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La Mirada’s annual mid-year budget report reviewed during Tuesday’s City Council Study Session meeting showed stabilizing revenues and continued cost cutting. The report examined current City revenues and expenditures, and projected estimates for the end of the current fiscal year.
The City budget adopted last June projected a modest General Fund surplus of approximately $145,000, and the mid-year report shows the surplus exceeding that figure. The City takes a conservative approach to forecasting revenues when preparing the budget. Updated estimates now project operating revenues increasing by $1.96 million or 4.74 percent above budgeted revenues by the end of the fiscal year on June 30. Most of the City’s revenues are received in the second half of the fiscal year. Additionally, the City’s ongoing efforts to reduce costs show expenditures decreasing by about $850,000 or 3 percent.
“Revenues continue to show gradual growth, reflecting the general improvement of the local economy,” says City Manager Jeff Boynton. “Combined with efforts to reduce costs, the City is in a slightly improved financial position compared to prior years.”
At mid-year, property tax revenue was $1.88 million. Property tax is currently projected to exceed the budgeted figure by $1 million due to steady increases in assessed property values and the City’s conservative approach to revenue forecasting.
Sales tax revenue is projected to increase $200,000 or 2.1 percent above the budgeted amount of $13,300,000. The increase in sales tax revenue is attributed to some new business activity and continued moderate growth in the economy.
Measure I revenue was $1.46 million at mid-year. It is projected to be $4.8 million at year end, an increase of $800,000 or 20 percent above the conservative budget estimate. This funding source is planned for infrastructure repairs that are currently in the design phase. Construction is expected to begin this summer.
Intergovernmental revenue is projected to be $6.8 million or 5.14 percent above the original budget. The City will be reimbursed approximately $2.5 million for costs incurred for the I-5 Freeway advance mitigation work on Trojan Way, Alondra Blvd., Stage Rd., and Firestone Blvd.
General Fund expenditures were $11.8 million or 42.5 percent of budgeted appropriations. General Fund expenditures are projected to decrease due primarily to reduced staffing costs.
The City is also continuing to make progress on a number of capital projects budgeted this year. Improvements to over 42 residential streets were completed in three phases last fall along with improvements to Alondra Blvd., Stage Rd. ,Trojan Way, and Firestone Blvd. Foster Park Phase III improvements were also completed last year. The Valley View Grade Separation remains in progress with an expected completion in early fall. Work on Imperial Hwy. medians began last month and will be completed in November. trudes Ave. These projects are expected to be under construction this summer.
