HomeMy WebLinkAbout17 - Resolution Adopting FY 2013-14 Budgeto �EWPORra CITY OF
NEWPORT REACH
City Council Staff Report
Agenda Item No. 17
June 11, 2013
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3001, dkiff @newportbeachca.gov
PREPARED BY: Dan Matusiewicz, Finance Director
APPROVED: (✓1
TITLE: Resolution 2013 -53: Fiscal Year 2013 -14 Budget Adoption
ABSTRACT:
The City's Charter requires the City Council to adopt an annual budget by resolution each
year prior to June 301h.
RECOMMENDATION:
1. Hold the public hearing on the City Manager's Proposed Budget for Fiscal Year
2013 -14. After reviewing the staff report and taking public input, discuss and accept
Council member recommendations for additions, deletions, or modifications to the
budget checklist.
2. Conduct a straw vote on the budget checklist, including those added to the City
Manager's Proposed Fiscal Year 2013 -14 Budget by Council members during the
public hearing. Based on the straw vote, items approved will be included in the
City's Fiscal Year 2013 -14 Approved Budget.
3. Approve Resolution 2013 -53 adopting the City Manager's Proposed Fiscal Year
2013 -14 Budget, as amended by Items 1 -2 above.
FUNDING REQUIREMENTS:
The City Council, upon adoption of the Budget Checklist as indicated on Attachment A and
the originally proposed FY 2013 -14 Budget Resolution as indicated on Attachment B, will be
authorizing the total appropriations for Fiscal Year 2013 -14. Projected revenues are
expected to balance the proposed operating budget including the attached Budget
Checklist.
Resolution 2013 -_: Fiscal Year 2013 -14 Budget Adoption
June 11, 2013
Page 2
DISCUSSION:
Background
Pursuant to Section 1102 of the Newport Beach City Charter, and Council Policy F -3 titled
Budget Adoption and Administration, the Proposed Budget for the 2013 -14 Fiscal Year was
first submitted to the City Council on May 9, 2013. The City Council held budget study
sessions on May 14, 2013, and May 28, 2013, to review the City Manager's Proposed
Budget for the 2013 -14 Fiscal Year.
The City Manager's Proposed Budget for Fiscal Year 2013 -14 is balanced and reflects the
City Council's commitment to fiscal sustainability and the effective allocation and
management of the City's resources. The proposed General Fund revenue budget is $166
million, an increase of 2.2 %, or $3.5 million, over the amended Fiscal Year 2012 -13 General
Fund budget. The increase appears modest due to certain one -time revenue sources
received in Fiscal Year 2012 -13, which are not expected to reoccur in Fiscal Year 2013 -14.
These include the distribution of our equity interest in the Airborne Law Enforcement joint
powers authority of $2.5 million, the distribution of unencumbered proceeds from a County
redevelopment agency (RDA) of $1.9 million, and certain other revenue. The General
Fund's top three revenue sources are projected to increase as follows: secured property
tax 4 %, sales tax 5.5 %, and transient occupancy tax 7 %. The total revenue for all funds is
projected to increase 9% over the revised Fiscal Year 2012 -13. The backdrop for these
positive developments is the increasing vitality of our local economy. Housing demand and
values are increasing as are the number of new jobs in Orange County, thereby resulting in
greater consumer confidence and spending.
The recovering economy and the Council's guidance in recent years provide us with the
opportunity to commit resources that are in furtherance of the City's policies, goals, and
priorities. The Fiscal Year 2013 -14 proposed General Fund expenditure budget, including
capital improvements, is projected at $162.3 million, an increase of 3.2 %, or almost $5
million, over the amended Fiscal Year 2012 -13 General Fund budget. Total proposed City
expenditures in Fiscal Year 2013 -14, including debt service and capital projects, is $278.9
million. In summary, the balanced budget that you see in Fiscal Year 2013 -14 lays the
groundwork for a stronger City government in the following key areas:
Vital Support System for Law Enforcement
• A new Crime Suppression Unit consisting of three officers and one Sergeant will
mitigate State legislative action that shifts, and thereby will result in the early release
into our community of, convicted felons from State prisons to County jails.
• A reinvestment in the 800MHz system will provide vital communication support to
public safety and other emergency operations.
Community Serving Facilities and Basic Infrastructure
• A General Fund contribution of $7 million to the Facilities Financial Planning Reserve
will fund facility projects such as: Marina Park, Sunset Ridge, Lifeguard
Headquarters, and the Corona del Mar Fire Station.
Resolution 2013 -_ Fiscal Year 2013 -14 Budget Adoption
June 11, 2013
Page 3
A General Fund contribution of $5 million to the City's Capital Improvement Program
will provide for Balboa Boulevard landscape rehabilitation, street and sidewalk
maintenance, park structure replacements., and other projects.
Reducing the Cost of Personnel
• A reduction of 16 Full -time and 14 Part-time FTE positions (net of the law
enforcement personnel additions mentioned above) will reduce the cost, while
maintaining the same level, of service delivery.
• Increased pension contributions from City employees and lower tier benefits for new
employees will reduce the cost of personnel over the long -run.
• Accelerated payments on pension unfunded liability and retiree insurance unfunded
liability will reduce the cost of the City's long -term liability.
Better and Smarter Technology — Funding for the following technology enhancements will
allow the City to function with greater efficiency:
Integrated financial and human resource, or "Enterprise Resource Planning" (ERP)
system.
• Computer -aided dispatch system.
• Online permitting system.
• Web and phone applications to provide the community with convenient access to the
City's business applications.
Budget Checklist
The City Manager is recommending changes to the Proposed Fiscal Year 2013 -14 Budget
released on May 9, 2013. These changes are found in the Budget Checklist on Attachment
A, which is an itemized listing of all proposed budget checklist items. As stated in City
Council Policy F -3, all Council directed changes to the City Manager's Proposed Budget
shall be added to the Budget Checklist. The Mayor will call for a straw vote on each
checklist item during the public meeting.
The expenditure appropriations from the Proposed Fiscal Year 2013 -14 Budget and the
Budget Checklist are summarized as follows:
FY 2013 -14 Proposed
Expenditures General
Fund
Proposed Operating & CIP Budget
Operating Budget Expenditure Adjustment
Supplemental Operating Expenditure Budget Requests
Supplemental CIP Expenditure Budget Requests
CIP Rebudgets'
Total FY2013 -14 Expenditure Budget & Checklist
$ 162,340,392
(1,846,675)
1,916,470
720,000
175.252
$ 153,305,438
All Other
Funds
$ 116,577,484
2,762,721
459,786
7,518,740
$ 127,318,731
Total All Funds I
5 278,917,876 1
4,679,191
1,179,786
7.693.992
$ 290.624.170 1
' A rebudget moves a capital improvement project appropriation from one fiscal year to the next as most capital
projects span more than one fiscal year.
Resolution 2013 -_. Fiscal Year 2013 -14 Budget Adoption
June 11, 2013
Page 4
The revenues appropriations from the Proposed Fiscal Year 2013 -14 Budget and the
Budget Checklist are summarized as follows:
Proposed Revenue Budget
Supplemental Revenue Estimates
Total FY 13.14 Revenue Budget Checklist
Fund
$ 165,872,691
170,000
$ 166,042,691
Funds
$ 87,831,650
1,459,534
$ 89,291,184
Total All Funds
$.253,704,341
8
It is important to note that the Fiscal Year 2013 -14 General Fund budget is balanced, as
indicated below, with a surplus of $600.
FY 2013 -14 Proposed Budget 8 Checklist - Surplust(Deficit) General
Fund
Operating Surplus - AsPrinted $ 751,395
Expenditure Adjustment. 1,846,675
Proposed Operating Surplus $ 2,598,070
FY 13.14 Checklist Operating Expenditures
$ 1,916,470
FY 13 -14 Checklist CIP Expenditures
720,000
FY 13 -14 Checklist Revenue Estimates
(170,000)
" "FY 13 -14 Adjusted General Fund Transfer to Tidelands
131,000
Checklist Changes that Affect the General Fund
$ 2,597,470
Adjusted Operating Surplus $ 600
-'The General Fund transfer of $131,009 to the Tidelands Fund is needed to fund additional contemplated Tidelands expenditures
on the checklist.
Staffing Changes
The City Manager's Proposed FY 2013 -14 Budget includes funding for 736 full -time and
111.88 full -time equivalent (part-time) positions, a reduction of 16 full -time and 14.26 full -
time equivalent positions from FY 2012 -13. This is the result of continued departmental
restructuring, realignment of functions, and contracting out. Four additional position
changes are being submitted for consideration on the Budget Checklist:
Full -time Position Budget Checklist Changes:
Add one Administrative Assistant in Public Works
Delete the Cultural Arts Coordinator position in Library & Cultural Arts
Full -time Equivalent (part -time) Position Budget Checklist Changes:
Add .5 FTE Senior Fiscal Clerk in Finance /Revenue
Delete .47 FTE Office Assistant in Public Works
Resolution 2013 -_: Fiscal Year 2013 -14 Budget Adoption
June 11, 2013
Page 5
If the position changes on the Budget Checklist (Attachment A) are approved as listed, it will
result in funding for 736 full -time and 111.91 full -time equivalent (part-time) positions, the
lowest staffing levels in more than 10 years.
Planning Commission Review
The Planning Commission agenda for their June 6, 2013, meeting includes their review of
the Proposed Fiscal Year 2013 -14 Capital Improvement Program to determine consistency
with the General Plan.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment) and
15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential
for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the
meeting at which the City Council considers the item). The Public Notice for this item was
published in the Daily Pilot on June 1, 2013.
Prepared by:
Z11=
Submitted by:
Dan Matusiewicz Dave Kiff U
Finance Director City Manager
Attachment: A. FY 2013 -14 Budget Checklist
B. Resolution 2013-
ATTACHMENT
Budget Checklist - Amendments to the Proposed Budget
Fiscal Year 2013 -14
Budget
Department/Account NumberlDescription Increase (Decrease) Approved
1 GENERAL- FUND',SURPLUSADJUETMENT' =____ — _—
Expenditure adjustment - Move requested budget appropriation to surplus
$ (1.846,675
RANGES T_ ___
-k' C - _ - , O;THE'IPROPOSED BUDGET7A53PRINTED =;OPERATING ;EXPENDIT.UREST
Administration
Management Increases
S 35,000
Debt Service - Investment Advisor
$ (32,000)
Part-time Senior Fiscal Clerk salary & benefits at.5 FTE
$ 35,470
General Fund Transfer to FFP Reserve Fund
$ 1,000,000
General Fund Transfer to Facilities Maintenance Plan Fund
$ 250,000
City Council
Crystal Cove Cottages - Renovation Support
$ 20,000
Balboa Island Historical Society
$ 15,000
Newport Bay Conservancy
$ 30,000
Community Development
City Hall Re -Use Consulting
$ 50.000
Building & Plan Check Inspection Services (1001yo revenue offset)
$ 100,000
Library & Cultural Arts
Transition to Cultural Arts Contract.
$ (68,000)
Municipal Operations
Electrical Maint / Repair (Streetlight Energy Efficient Demo)
$ 50,000
Police
Training Sergeant Promotion
$ 49,000
Public Works Department
CIP Traffic Operations Support and Contract Support
$ 350.000
Salaries and Benefits (Admin Staffing Adjustment)
$ 76,679
Salary savings (Admin Staffing Adjustment)
$ (76,679)
Tidelands
Market Reuse Study on Newport Pier Concession
$ 25,000
Workers' Compensation & General Liability
General Liability Insurance Excess
$ 45,000
General Liability Property Insurance
_
$ 357,000
Workers' Compensation Excess Insurance
$ 35,000
Equipment Fund
Three additional Police. vehicles (2 motorcycles & i CSI van)
$ 75,000
.800 MHz Radios
$ 393.541
IT
IT ISF Operational and Strategic Maintenance and Operating & Capital Outlay
$ 1,259,930
Additional CADIRMS Implementation Costs
$ 454,250
Narcotic Asset Forfeiture Fund
Additional crime suppression expendilures
$ 150,000
TOTAL CHANGES TO THE PROPOSED OPERATING EXPENDITURE BUDGET $ 4,679,191
TOTAL CHANGES TO THE PROPOSED OPERATING EXPENDITURE BUDGET BY FUND
General Fund
$
1,916,470
Debt Service Fund.
$
(32.000)
Narcotic Asset Forfeiture Fund
$
150,000
General Liability Insurance Fund
$
402.000
Workers Compensation Reserve Fund
$
35.000
IT ISF
$.
1,714,180
Equipment Replacement Fund
$
468,541
Tidelands Operating Fund
$
25,000
Total Changes to the Proposed Operating Exp Budget
S
4,679,191
- CHANGES "T,OhTHE'PROPAO PE)'?BUDGET£?A51P,RINTEDn +CIp EXP,ENDIT;URES _
Capital Improvement Project
Sediment Removal - Selenium al Big Canyon Golf Course
$
75,000
_Pump Station and Water Well Project (Southern Calif Edison component)
$.
253,786
Newport Harbor Dredging Permit
$
56.000
Structural. Rehab of the Doryman Fleet Facility
$
50,000
City Street Light Circuit Rehabilitation
$
645,000
Arts & Culture Master Plan
$
100,000
TOTAL CHANGES TO THE PROPOSED CIP EXPENDITURE BUDGET
$
1,179,786
TOTAL CHANGES TO THE PROPOSED CIP EXPENDITURE BUDGET BY FUND
General Fund
$
72(),000
Tidelands Fund
$
106,000
Contributions Fund
$
253,766
Public Arts Fund
$
100,000
Total Changes to the Proposed CIP Exp Budget
$
1,179,766
^"LCHANGES,T,O 7HE PROPO,SED;;BUDGEU,'A RINTED_- ;REVENUE;= —' - -!'
Budget
Department/Account Number/Description
Increase (Decrease) Approved
Building & Plan Check Inspection Services (100% revenue offset)
$
100,000
General Fund Revenue Adjustment
$
20,000
Streetlight Energy Efficiency Demonstration (from SCE)
$
50,000
Tidelands Increment Revenue- Harbor Capital Fund
S
1,205,748
Contributions Fund - Southern California Edison Refund
$
253,786
TOTAL CHANGES TO THE PROPOSED REVENUE BUDGET
$
1,629,534
TOTAL CHANGES TO THE PROPOSED REVENUE BUDGET BY FUND
General Fund
$
170,000
Tidelands Harbor Capital Fund
$
1,205,748
Contributions Fund
$
253,786
Total Changes to the Proposed Revenue Budget ...........
$
1,629,534
_
- - APITAL• IMP_R • VEMENT P,ROGRAM:- ;F3EBUDGETS- -- -- --
._. ___ —_
Budget
Department/Account Number/Description Increase (Decrease) Approved
Public Works
7011 - 0 7002 0 40 City Hall Interim Use Plan $ 28,395
7012- C2502010
Storm Drain Interceptors- Tier _
$ (22,058)
7012- C2502014
Storm Drain System Repairs and Sliplining
$ (1.,400)
7013- C2001009
Sidewalk Curb and Gutter Replacement and ADA Improv
$ 25,000
7013- C2002063
_
Balboa Boulevard Landscaping
$ (22,265)
7013- C3001003
Transportation Model Maintenance. and Update
$. 125,000
7013- C3001008
Traffic Signal Equipment Enhancement Program
$ (10,420)
7013- C3002016
CitWwide Street. Signage, Striping and Marking
$. 23,000
7014- C5002002
Buck Gully Stabilization
$ 30,000
7181- C3002018
Traffic Signal Modernization Phase 6
$ 120,000
7231- C4402007
Seawall and Bulkhead Modifications
$ 80,000
7231- C4402012
Eelgrass.Survey Lower Harbor
$ (50,000)
7231- C4402014
Vessel Waste Pumpout Station Repair
$ (15,000)
7231- C4801003
Bay Beach Sand Management and Minor Dredging
$ 250,000
7251- C3002021
Eastbluff Bike Lane
$ (88,712)
7251- C4402014
vessel waste Pumpout Station Repair
$ (55,000)_
7255- C5002006
Newport Coast ASB5 Protection Program $
(41,000
7261 - 03002018
Traffic Signal Modernization Phase 6 '$
280,000
7271- C1002021
Central Library HVAC Refurbishment $
(15,050)
7284- C2502010
Storm Drain Interceptors - Tier 1
$ (96,799)
7410- C1002009
Civic Center and Park $
677,764
7410 - 01002030
Civic Center and Park - Construction $.
5,456.318
7410 - 01002033
Civic Center and Park - FF &E.
$ 4,153
7410 - 01002035
Civic Center and Park - OCIP Loss Claims
$ 967.379
7410- CIO02041
Civic Center and Park - ITIAV
$ 119,094
7411- C4002002:
Marina Park
$ (174,070)
7412 - 05100515
Sunset Ridge Park
$ 19,000
7459- C5100379
Santa Ana Heights Utility Undergrounding
$ 53.755
7541- C7002004
Big Canyon & Pon. Streets Sewer Diversion Improvements
$ 26,905
TOTAL CAPITAL PROJECT REBUDGETS $
CAPITAL IMPROVEMENT PROGRAM REBUOGET SY FUND
General Fund $
Building Excise Tax. Fund $
Contributions Fund $
Environmental Contributions Fund $.
Civic Center Fund $
Marina Park Fund S.
Measure M Competitive Fund S
Misc SAH Projects Fund $
State Gas Tax Fund $
Sunset Ridge Park Fund $
Tidelands Fund $
Transportation and Circulation Fund $
Wastewater Capital Fund S.
Total CIP RebudgetslChanges $
7,693,992
175,252
(15,050)
(143,712)
(41,000)
7,224,708
(174,070)
(96.799)
53,758
120,000
19,000
265,000
280,000
26,905
7,693,992
Attachment B
RESOLUTION NO. 2013 -
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF NEWPORT BEACH; ADOPTING THE
BUDGET FOR THE 2013 -14 FISCAL YEAR.
WHEREAS, the City Manager of the City of Newport Beach has prepared and
submitted to the City Council a proposed annual budget for the 2013 -14 Fiscal Year; and
WHEREAS, the City Council has reviewed said proposed budget, detennined the time
for the holding of a public hearing thereon, and caused a. notice of said hearing to be published not less
than ten (10) days prior thereto in the official newspaper of the City, and copies of the proposed budget
were made available for inspection by the public in the Office of the City Clerk and the Finance
Deparhnent at least ten (10) days prior to said hearing; and
WHEREAS, the City Council has held a public hearing on said proposed budget on
June 11, 2013, and has made such revisions in the proposed budget as it deemed advisable; and
WHEREAS, the City Manager has the authority to approve budget increases not to
exceed $10,000 in any Budget Activity or Capital Project, in accordance with Council. Policy F -3
(Budget Adoption and Administration); and
WHEREAS, the City Manager may accept donations or grants of up to $10,000 on
behalf of the City and appropriate the funds for the purpose intended, in accordance with Council.
Policy F-3 (Budget Adoption and Administration); mid
WHEREAS, all requirements of the City Charter relating to the preparation and
consideration of the animal budget have been complied with.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Newport
Beach that the budget of the City of Newport Beach for the 2013-14 Fiscal Year as revised by the City
Council via the Budget checklist is hereby adopted. The total approved appropriation of $278,917,876
Attachment B
($260,897,610 with Transfers Out), plus any items on the approved Budget Checklist attached as
Attaclunent A, has been allocated to the following ftiinds in the amounts hereinafter shown:
Fund
General Fund
Ackerman Fund
CD:BG Fund
Asset Seizure Fund
AQMD Fund.
SLESF Fund,
State Gas Tax Fund
Measure M Fund
Tidelands Fund
Contribution. Fund
Circulation Fund
Building Excise Tax
Environmental Liab.
Newport Annexation
Debt Service
Civic Center
Marina Park
Sunset Ridge Park:
LG Headquarters
Strategic Planning
CdiM_Fire Station' Rebuild.
Big Cyn Reservoir Maint Yard
MISC SAN Projects Fund
Major Maintenance & Repair
Insurance Reserve Fund
Retiree Medical Fund
Comp. Absence Fund
IT Strategic Fund
Equipment Fund
Water Fund
Wastewater Fund
Total Appropriations
Operating
Budget
$155,673,022
5,000
327,397
250,220
10,500
138,_ 222
0
0
2,509,600
0
0
0
176,886
1,200,000
10,633,017
0
0
0
0
0
0
0
0
0
5,963,51.0
3,428,403
2,670,050
7,782,977
4,735,471
19,281, 1.14
2,845,911
$217,631,300
Capital Budget
$6,667,370
0
0
0
0
0
6,298;350
6,860,775
2,930,000
7,261,500
300,000
340,000
0
0
0
500,000
1.5,275,000
8,750,000
1,384,000
187,601
250,000
750,000
100,000
150,000
0
0
0
0
0
2,737,000
544,980
$61,286,576
Total Budget
$1.62,340,392
$5,000
$327,397
$250;220
$10,500
$138,222
$6,298,350
$6,860,775
$5,439,600
$7,261,500
$300,000
$340,000
$1.76,886
$1,200,000
$10,633,017
$500,000
$15,275,000
$8,750,000
$1,384,000
$1.87,601
$250,000
$750,000
$100,000
$150,000
$5,963,51.0
$3,428,403
$2,670,050
$7,782,977
$4,735,471
$22,018,1.1.4
$3,390,891
$278,917,876
BE IT FURTHER RESOLVED that a copy of said approved budget, certified by the
City Clerk shall be filed with the persons retained by the City Council to perform auditing functions
for the Council, and a further copy shall be placed, and shall remain on file, in the Office of the City
Clerk Where it shall be available for public innspection.
Attachment B
BE IT FURTHER RESOLVED that the budget so certified shall be reproduced and.
copies made available for the use of the public and of departments, offices and agencies of the City.
ADOPTED the i I °i day of June, 2013.
MAYOR
ATTEST:
CITY CLERK
Attachment: Budget Checklist
PROOF OO F
PU:LfCP,TlON
STATE OF C LIFO;"'JIH
)ss-
COUNTY
I am a citizen of the United States and a
resident of the County of Los Angeles; I
am over the age of eighteen years, and
not a party to or interested in the notice
published. I am a principal clerk of the
NEWPORT BEACH /COSTA MESA
DAILY PILOT, which was adjudged a
newspaper of general circulation on
September 29, 1961, case A6214, and
June 11, 1963, case A24831, for the
City of Costa Mesa, County of Orange,
and the State of California. Attached to
this Affidavit is a true and complete copy
as was printed and published on the
following date(s):
Saturday, June 1, 2013
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Executed on June 10, 2013
at Los Angeles, California
i(1113 ,Kitt < 4 , ":'1 r `_ `/
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Juriea,'201
CITyYg F =NEWPORTj+BEACH;
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