The La Mirada City Council reviewed the mid-year financial report at the Study Session meeting held on Tuesday, March 12. A presentation by Finance Manager Melissa Pascual showed the City’s finances are stable and generally in line with expectations. The City is likely to conclude Fiscal Year 2023-24 with a nearly $5 million operating surplus.
“The City’s mid-year budget review reflects a commitment to prudent fiscal management practices and a conservative approach to revenue forecasting,” says City Manager Jeff Boynton.
Total General Fund revenues are projected to reach $49.84 million, which is within one percent of the budgeted amount. Property tax revenues remain strong and are expected to reach $9.2 million. Residential, commercial, and industrial real estate values have continued to rise this year and La Mirada’s total assessed valuation is at an all-time high. The City receives a small portion of the one percent tax rate paid by property owners to Los Angeles County, as most property tax is allocated to school districts and county services.
Sales tax revenues are expected to reach $12.3 million, reflecting a conservative estimate. Some decreases in sales activity have been experienced across various business sectors, including business-to-business sales and construction. Recent and planned developments including retail and restaurant openings are expected to increase sales tax revenues over the next year. Residents and visitors who shop, dine, and fill their gas tanks in La Mirada help to support local jobs and City services.
Revenues from the Theatre and Community Services programs are projected to reach $11.25 million. La Mirada Theatre for the Performing Arts is having another strong season with two blockbuster productions, Jersey Boys and The Little Mermaid, still to come this spring. Rental income at the Theatre was lower due to roofing and HVAC improvements that were completed during the summer. Many groups who previously rented the Theatre for dance recitals, corporate events, and cheer competitions are returning now that the work is complete.
Recreation programs are also having another positive year. Participation in the City’s youth sports leagues, recreation classes, and senior programs remains strong. Expanded aquatics programming is being offered this spring with many swim lesson classes available at all skill levels. Additionally, Buccaneer Bay remains a popular and affordable destination for summertime fun.
Total expenditures are projected to reach $44.92 million this year, which is more than three percent below the budgeted amount. Public Safety remains the City’s top priority and more than a quarter of the City’s budget is dedicated to local safety programs, including law enforcement. Public Works also comprises a significant portion of budget expenditures for maintenance of City streets, rights-of-way, parks, and facilities. More than 60% of the City’s costs for Community Services and Theatre programs are offset by revenues generated from ticket sales and participation fees.
The City projects to spend about $16.50 million this year on capital improvement projects. Numerous projects have been completed including the street slurry seal project in the neighborhoods near Windermere Park and Escalona Elementary School, rehabilitation of eastbound Imperial Highway from the west limit to Biola Avenue, drainage improvements along La Mirada Boulevard, replastering of the lazy river and coating of the original waterslides at Buccaneer Bay, exterior painting of the City’s historic buildings at Neff Park, and many more. Other projects, including new solar panel carport structures and EV charging stations at the Civic Center, are in progress. Most capital projects are designed in one fiscal year and constructed in subsequent years.
Investing in public safety, improving local infrastructure, and supporting the community’s high quality of life are among the City’s top priorities. While the mid-year financial review was just recently presented, work has already begun on developing the Fiscal Year 2024-25 budget, which will be presented at a City Council Study Session meeting in May. The new fiscal year begins July 1.
