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Laguna Beach mayor says 2025-26 budget is balanced but prioritizes infrastructure, wildfire mitigation and pension costs
Summary
Mayor Alex Runagi told a radio interviewer the proposed 2025-26 budget is balanced at about $130 million, with reserves intact, and he urged a focus on deferred infrastructure, seismic upgrades for fire stations, sewer investments, wildfire fuel modification and managing CalPERS liabilities.
Mayor Alex Runagi of Laguna Beach said the city is presenting a balanced 2025-26 budget of roughly $130 million in expenditures and is keeping reserve and disaster contingency funds fully funded, but urged greater investment in deferred infrastructure and wildfire mitigation.
Runagi made the remarks during a radio interview on Barrow Game Laguna, saying the city’s revenue stability — “primarily funded by property taxes” — helps, but that rising costs and long-term liabilities require strategic choices. “We have a lot of deferred infrastructure that needs investing in,” Runagi said.
Why it matters: Runagi framed the budget as a tool to address several capital needs that he said are pressing for public safety and basic services. He identified four fire stations the city considers seismically unsound, said the city will build a fire station in South Goonewall, and pointed to additional priorities including sewer system investments, a county-funded library improvement project and wildfire risk reduction measures.
Runagi said Laguna Beach is considering a more conservative, zero‑based approach to budgeting to identify potential savings that could be redirected to capital needs. “If we can find those cost savings, what we can do is invest more of our money into infrastructure,” he said. He also called for continued efforts to improve government efficiency, including renegotiating consultant contracts and exploring technology solutions.
On specific projects and funding, Runagi said the city is examining the sewer enterprise fund for needed upgrades and is reviewing a county contribution of $4,200,000 toward library improvements. He identified wildfire mitigation as a high priority and listed several measures under consideration: expanded fuel‑modification work, testing of AI wildfire detection cameras and utility undergrounding. The mayor referenced a 2025 wildfire mitigation plan and a governor’s executive order that, if a project starts this year, could streamline CEQA review for some fuel‑modification projects.
Runagi also raised long‑term pension costs, noting that the California Public Employees’ Retirement System discount rate can create liabilities for cities. He said the city must be strategic in deploying capital to address unfunded pension liabilities while retaining staff and maintaining services.
Runagi praised City Manager Dave Kiff’s financial leadership and said the administration is working toward a long‑term strategic financial plan to match revenue and expenditures with infrastructure and safety priorities.
The mayor also addressed broader community pressures, noting heavy visitor traffic during warm weather and the challenge that a publicly accessible coast poses for local parking and neighborhood impacts under Coastal Commission rules. He said the city is seeking ways to mitigate visitor impacts in coming summers.
Runagi concluded by returning to wildfire prevention: he said fuel‑modification projects are a council focus and that the city hopes to start targeted projects this year to take advantage of streamlined review under the governor’s order. “We need to make those investments because the question is not if, but when the next wildfire happens,” he said.
No formal actions or votes were recorded in the interview; Runagi described planning priorities and proposals the council and staff intend to pursue.
