Palos Verdes Estates Development News

Beach Club Budget Approved with Fee Increases to Fund Operations and Capital Improvements

The City Council reviewed and approved the fiscal year 2026-2027 operating and capital reserve budget for the Palace Verdes Beach and Athletic Club, along with revised fees. The club's budget projects $2.95 million in revenue, with 83% derived from member monthly fees, 7% from guest fees and day passes, and smaller percentages from swim lessons and facility rentals. Major expenses include labor ($1.7 million), the city concession fee (10% of gross receipts, $295,000), utilities ($260,000), and general insurance ($160,000). The club is increasing monthly operating dues by $20 for residents (to $300) and non-residents (to $350), and introducing a new $10 monthly capital fee for all members to address deferred maintenance and capital improvements. Initiation fees for regular resident memberships will increase from $12,000 to $16,000, and for resident resellable memberships from $24,000 to $26,000. The club has also allocated $94,000 for termite treatment and roof replacement, $51,000 for annual ADA projects, and other capital improvements, totaling over $300,000 in planned investments for the year. Since 2009, the club has invested nearly $2.5 million in capital improvements on the city-owned asset. Council members discussed the need for balanced revenue generation, potential impacts on resident access, and the club's long-term financial sustainability, ultimately approving the budget and fee increases.