Laguna Niguel Council approves midyear budget shifts to fund Crown Valley, Golden Lantern and La Paz projects

Laguna Niguel City Council on Feb. 18 approved staff-recommended midyear budget adjustments that increase recognized general fund revenue and move $3,747,216 into capital improvement projects to accelerate three street projects.

Finance Director Agarelli presented the midyear review, saying the city closed fiscal 2023–24 with a surplus and stronger-than-budgeted revenues. Staff recommended that the council recognize $1,439,047 in additional general‑fund revenue and transfer $3,747,216 to the capital improvement fund; council approved the recommendation by a 4–0 vote (motion by Council member Winstead, second by Council member Otto).

The midyear package directs the new funds toward three projects: (1) the Crown Valley Parkway westbound widening project (staff recommended $1,300,000 from the general fund as the city’s match for an Orange County Transit Authority grant), (2) Golden Lantern median modifications at Cerny Lane (recommended $600,000), and (3) La Paz Road mobility enhancements and permanent repair (recommended $1,800,000 toward the city’s matching requirement). Agarelli told the council the Crown Valley project’s grant agreement requires the city to spend $3,100,000 by June 30, 2025, and staff recommended shifting the related grant revenue from FY 2025–26 into FY 2024–25 to meet the schedule.

Agarelli also recommended transferring the remaining balance of the vehicle replacement fund (about $400,000 as of June 30, 2024) into the general fund because that fund no longer qualifies as proprietary. Taken together with the audited $2,200,000 surplus for fiscal 2023–24, staff said the city has approximately $58.9 million available to allocate for FY 2024–25 and projects the general fund reserve will increase to about $51.2 million (roughly 97% of operating expenditures).

Public comment on the midyear item focused on the Golden Lantern/Serenity Lane median modifications. Debbie Johnson, a 40‑year resident, described traffic conflicts and a past pedestrian fatality at the unmarked intersection and urged approval: "Please, please, please. We've waited a long time." Robin Frankenfield, a resident and Laguna Heights Community Association member, asked the council to approve the median changes to improve sight distance and reduce collisions, saying the intersection was "so dangerous to make a left." Council members said the midyear allocation brings the project forward and agreed it addresses an urgent local safety concern.

Council discussion briefly reiterated the city’s strong audit and reserve position; Mayor Genaway, Council member Otto and others said the allocations reflect previously stated priorities and the city’s conservative budgeting approach. No changes to operating expenditures were recommended as part of the midyear update.

Next steps: staff will appropriate the funds and proceed with project scheduling and procurement consistent with the staff report and grant terms. The Crown Valley and La Paz projects will proceed with the grant‑matching strategy outlined in the staff presentation.