Honorable Mayor and Members of the Hermosa Beach City Council
Adjourned Regular Meeting of March 3, 2022
Title
REVENUE STUDY SESSION
(Finance Director Viki Copeland)
Body
Recommended Action:
Recommendation
Staff recommends City Council receive the staff presentation and discuss the Revenue Study Session Discussion Items (Attachment 2) and the updates provided herein.
Body
Executive Summary:
The attached list of revenue sources (Attachment 2) reflects both City Council and staff suggested items for review. Status updates are provided in red for items that are already complete or are in progress. No formal action may be taken by the City Council at the Revenue Study Session. However, the meeting is an adjourned City Council meeting so action may be taken during the Adjourned Council Meeting after the study session if desired.
Background:
The Revenue Study Session was originally scheduled for April 30, 2019. Instead, the Capital Improvement Study session was moved from April 23, 2019 to that date and the Revenue Study Session was postponed.
At the hearing and adoption of the FY2019-2020 Budget on June 11, 2019, City Council approved placing a measure on the ballot to increase the Transient Occupancy Tax from 12 percent to 14 percent. After passage of the measure in November 2019, the Revenue Study Session was scheduled for March 2020. With the ensuing emergency declaration on March 16, 2020 due to COVID-19, the Revenue Study Session was again postponed.
Discussion:
An overview of the City’s revenue sources and a list of discussion items is included the Revenue Study Session Slides (Attachment 1). The Revenue Study Session Discussion Items (Attachment 2) is a list of revenue sources reflecting both City Council and staff suggested items for review. At this time, some items are complete and others are in progress. A status update is included with the list of items and shown in red. The list is separated into the following sections:
1. Taxes;
2. Use of Property and User Fees; and
3. Other Funding Sources.
Also included is the Revenue Report for November 2021 for reference (Attachment 3).
Jeff Cooper, Vice President of NV5, will join us for discussions of Items B3c regarding the Sewer Service Charge and B3e regarding the Evaluation of the Lighting District. Bobby Young, Director of Client Services for HdL, will join us at 6:00 p.m. for Item A2b regarding the discussion of the District Transaction and Use Tax. HdL provides the City’s software and reporting for sales tax and business licensing.
Staff requests City Council discussion and feedback on the items presented, as well as any new items. Council may take action on items or give direction to staff after the study session at the Regular Adjourned City Council Meeting.
General Plan Consistency:
This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:
Governance Element
Goal 1. A High degree of transparency and integrity in the decision-making process.
Policy:
• 1.6 Long-term consideration. Prioritize decisions that provide long-term community benefit and discourage decisions that provide short-term community benefit but reduce long-term opportunities.
Goal 6. A broad-based and long-term economic development strategy for Hermosa Beach that supports existing businesses while attracting new business and tourism.
Policies:
• 6.1 Long-term economic development. Support the development and implementation of long-term development strategies that seek to establish and keep new businesses and a strong middle class in Hermosa Beach over the decades to come.
• 6.3 Diversified Economy. Encourage economic development strategies that allow the city to move beyond reliance on its two main industries - accommodation and food service and retail trade - and transform itself to a mature mix of economic activity and job opportunities.
• 6.7 Retail base. Encourage economic development reflective of the character of Hermosa Beach with small and medium scale retail development within Hermosa Beach in order to create a stronger tax base and increase the City’s tax revenue.
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Attachments:
1. Revenue Study Session Slides
2. Revenue Study Session Discussion Items
3. Revenue Report for November 2021
Respectfully Submitted by: Viki Copeland, Finance Director
Approved: Suja Lowenthal, City Manager