Archive for May, 2008

Lingering consequence

Thirty years after California (and San Mateo County) voters overwhelmingly approved Proposition 13, the landmark property tax initiative, its significant after-effects continue to linger. One of those consequences can be found in Burlingame, where the average price of a single-family residence has topped the $1 million mark. Burlingame, in spite of its seeming affluence, is in something of a financial pickle. The town needs to spend at least $39 million to upgrade its aging storm drain system. It tried to get a bond issue passed and failed. The measure went down to defeat due, in part, to stiff resistance from people who bought their homes relatively recently and are being taxed at close to full market value. Meanwhile, long-term residents receive the benefit of Prop. 13’s tough restrictions on annual tax hikes. The argument of the newcomers is that they would pay much more for that proposed bond. Now, Burlingame authorities are taking another look at how to pay for those needed infrastructure improvements. And the question is: Will they bow to the howls of the minority and seek a funding mechanism that requires only a simple majority vote for approval and spreads the burden more evenly or will they go back to the electorate again with a more traditional bond that has a mandatory two-thirds threshold along with the Prop. 13 wrinkle? No one will be surprised if it’s the former route.

Posted on Tuesday, May 6th, 2008
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