LA PALMA : City Expected to End Year With a Surplus

Although many other cities are discussing budget cuts, the city of La Palma is riding out the recession fairly well, City Manager Pamela Gibson said this week.

Halfway through the fiscal year, La Palma’s income continues to slightly exceed expenses, and the city should remain financially healthy for the rest of the budget year, which ends in June, Gibson said in a report to the City Council on Tuesday. Unless something unexpected happens, the city should end the year with a $500,000 surplus, she said.

“The city is very, very lucky this year,” Gibson said.

If the recession continues, though, La Palma might be forced to look at cutting services or increasing fees later this summer, she said. Meanwhile, no service cuts should be needed, she said.

Residents should expect higher fees this July for water and trash services because the cost the city will be paying for them will increase, Gibson said. The city has been warned that water and landfill charges will go up and that it is likely the city will have to pass those increases on to residents, she said.