Guest opinion: Why support the Atherton parcel tax Guest opinion: Why support the Atherton parcel tax (October 20, 2004)

By Kathy McKeithen

Four years ago, as an outspoken critic of the state of affairs in Atherton, I helped to successfully challenge the parcel tax twice. Today, as mayor of your town, I want to explain to you how the elapsed time has brought enormous change and why you need to vote in favor of continuing this tax, which is Measure O on the November ballot.

To understand the history of the parcel tax, one must realize that it was initiated in Atherton in 1980 as a response to Proposition 13, which severely limited the amount a town could collect in property taxes. For more than two decades it has been a critical source of income, now averaging approximately $750 per 1-2-acre parcel of developed property. With this amount, Atherton raises approximately $1.8 million a year.

Four years ago as I ran for City Council I pledged that I would strive to ensure that certain changes were made in the way parcel taxes were utilized. I know of no promise that has not been fulfilled:

1. Today, almost $1 million of parcel tax funds per year pay for capital improvements -- work on roads, drainage and buildings.

2. We have a lean government machine. This year the category of workers known as "miscellaneous employees" are to receive no salary increase as part of a negotiated agreement last year. Management received only a 3 percent salary adjustment, one of the smallest increases in the area.

3. Whenever possible we have made use of the availability of state and federal grant money. A small sample includes the purchase of new speed signs which cost approximately one-third as much as the old signs and monitor all traffic for time and frequency as well as speed so we can respond quickly to trouble areas.

4. We have increased revenue by ensuring that fees bear an appropriate relationship to the costs, particularly with regard to building and special use permits. We have negotiated higher fees for our postal contract (while providing increased customer service), the day care center, and recently El Camino Real maintenance ($26,700 per year).

5. We have further decreased staff costs by not filling the positions of two sworn police officer and one park supervisor, having schools bear most of the cost of the school resource officers provided to them, and "downsizing" the positions of city clerk and town administrative assistant.

There is no surer sign of the health of Atherton today than the fact that for the first time since its incorporation in 1923, the town has had not only one, but four unqualified audits. This means that the auditors found no reason to suggest that the audited numbers were not what they appeared to be.

What they saw was what you were getting. Moreover, this year the town auditors provided no management letter outlining suggested possible improvements because there were no further improvements that they believed needed to be made.

Here are the consequences of failing to support a continued parcel tax at the current level:

1. A $5.9 milllion budget deficit by 2009.

2. The elimination of almost all the town's monetary reserves, or a 30 percent to 40 percent reduction in all non-building department staff (the building department supports itself by permit and related fees).

We need to retain the parcel tax in order to keep Atherton on a firm economic and administrative foundation and to fund necessary capital improvements. Your City Council pledges to continue to try to cut costs wherever possible, but the parcel tax is critical to our way of life until we can find one or more solutions that can provide a more stable source of alternative and/or supplemental funds.

The language of Measure 0 contains our promise to do so expeditiously. For now we need you to support Measure O in the November 2 election. Remember, all parcel tax money stays in our town and is tax-deductible.

Kathy McKeithen is mayor of Atherton.

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