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La Palma council ratifies three-year labor agreements amid warnings about future deficits
Summary
The La Palma City Council on a 5–0 vote adopted three memoranda of understanding that raise base pay 5%/4%/4% over three years and approved a $4.3 million transfer into reserves; residents and a former finance director urged caution, saying budget assumptions risk long-term deficits.
The La Palma City Council voted unanimously to ratify new three‑year labor agreements for the city’s three bargaining units and to adopt an updated management salary schedule, while also approving a $4.3 million transfer from unreserved general fund balance into reserve accounts.
Deputy City Manager Joseph Snaros summarized the tentative memoranda of understanding (MOUs) the council adopted effective July 1, 2025. The packages include base-salary increases of 5% in year one, 4% in year two and 4% in year three — a cumulative increase the staff estimates at roughly 15.7% — together with other adjustments such as higher medical premiums, an increased vision reimbursement, a revised overtime calculation for the Police Association, and additional longevity pay steps for sworn personnel. Snaros said the full fiscal impacts are detailed in the staff report and will be incorporated into future budgets.
Council also approved moving $4,300,000 of the unreserved general…
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