HomeMy WebLinkAbout05/23/2023 - Special MeetingCITY OF NEWPORT BEACH
City Council Meeting Minutes
Special Joint Meeting with the Finance Coinmittee
May 23, 2023
I. CALL MEETING TO ORDER - 4:00 p.m.
II. ROLL CALL
Present: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council Member
Robyn Grant, Council Member Lauren Kleiman, Council Member Joe Stapleton, Council
Member Erik Weigand, Finance Committee Member Allen Cashion, Finance Committee
Member Nancy Scarbrough
Excused: Finance Committee Member William Collopy, Finance Committee Member Keith Curry
III. CURRENT BUSINESS
1. Review of the Proposed Fiscal Year 2023-24 Operating Budget [100-2023]
Finance Director Al -Imam and Budget Manager Burguan utilized a presentation to discuss the
principles guiding the development of the budget, opportunities for public review of the budget,
recap the FY 2022-23 third quarter budget, and summarize the expenditure funds, major fund
operating expenditures, and general fund revenue sources.
Mayor Pro Tem O'Neill noted the population of Newport Beach in comparison to Irvine, Anaheim,
and Santa Ana and the stability benefits of relying on property tax revenue versus sales tax revenue
as a percentage of the General Fund budget.
Finance Director Al -Imam and Budget Manager Burguan continued the presentation to review the
General Fund revenues for FY 2022-23 and FY 2023-24, projected sales tax revenue by major
industry groups, General Fund expenditures for FY 2023-24, significant reasons for the 6.4% budget
growth, General Fund transfers, key General Fund program enhancements, proposed additional
staffing, changes in total staffing since 2009 to now, General Fund sources and uses, recent changes
to the City's pension liability, Ca1PERS' historical investment returns and the City's funded status,
turnover of employees, Employee Tiers 2 and 3, the City's pension liability paydown strategy, and
key messages.
Mayor Pro Tem O'Neill relayed that Newport Beach is not experiencing a doom loop, compared the
2016 and 2023 budgets relative to property tax, sales tax, and Transient Occupancy Tax (TOT) and
noted no fees were increased to offset cost concerns, revenues are increasing because people want to
be here, and the City needs to keep investing in infrastructure. Additionally, he pointed out the
increase in calls for medical service and his support for additional medical staffing and ambulances,
reviewed the City's historical investment returns and funded status slide, and thanked the Finance
Committee, City Manager Leung, Finance Director Al -Imam, and the Finance Department.
Council Member Weigand echoed Mayor Pro Tem O'Neill's comments and extended his appreciation
to everyone involved in the budget process and, in response to his question, City Manager Leung
clarified that the Junior Lifeguard staffing budget will not be effectuated until the Junior Lifeguard
building becomes operational.
Council Member Stapleton thanked Mayor Pro Tem O'Neill for his leadership on the Finance
Committee, noted he has been on the Finance Committee for six years and has been fortunate to
live in Newport Beach, thanked staff, and emphasized continued focus on fiscal conservativeness,
creating surplus, conducting capital projects and public safety investments, paying down unfunded
pension liability, and providing the Harbor Department with adequate staffing.
Volume 65 - Page 548
City of Newport Beach
Special Joint Meeting with the Finance Committee
May 23, 2023
Council Member Avery noted that the City would not have thought about bringing on more staff a
couple of years ago, discussed the competition for quality employees, encouraged hiring from within,
and relayed that retention of key employees is important and human capital is the City's greatest
asset.
Council Member Grant thanked everyone involved in the budget process and suggested applying a
portion of the City's surplus to replace the funds for the Witte Lecture Hall.
Council Member Kleiman commended everyone involved, noted the budget is a living document,
and expressed appreciation to the Finance Committee and staff for developing a budget that sets
the City up for employee retention, engagement, and recruitment.
Mayor Blom complimented and thanked City Manager Leung, the Finance Department, the Finance
Committee, and everyone involved in the budget process for doing such a good job, agreed that
Newport Beach is a wonderful city, and pointed out that the goal is to add more services.
Jim Mosher requested that Council delete the City Council's discretionary grants, asked if a more
detailed budget exists, supported the personnel enhancements, and encouraged having a bigger
employee count and using less outside contractors; however, he questioned the repetitiveness of the
"Other Activities" section and the location of the internal fund transfers.
Bill Kroener, Preserve Orange County, requested that some surplus funds be used for a one-time
historical survey of the City.
Charles Klobe noted that $1 million was provided to Laguna Beach by the County of Orange for a
Be Well van and suggested that the City look into whether money is available at the County level.
Laura Curran addressed the operating budget, noted a $500,000 homeless services budget on
page 19 of the presentation with no new positions for legal services or code enforcement, and
requested the addition of qualified legal and lobbying representation, and code enforcement
resources to help bring back the City's quality of life and reduce the City's reputation as an easy
location to have drug and alcohol rehabilitation facilities. Additionally, she requested more
information on current, new, and total staffing counts for each department, questioned the full-time
employee calculations for the City Attorney's Office and other departments, and highlighted
previous discussions about renting out City Hall space as a possible revenue source if staffing levels
decreased.
IV. PUBLIC COMMENTS
Ida Wolff provided signatures supporting the removal of the Ben Carlson statue and replacement with
a bird bath, and suggested issuing tickets to people who smoke cigarettes and marijuana to promote
clean air.
Jim Mosher indicated that the words were removed from the City's website that noted the Finance
Committee's responsibility to oversee the adherence of the City's Fiscal Sustainability Plan and
questioned the City's commitment to adopt results -based budgeting and execution of the strategic plan
for economic sustainability.
Mayor Blom thanked the Finance Committee members for attending today's meeting.
V. ADJOURNMENT — 4:55 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 18, 2023, at 4:00 p.m.
Volume 65 - Page 549
City of Newport Beach
Special Joint Meeting with the Finance Committee
May 23, 2023
Leilani 1. Bro n
City Clerk
Volume 65 - Page 550