The City of La Palma Where Tradition and Vision Come Together...

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City of La Palma
7822 Walker Street
La Palma, CA 90623
Ph: (714) 690-3300
Fx: (714) 523-2141
Whats the Problem?
Since 2011, the City has experienced a 24% revenue decrease (over $2.9 million). What has caused this loss in revenue? Several factors, which include: 
  • $1.6 Million loss in Sales Tax due to a loss of a major business
  • $200,000 loss in Sales Tax as a result of a business model change of a local company
  • $400,000 loss in Sales Tax from declining oil prices
  • $158,000 loss of Property Tax due to a key property owner becoming non-profit
  • $500,000 loss to the General Fund due to the dissolution of Redevelopment

In addition the City has had rising costs, which include:
  • Increasing retirement costs largely associated with prior unfunded liability obligations
  • Increasing insurance costs due to loss history and escalating cost trends

The projected ten year gap shows consistent unbalanced budgets throughout the period, beginning with the 2016-17 projected deficit of $771,800 and increasing to a projected deficit of approximately $1.5 million by Fiscal Year 2025-26.

If we do nothing to address the structural deficit, the City will have come close to exhausting its General Fund reserves by Fiscal Year 2025-26.

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