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City of La Palma
7822 Walker Street
La Palma, CA 90623
Ph: (714) 690-3300
Fx: (714) 523-2141
-Why has the City’s financial situation changed so much?
While La Palma is a very stable community, many factors play a part in how financially stable City government is and much of this is outside of our control. The recent loss of the major sales tax generator is just the latest in a series of financial challenges. Prior to the state dissolving redevelopment agencies, La Palma used about $200,000 a year in tax increment for street improvements and other infrastructure. This funding is now gone. Several years of tax and fee limitation measures have also impacted revenue from property tax and other sources, especially for communities like La Palma with relatively low turnover of housing. About one third of La Palma homes have a tax base from 1985 or older. As a built out community, opportunities for new property and sales tax generators are limited, especially without redevelopment resources. Nor are all the changes on the revenue side. State, Federal and County mandates and new regulations also drive the cost of City services and what services must be provided.

FY2013-14 Budget Planning

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1. -Why has the City’s financial situation changed so much?
2. -Weren’t we ok financially before BP/Arco located to La Palma? Why can’t we just cut back to the level of employees and services we provided back then?
3. -Isn’t this a short term problem and once we start getting sales tax from Tesoro and other new businesses we will be financially healthy again?
4. -Doesn’t the City have significant reserves it can use instead of cutting services?
5. -Why don’t employees just accept less in their compensation so that these service reductions are not needed?
6. -I heard that the utility users’ tax was for services which are now being cut, but the tax is being retained. Why is this happening?
7. -Why is closing the funding gap all being done by reducing services to residents, can’t the City close the gap in other ways?
8. -I have heard the City is laying off dispatchers and police officers and contracting police with another agency. Shouldn’t public safety be our highest priority?
9. -How does contracting out services like police dispatch save money?
10. -What is the service impact of contracting out a service or function?
11. -If there is a financial issue, why are we spending money on capital projects instead of on staffing or services?
12. -Aren’t there ways to increase revenues that would save services?
13. -How can I be a part of the conversation on budgets and services?