City Budget

Some Laguna Beach residents and watchdogs argue the City government has displayed signs of fiscal mismanagement, particularly in areas of delayed accountability, underestimating budget deficits, and over-reliance on volatile revenue sources. For instance, the City has been late in delivering audited financial statements (such as the fiscal year ending June 30, 2023), with auditors highlighting weak internal controls and oversight, especially around closing procedures and bank account monitoring. Laguna Beach Independent Meanwhile, the city recently faced a projected $3 million budget shortfall, in part because transient occupancy tax (hotel tax) revenues fell short of expectations. CitizenPortal Budget appropriations have occasionally outpaced realistic revenue projections and required difficult tradeoffs, such as shifting expected excess property tax revenues from general operations toward mandatory housing fund commitments. CitizenPortal+2CitizenPortal+2 Critics also point to funding allocations (e.g. for downtown beautification or marketing) that appear to prioritize tourism and aesthetic improvements over infrastructure or essential service stability in outlying districts. Voice of OC Altogether, these issues have led some in Laguna Beach to question whether the city leadership is carefully balancing ambitious projects with prudent fiscal planning and ensuring that tax dollars are used sustainably and equitably across all residents.