Ord. XXXX
ORDINANCE NO. XXXX
AN ORDINANCE OF THE CITY COUNCIL OF LAGUNA
BEACH, CALIFORNIA AMENDING CHAPTER 3.24 OF THE
LAGUNA BEACH MUNICIPAL CODE REGARDING THE
CITY’S FINANCIAL GUIDELINES AND BUDGETING
PROCEDURES, DELETING SECTION 3.01.060 DEALING WITH
A BOND REQUIREMENT FOR THE FINANCE DIRECTOR,
AND FINDING THE ORDINACE IS NOT A PROJECT SUBJECT
TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Laguna Beach, California ("City") is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, the City Council of the City of Laguna Beach has continuously maintained excellent financial controls, which are critical for protection of the public and the City’s financial health; and
WHEREAS, the City is always considering ways to update the City’s financial guidelines, ordinances, and budgeting procedures to be more effective and better reflect the City’s operating procedures; and is advisable to ensure the efficient and effective use of public funds; and WHEREAS, in order to ensure the efficient and effective use of public funds and ensure the City’s actual operations are reflected in its polices and ordinances, periodic review and updates to City ordinances and policies to reflect actual operations and best practices; and WHEREAS, existing provisions in the Laguna Beach Municipal Code require certain formalities that are not necessarily conducive to best financial practices and require outdated preventive measures that are more adequately addressed by existing City insurance and operational measures; and
WHEREAS, in order to ensure the City’s financial processes and formal guidelines and ordinances reflect best practices, the City Council desire to update the Laguna Beach Municipal Attachment 1
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Code to modify the schedule related to the City’s budget preparation and approval and remove the requirement of a bond for the Finance Director as the City’s existing insurance serves the same purpose.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The above recitals are hereby adopted by the City Council and incorporated as set forth in this section.
SECTION 2. Amendment. Chapter 3.24 of the Laguna Beach Municipal Code is hereby amended to read in full as follows (added text in underline, deleted text in strikethrough):
CHAPTER 3.24
FINANCIAL GUIDELINES AND BUDGETING PROCEDURES
§ 3.24.010 Budget preparation and approval.
Each year the city manager shall prepare and submit to the city council a proposed annual operating and capital budget by the first meeting in May 1st for the succeeding fiscal year. The city council shall adopt an annual operating and capital budget by July 1st. Each year, the planning commission shall review the capital improvements in the proposed budget for their consistency with the general plan before the city council adopts the annual capital budget. and shall advise the city council by June 1st as to its recommendations for capital projects. § 3.24.020 Control of appropriations.
All additional appropriations or adjustments of estimated revenues subsequent to formal budget adoption shall be approved by the city council. The city manager shall have the right to approve the transfer of appropriations within a department's budget fund but not for the purpose of increasing the number of authorized city personnel. All transfers of appropriations between departments or regarding capital items or projects shall be approved by the city council. § 3.24.030 General fund reserves.
The city council, through the annual budget process, shall appropriate at least four hundred thousand or ten percent of the general fund budget, whichever is greater, as a reserve for contingencies. A minimum of four-to-one or a unanimous votes of the members present of the city council shall be required to reduce such reserve below the level established pursuant to this section.
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§ 3.24.040 Control of expenditures financial reporting.
The city manager shall be charged with the responsibility for controlling the expenditures for all city departments, the city clerk and the city treasurer in accordance with the approved budget. City council members, municipal commissions, boards, committees, and members thereof must have prior approval by the city council of any expenditure not specifically contained in the city budget.
A report on current year revenues, expenditures and fund balances shall be prepared quarterly monthly by the director of finance administrative services for the city manager and shall be submitted to the city council.
§ 3.24.050 Return of funds.
From time to time, it becomes necessary to refund certain permit fees, taxes, licenses, etc., in the normal course of city business. Upon recommendation from department managers or elected officials, the city manager or designee is authorized to approve such refunds in an amount not to exceed five ten thousand dollars. All refunds over five ten thousand dollars require approval by the city council.
§ 3.24.060 Creation and elimination of funds.
No special fund shall be created or eliminated except upon authorization of the city council.
SECTION 3. Amendment. Section 3.01.060 (Bond for director) of the Laguna Beach Municipal Code is hereby deleted in its entirety to read in full as follows (added text in underline, deleted text in strikethrough):
§ 3.01.060 Reserved. Bond for director.
The director of finance shall furnish a corporate surety bond to be approved as to form by the city attorney and to be approved and accepted by the city council, in such sum as may be from time to time determined by the city council by resolution, which shall be conditioned upon the faithful performance of the duties imposed upon the director of finance as herein prescribed.
SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.
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SECTION 5. CEQA. The requirements of the California Environmental Quality Act ("CEQA") do not apply to the proposed action as it is not a "project" because there is no substantial evidence to show that the proposed action has the potential to result in a direct or reasonably foreseeable indirect physical change to the environment. (State CEQA Guidelines, section 15378(a). Further, this Ordinance does not qualify as a project pursuant to State CEQA Guidelines, section 15378 (b)(4) and (b)(5) as amendment to the City’s Financia Guidelines and Budgeting Procedures and removal of a bond requirement are government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and they are organizational or administrative activities that will not result in direct or indirect physical changes in the environment.
SECTION 6. Certification. The City Clerk shall certify to the adoption of this ordinance and, within 15 days after its adoption, shall cause it to be published in accordance with California Law.
SECTION 7. Records. The documents and materials that constitute the record of proceedings on which this Ordinance has been based are located at City Hall, 505 Forest Avenue, I Laguna Beach, CA 92651. The custodian of the record of proceedings is the City Clerk.
SECTION 8. Effective Date. This Ordinance shall take thirty days after its passage and adoption pursuant to California Government Code section 36937.
ADOPTED this _____ day of ____________, 2026.
Mark Orgill, Mayor
Ann Marie McKay, City Clerk
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APPROVED AS TO FORM:
____________
Megan Garibaldi, City Attorney
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, do hereby certify that the foregoing Ordinance No. XXXX was introduced at a regular meeting of the City Council on _______________, 2026, and was finally adopted at a regular meeting of the City Council of said City held on _______________, 2026, by the following vote:
AYES: COUNCILMEMBER(S):
NOES: COUNCILMEMBER(S):
ABSTAIN: COUNCILMEMBER(S):
ABSENT: COUNCILMEMBER(S):
City Clerk, City of Laguna Beach, CA
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