San Juan Capistrano council backs 50% reserve target, prioritizes roads and pauses large turf project

San Juan Capistrano city managers presented a proposed FY 2026–27 operating budget on May 19 that projects $45.5 million in operating revenues and $42.3 million in expenditures, leaving a staff-estimated $3.2 million surplus.

City Manager Ben Siegel said the presentation was designed to be cautious and forward-looking: “The city remains in a very strong financial position,” Siegel told the council, and staff recommended maintaining a conservative posture while finishing high-cost capital projects already underway.

Ken Alebaum, the city's chief financial officer, summarized the revenue mix and the spending plan: "Property taxes and sales taxes together account for roughly 72% of general fund revenues," Alebaum said, adding that the city anticipates a 27% increase in permit and development-related receipts tied to projects in the pipeline. He said staff proposes to set the reserve target at 50% of the general fund budget — approximately $21.2 million under the new projections — and to carry $1.66 million of discretionary spendable surplus into the coming year after fully funding that target.

The budget discussion centered on the capital improvement program (CIP). Staff emphasized the multi-year roadway investment program and recommended a $1.0 million contingency to close out phase 2 of arterial street projects (Camino Del Avion and San Juan Creek Road) and an additional $1.0 million for a new slurry-seal maintenance program intended to preserve pavement condition. Ben Siegel said the Linovia Bridge replacement is largely funded through development impact fees and federal grant pursuit, but construction is estimated at $25–30 million and will rely heavily on outside grants.

Council members pressed staff on priorities. Councilmember Hart urged sticking to the 50% reserve goal: "If we get to 50% this year, we just maintain it," Hart said, arguing that partially funding reserves now would increase pressure on future councils. Other members asked staff to consider increasing the arterial contingency and to return with more detailed cost sensitivity for high‑risk road segments.

Parks and non-general-fund projects also drew detailed discussion. Staff recommended pausing the Stonefield synthetic-turf project — a school-district joint-use field whose estimated construction cost grew from about $4 million to $8 million — and reprogramming $1.2 million of park funding so $700,000 could go to immediate Cooks Park restroom and ADA upgrades and $200,000 toward pickleball and basketball court resurfacing. City staff said roughly $300,000 already had been spent on Stonefield design and that design work would be preserved if the project is paused.

Several councilmembers and members of the public urged a structured sports-field maintenance plan. Staff reported a BrightView estimate of $250,000–$300,000 to renovate the Marco Forrester fields and proposed developing a maintenance program, modeled on the road-preservation approach, to present back to council.

Council direction and next steps Staff asked for policy direction and received broad council consensus on several points: unencumber Stonefield funding and return the dollars to the parks fund, fully fund the 50% reserve target, fund the recommended non-general-fund projects (EV chargers, Cooks Park restrooms, bike racks, pickleball/basketball resurfacing), and set aside $1.0 million for arterial street contingency with a requirement to return with a close-out and funding-status update after the major road projects complete. Councilmembers requested more granular backup on the arterial contingency estimate before final adoption.

By unanimous voice the council directed staff to return with a formal budget resolution for consideration and adoption at the June 16, 2026 meeting.