San Carlos Residents to Decide Two Tax Measures

This November 3rd, residents of San Carlos will be asked to dip into their wallets not once, but twice.

If you have lived in San Carlos for an appreciable amount of time, you’ll likely recognize the previous incarnations of both of these tax measures, because they tend to cycle back every few elections, but usually on different cycles.

This year, they will share the same ballot, and that may hurt the chances of one, if not both, in passing. Here’s a quick summary of both tax measures:

Measure G.

As I first discussed in this post, Measure G is a proposed 1/2 cent sales tax increase on goods that are purchased in San Carlos. The estimated $6,000,000 over 14 years that the tax will generate will provide funding for general use, according to the City of San Carlos website. The spending priorities are:

• Keep existing parks and community facilities safe, clean, and well-maintained, and add future parks and facilities.
• Fix potholes and maintain City streets.
• Upgrade fire protection, police, and paramedic services to continue rapid 911 emergency response.
• Repair aging infrastructure including storm drains, sewers, sidewalks, curbs, and public facilities.
• Make downtown San Carlos pedestrian-friendly with redesigned streets, wider sidewalks, and connected public plazas.

The last time the City of San Carlos put a sales tax measure on the ballot was 17 years ago, in 2009, with Measure U, and it was defeated 43.2% to 56.8%. This measure will face significant resistance from residents who are clearly unhappy with the decisions that have led to the budget shortfall in the first place, and the priorities for spending these funds that the City has outlined above. If the small sampling from this poll that I posted in the Measure G post is any indication, this is not going over well so far.

Measure G requires a simple majority to pass. In 2009, fewer than 7,000 residents bothered to vote on Measure U. I hope the turnout is far greater this time around.

Measure K.

The other tax measure on the ballot for San Carlos residents to decide is Measure K, which is an increase and continuation of the existing tax that supports the San Carlos School District. Unlike Measure G, which is a sales tax, Measure K is a $489 annual tax that is levied against every parcel in the City and would run for 8 years. The windfall to the school district is estimated to be $4.4M per year for that period of time.

Unlike Measure G, Measure K requires a 2/3 supermajority to pass.

If you feel a little deja vu when the topic of parcel tax measures and school funding comes up, you’re probably justified. Measure K will be the sixth time since 2003 that the San Carlos School District has reached out to San Carlos residents for funding. Here are the previous 5:

• 2003 (Measure D): Imposed an initial yearly parcel tax of $98, which grew to $110.60 per parcel through a cost-of-living adjustment, running through 2011.
• 2009 (Measure B): Imposed a tax of $78 per year per parcel, running through June 30, 2015.
• 2011 (Measure A): Renewed the $110.60 per year per parcel tax for eight additional years through June 30, 2019.
• 2015 (Measure P): Combined and increased previous rates to $188.60 and later structured higher rates (totaling $246.60 combined prior to 2020).
• 2020 (Measure N): Added an annual tax of $88.00 per parcel to the existing rate for a total of $334.60 per year per parcel, running through June 30, 2028.

As a Realtor who sells many homes in San Carlos, I have no doubt that school districts and home prices go hand in hand. The better the schools, the higher the home prices – the data is simply irrefutable. But I have found that parcel tax measures are a bit more nuanced than a straight sales tax increase. The latter is much more straightforward – if you purchase something in San Carlos, you’ll pay slightly more. If you don’t, you won’t.

In contrast, parcel taxes impact just about every household in San Carlos, with the exception of residents over 65 years of age who apply for an exemption, but the benefit to each household can vary widely. Consider the following inconsistencies that voters have to consider:

• Not every household in San Carlos has kids, period, let alone school-age children who directly benefit from the increased funding.
• The vast majority of parcels in the Alder Manor neighborhood of San Carlos are zoned for Redwood City schools, not San Carlos, so they don’t benefit, directly or indirectly, from improvements to San Carlos schools. Yet they will still be required to pay the tax.
• Owners of investment properties in San Carlos take a direct hit to their bottom line unless they choose to pass the increase in property tax on to their tenants. One could argue that they enjoy higher rents in the first place if their rental property is located within the San Carlos School District.

How do you plan to vote on Measure K? Register your vote in the poll below:

The Outcome?

If I had to make a prediction today, I would say that Measure K will be victorious, while Measure G will likely fail. San Carlos has a long history of supporting its renowned school district, even when residents don’t see the direct benefit.

But I sense too much discontent with the apparent disconnect between the City Council and the residents of San Carlos on key spending and policy decisions to think that residents are simply going to be OK handing over another $6M to fund a questionable list of priorities. Even though only a simple majority is needed, I predict Measure G will go the same route as its predecessor, Measure U.

The most important point? If you take nothing else away from this post, please be sure to vote — no matter your position!

Feel free to leave your opinion in the comment section below…