Newport Beach’s general fund was in better shape last year than originally expected, largely because consistently high property values generated a healthy stream of tax revenue, according to a report scheduled for consideration at Tuesday’s City Council meeting. The fiscal year has ended.
The general fund had a surplus of $10.8 million by the end of the fiscal year that ended June 30, the report said. That’s nearly $2 million more than the $8.9 million surplus projected in estimates conducted in May.
Despite a 6.7% decrease in consumption tax revenue compared to last year, the company was in the black. In Newport Beach, sales were down in all industry groups except restaurants and hotels, according to city officials. Automotive and transportation businesses were particularly hard hit as high interest rates limited access to credit.
The city collected $43.4 million in sales tax last fiscal year. This is Newport Beach’s second largest source of general fund revenue, contributing approximately 15% of the fund’s value.
About 50% of Newport Beach’s revenue comes from property taxes, which generated more than $146.1 million last fiscal year. City officials say total real estate value in the city has increased from $71.2 billion to $75.9 billion and hasn’t declined in the past 20 years. The median price for a single-family home in Newport Beach was $3,845,000 in 2023.
The city also saved about $9.6 million in expenses. The primary source of unused funds came from vacant staff positions and various contracted services.
“Conservative budgeting and sound fiscal policy have resulted in a trend of general fund operating surpluses and high reserve levels in recent years,” Deputy Treasurer Shelby Burguan said in the report. . “The city is well-positioned to continue providing a high level of service to the community.”
Council considers language regarding ADUs
The City Council is scheduled to revisit ordinance updates regarding accessory dwelling units (ADUs, often referred to as “granny apartments”) and junior accessory units (JADUs) at Tuesday’s meeting. The changes are intended to bring Newport Beach’s municipal ordinance into compliance with a new law signed by Gov. Gavin Newsom in September. It goes into effect on January 1st.
By allowing this rule to apply to JADUs, AB 2533 essentially applies to unpermitted ADUs built before a certain date, as long as they comply with health and safety regulations. Extend the provisions. The grace period has also been extended by two years to include units built before 2020.
SB 1211 updates state law that prevents city officials from requiring applicants to identify alternative parking if a garage or carport is lost due to construction of an ADU, and also applies to uncovered parking spaces. so that The legislation also increases the number of ADUs allowed on lots with existing multifamily housing from two to a maximum of eight.
Proposed updates to Newport Beach’s municipal ordinance related to the new law were reviewed by the California Coastal Commission. A revised version, including the committee’s recommendations, is expected to be approved at a City Council meeting.
Initial design for Collins Island Bridge replacement
The council will discuss the early stages of replacing the Collins Island Bridge, which connects a portion of the property to the northwestern tip of Balboa Island. The project began the design phase in 2022 and was subject to environmental review. The findings, released this year and made available to the public from July 23 to August 21, revealed no significant negative impacts associated with replacing the bridge.
City officials report that the existing bridge was built in 1953 and is still functional but “nearing the end of its useful life.” The new Collins Island Bride will be widened to accommodate walking lanes, sidewalks and concrete barriers “to protect against projected sea level rise.” Additional seawalls will also be constructed to complement the existing seawalls to further protect the area from storm surges and storm surges.
The Newport Beach City Council will meet Tuesday at 4 p.m. at the City Council Chambers at City Hall, 100 Civic Center Drive.
