Yorba Linda reports $4 million FY24–25 surplus, council approves midyear appropriations

Finance Director Sonny Hahn told the Yorba Linda City Council that the city closed FY24–25 with a reported general fund surplus of $4,000,000, higher than the original projection, and recommended appropriations to reduce liabilities and bolster reserves.

Hahn said the surplus reflected one-time insurance-pool receipts, a $1.2 million public-benefit contribution tied to the Cielo Vista housing project, elevated investment revenue and $3.5 million of year-end budget savings partially offset by higher health premiums. Staff recommended appropriating $583,100 toward the city’s pension liability, the same amount toward retiree medical liability, and a $5.6 million transfer to a special reserve for future capital improvements. Including the recommended actions, staff said the general fund reserves would be about 51% of operating expenditures.

For the current fiscal year, staff proposed midyear adjustments totaling approximately $1,469,000, including $32,000 to repair a community-center sewer line, $17,000 to cover increased credit/debit processing fees for recreation registrations, $10,000 to implement an e-bike safety campaign (collateral materials) and $10,000 for additional planning commission meeting clerk hours to accommodate more hearings. Council discussed the proposals and passed the midyear budget adjustments by unanimous vote.

Council members emphasized continued focus on fiscal prudence, paying down unfunded liabilities and investing in capital reserves. A public commenter raised broader concerns about state-level pension liabilities; council members responded by noting the city’s strategy of reducing local pension and retiree medical liabilities.