The Hermosa Beach City Council approved a $37 million budget on Tuesday, riding an increase in the city’s sales tax and recent legal settlement with Macpherson Oil.
The balanced budget, which includes a $2 million surplus, is also a result of the city cutting personnel by 13 percent over three years and small increases in property and hotel visitor taxes, said Finance Director, Viki Copeland.
The city has spent $3.75 million fighting Macpherson, and the settlement limits the city’s liability at $17.5 million. City officials have budgeted another $300,000 to button up the remainder of the case that gives voters the final decision next year as to whether to allow oil drilling in the city. The city is setting aside most of the $2 million surplus toward the final settlement costs with Macpherson.
Council member Kit Bobko said he voted against the budget because the council hasn’t supported serious cost-cutting measures – in particular, his proposal to outsource the city’s parking enforcement division.
Bobko introduced the idea at the budget workshop June 11, and the council decided to wait until a new city manager was hired before holding a public hearing on the issue, which is scheduled for September 11. The council appeared split on the issue, with council member Mike DiVirgilio supporting Bobko’s call to put out requests for proposals to various companies. Council member Howard Fishman opposed it, saying that private companies with incentive-based contracts tend to write more tickets, and Mayor Jeff Duclos said Bobko’s numbers could not be verified.
Bobko claims the city could increase revenue by $500,000 by privatizing parking enforcement, in addition to getting out from under $3 million in legacy costs.
“We’re afraid to cross the public unions in this city,” Bobko said of his colleagues on the council.
At Tuesday’s budget vote, Council member Peter Tucker rejected Bobko’s claim that council members aren’t interested in cutting costs. Tucker said the proposal to outsource the parking division has its “pluses and minuses,” but Tucker criticized Bobko for offering his proposal so late in the budget process. “You gave us that at eight o’clock the morning of our budget meeting,” Tucker said. “It’s not going to happen tonight.”
Bobko also took issue with a $5,600 fitness incentive program for the fire department.
“We’re paying guys to not to be overweight,” Bobko said. “On the job.”
Duclos said offering fire fighters an incentive to exercise was like sending finance department staff to attend training sessions on budget issues.
“There’s different ways to look at fitness,” Duclos said.
