HomeMy WebLinkAbout23 - Fiscal Year 2023-24 Budget Adoption, Budget Public Hearing, and Recommendations from the Finance Committee - PowerPointJune 13, 2023
Item No. 23
City Council
June 13, 2023
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Thursday, January 13, 2023 Finance Committee Meeting
Saturday, January 28, 2023 Special City Council Meeting
Thursday, March 16, 2023
Tuesday, March 28, 2023
Finance Committee Meeting
City Council Study Session
Long -Range Financial Forecast (LRFF) update
City Council Planning Session
Overview of FY 2023-24 Revenue Projections
Early Look at CIP Budget
Thursday, April 13, 2023 Finance Committee Meeting Proposed FY 2023-24 Expenditure Budget Review
Tuesday, May 23, 2023 Joint City Council/Finance Committee FY 2023-24 Operating Budget Review
Study Session
Tuesday, May 23, 2023 City Council Study Session Review of Capital Budget for FY 2023-24 CIP
Wednesday, May 31, 2023 Finance Committee Meeting Finalize Recommendations to City Council
Tuesday, June 13, 2023 City Council Public Hearing Adoption of FY 2023-24 Budget
City of Newport Beach — Finance Department
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✓General Fund revenue projections continue to be strong for FY 2023-24 except
for sales tax revenue, which is projected to be flat next year.
✓Proposed General Fund budget is balanced
✓Updated and comprehensive savings plans for long-term needs
✓Maintained pension paydown strategy that is anticipated to result in eliminating
the City's pension liability in 2032
• $40 million
per year from
the baseline budget
plus
an additional $5 million
added as a
supplemental
appropriation at the
time
of budget adoption
✓Structural General Fund budget surplus of $11 million
• Remaining unobligated budget surplus of $6 million after the recommended
supplemental appropriation of $5 million to maintain the pension paydown
strategy of $45 million per year paid to CalPERS, which is $15 million more
than the amount required to be paid to CalPERS.
City of Newport Beach — Finance Department S
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• The Finance Committee met to consider the proposed budget at a special
meeting on May 31 St
• The Committee voted to recommend the City Manager's proposed budget for
FY 2023-24 for City Council consideration as presented.
• The Finance Committee also recommended an allocation of $10 million from
the structural budget surplus, which is reflected in Budget Amendment No.
24-001 and is comprised of:
• $5.0 million allocation to the CalPERS UAL payment to bring the total
contribution for FY 2023-24 to $45 million (as previously discussed with
the City Council on May 23rd )
• $2.5 million transfer to the Facilities Financial Plan (FFP) Fund to set -
aside funds for future capital needs
• $2.5 million transfer to the Capital Improvement Program (CIP) Fund to
set -aside funds for future capital needs
City of Newport Beach — Finance Department
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Beginning Unrestricted Fund Balance
Operating Revenues & Transfers In
Operating Expenditures & Transfers Out
Repayment of Advances
Prior Year Resources Carried Forward
Non -Operating Transfers Out
Preliminary Ending Unrestricted Fund Balance
Increase in Contingency Reserve (estimated)
Repayment of FFP & GF CIP for Dove St
Finance Committee Recommendation:
Additional CalPERS UAL Payment ($40m to $45m)
Transfer to FFP & CIP funds for future capital needs
Final Ending Unrestricted Fund Balance
$24,093,441
295,800,140
(282,326,545)
1,250,000
4,429,573
(27,457,903)
15,788,706
(3,146,237)
(5,206,562)
$7,435,907
304,058,704
(293,917,485)
1,250,000
11,391,219
(5,000,000)
(5,000,000)
$1,391,219
City of Newport Beach — Finance Department
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• Citywide new positions discussed previously
• Various routine position reclassifications have also been included in
the budget for approval as further detailed in the staff report
• Approval of recommended changes to position classifications required
by NBMC Section 2.2.8.030
• Approved annually during the budget process
• CalPERS requires
pay
schedules to be
publicly available, to be
Council
-approved,
and
to meet various
requirements
• Approval of the attached salary ranges by the Council meets these
requirements
• Revised Appendix Aof Key & Management Compensation Plan
City of Newport Beach — Finance Department
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It is recommended that the City Council conduct a public hearing
regarding the City Manager's Proposed Budget for Fiscal Year
2023-24, and approve the recommendations outlined in the
agenda report.
City of Newport Beach — Finance Department