HomeMy WebLinkAbout14 - 2017-2018 Budget Adoption - Memo from Finance Committee ChairJune 13, 2017
Agenda Item No. 14
CITY OF NEWPORT BEACH
TO: Members of the Newport Beach City Council
FROM: Council Member Diane B. Dixon, Chair of the Finance Committee
DATE: Friday, June 9, 2017
RE: The Finance Committee and the Proposed FY 2017-18 City Budget
I am pleased to report that, after six open and public meetings where the Finance
Committee reviewed in depth the City Manager's Proposed FY 2017-18 City Budget (and
CIP), the Committee on June 1, 2017 voted 5-0 (Mayor Muldoon and Mr. Collopy having
excused absences) to recommend that the City Council adopt the proposed budget.
Included in that recommendation was:
The Committee's opinion that the funds allocated for the projects in the proposed
Capital Improvement Program (CIP) appeared appropriate in terms of overall City
expenditures — comments were not made on individual projects within the CIP;
A belief that the "additional discretionary payment" (of about $9M) for unfunded
pension liability (UL) be allocated to Cal -PERS over a 12 -month period starting in July
2017 under the concept of "dollar cost averaging;" and
A statement that the Committee intends to review the use of a Section 115 Pension
Trust involving future funds that could also be used to address the unfunded pension
liability. The Committee intends to review this with the City's consultant(s) in Fall 2017.
The Committee members individually expressed their comments and questions about
various expenditures, revenue assumptions, pension payment plans, and efficiency
strategies. They engaged in what I believe was a rigorous debate about many aspects
of the Budget and the City's operations.
Staff was present at all times to offer perspectives and answers. Additionally, the City's
pension consultant (Mr. John Bartel) was present either in person or by telephone to
comment and advise on the City's unfunded pension liability and alternatives to address
it.
City Hall 100 Civic Center Drive Post Office Box 1768 Newport Beach, California 92659-1768
Memo to the City Council
June 9, 2017
Page 2
I continue to be pleased with the manner in which the Finance Committee operates, with
robust dialogue and a willingness to address virtually any issue. I believe that the
Committee, comprised of three Council members and four citizen members, is serving
the community and Council well.
We were particularly pleased during these budget sessions with the new Long -Range
Financial Planning Model (as developed by staff) and the new Socrata Budget portal,
which will allow our residents to better understand and comment upon the City's budget.
I extend my appreciation to the Committee for its work on the 2017-18 Proposed Budget,
and also my thanks to City staff for staff's active participation in our deliberations. I believe
that the community can take great pride in this fiscally responsible, forward-looking
budget and the Committee's overall work effort. I commend the excellent leadership of
the City Council and the solid expertise of the City's staff in bringing this budget forward
for your review and adoption.
cc: Members of the Newport Beach Finance Committee