FISCAL YEAR 2026-27
PLANNING SESSION
January 31, 2026
AGENDA
2 •Update on Financial Status and Budget
•City Initiatives
•Updates on Advanced Planning and Land Use
•Updates on Public Works and Capital Improvement
•Public Comments on Non-Agenda Items
UPDATE ON FINANCIAL STATUS
3 GENERAL FUND REVENUES
4 48%
15%
10%
21%
6%
Fiscal Year 2026-27Historical
$333
$338
$350
$320
$340
$360
2024-25
Actual
2025-26
Projected
2026-27
Projected
Millions
$123 $128
$138
$146
$154
$163
$170
$90
$110
$130
$150
$170
$190
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Projected
2026-27
Projected
Millions
5 Property tax revenue, the City’s largest source of revenue, is projected to increase by $7 million (4.5%) due to an increase in assessed values related to the Proposition 13 inflationary adjustment and due to changes in ownership and new construction.
+4.3% +7.7%
+5.6%
+5.5%
+5.8%
+4.5%
PROPERTY TAX REVENUE
6 PROPERTY TAX REVENUE
The City receives 17% of the 1% property tax.
• Each city’s percentage of the 1% varies.
• Newport Beach has the third highest city-share of
the 1% property tax in Orange County, behind
Santa Ana and Laguna Beach.
• A higher share of the total tax, combined with
higher assessed values than many surrounding
cities, significantly contributes to the City’s fiscal
stability.
• The City’s assessed valuation is the second largest in Orange County (behind Irvine).
• Citywide assessed values are projected to reach $88
billion in FY 2026-27.
17%
67%
7%9%
City of Newport Beach
Schools
County of Orange
Special Districts
PROPERTY TAX REVENUE BY CATEGORY
& RESIDENTIAL SALES TRENDS
7 85%
11%2%3%
Property Tax Revenue by
Category
DETACHED SINGLE-FAMILY HOMES
MEDIAN SALES PRICE HISTORY
YEAR SALES MEDIA N PRICE CHA NGE %
2021 1,414 $3,200,000 23.31%
2022 833 $3,736,500 16.77%
2023 687 $3,845,000 2.90%
2024 705 $3,976,000 3.41%
2025 712 $3,994,500 0.47%
$39
$46 $47
$43
$46
$49 $50
$30
$35
$40
$45
$50
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Projected
2026-27
Projected
Millions
SALES TAX REVENUE
8 Sales tax revenue, the City’s second largest revenue source, is projected to increase by $1 million (2%), primarily due to anticipated growth in autos & transportation and restaurants & hotels.
+18.5%
+0.8%
-6.7% +5.7%
+6.2%
+2.0%
Autos &
Transportation
Restaurants &
Hotels
General Consumer
Goods
State & County
Pools
SALES TAX REVENUE
MAJOR INDUSTRY GROUPS
9 24/25 25/26 26/27 24/25 25/26 26/27 24/25 25/26 26/27 24/25 25/26 26/27 Fiscal Years 2024/25, 2025/26 & 2026/27
$11.0 $10.8
$9.5
$7.3
$12.3
$11.1
$9.9
$8.1
$12.6
$11.4
$10.0
$8.3
$0
$2
$4
$6
$8
$10
$12
$14Millions
$17
$27
$30
$32 $33 $33 $33
$10
$15
$20
$25
$30
$35
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Projected
2026-27
Projected
Millions
TRANSIENT OCCUPANCY TAX
10 Transient Occupancy Tax (TOT) revenue, the City’s third-largest revenue source, is projected to decrease by $0.3 million, net of payments to VNB, or 0.9%. The projected decline is primarily driven by reduced international tourism. +13.2%
+58.0%
+5.1%
+4.5% -1.1% -0.9%
TRANSIENT OCCUPANCY TAX
COMMERCIAL vs. RESIDENTIAL
11 Commercial vs. Residential Transient Occupancy Tax
Revenue
$313
$336
$344
$300
$320
$340
$360
2024-25
Actual
2025-26
Projected
2026-27
Projected
Millions
GENERAL FUND EXPENDITURES
12 58%
28%
10%
4%
Fiscal Year 2026-27Historical
+7.3%
+2.4%
13 GENERAL FUND EXPENDITURES
BY DEPARTMENT
FY 2026-27 PRELIMINARY
GENERAL FUND EXPENDITURE
OUTLOOK
14 While next year’s budget is still under development, preliminary estimates for General Fund operating expenditures show an increase of $8 million, or 2.4%.
This includes $5 million for employee wages and benefits, $5 million for operating costs, and a $2 million reduction related to operating transfers.
Cost adjustments for specific services and program enhancement requests are currently under evaluation and are not yet reflected in the expenditure outlook.
FY 2026-27 PRELIMINARY
CAPITAL FUNDING OUTLOOK
15 Considering inflationary impacts and significant upcoming projects, it is recommended that the capital funding in the proposed FY 2026-27 General Fund budget be maintained at the following levels to address the city’s long-term capital needs.
FY 2025-26 FY 2026-27
General Fund Capital Improvement Fund $6.5 M $ 6.5 M
Tidelands Capital Fund (HBMP) $5.8 M $ 6.1 M
Facilities Financing Plan Fund $15.3 M $15.6 M
Facilities Maintenance Fund $2.5 M $ 2.5 M
Park Maintenance Fund $2.3 M $ 2.3 M
Capital Funding in Original Budget $32.4 M $33.0 M
FY 2024-25 Year-End Surplus Funds $13.8 M $ -
Total Capital Funding $46.2 M $33.0 M
PENSION PAYDOWN STRATEGY
16 Pension paydown strategy (annual review)
• The Finance Committee reviewed the strategy in November 2025 and recommended:
• Targeting a 95% funded status
• Continuing to commit $45 million per year toward UAL
reduction
• By contributing $45 million per year - $15 million above the required amount - the City can eliminate its pension liability by 2033.
• The FY 2026–27 budget includes $40 million for pension paydown, with an additional $5 million available at budget adoption or from the year-end surplus.
17 Questions and
Comments
CITY INITIATIVES
18 RESILIENCY INITIATIVE
19 48%
15%
10%
21%
6%
• Communication
• Tsunami warning system expansion
• Telecom expansion
• Public information
• Backup Power Connection
• Community centers
• Jr. Guard Building public facilities
• Emergency Management
• Emergency evacuation routes and redundancy
• Training and readiness
• Cybersecurity for City systems
CRIME PREVENTION
PUBLIC SAFETY
20 CRIME PREVENTION
21 48%
15%
10%
21%
6%
Staffing Priorities
• Partnering with The Irvine Company to increase our police presence at Fashion Island
• Continue to provide police presence at Corona del Mar State Beach and provide a security presence during evening hours
Animal Shelter
• Working with the Recreation and Senior Services Department on how to best provide excellent animal shelter services
FOURTH OF JULY PREPARATION
22 48%
15%
10%
21%
6%
Staff is proposing municipal code updates to:
• Expand the Safety Enhancement Zone
• Modify shade structure rules for the beaches
• Enhance Short Term Lodging rules
• Require the owner or owner’s agent and renter to respond within two hours of a violation
• Impose a mandatory one strike revocation rule for certain offenses
When appropriate, the Council could adopt a resolution declaring a Safety Enhancement Zone during the spring break period.
FOURTH OF JULY PLANNING
23 48%
15%
10%
21%
6%
Staff is planning operational changes including:
• Increasing outside agency assistance
• Deploying a mobile booking station
• Partnering with Hoag Hospital
• Improving social media messaging
• Working with Caltrans / CHP on congestion relief
• Moving staging to City Corp Yard
The NBPD and other City departments will continue to collaborate for enforcement (short term lodging, bar occupancy, street vendors, parking).
24 Questions and
Comments
TECHNOLOGY AND
COMMUNICATION
25 TECHNOLOGY AND COMMUNICATION
26 48%
15%
10%
21%
6%
Artificial Intelligence Integration
• Initial Use Cases
• Staff report writing, general research, and data analysis • Initial Tools
• ChatGPT - General-purpose AI assistant
• Madison AI - Designed specifically for local government
Social Media Engagement
• Retained new consultant
• Initial focus - reach target audiences for Fourth of July / Spring Break • Next steps - increase public safety messaging and highlight what makes Newport Beach unique
27 Questions and
Comments
HARBOR DEPARTMENT
28 BALBOA YACHT BASIN MARINA
29 BALBOA YACHT BASIN MARINA
MANAGEMENT
30 48%
15%
10%
21%
6%
Recommendation
Propose the Harbor Department manages the City-owned marina and garages at the Balboa Yacht Basin rather than contracting with a third- party operator.
Why This Matters
Direct City management provides public value, accountability and cost efficiencies while maintaining quality service.
Key Takeaway
The Harbor Department provides superior customer service and ongoing savings while keeping City control of a major public asset.
BALBOA YACHT BASIN MARINA
MANAGEMENT BENEFITS
31 48%
15%
21%
6%
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Harbor Department Proposer A Proposer B
Cost Comparison - FY27
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Harbor Department Proposer A Proposer B
Cost Comparison - Five Year Indexed
32 Questions and
Comments
UPDATES ON COMMUNITY
DEVELOPMENT AND PROJECTS
33 CUSTOMER SERVICE
34 48%
15%
10%
21%
6%
Expectation
• Platinum-level customer service
• Plan Review: 80% of plans reviewed in one day
• Inspection: 99% scheduled next day
Customers
• 2025: 18,251 In-Person / 10,203 Online
Excellent Good Satisfactory Needs
Improvement
Quality 2024
2025
89%
90%
5%
3%
1%
1%
5%
6%
Courtesy 2024
2025
93%
92%
4%
4%
2%
1%
2%
2%
Time 2024
2025
78%
81%
12%
7%
3%
5%
5%
6%
Completeness 2024
2025
90%
90%
4%
4%
2%
1%
3%
4%
2024: 448 surveys 2025: 482 surveys
HOUSING DEVELOPMENT
35 48%
15%
10%
21%
6%
Housing Application Projects Units
Preliminary Applications 2 375 units [15 affordable]
Applied [Overlay] 7 1,686 [88 affordable]
Entitled [Overlay] 7 1,947 units [105 affordable]
Entitled [Pre-Overlay] 8 2,030 units [199 affordable]
TOTAL 24 6,038 Units [407 affordable)
CUSTOMER SERVICE
IMPROVEMENTS
36 48%
15%
10%
21%
6%
Time
• High number of projects
• Two counters: one virtual and one in person
• Increasing complexity of building inspections
Revisions
• Online plans require coordination for intake and distribution Project Review Delays
• Inefficiencies in interdepartmental reviews
• Permit Streaming Act and Housing Accountability Act considerations Solutions
• Customer service training
• Prioritizing revisions
• Expand use of permitting software to all departments involved • Expand software licensing to expand use of consultants • Recruit & retention of experienced building inspectors
COMPLETING THE GENERAL
PLAN UPDATE
37 • First comprehensive update since 2006
• Started in 2019 and pivoted to housing, restarted in 2022 • Drafted with help of 24-member GPAC and 3-member GPUSC Next Steps:
• February – April 2026: City Boards, Commissions and Committees formal review
• May 2026: City Council review and possible adoption
WIRELESS STREAMLINING AND
IMPROVEMENTS
38 • Modernize City’s wireless ordinance (last updated
2014)
• Streamline review for installations in public right-
of-way and on City property
• Improve regulations for installations on private
property
Next Step:
March 2026: Planning Commission review
CDM CORRIDOR STUDY
IMPLEMENTATION
39 January – June 2026:
• Initiate code amendments to incentivize priority uses • Kick-off pilot programs
June – December 2026:
• Public hearings for code amendments
• Complete plans for infrastructure improvements
• Launch parking phone application
May 2027:
• Trolley service to Corona del Mar starts
40 CDM INFRASTRUCTURE IMPROVEMENTS
MacArthur Blvd. Intersection Orchid/Coast Highway Intersection Bulbouts
Wayfinding and Trolley Signage Parking Technology Signage
NEWPORT COAST LCP ADOPTION
41 • Annexed in 2001
• Building permit authority transfers to City after buildout • Coastal Development Permit authority remains with County • Split jurisdiction causing problems and dissatisfaction
7TH CYCLE HOUSING PERIOD
JUNE 30, 2029 – OCTOBER 15, 2037
42 HCD
determines
regional
need
Develops
methodology
for distribution
to all local
jurisdictions
Must identify
sites for
potential
housing, and
update GP and
Zoning
Local input to
develop
regional
projections for
housing,
population,
employment,
etc.
2026- 2027 2027 2027-2028 2028-2029
43 Questions and
Comments
44 PUBLIC WORKS AND CAPITAL
IMPROVEMENT PROGRAM
PUBLIC WORKS CUSTOMER SERVICE
ENHANCEMENTS
45 48%
15%
10%
21%
6%
Development Processing Section
• Recruiting principal engineer to oversee/manage PW Development Section and re- assigning senior engineer to Capital Project Delivery Program • Requesting additional associate engineer in FY 2026-27 budget Storm Water Quality, Harbor/Ocean Tidelands Management Section • Re-positioned administrative manager position to manage/oversee section Capital Project Delivery Program
• Re-positioned assistant city engineer position to Capital Project Delivery Program • Re-position senior engineer position from Development into Capital Project Delivery Program
• Requesting additional associate engineer in FY 2026-27 budget (for water & sewer related projects)
PROGRAM COST ADJUSTMENTS
46 48%
15%
10%
21%
6%
Facility Maintenance Master Program (FMMP)
• City dedicates $2.5 million / year to CIP for major facility maintenance and upkeep.
Fund balance reserves can be used to fund projects and catch up on backlog.
Refuse Collection/Disposal Program
• The County will be significantly adjusting landfill disposal rates (WISE agreement to Council ~ April 2026).
− ~ $1,500,000 per year starting in FY 2026-27
(from $9,568,081 to $11,120,420)
− ~ $2,500,000 per year starting in FY 2029-30 (from $9,568,081 to $12,060,244) Miscellaneous Capital Program Needs
• Additional $300,000 per year (for 3 years) into FY 2026-27 CIP for 7th Cycle Housing Element.
• Additional of $500,000 one-time funds into FY 2026-27 CIP for Corona del Mar Village Improvements.
HOW PROJECTS ARE SELECTED FOR CIP
47 48%
15%
10%
21%
6%
• Identified by Council, Community or Staff
• Developed to Support Council Goals, Objectives, Priorities • Required by Federal, State Law, or Legal Action
• Included in City Master Plans such as:
• Facilities Financing Plan
• Harbor & Beaches Master Plan
• Pavement Management Plan
• Bicycle Master Plan
• Water Master Plan
• Sewer Master Plan
48 MCFADDEN PLAZA AND NEWPORT PIER
REHABILITATION PROJECT
• FY 2025-26 CIP: $1.65 million budgeted to initiate effort (Tidelands Funding).
• Council Working Group (Stapleton, Blom): Conducted preliminary outreach with businesses/property owners; no vision concurrence identified.
• Recommendation: De-program project and funding for now; reconsider broader area or a pier & lifeguard building project in future years.
FACILITIES FINANCING PLAN
49 48%
15%
10%
21%
6%
• City owns/maintains a lot of buildings and facilities, many of significant size and cost.
• The Facility Financing Plan (FFP) - Plans for the construction or reconstruction/replacement of large City facilities which will require significant funding, typically over $1 million, and often require saving for many years to fund.
• Plan funding comes from new development fees and an annual General Fund contribution, which is set at 3% of total General Fund Revenues.
50 CURRENT FACILITIES FINANCING PLAN
Project Planning Worksheet L ast U pdated 01/29/2026
A ctive Projects Curre nt A ge From: 2026
Re f N ew /R eplacement F unction Project Y r B uilt / Refurb OG yr
B uilt Repl Sq F t
E st $/Sq
Ft 2026
Us e f u l
Li f e
Ye a r s t o
Start Project E stimate
FY
De s ign
Ye a r
F Y Const
Start
Ye a r
F V Cost E st @
2.5% Growth
Private
Contribtions
Net Proposed
Cost
4 R Ge n Go v 15th Street B each R estroom 1961 1961 1,100 1,200 65 60 1 1,320,000 2024 2027 1,353,000 1,353,000 7 R R ec Facility B onita C reek - A rtificial T urf R eplacement 2015 2015 1,700,000 12 11 10 1 2,040,000 2026 2027 2,091,000 2,091,000 40 N R ec Facility L ow er C astaw ay s Park TBD TBD 2 26,500,000 2026 2028 27,841,563 27,841,563 8a R Police Police Station 1973 1973 75,000 1,827 53 60 3 137,000,000 2026 2029 147,534,016 147,534,016 8b N Police Police Parking Structure TBD TBD 275 90,909 3 25,000,000 2026 2029 26,922,266 26,922,266 37 N Ge n Go v PC H Ped B ridge at S uperior TBD TBD 3 27,000,000 2027 2029 29,076,047 21,807,035 7,269,012 12 R Fire F S 3 - S anta B arbara 1971 1971 13,500 1,400 55 60 5 18,900,000 2029 2031 21,383,615 21,383,615 38 R R ec Facility Grant Howald - A rtificial T urf R eplacement 2021 2021 66,000 12 5 10 5 792,000 2030 2031 896,075 896,075 9 R R ec Facility Newport T heatre A rts C enter 1973 1973 7,950 900 53 60 7 7,155,000 2030 2033 8,505,047 4,252,523 4,252,523 11 R R ec Facility L awn B owling Facility (San Joaquin Hills Park) 1974 1974 2,750 800 52 60 8 2,200,000 2031 2034 2,680,486 2,680,486 5 R M unicpal Operations C orporation Y ard (B ldg B & W arehouse) - Phase 2 TBD 40 8 7,000,000 2032 2034 8,528,820 8,528,820 3 R R ec Facility A rroyo Park Synthetic T urf Field 2024 2024 102,500 12 2 10 8 1,230,000 2032 2034 1,498,636 1,498,636 13 R Fire L ifeguard H Q R eplacement 1988 1965 3,000 1,400 38 50 12 4,200,000 2035 2038 5,648,533 5,648,533 15 R R ec Facility C ommunity Y outh C enter (C Y C ) - G rant H owald 2008 1988 5,658 850 18 30 12 4,809,300 2035 2038 6,467,974 6,467,974 10 R Fire FS 6 - M ariners (living area rebuild) 2009 1957 3,000 1,400 17 30 13 4,200,000 2036 2039 5,789,746 5,789,746 14 R R ec Facility C arroll B eek C enter 2010 1980 1,500 900 16 30 14 1,350,000 2037 2040 1,907,515 1,907,515 31 R Police A nimal Shelter 2022 1955 2,320 850 4 30 26 1,972,000 2049 2052 3,747,377 3,747,377 17 R R ec Facility C liff Drive C ommunity R oom 2022 1960 761 900 4 30 26 684,900 2051 2052 1,301,510 1,301,510 18 R Fire F S 4 - B alboa Island 1994 1994 4,600 1,400 32 60 28 6,440,000 2051 2054 12,857,428 12,857,428 16 R R ec Facility B onita C reek C ommunity C tr. 2024 1988 2,876 850 2 30 28 2,444,600 2051 2054 4,880,632 4,880,632 19 R Fire FS 8 - Np t. Co a s t 2002 1995 7,000 1,400 24 60 29 9,800,000 2052 2055 20,054,792 20,054,792 20 R L ibrary L ibrary-C entral 2013 1997 65,000 850 13 60 31 55,250,000 2054 2057 118,787,874 118,787,874 2 R R ec Facility Newport C oast Pickleball C ourt 2024 2024 28,700 45 2 40 38 1,291,500 2062 2064 3,300,664 3,300,664 21 R L ibrary L ibrary-M ariners 2006 2006 15,300 850 20 60 40 11,478,750 2063 2066 30,821,177 30,821,177 22 R Fire FS 7 - SAH 2007 2007 11,000 1,400 19 60 41 15,400,000 2064 2067 42,383,733 42,383,733 23 R R ec Facility Newport C oast C ommunity C tr. 2007 2007 16,900 850 19 60 41 14,365,000 2064 2067 39,535,216 39,535,216 39 R R ec Facility C D M C oncessions/L G H Q 2007 2007 2,338 850 19 60 41 1,987,300 2064 2067 5,469,428 5,469,428 24 R R ec Facility Girls & B oys C lub (E ast B luff Park) 2019 1971 11,800 850 7 50 43 10,030,000 2066 2069 29,001,946 29,001,946 25 R R ec Facility OASIS Sen io r Ctr. 2010 2010 43,200 850 16 60 44 36,720,000 2067 2070 108,831,033 108,831,033 26 R Ge n Go v C ivic C enter 2013 2013 123,000 850 13 60 47 104,550,000 2070 2073 333,691,935 333,691,935 27 R Ge n Go v C ouncil C hambers 2013 2013 5,600 850 13 60 47 4,760,000 2070 2073 15,192,478 15,192,478 28 R R ec Facility M arina Park 2015 2015 24,390 850 11 60 51 20,731,500 2074 2077 73,037,830 73,037,830 29 R Fire F S 6 - M ariners (apparatus bay only ) 2018 2018 1,436 1,400 8 60 52 2,010,400 2075 2078 7,259,780 7,259,780 30 R Fire/L ibrary F S 5 and C D M L ibrary 2019 2019 10,300 1,400 7 60 53 14,420,000 2076 2079 53,374,046 53,374,046 32 R Fire FS 2 - Fire Sta tio n No 2 2022 2022 11,600 1,400 4 60 56 16,240,000 2080 2082 64,732,516 64,732,516 33 R Fire Newport Jr. G uard B uilding 2024 2024 5,400 850 2 60 58 4,590,000 2081 2084 19,221,925 19,221,925 1 R L ibrary L ecture H all 2025 2025 9,814 2,500 1 60 59 24,535,000 2082 2085 105,315,943 105,315,943 34 R Ge n Go v C ivic C enter Parking Structure (450 Stalls) 2013 2013 450 22,000 13 75 62 9,900,000 2085 2088 45,763,038 45,763,038 6 R Fire/L ibrary F S 1 - Peninsula/B alboa L ibrary TBD 2028 10,877 1,400 -2 60 62 16,000,000 2085 2088 73,960,466 73,960,466 To t a l 1,484,587,547
U nfunded/U napproved Potential Projects
A M unicpal Operations Utilities Y ard/A dmin B ldg 1970 1970 4,500 850 56 60 4 3,825,000 2028 2030 4,222,084 4,222,084 B M unicpal Operations C orporation Y ard/A dmin B ldg 1984 1984 3,400 850 42 60 18 2,890,000 2041 2044 4,507,414 4,507,414 C N R ec Facility C ity A quatic C enter TBD TBD 1 40,000,000 TBD TBD 40,000,000 D R ec Facility W est Newport C ommunity C enter TBD TBD 11,000 1,500 16,500,000 TBD TBD 16,500,000 To t a l 65,229,498
FFP A ctive Projects Tota l a s of 2/27/2025 1,399,339,890.00 TOTAL REP LAC EMENT 1,422,554,706 FFP A ctive Projects Tota l a s of 1/29/2026 1,484,587,547.21 TOTAL NEW 62,032,841 Net A ctive Project Increase 85,247,657.21 TOTAL P ROJEC T C OS T 1,484,587,547 51 Facility Finance Plan as currently approved for FY 2025-26 • Aquatic Center at Lower Castaways Park (ref #40) cost ~ $47M Scheduled to start design 2025, construction 2027
• New Police Station (ref #8) cost ~ $96M
Scheduled to start design 2030, construction 2033
• New Fire Station No. 3 (ref #12) cost ~ $18.9M
Scheduled to start design 2032, construction 2035
SOME PROJECTS CURRENTLY IN THE FFP
NEEDING PROGRAMING REVIEW
52 AQUATIC CENTER AT LOWER CASTAWAYS PARK
• Formed Council Ad Hoc Committee (Stapleton, Blom, Barto) to review/explore aquatic center at Lower Castaways
• Reviewed concepts for Lower Castaways Park and evaluated Bonita Creek Park as potential locations
• Eliminated both sites due to site constraints and community opposition
One Concept for Bonita Creek
Park
One
Concept
for Lower
Castaways
53 A REVISED LAYOUT AT LOWER CASTAWAYS PARK
Draft concept for further consideration and FFP programming:
54 A REVISED LAYOUT AT LOWER CASTAWAYS PARK
“Harbor-centric” concept is estimated to cost around $26.5 million Propose:
• Replacing aquatic center in FFP (Ref # 40) with this park concept • Move aquatic center to “Unfunded/Unapproved Potential Projects” If Council desires to move forward with this park:
Reallocate $500,000 in FY 2025-26 CIP from Lower Castaways Aquatic Center to Lower Castaways Park
Direct staff / consultant to proceed with concept development, environmental documents and return to Council for final concept approval prior to Coastal Commission permitting and final construction plan preparation.
55 CONSTRUCTION OF NEW POLICE FACILITY
Ad Hoc Council Committee (Blom, Weber, Barto):
• Formed to review and evaluate police facility sites and design options • Evaluated multiple sites beyond the proposed 1201 Dove Street location • Expressed growing interest in locating the facility near the Civic Center • Hired a consultant to develop site massing concepts and preliminary cost estimates
• Reviewed additional sites, including:
• Potential private sites near the Civic Center
• A portion of Civic Center Park (NE corner of Avocado Ave. & Civic Center Dr.)
56 POSSIBLE NEW POLICE FACILITY AT 1201 DOVE STREET
Ad Hoc Committee’s assessment:
• Property already owned by the City
• Location is not city-centric or near Civic Center
• Property is in a positive cashflow position and could be sold to help pay for new police facility
• Design/construction cost for police facility at this site estimated at $150 million
57 POSSIBLE NEW POLICE FACILITY CLOSER TO CIVIC
CENTER
Ad Hoc Committee’s assessment:
• Good locations and close to Civic Center.
• All privately owned. High cost of site acquisition is big deterrent. • Design/construction cost estimated for police facility in this area would be around $153 million.
58 POSSIBLE NEW POLICE FACILITY AT CIVIC CENTER PARK
Ad Hoc Committee’s assessment:
• Adjacent to Civic Center.
• City owned - eliminates land cost.
• Design/construction cost for police
facility at this site estimated at $162
million (excluding significant mitigation).
59 POSSIBLE NEW POLICE FACILITY AT CIVIC CENTER PARK
60 Ad Hoc Committee request:
• If Ad Hoc’s preferred Civic Center Park site is recommended - • Update New Police Station (ref #8) in the FFP to show:
• All In Cost ~ $96,000,000 $162 million
• Schedule - Start Design 2030 2026, Construction 2033 2029 • Include $1.5 million in the current FY 2025-26 CIP budget to hire consultant team for further design development, preparation of final concept and EIR for further Council review and approval.
SIGHTING, CONSTRUCTION OF A NEW POLICE FACILITY
61 • Considering relocating Fire Station No.3 further east (toward MacArthur Blvd.) to improve response times to the Port Streets • Potential site - the current OCTA Transportation Center off Avocado Ave.
• OCTA study underway. 12- to 15-month timeline until we can determine if this is a possible relocation solution
• Recommend modifying the FFP for Fire Station No. 3 to reflect desire to advance replacement project
• Update New Fire Station No. 3 (ref #12) in the FFP to show:
Schedule Start Design 2032 2029, Construction 2035 2031 SIGHTING, CONSTRUCTION OF A NEW FIRE STATION NO. 3
62 PROPOSED FACILITIES FINANCING PLAN
63 FACILITIES FINANCING PLAN RESERVES
• General Fund contributes 3% of revenues annually to FFP to support debt service and capital projects.
• Year-end surplus typically provides a significant share of FFP funding.
• Available FFP reserves total $18.5 million, including $13.8 million from the FY 2024–25 year-end surplus, excluding funds reserved for the Balboa Library and Fire Station No. 1.
• Future FFP projects will rely on a mix of developer fees, debt financing, property sale proceeds, and General Fund surplus. 64 Questions and
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