LA PALMA : City Finances Strong Despite County Woes

Despite a sputtering state economy and a bankrupt county, city finances so far this fiscal year are in very good shape, City Manager Pamela Gibson said in a report this week to the City Council.

“Our expenditures are running below our revenues, and we’re doing pretty well in the general fund,” Gibson said. “The utility tax is probably doing the best. We’re exceeding our projections” for income from the city utility tax.

Gibson also reported that despite the city’s $5.5-million investment in the county’s troubled county pool, the freeze of that money has not hampered day-to-day operations. She said the $5.5 million includes investments by 25 separate city agencies or entities. No single agency has been drastically affected, she said.

The Legislature, which in past years has taken away some sources of city funding, might not be a threat to La Palma and other cities this year, Gibson said. “While we don’t expect the state to make a raid on city finances this year, we won’t know for sure until May,” she added.