Huntington Beach council majority approves a 3-year, $9.8M police contract that mayor calls ‘unsustainable’
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The last vote of the night in the Huntington Beach City Council chambers Tuesday was met with loud applause from off-duty police officers on hand.
The council voted 4-3 to approve a memorandum of understanding with the Huntington Beach Police Officers Assn. that will give the officers a 17% total raise over the length of the three-year contract.
The contract, which was slated to start on July 1, runs through June 30, 2029. It includes pay increases of 8% the first year, 4% the second year and 5% the third year, for a total cost of $9.8 million over the life of the contract. The previous contract, approved in 2023, gave the department a 15% bump.
Mayor Pro Tem Butch Twining, along with Councilmembers Andrew Gruel, Chad Williams and Gracey Van Der Mark voted in favor of the contract. Mayor Casey McKeon and Councilmembers Pat Burns and Don Kennedy voted against, saying the city’s harsh financial realities in future years prevented them from voting yes.
“Yes, we have to work on our financials some more, but I cannot in good conscience not do this,” said Van Der Mark, who is a candidate for state Assembly. “I cannot risk the safety of the community … I just need to put the public safety first. It is our No. 1 role.”
Council sought analysis on potential for bankruptcy
The council voted 4-3 at its Aug. 18 meeting to refer the police contract proposal to the Finance Commission for review, along with asking key officials for a five-to 10-year financial analysis on bankruptcy risk for the city.
A bleak 10-year financial forecast, presented by Chief Financial Officer Zack Zithisakthanakul and finance manager Robert Szilagyi, showed projected ballooning debt in future fiscal years. With POA cost of living adjustments and a 5% salary attrition rate factored in, the budget deficit was projected to reach $82 million by fiscal year 2035-36.
Without the POA adjustments, the budget deficit in that year would be just south of $75 million.
“The bottom line is, under both models, long-term expenditure growth outpaces revenue growth, driving compounding structural deficits,” Szilagyi told the council. “Even with the 5% attrition, this trajectory shows the organization needs careful managing and a course correction.”
The city also has CalPERS unfunded accrued liability payments and pension obligation bonds to consider, with slightly more than $99 million in general fund reserves on hand.
Zithisakthanakul noted that long-term forecasts made on today’s assumptions become more speculative, and none of the information presented established that Chapter 9 bankruptcy was imminent or inevitable.
Williams noted that an increase of 1% in income and a decrease of 1% in expenses would flatten the budget deficit chart. Proponents of the contract also maintained that it was not close to being solely responsible for future budget deficits.
Kennedy tried to table approval of the police contract until after this November’s election, so the new city council could vote on it. But his substitute motion died after he was reminded by City Atty. Mike Vigliotta that the contract had to be acted on within 30 days.
“It sounded good on paper,” Kennedy said of his idea.
‘Unsustainable,’ mayor says
McKeon explained his concern about the contract.
“Based on the financial analysis we just went through, we don’t have a way to pay for it,” the mayor said. “Unfortunately, this just increases the velocity of our deficit … This is unsustainable and can’t continue. At some point, some city has to have strong financial prudence and say, ‘Look, this is what we can afford. Let’s work together, let’s bring up revenues and then maybe reopen your contact.’ Based on the situation where it is today, not being able to pay for it, I have to vote no.”
Burns, a longtime former police officer in Long Beach, agreed, calling the contract “fiscally reckless.”
Several of the police officers on hand spoke in support of the raises during public comments, saying it was necessary to remain the department remains competitive in recruiting.
“The landscape of modern law enforcement recruitment has not gotten any easier,” said Read Parker, a detective with HBPD and Huntington Beach resident. “We are operating in an environment where qualified candidates are scarce, and the competition among regional agencies for top-tier talent is fierce ... [This agreement] sends an unmistakable message that Huntington Beach stands behind its officers and recognizes the realities of today’s market.”
