Yorba Linda's city finances weather pandemic

 

“Yorba Linda has weathered the COVID-19 pandemic to date exceptionally well in comparison to many neighboring jurisdictions.”

That's one of the key statements in a financial summary presented at a March 1 City Council meeting by Finance Director Dianna Honeywell.

The positive financial picture is due to “the majority of the city's revenues coming from property tax, the mix of retailers comprising the city's sales tax base and continued strong building construction activity,” according to Honeywell's eight-page report.

Property tax revenue, which was up $113,650 to some $21.6 million for the most recently completed fiscal year, was “directly related to the inventory of high-end residential and commercial properties in the city,” Honeywell stated.

And, while sales tax revenue was slightly lower than expected (down $5,941 to about $7.6 million), “the resiliency in the city's sales tax base was stronger than anticipated,” Honeywell noted.

A jump in real estate values led to a $266,000 increase in property transfer taxes; growth in building activity led to a $263,000 increase in building, planning and engineering fees; and an accounting change led to an $85,000 increase in business license taxes over projections.

Revenue declines were due to less tourism, leading to a $108,000 drop in transient occupancy taxes, and less participation in programs, leading to a $138,000 drop in parks and recreation income, although the latter was offset by lower labor costs.

Other income was $462,000 below expectations, primarily related to investment adjustments.

Notably, the city's hefty reserve balance has led to a sixth year of making extra payments to reduce the city's unfunded pension liability to amoritize the cost over a 20-year period, rather than 30 years.

For example, this year's regular pension payment to the Public Employees Retirement System for the fiscal year ending June 30 is about $1.76 million. An extra $280,000 payment brings the total contributed over the six-year period to more than $9 million.

The city also is making contributions to reduce the city's unfunded retiree medical liability. This year's total is $270,000, bringing contributions for the six-year period to some $1.5 million.

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The Placentia-Yorba Linda Unified School District's El Camino Real High School has earned honors as a 2022 Model Continuation High School, one of six in the county and named this year.

A peer review panel and on-site visitation preceded the award, the fifth for the campus that opened in 1976.

Principal Carey Aiello was recognized by the visiting team “for her attentive nature toward her staff and students, all while leading the school with a positive attitude that's reflected in the respect exchanged throughout the (school) community.”

Aiello began her career as an English teacher at Valencia High School and also served as principal at El Dorado High School.