Laguna Beach City Council
June 9, 2026

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CITY OF LAGUNA BEACH
CITY COUNCIL AGENDA
JUNE 9, 2026
COUNCIL CHAMBERS – 505 FOREST AVENUE, LAGUNA BEACH, CA 92651 STUDY SESSION
MARK ORGILL, Mayor
HALLIE JONES, Mayor Pro Tem
SUE KEMPF, Councilmember
BOB WHALEN, Councilmember
ALEX ROUNAGHI, Councilmember
DAVE KIFF, City Manager
MEGAN GARIBALDI, City Attorney
LAURA PARISI, City Treasurer
ANN MARIE McKAY, City Clerk
LEVINE ACT DISCLOSURE: You may submit comments in person on any agenda item or any item not on the agenda. You may also submit written comments on any agenda item or on any item not on the agenda via mail to the City Clerk at 505 Forest Avenue, Laguna Beach, CA. 92651 or by email to [email protected]. In order to allow sufficient time for members of the City Council and staff to review and consider your written comments, written comments will be accepted for consideration up until the close of business (i.e., 5:30 p.m.) on the business day before the date on which this public meeting is scheduled. Written comments WILL NOT be read aloud during the City Council Meeting. Please note that written comments are posted on the City’s website, so do not include any personal information you do not want posted on the web. Any comments received after the deadline for submittal may not become part of the public record for that meeting. For comments submitted on a topic not on the agenda, please indicate that you would like your comments included in the official record for this meeting.

Public Participation: You may submit comments in person on any agenda item or any item not on the agenda. You may also submit written comments on any agenda item or on any item not on the agenda via mail to the City Clerk at 505 Forest Avenue, Laguna Beach, CA. 92651 or by email to [email protected]. In order to allow sufficient time for members of the City Council and staff to review and consider your written comments, written comments will be accepted for consideration up until the close of business (i.e., 5:30 p.m.) on the business day before the date on which this public meeting is hdldWiWILLNOTbdlddihCiCilMiPlttht
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indicate that you would like your comments included in the official record for this meeting.

Public Participation: You may submit comments in person on any agenda item or any item not on the agenda. You may also submit written comments on any agenda item or on any item not on the agenda via mail to the City Clerk at 505 Forest Avenue, Laguna Beach, CA. 92651 or by email to [email protected]. In order to allow sufficient time for members of the City Council and staff to review and consider your written comments, written comments will be accepted for consideration up until the close of business (i.e., 5:30 p.m.) on the business day before the date on which this public meeting is scheduled. Written comments WILL NOT be read aloud during the City Council Meeting. Please note that written comments are posted on the City’s website, so do not include any personal information you do not want posted on the web. Any comments received after the deadline for submittal may not become part of the public record for that meeting. For comments submitted on a topic not on the agenda, please indicate that you would like your comments included in the official record for this meeting.

Courtesy Virtual Broadcast:  Please take notice that the City also plans to broadcast the meeting via the below listed mediums. These virtual broadcast mediums are also provided as a courtesy only and are not guaranteed to be technically feasible or uninterrupted. Thus, in order to guarantee live­time viewing, members of the public are encouraged to attend in person.

1.    Online on the City of Laguna website: www.lagunabeachcity.net/meetings

2.    Cox cable channel 852

3.    Online on YouTube:  https://www.youtube.com/channel/UCQsj8cEM7IvTH6p4uf3NUzQ STUDY SESSION
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A. ROLL CALL ­ 3:00 p.m.

B. INTERVIEWS AND APPOINTMENTS.

1. INTERVIEWS AND APPOINTMENTS TO THE PLANNING COMMISSION Recommendations:

1.  Re­appoint the three incumbents to the Planning Commission for two­year terms, beginning July 1, 2026, through June 30, 2028.

2. INTERVIEWS AND APPOINTMENTS TO THE EMERGENCY/DISASTER PREPAREDNESS COMMITTEE (EDPC)
Recommendations: Appoint the three applicants to the Emergency/Disaster Preparedness Committee for two­year terms, beginning July 1, 2026, through June 30, 2028.

3. INTERVIEWS AND APPOINTMENTS TO THE HOUSING & HUMAN SERVICES

COMMITTEE
Recommendations:

1.  Re­appoint the two incumbents to the Housing and Human Services Committee for two­year terms, beginning July 1, 2026, through June 30, 2028; and

2.  Direct the City Clerk to enact a rolling application deadline until enough applications are received to fill all vacant positions and return at a future City Council meeting for the remaining appointments.

4. INTERVIEWS AND APPOINTMENTS TO THE ARTS COMMISSION
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Recommendations:

1.  Re­appoint the two incumbents to the Housing and Human Services Committee for two­year terms, beginning July 1, 2026, through June 30, 2028; and

2.  Direct the City Clerk to enact a rolling application deadline until enough applications are received to fill all vacant positions and return at a future City Council meeting for the remaining appointments.

4. INTERVIEWS AND APPOINTMENTS TO THE ARTS COMMISSION
Recommendations: Interview the six applicants and appoint five residents (one as an alternate) to the Arts Commission for two­year terms, beginning July 1, 2026, through June 30, 2028.

C. REVENUE BALLOT MEASURE DISCUSSION.

5. 2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
Recommendations:

1.  Receive a presentation on the results of the 2026 community survey from Probolsky Research;

2.  Receive an update on the community outreach efforts conducted from February through May 2026, including four Community Town Hall meetings;

3.  Discuss the three potential revenue measures evaluated in the survey: (1) a Transient Occupancy Tax increase, (2) a Sales Tax increase, and (3) a Business License Tax measure for bars and restaurants;

4.  Provide direction to staff regarding whether to return to the City Council on June 23, 2026 with an agenda item to consider placing one or more revenue measures on the November 3, 2026, General Municipal Election ballot; and

5.  If direction is given to bring any measure(s) forward, continue the Council Survey Ad Hoc Committee to work with staff and consultants on public education and outreach, assist in drafting final ballot measure language, and assist in preparing any resolutions and ordinances necessary to place the measure(s) on the November 3, 2026, ballot.

D. ADJOURNMENT.  The Laguna Beach City Council will adjourn to its 5:00 p.m. regular meeting.

ADA ACCOMMODATIONS
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Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability­related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (949) 497­0705 (telephone) or (949) 497­0771 (facsimile). Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting.

COMPLIANCE WITH GOVERNMENT CODE SECTION 54957.5
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Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packets are available for public inspection in the City Clerk's Office at 505 Forest Avenue, Laguna Beach, Californiaduringnormalbusinesshours
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arrangements to assure accessibility to the meeting.

COMPLIANCE WITH GOVERNMENT CODE SECTION 54957.5
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Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packets are available for public inspection in the City Clerk's Office at 505 Forest Avenue, Laguna Beach, California, during normal business hours.  4 of 110

STAFF REPORT
Meeting Date:

June 9, 2026

INTERVIEWS
1 SUBJECT: INTERVIEWS AND APPOINTMENTS TO THE PLANNING COMMISSION RECOMMENDATION: It is recommended that the City Council:

1. Re-appoint the three incumbents to the Planning Commission for two-year terms, beginning July 1, 2026, through June 30, 2028.

SUMMARY OF THE MATTER
The Planning Commission is a five-member body appointed by the City Council for the purpose of reviewing and advising the Council on items related to the development and modification of land uses within the City limits. As such, the Commission reviews and recommends action on the development and amendment of the general plan, zoning ordinances, subdivision regulations and special projects related to land use planning. The regular meetings of the Commission are held on the first and third Wednesdays of each month at 6:00 p.m.

DISCUSSION
On June 30, 2026, the terms of three members of the Planning Commission will expire: Jorg Dubin, Steven Kellenberg, and Susan McLintock Whitin. For the three openings, four applications were received before the deadline; however, one person withdrew their application, resulting in three applications for the three openings:
(1) Jorg Dubin (incumbent)
(2) Steven Kellenberg (incumbent)
(3) Susan McLintock Whitin (incumbent)

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

ATTACHMENTS

1. Applications (Pgs. 2-17)
Submitted By: Ann Marie McKay Approved: .David A Kiff
Ann Marie McKay, City Clerk Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Ann Marie McKay, City Clerk Samantha Beier, Planning Manager 1 of 17
Attachment 1
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STAFF REPORT
Meeting Date:

June 9, 2026

INTERVIEWS
2 SUBJECT: INTERVIEWS AND APPOINTMENTS TO THE EMERGENCY/DISASTER

PREPAREDNESS COMMITTEE (EDPC)
RECOMMENDATION: It is recommended that the City Council:

1. Appoint the three applicants to the Emergency/Disaster Preparedness Committee for two-year terms, beginning July 1, 2026, through June 30, 2028.

SUMMARY OF THE MATTER
The Emergency/Disaster Preparedness Committee is a seven-member body whose charge is to advise the City Council on all matters pertaining to disaster prevention, planning, mitigation and preparedness, by making recommendations to the City Council. Meetings are generally held on the first Monday of the month at 6:00 p.m.

DISCUSSION
On June 30, 2026, the terms of three members of the EDPC will expire: Shelly Bennecke, Bill Dodge, and Jenn Sarnsen. For the three openings, three applications were received before the deadline:
(1) Shelly Bennecke (incumbent)
(2) Bill Dodge (incumbent)
(3) Drake Smith

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

ATTACHMENTS

1. Applications (Pgs. 2-4)
Submitted By: Ann Marie McKay Approved: .David A Kiff
Ann Marie McKay, City Clerk Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Ann Marie McKay, City Clerk
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STAFF REPORT
Meeting Date:

June 9, 2026

INTERVIEWS
3 SUBJECT: INTERVIEWS AND APPOINTMENTS TO THE HOUSING & HUMAN SERVICES

COMMITTEE
RECOMMENDATION: It is recommended that the City Council:

1. Re-appoint the two incumbents to the Housing and Human Services Committee for two-year terms, beginning July 1, 2026, through June 30, 2028; and

2. Direct the City Clerk to enact a rolling application deadline until enough applications are received to fill all vacant positions and return at a future City Council meeting for the remaining appointments.

SUMMARY OF THE MATTER
The Housing and Human Services Committee is a seven-member body, whose charge is affordable housing, seniors, youths, and the homeless, including affordable housing for city employees and artists and educating the community on existing services such as homeless cold weather shelters. Meetings are generally held on the fourth Wednesday of the month at 6:00 p.m.

DISCUSSION
On June 30, 2026, the terms of four members of the Housing and Human Services Committee will expire: Mary Jo Winefordner, Diane Harrison, Joe Hanauer, and Adam Redding-Kaufman. For the four openings, two applications were received before the deadline:
(1) Diane Harrison (incumbent)
(2) Adam Redding-Kaufman (incumbent)

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

ATTACHMENTS

1. Applications (Pgs. 2-6)
Submitted By: Ann Marie McKay Approved: .David A Kiff
Ann Marie McKay, City Clerk Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Ann Marie McKay, City Clerk
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Attachment 1
2 DIANE HARRISON,
LCSW
Orange County, California

PROFESSIONAL

SUMMARY
Over fifteen years of experience in social work and psychotherapy. Works effectively with children, adolescents, adults, and families. Committed to helping people increase their emotional wellbeing and implement positive change in their lives and communities.

SKILLS • Trained in a variety of therapeutic approaches • Vast experience working with multidisciplinary teams and community partners • Proven ability to work with diverse populations
• Strong supervisory experience managing staff and budgets • Excellent interpersonal and communication skills
WORK HISTORY Therapist • Fusion Care Group
Group private practice providing therapy to children, adolescents, and adults.

Laguna Hills, CA • May 2024 to present
 Provide telehealth and in-person therapy to clients
Clinical Supervisor • Western Youth Services
A community-based clinic providing mental health services for youth and families.

Mission Viejo, California • March 2020 to February 2024  Supervised clinical staff (group and individual supervision) in the delivery of assessment, diagnosis, treatment, and crisis intervention to clients  Ensured compliance with standards of the Board of Behavioral Sciences  Reviewed clinical notes of therapists to ensure effective treatment  Provided therapy to a small caseload of children and families Lecturer • California State University, Fullerton (CSUF), Department of Social Work Fullerton, California • August 2018 to May 2022
Courses taught:
 Social Work Field Instruction I and II
 Advanced Social Work Field Instruction I and II
Clinical Supervisor • CSUF Center for Healthy Neighborhoods A community agency providing services to alleviate education and health disparities.

Fullerton, California • August 2017 to May 2022
 Directed all aspects of the Center's School-Based Mental Health Program (2017- 2020) and Center’s MSW Case Management Services (2020-2022)  Trained Master of Social Work (MSW) Interns on clinical assessment, treatment planning and intervention techniques for counseling placements in the Fullerton School District (2017-2020)
 Developed case management procedures for Center staff to link clients to resources 3 3 of 27
Harrison, page 2
Director of Housing and Homeless Prevention • South County Outreach A nonprofit agency focusing on hunger and homelessness prevention.

Irvine, California • October 2015 to June 2017
 Responsible for the overall operation of Transitional Housing Program (THP) for homeless families
 Supervised THP staff (full-time and contractual staff, volunteers, MSW Intern)  Fiduciary responsibility for $250K annual funding for THP program operations  Oversaw applications, assessments, intakes, and exit processes for THP families  Provided weekly case management for families
 Represented agency in the community and nurtured collaborative relationships with outside providers
Therapist • Western Youth Services
Mission Viejo, California • March 2014 to October 2015
 Responsible for delivery of clinical assessment, diagnosis, treatment, case management, and crisis intervention to clients (children and adults)  Managed a caseload of approximately 25 weekly clients  Provided effective individual, family, and group therapy  Facilitated parent support groups

School Counselor • Western Youth Services (JumpStart for Kids Program) Anaheim, CA • October 2011 to February 2014
 Provided mental health treatment for students (individual and group therapy)  Linked families to community referrals for needed services  Designed activities and presentations to promote positive mental health outcomes .

ADDITIONAL

EXPERIENCE
Grant Writer • Blais & Associates
Rancho Santa Margarita, California • 2009- 2013
Lead grant writer and/or segment writer for grant applications securing $1.5 million in funding for clients. Researched grant opportunities for clients’ proposals.

Freelance Writer/Producer • 1995 – 2010
Writer for television scripts, annual reports, marketing material, web copy, and educational projects. Producer for educational television and documentaries, supervising all staff and production activities and managing budgets.

EDUCATION Master of Social Work • California State University, Fullerton Community Mental Health
B.A • Notre Dame of Maryland University
Double Major: English & Communication Arts
LCSW Registration Number: 74458
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Adam E. Redding-Kaufman

EDUCATION
University of California, Santa Cruz Santa Cruz, CA
Masters of Science in Applied Economics and Finance June, 2019 - Developed expertise with R, Python, Stata, & Excel.
- Calculated complex economic and statistical/econometric models. - Devoted to visualizing data & complex concepts in intuitive and understandable formats California State Polytechnic University, San Luis Obispo San Luis Obispo, CA Major of Quantitative Economics June, 2016
- Law Minor, and Concentration in Entrepreneurship
- Upperclassmen GPA: 3.21 - Major Specific GPA: 3.09 - Total GPA: 3.083 - Special Events Chair of Poly Reps (College Tour Guides) in 2016 and President of Surf Team 2013-2016.

WORK EXPERIENCE
Fisher Phillips Irvine, CA
Senior Data Analyst/Team Lead March, 2023 - Present
- Estimated damages for mediation in more than 425 wage & hour cases or PAGA Audits. - Consulted directly with firm clients regarding formulas required to pay employees correctly in California. - Assisted in scaling the FP DAT team from 3 analysts to 15 over a two-year period. - Developed Excel VBA & Python code to automate data extraction, quality assurance & analysis. - Performed linear regression analysis in R to audit employee demographic data and flag discrimination.

Berger Consulting Group Los Angeles, CA
Data Analyst October, 2019 - March, 2023
- Balanced a heavy caseload analyzing data for more than 600 unique cases in three years. - Perform data cleaning & analysis for wage and hour claims, PAGA claims, employee misclassification, discrimination issues, damage models, and other abstract and unique data questions from clients. - Developed a thorough understanding of Optical Character Recognition software and how to maximize conversion efficiency in Adobe and ABBYY. I lead the OCR training for new employees. - Formulated, scripted, automated, & created databases through VBA and template building to work faster.

Baltodano & Baltodano LLP/The Baltodano Firm, APC San Luis Obispo, CA Litigation Assistant/Executive Assistant June, 2016 - June, 2018 - Conducted damage model exposure analysis on meal & rest breaks, regular rate, time to pay match, and PAGA labor code violations.
- Provided litigation assistance to attorneys representing thousands of class action and single plaintiff clients alleging wage theft, discrimination, harassment, and wrongful termination. - Communicated with and interviewed class members in support of litigation. - Maintained office organization, developed firm policies, prepared legal documents for filing. - Negotiated contracts and implemented policies related to firm transition from LLP to APC.

COMMUNITY INVOLVEMENT RECENT AWARDS
Laguna Beach Housing & Human Services, Vice Chair 2023 Surfer of Distinction, Orange County First Term: Appointed with votes from 4 of 5 City Councilmembers. State Senator Janet Nguyen Second Term: City Council voted 5 of 5. Appointed to Vice Chair.

Competitive Surfer (20-29, 30-39), Laguna Beach Boardriders Only three surfers per town, per age group.
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STAFF REPORT
Meeting Date:

June 9, 2026

INTERVIEWS
4 SUBJECT: INTERVIEWS AND APPOINTMENTS TO THE ARTS COMMISSION RECOMMENDATION: It is recommended that the City Council:

1. Interview the six applicants and appoint five residents (one as an alternate) to the Arts Commission for two-year terms, beginning July 1, 2026, through June 30, 2028.

SUMMARY OF THE MATTER
The Arts Commission is a seven-member commission with one alternate, appointed by the City Council.

Four of the seven members must be actively participating in the arts. The Arts Commission has the power and duty to act in an advisory capacity to the City Council in all matters pertaining to the artistic aspects of the City. Additionally, commissioners recommend to the City Council the adoption of such ordinances, rules and regulations as they may deem necessary for the administration and preservation of the fine/performing arts of the community. Major projects of the Arts Commission are the implementation of the City’s Cultural Arts Plan and the establishment of the Public Art Ordinance and Policy. Arts Commission meetings are generally held on the second and fourth Mondays of each month at 5:00 p.m.

DISCUSSION
On June 30, 2026, the terms of five members of the Arts Commission will expire: Michael Ervin, Pat Kollenda, Adam Schwerner, Sindi Schwartz, and Carl Smith. For the five openings, six applications were received before the deadline:
(1) Rosalie Marsh-Boinus
(2) Michael Ervin (incumbent)
(3) Pat Kollenda (incumbent)
(4) Adam Schwerner (incumbent)
(5) Sindi Schwartz (incumbent Alternate)
(6) Carl Smith (incumbent)

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

ATTACHMENTS

1. Applications (Pgs. 2-15)
Submitted By: Ann Marie McKay Approved: .David A Kiff
Ann Marie McKay, City Clerk Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Ann Marie McKay, City Clerk
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Studio: 3275 Laguna Canyon Road M2, Laguna Beach, CA 92651 MICHAEL ERVIN Home: Laguna Beach, CA 92651 Experience ERVIN AD INTEGRATED MARKETING 1981 to 2014
President and Creative Director of a full-service marketing and design firm that provided Marketing, Strategic Direction, Brand Development and Maintenance, Design, Public Relations, Web Development, and Advertising for clients in a broad range of consumer and business product lines. Clients included Toyota Motor Sales, U.S.A.; COX Business Services; Nutro Pet Foods; Fleetwood Motor Homes; First American Title Insurance Co.; Honda; and Sizzix Arts and Craft Equipment, among others.

Skills • More than 35 years of experience in management, strategic planning, creative direction, and budgeting • Proven ability to develop a vision, achieve consensus, and deliver results in a wide variety of corporate and nonprofit settings
• Strong leadership, interpersonal, and communication skills • Artist specializing in painting and sculpture
• Experienced marketer focused on digital (social media, web, email) and print promotion

Education WOODBURY UNIVERSITY
A well-established business and art school located in Burbank, CA, I graduated with a Bachelor of Science degree in Professional Arts. There I studied marketing, commercial art, design, painting, life drawing, illustration, sculpture, art history, typography, and other related disciplines.

Affiliations I have deep experience serving on the Boards of Directors for several community, philanthropic, and business groups, including:
• City of Laguna Beach Arts Commission (current commissioner) • Laguna Beach Arts Alliance (current President)
• Laguna College Of Art and Design (prior Board of Trustees, Executive Committee member) • Festival of Arts (prior consultant to the Board)
• Pacific Marine Mammal Center (prior events committee member) • The Long Beach Symphony Orchestra (prior Board member) • The Nicole Brown Foundation (prior Chairman of the Board) • The American Red Cross, Orange County Chapter (prior Board member) • Business Marketing Association, Southern California Chapter (prior Chairman of the Board) • Long Beach Centennial Association (prior Marketing Committee member) I also am or have been a member of, or contributor to, the following groups:

Laguna Outreach for Community Arts (LOCA), Laguna Plein Air Painters Association (LPAPA), Laguna Art Museum, American Marketing Association, Communication Arts, Art Professionals Worldwide, C.E.R.T Laguna Beach, Creative Directors of America, The Sierra Club, Surfrider Foundation, South Orange County Executives, and Orange County Public Relations Society of America, among others.

Interests While I was privileged to lead a successful advertising, design and marketing business for much of my career, in recent years my attention has turned to the art that is created in our community and around the world – whether visual, musical, or performance. I also never take for granted how fortunate I am to live and work in Laguna Beach. I am an active member of the arts community, a dedicated patron of Laguna Beach businesses, and am committed to the well-being of our residents (as noted by my Laguna Beach Community Emergency Response Team certification).
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STAFF REPORT
Meeting Date:

June 9, 2026

STUDY SESSION
5 SUBJECT: 2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND DIRECT

STAFF WHETHER TO RETURN FOR FURTHER CITY COUNCIL
CONSIDERATION OF ANY POTENTIAL NOVEMBER 2026 REVENUE BALLOT

MEASURE
RECOMMENDATION: It is recommended that the City Council:

1. Receive a presentation on the results of the 2026 community survey from Probolsky Research;

2. Receive an update on the community outreach efforts conducted from February through May 2026, including four Community Town Hall meetings;

3. Discuss the three potential revenue measures evaluated in the survey: (1) a Transient Occupancy Tax increase, (2) a Sales Tax increase, and (3) a Business License Tax measure for bars and restaurants;

4. Provide direction to staff regarding whether to return to the City Council on July 7, 2026, with an agenda item to consider placing one or more revenue measures on the November 3, 2026, General Municipal Election ballot; and

5. If direction is given to bring any measure(s) forward, continue the Council Survey Ad Hoc Committee to work with staff and consultants on public education and outreach, assist in drafting final ballot measure language, and assist in preparing any resolutions and ordinances necessary to place the measure(s) on the November 3, 2026, ballot.

SUMMARY OF THE MATTER
This report provides the City Council with the results of the 2026 community survey conducted by Probolsky Research (Attachment 1), a summary of the community outreach activities conducted between February and May 2026, and information on three potential revenue measures that could be considered for placement on the November 3, 2026, General Municipal Election ballot. The three measures evaluated are an increase to the Transient Occupancy Tax (TOT), a local Sales Tax measure, and a Business License Tax measure applied to bars and restaurants.

The City Council is being asked to receive the information presented and provide direction to staff on whether to return at a future meeting (anticipated July 7, 2026) with resolutions to place one or more measures on the November 2026 ballot. Pursuant to California Government Code Section 53724 and California Elections Code Section 9222, a two-thirds (2/3) vote of the City Council (four affirmative votes for a five-member Council) is required to place a general tax measure on the ballot, and a general tax measure requires a simple majority (50% + 1) for voter approval.

Revenue Measure Survey Results at a Glance:
• Transient Occupancy Tax (12% → 14%, ~$3.0M annual): Strongest and most stable support – 74% initial yes, 75% informed yes, with 58% of informed-yes voters indicating a "definite" yes. 1 of 64
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• Sales Tax (1% local add-on, ~$7.8M annual): 47% initial yes / 49% no; 49% informed yes / 47% no. Significant improvement from October 2025 (informed yes up from 42.3%), but still short of the simple majority.
• Business License Tax (Bars & Restaurants, ~$8.6M annual): Weakest of the three – 44% initial yes / 48% no; no informed re-vote was conducted.
• Year-over-year trend: All three measures showed improved voter support from the October 2025 survey to the May 2026 survey, with the Sales Tax measure showing the most consequential movement (informed vote shifted from losing by approximately 2 points to leading by approximately 2 points).

There is no direct fiscal impact associated with receiving the report and providing direction. Costs associated with placing measures on the November 2026 ballot, including ballot printing and election services, would be brought forward as part of any future resolution placing the measure(s) on the ballot.

Alternatives: The Council may also direct staff to defer further consideration to a future election cycle.

DISCUSSION
Background
On February 27, 2024, the City Council directed staff to retain a community survey consultant and appointed a Council Ad Hoc Committee to work with staff in developing the survey objectives. Probolsky Research conducted a community survey in 2024 to evaluate potential revenue measures, and the City Council subsequently considered placing measures on the November 2024 ballot.

Since that time, the City's fiscal pressures have continued to grow. While balanced, the proposed Fiscal Year 2026-27 budget reflects rising costs for public safety staffing, wildfire mitigation, fuel modification, infrastructure maintenance, and construction, CalPERS pension obligations and insurance. To maintain a balanced budget, the proposed budget eliminates up to eight (8) positions, reduce contracts and capital outlay, and takes a conservative approach to revenue projections. Notable factors causing the fiscal pressures include reduced sales tax and transient occupancy tax receipts, the added public safety and other costs associated with mitigating visitor impacts, and costs related to the updating of aging infrastructure the implementation of the Facilities Master Plan (estimated at approximately $400 million over time and $25 million in the next five fiscal years).

In recognition of the City's long-term structural revenue needs, the City Council authorized renewed community outreach and a refreshed survey to evaluate community priorities and willingness to support locally controlled revenue measures.

Community Outreach Activities (February – May 2026)
Beginning in February 2026, City staff conducted an extensive community outreach campaign designed to inform residents about City services, infrastructure needs, the fiscal outlook, and potential revenue options, and to gather community feedback. The campaign included four Community Town Hall meetings (three in2 of 64 2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
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person and one virtual), eight smaller “ask anything” neighborhood meetings, meetings with Visit Laguna Beach, presentations at the Chamber of Commerce Government Affairs Committee, an ongoing online community survey through the City website, and presentations posted on the City's Community Outreach webpage. Two Town Hall meetings were recorded and made publicly available on the City’s YouTube Channel, along with the slide-deck presentation for each town hall. The webpage highlighting each meeting can be found here https://www.lagunabeachcity.net/our-initiatives/community-outreach.

A summary of outreach activities is provided below with additional details provided in Attachment 2:

Date Outreach Activity
February 19,
2026
In-person Town Hall – Overview of City services, infrastructure, fiscal outlook, and introduction to potential revenue measures.

March 9, 2026 In-person Town Hall – Continued discussion of fiscal conditions; introduced Charter City concept; community feedback on parking, downtown traffic, and TOT comparisons.

April 16, 2026 In-person Town Hall – Focused on infrastructure, undergrounding, wildfire mitigation, and revenue options. Robust Q&A on enforcement, beach maintenance, and economic vitality.

April 28, 2026 City Council action – Council decided not to pursue a City Charter measure for the November 2026 ballot.

May 5, 2026 Meeting with Hotel – City Staff met with Visit Laguna Beach and representatives from local hotels to present the information provided at the Town Halls, present the potential ballot measures, and gather input.

May 19–27,
2026
Probolsky Research conducted a statistically valid community survey of 400 likely November 2026 voters whichwas a follow-up survey to the one conducted by Probolsky in the fall of 2025.

May 20, 2026 Virtual Zoom Town Hall – City Manager and Assistant City Manager presented the fiscal outlook, infrastructure needs, and three potential revenue measures (TOT, Sales Tax, Business License Tax) to approximately 60 attendees.

Ongoing An online community survey hosted on the City webpage for residents unable to attend Town Halls.

Recurring Community Themes. Across all four Town Halls, several themes were raised consistently by residents:
• Concern that visitors and day-trippers are not paying their fair share of the cost of services they generate.
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• Strong interest in underground utilities, including along primary evacuation routes, to reduce wildfire risk.
• Questions about whether the City has sufficiently reduced spending before considering new taxes. • Questions about capital choices, such as the investment in the Promenade, and the disposition of the Community and Recreation Center (CRC).
• Interest in parking management (including increased rates), more aggressive parking enforcement, and the potential use of the ACT V lot for employee parking. • Concern about the long-term funding of public safety services (Police, Fire, and Marine Safety). • Concern about aging City facilities, including fire stations, the library, and community centers. • Interest in maintaining the City's character, including local businesses, while addressing increasing visitor impacts.

Hotel and Visit Laguna Beach Meeting
In addition to the general community outreach, City staff met with Visit Laguna Beach and representative from the hotels on May 5, 2026, to present the potential revenue measure and gather input. Because hotels are the primary collectors of the Transient Occupancy Tax and have direct visibility into competitive market dynamics that affect TOT revenue projections, their input is included here as a separate stakeholder consideration for the City Council. Key points raised by hotel representatives included the following:
• Hotel representatives emphasized that Laguna Beach’s lodging industry operates in an increasingly competitive regional market and expressed concern that further increases to the Transient Occupancy Tax could affect the City’s ability to compete for overnight visitors, conferences, group bookings, and special events. Representatives noted that lodging taxes are highly visible to consumers and event planners and, unlike most other local taxes, are paid directly by visitors at the point of purchase. They indicated that maintaining Laguna Beach’s competitiveness as a visitor destination is important to sustaining hotel occupancy, visitor spending, tourism-related employment, and the local economic benefits generated by overnight guests throughout the community. Representatives noted that Laguna Beach’s existing TOT rate is already among the highest in Orange County and they also have the California Tourism Association tax and expressed concern that additional increases may place the City at a competitive disadvantage relative to neighboring coastal destinations. 2026 Community Survey – Methodology and Results
Methodology. Probolsky Research conducted a statistically valid community survey of 400 likely November 2026 General Election voters from May 19 to May 27, 2026. The survey was roughly 20 minutes in length and administered in English and Spanish by phone (34%) and online via email and text-to-web (67%). The sample was drawn from data obtained from the Orange County Registrar of Voters and matched to the demographics of likely 2026 General Election voters in Laguna Beach. The overall margin of error is approximately ±5% at the 95% confidence interval.
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Key Findings.
• 75% of voters rate the overall job the City government is doing as good or fair. • Reducing wildfire risk and maintaining parks, trails, and open space are the most important priorities to voters. Reducing wildfire risk also shows the largest gap between importance and current satisfaction.
• 64% of voters believe the City has a great or some need for additional funds to maintain current service levels.
• Voters expressed concern about the impacts of tourists and traffic congestion on Coast Highway and Laguna Canyon Road.
• 54% support the City taking ownership of Laguna Canyon Road along with the associated financial responsibilities, with most expressing ‘somewhat’ rather than ‘strongly’ support. • 61% support changes to the City’s land use code to allow more housing sites Downtown or along Laguna Canyon Road in response to State housing law requirements. • 88% say it is important to maintain a local 24/7 emergency room in Laguna Beach, primarily ‘somewhat’ important.

Revenue Measures Evaluated in the Survey
The survey tested three potential revenue measures. Each measure was presented to respondents twice – first as an initial vote, then again as an informed vote after voters heard positive and negative messages about the measure.

To be clear, the reason that the survey included persuasive messaging was to test the impacts of arguments both in favor and against possible measures, not to skew the results. It would not make any sense to purposefully seek responses that are not consistent with how residents and voters are feeling.

A summary of the survey results is provided in the table below, with detailed information following:

Measure Annual
Revenue
Initial Yes Initial No Informed
Yes
Informed
No
Transient
Occupancy Tax
(12% → 14%)
~$3.0M 74% 22% 75% 21%
Sales Tax (1% local
add-on)
~$7.8M 47% 49% 49% 47%
Business License
Tax (Bars &
Restaurants)
~$8.6M 44% 48% Not retested—
Note: Percentages may not total 100% due to rounding and inclusion of “unsure” responses. 5 of 64
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Measure 1: Transient Occupancy Tax (TOT) Increase
The TOT measure tested would increase the City’s hotel and short-term rental tax (paid by hotel guests and short-term rental occupants) from 12% to 14%, generating an estimated $3.0 million annually. The City currently has a combined effective TOT rate of 14% – 12% for the City of Laguna Beach and 2% for the Laguna Beach Tourism Marketing District (LBTMD). The proposed measure would increase only the City’s portion.

Survey Results: 74% of voters initially indicated they would vote yes on the TOT measure, with 75% indicating yes on the informed vote after hearing positive and negative messages. Among those who said they would vote yes on the informed vote, 58% said they would 'definitely' vote yes, indicating relatively firm support. The strongest message tested was that the TOT is paid only by hotel and short-term rental guests, not by residents, 68% of voters said this information made them more likely to vote yes. The negative message that the TOT would hurt local hotels moved relatively few voters. In a head-to-head test, 67% of voters agreed with the pro-TOT statement that the increase 'is paid by visitors and will help us stay in front of visitor impacts.'
Measure 2: Sales Tax Increase
The Sales Tax measure tested would establish a one percent (1%) local sales tax, increasing the total sales tax rate in Laguna Beach from 7.75% to 8.75%, generating an estimated $7.8 million annually. According to City data, approximately 55% of sales tax collected in Laguna Beach is paid by tourists and visitors from outside the City.

Survey Results: On the initial vote, 47% of voters indicated they would vote yes, and 49% indicated they would vote no. Of those opposing, 68% indicated they would 'definitely' vote no, suggesting hardened opposition. After hearing positive and negative messages, the informed vote showed 49% yes and 47% no, essentially unchanged. The most effective positive message related to wildfire risk reduction (60% more likely to vote yes), followed by tourist contribution to sales tax revenue (48% more likely to vote yes). The negative message that the tax would 'hurt working families and fixed-income seniors' moved 36.5% of voters to less likely to vote yes. In the head-to-head Archer/Todd statement test, 46% agreed with the antitax 'Archer' statement.

Measure 3: Business License Tax (BLT) for Bars and Restaurants The BLT measure tested would update the City's business license tax for bars and restaurants by removing the current $1,650 annual cap and imposing a graduated tax on gross receipts, generating an estimated $8.6 million annually. The current business license tax structure for businesses paying based on gross receipts (Groups 1, 2, and 3) has not been adjusted since 1996.

Survey Results: On the initial vote, 44% of voters indicated they would vote yes, and 48% indicated they would vote no. Of those opposing, 61% indicated they would 'definitely' vote no. No informed re-vote was conducted on this measure. In the head-to-head 'Smith/Jones' statement test, 46% agreed with the anti-BLT 'Smith' statement that the increase would be 'a burden on businesses.' 6 of 64
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Background Information on Current Tax Structures
Transient Occupancy Tax. The City of Laguna Beach imposes a combined 14% charge on overnight visitor accomodations, consisting of: a 12% transient occupancy tax (TOT) imposed by the City (allocated to the City's General Fund, the Capital Improvement Fund, and the Measure LL Fund) and a 2% assessment imposed through the Laguna Beach Tourism Marketing District (LBTMD). These charges are paid by hotel and motel guests, as well as short-term rental occupants, for stays of thirty days or less. The proposed measure would increase the City's TOT rate from 12% to 14%, resulting in a combined effective rate of 16%.

Sales Tax. The sales tax rate in Laguna Beach is 7.75%, which is similar to the rate in a majority of Orange County cities. The City's share of the sales tax is 1% of the 7.75% rate. The remaining 6.75% is distributed among the County of Orange, the State of California, and the Orange County Transportation Authority. A number of Orange County cities ( 11 by the most recent count) have implemented local sales tax measures to fund services exclusively within their cities. If a sales tax measure were to pass, unlike the 7.75% general sales tax, 100% of the revenues generated (initially estimated to be $7.8 million per year) would remain with the City.

Business License Tax. Laguna Beach Municipal Code Chapter 5.08 outlines the taxation of businesses based on gross receipts, with provisions for both annual and flat-rate taxes. Businesses are categorized into three groups: Group 1 (retail, wholesale, manufacturing, artists) taxed at $0.44 per $1,000 with a cap of $1,650; Group 2 (personal services, recreation, entertainment) at $0.88 per $1,000 with a cap of $1,650; and Group 3 (professional practices) at $1.10 per $1,000 with a cap of $1,650. The flat-rate tax is adjusted annually based on CPI, but the Group 1, 2, and 3 rates and caps have not changed since 1996. The City receives approximately $1 million annually in business license tax revenue.

Other Context for Council Consideration
Wildfire Mitigation. Almost the entire city falls within high or very high fire hazard severity zones. The City has constructed 27 fuel modification zones (now in maintenance mode) and has two additional zones (Diamond Crest View and Hobo Canyon) under development. Following the 2025 Palisades and Eaton fires, the City invested an additional $4 million in fuel modification, utility undergrounding, AI-assisted fire detection technology, and expanded outdoor warning sirens. The upcoming budget includes an additional $2 million toward wildfire safety. Reducing wildfire risk consistently ranks as the top priority among survey respondents.

Facilities Master Plan. The City's Facilities Master Plan identifies an estimated $400 million in long-term needs for the maintenance, modernization, and replacement of aging public facilities, including fire stations (the oldest dating to the 1950s–60s), the Police Department, the Branch Library, community centers, and Lang Park. Tranche 1 priorities (Years 0–5) are estimated at approximately $25 million. .
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Utility Undergrounding. The City routinely contributes up to 20% of the total cost of a resident-driven undergrounding assessment district. With at least three major parts of the community left to underground, these costs (at 20% of total costs) may run into the tens of millions of dollars. Later in 2026, the City’s consultant will return with better cost parameters as to the specific costs per parcel or residence for the areas remaining to be undergrounded in Laguna Beach.

Addressing Visitor Impacts. The community is relatively small compared to the amount of visitors who arrive here annually. As noted, visitors pay some of the costs of their beach visits, but not all. Parking, sales tax, and hotel taxes are all contributed by visitors in part – but the size of our Police, Marine Safety, and other services are high in large part because of services to visitors.

Ballot Measure Considerations
Voting Threshold for Ballot Placement. Pursuant to California Government Code Section 53724 and California Elections Code Section 9222, a two-thirds (2/3) vote of the City Council membership (four affirmative votes for a five-member Council) is required to place a general tax measure on the ballot. Per California Constitution Article XIIIC, a general tax requires a simple majority (50% + 1) of voters for approval.

General Tax vs. Special Tax. All three measures evaluated are general tax measures, meaning the revenue would be deposited into the General Fund and could be used for any general governmental purpose. General taxes legally cannot be restricted by the ballot question itself to specific uses; however, the City Council may adopt an accompanying resolution stating the intended uses of the funds. A special tax restricting funds to specified purposes would require a two-thirds (2/3) supermajority of voters for approval, rather than a simple majority.

Multiple Measures on the Same Ballot. The City Council may place one, two, or three measures on the November 2026 ballot. Each measure would be evaluated independently by voters. Staff notes that polling and election research generally indicate that voters may experience 'tax fatigue' when multiple revenue measures are presented on the same ballot, which can reduce support for each measure compared to standalone placement.

Year-Over-Year Comparison: 2025 vs. 2026 Survey Results Probolsky Research conducted a similar voter survey in October 2025, which tested the same three potential revenue measures for transient occupancy tax and sales tax and a modified verion of a business license tax measure. Comparing the two surveys provides important context regarding how voter sentiment has shifted over the past seven months and how each measure is trending heading into the November 2026 election:
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Measure Vote Stage 2025 Yes 2026 Yes Change Crosses 50%? Transient Occupancy Tax
(12% → 14%)
Initial Yes 66.5% 74% +7.5 pts Yes (both years)
Informed Yes 68.3% 75% +6.7 pts Yes (both years)
Sales Tax (1% local add-on) Initial Yes 39.8% 47% +7.2 pts No (both years) Informed Yes 42.3% 49% +6.7 pts Closer in 2026
Business License Tax (Bars
& Restaurants)*
Initial Yes 42.3% 44% +1.7 pts No (both years)
Informed Yes 47.0% Not retested— —
* Note on the Business License Tax: The 2025 survey tested a BLT measure projected to generate approximately $1.2 million annually, while the 2026 survey tested a larger measure projected to generate approximately $8.6 million annually. The two measures are not directly comparable due to the difference in scope.

Key Observations from Year-Over-Year Comparison:
• Sales Tax measure shows the most significant positive movement. Initial yes support grew from

39.8% to 47% (+7.2 points), and informed yes support grew from 42.3% to 49% (+6.7 points).

Notably, the informed vote in 2025 showed yes losing to no by approximately 2 points (42.3% to

44.3%), while in 2026 the informed vote shows yes leading no by approximately 2 points (49% to 47%) – representing a meaningful shift in voter sentiment toward the measure, though still short of the simple majority required for passage.
• Transient Occupancy Tax measure also strengthened across both stages, with initial yes support up 7.5 points (66.5% to 74%) and informed yes support up 6.7 points (68.3% to 75%). The TOT remained the strongest-supported measure in both years and now exceeds 75% on the informed vote – a level generally considered to provide a substantial cushion for general election dynamics. • Business License Tax measure showed only modest improvement on the initial vote (+1.7 points).

However, the 2026 measure tested a substantially larger revenue measure ($8.6 million versus $1.2 million in 2025), and remained the weakest of the three measures in both surveys.

Possible Contributing Factors. Staff and the consultant have identified several factors that may have contributed to the year-over-year improvement, including the impact of the January 2025 Palisades and Eaton fires on regional perceptions of wildfire risk; growing public awareness of the public safety and other costs associated with mitigating visitor impacts; sustained community outreach including four Town Halls between February and May 2026; and refinements to the ballot question language and accompanying messaging tested in the 2026 survey.
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Survey Conclusion
Based on the 2026 survey results and the year-over-year comparison with the 2025 survey, the TOT measure received the strongest and most stable voter support (74% initial yes, 75% informed yes), with the firmest 'definite' yes responses, and showed continued growth over 2025. The Sales Tax measure showed the most significant year-over-year improvement and now achieves a slight majority lead on the informed vote (49% yes to 47% no), although it has not yet crossed the 50% threshold. Opposition to the sales tax remains hardened, with 68% of 'no' voters indicating 'definitely no.' The BLT measure showed the weakest support of the three (44% yes, 48% no) and was not retested with an informed vote. The full 2026 survey results presentation is provided as Attachment 1, and the 2025 survey results are provided as Attachment 2 for reference.

Next Steps
Staff is requesting that the City Council provide direction on whether to return at a future Council meeting in later June or early July 2026 with one or more resolutions to place revenue measure(s) on the November 3, 2026, ballot. If direction is given to move forward, it is further recommended that the Council Revenue Ad Hoc Committee continue its work with staff and consultants to develop public education materials, refine ballot question language, and prepare the resolutions and ordinances necessary to place the measure(s) on the ballot.

Should the Council direct staff to bring forward one or more measures, the following timeline outlines the key milestones and statutory deadlines, with the complete County Election Calendar included in Attachment 5:

Event Scheduled Date
City Council Workshop – Review of survey results,
community outreach, and revenue measure options
June 9, 2026
Draft ballot question language and ordinances (if
Council directs)
July 7, 2026
Council action on ballot measure resolution(s); 2/3 vote of Council required to place general tax on ballot (four affirmative votes for a five-member Council)
June 23 or July 7, 2026 (latest is no
later than 88 days before election but
the OC Registrar sets an earlier
deadline)
Last day to submit City Attorney's impartial analysis
and City Manager's fiscal analysis
August 7, 2026
Filing period for arguments in favor, against, and
rebuttals
August 12 2026
General Municipal Election – Election Day Tuesday, November 3, 2026 10 of 64
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Revenue Ad Hoc Committee
Staff would like to express its sincere appreciation to the Council Revenue Ad Hoc Committee, consisting of Mayor Orgill and Councilmember Whalen, for their substantial time, thoughtful guidance, and leadership throughout this process. Should the City Council direct staff to move forward with placing one or more measures on the November 3, 2026 ballot, staff respectfully requests that the Revenue Ad Hoc Committee continue to assist staff and the City's consultants with refining ballot question language, developing public education materials, and preparing the resolutions and ordinances necessary to place the measure(s) before the voters.

FINANCIAL ANALYSIS
There is no direct fiscal impact as a result of the recommended action of receiving the report and providing direction to staff. Costs associated with placing measure(s) on the November 2026 ballot, including continued consultant services, City Attorney services for ballot question drafting and impartial analyses, ballot printing, and County election services, would be brought forward as part of any future resolution(s) adopting the measure(s).

Estimated Annual Revenue if Approved by Voters:
• Transient Occupancy Tax (12% → 14%): approximately $3.0 million annually. • Sales Tax (1% local add-on): approximately $7.8 million annually. • Business License Tax (bars and restaurants): approximately $8.6 million annually.

All revenues from any of the measures, if approved, would be deposited into the City's General Fund.

ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
This action supports the City Council's 2026 Strategic Priorities, including Fiscal Sustainability, Public Safety and Emergency Preparedness, and Infrastructure Reinvestment. The community outreach and survey work directly support transparent, informed decision-making regarding the City's long-term financial sustainability and its ability to maintain the services and infrastructure that Laguna Beach residents value most.

ENVIRONMENTAL ANALYSIS
The recommended action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Sections 15378(b)(3) and 15061(b)(3) of the State CEQA Guidelines, as receiving information and providing direction to staff is not a 'project' under CEQA and has no potential to result in a direct or indirect physical change in the environment.

ATTACHMENTS

1. Probolsky Research – 2026 Voter Poll Results Presentation (Pgs. 12-45)

2. Community Outreach Summary (February – May 2026 Town Halls) (Pgs. 46-48)

3. Comparison of Transient Occupancy Tax Rates in Orange County Cities (Pg. 49)

4. Comparison of Sales Tax Rates in Orange County Cities (Pgs. 50-51)

5. Calendar for Orange County General Election, November 3, 2026 (Pgs. 52-54) 11 of 64
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Submitted By:
. Approved: .David A Kiff
Gavin Curran, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Gavin Curran, Assistant City Manager
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City of Laguna Beach
Voter Poll
Results Presentation
May 2026
Opinion Research on
Elections and Public Policy

PROBOLSKY RESEARCH
23 Corporate Plaza Suite 150 Newport Beach CA 92660
Newport Beach
(949) 855-6400
San Francisco
(415) 870-8150
Washington DC
(202) 559-0270
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City of Laguna Beach - Voter Poll
Survey Methodology*
1 Survey Details
Phone (landline and mobile)
Online (email and text to web) Mode
Language English and Spanish
Length 20 minutes
Target Respondents Likely November 2026 General Election voters Survey Fielding May 19 - 27, 2026
Margin of Error +/-5%
Survey Participants 400
Sample
The sample was compiled from data obtained from the
Orange County Registrar of Voters. We called, emailed,
and texted voters. We matched the demographics of City of Laguna Beach likely 2026 General Election voters.

Data Collection Explained
Interviews were conducted by phone (34%) and online
methods (67%). Phone participants were interviewed
through landline (25%) and mobile (75%) calls. Online
participants were invited by email (50%) and text message (50%) to access the survey by computer, tablet, or smart phone.

Respondents in all modes chose their preferred language, English (98%) and Spanish (2%).

Security measures precluded individuals from completing the survey more than once.
*Due to rounding, totals shown on charts may not add up to 100% Probolsky Research is a Latina- and woman-owned market and opinion research firm with corporate, election, government, and nonprofit clients. 14 of 64
2 39.0% 36.3%

22.0%

2.8%
Good Fair Poor Unsure
75% rate the overall job the Laguna Beach City
government is doing as good or fair
Question 1: How would you rate the job the Laguna Beach City government is doing overall?

41.3%

50.5%

39.0%

39.5%

27.8%

36.3 17.0% 18.8% 22.0%
2024 2025 2026
Good
Fair
Poor
75%
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Reducing wildfire risk and maintaining parks, trails,
and open space are the most important priorities
Question 2: Now we have a list of priorities you might have for Laguna Beach, please indicate which are very important to you personally. Select all that apply. 3 61.0%

53.8%

48.3%

41.5%

39.5%

37.8%

35.8%

32.3%

22.8%

22.0%

19.8%

19.3%

0.5%
Reducing wildfire risk
Maintaining parks, trails, and open space
Maintaining streets and roads, sidewalks, crosswalks
Balancing the City budget
Maintaining and improving police, fire, marine safety services and facilities
Keeping local taxes low
Undergrounding powerlines on Laguna Canyon Road for wildfire safety
Addressing homelessness
Supporting affordable housing for seniors and artists
Providing additional public parking
Encouraging improved wireless services in the City
Other
None of these
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4 Voters are most satisfied with maintaining and improving police, fire, marine safety services and facilities
Question 3: Please indicate which of the following priorities you are personally satisfied with how the City of Laguna Beach is. Select all that apply.

45.3%

39.3%

31.5%

27.8%

19.5%

12.5%

12.0%

10.8%

10.5%

10.0%

9.8%

3.5%

10.0%

3.5%
Maintaining and improving police, fire, marine safety services and facilities Maintaining parks, trails, and open space
Maintaining streets and roads, sidewalks, crosswalks
Reducing wildfire risk
Addressing homelessness
Supporting affordable housing for seniors and artists
Balancing the City budget
Undergrounding powerlines on Laguna Canyon Road for wildfire safety Encouraging improved wireless services in the City
Keeping local taxes low
Providing additional public parking
Other
None of these
Unsure
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5 61.0%

41.5%

37.8%

35.8%

48.3%

53.8%

32.3%

22.0%

22.8%

19.8%

39.5%

27.8%

12.0%

10.0%

10.8%

31.5%

39.3%

19.5%

9.8%

12.5%

10.5%

45.3%
Reducing wildfire risk
Balancing the City budget
Keeping local taxes low
Undergrounding powerlines on Laguna Canyon Road for wildfire safety Maintaining streets and roads, sidewalks, crosswalks
Maintaining parks, trails, and open space
Addressing homelessness
Providing additional public parking
Supporting affordable housing for seniors and artists
Encouraging improved wireless services in the City
Maintaining and improving police, fire, marine safety services and facilities Importance Satisfaction

33.2%

29.5%

27.8%

25.0%

16.8%

14.5%

12.8%

12.2%

10.3%

9.3%
-5.8%
Question 2: Now we have a list of priorities you might have for Laguna Beach, please indicate which are very important to you personally. Select all that apply.

Question 3: Please indicate which of the following priorities you are personally satisfied with how the City of Laguna Beach is. Select all that apply.

The largest gap between importance and satisfaction is
in reducing wildfire risk
18 of 64
The impact of tourists and traffic congestion on Coast Highway and Laguna Canyon Road are the most concerning issues
Question 4: Now we have a list of possible concerns for Laguna Beach residents, please indicate which are concerning to you. Select all that apply. 6 61.3%

52.8%

47.0%

44.0%

35.8%

32.3%

25.8%

25.3%

23.0%

22.8%

22.3%

21.3%

18.5%

15.3%

11.0%

6.0%

5.5%
The impact of tourists on the community
Traffic congestion on Coast Highway and Laguna Canyon Road Traffic congestion on local streets and roads
Maintaining the character of Laguna Beach
Wildfire and evacuation safety
Waste and inefficiency in local government
Hazards of utility poles and above ground wires throughout the City Pedestrian safety
A lack of affordable housing
The amount we pay in local taxes
Not enough parking
The impact of homelessness
Crime and public safety
Lack of wireless service availability
Use and availability of recreation facilities
9-1-1 emergency response times
Other
19 of 64
7 9.0%

39.3%

15.8%

24.3%

11.8%
Great need Some need Little need No real need Unsure
64% think there is a need for additional funds to
provide the level of City services and facilities
Question 5: Do you think the City has a great need, some need, a little need, or no real need for additional funds to maintain the level of City services and facilities that Laguna Beach residents use?
64%

63.0%

61.0%

64.1%

8.0% 15.8%

11.8 28.8% 23.5%

24.3%
2024 2025 2026
Need
Unsure
No real need
20 of 64
54% support the City taking ownership of Laguna
Canyon Road along with the financial responsibilities
The City is in discussions with Caltrans about taking ownership of Laguna Canyon Road from El Toro Road to Coast Highway. Local control could allow the city to underground power lines to reduce fire risk and prevent utility pole collisions, with potential payment from Southern California Edison of millions in undergrounding dollars. Caltrans could also give the City approximately $15 million in the process. However, the city would then assume responsibility for ongoing operating costs and the liability of owning the road.

Question 6: Do you support or oppose the city taking ownership of Laguna Canyon Road along with the financial responsibilities? 8 53.8%

37.0%

9.3%
Support Oppose Unsure
21 of 64
61% support changes to the City’s land use code to allow more housing sites Downtown or along Laguna Canyon Road
New state laws require Laguna Beach to identify more sites which could accommodate housing. Potential locations include allowing generally some second-story units above the central part of downtown, adding some third-story units along the edges of downtown, and allowing multi-family housing of two or three stories in Laguna Canyon between Art-A-Fair and Laguna College of Art + Design Main Campus. If the City does not site housing in these locations, it must identify the same amount of housing sites in other locations across Laguna Beach.

Question 7: Do you support or oppose changes to the City’s land use code to allow for more housing sites Downtown and along Laguna Canyon Road? 9 48.3%

34.8%

34.5%

4.5%
Support more housing along Laguna Canyon Road
Support more housing Downtown
Oppose more housing
Unsure
61%
Selected at least one
“Support” option
22 of 64
70% say it is important for the city to upgrade and
retrofit aging facilities
Question 8: How important is it for the city to upgrade and retrofit aging facilities (such as fire stations, the library, and community centers) to ensure they comply with current and future earthquake and other safety standards?
10 70.3%

25.0%

4.8%
Important Unimportant Unsure

76.8%

70.3%

2.8%% 4.8%

20.5% 25.0%
2025 2026
Important
Unsure
Unimportant
23 of 64
88% say it is important that there is a local 24/7
emergency room in Laguna Beach
Question 9: Providence St Josephs, which operates Mission Hospital Laguna Beach, said that, by 2030, it will be closing the acute care hospital and changing the services that it provides to the community. Providence proposes a community health center, with diagnostic testing, outpatient surgery, and urgent care. But they have said that it will not operate a traditional 24/7 emergency room in Laguna Beach. For context, the Laguna Beach emergency room sees about 17,000 patients per year, but no one is routed there for heart attacks or strokes – ambulances take those patients directly to larger hospitals. How important is it to you that there is a local 24/7 emergency room in Laguna Beach? 11 87.8%

10.8%

1.5%
Important Unimportant Unsure
24 of 64
Initial vote: 49% would vote no on a one percent
sales tax
Here is a potential ballot measure that may be on the ballot in Laguna Beach this year. If the election were held today, please indicate how you would vote.

Question 10: “To help cover the costs of visitors to Laguna Beach, to maintain and improve police and fire response, to reduce wildfire risk by more utility undergrounding along evacuation routes, shall the City of Laguna Beach adopt a measure establishing a one percent sales tax, until ended by voters, providing approximately $7,800,000 annually, with annual independent audits, public disclosure of expenditures, and all funds only for Laguna Beach?” 12 46.5% 48.8%

4.8%
Vote yes Vote no Unsure
25 of 64

26.3%

10.5% 26.3%

36.8% More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know
52% are more likely to vote yes on the sales tax knowing that the measure incorporates fiscal accountability
Now we have some statements about the measure. Please indicate whether this information makes you more likely or less likely to vote for the ballot measure.

Question 14: The measure incorporates fiscal accountability including annual independent financial audits, public review of expenditures and all funds remaining in the City of Laguna Beach and cannot be taken by Sacramento, the County of Orange, or any other government agency. 13 51.5%

31.8%

11.3%

5.5%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

26.7%

49.7%

19.5%

4.1%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know
Initially said unsure
Initially vote no
26 of 64

34.4%

42.1%

19.5%

4.1%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

31.6%

31.6%

10.5%

26.3% More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know
60% are more likely to vote yes on the sales tax knowing that the measure could allow the City to reduce wildfire risks Now we have some statements about the measure. Please indicate whether this information makes you more likely or less likely to vote for the ballot measure.

Question 15: Laguna Beach faces significant risk of wildfire. The measure could allow the city to reduce wildfire risks by funding vegetation management, evacuation planning, and other fire safety improvements.
14 59.5%

25.8%

10.5%

4.3%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know Initially said unsure
Initially vote no
27 of 64
51% are more likely to vote yes knowing the measure could fund additional police officers, firefighters, and paramedics Now we have some statements about the measure. Please indicate whether this information makes you more likely or less likely to vote for the ballot measure.

Question 16: Tourists coming to Laguna Beach have caused a 20% increase in calls for service from the police department. Fire department calls have gone up, too. Marine safety also must respond to large crowds. At the same time, the cost of providing public safety services is increasing every year. Funding from this measure could provide additional resources to increase the number of police officers, firefighters, paramedics. 15 50.8%

28.8%

15.3%

5.3%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know Initially said unsure
Initially vote no

24.6%

47.2%

24.1%

4.1%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

36.8%

21.1%

10.5%

31.6% More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know
28 of 64
56% are more likely to vote yes knowing the measure would provide resources to address impacts from day tourists
Now we have some statements about the measure. Please indicate whether this information makes you more likely or less likely to vote for the ballot measure.

Question 17: Without the measure, Laguna Beach’s city government will have a harder and harder time keeping up with the impacts of day tourists – such as littering, loud music in public, smoking on the beach, or parking violations. 16 Initially said unsure
Initially vote no

56.0%

27.3%

13.0%

3.8%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

29.2%

46.2%

21.5%

3.1%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

47.4%

15.8%

5.3%

31.6% More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know
29 of 64
41% are more likely to vote yes knowing the measure could expand parking options and help direct visitors to available parking outside residential neighborhoods
Now we have some statements about the measure. Please indicate whether this information makes you more likely or less likely to vote for the ballot measure.

Question 18: With new revenue from the measure, the City could build more parking lots, add more meters, pay stations, and technology for people to know where to find available parking away from residential neighborhoods.
17 Initially said unsure
Initially vote no

40.5%

36.0%

19.3%

4.3%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

19.0%

47.2%

30.3%

3.6%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

26.3%

21.1%

21.1%

31.6% More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know
30 of 64

11.8%

47.7% 35.4%

5.1%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

5.3%

21.1%

26.3%

47.4%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know
Opinions are mixed about the measure because it would
raise taxes on everyday purchases in Laguna Beach
Now we have some statements about the measure. Please indicate whether this information makes you more likely or less likely to vote for the ballot measure.

Question 19: The measure means everyone who buys things in Laguna Beach will pay higher taxes. As the cost of living rises, this hurts working families and fixed-income seniors the most.
18 Initially said unsure
Initially vote no

24.3%

31.8%

36.5%

7.5%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know
31 of 64
19 Message Effectiveness
Positive messages [Percent More Likely to Vote Yes] 2026 2025

59.5% 59.3% *Laguna Beach faces significant risk of wildfire. The measure could allow the city to reduce wildfire risks by funding vegetation management, evacuation planning, and other fire safety improvements.

56.0% - Without the measure, Laguna Beach’s city government will have a harder and harder time keeping up with the impacts of day tourists – such as littering, loud music in public, smoking on the beach, or parking violations.

51.5% 51.8% The measure incorporates fiscal accountability including annual independent financial audits, public review of expenditures and all funds remaining in the City of Laguna Beach and cannot be taken by Sacramento, the County of Orange, or any other government agency.

50.8% 50.8%
*Tourists coming to Laguna Beach have caused a 20% increase in calls for service from the police department. Fire department calls have gone up, too. Marine safety also must respond to large crowds. At the same time, the cost of providing public safety services is increasing every year. Funding from this measure could provide additional resources to increase the number of police officers, firefighters, paramedics.

48.3% 41.3% According to city data approximately 55% of the nearly $7 million sales tax dollars collected in Laguna Beach comes from tourists and visitors from outside the city.

40.5% - With new revenue from the measure, the City could build more parking lots, add more meters, pay stations, and technology for people to know where to find available parking away from residential neighborhoods.

24.3% - The measure means everyone who buys things in Laguna Beach will pay higher taxes. As the cost of living rises, this hurts working families and fixed-income seniors the most.

Negative messages [Percent Less Likely to Vote Yes] 2026 2025

36.5% 50.0% The measure means everyone who buys things in Laguna Beach will pay higher taxes. As the cost of living rises, this hurts working families and fixed-income seniors the most.
*Note: Minor revisions have been made to message wording. 32 of 64
Informed vote: 49% would vote yes on a one percent
sales tax
Now, please consider the sales tax measure again.

Question 20: Knowing what you know now, how would you vote on this measure, “To help cover the costs of visitors to Laguna Beach, to maintain and improve police and fire response, to reduce wildfire risk by more utility undergrounding along evacuation routes, shall the City of Laguna Beach adopt a measure establishing a one percent sales tax, until ended by voters, providing approximately $7,800,000 annually, with annual independent audits, public disclosure of expenditures, and all funds only for Laguna Beach?” 20 46.5% 48.8%

4.8%

48.8%

44.5%

6.8%
Vote yes Vote no Unsure
initial Informed initial initial Informed Informed
33 of 64
46% agree with Archer in that they already pay enough
in taxes and oppose a sales tax increase
Question 21: Now we have two statements from Laguna Beach residents. Please choose which statement you agree with the most.

Archer: “I already pay enough in taxes. I oppose the sales tax increase. The City should spend the money it already gets more responsibly instead of asking for more.”.

Todd: “I’m worried about being overwhelmed by visitors, and want the City of Laguna Beach to have the resources it needs to protect our community’s future and safety, so I am OK with a sales tax increase to mitigate visitor impacts and to protect us from wildfire.” 21 46.0% 44.0%

10.0%
Agree with Archer Agree with Todd Unsure
34 of 64
Initial vote: 74% would vote yes on the measure to
increase Transient Occupancy Tax
Here is a potential ballot measure that may be on the ballot in Laguna Beach next year. If the election were held today, please indicate how you would vote.

Question 22: “To help cover the costs of visitors to Laguna Beach, to maintain and improve police and fire response, to reduce wildfire risk via more utility undergrounding to improve evacuation routes, shall the City of Laguna Beach adopt a measure increasing the transient occupancy (hotel) tax from twelve percent to fourteen percent, until ended by voters, providing approximately $3,000,000 annually, with annual audits, public disclosure of expenditures, and funds only for Laguna Beach?” 22 73.5%

20.3%

6.3%
Vote yes Vote no Unsure
35 of 64
68% are more likely to vote yes on the TOT knowing that it is paid only by guests at hotels and short-term rentals Now we have some statements about the measure to increase the city’s Transient Occupancy Tax, otherwise known as a hotel and short-term rental tax. Please indicate whether this information makes you more likely or less likely to vote for the measure.

Question 25: The transient occupancy (hotel) tax is paid only by guests at hotels and short-term rentals like Airbnb - it is not a tax on your home or property. 23 Initially said unsure
Initially vote no

68.0%

20.5%

7.0%4.5%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

24.7%

48.1%

25.9%

1.2%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

36.0%

12.0% 12.0%

40.0%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know
36 of 64
After hearing that TOT will hurt local hotels, half are undecided on how they will vote
Now we have some statements about the measure to increase the city’s Transient Occupancy Tax, otherwise known as a hotel and short-term rental tax. Please indicate whether this information makes you more likely or less likely to vote for the measure.

Question 26: A transient occupancy (hotel) tax will hurt local hotels because guests could choose to stay in another nearby city. 24 Initially said unsure
Initially vote yes

25.5%

50.3%

19.5%

4.8%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

27.9%

55.1%

15.3%1.7%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know

12.0%

28.0%

20.0%

40.0%
More likely to vote for
Makes no difference to me
Less likely to vote for
Don’t know
37 of 64
25 Message Effectiveness
Positive messages [Percent More Likely to Vote Yes] 2026 2025

68.0% 63.3% The transient occupancy (hotel) tax is paid only by guests at hotels and short-term rentals like Airbnb - it is not a tax on your home or property.

Negative messages [Percent Less Likely to Vote Yes] 2026 2025

19.5% 26.3% A transient occupancy (hotel) tax will hurt local hotels because guests could choose to stay in another nearby city.
*Note: Minor revisions have been made to message wording. 38 of 64
Informed vote: 75% would vote yes on the measure to
increase Transient Occupancy Tax
Now here is the measure again. If the election were held today, please indicate how you would vote.

Question 27: “To help cover the costs of visitors to Laguna Beach, to maintain and improve police and fire response, to reduce wildfire risk via more utility undergrounding to improve evacuation routes, shall the City of Laguna Beach adopt a measure increasing the transient occupancy (hotel) tax from twelve percent to fourteen percent, until ended by voters, providing approximately $3,000,000 annually, with annual audits, public disclosure of expenditures, and funds only for Laguna Beach?” 26 73.5%

20.3%

6.3%

75.0%

20.5%

4.5%
Vote yes Vote no Unsure
initial Informed initial initial Informed Informed
39 of 64
67% agree with Jones that the TOT increase is paid by
visitors and will help improve services
Question 28: Now we have two statements from Laguna Beach residents. Please choose which statement you agree with the most.

Smith: “The transient occupancy (hotel) tax increase is going to be a burden on business travelers and friends and family who come to visit Laguna Beach. Some might even choose to stay in other cities with lower transient occupancy taxes.”.

Jones: “The new revenue from the transient occupancy (hotel) tax increase is paid by visitors and will help us stay in front of visitor impacts, as well as improving services for Laguna Beach residents without costing residents anything.”
27 23.0%

67.0%

10.0%
Agree with Smith Agree with Jones Unsure
40 of 64
48% would vote no on the Business License Tax
measure for bars and restaurants
There is one more potential measure that is an option for the ballot in Laguna Beach this year. If the election were held today, please indicate how you would vote.

Question 29: “To help cover costs of visitors to Laguna Beach, maintain and improve police and fire response, to reduce wildfire risk via more utility undergrounding to improve evacuation routes, shall the City of Laguna Beach adopt a measure updating its business license tax for bars and restaurants by removing the $1,650 annual cap and imposing a graduated tax on gross receipts as set forth in the measure, generating approximately $8,600,000 annually until ended by voters, with all funds used locally?” 28 41.3%

47.5%

11.3%
Vote yes Vote no Unsure
41 of 64
46% agree with Smith that the Business License Tax
increase is going to be a burden on businesses
Question 30: Now we have two statements from Laguna Beach residents. Please choose which statement you agree with the most.

Smith: “The Business License Tax increase is going to be a burden on businesses – it may make people decide not to patronize our restaurants and bars, further harming the local economy.“
Jones: “The new revenue from this increase in the Business License Tax will be paid by visitors to directly offset the costs of visitor impacts to the community, and I’m OK with that even though I’ll pay a bit more, too.”
29 46.3%

40.3%

13.5%
Agree with Smith Agree with Jones Unsure
42 of 64
56% would vote yes on the Transient Occupancy Tax
measure
Question 31: The Laguna Beach City Council will soon decide whether to place a sales tax measure, transient occupancy (hotel) tax measure, or business license measure on the November 2026 ballot. Please indicate which measure(s) you think should go before the voters? Select all that apply. 30 56.3%

43.0%

23.5%

19.8%

4.5%
Transient Occupancy Tax measure
Sales Tax measure
Business License Tax measure
None of them
Unsure
43 of 64
Demographics
31 44 of 64
32 Respondent demographics by gender, age group, ethnicity, years of residency, education, place of birth, and party

49.0%

51.0%
Male
Female

9.1%

5.0%

11.3%

29.8%

44.3%
18-29
30-39
40-49
50-64
65+

6.0%

82.5%

5.0%

5.8%

0.8%
Latino/Hispanic
White/Caucasian
Black/African American
Asian/Pacific Islander
Other
Gender Age Group Ethnicity Years of residency
Education Place of Birth Party

47.3%

29.3%

17.5%
Democratic
Republican
No Party Preference

29.8%

70.3%
No college
College

82.5%

8.8%

8.8%
U.S. born
Foreign born
Birthplace unknown

0.8%

5.8%

10.0%

14.8%

6.5%

60.0%

2.3%
Less than 1 year
1 to 5 years
6 to 10 years
11 to 15 years
16 to 20 years
21 years and over
Prefer not to answer
45 of 64
Questions?
Adam Probolsky, President
O: 949-855-6400 | M: 949-697-6726
E: [email protected]
Sergio Martinez, Senior Research Analyst
E: [email protected]
Opinion Research on
Elections and Public Policy

PROBOLSKY RESEARCH
23 Corporate Plaza Suite 150 Newport Beach CA 92660
Newport Beach
(949) 855-6400
San Francisco
(415) 870-8150
Washington DC
(202) 559-0270
46 of 64
Community Outreach Summary
City of Laguna Beach | February – May 2026 | Attachment to June 9, 2026 Agenda Report Between February and May 2026, the City conducted broad community outreach to inform residents about the fiscal outlook, service and infrastructure needs, and potential revenue measures, and to gather community input. Outreach included four Community Town Hall meetings and an ongoing online community survey hosted on the City's Community Outreach webpage.

Community Town Hall Meetings
Between February and May 2026, the City hosted four Community Town Hall meetings to inform residents about City services, the fiscal outlook, infrastructure needs, and potential revenue measures, and to gather direct community feedback. Three of the four meetings were held in person, and the fourth was conducted virtually via Zoom to broaden participation. Each meeting was led by the City Manager and Assistant City Manager/CFO, with subject-matter staff available for technical questions. Each Town Hall was recorded and posted to the City's YouTube channel along with the slide presentation, allowing residents who could not attend in person to review the materials at their convenience.

Town Hall #1 — February 19, 2026 (In-Person)
The first Town Hall introduced residents to the City’s overall fiscal context and the rationale for evaluating potential new revenue. Staff presented an overview of City services, the proposed Fiscal Year 2026-27 budget, rising cost pressures including public safety staffing, CalPERS pension obligations, insurance, wildfire mitigation and fuel modification, infrastructure maintenance, and construction, and the steps the City had already taken to balance the budget (including the elimination of eight full-time positions and reductions in contracts and capital outlay). The session also introduced the long-term infrastructure picture, including the Facilities Master Plan and the anticipated closure of Mission Hospital Laguna Beach. The three potential revenue measure concepts (TOT, Sales Tax, and Business License Tax) were introduced for community awareness and initial feedback. Resident questions focused on cost-reduction steps already taken, the scope and prioritization of the Facilities Master Plan, and the rationale for considering each potential revenue measure.

Town Hall #2 — March 9, 2026 (In-Person)
The second Town Hall continued the fiscal conversation and expanded into policy options beyond direct revenue measures. Staff introduced the City Charter concept – a separate but related policy question regarding whether Laguna Beach should pursue charter city status to gain expanded local control over taxation, contracting, and other matters. Discussion also covered parking management (including residential parking impacts and potential use of the ACT V lot), downtown traffic concerns, comparisons of Laguna Beach’s transient occupancy tax rate with surrounding Orange County cities, and the City’s relationship with Visit Laguna Beach. Resident feedback on the City Charter concept was mixed, with some interest in the additional flexibility and others expressing concerns about complexity, process, and unintended consequences. This feedback informed the City Council’s subsequent decision on April 28, 2026, to not pursue a City Charter measure for the November 2026 ballot.

Attachment 2
46 47 of 64
Town Hall #3 — April 16, 2026 (In-Person)
The third Town Hall focused on infrastructure investment and risk reduction. Presentations addressed wildfire mitigation activities (including fuel modification zones, AI-assisted fire detection, expanded outdoor warning sirens, and the additional $4 million invested following the 2025 Palisades and Eaton fires), utility undergrounding priorities, evacuation route reliability, and the potential transfer of Laguna Canyon Road from Caltrans, including the associated $15 million transfer payment and potential undergrounding contributions from Southern California Edison. Staff also revisited the three revenue measure concepts with refined revenue estimates. The Q&A was extensive and covered code enforcement, beach maintenance, downtown economic vitality, the long-term operating cost implications of assuming responsibility for Laguna Canyon Road, and concerns about repeating past experiences with state and regional agencies.

Town Hall #4 — May 20, 2026 (Virtual via Zoom)
The final Town Hall in the series was held virtually via Zoom and drew approximately 60 attendees. The City Manager and Assistant City Manager/CFO presented an integrated summary of the City's fiscal outlook, infrastructure needs, and the three potential revenue measures with revenue estimates aligned to the ballot language being evaluated in the concurrent Probolsky Research voter survey. The virtual format allowed residents who could not attend the in-person sessions to participate, ask questions, and provide feedback in real time. Discussion topics included the structural nature of the budget gap, the November 2026 ballot timeline, the comparative merits of each of the three measures, the implications of placing multiple measures on the same ballot, and the next steps the City Council would consider at its June 9, 2026 meeting.

Recurring Resident Themes Across the Town Hall Series
Several themes were raised consistently by residents across all four meetings:
• Visitor impact and fair share: Concern that visitors and day-trippers are not paying their fair share of the cost of the services they generate, and that revenue measures should focus on visitorpaid sources before resident-paid sources. • Wildfire risk and undergrounding: Strong interest in undergrounding utilities, particularly along Laguna Canyon Road and primary evacuation routes, to reduce wildfire risk and improve evacuation safety.
• Spending discipline before new revenue: Questions about whether the City has sufficiently reduced spending and pursued efficiencies before asking voters to consider new taxes. • Parking and traffic: Interest in parking management, enforcement, ACT V lot utilization for employee parking, and addressing traffic congestion on Coast Highway and Laguna Canyon Road.
• Public safety funding: Concern about the long-term funding of Police, Fire, and Marine Safety services, especially in light of anticipated public safety cost growth. • Aging City facilities: Concern about the condition of aging City facilities, including fire stations, the library, and community centers, and the cost of maintaining or replacing them. • City character and visitor balance: Interest in maintaining the City's character and supporting local businesses while addressing the impacts of increasing visitation. 47 48 of 64
Online Community Survey
Twenty-six (26) responses were received via the online community survey between March 23 and May 20, 2026. The online survey is self-selected and not a scientifically valid sample of community opinion; it is intended to capture the views of engaged residents who chose to participate. Responses across the six survey questions are summarized below.
• Most important City issues: Wildfire mitigation and public safety were most frequently cited, followed by traffic congestion (particularly on Coast Highway and Laguna Canyon Road, including the LCAD crosswalk), parking, fiscal management and perceived overspending, beach management and visitor behavior enforcement, sewer infrastructure and utility undergrounding, and the balance between resident quality of life and tourism. • Highest funding priorities: Wildfire mitigation and Fire Department readiness, Police and public safety, sewer and storm drain infrastructure, beaches and marine safety, and ambulance services in light of concerns about the planned hospital closure. Several respondents indicated no new services should be funded until existing costs are reduced first. • Suggestions to improve efficiency or reduce costs: Across-the-board departmental cuts of 5– 10%; reductions to Marine Safety full-time staffing in favor of seasonal lifeguards; reducing City Hall hours or staffing levels; streamlining permitting in Community Development; cancelling or defunding Visit Laguna Beach; using AI and technology for routine services; and expanding volunteer programs.
• Long-term infrastructure ideas: Prioritize fire station replacement and seismic upgrades; accelerate utility undergrounding in residential neighborhoods; sell St. Catherine's property and redirect proceeds; build an overhead pedestrian bridge at LCAD to eliminate the on-demand crosswalk; do not assume ownership of Laguna Canyon Road (viewed by many respondents as a long-term financial liability); and adopt disciplined long-term savings planning for infrastructure replacement.
• Revenue options: A majority of respondents opposed new taxes until cost reductions are demonstrated. Several supported a modest 1-cent sales tax increase if funds are demonstrably used for fire safety and infrastructure. There was strong support for shifting costs to visitors through higher parking fees, trolley fares, and littering fines, and interest in taxing vacant second homes and long-vacant commercial properties.
• Programs to reduce, expand, or re-evaluate: Respondents identified Marine Safety management positions, the Laguna Local trolley, and Visit Laguna Beach tourism marketing as candidates for reduction. They supported expanding beach enforcement (trash, alcohol, smoking), ambulance services, and parking meter modernization (pay-by-plate / pay-by-phone).

Overall tone: A significant share of respondents expressed skepticism toward City decision-making and called for greater fiscal discipline and transparency before considering new revenue. A smaller number were positive about the City's current direction. Common closing themes were "put residents first," "make visitors and external agencies pay for their impacts," and "demonstrate fiscal discipline before asking for more revenue."
Note: The online survey reflects 26 self-selected responses and is not a statistically valid sample. For statistically valid voter sentiment, see the Probolsky Research 2026 Voter Poll Results (Attachment 1). 48 49 of 64
33 How Does Laguna Beach’s TOT Rate Compare to
Other Orange County Cities?
Tax Rate Cities
0% La Habra, Rancho Santa Margarita, Villa Park
8% Costa Mesa, Irvine, La Palma, Laguna Hills, Los Alamitos, Mission Viejo, Westminster 9% Fountain Valley
Aliso Viejo, Brea, Cypress, Dana Point, Fullerton, Huntington Beach, Laguna Niguel, Laguna Woods, Lake Forest, Newport Beach, Orange, Placentia, San Clemente, San Juan Capistrano, Yorba Linda
10%
11% Santa Ana
12% Buena Park, Seal Beach, Stanton, Laguna Beach (not including 2% TMD) 13% Tustin
15% Anaheim (not including 2% TMD), Garden Grove
For Information Purposes Only
Attachment 3
49 50 of 64
City Sales Tax Rate
Seal Beach 9.25%
Fountain Valley 8.75%
Aliso Viejo 7.75%
Costa Mesa 7.75%
Dana Point 7.75%
Huntington Beach 7.75%
Irvine 7.75%
Laguna Beach 7.75%
Newport Beach 7.75%
How Does Laguna Beach Compare to Neighboring Cities
For Information Purposes Only
Attachment 4
50 51 of 64
City Sales Tax Rate
Santa Barbara 9.25%
Carmel by the Sea 9.25%
Monterey 9.25%
Palm Springs 9.25%
Palm Desert 8.75%
Solvang 8.75%
Pismo Beach 8.25%
Dana Point 7.75%
Laguna Beach 7.75%
Newport Beach 7.75%
How Does Laguna Beach Compare to Coastal/Destination Cities? For Information Purposes Only
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CALENDAR OF EVENTS FOR ORANGE COUNTY CITY MEASURES
NOVEMBER 3, 2026 GENERAL ELECTION
For City Clerk Use Only
Shown below is a sequence of events, including statutory deadlines and Registrar of Voters’ administrative deadlines, leading to the General Election on November 3, 2026. This sequence shows the actions a City Council would need to take to place a city measure on the ballot.

The Registrar of Voters’ recommended administrative deadlines will enable City Clerks to establish deadlines for the submittal of filings related to a measure, which provide a reasonable time to prepare the election material, the full 10-day public examination periods for the submitted filings, and sufficient time to resolve a petition for writ of mandate challenging any of the election materials without substantially interfering with the conduct of the election.

It is statutorily permissible for a City Council to order a city measure election up until 88 days before Election Day. If an election is ordered less than 109 days before Election Day, the Registrar of Voters would endeavor to conduct the election as ordered and would recommend the City Clerk set expedited filing deadlines for election materials. Even with such shortened deadlines, there would not be much time left for a court to resolve a legal challenge without impacting the conduct of the election.

All statutory references are to the Elections Code, unless stated otherwise.

July 1, 2026
(E-125)
Jurisdictional boundary changes must occur no later than 125 days before an election and be provided to the Registrar of Voters to be effective for purposes of that election. §12262
July 17, 2026
(E-109)
The Registrar of Voters requests that a City Council by this date adopt a Resolution(s) to order a city measure election to be consolidated with the General Election and to request the election services of the Registrar of Voters. The City must submit the Resolution(s) to the Board of Supervisors with a copy to the Registrar of Voters.

If the City wishes to have the full text of the measure printed in the County Voter Information Guide, the Registrar of Voters requests the City submit the full text by this date.
§§ 9286, 1415, 9222,9295, 9255, 10002, 10201, 10403, 10418, Govt.

Code § 34458
July 31, 2026
(E-95)
Recommended date for filing measure ordinance text, direct arguments, a city attorney impartial analysis and a fiscal impact statement (if applicable). If your Council adopts a Resolution prior to July 31, 2026, adjust the material submission deadline dates accordingly. §§ 9280, 9281, 9282, 9286
Attachment 5
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When filing direct arguments, the parties must provide a list of supporters or opponents to the city measure that will be printed on the ballot. The list must not exceed 125 characters in length including spaces, commas, semicolons, and other characters. § 9170 August 1, 2026
through
August 10, 2026
(E-94 – 85)
Public Review period for the measure ordinance text, impartial analysis, direct arguments, and fiscal impact statement, if applicable.

Measure documents will also be posted on the Registrar of Voters website. During the Public Review period, any voter may seek a writ of mandate or an injunction requiring any of these materials to be amended or deleted. § 9295
August 7, 2026
(E-88)
Statutory deadline for a City Council to request consolidation of a city election with the General Election by submitting a Resolution to the Board of Supervisors with a copy to the Registrar of Voters. §§ 9222, 10403
August 10, 2026
(E-85)
Registrar of Voters will email measure letter designations to cities that have measures on the ballot. § 13116
August 10, 2026
(E-85)
Recommended deadline for filing of rebuttal arguments. Rebuttals must be filed 10 days after the direct arguments. § 9285 August 11, 2026
through
August 20, 2026
(E-84 – 75)
Public Review period for rebuttal arguments. Only Rebuttal Arguments are subject to legal action during this public review period. § 9295 August 12, 2026
(E-83)
Statutory deadline for City Council to submit a resolution to the City Clerk to withdraw a prior city measure order of election. § 9605 August 28, 2026
(E-67)
The Registrar of Voters requests that the Court issue a potential order to change measure ordinance text, impartial analysis, financial impact, and direct and rebuttal arguments by this date to ensure Registrar of Voters can meet election material mailing deadlines. § 9295 September 19, 2026
(E-45)
Statutory deadline for Registrar of Voters to issue ballots and Voter Information Guides to military and overseas voters. § 3105 September 24, 2026
(E-40)
Voter Information Guide mailing begins approximately this date.

Mailing completed by October 13, 2026 (E-21). § 13303(a) October 5, 2026
(E-29)
Ballot mailing to active registered voters begins. All Vote-By-Mail ballots will be issued through the Registrar of Voters. Requests for replacement mail ballots should be forwarded to the Registrar of Voters. §§ 3000.5, 3001, 3014, 4005(a)(8)(A)
October 5, 2026
(E-29)
Ballot drop boxes are open this day through Election Day. § 4005(a)(1)(B)
October 19, 2026
(E-15)
Last day to register to vote for the November 3, 2026 General Election. § 2102
October 20, 2026
through
November 3, 2026
(E-14 – E-0)
Conditional Voter Registration period. During the 14 days prior to Election Day and including Election Day, an individual can go to the office of their county elections official, a satellite office, or to a Vote Center to conditionally register to vote and vote a provisional ballot. § 2170
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October 24, 2026
(E-10)
Beginning 10 days before the day of the election and continuing daily up to Election Day, select Vote Centers are open to the public. § 4005(a)(4)
October 31, 2026
(E-3)
Beginning 3 days before the day of the election and continuing daily up to Election Day, additional Vote Centers are open to the public. § 4005(a)(3)
November 3, 2026
(E-0)
Election Day. All Vote Centers will be open from 7 a.m. to 8 p.m.

Ballots will be centrally tallied at the Registrar of Voters’ office. §§ 1000, 14212
December 3, 2026
(E+30)
Registrar of Voters will certify on or before this date. §§ 15372, 15375 54 55 of 64
City of Laguna Beach
Resident/Non-Resident Analysis
Development Driven by Data
HdL ECONSolutions
120 S. State College Blvd., Ste 200
Brea, CA 92821
www.hdlcompanies.com
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www.hdlcompanies.com • 714.879.5000
June 2025 City of Laguna Beach – RvNR Analysis 1
Overview
Incorporated in 1927, Laguna Beach is a charming beach community located along the Pacific Ocean in Orange County, California. It is bordered by the City of Newport Beach to the west, City of Aliso Viejo and City of Laguna Woods to the east, and the City of Irvine to the north. The city one of many beach front cities along Pacific Coast Highway. It is also easily accessible from California State Route 133. Known for its stunning coastal scenery, vibrant arts scene, and commitment to environmental preservation, Laguna Beach offers a unique blend of natural beauty and cultural richness.

The City of Laguna Beach is a renowned destination for food lovers, offering a variety of famous casual dining restaurants that provide unique dining experiences, including The Cliff, Starfish Asian Coastal Cuisine, and Nick's. For those seeking fine dining, Laguna Beach boasts exceptional options like Las Brisas, Selanne Steak Tavern, and Sapphire Cellar Craft Cook, which not only serve exquisite cuisines but also stand as local landmarks. Additionally, the city features a variety of independently owned quick-service restaurants, as well as well-known chain establishments like Jack in the Box, Domino’s Pizza, and Starbucks.

The walkable downtown area located across from the main beach is the heart of Laguna Beach. This vibrant area is filled with creative boutiques, bars, restaurants, recreational parks, and facilities for a variety of interests. Laguna Beach is also known for its air-oriented events and festivals, which draw visitors on a national level. Some of the annual events, include the Pageant of the Masters, Festival of Arts, Sawdust Art Festival, and Art-A-Fair. Below is a summary of the market analytics, for the City of Laguna Beach and trade area within a 15-minute drive.

City of Laguna Beach 15-Minute Drive Time
Population 22,921 100,986
Households 10,716 44,100
Average HH Income 238,684 207,903
Daytime Population 26,529 95,669
There are 1,865 established businesses in the City of Laguna Beach that employ approximately 10,209 employees in specialized industries such as Retail Trade, Health Care & Social Assistance and Accommodation & Food Services (Source: SiteSeer Demographics). The largest industry category in the City of Laguna Beach is Retail Trade, providing employment to approximately 15.0% of the total workforce within the city.

Legend
City of Laguna Beach
Laguna Beach- Broadway
15-minute drive time
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www.hdlcompanies.com • 714.879.5000
June 2025 City of Laguna Beach – RvNR Analysis 2
Non-Resident Spending Summary
The City has requested an estimate of the approximate amount of sales and use tax revenue generated by residents versus non-residents. Hereafter, individuals and businesses residing and located within the city will collectively be referred to as residents. While individuals and businesses residing and located outside of the city will collectively be referred to as non-residents.

The table below summarizes the results of the analysis based on actual sales tax revenue in 2024 (Calendar Year) and TUT revenue estimate for 2024-2025 (Fiscal Year), it also reflects the percentages of sales tax estimated from non-residents for the seven major industry groups. The 1% Bradley Burns tax is based on where the sale is negotiated or the place where the order is taken, while Transactions and Use Taxes (TUT) are applied in accordance with where purchased goods are delivered or placed into use.

In summary, HdL companies estimates that 55.2% of the 1% Bradley Burns Sales Tax in 2024 is generated from non-residents, while the potential percentage of a 1% TUT paid by non-residents is estimated at 37.1%.

Economic Segment
Bradley Burns 1%
Sales & Use Tax
Transactions & Use
Tax (TUT)
Autos & Transportation 62.7% 2.5%
Building & Construction 29.3% 9.7%
Business & Industry 47.3% 6.4%
Food & Drugs 25.3% 25.3%
Fuel & Service Stations 19.0% 17.6%
General Consumer Goods 35.9% 24.8%
Restaurants & Hotels 74.3% 66.3%
Estimated Average Non-Resident
Generated Revenue 55.2% 37.1%
Estimated % of Sales Tax Revenue Generated from Non-Residents The figures shown above were obtained utilizing a variety of methodologies customized to each economic segment. These methodologies consider the mix of businesses located in the City, per capita sales within the City of Laguna Beach versus the per capita sales across Orange County, as well as factoring average income population and trade area daytime- population for the designated trade areas previously described as a percentage of those categories within the City. The findings for each economic segment that led to the conclusions are listed below.
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June 2025 City of Laguna Beach – RvNR Analysis 3
Autos & Transportation
The Autos & Transportation sector accounted for 4.8% of the Bradley Burns Sales Tax revenue for the City of Laguna Beach. When comparing per capita sales in 2024, the City of Laguna Beach produced lower per capita sales level than Orange County. Without many autos related retailers in the city, non-residents are not purchasing vehicles as well as auto-related items in large quantities within the City of Laguna Beach. This is also supported by a review of the Consumer Demand & Market Supply Assessment as the Autos & Transportation segment reflects that the businesses located within the City of Laguna Beach supplied less than consumer demand. The combined information further suggests that the car dealerships, automotive services, and automotive retailers located within the city’s limits are not providing for non-residents and are not meeting the consumer demand, in a meaningful way. An estimated 62.7% of the sector’s 1% Bradley Bruns Sales Tax revenue is generated from non-residents.

It is also important to keep in mind that most of the TUT revenue is generated by residents and local businesses when they purchase and register a vehicle at an address within the City of Laguna Beach. With that, nonresident purchases of vehicles in Laguna Beach are not subject to the TUT. However, TUT would apply to sales of auto supplies, repairs, tires, and auto related items which would include transactions to non-residents. The estimated percentage of a TUT revenue in this sector generated by non-residents is estimated much lower at

2.5%.

Building & Construction (B&C)/ Business& Industry (B&I) The Building & Construction and Business & Industry sectorstogether generated 6.7% of city’stotal 1% Bradley Burns Sales Tax in 2024. Most sales within these sectors rely on Business-to-Business transactions. The methodology used to estimate revenue from non-residents relies on adjustments to both segments’ top sales tax producers, which were used as a relative sampling of sales tax generation within these industry groups. The top 10 businesses in the Building & Construction(B&C) group accounted for 99% of the revenue generated by the B&C sector in 2024, while 59% of the revenue generated in the Business & Industry (B&I) group was attributed to its top 20 sales tax producers.

The City of Laguna Beach produced lower per capita sales than Orange County’s per capital sales level in both the Building & Construction(B&C) and Business & Industry(B&I) sectors, similar to autos this is due to the small number of retailers in this segment. A review of the Consumer Demand & Market Supply Assessment reflects that the establishments in both B&C and B&I segments supplied less than consumer demand. The combined information suggests that the businesses in this sector within the City of Laguna Beach are not providing for non-residents and are not meeting the consumer demand.

The estimated 1% Bradley Burns Tax for the Building & Construction and Business & Industry sectors generated from non-residents is 29.3% and 47.3% respectively. Applying the same methodology used for the 1% Bradley Burns Sales Tax estimate to a potential TUT for B&C & B&I sectors, it is estimated that 9.7% and 6.4% of the revenue would be generated from non-residents, respectively. 59 of 64
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June 2025 City of Laguna Beach – RvNR Analysis 4
Food & Drugs
The Food & Drugs sectors accounted for 6.2% of the Bradley Burns Sales Tax revenue for the City of Laguna Beach. Analysis of the Food & Drugs segment indicates that the City of Laguna Beach produced higher per capita sales than Orange County’s per capita sales level at grocery and drug stores. However, a review of the Consumer Demand & Market Supply Assessment and the Grocery & Drugs segment reflects that the establishments in this business group within the City of Laguna Beach supplied less than consumer demand.

The combined information suggests that businesses are providing for non residents but not enough to meet the consumer demand entirely.

It should be noted that generally only about 20% to 30% of grocery store sales are taxable and the receipts in this group are generally very close to 1:1 ratio between the Bradley Burns and a TUT tax. Therefore, an estimated 25.3% of the sector’s revenue is generated from non-residents for the Bradley Burns Sales Tax and the estimated percentage for a potential TUT generated from non-residents is 25.3%.

Fuel & Service Stations
The Fuel & Service Station (F&SS) sector generated 4.0% of the Bradley Burns Sales Tax revenue for the City of Laguna Beach and the city produced lower per capita sales than Orange County’s per capita sales level. In addition, reviewing the Consumer Demand & Market Supply Assessment, the Fuel & Service Stations segment reflects that gasoline stations supplied less than consumer demand for the city. The combined information suggests that non-residents are not purchasing auto fuel in large quantities from the service stations located within the city’s limits in Laguna Beach and gas stations located within the city’s boundaries are not providing enough to meet the consumer demand. The estimated percentage of non-resident sales for the 1% Bradley Burns Sales Tax is 19.0% and the estimated percentage for any potential TUT from non-residents is 17.6%.

General Consumer Goods
The General Consumer Goods sector accounted for a substantial 28.0% of the Bradley Burns Sales Tax revenue for the City of Laguna Beach. Within this sector, Women's Apparel contributes 10%, Art/Gift Novelty Stores lead with 27%, Jewelry Stores follow at 20%, and Home Furnishings provide 17%. Collectively, these categories generated 74% of the General Consumer Goods economic sector.

The city produced significantly higher per capita sales than Orange County’s per capita sales level, suggesting that non-residents are purchasing general consumer goods from retail businesses located within the city boundaries of Laguna Beach. This is supported when reviewing the General Consumer Goods segment of the Consumer Demand & Market Supply Assessment as it reflects that the businesses located within the city’s boundaries supplied more than consumer demand. The combined information suggests that the retailers located within the City of Laguna Beach are providing for non-residents and are meeting the consumer demand. An estimated 35.9% of the sectors 1% Bradley Burns Sales Tax revenue is generated from nonresidents. Applying the same methodology used forthe 1% Bradley Burns Sales Tax estimate to a potential TUT, it is estimated that 24.8% of the revenue would be generated from non-residents from a potential TUT. 60 of 64
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June 2025 City of Laguna Beach – RvNR Analysis 5
Restaurants & Hotels
The Restaurants & Hotels sector accounted for a significant 49.9%, close to half of the Bradley Burns Sales Tax revenue for the City of Laguna Beach. Within this sector, Causal Dining category contributed 43%, Hotel/Motel category generated 29% and Fine Dining category contributed 16%. Collectively, these categories generated 88% of the sales tax revenues for the Restaurants & Hotels sector. This is not surprising considering that Laguna Beach is a highly sought after tourist and destination location.

An analysis of the Restaurants & Hotels sector reveals that the city achieved significantly higher per capita sales levels compared to Orange County, approximately three times the county's per capita sales level. This suggests that non-residents stay and dine at the businesses located within the city’s boundaries.

An analysis of the Restaurants & Hotels segment in the Consumer Demand & Market Supply Assessment indicates that businesses located within the city’s boundaries supplied more than consumer demand. The combined information suggests that business establishments located in the City of Laguna Beach are focused on providing for non-residents and are meeting the consumer demand. An estimated 74.3% of the sectors 1% Bradley Burns Sales Tax revenue is generated from non-residents. Applying the same methodology used for the 1% Bradley Burns Sales Tax estimate to a potential TUT, it is estimated that 66.3% of the revenue would be generated from non-residents from a potential TUT.

Conclusion
Local tax is the general term for sales and use taxes imposed under the Bradley Burns Uniform Sales and Use Tax Law. Please keep in mind that while per capita sales comparison is one of the methods that is being used to measure the ‘the City vs County’ trends, HdL also uses a methodology that is based on characteristics unique to each economic segment as well as examining the demographic data and the Consumer Demand and Market Supply Assessment for a drive-time trade area.

Laguna Beach's blend of stunning landscapes, vibrant art scene, and diverse outdoor activities make it a prime destination, enticing visitors to explore, relax, and enjoy its activities and culinary delights. Nonresidents living around the city or visiting Laguna Beach are producing and increasing sales tax revenue in all categories, particularly in Food & Drugs, General Consumer Goods and Restaurants & Hotels where the city’s per capita sales levels are higher than Orange County’s per capita sales levels. In conclusion, the estimated percentage for sales tax revenue generated by non-residents in the City of Laguna Beach is 55.2% for the 1% Bradley Burns that is based on actual sales tax revenue in 2024 and a potential TUT generated by nonresidents based upon a revenue estimate for 2024-2025 is estimated at 37.1%. 61 of 64

City of Laguna Beach
Estimate for Transactions Tax/District Add-on Sales Tax – April 2025 The following district tax estimate was devloped using comparisons of active voter approved transactions tax overrides of comparable juridictions within the region. Per-capita figures at the countywide, statewide and regional levels were all considered when projecting and adjusting certain categories.

FY 2026-27 Projection
Major Industry Group Local Tax 1.00%
Autos/Transportation $199,000 $829,000
Building & Construction $225,000 $260,000
Business & Industry $215,000 $630,000
Food & Drugs $347,000 $347,000
Fuel/Service Stations $238,000 $243,000
General Consumer Goods $1,330,000 $2,280,000
Restaurants/Hotels $3,130,000 $3,146,000
Transfers & Unidentified $22,000 $87,000
State & County Pools $1,083,000
Total $6,789,000 $7,822,000
District Tax / Local Tax Ratio 115%
NOTE – Transactions tax estimate is based on the Bradley-Burns Local (1%) projection for FY 2026-27 prepared Jan. 2025. The above figure is before administration fees.

Functional Differences: Bradley Burns (1%) local tax vs Voter Approved District Tax Traditionally, local tax is allocated based on an origin methodology where tax is allocated based on the place-of-sale. In other words, where the business is located. Voter approved district taxes are allocated on a destination methodology where tax generally follows the buyer. Traditional brick & mortar retailers, restaurants, and service stations will continue to generate a proportional amount of district tax compared to their normal local tax reporting. Below highlights the most common and notable differences in respect to the two tax sources.

Local Tax District Tax
Vehicles Dealership (place-of-sale) District of vehicle registration Delivered Materials/Equipment Sales office, warehouse, county pool Destination of use (ship to location)
Online Sales Ship from location (fulfillment center
and/or county pool)
Destination of use (ship to
location)
Construction Contracts County Pool District of Jobsite location These functional differences create variations dependent on a jurisdiction’s tax base. An agency without auto dealerships typically experiences an influx of district tax revenue from that segment. Similarly, an agency heavy in industrial or warehousing sectors is likely shipping more products outside of the city, resulting in less district tax compared to their local tax revenues. These factors are all considered in the above estimate. 62 of 64
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