La Palma council approves $2.1 million surplus transfers, authorizes four replacement vehicles

The La Palma City Council on May 5 approved a series of surplus transfers and authorized purchases intended to shore up reserves and fund equipment replacements.

Deputy City Manager Joe Cisneros presented the draft FY 2026–27 budget and a long‑term forecast, stating the city “holds approximately $24,800,000 in spendable reserves, equivalent to 157% of the draft fiscal year 26‑27 general fund expenditures” and described a proposed $2.1 million surplus transfer. Cisneros said the draft budget projects a modest $68,000 surplus for 2026–27 and highlighted capital projects and an $850,000 federal grant for police department renovations.

After council questions, Mayor Pro Tem Debbie Baker moved to transfer $2,100,000 from the general fund unreserved balance into reserves and specific funds. The motion — seconded by Council Member Mark Waldman — allocated $1,000,000 to the cash flow reserve, $538,000 to the vehicle maintenance and replacement fund, and $525,000 to the emergency reserve. The motion passed unanimously on roll call; all five members voted yes.

Council immediately considered the next agenda item to use part of that allocation. Acting Community Development and Public Works Director Jake Chavira requested authorization to purchase four replacement vehicles (for police, public works and community services), to be procured through a cooperative fleet purchasing agreement and funded from the recently approved transfers. Council Member Janet Keo Conklin moved to authorize the purchases; Council Member Mark Waldman seconded. The authorization passed unanimously.

City staff said there is no immediate fiscal impact beyond the allocation of surplus funds and that any council direction will be incorporated into the final adopted budget when the council considers adoption on June 2, 2026.

Formal actions recorded in the meeting minutes: the consent calendar was approved unanimously; the $2.1 million surplus transfer was approved unanimously; and the authorization to purchase four replacement vehicles was approved unanimously. The council will consider the final budget adoption at its June 2 meeting.