Laguna Beach 3:00 p.m. City Council Meeting Budget Workshop - May 12, 2026

May 12, 2026

Executive Summary

- The Laguna Beach City Council held a budget workshop on May 12, 2026, with the proposed fiscal year 2026-27 budget maintaining a 20% contingency reserve ($19 million) and a 7.3% disaster contingency reserve ($7.4 million). - The budget eliminates eight full-time positions and reduces departmental requests by approximately $4 million while protecting public safety and stewardship programs. - The budget accommodates significant financial pressures including two years of reduced Transient Occupancy Tax (TOT) revenue from hotel closures (particularly Pacific Edge Hotel), approaching peak CalPERS unfunded liability payments increasing by $2 million, and conservative revenue projections amid economic uncertainty. - General fund revenues are projected at $103 million with modest 2.2% growth, while overall citywide revenues decrease 2.7% to approximately $163 million. - Capital Improvement Program funding decreases 11% ($1 million), with focus on completing existing projects including Fire Station 4 replacement, Cleo Beach access, and Emergency Operations Center (EOC) relocation. - The Council provided direction on housing fund strategy, technology investments including drones and AI wil

Key Decisions

- The City Council provided direction to proceed with the May 12, 2026 budget workshop presentation of the proposed fiscal year 2026-27 budget. - The Council directed City Manager Dave Kiff to address the housing fund shortfall to meet the $2.5 million state matching grant requirement. - The Council provided guidance to explore technology investments including AI wildfire detection cameras, drones for fire suppression, public safety synchronization (Opticom), and establishment of a real-time crime center/EOC facility. - The Council indicated interest in developing a permanent housing funding s