Neighboring City Expense Comparison

The chart below, provided by a local critic, asks whether Palos Verdes Estates has a “spending problem” by comparing spending per household among neighboring Peninsula cities.

However, the comparison does not reflect important differences in how these cities are funded and what costs are included.

Specifically:

• The neighboring cities shown (Rancho Palos Verdes, Rolling Hills Estates, and Rolling Hills) receive LA County Fire and Paramedic services without paying those costs directly through their city budgets. Those costs are therefore excluded from the comparison.
• Palos Verdes Estates pays directly for LA County Fire and Paramedic services, increasing reported City spending.
• Rolling Hills also funds a substantial portion of community services and expenses through its HOA, costs that are borne by residents but are not reflected in the City budget figures used in the original comparison.

The second chart adjusts for these differences by removing LA County Fire costs from Palos Verdes Estates and adding HOA-funded costs for Rolling Hills, providing a more comparable, apples-to-apples view of spending among Peninsula communities.

The adjusted comparison suggests that simplistic per-household spending comparisons may be misleading unless differences in service delivery models and funding structures are taken into account.