Vote “no” on the Kentfield School District’s proposed parcel tax.
The district has more than a year to address this inadequately disclosed request for increased taxes, during which time it would collect the existing parcel tax from both residential and commercial parcel owners.
It will also allow time for more conversation with the community in an effort to create a new proposal with broader support.
In 2016, the district attempted to renew and increase the residential parcel tax by 46 percent. It failed.
This should have sent both the school board and the superintendent a strong message, but evidently it did not because they have returned with a slightly pared-back version of the same proposal. They argue that voters were “confused” last time.
Voters are still confused.
A bit of background: A challenge now facing school districts is that tiered parcel taxes, under which commercial properties paid more, are no longer permitted as of the expiration of the existing tax in June 2019.
The resulting loss of $750,000 in revenues from those commercial property owners is the basis for this attempt to shift the burden to homeowners.
Kentfield homeowners are now being asked to pay a $1,500 yearly tax — the highest in the county — to fund one of its smallest school districts. In addition, there will be a 3 percent annual increase over 10 years.
The district has not made the case for a 10-year tax, which — with 3 percent escalators — will ultimately approach $2,000.
Rather than providing taxpayers with facts as to why the renewal and increase are needed, the district hired a political consultant for this second effort. A survey of the community, aimed at how best to “sell” the tax, was conducted.
Enrollment in the district’s elementary school grades is down. This is not surprising. Kentfield property values and taxes have priced most young families out of the area.
In justifying this high parcel tax, the district must explain why it needs Marin’s highest parcel tax, currently spending $2,000 more per student than neighboring districts in Larkspur-Corte Madera and Ross Valley.
The Kentfield School District has been receiving annual 5 percent increases under its existing parcel tax. Inflation for the last nine years has averaged under 2 percent.
In recent years, the district’s revenue from “basic” property taxes — the primary source of the district’s operating expenses — has gone up even faster, thanks to escalating property values. This increased revenue through existing funding should have helped lower the amount of the parcel tax request.
What is not being discussed by the district is its rapidly rising pension contributions — the “elephant in the room.”
California mandated increases to address massive unfunded liabilities in both the California State Teachers’ Retirement System (CalSTRS) and the California Public Employees’ Retirement System (CalPERS).
According to the district’s own budget documents, its pension expenses will rise about $200,000 annually for the next three years. This unfunded mandate for elevated pension contributions continues for decades.
The district’s campaign literature states that none of the “parcel tax” will pay for pension or administrative expenses. If, however, there were no increases in those pension contributions, isn’t it logical to surmise that the amount of the proposed parcel tax could be lower?
Vote no on this tax. Demand more transparency. The school’s funding is in place for the next year.
To garner support, the school board must spend that year developing new solutions to make the district more affordable.
David Wren of Kentfield is a founding member of Citizens for Sustainable Pension Plans, a Marin-based public pension reform group.
