Council adopts midyear budget adjustments; multiple consent items pass unanimously
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Summary
The Lake Forest City Council adopted midyear budget amendments that incorporate updated revenue estimates and other-fund appropriations, including the previously approved $4.35 million affordable housing loan; the actions passed by unanimous vote.
The Lake Forest City Council received the fiscal year 2024–25 midyear budget review and adopted a resolution to amend the budget to reflect updated revenue and appropriation estimates.
Kevin Shireh, the city—s director of finance, presented the midyear report. He recommended modest changes: general fund revenue increases of about $236,000, other-fund revenue decreases totaling about $1.6 million and cost estimate increases in other funds of about $4.3 million. Shireh told the council these adjustments reflect actuals through February and projections to June.
Key changes highlighted by finance staff included a proposed $1.2 million reduction to sales and use tax estimates, a $435,000 decrease in building and safety revenue tied to slower development activity, and an increase in investment income of about $1.45 million driven by higher returns. Property tax revenue was projected to rise slightly to about $26.6 million. Staff said the general fund estimate would increase from $66.4 million to $66.7 million, with expenditures at about $66.0 million, and that the city remains financially stable with fully funded reserves.
Shireh and the city manager said the midyear adjustments also reflect recommended appropriations in other funds, including the $4,350,000 loan to National Community Renaissance for the Aspen Court affordable housing project previously discussed on the agenda. The council received public comment critical of spending from Andrew O—Connor (Foothill Ranch), who questioned certain invoices and urged personnel cost reductions.
The council moved and seconded the staff recommendations and adopted the midyear report and resolution to amend the 2024–25 budget by unanimous voice vote (Council Member Yoo — aye; Council Member Serbo — aye; Council Member Tetimer — aye; Mayor Pro Tem — aye; Mayor — aye). The record shows the council also approved the consent calendar (items 3–9), minutes for the March 4, 2025 regular meeting, certification of the warrant register and a ceremonial recognition of 2024 commission chairs by unanimous votes earlier in the meeting.
Votes at a glance - Item: Resolution adopting midyear budget amendments for FY 2024–25 — Outcome: approved unanimously; key effect: general fund revenue estimate to $66,700,000, other-fund appropriations increased by approximately $4,300,000 (includes $4.35M housing loan). - Consent Calendar (Items 3–9, including Housing Authority item): approved unanimously. - Item: Minutes of regular meeting (03/04/2025): approved unanimously. - Item: Certification of warrant register (Item 5): approved unanimously. - Item: Recognition of 2024 commission chairs (Item 2): approved unanimously.
Why it matters: the midyear amendments incorporate updated revenue forecasts and other-fund appropriations needed to implement the Aspen Court loan and align special grant and capital fund activity with current-year operations. Staff said the city remains in sound financial condition after the recommended adjustments.