La Palma to lose sales tax revenue as BP/Arco relocates to Carson

The following information was released by the City of La Palma.

BP/ ARCO, a major fuel sales retailer located in La Palma’s Centerpointe development, has advised the City that it will be relocating some of its employees to the company’s Carson offices. The company indicates that this relocation is designed to take advantage of efficiencies and create synergy between a number of its work groups.

For the past fifteen years, La Palma has benefited from the receipt of significant sales tax revenue from BP/ARCO’s fuel sales group being located in the City. It is expected that their sales from the La Palma offices will cease in mid to late September.

The City Council will be discussing ways to address the revenue loss in the upcoming months. City staff is already working on options to present to the City Council and community that will address the loss of funding for services.

Mayor Henry Charoen said, “BP/ARCO is an excellent business partner and an important sales tax producer. We continue to appreciate our long-term, positive working relationship with them. We are sorry to lose some of the employees who currently work in La Palma.

The FY 2012-13 Budget – while developed prior to knowing about the relocation of BP/Arco’s sales group from the City – will continue to focus on public safety, community events, and infrastructure improvement and the City maintains General Fund reserves at the City Council policy level of 100% of expenditures.

The City Council will consider options available to immediately address the loss of revenue at their August 7 City Council meeting and will continue its work developing long-term solutions.