PUSD Committee Recommends 5% Parcel Tax Hike

The Piedmont Board of Education should authorize the maximum permitted increase – 5 percent – in the levy rate for the Measure B parcel tax for the coming year, an advisory committee recommends.

The recommendation will come to the board at today's 7 p.m. meeting in the City Hall council chambers, 120 Vista Ave.

The increase, for fiscal year 2012-13, would raise about $430,000 in additional funds for the Piedmont Unified School District, according to the committee's report.

The recommendation from the Citizens’ Advisory Committee on Parcel Tax Program, Measures B and E, says, "All revenue should be spent in the 2012-13 fiscal year to address deficit  spending resulting from significant cuts in state funding over the last four years as well as from possible mid-year cuts in 2012-13 if tax measures anticipated on the November 2012 state ballot do not pass.

"Members of  the Committee have grave concerns about the impacts of further increases inthe District’s high parcel taxes, particularly on fixed-income and low-income residents, but reluctantly find them necessary for this year.

"To put this amount in perspective: in 2012-13 this increase is equivalent to roughly half of the District's best-case deficit ($764,000 as of December 2011 First interim); and approximately $300,000 in seniority-based (“step-and-oo|umn”) salary increases to District employees’ salaries offset half of the parcel tax increase."

Committee member George Childs wrote a "minority opinion," urging the board to limit any increase to no more than 2 percent.

In total, Measure B raises about $8 million a year for the district. The board authorized two previous 5 percent increases, for fiscal years 2009-10 and 2011-12.

A second parcel tax, Measure E, expires at the end of the current fiscal year.

Also on tonight's agenda:

• The 2011 annual report from the Citizens' Oversight Committee for the Seismic Safety Bond Program.

• A review of the district's second interim financial report for the current year, along with a request to certify the district's ability to meet its financial obligations for the current year and the next two fiscal years.

• A request to allow District Superintendent Constance Hubbard to authorize Cahill Contractors to proceed with work on retaining walls at Beach Elementary School even though negotiations on total cost are still under way.

The meeting agenda is attached as a PDF above. The agenda and supporting materials, including the advisory committee's complete recommendation on Measure B, are available on the PUSD website.

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