by Laura Garber
Hermosa Beach has gone to voters twice, once in 2022 and again in 2024, with a sales tax measure and been turned down both times. A new poll suggests the third attempt could be different, if the city can agree on what to ask.
At its Tuesday, May 26 meeting, the City Council received results from a community survey showing 55% support for a 1% general sales tax increase even after voters were presented with opposition arguments.
The survey also found 48.7% of respondents believe the quality of life in Hermosa is excellent, 45% answered good and 5% answered fair.
Approximately 11% of participants identified resolving parking and e-bike issues as key areas for improving the city, the two highest results. “Cannot think of anything specific,” ranked third. The survey asked participants about these improvements in an open-ended manner without supplying prompts.
Councilmembers were divided over whether to pursue the sales tax alone or pair it with a transient occupancy tax, or hotel tax, increase before an August deadline for a November ballot placement. The survey did not include questions about raising the TOT.
“There is no accident why this is on the agenda the same night that we’re talking about revenue enhancement options,” City Manager Steve Napolitano said of the survey presentation. “This is one of them.”
The poll, conducted in April by True North Research, surveyed 519 likely November voters using email, text and phone outreach. The firm’s president, Dr. Timothy McLarney, ran voters through pro and con arguments to arrive at a final support number.
Initial support, before voters were presented any additional information, came in at 56%. After learning how the funds could be spent; streets and potholes, public safety, parks and infrastructure, support rose to 62%. Support dropped to 55% after voters heard opposition arguments, including that residents are already struggling with inflation and rising costs.
“At every one of the ballot tests where we circled back to a respondent, the support levels were north of the simple majority that’s required for passage,” McLarney said, “and that was even after we tested opposition arguments.”
McLarney noted that 93% of measures his firm has recommended going to ballot have passed. He told the council that the survey wasn’t a crystal ball.
“What happens on election day isn’t what your poll says today,” he said. “It’s everything that happens from here forward.”
The survey focused exclusively on a sales tax, testing a 1% rate that would generate roughly $4 million annually. It did not test a TOT increase currently at 14% because testing both with the same respondents would artificially deflate whichever came second, according to McLarney.
Mayor Mike Detoy and Councilmember Michael Keegan both argued for pursuing the sales tax and leaving the TOT alone for this cycle. Keegan pointed to the consultant’s warning that putting two tax measures on the same ballot tends to hurt both.
“After listening to the consultant, we should go after the sales tax revenue and not pursue the transient occupancy tax,” Keegan said, “because he said if you put two on there, you’re likely to lose both.”
Councilmember Ray Jackson wasn’t ready to leave TOT on the table. The World Cup starts July 11. The Olympics come to Los Angeles in 2028.
“There’s a reason LA County and so many other cities in the area are looking to raise their TOT,” Jackson said. “With the Olympics coming up, with World Cup coming up, that is a lot of revenue, and that’s revenue that’s borne by the visitors.”
Dean Francois raised the failed sales tax history as a reason not to put both on the ballot. “We’ve tried sales tax twice,” he said. “There’s no indication that people trust us anymore now than in the past, and elections always create new elected officials.”
Francois argued for bringing both measures back for further study before making a final call.
Courtney Ryan, general manager of Hotel Hermosa, appeared during public comment to flag the competitive risk of a TOT increase. Hermosa Beach is already at 14%, tied with Manhattan Beach and Redondo Beach as the highest in the immediate South Bay.
“If we do decide to increase, we will be the highest in the South Bay,” Ryan said. “I think we need to promote our unique location and proximity to LAX, SoFi and Metro to bring more foot traffic to Hermosa Beach, and then the tax revenue will follow.”
The council directed staff to bring back analyses on both the sales tax and TOT for a decision before August. The city is facing a $3.2 million structural deficit. For FY2027, it’s been patched through deferred equipment purchases, reduced reserves and over $1 million in departmental operational reductions, according to Administrative Services Director Brandon Walker.
However, rising LA County contract costs for fire, lifeguards and beach maintenance and an unfunded CIP backlog estimated at between $90 million and $220 million remain.
Detoy, who noted the city’s prior failed attempts at a sales tax, said the environment felt different this time.
“It’s no secret that we have attempted the sales tax twice, and I think we need to address that head-on,” he said. “We’ve been warning about a structural deficit every time we attempted it, but now we’re here.”
Walker interpreted the survey to mean that residents were on board with the revenue measures, including the local sales tax measure, when it related to infrastructure maintenance, public safety and sustainability.
“The survey didn’t reveal a community asking for more,” he said. “It revealed a community asking us not to lose what we already have.”
The next budget meeting is Thursday, May 28, covering the capital improvement projects. Budget adoption hearings are scheduled for June 9 and June 23. ER
This requires 2/3 YES, right?