Voter Guide 2001: Portola Valley voters to decide fate of two utility users taxes Voter Guide 2001: Portola Valley voters to decide fate of two utility users taxes (October 24, 2001)

By Sharon Driscoll
Almanac Staff Writer

Along with the contested Town Council race, voters in Portola Valley will decide the fate of both of their utility users taxes, one of which raises about 15 percent of the town's operating budget each year. The other raises about $200,000 each year for the town's open space fund.

Measure R would extend the existing utility users tax of 5.5 percent on electricity, telephone, and water bills for another four years. Revenue from the tax goes directly into the town's operating budget.

Town Administrator Angela Howard says that in a town with only a handful of revenue-generating businesses, this income is vital.

"This is a significant amount of our operating budget and it would be very difficult to replace," said Ms. Howard. "The town would be forced to cut back if Measure R did not pass."

The tax was approved by voters four years ago with an 87 percent majority.

Measure S, a second utility users tax of 2 percent, raises funds for the sole purpose of preserving open space. When it came before voters four years ago, the tax passed with an 80 percent approval. This measure cannot be passed unless Measure R passes. If adopted, it would also be in place for another four years.

The utility users tax was first adopted by voters in 1985 as a 6.5 percent tax for the town's general fund. It was reduced to the current 5.5 percent in 1997 when voters again approved it, but added the 2 percent open space allocation, which is restricted and cannot be used for town operating costs.

Since voters have already approved both taxes and this year's measures reauthorize the taxes, both measures will require only a simple majority to pass.

But when Portola Valley residents read their ballot measures, they may find the legalese a bit confusing. Rather than simply asking voters to reauthorize the taxes, the ballot asks voters to "adjust the appropriations limit."

Town Attorney Sandy Sloan said the language was necessary because that is, in fact, what the town is asking. She said that state law capped town expenditures based on tax laws adopted in 1978, and the capped amount was adjusted periodically. So voters are being asked to adjust the cap to allow the town to continue to spend the money that is collected.

She said that if the measures were not passed, the town would still collect the money, but not be allowed to spend it.