ARGUMENTS IN SUPPORT OF OR IN OPPOSITION TO THE PROPOSED LAWS ARE THE OPINIONS OF THE AUTHORS TOWN OF PORTOLA VALLEY MEASURE A "Shall the Town of Portola Valley adjust the appropriations limit of the Town each fiscal year commencing July 1, 1998, by the amount of money collected from the existing 5.5% Utility Users Tax during the time of its levy and collection, provided that the authorization to so adjust the appropriations limit shall not exceed four (4) years from the end of Fiscal Year 1997-1998?" IMPARTIAL ANALYSIS OF MEASURE A The Council of the Town of Portola Valley has called for a municipal election to be combined with the general election to be held on November 4, 1997, for the purpose of presenting to the Town's qualified electors a ballot measure, which, if approved by more than 50% of the voters voting on the measure, will authorize an adjustment in the Town's appropriations limit each fiscal year starting July 1, 1998, by the amount of money raised from the imposition of the current 5.5% utility user's tax during the time of its levy and collection in each of the four consecutive fiscal years beginning with the Fiscal Year 1998-1999. Following the final fiscal year of these four fiscal years, the Town's appropriations limit will revert to the amount it would have been had the ballot measure not received a favorable vote. If the measure receives a favorable vote, the utility user's tax will continue to be levied and collected at a rate not to exceed 5.5%. Money collected from the tax levy will be placed in the Town's general fund and expended for general governmental purposes. If the measure does not receive a favorable vote, the utility user's tax may not be levied, collected and expended in an amount that would cause the Town to exceed its current appropriation limit. Margaret A. Sloan Town Attorney for Town of Portola Valley ARGUMENT IN FAVOR OF MEASURE A VOTE YES ON MEASURE A to permit our Town Council to continue our Utility Users Tax (UUT) at its current rate to assure Portola Valley's continued financial strength. Portola Valley's tradition of sound government has always been characterized by prudent financial management. With its small, but efficient staff, and strong volunteer tradition, the Town serves its residents with the smallest municipal budget in San Mateo County. In 1985, the Town Council enacted the first UUT to provide funds for public works facilities. Residents voted to extend the UUT to complete those projects in 1987. Since then, loss of property tax revenues to the State, and costly Federal and State mandates have reduced revenues and increased costs to all local governments including Portola Valley. To confront this loss of revenue and increase in costs, Town residents voted overwhelmingly in 1993 to extend the UUT for another four years at the present 51/2% rate. Currently, the UUT provides about $360,000 per year toward our General Fund, which is 17% of our total yearly revenue. Eliminating the tax would require cuts in services such as public safety and public works projects, and would eventually reduce our reserves to an unacceptable level. The Town Council has determined that a 51/2% UUT rate will provide the present level of services and will maintain a prudent level of reserves. By voting YES ON MEASURE A, we will give the Town Council discretion to levy the UUT at a 51/2% rate, or less if circumstances permit, and continue our tradition of responsive and financially responsible government. We recognize the critical need for your approval of this ballot measure. Please join us by voting YES ON MEASURE A. Robert H. Anderson, Police Commissioner, Former Mayor Robert V. Brown, Open Space Committee Advisor, Former Mayor Edward M. Davis, Finance Committee, Planning Commission Chair Richard T. Merk, Mayor Kent Mitchell, Former Mayor NO ARGUMENT AGAINST MEASURE A SUBMITTED