[{"_1":2,"_122":-5,"_123":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99,111],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6561325,"mediaKeyId","3292644-9de360a19b36206e512f1da473afb3e5","parentId",3292644,"title","Laguna Beach staff present $161 million proposed budget; council hears warnings on transit subsidy, pension risk","audioSeconds",2694,"startMs",553000,"endMs",3247000,"viewUrl","/Search/View?dp=1&key=3292644-9de360a19b36206e512f1da473afb3e5&start=553&end=3247","thumbnailUrl","https://assets.pipeline.soar.com/3292644-9de360a19b36206e512f1da473afb3e5/thumbnail_553000.jpg","articleUrl","/articles/6561325/Laguna-Beach/Orange-County/California/Laguna-Beach-staff-present-161-million-proposed-budget-council-hears-warnings-on-transit-subsidy-pension-risk","mediaUrl","https://secure.pipeline.soar.com/6561325-f68f9d43b9c537797bf828788ca5c908/orig.mp4?Expires=1775219834&Signature=AJz7rQSCyTclECUbF6eaaFvNeDgKusp5zPGrUT-SCB1VQJ3FUOEBOr0qFAsVCPinVMqa4SNMjkt7XFDvHLR1yFLUoAmI1lxkIoFMmJ2YDYw3-Np7NKf4IFIA5RsVpLqwmvO-KCDLWCbsf~snfRwGcIDBB-puB5H1colFvdLYgINXqO5eRCLMu8FyYv7BBJsZQIw5WAbw2ZkJC513F4YM5V6nj4cdI~fsMhIQ0m5X1QBY89J9BDQ-Apjexi-ExySFeURg2UjWJn6maDSwGdxAqVHIgPRF4ZClzFupXEwr2V6PvfzVwdIc4as2dFSBu~ADQ8YTcHDF0J-NpHLLw62czw__&Key-Pair-Id=KUT5TJCACFTXG","author","CityofLagunaBeachCA","date","2025-05-14T01:43:09.327Z","article","Laguna Beach City Council members reviewed a proposed $161 million all‑funds budget for fiscal year 2025–26 at a special meeting that city staff described as a workshop for council feedback ahead of final adoption scheduled for June 24.

City Manager (presenting staff) told the council the all‑funds proposal totals about $161,000,000 with a general fund appropriation of about $95,000,000 and about $97,000,000 in general‑fund expenditures, producing a requirement for approximately $2,300,000 in transfers from the capital improvement and parking funds to balance the plan. Staff said reserves are fully funded, including a 20% general fund reserve and a disaster reserve of about $7,200,000.

The proposal includes roughly $28,000,000 in capital improvement program (CIP) projects for the coming year, a roughly $4,000,000 allocation to wildfire mitigation, and expanded transit and on‑demand services partially funded by Orange County Transportation Authority (OCTA) grants, staff said. City Manager and assistant city manager Gavin Curran emphasized that revenue estimates were modestly conservative and that the council could request refinements before adoption.

Why this matters: the draft mixes one‑time transfers with recurring spending and faces long‑term pressures from pension costs, labor agreements and higher operating costs. Staff framed a tiered risk strategy — holding vacancies now (tier 1), then examining contracts and incentives (tier 2), and deferring capital projects if revenues weaken (tier 3) — with decisions tied to early fiscal‑year revenue performance.

Details and council questions
City staff told council that property tax is performing well (projected to rise roughly 4.2% from the current estimate) and will help offset weaker sales‑tax and transient‑occupancy‑tax (TOT) receipts tied to hotel remodelings and rooms offline. Staff said TOT and sales tax have been “fairly flat” over recent years and that the draft budget relies in part on a one‑time transfer to balance recurring expenditures.

Gavin Curran, assistant city manager and budget presenter, walked the council through revenue and expenditure tables showing a 1% projected increase in general‑fund revenues and a 3% rise in general‑fund expenditures compared with this year’s estimates. The transit operating budget was shown at about $9,000,000, of which roughly 40% is grant funded, meaning the remainder is supported by local sources, including sizable transfers from the parking fund.

Pension liability and contingency planning
Council members pressed staff about the city’s unfunded pension liability. Staff said Laguna Beach’s unfunded liability has varied with CalPERS investment returns and market movements; the city has made large one‑time payments in the past and staff is evaluating options including a trust or other prepayment strategies to smooth future rate spikes. Staff recommended a separate, in‑depth review of pension options.

Public comment and council direction
Speakers during public comment urged prioritizing fire‑safety spending. A speaker representing the South Laguna Civic Association urged the council to delay a proposed Aliso Beach parking expansion and reconsider whether new parking would attract more day‑trippers while delivering limited net revenue. Several speakers urged the council to use a larger share of available revenue for wildfire mitigation and fire prevention.

Next steps
Staff said the council will consider final adoption of the budget on June 24, when the council is also expected to adopt a spending limit (Gann limit), reaffirm funding resolutions, and adopt a master fee schedule. Council members directed staff to return with more precise TOT and grant estimates, options for community‑development fee adjustments, analysis of transit service levels and contracts tied to the upcoming RFP, and a recommended approach to pensions and a potential Section 115 trust.

Ending
No formal votes were taken at the workshop; council members asked for follow‑up reports and analysis on revenue assumptions, service‑level tradeoffs, pension options and wildfire spending ahead of the June 24 adoption hearing.","mediaType","Video","parentTitle","City Council Special Meeting - May 13, 2025","oneSentenceSummary","Laguna Beach City Council members reviewed a proposed $161 million all‑funds budget for fiscal year 2025–26 at a special meeting that city staff described as a workshop for council feedback ahead of final adoption scheduled for June 24.","taxTitle","Laguna Beach, Orange County, California","taxId",56774,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6561307,"Laguna Beach HR reports 2024 vacancy rates within county norms; current year‑to‑date rate lower",164,4472000,4636000,"/Search/View?dp=1&key=3292644-9de360a19b36206e512f1da473afb3e5&start=4472&end=4636","https://assets.pipeline.soar.com/3292644-9de360a19b36206e512f1da473afb3e5/thumbnail_4472000.jpg","/articles/6561307/Laguna-Beach/Orange-County/California/Laguna-Beach-HR-reports-2024-vacancy-rates-within-county-norms-current-yeartodate-rate-lower","https://secure.pipeline.soar.com/6561307-27ce76c2727e12e10363128c2c72bb8e/orig.mp4?Expires=1775219834&Signature=jUvTussFcXXYdp355nAfrRkUm1VJ9ht1mj9-Hq5EzOCTQP8YDenRUv1lrQz10rKm22Jg7S~cVhIyFOK-K7aLr-uS88YgLURGaONICv63gqWPEWxl0LcjNzF38pZ7j7OXyfb5MHlahuzXddrTaLdapE5oBl1PT6Rvyo~EHh~0u1QOCBTCr6xXXKFL-yI8Lxq14daoIOUyRD4ZPrhJDgU-OMEYNupH~MnjvaYvIA2-QJPp~oHpGfGjsoK8WSnXy2c6ZCl6lcCaxwdmRSD7dlBkLpDaqFkJDPGA8avM26TDhYkEBfykT4vpm4SYOsHFG8De7ff0hqlUhoaETRU6BhE~IA__&Key-Pair-Id=KUT5TJCACFTXG","Laguna Beach staff delivered an AB 2561 compliance presentation on city workforce vacancies, recruitment and retention strategies as part of the budget workshop.

Aggie Nash, director of human resources and risk management, introduced a report stating the citywide vacancy rate for calendar year 2024 averaged about 8 percent; staff clarified that the figure covered the full calendar year rather than a single point in time. The current year‑to‑date vacancy rate cited at the workshop was about 5 percent.

Staff said vacancy totals reflect internal movements, retirements, resignations and newly budgeted positions. Department‑level examples presented included a Police Employees Association vacancy rate of about 10% for 2024 with a current rate near 4%, and a Fire Association calendar‑year vacancy average of about 8% with a current vacancy rate at 0%.

Why it matters: AB 2561 requires transparency before final budget adoption so the council and public understand staffing status and recruitment obstacles. Staff described active recruitment, training and retention measures and said if citywide vacancy rates rose into a 10–15% range staff would activate targeted acceleration efforts.

Outcome
The report was received and filed; staff did not request further council action at the workshop. Council members praised staff for providing both year‑to‑date and annual figures and asked that staff continue to return updates as part of the budget process.

Ending
No motions or policy changes were made; staff will continue recruitment and retention efforts and provide updates as requested.","Per AB 2561 requirements, Laguna Beach human resources reported a calendar‑year 2024 average vacancy rate of 8% citywide (5% year‑to‑date currently), described recruitment and retention steps, and noted the report was received and filed by the council with no action requested.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6561312,"CIP highlights: Fire Station 4, lifeguard towers, reach‑5 wastewater work and targeted undergrounding plans",710,1959000,2669000,"/Search/View?dp=1&key=3292644-9de360a19b36206e512f1da473afb3e5&start=1959&end=2669","https://assets.pipeline.soar.com/3292644-9de360a19b36206e512f1da473afb3e5/thumbnail_1959000.jpg","/articles/6561312/Laguna-Beach/Orange-County/California/CIP-highlights-Fire-Station-4-lifeguard-towers-reach5-wastewater-work-and-targeted-undergrounding-plans","https://secure.pipeline.soar.com/6561312-ae0e1f42005a92c961a60aeb9c15ab23/orig.mp4?Expires=1775219834&Signature=iQqnm4IPH8GKz8jJnOP0zRQe2HbqudG3KGMbvpBhZGitP90xTs~Cv~VP2QtiKDQHyjVtd8btbBU7m640xuhU~HtrZgklaBSOmCJIvTqzevrxglcCTFMZUcnitothr2Uht-mR4wrEdYjirbmOXrN1qDZrlBjeN~52-5AoFDM6DPIQj276CvxhWd5NoWWGX6p1oEQQlK8Vq1WCC1rcMTgrFn4WxVyR5dWsyDX7g45F9Q--tgkzdArPFfBoPPfGm7o6P8RX4dAnoWM0ymeBFKpZuib0aKW6RMO2iLKPTNBbb9mFBtX7A0Wz2a7lmhaU2MR4mnpzyU-U9ZC-6nlmx~oakA__&Key-Pair-Id=KUT5TJCACFTXG","City engineers and public‑works staff used the budget workshop to present a trimmed seven‑year capital improvement program (CIP) and to highlight year‑one allocations for projects the city is actively working to complete.

Tom Perez, city engineer, said staff shortened the planning horizon from 10 years to seven to improve cost accuracy and to highlight “year‑0” projects that are already underway. Staff said about $67,500,000 is currently allocated across roughly 82 active projects (the city closed others earlier this year). Key year‑one and near‑term projects noted in the presentation include funding for Fire Station 4, Cleo Street and Anita beach access work (with Cleo bid opening scheduled), enclosed lifeguard towers, the LCR Protect & Connect project, and the North Coast Interceptor (NCI) reach‑5 replacement.

Wastewater and reach‑5
Public‑works staff described five wastewater projects slated for the coming year, including major upgrades to lift stations (Top of the World, Bluebird and Victoria 2). Staff said some lift stations are decades old (one cited as 60 years old, another 90 years), and the reach‑5 interceptor segment requires environmental approvals before construction; the city expects some of this work to proceed into the next fiscal year and noted use of iBank loans for capital financing.

Undergrounding and private‑street complications
Staff described mapping five remaining residential areas where undergrounding the utilities could be accomplished at scale and said three of those areas include private streets and easement issues. Staff recommended advancing planning and easement work so the city can present clearer project costs before the council considers financing or votes. Council members expressed support for earlier, more detailed outreach so residents see a clearer project scope and cost estimate before votes on funding.

CIP prioritization criteria
Perez said staff prioritizes immediate safety needs first, then regulatory or mandated projects, then grant‑funded projects with hard deadlines, and finally council priorities. Staff also noted ongoing master plans — wastewater, storm drain and facility condition assessments — will supply data to refine CIP planning.

Ending
No binding votes were taken. Council asked staff to return with more refined project schedules, costs and options for undergrounding districts and to continue to pursue grant and loan resources for major wastewater work.","Staff highlighted a seven‑year, year‑one CIP that focuses on ongoing projects such as Fire Station 4, lifeguard towers, multiple wastewater lift‑station upgrades and a prioritized, shorter CIP horizon meant to improve accuracy; staff also described mapping and early steps for remaining residential undergrounding efforts.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6561316,"Council discusses expanded wildfire mitigation spending and fuel‑modification methods amid one‑time regulatory window",3520,845000,4365000,"/Search/View?dp=1&key=3292644-9de360a19b36206e512f1da473afb3e5&start=845&end=4365","https://assets.pipeline.soar.com/3292644-9de360a19b36206e512f1da473afb3e5/thumbnail_845000.jpg","/articles/6561316/Laguna-Beach/Orange-County/California/Council-discusses-expanded-wildfire-mitigation-spending-and-fuelmodification-methods-amid-onetime-regulatory-window","https://secure.pipeline.soar.com/6561316-1ac6f19eed41bac6116b22c529b5f358/orig.mp4?Expires=1775219834&Signature=NZNuF9K6b68oiNv2tpETVd9AG7jeXRIxUTRIgpBhQrO3Z03C8HrEJyKtDM4CO0vqSTjjIjsbnNjpcWJzTv5TE3v2o5tvFx4xy666Wddm768BG656AprhwVYc11TnhhJ10Lgg19u42d2-nqb8nl51C3dg~D1slA88fIJngPl95hi9Fp88pGJGNspzknsbmL-uotEoaGAXo1xEuv8OGFHqaa2bjMUVdwp-fGMEsP2FnUd9ztYiqMrekUEt0jkrXca6mmd0rlIaBoLvXTWo5cc8nRyjIkr8y2v3hl2hbWqLCcmsy8Sc2oi3DORyRPpKOrQdQ3d3ZTCXnmbrD6IdLUdOQA__&Key-Pair-Id=KUT5TJCACFTXG","Laguna Beach City Council and staff spent a portion of the budget workshop discussing wildfire mitigation funding, the scope of fuel‑modification zones and the methods used to treat vegetation.

Staff said the proposed budget includes an allocation of about $4,000,000 for wildfire mitigation and a separate transfer to a wildfire mitigation and fire safety fund. Fire Chief Nico King briefed the council on efforts to expand fuel‑modification zones (potentially up to 300 feet in some areas) under a limited state regulatory opportunity and warned that the regulatory window may require future compliance steps, including permitting and possible restoration or mitigation obligations that could carry significant future costs.

Why it matters: expanded treatment can reduce wildfire risk but may increase near‑term and ongoing maintenance costs. Staff and the fire chief said some treatment methods (mechanical removal) can unintentionally spread invasive species and may require repeated passes; alternatives that include limited herbicide use can be more effective but are controversial and require careful public and environmental controls.

Council and staff discussion
Chief King and public‑works staff said expanded zones will raise costs roughly in proportion to acreage in the budgeting approach the city uses, and that mechanical treatments have required a third pass in many areas, driving up expenses. Staff indicated they would present multiple treatment bids and options for council consideration — with differing cost and environmental profiles — and said a recently awarded community wildfire assistance grant will help identify high‑priority areas for treatment quickly.

Next steps
Council members asked staff to present a specific funding request that would allow the city to take advantage of the one‑time regulatory opportunity while also identifying the ongoing maintenance costs and permitting obligations that would follow. Several council members and public commenters emphasized prioritizing fire‑safety spending over other “nice‑to‑do” projects.

Ending
No final commitment was made at the workshop; staff will return with bids, a clearer cost estimate for expanded zones and a plan that accounts for long‑term maintenance and any restoration obligations tied to permits or the executive order.","City staff proposed about $4 million toward wildfire mitigation in the draft budget and discussed a potential temporary regulatory window created by a governor's executive order that could allow expanded fuel‑modification work; the fire chief and staff warned that long‑term maintenance and potential restoration requirements could raise costs.",{"_33":112,"_35":36,"_37":38,"_39":113,"_41":114,"_43":115,"_45":115,"_47":116,"_49":117,"_51":118,"_53":119,"_55":56,"_57":58,"_59":120,"_61":62,"_63":64,"_65":121,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6561321,"Council hears concerns over growing transit subsidy as parking fund transfer rises; Aliso Beach parking plan draws public opposition",0,1787000,"/Search/View?dp=1&key=3292644-9de360a19b36206e512f1da473afb3e5&start=1787&end=1787","https://assets.pipeline.soar.com/3292644-9de360a19b36206e512f1da473afb3e5/thumbnail_1787000.jpg","/articles/6561321/Laguna-Beach/Orange-County/California/Council-hears-concerns-over-growing-transit-subsidy-as-parking-fund-transfer-rises-Aliso-Beach-parking-plan-draws-public-opposition","https://secure.pipeline.soar.com/6561321-e5af56b08c7ccc22f0117dda5e36b05a/orig.mp4?Expires=1775219834&Signature=bSyQdAsPb2IJmPuCq1xThibceGiSwxYAssMdmPciLRuzaMB0u2CV~wOLsXHdmxWmrhCfdD~R3uqUQYCeD3HbxH2UupqnyNALaGs3nU-~Sft0HZpSC9gYebqMEQHsWY08eFdzNwwNomRwdFzVqj6nhQ3s~NtpvCw4uhYgwf~7xTwZLDuX-F2F7iQw-BYLvOUhNapE04TveRHZpGp3EE9JD1JPZNhqrJafOEE1PjfgkeIY~URLDXfjXEGolV7ZVWAIyObRATvnpNwm0AOMLvr-Ik5kBkcTI7aictpOFBgWcaKfaxkxNhmxldxqx3IeG6HcATaFJg1-uTXvoUNhUfIqqQ__&Key-Pair-Id=KUT5TJCACFTXG","City staff told Laguna Beach City Council that transit operating costs have risen and that the transit fund is now being supported by a larger transfer from the parking fund than in recent years.

Assistant City Manager Gavin Curran and budget staff presented an operating transit budget of about $9,000,000, roughly 40% of which is paid by federal and state grants and OCTA funding. Staff said the remainder is funded locally, primarily by the parking fund, and that the parking‑to‑transit transfer has increased this year by about $2,000,000 compared with prior years, making the current transfer level difficult to sustain without adjustments.

Why it matters: staff described the current subsidy level as unusually large for Laguna Beach and warned that maintaining the present level of transit service without additional revenue or reduced service elsewhere could require structural budget changes or higher parking rates that may face regulatory limits from the Coastal Commission.

Council and staff discussion
Council members asked whether raising parking rates could fully cover transit costs and whether service reductions in off‑season periods could lower the subsidy. Staff cautioned that the California Coastal Commission evaluates parking and transit as connected visitor‑access amenities, so raising parking rates to substantially cross‑subsidize transit could prompt regulatory scrutiny. Staff said the contract for transit services rose substantially during the current year, citing higher insurance and staffing costs and an expansion of service hours (for example, summer on‑demand expansions) as contributors.

Public comment on Aliso Beach parking proposal
The proposed CIP includes funding for improvements at the Aliso Beach parking lot. John Thomas, speaking for the South Laguna Civic Association, urged the council to adopt a lower‑cost rehabilitation alternative rather than a $2.2 million expansion in the draft budget. Thomas said staff estimates of additional gross revenue did not account for operating costs and the city’s added public‑safety expenditures for day visitors, and he urged the city to pause the project until the financials and resident input are clearer.

Next steps
Council asked staff to return with options on transit service levels tied to the forthcoming contract RFP (planned for early fall), and to analyze parking‑rate adjustments, enforcement and potential new leased lots in South Laguna. Staff also said they will provide a clearer accounting of the parking‑to‑transit transfers and related assumptions before final budget adoption.

Ending
No policy action was taken at the workshop; council members sought follow‑up information on service‑level tradeoffs, grant timing and the financial case for the Aliso Beach proposal before taking any votes.","Staff told the council the transit program now requires an unusually large transfer from the parking fund to cover operating costs; the proposed Aliso Beach parking‑lot expansion in the CIP drew criticism from South Laguna Civic Association and other speakers who questioned the project's net revenue and community impacts.","actionData","errors"]

Article not found

Laguna Beach staff present $161 million proposed budget; council hears warnings on transit subsidy, pension risk

Laguna Beach HR reports 2024 vacancy rates within county norms; current year‑to‑date rate lower

CIP highlights: Fire Station 4, lifeguard towers, reach‑5 wastewater work and targeted undergrounding plans

Council discusses expanded wildfire mitigation spending and fuel‑modification methods amid one‑time regulatory window

Council hears concerns over growing transit subsidy as parking fund transfer rises; Aliso Beach parking plan draws public opposition