Town of Portola Valley
Mid-Year Budget Update
February 11, 2026
Overview
• Beginning GF Reserve
• FY 24-25 Results
• FY 25-26 6 Months Results
• Y2Y Comp Analysis
• MY Budget Overview
• Fiscal Forecast
FY 25-26
Budget
Beginning Fund Balance
FY 24-25 Preliminary Results
FY 25-26 6-month Results
Y2Y Comparative Analysis
Mid-Year Budget Overview
Fiscal Forecast
Beginning
Fund Balance
Estimated Proposed - $2.2M
•Reclassification of Sheriff expenses
•Corrections of payroll journal entries
Audits, Corrections, Reclassifications
Increased $705K
FY 24
-25
Preliminary
Results • Balanced Budget • Revenues - $7.96M +6.4% • Expenses - $7.88M +5.4% • $80K Surplus Category Budget Actuals
$%
Property Taxes 4,231,055 4,313,015 81,960 101.94%
Sales & Use Tax 350,000 344,247 (5,753) 98.36%
Utility Users Tax 945,000 1,244,927 299,927 131.74%
Business License Tax 125,000 133,188 8,188 106.55%
Franchise Fees 405,000 414,711 9,711 102.40%
Fines & Forfeitures 2,000 3,478 1,478 173.89%
Licenses & Permits 292,900 210,363 (82,537) 71.82%
Intergovernmental 5,500 13,779 8,279 250.53%
Charges for Services 835,200 895,378 60,178 107.21%
Use of Money & Property 284,530 348,264 63,734 122.40%
Miscellaneous 3,600 38,962 35,362 1082.28%
Transfers In - -
- 0.00%
Total 7,479,785 7,960,312 480,527 106.42%
Category Budget Actuals
$%
Salaries 2,208,513 2,272,139 63,626 102.88%
Benefits 801,193 790,120 (11,073) 98.62%
Services 755,091 939,992 184,901 124.49%
Maintenance 335,600 475,736 140,136 141.76%
Contract 2,474,650 2,422,018 (52,632) 97.87%
Consultants 716,000 947,734 231,734 132.37%
Development 55,047 33,037 (22,010) 60.02%
Transfers Out 133,691 - (133,691) 0.00%
Total 7,479,785 7,880,777 400,992 105.36%
Surplus / (Deficit) - 79,536
FY 25-26
6-Month Results
• Adopted $215K Deficit
• Revenues - $3.57M 45%
• Expenses - $3.64M 45%
• $70K Deficit
Category Budget Actuals $ %
Property Taxes 4,355,875 2,096,776 (2,259,099) 48.14%
Sales & Use Tax 325,000 124,116 (200,884) 38.19%
Utility Users Tax 1,173,000 499,952 (673,048) 42.62%
Business License Tax 115,000 49,648 (65,352) 43.17%
Franchise Fees 424,000 81,165 (342,835) 19.14%
Fines & Forfeitures 2,500 9,026 6,526 361.05%
Licenses & Permits 322,500 155,904 (166,596) 48.34%
Intergovernmental 7,500 - (7,500) 0.00%
Charges for Services 885,200 379,506 (505,694) 42.87%
Use of Money & Property 337,000 170,993 (166,007) 50.74% Miscellaneous 5,200 3,050 (2,150) 58.66%
Transfers In - - - 0.00%
Total 7,952,775 3,570,136 (4,382,639) 44.89%
Category Budget Actuals $ %
Salaries 2,316,850 1,167,619 (1,149,231) 50.40%
Benefits 981,978 406,983 (574,995) 41.45%
Services 799,777 457,033 (342,744) 57.15%
Maintenance 353,500 136,111 (217,389) 38.50%
Contract 2,740,054 1,174,476 (1,565,578) 42.86%
Consultants 772,000 268,432 (503,568) 34.77%
Development 63,700 29,387 (34,313) 46.13%
Transfers Out 140,000 - (140,000) 0.00%
Total 8,167,859 3,640,042 (4,527,817) 44.57%
Surplus / (Deficit) (215,084) (69,906)
Y2Y Comparative
Analysis • Revenues - +62K +1.8% • VLF Shortfall -$218K • Licenses & Permits • Expenses - -235K -6.1% • Consultants -19.14% • Vacant Positions • Senior Planner • Development Review Tech • Services provided through consultants • Accrued Expenses • Sheriff - $959K Category FY 25 FY 26
$%
Property Taxes 2,167,327 2,096,776 (70,551) -3.26%
Sales & Use Tax 100,868 124,116 23,249 23.05%
Utility Users Tax 492,298 499,952 7,654 1.55%
Business License Tax 41,206 49,648 8,442 20.49%
Franchise Fees 66,925 81,165 14,240 21.28%
Fines & Forfeitures 790 9,026 8,236 1042.29%
Licenses & Permits 80,644 155,904 75,260 93.32%
Intergovernmental - -
- 0.00%
Charges for Services 409,744 379,506 (30,238) -7.38%
Use of Money & Property 143,214 170,993 27,778 19.40%
Miscellaneous 4,962 3,051 (1,911) -38.52%
Transfers In - - - 0.00%
Total 3,507,978 3,570,136 62,158 1.77%
Category FY 25 FY 26$
%
Salaries 1,298,598 1,167,619 (130,978) -10.09%
Benefits 391,605 406,983 15,378 3.93%
Services 505,209 457,033 (48,176) -9.54%
Maintenance 161,788 136,111 (25,677) -15.87%
Contract 1,163,440 1,174,476 11,036 0.95%
Consultants 331,967 268,432 (63,534) -19.14%
Development 22,897 29,387 6,490 28.35%
Transfers Out -
- - 0.00%
Total 3,875,503 3,640,042 (235,461) -6.08%
Surplus / (Deficit) (367,525) (69,906)
Mid-Year Budget
Overview
• GF Deficit - -$215K
• Post Adoption
• Sheriff contract reduced – ($172K)
• VLF Shortfall lawsuit
• Revenue Enhancement
• Campaign, materials
• Town Attorney
• Open Space
• Housing Element
• Revenue Enhancement
• Valley Oak Trail Bridges
• Building & Planning
• Implement Permitting/GIS
• Staffing vacancies/consultants
• Safety Element
Fund Beginning Estimated Estimated Transfers Ending
Balance Revenues Expenditures In/(Out) Balance
General Purpose Funds
101 - Unassigned $ 1,106,643 $ 7,952,775 $ 8,027,859 $ 75,084 $ 1,106,643 Assigned
UAL 249,214 - - - 249,214
Equipment Replacement 34,960 - - - 34,960
Capital Replacement/Emergency 489,447 - - - 489,447
Legal Contingency 34,960 - - - 34,960
OPEB Liability 291,875 - - (215,084) 76,791
Sub-total $ 2,207,099 $ 7,952,775 $ 8,027,859 $ (140,000) $ 1,992,015 Restricted Funds
201 - Grants $ 401,995 $ 254,973 $ 234,973 $ - $ 421,995 202 - Public Safety Sales Tax 61,381 17,100 16,500 - 61,981 203 - Public Safety/COPS 470,548 166,600 155,000 - 482,148 204 - Open Space 9,118,958 819,000 15,000 - 9,922,958
205 - Library Fund 124,851 78,000 78,000 - 124,851
206 - Gas Tax/RMRA 445,158 267,814 364,767 140,000 488,205 208 - Frog Pond Open Space 28,903 1,300 - - 30,203
211 - Measure A 1,397,512 421,630 421,130 - 1,398,012
212 - Measure M 106,408 78,000 75,000 - 109,408
213 - Measure W 785,912 204,745 150,000 - 840,657
221 - Park In-lieu 45,454 1,200 30,000 - 16,654
222 - Inclusionary In-lieu 4,849,927 135,000 115,000 - 4,869,927 225 - ARPA 165,534 - 100,000 - 65,534
401 - Capital Projects 691,120 - 302,366 - 388,754
701 - Applicant Deposits 112,430 475,000 475,000 - 112,430 Sub-total $ 18,806,091 $ 2,920,362 $ 2,532,736 $ 140,000 $ 19,333,717 Fiduciary Funds
501 - Crescent Road Maintenance District $ 205,202 $ 23,756 $ - $ - $ - 502 - Portola Valley Ranch Road Maintenance District 40,556 2,295 - - - 504 - Wayside II Road Maintenance District 161,573 46,596 - - - 505 - Woodside Highlands Road Maintenance District 375,126 69,997 50,097 - - Sub-total $ 782,457 $ 142,644 $ 50,097 $ - $ -
Grand Total $ 21,795,647 $ 11,015,781 $ 10,610,692 $ - $ 21,325,732 FY 2025-26
Operational Needs
Revenue
Enhancement
• Campaign
Education
• Campaign
Materials
• Legal Review
Building &
Planning
• Permitting
Software
• GIS Upgrade
• Town
Geologist
• Staff
Vacancies
Housing
Element
• Consultants
• Legal Review
Open Space
• Appraisal
Services
• Legal Review
Mid-Year Budget
Overview
• General Fund - 101
• Revenues
• No change
• Expenses - $48K increase
• Sheriff’s Contract -$172K
• Town Manager +$54K
• Revenue Enhancement
• Town Attorney +$50K
• Revenue Enhancement
• Building & Planning +$112K
• Permitting Software
• GIS upgrades
• Staff Vacancies
• Safety Element
• Town Geologist
• Risk Management
• SIR
Revenue Expense Variance
Adopted Budget 7,952,775 8,167,861 (215,086)
Changes in Appropriation
115 - Town Committees - 1,300 (1,300)
120 - Town Manager - 53,887 (53,887)
125 - Town Attorney - 50,000 (50,000)
130 - Town Clerk - (22,639) 22,639
140 - Finance - 8,988 (8,988)
210 - Police Services - (171,735) 171,735
310 - Planning Division - 32,366 (32,366)
320 - Building Division - 75,998 (75,998)
330 - Code Enforcement - 3,939 (3,939)
410 - Community Hall - 1,041 (1,041)
420 - Field Rentals - 700 (700)
510 - Public Works 12,518 (12,518)
610 - Non-Departmental - 71,573 (71,573)
610 - Transfers - (70,000) 70,000
Total Changes in Appropriation - 47,936 (47,936)
Mid-Year Budget 7,952,775 8,215,797 (263,022)
Schedule of Changes in Appropriation - General Fund
Mid-Year Budget
Overview
Category Prelim Proposed $ %
Property Taxes 4,355,875 4,355,875 - 0.00%
Sales & Use Tax 325,000 325,000 - 0.00%
Utility Users Tax 1,173,000 1,173,000 - 0.00%
Business License Tax 115,000 115,000 - 0.00%
Franchise Fees 424,000 424,000 - 0.00%
Fines & Forfeitures 2,500 2,500 - 0.00%
Licenses & Permits 322,500 322,500 - 0.00%
Intergovernmental 7,500 7,500 - 0.00%
Charges for Services 885,200 885,200 - 0.00%
Use of Money & Property 337,000 337,000 - 0.00%
Miscellaneous 5,200 5,200 - 0.00%
Transfers In - - - 0.00%
Total 7,952,775 7,952,775 - 0.00%
Category Prelim Proposed $ %
Salaries 2,316,850 2,322,020 5,170 0.22%
Benefits 981,978 972,906 (9,072) -0.92%
Services 854,777 1,047,837 193,060 22.59%
Maintenance 228,500 228,500 - 0.00%
Contract 2,740,054 2,560,832 (179,222) -6.54%
Consultants 842,000 940,000 98,000 11.64%
Development 63,700 73,700 10,000 15.70%
Transfers Out 140,000 70,000 (70,000) -50.00%
Total 8,167,859 8,215,795 47,936 0.59%
Surplus / (Deficit) (215,084) (263,020)
• General Fund - 101
• Revenues
• No change
• Expenses - $48K increase
• Sheriff’s Contract -$172K
• Town Manager +$54K
• Revenue Enhancement
• Town Attorney +$50K
• Revenue Enhancement
• Building & Planning +$112K
• Permitting Software
• GIS upgrades
• Staff Vacancies
• Safety Element
• Town Geologist
• Risk Management
• SIR
Mid-Year Budget
Overview
• Open Space - 204
• Revenues
• No Change
• Expenses +$10K
• Survey
• Legal Review
Mid-Year Budget
Overview
• Inclusion In-lieu - 222
• Revenues +$111K
• Use of Reserves
• Expenses +$111K
• Consultants
• Urban Planners
• Good City
• Human Investment Project
(HIP)
• HEART JPA
• Legal Review
Capital Improvement Plan
Storm Drain
Assessment
• Initial quotes
exceed budget
will defer to FY
26-27
Valley Oak Trail
Bridges
• Scope revision
will require
survey and
legal review
• Rellocated
from Storm
Drain
Assessment
Project
Court
Resurfacing
• Scope revision
may require
park in-lieu
funds or
donations
through PV
Fund
Ford Field
Bathroom
• Feasibility
Study to
determine
cost funded by
Capital Project
fund
appropriation
Mid-Year Budget
Overview
• Grants - 201
• Revenues -$71K
• Valley Oak Trail Bridges
• Expenses -$71K
• Valley Oak Trail Bridges
• Scope increase
• Survey requirement
• GF CIP Fund
Mid-Year Budget
Overview
• Park In-lieu - 221
• Revenues +$5K
• Use of Reserves
• Expenses
• Council Direction
• Ford Field Bathroom - $50K
• Feasibility Study
• Town Courts Resurfacing - $35K
Mid-Year Budget
Overview
• GF Capital Projects - 401
• Revenues
• No Change
• Expenses
• Storm Drain Assessment
• Deferred – quotes exceeded
budget
• Valley Oak Trail Bridges
• Survey
• Legal Review
• Council Direction
• Ford Field Bathroom - $50K
• Feasibility Study
• Town Courts Resurfacing - $35K
Mid-Year
Budget
Overview
Changes in All Funds
Revenues Expenses Variance
Adopted Budget 11,020,781 10,750,694 270,087
Changes in Appropriation
101 - General Fund - 47,934 (47,934)
201 - Grants (70,973) (70,973) -
204 - Open Space - 10,000 (10,000)
206 - Gas Tax (70,000) - (70,000)
221 - Park In-lieu - 5,000 (5,000)
222 - inclusion In-lieu 230,000 130,900 99,100
501-505 - RMD 30,656 123,203 (92,547)
701 - Customer Deposits 425,000 425,000 -
Total Changes in Appropriation 544,683 671,064 (126,381) Mid-Year Budget 11,565,464 11,421,758 143,706
Schedule of Changes in Appropriation for Mid-Year
Mid-Year Budget
Overview
Fund Beginning Estimated Estimated Transfers Ending
Balance Revenues Expenditures In/(Out) Balance
General Purpose Funds
101 - Unassigned $ 1,106,643 $ 7,952,775 $ 8,145,795 $ (70,000) $ 843,623 Assigned
UAL 249,214 - - - 249,214
Equipment Replacement 100,000 - - - 100,000
Capital Replacement/Emergency 1,000,000 - - - 1,000,000 Legal Contingency 100,000 - - - 100,000
OPEB Liability 356,057 - - - 356,057
Sub-total $ 2,911,914 $ 7,952,775 $ 8,145,795 $ (70,000) $ 2,648,894 Restricted Funds
201 - Grants $ 401,995 $ 164,000 $ 164,000 $ - $ 401,995 202 - Public Safety Sales Tax 61,381 17,100 16,500 - 61,981 203 - Public Safety/COPS 470,548 166,600 155,000 - 482,148 204 - Open Space 9,118,958 819,000 35,000 - 9,902,958
205 - Library Fund 124,851 78,000 78,000 - 124,851
206 - Gas Tax/RMRA 445,158 267,814 364,767 70,000 418,205 208 - Frog Pond Open Space 28,903 1,300 - - 30,203
211 - Measure A 1,397,512 421,630 421,130 - 1,398,012
212 - Measure M 106,408 78,000 75,000 - 109,408
213 - Measure W 785,912 204,745 150,000 - 840,657
221 - Park In-lieu 45,454 1,200 35,000 - 11,654
222 - Inclusionary In-lieu 4,849,927 230,000 245,900 - 4,834,027 225 - ARPA 100,000 - 100,000 - -
401 - Capital Projects 691,120 - 302,366 - 388,754
701 - Applicant Deposits - 900,000 900,000 - -
Sub-total $ 18,628,127 $ 3,349,389 $ 3,042,663 $ 70,000 $ 19,004,853 Fiduciary Funds
501 - Crescent Road Maintenance District $ - $ 24,000 $ 24,000 $ - $ - 502 - Portola Valley Ranch Road Maintenance District - 2,300 2,300 - - 504 - Wayside II Road Maintenance District - 47,000 47,000 - - 505 - Woodside Highlands Road Maintenance District - 100,000 100,000 - - Sub-total $ - $ 173,300 $ 173,300 $ - $ -
Grand Total $ 21,540,041 $ 11,475,464 $ 11,361,758 $ - $ 21,653,747 FY 2025-26
Mid-Year
Budget
Overview
Fiscal Forecast
FY 2026-27 Budget
Sheriff Contract
• Initial increase
anticipated to
be $400 -
$500K with
the expiration
of credits
• Labor
Negotiations
Personnel
• COLA?
• Benefits
• PERS – 1%
• UAL - $30K
• Medical –
9%
CIP
• Ongoing
funding for
Capital
Improvement
Projects
Revenue
Enhancement
• Contingency
planning
should
revenue
measure not
pass
Mid
-Year
Budget
Update
1. Provide
Direction
• Ford Field
Bathroom
• Town Courts
Resurfacing
2. Adopt
Resolution
Questions