Newport Beach City Council to Discuss Housing Component and Review Year-End Budget Results


The housing component update returns to the Newport Beach City Council podium for discussion on Tuesday, this time with comment from the state’s Department of Housing and Community Development.

The council will not take any action, but will hear comments from state and city staff on their efforts to reconcile the housing project with the state.

Local courts are required to update their housing component every five or eight years. This element is included in each city’s master plan, which is a government “blueprint” for how a city or county will develop and adapt over the years between updates.

According to the state agency, for the private market to adequately meet the critical need for more housing, local governments must adopt plans and regulatory systems that provide opportunities for development.

As part of that, Newport officials will need to plan for the required growth of at least 4,845 housing units, according to the Southern California Assn. governments, which assigns regional housing needs assessment numbers for Orange, Los Angeles and four other counties in Southern California.

Newport Beach is joined by nearly half of the cities in Orange County that have opposed the exponential growth expected over the next decade, but all calls for the numbers have failed.

To date, there have been five “cycles” of updating such housing items, according to the State Department’s website. The next such update was due to pass before October 15, but the state has also provided for a 120-day grace period. This means Newport Beach technically has until February 22 of next year to complete the process without incurring a penalty.

The city submitted the item for review in August.

Budget 2020-21 to review

City Council will also receive a preliminary report on revenues, expenses and estimated fund balance for the fourth quarter of the last fiscal year, which ended in June.

City staff said incomes appeared to be higher and spending lower than expected when budgeting in April 2020 and the report acknowledges the impacts of the pandemic, the subsequent reopening of the state in June. and the Delta variant of the coronavirus which causes COVID-19.

Property tax and sales tax were higher than expected, but transitional occupancy tax – also known as hotel tax – was the hardest hit revenue stream for the city.

Council will consider the recommendation of city staff to allocate $ 31 million in excess funds to be allocated to the city’s annual unfunded contribution to CalPERS; the obligations to replace facilities and infrastructure within the framework of the facilities financing plan and the port and beaches master plan; and the city’s capital improvement plan and neighborhood improvements.

They will also consider allocating $ 10.1 million of American Rescue Plan Act funds to the capital improvement program for the upcoming budget process for the next fiscal year.

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