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City of La Palma
7822 Walker Street
La Palma, CA 90623
Ph: (714) 690-3300
Fx: (714) 523-2141
-How does contracting out services like police dispatch save money?
Contracting out services does not always save money and the City has utilized both contracting out and bringing services in-house when there was an advantage in a given situation. Contracting out services typically saves money in one of five ways: lower costs due to lower compensation or benefits to employees; lower costs due to lower levels of service; lower costs due to efficiencies and economies of scale; avoidance of costs the City would otherwise have; or lower costs due to other competitive advantages such as superior technology or access to resources. In the case of La Palma police dispatch, the savings would be expected to come from both avoiding expenses and realizing efficiencies from economies of scale. There are some one-time costs La Palma would be mandated to incur if it maintains its own dispatch center for Police. More significantly, on-going costs can be born more inexpensively by a larger organization resulting in lower personnel and technology costs. Lower costs do not have to come from lower service levels or lower salaries.

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?