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In preparation for its 2025-26 proposed budget, the Portola Valley Town Council reviewed how it would allocate funds to town committees, nonprofit organizations and the town’s general fund. As the town navigates a financial crisis, council members called for committees to cut down on costs in a recent Town Council meeting.
According to Finance Director Tony McFarlane, the town’s general fund reserve for 2025-26 will be $2.1 million. The projected surplus from the 2024-25 fiscal year is about $200,000, he said.
The preliminary budget presentation showed that the projected revenue for the next fiscal year will be about $8 million and be balanced by $8 million in expenses. The projected reserve for the end of the next fiscal year is $1.96 million, McFarlane said.
With this budget, the town will continue to face challenges. Officials say residents with business at Town Hall will deal with shortened service hours and delays in permits, building inspections, website updates and more. He added that difficulties with staff recruitment and retention will also persist as the town relies on consultants and contractors.
Despite these ongoing challenges, Portola Valley recently welcomed two permanent staff members — Town Engineer Robert Burr and Town Clerk Veronica Dao.
The presentation chart displayed an upward trend in revenue by 2027-28. McFarlane explained however that from the 2026-27 through 2029-30 budget, the town will need to make an additional $2 million in cuts to maintain a balanced budget. Another option is to raise revenue. The options of becoming a charter town, imposing a parcel tax and relocating open space user utility taxes to the general fund are still in consideration to increase town revenue.
Committee budget
For the next fiscal year, the committees’ budget amounted to $44,360. This is significantly less than over the last four years, said Finance Director Tony McFarlane.
This is due to a major reduction in costs from the cultural arts committee. This year, the Cultural Arts Committee has separated itself from the annual PV Palooza and Summer Concerts that are now operated under the nonprofit organization, PV Palooza Foundation. Both of these events would have added an additional $14,000 to the committee’s budget.
The Cultural Arts Committee is asking, however, that the town allocate about $3,000 to be used on other events.
Among all committees, Parks and Recreation budgeted the highest amount with a total of $25,000. The budget includes expenses for the Zotts for Tots race and community picnics that include petting zoos and face-painting. The second highest budget came from the Trails and Paths Committee with a total of $10,000 with the majority of expenses allocated for the Horse Fair.
Council member Rebecca Flynn noticed the increased costs budgeted for the Horse Fair event. While it is well attended every year, she suggested the budget be cut.
“We’re looking at a $150,000 potential deficit for next year… I have to be very mindful of the consequences that our budget is still constrained, our service levels are less than optimal and our staff is tight,” said Flynn.
Council member Craig Taylor recommended that the budget be reviewed by the committees again to see where costs can be cut down and how they can save the town money.
“The message needs to get out that the town doesn’t have a ton of money and some of these budgets are higher than they were last year,” Flynn added.
Council member Mary Hufty suggested using the newly founded nonprofit Portola Valley Fund to underpin committee projects that the town cannot afford. However, Mayor Judith Hasko warned that PV Fund is still working on logistics and this might not be the best time to request its services.
Council member Helen Wolter asked to approve the funding for the town committees’ requests but at the limited amount of $44,000 in addition to asking all committees to tighten their budgets. All council members voted in favor to approve the budget except for Hasko.
Nonprofit funding requests
The town also reviewed nonprofit funding requests from organizations that provide services to Portola Valley and neighboring cities across the Peninsula. The proposed budget for nonprofit funding was $25,000, but McFarlane recommended about $18,000.
The nonprofit organizations include Emergency Preparedness in Communities, Human Investment Project Housing, Meals on Wheels and Sustainable San Mateo County.
“Although these nonprofits do tremendous work throughout the county, I feel that we need to keep our money within the town first,” said McFarlane.
The town will continue to discuss the 2025-26 budget in a future meeting.
