Laguna Niguel council adopts biennial 2025–27 budget, approves CIP and fee updates

The Laguna Niguel City Council on Monday adopted a biennial operating and capital improvement budget for fiscal years 2025–27 and approved multiple related resolutions, funding authorizations and policy updates.

The council voted 5-0 to adopt the two-year budget, approve updates to the master fee schedule for Public Works and the Crown Valley Community Center, adopt salary-range amendments, and authorize specified uses of infrastructure reserves for two roadway projects. The motion to adopt the staff recommendation was made by Mayor Ray Genoway and seconded by Council Member Otto; the vote was unanimous.

The adopted budget sets combined operating and capital improvement totals of $80,800,000 for fiscal year 2025–26 and $82,500,000 for fiscal year 2026–27, and moves the city from an annual to a biennial budget cycle. Finance Director Agriilius told council the general fund is operationally balanced in both years, with projected general fund revenues of $56,500,000 and expenditures of $54,600,000 in 2025–26 (a $1,900,000 operating surplus) and projected revenues of $58,200,000 and expenditures of $56,000,000 in 2026–27 (a $2,200,000 operating surplus).

Nut graf: Council members said the two-year budget preserves services and directs surplus funds to capital projects and reserves while avoiding new taxes or debt. The package funds a multi-year capital improvement program (CIP) focused on roadway repairs, approves fee and salary updates, and authorizes reserve draws for two major road projects while adding a council-directed study of additional weed-abatement options on city-owned property.

Key decisions and funding details. Staff recommended transferring $2,700,000 from the general fund to the CIP fund and depositing $381,601 (FY25–26) and $1,007,421 (FY26–27) into infrastructure reserves. Council authorized using $1,400,000 from the infrastructure replacement and deferred maintenance reserve in FY25–26 for the Crown Valley Parkway westbound widening project and $1,200,000 in FY26–27 for the La Paz Road mobility enhancement and permanent repair project. The five-year CIP total is presented at $75,600,000, with staff reporting that about 88% of that five-year plan is for streets and transportation projects and that approximately 38% of CIP funding is expected to come from grants.

Council discussion and follow-up direction. Council members praised the conservative revenue assumptions and the focus on roads and public-safety projects. Council Member Jennings said, “I am so very proud of this document,” and others echoed support for the two-year approach as a way to reduce staff workload and enable longer-term planning. Following public comment about brush and fuel-reduction needs in the Salt Creek corridor, the council directed staff to add a study of additional weed-abatement and brush-management options on city-owned property to the work plan, funded from contingency and subject to a forthcoming RFP. City Manager Tammy Letourneau said the study would require consultant work and estimated roughly $75,000, which would exceed her signature authority and thus requires council direction to reallocate contingency funds for the RFP and contract work.

Major CIP and program highlights discussed by Public Works Director Jackie Scott included: the residential annual resurfacing (slurry seal) program (4.2 million square feet of improvements to 114 residential streets), planned construction in Residential Zone 7 in spring/summer 2027, update and design for Alicia Parkway (Highlands to Crown Valley) with construction anticipated in FY26–27, a proposed Crown Valley Parkway westbound widening that adds a fourth westbound lane from the I-5 southbound off-ramp to Cabot Road, and a La Paz Road permanent repair project currently in environmental and design phases supported by a $15,500,000 LTCAP grant. The two-year CIP list for FY25–27 presented by staff totals roughly $49,500,000 for the two-year span and includes parks, street, transportation and facility projects.

Other budget elements. Staff described three proposed reclassifications and inclusion of a new assistant-to-the-city-manager classification; no change to the total number of full-time positions (66). Effective Jan. 1, 2025, the city is complying with AB 2561 requirements to report vacancy information; as of May 2, 2025 staff reported five full-time vacancies citywide. Staff said the budget incorporates fee-study recommendations for Public Works and Crown Valley Community Center/facility fees and that no fee increases were assumed for FY26–27 as a conservative measure.

Public comment and compliance with state-designated fire hazard zones. Resident Mary Jane Foley urged further action in the Salt Creek corridor, saying parts of the corridor had not received adequate fuel-modification and that some privately insured property owners are losing coverage. Council and staff discussed enforcement of OCFA standards and code-enforcement practices; City Manager Letourneau and staff said they would re-check the corridor and follow up. After discussion, council asked staff to study whether the city can safely increase fuel reduction efforts on city-owned property and to return with recommendations.

Votes at a glance. The council recorded the following formal actions as part of the motion that passed 5-0: - Adopted Resolution 2025-1500 (as listed in the staff report) approving the city's Fiscal Years 2025–2027 operating and capital improvement budget — Passed 5-0. - Adopted Resolution 2025-1501 amending portions of Resolution 2023-1434 to add salary ranges for a new assistant to the city manager classification and an existing community engagement manager classification — Passed 5-0. - Adopted Salary Resolution 2025-1502 updating salary ranges for designated classifications included in the OCEA maintenance, clerical and technical unit and the management/professional/supervisory unit — Passed 5-0. - Held public hearing and adopted Resolution 2025-1503 approving and adopting the master fee schedule for services and charges — Passed 5-0. - Adopted Resolution 2025-1504 establishing the GANN limit for Laguna Niguel for FY25–26 and FY26–27 — Passed 5-0. - Authorized designation of $381,601 (FY25–26) and $1,007,421 (FY26–27) of operating surpluses to the infrastructure replacement and deferred maintenance reserve — Approved 5-0. - Authorized $1,400,000 from the infrastructure replacement and deferred maintenance reserve for FY25–26 to be used on the Crown Valley Parkway widening project — Approved 5-0. - Authorized $1,200,000 from the infrastructure replacement and deferred maintenance reserve for FY26–27 to be used on the La Paz Road mobility enhancement and repair project — Approved 5-0. - Added to the work plan and funded from contingency a study of additional weed-abatement/brush-management options on city-owned property; staff to issue an RFP and return with recommendations — Approved 5-0.

What happens next. Staff said the draft CIP and implementation steps (design, grant applications, RFPs) will continue to move forward; some projects require federal or regional grants and interagency coordination (Caltrans, OCTA, Transportation Corridor Agencies, and neighboring cities). The city will submit the budget document to the Government Finance Officers Association for consideration of the Distinguished Budget Presentation Award.

Ending: Council members and staff thanked employees and volunteers for the budget process and emphasized the emphasis on preserving services, maintaining reserves, and prioritizing road repairs and public-safety related capital projects.