No city property tax in the past

One promise by Yorba Linda's early leaders—to not levy a city property tax—helped secure the positive 1967 vote for incorporation, with the promise becoming policy as fledgeling City Councils avoided the tax until 1978's Proposition 13 altered the revenue landscape.

The city's voluntary “no property tax” stance turned mandatory because the measure prevented Yorba Linda councils from imposing the land tax to pay for a growing city's need for more services, including higher levels of police and fire protection.

In fact, a few prescient city staffers, including veteran City Manager Art Simonian, and council members seriously questioned Yorba Linda's future financial stability.

So Simonian lobbied Sacramento politicians for special legislation that allowed Yorba Linda a 10 percent share of what is now labeled the “basic levy rate” on annual property tax bills from the county, totaling $1.5 million the first year.

Now, property taxes account for 45 percent of the city's income, followed by sales tax revenue at 20 percent. Together, the two tax streams are expected to fund $19.2 million in city services for the fiscal year that began July 1, and another $19.8 million next year.

Two key council goals since Proposition 13 have been to increase property values and boost opportunities for sales tax generation. Council created a property tax-funded Redevelopment Agency in 1983 for the Savi Ranch area, amended to include Town Center in 1990.

However, the state forced cities to dissolve the agencies in 2012, complicating Town Center redevelopment and rejuvenation proposals for this city's portion of Savi Ranch, named for a firm founded in 1877, the Santa Ana Valley Irrigation Company.

Savi Ranch is the city's largest employee base and accounts for a significant portion of the city's property and sales tax collections, so the center's success is a vital concern to Yorba Lindans who benefit from the city's many tax-supported services.

That's why keeping the Savi Ranch business-mix relevant into future years is important, and that's one aim of a new study, briefly mentioned in last week's column. A $240,000 Caltrans grant and $24,000 city allotment will fund the utile land use and mobility survey.

According to a report from Community Development Director Steve Harris, a completed plan “will provide a planning analysis that is intended to enhance the coordination of land use and transportation planning and to establish policies that promote livability and economic stability.”

Harris noted “key features” will include a community outreach process, development of a concept-level mobility plan, strategies for economic development, refinement of land use policies and the development of urban design concepts to promote livability.

Council has approved low-income apartments for some six acres of the 200-acre Savi Ranch site, as allowed by 2012's voter-approved Measure H. A non-profit housing firm will build and administer 123 units.