How Hermosa Beach is run

Who runs Hermosa Beach, what it costs, and where your money goes

The city manager, council pay, the budget, your property tax bill and who provides each service, from Hermosa Beach's own public documents. Every number links to its source and says which year it describes. Checked Oct 9, 2026.

Who runs Hermosa Beach

A city manager hired by the council runs the city day to day. The council sets policy, adopts the budget and sets the tax rate.

City of Hermosa Beach · Mar 31, 2026

What they are paid

City manager Steve Napolitano: base pay$270,0002025-12-10. City of Hermosa Beach · Dec 9, 2025
In the contract
  • Three-year contract starting December 10, 2025
  • Yearly raise of up to 3%, tied to Los Angeles-area inflation, if the council rates his work above satisfactory
  • CalPERS pension and the benefits of other city executive managers
  • 114 hours of vacation available from the first day
A council member$10,176 a year2026-07-01. $848 a month. City of Hermosa Beach · Jul 1, 2026
The mayor$10,176 a year2026-07-01. The salary schedule lists one rate, $848 a month, for the City Council and no separate rate for the mayor. City of Hermosa Beach · Jul 1, 2026

Hermosa Beach city staff

148 full-time-equivalent positions, including Police and community services 67, Public Works 36, Administrative Services 15, Community Development 14, Parks and Recreation 8. FY2026-27. City of Hermosa Beach · Jun 23, 2026

Police are city employees. Fire, lifeguards and ambulance transport are provided by Los Angeles County and a contractor, so those workers are not on the city payroll. The city posts its salary schedule, labor agreements and the State Controller's yearly pay reports. We did not pull pay bands from the State Controller's database. We name pay only for elected officials and the city manager.

Is Hermosa Beach in the red?

Cities must pass a balanced budget, so "profit" and "deficit" mean something different here. The useful questions: does the city's everyday money (the general fund) cover its everyday costs, how much does it keep in savings compared with its own target, and how big are its pension and debt bills.

General fund, FY2026-27$59.9MOut of $83.6M across all city funds, which includes utilities and other money that can only be spent on one thing. City of Hermosa Beach · Jun 23, 2026
Savings grew, FY2024-25 (audited)+$3.2MGeneral fund revenue $55M, spending $50.4M. Took in $4.6M more than it spent before transfers. After $1.4M of net transfers to other funds, general fund balance rose $3.2M, to $20.3M. City of Hermosa Beach · Mar 31, 2026

The city's own outlook

The city entered FY2026-27 with a projected structural deficit of about $3.2M. It balanced the budget mainly by pausing about $2.1M of equipment replacement contributions, including all vehicle purchases, and about $1.1M of reserve contributions, plus $1.3M of department cuts. It projects a $1.3M general fund surplus for the year. The five-year forecast shows spending above revenue from FY2027-28, with projected deficits of $3.8M to $5.6M. The county fire contract ends in December 2027. City of Hermosa Beach · Jun 23, 2026

Savings against the city's own target

Unassigned general fund balance: $2.9M (2025-06-30). The city's own target: Keep a contingency reserve equal to 20% of general fund appropriations. The city holds it as assigned fund balance, $10.56M at June 30, 2025, separate from the unassigned balance. The FY2026-27 budget pauses the yearly top-up of about $1.1M, so the planned reserve level drops from 20% to 18%; the forecast expects to reach 20% again in FY2029-30. City of Hermosa Beach · Mar 31, 2026

Pension promises not yet funded$61.2M(2025-06-30). CalPERS

Why we skip the "budgeted deficit": many cities plan to dip into savings, then spend less than planned. The audited result tells you what really happened.

Where the money comes from and goes

The general fund only: the city's everyday money for FY2026-27.

Comes from

  • Property taxes (including property tax in lieu of vehicle license fees)$27.9M · 48%
  • Service charges (parking meters and lots, ambulance, plan checks)$10.7M · 18%
  • Hotel tax (transient occupancy)$5M · 9%
  • Sales taxes$4M · 7%
  • Utility users tax$2.6M · 4%
  • Fines (mostly parking)$2M · 3%
  • Interest, rents and leases$1.7M · 3%
  • Business license tax$1.3M · 2%
  • Other (franchise fees, permits, property transfer tax, state aid, misc.)$3.1M · 5%

City of Hermosa Beach · Jun 23, 2026

Goes to (FY2026-27)

  • Public safety$30.1M · 50%
  • Public works$11.2M · 19%
  • Management and support$5.7M · 9%
  • Community development$3.1M · 5%
  • Parks and recreation$2.7M · 5%
  • Legislative and legal$2.2M · 4%
  • Transfers to other funds (capital projects, bond payments, storm drains, insurance, lighting district)$4.4M · 7%
  • Other (street capital projects)$525,000 · 1%

City of Hermosa Beach · Jun 23, 2026

Your property tax bill: who gets it

The 1% base levy plus the voter-approved school, college and water district rates, as listed in the city's audited report. The city itself has no separate voter-approved property tax rate.

0¢

of each property-tax dollar goes to the city of Hermosa Beach

  • 1% base levy (shared by the county, schools, the city and others)1 · 94%
  • Hermosa Beach City School District bonds0.033242 · 3%
  • El Camino Community College District bonds0.021012 · 2%
  • Metropolitan Water District0.007 · <1%
  • Total ($ per $100 of assessed value)1.061254

FY2024-25 rates for a home in Hermosa Beach (Los Angeles County). City of Hermosa Beach · Mar 31, 2026

Who provides your services

Not everything in Hermosa Beach is run by the city. Who provides a service decides whose budget pays for it and whose election decides it.

Compared with similar cities

The cities in this state closest in population that we cover. Read it for scale, not as a ranking: cities provide different services.

PinoleCAHermosa BeachCASanta Fe SpringsCASouth El MonteCA
Residents18,89119,19619,22919,489
Top administrator's base pay$305,000$270,000$359,100$268,800
Council member payNot confirmed$10,176$12,233Not confirmed
General fund per resident$1,585$3,120$5,933$1,439
Debt per resident$1,545$336$2,186$518
Unfunded pension per resident$2,369$3,191$7,940$35
City staff per 1,000 residents6.17.712.55.2

Figures as shown in each city's section, divided by its population. Years differ by state, and pension figures are measured differently in each state (each city page says how). Pinole and Hermosa Beach and Santa Fe Springs and South El Monte pays another agency for police or fire, so its own staff count is lower.

What Hermosa Beach publishes

What a resident can find online today. A "no" is something you can ask the council to publish.

  • Yes: Adopted budget posted onlineThe city's budget page posts the FY2026-27 adopted budget as an interactive online book and a searchable PDF. City of Hermosa Beach
  • Yes: City manager's contract findable onlineThe city's Laserfiche records portal posts Resolution RES-25-7529 with the December 2025 employment agreement attached. City of Hermosa Beach · Dec 9, 2025
  • Yes: Council votes recorded member by member onlineMinutes list ayes and noes by name, e.g. the 4-1 vote hiring the city manager on December 9, 2025, with Ray Jackson voting no. City of Hermosa Beach · Dec 9, 2025
  • Yes: Meeting videos and minutes onlineThe eScribe portal posts agendas, minutes and video of council meetings; meetings also stream on YouTube. City of Hermosa Beach
  • Yes: Council pay stated in a public documentThe citywide salary schedule lists the City Council at $848 a month and the treasurer at $530 a month. City of Hermosa Beach · Jul 1, 2026
  • Yes: Employee pay publishedThe city posts its salary schedule and labor agreements, and links the State Controller's pay reports by job class for 2009 through 2025. City of Hermosa Beach

Questions to ask your council

  1. The FY2026-27 budget closed a $3.2 million gap mainly by pausing about $2.1 million of equipment replacement contributions and about $1.1 million of reserve contributions. When will those contributions resume?
  2. The five-year forecast projects deficits of $3.8 million to $5.6 million. What revenue or spending changes would close that gap?
  3. Public safety is $30.1 million of general fund spending in FY2026-27, and the county fire contract ends in December 2027. What does the city expect a new fire contract to cost?

See who is running for council

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