NEWPORT BEACH, Calif. — Business is almost back to normal in Newport Beach with money in its next budget earmarked for projects suspended during the pandemic.

Revenue losses forced the finance committee to look for any expenses that could be cut or delayed, fearing a downturn similar to the 2008 Great Recession.

Hotels stopped housing guests, obliterating the Transient Occupancy Tax and revenue from local business plummeted.

While confidence has improved, it hasn’t returned altogether.

“The economy is still not recovered,” said Newport Beach Mayor Brad Avery. “There’s a lot of herky-jerkiness in the market.”

The city council’s budget, accordingly, is cautious. While it approved a $309 million budget, $55 million will be set aside for reserved funds. The city is adding two new positions but has largely allowed the number of city-paid employees to drop over the years to reduce future pension costs. It’s already spending $35 million this year to cut into its CalPERS liability.

The city also faces expensive preventive projects, like dredging its harbor. That project has claimed $8 million from the city budget, matching what council members successfully lobbied for in trips to Washington, D.C. The city is still $4 million short, and is eyeing other places the money could come from. Handling that problem now, Avery said, ultimately makes it cheaper to deal with.

The city also plans about $4.5 million in harbor spending including more public docks where bay cruisers can tie off Duffy boats.

And there’s the continuing stewardship of property protection on Balboa Island. The city already placed a nine-inch sea wall to protect against high tide, but with certain wind conditions even tides considered safe can become a problem. Add in rain fall — it’s unusual for the city to see both at the same time — and that has necessitated the plans for new drainage on the island. That project could cost in excess of $10 million.

“With the way climate change is going that threat is just going to increase,” Avery said. “We’re working on that all the time to just beef up the infrastructure in anticipation of these events.”

But the city prides itself on providing full services, and has recently allocated more money to housing and care for homeless people who move through or take up residence in town. That spending includes a partnership with Costa Mesa on a bridge shelter, plus $1 million earmarked this fiscal year for its own services.

One of the major stalled expenditures last year was on the lifeguard clubhouse and the new lecture hall for the library. It was initially projected to cost $7 to $8 million, but Avery said it has grown in scope. Where the final figure ends up is unclear. Fears over the economic impact of COVID-19 have largely abated and money has returned for both projects. 

But residents have been wary of lengthy building projects after construction of the new civic center became a lightning rod of local political debate. Once projected to cost $49 million, the project grew in size, scope and cost to hit over $100 million.

“Both of these projects are wonderful assets to the community,” Avery said. “We’re listening to all the options.”