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City of La Palma
7822 Walker Street
La Palma, CA 90623
Ph: (714) 690-3300
Fx: (714) 523-2141
-If there is a financial issue, why are we spending money on capital projects instead of on staffing or services?
One way to become more financially sustainable is to look for ways we can spend one-time monies to produce long term, continuous financial gains. The City Council has approved the use of reserves which are basically one-time monies, where the expense provides on-going operating savings, such as technology or energy projects. These projects therefore support staffing and services by making them more sustainable in the future. Direct use of reserves for services or staffing is not sustainable as it requires continuing to provide that funding year after year when there is no continuing revenue coming in to pay for them. The City Council, due to the unique uncertainty around revenue for the next two years, has authorized planning on a very limited use of reserves in FY 2013-14 as a one-time bridge measure to maintain services until more is known about the future financial environment, in particular Tesoro sales tax revenues in future years. This, however, is not a sustainable approach over the longer term.

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?