RESOLUTION NO. 26.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, ADOPTING THE ANNUAL
CITY BUDGET FOR THE 2026-27 FISCAL YEAR
The City Council of the City of Laguna Beach does hereby RESOLVE and ORDER as follows:
SECTION 1. The budget for the City of Laguna Beach for 2026-27 Fiscal Year as submitted to the City Council on May 8, 2026, is hereby adopted with the modifications delineated in Exhibits A, B, and C, which are attached to this Resolution and made a part hereof; and SECTION 2. All appropriations in the Capital Improvement Budget, Wildfire Mitigation and Fire Safety Fund and Assessment Districts for projects currently underway and remaining unexpended as of June 30, 2026, are hereby appropriated to the 2026-27 Fiscal Year.
ADOPTED this 23rd day of June, 2026.
Mark Orgill, Mayor
ATTEST:
Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on June 23, 2026, by the following vote:
AYES: COUNCILMEMBER(S):
NOES: COUNCILMEMBER(S):
ABSENT: COUNCILMEMBER(S):
ABSTAIN: COUNCILMEMBER(S):
City Clerk of the City of Laguna Beach, CA
Attachment 1
9 E;+,%,7$
MODIFICATIONS TO THE FISCAL YEAR 2026-27 BUDGET
GENERAL FUND (110/112)
1. Reduce revenues and expenditures by $517,300 to reallocate items to new Solid Waste Special Revenue Fund.
2. Revise the authorized positions in the City’s budget to reflect:
a. Funding one additional limited term Associate Planner position. (This change does not have a budgetary impact because the original proposed budget inadvertently included the cost of 2 limited term positions.)
b. Elimination of the Building Official position. (This change does not have a budgetary impact because the funding for the position was offset by salary savings in the original proposed budget to present it as a “frozen” position.)
c. Appropriate $315,500 to fund the Assistant City Manager position, which was “frozen” in the original proposed budget.
d. Reduce expenditures by $122,800 to eliminate the City Arborist position. e. Appropriate $122,800 to fund an Assistant Planner position.
3. Appropriate $108,000 in ongoing funding to reallocate a Community Services Officer I position from the Parking Fund to the General Fund. This position will be repurposed to provide drone operator services.
4. Appropriate $15,000 in ongoing funding for City’s share of reimbursable expenses pursuant to housing agreement with former City Manager.
5. Appropriate $60,000 in ongoing funding for California Employees’ Retirement System’s (CalPERS) retiree replacement benefit program.
6. Increase transfer from the Capital Improvement Fund of $367,000 to fund the additional appropriations requested and maintain the 20% contingency reserve.
CAPITAL IMPROVEMENT FUND (116/616)
7. Appropriate an additional transfer of $367,000 from the Capital Improvement Fund to the General Fund to fund the additional appropriations requested and maintain the 20% contingency reserve.
8. Appropriate a transfer of $300,000 from the Capital Improvement Fund to the Housing Fund to fund future affordable housing initiatives.
10 PARKING FUND (118/618)
9. Decrease appropriations by $108,000 to reallocate a Community Services Officer I position from the Parking Fund to the General Fund. This position will be repurposed to provide drone operator services.
10. Appropriate an additional transfer from the Parking Fund to the Transit Fund of $391,000 to reflect elimination of passenger fare revenue in the Transit Fund.
VEHICLE REPLACEMENT FUND (128)
11. Appropriate $30,000 in one-time funding for conversion costs related to new Marine Safety vehicle purchased during Fiscal Year 2025-26.
12. Reduce revenues by $500,000 to reflect underfunding to the Vehicle Replacement Fund included in the General Fund’s original proposed budget on May 12, 2026.
STREET LIGHTING & UTILITY FUND (134/634)
13. Increase revenues by $10,100 to reflect one-time revenue for the payment from Southern California Gas Company pursuant to the license agreement approved by the City Council on June 9, 2026.
SOUTH LAGUNA FUND (136/636)
14. Reduce estimated parking meter revenue for the South Laguna area by $75,000 to reflect the delay in implementing paid metered parking pending resolution of appeal filed with the California Coastal Commission.
15. Increase miscellaneous revenues by $20,000 to revise the original estimated revenues received from the Aliso Creek Concession Agreement. (Total annual revenue received is approximately $70,000).
WILDFIRE MITIGATION AND FIRE SAFETY FUND (141/641)
16. Appropriate $265,000 in one-time costs to purchase 2 additional speakers and sirens for the Outdoor Warning System program.
17. Appropriate $5,000 in one-time costs for videographer services.
18. Appropriate $25,000 in on-going costs for emergency preparedness training and public workshops.
11 HOUSING FUND (146)
19. Include a transfer from the Capital Improvement Fund of $300,000 to fund future affordable housing initiatives.
SOLID WASTE SPECIAL REVENUE FUND (200)
20. Increase revenues by $517,300 to reflect C&R Regulatory Fee and recycling grant revenues anticipated next year.
21. Increase expenditures by $517,300 to fund solid waste programs.
TRANSIT FUND (310)
22. Decrease revenues by $391,000 to eliminate passenger fare revenue for on demand transit service.
23. Increase transfer from the Parking Fund to the Transit Fund by $391,000 balance the budget due to reduced revenues.
12 BEGINNING AND ENDING FUND BALANCE
Projected
Beginning Operating CIP Transfers Transfers Ending
Balance Revenues Expenditures Expenditures In Out Balance 7/1/2026 (1) FY 2026/27 FY 2026/27 FY 2026/27 FY 2026/27 FY 2026/27 6/30/2027 General Fund (#110/112)
Unassigned/Available for Appropriations $ 134,895 $ 99,865,600 $ (101,037,800) $ - $ 1,790,200 $ (750,000) (3) $ 2,895 Restricted -Contributions for Specific Purpose 49,417 - - - - - 49,417 Non-Spendable-Inventory 100,372 - - - - - 100,372
Non-Spendable-Unrealized Gain (Loss) on Investment (1,443,735) - - - - - (1,443,735) Reserve - Contingency (20%) 18,500,000 - - - 500,000 - 19,000,000 Total General Fund 17,340,949 99,865,600 (101,037,800) - 2,290,200 (10) 17,708,949 (750,000) Library Impact Fees Fund (#111)
Committed for Library Operations and Improvements 84,680 - - - - - 84,680 Measure LL Fund (#113)
Unassigned/Available for Appropriations 1,203,292 3,458,500 (4,198,600) - - (200,000) (7) 263,192 Non-Spendable-Prepaids 338,620 - - - - - 338,620
Total Measure LL Fund 1,541,912 3,458,500 (4,198,600) - - (200,000) 601,812 Open Space Fund (#114)
Unassigned/Available for Appropriations 986,044 - - - - - 986,044 Capital Improvement Fund (#116/616)
Unassigned/Available for Appropriations 8,555,999 8,305,000 (177,800) (7,150,000) 132,560 (5) (6) (7,190,200) (7)(9)(10)(11) 2,475,559 Parking Authority Fund (#118/618)
Unassigned/Available for Appropriations 3,024,952 11,883,200 (7,675,500) (1,400,000) 1,040 (4) (2,391,000) (8) 3,442,692 Parking In-Lieu Fees Fund (#120)
Committed for Parking Projects 1,040 - - - - (1,040) (4) - Park In-Lieu Fees Fund (#122)
Committed for Park and Recreation Facilities 47,060 - - - - (47,060) (5) - Art In-Lieu Fees Fund (#123)
Committed for Art in Public Places 392,204 - - - - - 392,204 Drainage Fees Fund (#124)
Committed for Drainage projects 85,500 - - - - (85,500) (6) - Housing In-Lieu Fees Fund (#127)
Committed for Affordable Housing 777,712 - - - - - 777,712 Gas Tax Fund (#132/632)
Restricted-Street Rehabilitation and Maintenance 967,106 711,700 - (680,000) - - 998,806 Street Lighting & Utility Fund (#134/634)
Restricted for Street Lighting Projects 647,305 2,696,000 (612,500) (350,000) - (1,000,000) (7) 1,380,805 Non-Spendable-Prepaids 2,388,177 - - - - - 2,388,177
Total Street Lighting & Utility Fund 3,035,482 2,696,000 (612,500) (350,000) - (1,000,000) 3,768,982 Federal Asset Forfeiture Fund (#135)
Restricted for Public Safety Programs 63,711 - - - - - 63,711 South Laguna Fund (#136/636)
Assigned for South Laguna 1,615,000 11,980,707 (4,320,800) - - - 9,274,907 Wastewater Fund (#137/637)
Unrestricted Net Position - Available for Appropriation (2) (7,493,261) 12,349,700 (10,004,000) (1,500,000) - - (6,647,561) Noncurrent Liabilities (786,758) - - - - - (786,758)
Non-Spendable-Investment in Capital Assets - 39,765,829 - - - - 39,765,829 Total Wastewater Fund 31,485,810 12,349,700 (10,004,000) (1,500,000) - - 32,331,510 State Asset Forfeiture Fund (#138)
Restricted for Public Safety Programs 51,439 - - - - - 51,439 Disaster Contingency Fund (#140)
Committed for Disaster Contingency 7,279,626 142,500 - - - - 7,422,126 Wildfire Mitigation and Fire Safety Fund (#141/641)
Unassigned - Available for Appropriations 1,332,447 - (1,608,600) - 2,200,000 (7) - 1,923,847 Nonspendable-Prepaids 1,777,215 - - - - - 1,777,215
Total Wildfire Mitigation and Fire Safety Fund 3,109,662 - (1,608,600) - 2,200,000 - 3,701,062 Animal Shelter Donations Fund (#142)
Restricted-Animal Shelter 1,522,850 - - - - - 1,522,850 Air Quality Management District (AQMD) Fund (#143)
Restricted-Mobile Source Emissions Reduction Programs 114,038 30,000 - - - - 144,038 Housing Fund (#146)
Restricted-Affordable Housing Programs 1,379,000 110,000 - - 300,000 (11) - 1,789,000 (;+,%,7%
13 BEGINNING AND ENDING FUND BALANCE
Beginning Operating CIP Transfers Transfers Ending
Balance Revenues Expenditures Expenditures In Out Balance 7/1/2026 (1) FY 2026/27 FY 2026/27 FY 2026/27 FY 2026/27 FY 2026/27 6/30/2027 National Opioid Settlement Fund (#148)
Restricted-Opioid Abatement Programs 76,819 - - - - - 76,819 Cultural Environmental Stewardship Fund (#149)
Restricted-Cultural Environmental Stewardship Programs 533,027 - (550,000) - 750,000 (3) - 733,027 Solid Waste Fund (#200)
Restricted-Solid Waste Programs - 517,300 (517,300) - - - - Measure M Fund (#201/601)
Restricted-Streets and Roads Capital Projects - 641,800 - (615,000) - - 26,800 Road Maintenance and Rehabilitation Account
(RMRA) Fund (#202/602)
Restricted-Streets and Roads Capital Projects 2,116 665,000 - (645,000) - - 22,116 Senior Mobility Transportation Fund (#203)
Restricted-Senior Mobility Program - 53,255 - - - (53,255) - Transit Fund (#310)
Unrestricted Net Position - Available for Appropriation 1,426,100 2,983,700 (6,854,055) - 2,444,255 (8) - - Non-Spendable-Noncurrent Receivables 1,650,000 - - - - - 1,650,000 Non-Spendable-Investment in Capital Assets 1,105,726 - - - - - 1,105,726 Total Transit Fund 4,181,826 2,983,700 (6,854,055) - 2,444,255 - 2,755,726 Insurance and Benefits Fund (#126)
Unrestricted Net Position-Available for Appropriation (4,008,393) 18,048,000 (15,567,700) - 3,600,000 (9) - 2,071,907 Non-Spendable-Notes Receivable 940,590 - - - - - 940,590 Non-Spendable-Property Held for Investment 797,500 - - - - - 797,500 Total Employee Benefits Fund (2,270,303) 18,048,000 (15,567,700) - 3,600,000 - 3,809,997 Vehicle Replacement Fund (#128)
Unrestricted Net Position - Available 2,141,800 10,992,827 (4,948,000) - - - 8,186,627 Non-Spendable-Notes Receivable 859,555 - - - - - 859,555 Non-Spendable-Investment in Capital Assets 6,622,379 - - - - - 6,622,379 Total Fleet Maintenance Fund 18,474,761 2,141,800 (4,948,000) - - - 15,668,561 ALL FUNDS - TOTAL $ 114,825,729 $ 166,218,055 $ (158,072,655) $ (12,340,000) $ 11,718,055 $ (11,718,055) $ 110,631,129 Notes:
(1) - Includes appropriations approved by the City Council through June 9, 2026. (2) - The City funds Wastewater capital projects with I-Bank loans. (3) - Annual funding per the Laguna Beach Tourism Market District (LBTMD) Management District Plan. (4) - Funding for parking facilities.
(5) - Funding for Village Green Park Playground Renovation Project (C2301). (6) - Funding for Storm Drain Bolsa Way St. Anns Project (C1708). (7) - Funding for the Wildfire Mitigation & Fire Safety Fund from the Capital Improvement Fund ($1,000,000); Street Lighting & Utility Fund ($1,000,000); and Measure LL Fund ($200,000). (8) - Funding for the City's transit programs from the Parking Fund ($2,391,000) and the Senior Mobility Transportation Fund ($53,255). (9) - Funding from the Capital Improvement Fund to replenish reserves. (10) - Funding from the Capital Improvement Fund to balance the General Fund's operating budget ($1,790,200) and increase the City's General Fund Contingency Reserve to maintain the 20% requirement established by the City Council ($500,000). (11) - Funding from the Capital Improvement Fund to set aside to fund affordable housing programs or projects in the future. 14 Proposed
Fiscal Year
Department/Division Fund Org Obj Description 2026-27
City Manager
Information Technology 110 1101205C 80010 (R) Citywide PC Replacement $ 300,000 City Manager 300,000
Fire Department
Fire Operations 110 1102401C 80020 (R) Fire Hose Nozzles Replacements 75,000 Fire Department 75,000
Marine Safety
Marine Safety 110 1102601C 80020 (R) 2 Stryker Autopulse Machines 45,000 Marine Safety 110 1102601C 80020 (R) Main Lifeguard Tower Repairs 30,000 Marine Safety 75,000
Total General Fund 450,000
South Laguna
Marine Safety 136 1362603C 80020 (A) Beach Observation Camera 30,000 Total South Laguna 30,000
Total Request for Capital Outlay $ 480,000
Notes:
(A) = Additional Equipment (New Equipment)
(R) = Replacement Equipment
City of Laguna Beach
Capital Outlay Requests Budget
EXHIBIT C
15 Proposed
Fiscal Year
Division Fund Division No. Obj Description 2026-27
Community Development
Building Safety 128 4104 80015 (R) Vehicle $ 40,000
Building Safety 128 4104 80015 (R) Vehicle 40,000
Community Development 80,000
Marine Safety
Marine Safety 128 2601 80015 (R) Ford Lightening 125,000 Marine Safety 128 2601 80015 (R) Polaris Ranger XP 50,000 Marine Safety 128 2601 80015 (R) Polaris Ranger XP 30,000 Marine Safety 205,000
Police
Support Services 128 2101 80015 (R) Golf cart 30,000
Field & Investigative Services 128 2102 80015 (R) Hyundai Ioniq (#875) 42,000 Field & Investigative Services 128 2102 80015 (R) Chevrolet Colorado (R1) 83,000 Field & Investigative Services 128 2102 80015 (R) Chevrolet Colorado(R2) 83,000 Field & Investigative Services 128 2102 80015 (R) Chevrolet Traverse (#822) 75,000 Police 313,000
Public Works
Buildings & Facilities 128 3106 80015 (R) Ford Lightning 90,000 Buildings & Facilities 128 3106 80015 (R) Ford Lightning 90,000 Street Maintenance 128 3108 80015 (R) Ford Lightning 90,000 Landscape Maintenance 128 3112 80015 (R) Dump Truck 450,000 Landscape Maintenance 128 3112 80015 (R) Ford Lightning 90,000 Landscape Maintenance 128 3112 80015 (N) Utility Truck 50,000 Wastewater 128 3132 80015 (R) FRHT Aquatech 650,000
Wastewater 128 3132 80015 (R) Rivian 100,000
Wastewater 128 3132 80015 (R) Rivian 100,000
Wastewater 128 3132 80015 (R) Ford Lightning 90,000
Wastewater 128 3132 80015 (R) Vactor 650,000
Public Works 2,450,000
Transit & Community Services
Parking & Sign Maintenance 128 3657 80015 (R) Rivian 100,000 Transit Administration 128 3651 80015 (R) Four Trolleys 1,800,000 Transit & Community Svcs 1,900,000
Total Request for Vehicles $ 4,948,000
Notes:
(R) = Replacement Equipment
City of Laguna Beach
Vehicle Replacement Requests Budget
16 Proposed
Fiscal Year Ongoing
Department/Division Org Obj Description 2026-27 Costs
City Manager
Information Technology 6161205C 80010 (R) Replacement of Phone System $ 125,000 $ - Information Technology 6161205C 80010 (R) Internet Circuit Upgrades 20,000 - Information Technology 6161205C 80010 (R) Switch Replacements (PW, MS, and Corp Yard) 200,000 - City Manager 345,000 -
Police Department
Support Services 6162101C 80020 (R) Upgrade 40 Flock Safety Cameras 258,750 225,000 Field & Investigative Services 6162102C 80020 (R) Replace 2 Radar Message Boards 38,250 - Police Department 297,000 225,000
Marine Safety
Marine Safety 6162601C 80015 (R) UTV Side-By-Side 30,000 - Marine Safety 30,000 -
Public Works
Fleet Maintenance 6163104C 80015 (R) Replace Portable Vehicle Lift Set (4 lifts) 60,000 - Fleet Maintenance 6163104C 80020 Air Conditioning Recovery Machine 18,000 - Public Works 78,000 -
Total Request for Capital Outlay $ 750,000 $ 225,000
Notes:
(1) = These items are included in the "Citywide Capital Outlay Requests" project funded in the Capital Improvement Fund. (A) = Additional Equipment (New Equipment)
(R) = Replacement Equipment
City of Laguna Beach
Citywide Capital Outlay Requests - Fiscal Year 2026-27 (1) Capital Improvement Fund
17