RESOLUTION NO. 26.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, ADOPTING CITY COUNCIL
POLICY NO. 4.1, BUDGET CHANGE REQUEST PROCESS, TO
BE ADDED TO THE CITY COUNCIL POLICY AND
PROCEDURES MANUAL, AND FINDING SUCH ACTION
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT UNDER STATE CEQA GUIDELINES SECTION
15378
WHEREAS, the City Council is authorized to adopt rules for the conduct of its meetings, proceedings, business, and administration, in accordance with the Laguna Beach Municipal Code, the Ralph M. Brown Act (Government Code section 54950 et seq.), and all other applicable laws; and
WHEREAS, the City Council has previously adopted a City Council Policy and Procedures Manual (“Policy Manual”) to provide guidance regarding the conduct of City Council meetings, the organization of City Council business, and other administrative practices of the City Council and the City; and
WHEREAS, from time-to-time, the City may adopt additional policies and procedures regarding the organization of the City Council, its business, and other administrative matters; and WHEREAS, the Budget Change Request Process policy is proposed to establish a policy and common procedures to be used by departments to propose modifications to their budget to ensure the effective management of the City’s fiscal operations; and WHEREAS, the City Council desires to incorporate this new policy into the Policy Manual, thereby clarifying existing procedures and ensuring consistency with the City’s Municipal Code.
Attachment 2
9 -2- Reso. #
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:
SECTION 1. The foregoing recitals are true and correct, and incorporated herein by this reference.
SECTION 2. The City Council Policy No. 4.1, Budget Change Request Process, fixed and attached as Exhibit A hereto, is hereby adopted and incorporated into the Policy Manual.
Policy No. 4.1 is hereby directed to be affixed to the Policy Manual.
SECTION 3. The proposed action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to the State CEQA Guidelines, as the action not a “project” and has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment. (14 Cal. Code Regs. § 15378(a).) A “project” specifically does not include continuing administrative or maintenance activities, such as general policy and procedure making. (14 Cal.
Code Regs. § 15378(b)(2).) Alternatively, the proposed actions are exempt from CEQA, as there is no possibility that such action would have a significant negative effect on the environment. (14 Cal. Code Regs. § 15061(b)(3).) Rather, the proposed actions are administrative in nature and merely set forth policies and procedures for the conduct of the City Council’s meetings, proceedings, business, and administration.
SECTION 4. If any action, subsection, sentence, clause, or phrase of this Resolution, including Policy No. 4.1 attached as Exhibit A, or the application thereof to any person or circumstance shall be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this Resolution that can be given effect without the invalid provisions.
SECTION 5. This Resolution shall take effect immediately upon its adoption. 10 -3- Reso. #
ADOPTED this _____ day of _________, 2026.
Mark Orgill, Mayor
ATTEST:
Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on _____________, 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk, City of Laguna Beach, CA
11 -4- Reso. #
EXHIBIT A
City Council Policy and Procedures Manual
Policy No. 4.1
Budget Change Request Process
12 CITY COUNCIL POLICY/PROCEDURE
POLICY 4.1
BUDGET CHANGE REQUEST PROCESS
PURPOSE
The intended purpose of the City of Laguna Beach Budget Change Request Process Policy is to establish a policy and common procedures to be used by departments to propose modifications to their budget to ensure the effective management of the City’s fiscal operations, as authorized by the City Council.
GENERAL POLICY
The City Manager and, when necessary, the City Council, may consider requests for changes in the budget during the fiscal year that have been properly submitted by departments, and which are necessitated by changes in circumstances unforeseen at the time of the original budget approval.
The Department Heads are expected to maintain control of expenditures to properly administer their programs and services. When events that require modification in a budget, the Department Directors should take action to request changes in the budget to reflect the changed situation.
This policy shall now apply to funds involving Assessment Districts because the appropriations amount and the type of funds the transactions are recorded in are outlined in the related debt agreements.
BUDGET CONTROL
1) The base level of budgetary control is at the fund level. This means that total appropriations for each fund may not be exceeded at the fund level without appropriate authorization by the City Council.
2) A transfer of funds from account to account within the same department and fund, excluding personnel accounts, capital items and capital improvement projects, for amounts up to $20,000, only require Department Director approval. 3) All other transfers of funds within the same fund require the approval of the Director of Administrative Services and City Manager.
4) City Council approval is required for a budget change request that increases total appropriations in any fund and any adjustments related to capital items and capital improvement projects.
Exhibit A
13 CITY COUNCIL POLICY/PROCEDURE
POLICY 4.1
PROCEDURES
Budget Adjustments Approved Administratively
A. Prior to making a budget transfer request, department staff are responsible for verifying the account they are requesting for a budget transfer from has sufficient funds available, after considering outstanding encumbrances, to fund the amount of the request.
B. The department requesting a budget transfer should complete the Budget Transfer Request Form. The form should include an explanation with a reason necessitating the request and be signed by the Department Director. The completed form should be submitted to the Finance Division’s Administrative Analyst.
C. The Finance Division’s Administrative Analyst will review the Budget Transfer Request Form to verify the information on the form is complete and accurate.
D. When required, the Finance Division’s Administrative Analyst will forward the Budget Transfer Request Form to the Director of Administrative Services who will review the request and either approve or deny the request. If the request is not approved, the Director of Administrative Services will state their reason(s) and return the form to the initiating department. If the request is approved, then the Director of Administrative Services will sign the form and forward the request to the City Manager for consideration.
E. The City Manager shall review the request and if approved, sign the Budget Transfer Request Form, and return it to the Finance Division’s Administrative Analyst. If the City Manager does not approve the request, they will state their reason(s) and return the form Director of Administrative Services who will then communicate the denial to the initiating department.
F. Upon receipt of the Budget Transfer Request Form with the required approvals, the Finance Division’s Administrative Analyst will enter the budget transfer in the City’s Finance system and send an email to the initiating department to notify them the adjustment has been posted.
G. Budget changes approved administratively will be reported to the City Council quarterly.
Budget Adjustments Approved by City Council
A. The department requesting a budget adjustment should consult with the City Manager regarding their intent to request a budget amendment for City Council approval at a future meeting agenda.
B. If the City Manager approves the request, then the initiating department shall prepare the necessary staff agenda report for the City Council meeting. The staff report should include the full account string(s) where the budget amendments are requested. The 14 CITY COUNCIL POLICY/PROCEDURE
POLICY 4.1
recommendation and financial analysis sections of the staff report shall be reviewed and approved by the Director of Administrative Services .
C. Upon City Council approval, the Finance Division’s Administrative Analyst shall post the budget adjustment in the City’s Finance system and send an email to the initiating department to notify them the adjustment has been posted. 15