Election 2004: Atherton parcel tax falls short Election 2004: Atherton parcel tax falls short (November 10, 2004)

By Andrea Gemmet
Almanac Staff Writer

Is this the end of the parcel tax in Atherton?

While the majority of Atherton voters approved a four-year renewal of the town's special tax, which costs the average Atherton homeowners $750 a year, Measure O fell far short of the two-thirds vote needed to pass.

As of the Almanac's press deadline on Monday, 56.9 percent of the vote was in favor of the parcel tax.

The last time the special tax failed, voters were sending a clear message to Atherton officials that they didn't like the way the town was being run. This time, there was no organized opposition to the parcel tax. Of course, this time there was no organized effort by proponents to publicize the town's need for the parcel tax, either.

"Simply put, I think we were too complacent," said Councilman Jim Janz.

Council members were so pleased that they had figured how to keep the town finances in the black while still keeping the parcel tax at its current $750 rate by cutting costs and raising money through other means, "we couldn't see the forest for the trees," Mr. Janz said.

The Atherton Audit Committee recommended increasing the parcel tax to $940 a year to help close the budget gap.

"Things couldn't be any better in terms of the need for the parcel tax, and it couldn't be more well-spent," said Mayor Kathy McKeithen, who was elected to the council in 2000 as a vocal critic of the way the town was being run.

She led the opposition to the parcel-tax measures that failed in November 1999 and March 2000, but, as a new member of the City Council, supported its subsequent successful campaign in 2001, following a number of fiscal and town management reforms.

"If I'd ever thought this was going to (fail), I'd have had someone do an exit poll," Ms. McKeithen said.

Since 1980, the town has shored up its budget with the special parcel tax, largely to make up for state takeaways of property tax revenue. It raises about $1.8 million a year, with $1 million going to fund capital improvement projects such as road and drainage repairs.

Cat Westover, a former member of the Park and Recreation Commission, said she voted against the parcel tax because the City Council didn't make a convincing argument.

"Show me a reason to give you more money. I already pay thousands and thousands of dollars in taxes, " Ms. Westover said. "I don't know anybody who (did vote) for it."

She said the council was out of touch with Atherton residents on the parcel-tax issue, just as it was with the divisive issue of the town's tennis courts -- last year, the council disappointed tennis enthusiast by eliminating a repaving and refurbishing project from the budget, saying too few people use the courts to justify the expense during difficult economic times.

In her opposition piece written for the Atherton Civic Interest League's newsletter, Ms. Westover argued that the Atherton Police Department is too expensive, and the town should look to cost reduction measures, such as laying off officers, reducing pension benefits, and eliminating overtime.

"At a time when everyone is cutting back, the whole state is cutting back, it's not the time to have a luxury (police department)," Ms. Westover said.

Mr. Janz argued that the Police Department is already running lean, and that any further reductions beyond the two positions the City Council recently eliminated would affect patrols.

Councilman Alan Carlson said he thought Ms. Westover's opposition article, which he called "a distortion," contributed to the parcel tax's defeat.

"That the town could just cut the police department makes no sense," Mr. Carlson said.

However, he said he didn't see the parcel tax's failure as a huge negative.

"I have no interest in putting the parcel tax back on the ballot (in March). I think it is seriously flawed, and it always has been," Mr. Carlson said.

The council has been exploring a number of alternative revenue sources, and is working toward a new business license fee structure that would tax real estate agent commissions and construction companies. It remains to be seen whether those alternatives will replace the parcel tax, or if the City Council will place another parcel-tax renewal measure on the March ballot. The parcel tax expires at the end of June 2005.

Mr. Janz and Councilman Charles Marsala both said they would keep their options open. The council is set to discuss the town's finances and the parcel tax's future at the November 17 meeting. Mr. Marsala did concede that the City Council loses a lot of productive time every four years worrying about whether the parcel tax will get renewed.

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