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

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…