The City of La Palma is showing a $1.6 million budget surplus despite a slight downtick in sales tax collections, the city’s financial consultant told the Council Tuesday at its monthly meeting.
There is a general fund surplus of almost $1.6 million, with reserves of more than $20 million, financial advisor Michael Matsuda said. “That’s about 143 percent of the current financial budget,” he said, suggesting the city is in a strong financial position.
Moreover, he said the city saw a 1.9 percent decrease in sales tax revenue and he said the heavy rains promoted a decrease in water usage in the city.
According to the staff report, the following additions were added to the budget:
• $5,000 for animal control
• $4,500 to provide a $750 per month automobile allowance to City Manager Conal McNamara.
• $23,700 for agenda management software.
• $64,400 for work order software.
• $56,400 for permitting software.
• $52,400 for its contribution to the North Orange County Special Planning Area.
• $36,000 to the Measure M budget to cover Residential zone 6 being over budget.
• $7,000 for additional sewer inspection expenses.
• $20,000 for increased legal expenses.
• $25,000 for OpenGov software.
• $120,000 for increased electricity and water costs.
• $15,000 for Tyler permitting software.
Overall, the mid-year budget items will decrease estimated revenues by $325,000 and increase appropriations by $237,000, the staff report said.
Council member Nitesh Patel wanted to know why there was such a huge overrun in legal expenses.
“Is that because of certain activities like more litigation and also Public Record Act requests and things like that,” asked Patel?
“Obviously, there is a higher volume in Public Record Act requests, but we have a number of items before us that the city attorney’s office has had to take the lead on for litigation claims,” said McNamara.
“Unfortunately, that costs the city more money,” he added, “so we want to make the adjustment at this point.”
The Council voted 4-0 to approve the mid-year Budget Resolution. The meeting was conducted by Mayor Pro-tem Mark Waldman as Mayor Marshall Goodman was absent.
Also on Tuesday, Council member Debbie Baker read a resolution honoring the American Red Cross, saying her family has been on both sides of donations, both giving and receiving.
“The city of La Palma Council recognizes the compassion and affirms its commitment by supporting efforts by the American Red Cross and founded more than 140 years ago by one of the most honored women in American history, Clara Barton,” said Baker.
She said her parents “are superstars,” having donated blood regularly for more than 25 years, and that her sister has received several blood transfusions over the past five years.
“The American Red Cross has led with compassion and care, assisting neighbors and fellow Americans to provide a beacon of hope for those in need. And throughout the biggest cities and the smaller towns, American Red Cross workers perform heroic acts of service across the United States and abroad,” she added.
March is Red Cross month, said Baker, as she thanked Red Cross official Barbara Robin and local volunteer Brenda McCoy, as well as youth volunteers.
In other action, the Council heard from a local citizen who asked the Council to investigate what could be done to lower the volume on a local preacher using an outdoor megaphone and, despite his right to preach. The volume has become a noise nuisance for neighbors blocks away and the resident asked city officials to see what can can done.