FY 2024
-25
June 12, 2024 Preliminary Budget
Overview
• Budget Approach
• What's included
• What's not included
• Strategies for the Path Forward
• Questions and Comments
Budget Approach
Align with Council Goals
Conservative Revenues and Realistic Expenses
Recruit and Fill vacant positions
Provide Stability
Restore Integrity of Finances
Budget Assumptions
What’s included:
• 20 FTE’s – no increase
• CIP Projects
• User Fee Study / Nexus
Study
• General Election Costs
• Committee Budgets same as
prior year
• Sustainability Grant (75K,
40K for staffing)
What’s not:
• ARPA funds spent
• Incorrect revenue assumptions
• Costs for Revenue Enhancement
Studies
• Enhanced Security / Cameras
• Special Election Costs
• Changes to Reserves
• Unfunded / wish list
Council Priorities (thru FY 2024-25)
• Safety
o Take action on the evacuation plan • Complete the safety element • Conduct an assessment of the Emergency Operations Center • Update the Emergency Operations Plan • Examine the role of the volunteer Police Commissioner • Explore options to augment services to the public •Re-establish regular Town Council safety meetings • Enhance community understanding of crime statistics and related Town activity • Implement home hardening requirements
• Responsible Land Use
o Begin implementation of the post adoption plan for the Housing Element • Develop guidelines for an opt-in program • Implementation of ADU/JADU support program • Align zoning regulations with the Adopted Housing Element • Develop and implement an open space preservation plan
• Organizational Efficiency and Effectiveness
o Fill vacancies • Establish customer service metrics • Promote transparency through enhanced communication • Update the committee and commission handbook • Cultivate a high performing team
• Environmental Sustainability
o Develop climate action plan • Implement reach codes • Advocate for sustainability efforts at the state level
Town Finances
• $12M Agency ($8M General Fund)
• 20 FTEs plus consulting
• Structural Deficit of $1.2M for FY 2023-24
• Structural Deficit of $1.9M for FY 2024-25
• Approved to use $868K of Reserves this year
• $1M+ projected Reserves needed for next year
• Sheriff's contract increase ($852K total)
oFY 2024-25 – $425K increase
oFY 2025-26 – $650K increase
oFY 2026-27 – $852K+ full increase
Town Manager / Staff Actions
• Agency Re-Org
• Planning and Building in progress
• Public Works
• Customer support staff (technicians)
• Changed functions
• Increase Investments Earnings
• Changed benefit structure for retirement plans
• Reduced Legal fees
• Holding position Assistant Director of Planning and Building • Started analysis of Consultant fees
• Corrected and Adjusted Revenues (Planning and Building Cost Recovery, Prop Tax) Actuals vs Budget
Current Fiscal Year (FY 2023-24) vs FY 2024-25
• Salaries (excluding benefits) Budget $2.55M
oProjected $2.2M
oPrelim Budget $2.7M
• Legal Fees Budget $180K
oProjected $430K at Fiscal Year End
oPrelim Budget $245K
• Consultants Budget $620K
oProjected $550K at Fiscal Year End
oPrelim Budget $620K
• Other categories within budget
• ARPA Funds Expired
CIP Projects
• Storm Drain Repairs 15K
• Trail Rehab 20K
• Parking and Safety (Portola Rd) 20K
• Street Resurfacing 167K (GF)
• Construction Inspection and Testing 70K
• Town Hall Boiler 25K
• Used Vehicle 35K
• Town Center Infrastructure Improvements 100K
• IT Upgrades (Schoolhouse and Town Hall) 25K
• Sheriff ’s Substation (hold-continue to explore options) 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
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
• Fund Balance Analysis
• 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
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
Recommendations
• Adopt Preliminary Budget with a September Revision
• Begin User Fee Study / Nexus Study
• Continued Engagement w/ Finance Committee
oRevenue Enhancement Measures
oRe-organization of Reserves
oOther recommendations
• Explore Fiscal Emergency (TBD)
Discussion and Questions
Next Steps:
• Hold on CIP wherever feasible
• Minimize spending where possible
• Updated Org chart and service model discussion
• Create / Update Planning and Building Model
• Continue Finance committee meetings
• Periodic Updates
PVThrive
Sharif Etman
Town Manager