A review of the fiscal year 2023-24 budget for La Cañada Flintridge was presented to the City Council on Tuesday and unanimously approved, covering year-to-date status of revenues and expenditures as of Dec. 31, 2023.
After reviewing the budget, city staff made fiscal year adjustments that would give an overall increase of $612,550 in General Fund revenues, bringing the total to about $20.3 million. An increase in budget expenditures of $600,830 will bring the total to about $20.2 million, Director of Finance Alex Kung said.
As of Dec. 31, the General Fund revenue totaled $7.4 million, or 37.8% of the budgeted revenues, which was $19.7 million.
“While this may seem a little low, it’s been consistent with previous years,” said Kung. “Overall, when compared to the current budget, we’re projecting increases [from] property tax.”
The city received $635,521 more than last year in all revenue categories, but primarily in local taxes and fees, such as services charges and uses of money and property. As the city’s largest category of revenues, local taxes and fees continue to remain stable and continued to increase over the last four years.
Proposed revenue adjustments include increases to the property tax, interest income and building permit and plan-check fees, to name a few. Decreases included zoning fees, Lanterman Auditorium rental fees and film permit fees.
“While the majority of our revenues are projecting upwards, we did reevaluate some of our revenues downwards,” said Kung. “For example, the writers’ strike had an impact on our filming permits, so we’re proposing a decrease for this year. We’ve also projected lower-than-anticipated zoning and Lanterman Auditorium fees.”
Kung also added that the city is seeing less public work permits this year.
General Fund operating expenditure sat at about $7.9 million, or 40.8% of the budgeted expenditure as of Dec. 31.
Compared to the 2022-23 fiscal year, the current year’s expenditures — as of midyear — are higher by $968,527 due to increases in legal services and public safety costs.
Staff proposed an expenditure increase to various accounts in the General Fund expenditure budget, which include legal services, street maintenance and contract services, to name a few.
“We’re also anticipating some savings, though, in regard to expenditures in personnel costs and contract services,” said Kung.
Staff recommended a decrease of $485,795 in line-item expenditures, like reductions in salaries and benefits for various departments because of vacancies.
In total, the staff salary and benefit adjustments result in a proposed net increase of $600,830 in budgeted General Fund expenditures.
Overall, Kung said that there are not any General Fund reserves being used for the proposed budget adjustments.
Councilman Keith Eich commended the staff for getting the report to the Council earlier than usual.
“I appreciate all the hard work, and super glad we’re not pulling down from reserves,” said Eich.
Mayor Rick Gunter agreed and said that the city continues to be well-managed.
“At the end of the day, with the adjustments and reductions, it’s kind of where we thought it would be,” said Gunter, noting that though there was an increase in both revenues and expenditures, there were decreases that balanced the result.
First published in the March 21 print issue of the Outlook Valley Sun.
