Latest Yorba Linda financial update 'remains positive' as surplus is expected this fiscal year

Several times each year Yorba Linda's City Council reviews reports prepared by Finance Director Scott Catlett that focus on the financial health of city governmental operations in relation to revenues and expenditures, among other fiscal matters.

One document is a two-year budget usually adopted by council members in June of odd-numbered years, supplemented by quarterly, mid-year and mid-term updates comparing budget projections with actual income and listing possibilities for additional spending.

The latest report presented in February indicates that a projection for the fiscal year ending June 30 “remains positive, with a general fund budget surplus of $1.3 million and operating

reserves of 56 percent of general fund expenditures,” according to Catlett.

Reserves are “safely above” the council's minimum balance policy of 50 percent of general fund expenditures, Catlett reported. Total operating income is projected to be $36.3 million.

Here are some other noteworthy items from the 10-page update:

--The largest revenue increase is the $586,000 that was transferred to the general fund from uncashed city-issued checks and unclaimed deposits, as outlined in two of my past columns.

Other increases: $221,000 from the North Orange County Public Safety Task Force, offset by an increase in the Sheriff's Department contract; $212,000 from federal and state agencies for 2017 rainstorms; $121,000 in taxes from property transfers; and $118,191 in property taxes.

--Spending increases of $465,000, including funding for Information Technology Division and Town Center parking garage projects, correction of an error in figuring library retiree medical insurance, a new vehicle for the senior landscape inspector and council travel expenses.

Parking garage projects include electric vehicle charging stations and a system providing garage users with a visual indication of the number of parking spaces on each of the four levels, using $140,000 of $1 million in Air Quality Management District funds.

--Interestingly, the city will replace 2.5 “full-time equivalent” contract employee positions with 3.0 city positions and save $5,000 each year. The new positions will be a Senior Landscape Inspector, Senior Public Works Inspector and Maintenance Worker II.

According to Catlett's report, the city has determined that contract employees for public works inspections, landscape duties and maintenance work cost the city more than expenses for in-house staff, partly due to “the current prevailing wage rates charged for construction workers.”

--Property and sales taxes remain the city's top two income sources, bringing in an expected $18.4 million and $7.3 million, respectively, this fiscal year. Third is income from the franchise fees residents pay with utility bills, including cable television, with some $2 million anticipated.

Revenue from building permits is projected to be nearly $1.6 million by June 30.