City Budget Talk Moves Forward

As the continues a discussion on budgeting city funds, its focus has been turned to the expense of salaries and benefits.

In a special meeting on Oct. 6, the council unanimously decided to:

• Explore personnel cost reductions while negotiating with labor unions.
• Organize another , and then new hires would be included in the city's new two-tier retirement program and have lower starting salaries.
• Consider the feasibility of issuing pension obligation bonds to fund the costs. A civil grand jury report in July found that Hermosa’s pension costs were among the highest in the county.
• Study how to limit the cost of city staff positions within salary control points, basing pay on performance.

The panel discussed aiming for a 10 percent reduction in costs, and out of that 10 percent, 2.5 percent would include reductions relating to salary and benefits.

The current 2011-2012 budget is balanced, and council members have explored other cost-cutting measures, such as outsourcing some city services (see accompanying city staff report under photo.)

If you want to relive last week's nearly three-hour special council meeting, grab a bowl of popcorn and watch the video on the city's website.

Or, share your thoughts and opinions with us here. Do you think the city is on the right track, or what other cost-cutting measures would you recommend?

Earlier Hermosa Beach Patch coverage of the city budget: