As they head to the polls Tuesday to vote for City Council candidate Elizabeth Lewis or Jim Dobbie, Atherton residents aren’t likely to be thinking much about Mayor Jim Janz’s “out of the box” idea to annex a good chunk of unincorporated North Fair Oaks on the city’s northern and eastern borders.

But when the full council convenes with a new member, we suggest that they begin a dialogue to discuss the possibilities for relieving some of the budgetary pain the town has experienced over the years. We believe the mayor makes some good points: There is pressure from regional and state agencies to build more multi-family housing, which is not going to happen on the mostly one-acre, strictly single-family residential parcels that make up the bulk of the town today. Clearly Atherton, which has no commercial property or multi-family housing, could benefit from sales-tax-generating enterprises and smaller lot developments.

Mr. Janz admits that there is a downside, which is that many annexation plans do not end up producing a net gain for the acquiring entity. For example, just to provide adequate police protection for what is now the unincorporated county community of North Fair Oaks could add thousands of dollars to the town’s annual budget. And planning and zoning matters could also be a drain on the town’s coffers.

On the plus side, Mr. Janz says several members of the county Board of Supervisors and Redwood City’s City Council indicated they not would oppose annexation, although it is way too early in the process to be able to count on support from any board or agency.

But looming in the future is the 2010 expiration of the current parcel tax, an exercise that has in recent years been a pain in the side of Atherton council members and town officials. The $750 annual levy doesn’t seem like much in such an affluent community, but anti-tax opponents never fail to take the opportunity to bash the town’s failings before voters have their say.

Mr. Janz believes it is possible for sales tax collections from an annexed area to drop to the bottom line, and give the town a new source of income. That might appeal to some Atherton residents, but we predict that many would turn up their noses at being associated with the smaller homes and businesses found east of Middlefield Road up to Fifth Avenue. In addition, the North Fair Oaks community may not be eager to jump on Atherton’s bandwagon, especially if it means paying a parcel tax for the privilege.

Mr. Janz said he had been thinking of the annexation idea for the last 10 or 15 years, but did not promote it because he thought it would not get any traction. We believe now is the time to study the idea and decide if it deserves a push or should be relegated to the junk heap. The new council should take a serious look at the pros and cons of annexation. It may, or may not, be an idea whose time has come.

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