16 - Financial Statement Audit Results and Related Communication for the Fiscal Year Ended June 30, 2023 — Newport Beach City Council, January 23, 2024 (part 2 of 2)

Actuarially determined contribution
Contributions in relation to the actuarially determined contributions
Contribution deficiency (excess)
Covered Payroll
Contributions as a percentage of covered payroll
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial cost method
Amortization method
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
Schedule of Contributions
Last Ten Fiscal Years*
2023 2022 2021 2020 2019
$ 15,250,219 $ 14,432,250 $ 14,600,178 $ 13,080,630 $ 12,374,026 (20,794,397) (18,372,473) (18,730,840) (16,351,592) (15,713,898) $ (5,544,178) $ (3,940,223) $ (4,130,662) $ (3,270,962) $ (3,339,872) $ 48,099,822 $ 45,210,057 $ 44,809,856 $ 43,902,594 $ 42,153,383

43.23%

40.64%

41.80%

37.25%

37.28%
6/30/2020
6/30/2019
6/30/2018
6/30/2017
6/30/2016
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

2.50%

2.63%

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

7.00% (3)

7.25% (3)

7.375% (3)
(4)
(4)
(4)
(4)
(4)
(5)
(5)
(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 nine years are shown. 144 16-153

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2023
Defined Benefit Plan for Miscellaneous Employees

Page 2 of 2 ends

Schedule of Contributions
Last Ten Fiscal Years*
Actuarially determined contribution
Contributions in relation to the actuarially determined contributions
Contribution deficiency (excess)
Covered Payroll
Contributions as a percentage of covered payroll
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial cost method
Amortization method
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
2018 2017 2016 2015
$ 11,924,053 $ 10,412,963 $ 9,943,342 $ 7,117,065
(15,742,587) (10,412,963) (9,943,342) (7,117,065)
$ (3,818,534) $ - $ - $
$ 41,468,634 $41,727,563 $40,031,404 $38,512,011

37.96% 24.95% 24.84% 18.48%
6/30/2015
6/30/2014
6/30/2013
6/30/2012
Entry age
Entry age
Entry age
Entry age
(1)
(1)
(1)
(1)
Market Value
Market Value
Market Value
15 Year

2.75%

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

7.5% (3)

7.5% (3)
(4)
(4)
(4)
(4)
(5)
(5)
(5)
(5)
145 16-154

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2023
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*
2023
2022
2021
2020
2019
Measurement period
June 30, 2022
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
Total Pension Liability:

Service cost
$ 10,918,046
$ 9,817,913
$ 9,622,985
$ 9,292,715
$ 9,223,465
Interest on total pension liability
43,860,290
42,760,906
41,449,511
40,081,524
38,458,387
Differences between expected and actual experience
(3,451,985)
196,690
957,686
4,798,077
3,278,018
Changes in assumptions
22,634,816
-
-
-
(1,630,045)
Changes in benefits
Benefit payments, including refunds of employee contributions (35,654,758) (33,765,218) (32,285,653) (30,443,097) (29,183,598) Net Change in Total Pension Liability
38,306,409 19,010,291
19,744,529
23,729,219
20,146,227
Total Pension Liability - Beginning
628,841,903 609,831,612
590,087,083
566,357,864
546,211,637
Total Pension Liability - Ending (a)
667,148,312 628,841,903
609,831,612
590,087,083
566,357,864
Plan Fiduciary Net Position:

Contributions - employer
32,394,203 32,367,091
28,539,301
28,344,445
26,779,897
Contributions -employee
3,417,660 3,347,740
3,249,005
3,162,044
3,104,318
Net investment income
(38,537,209) 93,813,435
19,685,354
24,254,890
29,064,749
Administrative expense
(317,056) (413,178)
(556,832)
(263,991)
(532,480)
Plan to plan resource movement
(1,570)
(855)
Benefit payments
(35,654,758) (33,765,218)
(32,285,653)
(30,443,097)
(29,183,598)
Other miscellaneousincomel(expense)
-
-
855
(1,011,188)
Net Change in Plan Fiduciary Net Position
(38,697,160) 95,349,870
18,631,175
25,053,576
28,220,843
Plan Fiduciary Net Position - Beginning
508,966,420 413,616,550
394,985,375
369,931,799
341,710,956
Plan Fiduciary Net Position - Ending (b)
470,269,260 508,966,420
413,616,550
394,985,375
369,931,799
Net Pension Liability- Ending (a)-(b)
$ 196,879,052 $ 119,875,483
$196,215,062
$195,101,708
$196,426,065
Plan fiduciary net position as a percentage of the total pension liability

70.49% 80.94%

67.82%

66.94%

65.32%
Covered payroll
$ 35,231,003 $ 34,863,204
$ 34,279,062
$ 33,935,043
$ 32,866,620
Net pension liability as percentage of covered payroll
558.82% 343.85%
572.40%
574.93%
597.65%
Notes to Schedule:
* Fiscal year 2015 was the first year of implementation, therefore only nine 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.

Changes in Assumptions:

Effective with the 2022 measurement date, the discount rate was reduced from 7.15% to 6.90%.. None in 2019 through 2021. In 2018,
demographic
assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and Review Assumptions December 2017.

There were no
changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.50% percent (net of administrative expense) to 7.65%
(without a reduction
for pension plan
administrative expense). In 2014, amounts reported were based on the 7.50% discount rate.
146 16-155

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2023
Last 10 Years *
Defined Benefit Plan for Safety Employees

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SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Last Ten Fiscal Years*
2018 2017 2016 2015
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
Benefit payments
Net plan to plan resource movement
Other miscellaneous expense
Administrative expense
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net Pension Liability - Ending (a)-(b)
Plan fiduciary net position as a percentage of the total pension liability Covered payroll
Net pension liability as percentage of covered payroll
June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 $ 9,015,985 $ 8,075,553 $ 8,077,826 $ 8,091,585
37,083,966 36,239,226 35,098,055 33,807,462
(2,192,667) (1,613,985) (316,827) -
30,110,384 (8,359,009)
(28,074,414) (27,447,982) (25,838,982) (24,529,802)
45,943,254 15,252,812 8,661,063 17,369,245
500,268,383 485,015,571 476,354,508 458,985,263
546,211,637 500,268,383 485,015,571 476,354,508
19,260,537 18,496,776 21,529,513 12,089,637
2,967,318 2,826,831 2,969,503 3,122,237
34,814,011 1,561,480 7,049,577 47,151,493
(462,427) (193,780) (357,866) -
2,387
(28,074,414) (27,447,982) (25,838,982) (24,529,802)
28,505,025 (4,754,288) 5,351,745 37,833,565
313,205,931 317,960,219 312,608,474 274,774,909
341,710,956 313,205,931 317,960,219 312,608,474
$ 204,500,681 $ 187,062,452 $ 167,055,352 $ 163,746,034

62.56% 62.61% 65.56% 65.63%
$ 32,450,020 $ 30,816,246 $ 30,189,633 $ 29,944,665
630.20% 607.03% 553.35% 546.83%
147 16-156

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2023
Last 10 Years *
Defined Benefit Plan for Safety Employees

Page 1 of 2 ends

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years*
2023 2022 2021 2020 2019
Actuarially determined contribution $ 25,952,201 $25,115,878 $25,341,788 $22,980,289 $22,227,698 Contributions in relation to the actuarially
determined contributions (35,283,235) (32,317,538) (32,251,903) (28,531,744) (28,346,069) Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial cost method
Amortization method
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
$ (9,331,034) $ (7,201,660) $ (6,910,115) $ (5,551,455) $ (6,118,371) $ 36,538,774 $ 35,231,003 $ 34,863,204 $ 34,279,062 $ 33,935,043

96.56%

91.73%

92.51 %

83.23%

83.53%
6/30/2020
6/30/2019
6/30/2018
6/30/2017
6/30/2016
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

2.50%

2.63%

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

7.00% (3)

7.25% (3)

7.375% (3)
(4)
(4)
(4)
(4)
(4)
(5)
(5)
(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 nine years are shown. 148 16-157

CITY OF NEWPORT BEACH
an Agent Multiple -Employer Defined Benefit Pension Plan As of June 30, 2023
Last 10 Years *
Defined Benefit Plan for Safety Employees

Page 2 of 2 ends

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years*
2018 2017 2016 2015
Actuarially determined contribution
Contributions in relation to the actuarially
determined contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial cost method
Amortization method
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
$21,524,636 $19,338,360 $18,466,207 $13,393,374
(26,620,697) (19,338,360) (18,466,207) (20,993,374)
$ (5,096,061) $ - $ - $ (7,600,000)
32,866,620 32,450,020 30,816,246 30,189,633

81.00% 59.59% 59.92% 69.54%
6/30/2015
6/30/2014
6/30/2013
6/30/2012
Entry age
Entry age
Entry age
Entry age
(1)
(1)
(1)
(1)
Market Value
Market Value
Market Value
15 Year

2.75%

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

7.5% (3)

7.5% (3)
(4)
(4)
(4)
(4)
(5)
(5)
(5)
(5)
149 16-158

CITY OF NEWPORT BEACH
Post -Employment Health Care Benefits (OPEB) Retirement Plan As of June 30, 2023
Last 10 Years

Page 1 of 2 ends

SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years *
Measurement date
Total OPEB Liability:

Service cost
Interest
Differences between expected and actual experience
Changes of assumptions
Changes in benefits terms
Benefit payments, including refunds of member contributions Net Change in Total OPEB Liability
Total OPEB Liability - Beginning
Total OPEB Liability - Ending (a)
Plan Fiduciary Net Position:

Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of member contributions Administrative expense
Other expense
June 30, 2022 June 30, 2021 June 30, 2020
$ 530,843 $ 529,600 $ 521,285
3,237,390 2,909,400 2,944,050
1,120,534 6,159,865 (219,772)
2,473,450 (302,512)
(4,731,846) (3,786,232) (3,787,663)
2,630,371 5,510,121 (542,100)
51,603,833 46,093,712 46,635,812
54,234,204 51,603,833 46,093,712
6,185,537
5,785,342
4,674,814
(4,845,154)
7,184,241
900,087
(4,731,846)
(3,786,232)
(3,787,663)
(9,000)
(9,908)
(12,037)
Net Change in Plan Fiduciary Net Position
(3,400,463)
9,173,443
1,775,201
Plan Fiduciary Net Position - Beginning
34,969,715
25,796,272
24,021,071
Plan Fiduciary Net Position - Ending (b)
31,569,252
34,969,715
25,796,272
City's Net OPEB Liability - Ending (a)-(b) $
22,664,952
$ 16,634,118 $
20,297,440
Plan fiduciary net position as a percentage of the total OPEB liability

58.21 %

67.77%

55.96%
Covered - employee payroll(') $
79,636,594
$ 78,621,426 $
77,637,171
City's Net OPEB liability as percentage of covered -employee payroll 28.46% 21.16% 26.14% 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 six years are shown. 150 16-159

CITY OF NEWPORT BEACH
Post -Employment Health Care Benefits (OPEB) Retirement Plan As of June 30, 2023
Last 10 Years

Page 2 of 2 ends

SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years "
Measurement date
Total OPEB Liability:

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)
Plan fiduciary net position as a percentage of the total OPEB liability Covered - employee payroll(')
City's Net OPEB liability as percentage of covered -employee payroll June 30, 2019 June 30, 2018 June 30, 2017
$ 524,717 $ 509,434 $ 478,341
2,795,490 2,814,685 2,830,153
2,532,319 - -
114,311
(3,627,695) (3,641,715) (3,513,406)
2,339,142 (317,596) (204,912)
44,296,670 44,614,266 44,819,178
46,635,812 44,296,670 44,614,266
4,460,937
4,675,193
4,594,772
1,495,861
1,605,114
1,875,536
(3,627,695)
(3,641,715)
(3,513,406:
(4,980)
(11,076)
(9,452:
-
(25,258)
-
2,324,123
2,602,258
2,947,450
21, 696, 948
19, 094, 690
16,147, 240
24,021,071 21,696,948 19,094,690
$ 22,614,741 $ 22,599,722 $ 25,519,576

51.51 % 48.98% 42.80%
$ 75,814,626 $ 73,999,059 $ 74,484,613

29.83% 30.54% 34.26%
151
16-160

CITY OF NEWPORT BEACH
Post -Employment Health Care Benefits (OPEB) Retirement Plan As of June 30, 2023
Last 10 Years`

SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years*
Actuarially determined contribution
Contributions in relation to the actuarially determined contributions
Contribution deficiency (excess)
Covered - employee payroll
Contributions as a percentage of covered -employee payroll Notes to Schedule:

Valuation Date
2023 2022 2021 2020 2019 2018
$ 4,359,593 $ 4,124,923 $ 4,108,719 $ 3,834,916 $ 3,827,337 $ 3,925,087 (7,154,265) (4,950,445) (6,511,545) (5,379,799) (5,133,062) (5,309,626) $ (2,794,672) $ (825,522) $ (2,402,826) $ (1,544,883) $ (1,305,725) $ (1,384,539) $ 81,451,477 $ 79,636,594 $ 78,621,426 $ 77,637,171 $ 75,814,626 $ 73,999,059 -8.78% -6.22% -8.28% -6.93% -6.77% -7.18%
June 30, 2021 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 six years are shown. 152 16-161

Revenues:

Taxes and assessments:

Property
Sales
Transient occupancy
Other taxes
Intergovernmental
Licenses, permits and fees
Charges for services
Fines and forfeitures
Investment income
Net decrease in fair value of investments
Property income
Donations
Other
Total revenues
Expenditures:

General government:

City council
City clerk
City attorney
City manager
Finance
Human resources
Total general government
Public safety:

Police
Fire
Total public safety
Public works:

Public works - general services
Public works
Utilities
Total public works

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2023

Page 1 of 2 ends

Budgeted Amounts
Original Final
$ 134,803,082 $
134,803,082
46,526,493
46,526,493
27,788,729
27,788,729
8,774,567
8,774,567
1,823,903
3,108,014
5,870,373
5,870,373
22,005,341
23,228,088
3,870,567
3,870,567
1,300,000
1,300,000
12,098,168 12,510,568
412,300 515,560
(243,020) 2,448,765
265,030,503 270,744,806
857,463
863,284
1,130,823
1,379,662
2,050,156
2,136,800
5,717,017
6,767,974
8,632,505
8,895,028
3,111,641
3,270,147
21,499,605 23,312,895
Actual
Variance with
Final Budget
Positive
(Negative)
$ 138,358,730 $ 3,555,648
46,552,459
25,966
30,201,649
2,412,920
10,079,711
1,305,144
4,369,009
1,260,995
5,676,642
(193,731)
25,187,127
1,959,039
3,840,774
(29,793)
1,905,894
605,894
(215,495)
(215,495)
15,459,206
2,948,638
142,031
(373,529)
3,263,578
814,813
284,821,315 14,076,509
688,972
174,312
1,175,423
204,239
2,323,016
(186,216)
3,965,256
2,802,718
8,923,557
(28,529)
3,147,738
122,409
20,223,962 3,088,933
71,622,531 74,565,618 70,728,319 3,837,299
60,255,549 63,255,373 61,172,432 2,082,941
131,878,080 137,820,991
32,490,987 34,897,868
11,906,935 12,686,077
5,649,416 5,797,297
50,047,338 53,381,242
131,900,751 5,920,240
33,330,511 1,567,357
11,780,556 905,521
5,816,100 (18,803)
50,927,167 2,454,075
See accompanying notes to required supplementary information 153 16-162

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2023

Page 2 of 2 ends

Community development:

Community development
Code and water quality enforcement
Total community development
Community services:

Parking operations
Library services
Recreation and senior services
Total community services
Capital outlay
Debt service:

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

Transfers in
Transfers out
Inception of subscription -based IT arrangements
Total other financing
sources (uses)
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
12,933,976
13,396,827
13,193,708
203,119
864,723
884,817
854,597
30,220
13,798,699
14,281,644
14,048,305
233,339
2,236,701
2,884,799
2,099,521
785,278
9,432,008
10,292,150
9,204,395
1,087,755
13,627,977
14,564,352
13,844,593
719,759
25,296,686
27,741,301
25,148,509
2,592,792
529,489 (529,489)
1,148,166 (1,148,166)
70,683 (70,683)
- - 1,218,849 (1,218,849)
242,520,408 256,538,073 243,997,032 12,541,041
22,510,095 14,206,733 40,824,283 26,617,550
17,300,724 18,428,263 18,428,263 -
(31,597,269) (65,478,891) (65,478,891) -
- - 529,489 529,489
(14,296,545) (47,050,628) (46,521,139) 529,489
8,213,550 (32,843,895) (5,696,856) 27,147,039
97,139,381 97,139,381 97,139,381 -
$ 105,352,931 $ 64,295,486 $ 91,442,525 $ 27,147,039
See accompanying notes to required supplementary information 154
16-163

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Tide and Submerged Land - Operating
For the Year Ended June 30, 2023
Revenues:

Intergovernmental
Licenses, permits and fees
Charges for services
Fines and forfeitures
Investment income
Net decrease in fair value of investments
Property income
Other
Budgeted Amounts
Original Final
70,690
10,481
29,500
192,208
12,645,321
Actual
Variance with
Final Budget
Positive
(Negative)
5,000
$ - $
(5,000)
70,690
85,244
14,554
10,481
27,057
16,576
29,500
52,101
22,601
192,208
108,738
(83,470)
-
(78,768)
(78,768)
13,145,321
14,166,264
1,020,943
-
1,200
1,200
Total revenues 12,948,200 13,453,200 14,361,836 908,636 Expenditures:

General government
432,505
432,505
432,505
-
Public works
1,311,056
1,927,388
1,889,771
37,617
Community development
2,050
9,550
12,784
(3,234)
Community services
1,932,382
2,358,399
2,198,993
159,406
Capital outlay
1,975,000
4,687,023
1,434,064
3,252,959
Total expenditures
5,652,993
9,414,865
5,968,117
3,446,748
Excess (deficiency) of revenues
over expenditures 7,295,207 4,038,335 8,393,719 4,355,384 Other financing sources:

Transfers in
Transfers out
Total other financing sources
Net change in fund balance
Fund balance, beginning
Fund balance, ending
9,987,817 11,546,069 11,546,069 -
(17,300,724) (18,380,271) (18,380,271) -
(7,312,907) (6,834,202) (6,834,202) -
(17,700) (2,795,867) 1,559,517 4,355,384
4,547,800 4,547,800 4,547,800 -
$ 4,530,100 $ 1,751,933 $ 6,107,317 $ 4,355,384
See accompanying notes to required supplementary information 155
16-164

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Tide and Submerged Land - Harbor Capital
For the Year Ended June 30, 2023
Revenues:

Investment income
Net decrease in fair value of investments
Property income
Donations
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)
$ 436,141
$ 436,141 $
617,424
$ 181,283
-
-
(249,668)
(249,668)
3,945,664
3,945,664
5,919,115
1,973,451
-
12,000
12,415
415
4,381,805
4,393,805
6,299,286
1,905,481
3,471,406
16,713,995
12,218,947
4,495,048
910,399
(12,320,190)
(5,919,661)
6,400,529
4,600,000
4,600,000
4,600,000
-
5,510,399
(7,720,190)
(1,319,661)
6,400,529
31,534,472
31,534,472
31,534,472
-
$ 37,044,871 $ 23,814,282 $ 30,214,811 $ 6,400,529
See accompanying notes to required supplementary information 156
16-165

CITY OF NEWPORT BEACH
Notes to Required Supplementary Information
June 30, 2023
(1) Budgetary Control and Compliance
The City adheres to the following general procedures in establishing the budgetary data reflected in the financial statements:
• During May, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted at City Council meetings to obtain citizen comments. Prior to July 1, the budget is legally adopted through passage of an appropriation resolution. • Budgets are adopted on an annual basis consistent with generally accepted accounting principles for General and Special Revenue Funds, except for the Opioid Remediation Fund, for which no budget was adopted.
• The City does not present budget information on Capital Projects Funds since the City approves project -length budgets. These project -length budgets authorize total expenditures over the duration of a construction project rather than through year -by -year budgeting.
• The City does not present budget information on Debt Service and Permanent Funds since the City is not required to and does not adopt an annual budget for these funds. • The budget is formally integrated into the accounting system and employed as a management control device during the year.
• The legal level of budgetary control is at the fund level. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions which alter the total appropriations of any fund must be approved by the City Council. • At fiscal year-end, budget appropriations lapse. Budget appropriations for incomplete capital projects are re -budgeted in the following fiscal year by City Council action and are included in the revisions noted above. Projects that are not started during the budget year are re-evaluated in the following year.
• Encumbrances represent commitments related to unperformed contracts for goods and services. The City utilizes an encumbrance system as a management control technique to assist in controlling expenditures. Under this system, encumbrance accounting for the expenditure of funds is recorded in order to indicate outstanding commitments and is employed in the governmental fund types. Encumbrances outstanding at year-end are reported as committed or restricted fund balances since they do not constitute expenditures or liabilities. Encumbrances and their related budgets are honored in the subsequent year to fulfill these commitments and are presented in the original adopted budget.
157 16-166

(1)

CITY OF NEWPORT BEACH
Notes to Required Supplementary Information
June 30, 2023
Budgetary Control and Compliance (Continued)
Expenditures exceeded appropriations in the following governmental funds:

Appropriations Expenditures Variance
Supplemental Law Enforcement $ 200,000 $ 215,174 $ (15,174) 158
16-167

FINANCIAL SECTION
___Z
159 16-168

This page left blank intentionally.
160 16-169

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 Opioid Remediation Fund is used to account for revenues received from various settlements related to opioid manufacturing and distribution to be used exclusively for opioid remediation activities.
161 16-170

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.

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 American Rescue Plan Act Fund is used to account for federal funding received through Coronavirus State and Local Fiscal Recovery Funds under the American Rescue Plan Act.

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 Police Facility Fund is used to account for the purchase, design and construction of a new police station.

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.
162 16-171

The Miscellaneous FFP Projects Fund is used to account for expenditures for small scale facility rehabilitation, expansion and/or replacement in accordance with the Facilities Financing Planning Program.

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.

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 Donation 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. 163 16-172

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30, 2023

Page 1 of 7 ends

Special Revenue
State
SB1 Gas Tax
Asset
OTS
Gas Tax
RMRA
Forfeiture
DUI Grant
Assets
Cash and investments
$
3,506,082
$ 420,495
$ 529,236
$
Receivables:

Accounts (net of allowance)
-
-
-
Interest
12,583
1,509
1,129
-
Intergovernmental receivables
189,264
333,019
-
89,202
Restricted cash and investments with fiscal agent
-
-
-
Prepaid items
-
-
-
-
Total assets
$
3,707,929
$ 755,023
$ 530,365
$ 89,202
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:

Accounts payable
$
350
$ 338,972
$
$
Accrued payroll
-
-
Unearned revenue
-
Due to other funds
-
-
89,202
Total liabilities
350
338,972
89,202
Deferred inflows of resources:

Unavailable revenue
-
-
-
Fund balances (deficits):

Nonspendable:

Prepaid items
Permanent endowment
-
-
Restricted
3,707,579
416,051
530,365
Committed
-
-
-
Unassigned
-
-
-
Total fund balances (deficits)
3,707,579
416,051
530,365
-
Total liabilities, deferred inflows of resources
and fund balances
$
3,707,929
$ 755,023
$ 530,365
$ 89,202
(continued)
164 16-173

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30, 2023

Page 2 of 7 ends

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
Fund balances (deficits):

Nonspendable:

Prepaid items
Permanent endowment
Restricted
Committed
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources
and fund balances
Special Revenue
Circulation Building Community Air Quality
and Excise Development Management
Transportation Tax Block Grant District
$ 1,964,320 $ 199,767 $ $ 1,547,183
7,050 716 5,552
- - 328,762 27,924
$ 1,971,370 $ 200,483 $ 328,762 $ 1,580,659
$ 317,611 $ 12,500 $ 219,889 $
- - 108,873
317,611 12,500 328,762
27,924
1,653,759 187,983 1,552,735
1,653, 759 187,983 1,552,735
$ 1,971,370 $ 200,483 $ 328,762 $ 1,580,659
(continued)
165 16-174

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30, 2023

Page 3 of 7 ends

Special Revenue
Supplemental
Law
Opioid
Environmental
Enforcement
Remediation
Liability
Services
Fund
Contributions
FIIN
Assets
Cash and investments
$
9,220,852
$
$
334,260
$ 2,541,179
$ 1,185,800
Receivables:

Accounts (net of allowance)
-
-
527,313
-
Interest
33,084
254
4,256
Intergovernmental receivables
-
745,047
-
Restricted cash and investments with fiscal agent
-
-
Prepaid items
21,150
-
-
-
Total assets
$
9,275,086
$
$
334,260
$ 3,813,793
$ 1,190,056
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:

Accounts payable
$
15,720
$
$
$ 298,945
$
Accrued payroll
2,669
-
Unearned revenue
-
334,260
3,104,430
Due to other funds
-
-
-
Total liabilities
18,389
334,260
3,403,375
Deferred inflows of resources:

Unavailable revenue
-
-
422,043
Fund balances (deficits):

Nonspendable:

Prepaid items
21,150
-
Permanent endowment
-
-
Restricted
9,235, 547
1,190,056
Committed
-
-
-
Unassigned
-
(11,625)
-
Total fund balances (deficits)
9,256,697
(11,625)
1,190,056
Total liabilities, deferred inflows of resources
and fund balances
$
9,275,086
$
$
334,260
$ 3,813,793
$ 1,190,056
(continued)
166 16-175

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30, 2023

Page 4 of 7 ends

Special Revenue
Restricted
Oceanfront
American
PEG
Programs
Measure M
Encroachment
Rescue Plan Act
Fees
Assets
Cash and investments
$
1,995,021
$ 3,566,148
$
910,052
$
7,112,115
$ 3,060,132
Receivables:

Accounts (net of allowance)
-
-
32,304
-
81,422
Interest
7,160
13,450
3,267
10,983
Intergovernmental receivables
-
1,123,102
-
-
Restricted cash and investments with fiscal agent
-
Prepaid items
-
-
-
-
Total assets
$
2,002,181
$ 4,702,700
$
945,623
$
7,112,115
$ 3,152,537
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:

Accounts payable
$
1,674
$ 1,542,618
$
$
159,430
$
Accrued payroll
-
-
-
Unearned revenue
514,771
6,952,685
Due to other funds
-
-
-
Total liabilities
1,674
2,057,389
7,112,115
Deferred inflows of resources:

Unavailable revenue
-
709,014
-
Fund balances (deficits):

Nonspendable:

Prepaid items
-
Permanent endowment
-
-
-
Restricted
2,000,507
1,936,297
945,623
3,152,537
Committed
-
-
-
-
Unassigned
-
-
-
-
Total fund balances (deficits)
2,000,507
1,936,297
945,623
-
3,152,537
Total liabilities, deferred inflows of resources
and fund balances
$
2,002,181
$ 4,702,700
$
945,623
$
7,112,115
$ 3,152,537
(continued)
167 16-176

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30, 2023

Page 5 of 7 ends

Capital Projects
Newport
Assessment
Civic Center
Uptown
District
Fire Station
and Park
Police Facility
Undergrounding
Assets
Cash and investments
$
7,672,742
$ 3,099,911
$ 484,892
$ 647,395
$ 3,236
Receivables:

Accounts (net of allowance)
-
-
-
-
-
Interest
27,809
11,126
1,561
11,361
12 Intergovernmental receivables
-
-
-
-
Restricted cash and investments with fiscal agent
282,123
Prepaid items
-
-
-
-
-
Total assets
$
7,700,551
$ 3,393,160
$ 486,453
$ 658,756
$ 3,248
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:

Accounts payable
$
416,438
$ 83,209
$ 1,088
$
$
Accrued payroll
-
-
-
Unearned revenue
Due to other funds
-
-
-
Total liabilities
416,438
83,209
1,088
Deferred inflows of resources:

Unavailable revenue
-
-
-
Fund balances (deficits):

Nonspendable:

Prepaid items
Permanent endowment
-
-
-
Restricted
7,284,113
282,123
-
3,248
Committed
-
3,027,828
485,365
658,756
-
Unassigned
-
-
-
-
-
Total fund balances (deficits)
7,284,113
3,309,951
485,365
658,756
3,248
Total liabilities, deferred inflows of resources
and fund balances
$
7,700,551
$ 3,393,160
$ 486,453
$ 658,756
$ 3,248
(continued)
168 16-177

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30, 2023

Page 6 of 7 ends

Capital Projects
Balboa Village
Parks and
Parking
Community
Management
Facilities
Neighborhood
Miscellaneous
Centers
District
Maintenance
Enhancement
FFP Projects
Assets
Cash and investments
$
14,808,700
$ 378,492
$ 4,200,568
$ 16,366,547
$ 1,950,592
Receivables:

Accounts (net of allowance)
-
-
-
-
-
Interest
53,164
1,355
15,076
58,741
Intergovernmental receivables
-
-
-
-
Restricted cash and investments with fiscal agent
Prepaid items
-
-
-
-
-
Total assets
$
14,861,864
$ 379,847
$ 4,215,644
$ 16,425,288
$ 1,950,592
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:

Accounts payable
$
180,383
$ 602
$ 160,271
$ 553,688
$ 78,783
Accrued payroll
-
-
-
-
-
Unearned revenue
Due to other funds
-
-
-
-
-
Total liabilities
180,383
602
160,271
553,688
78,783
Deferred inflows of resources:

Unavailable revenue
-
-
-
-
-
Fund balances (deficits):

Nonspendable:

Prepaid items
Permanent endowment
Restricted
-
-
-
-
-
Committed
14,681,481
379,245
4,055,373
15,871,600
1,871,809
Unassigned
-
-
-
-
-
Total fund balances (deficits)
14,681,481
379,245
4,055,373
15,871,600
1,871,809
Total liabilities, deferred inflows of resources
and fund balances
$
14,861,864
$ 379,847
$ 4,215,644
$ 16,425,288
$ 1,950,592
(continued)
169 16-178

Assets
Cash and investments
Receivables:

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

Unavailable revenue
Fund balances (deficits):

Nonspendable:

Prepaid items
Permanent endowment
Restricted
Committed
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources
and fund balances

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Balance Sheet
June 30, 2023

Page 7 of 7 ends

Capital Projects Permanent Fund
Unrestricted
Junior Capital
Lifeguards Improvements Bay Dredging
Total
Other
Ackerman Governmental
Donation Funds
$ 1,079 $ 11,913,811 $ 5,341,859 $ 1,182,286 $ 106,144,752 - - 641,039
4 19,172 4,243 304,617
- - 2,836,320
282,123
21,150
$ 1,083 $ 11,913,811 $ 5,361,031 $ 1,186,529 $ 110,230,001 $ $ 368,009 $
368,009
$ 5,000 $ 4,755,180
- 2,669
10, 906,146
198,075
5,000 15,862,070
1,158,981
- - 21,150
3,857,000 772,781 4,629,781
- - 1,504,031 408,748 35,991,302
1,083 11,545,802 - - 52,578,342
- - (11,625)
1,083 11,545,802 5,361,031 1,181,529 93,208,950
$ 1,083 $ 11,913,811 $ 5,361,031 $ 1,186,529 $ 110,230,001 170
16-179

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2023

Page 1 of 7 ends

Revenues:

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

Current:

General government
Public safety
Public works
Community development
Community services
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
Special Revenue
State SB1 Gas Tax Asset OTS
Gas Tax RMRA Forfeiture DUI Grant
2,155,859 1,900,470 13,458 299,968
53,607 21,281 9,050
(32,267) 17,008 (799)
2,177,199 1,938,759 21,709 299,968
25,139 299,968
919,833 3,655,720
919,833 3,655,720 25,139 299,968
1,257,366 (1,716,961) (3,430)
1,257,366 (1,716,961) (3,430)
2,450,213 2,133,012 533,795
$ 3,707,579 $ 416,051 $ 530,365 $
(continued)
171
16-180

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2023

Page 2 of 7 ends

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

Othertaxes
$
$
$ -
$ -
Intergovernmental
997,666
110,841
Licenses, permits and fees
289,075
144,392
-
-
Property income
-
-
-
Investment income
50,418
5,325
25,183
Net increase (decrease) in fair value of investments
(16,025)
(4,595)
(7,107)
Donations
Special assessments
Other
-
-
-
-
Total revenues
323,468
145,122
997,666
128,917
Expenditures:

Current:

General government
-
-
-
-
Public safety
Public works
-
Community development
667,747
Community services
-
-
-
Capital outlay
1,849,971
250,975
-
Debt service:

Principal
-
-
208,000
Interest and fiscal charges
-
-
2,548
Total expenditures
1,849,971
250,975
878,295
-
Excess (deficiency) of revenues
over expenditures
(1,526,503)
(105,853)
119,371
128,917
Other financing sources (uses):

Transfers in
-
-
Transfers out
Total other financing sources (uses)
-
-
Net change in fund balances
(1,526,503)
(105,853)
119,371
128,917
Fund balances (deficits), beginning
3,180,262
293,836
(119,371)
1,423,818
Fund balances (deficits), ending
$ 1,653,759
$ 187,983
$ -
$ 1,552,735
(continued)
172 16-181

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2023

Page 3 of 7 ends

Revenues:

Current:

General government
Public safety
Public works
Community development
Community services
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
Special Revenue
Supplemental
Law Opioid
Environmental
Enforcement Remediation
Liability
Services Fund
Contributions
FUN
$ 874,747
$ - $
$ - $
-
-
215,174
2,973,366
153,229
4,672
21,038
(59,583)
(27,592)
(10,997:
492,038
70,058
-
8,428
1,038,451
215,174
3,450,912
10,041
- 215,174
380,823 -
- 118,830
3,635,163 -
380,823 215,174
657,628
657,628
8,599,069
$ 9,256,697 $
3,635,163 118,830
(184,251) (108,789)
(184,251) (108,789)
172,626 1,298,845
$ (11,625) $ 1,190,056
(continued)
173 16-182

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2023

Page 4 of 7 ends

Revenues:

Other taxes
Intergovernmental
Licenses, permits and fees
Property income
Investment income
Net increase (decrease) in fair value of investments
Donations
Special assessments
Other
Total revenues
Expenditures:

Current:

General government
Public safety
Public works
Community development
Community services
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
ial Revenue
Restricted
Oceanfront
American
PEG
Programs
Measure M
Encroachment
Rescue Plan Act
Fees
-
2,697,652
3,212,998
150,000
-
-
-
340,307
24,300
-
261,477
-
28,364
57,163
12,457
44,888
20,329
(28,118)
8,898
33,763
64,829
-
-
69,038
-
-
-
-
356,860
2,726,697
282,832
3,212,998
418,958
24,411
1,746
92,428 - -
- 2,990,672 3,188,587
94,174 2,990,672 - 3,212,998 -
262,686 (263,975) 282,832 - 418,958
5,010 - -
(500,000) (47,992)
- 5,010 (500,000) (47,992)
262,686 (258,965) (217,168) 370,966
1,737,821 2,195,262 1,162,791 2,781,571
$ 2,000,507 $ 1,936,297 $ 945,623 $ $ 3,152,537
(continued)
174 16-183

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2023

Page 5 of 7 ends

Revenues:

Current:

General government
Public safety
Public works
Community development
Community services
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
Newport
Assessment
Civic Center
Uptown
District
Fire Station
and Park
Police Facility
Undergrounding
119,878
55,655
7,460
216,587
55 17,100
29,340
(3,484)
437,569
(24)
4,948,430
5,085,408
84,995
3,976
654,156
31 2,848,473
288,132
28, 863, 760
-
-
2,774
2,848,473
288,132
2,774
28,863,760
2,236,935
(203,137)
1,202
(28,209,604)
31 -
900,000
-
28,868,360
- 900,000 - 28,868,360
2,236,935 696,863 1,202 658,756 31
5,047,178 2,613,088 484,163 - 3,217
$ 7,284,113 $ 3,309,951 $ 485,365 $ 658,756 $ 3,248
(continued)
175 16-184

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2023

Page 6 of 7 ends

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

Othertaxes
$
$
$
$
$
Intergovernmental
Licenses, permits and fees
Property income
Investment income
183,778
8,950
77,501
190,960
Net increase (decrease) in fair value of investments
(63,957)
(22,321)
(11,671)
21,689
Donations
-
Special assessments
Other
-
-
-
-
Total revenues
119,821
(13,371)
65,830
212,649
Expenditures:

Current:

General government
-
-
-
-
Public safety
Public works
Community development
Community services
-
-
-
-
-
Capital outlay
916,327
36,448
1,227,860
2,323,440
87,910
Debt service:

Principal
-
-
-
-
-
Interest and fiscal charges
-
-
-
-
-
Total expenditures
916,327
36,448
1,227,860
2,323,440
87,910
Excess (deficiency) of revenues
over expenditures
(796,506)
(49,819)
(1,162,030)
(2,110,791)
(87,910)
Other financing sources (uses):

Transfers in
7,793,354
-
2,500,000
16,500,000
6,900,000
Transfers out
-
-
-
(4,940,281)
Total other financing sources (uses)
7,793,354
2,500,000
16,500,000
1,959,719
Net change in fund balances
6,996,848
(49,819)
1,337,970
14,389,209
1,871,809
Fund balances (deficits), beginning
7,684,633
429,064
2,717,403
1,482,391
-
Fund balances (deficits), ending
$ 14,681,481
$ 379,245
$ 4,055,373
$ 15,871,600
$ 1,871,809
(continued)
176 16-185

CITY OF NEWPORT BEACH
Other Governmental Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2023

Page 7 of 7 ends

Revenues:

Other taxes
Intergovernmental
Licenses, permits and fees
Property income
Investment income
Net increase (decrease) in fair value of investments
Donations
Special assessments
Other
Total revenues
Expenditures:

Current:

General government
Public safety
Public works
Community development
Community services
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
Capital Projects
Permanent Funds
Total
Unrestricted
Other
Junior Capital
Ackerman
Governmental
Lifeguards Improvements
Bay Dredging
Donation
Funds
$ $
$ $
874,747
-
14,577,452
923,774
-
285,777
1,194
91,484
20,261
1,460,438
(5,894)
(42,061)
(9,398)
239,803
5,844
562,711
-
4,948,430
-
-
-
147,524
1,144
49,423
10,863
24,020,656
24,411
- 540,281
- 3,229,296
5,000 674,493
- - - 211,258
87,795 3,929,034 54,251,627
- 208,000
- - - 5,322
87,795 3,929,034 5,000 59,144,688
(86,651) (3,929,034) 49,423 5,863 (35,124,032)
8,930,000 72,396,724
(16,950,000) (22,438,273)
(8,020,000) - - 49,958,451
(86,651) (11,949,034) 49,423 5,863 14,834,419
87,734 23,494,836 5,311,608 1,175,666 78,374,531
$ 1,083 $ 11,545,802 $ 5,361,031 $ 1,181,529 $ 93,208,950 177 16-186

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental
$ 2,503,731
$ 2,503,731
$ 2,155,859
$ (347,872)
Investment income
21,669
21,669
53,607
31,938
Net decrease in fair value of investments
-
-
(32,267)
(32,267)
Total revenues
2,525,400
2,525,400
2,177,199
(348,201)
Expenditures:

Capital outlay
2,075,000
3,642,243
919,833
2,722,410
Net change in fund balance
450,400
(1,116,843)
1,257,366
2,374,209
Fund balance, beginning
2,450,213
2,450,213
2,450,213
-
Fund balance, ending
$ 2,900,613
$ 1,333,370
$ 3,707,579
$ 2,374,209
178 16-187

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
SB1 Gas Tax RMRA Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:

Intergovernmental
$ 1,957,264
$ 1,957,264
$ 1,900,470
$ (56,794)
Investment income
3,321
3,321
21,281
17,960
Net increase in fair value of investments
-
-
17,008
17,008
Total revenues
1,960,585
1,960,585
1,938,759
(21,826)
Expenditures:

Capital outlay
2,000,000
3,990,028
3,655,720
334,308
Net change in fund balance
(39,415)
(2,029,443)
(1,716,961)
312,482
Fund balance, beginning
2,133,012
2,133,012
2,133,012
-
Fund balance, ending
$ 2,093,597
$ 103,569
$ 416,051
$ 312,482
179 16-188

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2023
Revenues:

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

Public safety
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Budgeted Amounts
Original Final
Variance with
Final Budget
Positive
Actual
(Negative)
$ 13,458
$ 13,458
9,050
9,050
(799)
(799)
21,709 21,709
65,000
65,000
25,139
39,861
(65,000)
(65,000)
(3,430)
61,570
$ 468,795 $ 468,795 $ 530,365 $ 61,570
180 16-189

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
OTS DUI Grant Special Revenue Fund
For the Year Ended June 30, 2023
Revenues:

Intergovernmental
Expenditures:

Public safety
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 67,500 $ 417,500 $ 299,968 $ (117,532:
(273) (273) - 273
$ (273) $ (273) $ - $ 273
181 16-190

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Circulation and Transportation Special Revenue Fund
For the Year Ended June 30, 2023
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
Variance with
Final Budget
Positive
Actual
(Negative)
$ 289,075
$ 289,075
50,418
50,418
(16,025)
(16,025:
323,468 323,468
3,103, 098 1,849,971 1,253,127
(3,103,098) (1,526,503) 1,576,595
$ 3,180,262 $ 77,164 $ 1,653,759 $ 1,576,595
182 16-191

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Building Excise Tax Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:

Licenses, permits and fees
$ 202,950 $
202,950
$ 144,392
$ (58,558)
Investment income
3,006
3,006
5,325
2,319
Net decrease in fair value of investments
-
-
(4,595)
(4,595)
Total revenues
205,956
205,956
145,122
(60,834)
Expenditures:

Capital outlay
-
273,613
250,975
22,638
Net change in fund balance
205,956
(67,657)
(105,853)
(38,196)
Fund balance, beginning
293,836
293,836
293,836
-
Fund balance, ending
$ 499,792 $
226,179
$ 187,983
$ (38,196)
183 16-192

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2023
Revenues:

Intergovernmental
Expenditures:

Community development
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)
$ 385,974 $ 1,202,150 $ 997,666 $ (204,484)
183,586 925,899 667,747 258,152
208,000 208,000 208,000 -
2,548 2,548 2,548 -
394,134 1,136,447 878,295 258,152
(8,160) 65,703 119,371 53,668
(119,371) (119,371) (119,371) -
$ (127,531) $ (53,668) $ - $ 53,668
184 16-193

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Air Quality Management District Special Revenue Fund
For the Year Ended June 30, 2023
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
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 100,000 $ 100,000 $ 110,841 $ 10,841
16,734 16,734 25,183 8,449
- - (7,107) (7,107;
116,734 116,734 128,917 12,183
- 16,319
116,734 100,415
- 16,319
128,917 28,502
1,423,818 1,423,818 1,423,818 -
$ 1,540,552 $ 1,524,233 $ 1,552,735 $ 28,502
185 16-194

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Environmental Liability Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:

Other taxes $ 670,563 $ 670,563 $ 874,747 $ 204,184
Investment income 153,829 153,829 153,229 (600)
Net decrease in fair value of investments - - (59,583) (59,583) Other revenue 40,000 40,000 70,058 30,058
Total revenues
864,392
864,392
1,038,451
174,059
Expenditures:

Public works
684,737
685,566
380,823
304,743
Net change in fund balance
179,655
178,826
657,628
478,802
Fund balance, beginning
8,599,069
8,599,069
8,599,069
-
Fund balance, ending
$ 8,778,724
$ 8,777,895
$ 9,256,697 $
478,802
186 16-195

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Supplemental Law Enforcement Services Special Revenue Fund For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 200,000 $ 200,000 $ 215,174 $ 15,174 Expenditures:

Public safety 200,000 200,000 215,174 (15,174)
Net change in fund balance - - - -
Fund balance, beginning - - - -
Fund balance, ending
187 16-196

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Opioid Remediation Special Revenue Fund
For the Year Ended June 30, 2023
Revenues:

Other
Expenditures:

Public safety
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Budgeted Amounts
Original Final
- $ 395,766
Variance with
Final Budget
Positive
Actual (Negative)
- $ (395,766)
395,766 - 395,766
188 16-197

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Contributions Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:

Intergovernmental
$ 5,147,691
$ 8,585,269
$ 2,973,366
$ (5,611,903)
Investment income
36,533
36,533
4,672
(31,861)
Net decrease in fair value of investments
-
-
(27,592)
(27,592)
Donations
8,371,043
8,963,927
492,038
(8,471,889)
Other
-
42,650
8,428
(34,222)
Total revenues
13,555,267
17,628,379
3,450,912
(14,177,467)
Expenditures:

Capital outlay
8,502,000
17,157,115
3,635,163
13,521,952
Net change in fund balance
5,053,267
471,264
(184,251)
(655,515)
Fund balance, beginning
172,626
172,626
172,626
-
Fund balance, ending
$ 5,225,893
$ 643,890
$ (11,625)
$ (655,515)
189 16-198

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
FUN Special Revenue Fund
For the Year Ended June 30, 2023
Revenues:

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

Community services
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 23,910 $ 23,910 $ 21,038 $ (2,872)
(10,997) (10,997)
23,910 23,910 10,041 (13,869)
147,000 147,000 118,830 28,170
(123,090) (123,090) (108,789)
1,298,845 1,298,845 1,298,845
$ 1,175,755 $ 1,175,755 $ 1,190,056 $
14,301
14,301
190 16-199

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Restricted Programs Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:

Licenses, permits and fees
$ 150,000
$ 150,000
$ 150,000
$ -
Property income
32,118
32,118
24,300
(7,818)
Investment income
-
-
28,364
28,364
Net increase in fair value of investments
-
-
20,329
20,329
Donations
35,000
35,000
64,829
29,829
Other
16,672
16,672
69,038
52,366
Total revenues
233,790
233,790
356,860
123,070
Expenditures:

Community development
-
20,000
1,746
18,254
Community services
-
128,881
92,428
36,453
Total Expenditures
-
148,881
94,174
54,707
Net change in fund balance
233,790
84,909
262,686
177,777
Fund balance, beginning
1,737,821
1,737,821
1,737,821
-
Fund balance, ending
$ 1,971,611
$ 1,822,730
$ 2,000,507
$ 177,777
191 16-200

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Measure M Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:

Intergovernmental
$ 3,293,536
$ 3,831,508
$ 2,697,652
$ (1,133,856)
Investment income
7,123
7,123
57,163
50,040
Net decrease in fair value of investments
-
-
(28,118)
(28,118)
Total revenues
3,300,659
3,838,631
2,726,697
(1,111,934)
Expenditures:

Capital outlay
1,857,000
5,675,923
2,990,672
2,685,251
Excess (deficiency) of revenues
over expenditures
1,443,659
(1,837,292)
(263,975)
1,573,317
Other financing sources:

Transfers in
-
5,010
5,010
-
Net change in fund balance
1,443,659
(1,832,282)
(258,965)
1,573,317
Fund balance, beginning
2,195,262
2,195,262
2,195,262
-
Fund balance, ending
$ 3,638,921
$ 362,980
$ 1,936,297
$ 1,573,317
192 16-201

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
Oceanfront Encroachment Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
Revenues:

Property income
$ 254,640 $ 254,640
$ 261,477
$ 6,837
Investment income
- -
12,457
12,457
Net increase in fair value of investments
- -
8,898
8,898
Total revenues
254,640 254,640
282,832
28,192
Other financing sources:

Transfers in
500,000
-
- -
Transfers out
(500,000)
(500,000)
(500,000) -
Total other financing sources (uses)
-
(500,000)
(500,000) -
Net change in fund balance
254,640
(245,360)
(217,168) 28,192
Fund balance, beginning
1,162,791
1,162,791
1,162,791 -
Fund balance, ending
$ 1,417,431
$ 917,431
$ 945,623 $ 28,192
193 16-202

CITY OF NEWPORT BEACH
Budgetary Comparison Statement
American Rescue Plan Act
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 10,141,272 $ 3,238,596 $ 3,212,998 $ (25,598) Expenditures:

General government - 50,009 24,411 25,598
Capital outlay 10,100,000 10,141,272 3,188,587 6,952,685 Total expenditures 10,100,000 10,191,281 3,212,998 6,978,283 Net change in fund balance 41,272 (6,952,685) - (6,952,685) Fund balance, beginning - - - -
Fund balance, ending $ 41,272 $ (6,952,685) $ - $ (6,952,685) 194 16-203

CITY OF NEWPORT BEACH
Budgetary Comparison Schedule
PEG Fees Special Revenue Fund
For the Year Ended June 30, 2023
Revenues:

Licenses, permits and fees
Investment income
Net increase in fair value of investments
Total revenues
Other financing (uses):

Transfers out
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 360,000 $ 360,000 $ 340,307 $ (19,693)
- - 44,888 44,888
- - 33,763 33,763
360,000 360,000 418,958 58,958
- (47,992) (47,992)
360,000 312,008 370,966
2,781,571 2,781,571 2,781,571
$ 3,141,571 $ 3,093,579 $ 3,152,537 $
58,958
58,958
195
16-204

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196 16-205

FINANCIAL SECTION
___Z
197 16-206

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198 16-207

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.
199 16-208

CITY OF NEWPORT BEACH
Internal Service Funds
Combining Statement of Net Position
June 30, 2023
Total
Insurance
Compensated
Retiree
Equipment
Information
Internal
Assets
Reserve
Absences
Insurance
Maintenance
Technology
Service Funds
Current assets:

Cash and investments
$ 41,908,438
$ 6,208,195
$ 742,138
$ 17,972,583
$ 10,656,998
$ 77,488,352
Receivables:

Accounts (net of allowance)
-
-
905
1,574
-
2,479
Interest
148,622
20,856
2,241
64,718
37,964
274,401
Inventories
-
-
-
438,573
-
438,573
Prepaid items
49,178
259,241
-
668,136
976,555
Total current assets
42,106,238
6,229,051
1,004,525
18,477,448
11,363,098
79,180,360
Noncurrent assets:

Capital assets:

Equipment
42,794,283
3,479,149
46,273,432
Intangible right to use equipment
-
353,888
353,888
Structures
39,581
-
39,581
Software
-
4,360,625
4,360,625
Intangible right to use subscriptions
1,723,597
381,348
2,104,945
Work in progress
-
-
-
Less accumulated depreciation/amortization
(27,019,639)
(6,520,991)
(33,540,630)
Total capital assets (net of accumulated
depreciation/amortization)
17,537,822
2,054,019
19,591,841
Total assets
42,106,238
6,229,051 1,004,525 36,015,270
13,417,117
98,772,201
Deferred outflows of resources:

Deferred amount from pension plans
-
- - 950,453
1,905,078
2,855,531
Deferred amount from OPEB
214,109
429,164
643,273
Total deferred outflows of resources
1,164,562
2,334,242
3,498,804
Liabilities
Current liabilities:

Accounts payable
89,324
- - 540,108
98,748
728,180
Accrued payroll
-
397,234 188,324 37,816
85,376
708,750
Due to other funds
-
- 353,001 -
-
353,001
Workers' compensation - current
3,072,704
-
3,072,704
General liability - current
2,938,129
-
2,938,129
Compensated absences - current
-
4,223,096
-
4,223,096
Lease liability - current
- -
68,951
68,951
Subscription liability - current
168,512
151,540
320,052
Total current liabilities
6,100,157
4,620,330 541,325 746,436
404,615
12,412,863
Noncurrent liabilities:

Workers' compensation
13,323,449
- - -
-
13,323,449
General liability
5,750,932
-
5,750,932
Compensated absences
-
8,467,944
-
8,467,944
Lease liability
- -
133,221
133,221
Subscription liability
1,470,387
77,741
1,548,128
Net pension liability
2,227,921
4,465,652
6,693,573
Net OPEB liability
256,634
514,406
771,040
Total noncurrent liabilities
19,074,381
8,467,944 3,954,942
5,191,020
36,688,287
Total liabilities
25,174,538
13,088,274 541,325 4,701,378
5,595,635
49,101,150
Deferred inflows of resources:

Deferred amount from pension plans
-
- - 17,736
35,547
53,283
Deferred amount from OPEB
4,338
8,695
13,033
Total deferred inflows of resources
22,074
44,242
66,316
Net Position
Invested in capital assets
-
- 15,830,374
1,611,209
17,441,583
Unrestricted
16,931,700
(6,859,223) 463,200 16,626,006
8,500,273
35,661,956
Total net position
$ 16,931,700
$ (6,859,223) $ 463,200 $ 32,456,380
$ 10,111,482
$ 53,103,539
200 16-209

Operating revenues:

Charges for services
Employee contributions
Other
Total operating revenues
Operating expenses:

Salaries and wages
Depreciation/amortization
Professional services
Maintenance and supplies
Fleet parts and supplies
Telecommunication
Hardware
Software
Workers' compensation
Claims and judgments
Compensated absences
OPEB
Other
Total operating expenses
Operating income (loss)
Nonoperating revenues:

Investment income
Net decrease in fair value of investments
Gain on sale of capital assets
Interest expense
Total nonoperating revenues
Income (loss) before transfers
Transfers in
Total transfers
Change in net position
Net position, beginning
Net position, ending

CITY OF NEWPORT BEACH
Internal Service Funds
Combining Statement of Revenues, Expenses
and Changes in Net Position
For the Year Ended June 30, 2023
Insurance Compensated Retiree
Reserve Absences Insurance
Total
Equipment Information Internal
Maintenance Technology Service Funds
$ 13,356,646 $
2,796,453
$ 4,124,923
$ 8,205,587
$ 7,650,517
$ 36,134,126
-
-
25,880
-
-
25,880
11,872
-
3,838,788
3,918
355
3,854,933
13,368,518
2,796,453
7,989,591
8,209,505
7,650,872
40,014,939
-
-
-
986,886
2,471,844
3,458,730
3,534,588
557,254
4,091,842
301,283
709,721
1,011,004
1,670,153
1,584,709
3,254,862
517,579
-
517,579
-
204,977
204,977
211,872
211,872
349,977
349,977
4,903,042
-
4,903,042
5,618,183
-
5,618,183
-
2,007,182
-
2,007,182
-
6,187,129
-
6,187,129
-
2,289,379
126
2,289,505
10,521,225
2,007,182
8,476,508
7,010,489
6,090,480
34,105,884
2,847,293
789,271
(486,917)
1,199,016
1,560,392
5,909,055
659,427
96,233
14,710
281,867
174,685
1,226,922
(205,646)
(40,899)
(12,582)
(70,700)
(46,768)
(376,595)
355,270
-
355,270
-
(3,852)
(2,770)
(6,622)
453,781
55,334
2,128
562,585
125,147
1,198,975
3,301,074
844,605
(484,789)
1,761,601
1,685,539
7,108,030
-
-
379,452
379,452
379,452 379,452
3,301,074
844,605
(484,789)
2,141,053
1,685,539
7,487,482
13,630,626
(7,703,828)
947,989
30,315,327
8,425,943
45,616,057
$ 16,931,700
$ (6,859,223) $
463,200
$ 32,456,380
$ 10,111,482
$ 53,103,539
201
16-210

CITY OF NEWPORT BEACH
Internal Service Funds
Combining Statement of Cash Flows
For the Year Ended June 30, 2023
Total
Insurance
Compensated
Retiree
Equipment
Information
Internal
Reserve
Absences
Insurance
Maintenance
Technology
Service Funds
Cash flows from operating activities:

Receipts from user departments
$ 13,356,646
$ 2,796,453
$ 4,130,243
$ 8,215,027
$ 7,650,517
$ 36,148,886
Payments to employees
(4,270,715)
(2,202,671)
-
(1,112,839)
(2,730,603)
(10,316,828)
Payments to suppliers
(6,131,165)
(8,466,370)
(510,052)
(3,736,281)
(18,843,868)
Other operating cash receipts
11,872
3,864,668
3,918
355
3,880,813
Net cash provided (used) by operating activities
2,966,638
593,782
(471,459)
6,596,054
1,183,988
10,869,003
Cash flows from noncapital financing activities:

Cash received from other funds
-
-
-
379,449
379,449
Net cash provided by noncapital financing activities
379,449
379,449
Cash flows from capital and related financing activities:

Acquisition of capital assets
(3,550,221)
(234,489)
(3,784,710)
Lease liabilities and related
(67,960)
(67,960)
Subscription liabilities and related
(88,550)
(153,555)
(242,105)
Proceeds from sale of capital assets
355,270
355,270
Net cash provided (used) for capital and related financing activities
(3,283,501)
(456,004)
(3,739,505)
Cash flows from investing activities:

Investment income
419,706
49,492
2,958
188,393
118,903
779,452
Net cash provided by investing activities
419,706
49,492
2,958
188,393
118,903
779,452
Net increase (decrease) in cash and cash equivalents
3,386,344
643,274
(468,501)
3,880,395
846,887
8,288,399
Cash and cash equivalents, beginning
38,522,094
5,564,921
1,210,639
14,092,188
9,810,111
69,199,953
Cash and cash equivalents, ending
$ 41,908,438
$ 6,208,195
$ 742,138
$ 17,972,583
$ 10,656,998
$ 77,488,352
Reconciliation to the statement of net position:

Cash and investments reported on statement of net position $ 41,908,438
$ 6,208,195
$ 742,138
$ 17,972,583
$ 10,656,998
$ 77,488,352
Cash and cash equivalents
$ 41,908,438
$ 6,208,195
$ 742,138
$ 17,972,583
$ 10,656,998
$ 77,488,352
Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss)
$ 2,847,293
$ 789,271
$ (486,917)
$ 1,199,016
$ 1,560,392
$ 5,909,055
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:

Depreciation
-
-
-
3,534,588
557,254
4,091,842
Changes in operating assets and liabilities:

Decrease in accounts receivable
5,320
9,440
-
14,760
Decrease in inventories
-
(57,187)
(57,187)
(Increase) decrease in prepaid items
(37,377)
(59)
1,964,440
(338,838)
1,588,166
Increase (decrease) in accounts payable and accrued
payroll
(478,024)
(109,121)
10,197
77,637
(330,478)
(829,789)
Increase in workers' compensation
641,565
-
-
641,565
Increase in general liability
(6,819)
(6,819)
(Decrease)in compensated absences
(86,368)
(86,368)
(Decrease) in net pension liability and deferred cash flows (80,165)
(160,682)
(240,847)
(Decrease) in net OPEB liability and deferred cash flows -
(51,715)
(103,660)
(155,375)
Total adjustments
119,345
(195,489)
15,458
5,397,038
(376,404)
4,959,948
Net cash provided (used) by operating activities
$ 2,966,638
$ 593,782
$ (471,459)
$ 6,596,054
$ 1,183,988
$ 10,869,003
Noncash investing, capital, and financing activities:

Residual Equity transfer
Net (decrease) in fair value of investments
$ (205,646)
$ (40,899)
$ (12,582)
$ (70,700)
$ (46,768)
$ (376,595)
Obtaining an intangible right to use lease asset
5,616
5,616
Obtaining an intangible right to use subscription asset 1,723,597
381,348
2,104,945
Total of noncash activities
$ (205,646)
$ (40,89J9
$ (12,582)
$ 1,652,897
$ 340,196
$ 1,733,966
202 16-211

FINANCIAL SECTION
Z
203 16-212

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204 16-213

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.

The Flexible Spending Account Fund is used to account for monies withheld by the City from employees' wages based on their voluntary enrollment in flexible spending accounts.
205 16-214

CITY OF NEWPORT BEACH
Fiduciary Funds
Combining Statement of Fiduciary Net Position
June 30, 2023
Custodial Funds
Special
Tourism
Other
Flexible
Total
Assessment
Business
Business Police
Spending
Custodial
District
Improvement
Improvement Custodial
Account
Funds
Assets
Cash and investments
$ 561,421
$ 418,250
$ 6,823 $ 289,556
$ 125,728
$ 1,401,778
Restricted cash and investments with fiscal agent
1,318,999
-
- -
-
1,318,999
Receivable:

Interest
2,018
2,018
Intergovernmental receivable
29,936
-
- -
-
29,936
Total assets
1,912,374
418,250
6,823 289,556
125,728
2,752,731
Liabilities
Advances from other funds
-
- -
100,000
100,000
Due to others
39 418,250
6,823 646
-
425,758
Total liabilities
39 418,250
6,823 646
100,000
525,758
Net Position
Restricted for:

Individuals, organizations, and other governments
1,912,335 -
- 288,910
25,728
2,226,973
Total net position
$ 1,912,335 $ - $
- $ 288,910 $
25,728
$ 2,226,973
206 16-215

CITY OF NEWPORT BEACH
Fiduciary Funds
Combining Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2023
Custodial Funds
Special Tourism
Other
Flexible
Total
Assessment Business
Business Police
Spending
Custodial
District Improvement
Improvement Custodial
Account
Funds
Additions
Special assessments
$ 1,289,499 $
$ $ -
$
$ 1,289,499
Investment earnings
47,328
225
47,553
Other
-
101,673
221,680
323,353
Total additions
1,336,827
101,898
221,680
1,660,405
Deductions
Debt service
1,653,677
-
-
1,653,677
Administrative
112,756
-
-
112,756
Other
-
72,955
195,952
268,907
Total deductions
1,766,433
72,955
195,952
2,035,340
Net increase (decrease) in fiduciary net position
(429,606)
28,943
25,728
(374,935)
Net position, beginning of year
2,341,941
259,967
-
2,601,908
Net position, end of year
$ 1,912,335 $
$ $ 288,910
$ 25,728
$ 2,226,973
207 16-216

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208 16-217

STATISTICAL SECTION

This page left blank intentionally.
210 16-219

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 16-220

CITY OF NEWPORT BEACH
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
20141
20152
20163
20174
Governmental activities:

Net investment in capital assets
$ 2,148,942,928
$ 2,176,644,408
$ 2,193,773,102
$ 2,201,552,683
Restricted
59,998,344
45,689,702
44,033,677
45,753,736
Unrestricted
(184,990,765)
(150,532,773)
(130,468,268)
(133,461,197)
Total governmental activities
$ 2,023,950,507
$ 2,071,801,337
$ 2,107,338,511
$2,113,845,222
Business -type activities
Net investment in capital assets
$
115,948,522
$
113,914,514
$
117,055,576
$ 116,238,944
Unrestricted
13,160,611
21,756,124
23,430,189
28,890,311
Total business -type activities
$
129,109,133
$
135,670,638
$
140,485,765
$ 145,129,255
Primary government:

Net investment in capital assets
$
2,264,891,450
$
2,290,558,922
$
2,310,828,678
$ 2,317,791,627
Restricted
59,998,344
45,689,702
44,033,677
45,753,736
Unrestricted
(171,830,154)
(128,776,649)
(107,038,079)
(104,570,886)
Total primary government
$
2,153,059,640
$
2,207,471,975
$
2,247,824,276
$2,258,974,477
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.

The City of Newport Beach implemented GASB 96 for the fiscal year ended June 30, 2023. 212 16-221

CITY OF NEWPORT BEACH
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2018' 2019 2020 2021 2022 2023
$ 2,208,832,391 $ 2,218,040,304 $ 2,217,852,660 $ 2,227,572,605 $ 2,223,773,786 $ 2,256,305,577 49,791,908 56,426,811 67,708,225 67,189,020 78,100,496 79,152,428 (122,024,754) (102,035,181) (90,214,086) (72,301,558) (8,183,288) 20,117,377 $ 2,136,599,545 $ 2,172,431,934 $ 2,195,346,799 $ 2,222,460,067 $ 2,293,690,994 $ 2,355,575,382 $ 119,375,596 $ 119,346,350 $ 120,291,689 $ 124,775,772 $ 128,244,924 $ 131,015,969 29,183,382 30,331,669 30,276,662 27,039,499 28,559,633 26,701,049 $ 148,558,978 $ 149,678,019 $ 150,568,351 $ 151,815,271 $ 156,804,557 $ 157,717,018 $ 2,328,207,987 $ 2,337,386,654 $ 2,338,144,349 $ 2,352,348,377 $ 2,352,018,710 $ 2,387,321,546 49,791,908 56,426,811 67,708,225 67,189,020 78,100,496 79,152,428 (92,841,372) (71,703,512) (59,937,424) (45,262,059) 20,376,345 6 46,818,426 $ 2,285,158,523 $ 2,322,109,953 $ 2,345,915,150 $ 2,374,275,338 $ 2,450,495,551 $ 2,513,292,400 213 16-222

CITY OF NEWPORT BEACH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2014
2015
2016
2017
Expenses:

Governmental activities:

General government
$ 18,834,165
$ 24,558,041 $
19,335,275
$ 20,443,569
Public safety
87,676,062
96,945,872
91,046,455
102,494,314
Public works
42,953,118
45,774,939
45,443,988
54,039,601
Community development
10,283,481
10,073,248
9,943,868
12,056,086
Community services
21,357,271
22,418,287
22,700,052
26,583,440
Interest on long-term debt
7,888,192
7,711,334
7,615,094
7,472,188
Total governmental activities expenses
188,992,289
207,481,721
196,084,732
223,089,198
Business -type activities:

Water
22,037,284
21,175,954
21,605,197
22,004,013
Wastewater
3,368,656
3,452,398
3,818,165
4,218,926
Total business -type activities expenses
25,405,940
24,628,352
25,423,362
26,222,939
Total primary government expenses
214,398,229
232,110,073
221,508,094
249,312,137
Program revenues:

Governmental activities:

Charges for services:

General government
3,046,232
3,647,210
3,722,557
5,089,123
Public safety
19,124,113
19,386,017
19,108,222
19,899,242
Public works
5,517,103
5,276,991
5,319,510
5,214,426
Community development
8,043,390
8,608,645
8,419,588
10,838,114
Community services
13,270,316
13,667,775
13,964,018
13,653,466
Operating grants and contributions:
15,196,696
10,673,286
17,826,914
11,632,188
Capital grants and contributions:
563,786
38,157,665 1
2,717,504
27,993,317 1
Total governmental activities program revenues
64,761,636
99,417,589
71,078,313
94,319,876
Business -type activities:

Charges for services:

Water
29,397,882
27,705,129
24,499,952
25,371,307
Wastewater
3,438,670
3,326,362
3,065,762
3,161,114
Operating grants and contributions:
-
-
-
-
Total business -type activities program revenues
32,836,552
31,031,491
27,565,714
28,532,421
Total primary government program revenues
97,598,188
130,449,080
98,644,027
122,852,297
Net revenues (expenses):

Governmental activities
(124,230,653)
(108,064,132)
(125,006,419)
(128,769,322)
Business -type activities
7,430,612
6,403,139
2,142,352
2,309,482
Total net revenues (expenses)
$ (116,800,041)
$ (101,660,993) $
(122,864,067)
$ (126,459,840)
General revenues and other changes in net position:

Governmental activities:

Taxes:

Property tax
$ 79,889,346
$ 84,121,461
$ 91,516,611
$ 96,964,060
Sales tax
23,142,065
24,832,412
33,937,986
33,702,895
Sales tax in -lieu
7,727,876
8,046,424
2,870,474
-
Transient occupancy tax
18,176,369
20,369,158
21,083,199
22,382,361
Business license tax
4,156,130
4,141,282
4,024,386
4,149,016
Franchise tax
3,998,943
4,189,130
4,047,584
4,026,005
Othertaxes
216,604
354,919
327,009
358,209
Investment income
542,915
437,272
584,259
589,001
Net increase (decrease) in fair value of investments
53,783
61,337
376,311
-
Other
3,803,728
3,161,567
4,001,486
2,290,482
Transfers
-
-
-
(3,500,000)
Total governmental activities
141,707,759
149,714,962
162,769,305
160,962,029
Business -type activities:

Investment income
128,439
123,445
216,576
77,752
Net increase (decrease) in fair value of investments
18,199
34,921
148,527
-
Other
-
-
2,375,000
Capital contributions
22,516
-
Transfers
-
-
-
3,500,000
Total business -type activities
146,638
158,366
2,762,619
3,577,752
Total primary government
141,854,397
149,873,328
165,531,924
164,539,781
Changes in net position
Governmental activities
17,477,106
41,650,830
37,762,886
32,192,707
Business -type activities
7,577,250
6,561,505
4,904,971
5,887,234
Total primary government
$ 25,054,356
$ 48,212,335
$ 42,667,857
$ 38,079,941
1 Data varies from trend because of one-time receipt of developer contributions. 214 16-223

CITY OF NEWPORT BEACH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2018 2019 2020 2021 2022 2023
$ 19,011,099
$ 20,549,224
$ 20,714,050
$ 20,177,482 $
19,374,179
$ 26,911,510
107,647,562
111,556,065
119,194,302
119,184,958
104,767,466
121,309,057
47,615,000
53,339,878
60,054,860
63,689,155
65,031,715
75,904,138
12,377,394
11,493,204
12,842,020
12,157,226
9,664,500
13,048,442
27,307,115
27,758,097
26,668,079
28,214,205
24,508,702
27,937,349
7,381,743
7,187,971
7,064,521
7,321,612
6,877,577
6,666,044
221,339,913
231,884,439
246,537,832
250,744,638
230,224,139
271,776,540
23,724,918
26,898,075
27,387,120
28,943,243
27,117,471
30,701,834
4,158,155
4,222,228
4,291,755
5,223,245
4,094,448
5,343,891
27,883,073
31,120,303
31,678,875
34,166,488
31,211,919
36,045,725
5,355,887
5,887,265
3,846,962
2,914,007
3,625,809
12,386,628
20,733,883
21,979,376
22,232,248
22,038,904
23,156,703
26,273,944
5,789,579
5,778,441
5,054,694
5,067,478
7,538,103
8,770,525
9,956,226
9,902,445
9,599,848
10,491,970
11,119,757
11,269,905
13,974,329
13,556,360
16,936,285
17,601,288
22,302,788
15,753,446
11,943,941
14,021,506
14,659,016
20,361,620
16,800,039
20,131,513
1,815,464
6,638,356
7,352,407
7,658,387
8,693,429
5,809,562
69,569,309
77,763,749
79,681,460
86,133,654
93,236,628
100,395,523
26,931,193
26,843,751
27,100,429
30,739,726
32,104,202
32,033,631
3,445,772
4,069,265
4,110,815
4,618,186
4,825,249
4,666,685
-
-
-
-
116,629
-
30,376,965
30,913,016
31,211,244
35,357,912
37,046,080
36,700,316
99,946,274
108,676,765
110,892,704
121,491,566
130,282,708
137,095,839
(151,770,604)
(154,120,690)
(166,856,372)
(164,610,984)
(136,987,511)
(171,381,017)
2,493,892
(207,287)
(467,631)
1,191,424
5,834,161
654,591
$ (149,276,712)
$ (154,327,977)
$ (167,324,003)
$ (163,419,560) $
(131,153,350)
$ (170,726,426)
$ 101,593,290
$ 108,365,261
$ 113,313,535
$ 119,157,057 $
124,335,985
$ 138,358,730
36,373,253
37,168,063
36,232,969
38,956,275
46,164,860
46,552,459
22,857,737
24,697,446
21,097,384
16,886,197
26,677,331
30,201,649
4,282,935
4,428,440
4,882,419
4,481,349
4,363,145
4,901,385
4,228,469
4,286,496
4,394,156
4,204,224
4,561,278
4,996,526
3,346,987
2,633,720
2,592,369
4,166,549
4,333,071
181,800
632,808
2,644,319
2,621,488
2,603,982
1,995,214
3,208,250
-
2,234,249
2,520,033
(2,086,189)
(6,856,640)
(687,766)
3,416,348
3,495,085
2,116,884
3,354,808
2,644,194
5,552,372
176,731,827
189,953,079
189,771,237
191,724,252
208,218,438
233,265,405
184,906
713,970
732,099
525,295
345,218
520,736
-
612,358
625,864
(469,799)
(1,190,093)
(262,867)
24,961,223 35,832,389 22,914,865 27,113,268 71,230,927 61,884,388 215 16-224

CITY OF NEWPORT BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2014
2015
2016
2017
General fund:

Nonspendable
$ 16,316,499
$ 15,784,396
$ 15,210,896
$ 14,434,017
Restricted
3,939,751
5,389,810
3,083,133
3,797,009
Committed
12,782,235 1
11,847,852
2,726,020 2
10,570,638 3
Assigned
1,326,170
1,421,225
4,201,311
567,132
Unassigned
51,015,820 '
55,509,258
56,618,041
60,009,244
Total general fund
$ 85,380,475
$ 89,952,541
$ 81,839,401 2
$ 89,378,040 3
All other governmental funds
Nonspendable
$ 4,629,781
$ 4,669,269
$ 4,629,781
$ 4,666,256
Restricted
33,243,790
29,842,384
33,662,859
31,950,139
Committed
19,513,389
26,159,261
40,248,977
49,510,047
Unassigned
(14,291,969)
(12,495,729)
(15,422,984)
(6,308,331)
Total all other governmental funds
$ 43,094,991
$ 48,175,185
$ 63,118,633
$ 79,818,111
Total all governmental funds
$ 128,475,466
7138,127,726
$ 144,958,034
$ 169,196,151
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.
6 Data varies from trend due to additional funds set aside mainly in the Facilities Financial Planning Reserve Fund and Unrestricted Capital Improvements Fund.
216 16-225

CITY OF NEWPORT BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2018 2019 2020 2021 2022 2023
$ 14,050,930 $ 13,147,221 $ 11,864,115 $ 10,637,097 $ 9,407,143 $ 8,239,567 4,412,302 4,757,437 5,710,434 4,876,025 - 4 -
13,444,487 13,335,675 2,210,811 3,235,746 4,429,573 5,465,426 590,368 1,199,682 2,598,828 1,489,350 - 5 -
61,415,049 64,146,123 76,699,284 85,715,180 83,302,665 77,737,532 $ 93,913,136 $ 96,586,138 $ 99,083,472 $ 105,953,398 $ 97,139,381 $ 91,442,525 $ 4,787,243 $ 4,715,545 $ 4,646,529 $ 4,707,330 $ 4,690,430 $ 4,650,931 38,629,419 45,958,167 53,310,518 63,914,627 73,013,208 73,657,409 41,731,742 40,732,124 48,032,259 47,863,154 73,243,534 6 78,218,834 (376,162) (253) (50,137) (136,299) (119,371) (11,625)
$ 84,772,242 $ 91,405,583 $ 105,939,169 $ 116,348,812 $ 150,827,801 $ 156,515,549 $ 178,685,378 $ 187,991,721 $ 205,022,641 $ 222,302,210 $ 247,967,182 $ 247,958,074 $180,000,000
$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
Fund Balances
2022 2023
217
16-226

CITY OF NEWPORT BEACH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2014
2015
2016
2017
Revenues:

Taxes
$ 137,910,879
$ 146,664,903
$ 158,386,385
$ 162,184,218
Intergovernmental
16,825,839
11,813,208
17,262,147
17,073,653
Licenses, permits and fees
6,659,203
14,676,754
6,571,123
9,844,908
Charges for services
16,864,092
16,914,210
18,827,991
19,197,065
Fines and forfeitures
3,272,951
3,732,405
3,684,602
3,590,700
Investment income
1,136,062
928,729
1,157,539
772,546
Net increase (decrease) in fair value of investments
124,439
177,485
769,460
-
Property income
22,214,256
21,406,667
22,259,425
23,553,188
Donations
1,170,171
22,249,427
4,190,822
16,827,889
Special assessments
-
-
-
-
Other
1,400,048
6,984,418
2,982,924
2,277,322
Total revenues
207,577,940
245,548,206
236,092,418
255,321,489
Expenditures:

Current:

General government
14,471,167
14,060,512
14,629,672
15,086,397
Public safety
82,642,988
94,568,122
96,225,784
98,750,981
Public works
32,414,457
33,694,578
36,000,905
35,961,024
Community development
9,768,928
9,876,706
10,913,205
11,696,779
Community services
19,047,813
20,235,546
21,784,680
23,607,284
Capital outlay
33,572,193
47,169,671
31,934,463
30,822,972
Debt service:

Principal
4,091,000
4,183,000
4,272,000
4,401,000
Interest and fiscal charges
8,052,927
7,957,811
7,839,341
7,704,957
Total expenditures
204,061,473
231,745,946
223,600,050
228,031,394
Excess (deficiency) of revenues over (under)
expenditures
3,516,467
13,802,260
12,492,368
27,290,095
Other financing sources (uses):

Transfersin
41,223,727
53,281,956
48,523,132
45,342,446
Transfers out
(47,245,283)
(57,431,956)
(54,185,192)
(49,390,226)
Proceeds from sale
995,802
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)
Inception of subscription -based IT arrangements
-
-
-
-
Totalotherfinancingsources(uses)
(6,021,556)
(4,150,000)
(5,662,060)
(3,051,978)
Net change in fund balances
$ (2,505,089)
$ 9,652,260
$ 6,830,308
$ 24,238,117
Debt service as a percentage of
noncapital expenditures

6.9%

6.6%

7.2%

6.0%
1 Data varies from trend due to implementation of GASB 96 for the fiscal year ended June 30, 2023. 218 16-227

CITY OF NEWPORT BEACH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2018 2019 2020 2021 2022 2023
$ 171,982,240
$ 183,455,182
$ 182,983,069
$ 188,351,057
$ 211,259,402
$ 226,067,296
16,148,754
15,818,543
12,672,931
22,233,872
19,683,307
21,080,285
6,405,668
6,302,603
5,783,862
6,566,555
6,995,700
6,719,969
19,828,786
19,472,866
21,125,622
18,434,439
22,897,475
25,214,184
3,181,823
3,347,714
3,509,883
3,923,726
4,191,518
3,892,875
1,143,210
3,490,992
3,765,753
3,201,376
2,756,712
4,525,340
-
2,938,136
3,477,299
(2,634,682)
(8,900,762)
(465,873)
25,430,217
26,674,107
25,651,360
28,842,374
33,770,750
35,830,362
414,123
402,709
795,561
5,491,871
1,805,249
717,157
-
-
-
-
8,086,594
4,948,430
2,893,770
5,173,716
5,950,279
3,504,103
1,441,813
3,412,302
247,428,591
267,076,568
265,715,619
277,914,691
303,987,758
331,942,327
16,099,310
16,769,920
15,968,085
17,154,507
17,397,786
20,680,878
109,760,129
116,054,531
118,290,847
126,006,313
127,590,486
132,441,032
38,012,230
44,132,877
45,730,965
46,817,293
54,293,534
56,046,234
12,979,656
12,310,621
12,612,751
12,996,840
13,021,562
14,735,582
25,538,966
26,372,495
24,474,242
26,745,189
26,421,141
27,558,760
24,054,866
26,347,312
20,376,106
33,728,085
28,603,393
68,434,127
3,335,000
3,470,000
3,576,000
3,247,000
5,138,250
5,296,166
7,617,107
7,428,469
7,265,703
7,306,143
7,141,264
6,908,693
237,397,264
252,886,225
248,294,699
274,001,370
279,607,416
332,101,472
10,031,327
14,190,343
17,420,920
3,913,321
24,380,342
(159,145)
45,308,862
54,664,532
40,373,981
70,379,824
76,061,564
128,499,591
(45,850,962)
(59,548,532)
(40,763,981)
(65,965,012)
(74,776,934)
(128,879,043)
7,860,000
1,373,936
529,489 '

5.3% 4.8% 4.8% 4.2% 4.8% 4.5%
219 16-228

This page left blank intentionally.
220 16-229

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 16-230

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
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%
2023
60,461,442,254
7,647,078,297
1,489,884,026
1,731,351,434
71,329,756,011

7.13%

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 16-231

CITY OF NEWPORT BEACH
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
Fiscal Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
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

0.170

0.182

0.183

0.173

0.176

0.161

0.173

0.186

0.170

0.175
Total Overlapping Rate

0.251

0.229

0.230

0.220

0.223

0.208

0.205

0.233

0.218

0.222
Total Direct & Overlapping Rate
$ 1.251
$ 1.229
$ 1.230
$ 1.220
$ 1.223
$ 1.208
$ 1.205
$ 1.233
$ 1.218
$ 1.222
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 16-232

CITY OF NEWPORT BEACH
Principal Property Taxpayers
Current Year and Nine Years Ago
2023
2014
Percent of Total
Percent of Total
Taxable Assessed
City Taxable
Taxable Assessed
City Taxable
Taxpayer
Value
Rank
Assessed Value
Value
Rank
Assessed Value
The Irvine Company
$ 809,325,938
1 1.22%
$ 1,690,011,263
1 3.99%
PH Finance LLC
331,194,718
2 0.50%
N/A
-

0.00%
Fashion Island Retail LLC
295,013,622
3 0.44%
N/A

0.00%
Villas at Fashion Island LLC
281,699,380
4 0.42%
N/A

0.00%
Newport Center Residences LLC
196,027,123
5 0.29%
N/A

0.00%
HG Newport Owner LLC
189,243,673
6 0.28%
N/A

0.00%
520 Newport Center Drive LLC
186,829,357
7 0.28%
N/A

0.00%
Newport Bluffs LLC
171,078,970
8 0.26%
144,534,708
2 0.34%
650 Newport Center Drive LLC
169,210,202
9 0.25%
N/A
-

0.00%
Balboa Bay Club Ventures LLC
154,941,702
10 0.23%
106,618,895
6 0.25%
$ 2,784,564,685

4.17%
$ 1,941,164,866

4.58%
Source: HdL, Coren & Cone
224 16-233

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
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%
789,969
111,144,240

98.08%
2023
123,844,578
121,011,910

97.71%
- 3
121,011,910

97.71%
Net collections reflect deductions for refunds and impoundments. 2 Exclusive of penalty charges.
3 The total amount of Fiscal Year 2023 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 16-234

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226 16-235

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 16-236

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228 16-237

CITY OF NEWPORT BEACH
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Subscdption-
Fiscal
based
Year
Infonnation
Total
Ended
Certificates of
pre -Annexation
Technology
Governmental
June 30
Participation t
Agreement
CDBG Loan Leases s
Arrangements 3
Activities
2014
120,178,318
3,600,000
1,462,000 -
-
125,240,318
2015
117,197,765
2,400,000
1,339,000 -
-
120,936,765
2016
114,137,212
1,200,000
1,207,000 -
-
116,544,212
2017
110,956,659
-
1,066,000 -
-
112,022,659
2018
107,651,106
-
916,000 -
-
108,567,106
2019
104,220,553
-
756,000 -
-
104,976,553
2020
100,695,000
-
585,000 -
-
101,280,000
2021
106,781,026
-
403,000 -
-
107,184,026
2022
102,698,895
-
208,000 13,321,040
-
116,227,935
2023
98,616,764
-
- 12,274,149
2,235,132
113,126,045
Business -type Activities
Percentage of
Total Business -type
Total Primary
Personal
Debt Per
Leases 3 Activities
Government
Income
Capita z
- -
125,240,318

1.81%
1,442
- -
120,936,765

1.77%
1,386
- -
116,544,212

1.77%
1,383
- -
112,022,659

1.66%
1,319
- -
108,567,106

1.48%
1,245
- -
104,976,553

1.36%
1,204
- -
101,280,000

1.24%
1,181
- -
107,184,026

1.31%
1,248
1,512,574 1,512,574
117,740,509

1.34%
1,406
3,820,774 3,820,774
116,946,819

1.27%
1,402
Note: This schedule excludes claims and judgments, employee compensated absence, pension, OPEB, and Early Retirement Incentive Plan liabilities. Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Amounts include any applicable bond premium.
2 These ratios are calculated using personal income and population for the prior calendar year. 3 The GASB 87 and GASB 96 debts on this schedule are not money borrowed by the City, but are present -value calculations of estimated future payments by the City based on assumptions specified in GASB 87 and GASB 96. The City of Newport Beach implemented GASB 87 for the fiscal year ended June 30, 2022. The City of Newport Beach implemented GASB 96 for the fiscal year ended June 30, 2023.
229 16-238

Fiscal Year
Ended
June 30
Certificates of
Participation'
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
2023
98,616,764

CITY OF NEWPORT BEACH
Ratios of General Bonded Debt
Last Ten Fiscal Years
Amounts
Percent of
General
Restricted for
Assessed
Bonded Debt
Debt Service
Total
Value
Per Capita
(2,352,746)
117,825,572

0.28%
1,356
(2,350,210)
114,847,555

0.26%
1,316
(2,362,904)
111,774,308

0.24%
1,326
(2,364,034)
108,592,625

0.22%
1,279
(2,384,338)
105,266,768

0.20%
1,207
(2,362,228)
101,858,325

0.18%
1,168
(1,159,389)
99,535,611

0.16%
1,160
(2,255,795)
104,525,231

0.16%
1,217
(2,199,363)
100,499,532

0.15%
1,200
(2,183,979)
96,432,785

0.14%
1,156
' 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 16-239

CITY OF NEWPORT BEACH
Direct and Overlapping Debt
June 30, 2023
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 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 Agency):

TOTAL OVERLAPPING DEBT
DIRECT DEBT:

City of Newport Beach Certificates of Participation
Community Development Block Grant Loan
Leases (3)
Subscription -based Information Technology Arrangements (3)

TOTAL DIRECT DEBT

TOTAL DIRECT AND OVERLAPPING DEBT
GROSS COMBINED TOTAL DEBT (z)
Percentage
Applicable (')
$ 71,66,329,7 011
Outstanding Debt
6/30/23
Estimated Share of
Overlapping Debt

1.961 %
$
19,215,000
$
376,806

34.941%
920,781,084
321,730,119

2.693%
176,539,286
4,754,203

5.082%
149,820,000
7,613,852

14.964%
12,050,000
1,803,162
100.000%
6,785,000
6,785,000

73.345%
224,754,326
164,846,060

6.247%
418,970,373
26,173,079

2.757%
412,017,630
46,028,267
100.000%
100.000%
16,055,000
16,055,000
100.000%
8,230,000
8,230,000
100.000%
12,005,546
12,005,546
100.000%
3,410,000
3,410,000
100.000%
20,750,000
20,750,000

9.841%
451,165,000
44,399,148

9.841%
10,860,000
1,068,733

34.941%
1,480,000
517,127

34.941%
1,380,000
482,186

6.247%
46,436,043
2,900,860

70.918%
1,320,000
936,118
$
2,914,024,288
$
690,865,266
100.000%
$
102,698,895
$
102,698,895
100.000%
208,000
208,000
100.000%
16,094,923
16,094,923
100.000%
2,235,132
2,235,132
$
121,236,950
$
121,236,950
$ 812,102,216
812,102,216
(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 districts assessed value that is within the boundaries of the city divided by the districts 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. (3) The GASB 87 and GASB 96 debts on this schedule are not money borrowed by the City, but are present -value calculations of estimated future payments by the City based on assumptions specified in GASB 87 and GASB 96. The City of Newport Beach implemented GASB 87 for the fiscal year ended June 30, 2022.

The City of Newport Beach implemented GASB 96 for the fiscal year ended June 30, 2023.

Ratios to 2022-23 Net Assessed Valuation:

Total Overlapping Debt 0.97%
Total Direct Debt ($121,236,950) 0.17%
Gross Combined Total Debt 1.14%
Ratios to Redevelopment Incremental Valuation ($1,549,279,228):

Total Overlapping Tax Increment Debt 0.06%
Source: California Municipal Statistics, Inc.
231 16-240

CITY OF NEWPORT BEACH
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2014
2015
2016
2017
Assessed valuation
$ 42,341,162,463
$ 44,752,056,903
$ 47,388,470,098
$ 50,341,686,565
Conversion percentage
25%
25%
25%
25%
Adjusted assessed valuation
10,585,290,616
11,188,014,226
11,847,117,525
12,585,421,641
Debt limit percentage
15%
15%
15%
15%
Debt limit
1,587,793,592
1,678,202,134
1,777,067,629
1,887,813,246
Total net debt applicable to limit:

General obligation bonds
Legal debt margin
$ 1,587,793,592
$ 1,678,202,134
$ 1,777,067,629
$ 1,887,813,246
Total debt applicable to the limit
as a percentage of debt limit

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 16-241

CITY OF NEWPORT BEACH
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2018 2019 2020 2021 2022 2023
25% 25% 25% 25% 25% 25%
13,445,054, 005 14,425,290,445 15,186,201,639 15,922,416,670 16, 644, 932, 650 17,832,439,003 15% 15% 15% 15% 15% 15%
2,016,758,101 2,163,793,567 2,277,930,246 2,388,362,501 2,496,739,897 2,674,865,850 $ 2,016,758,101 $ 2,163,793,567 $ 2,277,930,246 $ 2,388,362,501 $ 2,496,739,897 $ 2,674,865,850

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
233 16-242

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234 16-243

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 16-244

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)
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

3.0%
2023
83,411
9,219,835
110,535

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:
(1) 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 16-245

CITY OF NEWPORT BEACH
Principal Employers'
Current Year and 9 years ago
2023
2014
Number of
Percent of Total
Number of
Percent of Total
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Hoag Memorial Hospital
5,437
1 6.72%
5,001
1 5.97%
Pacific Life Insurance
1,672
2 2.07%
1,074
4 1.32%
PIMCO
1,275
3 1.58%
1,179
2 1.41%
Irvine Management Company
1,015
4 1.25%
N/A
2 -
N/A
Glidewell Dental
881
5 1.09%
1,086
3 1.30%
City of Newport Beach
741
6 0.92%
736
7 0.90%
Balboa Bay Club and Resort
729
7 0.90%
480
9 0.59%
Tower Semiconductor
722
8 0.89%
671
8 0.82%
Newport -Mesa Unified School District
720
9 0.89%
845
6 1.04%
Resort at Pelican Hill
618
10 0.76%
900
5 1.10%
Marriott Newport Coast Villas
435
11 0.54%
N/A
2 -
N/A
CBRE Inc.
420
12 0.52%
N/A
2 -
N/A
' Figures reflect number of employees of employer at the time the information was collected. 2 Company listed was unable to provide employee data for 2014.

Source: Data obtained from companies listed and compiled by City Finance Department. 237 16-246

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238 16-247

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 16-248

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240 16-249

CITY OF NEWPORT BEACH
Full-time City Employees by Function
Last Ten Fiscal Years
Fiscal Year
Function
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
General government
79 78
77 77
79 80
78 80
81 85
Public safety
366
370
374
371
372
375
375
376
376
377
Community development
53 52
52 52
53 53
53 52
53 56
Public works
119
109
104
99 98
96 99
98 98
102
Community services
74 75
79 81
79 78
78 78
78 79
Water
32 31
32 31
33 33
33 33
33 32
Wastewater
13 13
12 13
11 11
11 11
11 11
Total
736
728
730
724
725
726
727
728
730
741
Source: City Finance Department
241 16-250

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
2014
2015
2016
2017
2,794
3,472
3,158
3,178
51,609
59,753
64,762
69,246
356
305
300
247
3,352
1,281
1,201
1,216
2,408
2,711
1,890
1,439
37,607
27,175
27,000
20,490
294,000
303,152
305,000
425,000
13,956
13,740
14,000
13,500
72 187
194
229

15.96 16.39

11.66 13.80
22 20
17 41
245
260
250
202
1,689,870 1,610,818 1,575,000 1,464,640
1 Data varies with trend due to inclusion of responses to fires, hazardous materials, medical and other e 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
16-251

CITY OF NEWPORT BEACH
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
2018
2019
2020
2021
2022
2023
3,266
3,520
3,093
2,872
2,650
2,800
56,685
67,048
73,372
86,439
83,307
85,003
248
209
11,913
12,204
13,251
13,486
1,307
1,033
2,842
475 2
3,015 s
2,807
1,403
1,402
913
920
901
903
22,925
14,840
11,729
7,805
13,590
12,885
437,751
469,959
439,954
455,442
392,605
454,418
13,071
13,386
9,300
6,287
8,805
10,048
210
210
256
160
252
184

14.07 13.75

13.44 14.87

14.28 11.06
137
46 10
25 3
12 211
196
221
240
209
178
1,424,594 1,376,041 1,084,206 1,043,629 1,195,151 1,172,951 243 16-252

CITY OF NEWPORT BEACH
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2014
2015
2016
2017
Police:

Stations
1 1
1 1
Fire:

Fire Stations
8 8
8 8
Lifeguard Headquarters
1 1
1 1
Public works:

Streets (miles)
395
395
399
400
Streetlights
5,977
5,977
5,978
5,978
Traffic Signals
808
808
808
808
Recreation & Senior Services:

Parks
64 64
64 64
Community Centers (includes leased property)
14 14
15 15
Aquatic Center
1 1
1 1
Water:

Water Mains (miles)
298.37
299.58
299.77
300.64
Maximum Daily Capacity (thousands of gallons)
27,704
27,800
27,800
27,800
Wastewater:

Sanitary Sewers (miles)
202.62
202.64
202.75
202.72
Storm Sewers (miles)

70.62 94.14

92.08 94.74
Library Services:

Libraries
4 4
4 4
Source: City of Newport Beach
244 16-253

CITY OF NEWPORT BEACH
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2018
2019
2020
2021
2022
2023
1 1
1 1
1 1
8 8
8 8
8 8
1 1
1 1
1 1
400
400
400
400
400
401
5,978
5,971
5,972
5,973
5,974
5,974
808
808
808
808
808
808
64 65
65 65
66 66
15 15
15 15
14 14
1 1
1 1
1 1
300.30
300.88
300.82
301.23
301.13
301.48
27,800
27,800
27,800
27,800
27,800
27,800
203.56
203.99
204.10
204.13
204.30
204.72

95.12 95.35

95.89 96.18

97.37 97.81
4 4 4 4 4 4
245 16-254

CITY OF NEWPORT BEACH
Water Sold by Type of Customer
Last Ten Fiscal Years
(in hundred cubic feet)
Fiscal Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Type of Customer:

Residential
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
3,242,477
Commercial
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
1,728,975
Government
455,251
396,605
263,116
305,214
289,738
256,398
270,638
299,442
314,128
256,850
Total
6,882,427
6, 110,791
5, 883,077
6, 112,369
6, 994,919
5, 771,865
6, 999,906
6, 442,482
6, 006,461
5, 228,302
Total direct rate
per 100 cubic ft.
$ 3.08
$ 3.08
$ 3.08
$ 3.08
$ 3.08
$ 3.08
$ 3.11 ' $

3.35 2 $

3.60 3 $

3.87 4
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 4 Reflects increase in commodity rate effective January 1, 2023 Source: City Utilities Department
246 16-255

CITY OF NEWPORT BEACH
Utility Rates'
Last Ten Fiscal Years
Fiscal Year
Ended June
Monthly
Rate per
30 Base Rate
100 cubic ft
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
2023

33.77 4.41
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 16-256

Water Customer

CITY OF NEWPORT BEACH
Major Water Customers
Current Year and Nine Years Ago
2023 2014
Percent of Total Percent of Total
Water Charges Rank Water Revenues Water Charges Rank Water Revenues Irvine Company Apartment
$ 1,658,396
1 5.15%
174,110
1 0.59%
Irvine Company Office
1,467,007
2 4.55%
162,074
2 0.55%
Irvine Company Retail
969,032
3 3.01%
61,656
10 0.21%
Hoag Memorial Hospital
825,308
4 2.56%
116,000
4 0.39%
Big Canyon Country Club
762,625
5 2.37%
189,865
8 0.65%
Newport Beach Country Club
608,127
6 1.89%
143,220
3 0.49%
Bluffs Homeowners Association
601,795
7 1.87%
97,532
5 0.33%
Pacific View - Pierce Bros.
576,369
8 1.79%
60,863
13 0.21 %
Newport -Mesa Unified School District
546,769
9 1.70%
96,685
6 0.33%
UDR Newport Beach
542,831
10 1.68%
84,187
9 0.29%
Park Newport Ltd
418,429
11 1.30%
91,178
7 0.31 %
Villa Balboa Community Association
361,111
12 1.12%
38,440
14 0.13%
Lido Peninsula Resort
326,136
13 1.01%
18,628
30 0.06%
Newport Dunes Resort
265,230
14 0.82%
43,708
16 0.15%
Jasmine Creek Community Association
262,668
15 0.82%
48,169
11 0.16%
$ 10,191,833

31.63%
$ 1,426,315

4.85%
Source: City Revenue Division
248 16-257

16-258

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City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
(949) 644-3123
www.newportbeachca.gov/acfr
16-259

Attachment B
Auditor's Required Communications with the Audit Committee 16-260

*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, 2023, and have issued our report thereon dated December 27, 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 June 27, 2023, 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 assisting in preparation of the financial statements, recording journal entries detected during the audit process, assisting in updating 16-261

The Honorable Mayor and
Members of the City Council
City of Newport Beach
Newport Beach, California
infrastructure records and assisting in preparation of the State Controller's Report. To mitigate the risk, management has reviewed the financial statements and compared amounts to the accounting records, 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 Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription -Based Information Technology Arrangements. We reviewed City's inventory of subscriptions, reviewed a sample of subscription agreements, tested the calculations of the subscription transactions, and ensured the City's subscription disclosure footnotes are 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 7 to the financial statements, the City changed accounting policies related to leases by adopting GASB Statement No. 96, Subscription -Based Information Technology Arrangements. 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:
2 16-262

The Honorable Mayor and
Members of the City Council
City of Newport Beach
Newport Beach, California
• Management's estimate involving the calculation of the pension liability. • Management's estimate involving the calculation of the other post -employment benefit (OPEB) liability.
• 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 pensions in Note 11 and other post -employment benefits in Note 12. 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 16-263

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 December 27, 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
December 27, 2023
4 16-264

Attachment C
Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
16-265

*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
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, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 27, 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 or significant deficiencies may exist that were not identified.
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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
December 27, 2023
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Newport Beach City CouncilJanuary 23, 2024

Newport Beach City Council
January 23, 2024