09-15-2026 Finance Agenda Packet

TOWN OF PORTOLA VALLEY Finance Committee Meeting Tuesday, September 15, 2026 4:00 p.m. George Savage, Chair Stephen Cassani, Member Kenneth Lavine, Member Chris Rittler, Member Michele Takei, Member William Urban, Member Mark Waissar, Member VIRTUAL PARTICIPATION VIA ZOOM To access the meeting by computer: https://us06web.zoom.us/j/82514800891?pwd=SzGLlhvBFl0desEaTbscGVHPQh0btL.1 Webinar ID: 825 1480 0891 Passcode: 019063 To access the meeting by phone: 1-669-900-6833 or 1-888-788-0099 (toll-free) Mute/Unmute – Press *6 / Raise Hand – Press *9 AGENDA HISTORIC SCHOOLHOUSE– 765 PORTOLA RD. – PORTOLA VALLEY, CA REMOTE MEETING ADVISORY: On March 1, 2023, all committees in Portola Valley will return to conducting in- person meetings. A Zoom link will be provided for members of the public to participate remotely; however, the Town cannot guarantee there will be no technical issues with the software during the meeting. For best public participation results, attending the meeting in-person is advised. ASSISTANCE FOR PEOPLE WITH DISABILITIES In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (650) 851 -1700 or by email at towncenter @portolavalley.net. Notification 48 hours prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting. 1. CALL TO ORDER & ROLL CALL 2. ORAL COMMUNICATIONS FOR ITEMS NOT ON THE AGENDA Speakers' time is limited to three minutes. 3. ANNOUNCEMENTS and PRESENTATIONS: 4. APPROVAL OF MINUTES: a. Minutes of July 13, 2026 meeting of Finance & Audit Committee 5. NEW BUSINESS: a. Audit Update b. Finance Update c. Fiscal Spending Plan Working Groups 6. OTHER BUSINESS: 7. ADJOURNMENT This meeting body meets on an as-needed basis. ************************************************************************************************************************************* Land Acknowledgement: The Town of Portola Valley acknowledges the colonial history of this land we dwell upon—the unceded territory of the Ramaytush (rah-my-toosh) Ohlone, Tamien Nation, and Muwekma (mah-WEK-mah) Ohlone, who endured a human and cultural genocide that included removal from their lands and their sacred relationship to the land. Portola Valley recognizes that we profit from the commodification of land seized from indigenous peoples and now bear the ecological consequences. We seek to understand the impact of these legacies on all beings and to find ways to make repair. 1 TOWN OF PORTOLA VALLEY Finance Committee Minutes [DRAFT] Monday, July 13, 2026 Attendees Tony McFarlane, Assistant Town Manager George Savage, Chair Stephen Cassani, Member Ken Lavine, Member Michele Takei, Member Mark Waissar, Member (absent) Chris Rittler, Member Bill Urban, Member Craig Taylor, Mayor Darcy Smith, Town Manager Call to Order The Chair called the meeting to order at 4:08 pm. Roll Call The Chair confirmed attendance. Oral Communications for items not on the agenda None Announcements and Presentations None Approval of Minutes • The minutes of the June 2, 2026 meeting were approved as written. • The minutes of the June 30, 2026 meeting were approved as written. New Business • Audit Update • Tony McFarlane announced that the FY24 and FY25 year-end audits are being done concurrently and will be completed by October 15, 2026 so the completed audit reports can be presented to the Town Council (TC) at its 4.A - Minutes 2 last meeting in October. In response to a question asked in public comments, Tony said the audits will cost $70,000 more than budgeted due to a senior partner’s involvement to complete the audits by October 15. Craig Taylor noted that Tony was forgoing a vacation to ensure completion of the audits. Tony had no update on the FY26 audit. • Continued discussion on structural deficit resolution from June 30, 3036 • Tony reviewed the Council priorities and the funding requirements of Long-Term Needs and the Capital Improvement Program which would require annual revenue from a Real Property Transfer Tax (RPTT) of $2.3 to $3 million. Both the RPTT rate and the Utility Users Tax (UUT) can be reduced by the TC without voter approval. Voter approval is only required to increase either from the rate initially approved by the voters. Craig Taylor stated that the TC has agreed that the RPTT should raise between $2.3 - $3 million. The RPTT would not apply to inherited property as long as no “sale” happens. Sales are what trigger the RPTT. Committee discussion and Public comments: • Several members of the Committee expressed surprise in the increase in funding needs from amounts discussed at the June 30, 3026 meeting, just 2 weeks prior. • Darcy Smith thinks that housing sales from the Stanford housing project will be a net negative cost to the Town over the long run so shouldn’t be counted for any upside net revenue. • Chris Rittler suggested that the funding needs looked a little like a “Christmas tree” list and that having levels of priorities would make more sense. • Bill Urban suggested looking into issuing a municipal bond to fund capital projects. He also suggested adding an increase to the UUT as an option on the November ballot. Bill also suggested that communication from the Town could be worded better and words like “autonomy” should be avoided plus it doesn’t make sense to raise the possible disincorporation of the Town as an issue since only one town in California has ever been disincorporated. • Craig stated that to keep things “simple”, the RPTT will really be .55 less additional revenue because the Town already receives .55 from the existing RPTT. So, a $10 (1% or .01) RPTT rate will really only be $9.45 of additional tax for the Town. • Chris suggested our communication should just be that its expensive to be a Town these days and to just be very humble. It should be emphasized that the RPTT rate will be a maximum rate and that the Town will try to spend less. The revenue will be “lumpy” but the Town promises to manage that. 4.A - Minutes 3 • George Savage suggested that the general reserve range from 20% to 60% with 60% being the target. Everyone agreed that the RPTT definitely needs to pass and that a lower RPTT rate would make it much easier to pass. The Committee did not make any final recommendation to the TC on a RPTT rate. Other Business None Adjournment The Chair adjourned the meeting at 5:42 pm. Michele Takei – Acting Secretary 4.A - Minutes 4 ______________________________________________________________________________________ TO: Members of the Finance Committee FROM: Tony McFarlane, Assistant Town Manager DATE: September 15, 2026 RE: FY 2024 and FY 2025 Audits REPORT SUMMARY Audited Financial Statements are scheduled to be presented to the Finance Committee on October 20, 2026. The auditor’s presence will be requested. Drafts for both fiscal years have been received, MD&A’s have been drafted and submitted for final edits and revisions. TOWN OF PORTOLA VALLEY STAFF REPORT TOWN OF PORTOLA VALLEY 5.A - Audit Update 5 ______________________________________________________________________________________ TO: Members of the Finance Committee FROM: Anthony McFarlane, Assistant Town Manager DATE: September 15, 2026 RE: Finance Update REPORT SUMMARY Cash in bank for the fiscal year ended, June 30, 2026, totaled $25,410,054. Of this amount, $24,636,782, or 97%, is invested in the following institutions, $2,939,866 in Tech CU is deposited into a Money Market account earning an APY of 3.83%. Net earnings from investments earned $822,607, for the year ended June 30, 2026. 26-Jun 26-May +/- Bank Tech CU 3,459,879$ 3,264,718$ 195,161$ Bank of America 253,259 553,988 (300,729) LAIF 1,773,569 1,773,569 - Schwab 19,923,347 19,889,571 33,776 Total 25,410,054$ 25,481,846$ (71,792)$ YTD Jun Jul - May Interest Earnings Tech CU 71,084$ 1,597$ 69,487$ LAIF 71,682 17,313 54,369 Schwab Dividends 753,462 58,345 695,117 Market Value (73,621) (24,569) (49,052) Total 822,607$ 52,686$ 769,921$ TOWN OF PORTOLA VALLEY STAFF REPORT TOWN OF PORTOLA VALLEY 5B. - Finance Update 6 Page 2 Finance Update September 15, 2026 Net earnings from Schwab for the fiscal year are earnings from Interest and Dividends of $753,462 less market value depreciation of ($73,621). ENDING FUND BALANCE BY FUND - Estimated Beginning balances have been adjusted to the ending fund balance numbers from the draft FY25 financial statements. Estimated ending fund balances are anticipated to increase by $756 thousand for all funds. The General Fund budget anticipated a deficit of $263 thousand is currently showing a deficit of $111 thousand. Accrued revenue and expenses for FY26 are still being assessed. Accrued revenue is through July 31 and accrued expenses are through August 31. FY26 GENERAL FUND BUDGET The adopted General Fund budget anticipated $7.95 million in revenue and $8.17 million for a deficit of $215 thousand. The mid-year revise increased expenses an additional $48 thousand increasing the projected deficit to $263 thousand. Beginning Transfers Net Ending Balance Revenues Expenditures In/(Out) Activity Balance General Purpose Funds 101 - Unassigned 2,464,893$ 7,706,476$ 7,747,770$ (70,000)$ (111,295)$ 2,353,598$ Restricted Funds 201 - Grants 339,336$ 898$ 244,573$ -$ (243,676)$ 95,660$ 202 - Public Safety Sales Tax 44,203 19,589 16,500 - 3,089 47,292 203 - Public Safety/COPS 186,004 7,668 162,515 - (154,847) 31,157 204 - Open Space 9,710,601 770,071 5,050 - 765,021 10,475,622 205 - Library Fund 28,234 58,239 57,525 - 714 28,948 206 - Gas Tax/RMRA 708,414 278,390 116,250 70,000 232,141 940,555 208 - Frog Pond Open Space 30,070 1,006 - - 1,006 31,076 211 - Measure A 1,261,109 424,922 1,920 - 423,002 1,684,111 212 - Measure M 152,256 4,878 14,340 - (9,462) 142,794 213 - Measure W 848,299 197,339 - - 197,339 1,045,638 221 - Park In-lieu 47,829 1,587 12,664 - (11,077) 36,752 222 - Inclusionary In-lieu 4,901,283 161,201 225,479 - (64,278) 4,837,005 225 - ARPA 184,684 - 184,684 - (184,684) - 401 - Capital Projects 692,613 - 86,973 - (86,973) 605,640 701 - Applicant Deposits - 933,794 933,794 - - - Sub-total 19,134,935$ 2,859,583$ 2,062,267$ 70,000$ 867,316$ 20,002,251$ Fiduciary Funds 501 - Crescent Road Maintenance District -$ 24,982$ 24,982$ -$ -$ -$ 502 - Portola Valley Ranch Road Maintenance District - 2,484 2,484 - - - 504 - Wayside II Road Maintenance District - 68,422 68,422 - - - 505 - Woodside Highlands Road Maintenance District - 118,862 118,862 - - - Sub-total - $ 214,750$ 214,750$ - $ - $ - $ Grand Total 21,599,828$ 10,780,808$ 10,024,787$ - $ 756,021$ 22,355,849$ Fund Estimated 5B. - Finance Update 7 Page 3 Finance Update September 15, 2026 FY26 GENERAL FUND ACTUALS Revenues accrued through July 31, 2026, are at approximately 97% of estimate while expenses accrued through August 31, 2026, are at approximately 95% of estimate. The deficit is currently at approximately $111 thousand. Category Adopted Revised $ % 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 - 0.0