The city has approved a three-year contract that will boost the salaries of police officers and management personnel 10%, effective immediately.
The wage and benefits package also calls for a 5% wage increase in July, 1986, but no increase in the contract's final year.
Members of the Hermosa Beach Police Officers Assn. ratified the contract in a vote on May 4.
Four city councilmen approved the settlement in a closed session Tuesday night. Mayor George Barks opposed the agreement.
"The city is in a very serious financial position," Barks said during the regular council meeting. "I personally believe we cannot afford to grant even a 1% increase."
The city's police officers, sergeants, captains and lieutenants have been operating without a contract since Sept. 30.