The Yorba Linda City Council unanimously adopted a two‑year operating budget and a seven‑year capital improvement plan on a final motion at the council meeting. City Manager Mark Palone and Finance Director Sunny Han presented the proposed budgets and staff recommended adoption.

The approved general fund budget for fiscal year 2025–26 totals about $49.1 million, with a projected structural surplus of approximately $114,000 for 2025–26 and about $34,000 for 2026–27, according to Finance Director Sunny Han. "The proposed general fund budget is structurally balanced with no reliance on one‑time revenues or use of general fund reserves," Han said during her presentation.

City Manager Mark Palone and department directors outlined the capital program and priorities. The council adopted a tier‑1 CIP totaling $62.9 million for the next two years, driven largely by street projects (about $43.3 million), $4.5 million for parks and recreation projects, and $14.9 million for traffic, landscaping and storm drain work. Parks and Recreation Director Mike Kudron described two council‑prioritized park projects: the Bryant Ranch basketball court (state grant funded; design complete; construction to begin this fall) and an Arroyo Park turf renovation to remove saline‑impacted soil and install salt‑tolerant turf (estimated cost about $110,000).

Other capital priorities include replacement and relocation of the Black Gold Golf Course walk‑in cooler (estimated $400,000) and several building repairs (roof at City Hall, HVAC work at the field house). Public Works Director Jamie Lai reviewed major street initiatives, including environmental and design work for widening and intersection projects on Yorba Linda Boulevard, Lakeview and other corridors, and a pavement program to maintain a target Pavement Condition Index.

Council members pressed staff on revenue assumptions and economic development. The budget projects property tax of about $27.2 million (55.4% of general fund revenue) and sales tax of about $8.5 million (17.4% of general fund revenue) for 2025–26; staff said sales tax growth in the near term is expected to be modest (about 2–2.6%) and is being monitored. "We are being conservative," Han said, noting projections from sales tax consultants.

Council members agreed on a near‑term action: to convene a workshop with the city's economic consultant and the Chamber of Commerce to explore tactics to increase local sales‑tax retention and support businesses. Mayor Pro Tem Carlos Rodriguez and other council members proposed inviting the city's retained commercial broker (JLL), the chamber, and top sales‑tax generating businesses so the council can hear direct feedback and develop quarterly action items. The council asked staff to schedule the workshop in the third quarter and to invite top sales‑tax businesses and the chamber.

The council voted to adopt the two‑year budget and the CIP by a unanimous voice vote. The meeting record does not name the motion maker and seconder on the final adoption vote.

The budget packet presented other fund details: the library fund includes annual debt service of about $1.1 million and transfers to a library capital reserve; Black Gold is budgeted on a cash basis with anticipated gross profit near $1.3 million in 2025–26 (excluding a planned one‑time use of reserves for a capital project). Staff also recommended limited reclassifications and a limited‑term grants analyst to support expected federal grant administration (citing 2 C.F.R. Part 200 uniform guidance).

Looking ahead, staff will return with any requested adjustments when the final budget is published for adoption on the June 17 agenda. The council also directed staff to finalize scheduling details for the economic development workshop and to invite the suggested participants.