It's not yet clear which fees will change or by how much.
A report conducted by a third-party firm found that the city is spending $3.6 million more on services than it collects in fees.
"City Council members will be discussing this study in detail with the community to determine what, if any, fees should be changed," said Mayor Tucker.
According to the report, police responses to false alarms cost the city $32,822 each year. Booking and processing people for crimes runs $238,021 and building plan checks and inspections cost the city $1,034,450 a year.
A preliminary budget will be submitted by City Manager Steve Burrell to the City Council on May 15. Under city municipal code, the annual budget is to be be adopted by the City Council no later than June 13.
The fee discussion will take place at a pre-budget study session on Thursday at 6:30 p.m. in Council Chambers located at 1315 Valley Drive.
We'll have more on the possible fee increases as the story develops.
Here's the press release from the city:
HERMOSA BEACH, CA - To ensure the city remains financially sound and continues to provide the public services its residents deserve, the Hermosa Beach City Council is scheduled to launch its review of the cost of each facet of local government on Thursday as a first step in adopting a fee structure to protect local taxpayers.
"In our continued focus on prudently managing our local resources and revenues, the members of the City Council engaged an independent firm to closely examine the costs of all aspects of our local government operations to ensure we're fully informed as we make choices about the future direction of the city's budget in these challenging economic times," said Mayor Peter Tucker. "This study is a great starting point for assuring Hermosa Beach's financial future and maintaining the high quality of public services for which our city is known."
The Council, at a pre-budget study session on Thursday, is scheduled to receive and discuss the 427-page study, which details the expense of each of the city's public services. It divides these services into two categories: community-supported public services, such as police and fire protection which benefit all members of the community, and personal choice public services, such as dance classes and building permits which are provided to an individual or group and could be withheld if payments weren't made.
The study notes that the property tax-cutting measure, Proposition 13, and subsequent initiatives that implemented Proposition 13 required cities to rely on fees to cover the cost of personal choice public services. It also notes that fees often don't match the cost of the services provided, and this can result in general fund revenues being spent on personal choice public services.
Altogether, the report found the city is spending $3.6 million more on the personal choice public services than it collects in fees. But the study points out that the City Council may wish to continue to support some of these services because of the benefits they provide to the broader community. It also notes that some services, such as booking someone into jail, cannot be covered by fees and charging large enough fees to cover the costs of some services would result in their cancellation because they would be too expensive for an individual or group to pay.
"City Council members will be discussing this study in detail with the community to determine what, if any, fees should be changed," said Mayor Tucker. "We welcome Hermosa Beach residents to join us in this ongoing discussion as we chart the budgetary future for our city and its services."
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