14 - Financial Statement Audit Results and Related Communication for the Fiscal Year Ended June 30, 2022 — Newport Beach City Council, February 28, 2023 (part 2 of 2)

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Last Ten Fiscal Years*
Measurement Period
Total Pension Liability
Service cost
Interest on total pension liability
Differences between expected and actual experience
Changes in assumptions
Changes in benefits
Benefit payments, including refunds of employee contributions Net Change in Total Pension Liability
Total Pension Liability - beginning
Total Pension Liability - ending (a)
Plan Fiduciary Net Position
Contributions - employer
Contributions - employee
Net investment income
Administrative expense
Other miscellaneous income/(expense)
Plan to plan resource movement
Benefit payments
Net change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - beginning
Plan Fiduciary Net Position - ending (b)
$ 7,438,050
$
7,347,708
$
7,084,444
31,805,532
30,565,919
29,409,624
1,624,975
369,351
403,676
(22,976,493)
(21,516,515)
(20,129,701)
17, 892,064
16,766,463
16, 768,043
450,976,864
434,210,401
417,442,358
$ 468,868,928
$
450,976,864
$
434,210,401
$ 18,612,457
$
16,346,284
$
15,700,833
4,057,107
4,067,751
3,955,144
76,031,841
16,074,793
19,895,019
(336,753)
(454,777)
(216,502)
700
1,570
(22,976,493)
(21,516,515)
(20,129,701)
75,388,159
14,517,536
19,207,063
337,110,215
322,592,679
303,385,616
A40 An4 47A
@
447 44n 74R
@
400 Rn0 R77
Net pension liability - ending (a)-(b) $ 56,370,554 $ 113,866,649 $ 111,617,722 Plan fiduciary net position as a percentage of the total pension liability 87.98% 74.75% 74.29% Covered payroll $ 44,809,856 $ 43,902,594 $ 42,153,383
Net pension liability as percentage of covered payroll 125.80% 259.36% 264.79% Notes to Schedule:
* Fiscal year 2015 was the first year of implementation, therefore only eight years are shown.

Benefit Changes:

The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Change in Assumptions:

None in 2019 through 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. 152

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2022
Last 10 Years *
Defined Benefit Plan for Miscellaneous Employees

Page 2 of 2 ends

2019 2018 2017 2016 2015
$ 7,334,861 $ 7,151,754 $ 6,303,642 $ 6,087,960 $ 6,523,874 28,226,598 27,069,673 26,375,073 25,427,094 24,624,559
2,243,854 (4,912,853) (2,686,814) (4,736,006) -
(2,522,093) 22,616,424 (6,309,248) -
$
417,442,358
$
400,617,677
$
365,942,077
$
352,664,198
$
348,568,767
$
15,797,595
$
10,509,243
$
9,904,636
$
6,615,920
$
5,793,768
3,979,337
4,134,130
4,206,942
4,321,646
4,319,336
23,855,196
28,349,491
1,241,432
5,687,908
38,237,161
(435,499)
(375,172)
(155,791)
(287,862)
-
(827,021)
-
(700)
(2,387)
26,981
(18,458,539)
(17,249,398)
(16,714,022)
(16,374,370)
(15,290,340)
23,910,369
25,368,294
(1,519,190)
(9,777)
33,059,925
279,475,247
254,106,953
255,626,143
255,635,920
222,575,995
$
303,385,616
$
279,475,247
$
254,106,953
$
255,626,143
$
255,635,920
$
114,056,742
$
121,142,430
$
111,835,124
$
97,038,055
$
92,932,847

72.68%

69.76%

69.44%

72.48%

73.34%
$
41,468,634
$
41,727,563
$
40,031,404
$
38,512,011
$
37,775,051
275.04%
290.32%
279.37%
251.97%
246.02%
153

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2022
Last 10 Years *
Defined Benefit Plan for Miscellaneous Employees

Page 1 of 2 ends

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years*
2022 2021 2020
Actuarially determined contribution $ 14,432,250 $ 14,600,178 $ 13,080,630 Contributions in relation to the actuarially determined contributions (18,372,473) (18,730,840) (16,351,592) Contribution deficiency (excess) $ (3,940,223) $ (4,130,662) $ (3,270,962) Covered payroll $ 45,210,057 $ 44,809,856 $ 43,902,594
Contributions as a percentage of covered payroll
Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates:

40.64% 41.80% 37.25%
06/30/2019 06/30/2018 06/30/2017
Actuarial cost method
Entry age
Entry age
Entry age
Amortization method
(1)
(1)
(1)
Asset valuation method
Market Value
Market Value
Market Value
Inflation

2.50%

2.625%
Salary increases
(2)
(2)
(2)
Investment rate of return

7.00% (3)

7.25% (3)
Retirement age
(4)
(4)
(4)
Mortality
(5)
(5)
(5)
(1) Level percentage of payroll for bases established prior to June 30, 2019 and level dollar amount for bases established after June 30, 2019 (2) Depending on age, service, and type of employment
(3) Net of pension plan investment and administrative expense; includes inflation (4) Retirement assumptions are based on retirement rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board
* Fiscal year 2015 was the first year of implementation, therefore only eight years are shown. 154

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2022
Last 10 Years *
Defined Benefit Plan for Miscellaneous Employees

Page 2 of 2 ends

2019
2018
2017
2016
2015
$ 12,374,026
$ 11,924,053
$ 10,412,963
$ 9,943,342
$ 7,117,065
(15,713,898)
(15,742,587)
(10,412,963)
(9,943,342)
(7,117,065)
$ (3,339,872)
$ (3,818,534)
$ -
$ -
$
$ 42,153,383
$ 41,468,634
$ 41,727,563
$ 40,031,404
$ 38,512,011

37.28%

37.96%

24.95%

24.84%

18.48%
06/30/2016
06/30/2015
06/30/2014
06/30/2013
06/30/2012
Entry age
Entry age
Entry age
Entry age
Entry age
(1)
(1)
(1)
(1)
(1)
Market Value
Market Value
Market Value
Market Value
Market Value

2.75%

2.75%
(2)
(2)
(2)
(2)
(2)

7.375% (3)

7.5% (3)

7.5% (3)
(4)
(4)
(4)
(4)
(4)
(5)
(5)
(5)
(5)
(5)
155

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2022
Last 10 Years *
Defined Benefit Plan for Safety Employees

Page 1 of 2 ends

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Last Ten Fiscal Years*
Measurement Period
Total Pension Liability
Service cost
Interest on total pension liability
Differences between expected and actual experience
Changes in assumptions
Changes in benefits
Benefit payments, including refunds of employee contributions Net Change in Total Pension Liability
2021
June 30, 2020
$ 9,817,913
$ 9,622,985
$ 9,292,715
42,760,906
41,449,511
40,081,524
196,690
957,686
4,798,077
(33,765,218)
(32,285,653)
(30,443,097)
19,010,291
19,744,529
23,729,219
Total Pension Liability - beginning 609,831,612 590,087,083 566,357,864 Total Pension Liability - ending (a) $ 628,841,903 $ 609,831,612 $ 590,087,083 Plan Fiduciary Net Position
Contributions - employer $ 32,367,091 $ 28,539,301 $ 28,344,445 Contributions - employee 3,347,740 3,249,005 3,162,044
Net investment income 93,813,435 19,685,354 24,254,890
Administrative expense (413,178) (556,832) (263,991)
Plan to plan resource movement (1,570)
Benefit payments (33,765,218) (32,285,653) (30,443,097) Other miscellaneous income/(expense) - - 855
Net change in Plan Fiduciary Net Position 95,349,870 18,631,175 25,053,576 Plan Fiduciary Net Position - beginning 413,616,550 394,985,375 369,931,799 Plan Fiduciary Net Position - ending (b) $ 508,966,420 $ 413,616,550 $ 394,985,375 Net pension liability - ending (a)-(b) $ 119,875,483 $ 196,215,062 $ 195,101,708 Plan fiduciary net position as a percentage of the total pension liability 80.94% 67.82% 66.94% Covered payroll $ 34,863,204 $ 34,279,062 $ 33,935,043
Net pension liability as percentage of covered payroll 343.85% 572.40% 574.93% Notes to Schedule:
* Fiscal year 2015 was the first year of implementation, therefore only eight years are shown.

Benefit Changes:

Change in Assumptions:

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2022
Last 10 Years *
Defined Benefit Plan for Safety Employees

Page 2 of 2 ends

2019
2018
2017
2016
2015
June 30, 2018
June 30, 2017
June 30, 2016
June 30, 2015
June 30, 2014
$ 9,223,465
$
9,015,985
$
8,075,553
$
8,077,826
$
8,091,585
38,458,387
37,083,966
36,239,226
35,098,055
33,807,462
3,278,018
(2,192,667)
(1,613,985)
(316,827)
-
(1,630,045)
30,110,384
(8,359,009)
(29,183,598)
(28,074,414)
(27,447,982)
(25,838,982)
(24,529,802)
20,146,227
45,943,254
15,252,812
8,661,063
17,369,245
546,211,637
500,268,383
485,015,571
476,354,508
458,985,263
$ 566,357,864
$
546,211,637
$
500,268,383
$
485,015,571
$
476,354,508
$ 26,779,897
$
19,260,537
$
18,496,776
$
21,529,513
$
12,089,637
3,104,318
2,967,318
2,826,831
2,969,503
3,122,237
29,064,749
34,814,011
1,561,480
7,049,577
47,151,493
(532,480)
(462,427)
(193,780)
(357,866)
-
(855)
2,387
(29,183,598)
(28,074,414)
(27,447,982)
(25,838,982)
(24,529,802)
(1,011,188)
-
-
-
28,220,843
28,505,025
(4,754,288)
5,351,745
37,833,565
341,710,956
313,205,931
317,960,219
312,608,474
274,774,909
$ 369,931,799
$
341,710,956
$
313,205,931
$
317,960,219
$
312,608,474
$ 196,426,065
$
204,500,681
$
187,062,452
$
167,055,352
$
163,746,034

65.32%

62.56%

62.61 %

65.56%

65.63%
$ 32,866,620
$
32,450,020
$
30,816,246
$
30,189,633
$
29,944,665
597.65%
630.20%
607.03%
553.35%
546.83%
157

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2022
Last 10 Years *
Defined Benefit Plan for Safety Employees

Page 1 of 2 ends

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years*
2022
2021
2020
Actuarially determined contribution $
25,115,878
$ 25,341,788
$ 22,980,289
Contributions in relation to the actuarially determined contributions (32,317,538)
(32,251,903)
(28,531,744)
Contribution deficiency (excess) $
(7,201,660)
$ (6,910,115)
$ (5,551,455)
Covered payroll $
35,231,003
$ 34,863,204
$ 34,279,062
Contributions as a percentage of covered payroll

91.73%

92.51 %

83.23%
Notes to Schedule:

Valuation date:
06/30/2019
06/30/2018
06/30/2017
Methods and assumptions used to determine contribution rates:

Actuarial cost method
Entry age
Entry age
Entry age
Amortization method
(1)
(1)
(1)
Asset valuation method
Market Value
Market Value
Market Value
Inflation

2.50%

2.625%
Salary increases
(2)
(2)
(2)
Investment rate of return

7.00% (3)

7.25% (3)
Retirement age
(4)
(4)
(4)
Mortality
(5)
(5)
(5)
(1) Level percentage of payroll for bases established prior to June 30, 2019 and level dollar amount for bases established
after June 30, 2019
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment and administrative expense; includes inflation (4) Retirement assumptions are based on retirement rates resulting from the most recent CalPERS Experience Study adopted by the
CalPERS Board
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS
Board
* Fiscal year 2015 was the first year of implementation, therefore only eight years are shown. 158

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2022
Last 10 Years "
Defined Benefit Plan for Safety Employees

Page 2 of 2 ends

2019
2018
2017
2016
2015
$ 22,227,698
$ 21,524,636
$ 19,338,360
$ 18,466,207
$ 13,393,374
(28,346,069)
(26,620,697)
(19,338,360)
(18,466,207)
(20,993,374)
$ (6,118,371)
$ (5,096,061)
$ -
$
$ (7,600,000)
$ 33,935,043
$ 32,866,620
$ 32,450,020
$ 30,816,246
$ 30,189,633

83.53%

81.00%

59.59%

59.92%

69.54%
06/30/2016
06/30/2015
06/30/2014
06/30/2013
06/30/2012
Entry age
Entry age
Entry age
Entry age
Entry age
(1)
(1)
(1)
(1)
(1)
Market Value
Market Value
Market Value
Market Value
Market Value

2.75%

2.75%
(2)
(2)
(2)
(2)
(2)

7.375% (3)

7.5% (3)

7.5% (3)
(4)
(4)
(4)
(4)
(4)
(5)
(5)
(5)
(5)
(5)
159

CITY OF NEWPORT BEACH
Post -Employment Health Care Benefits (OPEB) Retirement Plan As of June 30, 2022
Last 10 Years *

SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years*
2022
2021
2020
2019
2018
Measurement Period
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
June 30, 2017
Total OPEB Liability
Service cost
$ 529,600
$ 521,285
$ 524,717
$ 509,434 $
478,341
Interest
2,909,400
2,944,050
2,795,490
2,814,685
2,830,153
Differences between expected and actual experience
6,159,865
(219,772)
2,532,319
-
-
Changes in assumptions
(302,512)
-
114,311
-
-
Changes in benefits terms
-
-
-
-
-
Benefit payments, including refunds of member contributions (3,786,232)
(3,787,663)
(3,627,695)
(3,641,715)
(3,513,406)
Net change in Total OPEB Liability
5,510,121
(542,100)
2,339,142
(317,596)
(204,912)
Total OPEB Liability - beginning
46,093,712
46,635,812
44,296,670
44,614,266
44,819,178
Total OPEB Liability - ending (a)
$ 51,603,833
$ 46,093,712
$ 46,635,812
$ 44,296,670 $
44,614,266
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of member contributions Administrative expense
Other expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
City's Net OPEB liability - ending (a)-(b)
$ 5,785,342 $
4,674,814 $
4,460,937 $
4,675,193 $
4,594,772
7,1 B4,241
900,087
1,495,861
1,605,114
1,875,536
(3,786,232)
(3,787,663)
(3,627,695)
(3,641,715)
(3,513,406)
(9,908)
(12,037)
(4,980)
(11,076)
(9,452)
(25,258)
9, 173,443
1,775,201
2,324,123
2,602,258
2,947,450
25,796,272
24,021,071
21,696,948
19,094,690
16,147,240
$ 34,969,715 $
25,796,272 $
24,021,071 $
21,696,948 $
19,094,690
$ 16,634,118 $
20,297,440 $
22,614,741 $
22,599,722 $
25,519,576
Plan fiduciary net position as a percentage of the total OPEB liability 67.77 % 55.96 % 51.51 % 48.98 % 42.80 Covered- employee payroll i'i $ 78,621,426 $ 77,637,171 $ 75,814,626 $ 73,999,059 $ 74,484,613 City's Net OPEB liability as percentage of covered -employee payroll 21.16% 26.14% 29.83% 30.54% 34.26% Notes to Schedule:
(1) Covered -employee payroll is used because contributions are not entirely based on a measure of pay. * Fiscal year 2018 was the first year of implementation, therefore only five years are shown. 160

CITY OF NEWPORT BEACH
Post -Employment Health Care Benefits (OPEB) Retirement Plan As of June 30, 2022
Last 10 Years "

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years"
2022 2021 2020 2019 2018
Actuarially determined contribution
$ 4,124,923
$ 4,108,719
$ 3,834,916
$ 3,827,337 $
3,925,087
Contributions in relation to the actuarially determined contributions (5,486,967)
(6,511,545)
(5,379,799)
(5,133,062)
(5,309,626)
Contribution deficiency (excess)
$ (1,362,044)
$ (2,402,826)
$ (1,544,883)
$ (1,305,725) $
(1,384,539)
Covered -employee payroll l'I
$ 79,636,594
$ 78,621,426
$ 77,637,171
$ 75,814,626 $
73,999,059
Contributions as a percentage of covered -employee payroll -6.89 %
-8.28 %
-6.93 %
-6.77 %
-7.18
Notes to Schedule:

Valuation date:

June 30, 2019
June 30, 2019
June 30, 2017
June 30, 2017
June 30, 2015
(1) Covered -employee payroll is used because contributions are not entirely based on a measure of pay * Fiscal year 2018 was the first year of implementation, therefore only five years are shown. 161

This page left blank intentionally.
162

163

This page left blank intentionally.
164

OTHER GOVERNMENTAL FUNDS
Other Special Revenue Funds
Special Revenue Funds are used to account for the proceeds of specific revenue sources which are legally restricted to expenditures for specified purposes. The City of Newport Beach Special Revenue Funds are as follows:

The State Gas Tax Fund accounts for all State Gas Tax related revenues and expenditures, including street repair, construction, and maintenance. State law requires that these funds be used exclusively for maintenance of the street and highway system.

The SB1 Gas Tax RMRA Fund accounts for all Road Maintenance and Rehabilitation Account related revenues and expenditures. State law requires that these funds be used exclusively for the transportation system. RMRA revenues are from fuel and vehicle registration taxes imposed by the state's Road Repair and Accountability Act of 2017.

The Asset Forfeiture Fund was established to account for all revenues resulting from the seizure of assets in conjunction with criminal cases (primarily drug trafficking) in which judicial proceedings have been completed. All such funds are property of the City, and it is the City's policy that these funds shall be used for enhancement of law enforcement programs.

The Office of the Traffic Safety (OTS) DUI Grant Fund is used to account for federal funding of the Selective Traffic Enforcement Program (STEP). These funds are used exclusively for DUI enforcement.

The Circulation and Transportation Fund is used to account for fair share revenues collected from developers and restricted for capital improvement projects meeting the circulation element of the City's General Plan.

The Building Excise Tax Fund is used to account for revenues received from builders or developers on building or remodeling projects within the City. Expenditures from this fund are used exclusively for public safety, libraries, parks, beaches, or recreational activities.

The Community Development Block Grant Fund is used to account for revenues and expenditures relating to the City's Community Development Block Grant program. These funds are received from the Federal Department of Housing and Urban Development and must be expended exclusively on programs for low or moderate income individuals/families.

The Air Quality Management District Fund is used to account for revenues received from the South Coast Air Quality Management District restricted for the use of reducing air pollution.

The Environmental Liability Fund is used to account for solid waste fees restricted for mitigation of future environmental liability relating to the handling of solid waste.

The Supplemental Law Enforcement Services Fund (SLESF) is used to account for revenues received from the county to be used exclusively for front line law enforcement services.

The Contributions Fund is used to account for revenues received from other government agencies or private developers and expended for specific streets, highway, construction, or water quality projects.
165

The Fostering Interest in Nature (FIIN) Fund is restricted for recreation and education programming as a mitigation effort by the California Coastal Commission.

The Restricted Programs Fund is used to account for revenues received that are restricted for affordable housing, public arts and culture, parking improvements, and disability access training.

The Measure M Fund is used to account for the revenues and expenditures of funds received from the Orange County Transportation Authority. Expenditures from this fund are used exclusively for transportation related purposes.

The Oceanfront Encroachment Fund is restricted for ocean front restoration and improvement and maintenance to enhance public access and use of ocean beaches as restricted by the Local Coastal Program.

The PEG Fees Fund is used to account for cable franchise fees received from cable providers for support of Public, Education, and Government access programming only.

Other Capital Projects Funds
Capital Projects Funds are used to account for resources used for the acquisition and construction of capital facilities by the City, except those financed by Enterprise Funds.

The City of Newport Beach Capital Projects Funds are as follows:

The Assessment District Fund is used to account for the receipt and expenditure of funds received from 1911 Act and 1915 Act Assessment Districts for capital improvement projects.

The Fire Station Fund is used to account for the design and construction of new fire stations.

The Civic Center and Park Fund is used to account for the design and construction of a new Civic Center Complex. In prior years, this fund was called City Hall Improvements Fund.

The Newport Uptown Undergrounding Fund is used to account for the receipt and expenditures related to the development within the Newport Uptown Planned Community Development Plan.

The Parks and Community Centers Fund is used to account for expenditures for park and community center rehabilitation, expansion and/or replacement in accordance with the Facilities Financing Planning Program.

The Balboa Village Parking Management District Fund is used to account for revenues and expenditures associated with parking management improvements in Balboa Village.

The Facilities Maintenance Fund is used to account for revenues and expenditures associated with the maintenance of existing facilities.

The Neighborhood Enhancement Fund is used to account for projects that will enhance neighborhood aesthetics and functionality.

The Junior Lifeguards Fund is used to account for capital improvement projects related to the Junior Lifeguards program.

The Unrestricted Capital Improvements Fund is used to separately account for general fund capital improvement projects.
166

Other Permanent Funds
Permanent Funds are used to report resources that are legally restricted for the extent that only earnings, not principal, may be used for purposes that support the reporting government's programs. The City of Newport Beach Permanent Funds are as follows:

The Bay Dredging Fund is used to account for the receipt of permanent endowments intended to fund the ongoing cost of maintaining and dredging of the Upper Newport Bay.

The Ackerman Fund is used to account for the receipt of permanent endowments intended as follows: 75% of the fund's investment proceeds will be used for the purchase of high-tech library equipment while the remaining 25% will be used for scholarships for needy students. 167

Assets
Cash and investments
Receivables:

Accounts (net of allowance)
Interest
Intergovernmental receivables
Restricted cash and investments with fiscal agent
Prepaid items
Total assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:

Accounts payable
Accrued payroll
Unearned revenue
Due to other funds
Total liabilities
Deferred inflows of resources:

Unavailable revenue

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30,2022

Page 1 of 7 ends

Special Revenue
State SB1 Gas Tax Asset OTS
Gas Tax RMRA Forfeiture DUI Grant
$ 3,004,156 $ 1,831,295 $ 521,595 $
8,646 5,374 900
159,406 296,343 - 50,559
11,300
$ 3,172,208 $ 2,133,012 $ 533,795 $ 50,559
$ 721,995 $ $ $
50,559
721,995 50,559
Fund balances (deficits):

Nonspendable:

Prepaid items
11,300
Permanent endowment - -
-
Restricted 2,450,213 2,133,012
522,495
Committed - -
-
Unassigned
Total fund balances (deficits) 2,450,213 2,133,012
533,795
Total liabilities, deferred inflows of resources
and fund balances $ 3.172.208 $ 2.133.012 $
533.795 $ 50.559
(continued)
168

Assets
Cash and investments
Receivables:

Accounts payable
Accrued payroll
Unearned revenue
Due to other funds
Total liabilities
Deferred inflows of resources:

Unavailable revenue

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30, 2022

Page 2 of 7 ends

Special Revenue
Circulation Building Community Air Quality
and Excise Development Management
Transportation Tax Block Grant District
$ 3,170,828 $ 308,710 $ $ 1,419,914
9,434 918 3,905
- - 119,371 28,240
$ 3,180,262 $ 309,628 $ 119,371 $ 1,452,059
$ $ 15,792 $ 62,672 $
- 56,699
15,792 119,371
119,371 28,241
Fund balances (deficits):

Nonspendable:

Prepaid items
Permanent endowment - - -
Restricted 3,180,262 293,836 1,423,818
Committed - - -
Unassigned (119,371)
Total fund balances (deficits) 3,180,262 293,836 (119,371) 1,423,818 Total liabilities, deferred inflows of resources
and fund balances $ 3.180.262 $ 309.628 $ 119.371 $ 1.452.059 (continued)
169

Assets
Cash and investments
Receivables:

Accounts payable
Accrued payroll
Unearned revenue
Due to other funds
Total liabilities
Deferred inflows of resources:

Unavailable revenue

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30,2022

Page 3 of 7 ends

Special Revenue
Supplemental
Environmental Law
Liability Enforcement Contributions FIIN
$ 8,544,527 $ $ 1,769,603 $ 1,294,992
6,214 209,635 -
25,353 449 3,853
- 225,296 -
49,349
$ 8,625,443 $ $ 2.204,983 $ 1,298,845
$ 24,861 $
1,513
26,374
$ 969,401 $
726,721
1,696,122
336,235
Fund balances (deficits):

Nonspendable:

Prepaid items
49,349
Permanent endowment
- - -
Restricted
8,549,720 172,626 1,298,845
Committed
- - -
Unassigned
Total fund balances (deficits)
8,599,069 172,626 1,298,845
Total liabilities, deferred inflows of resources
and fund balances $

8.625.443 $ $ 2.204.983 $ 1.298.845
(continued)
170

Assets
Cash and investments
Receivables:

Accounts payable
Accrued payroll
Unearned revenue
Due to other funds
Total liabilities
Deferred inflows of resources:

Unavailable revenue

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30,2022

Page 4 of 7 ends

Special Revenue
Restricted Oceanfront PEG
Programs Measure M Encroachment Fees
$ 1,737,821 $ 3,444,706 $ 1,162,791 $ 2,781,571
10,352
1,099,014
$ 1,737,821 $ 4,554,072 $ 1,162,791 $ 2,781,571
$ $ 1,137,065 $ $
537,972
1,675,037
683,773
Fund balances (deficits):

Nonspendable:

Prepaid items
Permanent endowment - - - -
Restricted 1,737,821 2,195,262 1,162, 791 2,781,571
Committed - - - -
Unassigned
Total fund balances (deficits) 1,737,821 2,195,262 1,162,791 2,781,571 Total liabilities, deferred inflows of resources
and fund balances $ 1.737.821 $ 4.554.072 $ 1.162.791 $ 2.781.571 (continued)
171

Assets
Cash and investments
Receivables:

Accounts payable
Accrued payroll
Unearned revenue
Due to other funds
Total liabilities
Deferred inflows of resources:

Unavailable revenue

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30,2022

Page 5 of 7 ends

Capital Projects
Newport
Assessment Civic Center Uptown
District Fire Station and Park Undergrounding
$ 5,424,225 $ 1,886,064 $ 482,875 $ 3,208
16,362 5,611 1,288 9

1.627,225
$ 5,440,587 $ 3,518,900 $ 484,163 $ 3,217
$ 393,409 $ 905,812 $
393,409 905,812 _
Fund balances (deficits):

Nonspendable:

Prepaid items
Permanent endowment -
- -
Restricted 5,047,178
721,413 - 3,217
Committed -
1,891,675 484,163 -
Unassigned
Total fund balances (deficits) 5,047,178
2,613,088 484,163 3,217
Total liabilities, deferred inflows of resources
and fund balances $ 5.440.587 $

3.518.900 $ 484.163 $ 3.217
(continued)
172

Assets
Cash and investments
Receivables:

Accounts payable
Accrued payroll
Unearned revenue
Due to other funds
Total liabilities
Deferred inflows of resources:

Unavailable revenue

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30, 2022

Page 6 of 7 ends

Capital Projects
Balboa Village
Parks and Parking
Community Management Facilities Neighborhood
Centers District Maintenance Enhancement
$ 7,915,238 $
469,636 $
2,898,405 $
2,091,264
23,549
1,400
8,623
6,222
471,036 $
2,097,486
$ 7,938,787 $
2,907,028 $
$ 254,154 $
41,972 $
189,625 $
615,095
41,972
615,095
254,154
189,625
Fund balances (deficits):

Nonspendable:

Prepaid items
Permanent endowment
Restricted - - - -
Committed 7,684,633 429,064 2,717,403 1,482,391
Unassigned
Total fund balances (deficits) 7,684,633 429,064 2,717,403 1,482,391 Total liabilities, deferred inflows of resources
and fund balances $ 7.938.787 $ 471.036 $ 2.907.028 $ 2.097.486 (continued)
173

Assets
Cash and investments
Receivables:

Accounts payable
Accrued payroll
Unearned revenue
Due to other funds
Total liabilities
Deferred inflows of resources:

Unavailable revenue

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30, 2022

Page 7 of 7 ends

Capital Projects
Permanent Fund
Total
Unrestricted
Other
Junior
Capital
Ackerman
Governmental
Lifeguards
Improvements
Bay Dredging
Donation
Funds
$ 108,911
$ 24,108,309
$ 5,295,852
$ 1,177,064
$ 82,853,560
-
-
-
215,849
324
15,756
3,502
151,830
-
-
-
1,978,229
1,627,225
60,649
$ 109.235
$ 24,108,309
$ 5,311,608
$ 1,180,566
$ 86,887, 442
$ 21,501 $ 613,473 $
21,501 613,473 _
$ 4,900 $ 5,971,727
- 1,513
1,264,693
- 107,258
4,900 7,345,191
- 1.167.620
Fund balances (deficits):

Nonspendable:

Prepaid items
-
-
60,649
Permanent endowment
3,857,000
772,781
4,629,781
Restricted
- - 1,454,608
402,885
35,531,573
Committed
87,734 23,494,836 -
-
38,271,899
Unassigned
(119,371)
Total fund balances (deficits)
87,734 23,494,836 5,311,608
1,175,666
78,374,531
Total liabilities, deferred inflows of resources
and fund balances $
109,235 $ 24,108,309 $ 5,311,608 $
1,180,566 $
86,887. 442
174

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2022

Page 1 of 7 ends

Special Revenue
State
SB1 Gas Tax
Asset
OTS
Gas Tax
RMRA
Forfeiture
DUI Grant
Revenues:

Othertaxes
$ -
$ -
$ -
$
Intergovernmental
2,030,920
1,725,818
187,285
205,750
Licenses, permits and fees
-
-
-
-
Investment income
38,595
11,182
5,656
Net decrease in fair value of investments
(38,595)
(11,182)
(14,078)
Donations
Special assessments
Other
-
-
-
-
Total revenues
2,030,920
1,725,818
178,863
205,750
Expenditures:

Current:

Public safety 182,745 205,750
Public works - -
Community development - -
Capital outlay 2,496,486 9,972
Debt service:

Principal - -
Interest and fiscal charges - - - -
Total expenditures 2,496,486 9,972 182,745 205,750
Excess (deficiency) of revenues
over expenditures (465,566) 1,715,846 (3,882) -
Other financing sources (uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances (465,566) 1,715,846 (3,882) Fund balances (deficits), beginning 2,915,779 417,166 537,677 Fund balances (deficits), ending $ 2,450,213 $ 2,133,012 $ 533,795 $ (continued)
175

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2022

Page 2 of 7 ends

Special Revenue
Circulation
Building
Community
Air Quality
and
Excise
Development
Management
Transportation
Tax
Block Grant
District
Revenues:

Othertaxes
$
$
$ -
$
Intergovernmental
291,807
109,607
Licenses, permits and fees
235,010
199,098
-
-
Investment income
35,268
4,616
14,282
Net decrease in fair value of investments
(123,676)
(15,851)
(14,282)
Donations
Special assessments
Other
-
-
-
-
Total revenues
146,602
187,863
291,807
109,607
Expenditures:

Current:

Public safety
-
-
-
-
Public works
-
Community development
-
208,791
-
Capital outlay
288,050
-
10,000
Debt service:

Principal
-
195,000
-
Interest and fiscal charges
-
7,387
-
Total expenditures
-
288,050
411,178
10,000
Excess (deficiency) of revenues
over expenditures
146,602
(100,187)
(119,371)
99,607
Other financing sources (uses):

Transfers in 69,812
Transfers out -
Total other financing sources (uses) 69,812
Net change in fund balances 146,602 (100,187) (119,371) 169,419 Fund balances (deficits), beginning 3,033,660 394,023 1,254,399 Fund balances (deficits), ending $ 3,180,262 $ 293,836 $ (119,371) $ 1,423,818 (continued)
176

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2022

Page 3 of 7 ends

Special Revenue
Supplemental
Environmental
Law
Liability
Enforcement Contributions FUN
Revenues:

Othertaxes
$ 823,732
$ - $
- $
Intergovernmental
-
211,400
5,774,197
Licenses, permits and fees
-
-
-
Investment income
95,417
14,399 14,711
Net decrease in fair value of investments
(331,447)
(47,059) (50,975)
Donations
66,992
Special assessments
-
-
Other
66,593
-
156,207
Total revenues
654,295
211,400
5,964,736 (36,264)
Expenditures:

Current:

Public safety - 211,400
Public works 636,347 -
Community development - -
Capital outlay 6,533,444
Debt service:

Principal -
Interest and fiscal charges - - -
Total expenditures 636,347 211,400 6,533,444
Excess (deficiency) of revenues
over expenditures 17,948 - (568,708) (36,264)
Other financing sources (uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances 17,948 (568,708) (36,264)
Fund balances (deficits), beginning 8,581,121 741,334 1,335,109 Fund balances (deficits), ending $ 8,599,069 $ $ 172,626 $ 1,298,845 (continued)
177

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2022

Page 4 of 7 ends

Special Revenue
Restricted Oceanfront PEG
Programs Measure M Encroachment Fees
Revenues:

Other taxes $ $ - $ $
Intergovernmental 2,378,931
Licenses, permits and fees -
Investment income 43,793
Net decrease in fair value of investments (43,793)
Donations
Special assessments
Other -
Total revenues 2,378,931
Expenditures:

Current:

Public safety
Public works
Community development
-
Capital outlay
2,771,875
Debt service:

Principal
-
Interest and fiscal charges
-
Total expenditures
2,771,875
Excess (deficiency) of revenues
over expenditures
-
(392,944)
Other financing sources (uses):

Transfers in
1,737,821
1,162,791
2,781,571
Transfers out
-
-
-
Total other financing sources (uses)
1,737,821
1,162,791
2,781,571
Net change in fund balances
1,737,821
(392,944)
1,162,791
2,781,571
Fund balances (deficits), beginning
-
2,588,206
Fund balances (deficits), ending
$ 1,737,821 $
2,195,262 $
1,162,791 $
2,781,571
(continued)
178

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2022

Page 5 of 7 ends

Capital Projects
Newport
Assessment
Civic Center
Uptown
District
Fire Station
and Park
Undergrounding
Revenues:

Othertaxes
$ $
$
$
Intergovernmental
Licenses, permits and fees
-
Investment income
55,955
32,874
4,927
36 Net decrease in fair value of investments
(193,132)
(63,734)
(17,068)
(126)
Donations
-
-
Special assessments
8,086,594
Other
49,949
-
Total revenues
7,999,366
(30,860)
(12,141)
(90)
Expenditures:

Current:

Public safety -
Public works 6,637,176
Community development - -
Capital outlay 5,352,887
Debt service:

Principal - -
Interest and fiscal charges - - 1,681
Total expenditures 6,637,176 5,352,887 1,681 -
Excess (deficiency) of revenues
over expenditures 1,362,190 (5,383,747) (13,822) (90)
Other financing sources (uses):

Transfers in 830,300
Transfers out -
Total other financing sources (uses) 830,300 -
Net change in fund balances 2,192,490 (5,383,747) (13,822) (90) Fund balances (deficits), beginning 2,854,688 7,996,835 497,985 3,307 Fund balances (deficits), ending $ 5,047,178 $ 2,613,088 $ 484,163 $ 3,217 (continued)
179

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2022

Page 6 of 7 ends

Capital Projects
Balboa Village
Parks and
Parking
Community
Management
Facilities
Neighborhood
Centers
District
Maintenance
Enhancement
Revenues:

Othertaxes
$ -
$
$
$
Intergovernmental
311
Licenses, permits and fees
-
Investment income
95,418
11,717
36,633
29,789
Net decrease in fair value of investments
(323,553)
(36,865)
(120,788)
(97,866)
Donations
Special assessments
Other
Total revenues
(227,824)
(25,148)
(84,155)
(68,077)
Expenditures:

Current:

Public safety
Public works
Community development - - - -
Capital outlay 773,311 932,060 920,548 1,560,526
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 773,311 932,060 920,548 1,560,526
Excess (deficiency) of revenues
over expenditures (1,001,135) (957,208) (1,004,703) (1,628,603) Other financing sources (uses):

Transfers in 4,013,862 1,500,000
Transfers out - -
Total other financing sources (uses) 4,013,862 1,500,000 Net change in fund balances 3,012,727 (957,208) 495,297 (1,628,603) Fund balances (deficits), beginning 4,671,906 1,386,272 2,222,106 3,110,994 Fund balances (deficits), ending $ 7,684,633 $ 429,064 $ 2,717,403 $ 1,482,391 (continued)
180

Revenues:

Othertaxes
Intergovernmental
Licenses, permits and fees
Investment income
Net decrease in fair value of investments
Donations
Special assessments
Other
Total revenues
Expenditures:

Current:

Public safety
Public works
Community development
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficits), beginning
Fund balances (deficits), ending

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2022

Page 7 of 7 ends

Capital Projects Permanent Funds
Total
Unrestricted
Other
Junior Capital
Ackerman
Governmental
Lifeguards Improvements
Bay Dredging
Donation
Funds
$ $
$
$
$ 823,732
12,916,026
434,108
2,765
60,160
13,372
621,565
(8,159)
(208,463)
(46,334)
(1,807,026)
66,992
8,086,594
272,749
(5,394)
(148,303)
(32,962)
21,414,740
599,895
-
7,273,523
-
-
4,900
213,691
240,210
4,736,378
-
26,625,747
-
-
195,000
-
-
9,068
240,210
4,736,378
4,900
34,916,924
(245,604)
(4,736,378)
(148,303)
(37,862)
(13,502,184)
469,637
21,301,066
33,866,860
-
(69,812)
(69,812)
469,637
21,231,254
33,797,048
224,033
16,494,876
(148,303)
(37,862)
20,294,864
(136,299)
6,999,960
5,459,911
1,213,528
58,079,667
$ 87,734 $
23,494,836 $
5,311,608 $
1,175,666 $
78,374,531
181

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
Revenues:

Intergovernmental
Investment income
Net decrease in fair value of investments
Total revenues
Expenditures:

Capital outlay
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Budgeted Amounts
Original Final
Variance with
Final Budget
Positive
Actual (Negative)
$ 2,177,096 $ 2,070,412 $ 2,030,920 $ (39,492)
21,669 21,669 38,595 16,926
- - (38,595) (38,595)
2,198,765 2,092,081 2,030,920 (61,161)
4,063,852 2,496,486 1,567,366
2,198,765 (1,971,771) (465,566) 1,506,205
2,915,779 2,915,779 2,915,779 -
$ 5,114,544 $ 944,008 $ 2,450,213 $ 1,506,205
182

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
SB1 Gas Tax RMRA Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:

Intergovernmental
$ 1,703,906
$ 1,647,859
$ 1,725,818
$ 77,959
Investment income
3,321
3,321
11,182
7,861
Net decrease in fair value of investments
-
-
(11,182)
(11,182)
Total revenues
1,707,227
1,651,180
1,725,818
74,638
Expenditures:

Capital outlay
-
2,000,000
9,972
1,990,028
Net change in fund balance
1,707,227
(348,820)
1,715,846
2,064,666
Fund balance, beginning
417,166
417,166
417,166
-
Fund balance, ending
$ 2,124,393
$ 68,346
$ 2,133,012
$ 2,064,666
183

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:

Intergovernmental
$ -
$ -
$ 187,285
$ 187,285
Investment income
-
-
5,656
5,656
Net decrease in fair value of investments
-
-
(14,078)
(14,078)
Total revenues
-
-
178,863
178,863
Expenditures:

Public safety
65,000
233,158
182,745
50,413
Net change in fund balance
(65,000)
(233,158)
(3,882)
229,276
Fund balance, beginning
537,677
537,677
537,677
-
Fund balance, ending
$ 472,677
$ 304,519
$ 533,795
$ 229,276
184

Revenues:

Intergovernmental
Expenditures:

Public safety
Net change in fund balance
Fund balance, beginning
Fund balance, ending

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
OTS DUI Grant Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ - $ 347,512 $ 205,750 $ (141,762)
- 347,512 205,750 141,762
185

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Circulation and Transportation Special Revenue Fund
For the Year Ended June 30, 2022
Revenues:

Licenses, permits and fees
Investment income
Net decrease in fair value of investments
Total revenues
Expenditures:

Capital outlay
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Budgeted Amounts
Original Final
359,498
Variance with
Final Budget
Positive
Actual (Negative)
$ 235,010 $ 235,010
35,268 35,268
(123,676) (123,676)
146,602 146,602
359,498
(359,498) 146,602 506,100
3,033,660 3,033,660 3,033,660 -
$ 3,033,660 $ 2,674,162 $ 3,180,262 $ 506,100
186

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Building Excise Tax Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:

Licenses, permits and fees
$ 202,950
$ 202,950
$ 199,098
$ (3,852)
Investment income
3,006
3,006
4,616
1,610
Net decrease in fair value of investments
-
-
(15,851)
(15,851)
Total revenues
205,956
205,956
187,863
(18,093)
Expenditures:

Capital outlay
-
561,663
288,050
273,613
Net change in fund balance
205,956
(355,707)
(100,187)
255,520
Fund balance, beginning
394,023
394,023
394,023
-
Fund balance, ending
$ 599,979
$ 38,316
$ 293,836
$ 255,520
187

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2022
Revenues:

Intergovernmental
Total revenues
Expenditures:

Community development
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Net change in fund balance
Fund balance, beginning
Fund balance (deficit), ending
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 359,743
$ 1,451,936
$ 291,807
$ (1,160,129)
359,743
1,451,936
291,807
(1,160,129)
183,586
1,243,859
208,791
1,035,068
-
52,942
-
52,942
195,000
195,000
195,000
-
7,387
7,387
7,387
-
385,973
1,499,188
411,178
1,088,010
(26,230)
(47,252)
(119,371)
(72,119)
$ (26,230) $ (47,252) $ (119,371) $ (72,119)
188

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Air Quality Management District Special Revenue Fund
For the Year Ended June 30, 2022
Revenues:

Intergovernmental
Investment income
Net decrease in fair value of investments
Total revenues
Expenditures:

Capital outlay
Excess (deficiency) of revenues
over expenditures
Other financing sources
Transfers in
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 100,000 $ 100,000 $ 109,607 $ 9,607
16,734 16,734 14,282 (2,452)
- - (14,282) (14,282)
116,734 116,734 109,607 (7,127)
261,941 10,000 251,941
116,734 (145,207) 99,607 244,814
69,812 69,812 -
116,734 (75,395) 169,419 244,814
1,254,399 1,254, 399 1,254, 399 -
$ 1,371,133 $ 1,179,004 $ 1,423,818 $ 244,814
189

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Environmental Liability Special Revenue Fund
For the Year Ended June 30, 2022
Revenues:

Othertaxes
Investment income
Net decrease in fair value of investments
Other revenue
Total revenues
Expenditures:

Public works
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 670,563
$ 670,563
$ 823,732
$ 153,169
153,829
153,829
95,417
(58,412)
-
-
(331,447)
(331,447)
40,000
40,000
66,593
26,593
864,392
864,392
654,295
(210,097)
639,051
639,592
636,347
3,245
225,341
224,800
17,948
(206,852)
8,581,121
8,581,121
8,581,121
-
$ 8,806,462
$ 8,805,921
$ 8,599,069
$ (206,852)
190

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Supplemental Law Enforcement Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 200,000 $ 200,000 $ 211,400 $ 11,400 Expenditures:

Public safety 200,000 200,000 211,400 (11,400)
Net change in fund balance - - - -
Fund balance, beginning - - - -
Fund balance, ending $ - $ - $ - $ -
191

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Contributions Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:

Intergovernmental
$ 8,067,689
$ 10,674,974
$ 5,774,197
$ (4,900,777)
Investment income
36,533
36,533
14,399
(22,134)
Net decrease in fair value of investments
-
-
(47,059)
(47,059)
Donations
-
7,419
66,992
59,573
Other
-
198,857
156,207
(42,650)
Total revenues
8,104,222
10,917,783
5,964,736
(4,953,047)
Expenditures:

Capital outlay
-
11,687,715
6,533,444
5,154,271
Net change in fund balance
8,104,222
(769,932)
(568,708)
201,224
Fund balance, beginning
741,334
741,334
741,334
-
Fund balance, ending
$ 8,845,556
$ (28,598)
$ 172,626
$ 201,224
192

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
MIN Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:

Investment income $ 23,910 $ 23,910 $ 14,711 $ (9,199)
Net decrease in fair value of investments - - (50,975) (50,975) Total revenues 23,910 23,910 (36,264) (60,174)
Expenditures:

Community services 147,000 147,000 - 147,000
Net change in fund balance (123,090) (123,090) (36,264) 86,826 Fund balance, beginning 1,335,109 1,335,109 1,335,109 - Fund balance, ending $ 1,212,019 $ 1,212,019 $ 1,298,845 $ 86,826 193

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Restricted Programs Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
Other financing sources (uses):

Transfers in
$ - $ 1,737,821
$ 1,737,821
$
Net change in fund balance
- 1,737,821
1,737,821
-
Fund balance, beginning
- -
-
-
Fund balance, ending
$ - $ 1,737,821
$ 1,737,821
$ -
194

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Measure M Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:

Intergovernmental
$ 5,043,078
$ 3,289,950
$ 2,378,931
$ (911,019)
Investment income
7,123
7,123
43,793
36,670
Net decrease in fair value of investments
-
-
(43,793)
(43,793)
Total revenues
5,050,201
3,297,073
2,378,931
(918,142)
Expenditures:

Capital outlay
3,038,500
5,706,234
2,771,875
2,934,359
Net change in fund balance
2,011,701
(2,409,161)
(392,944)
2,016,217
Fund balance, beginning
2,588,206
2,588,206
2,588,206
-
Fund balance, ending
$ 4,599,907
$ 179,045
$ 2,195,262
$ 2,016,217
195

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Oceanfront Encroachment Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
Other financing sources:

Transfers in
$ - $ 1,162,791
$ 1,162,791
$ -
Net change in fund balance
- 1,162,791
1,162,791
-
Fund balance, beginning
- -
-
-
Fund balance, ending
$ - $ 1,162,791
$ 1,162,791
$ -
196

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
PEG Fees Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
Other financing sources:

Transfers in
$ - $ 2,781,571
$ 2,781,571
$ -
Net change in fund balance
- 2,781,571
2,781,571
-
Fund balance, beginning
- -
-
-
Fund balance, ending
$ - $ 2,781,571
$ 2,781,571
$ -
197

This page left blank intentionally.
198

199

This page left blank intentionally.

INTERNAL SERVICE FUNDS
The Internal Service Funds are used to allocate the cost of providing goods and services by one department to other departments on a cost reimbursement basis.

The City of Newport Beach Internal Service Funds are listed below:

The Insurance Reserve Fund is used to account for the City's self - insured general liability and workers' compensation program.

The Compensated Absences Fund is used to account for the City's accumulated liability for compensated absences.

The Retiree Insurance Fund is used to account for the cost of providing post -employment health care benefits.

The Equipment Maintenance Fund is used to account for the cost of maintaining and replacing the City's rolling stock fleet, parking equipment, coordinated communications system equipment, fire equipment and recreation equipment.

The Information Technology Fund is used to account for the cost of maintaining and replacing the City's computers, printers, copiers and telecommunication services to other departments.
201

CITY OF NEWPORT BEACH
Internal Service Funds
Combining Statement of Net Position
June 30, 2022
Total
Insurance
Compensated
Retiree
Equipment
Information
Internal
Assets
Reserve
Absences
Insurance
Maintenance
Technology
Service Funds
Current assets:

Cash and investments
$ 38,522,094
$ 5,564,921
$ 1,210,639
$ 14,092,188
$ 9,810,111
$ 69,199,953
Receivables:

Accounts (net of allowance)
-
-
6,225
11,014
-
17,239
Interest
114,545
15,013
3,072
41,943
28,950
203,523
Inventories
-
-
-
381,385
-
381,385
Prepaid items
11,801
259,182
1,964,440
329,299
2,564,722
Total current assets
38,648,440
5,579,934
1,479,118
16,490,970
10,168,360
72,366,822
Noncurrent assets:

Capital assets:

Equipment
-
-
-
42,089,030
3,442,988
45,532,018
Intangible right to use equipment
-
348,272
348,272
Structures
39,581
-
39,581
Software
-
3,603,419
3,603,419
Work in progress
639,243
639,243
Less accumulated depreciation/amortization
(26,330,020)
(6,043,901)
(32,373,921)
Total capital assets (net of accumulated
depreciation/amortization)
15,798,591
1,990,021
17,788,612
Total assets
38,648,440
5,579,934
1,479,118
32,289,561
12,158,381
90,155,434
Deferred outflows of resources:

Deferred amount from pension plans
-
-
-
362,551
726,688
1,089,239
Deferred amount from OPEB
140,200
281,020
421,220
Total deferred outflows of resources
502.751

1.007.708

1.510.459
Liabilities
Current liabilities:

Accounts payable
558,108
506,354
-
468,398
434,805
1,967,665
Accrued payroll
9,238
-
178,128
31,889
79,798
299,053
Due to other funds
-
353,001
-
-
353,001
Workers' compensation - current
2,930,962
-
2,930,962
General liability - current
2,865,644
-
2,865,644
Compensated absences - current
-
4,385,927
-
4,385,927
Lease liability - current
66,721
66,721
Total current liabilities
6,363,952
4,892,281
531,129
500,287
581,324
12,868,973
Noncurrent liabilities:

Workers' compensation
12,823,626
-
-
-
-
12,823,626
General liability
5,830,236
-
5,830,236
Compensated absences
-
8,391,481
-
-
8,391,481
Lease liability
196,714
196,714
Net pension liability
-
1,042,897
2,090,386
3,133,283
Net OPEB liability
187,694
376,224
563,918
Total noncurrent liabilities
18,653,862
8,391,481
-
1,230,591
2,663,324
30,939,258
Total liabilities
25,017,814
13,283,762
531,129
1,730,878
3,244,648
43,808,231
Deferred inflows of resources:

Deferred amount from pension plans
-
-
-
695,023
1,393,105
2,088,128
Deferred amount from OPEB
51,084
102,393
153,477
Total deferred inflows of resources
746,107
1,495,498
2,241,605
Net Position
Invested in capital assets
-
-
17,723,541
1,707,406
19,430,947
Unrestricted
13,630,626
(7,703,828)
947,989
12,591,786
6,718,537
26,185,110
Total net position
$ 13,63 6626
$ (7,703,828) $
947,989
$ 30,315,327
$ 8,425,943
$ 45,616,057
202

CITY OF NEWPORT BEACH
Internal Service Funds
Combining Statement of Revenues, Expenses
and Changes in Net Position
For the Year Ended June 30, 2022
Total
Insurance
Compensated
Retiree
Equipment
Information
Internal
Reserve
Absences
Insurance
Maintenance
Technology
Service Funds
Operating revenues:

Charges for services
$ 8,961,000
$ 2,713,271
$ 4,940,367
$ 7,414,613
$ 7,307,210
$ 31,336,461
Employee contributions
-
-
40,451
-
-
40,451
Other
459,706
251,068
169
710,943
Total operating revenues
9,420,706
2,713,271
4,980,818
7,665,681
7,307,379
32,087,855
Operating expenses:

Salaries and wages
-
-
165
750,679
1,906,977
2,657,821
Depreciation/amortization
-
3,342,645
351,935
3,694,580
Professional services
36,240
375,361
411,601
Maintenance and supplies
1,495,256
1,819,339
3,314,595
Fleet parts and supplies
572,898
-
572,898
Telecommunication
-
216,006
216,006
Hardware
336,181
336,181
Software
-
233,186
233,186
Workers' compensation
4,213,387
-
4,213,387
Claims and judgments
5,957,756
-
5,957,756
Compensated absences
-
2,058,475
-
2,058,475
OPEB
-
4,499,498
4,499,498
Other
20,637
20,637
Total operating expenses
10,171,143
2,058,475
4,520,300
6,197,718
5,238,985
28,186,621
Operating income (loss)
(750,437)
654,796
460,518
1,467,963
2,068,394
3,901,234
Nonoperating revenues:

Investment income
402,869
60,058
12,391
153,487
103,430
732,235
Net decrease in fair value of investments
(1,432,870)
(206,360)
(44,451)
(544,611)
(368,331)
(2,596,623)
Gain on sale of capital assets
290,940
-
290,940
Interest expense
(620)
(620)
Total nonoperating revenues
(1,030,001)
(146,302)
(32,060)
(100,184)
(265,521)
(1,574,068)
Income (loss) before transfers
(1,780,438)
508,494
428,458
1,367,779
1,802,873
2,327,166
Transfer out
(472,403)
(812,227)
(1,284,630)
Change in net position
(1,780,438)
508,494
428,458
895,376
990,646
1,042,536
Net position, beginning
15,411,064
(8,212,322)
519,531
29,419,951
7,435,297
44,573,521
Net position, ending
$ 13,630,626
$ (7,703,828)
$ 947,989
$ 30,315,327
$ 8,425,943
$ 45,616,057
203

CITY OF NEWPORT BEACH
Internal Service Funds
Combining Statement of Cash Flows
For the Year Ended June 30, 2022
Total
Insurance
Compensated
Retiree
Equipment
Information
Internal
Reserve
Absences
Insurance
Maintenance
Technology
Service Funds
Cash flows from operating activities
Receipts from user departments
$ 9,980,942
$ 2,713,271
$ 4,940,518
$ 7,592,640
$ 7,307,210
$ 32,534,581
Payments to employees
(3,231,520)
(2,761,452)
-
(1,108,538)
(2,621,638)
(9,723,148)
Payments to suppliers
(6,441,496)
-
(4,511,012)
(323,683)
(2,484,162)
(13,760,353)
Other operating cash receipts
459,706
40,451
251,068
169
751,394
Net cash provided (used) by operatinq activities
767,632
(48,181)
469,957
6,411,487
2,201,579
9,802,474
Cash flows from noncapital financing activities:

Cash received from other funds
-
-
165
-
-
165
Cash paid to other funds
-
-
-
(472,403)
(812,227)
(1,284,630)
Net cash provided (used) by noncapital financing activities 165
(472,403)
(812,227)
(1,284,465)
Cash flows from capital and related financing activities:

Acquisition of capital assets
-
-
-
(4,654,689)
(370,174)
(5,024,863)
Lease liabilities and related
-
-
-
-
(33,041)
(33,041)
Proceeds from sale of capital assets
290,940
290,940
Net cash (used) for capital and related financinq activities (4,363,749)
(403,215)
(4,766,964)
Cash flows from investinq activities:

Investment (loss)
(1,030,165)
(145,584)
(33,307)
(394,630)
(266,983)
(1,870,669)
Net cash (used) by investinq activities
(1,030,165)
(145,584)
(33,307)
(394,630)
(266,983)
(1,870,669)
Net increase (decrease) in cash and cash equivalents
(262,533)
(193,765)
436,815
1,180,705
719,154
1,880,376
Cash and cash equivalents, beqinninq
38,784,627
5,758,686
773,824
12,911,483
9,090,957
67,319,577
Cash and cash equivalents, ending
$ 38.522,094
$ 5,564,921
$ 1,210,639
$ 14,092,188
$ 9,810,111
$ 69,199,953
Reconciliation to the statement of net position:

Cash and investments reported on statement of net position $ 38,522,094
$ 5,564,921
$ 1,210,639
$ 14,092,188
$ 9,810,111
$ 69,199,953
Cash and cash equivalents
$ 38,522,094
$ 5,564,921
$ 1,210,639
$ 14,092,188
$ 9,810,111
$ 69,199,953
Reconciliation of operatinq income (loss) to net cash
Provided by operatinq activities:

Operating income (loss)
Adjustments to reconcile operatinq income (loss)
to net cash provided by operatinq activities:

Depreciation
Changes in operatinq assets and liabilities:

Decrease in accounts receivable
Decrease in inventories
(Increase) decrease in prepaid items
Increase (decrease) in accounts payable and accrued payroll Increase in workers' compensation
Increase in general liability
(Decrease) in compensated absences
(Decrease) in net pension liability and deferred cash flows (Decrease) in net OPEB liability and deferred cash flows Total adjustments
Net cash provided (used) by operatinq activities
Noncash investing, capital, and financing activities:

Net (decrease) in fair value of investments
Obtaining an intangible right to use lease asset
Total of noncash activities
$ (750,437) $ 654,796 $ 460,518 $ 1,467,963 $ 2,068,394 $ 3,901,234 -
-
-
3,342,645
351,935
3,694,580
1,019,942
-
151
178,027
-
1,198,120
-
-
-
66,070
-
66,070
52,663
-
(5,987)
1,629,343
128,398
1,804,417
(986,369)
32,622
15,275
89,095
377,758
(471,619)
1,001,588
-
-
-
-
1,001,588
430,245
-
-
-
-
430,245
-
(735,599)
-
-
-
(735,599)
-
-
-
(324,477)
(650,383)
(974,860)
(37,179)
(74,523)
(111,702)
1,518,069
(702,977)
9,439
4,943,524
133,185
5,901,240
$ 767.632
$ (48.181) $
469.957
$ 6.411.487
$ 2.201.579
$ 9.802.474
$ (1,432,870) $ (206,360) $ (44,451) $ (544,611) $ (368,331) $ (2,596,623) (295,856) (295,856)
$ (1,432,870) $ (206,360) $ (44,451) $ (544,611) $ (664,187) $ (2,892,479) 204

205

FIDUCIARY FUNDS
Fiduciary Funds are used to account for assets held by the City in a trustee capacity, or as an agent for other government entities, private organizations, or individuals.

The City of Newport Beach Fiduciary Funds are listed below:

The Special Assessment District Fund is used to account for funds received from affected property owners and payable to holders of 1911 Act and 1915 Act special assessment bonds.

The Tourism Business Improvement Fund is used to account for the Newport Beach Tourism Business Improvement District's special assessment on short term room rental revenue collected by the City for Visit Newport Beach Inc.

The Other Business Improvement Fund is used to account for monies collected from local business districts for district property improvements and business enhancement.

The Police Custodial Fund is used to account for monies received by the City's police department in a custodial capacity, such as warrants and items pending adjudication.
206

CITY OF NEWPORT BEACH
Fiduciary Funds
Combining Statement of Fiduciary Net Position
June 30, 2022
Custodial Funds
Special
Tourism
Other
Total
Assessment
Business
Business
Police
Custodial
District
Improvement
Improvement
Custodial
Funds
Assets
Cash and investments
$ 32,241
$ 372,792
$ 9,789
$ 260,613
$ 675,435
Restricted cash and investments with fiscal agen
2,288,581
-
-
-
2,288,581
Receivable:

Interest
537
537
Intergovernmental receivable
21,046
-
-
-
21,046
Total assets
2,342,405
372,792
9,789
260,613
2,985,599
Liabilities
Due to others
464
372,792
9,789
646
383,691
Total liabilities
464
372,792
9,789
646
383,691
Net Position
Restricted for:

Individuals, organizations, and other governmentE 2,341,941 259,967 2,601,908 Total net position $ 2,341,941 $ $ $ 259,967 $ 2,601,908 207

CITY OF NEWPORT BEACH
Fiduciary Funds
Combining Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2022
Additions
Special assessments
Investment earnings
Other
Total additions
Deductions
Debt service
Administrative
Other
Total deductions
Net increase (decrease) in fiduciary net position
Net position, beginning of year
Net position, end of year
Custodial Funds
Special Tourism Other Total
Assessment Business Business Police Custodial
District Improvement Improvement Custodial Funds
$ 1,664,084
991
153,604
1,818,679
$ - $ 1,664,084
29 1,020
60,939 214,543
60,968 1,879,647
1,276,605 1,276,605
66,942 - 66,942
- 71,759 71,759
1,343,547 71,759 1,415,306
475,132 (10,791) 464,341
1,866,809 270,758 2,137,567
$ 2,341,941 $ $ $ 259,967 $ 2,601,908
208

' ♦mac=, '

STATISTICAL SECTION
-- Rwjglml� r_

This page left blank intentionally.
210

FINANCIAL TRENDS
This section of the City of Newport Beach's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. The statistical information presented herein is un-audited.

The following schedules contain trend information illustrating how the City's financial performance and well-being have changed over time:
• Net Position by Component
• Changes in Net Position
• Fund Balances of Governmental Funds
• Changes in Fund Balance of Governmental Funds
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports and underlying accounting records for the relevant years. 211

CITY OF NEWPORT BEACH
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2013
2014'
20152
20163
Governmental activities:

Net investment in capital assets
$ 2,124,797,794
$ 2,148,942,928
$ 2,176,644,408
$ 2,193,773,102
Restricted
72,119,674
59,998,344
45,689,702
44,033,677
Unrestricted
77,966,414
(184,990,765)
(150,532,773)
(130,468,268)
Total governmental activities
$ 2,274,883,882
$ 2,023,950,507
$ 2,071,801,337
$ 2,107,338,511
Business -type activities:

Net investment in capital assets
$ 111,177,135
$ 115,948,522
$ 113,914,514
$ 117,055,576
Unrestricted
19,172,398
13,160,611
21,756,124
23,430,189
Total business -type activities
$ 130,349,533
$ 129,109,133
$ 135,670,638
$ 140,485,765
Primary government
Net investment in capital assets
$ 2,235,974,929
$ 2,264,891,450
$ 2,290,558,922
$ 2,310,828,678
Restricted
72,119,674
59,998,344
45,689,702
44,033,677
Unrestricted
97,138,812
(171,830,154)
(128,776,649)
(107,038,079)
Total primary government
$ 2,405,233,415
$ 2,153,059,640
$ 2,207,471,975
$ 2,247,824,276
Reflects restatement of net position due to the implementation of GASB 68 in fiscal year ended June 30, 2015 and an adjustment to record deferred amount from gain on refunding. 2 Reflects restatement of net position due to compensated absences and deferred outflow adjustments related to fiscal year ended June 30, 2016.
3 Reflects restatement of net position due to deferred outflow adjustments related to fiscal year ended June 30, 2017. 4 Reflects restatement of net position due to implementation of GASB 75 in fiscal year ended June 30, 2018. 5 Reflects restatement of net position due to adjustments for capital assets and compensated absences liability in fiscal year ended June 30, 2019.
6 2022 data varies from trend due to receipt of revenues such as property taxes and sales taxes that were not spent or restricted by the end of the fiscal year.

The City of Newport Beach implemented GASB 63 and GASB 65 for the fiscal year ended June 30, 2013.

The City of Newport Beach implemented GASB 68 for the fiscal year ended June 30, 2015.

The City of Newport Beach implemented GASB 75 for the fiscal year ended June 30, 2018.

The City of Newport Beach implemented GASB 87 for the fiscal year ended June 30, 2022. 212

CITY OF NEWPORT BEACH
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
20174 20185 2019 2020 2021 2022
$ 2,201,552,683 $ 21208,832,391 $ 2,218,040,304 $ 2,217,852,660 $ 2,227,572,605 $ 2,223,773,786 45,753,736 49,791,908 56,426,811 67,708,225 67,189,020 78,100,496 (133,461,197) (122,024,754) (102,035,181) (90,214,086) (72,301,558) (8,183,288) $ 2,113,845,222 $ 2,136,599,545 $ 2,172,431,934 $ 2,195,346,799 $ 2,222,460,067 $ 2,293,690,994 $ 116,238,944 $ 119,375,596 $ 119,346,350 $ 120,291,689 $ 124,775,772 $ 128,244,924 28,890,311 29,183,382 30,331,669 30,276,662 27,039,499 28,559,633 $ 145,129,255 $ 148,558,978 $ 149,678,019 $ 150,568,351 $ 151,815,271 $ 156,804,557 $ 2,317,791,627 $ 2,328,207,987 $ 2,337,386,654 $ 2,338,144,349 $ 2,352,348,377 $ 2,352,018,710 45,753,736 49,791,908 56,426,811 67,708,225 67,189,020 78,100,496 (104,570,886) (92,841,372) (71,703,512) (59,937,424) (45,262,059) 20,376,345 s $ 2,258,974,477 $ 2,285,158,523 $ 2,322,109,953 $ 2,345,915,150 $ 2,374,275,338 $ 2,450,495,551 213

CITY OF NEWPORT BEACH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2013
2014
2015
2016
Expenses:

Governmental activities:

General government
$ 15,830,575
$ 18,834,165
$ 24,558,041 $
19,335,275
Public safety
83,235,188
87,676,062
96,945,872
91,046,455
Public works
47,794,631
42,953,118
45,774,939
45,443,988
Community development
9,223,098
10,283,481
10,073,248
9,943,868
Community services
22,244,661
21,357,271
22,418,287
22,700,052
Interest on long-term debt
7,989,339
7,888,192
7,711,334
7,615,094
Total governmental activities expenses
186,317,492
188,992,289
207,481,721
196,084,732
Business -type activities:

Water
20,208,300
22,037,284
21,175,954
21,605,197
Wastewater
3,462,165
3,368,656
3,452,398
3,818,165
Total business -type activities expenses
23,670,465
25,405,940
24,628,352
25,423,362
Total primary government expenses
209,987,957
214,398,229
232,110,073
221,508,094
Program revenues:

Governmental activities:

Charges for services:

General government
2,759,306
3,046,232
3,647,210
3,722,557
Public safety
16,008,421
19,124,113
19,386,017
19,108,222
Public works
5,019,835
5,517,103
5,276,991
5,319,510
Community development
7,057,010
8,043,390
8,608,645
8,419,588
Community services
13,176,050
13,270,316
13,667,775
13,964,018
Operating grants and contributions:
11,290,989
15,196,696
10,673,286
17,826,914
Capital grants and contributions:
25,613,846 '
563,786
38,157,665 2
2,717,504
Total governmental activities program revenues
80,925,457
64,761,636
99,417,589
71,078,313
Business -type activities:

Charges for services:

Water
26,795,767
29,397,882
27,705,129
24,499,952
Wastewater
3,450,638
3,438,670
3,326,362
3,065,762
Operating grants and contributions:
-
-
-
-
Total business -type activities program revenues
30,246,405
32,836,552
31,031,491
27,565,714
Total primary government program revenues
111,171,862
97,598,188
130,449,080
98,644,027
Net revenues (expenses):

Governmental activities
(105,392,035)
(124,230,653)
(108,064,132)
(125,006,419)
Business -type activities
6,575,940
7,430,612
6,403,139
2,142,352
Total net revenues (expenses)
$ (98,816,095)
$ (116,800,041)
$ (101,660,993) $
(122,864,067)
General revenues and other changes in net position:

Governmental activities:

Taxes:

Property tax
$ 81,603,194
$ 79,889,346
$ 84,121,461
$ 91,516,611
Sales tax
20,764,204
23,142,065
24,832,412
33,937,986
Sales tax in -lieu
7,078,517
7,727,876
8,046,424
2,870,474
Transient occupancy tax
16,500,285
18,176,369
20,369,158
21,083,199
Business license tax
4,145,666
4,156,130
4,141,282
4,024,386
Franchise tax
3,820,723
3,998,943
4,189,130
4,047,584
Othertaxes
286,880
216,604
354,919
327,009
Investment income
219,091
542,915
437,272
584,259
Net increase (decrease) in fair value of investments
-
53,783
61,337
376,311
Other
2,748,524
3,803,728
3,161,567
4,001,486
Capital contributions
319,884
-
-
-
Transfers
-
-
-
-
Total governmental activities
137,486,968
141,707,759
149,714,962
162,769,305
Business -type activities:

Investment income
22,442
128,439
123,445
216,576
Net increase (decrease) in fair value of investments
-
18,199
34,921
148,527
Other
-
-
2,375,000
Capital contributions
(319,884)
22,516
Transfers
-
-
-
Total business -type activities
(297,442)
146,638
158,366
2,762,619
Total primary government
137,189,526
141,854,397
149,873,328
165,531,924
Changes in net position
Governmental activities
32,094,933
17,477,106
41,650,830
37,762,886
Business -type activities
6,278,498
7,577,250
6,561,505
4,904,971
Total primary government
$ 38,373,431
$ 25,054,356
$ 48,212,335
$ 42,667,857
' 2013 data varies from trend because of increased capital assets related to contribution from State of California. 2 Data varies from trend because of one-time receipt of developer contributions. 214

CITY OF NEWPORT BEACH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2017 2018 2019 2020 2021 2022
$ 20,443,569
$ 19,011,099
$
20,549,224
$
20,714,050
$
20,177,482
$
19,374,179
102,494,314
107,647,562
111,556,065
119,194,302
119,184,958
104,767,466
54,039,601
47,615,000
53,339,878
60,054,860
63,689,155
65,031,715
12,056,086
12,377,394
11,493,204
12,842,020
12,157,226
9,664,500
26,583,440
27,307,115
27,758,097
26,668,079
28,214,205
24,508,702
7,472,188
7,381,743
7,187,971
7,064,521
7,321,612
6,877,577
223,089,198
221,339,913
231,884,439
246,537,832
250,744,638
230,224,139
22,004,013
23,724,918
26,898,075
27,387,120
28,943,243
27,117,471
4,218,926
4,158,155
4,222,228
4,291,755
5,223,245
4,094,448
26,222,939
27,883,073
31,120,303
31,678,875
34,166,488
31,211,919
249,312,137
249,222,986
263,004,742
278,216,707
284,911,126
261,436,058
5,089,123
5,355,887
5,887,265
3,846,962
2,914,007
3,625,809
19,899,242
20,733,883
21,979,376
22,232,248
22,038,904
23,156,703
5,214,426
5,789,579
5,778,441
5,054,694
5,067,478
7,538,103
10,838,114
9,956,226
9,902,445
9,599,848
10,491,970
11,119,757
13,653,466
13,974,329
13,556,360
16,936,285
17,601,288
22,302,788
11,632,188
11,943,941
14,021,506
14,659,016
20,361,620
16,800,039
27,993,317 2
1,815,464
6,638,356
7,352,407
7,658,387
8,693,429
94,319,876
69,569,309
77,763,749
79,681,460
86,133,654
93,236,628
25,371,307
26,931,193
26,843,751
27,100,429
30,739,726
32,104,202
3,161,114
3,445,772
4,069,265
4,110,815
4,618,186
4,825,249
-
-
-
-
-
116,629
28,532,421
30,376,965
30,913,016
31,211,244
35,357,912
37,046,080
122,852,297
99,946,274
108,676,765
110,892,704
121,491,566
130,282,708
(128,769,322)
(151,770,604)
(154,120,690)
(166,856,372)
(164,610,984)
(136,987,511)
2,309,482
2,493,892
(207,287)
(467,631)
1,191,424
5,834,161
$ (126,459,840)
$ (149,276,712)
$
(154,327,977)
$
(167,324,003)
$
(163,419,560)
$
(131,153,350)
$ 96,964,060
$ 101,593,290
$
108,365,261
$
113,313,535
$
119,157,057
$
124,335,985
33,702,895
36,373,253
37,168,063
36,232,969
38,956,275
46,164,860
22,382,361
22,857,737
24,697,446
21,097,384
16,886,197
26,677,331
4,149,016
4,282,935
4,428,440
4,882,419
4,481,349
4,363,145
4,026,005
4,228,469
4,286,496
4,394,156
4,204,224
4,561,278
358,209
3,346,987
2,633,720
2,592,369
4,166,549
4,333,071
589,001
632,808
2,644,319
2,621,488
2,603,982
1,995,214
-
-
2,234,249
2,520,033
(2,086,189)
(6,856,640)
2,290,482
3,416,348
3,495,085
2,116,884
3,354,808
2,644,194
(3,500,000)
-
-
-
-
160,962,029
176,731,827
189,953,079
189,771,237
191,724,252
208,218,438
77,752
184,906
713,970
732,099
525,295
345,218
-
-
612,358
625,864
(469,799)
(1,190,093)
3,500,000
-
-
3,577,752
184,906
1,326,328
1,357,963
55,496
(844,875)
164,539,781
176,916,733
191,279,407
191,129,200
191,779,748
207,373,563
32,192,707
24,961,223
35,832,389
22,914,865
27,113,268
71,230,927
5,887,234
2,678,798
1,119,041
890,332
1,246,920
4,989,286
$ 38,079,941
$ 27,640,021
$
36,951,430
$
23,805,197
$
28,360,188
$
76,220,213
215

CITY OF NEWPORT BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2013
2014
2015
2016
General fund:

Nonspendable
$ 9,919,486
$ 16,316,499 $
15,784,396
$ 15,210,896
Restricted
2,410,373
3,939,751
5,389,810
3,083,133
Committed
29,371,507
12,782,235 '
11,847,852
2,726,020 2
Assigned
6,843,417
1,326,170
1,421,225
4,201,311
Unassigned
32,585,375
51,015,820 '
55,509,258
56,618,041
Total general fund
$ 81,130,158
$ 85,380,475 $
89,952,541
$ 81,839,401 2
All other governmental funds
Nonspendable
$ 4,697,220
$ 4,629,781
$ 4,669,269
$ 4,629,781
Restricted
27,433,342
33,243,790
29,842,384
33,662,859
Committed
33,961,163
19,513,389
26,159,261
40,248,977
Unassigned
(15,723,261)
(14,291,969)
(12,495,729)
(15,422,984)
Total all other governmental funds
$ 50,368,464
$ 43,094,991
$ 48,175,185
$ 63,118,633
Total all governmental funds
$ 131,498,622
$ 128,475,466
$ 138,127,726
$ 144,958,034
Data varies from trend due to the reclassification of the contingency reserve from committed fund balance to unassigned fund balance per council approval.
2 Data varies from trend due to the moving of general fund capital projects to a separate capital project fund. 3 Data varies from trend due to additional funds set aside for seawall construction and pension related items. 4 Data varies from trend due to the relocation of restricted funds to special revenue funds. 5 Data varies from trend due to the City's absence of fund balance not restricted or committed to be used for specific purposes in fiscal year ended June 30, 2022.

B Data varies from trend due to additional funds set aside mainly in the Facilities Financial Planning Reserve Fund and Unrestricted Capital Improvements Fund.
216

CITY OF NEWPORT BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2017 2018 2019 2020 2021 2022
$ 14,434,017 $ 14,050,930 $ 13,147,221 $ 11,864,115 $ 10,637,097 $ 9,407,143 3,797,009 4,412,302 4,757,437 5,710,434 4,876,025 - 4
10,570,638 3 13,444,487 13,335,675 2,210,811 3,235,746 4,429,573 567,132 590,368 1,199,682 2,598,828 1,489,350 - e
60,009,244 61,415,049 64,146,123 76,699,284 85,715,180 83,302,665 $ 89,378,040 3 $ 93,913,136 $ 96,586,138 $ 99,083,472 $ 105,953,398 $ 97,139,381 $ 4,666,256 $ 4,787,243 $ 4,715,545 $ 4,646,529 $ 4,707,330 $ 4,690,430 31,950,139 38,629,419 45,958,167 53,310,518 63,914,627 73,013,208 49,510,047 41,731,742 40,732,124 48,032,259 47,863,154 73,243,534 s (6,308,331) (376,162) (253) (50,137) (136,299) (119,371) $ 79,818,111 $ 84,772,242 $ 91,405,583 $ 105,939,169 $ 116,348,812 $ 150,827,801 $ 169,196,151 $ 178,685,378 $ 187,991,721 $ 205,022,641 $ 222,302,210 $ 247,967,182 Fund Balances
$160,000,000
ir
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000 —
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
❑ Total General Fund
■ Total all other Governmental Funds
217

CITY OF NEWPORT BEACH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2013
2014
2015
2016
Revenues:

Taxes
$ 134,733,550
$ 137,910,879
$ 146,664,903
$ 158,386,385
Intergovernmental
11,393,589
16,825,839
11,813,208
17,262,147
Licenses, permits and fees
7,682,555
6,659,203
14,676,754
6,571,123
Charges for services
16,254,399
16,864,092
16,914,210
18,827,991
Fines and forfeitures
3,649,532
3,272,951
3,732,405
3,684,602
Investment income
372,514
1,136,062
928,729
1,157,539
Net increase (decrease) in fair value of investments
-
124,439
177,485
769,460
Property income
19,847,371
22,214,256
21,406,667
22,259,425
Donations
587,445
1,170,171
22,249,427
4,190,822
Special assessments
-
-
-
-
Other
3,543,894
1,400,048
6,984,418
2,982,924
Total revenues
198,064,849
207,577,940
245,548,206
236,092,418
Expenditures:

Current:

General government
13,671,480
14,471,167
14,060,512
14,629,672
Public safety
80,546,969
82,642,988
94,568,122
96,225,784
Public works
32,451,624
32,414,457
33,694,578
36,000,905
Community development
8,994,710
9,768,928
9,876,706
10,913,205
Community services
18,872,022
19,047,813
20,235,546
21,784,680
Capital outlay
72,133,582
33,572,193
47,169,671
31,934,463
Debt service:

Principal
3,998,000
4,091,000
4,183,000
4,272,000
Interest and fiscal charges
8,152,488
8,052,927
7,957,811
7,839,341
Total expenditures
238,820,875
204,061,473
231,745,946
223,600,050
Excess (deficiency) of revenues over (under)
expenditures
(40,756,026)
3,516,467
13,802,260
12,492,368
Other financing sources (uses):

Transfers in
47,875,107
41,223,727
53,281,956
48,523,132
Transfers out
(50,926,922)
(47,245,283)
(57,431,956)
(54,185,192)
Proceeds from sale
-
-
-
-
Certificates of participation issued
-
-
-
-
Premium on certificates of participation issued
-
-
-
-
Proceeds from loan issuance
1,339,000
Payment to refunded loan escrow agent
(1,339,000)
Total other financing sources (uses)
(3,051,815)
(6,021,556)
(4,150,000)
(5,662,060)
Net change in fund balances
$ (43,807,841)
$ (2,505,089)
$ 9,652,260
$ 6,830,308
Debt service as a percentage of
noncapital expenditures

15.8 %

6.9%

6.6%

7.2%
218

CITY OF NEWPORT BEACH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2017 2018 2019 2020 2021 2022
$ 162,184,218 $ 171,982,240 $ 183,455,182 $ 182,983,069 $ 188,351,057 $ 211,259,402 17,073,653 16,148,754 15,818,543 12,672,931 22,233,872 19,683,307 9,844,908 6,405,668 6,302,603 5,783,862 6,566,555 6,995,700 19,197,065 19,828,786 19,472,866 21,125,622 18,434,439 22,897,475 3,590,700 3,181,823 3,347,714 3,509,883 3,923,726 4,191,518 772,546 1,143,210 3,490,992 3,765,753 3,201,376 2,756,712 - - 2,938,136 3,477,299 (2,634,682) (8,900,762)
23,553,188 25,430,217 26,674,107 25,651,360 28,842,374 33,770,750 16,827,889 414,123 402,709 795,561 5,491,871 1,805,249
- - - - - 8,086,594
2,277,322 2,893,770 5,173,716 5,950,279 3,504,103 1,441,813 15,086,397 16,099,310 16,769,920 15,968,085 17,154,507 17,397,786 98,750,981 109,760,129 116,054,531 118,290,847 126,006,313 127,590,486 35,961,024 38,012,230 44,132,877 45,730,965 46,817,293 54,293,534 11,696,779 12,979,656 12,310,621 12,612,751 12,996,840 13,021,562 23,607,284 25,538,966 26,372,495 24,474,242 26,745,189 26,421,141 30,822,972 24,054,866 26,347,312 20,376,106 33,728,085 28,603,393 4,401,000 3,335,000 3,470,000 3,576,000 3,247,000 5,138,250 7,704,957 7,617,107 7,428,469 7,265,703 7,306,143 7,141,264 228,031,394 237,397,264 252,886,225 248,294,699 274,001,370 279,607,416 27,290,095 10,031,327 14,190,343 17,420,920 3,913,321 24,380,342 45,342,446 45,308,862 54,664,532 40,373,981 70,379,824 76,061,564 (49,390,226) (45,850,962) (59,548,532) (40,763,981) (65,965,012) (74,776,934) 995,802 -
- 7,860,000
1,373,936
(3,051,978) (542,100) (4,884,000) (390,000) 13,648,748 1,284,630 $ 24,238,117 $ 9,489,227 $ 9,306,343 $ 17,030,920 $ 17,562,069 $ 25,664,972

6.0% 5.3% 4.8% 4.8% 4.2% 4.8%
219

This page left blank intentionally.
220

REVENUE CAPACITY
This section of the City of Newport Beach's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. The statistical information presented herein is un-audited.

The following schedules present factors affecting the City's ability to generate its own revenue and its most significant local revenue source, the property tax:
• Assessed Value and Estimated Actual Value of Taxable Property • Direct and Overlapping Property Tax Rates
• Principal Property Tax Payers
• Property Tax Levies and Collections
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports and underlying accounting records for the relevant years. 221

CITY OF NEWPORT BEACH
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Secured
Fiscal Year
Ended
Total Taxable
Total Direct
June 30
Residential
Commercial
Other
Unsecured
Assessed Value
Change
Tax Rate
2013
32,522,843,119
4,627,463,458
1,435,546,888
1,597,277,039
40,183,130,504

2.73%

1.000%
2014
34,678,952,381
4,688,189,694
1,489,111,147
1,484,909,241
42,341,162,463

5.37%

1.000%
2015
36,814,891,583
5,007,508,388
1,348,136,131
1,581,520,801
44,752,056,903

5.69%

1.000%
2016
39,263,791,190
5,264,898,550
1,394,764,145
1,465,016,213
47,388,470,098

5.89%

1.000%
2017
41,834,060,284
5,539,551,197
1,398,481,252
1,569,593,832
50,341,686,565

6.23%

1.000%
2018
44,862,969,434
5,953,148,011
1,499,414,812
1,464,683,763
53,780,216,020

6.83%

1.000%
2019
48,246,937,786
6,466,645,074
1,474,416,367
1,513,162,553
57,701,161,781

7.29%

1.000%
2020
50,791,887,238
6,807,750,346
1,552,189,492
1,592,979,478
60,744,806,554

5.27%

1.000%
2021
53,636,707,086
6,979,031,018
1,428,005,141
1,645,923,436
63,689,666,681

4.85%

1.000%
2022
56,171,689,696
7,152,717,180
1,745,857,017
1,509,466,705
66,579,730,598

4.54%

1.000%
NOTE
In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1 % based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re -assessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Source: HdL, Coren & Cone
222

CITY OF NEWPORT BEACH
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
Fiscal Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
City Direct Rates:

City basic rate
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
$ 1.000
Total City Direct Rate

1.000

1.000
Overlapping Rates:

Water districts

0.081

0.047

0.032

0.047

0.047
School districts

0.165

0.170

0.182

0.183

0.173

0.176

0.161

0.173

0.186

0.170
Total Overlapping Rate

0.246

0.251

0.229

0.230

0.220

0.223

0.208

0.205

0.233

0.218
Total Direct & Overlapping Rate
$ 1.246
$ 1.251
$ 1.229
$ 1.230
$ 1.220
$ 1.223
$ 1.208
$ 1.205
$ 1.233
$ 1.218
NOTE:

In 1978, California voters passed Proposition 13 which sets the property tax rate at
a 1.00% fixed amount.

This 1.00% is shared
by all taxing
agencies
for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of other debt obligations.

Source: HdL, Coren & Cone
223

Taxpayer
The Irvine Company
PH Finance LLC
Villas at Fashion Island LLC
Newport Center Hotel LLC
HG Newport Owner LLC
520 Newport Center Drive LLC
Newport Bluffs LLC
650 Newport Center Drive LLC
Balboa Bay Club Ventures LLC
UDR Newport Beach North LP
Source: HdL, Coren & Cone

CITY OF NEWPORT BEACH
Principal Property Taxpayers
Current Year and Nine Years Ago
2022
Percent of Total
Taxable Assessed City Taxable
Value Rank Assessed Value
$ 1,072,734,925 1
307,974,740 2
274,564,806 3
192,183,454 4
185,533,013 5
183,139,132 6
166,672,966 7
165,892,355 8
151,560,719 9
142,299,455 10
$ 2,842,555,565

1.68% $ 1,737,812,513

0.48% N/A

0.43% N/A

0.30% N/A

0.29% N/A

0.26% 141,631,126

0.26% N/A

0.24% 105,398,594

0.22% 122,475,352

4.45% $ 2,107,317,585
2013
Percent of Total
Taxable Assessed City Taxable
Value Rank Assessed Value
1 4.32%
- 0.00%

0.00%

0.00%
- 0.00%
2 0.35%
- 0.00%
8 0.26%
3 0.30%
224

CITY OF NEWPORT BEACH
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Year of Levy
Total Collections
to Date
Fiscal Year
Collections in
Ended
Taxes Levied for
Percent of
Subsequent
Percent of
June 30
the Fiscal Year
Amount'
Levy
Years 2
Amount
Levy
2013
74,165,333
72,532,734

97.80%
736,983
73,269,717

98.79%
2014
79,195,727
77,758,504

98.19%
650,273
78,408,777

99.01%
2015
83,843,488
82,191,604

98.03%
642,292
82,833,896

98.80%
2016
84,166,940
81,762,526

97.14%
612,863
82,375,389

97.87%
2017
86,264,321
84,019,053

97.40%
574,124
84,593,177

98.06%
2018
92,139,181
90,279,099

97.98%
581,969
90,861,068

98.61%
2019
98,471,700
96,356,203

97.85%
646,203
97,002,406

98.51%
2020
102,636,451
100,701,002

98.11%
886,688
101,587,690

98.98%
2021
107,647,017
105,781,072

98.27%
862,772
106,643,844

99.07%
2022
113,318,692
110,354,271

97.38%
- 3
110,354,271

97.38%
Net collections reflect deductions for refunds and impoundments. 2 Exclusive of penalty charges.
3 The total amount of Fiscal Year 2022 delinquent taxes collected in subsequent years was not available as of the date the information was collected for the City's Annual Comprehensive Financial Report.

Source: Orange County Auditor Controller's Office
225

This page left blank intentionally.
226

DEBT CAPACITY
This section of the City of Newport Beach's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. The statistical information presented herein is un-audited.

The following schedules exhibit the City's levels of outstanding debt over time, to help readers assess the affordability of the current level of outstanding debt, and the City's ability to issue additional debt:
• Ratios of Outstanding Debt by Type
• Ratios of General Bonded Debt Outstanding
• Direct and Overlapping Debt
• Legal Debt Margin Information
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports and underlying accounting records for the relevant years. 227

This page left blank intentionally.
228

CITY OF NEWPORT BEACH
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal
Year
Ended
June 30
Certificates of
Participation 1
Governmental Activities
Pre-
Annexation
Agreement CDBG Loan
Business -type Activities
Total
Governmental Total Business -type
Activities Activities
Total Primary
Government
Percentage of
Personal
Income 2
Debt Per
Capita 2
2013
123,073,871
4,800,000
1,578,000
129,451,871
129,451,871

1.85%
1,498
2014
120,178,318
3,600,000
1,462,000
125,240,318
125,240,318

1.81%
1,442
2015
117,197,765
2,400,000
1,339,000
120,936,765
120,936,765

1.77%
1,386
2016
114,137,212
1,200,000
1,207,000
116,544,212
116,544,212

1.77%
1,383
2017
110,956,659
-
1,066,000
112,022,659
112,022,659

1.66%
1,319
2018
107,651,106
916,000
108,567,106
108,567,106

1.48%
1,245
2019
104,220,553
756,000
104,976,553
104,976,553

1.36%
1,204
2020
100,695,000
585,000
101,280,000
101,280,000

1.24%
1,181
2021
106,781,026
403,000
107,184,026
107,184,026

1.31%
1,248
2022
102,698,895
208,000
102,906,895
102,906,895

1.17%
1,229
Note: This schedule excludes claims and judgments, employee compensated absence, pension, OPEB, GASB 87 lessee leases, and Early Retirement Incentive Plan liabilities. Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 Amounts include any applicable bond premium.
2 These ratios are calculated using personal income and population for the prior calendar year. 229

Fiscal Year
Ended
June 30
Certificates of
Participation'
2013
123,073,871
2014
120,178,318
2015
117,197,765
2016
114,137,212
2017
110,956,659
2018
107, 651,106
2019
104,220,553
2020
100,695,000
2021
106,781,026
2022
102,698,895

CITY OF NEWPORT BEACH
Ratios of General Bonded Debt
Last Ten Fiscal Years
Amounts
Restricted for
Debt Service Total
(1,157,250)
(2,352,746)
(2,350,210)
(2,362,904)
(2,364,034)
(2,384,338)
(2,362,228)
(1,159,389)
(2,255,795)
(2,199,363)
121,916,621
117,825,572
114,847,555
111,774,308
108,592,625
105,266,768
101,858,325
99,535,611
104,525,231
100,499,532
Percent of
Assessed
Value

0.30%

0.28%

0.26%

0.24%

0.22%

0.20%

0.18%

0.16%

0.15%
General
Bonded Debt
Per Capita
1,410
1,356
1,316
1,326
1,279
1,207
1,168
1,160
1,217
1,200
' Amounts include any applicable bond premium.
2 Assessed value was used because the actual value of taxable property is not readily available in the State of California.
230

CITY OF NEWPORT BEACH
Direct and Overlapping Debt
June 30, 2022
City Net Assessed Valuation:

OVERLAPPING DEBT:

Metropolitan Water District
Coast Community College District
Rancho Santiago Community College District
Rancho Santiago Community College District School Facilities Improvement District No. 1 Laguna Beach Unified School District
Laguna Beach Unified School District Community Facilities District No. 98-1 Newport Mesa Unified School District
Santa Ana Unified School District
Irvine Ranch Water District Improvement Districts
Bonita Canyon Public Facilities Financing Authority Community Facilities District No. 98-1 California Statewide Community Development Authority Community Facilities District No. 2018- 3 City of Newport Beach 1915 Act Bonds
Orange County Newport Coast Assessment District No. 01-1 Orange County Newport Coast Reassessment District No. 17-1 R Orange County General Fund Obligations
Orange County Pension Obligation Bonds
Orange County Board of Education General Fund Obligations Coast Community College District General Fund Obligations Coast Community College District Pension Obligation Bonds Santa Ana Unified School District General Fund Obligations Overlapping Tax Increment Debt (Successor Agencies):

TOTAL OVERLAPPING DEBT
DIRECT DEBT:

City of Newport Beach Certificates of Participation
Community Development Block Grant Loan

TOTAL DIRECT DEBT

TOTAL DIRECT AND OVERLAPPING DEBT
GROSS COMBINED TOTAL DEBT t21
$ 66,579, 330,598
Percentage
Outstanding Debt
Estimated Share of
Applicable Ill
6/30/22
Overlapping Debt

1.962%
$ 20,175,000
$ 395,834

34.846%
945,799,424
329,573,267

2.749%
196,772,727
5,409,282

5.163%
154,720,000
7,988,194

15.169%
14,035,000
2,128,969
100.000%
7,135,000
7,135,000

73.639%
232,782,838
171,418,954

6.372%
339,341,119
21,622,816

2.800%-
424,004,508
48,145,816
100.000%
100.000%
18,675,000
18,675,000
100.000%
8,270,000
8,270,000
100.000%
13,349,868
13,349,868
100.000%
3,623,000
3,623,000
100.000%
22,170,000
22,170,000

9.769%
376,780,000
36,807,638

9.769%
521,784,000
50,973,079

9.769%
11,620,000
1,135,158

34.846%
1,865,000
649,878

34.846%
1,825,000
635,940

6.372%
50,389,370
3,210,811

3.728% -
4,660,000
3,027,734

77.475%
$ 3,369,776,854
$ 756,346,238
100.000%
$ 102,698,895
$ 102,698,895
100.000%
208,000
208,000
$ 102,906,895
$ 102,906,895
$ 859,253,133
$ 859,253,133
1 The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 2 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease obligations.

Ratios to 2021-22 Net Assessed Valuation:

Total Overlapping Debt 1.14%
Total Direct Debt ($102,906,895) 0.15%
Gross Combined Total Debt 1.29%
Ratios to Redevelopment Incremental Valuation f$1.443.778.605):

Total Overlapping Tax Increment Debt 0.21 %
Source: California Municipal Statistics, Inc.
231

Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:

General obligation bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit

CITY OF NEWPORT BEACH
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2013 2014 2015 2016
25% 25% 25% 25%
10,045,782,626 10,585,290,616 11,188,014,226 11,847,117,525 15% 15% 15% 15%
1,506,867,394 1,587, 793,592 1,678,202,134 1,777,067,629 $ 1,506,867,394 $ 1,587,793,592 $ 1,678,202,134 $ 1,777,067,629

0.0% 0.0% 0.0% 0.0%
NOTE:

The State of California Government Code Section 43605 provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Source: City Finance Department
232

CITY OF NEWPORT BEACH
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2017 2018 2019 2020 2021 2022
, w w I,' w 1 u I w -r „-r w- v- u I w
25% 25% 25% 25% 25% 25%
12,585,421,641 13,445,054,005 14,425,290,445 15,186,201,639 15,922,416,670 16,644,932,650 15% 15% 15% 15% 15% 15%
1,887,813,246 2,016,758,101 2,163,793,567 2,277,930,246 2,388,362,501 2,496,739,897 $ 1,887,813,246 $ 2,016,758,101 $ 2,163,793,567 $ 2,277,930,246 $ 2,388,362,501 $ 2,496,739,897

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
233

This page left blank intentionally.
234

DEMOGRAPHIC AND ECONOMIC INFORMATION
This section of the City of Newport Beach's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. The statistical information presented herein is un-audited.

The following schedules depict demographic and economic indicators to assist the reader in understanding the socio-economic environment in which the City's financial activities take place:

Demographic and Economic Statistics
Principal Employers
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports and underlying accounting records for the relevant years. 235

CITY OF NEWPORT BEACH
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal Income
Per Capita
Unemployment
Fiscal Year
Population'
(in thousands)
Income (2)
Rate2(3)
2013
86,436
6,995,784
80,936

4.2%
2014
86,874
6,926,725
79,733

3.6%
2015
87,249
6,848,523
78,494

4.0%
2016
84,270
6,574,071
78,012

3.4%
2017
84,915
6,736,392
79,331

3.1 %
2018
87,182
7,334,970
84,134

2.9%
2019
87,180
7,704,445
88,374

2.6%
2020
85,780
8,183,755
95,404

4.6%
2021
85,865
8,175,464
95,213 (4)

6.0%
2022
83,727
8,791,502
105,002 (4)

3.0%
Population estimates are as of January 1 of the year shown and do not reflect revised estimates made available after the date the information was collected for the City's Annual Comprehensive Financial Report.
2 Unemployment rate represents an average of all monthly unemployment rates within a fiscal year.

Sources:
(') California State Department of Finance, E-4 Population Estimates for Cities, Counties and State 2008-2010; and, E-1 Population Estimates for Cities, Counties and State January 1, 2015 - 2021.
(2) U.S. Census Bureau - American Community Survey 1-Year Estimates (3) State of California, Employment Development Department (4) HdL, Coren & Cone
236

CITY OF NEWPORT BEACH
Principal Employers'
Current Year and 9 years ago
2022
2013
Number of
Percent of Total
Number of
Percent of Total
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Hoag Memorial Hospital
5,292
1 6.43%
4,944
1 5.97%
PIMCO
1,251
2 1.52%
1,172
2 1.42%
Pacific Life Insurance
1,194
3 1.45%
1,030
4 1.26%
Glidewell Dental
1,091
4 1.33%
1,066
3 1.29%
Irvine Management Company
1,006
5 1.22%
N/A 2
-
N/A
Tower Semiconductor
871
6 1.06%
643
8 0.79%
Newport -Mesa Unified School District
752
7 0.91 %
751
7 0.92%
City of Newport Beach
730
8 0.89%
752
6 0.92%
Balboa Bay Club and Resort
692
9 0.84%
473
10 0.58%
Resort at Pelican Hill
570
10 0.69%
900
5 1.10%
CBRE Inc.
387
11 0.47%
N/A 2
-
N/A
Fletcher Jones Motor Cars Inc.
326
12 0.40%
500
9 0.61 %
' Figures reflect number of employees of employer at the time the information was collected. 2 Company listed was unable to provide employee data for 2013.

Source: Data obtained from companies listed and compiled by City Finance Department. 237

This page left blank intentionally.
238

OPERATING INFORMATION
This section of the City of Newport Beach's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. The statistical information presented herein is un-audited.

The following schedules present information on the City's operations and resources including service and infrastructure data to facilitate the readers' understanding of how financial statement information relates to the services the City provides and the activities it performs:
• Full Time City Employees by Functions
• Operating Indicators by Function
• Capital Asset Statistics by Function
• Water Sold by Customer Type
• Utility Rates
• Major Water Customers
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports and underlying accounting records for the relevant years. 239

This page left blank intentionally.
240

CITY OF NEWPORT BEACH
Full-time City Employees by Function
Last Ten Fiscal Years
Fiscal Year
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General government
94 79
78 77
77 79
80 78
80 81
Public safety
357
366
370
374
371
372
375
375
376
376
Community development
56 53
52 52
52 53
53 53
52 53
Public works
128
119
109
104
99 98
96 99
98 98
Community services
70 74
75 79
81 79
78 78
78 78
Water
32 32
31 32
31 33
33 33
33 33
Wastewater
15 13
13 12
13 11
11 11
11 11
Total
752
736
728
730
724
725
726
727
728
730
Source: City Finance Department
241

CITY OF NEWPORT BEACH
Operating Indicators by Function
Last Ten Fiscal Years
Police:

Adult Arrests
Parking Citations Issued
Fire:

Fire Responses
Fire Inspections
General Services:

Street Patching (tons of mix)
Sidewalk Repair (square feet)
Recreation & Senior Services:

Co -Sponsored Youth Organization Attendance
Senior Transportation Services
Water:

New Connections
Average Daily Consumption (hundred cubic feet)
Sewer:

New Connections
Miles of Pipe Cleaned
Library Services:

Library Circulation of Materials
Fiscal Year
2013
2014
2015
2016
3,161
2,794
3,472
3,158
58,823
51,609
59,753
64,762
342
356
305
300
4,338
3,352
1,281
1,201
1,708
2,408
2,711
1,890
37,607
37,607
27,175
27,000
293,938
294,000
303,152
305,000
13,112
13,956
13,740
14,000
54 72
187
194

14.02 15.96

16.39 11.66
14 22
20 17
215
245
260
250
1,582,914 1,689,870 1,610,818 1,575,000
Data varies with trend due to inclusion of responses to fires, hazardous materials, medical and other emergencies. 2 Data varies with trend due to COVID-19 restrictions in 2021. 3 Data varies with trend due to COVID-19 restrictions being lifted in 2022.

Source: City of Newport Beach
242

CITY OF NEWPORT BEACH
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
2017
2018
2019
2020
2021
2022
3,178
3,266
3,520
3,093
2,872
2,650
69,246
56,685
67,048
73,372
86,439
83,307
247
248
209
11,913 '
12,204
13,251
1,216
1,307
1,033
2,842
475
2 3,015 3
1,439
1,403
1,402
913
920
901
20,490
22,925
14,840
11,729
7,805
13,590
425,000
437,751
469,959
439,954
455,442
392,605
13,500
13,071
13,386
9,300
6,287
8,805
229
210
210
256
160
252

13.80 14.07

13.75 13.44

14.87 14.28
41 137
46 10
25 3
202
211
196
221
240
209
1,464,640
1,424,594
1,376,041
1,084,206
1,043,629
1,195,151
243

CITY OF NEWPORT BEACH
Capital Asset Statistics by Function
Last Ten Fiscal Years
Police:

Stations
Fire:

Fire Stations
Lifeguard Headquarters
Public works:

Streets (miles)
Streetlights
Traffic Signals
Recreation & Senior Services:

Parks
Community Centers (includes leased property)
Aquatic Center
Water:

Water Mains (miles)
Maximum Daily Capacity (thousands of gallons)
Wastewater:

Sanitary Sewers (miles)
Storm Sewers (miles)
Library Services:

Libraries
Source: City of Newport Beach
Fiscal Year
2013
2014
2015
2016
1 1
1 1
8 8
8 8
1 1
1 1
395
395
395
399
5,977
5,977
5,977
5,978
808
808
808
808
64 64
64 64
14 14
14 15
1 1
1 1
303.25
298.37
299.58
299.77
26,916
27,704
27,800
27,800
202.40
202.62
202.64
202.75

95.40 70.62

94.14 92.08
4 4 4 4
244

CITY OF NEWPORT BEACH
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2017
2018
2019
2020
2021
2022
1 1
1 1
1 1
8 8
8 8
8 8
1 1
1 1
1 1
400
400
400
400
400
400
5,978
5,978
5,971
5,972
5,973
5,974
808
808
808
808
808
808
64 64
65 65
65 66
15 15
15 15
15 14
1 1
1 1
1 1
300.64
300.30
300.88
300.82
301.23
301.13
27,800
27,800
27,800
27,800
27,800
27,800
202.72
203.56
203.99
204.10
204.13
204.30

94.74 95.12

95.35 95.89

96.18 97.37
4 4 4 4 4 4
245

CITY OF NEWPORT BEACH
Water Sold by Type of Customer
Last Ten Fiscal Years
(in hundred cubic feet)
Fiscal Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Type of Customer:

Residential
3,890,973
3,902,007
3,853,566
3,072,589
3,564,203
3,603,927
3,439,655
3,747,408
3,811,231
3,714,134
Commercial
2,389,822
2,525,169
2,560,620
1,847,372
2,142,952
2,201,254
2,075,812
2,081,860
2,231,809
2,078,199
Government
394,787
455,251
396,605
263,116
305,214
289,738
256,398
270,638
299,442
314,128
Total
6,675,582
6,882,427
6,810,791
5,183,077
6,012,369
6,094,919
5, 771,865
6,099,906
6,342,482
6, 006,461
Total direct rate
per 100 cubic ft.
$ 2.96
$ 3.08
$ 3.08
$ 3.08
$ 3.08
$ 3.08
$ 3.08
$ 3.11 ' $

3.35 2 $

3.60 3
Reflects increase in commodity rate effective January 1, 2020 2 Reflects increase in commodity rate effective January 1, 2021 3 Reflects increase in commodity rate effective January 1, 2022 Source: City Utilities Department
246

CITY OF NEWPORT BEACH
Utility Rates'
Last Ten Fiscal Years
Fiscal Year
Ended June
Monthly
Rate per
30 Base Rate
100 cubic ft
2013

21.13 3.31
2014

21.77 3.43
2015

21.77 3.43
2016

21.77 3.43
2017

21.77 3.43
2018

23.73 3.46
2019

24.34 3.50
2020

28.09 3.57
2021

30.25 3.85
2022

32.03 4.14
Rates are based on 5/8" or 3/4" meter,
which are the standard household meter
sizes. Rates include sewer service. The
City charges an excess -use rate above
normal demand.

Source: City Revenue Division
247

CITY OF NEWPORT BEACH
Major Water Customers
Current Year and Nine Years Ago
2022
2013
Percent of Total
Percent of Total
Water Customer
Water Charges
Rank
Water Revenues
Water Charges
Rank
Water Revenues
Irvine Company Apartment
$ 673,101
1 2.14%
$ 166,764
2 0.62%
Irvine Company Office
550,471
2 1.75%
150,363
3 0.56%
Big Canyon Country Club
357,763
3 1.14%
172,200
1 0.64%
Hoag Memorial Hospital
347,678
4 1.11 %
126,806
5 0.47%
Newport Beach Country Club
320,844
5 1.02%
131,122
4 0.49%
Bluffs Homeowners Association
303,362
6 0.96%
95,584
6 0.36%
UDR Newport Beach
247,906
7 0.79%
85,208
8 0.32%
Irvine Company Retail
244,315
8 0.78%
53,748
11 0.20%
Park Newport Ltd
243,336
9 0.77%
85,111
9 0.32%
Newport -Mesa Unified School District
243,240
10 0.77%
87,615
7 0.33%
Pacific View - Pierce Bros.
195,317
11 0.62%
55,009
10 0.21 %
Jasmine Creek Community Association
141,938
12 0.45%
39,450
15 0.15%
Newport Dunes Resort
133,480
13 0.42%
46,136
12 0.17%
North Bluff Bay View
128,213
14 0.41%
31,550
20 0.12%
One Ford Road Community Association
125,576
15 0.40%
29,363
22 0.11 %
$ 4,256,540

13.53%
$ 1,356,029

5.07%
Source: City Revenue Division
248

/,EW PO\
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
(949) 644-3123
www.newportbeachca.gov/acfr

ATTACHMENT B

AUDITOR'S REQUIRED COMMUNICATIONS WITH THE AUDIT COMMITTEE 14-5

*I DavisFarr

CERTIFIED PUBLIC ACCOUNTANTS
Davis Farr LLP
18201 Von Karman Avenue I Suite 1100 1 Irvine, CA 92612 Main: 949.474.2020 1 Fax: 949.263.5520

REQUIRED AUDIT COMMUNICATIONS
The Honorable Mayor and
Members of the City Council
City of Newport Beach
Newport Beach, California
We have audited the financial statements of the City of Newport Beach (City) as of and for the year ended June 30, 2022, and have issued our report thereon dated February 6, 2023.

Professional standards require that we advise you of the following matters during our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated October 20, 2022, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence.

We identified self -review threats to independence as a result of non -attest services provided.

Those non -attest services included recording journal entries detected during the audit process, assisting in updating infrastructure records and assisting in preparation of the State 14-6

The Honorable Mayor and
Members of the City Council
City of Newport Beach
Newport Beach, California
Controller's Report. To mitigate the risk, management has reviewed proposed journal entries to supporting documentation and posted the journal entries to the accounting records.

Additionally, management has reviewed the updates to infrastructure records and compared amounts to underlying supporting documentation. Furthermore, management has reviewed the State Controller's Report and agreed the amounts to its accounting records.

Significant Risks Identified
We have identified the following significant risks:

Implementation of the new lease accounting standard. We reviewed the City's inventory of leases and selected a sample of lease agreements to test the calculations of the lease transactions. We ensured the City's lease disclosure footnotes were accurate and complete in accordance with the new standard.

Capital asset additions related to construction in progress. We reviewed the City's detailed additions to construction in progress and selected a sample of additions for propriety and proper classification.

Compliance with Federal Grant Requirements. We reviewed the City's schedule of federal expenses and selected major programs to test for compliance with federal grant requirements. This work is ongoing as the Single Audit Report will be issued at a later date.

Qualitative Aspects of the City's Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Notes 1 and 18 to the financial statements, the City changed accounting policies related to leases by adopting Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements are:
• Management's estimate involving the calculation of the pension liability. • Management's estimate involving the calculation of the other post -employment benefit (OPEB) liability.
2 14-7

The Honorable Mayor and
Members of the City Council
City of Newport Beach
Newport Beach, California
• Management's estimates of the claims payable liabilities related to general liability and workers' compensation claims.

Management's estimate of the pension liability, OPEB liability and claims payable liabilities are based on actuarial valuation reports. We evaluated the key factors and assumptions used to develop the pension liability, OPEB liability and claims payable liabilities and determined they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City's financial statements relate to:
• The disclosures related pensions in Note 10 to the basic financial statements. • The disclosures related to OPEB liability in Note 11 to the basic financial statements.

The financial statement disclosures are neutral, consistent, and clear.

Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit. There were no significant unusual transactions identified as a result of our audit procedures.

Significant Difficulties Encountered During the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. We did not identify any uncorrected financial statement misstatements.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. We did not identify any misstatements as a result of our audit procedures.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's financial statements or the auditor's report. No such disagreements arose during the course of the audit. 3 14-8

The Honorable Mayor and
Members of the City Council
City of Newport Beach
Newport Beach, California
Representations Requested from Management
We have requested and received certain written representations from management in a letter dated February 6, 2023.

Management Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditors.

Other Information Included in the Annual Comprehensive Financial Report Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City's annual report, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the information and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Irvine, California
February 6, 2023
Gd
14-9

ATTACHMENT C

AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS
14-10

*I DavisFarr

CERTIFIED PUBLIC ACCOUNTANTS
Davis Farr LLP
18201 Von Karmen Avenue I Suite 1100 1 Irvine, CA 92612 Main: 949.474.2020 1 Fax: 949.263.5520
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Mayor and
Members of the City Council
City of Newport Beach
Newport Beach, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City of Newport Beach ("City"), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated February 6, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 14-11

The Honorable Mayor and
Members of the City Council
City of Newport Beach
Newport Beach, California
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Irvine, California
February 6, 2023
2 14-12

Newport Beach City CouncilFebruary 28, 2023

Newport Beach City Council
February 28, 2023