HomeMy WebLinkAbout16 - Set Public Hearing Date to Adopt Fiscal Year 2024-2025 BudgetQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
May 28, 2024
Agenda Item No. 16
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason AI -Imam, Finance Director/Treasurer - 949-644-3126,
jalimam@newportbeachca.gov
PREPARED BY: Anthony Alannouf, Budget Analyst - 949-644-3122,
aalannouf@newportbeachca.gov
TITLE: Set Public Hearing Date to Adopt Fiscal Year 2024-2025 Budget
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Per Section 1102 of the City Charter, the City Manager is to submit the budget to the City
Council at least 35 days prior to the beginning of the fiscal year, July 1. After reviewing
the budget and making such revisions as it may deem advisable, the City Council shall
determine the time for the holding of the public hearing and publish a notice in an official
newspaper not less than 10 days prior to said hearing. The Charter requires the City
Council to adopt an annual budget each year on or before June 30.
RECOMMENDATIONS:
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;
and
b) Schedule a public hearing of the City's Proposed Budget for Fiscal Year 2024-2025
for June 11, 2024, and direct the City Clerk to publish a notice of said hearing in
accordance with Section 1102 of the Newport Beach Charter.
DISCUSSION:
The City's Charter requires that the City Council adopt an annual budget each year on or
before June 30. Staff has provided the Council with copies of the preliminary budget
document, and it is available for public review on the City's website at:
https://www.newportbeachca.gov/government/departments/finance/city-budget-salary
Staff recommends that the City Council set the date for the public hearing on the Fiscal
Year 2024-2025 budget for June 11, 2024. The public hearing would be noticed and held
during the regular Council meeting.
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Set Public Hearing Date to Adopt Fiscal Year 2024-2025 Budget
May 28, 2024
Page 2
FISCAL IMPACT:
The Fiscal Year 2024-2025 proposed budget represents the spending plan for next fiscal
year, which is balanced. The proposed budget reflects a General Fund surplus of
approximately $5.3 million. However, at the time of budget adoption, it is recommended
that an addition $5 million be allocated to paying down the City's pension liability, which
will bring the total paid towards the unfunded pension liability to $45 million. The City has
committed to a pension paydown plan that requires $45 million in annual contributions
towards its unfunded pension liability, which is $15 million more than the amount required
to be paid. This aggressive pension paydown strategy is anticipated to result in
eliminating the City's pension liability in Fiscal Year 2032-2033, assuming CalPERS earns
a 6.8% return on investments on average over the next nine years.
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).
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