Tax receipts show city's economic health
Two reliable measures of Yorba Linda’s economic health are the annual property and sales tax collection numbers, which together make up 67 percent of city revenues that are expected to total $27.5 million for the 2012-13 fiscal year that began July 1.
Property taxes--this city’s largest source of income at 47 percent of total revenues--will bring in $13.1 million, and sales taxes--next largest at 20 percent--will add $5.6 million more, according to estimates by City Treasurer and Finance Director Dave Christian.
Christian’s 100-plus pages of documents prepared for City Council budget deliberations shed considerable light on the state of this city’s excruciatingly slow economic recovery.
Property tax income reflects growth in new residential housing offset by declining values and fewer reassessments, Christian reported last year. Now, “current receipts have exceeded budget and forecasts for next year have come in higher than anticipated.”
Last year’s budget listed $12,825,000 in expected property tax income, while this year’s document estimates 2011-12 income as $31,000 higher, and Christian forecasts a further increase of $194,000 by June 30, 2013.
Sales tax revenue shows a similarly modest increase. At the beginning of 2011-12, sales taxes were estimated to total $5.4 million for the year, but the actual figure is expected to be $46,000 higher, with $5.6 million projected for 2012-13.
Other measures of economic vitality include cash collected from transient occupancy taxes, property transfer taxes, business license fees and disposal, cable television and utility franchise fees, all “fairly stable over the last few years,” Christian stated.
These revenues--the city’s third largest income sources at 11 percent--are estimated to bring in $3 million this fiscal year, down about $82,000 from projections for 2011-12.
Slight declines are anticipated in engineering income (down $122,000), administrative charges ($560,000), interest income ($60,000) and other special categories ($133,000). But building permit and plan check fees, two key indicators, will be $85,000 higher.
Interestingly, income from the Friends Christian High School lease for a 32-acre city property is included as “recreation revenue…because of the need to eventually cover the cost of the joint-use field maintenance,” noted Christian.
Lease payments haven’t been made in 2012, so the city sees a drop in recreation income of about $376,000, which represents a half-year of lost payments partially offset by park and recreation use fees, which total six percent of city income.
The budget will be balanced by taking $1.5 million from the reserve fund, which contains dollars saved from better economic times, with part of the cash used to end furlough days for about 100 city employees as of Oct. 1 and allow hiring for six vacant positions.
The city’s “available for use” reserve fund should top $30 million by June 30, 2013, plus more than $10 million in “available” special funds designated for specific purposes, such as equipment replacement, building and infrastructure repairs and general liability.
Property taxes--this city’s largest source of income at 47 percent of total revenues--will bring in $13.1 million, and sales taxes--next largest at 20 percent--will add $5.6 million more, according to estimates by City Treasurer and Finance Director Dave Christian.
Christian’s 100-plus pages of documents prepared for City Council budget deliberations shed considerable light on the state of this city’s excruciatingly slow economic recovery.
Property tax income reflects growth in new residential housing offset by declining values and fewer reassessments, Christian reported last year. Now, “current receipts have exceeded budget and forecasts for next year have come in higher than anticipated.”
Last year’s budget listed $12,825,000 in expected property tax income, while this year’s document estimates 2011-12 income as $31,000 higher, and Christian forecasts a further increase of $194,000 by June 30, 2013.
Sales tax revenue shows a similarly modest increase. At the beginning of 2011-12, sales taxes were estimated to total $5.4 million for the year, but the actual figure is expected to be $46,000 higher, with $5.6 million projected for 2012-13.
Other measures of economic vitality include cash collected from transient occupancy taxes, property transfer taxes, business license fees and disposal, cable television and utility franchise fees, all “fairly stable over the last few years,” Christian stated.
These revenues--the city’s third largest income sources at 11 percent--are estimated to bring in $3 million this fiscal year, down about $82,000 from projections for 2011-12.
Slight declines are anticipated in engineering income (down $122,000), administrative charges ($560,000), interest income ($60,000) and other special categories ($133,000). But building permit and plan check fees, two key indicators, will be $85,000 higher.
Interestingly, income from the Friends Christian High School lease for a 32-acre city property is included as “recreation revenue…because of the need to eventually cover the cost of the joint-use field maintenance,” noted Christian.
Lease payments haven’t been made in 2012, so the city sees a drop in recreation income of about $376,000, which represents a half-year of lost payments partially offset by park and recreation use fees, which total six percent of city income.
The budget will be balanced by taking $1.5 million from the reserve fund, which contains dollars saved from better economic times, with part of the cash used to end furlough days for about 100 city employees as of Oct. 1 and allow hiring for six vacant positions.
The city’s “available for use” reserve fund should top $30 million by June 30, 2013, plus more than $10 million in “available” special funds designated for specific purposes, such as equipment replacement, building and infrastructure repairs and general liability.
posted by Jim Drummond at 12:00 PM
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