State of the Town and
April 24, 2024 Financial Outlook
Town Manager Immediate Focus
Get our house in order
Finance Catch-Up
Recruit and Fill vacant positions
Provide stability
Align / Implement Town Council Priorities
RESET – REFOCUS - RESTRUCTURE
Town Hall Status Update
• Completed PV Refresh
• Audit Catch up
• Completed FY 2020-21 Audit
• Currently auditing FY 2021-22
• FY 2022-23 Audit to be scheduled
• Finalizing Restructure of Staff
• Hired Planning and Building Director
• Hiring Finance Director
• Implementing items on Krisch assessment list (red, yellow, green) Town Finances
• $12M Agency ($8M General Fund)
• 20 FTEs plus consulting staff
• Structural Deficit of $868K for FY 2023-24
• Approved to use $868K of Reserves
• Sheriff's contract increase ($850K per fiscal year)
o FY 2023-24 – $425K increase
oFY 2024-25 – $425K increase
o FY 2025-26 – $650K increase
o FY 2026-27 – $850K+ full increase
Budget vs. Actual (at-a-glance)
Current Fiscal Year (FY 2023-24)
• Salaries (excluding benefits) Budget $2.55M
oProjected $2.2M
• Legal Fees Budget $180K
oProjected $430K at Fiscal Year End
• Consultants Budget $620K
o Projected $450K at Fiscal Year End
• Other categories within budget
Structural
Deficit
• Increased Costs Year over Year
• Increase in Sheriff's Contract
• Increased Legal Fees
• Stagnant or Reduction in
Revenue
FY 2020-21 (Surplus) $41K Revenue over Expenses
FY 2021-22 (Surplus) $104K Revenue over Expenses
FY 2022-23 (Deficit) ($424K) Revenue under Expenses
FY 2023-24 (Projected Deficit) ($868K) Revenue under Expenses Town
Reserves
Reorganization of
Reserves
• Recommendation from Finance Committee and
Staff
• Annual Analysis at Year End Close / Mid-Year
Report
• Council to assign the unassigned Fund Balance /
Surplus
• Annual Review of Reserves and Policy
RESET
REFOCUS
RESTRUCTURE
UNINCORPORATED
SAN MATEO COUNTY
PV REFRESH
FY 2023-24 FY 2024-25 FY 2025-26
+Legal +675K
Sheriff
Land
Sale?
-300K
Property
Tax
Parcel
Tax?
Charter
Town? Annex?
REVENUE
EXPENSES
SPECIAL
ELECTION
-300K
Property
Tax
+450K
Sheriff
+450K
Sheriff
PV THRIVE
(SUSTAINABLE FISCAL
MODEL)
+Legal
?
+Consulting
+Consulting?
ROADMAP TO PV THRIVE
User
Fee
Study
Reset – Refocus - Restructure
• Town Hall closure mid-day for training and reset
(Nov. 2023)
• Evaluated all positions within Town
• Began evaluation of consultant use and legal fees
• Ensuring right people in the right spots
• Decrease reliance on consultant use
• Changed benefit structure for staff
• All changes to be completed by June 30
• 20 Full Time Equivalent Employees (no change)
Three Year
Outlook
• Need to use utilize reserves
• A budget is only part of a
plan
• Mid-Year reviews and third
quarter reports are key
• Through multiple
strategies – turn deficit into
surplus
Portola Valley
Thrive
• Three Year Initiative
• Council, Community and Staff
Initiative
• Create and ongoing, sustainable
fiscal model
• Review of all expenditures
• Introduce revenue enhancement
strategies
• Ensure funding for proper staff
and support to implement Council
Priorities
Finance Committee
and Workgroups
• Three Year Plan /Inititiative
• Assist to create ongoing, sustainable fiscal
model
• Work in tandem with Staff
• Evaluate ideas for revenue generation
• Recommend financial policy changes
• Make recommendations to Council
Possible Revenue
Generation Measures
• User Fee Study / Full Nexus Study
• UUT Tax increase / change
• Parcel Tax
• Annexation
• Land Sale
• Charter Town (vs. General Law)
• Impact Fees PVThrive
Council Priorities (thru FY 2024-25)
• Fiscal Responsibility and Long-Term Viability
• Safety
• Responsible Land Use
• Organizational Efficiency and Effectiveness
• Environmental Sustainability
Existing Priorities vs Wants
• What we have vs. what we want
• Create unfunded / wish list
• Move items accordingly on the list
• Additional services / projects need additional funding (AND maintenance)
Recommendations
• Create Action Plan and initial estimates (time and cost) • Budget Presentation in June with a September Revision • Begin User Fee Study
• Engage Finance Committee
oRevenue Enhancement Measures
oRe-organization of Reserves
oOther recommendations
• Create focused subcommittees
and workgroups
Discussion and Questions
PVThrive
Sharif Etman
Town Manager