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Home My WebLink About19 - Fiscal Year 2022-23 First Quarter Financial ReportSEW PpRr CITY OF z NEWPORT BEACH City Council Staff Report November 15, 2022 Agenda Item No. 19 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Michael Gomez, Acting Finance Director/Treasurer — 949-644-3124, mgomez@newportbeachca.gov PREPARED BY: Shelby Burguan, Budget Manager, sburguan@newportbeachca.gov PHONE: 949-644-3085 TITLE: Fiscal Year 2022-23 First 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 first quarter of Fiscal Year 2022-23. The first financial report of FY 2022-23 provides an analysis of the financial activity of the City from the months of July through September 2022. Based on information available at the end of the first quarter, positive revenue adjustments are expected and will be reflected in the proposed first quarter budget amendment. 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. 23-027, adjusting revenue estimates and expenditure appropriations for the Fiscal Year 2022-23 budget as further outlined in this report; and c) Receive and file the report of budget amendments for the first quarter. 19-1 Fiscal Year 2022-23 First Quarter Financial Report November 15, 2022 Page 2 DISCUSSION: Economic Overview Key economic indicators such as unemployment, taxable sales, and assessed property values continue to improve. 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 recent increases in many of the City's revenues, such as sales tax and transient occupancy tax, as prices increase. Additionally, long-term labor contracts with the City's employee associations have been negotiated and provide reasonable compensation increases that can be accommodated within projected revenue growth. 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 adopted. Overall General Fund revenue growth has outpaced the projections generated by the City's consultants and staff that were incorporated into the adopted Fiscal Year 2022-23 budget. Growth in 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 $3.2 million versus the adopted budget. Of note, sales tax in the categories hardest hit by the pandemic (brick -and -mortar businesses and restaurants & hotels) has now surpassed the record -high levels seen just prior to the pandemic's onset, and transient occupancy tax has now exceeded the pre -pandemic high. The following table summarizes the changes to projected General Fund revenues versus the adopted budget for FY 2022-23. Details follow highlighting the reasons for the material variances. Fiscal Year 2022-23 P d General Fund Revenues* Property Taxes 124,335,985 131,403,081 132,290,053 886,972 1% Sales Tax 46,164,860 46,526,493 46,526,493 - 0% Transient Occupancy Tax 26,677,331 27,788,728 28,908,841 1,120,113 4% Other Taxes 13,263,112 12,174,567 12,174,567 - 0% Service Fees & Charges 22,870,701 22,005,339 22,654,447 649,108 3% Parking Revenue 7,213,646 5,681,942 5,681,942 - 0% Licenses and Permits 6,067,908 5,870,375 5,870,375 - 0% Property Income 6,818,121 6,416,226 6,416,226 - 0% Fines & Penalties 4,157,305 3,870,567 3,870,567 - 0% Intergovernmental 4,578,283 1,823,903 2,372,999 549,096 30% Investment Earnings (2,615,502) 1,300,000 1,300,000 - 0% Misc Revenues 2,027,802 169,280 169,280 - 0% Total Revenues 261,559,550 265,030,502 268,235,791 3,205,289 1% * Based on preliminary year-end close data available as of September 30, 2022 19-2 Fiscal Year 2022-23 First Quarter Financial Report November 15, 2022 Page 3 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 2022, there is typically very little variance seen from the original budget as the year progresses. Projections for FY 2022-23 property tax revenues from the City's property tax consultant reflect a 7.6% increase in assessed values in the year ahead. This strong growth is a result of the Consumer Price Index (CPI) factor returning to the maximum 2% allowed and adding $1.2 billion to the assessed valuation, as well as continued strong property sales activity and price appreciation adding $5 billion to the assessed valuation. The City's total assessed valuation for FY 2022-23 is now projected to grow from $66.2 billion to $71.2 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 heavily impacted by tourism and were impacted by the effects of the COVID-19 pandemic. The adopted budget for this revenue source was developed in conjunction with the City's sales tax consultant and remains the current projection at this time. Transient Occupancy Tax (TOT) - The City has seen a steady rebound and comeback for TOT revenues as the effects of the pandemic receded. The TOT budget for the current fiscal year was developed in anticipation of full recovery of TOT revenues. Revenue from short-term lodging businesses, which grew throughout the pandemic, is at a record -high level. Additionally, 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 room rates as shown in the following chart, provided by Visit Newport Beach. $444.09 407.58 $379.47 $369.90 $320.66 $323,93 $330,92 $341.95 �$397.40 $403.73� $338.97 $306.70 $296.71 $318 50 303.37 $311.15 $278.18 $287.16 $321.26 $338.41 $243.75 $255.16 307.53 $305.79 $297.41 $296.56 $298.99 $291 72 $266.20 $262.82 $274.49 $243.41 $240.86 JAN FEB MAR APR MAY JUN JUL AUG SEP -2020 -2021 -2022 OCT NOV DEC 19-3 Fiscal Year 2022-23 First Quarter Financial Report November 15, 2022 Page 4 VEA Newport Beach is now operational, with expanded meeting space, higher room rates, and a full complement of rooms available that had 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 FY 2022-23 projection. The Fashion Island Hotel remains closed, but is expected to reopen in Summer 2023 following a sale and renovation as the Pendry Newport Beach. Similarly, because the timing of the Pendry's opening is uncertain, staff has not included any revenue from the hotel in the projection for this fiscal year. 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 in the years ahead. An updated analysis of the City's TOT revenues shows an expected increase of $1.1 million, due largely to strong short term lodging business, which increases the current year projection to $28.9 million. Staff will continue to monitor TOT trends and will provide additional updates to the projections as necessary in future quarterly financial reports. 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 (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 under the Waste Disposal Agreement. • 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. 19-4 Fiscal Year 2022-23 First Quarter Financial Report November 15, 2022 Page 5 Service fees and charges revenues are projected to exceed the adopted budget by $600,000. This is primarily due to increased revenue received from recreation fee -based classes. An amendment is proposed to increase both revenues and expenditures associated with fee -based classes. Intergovernmental revenues are projected to exceed the adopted budget by $550,000, primarily due to adjustments related to Fire Department mutual aid reimbursements and SB-2 Permanent Local Housing Allocation grant funds. General Fund Expenditures The FY 2022-23 General Fund revised expenditure budget totals $255.7 million. Spending trends in FY 2022-23 are generally consistent with prior years and do not indicate any cause for concern. Total expenditure savings of $330,000 are projected at this time due to year-to-date savings from vacancies, offset by expense overages that are addressed in Budget Amendment No. 23-027 (Attachment A), and are explained in detail below. The table below summarizes the changes to the adopted expenditure budget for FY 2022-23, as well as expenditure savings by budget category. Details follow highlighting the reasons for the material variances. Salary & Benefits $ 163,463,320 $169,670,545 $ 168,664,236 $ 1,006,308 0.6% Contract Services 26,873,734 29,498,100 30,092,600 (594,500) -2.0% Grant Operating 548,485 552,485 552,485 0.0% Utilities 3,837,745 3,837,745 3,837,745 0.0% Supplies & Materials 3,902,350 4,676,788 4,676,788 0.0% Maintenance & Repair 13,282,330 14,445,304 14,445,304 0.0% Travel &Training 833,758 843,049 843,049 0.0% General Expenses 2,178,896 2,279,465 2,279,465 0.0% Internal Svc Charge 28,190,206 28,190,206 28,190,206 0.0% Risk Management 255,915 255,915 255,915 0.0% Capital Expenditures 1,153,666 1,409,470 1,491,970 (82,500) -5.9% Total Expenditures $ 244,520,405 $ 255,659,072 $ 255,329,763 $ 329,308 0.1% " Based on preliminary year-end close data available as of September 30, 2022 Significant expenditure budget variances are as follows: • The revised salary and benefits budget totals $169.7 million, an increase of $6.2 million over the adopted budget. The increase is primarily due to the appropriation of $5 million from the FY 2022-23 structural budget surplus as an additional discretionary payment to CalPERS to further reduce the City's unfunded pension liability. The remaining $1.2 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 requires mid -year appropriations for negotiated salary and benefit increases in the year in which new labor contracts are negotiated. The current year to date projected savings of $1.0 million is from staff vacancies. 19-5 Fiscal Year 2022-23 First Quarter Financial Report November 15, 2022 Page 6 • The revised contract services budget totals $129.5 million, an increase of $2.6 million over the adopted budget. This increase is primarily due to contract carryovers from the prior fiscal year, that pull from prior year reserved fund balances and not current year revenues. During Fiscal Year 2020-21, the Recreation and Senior Services Department reduced its operational revenues and expenditure budgets in response to cancelled classes relating to the COVID-19 shutdowns. At the end of quarter one in FY 2021-22, staff increased expenditure appropriations due to the reinstatement of cancelled classes; however, these increases were still below the pre -pandemic budget levels. Staff is seeking an amendment of $594,000 to fully restore contract instructor budgets. As noted in the General Fund Revenues section, this amount is fully offset by additional class fee revenue. • Two new vehicle purchases that were approved as program enhancements were erroneously not included in the adopted budget. Staff seeks a budget amendment to fund the purchases of these vehicles for the Fire and Utilities Departments. General Fund Sources, Uses, and Projected Surplus The City continues to be in excellent financial health. Conservative budgeting and sound financial policies have resulted in a trend of General Fund operating surpluses and strong reserve levels for several years. 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 $1.8 million at the end of FY 2022-23. 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. Fiscal Year 2022-23 P lus BEGINNING UNRESTRICTED FUND BALANCE $ 31,178,957 $ 24,093,441 $ 24,093,441 $ 0.0% SOURCES: Operating Revenues 261,557,218 265,030,502 268,235,791 3,205,289 1.2% Less: Restricted Revenues (746,728) - - - 0.0% Prior Year Resources Carried Forward 3,072,666 4,429,573 4,429,573 --- Release of Restricted Funds 6,476,034 - - - 0.0% Transfers In from Other Funds 11,356,595 18,550,724 18,550,724 - 0.0% TOTAL SOURCES 281,715,785 283,581,226 291,216,088 7,634,862 2.7% USES: Operating Expenditures 228,023,008 244,520,405 255,329,763 10,809,359 4.4% Transfers Out 52,813,549 31,597,269 58,140,710 26,543,441 84.0% Resources Carried Forward to Next Fiscal Year 4,429,573 - - - --- Addition to 25% Contingency Reserve 3,535,171 - - - --- TOTAL USES 288,801,301 276,117,674 313,470,474 37,352,800 13.5% ENDING UNRESTRICTED FUND BALANCE $ 24,093,441 $ 31,556,994 $ 1,839,055 $ (29,717,938) -94.2% 19-6 Fiscal Year 2022-23 First Quarter Financial Report November 15, 2022 Page 7 As can be seen in the table above, even with the appropriation of last year's budget surplus of $24.1 million for the purchase of the Dove Street property, current projections reflect a $1.8 million budget surplus for this fiscal year. Other Funds Staff has 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 indicates that no budget adjustments are necessary and variances between budgeted and actual amounts are within reason. Contributions Fund Several Capital Improvement Plan (CIP) projects in the contributions fund have received additional revenues for portions of existing projects. These revenues fully offset additional expenses but require budget amendments that are included in BA 23-027. • Peninsula Encroachment Removal Project (22M14) — property owners were notified they could either pay the City $7,500 for the removal of their hardscape encroachments or remove the encroachments themselves. Three property owners entered into agreements for the City to remove their encroachments. • East Coast Highway Pavement Rehabilitation (21 R12) — Laguna Beach Water District and Orange County Sanitation District are contributing to the project for work the City did as part of the construction contract that would have been the responsibility of those agencies. • Additional unforeseen work was required on the Jamboree Road Pavement Rehabilitation project (21 R15) that is the responsibility of Orange County Water District (OCWD). The City will bill OCWD for the cost of the additional work. • Von Karman Avenue Pavement Rehabilitation (23R15) — The Coronavirus Response and Relief Supplement Appropriations Act of 2021 provided funding through the Department of Transportation with Orange County Transportation Authority distributing the funds. The expenditure is budgeted through the Capital Improvement Program budget. The budget amendment will add the anticipated revenue into the budget, so the contributions fund is balanced. American Rescue Plan Act Fund The City received funding from the American Rescue Plan Act (ARPA), through the California State Water Resources Control Board to reimburse the City for delinquent sewer bills that were unpaid during the COVID-19 pandemic bill relief period. The City received approximately $50,000 for this wastewater arrearage program, and a budget amendment is needed to appropriate the revenues and expenses within the ARPA fund. 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 to enhance transparency. 19-7 Fiscal Year 2022-23 First Quarter Financial Report November 15, 2022 Page 8 FISCAL IMPACT: As a result of approval of the Budget Amendment (Attachment A) included with this report, revenue estimates will be adjusted upward by $1,082,077 and $857,882 will be appropriated to the expenditure accounts listed in the Budget Amendment. Approval of these budget amendments is included in the projected FY 2022-23 column of the General Fund Sources & Uses table (shown on page 6 of this report). 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. 23-027 Attachment B — Budget Amendments for the First Quarter 19-8 Attachment A Budget Amendment No. 23-027 19-9 SEW PART o @� City of Newport Beach i3 BUDGET AMENDMENT 'Fors'" 2022-23 BA#: 23-027 Department: Finance ONETIME: Q Yes ❑ No Requestor: Michael Gomez Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: - Date F] COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: To appropriate revenues and expenses related to the Recreation department's fee based classes, to appropriate revenues ❑ from existing budget appropriations and expenses in the Contributions Fund for CIP Projects, and to appropriate revenues and expenses for the ARPA ❑� from additional estimated revenues Wastewater arrearage program. ❑ from unappropriated fund balance REVENUES Fund # Org Object Project Description Increase or (Decrease) $ 010 0107011 521425 FEE BASED CLASSES - FEE BASED CLASSES 150,000.00 010 0107012 521435 ADULT SPORTS - RACKET SPORTS 41,700.00 010 0107013 521485 YOUTH SPORTS - YOUTH SPORTS 15,000.00 010 0107014 521410 YOUTH PROGRAMS -YOUTH DAY CAMPS 27,500.00 010 0107019 521405 AQUATICS - AQUATICS PROGRAMS 29,000.00 010 0107022 551215 CIVIC CENTER RENTALS - CIVIC CNTR COMM ROOM FEES 31,300.00 010 0107023 521455 MARINA PARK - SURFING CLASSES 247,600.00 010 0107023 551165 MARINA PARK - FACILITY RENTAL FEES 30,300.00 010 0107024 551170 FACILITY MAINT & OPERATIONS - YSC FIELD FEES 47,800.00 010 0107033 431145 OASIS TRANSPORTATION - MEASURE M2 FAIR SHARE 28,900.00 135 13501 561005 22M14 CONTRIBUTIONS FUND CIP - PRVT DONATION/CONTRIBUTNS 22,500.00 135 13501 431505 21R12 CONTRIBUTIONS FUND CIP - LBCWD REIMBURSEMENT 10,980.00 135 13501 431075 21R12 CONTRIBUTIONS FUND CIP - OC SANITATION DST CONTRIB 14,700.00 135 13501 431222 211115 CONTRIBUTIONS FUND CIP - OC WATER DISTRICT CONTRIB 82,693.31 135 13501 431550 23R15 CONTRIBUTIONS FUND CIP - CRRSAA 252,095.00 166 16620 431542 G2260 ARPA - AMERICAN RESCUE PLAN ACT SEWER 50,008.59 Subtota l[L_ 1,082,076.90 EXPENDITURES Fund # Org Object Project Description Increase or (Decrease) $ 010 0107011 811036 FEE BASED CLASSES - CONTRACT RSS INSTRUCTORS 93,500.00 010 0107012 811050 ADULT SPORTS- TENNIS CONTRACT INSTRUCTORS 38,000.00 010 0107021 811036 COMMUNITY YOUTH CENTER - CONTRACT RSS INSTRUCTORS 12,000.00 010 0107023 811036 MARINA PARK - CONTRACT RSS INSTRUCTORS 5,500.00 010 0107023 811046 MARINA PARK - TIDELANDS INSTRUCT PYMTS 155,000.00 010 0107023 811051 MARINA PARK - SURF CONTRACT INSTRUCTORS 265,000.00 010 0107031 811036 OASIS - CONTRACT RSS INSTRUCTORS 25,500.00 010 0109062 911016 STORM DRAINS/STREET SWEEPING - ROLLING EQUIPMENT 32,500.00 010 01040401 911016 FIRE OPERATIONS - ROLLING EQUIPMENT 50,000.00 135 13501 980000 22M14 CONTRIBUTIONS FUND CIP - CIP EXPENDITURES FOR GL 22,500.00 135 13501 980000 21R12 CONTRIBUTIONS FUND CIP - CIP EXPENDITURES FOR GL 10,980.00 135 13501 980000 211312 CONTRIBUTIONS FUND CIP - CIP EXPENDITURES FOR GL 14,700.00 135 13501 980000 21R15 CONTRIBUTIONS FUND CIP - CIP EXPENDITURES FOR GL 82,693.31 166 16620 821004 G2260 ARPA - GRANT EXPENSES 50,008.59 Subtotal $ 857,881.90 FUND BALANCE Fund # Object Description Increase or (Decrease) $ 010 300000 GENERAL FUND - FUND BALANCE CONTROL (27,900.00) 135 300000 CONTRIBUTIONS FUND - FUND BALANCE CONTROL 252,095.00 166 300000 AMERICAN RESCUE PLAN ACT - FUND BALANCE CONTROL - SubtotalL$ 224,195.00 Fund Balance Change Require; 19-10 Attachment B Budget Amendments for First Quarter 19-11 City of Newport Beach Fiscal Year 2022.23 Budget Amendments Quarter Ending September 30, 2022 Net Effect on Fund Balance BA# Date Amendment Type Fund Revenues Expenditures Increase/(Decrease) Department Explanation 001 06/14/2022 City Council GENERAL FUND 7,500,000.00 7,450,000.00 Various To transfer structural surplus revenue to increase expenditure appropriations. Funds will be allocated to CalPERS UAL Additional payment for FY 22-23, Facilities Financing Plan and FY 2023-24 002 06/14/2022 City Council GENERAL FUND - 41,532.75 (41,532.75) Human Resources To increase salary & benefit appropriations to fund the new MOU with Newport Beach Fire Management Association (NBFMA). 003 06/14/2022 City Council GENERAL FUND 122,038.00 122,038.00 Public Works To increase budget appropriations to cover contractual obligations such as sewer root control services for FY 22-23 004 07/28/2022 City Council GENERAL FUND 35,000.00 (35,000.00) Public Works To increase budget appropriations to cover contractual obligations such as sewer root control services for FY 22-23 005 06/28/2022 City Council GENERAL FUND 177,877.00 (177,877.00) Police To increase salary and benefit appropriations to fund the new MOU with Newport Beach Police Management Association (NBPMA). 006 07/12/2022 City Council TIDELANDS HARBOR CAP FUND 46,801.00 (46,801.00) Public Works To increase expenditures for project 19D03 to install tidegates at three locations around the City 007 07/26/2022 City Manager WASTEWATER ENTERPRISE FUND - 10,000.00 (10,000.00) Utilities From the Wastewater Fund unappropriated Fund Balance to increase the FY22-23 appropriation to cover contractual obligations - Sewer Manhole Lining Services (Sancon) 008 07/26/2022 City Council WATER ENTERPRISE FUND 420,000.00 840,000.00 (420,000.00) Public Works To appropriate funds for the Water Transmission Main Valve Replacement (Phase 2) Project. 009 07/26/2022 City Council GENERAL FUND 467,629.56 467,629.56 CDD To increase revenue due to the City selling a small portion of City - owned property to the OC Sanitation District. 010 08/23/2022 City Council GENERAL FUND - 891,835.80 (891,835.80) Human Resources Appropriating funds to various salary and benefit accounts in order to fund an additional cost of living adjustment to labor groups' contracts. 011 08/23/2022 City Council GENERAL FUND - 61,212.00 61,212.00 Police To increase expenditure appropriations from the General Fund unappropriated fund balance for ongoing cost increases for the Crossing Guard Services Agreement and added to the PD base 012 08/23/2022 City Council CONTRIBUTIONS FUND 301,000.00 301,000.00 Public Works To increase expenditure appropriations for the Junior Lifeguards Building Project 19-12 City of Newport Beach Fiscal Year 2022-23 Budget Amendments Quarter Ending September 30, 2022 Net Effect on Fund Balance BA# Date Amendment Type Fund Revenues Expenditures Increase/(Decrease) Department Explanation 013 08/23/2022 City Council GENERAL FUND 200,000.00 200,000.00 Library Accept funds from Friends of the Newport Beach Library to the Newport Beach Public Library. 014 09/27/2022 City Manager NB ARTS FOUNDATION- - 9,881.00 Library 2022 City Arts Comission Marina Park Concert PROGRAMMING 015 09/27/2022 City Council OTS GRANT FUND 350,000.00 350,000.00 Police To increase revenue estimates and expenditure appropriations to accept the 2023 State of California, Office of Traffic Safety (OTS) Selective Traffic Enforcement Program (STEP) Grant (#PT23055) 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, related costs for travel and training, and supplies. 016 09/13/2022 City Council GENERAL FUND 80,616.78 (80,616.78) Human Resources To increase salary & benefit appropriations to fund the new MOU with the Association of Newport Beach Ocean Lifeguards (ANBOL). 017 09/13/2022 City Council GENERAL FUND 33,223.00 (33,223.00) Finance To increase budget appropriations to fund the fee study and cost allocation plan services. 018 09/13/2022 City Manager GENERAL FUND 10,000.00 (10,000.00) Fire To carry over $10,000 of unspent FY22 Fitness Equipment budget into FY23, per Newport Beach Fire Association MOU, Section 4.1.1. 019 09/27/2022 City Manager GENERAL FUND 5,000.00 5,000.00 Harbor Accepting and appropriating grant monies from the State of California Department of Fish and Wildlife, Office of Spill Prevention and Response for the purchase of oil spill response equipment. 020 09/27/2022 City Manager GENERAL FUND 5,000.00 5,000.00 Library Literacy Services Special Deposit - Literacy Program Expenses 021 09/27/2022 City Manager GENERAL FUND - - Library Transfer appropriation from Central Library Budget to Library Admin Budget for Librarian III for remainder of FY23 - beginning Pay Period 2307 - 20 Pay Periods. 022 09/27/2022 City Council GENERAL FUND - - CDD To transfer existing budget appropriations from professional services to salary and benefit accounts to fund one full time Code Enforcement Officer I for the remainder of FY23. 023 09/27/2022 City Manager GENERAL FUND 19,281.50 19,281.50 Library Transfer to accept check from Dorothy Arens Ressel Trust and increase expenditure in Library Account. 19-13