City Gets All Accused Embezzler’s Assets : Agreement: Dixon’s homes, beloved art collection help make up for Newport Beach’s missing $1.8 million.

More than anything else, friends said, Robert J. Dixon loved art.

Now, his extensive collection belongs to the city of Newport Beach, as does nearly everything else he owns.

The former Newport Beach utilities director, accused of embezzling $1.8 million of city funds, signed a court stipulation last week that gives the city his last paychecks; personal accounts; a Huntington Beach townhouse; a condominium in Montego Bay, Jamaica; land in Arizona; a BMW; jewelry; stock and bonds; 39 credit cards and his art collection.

For the esoteric art collection--a panoply of 358 paintings, portraits, photographs estimated at $373,000, according to court records--city officials will hire art experts to appraise the collection’s worth, said Newport Beach City Atty. Robert H. Burnham.

“We’re talking to everyone--experts on books, jewelry, photographs, paintings--but we haven’t selected anyone yet,” Burnham said Thursday. “We’re retaining consultants to help us to expeditiously . . . maximize our returns.”

Dixon, a 17-year employee with the city, was arrested in January and charged with two counts of felony embezzlement. He allegedly cashed checks that he had the city write to pay nonexistent property owners for underground water easements.

Dixon, 47, has pleaded not guilty to both counts and remains in Orange County Jail in lieu of $500,000 bail. He is scheduled to return to Harbor Municipal Court on March 5 for pretrial motions.

Once liquidated, Dixon’s assets still will not match the $1.8 million the city is suing for in its civil suit against Dixon, said City Manager Robert L. Wynn Thursday, but “it’s a significant start.”

City officials have yet to decide how they will go about selling Dixon’s assets, said Wynn, but “an estates sale” is likely.

“We have every asset he used to own, and now the city is deciding how we can go about repaying the funds” Dixon allegedly stole, said Wynn.

As for the difference between the value of the liquidated assets and the $1.8-million loss, Dixon will still be held accountable, Burnham stated in court records. The civil suit is also asking that Dixon pay more than $500,000 in interest lost on the funds he allegedly embezzled.

Superior Court Judge Ronald L. Bauer also ordered in the stipulation that neither Dixon nor his relatives can transfer money or sell assets he acquired before January. However, in an earlier agreement, the city agreed that part of Dixon’s assets would be used to pay his attorneys.

Until his arrest in Newport Beach, Dixon had a sterling reputation with his co-workers and was one of the finalists vying to replace Wynn, who will leave the post in March.

The bachelor lives in Huntington Beach, where friends describe him as a patron of the arts. They also described Dixon as an avid traveler and art collector who took vacations abroad to attend art auctions. His art collection includes a $9,000 Irving Penn “Ballet Theatre 1947” photograph and a $5,000 Clinton Smith “Floating Leaves” photograph, according to court records.