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Dana Point closes FY25 with higher‑than‑expected revenues; council approves use of excess reserves for capital projects
Summary
City staff reported unaudited fiscal year 2024‑25 results showing higher transient occupancy tax and investment earnings; council approved staff recommendations to appropriate excess unassigned fund balance for reserves and capital projects and to authorize a hazard mitigation grant match.
City staff reported the fiscal year 2024‑25 fourth quarter results to the Dana Point City Council on Sept. 16 and the council approved the recommended budget adjustments and carryovers for fiscal year 2025‑26.
The staff presentation said unaudited general fund revenues totaled about $53.7 million, roughly $3.7 million above budget. Transient occupancy tax (TOT) revenue was reported at about $17.3 million — $1.4 million over budget and $416,000 above the prior year — with stronger receipts in the first half offset by some softness in the second half tied to a large property’s renovation. Investment income (use of money and property) came in at about $2.7 million, boosted by higher interest rates on pooled investments.
Expenditures were reported at approximately $60.4 million, which included $12.3 million in transfers to other funds. Staff reported the city ended the year with reserves at 100% of policy and an unassigned fund balance of about $11.6 million. After accounting for a policy target equal to 7% of budgeted revenues, staff said an excess unassigned fund balance of about $8.3 million was available. Staff recommended using that excess to restore reserves to policy levels for FY26, transferring $1 million to the facilities improvement fund and approximately $3.3 million to the capital improvement program. The staff report also proposed $222,000 in budget adjustments and $1.2 million in carryovers for incomplete projects.
The report included a recommended resolution to authorize a hazard mitigation grant that requires a 25% local match; the project proposed for the grant is replacement of the emergency generator at city hall, which staff said would expand emergency operations center capacity to the council chambers, server rooms and police services if completed.
Council members commended staff for fiscal restraint and contract management that helped keep expenditures under budget. Council member Federico noted police staffing shortfalls contributed to lower expenditures in that department but said he prefers funding deputies to remain a priority. The council approved the staff recommendations by motion and vote during the meeting.
Staff emphasized these figures were unaudited year‑end results and that final audited amounts would be presented later in the audit process.
