Yorba Linda economy shows strength since pandemic shutdown; Yorba Linda renews animal care contract

 

Yorba Linda's economy since the Covid-19 shutdown period has shown significant strength, as measured by the city's increased property and sales tax income from what was expected when the current two-year budget was adopted in June 2021.

The city is reporting more than $1 million in anticipated additional revenue – $563,681 from property taxes and $565,000 from sales taxes – in a mid-term financial report from Finance Director Dianna Honeywell. Parks and Recreation Department income will increase $267,000.

The property and sales tax streams represent about 75% of the city's $43.4 million operating revenue expected by the close of the fiscal year June 2023. Property tax income is expected to reach nearly $23.8 million, and sales tax revenue is expected to reach nearly $8.6 million.

“The booming real estate market has resulted in strong growth in the city's assessed valuation,” Honeywell said in her report, noting that the increase is based on a projection from a city-hired property tax consultant.

“Continued growth in the economy has shown ongoing positive improvements in business activity” resulting in the forecast for additional sales tax income over the original estimates, Honeywell said.

And, according to Honeywell, parks and recreation programs “are anticipated to be operating at near pre-pandemic levels,” with revenue expected to jump to nearly $2.3 million by June 30, 2023. Transit occupancy taxes and business licenses fees will be up $68,000 to $1.7 million.

One interesting revenue loss is a $45,000 drop in franchise tax income, which is due to lower cable television revenue, partly offset by higher tax revenue from the Southern California Gas Company and Republic Services trash hauling.

Revenue increases also are projected for the library and Black Gold Golf Course funds. The added library income also is due to increased property taxes, since the library has separate property taxes due to its former status as an independent special district from 1914 to 1985.

Black Gold income increases are expected to total $1.7 million, with most going to additional expenditures, such as a loan repayment to another city fund, staffing increases, higher costs for pro shop and food and beverage stock and a Kemper management fee hike of $132,750.

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Yorba Linda renewed a contract with Orange County Animal Care for an estimated $341,442 through June 30, 2023. In addition to the contract fee, the city is paying a shared cost of the new animal care facility in Tustin. The city's portion of $512,000 has $217,707 left to pay by 2026.

Among the services provided are licensing, stray and owner-released animal impounds, rabies control, leash and nuisance law enforcement, animal cruelty investigations and a procedure for residents to report barking dog complaints in their neighborhoods.

The door-to-door license compliance canvassing used in past years is not expected to resume.