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<,FORN'P City Council Staff Report
November 15, 2022
Agenda Item No. 18
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Michael Gomez, Acting Finance Director/Treasurer - 949-644-3124, [email protected]
PREPARED BY: Shelby Burguan, Budget Manager, [email protected] PHONE: 949-644-3085
TITLE: Fiscal Year 2021-22 Year -End Budget Results
ABSTRACT:
The Finance Department prepares quarterly financial reports to review in detail the status of revenues and expenditures for the City's General Fund and to identify any concerning budgetary trends in other City funds. This report contains information on revenues, expenditures, and estimated fund balance for the fourth quarter of Fiscal Year 2021-22.
Because the City's financial records are undergoing the customary audit review, the financial information presented in this report is preliminary in nature and subject to adjustments as the year-end close process continues through December. Any such adjustments are not anticipated to have a material impact on the financial information presented in this report.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve the one-time waiver of policy elements C and D of City Council Policy F-5 - General Fund Surplus Utilization;
c) Allocate the General Fund surplus by transferring $24,100,000 to the Police Facility Fund as detailed in Budget Amendment No. 23-026;
d) Approve Budget Amendment No. 22-059 to appropriate revenue and expenses related to Cal OES reimbursed overtime and the ARPA Water Arrearage Program; and
e) Receive and file the report of budget amendments for the fourth quarter. 18-1
Fiscal Year 2021-22 Year -End Budget Results
November 15, 2022
DISCUSSION:
This fourth financial report of Fiscal Year 2021-22 provides an analysis of the financial activity of the City from the months of July 2021 through June 2022. Based on information available at the end of the fourth quarter, staff has made positive adjustments to year-end projected revenues and preliminary expenditure savings have been identified that should result in a healthy year-end budget surplus. Year-to-date expenditure budget adjustments are fully offset by the additional projected revenues.
Economic Overview
Key economic indicators such as unemployment, taxable sales, and assessed property values continue to improve, which is indicative of the recent robust improvement to the economy. While recent trends in inflation have caused concern in the broader economy and financial markets, the City is well -positioned to weather any short-term increase in inflation thanks to the related increase in many of the City's revenues such as sales tax and transient occupancy tax as prices increase. Additionally, long-term labor contracts with the City's employee associations have been negotiated that provide reasonable compensation increases that can be accommodated within projected revenue growth.
General Fund Revenues
Overall General Fund revenue growth has outpaced projections generated by the City's consultants and staff that were incorporated into the adopted Fiscal Year 2021-22 budget.
Growth in sales tax and transient occupancy tax has been the most pronounced, but growth in many other areas has contributed to a significant projected increase in General Fund revenues of $27.4 million versus the adopted budget.
The following table summarizes the changes to projected General Fund revenues versus the adopted budget for Fiscal Year 2021-22.
Fiscal Year 2021-22 Actual General Fund Revenues*
Property Taxes
119,157,540
122,229,980
124,335,984
2,106,004
2%
Sales Tax
38,956,275
40,275,670
46,164,860
5,889,190
15%
Transient Occupancy Tax
16,886,197
19,027,493
26,677,331
7,649,838
40%
Other Taxes
12,849,340
10,815,117
13,263,112
2,447,995
23%
Service Fees & Charges
18,264,952
19,046,329
22,870,701
3,824,372
20%
Parking Revenue
7,074,853
5,681,942
7,213,646
1,531,704
27%
Licenses and Permits
5,133,399
5,106,646
6,067,908
961,262
19%
Property Income
5,115,255
5,044,403
6,818,121
1,773,718
35%
Fines & Penalties
4,012,568
3,292,102
4,157,305
865,203
26%
Intergovernmental
5,175,738
1,760,934
4,578,283
2,817,349
160%
Investment Earnings
1,598,624
1,112,200
(2,615,502)
(3,727,702)
-335%
Misc Revenues
1,359,034
734,148
2,027,802
1,293,653
176%
Total Revenues
235,583,776
234,126,964
261,559,549
27,432,585
12%
" Based on preliminary year-end close data available as of September 30, 2022 18-2
Fiscal Year 2021-22 Year -End Budget Results
November 15, 2022
Property Tax - Property taxes are the City's single largest General Fund revenue and represent approximately 50% of all General Fund revenues. As these revenues are primarily dependent on the assessed valuation established in January of 2021, there is typically very little variance seen from the original budget as the year progresses. The growth rate for Fiscal Year 2021-22 was smaller than what has been seen in recent years, primarily due to the lower 1.036% CPI factor. For Fiscal Year 2021-22, property taxes came in at $124.3 million, or $2.1 million over the adopted budget, which is an indication of timely property tax payments and higher valuations.
Sales Tax - The second largest funding source for the General Fund is sales tax revenue, making up more than 15% of General Fund revenues. The City's sales tax base is largely generated from three industry categories — autos and transportation, general consumer goods, and restaurants/hotels. Most of these industries are also heavily impacted by tourism.
Based on the strong growth seen in the third quarter of Fiscal Year 2021-22 and the projections from the City's sales tax consultants, staff had increased the sales tax revenue estimate for Fiscal Year 2021-22 to $45.4 million in the third quarter budget update. Actual sales tax receipts came in at $46.2 million, or $765,000 over staff's most recent estimate.
This increase results from two primary drivers. First, while auto sales have slowed due to inventory shortages, price increases have more than offset this decline and have resulted in strong growth in this category of sales tax revenues of 11 % over Fiscal Year 2020-21. Second, revenues from brick -and -mortar retail establishments and restaurants & hotels have now surpassed the pre -pandemic high as consumer behavior has largely returned to normal. These revenues grew at rates of 30% and 37%, respectively, versus Fiscal Year 2020-21. Also factoring into the strong growth is revenue from fuel and service stations, with 46% growth versus the prior year due to higher fuel prices and higher demand. Overall revenue was up 18% over the prior year, leading to a year-end projection of 14.3% growth for the full fiscal year versus the prior fiscal year.
Transient Occupancy Tax — The City has seen a steady rebound and comeback for TOT revenues as the effects of the pandemic receded. Initially, the TOT budget for the current fiscal year was developed in anticipation of full recovery of TOT revenues not occurring until the end of Fiscal Year 2022-23. However, staff's revised projection in the second and third quarter budget updates estimated an increase in the budgeted revenues of $6.5 million to $25.6 million, an increase of 34.4%. Actual TOT revenues came in at $26.7 million, or $7.7 million over the Fiscal Year 2021-22 adopted budget.
Two factors caused this significant increase in TOT revenues. First, revenue from short- term lodging businesses, which grew throughout the pandemic, is at a record high level.
Second, many hotel properties are reporting record high TOT receipts and have been doing so for multiple consecutive months. While occupancy levels have not returned to pre -pandemic levels, they are slowly increasing. This lag in occupancy levels has been largely offset by higher daily room rates, resulting in hotel TOT revenues that are projected to approach the pre -pandemic high in Fiscal Year 2022-23. 18-3
Fiscal Year 2021-22 Year -End Budget Results
November 15, 2022
When taken together, the strong growth in residential TOT makes up for the slightly lower hotel TOT revenue and the two in total have resulted in a record year for TOT revenues for the City.
Data provided by Visit Newport Beach illustrates these very positive trends:
$191.99
$253.62
$206.54 $208.16 $205.8/
$151.26
$141.42 /
$284.44
54 $181.29
$166-41 $174.69
$114.63 $122.57
$135.07 $130.46 $134.15
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2020 -2021 2022
All Other Revenue — This category includes all other revenue sources other than the top three (property tax, sales tax, and TOT). All Other Revenue is made up of the following:
• Other Taxes — real property transfer taxes, business license taxes, marine charter taxes, and franchise fees.
• Service Fees and Charges — plan check fees, recreation classes, emergency medical services fees, and numerous other cost -of -service fees. • Parking Revenue — all General Fund related metered parking fees that are assessed throughout the various parking zones of the City. • Licenses and Permits — fees charged to process building related permits, street closure permits, dog licenses, and police tow franchise fees. • Property Income — City owned and managed income producing properties, long- term ground leases to concessions, restaurants, hotels and other businesses and organizations, and rental of City facilities to the public. • Fines and Penalties — parking citation fines collected by the City, administrative citation fines, fines remitted to the City from the County for vehicle code violations, and false alarm penalties.
• Intergovernmental Revenues — federal, state, and local grant revenues, which includes, but is not limited to, the City's portion of the 1/2 cent sales tax revenue paid to the County for public safety, state mandate reimbursements, reimbursement for strike teams sent to assist with fires, and revenue sharing with the County of Orange under the Waste Disposal Agreement (WDA). 18-4
Fiscal Year 2021-22 Year -End Budget Results
November 15, 2022
• Investment Earnings — revenue generated from the investment of City funds. • Miscellaneous Revenues — restricted revenue, damage to City property, bad debt, donations and contributions, non -operating revenues such as proceeds from the sale of materials and equipment, and other miscellaneous revenues.
Growth in other revenues as a whole is $11.8 million above the adopted budget or 22%.
Primary drivers of this growth include:
• Service fees and charges revenues exceeded the adopted budget by $3.8 million primarily due to increased revenue received from recreation fee -based classes and the Junior Lifeguard program, as well as plan check fees and paramedic service fees.
• Property income revenues exceeded the adopted budget by $1.7 million, primarily due to increased percentage -based rent revenues from the Lido House Hotel lease due to the hotel's increased revenues.
• Intergovernmental revenues are projected to exceed the adopted budget by $2.8 million, primarily due to adjustments related to Fire Department mutual aid reimbursements and SB-2 Permanent Local Housing Allocation grant funds. The City received $553,300 from the State of California for staff assigned to strike team deployments. Staff seek to align the FY 2021-22 budget with actual revenues received through the end of the fiscal year, which includes increasing revenue estimates & expenditure appropriations by $553,300 and is reflected as an increase in intergovernmental revenues.
• Property transfer tax revenues, which are included in the Other Taxes category in the chart above, exceeded the adopted budget by $1.7 million due to the strong sales activity discussed earlier in this report.
Governmental accounting standards require the City to adjust the value of the City's investments to market value. Because the City normally holds investments to maturity and receives the full value of securities regardless of market value fluctuations, these are paper -only gains and losses that net to $0 over time. The impact of the gains and losses associated with the change in the value of the City's investments is recorded at year-end as an addition to or subtraction from investment income. Because of the current volatile and rising interest rate environment, staff anticipated a significant negative adjustment on June 30, 2022, to reflect the fair value of the City's investments, as was reported in the third quarter report. On June 30, 2022, the recorded entry was a negative adjustment of $3.85 million to General Fund investment income to record the fair value adjustment. This material adjustment has reduced the projected surplus as reported later in this report. As the securities in the City's investment portfolio turnover in the next several years, the negative adjustment in the current year will be offset by positive adjustments that will cause future investment income to be reported as higher than the actual revenue received.
18-5
Fiscal Year 2021-22 Year -End Budget Results
November 15, 2022
General Fund Expenditures
The Fiscal Year 2021-22 General Fund revised expenditure budget totals $238.9 million.
Spending trends in Fiscal Year 2021-22 are generally consistent with prior years and do not indicate any cause for concern. Total expenditure savings of $10.9 million were realized, or 4.5% of the revised budget.
The table below summarizes the changes to the adopted expenditure budget for Fiscal Year 2021-22, as well as expenditure savings by budget category. Details follow highlighting the reasons for the material variances.
FY 2021-22 Actual General Fund
nditures *
Salary & Benefits
$ 151,713,101
$ 159,704,562
155,030,806
$ 4,673,756
2.9%
Contract Services
24,702,901
27,262,619
23,849,856
3,412,762
12.5%
Grant Operating
600,000
926,490
851,954
74,536
8.0%
Utilities
3,011,315
3,219,168
3,909,494
(690,326)
-21.4%
Supplies & Materials
3,739,730
4,433,188
3,993,623
439,565
9.9%
Maintenance & Repair
12,640,923
13,160,524
11,103,973
2,056,551
15.6%
Travel & Training
814,868
832,259
664,486
167,773
20.2%
General Expenses
2,130,552
2,303,774
2,228,060
75,714
3.3%
Internal Svc Charge
25,078,890
25,093,732
25,093,732
-
0.0%
Risk Management
750,915
750,915
472,940
277,975
37.0%
Capital Expenditures
780,438
1,185,810
824,085
361,725
30.5%
Total Expenditures
$ 225,963,632
$ 238,873,040
$ 228,023,008
$ 10,850,031
4.5%
* Based on preliminary year-end close data available as of September 30, 2022 Significant expenditure budget variances are as follows:
• The revised salary and benefits budget totals $159.7 million, an increase of $7.9 million over the adopted budget. The increase is primarily due to the appropriation of $5.0 million from Fiscal Year 2020-21 year-end budget surplus as an additional discretionary payment to CalPERS to further reduce the City's unfunded pension liability. The remaining $2.9 million relates to recently approved contracts with the City's employee associations. The City does not budget for unknown labor costs, which requires mid -year appropriations for negotiated salary and benefit increases in the year in which new labor contracts are negotiated.
While the budget for FY 2021-22 did include a $2.0 million vacancy factor, an additional $4.7 million in salary and benefit savings beyond the vacancy factor have been realized. Reflected in the salary and benefit projected actuals is $553,300 in overtime expenses related to staff assigned to strike team deployments. To align the FY 2021-22 budget with actual revenues and expenses through the end of the fiscal year, budget amendment No. 22-059 includes increasing revenue estimates & expenditure appropriations by $553,300. 18-6
Fiscal Year 2021-22 Year -End Budget Results
November 15, 2022
• Increases to the contract services budget relate to a variety of routine mid -year adjustments previously approved by the City Council, including $0.6 million added to the contract instructors' budget for Recreation and Senior Services that is fully offset by higher revenues, $0.4 million for the Be Well OC program, $0.3 million for the Medical IGT Program that is fully offset by higher revenues, and appropriations offsetting several donations. Contract services savings of $3.4 million were realized, however, $2.3 million in encumbrances for contracts was carried over into Fiscal Year 2022-23. Staff has reserved a portion of the surplus to account for these rolled encumbrances as is done every year, which reduces the year-end surplus available to allocate.
• Staff identified and previously reported on an issue with the City's budgeting for utilities. A portion of this issue was addressed with a budget amendment approved by the City Council in the first quarter. Additional overages became apparent and were reported in the third quarter report. Staff has made adjustments in the Fiscal Year 2022-23 budget to address these overages. As budget savings in other expenditure categories fully offset the $0.7 million overage, staff is not recommending a further adjustment to the utilities budget at this time. • Savings of $1.6 million from the residential refuse collection contract account for the majority of savings within the maintenance and repair category. Additional budget for this contract was built into the adopted budget; however, the contract was not executed until January 2022, resulting in unexpected budget savings that will not be ongoing in future years.
On October 26, 2021, the City Council approved $31.0 million of recommended appropriations from prior year unrestricted General Fund resources as follows:
1. CaIPERS Unfunded Liability — $5.0 million to bring the City's annual unfunded liability contribution to CalPERS up from $35 million to $40 million, consistent with recent years and the recommendation of the Finance Committee.
2. Facilities and Infrastructure Replacement Liabilities — $10.5 million toward additional contributions to long-term infrastructure liabilities within the Facilities Financial Plan and Harbor and Beaches CIP.
3. CIP and Neighborhood Enhancements — $15.5 million toward the Fiscal Year 2022-23 capital improvement program, to include neighborhood enhancement projects.
Other than the previously discussed appropriation toward the City's CalPERS unfunded liability, the remainder of these appropriations are reflected in the budget as transfers out of the General Fund.
General Fund Sources, Uses, and Projected Surplus
As a result of the strong revenue growth discussed earlier in this report, as well as the expenditure savings realized, the General Fund has a budget surplus of $24.1 million for Fiscal Year 2021-22.
18-7
Fiscal Year 2021-22 Year -End Budget Results
November 15, 2022
The table below illustrates the prior year sources and uses of funds as compared to the adopted budget and the projected year-end results:
Fiscal Year 2021-22 Projected General Sources, Uses, and Budget Surplus BEGINNING UNRESTRICTED FUND BALANCE $ 26,086,333 $ 31,036,884 $ 31,178,957 $ 142,073 0.5% SOURCES:
Operating Revenues
234,708,627
234,126,964
261,557,218
27,430,254
11.7%
Less: Restricted Revenues
(890,466)
(1,128,513)
(746,728)
381,785
-33.8%
Prior Year Resources Carried Forward
2,075,632
-
3,072,666
3,072,666
---
Release of Restricted Funds
1,557,463
1,220,000
6,476,034
5,256,034
430.8%
Transfers In from Other Funds
21,526,628
11,977,157
11,356,595
(620,562)
-5.2%
TOTAL SOURCES
258,977,884
246,195,608
281,715,785
35,520,177
14.4%
USES:
Operating Expenditures
220,647,754
225,963,632
228,023,008
2,059,376
0.9%
Transfers Out
27,467,575
20,200,000
52,813,549
32,613,549
161.5%
Resources Carried Forward to Next Fiscal Year
3,072,666
-
4,429,573
4,429,573
---
Addition to 25% Contingency Reserve
2,697,265
-
3,535,171
3,535,171
---
TOTAL USES
253,885,260
246,163,632
288,801,302
42,637,670
17.3%
ENDING UNRESTRICTED FUND BALANCE
$ 31,178,957
$ 31,068,860
$ 24,093,441
$ (6,975,419)
-22.5%
As can be seen in the table above, even with the sizable appropriations earlier this year that allocated three prior years' budget surpluses, current projections now reflect a $24.1 million budget surplus for the current fiscal year.
One item of note is that the transfers in from other funds has decreased by $621,000.
This is due to an updated projection of the activity in the Tidelands Operating Fund, which will require a higher subsidy from the General Fund than was anticipated when the budget was developed. A higher subsidy is necessary due to activity in the Tidelands fund such as capital expenditures brought forward mid -year.
Lastly, as discussed in the revenues section of this report, the impact from adjusting the value of the City's investments to fair value has negatively impact revenues by $3.85 million.
Recommended Allocation for Unrestricted General Fund Resources Typically, year-end surplus funds are allocated based on the guidelines found in City Council Policy F-5, which recommends that roughly 50% of surplus funds be allocated to long-term obligations such as pensions, debt, and other long-term needs and 50% be allocated to infrastructure or neighborhood capital improvements. As discussed, $24.1 million of unrestricted General Fund resources are available for use at the Council's discretion at this time. Recognizing that City Council Policy F-5 was developed with smaller surpluses in mind and the Council already funded the Fiscal Year 2022-23 CalPERS unfunded liability contribution from the Fiscal Year 2022-23 structural surplus, staff is recommending that the Council waive policy elements C and D of City Council Policy F-5 as was done last year.
18-8
Fiscal Year 2021-22 Year -End Budget Results
November 15, 2022
Staff's recommendation is to use the surplus funds of $24.1 million to fund the majority of the proposed purchase of a parcel on Dove Street for a future relocation of the City's Police Facility, as discussed in detail in a separate staff report. Staff propose funding the remaining amount of $6.7 million from available funds on hand in the Facilities Financial Planning (FFP) Fund. Budget Amendment 23-026 transfers the surplus funds from the General Fund to the Police Facility Fund for this purchase.
Other Funds
Staff have evaluated the fiscal condition of the City's other major operating funds (Tidelands, Water, and Wastewater). An analysis of the budget performance for the Water and Wastewater funds indicates that no budget adjustments are necessary and variances between budgeted and actual amounts are within reason.
An analysis of the Tidelands fund has demonstrated that a higher than budgeted subsidy will be necessary to fund the current activity in the fund. There is no budgetary impact due to the current presentation format of the Tidelands Fund, but this is reflected in the General Fund sources and uses as a reduced transfer in as previously discussed.
Available Beginning Fund Balance 2,390,852
Projected Revenues 13,578,608
Total Sources 15,969,460
Operational Expenses (1,130,636)
Capital Improvement Projects (3,862,955)
Cost Allocation Plan (17,490,906)
Total Uses (22,484,497)
Deficit (Subsidy) (8,668,939)
Projected Net Increase to GF (CAP less Subsidy) 8,821,967 Budgeted Net Increase to GF (CAP less Subsidy) 9,442,529 Impact on General Fund (620,562)
Measure M Fund
In Fiscal Year 2020-21, the City of Newport Beach received funding from the Orange County Transportation Authority (OCTA) for the Newport Bay Trash Mitigation project expensed in Fiscal Year 2019-20. The project cost was $125,226, however only $120,216.38 was received from OCTA. Staff is proposing transferring $5,009.62 from the General Fund in order to balance the revenues and expenses for this prior year project.
American Rescue Plan Act Fund
The City of Newport Beach received funding from the American Rescue Plan Act (ARPA), through the California State Water Resources Control Board to reimburse the City for delinquent water bills that were unpaid during the COVID-19 pandemic bill relief period. 18-9
Fiscal Year 2021-22 Year -End Budget Results
November 15, 2022
The City received approximately $123,000 for this water arrearage program, and a budget amendment is needed to appropriate the revenues and expenses within the ARPA fund.
There is also a wastewater arrearage program that will be brought forward in the Fiscal Year 2022-23 First Quarter Report.
Quarterly Report of Budget Amendments
Attached to this report as Attachment D is the quarterly listing of Budget Amendments that was previously provided to the Finance Committee. This listing is also provided to the City Council as part of each quarterly budget update to enhance transparency.
FISCAL IMPACT:
As a result of the strong operating results during Fiscal Year 2021-22, $24.1 million of surplus funds are on hand and available for the Council's appropriation. The attached Budget Amendment 23-026 fully appropriates these funds for the purpose discussed in this report. The full General Fund contingency reserve of $58.9 million remains available following this action.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — City Council Policy F-5 - General Fund Surplus Utilization Attachment B — Budget Amendment No. 23-026
Attachment C — Budget Amendment No. 22-059
Attachment D — Budget Amendments for the Fourth Quarter 18-10
Attachment A
City Council Policy F-5 — General Fund Surplus Utilization 18-11
GENERAL FUND SURPLUS UTILIZATION
PURPOSE
To establish a City Council policy for the use of surplus funds resulting from unrestricted General Fund annual revenues exceeding total actual expenditures, encumbrances, and commitments for a given fiscal year.
BACKGROUND
Due to a variety of factors, such as economic expansion, frugal operations, or changes to various projects and programs, the City of Newport Beach may end a fiscal year with a surplus of revenues over expenditures, encumbrances and commitments. Budget Surplus Funds are those surplus funds that result after closing the City's accounting records for a fiscal year.
From time to time, the City Manager may recommend allocations to the City Council on the use of Budget Surplus Funds consistent with the uses identified in this policy.
POLICY
A. One-time funds, such as grant proceeds, should be used for one-time expenditures; therefore, the City Council should not use one-time and Budget Surplus Funds in a way that creates new on -going expenditure requirements unless the City Council can demonstrate that adequate resources exist to support the on -going expenditure requirements.
B. After addressing approved budget amendments, reserve deficiencies and other matters of fiscal concern, the City Manager or his/her designee may recommend that Budget Surplus Funds be used to fund City needs in the manner described in this policy, as approved by the City Council, at a public meeting.
C. Roughly fifty percent (50%) of the Budget Surplus Funds shall be used to address long- term obligations such as pension liabilities, other post -employment benefits, bonded debt, lease obligations and other long-term needs. Unlike ongoing needs such as salaries, long- term needs do not require ongoing funding over an indeterminable period of time.
D. Roughly fifty percent (50%) of the Budget Surplus Funds shall be used to address infrastructure or neighborhood capital improvements, guided by a philosophy that these expenditures should seek to improve the community's safety, aesthetics, transportation, and/or quality of life.
Adopted - June 14, 2016
18-12
Attachment B
Budget Amendment No. 23-026
18-13
Department: Finance
Requestor: Michael Gomez
City of Newport Beach
BUDGET AMENDMENT
2022-23 BA#: 23-026
ONETIME: ❑� Yes ❑ No
Approvals
❑ CITY MANAGER'S APPROVAL ONLY
Finance Director: Date \V 3
El COUNCIL APPROVAL REQUIRED City Clerk: Date
EXPLANATION FOR REQUEST:
To appropriate the FY 2021-22 year-end surplus. ❑� from existing budget appropriations ❑ from additional estimated revenues
❑✓ from unappropriated fund balance
REVENUES
Fund #
Org
Object Project Description
Increase or (Decrease) $
521
52199
691010 INTERFUND TRANSFERS - TRANSFER IN
GENERAL FUND 24,093,441.00
EXPENDITURES
Subtotal $ 24,093,441.00
Fund #
Org
Object Project Description
Increase or (Decrease) $
010
01099
991521 GENERAL FUND INTERFUND TRANSFR -
TRANSFER OUT POLK 24,093,441.00
Subtotal 24,093, 441.00
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
010
300000
GENERAL FUND - FUND BALANCE CONTROL
(24,093,441.00)
521
300000
POLICE FACILITY NEW - FUND BALANCE CONTROL
24,093,441.00
Subtotal I $
No Change In Fund Balance
18-14
Attachment C
Budget Amendment No. 22-059
18-15
Q aEW PORT
City of Newport Beach
BUDGET AMENDMENT
2021-22 BA#: 22-059
Department: Finance
ONETIME: 2 Yes ❑ No
Requestor: Michael Gomez
Approvals
❑ CITY MANAGER'S APPROVAL ONLY
Finance Director: � —?'~t Date 3\`Z
COUNCIL APPROVAL REQUIRED City Clerk: Date
EXPLANATION FOR REQUEST:
To appropriate revenue and expenses from Cal OES for strike teams and mutual aid overtime, and record revenues and ❑ from existing budget appropriations expenses related to the ARPA Water Arrearage Program. 0 from additional estimated revenues ❑ from unappropriated fund balance
REVENUES
Fund #
Org
Object
Project
Description
Increase or (Decrease) $
010
01040401
431245
FIRE OPERATIONS - CAL OES
553,281.94
166
16620
431S41
G2250
ARPA - AMERICAN RESCUE PLAN ACT WATER
122,S42.58
Subtotal $ 675,824.52
EXPENDITURES
Fund #
Org
Object
Project
Description
Increase or (Decrease) $
010
01040401
713010
FIRE OPERATIONS - OT STRIKE TEAMS & MUTUAL
AID 553,281.94
166
16620
821004
G2250
ARPA - GRANT EXPENSES
116,629.36
166
16620
871034
G2250
ARPA - ADMINISTRATIVE
5,913.22
Subtotal $ 675 824.52
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
010
300000
GENERAL FUND
- FUND BALANCE CONTROL
166
300000
ARPA - FUND BALANCE CONTROL
Subtotal $
No Change In Fund Balance
18-16
ATTACHMENT D
BUDGET AMENDMENTS FISCAL YEAR 2021-22 QUARTER ENDING JUNE 30, 2022 18-17
City of Newport Beach
Fiscal Year 2021.22 Budget Amendments
Quarter Ending June 30, 2022
Net Effect on Fund Balance
BA # Date Amendment Type Fund Revenues Expenditures Increase/(Decrease) Department Explanation 048 04/12/2022 City Council GENERAL FUND 40,000.00 40,000.00 - Recreation & Sr Services To increase revenue estimates and expenditure appropriations from the grant reimbursement contribution from the State of California, Department of Parks and Recreation, Division of Boating and Waterways, for the cost of Sailing Program items and refurbishing current equipment for the Marina Park Sailing 049 04/12/2022 City Council GENERAL FUND CAPITAL PROJECTS - 128,050.00 (128,050.00) Public Works To increase expenditure appropriations to fund the Slurry Seal Program from the Capital Improvement Program unappropriated Fund Balance.
050 04/06/2022 City Manager GENERAL FUND 2,500.00 2,500.00 Police To increase revenue and expenditure budgets to reflect the donation from Westar Associates for Police Department Crisis Response Team (SWAT / CNT).
051 04/07/2022 City Manager GENERAL FUND 4,477.00 4,477.00 Library To increase revenue estimates and expenditure appropriations from the California Literacy Campaign. Funds will be allocated to various Library Literacy Service Accounts.
052 04/21/2022 City Manager GENERAL FUND 6,555.00 6,555.00 Library To increase revenue estimates and expenditure appropriations from the Newport Beach Public Library Foundation. Funds will be 053
04/27/2022
City Manager
GENERAL FUND
50.00 50.00
Library
To increase revenue estimates and expenditure appropriations from a donation from a Library Patron. Funds will be allocated to purchase materials for the Library's collection.
054
05/10/2022
City Council
GENERAL FUND
- 46,435.65
(46,435.65) Human Resources
To increase salary & benefit appropriations to fund the new MOU for the Lifeguard Management Association.
055
05/24/2022
City Council
GENERAL FUND
1,775.76
(1,775.76) Human Resources
To increase salary & benefit appropriations to fund the new MOU for the new Agreement for the City Clerk.
056
06/14/2022
City Council
GENERAL FUND CAPITAL PROJECTS
101,066.00
(101,066.00) Public Works
To increase expenditure appropriations to fund the Peninsula Point Encroachment Removal Project from the Capital Improvement Program Oceanfront Encroachment unappropriated Fund Balance. 057 06/14/2022 City Council GENERAL FUND 255,267.00 255,267.00 Finance To increase revenue estimates and expenditures appropriations relating to the fiscal year 2021-22 quarter three staff report. 058 05/23/2022 City Manager GENERAL FUND 8,269.00 8,269.00 Library To increase revenue estimates and expenditure appropriations from the Literacy Services Special Deposit Account. Funds will be allocated to various Literacy Services accounts.
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