Atherton to ask voters for five-year parcel tax Atherton to ask voters for five-year parcel tax (February 23, 2005)

By Andrea Gemmet

Almanac Staff Writer

Atherton officials are hoping five will be their lucky number.

At a June 7 special election, voters will be asked to renew a parcel tax measure that's identical to the one currently in place, with one exception -- it has a five-year, rather than a four-year term.

The majority of Atherton home owners -- those who live on developed lots of a half-acre to two acres in size -- pay $750 annually. Parcel tax revenues bring in about $1.8 million a year, which is divided between capital improvement projects, such as road repairs, and town services, such as the Atherton Police Department.

Atherton City Council members, after some hand-wringing about making any changes that might confuse or alienate voters, approved a five-year term on a unanimous vote at the February 16 meeting.

A five-year term would help with budgeting and planning, given the town's use of five-year budget forecasts, and off-year elections will reduce voter fatigue and confusion, they said.

The current parcel tax measure is set to expire June 30, and since the failure of a four-year parcel tax renewal measure in November, Atherton officials have been struggling to find a viable replacement for the revenues the tax generates.

The council backed an alternate plan to tax real estate agent commissions in December, but dropped the plan because of strong opposition by some residents and real estate agents.

The parcel tax requires a two-thirds vote to pass.

Even if the parcel tax passes in June, the budget will still be tight, as expenses rise and parcel tax revenues remain flat, according to Atherton Finance Director John Johns.

Atherton officials are looking into changing the rates of road impact fees, which could bring in an estimated additional $600,000 a year for road repairs. A proposal for the fee increases that would affect excavation and major landscaping projects is set to go before the council at the March 16 meeting, said City Manager Jim Robinson.

Councilman Alan Carlson said town officials must continue to search for a better, longer-lasting solution for the town's budget problems "so we won't be like Chicken Little, running around and saying the sky is falling" every time a parcel tax measure expires.

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