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Home My WebLink About2015-47 - Amending the Fiscal Sustainability Plan for Newport Beach City GovernmentRESOLUTION NO. 2015 -47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING THE FISCAL SUSTAINABILITY PLAN FOR NEWPORT BEACH CITY GOVERNMENT WHEREAS, the City of Newport Beach ( "City ") has remained a fiscally responsible municipality since its inception in 1906, carefully balancing its budget year - to -year despite changes in the regional and national economy; WHEREAS, the City and the region have slowly returned to a period of economic growth, the City is cognizant of its responsibility to continuously improve the organization and its services to maximize efficiency and cost - effectiveness; WHEREAS, as the region may see new economic growth, the City faces significant and costly obligations in the future, including rapid increases in retirement costs and the maintenance, repair, and replacement of City facilities via the Facilities Financial Planning Program and the City's Capital Improvement Program; WHEREAS, in 2010 the City Council adopted the fifteen (15) elements of a Fiscal Sustainability Plan ( "Plan ") and directed that the Plan be the policy of the City Council going forward into 2010 and beyond; WHEREAS, contemporaneous with the amendment to the Fiscal Sustainability Plan, the City Council is amending City Council Policy F -28 to require an annual contribution from the General Fund to the Facilities Financial Planning Reserve Fund to reflect a three percent (3 %) minimum contribution of the Total General Fund Revenue Budget rather than the Total General Fund Operating Budget; and WHEREAS, maintaining a high - quality natural and physical environment by creating aesthetically pleasing places to live, work, recreate, and visit shall remain a key goal of the City. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council of the City of Newport Beach hereby adds Element 3 to the City's Fiscal Sustainability Plan to ensure that infrastructure funding is made an explicit priority and amends Element 6 to maintain consistency with the changes to Council Policy F -28. The following elements of the Fiscal Sustainability Plan shall be amended to read: Resolution No. 2015 -47 Page 2 of 3 ELEMENTS OF THE CITY'S FISCAL SUSTAINABILITY PLAN 1. The City will proactively seek to protect and expand its tax base by encouraging a healthy underlying local economy. 2. The City will work to enhance and protect the property values of all Newport Beach residents and property owners. 3. The City will work to enhance and protect the City's quality of life through strategic and sustained investment in quality capital infrastructure improvements that are both long lasting and fiscally responsible. 4. The City will encourage shopping, dining, and visiting at Newport Beach stores, restaurants, and hotels. 5. The City will establish and maintain appropriate cash reserves. 6. The City will manage its Facilities Financial Planning Reserve so that General Fund contributions to the reserve shall not be less than three percent (3 %) of the total General Fund Revenue Budget. 7. City revenue performance will be reviewed no less than quarterly and appropriate budget adjustments will be made in advance of the end of a budget year if revenue performance is not meeting projections. 8. The City will initiate a "results -based budgeting" approach that allows the public and the City Council to prioritize City expenditures strategically rather than simply adjusting legacy expenditures to reflect inflation. 9. The City will implement a Performance Measurement/Management Strategy as part of an ongoing effort to ensure high - quality and efficient performance. 10. The City will consider competitive contracting of services and equipment when appropriate and where clear, cost - effective alternatives exist. 11. The City will make it a priority to be energy efficient in its provision of public services. 12. The City will establish appropriate cost - recovery targets for its fee structure and will annually adjust its fee structure to ensure that the fees continue to meet cost recovery targets. 13. The City will oppose efforts of the State and County governments to divert revenues from the City or to increase the unfunded service mandate of City taxpayers. 14. The City will work in partnership with its employees to ensure fair compensation and that costs related to pension and other benefits are appropriately allocated between employer and employees. 15. The City will vigorously defend itself and its taxpayers against frivolous lawsuits. 16. The City will seek additional intergovernmental funding and grants, with a priority on funding one -time capital projects. Grant - funded projects that require multi -year support will be reviewed by the Finance Committee. Section 2: All prior versions of the City's Fiscal Sustainability Plan that are in conflict with the amendments adopted by this resolution are hereby repealed. Resolution No. 2015 -47 Page 3 of 3 Section 3: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 5: The City Council finds the adoption of this resolution and the amendment of the City's Fiscal Sustainability Plan 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. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ADOPTED this gch day of June, 2015. ATTEST: -Ak44� )` ti ' Leilani I. Brown City Clerk Mayor STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2015 -47 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 9th day of June, 2015, and that the same was so passed and adopted by the following vote, to wit: AYES: Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tern Dixon, Mayor Selich NAYS: Council Member Peotter ABSENT: Council Member Petros IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 101" day of June, 2015. City Clerk Newport Beach, California (Seal)