Politics & Government

State of the City Address

Mayor DiVirgilio remains positive in uncertain times.

Despite a hiring freeze and possible pension cutbacks for future city employees, Hermosa Beach Mayor Michael DiVirgilio insists that the town's future is bright.

Innovation within the 1.3-square-mile city and optimism in turbulent times were the focus of DiVirgilio's State of the City speech, delivered to an appreciative audience of colleagues and residents at the Beach House Inn on Thursday.

"There are a lot of things on the horizon that are tough and a little bit scary," DiVirgilio said. "We have an incredibly creative group and we're all very workable — we're really working together to come up with some really good solutions to move forward."

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Still, DiVirgilio addressed the some of the biggest issues concerning the city — the ongoing legal issues with Macpherson Oil and the recession-driven decrease in city revenue.

The Macpherson case, which began in the 1990s, came about when the city reneged on its agreement to permit the oil company to drill within city limits after voters opposed the deal. DiVirgilio remained optimistic about the forthcoming trial.

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"In the future — the folks who fill this room, the people who talk in the neighborhoods — they're going to look back years after this is done and look back at this trial we've been through, this whole ordeal we've been through for decades and actually recognize that our community is better because of it," DiVirgilio said.

The mayor acknowledged that the city has halted nearly all hiring and is considering a pared down pension for new hires — when they are made. 

He pointed out that the Hermosa Beach budget is "a lot like everybody's budget, we're seeing revenues decrease and we continue to see costs go up." But one thing that separates Hermosa Beach from neighboring communities is that it isn't as heavily reliant on sales tax.

"In positive years we don't benefit from that increase in sales tax," DiVirgilio said. "In negative years, like the last couple, we haven't been hit as hard by the decreased revenues as [cities] that really rely on malls and really rely on car dealerships to fund their budget."

DiVirgilio commended citizen efforts that enrich city life, including one to make Hermosa Beach carbon neutral and another to prepare residents in case of natural disaster or a terrorist attack.

The mayor praised small businesses that have weathered both the recession and the Pier Avenue Improvement Project, thanking the owners for their understanding and saying that the new and improved thoroughfare will soon be a magnet for patrons.

In a wide-ranging paen to the city's unique identity, DiVirgilio touched on professional beach volleyball, Miles Davis and his infamous appearances at the Lighthouse Café and even the Hermosa-based punk band Pennywise. DiVirgilio admitted he wasn't a fan, much to the crowd's amusement, but he assured the crowd that he could enjoy their music if he only gave it a chance.


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