Mill Valley finance official warns parcel tax expiration could force cuts; district to poll voters

Paula Rainier, the district’s assistant superintendent for business services, operations and technology, said Mill Valley relies heavily on local revenue and that a parcel tax set to expire in June 2029 represents a major portion of current funding.

"Our parcel tax is 21% of our budget," Rainier said, later noting the parcel tax generates about $12,700,000 annually — roughly 21–22% of the district’s budget — and that the district will begin polling the community well ahead of the 2029 expiration. Rainier said the board’s reserve policy of 25%–35% was chosen in part to ensure the district can sustain operations for a year if the parcel tax lapses.

Rainier cautioned that the district is already in deficit spending and that losing the parcel tax revenue would force additional reductions unless voters renew the measure. "If those funds were to go away, we would still have a lot of reductions that we would need to do," she said.

The presentation explained the planned outreach: Mill Valley will run polls and community engagement to assess support for renewal and to inform any ballot strategy. Rainier said that outreach is intended to avoid drawing down reserves and to ensure fiscal stability through the bond and operating cycles.

District officials also tied the parcel tax issue to credit and bond financing. Rainier said Mill Valley holds a strong credit rating — a "triple" rating — and that higher reserves help secure lower borrowing costs when the district issues bonds for facilities work.

The district did not announce a specific ballot measure or renewal proposal at the presentation. Rainier invited residents to contact the business department or Sue Murphy, the director of business services, for more information and said the district will hold parent presentations and other engagement events before any formal measure moves forward.