One
important measure of the strength of the Yorba Linda economy is the
revenue the city collects in taxes and fees, especially from property
and sales taxes, which reflect the state of the real estate and
retail sectors that are often key indicators of growth, stability or
decline.
Happily,
both of these income sources will be increasing for the next two
years, according to projections presented in a recent report from
Dave Christian, who serves in city government as treasurer, finance
director and assistant city manager.
Property
tax income – the city's largest source of general fund revenue at
48.7 percent for the fiscal year that began July 1 – is expected to
increase 6.2 percent for 2015-16 and 3 percent for 2016-17, totaling
$15.9 million and $16.4 million, respectively, over 2014-15's $15
million.
Due
to the real estate recovery, the city “is beginning to see
larger-than-normal increases as the result of Proposition 8, which
has allowed assessed values to return to the levels they would have
been prior to any downward reassessment adjustments,” Christian
reported.
Also
on an upswing are sales tax collections, the general fund's second
largest source of revenue at 20.4 percent. The 2015-16 increase is
expected to be 6.4 percent and the 2016-17 increase 4 percent,
totaling $6.7 million and $6.9 million over 2014-15's $6.3 million.
“While
this revenue has been slow to rebound during the recovery, forecasts
now show larger growth partly due to increased spending and partly
due to the addition of the Costco gas station,” Christian noted.
The station opened in the middle of the 2014-15 fiscal year.
Another
key revenue source, as the city continues a long transition from a
semi-rural to a more suburban identity, is the 9.3 percent of
revenues from building permits and plan checks.
This
income is expected to jump 100 percent to $3 million in 2015-16 and
decline 31.1 percent to $2.1 million in 2016-17, due to fluctuation
in building activity.
“A
significant portion of the activity now anticipated to occur in
fiscal year 2015-16 was originally slated for fiscal year 2014-15 but
was adjusted downward at the mid-year point due to delays with the
builders,” Christian explained.
Franchise
fees residents pay with cable TV, disposal and utility bills will be
steady at about $2 million the next two years, down some from this
year's $2.1 million. Business taxes will bring in $361,500 each
year, up from this year's $345,000 but down from $431,000 in 2013-14.
Other
estimated income for each of the next two years: recreation fees,
$1.7-$1.8 million; interest income, $2 million; property transfer
tax, $450,000; and motel-hotel tax, $405,000.
Black Gold Golf Club annual revenue is expected in the $6 million range the next two years, with expenses roughly $5.5 million, excluding capital costs and depreciation. The latter is a book entry of about $850,000 per year, not a cash outlay.