4. Regarding Measure E Expiration:
Background: Measure E, a $5 million parcel tax containing no annual escalation factor, was passed in November 2018, specifically designated to fund (albeit partially) the Palos Verdes Police Department.
The PVE Finance Advisory Committee (FAC) recently forecasted that the City will face annual structural operating deficits beginning in FY 24-25, increasing $8.6 million annually after Measure E sunsets at the end of FY 26-27, and the deficits will continue to increase in subsequent years.
Questions:
How would you propose to cover the City’s looming revenue shortfall?
With respect to any proposed replacement for the current Measure E, would you support replacement with a new identical parcel tax (same parcel tax level, no escalator), replacement with a new parcel tax to more fully cover the anticipated future cost of the city (new parcel tax level with or without an annual escalator), and/or reduce city services?
If a new tax needs to be drafted, what do you think the City should do to inform and include the residents in the decision- making process in order to draft the right tax to ensure PVE’s future financial well-being?