May 24, 2022
Item No. 1
City Council
and Finance
Committee
Joint Meeting
May 24, 2022
Budget Emphasizes:
• Providing high quality municipal services that residents expect • Providing a safe and secure neighborhood
• Keeping Newport Beach looking great
• Maintaining a prosperous, fiscally sustainable, and economically viable city
Additional Focus:
• Continued emphasis on elimination of the City's long-term liabilities • Ensuring proper funding of long-term infrastructure maintenance and replacement
• Addressing key City Council priorities identified at the January 29, 20225 City Council Planning Session
City of Newport Beach — Finance Department
Thursday, January 13, 2022
Saturday, January 29, 2022
Tuesday, March 8, 2022
Thursday, March 10, 2022
Thursday, April 14, 2022
Tuesday, May 24, 2022
Tuesday, May 24, 2022
Thursday, May 26, 2022
Tuesday, June 14, 2022
Finance Committee Meeting
Special City Council Meeting
City Council Study Session
Finance Committee Meeting
Finance Committee Meeting
Joint City Council / Finance
Committee Studv Session
City Council Study Session
Finance Committee Meeting
City Council Public Hearing
Long -Range Financial Forecast (LRFF) update
City Council Planning Session
Early Look at the Capital Improvement Program
Overview of FY 2022-23 Revenue Projections
Proposed FY 2022-23 Expenditure Budget Review
FY 2022-23 Operating Budget Review
FY 2022-23 Capital Improvement Budget Review
Finalize Recommendations to City Council
Adoption of FY 2022-23 Budget
City of Newport Beach — Finance Department
3 FY 2021-22
Third Quarter
Budget Update
City of Newport Beach — Finance Department
• Positive projected revenue variance $300
of $19 million °
• Revenues are now above the $250
historical trendline
$200
• $6 million of projected expenditure
$150
savings
• Additional year-end savings typical
$100
• $18 million budget surplus projected $50
to be available at year-end beyond
the required contingency reserve $_
Adopted
■ Property Tax ■ Sales Tax
Third Quarter
TOT Other
City of Newport Beach — Finance Department
All Funds
Budget Overview
City of Newport Beach — Finance Department
• 12.5% growth in operating budget, primarily due to:
• Tidelands Fund presentation format change
• Increase in proposed CaIPERS UAL payment to $40 million • Higher internal service fund charges based on recent project to review rates
• Adjustment to Police Department and Fire Department overtime budgets to align with Tidelands Fund format change
• Significant additional capital spending from FY 2020-21 budget surplus and ARPA funds
Operating Budget 291,709,382 304,005,215 307,759,024 309,114,306 347,850,330 12.5% CIP New Appropriations 46,807,906 45,686,890 31,377,224 35,506,078 70,580,292 98.8% Total Budget 338,517,288 349,692,105 339,136,248 344,620,384 418,430,622 21.4% City of Newport Beach — Finance Department
• The table below presents the historical budget trend with prior years' Tidelands Fund expenditures restated to the current presentation format
• Reduces operating budget growth from 12.5% to the real growth of 6.6 %
• Subsequent all funds tables and charts reflect this
restated presentation format for clarity
Operating Budget 307,558,578 319,962,314 324,888,178 326,415,030 347,850,330 6.6% CIP New Appropriations 46,807,906 45,686,890 31,377,224 35,506,078 70,580,292 98.8% Total Budget 354,366,484 365,649,204 356,265,402 361,921,108 418,430,622 15.6% City of Newport Beach — Finance Department
75 $370
$350
$330
$310
$290
$270
$250
+ 5.9%
+ 3.0%
$280.7
+ 2.7%
$306.2
+ 3.6%
$314.5
+ 6.6%
+ 0.1% $347.9
$325.9 $326.4
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
Actual
Actual
Actual
Actual
Actual
Adopted
Proposed
City of Newport Beach — Finance Department
Wastewce
1.4%
City of Newport Beach — Finance Department
10 • General Fund growth of 8.1 % to be discussed in more detail • Wastewater Fund growth of 23.4% (15.6% versus FY 2020-21) • Improved insurance ISF allocation methodology
• Updated administrative charge calculation
General Fund
208, 745, 822
219,111, 935
219, 859, 038
225, 963, 632
244,186, 089
8.1 %
Tidelands
19,148, 353
18, 502, 088
20, 084, 234
20, 436, 962
20, 978, 717
2.7%
Water
24,669,005
26,584,151
27,969,925
27,933,241
28,404,922
1.7%
Wastewater
3,824,713
3,966,734
4,284,105
3,956,840
4,884,150
23.4%
Other
51,170, 686
51, 797, 406
52, 690, 876
48,124, 354
49, 396, 451
2.6 %
Total Operating Budget
307,558,579
319,962,315
324,888,178
326,415,030
347,850,329
6.6%
City of Newport Beach — Finance Department
11 • Fluctuations in capital spending are routine
• Appropriation of prior year surplus funds and ARPA resources has facilitated significant additional capital investment, including:
• Central Library Lecture Hall
• Balboa Peninsula Fire Station and Library Replacement • Balboa Island Drainage Improvements — Phase 1
• Junior Lifeguards Building
CIP New Appropriations
CIP Estimated Rebudgets
46,807,906
30,757,550
45,686,890
47,562,633
31,377,224
55,774,942
35,506,078
39,441,387
70,580,292 98.8%
32,353,321 -18.0%
Total Budget
$ 77,565,456
$ 93,249,523
$ 87,152,166
$ 74,947,465
$ 102,933,613 37.3%
City of Newport Beach — Finance Department 12
General Fund
Revenue Projections
City of Newport Beach — Finance Department 13
M
Property Taxes $ 131.4 M
Sales Tax $ 46.5 M
Transient Occupancy Tax $ 27.8 M
Other Taxes $ 12.2 M
■ Charges for Services $ 27.9 M
Property Income $ 12.1 M
■ All Other Sources $ 7.2 M
4.6%
4.6% 2.7%
City of Newport Beach — Finance Department 14
$270
c
$260
$250
$240
$230
$220
$210
$200
$190
$265.0
$253.4
$259.6
$241.1 $251.3
$234.7
$228.5 � $235.9
$216.5 $228.5
$204.4 $219.1 `
T
$199.6
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Actual Actual Actual Actual Actual Projected Projected
Pre-Covid Projection Initial Post-Covid Projection Actual and Current Projection City of Newport Beach — Finance Department 15
• The City receives 17.2% of the 1 %
property tax
• Each City's percentage of the 1 %
varies, with Newport Beach having
the third highest share of the property
tax in Orange County behind Santa
Ana and Laguna Beach
• The City's assessed valuation is
projected to be $69 billion in FY 2022-23,
the second largest in Orange County
behind Irvine and ahead of Anaheim in
third place
• Having a higher percentage of the total
tax and higher assessed values than
many surrounding cities is a significant
contributor to the City's fiscal stability
1 City of Newport Beach
■ County of Orange
■ Schools
■ Special Districts
2013
1,093
$2,314,160
$1,800,000
22.03%
2014
962
$2,404,919
$1,894,500
525%
2015
1,023
$2,604,978
$1,975,000
425%
2016
1,064
$2,778,741
$2,150,000
8.86%
2011
1,114
$3,121,157
$2,400,000
11.63%
2018
952
$3,283,684
$2,517,000
4.88%
2019
949
$3,177,617
$2,435,000
-3.26%
2020
1,142
$3,461,580
$2,587,500
626%
2021
1,359
$4,073,683
$3,150,000
21.74%
2n22
160
$4,356,479
$3,5n7,000
13_n7%
City of Newport Beach — Finance Department 16
• Represents approximately 50% of General Fund revenues • Growth has been accelerating based on strong assessed value growth and sales activity • 6.4% growth projected for FY 2022-23 across all categories of property tax revenue U)
o $135
$125
$115
$105
$95
$85
+6.4%
+3.6% $131.4
+5.2%
$123.4
+4.s°i° $119.2
+6.7% $113.3
+7.7%
$108.4
$101.6
$94.4
2016-17 2017-18 2018-19 2019-20 2020-21
Actual Actual Actual Actual Actual
2021-22 2022-23
Projected Projected
City of Newport Beach — Finance Department 17
$140 M
$120 M
$100 M
$60 M
$40 M
$M
13.4% _,) i o/ 5.6%
5.0% 1.8% -0.4% -0.1 %
8.0%
6.7%
5.2%
4.6%
6.4%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY 23 City of Newport Beach — Finance Department
• The City receives 1.00% of the
7.75% sales tax
• Historically most of the City's sales
tax revenue comes from:
• Autos & Transportation
• Restaurants & Hotels
• General Consumer Goods
• Auto dealers and Fashion Island
retailers account for 17 of the City 's
top 25 sales tax producers
■ City of Newport Beach
■ State General Fund
■ County of Orange
Proposition 172
OCTA
City of Newport Beach — Finance Department 19
• 2.5% growth anticipated for FY 2022-23
• Current year growth projections have been revised as multiple quarters of significant growth have now been recorded
• Revenue from auto sales remains strong, with inventory decline impacts offset by price increases
• Restaurant & hotel and brick & mortar retail receipts have now exceeded pre -pandemic levels
+2.5%
$46
'- +16.5%
$45.4 $46.5
$42
+7.5%
$ 3 8 -5.9%
$39.0
+9.9%
+4.0% $38.5
$34 $36.2
$33.7 $35.0
$30
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Actual Actual Actual Actual Actual Projected Projected
City of Newport Beach — Finance Department 20
$50 M
$45 M
$40 M
$35 M
$30 M
$25 M
$20 M
$15 M
$10 M
$5 M
$M
1C
0 4.6%
14.9% 12.6%7.6 /o
■ -13.6% = 0 1
12.0%
L
�A%
16.5% 2.5%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY 23 City of Newport Beach — Finance Department
21 • The City charges a 10% tax
• Same rate as 41 % of California jurisdictions
• Lower than 32% of California jurisdictions
• Higher than 27% of California jurisdictions
• Revenue is generated from commercial (hotel) and residential (short-term rental) stays
• The City has access to a variety of data sources to monitor trends that impact leisure and business travel
® MARCH 02, 2022 WEEKLY REPORT
NL-'WPOR 1 NEWPORT BEACH & COMPANY
EWPO COVID-19 ECONOMIC RECOVERY DASHBOARD
BEACH
&com—Y EXECUTIVE SUMMARY
Recovery Research Dashboard - February 2022
Visit California and third party data sets
100.0%
79.8%
7B.7°I
75.5%
81.2%
S5.9%
81.8%
76.2%
78.7%
80 0%
69n2!9.6%
71.$%
��'
87�$%
Pr7.396
{LLI%
$2.$
81.7°JG
58.196
59. 60.0%
6$47.7°
52AM
53A%
w Iw
.5%
Q 40.0%
22 44.2%
43.9%
45-2%
r20.0%
30.09�
37.5%
38.296
34.396
d
27.6°�
25.0%
z
00 0.0%
13.5%
JAN
FES
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
t2021
-.o--2020 --e-M9
SOURCE: JAfVE)ARY 20, 2022, 9TR C OM MQMTHL Y 0ITA THRC!q fi DECEMBER 2021 City of Newport Beach — Finance Department 22
• 4.6% growth projected for FY 2022-23, including 3.0% for residential revenue and
5.0% for hotel revenue, after taking into account a $1.0 million reduction in the prior year's projection for timing concerns
• Hotel -related revenues are projected to exceed pre -pandemic levels and short- term rental -related revenues are growing well beyond the already -reached record high level of revenue
• Projections do not account for any impact from the VEA Newport Beach reopening and assume the Pendry Newport Beach will not open until FY 2023-24 $30 +s.7%
c
$26 +s.2%
+2.4% -15.6% +51.4% $27.8
$22000 $24.7 -19.0% $25.6
$22.3 $22.8
$18 $20.8
$14 $16.9
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Actual Actual Actual Actual Actual Projected Projected
City of Newport Beach — Finance Department 23
• Hotel -related TOT revenues through the third quarter of the current fiscal year are still trailing 2019 by 8.6%
• However, excluding VEA and the Pendry hotel -related TOT revenues are up 13.7% versus 2019
• Occupancy rates are still 25% below 2019 levels, but rates continue to climb - up 12% year- to-date
• Residential TOT is more than offsetting the lagging hotel TOT revenues, with an 86.4% rate of growth in the last three fiscal years that has generated an additional $3.2 million versus FY 2018-19 this fiscal year to date
Hotel Only TOT Revenue Through
Third Quarter of Fiscal Year
$20,000,000 + 13.7%
$16.7 M
$15,000,000 =.7 M $14.6 M ■
$10,000,000 $8.3 M
$5,000,000
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
■ No VEA or Pendry
Residential TOT Revenue Through
Third Quarter of Fiscal Year
$8,000,000 + 86.4% $6.9 M
$6,000,000
$
$4.5 M 5.0 M
$4,000,000 $3.7 M
$2,000,000
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
■ STR Agents ■ STR Owners
City of Newport Beach - Finance Department 24
$30 M
$25 M
$20 M
$15 M 13.2%
15.7%
12.4% 0.7%
$10 M
$5 M
$M
12.0% 3.5%
10.2%
12.0%
5.8% 2.4%
8.2%
-15.6%
-19.0%
51.4%
8.7%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 City of Newport Beach — Finance Department 25
General Fund
Budget Overview
City of Newport Beach — Finance Department 26
■ Salaries & Benefits $163AM
■ Maintenance & Operations $79.6M
■ Capital Outlay $1.2M
■ Transfers $29.6M
City of Newport Beach — Finance Department 27
(n $250
_° $240
75 $230
$220
$210
$200
$190
$180
+ 6.7%
$202.8
$190.1
$208.7
$219.1 $219.9
$226.0
$244.2
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Adopted Adopted Adopted Adopted Adopted Adopted Proposed City of Newport Beach — Finance Department
• Over the last year, staff has comprehensively evaluated opportunities to improve the accuracy of the City's budgeting
• Changes to Tidelands Fund subsidy recognition
• Comprehensive evaluation of internal service fund charges and allocation methodologies
• Comprehensive review of capital transfers (FFP, HBMP, and FMMP) • Comprehensive review of the City's cost allocation plan • Evaluation of the adequacy of the overtime and utilities budgets • Identification of accounts that need periodic inflationary adjustments • Reduction in the use of surplus vehicles
City of Newport Beach — Finance Department 29
The growth in the General Fund operating budget is primarily being driven by the proposed increased UAL payment, increased transfers to ISFs, removal of the vacancy factor, and budget accuracy -related adjustments
Program Enhancements
Be Well OC Contract Continuation (program enhancement)
Other Miscellaneous Adjustments (COLAs, Contract CPIs, etc.) Increase to $40 Million UAL Payment
Police and Fire Overtime Adjustment
Increased Internal Service Charges
I
$ 2,187,000
$ 1,000,000
$ 1,534,000
$ 4,813,000
$ 2,958,000
$ 2,904,000
1.0%
0.4%
0.7%
Z.
2.1 %
1.3%
1.3%
Removal of Vacancy Factor $ 2,000,000 0.9%
Utilities Budget Adjustments (electricity and water)
$ 826,000
City of Newport Beach — Finance Department
30 • In November 2019,
the Finance
Committee
endorsed staff's
recommendation to
anticipate a
future drop
in the discount rate
• $35 million base contribution to the unfunded liability to remain in place as part of the baseline budget
• Additional $5 million per year contribution to be added for five years with a $2 million per year contribution thereafter
• The Finance Committee and City Council revisit this strategy as part of each year's budget process
• Given the City's recent revenue growth, staff is now recommending maintaining a $40 million per year payment from the baseline budget until the unfunded liability is eliminated
• Staff also recommends maintaining an additional annual discretionary contribution at a minimum level of $5 million from year-end budget surplus per City Council Policy F-5
City of Newport Beach — Finance Department 31
• As can be seen in the chart, projections change from year to year, primarily as a result of market performance
• With five years of increased $45.0 million annual payments, the City's unfunded liability would be eliminated a year sooner in FY 2027-28, with a reduced $34.5 million payment due that year
105.0%
100.0
95.0%
90.0%
85.0%
80.0%
75.0%
70.0%
65.0%
60.0%
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 — 2019 Projection 2020 Projection — 2021 Projection — Budget Recommendation City of Newport Beach — Finance Department
32 c\`=107
• City Council — Internal service
charges
• City Clerk — Election costs
• City Attorney — Outside
counsel budget relocation
• City Manager — Homeless
services
• Police — Overtime adjustment
• Fire — Overtime adjustment
• Public Works — equipment
purchases and water
• Utilities — Insurance charges
and electricity
• Miscellaneous — property
insurance allocation
• Vacancy factor elimination
City Council
834,796
881,199
848,125
841,003
909,554
8.2%
City Clerk
1,131,339
1,065,439
1,206,539
1,080,305
1,256,209
16.3%
City Attorney
2,593,143
2,623,784
2,708,230
2,725,458
2,350,264
-13.8%
City Manager
3,022,380
3,344,155
3,543,321
4,571,940
5,992,008
31.1%
Human Resources
3,142,478
3,293,238
3,423,267
3,448,725
3,437,449
-0.3%
Finance
9,157,560
9,461,368
9,573,969
9,667,618
9,982,311
3.3%
Police
62,627,537
66,040,641
67,002,345
67,401,926
71,566,966
6.2%
Fire
50,514,086
53,193,484
54,790,911
55,861,885
60,153,871
7.7%
Community Development
12,834,324
12,952,728
12,525,476
12,772,405
13,775,980
7.9%
Library
9,021,784
9,265,651
9,559,849
9,655,108
9,387,194
- 2.8
Recreation and Senior Services
13,624,221
13,853,165
13,325,836
13,360,496
13,569,635
1.6%
Public Works
35,774,140
38,255,532
37,274,177
41,305,237
44,359,521
7.4%
Utilities
4,336,136
4,759,656
5,033,549
5,144,631
5,649,416
9.8%
Miscellaneous Non -Operating
131,896
121,896
1,043,444
126,896
1,795,710
1315.1%
Vacancy Factor
-
-
(2,000,000)
(2,000,000)
-
-100.0%
SubTotal
208,745,820
219,111,935
219,859,038
225,963,632
244,186,089
8.1%
Transfers Out
24,909,000
31,900,252
6,000,000
20,200,000
31,597,269
56.4%
Total 233,654,820 251,012,187 225,859,038 246,163,632 275,783,358 12.0% City of Newport Beach — Finance Department
33 General Fund CIP transfer reduced by $700,000 for one-time transfer in prior year of Oceanfront Encroachment Reserve funds and includes $530,000 in the current year for a program enhancement
• Increases to FFP, HBMP, and FMMP per recent Finance Committee discussion Addition of Tidelands subsidy transfer per recent Finance Committee discussion • $379,452 transfer to Fire Equipment Fund for a program enhancement General Fund CIP
5,525,000
5,220,000
5,000,000 5,700,000
5,530,000
-3.0%
Facilities Financing Plan (FFP)
8,500,000
10,020,333
- 8,500,000
8,600,000
1.2%
Harbor & Beaches Master Plan
4,000,000
5,500,000
- 4,500,000
4,600,000
2.2%
Facilities Maintenance Plan (FMP)
1,000,000
2,500,000
1,000,000 1,500,000
2,500,000
66.7%
Tidelands Operating Fund
-
-
- -
9,987,817
-
800MHz Radio Fund
534,000
500,000
- -
-
-
Other One -Time Transfers
5,350,000
8,159,919
- -
379,452
-
Total
24, 909, 000
31, 900, 252
6,000,000 20, 200, 000
31, 597, 269
56.4%
City of Newport Beach — Finance Department 34
General Fund
Reserves and
Surplus
City of Newport Beach — Finance Department
35 • The current year projected
surplus of $17.9 million will need
to be partially allocated to
maintain the contingency
reserve at 25%
• $14.4 million is projected to
remain
• Elimination of restricted
revenues
• The significant reduction in
transfers out is the result of the
expenditure of the prior year
surplus during FY 2021-22
• The FY 2022-23 budget as
currently proposed includes a
structural surplus of $7.8 million
BEGINNING UNRESTRICTED FUND BALANCE
SOURCES:
Operating Revenues
Less: Restricted Revenues
Prior Year Resources Carried Forward
Release of Restricted Funds
Transfers In from Other Funds
TOTAL SOURCES
USES:
Operating Expenditures
Transfers Out
Resources Carried Forward to FY 2021-22
Addition to 25% Contingency Reserve
TOTAL USES
31,178,957 14,421,264 (16,757,693)
253,370,149 265,030,502 11,660,353
IN 128.5131 - 1 1,128, 513
3,072,666 - (3,072,666)
1220000 - (1,220,000)
10,492,133 18,550,724 8,058,591
267,026,435 283,581,226 16,554,791
233,302,236 244,186,089 10,883,853
47,030,300 31,597,269 (15,433,031)
3451592 - (3,451,592)
283,784,128 275,783,358 (8,000,770)
ENDING UNRESTRICTED FUND BALANCE 14,421,264 22,219,132
7,797,868
City of Newport Beach — Finance Department 36
• The budget as proposed reflects a $7.8 million structural surplus in addition to the projected FY 2021-22 unallocated surplus of $14.4 million, for a total of $22.2 million • Proposed Budget Revisions on June 14 are anticipated to total $334,000 • The structural surplus can be utilized to address additional City Council priorities in a manner comparable to the direction under City Council Policy F-5 • The Finance Committee recommends allocating the remaining $7.5 million of structural surplus funds as follows:
• $5.0 million to prefund the typical year-end CalPERS UAL additional payment for FY 2021-22
• $1.0 million to establish an initial fund balance for the Recreation Facilities Financing Plan
• $1.5 million set aside for FY 2023-24 CIP
• The Finance Committee recommends allocating the full $14.4 million projected FY 2021-22 year-end surplus to FY 2023-24 CIP projects in October, and waiving the 50/50 requirement in City Council Policy F-5 at that time, as was done last fiscal year City of Newport Beach — Finance Department 37
Program
Enhancements and
Staffing Changes
City of Newport Beach — Finance Department
38 • Police Department body worn camera program, taser
replacement program, and enhanced internal service fund allocation
• Subscription -based program costs rather than a lump sum • Net General Fund impact of a $288,000 increase to the annual ISF transfer
• $105,000 for one additional Community Services Officer position
• $1,000,000 additional General Fund commitment to homeless services
• Ongoing funding for the Be Well OC program
City of Newport Beach — Finance Department
• Capital purchases
• $530,000 to fully fund the Fire Department station alerting system project • $379,000 to fund installation of the vehicle ventilation system in the remaining fire stations
• $251,000 for the purchase of a sidewalk sweeper and a Bobcat track loader to enhance the Public Works Department's sand management capabilities and improve response times
• Other material miscellaneous enhancements include
• $298,000 of one-time funds for Community Development Department professional services in support of contract plan check, planning studies, and other temporary workload demands
• $189,000 to reduce the use of surplus vehicles for full-time staff • $100,000 for a wastewater rate study
• $50,000 to increase the budget for the purchase of library materials • $24,800 for enhanced lifesaving equipment for the Harbor Department's patrol boats City of Newport Beach - Finance Department 40
• In an effort to address recruitment and retention challenges associated with certain part-time positions that are eligible for CaIPERS membership, staff propose a small number of conversions to full-time positions • Since all but one of these positions are already participating in CaIPERS, the material fiscal impact is limited to providing the full cafeteria plan contribution afforded to full-time staff
Community Development
Limited Term Planning Technician
None
$
29,700
Community Development
Department Assistant
None
$
22,200
Community Development
Building Inspector (Combination)
(0.50)
($
24,500)
City Manager
Management Analyst
0.20 $
42,100
Finance
Buyer
None
$
16,900
Finance / Recreation
Senior Fiscal Clerk (Combination)
None
$
28,300
Recreation
Office Assistant
0.10 $
33,700
These positions are not currently in CaIPERS.
City of Newport Beach — Finance Department
41 • Other staffing requests have been limited in the proposed budget to the most critical needs
• Contract Conversions
• As was the case last year, staff continue to monitor whether in-house staff are more cost effective than contract staff
• One Public Works Inspector position is proposed at a cost of $129,000 that is fully offset by reduced contract expenditures of $170,000 • After a successful first phase of implementation in the current fiscal year, adding 2.02 part-time FTEs in Public Works to further increase the pool of Maintenance Aide hours that are being utilized in lieu of contract staff to improve the City's standards relative to portering and maintenance services • Recreation and Senior Services requests the addition of a part-time 0.45 FTE Facilities Maintenance Worker position to bring certain specialized maintenance work in-house
City of Newport Beach — Finance Department 42
• New positions
• Staff continues to make every effort to be efficient with existing resources and avoid adding new full-time staff unless absolutely necessary
• Staff is proposing the addition of one Community Services Officer in the Police Department to manage the body worn camera program
• Staff is proposing the addition of one Associate Civil Engineer in the Public Works Department to help facilitate the timely delivery of the City's increasing level of capital improvement projects
• Staff is proposing an increase of part-time Associate Civil Engineer hours in Public Works of 0.60 FTE to address the same workload demands
• One additional FTE was added mid -year in FY 2021-22 for the Management Fellowship program
• Reclassifications
• Various reclassifications and salary adjustments have been included in the budget to address departmental reorganizations and salary studies • The fiscal impact associated with these changes is minimal City of Newport Beach — Finance Department 43
• Overall,
11 additional
full-time positions
are proposed in the
budget,
of which only
two positions are
new additions
• Seven conversions of part-time positions
• One contract conversion
• One prior year addition
Prior Fiscal Year Mid -Year Additions + 1.00 --- + 1.00 New Positions + 2.00 + 0.60 + 2.60
Staff Realignment + 7.00 - 7.20 - 0.20
Contract Conversions EN + 1.00 + 2.47 + 3.47
City of Newport Beach — Finance Department 44
c\`=107
F/T
PIT
FIT
P/T
F/T
P/T
F/T
P/T
F/T
P/T
F/T
P/T
General Fund
City Clerk
5.00 1.00
5.00 1.00
5.00 1.00
5.00 1.00
5.00 1.00
City Attorney
7.00 1.00
7.00 1.60
7.00 1.60
7.00 1.60
7.00 1.60
-
City Manager
6.00 1.50
6.00 1.30
6.00 1.30
6.00 1.30
8.50 0.50
2.50 (0.80)
Human Resources
11.00 0.50
11.00 1.25
11.00 1.25
11.00 1.25
11.00 1.25
-
Finance
32.00 4.26
32.00 4.55
33.00 4.55
33.00 4.55
35.00 3.05
2.00 (1.50)
Police
231.00
14.87 232.00
14.87 232.00
14.87 232.00
14.87 233.00
14.87 1.00
Fire
143.90
42.17 143.90
43.12 143.80
43.12 143.80
42.56 143.80
42.56 -
Community Development
50.10 8.37
50.10 10.22
49.20 10.20
50.20 10.20
53.20 6.70
3.00 (3.50)
Library
36.00 22.83
36.00 22.83
36.00 22.83
36.00 22.83
35.00 22.83
(1.00)
-
Recreation and Senior Services
42.00 37.96
42.00 38.00
42.00 38.00
42.00 39.43
43.50 38.48
1.50 (0.95)
Public Works
90.50 5.08
85.50 5.68
85.50 5.67
85.50 10.63
87.50 12.25
2.00 1.62
Utilities
1.00 -
9.50 -
9.50 -
9.50 -
9.50 -
-
-
Total
655.50
139.54
660.00
144.42
660.00
144.39
661.00
150.22
672.00
145.09
11.00 (5.13)
Harbor (Tidelands)
3.00 9.39
3.00 9.39
-
Information Technology
15.50 0.50
15.50 0.50
Utilities (Water Fund)
33.25 2.73
33.25 2.73
-
70.50 11.46
68.00 13.79
68.00 15.73
Utilities (Wastewater Fund)
10.75 1.23
10.75 1.23
-
-
Public Works (Equipment Fund)
6.50 0.80
6.50 0.80
-
-
Public Works (Environmental Liability)
-
-
-
1.00 -
1.00 Grand Total
726.00
151.00
728.00
158.21
728.00
160.12
730.00
164.87
741.00
160.74
11.00 (4.13)
Total Full -Time Equivalents
877.00
886.21
888.12
894.87
901.74
6.87 City of Newport Beach - Finance Department 45
• Program enhancements
General Fund City Manager
Additional Homeless Services Funding
1,000,000
of $4.2 million address:
Police
Body Worn Camera, Taser, and ISF Funding
393,000
Fire
Vehicle Ventilation and Station Alerting Systems
909,000
• Key City Council
Community Development
One -Time Professional Services Funding
298,000
priorities
Library
Additional Funding for Materials Purchases
50,000
Public Works
Equipment for Sand Management
251,000
• Maintaining adequate
Various
New Vehicles to Reduce Surplus Vehicle Utilization
189,000
Various
Miscellaneous Personnel Budget Changes
647,000
service levels
Miscellaneous Non -Personnel Budget Changes
359,000
• Enhanced budgeting
Total General Fund
4,096,000
accuracy
Tidelands Harbor
Lifesaving Equipment for Patrol Boats
25,000
Wastewater Utilities
Rate Study
100,000
• Previously identified
Various Various
Miscellaneous Personnel Budget Changes
21,000
personnel
Total Other Funds
146,000
adjustments
These enhancements are budgeted as transfers out of the General Fund and are not included in the earlier table showing the components of the 8.1 % operating budget variance.
City of Newport Beach — Finance Department 46
✓Strong budget surplus for FY 2021-22
✓Record General Fund revenues for FY 2022-23
✓Proposed General Fund budget is balanced
✓Increased budget accuracy
✓Updated and comprehensive savings plans for long-term needs ✓Increased pension UAL payment of $45.0 million resulting in paydown of the liability one year earlier than previously planned ✓Structural
General
Fund
budget surplus of $7.8 million subject to the
Council's
direction
as to
possible
additional
resource allocations
City of Newport Beach — Finance Department 47
City of Newport Beach — Finance Department 48