MINUTES
LAGUNA BEACH CITY COUNCIL STUDY SESSION
March 24, 2026
A Study Session of the City Council of the City of Laguna Beach was called to order on Tuesday, March 24, 2026, at 3:30 p.m., in the City Hall, 505 Forest Avenue, Laguna Beach, California, Mayor Orgill presiding.
ROLL CALL
PRESENT: COUNCILMEMBERS: Kempf, Rounaghi, Whalen, Jones, Orgill PARTICIPATING REMOTELY: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
STUDY SESSION
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1. PRESENTATION ON PROPOSED AMENDMENTS TO CHAPTER 3.24 OF THE LAGUNA BEACH MUNICIPAL CODE (LBMC) REGARDING THE CITY’S FINANCIAL GUIDELINES AND BUDGETING
PROCEDURES AND PROPOSED NEW POLICY ON BUDGET CHANGE REQUESTS Presentation and Discussion: Staff provided a presentation on proposed revisions and updates as part of an ongoing review to update existing regulations, ensure compliance with current practices, and establish written policies consistent with best practices, and responded to Councilmember questions.
Public Testimony: Mary Locatelli expressed support for intra-fund budget transfers at the City Manager level and for updated reserve wording, but did not support eliminating the requirement for City Council approval to create or eliminate funds, particularly for funds funded by restricted revenues. Robin Hall also opposed eliminating City Council oversight over fund creation, citing risks of misallocation and weakened financial controls, and she urged the City to prioritize state-mandated requirements, infrastructure maintenance, and deferral of non-essential expenditures.
The City Council provided the following direction:
- Revise LBMC Chapter 3.24 amendments to: (a) replace the May 1 deadline with “first meeting in May”; (b) remove the specific dollar amount from the General Fund reserve section and retain only the 10% requirement; and (c) update the reserve supermajority language to require a four-fifths (4/5) vote of the full City Council. - Review historical budget transfer data and return to Council with a recommended dollar threshold for City Manager’s transfer authority (targeting a level that covers approximately 80% of historical transfers), to be incorporated into the Budget Change Request Policy.
Attachment 2
10 Laguna Beach City Council Study Session Minutes March 24, 2026 -2-
- Add language to the Budget Change Request Policy specifying that assessment district funds are excluded from the policy’s scope, per the City Treasurer’s request. - Add language to the Budget Change Request Policy requiring that all administrative budget transfers approved under the policy be listed as an attachment to the quarterly financial report.
- Implement a quarterly budget-to-actual variance report beginning with the quarter ending September 30, 2026, and provide a monthly financial data report (unanalyzed) to the City Council for interim visibility.
- Research and return with a resolution to formally memorialize the City’s General Fund reserve policy, including the additional 10% reserve target above the code-required 10% minimum, if directed by the City Council.
- Review the Planning Commission’s CIP advisory role under LBMC Chapter 3.24 and return with a recommendation on whether the provision should be retained, modified, or removed.
Staff will return to the City Council on April 14, 2026, with the First Reading of the Ordinance to amend LBMC Chapter 3.24, and with the proposed City Council Policy for Budget Change Requests, incorporating all direction received at the Study Session.
ADJOURNMENT
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There being no further business, Mayor Orgill at 4:04 p.m., Tuesday, March 24, 2026, adjourned to Closed Session, then to the Regular City Council Meeting at 5:00 p.m. on Tuesday, March 24, 2026, at City Hall, 505 Forest Avenue, Laguna Beach California. ****************
Approved: April 14, 2026
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Mark Orgill, Mayor
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Ann Marie McKay, City Clerk
Note: All components of minutes shall be for the primary purpose of memorializing decisions made by the legislative body. Any minute component that does not serve this primary purpose will be minimized or eliminated; this includes comments made by individual body members and members of the public. Discussions that occurred during the meeting can be viewed in archived video recordings on the city’s website. Public submittals on items received prior to adjournment of the meeting are retained in the administrative record and can be viewed in the city clerk’s repository. 11