB) budgeted based
on actuarial valuation. Additional contribution of $1 million
funded in FY 16, so FY 17 change in department OPEB
expense is not material, about $80,000.
•FY 17 cost of cafeteria allowance program up 7.23% over
FY 16 or $1 million.
3
FY 17 PERS Rates - Miscellaneous
4
Tier Member Normal
Unfunded
Liability
Employee
Contribution Net Cost to City
1 10.420%5.800%19.406%12.35% to 12.85%22.776% to 23.276%
2 7.000%8.220%19.406%12.35% to 12.85%21.776% to 22.276%
3 6.250%8.220%19.406%12.35% to 12.85%21.026% to 21.526%
Tier Member Normal
Unfunded
Liability
Employee
Contribution Net Cost to City
1 9.000%18.077%42.210%10.875% to 14.6%55.687% to 58.412%
2 9.000%18.077%42.210%10.875% to 14.6%55.687% to 58.412%
3 11.250%18.077%42.210%10.875% to 14.6%56.937% to 60.662%
FY 17 PERS Rates - Safety
FY 17 Cost of Living Adjustments
5
Safety BU COLA %July Jan Misc BU COLA %July Jan
PA 2.50%$391,775 CEA 2.65%$80,785
PMA 2.50%$55,953 Prof Tech 2.65%$107,332
FMA 2.75%$7,843 League 2.65%$100,861
LMA 2.50%$23,334 K&M 2.65%$116,442
FA 2.75%$154,524 ANBOL 1.00%$14,490
Safety BU $ Impact $415,109 $218,320 Misc BU $ Impact $14,490 $405,420
FY 17 $ Impact FY 17 $ Impact
Total FY 17 COLA Increase:$1,053,340
Note: PTEANB has not yet begun negotiations.
Cafeteria Allowances (FY 17 Annual)
6
Med Allow
(All)
CEA
Cafeteria
ProfTech
Cafeteria
LMA
Cafeteria
FMA
Cafeteria
PA
Cafeteria
$1,500 (810)
1- $12,000
2- $12,000
3- $19,500
1- $12,000
2- $12,000
3- $19,500
1- $ 7,200
2- $14,988
3- $18,288
1- $12,000
2- $12,000
3- $17,088
1- $12,000
2- $12,000
3- $18,288
FA
Cafeteria
League
Cafeteria
K & M
Cafeteria
PMA
Cafeteria
NBPTEA
Allowance
Council
Allowance
1- $12,000
2- $12,000
3- $17,088
1- $14,400
2- $14,400
3- $19,200
1- $12,000
2- $12,000
3- $19,500
1- $12,000
2- $12,000
3-$17,088
1- $4.50 hr
2- $3.75 hr
Amt to
cover cost
of health
premium
Maintenance & Operations
7
•Additional line items for specific contracts included in this
budget, i.e., Animal Shelter, Meter Reading.
DEPARTMENT REVIEW
Fiscal Year 2016-17
8
City Council
•Council Allowance Increase = 1.1%
(based on May Consumer Price Index).
•Contract Services (811008) budget
increased in FY 16 for Civic Center Audit.
•No supplemental budget requests.
9
City Clerk
•Contract Services (811008) budget
increased in FY 16 for records retention
contract.
•General Expenses (871002) advertising of
public hearings, resolutions, ordinances,
etc., increased and expense based on
projected advertising needs.
•General election is budgeted in FY 17.
10
City Clerk
•Supplemental budget request to add three
staff members to manage Public Records
Act Requests and records retention issues
was not approved at this time.
Development of a plan is underway.
11
City Manager
•No material increases or decreases to City
Manager or PIO divisions other than salary
and benefits. Maintenance & operations
budget transferred between objects.
•Economic Development Division Special
Department Expense (841046) increase of
$60,000 due to increased City contribution to
the CdM Business Improvement District (BID)
and to the NB Restaurant Association BID
and outsourcing of bookkeeping.
12
City Manager
•Supplemental budget request approved to
reorganize Information Technology staffing to
better meet market rates and organizational
needs ($32,987).
13
Human Resources
•Funding for Human Resources Director
was split in FY 16 between Human
Resources and the City Manager
divisions.
•Department reduced several line items
including Contract Services (811008) by
$25,000 and Advisory Council (891020) by
$20,000.
14
HR - Supplementals
•Approved:
•Overtime ($4,000)
•City-wide training ($60,000)
•Denied:
•Reinstatement of Department Assistant
position
15
City Attorney
•No material increases or decreases to City
Attorney other than salary and benefits.
•Supplemental budget granted for another
0.5 FTE part-time paralegal position to
assist with Public Records Act Requests
($32,987)
16
Finance
•Parking meter contract increase
($137,000).
•No supplemental budget requests.
17
Police – Budget Changes
•Emergency Services Coordinator position
transferred from Fire to Police in FY 16.
18
Police – Approved Supplementals
•New in-car computers for 60 vehicles
($360,000 from Equipment Fund).
•Replace Mobile Video System ($500,000
from Equipment Fund).
•Motorola 800 MHz Pacsets ($396,000
from Equipment Fund).
•Beach security program ($73,880 transfer
from Recreation).
•Cold Case Investigation contract
($51,000).
19
Police – Approved Supplementals
•Travel & Meetings ($15,000).
•Animal Shelter supplies ($7,000).
•Crime scene clean up ($10,000).
20
Police – Not Approved
•Enhancements to CAD/RMS systems.
•Increase to training budget.
•Perishable medical supplies.
•Forensic phone investigations. Validating
need, may be funded later.
21
Police – Checklist Items
•Civilian Fraud Investigator position
deleted.
•Part-time Community Services Officer
position increased to full-time.
22
Fire – Budget Changes
•Emergency Services Coordinator position
transferred to the Police Department.
•M&O for Life Safety transferred to CDD.
Life Safety Personnel and Salary and
Benefits costs remain in Fire with a 10%
re-allocation of 1 CDD Deputy Director
personnel costs for reporting purposes.
23
Fire – Approved Supplementals
•Surge ambulance during summer months
($110,500).
•Paramedic Assessment Unit at Fire
Station 7 ($69,000).
•Overtime staffing for a Basic Fire
Academy/new hire training ($133,934).
•Overtime associated with MOU changes
($250,000).
24
Fire – Approved Supplementals
•EMS Equipment and Supplies ($99,321).
•Lifeguard Equipment ($26,485).
•Creation of a Fire Equipment Internal
Service Fund ($107,350).
•Community Emergency Response Team
budget was approved ($38,234).
25
Fire – Not Approved
•Increase in Marine Standby Hours.
•Increase in seasonal lifeguard staffing.
•Leadership training for chief officers.
•Transition from analog phones to
broadband internet. Further vetting
needed.
•Supplemental for request for Trauma
Intervention Program membership was
denied.
26
Fire – Checklist Item
•Outsourcing hazardous materials
program. Revenue decrease ($27,250).
27
Community Development (CDD)
•General Plan Update budgeted in CIP
budget at $800,000.
•M&O for Life Safety transferred to CDD
from Fire (New Org 0105043). Life Safety
Personnel and Salary and Benefits costs
remain in Fire with a 10% re-allocation of
1 CDD Deputy Director personnel costs
for reporting purposes.
28
CDD - Supplementals
•Approved:
•New code books ($26,000)
•Denied:
•Building Inspector II position
•Part-time Management Specialist
position (32 hours per week)
29
Municipal Operations (MOD) – Budget
Changes
30
•Five positions eliminated:
•Three Limited Term Groundsworkers
•One Maintenance Worker I
•Utilities General Manager
•Residential refuse contract increase per
agreement
•Parks/Facilities Maintenance contract
increase ($680,000).
•Utilities Water object (831005) reduced
by $174,000
Municipal Operations (MOD) – Budget
Changes
31
•Imported water expense down $1.7 million
•Groundwater expense up $331,000
•Reclaimed water expense up $42,000
MOD Supplementals
32
•Denied:
•Administrative Analyst position
•Equipment Mechanic I position
Public Works – Budget Changes
33
•Marina Park Management contract
increase ($61,200).
Public Works – Approved Supplementals
34
•Reclass one Assistant City Engineer
position ($11,000).
•Reclass Public Works
Finance/Administrative Manager position
($12,000).
•Funding for an intern pool ($17,921).
Public Works – Not Approved
35
•Associate Civil Engineer 5% position.
•Public Works Inspector II position.
•Increase to contract administrative
support.
Library & Cultural Arts
36
•Annual library materials budget
($625,040).
•Annual library programming budgets
($40,500).
Library & Cultural Arts
37
•Supplemental request for increasing the
part-time Literacy Coordinator position to
full-time was denied.
•Supplemental request to replace the
outdoor book drop at Mariners will be
funded through FY 16 budget savings.
Recreation & Senior Services – Approved
Supplementals for General Fund
38
•Decrease 2.72 FTE due to programming
changes and contracting out (-$85,595)
•Contract out Youth Flag Football
programs (-$42,173)
•Lease a new building for 16th Street
Recreation Center ($118,793)
39
•Move PT Office Asst to FT and PT Asst Rec
Coordinator to FT Rec Coordinator at Oasis
Senior Center ($45,545)
•Increase compensation for Rec Supervisor
classification by 6% ($55,024)
•Fund additional nature based programming
(-$6,200)
Recreation & Senior Services – Approved Supplementals for General Fund
40
•Add 0.17 FTE Asst Rec Coordinator to
develop programming for Fostering Interest In
Nature (FiiN) City program ($7,868)
Recreation & Senior Services – Approved Supplementals for FiiN Fund
Internal Service Funds
41
Fund FY 16 FY 17 Change
Equipment Maintenance $1,703,504 $1,922,802 12.9%
Equipment Replacement $3,311,069 $3,081,176 -6.9%
Parking Equipment $354,954 $354,954 0.0%
Recreation Equipment $145,494 $181,348 24.6%
Recreation Infrastructure $31,275 $31,275 0.0%
Information Technology Operating $3,811,703 $4,074,437 6.9%
Information Technology Strategic $994,918 $972,252 -2.3%
Compensated Absences $2,351,948 $2,457,249 4.5%
Retiree/OPEB Insurance $3,845,895 $3,925,087 2.1%
Workers' Compensation $2,753,928 $2,753,928 0.0%
General Liability $4,068,231 $4,068,231 0.0%
Questions & Comments
City’s budget documents can be accessed at:
www.newportbeachca.gov/budget
42
Year Kaiser HMO Blue Shield HMO Blue Shield Net
Value HMO PERSChoice PERS Select PERSCare PORAC Average
Increase
2010 $454.99 $485.29 $420.59 $472.83 $441.41 $806.89 $484.00
2011 $477.95 $567.87 $488.62 $516.28 $451.48 $819.18 $527.00
% Increase 5.05%17.02%16.17%9.19% 2.28% 1.52% 8.88% 8.59%
2012 $512.76 $583.60 $501.93 $526.19 $446.68 $943.26 $556.00
% Increase 7.28%2.77%2.72%1.92% -1.06% 15.15% 5.50% 4.90%
2013 $558.95 $643.93 $550.03 $611.30 $446.49 $992.61 $581.00
% Increase 9.01%10.34%9.58%16.17% -0.04% 5.23% 4.50% 7.83%
2014 $602.79 $543.00 $457.17 $612.25 $586.00 $638.00 $634.00
% Increase 7.84%-15.67%-16.88% 0.16% 31.25% -35.73% 9.12% -2.84%
2015 $579.00 $598.00 $561.00 $594.00 $585.00 $657.00 $675.00
% Increase -3.95%10.13%22.71% -2.98% -0.17% 2.98% 6.47% 5.03%
2016 $605.00 $654.00 $666.00 $683.00 $625.00 $761.00 $699.00
% Increase 4.49%9.36%18.72% 14.98% 6.84% 15.83% 3.56% 10.54%
% Increase:
2010 vs 2016
Premium
32.97%34.76%58.35% 44.45% 41.59% -5.69% 44.42% 35.84%
Annualized
Growth Rate 4.86%5.10%7.96%6.32% 5.97% -0.97% 6.32%5.08%
2010 - 2016 History of Healthcare Premiums for Employee Only Coverage (Year Over Year Increases)
Item No. 4A2
Fiscal Year Budget Discussion
Additional Materials Received
May 4, 2016