Recent reports of a budget crisis looming in the immediate future are a reality for the nearly 20-year-old Santa Monica Mountains Conservancy, according to its Chief Deputy Director Belinda Faustinos. “The conservancy will be in dire financial straits as of July 1, specifically regarding our ability to provide service to the Santa Monica Mountains.” Faustinos said Proposition A funds from the county will be exhausted by June 30.

The deputy director acknowledged that small pots of funds for other programs do exist; however, even those funds will run out by the year 2000 and wouldn’t compensate for the the immediate need anyway. “Our major problem will be in providing service to our core area of the Santa Monica Mountains Conservancy.”

While there is apparently some argument on the local and state levels as to the severity of the conservancy’s actual need, Faustinos asserts that the conservancy’s cry for help is critical and the solution for support has been determined. “We are looking for an augmentation of $689,000 from the general fund in order to provide basic agency support to the Santa Monica Mountains Conservancy in order to meet our objective.”

Critics reportedly say the agency has always functioned on the edge of making ends meet and has always managed to find a way out of the woods.

Hoping to fulfill one of the main objectives behind the city’s incorporation, the Planning Commission last week wrapped up its work on proposed housing design regulations that, if adopted by the City Council, would impose strict new design requirements on new homes and remodels. The proposed ordinance would also give the commission expansive new powers to approve or deny an unprecedented number of projects that would now be subject to the commission’s review.

Much of the thrust behind the campaign to incorporate as a city was a desire to control local development. The General Plan and the city’s zoning ordinances address residential and commercial development, but the City Council, heeding residents’ complaints that some of the hillside houses built since incorporation are a blight on the community, asked the commission last year to draft an ordinance that would permit closer regulation of hillside development.

But after months of discussion and debate, the commission was unable to agree on how steep a hillside slope to set as the threshold for regulation. Commission Chair Jo Ruggles and Commissioner Charleen Kabrin pushed for regulations for homes on slopes as low as 10 percent or 15 percent, while the other commissioners advocated less sweeping regulations.

In an attempt to break through the deadlock, Planning Director Craig Ewing proposed a compromise in January that added flat-lot properties to the regulation’s purview, while subjecting fewer hillside properties to the design requirements than Ruggles and Kabrin had originally envisioned.

Currently, proposed housing developments more than 18 feet tall or planned for a hillside slope greater than 33 percent must pass the Planning Department’s site plan review process. Under Ewing’s proposal, those same projects would now be subject to the new design requirements. The regulations control a host of design elements, but generally require homes to blend into the natural terrain.

The proposed ordinance also permits the planning staff, for the first time, not to take any action on a project and instead refer it to the commission for review.

Ewing said he anticipates that many projects will be referred to the commission. He said the staff will probably approve only the most straightforward of project designs and pass on those with any potential controversy.

“The highly visible, potentially troublesome ones will go to you, generally speaking,” Ewing told the commissioners last week. He said he thought “it was a good thing” that the commission would be reviewing more proposed housing developments.

“The Planning Commission hasn’t [reviewed] enough of the projects that have gone through,” he said.

The proposed ordinance provides an exception for houses that are not visible from neighboring properties or roadways. Under the so-called “no-see-um” rule, hidden and isolated homes would not be subject to the design regulations. Ewing anticipates that most no-see-um projects will be reviewed by the commission because the staff would not feel comfortable rendering a judgment in those cases.

The proposal also requires a wider sweep of neighbors to be notified of a housing project, depending on how populated a neighborhood is. For example, residents in the most isolated parts of the city will be notified if they live within a 2,000-foot radius of the development, but the radius drops to the standard 500 feet in the most populated areas. Ruggles particularly is concerned that not enough canyon residents are currently being notified about pending projects.

“People have come in here screaming bloody murder that there’s something going in right across the canyon and they weren’t notified,” she said. “I’d rather notify too many people than not enough.”

If the ordinance is adopted by the City Council after public hearings next month, the commission plans to assess its effectiveness after its first year on the books.

When the party shuttle bus turned out to be a stretch Humve limo with neon disco lights and crystal champagne flutes, you knew the Malibu Film Festival gala would not be your average cocktail-sausage-and-chardonnay kind of affair.

After the first screening of John Frankenheimer’s “The Gypsy Moths,” festival goers fluttered off to Kashan Court (formerly known as the Malibu Castle). In keeping with the royal touch, guests were greeted by trumpeting heralds and an army of silver tray-toting servers with delicacies laid out as if they were rare African butterflies. “This is incredible,” gasped festival organizer Mike McCormick, “and I can’t believe that this lady is donating all of this to the film festival.”

The lady is Lilly Lawrence, the castle’s new queen. From the 15-foot floral chandelier, to the cozy cigar bar, to the on-site astronomer, Malibu’s newest philanthropist made sure the festival’s opening act was a night to remember.

The castle walls were drenched in a rainbow of gel-induced colors — tangerine, lemon and lavender. Balconies, banisters and window sills were festooned with python-sized garlands of Casablanca lilies, red roses and fragrant gardenias, and the food was a production worthy of “Titanic.” “I think it’s spectacular. I’ve never seen such a gorgeous presentation,” marveled Jane Kellard as she admired the spread from the castle’s candle-lit patio. To her left, a pair of dolphin ice sculptures presided over an ocean of sliced lobster, cracked crab and caviar. Inside, the dessert room featured a king-sized cake topped with a chocolate projector, white chocolate celluloid, chocolate slate boards and chocolate stars.

It was a celebrity-studded extravaganza with director Frankenheimer, Gary Sinise, Carroll Baker and Mr. Blackwell among those in attendance. They mixed with hometown notables such as Judge John Merrick, Rev. Dr. David Worth, City Manager Harry Peacock and Pepperdine Vice Chancellor Ronald F. Phillips.

For many laid-back locals, it was time to slip into something special. “Malibu is normally a place where you just put on your sweats,” said a tuxedoed David Foster. “It’s fun to get dressed up and still be here.”

Actor Seymour Cassel described the magical venue as if it were a movie set. “I’ve often wondered what it was like up here,” he explained. “I wouldn’t have missed the chance to see it.” Even those familiar with the property were amazed by its recent transformation. “It was so dark and cold before,” observed Linda Thompson Foster, “Now it’s really light and bright.”

Between bites of summer squash, purple potato and sweet red bell pepper fritatta, friends talked shop, shared stories and got to know their new neighbor.

Although she was greeting many of her guests for the first time, Lawrence turned out a stellar performance and made a splash. The folks at the Malibu Film Festival may have some hard work ahead of them, but on this night of nights, they played Cinderella with Lawrence cast in the role of the wand-waving fairy godmother who can turn pumpkins into a royal coach, or at least a humve limo.