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.