Show Me the Money
David Jaques, LANN Treasurer
Most residents of Los Altos will have an opinion on just how the city should spend its money. Public safety, traffic calming, recreational facilities and downtown parking all requiring public funding, are just a few of the many issues that are discussed frequently. In comparison, the city’s revenue sources receive far less attention, but are just as important when it comes to budget planning.
The economics of a city like ours are simple. Revenue comes from two broad sources – Program Revenue, consisting of grants contributions and charges for services; and General Revenues, consisting of taxes, interest and miscellaneous income. The city’s finance staff has to manage a budget of expenses and make contributions to various fund reserves within the amount of revenue receipts. Any significant decline in revenues will inevitably lead to cuts in city-provided services or the burden of excessive debt.
Property tax revenue is the largest single component of the city’s income. Due to the increase in property values over the last 5 fiscal years, revenue from property taxes has increased by more than 50% in that time. Although the rate of growth can be erratic, Los Altos has not experienced a decline in property tax revenues since 1994-1995. Sales tax, on the other hand, which has not enjoyed the same rate of increase, grew by only 12% in the same period of time; and sales tax revenues actually declined by 4% in the most recent fiscal year. About 16% of the city’s General Revenue comes from sales tax, which is a very small amount compared to some of our neighboring cities – 33% in Palo Alto, 37% in Mountain View, 38% in Sunnyvale and 42% in Menlo Park.
The demographics of the city can quickly explain why this is the case – Los Altos has a stable population of approximately 28,000, with a good level of disposable income and limited places to spend it. Los Altos is served by seven small retail areas; no shopping malls, no automobile dealerships and relatively few restaurants. While most of us strive to maintain our semi-rural village atmosphere, we have to accept that the proximity of large malls outside our city boundaries, and the convenience of online shopping, will always lure consumers’ money away from our town.
So what can we do to increase the sales tax revenue for our city? The answer may be simpler than you think. Shop locally. The top ten revenue-producing businesses in Los Altos (in order of tax revenues) are:
Gasoline Stations
Grocery Stores Liquor
Restaurants
Home Furnishings
Business Services
Specialty Stores
Drug Stores
Fast Food
Contractors
Sporting Goods/Bike Stores
The other large components of Los Altos’ tax revenues are the Utility Users Tax, which adds about $1,800,000 annually, and more recently, the addition of two new hotels resulting in more than $600,000 in Transient Occupancy Tax in the last fiscal year, compared to a big zero two years earlier. Encouraging out of town friends and business contacts to stay at these properties will also help generate income for the city.
Show me the Money, Con’t.
The outlook for the economy seems to be improving and if stock prices continue to rise, the potential for increased tax revenue looks promising. However, this is something we just can’t take for granted. Spending our money close to home is something from which we can all benefit.
Drive the extra mile on El Camino Real to buy your gasoline in Los Altos; walk that extra block to buy your Mother’s Day card and gift in downtown; factor Rancho Shopping Center and Loyola Corners into your thought process for businesses; pick up that bottle of wine for dinner at your local Los Altos grocery store. All these small, but important revenue streams to Los Altos will make a difference to our community.
New Applications for Housing
Kathy Putman, LANN Housing Chair
Council wants boutique hotel concept for First and Main amended into the downtown design plan.
Following a competitive and public evaluation process, the City Council selected a boutique hotel concept as the best land use for the City owned First and Main Street property at the entrance to downtown Los Altos. The boutique hotel concept includes a small restaurant, meeting rooms and other ancillary uses and an underground parking garage. The City Council desires to amend the Downtown Urban Design Plan to incorporate the selection of a boutique hotel concept as the best land use for the property. The Planning Commission will hold a public hearing to consider the amendment and forward a recommendation to the City Council. Please call the Planning Department for the exact date of this meeting at 947-2750 or call Community Development Director, James Walgren, at 947-2635.
New housing applications for June include...
story addition. Project Planner: Connolly
two-story addition. Project Planner: Rondash
story home.
design review for a two-story addition.
for a two-story addition.
addition. Project Planner: Rondash
design review for a new, two-story residence including a 1, 685 square foot second story(previously
approved under application 00-SC-57). Project Planner: Kornfield
A Colorful New Book About Los Altos Trees
Ann Combs, LANN Contributor, on behalf of the Los Altos Environmental Committee
Trees of Los Altos,
a new 88 page book featuring color photographs of 138 kinds of trees growing in Los Altos and some locations where each can be seen easily from the street, will be availble throughout the city in late May. This book is sponsored by the Los Altos City Council and its Environmental Committee to raise community interest in helping make Los Altos beautiful through the wise selection and care of trees.
The first edition of this book was published in 1970 and written by Ed Walker, the local nurseryman who encouraged the city to plant the Chinese Pistache trees that grace the downtown triangle. The black and white booklet featured addresses of several locations where each kind of tree could be easily viewed from the street. Former mayor, Kris Casto, asked the city's Environmental Committee to redo the book and bring it up to date. A survey of the original trees show that many have been lost in remodeling, or relandscaping , or have succumbed to disease or old age New examples were located and photographed. Specimens literally from A (acacia ) to Z (zelkova) are included.
The new book also includes a calendar of when various trees put on a show of color. It also lists trees recommended for special locations. It provides information about the city's tree regulations and offers a map of the wide variety of trees growing in the City Center.
Los Altos is a uniquely beautiful city. Our trees contribute greatly to its village atmosphere and to the health of our environment. Trees of Los Altos is the product of hundreds of volunteer hours spent on research, writing and photography plus a few very generous donations that helped defray printing costs. This enables all proceeds from sales of the book (priced at $12.00 plus tax) to be utilized by the non-profit groups selling them.
Ann Coombs is the author and photographer, but the book would not have been possible without generous help from JoAnne Byrne, Kris Casto, Patricia Evans, Allyn Felman, Bob and Marion Grimm, Mary Kaye, Roy Lave, Brian McCarthy, Susan Moss and Los Altos Garden Club members. Also helping were Don McDonald, Paul Nyberg, Elizabeth Robinson, Daphne Smith, The Los Altos Community Foundation and the members of the Los Altos Environmental Committee: Ken Lim, Chair, Hank Cooper, Jenny Fire-Halvorsen, Judy Fulton, Penny Lave, Linda DeMichiel, Jocelyn Orr, Julie Saffern and David Kornfield.
As the City Council once said in a resolution, "Trees help stabilize the soil, enhance views, provide privacy, counteract pollutants, maintain the climatic balance, decrease wind velocity, provide shelter and feed birds and other wildlife and provide fragrance and color. Trees are very important to the character of the city and add value to individual properties. The whole community benefits when new tree plantings, better care of existing trees and preservation of old trees occur." This new book, Trees of Los Altos will make everyone who reads it more aware of the trees that are so important to our city.
Trees of Los Altos can be purchased at the following locations:
History House; proceeds go to the History House
Chamber of Commerce; proceeds go to an education fund for the Environmental Committee City Hall; proceeds go to the General Fund
Main Street Cafe; proceeds go to the Los Altos Cultural Association
Action Will Speak Louder Than my April Article!
Since my April article about downtown revitalization I have attended the first two Farmer's Markets. The Market is bigger and so much better. Live music, entertainment for kids, food, wine tasting and crafts make this weekly event a party. If the new Farmer's Market is a reflection of Ted Garrett's ideas and ability to execute then Los Altos is on the fast track to revitalizing.
If you have ideas about what our downtown needs, please call Ted, 949-5282 or email your ideas to edlava@pacbell.net