Redondo Beach council nears hotel tax rate to go to voters
By Garth Meyer
by Garth Meyer
A hotel tax increase will go before Redondo Beach voters next March. The amount was debated by the city council Nov. 3.
The “Transient Occupancy Tax” (TOT) levied on hotel room stays in the city is now 12%.
A year ago, the city council started to discuss whether to put forth a ballot measure to raise the rate. In October, Redondo councilmembers began to draft ballot text to take it “up to 16%.”
Refining of the draft took place this week.
“I do think 16% is justified,” Councilman Scott Behrendt said, cautiously. “Redondo Beach residents are a tough crowd.”
Councilman Chadwick Castle said 16% is too high.
“A 33% perceived increase is a huge jump,” he said.
He proposed keeping it to 15%.
“I think 15% will sell to the voters better,” said Councilman Brad Waller. “Otherwise phase it up to 16%.”
The same tax in Manhattan Beach and Hermosa Beach is 14%, Torrance is 11% and Rancho Palos Verdes 10%. Santa Monica’s rate will go from 14% to 15%, after a ballot measure there passed Nov. 3.
Before those results were in, Redondo Councilman Zein Obagi, Jr. advised caution, saying to wait to see what happens in places such as Santa Monica, and for Measure ART in Redondo Beach [it passed easily], which would loosen development rules on the Artesia-Aviation Blvd. corridor.
The proposed hotel tax change in Redondo Beach would be the city’s first increase to the tax since 2005.
“To generate revenue from folks who do not live here, in my opinion, is one of the best ways to generate revenue,” Obagi, Jr., said.
Also debated Tuesday was how to present the potential benefits of the increased tax.
At the high end of estimates, it would bring $750,000 per year to the city per one percent uptick in the rate.
The range in estimates is $600,000 to $750,000.
Put it at $675,000, suggested councilmembers for the ballot text.
Another question was what to say, in the limited space – no more than 75 words – about how the new proceeds would be spent in Redondo Beach.
“Critical city services” the current draft reads. “Generic go vernment use, street repair, police and fire emergency response.”
Discussion ensued.
Instead of “street repair” what about “street and pothole repair,” and add “park maintenance”?
The new tax, if passed by voters, would take effect next July 1.
Obagi, Jr., said it should not be phased into 16%, just put it at 15%.
Councilmember Paige Kaluderovic said that phasing-in sounds more deliberate about setting a rate.
“I would prefer to have discretion,” she said, adding that she also wanted to see results from other cities’ ballots from Tuesday.
Councilman Castle reminded his colleagues that the Torrance rate is 11%. He called for the Redondo measure to ask for “up to 15%.”
Mayor Jim Light then asked for public comment.
“Anyone on Zoom?” he said.
“No one on Zoom,” came the answer from the deputy city clerk.
No one in the sparse chamber had a comment either.
So the mayor called the vote: 5-0 to continue the discussion at next week’s council meeting.
Once the city council approves the final ballot measure language, deadlines follow to submit arguments, rebuttals and the city attorney’s impartial analysis, all by Nov. 30. ER
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