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Home My WebLink AboutSS3 - Budget Overview and Capital Improvement ProgramH ,v \LIFO �'� n Proposed Budget ■ Review Budget Process & Assumptions. 0 Revenues & Expenditures. ■ Reserves and Fund Balance ■ Pending Issues ■ Conclusion ■ Fiscal year is July 1 to June 30. ■ Delegates authority for preparation to the City Manager for recommendation to the City Council. ■ Requires budget submission to the City Council at least 35 days prior to the beginning of each fiscal year; Proposed Budget was distributed on May 1St. ■ Requires public notice, scheduled for May 26tH, and public hearing, scheduled for June Stn Continued ■ Council may modify budget before adoption. ■ Council to adopt budget on or before June 30. ■ Council may amend the budget after adoption. ■ Council may also reduce appropriations if necessary. ■ All appropriations lapse at the end of the fiscal year if not expended or legally encumbered ■ 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 distributed. ■ May — Finance Committee /City Council review. ■ June — Public Hearings are conducted and budget is adopted. ■ Serves as a planning guide. ■ Matches available resources with Council Priorities. ■ Ensures that essential City services will be provided. ■ Allows for public input. ■ Maintains adequate emergency resources. ■ Establishes legal authority for expenditure. Fund Type Definition Fund Names General Fund Chief operating fund in the City's budget used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds Used to account for revenue derived from specific taxes State Gas Tax, Measure M, or revenue sources restricted for a specific purpose. Environmental Liability, Contributions, etc. Capital Projects Funds Used to account for financial resources to be used for Oasis Sr. Center, Marina Park, the acquisition or construction of major capital facilities. Sunset Ridge, Civic Center, etc. Internal Service Funds Used to allocate the cost of providing centrally managed Insurance Reserve, Retiree services to departments on a full cost recovery basis. Medical, Compensated Absence, Equipment Permanent Funds Used to report resources that are legally restricted to Ackerman Endowment and the extent that only earnings and not principal may be Bay Dredging Fund used to support a particular activity. (Robinson /Skinner Endowment) Enterprise Funds Business -type activities, self- supporting in that they are Water and Wastewater financed ■ Known Factors ■ Historical Analysis ■ State and County Issues ■ Economy ■ Economic Development ■ Growth Expectations ■ Department Input ■ Property Taxes -37% Property Taxes $ 78,810,195 ■ Sales &Other Taxes -19% Sales & Other Taxes 40,290,428 ■Other Revenue - 0% Other Revenue 695,600 Use of Money & Property 16,328,764 ■ Use of Money & Property - 8% Fines, Forfeitures, & Penalties 3,646,000 Charges for Services 14,421,989 ■ Fines, Forfeitures, & Penalties - 2% Intergovernmental Revenue 10,032,430 m Charges for Services - 7% Licenses, Fees, & Permits 4,972,390 Enterprise Fund Revenue 22,226,475 ■ Intergovernmental Revenue - 5% Internal Service Fund Revenue 19,252,268 ■ Licenses, Fees, &Permits - 2% $ 2101676,539 u Enterprise Fund Revenue -11% ■ Internal Service Fund Revenue - 9% ■ Property Taxes - 52% ■ Other Revnue - 0% ■ Taxes Other Than Property - 27% Property Taxes $ 78,810,195 Taxes Other Than Property 40,290,428 ■ Licenses and Permits - 2% Licenses and Permits 2,947,790 Intergovermental 2,051,200 ■ Intergovermental -1% Charges for Current Services 14,380,989 Find, Forfeitures & Penalties 3,654,000 ■ Charges for Current Services -10% Use of Money and Property 7,418,404 Other Revnue 595,600 ■ Find, Forfeitures & Penalties - 2% $ 150,148,606 ■ Use of Money and Property - 5% ■ Other Revnue - 0% Secured Property Tax Sales Tax Transient Occupancy Tax Total $ 56,916,000 37.9% $ 19,6561428 13.1% $ 121900,000 8.6% $ 89,472,428 59.60/- Increase 2.0% ncrease 2.5% No increase Taxpayer Irvine Company 4000 MacArthur Limited Partnership Jazz Semiconductor Inc. Newport Bluffs LLC Balboa Bay Club Inc. 100 Bayview LLC UDR Newport Beach North Ltd. Partner. Coronado South Apts. Ltd. Partnership HHR Newport Beach LLC Newport Healthcare Center LLC /48:. Percent of Total City Taxable Taxable Assessed Assessed Value Rank Value $ 1,448,383,889 1 4.04% 153,070,961 2 0.43% 148,657,479 3 0.41% 132,779,429 4 0.37% 126,342,822 5 0.35% 119,340,000 6 0.33% 113,278,316 7 0.32% 110,168,052 8 0.31% 83,512,395 9 0.23% 81,600,000 10 0.23% $ 2,517,133,343 7.02% ■ Council priorities — City Manager and department budget recommendations were made in support of the Council's priorities. ■ 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 upon known or estimated costs. ■ Controllable costs — such as new /replacement equipment and is based upon department justification and historical trends. ■ Council Reserve Fund Policies. • Approved positions and recommended position changes. • Merit step increases. • Ceiling adjustments. • Known MOU increases (does not include LMA which expired Dec 2008 or PEA and PMA which expire Dec 2009). • City Manager approved supplemental budget items. Administrative Services Building City Attorney City Clerk City Council City Manager City Manager - Harbor Res City Manager - Code Enforce City Manager - PIO Fire General Services Human Resources Library Planning Police Public Works Recreation Utilities - Electrical Utilities - Oil & Gas Utilities - Sewer Utilities - Water Requested FY 10 Approved FY 10 Rev/ Exp Offset Net A roved 78.453 78.453 50.000 28,453 139,000 139,000 - 139,000 46,580 46,580 - 46,580 25,000 25,000 25,000 - 16,301 16,301 - 16,301 70,000 70,000 - 70,000 154,628 154,628 19,628 13 5, 000 268,319 123,913 - 123,913 94,800 - - - 145,625 145,625 160,850 (15,225) 12,500 12,500 - 12,500 17 500 17,510 17,500 '.O;.:70 6 829 500 255,478 574,022 Not 144,406 94,800 General Government $ 16,176,291 ■ General Government -7% Public Safety 78,617,750 ■Public Safety - 35% Community Development 8,671,354 Public Works -14% 30,871,336 ■CommunityDevelapment -4% Community Services 13,753,628 ■Public Works -14% Enterprise Funds 22,308,740 ■ Community Services -6% Internal Service Funds 17,839,562 ■ Enterprise Funds -10% Other Funds 3,329,580 a Internal Service Funds -8% CI P 30, 526,600 Debt Service 3,785,044 'Other Funds -1Yo $ 225,879,885 CiP -14% Debt Service - 2% By Function Salaries & Benefits Maintenance & Operations Capital Outlay Debt Service CIP $ 125,722,910 60,891,237 4,954,094 3,785,044 30,526,600 $ 225,879,885 • Salaries & Benefits - 56% • Maintenance & Operations -27% • Capital Outlay - 2% • Debt Service - 2% ■CIP -14% By Expenditure Category 2004 -05 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 Six -Year Average Total City Budget 186,822,264 189,686,214 215,694,856 213,772,951 282,129,504 225,879,885 218,997,612 CIP Budget 41,026,891 30,286,060 43,564,803 24,654,363 91,107,838 30,526,600 43,527,759 CIP Percentage of Total Budget 22% 16% 20% 12% 32% 14% 20% Revenues are projected to be $150.1 million (71% of total City revenues). Operating expenditures are estimated at $148.1 million (75.8% of the City's total operating budget). General Fund Revenues Property Taxes Taxes Other Than Property License & Permits Intergovernmental Charges for Current Services Fines, Forfeitures & Penalties Use of Money and Property Other Revenue TOTAL GENERAL FUND REVENUES FY 2007 -08 Actual Revenue 75,406,378 42,895,614 3,472,644 3,083,153 14,873,319 3,949,639 10,767,772 FY 2008 -09 Estimated Revenue 77,330,470 40,122,111 3,025,464 2,148,392 14,645,651 3,635,656 8,648,166 FY 2009 -10 Projected Revenue 78, 810,195 40,290,428 2,947,790 2,051,200 14,380,989 3,645,000 7,418,404 Percent Change Increase (Decrease) 1.91% 0.42% -2.57% -4.52% -1.81% 0.26% - 14.22% 3,481,089 547,767 595,600 8.73% 157, 929,608 150,103, 677 150,139,606 0.02% TOTAL GENERAL FUND OP BUDGET 138,648,802 FY 2008 -09 Estimated Ex 15,637,108 76,163,845 9,539,183 30,310,337 14,014,778 1,571,250 147,236,501 FY 2009 -10 Projected Exp General Fund 16,176,291 78,617,750 8,671,354 30,871,336 13,753,628 148,090,359 Percent Change Increase (Decrease) 3.45% 3.22% - 9.10% 1.85% -1.86% - 100.00% 0.58% FY 2007 -08 General Fund Operating Expenditures Actual Exp General Government 14,513,084 Public Safety 73,004,049 Community Development 8,163,063 Public Works 28,686,859 Community Services 12,639,247 Debt Service 1,642,500 TOTAL GENERAL FUND OP BUDGET 138,648,802 FY 2008 -09 Estimated Ex 15,637,108 76,163,845 9,539,183 30,310,337 14,014,778 1,571,250 147,236,501 FY 2009 -10 Projected Exp General Fund 16,176,291 78,617,750 8,671,354 30,871,336 13,753,628 148,090,359 Percent Change Increase (Decrease) 3.45% 3.22% - 9.10% 1.85% -1.86% - 100.00% 0.58% Salaries & Benefits Maintenance & Operations Capital Outlay CIP $110,553,442 36,455,098 1,081,819 3,120,000 $151,210,359 ■ Salaries & Benefits - 73% ■ Maintenance & Operations - 24% ■ Capital Outlay -1% ■CIP -2% FY 10 Council Grants already included in preliminary budget Recipient Funding for Number of Years Amount Balboa Island Historical Operations Since FY 02 Society $15,000 Balboa Island Improvement Flowers and holiday Since FY 05 Assn decorations/storage $11,250 CdM Chamber CdM 5K Since FY 05 — grant is in addition to agreement for race proceeds. $5,000 CdM Chamber CdM Christmas Walk Since FY 04 — Grant funds the event expenses. $10,000 Leadership Tomorrow Sponsorship Since FY 04 $10,000 Newport Beach Film Festival Sponsorship Since FY 00 (increased to $100,000 in FY 08) $100,000 Newport to Ensenada Race Sponsorship Since FY 05 (increased to $20,000 in FY 09 with 3 -year commitment) $20,000 Susan B. Komen Race for the Cure Since FY O1 $7,500 OC Marathon Sponsorship Since FY 06 $JU,uuu Total $228,750 Included in FY 2009 -10 Budget During preparation of the FY 2009 -10 budget, departments were asked to reduce their operating budgets by 2 %. These one -year reductions will not reduce services provided. The identified reductions were: Salaries & Benefits $1,552,510 Maintenance & Operations 1,224,613 Capital Outlay 256,265 Total $3,033,388 In Total By Department Sal & Ben M &0 Capital Total Administrative Services 90,000 85,000 175,000 Building - 100,000 100,000 City Attorney - - - City Clerk - 9,819 9,819 City Council - 25,000 - 25,000 City Manager - 66,868 7,000 73,868 Fire 450,354 151,590 86,000 687,944 General Services 147,866 343,000 50,000 540,866 Human Resources - 45,003 - 45,003 Library 67,450 27,050 38,000 132,500 Planning - 49,000 15,500 64,500 Police 691,790 183,889 38,000 913,679 Public Works 98,240 18,765 117,005 Recreation 6,810 94,200 3,000 104,010 Utilities - 44,194 - 44,194 1,552,510 1,224,613 256,265 3,033,388 By Department Department Position Administrative Services Telecom unication Specialist General Services Maintenance Worker 1 (2 positions) Library On -call positions Police Applications Coordinator Police Officers (3 positions) Community Services Officer Public Works GIS Analyst List does not reflect positions that will be underfilled. Water Revenue Refunding Bonds Balboa Marina Loan Pre - Annexation Agreement Refunding Library COP Section 108 Loan Total Debt Service Debt Service Estimates 2009 -2010 2010 Original Balance Balance Total Issuance 07101/2009 Additions Deletions 06/30/2010 Payments Interest 14,225,000 1,585,000 3,457,930 1,119,613 18,000,000 9,600,000 7,330,000 4,335,000 2,400,000 1,972,000 45,412,930 18,611, 613 - (1,585,000) - 1,585,000 - (186,679) 932,934 237,062 - (1,200,000) 8,400,000 1,200,000 - (345,000) 3,990,000 565,447 - (89,000) 1,883,000 197,535 (3,405,679) 15,205,934 3,785,044 Year of Principal Final Paid to Date Payment 14,225,000 2010 50,383 2,524,996 2016 - 9,600,000 2017 220,447 3,340,000 2019 108,535 517,000 2024 379,365 30,206,996 Equipment Replacement $ 3,839,975 ■ Equipment Replacement Equipment Maintenance 2,278,087 ■ Equipment Maintenance Compensated Absences 1,750,000 ■ Compensated Absences Workers' Compensation 2,529,400 ■Workers' Compensation General Liability 2,858,100 Retiree Medical Insurance 4,584,000 ■ General Liability $ 17,839,562 ■ Retiree Medical Insurance F/T FTE Administrative Services 58.00 4.97 Building 34.00 1.16 City Attorney 8.00 0.40 City Clerk 3.00 0.00 City Council 0.00 0.07 City Manager 21.00 11.33 Fire 156.00 35.26 General Services 122.00 3.50 Human Resources 10.00 2.00 Library 43.00 26.48 Planning 23.00 0.40 Police 241.00 15.55 Public Works 33.00 2.58 Recreation 28.00 28.93 Utilities 53.00 8.93 Total 833.00 141.56 300 250 200 150 100 50 0 Ica, °FaS cc`O�ca�ac c�o o�y a`> °c ¢y °¢" oca� c�eea F�eQ °\`�e <. � �\ati�a P o P G�a�a F Pa By Department Administrative Services Building City Attorney City Clerk City Council City Manager Fire General Services Human Resources Library Planning Police Public Works Recreation Utilities - Electrical GENERALFUND TIDELANDS FUND City Manager - Harbor Resources WATER ENTERPRISE FUND SEWER ENTERPRISE FUND EQUIPMENT FUND TOTALS 2008.09 FIT FTE 56.00 6.42 34.00 1.16 8.00 0.40 3.00 0.00 0.00 0.07 14.00 2.16 156.00 33.13 107.00 2.75 10.00 1.50 43.00 26.48 23.00 0.40 241.00 15.55 33.00 2.58 28.00 26.94 5.00 0.50 761.00 120.04 8.00 6.28 35.00 6.25 13.00 1.75 15.00 0.75 832.00 135.07 2009 -1U F!T FTE 58.00 4.97 34.00 1.16 8.00 0.40 3.00 0.00 0.00 0.07 14.00 2.56 156.00 35.26 107.00 2.75 10.00 2.00 43.00 26.48 23.00 0.40 241.00 15.55 33.00 2.58 28.00 28.93 5.00 0.90 763.00 124.01 7.00 8.77 35.00 6.28 13.00 1.75 15.00 0.75 By Fund Variance 0.55 0.00 0.00 0.00 0.00 0.40 2.13 0.00 0.50 0.00 0.00 0.00 0.00 1.99 0.40 5.97 1.49 n na 0.00 0.00 833.00 141.56 7.49 Position Accountant Fiscal Clerk Parking Lot Crew Chief Department Admin Services - Accounting Admin Services- Fiscal Services City Manager- Parking Operations Full -time 1.00 Upgraded from .75 Part -time Fiscal Clerk 1.00 Upgraded from .70 Part -time Fiscal Clerk (1.00) Downgraded to P/T Lead Parking Lot Attendant with add'I 1.3 FTE for a total of 1.8 FTE TOTAL 1.00 Position Department FTE Fiscal Clerk Admin Services - Accounting (0.75) Fiscal Clerk Admin Services - Fiscal Services (0.70) Department Assistant City Manager (0.03) Special Projects Consultant City Manager - Harbor Resources 0.17 Tidepool Ranger City Manager- Harbor Resources 0.50 Lead Parking Lot Attendant City Manager - Parking Operations 1.30 Parking Lot Attendant City Manager - Parking Operations 0.52 Production Assistant City Manager- PIO 0.43 Seasonal Lifeguards Fire 2.13 Office Assistant Human Resources 0.50 Recreation Leader Recreation - Aquatics 0.03 Senior Recreation Leader Recreation - Facilities 0.19 Senior Recreation Leader Recreation - Fee Based Classes 0.53 Office Assistant Recreation - Newport Coast Comm Ctr. (0.10) Recreation Leader Recreation - Newport Coast Comm Ctr. (0.64) Senior Recreation Leader Recreation - Newport Coast Comm Ctr. 0.57 Recreation Clerk Recreation - Newport Coast Comm Ctr. 0.01 Recreation Leader Recreation - Preschool Program 0.12 Senior Recreation Leader Recreation - Senior Services 0.72 Senior Services Van Driver Recreation - Senior Services 0.50 Recreation Leader Recreation - Special Events (0.19) Recreation Leader Recreation - youth After School /Camp 0.25 Utilities Aide Utilities - Electrical (0.50) Electrician I Utilities - Electrical 0.90 Maintenance Aide Utilities - Water (0.67) Maintenance Services Assistant Utilities - Water 0.90 6.49 Changed to Full -time Accountant. Changed to Full -time Fiscal Clerk. Changed from Full-time Parking Lot Supervisor. Due to "additional" week of summer in 2009. Funded by grant from Hoag Hospital Changed to Electrician I. See note above. Changed to P/T Maintenance Services Assistant See note above. Salary & Benefits Maintenance & Operations Capital Outlay Debt Service Total Operating Budget CIP Total Budget Internal Charges Net Budget Total Expenditures $ 125,722,910 59.60% 60,891,237 28.87% 4,954,094 2.35% 3,785,044 1.79% 195,353,285 92.61% 30,526,600 14.47% 225,879,885 (14,9399768) -7.08% $ 210,940,117 100.00% General Fund Expenditures $ 110,553,442 73.11% 36,455,098 24.11% 1,081,819 0.72% 148,090,359 3,120,000 151,210,359 $ 151,210,359 ,1 1 . 97.94% 2.06% 0.00% 100.00% and General Fund Expenditures Accounting Reserves Reserve for Inventories Reserve for Long term receivables Reserve for Prepaid Items Reserve for Encumbrances Affordable Housing Reserve Designated Reserves Reserve for Facilities Replacement Plan Senior Citizen Site Off Street Parking Paramedic Program (Hoag) Recreation Instruction Reserve Park In Lieu Fees In Lieu Parking Fees Neighborhood Enhancement Res. A Neighborhood Enhancement Res. B Oceanfront Encroachment Cable Franchise START Video Hoag Circulation Improvements Contingency Reserve Stabilization Reserves Appropriations Reserve (Operations) Appropriations Reserve (CIP rebudget) Fair Value Adjustment Reserve for PERS Rate Changes FY 2008 -09 FY 2009 -10 Change Change 229,546 127,836 1,686,724 23,500,000 23,790 116,441 777,871 383,056 522,650 563,468 256,690 1,191,279 (63,008) 1,241,107 316,417 1,500,000 19,190,312 13,469,978 229,546 127,836 1,686,724 26,000,000 23,790 127,441 777,871 488,056 522,650 630,468 288,690 1,364,279 116,992 1,316,107 316,417 1,500,000 18,590,312 10,969,978 5,000,000 2,500,000 11,000 105,000 67,000 32,000 173,000 180,000 75,000 (600,000) (2,500,000) 0.0 % N/A 0.0% N/A 0.0% N/A 10.6% 0.0% 9.4% 0.0% 27.4% 0.0% 11.9% 12.5% 14.5% - 285.7% 6.0% 0.0% 0.0% -3.1% N/A -18.6% N/A N/A 0.0% n 10 • 1 111 w $70,000 c $60,000 o$50,000 w$40,000 c H $30, 000 3 °r $20,000 F $10,000 $0 0prl 0p��pp pp�ppccp\ pp�ppo�ppppp�pp� pp^�pp�pp�pp0pp'1 pp�pppp ^O N�� N 0ti ti ti ti ti ti ti ti ti ti Fiscal Year Ending June 30 Fund Balance ■ Facilities Financing Plan ■ Lower Bay Dredging ■ State Borrowing Property Tax Revenues ■ PERS Rates FY 2011 -12 ■ Water Rates • Traffic Signalization Phases - 5,6, & 8 • Big Corona Police Patrol /Park Patrol • New Positions — Police Custody Officer • Clean Natural Gas (CNG) • McFadden Square Phase 2 To be discussed starting May 26th The State is proposing to borrow up to 8% of FY 2008 -09 property tax revenues from the cities and counties under the authority of Prop. 1A if the special ballot issues on May 19th fail. Prop 1A requires a supermajority vote of the Legislature to enact and also requires that the funds be repaid with interest in three years. The initial State estimate for the City of Newport Beach is $4.5 million, however it could be higher after final calculations. The City Budget documents including the Budget Detail, the Resource Allocation Plan, and the Capital Improvement Program Budget are available on -line at: htta: / /www.citv.newr)ort- beach.ca.us accounting/budget.as