PVE Budget Facts – “Safety” Tax is Double PVE’s Documented Funding Gap
What PVE’s Budget Documents Actually Show
This summarizes only the City of Palos Verdes Estates’ own published budget and fiscal outlook documents to show the actual budget gap to derive the tax amount. Assumed new taxes and other external assumptions are excluded.
Executive Summary
City budget documents show a recurring funding gap of roughly $8 million per year to maintain current service levels after Measure E expires.
The proposed parcel tax of $16.25 million per year would cost taxpayers more than double the amount needed.
The chart below compares the City’s documented annual $7.8 million funding gap to the proposed $16+ million “Safety” parcel tax.
Cited from the City’s FY 2025–26 Adopted Budget and Fiscal Outlook (click for links)
The City’s Documented Funding Gap
Based on the City of PVE FY 2025–26 Adopted Budget and Fiscal Outlook, the recurring funding gap is $7.8 million consists of the following components
What Happens After Measure E Expires
Measure E currently provides $5.1 million per year in revenue. City documents state this revenue expires after FY 2026–27.
Absent replacement revenue, the City would face:
Existing operating deficits of approximately $2.7 million per year, plus
The loss of $5.1 million per year from Measure E
This results in a recurring funding gap of approximately $7.8 million annually.
The proposed $16.25 million “Safety” tax will cost taxpayers twice the amount shown as necessary in the City’s own budget documents.
Why This Matters
Residents evaluating tax proposals should be able to see:
The size of the documented funding gap
How proposed taxes compare to that gap
Whether additional revenue beyond the gap is justified
Those questions should be answered by the City’s own financial documents.
Closing
City’s published budget documents show a gap of $7.8 million per year to maintain current services. The proposed parcel tax would cost taxpayers more than double that amount.
If additional revenue is required beyond the documented gap, a reconciled projection explaining the difference should be published so residents can evaluate it.