The Mercury News Editorial –
Editorial: Reject Piedmont property tax hike for pool repairs
The Mercury News editorial is copied below:
“Piedmont residents tax themselves to ensure that they have the best schools and premier city government. The average homeowner pays $4,400 in extra taxes for schools and another $635 for city services.
But those taxes also drive up the cost of housing in the exclusive city surrounded by Oakland and further ensure that those with average means will not be able to crack the city’s residential market.
Voters in Tuesday’s election will face two tax hikes. Measure TT, which we have previously recommended voters reject, would increase the city’s tax on property sales to state record-high levels. Now we look at Measure UU, a $19.5 million bond proposal to pay for replacing three old community pools with two new ones. Voters should reject that, too.
Based on the city estimates provided to voters, Measure UU would add an average $263 annually to the tax bill for a home assessed at the city average of slightly over $1 million.
It a bit of a tricky calculation for voters because city officials in the ballot wording obfuscated the projected average tax rate as 2.6 cents per $100 of assessed value rather than an easier-to-understand $26 per $100,000.
It turns out that the city overstated that rate, especially for the latter part of the 30-year tax. The firmer number is that city taxpayers would collectively pay about $1.3 million annually to retire the bonds needed to finance the construction.
To put that number in perspective, the city spends more than that – nearly $1.7 million to be precise – just to cover the interest payments on public employee pension debt. Put another way, most of the pool bond payments could be covered by Measure TT, which is expected to add about $948,462 annually to the city’s transfer tax revenues.
Individually and collectively, the two measures raise a question of, how much is too much? Rather than throwing multiple tax measures at voters, city leaders need to prioritize and look for savings elsewhere.”