Hermosa Beach Development News

Hermosa Beach Approves FY26-27 Budget, Advances Half-Cent Sales Tax Ballot Measure

The City Council reviewed and approved the fiscal year 2026-2027 budget, which included a $3.2 million deficit reduction through expenditure cuts and one-time actions, such as deferring vehicle purchases and minimizing contributions to general fund reserves. The budget maintains core services and quality of life, with department reductions totaling $1.3 million. Additionally, the council addressed potential revenue measures for future deficits, including sales tax and transient occupancy tax (TOT) ballot initiatives. A half-cent sales tax increase was approved for the November ballot, projected to generate $2 million annually. A proposed TOT increase and tiered rates for short-term rentals did not pass.