Los Altos Hills doesn't owe Santa Clara County $400,000 after all.
Fifth District Supervisor Joe Simitian said supervisors agreed last week during a special meeting to forgive back payments owed the county because it was the county that committed the error.
Last month, county officials revealed that an accounting mistake from four years ago resulted in the town receiving more than $100,000 a year more than it should have received.
The errors began with the 1996-97 fiscal year and continued through 1999-2000.
Three other communities, Saratoga, Cupertino and Monte Sereno, also were affected.
"The county will not be pursuing repayment for the four cities," Simitian said. "This was the county's error - that view is shared by my colleagues."
"We're very grateful," said new Los Altos Hills City Manager Mark Miller, upon hearing of the supervisors' action. "Simitian and the supervisors have been very supportive."
Miller had the misfortune of hearing about the $400,000 overpayment during his first day on the job. He started with the town Sept. 20.
"I always worry when they say you don't have $400,000 you think you have," he said. But he added, "The town has been prudent on its expenditures. We're not on the thin line in terms of balancing the budget."
However, the estimated $112,000 a year less that the town now will be receiving means, "We'll have to tighten our belts a little bit," Miller said.