City weighs options for extra revenue including open space

The Laguna Beach City Council was both generous and frugal as it indicated its top priorities during the annual budget workshop Tuesday.

City staff reported a favorable financial outlook as the council prepares to a adopt a two-year budget June 16. Laguna’s proposed budget is $79.7 million for the 2015-16 fiscal year and $76.9 million in 2016-17. It maintains existing services while keeping an extra 20% in reserves.

The general fund, the city’s primary operating fund, would be $53.4 million for 2015-16 and $54.2 million in 2016-17.

Tuesday’s workshop allowed the council and public to weigh in on suggested purchases using the money left after expenses — $1.3 million in annual receipts and an additional $1.6 million.

Key priorities for the council included paying down the city’s unfunded pension liability, clearing enough brush within a 21-acre swath of Nyes and Oro canyons to protect homes from wildfires and allotting funds for future open-space purchases.

The council unanimously supported paying $1.2 million toward unfunded pensions for the city’s public safety employees. This contribution, combined with $1.4 million allotted toward municipal employees’ pensions last year, would help the city toward its goal of paying down the liability faster, thus saving $9.3 million in interest and other costs over the next 30 years, according to a city staff report.

In the case of the open space and brush clearing, the council suggested setting aside one-time contributions but not commiting to ongoing payments.

Council members agreed to allocate $300,000 next year to acquire open space, though the exact area was not identified.

On the prospect of creating a full-time emergency preparedness coordinator position, opinions diverged.

The person would manage and expand the city’s Community Emergency Response Team, or CERT, a group of volunteers trained to assist after disasters and work with various agencies such as the Laguna Beach Unified School District on their emergency plans.

The full-time position would cost the city $117,000 yearly. Council members asked City Manager John Pietig to return with staffing options, such as the cost for a part-time position.

Pietig said the full-time position was not a top priority.

“A lot of times they sit around looking for things to do,” Pietig said. “On the other hand, the [city’s] Emergency Disaster Preparedness Committee would probably create things to do.”

Committee member Matt Lawson offered support for the position.

“The 23,000 of us who live here are an endangered species,” Lawson said, suggesting that police and fire personnel might be stretched thin immediately after a fire or flood. “We are the only coastal city that doesn’t have a full-time emergency manager. There is no [chance] someone will be here to check on us.”

Laguna Beach Seniors asked for $125,000 to $150,000 in ongoing funds to keep up with an increasing demand for classes and workshops at the Laguna Beach Community & Susi Q Center.

The council suggested a one-time contribution of between $100,000 and $125,000 and agreed to meet with senior center executives to discuss long-term funding strategies.