Republican reps, contamination and fireworks

Two elected officials who represent Yorba Linda’s 25,035 registered Republican voters have garnered a great deal of press attention lately, including remarks--some reasonable and thoughtful--on local, regional and national blogs.

Marilyn Davenport and Deborah Pauly started their third two-year terms on the 73-member Orange County Republican Central Committee in January, with Davenport representing the city’s westside and Pauley the city’s eastside GOP.

Yorba Linda is nearly evenly split between two state Assembly Districts, the 60th in the east and the 72nd on the west. Republican voters in each of the county’s nine Assembly Districts elect six representatives to the committee to oversee county GOP affairs.

Davenport, of course, gained notice by an e-mail with President Obama’s picture in place of a chimpanzee’s face, while Pauly’s speech at a Feb. 13 Community Center protest rally drew praise and criticism, including from dozens of speakers at City Council meetings.

Coincidently, Davenport and Pauley were first elected in 2006 and re-elected in 2008 and 2010. Last year, Davenport placed fifth of nine candidates with 13,453 votes, 1,875 from Yorba Linda, and Pauley placed third of nine with 9,041 votes, 1,797 from Yorba Linda.

Obviously, not all Yorba Lindans vote in these end-of-the-ballot races. Fourth-term City Councilman Mark Schwing, elected to the committee a decade ago, lost his seat in 2010, posting 7,180 votes, 2,037 from Yorba Linda.

Fortunately, other city concerns merit positive comments:

--Monitoring of underground contamination at a Main Street parking lot, site of each Saturday’s Farmers Market, “is in its final phase and should be completed within the year,” noted a report from Housing and Redevelopment Manager Pam Stoker.

Seven wells are used for soil and groundwater assessments at the site of a former Union 76 gas station the city acquired in 2002 with costs covered by ConocoPhillips Company. Only “limited low level concentration” of hydrocarbons was reported in October 2010.

Cleanup at an old Imperial Highway gas station site west of the library will continue for several years at an estimated city-paid cost of more than $2 million.

--City-sponsored fundraising to help pay costs for the July 4 fireworks show is off to a good start. More than $1,000 was donated through last month, and additional funds are expected as registrations are received for the city’s summer recreation programs.

And longtime resident and water board director Ric Collette, an executive with Republic Industries, the city’s trash contractor, announced a $5,000 donation from the company to support the city’s most-watched event each year since 1989.

Total cost is estimated at $50,800, based on 2010 expenses, noted a report by Supervisor Rob Cavanaugh. The 15-minute fireworks display price is $21,500, the same as last year.

Proceeds from the lease of the pumpkin patch and Christmas tree lot at Imperial Highway and Yorba Linda Boulevard ($15,000 yearly) and a new cell tower at Brush Canyon Park ($1,800 monthly) are earmarked for July 4 expenditures.

If fundraising for this event succeeds, the council might consider similar appeals to pay other expenses, such as the 13.4 percent increase in the council’s fringe benefit package approved 5-0 last year and loans to the Black Gold Golf Course, totaling $4.7 million—the possibilities are endless.

New spirit of cooperation might have an impact on future relations between city, water district

Successful negotiations involving the city and water district for the transfer of the city’s east-side sewer system to water district jurisdiction might result in a significant spin-off: closer cooperation on community issues between the two public agencies in future years.

Wariness and suspicion among many past City Council members and Yorba Linda Water District directors kept the two bodies at a distance for decades, especially due to frequent suggestions by some municipal officials that the city absorb water district duties.

Former Councilman Hank Wedaa, whose 30-year city service included eight council terms, proposed several times—most recently in 2008—that the city take-over water district duties, but he never engineered a majority council vote to initiate such action.

But now, with a sewer agreement, promised collaboration on replacing the old Plumosa Drive water district headquarters with low-cost housing and new council and water board majorities since the 2008 and 2010 elections, a new spirit seems in the offing.

Normally, as long as water flows from household taps at reasonable cost and hydrants work in fire emergencies, the water district operates under the radar for most residents, and biennial elections for directors play third fiddle to council and school board races.

But drought conditions, rising water rates and the 2008 Freeway Complex Fire brought enough attention to water district affairs that a hotly contested 2010 election resulted in the defeat of two longtime directors and a total three new individuals in director chairs.

A first test of fresh cooperation between the city and water district will involve the vacant water district headquarters on Plumosa Drive, just north of the lower-level library parking lot and adjacent to the 76 recently renovated Villa Plumosa affordable apartments.

The city initially proposed trading the eastside sewers for the Plumosa building, but the water district demurred and instead gave the city a building at the east end of Brush Canyon Park, a facility no longer used for the chlorination of groundwater supplies,and which the city will use to store equipment and materials for use on the east side.

Both agencies want to see the old headquarters site converted to low-cost housing, as an extension of Villa Plumosa, with water district employees offered first right of refusal on units, and which would help the city meet state-mandated low-cost housing requirements.

Villa Plumosa, formerly Linda Gardens Apartments, opened January 2010 and is across from 67 Arbor Villas units opened in 1997. Both are managed by National Community Renaissance, a low-cost housing developer also planning 43 units at Savi Ranch.

The 10-page agreement between the city and water district regarding sewer service to more than 6,000 homes and businesses, generally east of San Antonio Road, will take effect July 1.

Eastside sewer assessments the city received for 2010-11 will be transferred to the district, less labor, overhead and contractual obligations. The district will complete work on a sewer lift station for seven homes on Green Crest Drive in Hidden Hills.

If the two agencies sustain this spirit of cooperation and sewers are administered at lower overall costs as promised, the sewer agreement is in contention for the “best City Council decision” in 2011.

Current council uses past councils' savings

Sitting City Council members often take advantage of a valuable political perk: when unpopular decisions are necessary, they blame former council members for getting the city into the perilous predicaments in the first place.

And with the historic level of council turnover the past decade--11 newly seated members since 2000--plenty of former officials are available to share responsibility for past actions or, in many instances, lack of action.

Of course, prior office-holders didn’t deliberately embark on budget-breaking endeavors, but a few decisions didn’t turn out as planned or they produced unintended consequences.

Lush landscaping has become a watering and maintenance headache, neighborhoods don’t include enough lower-cost housing and a high-end golf course isn’t returning a once-promised $1 million annually to the city treasury.

Roadside greenery, expensive homes and a revenue-producing recreational resource were all popular decisions when made by past councils, but now the city is dealing with budget problems and affordable housing questions that will impact Yorba Linda’s future course.

Fortunately, past councils accomplished one feat that greatly lessens the immediate crisis: they accumulated a massive reserve fund that’s come in useful the past couple of years as the city has dealt with decreasing revenues and increasing expenditures.

According to a mid-year budget update for 2010-11, prepared by Finance Director David Christian, reserves will total an estimated $30.7 million on June 30 or 114 per cent of the city’s general fund operating expenditures.

The reserves total dropped $2.3 million by the end of the last fiscal year and is estimated to drop an additional $2.3 million this fiscal year, Christian reported to council members.

When Christian presented his update at a recent council meeting, the “available for use” reserve balance was $21.6 million, or 81 percent of annual expenses. But the $6 million the city loaned to the Redevelopment Agency in 2001 and 2004 was repaid the next day.

If the repayment is added to the reserve fund, the city’s “available for use” total is expected to be nearly $27.7 million on June 30. The only other loan from reserves is $793,148 to the Black Gold Golf Club.

Total city loans to Black Gold are a bit more than $4.7 million from different accounts, Christian previously reported to council. Interest that totaled $327,592 by the end of the most recent fiscal year has been waived, based on a past council’s controversial decision.

When this fiscal year’s final accounting of revenues is computed after June 30, officials expect property tax income to be stable, sales tax and building permit fee revenue higher and interest income below the amounts estimated when the budget was adopted last year.

In a related action, council members recently took a look at the city’s annual audited financial reports for the fiscal year ending last June 30. The Lance Soll & Lunghard firm issued a “clean” opinion for municipal finances, according to Christian.

The city’s assets were listed at $513.8 million, liabilities $89.4 million and net assets $424.4 million, including $102 million in cash and investments.

Assets for the city-run Redevelopment Agency totaled $82.2 million, liabilities $86.8 million and net assets minus $4.6 million, with $38.3 million in cash and investments.

Local schools face more budget troubles

One key factor in the growth of this once-sleepy hamlet into a desirable suburban community has been the local school system.

Successive superintendents, forward-thinking boards of education and committed staff created an environment that drew thousands of families to Yorba Linda to take advantage of high-quality schools.

Even empty-nesters gained from school excellence, since during boom times property values were high for homes Realtors could advertise as “located in the award-winning Placentia-Yorba Linda school district”--often omitting “Placentia” from the name.

But now, in a troubled economy, when new taxes or just tax extensions are perceived as an anathema to struggling households, the district’s five elected trustees face formidable financial problems as they chart educational choices for the next few years.

In a PYLUSD website statement, Superintendent Dennis Smith outlined the dilemma: without voter approval of specified tax extensions on a June ballot, the district must cut $15.5 million from the upcoming budget, more than double the amount already planned.

Reductions for the 2011-12 school year would be on top of some $30 million sliced from budgets during the previous five years. In fact, the district expects to spend more money this year than it receives in revenue, relying on reserves accumulated during better times.

According to a dauntingly titled “Second Interim Financial Reporting and Certification of District Financial Solvency” prepared to meet a March 15 deadline, total expenditures are anticipated to be just over $206 million on income approaching $196 million for 2010-11.

To meet the deficit, the district expects to spend down the reserve fund to $14.6 million from $20.1 million, after other transfers, for a new reserve total of 6.8 percent of budget.

That reserve is projected to drop to 3.12 percent of budget, or $5.8 million, at the end of the 2011-12 fiscal year, based on an expected $177.6 million revenue stream and, after a $15.5 million trim, an expected $188.5 million in expenditures.

By contrast, the city maintains an “available for use” reserve of $21.6 million, about 81 percent of $26.6 million in operating expenditures, much higher than comparable cities.

Of course, school budget reductions necessitate a close look at personnel costs, since employee salaries and benefits total better than 83 percent of expenses--about $171.5 million of this year’s expected $206 million in expenses.

That’s why the district issued layoff notices for 37 certificated positions: five counselors, two psychologists, one resource specialist, 22 elementary and seven secondary, the latter including two each in English, PE and social studies and one in music.

These annual pink slip rituals often rile public school critics, since many are rescinded before the next school year. But schools must plan for a “worst-case” scenario because state law mandates layoff notification well before income is known.

Also involved is the district’s slight decline in enrollment each year. The average daily attendance for 2010-11 is 25,106 with 2011-12 ADA projected to drop to 24,930, 2012-13 to 24,836 and 2013-14 to 24,693.

While building and expanding successful programs in a growing economy requires insight and judgment, sustaining excellence in tough times will be a greater test for school officials.