Economic slowdown predicted to affect Yorba Linda's sales tax revenue; solar canopies proposed for parking lots at three city facilities

 

A predicted economic slowdown affecting Yorba Linda sales tax revenue and a proposed solar energy conservation program at three city-owned facilities merit attention this week.

The city's property and sales tax consultant is predicting “a bit of a slowdown in the economy” in the latter half of the fiscal year that begins July 1, according to a report to the City Council by Assistant City Manager Dave Christian last month.

The slowdown is expected to impact the city's sales tax income, which is projected to “remain flat” for the fiscal year ending June 2024, and increase by only 2.3% for the fiscal year ending June 2025.

The consultant, Brea-based HdL Companies, provides the city with a multi-year forecast of property and sales tax revenues based on trends in the broad economy and unique factors that impact these revenue sources in Yorba Linda, Christian said.

“Utilization of this consultant improves the accuracy of the city's revenue forecast on the city's two largest revenue sources,” noted Christian. Property taxes bring the most revenue for city coffers, estimated at 52.7% and 53.3% for the fiscal years ending June 2024 and June 2025.

“It is anticipated that the slowdown in the real estate market that the region has experienced over the last several months will impact the second year” of the city's 2023-25 budget, Christian said, with property tax growth projected at 3.7% and 3.2% for the next two fiscal years.

A solar energy canopy project proposed for the parking lots at the Community Center, Library and Arts Center and the Black Gold Golf Club was put on hold after a 30-minute presentation and discussion at a June 6 council meeting.

Despite strong support from Mayor Gene Hernandez, potential action on the project was delayed until the July 20 meeting. A planned timeline put project completion at early-mid 2025, if approved.

The parking lots for the three city facilities were identified by San Francisco-based Forefront Power as meeting criteria for using the solar canopies to offset energy costs at the locations, with savings estimated at $2.7 million over a 20-year period.

Forefront would finance, design, construct, own, operate and maintain the canopies, with the city paying Forefront a 20-year flat rate for the solar energy generated and delivered on a per kilowatt basis, according to Christian, presumably less than the current electrical expense.

At the end of the 20-year contract period, the city would have the option of entering into a new agreement or having the canopies removed without cost to the city, Christian said, noting that Forefront would reimburse the city if the project didn't deliver at least 95% of promised energy.

Among reasons for delaying action were council member concerns about the aesthetics of the structures, with the word “eyesores” mentioned by Beth Haney; the lengthy 20-year agreement time period; and the number of sites in the proposed project.

Yorba Linda's Sheriff's contract: slight cost reduction won't last in new agreement

 

An unusual first is one element in Yorba Linda's third five-year agreement with the Orange County Sheriff's Department for law enforcement services: A slight reduction in the cost of the first year of the new contract with a July 1 start date.

The estimated first-year billing will be about $70,000 less than the final year of the current pact that ends June 30, according to Assistant City Manager Dave Christian, who said the dollar dip is because of “some slight reductions in some operational costs.”

However, Christian warned City Council members that the savings will be short-lived, since the department is negotiating with employee groups, with increases in salaries and benefits the likely result. Negotiations are expected to be complete by the end of the year.

Christian said the council will then act on an amendment to the agreement that will cover the expected increases. He noted the city has included an 8% hike in labor costs in the first year and a 6% boost in the second year of the city's two-year budget scheduled for action June 20.

Savings could have totaled about $200,000, but the city chose to add a non-sworn community service officer to the agreement at an approximate cost of $130,000. The total first-year dollar amount for services starting July 1 is estimated at a bit more than $13.4 million.

At the start of the current agreement, Yorba Linda had the lowest per-capita cost for service of the department's 13 contract cities. Now, Yorba Linda is in the bottom three for the lowest per-capita cost. Policing accounts for 32% of the general fund budget, according to Christian.

Addition of a third community service officer will allow deputies “to remain on patrol more often by alleviating some of their other duties like parking enforcement, traffic collision reports, dealing with abandoned vehicles and assisting with routine traffic hazard calls,” Christian said.

Mayor Gene Hernandez, a former police chief in Chino, told his council colleagues that community service officers are “worth their weight in gold,” based on his law enforcement service in three cities. The new five-year pact was approved on a unanimous council vote.

A deputy that was added in 2017 as part of the city’s membership in the North Orange County Public Safety Collaborative will continue with funding through the collaborative, Christian noted.

Included in the contract are 28 Deputy Sheriff II positions, including 23 in patrol, two motorcycle officers, two for community support and one school resource officer. The annual cost of service for each officer is $283,874 for salary, benefits and various field expenses.

Others included in the 43 positions assigned to Yorba Linda include a captain acting as the police services chief, five sergeants, three investigators, an investigator assistant, a crime prevention specialist and an office specialist. Personnel include 12.9 regional and shared positions.