More new taxes, now?

Moreover, city fees have also increased dramatically. For example, city residents now pay +12% more in garbage fees versus last year. And on Dec. 4 there will be a city hearing to approve a +39% increase in residents’ fixed water service charges (from $59.04 to $82.09). And, despite sewer charges double what many nearby cities pay, the city hired a consultant to evaluate increases beyond the current $89.28 per month sewer rate.

In fact, I have learned the city has hired (at our expense) at least six separate consulting firms to identify and develop plans to raise our taxes and fees further. And once they figure out which taxes to pursue, they plan to hire polling and marketing firms to try and help “convince” us of the wisdom of new taxes. These firms will likely help the city draft a deceptive ballot question to trick voters into voting “yes,” effectively allowing the government to take sides in an election with our money. Just follow the Measure RR or school bond playbook.

Why is the city doing this? Because, despite all the past tax and fee increases, the City Council and city manager say they need more money. And if the spending problems continue, perhaps they will. But spending is the problem.

I have watched every City Council meeting for the past two years. It has approved every single expenditure staff has requested with not a single councilmember ever voting “no;” all expenditures are voted “yes” unanimously.

So, what are they spending our money on? Examples in the past few months include $1 million of luxury office furniture (with $2,000 Herman Miller chairs), a posh weekend wine retreat in Sonoma for all City Council and city staff, approval of a large salary increase for the city manager with base salary of $394K and total comp at $500k, and an army of consultants to derive new ways to take our hard-earned money.

Equally concerning, is that there has never been a staff agenda item focused on how to cut costs given the budget challenges they repeatedly cite. Consider this: property taxes and sales/use tax are the largest sources of revenue for the city. And over the past four years (2017-18 to 2021-22), the city’s revenue has increased +41% from property taxes (from $51.3M to $72.5M) and +62% from sales tax/use tax (from $22.1M to $35.8M).  All, while population in Redwood City has declined almost 9% since 2020. Has your household income jumped 41%? If it did, would you be asking others for more?

Well, the city says they need more of your money. On Nov. 27, the City Council will decide whether to pursue a property transfer tax, which is an expense incurred whenever anyone buys a home (i.e., on the closing statement at escrow). In other words, they are going to consider making life even more difficult for first-time home buyers by adding “junk fees” on homes. How is making a home less affordable consistent with the goal of affordable housing and equity for all residents?

They are also looking to add a business license tax based on gross receipts. Without exemptions for small retail and grocery stores, the tax will be passed onto residents in the form of higher prices.

We love our kids. But if they were spending money recklessly, we wouldn’t give them an increase in allowance. The same can be said with our city. The time has come to say no to continued mismanagement and failure in financial accountability.  

We need to send a clear message to City Council that it needs to do its job and insist money is spent wisely and, if there is a deficit, to do the requisite belt tightening in house like families are doing.

Let your voices be heard by either attending the Nov. 27 City Council meeting and/or sending your comments to both council@redwoodcity.org and to publiccomment@redwoodcity.org (with “New Taxes” in the subject line).

Chris Robell is a Redwood City resident, retired CFO and taxpayer advocate. He can be reached at chris_robell@yahoo.com