What does it cost a single homeowner to keep the only independent police department on the Palos Verdes Peninsula? Since 2018, part of the answer has been a line on the property tax bill that has nothing to do with what the house is worth. Rancho Palos Verdes, Rolling Hills and Rolling Hills Estates all contract with the Los Angeles County Sheriff's Department, as the Daily Breeze reported in October. Palos Verdes Estates pays for its own department, and a parcel tax covers a large share of the cost.
Voters have now been asked twice in 2026 how that tax should work after it expires. The two proposals differed in more than size. They put the cost on different households. Measure PVE, which went before voters on November 3, would move most of the burden onto a flat charge on each parcel. Under that design, a 1,800-square-foot home would see its bill nearly double, while a 5,000-square-foot home would see an increase of about half.
A Tax That Ends on June 30, 2027 No Matter What
Measure E passed in April 2018 with 3,940 yes votes, or 69 percent, according to the City of Palos Verdes Estates election page. It charges $342 per parcel plus 20 cents per square foot of building improvements and raises about $5.1 million a year, roughly 20 percent of the city's General Fund revenue. It was written with a fixed expiration date of June 30, 2027.
The department costs more than the tax brings in. The city puts the FY 2026–27 Police Department budget at about $8.7 million, and the General Fund covers the roughly $3.6 million gap. On the city's Measure PVE page, officials give three reasons the General Fund cannot simply absorb more:
- Palos Verdes Estates receives about 11 cents of every property tax dollar its homeowners pay.
- The city has very little commercial property.
- It levies no hotel, sales or utility users taxes.
The city says the FY 2026–27 adopted budget has a structural deficit of about $1.5 million, balanced with reserves. Since 2018 it has eliminated three sworn officer positions and four full-time non-sworn positions.
Both 2026 measures were written to address that problem, and they proposed very different ways of paying for it.
June's Measure PF Charged Mostly by the Square Foot
Measure PF was a citizen initiative from the local group Palos Verdes Estates Residents for a Safe, Secure Future, with the PVE Police Officers Association listed among its supporters. It proposed a 10-year parcel tax of $990 per parcel plus 67 cents per square foot. The tax would have raised about $16.2 million a year for police services, fire and emergency medical services, and wildfire preparation.
As a citizen initiative, it needed only a simple majority. It got 2,642 yes votes, or 41.29 percent, against 3,757 no votes, according to the official Los Angeles County results. In its coverage after the vote, the Daily Breeze reported that opponents considered the proposal too large and did not trust its budget projections.
Because PF's per-square-foot rate was more than three times Measure E's, house size drove most of the cost. A large home would have paid far more than a small one.
November's Measure PVE Puts the Weight on the Parcel
The City Council wrote Measure PVE after PF failed. It sets a smaller total and splits the cost differently. The base charge rises from $342 to $1,025 per parcel. The square-foot rate stays at Measure E's 20 cents. Starting in FY 2028–29, the rates rise 2 percent a year. The measure would raise about $8.7 million a year for six years, which matches the current police budget, and it would end June 30, 2033.
Because only the base charge changes, every parcel would pay the same $683 more per year in the first year, whatever its size. In the city's words:
"Police services provide a community-wide benefit and are not used based on the size of a home, so the measure sets a base per-parcel amount of $1,025 while keeping Measure E's existing 20¢ per-square-foot rate unchanged."
A flat dollar increase lands very differently depending on the starting bill. The table applies each measure's published rates to three home sizes, using first-year rates before any annual adjustment. The 2,745-square-foot row is the city's own median-home example. The other rows apply the same published rates to other sizes.
| Building size | Measure E, current | Measure PVE, first year | Increase under PVE | Measure PF rates, for comparison |
|---|---|---|---|---|
| 1,800 sq. ft. | $702 | $1,385 | +97% | $2,196 |
| 2,745 sq. ft. | $891 | $1,574 | +77% | $2,829 |
| 5,000 sq. ft. | $1,342 | $2,025 | +51% | $4,340 |
Under PF, the 5,000-square-foot home would have paid nearly twice as much as the 1,800-square-foot home. Under PVE, the gap is smaller than under either other design, at $640 a year. The city notes that actual amounts depend on each parcel's characteristics and building square footage.
Why a Buyer's Estimate Can Miss This Line
The city states plainly that the tax is calculated as a base amount plus a square-foot amount and "is not based on property value." That makes it easy to leave out of a quick monthly-cost estimate built as a percentage of the purchase price. The parcel tax does not change with the price.
The redesign would make the flat part of the bill larger. Under Measure E, the per-parcel base is $342. Under Measure PVE, it would be $1,025 before the 2 percent adjustments begin. Every household would pay that base whether it bought last month or decades ago, and whether the home is a cottage or an estate. The 2 percent adjustment then compounds. The city estimates the median home's bill at $1,574 in FY 2027–28, rising to about $1,738 by FY 2032–33.
On a smaller home, this line makes up a larger share of annual carrying costs than it does on a large one. Anyone comparing a PVE property with a similar home in a city served by the Sheriff's Department will reach a more accurate monthly figure if the per-parcel amount is counted separately.
What Each Outcome Sets in Motion
Measure PVE needs 67 percent support, a higher bar than the simple majority PF failed to reach. The city has cleared that bar before and missed it before. In March 2017, Measure D, a parcel tax for fire suppression and paramedic services, received nearly 60 percent support but fell short of two-thirds, as the Daily Breeze recounted last year. Measure E passed with 69 percent a year later. The Los Angeles County Registrar-Recorder/County Clerk publishes the official count at lavote.gov.
If the measure passes, the new rate begins July 1, 2027. Revenue is restricted to two uses: about $7.7 million a year for Police Department services and $1 million a year toward the city's unfunded CalPERS pension liability. Using an actuarial analysis, the city projects that the $6 million in extra pension payments would avoid about $19 million in long-term pension costs. That projection depends on investment returns and wage growth. The measure includes these accountability terms:
- Revenue goes into a separate, dedicated account.
- The city reports each year to the City Council on funds collected and spent.
- Independent audits are reviewed at publicly noticed meetings.
- The Finance Advisory Committee provides oversight.
- No funds may go toward acquiring or leasing property or building new law enforcement facilities.
If it fails, the $5.1 million still ends June 30, 2027, about 20 percent of General Fund revenue. City Manager Kerry Kallman told the Daily Breeze in October that the council "would need to look at service cuts, additional deferred maintenance, and staffing impacts in order to balance its budget." He said that loss, combined with the $1.5 million operating deficit, "would be about 30% of our budget." In the same article, Mayor Pro Tem Derek Lazzaro said the city would have to hire the Sheriff's Department, "which would still cost millions." He said closing the remaining gap would likely mean cutting hillside weed abatement and the paramedic squad vehicle.
Kallman also said that even if the measure passes, the city would look for non-tax revenue such as grants and would "take another look at paid parking opportunities."
FAQ
Would owners pay Measure PVE on top of Measure E?
No. The city says Measure PVE is an extension that replaces Measure E's rate when Measure E expires. Measure E's rate applies through June 30, 2027, and the new rate would begin July 1, 2027. Property owners would never pay both.
Does a larger home pay more under Measure PVE?
Yes, through the unchanged 20-cent-per-square-foot charge. The $683 increase, though, is identical for every parcel, so a larger home's bill rises by a smaller percentage.
Can the state or county redirect the money?
The city says that as a voter-approved special tax, all of the revenue stays in Palos Verdes Estates in a dedicated account limited to the measure's stated purposes.
This post is general information about a local tax measure. It is not legal, tax or financial advice, so please confirm how any parcel tax applies to a specific property with your tax professional or the county.
If you are weighing a purchase or sale in Palos Verdes Estates and want the parcel tax worked into a realistic carrying-cost estimate for a specific home, Jane Angel can walk through the numbers with you before you make an offer or set a price. Book an Appointment.
