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Home My WebLink AboutSS2 - PowerPoint PresentationCity of Newport Beach iim,4z* Fiscal Year 2006 -07 Budget Topics • Overview Budget Process & Assumptions • Revenues & Expenditures • Reserves & Fund Balance • New Developments & Pending Issues • Conclusion City Charter Budget Provisions • Fiscal year is July 1 to June 30 • Delegates authority for preparation to the Cit` Manager for recommendation to the City Council • Requires budget submission to the City Council at least 35 days prior to the beginnin€ of each fiscal year • Requires public notice and hearing Continued ► City Charter Budget Provisions • Council may modify budget before adoption • Council to adopt budget on or before June 30 • Council may amend the budget after adoptior. • Council may also reduce appropriations if necessary • Requires annual independent audit Budget Preparation Process ❖ November - Project current year financial forecasts. ❖ December - Prepare preliminary revenue estimates and balance revenues and expenditures to ensure reserves are fully funded. ❖ January - Establish budget ceilings. ❖ February /March - Departments submit budgets for City Manager review. ❖ April - The Preliminary budget is printed and distributf ❖ May - City Council begins its review. ❖ June - Public Hearings are conducted and budget is adopted. 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Year 2006-2007 How we budget revs ✓ Known factors ✓ Historical analysis ✓ State & County issues ✓ Economy ✓ Economic development ✓ Growth expectations ✓ Department input Revenue (All Funds) $188,891,841 2006 -07 Revenues by Source Enterprise Fund Revenue 11% Licenses, Fees, & 2% Intergovernmental Revenue 4% Charges for Services 7% Fines, Forfeitures, & Penalties — 2% Internal Service Fund Revenue 8% umer Kevenue 0% Use of IVloney & Property 9% Property Taxes 36% Sales & Other Taxes 21% cot P llki Current Year REVENUE COMPARISON WORKSHEET- GENERAL FUND TOTALS BY REVENUE CATEGORY General Fund Property Taxes Taxes Other Than Property License & Permits Intergovernmental Charges for Current Services Fines, Forfeitures & Penalties Use of Money and Property Other Reeenue TOTAL GENERAL FUND e a e a FY 2005 -06 Revised Revenue 61,055,240 37,168,230 3,009,540 3,965,391 12,601,949 3,397,000 7,779,954 1,159, 523 FY 2006 -07 Projected Re\enue 67,102,454 38, 660, 853 2,794,900 2,488,100 13,211,561 3,567,500 8,181,010 418,142 130,136,827 136,424,519 Percent Change Increase (Decrease) 9.90% 4.02% -7.13% - 37.25% 4.84% 5.02% 5.15% - 63.94% 4.83% Revenue Total General Fund Revenues $136,424,519 of which 57% is from three sources: Secured Property Tax $ 4699049000 34.3% Increase 4.0% Sales Tax $ 2199449142 16.0% Increase 4.0% Transient Occupancy Tax $ 81722,981 6.3% Increase 4.0% Total $ 77,571,123 56.8% How we estimate expenditures ✓ Personnel — authorized positions are allocated to divisions and funds based on department recommendations. ✓ Required costs — consists primarily of approved contracts, utilities, equipment, etc. and is based on known or estimated costs. ✓ Controllable costs — such as new /replacement equipment and is based on department justification and historical trends. Expenditures (All Funds) Debt Service 2% Other Funds 1% Internal Service Funds 6% Enterprise Funds 9% $205,943,148 2006 -07 Expenditures by Function CIP General Government 6% 20% Public Safety 34% Community Services 5% Community Development 3% Total Expenditun Salary & Benefits $ 104,391,2 Maintenance & Operations 52,178,1r Capital Outlay 4,315,E Total Operating Budget Debt Service CIP Total Budget Internal Charges Net Budget 160,885,(, 3,954,' 41,103,' 205,943,' 14,331,; $ 191,61 1,E General Fund Special Reserve Funds Estimated Year End Fund Balance 2006 -07 Contingency Reserve 16,293,134 Actual Fair Market Value Adj. - Future Fair Market Value Adj. - Appropriation Reserve (operating) 5,301,056 Appropriation Reserve (captial) - Reserve for Inventories 213,352 Reserve for Prepaid Items 411,804 Reserve for Encumbrances - Affordable Housing Reserve 1,329,420 Reserve for Long Term Receivables 50,000 Paramedic Program (Hoag) 250,000 Recreation Instruction Reserve 218,692 Senior Citizen Site 23,139 Park In Lieu Fees 871,235 Off Street Parking 88,887 In Lieu Parking Fees 407,489 Neighborhood Enhancement Res. A 181,786 Neighborhood Enhancement Res. B 1,157,358 Oceanfront Encroachment 505,759 Reserve for Capital Improvement 14,000,000 Reserve for PIERS Rate Changes 5,000,000 46,303,111 Budgeted Full -Time Positions ❑ Total Full -Time Positions ❑ Public Safety Positions i[IIIIU .Ilifl c 600 0 400 CL 4111f, rp 92.93 93 -94 94.95 95.96 96.97 97.98 98.99 99.00 00.01 01.02 02.03 03.04 04.05 05.06 06.07 Fiscal Year City Population in FY 1992 -93 was 67,637 and is estimated to be 83,120 in FY 2006 -07, an increase of almost 22.9 %. Over the same time period, full -time positions have increased by 6.3 %. New positions • Community Services Officer — Police Dept. • Facilities Maintenance Worker — Police Dept. /ABLE • Information & Communications Coordinator — Fire Dept. (included as MIS Specialist in prior years budgets, but held vacant and not funded) • 3 Fire Paramedics — Fire Dept • Principal Civil Engineer — Public Works • Associate Civil Engineer — Public Works • Maintenance Worker I — General Services (Operations Support) • Library Assistant — Library & Cultural Arts (Mariners Branch) City General Fund Balance Total General Fund Balance $60,000 $50,000 N L c $40,000 0 w 0 $30,000 c o $20,000 $10,000 $0 , O' O3 OR O`O O)O O'1 OO O°' 00 O^ O`1 03 O� Oh oO o1 KO �O PO NO �O NO ^0 NO �O f f f rO rp rO rp Fiscal Year Ending June 30 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Newport Beach ERAF Losses 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005 -* 93 94 95 96 97 98 99 00 01 02 03 04 05 06 Total: $60,342,249 * estimated PERS Rates The City has 605 miscellaneous PERS members (including part-time) and 286 safety PERS members. Fiscal Year Misc Rates Estimated Payroll PERS FY 03 -04 7.000% $33,145,786 $2,320,205 FY 04 -05 11.328% $33,065,616 $3,745,673 FY 05 -06 16.476% $35,199,351 $5,799,445 FY 06 -07 16.132% $38,717,865 $6,245,966 FY 07 -08 16.100% $39,879,401 $6,420,584 Fiscal Safety Estimated Year Rates Payroll PERS FY 03 -04 26.584% $25,537,718 $6,788,947 FY 04 -05 35.105% $26,097,319 $9,161,464 FY 05 -06 35.702% $26,431,270 $9,436,492 FY 06 -07 34.453% $28,645,267 $9,869,154 FY 07 -08 34.200% $29,504,625 $10,090,582 Fiscal Total Year PERS FY 03 -04 $9,109,152 FY 04 -05 $12,907,137 FY 05 -06 $15,235,937 FY 06 -07 $16,115,120 FY 07 -08 $16,511,165 City Audits /Reporting • External audit — all funds • Comprehensive Annual Financial Report (CAFR) • Single audit, Gas Tax, AQMD, OCTA, TDA Article 3, DOJ • Special reporting: — Grants including DOJ, OTS, SLESF, & LLEBG — CDBG — Newport Bay Dredging Permanent Fund (Robinson - Skinner) — Street Report — Library COP Annual Certification — Asset Forfeiture — Continuing Disclosure Reports for Water Revenue Bonds and Library COP — AQMD — State Controller's Report — Federal Sharing Equity Certificate New Developments and Pending Issues 1. Uncertainties of future State actions. 2. Pension costs. 3. Condition of City facilities, including City Hall and 20 -year facilities financing plan. 4. Increased costs for contracting services due to prevailing wage. 5. Rising General Liability insurance costs. 6. Funding for Spheres Issues. 7. Fire Station #7, Newport Coast Community Center, and Back Bay Science Center. 8. Sunset Ridge Park and other park development issues. 9. Marina Park redevelopment.