The Loma Linda City Council made substantial adjustments to its ongoing spending plan for the current fiscal year as noted in its mid-year budget review.
In Loma Linda, as with virtually all governmental entities, the fiscal year runs from July 1 until June 30.
For fiscal year 2017-18, Loma Linda adopted a budget which estimated it would have revenue through all of the city's funds of $37,511,100 and anticipated expenditures calling for $36,698,700. At the mid-year point, a review of the city’s books reassessed the estimated revenue through all city funds for the one year ending on June 30, 2018 at $36,449,500. Expenditures now projected in the same time frame jumped to $44,642,300.
The city will be using what is called its fund balance, drawn from general fund and enterprise funds plus gas tax, Measure I funds and its development impact fees to make up the difference without tapping into its normally committed reserve fund, which at this point stands at $5.5 million, or its assigned reserves, which total $1.2 million.
Gas tax is passed along to the city by the State of California. Measure I funds are the city’s share of the proceeds of a countywide half-cent sales tax first ratified by voters in 1989 to pay for transportation improvements. The city’s enterprise funds consist of revenue charged to the city’s residents and businesses for water, sewer, and cable services.
At the beginning of the year, the city anticipated $19,514,600 in revenue into its general fund. At mid-year, it anticipates a net increase of $839,800 of revenue into the general fund, such that the city now anticipates $20,363,900 into the general fund, after further adjustments. The city further anticipates at this point a net increase in general fund expenditures of 410,700 from what was passed by the council in June.
According to Loma Linda Treasurer/Finance Director Diana De Anda, the city should experience a slight increase in property tax revenue, an increase of roughly $174,000 in tax revenue overall and an increase in gasoline tax. At the same time, the city is experiencing a downturn in anticipated revenue from development occurring in the city this year as builders have not made as many project applications nor pulled as many permits as was previously projected. De Anda said the city will likely see a reduction in permitting revenue by about $263,000 and another dip of $300,000 in a loss of previously anticipated inspection fees.
The bottom line, De Anda said, is “staff recommends that the city council approve the net increase in appropriations of $1,827,900 and decreases to revenues of $1,460,900, as prevented in the mid-year budget revenue. Throughout the fiscal year staff has proposed and the council has approved several budget amendments increasing the appropriation spending for the city by $6,225,700 and $702,100 for the general fund.”