Rancho Santa Margarita adopts $2025–26 operating budget, $13M CIP and related resolutions

The Rancho Santa Margarita City Council unanimously adopted the fiscal year 2025–26 operating budget and a seven-year capital improvement program on June 11, approving staff recommendations that include a modest structural surplus and funding for about 20 CIP projects.

City staff presented the proposed plan, saying the general fund shows a projected structural surplus of $190,843 for the year and that revenues are expected to rise about 2.35%, driven primarily by property tax and investment earnings. The presentation said sales-tax growth is expected to remain modest while property tax estimates grew by roughly 4–5 percent.

The council’s packet and staff presentation also broke down spending: the city’s law-enforcement contract totals $12,486,000 with a general-fund cost of $12,326,000; staff told the council the police-services budget increased about 6 percent and the contract rose roughly $632,943 (about 5.34 percent). The staff presentation said the proposed CIP includes roughly 20 projects totaling a little over $13,000,000, funded from a mix of sources including revised CDBG funds and general-fund appropriations. The staff-run reserve model reported audited FY23–24 reserves at $38,600,000 and estimated a FY25–26 ending general fund balance in the low-$30 millions range while continuing planned CIP spending.

Mayor Beal told residents, “I assure you that public safety is the city's number 1 priority,” emphasizing the council’s long-standing allocation of resources to law enforcement and public-safety partnerships. Councilmembers thanked finance and departmental staff for months of preparation and detailed review; several members noted prior budget workshops had covered most line items and said that informed their votes.

Council adopted a package of resolutions on the consent of the motion — including the operating budget, the CIP plan, a resolution establishing the appropriations limit for FY25–26 and a community-support resolution for the RSM Chamber of Commerce — with a unanimous vote. Staff said projects identified for next year include arterial and collector street work, bridge repairs and landscape/monument work at Antonio Parkway, with construction timelines and contract awards to follow on several items.

What’s next: staff will proceed with contract awards, project bid processes and implementation steps identified in the CIP. The council set no additional public hearing dates on the adopted budget; routine project updates will come through staff reports and future council meetings.