HomeMy WebLinkAboutStaff Report 197-05.'\ ./,
City of Palo Alto
City Manager's Report
TO: HONORABLE CITY COUNCIL 6
FROM: CITY MANAGER DEPARTMENT: CITY MANAGER
DATE: APRIL 11, 2005 CMR:197:05
SUBJECT: ENDORSEMENT OF A RESOLUTION IN SUPPORT OF THE PALO ALTO
UNIFIED SCHOOL DISTRICT PARCEL TAX
RECOMMENDATION
Staff recommends that Council adopt a resolution of support for the Palo Alto Unified School
District parcel tax.
BACKGROUND
The Palo Alto Unified School District' (PAUSD) submitted a parcel tax measure (Measure I) to
Palo Alto residents in November 2004. The proposed measure would have increased the current
parcel tax ($293/year per parcel) to a total annual parcel tax of $521. The measure missed its
two-thirds requirement for passage by less than one percent.
PAUSD continues to experience significant budget shortfalls as a result of the continuing state
budget problems, local economic circumstances, and increasing enrollment. In response to these
conditions, the District has proposed another parcel tax, which is set for a vote by the citizens of
Palo Alto on June 7, 2005.
DISCUSSION
The District is currently receiving supplemental funding from a parcel tax measure that was
approved in 2001. This tax provides the District with $5.5 million annually. It is scheduled to
expire inJune 2006. In February 2005, the Board of Education voted to place a new parcel tax
measure of $493/year per parcel on the upcoming ballot. This new measure would replace the
existing measure and generate $9.3 million annually. This parcel tax would expire in six years.
According to P AUSD information, the new parcel tax will be used to "retain teachers layoffs,
preserve small class sizes in K-lO, and restore some of the more critical cuts to secondary class
offerings, counselors, and elementary literacy, math and art." The District has already gone
through the process of reducing administrative positions wherever possible. Any additional ~uts
to the District budget will most likely result in the degradation of Palo Alto schools as they
would affect the core of the schools educational objectives. The successful passage of the parcel
CMR:197:05 Page 1 of2
tax will help to prevent teacher layoffs and maintain the high quality schools that Palo Alto
desires.
RESOURCE IMPACT
Passage of the proposed P AUSD parcel tax, as does the passage of any tax that has a financial
impact on Palo Alto residents and businesses, may affect future City revenue raising proposals.
For example, the City is preparing a proposed Storm Drain Fee increase to improve its storm
drainage system. Passage of a new fee will be dependent on the ability of property owners to
absorb the fee if the PAUSD parcel tax is approved.
POLICY IMPLICATIONS
This resolution is consistent with existing City policies.
ENVIRONMENTAL REVIEW
This staff report does not represent a project under the California Environmental Quality Act
(CEQA). .
ATTACHMENTS
Attachment A: Resolution in support of the Palo Alto Unified School District Parcel Tax
PREPARED BY:
CHRIS OGENSEN
CITY MANAGER APPROVAL: --\-.,L~U'::::!::::!s~~~=-----
CMR:197:05 Page 2 of2
NOT YET APPROVED
RESOLUTION
PALO ALTO
RESOLUTION NO.
OF THE COUNCIL
IN SUPPORT
OF
OF
THE CITY OF
THE PALO
ALTO UNIFIED SCHOOL DISTRICT PARCEL TAX
WHEREAS, the education of our youth is vi tal to a
country's future; and
WHEREAS, the Palo Alto Unified District's (lithe
District") Board of Education (lithe Board") is cormnitted to
offering a high quality education program to all students in the
District; and
WHEREAS, an adequately funded and well-developed
public education program provides numerous benefits and
advantages to all of the residents of Palo Alto; and
as being
contribute
excellent-
dedicated
WHEREAS, key
among the
to high
teachers
parents and
components to the District's recognition
best in the nation and factors that
student achievement include providing
and challenging programs, and having
support from our community; and
WHEREAS, the District has been forced to eliminate and
curtail many essential educational services due to current
economic conditions, falling commercial property tax revenue
growth, and increasing enrollment and benefit costs; and
WHEREAS, the Palo Alto Unified School
submitted a parcel tax measure (Measure I) to
Residents in November 2004 that missed its
requirement for passage by less than one percent.
District
Palo Alto
two-thirds
WHEREAS, the Board, knowing the
funding, continues to seek to maintain
support our schools in order to preserve a
the students of Palo Alto and has placed a
tax on the June 7, 2005 ballot; and
uncertainty of state
stable resources to
quality education for
new· qualified special
WHEREAS, the passage. of the June 7, 2005, Palo Al to
Unified School District Parcel Tax is necessary in order to
maintain a high quality education in Palo Al to schools, avoid
deeper cuts to classroom instruction, maintain manageable class
sizes, and preserve educational programs that attract the best
teachers and school employees, and enhance student achievement
in order to maximize learning by our community's children; and
050321 sm 8260070
1
NOT YET APPROVED
WHEREAS, the Council of the City of Palo Alto concurs
that a qualified special tax is necessary to provide a high
quality educational opportunity for the students of Palo Alto.
NOW, THEREFORE, the Council of the City of Palo Alto
does RESOLVE as follows:
SECTION 1. The Council supports the passage of the Palo
Alto Unified School District Parcel Tax and encourages the Palo
Alto voters approve this measure on June 7, 2005.
SECTION 2. The Council finds that this is not a project
under the California Environmental Quality Act and, therefore,
no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVE;D:
City Attorney City Manager
050321 sm 8260070
2