One Of CA's Richest Towns Is Running Out Of Money: Reports

PORTOLA VALLEY, CA — One of America’s richest towns is running out of money, according to reports.

The finance committee in Portola Valley discussed possible solutions Oct. 15 to stop the town from going broke in the next four years, reports said.

Among its money woes are a contract with the San Mateo County Sheriff’s Office that is set to jump from $1.7 million to $2.1 million next fiscal year, and $1.7 million spent on consultants and legal fees tied to its housing plan, which was recently decertified, according to The Mercury News. The newspaper also reported that property tax revenue from the county is projected to be lower than anticipated.

Portola Valley’s average residence is worth $3.8 million, its median household income is $250,000, and it is home to tech billionaires and corporate executives, according to the Mercury News.

The municipality has 15 employees but some of the higher ranking roles are vacant, including the city clerk and town manager and engineer, according to the Palo Alto Daily Post, which reported Portola Valley has missed years of audits.

Solutions being considered include cutting staff, diverting tax money, reallocating utility taxes and unincorporating or becoming a charter city, the Mercury News reported. The option of transferring money from the town’s open space fund to be used for other purposes would require a two-thirds vote by residents, according to the Post, which noted the committee also mulled short-term loans.

The town council was expected to consider the possibilities later in October, the Post reported.