HomeMy WebLinkAbout24 - Budget Hearing and AdoptionNEWPORT = CITY OF
NEWPORT REACH
City CouncH Staff Report Agenda Item Nola
June 12, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Tracy McCraner, Finance Director
APPROVED:
TITLE: Resolution 2012- 46 Fiscal Year 2012 -13 Budget Adoption
ABSTRACT:
The City Council is required by the City's Charter to adopt an annual budget by
resolution each year prior to June 30th.
RECOMMENDATION:
1. Hold the Public Hearing on the City Manager's Proposed Fiscal Year 2012 -13
Budget. After receiving 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 each checklist item, including those added to the City
Manager's Proposed Fiscal Year 2012 -2013 Budget by Council members at the
hearing. Based on the straw vote, items approved will be included in the City
Manager's Proposed Fiscal Year 2012 -13 Budget (Attachment A);
3. Approve Resolution 2012 4§ adopting the City Manager's Proposed Fiscal Year
2012 -13 Budget, as amenaed by Items 1 -2 above (Attachment B).
FUNDING REQUIREMENTS:
The proposed FY 2012 -13 Budget is balanced at $260,101,781 for all funds. The
preliminary checklist, as attached, increases the proposed budget as follows:
• Operating budget increases $2,432,463
• CIP budget increases $60,459
• Estimated Revenue increases $1,478,224
Resolution 2012 -_: Fiscal Year 2012 -13 Budget Adoption
June 12, 2012
Page 2
The operating budget increase is greater than the revenue budget increase due to the
planned purchase of the fire pumper, ladder truck and medic unit which are funded
through equipment maintenance fund reserves previously established for these
replacements.
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 2012 -13 fiscal
year was first submitted to the City Council on May 3, 2012. The City Council held
budget study sessions on May 8 and May 22 to review the City Manager's Proposed
Budget for the 2012 -13 fiscal year. A third budget presentation took place during the
regular session of the May 22, 2012 Council Meeting.
The City Manager's Proposed Budget for Fiscal Year 2012 -13 was prepared based on
four important values: 1) our desire to maintain a quality, physical environment; 2)
support extraordinary public safety; 3) an engaged citizenry; and 4) be a responsive,
customer focused, and transparent government. Our core budget principles were to
keep the Fiscal Year 2012 -13 budget generally flat when compared to the Fiscal Year
2011 -12 original budget, which included $8 million in operating department structural
reductions. The proposed budget accounts for previously approved increases in
contractual obligations, increases the investment in information technology, continues to
invest in our workforce to develop a smarter yet smaller organization, and most
importantly, all without drawing from our reserve funds. We also continue to increase
our investment in our infrastructure by increasing our General Fund capital improvement
project budget to $3.6 million, up from $2 million in original Fiscal Year 2011 -12
appropriations, and by increasing the annual General Fund contribution to our facilities
financing plan to $7.5 million, up from $5.0 million.
The City Manager's Proposed FY 2012 -13 Budget includes funding for 755 full -time and
126.14 full -time equivalent (part-time) positions, a reduction of 8 full -time and an
increase of 2.87 full -time equivalent positions from FY 2011 -12. This is the result of
continued departmental restructuring, realignment of functions, and contracting out.
Three additional position eliminations are being submitted for consideration on the
Budget Checklist: 1) Groundsworker I, 2) Utilities Specialist — Water and 3) Utilities
Specialist — Wastewater.
The City Manager is recommending changes to the Proposed Fiscal Year 2012 -13
Budget released on May 3, 2012. These changes are found in the budget checklist. As
stated in City Council Policy F -3, all Council directed changes to the City Manager's
Proposed Budget during this meeting shall be added to the budget checklist. The Mayor
will call for a straw vote on each checklist item during the public meeting. Please find
Resolution 2012 -_: Fiscal Year 2012 -13 Budget Adoption
June 12, 2012
Page 3
Attachment "A" which is an itemized listing of all proposed City Manager budget
checklist items.
This year, the Budget Checklist items are summarized as follows:
Proposed Budget Checklist Summary:
Supplemental Expenditure Budget Requests
CIP Rebudgets /Changes
Total FY 12 -13 Budget Checklist
Supplemental Revenue Budget Requests
Total FY 12 -13 Budget Checklist
General All Other
Fund Funds Total All Funds
$ 1,408,984
(73,833)
$ 1,335,151
$ 1,023,479
134,292
$ 1,157,771
$ 2,432,463
General All Other
Fund Funds Total All Funds
$ 25,000 $ 1,453,224 $ 1,478,224
$ 25,000 $ 1,453,224 $ 1,478,224
Assignments of Fund Balance for Council Priorities
Council Policy F -2 authorizes the City Manager to assign fund balance to be used for
specific purposes that are not already contracted or encumbered. The City is projected
to end FY 2011 -12 with almost $4.4 million in General Fund operational savings. This
Proposed FY 2012 -13 Budget includes a recommendation by the City Manager to
assign this FY 2011 -12 surplus, then allocates these resources to funding our IT
infrastructure and increasing our General Fund budget for CIP (streets, roads). Council
approval is required before any fund balance assignment can be appropriated and
expended during the fiscal year.
Planning Commission Review
On May 3 and June 7, the Planning Commission reviewed the Proposed Fiscal Year
2012 -13 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.
Resolution 2012 -_: Fiscal Year 2012 -13 Budget Adoption
June 12, 2012
Page 4
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 2, 2012.
Prepared by:
Submitted by:
Tracy McCr ne'r Da�e.Kiff
Finance Director City Manager
Attachments: A. FY 2012 -13 Budget Checklist
B. Resolution 2012-
ATTACHMENTA
Budget Checklist - Amendments to the Proposed Budget
Fiscal Year 2012 -13
Municipal Operations
Public Works Department
741x- C1002tINN City Hall Interim Use Plan - Remove from Major Facilities Master
Plan Fund $ (500,000)
7011- C1002040 City Hall Interim Use Plan - New Amount for General Fund
Recreation
4510 -8080 Irvine Ranch ConservancContract $ 190,550
TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET $ 2,432463
Department/Account NumberlDescription Increase (Decrease) Approved
TOTAL CHANGES TO THE PROPOSED REVENUE BUDGET
$
Budget
Department /Account Number /Description
Increase (Decrease Approved
( CHANGES -TQ TH E PROPOSED BUDGEfi_/fSi PRINTED_- EXPENDITURES
City Council
1,433,984
Equipment Maintenance Fund
0110 -8250
Increased Special Event Funding
$ 12,200
0110 -8250
Balboa Island Historical Socie
$ 15,000
Finance
(1,350,000)
Tidelands Fund
0643 -8080c
CPS Contract- Parking Lot Meters
$ (436,617)
Library
4002 -8012
Programming - Museum & Cultural Tours
$ 5,000
Municipal Operations
Public Works Department
741x- C1002tINN City Hall Interim Use Plan - Remove from Major Facilities Master
Plan Fund $ (500,000)
7011- C1002040 City Hall Interim Use Plan - New Amount for General Fund
Recreation
4510 -8080 Irvine Ranch ConservancContract $ 190,550
TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET $ 2,432463
Department/Account NumberlDescription Increase (Decrease) Approved
TOTAL CHANGES TO THE PROPOSED REVENUE BUDGET
$
1,478,224
TOTAL CHANGES TO THE PROPOSED BUDGET BY FUND
General Fund
$
1,433,984
Equipment Maintenance Fund
$
1,793,000
Major Facilities Master Plan Fund
$
(500,000)
Lifeguard Headquarters Fund
$
(1,350,000)
Tidelands Fund
$
200,000
Gas Tax Fund
$
(250,000)
Measure M Fund Turnback Fund
$
(392,224)
Prop 1B Transportation Fund
$
1,384,448
Bristol Street Relinquishment Fund
$
327,000
Contributions Fund
$
1,522,000
Water Enterprise Fund
$
(165,588)
Wastewater Enterprise Fund
$
(91,933)
Total Changes to the Proposed Budget ..........................
$
3,910,687
Department/Account Number /Description Increase (Decrease) Approved
Public Works
TOTAL CAPITAL PROJECT REBUDGETS $ 60,459
CAPITAL IMPROVEMENT PROGRAM REBUDGET BY FUND
General Fund
Tidelands Fund
Measure M Turnback Fund
Measure M Competitive Fund
Water Capital Fund
Master Facilities Fund
Total CIP Rebudgets /Changes
$ (73,833)
$ (102,866)
$ (662,148)
$ (586,758)
$ (36,234)
$ 1,522,298
$ 60,459
Attachment B
RESOLUTION NO. 2012 -
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF NEWPORT BEACH ADOPTING THE
BUDGET FOR THE 2012 -13 FISCAL YEAR.
WHEREAS, the City Manager of the City of Newport Beach has prepared and
submitted to the City Council a preliminary annual budget for the 2012 -13 Fiscal Year;
WHEREAS, the City Council has reviewed said preliminary budget, determined 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
Services Department at least ten (10) days prior to said hearing; and
WHEREAS, the City Council has held a public hearing on said preliminary budget on
June 12, 2012, and has made such revisions in the preliminary 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), and
WHEREAS, all requirements of the City Charter relating to the preparation and
consideration of the annual 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 2012 -13 Fiscal Year as revised by the City
Council via the Budget checklist is hereby adopted. The total approved appropriation of $260,101,781
Attachment B
($241,392,568 with Transfers Out), plus any items on the approved Budget Checklist attached as
Attachment A, has been allocated to the following funds in the amounts hereinafter shown:
Fund
General Fund
Ackerman Fund
CDBG 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
Library Debt Service
Civic Center
Marina Park
Sunset Ridge Park
LG Headquarters
City Hall Reuse
CIOSA Fund
MISC SAH Projects Fund
Insurance Reserve Fund
Retiree Medical Fund
Camp. Absence Fund
IT Strategic Fund
Equipment Fund
Water Fund
Wastewater Fund
Total Appropriations
Operating
Budget
$148,045,685
5,000
325,218
250,000
10,500
100,000
0
0
2,484,738
0
0
0
161,086
1,200,000
10,631,267
7,500
0
0
0
0
137,500
0
5,828,510
6,698,000
1,964,100
5,204,242
4,172,343
18,275,823
3,087,501
$208,589,013
Capital Budget
$4,277,000
0
100,000
0
0
0
5,242,700
6,649,742
1,822,500
2,322,000
168,900
405,000
0
0
0
800,000
6,849,600
9,337,426
1,500,000
500,000
0
1,170,800
0
0
0
0
0
9,680,200
686,900
$51,512,768
Total Budget
$152,322,685
$5,000
$425,218
$250,000
$10,500
$100,000
$5,242,700
$6,649,742
$4,307,238
$2,322,000
$168,900
$405,000
$161,086
$1,200,000
$10,631,267
$807,500
$6,849,600
$9,337,426
$1,500,000
$500,000
$137,500
$1,170,800
$5,828,510
$6,698,000
$1,964,100
$5,204,242
$4,172,343
$27,956,023
$3,774,401
$260,101,781
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 inspection.
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 12 Id day of June, 2012.
MAYOR
ATTEST:
CITY CLERK
Fiscal Year 2012 -13 Budget Adoption
Submitted by
City Manager, Dave Kiff
Finance Director, Tracy McCraner
June 12, 2012
Today's Budget Presentation
■ Core Budget Principles
■ Budget Checklist
■ FY 2012 -13 Budget with Checklist
■ Recommendations
Core Budget Princi ales
■ Keep generally flat with FY 2011 -12
■ Includes $8M in structural cuts
• Account for contractual obligations
• Protect reserves
• Invest in Smarter: IT & Workforce
• Invest in Facilities:
• CIP
-
$3.6M
instead
of
$2.OM
• FFP
- $7.5M
instead
of
$5.OM
FY 2012 -13 Proposed Budget & Checklist
• May 3, 2012 City Manager's FY 2012 -13 Proposed
Budget $260,101 .781 (all funds)
• Council Policy F -3 " all budget changes will be
added to the Budget Checklist"
• May 22, 2012 City Council reviewed the initial
budget checklist
• June 12, 2012 City Council will review changes
subsequent to May 22, 2012, and approve the
checklist
Budget Checklist- revewedy
City Council on 5/22/2012
Project /Program Description:
1) Increase funding for Special Events
2) CPS parking meter contract amendment
3) Reduce City Hall Interim Site Imp. to $100K
4) Streetlight Replacement Program
5) Purchase SCE 20A Credits (worth $2,157,903)
Ul
7)
Postpone Lifeguard HQ Rehabilitation 1 year
Finish Local Coastal Plan — Implementation Plan
Appropriation
8) Bayside Cove Public Walkway (Bal Island Access)
$12,200
-$436,617
- $400,000
$150,000
$974,000
- 1,350,000
9) Eastbluff Bicycle Lane @ Jamboree Rd. (grant match)
10) Eastbluff Bicycle Lane @ Jamboree Rd. (grant)
11) Newport Coast Drive Monument Signs
12) Old Newport Blvd. Streetscape
$75,000
$40,000
$35,500
$236,000
$50,000
$50,000
Revenue
$236,000
Budget Checklist- _reviewed by
City Council on 5/22/2012
Project /Program Description:
1) Bristol St. S. Median Landscaping
(grant match)
Appropriation Revenue
2) Bristol St. S. Median Landscaping (grant)
3) Balboa Boulevard Landscaping (design)
$125,000
$375,000 $375,000
$265,000
4) CdM Entry Improvements (design /BID $25K) $25,000
Blue denotes Neighborhood Revitalization Project
$25,000
Budget Checklist items -requiring City
Council _review tonight
Project /Program Description:
1) Balboa Island Historical Society
2) Arts Commission — Museum Tour
3) Eliminate 3 MOD positions
4) Purchase 3 Fire vehicles (restricted reserves)
Appropriation
$15,000
$5,000
- $249,170
$1,793,000
5) Delete irrigation project
6) Irvine Ranch Conservancy (transfer from PW to RSS)
7) Increase Bay Beach Sand Mgmt. CIP
8) Major Arterial Street Repair (Restricted Reserves)
9) Newport Blvd & 32nd Street Modification
10) Balboa Blvd. Channel Road (Change Prop 1 B fund)
11) Balboa Blvd. Channel Road (transfer to Prop 1 B)
'.•1 111
$5,550 **
$200,000
$327,000
$50,000
$692,000
- $692,000
Revenue
$692,000
12) Park Avenue Over Grand Canal Bridge (design) $150,000 $150,000
** difference = CPI adjustment per contract
Budget with Checklist Items
• CIP Rebudgets are requests to close out / carryover CIP
project budgets net 60 459 "all funds"
• Total Expenditure Budget $262,594,703 (includes fund
balance reserves built up in previous years for long -term CIP projects)
■ Total Revenue Budget $2375695,240
FY 2012 -13 Proposed Budget & Checklist General All Other
Proposed Operating & CIP Budget
Supplemental Expenditure Budget Requests
CIP Rebudgets /Changes
Total FY2012 -13 Expenditure Budget & Checklist
Proposed Revenue Budget
Supplemental Revenue Budget Requests
Total FY 12 -13 Revenue Budget Checklist
Fund
Funds
Total All Funds
$
152,322,685
$
107,779,096
$ 260,101,781
1,408,984
1,023,479
2,432,463
(73,833)
134,292
60,459
$
153,657,836
$
108,936,867
$ 262,594,703
General
All Other
Fund
Funds
Total All Funds
$
155,801,396
$
80,415,620
$ 236,217,016
25,000
1,453,224
1,478,224
$
155,826,396
$
81,868,844
$ 237,695,240
Conclusion
■ FY 2012 -13 Budget remains balanced
■ Checklist Items were funded by:
• Re- prioritizing CIP projects
• Restricted Fund Reserves
• New revenue (grants and state reimbursements)
■ Net reduction of 11 full time positions
. N-16T
F
_Recommendations
• Hold public Hearing
• Approve Checklist Items
■ Approved Checklist Items will become part of Final Budget
■ Approve Resolution adopting the City Manager's
Proposed Budget & approved Checklist items
City of Newport Beach
FY 2012 -13 Proposed Budget
City's budget documents can be accessed at:
www.newportbeachca.gov/budget
11
LEGAL NOTICE
NOTICE IS HEREBY GIVEN THAT the City Council of the City of Newport Beach will hold
a public hearing regarding Preliminary Budget for the 2012 -13 Fiscal Year, pursuant to Section
1102 of the Newport Beach City Charter.
NOTICE IS HEREBY GIVEN THAT said public hearing will be held on the 12`h day of June,
2012, at the hour of 7:00 p.m. in the City Hall Council Chambers, 3300 Newport Boulevard,
Newport Beach, CA 92663, at which time and place interested persons may appear and be heard
thereon.
TOTAL BUDGET ALL FUNDS - INCLUDING CAPITAL IMPROVEMENTS:
Salaries and Benefits $125,378,498
Maintenance and Operations 68,081,362
Capital Outlay 3,000,901
Capital Improvements 51,512,768
Debt Service 12,128,252
Total Budget 260.101,781
For questions please contact Tracy McCraner, Finance Director, at (949) 644 -3127 or
tmccraner(@newportbeachca. gov.
Leilani rown, Ci y lerk
City of Newport Beach
PROOF OF RE( IENED
°PUBUCATION 2112 JR1 i I AN 9. 42
STATE OF CALIFORNIA)
) SS.
COUNTY OF 0RANGE )
I am a citizen of the United States and a
resident of the Count of Los Angeles; I IEGUINORCE
County g r NOTICT IS iNE !eY
am over the age of eighteen years and GIVEN 'THAT tq City
i Council of the City of
not a party to or interested in the notice Newport Beachrwillhold
ai pubbc,hearmg regard-
ing Prelirninary Budget.
published. I am a principal clerk of the far the 201213, "Fiscdl
NEWPORT BEACH /COSTA MESA Year, pursuant to'Sec-
6on'1102.tof the News
DAILY PILOT, which was adjudged a CBa ter.B a ach ;City
g
newspaper of general circulation on Nom<E_.is' HEREBY
GIVEN THAT said pub -
September 29 1961 case A6214 and he heanng; will be held,
� � i on theT2thl iday, �ofi
June 11, 1963, case A24831, for the '� ?G,2; ,ai —fin
hour of `7100 p -m.
City f Costa Mesa, Count of Orange, the City 'Hall tGeunci0
y y g Chambers;, 9300 Now-
and the State of California. Attached to nor+ Bou1ovhra; Npw-
porf Bodah �At
this Affidavit is a true and complete co at,whichAlme and plac9Zbb$,
e
p copy interested persons may
as was printed and published on the appear and a teard
P p thereon:
following date(s): TOTAL. BUDGET ALL
FONDS - INCLDDING
C kPf TA L. 1M
PROVEMENTS-
Saturday, June 2, 2012 Salaries and Beoee
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Executed on June 7, 2012
at Los Angeles, California
A(,�ULle (C lwix i( —
Signature
a
Leilani, Brown,',City Clerk
City of Nowport;Beich