The URL can be used to link to this page

Home My WebLink About21 - Fiscal Year 2019-20 Budget Adoption and Proposed Budget Revision Items - PowerPoint (Staff)®� June 11, 2019 Item No. 21 I 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 Important Dates Budget Development Action Fall/ 18 F Finance Committee reviewed the status of major operating liabilities and related funding recommendations 1/22/19 Council was Provided Economic Forecast Briefing 2/2/19 Council Planning Session 2/14/19 Finance Committee reviewed the City's Long Range Financial Forecast update 3/14/19 Finance Committee reviewed the revenue assumptions used to develop the Fiscal Year 2019-20 Operating Budget 4/25/19 Finance Committee was provided and overview of the proposed operating budget 5/14/19 At a joint study session on City Council and Finance Committee to reviewed the proposed operating budget 5/16/19 Finance Committee had another opportunity to seek further clarification on the proposed budget from staff 5/28/19 Council Reviewed the proposed the Capital Improvement Budget (CIP) 5/30/19 Finance Committee finalizes recommendation of 2019-20 Budget 4 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% 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 UNRESTRICTED RESOURCES FY 2018-19 Revised Budget FY 2019-20 Proposed Budget $ 12,090,743 $ - $ - 13,020,333 1,428,885 (1,428,885) - 2,483,791 221,413,058 229,392,161 (775,735) (672,000) 1,878,744 20,000 8,161,694 9,475,236 $ 244,197,389 $ 252,290,636 $ $ VAR % VAR (12,090,743) -100.0% 13,020,333 NA (2,857,770) -200.0% 2,483,791 NA 7,979,103 3.6% 103,735 -13.4% (1,858,744) -98.9% 1,334,641 16.4% 8,093,247 3.3% $ 211,853,367 $ 218,689,329 $ 6,835,962 26,337,885 31,680,252 5,342,367 3,522,346 - (3,522,346) $ 241,713,598 $ 250,369,581 $ 8,655,983 $ 2,483,791 $ 1 1,921,055 $ (562,736) 3.2% 20.3% 3.6% -22.9% h U N RESTRI CTED RESOU ROES Additional Council approved FY 2619-19 appropriations 19BA-041 for emergency repairs due to heavy storms 113BA-044 additional weed abatement 19BA-045 Paramedic Service Fee Revised Unrestricted Resources Proposed Budget Revisions (06/0-5/20113) Increased General Fund Operating Appropriations Less VNB Public Benefit appropriations Capital Improvement Project Additions Revenue Reduction Remised U n restricte-d Resources FY19-20 Proposed Budget 1.9 21.655 (550,000) (40,000) (11,000) 1,320,055 (432,607) 135,000 (125,000) (220,808) (6431415) 676 640 Budget De partmentrAccount NumberrDescription Increase (Decrease} Approved Enhancement of Public Safety I Continue limited term (1-year)funding for cold case investigations (.44 FTE Police Officer" � 50.000 ..................................................................................................................................................................................................................................................................................SUBTOTAL....... 50,000 General Plan Update Process Support 2 Add 1.0 FTE limited term (2 -year) Planning Technician to assist during General Plan Update process 63,907 .................................................................................................................................................................................................................................................................................................................................................................................. 3 Increase DepartmentAssistant.25 FTE limited term (2-year)to assist during the General Plan Update process17,490 ..................................................................................................................................................................................................................................................................................SUEITOTAL....... 81,397 City Council Community Support 4 Contribution to OC River Park for video production (requested by Council Member Herdman)� 10,000 ..................................................................................................................................................................................................................................................................................SUEITOTAL....... 10.000 Utilities Department Services 5 Anticipated increases relate dto future contract for storm drain services (October2019) .................................................................................................................................................................................................................................................................................................................................................................................. $ 197,156 6 Anticipated increases related to future contract far street sweeping services related to prevailing wage (April 2020) .................................................................................................................................................................................................................................................................................................................................................................................. $ 113,750 Ta Reduction of Admin Service fee for Water $ (193,650) Tb .................................................................................................................................................................................................................................................................................................................................................................................. Increase of Admin Service fee for Sewer $ 3,100 Sa .................................................................................................................................................................................................................................................................................................................................................................................. Increase fixed water charges to City water accounts (General Fund) .................................................................................................................................................................................................................................................................................................................................................................................. $ 204,328 Sb Increase fixed water charges to City water accounts (Water Fund)$ ..................................................................................................................................................................................................................................................................................SUEITOTAL....... 20,470 $ 345,154 Budget Revision sXorrections 9 Revised Employee Pension Contribution (Human Resources department) .................................................................................................................................................................................................................................................................................................................................................................................. $ (139,557) 10 Reduction to professional &technical services budget (City Manager, Airport Division) .................................................................................................................................................................................................................................................................................................................................................................................. $ (100,000) 99a Remove Sculpture Garden Funding from 01060603-811054 .................................................................................................................................................................................................................................................................................................................................................................................. $ (115,000) 11b Add SculptureGarden funding to a new account titled Sculpture Garden VNB, 01060603-811059 .................................................................................................................................................................................................................................................................................................................................................................................. $ 135,000 99c Use VNEI Public Benefit reserve to fund Sculpture Garden .................................................................................................................................................................................................................................................................................................................................................................................. $ (135,000) 92 Increase to Great Scott Tree Services Contract (Council approved 311219 with Contract Amendment #2) .................................................................................................................................................................................................................................................................................................................................................................................. $ 90,033 93 One-time purchases of replacement: OeIIebrlte, Live Scan, Polygraph, Handgun to be purchased in FY 19 $ (94,500) SUBTOTAL $ (359,024) TOTAL CHANGES TO THE PROPOSED 0PERATING BUDGET $ 927,527 Budget DepartmentlAccount H u m berlDescription Increase (Decrease} 0103032 11466 Closure of Barking Lot on Peninsula (Newport Blvd & 28th Street) $ (30,258) .................................................................................................................................................................................................................................................................................................................................................................................. 0103031-521350 Reduction to Admin Service Fee for Nater $ (193,650) .................................................................................................................................................................................................................................................................................................................................................................................. 0103031-521355 Increase to Admin Service Fee for Sewer $ 3,100 .................................................................................................................................................................................................................................................................................................................................................................................. 70103-521505 Sale ofWater City revenue increasing due to increased Cityflxed charges above 224,798 ..... SUBTOTAL 3,990 FY 19- Fu I I -t i m e Posit i on Cou nt Adopted Budget 7.2- E F u bl i -c Work Eliminate 1 FT Engineering Technician Ad d 1 FT Rec ords ,spec i a l ist 1 Ut i I [ties Ad d 1 F- M& 0 S pe€ia I ist to Street I light Pro -gr a m 1 FY20 Proposed Budget RWon TSI ft 1 from FY19 ,adopted) 727 FY20 Rf op Ds -ed E u d cret Revi s i ons (Chet k I i st) Fife aepartrnent Eliminate 3 FT Firefighters (3 ) Ad d 3 FT Fi refi-Rhter/Fla ra ren ed i r s 3 FY 20 Proposed with Checklist Changes 727 FY 19 FFE Position Count Adopted Budget 151-001 Ad d _6 FTE Pa ra Iega 1 0.60 Eliminate .5 FTE Office Assistant (0.50) Add _3 FTE Admin Analyst 0_30 Eliminate .75 FTE Building Inspector II (0.75) Add _75 FTE Admin Analyst 0_75 Add .6 FTE Interns 0.60 Add .29 FTE Senior Fiscal Clerk 0.29 Add .95 FTE Lifeguard - Rescue Boats, Marina Flark & Lido Bridge 0.95 Add .75 FTE Human Resource Analyst 0.75 Eliminate _44 FTE Cold Casa Investigators (Limited Term) (0.44) Eliminate .23 FTE Intern (0.23) Ad d .3 FTE Assoc i ate Civi I Engi neers 0.30 Add .525 FTE Office Assistant 0.53 Eliminate .17 FTE FiiN Leader (0.17) Add _04 FTE Recreation Leader 0.04 Add 1.5 FTE Utilities Specialists 1.50 Add 1.0 FTE Maintenance Aide 1_E0 FY2 D Proposed 6u dget Posit ion Tota I ( U p 5.5 2 frorn FYi9 Ad opt ed) 156.52 F'1`20 Proposed Budget Revisions (Checklist) Add 1 FTE Planning Technician (Limited Term -General Plan Update) 1.00 Add .25 FTE Depa rtment Assista nt (Limited Term -General Plan Update) 0.25 Ad d .44 Li m ited Term Col d Case I nvestiiTators 0.44 FY 2 0 Proposed with Checklist Changes 158.211 11 a) Conduct public hearing b) Discuss Council member recommendations for additions, deletions, or modifications to the proposed budget via the Proposed Budget Revisions c) Conduct a straw vote on the Proposed Budget Revisions in two parts: 1. Specific items that Council members request to take action on separately 2. Remaining items as a group d) Based on the straw vote, items approved on the list of Proposed Budget Revisions will be included in the City's Fiscal Year 2019-20 Approved Budget e) Adopt Resolution 2019-54 adopting the City Manager's Proposed Fiscal Year 2019-20 Budget, as amended 12 Questions