Future Property Tax Growth Could Help Rebuild Pacific Palisades

PACIFIC PALISADES, CA — City officials are considering a plan to direct future property tax revenue toward rebuilding Pacific Palisades.

The proposed Palisades Disaster Recovery District would create a dedicated source of funding for infrastructure improvements and other recovery projects following the Palisades Fire in January 2025.

Under the plan, a portion of the growth in property tax revenue as damaged properties are rebuilt and regain value would be redirected toward local recovery efforts rather than flowing into the city's general fund.

The district could help finance projects such as repairing streets, improving water infrastructure, undergrounding utilities and making the community more resilient to future disasters.

The proposal would not increase property tax rates. Instead, it would set aside a portion of future tax revenue that would otherwise support general government operations.

Councilwoman Traci Park, who represents Pacific Palisades, has been pushing for the district as a way to secure long-term funding for the community's recovery.

The City Council's Ad Hoc Committee for LA Recovery advanced the proposal Oct. 9, sending it to the Budget and Finance Committee for further consideration.

The next major step is expected at the Budget and Finance Committee's Nov. 17 meeting.

But time is running short. Under state legislation authorizing disaster recovery districts, the City Council must adopt a preliminary resolution of intention by Jan. 7, 2027 — the second anniversary of the Palisades Fire — to preserve its ability to establish the district.

That resolution would not actually create the district or commit the city to spending money. It would allow officials to continue working out the details, including how much revenue would be dedicated to recovery, which projects would qualify and who would oversee the funding.

The proposal has the backing of the Pacific Palisades Community Council, which sent a letter to city officials Oct. 26 urging them to move forward.

The council also called for Palisades residents to have a meaningful role in overseeing the district, along with financial safeguards and regular public reporting on how the money is spent.

Although supporters see the district as an opportunity to accelerate rebuilding, significant questions remain about its financial impact on the city's general fund and the amount of revenue it could ultimately generate.

The City Council would still have to approve the district through a separate process after adopting the preliminary resolution.

Malibu is also in the process of weighing whether to create its own recovery district in the area that was devastated by the Palisades Fire.

Residents can find more information about the proposal on the city's website.