The San Francisco Peninsula Real Estate Blog

In a move that is becoming commonplace in communities on the Peninsula, the City of Burlingame is considering parcel tax as a way to support its school system.  Burlingame already has a  $104 per year parcel tax in place that supports the Burlingame Elementary School District, but that tax expires in 2011.  And with continuing State budget cuts, the School District will need these funds to avoid dipping too deep into their cash reserves.

Burlingame isn’t the only city who will be asking voters for help this year.  San Carlos will be putting a $78 parcel tax on a special ballot in May, less than a year after a similar Measure was defeated.   Redwood City is looking at taking similar steps as well.

Here’s some additional information on the Burlingame proposal, courtesy of The Daily Journal:

Burlingame Considers Parcel Tax Renewal

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There’s absolutely no doubt that the quality of the public school district is one of the top decision criteria for home buyers as they decide where they will ultimately live.  Parents want the best schools for their kids, and home-buyers want their investment to retain value.  Homes in the more desirable school districts fetch higher prices, almost as if they’re tracking the API scores of their respective schools — the higher the API scores, the higher the home prices.   The converse is true as well.

But should you buy a home solely on which school district it resides in?    As some Burlingame families found out this week, the answer is a resounding NO.   Just because you fall within the stated boundaries of a particular school, it does not mean you are guaranteed to get into that school.    Residents in certain San Carlos school boundaries found this out last year.   Clearly, in the case of Lincoln Elementary School, there were examples of inexplicable miscommunication on behalf the School District.  But at the end of the day, this is of no consolation to those parents who will have to enroll their children in other schools.

What can you do?

If you’re searching for a home, and the school district is of paramount concern to you, the best thing you can do is arm yourself with as much information as possible.   Here are three key things you can do to ensure you’re making the right decision:

1. Interview the School Principal.  Find out what the current enrollment is, and what the trends are (increasing or decreasing?)   What percentage of capacity is the school currently at?   When are they projected to be full?   What plans are there to increase capacity?   Meet with the Principal in person, if possible.
2. Understand the District’s policy on Impaction.   What happens when a school is impacted?   How does the District handle decisions on inter-district transfers?  Does having a sibling in the school give higher priority.   These decisions are almost always made at the District level, so get in touch with the respective district and understand their policy.   Call the superintendent if you need to.
3. How are the adjacent schools? It’s not uncommon on the  Peninsula to have a high-scoring school adjacent to under-achieving ones.   Check out the schools adjacent to the area you are searching in.   If you wouldn’t send your kids to any of those, then you’re taking a much bigger risk by buying into a single district.

The bottom line?  Do your homework.  Every school on the Peninsula has its own website, and every School District has one as well.   The contact information for the Superintendent, Principal, and School Board Members is readily accessible.     Be the one to initiate the contact, ask questions, and make yourself a pain-in-the-rear if need be.    Don’t put yourself in a situation where you will suddenly resent the biggest purchase that you’ll likely ever make.

There’s simply too much at stake….

To the surprise of few, the City of Burlingame announced that they will likely face a budget deficit of nearly $5M if they approve all of captial expenditures that are specified in the pending budget.    The San Mateo Daily Journal has outlined the details in this article:

Burlingame Faces Revenue Cuts

It’s not a surprise because other communities up and down the Peninsula have stubbed their toes in the same manner.  San Carlos recently announced that they are operating in a critical deficit mode, and consequently made difficult cuts to balance the budget.   While it’s not the primary culprit, the drop in real estate sales has helped exacerbate the problem in many communities.   City managers will project a certain amount of increased property tax revenue based upon anticpated sales volume — but we all know that this sales volume has not materialized this year, and the those homes that have sold are taking significant discounts.

So, like San Carlos and other communities on the Peninsula, Burlingame is going to have to make some tough decisions.   And like San Carlos, it will probably have to do more with less.

Burlingame is viewed by some as one of the last bastions against the tide of bad news in the real estate market.  Like a few other highly sought-after communities on the Peninsula, Burlingame has resisted the downward pull of the real estate market for most of the year.   But no community is immune from such a prolonged slump, and Burlingame is no exception.   Here’s a quick summary of single family residence sales for the past quarter (July – September 2008) in Burlingame:

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Note that both the median and average prices, as well as the number of units sold, have all dropped by double-digit percentages from last year.  Comparing it to Q2′08, with the exception of eking out a small gain in unit sales, the same phenomenon occurred.   Here’s a graphical representation of the sales performance by quarter for the past two years.

Finally, in what’s probably the most telltale example of the paralyzed market we’re in right now, take a look at the year-to-year unit sales figures below.   Clearly, the economy has spooked sellers as well and it’s understandable why with prices dropping the way they are.