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Home My WebLink About24 - Fiscal Year 2021-22 First Quarter Financial ReportQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report November 16, 2021 Agenda Item No. 24 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Scott Catlett, Finance Director/Treasurer - 949-644-3123, scatlett@newportbeachca.gov PREPARED BY: Scott Catlett, Finance Director/Treasurer, scatlett@newportbeachca.gov PHONE: 949-644-3123 TITLE: Fiscal Year 2021-22 First Quarter Financial Report ABSTRACT: The City (City) of Newport Beach Finance Department prepares quarterly financial reports to review the status of revenues and expenditures for the City's funds. This report contains preliminary information on revenues, expenditures, and estimated fund balance for the first quarter of the fiscal year ending June 30, 2022. The first financial report of FY 2021-22 provides an analysis of the financial activity of the City from the months of July through September 2021. Based on information available at the end of the first quarter, positive revenue adjustments are expected and are reflected in the proposed first quarter budget amendment included with this report. Several expenditure budget adjustments are also recommended, all of which are fully offset by the additional revenues. RECOMMENDATION: 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) Approve Budget Amendment No. 22-005, adjusting revenue estimates and expenditure appropriations for the FY 2021-22 budget as further outlined in this report; and c) Receive and file the attached report of budget amendments for the first quarter. DISCUSSION: Economic Overview California's unemployment rate remained steady at 7.5% in September, as the state's employers added 47,400 non-farm payroll jobs, according to data released on October 22, 2021, by the California Employment Development Department (EDD). 24-1 Fiscal Year 2021-22 First Quarter Financial Report November 16, 2021 Page 2 Orange County's unemployment rate was 5.0% at the end of September 2021, compared to 6.3% in July 2021. Nonfarm payrolls in California have increased over the past year in all 11 industry sectors with leisure and hospitality growing the most at 21.7%. Unemployment trends are expected to improve gradually as the economy recovers from the widespread impacts of COVID-19. Newport Beach's hotel occupancy rate stood at 62.2% as of the last week of September and was 19.6% higher than at the same time last year, while room rates were 15.5% higher than the same time last year. When California reopened its economy in June and lifted various COVID-related restrictions, hotel occupancy increased significantly. The City is continuing to see a resulting increase in transient occupancy tax (TOT) revenues, which are quickly trending toward revenue levels seen prior to the COVID-19 pandemic. Federal and state stimulus has inflated consumer ability and willingness to spend on taxable goods. The Consumer Price Index was up 5.4% year -over -year in September 2021, unchanged on a year -over -year basis from June. Retail sales are exhibiting the fastest growth since 2015, with the outlook for local tax revenues remaining positive despite supply chain, pricing and labor concerns. Automobile sales as a major industry group has experienced a classical V-shaped recovery in the aftermath of the COVID-19 recession. New car sales dropped 68% or more at many dealers around the state in the initial weeks after the State of California's (State's) pandemic shutdown order in March 2020. New car and boat sales have since steadily rebounded and are now 22% higher than the same period in 2019, a year before the crisis began. The inventory and supply of new vehicles has been overwhelmed by strong demand due to low financing rates and government stimulus payments. It is expected that the inventory shortfall will influence second quarter growth, following a strong sales spike in the month of July. Higher prices will, however, moderate the impact. This sector is expected to increase at 3% annual growth through fiscal year 2026-27. The economy is expected to continue to grow through the remainder of the fiscal year. However, it is likely that the hardest hit industries will continue to see the highest recovery as a return to normal consumer behavior spurs recovery in sales associated with restaurants, hotels, and general consumer goods purchased in brick -and -mortar establishments. General Fund Revenues Most revenue categories performed at or higher than their budgeted levels last year due to more favorable economic conditions than anticipated when the budget was originally adopted. Compared to the first quarter of last fiscal year, the City is continuing to see positive increases in the categories of sales tax, transient occupancy tax, and service fees and charges. However, it is important to remember that the first quarter of last fiscal year was in the midst of the initial stages of the pandemic. 24-2 Fiscal Year 2021-22 First Quarter Financial Report November 16, 2021 Page 3 Property Taxes - Property taxes are the City's single largest General Fund revenue and typically represent just under 50% of all General Fund revenues. With the recent surge of home prices, this category is expected to continue to perform strongly, which bodes well for future secured property tax revenues. The stay-at-home orders, business closures and other economic impacts affected 2021-22 growth by reducing the annual CPI adjustment from the maximum 2% to 1.036%. The City therefore experienced a net taxable value increase of 4.1 % for the FY 2021/22 tax roll and the assessed value increase between FY 2020-21 and FY 2021-22 was $2.6 billion. The largest growth in assessed values related to prior year transfer of ownership, which accounted for $1.7 billion, or 64.1% of all growth experienced in the City. The second largest change was attributed to the 1.036% Proposition 13 adjustment, which was $579 million and accounted for 22% of the overall growth. As FY 2021-22 assessed values are established in January 2021, and based on the prior calendar year, a strengthening of home sales in the summer of 2020 resulted in a positive impact to the tax roll that mitigated to some extent the smaller CPI adjustment. For FY 2020-21, secured property tax payments came in strong, $1.2 million over budget, which is an indication of timely property tax payments and higher valuations. Based on the higher prior year total assessed valuation, staff recommend increasing the property tax revenue estimate for FY 2021-22 in the first quarter budget amendment by $1.6 million. A greater percent change in sales transactions was realized in the first eight months of the calendar year through August 2021 at 2.67% growth, vs. an average of 2.60% for the entire year in the two previous years. Increased prices regionally were driven by lower inventory and declining interest rates for home loans. The median sale price of a residential home from January to August was $3,020,000, which represents a $432,500 or 16.71 % increase in median sale price from calendar year 2020. The assessed value of sold homes also increased by 52%, which was the second highest increase seen in the last five years. Due to these positive changes, the City is on track to see closer to 5% property tax growth in FY 2022-23. Sales Tax - The second largest funding source for the General Fund is sales tax revenue, typically making up more than 15% of General Fund revenues. The City's sales tax base is largely generated from three main industry categories including autos and transportation, general consumer goods, and restaurants/hotels. Most of these industries are also heavily impacted by tourism. Because these revenues are remitted to the City by the State several months after they are paid by consumers, staff have limited FY 2021- 22 information on which to report in the first quarter. Receipts from April through June of 2021 were 39.4% above the second quarter of FY 2019-20, similar to the statewide average. Limited inventory and higher demands led Autos and Transportation to continue to show quarter over quarter increases, mainly due to a surge of retail sales along with increased prices in March and April of this year. This category is expected to plateau in the upcoming quarters, with anticipated inventory limitations offset by higher prices. The largest categories showing growth through the end of June included the hardest hit areas during the pandemic, specifically restaurants, hotels and general consumer goods. 24-3 Fiscal Year 2021-22 First Quarter Financial Report November 16, 2021 Page 4 Fuel and service stations also saw increased growth due to rising consumption and fuel prices. Building and construction revenues increase by 20.9%, with contractor activity expected to increase in the second quarter. Compared to the same quarter in 2019 prior to the pandemic, an overall 9.5% increase in the City's sales tax revenues has been seen. Autos and Transportation are up 22% from the second quarter of 2019, due to the aforementioned strong car sales as well as increased yacht sales due to additional interest in recreational boating. Allocations from the State and County Pool have increased 44% during that time, which in part is attributable to the Wayfair/AB147 legislation change that allowed for taxation of additional internet sales. This growth in pool revenues is also indicative of the shift that occurred to online shopping habits during the pandemic, which at least in part is expected to remain once the economy has fully returned to normal. The three industry sectors hardest hit during the pandemic have only experienced 7% growth, including business -industrial, fuel and service stations, and restaurant/hotel receipts. The outlook for local tax revenues remains positive despite supply chain, pricing, and labor concerns, and the City expects to see continued growth for the remainder of the fiscal year. As it is early in the year, staff are not recommending a revision to the sales tax revenue estimate at this time. Transient Occupancy Tax -TOT was the City's most severely impacted revenue source as the pandemic unfolded, as most major hotels within the City were temporarily closed towards the end of March 2020 and many didn't start reopening until late May or early June, with some hotels remaining closed in the third quarter. Also, short term rentals were not allowed to operate in the City from early April 2020 until May 20, 2020. The City has seen a steady rebound and comeback for TOT revenues in the months since. Short term rental revenues have steadily increased and did not decline significantly even at the depths of the pandemic. As leisure travelers have returned, several hotel properties in the City have reported record TOT tax receipts in the summer months. Higher occupancy rates, combined with higher average room rates, have resulted in TOT revenues that have exceeded the revenue estimate included in the adopted budget year-to-date. Data provided by Visit Newport Beach illustrates this very positive trend in both occupancy and room rates: 100.0% Q 99 80.(n a ¢ 60.0% i� p o 40.0% 20.0% 0.0% 79.8% 78.7% 75.5% 51.2% 85.9% 81.8% 76.2% 78.7% 69.1% 71.5% 71.696 67.6% 67.3% 74. 227% 296% 30.0% JAN FEB MAR SOURCE• OCTOBER 13, 2021, STR ROM 44.2% 43.91% 45.2% 37.3% 38.2% 34.3% 27.6% 25.0% 13.5% APR MAY JUN JUL AUG SEP OCT NOV DEC X2021 X2020 ♦2019 24-4 Fiscal Year 2021-22 First Quarter Financial Report November 16, 2021 Page 5 $455 yr $408 $414 $426 UZ945394 $387 $396 y $373 Y $356 $355 $322 $327 $328 $317 a$306 $328 $326 $319 $290 $2299 $292 $307 $285 $284 $283 $296 $298 $255 24-JUL 31-JUL 7 -AUG 14 -AUG 21 -AUG 28 -AUG 4 -SEP 11 -SEP 18 -SEP 25 -SEP 2 -OCT 9 -OCT THIS YEAR —m—LAST YEAR While the Fashion Island Hotel remains closed and the Marriot remains under renovation, both properties are expected to reopen fully in the months ahead with new branding that should command higher room rates. These reopenings, combined with the expected return of more business travelers, are anticipated to have additional positive impact on the City's TOT revenues. Staff remains cautious, however, to predict the exact timing of these trends and the reopening date for the Fashion Island Hotel has yet to be announced. When crafting the TOT revenue estimate for FY 2021-22, staff assumed that short term rental -related TOT revenues would continue to grow from their FY 2020-21 levels and that hotel TOT would start the year at 60% of pre -pandemic revenue levels and end the year at 80% of pre -pandemic revenue levels. As can be seen in the charts above provided by Visit Newport Beach, occupancy levels were at 83% of pre -pandemic levels in August and 75% for September. During those same two months, average room rates were higher than in recent years. While the Fashion Island Hotel remains closed, these are very encouraging signs that indicate a trend that will likely result in TOT revenues exceeding the current revenue estimate. The table below illustrates a comparison of hotel TOT revenues by fiscal year and quarter showing the strong growth in the first quarter of FY 2021-22 and how it compares to the prior three years. Transient Occupancy Tax Receipts by Quarter for FY 2018-19 — FY 2021-22 24-5 Fiscal Year 2021-22 First Quarter Financial Report November 16, 2021 Page 6 While staff believes that these positive trends are likely to continue as the fiscal year progresses, conservatism is warranted given the pandemic -related impacts to tourism and business travel that have been seen over the past two years. Staff are therefore not recommending a revision to the TOT revenue estimate at this time. 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 the following: • Other Taxes — real property transfer taxes, business license taxes, marine charter taxes, and franchise fees. • Service Fees and Charges — plan check fees, recreation classes, emergency medical services fees, and numerous other cost -of -service fees. • Parking Revenue — all General Fund related metered parking fees that are assessed throughout the various parking zones of the City. • Licenses and Permits — fees charged to process building related permits, street closure permits, dog licenses, and police tow franchise fees. • Property Income — 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. • Fines and Penalties — parking citation fines collected by the City, administrative citation fines, fines remitted to the City from the County for vehicle code violations, and false alarm penalties. • Intergovernmental Revenues — federal, state, and local grant revenues, which includes, but is not limited to, the City's portion of the '/2 cent sales tax revenue paid to the County for public safety, state mandate reimbursements, reimbursement for strike teams sent to assist with fires, and revenue sharing with the County of Orange under the Waste Disposal Agreement (WDA). • Investment Earnings — revenue generated from the investment of City funds. • Miscellaneous Revenues — restricted revenue, damage to City property, bad debt, donations and contributions, non-operating revenues such as proceeds from the sale of materials and equipment, and other miscellaneous revenues. Service fees and charges revenues are projected to exceed the adopted budget by $1.1 million. This is primarily due to increased revenue received from recreation fee- based classes and the Junior Lifeguard program. As a result of the strong interest that has been seen in returning to in-person activities, the original revenue estimates included in the adopted budget for fee-based recreation classes must be adjusted upward. A related revenue estimate increase in facility rental revenues of $183,000 is also proposed. Intergovernmental revenues are projected to exceed the adopted budget by $714,000. The City participates in the California Fire Service and Rescue Emergency Mutual Aid System, which reimburses agencies for their emergency assistance to the State of California and to federal fire agencies. In the first quarter of Fiscal Year 2021-22 the City received $280,875 from the State for staff assigned to strike team deployments. 24-6 Fiscal Year 2021-22 First Quarter Financial Report November 16, 2021 Page 7 Staff seeks to align the FY 2021-22 budget with actual revenues received through the first quarter, which includes increasing revenue estimates & expenditure appropriations by $280,875 and is reflected as an increase in intergovernmental revenues. The City is also expected to receive $433,244 from the State of California Department of Housing and Community Development for the SB 2 Permanent Local Housing Allocation program grant, which will be used to offset the City's General Fund contribution to the Mind OC Mobile Crisis Response Team. Revenue is expected to be received in the current fiscal year, has been reflected in the revised projection for intergovernmental revenues, and will be appropriated when received. Overall, the positive adjustment to property tax revenues, revenue from fee-based classes, intergovernmental revenues, and several other categories of revenue will have a positive impact on the expected year-end results for FY 2021-22, as illustrated in the following table, with total General Fund revenues now projected to exceed the adopted budget by $3.7 million. FY 2021-22 Projected General Fund Revenues Property Taxes $ 119,157,540 $ 122,229,980 $ 122,229,980 $ 123,833,217 $ 1,603,237 1.3% Sales Tax 38,956,275 40,275,670 40,275,670 Transient Occupancy Tax 16.886,197 19,027,493 19,027.493 Other Taxes Service Fees & Charges Parking Revenue Licenses and Permits Property Income Fines & Penalties Intergovernmental 12,849,340 10,815,117 10,815,117 18.264,952 19,046,329 18,897.329 40,275,670 19,027,493 10,815,117 - 20,010,449 1,113,120 7,074,853 5,681,942 5,681,942 5,681,942 5,133,399 5,106,646 5,106,646 5,106,646 5,115,255 5,044,403 5,044,403 5,227,203 4,012,568 3,292,102 3,292,102 3,292,102 5,175,738 1,760,934 1,797,764 2,511,883 182,800 714,119 G.0% 0.0% 0.0% 5.9% 0.0% 0.0% 3.6% 0.0% 39.7% Investment Earnings 1,598,624 1,112,200 1,112,200 1,112,200 0.0% Misc Revenues 1,359,034 734,148 978,648 978,648 - 0.0% Total Revenues $ 235,583,776 $ 234,126,964 $ 234,259,294 $ 237,872,57a $ 3,613,276 1.5% General Fund Expenditures The FY 2021-22 General Fund revised expenditure budget totals $234.8 million. Year to date expenditures of $46.9 million equate to approximately 20% of the budget. Some departments incur a greater or lower level of expenditures in the first half of the year than in the second half due to the timing and seasonality of their operations or programs, and the trends in the current fiscal year are generally consistent with prior years. Existing appropriations are on target to fund all current operational expenditures and likely generate year-end budget savings. Significant expenditure budget updates include the following: • Recreation and Senior Services: During the previous fiscal year, the department reduced its operational revenues and expenditure budgets in response to cancelled classes relating to the COVID-19 shutdowns. 24-7 Fiscal Year 2021-22 First Quarter Financial Report November 16, 2021 Page 8 At the end of quarter one, staff is seeking to restore expenditure appropriations back to pre-COVID levels due to the reinstatement of cancelled classes. The department anticipates an additional $1.3 million of class revenues with a corresponding $637,000 needed of expenditure appropriations for contract instructors. • Last fiscal year, as part of the response to the anticipated reduction in revenues due to the coronavirus pandemic, the City employed a tiered budget reduction strategy to balance the budget. Included in the first tier of cuts to the operating budget was a reduction to utility budgets. The water budget for the Public Works Department related to City parks was previously reduced by $237,000 as part of this budget balancing strategy. This reduction was not restored with the adoption of the FY 2021-22 budget. Staff projects current budget levels will be insufficient for the current fiscal year and recommends the restoration of the $237,000 previously cut from this budget line item to cover expenditures in the current fiscal year. • As discussed earlier in this report, an expenditure appropriation of $280,875 is required to align with additional revenues from the California Fire Service and Rescue Emergency Mutual Aid System. Other than these limited appropriations that are fully offset by the proposed revenue estimate adjustments, no expenditure budget adjustments have been identified that require attention at this time. On October 26, 2021, the City Council approved $31.0 million of recommended appropriations from prior year unrestricted General Fund resources as follows: 1. CaIPERS Unfunded Liability — $5.0 million to bring the City's annual unfunded liability contribution to CalPERS up from $35 million to $40 million, consistent with recent years and the recommendation of the Finance Committee. 2. Facilities and Infrastructure Replacement Liabilities — $10.5 million toward additional contributions to long-term infrastructure liabilities within the Facilities Financial Plan and Harbor and Beaches CIP. Funds were set aside, with specific allocations being recommended as part of the upcoming FY 2022-23 budget process. 3. CIP and Neighborhood Enhancements — $15.5 million toward the FY 2022-23 capital improvement program, to include neighborhood enhancement projects. Funds were set aside with specific allocations being recommended as part of the upcoming FY 2022-23 budget process. The following table illustrates the year-end projection at this time, which includes the recommended budget adjustments and appropriations from prior year surplus. As it is early in the year, staff is not yet projecting any budget savings, though as is the case each year, additional savings are anticipated to materialize as the fiscal year progresses. 24-8 Fiscal Year 2021-22 First Quarter Financial Report November 16, 2021 Page 9 FY 2021-22 Projected General Fund Expenditures Salary & Benefits $ 151,713,101 $ 156.823.806 $ 157.104,681 $ 280.875 G.2°% Contract Services 24,732,931 26,446,235 26,983,294 537,x59 2.0% Grant Operating 633,333 608,358 608.358 - 3.0% Utilities 3,311,315 3,311,315 3,248,516 237,231 7.9% Supplies & Materials 3.739.730 4.370.114 4.405.664 35.550 0.8°x6 Maintenance & Repair 12,643,923 13,533,392 13,543,092 39,733 3.3°x6 Travel & Training 814.568 513.125 833.079 19.951 2.5°x6 General Expenses 2,130,552 2,304,295 2,306,795 2,500 0.1°x6 Internal Svc Charge 25.078.890 25.093.732 25.093.732 - 0.096 Risk Management 750,915 750,915 750,915 - 0.()% Capital Expenditures 780.438 1.068.472 1.071.143 2.672 0.3°x6 Total Expenditures $ 225,963,632 $ 234,790,764 $ 235,946,271 $ 1,155,548 4.596 General Fund Reserves We are fortunate that the City was in excellent financial health prior to the global pandemic. Conservative budgeting and sound financial policies have resulted in a trend of General Fund operating surpluses and strong reserve levels for several years. As the economy emerges from the pandemic, the City is well positioned to continue delivering a high level of service to the community, while targeting surplus resources to key priorities each year. Staff currently projects that unrestricted General Fund resources will total $1.1 million at the end of Fiscal Year 2021-22, an improvement of $1.1 million versus the adopted budget surplus of $32,000. As is the case each year, staff anticipates that additional budget savings will be realized, and the final year-end budget surplus will exceed this amount. The table below illustrates the prior year sources and uses of funds as compared to the adopted budget, the revised budget, and the projected year-end results. General Fund Sources and Uses BEGINNING UNRESTRICTED FUND BALANCE $ 24,881,225 $ 31,836,884 $ 31,836,884 $ 31,836,884 $ 0.8% SOURCES: Operating Revenues 235;583.776 234.1265964 2345259.294 23758725570 3,745,606 16% Less: Restricted Revenues (958;152) (1;128;513) (1;128;513) (1128513) 26.830.300 0.0% Prior Year Resources Carried Forward 2;075632 3;072666 3;072;666 3;072,666 G.GaA Release of Restricted Funds 2.392.197 1.220.000 1.220.000 1.220.000 - 0.01h Transfers In from Other Funds 21.804.961 11.977.157 11.977.157 11.977.157 - 0.0% TOTAL SOURCES 268,898,414 246,195,688 249,488,684 253,813,880 6,818,272 2.8% USES: Operating Expenditures 22077057249 225;963632 23477907764 2357946271 9;982639 4.4% Transfers Out 27.467.575 20.200.000 47.030.300 47.030.300 26.830.300 132.81/0 Resources Carried Forward to FY 2021-22 3.072.666 0.040 Addition to 25% Contingency Reserve 256972F,5 - - - - 0 0% TOTAL USES 253,942,755 246,163,632 281,821,064 282,976,571 36,812,939 15.0% ENDING UNRESTRICTED FUND BALANCE $ 31,036,884 $ 31,068,860 $ (1,383,576) $ 1,074,193 $ (29,994,667) -96.5% CHANGE IN FUND BALANCE $ 6,955,659 $ 31,976 $ (32,420,460) $ (29,962,691( $ (29,994,667) 24-9 Fiscal Year 2021-22 First Quarter Financial Report November 16, 2021 Page 10 As the data presented in this report reflects only 25% of the fiscal year, there remain opportunities for positive or negative variances. The risks associated with variances are further amplified by the lingering effects of the pandemic. While this report reflects the best information currently available to staff, variances will occur. Staff therefore recommends caution when viewing the projected ending unrestricted fund balance (surplus) of $1.1 million, which is still very much subject to revision as the year progresses. Other Funds Other funds that are subject to revenue volatility include Tidelands, Gas Tax, Measure M, SB1 RMRA (Road Maintenance and Rehabilitation Account), and the Water and Wastewater funds. An analysis of the budget performance for these funds through the first quarter of this fiscal year indicates that no budget adjustments are necessary and variances between budgeted and actual amounts are within reason. Quarterly Report of Budget Amendments Attached to this report as Attachment B is the quarterly listing of Budget Amendments that was previously provided to the Finance Committee. This listing is also provided to the City Council as part of each quarterly budget update in an effort to enhance transparency. FISCAL IMPACT: As a result of approval of the Budget Amendment (Attachment A) included with this report, revenue estimates will be adjusted upward by $3,613,276 and $1,155,508 will be appropriated to the expenditure accounts listed in the Budget Amendment. 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 — Budget Amendment No. 22-005 Attachment B — Budget Amendments for the First Quarter 24-10 ATTACHMENT A Budget Amendment No. 22-005 24-11 EW po °2'' !kT� City of Newport Beach �? BUDGET AMENDMENT c't<rFORN r 2021-22 BA#: 22-005 Department: Finance Requestor: Scott Catlett ❑ CITY MANAGER'S APPROVAL ONLY 0 COUNCIL APPROVAL REQUIRED ONE TIME: ❑ Yes ❑- No Approvals Finance Director: Date A Citv Clerk: Date EXPLANATION FOR REQUEST: To increase revenue estimates and expenditure appropriations relating to the fiscal year 2021-22 quarter one staff ❑ from existing budget appropriations report. 0 from additional estimated revenues ❑ from unappropriated fund balance Fund # nro nhiprt Prniprt Dpsrrintinn InrrPaSP or(DprrpesPlS 010 0107010 521445 PROGRAM SUPPORT - SPECIAL EVENT PERMIT FEES 47,000.00 010 0107011 521425 FEE BASED CLASSES - FEE BASED CLASSES 180,000.00 010 0107012 521435 ADULT SPORTS - RACKET SPORTS 19,000.00 010 0107012 521475 ADULT SPORTS - ADULT SPORTS 147,360.00 010 0107013 521485 YOUTH SPORTS - YOUTH SPORTS 5,000.00 010 0107015 1521415 PRESCHOOL PROGRAMS - PRESCHOOL CAMPS 18,750.00 010 0107015 1521480 PRESCHOOL PROGRAMS - TINY TOT PROGRAM 9,710.00 010 0107020 521425 NEWPORT COAST COMMUNITY CENTER - FEE BASED CLASSE 200,000.00 010 0107020 551165 NEWPORT COAST COMMUNITY CENTER - FACILITY RENTAL F 25,000.00 010 0107021 521425 COMMUNITY YOUTH CENTER - FEE BASED CLASSES 90,000.00 010 0107021 551165 COMMUNITY YOUTH CENTER - FACILITY RENTAL FEES 7,800.00 010 0107022 551215 CIVIC CENTER RENTALS - CIVIC CNTR COMM ROOM FEES 25,000.00 010 _ 0107023 521425 MARINA PARK- FEE BASED CLASSES 20,000.00 010 0107023 521426 MARINA PARK - TIDELANDS FEE BASED CLASSES 207,300.00 010 0107023 521427 MARINA PARK -TIDELANDS BOATING PROGRM CLASS 19,000.00 ;010 0107023 521455 MARINA PARK - SURFING CLASSES 150,000.00 ;010 0107023 551165 MARINA PARK - FACILITY RENTAL FEES 65,000.00 O10 0107024 551165 FACILITY MAINT & OPERATIONS - FACILITY RENTAL FEES 25,000.00 010 0107024 551170 FACILITY MAINT & OPERATIONS -YSC FIELD FELS 35,000.00 010 01003 411000 'GENERAL FUND MISC NON OP - PROPERTY TAX CURRENT SE 1,550,913.20 ,010 01003 411010 GENERAL FUND MISC NON OP - PROPERTY TAX CUR UNSECl 45,106.83 010 01003 411025 GENERAL FUND MISC NON OF - PROP TAX HOMEOWNERS E: 7,217.09 010 01040401 431245 FIRE OPERATIONS -CAL OES 280,875.00 010 0102041 431455 G2220 CITY MGR OUTREACH SERVICES - OTHER GOVT GRANTS 433,244.00 Subtotal $ 3,613,276.13 Fund # Org Object Project Description Increase or (Decrease) $ 010 0107011 811036 FEE BASED CLASSES - CONTRACT RSS INSTRUCTORS 43,380.60- 010 0107012 811050 ADULT SPORTS -TENNIS CONTRACT INSTRUCTORS 21,017.00 010 0107020 811036 NEWPORT COAST COMMUNITY CENTER - CONTRACT RSS IN`. 29,838.00 010 0107021 811036 COMMUNITY YOUTH CENTER - CONTRACT RSS INSTRUCTOR: 30,430.00 010 0107023_ 811036 MARINA PARK - CONTRACT RSS INSTRUCTORS 20,486.00 010 0107023 811046 MARINA PARK - TIDELANDS INSTRUCT PYMTS 144,370.00 010 0107023 811051 MARINA PARK - SURF CONTRACT INSTRUCTORS 225,538.00 010 010 01070005 01070005 851016 _ 4861001 RECREATION ADMIN - MAINT & REPAIR BUILDING RECREATION ADMIN -TRAVEL & MEETINGS NOC 4,000.00 500.00 010 ,01070005 861003 RECREATION ADMIN -TRAINING 75.00 24-12 010 _ 01070005_ 871003 RECREATION ADMIN - POSTAGE/FREIGHT/EXPRESS NOC 2,500.00 010 0107010 _ 811027 _ _ PROGRAM SUPPORT -SERVICES CITY PRINT CONTRACT 2,000.00 010 0107010 841007 PROGRAM SUPPORT - SUPPLIES OFFICE NOC 3,000.00 010 0107010 861001 PROGRAM SUPPORT -TRAVEL & MEETINGS NOC 438.00 010 0107010 861003 PROGRAM SUPPORT -TRAINING 3,000.00 010 0107011 841046 FEE BASED CLASSES - SPECIAL DEPT EXPENSE NOC 2,000.00 010 0107011 _ 861001 FEE BASED CLASSES -TRAVEL & MEETINGS NOC _ 1,000.00 010 0107011 861003 FEE BASED CLASSES -TRAINING 500.00 010 0107011 911004 FEE BASEDCLASSES- COMPUTER EQUIPMENT 900.00 010 0107012 841015 ADULT SPORTS- SPECIAL DEPT SUPPLIES NOC 1,000.00 010 010 0107012 0107013 861003 861003 ADULTSPORTS-TRAINING YOUTHSPORTS-TRAINING 125.00 125.00 010 0107014 861003 YOUTH PROGRAMS -TRAINING 500.00 010 0107015 841015 PRESCHOOL PROGRAMS - SPECIAL DEPT SUPPLIES NOC 750.00 010 0107015 861003 PRESCHOOL PROGRAMS - TRAINING 500.00 010 0107016 841015 NATURAL RESOURCES - SPECIAL DEPT SUPPLIES NOC 500.00 010 0107016 851007 NATURAL RESOURCES - AUTOMOTIVE FUEL/WASH 500.00 010 0107016 861001 NATURAL RESOURCES - TRAVEL & MEETINGS NOC 500.00 010 0107016 861003 NATURAL RESOURCES - TRAINING 500.00 010 0107017 841015 SPECIAL EVENTS- SPECIAL DEPT SUPPLIES NOC 4,000.00 010 0107018 841015 PARK PATROL- SPECIAL DEPT SUPPLIES NOC 11000.00 010 0107018 861003 PARK PATROL -TRAINING 500.00 010 0107019 861003 AQUATICS - TRAINING 500.00 010 0107020 841014 NEWPORT COAST COMMUNITY CENTER - SUPPLIES JANITOR 1,500.00 010 0107020 861001 NEWPORT COAST COMMUNITY CENTER - TRAVEL & MEETIN 500.00 010 0107020 861003 1 NEWPORT COAST COMMUNITY CENTER - TRAINING 375.00 010 0107021 841007 COMMUNITY YOUTH CENTER -SUPPLIES OFFICE NOC 800.00 010 0107021 841015 COMMUNITY YOUTH CENTER -SPECIAL DEPT SUPPLIES NOC 1,000.00 010 0107021 861001 COMMUNITY YOUTH CENTER -TRAVEL & MEETINGS NOC 250.00 010 0107021 861003 COMMUNITY YOUTH CENTER - TRAINING 188.00 010 0107023 841007 MARINA PARK- SUPPLIES OFFICE NOC 1,500.00 010 0107023 841014 MARINA PARK - SUPPLIES JANITORIAL NOC 2,000.00 010 0107023 841015 MARINA PARK- SPECIAL DEPT SUPPLIES NOC 5,000.00 010 0107023 851007 MARINA PARK -AUTOMOTIVE FUEL/WASH 700.00 010 0107023 851016 MARINA PARK - MAINT & REPAIR BUILDING 10,000.00 010 0107023 861001 MARINA PARK -TRAVEL & MEETINGS NOC 3,000.00 010 0107023 861003 MARINAPARK-TRAINING 3,000.00 010 0107024 811012 FACILITY MAINT & OPERATIONS - SERVICES JANITORIAL 20,000.00 010 0107024 841014 FACILITY MAINT & OPERATIONS - SUPPLIES JANITORIAL NOC 7,500.00 010 0107024 841015 FACILITY MAINT & OPERATIONS - SPECIAL DEPT SUPPLIES N 5,000.00 010 0107024 851010 FACILITY MAINT & OPERATIONS - MAINT & REPAIR EQUIPM 500.00 010 0107024 851016 FACILITY MAINT & OPERATIONS - MAINT & REPAIR BUILDIN 8,000.00 010 0107031 841006 OASIS -OFFICE SUPPLY CITY PRINTING 10,000.00 010 0107031 861001 JOASIS - TRAVEL & MEETINGS NOC 1,000.00 010 0107031 861003 OASIS -TRAINING 2,000.00 010 0107031 911001 OASIS -OFFICE EQUIPMENT 1,000.00 010 0107031 911039 OASIS -OFFICE FURNITURE/FIXTURES 272.07 010 0107032 861003 OASIS FITNESS CENTER - TRAINING 500.00 010 0107032 911001 OASIS FITNESS CENTER - OFFICE EQUIPMENT 400.00 010 0107032 911006 OASIS FITNESS CENTER - FITNESS EQUIPMENT 99.57 010 0107033 851007 OASIS TRANSPORTATION -AUTOMOTIVE FUEL/WASH 5,000.00 010 0107033 861003 OASIS TRANSPORTATION -TRAINING 375.00 010 0108031 831005 PARKS - UTILITIES WATER 237,201.00 010 01040401 713010 FIRE OPERATIONS - OT STRIKE TEAMS & MUTUAL AID 280,875.00 Subtotal $ 1,155,507.64 Fund # Obiect Description Increase or (Decrease) S 010 300000 GENERAL FUND - FUND BALANCE CONTROL 2,457,768.49 Subtotal$ — -- 2,457,768.49 Fund Balance Change Required 24-13 ATTACHMENT B Budget Amendments for the First Quarter 24-14 City of Newport Beach Fiscal Year 2021-22 Budget Amendments Quarter Ending September 30, 2021 Net Effect on Fund Balance BA # Date Amendment Type Fund Revenues Expenditures Increase/(Decrease) Department Explanation 001 7/27/2021 City Council GENERAL FUND - 792,800.00 (792,800.00) Public Works To increase expenditure appropriations from Assessment District ASSESSMENT DIST #124 792,800.00 792,800.00 #124 with an advance from General Fund unappropriated fund balance for the engineering design work. 002 7/14/2021 City Manager CONTRIBUTIONS FUND 971,480.00 (527,520.00) 1,499,000.00 Utilities To transfer expenditure appropriations and revenue estimates WATER CAPITAL FUND - 527,520.00 (527,520.00) related to the Grant Assistance Agreement with the U.S. Bureau of Reclamation for the Advanced Meter Project from the Water Fund to the Contributions Fund. 003 8/24/2021 City Council GENERAL FUND 24,830.00 24,830.00 Police To increase revenue estimates and expenditure appropriations from the approval and acceptance of the California Department of Alcoholic Beverage Control (ABC) 2021-22 Alcohol Policing Partnership Program (APP) Grant. 004 9/14/2021 City Council GENERAL FUND 200,000.00 200,000.00 Library To increase revenue estimates and expenditures appropriations by accepting a check from Friends of the Library to enhance Library collections and programs. 006 9/14/2021 City Council GENERAL FUND 12,000.00 12,000.00 Library To increase revenue estimates and expenditures appropriations by 009 8/24/2021 City Manager GENERAL FUND 10,000.00 10,000.00 Library accepting a check from California State Library to support Library Youth Programming. 007 8/24/2021 City Council FIRE EQUIPMENT FUND 274,900.00 302,390.00 (27,490.00) Fire To increase revenue estimates and expenditure appropriations 010 8/25/2021 City Manager GENERAL FUND 10,000.00 10,000.00 Library from the acceptance of the Assistance to Firefighters Grant (AFG) from the Federal Emergency Management Agency (FEMA). The AFG will offset the cost of installing vehicle exhaust extraction 011 9/7/2021 City Manager GENERAL FUND 4,500.00 4,500.00 Library systems in six of the department's fire stations. 008 9/14/2021 City Council OTS GRANT FUND 270,000.00 270,000.00 Police To increase revenue estimates and expenditure appropriations to accept the 2022 State of California, Office of Traffic Safety (OTS) Selective Traffic Enforcement Program (STEP) Grant (#PT22042) for increasing DUI Enforcement and Awareness and funding additional traffic safety enforcement, as well as DUI Sobriety Checkpoints. Funds will be used to pay for overtime costs specifically used for this program and related costs for travel and training. 009 8/24/2021 City Manager GENERAL FUND 10,000.00 10,000.00 Library To increase revenue estimates and expenditure appropriations from the Literacy Services Special Deposit Account. Funds will be allocated to the Literacy Programming part time salaries account. 010 8/25/2021 City Manager GENERAL FUND 10,000.00 10,000.00 Library To increase revenue estimates and expenditure appropriations to record a check received from Arts Orange County to supplement programming. 011 9/7/2021 City Manager GENERAL FUND 4,500.00 4,500.00 Library To increase revenue estimates and expenditure appropriations from the Literacy Services Special Deposit Account. Funds will be allocated to various Literacy Maintenance & Operating expense accounts. 012 9/28/2021 City Council GENERAL FUND 20,000.00 20,000.00 Library To increase revenue estimates and expenditure appropriations by accepting a check from the Newport Beach Arts Foundation to enhance the Cultural Arts Sculpture Garden. 013 9/28/2021 City Council GENERAL FUND - 25,380.00 (25,380.00) Police To increase expenditure appropriations from unappropriated General Fund fund balance to fund crossing guard services at new crossing guard locations. On-going funding will be provided in subsequent years budgets for these services. 24-15 City of Newport Beach Fiscal Year 2021-22 Budget Amendments Quarter Ending September 30, 2021 BA # Date Amendment Type Fund Revenues Expenditures Net Effect on Fund Balance Increase/(Decrease) Department Explanation 014 9/28/2021 City Council TIDE & SUBMERGED LANDS FUND - 17,500.00 (17,500.00) Harbor To increase revenue estimates and expenditure appropriations from the approval and acceptance of the State of California's CONTRIBUTIONS FUND 175,000.00 175,000.00 Division of Boating and Waterways SAVE Grant. The SAVE Grant requires a 10% match, which will come from the Tidelands fund balance. 015 9/28/2021 City Council GENERAL FUND - 376,101.00 (376,101.00) City Manager To increase revenue estimates and expenditure appropriations from the approval of a mobile crisis response team to assist COMM DEVL BLK GRANT FUND 717,079.00 717,079.00 residents and homeless individuals experiencing a mental health crisis related to COVID-19. 24-16