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Aliso Viejo council receives mid‑year financial update, approves $541,002.57 in appropriations
Summary
Council received a mid‑year budget update showing revenues trending within estimates, authorized $50,000 in gas‑tax and $491,002.57 in PLHA funds for FY24‑25, and asked staff for clearer sales‑tax and revenue breakdowns for future forecasts.
Aliso Viejo city staff presented a mid‑year financial update showing the city remains on track near adopted budget estimates and recommended two mid‑year appropriations for council approval.
Finance staff reported an unanticipated higher starting fund balance this fiscal year ($37.9 million versus the previously estimated $34.7 million) and revenues through December 2024 of about $7.4 million. Sales tax through October stood at roughly $3.4 million; staff noted part of the year‑over‑year sales tax increase is attributable to a revenue‑sharing agreement with Hunt & Sons. Transient occupancy tax (TOT) through the quarter ending September totaled $468,000, about $40,000 below the prior year but potentially offset by later receipts.
On expenditures, staff said the general fund is trending under budget by about $1 million due to salary and benefit savings and vacant positions. Finance staff projected that, if current revenue and expenditure trends hold, the city could end the year with a surplus of about $600,000 versus the original plan to use reserves.
Staff recommended — and the council approved by unanimous roll call — appropriations of $50,000 in gas tax for traffic signal equipment and $491,002.57 from the Permanent Local Housing Allocation (PLHA) grant to support public safety, maintenance of city‑owned affordable housing and nonprofit services. The PLHA grant has stipulations: staff said distributions will be phased (initial distributions will include nonprofit support, with later distributions emphasizing maintenance and repairs), and the city has until 2030 to spend the award.
Council members asked staff to provide clearer sales tax reporting (including breakdowns excluding one‑time windfalls such as new major openings) and to invite tax consultants to explain how online sales tax is allocated. Staff agreed to return with more detailed sales‑tax timing and to incorporate council feedback into the FY25‑26 budgeting process.
The council voted unanimously to receive and file the mid‑year update and to authorize the two appropriations.
