Community Members: 

This week I had the pleasure of providing a City update to an engaged audience at the Newport Beach Chamber of Commerce's Wake Up! Newport forum. I presented an overview of the City budget, including trends and projections, an update on capital improvement projects, and a discussion of current issues. 

Some highlights included:

An update on City revenues. Thanks to the strength of our local economy and the Newport Beach housing market, all major City revenue sources are up to record levels. Property tax revenue increases reflect higher median home prices and assessed value growth. Sales tax revenue has rebounded strongly from a pandemic-related dip, due to higher auto sales, retail sales and restaurant activity. An especially strong comeback can be seen in transient occupancy tax revenues, reflecting higher room rates and increased occupancy in our hotels and short-term rental properties.

An overview of capital projects. With increased local revenues, federal recovery funds and private donations, the City is investing in several capital improvement projects to upgrade critical infrastructure and improve the quality of life in our community. These projects include the Junior Lifeguard Building, the Library Lecture Hall, Superior Avenue Bridge, Balboa Island drainage, and utilities infrastructure upgrades. 

A discussion of current challenges facing the City, including employee recruitment and retention, the General Plan update, implementation of the recently approved Housing Element update, and climate change resiliency. 

For those who missed it, you can view a PDF of my presentation as well as a video on the City's YouTube channel. 

City Manager, Grace K. Leung

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