Portola Valley council explains utility tax Portola Valley council explains utility tax (October 19, 2005)

There is a great deal of misinformation circulating in Portola Valley about the renewal of the Utility User Tax (Measure H) and the Town Center plan. We hope this letter will answer some questions you may have about these two unrelated issues.

We, who are the current members of, or candidates for, your Town Council, agree that: 1. We have no intention or plan to use the utility user tax revenues for any purpose other than to fund general operating expenses of the town's annual budget. 2. We have no intention or plan to begin a Town Center construction project until we have identified sufficient funds to finish the job and have clearly described these sources to the public. We are currently developing designs only, in order that the town's residents can see what they will be getting before we seek donations or, if necessary a bond issue. 3. We will only build the Town Center that a consensus of town residents wants, and that we can afford. We are asking for your help in trying to identify what the town wants and can afford. All of these statements are true and indeed have always been true. Many were considered to be givens, and therefore may not have been clearly expressed.

The renewal of the utility user tax is being sought to keep our operating budget balanced. That's it. If revenues from the tax exceed operating needs, the Town Council will happily reduce the tax rate.

We are proposing to use a substantial portion of our general fund reserves to help fund the new Town Center project. These reserves represent money the town has slowly accumulated over 40 years for a "rainy day." In our judgment, the imminent loss of our old Town Center facilities due to loss of insurance coverage, advancing age and earthquake risk, represents just such a "rainy day," and this is an appropriate use of a portion of these reserves.

Please help us work out the appropriate "Portola Valley" solution by getting involved in our new Town Center project. Thank you.

Your current and future voluntary Town Council members: George Comstock, Edward Davis, Ted Driscoll, Richard Merk, Steve Toben , Maryann Moise Derwin and Sally Ann Reiss

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