By Rory Brown
Almanac Staff Writer
The Menlo Park City Council isn’t ready to put a new tax on the June 6 ballot as a way to help reduce a budget shortfall estimated at $2.9 million in the fiscal year starting July 1.
Councilwoman Kelly Fergusson, who requested the council discuss its tax options at the February 28 meeting, said the city needs to decide if it wants to work a tax into its long-term budget plans before deciding the extent to cut city services.
Councilman Andy Cohen said the city should put a tax on the June ballot to limit budget cuts, but the majority disagreed.
A June vote would require two-thirds voter approval because it would have to be a special-purpose tax, with spending limited to a specific purpose, such as police service. A general-purpose tax, which only requires a simple majority for passage, can be voted on only in November.
A tax measure on the June ballot would be “setting [the city] up to lose,” said Councilwoman Mickie Winkler.
“I’m reluctant at this time to count on a tax passing,” said Councilwoman Lee Duboc.
In a recent community-wide budget survey, 70 percent of respondents suggested the city consider a tax on utility bills that could generate about $1 million a year.
A 3 percent utility tax would generate about $2.4 million, covering nearly all of the budget shortfall, particularly if a new pool contract saves the city $400,000 a year.
A 3 percent tax would cost a household with $175 in monthly utility bills — for electric, gas, cable TV, phone and water — an additional $63 a year.
