Huntington Beach council delays police contract over bankruptcy concerns

The Huntington Beach City Council voted 4-3 on Tuesday to delay a proposed contract with the Huntington Beach Police Officers Association to conduct a deeper financial review. The memorandum of understanding includes a total pay increase of 17 percent over three years, consisting of an 8 percent raise this year, 4 percent in 2027, and 5 percent in 2028. The agreement is estimated to cost $9.8 million over its duration.

Concerns were raised regarding the city's fiscal stability, as the budget has already required tapping $15 million from reserves to remain balanced. Council members expressed worry that the contract could lead to bankruptcy given forecasted deficits. In response, the council directed the city manager and treasurer to prepare a five-to-10-year financial analysis focusing on bankruptcy risks and unfunded liabilities, as well as a series of financial options to avoid insolvency, due by September 1.

Supporters of the deal argued the raises are necessary for officer retention. However, Councilman Don Kennedy noted that 49 of the city's 50 highest-paid employees work for the police or fire departments, highlighting the significant portion of the payroll dedicated to public safety.