Portola Valley: Town Center project draws from reserves Portola Valley: Town Center project draws from reserves (July 13, 2005)

By David Boyce

Almanac Staff Writer

The project to rebuild and redesign the Portola Valley Town Center will draw on the town's reserves in a budget in which the rise in spending is expected to outpace the rise in income over the 12-month period that began July 1.

Both revenues and expenses are expected to be around $3.5 million for the 2005-06 fiscal year. Reserves are $4.2 million, but most of that is set aside for the Town Center.

Overall spending should rise by 8 percent, driven mainly by $660,000 for the Town Center project, funded in part by a transfer of $495,000 from the Town Center reserve.

A 5 percent increase in overall revenues is expected. Key factors are assessed property values, projected to rise by 7 percent, and building-permit-fee revenues that may rise by 13 percent, reflecting an "upswing" in construction activity in town, said Town Administrator Angela Howard in her annual budget message.

The five-member Town Council recently approved the budget unanimously on June 22.
A closer look

Revenue growth jumped a bit after the budget compromise between Gov. Arnold Schwarzenegger and the state Legislature. Portola Valley's general fund will be richer by about $76,500, its share in the state's repayment of a 2003 loan of vehicle license fee revenues from cities, towns and counties, according to figures prepared by the State Controller's Office.

Portola Valley plans significant spending increases in key areas. A total of $346,000 is budgeted for police services from the San Mateo County Sheriff's Office, a 10 percent increase; $164,000 for staff retirement funds, a 20 percent increase; and $100,500 for health-care costs, a 14 percent increase.

The budget also lists $35,000 for improvements to Triangle Park at the intersection of Portola and Alpine roads. This state grant will pay for new sod and benches; groundbreaking is likely in November, said Public Works Director Howard Young.

The town will also get five new storm drains at $10,000 each.
Town Center spending

Over the coming 12 months, the budget shows spending on the Town Center project of $16,000 for sewer design, $15,000 for soil studies, and $500,000 to prepare design and construction documents.

Groundbreaking is planned for September 2006, with a grand opening anticipated about 16 months later.

Of the estimated $20 million needed for the project, the town has just $4.5 million set aside. To bridge the gap, a fundraising campaign for private donations has begun by the nonprofit Portola Valley Community Fund.

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