Why can’t the Town afford to provide a higher level of service, considering the wealth of the community and high home prices?

Property taxes account for about 77% of General Fund revenues, so limited property tax also limits Town resources.[1]

Despite high home sales prices, State Proposition 13[1] , approved in 1978, limits increases in property taxes to 2% maximum each year (until property is sold). Many homes are assessed and taxes at values much lower than market sales values, thus property tax revenues do not fully reflect high home values.

The Town only receives 26 cents of each property tax dollar;[2] the remainder goes to the County, schools, and other agencies.

The Town has few other sources of tax revenue since it does not have multiple shopping malls, big box stores, or other major commercial activities that typically generate revenues. However, the Town must still fund street maintenance, police, fire and other services, while performing essential upgrades to aging infrastructure and facilities.


[1] Town of San Anselmo: Budget and Work Plan 2020-2021, pg. 36.

[2] Ibid, Town Budget FY2020-2021, pg. 36.

 


Show All Answers

1. What is the impact of COVID-19 on the Town’s budget and services?
2. Why can’t the Town afford to provide a higher level of service, considering the wealth of the community and high home prices?
3. How much of the Town’s budget goes towards pensions, and what are the potential future impacts on the budget and services from growing pension obligations?
4. Measure M failed in November 2019, so what is next to finance some sort of renovation of Memorial Park? Is there any money available in our current budget?
5. What services does the Town share with neighboring cities and agencies? Are there additional options for sharing which could save the Town money and improve its level of service?
6. How much is spent on maintaining roads every year, and who pays for it?