Dedicated to fulfilling its identity as the “City of Good Neighbors,” Hawthorne focuses on sustaining a safe and functional environment for everyone who lives, works, and visits within the community. The City manages its public funds to ensure the stable delivery of daily services, prioritizing emergency response operations, street and sidewalk infrastructure, and public park facilities. 

While the City currently operates with a balanced budget, an independent fiscal study projects that the cost to maintain these services will eventually outpace revenues. This study identified a projected structural budget deficit beginning in FY 2035-36, which is expected to reach $1.7 million annually by FY 2040-41.

To address this projected shortfall and protect core services, the Hawthorne City Council voted on June 23, 2026, to place a TOT measure on the November 3, 2026, ballot. 

Proposed Adjustment and Revenue Projections

If approved by voters, the proposed measure would increase the City’s current TOT rate from 12% to 17%. The TOT is a hotel tax paid only by overnight visitors staying 30 days or less in Hawthorne hotels, motels and short-term rentals. It is not a tax on local residents or property owners.

The proposed measure is estimated to generate between $1.2 million and $3.1 million in locally controlled revenue annually and is projected to help offset the City's long-term structural budget deficit.

Because these funds would be deposited directly into Hawthorne's General Fund, they would be available to support daily community services, including:

• Maintaining Police and Fire response
• Repairing streets and sidewalks
• Upkeeping community parks
• Supporting neighborhood cleanliness programs, such as bulky-item pick-ups.

Strict Fiscal Accountability Ensures All Funds Stay Local

The City’s current TOT is subject to strict financial accountability requirements. If passed, the proposed increase would include these same safeguards:

• All funds raised could only be used toward local services and infrastructure within Hawthorne’s City limits
• The generated funds would be deposited directly into Hawthorne’s General Fund, which is subject to annual public budgetary reviews and independent financial audits.

We Are Here to Answer Your Questions

We are committed to providing information to the community about Hawthorne’s TOT Measure on the upcoming November 3, 2026, ballot. If you have any questions, please contact TOT@cityofhawthorne.org. 

Frequently Asked Questions