Jan. 15 (Bloomberg) — Newport Beach, California, where four ranking lifeguards earned more than the town's $109,677 median household income in 2012, may partially disband its municipal ocean rescue to deal with rising pension costs.

The Orange County city of 87,000, with a median home value of $1.5 million according to Zillow.com, is weighing bids from other governments and private companies for lifeguard services at Corona del Mar State Beach, which the municipality patrols, according to bid documents.

Newport Beach's oceanfront, including the state park, draws about 1.6 million visitors a year and averages 800 rescues annually, according to bid documents. With about 14 percent of Newport Beach's general budget going toward employee pensions, municipal lifeguards may be a luxury the town can't afford forever, City Manager Dave Kiff said by e-mail. Newport Beach isn't alone in the Golden State, said Michael Coleman, fiscal adviser to the League of California Cities.