RESOLUTION NO. 26.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, TO RESTRICT FUNDING IN
THE DISASTER CONTINGENCY FUND, TRANSFER
TRANSIENT OCCUPANCY TAX REVENUE IN EXCESS OF
BUDGET ESTIMATES TO THE HOUSING FUND, AND
TRANSFER MID-YEAR BUDGET SAVINGS UP TO $300,000 TO
THE OPEN SPACE FUND
WHEREAS, the City Council recognizes the importance of maintaining adequate funds for the Housing Fund, the Open Space Fund and the Disaster Contingency Fund; and WHEREAS, prudent financial planning and responsible budgeting are crucial in ensuring the City's fiscal stability and resilience; and
WHEREAS, the City Council desires to allocate City revenues in a manner that balances the needs of the community and prior City Council actions.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:
SECTION 1. FUNDING RESTRICTIONS – DISASTER CONTINGENCY FUND:
1. The Disaster Contingency Fund is to be used exclusively for (a) the repair of public facilities and (b) the emergency protection of public and private property and lives during natural or manmade disasters, including but not limited to landslides, mudslides, fires, floods, earthquakes, tsunamis, nuclear accidents, terrorist attacks, or armed conflict. Through the annual budget process, the City Council shall appropriate money to the Disaster Contingency Fund. Any expenditure from the Disaster Contingency Fund shall require four affirmative votes of the Councilmembers. Within 36 months following the allocation of money from the Disaster Contingency Fund, the City Council shall use its best efforts to replenish the Disaster Contingency Fund to at least its preexisting amount, in accordance with and subject to the annual budget process.
2. It is the aspirational goal of the City Council that the amount of the Disaster Contingency Fund ultimately be equal to ten percent (10%) of the General Fund budget of the City in each fiscal year.
Attachment 2
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3. The City Council intends to use its best efforts to appropriate $1.5 million per fiscal year to the Disaster Contingency Fund until the amount in the Disaster Contingency Fund reaches ten percent (10%) of the General Fund.
SECTION 2. TRANSIENT OCCUPANCY TAX REVENUE TRANSFER TO THE HOUSING FUND:
The City Council intends that if the actual property tax growth surpasses the proposed budget estimate for property tax growth, then up to $500,000 of transient occupancy tax revenue shall be transferred to the Housing Fund, limited by the amount of property tax received over budget estimates or $500,000. The consideration for such transfer shall occur in July, following the release of growth of property assessed valuations from the Orange County Assessor.
SECTION 3. TRANSIENT OCCUPANCY TAX REVENUE FROM SHORT-TERM LODGING:
The City Council has determined that all transient occupancy tax revenue from short-term lodging units approved on or after July 2021 shall be directed and deposited into the Housing Fund.
SECTION 4. OPEN SPACE FUND MID-YEAR ALLOCATION:
The City Council shall consider the transfer of the amount of $300,000 from the General Fund to the Open Space Fund as part of the mid-year financial update. Any transferred funds shall be expended for the future purchase and maintenance of projects and programs that are designed to protect and enhance open space, including coastal resources.
SECTION 5. IMPLEMENTATION AND REVIEW:
The City Manager is hereby authorized to take any necessary actions to implement and enforce the provisions of this Resolution. The City Council shall review the effectiveness and impact of these funding restrictions and allocations on an annual basis and may make additional adjustments as deemed necessary or appropriate.
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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: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk, City of Laguna Beach, CA
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