Portola Valley School District: back on track Portola Valley School District: back on track (July 14, 2004)

** A 6-percent increase in property-tax growth, a new parcel tax, and a boost in foundation funding bring stability.

By Marjorie Mader
Almanac Staff Writer

Portola Valley School District starts the 2004-05 year on a stable footing with the adoption of an $8.6-million budget that rolls forward school programs and includes raises for all staff.

"We're back in a more positive position" than the past year, said Tim Hanretty, the district's business manager. This year the district projects a 6 percent increase in property-tax growth.

"We're returning to the historic levels of property-tax growth," he said, noting that property tax revenue represents 64 percent of the district's revenue." Less than 1 percent of the total district revenues comes from state aid.

Passage of a new $290 annual parcel-tax last March will generate approximately $670,000 annually for 10 years to help stabilize funding.

Mr. Hanretty cited as significant the heightened level of cooperation with the Portola Valley Schools Foundation in long-term financial planning.

Contributions from the Portola Valley Schools Foundation total more than $1 million, including funds from the stepped-up annual campaign, the Gala fundraiser, the 21st Century (capital) fund, and proceeds from e-Scrip to fund teacher "wish lists."

This budged, adopted by trustees during their June 23 meeting, is the product of months of research, school finance sessions for the public, and input from staff, parents and community members. It is identical to the preliminary budget presented June 8.

The $8.6 million budget reflects a 7.2-percent increase in revenue, approximately $576,401 over 2003-04 revenue.

About 89 percent of the district's revenue comes from local sources: 64 percent from property taxes; 12 percent from Portola Valley Schools Foundation grants; and 13 percent from other local sources -- parcel taxes, field-use fees, and reimbursements from other districts for services.

People costs -- salaries and benefits for employees -- represent 85 percent of all general fund operating expenses and total $7.27 million. Books and supplies represent 4 percent, approximately $380,000. What's called "services and other" -- reflecting adjustments during the previous year and elimination of one-time line items -- represent 10 percent of the expenses, about $900,000.

Capital outlay is less then 1 percent of the operating budget, or $18,000.

By putting aside $343,000, the district meets the state's 4-percent reserve requirement for economic uncertainties. The district's reserves amount to $1.5 million.

The adopted budget is available at the district office at Corte Madera School, 4575 Alpine Road.

E-mail Marjorie Mader at mmader@AlmanacNews.com

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