Laguna Beach City Council Regular Meeting - March 6, 2017

March 6, 2017

Executive Summary

- The Laguna Beach City Council convened on an unspecified date, opening with the Pledge of Allegiance and conducting roll call confirming the presence of Council Members Unknown - No phonetic match in known names, Whalen, and Unknown - No phonetic match in known names, Mayor Pro Tem Boyd, and Mayor Eisman. - Public comments from Stan Fryman and Glenn Yamaguchi expressed gratitude to the City Council for requiring encroachments at 342 Y Place to be removed or approved before final inspection, resolving a significant property dispute. - Director of Finance and IT Gavin Curran presented the city's first five-year long-term financial assessment, forecasting that general fund expenditures will outpace revenues beginning in fiscal year 2020-21, resulting in deficits of approximately $1 million in FY 2020-21 and $2.5 million in FY 2021-22. - The primary financial challenge identified was escalating pension costs driven by CalPERS lowering the discount rate from 7.5% to 7%, which is expected to increase the city's unfunded pension liability by 35-40% and normal pension costs by 2-3%. - The Council discussed strategies to address pension obligations, including phasing in future pension inc

Key Decisions

- Approved the city's first five-year long-term financial assessment projecting budget deficits beginning in FY 2020-21. - Directed staff to return in May 2017 with additional strategies to address pension unfunded liabilities, including analysis of phasing in future pension increases and applying mid-year savings to pension payments. - Directed staff to analyze additional possible revenue sources focused on visitors, including potential restaurant/bar surcharges and parking fine increases. - Denied the appeal and sustained the Design Review Board's approval of the project at 11 Lagunita Drive