Despite Orange County's bankruptcy, the city is in good financial shape and has prospects for "another good year" in 1995-96, interim City Manager Len Wood told the City Council.
Wood gave his financial overview in a report at the council's meeting Tuesday. He said that, as the city prepares its budget for the fiscal year beginning July 1, La Palma is safely in the black.
"The budget picture is looking better this year despite disasters," Wood wrote in the report.
Wood is forecasting a new city budget totaling about $5.4 million, compared with $5.2 million for the current fiscal year.
"The overall budget shows some additional costs," Wood said. "This is primarily a reflection of an increase in the cost of supplies and services that we obtain from the private sector."
Wood said the new budget also will contain money for pay raises for police and other city employees. Police have not had a pay raise since 1993, and all other city employees have had no pay adjustment since 1992.