Financial Review Committee - October 27, 2026

The City of Dana Point Financial Review Committee met on October 27, 2026, to review the first-quarter financial report for the period ending September 30 and consider an update to the city’s reserve policy. Staff reported approximately $6.7–$6.8 million in first-quarter revenues and $11 million in expenditures, with a projected year-end General Fund balance of $19.9 million. The revenue report did not yet include September transient occupancy tax receipts; staff expected those receipts to bring quarter-to-date TOT to about $6.6 million. The amended expenditure budget was $57.4 million, including $6.2 million in transfers, of which about $3.9 million from the General Fund supports capital improvement projects. The city’s cash and investment portfolio totaled approximately $64.2 million. A motion was made to forward the quarterly report to the City Council with the TOT update; the transcript does not clearly capture the vote on that motion.

The committee discussed a proposed reserve-policy revision, including combining existing reserve categories into a 20% emergency contingency reserve, adding a proposed 5% economic opportunity reserve, and calculating reserve targets using actual prior-year expenditures. Members also discussed replenishment planning, excess balances, and how General Fund transfers to the Capital Improvement Program relate to the city’s project backlog. Staff described the policy as an update informed by best practices, not a contract or purchasing action. The committee moved the recommended reserve-policy action forward for City Council discussion, with members voting in favor as heard in the transcript. No contract awards, vendor selections, or bid approvals were identified.