Newport council to vote on $306.9-million budget

The Newport Beach City Council will vote Tuesday on the city’s proposed $306.9-million budget for the 2017-18 fiscal year.

Broadly, the city plans to direct $166.2 million toward salaries and benefits, $96 million toward maintenance and operations, $33.9 million toward capital outlay and improvements and $10.8 million toward debt service. The fiscal year starts July 1.

One of the key features of the proposed spending plan is an additional $9.1 million toward the paydown of Newport’s unfunded pension liability.

The city is trying to fill a $353-million pension hole. It was already set to spend about $16.2 million in normal costs and a $25 million “default,” or compulsory, payment under a plan defined by the state. The $9.1-million addition would bring the city’s total net cost next fiscal year to $40.3 million after deducting $10 million paid by city employees.

The move would save the city about $15 million in interest over the next 20 years, officials say.

The next budget also proposes infusing $6 million into the harbor and beaches capital fund, its largest boost yet for infrastructure projects along the water. The infusion comes from surplus funds.

Newport Heights sidewalks

The council will vote on a $4-million package to repair alleys in Newport Heights and add neighborhood sidewalks.

The alley replacement follows sewer work recently completed in the area. The sidewalks, along 15th Street between Santa Ana and Irvine avenues and along Irvine Avenue and Cliff Drive, are intended to improve access for children walking to and from Newport Heights Elementary and Ensign Intermediate schools.

City staff recommended that Garden Grove-based Nobest Inc. receive a $3.385-million contract. The balance of the $4 million is for contingency, engineering, geotechnical services and incidentals.

New fire truck bay

The city is prepared to spend $1.1 million on a new truck bay for the fire station at Irvine Avenue and Dover Drive, according to city staff.

Fire Station No. 6 was built in 1957 with a bay to accommodate equipment of that era. Emergency response vehicles have since grown too large for the garage doors, and the newest truck is parked under a tent when it’s at the station.

For economic reasons, city staff recommends a standalone replacement bay rather than one attached to the office and living quarters of the station. When it’s time to replace that side of the station, the new office and living space can attach to the new bay, according to a staff report.

City staff recommended that Newport Beach-based Metro Builders and Engineers Group Ltd. receive a $978,000 contract. The balance of the $1.1 million is for contingency, geotechnical services, inspections and incidentals.

Tuesday’s council meeting will begin at 7 p.m. at City Hall, 100 Civic Center Drive.

hillary.davis@latimes.com

Twitter: @Daily_PilotHD