Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Mission Viejo council adopts mid-cycle budget adjustments, approves reallocation of $4M from core-area funding
Summary
Council approved mid-cycle revisions to the FY 2026–27 operating and capital budgets after staff described about $3.3M in downward tax revenue adjustments; the council voted 3–1 to adopt staff's recommendations, including a proposed $4.0M reallocation from the paused core-area vision fund to a surface parking expansion and a $5.0M transfer to the city's Section 115 pension trust.
City staff presented mid-cycle revisions to the FY 2026–27 budget on May 26 and said the General Fund operating budget presented for approval was balanced after proposed adjustments.
"The amended fiscal year 'twenty 6, 'twenty 7 General Fund operating budget for approval this evening is balanced," the finance presenter told the council, citing a combined downward tax-revenue adjustment of about $3.3 million driven by a $1.8 million property-tax/VLF correction and a $1.7 million sales-tax reduction. Staff identified partially offsetting increases in permit, fees and other revenues.
The amendments included capital realignments and several project-specific changes: an approximately $619,000 increase for the Trabuco Wetlands rehabilitation project, $150,000 for the Marguerite Parkway safety project, a $30,000 increase to a traffic-signal synchronization project and deferrals to certain park amenity replacements and playground surfacing. Staff also proposed transferring $5.0 million of assigned reserves into the city's Section 115 pension trust to diversify investments and pursue higher long-term returns.
Council discussion centered on whether to draw on bond proceeds previously reserved for the downtown core-area vision plan. Staff said bond counsel reviewed documents and concluded the remaining proceeds could be used for capital projects that provide public benefit; the plan is paused under the Surplus Land Act process and staff recommended releasing roughly $4.0 million of bond proceeds back to the general fund as one-time resources for the surface parking expansion project.
Councilmember Trish Kelly moved to adopt the recommended budget adjustments and transfers; the motion passed 3–1 with Councilmember Vasquez voting no and Mayor Pro Tem Goodell absent.
Ending: Staff will return with any required resolutions to formalize the bond-usage change and will provide follow-up information requested by several council members (traffic studies, economic assumptions, and detailed subsidy figures for recreation facilities).
