[Orange County] Drummond: Grand Jury gives city things to think about

Yorba Linda – along with all other governmental entities in the county – must respond within 90 days in writing to the findings and recommendations from the Orange County Grand Jury that are applicable to city or agency operations.

This city's most recent responses are to eight findings and eight recommendations in three Grand Jury reports dealing with unfunded retiree health care obligations, the county animal shelter and issues with joint-power authorities.

One key report impacting Yorba Linda deals with substantial unfunded retiree healthcare benefits in 32 responding cities and agencies in the county totaling more than $1 billion.

The Grand Jury says Yorba Linda ranks12th in total retiree health benefit liability at $18,725,000 and third in the annual cost of benefits as a percentage of general fund expenditures at 6 percent or $1,583,193.

And the city is eighth in unfunded liability per resident at $292 in a $1 to $694 range and third in required annual contributions as a percentage of payroll at 22.95 percent, based on a covered payroll of $7,619,000 and contributions of $1,748,362.

But significantly, Yorba Linda is one of 21 cities that haven't established an account to help fund retiree health care liabilities. The county has socked away $116 million-plus and Anaheim more than $67 million in such accounts, according to the Grand Jury's report.

Yorba Linda officials say they “will begin to evaluate the priority of funding of this obligation during the next budget cycle” and evaluate “the need to contribute something toward the unfunded liability during the next budget cycle.”

A second report recommends Yorba Linda and 17 other contracting cities “review their long-term commitment to be part of Orange County Animal Care as opposed to pursuing animal-care opportunities on their own or joining with neighboring cities that have shelters.”

The 74-year-old county shelter, notes the Grand Jury, “is rundown, overcrowded and unable to sustain” its “primary responsibility,” the “compassionate care of the county's companion animals.”

This city says it “has and will continue to evaluate” the county entity “as its service provider,” but the recommendation requires further analysis of benefits, costs and schedule estimates.

A third report focuses on joint-powers authorities, including this city's Public Finance Authority, created in 1989 and associated with the now-disbanded Redevelopment Agency. The Grand Jury says the authority should be eliminated due to “the potential for misuse or obfuscation of public funds.”

The city's response: “Over the next several months the Yorba Linda Public Finance Authority will confer with its legal counsel to determine whether its existence should be terminated and what the necessary steps are to carry that out.”

The authority “is currently inactive with no assets, liabilities, revenues, expenditures or reserves,” according to the city.

September 25, 2015

Orange County Register

By Jim Drummond