Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Laguna Niguel council approves midyear budget changes, allocates $2.8 million surplus
Summary
Finance Director Merrick reported a $2.8 million FY24–25 surplus and recommended allocations to street infrastructure, facility maintenance and reserves and a change to the investment policy. Council approved the staff recommendations and Resolution No. 2026-1521 by a 4–0 vote.
Laguna Niguel’s City Council on Monday approved staff recommendations to allocate a $2.8 million operating surplus from fiscal year 2024–25 and to permit a new class of investments under the city’s investment policy.
Finance Director Merrick reported that the general fund ended FY24–25 with a $2,800,000 surplus and that the council had adopted a balanced FY25–26 budget in June. "The general fund ended the year with a $2,800,000 surplus," Merrick said during the midyear presentation, noting that revenues had come in over budget and operating expenditures were under budget.
Staff recommended allocating the surplus as follows: $1,150,000 to the capital improvement fund for street infrastructure, $500,000 to address maintenance needs at city‑owned facilities, and $1,150,000 to the city’s infrastructure replacement and deferred maintenance reserve. With those allocations, staff projected general fund reserves would increase to $53,400,000 on June 30, 2026, raising the reserve as a percentage of operating expenditures to about 97.8 percent.
As part of the update, staff proposed revising the investment policy to permit municipal securities of U.S. states and local agencies provided the issuer has at least an "A" rating by a nationally recognized statistical rating organization; investments would be limited to 5 percent per issuer and 25 percent of the portfolio. Merrick said these changes are intended to expand the permitted investment pool while preserving credit standards and issuer limits.
Council discussion was overwhelmingly supportive. Council members praised staff for conservative budgeting and fiscal stewardship; Council Member Otto said he supported designating $1,150,000 to street infrastructure and noted the city’s other service successes. Following discussion, the council voted to approve the staff recommendations and the proposed investment policy change; the motion carried 4–0. The approval also included Resolution No. 2026-1521 authorizing the examination of sales or transactions and use tax records.
Mayor Johns closed public comment on the item after the city clerk reported there were no speakers. The council moved on to reports and adjourned at 7:35 p.m.
