PVE Community Newsletter

Serving Lunada Bay, Malaga Cove, Montemalaga and Valmonte

Parcel Tax Fast Facts

Key Issue: City Tax Proposals

$7 million "Baseline" Tax: Continues current city services. Average cost is $1,400/year per household

$17.5 million Tax: Adds new (not yet specified) services. Average cost is $3,500/year per household

Main Concerns - Spending Problem

• PVE already receives more tax revenue than other PV Cities (see below).

• Value: City is unable to articulate what residents get for $10.5 MM more a year

• No Real Choices: Residents aren't being given options to choose from

• Spending Decisions: City spending has increased by 9% per year for 6 years. Why?

Questions & Problems Identified

• Audit issues unresolved: the city continues to struggle to pass audits

• Staffing Issues: City positions have remained the same for years. Council advocates a 15% staffing increase for the same service levels. Why?

• Deficits and Debt: There is a $2 million deficit and growing pension debt ($20 million) costing over $1 million annually in interest payments.

• Conflicting/missing Information: Contradictory statements about funding and new tax needs were made at recent town halls.

• Missing Information: The City’s tax Q&A site does not answer most questions submitted by residents (link to resident’s questions)

Analysis of City Spending

• Capital Projects: City is using a $4.5 million placeholder because, admittedly, they have not analyzed how much is needed and the portions funded by grants and the County.

• Fund Balance: The city already meets its savings/reserve policy requirements. Replenishing funds that are never spent does not make sense.

• Special Projects: The "special" new projects lack identification and justification.

Wildfire and Safety Funding

• Wildfire Spending: The city's wildfire cost was $700,000 in 2025 The city manager said it could be cut by $400,000 by using goats, so why is $1.5 million proposed?

• County Funding: Los Angeles County Measure E, passed in 2024, which can be provided to cities for fire abatement which may eliminate the cost entirely.

Opportunities for Cost Savings

• Outsource Finance: The city has trouble hiring finance roles. Outsourcing has shown to save money, increase efficiency and target critical skills.

• Staffing Cost Review: Comparing employee costs with outside contractors shows potential savings.

• Private Sector Talent: The private sector offers critical skills.

• County and Grants: There are other sources of funding available from the County and from grants that the City can leverage.

Community Feedback

• Resident Requests: The City is not considering any of the cost savings and efficiencies suggested by Residents.

• Transparency Needed: The council has promised at the Apr 15th Town Hall to provide more detail on tax increases, but has not done so yet.

DETAILS

PVE Already Receives more Revenue than other PV Cities and has more Debt

Sources: 2024 audited financial reports RHE, RPV, RH & PVE

Already Taxed Higher than other PV Cities, only PVE Residents pay a Parcel Tax (Measure E)

Do we have a Spending Problem?

City Increased Spending 9% Annually, for 6 Years

Source: Audited Financial reports: LINK