Economic Analysis of a Proposed City Incorporation Palos Verdes Peninsula •
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TABLE OF CONTENTS
iNTRODUCTIoN
Page
Background 1
r
Proposed Incorporation
Purpose and Methodology of the Study 2
Lr
rY
i ! S UMR OF FINDINGS
Expenditures 3
Revenues 7
Projected Budgetary Requirements Q
1 III
..d
L '
III CONCLUSIONS
Costs and Benefits of Incorporation 12
Necessity of an Ad Valorem Tax
12
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INTRODUCTION
IllI i
Background •
The proposed incorporation considered in this report. is the most current
of several jroposals to incorporate port:ions of the Palos Verdes Penin-
sula. In order to prevent confusion, the nature of each of the past
proposals should be understood.
Rancho Palos Verdes: As shown on Map A, this proposal included
the entire unincorporated portion of the Palos Verdes Peninsula
with the exception of two county "islands" adjacent to the City
of Rolling Hills and Rolling Hills Estates.
Y
This application was processed by the Local Agency Formation
Commission (LAFCO) in 1970 and approved. However, a majority
protest by landowners terminated further proceedings before the
Board of Supervisors. This incorporation application is now
referred to as the "Fourth City".
.- San Pedro Hills: As shown on Map B, San Pedro Hills consists of
the east side of the Peninsula. Financial feasibility studies -
were conducted and an application was filed with LAFCO in 1971 .
This application was denied and is now referred to as the
f
"Fifth City'".
'1 III
Rancho Palos Verdes: Another attempt was made to incorporate
Rancho Palos Verdes as shown on Map Cg omitting the area pro-
posed as San Pedro Hills. This application was processed con-
currently
on-
currently with the San Pedro Hills proposal in 1971 and was
�� denied by LAFCO and was known as the "Sixth City" proposal .
d
j
3-12.9-4-f=9-S1-11
corporat
Proponents of the Fourth City proposal filed suit in 1971 , with the
State Supreme Court subsequently finding that language in the incor-
poration statutes providing for abandonment of proceedings at the
written request of owners of a majority of the assessed land valuation
to be unconstitutional . The Court ordered the Los Angeles County
Board of Supervisors to resume the incorporation proceedings. In the
meantime, three annexations have been approved by LAFCO, two of which
have been completed. In addition, it is our understanding that Fourth
City proponents have requested the Board of Supervisors to exclude from
{ the incorporation, not only the three annexation proposals, but all of
the territory easterly of the boundary of the Palos Verdes Peninsula
4 Unified School District (within Los Angeles City Unified School District) .
Therefore, the incorporation proposal now under consideration is shown
on Map D.
This area contains an estimated population of 35,200 and ;800 dwelling
units as of January 1972. The number of registered voters is 19,551 as
Illof September 1972, there are 25.22 miles of master plan highways and
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411
81 .83 miles of residential streets. The area consists of 12. 188 square
miles and is primarily zoned and u sed. E o r single-family homes. Large
areas along the coast are zoned for commercial use. The topography is
.� rolling hills terminating on the west and south in a sea cliff which
ranges from- 50 to 300 feet in elevation. The highest elevation, San
Pedro Hill , stands 1480 feet above sea level ,
2.141pose .and Methodology of the Study
This study consists of an analysis of the fiscal position of the
proposed city• Using existing 1972-73 data and updated information
from previous studies, Wilsey and Ham developed a hypothetical 1972-73
analysis of expenditures and revenues for the city, as if it had been
incorporated at the beginning of fiscal year 1972-73.
This simulated budget was developed in order to be able to use the
actual revenues and expenditures for the area as a basis for projecting
future revenues and expenditures.
In addition, the method of this report includes a comparison •of incor-
porating
ncor-
porating the proposed city to the alternative of incorporating both the
Palos Verdes and Los Angeles School District portions of the un i ncor-
. po ra t ed area.
1
111
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SUMMARY OF FINDINGS
•
Ill
rxx �endttures
An analysis of hypothetical expenditures of the city as if it were
incorporated in fiscal year 1972-73 is shown on Table 1 . Figures are
meant to be shown as minimum amounts for such items as staff costs,
health regulation, rent of a city hall and contingency reserve funds.
In addition, additional expenditures are analysed for the alternative
of including the Los Angeles Unified School District area in the pro-
.% posa l . It is assumed that an additional ten percent in certain total
expenditures is needed to accommodate the level of services required by
the additional territory. This assumption is based upon total area,
population, miles of master planned highways and level of development
activity.
Administrative a______an_c_i_laclrational Personnel Costs
The analysis of staff requirements is based upon minimum expen-
ditures for personnel services. When the city staff expenditures
in Table 1 are compared to other cities of similar size and popu•- •
l a t i on, it is apparent that these expenditures, proposed by pro-
ponents and which are comparable to those proposed in prior
incorporation attempts, are inadequate. Therefore an additional
$90,000 is proposed for staff and administrative purposes in the
proposed city, with a similar adjustment of $100,000 if the Los
Angeles School District area were included in the proposal . A
• total of $29!x,102 is allocated for personnel services in the
proposed city, with $326,781 allocated for the total area
(including the Los Angeles School District) .
• Government Services
Law Enforcement: The Sheriff 's Department has proposed that the
city should. have round-the-clock coverage by three law enforcement
units, seven days a week. These units will spend approximately 50%
of their time for general law enforcement and 50% for traffic law
_7 enforcement. In addition, a fourth unit is recommended for traffic
law enforcement on the evening watch (4pm - 12am) , and two detectives
full time, are recommended. In the case that the Los Angeles
School District area is included in the proposal , the consultant
recommends- that this level of service be increased by 10%.
Street Maintenance: Services are proposed by the County Road
Department, amounting to $279,660 in the proposed city area, with an
additional 10% allocated for the Los Angeles School District area.
Street Construction: Projects proposed for fiscal year 1972-73 by
the County Road Department amount to $114,800. No construction
projects are slated for the Los Angeles School District area in
1972--73.
-3-
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Parks and Recreation: The area -contains Palos Verdes County Park
and the undeveloped sites for Friendship and Shoreline Parks. As
the two latter projects are regional parks, financial responsibility
for planning, development and maintenance of the two sites would
remain with the County. Palos Verdes Park, considered a local .
park, would be an obligation of the new city and would require
$53,000 for maintenance and operation.
After School Recreation Program: The cash equivalent of County
staffing to conduct after school recreation programs is $19,751
for fiscal year 1972-73. This program would become the responsi-
bility
esponsi--
bility of the city upon incorporation.
The subtotal for yearly operations, personnel and services is $1 ,624,395
• for the proposed city, as compared to a total of $1 ,754,053 if the Los
Angeles School District area were included. Added to this figure i s a
contingency reserve fund of 5% (the League of California recommends a
contingency reserve fund of 5%, -- 10% for emergency/disaster situations
and other unforeseen expenditures) and a minimum rental of a city hall
for $500 per month. This brings the total yearly expenses to $1 ,71 1 ,615
for the proposed city and $1 ,847,735 for the total area.
In addition, during the first year of operation, the city may be ex-
IIIpected to incur a minimum expenditure of $22,500 ($25,000 for total area)
in furniture and equipment for government operations. If the City had
been incorporated in 1972-73, the total expenditure would have been
$1 ,634,115, with $1 ,872,735 for the total area.
.
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WILSEY AND HAM ANALYSIS OF EXPENDITURES Fiscal Year 1972)13
.:i
Additional Expenditures Total
Palos Verdes School For Los Angeles Unified Comparable
District Area School District Area To 4th City
4 —8-- - . -',n- , :,...,-...,,,,,--94, , .•, - -- -,----...,, :,...,,,,t,-.-p,.. ---..0- *47 ,.......4.1=,,,‘... .....:— -"nr,....44....M...........'" 7.. r",.=,..77=:=7.77,==a
Legislative functions $5,450. If this area was to be $6,056. (1)
City manager 40,725. incorporated into the 45,250. 0)
City clerk 24, 107. proposal ,add 10% 26,786. ( )
Director of finance/treasurer 10,681 . additional expenVitures 11 ,868. (1 )
City attorney 10,915.
to that for the Palos 12, 128. (1 )
Planning and zoning 50, 14..0. Verdes school district 55,711 . cl?
Non-departmental 62,084. area in all categories 68 82 0)
5 ,,0 •
Staff and administrative adjustment 90,000. except those specified 100,000. 0)
below. (2)
Subtotal $294, 102. . $326,781 .
•
General law enforcement $457,424. (3,5) ..;50316.
Traffic enforcement 320,037. (3,5) ,
352,041 .
Detective services 72,468. (3,5) 79, 15. .
Engineering services 7,088. 7,875. ( 1 )
Street maintenance 279,660. 0) 307,963.
Health regulation 190. • 210.
,.
After school recreation program 19,751 . (3) -0- 19,751 .
Palos Verdes county park 53,000. (3) -0- 53,000.
Street construction 114,8000 (3) -0- 114,800.
General public health and safety 5,875. 6,527.(6)
Subtotal $1 ,624,395. $129,658. $1 ,754,053.
------7--------=.-- • ,......—......--4, • ..:.•,.•,.,,,,„....„..„....„- ,........, •..- • - , •.
Contingency Reserve (5% minimum) 81 ,220. 16.14. 87,702.
Rent ($500 per month minimum) •
6,000. 6,000. 6,000.
Total (yearly expenditures) 1 ,711 ,615. 149,272. 1 ,847,735.
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Initial capital outlay 22,500. 15,000. 25,000.
(furniture, equipment minimum expenditure) (4)
Total (yearly plus initial expenditures) 1 ,734, 115. 164,272. 1 ,872,735.
(See footnotes following page) ,
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FOOTNOTES:
(1 ) Source: Wilsey and Ham, Analysis of Revenues and Expenditure Proposed 4th Com, July 1971
5% added to original figures for inflation. Figures include materials, supplies., travel
expenses, and support staff, but not initial capital outlay.
•
(2) This factor was developed by considering the ratio of population, land area, master plan
highways and development activity. The Los Angeles School District area constitutes 16%
of the population, 16% of the master plan highways, 13% of the land area and a minor
portion of developable area within the unincorporated portion of the Palos Verdes Peninsula.
(3) Source: Los Angeles County Administrative Off i ce,A Factual Re ort on the Pa los Verdes
Peninsula , November 1972.
(4) Source: Wilsey and Ham, A Study of the Proposed i ncor orat ion of San Pedro H i l 1 s,
May 1971 . 5% added for inflation.
(5) Police protection expenditures increase from fiscal year 1971-72 reflect the following
increase in contract price.
ON
1971-72 1972-73 % Increase
Contract Price per Detective Year $35,000 $36,234 3.5%
Contract Price per Law Traffic Car Year 254,000 269,073 5.9%
-(6) Includes school crossing guards.
.
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411
A
Revenues
the fol lowinci Table 2 depicts the currently available resources which
would accrue to the proposed city, the Los Angeles School District area
only, and the total unincorporated area. Other resources available to
the city would include revenue sharing funds and any taxes which the
City Council institutes.
Revenue sharing is based upon a formula which combines the population
with the general tax effort factor (the relative municipal tax burden
of the city)
and a factor for relative income of the city. The proposed
City does not stand to receive a large sum of revenue sharing Funds
for two reasons: as a "contract city" the taxes paid to special districts
are not included in the general tax effort factor. In addition, the
median income level is unusually high within the proposed city limits.
Both of these facts indicate that the proposed city's share would be
minimal .
An admissions tax was proposed during past incorporation attempts.
Ma r i ne l and of the Pacific was the object of the proposed tax. Whether
or not such a tax would be imposed, and at what level , is a policy
decision to be made by the City Council after incorporation.
411 Since an admissions tax is not being proposed by proponents of the
incorporation since its imposition by a future City Council is unsure,
and since revenue sharing funds are thought to be minimal , it is assumed
in this report that any deficit in existing sources of revenue would be
offset by a municipal ad valorem tax.
411
A
410. TABLE4I0 411 , •
'.`0, W 1 LS EY AND HAM ANALYSIS OF PROPOSED REVENUES Fiscal Year 72/73 '.
,f
s Palos Verdes School Los Angeles Unified
District Area School District Area Total
yf - , - • --,--,----p—,---4wiir' •+rA'f,''�17,.:,..N4i.Sstr`W.,:"'.u.•7:+'411e?},,r?'�`dri!IM. '.7ifSr. - . .AM,_ 1i 1....V.,,4',,I.t:*`!''r4.! _ � wirio..wiiiG � ^ ----"•� +'i�di
t4af•+'.kvAt'sitrAdL�:+_liwnlLi tti:l►,.,ie_!{,.x.:r.�i�+: °�!"•.:,:L:�' �''a+++G�iY-.�O:Is:M�:.w.
r
Sales/use tax $70,947. $74,659. (3) • $145,606.
(lb,
Franchise tax 66,193. 12,609. 78,807.
)
z Room t'x 2,300. (2) 1 ,500. '. 3,800.
• Real property transfer tax 18,000. 2,000. (1c)20
,
Business licenses 900. (2) 1 , 100.00. 2. 000.
Fines and forfeitures 73,701 . 14,740. 88,441 .
Liquor license fees • 2 6b8. (2) (3') 8`
� 1 ,670. ,3 3
Motor vehicle in lieu tax 450,445. k2)(2) 88s 520. (3) 538,965. ,
s
c)
Planning and zoning fees 18,000. � 2,000. 0\ 20,000.
Cigarette taxi i 7, 1 17. c27,872. 144,983.
Engineering neer i n allotment - 2107.5 7,500. (2) 3 000. (3) 10,500.
• Collier-Unruh gas tax - 2106 275,777. (2) 58,050. ( ' 333,82,' .
oun astaxJaid - 2106 87 884. (2) 16 401 . 99,285,
2`5,
C ty. g � � 9.,, _
T Stategas tax - 2107252,794. (2) 49,677. 0) 302,471 .
w =.�-r►su.rr� • ._ "M"_. .w •.�.�.v«.w V...... ..w�..,7...w�.. 7:7!•.::: a. .wx�+�.w.f�r�.*
• .T.L:r..++Yi.�' .rit...A.ie'a .��,' d,,;' 5,;;;,K; a ']IL"� �'! Y,+i�.rwo►uk::l:. .dG.,.Yr..s�..ea:ti.. t "w N WI°!YW tiwi:.i:...aw.a re..i+a,.' ,......-,. .. .ii,,,oa .s:►.w • :J:: r,aaoa.a .Yr aiYiy.4-«+.w J d.s_M.:..�rasacac:,l:aiK i:.aru[tr`E
•
Total
$1 ,444,231 . $353,798. $1 ,793,029.
( 1 .) Source:W i l sey and Ham Economic Analysis of Proposed Fourth City, July 1971
(a.) Split between two areas estimated based on length of major arterials .
(b.) Split between two areas estimated based on per capita allocation
(c.) Split between two areas estimated based on ratio of undeveloped land
(2.) Source: Los Angeles County Administrative Office, Factual Reaort on the Palos Verdes Area, Nov. 1972
(3.) Sou rce: State Board of Equalization
t.
410
Pro-ec_ted budPe_ta rY__Re pire''._:'nL`
Using the expend i t u i e and revenues generated ftCo r thebase y(-ear 1972-73,
it i5 possible to project the financial status of the proposed city in
the future.
The second key tool in projecting the financial status of the city is
indicated on Table 3, Read Improvements fo n Deficient Streets. Thi s
table shows all road projects proposed to fiscal year 1975-76 plus
those road projects proposed for the long term and other deficiencies
identified. In projecting expenditures for the future, proposed road
projects have been included Y!ith other expenditures s>hc)wn on Table 1 .
Table 4 indicates the amounts of expenditures and revenues expected, the
surplus or deficit, the asses :ed valuation which is projected anc the
total tax rate. The total tax rate is the average for all tax code
areas within the proposed incorporation in 1972-73 with the required
municipal tax rate added., The only tax rote deletedrom this average
is that for Special Road District No.4, which would discontinue services
to the area upon incorporation.
This same information is shown for the alternative of incorporating the
total unincorporated area. The municipal tax rate is lower because there 110
are no major road projects scheduled for the Los Angeles School District
area. Therefore, on balance, they contribute to the city's revenue.
The average total tax rate is I o;1er becausethe Los Angeles School
Di s-
tr i c t area has a considerably lower tax rate in 1972•-73 (average $11 .5625)
for the Palos Verdes area, the average tax rate is S13.2481 .
The average tax rate for both alternatives are also indicated on Table 1f.
With a capital improvements program, the municipal tax rate could be
averaged to accommodate the various road projects. It: should be noted
that the only road projects included i n the projected budgets are those
scheduled through fiscal year 1975-76. Other projects nd i ca ted on
Table 3, including the Palos Verdes East Improvement costing $10,000,000,
would i nv l ove policy decisions on the part of the future City Council ,
and therefore are not included in projected budgets.
41!
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t • i i d i I i L i L i lL J I A & A L i 1 i L i L A I i t. 1 M
TABLE 3
ROAD IMPROVEMENTS FOR DEFICIENT STREETS1
y
t
g rr
; k; R,,, ,1. /� t
fir . ! �" Deficiencies• • �+ �1
h 1 1
. U_ C .,e =c�cncfe, �,.ent �
Fiscal ca l Year 1974-75 Fiscal s ca l Year 19 5-76 LongTerm ,� Projects'-� 2
11 . b 7 �, f�ed, No � rc,��_\..t.� Proposed
'':,1
; mss.
:,1 ;.
Palos Verdes Dr. South �, Crest Road Palos Verdes Dr. South
r i
' ou r. H i ghl i dge Road
�; From West of Schooner From Hawthorne' to City4 From West of Schooner :•, From '�1J
r Hawthorne tC,
:: to Palos Verdes Dr, East of Rolling Hills* to 25th Street (L. A Whitcstone
il
Interir� Improve��ients ,` From Rolling Hills to City borders) Cost; $i2 000
Cos ; $657,000 Ganado j Final Pr fect Deifcit• 1978t
•, Status: Proposed for Requires R.O.W. Accuisition . Cost : $6LT0 000 + R.O.W.
,`.: Construction Cost .
____ • $6iL ,000 .� costs Silver Spur
ill
.. Status, Design completes, .j Status: Planned but no From Basswood to Waupaca*
�'�� los Verdes Dr. West` no R.O.W. acquisi-s i- k date of constr•uc- t'� Cost•t3,000
.,,s From Palos Verdes aM tion, no specific tion set il.,1 Deficit: 1973
i:
Estates to Palos Verdes ji construct ion pro- 11
t) Dr. South , posed as of yet ' Palos Verdes Dr N Silver r
East ., -r ,
P S t' '' rf� ,
S ve Spur
�z . $500,000 ,,~
From Palos Verdes Dr. From Waupaca to Rolling
Status: Design Proceeding `- to .
g 9 k South Palos Verdes 1,�� H i l 1 s Este Les-
ti's 1,,i r�;;J Dr. North :: Interim i mp ovem nt s
4 !.3 � Cost: . $2,0o0
'��;� $10,000,000Cost :
0 E l (minimum) p Deficit: 1968
ti Pi
0 Status: Project in limbo }
6 alignment and t.4 1 lver Spur
k • • . n
k i 0 IA ,a R•0„Y�;',. a c q u i s I t 1 o►+'11 'w From t'J u r1 r ! t„ Rol
Es �&Lcs
1,: problems
�� H i , 1 S r s
..y +�/I�)jy��y Final improvements
o f Silver Spur Cost• 810,000
From Wi l iowwood to F Deficit : 1978
,-.J r ,I
,,, Basswood' il
E:i
, Final Improvements i`=l
Montea
Malaga
• Cost: $236,000 i From Palos
alos V rdes Esta
te
som; 0 6 Status: ,
Plannedutno to Rolling HillsEstates
P date of construc-• Cost:
[I $34,000
k:
Pi
tion set 1 Deficit: 1978
0 r ,..,,,
ki r..0,
1
.,
0
11
0
$1 , 157,000 k $614,000 r, $10,876,000 $61 ,000
iii Li t,1
.:, plus R.O.W. costs
Li
?ct between two jurisdictions
;e7 rtmert, Progr m Development Division, Project Coordination and r trol
, �,+ ,`o,;,+.+ e n cy R eoo r111
M
}
TABLE 4
. PROJECTED BUDGETARY REQUIREMENTS r.
1972--73 1973--74 1974.75 19M-76
'1.'x' ,.. ��r Y'r4.+: 's.L..,srvw.....►.3iJ:r.1 'A.IM...:eKl.�u�r+ w
. ,1AMt,J�r as'Ry1{v :.'ti..A4i;.ta...a .'YYwe.;' - 3i. ' •.`Id; .'C.L' .u!drr'v�+:.t..a:-ar::y'L«k:at` aaK4.t1'.li:a.:':Aix Li.L wuyaWaifat►.r�*. �'+.••tu-.:•. .taa 41Y.....:.:d..w..r.s.kal.w►it rrR.•.ir+`3as.,.a..1r !r:•..:::.u.•..r....Yl«ir.!..aD
1
Palos Verdes School District Area
Revenues $1 ,444,231 . $1 ,516,4142. (1 \ $1 ,592,264. $1 ,671 ,877.
1 ,734,115. 2,633 195. 3,04 . ,055. 2,595, 08.
Expend i tures � '� (2) Q �,�„ ��1
Def ici t/sur 1us - 289,884_ -1 ,1 16, 753. -1 ,451 ,7 .92 923,53 .
A, municipal Req. tax rate .2165 .7950 .9570 .5637
Total tax rate (3) 13.3944 13.9729 14. 1349 13.7416
Assessed valuation133,873,015• (Li.) 1L40,1461 ,9146. (5) 151 ,698,901 . (6) 163,834,813.
Average mun:c i pa l tax rate -$.7791
Average total tax rate $13.9570
r...=.7.....,==.-"i„.....„,... „,...,.--_,.t...,.., .., nnr•.... ,,,,, ., _ ,,-,,,..,.,1-,""=. .. .mow it:..K -rz---:�:`Iw. ....tmz s
4i�+llt ?iA'rl r :�kFR1VV. ai►.� :r..�i iii�C;w ih fL.iy ".:w ti`•esl.+�i6si ct.:iR,rGt.+ Lrn�"r'r i�...L. i:i�rifr'F F w:v.c a3.w, :w
,i Total Unincorporated Area
t Revenues $1 ,793,029. $1 ,882,680, $1 ,976,814. S2,075,655.
2,f76 121 . 3 i 94,42_7. 2,/52,:'��-�.
Expenditures 1 ,872,735. .,
' Deficit/surplus 105,358. 893,441 • -� 12 1 ,761 . -- 677,329• .
Req. municipal cpa l tax rate .0695 .5619 .7111 .3667
171 ,222,550. .
Total average tax rate 124046 12.8977 13.0462
12 .7013 2 .
E^
Assessed valuation 151 ,430,560. 159,002,008• �u14,9`:0-r64.
Average municipal tax rate $.5470 •
Average total tax rate (3) $12.8821
(J
(I . ) Source: Wilsey and Ham
1F
A 5% increase in revenue from i of lat i on,populat ion increase, and development activities
(2. ) Source: Wilsey and Ham
A 5/4 increase in expenditures from inflation, populat on increase and development activities ,less initial capital outlay, plus projected road construction (See Table 3)
Y (3• ) Assumes tax rates for special districts/agencies to remain constant at 72-73 rate to demonstrate
effect of municipal tax rate on total tax bill for average citizen
(4. ) Actually this is the assessed valuation for 71-72, which is used for the 1972-i3 tax bills
Prior year valuation is always used for present year taxes
L.A. CountyAdministrative Office, Factual Re ort on the Palos Verdes Peninsula Area, Nov. 1972.
(5. ) Source: � � �.. .. �...
(6. ) Assumed increase of 8% based upon trends
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•
CONCLUSION
Costs and Benefits of incorporation
It
can be seen that incorporation of the total area rather than that
portion n of the Peninsula proposed for incorporation is more feasible
standpoint. The additional area (the Los Angeles School
from a fiscal
District area) would strengthen the sales tax x base and increase assessed
valuation.
The level of services required for the Los Angeles School
District
area is lower than that required for the Palos Verdes School
District
• -' area These factors indicate that it would be to the financial
benefit
of the citY to include the Los Angeles School District area in
its incorporation proposal .
The level of road improvements scheduled for the Palos Verdes area is
v n c.r sty
tall high, but the necessity for those projects can, in part, be
traced to landslide and subsidence problems. However, the costs of
..
implementing
these road projects constitute a serious financial con-
straint
on--
st
ra i nt to the feasibility of incorporating the city. For instance, to
implement the $10,000,00Q improvement of Palos Verdes Drive East (see
Table 3) the crty would be put into a very difficult fiscal position.
Necessity of an Ad Valorem Tax
With only}j m n i nor amounts of revenue sharing funds available to the city,
theIII unsure and status of an admission tax, it seems that a municipal
ad valorem tax only i s the feasible resource for supplying needed funds
to the city,
• , .,: �� tax rate of $ 7791 (average for fiscal
The, average projected mur�►c r per. � School District
year 1 3 through h fiscal year 1975) for the Palos Verdes
97 9
area would mean a total average projected tax rate of $13.9570 per $100 total
assessed valuation, an increase of 5.2% over the existing average
tax rate of $l3.2481 . This tax rate is in the upper 15% of all rates in
the Los Angeles area. On the other hand, if the Los Angeles School
e i ncor orated into the proposal , an average municipal
District area wer p
tax rate of $.5+70 would mean an average projected total tax rate of
only a 3.8% increase over the existing average total tax rate
$12.8821 ,
4o f $12Ji053 per $100 assessed valuation.
In conclusion, the above increases in the tax rate would only supply
the city ty ti,sr' th revenues for a minimum initial capital outlay, yearly
personnel and services (assuming the majority of services to remain
under contract to the County special districts and private franchises)
and road construction costs. Any other capital improvements projects
that the city mrght wish to undertake, such as construction of a city
hall , or acquisition and development of park land would mean further
increases in the municipal ad valorem tax rate.
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