Laguna Woods City Council
May 28, 2025

CITY of LAGUNA WOODS

CITY COUNCIL
AGENDA
Adjourned Regular Meeting
Wednesday, May 28, 2025
2:00 p.m.

Laguna Woods City Hall
24264 El Toro Road
Laguna Woods, California 92637
Annie McCary
Mayor Pro Tem
Cynthia Conners
Councilmember
Shari L. Horne
Mayor
Pearl Lee
Councilmember
Carol Moore
Councilmember
Welcome to a meeting of the Laguna Woods City Council!
This meeting may be recorded, televised, and made publicly available.

Public Comments/Testimony: The City accepts public comments/testimony in-person and in writing. For more information, please refer to page three of this agenda.

Americans with Disabilities Act (ADA): It is the intention of the City to comply with the ADA. If you need assistance to participate in this meeting, please contact either the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535 or the California Relay Service at (800) 735-2929/TTY (800) 735-2922. The City requests at least two business days’ notice in order to effectively facilitate the provision of reasonable accommodations.

REGULAR MEETING SCHEDULE
The Laguna Woods City Council meets regularly on the third Wednesday of each month at 2 p.m.

AGENDA POSTING AND AVAILABILITY
Regular and Adjourned Regular Meetings: Pursuant to California Government Code Section 54954.2 of the Ralph M. Brown Act, the City of Laguna Woods posts agendas at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, California 92637; on the City’s website (www.cityoflagunawoods.org); and, at other locations designated by Resolution No. 24-08, at least 72 hours in advance of regular and adjourned regular meetings. Agendas and agenda materials are available at Laguna Woods City Hall during normal business hours and on the City’s website. Printed copies of agendas and agenda materials are provided at no charge in advance of meetings. After meetings have occurred, a per page fee is charged for printed copies.

Special and Emergency Meetings: Agenda posting and availability for special and emergency meetings is conducted pursuant to all applicable provisions of California Government Code (Ralph M. Brown Act).

AGENDA DISTRIBUTION LISTS
Electronic Distribution: The City of Laguna Woods provides notification of agenda posting and availability via email. To sign up for email notifications, please visit www.cityoflagunawoods.org/email-notifications, email [email protected], or contact the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535. Please note that the City is not responsible for, and makes no guaranties or warranties related to, the transmission or receipt of email notifications.

Mail Distribution: The City of Laguna Woods is able to mail agendas and/or agenda materials if provided with advance payment for postage and printing (if applicable). To request mail distribution, please email [email protected] or contact the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535.

FOR ADDITIONAL INFORMATION
For additional information, please contact the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535, [email protected], or 24264 El Toro Road, Laguna Woods, California 92637.

AFFIDAVIT OF POSTING

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, Yolie Trippy, City Clerk, City of Laguna Woods, hereby certify under penalty of perjury that this agenda was posted at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, California 92637; on the City’s website (www.cityoflagunawoods.org); and, at other locations designated by Resolution No. 24-08, pursuant to California Government Code Section 54954.2 of the Ralph M. Brown Act. /s/ Yolie Trippy 5/23/25
YOLIE TRIPPY, CMC, City Clerk Date
Laguna Woods City Council Agenda  05/28/2025 Adjourned Regular Page 3 of 8

OPTIONS FOR PUBLIC COMMENTS/TESTIMONY

1. In Person
Members of the public wishing to address the City Council on items appearing on this agenda are advised to indicate their interest in doing so by submitting a speaker card to City staff or proceeding to the podium, one-by-one, at the time an item is considered.

Members of the public wishing to address the City Council on items not appearing on this agenda may do so during Item V.

Each speaker will have the opportunity to speak for up to three minutes once per agenda item, unless otherwise allowed by the City Council.

Speakers are requested, but not required, to identify themselves, either on speaker cards or in comments/testimony. Speakers are advised that their names and any information submitted on speaker cards or otherwise provided in writing to the City may be disclosed or become a matter of public record. No speaker should expect privacy of such information.

2. In Writing
Written public comments/testimony may be delivered to Laguna Woods City Hall (24264 El Toro Road, Laguna Woods, CA 92637) or sent via email ([email protected]) provided that they are received by the City prior to 2:00 p.m. on the day of this meeting.

Written public comments/testimony will be provided to the City Council and included in the City Clerk’s written record of this meeting.

Parties submitting written public comments/testimony are requested, but not required, to identify themselves. Parties are advised that their names, email addresses, and any information submitted in writing to the City may be disclosed or become a matter of public record. No party should expect privacy of such information.

REMOTE VIEWING AND/OR LISTENING OPPORTUNITIES
The City plans to offer the following remote viewing and/or listening opportunities as a courtesy for this meeting. These opportunities are not guaranteed to be operable, technically feasible, or uninterrupted. The instructions provided below are not guaranteed to be correct or all-inclusive as Zoom and YouTube may modify their interfaces and interfaces may differ by device or application. Members of the public who wish to ensure that they are able to view and/or listen to this meeting should attend in person.

1. Zoom (on a computer)
The City plans to live stream this meeting on Zoom (audio and/or video). Please note that public comments/testimony will not be accepted via Zoom. • Visit www.zoom.us

• Click on “Join” (if given an option select “by meeting ID”) • Enter the following meeting ID: 818 7315 5019
• Open the Zoom application following the on-screen prompts • Enter the following meeting password: 752535
• Enter a name and email address as required by Zoom
Parties are advised that information they provide to Zoom may be publicly visible and/or visible to the City and others. No party should expect privacy of such information.

2. Zoom (on a telephone)
The City plans to live stream this meeting on Zoom (audio and/or video). Please note that public comments/testimony will not be accepted via Zoom. • Call (669) 444-9171 or (253) 215-8782
• Follow the prompts and provide the information required by Zoom • When prompted for a webinar ID enter: 818 7315 5019
• When prompted for a passcode enter: 752535
Parties are advised that their telephone number and information provided to Zoom may be publicly visible and/or visible to the City and others. No party should expect privacy of such information.

3. YouTube
The City plans to live stream this meeting on YouTube (audio and/or video). Please note that public comments/testimony will not be accepted via YouTube. • Visit www.youtube.com/@cityoflagunawoods
• Click on the “Live” button
• Click on the “Laguna Woods Channel 3” button
Parties are advised that information they provide to YouTube may be publicly visible and/or visible to the City and others. No party should expect privacy of such information.

4. Cable Television
The City plans to broadcast this meeting on cable television Channel 3 within Laguna Woods Village (audio and/or video). Please note that public comments/testimony will not be accepted via cable television Channel 3.

I. CALL TO ORDER
Introductory Notes:

Members of the public wishing to address the City Council on items appearing on this agenda are advised to indicate their interest in doing so by submitting a speaker card Laguna Woods City Council Agenda  05/28/2025 Adjourned Regular Page 5 of 8 to City staff or proceeding to the podium, one-by-one, at the time an item is considered.

Members of the public wishing to address the City Council on items not appearing on this agenda may do so during Item V.

Each speaker will have the opportunity to speak for up to three minutes once per agenda item, unless otherwise allowed by the City Council.

Speakers are requested, but not required, to identify themselves, both on any applicable speaker cards and in comments/testimony. Speakers are advised that their names and any information submitted on speaker cards or otherwise provided in writing to the City may be disclosed or become a matter of public record. No speaker should expect privacy of such information.

II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. PRESENTATIONS AND CEREMONIAL MATTERS

4.1 72nd Assembly District Nonprofit of the Year – The Foundation of Laguna Woods Village
(agendized by Mayor Horne)
Recommendation: Approve and present a commendation.

V. PUBLIC COMMENTS ON NON-AGENDA ITEMS
About Public Comments on Non-Agenda Items: This is the time and place for members of the public to address the City Council on items not appearing on this agenda. Pursuant to state law, the City Council is unable to take action on such items, but may ask clarifying questions of the speaker, engage in brief discussion, refer items to City staff, and/or schedule items for consideration at future meetings.

VI. CITY TREASURER’S REPORT – None; the monthly City Treasurer’s Report was provided at the regular meeting on May 21, 2025 VII. CONSENT CALENDAR
About the Consent Calendar: All items listed on the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless a member of the City Council or City staff requests that specific items be

removed from the Consent Calendar for separate discussion and consideration of action. Members of the public may address the City Council on items appearing on the Consent Calendar regardless of whether an item is removed for separate discussion and consideration of action.

7.1 Law Enforcement Services
Recommendation: Approve an agreement with the County of Orange for law enforcement services and authorize the Mayor to execute the agreement, subject to approval as to form by the City Attorney.

7.2 Senior Mobility Program Transportation Services
Recommendation: Approve an assignment agreement assigning the existing agreement with Cabco Yellow, Inc. doing business as California Yellow Cab for Senior Mobility Program transportation services to OCY Management, LLC and authorize the City
Manager to execute the assignment agreement, subject to approval as to form by the City Attorney.

VIII. PUBLIC HEARINGS – None
IX. CITY COUNCIL BUSINESS

9.1 Fiscal Years 2025-27 Budget and Work Plan & Fiscal Years 2025- 36 Capital Improvement Program
Recommendation:

1. Provide direction to the City Manager on the development of the Fiscal Years 2025-27 Budget and Work Plan.

AND

2. Provide direction to the City Manager on the development of the Fiscal Years 2025-36 Capital Improvement Program.

X. CITY COUNCIL REPORTS AND COMMENTS
Laguna Woods City Council Agenda  05/28/2025 Adjourned Regular Page 7 of 8 About City Council Reports and Comments: This is the time and place for members of the City Council to provide reports on meetings attended including, but not limited to, meetings of regional boards and entities to which they have been appointed to represent the City and meetings attended at the expense of the City pursuant to California Government Code Section 53232.3. Members of the City Council may also make other comments and announcements.

10.1 Coastal Greenbelt Authority
Mayor Pro Tem McCary, First Alternate: Councilmember Lee, Second Alternate: Councilmember Conners

10.2 Orange County Fire Authority
Mayor Horne

10.3 Orange County Library Advisory Board
Councilmember Moore; Alternate: Mayor Pro Tem McCary

10.4 Orange County Mosquito and Vector Control District Councilmember Lee

10.5 San Joaquin Hills Transportation Corridor Agency
Councilmember Conners; Alternate: Councilmember Lee

10.6 South Orange County Watershed Management Area
Councilmember Moore; Alternate: Mayor Pro Tem McCary

10.7 Liaisons to Laguna Woods Community Bridge Builders Mayor Horne and Mayor Pro Tem McCary

10.8 Other Comments and Reports
XI. CLOSED SESSION
Closed Session Note: While members of the public are not permitted to attend closed session, prior to convening in closed session, the City Council will accept public comments on items appearing on the closed session agenda.

XII. CLOSED SESSION REPORT
XIII. ADJOURNMENT

Next Regular Meeting: Wednesday, June 18, 2025 at 2 p.m.

Laguna Woods City Hall
24264 El Toro Road, Laguna Woods, California 92637

4.1 72ND ASSEMBLY DISTRICT NONPROFIT OF THE
YEAR – THE FOUNDATION OF LAGUNA

WOODS VILLAGE
(AGENDIZED BY MAYOR HORNE)
This page is intentionally blank.

WHEREAS, Assemblymember Diane Dixon selected The Foundation of Laguna Woods Village as the 72nd Assembly District’s 2025 Nonprofit of the Year; and WHEREAS, The Foundation of Laguna Woods Village is an all-volunteer, nonprofit charitable organization dedicated to helping residents of Laguna Woods Village by providing temporary financial and emergency assistance for individuals in need, as well as funding life-enhancing programs for the community; and WHEREAS, in 2024 alone, The Foundation of Laguna Woods Village provided residents with $178,447 in temporary financial assistance, $9,821 in gift cards for gas, and $31,350 in gift cards for groceries, in addition to financial support for services provided to residents by Age Well Senior Services’ Meals on Wheels Program, Health Aging Center Laguna Woods, and South County Outreach; and WHEREAS, to celebrate California Nonprofits Day, Assemblywoman Dixon hosted representatives of The Foundation of Laguna Woods Village in Sacramento on May 21, 2025.

NOW, THEREFORE, BE IT RESOLVED that the Laguna Woods City Council does hereby commend and congratulate The Foundation of Laguna Woods Village on being selected as the 72nd Assembly District’s Nonprofit of the Year.

Dated this 28th day of May 2025
________________________________
Shari L. Horne
Mayor
________________________________
Attest: Yolie Trippy
City Clerk
Commendation
City of Laguna Woods
The Foundation of
Laguna Woods Village
72nd Assembly District
Nonprofit of the Year
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7.0 CONSENT CALENDAR SUMMARY
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ITEM 7.0
CC  05-28-2025 ARM Consent Calendar Summary – AR Page 1 of 2 City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: May 28, 2025 Adjourned Regular Meeting
SUBJECT: Consent Calendar Summary
Recommendation
Approve all proposed actions on the May 28, 2025 Consent Calendar by single motion and City Council action.

Background
All items listed on the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless a member of the City Council, staff, or the public requests that specific items be removed from the Consent Calendar for separate discussion and consideration of action.

Summary
The May 28, 2025 Consent Calendar contains the following items:

7.1 Approval of an agreement with the County of Orange for law enforcement services and authorization for the Mayor to execute the agreement, subject to approval as to form by the City Attorney. The proposed agreement includes a comparable level of service to the current fiscal year, at an annual cost of $3,588,995 (a $206,818, or approximately 6.11%, increase from the current fiscal year’s cost of $3,382,177). The primary cause of increases in law enforcement costs continuesto be labor agreements negotiated by the County of Orange and approved by the Orange County Board of Supervisors. The proposed agreement is for a one-year period through June 30, 2026.

ITEM 7.0
Consent Calendar Summary – AR Page 2 of 2 CC  05-28-2025 ARM

7.2 Approval of an assignment agreement assigning the existing agreement with Cabco Yellow, Inc. doing business as California Yellow Cab for Senior Mobility Program transportation services to OCY Management, LLC and authorization for the City Manager to execute the assignment agreement, subject to approval as to form by the City Attorney. The City entered into an agreement with California Yellow Cab for Senior Mobility Program transportation services on June 22, 2023. Effective June 1, 2025, California Yellow Cab will reorganize into a cooperative with a separate management entity known as OCY Management, LLC. The proposed agreement memorializes OCY Management, LCC’s responsibility for the agreement entered into with California Yellow Cab.

7.1 LAW ENFORCEMENT SERVICES
For additional information on this item,
please refer to Item 7.0 (Consent Calendar Summary).

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CONTRACT
With
City of Laguna Woods
For
Law Enforcement Services
This Contract for Law Enforcement Services, ( ) is made and entered into as of the date fully executed by and between the County of Orange, a political subdivision of the State of California ( ) on behalf of Orange County Sheriff Department, , and the City of Laguna Woods, ( City ) with County and City sometimes individually referred to as

ATTACHMENTS
This Contract is comprised of this document and the following Attachments, which are attached hereto and incorporated by reference into this Contract:

Attachment A Scope of Work
Attachment B Payment Provisions
Attachment C Level of Service
Attachment D City Ordinances
Attachment E TVAP Resolution
Attachment F TVAP Form
Attachment G Forfeited and Seized Asset Policy

RECITALS
WHEREAS, City wishes to contract with County for law enforcement services; and WHEREAS, County is agreeable to the rendering of such services, as authorized in Government Code sections 51301, 54981, and 55632, on the terms and conditions hereinafter set forth, NOW, THEREFORE, the Parties mutually agree as follows:

ARTICLES
General Terms and Conditions:

A. Term of Contract: This Contract shall commence July 1, 2025 and terminate June 30, 2026 unless earlier terminated by either Party or extended in the manner set forth herein.

B. Termination: County and City may terminate this Contract, without cause, upon one-hundred and eighty (180) days written notice to the other Party.

If the County and City have not entered into a written Contract for further law enforcement services thirty (30) days before this Contract terminates, then the County and City may execute an amendment that provides as follows and does not materially alter other terms of the Contract: County shall continue to provide to City all, or a designated part, of the law enforcement services specified herein, for sixty (60) days following the termination date of this Contract, and City shall pay County the full costs of providing such services. Such full costs may be greater than those listed herein.

C. Entire Contract: This Contract contains the entire Contract between the parties with respect to the matters herein, and there are no restrictions, promises, warranties or undertakings other than those set forth herein or referred to herein.

D. Amendments: Unless expressly provided for in this Contract, no alteration or variation of the terms of this Contract shall be valid unless made in writing and signed by the parties; no oral understanding or Contract not ITEM 7.1
County of Orange
Sheriff Coroner Department
Laguna Woods Law Enforcement
Services

incorporated herein shall be binding on either of the parties; and no exceptions, alternatives, substitutes or revisions are valid or binding on either Party unless authorized in writing.

E. Severability: If any term, covenant, condition or provision of this Contract is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

F. Headings: Headings used throughout this Contract are for convenience only and shall not affect the meaning or interpretation of any provisions of this Contract.

G. Independent Contractor: County is and at all times shall be deemed to be, an independent contractor. Nothing herein contained shall be construed as creating the relationship of employer and employee, or principal and agent, between City Sheriff shall retain
all authority for rendition of services, standards of performance, control of personnel, and other matters incident to the performance of services by County pursuant to this Contract. County, its agents and employees, shall not be entitled to any rights or privileges of City employees and shall not be considered in any manner to be City employees.

H. Indemnification: County, its officers, agents, employees, subcontractors and independent contractors shall not be deemed to have assumed any liability for the negligence or any other act or omission of City or any of its officers, agents, employees, subcontractors or independent contractors, or for any dangerous or defective municipal ordinances. City shall indemnify and hold harmless County, and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors from any claim, demand or liability whatsoever based or asserted upon the condition of any public street, work or property of City, or upon the illegality or unconstitutionality of any municipal ordinance of City that Sheriff has enforced, or upon any act or omission of City, or its elected and appointed officials, officers, agents, employees, subcontractors or independent contractors related to this Agreement, including, but not limited to, any act or omission related to the maintenance or condition of any vehicle or motorcycle that is owned or possessed by City and used by County personnel in the performance of this Agreement, for property damage, bodily injury or death or any other element of damage of any kind or nature, and City shall defend at its expense including attorney fees, and with counsel approved in writing by County, County and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors in any legal action or claim of any kind based upon or asserted upon such condition of public street, work or property, or illegality or unconstitutionality of a municipal ordinance, or alleged acts or omissions. If judgment is entered against City and County by a court of competent jurisdiction because of the concurrent active negligence of either party, City and County agree that liability will be apportioned as determined by the court. Neither party shall request a jury apportionment.

County shall indemnify and hold harmless City and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors from any claim, demand or liability whatsoever based or asserted upon any act or omission of County or its elected and appointed officials, officers, agents, employees, subcontractors or independent contractors related to this Agreement, for property damage, bodily injury or death or any other element of damage of any kind or nature, and County shall defend, at its expense, including attorney fees, and with counsel approved in writing by City, City and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors in any legal action or claim of any kind based or asserted upon such alleged acts or omissions.

I. State Audit: Pursuant to Government Code Section 8546.7, City and County shall be subject to examination and audit by the State Auditor for a period of three years after final payment by City to County under this Contract. City and County shall retain all records relating to the performance of this Contract for said threeyear period, except that those records pertaining to any audit then in progress, or to any claims or litigation, shall be retained beyond said three-year period until final resolution of said audit, claim or litigation.

J. Notices: Termination notices shall be effective when written and deposited in the United States mail, certified, return receipt requested and addressed as below. All other notices authorized or required by this Contract shall be effective when written and deposited in the United States mail, first class postage prepaid and addressed as follows:

ITEM 7.1
County of Orange
Sheriff Coroner Department
Laguna Woods Law Enforcement
Services

CITY: ATTN: CITY MANAGER

CITY OF LAGUNA WOODS
24264 EL TORO ROAD
LAGUNA WOODS, CA 92653
COUNTY: ATTN: LAW ENFORCEMENT CONTRACT MANAGER

SHERIFF-CORONER DEPARTMENT
320 NORTH FLOWER STREET, SUITE 108
SANTA ANA, CA 92703
-Signature Page to FollowITEM 7.1
County of Orange
Sheriff Coroner Department
Laguna Woods Law Enforcement
Services

IN WITNESS WHEREOF, the Parties hereto have executed this Contract on the dates opposite their respective signatures:

City: Laguna Woods
By: Title: Mayor
Print Name: Date:

Attest:

City Clerk
Approved as to Form
By: ____________________
City Attorney
County:

By: Title: Chair of the Board of Supervisors
Print Name: Date:

Signed and certified that a copy of this Contract has been delivered to the Chair of the Board Per Government Code section 25103; Resolution 79-1535.

Attest:

Robin Stieler
Clerk of the Board
County of Orange, California
Approved as to Form
Office of the County Counsel
Orange County, California
By: ____________________
Deputy
ITEM 7.1
County of Orange
Sheriff Coroner Department

ATTACHMENT A

SCOPE OF WORK
A. REGULAR SERVICES BY COUNTY:

1. Sheriff shall render to City law enforcement services as hereinafter provided. Such services shall include the enforcement of lawful State statutes and lawful municipal ordinances of City, other than licensing ordinances.

2. The night, day and evening patrol and supervisory shifts will be established by Sheriff. Personnel of each shift may work varying and different times and may be deployed to other shifts when, in the opinion of Sheriff and City Manager, the need arises. Any long-term shift deployment change will be reported to the City Council.

3. The level of service, other than for licensing, to be provided by the County for this Contract is set forth in Attachment C.

4. For any service that is provided to City at less than 100% of a full-time Sheriff position, County retains the option to terminate such service in the event the other City or cities that contract(s) for the balance of the time of the employee providing the service no longer pay(s) for such service and City does not request the Contract be amended to pay 100% of the cost of the employee providing such service. The Maximum Obligation of City will be adjusted accordingly.

5. All services contracted for in this Contract may not be operational on the precise date specified in this Contract. In those instances, Sheriff shall notify City Manager of the date or dates such service or services are to be implemented. If the City pays for a service before its implementation, the County shall provide a credit, based on the vacancy credit rates calculated for that fiscal year, . 6. During emergencies, such as mutual aid situations, Sheriff will attempt to leave in City the Captain in charge of City Police Services. If Sheriff determines that the Captain is needed elsewhere, Sheriff will notify Manager within four hours. Sheriff will return the Captain to City as soon as possible once the emergency situation is under control.

7. Sheriff shall receive applications for City licenses pursuant to ordinances in Attachment D and complete investigations relating to such applications. Said investigations shall be forwarded to City Manager who is responsible for the disposition of the application and notification to the applicant. County shall not provide any advisory, administrative, hearing or litigation attorney support or services related to licensing. County shall not provide any administrative or investigatory services related to the licensing ordinances, except the investigations relating to initial applications for which this subsection provides.

8. With the limitations set forth below, Sheriff, on behalf of County, is authorized to execute written amendments to this Contract to increase or decrease the level of service, when Sheriff and City mutually agree that such increase or decrease in the level of service is appropriate. Any such amendment to the Contract shall concomitantly increase or decrease the cost of services payable by City. Sheriff and appropriate City personnel shall file copies of any such amendments to this Contract with the Clerk of Board of Supervisors and City Clerk. Except for costs related to Employee Bargaining has defined herein, changes to this Contract executed by Sheriff and City Manager may not, in the aggregate, increase or decrease the cost of services payable by City by more than one percent (1%) of the Maximum Obligation.

B. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY:

1. Enhanced services for events on City property. At the request of City, through its City Manager, Sheriff may provide enhanced law enforcement services for functions, such as community events, conducted on property that is owned, leased or operated by City. Sheriff shall determine personnel and equipment needed for such enhanced services. City shall reimburse County for such additional services, at an amount computed by Sheriff, based on the County law enforcement cost study. The cost of these enhanced services shall be in addition to the Maximum Obligation of City. Sheriff shall bill City immediately after each such event.

ITEM 7.1
County of Orange
Sheriff Coroner Department

2. Supplemental services for occasional events operated by private individuals and entities on non-City property. At the request of City, through its City Manager, Sheriff may provide supplemental law enforcement services to preserve the peace at special events or occurrences that occur on an occasional basis and are operated by private individuals or private entities on non-City property. Sheriff shall determine personnel and equipment needed for such supplemental services, and will provide such supplemental services only if Sheriff is able to do so without reducing the normal and regular ongoing services that Sheriff otherwise would provide to City pursuant to this Contract. Such supplemental services shall be provided only by regularly appointed full-time peace officers, at rates of pay governed by a Memorandum of Understanding between County and the bargaining unit(s) representing the peace officers providing the services. Such supplemental services shall include only law enforcement duties and shall not include services authorized to be provided by a private patrol operator, as defined in Section 7582.1 of the Business and Professions Code. Law enforcement support functions, including, but not limited to, clerical functions and forensic science services, may be performed by non-peace officer personnel if the services do not involve patrol or keeping the peace and are incidental to the provision of law enforcement services. City shall reimburse County its full, actual costs of providing such supplemental services at an amount computed by Sheriff, based on the current County law enforcement cost study. The cost of these supplemental services shall be in addition to the Maximum Obligation of City. Sheriff shall bill City immediately after each such event.

3. Supplemental services for events operated by public entities on non-City property. At the request of City, through its City Manager, Sheriff may provide supplemental law enforcement services to preserve the peace at special events or occurrences that occur on an occasional basis and are operated by public entities on non-City property.

Sheriff shall determine personnel and equipment needed for such supplemental services, and will provide such supplemental services only if Sheriff is able to do so without reducing services that Sheriff otherwise would provide to City pursuant to this Contract. City shall reimburse County its full, actual costs of providing such supplemental services at an amount computed by Sheriff, based on the current year's County law enforcement cost study. The cost of these supplemental services shall be in addition to the Maximum Obligation of City. Sheriff shall bill City immediately after each such event.

4. Notwithstanding the foregoing, City, through its permit process, may utilize the services of Sheriff at events, for which City issues permits, that are operated by private individuals or entities or public entities. Sheriff shall determine personnel and equipment needed for said events. If said events are in addition to the level of services listed in this Contract, City shall reimburse County for such additional services at an amount computed by Sheriff, based County law enforcement cost study. The cost of these services shall be in addition to the Maximum Obligation of City. Sheriff shall bill City immediately after said services are rendered.

5. In accordance with Government Code Section 51350, County has adopted Board Resolution 89-1160 which identifies Countywide services, including but not limited to helicopter response. Sheriff through this contract provides enhanced helicopter response services. The cost of enhanced helicopter response services is included in the Maximum Obligation of City. County shall not charge any additional amounts for enhanced helicopter services without written notification to the City.

C. BODY WORN CAMERA AND IN CAR VIDEO:

1. As part of the law enforcement services to be provided to City, County has provided, or will provide, body personnel and In Car Video (hereinafter
Sheriff for use within City service area.

2. Sheriff has the exclusive right to use said BWC and ICV for law enforcement services related to this Contract.

3. City shall pay County the full costs to County of a) the acquisition of BWC and the acquisition and installation of ICV, and b) recurring costs, as deemed necessary by County, including the costs of maintenance and contributions to a fund for replacement and upgrade of such BWC and ICV when they become functionally or technologically obsolete. The costs to be paid by City for recurring costs, including maintenance and replacement/upgrade of BWC and ICV, are included in the costs set forth in the Maximum Obligation of City, unless City has already paid such costs.

4. If, following the initial acquisition of BWC and ICV referenced above, City requires BWC and ICV for additional personnel or vehicles designated for use in the City service area, County will purchase said additional BWC and ICV. Upon demand by County, City will pay to County a) the full costs of acquisition of ITEM 7.1
County of Orange
Sheriff Coroner Department

additional BWC and the full cost of acquisition and installation of additional ICV, and b) the full recurring costs for said BWC and ICV, as deemed necessary by County, including the costs of maintenance, and contributions to a fund for replacement and upgrade of such BWC and ICV when they become functionally or technologically obsolete. Said costs related to additional BWC and ICV are not included in, and are in addition to, the costs set forth in the Maximum Obligation.

5. County will replace and/or upgrade BWC and ICV as needed. The costs of replacing/upgrading BWC and ICV shall be paid by County from the replacement/upgrade funds to be paid by City in accordance with the foregoing.

City shall not be charged any additional charge to replace or upgrade BWC and ICV.

D. TRAFFIC VIOLATOR APPREHENSION PROGRAM:

1. County has established a Traffic Violator Apprehension Program ( ), which is operated by Sheriff, and is designed to reduce vehicle accidents caused by unlicensed drivers and drivers whose licenses are suspended and to educate the public about the requirements of the Vehicle Code and related safety issues with regard to driver licensing, vehicle registration, vehicle operation, and vehicle parking. The Program operates throughout the unincorporated areas of the County and in the cities that contract with County for law enforcement services, without regard to jurisdictional boundaries, because an area-wide approach to reduction of traffic accidents and driver education is most effective in preventing traffic accidents. In order for City to participate in the Program, City has adopted fees pursuant to Vehicle Code Section 22850.5, in the same amount as approved by County, as set forth in the resolution that is Attachment E ( ), and has directed that the revenue from such fee be used for the Program. participation in the Program may be terminated at any time by rescission or amendment of its TVAP resolution. In the event City 1) amends said TVAP resolution, or rescinds said TVAP resolution and adopts a new TVAP resolution pertaining to the above-referenced fees and the Program, and 2) remains a participant in the Program thereafter, Manager, on behalf of City, and Sheriff, on behalf of County, have authority to execute an amendment of this Contract to substitute amended or new TVAP resolution for Attachment E to the Contract, as long as said amendment to this Contract does not materially change any other provision of this Contract. As County updates its fees for the Program periodically, County will provide written notice to City of the updated fees. City participation in the Program will terminate if City determines not to adopt the updated fees for the Program.

2. County will make available for review, at the request of City, all financial data related to the Program as may be requested by City.

3. Fee revenue generated by County and participating cities will be used to fund the following positions, which will be assigned to the Program:

Ten one hundredths of one (0.10) Sergeant
(8 hours per two-week pay period)
One (1) Staff Specialist
(80 hours per two-week pay period)
One (1) Office Specialist
(80 hours per two-week pay period)

4. Fee revenue generated by City may be used to reimburse City for expenditures for equipment and/or supplies directly in support of the Program. In order for an expenditure for equipment and/or supplies to be eligible for reimbursement, City shall submit a request for and obtain pre-approval of the expenditure by using the form as shown in Attachment F.

The request shall be submitted within the budget schedule established by Sheriff. Sheriff shall approve the expenditure only if both of the following conditions are satisfied: 1) there are sufficient Program funds, attributable to revenue generated by City fee, to pay for the requested purchase, and 2) City will use the equipment and/or supplies, during their entire useful life, only for purposes authorized by its TVAP resolution in effect at the time of purchase.

ITEM 7.1
County of Orange
Sheriff Coroner Department

In the event that City terminates its participation in the Program, City agrees that the equipment purchased by City and reimbursed by Program funds will continue to be used, during the remainder of its useful life, exclusively for the purposes authorized by City TVAP resolution in effect at the time of purchase.

5. In the event the fees adopted by County, City and other participating jurisdictions are not adequate to continue operation of the Program at the level at which it operated previously, County, at the option of City, will reduce the level of Program service to be provided to City or will continue to provide the existing level of Program services.

County will charge City the cost of any Program operations that exceed the revenue generated by fees. Such charges shall be in addition to the Maximum Obligation of City. The amount of any revenue shortfall charged to City will be determined, at the time the revenue shortfall is experienced, according to City share of Program services rendered.

In the event of a reduction in level of Program service, termination of Program service or adjustment of costs, the parties shall execute an amendment to this Contract so providing. Decisions about how to reduce the level of Program service provided to City shall be made by Sheriff with the approval of City.

E. MOBILE DATA COMPUTERS:

1. As part of the law enforcement services to be provided to City, County has provided, or will provide, mobile designated by County for use within City limits.

2. Sheriff has the exclusive right to use said MDCs for law enforcement services related to this Contract.

3. City shall pay County the full costs to County of a) the acquisition and installation of MDCs that are or will be mounted in patrol vehicles and motorcycles assigned to City, and b) recurring costs, as deemed necessary by County, including the costs of maintenance and contributions to a fund for replacement and upgrade of such MDCs when they become functionally or technologically obsolete.

The costs to be paid by City for recurring costs, including maintenance and replacement/upgrade of MDCs, are included in the costs set forth in the Maximum Obligation of City unless City has already paid such costs.

4. If, following the initial acquisition of MDCs referenced above, City requires MDCs for additional patrol cars or motorcycles designated for use in City, or for City Emergency Operations Center, County will purchase said additional MDCs. Upon demand by County, City will pay to County a) the full costs of acquisition and installation of said additional MDCs, and b) the full recurring costs for said MDCs, as deemed necessary by County, including the costs of maintenance, and contributions to a fund for replacement and upgrade of such MDCs when they become functionally or technologically obsolete. Said costs related to additional MDCs are not included in, and are in addition to, the costs set forth in the Maximum Obligation of City.

5. County will replace and/or upgrade MDCs as needed. The costs of replacing/upgrading MDCs shall be paid by County from the replacement/upgrade funds to be paid by City in accordance with the foregoing. City shall not be charged any additional charge to replace or upgrade MDCs.

F. E-CITATION UNITS:

1. As part of the law enforcement services to be provided to City, County has provided, or will provide, ECitation units designated by County for use within City limits.

2. Sheriff has the exclusive right to use said E-Citation units for law enforcement services related to this Contract.

3. City shall pay County the full costs to County of a) the acquisition of E-Citation units that are assigned to City, and b) recurring costs, as deemed necessary by County, including the costs of maintenance and contributions to a fund for replacement and upgrade of such E-Citation units when they become functionally or technologically obsolete.

The costs to be paid by City for recurring costs, including maintenance and replacement/upgrade of E-Citation units, are included in the costs set forth in the Maximum Obligation of City unless City has already paid such costs.

4. If, following the initial acquisition of E-Citation units referenced above, City requires additional E-Citation units designated for use in City, County will purchase said additional E-Citation units. Upon demand by County, City will pay to County a) the full costs of acquisition of said additional E-Citation units, and b) the full recurring ITEM 7.1
County of Orange
Sheriff Coroner Department

costs for said E-Citation units, as deemed necessary by County, including the costs of maintenance, and contributions to a fund for replacement and upgrade of such E-Citation units when they become functionally or technologically obsolete. Said costs related to additional E-Citation units are not included in, and are in addition to, the costs set forth in the Maximum Obligation of City.

5. County will replace and/or upgrade E-Citation units as needed. The costs of replacing/upgrading E-Citation units shall be paid by County from the replacement/upgrade funds to be paid by City in accordance with the foregoing.

City shall not be charged any additional charge to replace or upgrade E-Citation units.

G. EQUIPMENT:

1. As part of the law enforcement services to be provided to City, County shall purchase motorcycles and radios that meet certain law enforcement standards as determined by the County

2. City shall pay County the full costs to County of a) the acquisition of Equipment, b) recurring costs, c) the costs of maintenance, and d) replacement and upgrade of such Equipment when they become functionally or technologically obsolete, as deemed necessary by County. The costs to be paid by City are included in the costs set forth in the Maximum Obligation of City.

3. The Equipment purchased by the County for services to the City shall be the property of the County.

4. Radios and motorcycles previously purchased by the City for County law enforcement services to the City shall be the property of and maintained by the City. Notwithstanding the Indemnification provisions of this Contract, County shall be responsible to City for any damage to City radios and motorcycles caused by act or omission.

H. CITY OFFICE SPACE

1. In consideration of the promises contained herein, City hereby grants to County rent-free use of office space, office furniture, and office equipment and supplies located in City Hall or other City building for the provision of services under this Contract. Said office space, furniture and equipment and supplies shall be used solely by personnel of City and County, while performing their assigned duties related to services under this Contract. City and County shall mutually agree on the precise location, size and type of said office space, office furniture and office equipment supplies. City shall supply all repair, maintenance and janitorial supplies and services to said premises and shall be responsible for all charges for utilities supplied to said premises.

2. City shall be responsible for the cost of fuel used for services in this Contract. City may: 1) provide fuel via 2) otherwise pay the County for the provision of fuel in a manner that is acceptable to both Parties. For motorcycles, the City shall pay the County for the provision of fuel in a manner that is acceptable to both Parties. For all other vehicles, City and County shall mutually agree on which method shall be utilized. Limited reimbursement of such costs is included in the costs set forth in Attachment B.

3. Persons detained in City will be booked into the Sheriff Intake-Release Center. Persons will not be booked or housed at the Police Station.

ITEM 7.1
County of Orange
Sheriff Coroner Department

ATTACHMENT B

PAYMENT PROVISIONS

1. Compensation: Pursuant to Government Code Section 51350, City agrees to pay to County the full costs of performing the services mutually agreed upon in this Contract. The costs of services include salaries, wages, benefits, mileage, services, supplies, equipment, and divisional, departmental and County General overhead.

The Maximum Obligation of City for services to be provided by the County for the period July 1, 2025 through June 30, 2026 shall be $ . The County shall provide the City with a new Maximum Obligation prior to the start of the new fiscal year term for the remaining fiscal years included in this Contract Term, if applicable.

The overtime costs included in the Contract are only an estimate. Sheriff shall notify City of actual overtime worked during each fiscal year. If actual overtime worked is above or below budgeted amounts, billings will be adjusted accordingly at the end of the fiscal year. Actual overtime costs may exceed City Maximum Obligation.

2. Invoice: County shall invoice City monthly and will require payment by City of one-twelfth (1/12) of the Maximum Obligation of City. If a determination is made that increases due to Employee Bargaining must be paid, County thereafter shall include the pro-rata charges for such increases in its monthly invoices to City for the balance.

3. Employee Bargaining: At the time this Contract is executed, there may be unresolved issues pertaining to potential changes in salaries and benefits for County employees. If changes result in the County incurring or becoming obligated to pay for increased costs for or on account of personnel whose costs are included in the calculations of costs charged to City hereunder, City shall pay County, the full costs of said increases to the extent such increases are attributable to work performed by such personnel after the starting date of this Contract. City shall pay County in full for such increases on a pro-rata basis over the portion of the Contract term remaining after County notifies City that increases are payable.

If City is required to pay for such increases, County, at the request of City, will thereafter reduce the level of service provided to City to a level that will make the Maximum Obligation of City an amount specified by City.

The purpose of such adjustment of service levels will be to give City the option of keeping its Maximum Obligation hereunder at the pre-increase level or at any other higher or lower level specified by City. In the event of such reduction in level of service and adjustment of costs, the parties shall execute an amendment to this Contract. Decisions about how to reduce the level of service provided to City shall be made by Sheriff with the approval of City.

4. Billing Policy: City shall pay County in accordance with County Billing Policy dated October 27, 1992. The provisions of the policy, including a discount for early payment, shall apply to this Contract. Payments made electronically via a credit card or through a banking system that charges Merchant Fees, Service Fees, or any other Fees shall be the responsibility of the City. If the County is charged any of the before mentioned fees, the City shall be responsible for payment of these fees to the County.

5. Late Penalties: County shall charge City late payment penalties in accordance with County Billing Policy.

6. Licensing Payments: As payment for the Licensing Services described in this Contract, County shall retain all fees paid by applicants for licenses pursuant to City ordinances. Retention of said fees by County shall constitute payment in full to County for costs incurred by County in performing the functions related to licensing; provided, however, that if any of said fees are waived or reduced by City, City shall pay to County the difference between the amount of fees retained by County and the fees that were set forth in the ordinances at the time this Contract was executed. If City increases the fee schedule for the licensing ordinances, either party shall have the right to seek amendment of this Contract with respect to the division of the increased fees between City and County.

7. Fees: Fees generated or collected by Sheriff contract personnel for response to false alarms or copying of documents related to the services provided in this Contract will be at County-established rates and will be credited to City on an annual basis. Narcotic asset forfeitures will be handled pursuant to Attachment G.

ITEM 7.1

ATTACHMENT C
Title Detail Quantity
Cost of Service
(each)
Cost of Service
Total
INVESTIGATION SERVICES:

Investigator 0.50 $ 413,992 $ 206,996
PATROL AND TRAFFIC SERVICES:

Sergeant Patrol/Traffic 1.00 $ 429,028 $ 429,028
Sergeant Patrol/Traffic 0.34 $ 145,869 $ 145,869
Deputy Sheriff II Traffic 6.00 $ 349,008 $ 2,094,046
TOTAL POSITIONS 7.84 $ 2,875,939
REGIONAL / SHARED STAFF:

Title Regional Team Quantity % Allocation Cost $
TRAFFIC:

Sergeant Traffic 0.60 2.07% $ 6,540
Investigator Traffic 1.00 2.07% $ 7,524
Deputy Sheriff II Traffic 3.00 2.07% $ 26,601
Investigative Assistant Traffic 2.00 2.07% $ 7,729
AUTO THEFT:

Sergeant Auto Theft 0.30 0.66% $ 1,033
Investigator Auto Theft 2.00 0.66% $ 5,467
Investigative Assistant Auto Theft 1.00 0.66% $ 1,210
Office Specialist Auto Theft 1.00 0.66% $ 924
DIRECT ENFORCEMENT:

Sergeant DET 1.00 0.32% $ 1,761
Investigator DET 1.00 0.32% $ 1,567
COURTS:

Investigative Assistant Courts 2.00 1.69% $ 5,824
TOTAL REGIONAL/SHARED 14.90 $ 66,180
OTHER CHARGES AND CREDITS:

OTHER CHARGES:

CREDITS:

TOTAL OTHER CHARGES AND CREDITS $ 646,876
TOTAL COST OF SERVICES $ 3,588,995

ORANGE COUNTY SHERIFF-CORONER

CITY OF LAGUNA WOODS
FY 2025-26

LEVEL OF SERVICE
Credits include: AB 109 (2011 Public Safety Realignment); estimated vacancy credits; reimbursement for false alarms; reimbursement for training and miscellaneous programs.

Other Charges include: Annual leave paydowns and apportionment of cost of leave balances paid at end of employment; Body Worn Camera (BWC) and In Car Video (ICV); contract administration; data line charges; enhanced helicopter response services; facility lease; holiday pay; Integrated Law & Justice of Orange County fees; Mobile Data Computer (MDC) recurring cost for five and thirty-four hundredths (5.34) units; overtime; patrol training cost allocation; premium pay for bilingual staff, education pay, MARTpay and on-call pay; services and supplies; and transportation charges.

LAW ENFORCEMENT CONTRACT

ITEM 7.1

ATTACHMENT
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28

CITY OF LAGUNA WOODS

LICENSING ORDINANCES

BINGO GAME

BINGO OFFICIAL

CANVASSER/SOLICITOR

COIN DEALER

COMMERCIAL FORTUNETELLER

DANCE INSTRUCTOR (NUDE)

DANCE STUDIO (NUDE)
ESCORT

ESCORT BUREAU

FIGURE MODEL (NUDE)

FIGURE MODEL STUDIO (NUDE)

GUN DEALER

INTERLOCUTRIX (NUDE)

INTRODUCTORY SERVICE

JUNK COLLECTOR

JUNK DEALER

MEDICAL MARIJUANA DISPENSARY

PEDDLER

POOL ROOM

PUBLIC DANCE

RAP SESSION (NUDE)
SECONDHAND DEALER (Pawnbroker)

TAXICAB STAND

ITEM 7.1

ITEM 7.1

ITEM 7.1

ITEM 7.1

ITEM 7.1

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ITEM 7.1

ITEM 7.1

ITEM 7.1

ITEM 7.1
OCSD BUDGET USE ONLYR E Q U E S T C ER TIFI CA T IO N A P P R O V A L S ORANGE COUNTY SHERIFF-CORONER TRAFFIC VIOLATOR APPREHENSION PROGRAM CONTRACT CITY Participating City Request to Purchase From the TVA in FY Date APPLICABILTY QUANTITY ITEM DESCRIPTION TO TVA PROGRAM ESTIMATED COST THE CITY CERTIFIES THAT THE EQUIPMENT PURCHASED BY CITY AND TO BE REIMBURSED BY PROGRAM FUNDS WILL BE USED FOR ITS ENTIRE USEFUL LIFE EXCLUSIVELY FOR THE PURPOSES OF THE TRAFFIC VIOLATOR APPREHENSION PROGRAM CITY MANAGER REQUEST: Printed Name Signature: DATE Recommended For Approval CITY POLICE SERVICES CHIEF MANAGER TVA PROGRAM ORANGE COUNTY SHERIFF-CORONER DEPARTMENT ITEM 7.1
5/7/2020 Rev.

ATTACHMENT

POLICY FOR DISTRIBUTION OF FORFEITED AND SEIZED ASSETS

BACKGROUND
The Orange County Sheriff’s Department provides contract law enforcement services to cities in Orange County. Because of the increased likelihood that contracted patrol or investigation personnel may become involved in significant narcotic seizures, which could affect law enforcement services provided by the Sheriff’s Department to contract cities, the following policy is in effect.

CONTRACTED PATROL AND INVESTIGATION OFFICERS
When assets (cash or property) are seized in CITY by contracted patrol or investigation personnel, and subsequently forfeited to COUNTY’s Sheriff Department, hereinafter referred to as “SHERIFF”, the forfeited assets shall be shared with CITY as set forth below, for the purpose of augmenting law enforcement services in CITY, subject to guidelines by the forfeiting agency of such sharing and use of forfeited assets. A portion of forfeited assets may be retained by SHERIFF, to pay for departmental expenses not recovered through law enforcement contracts.

In such cases, pursuant to the forfeiting agency’s guidelines, SHERIFF shall apply to the forfeiting agency for the return of a share of assets. In his application, SHERIFF shall specify the percentage of shared assets returned to SHERIFF that will be used to augment law enforcement services in CITY and the use of said assets by CITY.

In those cases in which assets are seized within CITY by personnel assigned to CITY pursuant to this Agreement, without the involvement of other law enforcement personnel, and in which the seizure is a result solely of activities self-initiated by SHERIFF personnel assigned to CITY or initiated by said personnel in response to calls for service within CITY, SHERIFF shall apply to have all of the assets used to augment CITY law enforcement services.

In those cases in which SHERIFF personnel assigned to CITY pursuant to this Agreement play an ancillary role in a seizure or in which other law enforcement personnel are involved in a seizure, SHERIFF shall determine the percentage of the total forfeited assets for which he will apply to augment CITY’s law enforcement services. This determination will be based on the circumstances of the seizure, including the pro-rata involvement of all personnel, including those assigned to CITY.

Each seizure will be evaluated on an individual and independent basis, and said evaluations will be available for review to CITY’s manager. Examples of those incidents which would be evaluated as set forth in this section include situations in which a contract patrol deputy provides uniformed backup at a SHERIFF’s Narcotic Bureau search warrant location or in which contract investigators participate in the service of a search warrant that was initiated by non-contract law enforcement personnel.

Assets (cash or property) that are returned to SHERIFF by the forfeiting agency with the understanding that they will be used to augment CITY law enforcement services shall be used by CITY and SHERIFF only for such purposes. If the forfeiting agency attaches additional or more specific conditions to the use of said assets, CITY and SHERIFF shall also abide by those conditions. SHERIFF and CITY’s manager shall determine the specific use of said assets within the conditions imposed by the forfeiting agency.

ITEM 7.1
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7.2 SENIOR MOBILITY PROGRAM

TRANSPORTATION SERVICES
For additional information on this item,
please refer to Item 7.0 (Consent Calendar Summary).

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ITEM 7.2
-1-

ASSIGNMENT AGREEMENT
This ASSIGNMENT AGREEMENT (“ASSIGNMENT”) is made and entered into as of _______________, by and among OCY Management, LLC (“ASSIGNEE”) and the City of Laguna Woods, a California municipal corporation (“CITY”) with reference to the following facts:

A. CITY and Cabco Yellow, Inc. d/b/a California Yellow Cab (“ASSIGNOR”) entered that certain AGREEMENT FOR CONSULTANT SERVICES (“AGREEMENT”) for Senior Mobility Program transportation services, dated June 22, 2023, following CITY’s City Council’s approval of the same on June 21, 2023.

B. Per Section 15 of the AGREEMENT, ASSIGNOR “shall not assign or transfer this Agreement or any portion of this AGREEMENT or the performance of any of [ASSIGNOR]’s duties or obligations under this AGREEMENT without the prior written consent of the City Council.”
C. Effective June 1, 2025, ASSIGNOR will reorganize into a cooperative with a separate management entity known as OCY Management, LLC (“ASSIGNMENT DATE”).

D. On and after the ASSIGNMENT DATE, ASSIGNEE desires to assume the AGREEMENT in its entirety and all of ASSIGNOR’s duties and obligations under the AGREEMENT.

E. CITY consents to the assignment of the AGREEMENT from ASSIGNOR or ASSIGNEE.

In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. On and after the ASSIGNMENT DATE, ASSIGNEE assumes and agrees to perform all terms, covenants and conditions of the AGREEMENT on the part of the ASSIGNOR therein required to be performed arising on or after the ASSIGNMENT DATE subject to the terms of the AGREEMENT.

2. The parties intend that this ASSIGNMENT is a novation and that, on and after the ASSIGNMENT DATE, the ASSIGNEE is substituted for ASSIGNOR. CITY recognizes ASSIGNEE as ASSIGNOR’S successor-in-interest in and to the AGREEMENT.

3. The person or persons executing this ASSIGNMENT on behalf of ASSIGNEE represent and warrant that he/she/they has/have the authority to so execute this ASSIGNMENT and to bind ASSIGNEE to the performance of its obligations under the AGREEMENT.

4. This ASSIGNMENT may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same agreement. The parties may also deliver executed copies of this ASSIGNMENT to each other by electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000) or other transmission ITEM 7.2
-2-
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. No party may raise the use of any image transmission device or method or the fact that any signature was transmitted as an image as a defense to the enforcement of this ASSIGNMENT. At the request of either party, the parties will confirm signatures by signing and delivering an original ASSIGNMENT.

IN WITNESS WHEREOF, ASSIGNOR and ASSIGNEE have executed this ASSIGNMENT as of the date first set forth above.

ASSIGNOR:

Cabco Yellow, Inc. doing business as California
Yellow Cab
By:_______________________________________
Name: Akbar Majid
Title: President
By:_______________________________________
Name: Jackson Fraser
Title: Secretary
ASSIGNEE:

OCY Management, LLC
By:_______________________________________
Name: Akbar Majid
Title: President
By:_______________________________________
Name: Jackson Fraser
Title: Director of Operations
ITEM 7.2
-3-
With consent of the City of Laguna Woods.

CITY OF LAGUNA WOODS:

By _______________________________________
Christopher Macon, City Manager
Approved as to Form:
__________________________________________
Alisha Patterson, City Attorney
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9.1 FISCAL YEARS 2025-27 BUDGET AND WORK
PLAN & FISCAL YEARS 2025-36 CAPITAL

IMPROVEMENT PROGRAM
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ITEM 9.1
CC  05-28-2025 ARM ITEM 9.1 – AR Page 1 of 2
City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: May 28, 2025 Adjourned Regular Meeting
SUBJECT: Fiscal Years 2025-27 Budget and Work Plan & Fiscal Years 2025- 36 Capital Improvement Program
Recommendation

1. Provide direction to the City Manager on the development of the Fiscal Years 2025-27 Budget and Work Plan.

AND

2. Provide direction to the City Manager on the development of the Fiscal Years 2025-36 Capital Improvement Program
Background
At the regular meeting on March 19, 2025, the City Council heard a presentation on preliminary drafts of chapters 1.0 (City Background), 2.0 (City Organization), and 3.0 (City Budget Practices) of the Fiscal Years 2025-27 Budget and Work Plan. Councilmembers expressed consensus support for the authorized employee positions and staffing plans described in Chapter 2.0, including the “in-sourcing” of building and code enforcement functions.

At the regular meeting on April 16, 2025, the City Council heard a presentation on law enforcement contract costs and a preliminary draft of Chapter 8.0 (City Capital Projects).

At the regular meeting on May 21, 2025, the City Council heard a presentation on ITEM 9.1
ITEM 9.1 – AR Page 2 of 2 CC  05-28-2025 ARM
a preliminary draft of Chapter 7.0 (City Work Plan).

Discussion
Today’s meeting is one of several opportunities for the City Council to receive public input and provide direction to staff on the development of the Fiscal Years 2025-27 Budget and Work Plan (July 1, 2025 through June 30, 2027) & Fiscal Years 2025-36 Capital Improvement Program (July 1, 2025 through June 30, 2036).

A preliminary draft of Chapter 5.0 (City Budget Detail, General and Capital Funds) of the Fiscal Years 2025-27 Budget and Work Plan is included as Attachment A.

Staff plans to discuss the preliminary draft and other budgetary matters at the meeting.

Additional budget chapters will be presented for review at future meetings.

Report Prepared With: Liz Torres, Administrative Services Director/City Treasurer Attachment: A – Draft Chapter 5.0 (City Budget Detail, General and Capital Funds) CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-1

5.0. CITY BUDGET DETAIL,

GENERAL AND CAPITAL FUNDS
This chapter presents fund-level revenue and expenditure detail for the programs, projects, and services included in this budget. “AT-A-GLANCE” GENERAL FUND SUMMARY
[General Fund Revenue over/(under) Operating Expenditures Estimate] Fiscal Year
2025-26
Fiscal Year
2026-27
Total General Fund Revenue Estimate $9,303,200 $9,525,200 Non-Operating Revenue Estimate $0 $0
Operating Expenditures ($8,394,328) ($8,941,466)
Total General Fund Operating Revenue
over/(under) Operating Expenditures $908,872 $583,734
[Total General Fund Non-Operating Expenditures and Transfers] Fiscal Year
2025-26
Fiscal Year
2026-27
Non-Operating Expenditures $560,000 $320,000
Transfers to Capital Projects Fund $1,860,000 $350,000
Total $2,420,000 $670,000
[Total General Fund Expenditures and Transfers]
Fiscal Year
2025-26
Fiscal Year
2026-27
Total General Fund Operating
Expenditures $8,394,328 $8,941,466
Total General Fund Non-Operating
Expenditures and Transfers $2,420,000 $670,000
Total $10,814,328 $9,611,466
ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-2 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN The General Fund operating budget for Fiscal Year 2025-26 is balanced and totals $8,394,328. At year-end, it is projected that the unassigned General Fund balance will total $7,210,226, or 85.9% of the Fiscal Year 2025-26 operating budget. That unassigned fund balance would be in addition to assigned reserves totaling $4,905,723. An additional $2,420,000 is budgeted for nonoperating expenditures and transfers to the Capital Projects Fund.

The General Fund operating budget for Fiscal Year 2026-27 is balanced and totals $8,941,466. At year-end, it is projected that the unassigned General Fund balance will total $7,012,960, or 78.4% of the Fiscal Year 2026-27 operating budget. That unassigned fund balance would be in addition to assigned reserves totaling $5,016,723. An additional $670,000 is budgeted for nonoperating expenditures. [Allocation of General Fund Operating Revenue – Fiscal Years 2025-27] Operating expenditures are budgeted at 9.8% and 6.1% less than estimated operating revenue in fiscal years 2025-26 and 2026-27, respectively. That delta provides a “buffer” for economic changes and may offset non-operating expenditures and transfers to the Capital Projects Fund.

GENERAL FUND SUMMARY – REVENUE
General Fund revenue for Fiscal Year 2025-26 is estimated to be $9,303,200, or

3.4% more than year-end projections for Fiscal Year 2024-25. In Fiscal Year 2026- 27, General Fund revenue is estimated to be $9,525,200, which reflects growth of $222,000, or 2.4%, over the Fiscal Year 2025-26 estimate.

Allocated for Operating
Expenditures (93.9%)
Allocated for Operating
Expenditures (90.2%)
Revenue Not Allocated for
Operating Expenditures (6.1%)
Revenue Not Allocated for
Operating Expenditures (9.8%)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2026-27 (Estimate)
2025-26 (Estimate)
ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-3 [General Fund Revenue Estimates by Source – Fiscal Years 2025-27] General Fund Revenue Source Percent of Adopted
Budget Estimate
(Fiscal Year 2025-26)
Percent of Adopted
Budget Estimate
(Fiscal Year 2026-27)
Property Tax 39.8% 40.6%
Property Transfer Tax 1.4% 1.4%
Sales Tax 13.3% 13.5%
Cannabis Business Tax 12.9% 12.6%
Franchise Fees 9.5% 9.4%
Transient Occupancy Tax 6.4% 6.4%
Development Processing Fees 9.5% 9.4%
Interest 4.3% 3.9%
Miscellaneous 2.9% 2.8%
Note: This budget accounts for property tax in lieu of vehicle license fees as part of general property tax revenue and property transfer tax separately. 2025-26
Property Tax
Property Transfer Tax
Sales Tax
Cannabis Business Tax
Franchise Fees
Transient Occupancy Tax
Development Processing Fees
Interest
Miscellaneous
2026-27
Property Tax
Property Transfer Tax
Sales Tax
Cannabis Business Tax
Franchise Fees
Transient Occupancy Tax
Development Processing Fees
Interest
Miscellaneous
ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-4 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN [Historical General Fund Revenue by Source
– Fiscal Years 2014-15 through 2026-27]
0%
10%
20%
30%
40%
50%
60%
Property Tax Property Transfer Tax Sales Tax
0%
10%
20%
30%
40%
50%
60%
Cannabis Business Tax Franchise Fees Transient Occupancy Tax 0%
10%
20%
30%
40%
50%
60%
Development Processing
Fees
Interest Miscellaneous
2014-15 2015-16 2016-17 2017-18
2018-19 2019-20 2020-21 2021-22
2022-23 2023-24 2024-25 (Projection) 2025-26 (Estimate) 2026-27 (Estimate)
ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-5 Property Tax Revenue
Property tax is a tax on certain types of real and personal property. Property tax rates are established by state law, including Proposition 13 (1978), which limits the maximum property tax rate to 1% of assessed value and the maximum annual increase to an inflationary index not to exceed 2%. The County of Orange collects property tax from property owners and distributes a portion of the proceeds to the City.

For every dollar of property tax paid, the City generally receives less than one cent ($0.00879)1. Over 73% of every property tax dollar funds education [Representative Property Tax Allocation – Tax Rate Area 32010] The Orange County Assessor’s Local Assessment Roll of Values for Fiscal Year 2024-25 includes an inflationary index of 2.0%, equal to the Fiscal Year 2023-24 increase of 2.0%. The total value of Laguna Woods’ local assessment roll increased by $207,157,707, or 5.19%, to $4,200,979,082 in Fiscal Year 2024-25, below the Fiscal Year 2023-24 increase of 8.29%.
[Surrounding Cities Local Assessment Rolls – Fiscal Year 2024-25] City Total Local
Assessment Roll
Value
Percent Change of
Local Assessment
Roll Value from
Fiscal Year 2023-24
Laguna Woods $4,200,979,082 5.19%
Aliso Viejo $12,868,219,499 4.70%
1 Representative Tax Rate Area 32010, redevelopment factors and additional debt service excluded Source: Orange County Assessor 2023/24 Annual Tax Increment Tables Education-related
(71.6%)
Orange County Fire
Authority (11.6%)
County of Orange
(7.8%)
El Toro Water
District (1.1%)
City of Laguna
Woods (0.9%) Others (7.0%)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-6 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN Irvine $113,130,210,621 5.33%
Laguna Beach $21,136,020,584 4.95%
Laguna Hills $9,182,889,200 4.34%
In Fiscal Year 2024-25, Laguna Woods had the fourth lowest local assessment roll value in Orange County, ranking above the cities of (from highest to lowest) Los Alamitos, La Palma, and Villa Park.

In Fiscal Year 2024-25, Laguna Woods’ percent change of local assessment roll value (5.19%) was lower than both the percent change for all 34 Orange County cities (5.31%) and the percent change for all 34 Orange County cities plus unincorporated areas in Orange County (5.41%).
[Property Tax Revenue – Fiscal Years 2011-12 through 2026-27] Budget Estimate
(Fiscal Year
2025-26)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2024-25)
Budget Estimate
(Fiscal Year
2026-27)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2025-26)
$3,705,800 3.9% $3,862,400 4.2%
Summary of Significant Trends and Observations
• As required by City Administrative Policy 2.9, property tax revenue was projected and estimated after considering economic forecasts and data from multiple sources, including independent analysis by HdL Coren & Cone.
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-7 • Property tax revenue is the City’s largest single source of revenue and now accounts for approximately 40% of all General Fund revenue. With the exception of a minor decrease in Fiscal Year 2021-22 ($9,795 from Fiscal Year 2020-21), property tax revenue has grown steadily each year since Fiscal Year 2013-14. For fiscal years 2025-26 and 2026-27, that trend is expected to continue.
• Increases in estimated property tax revenue are due, primarily, to two factors: growth in home sale prices and anticipated increases in the consumer price index used to calculate assessed property valuations.

Other factors, to a lesser degree, include the value of new construction and recapture of assessed property valuations that were temporarily reduced pursuant to Proposition 8’s (1978) tax relief program. • Actual changes in property ownership account for just over half of the overall increase in estimated property tax revenue for both fiscal years 2025-26 and 2026-27. The actual increase due to changes in property ownership for Fiscal Year 2025-26 is 2.1% and is estimated at the same for Fiscal Year 2026-27. Those estimates are based on the historical average rate of property turnover and resulting property value increases. • For Fiscal Year 2025-26, just under half of the overall increase in estimated property tax revenue is due to the actual increases in the consumer price index used to increase assessed property valuations. The maximum annual adjustment is 2.0% under Proposition 13 (1978) and the actual increase for Fiscal Year 2025-26 is 2.0%. The estimated increase for Fiscal Year 2026-27 is also 2.0%.
• Were it to occur, the potential future housing construction envisioned by the State of California’s Regional Housing Needs Assessment (“RHNA”) process would result in an expanded property tax base and increased property tax revenue. The City’s 6th Cycle Housing Element provides for the construction of 1,196 new housing units which, if constructed, would represent an 8.9% increase in the local housing stock. New housing units would be assessed at current market values.

Property Transfer Tax Revenue
Property transfer tax is a tax on the recordation of documents transferring ownership of land or real property. Property transfer tax is established by cities and counties and is collected by the County of Orange at a rate of $1.10 per $1,000 of the assessed value of the real estate being transferred. The City and the County of Orange each receive 50% of property transfer tax proceeds.

ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-8 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN [Property Transfer Tax Revenue – Fiscal Years 2011-12 through 2026-27] Budget Estimate
(Fiscal Year
2025-26)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2024-25)
Budget Estimate
(Fiscal Year
2026-27)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2025-26)
$130,000 0.0% $133,100 2.4%
Summary of Significant Trends and Observations
• Property transfer tax revenue is difficult to estimate, as it is only collected during the transfer of land and real property, neither of which the City typically has advance notice. Property transfer tax revenue has leveled off in the past two fiscal years. For Fiscal Year 2025-26, property transfer tax revenue is estimated at the same level as Fiscal Year 2024-25. For Fiscal Year 2026-27, the prior year’s estimate is increased by a Consumer Price Index, All Urban Consumers (CPI-U) projection based on information obtained from the Congressional Budget Office2. • Revenue in Fiscal Year 2016-17 was higher than typical as a result of ownership transfers of two assisted living facilities.

Sales Tax Revenue
Sales tax is a tax on the total retail price of certain types of tangible personal property, as well as on the use or storage of certain other types of property. 2 Congressional Budget Office, The Budget and Economic Outlook: 2025 to 2035, January 2025. $20,000
$55,000
$90,000
$125,000
$160,000
$195,000
ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-9 Sales tax rates are established by a combination of state law and voterapproved ballot measures. The California Department of Tax and Fee Administration collects sales tax from retailers and businesses and distributes a portion of the proceeds to the City.

Of the 7.75% local sales tax rate, the City directly receives only 1% of tax proceeds. The City also receives a portion of the half-cent sales tax collected by the Orange County Transportation Authority pursuant to voter-approved Measure M2 (OC Go) (2006), which is separately accounted for in the Special Revenue Funds section of this budget. The majority of sales tax proceeds are distributed to the State of California and the County of Orange. [Sales Tax Allocation]
[Surrounding Cities Sales Tax Rates and Per Capita Revenue – Calendar Year 20243]
City Sales Tax Rate Per Capita Sales Tax Revenue
for Calendar Year 2024
Laguna Woods 7.75% $71
Aliso Viejo 7.75% $192
Irvine 7.75% $309
Laguna Beach 7.75% $301
Laguna Hills 7.75% $204
In 2024, Laguna Woods ranked 488 of 540 cities statewide, and 33 of 34 cities in Orange County, for per capita sales tax revenue. Within Orange County, only the City of Villa Park had less per capita sales tax revenue ($52). 3 Sales Tax Per Capita (Point of Sale (1%) & County/State Pools), Calendar Year 2024, Hinderliter, de Llamas & Associates. Based on information from the California Department of Tax and Fee Administration.

State of California
(3.9375%)
County of Orange
(2.3125%)
City of Laguna
Woods (1%)
Orange County
Transportation
Authority (0.5%)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-10 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN [Top 25 Sales Tax Producers – Calendar Year 20244]
Top 25 Sales Tax Producers for Calendar Year 2024
19 Restaurant & Lounge McCormick & Son Mortuaries
Adapt 2 It Mobil
Aldi Mother’s Market & Kitchen
Arco Moulton Parkway Auto Spa
Artist Tree Olive Garden
Cart Mart Pizza Guys
Charminar Lw PrestineHydro
CVS Pharmacy Rite Aid
Dollar Tree Sabrosada
Flowerful Saddleback Golf Cars
Home Depot Starbucks (all three locations)
Laguna Cafe and Spirits Stater Bros.

Tomo Sushi
Note: The top 25 sales tax producers are presented in alphabetical order to comply with the confidentiality requirements set forth in state law. State law prohibits the City from presenting “top” sales tax producers in groups of less than 25, ranking sales tax producers either overall or within groups, or disclosing the amounts of sales tax paid by individual sales tax producers. [Sales Tax Revenue – Fiscal Years 2011-12 through 2026-27] 4 Top 75 Sales Tax Producers Rank Comparison – Calendar 2024, Hinderliter, de Llamas & Associates.

Based on information from the California Department of Tax and Fee Administration. Adjusted for economic data.
$800,000
$900,000
$1,000,000
$1,100,000
$1,200,000
$1,300,000
ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-11 Budget Estimate
(Fiscal Year
2025-26)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2024-25)
Budget Estimate
(Fiscal Year
2026-27)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2025-26)
$1,239,000 2.0% $1,285,800 3.8%
Summary of Significant Trends and Observations
• As required by City Administrative Policy 2.9, sales tax revenue was projected and estimated after considering economic forecasts and data from multiple sources, including independent analysis by Hinderliter de Llamas and Associates (“HdL”). HdL’s analysis identified economic uncertainty, inflation, the timing and frequency of Federal Reserve interest rate reductions, higher consumer debt, and lower household discretionary spending as broad economic factors contributing to sales tax performance in fiscal years 2025-26 and 2026-27. For more information, please refer to HdL's California Consensus Forecast based on fourth quarter 2024 data (www.hdlcompanies.com/resources/ webinar/california-consensus-forecast-4q-2024-data).
• The City’s sales tax base continues to be limited in size and lacking in diversity with the top 25 sales tax producing businesses accounting for approximately 96% of total sales tax revenue, and the top five sales tax producing businesses accounting for 63% of total sales tax revenue, in the 2024 calendar year. This dependance on a small number of sales tax producers means that the City is particularly vulnerable to changes in local economic conditions.
[Sales Tax Generated by Top Producers – Calendar Years 2022-2024] Portion of Total Sales Tax
Revenue Generated
Calendar
Year 20225
Calendar
Year 20236
Calendar
Year 20247
Top 25 Sales Tax Producers 96% 96% 96%
Top 5 Sales Tax Producers 57% 60% 63%
5 Top 100 Sales Tax Producers 4Q of 2022, Hinderliter, de Llamas & Associates. Based on information from the California Department of Tax and Fee Administration. Adjusted for economic data. 6 Top 100 Sales Tax Producers 4Q of 2023, Hinderliter, de Llamas & Associates. Based on information from the California Department of Tax and Fee Administration. Adjusted for economic data. 7 Top 100 Sales Tax Producers 4Q of 2024, Hinderliter, de Llamas & Associates. Based on information from the California Department of Tax and Fee Administration. Adjusted for economic data.

ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-12 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN • Sales tax revenue estimates for fiscal years 2025-26 and 2026-27 take into account the bankruptcy-related closure of Rite Aid (expected in the second quarter of 2025), the temporary closure of Mobil to expand the existing convenience store and make other improvements (expected in the third and fourth quarters of 2025), the future opening of a new Shell on the former Moulton Parkway Auto Spa property (expected in the fourth quarter of 2025), and growth in cannabis-related salestax revenue (the City receives both sales tax and cannabis business tax revenue). • Were it to occur, the potential future housing construction envisioned by the State of California’s Regional Housing Needs Assessment (“RHNA”) process could result in a reduced sales tax base and decreased sales tax revenue. Three of the 17 potential housing sites contain a total of four of the top 25 sales tax producers. Such a decrease would likely be at least partially offset by increased property tax revenue.

Cannabis Business Tax
On November 8, 2022, Laguna Woods voters approved Measure T (“City of Laguna Woods Cannabis Business Tax Ordinance”), which established a tax on cannabis businesses conducting business from a fixed location in Laguna Woods. Measure T is codified in Laguna Woods Municipal Code Chapter 3.18.

On August 16, 2023, City Council adopted Ordinance No. 23-01, which set the tax rate for cannabis businesses holding a Type 10 (storefront retailer) license from the California Department of Cannabis Control, or successor agency, at the higher of the two following tax rates:
• A minimum tax rate of 10% of gross receipts received or generated for each monthly reporting period; or
• $35.00 per square foot of floor area (annual tax rate) prorated monthly to 1/12 of the annual tax rate amount.

With the exception of storefront retailers, all other types of cannabis businesses are currently prohibited. The cannabis business tax would apply to other types of cannabis businesses should the City Council decide to permit them in the future including, but not limited to, commercial cultivation, testing laboratories, manufacturing, distribution, non-storefront retail, and events.

ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-13 [Cannabis Business Tax Revenue – Fiscal Years 2011-12 through 2062-27] Budget Estimate
(Fiscal Year
2025-26)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2024-25)
Budget Estimate
(Fiscal Year
2026-27)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2025-26)
$1,200,000 10.8% $1,200,000 0.0%
Summary of Significant Trends and Observations
• City Ordinance No. 23-01, which established a regulatory framework to issue commercial cannabis permits, took effect on September 15, 2023.

The first cannabis storefront retailer opened on May 31, 2024. • Cannabis business tax revenue has tended to increase month-to-month for the first 11 months collected. Revenue is estimated conservatively for fiscal years 2025-26 and 2026-27 due to a lack of historical data.

Franchise Fees Revenue
Franchise fees are collected by the City from the following entities:
• Clear Channel Outdoor (advertising)
• Cox Communications (cable television)
• CR&R Incorporated (solid waste)
• Golden Rain Foundation of Laguna Woods (cable television) $0
$300,000
$600,000
$900,000
$1,200,000
$1,500,000
ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-14 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN • Southern California Edison (electric)
• SoCalGas (gas)
[Franchise Fees Revenue – Fiscal Years 2011-12 through 2062-27] Budget Estimate
(Fiscal Year
2025-26)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2024-25)
Budget Estimate
(Fiscal Year
2026-27)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2025-26)
$883,200 0.8% $892,500 1.1%
Summary of Significant Trends and Observations
• Due to consumer rate increases, franchise fees revenue from Southern California Edison and Southern California Gas is expected to increase modestly during fiscal years 2025-26 and 2026-27.
• Cable television franchise fee revenue (Cox Communications and the Golden Rain Foundation of Laguna Woods) is expected to decline. As television viewing increasingly occurs via online streaming platforms, the number of cable television subscribers decreases, resulting in reduced subscriber fees and advertising receipts, which negatively affects cable television franchise fee revenue. Cable television franchise fee revenue is $366,000, or 41.4%, of the Fiscal Year 2025-26 estimate. • Solid waste franchise fee revenue (CR&R Incorporated) is expected to increase slower than in fiscal years past due to the completion of a fouryear phasing of rate increases that began in Calendar Year 2022 and $500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-15 ended in Calendar Year 2025. Beginning in Calendar Year 2026, solid waste franchise fee revenue is expected to increase only by consumer price index rate increases capped at 5% per calendar year. • Bus shelter franchise fee revenue (Clear Channel Outdoor) is fixed at a flat rate of $40,000 through the end of the existing franchise agreement on December 31, 2027. It is assumed that the franchise agreement will not be renewed or replaced and, as a result, fiscal years 2025-26 and 2026-27 will be the final fiscal years with the current level of annual bus shelter franchise fee revenue.

Transient Occupancy Tax Revenue
Transient occupancy tax is levied at a rate of 10% of the rent charged for most hotel stays and short-term rentals. Transient occupancy tax is collected by the operators of hotels and short-term rentals, and then paid to the City. [Transient Occupancy Tax Revenue – Fiscal Years 2011-12 through 2026-27] Budget Estimate
(Fiscal Year
2025-26)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2024-25)
Budget Estimate
(Fiscal Year
2026-27)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2025-26)
$597,900 1.8% $609,200 1.9%
Summary of Significant Trends and Observations
• Transient occupancy tax revenue is projected to decrease in Fiscal Year $175,000
$275,000
$375,000
$475,000
$575,000
$675,000
ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-16 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN 2024-25 following two fiscal years of stronger performance. Revenue is estimated conservatively for fiscal years 2025-26 and 2026-27 at less than projected consumer price index increases.
• Transient occupancy tax revenue declined dramatically in fiscal years 2019-20 and 2020-21 due, in large part, to the COVID-19 pandemic. • Transient occupancy tax revenue is expected to increase in connection with higher than normal demand during the 2028 Summer Olympics (July 14-30, 2028). That increase would be realized in Fiscal Year 2028-29. • The City’s transient occupancy tax base continues to be limited in size and largely dependent on a single transient occupancy tax producer.

Development Processing Fees Revenue
Development processing fees are collected by the City in order to recover the City’s reasonable costs of providing building, planning, encroachment, and grading services.
[Development Processing Fees Revenue
– Fiscal Years 2011-12 through 2026-27]
Budget Estimate
(Fiscal Year
2025-26)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2024-25)
Budget Estimate
(Fiscal Year
2026-27)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2025-26)
$887,000 1.3% $899,300 1.4%
$550,000
$630,000
$710,000
$790,000
$870,000
$950,000
ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-17 Summary of Significant Trends and Observations
• Development processing fees revenue will continue to cover the City’s reasonable costs of providing services. Since Fiscal Year 2014-15, the City has conducted an annual evaluation of the rationality and adequacy of its fees to cover the reasonable costs of providing services.

Interest Revenue
Interest revenue is comprised of earnings from financial investments made in accordance with the City’s Investment of Financial Assets Policy.

The Investment of Financial Assets Policy is intended to assist the City with the investment of financial assets in a manner that ensures adequate safety and liquidity, while maximizing yield (return) and complying with the requirements of California Government Code Section 53600 et seq.
[Interest Revenue – Fiscal Years 2011-12 through 2026-27] Budget Estimate
(Fiscal Year
2025-26)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2024-25)
Budget Estimate
(Fiscal Year
2026-27)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2025-26)
$395,000 -1.3% $372,000 -5.8%
Summary of Significant Trends and Observations
• Short-term interest rates declined dramatically in fiscal years 2019-20 and $0
$100,000
$200,000
$300,000
$400,000
$500,000
ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-18 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN 2020-21 due, in large part, to the COVID-19 pandemic. During that time, interest revenue decreased accordingly.
• Interest rates were increased by the Federal Reserve from March 2020 through September 2024 in an attempt to control inflation, and the City’s investable cash balance temporarily increased in fiscal years 2022-23 and 2023-24 due to the receipt of American Rescue Plan Act (Coronavirus Local Fiscal Recovery Funds) funds, resulting in significant increases in interest revenue.
• Interest revenue is expected to decline in fiscal years 2025-26 and 2026- 27 due to lower interest rates and a smaller investable cash balance following the expenditure of American Rescue Plan Act (Coronavirus Local Fiscal Recovery Funds) funds.

Miscellaneous Revenue
Miscellaneous revenue includes revenue collected as a result of agreements not accounted for in other revenue categories, reimbursements, and fines. [Miscellaneous Revenue – Fiscal Years 2011-12 through 2026-27] Budget Estimate
(Fiscal Year
2025-26)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2024-25)
Budget Estimate
(Fiscal Year
2026-27)
Percent Change
from Projected
Year-End Receipts
(Fiscal Year
2025-26)
$265,300 -0.3% $270,900 2.1%
$50,000
$150,000
$250,000
$350,000
$450,000
$550,000
ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-19 Summary of Significant Trends and Observations
• The solid waste handling services franchise agreement that was entered into with CR&R Incorporated effective January 1, 2022 requires the payment of biannual waste and recycling services reimbursements to assist with various City expenses. Those reimbursements are expected to continue to be the largest source of miscellaneous revenue, increasing by consumer price index increases capped at 5% per calendar year.

Reimbursements received in Fiscal Year 2024-25 totaled $186,211.52. • In Fiscal Year 2018-19, the City received a payment of $326,471 from the City of Laguna Beach as part of a transfer of the City’s California Public Utilities Commission Tariff Rule 20A allocation balance. That payment accounts for the significant increase in miscellaneous revenue in Fiscal Year 2018-19. Smaller payments related to other Rule 20A transfers were received from the City of Newport Beach in fiscal years 2019-20 and 2020-21. On June 3, 2021, the California Public Utilities Commission issued Decision 21-06-013 ("Phase 1 Decision Revising Electric Rule 20 and Enhancing Program Oversight") which, in part, banned most Rule 20A transfers. As a result, no additional Rule 20A revenue is anticipated.

GENERAL FUND SUMMARY – EXPENDITURES
General Fund operating expenditures for Fiscal Year 2025-26 are projected to be $8,394,328, or 3.5% more than the projection for Fiscal Year 2024-25. In Fiscal Year 2026-27, General Fund operating expenditures are projected to increase to $8,941,466, which reflects additional expenditures of $547,138, or 6.5%, over the budget for Fiscal Year 2025-26.

The primary causes of General Fund operating expenditure increases for both fiscal years are modest, inflationary-type increases for most line items, changes in personnel costs, and significant increases for law enforcement services.

An additional $2,420,000 for Fiscal Year 2025-26 and $670,000 for Fiscal Year 2026-27 is budgeted to support the following non-operating expenditures and transfers to the Capital Projects Fund:

Fiscal Year 2025-26
• Non-Operating Expenditures
o Automated License Plate Reader Deployment ($40,000)
o Building and Planning Records Digitization ($40,000)
o Emergency Operations Plan Update ($50,000)
ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-20 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN o General Plan Updates ($100,000)
o Information Technology & Cyber Security Account ($30,000) o Objective Design and Development Regulations ($50,000) o Public Safety Grant Program ($250,000)
TOTAL: $560,000
• Transfers to the Capital Projects Fund
o City Hall Complex Parking Lot Improvement Project ($50,000) o City Hall Refurbishment and Safety Project: Phase 5 ($1,600,000) o Pavement Management Plan Project (Eastbound Santa Maria Avenue between Santa Vittoria and Moulton Parkway) ($85,000) – will be reimbursed by the City of Laguna Hills
o Public Works Warehouse Project ($50,000)
o Transit Shelter and Street Furniture Project ($75,000) TOTAL: $1,860,000
GRAND TOTAL – FISCAL YEAR 2025-26: $2,420,000
Fiscal Year 2026-27
• Non-Operating Expenditures
o Building and Planning Records Digitization ($40,000)
o Information Technology & Cyber Security Account ($30,000) o Public Safety Grant Program ($250,000)
TOTAL: $320,000
• Transfers to the Capital Projects Fund
o Transit Shelter and Street Furniture Project ($350,000) TOTAL: $350,000
GRAND TOTAL – FISCAL YEAR 2026-27: $670,000
Expected Carryovers
• Unspent appropriations approved prior to July 1, 2025 are expected to be carried over to Fiscal Year 2025-26 for the following purposes, pursuant to Section 2.9.04(10) of City Administrative Policy 2.9:
o Information Technology & Cyber Security Account
ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-21 [General Fund Operating Expenditure Projections by Department or Purpose – Fiscal Years 2025-27]
General Fund Department or
Purpose
Percent of Adopted
Budget Estimate
(Fiscal Year 2025-26)
Percent of Adopted
Budget Estimate
(Fiscal Year 2026-27)
City Council 0.3% 0.3%
General Government 15.6% 15.8%
Administrative Services 7.1% 7.0%
Engineering & Infrastructure
Services 5.6% 5.5%
Planning & Environmental
Services 24.1% 23.5%
Public Safety Services 42.5% 43.4%
Operating Contribution to
Senior Mobility Fund 4.8% 4.5%
2025-26
City Council
General Government
Administrative Services
Engineering & Infrastructure Services
Planning & Environmental Services
Public Safety Services
Contribution to Senior Mobility Fund
2026-27
City Council
General Government
Administrative Services
Engineering & Infrastructure Services
Planning & Environmental Services
Public Safety Services
Contribution to Senior Mobility Fund
ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-22 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN Employee Salaries, Benefits, and Taxes
While employee salaries, benefits, and taxes relate to multiple departments within the General Fund, discussion is consolidated in this section for ease of reference. Additional organizational information is included in Chapter 2.0.

Salaries and Benefits
Compensation schedules and benefits are approved by the City Council at duly noticed public meetings. In addition to base salaries, full-time employees generally receive a monthly benefit allowance (which, irrespective of the cost to employees, limits the City’s contributions toward medical, dental, and vision coverage), paid time off, paid holidays, and retirement benefits.

During Fiscal Years 2023-25, employee benefits were modified as follows:
• The City provides a monthly benefit allowance to full-time and part-time employees which can be used for health insurance, dental insurance, vision insurance, health flexible spending, dependent care flexible spending, and/or up to $500 in taxable compensation (taxable compensation is only available to full-time employees hired prior to January 1, 2019). Effective January 1, 2024, the amount of the monthly benefit allowance was increased from $1,000 to $1,200 for full-time employees and from $800 to $960 for part-time employees. Effective January 1, 2025, the amount of the monthly benefit allowance was increased from $1,200 to $1,500 for full-time employees and from $960 to $1,200 for part-time employees.
• Prior to January 1, 2024, the City enrolled full-time and part-time employees in an employee assistance program that provides voluntary, confidential assistance to employees in working through various life challenges that may adversely affect job performance, health, and personal well-being. Enrollment costs were paid as a mandatory deduction from each employee’s monthly benefit allowance. Effective January 1, 2024, the employee assistance program was extended to limited part-time employees and the City began paying enrollment costs on behalf of all employees.
• Effective, January 1, 2024, Ceasar Chavez Day and Juneteenth National Independence Day were added as paid holidays for full-time and parttime employees. • Effective January 1, 2024, to avoid a single-day workweek preceding the paid Winter Holiday for full-time and part-time employees, the timing of the Winter Holiday was adjusted to specify that when December 24 falls ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-23 on a Tuesday, the Winter Holiday will be observed beginning on December 23.
• Effective January 1, 2024, paid bereavement leave and paid court leave were added for full-time and part-time employees
• Effective January 1, 2024, paid time off accrual and use policies for limited part-time employees were modified to comply with California Senate Bill 616 (Gonzalez, Chapter 309, Statutes of 2023). • Effective January 1, 2024, a second tier of technology allowances was added for employees who are regularly required to use their personal cellular telephone as part of the City’s multi-factor authentication and cyber security protocols ($25 per month).
• Effective July 1, 2025, building employees will be required to work on Martin Luther King, Jr. Day, Cesar Chavez Day, and Juneteenth National Independence Day. All full-time and part-time employees, except for the City Manager, will receive one hour of administrative leave (if exempt) or 1.5 times pay (if non-exempt) for every hour they are required to work on City-observed holidays.
• Effective July 1, 2025, a new educational assistance program will provide all employees who have been employed by the City for at least six months (including the City Manager, but excluding limited part-time employees who are not building employees), with nontaxable financial assistance for tuition, textbooks, and other educational expenses on a reimbursement basis. Maximum reimbursements will range from $1,050 to $5,250 per employee/calendar year, based on length of employment. • Effective July 1, 2025, employees who are temporarily assigned to a higher level job classification for 14 consecutive calendar days or more will receive acting status pay.
• Effective July 1, 2025, new policies will be added regarding the City Manager’s ability to grant unpaid leaves of absence to employees.

The most current employee compensation and benefits resolutions and the City Manager Employment Agreement are available at or from City Hall and on the City’s website (www.cityoflagunawoods.org > click on “City Council/ Employee Compensation & Benefits” in the footer on any page).

Except as noted, this budget does not contemplate significant changes to the compensation schedule or benefits for non-contract employees, nor to the terms of the City Manager Employment Agreement. It includes the employee ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-24 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN positions identified in Chapter 2.0 and allows for only minimal movement by employees within established compensation ranges.

California Public Employees’ Retirement System
Like many local governments in California, the City contracts with the California Public Employees’ Retirement System (“CalPERS”) to provide defined pension benefits for employees.

Qualified employees hired prior to January 1, 2013, or otherwise eligible pursuant to the Public Employees’ Pension Reform Act of 2013 (“PEPRA”), are considered “classic” pension plan members. Classic members are enrolled in a pension plan with a “2% at age 55” retirement formula. Though not required by law, classic members contribute 7% of their annual covered salary to their pension plan.

Qualified employees hired on or after January 1, 2013, and not otherwise eligible for “classic” pension plan enrollment, are considered “PEPRA” pension plan members. PEPRA members are enrolled in a pension plan with a “2% at age 62” retirement formula. PEPRA memberscontribute a variable percentage of their annual covered salary to their pension plan in an amount calculated in accordance with state law. The PEPRA employee contribution rate is 8.0% for Fiscal Year 2025-26 and may change for Fiscal Year 2026-27.

The City is required to make employer contributions to its pension plans that are based on a variety of assumptions including, but not limited to, rates of return on pooled investments managed by CalPERS. The difference between the sum of the City’s accumulated pension plan assets and the total projected cost of earned pension benefits is referred to as “unfunded accrued liability.” Paying Off Unfunded Accrued Liability
City Administrative Policy 2.9 calls for the consideration of lump sum payments to reduce unfunded accrued liability for pension plans at least as frequently as each biennial budget development process. It also establishes a goal of maintaining an at least 80% funded level for all pension plans.

Since May 2017, the City Council has approved periodic lump sum payments to reduce the unfunded accrued liability of its pension plans. Those contributions additionally help to reduce future employer contributions and mitigate potential future impacts of reductions in or variances from CalPERS’ discount rate (expected rate of return on pooled investments).

ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-25 [History of Lump Sum Payments to CalPERS]
Date of City Council Approval Total Lump Sum Payments
(all pension plans)
September 18, 2024 $96,448
October 18, 2023 $306,925
October 21, 2020 $29,970
October 16, 2019 $101,092
September 26, 2018 $137,455
May 17, 2017 $483,218
Note: No lump sum payments were necessary between the lump sum payments approved on October 21, 2020 and October 18, 2023, due to the City’s total liability being more than fully funded as a result of investment performance and prior contributions.

This budget does not include any additional lump sum payments. CalPERS’ next valuation reports will be released in August 2025, after which the City Council may consider making such payments.

Actuarial Valuations
CalPERS produces an annual valuation report for the City’s pension plans based on information available as of June 30 of the preceding year. The valuation reports include the annual required contributions from both the City and its employees for the next fiscal year, a projection of the annual required contributions for the following fiscal year, funding calculations, and related information.

On September 18, 2024, the City Council approved lump sum payments to pay off the total unfunded accrued liability of its pension plans as of the fiscal year ended June 30, 2023. Those lump sum payments have caused the City’s pension plans to be fully funded according to the most current actuarial valuations.

The City’s expenditure appropriations for employer contributions to CalPERS are based on the information contained in the most current valuation reports.

Current and prior valuation reports are available at or from City Hall and on the City’s website (www.cityoflagunawoods.org/pension-liabilities).

Prefunding Employer Contributions
On April 7, 2021, the City Council adopted two resolutions (Resolution Nos. 21- ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-26 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN 13 and 23-14) that enabled the City’s participation in the California Employers’ Pension Prefunding Trust (“CEPPT”). The CEPPT is established in the State of California’s Treasury for the purpose of allowing eligible public agencies to prefund required pension plan contributions.

Since January 2024, the City Council has approved periodic contributions to the CEPPT to prefund required pension contributions. Those contributions diversify the City’s investment portfolio and are invested in a manner intended to generate earnings to offset future lump sum payments to reduce the unfunded accrued liability of the City’s pension plans. [History of Contributions to the CEPPT]
Date of City Council Approval Total Contribution
December 18, 2024 $104,490
January 31, 2024 $163,555
On January 15, 2025, the City Council amended City Administrative Policy 2.9 to establish an initial goal of maintaining a minimum balance in the CEPPT of $670,000 (the sum of the five most recent lump sum payments made by the City to pay off the entirety of its then-current unfunded accrued liability for CalPERS pension plans) with suggested annual payments equal to 50% of the audited increase in the General Fund fund balance at the end of each fiscal year, beginning with Fiscal Year 2024-25. It is expected that the City Council will consider amending this budget to provide for such payments after each annual audit is completed for fiscal years 2024-25 and 2025-26.

Payroll Taxes – Employment Training Tax
The City is required to pay the State of California’s Employment Training Tax, which provides funds to train employees in targeted industries to improve the competitiveness of California businesses. The City pays a rate established by the State, which for calendar year 2025 is 0.1% on the first $7,000 of earnings.

This budget assumes the rate will remain the same in calendar year 2026.

Payroll Taxes – Social Security and Medicare
The City participates in Social Security and Medicare programs, which provide retirement and health benefits to qualified employees beginning as early as age 62. All employees (full-time, part-time, and limited part-time) pay the full employee contribution and the City pays an equivalent employer contribution, which for calendar year 2025 is 6.2% on the first $176,100 of earnings for Social Security and 1.45% on all earnings for Medicare. Total costs for Social Security ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-27 and Medicare are projected to be $145,700 for Fiscal Year 2025-26 and $152,328 for Fiscal Year 2026-27.

Payroll Taxes – State Unemployment Insurance
The City participates in the State of California’s Unemployment Insurance program, which provides temporary financial assistance to qualified persons who have separated from employment. The City pays a rate established by the State, which for calendar year 2025 is 1.5% on the first $7,000 of earnings.

This budget assumes the rate will remain the same in calendar year 2026.

Other-Post Employment Benefits (Retiree Medical)
As a member of the CalPERS health insurance program, the City is statutorily required to offset a portion of the cost of CalPERS health insurance premiums for qualified retired employees (“other post-employment benefits” or “OPEB”) at a minimum rate that is adjusted annually. Rates are established by state law with the monthly cost for calendar year 2025 totaling $158 per qualified retired employee. Retired employees pay the remainder of their premium costs.

In Fiscal Year 2015-16, the City established an irrevocable OPEB Trust Fund to prefund OPEB liabilities. The OPEB Trust Fund was established with an initial prefunding level equal to 80% of the then-current unfunded liability ($60,511).

While many employers use a “pay-as-you-go” formula to minimally fund OPEB liabilities, the establishment of an interest-bearing OPEB trust fund allows the City to proactively manage future costs and reduce unfunded liabilities.

An actuarial valuation completed in May 2018 calculated the City’s unfunded OPEB liability at $46,631 as of June 30, 2017. In June 2018, the City made a supplemental contribution to the OPEB Trust Fund in the amount of $23,812 to maintain a prefunding level equal to 80% of the projected benefits.

An actuarial valuation completed in June 2020 calculated the City’s unfunded OPEB liability at $51,013 as of June 30, 2019. In June 2020, the City made a supplemental contribution to the OPEB Trust Fund in the amount of $19,529 to maintain a prefunding level equal to 80% of the projected benefits.

An actuarial valuation completed in June 2022 calculated that the City had more than fully funded its OPEB liability and had a net asset of $243 as of June 30, 2021. The OPEB liability was fully funded through the OPEB Trust Fund.

An actuarial valuation completed in July 2024 calculated the City’s unfunded OPEB liability at $7,450 as of June 30, 2023. The OPEB liability is 94.6% funded through the OPEB Trust Fund according to the most current actuarial valuation.

ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-28 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN This budget does not include any additional contributions to the OPEB Trust Fund. The next actuarial study will be completed in Fiscal Year 2025-26, after which the City Council may consider making such contributions.

Law Enforcement Retirement and Other Post-Employment Benefits Agreements for law enforcement services with the County of Orange include certain employee retirement and OPEB-related expenses. While the City is not responsible for the County of Orange’s long-term retirement or OPEB liabilities, changes in the County of Orange’s contribution rates and actuarial valuations for the Orange County Employees Retirement System (“OCERS”) create a year-to-year budgetary risk exposure for the City. While retirement and OPEBrelated expenses have a material and generally upward impact on the City’s costs, the City does not have a vote in either the County of Orange’s or OCERS’ decision-making. The City’s ability to project future law enforcement costs is further limited as the County of Orange does not provide long-term projections that separately identify pension costs with amortized unfunded liabilities.

GENERAL FUND EXPENDITURES BY DEPARTMENT
For additional information on the role, responsibilities, and staffing for each City department, please refer to Chapter 2.0.

City Council Department
Notes and Notable Changes from Prior Years
• Monthly compensation reflects current elections by councilmembers.

Compensation is fixed at $300 per month, but may be waived at the discretion of each councilmember.
• No budget is provided for councilmember air travel.
• This budget includes lodging costs for all councilmembers to attend the California Joint Powers Insurance Authority’s Annual Risk Management Educational Forum each fiscal year.
• Funds are included for councilmembers to attend the:
o League of California Cities’ Annual Conference and Expo o League of California Cities’ Orange County Division meetings o Orange County Fire Authority’s Best & Bravest Dinner
o Orange County Sheriff’s Department’s Medal of Valor Luncheon A contingency is also included with the assumption that there may be ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-29 additional City Council travel, conference, and meeting costs.

General Government Department
Notes and Notable Changes from Prior Years
• Insurance costs vary from year to year based on actuarial studies of the California Joint Powers Insurance Authority’s claims experience. Funding requirements are allocated to each member of the insurance pool using loss experience and payroll, relative to other members. Insurance costs include policies for crime, liability, pollution legal liability, property, and workers’ compensation. In Fiscal Year 2025-26, insurance costs include a relatively large pool-wide increase in the primary liability program due to a combination of factors such as social inflation driving up the cost of settlements and jury awards, and increases in excess and reinsurance premiums. The Fiscal Year 2026-27 budget assumes continued increases. • Funds are included for the City’s annual dues for the:
o League of California Cities
o Orange County Council of Governments
o Orange County Local Agency Formation Commission
o Southern California Association of Governments
• Funds are included for staff memberships in professional organizations, including the:
o California Municipal Clerks Association (City Clerk)
o California Municipal Treasurers Association (City Manager) o Orange County City Manager Association (City Manager) • Memberships and dues budgets for Administrative Services Department and Planning & Environmental Services Department staff have been moved to new accounts in those departments.
• Mileage and parking budgets for Administrative Services Department, Engineering & Infrastructure Services Department, and Planning & Environmental Services Department staff have been moved to new accounts in those departments.
• This budget includes lodging costs for the City Manager to attend the California Joint Powers Insurance Authority’s Annual Risk Management Educational Forum in Fiscal Year 2026-27. The City Manager and other staff plan to commute to and from the Annual Risk Management Educational Forum in Fiscal Year 2025-26.

ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-30 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN • Funds are included for City Manager’s Office and City Clerk’s Office staff to attend meetings and conferences associated with memberships in professional organizations, as well as:
o League of California Cities’ webinars
o League of California Cities’ Orange County Division meetings o Orange County Fire Authority’s Best & Bravest Dinner
o Orange County Sheriff’s Department’s Medal of Valor Luncheon A contingency is also included with the assumption that there may be additional, as yet unknown, staff travel, conference, and meeting costs. • Travel, conferences, and meetings budgets for Administrative Services Department, Engineering & Infrastructure Services Department, and Planning & Environmental Services Department staff have been moved to new accounts in those departments.
• Funds are included for the General Municipal Election on November 7, 2028 (assumption is City Council election only; no local ballot measures). • Budgets for janitorial and maintenance services include both City Hall and the Public Library Building (City Hall and the Public Library Building are collectively referred to as the “City Hall Complex”). As required by the City’s public library lease agreement with the County of Orange, the County of Orange will reimburse the City for janitorial services and supplies provided for the public library and in connection with the County of Orange’s use of the outdoor activity room. Reimbursement revenue is accounted for as General Fund miscellaneous revenue. • The website services budget has been moved from the Administrative Services Department to the General Government Department. • This budget anticipates increases in costs associated with applicable agreements scheduled for competitive procurement in fiscal years 2025- 27 (please refer to Chapter 7.0).

Administrative Services Department
Notes and Notable Changes from Prior Years
• New accounts have been added to create department-specific budgets for the following, which were previously accounted for in the General Government Department: Membership and dues; mileage and parking; and, travel, conferences, and meetings.
• Funds are included for staff memberships in professional organizations, ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-31 including the:
o California Municipal Treasurers Association (Administrative Services Director/City Treasurer)
o California Society of Municipal Finance Officers (Administrative Services Director/City Treasurer and Accountant)
o Government Finance Officers Association (Administrative Services Director/City Treasurer and Accountant)
• The website services budget has been moved to the General Government Department.
• This budget anticipates increases in costs associated with applicable agreements scheduled for competitive procurement in fiscal years 2025- 27 (please refer to Chapter 7.0).

Engineering & Infrastructure Services Department
Notes and Notable Changes from Prior Years
• Funds are included to provide for as-needed engineering services that are not transportation-related. Most transportation-related engineering services costs are budgeted in special revenue funds.
• The City is required to expend at least $104,578 in Fiscal Year 2025-26 and $104,578 in Fiscal 2026-27 from its General Fund for transportation-related purposes in order to be eligible to receive funds from Orange County’s Measure M2 (OC Go) one-half cent transportation-related sales tax. This requirement is referred to as “maintenance of effort” or “MOE.” o The M2 MOE budget is slightly higher than the MOE requirement amount to allow for fluctuations in costs and to provide a buffer in the event the City and Orange County Transportation Authority (in its role as Measure M2 administrator) differ as to cost eligibility. o The MOE requirement amount may increase on July 1, 2029 and every three years thereafter based on the California Department of Transportation’s Construction Cost Index for the preceding three calendar years, provided that the Construction Cost Indexbased increase cannot exceed the City’s General Fund revenue growth rate during the update period.
• This budget anticipates increases in costs associated with applicable agreements scheduled for competitive procurement in fiscal years 2025- 27 (please refer to Chapter 7.0).

ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-32 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN Planning & Environmental Services Department
Notes and Notable Changes from Prior Years
• This budget includes the “in-sourcing” of building and code enforcement functions that were formerly performed by consultants and the addition of a new Planning & Environmental Services Director position to manage and provide oversight for those and other functions.

Those organizational changes account for the significant decreases in the building services and code enforcement services budgets, as well as the significant increases in the compensation and benefits budgets. • Building plan review and other building-related contract services have been shifted from the building services account to a new building services, contract services account.
• A new building services, supplies/other account has been added. • A new fleet services account has been added with a budget for costs associated with the four 2025 Chevrolet Equinox EVs that have been purchased for use by building inspectors and other department staff.

The fleet services budget includes maintenance, monitoring, and washing costs. Charging costs will be accounted for in the Mobile Source Reduction Fund for the first three years. Charging costs will become General Fund expenses in May 2028 (Fiscal Year 2027-28). • The City transitioned from a primarily paper-based to electronic building permitting system on November 18, 2019. The electronic system requires ongoing software and software implementation services that are funded in this budget. Those costs are also considered in the annual Building, Planning, Encroachment, and Grading Permit Fee Study.
• Funds are included to provide for as-needed planning services that are not related to reimbursable projects, including implementation of the General Plan Housing Element, annual compliance reviews of San Sebastian Apartment’s affordable housing program, and monitoring of the Orange County Transportation Authority’s Interstate 5/El Toro Road Interchange Project and other external development projects with the potential to impact Laguna Woods.
• This budget includes funding for an agreement approved by the City Council on December 21, 2022 for the procurement of mulch from the Golden Rain Foundation of Laguna Woods in connection with California Senate Bill 1383 (Lara, Chapter 395, Statutes of 2016). The cost of the agreement is $10,890 for Fiscal Year 2025-26 and $10,890 for Fiscal Year 2026-27, for a total of $21,780 payable to the Golden Rain Foundation of ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-33 Laguna Woods from this budget. The Fiscal Year 2025-26 payment is accounted for in the State of California Grants Fund.
• Water quality (stormwater) costs continue to increase, with most of the increase attributable to activities required to comply with orders related to the State Water Resources Control Board’s Statewide Water Quality Control Plans for Trash, as well as pending reissuance of National Pollutant Discharge Elimination System (“NPDES”) permits and continued implementation of the South Orange County Watershed Management Area’s Water Quality Improvement Plan.
• New accounts have been added to create department-specific budgets for the following, which were previously accounted for in the General Government Department: Membership and dues; mileage and parking; and, travel, conferences, and meetings.
• Funds are included for staff memberships in professional organizations, including the:
o American Planning Association (Planning & Environmental Services Director and Development Manager)
o California Association of Code Enforcement Officers (Planning & Environmental Services Director, Development Manager, and Code Enforcement Officer)
o California Building Officials Association (Building Official) • This budget anticipates increases in costs associated with applicable agreements scheduled for competitive procurement in fiscal years 2025- 27 (please refer to Chapter 7.0).

Public Safety Services Department
Notes and Notable Changes from Prior Years
• The current agreement with the City of Laguna Beach for animal control and shelter services will end on June 30, 2026. Service costs are $124,392 for Fiscal Year 2025-26 and as yet unknown for Fiscal Year 2026-27 (a contingency is included to offset potential future increases in costs). • The City’s agreement with the County of Orange for law enforcement services in Fiscal Year 2025-26 includes an annual cost of $3,588,995 (an increase of $206,818, or approximately 6.11%, from Fiscal Year 2024-25; and 42.76% of the Fiscal Year 2025-26 General Fund operating budget). o The agreement includes:
 “Direct Purchase” Positions:

ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-34 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN • 1.34 full-time equivalent (“FTE”) Sergeant (shared with Aliso Viejo and Laguna Hills)
• 0.50 FTE Investigator (shared with Aliso Viejo)
• 6.00 FTE Deputy Sheriff II
 Regional/Shared Positions:
• 13.25% of 14.90 FTE positions assigned to traffic, auto theft, directed enforcement, and courts
 Charges for services/supplies, transportation, indirect costs (e.g., overhead), and other additional costs
o Salaries and benefits are 74.26% ($2,664,994) of total costs. • The law enforcement services budget assumes:
o A funding offset from the State of California’s Supplemental Law Enforcement Services Account (“SLESA”) of $231,600 in each fiscal year. SLESA funds are accounted for in a special revenue fund. o A cost savings of one-half of 1% of each fiscal year’s base law enforcement services agreement cost, due to early payment discounts offered by the County of Orange
• The primary cause of increases in law enforcement costs continues to be labor agreements negotiated by the County of Orange and approved by the Orange County Board of Supervisors. Those labor agreements expire in June 2026. Due to the Orange County Board of Supervisors’ past proclivity to approve costly labor agreements without consultation with cities, the law enforcement services budget includes a contingency in each fiscal year to offset potential future increases in costs. No new law enforcement services are assumed or anticipated.
[Historical Law Enforcement Contract Costs
– Fiscal Years 2020-21 through 2025-26]
Fiscal
Year
Contract Cost
(Final
Adjusted)
Change from
Prior Fiscal Year
Change
from Fiscal
Year 2020-21
Credit at Fiscal
Year End (A)
2025-26 $3,588,995 (B) 6.11% ($206,818) 23.72% TBD
2024-25 $3,382,177 7.34% ($231,382) 16.59% TBD
2023-24 $3,150,795 -0.01% (-$407) 8.61% ($64,547.23)
2022-23 $3,151,202 2.69% ($82,670) 8.63% ($232,061.67)
2021-22 $3,068,532 5.78% ($167,602) 5.78% ($76,631.22) (C) ITEM 9.1 - Attachment A DRAFT
CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN PAGE 5.0-35 2020-21 $2,900,930 - - ($7,906.00)
(A) The City does not budget assuming receipt of fiscal year end credits. (B) The Fiscal Year 2025-26 contract cost is as of July 1, 2025. (C) The Fiscal Year 2021-22 credit includes $11,739.07 due to the American Rescue Plan Act. • Funds are included for other law enforcement-related costs paid outside of the law enforcement services agreement, including:
o 800 MHz Countywide Coordinated Communication System
o Automated Fingerprint Identification System
o Automated license plate readers
• Funds are included to continue the emotional and practical support services provided by Trauma Intervention Programs, Inc.

General Fund Operating Contribution to Senior Mobility Fund Notes and Notable Changes from Prior Years
• This budget includes transfers from the General Fund to the Senior Mobility Fund in the amount of $406,052 each fiscal year. Those transfers will support the operation of the Senior Mobility Program.

Information Technology & Cyber Security Account
Notes and Notable Changes from Prior Years
• The Information Technology & Cyber Security Account was added in Fiscal Year 2019-20 to address limited-term and extraordinary information technology and cyber security needs. Information Technology & Cyber Security Account expenditures are considered to be non-operating. $30,000 is budgeted in each fiscal year.

CAPITAL PROJECTS FUND REVENUE
The Capital Projects Fund is used to account for resources that are reserved for capital improvement purposes. All Capital Projects Fund resources come from transfers in from the unassigned General Fund balance.

Capital Projects Fund transfers in from the General Fund for Fiscal Year 2025-26 are estimated to be $1,860,000, or 129.9% more than year-end projections for Fiscal Year 2024-25. In Fiscal Year 2026-27, Capital Projects Fund transfers in from the General Fund are estimated to be $350,000, which reflects a decrease of $1,510,000, or 81.2%, from the Fiscal Year 2025-26 estimate.

ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-36 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN Additional funding for capital improvement purposes is budgeted in special revenue funds and discussed separately in Chapter 6.0.

CAPITAL PROJECTS FUND EXPENDITURES
Capital Projects Fund expenditures are considered to be non-operating and projected to be $1,860,000 for Fiscal Year 2025-26 and $350,000 for Fiscal Year 2026-27. All expenditures relate to the Capital Improvement Program projects listed below. For additional information, please refer to Chapter 8.0.

Fiscal Year 2025-26
o City Hall Complex Parking Lot Improvement Project ($50,000) o City Hall Refurbishment and Safety Project: Phase 5 ($1,600,000) o Pavement Management Plan Project (Eastbound Santa Maria Avenue between Santa Vittoria and Moulton Parkway) ($85,000) – will be reimbursed by the City of Laguna Hills
o Public Works Warehouse Project ($50,000)
o Transit Shelter and Street Furniture Project ($75,000) TOTAL: $1,860,000
Fiscal Year 2026-27
o Transit Shelter and Street Furniture Project ($350,000) TOTAL: $350,000
Expected Carryovers
• Unspent appropriations approved prior to July 1, 2025 are expected to be carried over to Fiscal Year 2025-26 for the following projects, pursuant to Section 2.9.04(10) of City Administrative Policy 2.9:
o City Centre Park Enhancement Project
o City Hall Refurbishment and Safety Project: Phase 4
o City Hall Refurbishment and Safety Project: Phase 5
o Paseo De Valencia – Moulton Parkway Confluence Bypass Corridor Project
o Woods End Wilderness Preserve Trail Drainage and Improvement Project
ITEM 9.1 - Attachment A DRAFT
Fiscal Year 2019-20 Fiscal Year 2020-21 Fiscal Year 2021-22 Fiscal Year 2022-23 Fiscal Year 2023-24 Fiscal Year 2024-25 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Line Item Actual Actual Actual Actual Actual Budget Projection Budget Budget

GENERAL FUND GROUP
General Fund
Property Tax 2,767,653 3,057,124 3,047,329 3,172,659 3,388,708 3,405,200 3,568,477 3,705,800 3,862,400 Property Transfer Tax 85,478 116,657 139,357 110,361 128,203 114,900 130,000 130,000 133,100 Sales Tax 957,549 1,010,418 1,156,470 1,189,614 1,103,571 1,233,000 1,215,100 1,239,000 1,285,800 Cannabis Business Tax Collection Began in Fiscal Year 2023-24 37,380 - 1,082,600 1,200,000 1,200,000 Franchise Fees 699,250 667,091 675,108 707,654 813,820 753,100 876,501 883,200 892,500 Transient Occupancy Tax 349,660 254,371 465,867 581,921 598,188 620,000 587,100 597,900 609,200 Development Processing Fees 671,039 682,913 815,005 891,684 885,158 827,400 875,324 887,000 899,300 Interest 189,379 100,503 83,686 290,865 464,254 340,000 400,000 395,000 372,000 Miscellaneous:

Regular 254,585 188,198 193,651 311,354 368,296 213,800 266,100 265,300 270,900 One-Time Rule 20A Transfer 19,227 30,747 - - - - - - -
TOTAL GENERAL FUND (ALL REVENUE) 5,993,820 6,108,022 6,576,473 7,256,112 7,787,578 7,507,400 9,001,202 9,303,200 9,525,200 Less: One-Time Rule 20A Transfer (19,227) (30,747) - - - - - - - TOTAL GENERAL FUND (ONGOING REVENUE) 5,974,593 6,077,275 6,576,473 7,256,112 7,787,578 7,507,400 9,001,202 9,303,200 9,525,200 Capital Projects Fund
Intergovernmental 7,993 - - - - - - - -
Interest 8,046 7,244 6,391 16,667 31,691 - 69,077 - -
TOTAL CAPITAL PROJECTS FUND 16,039 7,244 6,391 16,667 31,691 - 69,077 - - TOTAL GENERAL FUND GROUP (ALL REVENUE) 6,009,859 6,115,266 6,582,864 7,272,779 7,819,269 7,507,400 9,070,279 9,303,200 9,525,200

CITY OF LAGUNA WOODS
Revenue Summary - General Fund
Fiscal Years 2025-27 Budget & Work Plan
PAGE 5.0-37
ITEM 9.1 - Attachment A DRAFT
PAGE 5.0-38 CITY OF LAGUNA WOODS FISCAL YEARS 2025-27 BUDGET & WORK PLAN This page is intentionally blank.

ITEM 9.1 - Attachment A DRAFT
Fiscal Year 2019-20 Fiscal Year 2020-21 Fiscal Year 2021-22 Fiscal Year 2022-23 Fiscal Year 2023-24 Fiscal Year 2024-25 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Line Item Actual Actual Actual Actual Actual Budget Projection Budget Budget

GENERAL FUND
General Expenses
Mileage and Parking - - - - 4 500 62 250 250
Travel, Conferences, and Meetings 262 - - 2,734 2,687 5,130 5,130 6,415 6,665 Compensation
Monthly Compensation 14,400 13,800 14,400 14,700 14,400 14,400 14,700 14,400 14,400 Payroll Taxes 1,102 1,056 1,106 1,125 1,102 1,102 1,125 1,102 1,102 Total City Council 15,764 14,856 15,506 18,559 18,193 21,132 21,017 22,167 22,417 General Expenses
Community Outreach 728 1,149 786 557 2,919 2,000 3,188 3,129 3,285 SB 2557 Property Tax Admin Fee - - - 1,940 1,979 2,000 2,775 3,000 3,000 Insurance 66,305 68,182 49,011 71,984 71,912 73,855 72,998 85,035 93,858 Legal Services 141,311 79,559 193,287 101,231 179,258 103,971 102,058 125,000 125,000 Meeting Accessibility and Broadcast Services 2,800 3,800 4,600 5,400 15,529 15,250 12,426 15,420 19,405 Memberships and Dues 9,661 8,877 9,727 11,503 12,135 24,190 24,190 20,681 22,048 Mileage and Parking 963 602 1,328 1,969 1,940 500 2,000 500 510 Office Equipment and Maintenance 6,613 5,702 7,182 9,500 10,075 10,071 8,299 9,215 9,400 Office Supplies and Activities 7,822 9,636 8,139 7,743 9,737 10,000 12,918 20,000 21,000 Postage and Mailing (42) 1,757 914 1,711 2,672 2,000 1,385 2,000 2,040 Printing 483 253 1,578 95 520 750 565 750 765
Public Notices 7,005 8,910 6,125 6,556 23,858 16,700 16,629 20,000 21,000 Records Management Services 3,552 6,279 5,043 7,443 5,637 12,806 12,806 12,452 13,068 Travel, Conferences, and Meetings 1,083 550 1,478 1,753 1,618 3,035 1,256 1,045 1,958 Website Services - - - - - - - 29,445 30,867
Other Projects and Services 22,379 20,040 53,876 54,756 30,578 28,257 24,372 28,120 29,595 Indirect Costs Allocation - - - (2,707) - - - - -
Election Expenses
City Council Election - 24,443 - 37,534 - 35,000 36,204 - 46,948 City Hall Expenses
Janitorial Services, City Hall Complex 12,679 26,994 30,620 30,285 26,368 39,723 39,191 74,936 76,664 Maintenance, City Hall Complex 52,067 83,823 127,587 79,992 126,258 91,295 87,420 94,641 101,601 Telephones, City Hall 24,420 31,105 33,790 47,297 26,508 10,200 11,796 12,180 12,798 Utilities, Electric, City Hall Complex 20,130 23,013 26,985 29,860 35,375 33,000 40,650 42,683 44,817 Utilities, Gas, City Hall Complex 436 718 979 4,002 685 3,250 757 795 835 Utilities, Internet, City Hall - - 11,426 9,361 10,923 11,348 9,569 10,568 11,082 Utilities, Water, City Hall Complex 1,953 1,967 1,966 2,615 2,752 4,904 3,380 3,718 4,090 Compensation & Benefits
Salaries, Full-time 312,191 312,140 309,971 278,585 326,742 425,979 425,978 454,180 465,379 Salaries, Contra Acct. (6,661) (23,594) (19,784) (10,273) (4,769) (3,295) (3,294) - - Salaries, Part-time 9,288 192 - 41,586 51,236 52,772 49,991 57,200 65,000 Fringe Benefits 32,341 32,725 31,271 24,750 30,295 48,750 48,749 54,000 54,000 Supplemental Allowances 1,959 1,800 2,754 4,054 14,772 18,408 18,408 32,958 32,958 Payroll Taxes 21,736 21,212 21,000 21,899 26,756 33,994 34,232 37,773 38,965 Retirement (Employer Contribution) 30,989 33,065 33,485 35,797 39,685 47,278 48,972 51,446 52,552 Non-Operating - Lump Sum Payments (see detail below) 101,092 29,970 - - 306,925 200,938 200,938 - - Benefit Administration 1,636 1,934 1,927 1,766 2,652 2,125 3,158 4,095 4,153 Retiree Medical (Employer Contribution) 6,437 5,076 5,256 5,400 5,544 5,544 5,670 5,724 5,796 Non-Operating - OPEB Trust Contribution (see detail below) 19,529 - - - - - - - Total General Government 912,885 821,879 962,307 925,945 1,399,074 1,366,598 1,359,634 1,312,689 1,414,437 General Expenses
Audit Services 22,200 32,300 21,500 25,500 27,218 30,000 39,691 43,060 44,600 Information Technology Services 46,390 76,790 72,315 80,925 74,456 87,426 86,356 94,992 99,742 Finance and Payroll Services 147,140 50,603 70,123 50,632 55,506 71,990 67,108 73,819 77,510 Card Processing Fees 604 6,097 8,300 17,758 26,125 20,000 16,911 20,000 20,000 Memberships and Dues - - - - - - - 616 6,648
Mileage and Parking - - - - - - - 500 510
Travel, Conferences, and Meetings - - - - - - - 1,000 1,020 Website Services 5,167 6,180 4,924 5,400 23,509 24,158 24,118 - - Other Projects & Services 5,357 199 232 - - 2,500 - - - Compensation & Benefits
Salaries, Full-time 137,965 201,928 202,758 219,894 231,829 237,199 241,754 253,973 266,672

CITY OF LAGUNA WOODS
Expenditures Detail - General Fund
City Council
General Government
Administrative Services
Fiscal Years 2025-27 Budget & Work Plan
PAGE 5.0-39
ITEM 9.1 - Attachment A DRAFT
Fiscal Year 2019-20 Fiscal Year 2020-21 Fiscal Year 2021-22 Fiscal Year 2022-23 Fiscal Year 2023-24 Fiscal Year 2024-25 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Line Item Actual Actual Actual Actual Actual Budget Projection Budget Budget

CITY OF LAGUNA WOODS
Expenditures Detail - General Fund
Fiscal Years 2025-27 Budget & Work Plan
Salaries, Contra Acct. (3,818) (2,943) (3,652) (4,133) (3,638) - (2,084) - - Fringe Benefits 23,390 33,079 24,459 33,099 36,590 45,026 45,025 50,400 50,400 Supplemental Allowances - - 954 1,854 2,304 2,154 2,754 15,879 15,879 Payroll Taxes 10,841 15,178 15,278 16,282 17,046 21,328 18,130 19,765 20,736 Retirement (Employer Contribution) 10,574 15,916 14,789 16,155 18,488 18,140 19,582 19,931 20,826 Total Administrative Services 405,810 435,327 431,980 463,367 509,433 559,921 559,345 593,935 624,543 General Expenses
Engineering Services 56,066 10,015 10,352 7,986 34,348 54,715 54,711 65,000 66,750 Non-Operating (see detail below) 14,924 22,936 - - - - - - - Landscaping Services 66,759 74,234 76,104 74,940 64,524 95,100 95,001 82,838 89,745 Street Maintenance - - 881 - - - - - -
Traffic Signal Maintenance - - 6,628 - - - - - -
Mileage and Parking - - - - - - - 2,000 2,040
M2 Maintenance of Effort 102,314 104,578 135,845 134,770 161,543 138,900 138,845 114,740 119,745 Travel, Conferences, and Meetings - - - - - - - 500 510 Other Projects & Services - - - - - 1,050 1,050 - -
Utilities
Utilities, Street Lights, Residential 22,005 20,887 24,208 35,429 37,031 55,800 55,776 57,200 59,910 Compensation & Benefits
Salaries, Full-time 78,163 77,864 80,093 84,195 91,138 101,686 101,654 106,328 111,644 Less: M2 Maintenance of Effort (32,118) (27,646) (33,258) (40,901) (48,786) (61,500) (61,348) - - Fringe Benefits 12,000 12,000 12,000 12,000 13,210 16,225 16,221 18,000 18,000 Supplemental Allowances 795 954 954 1,854 2,154 2,154 2,154 7,404 7,404 Payroll Taxes 6,398 6,160 6,330 6,835 7,494 8,297 8,155 8,246 8,653 Retirement (Employer Contribution) 5,813 5,838 5,883 6,171 7,255 8,238 8,236 8,344 8,719 Total Engineering & Infrastructure Services 333,119 307,820 326,020 323,279 369,911 420,665 420,455 470,600 493,120 General Expenses
Building Services 586,339 706,984 814,665 851,531 1,050,039 1,105,296 1,114,625 - - Non-Operating (see detail below) 2,537 17,463 19,982 6,457 22,637 65,906 20,641 20,000 20,000 Building Services, Contract Services - - - - - - - 104,500 114,950 Building Services, Printing 585 1,951 939 1,322 1,700 2,000 1,750 2,000 2,100 Building Services, Publications 1,439 - - 1,548 - - - - - Building Services, Software - - 33,625 59,813 38,795 66,632 72,917 98,058 101,808 Building Services, State Fees - - - 7,515 7,785 5,140 5,059 7,200 7,560 Building Services, Supplies/Other - - - - - - - 7,724 7,956 Code Enforcement Services 28,674 36,839 32,910 29,340 105,374 76,310 98,868 1,600 1,680 Fleet Services - - - - - - - 11,864 12,308
Membership and Dues - - - - - - - 1,951 2,050
Mileage and Parking - - - - - - - 500 510
Planning Services 22,233 54,393 51,228 87,852 149,433 64,100 64,072 138,125 139,438 Non-Operating (see detail below) 34,290 15,710 - - - - - 170,000 20,000 Travel, Conferences, and Meetings - - - - - - - 2,000 2,000 Community Waste Events and Collections 37,645 35,059 56,546 68,276 56,357 53,296 53,279 66,180 72,935 Waste Management Services 21,883 37,036 39,706 20,321 9,356 9,724 9,700 14,300 25,180 Water Quality Services 123,365 87,091 102,511 98,289 136,000 134,566 133,871 150,030 129,557 Compensation & Benefits
Salaries, Full-time 108,897 154,210 151,828 168,692 111,358 186,237 190,541 1,006,320 1,056,636 Salaries, Contra. (9,505) (13,509) (9,073) (19,098) (4,324) (3,725) (3,723) - - Salaries, Part-time - - - - - - - 54,432 57,154
Fringe Benefits 13,937 21,943 23,607 23,756 16,779 24,000 28,069 162,000 162,000 Supplemental Allowances - - 1,908 1,908 1,272 1,908 1,749 24,240 24,240 Payroll Taxes 9,021 12,484 12,459 13,739 8,837 14,356 14,352 82,268 86,325 Retirement (Employer Contribution) 11,408 18,077 16,970 19,144 14,690 19,455 19,420 86,474 90,493 Total Planning & Environmental Services 992,748 1,185,731 1,349,811 1,440,405 1,726,088 1,825,201 1,825,190 2,211,766 2,136,880 General Expenses
Animal Services 113,100 109,046 111,168 113,121 115,094 125,604 125,604 124,392 149,271 Law Enforcement Services 2,635,462 2,741,718 2,838,642 2,759,517 2,915,664 3,154,275 3,154,242 3,399,356 3,689,508 Other Public Safety Services 6,039 6,985 3,661 2,050 3,893 40,959 40,958 43,371 45,238 Non-Operating (see detail below) - - - - 33,060 6,940 3,740 340,000 250,000 Total Public Safety Services 2,754,601 2,857,749 2,953,471 2,874,688 3,067,711 3,327,778 3,324,544 3,907,119 4,134,017 Engineering & Infrastructure Services
Planning & Environmental Services
Public Safety Services
PAGE 5.0-40
ITEM 9.1 - Attachment A DRAFT
Fiscal Year 2019-20 Fiscal Year 2020-21 Fiscal Year 2021-22 Fiscal Year 2022-23 Fiscal Year 2023-24 Fiscal Year 2024-25 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Line Item Actual Actual Actual Actual Actual Budget Projection Budget Budget

CITY OF LAGUNA WOODS
Expenditures Detail - General Fund
Fiscal Years 2025-27 Budget & Work Plan
General Expenses
Senior Mobility Program - - - - - 580,000 580,000 406,052 406,052 Total General Fund Operating Contribution to Senior Mobility Fund - - - - - 580,000 580,000 406,052 406,052 General Expenses
Non-Operating (see detail below) 130,000 45,000 20,640 4,359 899 24,101 23,232 30,000 30,000 Total Information Technology & Cyber Security Account 130,000 45,000 20,640 4,359 899 24,101 23,232 30,000 30,000 Subtotal Operating Expenditures 5,242,555 5,537,283 6,019,113 6,039,786 6,727,788 7,247,511 7,284,866 8,394,328 8,941,466 Subtotal Non-Operating Expenditures 302,372 131,079 40,622 10,816 363,521 297,885 248,551 560,000 320,000 TOTAL GENERAL FUND (ALL EXPENDITURES) 5,544,927 5,668,362 6,059,735 6,050,602 7,091,309 7,545,396 7,533,417 8,954,328 9,261,466

CAPITAL PROJECTS FUND
Capital Projects (see detail below) 327,534 252,316 164,043 603,367 189,969 1,644,668 809,098 1,860,000 350,000 TOTAL CAPITAL PROJECTS FUND 327,534 252,316 164,043 603,367 189,969 1,644,668 809,098 1,860,000 350,000 TOTAL ALL GENERAL FUND GROUP (ALL EXPENDITURES) 5,872,461 5,920,678 6,223,778 6,653,969 7,281,278 9,190,065 8,342,515 10,814,328 9,611,466 CalPERS Other Post-Employment Benefits (OPEB) Trust Contribution 19,529 - - - - - - - - CalPERS Retirement Unfunded Accrued Liability Lump Sum Payments 101,092 29,970 - - 306,925 200,938 200,938 - - 14,924 - - - - - - - -
- 22,936 - - - - - - -
Building and Planning Records Digitization - - - - - - - 40,000 40,000 Building Permitting Records Digitization 2,537 17,463 19,982 6,457 22,637 65,906 20,641 - - 34,290 15,710 - - - - - - -
- - - - - - - 100,000 -
- - - - - - - 50,000 -
- - - - - - - 40,000 -
- - - - 33,060 6,940 3,740 50,000 -
- - - - - - - 250,000 250,000
130,000 45,000 20,640 4,359 899 24,101 23,232 30,000 30,000 302,372 131,079 40,622 10,816 363,521 297,885 248,551 560,000 320,000 83,898 - - - - - -
7,925 - - - - - -
- - - - - 16,052 16,052
Circulation Improvement Project - Fiscal Year 2024-25 - - - - - 31,604 11,572 City Centre Park Enhancement Project - - - - - 125,000 8,118 City Hall Complex Parking Lot Improvement Project - - - - - - - 50,000 - 147,882 89,815 125,784 423,275 83,523 - - - -
59,593 - - - - - - - -
20,243 161,967 - - - - - - -

PUBLIC SAFETY SERVICES
Emergency Operations Plan Update
Americans with Disabilities Act (ADA) Pedestrian Accessibility Improvement Project: Phase 3
Automated License Plate Reader Deployment
TOTAL

INFORMATION TECHNOLOGY & CYBER SECURITY ACCOUNT
Expenditures are intended to address limited-term and extraordinary information technology and cyber security needs. Expenditures may include, but are not necessarily limited to, hardware, software, and equipment purchase and installation; network, data, and physical asset protection, redundancy, connectivity, and interoperability improvement; software optimization and workflow improvement; strategic planning; policy and procedure development; cyber security assessment; and, incident response and recovery.

Expenditures for routine (“day-to-day”) information technology consulting services, routine Internet and telecommunications services, and software license agreement and maintenance contract renewals beyond initial terms, are not permitted.

City Hall Refurbishment and Safety Project: Phase 2 (Design and Construction)
Capital Projects Fund Detail for Capital Projects
Americans with Disabilities Act (ADA) Pedestrian Accessibility Improvement Project: Phase 8
City Hall Refurbishment and Safety Project: Phase 1 (Construction) "A Place for Paws" Dog Park Relocation Project
City Hall/Public Library Project
General Fund Operating Contribution to Senior Mobility Fund General Plan Updates
Objective Design and Development Regulations
Public Safety Grant Program
Information Technology & Cyber Security Account

ENGINEERING & INFRASTRUCTURE SERVICES
El Toro Road Drainage/Localized Flooding Analysis
Golf Cart Path/Low-Speed Vehicle Crossing Zone Signage
General Plan Comprehensive Update

PLANNING & ENVIRONMENTAL SERVICES
Non-Operating Detail

GENERAL GOVERNMENT
PAGE 5.0-41
ITEM 9.1 - Attachment A DRAFT
Fiscal Year 2019-20 Fiscal Year 2020-21 Fiscal Year 2021-22 Fiscal Year 2022-23 Fiscal Year 2023-24 Fiscal Year 2024-25 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Line Item Actual Actual Actual Actual Actual Budget Projection Budget Budget

CITY OF LAGUNA WOODS
Expenditures Detail - General Fund
Fiscal Years 2025-27 Budget & Work Plan
- - 18,259 180,092 - - - - -
- - - - 45,683 876,799 504,255 - -
- - - - 35,030 49,970 19,569 1,600,000 -
- 534 - - - - - - -
El Toro Road and Moulton Parkway Water Quality Treatment Project - - - - - 90,768 82,124 - - 1,204 - - - - - - - -
6,789 - - - - - - - -
- - - - - 109,946 - - -
- - - - - - - 85,000 -
Public Works Warehouse Project - - - - - - - 50,000 -
- - - - - 273,250 124,349 - -
- - 20,000 - - - - - -
Transit Shelter and Street Furniture Project - - - - - - - 75,000 350,000 - - - - 25,733 71,279 43,060 - -
TOTAL 327,534 252,316 164,043 603,367 189,969 1,644,668 809,099 1,860,000 350,000 City Hall Refurbishment and Safety Project: Phase 5
Ridge Route Drive Landscape Project
Paseo de Valencia-Moulton Parkway Bypass Corridor
Woods End Wilderness Preserve Trail Drainage and Improvement Project El Toro Road Traffic Signal Synchronization Project
City Hall Refurbishment and Safety Project: Phase 3
Moulton Parkway Traffic Signal Synchronization Project
City-maintained Catch Basins Full Capture Systems Retrofit Project City Hall Refurbishment and Safety Project: Phase 4
Ridge Route Drive Drainage Repair Project
Pavement Management Plan Project (Eastbound Santa Maria Avenue between Santa Vittoria and Moulton Parkway)
PAGE 5.0-42
ITEM 9.1 - Attachment A DRAFT