HomeMy WebLinkAboutFinance Committee Agenda Packet - April 10, 2025CITY OF NEWPORT BEACH
FINANCE COMMITTEE AGENDA - Final
Community Room
100 Civic Center Drive, Newport Beach, CA 92660
Thursday, April 10, 2025 - 3:00 PM
Finance Committee Members:
Joe Stapleton, Mayor / Chair
Robyn Grant, Council Member
Sara J. Weber, Council Member
Allen Cashion, Committee Member
William Collopy, Committee Member
William Kenney, Committee Member
Kory Kramer, Committee Member
Staff Members:
Grace K. Leung, City Manager
Jason Al-Imam, Finance Director/Treasurer
Shelby Burguan, Deputy Finance Director
Vicky Nguyen, Assistant Management Analyst
NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT
Any presentation requiring the use of the City of Newport Beach’s equipment must be submitted to the Finance
Director/Treasurer 24 hours prior to the scheduled Finance Committee meeting.
NOTICE REGARDING PUBLIC PARTICIPATION
Questions and comments may also be submitted in writing for the Finance Committee’s consideration by sending them
to Jason Al-Imam, Finance Director/Treasurer, at jalimam@newportbeachca.gov. To give the Finance Committee
adequate time to review your questions and comments, please submit your written comments by no later than 5 p.m.
the day prior to the Finance Committee meeting. All correspondence will be made part of the record.
NOTICE TO THE PUBLIC
The Finance Committee meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that
their agenda be posted at least twenty-four (24) hours in advance of each special meeting and that the public be allowed
to comment on agenda items before the Committee and items not on the agenda but are within the subject matter
jurisdiction of the Finance Committee. The Chair may limit public comments to a reasonable amount of time, generally
three (3) minutes per person.
It is the intention of the City of Newport Beach to comply with the Americans with Disabilities Act (“ADA”) in all respects.
If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, the
City of Newport Beach will attempt to accommodate you in every reasonable manner. If requested, this agenda will be
made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the
Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in
implementation thereof. Please contact the City Clerk’s Office at least forty-eight (48) hours prior to the meeting to
inform us of your particular needs and to determine if accommodation is feasible at (949) 644-3127 or
jalimam@newportbeachca.gov.
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Finance Committee Meeting
I.CALL MEETING TO ORDER
II.ROLL CALL
III.PLEDGE OF ALLEGIANCE
IV.PUBLIC COMMENTS ON CONSENT CALENDAR
Public comments are invited on agenda and non-agenda items generally considered to be
within the subject matter jurisdiction of the Finance Committee. Speakers must limit comments
to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for
the record. The Finance Committee has the discretion to extend or shorten the speakers’ time
limit on agenda or non-agenda items, provided the time limit adjustment is applied equally to all
speakers. As a courtesy, please turn cell phones off or set them in the silent mode.
V.CONSENT CALENDAR
MINUTES OF MARCH 13, 2025A.
Recommended Action:
Approve and file.
DRAFT OF MINUTES - MARCH 13, 2025
VI.CURRENT BUSINESS
PROPOSED FY 2025-26 BUDGET OVERVIEW OF EXPENDITURESA.
Summary:
Staff will provide the Committee with an overview of the expenditure budget for
Fiscal Year 2025-26 that will be presented to the City Council in May. Additionally,
the Proposed Performance Measures will be made to the Committee for review and
discussion.
Recommended Action:
Receive and file.
PRESENTATION
ATTACHMENT A
BUDGET AMENDMENTS FOR QUARTER ENDING MARCH 31, 2025B.
Summary:
Staff will report on the budget amendments from the prior quarter.
Recommended Action:
Receive and file.
STAFF REPORT
ATTACHMENT A
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Finance Committee Meeting
WORK PLAN REVIEWC.
Summary:
Staff will report on the upcoming Finance Committee items.
Recommended Action:
Receive and file.
WORK PLAN REVIEW
VII.ADJOURNMENT
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I. CALL MEETING TO ORDER Mayor Joe Stapleton called the meeting to order at 3:04 p.m. in the Civic Center Community Room, 100 Civic Center Drive, Newport Beach, California 92660. II. ROLL CALL PRESENT: Mayor/Chair Joe Stapleton Councilmember Robyn Grant Councilmember Sara J. Weber Committee Member William Collopy Committee Member William Kenney, Jr. Committee Member Kory Kramer ABSENT: Committee Member Allen Cashion (excused) STAFF PRESENT: City Manager Grace K. Leung Finance Director/Treasurer Jason Al-Imam Deputy Finance Director Shelby Burguan Assistant Management Analyst Vicky Nguyen
Budget Analyst Abigail Marin Budget Analyst Anthony Alannouf Finance Manager Jessica Nguyen Finance Manager Trevor Power Finance Manager Jessica Kan Purchasing and Contracts Administrator Jennifer Anderson
Recreation & Senior Services Director Sean Levin Deputy Recreation & Senior Services Director Justin Schmillen Budget Analyst Matthew Chong Senior Management Analyst Trevor Smouse Administrative Manager Chris Miller Administrative Manager Raymund Reyes
Library Services Director Melissa Hartson Library Services Manager Rebecca Lightfoot Public Works Director David Webb
OTHER ENTITIES: None
MEMBERS OF THE PUBLIC: Jim Mosher Nancy Scarbrough III. PLEDGE OF ALLEGIANCE
Committee Member Kory Kramer led the Pledge of Allegiance IV. PUBLIC COMMENTS
Mayor/Chair Stapleton opened public comments. Hearing none, public comments were closed. V. CONSENT CALENDAR A. MINUTES OF JANUARY 23, 2025 Recommended Action:
Approve and file.
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MOTION: Committee Member William Collopy moved to approve the minutes of January 23, 2025, and Councilmember Sara Weber seconded the motion. The motion carried as follows: AYES: Weber, Collopy, Stapleton NOES: None ABSTAIN: Grant, Kramer, Kenney ABSENT: Cashion (excused) VI. CURRENT BUSINESS
A. FISCAL YEAR 2024-2025 FEE STUDY UPDATE
Recommended Action: Review and discuss the proposed fee updates discussed in this report
and provide any recommendations for consideration by the City Manager and City Council.
Finance Director/Treasurer Jason Al-Imam introduced Budget Analyst Abigail Marin to give the presentation on the fee study update. Budget Analyst Marin provided background on the City's fees, explaining that most are cost recovery based with maximum amounts set by the cost to provide the service. She noted that some fees are market-rate based or fines set by council approval. Budget Analyst Marin discussed the spectrum of fees ranging from general public benefit to private benefit, with
general benefit fees tending to be subsidized by general revenues. Budget Analyst Marin explained that the City's authority to charge fees comes from the Newport Beach Municipal Code, fiscal sustainability plan, and certain council policies. She noted that most fees are set at 100% cost recovery as mandated by the municipal code, with exceptions for designated subsidies. Budget Analyst Marin described the process for determining appropriate cost recovery levels, including considering the degree of private benefit and potentially phasing in substantial fee increases over time. She explained that the fee study calculations aim to capture all direct and indirect costs associated with providing services. Budget Analyst Marin presented the results of this year's fee study, which focused on the Library and Recreation & Senior Services Departments. For the Library, recommended changes included updating the Central Library Community Room deposit fee by consolidating the room deposit and the refundable cleaning deposit into one fee. Previously, there was a $196 deposit, with $96 being refunded if there were no damages. In most cases, this deposit has always been refunded, so it was recommended that the new approach be to deduct any net damages from the initial $100 deposit. Additionally, the fee study included formalizing existing fines in the fee schedule, including a fax machine use fee of $1 and fines for overdue materials, as approved by the Board of Library Trustees. For Recreation & Senior Services, changes included consolidating some fees to eliminate redundancy, removing fees for services no longer provided by the City—such as the Special Services Preschool 101 fees, due to expanded preschool offerings by the Newport Mesa Unified School District—and adding new fees for facilities like the Newport Coast Community Center preschool room and the Junior Lifeguard building and patio area. New fees also included an OASIS Garden membership where the City is taking over administration from the Friends of OASIS, and a $5 late registration fee for serving contests to encourage timely registration. Additionally, rental rates for the new lecture hall, courtyard, and AV specialist were proposed in preparation for a 2026 opening. Overall, the proposed updates in the Recreation & Senior Services Department were expected to result in an estimated $192,000 increase in revenues.
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Committee Member William Collopy raised questions about subsidies for programs such as the OASIS Center and Junior Lifeguards, inquiring about who is responsible for making decisions on the levels of subsidization. Staff clarified that these decisions are set in the municipal code but could be revisited by the council if there is a desire to do so. Councilmember Robyn Grant was curious about the fees for the new Witte Hall, which staff confirmed would be based on market rates. Committee Member Kory Kramer suggested that the report should include more comprehensive information on the total amount of subsidies provided by the City across all programs, pointing out that this information was not clearly quantified in the current report. The Committee collectively agreed that this additional information would be valuable for presentation to the council. There was an extensive discussion regarding the process for setting market-based fees and ensuring that appropriate cost recovery levels are maintained. Mayor/Chair Stapleton opened public comments. Ms. Nancy Scarbrough suggested that presenting subsidy information could enhance transparency and aid council decision-making. She emphasized the importance of incremental
cost increases, arguing that adjusting fees annually—rather than imposing large increases every few years—would help the public better understand and accept financial changes. Furthermore, she noted that providing a detailed breakdown of subsidies would offer valuable insights into the City's financial planning. This approach would not only clarify budget allocations but also improve transparency in council decisions.
Mr. Jim Mosher emphasized that a detailed understanding of subsidy impacts could shape perceptions of fairness in council policies. He noted that generous subsidization of certain programs might be viewed differently across community groups if not properly explained. Providing detailed subsidy information could help address these concerns by clearly outlining the rationale behind the subsidies, ensuring council policies are perceived as fair and well-justified.
Mayor/Chair Stapleton closed public comments. The item was received and filed.
B. FACILITIES FINANCIAL PLAN (FFP) AND HARBOR & BEACHES MASTER PLAN (HBMP) Recommended Action: Review and discuss the report on the Facilities Financial Plan and the Harbor & Beaches Master Plan, accept staff's recommended funding levels, and provide any additional recommendations for consideration by the City Manager and City Council.
Deputy Finance Director Shelby Burguan provided an overview of the Facilities Financial Plan
(FFP) and the Harbor & Beaches Master Plan (HBMP). She explained that these plans outline major capital projects and their funding sources over several decades.
For the FFP, Deputy Finance Director Burguan noted it is funded by general fund contributions,
developer agreements, and impact fees. The current budget includes $9.9 million from the general fund for FFP projects. She presented the project planning page showing upcoming FFP projects.
Committee Member William Collopy expressed concern about the large scale and cost of many projects, particularly seawall and pier improvements. He questioned whether all the planned
projects for 2030-2032 could realistically be completed in that timeframe. Mayor/Chair
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Stapleton acknowledged the ambitious nature of the plans but noted they serve as a roadmap that is constantly reviewed and adjusted by the staff and the City Council. For the HBMP, Deputy Finance Director Burguan explained it is funded by Tidelands revenues and general fund contributions. She presented an overview of major HBMP projects planned. Deputy Finance Director Burguan mentioned that in the current fiscal year, $6,000,000 is anticipated in Tidelands revenues, with an additional $5,800,000 being transferred from the general fund. The general fund's contribution is set to increase by 2.5% annually. During the discussion, committee members asked specific questions regarding the funding sources of large projects, aiming to understand better the interplay of funding from different sources and its implications on the financial health of the HBMP. Committee Member William Collopy inquired about the PCH pedestrian bridge project, which has a total cost of $29,000,000 and nearly $22,000,000 in private contributions. Clarifications were provided that this project funding would come through sources like the Orange County Transportation Authority, which planned to provide grant funding due to the traffic mitigation at the intersection impacted by the project. Further analysis included reviewing the major projects that account for approximately 50% of the total funding needs of the HBMP. Committee Member William Collopy inquired about a large increase in the Facilities Financial Plan (FFP) reserve balance projected for 2027-2028. He noted that the reserve balance
appeared to almost double from slightly over $40 million to almost $80 million and sought clarification on the source of this increase. Staff explained that the substantial increase in the reserve balance was attributed to anticipated development agreement revenues scheduled to come in during those years. Finance Director Jason Al-Imam mentioned that the timing of development agreements would
have a significant impact on the financial projections, as they contribute considerable funds once they reach specific stages in the development process. This projection is subject to change as it depends on the timing and status of various development projects managed by the Community Development Department. Committee Member Kory Kramer requested more detailed information about the Tidelands
Fund revenues and expenditures, particularly regarding major lease income sources. He inquired about the main leases contributing to this fund and expressed curiosity about the general revenues that are generated from these leases.
Staff explained that revenue for the Tidelands Fund primarily comes from parking fees in the Tideland area, as well as leases and moorings. They also highlighted the significant lease
contributions from operations such as the Balboa Bay Club. There was also discussion about oil well revenues and the potential plans to phase out city-owned wells. Committee members questioned the City's long-term vision for these assets,
considering their diminishing profitability. Staff noted that there are ongoing plans and discussions to either shut down the oil wells or to determine other methods to maximize their
use.
City Manager Grace Leung explained some of the legislative challenges and restrictions in maintaining oil wells, including recent housing developments near the wells that may affect
their operation, combined with new environmental regulations. The Committee was informed that Utilities Director Mark Vukojevic was actively working on a strategy to address this issue, considering the revenue potential versus the costs and legislative hurdles associated with these operations.
Mayor/Chair Stapleton opened public comments.
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Mr. Mosher questioned the large spike in fund balances shown on slide 12 of the HBMP where the projected balance appears to reach nearly $500 million in 2030. Deputy Finance Director Burguan acknowledged that this was a labeling error and clarified that the bar represents a consolidation of all future years beginning in FY 2030. Mayor/Chair Stapleton closed public comments. The item was received and filed. C. SECOND QUARTER BUDGET AMENDMENT Recommended Action: Review and discuss this report and provide any recommendations for consideration by the City
Manager and City Council.
Deputy Finance Director Burguan presented the second quarter budget update for fiscal year 2024-2025. She reported that general fund revenues were projected to exceed the revised budget by $5.6 million, with positive variances in several categories offset by a slight decrease in projected sales tax revenue. The general fund's anticipated revenue outperformance was primarily attributed to notable gains in property tax, intergovernmental revenues, service fees and charges, other taxes, and licensing permits. However, these increases were somewhat tempered by a decrease in projected sales tax revenue of about $100,000 from the original budget. Deputy Finance Director Burguan provided a detailed overview of the major revenue sources anticipated for the fiscal year, beginning with sales tax, which was projected at $45.2 million. This represented a 4% increase compared to the prior year; however, it was noted to be slightly below the original budget expectations. During the discussion, Mayor/Chair Joe Stapleton questioned the current sales tax projections and the potential impact of the Bentley Porsche dealership reopening. Finance Director/Treasurer Jason Al-Imam explained that sales tax growth projections remain strong for the coming year, driven by the dealership’s anticipated reopening and moderate growth in the autos and transportation sector. Deputy Finance Director Burguan continued her presentation and explained that transient occupancy tax, commonly referred to as TOT, is projected this to reach $32.7 million, marking a 2.9% increase over figures from the previous year. Although residential TOT revenues appeared to be plateauing, it was observed that hotel-based TOT continued to grow, signaling a positive outlook for the tourism and hospitality sectors in Newport Beach. She noted the City's approach to tracking hotel TOT, stating that they monitor revenues from individual hotels and compare them year over year, which assists in fine-tuning projections. Deputy Finance Director Burguan highlighted that the remaining revenue sources were generally displaying a trend above the initial budget projections, indicating overall positive performance across various categories of the City's fiscal revenue portfolio. She mentioned growth in other tax revenue by about $600,000, service fees and charges up by $500,000, and a notable increase of $1,000,000 in mutual aid reimbursements for fire strike teams, illustrating broad-based improvements across multiple areas. On the expenditure side, Deputy Finance Director Burguan reported projected savings of $5.6 million compared to the revised budget, primarily due to vacancy savings in salaries and benefits. The Committee delved into discussions over the reasons behind these vacancies and sought understanding on how these savings could be reallocated or utilized to further benefit the City’s
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financial health. During the conversation, Councilmember Sara Weber sought clarification on the process by which reimbursements for fire strike teams are incorporated into the budget. Her inquiry aimed to understand how these reimbursements are accounted for and their impact on the overall budget projections. It was clarified that these reimbursements were factored in as part of the City's revenue projections, equating to additional funds that offset the cost associated with overtime to backfill when strike teams are called to respond to wildfires. Committee Member Kramer raised a concern about the short-term lodging permit fees in the City, noting that they appear significantly lower than those in other jurisdictions. Finance Director Al-Imam explained that these fees are not market-based but are instead set to ensure full cost recovery. He also stated that the fees would be reviewed in a study next year. Committee Member Kramer brought another perspective by suggesting that the City should explore opportunities to optimize sales tax revenue from auto dealerships and showrooms located in Newport Beach. Finance Director Al-Imam stated that a request would be made for HdL, the City’s sales tax consultant, to present to the Committee on the sales tax rules governing auto sales. Mayor/Chair Stapleton opened public comments. Ms. Scarbrough expressed her concern about the impact of online sales on local tax revenue,
highlighting that currently, online sales tax is attributed to the warehouse location rather than the city of the purchaser. This point emphasized the potential for further legislative actions to address and mitigate these impacts on Newport Beach’s budget. Mayor/Chair Stapleton closed public comments.
The item was received and filed. D. OVERVIEW OF REVENUE PROJECTIONS Recommended Action: Receive and file.
Deputy Finance Director Burguan provided an in-depth presentation of the preliminary revenue projections for the fiscal year 2025-2026. She began by highlighting property tax, which is the City's largest revenue source. Property tax was expected to grow by 4.8%, reaching $160 million, supported by the City's strong property values and continued residential demand. In
explaining this projection, Deputy Finance Director Burguan emphasized the stability and reliability of property tax revenue, which serves as a foundation for the City's financial health.
Approximately 85% of the property tax in Newport Beach comes from residential homes, and the high median prices of single-family homes in the area contribute significantly to this revenue stream. The City's collaboration with a property tax consultant helps ensure that these projections are grounded in thorough analysis and expert insight.
Deputy Finance Director Burguan discussed sales tax, projecting an increase of 6.9% to $48.3
million. She explained that this growth would be fueled by the auto and transportation sectors, reflecting strong consumer demand and robust market conditions. The City's second largest
revenue source, sales tax, comprises 15% of the total general fund revenues, further underscoring its importance. During the presentation, it was noted that the auto sector is
experiencing a particularly strong forecast, driven by new dealership openings and optimism in consumer markets. This prompted a conversation around the fluctuations in sales tax and the City's strategies for tracking these variations.
Another key highlight in her presentation was the projection for Transient Occupancy Tax (TOT), which was also anticipated to grow. The main driver of this growth was hotel-based
TOT, suggesting an optimistic outlook for the local tourism and hospitality sectors, which
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continued to recover and expand post-pandemic. Deputy Finance Director Burguan underscored the City's methodology for projecting TOT, which includes detailed tracking of hotel revenues and occupancy trends. This data-driven approach allows Newport Beach to fine-tune its forecasts and manage expectations regarding TOT revenue, which is integral to planning public services that depend on this funding source. Deputy Finance Director Burguan then discussed the outlook for other general fund revenues, noting a slight projected decrease. This decline was primarily attributed to lower projections for fees related to development activities, reflecting a modest slowdown in new construction and property development within the City. Committee Member William Kenney expressed his concerns regarding potential disruptions in the auto sales market resulting from recent events in Washington D.C. He speculated that these events could potentially have an impact on the City's sales tax projections. His comments prompted a broader conversation about variables affecting sales tax revenue, especially given the volatile nature of auto sales and the potential impact of national economic conditions on local markets. Beyond these sector-specific concerns, the Committee also engaged in a broader dialogue about the relative volatility of sales tax revenues compared to property tax revenues. Members highlighted that sales tax income is more sensitive to economic fluctuations, which makes
accurate forecasting more challenging. The inherent volatility due to changing consumer behaviors and economic trends necessitates vigilant monitoring and adjustment of projections. In contrast, Newport Beach's property tax base remains robust and provides a solid financial foundation. The City's high property values ensure stable and predictable revenue, setting it apart in terms of financial stability.
These discussions underscored Newport Beach's fiscal resilience and the benefits of its strong property tax base amidst revenue streams subject to market volatility. Committee members acknowledged the need for ongoing analysis and adaptation in response to changing conditions, emphasizing the importance of incorporating a range of data sources and expert insights. The Committee recommended staff continue to refine projections, particularly for sales tax, as more data becomes available and economic conditions evolve. This proactive approach
is crucial for maintaining the City's financial health and continuing to provide high-quality public services. Mayor/Chair Stapleton opened public comments.
Jim Mosher raised a question about the Tideland funds, inquiring about the oversight and
repayment structures concerning loans from the general fund. Additionally, he highlighted that
the 16.8% share of property tax revenue going to the City is an average calculated across
various tax rate areas, which means different properties may contribute higher or lower
percentages based on their designated tax areas. This clarification on how property tax rate
areas differ throughout the City adds a layer of complexity to financial management.
Mayor/Chair Stapleton closed public comments. The item was received and filed.
E. ENTERPRISE RISK ASSESSMENT REVIEW Recommended Action: It is recommended that the Finance Committee review and acknowledge the findings of the
enterprise risk assessment and support the continued development of a comprehensive
internal audit work plan based on these results.
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Finance Director/Treasurer Jason Al-Imam presented the results of a preliminary enterprise risk assessment, conducted with assistance from an external audit firm. The assessment focused on evaluating 12 key areas for risk and potential impact. Finance Director/Treasurer Al-Imam explained that the majority of these areas were assessed as low or very low risk, attributing this to the City's highly regulated environment and strong internal controls. These regulations and ongoing audits work together to minimize compliance failures, supporting the overall low-risk determination. Despite the low overall risk rating, Finance Director/Treasurer Al-Imam emphasized that the City still has areas that warrant closer attention. Based on the assessment, staff recommended an annual audit of three focus areas over the next four years, ensuring diligent scrutiny of each area to continuously improve the City's financial and operational frameworks. Committee Member Collopy questioned the rationale behind the relatively high importance assigned to risk management. Finance Director/Treasurer Al-Imam pointed out the extensive activity in risk management, particularly in workers' compensation and general liability processes, justifying its high importance level. Committee Member Kenney sought further clarification regarding the slightly elevated risk level
of cash and investment administration. Finance Director/Treasurer Al-Imam noted that, although the overall risk is low, the portfolio's active nature and constant reinvestments elevate the risk slightly, due to the dynamic nature of the investment environment.
The Committee ultimately agreed with the proposed audit plan. Mayor/Chair Stapleton opened public comments. Hearing none, public comments were closed. The item was received and filed. F. WORK PLAN REVIEW Summary: Staff and Finance Committee to review the proposed work plan and identify matters that members would like placed on a future Agenda for discussion, action, or report. Recommended Action: Receive and file.
Mayor/Chair Stapleton provided an overview of the upcoming work plan for the Finance Committee. He detailed the agenda for the April meeting, which will focus on the budget overview and expenditures for the fiscal year 2025-2026. Moving forward to May, the
Committee will engage in a detailed budget review and subsequently formulate recommendations to present to the council. On May 27, a joint study session with the City
Council is scheduled, facilitating an opportunity for in-depth discussion and collaboration on financial matters. The Committee will then culminate their efforts with May 29 being set aside
for the Finance Committee to make their final budget recommendations to the council.
Mayor/Chair Stapleton opened public comments. Hearing none, public comments were closed. The item was received and filed.
VII. AJOURNMENT
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Before adjourning, committee members expressed appreciation for the thorough and well-organized financial management of the City. Committee Member Kramer commended staff for their work, noting it provides confidence to residents and businesses. Councilmember Grant echoed these sentiments, praising the conservative nature of the City's financial approach. The Finance Committee meeting adjourned at 4:47 p.m. Attest: ___________________________________ _____________________ Joe Stapleton, Mayor/Chair Date Finance Committee
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6A. PRESENTATION Proposed FY 2025-2026 Budget Overview of Expenditures
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FY 2025-26 PROPOSED BUDGET
Finance Committee Meeting –April 10, 2025
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PRINCIPLES GUIDING DEVELOPMENT OF THE BUDGET
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•Budget Priorities:
•Providing high quality municipal services that residents expect
•Providing a safe and secure neighborhood
•Keeping Newport Beach looking great
•Maintaining a prosperous, fiscally sustainable, and economically viable city
•Additional Focus
•Continued emphasis on elimination of the City’s long-term liabilities
•Ensuring proper funding of long-term infrastructure maintenance and replacement
•Addressing key City Council priorities identified at the February 1, 2025, City Council Planning Session
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BUDGET DEVELOPMENT TIMELINE
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Source and Use Projections
Personnel Budget Development
Departmental CIP Preparation
Departmental Budget Preparation
Assistant City Manager Review
City Manager Review
Finance Committee Review
City Council Review
Budget Adoption
Budget Implementation
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Sep
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OPPORTUNITIES FOR PUBLIC ENGAGEMENT & CITY COUNCIL REVIEW OF THE BUDGET
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Date Meeting Type Meeting Purpose
Thursday, January 23, 2025 Finance Committee Meeting Long-Range Financial Forecast (LRFF) update
Saturday, February 1, 2025 Special City Council Meeting City Council Planning Session
Thursday, March 13, 2025 Finance Committee Meeting Overview of FY 2025-26 Revenue Projections
Tuesday, March 25, 2025 City Council Study Session Early Look at CIP Budget
Thursday, April 10, 2025 Finance Committee Meeting Proposed FY 2025-26 Expenditure Budget
Review
Thursday, May 8, 2025 Finance Committee Meeting Follow-up Discussion of Proposed Budget and
Performance Metrics
Tuesday, May 27, 2025 Joint City Council/Finance
Committee Study Session FY 2025-26 Operating Budget Review
Thursday, May 29, 2025 Finance Committee Meeting Finalize Recommendations to City Council
Tuesday, June 10, 2025 City Council Public Hearing Adoption of FY 2025-26 Budget
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FY 2024-25BUDGET STATUS
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RECAP OF SECOND QUARTER BUDGET UPDATE - GENERAL FUND REVENUES
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Adopted Revenue Budget $ 315.3 million
First Quarter Projection $ 318.3 million
Second Quarter Projection $ 323.4 million
•Projected Revenues are $8.1 million (2.58%) higher than the adopted budget
•Primary variances from adopted budget:
•Property Tax + $3.3 million
•Other + $4.8 million
$-
$50
$100
$150
$200
$250
$300
Adopted First Quarter Second Quarter
$68.31 $70.09 $73.20
Mi
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i
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s
Property Tax Sales Tax TOT Operating Transfers In Other
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RECAP OF SECOND QUARTER BUDGET UPDATE – GENERAL FUND EXPENDITURES
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Adopted Budget $ 311.3 million
Revised Budget $ 321.5 million
Second Quarter Projection $ 315.8 million
•Material appropriations to the budget include:
•$5 million appropriation to increase the amount paid to CalPERS towards the unfunded pension liability (from $40 million to $45 million).
•Budget savings of $5.6 million projected, largely from vacancy savings.
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RECAP OF SECOND QUARTER BUDGET UPDATE
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•$17.5 million surplus projected for FY 2024-25 based on the Second Quarter Budget Update
•Additional positive revenue adjustments and expenditure savings will likely be identified as the year progresses, as is usually the case
•Year-end surplus typically used to fund required increase to Contingency Reserve (estimated to be $281k), as well as in accordance with Council Policy F-5
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FISCAL YEAR 2025-26ALL FUNDS BUDGET OVERVIEW
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SUMMARY OF ALL FUNDS - EXPENDITURES
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FY 22
Adopted
FY 23
Adopted
FY 24
Adopted
FY 25
Adopted
FY 26
Proposed % Variance
Operating Budget 291,523,400 330,919,923 351,870,115 368,155,904 373,386,729 1.4%
Transfers Out 39,075,536 53,035,836 58,859,125 72,312,196 76,724,697 6.1%
CIP New Appropriations 35,506,078 71,030,292 29,375,044 54,344,000 66,105,156 21.6%
Total Budget 366,105,014 454,986,051 440,104,284 494,812,100 516,216,582 4.3%
•6.1% growth in transfers out, primarily due to increased transfers out in FFP and HBMP; offset by decrease in Tidelands Fund Transfer out
Note: Prior year amounts have been restated to align with current accounting for Tideland expenditures
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ALL FUNDS OPERATING EXPENDITURES TREND
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$298.5 $308.8 $321.0
$370.4
$404.1
$368.2 $373.4
$65.5
$100.4 $87.9
$134.5
$110.2
$72.3 $76.7
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
2019-20
Actual
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
Operating Expenditures
Transfers Out
Mi
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OPERATING EXPENDITURES BY FUND
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70.74%
5.73%
10.71%
1.30%11.51%
General Fund
Tidelands Fund
Water Fund
Wastewater Fund
Other Fund
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MAJOR FUND OPERATING EXPENDITURES
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•General Fund growth of 2.3% outlined in detail on subsequent slides
•Tidelands Fund growth of 4.9% primarily due to:•Updated Cost Allocation Plan•Program Enhancement Requests
•Water Fund increases largely due to General Liability Insurance and transfer to Water Capital Fund for projects
FY 22
Adopted
FY 23
Adopted
FY 24
Adopted
FY 25
Adopted
FY 26
Proposed % Variance
General Fund 246,163,632 276,111,174 293,917,485 311,258,638 318,423,118 2.3%
Tidelands Fund 20,727,144 20,978,717 23,312,029 24,579,410 25,790,773 4.9%
Water Enterprise Fund 27,933,241 32,469,765 34,023,346 38,528,044 48,200,067 25.1%
Wastewater Enterprise Fund 3,956,840 4,984,651 5,197,917 5,321,136 5,868,790 10.3%
Other Funds 49,408,984 49,911,451 54,778,463 60,780,872 51,828,679 -4.7%
348,189,842 383,955,759 410,729,240 440,468,100 450,111,426 2.2%
Note: Amounts Include Operating Expenditures and Transfers
26
GENERAL FUND BUDGET OVERVIEW
27
GENERAL FUND REVENUE SOURCES
15
Property Taxes
48%
Sales Tax14%
Transient Occupancy
Tax
10%
Other Taxes
3%
Charges for Services
10%
Property Income6%
Transfers
6%
All Other Sources
3%
28
FY 2025-26 GENERAL FUND REVENUES
16
2024-25 Projected $ 323.4 million
2025-26 Proposed $ 332.5 million
•Projected revenues for FY 2025-26 are $9 million (2.8%) higher than amounts currently projected for FY 2024-25
•Primary drivers of revenue growth due to:
•Property Tax + $7.4 million (4.9%)
•Sales Tax + $2.1 million (4.7%)
•Transient Occupancy Tax + $1.3 million (4%) $-
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
FY 2023-24
Actuals
FY 2024-25
Projected
FY 2025-26
ProposedBudget
Mi
l
l
i
o
n
s
Property Tax Sales Tax TOT Transfers Others
29
GENERAL FUND EXPENDITURES FOR FY 2025-26
17
2024-25 Adopted Budget $ 311.3 million
2025-26 Proposed Budget $ 318.4 million
•The Proposed Budget for FY 2025-26 reflects:
•2.3% increase over FY 2024-25 Adopted Budget
•$40 million allocated to paying down the City’s unfunded pension liability
•$1.53 million in program enhancements
-
50
100
150
200
250
300
350
FY 24-25 AdoptedBudget FY 25-26 ProposedBudget
Mi
l
l
i
o
n
s
Salaries & Benefits Non-Personnel Transfers
30
SIGNIFICANT REASONS FOR BUDGET GROWTH OF 2.3%
18
Amount
% Change from
Adopted FY25
Decrease in Internal Service Charges (OPEB)(1,719,401) -0.5%
GF Program Enhancements 1,533,106 0.5%
CPI increases to M&O Budgets 2,573,312 0.8%
Other Routine Personnel (COLA, PERS rate changes)805,670 0.3%
Increase in base Transfers (FFP, HBMP)5,638,755 1.8%
Decrease in base Transfers (Tidelands & Submerged
Lands, Debt Service)(1,647,462)-0.5%
Remove One-Time FY25 Enhancements
Flock APR Ongoing Cost Decrease (19,500)-0.01%
Total Increase 7,164,480 2.3%
31
GENERAL FUND EXPENDITURES BY DEPARTMENT
19
2021-22 Adopted 2022-23 Adopted 2023-24 Adopted 2024-25Adopted 2025-26 Proposed % Variance
City Council 841,003 909,554 924,218 931,993 903,038 -3.1%
City Clerk 1,080,305 1,265,760 1,191,331 1,310,158 1,212,860 -7.4%
City Attorney 2,725,458 2,350,264 2,526,824 2,661,605 2,581,181 -3.0%
City Manager 4,571,940 5,992,008 6,760,029 7,392,972 7,342,147 -0.7%
Human Resources 3,448,725 3,440,696 3,770,070 3,937,952 3,916,731 -0.5%
Finance 9,667,618 9,982,311 10,275,379 10,476,613 10,645,852 1.6%
Police 67,401,926 71,622,531 73,415,698 78,156,707 77,013,689 -1.5%
Fire 55,861,885 60,255,549 64,405,996 65,865,961 67,462,807 2.4%
Community Development 12,772,405 13,798,699 14,937,632 17,233,367 17,398,688 1.0%
Library 9,655,108 9,432,008 10,259,001 10,818,892 10,470,904 -3.2%
Recreation and Senior Services 13,360,496 13,627,977 15,394,067 16,151,132 15,969,119 -1.1%
Public Works 41,305,237 44,397,921 46,594,485 48,680,984 51,243,847 5.3%
Utilities 5,144,631 5,649,416 5,982,258 6,156,003 6,504,623 5.7%
Miscellaneous Non-Operating 126,896 3,795,710 2,991,226 2,228,689 2,528,547 13.5%
Vacancy Factor (2,000,000)(2,000,000)0.0%
SubTotal 225,963,632 244,520,405 259,428,214 272,003,027 275,194,034 1.2%
Transfers Out 20,200,000 31,597,269 34,489,271 39,255,611 43,229,084 10.1%
Total 246,163,632 276,117,674 293,917,485 311,258,638 318,423,118 2.3%
32
GENERAL FUND TRANSFERS OUT
20
•Transfer to FFP based on 3% of revenues per policy. Increased by $1 million in FY 2024-25. Proposed increase of additional $5 million, as presented with the FFP update on March 13th.
•Transfer to Tidelands decreased due to lower CIP projects in FY2025-26
2021-22 Adopted 2022-23 Adopted 2023-24 Adopted 2024-25 Adopted 2025-26 Proposed % Variance
General Fund CIP 5,700,000 5,530,000 6,000,000 6,500,000 6,500,000 0%
Facilities Financing Plan (FFP)8,500,000 8,600,000 444,141 1,285,152 6,778,085 427.4%
Harbor & Beaches Master Plan 4,500,000 4,600,000 4,715,000 5,832,875 5,978,697 2.5%
Facilities Maintenance Plan
(FMP)1,500,000 2,500,000 2,500,000 2,500,000 2,500,000 0.0%
Tidelands Operating Fund 9,987,817 11,152,510 12,256,805 10,611,825 -13.4%
Parks Specific CIP Projects 1,000,000 2,300,000 2,300,000 0%
Fire Equipment Fund 379,452 0.0%
Debt Service Fund 8,677,620 8,580,779 8,560,477 -0.2%
Total 20,200,000 31,597,269 34,489,271 39,255,611 43,229,084 10.1%
33
GENERAL FUND INTERNAL SERVICE FUND CHARGES
21
•Insurance charges are increasing due to increasing premiums, particularly Workers Compensation which increased by 10%
•OPEB reflecting decrease due to being fully funded
•Compensated Absences is based on 3.5% of fulltime salaries, increases are due to COLAs, Merit Increases, and new positions added.
FY 22
Adopted
FY 23
Adopted
FY 24
Adopted
FY 25
Adopted
FY26
Proposed % Variance
Information Technology 6,595,085 6,888,238 7,358,798 7,477,883 7,644,141 2.2%
Vehicle Replacement 3,327,141 3,922,740 3,730,547 3,844,299 3,971,852 3.3%
Equipment Replacement 2,779,552 2,822,871 3,159,080 3,144,267 3,297,128 4.9%
Insurance 7,866,768 10,777,438 11,199,865 12,804,430 14,219,462 11.05%
OPEB 4,510,345 3,778,920 3,964,953 3,974,618 359,610 -91%
Compensated Absences 2,481,372 2,562,839 2,716,447 2,957,695 2,993,392 1.15%
Total $ 27,560,262 $ 30,753,045 $ 32,129,690 $ 34,203,192 $32,485,585 -5.0%
34
PROGRAM ENHANCEMENTS & STAFFING CHANGES
35
SUMMARY OF RECOMMENDED ENHANCEMENTS
23
Fund Name Department Description Budget Increase
Uninsured Claims Fund City Attorney Prosecutorial Services 130,000
General Fund Community Development Re-Class FT Mgmt Analyst to Sr Mgmt Analyst 11,364
General Fund Community Development Re-Class Senior Planner to Principal Planner 10,499
General Fund Community Development Budget Position at Associate Planner Level 11,614
General Fund Community Development New Vehicle 30,500
General Fund Community Development Full Time Management Analyst 140,056
IT Fund CMO/IT Addition of Cybersecurity - IT Engineer 218,628
IT Fund CMO/IT Re-Class Sr. IT Analyst to GIS Coordinator -
General Fund Finance Re-Class Mgmt Analyst to Sr Mgmt Analyst 10,060
General Fund Finance Conversion of Buyer to Senior Buyer 11,309
General Fund Finance Additional 0.10 FTE to Part Time Sr Fiscal Clerk 17,437
General Fund Fire Fire Station Maintenance Account Consolidation and Increase 82,300
General Fund Fire Increase EMS Supply/Billing Budgets -
General Fund Fire ISF Equipment Contribution Increases 50,000
General Fund Fire Title Change: Training Battalion Chief to Administrative Services Division Chief -
36
SUMMARY OF RECOMMENDED ENHANCEMENTS (CONT.)
24
Fund Name Department Description Budget Increase
General Fund Fire Lifeguard Officer PT to FT Conversion 89,949
General Fund Fire Senior Fiscal Clerk to Fiscal Specialist (616)
Tidelands& Submerged Lands Fund Harbor Additional (Used) Patorl Vessel 20,000
Tidelands& Submerged Lands Fund Harbor Administrative Assistant to Management Analyst 5,900
Tidelands& Submerged Lands Fund Harbor
Convert Code Enforcement Trainee Positions to CEO I and CEO II
Positions 24,558
Tidelands& Submerged Lands Fund Harbor Increase Training and Travel Budgets 13,000
General Fund Human Resources Increase Recruitment and Physical Budgets 75,000
General Fund Human Resources Increase Wellness Program and Benefits Budgets 10,000
General Fund Library 0.96 P/T Library Clerk II 64,086
General Fund Library Cultural Arts Division Funding for 3-Year Sculpture Exhibition Period 79,080
General Fund Police Increaed Flock ALPR Data Storage 21,900
General Fund Police Tactical Emergency Medical Services (TEMS) Program 5,000
General Fund Police Wildlife Care Expenses 27,600
General Fund Police LEADS Online Database 15,561
General Fund Police Vehicle Washing Expenses 35,262
37
SUMMARY OF RECOMMENDED ENHANCEMENTS (CONT.)
25
Fund Name Department Description Budget Increase
Asset Forfeiture Police Ongoing CIC Technology Support -
General Fund Public Works Additional Staffing and Funding to Facilitate Facilities Maintenance 82,948
General Fund Public Works Facilities Maintenance 125,000
General Fund Public Works
Reclass PT Maintenance Aides to PT Maintenance Workers to Support Enhanced Summer
Maintenance 33,446
General Fund Public Works Reclass FT Senior Civil Engineer to FT Management Analyst (46,199)
General Fund Public Works Municipal Operations Divisions Classification Study Report 28,639
General Fund Public Works
Reclass Equipment Operator II to Public Works Crew Chief and Enable Independently
Functional Concrete and Repair Crews
3,948
General Fund Public Works Flex Positition Budget Ipdate - Analyst Series 6,993
General Fund Public Works Increase Parks Hazard and Mitigation Account 250,000
General Fund Public Works Increase Professional Services Budget for Contractor Inspector Needs 150,000
Equipment Fund Public Works
Additional Equipment Operations Budget for Automobile Parts, Materials and Supplies, and
Outside Maintenance Labor
75,000
General Fund
Recreation and
Senior Services Reclass Park Patrol Officers to Rec Coordinators 6,717
38
SUMMARY OF RECOMMENDED ENHANCEMENTS (CONT.)
26
Fund Name Department Description Budget Increase
General Fund Recreation and Senior Services Lecture Hall staffing and maintenance 47,789
General Fund Recreation and Senior Services OASIS Garden Club Supplies (1,300)
General Fund Recreation and Senior Services OASIS Fitness Center Revenue/Expenditure Increase -
General Fund Recreation and Senior Services North Star Beach Summer Restrooms 18,000
Wastewater Fund Utilities Sewer Video Inspection Services - Contract/SSMP 166,375
General Fund Utiltiites Reclass (3) Equip Operator II & (1) Maint Wrk to Sr. Util Specialist and Util Specialist 29,163
Water Fund Utilities Convert Dept. Assistant to Management Analyst 49,362
General Fund Total 1,533,106
Grand Total 2,235,929
39
PROPOSED ADDITIONAL STAFFING ENHANCEMENTS
27 40
PROPOSED ADDITIONAL STAFFING ENHANCEMENTS (CONT.)
28 41
29
CHANGES IN TOTAL STAFFING 2009 – NOW
967 946 925
886 878
848 853 867 855 867 877 886 888 895 902 916
500
600
700
800
900
1000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
921 927
42
PERFORMANCE MEASURES
43
PERFORMANCE MEASURES
31
•Implemented as component to qualify for the GFOA Budget Award
•Useful tool for departments to track performance
•Each departments measures are unique to their operations
•Examples of measures in departments
•Finance – Average turnaround time from requisitions to purchase orders
•Police – Average response time for Priority 1 & 2 calls
•Public Works – Percentage of refuse collected that is diverted (recycled or composted)
•Utilities – Percentage of sewer mainlines cleaned annually
44
GENERAL FUND RESERVES AND SURPLUS
45
GENERAL FUND SOURCES AND USES
33
FY 2024-25
Projected
FY 2025-26
Proposed
Beginning Unrestricted Fund Balance $ 15,752,275 $ -
Operating Revenues & Transfers In $ 323,420,032 $ 332,457,397
Operating Expenditures & Transfers Out $ (315,826,017)$ (318,423,118)
Repayment of Advances $ 1,250,000 $ 1,250,000
Prior Year Resources Carried Forward $ 6,786,845 $ -
Non-Operating Transfers Out $ (13,924,578) $ -
Preliminary Ending Unrestricted Fund
Balance $ 17,458,557 $ 15,284,280
46
RECAP: KEY MESSAGES
34
•Proposed General Fund budget for FY 2025-26 is balanced
•Updated and comprehensive savings plans for long-term capital needs
•Maintained pension UAL payment of $40 million, recommending funding additional $5 million with year-end surplus, resulting in paydown of the liability in 2033
•Structural General Fund budget surplus of $15.3 million is projected for FY 2025-26 subject to the Council’s direction as to possible additional resource allocations
47
35
QUESTIONS?
48
ATTACHMENT A
Performance Measures
49
Department
City Attorney’s Office
Summary of Notable Accomplishments During Fiscal Year 2024-25
•Worked with the City’s public safety officers to prepare amendments to the Newport Beach
Municipal Code to address quality of life issues related to access to public facilities and
camping on public property.
•Worked with City staff regarding the implementation and legal defense of the City’s 6th
Cycle Housing Element.
•Worked with City staff to finalize agreements related to real property including, the
development of private projects, the acquisition of real property, and the use of City
property.
Budget Highlights
•Additional $130,000 secured to obtain prosecution services via external counsel.
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
•Ensure that the City Attorney’s Office supports the Housing Element implementation
process.
•Ensure contracts, resolutions and ordinances are completed in a timely manner.
•Ensure that people violating the Newport Beach Municipal Code are deterred from
committing future crimes.
Department Performance Measures
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target Percentage (%) of Standard Contracts completed within 10 business days of complete submission.
N/A 95% 100% 100%
Percentage (%) of Standard Misdemeanor Citations filed within 5 business days of the scheduled arraignment date.
N/A 100% 100% 100%
Percentage (%) of resolutions & ordinances completed by City Council Staff Report
deadline.
N/A 100% 100% 100%
50
Department
City Clerk
Summary of Notable Accomplishments During Fiscal Year 2024-25
• Worked with Netfile to launch an Ethics Training Seminar to meet AB1234 requirements
• Worked with Netfile to create a Lobbyist application for maintaining Lobbyist Registration Forms.
• Worked with Netfile for AB 1170 that requires all GC 87200 filers to file directly with the FPPC
• Hosted Operation Christmas to collect toy donations for military families. Budget Highlights
• City Clerk’s Office goal is to continue staying within budget for FY2025-26. Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
• Host two Citywide Records Management Workshops to train and inform City staff of best practices.
• Continue to promote transparency by uploading City Council documents to the City’s website within 3 days of the meeting. Department Performance Measures
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target
Public Records Act Requests assigned to City Clerk’s Office responded to within 10-days 100% 100% 100% 100%
Public Records Act Requests completed by City Clerk’s Office within 10 days 90% 95% 85% 100%
Percentage of regular City Council minutes prepared within 10 days of meeting 100% 100% 100% 100%
Percentage of Fully Complete Council Packets (Staff Reports / Ordinances / Resolutions / Etc.) Uploaded within 5 days of Meeting
100% 100% 100% 100%
51
Department
City Manager’s Office
Summary of Notable Accomplishments During Fiscal Year 2024-25
Information Technology Division:
•Successfully kicked off and completed a comprehensive 5-Year IT & GIS Strategic Plan,
setting a long-term direction for technology and GIS initiatives.
•Adopted an agile application development process, enabling faster delivery and greater
flexibility in City-developed applications and custom configurations.
•Modernized the City's device deployment process by implementing Microsoft InTune,
streamlining setup and management.
•Reduced the City's phish-prone score, a key cybersecurity risk metric, by 3.8%,
enhancing overall organizational security.
•Completed a major version upgrade of the City's Enterprise Permitting System,
improving functionality and security features.
•Upgraded the Library's Integrated Library System to a newer version, providing access
to enhanced capabilities and better security.
•Launched a new mobile catalog app for the Library, delivering a modernized and user-
friendly experience for patrons.
•Completed the Fire Station Alerting Modernization Project, equipping all stations except
Station 1 with a resilient and updated alerting system.
•Strengthened the City's cybersecurity by automating data classification labeling to
support data loss prevention efforts.
•Implemented a self-service email backup and recovery tool, empowering staff to manage
their email recovery and discovery needs efficiently.
Outreach Division:
•Added five additional beds at the Costa Mesa Bridge Shelter with the option to add an
additional 6 per diem beds if Costa Mesa has availability.
Budget Highlights
Outreach Division:
•Good Giving Donations have increased year over year.
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
Information Technology Division:
•Deploy a New Fire Records Management System: Implement the First Due system to
modernize and streamline fire records management.
•Replace Legacy Licensing System: Introduce a new platform for Business Licensing,
Transient Occupancy Tax, and Short-Term Lodging Permitting to enhance functionality
and efficiency.
•Enhance Disaster Recovery Preparedness: Develop a comprehensive Disaster
Recovery Plan and conduct team exercises to ensure readiness and procedural
adherence.
52
•Support Library Lecture Hall Construction: Complete the technology infrastructure
and integration for the Library Lecture Hall project.
•Strengthen Network Security: Perform a network penetration test to identify and
address vulnerabilities, enhancing the City’s cybersecurity posture.
•Execute the IT Strategic Plan: Begin implementing the key initiatives and
recommendations outlined in the IT Strategic Plan.
•Upgrade Council Chambers Technology: Modernize and refresh the audio-visual
equipment in the Council Chambers to improve functionality and public engagement.
•Update our technology inventory practices to better monitor and track device inventory
and retirement.
Outreach Division:
•Continue to house or reunify individuals experiencing homelessness into permanent living
conditions.
•Facilitate street exits to shelters, skilled nursing facilities, or recuperative care facilities.
Department Performance Measures
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target
Information Technology Division Mobile App Utilization / Impressions 33,200 Impressions 50,000 Impressions 60,000 Impressions 100,000 Impressions
Help Ticket Resolution
Time
48 Hours
Average Resolution
41 Hours
Average Resolution
36 Hours
Average Resolution
36 Hours
Average Resolution
Cybersecurity Training Effectiveness (phish-prone score)
11.8% Phish-Prone Score 8% Phish-Prone Score 7% Phish-Prone Score 6.1% Phish-Prone Score
System Upgraded & Updated 93% of Systems
Upgraded / Updated
93% of Systems
Upgraded / Updated
95% of Systems
Upgraded / Updated
100% of Systems
Outreach Division Percentage of filled Newport Beach allocated
beds at Costa Mesa Bridge Shelter
95% 96% 96% n/a
Increase the number of individuals housed or reunified through further collaboration with City Contractors
28 individuals housed / reunified
19 individuals housed / reunified
25 individuals housed / reunified
n/a
Number of Street Exits
(Housed, Reunified with Family, Placed in Assisted Living/Skilled
Nursing or Sheltered)
104 Street
Exits
52 Street Exits 52 Street Exits n/a
53
Department
Community Development
Summary of Notable Accomplishments During Fiscal Year 2024-25
•A complete and successful overhaul of the refuse enforcement and demolition deposit
program, resulting in increased revenue from citations and demo forfeitures.
•Completion and adoption of the land use element, zoning code, and objective design
standards implementing the housing element.
•Online Commercial Plan Check and Permitting available through the CiViC portal.
•The implementation of the beach vendor enforcement program.
•Acquisition of property at 301 E Balboa Blvd for future public parking.
Budget Highlights
•Preparation of a Specific Plan for Airport Area.
•Amend Objective Design Standards to address taller structures.
•Completion of the comprehensive General Plan Update.
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
•Completion of the comprehensive General Plan Update.
•Continued implementation of the City’s Housing Element.
•Continue to improve the customer online experience for all development services including
all permits and applications available through the CiViC portal.
•Increased Short- Term Lodging proactive inspections.
•Comprehensive Fee Study.
Department Performance Measures
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target
BUILDING DIVISION PERFORMANCE METRIC
Percentage of building inspections provided within 1 business day of request 91% 90% 95% 95%
Percentage of 1st plan checks reviewed and completed over the counter 81% 77% 80% 80%
Percentage of 1st plan checks reviewed
within 10 days of submittal
95% 88% 90% 90%
CODE ENFORCEMENT DIVISION PERFORMANCE METRIC
Percentage of first enforcement actions
within 3 days of complaint
90% 91% 90% 90%
Percentage of violations resolved in 30 days or less 80% 88% 65% 65%
PLANNING DIVISION PERFORMANCE METRIC
Percentage of 1st plan checks reviewed and completed over the counter 83% 85% 80% 80%
Percentage of 1st plan checks reviewed
within 10 days of submittal
90% 95% 90% 90%
54
Department
Finance
Summary of Notable Accomplishments During Fiscal Year 2024-25
•Moody’s and Fitch reaffirmed the City’s AAA credit rating (the highest possible rating) in
2024, which was based, in part, on the well-controlled expenditure framework coupled
with a very solid level of budget management.
•Provided the Finance Committee and City Council with timely quarterly budget updates.
•Effectively managed the City’s investment portfolio with a continued goal of maximizing
investment returns while safeguarding principal and remaining sufficiently liquid to meet
future expenditures.
•Implemented Governmental Accounting Standards Board Statement (GASB) No. 101,
Compensated Absences.
•Finalized the City’s Annual Comprehensive Financial Report (ACFR) in a timely manner
for the most recent fiscal year, which reflected an “unmodified” or clean opinion that the
City’s financial statements were presented fairly and were free of findings.
•Received the Government Finance Officers Association’s “Certificate of Achievement for
Excellence in Financial Reporting” for the most recent fiscal year, which is the highest
form of recognition in governmental accounting and financial reporting.
•Received the Government Finance Officers Association’s “Distinguished Budget
Presentation Award”, which is the highest form of recognition in governmental budgeting.
Additionally, the City’s budget received special recognition in Budget Process which
occurs when the highest possible score is received in a particular category.
Budget Highlights
•Reclass of Management Analyst to Senior Management Analyst
•Conversion of Buyer to Senior Buyer
•Additional 0.10 FTE to Part Time Senior Fiscal Clerk
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
•Continue to develop and implement a budget that confirms to guidelines established by
the Government Finance Officers Association for the “Distinguished Budget Presentation
Award Program”, which must excel as a policy document, financial plan, operations
guide, and communication tool.
•Effectively manage the City’s investment portfolio with a continued goal of maximizing
investment returns while safeguarding principal and remaining sufficiently liquid to meet
future expenditures.
•Provide the Finance Committee and City Council with timely quarterly budget updates.
•Conduct fee study assessments for Community Development, Police and Fire.
•Conduct Citywide Full Cost Plan (including Harbor Tidelands).
•Maintain the City’s AAA credit rating by continuing to maintain a well-controlled
expenditure framework.
•Continue to implement the City’s pension paydown strategy with the goal of eliminating
the City’s pension liability in 2032.
55
Department Performance Measures
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target
Long-term bond rating issued by Fitch Ratings AAA AAA AAA AAA
Rate of return on pooled
investments compared to the benchmark index
City Return:
4.70% Benchmark: 4.54%
City Return:
3.75% Benchmark: 3.50%
City Return:
3.25% Benchmark: 3.00%
Benchmark or
higher
Average wait time on
telephone calls made to the revenue division
2 minutes and
46 seconds
2 minutes and
31 seconds
2 minutes and
20 seconds
2 minutes
New vendors registered in the city’s vendor
registration and bid management system
1,696 new vendors 1,300 new vendors
-23.35%
1,600 new vendors
23.08%
+3.00-5.00%
from prior year
Average turnaround time from requisitions to purchase orders
1-4 days 1-3 days 1-2 days Maintain 1-3 days
Obtained an unmodified (“clean”) audit opinion on the city’s financial statements within six months of year-end
Unmodified (“clean”) audit opinion issued on 12/30/24
Unmodified (“clean”) audit opinion issued
Unmodified (“clean”) audit opinion issued
Unmodified (“clean”) audit opinion issued
% of Continuing
Disclosures filed in a timely manner (270 days)
100% 100% 100% 100%
56
Department
Fire
Summary of Notable Accomplishments During Fiscal Year 2024-25
•Submission and successful award of grant funding from CAL FIRE for Buck Gully
Hazardous Fuel Thinning and Reduction Project
•Resurgence of CERT program, including replacement of CERT shed and overhaul of
supplies and equipment
•Approval and purchase of four 2028 Pierce Fire Engines to be delivered in 2027-28
•Transition to Red Cross certification process for EMR, EMT and related trainings
•Purchase and implementation of new Records Management System software
•Compilation of cardiac patient save data statistics; NBFD has an average 2-2.5x the
national average.
Budget Highlights
•Additional maintenance funding to supplement preventative maintenance efforts and
increased repairs to aging facility components.
•Implementation of Buck Gully hazardous fuel reduction grant project
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
•Re-emphasize department values through revitalization of culture.
•Continue the expansion of the CERT program, including Teen CERT and training for
designated City employees.
•Commemorating 50 years of paramedic service in the City.
•Focusing on hiring/promotions for long term succession from recruitment to retirement.
•Fire Department Technology Committee coordination/partnership with Police Department
on Drone program
Department Performance Measures
1 Totals based on preceding calendar year—MetroNet Data
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target
Fire Plan Check review turnaround time (avg time for
new construction)
99.08% 98.89% 97% 90% of all initial (1st Round) plan
check reviews within 15 working days or less
Number of medical transports by non-NBFD ambulances (neighboring agencies provide
assistance when all units are unavailable)1
4 TBD Under 30 Under 30
57
2 Mutual Aid Responses in FY24-25 – including LA Fires Jan 2025
3 (US Lifeguarding Association stat is 1 in 18 million beach visits)
Maintain Staffing & Reduce
Overtime
Within FY
Budget
Over
Budget2
Within FY
Budget
Within FY Budget
Drowning incidents are below the USLA statistical average3 Yes Yes Yes Drowning incidents do not exceed USLA
statistical average
Average Response Time - Medical Calls (Dispatch to Arrival)
5.55 min (CY2024) Under 6 min Under 6 min Time below NFPA 1710 Standard (8 min) for Advance
Life Saving response to medical aid
58
Department
Harbor
Summary of Notable Accomplishments During Fiscal Year 2024-25
•Deployment of a new, all-electric patrol vessel. This is the first all-electric workboat
delivered to any public agency in the United States
•Opening of the new public dock at 29th Street
•Continued improvement to the technology we use to deliver services including
o Scheduling and assigning tasks
o Reporting on the status of service requests (see heat map of service requests)
o Tracking the use of the free anchorages
o Better charging of devices on the patrol boats
•Updated the weights and reported materials used for ground tackle on the 995 moorings
we manage allowing for detailed analysis and formulation of a plan to improve associated
water quality
•Arrested a vessel abandoned in the harbor subsect to several liens (a process the City
has not been involved in since the inception of the Harbor Department)
•Issued more harbor-related permits than ever before
o 74 Rhine Use Permits
o 74 Marine Activities Permits
o 58 Harbor Event Permits
•Engaged in cooperative and collaborative spill response drills and exercises with the
following agencies:
o United States Coast Guard
o California Department of Fish and Wildlife
o California National Guard Marine Command
•Purchased (but not yet deployed) a Clean Earth Rover automated debris collectionvessel. It should be operational in late Spring and will include a new feature that collectsliquid contaminants on the surface of the harbor
•Collaborated with a privately owned and sponsored debris-collecting vesseloperation. We are the repository for what is collected by this private operation and provide
the operator with special access to City facilities
•Sponsored and contributed significant resources to the newly revived 2024 Newport
Harbor Underwater Cleanup
•Witnessed, documented, and publicized evidence of marine species reintroductions in theharbor including sea stars and the blue shark
•Added water quality improvement-related conditions to the Marine Activities Permitswritten for all commercial operations on Newport Harbor
•Conducted the first-ever expired marine flare collection event in the city for which therewas heavy demand
Budget Highlights
•Our program enhancement requests for FY26 total a modest 5% increase to the Harbor
Department’s budget but will allow us to better deliver on our “clean, safe and well-
enjoyed” mission to even more constituents. The enhancement requests are focused on
improving the capability and visibility of our service offerings to the community
59
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
•Continue the removal of unseaworthy, unsafe, or unsanitary vessels from the harbor. The
target is the removal of 15 abandoned or surrendered vessels that meet the criteria for
unseaworthy, unsafe or unsanitary vessels. Funds are running low in our current grant
from the State but we are working with them on an application for more funds to support
these efforts
•Remove the arrested vessel that was abandoned in the harbor heavily laden with liens
•Continue to improve the department’s engagement with the local community through
educational programs, events, and outreach efforts aimed at promoting harbor
stewardship and fostering positive relationships with residents and visitors (responses to
media, support for public events including the Boat Show, Newport to Ensenada,
Christmas Boat Parade, Underwater Cleanup, Maritime Command (MARCOM) disaster
response exercises). Participate and document at least eight such events per year
Department Performance Measures
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target Removal of unseaworthy, unsafe, or unsanitary
vessels
24 vessels removed 15 vessels 12 vessels 10 vessels removed
Improve Occupancy – Marina Park Slips 3770 nights 4,100 nights 4,500 nights 4,950 Nights
Improve Occupancy – Marina Park Moorings 776 nights 500 nights 600 nights 660 Nights
Improve Occupancy – Offshore sub-permits 9,638 nights 8,000 nights 9,000 nights 9,900 Nights
Improve Occupancy –
Onshore sub-permits
6,386 nights 6,200 nights 6,800 nights 7,480 Nights
Achieve the Anticipated Revenue associated with the new Mooring License Programi
No revenues were recorded to this account
$92,000 $112,000 $124,000
Achieve Occupancy– Mooring License Program Program was implemented late in the fiscal year
85% 90% of 17 moorings in the program
90% Occupancy
Community Engagement: Public appearances at which the audience is educated on the “clean,
safe and well-enjoyed” mission and progress toward delivering on that
mission
14 events 10 events 8 events 6 events
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Performance Measure
Actual FY 23-24
Estimated FY 24-25
Projected FY 25-26 Target
Removal of hazards,
debris, and trash removal from the harbor
We were not
weighing the debris we collected
2,151.8 lbs
removed
1,500 pounds 900 lbs – based
on implementation of upper bay trash interceptor
i The mooring license program was established in mid-year in FY23-24 and prior data is not available.
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Department
Human Resources
Summary of Notable Accomplishments During Fiscal Year 2024-25
•Successfully recruited over 200 new employees.
•Completed four Request for Proposals (RFPs) and executed multi-year contracts.
•Implemented an efficient reference check platform.
•Compiled department videos and photos to increase recruitment efforts on social media.
•Implemented systematic Human Resources Information System (HRIS) auditing protocol
for improved operations.
•Transitioned to a paperless Personnel Action Form (PAF) processing system, including
interdepartmental document exchanges.
Budget Highlights
•Expand the employee Wellness Program.
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
•Assist with labor negotiations to secure successor Memorandum of Understandings
(MOUs).
•Continue annual audits for Benefits administration.
•Review and improve efficiencies with the Safety Program.
•Continue to identify opportunities of paperless operations to contribute to decreasing
carbon footprint.
Department Performance Measures
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target
Recruitment Length (Non-Continuous; from opening date to first eligible
list date; measured in business days) 28 days 32 days 32 days 32 days
Percentage of employees who positively rate
workshops being valuable.
(Trainings include PowerPoint, Word, Excel, DISC, presentation skills, etc.)
97% 99% 99% 100%
Percentage of hiring managers who positively rate their experience with the hiring process. 94% 94% 94% 100%
62
Department
Library Services
Summary of Notable Accomplishments During Fiscal Year 2024-25
•We launched a new Special Delivery Program to deliver library materials to Newport
Beach residents who are new parents or primary caregivers. There are only a handful of
libraries in the United States that offer this service.
•Started a seed library at Mariners, which has seen over 1,000 checkouts in its first six
months.
•Outreach efforts have doubled since FY23-24. A new library laptop has allowed staff to
issue library cards offsite.
•A new online reservation system launched for Passport appointments, streamlining the
process and making it more user friendly.
•A new projector was installed in the children’s programming area at the Central Library to
allow for greater flexibility for programming, specifically author events.
Budget Highlights
•In collaboration with Finance, a review of the City Library Rents, Fines, and Fees was
conducted and adopted.
•Council approved a three-year rotation for the Sculpture Exhibition which maintains the
integrity of the program while being fiscally responsible.
•Construction on the new Balboa Library/Fire Station 1 to begin.
•Project Adult Literacy is anticipating a grant from the California Library Literacy Services
division to augment the funding for this program.
•The library also anticipates receiving additional funding from the Newport Beach Public
Library Foundation, Friends of the Library, and the Arts Foundation to help fund programs
and materials.
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
•Develop new programming ideas for Witte Hall space.
•Expand the collections and what types of materials are offered.
•Determine what programs and services can be offered offsite for patrons on the Peninsula
during the closure of the Balboa Library.
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Department Performance Measures
Performance Measure Actual
FY 23-24
Estimated
FY 24-25
Projected
FY 25-26 Target
Goal: Increase awareness of the Library
Door Counts 653,667 673,277 693,475 3% increase
Average number of
attendees for Outreach
programs
50 programs with
an average of 203
at each = 10,181
total
50 programs
with an
average of
209 at each =
10,486 total
50 programs
with an
average of 216
at each =
10,800 total
3% increase
Website Visits 918,151 945,695 974,065 3% increase
Mobile app usage 176,851 182,156 187,620 3% increase
New eNews subscribers 2,955 3,043 3,134 3% increase
Number of New Resident
Postcards Mailed
1,227 (three
quarters)
1,416 N/A This is dependent on
how many people
move into our service
area
Goal: Increase use of Library services and materials
Library cards issued 9,177 9,268 9,361 1% increase
Checkouts 1,213,486 1,225,620 1,237,876 1% increase
Average number of
attendees for all
programs
1,009 programs
with a total
attendance of
109,729 = 109
attendees per
program
1,009
programs with
a total
attendance
110,826 = 110
attendees per
program
1,009
programs with
a total
attendance
111,934 = 111
attendees per
program
1% increase
Goal: Advance digital and traditional literacy skills across all ages
Computer Use Sessions 40,010 40,410 40,814 1% increase
Digital Library Use 263,109 265,740 268,397 1% increase
Reading challenge
program active
participants
3,012 3,042 3,072 1% increase
Checkouts 1,213,486 1,225,620 1,237,876 1% increase
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Department
Police Department
Summary of Notable Accomplishments During Fiscal Year 2024-25
•Established a new Quality of Life/Homeless Liaison unit using existing personnel
resources
•Adjusted patrol procedures to enforce new public camping and public conduct ordinance
•Recruited and appointed three new Civilian Investigators to staff the Crime Information
Center (CIC)
•Established the CIC using existing infrastructure
•Procured and implemented the Flock ALPR system and established policies and
procedures for its use
•Procured and implemented the Fusus intelligence platform and began community
outreach for integration of private CCTV systems
•Implemented smart phone stipends for all field personnel and detectives to enable better
access to technology systems and investigative resources
•Procured and implemented a new virtual use-of-force training system
•Established a new Drone-As-First-Responder program to be operated from the CIC,
including evaluation, procurement and implementation
•Created an ancillary drone program for critical incidents and directed enforcement
•Provided new access to subscription databases for commercial ALPR data, cell phone
information and photo recognition
•In 2024, volunteers provided 5,289 hours of service hours
o Conducted vacation checks
o
o Distributed 3,773 crime alert door hangers
o Administrative support such as storekeeping, IT operations, fleet maintenance
•Received $360,000 in Office of Traffic Safety grant funds to impact traffic safety priorities
Budget Highlights
•Added new funding to support ongoing technology initiatives
o Expanded Flock ALPR data storage to one year (from 30 days)
o Access to law enforcement databases for stolen personal property and related
photos and suspect information and nationwide alerting
•Utilized $50,000 in Asset Forfeiture funding for continued support of CIC real-time crime
analysis and investigative tools
•Expanded funding for Animal Control wildlife rehabilitation
•Added $48,000 new funding to train and equip a Tactical Emergency Medical Services
team to treat persons seriously injured in critical incidents
•Replaced gas masks issued to police officers and sergeants
•Added one additional patrol vehicle for the new Quality of Life/Homeless Liaison unit
•Installed new data modems in patrol vehicles to support in-car and body worn camera
video
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Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
•Maintain excellent response times by responding to Priority 1 calls for service within an
average of three minutes, 15 seconds and Priority 2 calls for service within six minutes
•Expand investigators’ access to important law enforcement databases
•Establish field operations unit to support CIC and crime analysis-directed enforcement
•Fully implement the Drone-As-First-Responder program with 2 minute, 30 second
response time to Priority 1 and Priority 2 calls for service
Department Performance Measures1
Performance Measure Actual 2023 Actual 2024 Projected 2025 Target
Percentage of all 911 calls answered within 15 seconds 99.85% 99.84% 99.80% 95%
Average response time for Priority 1
calls 3:00 2:56 3:15 3:15
Average response time for Priority 2 calls 5:57 5:53 6:00 6:00
Number of phone calls handled in Dispatch 169,371 163,030 160,000 N/A
Total calls for service (dispatched and field-initiated) 101,946 99,093 98,000 N/A
Arrests 2,565 3,218 2,800 N/A
Investigative Clearance Rate (percentage of criminal cases closed) 45.7% 54.5% 50% 45%
Social Media posts 210 210 200 200
Crime Alerts issued 94 78 80 80
Note: Measures reflected are in calendar year
66
Department
Public Works
Summary of Notable Accomplishments During Fiscal Year 2024-25
•Completion and Opening of Sunset View Park and connecting Pedestrian/Cyclist Bridge
and Water Trash Wheel Ribbon Cutting
•Organizing several popular public events including Arbor Day Tree Planting, Two
Ewaste/Document Shredding/Compost or Mulch events, Touch-a-Truck
•Completion of both the Balboa Marina and 29th St. Public Piers in the Harbor
•Completion of the west Newport Beach Sand Fill/Nourishment/Reshaping Project
•Commenced Construction on the New Lecture Hall and Lower Harbor Dredging (in
2025)
Budget Highlights
•Facility Consolidation
•Balboa Yacht Basin Dredging
•Enhancement to wildfire mitigation
•Redefining water quality team due to attrition while consolidating sustainability operations
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
•Consolidate and upgrade the facility maintenance of all the Library and
Recreation/Community Center Buildings under one Facility Maintenance Group
•Completing Design and Permitting, and Starting Construction on the Balboa Library and
Fire Station Building Replacements
•Prepare and Lobby the Federal Government for ~ $50 million to Design/ConstructionStage 14 Ocean Beach Nourishment and Groin Maintenance
•Reduce Refuse Landfill Tonnage and Increase Organic Material Diversion and Reuse
over prior years values
67
Department Performance Measures
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target
Percentage of CIP projects started within 60 days of the Master Schedule 79% 89% 80% 80%
Percentage of CIP projects completed within 10% contingency 79% 80% 80% 80%
Percentage of street closure permits issued within 24 hours 90% 85% 85% 80%
Percentage of PW related Quest (work order) tickets completed within 48 hours N/A 80% 85% 80%
Percentage of refuse collected that is diverted (recycled or composted) 44% 45% 50% 50%
Percentage of fleet preventative maintenance completed on schedule 75% 80% 85% 80%
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Department
Recreation & Senior Services Department
Summary of Notable Accomplishments During Fiscal Year 2024-25
1. Completed construction of a universally accessible playground at San Miguel Park.
2. Replaced park assets identified in the Parks Maintenance Master Plan including fencing
and shade elements.
3. Implemented an Adaptive Sailing Program in partnership with Orange Coast College.
4. Piloted installation of youth sports AEDs at two athletic fields to comply with AB1467.
5. Received $46,000 in grant funding from the CA Department of Boating and Waterways
to fund program enhancements and replacement of sailing equipment.
6. Completed Phase 1 of the OASIS Senior Center LED lighting retrofit.
Budget Highlights
1. Reclassified Lead Park Patrol Officer to Recreation Supervisor and reclassified Park
Patrol classifications to Assistant Recreation Coordinators to improve operations,
oversight recruitment, and overall service.
2. Added new revenue, expenditures and staffing to facilitate rentals of the Witte Lecture
Hall.
3. Assumed management and registration of the OASIS garden memberships from the
Friends of OASIS.
4. Applied for CA Department of Boating and Waterways grants to fund program fleet
refurbishment, safety equipment and adaptive sailing scholarships.
5. Transition community center facility maintenance expenditures and oversight to Public
Works Department July 2025.
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
1. Design improvements at Bonita Creek Park including synthetic turf replacement and
LED athletic field light upgrade.
2. Market rentals and schedule use of the Witte Lecture Hall in anticipation of opening in
Spring 2026.
3. Plan and design an aquatic facility at Lower Castaways with a 50-meter pool, therapy
pool, splash pad and community room.
4. Renovate Spyglass Hill Park playground and incorporate a shade element.
5. Consider community impacts and demand for pickleball lights at Newport Coast
pickleball courts.
6. Continue to support youth sports organization’s installation of AEDs at athletic fields to
comply with AB1467.
7. Replace park assets identified in the Parks Maintenance Master Plan.
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Department Performance Measures
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target
Recreational Program Attendance/Registrations 337,670 347,800 (+3%) 358,234 (+3%) 373,183 +3.00% from
prior year
Senior Transportation Participants 10,190 10,495 (+3%) 10,810 (+3%) 11,000
Recreational Classes Offered 3,795 3,700 3,800
(+3%)
3,800
Satisfaction with Recreation Programs (1-5) 4.4 4.5 4.5 4.65
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Department
Utilities Department
Summary of Notable Accomplishments During Fiscal Year 2024-25
•Secured land and a Laguna Beach partnership for development of a new water well in
Fountain Valley
•Implemented new software to identify private water leaks
•Implemented a sewer lateral inspection program
Budget Highlights
•Reclassify Equipment Operator positions to Utilities Specialist series positions
•Reclassify Department Assistant position to Assistant Management Analyst position
•Increase sewer system video inspection program
Departmental Goals/Objectives for Upcoming Fiscal Year 2025-26
•Design and enter into a Cooperative Agreement for the new water well project
(groundwater) in Fountain Valley
•Navigate new onerous “Making Conservation a Way of Life” State regulations
•Expand private water leak detection and notifications to residents
•Transition of oil field operations from our long-time operator to a new contract operator.
•Implement new theft deterrent systems for street lighting wiring
•Implement a new pipeline testing program
Department Performance Measures
Performance Measure Actual FY 23-24 Estimated FY 24-25 Projected FY 25-26 Target
Percentage of groundwater pumped 1 78% 80% 80% 85%
Percentage Water Fund cash reserves vs. goal 95% 66% 60% 100%
Percentage of sewer mainlines
cleaned annually 2
75% 75% 75% 75%
Percentage Sewer Fund cash reserves vs. goal 37% 12% 9% 100%
Percentage of streets swept on schedule 3 95% 95% 98% 100%
Percentage/Number of graffiti incidents removed within 24-hours of notice 95% / 6,588 95% / 7,400 95% / 7,500 100% / 7,500
Percentage/Number of streetlights repaired within 48-hours of notice 95% / 510 95% / 350 95% / 350 100% / 350
1.Groundwater pumped is approximately 50% less expensive than imported Metropolitan Water District water. The new allowable
groundwater pumping percentage is 85% raised from 77% in early 2023. The Utilities Department’s water division largest expense is
the cost to pump or purchase water and maximizing pumping is one of the Department’s top priorities to keep the water rates as low
as possible.
2.Sewer main line cleaning is the best way to prevent sewer spills and protect the water quality of Harbor and Beaches. The Utilities
Department wastewater division’s primary focus is the regular (monthly, quarterly and annual) inspection and hydro-jetting of the
sewer mainlines to remove grit, grease, roots and blockages.
3.Streep sweeping is the largest General Fund operation within the Utilities Department. Sweeping is another important way to
reduce trash and pollutants from entering the Harbor and beaches. Delays to street sweeping most often are caused by weather
delays.
71
CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT
Agenda Item No. 6B
April 10, 2025 TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE
FROM: Finance Department
Jason Al-Imam, Finance Director/Treasurer 949-644-3123 or jalimam@newportbeachca.gov SUBJECT: BUDGET AMENDMENTS FOR QUARTER ENDING MARCH 31, 2025
EXECUTIVE SUMMARY
The purpose of this memorandum is to report on the budget amendments for the third
quarter of Fiscal Year 2024-25. All budget amendments are in compliance with City Council Policy F-3, Budget Adoption and Administration. DISCUSSION
City Council Policy F-3, Budget Adoption and Administration, identifies how appropriations can be transferred, increased or reduced. The Finance Committee reviews a quarterly report of City Council and City Manager budget amendments including their effect on fund balance. Please find the list of budget amendments included as Attachment A.
Prepared by: Submitted by:
/s/ Anthony Alannouf
/s/ Jason Al-Imam
Anthony Alannouf Jason Al-Imam Budget Analyst Finance Director/Treasurer
Attachment: A. Budget Amendments Fiscal Year 2024-25 Quarter Ending March 31, 2025
72
ATTACHMENT A
BUDGET AMENDMENTS FISCAL YEAR 2024-25 QUARTER ENDING MARCH 31, 2025
73
Q3
BA #Date
Amendment
Type Fund Number Fund(s)Revenues Expenditures
Net Effect on Fund Balance
Increase/(Decrease)Department Explanation
050 01/08/2025 City Council 010 GENERAL FUND 50,000.00$ -$ 50,000.00$ RSS
To recognize revenues from a grant provided by Hoag Memorial Hospital Presbyterian’s Community Benefit Program for OASIS Senior Transportation.
051 01/21/2025 City Manager 135 CONTRIBUTIONS FUND 1,842.44$ 1,842.44$ -$ Public Works
To increase additional revenue and expenditure
appropriations for the Water System Rehabilitation project (25W05) that investigates and constructs various city water infrastructure elements (pipelines and valves) that need rehabilitation and/or replacement.This increase is due to the
cost of work exceeding higher than expected. The
developer has afreed to pay the additional cost. See AA-033.
052 01/23/2025 City Council 010 GENERAL FUND 57,800.00$ 57,800.00$ -$ PD
To increase revenue estimates and expenditure appropriations to accept a grant for the National
Highway Traffic Safety Adminstration (NHTSA)
Illegal Passing of Stopped School Buses - High Visibility Enforcement (HVE) Pilot Project.
010 GENERAL FUND -$ 425,055.00$ (425,055.00)$
012 GENERAL FUND CAPITAL PROJECTS 425,055.00$ 425,055.00$ -$
054 02/03/2025 City Manager 010 GENERAL FUND 3,557.00$ 3,557.00$ -$ PD
TO increase additional revenue and expenditure appropriations relating to reimbursement for training from the City of Los Angeles in the Detectvies division. The training reimbursement is
for Jennifer Kresge and Cynthia Carter.
055 02/12/2025 City Council 010 GENERAL FUND -$ 497,516.00$ (497,516.00)$ PD
To increase expenditure appropriations in the Detective Division for the Drone Program that will
cover agreement costs, first-year set-up costs for
site preparationa dn equipment and ongoing costs for utilities.
056 02/20/2025 City Manager 010 GENERAL FUND -$ -$ -$ CMO/CDD/LIB
Transfer of funds from Salary and Benefits
accounts (7*) to Maintenance and Operational
accounts (8*) to cover contracted temporary staff expenses being re-allocated to the proper expenditure category.
058 02/27/2025 City Manager 010 GENERAL FUND 26,982.01$ 26,982.01$ -$ Fire
To increase revenue and expenditure
appropriations for the City's CERT program from the CERT Donations Deposit account. Funds to be allocated to the accounts detailed below. Once approved, JV to follow.
City of Newport BeachFiscal Year 2024-25 Budget AmendmentsQuarter Ending March 31, 2025Reporting Quarter:
02/11/2025053 City Council RSS To transfer FY2024-25 year-end surplus funds to the GF CIP Fund for Buck Gully Fire Risk Reduction.
74
4/10/25
Thursday, May 8, 2025
Follow-Up Discussion of Proposed FY 2025-26 Budget Discussion
Staff will provide the Committee with a copy of the Fiscal Year 2025-26
proposed budget document. Should the Committee wish to continue April's
discussion of the Fiscal Year 2025-26 budget, this is also an opportunity to do
so.
Financial Statement Auditor's Communication with the Finance Committee acting
as the City's Audit Committee Presentation
The City's external auditors, Davis Farr LLP, will discuss with the Audit
Committee the planned scope and timing of the financial statement audit for the
Fiscal Year Ending June 30, 2025.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
Tuesday, May 27, 2025 Joint City Council and Finance Committee Study Session Presentation Staff will present the Fiscal Year 2025-26 proposed budget to the City Council
and Finance Committee.
Thursday, May 29, 2025 Committee Recommendation to Council for the FY 2024-25 Budget Discussion
Discussion of the Study Session earlier in the week and formulation of any
recommendations to be presented to the City Council at the budget public
hearing in June.
Third Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected Fiscal
Year 2024-25 budget performance.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
Thursday, September 11, 2025
Annual Review of Investment Performance Presentation
The City's investment advisor, Chandler Asset Management, will report on the
performance of the City's investment portfolio for the fiscal year ending June 30,
2025.
Annual Review of Investment Policy Presentation
Staff will provide a presentation regarding any proposed changes to the City's
Investment Policy prior to the Investment Policy being approved by the City
Council.
Budget Amendments for Quarter Ending June 30, 2025 Receive and File Staff will report on the budget amendments from the prior quarter.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
Thursday, October 9, 2025
Overview of Sales Tax Allocations for Automobile Sales Presentation
The City's sales tax consultant, HdL Companies, will provide the Committee
with an overview of how sales tax is allocated for automobile sales, with a
particular focus on non-traditional auto dealerships, such as Tesla, which has
adopted a direct-to-consumer sales model.
Year-End Budget Results and Surplus Allocation Presentation
Staff will provide a presentation regarding the year-end budget results for Fiscal
Year 2024-25 and recommendations for allocation of any year-end budget
surplus.
Budget Amendments for Quarter Ending September 30, 2025 Receive and File Staff will report on the budget amendments from the prior quarter.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
September 2025
October 2025
August 2025
Committee Recess
Newport Beach Finance Committee Work Plan
June 2025
Committee Recess
Committee Recess
July 2025
May 2025
175
4/10/25
Newport Beach Finance Committee Work Plan
Thursday, November 13, 2025
First Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected Fiscal
Year 2025-26 budget performance.
OPEB Actuarial Valuation Report Update Presentation Staff will provide the Committee with an overview of the Fiscal Year 2024-25
actuarial valuation report prepared by the City's actuary.
CalPERS Update Presentation
Staff will provide the Committee with an overview of the data from the latest
actuarial reports from CalPERS as well as their impact on prior projections of
the paydown of the City's unfunded pension liability.
Internal Audit Program Update Presentation Presentation of internal audit reports, findings, and recommendations from the
Fiscal Year 2024-25 audit program.
Work Plan Review Receive and File Staff will report on the upcoming Finance Committee items.
November 2025
December 2025
Committee Recess
276