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Portola Valley council backs exploring a town charter to enable local real‑property transfer tax
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Summary
Council directed staff to pursue a focused town charter and a voter measure to authorize a locally controlled real‑property transfer tax (RPTT), citing a projected structural deficit and a desire to preserve local control; staff recommended a brief, narrowly targeted charter and a public‑hearing schedule leading to a November ballot.
The Portola Valley Town Council voted to proceed with drafting a narrowly focused town charter and ballot language to authorize a locally controlled real‑property transfer tax, staff said at the April 22 meeting.
Town Manager Darcy Smith told the council the town faces a structural budget gap—staff estimated about $700,000 annually—and warned that reserves could fall below the new 20% minimum if revenue options are not pursued. Smith said a charter is required because general‑law towns lack authority to adopt a standalone local RPTT and the charter would let Portola Valley keep 100% of any new RPTT revenue locally controlled.
Staff framed the proposal as limited in scope. "We recommend a simple, focused charter," Smith said, citing examples such as Saint Helena that narrowly authorize taxation powers while otherwise deferring to state law. The recommended approach would preserve the town's existing council–manager structure, municipal code and local election procedures, staff said. Any charter language and RPTT rate would be subject to voter approval.
Councilmembers asked technical and policy questions about legal costs, amendment pathways and whether specifying certain provisions (for example, prevailing‑wage language) creates additional exposure. Town attorney staff responded that a brief charter focused on RPTT authority minimizes legal complexity and that any future amendments would still require voter approval.
Public speakers urged simplicity. "The simpler, the better," one resident said, adding a focused charter reduces opportunities for opponents to target unrelated provisions. Several residents and a finance‑committee participant said they view a local RPTT as the most viable revenue option to sustain town services.
The council directed staff to return with a draft charter and the formal public‑hearing timeline; staff said the first public hearing on a draft charter will be May 13, followed by additional hearings in June and action on ballot language in July if the council chooses to proceed. The filing deadline for the November 3 ballot was listed by staff as August 7; if approved by voters the charter and any tax would take effect January 1 following the election.
Next steps: staff will prepare draft charter language modeled on the council’s preference for a concise, RPTT‑focused document, circulate it for public review at the May hearing and return with recommended ballot language and rate options for later council consideration.
