HomeMy WebLinkAbout10 - Fiscal Year 2021-22 Second Quarter Financial ReportQ �EwPpRT
CITY OF
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z NEWPORT BEACH
<,FORN'P City Council Staff Report
February 22, 2022
Agenda Item No. 10
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, Director/Treasurer, scatlett@newportbeachca.gov
PHONE: 949-644-3123
TITLE: Fiscal Year 2021-22 Second Quarter Financial Report
ABSTRACT -
The Finance Department prepares quarterly financial reports to review in detail the status
of revenues and expenditures for the City of Newport Beach (City) General Fund and to
identify any concerning budgetary trends in other City funds. This report contains
information on revenues, expenditures and estimated fund balance for the second quarter
of Fiscal Year 2021-22.
This second financial report of Fiscal Year 2021-22 provides an analysis of the financial
activity of the City from the months of July through December 2021. Based on information
available at the end of the second quarter, staff has made positive adjustments to
year-end projected revenues and preliminary expenditure savings have been identified
that should result in a healthy year-end budget surplus. Year-to-date expenditure budget
adjustments are fully offset by the additional projected 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. 22-040, transferring $31,764 from the General Fund
to the Information Technology Internal Service Fund; and
c) Receive and file the report of budget amendments for the second quarter.
DISCUSSION:
Economic Overview
Key economic indicators such as unemployment, taxable sales, and assessed property
values continue to improve, which is indicative of the recent robust improvement to the
economy. While recent trends in inflation have caused concern in the broader economy
and financial markets, the City is well-positioned to weather any short-term increase in
inflation thanks to the related increase in many of the City's revenues such as sales tax
and transient occupancy tax as prices increase.
10-1
Fiscal Year 2021-22 Second Quarter Financial Report
February 22, 2022
Page 2
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 strongest
recovery as "return to normal" consumer behavior spurs further growth in sales
associated with restaurants, hotels and general consumer goods purchased in brick -and -
mortar establishments.
General Fund Revenues
Overall General Fund revenue growth has outpaced projections generated by the City's
consultants and staff that were incorporated into the adopted Fiscal Year 2021-22 budget.
Growth in sales tax and transient occupancy tax has been the most pronounced, but
growth in many other areas has contributed to a significant projected increase in General
Fund revenues of $15.9 million versus the adopted budget. Of note, sales tax in the
categories hardest hit by the pandemic (brick -and -mortar businesses and restaurants and
hotels) has now surpassed the record high levels seen just prior to the pandemic's onset,
and transient occupancy tax is now projected to exceed the pre -pandemic high by
year-end.
The following table summarizes the changes to projected General Fund revenues versus
the adopted budget for Fiscal Year 2021-22. Details follow highlighting the reasons for
the material variances.
Fiscal Year 2021-22 Projected General Fund Revenues
Property Taxes $ 119,157,540 $ 122,229,980 $ 123,449,496 $ 1,219,516 1.0%
Sales Tax
38,956,275
40,275,670
43,062,546
2,786,876
6.9%
Transient Occupancy Tax
16,886,197
19,027,493
25,573,145
6,545,652
34.4%
Other Taxes
12,849,340
10,815,117
12,095,117
1,280,000
11.8%
Service Fees & Charges
18,264,952
19,046,329
20,010,449
964,120
5.1%
Parking Revenue
7,074,853
5,681,942
5,989,448
307,506
5.4%
Licenses and Permits
5,133,399
5,106,646
5,106,646
-
-
Property Income
5,115,255
5,044,403
5,922,927
878,524
17.4%
Fines & Penalties
4,012,568
3,292,102
3,379,886
87,784
2.7%
Intergovernmental
5,175,738
1,760,934
3,318,998
1,558,064
88.5%
Investment Earnings
1,598,624
1,112,200
1,112,200
-
-
Misc Revenues
1,359,034
734,148
1,008,151
274,003
37.3%
Total Revenues
$ 235,583,776
$ 234,126,964
$ 250,029,010 $
15,902,046
6.7%
Property Tax - Property taxes are the City's single largest General Fund revenue and
represent approximately 50% of all General Fund revenues. As these revenues are
primarily dependent on the assessed valuation established in January of 2021, there is
typically very little variance seen from the original budget as the year progresses. The
growth rate for Fiscal Year 2021-22 was smaller than what has been seen in recent years,
primarily due to the lower, 1.036% CPI factor.
10-2
Fiscal Year 2021-22 Second Quarter Financial Report
February 22, 2022
Page 3
For Fiscal Year 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 revenues and the most recent data shared by the City's
property tax consultant, staff has increased the property tax revenue estimate for Fiscal
Year 2021-22 by $1.2 million to $123.4 million.
Projections for Fiscal Year 2022-23 property tax revenues from the City's property tax
consultant reflect a 6.5% increase in assessed values in the year ahead. This strong
growth is a result of the CPI factor returning to the maximum 2.0% allowed and adding
$1.2 billion to the assessed valuation, as well as continued strong property sales activity
and price appreciation adding $2.8 billion to the assessed valuation. The City's total
assessed valuation for Fiscal Year 2022-23 is now projected to grow from $64.8 billion to
$69.0 billion.
Sales Tax - The second largest funding source for the General Fund is sales tax revenue,
making up more than 15% of General Fund revenues. The City's sales tax base is largely
generated from three industry categories — autos and transportation, general consumer
goods, and restaurants/hotels. Most of these industries are also heavily impacted by
tourism.
Because sales tax revenues are remitted to the City by the State of California several
months after they are paid by consumers, information on which to report is less complete
at the midpoint of the fiscal year than for other revenue sources. However, based on the
strong growth seen in recent quarters and the latest projections from the City's sales tax
consultant, staff has increased the sales tax revenue estimate for Fiscal Year 2021-22 by
$2.8 million to $43.1 million, an increase of 6.9%.
This increase results from two primary drivers. First, while auto sales have slowed due to
inventory shortages, price increases have more than offset this decline and have resulted
in strong growth in this sales tax revenue category of 8.3% on a quarter over prior year
quarter basis in the July to September quarter. Second, revenue from brick -and -mortar
retail establishments and restaurants and hotels has now surpassed the pre -pandemic
high as consumer behavior has largely returned to normal. These revenues grew at rates
of 44.1 % and 46.7%, respectively, versus the same prior year quarter. Also factoring into
the strong growth is revenue from fuel and service stations, with 49.8% growth versus the
same prior year quarter due to higher fuel prices and higher demand. Overall revenue
was up 15.8% versus the same prior year quarter, leading to a year-end projection of
10.5% growth for the full fiscal year versus the prior fiscal year.
The outlook for sales tax revenues remains positive despite supply chain, pricing and
labor concerns, and the City expects to see continued growth in the years ahead. Early
projections anticipate 5.3% growth for next fiscal year as the effects of the pandemic
recede and trends return to more normal behavior.
10-3
Fiscal Year 2021-22 Second Quarter Financial Report
February 22, 2022
Page 4
Transient Occupancy Tax (TOT) - The City has seen a steady rebound and comeback
for TOT revenues as the effects of the pandemic receded. Initially, the TOT budget for
the current fiscal year was developed in anticipation of full recovery of TOT revenues not
occurring until the end of Fiscal Year 2022-23. However, staff's revised projection based
on revenues received in the first half of the fiscal year now contemplates an increase in
the budgeted revenues of $6.5 million to $25.6 million, an increase of 34.4%.
Two factors are causing this significant increase in the projection. First, revenue from
short-term lodging businesses, which grew throughout the pandemic, is at a record high
level. Second, many hotel properties are reporting record high TOT receipts and have
been doing so for multiple consecutive months. While occupancy levels have not returned
to pre -pandemic levels, they are slowly increasing. This lag in occupancy levels has been
largely offset by higher daily room rates, resulting in hotel TOT revenues that are
projected to approach the pre -pandemic high this fiscal year. When taken together, the
strong growth in residential TOT makes up for the slightly lower hotel TOT projection and
the two in total are now projected to result in a record year for TOT revenues for the City.
The year-end projected revenues would exceed the prior year by 51.4% and the Fiscal
Year 2018-19 record by $876,000.
Data provided by Visit Newport Beach (VNB) illustrates these very positive trends:
485
,n $448.72
W
N
435 .... ...
x $378.82
w385 .................................................... $361.35
3
335 $30688 $291.00 $294.47 .............5312.29
$284.97
a....$319.90......
285 -- $301.32 $310.72
$2.86.71$285.37 $294.12 $288.82
235 $277.20 $279.37
6-NOV 13-NOV 20-NOV 27-NOV 4 -UEC 11 -DEC 18 -DEC 25 -DEC 1 -JAN
-@--THIS YEAR (LAST YEAR
$310.82
$321.23
$290.85
- $2fi4.5ff $253.99
8 -JAN 15 -JAN ZZ -JAN
100.0%
95.9%
79.8%
79.7%
75.5%
81.2%
81-8%
76.2%
78.7%
90. D%
69.19E
71.8%
71.6%
67.6%
67.3%
74.
62. %
61.7%
581X
59.8
°1 60.0%
69.6%
s2.6%
53.4%
3 r
39.5%
47.7%
r 40.036
21)AA
51.5%
= J
22.7%
44.2%
43.9%
45.2%
Z G 20.0'16
37.3%
38.2%
34.3X
Q ❑
3�.0%
27.6%
25.0%
�
OA%
13.5%
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
t20Z1
--a-20ZO
12019
SOURCE:lANUARY 26 2021, STR.COM: MONTHIYOATA THROUGH OECEMBER 101!
10-4
Fiscal Year 2021-22 Second Quarter Financial Report
February 22, 2022
Page 5
Notably, there does not appear to be a significant impact on occupancy or room rates due
to the recent Omicron variant surge in COVID-19 cases. This report was prepared based
on actual TOT revenue received through November due to the timing of receipt of TOT
revenues, which does not yet reflect any impact from the surge. While staff will evaluate
the actual revenue data once received and adjust accordingly, the data provided by VNB
does not suggest that a material impact on TOT revenues is likely.
While the Newport Beach Marriott Hotel & Spa remains under renovation, it is expected
to reopen as VEA Newport Beach before the end of the fiscal year with expanded meeting
space, higher room rates, and a full complement of rooms available that have not been
usable during the renovation process this past year. Staff has conservatively not included
an impact in the TOT revenue projection from the changes to the hotel, which should
result in a positive variance beyond the current projection once the hotel is fully open.
The Fashion Island Hotel remains closed, but is expected to reopen, hopefully in the fiscal
year ahead, following a sale and renovation. Similarly, because the timing is uncertain,
staff has not included any revenue from the Fashion Island Hotel in the projection. These
reopening's, combined with the expected return of more business travelers, are
anticipated to have additional positive impact on the City's TOT revenues.
The outlook for TOT revenues continues to exceed expectations, and the reopening of
the Marriott and Fashion Island hotels with significant renovations and higher room rates
presents further opportunity for growth. Early projections anticipate 8.7% growth in the
fiscal year ahead as the effects of the pandemic recede and trends return to more normal
behavior.
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 of Orange for vehicle code
violations, and false alarm penalties.
10-5
Fiscal Year 2021-22 Second Quarter Financial Report
February 22, 2022
Page 6
• Intergovernmental Revenues — federal, state, and local grant revenues, which
includes, but are not limited to, the City's portion of the 1/2 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.
Growth in other revenues as a whole is projected to be $5.4 million above the adopted
budget or 10.2%. Primary drivers of this growth include:
• Service fees and charges revenues are projected to exceed the adopted budget
by $1.0 million primarily due to increased revenue received from recreation
fee-based classes and the Junior Lifeguard program as discussed in more detail
in the prior quarter's financial report.
• Property income revenues are projected to exceed the adopted budget by
$0.9 million, primarily due to increased percentage -based rent revenues from the
Lido House Hotel lease due to the hotel's increased revenues.
• Intergovernmental revenues are projected to exceed the adopted budget by
$1.6 million, primarily due to adjustments related to mutual aid reimbursements
and SB -2 Permanent Local Housing Allocation grant funds, as discussed in the
prior quarter's financial report in more detail.
• Property transfer tax revenues are projected to exceed the adopted budget by
$1.3 million due to the strong sales activity discussed earlier in this report.
General Fund Expenditures
The Fiscal Year 2021-22 General Fund revised expenditure budget totals $238.3 million.
The year-to-date spending trends in the current fiscal year are generally consistent with
prior years and do not indicate any cause for concern. Existing appropriations are on
target to fund all current operational expenditures and staff is currently projecting sizable
year-end budget savings comparable to what has been generated in prior fiscal years.
The following table summarizes the year-to-date changes to the adopted expenditure
budget for Fiscal Year 2021-22, as well as projected expenditure savings by budget
category. Details follow highlighting the reasons for the material variances. As the fiscal
year is only 50% complete, budget savings as currently projected will be revised upward
or downward as the year progresses based on new information. Based on trends seen in
prior years, additional budget savings are anticipated to materialize as the fiscal year
progresses.
10-6
Fiscal Year 2021-22 Second Quarter Financial Report
February 22, 2022
Page 7
Fiscal Year 2021-22 Projected General Fund Expenditures
Salary & Benefits
$ 151,713,101
$ 158,896,146
$ 156,492,417 $
2,403,728
-1.5%
Contract Services
24,702,901
27,232,515
25,077,927
2,154,588
-7.9%
Grant Operating
600,000
926,490
926,490
-
-
Utilities
3,011,315
3,248,516
3,806,096
(557,580)
17.2%
Supplies & Materials
3,739,730
4,397,470
4,305,408
92,061
-2.1%
Maintenance & Repair
12,640,923
13,497,005
13,464,754
32,251
-0.2%
Travel & Training
814,868
833,079
576,126
256,953
-30.8%
General Expenses
2,130,552
2,304,168
2,304,168
-
Internal Svc Charge
25,078,890
25,093,732
25,093,732
Risk Management
750,915
750,915
750,915
Capital Expenditures
780,438
1,145,810
1,145,810
-
Total Expenditures
$ 225,963,632
$ 238,325,844
$ 233,943,843 $
4,382,001
-1.8%
Significant expenditure budget variances are as follows:
• The revised salary and benefits budget totals $158.9 million, an increase of
$7.2 million. The increase is primarily due to the appropriation of $5.0 million from
the Fiscal Year 2020-21 year-end budget surplus as an additional discretionary
payment to CalPERS to further reduce the City's unfunded pension liability. The
remaining $2.2 million relates to recently approved contracts with the majority of
the City's employee associations. The City does not budget for unknown labor
costs, which therefore requires mid -year appropriations for negotiated salary and
benefit increases in the year in which new labor contracts are negotiated. While
the budget for the current year did include a $2.0 million vacancy factor, additional
salary and benefit savings beyond the vacancy factor of $2.4 million are currently
projected.
• Increases to the contract services budget relate to a variety of routine mid -year
adjustments previously approved by the City Council, including $0.6 million added
to the contract instructors' budget for Recreation and Senior Services that is fully
offset by higher revenues, $0.4 million for the Be Well OC program, $0.3 million
for the Medical IGT Program that is fully offset by higher revenues, and
appropriations for several donations. Based on staff's most recent budget
meetings with City departments, contract services savings of $2.2 million are
currently projected.
• Staff has identified an issue with the City's recent budgeting for utilities. A portion
of this issue was addressed with a budget amendment approved by the City
Council in the first quarter. However, additional overages are now apparent. Staff
is evaluating this issue and will be making adjustments in the Fiscal Year 2022-23
budget to address it. As budget savings in other expenditure categories are
anticipated to fully offset the projected $0.6 million overage, staff is not
recommending a further adjustment to the utilities budget at this time.
As the year is only 50% complete, savings projections are subject to revision as the year
progresses.
10-7
Fiscal Year 2021-22 Second Quarter Financial Report
February 22, 2022
Page 8
Staff is also requesting approval of a budget amendment authorizing a transfer of
expenditure appropriations from the General Fund to the Information Technology Internal
Service Fund in the amount of $31,764, which cannot be approved administratively due
to the movement between two funds. This is a routine request consolidating funding
related to a previously approved new phone system for the City's lifeguard towers.
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 Fiscal Year 2022-23
budget process.
3. CIP and Neighborhood Enhancements — $15.5 million toward the Fiscal Year
2022-23 capital improvement program, to include neighborhood enhancement
projects. Funds were set aside with specific allocations being recommended as
part of the upcoming Fiscal Year 2022-23 budget process.
Other than the previously discussed appropriation toward the City's CalPERS unfunded
liability, the remainder of these appropriations are reflected in the budget as transfers out
of the General Fund.
General Fund Sources, Uses, and Projected Surplus
As a result of the strong revenue growth seen year-to-date and projected continued strong
revenue growth through the end of the fiscal year, a budget surplus is anticipated based
on the additional revenues alone. Projected expenditure savings, which based on prior
year trends will likely exceed what is currently projected, will add to that surplus. While
this is all good news, the year is only 50% complete and staff remains cautious. Staff will
continue to revise these projections as the year progresses, with an update to be provided
to the Finance Committee and City Council following the conclusion of the third quarter
of the fiscal year.
The table on the following page illustrates the prior year sources and uses of funds as
compared to the adopted budget, the revised budget, and the projected year-end results.
10-8
Fiscal Year 2021-22 Second Quarter Financial Report
February 22, 2022
Page 9
Fiscal Year 2021-22 Projected General Sources, Uses, and Budget Surplus
BEGINNING UNRESTRICTED FUND BALANCE $ 24,081,225 $ 31,036,884 $ 31,036,884 $ 31,036,884 $ - 0.0%
SOURCES:
Operating Revenues
235,583,776
234,126,964
250,029,010
250,029,010 15,902,046
6.8%
Less: Restricted Revenues
(958,152)
(1,128,513)
(1,128,513)
(1,128,513) -
0.0%
Prior Year Resources Carried Forward
2,075,632
-
3,072,666
3,072,666 3,072,666
---
Release of Restricted Funds
2,392,197
1,220,000
1,220,000
1,220,000 -
0.0%
Transfers In from Other Funds
21,804,961
11,977,157
11,977,157
11,977,157 -
0.0%
TOTAL SOURCES
260,898,414
246,195,608
265,170,320
265,170,320 18,974,712
7.7%
USES:
Operating Expenditures
220,705,249
225,963,632
238,325,844
233,943,843
7,980,211
3.5%
Transfers Out
27,467,575
20,200,000
47,030,300
47,030,300
26,830,300
132.8%
Resources Carried Forward to FY 2021-22
3,072,666
-
-
-
-
---
Addition to 25% Contingency Reserve
2,697,265
-
-
-
-
---
TOTAL USES
253,942,755
246,163,632
285,356,144
280,974,143
34,810,511
14.1%
ENDING UNRESTRICTED FUND BALANCE
$ 31,036,884
$ 31,068,860
$ 10,851,060
$ 15,233,061
$ (15,835,799)
-51.0%
CHANGE IN FUND BALANCE
$ 6,955,659
$ 31,976
$ (20,185,824)
$ (15,803,823)
$ (15,835,799)
As can be seen in the table above, even with the sizable appropriations earlier this year
that allocated three prior years' budget surpluses, current projections now reflect a
$15.2 million budget surplus for the current fiscal year. As discussed earlier this year, it
is quite possible that additional budget savings will be identified in the second half of the
year that may increase the surplus. However, it should again be noted that the City's
financial situation can change based on economic forces outside of its control. Prudence
is therefore advisable until the year is complete, and the actual budget surplus is
calculated.
Other Funds
Staff have evaluated the fiscal condition of the City's other major operating funds
(Tidelands, Water, and Wastewater). An analysis of the budget performance for these
funds through the second 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
Included in 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.
Conclusion
As a result of conservative budgeting and sound financial policies, the City remains well
positioned to continue delivering a high level of service to the community, while targeting
surplus resources to key priorities at year-end as has been the case for a number of
consecutive years.
10-9
Fiscal Year 2021-22 Second Quarter Financial Report
February 22, 2022
Page 10
FISCAL IMPACT:
If the Budget Amendment (Attachment A) is approved, an appropriation of $31,764 will
be transferred between the General Fund and the Information Technology Internal
Service Fund.
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.
z[9)t1INIkiLes
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. 22-040
Attachment B — Budget Amendments for the Second Quarter
10-10
ATTACHMENT A
Budget Amendment No. 22-040
10-11
� �EVYPORT
City of Newport Beach
ut s
>� BUDGET AMENDMENT
.,tip it 2021-22 BA#: 22-040
Department: Finance
Requestor: Scott Catlett
❑ CITY MANAGER'S APPROVAL ONLY
ONETIME: ❑� Yes ❑ No
Approvals
(Finance Director: ) Date Lho w
0 COUNCIL APPROVAL REQUIRED ICitY Clerk:
Date
EXPLANATION FOR REQUEST:
To increase appropriations relating to the fiscal year 2021-22 quarter two staff report. ❑ from existing budget appropriations
❑ from additional estimated revenues
❑� from unappropriated fund balance 7
REVENUES
Fund #
Org
Object
Project Description
Increase or (Decrease) $
Subtotal -
EXPENDITURES
Fund #
Org
Object
Project Description
Increase or (Decrease) $
010
01040406
831002
LIFEGUARD OPERATIONS - UTILITIES TELEPHONE
(29,348.00)
010
01040405
811008
JUNIOR LIFEGUARDS - SERVICES PROFESSIONAL
(2,416.00)
764
76420203
831001
CITY MGR INFORMTN TECHNOLOGY - TELECOMM
DATALINE 31,764.00
Subtotal; $ ----- - --
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
010
300000
GENERAL FUND
- FUND BALANCE CONTROL
31,764.00
764
300000
IT ISF - FUND BALANCE
CONTROL
(31,764.00)
Subtotal) $
No Change In Fund Balance
10-12
ATTACHMENT B
Budget Amendments for the Second Quarter
10-13
City of Newport Beach
Fiscal Year 2021-22 Budget Amendments
Quarter Ending December 31, 2021
Net Effect on Fund Balance
BA # Date Amendment Type Fund Revenues Expenditures Increase/(Decrease) Department Explanation
005 11/16/2021 City Council GENERAL FUND 3,613,276.13 1,155,507.64 2,457,768.49 Finance To increase revenue estimates and expenditure appropriations
016 10/12/2021 City Council TIDE & SUBMERGED LANDS FUND - 350,000.00 (350,000.00) Public Works To increase expenditure appropriations from unappropriated
Tidelands Maintenance fund balance to fund the Beach and Bay
Sand Management CIP Account to allow for the remaining known
017 10/12/2021 City Council
ASSESSMENT DIST #120
37,500.00 37,500.00
Public Works
To increase expenditure appropriations in Assessment District
#120 with an advance from General Fund unappropriated fund
019
10/26/2021
City Council
balance to have the assessment engineer prepare a new
10,500,000.00
Library
10,500,000.00
Engineer's Report and to circulate ballots for property owners votes
........................................................................................................................................................................................................................................................................................................................................................................................................
........................................................................................................................................................................................................................................................................................................................................................................................................
on the revised assessments.
GENERAL FUND
37,500.00
(37,500.00)
018 11/16/2021 City Council GENERAL FUND
77,310.37
(77,310.37)
Human Resources To increase salaries and benefit expenditure appropriations from
various Library Literacy Services accounts.
GENERAL FUND CAPITAL PROJECTS
15,500,000.00
General Fund, Water, and Information Technology unappropriated
........................................................................................................................................................................................................................................................................................................................................................................................................
- 2,000.00
and neighborhood enhancement projects.
fund balance to provide funding levels commesurate with the new
TIDE & SUBMERGED LANDS FUND
663.15
(663.15)
Memorandum of Understanding with the City Employee's
31,000,000.00
(31,000,000.00)
department print services other vendor to harbor department office
Association (CEA) and Profession Technology Association (Prof-
........................................................................................................................................................................................................................................................................................................................................................................................................
WATER ENTERPRISE FUND
1,030.49
(1,030.49)
Tech). The budget amendment provides the additional funding for
215,000.00
(215,000.00)
the first 13 pay periods of the contract (January 1, 2022 - June
........................................................................................................................................................................................................................................................................................................................................................................................................
CONTRIBUTIONS FUND
1,042,000.00 1,042,000.00
30,2022). Future fiscal year budgets will be developed to include
IT ISF
7,097.83
(7,097.83)
the full cost increases associated with the contract.
019
10/26/2021
City Council
FACILITIES FINANCING PLAN
10,500,000.00
Library
10,500,000.00
Finance
To allocate unrestricted General Fund resources toward CalPERS
........................................................................................................................................................................................................................................................................................................................................................................................................
from the California Literacy Campaign. Funds will be allocated to
unfunded liability,Facilities Financial Plan infrastructure liabilities
various Library Literacy Services accounts.
GENERAL FUND CAPITAL PROJECTS
15,500,000.00
City Manager
15,500,000.00
- 2,000.00
and neighborhood enhancement projects.
........................................................................................................................................................................................................................................................................................................................................................................................................
GENERAL FUND
31,000,000.00
(31,000,000.00)
department print services other vendor to harbor department office
020
10/26/2021
City Council
GENERAL FUND
215,000.00
(215,000.00)
City Clerk
To increase expenditure appropriations to cover the cost of the
CONTRIBUTIONS FUND
1,042,000.00 1,042,000.00
Public Works
To increase expenditure and revenue appropriations to fund the
Special Election which proposes a Charter Amendment to provide
contingency for contract 7833-1. Fees collected from utility
for the direct election of the Mayor of the City of Newport Beach.
021
11/18/2021
City Council
GENERAL FUND
579,129.00
310,177.00
268,952.00
Fire
To increase revenue estimates and expenditure appropriations
contingency.
029
11/30/2021
City Council
related to the Medi -Cal Intergovernmental Transfer (IGT) Program.
- 50,000.00
(50,000.00) City Manager
To increase expenditure appropriations to City Council's
Federal funds received are used to offset previously unreimbursed
professional services budget. Appropriations will be used to retain
a government relations consultant to represent the City of Newport
costs for providing Medi -Cal plan members emergency medical
Beach on matters related to group residential uses. 10-14
and transport services.
022
11/16/2021
City Council
TIDE & SUBMERGED LANDS FUND
140,000.00
(140,000.00)
Public Works
To appropriate $140,000 from Tidelands Capital Fund
unappropriated fund balance to Tidelands Maintenance Fund.
023
10/20/2021
City Manager
TIDELANDS HARBOR CAP FUND
3,611.75
(3,611.75)
Public Works
To increase expenditure appropriations from Tidelands
unappropriated fund balance to cover the final payment and
reimbursement request on the current SAVE grant.
024
11/01/2021
City Manager
GENERAL FUND
75,000.00
Public Works
To transfer existing expenditure appropriations from fire operation
expense accounts to fire operations equipment account to pay for
the purchase and installation of a plymovment system for Project
15F13 - Fire Station.
025
11/09/2021
City Manager
GENERAL FUND
1,600.00
1,600.00
Library
To increase revenue estimates and expenditure appropriations
from the Literacy Services Special Deposit Account. Funds will be
allocated to various Literacv Services accounts.
026
12/14/2021
City Council
GENERAL FUND
40,292.00 40,292.00
Library
To increase revenue estimates and expenditure appropriations
from the California Literacy Campaign. Funds will be allocated to
various Library Literacy Services accounts.
027
11/10/2021
City Manager
TIDE & SUBMERGED LANDS FUND
- 2,000.00
Harbor
To transfer existing expenditure appropriations from harbor
department print services other vendor to harbor department office
furniture/fixtures.
028
11/16/2021
City Manager
CONTRIBUTIONS FUND
1,042,000.00 1,042,000.00
Public Works
To increase expenditure and revenue appropriations to fund the
contingency for contract 7833-1. Fees collected from utility
companies offset the increase in project cost. The City Manager
signed the memo dated October 14, 2021 approving the
contingency.
029
11/30/2021
City Council
GENERAL FUND
- 50,000.00
(50,000.00) City Manager
To increase expenditure appropriations to City Council's
professional services budget. Appropriations will be used to retain
a government relations consultant to represent the City of Newport
Beach on matters related to group residential uses. 10-14
City of Newport Beach
Fiscal Year 2021-22 Budget Amendments
Quarter Ending December 31, 2021
Net Effect on Fund Balance
BA # Date Amendment Type Fund Revenues Expenditures Increase/(Decrease) Department Explanation
030 12/14/2021 City Council GENERAL FUND - 469,638.00 (469,638.00) Human Resources To increase salary & benefit appropriations to fund the new MOU
031 12/14/2021 City Council GENERAL FUND
- 891,724.11 (891,724.11) Human Resources To increase salary & benefit appropriations to fund the new MOU
with Newport Beach Police Association (NBPA).
032 12/06/2021 City Manager GENERAL FUND
2,337.00 2,337.00 Library To increase revenue estimates and expenditure appropriations to
record a check received from Santiago Library System to augment
the current collection.
033 12/15/2021 City Manager GENERAL FUND
7,272.72 7,272.72 Fire To increase revenue and expenditure budgets to reflect the
donation from ABC7 and contribution to various charities as
participation in the Spark of Love event.
10-15