BANNING RANCH
RESOLUTION
Presentation by:
Alex Gonzalez, Chief of Staff
01/18/2022
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2 BANNING RANCH RESOLUTION
Requested by Council Member Arlis Reynolds
City Council consider adopting a resolution in support of the acquisition of Banning Ranch by the Trust for Public Land
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3 WHY SUPPORT BANNING RANCH?
Largest piece of privately owned land in Southern California; adjacent to Newport Beach and Costa Mesa at mouth of Santa Ana River; thriving natural habitat for native flora and fauna
Historical and cultural significance as the ancestral homeland of the Tongva and Acjachemen Nations known as Genga
“Preservation, acquisition, conservation, and management of entire of Banning Ranch as permanent public open space, park, and coastal nature preserve.”
Supports the City Council’s goal of increasing park and open space access
WWW.TOWNSENDPA.COM
SACRAMENTO • WASHINGTON, DC
NORTHERN CALIFORNIA • CENTRAL CALIFORNIA • SOUTHERN CALIFORNIA TPA Presentation to the City of
Costa Mesa
January 18, 2022
Slide
2 Presentation Overview
New Districts
State Legislative and Budget Update
Ballot Process Overview
Federal Update
City Funding
Slide
3 New Districts
Slide
4 Costa Mesa
–
47 th
Congressional District
•Includes the whole Cities of Costa Mesa, Huntington Beach, Irvine, Newport Beach, and Seal Beach, and portions of Laguna Beach, Laguna Hills, and Laguna Woods.
Slide
5 Costa Mesa
–
37 th
Senate District
•Includes the whole Cities of Aliso Viejo, Costa Mesa, Irvine, Laguna Niguel, Laguna Woods, Lake Forest, Tustin, and Villa Park, and portions of the Cities of Anaheim, Fullerton, Orange, Placentia, Santa Ana, and Yorba Linda.
Slide
6 Costa Mesa
–
73 rd
Assembly District
•Includes the whole Cities of Costa Mesa and Irvine as well as portions of the City of Tustin
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7 State Legislative and Budget Update
Slide
8 2021 State Legislative Re
-
Cap
Housing
Brown Act/Local Governance Flexibility
Municipal Broadband
Wildfire Prevention and Intervention
Economic Recovery
Slide
9 2022 State Legislative Calendar
•Legislature returned January 3, 2022
•Governor presented January Budget proposal on January 10 •February 18: bill introduction deadline
•Budget/Policy committees hold hearings
•May Revise
•June 15 budget deadline
•July 1: New fiscal year/July recess
•August 31: end of session
•September 30 bill signing deadline
•November 8 General Election
Slide
10 Governor’s January Budget Proposal Highlights
•COVID-19 Relief: $2.7 billion
–Testing, vaccine distribution, healthcare workers, contact tracing •Climate Resiliency: $4.7 billion
–Wildfires, drought, forest health
•Public Safety: $339 million
–Grants for retail crime prevention, earthquake warning system, Southern California emergency response center
•Transportation: $4.9 billion
–ZEVs, high-speed rail, climate adaptation, bicycle/pedestrian projects •Homelessness/Housing: $4 billion
–Sustainable, dense, affordable housing, homeless shelters, encampments •Healthcare
–Single-payer vs universal access; $2.7 billion for undocumented immigrants (Medi-Cal gap closure)
Slide
11 2022 Key State Issues
Housing/Homelessness
Economic Recovery
Climate Resiliency
Wildfire Prevention and Intervention
Ballot Measures
Slide
12 Ballot Process Overview
Slide
13 Ballot Initiative Process
• CA ballot initiative process
started in 1911
• State Constitution outlines
initiative, referenda, and
recall powers
• Over the years, the
number of proposed initiatives has increased, but qualifying initiatives have decreased
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14 Qualifying for the Ballot
Draft Initiative
• Proponents draft initiative text
Title and Summary Request
• Initiative text must be submitted to Attorney General • 30-day public review
Title, Summary, and Fiscal Estimate
• After review, Attorney General prepares official title and summary • Department of Finance and LAO prepare fiscal summary
• Secretary of State provides “official summary date”
Slide
15 Qualifying for the Ballot
Signature Gathering
• Once cleared for circulation, signature gathering begins • Must secure required signatures within 180 days
•2022 Constitutional amendment initiatives require 997,139 signatures
•2022 initiative statutes require 623,212 signatures
Submit and Verify Signatures
• County election officials report signature amounts to Secretary of State • If required signature count is met, counties verify
Qualifying
• Secretary of State and counties verify valid signatures • Raw vs valid signatures are determined
Slide
16 Qualifying for the Ballot
• If 25 percent of required signatures are
gathered, proponents must report to
Secretary of State
• Legislature will be notified and required to
assign initiative to relevant committees
• If required signatures are gathered,
verification process begins
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17 Federal Update
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18 2021 Federal Legislative Re
-
Cap
American Rescue Plan Act
Federal Funding and Debt Ceiling
Police Reform
Infrastructure Package
Reconciliation Package
Slide
19 2022 Key Federal Issues
• 117th Congress, 2nd Session
• February 18: Continuing
Resolution expires
• FY 2022-23 Funding
• Build Back Better Legislation
• Stimulus Package
• Transportation Package
• Federal Earmarks – Community Project Funding
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20 City Funding Highlights
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21 TPA
-
Costa Mesa Funding Highlights
2021
$2.5 million – State Budget
Costa Mesa Regional Fire and Rescue Training Facility
$664,000 – Assistance to Firefighter Grant
Fire Equipment
2020
$1 million – State Budget
Lions Park
$80,000 – AFG-S
COVID-19 relief and PPE
2019
$1.1 million – Active Transportation Grant
Merrimac Way
$148,000 – Mobile Source Air Pollution Grant
EV Infrastructure
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22 California Advocacy | Federal Advocacy | Grant Writing www.TownsendPA.com | (949) 399-9050
THANK YOU
Sean McReynolds
Senior Associate
[email protected]
Housing Element Update
2021-2029
City Council Hearing
January 18, 2022
Agenda
• Housing Element
Background
• Housing Element
Update Process
• HCD Review and
Responses
• Next Steps
• Q&A and Staff
Recommendation
2 Housing Element Background
3 Costa Mesa’s 2021-2029 RHNA Allocation
Income Category % of Area Median
Income (AMI) Income Range* RHNA Allocation
(Housing Units)
Min. Max.
Very Low Income 0 - 50% AMI -- $53,350 2,919
Low Income 51 – 80% AMI $53,350 $85,360 1,794
Moderate Income 81 – 120% AMI $85,360 $128,040 2,088
Above Moderate Income >120% AMI $128,040 -- 4,959
Total: 11,760
*Income range is based on the 2021 HUD Median Family Income (MFI) for Orange County of $106,700. 4 Established Housing Goals
•Housing Goal #1:
Preserve and enhance the
City’s existing housing
supply.
•Housing Goal #2:
Creation and availability of
housing for residents at all
income levels and those
with special housing
needs.
5 Established Housing Goals
•Housing Goal #3: Identify
adequate sites for residential
use to meet the City’s
Regional Housing Needs
Assessment (RHNA)
•Housing Goal #4: Provide
housing opportunities to
residents of all social and
economic segments of the
community without
discrimination.
6 Housing Element Update
Process
7 Housing Element Update Process
• Housing Element Update kickoff in Summer 2020
• Summary of Community Outreach
• Two virtual townhalls in November 2020 and September 2021 • Community Survey with 465 responses
• Subject Matter Expert Meetings throughout February 2021 • District Specific Meetings in February 2021
• Targeted Focus Group Meetings throughout the update process • Individual Planning Commission and City Council Study Sessions in March 2021 • Joint Planning Commission and City Council Study Sessions in April and September 2021
• Housing Element was submitted to HCD in October 2021 and a comment letter was received on December 6th,2021.
8 Summary of Outreach and
Public Comments
• Overall, the City needs more housing and more
affordable
• Housing should be focused on improving quality
of life for residents
• Accessory units can provide more affordable
housing opportunities
• Additional active transportation options should
be considered with additional housing
• Need education about affordable housing to
increase awareness and understanding
9 Summary of Outreach and
Public Comments
• Senior housing should be prioritized, followed by
housing for persons with disabilities
• Need supportive services along with housing
• Overcrowding often occurs and there is a need
for multigenerational living
• More affordable housing near transit and jobs
• Overall need for more affordable housing for
residents of Costa Mesa, both for renters and
owners
10 HCD Housing Element
Update Submittal
• HCD Housing Element Update
Draft submitted on October 6,
2021
• City received HCD comments
on December 6, 2021
• City staff has addressed HCD
comments
• Follow up meetings with HCD
anticipated to seek compliance
11 HCD Review and Responses
12 Response to HCD
Comments - Summary
•Candidate Sites did not change
• ADU assumptions were lowered
• Additional data provided in support of
ADU projections
•More specific on Program timing
•Additional Analysis for Non-vacant
candidate sites
•Supplement with additional fair
housing information
• Analyze trends and patterns related to
access to education and mobility
• List and prioritize local contributing
factors to fair housing issues
• Programs to address housing for special
needs groups and persons disabilities
•Housing Programs added or modified
13 Response to HCD
Comments
• Non-vacant candidate sites and
opportunity for redevelopment
• Added current FAR analysis
• Added an analysis of current market trends
• Added small site analysis
• Fair Housing local data and knowledge
• Added analysis of areas of high
segregation and poverty
• Included local data and findings of
community outreach
14 Response to HCD
Comments
• Analyze trends and patterns related
to access to education and mobility
• Additional transit analysis added to the
AFFH section and a spatial analysis of
educational opportunities included
• List and prioritize local contributing
factors to fair housing issues
• Local contributing factors were derived
and updated with the new analysis and
data added to AFFH
15 Response to HCD
Comments
• Programs to address housing for
special needs groups and persons
disabilities
• Added program to update the Municipal
Code regarding transitional and
supportive housing for consistency with
state requirements
16 Program Actions Added
• Additional City actions in response to HCD
comments include:
• 2J: Include transitional and supportive housing as
separate use in land use matrix per State law
• 2K: Review of planning application fees
• 2L: Development of housing for extremely low-
income households
• 2M: Review and revise parking standards for multi-
family housing
• 2N: Review and revise reasonable
accommodation process to be consistent with
State and Federal fair housing laws
• 4I: Work with local organizations to connect low
opportunity areas to resources
18 Program Actions Modified
• Additional City actions in response to HCD
comments include:
• 3A: Candidate housing sites information and
specific actions to encourage housing
• 3B: Fairview Developmental Center process
• 3E: Promote ADUs and modification of
ordinance based on pending State feedback
• 3F: Project Homekey information added to the
Motel Conversion program
• 3G: Measure Y identified as constraint to
housing per HCD
17 Planning Commission
Hearing Feedback
19 Planning Commission Feedback
• Add Projects in the Pipeline
• Table B-2 added for completed projects since June
30, 2021
• Added section on projects in the pipeline and other
housing efforts
• Added staff-recommended language in
Program 3E re: a potential modification of the
ADU Ordinance
20 Next Steps
22 Submit document to HCD for
final certification.
Housing Element to City
Council for consideration for
local adoption
Coordination with HCD on City responses and revisions
Q&A and Staff Recommendation
23 FISCAL YEAR 20-2021
FINANCIAL
PERFORMANCE
AND
AUDITED FINANCIAL
REPORTS
January 18, 2022
CITY FINANCE OVERVIEW
Fiscal year from July 1 to June 30
Fiscal year 2020-21 adopted budget appropriation: $136.6 million – General Fund; $163.8 million - all funds
Generally Accepted Accounting Principles (GAAP) based municipal accounting
Governmental Accounting Standards Board (GASB) regulates municipal accounting and sets forth reporting requirements for audited financial statements
A “Fund” in municipal accounting is a set of accounts used to track and segregate resources for specific activities and purposes Governmental fund types:
General Fund Debt Service Fund
Special Revenue Fund Internal Service Fund
Capital Projects Fund Custodial Fund
1 GOVERNMENTAL FUND ACCOUNTING
General Fund – chief operating fund for governmental general purposes. Tax revenue is the primary source of its revenue. Important to monitor the fund balance of the General Fund.
Special Revenue Fund –track revenues from specific sources restricted for certain purposes (i.e. grants)
Capital Projects Fund – used to track large capital projects Debt Service Fund – used to pay long term debt obligations Internal Services Fund – collect revenues from departments to pay for services to all City departments (i.e. vehicle replacement, risk management and technology)
Custodial Fund - used to account for funds held by the City in a fiduciary capacity, previously known as “Agency Fund”
2 FY 2020-2021 AUDIT OVERVIEW
Annual financial audit conducted by Davis Farr
LLP , an independent accounting firm
Audit covers the City’s financial statements and
internal controls
FY 20-21 ACFR received an unmodified (clean)
opinion – the highest opinion possible
The City’s ACFR is award winning – received
GFOA Certificate of Achievement for Excellence
in Financial Reporting for the past 23 years
3 CITY OF COSTA MESA
Presentation of Audit Results
AUDIT REPORTS ISSUED
Separate Financial Reports
for the Public Financing
Authority, Financing Authority
and Housing Authority
AQMD Compliance Report
Gann Letter Agreed-Upon
Procedures
Letter to Those in Charge of
Governance
Reports in Progress:
Single Audit of Federal
Awards
Internal Control
Communications
4 AUDIT OPINION
6 AUDIT PROCEDURES
General government audit approach:
Substantively testing all material assets,
liabilities, deferred outflows, and deferred inflows
Analytically testing revenues and expenses
Compliance testing
Risk based auditing – current year approach
included:
Pension and OPEB obligations
Implementation of new accounting standard
COVID-19 grant funding
5 NEW ACCOUNTING STANDARD
(GASB 84)
5 REVIEW OF INTERNAL CONTROLS
Auditors do not express an opinion on internal
controls
Internal controls report is issued when the
Single Audit of Federal Awards is completed
7 Reviewed internal controls over key accounting
cycles
Cash receipting
Cash
disbursements
and purchasing
Payroll
Investing Information
systems
Grant
management
AUDIT RESULTS ON COMPLIANCE
No material instances of non-compliance with
laws and regulations that are direct and material to
the financial statements
General fund expenditures did not exceed the
City Council approved budget
No purchasing compliance issues identified
No investment compliance issues identified
No debt compliance issues identified
Pending single audit compliance testing
8 FISCAL YEAR 2020-
2021 FINANCIAL
PERFORMANCE
REVIEW
Carol Molina
Finance Director
FINANCIAL RESULTS – GENERAL FUND
ACTUALS FY 2019-20 VS. FY 2020-21
10 Note:
1) Operating Expenses difference is due to budget cuts that were offset by the ARPA Fund and cancelled City events due to COVID 2) Total Transfers increased due to ARP-eligible expenses that transferred into the General Fund
FUND BALANCE IN GENERAL FUND
(IN MILLIONS)
11 FINANCIAL RESULTS
ALL FUNDS
DISASTER FUND REPORTING
FUND 150
12 AMERICAN RESCUE PLAN ACT FUND
REPORTING
12 STRATEGIZING ARPA FUNDING
FINANCIAL RESULTS – ALL FUNDS
FY 20-21
14 RECAP
Balanced the General Fund, ending the year with a slight $28,593, or 0.02%, surplus
Tracked all COVID-related expenditures to Disaster
Fund 150, and ARPA Fund 204
Utilized ARPA funds to reinstate City services
Still have ARPA Funds of $13.1 million that is available to utilize into Fiscal Year 2022-23
15 FY 2020-21
FINANCING AUTHORITY
FINANCIAL STATEMENTS
AND
OPERATING RESULTS
January 18, 2022
OVERVIEW
• Financing Authority Description
• Operating Results
• Audit Opinion
1 FINANCING AUTHORITY
• Separate legal entity formed in 2017 by a Joint Powers Agreement between the City and the Housing Authority
• Holds the 2017 Lease Revenue Bonds which provided partial funding for the Lions Park Projects ($24,850,000 outstanding debt)
• Financial activity consists of lease revenues collected from the City and debt service payments on the bonds of approximately $1.6 million annually. • Bonds will mature in 2042.
2 FISCAL YEAR 2020-21
FINANCING AUTHORITY OPERATING RESULTS
3 Beginning Fund Balance, July 1 43$
Total Revenues 2,814,508
Less: Debt Service Payments 2,814,550
Operating Results (42)$
Ending Fund Balance, June 30 1$
AUDIT OPINION
The Housing Authority received an unmodified opinion from David Farr LLP , an independent certified public accounting firm. This is the highest and cleanest attestation report given by independent auditors.
The reports that deal with compliance information also
received unmodified opinions and no findings were noted. 1 QUESTIONS
January 18, 2022
FY 2020-21 HOUSING
AUTHORITY
FINANCIAL
STATEMENTS AND
OPERATING RESULTS
January 18, 2022
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2 OVERVIEW
•Housing Authority Description
•Operating Results
•Audit Opinion
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3 HOUSING AUTHORITY
•Separate legal entity formed by the City in 2012 under California Health and Safety Code 34200.
•Serves as the housing successor to the dissolved Costa Mesa Redevelopment Agency (RDA) and holds the former RDA’s housing assets. •LMIHAF expenditures limits are set by Health and Safety Code and subject to State annual reporting.
•Accounts for City’s homeless outreach and bridge shelter operations. •Expenditures above LMIHAF limits are funded by other sources. v
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4 HOUSING AUTHORITY OVERVIEW
Programs previously held by the former RDA:
• First time homebuyers program
• Single family rehabilitation program
• Federal Neighborhood Stabilization Program (NSP)
• Costa Mesa Family Village (ground lease)
• Costa Mesa Village
• Habitat for Humanity loan program
• James Street/W. 18th Street property (rental)
• Affordable Housing administration
New Programs as of FY 2019-2020:
• Homeless Outreach
• Homeless Bridge Shelter Operations
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5 FISCAL YEAR 2020-21
HOUSING AUTHORITY OPERATING RESULTS
4 FY 20-21
Adopted FY 20-21
Budget Actual Difference
Beginning Fund Balance, July 1 3,640,616$ 3,640,616$ -$ Total Revenues 3,060,993 3,649,361 588,368
Less: Total Operating Expenses 3,129,109 3,574,792 445,683 Operating Results (68,116)$ 74,569$
Ending Fund Balance, June 30 3,572,500$ 3,715,185$
All Programs
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6 FISCAL YEAR 2020-21
HOMELESS SERVICES OPERATING RESULTS
COMPARED TO PRIOR YEAR
5 FY 19-20 FY 20-21
Actual Actual Difference
Total Homeless Services Revenues 2,693,636$ 2,751,372$ 57,736$ Expenditures
Homeless Outreach 20605
Salaries and Benefits 723,081$ 738,444$ 15,363$ Operations and Maintenance 159,169 78,372 (80,797) Fixed assets 424 - (424)
Total Homeless Outreach Expenditures 882,674 816,816 (65,858) Bridge Shelter Operations 20606
Operations and Maintenance 1,810,962 1,934,556 123,594 Total Bridge Shelter Expenditures 1,810,962 1,934,556 123,594 Total Homeless Services Expenditures 2,693,636$ 2,751,372$ 57,736$ v
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7 AUDIT OPINION
The Housing Authority received an unmodified opinion from David Farr LLP, an independent certified public accounting firm. This is the highest and cleanest attestation report given by independent auditors.
The reports that deal with compliance information also received unmodified opinions and no findings were noted.
QUESTIONS
January 18, 2022