City May Add Police Officer to FY 2013-2014 Budget

Hermosa Beach City Council will discuss the preliminary fiscal year 2013-2014 budget and Capital Improvement Program Tuesday beginning at 7 p.m. in council chambers, 1400 Highland Ave.

City Manager Tom Bakaly's proposed budget adds a full-time police officer and two part-time weekend community services officers for parking enforcement until 2 a.m., according to the online budget document. It also asks for council to approve the addition of 3 part-time recreation specialists to supervise the skate park.

The document provides a look at financial projections for the city. Revenue from sales tax is estimated to be about $2.5 million, back at levels seen before the 2008 economic downturn. FY 2012-2013 was the first time sales tax returned to $2.5 million after 4 years in which the city saw a range from $2.1 to $2.3 million.

Sales tax from businesses along Pacific Coast Highway for 2012-2013 slightly beat out the downtown area 42 percent to 40 percent, according to the document. The downtown area has seen a sales tax revenue increase of 10 percent above 2011-2012 thus far, with PCH and Aviation Blvd. business increasing 9 percent each.

Eating and drinking establishments comprise 38.63 percent of the generated sales tax revenue, with Other Retail Stores, its closest competitor, at 11.54 percent.

Receipts from the "hotel tax," aka transient occupancy tax, are reported to be up 8 percent from the previous year and approaching $2 million, the highest level ever for the city.

"Hotels are generally the highest revenue-producing use for the city for property in Hermosa Beach," according to the online budget document. "An advantage of the transient occupancy tax as a local revenue source is that it is paid by visitors, rather than residents, to help maintain our city services and the tax is collected by and stays in Hermosa Beach rather than going to the State or County coffers first."

The budget also includes a new $4,000 signing bonus for police officers, a $10,000 employee recognition instant bonus and another $25,000 in salary for the yet-to-be recruited police chief.

In his opening note to City Council, Bakaly writes, "The City of Hermosa Beach has a lot of big decisions ahead of it over the next few years. This budget balances City Council’s recently adopted goals of maintaining a 'Financially Sound City Government' while being a 'High Performing City Providing 1st Class Services.' Fiscal Year 2013-14 marks a year of planning, temporary service level increase and transition."