HomeMy WebLinkAbout00 - Special Joint Meeting - PowerPointMay 14, 2019
Special Joint Meeting
Budget Emphasizes:
• Providing High Quality
Municipal Services that
Residents Expect
• Providing a Safe and Secure
Neighborhood
• Keeping Newport Beach
Looking Great
• Maintaining a Prosperous,
Fiscally Sustainable, and
Economically Viable City
z
A4 if
�t i
• Budget is balanced
• Budget assumes strong property tax growth rate while most other revenue slowing
• Proposed Expenditures remain relatively flat
• Adhered to Council guidance regarding the use of FY 2017-18 budget surplus
• Continued aggressive payment schedule of unfunded pension liability
• Continued focus on enhancing the community's quality of life and safety
• Continued funding of infrastructure master plans and neighborhood enhancement projects
• General Plan Update Funded
• Funded Airport Growth Control Efforts
• Robust Internal and External Audit Programs
• The collective components are budgeted conservatively
• Emphasizes long-term fiscal sustainability
3
■
Source and Use Projections
Personnel Budget Development
Departmental CIP Preparation
Departmental Budget Preparation
City Manager Review
Finance Committee Review
City Council Review
Budget Adoption
Budget Implementation
Open Budget
City of Newport Beach
Newport Beach
City Website f V
Open Budget
Welcome to the City of Newport Beach's (City) Open Budget portal.
We developed this site to provide a guided view through complex financial information and it is part of our
commitment to improving government transparency. We encourage you to explore our budget to view how
public funds are allocated. There are charts, graphs and tables, which are highly interactive to:help you
understand the City's budget.
Read More www.newportbeachca.o_v/openbudget
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RELATED CONTENT
Open & Transparent Budget Documents
Government
Interfund Transfers
Fi i=ro.
4
The City's Open&Transparent Government The City's budget is presented in two Interfund tra nsfers represe nt the a mounts
website is designed to make information volumes: The Budget Detail includes transferred from one fund to finance the
accessible to the public in a central location revenue estimates and line -by-line services for the recipient fund and are not
and serve as a launching pad for future proposed operations and maintenance considered to be part of the City's operating
transparency efforts- expenditures, and the Capital Improvement budget- We've created a breakdown of the
Program (CIP) describes the planned capital Fiscal Year 2429 proposed budget interfund
projects and infrastructure improvements. transfers.
M
Navigating Open Budget
Video tutorial about how to navigate
through Open Budget.
I
FY 2017-18
REVISED
EXPENDITURES
FY 2018-19
REVISED
EXPENDITURES
FY 2019-20
PROPOSED
EXPENDITURES
$ VAR
% VAR
OPERATING BUDGET
294,576,388
298,959,576
303,752,688
4,793,112
1.6%
CIP PROJECTS
New Appropriations
41,069,538
52,325,792
44,491,100
(7,834,692)
-15.0%
Rebudget/Carry Forward
35,194,809
30,757,550
51,724,110
20,966,560
68.2%
76,264,347
83,083,342
96,215,210
13,131,868
15.8%
TOTAL BUDGET
$ 370,840,735
$ 382,042,918
$ 399,967,898
$ 17,924,980
4.7%
I
General Fund
Internal Service Funds
Enterprise Funds
Other Funds
Proposed
Budget
FY 2019-20
218,689,329
39,890,356 Internal
30,720,964 Service
14,452,039 Funds
13%
Total $ 303,752,688
Other Funds
5%
Enterprise
g Fund
72%
SOURCES
UNRESTRICTED FUND BALANCE
FY 2016-17 Surplus
FY 2017-18 Surplus
Use of FY 2017-18 Surplus
FY 2018-19 Surplus
REVENUES
Less: Restricted Revenues
Use of Restricted Revenues and Encumbrances
Transfers -In
TOTAL SOURCES
USES
Operating Expenditures
Transfers Out
Contingency Reserve Increase(Decrease)
TOTAL USES
UNAPPROPRIATED RESOURCES
9
FY 2018-19
FY 2019-20
Revised
Proposed
Budget
Budget
$ VAR
% VAR
$
12,090,743
$
-
$
(12,090,743)
-100.0%
-
113,020,333
13,020,333
NA
1,428,885
(1,428,885)
(2,857,770)
-200.0%
-
2,462,692
2,462,692
NA
221,413,058
229,392,161
7,979,103
3.6%
(775,735)
(672,000)
103,735
-13.4%
1,878,744
20,000
(1,858,744)
-98.9%
8,140,595
9,475,236
1,334,641
16.4%
$
244,176,290
$
252,269,537
$
8,093,247
3.3%
$
211,853,367
$
218,689,329
$
6,835,962
3.2%
26,337,885
31,680,252
5,342,367
20.3%
3,522,346
-
(3,522,346)
-100.0%
$
241,713,598
$
250,369,581
$
8,655,983
3.6%
$
2,462,692
-22.9%
$
1,899,956
$
(562,736)
9
* $1,428,885 of FY 2017-18 Surplus was used in FY 2018-19 SCE 20A Credits
10
Near Term
Long -Term
Improvements
Obligations
TOTAL
Harbor & Beaches Master Plan
$ 2,000,000
$ 2,000,000
Neighborhood Enhancement Projects
$ 6,500,000
6,500,000
Facilities Financial Plan
1,520,333
1,520,333
Workers' Compensation
3,000,000
3,000,000
$ 6,500,000
$ 6,520,333
$ 13,020,333
49.9%
50.1%
* $1,428,885 of FY 2017-18 Surplus was used in FY 2018-19 SCE 20A Credits
10
■Property Taxes $113.6 19%
■ Sales Tax $35.7
5%
Transient Occupancy Tax $24.5
11%
Other Taxes $11.6
■ All Other Sources $44.0 16%
FY 2018-19
Revised
Property Taxes
106,723,629
Sales Taxes
3619971648
Transient Occupancy Tax
2313961103
Other Taxes
11,285,764
Licenses and Permits
5,021,451
Intergovernmental
2,334,802
Charges for Services
20,150,738
Fines & Penalties
319421617
Use of Money & Property
1015661868
Other Revenues
993,438
Total General Fund
$ 221,413,058
FY 2019-20
Proposed
$ VAR % VAR
113,601,474
61877,845
6.4%
3516971090
(1,300,558)
-3.5%
2414581131
110621028
4.5%
11,597,886
3121122
2.8%
4,918,412
(103,039)
-2.1%
1,842,767
(492,035)
-21.1%
21,506,631
1,355,893
6.7%
314751428
(467,189)
-11.8%
11, 693,470
1,126, 602
10.7%
600,871
(392,567)
-39.5% ,2
$ 229,392,160
$ 7,979,102
3.6%
■ Salaries & Benefits
$155,5601228
■ Maintenance & Operation
$62,316,955
Capital Outlay $812,146
<1%
13
■ Salaries & Benefits
$155,560,228
Maintenance & Operation
$62,316,955
Transfers $31,680,252
Capital Outlay $812,146
0.32%
14
General Government
City Council
City Clerk
City Manager
Human Resources
City Attorney
Finance
Total General Government
Public Safety
Police Department
Fire Department
Total Public Safety
FY 2017-18 FY 2018-19 FY 2019-20
Actuals Revised Proposed $ VAR
1,032,235
969,639
881,199
(88,440)
998,277
1,133,082
1,065,439
(67,643)
2,471,270
3,130,605
3,444,155
313,550
2,867,389
3,178,090
3,432,795
254,705
2,233,510
2,593,298
2,623,784
30,486
6,479,668
6,897,255
7,156,448
259,193
$ 16,082,349 $
17,901,969 $
18,603,820
$ 1,819,620
VAR
-9.1%
-6.0%
10.0%
8.0%
1.2%
3.8%
10.2
59,322,549
62,939,228
66,083,985
3,144,757
5.0%
49,977,713
51,048,010
53,190,704
2,142,694
4.2%
$ 109,300,262
$ 113,987,238
$ 119,274,689
$ 5,287,451
4.6%
Community Development
Community Development
Public Works -Water Quality
Total Community Development
Public Works
Public Works - Municipal Operations
Public Works
Utilities
Total Public Works
Community Services
Recreation & Sr. Services
Libraries & Arts
Finance - Parking Meters
Total Community Services
General Fund Non Dept Exp
FY 2017-18 FY 2018-19 FY 2019-20
A,+i inic
Revised Proposed $ VAR % VAR
11,644,418
12,916,636
12,871,228
(45,408)
-0.4%
744,701
781,187
1,243,286
462,099
59.2%
$ 12,389,119 $
13,697,823 $
14,114,514 $
416,691
3.0%
24,394,050
26,393,860
26,907,927
514,067
1.9%
7,817,947
9,044,959
9,818,374
773,415
8.6%
3,995,163
4,336,142
4,448,750
112,608
2.6%
$ 36,207,160 $
39,774,961 $
41,175,051
$ 1,400,090
3.5%
12,428,028
13,656,219
13,849,859
193,640
1.4%
8,901,646
9,670,065
9,244,579
(425,486)
-4.4%
1,754,798
3,033,196
2,304,921
(728,275)
-24.0%
$ 23,084,472 $
26,359,480 $
25,399,359
$ (960,121)
-3.6%
264,297
131,896
121,896
(10,000)
-7.6%
General Fund Operating Expenditures $ 197,327,659 $ 211,853,367 $ 218,689,329 $ 6,835,962 3.2%
li
FY 2018-19
FY 2019-20
Adopted
Proposed
Budget
Budget
$ VAR
% VAR
General Fund CIP
5,525,000
5,000,000
(525,000)
-9.5%
Facilities Financing Plan (FFP)
8,500,000
10,020,333
1,520,333
17.9%
Facility Maintenance Plan (FMP)
1,000,000
2,500,000
1,500,000
150.0%
Harbor & Beaches Capital Plan
4,000,000
5,500.000
1,500,000
37.5%
800 MHz Radio Fund
534,000
500,000
(34,000)
-6.4%
Neighborhood Enhancement Projects
2,428,885
5,071,115
2,642,230
108.8%
Assessment Districts #114 & #114B
-
88,804
88,804
0.0%
Workers' Compensation
-
3,000,000
3,000,000
0.0%
General Liability
4,200,000
-
(4,200,000)
-100.0%
Equipment Fund
150,000
-
(150,000)
-100.0%
Total
$ 26,337,885
$ 31,680,252
5,342,367
20.3%
li
• Consultant for Airport related issues: $400k
• Fire Paramedic School: $200k (One -Time)
• Fire EMS Equipment Replacement: $100k (One -Time)
• Fire MetroNet JPA Membership Increase: $147k
• General Liability/Property/Excess WC Insurance: $290k
• CityNet Homeless Services: $200k
• Maintenance & Operations Specialist & Bucket Truck: $63k
• Wastewater Utilities Specialist (FTE) : $60k
• Water Capital Outlay purchases: $130k (One -Time)
• Contract resources to bolster internal and external audit efforts $110k
Add a footer 18
�Otal $ 24,747,859 $ 28,085,796 $ 30,844,648 2,758,852 9.8%
19
FY 2017-18
Revised
FY 2018-19
Adopted
FY 2019-20
Proposed
$ VAR
% VAR
General Liability
4,068,234
6,239,000
6,615,000
376,000
6.0%
Worker's Compensation
2,753,921
3,753,921
4,610,000
856,079
22.8%
Compensated Absences
2,509,547
2,533,649
2,625,002
91,353
3.6%
IT Operations & Equipment
5,756,155
5,964,619
7,149,136
1,184,517
19.9%
Vehicle Maint & Replacement
4,816,271
4,958,798
5,097,724
138,926
2.8%
Other Equipment Replacement
800,893
800,893
895,535
94,642
11.8%
Retiree Insurance or OPEB
4,042,838
3,834,916
3,852,251
17,335
0.5%
�Otal $ 24,747,859 $ 28,085,796 $ 30,844,648 2,758,852 9.8%
19
860
EMf*yj
820
805
800 792
0 780
'+a 76.3
Ln 760 752
a_
74 75`
0 728 7.30 724 726 726 727
720
700
680
660 20
2009 2010 2011 2012 2015 2014 2015 2016 2017 2018 2019 2020
Fiscal Year
Accelerated PERS Payment History
Normal Cost 15,424,068 1 16,178,468 1 16,766,294 1 17,887,855
Minimum Payment
Additional Discretionary Payment
Total Planned UAL Payment
21,265,608
-
24,958,890
8,914,595
25,698,507 26,469,557
8,801,493 8,530,443
21,265,608
33,873,485
34,500,000 35,000,000
Total Expected PERS Contribution
Employee Contribution
Total Annual PERS Cos
36,689,676 50,051,953 51,266,294 52,887,855
9.447.341 10.083.183 10.324.540 10.455.263
6 1 39.968.770 1 40.941.754
Orange Comparison County Pension Payment Plans
2017
Valuation1
• • •
Agency
AL
UAL
FS
UAL
Total Pmts
Pmt Efficiency
City of Anaheim Total2,534,550,976:
.......................................................................................................................................................................................................:............................................................:...................................................................................................¢................................................................,....................................................
741,068,980:
70.8%
♦
765,071,137
1,514,945,993
198%
City of Brea Total
384,756,109:
121,252,581 :
68.5%
♦
125,739,198
257,714,835
205%
:.....................................................
City of Buena Park Total135,767,673:
......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:.................................................................:.....................................................
..........................................................
.;......
39,221,940:
......... ......... ...
711%
.......................................................................
♦
.................................................................
40,454,4-41
78,190,765
193 6
City of Costa Mesa Total561,805,136:
........................................................................................................................................................................................................................................................................................................................................................................¢................................................................,....................................................
212,923,672:
62.1 %
218,582,780
448,749,985
205%
City of Cypress* Total
......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:.................................................................:.....................................................
77,989,853:
18,083,147:
76.1 %
19,428,798
38,181,448
197%
City of FuIlertonTotal
......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:................................................................:.....................................................
759,201,771
234,893,103
69.1%
245,308,269:
513,852,707:
209%
City of Garden Grove Total
.......................................................................................................................................................................................................:............................................................:...................................................................................................¢................................................................;....................................................
810,370,322
268,412,094
66.9%
♦
277,299,537
568,946,411:
205%
City of H untngton Beach Total
1,267,782,797
403,394,647
68.2%
♦
415,378,946:
840,702,143:
202%
......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:.................................................................:.....................................................
City of I rvine Total
648,190,242:
¢...........................................................¢........................................................................................................................................................................................................................
154,834,682:
76.1 %
143,436,013:
265,164,006:
185%
Cityof La Habra Total
109,736,831
26,498,700
75.9%
♦
27,862,230:
........................... ¢................................................................
56,060,884:
201%
;....................................................
City of Laguna Beach Total
......................................................................................................................................................................................................................................................................................................................................................................,................................................................,....................................................
110,341,091:
27,243,435:
75.3%
♦
26,964,768
50,220,994
186%
City of Mission Viejo Total82,812,124
19.596,811
76.3°x6
♦
19,947,678:
35.963,154:
180%
....................................................................................................................................................................................................,........
City of Newport Beach Total
939,503,881:
319,088,982
66.096
305,994,956
509,864,150
167%
.......................................................................................................................................
City of Orange Total
.................................................................................................................................................................................................................
................................................................
851,746,500:
....
256,020,282
......................................
69.9%
.....................................
.............
265,870,894
I 548,323,701
206%
C ity of S anta A n a Total
......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:.................................................................:.....................................................
1,955,454,608
613,781,439 :
88.8%
635,622,920:
1,280,054,051:
201%
City of Tustin Total
.......................................................................................................................................................................................................:............................................................:...................................................................................................¢................................................................;....................................................
112,720,267
26,806,151
76.2%
28,340,198:
56,922,580:
201%
City of Westminster Total127,883,624:
.......................................................................................................................................................................................................:............................................................:...................................................................................................¢................................................................,....................................................
39,342,203:
69.2%
♦
40,431,030
79,306,054
196%
City of Yorba Linda Total69,845,408:
......................................................................................................................................................................................................¢...........................................................¢..................................................................................................:.................................................................:.....................................................
21,183,584:
69.7%
21,466,831
43,314,830
202%
Irvine Ranch Water District Total
260,190,689:
62,900,429 :
75.8%
63,953,833:
111,870,935:
175%
.......................................................................................................................................................................................................:............................................................:...................................................................................................¢................................................................;....................................................
Santa Margarita Water District Total
94,619,320
29,770,735
68.5%
♦
30,545,326:
59,643,437:
195%
Grand Total
11,995,269,252:
3,637,277,537:
69.4%
3,717,699,793:
7,357,993,063
199%
an no/
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2013
79.8%
0 70.3% 71.7% ------------ - -- --
7 6%67.9 ---' -
6 5% _ _ _ _ -r--- 73.1%
62.8% -64.3%
60.8%
CalPERS Projection
Assuming 7.0% annual return
- and no further ADPs
2014 2015 2016 2017 2018 2019 2020
Miscellaneous - Safety
2021 2022 2023 2024 121
FY19-20
Proposed
Budget
UNRESTRICTED RESOURCES 1 1,899,956
Additional Council approved FY 2018-19 appropriations
19BA-041 for emergency repairs due to heavy storms $ (550,000)
19BA-044 additional weed abatement $ (40,000)
Revised Unrestricted Resources
$ 1,3091?956
24
CHANGES TO THE PROPOSED BUDGET AS PRINTED - PERSONNEL RELATED
Budget
Do partment,Account N u m be r0e s c ri pti on Increase (Decrease) Approved
Community Development
.Add 1.0 FTE limited term (3 Year" Planning Technician to assist during General Plan Update process S 63.907
..................................................................................................................................................................................................................................................................................................................................................................................
Increase Department. Assistant .25 FTE limited term (3 -Year" to assist during the General Plan Update process S 17.490
..................................................................................................................................................................................................................................................................................................................................................................................
Human Resources
Revised Employee Pension Contribution ('135.383:,
..................................................................................................................................................................................................................................................................................................................................................................................
Police Department
.Add two motorcycle officers to enhance school safety through additional traffic enforcement and presence 316.212
..................................................................................................................................................................................................................................................................................................................................................................................
Revenue offset from proposed motorcycle officer motor vehicle fine revenue estimated at $50.000 per year S [50.000:,
..................................................................................................................................................................................................................................................................................................................................................................................
Continue limited term (1 -year; funding for cold case investigations S 50.000
..................................................................................................................................................................................................................................................................................................................................................................................
TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET - PERSONNEL RELATED $ 262,226
25
CHANGES TO THE PROPOSED BUDGET AS PRINTED - MAINTENANCE & OPERAT10NS
Budget
rtmentlAccount NumberlDescri
Increase (Decrease) Approved
City Manager - Airport Management
Reduction to professional &technical services budget S (104,304)
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Library
Remove Sculpture Garden Funding from 01060603-811054
Add ScuIDture Garden funding to a new account titled ScuIDture Garden VN B. 01060603-811059
Police Department
$ [115
135
TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET - M&O $ 240,155
TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET - PERSONNEL AND M&O $ 502,381
TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET BYFUND
General Fund $ 398,632
General Fund Arts & Culture (VNB) $ (135,300)
Police Equipment Fund $ 103,749
Total Changes to the Proposed Operating Budget $ 367,381
• Revenues and reserves are strong
• Proposed expenditures increase modestly
• Full-time positions are generally flat
• Reached agreement with almost all bargaining units
• Continuation of aggressive pension payment plan
• Maintain long-term funding of infrastructure savings plans
• Full plate of CIPs funded
• Funding for City priorities: homelessness, airport, General
Plan update
27
Watching sales tax and TOT trends closely
• Retail purchasing is changing and will continue to change
Pension funded status highly sensitive to investment performance
• Significant economic downturn likely to impair pension funded status
Aging Infrastructure will continue to require additional investment
• And resources to execute and complete the projects
28
Questions