Atherton readies parcel tax plan Atherton readies parcel tax plan (March 03, 2004)

By Andrea Gemmet

Almanac Staff Writer

The Atherton City Council is preparing to take the case for renewing the town's special parcel tax to the public.

Town officials plan to put a parcel-tax renewal measure on the November ballot, but have yet to decide whether to ask voters to boost the tax, and if so, by how much.

An article on the issue will be in the next edition of the town's newsletter, the Athertonian, and the council has scheduled public meetings on the parcel tax for this summer. At its February 18 meeting, the council opted to ask the town's audit committee to work on a pamphlet explaining the town's financial situation, particularly the effects of the state's budget crisis on Atherton's revenues.

Currently, homeowners with lots between 1/2 acre and two acres are assessed $750 a year, and those with larger lots pay $960. Those with smaller parcels and undeveloped lots pay less.

The existing parcel tax measure was approved in June 2001 and expires June 30, 2005. The parcel tax raises about $1.8 million annually, and supports the town's operating and capital improvement budgets.

To date, most of the council's discussions have centered around how best to convince Atherton voters that parcel tax revenues are necessary and will be well spent. Budget projections by Finance Director John Johns indicate that the town will have to draw on its reserve funds or cut back services to make ends meet if the parcel tax is not renewed, and the levy amount not increased.

According to Mr. Johns' calculations, the current parcel tax levy averages out to $717 per parcel. By increasing the average levy to $913, the parcel tax would raise $2.3 million annually. But the town would still need to cut $250,000 from its operating budget and $250,000 from its capital improvement budget to make ends meet.

By increasing the average parcel tax assessment to $1,110, Atherton could preserve its $1 million annual capital improvement budget and dedicate $1.8 million to maintaining town staff and services at current levels, Mr. Johns said.

Although Atherton staff said there are no legal reasons to prevent the town from drafting a parcel tax measure that lasts longer than four years, the idea appears to have little support on the council.

"We're asking for such a substantial increase, potentially, ... I can't see asking for that much money and a blank ticket," said Mayor Kathy McKeithen.

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