Laguna Beach Town Hall Meeting - February 19, 2026

February 19, 2026

Executive Summary

City Manager Dave Kiff, Assistant City Manager Gavin Curran, and legal counsel Mark Orgill conducted a town hall meeting on February 19, 2026, to present Laguna Beach's budget situation and discuss potential revenue measures. The city's general fund budget shows approximately $98 million in expenditures against $96 million in revenue, creating a funding gap that the City Manager plans to address through a combination of cost reductions (targeting $4 million) and potential new revenue sources. Two potential voter-approved revenue measures were discussed: a 2% increase to the Transient Occupancy Tax (TOT) that would generate approximately $3 million annually, and a 1% sales tax increase that would generate approximately $7.8 million annually. City expenditures are growing faster than revenues due to rising labor costs, insurance costs, and expanded services including fuel modification zones (costing approximately $900,000 per pass with three passes needed this year). A facilities master plan identified $314 million in maintenance needs over 20 years, with improvement options ranging from $186 million to $440 million. Fire Station 4 replacement in South Laguna is underway with expect

Key Decisions

- City Manager Dave Kiff is targeting $4 million in operational expense reductions in the proposed budget for fiscal year 2026-2027 - The City Council directed staff to make a decision on Laguna Canyon Road acquisition by March 2026, with a full staff report presenting all alternatives - The City Council directed staff on the first meeting in February to move forward with exploring charter city status, focusing on carving out parking enforcement authority and greater fine authority - No formal votes were taken during this town hall meeting as it was an informational presentation and community