If approved, the measure would extend the Measure E tax property owners already pay for six more years at a new rate, beginning July 1, 2027 (it is not an additional tax, and property owners would never pay both). Every property would pay $683 more per year, about $57 more per month, than it pays under Measure E today, regardless of home size.

Measure E is a voter-approved parcel tax passed in April 2018. It generates approximately $5.1 million annually, restricted to supporting the Palos Verdes Estates Police Department, and was approved with a built-in expiration date of June 30, 2027. Unless voters approve extending it, that revenue, approximately 20% of total General Fund revenues, ends after Fiscal Year 2026–27.

Measure E currently generates approximately $5.1 million annually, but the Fiscal Year 2026–27 Police Department budget is approximately $8.7 million (the General Fund covers the difference). The proposed funding level is tied to the current cost of the Police Department, including a dedicated $1 million annual payment toward the City's unfunded pension liability. Measure E's rates have also never changed since 2018, while cumulative inflation has exceeded 30% and the cost of providing services has grown, reducing the purchasing power of its revenue.

The City Council structured the measure so that a larger share of the cost is shared evenly across all properties. 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. Because the square-foot rate does not change, every property pays the same $683 more per year than under Measure E, with any additional cost varying only by building square footage, as it does today.

In Fiscal Year 17/18, the Police Department budget was $7.1 million. When Measure E was passed in 2018, it was designed to contribute $5.1 million toward the Police Department's overall budget per year. The Police Department now costs approximately $8.7 million per year, and the General Fund currently covers the difference. Renewing at the current $5.1 million would leave that gap in place while the City runs a structural deficit. The proposed measure would reduce the General Fund support needed for the Police Department, while also providing the dedicated $1 million annual pension payment.

Palos Verdes Estates is known for its primarily residential character and its small, boutique commercial areas rather than large-scale retail or commercial development. As a result, revenue sources that many cities rely on, such as sales tax, transient occupancy (hotel) tax, and business license taxes, generate comparatively little revenue in Palos Verdes Estates.

Because the City's tax base is primarily residential, those revenue sources cannot generate funding at the level needed to replace Measure E.

Each parcel would pay an additional $683 per year compared with the current Measure E, regardless of home size.

This is because the tax is calculated as a base amount per parcel plus an amount per square foot of building improvements; it is not based on property value. The base amount would change from $342 to $1,025 per parcel (+$683 per year), while the improvement amount stays at 20¢ per square foot, the same rate as Measure E today. Since the per-square-foot rate does not change, the increase is the same $683 for every property.

For a median-sized Palos Verdes Estates home of approximately 2,745 square feet, the total works out to:

• Per year: approximately $1,574, compared with $891 under current Measure E, a difference of $683
• Per month: approximately $131, compared with about $74, a difference of about $57

Actual amounts vary based on parcel characteristics and building square footage. The current Measure E rate remains in effect through June 30, 2027; the new rate begins July 1, 2027.

No. The measure extends Measure E, which would otherwise expire June 30, 2027. Property owners would never pay both taxes. The current Measure E rate applies through Fiscal Year 2026–27, and if passed, the new rate begins July 1, 2027.

Revenue is legally restricted to two purposes: (1) Palos Verdes Estates Police Department services, including training, technology and safety equipment, maintaining 911 emergency response times, and operating and maintaining existing law enforcement facilities; and (2) beginning in Fiscal Year 2027–28, $1 million each year to reduce the City's unfunded pension liability, through additional discretionary payments to CalPERS, a pension pre-funding trust, or another financing vehicle recommended by the Finance Advisory Committee and approved by the City Council. Funds are deposited into a separate, dedicated account and cannot be used for any other purpose.

The City currently pays approximately $2 million annually toward retirement-related obligations, and those costs are projected to increase under current schedules. Making additional payments beyond the required minimum can reduce long-term interest costs, lower future annual pension payments, and free up future funding for City services. In the community survey, approximately 60% of respondents said reducing long-term retirement-related liabilities was very or somewhat important. The measure dedicates $1 million each year to reducing the unfunded liability, consistent with the City's adopted Pension Funding Policy.

The City's pension obligations are administered through CalPERS, the statewide retirement system that serves the vast majority of California cities and public agencies. The City does not control how CalPERS invests its funds or the investment returns it earns; when CalPERS returns fall short of its targets, the unfunded liability of every member agency in California, including Palos Verdes Estates, grows. Paying down the liability faster, when the City is able to, protects against future increases outside the City's control.

Leaving CalPERS is not a solution. Under state law, an agency that exits CalPERS must pay a termination liability calculated on far more conservative assumptions than the ongoing plan, so the cost of leaving is substantially higher than the liability the City carries today. Leaving CalPERS does not remove the debt; it increases it. The measure's $1 million annual payment is intended to reduce the existing liability responsibly rather than shift or defer it.

Funds may not be used to acquire or lease real property, or to construct new law enforcement capital facilities or major facility expansion projects. Maintenance, operation, and improvement of existing facilities is permitted.

The measure includes a 2% annual adjustment beginning in Fiscal Year 2028–29. Measure E included no adjustment, which is one reason its purchasing power declined as inflation rose more than 30% since 2018. For comparison, the June 2026 cost-of-living adjustment was 3.6%. In the community survey, approximately 63% of respondents supported some form of annual adjustment. The proposed 2% adjustment is intended to prevent the same erosion of purchasing power in the future.

The City has implemented cost-saving measures over many years, including eliminating three sworn police officer positions and four full-time non-sworn Police Department positions since 2018, reducing contractual expenditures, deferring maintenance and capital projects, pursuing grants, and using one-time funds. Despite these actions, the FY 2026–27 adopted budget still includes a structural deficit of approximately $1.5 million. Cost controls remain important, but they have not eliminated the long-term funding challenge.

• 1 sergeant overseeing professional standards including training
• 1 K9 officer
• 1 police officer
• 2 Service Officers
• 1 full-time Parking Enforcement Officer 
• 1 Executive Assistant to the Chief / Custodian of Records

Under California law, property taxes are distributed among multiple agencies (schools, Los Angeles County, and special districts) according to allocation formulas largely fixed since the late 1970s. Palos Verdes Estates receives approximately 11 cents of each property tax dollar its homeowners pay; the City cannot change that allocation. Voter-approved parcel taxes like Measure E are different: 100% of that revenue stays in Palos Verdes Estates.

The City's Reserve is its financial safety net for emergencies, disasters, and unexpected costs. Reserves are finite, one-time funds, and using them to cover ongoing deficits would erode the City's safety net over time. In order to maintain the high-quality services that residents expect from Palos Verdes Estates, the City has already used reserves for two consecutive years to balance the budget.

• A separate, dedicated account for all revenue
• An annual public report to the City Council on funds collected and spent
• Independent financial audits, reviewed by the City Council at a publicly noticed meeting
• Review and audit of expenditures by the City's Finance Advisory Committee, including review of the tax's impact on the City's overall pension liability
• A six-year sunset. The tax ends June 30, 2033.

No. As a voter-approved special tax, 100% of the revenue stays in Palos Verdes Estates, deposited in a separate, dedicated City account that may be used only for the purposes stated in the measure. The funds cannot be taken by Sacramento or redirected to other agencies.

Measure PF was a citizen-sponsored initiative that did not pass at the June 2, 2026 election. The measure now before voters was developed and placed on the ballot by the City Council following a community engagement process that included a resident survey (580 responses and 329 written comments), community meetings, and conversations. The Council used that input to set the funding level, restrict how funds may be spent, prohibit spending on new buildings, include independent audits and citizen oversight, and include a six-year sunset.

Measure E expires June 30, 2027 regardless of the outcome. If the new measure does not pass, the City would lose approximately $5.1 million in annual revenue beginning in Fiscal Year 2027–28. This represents approximately 20% of total General Fund revenues, and an amount equal to nearly 60% of the Police Department's annual budget. That loss would substantially widen the City's structural deficit and significantly reduce the City's capacity to maintain current service levels without alternative funding. The City Council would need to consider service reductions, further use of reserves, or other options.

The measure will appear on the Tuesday, November 3, 2026 General Election ballot, consolidated with the statewide general election and administered by the Los Angeles County Registrar-Recorder/County Clerk. Registered voters will receive a vote-by-mail ballot and may return it by mail or at official drop boxes, or vote in person at any County vote center, following the times and procedures established by the County. Election information is available at lavote.gov.