CITY COUNCIL MEETING DATE: 09/15/2026
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consider taking a position on Measure RS - the Rancho Palos Verdes Public Safety/City Services Measure.
RECOMMENDED COUNCIL ACTION:
1) Consider taking a position on Measure RS, the Rancho Palos Verdes Public Safety/City Services Measure, that has been placed on the November 3, 2026 General Municipal Election ballot for voter consideration; and, 2) If the City Council desires to take a support position on Measure RS, adopt Resolution No. 2026-__ , thereby memorializing its position publicly.
FISCAL IMPACT: There is no fiscal impact to consider the recommended actions.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Catherine Jun, Deputy City Manager CJ
REVIEWED BY: Same as below
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft Resolution No. 2026-__, supporting Measure RS (page A-1) B. July 21, 2026 City Council Staff Report (Linked)
BACKGROUND:
Fiscal Sustainability Efforts
On March 17, 2025, the City Council established Fiscal Sustainability as a City Council goal, due to the increasing financial pressures from the City’s landslide response while balancing the need to maintain aging infrastructure and essential City services. Since then, Staff has hosted five public City Council budget workshops/meetings and two Finance Advisory Committee (FAC) meetings to carefully evaluate the City’s fiscal condition; identify potential cost-containment and revenue enhancement options; and engage in comprehensive and transparent planning discussions in the public arena. 1 This intensive work has led the City to implement several initiatives to improve its financial position. These efforts included forming a Fiscal Sustainability Council Subcommittee (Councilmembers Bradley and Lewis) to consider and provide direction on potential initiatives; reinstating Consumer Price Index (CPI) adjustments for key revenue sources; reassessing capital project budgets; reducing operating expenditures; aggressively pursuing grant funding; restoring previously suspended revenues (e.g., reinstatement of the 1972 Act Landscaping and Lighting District assessments); and examining the impact of rate increases to certain assessments.
To date, these efforts have resulted in an estimated $11.3 million in available fund balances between the FY 2025-26 and FY 2026-27 Budgets, including approximately $600,000 in additional annual revenues, $5.2 million in secured grant funding, $3.7 million in reduced capital expenditures, and $1.8 million in reduced General Fund operating expenditures.
Ongoing Funding Needs
Although the City has identified additional funding, the FY 2026-27 budget process has spotlighted financial stressors that continue to place an increasing burden on the City’s operating budget. Ongoing landslide-related expenditures (beginning in October 2022) that are expected to reach approximately $75 million (updated from a previous figure of $72.1 million) by the end of FY 2026-27; maintaining aging street, sewer, and storm drain systems; keeping parks and trails in good condition; ensuring responsive public safety services; and other essential services all require continued local investments and a sustainable revenue source.
Staff also reported that continued reliance on General Fund transfers, Special Revenue Funds, and grant funding may not be sufficient to fully address the City’s long-term capital needs in a timely manner under its fiscally responsible pay-as-you-go approach. Based on the FY 2026-27 through FY 2030-31 Capital Improvement Program, approximately $86.4 million in capital projects remain potentially unfunded over the next five years.
DISCUSSION:
Measure RS:
On July 21, 2026, the City Council adopted Resolution No. 2026-61 to place the Rancho Palos Verdes Public Safety/City Services Measure, on the November 3, 2026 General Municipal Election ballot for voter consideration (Attachment B).
Since then, the Los Angeles County Registrar of Voters has assigned a letter designation to the measure, which is now titled “Measure RS”. The full text of Measure RS’ ballot question is as follows:
2 Measure RS:
If approved, Measure RS would increase the City’s Transient Occupancy Tax (TOT) from 10% to 13% and generate an additional estimated $2.2 million annually to assist with the City’s fiscal sustainability efforts. The TOT is paid only by hotel and motel guests and collected by the operator on behalf of the City. Because TOT is paid by hotel and lodging guests (likely being non-residents most of the time), it provides a way for visitors to contribute toward City services, infrastructure, and public safety resources that support the community and visitor-serving areas. All TOT revenue is locally controlled and used by the City for general City services that benefit the Rancho Palos Verdes community.
FAC, the Fiscal Sustainability City Council Subcommittee, the City Council, and Staff reviewed all revenue sources, including TOT and their rates in other cities. The City’s current 10% rate was identified as lower than many comparable coastal resort and visitorserving communities. Among 16 comparable jurisdictions, Rancho Palos Verdes is tied with Lomita for the lowest TOT rate. The ranges for these comparable cities were between 10% to 15%. Additionally, among the comparable destination communities, Rancho Palos Verdes is tied with Newport Beach for the lowest TOT rate. The ranges for these cities were also between 10% to 15%. As the second-largest General Fund revenue source after property taxes for the City, a potential TOT increase would generate more revenue for the City that is likely to be borne mainly by non-residents.
Current Status of Measure RS
Since the City Council unanimously voted to place Measure RS on the November 3, 2026 General Municipal Election ballot, the City has successfully completed a process to receive the following documents related to the measure and within the allowable time frame established by the Los Angeles County Registrar of Voters:
✓ An impartial analysis of Measure RS from the City Attorney ✓ One argument in favor of Measure RS from:
• Stacey Girard, Vice President, Operations and Events of the Palos Verdes Peninsula Chamber of Commerce
3 • Stephanie Cartozian, Communications Director of Wayfarers Chapel • Gail Y. Lorenzon, Director of RPV Neighborhood Watch
• Claudia A. Krikorian, Head of School for PVP Montessori School • Gregory C. O’Brien, Retired Judge
✓ No argument in opposition of Measure RS, and therefore, no rebuttals is necessary.
Furthermore, the City’s consultant, FM3, conducted two dual-mode (telephone and online) Community Needs Surveys (Surveys) in February and June 2026 of likely voters in Rancho Palos Verdes. In addition to surveying residents about the top City issues or concerns that should be prioritized for funding, the surveys tested a hypothetical ballot measure to increase the TOT from 10% to 13%. After providing respondents with additional information on the TOT measure, a strong majority of respondents ranging from 65% to 75% across the two surveys indicated support.
Consider Position on Measure RS
Based on the above, Staff recommend the City Council consider taking a support position on Measure RS and publicly memorialize it via the attached resolution (Attachment A). It should be noted that under California law, a City Council may formally adopt a position on a measure, so long as that position is taken at an open meeting where all voices have an opportunity to be heard.
ADDITIONAL INFORMATION:
Educational Campaign
The City may not use public funds, staffing, facilities, equipment, or other resources to advocate for any position on a ballot measure. Furthermore, all City communications regarding Measure RS will continue to be an accurate and impartial presentation of its purpose, impact on the City and its operations, and other applicable facts. The City intends to begin providing such educational information to the community between September and November 2026 to ensure voters are sufficiently informed before voting.
However, public employees and elected officials may – on their own time and with their own resources – engage in related campaigns, make campaign contributions, send and receive related messages using personal accounts and devices, and personally take a position on the measure.
CONCLUSION:
Staff recommend the City Council consider a support position on Measure RS by adopting the attached resolution (Attachment A) to memorialize that position publicly. 4 ALTERNATIVES:
The following alternative actions are available for the City Council’s consideration:
1. Do not take a position on Measure RS.
2. Request additional information on Measure RS prior to taking a position at a future meeting.
3. Take other action, as deemed appropriate.
5 RESOLUTION NO. 2026-______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES, EXPRESSING SUPPORT FOR
MEASURE RS, THE RANCHO PALOS VERDES PUBLIC
SAFETY/CITY SERVICES MEASURE, THAT HAS BEEN
PLACED ON THE BALLOT FOR THE GENERAL MUNICIPAL
ELECTION TO BE HELD ON NOVEMBER 3, 2026
WHEREAS, the City is anticipated to spend over $75,000,000 in taxpayer dollars from October 2022 through June 2027 to address its recent landslide within the Greater Portuguese Bend Landslide Complex, and the continued risk of natural disasters means that the City needs to be prepared for earthquakes, land movements, and wildfire in the future; and
WHEREAS, last year, there were more than 300 reported crimes involving burglary, theft, and similar offenses, including 71 residential burglaries in the City; and WHEREAS, the City must maintain 911 emergency response times and public safety patrols to keep residents, local businesses, and their property safe; and WHEREAS, the City seeks to implement locally controlled revenue approaches in the least burdensome way possible to residents and property owners while preserving competitive advantages for its business community; and
WHEREAS, a General Municipal Election on November 3, 2026 has been called by the City pursuant to Resolution No. 2026-45 adopted by the City Council on June 16, 2026; and
WHEREAS, on July 21, 2026, the City Council adopted Resolution No. 2026-61 to place Measure RS, also known as the Rancho Palos Verdes Public Safety/City Services Measure, on the November 3, 2026 General Municipal Election ballot for voter consideration; and
WHEREAS, Measure RS proposes to increase the Transient Occupancy Tax from 10% to 13%, generating approximately $2.2 million of additional general funds annually to help support general city services that benefit the Rancho Palos Verdes community, including but not limited to preparing for wildfires and natural disasters, reducing wildfire risk, preventing property crime, maintaining roads, and addressing landslides and land movement; and
WHEREAS, Measure RS is subject to public disclosure of all spending; strict accountability requirements; public transparency; independent annual financial and performance audits; and local control of all funds for the benefit of Rancho Palos Verdes residents while prohibiting the County or State from spending local funds generated by Measure RS.
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Resolution No. 2026-__
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:
Section 1. The foregoing recitals are true and correct and are hereby incorporated and made an operative part of this Resolution.
Section 2. The City Council fully supports Measure RS (official ballot question printed below) that will be on the November 3, 2026 General Municipal Election ballot for voter consideration.
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
Section 3. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. This Resolution shall be effective immediately upon passage and adoption.
A-2
Resolution No. 2026-__
PASSED, APPROVED AND ADOPTED by the City Council of the City of Rancho Palos Verdes this 15th day of September 2026.
BY:
Paul Seo, Mayor
APPROVED AS TO FORM:
Aleshire & Wynder, LLP
________________________________
William Wynder, City Attorney
CERTIFICATION
I, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Rancho Palos Verdes at a regular meeting held on the 15th day of September 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Teresa Takaoka, City Clerk
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