Atherton Considers Charter Status and Transfer Tax

The Atherton City Council is considering whether to pursue charter city status. While the council says the primary motivation is not to raise revenue, members have discussed a potential funding measure based on real estate values. Since Atherton has very little commercial property, residential real estate is the most likely source of additional revenue.

Most cities in California are general law cities, meaning that they follow a prescribed governing structure outlined by state law and have limited additional authority. However, by becoming a charter city, they gain the ability to become much more flexible in how they choose to govern and administer city services, but typically at the cost of having to assume more responsibility with fewer resources from the state.

Currently, the primary motivating factor for Atherton seems to be additional protection from state housing law. Recently, several charter cities won a lawsuit against the state regarding the applicability of SB 9. A judge in that case found that because SB 9 didn’t immediately address housing affordability, it did not override the “home rule” authority charter cities have. That case is now heading to an appeals court.

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Source: Palo Alto Daily Post

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