by Laura Garber
Hermosa Beach will ask voters in November to approve a half-cent local sales tax. The City Council voted 4-1 Tuesday to place the measure on the ballot.
If approved, the tax would generate an estimated $2 million annually, all of which would remain in Hermosa Beach.
The city faces a structural $3.7 million deficit projected to worsen in fiscal year 2027-28, driven largely by anticipated increases in county contracts for beach lifeguard services and fire protection.
“We cannot make up for that budget shortfall,” Councilmember Ray Jackson said. “We have to generate revenue. That’s the reality of it.”
The city balanced its fiscal year 2026-27 budget closing a $3.2 million gap through spending cuts and one-time measures. Administrative Services Director Brandon Walker said those actions do not resolve the city’s long-term funding gap.
Councilmember Michael Keegan said the two looming county contracts, beach lifeguard services and fire, could cost the city $5 million or more annually.
“Those two large bills that are coming due are really at the crux of why we have these revenue expenditure problems,” Keegan said.
Hermosa Beach voters rejected local sales tax increases in 2022 and 2024. A May community survey found 56% initial support for a one-cent measure. That rose to 62% after voters heard pro arguments, then fell to 55% following opposition arguments.
“Half a cent is the right amount and the right thing to do,” Councilmember Rob Saemann said. “It’s conservative, it’s reasonable.”
Los Angeles County voters approved Measure ER in June, a half-cent countywide sales tax taking effect October 1 that sunsets in five years. It will raise Hermosa Beach’s combined rate from 9.75% to 10.25%. A local half-cent measure would bring the rate to 10.75%.
Resident and Parks and Recreation commissioner Elka Worner asked the council to consider a five-year sunset clause on the ballot.
“I think it would be more palatable for the public,” Worner said. “These are tough times and then we go back.”
Councilmember Dean Francois cast the lone no vote. He argued the council should also place a transient occupancy tax increase on the ballot. Jackson made a substitute motion to put both measures on the ballot, including a higher TOT rate for short-term vacation rentals. It failed 2-3.
“Let the voters decide,” Francois said. “Two separate measures, two separate votes.”
Keegan said combining the measures would hurt both.
“I don’t think we could actually come up with a more convoluted ballot question if we tried,” Keegan said.
Staff will return July 28 with formal ballot language and a fiscal analysis. The deadline to submit ballot measure text to Los Angeles County is August 7. ER
People do not have the infinite ability to pay taxes that government, especially in California, foolishly believes to be true. Public sector workers are making private sector pay with public sector pensions. It’s unsustainable and exclusively the fault of government. Put SPENDING on the ballot and let voters cut it a balanced budget. No more tax increases. More contractors. Phase out city employees.
“Councilmember Michael Keegan said the two looming county contracts, beach lifeguard services and fire, could cost the city $5 million or more annually.”
COUNTY FIRE WAS SUPPOSED TO BE A MONEY SAVER. WHO DO WE GET TO FIRE FOR THIS FINANCIAL MESS?
“We cannot make up for that budget shortfall,” Councilmember Ray Jackson said. “We have to generate revenue. That’s the reality of it.”
WRONGO! Start aggressively cutting costs and cancelling stupid projects.