Newport Beach City Council
March 10, 2026

LAUREN KLEIMAN, Mayor
NOAH BLOM, Mayor Pro Tem
MICHELLE BARTO, Councilmember
ROBYN GRANT, Councilmember
JOE STAPLETON, Councilmember
SARA J. WEBER, Councilmember
ERIK WEIGAND, Councilmember
SEIMONE JURJIS, City Manager
AARON C. HARP, City Attorney
LENA SHUMWAY, City Clerk

CITY OF NEWPORT BEACH

CITY COUNCIL AGENDA
COUNCIL CHAMBERS - 100 CIVIC CENTER DRIVE, NEWPORT BEACH, CA 92660 STUDY SESSION- 4:00 PM (PUBLIC WELCOME)
MARCH 10, 2026

NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT Any presentation requiring the use of the City of Newport Beach ’s equipment must be submitted to the City Clerk 24 hours prior to the scheduled City Council meeting.

LEVINE ACT
Under the Levine Act, Section 84308 of the Government Code, a party to a proceeding before the City involving a contract (other than competitively bid, labor, or personal employment contracts ), franchise, license, permit, or other entitlement for use, is required to disclose on the record of the proceeding any contribution in an amount of more than five hundred dollars ($500) made within the preceding 12 months by the party or the party ’s agent to any elected or appointed officer of the City. If you have made a qualifying contribution, please ensure to make this disclosure on the record.

PUBLIC HEARINGS
If in the future, you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing.

NOTICE TO THE PUBLIC
Any times listed in this agenda are provided as a courtesy and the actual item may be heard before or after the time given.

This agenda was prepared by the City Clerk. Copies of the staff reports and supporting materials are on file with the City Clerk and are available for public inspection and copying at the City Clerk ’s Office or online at newportbeachca.gov/agendas. For questions or to request copies of any staff reports or other documentation related to items on this agenda, please contact the City Clerk’s Office at 949-644-3005.

The City of Newport Beach ’s goal is to fully comply with the Americans with Disabilities Act (ADA). If you require special assistance to participate in this meeting, we will attempt to accommodate you in every reasonable manner .

Please contact City Clerk staff prior to the meeting at 949-644-3005 or cityclerk@newportbeachca .gov so that reasonable accommodations can be made.

March 10, 2026

City Council Meeting
I. ROLL CALL - 4:00 p.m.

INVOCATION
First Church of Christ, Scientist Newport Beach - Dr. Joan Bernard Bradley

PLEDGE OF ALLEGIANCE
II. STUDY SESSION
Capital Improvement Program (CIP) Early Look Review. City staff will present new projects and funding proposals for the upcoming Fiscal Year 2026-27 CIP for review and discussion by City Council
•
FY 2026_27 CIP Early Look
Newport Beach Police Headquarters Reconstruction. City staff will present further information on behalf of the “Newport Beach Police Headquarters Assessment Committee” (including potential locations, rough cost and schedules) regarding the replacement of the current Police Headquarters located at 870 Santa Barbara Drive for review and discussion by City Council.
•
PD Facility Presentation

PUBLIC COMMENTS ON AGENDA AND NON-AGENDA ITEMS
The City Council of Newport Beach welcomes and encourages community participation .

Public comments are invited on items listed on the agenda and non -agenda items .

Speakers must limit comments to three minutes per person to allow everyone to speak .

Written comments are encouraged as well. The City Council has the discretion to extend or shorten the time limit on agenda or non-agenda items.

CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL

ON COMMITTEE ACTIVITIES

PUBLIC COMMENTS ON CONSENT CALENDAR
This is the time in which Councilmembers may pull items from the CONSENT CALENDAR for discussion (ITEMS 1 - 11). Public comments are also invited on Consent Calendar items. Speakers must limit comments to three minutes. Before speaking, please state your name for the record. If any item is removed from the Consent Calendar by a Councilmember, members of the public are invited to speak on each item for up to three minutes per item.

All matters listed under CONSENT CALENDAR are considered to be routine and will all be enacted by one motion in the form listed below. Councilmembers have received detailed staff reports on each of the items recommending an action. There will be no separate discussion of these items prior to the time the City Council votes on the motion unless members of the City Council request specific items to be discussed and /or removed from the Consent Calendar for separate action.

March 10, 2026

City Council Meeting
III. CONSENT CALENDAR

READING OF MINUTES AND ORDINANCES
Reading of Ordinances1.

Waive reading in full of all ordinances under consideration for adoption and direct the City Clerk to read by title only.

Minutes for the February 24, 2026, City Council Meeting2.

Waive reading of subject minutes, approve as written, and order filed.

Minutes

RESOLUTIONS FOR ADOPTION
Resolution No. 2026-16: Revised Salary Schedule and New Classifications for the Key & Management Group

3. a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly;
b) Adopt Resolution No. 2026-16, A Resolution of the City Council of the City of Newport Beach, California, Approving a Revised Salary Schedule and New Classifications for the Key & Management Group; and
c) Approve the Job Descriptions for the real property manager and code enforcement manager and authorize the community development director to approve new job descriptions consistent with the new positions approved by the City Council.

Staff Report
Attachment A - Resolution No. 2026-16
Attachment B - Real Property Manager Job Description
Attachment C - Code Enforcement Manager Job Description March 10, 2026

City Council Meeting
Resolution No. 2026-17: A Report Made by the Fire Marshal Regarding Compliance with the Annual Inspection of Certain Occupancies

4. a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Adopt Resolution No. 2026-17, A Resolution of the City Council of the City of Newport Beach Acknowledging Receipt of a Report Made by the Fire Marshal of the City of Newport Beach Fire Department Regarding Compliance with the Annual Inspection of Certain Occupancies Pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code.

Staff Report
Attachment A - Resolution
Resolution No. 2026-18: Amending the Selection Process and Various Responsibilities of the Finance Committee

5. a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Adopt Resolution No. 2026-18, A Resolution of the City Council of the City of Newport Beach, California, Amending the Selection Process and Various Responsibilities of the Finance Committee.

Staff Report
Attachment A- Resolution- 2026-18 amended
Attachment B - Tentative Finance Committee & Council Review Schedule March 10, 2026

City Council Meeting

CONTRACTS AND AGREEMENTS
Street Pavement Repair Program Fiscal Year 2025-26 - Award of Contract No . 9946-1 (26R03)

6. a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(c), Class 1 (maintenance of existing public facilities involving negligible or no expansion of use) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) Approve the project plans and specifications;
c) Approve Budget Amendment No. 26-057 appropriating $224,200.15 in increased expenditures in Account No. 01201927-980000-26R03 from the General Fund CIP unappropriated fund balance, $3,333 in new revenue and expenditures from Irvine Ranch Water District to Account Nos. 13501-431220-26R03 and 13501- 980000-26R03, respectively and $18,666 in new revenue and expenditures from Orange County Sanitation District to Account Nos. 13501-431075-26R03 and 13501-980000-26R03, respectively;
d) Award Contract No. 9946-1 to Onyx Paving Company, Inc. for the total bid price of $1,082,000 for the Street Pavement Repair Program FY 2025-26 project, and authorize the Mayor and City Clerk to execute the contract; and e) Establish a contingency of $110,000 (approximately 10% of the total bid) to cover the cost of unforeseen work not included in the original contract.

Staff Report
Attachment A - Location Map
Attachment B - Budget Amendment
Approval of Amendment No. Two to Professional Services Agreement with SafeRock for Restroom Security Services (Contract No. 9576-1)

7. a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Approve Amendment No. Two to Professional Services Agreement with SafeRock for Restroom Security Services for an additional $40,000 for a total not-to-exceed amount of $160,000 and extend the term of the agreement to September 14, 2026, and authorize the Mayor and City Clerk to execute the agreement.

Staff Report
Attachment A - Professional Services Agreement
March 10, 2026

City Council Meeting
Approval of Amendment No. One to Professional Services Agreement with Hinderliter, De Llamas & Associates for Sales and Use Tax Consulting Services

8. a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Approve Amendment No. One to the Professional Services Agreement with Hinderliter, De Llamas & Associates for Sales and Use Tax Consulting Services to extend the term of the agreement to December 31, 2026, revise the schedule of billing rates, and authorize the Mayor and City Clerk to execute the amendment.

Staff Report
Attachment A - Amendment No. One with Hinderliter, De Llamas & Associates for Sales and Use Tax Consulting Services

MISCELLANEOUS
Second Quarter Budget Update9.
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly
b) Receive and file this report.

Staff Report
Financial Statement Audit Results and Related Communication for the Fiscal Year Ended June 30, 2025

10. a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly;
b) Receive and file
Staff Report
Attachment A - Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025
Attachment B - Auditors' Required Communications with the Audit Committee Attachment C - Auditors' Report on Internal Control and Other Matters March 10, 2026

City Council Meeting
Planning Commission Agenda for the March 5, 2026, Meeting11.

Receive and file.

PC Agenda
PC Action Report
PC - future agenda items
ACTION: MOVE AFFIRMATIVE ACTION OF THE CONSENT CALENDAR, EXCEPT FOR

THOSE ITEMS REMOVED

ITEMS REMOVED FROM THE CONSENT CALENDAR
IV. MOTION FOR RECONSIDERATION
A motion to reconsider the vote on any action taken by the City Council at either this meeting or the previous meeting may be made only by one of the Councilmembers who voted with the prevailing side.

PUBLIC COMMENTS ON CLOSED SESSION
V. CLOSED SESSION

CONFERENCE WITH LEGAL COUNSEL

ANTICIPATED LITIGATION - INITIATION OF LITIGATION
A.

Government Code § 54956.9 (d)(4): 1 matter.

CLOSED SESSION REPORT

ADJOURNMENT
Written Comments Received on Agenda and Non -Agenda Items after Agenda Posting
Non Agenda Item Correspondence
Study Session 2 Correspondence
Agenda Item 5 Correspondence
Agenda Item 6 Correspondence
Written Comments
Testimony given before the City Council is recorded.

PLEASE TURN CELL PHONES OFF OR SET IN SILENT MODE.

FISCAL YEAR 2026-27

CAPITAL IMPROVEMENT PROGRAM

EARLY LOOK
March 10, 2026
City Council Study Session Item No.1
THE CITY’S

CAPITAL IMPROVEMENT PROGRAM
• Sets Priorities and Appropriates Funds
• Provides a Basis for Project Planning and Identifies
Potential Conflicts
• Develops and Constructs Identified Public
Improvements
• Addresses Significant Maintenance Projects
• Responds to Changing Priorities and Conditions
2 GENERAL FUND ALLOCATION TO THE

CAPITAL IMPROVEMENT PROGRAM
3 • Budget Focuses Resources on Maintaining or Replacing Existing Infrastructure and keeping it in Good Condition.
• Includes $6,500,000 baseline General Fund Investment and an additional $1,400,000 investment from the CIP General Fund Program Balance toward maintaining City Infrastructure. • Includes $2,500,000 baseline General Fund Investment and an additional $1,000,000 investment from the FMMP General Fund Balance for Facility Maintenance Master Plan projects.
• Includes $2,300,000 baseline General Fund Investment for Park Maintenance Master Plan projects
FY 2026-27 CIP PROJECTION
4 • FY 2025-26 CIP = $112.3 Million
• Preliminary FY 2026-27 CIP Tentative Total ~ $95.0M
$47.6 Million New Funding
$47.4 Million Re-Budget* from FY 2025-26
Some Possible Large Re-Budget Projects
• Balboa Island Drainage / Pump Station Improvements $6.3M • Balboa Yacht Basin Dock Replacement $6.1M
• Old Newport at WCH Intersection Improvements $5.6M
• Harbor and Ocean Bulkheads and Seawalls Rehab $4.5M • Balboa Island Seawall – Permitting & Design $2.0M
• 15th Street Restroom Replacement $1.1M
• Lower Castaways Park ?
*Assumed Re-Budget on July 1, 2026
PROPOSED FY 2026-27

SUMMARY OF NEW FUNDING BY TYPE
5 Funding Type Proposed New
Funding
General Fund Allocation $7,900,000
Roadway Funding (SB1, GT, M2) $10,200,000
Water/Wastewater $8,300,000
FFP/FMMP/PMMP (GF) $5,800,000
Tidelands $2,700,000
Neighborhood Enhancement (GF) $1,650,000
Grants & Contributions / Building Excise Tax /
Environmental Liability Fund $11,023,000
TOTAL $47,573,000

FACILITIES
6 • Building Resiliency and Backup Generation $250,000 FMMP • Council Chamber & Community Room AV Upgrades $500,000 FMMP, PEG
• Facilities Maintenance Master Plan Program $3,150,000 FMMP • Newport Coast Pickleball Courts - Lighting $250,000 GF Re-budget of $234,000 for a total of $484,000
• Trash Enclosure Improvements $600,000 GF, GR
Balboa Pier and CDM State Beach
• Utility Facilities Improvements $400,000 WF
Re-budget of $300,000 for a total of $700,000
TOTAL FACILITIES (New $) $5,150,000
FMMP – Facilities Maintenance Master Plan PEG – Public, Educational & Government Fund GF – General Fund GR - Grants and Contributions WF – Water Fund

STREETS & DRAINAGE
7 • Balboa Island Concrete Road & Alley Improvements $3,000,000 GF,NE,WF • Birch St – Bristol St to Jamboree Rd $440,000 SB1 • City Bridge Maintenance Program $500,000 GT Re-budget of $100,000 for a total of $600,000
• Concrete Replacement Program $1,900,000 GF, NE
(Corona Del Mar - North of ECH, Newport Coast, Newport Center) PMMP Re-budget of $570,000 for a total of $2,470,000

GF – General Fund NE – Neighborhood Enhancement
WF – Water Fund SB1 – SB1 RMRA GT – Gas Tax
PMMP – Parks Maintenance Master Program

STREETS & DRAINAGE
8 • Corona del Mar Street and Traffic Improvements $500,000 GF • Eastbluff Dr – Jamboree Rd S to Jamboree Dr N $430,000 SB1 • Landscape Enhancement Program $600,000 GF, NE
(Corona Del Mar Villas Frontage, Cameo Frontage & Mesa Dr Trail) Re-budget of $1,000,000 for a total of $1,600,000
• Pavement Management Plan $60,000 GF
• San Miguel Dr Paving – San Joaquin Hills Rd $4,627,700 M2, SB1 to Old Ford Rd

GF – General Fund SB1 – SB1 RMRA
NE – Neighborhood Enhancement M2 – OCTA Measure M

STREETS & DRAINAGE
9 • Slurry Seal Program $1,895,000 GT (Corona Del Mar - North of ECH, Newport Coast & Newport Center) • Storm Drain System Repair / Rehabilitation $400,000 GF Re-budget of $700,000 for a total of $1,100,000
• Street Pavement Repair Program $1,500,000 GF,GT, SB1 • Streetlight Rehabilitation Program $600,000 GF Re-budget of $200,000 for a total of $800,000
• Via Lido Pavement Rehab $690,700 SB1
Newport Blvd to Via Malaga
TOTAL STREETS & DRAINAGE (New $) $17,143,400

GT – Gas Tax GF – General Fund
SB1 – SB1 RMRA

TRANSPORTATION
10 • Bristol Street Corridor Regional Signal $110,000 GF Synchronization Project
• Traffic Signage, Striping and Markings $80,000 GF
Re-budget of $50,000 for a total of $130,000
• Traffic Signal Rehabilitation Program $1,390,000 GF, GT Re-budget of $493,000 for a total of $1,883,000
TOTAL TRANSPORTATION (New $) $1,580,000

GT – Gas Tax GF – General Fund

WATER QUALITY & ENVIRONMENTAL
11 • Environmental Habitat Restoration - $200,000 TL Monitoring and Maintenance
Re-budget of $100,000 for a total of $300,000
• Newport Beach Trash Interceptor Modifications $300,000 EL • TMDL Compliance/Water Quality Improvements $200,000 TL Re-budget of $200,000 for a total of $400,000
TOTAL WATER QUALITY & ENVIRONMENTAL(New $) $700,000

TL – Tidelands EL – Environmental Liability Fund

PARKS, HARBORS & BEACHES
12 PARKS
• Bonita Creek Park Athletic Field Turf Replacement $1,800,000 GF Re-budget of $2,792,000 for a total of $4,592,000
• Park Maintenance Master Plan Program $1,900,000 PMMP Re-budget of $600,000 for a total of $2,500,000
• Playground Refurbishment Program $300,000 GF, BET
Re-budget of $446,000 for a total of $746,000
SUBTOTAL PARKS (New $) $4,000,000

GF – General Fund PMMP – Park Maintenance Master Plan BET – Building Excise Tax

PARKS, HARBOR & BEACHES
13 HARBORS & BEACHES
• Beach and Bay Sand Management $500,000 TL • Harbor & Ocean Maintenance/Minor Improvements $100,000 TL Re-budget of $100,000 for a total of $200,000
• Harbor & Ocean Bulkheads/Seawalls/Structure Repairs $400,000 TL Re-budget of $4,500,000 for a total of $4,900,000
• Ocean Piers Inspection and Maintenance $500,000 TL

TL - Tidelands

PARKS, HARBOR & BEACHES
14 • Eelgrass Survey $175,000 TL
• Vessel Sewage Pump-out Replacement $125,000 TL
• Tide Valve Replacement $500,000 TL
SUBTOTAL HARBOR & BEACHES (New $) $2,300,000
___________________________________________________________________________________________________________________ ____________ TOTAL PARKS, HARBOR & BEACHES (New $) $6,300,000

TL - Tidelands

WATER
15 • Distribution Valve Replacement Program $153,000 WF • Grade Adjustments – Water Valves $122,000 WF • New Water Wells and Pipelines $10,000,000 GR Re-budget of $1,546,000 for a total of $11,546,000
• Water System Rehabilitation $533,000 WF • Water and Wastewater Bay-Crossings (Back Bay Landing) $282,000 WF Re-budget of $1,768,000 for a total of $2,050,000
• Zone 3 and Zone 4 Pump Station Upgrades $4,310,000 WF TOTAL WATER (New $) $13,428,000

WF – Water Fund GR - Grants and Contributions

WASTEWATER
16 • Grade Adjustments – Sewer Manhole Covers $100,000 WWF Re-budget of $150,000 for a total of $250,000
• Sewer Main Lining and Repairs $900,000 WWF Re-budget of $600,000 for a total of $1,500,000
TOTAL WASTEWATER (New $) $1,000,000

WWF – Wastewater Fund

• 7th Cycle Housing Element Planning $300,000 GF

TOTAL MISCELLANOUS (New $) $300,000

GF – General Fund

MISCELLANEOUS
17 5-YEAR LOOK AHEAD

SIGNIFICANT PROJECTS
18 Estimated Construction Start Dates
 FY 27-28
- Eastbluff Dr Pavement Rehab
(Jamboree (N) to Jamboree (S))
- Balboa Island Seawall - Phase 1
(Grand Canal & West End)
 FY 28-29
- Police Station
- Jamboree Rd Pavement Rehab
(Campus Dr to University Dr)
- West Coast Hwy Intersection Improvements
and Pedestrian Bridge

19 Estimated Construction Start Dates
 FY 29-30
- Newport Center Drive Pavement Rehabilitation
- Newport Pier and McFadden Plaza
 FY 30-31
- Fire Station No. 3
- Newport Coast Drive Pavement Rehabilitation
(CA-73 to Ridge Park Road)
 FY 31-32
- Arroyo Park Synthetic Turf Replacement
- Newport Bay Water and Sewer Main Crossings
- Seaview Ave Concrete Reconstruction
(Carnation to Narcisus)
5-YEAR LOOK AHEAD

SIGNIFICANT PROJECTS
Comments / Questions
20 Your Public Works Department
Protecting and Providing Quality
Public Improvements and Services
NEWPORTBEACHCA.GOV/PUBLICWORKS
Newport Beach Police Headquarters Assessment
Committee Presentation Regarding
-

NEWPORT BEACH POLICE FACILITY REPLACEMENT
City Council Planning Session Item No. 2
March 10, 2026
2 Recent Undertakings
• On November 4, 2025, City Council created the Newport Beach Police Headquarters Assessment Committee (Blom, Weber, Barto) to evaluate potential sites and assess the feasibility, cost and design options for a new Police Headquarters
• Contracted with Griffin Structures Inc. to provide rough site constructability and costing information to assist with site reviews • Committee has been considering/reviewing several sites including:
➢ Current Location – Santa Barbara
➢ Proposed 1201 Dove Street Location
➢ In around the Civic Center Area
➢ Lower Portion of Civic Center Park
3 Limitations of the Existing Police Facility
at 870 Santa Barbara Drive
• Site Property/Building
‐ 4 Acres. Zoned for Public Facilities w/Residential Overlay. 300’ height limit ‐ Police Building ~ 49,284sf 2-story concrete tilt-up building, constructed in 1973 ‐ Shares site w/Fire Station No.3 ~ 13,500sf concrete building, constructed in 1971 • Aging Infrastructure and Operational Limitations
Facility Condition
‐ 2021 Facilities Condition Assessment rated the building “Fair” ‐ A 50+ year old facility operating 24/7 for critical public safety functions Increasing System Failures
‐ Growing maintenance needs and costs
‐ Recent issues include sewer backups, electrical/fire concerns, and generator switchgear failure
Major Structural & Infrastructure Concerns
‐ Aging structure requiring increasing repairs
‐ Many systems outdated or beyond intended service life ‐ Building has very limited natural light, only 20% of space has natural light ‐ Does not meet current building or seismic standards
3 Technology & Digital Evidence Demands
- Building not designed for modern policing technology
- Limited capacity for data storage, servers, and secure networks - Need for upgraded electrical infrastructure to support increasing technology demands
- Increasing needs for body-worn camera, video, and digital evidence storage - Retrofitting aging infrastructure is costly and inefficient Operational Constraints
- Space limitations impacting department operations
- Insufficient parking and operational support areas
- Facility layout not designed for modern policing needs Key Question: Should the City continue investing in major system upgrades in a building at the end of its useful life?
Limitations of the Existing Police Facility (cont.)
Key Factors for Evaluating Police Headquarters Sites
Evaluation Criteria
• Operational Continuity
Ability to maintain uninterrupted police services during construction • Central Location
Proximity to civic services, geographic center of the city, and appropriate civic presence
• Fiscal Responsibility
Total cost to taxpayers including land acquisition and construction • Constructability
Physical feasibility of constructing the facility on the site • Long-Term Functionality
Facility capable of supporting modern policing needs for decades • Land Availability
Preference for city-owned land when feasible
6 Potential New Police Facility at Current Site
Three Potential Construction Approaches
Important Note: Before any police rebuild could begin, Fire Station #3 must first be relocated to a new off-site location, which would take approximately 3+ years once a site is secured
Option One - Renovate Existing Building + Expansion
• Full seismic retrofit of existing structure
• Add ~25,000 sq ft expansion
• Build 2-story parking structure (250 stalls)
Option Two - New 2-Story Police Facility
• Demolish existing station
• Construct new 75,000 sq ft building
• Build 2-story parking structure (250 stalls)
Option Three - New 3-Story Police Facility
• Construct new 75,000 sq ft building
• Build 2-story parking structure (160 stalls)
• Add 125 surface parking spaces
All options require multi-year construction and significant operational disruption 7 Potential New Police Facility at Current Site
Option One
1) Construct temporary limited Police Trailer Complex on former FS#3 area 2) Complete rehabilitation of existing Police Structure and add 25,000sf to existing structure
3) Construct 250 Stall Parking Structure on former FS#3 and Parking Lot area Phase 1 Phase 2 Phase 3 ➢ Major Disruption to the Police Operations during construction. Temporary Trailer Facilities will not accommodate all functions
➢ Requires Secure Off-Site Parking Facility w/employee shuttle ➢ Estimated Timeline: ~ 3 years (Fire Station relocation) + ~ 3–4 years (Police facility construction) = ~ 6–7 years total

8 Potential New Police Facility at Current Site
Option Two
1) Build a new 2-Story 75,000sf PD Building on former Fire Station & Parking Lot area while maintaining current PD Building in operation 2) Build a new 250 Stall Parking Structure on former Police Building area.

Phase 1 Phase 2 ➢ Highly Disruptive of Police Operations during construction ➢ Requires Secure Off-Site Parking Facility w/employee shuttle ➢ Estimated Timeline: ~ 3 years (Fire Station relocation) + ~ 3 years (Police facility construction) = ~6 years total

9 Potential New Police Facility at Current Site
Option Three
1) Build temporary Parking Lot on former FS#3 site
2) Construct a new 160 Stall Parking Structure on former Parking Lot 3) Construct a new 3-Story 75,000sf PD Building on former FS#3 area 4) Construct new 125 Stall Parking Lot & Supplemental Building on former Police Building area
Phase 1 Phase 2 Phase 3 Phase 4

➢ High/Moderate Disruption to the Police Operations during construction ➢ Some Secure Off-Site Parking needed w/employee shuttle ➢ Estimated Timeline: ~ 3 years (Fire Station relocation) + ~ 3–4 years (Police facility construction) = ~ 6–7 years total

10 Potential New Police Facility at Current Site
Evaluation Factor​ Option 1 — Renovation / Expansion​ Option 2 — 2-Story Facility​ Option 3 — 3-Story Facility​ Project Approach Full building gut and seismic upgrade Ground up new facility Ground up new facility with lower cost support building
Operational Disruption Extremely disruptive to ongoing operations Highly disruptive during construction Highly disruptive during construction Temporary Facilities Temporary facilities required N/A N/A Parking During Construction Offsite parking required w/ shuttle Offsite parking required w/ shuttle Small amount of offsite parking required Potential Service Impacts
Need to temporarily outsource dispatch, jailing,
firing range, fleet maintenance and fueling,
evidence functions, other
No major outsourcing anticipated No major outsourcing anticipated Building Presence Existing building retained Building set back from primary frontage Building set back from primary frontage Site Constraints Existing footprint limits flexibility Tight site constraints limit flexibility Tight site constraints limit flexibility Construction Staging/Equipment
& Worker Parking Highly limited Highly limited Highly limited Schedule / Phasing ~3-4+ years; once fire is moved off-site ~3+ years; once fire is moved off-site ~3-4+ years; once fire is moved off-site Estimated Project Cost
(Design and Construction) $152M $161M $168M
Cost Exclusions
The costs above exclude applicable outsourced services, off-site parking expenses, shuttle operations, andother related ancillary costs. Preliminary estimates are within $5M-20M. In addition, these figures reflect capital expenditures only and do not account for intangible impacts such as operational disruption.

11Possible New Police Facility at 1201 Dove Street
Potential New Police Facility at 1201 Dove Street
Site Property
‐ 3.59 Acres with existing 6 Story steel framed Office Building ‐ Zoned for Professional & Business Office Suites with a Residential Opportunity Overlay - up to 179 Units
12 Potential New Police Facility at 1201 Dove Street
Ad Hoc Committee Observations:
• City-owned property with existing 6-story
office building (3.59 acres)
• Income-producing City asset
– $2,299,913 gross revenue
– $1,190,414 net annual income
• Location is outside the Civic Center campus
and less central to civic services, increasing
response times
• Existing building would require demolition to
construct a police facility
• Estimated construction cost:
~$150M (including demolition)
• Property could alternatively be sold to help
fund a new police headquarters

13 Potential New Police Facility Closer to Civic Center Ad Hoc Committee Observations:
• Locations offer strong proximity to Civic Center and other civic services • All potential sites are privately owned, requiring property acquisition • Land acquisition costs are a significant deterrent
• Estimated design and construction cost for a new police facility:
~ $153M (land acquisition not included)

14 Sample Rough Layout for a possible site in Newport Center Area Design/Construction Cost Estimate ~ $153,000,000 (excludes land acquisition cost) Potential New Police Facility Closer to Civic Center
Potential New Police Facility Closer to Civic Center
.76 ac
$25M

1.0 ac
$20M

1.0 ac
$20M
.75 ac
$15M
Combine 4 Possible Parcels = 3.6 Acres
Total Appraised Land Value - $80M - $90M
16 Potential New Police Facility at Civic Center Park
Ad Hoc Committee Considerations
• Location at NE corner of Avocado Ave. &
Civic Center Drive
• Proximity to City Hall and civic services
• City-owned property – no land acquisition
cost
• Integrates public safety within the City’s
civic campus
• Site grading and preparation required
• Estimated design and construction cost:
~ $162M (excluding mitigation costs)

17 Lower Park

6.27 ac
Upper Park

3.18 ac
Current Total Park: 9.45 Acres
Future Total Park: 5.95 Acre
Potential New Police Facility at Civic Center Park

3.5 Acres for
PD Facility
Reimagined Park &
Sculpture Garden
18 Potential New Police Facility at Civic Center Park

7 Police Facility Site Comparison
Evaluation Factor Current Site
(Santa Barbara)
Dove Street Private Land Near
Civic Center
Civic Center
Campus
Land Acquisition Cost None None $80M–$90M None
Construction Cost Option 1: $152M
Option 2: $161M
Option 3: $168M
~$150M ~$153M ~$162M
Potential Temporary
Service Costs
Add $5M–$20M
(each option)
Not anticipated Not anticipated Not anticipated
Estimated Total Project
Cost (Construction +
Temporary Services)
Opt 1: $157M–$172M
Opt 2: $166M–$181M
Opt 3: $173M–$188M
~$150M ~$233M–$243M ~$162M
Ability to Maintain Police
Operations During
Construction
Significant challenges –
temporary facilities likely
required
Feasible Feasible Feasible
Project Timeline ~6–7 yrs total ~3–4 yrs ~3–4 yrs ~3–4 yrs Central Civic Location Near Civic Center Airport Area
(NOT central to civic services
and city center)
Near Civic Center Civic Center Campus
Key Considerations Fire Station #3 relocation
required; limited staging;
continuity of operations
challenges
Income-producing asset
($2.3M gross / $1.19M net
annually); Airport Area
location with reduced civic
visibility and separation from
the civic campus, increased
response times
Significant land
acquisition cost
required
City-owned site within
the Civic Center campus
providing a central and
visible municipal
presence; site grading
and mitigation required
20 Moving Forward
• With additional information provided tonight, undertake further Council and public discussion regarding site selection for a new Police Facility • Provide the Council Ad Hoc Committee direction to:
1) Continue to review/evaluate potential sites and timing for siting the new Police Facility; or
2) Continue further evaluation of a new Police Facility in Civic Center Park including:
‐ selection and hiring of a Consultant Team to undertake the Design Development, Preparation of Final Concept Design and EIR ‐ solicit further input from community and Arts Commission for incorporating art and park space into the overall Civic Center campus, then return to Council for review and approval; or
3) Pursue other direction as provided
Siting / Construction of a New Police Facility

YOUR PUBLIC WORKS DEPARTMENT

PROTECTING AND PROVIDING QUALITY

PUBLIC IMPROVEMENTS AND SERVICES
21 Questions and
Comments

CITY OF NEWPORT BEACH
City Council Meeting Minutes
Regular Meeting
February 24, 2026
Volume 66 - Page 504
I. ROLL CALL – 4:00 p.m.

Present: Mayor Lauren Kleiman, Mayor Pro Tem Noah Blom, Councilmember Michelle Barto (arrived at 4:03 p.m.), Councilmember Robyn Grant, Councilmember Joe Stapleton, Councilmember Sara J. Weber, Councilmember Erik Weigand
INVOCATION – Councilmember Grant
PLEDGE OF ALLEGIANCE – Mayor Pro Tem Blom
II. PRESENTATIONS
• Recognition of Newport-Mesa Unified School District Students Mayor Kleiman recognized the Newport Harbor High School Boys’ Water Polo Team for winning the CIF Division 1 Regional Championship.

A team representative expressed gratitude to Council for the recognition.

Mayor Kleiman then recognized the Corona del Mar High School Girls Flag Football Team.

Coach Theo Rocos praised his coaching staff and expressed appreciation for community support throughout the season.

PUBLIC COMMENTS ON AGENDA AND NON-AGENDA ITEMS
Adam Leverenz referenced slides, commented regarding harbor management , and advocated for affordable coastal access.

Wade Womack expressed concerns about the appearance of expedited decision -making and emphasized good governance.

Carmen Rawson spoke regarding Agenda Item 3 (Ordinance No. 2026-2: Amending Various Sections of the Newport Beach Municipal Code to Address Illegal Activity During High-Risk Periods) and questioned the "preponderance of evidence" standard and mandatory "shall be revoked" language within the ordinance.

Anne Stenton appreciated the recent formation of the Public Lands Trust Management Ad Hoc Committee and requested monthly meetings with stakeholders.

Jeff Flint spoke regarding Agenda Item 3 (Ordinance No. 2026-2: Amending Various Sections of the Newport Beach Municipal Code to Address Illegal Activity During High-Risk Periods), appreciated staff’s work and expressed concerns regarding text within the ordinance.

Robert Van Dyke also commented regarding Agenda Item 3 (Ordinance No. 2026-2: Amending Various Sections of the Newport Beach Municipal Code to Address Illegal Activity During High -Risk Periods), supported the ordinance's intent and recommended including clear language distinguishing responsible operators from those who don't take reasonable measures.

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Agenda Item No. 2
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Jim Mosher raised procedural concerns about agenda changes.

Laura Curran opposed building a police station at the Civic Center Park.

Reverand Ray Jordan – Corona del Mar Community Church arrived at 4:30 p.m. and provided a brief invocation.

CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON

COMMITTEE ACTIVITIES

Councilmember Grant
• Attended the Mayor’s Dinner and congratulated Mayor Kleiman on the event’s success.

Councilmember Stapleton
• Echoed congratulations to Mayor Kleiman and praised her State of the City presentation.

PUBLIC COMMENTS ON CONSENT CALENDAR

Adam Leverenz spoke on Agenda Item 7 (Amendment to Professional Services Agreement for Video Production and Programming Services with TV Pro Gear, Inc. (Contract No. 9488 -1) and thought that Harbor Commission meetings should be filmed by the City in the future.

Anne Stenton also requested filming of Harbor Commission meetings for greater transparency.

Laura Curran asked for clarification regarding the public comment process.

II. CONSENT CALENDAR

READING OF MINUTES AND ORDINANCES

1. Reading of Ordinances
Waive reading in full of all ordinances under consideration and direct the City Clerk to read by title only.

2. Minutes for the February 10, 2026 City Council Meeting Waive reading of subject minutes, approve as written, and order filed.

ORDINANCES FOR ADOPTION

3. Item pulled from the Consent Calendar

RESOLUTIONS FOR ADOPTION

4. Resolution No. 2026-13: Limiting the Parking of Vehicles on Certain City Streets a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution 2026 -13, A Resolution of the City Council of the City of Newport Beach, California, Limiting the Parking of Vehicles on Certain City Streets.

Mayor Pro Tem Blom announced a conflict of interest on Agenda Item 4 due to real estate interests.

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CONTRACTS AND AGREEMENTS

5. Amendment No. One to On -Call Maintenance/Repair Services Agreement with South Coast Shipyard, Inc. for Rescue Boat Haul Out Services
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. 1 to On -Call Maintenance/Repair Services Agreement with South Coast Shipyard, Inc. for Rescue Boat Haul Out Services (Contract No. 9428 -1) to extend the term to June 30, 2028, and to increase the contract amount by $150,000, for a total not-to-exceed amount of $270,000, and authorize the Mayor and City Clerk to execute the Amendment.

6. Newport Beach Fire Station No. 1 and Balboa Branch Library Project – Award of Contract No. 8865-5 (23F12)
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 (Class 1 - Existing Facilities), Section 15302 (Class 2 - Replacement of Reconstruction), and 15303 (Class 3 - New Construction or Conversion of Small Structures) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3; b) Approve the project plans and specifications;
c) Approve Budget Amendment No. 26 -054 appropriating $850,000 in new revenue and expenditures from a Federal Grant to Account Nos. 13501 -431453-23F12 and 13501 -980000- 23F12, respectively;
d) Award Contract No. 8865-5 to AMG & Associates, Inc. for the total bid price of $13,178,000 for the Newport Beach Fire Station No. 1 and Balboa Branch Library Project, and authorize the Mayor and City Clerk to execute the contract; and
e) Establish a contingency of $1,317,800 (approximately 10% of total bid) to cover the cost of unforeseen work not included in the original contract.

7. Amendment to Professional Services Agreement for Video Production and Programming Services with TV Pro Gear, Inc. (Contract No. 9488-1)
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. One to the Professional Services Agreement with TV Pro Gear, Inc. to increase the contract by $60,000 for a new not -to-exceed amount of $180,000 and authorize the Mayor and City Clerk to execute the amendment.

MISCELLANEOUS

8. Irrigation Controller Replacement Phase 3 - Notice of Completion for Contract No. 9924- 1 (26P02)
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project.

9. Cultural Arts Grants Fiscal Year 2025-26
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve recommended recipients for Fiscal Year 2025 -26 Cultural Arts Grants as selected by the City Arts Commission in accordance with City Council Policy I-10, Culture and Arts Grants.

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Motion by Mayor Pro Tem Blom, seconded by Councilmember Weber, to approve the Consent Calendar, including amendments to Agenda Item No. 2, the Minutes, excluding Agenda Item No. 3 and noting Mayor Pro Tem Blom’s conflict of interest on Agenda Item No. 4.

The Motion carried by the unanimous vote: 7-0-0.

ITEMS REMOVED FROM THE CONSENT CALENDAR

3. Ordinance No. 2026-2: Amending Various Sections of the Newport Beach Municipal Code to Address Illegal Activity During High-Risk Periods
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Conduct second reading and adopt Ordinance No. 2026 -2, An Ordinance of the City Council of the City of Newport Beach, California, Amending Sections 1.04.060 (Safety Enhancement Zone) of Chapter 1.04 (Code Enforcement), Sections 5.95.045 (Conditions) and 5.95.065 (Suspensions and Revocations) of Chapter 5.95 (S hort Term Lodging Permit), and Section 11.08.020 (Use of Shade Coverings) of Chapter 11.08 (Conduct on Beaches and Piers) of the Newport Beach Municipal Code to Address Illegal Activity During High-Risk Periods.

Councilmember Barto requested the item be pulled and inquired about the enforcement process and coordination with other agencies.

City Attorney Aaron Harp noted similar provisions exist in neighboring cities and explained that the code enforcement division would handle violations . He remained committed to working with staff on proper notification and commented that warnings are typically issued before citations.

Councilmember Grant expressed full support for better beach safety and felt communication among staff could have been improved when drafting the ordinance.

Councilmember Weigand addressed bad actors setting up beaches at 6 AM with paid staff, blocking beach access, calling this unacceptable behavior that should be cited.

Mayor Pro Tem Blom supported the ordinance and prioritized ensuring emergency personnel access and lifeguard line of sight on beaches.

PUBLIC COMMENTS

Jeff Flint suggested a regular working group process between short-term lodging operators and City staff.

Carmen Rawson questioned enforcement capabilit ies and requested information be sent to all residents, not just short-term lodging operators.

Laura Curran supported the ordinance's safety intent while noting enforcement challenges .

Ken Rawson suggested adding clarifying language to the ordinance and thought the shade coverings discussion should be referred to the Parks, Beaches, and Recreation Commission.

Jim Mosher criticized mandatory permit revocation language within the ordinance, thought it needed improvements and did not support the item’s adoption.

Adam Leverenz referenced a slide and thought that the ordinance required further analysis.

Wade Womack thought the item lacked prior public engagement and objected to reducing standard sizing requirements for shade structures.

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February 24, 2026
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Mayor Pro Tem Blom noted that the City of Laguna Beach has similar shade covering regulations in place.

Motion by Mayor Pro Tem Blom, seconded by Councilmember Weber, to a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly ; and b) Conduct second reading and adopt Ordinance No. 2026 -2, An Ordinance of the City Council of the City of Newport Beach, California, Amending Sections 1.04.060 (Safety Enhancement Zone) of Chapter 1.04 (Code Enforcement), Sections 5.95.045 (Conditions) and 5.95.065 (Suspensions and Revocations) of Chapter 5.95 (S hort Term Lodging Permit), and Section 11.08.020 (Use of Shade Coverings) of Chapter 11.08 (Conduct on Beaches and Piers) of the Newport Beach Municipal Code to Address Illegal Activity During High- Risk Periods.

The Motion carried by the unanimous vote: 7-0-0.

City Clerk Shumway read the title of the adopted ordinance.

III. PUBLIC HEARINGS

10. Resolution No. 2026-14: Substantial Amendment to the 2025-2026 Annual Action Plan for the Federal Community Development Block Grant Program
a) Conduct a public hearing to receive comments on the Draft Substantial Amendment to the 2025-2026 Annual Action Plan;
b) Find the approval of the Substantial Amendment to the 2025-2026 Annual Action Plan exempt from the National Environmental Policy Act (NEPA) pursuant to 24 CFR Part 58, Section

58.34;
c) Find the approval of the Substantial Amendment to the 2025 -2026 Annual Action Plan is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c), Class 2 (reconstruction of existing facility involving negligible or no expansion of capacity) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment;
d) Adopt Resolution No. 2026 -14, A Resolution of the City Council of the City of Newport Beach, California, Approving a Substantial Amendment to the 2025 -2026 Annual Action Plan for the Federal Community Development Block Grant Program; and
e) Authorize the City Manager to: submit the Substantial Amendment to the 2025 - 2026 Annual Action Plan to HUD; execute all related documents on behalf of the City; and authorize the Community Development Director, or his/her designee, to be the official representative of the City of Newport Beach, and to submit required environmental documentation for CDBG projects.

Mayor Kleiman opened the public hearing at 5:08 p.m.

Real Property Administrator Lauren Whitlinger gave a PowerPoint presentation and provided a brief report.

Mayor Kleiman closed the public hearing at 5:12 p.m.

Motion by Mayor Pro Tem Blom , seconded by Councilmember Weigand, to a) Conduct a public hearing to receive comments on the Draft Substantial Amendment to the 2025-2026 Annual Action Plan; b) Find the approval of the Substantial Amendment to the 2025 -2026 Annual Action Plan exempt from the National Environmental Policy Act (NEPA) pursuant to 24 CFR Part 58, Section 58.34; c) Find the approval of the Substantial Amendment to the 2025-2026 Annual Action Plan is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c), Class 2 (reconstruction of existing facility involving negligible or no expansion of capacity) of the CEQA Guidelines, because this project has no potential to have a significant effect on the Draft
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environment; d) Adopt Resolution No. 2026 -14, A Resolution of the City Council of the City of Newport Beach, California, Approving a Substantial Amendment to the 2025 -2026 Annual Action Plan for the Federal Community Development Block Grant Program ; and e) Authorize the City Manager to: submit the Substantial Amendment to the 2025 - 2026 Annual Action Plan to HUD; execute all related documents on behalf of the City; and authorize the Community Development Director, or his/her designee, to be the official rep resentative of the City of Newport Beach, and to submit required environmental documentation for CDBG projects.

The Motion carried by the unanimous vote: 7-0-0.

V. CURRENT BUSINESS

11. Approval of Proposed Revisions to Various Council Policies a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2026 -15, A Resolution of the City Council of the City of Newport Beach, California, Amending Various Provisions of the Newport Beach City Council Policies and Rescinding Council Policy D-4.

Councilmember Grant raised several questions about policy revisions . She questioned deletion of language stating, "the City of Newport Beach is a City Council, City Manager form of government," wondering about the intent.

City Manager Seimone Jurjis explained this information exists in the City Charter and was duplicative.

Councilmember Grant further questioned removal of audit rights language from the discretionary grants policy.

City Manager Jurjis explained audit provisions would be included in individual grant agreements rather than general policy.

Regarding aviation policy changes, Councilmember Grant sought clarification about public comments. Staff confirmed only the red -line changes were made, adding EV infrastructure and drone references.

Councilmember Grant questioned limiting alcohol prohibition language to facilities "operated by the department" in policy B -13, asking whether other municipal facilities should also restrict alcohol use.

Recreation and Senior Services Director Sean Levin clarified that alcohol isn't allowed at any City facility except those specifically named, with special event permits providing the only exception requiring insurance and other requirements.

Councilmember Grant expressed concerns about tree policy changes, noting the Parks, Beaches and Recreation Commission's request to defer the item to allow for further review.

PUBLIC COMMENTS

Jim Mosher highlighted several concerns with proposed Council Policy revisions.

Parks, Beaches and Recreation Commissioner Keira Kirby thought the commission had insufficient time to provide feedback and requested additional time to review the proposed changes.

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Adam Leverenz thanked councilmembers for their work, suggested limiting policy updates to a few at a time in the future, and questioned ticket distribution procedures.

Councilmember Weber supported the policy changes, viewing the Parks, Beaches and Recreation Commission as the knowledge base for tree policy decisions.

Mayor Por Tem Blom moved, seconded by Councilmember Weber, to approve staff’s recommendations.

Councilmember Barto made a substitute motion to continue this item and review it at the next City Council meeting. Councilmember Grant seconded the motion.

The motion failed by the following vote:

AYES: Councilmembers Grant, Stapleton and Barto (3)
NAYES: Councilmembers Weber, Weigand, Mayor Pro Tem Blom and Mayor Kleiman (4) Councilmembers then voted on the first motion.

Motion by Mayor Pro Tem Blom, seconded by Councilmember Weber, to a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2026-15, A Resolution of the City Council of the City of Newport Beach, California, Amending Various Provisions of the Newport Beach City Council Policies and Rescinding Council Policy D -4.

The motion carried by the following vote:

AYES: Councilmembers Stapleton, Weber, Weigand, Mayor Por Tem Blom and Mayor Kleiman (5) NAYES: Councilmembers Grant and Barto (2)

12. Citywide ADA Improvements - Award of Contract No. 9943-1 (26R12) a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c), Class 2 (reconstruction of existing facility involving negligible or no expansion of capacity) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment;
b) Approve the project plans and specifications;
c) Approve Budget Amendment No. 26 -051 appropriating $582,000 in new expenditures from the Community Development Block Grant to Account No. 12050502-821004-26R12; d) Award Contract No. 9943 -1 to Heed Engineering for the total bid price of $429,400 for the Citywide ADA Improvements project, and authorize the Mayor and City Clerk to execute the contract;
e) Establish a contingency of $86,000 (approximately 20% of total bid); and f) Approve Contract Amendment No. One to the Professional Services Agreement with Michael Baker International, Inc. for annual CDBG Administration and Affordable Housing Monitoring (Contract No. 9932 -1) to increase the total contract amount by $31,185 for labor compliance services for the Citywide ADA Improvement project, for a total not -to-exceed contract amount of $427,435, and authorize the City Manager and City Clerk to execute the amendment.

Motion by Mayor Pro Tem Blom , seconded by Councilmember Weigand , to a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c), Class 2 (reconstruction of existing facility involving negligible or no expansion of capacity) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) Approve the project plans and specifications; c) Approve Budget Amendment No. 26-051 appropriating $582,000 in new expenditures from the Community Development Block Grant to Account No. 12050502-821004-26R12; d) Award Contract No. 9943-1 to Heed Engineering for the Draft
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total bid price of $429,400 for the Citywide ADA Improvements project, and authorize the Mayor and City Clerk to execute the contract; e) Establish a contingency of $86,000 (approximately 20% of total bid); and f) Approve Contract Amendment No. One to the Professional Services Agreement with Michael Baker International, Inc. for annual CDBG Administration and Affordable Housing Monitoring (Contract No. 9932 -1) to increase the total contract amount by $31,185 for labor compliance services for the Citywide AD A Improvement project, for a total not -to-exceed contract amount of $427,435, and authorize the City Manager and City Clerk to execute the amendment.

The Motion carried by the unanimous vote: 7-0-0.

VI. MOTION FOR RECONSIDERATION – None

PUBLIC COMMENTS ON CLOSED SESSION

There were no public comments on closed session.

City Attorney Harp read the closed session items.

Councilmember Stapleton announced a conflict of interest on Closed Session Item s A. and B based on property interest.

V. CLOSED SESSION

A. CONFERENCE WITH LEGAL COUNSEL

ANTICIPATED LITIGATION - INITIATION OF LITIGATION
Government Code § 54956.9 (d)(4): 1 matter.

B. CONFERENCE WITH LEGAL COUNSEL

EXISTING LITIGATION
Government Code § 54956.9 (d)(1): 1 matter.

Newport Beach Stewardship Association v. City of Newport Beach Orange County Superior Court Case No. 30-2024-01428295
California Court of Appeals Case No. G065816

C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS

Property: Palm Street Parking Lot - 600 & 608 East Balboa Boulevard and 209 Washington Street

City Negotiators: Seimone Jurjis, City Manager and Lauren Wooding Whitlinger, Real Property Administrator.

Negotiating Parties: Henry Pyle, Chartwell Real Estate Development

Under Negotiation: Instruction to City Negotiators regarding price and terms of payment.

CLOSED SESSION REPORT

City Attorney Harp announced that there was no closed session report.

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ADJOURNMENT
Meeting adjourned at 7:13 p.m.

The agenda was posted on the City's website and on the City Hall electronic bulletin board located in the entrance of the City Council Chambers at 100 Civic Center Drive , Newport Beach, on February 19, 2026, at 12:00 p.m.
____________________________________________
Lauren Kleiman
Mayor
__________________________________________
Lena Shumway
City Clerk
Draft

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

March 10, 2026
Agenda Item No. 3
ABSTRACT:

For the City Council’s consideration is a resolution to reclassify the real property administrator position to the newly created classification of real property manager, reclassify the code enforcement supervisor position to the newly created classification of code enforcement manager, and establish the salar ies. These adjustments ensure the City of Newport Beach is assigning employees to an appropriate jo b classification and that the corresponding compensation is equitable to the job duties assigned.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt Resolution No. 2026-16, A Resolution of the City Council of the City of Newport Beach, California, Approving a Revised Salary Schedule and New Classifications for the Key & Management Group; and
c) Approve the job descriptions for the real property manager and code enforcement manager in this staff report and authorize the community development director to approve new job descriptions consistent with the new positions approved by the City Council.

DISCUSSION:

As part of the FY 2024 -25 budget a request was approved t o study the classification of the real property administrator and code enforcement supervisor positions. At the end of FY 2024-25, the Administrative Services Department hired a consultant to study the classification and salary of the position s. The study concluded in December 2025 and determined that there have been material changes to the normal duties assigned to these positions and reclassification is warranted. The city manager has reviewed the report and recommends the proposed changes for the City Council’s consideration.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jaime Murillo, Community Development Director - 949-644-3209, [email protected]
PREPARED BY: Jaime Murillo, Community Development Director - 949-644-3209, [email protected]
TITLE: Resolution No. 2026-16: Revised Salary Schedule and New Classifications for the Key & Management Group
Resolution No. 2026-16: Revised Salary Schedule and New Classifications for the Key & Management Group
March 10, 2026

Reclassification of Real Property Administrator to Real Property Manager

The real property program continues to grow and expand, with the number and types of assets under management acquired throughout the last several years. The number and complexity of the contracts overseen by the program has also grown from what was anticipated (approximately 40 leases), when the program was first created, to more than 430 contracts. The program was originally created with the real property administrator as the sole staff member managing the program but has since grown with the position now overseeing a part-time management analyst, a new full-time management analyst, and a full-time assistant management analyst, as well as interns and temporary staff. Revenue managed by the program grew from $13.4 million in FY 2022-23 to $22.1 million in FY 2025-26.

Additionally, the position oversees the federal Community Development Block Grant program, several afforda ble housing and loan agreements, and is the liaison with the State Lands Commission for the City’s management of the granted lands in Newport Harbor. Also , it continues to provide support and/or facilitate projects for other City departments, like adjusting rental rates for harbor moorings, acquiring new properties in other jurisdictions for the development of water wells, and coordinating park in -lieu fee adjustments and methodologies with third-party vendors..

Reclassification of the position is warrante d to align the pay and title with the demonstrated managerial duties and the substantially increased responsibilities of managing a larger division, and a vastly larger and more complex real estate portfolio and program. The evolution of the real property program has led to better management of City assets and increased revenues used toward repair, maintenance and development of new City facilities and harbor improvements.

Revised responsibilities for the real property manager are reflected in Attachment B of this report.

Reclassification of Code Enforcement Supervisor to Code Enforcement Manager

The size and volume of the Code Enforcement Division have grown significantly, demonstrating that the position's duties are now at a managerial level . These responsibilities have grown in response to City Council priorities of taking a more proactive approach to specific activities. The activities include a proactive illegal street vendor enforcement program, proactive enforcement of short -term lodging and othe r commercial uses in residential neighborhoods, and refuse compliance and enforcement responsibilities taken over from the Public Works Department. The number of staff supervised has increased from four to eight positions. Additionally, the number of cases increased from 4,388 cases in 2023 to 6,745 cases in 2024. The total number of cases in 2025 was 7,506 cases, indicating a consistent increase in enforcement.

Positive changes include: 1) a complete, and successful overhaul of the refuse enforcement and demolition deposit program, resulting in increased revenue from citations and demolition forfeitures; 2) the implementation of the vendor enforcement Resolution No. 2026-16: Revised Salary Schedule and New Classifications for the Key & Management Group
March 10, 2026

program which resulted in great success, including a significant reduction in unauthorized beach vending and positive comments from lifeguards, police officers, commercial businesses, and residents; 3) a new and recently implemented, first -time, off -season inspection program as part of the new proactive short-term lodging program efforts.

Reclassification of the position to manager is warranted to reflect the increased management responsibilities , significantly increased staff size and increase in case volume.

Revised responsibilities for the code enforcement manager are reflected in Attachment C of this report.

FISCAL IMPACT:

The projected costs associated with each reclassification for the remainder of the current fiscal year are detailed below and are within the City Manager’s budget authority as established in Policy F-3 (Budget Adoption and Administration).  Conversion of one full-time real property administrator position to one full-time real property manager position, resulting in added cost s of $ 9,490.41 (including benefits).
 Conversion of one full-time code enforcement supervisor position to one full-time code enforcement manager position, resulting in added cost s of $ 9,642.77 (including benefits).

The annual cost to reclassify the positions for next fiscal year is estimated to be $28,391.46 and would be added to the FY 2026-27 budget.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Resolution No. 2026-16
Attachment B – Real Property Manager Job Description
Attachment C – Code Enforcement Manager Job Description

Attachment A
Resolution 2026-16

RESOLUTION 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF NEWPORT BEACH, CALIFORNIA, APPROVING A

REVISED SALARY SCHEDULE AND NEW

CLASSIFICATIONS FOR THE KEY & MANAGEMENT
GROUP
WHEREAS, the City of Newport Beach ("City") has employees who are not represented by an exclusively recognized collective bargaining unit and therefore are not covered by a collective bargaining memorandum of understanding/agreemen t; WHEREAS, the City Council of the City of Newport Beach ("City Council") h as previously established and recognized the unrepresented Key & Management ("K&M") employees , consisting of certain safety and non-safety management, professional a nd confidential classifications ;
WHEREAS, the City promotes effective communication and collaborative working relationships with its K&M employees to foster positive relations while balancing good management practices;
WHEREAS, on July 22, 2025, the City Council adopted Resolution 2025-45 which outlined the wages, hours, fringe benefits and other terms of employment of K&M employees for the period of July 12, 2025, through June 30, 2028 ("K&M Compensation Plan");
WHEREAS, on December 9, 2025, the City Council adopted Resolution 2025-88 amending the K&M Compensation Plan and salary schedule to establish/remove classifications/positions from the K&M Compensation Plan and the City's salary schedule; WHEREAS, the City Council intends to approve an amendment to the K&M Compensation Plan and salary schedule to establish Code Enforcement Manager and Real Property Manager positions in the K&M Compensation Plan and the City's salary schedule, which are set forth in Exhibits A and B and incorporated herein by this reference;
WHEREAS, City of Newport Beach Charter Section 601 requires the City Council to provide the number, titles, qualifications , powers, duties and compensation of all officers and employees of the City;
WHEREAS, Newport Beach Municipal Code Section 2.28.010 (Establishment of Classification and Salary Ranges) provides, upon recommendation of the City Manager, the City Council may establish by resolution the salary range or rate for each position; 16 Resolution No. 2026-

WHEREAS , the City Manager has reviewed the changes to the salary schedule for K&M job classifications provided in this resolution and recommends approval; and WHEREAS , by adopting this resolution, the City Council is approving and adopting the classifications and amendments to the salary schedule for K&M employees attached hereto as Exhibits A and B.

NOW, THEREFORE , the City Council of the City of Newport Beach resolves as follows:

Section 1: The City Council does hereby adopt and approve the addition of the Code Enforcement Manager and Real Property Manager positions to the: salary schedule, as set forth in Exhibit A, which is incorporated herein by this reference, and list of K&M Classifications, as set forth in Exhibit B, which is incorporated herein by this reference. The initial salary range for the Code Enforcement Manager and Real Property Manager shall be effective for the entire pay period that includes March 7, 2026.

Thereafter, the salary range for the Code Enforcement Manager and Real Property Manager shall adjust at such times and by such amounts as set forth in Exhibit A Section 2: The City's salary schedule and K&M Compensation Plan shall be modified to be consistent with this resolution.

Section 3: Any resolution, or part thereof, in conflict with this resolution shall be of no effect.

Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution.

Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Resolution No. 2026-

Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines , California Code of Regulations , Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment , directly or indirectly.

Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.

ADOPTED this 10th day of March 2026 .

ATTEST:

Lena Shumway
City Clerk
APPROVED AS TO FORM:

Cli=cFF~
Aaron C. Harp
City Attorney
Exhibit A - Key & Management Salary Schedule
Lauren Kleiman
Mayor
Exhibit B - Key & Management Classifications and their Subcategory Code Enforcement Manager
Code Enforcement Manager
Code Enforcement Manager
Code Enforcement Manager
Code Enforcement Manager
Code Enforcement Manager
Real Property Manager
Real Property Manager
Real Property Manager
Real Property Manager
Real Property Manager
Real Property Manager
Exhibit A
Newport Beach Key & Management Compensation Plan
MOU Ter m : July 12, 2025 - June 30, 2028
Effective M arch 7, 2026:

New Classifications
33 1 $ 71.25
33 2 $ 74.81
33 3 $ 78.53
33 4 $ 82.45
33 5 $ 86.60
33 6 $ 90.93
31 1 $ 71.25
31 2 $ 74.81
31 3 $ 78.53
31 4 $ 82.45
31 5 $ 86 .60
31 6 $ 90.93
Effective July 11, 2026 :
4% Cost-of-Living Adjustment (COLA)
$ 12,350 $ 148 ,199
$ 12,967 $ 155,604
$ 13,612 $ 163,343
$ 14,292 $ 171 ,502
$ 15,011 $ 180,135
$ 15,762 $ 189 ,142
$ 12,350 $ 148,199
$ 12,967 $ 155,604
$ 13,612 $ 163,343
$ 14,292 $ 171,502
$ 15,011 $ 180,135
$ 15,762 $ 189,14 2

POSITION TITLES GRADE STEP HOURLY MONTHLY ANNUAL

RATE RATE SALARY
Code Enforcement Manager 33 1 $ 74.10 $ 12,844 $ 154 ,127 Code Enforcement Manager 33 2 $ 77.80 $ 13,486 $ 161,8 28 Code Enforcement Manager 33 3 $ 81.67 $ 14,156 $ 169,876 Code Enforcement Manager 33 4 $ 85 .75 $ 14,864 $ 178 ,362 Code Enforcement Manager 33 5 $ 90 .07 $ 15,612 $ 187,341 Code Enforcement Manager 33 6 $ 94.57 $ 16,392 $ 196 ,708 Real Property Manager 31 1 $ 74 .10 $ 12,844 $ 154 ,127 Real Property Manager 31 2 $ 77.80 $ 13,486 $ 161 ,828
Real Property Manager 31 3 $ 81.67 $ 14,156 $ 169,876
Real Property Manager 31 4 $ 85.75 $ 14,864 $ 178,362
Real Property Manager 31 5 $ 90 .07 $ 15,612 $ 187 ,341 Real Property Manager 31 6 $ 94 .57 $ 16,392 $ 196,708
Effective July 10, 2027:
3% Cost-of-Living Adju stme nt (COLA)

POSITION TITLES GRADE STEP HOURLY MONTHLY ANNUAL

RATE RATE SALARY
Code Enforcement Manager 33 1 $ 76.32 $ 13,229 $ 158,751 Code Enforcement Manager 33 2 $ 80 .14 $ 13,890 $ 166,683 Code Enforcement Manager 33 3 $ 84 .12 $ 14,581 $ 174,972 Code Enforcement Manager 33 4 $ 88 .32 $ 15,309 $ 183,713 Code Enforcement Manager 33 5 $ 92 .77 $ 16,080 $ 192,961 Code Enforcement Manager 33 6 $ 97.41 $ 16,884 $ 202,609 Real Property Manager 31 1 $ 76.32 $ 13,229 $ 158, 751
Real Property Manager 31 2 $ 80.14 $ 13,890 $ 166,683
Real Property Manager 31 3 $ 84.12 $ 14,581 $ 174,972
Real Property Manager 31 4 $ 88 .32 $ 15,309 $ 183 ,713 Real Property Manager 31 5 $ 92 .77 $ 16,080 $ 192,961
Real Property Manager 31 6 $ 97.41 $ 16,884 $ 202,609
Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest who le dollar.

Actual rates may vary slightly due to roundin g.

Exhibit B
The City of Newport Beach
List of All Key & Management Classifications and Their Subcategory Term of Compensation Plan: July 12, 2025 - June 30, 2028 Position Title
Administrative Manager
Administrative Manager*
Administrative Services Director
Assistant Chief, Lifeguard Operations
Assistant, Administrative (K&M)
Assistant, Executive
Budget Analyst
Budget Analyst, Senior
City Attorney, Assistant
City Attorney, Deputy
City Clerk, Assistant
City Clerk, Deputy
City Engineer, Assistant
City Manager, Assistant
City Manager, Deputy
Civil Engineer, Principal
Civil Engineer, Principal - Plan Check
Civil Engineer, Senior (K&M)
Code Enforcement Manager
Community Develop. Director
Community Develop. Director, Deputy
Finance Director, Deputy
Finance Manager
Fire Chief
Fire Chief, Assistant
Fiscal Specialist (K&M)
Harbormaster
Harbormaster, Deputy
Homeless Services Manager
Human Resources Analyst
Human Resources Analyst, Assistant
Human Resources Analyst, Senior
Human Resources Director, Deputy
Human Resources Manager
Human Resources Specialist
Human Resources Supervisor
IT Engineer, Cybersecurity
IT Manager
Subcategory
Division Management
Division Management
Executive Management
Administrative Management -Safety
Confidential
Confidential
Confidential
Confidential
Executive Management
Division Management
Confidential
Confidential
Division Management
Executive Management
Executive Management
Division Management
Division Management
Confidential
Division Management
Executive Management
Administrative Management
Administrative Management
Division Management
Executive Management -Safety
Administrative Management-Safety
Confidential
Executive Management
Administrative Managemen t
Division Management
Confidential
Confidential
Confidential
Administrative Management
Division Management
Confidential
Division Management
Confidential
Administrative Management
Exhibit B
The City of Newport Beach
List of All Key & Management Classifications and Their Subcategory Term of Compensation Plan: July 12, 2025 - June 30, 2028 Position Title
IT Supervisor
Library Services Director
Library Services Manager
Management Analyst
Management Analyst, Assistant
Management Analyst, Senior
Management Fellow
Municipal Operations Director
Paralegal
Payroll Coordinator
Planner, Principal
Planning Manager
Police Chief
Police Chief, Assistant
Police Support Srvcs Administrator
Public Information Manager
Public Information Specialist
Public Works Director
Public Works Director, Deputy/City Engineer
Public Works Director, Deputy/Municipal Ops
Public Works Finance/Admin Manager
Purchasing & Contracts Administrator
Real Property Administrator
Real Property Manager
Recreation & Senior Srvcs Director
Recreation & Senior Srvcs Director, Deputy
Recreation & Senior Srvcs Manager
Superintendent
Systems and Administration Manager
Transportation Manager/City Traffic Engineer
Utilities Director
Water Operations Superintendent
*Y-Rated, Hired on/before 10/27/2018
Subcategory
Division Management
Executive Management
Division Management
Confidential
Confidential
Confidential
Confidential
Executive Management
Confidential
Confidential
Confidential
Division Management
Executive Management-Safety
Administrative Management-Safety
Administrative Management
Division Management
Confidential
Executive Management
Administrative Management
Administrative Management
Division Management
Confidential
Confidential
Division Management
Executive Management
Administrative Management
Division Management
Division Management
Division Management
Division Management
Executive Management
Division Management

Attachment B
Real Property Manager Job Description

CITY OF NEWPORT BEACH

REAL PROPERTY MANAGER

DEFINITION: Under general direction, to plan, organize, and manage the activities and operations of the City’s real property asset management program, including oversight of assigned staff, vendors, consultants, and resources; to manage the day-to-day operations of the City’s real estate portfolio to maximize public benefit and revenue, minimize operational costs and risk, and ensure compliance with contractual obligations and applicable federal, state, and local laws and regulations; to provide technical real estate expertise to City departments , serve as a liaison between internal departments and external stakeholders related to City -owned properties, and to perform related duties as assigned.

DISTINGUISHING CHARACTERISTICS : This is a management -level classification responsible for administering the City’s real property and asset management activities and operations . Incumbent s independently perform the full scope of property management and program coordination duties and are expected to exercise substantial independence, initiative, decision making authority , and professional judgment within established policies and guidelines.

SUPERVISION RECEIVED AND EXERCISED: Receives general direction from the City Manager or designee. Exercises direct supervision over assigned professional, technical, and administrative support staff.

ESSENTIAL DUTIES : The following essential duties are typical for this classification.

Incumbents may not perform all the listed duties and may be required to perform additional or different assignments from those below to address business needs and changing business practices:

• Plans, organizes, and oversees the day-to-day operational management of real estate assets, including rent collection, site inspections, property repairs, and maintenance scheduling;

• Administers and monitors lease agreements for income‑ producing properties, ensuring compliance with terms and conditions and adherence to maintenance programs that protect long‑term economic viability;

• Negotiates and manages complex citywide real estate transactions, including acquisitions, dispositions, exclusive negotiating agreements, development and lease agreements, license agreements, and permits;

• Serves as the primary liaison with tenants and stakeholders to address inquiries, investigate and resolve complex or sensitive issues, and maintain positive working relationships;

Real Property Manager City of Newport Beach

• Plans, organizes, selects, and supervises the work of assigned staff; coach es, motivates, monitor s, correct s and evaluates staff performance; recommends, implements, and provides staff training programs; recommends employee recognition, discipline, and termination; ensures that City personnel policy and employee agreements are implemented and applied consistently;

• Develops, implements, and administers asset and property management plans, policies, and procedures in alignment with the City’s long- term facility and financial goals;

• Oversees outside vendors and consultants in the solicitation and production of technical reports and real property analyses;

• Secures, reviews, and interprets property records, title reports, and related documents to determine ownership interests, encumbrances, and property rights associated with City-owned or acquired properties;

• Conducts market research to determine property values and identify opportunities for revenue optimization;

• Monitors, collects, and audits revenue streams from third‑party property use to ensure compliance with agreement terms and market‑rate standards;

• Conducts appraisals of properties and reviews independent appraisals to determine market value;

• Develops revenue projections for budget planning; negotiates fair market rates; monitors and adjusts lease agreements and manages consultant budgets;

• Identifies and evaluates opportunities to expand the portfolio of income-producing and agency use properties;

• Collaborates with internal departments and external consultants to optimize asset performance; leads cross -functional coordination with legal, finance, and external agencies;

• Administers consultant contracts for property management, appraisals, relocation services, legal descriptions, and related activities;

• Maintains internal controls related to billing, appraisals, contract compliance, and agreement administration;

• Prepares and presents reports to Boards, Commissions, and City Council; attends related meetings and subcommittee sessions as required; Real Property Manager City of Newport Beach

• Represents the City in property litigation and recommends settlement terms to departments and officials;

• Prepares and directs the preparation of a variety of complex analytical, statistical, and narrative records, reports, and correspondence; and

• Perform related duties as assigned.

QUALIFICATIONS: To perform this job successfully, an individual must be able to perform each essential duty . The requirements listed below represent the knowledge, skill, and ability required.

Knowledge of:

Principles and practices of real property law; municipal real estate contracts, permitting processes, negotiations, and transactions; asset and property management of City -owned and income- producing properties, including appraisals, lease administration, tenant relations, and oversight of consultants and vendors;

Principles and practices of real property marketing, and acquisition and disposition of properties;

Principles and practices of employee supervision, training, and performance evaluations;

Methods of financial analysis, market research, and property valuation to support budgeting, revenue projections, and management of City real estate assets;

Municipal budgeting and financial planning as related to real property operations and asset performance;

Applicable federal, state, and local laws, regulations, codes, and City policies governing municipal property management, leases, permitting, land use, and revenue compliance;

Principles and techniques of record keeping, reporting, and data analysis to support real estate operations, financial monitoring, and decision-making;

Fundamentals of maintenance planning, scheduling, oversight for City -owned, leased, and income-producing properties; and

Principles of effective written and oral communication, including grammar, spelling, punctuation, vocabulary, and preparation of reports and correspondence.

Real Property Manager City of Newport Beach

Ability to:

Plan, organize, and manage large portfolio of real estate assets and complex projects, including acquisitions, dispositions, leases, and property management operations, to meet operational goals and deadlines;

Interpret and apply lease agreements, contracts, permits, policies, procedures, and applicable federal, state, and local regulatory requirements;

Analyze financial data, market trends, appraisals, and valuation reports to support sound real estate, and revenue decision-making;

Prepare comprehensive reports and maintain accurate records to support operational oversight, internal controls, and presentations to Boards, Commissions, City Council, and other stakeholders;

Select, mentor, train, and evaluate staff; establish performance expectations; implement corrective or disciplinary actions in accordance with City policies; and provide oversight of consultants and vendors as appropriate;

Effectively represent the City in meetings and negotiations with tenants, consultants, governmental agencies, developers, community groups, various businesses, residents, and individuals;

Participate in the preparation, management, and monitoring of assigned budgets, including revenue projections, consultant contracts, and operating expenses;

Effectively handle sensitive, confidential information and situations by demonstrating tact, diplomacy, prudence, and independent judgment;

Provide professional leadership and direction to staff, consultants, and cross - functional teams to achieve City real estate and asset management objectives;

Evaluate alternatives, make informed recommendations, and manage research and analytical projects related to real estate assets, and contracts within scope, cost, and to meet timelines;

Operate modern office equipment and specialized software applications;

Communicate clearly and concisely, both orally and in writing;

Regularly and predictably attend work;

Engage in face-to-face meetings;
Real Property Manager City of Newport Beach

Understand and follow posted work rules and procedures;

Accept constructive criticism; and

Establish and maintain cooperative working relationships with those contacted during work.

This position may be required to work outside of normal work schedule as needed.

PHYSICAL REQUIREMENTS AND ENVIRONMENTAL WORKING CONDITIONS :

Work is performed in an office environment and may require occasional travel to off -site facilities. Job duties involve sitting, standing, and walking for prolonged or intermittent periods of time, and reaching, bending, and twisting at the waist to perfor m desk work and operate general office equipment, including a personal computer and keyboard, for prolonged or intermittent periods of time. The operation of a personal computer also requires finger and wrist dexterity and the ability to withstand exposure to vibration, pitch, and glare from the computer. Employee must be able to safely lift and carry books, files and reports weighing up to 25 pounds. Must be able to lift files and reports from counter tops or file drawers.

EXPERIENCE, EDUCATION AND LICENSE &/OR CERTIFICATE: A combination of experience and education which would likely provide the required knowledge and abilities to qualify. A typical way to obtain the knowledge and abilities would be:

Experience: Five years of professional experience in real property development and/or redevelopment, economic development, acquisitions/dispositions, leasing, property management, and complex administration experience in real estate management, including two years of s upervisory experience. Public sector property management experience is preferred.

Education: Equivalent to a bachelor's degree from an accredited college or university with major coursework in business, finance, real estate, or a related field.

License(s): Due to the performance of field duties, which require the operation of a personal or City vehicle, a valid and appropriate California driver’s license and an acceptable driving record are required.

Certificate(s): Possession of, or ability to obtain, a California Brokers license and a valid certification as a Notary Public.

Disaster Service Worker: In accordance with Government Code Section 3100, City of Newport Beach Employees, in the event of a disaster, are considered disaster service workers and may be asked to respond accordingly.

Real Property Manager City of Newport Beach

Employee Group: Key & Management Compensation Plan
FLSA Designation: Exempt
Department: Community Development
Revised: 2/23/2026

Attachment C
Code Enforcement Manager Job Description

CITY OF NEWPORT BEACH

CODE ENFORCEMENT MANAGER

DEFINITION: Under general direction, to plan, organize, and manage the activities and operations of the Code Enforcement D ivision within the Community Development Department; to ensure courteous, professional enforcement of municipal and state codes across areas such as zoning, building and safety standards, noise, short -term lodging, unpermitted beach activity, refuse control, business regulations, and commercial uses in residential zo nes; to oversee illegal dwelling and conditional use permit enforcement programs; and to perform related duties as assigned.

DISTINGUISHING CHARACTERISTICS : This is a management -level classification responsible for overseeing the City’s Code Enforcement D ivision activities and operations. Incumbents independently perform the full scope of code enforcement duties and are expected to exercise substantial independence, initiative, decision making authority, and professional judgment within established policies and guidelines.

SUPERVISION RECEIVED AND EXERCISED: Receives direction from the Community Development Director. Provides direct supervision over assigned Code Enforcement Officers, trainees, and contract staff.

ESSENTIAL DUTIES : The following essential duties are typical for this classification.

Incumbents may not perform all the listed duties and may be required to perform additional or different assignments from those below to address business needs and changing business practices:

• Plans, organizes, and oversees the day-to-day operational management of the Code Enforcement Division, including d etermining and recommending staffing needs to support assigned activities, operations, and projects;

• Ensures compliance and enforcement of municipal and state codes across areas such as zoning, building and safety standards, noise, short -term lodging, unpermitted beach activity, refuse control, business regulations, and commercial uses in residential zones and conducts proactive inspections;

• Oversees illegal dwelling, conditional use permit, and other newly established enforcement programs, including complex case management to ensure timely resolution of complaints, appeals, and public inquiries; directs the issuance of Notices of Violation, Administrative Citations, and related correspondence;

• Plans, organizes, selects, and supervises the work of assigned staff; coaches, motivates, monitors, corrects , and evaluates staff performance; recommends, implements, and provides staff training programs; recommends employee recognition, Code Enforcement Manager City of Newport Beach

discipline, and termination; ensures that City personnel policy and employee agreements are implemented and applied consistently;
• Serves as primary liaison with residents, business owners, city departments, and external agencies to address inquiries, investigate and resolve complex or sensitive issues, and maintain positive working relationships; represents the Code Enforcement Division in meetings and hearings;

• Makes determinations on building safety, such as red- tagging or yellow -tagging properties in unsafe or illegal dwelling situations, based on professional certifications;

• Develops and implements policies and procedures; revises municipal codes to close enforcement gaps and clarify compliance timelines;

• Manages administrative functions, including budget oversight, and contract approvals;

• Oversees workload distribution and supervision of contract staff for seasonal enforcement and hotline operations during peak workload periods;

• Conducts public education and outreach through presentations to community groups and associations;

• Coordinates interdepartmental efforts , including with Police, Public Works, and City Attorney, for joint operations and complex cases;

• Prepares and directs the preparation of a variety of complex analytical, statistical, and narrative records, reports, and correspondence;
• Ensures regulatory compliance by monitoring changes in state legislation and guiding staff through ongoing training and professional development;

• May perform building inspections leveraging Residential Building Inspector certification during staffing shortages; and
• Perform related duties as assigned.

QUALIFICATIONS: To perform this job successfully, an individual must be able to perform each essential duty . The requirements listed below represent the knowledge, skill, and ability required.

Knowledge of:

Applicable state and local laws, regulations, codes, and City policies related to zoning, building and safety standards, noise, short -term lodging, unpermitted Code Enforcement Manager City of Newport Beach

beach activity, refuse control, business regulations, and commercial uses in residential areas;

Principles, practices, and methods of municipal code enforcement, including due process requirements, investigative techniques, and complex case management;

Trends, best practices, and emerging issues in code enforcement programs and regulatory compliance;

Principles and practices of employee supervision, training, and performance evaluations;

Procedures for issuing Notices of Violation, Administrative Citations, and related enforcement correspondence;

Principles and methods of policy development, program evaluation, and municipal code revision;

Public agency budgeting, contract administration, and workload planning;

Building safety standards and inspection practices applicable to red-tag or yellow- tag determinations; and

Principles and practices of effective customer service, community engagement, and public outreach when working with residents, business owners, and other City departments.

Ability to:

Plan, organize, and manage the operations of the Code Enforcement D ivision to ensure timely and consistent enforcement of applicable municipal and state codes;

Interpret, apply, and clearly explain complex codes, ordinances, policies, and enforcement procedures to staff, property owners, business operators, and the public;

Oversee and, when necessary, conduct inspections, investigations, and case management activities, including making safety determinations consistent with professional certifications;

Prepare clear, concise, and comprehensive reports, presentations, policies, code amendments, and correspondence, and ensure the maintenance of accurate records;

Code Enforcement Manager City of Newport Beach

Select, mentor, train, and evaluate staff; establish performance expectations; implement corrective or disciplinary actions in accordance with City policies; and provide oversight of consultants and contract staff as appropriate;

Coordinate joint enforcement efforts with internal departments and external agencies and represent the City in meetings, hearings, and enforcement proceedings;

Participate in the preparation, management, and monitoring of assigned budgets, contracts, resource allocation, and administrative functions of the division;

Effectively handle sensitive, confidential information and situations by demonstrating tact, diplomacy, prudence, and independent judgment;

Deliver effective public outreach, education, and communication to community groups, merchant associations, and residents;

Monitor changes in legislation, assess operational impacts, and guide staff through ongoing training and professional development;

Communicate clearly and concisely, both orally and in writing;

Regularly and predictably attend work;

Engage in face-to-face meetings;

Understand and follow posted work rules and procedures;

Accept constructive criticism; and

Establish and maintain cooperative working relationships with those contacted during work.

This position may be required to work outside of normal work schedule as needed.

PHYSICAL REQUIREMENTS AND ENVIRONMENTAL WORKING CONDITIONS :

While performing the duties of this job, the employee is frequently required to walk, sit, talk, or hear. The employee is occasionally required to use hands to finger, handle, feel, or operate objects, tools, or controls and reach with hands and arms. The employee is occasionally required to climb, balance, stoop, kneel, crouch, or crawl. The employee must regularly lift and/or move up to 50 pounds. Specific vision abilities required by this job include close vision, color vision, and the ability to adjust focus. The employee will work indoors and outdoors and may occasionally be exposed to wet and/or humid conditions. The noise level in the work environment is usually quiet while in the office and Code Enforcement Manager City of Newport Beach

moderate when in the field. The location of the position may be at a recreation center, senior center, beach, bay, or harbor.

EXPERIENCE, EDUCATION AND LICENSE &/OR CERTIFICATE: A combination of experience and education which would likely provide the required knowledge and abilities to qualify. A typical way to obtain the knowledge and abilities would be:

Experience: Five years of increasingly responsible code enforcement and compliance experience, including two years in a supervisory or lead role.

Education: Equivalent to completion of an Bachelor’s degree in criminal justice, public administration, business administration, planning, engineering, or a related field is required.

License(s): Due to the performance of some field duties , which require the operation of a personal or City vehicle, a valid and appropriate California driver’s license and an acceptable driving record is required.

Certificate(s): Possession of Penal Code Section 832 (POST Certificate) certification. Residential Building Inspector certification and advanced professional code enforcement training certifications are highly desirable.

Disaster Service Worker: In accordance with Government Code Section 3100, City of Newport Beach Employees, in the event of a disaster, are considered disaster service workers and may be asked to respond accordingly.

Employee Group: Key & Management Compensation Plan
FLSA Designation: Exempt
Department: Community Development
Revised: 2/23/2026

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

March 10, 2026
Agenda Item No. 4
ABSTRACT:

Senate Bill (SB) 1205 amended the California Health and Safety Code to expand reporting on mandated annual fire and life safety inspection s. Prompted by the tragic "Ghost Ship Fire," in 2016, the legislation requires fire departments to report their compliance with health and safety codes related to annual inspections of hotels, motels, lodging houses and apartment buildings by way of City Council resolution.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Adopt Resolution No. 2026-17, A Resolution of the City Council of the City of Newport Beach Acknowledging Receipt of a Report Made by the Fire Marshal of the City of Newport Beach Fire Department Regarding Compliance with the Annual Inspection of Certain Occupancies Pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code.

DISCUSSION:

California Health and Safety Code Section 13146.4, established by SB 1205, requires all fire departments providing fire protection services to annually report to their administering authority confirming compliance with Sections 13146.2 and 13146.3. These existing sections mandate annual building standard inspections for every building used as a public or private school, hotel, motel, lodging house, apartment house, as well as certain residential care facilities. The Newport Beach Fire Department, through its fire prevention TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jeff Boyles, Fire Chief - 949-644-3101, [email protected] PREPARED BY: James Gillespie, Fire Marshal - 949-644-3354, [email protected] TITLE: Resolution No. 2026-17: A Report Made by the Fire Marshal Regarding Compliance with the Annual Inspection of Certain Occupancies
Resolution No. 2026-17: A Report Made by the Fire Marshal Regarding Compliance with the Annual Inspection of Certain Occupancies
March 10, 2026

division, completes these inspections annually and is reporting 100% compliance for all identified facilities for the period of January 1, 2025, through December 31, 2025.

FISCAL IMPACT:

There is no fiscal impact related to this item . Annual inspections are already regularly conducted by staf f, and the City of Newport Beach bills each identified facility for the required inspection based upon the City’s established Schedule of Rents, Fines and Fees.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable ind irect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENT:

Attachment A – Resolution No. 2026-17

RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF NEWPORT BEACH, CALIFORNIA,

ACKNOWLEDGING RECEIPT OF A REPORT MADE BY

THE FIRE MARSHAL OF THE CITY OF NEWPORT

BEACH FIRE DEPARTMENT REGARDING

COMPLIANCE WITH THE ANNUAL INSPECTION OF

CERTAIN OCCUPANCIES PURSUANT TO SECTIONS
13146.2 AND 13146.3 OF THE CALIFORNIA HEALTH

AND SAFETY CODE
WHEREAS, Section 200 of the City Charter, of the City of Newport Beach ("City"), vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the City Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges or procedures granted or prescribed by any law of the State of California;
WHEREAS, Sections 13146.2 and 13146.3 of the California Health and Safety Code ("Health and Safety Code") require all fire departments that provide fire protection services, including the Newport Beach Fire Department ("NBFD"), to perform annual inspections in certain buildings pursuant to Sections 13146.2 and 13146.3, including those used as public or private schools, hotels, motels, lodging houses, apartment houses, and certain residential care facilities in the City for compliance with building standards, as provided in the California Building Code ("Building Code"); WHEREAS, Health and Safety Code Section 13146.4 requires every city or county fire department or district that provides fire protection services to report annually to their administering authority on their compliance with Health and Safety Code Sections 13146.2 and 13146.3;
WHEREAS, the City Council has received the report prepared by the NBFD Fire Marshall regarding compliance with the annual inspection of certain occupancies pursuant to Sections 13146.2 and 13146.3 of the Health and Safety Code; and WHEREAS, this Resolution fulfills the requirements of Health and Safety Code Section 13146.4 regarding acknowledgement of the NBFD's compliance with Health and Safety Code Sections 13146.2 and 13146.3.

NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:

Attachment A
17 Resolution No. 2026-

Section 1: The City Council does hereby acknowledge the compliance of the Newport Beach Fire Department with Health and Safety Code Sections 13146.2 and 13146.3 for the time period of January 1, 2025 to December 31, 2025, in the following required areas:
• Applicable Group E occupancies, as defined in Title 24, Section 305.2 of the Building Code. The Newport Beach Fire Department completed 100 percent of the annual inspections of the applicable Group E occupancies , buildings, structures , and/or facilities in the City.
• Applicable Group R occupancies, as defined in Title 24, Section 310 of the Building Code. NBFD completed 100 percent of the annual inspections of the applicable Group R occupancies, buildings, structures , and/or facilities in the City.

Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution.

Section 3: If any section, subsection , sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional , such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences , clauses or phrases be declared invalid or unconstitutional.

Section 4: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060( c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment , directly or indirectly.

Resolution No. 2026-

Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution .

ADOPTED this 10th day of March, 2026.

ATTEST:

Lena Shumway
City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY 'S OFFICE
4-- c_ K~-
A~ro C. Harp
City Attorney
Lauren Kleiman
Mayor

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

March 10, 2026
Agenda Item No. 5
ABSTRACT:

The proposed resolution amends the structure, appointment process, qualifications and terms of the City’s Finance Committee (Committee) based on recommendations from the Fiscal Transparency Ad Hoc Committee. The amendments are intended to enhance fiscal oversight by adding Committee members with relevant expertise , improve transparency by daylighting all Committee discussion items at City Council meetings, and ensure efficient use of staff time and resources.

The Committee would consist of five members, three Council members appointed annually by the Mayor, and two citizen members, appointed by the Mayor and confirmed by the City Council. The resolution establishes enhanced professional qualification requirements for citizen appointees, implements two -year terms beginning July 1, 2026, allows for completion of the current budget cycle and includes transition provisions for current members.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060( c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Adopt Resolution No. 2026-18, A Resolution of the City Council of the City of Newport Beach, California, Amending the Selection Process and Various Responsibilities of the Finance Committee.

DISCUSSION:

The Committee was originally established by Resolution No. 94 -110 on December 12, 1994. Since its creation, the City Council has periodically amended the Committee’s structure and responsibilities to ensure continued fiscal stewardship and alignment with evolving best practices in municipal finance.

Periodic evaluation of advisory bodies ensures continued alignment with best practices and evolving governance needs.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason Al-Imam, Adminstrative Services Director/Treasurer - 949- 644-3126, [email protected]
PREPARED BY: Jason Al-Imam, Administrative Services Director/Treasurer TITLE: Resolution No. 2026-18 – Amending the Selection Process and Various Responsibilities of the Finance Committee
Resolution No. 2026-18 – Amending the Selection Process and Various Responsibilities of the Finance Committee
March 10, 2026

On January 27, 2026, the City Council adopted Resolution No. 2026 -05 establishing the Fiscal Transparency Ad Hoc Committee, composed of Mayor Lauren Kleiman and Councilmembers Sara Weber and Joe Stapleton. The Ad Hoc Committee was directed to evaluate ways to enhance transparency, accountability and the efficient use of City resources; broaden policy perspectives; increase public engagement in discussions regarding the City’s fiscal governance and financial status; and make related recommendations to the full City Council.

The proposed amendments to the Committee are based on the input and direction provided by the Fiscal Transparency Ad Hoc Committee and are intended to address each of the directives outlined above. The discussion below explains the policy rationale for the proposed changes in relation to transparency, accountability, efficiency, policy perspective and public engagement.

Alignment with Ad Hoc Committee Directives

1. Transparency and Public Engagement
Committee meetings are subject to the Brown Act; however, public attendance at regular Committee meetings has historically been limited. In recent years, average in -person public attendance has generally consisted of approximately three members of the public or fewer, excluding staff and Committee members. While meetings are open and agendas publicly posted, discussion at the Committee level does not always generate the same level of public visibility or engagement as items agendized for full City Council consideration.

Over the past two ye ars, the Committee has discussed a number of significant fiscal matters, including but not limited to long -range financial forecasts, quarterly budget updates, capital financing strategies, pension and other post-employment benefit (OPEB) funding strategie s, internal audit updates, revenue projections, and investment policy matters. In several instances, these items were reviewed at the Committee level but were not subsequently presented to the full City Council as standalone discussion items, thereby limiting broader public visibility and recorded Council deliberation.

Under the proposed structure, the Committee will function more clearly as a technical working group, with key policy recommendations and major fiscal matters presented to the full City Counci l for discussion and action. This approach is intended to “daylight” significant financial topics at publicly televised Council meetings where a larger audience typically attends or participates remotely, thereby enhancing transparency and public engagement in the City’s fiscal governance.

2. Accountability and Efficient Use of City Resources
The Committee currently meets approximately nine to 10 times per year. Each meeting requires substantial staff preparation, including agenda development, report drafting, financial analysis, coordination among departments, posting and noticing requirements, and attendance by executive and finance staff. Collectively, these meetings require a Resolution No. 2026-18 – Amending the Selection Process and Various Responsibilities of the Finance Committee
March 10, 2026

significant number of staff hours annually in preparation and participation.

The p roposed structure contemplates reducing the number of regular meetings to approximately five to six per year, focused on core fiscal planning milestones and technical review of major financial items. By streamlining the meeting schedule and clarifying the Committee’s advisory role, the City can reduce duplicative presentations and better align staff resources with Council-level decision-making.

This modification is intended to improve the efficient use of City resources while preserving meaningful fiscal review and oversight.

3. Broadening Policy Perspectives and Enhancing Technical Expertise Under the current structure, the enabling resolution recommends but does not require that citizen appointees possess financial credentials such as a CPA, CFA, business or finance degree, or other relevant designation. In practice, applicants for appointment have been required to submit a formal application for City Council consideration, including disclosure of their educational background, occupational history, civic exper ience, references and a résumé. The City Council has historically reviewed this information when making appointments.

While this process has provided transparency regarding applicants’ qualifications, the existing resolution does not establish minimum qualification standards specific to finance or municipal fiscal oversight. As a result, the level and type of financial expertise represented on the Committee may vary depending on the applicant pool and the appointing Council’s discretion at a given time.

The proposed resolution establishes enhanced qualification requirements for citizen appointees. Under the proposed structure, citizen members must possess demonstrated education, professional certification, or significant professional experience in financ e, accounting, economics, business administration, public administration, investment management, or a closely related field.

Qualifying experience may include service in financial management, business, legal, consulting, or executive leadership roles invol ving financial oversight, budgeting, investments, fiscal policy, or similar responsibilities.

By codifying baseline qualification criteria within the enabling resolution, the proposed amendments are intended to formalize expectations for subject matter exp ertise and ensure consistent technical capacity on the Committee going forward. Establishing baseline financial qualifications is also intended to broaden policy perspectives by ensuring that fiscal discussions incorporate professional, real -world experien ce in budgeting, investments, and financial management, thereby enhancing the depth and diversity of policy analysis provided to the City Council. This change is designed to strengthen the Committee’s ability to provide informed, experience-based fiscal analysis while preserving the City Council’s discretion in evaluating and appointing qualified applicants.

Resolution No. 2026-18 – Amending the Selection Process and Various Responsibilities of the Finance Committee
March 10, 2026

Summary of Proposed Changes
The proposed resolution makes several substantive modifications to the Committee’s structure and responsibilities, summarized below.

1. Committee Composition and Appointment Process
Current Structure ( seven Members):
 Three Councilmembers appointed by the Mayor, subject to full Council approval.  Four citizen appointees appointed individually by Councilmembers not serving on the Committee, subject to full Council approval. The enabling resolution recommends, but does not require, that appointees possess financial credentials, and does not establish mandatory minimum qualification standards.

Proposed Structure (five Members):
 Three Councilmembers appointed annually by the Mayor.  Two citizen members with financial expertise, vetted by a City Council committee, appointed by the Mayor, and confirmed by the full City Council.

The proposed structure reduces the Committee from seven to five members and eliminates the practice of individual Council members directly appointing a designated citizen representative. Instead, citizen members will be selected through a City Council – wide appointment process of noticing the vacancies, vetting applications, and interviewing qualified applicants, consistent with Council Policy A-2.

2. Citizen Appointee Qualifications
The proposed resolution establishes enhanced qualification requirements for citizen appointees. Under the proposed structure, citizen members must possess demonstrated education, professional certification, or significant professional experience in finance, accounting, economics, business administration, public administration, investment management, or a closely related field.

Qualifying exp erience may include service in financial management, business, legal, consulting, or executive leadership roles involving financial oversight, budgeting, investments, fiscal policy, or similar responsibilities.

The City Council will determine whether appli cants meet the qualification requirements prior to appointment.

These changes are intended to ensure that citizen appointees possess the technical expertise necessary to provide meaningful fiscal input and analysis.

3. Term Modifications and Transition Provisions
Resolution No. 2026-18 – Amending the Selection Process and Various Responsibilities of the Finance Committee
March 10, 2026

The proposed resolution provides:
 Current citizen appointees will continue to serve through June 30, 2026.  Effective June 30, 2026, the terms of all current citizen appointees will expire.  Beginning July 1, 2026, new citizen appointees will serve two-year terms and may be reappointed for one additional two-year term.

This transition allows for continuity through the end of the fiscal year while implementing the new structure in a clear and orderly manner.

4. Clarification of Purpose and Responsibilities
The proposed resolution refines and modernizes the Committee’s purpose statement to clarify that the Committee serves in an advisory capacity to the City Council and City Manager on matters related to:
 The City’s operating budget;
 Long-range financial planning and fiscal sustainability;  Pension and other post-employment benefit liabilities;  Capital financing; and
 The internal audit program.

The responsibilities section has been reorganized to improve clarity and alignment with current financial oversight practices.

For reference, a tentative annual work plan and meeting calendar outlining the types of items expected to be reviewed by the Committee under the proposed structure and responsibilities, as well as items to be brought directly to the City Council, is includ ed as Attachment B.

The proposed amendments preserve public engagement, as the Committee meetings will continue to comply with the Brown Act, including publicly posted agendas, open meetings, and opportunities for public comment. The City’s budget process will remain transparent and subject to public participation.

Resolution No. 2026-18 – Amending the Selection Process and Various Responsibilities of the Finance Committee
March 10, 2026

FISCAL IMPACT:

There are no direct fiscal impacts associated with the proposed amendments to the Committee structure.

City staff estimates that approximately 485 hours annually are devoted to pr eparing for and attending Committee meetings, including agenda preparation, development of reports and presentations, internal review and coordination, and meeting attendance. Any modification to the Committee’s structure or meeting frequency may result in corresponding adjustments to staff time commitments; however, no additional appropriations are required as a result of this action.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Resolution No. 2026-18
Attachment B – Tentative Finance Committee & Council Review Schedule

Attachment A
Resolution No. 2026-18
RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWPORT BEACH, CALIFORNIA, AMENDING THE

SELECTION

RESPONSIBILITIES OF THE FINANCE COMMITTEE

PROCESS AND VARIOUS
WHEREAS, the Cityof Newport Beach (“City”)isgoverned, in part,by itsCharter, MunicipalCode, and adopted CityCouncil Policies;
WHEREAS, the City Council has a long and established historyof being good guardians and stewards ofthe public’smoney;
WHEREAS, appropriations,expenditures, and other budgetary matters are a primary concern ofthe CityCouncil;
WHEREAS, on December 12, 1994, the CityCouncil adopted Resolution No. 94- 110 establishingthe Finance Committee, whose dutiesand responsibilitieshave been amended throughout the years to furtherprotectand safeguard the public’smoney; WHEREAS, the Finance Committee ischarged with a varietyof tasks including, but not limitedto,reviewing and monitoringevents and issues thatmay affectthe financial status of the City and making recommendations to the City Council regarding amendments to financialpolicies;
WHEREAS, the existingFinance Committee iscomposed of three City Council Members, appointed by the Mayor subjectto City Council approval, and four citizen members, appointedby CouncilMembers noton the Finance Committee, subjectto City Council approval;
WHEREAS, the City Council desires to preserve the Finance Committee’s purpose and bolsteritsabilitytoprovidequalifiedoversightof the City’sfiscalprocesses, while increasingpublicvisibilityand transparency;and
WHEREAS, the CityCouncildesiresto amend the Finance Committee selection process and responsibilities,as describedinthisresolution.

NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:

Section 1: The CityCouncil hereby amends the Finance Committee selection processand responsibilitiesas describedinAttachment“A,”which isincorporated herein by reference.
18 Resolution No. 2026-

The CityCouncil hereby repeals allpriorresolutions,or parts thereof, related to the Finance Committee that conflict with this resolution.

Section 2:

If any section, subsection, sentence, clause or phrase of this resolutionisforany reason held to be invalidor unconstitutional, such decision shall not affectthe validityor constitutionalityofthe remaining portionsof thisresolution.The City Council hereby declares that itwould have passed this resolution and each section, subsection, sentence, clause or phrase hereof, irrespectiveof the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 3:

The recitalsprovided in thisresolutionare true and correct and are incorporatedintothe substantiveportionofthisresolution.

Section 4:

The City Council finds the adoption of this resolutionand theSection 5:
amendment of the Finance Committee is not subject to the California Environmental QualityAct (“CEQA”) pursuant to Sections 15060(c)(2)(the activitywillnot resultin a direct or reasonably foreseeable indirectphysical change in the environment) and 15060(c)(3)(the activityis not a projectas defined in Section 15378) of the CEQA Guidelines,CaliforniaCode of Regulations,Title14, Division6, Chapter 3, because ithas no potentialforresultinginphysicalchange tothe environment, directlyor indirectly.

Resolution No. 2026-

This resolutionshalltake effectimmediately upon itsadoption by the CityCouncil,and the CityClerk shallcertifythe vote adopting thisresolution.

Section 6:

ADOPTED this10th day of March, 2026.

Lauren Kleiman
Mayor
ATTEST:

Lena Shumway
City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY’S OFFICE
Aaron C. Flarp
City Attorney
Attachment A: Amended Finance Committee Description

ATTACHMENT “A”

FINANCE COMMITTEE

AUTHORIZATION:

MEMBERSHIP:

Established by Resolution No. 94 -110 adopted on
December 12, 1994. Modified by Resolution No. 96-100
adopted on December 9, 1996. Disbanded by Resolution
No. 98 -32 adopted on May 11, 1998. Re -established by
Resolution No. 2000-103 adopted on December 12, 2000 .

Duties and membership amended by Resolution No. 2007-
21 adopted on April 10, 2007. Purpose and responsibilities amended by Resolution No. 2013-32 adopted on April 9,
2013. Membership, qualifications and term of members, and purpose and responsibilities amended by Resolution No.
2015-5 adopted on January 13, 2015. Administrative
practices amended by Resolution No. 2015 -40 adopted on May 26, 2015. Term of citizen appointees amended by
Resolution No. 2017-58 adopted on September 12, 2017.

Various other changes amended by Resolution No. 2018-70 adopted on September 25, 2018. Term of membership
amended by Resolution 2024 -91 on December 10, 2024.

Selection process and responsibilities amended by
Resolution 2026-__ on March 10, 2026.

Five (5) members total, comprised of the following:

Three (3) members of the Newport Beach City Council
appointed by the Mayor.

Two (2) citizen members appointed by the Mayor and
confirmed by the full City Council (“Citizen Appointees”). At the Mayor’s discretion, the Mayor may establish an Ad Hoc Committee to provide advice; however, whether such a
committee is formed, the Mayor s hall make the
appointments subject to confirmation by the City Council.

Citizen Appointees have equal vot ing status. The Mayor shall appoint the chairperson and vice-chairperson, subject to confirmation by the full City Council.

Staff support will be provided primarily by the City Manager and the Administrative Services Director.

Meetings shall be held as required by the business needs of the Finance Committee in the City Council Chambers , or

TERM OF COUNCIL
MEMBERS:

TERM OF CITIZEN
APPOINTEES:

QUALIFICATIONS OF

CITIZEN
APPOINTEES:

such other locations as allowed by the Ralph M. Brown Act, on weeknights or weekdays (M -Th) at a time that is
convenient for the Finance Committee and the public to
encourage public participation.

Council Members shall be appointed annually by the Mayor.

A. Transition. All previously appointed Citizen
Appointees of the Committee shall continue to
serve until June 30, 2026, at which time their terms
shall end . New Citizen Appointees shall be
selected in accordance with Council Policy A -2, as
modified herein, and shall begin their terms on July
1, 2026.

B. New Citizen Appointee Term of Office . Citizen
Appointees shall serve a two -year term, or until
their successor is appointed and qualified, unless
the City Council takes action to replace a Citizen
Appointee. Citizen Appointees may serve a second
two-year term if reappointed by the City Council.

A. Must be a resident of the City of Newport Beach.

B. Must be a registered voter in the City of Newport
Beach.

C. Each Citizen Appointee shall possess
demonstrated education, professional certification,
or significant professional experience in finance,
accounting, economics, business administration,
public administration, investment management, or
a closely related field.

Qualifying experience may include service in financial
management, business, legal, consulting, or executive
leadership role involving financial oversight, budgeting, investments, fiscal policy, or similar responsibilities.

The Mayor shall determine whether an applicant meets
the qualification requirements prior to appointment.

PURPOSE:

RESPONSIBILITIES:

The Finance Committee shall serve in an advisory capacity to the City Council and City Manager on matters related to the City’s operating budget, long -range financial planning, fiscal sustainability, investment performance, pension and other post -employment benefit liabilities, capital financing, and internal financial oversight.

A. Review and monitor the City’s financial condition
and economic outlook, including factors that may
materially affect revenues, expenditures, reserves,
and long-term fiscal sustainability.

B. In accordance with Sections 504 and 1101 of the
City Charter, review the City Manager’s proposed
operating budget and give recommendations to the
City Manager. Any changes the Committee
recommends to the City Manager’s Budget shall be
provided in writing to the City Council along with the
budget presented by the City Manager.

C. Review the final City Manager’s operating budget
and make recommendations fo r City Council
consideration.

D. Review the City’s Long -Range Financial Forecast
and provide recommendations to promote long -
term fiscal sustainability.

E. Review major long -term capital and infrastructure
financing plans, including but not limited to the
Facilities Financing Plan and Harbor and Beaches
Master Plan, to assess alignment with the City’s
budget and financial capacity.

F. Review the City’s long -term pension and other
post-employment benefit obligations, including the
CalPERS Pension Liability reports and the OPEB
Actuarial Valuation Report, and provide
recommendations regarding funding strategies and
policies.

G. Review the City’s Internal Audit Program and
receive reports regarding significant audit findings,
internal control matters, and management
responses.

H. When requested by the City Council, m ake

recommendations to the City Council regarding any
other matter affecting the financial health and fiscal
sustainability of the City.

Attachment B
Tentative Finance Committee & Council Review Schedule

Tentative Finance Committee & Council Review Schedule

ITEM FOR REVIEW COMMITTEE

CONSIDERATION

CITY COUNCIL
REVIEW
Financial Statement Auditor’s
Communication
N/A January
Economic Development Update

February As Needed
General Fund and Tidelands
Long Range Financial Forecast
Update

February As Needed
Facilities Financing Plan and
Harbor & Beaches Master Plan

February Planning Session
Second Quarter Budget Update

February February-March
Departmental Overviews N/A As Needed
Fee Study Update N/A April-May
Overview of Proposed
Revenues and Expenditures for
Next Year’s Budget

April May-June
Committee Recommendation to
Council for Next Year’s Budget

May N/A
Third Quarter Budget Update

May May-June
Review of Investment
Performance
N/A September
Investment Policy Review N/A September-October
Year-End Budget Results and
Surplus Allocation

October October-November
First Quarter Budget Update

November November-December
Internal Audit Program Update

November As Needed
OPEB Actuarial Valuation
Report Update

November N/A
CalPERS & Pension Trust
Update

November March-April

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

March 10, 2026
Agenda Item No. 6
ABSTRACT:

The City of Newport Beach received construction bids for the Street Pavement Repair Program Fiscal Year 2025-26 project and requests City Council approval to award the construction contract to Onyx Paving Company, Inc. of Yorba Linda . The project wil l remove and re place deteriorated asphalt pavement in the Eastbluff, North Ford, Santa Ana Heights, Bayview Heights and Airport Area communities, in addition to various City parks.

RECOMMENDATIONS:
a) Find this project exempt from the California Environmental Quality Ac t (CEQA) pursuant to Section 15301 (c), Class 1 (maintenance of existing public facilities involving negligible or no expansion of use) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) Approve the project plans and specifications;
c) Approve Budget Amendment No. 26-057 appropriating $ 224,200.15 in increased expenditures in Account No. 01201927-980000-26R03 from the General Fund CIP unappropriated fund balance , $3,333 in new revenue and expenditures from Irvine Ranch Water District to Account No s. 13501-431220-26R03 and 13501-980000- 26R03, respectively and $18,666 in new revenue and expenditures from Orange County Sanitation District to Account Nos. 13501-431075-26R03 and 13501-980000- 26R03, respectively;
d) Award Contract No . 9946-1 to Onyx Paving Company, Inc. for the total bid price of $1,082,000 for the Street Pavement Repair Program FY 2025 -26 project, and authorize the Mayor and City Clerk to execute the contract; and e) Establish a contingency of $110,000 (approximately 10% of the total bid) to cover the cost of unforeseen work not included in the original contract.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Andy Tran, Assistant City Engineer - 949-644-3315, [email protected]
TITLE: Street Pavement Repair Program Fiscal Year 2025-26 – Award of Contract No. 9946-1 (26R03)
Street Pavement Repair Program Fiscal Year 2025-26 – Award of Contract No. 9946-1 (26R03)
March 10, 2026

DISCUSSION:

The proposed project is located in the Eastbluff, North Ford, Santa Ana Heights, Bayview Heights and Airport Area communities, in addition to various City parks . Proposed improvements include reconstructing isolated portions of deteriorated asphalt concrete pavement, lowering and raising manhole frames, replacing utility boxes and lids, replacing and resetting survey monument boxes , and installing new traffic striping. These improvements are needed to prepare for the upcoming annual slurry seal program, which will be in the same communities.

At 10 a.m. on February 10, 2026, the City Clerk opened and read the following bids for this project:

BIDDER TOTAL BID AMOUNT
Low Onyx Paving Company, Inc. $ 1,082,000
2nd LCR Earthwork & Engineering, Corp. $ 1,186,850
3rd Hardy & Harper, Inc. $ 1,332,000
4th All American Asphalt, Inc. $ 1,334,720
5th R.J. Noble Company $ 1,427,945
6th Sequel Contractors, Inc. $ 1,447,400
7th Van Engineering, Inc. $ 1,620,800
8th Excel Paving $ 1,874,530
9th Paveco Construction $ 1,967,530

The City received nine bids. The low bidder, Onyx Paving Company, Inc. , possesses a California State Contractor ’s License Classification “A”, as required by the project specifications. A review of references for Onyx Paving Company, Inc. shows satisfactory completion of similar contracts for other municipalities.

Onyx Paving Company, Inc.’s bid was 4% below the engineer’s estimate of $1,127,000.

The difference between the low bid and the engineer’s estimate is negligible. Pursuant to the contract specifications, the contractor will have 40 consecutive working days to complete the project. Work is scheduled to start in April 2026.

The project plans and specifications will be available for review at the March 10, 2026, City Council meeting or upon request.

FISCAL IMPACT:

Upon approval of the proposed budget amendment, the adopted Capital Improvement Program budget includes sufficient funding for the award of this contract. The budget amendment appropriates $224,200.15 in increased expenditures from the General Fund Capital Improvement Program (CIP) unappropriated fund balance, $3,333 in contributions from the Irvine Ranch Water District (IRWD), and $18,666 in contributions from the Orange County Sanitation District (OC San). The following funds will be expended:

Street Pavement Repair Program Fiscal Year 2025-26 – Award of Contract No. 9946-1 (26R03)
March 10, 2026

Account Description Account Number Amount
General Fund CIP 01201927-980000-25R03 $ 73,186.16
General Fund CIP 01201927-980000-26R03 $ 1,092,818.84
Water Capital 70201-980000-24R09 $ 20,470.32
Water Capital 70201-980000-26R09 $ 2,860.68
Wastewater Enterprise 71101-980000-24R09 $ 16,665.00
OC San Contribution Fund 13501-980000-26R03 $ 18,666.00 IRWD Contribution Fund 13501-980000-26R03 $ 3,333.00
Total: $ 1,228,000.00
Proposed fund uses are as follows:

Vendor Purpose Amount
Onyx Paving Company, Inc. Construction Contract $ 1,082,000.00 Onyx Paving Company, Inc. Construction Contingency $ 110,000.00 Harrington Geotechnical, Inc. Materials Testing $ 33,400.00 Various Printing & Incidentals $ 2,600.00
Total: $ 1,228,000.00

Water and Wastewater Enterprise funds generate revenue primarily through water and sewer rates collected from service users. The Orange County Sanitation District and Irvine Ranch Water District contributions will be used to reimburse the City for improvements to their facilities.

Staff recommends establishing $ 110,000 (approximately 10 % of the total bid) for contingency purposes and unforeseen conditions associated with construction.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(c), Class 1 (maintenance of existing public facilities involving negligible or no expansion of use) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Location Map
Attachment B – Budget Amendment

CITY OF NEWPORT BEACHPUBLIC WORKS DEPARTMENT

ATTACHMENT A
I:\Users\PBW\Shared\Contracts\FY25-26 CURRENT\200_STREET_DRAIN\Street Pvmt Rpr Prog FY 25-26 C-9946-1_26R03\COUNCIL MEMOS\AOC\Location Map_9946-1.dwg 02/13/26 - 8:17am DJordanLOCATION MAP

PROJECTLOCATIONS

PROJECTLOCATIONS
C-9946-103/10/202626R03
STATE ROUTE 73
WEST

EASTBLUFF

JAMBOREE
STREET PAVEMENT REPAIRPROGRAM FY 2025-26
SAN

HILLS RDJOAQUIN

FORD RD

NORTHFORD

SANTA ANAHEIGHTSAIRPORTAREA

BAYVIEW
RD

JAMBOREE
RD
IRVINE
AVE

BRISTOL ST

MACARTHUR
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DOVER
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MACARTHUR
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COASTHWY

BACKBAYDR

BISONAVE

UPPERBACK BAY

LOWERBACK BAY
Attachment B

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

March 10, 2026
Agenda Item No.7
ABSTRACT:

The City of Newport Bea ch’s agreement with SafeRock for restroom security service s expires April 1 4, 2026, and is nearing its current not -to-exceed funding limit. Staff requests City Council approval of an amendment increasing the total contract amount by $40,000 for a new total not-to-exceed amount of $160,000 and extending the term of the agreement to September 30, 2026 (amended 03/09/2026 to reflect correct date ), to finalize operations and the City’s transition to automatic locks.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Approve Amendment No. Two to the Professional Services Agreement with SafeRock for Restroom Security Services for an additional $40,000 for a new not-to-exceed amount of $160,000 and extend the term of the agreement to September 14, 2026, and authorize the Mayor and City Clerk to execute the agreement.

DISCUSSION:

The City currently contracts with SafeRock to provide public restroom security services at City parks and beach locations. These services include nightly restroom patrols to inspect restrooms before and during closure to ensure that no individuals remain inside before the facilities are locked.

City public restrooms are closed daily at 10 p.m. and reopen the following morning at 6 a.m. Security patrols conducted bef ore closure have proven effective in preventing overnight occupancy and deterring vandalism. Since implementation of these services, TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Kyle Brodowski, Equipment and Facilities Superintendent - 949-718-3464, [email protected]
TITLE: Approval of Amendment No. Two to Professional Services Agreement with SafeRock for Restroom Security Services
(Contract No. 9576-1)

Approval of Amendment No. Two to Professional Services Agreement with SafeRock for Restroom Security Services (Contract No. 9576-1)
March 10, 2026

incidents of restroom vandalism and unauthorized overnight use have significantly reduced.

The City recently contracted wit h Modern General Contractors to construct and install automatic locking security gates at public restrooms in the parks and at beach locations.

Once completed, these gates should eliminate the need for supplemental nightly security patrols to secure the r estrooms. The automatic gate installation project is scheduled for completion in June 2026. To ensure a smooth transition to the automated system, staff requests authorization to extend the agreement with SafeRock through September 14, 2026. Staff’s intent would be to stop the supplemental security services at the conclusion of the gate retrofit project , but would like to maintain the ability to use the contracted service through September should a need arise over the summer. This will also allow time for staff to evaluate the new system before fully closing out the nightly patrol services contract.

FISCAL IMPACT:

The adopted budget includes sufficient funding for these additional services and will be expensed to the Building Maintenance and Repair account i n the Public Works Department, 0108541-811017.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this project exempt from the Califor nia Environmental Quality Act (CEQA) pursuant to Section [insert exemption section number (short description of section)] of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advanc e of the meeting at which the City Council considers the item).

ATTACHMENT:

Attachment A – Professional Services Agreement
AMENDMENT NO. TWO TO

PROFESSIONAL SERVICES AGREEMENT

WITH SAFEROCK FOR

RESTROOM SECURITY SERVICES
THIS AMENDMENT NO. TWO TO PROFESSIONAL SERVICES AGREEMENT ("Amendment No. Two") is made and entered intoas of this 10th day of March, 2026 ("EffectiveDate"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city("City"),and SafeRock, a Californiacorporation ("Consultant"),whose address is26052 Marguerite Parkway, Mission Viejo,CA 92692, and ismade with reference to the following:

RECITALS
A. On April 15, 2024, City and Consultant entered into a Professional Services Agreement (Contract No. C-9576-1) ("Agreement") to provide restroom security services ("Project").

B. On April10, 2025, City and Consultant entered intoAmendment No. One to the Agreement ("Amendment No. One") to extend the term of the Agreement to April 14, 2026.

C. The partiesdesire to enter into thisAmendment No. Two to extend the term of the Agreement to September 30, 2026, revisethe Administrationsection,update City's contact for notices,and to increase the totalcompensation foradditionalServices to be performed.

NOW, THEREFORE, itismutuallyagreed by and between the undersigned parties as follows:

1. TERM
Section 1 of the Agreement is amended in itsentiretyand replaced with the following:"The term of thisAgreement shallcommence on the EffectiveDate, and shall terminate on September 30, 2026, unless terminated earlieras setforthherein."

2. COMPENSATION TO CONSULTANT
Section 4.1 of the Agreement is amended in itsentiretyand replaced with the following:"Cityshallpay Consultant forthe Services on a time and expense not-to-exceed basis in accordance with the provisionsof thisSection and the Schedule of BillingRates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation forallWork performed in accordance with thisAgreement, includingall reimbursable items and subconsultant fees, shall not exceed One Hundred Sixty Thousand Dollars and 00/100 ($160,000.00), withoutpriorwrittenauthorizationfrom City.No billingratechanges shallbe made duringtheterm ofthisAgreement withoutthe priorwrittenapproval of City."
The totalamended compensation reflectsConsultant's additionalcompensation for additionalServices to be performed in accordance with thisAmendment No. Two, SafeRock Page 1
Attachment A
including allreimbursable items and subconsultant fees, in an amount not to exceed Forty Thousand Dollars and 00/100 ($40,000.00).

3. ADMINISTRATION
Section 6 of the Agreement is amended in itsentiretyand replaced with the following:"ThisAgreement willbe administeredby The MunicipalOperations Department.

City'sDirectorofMunicipalOperationsordesigneeshallbe the ProjectAdministratorand shallhave the authorityto act forCity under thisAgreement. The ProjectAdministrator shallrepresent City in allmatters pertainingto the Services to be rendered pursuant to thisAgreement."

4. NOTICES
Section 25.2 of the Agreement isamended in itsentiretyand replaced wit the following:"Allnotices,demands, requests or approvals from Consultant to City shallbe addressed to Cityat:

Attn:Municipal Operations Directorand Directorof Public Works Municipal Operation Department and PublicWorks
100 Civic Center Drive
Newport Beach, CA 92660"

5. INTEGRATED CONTRACT
Except as expressly modified herein,allother provisions,terms, and covenants set forthinthe Agreement shallremain unchanged and shallbe infullforce and effect. [SIGNATURES ON NEXT PAGE]
SafeRock Page 2
IN WITNESS WHEREOF, the partieshave caused thisAmendment No. Two to be executed on the dates written below.

APPROVED AS TO FORM:

CITY ATTORNEY'S OFFICE
Date: ► ll cw

CITY OF NEWPORT BEACH,
a Californiamunicipal corporation
Date:

By: C,G'
AaronC.Harp i t,q .CityAttorney
By:

Lauren
Mayor
Kleiman
ATTEST:

Date:

CONSULTANT:
corporation
Date:

SafeRock, a California
Mozhgan Tabibada
Chief Executive Officer,
Officer,and Secretary
Lena Shumway
City Clerk Chief Financial
[END OF SIGNATURES]
SafeRock Page 3

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

March 10, 2026
Agenda Item No. 8
ABSTRACT:

On February 1, 2021, the City of Newport Beach entered into a professional services agreement (PSA) with Hinderliter, De Llamas & Associates (HdL) for sales and use tax consulting services. The services and reports provided by HdL have proven to be robust and valuable in supporting the City’s sales tax forecasting and revenue monitoring efforts.

Staff recommends City Council approval to extend the agreement for one additional year through December 31, 2026, to ensure continuity of services and to allow time to conduct a formal procurement process or to piggyback off another agency’s competitive procurement process.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Approve Amendment No. One to the Professional Services Agreement with Hinderliter, De Lla mas & Associates for Sales and Use Tax Consulting Service s to extend the term of the agreement to December 31, 2026, revise the schedule of billing rates, and authorize the Mayor and City Clerk to execute the amendment.

DISCUSSION:

On February 1, 2021, the City entered into a PSA with HdL to provide sales and use tax consulting services. Staff is seeking City Council approval to extend the term of the agreement through December 31, 2026, to ensure continuity of services and allow tim e to conduct a formal procurement process or to piggyback off another agency’s competitive procurement process.

Throughout the term of the agreement, HdL’s performance has been thorough, responsive and valuable in protecting and enhancing the City’s sales and use tax revenue TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason Al-Imam, Adminstrative Services Director/Treasurer - 949- 644-3126, [email protected]
PREPARED BY: Trevor Power, Accounting Manager - 949-644-3125, [email protected]
TITLE: Amendment No. One to Professional Services Agreement with Hinderliter, De Llamas & Associates for Sales and Use Tax Consulting Services
Amendment No. One to Professional Services Agreement with Hinderliter, De Llamas & Associates for Sales and Use Tax Consulting Services
March 10, 2026

base. HdL provide s detailed sales tax revenue analysis, identifi es reporting discrepancies, reviews taxpayer allocations, supports audit recovery efforts, and prepares quarterly reports to assist with revenue forecasting and budget development.

These services support the City’s ability to monitor and maximize legally allocable sales and use tax revenues.

The proposed amendment extends the agreement through December 31, 2026, ensuring uninterrupted services while staff evaluates the long-term needs and completes a competitive procurement process. The amendment also updates the consultant’s monthly fee from $850 per month ($10,200 annually), as established under the original agreement, to $900 per month ($10,800 annually) for calendar year 2026. The modest adjustment reflects updated service costs and continued comprehensive sales and use tax consulting support.

FISCAL IMPACT:

The annual cost will increase $600, from $10,200 to $10,800 for calendar year 2026. The Administrative Services Department’s operating budget can absorb this increase, and no increase to the original contract amount or appropriation is needed.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed a ccording to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENT:

Attachment A – Amendment No. One with Hinderliter, De Llamas & Associates for Sales and Use Tax Consulting Services

AMENDMENT NO. ONE TO

PROFESSIONAL SERVICES AGREEMENT

WITH HINDERLITER, DE LLAMAS & ASSOCIATES FOR

SALES AND USE TAX CONSULTING SERVICES
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT ("Amendment No. One") is made and entered intoas of this10th day of March, 2026 ("EffectiveDate"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"),and HINDERLITER, DE LLAMAS & ASSOCIATES, a Californiacorporation("Consultant"),whose address is120 South State College Boulevard, Suite 200, Brea, CA 92821, and is made with reference to the following:

RECITALS
A. On February 1, 2021, City and Consultant entered into a Professional Services Agreement (Contract No. C-8658-1) ("Agreement") to provide sales and use tax consultingservices("Project").

B. The partiesdesire to enter into thisAmendment No. One to extend the term of the Agreement to December 31, 2026, update the Administration section, update City'scontact for legalnotices,revisethe schedule of billingrates,and revisethe insurance requirements.

NOW, THEREFORE, itismutuallyagreed by and between the undersigned parties as follows:

1. TERM
Section 1 of the Agreement is amended in itsentiretyand replaced with the following:"The term of thisAgreement shallcommence on the EffectiveDate, and shall terminate on December 31, 2026, unless terminated earlieras set forth herein."

2. ADMINISTRATION
Section 6 of the Agreement is amended in itsentiretyand replaced with the following:"This Agreement will be administered by the Administrative Services Department. City'sAdministrative Services Director or designee shallbe the Project Administratorand shallhave the authorityto act for City under thisAgreement. The ProjectAdministratorshallrepresentCityinallmatters pertainingto the Services to be rendered pursuant to thisAgreement."

3. NOTICES
Section25.2 of the Agreement isamended initsentiretyand replaced with the following:"Allnotices,demands, requestsor approvalsfrom Consultant to Cityshallbe addressed to Cityat:

Hinderliter,De Llamas& Associates Page1

ATTACHMENT A
Attn: Administrative Services Director
AdministrativeServices Department
100 Civic Center Drive
Newport Beach, CA 92660"

4. COMPENSATION TO CONSULTANT
ExhibitB to the Agreement shallbe supplemented to include the Schedule of BillingRates,attachedheretoas ExhibitB and incorporatedherein by reference. Exhibit B to the Agreement and ExhibitB to Amendment No. shall collectivelybe known as "Exhibit B."

5. INSURANCE
As of the EffectiveDate of thisAmendment No. One, ExhibitC of the Agreement shallbe deletedin itsentiretyand replacedwith Exhibit C, attached hereto and incorporatedherein by reference.Any reference to ExhibitC in the Agreement and Amendment No. One shall hereafter referto "Exhibit C" attached hereto.

6. INTEGRATED CONTRACT
Except as expressly modified herein,allother provisions,terms, and covenants setforthinthe Agreement shallremain unchanged and shallbe infullforce and effect

7. RETROACTIVE APPLICATION; REVIVAL
This Amendment shall be retroactive to the date of expirationof the Agreement, such thatthe Agreement isrevived,reinstatedand restored to fullforce and effect as ifit had notexpired.Allofthe provisionsoftheAgreement shallcontinue in fullforce and effectas modified by thisAmendment.
[SIGNATURES ON NEXT PAGE]
Hinderliter,De Llamas & Associates Page 2
IN WITNESS WHEREOF, the partieshave caused thisAmendment No. One to be executed on the dates writtenbelow.

APPROVED AS TO FORM:

CITY ATTORNEY'S OFFICE
Date:o'/17/2(o
By: 1
A r n C.Harp 2.'t1•'t&QCi Attorney
ATTEST:

Date:

CITY OF NEWPORT BEACH,
a Californiamunicipalcorporation
Date:

By:

Lauren Kleiman
Mayor
CONSULTANT: HINDERLITER, DE
LLAMAS & ASSOCIATES, a California
corporation
Date:

By:

Lena Shumway
CityClerk
By:

Robert Andrew Nickerson
President and Chief Executive Officer
Date:

By:

Richard Park
Chief Financial Officer
[END OF SIGNATURES]
Attachments: ExhibitB - Schedule of BillingRates
ExhibitC - Insurance Requirements
Hinderliter,De Llamas & Associates Page 3

EXHIBIT B

SCHEDULE OF BILLING RATES
Hinderliter,De Llamas & Associates Page B-1

CITY OF NEWPORT BEACH

FIRST AMENDMENT TO

AGREEMENT FOR SALES AND USE TAX SERVICES
Section 2 of Exhibit B "Schedule of Bill Rates" in the Agreement isamended and replacedby the following:
"2. Sales,Use Tax Management Services(QuarterlyDeliveryMeetings) This serviceincludesaccesstotheCity'ssalestaxdatabasethrough our web-based software and quarterlymeetingswithone ofourprincipals.Inpreparationforeachmeeting,a principal of thefirmanalyzestheCity'sdatain detailand meets with appropriateCity officialsto review trends,point out businessesthatshould be contactedas partof the City'sbusiness retentionprogram and discussand make recommendations regarding the economic and budgetimplicationsofthequarter'sdata.Also includedisa non-confidentialnewsletterthat can be sharedwithyour counciland thepublic.The priceforthisis$900 permonth." Remaining Provisionsof ExhibitB. Except as otherwisespecificallysetforthinthisFirst Amendment, theremainingprovisionsof ExhibitB of the Agreement shallremain in fullforceand effect.

EXHIBIT C

INSURANCE REQUIREMENTS - PROFESSIONAL SERVICES

1. Provisionof Insurance. Without limitingConsultant'sindemnificationof City,and priorto commencement of Work, Consultant shallobtain,provide and maintain at itsown expense during the term of thisAgreement, policiesof insurance of the type and amounts describedbelow and ina form satisfactoryto City. Consultant agrees to provide insurance in accordance with requirements set forth here. If Consultant uses existingcoverage to comply and thatcoverage does not meet these requirements,Consultant agrees to amend, supplement or endorse the existingcoverage.

2. Acceptable Insurers.All insurance policiesshall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California,with an assigned policyholders' Rating of A- (or higher)and FinancialSize Category Class VII (or larger)in accordance with the latesteditionof Best'sKey Rating Guide, unless otherwise approved by the City'sRisk Manager.

3. Coverage Requirements.

A. Workers' Compensation Insurance. Consultant shall maintain Workers' Compensation Insurance, statutory limits,and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each accidentforbodilyinjuryby accidentand each employee forbodilyinjuryby disease in accordance with the laws of the State of California,Section 3700 of the Labor Code.

Consultant shallsubmit to City,along with the certificateof insurance, a Waiver of Subrogation endorsement infavorof City,itsCityCouncil, boards and commissions, officers,agents,volunteersand employees.

B. General LiabilityInsurance. Consultant shall maintain commercial general liabilityinsurance, and if necessary umbrella liabilityinsurance, with coverage at leastas broad as provided by Insurance Services Officeform CG 00 01, in an amount not less than two milliondollars ($2,000,000)per occurrence, fourmilliondollars($4,000,000)general aggregate. The policy shall cover liabilityarising from premises, operations, personal and advertisinginjury,and liabilityassumed under an insured contract(including the tortliabilityof another assumed ina business contract).

C. Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injuryand property damage for allactivitiesof Consultant arising out of or in connection with Work to be performed under this Agreement, includingcoverage forany owned, hired,non-owned or rented Hinderliter,De Llamas & Associates Page C-1
vehicles, in an amount not less than one million dollars ($1,000,000) combined single limiteach accident.

D. Professional Liability(Errors & Omissions) Insurance. Consultant shall maintain professional liabilityinsurance that covers the Services to be performed in connection with thisAgreement, in the minimum amount of two milliondollars ($2,000,000) per claim and four million dollars ($4,000,000)inthe aggregate. Any policyinceptiondate, continuitydate, or retroactive date must be before the Effective Date of thisAgreement and Consultantagrees to maintaincontinuouscoverage through a period no less than three years aftercompletion of the Services required by this Agreement.

4. Other Insurance Requirements. The policiesare to contain, or be endorsed to contain,the followingprovisions:

A. Waiver of Subrogation.All insurance coverage maintained or procured pursuant to thisAgreement shallbe endorsed to waive subrogation against City,itsCityCouncil,boards and commissions, officers,agents, volunteers and employees or shallspeciifcallyallow Consultant or others providing insurance evidence in compliance with these requirements to waive their rightof recovery priorto a loss.Consultant hereby waives itsown rightof recovery against City,and shallrequiresimilarwrittenexpress waivers from each of its subconsultants.

B. Additional Insured Status. All liabilitypoliciesincluding general liability, excess liability,pollutionliability,and automobile liability,ifrequired,but not includingprofessionalliability,shallprovide or be endorsed to provide that City,itsCity Council,boards and commissions, officers,agents, volunteers and employees shallbe included as insureds under such policies.

C. Primary and Non Contributory.Allliabilitycoverage shallapply on a primary basis and shallnot requirecontributionfrom any insurance or self-insurance maintained by City.

D. Notice of Cancellation.Allpoliciesshallprovide Citywith thirty(30) calendar days' notice of cancellation(except for nonpayment for which ten (10) calendar days' notice is required) or nonrenewal of coverage for each required coverage.

5. Additional Agreements Between the Parties.The parties hereby agree to the following:

A. Evidence of Insurance. Consultant shallprovide certificatesof insurance to City as evidence of the insurance coverage required herein,along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specifiedherein foreach coverage. Insurance certificates and endorsement must be approved by City'sRisk Manager prior to commencement of performance. Current certificationof insurance shallbe Hinderliter,De Llamas & Associates Page C-2
kept on filewith City at alltimes during the term of thisAgreement. The certiifcatesand endorsements foreach insurance policyshallbe signed by a person authorized by that insurerto bind coverage on itsbehalf. At least fifteen(15) days priorto the expirationof any such policy,evidence of insurance showing that such insurance coverage has been renewed or extended shall be filedwith the City. Ifsuch coverage is cancelled or reduced, Consultant shall,withinten (10)days afterreceiptof writtennotice of such cancellationor reductionof coverage, filewith the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. City reserves the rightto require complete, certifiedcopies of all required insurance policies,at any time.

B. City'sRight to Revise Requirements. City reserves the rightat any time during the term of the Agreement to change the amounts and types of insurance required by givingConsultant sixty(60) calendar days' advance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant's compensation.

C. Right to Review Subcontracts. Consultant agrees that upon request, all agreements with subcontractors or others with whom Consultant enters into contractswith on behalf of Citywillbe submitted to Cityforreview. Failure of Cityto request copies of such agreements willnot impose any liabilityon City, or its employees. Consultant shall require and verify that all subcontractors maintain insurance meeting allthe requirements stated herein, and Consultant shallensure that City is an additionalinsuredon insurancerequiredfrom subcontractors.For CGL coverage,subcontractors shallprovide coverage with a format at leastas broad as CG 20 38 04 13.

D. Enforcement of Agreement Provisions. Consultant acknowledges and agrees that any actual or alleged failureon the part of City to inform Consultant of non-compliance with any requirement imposes no additional obligationson Citynor does itwaive any rightshereunder.

E. Requirements not Limiting. Requirements of specificcoverage features or limits contained in this Section are not intended as a limitationon coverage, limitsor other requirements, or a waiver of any coverage normallyprovided by any insurance. Specificreferenceto a given coverage featureisfor purposes of clarificationonly as itpertainsto a given issue and is not intendedby any partyor insuredto be allinclusive,or to the exclusionof othercoverage,or a waiverofany type. Ifthe Consultantmaintainshigher limitsthan the minimums shown above, the City requires and shall be entitledto coverage for higher limitsmaintained by the Consultant. Any availableinsuranceproceeds inexcess of the specifiedminimum limitsof insurance and coverage shallbe availableto the City.

F. Self-insuredRetentions. Any self-insuredretentionsmust be declared to and approved by City.Cityreservesthe rightto requirethatself-insured Hinderliter,De Llamas & Associates Page C-3
retentionsbe eliminated,lowered, or replaced by a deductible. Self- insurancewillnot be consideredto comply withthese requirements unless approved by City.

G. City Remedies for Non-Compliance. IfConsultant or any subconsultant fails to provide and maintain insurance as requiredherein,then City shallhave the rightbut notthe obligation,topurchase such insurance, to terminate this Agreement, or to suspend Consultant's rightto proceed until proper evidence of insurance isprovided. Any amounts paid by Cityshall,at City's soleoption,be deducted from amounts payable to Consultantor reimbursed by Consultant upon demand.

H. Timely NoticeofClaims.ConsultantshallgiveCityprompt and timelynotice of claims made or suits institutedthat arise out of or result from Consultant's performance under this Agreement, and that involve or may involve coverage under any of the required liabilitypolicies.City assumes no obligationor liabilityby such notice,but has the right(butnot the duty)to monitor the handling of any such claim or claims ifthey are likelyto involve City.

Consultant'sInsurance. Consultant shallalso procure and maintain, at its own cost and expense, any additionalkinds of insurance,which in itsown judgment may be necessary foritsproper protectionand prosecution of the Work.

Hinderliter,De Llamas & Associates Page C-4

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

March 10, 2026
Agenda Item No. 9
ABSTRACT:

The Administrative Services Department prepares quarterly financial reports to review the status of revenues and expenditures for the City of Newport Beach’s General Fund and to monitor budgetary trends across other City funds. This report presents information on revenues, expenditures and the estimated fund balance for the second quarter of Fiscal Year 2025–26.

The second quarter financial report for FY 2025 –26 provides an analysis of the City’s financial activity from October through December 2025. Based on information available through the end of the second quarter, an unrestricted General Fund operating surplus of $12.9 million is projected for FY 2025–26.

This report was reviewed and discussed with the Finance Committee on February 12, 2026.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Receive and file this report.

DISCUSSION:

Economic Overview
Property tax, the City’s largest revenue source, is experiencing projected growth by 5.8% in FY 2025-26, driven primarily by strong property sales and rising median home prices.

Sales tax, the City’s second largest revenue source and approximately 15% of General Fund revenues, grew 5.7% in FY 2024–25 and is projected to increase 3.0% in FY 2025– 26, reflecting a resilient local economy.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:

PREPARED BY:

Jason Al-Imam, Administrative Services Director/Treasurer - 949-644- 3126, [email protected]

Jessica Nguyen, Budget Manager - 949-644-3192,
[email protected]
TITLE: Second Quarter Budget Update
Second Quarter Budget Update
March 10, 2026

Transient Occupancy Tax (TOT), the City’s third -largest revenue source, is declining in FY 2025-26 due to both continued softness in international tourism and commercial hotel activity and the absence of a one -time increase in hotel stays that occurred in the prior year. In FY 2024-25, TOT demand was temporarily elevated by regional displacement following the Los Angeles wildfires, which resulted in atypically high hotel occupancy. As this non-recurring demand has subsided and travel activity has returned t o more typical levels, TOT revenues are projected to decrease year over year.

Overall, the City’s diverse and stable revenue base, coupled with prudent fiscal management, positions it well to maintain long-term financial sustainability.

General Fund Revenues
General Fund revenues are projected to end the year by approximately 0.27%, or $0.9 million, higher than projected in the first quarter. This is primarily due to increase s in the following categories: sales tax, license and permits, property income, miscellaneous revenues, fines and penalties. Projections for key revenue categories have been updated based on current economic conditions and revenue forecasts.

The table belo w summarizes the changes to projected General Fund revenues versus the quarter one projected amounts for FY 2025–26. Details explaining the reasons for the material variances follow.

FY 2025-26 Projected General Fund Revenues

*Gross TOT revenues are projected at approximately $39.8 million, consisting of $30.4 million in hotel TOT and $9.4 million in residential TOT. Effective January 1, 2025, VNB’s share increased to 23% of hotel TOT and 0% of residential TOT. VNB is projected to receive about $7 .0 million, resulting in net TOT revenues of $32.8 million.

Second Quarter Budget Update
March 10, 2026

Property Tax – Property taxes are the City’s single largest General Fund revenue and represent approximately 50% of all General Fund revenues. As reported in the first quarter budget update, property tax revenue was projected at $163 million, reflecting an increase of $1.5 million, or 1.3%, over the prior year. Second quarter projections remain consistent with the previous forecast, and no adjust ment is recommended. Accordingly, property tax revenues are expected to remain stable for the remainder of the fiscal year, supporting the City’s overall General Fund outlook.

Sales Tax – The second -largest funding source for the General Fund is sales tax revenue, which accounts for more than 15 % of total General Fund revenues. The City’s sales tax base is primarily generated from four industry groups: autos and transportation; general consumer goods; restaurants and hotels; and the State and County pools. As reported in the first quarter, sales tax revenue was projected at $48.1 million. However, an updated projection provided by the City’s sales tax consultant reflects a 1.4%, or $0.7 million, increase over the first -quarter projection. Overall, sales tax revenue is now estimated at $48.8 million for the current fiscal year, which is $2.9 million, or 6.2%, higher than the prior year. A major contributor to this growth is the autos and transportation sector, which is projected to increase by $1.3 million, o r 12.2%, compared to the prior year.

Transient Occupancy Tax – The third largest funding source for the General Fund is TOT, making up more than 10% of General Fund revenues. TOT is projected to decline as temporary, non-recurring hotel demand related to Los Angeles wildfire displacement in FY 2024–25 subsides and international tourism and commercial hotel activity remain soft. For FY 2025–26, after distributions to Visit Newport Beach, net General Fund TOT revenues are projected at $32.8 million. This includes a downward revision of $0.9 million (2.8%) from the previous TOT forecast in the first quarter.

All Other Revenue – This category includes all other revenue sources other than the top three (property tax, sales tax and TOT). All other revenue is made up of other taxes, service fees and charges, parking revenue, licenses and permits, property income, fines and penalties, intergovernmental revenues, investment earnings, and miscellaneous revenues. Changes in projected amounts are proposed in the following categories:
 Property Income includes City-owned and managed income producing properties, long-term ground leases to concessions, restaurants, hotels and other businesses and organizations, and rental of City facilities to the public . Second quarter projections show a $0.6 million, or 5.67% increase over first quarter projections and are attributed to various properties around the city.  Licenses and Permits include fees for processing building -related permits, street closure permits, dog licenses, a nd police tow franchise fees. Budget projections indicate an increase of $0. 5 million, or 7.33%, above the first quarter projection .

This variance is primarily attributed to higher building and plumbing permits , reflecting an overall increase in residential and commercial development projects.  Miscellaneous Revenues include restricted revenue, damage to City property, bad debt recoveries, donations and contributions, non -operating revenues such as proceeds from the sale of materials and equipment, and other miscellaneous revenues. This category is projected to be $0.3 million, or 29.3% higher than first Second Quarter Budget Update
March 10, 2026

quarter projections. Contributing factors include an increase in one-time receipts.  Fines & Penalties include parking citation fines collected by the City, administrative citation fines, fines remitted to the City from the County of Orange for vehicle code violations, and false alarm penalties. Second quarter projections are expected to exceed first quarter projections by $0.1 million, or 2.42% due to higher administrative citation fine activity in the Police Department.

General Fund Expenditures
The FY 2025 -26 General Fund revised expenditure budget totals $ 351.3 million.

Spending trends in FY 2025 -26 are generally consistent with prior years and do not indicate any cause for concern. As of quarter two, additional expenditure savings of $1.7 million are projected at this time largely due to year-to-date savings from vacancies.

The following table summarizes budgeted expenditures compared to amounts based on data through the second quarter, along with expenditure savings by budget category.

Details highlighting the reasons for the material variances follow.

FY 2025-26 Projected General Fund Expenditures

Significant expenditure budget variances are as follows:
 The revised salary and benefits budget totals $196.0 million. An analysis of second-quarter salary and benefit activity indicates that $1.9 million in personnel savings accrued during the quarter, in addition to the personnel salary saving s realized in the first quarter.
 The contract services budget is expected to have $0.6 million in savings. As of the second quarter, the variance is primarily due to timing of projects. As these savings are preliminary, staff will continue to monitor activity to refine projections as additional data becomes available.
 The capital expenditures budgets are trending lower than first quarter projections due to timing of planned project expenditures.
 The utilitie s, supplies & materials, maintenance & repair, and general expense

Second Quarter Budget Update
March 10, 2026

budget show a combi ned $0.9 million in overage s due to higher -than-expected consumption related to facility usage, maintenance requirements, and increase d operational demand.

General Fund Sources, Uses, and Projected Surplus
The City continues to maintain a strong and stable financial position. Conservative budgeting practices and adherence to sound financial policies have supported consistent General Fund operating surpluses and healthy reserve levels over the past several years.

These practices position the City to sustain current service levels and strategically allocate surplus resources toward key community priorities. Unrestricted General Fund resources are currently projected to total $1 2.9 million at the end of FY 2025 –26. As in prior years, staff anticipate that additional budget savings will be realized in subsequent quarters as the fiscal year progresses.

FY 2025-26 Projected General Fund Sources, Uses, and Budget Surplus

Major Funds
Staff have evaluated the f iscal condition of other major operating funds. An analysis of the budget performance for other major operating funds indicates that a budget adjustment is not necessary and variances between budgeted and actual amounts are within reason.

FISCAL IMPACT:

The City projects an unrestricted General Fund surplus of approximately $12.9 million for FY 2025 –26, with revenues exceeding budgeted estimates by $ 0.9 million and

Second Quarter Budget Update
March 10, 2026

expenditures projected to be $ 2.6 million below the revised budget. No adjustments to the General Fund or other major operating funds are anticipated at this time.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activ ity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

March 10, 2026
Agenda Item No. 10
ABSTRACT:

The City of Newport Beach is audited annually by an independent auditing firm, presently Davis Farr LLP. The audit process takes several months, beginning after the books are closed (typically in September) and concluding several months later , once the financial statements have been prepared. On February 12, 2026, the Finance Committee met with representatives of Davis Farr LLP and reviewed the result of the audit in detail. A copy of the City’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025, is attached to this report. Also attached are the auditors’ required communications with the Finance Committee in its capacity as the City’s Audit Committee and the auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Receive and file.

DISCUSSION:

The auditors’ opinion letter can be found within the ACFR (Attachment A), which reflects an unmodified or “clean” audit opinion, meaning that the financial statements are presented fairly, in all material respects, and in conformity with generally accepted accounting principles.

The first letter, in cluded as Attachment B, is intended to communicate to the Finance Committee and the City Council matters of particular significance as required by auditing standards.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason Al-Imam, Adminstrative Services Director/Treasurer - 949- 644-3126, [email protected]
PREPARED BY: Trevor Power, Accounting Manager - 949-644-3125, [email protected]
TITLE: Financial Statement Audit Results and Related Communication for the Fiscal Year Ended June 30, 2025
Financial Statement Audit Results and Related Communication for the Fiscal Year Ended June 30, 2025
March 10, 2026

These include:

 Planned Scope and Timing of the Audit
 Compliance with All Ethics Requirements Regarding Independence  Significant Risks Identified
 Qualitative Aspects of the City’s Significant Accounting Practices  Significant Unusual Transactions
 Significant Difficulties Encountered During the Audit  Uncorrected and Corrected Misstatements
 Disagreements with Management
 Representations Requested from Management
 Management Consultations with Other Accountants
 Other Significant Matters Findings, or Issues
 Other Information Included in the Annual Comprehensive Financial Report

The auditors reported no significant unusual transactions, no significant difficulties encountered in connection with the performance of the audit, no material corrected and uncorrected misstatements, no disagreements with management, and no other audit findings or issues.

The second letter, included as Attachment C, is intended to communicate information regarding deficiencies in internal control, instances of non-compliance, and other related matters as required by auditing standards. The auditors did n ot identify any deficiencies in internal control that would need to be communicated to the Finance Committee, nor did they identify any instances of noncompliance or other matters to report.

The Single Audit, a compliance audit of federally assisted grant programs, is still ongoing.

While no audit findings are anticipated as a result of the Single Audit, staff will communicate any findings, should they occur , to the Finance Committee at a futu re meeting.

FISCAL IMPACT:

There is no fiscal impact related to this item.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the ac tivity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

Financial Statement Audit Results and Related Communication for the Fiscal Year Ended June 30, 2025
March 10, 2026

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Annual Comprehensive Financial Report for the Fiscal Year Ended June 30,2025
Attachment B – Auditors’ Required Communications with the Audit Committee Attachment C – Auditors’ Report on Internal Control Over Financial Reporting and on Compliance Matters

Attachment A
Annual Comprehensive Financial Report for the Fiscal Year Ended June 30,2025

ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
FISCAL YEARENDED
JUNE 30, 2025
&LW\RI1HZSRUW%HDFK
&DOLIRUQLD

Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
Prepared by the Administrative Services Department
Jason Al-Imam,
Administrative Services and Finance Director/Treasurer

The City of Newport Beach was incorporated September
1, 1906
The present City Seal was adopted July 22,1957

INTRODUCTORY SECTION

INTRODUCTORY SECTION
This page left blank intentionally.

CITY OF NEWPORT BEACH
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

TABLE OF CONTENTS

INTRODUCTORY SECTION
(Unaudited)

Table of Contents ....................................................................................................................... 1 Letter of Transmittal ................................................................................................................... 5 GFOA Certificate of Achievement for Excellence in Financial Reporting ................................ 19 List of City Officials .................................................................................................................. 20 Organization Chart ................................................................................................................... 21

FINANCIAL SECTION

Independent Auditor’s Report ........................................................................................... 25 Management’s Discussion and Analysis .......................................................................... 31 (Required Supplementary Information)
Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position ............................................................................................... 51 Statement of Activities ..................................................................................................... 52 Fund Financial Statements:

Governmental Funds:

Balance Sheet .............................................................................................................. 58 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position....................................................................................... 61 Statement of Revenues, Expenditures and Changes in Fund Balances ...................... 62 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .............. 64 Proprietary Funds:

Statement of Net Position............................................................................................. 68 Statement of Revenues, Expenses and Changes in Net Position ............................... 69 Statement of Cash Flows ............................................................................................. 70 Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................. 74 Statement of Changes in Fiduciary Net Position .......................................................... 75 Notes to the Financial Statements ..................................................................................... 79

Required Supplementary Information
Defined Benefit Plan For Miscellaneous Employees:

Schedule of Changes in the Net Pension Liability and Related Ratios ......................... 142 Schedule of Contributions ............................................................................................. 144 Defined Benefit Plan For Safety Employees:

Schedule of Changes in the Net Pension Liability and Related Ratios ......................... 146 1 Schedule of Contributions ............................................................................................. 148 Post-Employment Health Care Benefits (OPEB):

Schedule of Changes in the Net OPEB Liability and Related Ratios ............................ 150 Schedule of Contributions ............................................................................................. 152 Budgetary Comparison Statements:

General Fund ............................................................................................................... 154 Tide and Submerged Land – Operating Fund ............................................................... 156 Tide and Submerged Land – Harbor Capital Fund ....................................................... 157 Notes to Required Supplementary Information ................................................................ 158

Supplementary Schedules
Other Governmental Funds:

Combining Balance Sheet ............................................................................................. 166 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................................................................................................. 173 Budgetary Comparison Schedules:

State Gas Tax Fund ...................................................................................................... 180 SB1 Gas Tax RMRA Fund ............................................................................................ 181 Asset Forfeiture Fund ................................................................................................... 182 OTS DUI Grant Fund .................................................................................................... 183 Circulation and Transportation Fund ............................................................................. 184 Building Excise Tax Fund .............................................................................................. 185 Community Development Block Grant Fund ................................................................. 186 Air Quality Management District Fund .......................................................................... 187 Environmental Liability Fund ......................................................................................... 188 Supplemental Law Enforcement Services Fund ........................................................... 189 Opioid Remediation Fund ............................................................................................. 190 Contributions Fund ........................................................................................................ 191 FIIN Fund ...................................................................................................................... 192 Restricted Programs Fund ............................................................................................ 193 Measure M Fund ........................................................................................................... 194 Oceanfront Encroachment Fund ................................................................................... 195 PEG Fees Fund ............................................................................................................ 196 Park Fees Fund ............................................................................................................. 197 Internal Service Funds:

Combining Statement of Net Position ........................................................................... 202 Combining Statement of Revenues, Expenses and Changes in Net Position .............. 203 Combining Statement of Cash Flows ............................................................................ 204 Custodial Funds:

Combining Statement of Fiduciary Net Position ............................................................ 208 Combining Statement of Changes in Fiduciary Net Position......................................... 209

STATISTICAL SECTION
(Unaudited)

Financial Trends:

Net Position by Component ................................................................................................ 21 4 Changes in Net Position ...................................................................................................... 216 2 Fund Balances of Governmental Funds .............................................................................. 218 Changes in Fund Balance of Governmental Funds ............................................................ 220 Revenue
Capacity:

Assessed Value and Estimated Actual Value of Taxable Property ..................................... 224 Property Tax Rates, Direct and Overlapping Governments ................................................ 225 Principal Property Taxpayers .............................................................................................. 2 26 Property Tax Levies & Collections ...................................................................................... 227 Debt Capacity:

Ratios of Outstanding Debt by Type ................................................................................... 230 Ratios of General Bonded Debt .......................................................................................... 232 Schedule of Direct and Overlapping Debt ........................................................................... 233 Computation of Legal Debt Margin ..................................................................................... 234 Demographic and Economic Information:

Demographic and Economic Statistics ................................................................................ 238 Principal Employers ......................................................................................................... ... 239 Operating Information:

Full-Time City Employees by Function ................................................................................ 243 Operating Indicators by Function ........................................................................................ 244 Capital Asset Statistics by Function .................................................................................... 246 Water Sold by Customer Type ............................................................................................ 248 Utility Rates ............................................................................................................... .......... 250 Major Water Customers ...................................................................................................... 251 3 This page left blank intentionally.
4 Administrative Services Department

CITY OF NEWPORT BEACH
100 Civic Center Drive
Newport Beach, California 92660
949 644-3127 | 949 644-3339 FAX
newportbeachca.gov/finance
January 28, 2026
Honorable Mayor, Members of the City Council,
and Residents of the City of Newport Beach, California
The City Charter and California state law requi re that the City of Newport Beach (City) issue a complete set of financial statement s annually and that an independent firm of certified public accountants audit this report in conformance with generally accepted auditing
standards (GAAS). The Annual Comprehensive Financial Report (ACFR) of the City of Newport Beach for the year ended June 30, 2025 is hereby submitted.

The ACFR was prepared in conformance with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB). This report consists of City management’s representations concerning the finances of the City of Newport Beach. Responsibility for the accuracy and completeness of the data presented rests with the City. Management of the City is also responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protec ted from loss, thef t, or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financ ial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not abso lute, assurance that these objectives are met. The concept of reasonable assurance re cognizes that: (1) the cost of a control should not exceed the benefits likely to be der ived; and (2) the valuation of costs and benefits requires estimates and judgments by management. We believe the information presented in this report is complete and accurate in all material respects, and that it is reported in a manner designed to fairly present the financia l position and results of operations of the various activities of the City of Newport Beach.

The City of Newport Beach’s financial statements have been audited by DavisFarr LLP, a firm of licensed certified public accountant s. The goal of the audit was to provide reasonable assurance that the financial statements of the City of Newport Beach for the Fiscal Year (FY) ended June 30, 2025 are free of material misstatement. The independent audit involved examining, on a test bas is, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentatio n. The independent auditor concl uded, based on the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Newport Beach’s financial statements for the year ended June 30, 2025 are fairly presented in 5 conformity with GAAP. The independent audito r’s report is presented as the first component of the financial section of this report.

A narrative introduction, overview, and analysis accompany the basic financial statements in the form of the Management’s Discu ssion and Analysis (MD&A). The letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Newport Beach MD&A can be found immediately following the report of the independent auditors and will provide further information regarding the format and content
of this report.

PROFILE OF THE CITY
Newport Beach is a community located in the coastal center of Orange County, in the heart of Southern California, with Los Angeles County to the north and San Diego County to the south. There are currently 34 cities within the county. In terms of population, Orange County is the third largest county in California trailing Los Angeles and San Diego. It is the sixth largest county in the nation.

The general vicinity of Newport Beach and Orange County relative to the counties of Los Angeles, San Bernardino, Riverside, and San Diego is illustrated on the map below:
6 Newport Beach surrounds Newport Bay, well known for its picturesque islands and one of the greatest recreational harbors in the world, accommodating about 4,300 recreational and sports charter boats docked within its 21-square-mile harbor area. The bay area and the ten miles of ocean beach offer outstanding fishing, swimming, surfing, and aquatic sports activities. The City has a permanent population of 82,654, which typically grows to
well over 100,000 during the summer months , including 20,000 to 100,000 or more tourists daily. There are fine residential area s, modern shopping facili ties, and a quality school system. The University of California, Irvine, is located immediately adjacent to the city, and several other colleges are within a 30-mile radius.

The following map illustrates the communities within Newport Beach; the upper bay, the recreational harbor, and beachfr ont topography; and the city’s location relative to the bordering cities of Costa Mesa to the north, Irvine to the east, and Laguna Beach to the south.

Newport Beach was incorporated on September 1, 1906. The City Charter was originally adopted in 1954 but has been updated and amended over time. The City is governed by seven Council Members, and operates under a Council-Manager form of government.

Council Members are elected by district but voted on by th e population as a whole, and serve four-year staggered terms. The Mayor is selected by the City Council from among its membership and serves a one-year term. The City Council is responsible for, among 7 other things, policy-making, passing local ordinances, adopting the budget, appointing committees, and hiring the City Manager, City Attorney, and City Clerk. The City Manager is responsible for carrying out the policie s
and ordinances of the City Council, for
overseeing the day-to-day operations of the City, and for appointing heads of departments.

The City of Newport Beach is a full service city providing its residents and visitors with the following functional services: general gover nance, legal, financial, information technology, and admin
istrative management; po lice, fire, paramedi c, lifeguard, and emergency medical transport services; engineering, construction, and maintenance of public facilities, public streets, beac hes, and parks; planning, zoning, and economic development services; building inspection, pl an check, and code enforcement services; libraries and cultural and arts services; recreation and senior services; and water, wastewater, and street light utility services. The City provides water and wastewater service to most areas within t he city limits, but it does not provide gas, cable television, electricity, or other utility services. Public elementary and secondary education is provided by the Newport-Mesa Unif ied School District and the Laguna Beach Unified School District.

Component Unit: The City’s financial statements present the financial activity of the City of Newport Beach (the primar y government) and the Newpor t Beach Public Facilities Corporation (a component unit of the City). The Corporation is blended into the City’s financial statements because of its operational and financial re lationship with the City.

Even though it is a legally separate organization, City of Newport Beach elected officials are accountable for fiscal matters of the Co rporation. Additional information about the Newport Beach Public Facilities Corporation and the reporting entity in general can be found in Note (1a) of the Notes to the Financial Statements.

DEMOGRAPHICS
Reflective of a mature community, vacant land has become increasingly scarce and the city is relatively built-out. Currently at 82,654, the population has been very stable as indicated by the following chart.
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Fiscal Year
Population
8 The effective buying income and median hous ehold income are generally higher in Newport Beach than in other areas of the State and the U.S. overall. As illustrated by the table below, Newport Beach’s median hous ehold income is higher than the median household income in the County of Orange and the State of California.

The leading industries here include professional services, scientific services, healthcare, finance, insurance, legal services, and trav el and tourism. Unempl oyment in the City increased to 4.1% as of August 2025 which is consistent with the statewide and national trends. Jobs grew at a slower rate than the previous year due to a slowing economy and more workers joining or re-joining the labor force. However, the City’s unemployment rate is still lower compared to the state’s 5.8%, and the county’s 4.6%, as illustrated in the following chart.

More detailed information concerning the City’s demographics and statistics are contained within the Statistical Section of this report.

LOCAL ECONOMY

The economic outlook in Newport Beach remains strong, largely due to continued growth in property values, which has driven the median price of detached single-family homes to over $4 million. Despite elevated interest rates resulting in high borrowing costs and slower home sales, property tax revenue—the City’s largest source of revenue—remains strong and stable.

City of Newport Beach $132,670
Orange County 115,229
California 100,149
USA 81,604
Source: U.S. Census Bureau, 2024
2024 Median Household Income

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025*
Calendar Year
Historical Unemployment Rates
(Rates are not seasonally adjusted)
Newport Beach
Orange County
California
* through August 31, 2025
9 Sales tax and transient occupancy tax (TOT) revenue, the City’s se cond and third largest
revenue sources, respectively, are directly influenced by consumer behavior. A significant portion of the City’s tax revenue depends on luxury markets, such as automobile dealerships, fine dining, and luxury hotels, making it sensitive to economic headwinds like high interest rates and shifts in consumer preferences. Nonetheless, growth in sales tax and TOT revenue is projected, though at a slower pace than in previous years.

TOP THREE REVENUE SOURCES
Most General Fund revenue categories performed at or higher than their budgeted levels for the fiscal year due to more favorable economic conditions than anticipated when the budget was developed in April 2024. Actual re venues were $10.4 million or 3.4% higher than final anticipated estimate s, and $17.1 million or 5.8% higher than previous fiscal year. As discussed in more detail below, the primary positive variances were in property tax and transient occupancy taxes.

The top three individual revenue sources, Property Taxes, Sale s Taxes and Transient Occupancy Taxes, represent 74.5% of all General Fund revenues. Tax revenues in total, including business licenses, franchise fees, and other taxes represent 77.8% of all General Fund revenues, while only 22.2% is generated from other revenue sources.

Property Taxes
Unlike many cities, property taxes, not sales taxes, are the number one source of revenue for the City of Newport Beach, representing almost half (49.2%) of all General Fund revenues. Due to the limited supply of scenic coastal property and the unique access to Newport Bay, the Newport Beach community has developed into affluent residential neighborhoods and high-end comme rcial districts. Consistent and vigorous demand for coastal property has allowed the City to enj oy long-term growth trends with its number one revenue source. Property tax revenues for Fiscal Year 2024-25 came in $8.1 million 10 or 5.5% higher than the prior year due to an increase in assessed property values related to the annual inflation adjustment that is allowed under Proposition 13 and due to changes

in ownership and price appreciation.

Detached single-family residential property values increased 2.4% in 2025, as illustrated in the following table. Home sales rebounded slightly from the previous year even though interest rates increased slightly. Newport Beach’s estimated median price for a detached single-family residence is currently $4.3 million, which far exceeds the countywide estimated median value of $1.3 million. Higher assessed values are projected to continue due to strong demand, which is expected to support continued growth in future property tax revenues.

After Californians passed Proposition 13 in 1978, assessed property value is reassessed to market value only when the property changes ownership. Otherwise, the assessed value (AV) grows by no more than two percent per year. This practice creates a constant lag and buffer between assessed and market values, effectively insulating the tax base from more market volatility.

The City has experienced positive AV growth during each of the past 30 years (see chart below with the past 15 years of AV growth demonstrated). While property tax growth rates

fell sharply during the Great Recession and m any other cities experienced decreases in their AV during 2008 through 2011, the asse ssed value never declined and has risen steadily since.

Calendar Median Median %
Year Sales Price Change
2016 1,064 2,150,000$ 8.86%
2017 1,113 2,400,000$ 11.63%
2018 952 2,517,000$ 4.88%
2019 949 2,435,000$ -3.26%
2020 1,135 2,595,000$ 6.57%
2021 1,406 3,200,000$ 23.31%
2022 830 3,750,000$ 17.19%
2023 687 3,845,000$ 2.53%
2024 707 4,200,000$ 9.23%
2025* 538 4,300,000$ 2.38%
Source: HdL Coren & Cone
*Data through September 2025

CITY OF NEWPORT BEACH
Detached Single Family Residential Full Value Sales
Median Price
11 Value changes in Newport Beach show cont inued appreciation in property values in Fiscal Year 2024-25. Over the past 10 years, assessed valuation increased an average of 6.0% per year and 5.3% over a twent y-year period. Newport Beach’s assessed property values increased 5.3%, with a local assessed value of $80.0 billion for Fiscal Year 2024-25.

Sales Tax

The second largest funding source for the General Fund is sales tax revenue, making up about 14.7% of General Fund revenues. The City’s sales tax base is largely generated from three industry categories – autos and transportation, general consumer goods, and restaurants/hotels. Most of these industries are also heavily impacted by tourism.

Sales tax revenue was up 5.7% during the curr ent fiscal year, diverging from broader regional and statewide patterns in which overall sales tax revenue growth declined across much of the State of California. Consist ent with state results, sales from autos and transportation (the city’s largest source of sales tax revenue) were down in the current year as higher interest rates continued to limit the demand for new vehicles. Additionally, the continued temporary closure of a luxury automobile dealer ship for most of the year while undergoing a construction renovation project had a negative impact on local auto sales. However, a 9.1% increase in sa les from general consumer goods and a 9.4% increase in sales from restaurant/hotels, along with solid contributions from Business & industry, more than made up for the decline in autos and transportation. The positive result despite a downturn in the City’s largest source of sales tax revenue underscores the City’s resilient local economy and strong visitor based spending, distinguishing its performance from the wider regional and statewide downturn

Sales tax revenue is projected to increase by 3.0% next fiscal year, largely due to the expected rebound of automobiles and transportation sector as the aforementioned luxury automobile dealership will be open for the entire fiscal year. In addition, sales from restaurants and hotels are projected to rise by 2.1% next year as restaurants are working

5.3%

7.1%

1.0% 2.9% 5.2%

5.7% 5.9%

6.5%

6.6%

7.3% 5.3%

6.4%
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
Billions
Total Assessed Property Value Growth

4.5%4.8%

5.6%
12 hard to limit menu price increases while also promoting deals and value menus to retain

consumers.

Transient Occupancy Tax (TOT)
The City distinguishes its transient occupancy taxpayers in two broad property type categories, commercial (hotel) and residential (short-term lodging) property. Historically, TOT accrues to the City at a rate of 10% of room charges with 18% of the collection from both commercial and residential activity going to the local destination marketing organization (Visit Newport Beach) to prom ote Newport Beach as a tourist destination.

Beginning January 2025, as the result of a new agreement, Visit Newport Beach’s share of hotel TOT increased to 23% while its share of residential TOT was eliminated. The commercial category is composed of approxim ately 21 hotels and resorts and accounts for approximately 76% of TOT revenues. T he residential category is made up of approximately 1,550 vacation rentals represent ing 24% of TOT revenue. TOT revenue from short-term residential stays has more than doubled over the pas t five years, while hotel TOT revenue has increased by only 7% over the same five-year period.

In the current fiscal year, TOT revenue from short-term residential stays increased by 4%, while hotel TOT revenue increas ed by 5%. Growth was stronger in the first part of the fiscal year, but moderated in the final quarter, consistent with broader trends of leveling demand in California’s lodging market. Ongoing hotel renovations and new development projects indicated continued investment in the local lodging se ctor, which is expected to increase capacity and improve guest offerings.

LONG TERM FINANCIAL PLANNING

The City continues to be in excellent financial health due to its strong underlying tax base, disciplined fiscal decisions, and st
able governance. Conservative budgeting and sound
$-
$5
$10
$15
$20
$25
$30
$35
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Transient Occupancy Tax (TOT) Revenue
Residential (Short-term Rental) TOT Revenue Commercial (Hotel) TOT Revenue 13 financial policies have resulted in a trend of General Fund operating surpluses and strong reserve levels. The City annually completes a Long-Range Financ ial Forecast covering
the next 20 years pursuant to City Council Policy F- 3 – Budget Adoption and Administration. That forecast shows positive General Fund results in each of the next 20 years and does not indicate any long-term financ ial trends of concer n. The City’s long- term financial planning has been guided by its strong financial policies, prudent budgeting decisions, and proactive planning in such crit ical areas as facilities replacement and pensions. These policies are regularly ev aluated and updated as conditions and needs change.

Financial Policies
The City Council has adopted prudent fiscal policies concerning its investments, reserves, budget administration, revenue initiatives, com petitive contracting, facility replacement planning, and more. The budget surplus utilization policy directs the use of surplus funds resulting from unrestrict ed General Fund annual revenues exceeding total actual expenditures, encumbrances, and commitments for that year. Roughly fifty percent of the budget surplus is used to address long-term obligations such as pension liabilities, other post-employment benefits, bonded debt, lease obligations, and other long-term needs.

The remaining surplus is used to address one-time infrastructure or neighborhood capital improvements, guided by a philosophy that these expenditures improve the community’s safety, aesthetics, transportation, or quality of life. The City’s debt policy establishes criteria for the issuance of debt and assures that the amount of any debt is affordable and cost effective. The City’s debt policy was recognized by the California Debt and Investment Advisory Commission as one of only 14 counties and cities in California whose policies have 20 or more debt managem ent best practice elements. The City’s debt and other financial policies can be found on the City’s website in the City Council section under City Government at:
www.newportbeachca.gov/policies
Annual Budget
The annual budget serves as the foundation for the City of Newport Beach’s financial planning and control and allows
the City Council to prioritize City expenditures so that they are aligned with core community values. Per current policy, appropriations for operating expenditures are balanced in relati on to current revenue sources and do not rely on one-time revenue sources or reserv es. When significant uncertainty exists concerning revenue volatility or threatening/pending obligations, the City Council and City Manager reserve the right to impose any s pecial fiscal control measures, including personnel hiring freezes, and other spending cont rols, as was the case in FY 2019-20 and in the development of the FY 2020-21 budget. As a result of early retirement plans, attrition, outsourcing, and lay-offs implemented in the year s following the onset of the Great Recession, the full-time work forc e was reduced by approx imately 12% between FY 2008-09 and FY 2013-14, reaching a low in FY 2016-17 as depicted in the chart below.

In the years since, thoughtful additions to the City’s workforce have been implemented with a continued focus on fiscal discipline and maintaining balanced budgets. The recent 14 increase in positions has mostly been the result of converting part time positions to full time positions to better support needs of departments.

The City has traditionally taken a conserva tive approach to forecasting revenues, often assuming only modest growth. This fiscal c onservatism has created a stable financi al
base. As a result, even in a downturn, the Ci ty of Newport Beach is able to maintain its services at a high level, while reducing expenses to accommodate reduced revenues.

The City’s fiscal discipline has allowed it to prepare balanced budgets and to save, both during prosperous and difficult economic periods. As the economy continues to improve, these trends are likely to continue.

The City Council may authorize the use of contingency reserves during emergency situations as set forth by the Council Reserve Policy. Current policy requires that the contingency reserve equal 25 percent of the General Fund annual “Operating Budget.” Credit rating agencies consider a high level of available “fund balance” to be a credit strength. The City maintains an elite credit profile holding the top-tier AAA credit rating from major agencies like FitchRatings, Moody’s and S&P Global. The rating agencies regularly note key aspects such as the City’s robust economy, strong financial reserves, conservative fiscal management, and high wealth levels create a stable outlook affirming the ability to meet financial obligations. The City has also employed an aggressive strategy to paydown its unfunded pension liability. The City has committed to a pension paydown plan that requires $45 million in annual contributions towards its unfunded pension liability, which is $15 million more than the amount required to be paid, as further described in the Pension section below. This paydown strategy is anticipated to result in eliminating the City’s pension liability in 2033.

Facilities Financial Plan (FFP) Commitment & Major Construction Initiatives The City’s FFP is a comprehensive master facilities replacement schedule that projects the timing of construction of facility projec ts; projects the schedule of any planned debt 15 issuance; includes all relevant revenue sources and expenditures on a yearly, project-by- project basis; and determines the long-term “l evel funding” annual budget commitment that is required to support the program. The FFP was the winner of the prestigious “Helen Putnam Award – Internal Administration” category from the League of California Cities in 2008.

The City continued its financial commitment to the Facilities Financial Planning Reserve (FFPR) in FY 2024-25 by allocating resources to construct a new library and fire station, construct permanent supportive housing, to finalize construction of a pedestrian bridge and parking lot, and to explore construction of a new aquatic center.

Overall, the FFPR balance increased by $3.1 million from the prior fiscal year.

Pensions
As of the actuarial valuation date of June 30, 2024, the City had an Unfunded Accrued Liability (UAL) of $312.5 million. The City has taken a number of actions in recent years to mitigate the impact of rising pension costs including:

 Established lower benefit formulas for new hires.
 Eliminated the Employer Paid Member Contribution (EPMC).  Through negotiated cost s haring, saw employees contribute 52.3% of the Normal Cost of the plan, or $11.9 million in Fiscal Year 2024-25.  Adopted a fixed and shorter amortizati on period for the unfunded liability.  Made Additional Discret ionary Payments (ADPs)
 Contributed no less than Actuarial Dete rmined Contribution (ADC) each and every year.

Beginning Balance 7/1/24 20,435,754$
Sources
Donations 1,068,190
Transfer In from General Fund 12,104,412
Investment Income 857,449
Net increase in fair value of investments 186,073
Total Sources 14,216,124
Uses
Fire Station/Library Replacement (6,800,000)
Permanent Supportive Housing (3,000,000)
Jr. Guard Capital Project (5,295)
Aquatic Center Project (500,000)
Superior Ave. Bridge and Parking Lot Project (805,874)
Total Uses (11,111,169)
Ending Balance 6/30/25 23,540,709$
Facilities Financial Plannin g Reserve Fund
16 
Analyzed the schedule of amortization bases annually in an effort to avoid negative amortization.
 Amortized all gains/losses no longer than a 20-year closed period.  Avoided asset smoothing or “rate phase-in” schedules if possible. Otherwise, the City’s goal is to not exceed 5 years for any one smoothing cycle.  Established a General Fund Surplus Utilization Policy F-5 to set aside one-half of any annual budget surplus to fund debts such as the pension liability.  Maintained a contingency reserve to protect against economic recessions and to avoid negative impacts of asset smoothing and rate phased-in schedules.

Local governments with pensions have a total pension liability, which is the obligation to pay deferred pension benefits in the future. When the total pension liability is greater than the pension plan’s assets there is a net pension liability, also known as unfunded pension liability. As required by GASB 68, the City reports the net pension liability in the government-wide financial statement s, as well as in the propr ietary fund statements, in the ACFR – see Note (11) of Notes to the Financial Statements.

The City implemented GASB 75 in fiscal year 2017-18, which requires local governments offering other post-employment health care benefits (“OPEB”) to report net OPEB liability in the government-wide financial statements, as well as in the proprietary fund statements, in the ACFR – see Note (12) in the Notes to the Financial Statements. When the total OPEB liability is greater than the OPEB plan’s assets there is a net OPEB liability, also known as unfunded OPEB liability.

As with past practice, the City will continue to fund its pension and OPEB obligations at an amount equal to or greater than the minimum employer contribution rate. The City has not and will never intentionally short-fund its pension and OPEB obligations. Annually the City evaluates the cost and benefits of paying down the unfunded pension and OPEB liabilities on a faster schedule. Currently, the City Council has co mmitted to a fixed $45 million per year contribution toward the unfunded pension liability, which is approximately $15 million more than is required by CalPERS. Fiscal year 2024-25 represented six years in a row the City Council appropriated additional funding towards an accelerated payment of the unfunded liability from year-end budget surplus funds. The $45 million paydown strategy is anticipated to result in eliminating the City’s pension liability in 2033. Beginning in fiscal year 2024-25, the OPEB liability is fully funded.

AWARDS AND ACKNOWLEDGMENTS
The City has prepared an Annual Comprehensive Financial Report for the past 32 years.

The City has received awards for excellence in financial reporting in each of those years.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Newport Beach for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024. In order to be awarded a Certif icate of Achievement, a government unit must publish an easily readable and effici ently organized Annual Comprehensive 17 Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believ e our current Annual Comprehensive Financial Report conti nues to conform to the Certificate of Achievement program requirem ents and we are submitting it to GFOA to determine its eligibility for another certificate.

Acknowledgments: Preparation
of this report was accomplished through the efficient and dedicated
services of everyone in the City’s Accounting Division. In addition, the Administrative Services Department staff would like to thank the City Manager, the Mayor, and the City Council for their interest in and support of planning and conducting the
financial operations of the City in a responsible and progressive manner. We would also like to thank our auditors, DavisFarr LLP, for their time and assistance in the preparation of the report.

Seimone Jurjis
City Manager
Jason Al-Imam
Administrative Services and
Finance Director/Treasurer
18 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Newport Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
19 Newport Beach City Officials
Sara J. Weber
Councilmember
District 7
Lauren Kleiman
Mayor
District 6
Michelle Barto
Councilmember
District 2
Erik Weigand
Councilmember
District 3
Noah Blom
Mayor Pro Tem
District 5
Robyn Grant
Councilmember
District 4
City Councilmembers
City Executive Staff
Seimone Jurjis
City Manager
Aaron Harp
City Attorney
Lena Shumway
City Clerk
Tara Finnigan .......................................................................................................................... Assistant City Manager Jason Al-Imam.....................................................................Administrative Services and Finance Director/Treasurer Jeff Boyles .................................................................................................................................................... Fire Chief Paul Blank ............................................................................................................................................. Harbormaster Melissa Hartson.................................................................................................................... Library Services Director Dave Miner ............................................................................................................................................... Police Chief Dave Webb ............................................................................................................................... Public Works Director Sean Levin ....................................................................................................... Recreation & Senior Services Director Mark Vukojevic ................................................................................................................................ . Utilities Director Joe Stapleton
Councilmember
District 1
Vacant.........................................................................................................................Municipal Operations Director 20 Board of Library
Trustees
Building & Fire
Board of Appeals
City Arts
Commission
Civil Service Board
Harbor Commission
Parks, Beaches &
Recreation Commission
Planning
Commission

ELECTORATE
CITY

MANAGER

MAYOR &

COUNCIL
CITY
CLERK
CITY

ATTORNEY
Community
Development
Administrative
Services
Fire
Municipal
Operations
Harbor
Library
Services
Public
Works
Utilities
Police
Recreation &
Senior Services
City
Committees
21 This page left blank intentionally.
22 23

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24 INDEPENDENT AUDIT
OR’S REPORT

The Honorable Mayor
and
Members of the City Council
City of Newport Beach
Newport Beach, California

Report on the Audit of the Financial Statements

Opinions

We have audited 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 (the “City”), as of and for the year June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter

As described further in
Notes 1 and 7 to the financial statements, during the year ended June 30, 2025, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. Our opinions are not modified with respect to this matter.

25 The Honorable Mayor a
nd
Members of the City Council
City of Newport Beach
Newport Beach, California

Responsibilities of Management for
the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

26 The Honorable Mayor a
nd
Members of the City Council
City of Newport Beach
Newport Beach, California

We are requir
ed to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedules for the General Fund and each major special revenue fund, Schedules of Changes in the Net Pension Liability and Related Ratios, Schedules of Contributions, Schedule of Changes in the Net OPEB Liability and Related Ratios and Schedule of OPEB Contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are presented for the purpose of additional analysis and are not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS . In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the Introductory Section and S tatistical Section but does not include the financial statements and our auditor’s report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial 27 The Honorable Mayor a
nd
Members of the City Council
City of Newport Beach
Newport Beach, California

statements, or the
other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Go
vernment Auditing Standards , we have also issued our report dated January 28, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Irvine, California
January 28, 2026

28 MANAGEMENT’S DISCUSSION AND ANALYSIS
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30 MANAGEMENT’S DISCUSSION AND ANALYSIS

This section of the City of Newport Beach’s Annual Comprehensive Financial Report (ACFR) presents management’s discussion and analysis of the City’s financial performance during the fiscal year that ended on June 30, 2025. This analysis should be read in conjunction with the Transmittal Letter at the front of this report and the accompanying Basic Financial Statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

The financial section of the Annual Comprehensive Financial Report contains the following information: Independent Auditors’ Report, Management’s Discussion and Analysis (this section), the Basic Financial Statements, the Required Supplementary Information, and the Supplementary Information section, an optional section that presents combining and budgetary schedules for individual non-major funds. The Basic Financial Statements are comprised of three components:
1) Government-wide Financial Statements , 2) Fund Financial Statements, and 3) Notes to the Financial Statements. Management’s Discussion and Analysis is intended to be an introduction to the Basic Financial Statements.

BASIC FINANCIAL STATEMENTS

Government-wide Financial Statements – The Government-wide Financial Statements use the economic resources measurement focus and accrual basis of accounting, which is similar to the accounting standard used by private sector companies. The Government-wide Financial Statements are intended to provide a “Big Picture” view of the City. With the economic resources measurement focus and accrual basis of accounti ng, changes in net position are recognized as soon as the event occurs regardless of the timing of related cash flows.

The Statement of Net Position includes all the City’s assets (including non-spendable assets like streets, roads, and land rights), deferred outflows of resources, liabilities (including long-term liabilities that may be paid over twenty years), and deferred inflows of resources. All the current year’s revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid.

The Government-wide Financial Statements report the City’s net position and how net position has changed. Net position – the difference between the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources – is one way to measure the City’s financial health. Over time, increases or decreases in th e City’s net position are an indicator of whether its financial health is improving or deteriorating, respectively. To assess the overall health of the City, one should also consider additional non-financial factors such as changes in the City’s property tax base and the condition of its facilities and other major infrastructure.

The Government-wide Financial Statements of the City are divided into two categories:

Governmental Activities – This category depicts the extent to which programs are self- supporting, and the net amount provided by property taxes and other general revenues.

Most of the City’s basic services are included in this category such as public safety, public works, community development, community services, and general administration. Taxes and other general revenues finance most of these activities. 31 Business-type Activities – The City accounts for its Water and Wastewater uti lities as business enterprises. The City charges fees to customers to recover the cost of providing Water and Wastewater services.

Fund Financial Statements – A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements suc h as State and Federal law or bond covenants. Other funds are utilized simply to control and manage resources intended for particular purposes. The Fund Financial Statements provide more detailed information about the City’s most significant funds (major funds) but not the City as a whole.

Fund Financial Statements have a short-term focus measuring inflows of current , spendable assets. The resulting net difference between current financial assets and deferred outflows of resources, and current financial liabilities and deferred inflows of resources, otherwise known as fund balance (or net working capital in the private sector) is a measure of the City’s ability to finance activities in the near term.

The City utilizes three broad categories of funds:

Governmental Funds – Unlike Government-wide Financial Statements, Governmental Fund Financial Statements utilize the current financial resources measurement focus and thus concentrate on near-term inflows and outflows of spendable resources, as well as on the balances of spendable resources available at the end of the fiscal year. Consequently, the Governmental Fund Financial Statements provide a detailed short-term view that helps a reader determine whether there are more or fewer financial resources that can be spent in the near future to finance City programs. Also included in the Governmental Funds are Permanent Funds. These funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support City programs.

Proprietary Funds – Business-like services that receive significant financial support from user fees and charges are generally reported in Proprietary Funds (Enterprise Funds and Internal Service Funds). Like the Government-wide Financial Statements, these funds provide both long and short-term financial information utilizing the economic resources measurement focus. The City’s Enterprise Funds (Water and Wastewater Funds) provide goods or services mostly to non-government users and are the individual funds represented in the combined presentation of Business-type Activities in the Government- wide Financial Statements. The individual fund presentation provides more detailed information about each business segment, its operating statements, and statements of cash flow. The City also uses Internal Service Funds that are utilized to report and allocate the cost of certain centrally managed and operated activities ( e.g., fleet and other equipment maintenance, risk management, retiree insurance, telecommunications systems, information technology services, etc.). Because the Internal Service Funds primarily serve government users, they are reported with Governmental Activities , rather than the Business-type Activities, in the Government-wide Financial Statements.

Fiduciary Funds – The City utilizes Fiduciary Funds to account for assets held by the City in a trustee capacity, or as an agent for other governmental entities, private organizations, or individuals. All the City’s fiduciary activities are reported in a separate statement of fiduciary net position, and a statement of changes in fiduciary net position. We exclude 32 these activities from the City’s Government-wide Financial Statements because the City cannot use these assets to finance its operations.

Notes to the Financial Statements – The financial statements also include the Notes to the Financial Statements that provide important narrative details about the information contained in the financial statements. Information contained in the Notes to the Financial Statements is critical to a reader’s full understanding of the Government-wide and Fund Financial Statements.

Required Supplementary Information – In addition to the Basic Financial Statements, we have included a Required Supplementary Information section, which includes Budgetary Comparison Schedules for the General Fund and two other major funds, t he Schedule of Changes in Net Pension Liability and Related Ratios, the Schedule of Changes in Net Post-Employment Health Care Benefits (OPEB) L iability and Related Ratios , and the related Schedules of Contributions for the Pension and OPEB plans.

Supplementary Information – In addition to the required elements of the Basic Financial Statements, we have also included a Supplementary Information section, which includes budgetary and combining schedules that provide additional details about the City’s Other Governmental Funds, Internal Service Funds, and Fiduciary Funds.

ANALYSIS OF GOVERNMENT-WIDE FINANCIAL STATEMENTS

The Government-wide Financial Statements provide long-term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole.

Net Position Discussion
As shown in Figure 1, the City’s combined net position for the fiscal year ended June 30, 2025 was $2.6 billion, increasing $60.5 million or 2.3% over the prior year. Net position can serve as an important indicator of whether the City’s overall financial condition is improving or deteriorating over time.

Current and other assets increased $29.7 million. This increase is primarily due to a $22.4 million increase in cash and investments primarily related to investment performance, a $8.3 million increase in lease receivables primarily related to signing new lease agreements, and a $5.1 million increase in prepaid items primarily related to the purchase of four fire engines, offset by a $7.3 million decrease in restricted cash and investments primarily related to undergrounding utilities. Capital assets increased $11.5 million, of which $ 9.8 million is related to additions to infrastructure and work in progress, and $1.6 million is due to additions to land structures, and equipment.

Current liabilities decreased $17.3 million primarily due to decreases in accounts payable and unearned revenue offset by an increase in accrued payroll.

Long-term liabilities decreased $56.1 million. The decrease is primarily due to decreases in the City’s net pension liability and net OPEB liability as investment returns in both plans finished better than expected. See Note (11 ) and Note (12) of the Notes to the Financial Statements for more information.

33 Figure 1
Net Position
June 30
(in thousands)

The largest portion of the City’s net position, at $2.4 billion of net position, reflects the net investment in capital assets (e.g., land, right of way, street trees, buildings, infrastructure, equipment, and intangibles) less accumulated depreciation, accumulated amortization, and any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to residents. Therefore, they do not represent a financial resource to the City and consequently are not readily available for funding current obligations.

Restricted net position totaled $131.0 million of net position, an increase of $7.6 million from the prior fiscal year, primarily due to an increase of restricted net position related to community services offset by a decrease of restricted net position related to public works. Community services’ increase is mainly from tidelands property related revenues not being spent during the fiscal year as resources are being accumulated for future large scale capital improvement projects related to the harbor. Public works’ decrease is mainly from the spending of limited obligation improvement bond proceeds for undergrounding utilities.

As of June 30, 2025, unrestricted net position was $80.9 million, an increase of $32.7 million from the prior fiscal year, primarily due to the receipt of unrestricted revenues such as property taxes and sales taxes that were not spent or restricted by the end of the fiscal year and the decline of net pension and net OPEB liabilities. As pension and OPEB obligations declined, fewer resources were needed to support long-term benefit costs, strengthening the City’s overall financial position and increasing unrestricted net position.

Gov ernmental Activ ities Business-Type Activ ities Total 2024 2025 2024 2025 2024 2025
Current and other assets 699,910$ 725,870$ 30,548$ 34,266$ 730,458$ 760,136$ Capital assets 2,391,089 2,399,825 136,639 139,424 2,527,728 2,539,249 Total assets 3,090,999 3,125,695 167,187 173,690 3,258,186 3,299,385 Deferred outflows of resources 145,027 99,604 5,341 3,197 150,368 102,801 Current liabilities 58,840 40,164 4,986 6,356 63,826 46,520 Long-term liabilities 482,299 428,268 14,928 12,822 497,227 441,090 Total liabilities 541,139 468,432 19,914 19,178 561,053 487,610 Deferred inflows of resources 268,341 274,905 79 115 268,420 275,020 Net position
Net investment in capital assets 2,275,100 2,292,550 132,332 135,138 2,407,432 2,427,688 Restricted 123,445 131,011 - - 123,445 131,011 Unrestricted 28,001 58,401 20,203 22,456 48,204 80,857 Total net position 2,426,546$ 2,481,962$ 152,535$ 157,594$ 2,579,081$ 2,639,556$ 34 GOVERNMENTAL ACTIVITIES

Governmental activities are generally financed through taxes, intergovernmental revenues, and other non-exchange revenues. The Statement of Activities is intended to illustrate how the cost of governmental activities is financed and determines the annual change in net position.

Figure 2
Changes in Net Position
For the Years Ended June 30
(in thousands)

Revenues Associated with Governmental Activities Discussion

Figure 2 illustrates in detail how the $364.4 million in Governmental Activities revenue was derived. Figure 3 summarizes this revenue by major source. As shown on Figures 2 and 3, $80.3 million, or 22.0%, of the revenues were recovered from those who directly benefited from the programs as a charge for service. Another $28.0 million, or 7.7%, of the revenues were generated by contributions and grants received from governmental organizations, developers, and property owners for both capital and operating activities. The remaining $256.1 million, or 70.3%, represented general revenues of the City including taxes, intergovernmental revenues, and other miscellaneous revenues.

Governmental Activities Business-Type Activities
2024 2025 2024 2025 2024 2025
Revenues:

Program revenues:

Charges for services 81,473 $ 80,249 $ 39,117 $ 46,445 $ 120,590 $ 126,694 $ Operating grants and contributions 34,498 22,766 115 26 34,613 22,792 Capital grants and contributions 35,647 5,260 - - 35,647 5,260 Total program revenues 151,618 108,275 39,232 46,471 190,850 154,746 General revenues:

Taxes:

Property taxes 146,137 154,183 - - 146,137 154,183 Sales tax 43,445 45,934 - - 43,445 45,934 Transient occupancy taxes 31,737 33,174 - - 31,737 33,174 Other taxes 10,252 10,386 - - 10,252 10,386 Investment related income 9,368 9,093 1,462 1,432 10,830 10,525 Other 2,855 3,333 - - 2,855 3,333 Total general revenues 243,794 256,103 1,462 1,432 245,256 257,535 Total revenues 395,412 364,378 40,694 47,903 436,106 412,281 Expenses:

General government 28,392 20,366 - - 28,392 20,366 Public safety 151,626 143,921 - - 151,626 143,921 Public works 88,360 87,889 - - 88,360 87,889 Community development 16,814 17,105 - - 16,814 17,105 Community services 33,034 33,510 - - 33,034 33,510 Interest 6,215 6,171 - - 6,215 6,171 Water - - 37,322 36,562 37,322 36,562 Wastewater - - 6,959 6,282 6,959 6,282 Total expenses 324,441 308,962 44,281 42,844 368,722 351,806 Increases in net position 70,971 55,416 (3,587) 5,059 67,384 60,475 Net position at beginning of year 2,355,575 2,426,546 157,717 152,535 2,513,292 2,579,081 Restatement - - (1,595) 1 - (1,595) 1 - Net position at beginning of year, as restated 2,355,575 2,426,546 156,122 152,535 2,511,697 2,579,081 Net position at end of year 2,426,546$ 2,481,962$ 152,535$ 157,594$ 2,579,081$ 2,639,556$ 1 Prior year net position w as restated due to unbilled receivables adjustment in Fiscal Year 2022-23.

Total
35 Figure 3
Governmental Activities Revenue Sources
For the Year Ended June 30, 2025
As illustrated in Figure 2, program revenues related to Governmental Activities decreased $43.3 million from the prior fiscal year. This decrease wa s primarily attributable to the prior fiscal year containing several large one-time capital and operating grants and contributions related to the issuance of limited obligations improvement bonds for two assessment districts, and the recognition of private
contributions for
the construction of a Junior Lifeguard building and
library lecture hall.

The City’s general revenues related to Governme
ntal Activitie
s increased about $12.3 million from
the prior year primarily d
ue to increases in property taxes, sales taxes, transient occupancy taxes, other taxes, and other general revenues, offset by decreases in investment related income.

Revenue increases acr
oss various categories illustrate that Newport Beach’s underlying local economy continues to remain strong.

Property tax is the largest revenue source for the City and coll ections finished the year $8.0 million
higher than the previous fiscal year.

This increase was mostly due to an increase in secured
taxes as a robust demand for coastal property continued driving property value s higher and due
to an increase in residual tax revenue from the dissolution of a former redevelopment agency.

At $45.9 million, sales taxes represent the second largest individual rev enue source for the City.

Sales taxes increased $2.5 million from the previous fiscal year. This increase in sales tax revenue was due to strong consumer spending in key industry grou ps, including restaurants and hotels,
general consumer goods, and the sales tax pools offset a modest decline in sales fr om autos and
transportation.

Transient occupancy taxes (TOT), the City’s third largest re venue source, finished the year at
$33.2 million, which is a
n increase of $1.4 million from the previous fiscal year. Both Residential TOT and Hotel TOT revenues experienced modest in creases in the 4% to 5% range indicating robust demand for Newport Beach as a premier tourist destination, which is why hoteliers continue to invest in upgrades and renovations
.
22%
8%
67%
3%
Charges for Services
Contributions and Grants
Taxes
Other
36 Investment income, comprised of both interest income and unrealized gains/losses, decreased about $305,000 from the prior fiscal year. Between the two fiscal years there were less unrealized gains for the current fiscal year. Over time the portfolio’s percentage of bonds with maturities of six months or less increased, which decreased the portfolio’s potential for unrealized gains.

Expenses Associated wit
h Governmental Activities Discussion
The City is a full-service city providing residents and visitors with the following functional services:

General G
overnment is comprised of six departments (City Council, City Clerk, City Manager, City Attorney, Human Resources, and Finance) providing general governance, information technology services, executive management, legal services, records management, risk management, finance, and accounting.

Public S
afety is comprised of two departments (Police and Fire) providing general law enforcement, fire suppression and prevention services, paramedic and medical transport services, disaster preparedness, and ocean lifeguard services.

Public Wor
ks is comprised of one department (Public Works) providing engineering, construction and maintenance of public streets, highways, buildings, beaches, parks, facilities and related infrastructure; as well as traffic engineering and street lighting.

Community
Development is comprised of one department (Community Development) that provides planning, building, and zoning services, economic development services, and building plan check and code enforcement services.

Community
Services is comprised of three departments (Library Services , Recreation & Senior Services, and Harbor) providing library services, cultural and arts programs, recreation services, senior social and transportation services, and harbor programs and services.

Business
Enterprise Operations are overseen by the Utilities Department providing water and wastewater services. These are considered business-type activities and are discussed further in the Business-Type Activities section.

Figure 2 i
llustrates in detail how the $309.0 million of Governmental Activities expense was derived. The decrease of $15.5 million from the prior year is mostly due to a decrease in the government-wide adjustment for internal service fund activity as there was a net gain in total in the internal service funds mostly due to a decrease in workers’ compensation and general liability expenses. A decrease in the government-wide adjustment related to pension expense also contributed to the decrease in Governmental Activities expenses. 37 Figure 4 below summarizes the Governmental Activities expenses shared across functions.

Figure 4
Governmental Activities Functional Expenses
For the Year Ended June 30, 2025

Figures 5 and 6 illustrate the net cost of each service. The net cost represents the amount that governmental activities are subsidized by taxes and other general revenues of the City.

Figure 5
Governmental Activities
For the Years Ended June 30
(in thousands)

47%
28%
11%
7%
5% 2%
Public Safety
Public Works
Community Services
General Government
Community Development
Interest
Total Cost Net (Cost) Total Cost Net (Cost)
of Service of Service of Service of Service
General government 28,392$ (10,212)$ 20,366$ (10,522)$ Public safety 151,626 (115,049) 143,921 (108,994) Public works 88,360 (22,387) 87,889 (58,605) Community development 16,814 (5,338) 17,105 (3,717) Community services 33,034 (13,622) 33,510 (12,677) Interest 6,215 (6,215) 6,171 (6,171) 324,441$ (172,823)$ 308,962$ (200,686)$
2024 2025
38 Figure 6
Program Expenses and Revenues – Governmental Activities For the Year Ended June 30, 2025
(in millions)

BUSINESS-TYPE ACTIVITIES

As noted earlier, the City combines the Water Enterprise Fund and Wastewater Enterprise Fund into Business-type Activities for the presentation of the Government-wide Financial Statements.

Business-type activities are mainly funded by chargi ng fees to customers to recover the cost of providing services.

Revenues Associated with Business-Type Activities Discussion

As displayed in Figure 2, total revenues related to Business-type activities totaled $47.9 million.

Program revenues totaled $46.5 million and were supplemented by about $1.4 million of general revenues related to investment income. As shown in Figure 7 on the following page, Water activities represent about $40.5 million (87.1%) of program revenues, while Wastewater activities represent about $6.0 million (12.9%) of program revenues.

$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
General
Government
Public Safety Public Works Community
Development
Community
Services
Interest
Total Expenses Program Revenues
39 Figure 7
Program Expenses and Revenue – Business-type Activities For the Year Ended June 30, 2025
(in millions)

Expenses Associated with Business-Type Activities Discussion

Current-year expenses for Business-type Activities totaled $42.8 million, a decrease of about $1.5 million over prior year as shown in Figure 2. This is attributable to decreases in maintenance.

Major Business-type expenses in the current fiscal year included the following:

Water
Of the $36.5 million in water related expenses, $14.2 million (39.0%) is for the purchase of water, $6.1 million (16.6%) covers employee related costs, $8.2 million (22.6%) is for maintenance, supplies, and depreciation of the water system, $3.3 million (8.9%) is for professional services, $2.3 million (6.3%) is for utility payments, and the remaining $2.4 million (6.6%) is collectively attributable to other miscellaneous expenses.

Wastewater
Of the $6.3 million in wastewater related expenses, $3.0 million (46.8%) is for maintenance, supplies, and depreciation of the wastewater system, $1.9 million (30.6%) is for employee related costs, and the remaining approximately $1.4 million (22.6%) is attributable to professional services, utility payments and other miscellaneous expenses.

Figure 7 summarizes Business-type expenses separately for Water and Wastewater activities.

$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
Water Wastewater
Total Expenses Program Revenues
40 FINANCIAL ANALYSIS OF THE CITY’S FUNDS

As noted earlier, the City uses fund accounting to highlight available financial resources and to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds

Utilizing the current financial resources measurement focus, the City’s Governmental Funds provide information on near-term inflows, outflows, and balances of spendable resources. This information is useful in assessing the City’s financing requirements and may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Fund Balance – As shown in Figure 8, the City’s Governmental Funds reported combined fund balances of $322.1 million, an increase of $27.0 million from the prior fiscal year. The increase is net result of increases in fund balances in almost every major fund below, including the General Fund, the Tide and Submerged Land – Operating Fund, the Tide and Submerged Land – Harbor Capital Fund, the Facilities Financial Planning Reserve Fund, and other permanent funds in the aggregate, offset by decreases in the Debt Service Fund, other special revenue funds, and other capital projects funds in the aggregate. The General Fund represented about $108.1 million or

33.6% of the combined fund balances of the Governmental Funds.

Figure 8
Governmental Funds Fund Balance
June 30
(in thousands)

The following describes the classification of fund balance as of June 30, 2025. Additional information on the City’s fund balance can be found in Note (15) of the Notes to the Financial Statements.

Nonspendable Fund Balance – The City has $10.7 million in fund balance classified as nonspendable to indicate that it cannot be readily converted to cash. Of the $10.7 million nonspendable fund balance, $1.5 million is for prepaid items, $183,978 is for inventories, $4.4 million is for long-term loan receivables, and $4.6 million is for permanent endowments.

Restricted Fund Balance – The City has $120.7 million in fund balance classified as restricted to indicate that it has externally imposed rest rictions on how the money may be spent. Of the $120.7 million restricted fund balance, $10.5 million is restricted in the Tide and Submerged Land – Operating Fund, of which $8.6 million is restricted for capital projects and maintenance and repairs, and $1.9 million is restricted for the Upper Newport Bay restoration; $57.5 million is 2024 2025 Change
General Fund 96,441$ 108,148$ 11,707$
Tide and Submerged Land - Operating 8,548 11,809 3,261 Tide and Submerged Land - Harbor Capital 43,107 57,503 14,396 Facilities Financial Planning Reserve 20,436 23,541 3,105 Debt Service Fund 2,323 2,024 (299) Non-major special revenue 32,274 31,996 (278) Non-major capital projects 85,087 79,891 (5,196) Non-major permanent 6,846 7,185 339 295,062$ 322,097$ 27,035$
41 restricted in the Tide and Submerged Land – Harbor Capital Fund for capital projects related to the harbor ; and $2.0 million is restricted for debt service. Of the remaining $50.7 million in restricted fund balance, $32.0 million is restricted for various special revenue funds, $15.9 million is restricted for the Assessment District Fund , $306,531 is restricted for the Fire Station Fund, and $2.6 million of fund balance is restricted for permanent funds.

Comm
itted Fund Balance – The City has $92.3 million in fund balance classified as committed to indicate that the City Council has committed how the money will be spent. Of the $92.3 million committed fund balance; $3.8 million is committed in the General Fund mostly for drones, contract services, and maintenance and repairs ; $1.3 million is committed in the Tide and Submerged Land – Operating Fund for oil and gas related uses ; $23.5 million is committed in the Facilities Financial Planning Reserve Fund; $9.6 million is committed in the Fire Station Fund; $526,902 is committed in the Civic Center and Park Fund; $13.4 million is committed in the Parks and Community Center Fund; $170,642 is committed in Balboa Village Parking Management District Fund; $3.0 million is committed to the Facilities Maintenance Fund; $8.8 million is committed in the Neighborhood Enhancement Fund; $56,438 is committed in the Junior Lifeguards Fund; $18.5 million is committed in the Unrestricted Capital Improvements Fund; $7.2 million is committed to the Miscellaneous FFP Projects Fund; and $723,235 is committed to the Police Facility Fund; and $1.7 million is committed to the Park Maintenance Fund.

Assigned
Fund Balance – The City does not have any fund balance classified as assigned.

Assigned fund balance is fund balance which is not restricted or committed and is classified as assigned to indicate the City Manager’s intent to be used for specific purposes.

Unassigned Fund B
alance – The remaining $98.4 million in fund balance is classified as unassigned to indicate that it is the residual balance not otherwise restricted, committed , or assigned.

Majo
r Governmental Funds results for the year included the following:
• General
Fund revenues finished $17.1 million or 5.8% higher than the prior year mostly due to a combined $12.0 million net increase in the City’s top three revenue sources – property taxes, sales taxes and transient occupancy taxes – with a $8.0 million increase in property taxes as the City’s assessed valuation continued to increase due primarily to the appreciation of property values and due to an increase in residual tax revenue from the dissolution of a former redevelopment agency ; supplemented with a $2.5 million increase in sales taxes due to strong consumer spending in key industry groups, including restaurants and hotels, general consumer goods, and the sales tax pools ; and a $1. 5 million increase in transient occupancy taxes due to continued strong hotel occupancy rates. Additionally, charges for services increased $1.8 million compared to the previous year mostly due to an increase in building related plan checking fees as there were more projects; an increase in recreation fees as there was more participation in recreation classes; and, an increase in paramedic services fees, which tend to fluctuate from year to year. General Fund expenditures finished $6.6 million or 2.5% higher than the prior fiscal year mostly due to the expected increase in salaries and benefits related to routine step increases, cost of living adjustments, new positions, and increased pension costs. Though revenues exceeded expenditures by about $44.4 million, there were substantial transfer activity in the General Fund with transfers in totaling $20.3 million and transfers out totaling $53.0 million, mostly for funding capital improvement projects. In total, fund balance in the General Fund increased $11.7 million and ended the year at $108.1 million. 42  Fund balance for the Tide and Submerged Land – Operating Fund increased $3.3 million and ended the current year with $11.8 million in fund balance. The increase was mostly due to an increase in property income related to lease interest income and parking revenues.
 Fund balance for the Tide and Submerged Land – Harbor Capital Fund increased $14.4 million ending at $57.5 million. This increase was similar to the previous year’s increase and was largely due to additional investment earnings and capital improvement projects not commencing in the current year. This fund is accumulating resources to be used for major capital expenditures in the future.
 Fund balance for the Facilities Financial Planning Reserve Fund increased $3.1 million to end the current year at $23.5 million in fund balance. This was mainly due to a transfer in of the Fiscal Year 2023-24 General Fund year-end unrestricted surplus to be used to cash fund future construction projects and the receipt of a contribution related to a development agreement.
 Fund balance for the Debt Service Fund decreased $298,722 ending at $2.0 million. The decrease was due to administrative charges and debt service related to servicing certificates of participation.

Proprietary Funds
The City’s Proprietary Funds (Enterprise and Internal Service Funds) presented in the Fund Financial Statements section generally provide the same type of information in the Government- wide Financial Statements, but also include information for individual funds.

Enterprise Fund results for the year included the following:

 Net position in the Water Fund increased $2.9 million, mostly due to increases in water sales revenue related to a water rate increase. During November 2023 the City Council adopted a resolution to increase water rates each January 1 st during calendar years 2024
through 2028.

 Net position in the Wastewater Fund decreased $401,834. The decrease in net position was mainly due to increases in expenses for system maintenance and professional services. During November 2023 the City Council adopted a resolution to increase sewer rates each January 1
st during calendar years 2024 through 2028. Increasing sewer rates should improve the Wastewater Fund’s net position in future years.

Major Internal Service Fund activity in the current fiscal year included the following:

 Total net position in the Internal Service Funds increased $11.2 million in the current fiscal year. This was mostly due to a decrease in expenses related to the City’s self-insured general liability and workers’ compensation programs.

43 GENERAL FUND BUDGETARY HIGHLIGHTS
Changes to Original Budget
Final budgeted revenues for the General Fund increased $7.8 million from the original budget during the
year ended June 30, 2025. Factors contributing to this fluctuation are highlighted as follows:
 Property taxes revenue increased $3.3 million due to increases in assessed values related to changes in ownership and new construction.
 Final budgeted intergovernmental revenue increased $3.1 million primarily due to the City's portion of the ½ cent sales tax revenue paid to the County for public safety, state mandate reimbursements, reimbursement for stri ke teams sent to assist with fires, and revenue sharing with the County of Orange under the Waste Disposal Agreement (WDA).  Miscellaneous revenues increased from the adopted budget by $766,040.  Charges for services increased from the adopted budget by $512,700. This adjustment is related to increased revenue received for recreation classes and special events.  Donations were adjusted upward by $185,780 related to donations to the Library Services Department, Police Department, Fire Department, and the Recreation & Senior Services Department.

Final budgeted expenditures for the General Fund increased $12.7 million from the original budget during the year ended June 30, 2025. The significant factors contributing to the increase are as follows:
 The addition of $5.9 million to the benefits and salary budget is associated with pre-funding the typical year-end contribution to CalPERS for paying down the unfunded pension liability from the Fiscal Year 2023-24 structural surplus and approved memorandum of understandings (MOUs) for the following bargaining units: League, Newport Beach Police Association (NBPA), Newport Beach Fire Asso ciation (NBFA), Association of Newport Beach Ocean Lifeguards (ANBOL).
 Budgeted carryovers from Fiscal Year 2023-24 totaling $6.8 million were added to the adopted budget.

Variance with Final Budget
Actual General Fund revenues came in at $10.4 million above final bu dgeted revenues for the
year ended June 30, 2025. Significant factors contributing to this favorable variance are summarized as follows:
 Property tax revenues came in $1.6 million higher than the final budget, largely due to supplemental taxes.
 Investment earning revenues were $3 million higher than final budgeted revenues due to interest income from bonds and elevated interest rates. 44 • Property income ended the year $1.9 million higher mainly due to overages in Beacon Bay, Balboa Yacht Basin, as well as parking revenue.

• Charges for services came in $1.2 million higher due primarily to receipts for paramedic service fees, plan check fees, as well as revenue received from renewals of short-term lodging permits.

• Other taxes ended the year $798,179 higher than final budgeted revenues primarily due to business license taxes, utility franchise fees, and solid waste franchise fees.

Actual General Fund expenditures of $269.3 million were less than final budgetary estimates of $284.7 million. The $15.5 million favorable variance was due largely in part to routine savings in salaries and benefits from vacancies as well as contract services. Salary and benefit savings totaled $6.8 million and are spread across multiple departments, with savings in the larger departments (such as the Police Department, the Public Works Department, and the Fire Department) totaling $3.7 million.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

The City’s capital assets for G overnmental and Business -type Activities as of June 30, 202 5 amount to $2.5 billion, net of accumulated depreciation/amortization. This is comprised of a broad range of tangible capital assets including land, buildings, machinery and equipment, park facilities, road improvements, storm drains, piers, oil wells, sound walls, an 800 MHz radio communications system, parking pay stations and meters, and bridges; and intangible capital assets including the rights to use land and rights of way, structures, equipment and subscriptions. Total capital assets increased $11.5 million over the prior fiscal year.

Figure 9
Capital Assets
June 30
(net of depreciation/amortization, in thousands)

2024 2025 2024 2025 2024 2025
Land 1,922,330$ 1,923,977$ 2,219$ 2,219$ 1,924,549$ 1,926,196$ Intangible right to use
land and rights of way - - 3,755 3,702 3,755 3,702 Structures 199,676 201,794 363 347 200,039 202,141 Intangible right to use structures 14,045 12,823 - - 14,045 12,823 Equipment 19,050 18,670 126 113 19,176 18,783 Intangible right to use equipment 162 78 - - 162 78 Intangible right to use subscriptions 2,145 1,722 - 117 2,145 1,839 Infrastructure 211,479 225,774 125,767 125,697 337,246 351,471 Work in progress 22,200 14,988 4,408 7,229 26,608 22,217 Totals 2,391,087$ 2,399,826$ 136,638$ 139,424$ 2,527,725$ 2,539,250$ Activities Activities
Governmental Business-Type
Total
45 Major capital asset events during the current fiscal year included the following:

• Capital asset additions totaled $56.5 million in both the Governmental and Business-type Activities in the current year. Of the $56.5 million, $9.1 million is related to structure additions of a trash interceptor system in Newport Bay and upgrading park playground equipment and a separate park parking lot; $ 26.8 million represents additions of infrastructure assets mostly related to the road system and water system ; $4.0 million is related to equipment and intangible right to use equipment, and intangible right to use subscriptions additions; The remaining $16.6 million is comprised of additions of n on- depreciable/non-amortizable assets such as work in progress of $14.9 million, and land and rights of way of $1.7 million.
• Of the $46.8 million of additions in governmental assets in the current year, additions in infrastructure contributed $22.8 million, which was mostly due to upgrades in the road system. The remaining $24.0 million added in the current year as governmental assets is comprised of $9.1 million of structure additions and $1.7 million of land additions, both mostly related to the addition of a trash interceptor system and associated landside improvements, upgrading a park’s playground equipment, and upgrading a parking lot; $9.4 million of work in progress, mostly related to construction of a new lecture hall at the central library, upgrades to the road system, and construction of a new fire station/library; $3.8 million of equipment additions, mostly related to vehicle purchases and parking lot pay station purchases.
• The $9.7 million of business-type asset additions in the current year is comprised of $ 4.0 million in water system infrastructure additions , mostly related to updating pump stations and a water well ; $ 5.5 million of work in progress additions related to water system improvements, including replacing a major water main and updating another pump station and water well The remaining amount of additions was for intangible rights to use a subscription related to water meters.

Additional information on the City’s capital assets can be found in Note ( 6) of the Notes to the Financial Statements.

Long-term Debt

Figure 10
Outstanding Debt
June 30
(in thousands)

2024 2025 2024 2025 2024 2025
Certificates of participation 93,525$ 89,290$ -$ -$ 93,525$ 89,290$ Bond premium 865 723 - - 865 723 Totals 94,390$ 90,013$ -$ -$ 94,390$ 90,013$ Activities Activities
Governmental Business-Type Total
46 The City’s total debt decreased $4.4 million during the current fiscal year. The decrease is the result of expected debt service payments. Additional information on the City’s long-term debt obligation can be found in Note (7) of the Notes to the Financial Statements.

FACTORS AFFECTING NEXT YEAR’S BUDGET

Economy

The City continues to benefit from a strong and stable local economy. Assessed property values are increasing and remain a significant driver of revenue growth. Property tax revenues grew 5.5 percent in Fiscal Year 2024–25 and are projected to grow an additional 5.8 percent in Fiscal Year 2025–26 due to continued strength in property sales and rising median home prices. Sales tax revenues grew 5.7 percent in Fiscal Year 2024–25 and are projected to increase by 3.0 percent in Fiscal Year 2025–26, signaling continued resilience in the local retail and tourism sectors.

Transient Occupancy Tax revenue continues to grow, although at a slower pace than the post- pandemic recovery period as international travel and hotel demand moderate.

The City’s diverse revenue base, stable property values, and sound fiscal management support long-term financial sustainability. Newport Beach’s revenue structure continues to position the City to withstand broader economic fluctuations and maintain essential services and capital investments.

Local Revenue Trends

Property tax revenue remains the City’s largest General Fund revenue source and represents approximately half of total General Fund revenues. Strong assessed valuation growth is the primary driver of projected increases. Supplemental property tax revenues were also higher than originally forecasted as final assessed valuation figures exceeded expectations.

Sales tax revenue is the second largest source of General Fund revenue and represents more than 15 percent of the General Fund. Growth is driven largely by activity in autos and transportation, general consumer goods, and restaurants and hotels. Although growth is moderating from the previous year, sales tax revenues are performing above budgeted levels and reflect continued strength in consumer spending and tourism.

Transient Occupancy Tax revenue is the third largest source of General Fund revenue. Following several years of post-pandemic strength, growth has moderated due to softening hotel demand and a reduction in international visitors. Despite this moderation, TOT revenues remain a significant and stable contributor to the City’s revenue structure.

Collectively, General Fund revenues are projected to exceed the budgeted estimates for Fiscal Year 2025–26 due to stronger than anticipated economic conditions. Based on updated revenue projections and expenditure savings identified during the first quarter budget update, a $10.3 million General Fund surplus is currently projected for the year.

Discretionary Appropriations

The annual budget serves as the foundation for financial planning and fiscal control and allows the City Council to prioritize resources consistent with community values. The Fiscal Year 2025– 26 budget reflects continued financial strength supported by growing revenues, healthy reserves, and a conservative debt profile.
47 When the Fiscal Year 2025-26 budget was adopted, the City projected a structural General Fund surplus of $12.2 million. Approximately $10 million of the surplus was committed to fund the first year of three-year labor contracts with the City’s bargaining groups. This reduced the st ructural surplus to approximately $2 million at the time of adoption. Strong revenue performance and expenditure savings since adoption have increased the projected surplus to $10.3 million based on the first quarter budget update.

The City
continues to maintain a balanced approach to fiscal management by addressing long- term obligations, sustaining essential public services, and investing in infrastructure to support high service levels and quality of life. The City continues to execute an aggressive pension paydown strategy and to maintain sufficient reserves to address unforeseen economic or fiscal challenges.

Overal
l, the City’s debt burden remains low and affordable. Newport Beach benefits from a mature and diverse tax base, high residential and commercial property values, and a robust tourism and retail economy. The City’s strong financial profile is an important factor considered by credit rating agencies when evaluating the creditworthiness of municipal debt. Fitch Ratings reaffirmed the City’s AAA credit rating in 2025, and Moody’s reaffirmed its AAA rating in 2024. Standard and Poor’s continues to assign the City its highest long-term credit rating of AAA.

The City
’s financial management policies emphasize prudent budgeting practices, conservative revenue forecasting, and expenditure controls. Over the past decade, the City has employed strategies such as modifying pension cost -sharing arrangements, contracting for services when appropriate, and freezing vacant positions during periods of economic uncertainty. These practices have supported consistent operating surpluses over the past ten years. Surpluses have been used for one- time purposes, including paying down liabilities and investing in capital and neighborhood improvements.

CONTAC
TING THE CITY’S FINANCIAL MANAGEMENT
This fi
nancial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City’s Adm inistrative Services Department, 100 Civic Center Drive, Newport Beach, CA 92660, (949) 644-3123. The City’s Budgets, Annual Comprehensive Financial Reports, as well as other City financial information can be found on the City’s website at: www.newportbeachca.gov/financialinfo.
48 49

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50 Governmental Business-type
Activities Activities Total
Assets:

Cash and investments (note 2) 381,192,951$
29,631,436$ 410,824,387$
Receivables:

Accounts (net of allowance) 13,473,448 6,554,867 20,028,315 Interest 1,812,524 145,252 1,957,776 Intergovernmental receivables 14,363,166 451 14,363,617 Lease receivables (note 3) 276,374,011 - 276,374,011 Public-private partnership receivable (note 17) 629,813 - 629,813 Restricted cash and investments with fiscal agent (note 2) 27,782,192 - 27,782,192 Internal balances 2,065,843 (2,065,843) - Investment in joint ventures (note 13) 339,272 - 339,272 Inventory 686,808 - 686,808 Prepaid items 7,150,342 - 7,150,342 Capital assets (note 6):

Non-depreciable/non-amortizable 1,938,964,243 9,447,970 1,948,412,213 Depreciable/amortizable 790,941,765 212,913,481 1,003,855,246 Accumulated depreciation/amortization (330,081,448)
(82,937,363) (413,018,811)
Total assets 3,125
,694,930 173,690,251 3,299,385,181
Deferred Outflows of Resources:

Deferred amount fro
m pension plans (note 11) 91,256,632 2,738,713 93,995,345 Deferred amount from OPEB (note 12) 8,347,130 458,803 8,805,933 Total deferre
d outflows of resources 99,603,762 3,197,516 102,801,278 Liabilities:

Accounts payable 19,990,178
6,006,188 25,996,366
Accrued payroll 7,752,498 320,013 8,072,511 Accrued interest payable 3,109,569 - 3,109,569 Deposits payable 3,658,843 29,784 3,688,627 Unearned revenue 5,652,744 - 5,652,744 Noncurrent liabilities:

Due within one year:

Lease liability (note 7) 1,273,326 44,608 1,317,934 Subscription liability (note 7) 243,771 36,593 280,364 Other (note 7) 20,966,944 - 20,966,944 Due in more than one year:

Net pension liability (note 11) 267,824,528 8,702,213 276,526,741 Net OPEB liability (note 12) 5,237,348 277,324 5,514,672 Lease liability (note 7) 11,793,605 3,687,682 15,481,287 Subscription liability (note 7) 1,299,952 73,790 1,373,742 Other (note 7) 119,628,344 -
119,628,344
Total liabilities 468,431,650
19,178,195 487,609,845
Deferred Inflows of Resources:

Deferred amount fro
m pension plans (note 11) 1,005,922 7,364 1,013,286 Deferred amount from OPEB (note 12) 1,964,658 108,049 2,072,707 Deferred amount from leases (note 3) 271,248,281 - 271,248,281 Deferred amount from public-private partnerships (note 17) 686,001 - 686,001
Total deferre
d inflows of resources 274,904,862 115,413 275,020,275 Net Position:

Net investment in capital assets 2,292
,549,844 135,138,380 2,427,688,224
Restricted for:

Public safety 759,073 - 759,073 Public works 44,563,786 - 44,563,786 Community services 75,003,024 - 75,003,024 Community development 1,475,624 - 1,475,624 Debt service 2,024,393 - 2,024,393 Permanent funds:

Nonexpendable 4,629,781 - 4,629,781 Expendable 2,555,481 - 2,555,481 Unrestricted 58,401,174
22,455,779 80,856,953
Total net position 2,481,962,180$ 157,594,159$ 2,639,556,339$

CITY OF NEWPORT BEACH
Statement of Net Position
June 30, 2025
See accompanying notes to basic finan
cial statements
51 CITY OF NEWPORT BEACH
Statement of Activities
For the Year Ended June 30, 2025
Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenues
Functions/Programs
Primary government:

Governmental activities:

General governmen
t 20,365,624$ 8,911,980$ 931,503$ -$ 9,843,483$
Public safety 143,920,632 30,839,794 4,086,656 - 34,926,450
Public works 87,889,339 8,890,609 15,990,133 4,403,307 29,284,049 Commun
ity development 17,104,756 12,723,330 616,730 48,181 13,388,241 Commun
ity services 33,510,164 18,883,733 1,140,761 808,629 20,833,123 Interest on lon
g-term debt 6,171,195 -
-
-
-

Total governm
ental activities 308,961,710 80,249,446 22,765,783 5,260,117 108,275,346 Business-type activities:

Water 36,561,497 40,463,909 15,456 - 40,479,365
Wastewater 6,282,179 5,980,769 10,728 - 5,991,497
Total business-t
ype activities 42,843,676 46,444,678 26,184 - 46,470,862
Total primary gov
ernment 351,805,386$ 126,694,124$ 22,791,967$ 5,260,117$ 154,746,208$ Taxes:

Property tax
Sales tax
Transient occupan
cy tax
Business license tax
Franchise tax
Other taxes
Investment income
Net increase in fair v
alue of investments
Other
Total general revenues
Change in net position
Net position, beginn
ing of year
Net position, end of year
Program Revenues
See accompanying notes to basic financial statem
ents
52 Governmental Business-type
Activities Activities Total
(10,522,141)$ -$
(10,522,141)$
(108,994,182) -
(108,994,182)
(58,605,290) -
(58,605,290)
(3,716,515) -
(3,716,515)
(12,677,041) -
(12,677,041)
(6,171,195) -
(6,171,195)
(200,686,364) -
(200,686,364)
-
3,917,868 3,917,868
-
(290,682) (290,682)
-
3,627,186 3,627,186
(200,686,364) 3,627,186 (197,059,178) 154,182,579 -
154,182,579
45,934,260 -
45,934,260
33,174,268 -
33,174,268
5,086,253 -
5,086,253
5,052,778 -
5,052,778
246,787
-
246,787
6,747,045 1,119,040 7,866,085
2,346,015 313,212 2,659,227 3,333,021 -
3,333,021
256,103,006 1,432,252 257,535,258
55,416,642 5,059,438 60,476,080
2,426,545,538 152,534,721 2,579,080,259 2,481,962,180$ 157,594,159$ 2,639,556,339$
Net (Expense) Revenue and
Changes in Net Position
Primary Government
See accompanying notes to basic financial statem
ents
53 This page left blank intentionally.
54 FUND FINANCIAL STATEMENTS
55 This page left blank intentionally.
56 GOVERNMENTAL FUNDS

Major Funds

The General Fund is used to account for fiscal resources that are dedicated to governmental operations of the City, and not required to be accounted for in another fund.

The Tide and Submerged Land – Operating Fund is a Special Revenue Fund used to account for revenues related to the operation of the City’s tidelands, including beaches and marinas, and the related expenditures. Revenue from tideland operations includes, but is not limited to, rents from moorings, piers, and leases, as well as income from parking lots, meters, and the sale of oil.

The Tide and Submerged Land – Harbor Capital Fund is a Special Revenue Fund used to account for incremental increases in revenue from certain property lease, pier, and mooring rentals that exceed Council designated base year revenue amounts, as well as other designated revenues and the related expenditures for capital projects, maintenance, and servicing of loan advances from the General Fund.

The Facilities Financial Planning Reserve Fund is used to account for the receipt and expenditure of funds for the replacement of facilities. In prior years, this fund was called the Facilities Replacement Fund.

The Debt Service Fund is used to account for debt service transactions related to the Certificates of Participation issued to finance the construction of the Civic Center Complex and the construction of Fire Station No. 2.

Other Governmental Funds
Other governmental funds are those governmental funds that do not meet the criteria of a major fund. For reporting purposes in this section, they are combined as Other Governmental Funds.

57 Tide and Tide and
Submerged Submerged
General Land - Operating Land - Harbor Capital
Assets
Cash and investments (n
ote 2) 96,363,732$ 9,167,630$ 62,161,008$ Receivables:

Accounts (net o
f allowance) 6,115,707 2,165,513 -

Interest 520,192 66,363 254,095

Intergovernmental receivab
les 11,162,624 -
-

Lease receivables (no
te 3) 79,878,799 193,226,32
8 -

Public-private p
artnership receivable (note 17) - 629,813 -

Restricted cash an
d investments with fiscal agent (note 2) - - -

Due from other fun
ds (note 4) 8,718,563 -
-

Advance to othe
r funds (note 4) 4,426,659 -
-

Prepaid items 1,371,697 63,529 -

Inventory 183,978 -
-

Total assets 208,741,95
1$ 205,319,17
6$ 62,415,103$
Liabilities, Deferred Inflows of Res
ources
and Fund Balances
Liabilities:

Accounts pay
able 9,586,771$ 1,269,942$ 485,298$

Accrued pay
roll 7,162,759 75,542 -

Deposits paya
ble 3,345,409 313,434 -

Unearned reven
ue 2,654,437 980,433 -

Due to other f
unds (note 4) - -
-

Advance from o
ther funds (note 4) - -
4,426,659
Total liabilities 22,749,376 2,639,351 4,911,957 Deferred Inflows of
Resources:

Unavailable reven
ue - -
-

Deferred amoun
t from leases (note 3) 77,845,065 190,240,71 3 -

Deferred amoun
t from public-private partnerships (note 17) - 630,001 -

Total defe
rred inflows of resources 77,845,065 190,870,71 4 -

Fund balances:

Nonspendab
le:

Prepaid items 1,371,697 63,529 -

Inventorie
s 183,978 -
-

Long-term loan
receivable 4,426,659 -
-

Permanen
t endowment - -
-

Restricted:

Upper Newport Ba
y restoration - 1,871,911 -

Other (note 15
) - 8,614,781 57,503,146 Committed:

Capital re-appropri
ations 374,822 -
-

Oil and gas - 1,258,890 -

Other (note 15
) 3,411,044 -
-

Unassigned 98,379,310 -
-

Total fun
d balances 108,147,51
0 11,809,111 57,503,146
Total liabilities
, deferred inflows of
resources an
d fund balances 208,741,95
1$ 205,319,17
6$ 62,415,103$
Special Revenue Funds

CITY OF NEWPORT BEACH
Governmental Funds
Balance Shee
t
June 30, 2025