Newport city manager offers ‘sobering’ assessment of local pension costs
Newport Beach City Manager Dave Kiff addressed topics such as city pension obligations and medical marijuana as the guest speaker at Thursday morning’s Wake Up Newport meeting at the Central Library.
Kiff, city manager since 2009, said during the Newport Beach Chamber of Commerce-sponsored forum that Newport does not face bankruptcy over its rising pension costs, though it is a problem that keeps him awake at night.
He said the city allocates about $40 million a year toward employee pensions; $9 million of that is paid by the employees themselves.
The future fiscal challenge, Kiff added, is to somehow allocate extra millions so Newport can stay on top of its pension obligations.
“I haven’t got there yet, frankly,” he said. “I know this is going to be sobering to the community.”
Paying for pensions may come only after cuts to city staff or services, he said.
“We are not alone,” Kiff said. “Every city is going to see” difficulties with pension obligations.
Regarding marijuana, which became legal for recreational use in California under an initiative passed by voters in November, Kiff noted that cities will still be able to regulate the sale or manufacturing of the drug as they see fit.
Given California’s new law, marijuana is scheduled to be discussed by the City Council in January, he said.
Kiff also mentioned that having the Newport Beach Police Department take over policing at Newport Harbor — a job currently handled by the Orange County Sheriff’s Department — could be a priority in 2017.
He said it likely would be a different model that is less law enforcement-driven and more community service-driven, similar to park rangers.
Twitter: @BradleyZint
