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Hermosa Beach weighs large fee increases after cost-of-service study; council phases changes and pulls contested items for review
Summary
City staff presented a cost-of-service study recommending broader fee changes to recover costs across departments. Council approved moving the package forward with a phased implementation but pulled a set of specific fees — including some planning and encroachment items — for additional staff analysis after residents raised concerns about community impacts.
City staff told the Hermosa Beach City Council on April 28 that a consultant-led cost-of-service study found many municipal fees were substantially below the cost to provide those services, creating hidden subsidies paid from the general fund.
“At a department level, roughly 63% of costs are recovered on the community development planning and building side and roughly 78% on the public works side,” said Director Brandon Walker during a presentation opening the public hearing on the draft master fee schedule. Walker said a full implementation of the study’s recommendations could yield about $1,000,000 in additional annual revenue for the city while warning that many residents would feel “sticker shock.”
The study, completed by RCS Revenue Cost Specialists and presented by staff, excluded parks and recreation and certain market-based event fees from the current analysis; staff said those areas will receive a separate, parallel review. Walker said the analysis recommends shifting most planning fees from a property-value…
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