T O W N O F P O R T O L A V A L L E Y
Proposed Town Charter
Public Hearing #1 | May 13, 2026
Darcy Smith, Town Manager
Catherine Engberg, Town Attorney
B A C K G R O U N D
Town Council Priority and Work Items
Council’s Top Priority: Financial Responsibility and Long-Term Viability Priority Tasks Completed and Underway:
• Educate the community on Town finances
• Complete the backlog of financial audits
• Implement financial consultant best
practices recommendations
• Conduct a user fee study
• Develop and implement infrastructure to
improve operational efficiency and
effectiveness
• Evaluate options including additional
locally controlled funding to address the
Town’s structural deficit
B A C K G R O U N D : T H E F I S C A L C H A L L E N G E Town Budget Forecast – The Black Line
~$700K/yr
Ongoing structural
deficit
FY 2027-28
Reserves fall below
20% minimum
FY 2029-30
Reserves fully
depleted
C O M M U N I T Y V O I C E
Community Feedback
The Portola Valley Conversation community survey (September 2025) identified three core resident priorities:
Disaster Preparedness
Residents want preparedness for wildfires, earthquakes, and flooding — including prevention measures, evacuation planning, and reliable emergency communications.
Protect Town Autonomy
Residents do not want zoning and planning decisions made by the County. Remaining incorporated preserves local decision-making authority.
Long-Term Fiscal Stability
Residents want to ensure that the Town can continue delivering services at current levels without depleting reserves or cutting Town services programs.
60% of Portola Valley registered voters are highly interested in the Charter approach (September 2025 Survey)
U N D E R S T A N D I N G T H E C H A R T E R
General Law Town vs. Charter Town
GENERAL LAW TOWN (current)
Must follow all California state law, even on
municipal affairs
Limited authority over municipal affairs
Shares Documentary Transfer Tax with
County (55¢ per $1,000)
Cannot adopt a Real Property Transfer Tax
State Legislature controls many local
decisions
CHARTER TOWN (proposed)
Local control over defined municipal affairs
Authority to adopt a Real Property Transfer
Tax (RPTT)
Local RPTT revenue goes entirely to the
Town
Still subject to US & CA Constitution, and to
State law on non-municipal matters
Voters control Charter content and can
amend it in the future
C A L I F O R N I A C O N T E X T
Charter Cities & Towns in California
~362
General Law
Cities/Towns
~121
Charter
Cities/Towns
~26%
Of California cities
have charters
Nearby Charter Cities that include a local RPTT component:
Albany Berkeley Emeryville
El Cerrito San Mateo Piedmont
P R O P O S E D C H A R T E R
Council-Directed Approach: A Simple, Focused Charter
On April 22, 2026, the Town Council directed preparation of a brief, narrowly focused charter similar to the St. Helena model that authorizes the proposed RPTT while otherwise keeping Portola Valley subject to general State law to keep the process simple, streamlined, and on schedule.
WHAT CHARTER WILL DO
Convert Town from General Law to Charter
status
Focuses narrowly on revenue authority to
authorize the Town to levy an RPTT
Keep 100% of RPTT revenue locally
controlled
Preserve existing Town governance
structure and Municipal Code
Allow future Charter amendments if voters
choose
WHAT CHARTER WILL NOT DO
Change the Town's form of government
Alter the Municipal Code or existing law
Affect public contracting or prevailing wage
rules
Change local election procedures
Limit future Council or voter options
P R O P O S E D T I M E L I N E
Path to the November 3, 2026 Ballot
March 25
2026
Council
Direction
Provided to
Proceed
with
Charter
April 22
2026
Council
Direction
May 13
2026
Public
Hearing #1 on
Draft Town
Charter
(Today)
June 24
2026
Public
Hearing #2 on
Draft Town
Charter
July 8
2026
Council
Direction
on Ballot
Measure
July 22
2026
Council
Consideration
of
Resolution to
Place Measure
on Ballot
November 3
2026
Election
Day
Filing Deadline: August 7, 2026 — Last day to submit ballot measures to the County Registrar of Voters If voters approve: Charter and RPTT take effect January 1, 2027. Require a 50%+1 majority vote.
P U B L I C H E A R I N G
Tonight’s First Public Hearing on Draft Charter
Charter Summary
St. Helena model selected: simple, brief charter focused on RPTT authorization; Town otherwise remains subject to general State law
St. Helena Article IV (Form of Government) not included: Staff researched and determined the Town does not need to specify its form of government in the Charter Draft Town Charter prepared and attached for public review and comment Second public hearing scheduled for June 24, 2026 (at least 30 days after today) Public Hearing
Council and public invited to review and comment on the draft Charter Staff recommend the Council hold this public hearing and receive community input on the proposed draft Charter before the Council considers placing it on the November 3, 2026 ballot.
T O W N C O U N C I L
Questions for staff
Q2