HomeMy WebLinkAbout05/24/2022 - Special MeetingCITY OF NEWPORT BEACH
City Council Minutes
Special Joint Meeting with the Finance Committee
May 24, 2022
I. CALL MEETING TO ORDER - 4:00 p.m.
II. ROLL CALL
Present: Mayor Pro Tem Noah Blom, Council Member Brad Avery, Council Member Joy Brenner,
Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill,
Finance Committee Member William Collopy, Finance Committee Member John Reed,
Finance Committee Member Nancy Scarbrough
Absent: Mayor Kevin Muldoon (excused) and Finance Committee Member Joseph Stapleton (excused)
III. PRESENTATIONS
• Recognition of Retired Library Services Director Tim Hetherton
Mayor Pro Tem Blom highlighted Tim Hetherton's 23-year career with the City and presented him
with a plaque and retirement pin.
Mr. Hetherton expressed his gratitude to the City Council, his colleagues, and his wife, Jennifer, for
supporting him through the greatest professional honor of his life.
Council Member Brenner thanked Mr. Hetherton for his patience during the Corona del Mar fire
station and library design process.
• Proclamation Honoring the Newport Harbor High School Boys and Girls Water Polo CIF,
State and National Champions
Mayor Pro Tem Blom read the proclamations and presented them to Coach Ross Sinclair who thanked
the City Council for honoring the teams and expressed his pride for both teams' accomplishments.
• Mental Health Awareness Month Proclamation
Mayor Pro Tem Blom read the proclamation and presented it to Mara James, founder of The
Extraordinary Lives Foundation, who thanked the City Council, introduced Piggie Bear, and
explained the foundation's mission.
IV. CURRENT BUSINESS
1. Review of the Proposed Fiscal Year 2022-23 Operating Budget [100-2020]
Finance Director Catlett and Senior Budget Analyst Burguan utilized a presentation to summarize
the principles guiding the budget development, opportunities for public review of the budget,
highlights of the Fiscal Year (FY) 2021-22 third quarter budget update, budget overview summary of
all funds, expenditures, historical budget trend with the prior years' Tidelands Fund expenditures
restated to the current presentation format, operating expenditures trend for all funds, expenditures
by fund, major fund operating expenditures, and CIP investment in infrastructure and facilities.
Furthermore, the presentation reviewed the General Fund (GF) revenue summary, historical GF
revenues, and three revenue sources, projections, and growth history: property tax, sales tax, and
Transient Occupancy Tax (TOT). Additionally, the presentation reviewed the GF expenditures and
operating expenditures trend, efforts to enhance budgeting accuracy, reasons for the 8.1% budget
growth, adjusted unfunded liability paydown strategy, long-term pension liability reduction
projections, GF expenditures by department, and GF transfers. Lastly, the presentation summarized
GF reserves and surplus, GF sources and uses, key GF program enhancements, proposed realignment
of part-time to full-time staff and additional staffing, a five-year staffing plan, recommended
enhancements, and a recap of key messages.
Volume 65 - Page 313
City of Newport Beach
Special Joint Meeting with the Finance Committee
May 24, 2022
In response to Council Member Dixon's question regarding Unfunded Accrued Liability (UAL)
protection, Finance Director Catlett clarified that the presentation reflected numbers released by
Ca1PERS up to June 30, 2021, noted challenges related to loss predictions, highlighted the six to ten
year projection, market activity variables, and diverse Ca1PERS investments to reduce losses, and
clarified the City Attorney's budget relocation.
Council Member O'Neill noted the difference in the budget over recent years, thanked Finance
Committee members, the City Manager, the Finance Director, and the Finance Department, proposed
a conservative approach moving forward and strategies for the current budget surplus, and
acknowledged the 100% return of services and money saved.
Council Member Avery concurred with Council Member O'Neill, discussed changes in the budget over
time and in staff and public service areas within the budget.
In response to Council Member Dixon's question, Finance Director Catlett indicated that the City has
planned the budget for a return to full staffing levels. Council Member Dixon thanked staff and the
Finance Committee for managing the City's financial resources.
Jim Mosher suggested a copy of the proposed budget be made available in the Central Library for
public review.
Mayor Pro Tem Blom thanked staff and the Finance Committee.
Council Member Duffield thanked the Finance Committee members.
V. PUBLIC COMMENTS
Nancy Gardner expressed her reasons for opposing Measure B.
Mayor Pro Tem Blom thanked members of the Finance Committee for attending the meeting.
VI. ADJOURNMENT - 5:01 p.m
The special meeting agenda was posted on the City's website and on the City Hall Electronic
Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive
on May 19, 2022, at 4:00 p.m.
Aid- pl��
Leilani I. Brown
City Clerk
Volume 65 - Page 314