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
What has the City done?

In response to decreasing revenues, the City has done much over the past several budget cycles to address its financial situation.  Through the revisions in the General Plan, revenue opportunities were created, including digital billboards along the freeway corridor.  In addition to creating new revenue opportunities, the City has made several reductions including a 20% reduction in full time staff,  restructuring throughout the organization, significant changes in both the 2011 and 2015 labor agreements, and cuts to programs and expenditures. 

 Revenue Increases.png Revenue Increases: 
  • Entered into an agreement for up to two electronic billboards which are estimated to generate $204,000 per year in additional revenue
  • In 2013, the City entered into a tax sharing agreement with Tesoro to attract them to La Palma which has brought in $1.2 million in revenue since adoption


The City is already beginning to realize savings due to Pension Reform put in place in 2011.  Tier I pension employees have decreased from 65 to 34.
  • La Palma was a leader in Pension Reform by being one of the first cities to make changes to employee pensions
    • Established Tier II Pension Formulas for Safety and Miscellaneous employees hired on or after July 1, 2011 
    • These changes were further reduced when the Public Employee Pension Reform Act (PEPRA) was instituted for employees hired on or after January 1, 2013
  • Cost sharing of the employee's portion of retirement contributions was phased in beginning in 2011, with employees paying the full employee share in Fiscal Year 2013-14
 20percent Cut in City Staff.png 20% Cut in City Staff: 
  • Reduced full-time staff from 65 to 52 — smallest workforce since 1985
  • Restructured from 6 to 4 departments, which included      reducing upper management while maintaining frontline    positions
  • Staffing cuts and restructuring provided ongoing savings of approximately $1.2 million annually


 Service and Operations Cuts_thumb.png Program AND EXPENDITURE REDUCTIONS: 
  • Fit-N-Fun afterschool program                 
  • La Palma Days
  • Maintenance Position
  • Motorcycle Officer
  • Police Interact with Youth (PIY) Program funding
  • The Source cut to every other month (previously every month)
  • The Mosaic cut to 3 times per year (previously 4 times)
 2015 Labor Negotiations.png 2015 Labor Negotiations:           
  • 5% reduction in take home pay       
  • Overtime policies for members of the La Palma Police  Association and the La Palma Professional Employees Association were modified to create personnel cost savings
  • A total saving of $218,800 for Fiscal Year 2016-17

Additional Materials
Billboard Agreement
Tesoro Agreement
Employee Benefits Information
Personnel History