Community Needs
Followup Survey and
Consideration of Two
Ballot Measures
July 21, 2026
For consideration:
1. Receive/file the results of the Community Needs Followup Survey (June 2026).
2. Consider placing 1-2 measures on the November 3, 2026 General Municipal Election ballot for voter consideration. The measures propose to raise the Transient Occupancy and Golf Taxes.
Recommended Council Action
March 2025 - Established Fiscal Sustainability as a Council Goal • Engaged in an intensive process to evaluate the City’s fiscal condition and initiatives to address it.
This effort was guided by the City Council, Fiscal Sustainability Subcommittee (Bradley/Lewis), Finance Advisory Committee, 5 public budget meetings, and many open discussions with residents • City ultimately implemented a balanced approach in all financial areas – revenue, expenditures, and grants
Results – Identified $11.3M in available fund balances between FY 25-26 and FY 26-27. • Restored previously suspended revenues
• Strategically reduced operating and capital expenditures • Aggressively pursued grant funding
Background:
Fiscal Sustainability Efforts
• Although the City identified additional funds, it did not eliminate its ongoing structural challenges.
• The FY 2026-27 budget process spotlighted major financial stressors that continue to place an increasing burden on the City’s operating budget.
Background:
Ongoing Funding Needs
Anticipated $72.1M
in landslide
expenditures
from 10/2022 thru
the end of FY26-27
$86.4M in capital
projects potentially
unfunded over the
next 5 years.
Ongoing costs to
maintain aging
infrastructure,
parks/trails, public
safety, and other
services
Background: Community Needs
Survey (Feb. 2026)
Top City Priorities
• Street maintenance
• Wildfire preparedness and mitigation
• Landslide mitigation
• Public safety
Hypothetical Ballot Measures
• Increase the Transient Occupancy Tax (TOT)
from 10% to 13%
• Increase Golf Tax from 10% to up to 15%
• In June 2026, the City’s consultant, FM3, conducted a Followup Survey to determine if there were any significant changes in public opinion since the first Survey.
• Results: Continued, strong support for the same City priorities and both hypothetical TOT and Golf Tax measures.
• FM3’s Maya Gutierrez will present the Followup Survey in detail tonight.
Followup Survey (June 2026)
• Given the ongoing support for the two
measures, staff recommend placing both
measures on the November ballot for
voter approval.
Proposed Ballot Measures
TOT Measure
Rancho Palos Verdes Public Safety/City Services
Measure: To help prepare for and respond to
wildfires/natural disasters; maintain roads/storm
drains; prevent sinkholes; address landslides/land
movement; and support general city services, shall
the transient occupancy tax (paid only by hotel/motel
guests) be adjusted from 10% to 13%, providing
approximately $2,200,000 annually until ended by
voters, requiring audits, spending disclosures, all
funds benefiting Rancho Palos Verdes which cannot
be taken by the State or Los Angeles County, be
adopted?
YES
NO
TOT Measure
• TOT applies to hotel/motel stays of 30 days or less and is paid by guests. • TOT is the City’s 2nd largest General Fund revenue source, with ~$6.9M projected this fiscal year. All TOT revenue is locally controlled and dedicated to RPV. • City’s TOT has been 10% since 1973 and is one of the lowest TOT rates among comparable communities, whose rates range upwards to 15%. • Increasing the TOT to 13% would help RPV hotels/motels maintain a competitive edge, while providing additional revenue for essential city services. • The surveys indicated public support for this measure.
Golf Tax Measure
Rancho Palos Verdes City Services/Golf Tax
Measure: To help prevent property crimes, home
break-ins, vehicle thefts; keep public areas,
parks/children’s play areas, safe/clean; support
general city services; shall the City golf tax paid by
private golf course users be adjusted from 10% to
up to 15%, providing approximately $400,000
annually until ended by voters; requiring audits,
spending disclosures, all funds benefiting Rancho
Palos Verdes which cannot be taken by the State or
Los Angeles County, be adopted?
YES
NO
Golf Tax Measure
• City’s Golf Tax has been 10% since 1993 and is a modest, but stable revenue source. • Applies to fees at private golf courses and is estimated to generate $770,000 in FY 2026-27.
• The measure proposes to increase the Golf Tax from 10% to up to 15%, if approved by voters.
• All revenue would be locally controlled and subject to annual audits and spending disclosures.
• Placing two measures on the November 3, 2026 ballot is ~$42,000.
Sufficient funds are available in the budget.
• Estimated additional revenue generated, if approved:
o TOT Measure: ~$2.2M annually
o Golf Tax Measure: Up to ~$400,000 annually
• All revenue will be locally controlled and subject to accountability measures.
Fiscal Impact
1. Receive/file the Community Needs Followup Survey Results
2. Adopt Reso. - Call for the placement of a TOT Measure to increase the rate from 10% to 13% on the November 3, 2026 Ballot for voter consideration.
3. Adopt Reso. - Authorize the drafting of direct arguments, setting priorities for filing written arguments, and directing the City Attorney to prepare an impartial analysis for the TOT Measure.
4. Adopt Reso. - Call for the placement of a Golf Tax Measure to increase the rate from 10% to up to 15% on the November 3, 2026 Ballot for voter consideration.
5. Adopt Reso. - Authorize the drafting of direct arguments, setting priorities for filing written arguments and directing the City Attorney to prepare an impartial analysis for the Golf Tax Measure.
Recommended Council Actions