Atherton passes $12.2 million budget Atherton passes $12.2 million budget (June 30, 2004)

By Andrea Gemmet
Almanac Staff Writer

Tightened belts are still the order of the day in Atherton. Facing $440,000 in increased costs for staff benefits, the Atherton City Council spent four hours looking for excess fat to trim from an already lean budget before unanimously passing the proposed $12.2 million budget for fiscal year 2004-05 at the June 16 meeting.

The town's $8 million operating budget is $75,000 smaller than originally proposed, after council members found a few places to make cuts. Those include eliminating a contract horticulturist for Holbrook-Palmer Park, at a savings of $16,000, and reducing the estimated cost of paying for the county crime lab's services from $30,000 to $8,000.

"It was a very thorough budget review this year," said Finance Director John Johns.

The budget includes $4.2 million for capital improvements, $2.6 million for street repaving and reconstruction, and $600,000 for repairs to the town's drainage systems. It marks the final year of Atherton's four-year, $11 million capital-improvement program, which is largely funded by revenues from the town's parcel tax.

Reduced staffing levels in town will remain, but no additional positions were cut by the council, said City Manager Jim Robinson. Staff recommended making the city clerk post a half-time position for the second half of the year. City Clerk Sharon Barker retired earlier this month, and a permanent replacement isn't expected to be hired until fall.

The Atherton Police Department will continue to leave two officer positions unfilled, saving $320,000. The job of park maintenance supervisor, unfilled since Joseph Mercer retired last year, is being done by a contract landscaping service, saving the town $40,000 annually.

The cost of pension benefits is going up $368,000 in the next fiscal year, and the cost of other employee benefits is rising by $72,000, driven by the higher costs of health-care plans.

Two new patrol cars for the police department survived the budget cuts, at a cost of $66,000.

While the budget for 2004-05 is balanced, leaving Atherton with almost $5.7 million in the bank by the fiscal year's end, the outlook for the following three years is far from rosy, according to Mr. Johns' report. His budget forecast projects a general-fund balance of $3.4 million by June 30, 2008, about $300,000 less than the minimum level of $3.7 million designated by the council.

Taxes

Council members have been looking closely at ways to increase Atherton's revenues, and have discussed the possibility of taxing real estate agents' commissions on properties sold in town.

Also at the June 16 meeting, the council authorized a parcel tax renewal measure for the November ballot that would increase levies beginning July 2005. For most Atherton homeowners, the maximum parcel tax levy will jump from $750 to $930 a year. The tax levy is lower for small and undeveloped parcels, and higher for commercial properties and parcels larger than two acres.

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