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The town of Portola Valley is preparing to pursue revenue enhancement options to mitigate long term financial concerns amid a conservative budget process. During a Town Council discussion on July 23, council members showed divided support on various options as they provided guidance to town staff and committee members.
Many of the town’s options will require a ballot measure that will be up to the community’s vote in November 2026. Ballot measures will be due to San Mateo County in August 2026, leaving the town about a year to coordinate, research and draft potential ballot initiatives.
The Finance Committee prepared a comprehensive chart for the council to review with nine revenue options. These include making no changes to the town’s tax policy, a parcel tax, becoming a charter city, annexing Ladera’s commercial area, annexing Ladera’s commercial and residential area, combining with Woodside, unincorporating, becoming a special district and modifying the town’s utility users’ tax.
Among the council, the majority expressed interest in pursuing a parcel tax, becoming a charter city and modifying the existing utility users tax. While council members shared uncertainty as to whether the annexation of Ladera would benefit the town and the unincorporated community, they proposed collaborating with its neighboring town of Woodside on shared expenses.
The revenue methods are anticipated to bring in about $1.5 million to be used to cover cost increases and provide more funding for capital improvements projects and hiring more staff, according to Finance Director Anthony McFarlane.
The town can expect a $568 annual per parcel tax on about 1,700 parcels across town. The Finance Committee estimated that this will bring about $1 million in revenue. However, this will only be imposed if it passes with a two-thirds majority during the election. The committee notes that the need for a “supermajority voter requirement adds uncertainty.”
Council member Rebecca Flynn recommended that the town pursue multiple revenue options, explaining that it would be difficult to rely on one method.
Vice Mayor Craig Taylor warned that layering different revenue options might be a “recipe for failure.” He added that pursuing multiple taxes to increase revenue might not be successful in generating the amount that is expected, especially with the uncertainty that all measures will pass.
Taylor also pointed out that if the town were to unincorporate and cease being a town or to become a special district, it would cause Portola Valley to lose its general plan, which he describes as the heart of what makes the town unique.
He shared his interest in further research on the parcel tax, becoming a charter city, modifying the utility users tax and looking into other benefits of annexing Ladera.
According to the committee, annexing Ladera would expand the boundaries of Portola Valley where the town can increase sales and real estate taxes from Ladera’s commercial and residential districts. The committee noted that this might increase other service costs including the town’s contract with the San Mateo County Sheriff’s Office — one of the biggest expenses on the town’s budget.
Town resident Karen Askey proposed that the town install parking meters as another stream of revenue, which Mayor Judith Hasko showed support in.
Following her fellow council members, Hasko joined in support of prioritizing efforts to become a charter city and modifying the utility users’ tax. While exploring different ways to increase revenue, she emphasized that her personal priorities are in maintaining public trust, financial integrity and transparency for Portola Valley residents.
