Firm to Study Fire Assessment Cost : Palos Verdes Estates: Council’s hiring of a consultant is a step toward replacing two parcel taxes with an assessment district to fund city programs.

Palos Verdes Estates council members last week approved a $25,000 contract with San Diego-based BSI Consultants Inc., which will determine how much homeowners would have to pay for fire services if a special assessment district is formed.

The council’s move is aimed at eliminating two parcel taxes that residents now pay to help fund emergency services and parks and street improvements. Council members have expressed concern that should the taxes ever be voted down by residents, the city would find itself strapped for funds.

The two taxes, known as Propositions A and B, are staggered and voted on every four years. This fiscal year, the taxes are expected to generate $1.9 million in revenue, about one-quarter of the city’s budget.

Most of the $1.9 million goes to pay for fire services under a contract with Los Angeles County. Although forming an assessment district and letting the parcel taxes expire would raise about $50,000 less, the difference could be made up by belt-tightening moves, city officials said.

“The notion (behind the assessment district) is that you have some predictability and some stability in your funding structure,” City Manager James Hendrickson said.

Under its contract with the city, BSI will determine precisely how much individual property owners would pay to an assessment district. The average homeowner would probably pay less than he or she presently pays in parcel taxes, Hendrickson said.

However, because assessments would be based on property size, some homeowners would pay more than others, he said.

The city plans to mail the individual assessments to property owners within the next few months, city officials said. A public hearing on the matter will then be held in March or April.

If fewer than 5% of the city’s property owners file written protests, the council could move ahead and form the assessment district. If more than 5% but less than 33% protest, the city is required by state law to put the matter before voters. If more than 33% protest, the council must abandon the plan.