Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Reserves topic
No spam. Unsubscribe anytime.
Mission Viejo sets $40.9 million general-fund reserve target (49%) for 2025'27 budget
Summary
Finance staff recommended and the council adopted a general-fund reserve target of $40,900,000 (49% of projected general fund revenues) for the 2025'27 budget cycle; council discussed capital needs and left specific allocations for later budget deliberations.
The Mission Viejo City Council on May 20 adopted a resolution establishing a general-fund reserve target of $40.9 million (49% of projected general-fund revenues of $83.5 million) for the 2025'27 budget cycle.
Finance staff presented a reserve risk analysis that grouped reserve needs into nine categories, with the largest designated reserve ($18.5 million) set aside for revenue-source stability tied to potential impacts on property and sales taxes. The recommended reserves also included amounts for leverage (unfunded liabilities), liquidity, capital-asset replacement and vulnerability to extreme events.
Councilmembers debated whether to increase the portion set aside for capital projects now or hold the figure until the full budget comes forward. Several members said they preferred to retain flexibility: the policy sets a 44% minimum floor and a 49% target, allowing the council to prioritize capital projects in subsequent budget discussions. Council Member Kelly noted the council will reassess after fiscal-year true-up and highlighted maintenance needs at Sierra Recreation Center.
The council voted unanimously to approve the resolution establishing target and minimum reserve levels. Council asked staff to return with more detailed capital project cost estimates — particularly for high-priority maintenance projects — during the budget deliberations.
