In July 2015, the La Palma City Council established the Citizen Committee on La Palma’s Sustainability and Future, better know as the Financial Sustainability Committee. The Committee was created at a critical juncture in the City's 60-year history. The Great Recession and loss of the City’s largest sales tax producer have reduced revenues, while pension and other costs have increased. In response, the City Council has reduced 20% of its workforce to pre-1985 staffing levels, from 65 employees to 52, including the elimination of two department directors. In addition, the City has been forced to consider suspending its signature event, La Palma Days. Unfortunately, these reductions are not nearly enough to achieve a balanced budget.
The types of measures beyond those already enacted and planned may impact the character and traditions of the City. Therefore, the City Council does not believe that it is prudent to consider any significant changes without input from the residents and the newly established Committee.