The Financial Review Committee meeting on April 24, 2023, in Dana Point, California, highlighted significant revenue projections and budgetary challenges for the upcoming fiscal years. The city anticipates a record high in tax revenues, estimating $46.5 million for fiscal year 2024 and $47.9 million for fiscal year 2025, primarily driven by transient occupancy tax (TOT) revenues. However, a cautious outlook was presented, with a projected decrease in TOT to $15.6 million for fiscal year 2024, down 3.7% from the previous year, due to expected declines in tourism and business bookings.

The committee discussed the city's taxable assessed value, which saw an impressive growth of 8.9% in the previous year, but is projected to slow to a 4.2% increase for the next fiscal year. Sales tax revenues are also expected to decline, with a forecast of $6.7 million for fiscal year 2024, reflecting a 6.9% decrease attributed to inflation and a slowdown in economic activity.

Personnel costs remain a significant budget item, with a total of $10.7 million allocated for fiscal year 2024, marking a 10.1% decrease largely due to a one-time payment to CalPERS. The public safety budget, which includes the contract with the Orange County Sheriff Department, is set at $15 million, although this figure may rise following ongoing labor negotiations.

The committee emphasized the importance of a seven-year capital improvement plan to address deferred maintenance and infrastructure needs, with a proposed increase in transfers to this fund. As the city navigates these financial projections, the committee's discussions underscore the balancing act of maintaining services while preparing for potential economic headwinds.