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City of La Palma
7822 Walker Street
La Palma, CA 90623
Ph: (714) 690-3300
Fx: (714) 523-2141
-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?
As described in questions above, the City has not been financially healthy for some time and as a built out community, has few options for changing its revenue picture. Regardless of new businesses, our situation is not a short term problem. Nor would the City want to again become as dependent upon one single source of revenue as it was on revenue from BP/ARCO. Tesoro is certainly a very important part of La Palma’s financial future and, pending Federal approval, will generate significant new sales tax revenue. The City is not likely to see much revenue in the next year and it may be two years before we have a good idea of what the sales tax impact from Tesoro will be. Other known new developments will have positive, but relatively modest, impacts to property or sales tax revenues. The bottom line remains that the City cannot continue current services, they way they are currently provided, with current revenues.

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?