Officials Seek Shortfall Solutions

Projecting a $356,000 budget deficit for the 1991-92 fiscal year, Hermosa Beach city officials moved Tuesday night to explore a number of revenue-producing solutions to the financial woes.

In his midyear review of its $17.3-million budget, City Manager Kevin B. Northcraft blamed the economic recession and the departure of several key businesses for the shortfall.

Hermosa Beach adopted a two-year balanced budget in 1990. To offset the expected shortfall, Northcraft suggested several line-item budget revisions, ranging from $200 in office supplies to $37,000 in employee benefits savings. The cuts would eliminate $300,000 from city expenditures, he said.

Among the revenue-generating ideas is a plan to increase the all-day parking rates from $4 to $7 at one beach parking lot near the pier, a 2% increase in the city’s hotel bed tax and a new commercial-landlord business license fee. The council rejected a proposal to place more parking meters along Manhattan Avenue, which would have added $6,000 to the general fund. The council will consider the plans in July.