Yorba Linda economy continues upward trend

Yorba Linda's economy continues on a post-recession upward trajectory, as measured by the reliable criterion of tax collections, specifically the dollars coming to city coffers so far this year from property and sales taxes.

And financial stability continues in the Placentia-Yorba Linda school district, based on another “positive certification” that the district “will meet its financial obligations for the current fiscal year and subsequent two fiscal years.”

In the city's current fiscal year, sales tax revenue is projected to be $683,000 above the amount expected when a two-year budget was approved six months ago. In the next fiscal year, property tax income is anticipated to be $508,000 more than expected.

So, the new revenue projection is $33.7 million this year, $532,000 more than expenses, according to a mid-year budget document prepared by the city's new finance director and treasurer, Scott Catlett, replacing Dave Christian, who was named assistant city manager.

The $532,000 surplus is after $919,000 in appropriations approved since the budget was adopted in September and $504,000 more voted by the City Council at a March 1 meeting.

Additions include $163,337 for higher water rates and penalties for turf maintained by the Parks and Recreation Department. While the city's overall water cutbacks have achieved a 36 percent reduction, officials said the budget was “too aggressive” in anticipating savings.

Another addition is $200,000 in workers compensation payments assessed by Brea to pay claims for officers on duty in Yorba Linda. When the Brea contract ended, officials estimated a total $1.7 million in claims would be due from Yorba Linda, usually costing $100,000 yearly.

The city's combined actual and projected budget surpluses for the last, current and next fiscal years is $2.8 million, with $2.2 million used to eliminate a deficit in the trash fund and resume payments to special reserve funds that were suspended during the recession.

Still, at the end of the 2016-17 fiscal year, the current projection is for the city to have a $570,000 surplus, which is in addition to a 50 percent operating budget reserve required under city policy.

The school district's most recent financial document, prepared by Fiscal Services Director James Pham, was a state-required report due March 15 that included the “positive certification.”

A confirmation the district can meet this year's financial obligations was sent to the county Superintendent of Schools

The nearly $255 million in revenues projected for the end of the current fiscal year will be close to $1.8 million more than expenses, leaving the district with a $17.6 million total reserve balance or a 5.5 percent unappropriated reserve balance.

Salaries and benefits make up close to 80 percent of the district's some $253 million in expenses. About 4.3 percent of total revenues, some $11 million, comes from federal government sources.