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Home My WebLink AboutSS2 - FY 13-14 Budget Overview - PresentationFY 2013 -2014 Proposed Budget Overview (Continuation of May 14t" Study Session) SEW PORT Dave Kiff, City Manager Dave: Webb,, Public Works Director Dan Matusiewicz, Finance Director Council Study Session May 28, 2013 Budget Summary • Budget is Balanced E %PEI®IIWEE Increases our investments in community serving facilities and beautification projects • Puts more police officers on the street while still reducing total staffing levels Today's Focus 1. Special Projects /CIP Follow -Ups • Balboa Theater • LED Lighting • Back Bay View Park • Crystal Cove Historic District • Income Property — Newport Pier • Arts Master Plan • BIDS • N BTV • Film Permitting 2. Facilities Financial Planning Program • Projects, Funding, Debt 3. Reporting of Council Discretionary Funds 4. Reserves 5. Summary & Conclusion 6. Budget Checklist Balboa Theater • Background: — City purchased in 1998 for $480,000 — Renovation plans complete, Coastal Permit issued. — Total fund raising need = $6M: • $5.5M construction costs, including contingency • $0.5M initial operating reserve • Foundation has $1M cash and pledges in hand —Theatre Foundation to have GMP construction contract within 30 days, manage construction and take all operating risk thereafter Balboa Theater (cont.) • City Offers $3M "Challenge Loan" initially using existing FFP Reserve, to be replenished from $19M Irvine Co fee payment in May, 2014. • Loan Terms: — Repayable over 10 years, no interest • $11VI principal at end of Year 6 • $21VI remaining principal at end of Year 10 • City owns land, and will have 1St mortgage on all improvements E Balboa Theater (cont.) • Challenge Loan contingent Upon: — Business plan acceptable to City, written by expert 3rd party — Foundation to raise additional $2M private money, to achieve total $3M in matching funds — Revised land lease acceptable to City — Foundation to add 3 new expert directors acceptable to City, and commit to hire expert full time executive director by end of 2013 — No advance of City money until conditions are met Street Light Circuit Rehabilitation Next Two Circuits (last two incandescent light circuits) • Circuit 75 - Westcliff —East Side Area • 91 lights Estimated Rehabilitation Cost = $455,000 • Circuit 79 - Irvine Ave Area — Santiago to Santa Isabel • 38 lights Estimated Rehabilitation Cost = $190,000 — Estimated Total Project Cost $645,000 • Prior Six Circuit Rehabilitations • Average Energy Reduction = 47% • Average Payback Period = 15.1 Years • Average Cost per Streetlight = $5,889 • LED Lamp Fixture Replacement Only • Average Payback Period (energy & maintenance) = 6 Years Back Bay View Park Enhancement $350,000 Recommended (CIP page 40) JAMBOREE ROAD • Enhance Planting • Improve Viewing Areas • Improved Park Signage • Amenities for Cyclists • Possible Public Art Piece • Improve Parking for Visitors • Enhanced Edge Treatment to give it a more "Park Like Appearance O Cove/ To Corona del Mar Historic District Entrance Station Crystal Cove Historic District Entrance Station Los Trancos i Parking Note: Lot closetl to entry IGPr Gam Signal and Crosswalk ces�. c N° Pedestrian Tunnel (Closed during wet weather. Use crosswalk on East Coast Hwy.) The Park 15 min. Check -in Parking Stairs J Cultural Center i Dorm-Style Visitor,' Special Cottages Center Events �l Deck A D.A. Parking j- ® 39 ® 0 Stair OOO 10 9 8 7 6 O 12 * 2E OOOO 11 v\ -v DE North Beach Cottages: Future Restoration Project CRYSTAL COVE STATE PARK HISTORIC DISTRICT Please remember: • Alcohol prohibited in park except in Individual cottages and at The Beachcomber Cara. • Parking permitted in designated spaces only. • No dogs on beach or in cottages. Special Event Deck Stairs PHASE 11 - RESTORATION Onesearci c� CRYSTAL COVE BEACH COTTAGES MADE POSSIBLE BY CRYSTAL COVE ALLIANCE �r oas v 111x1:1,1211fj (Map not to scale) DAY USE VISITORS 6AM - 10PM In case of emergency. dial 911 ❑Overnight Rental Cottages OFuture Restoration QPark Operations OShuttle Stop Accessible Feature (A.D.A.) Restaurants (Menus may vary) ® Public Restrooms * Special Event Sites ■Guest Services/ Exhibits 07 Crystal Cove Historic District (cont.) • Phase I Restoration — 28 cottages, $14.3 Million Phase II restoration — Educational commons, "Beaches" cottage, garages, more. $6.7 million Phase III restoration — 17 cottages, $20.0 million (estimated) + infrastructure and overall landscaping Occupancy Rate = 98 Typical Nightly Rental Charge = $ 240 per night Crystal Cove Historic District (cont.) • Concept: — Investment today in CCHD's cottages = more occupancy and more TOT — City could invest $20K /year to assist in funding Phase III's renovations • Phase III renovations— 17 cottages — Total Estimated Cost = $20.0 Million — Timing = Planning in progress- build out 4 -5 years Newport Pier Concession Building • Currently Closed and Secured • Structure Severely Deteriorated and Out of Code Compliance • Current Building Cannot Be Used Unless Extensive Renovations Are Performed a: . V Cost to Remodel May Exceed Cost to Reconstruct a New Building Recommend Removal Approx. $15,000: Recommend including building demolition with Ocean Pier Maintenance Work (CIP page 50) Arts and Cultural Activities • Arts and Culture Master Plan — $100K (estimated) — Request for Proposals /Qualifications 1 Arts and Cultural Activities (cont.) • Assist City to: — Develop broad arts and cultural master plan, assisted by Arts Commission, plus public input — Plan to cover all art forms (visual and performing), arts and cultural facilities, museums, etc. — Develop /refine an Art in Public Places program — How best to manage (maintain, protect, show) public art — How to structure recurring funding for all of the above City Support for Associations & BIDs • All four groups: — $40,000 per year for marketing & improvements — Agreements for up to five years — $10,000 extra in year one if they work with Newport Beach & Company for branding / websites Business Improvement Districts • Marine Avenue & Balboa Village — Disestablishing as BIDs — Forming independent merchants associations • Corona del Mar & NB Restaurant Assoc. — Remaining BIDs — Assuming more administrative responsibility NB TV Proposal: — Operations to Newport Beach and Co. — $150,000 /year, funded by Cable Franchise Fees • City would retain remainder for equipment maintenance — City retains residual to maintain Council Chambers electronics /AV /Edit Bay — NB &Co has a "must carry" list of shows, remainder of airtime is up to NB &Co, but must adhere to City Attorney's guidelines re: programming Examples of "Must Carry" • City Council meetings (live + one repeat) plus: — Up to 12 other shows /year at City's discretion. • Key issues in the City — Government profile /Meet the Mayor (4x year) — Special citywide events /celebrations • July 4, Boat Parade, Balboa Island Parade, more — Pet Adoption (more timely? Shorter ?) • Bulletin Board, if airtime • Remainder is up to NB &Co Film Permitting /Liaison • Process to date: — Request for Proposals — Received 2 responses • Film LA • Newport Beach & Co. Film Inc. OM _ v 19 Film Permitting /Film Liaison • Film LA provides: — Portfolio of public spaces in NB — Film LA's permitting system — On -site supervision, as needed — Verification of insurance, etc. — No charge to city Film Inc. Film Permitting/ Film Liaison (cont.) • Newport Beach and Co provides: — Dedicated marketing person, marketing support — Full integration of film activity with City brand /identity — Enhanced City- specific photo portfolio — City pays NB &Co approx. $100k /year for this City - specific marketing oversight �'ISI "I '4 ° a (CEO Facilities Financial Planning (FFP) Priority Projects Est. Project Start Priority Projects Cost Date Marina Park 30,000,000 2013 9 Sunset Ridge 11,000,000 2013 West Newport Land Purchase 4,308,199 2013 Fire Station 5 - CDM 4,225,000 2014 Lifeguard Head Qtrs 1,500,000 2014 -• "' ;__, - - -. -- City Hall Demo 100,000 2014 West Newport Comm Ctr 10,000,000 2015 „. Fire Station 2 - Lido 4,225,000 2015'+'` Park Placeholder 2,000,000 2015 Big Canyon Aux. Yard 1,000,000 2015 Fire Station 1 - Peninsula 4,225,000 2019 Police Station 64,375,000 2020 Total 136,958,199 COP Debt Service 2010 Civic Center COP Debt Service Estimates FY 2013-14 2010 Civic Center COP Debt Service Payment 2010 Civic Center COP BAB Subsidy Net Debt Service payment Net Debt Service as a %of General Fund Revenues Payments 101590,017 (2,405,901) 8,184,116 4.9% COUNCIL DISCRETIONARY FUNDS 24 Council Discretionary Funds Council Discretionary Fund Council District Appropriation YTD Spent Balance Michael F. Henn - District 1 $ 6,000 $ 3,775 $ 2,225 Tony Petros - District 2 6,000 500 5,500 Rush N. Hill, II - District 3 6,000 5,996 4 Leslie Daigle - District 4 6,000 5,918 82 Edward D. Selich - District 5 6,000 1,000 5,000 Nancy Gardner - District 6 6,000 - 6,000 Keith D. Curry - District 7 6,000 6,000 - TOTAL: $ 42,000 $ 23,189 $18,811 Council Discretionary Funds (cont.) Donation American Cancer Society - Relay for Lifel $ Balboa Island Artwalk - Event Sponsorship] Balboa Island Museum - Contribution Balboa Theater - Contribution Balboa Village BI D - Holiday Decorations Bayside Village Homeowners - 4th of July Parade Contribution Bike Safety Fund- Bike Safety Improvements Boys and Girls Club of Eastbluff - Contribution Corona del Mar High School - Fundraiser Crystal Cove Alliance - Contribution Explore Ocean - Contribution Golden Communications Inc - Council Website Maintenance Subtotal: Amount 2,000 500 400 3,500 775 500 500 500 3,000 2,000 1,351 15,094 Council Discretionary Funds (cont.) Donation Mariners Elementary School Foundation - Event Contribution] $ Newport Bay Conservancy - Contribution Newport Beach Chamber of Commerce - Event Sponsorship Newport Elementary School - Fund Newport Harbor School - Event Contribution Newport Harbor Nautical Musuem - Contribution Newport Theatre Arts Center- Contribution Orange Coast Interfaith Shelter- Contribution Southern CA Water Committee - Event Registration TLF Newport Florist - Employee Condolence F Vest -A -Dog Orange County - Police Dog Bullet -proof Vests Women in Government - Event Sponsorship TOTAL: 1 $ Amount 1,000 500 1,500 1,000 500 1,500 500 500 70 96 500 ►1 23,189 SPECIAL EVENT SUPPORT tu Special Event Support - Recommended Art in the Park, Newport Beach Arts Foundation $ 434 Balboa Island Artwalk, Balboa Island Artwalk CdM Christmas Walk, CdM Chamber of Commerce CdM Scenic 5K, CdM Chamber of Commerce Independence Day Parade, Mariners Elementary NB Christmas Board Parade, NB Chamber of Commerce NB Film Festival, Newport Beach Film Festival Newport Beach Restaurant Week, NB Restaurant Assn. BID Newport -Mesa Spirit Run, N -M Spirit Run, Inc. Newport to Ensenada Yacht Race, NOSA Race for the Cure, OC Affiliate of Susan G. Komen Science Saturdays & Sundays at the Back Bay, ExplorOcean Total Proposed Funding 2,000 6,000 17,000 1,000 50,000 125,000 6,000 14,000 10,000 10,000 7,500 $248,934 Special Event Support — Not Recommended Field of Honor, Exchange Club of Newport Beach KOCI Summer Concert, 101.5 KOCI_ -FM NB Summer Concert Series, Omega Events /Hyatt Regency Pacific Coast Triathlon, Pelican Coast Events, LLC Total 2,500 27,000 2.5,000 5,000 $59,500 ABOUT POSITIONS 31 Historical Full Time Positions M 840 82 800 N C y 780 775 N O d c 76_ 74 72 7 680 2003 Historical Full Time Positions 832 833 781 2004 2005 2006 2007 2008 2009 Fiscal Year 805 763 752 2010 2011 2012 2013 2014 Proposed FY 2013 -14 Position Changes THREE -YEAR COMPARISON OF FULL -TIME POSITIONS GENERAL FUND TIDELANDS FUND WATER ENTERPRISE FUND SEWER ENTERPRISE FUND EQUIPMENT FUND INFORMATION TECHNOLOGY FUND FULL -TIME TOTALS PART -TIME TOTALS GRAND TOTAL Original Original Original Variance 2011 -12 2012 -13 2013 -14 from 2012 -13 F/T F/T F/T F/T 670.00 668.00 661.50 -6.50 5.00 4.00 3.00 -1.00 38.00 32.50 32.50 0.00 15.00 15.00 13.00 -2.00 13.00 11.00 11.00 0.00 22.00 21.50 15.00 -6.50 763.00 752.00 736.00 -16.00 123.27 126.14 111.88 -14.26 886.27 878.14 847.88 -30.26 33 ABOUT RESERVES 34 City Reserves, Council Policy F -2 Governmental Fund Balance (Reserves): Classifications Non - spendable Restricted Committed Assigned Unassigned Nature of Restriction Cannot be readily converted to cash Externally imposed restrictions City Council imposed commitment City Manager assigned purpose /intent Residual balance not otherwise restricted Reserve Comparison —All Funds Reserves /Fund Balance General Fund Contingency Other Committed Assignments PERS Rate Reserve Unassigned Facilities Financial Planning Reserve Fund Marina Park Fund Sunset Ridge Park Fund Insurance Reserves Compensated Absences Reserve Information Technology Reserve Equipment Replacement Reserve Total Available Estimated Projected Fiscal Year Fiscal Year 2012 -13 2013 -14 $ 22,134,775 $ 23,526,966 4,056,273 3,551,882 350,000 350,000 5,000,000 4,291,335 22,631,792 25,229,862 26,316,236 17,577,505 (10,688,372) (688,372) (10,859,716) (1,859,716) 22,505,057 22,474,342 3,031,847 2,625,366 6,510,607 4,096,637 16,377,758 17,577,558 $ 107,366,257 $ 118,753,365 Reserve Comparison —All Funds (cont.) Reserves /Fund Balance Estimated Fiscal Year 2012 -13 Projected Fiscal Year 2013 -14 Nonspendable /Restricted: General Fund Affordable Housing $ 2,743,802 $ 4,446,627 Park in Lieu 917,589 - Other Nonspendable /Restricted 10,167,173 10,167,173 Special Revenue Funds 16,364,399 (18,077) Capital Projects Funds 19,663,832 9,128,905 Permanent Funds 6,102,416 6,136,575 Enterprise Funds 8,046,351 13,516,059 Retiree Medical Reserve 3,957,354 6,881,951 Total Unavailable $ 67,962,916 $ 50,259,213 Total Fund Balance - All Funds $ 175,329,173 $ 169,012,579 Funds not used in FY 11 -12 Estimated Surplus in FY 12 -13 Close -Out of FY 12 -13 FY 11 -12 General Fund Assignments • We set -aside $19AM in FY 11 -12. FY 2012 Assignments PERS Reserve $ 5,000,000 Lower Bay Dredging 378007000 Facilities Financing Fund 5,043,503 IT Strategic Fund 3,000,000 Capital Improvement 11638,677 CIP Rebudgets 603,167 Airport Mitigation Efforts 100,000 Fair Value Adjustment 246,118 Total FY 2012 Assignments $ 19,431,465 • We set -aside $19AM in FY 11 -12. Available for Appropriation in FY 12 -13 FY 2012 Assignments (From Prior Slide) Used /Re- Assigned: Rebudgeted CIPs from FY 12 - Expended PERS Reserve - Left Intact Airport EIR - Left Intact Fair Value Investment Adjustment - Released Assignments Available for Appropriations FY 2013 Activity Increase in Revenue Estimates Increase in Retiree Insurance Cost Increase in mandated Revenue Set - Asides Lower Bay Dredging Advance to Tidelands Capital Fund Other Net General Fund Surplus Total Available for Appropriations (FY 12 + FY 13) $ 19,431,465 (603,167) (5,000,000) (100,000) (246,118) $ 13,482,180 $ 6,205,629 (605,000) (225,413) (2,235,689) (452,658) $ 2,686,869 $ 16,169,049 • About $6 million of that was either spent or remains set - aside. Available for Appropriation in FY 12 -13 FY 2012 Assignments (From Prior Slide) Used /Re- Assigned: Rebudgeted CIPs from FY 12 - Expended PERS Reserve - Left Intact Airport EIR - Left Intact Fair Value Investment Adjustment - Released Assignments Available for Appropriations FY 2013 Activity Increase in Revenue Estimates Increase in Retiree Insurance Cost Increase in mandated Revenue Set - Asides Lower Bay Dredging Advance to Tidelands Capital Fund Other Net General Fund Surplus Total Available for Appropriations (FY 12 + FY 13) $ 19,431,465 (603,167) (5,000,000) (100,000) (246,118) $ 13,482,180 $ 6,205,629 (605,000) (225,413) (2,235,689) (452,658) $ 2,686,869 $ 16,169,049 At the end of this year, we have $16.1M available for appropriation. FY 12 -13 Recommendations Total Available for Appropriations (From Prior Slide) Recommendations: 2013 Amendments Transfer to Facilities Financial Planning Reserve Fund Transfer ABLE Proceeds to IT Fund Transfer to Retiree Insurance Fund Transfer for 800 MHZ Equipment Fund Transfer to Facilities Maintenance Fund (FMP) Assignment for Airport EIR Transfer to close -out Back Bay Science Center Fund Total Recommendations Unassigned Fund Balance: Net Increase to General Fund Surplus Beginning Unassigned Fund Balance FY 2013 Ending Unassigned Fund Balance Projection $ 16,169,049 $ (8,543,503) (2,551,815) (1,500,000) (1,000,000) (1,000,000) (250,000) (125,421) $ (14,970,739) $ 1,198,310 21,433,482 $ 22,631,792 • Year -end close envisions sending $14.91M to the above projects /programs and $1.2M to Unassigned Fund Balance Funds not used in FY 11 -12 Estimated Surplus in FY 12 -13 Close -Out of FY 12 -13 PROPOSED FY 13 -14 BUDGET 11 FY 13 -14 General Fund Budget Surplus FY 2013 -14 Revenues: $ 165,872,691 Transfers -In (All Sources) 8,822,921 Adjustments for mandated Set - Asides (3,603,825) Net Revenues $ 171,091,787 Expenditures: $ 155,673,022 CIPs 6,667,630 Transfers -Out FFP 7,000,000 Transfer -Out Equipment Replacement 1,000,000 Net Expenditures $ 170,340,392 Net General Fund Surplus - As Printed $ 751,395 Subsequent expenditure adjustment 17846,675 Adjusted Surplus $ 2,598,070 Less: Checklist Items $ - Net General Fund Surplus FY 14 $ 2,598,070 Beginning Unassigned Fund Balance $ 22,631,792 FY 2014 Unassigned Fund Balance $ 25,229,862 FY 13 -14 General Fund Budget Surplus FY 2013 -14 Revenues: $ 165,872,691 Transfers -In (All Sources) 8,822,921 Adjustments for mandated Set - Asides (3,603,825) Net Revenues $ 171,091,787 Expenditures: $ 155,673,022 CIPs 6,667,630 Transfers -Out FFP 7,000,000 Transfer -Out Equipment Replacement 1,000,000 Net Expenditures $ 170,340,392 Net General Fund Surplus - As Printed $ 751,395 Subsequent expenditure adjustment 17846,675 Adjusted Surplus $ 2,598,070 Less: Checklist Items $ - Net General Fund Surplus FY 14 $ 2,598,070 Beginning Unassigned Fund Balance $ 22,631,792 FY 2014 Unassigned Fund Balance $ 25,229,862 BUDGET CHECKLIST ITEMS 47 Proposed Checklist — General Fund General Fund Operating Surplus - As Printed Expenditure adjustment Adjusted Operating Surplus 1 Supplemental Transfer to FFP Reserve Fund 2 Supplemental Transfer to Facilities Maint Plan Fund 3 Management Compensation Adjustments 4 Part-time Senior Fiscal Clerk salary & benefits at .5 FTE 5 Crystal Cove Cottages - Renovation Support 6 Balboa Island Historical Society 7 CdM Entryway Enhancement Project 8 City Street Light Circuit Rehabilitation 9 City Hall Re -Use Consulting 10 Transition to Cultural Arts Contract 11 Electrical Maint / Repair (Streetlight Energy Efficient Demo) 12 CIP Traffic Operations Support and Contract Support 13 Salaries and Benefits (Admin Staffing Adjustment) 14 Salary Savings 15 Sediment Removal - Selenium at Big Canyon Golf Course 16 Newport Harbor Dredging Permit - RGP54 17 Officer position reclassed to Sergeant (Training Position) Total Checklist Department Amount Administration 751,395 Administration 1,846,675 2,598,070 Administration 1,000,000 Administration 250,000 Administration 35,000 Administration 35,470 City Council 20,000 City Council 15,000 City Council - City Council 645,000 Community Development 50,000 Library & Cultural Arts (68,000) Municipal Operations 50,000 Public Works 350,000 Public Works 76,679 Public Works (76,679) Public Works - CIP 75,000 Public Works - CIP 56,000 Police Department 49,000 2,562,470 Surplus /(Deficit) if checklist is approved. 35,600 PROPOSED BUDGET FOR ADOPTION FY 13 -14 General Fund Budget FY 2013 -14 Revenues: $ 165,872,691 Transfers -In (All Sources) 8,822,921 Adjustments for mandated Set - Asides (3,603,825) Net Revenues $ 171,091,787 Expenditures: $ 155,673,022 CIPs 6,667,630 Transfers -Out FFP 7,000,000 Transfer -Out Equipment Replacement 1,000,000 Net Expenditures $ 170,340,392 Net General Fund Surplus - As Printed $ 751,395 Subsequent expenditure adjustment 1,846,675 Adjusted Surplus $ 2,598,070 Less: Checklist Items $ 2,562,470 Net General Fund Surplus FY 14 $ 35,600 Beginning Unassigned Fund Balance $ 22,631,792 FY 2014 Unassigned Fund Balance $ 22,667,392 Conclusion • Proposed budget is balanced; there is no use of reserves for operating purposes and it: — Increases our investment in community serving facilities and beautification projects — Adds police officers while reducing overall staffing levels (16 full -time and 14 part -time FTEs) — Pension & OPEB costs will continue to be addressed aggressively and comprehensively — Outsourcing and staff reductions will continue Questions &Comments City's budget documents can be accessed at: www.newportbeachca.gov /budget