Special to the Town Crier
here were some pleasant surprises in the city of Los Altos financial summary ending 1998. Revenue from property taxes is up, sales taxes increased and commercial development fees and permits are up a whopping 35.41 percent.
"Yes, it's been a good year," said David Standridge, accounting supervisor for the city. "We have rising income and declining expenses, and at the end of the six months period we have a surplus of $954,000 that is transferred to reserves-capital."
The city's cut of the property tax is up. The city receives 14-15 percent of Los Altos property taxes, the remainder going to the county and the state. When a house is sold and revalued, the city benefits from the increase in property tax.
The housing sales boom has created more-than-expected income for the city, unlike the early 1990s when property values were decreasing.
Standridge said building fees are way above normal because of an increase in residential building permits and commercial building activity.
The increased activity resulted in $182,000 over budget.
Sales tax receipts are up 4.24 percent. The utility users tax is up 3.4 percent, due in part to the cellular companies operating in the Los Altos area. Of note, with the hiring of additional police, service fees, which include fines, are up only nominally.
Expenses are down because of staff vacancies. Standridge said almost every department has vacancies - unusual, because the city budget is based upon a full staff.
With vacancies in the economic development department, public works, and administration, the city saved 3.6 percent in employee expenditures.
Other funds, such as the capital fund, are on budget, with the solid waste fund showing increased revenue.
At the end of last year, the emergency reserve continued at $1.4 million on a budget of $14.8 million.
Budget changes during the year occurring in the general fund included a grant of $125,800, received for traffic safety on Sept. 22.
It was offset by the hiring of two additional police officers for traffic safety for the same amount.