Atherton drops parcel-tax increase Atherton drops parcel-tax increase (July 28, 2004)

** Most property owners would pay $750 a year under renewal measure.

By Andrea Gemmet
Almanac Staff Writer

A divided Atherton City Council dropped plans to ask voters to approve higher parcel-tax levies in November, deciding to stick with the current parcel-tax rates for its four-year renewal measure.

Saying that Atherton residents would not pass a parcel tax renewal that would cost most Atherton homeowners $930 per year, the council reversed its June decision at the July 21 meeting and voted 3-2, with Alan Carlson and Charles Marsala opposed, to use the current tax structure in the renewal measure.

Homeowners with a parcel of one-half acre to 2 acres in size currently pay $750 a year.

The parcel tax funds capital-improvement projects, such as road and drainage repairs, as well as operating expenses for town services such as the police department.

"A number of people said they would vote against $940," said Councilman Bill Conwell, referring to the average annual cost of the higher parcel-tax levy. "I asked if it went back to $750, would they be back on board? And they said yes."

Mr. Carlson complained that by reversing itself, to voters "it looks like the council is in chaos." He has been proposing that the council wait until the March ballot and ask voters to pass a comprehensive plan, such as a parcel tax and an additional type of tax, such as a tax on real estate agent commissions.

"It's not chaos, it shows we're listening," responded Mayor Kathy McKeithen, who championed retaining current parcel-tax rates.

By keeping the parcel-tax structure as-is, Atherton will likely face significant budget problems over the next four years, with an increasing need to tap into its reserve funds, according to financial projections.

A number of ideas to boost the town's revenues have been circulating. Besides the tax on real estate agents' fees, a utility-users tax, and a restructuring of business license and building permit fees are under consideration.

The council decided to devote its August 18 meeting to discussion of revenue-boosting measures. Traditionally, the council takes a summer recess and cancels its August meeting.

E-mail a friend a link to this story.