What do we find that is noticeable and worth talking about? The city of Newport Beach and its ascension in the rankings, compared to other cities in the county.

The cities were ranked by their unrestricted net position (found in their annual comprehensive financial reports) divided by the population, providing a useful tool for demonstrating a city’s fiscal health. The negative balance sheets are shown below in parentheses, while the positive one is not.

Seeing the city improve from 32nd place to 17th place since 2017 prompted me to contact some of Newport Beach’s current and former city councilmembers for the city’s “secret sauce.”

The city also established a finance committee, comprised of three city councilmembers. When Scott Peotter was on the council, four financially focused public members were added, increasing it to seven members. The meetings are open and transparent. One goal was to achieve a reserve of 25 percent of the general fund. Another goal was to pay down the defined benefit pension plan unfunded liability to zero by the years 2029-2030.

Taking a very conservative approach, the annual budgets included all of the necessary staff positions, even though some might have been vacant at the time. When the city had a budget surplus, half would be allocated to retiring pension and other debt, and the other half would go to public works on a one-time only basis.

Should a necessary building project be identified, like a fire station or library, it would be fully planned, with a multi-year timeline and budget, from concept to completion. When a new city manager is selected, having a strong background in the finance area is a requirement. And rightsizing city staff was a critical priority, reducing the number of employees on June 30, 2009, from 832, down to 736 five years later.