How La Palma is run
Who runs La Palma, what it costs, and where your money goes
The city manager, council pay, the budget, your property tax bill and who provides each service, from La Palma's own public documents. Every number links to its source and says which year it describes. Checked Oct 10, 2026.
Who runs La Palma
A City Manager hired by the council runs the city day to day and appoints department directors. The five council members pass ordinances and adopt the budget, and each year the council picks one of them as mayor.
What they are paid
- $550 per pay period paid into a deferred compensation plan
- $750 a month car allowance
- CalPERS pension and the same health benefits as other city managers
- $250,000 life insurance policy
La Palma city staff
53 full-time-equivalent positions, including Public safety 29, General government 8, Water 6, Recreation 4, Public works 4, Community development 2. FY2024-25. City of La Palma · Nov 15, 2025
The city posts a yearly pay report listing salary and benefits for every position, as filed with the State Controller. We name pay only for elected officials and the city manager.
Is La Palma in the red?
Cities must pass a balanced budget, so "profit" and "deficit" mean something different here. The useful questions: does the city's everyday money (the general fund) cover its everyday costs, how much does it keep in savings compared with its own target, and how big are its pension and debt bills.
The city's own outlook
The city's ten-year forecast starts with a $68,000 surplus in FY2026-27, has spending slightly above revenue for the next three years, and has revenue ahead again from FY2030-31. The city says any forecast shortfall comes mainly from yearly $400,000 transfers to other funds. City of La Palma · May 5, 2026
Savings
Unassigned general fund balance: $7.9M (2025-06-30). City of La Palma · Nov 15, 2025
Why we skip the "budgeted deficit": many cities plan to dip into savings, then spend less than planned. The audited result tells you what really happened.
Where the money comes from and goes
The general fund only: the city's everyday money for FY2026-27.
Comes from
- Property tax$5.3M · 34%
- Transaction and use tax (Measure JJ)$2.3M · 14%
- Sales tax$2M · 12%
- Transfers in from other funds$1.5M · 10%
- Utility users tax$1.2M · 8%
- Hotel tax (transient occupancy)$668,000 · 4%
- Other (fees, permits, interest, franchise fees, other taxes)$2.9M · 18%
Goes to (FY2026-27)
- Police$6.5M · 41%
- Administrative Services$4.4M · 28%
- Public Works$1.5M · 9%
- Management Services (council, manager, clerk, legal)$1.3M · 8%
- Community Services$1.1M · 7%
- Community Development$618,325 · 4%
- Transfers out to other funds$494,500 · 3%
Who provides your services
Not everything in La Palma is run by the city. Who provides a service decides whose budget pays for it and whose election decides it.
- PoliceThe cityLa Palma Police DepartmentCity of La Palma · Nov 15, 2025
- FireAnother agencyOrange County Fire AuthorityThe city is a member of the authority.City of La Palma · Nov 15, 2025
- Emergency medical aidAnother agencyOrange County Fire AuthorityCity of La Palma · Nov 15, 2025
- Police dispatchThe cityLa Palma Police DepartmentCity of La Palma · Jun 2, 2026
- WaterThe cityCity of La PalmaCity of La Palma · Nov 15, 2025
- SewerThe cityCity of La PalmaCity of La Palma · Nov 15, 2025
- StreetsThe cityCity of La PalmaCity of La Palma · Nov 15, 2025
- Parks and recreationThe cityCity of La PalmaCity of La Palma · Nov 15, 2025
Compared with similar cities
The cities in this state closest in population that we cover. Read it for scale, not as a ranking: cities provide different services.
| Per city | Red BluffCA | ParlierCA | Pacific GroveCA | La PalmaCA |
|---|---|---|---|---|
| Residents | 14,422 | 14,658 | 14,894 | 15,045 |
| Top administrator's base pay | $196,875 | Not confirmed | $266,469 | $245,000 |
| Council member pay | $11,400 | Not confirmed | $5,040 | $3,600 |
| General fund per resident | $1,488 | $479 | $2,418 | $1,050 |
| Debt per resident | $1,214 | $185 | $770 | $19 |
| Unfunded pension per resident | $470 | $198 | $3,587 | $1,505 |
| City staff per 1,000 residents | 11.0 | 5.9 | 7.2 | 3.5 |
Figures as shown in each city's section, divided by its population. Years differ by state, and pension figures are measured differently in each state (each city page says how). La Palma pays another agency for police or fire, so its own staff count is lower.
What La Palma publishes
What a resident can find online today. A "no" is something you can ask the council to publish.
- Yes: Adopted budget posted online City of La Palma
- Yes: City manager's contract findable onlinePeter L. Kim's employment agreement is in the Sept. 2, 2025 council agenda packet. City of La Palma · Sep 2, 2025
- Yes: Council votes recorded member by member onlineCouncil minutes list each member's vote by name, e.g. the 5-0 vote appointing the city manager on Sept. 2, 2025. City of La Palma · Sep 2, 2025
- Yes: Council pay stated in a public documentThe city's 2025 pay report lists council members at $300 a month, $3,600 a year. City of La Palma · Dec 31, 2025
- Yes: Employee pay publishedThe city posts a yearly employee compensation report listing salary, benefits and pension costs by position. City of La Palma
Questions to ask your council
- The ten-year forecast shows small general fund shortfalls from FY2027-28 through FY2029-30, mostly from yearly $400,000 transfers to capital funds. Will the council keep making those transfers if the shortfalls appear?
- The two CalPERS plans were $22.6 million short of full funding on June 30, 2025. What is the city's plan for paying down that gap?
The fiscal year starts July 1. Budget work begins in January, the council sets goals and reviews the midyear budget in March, reviews the long-term plan and preliminary numbers in May, and holds the hearing and adopts the budget in early June (June 2, 2026 for FY2026-27). See who is running for council
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