Overall,
businesses in Yorba Linda continue to see an increase in sales and
property values remain on an upward track, based on the latest
estimates of tax revenue expected to fill city coffers by June 30,
the end of the current fiscal year.
The new,
promising numbers were forwarded to City Council members late last
month in a report updated to the mid-point of the 2016-17 fiscal year
by Finance Director Scott Catlett.
Here are
some highlights from his six-page report:
--The
current projection of the city's 1 percent portion of the 7.75
percent sales tax is pegged at $7.7 million, up nearly 12 percent
from $6.9 million estimated when the council adopted a two-year
(2015-16 and 2016-17) budget, which represents a sizable sales gain
for business. Sales tax is the city's second-highest revenue source.
--Increased
citywide property values have boosted the dollars expected from
property tax collections to $17.6 million, up more than 7 percent
from the $16.4 million projected when the budget was adopted.
Property tax is the city's highest revenue source.
--Projected
increases in other revenue sources, such as engineering, planning and
administrative fees and charges; park and recreation income; and
property transfer
taxes,
among other items, result in a total income projection of nearly
$34.6 million.
That
“operating revenue” figure is 7.3 percent more than estimated
when the budget was adopted. Franchise fees, occupancy taxes and
building permit fees are as first expected.
--Of
course, the spending side of the budget also shows growth, with
$352,059 added by council and City Manager Mark Pulone previously,
and $939,251 more approved Feb. 21.
These
expenses include salary hikes for sheriff's department personnel and
city employees, security camera upgrades, higher costs for animal
control and tree maintenance service and de-silting basins due to the
recent storms.
--Also,
the city's Landscape Maintenance Assessment District will spend an
added $469,865, with $154,136 coming from the city General Fund,
since some of the district's special benefit zones will spend more
than collected in property owner fees.
And the
council has authorized $1.6 million more from the capital improvement
budget for expenses related to the ongoing Town Center project. These
added costs are for a retaining wall, landscaping and design for the
parking structure; public streets; acquiring property and easements;
and construction management, bonds and permit and plan check fees.
--Lastly,
income through June 30 is expected to outpace expenditures by
$136,000, putting the operating reserve at 66 percent of general fund
expenditures, well above council's long- standing policy of holding
50 percent of a year's expenditures in reserve.
Catlett
noted: “Staff plans to discuss options for the use of reserves over
60 percent when the (next) two-year budget is presented later this
fiscal year.”