PreservePVE: Where did the Money Go?

PVE Community Newsletter

Serving Lunada Bay, Malaga Cove, Montemalaga and Valmonte

This Issue

Financial:
- Where Did the Money Go?
- Pension Debt Jumps to $29 Million
- Debt Growing Faster than Revenue
- Tax Increases for Tree Health Care?
- City Increases cost of Public Records 600%
Welcome new City Manager and Police Chief
Q&A
- Should Newsletters be taken as gospel?
- What is the cost of using a special election for the City’s parcel tax?
- Is a Tree Inventory needed to schedule trimming?

Where Did the Money Go?

City’s unexpected $8.3 million bonus:

-2024 Net savings of 25% staff vacancies: $872,000
LINK (discussed at time 26:00)

-Staff Vacancies in 2020-2023: 13-25% annually 2020 2021 2022 2023 (payroll shown at end)

-Federal COVID (ARPA) funds: LINK (page 21)

However:

2023: City warns they are spending reserves LINK
2024: Council passes $2.4 million budget deficit LINK (5th page)

Where did the $8.3 million go?

—-

Pension Debt Jumps to $29 Million

Auditor explains VIDEO the $9.3 million pension “asset” will be “paid out as an expense in the future”.

He states the $20 million pension liability shown is “as of” 2021, and the additional $9.3 million occurred after 2021.

Pension debt as of 2023: $29 million

The $52 million balance sheet shown, will drop $18 million when these investment losses are recognized in the future as an expense (VIDEO).

Other Auditor Findings: LINK

—-

Debt Growing Faster than Revenue

PVE underpays the cost of pensions each year causing debt to mount.

This is like charging on your credit card while only paying the minimum payment for years. The debt keeps increasing causing unaffordable taxes and reduced services.

How bad will things get?

History:

2020: Prior Pension Adhoc presented a solution to fully fund pensions LINK, presented HERE and dismissed by Council without explanation.

2022: Council passed a pension policy that underpays pensions, causing debt to grow. LINK

2024:

Council vacated their 2022 Pension Policy because it relies on budget surpluses. Yet, their 10-year forecast shows there are no surpluses. LINK

Isn’t it time we face our problems?

—-

City Increases cost of Public Records 600%

2017: $30,000 annually

Prior Council paid annual cost of $30k for self-service transparency tools LINK (Pages 1-2, tools: OpenGov, Questys, etc.)

Today: $150,000 annually

Council has closed down these self-service transparency tools
Council now pays a group of contracted attorneys to scrutinize each public record before release at an annualized cost of $150K March Invoice April Invoice

In contrast, RPV provides transparent financials with OpenGov LINK and access to City Contracts LINK

Reduce deficit spending with efficiencies

—-

Tax Increases for Tree Health Care?

CM Lozzi explains: LINK (start time is 3:43:30)

The Tree Inventory ($200k) is needed for the new Tree Management Plan

This follows Carmel, Indiana’s Tree Inventory and Tree Management Plan LINK to monitor and provide health support for all trees.

PVE has 20,500 public trees. How much will this cost a city running a deficit?

What are the residents’ priorities?

—-

Welcome Kerry Kallman, as our official new City Manager

Welcome Luke Hellinga, as our official new Chief of Police

—-

Should Newsletters be taken as Gospel?

Readers should assess facts on merit. Look for cited sources to confirm facts, such as the links in the articles. This includes newsletters from the city and community.

Trust but Verify

—-

What is the cost of using a special election for the City’s parcel tax?

Council decided to skip the Nov general election and use a March Special Election for their Parcel Tax. The County charges cities $75,000 for special elections. The cost was not disclosed when Council chose to use a special election. LINK

—-

Is the purpose of the Tree Inventory to schedule trimming?

No. The $200,000 inventory does not include trimming schedules or view impacts.

The inventory data collected consists of tree characteristics and each tree’s health needs. LINK (see page 7 of contract) Most of the 20,500 trees inventoried are in the forest.

A simple excel spreadsheet by street name is an effective and affordable solution to create a tree trimming schedule in our residential areas.

—-

Palos Verdes Estates’ unique charm is reflected in its magnificent trees, ocean vistas, architecture, dedicated open space, protected coastal habitats, and scenic roadways. The PreservePVE Newsletters focus on land, good governance practices, safety, and community.

We are residents preserving and supporting our beautiful City

We love hearing from you

Newsletter subscription requests: Link

Comments: email Info@PreservePVE.org

Prior Newsletter Issues: LINK (bottom of page)

Disclaimer: LINK