Attachment 1 - Resolution Approving FY 2022-23 Operating Budget and FY 2023-24-2027-28 Capital1 of 4
Resolution 2023- June 6, 2023
DRAFT RESOLUTION 2023-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING THE FISCAL YEAR (FY) 2023/24 OPERATING BUDGET AND FY 2023/24–
2027/28 CAPITAL BUDGET; NEW APPROPRIATIONS; OTHER ADJUSTMENTS;
AMERICAN RESCUE PLAN ACT RECOGNITION; MINOR CORRECTIONS; AND
CARRY-FORWARD APPROPRIATIONS
WHEREAS, Section 2.30.295(b) of the Los Gatos Town Code requires the Town
Manager to annually prepare and submit a budget to the Town Council and be responsible for
its administration; and
WHEREAS, the Town Manager submitted to the Town Council and Finance
Commission a Proposed Operating Budget for FY2023/24 on April 17, 2023; and
WHEREAS, the Town Manager submitted to the Town Council and Finance
Commission a Proposed Five-Year Capital Improvement Program for FY 2023/24 – 2027/28 on
April 17, 2023; and
WHEREAS, the Town Council conducted a noticed public hearing on the Proposed
Operating Budget and Capital Improvement Program on May 16, 2023; and
WHEREAS, per Measure A, the Town Council has considered and reviewed the
Finance Commission written recommendations to the Town Council on the said proposed
Budget and Capital Improvement Program during the public hearing on May 16, 2023; and
WHEREAS, per Measures G and A, the Town Council has considered and reviewed
the Finance Commission written recommendations to the Town Council regarding the potential
allocation of Measure G proceeds during its public hearing on May 17, 2022; and
WHEREAS, the Town Council has continued the use of Measure G proceeds in the
remainder of the forecast (FY 2023/24- FY 2027/28) to be 50% for operating expenditures and
50% for capital purposes; and
WHEREAS, the Town Council previously allocated residual Measure G proceeds for
capital should pe programmed to the Shannon Road Repair Project; and
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Resolution 2023- June 6, 2023
WHEREAS, the Town Council has continued the use of Measure G proceeds in the
remainder of the forecast (FY 2023/24- FY 2027/28) to be 50% for operating expenditures and
50% for capital purposes; and
WHEREAS, the Town Council previously allocated residual Measure G proceeds for
capital should pe programmed to the Shannon Road Repair Project; and
WHEREAS, the future year Measure G proceeds for capital should pe programmed
to the State Route 17 Corridor Project; and
WHEREAS, the estimated FY 2023/24 Education Realignment Augmentation Fund
(ERAF) revenue increased by $660,900 based on current estimates; and
WHEREAS, the Town Council has determined that 30% of the ERAF proceeds should
be reserved in an ERAF Risk Reserve, until the lawsuit between the State and School Districts
regarding the ERAF calculation distribution is concluded; and
WHEREAS, the estimated FY 2023/24 expenditures and pass through revenues and
expenditures increased by $33,000 for additional money for the Chamber Agreement; and
WHEREAS, the estimated FY 2023/24 expenditures increased by $11,000 for
additional money for supporting project based Commissions; and
WHEREAS, the Town Council has determined that the Town salary and expenditure
will decrease by $1,618,107 by building in the 4.6 % salary saving factor; and
WHEREAS, the Town Council has determined that the Town reimbursement of
$1,608,226 from available Other Post-Employment Benefits (OPEB) 115 Trust assets for retiree
pay-as-you go expenses in FY 2023/24 in not necessary if the build in 4.6 % salary saving factor
materialize; and
WHEREAS, the Town Council has determined to recognize the remainder of
American Rescue Plan Act (ARPA) proceeds for FY 2023/24 under loss revenue; and
WHEREAS, the Town Council has determined that once the ARPA Revenues were
fully recognized as loss revenue, it becomes the part of General Fund and available for Council
direction for any lawful government service. Staff is tracking the $7.2 million total revenue
received against Council directed use through pass through revenues and expenditures, and
WHEREAS, the Town Council has determined that the remainder of the $7.2 million
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Resolution 2023- June 6, 2023
proceeds should be tracked in an Council Priorities – Economic Recovery Reserve; and
WHEREAS, on June 6, 2023, Town Council considered and reviewed the proposed
Budget and Capital Improvement Program making final determinations.
NOW, THEREFORE, BE IT RESOLVED: that the Town Council hereby adopts as the
Operating Budget for the Town of Los Gatos for the 2023/24 fiscal year as depicted in Exhibit A
entitled “Total Town Revenues and Expenditures by Fund” including the first year (FY 2023/24)
of the Town’s Capital Improvement Program budget as contained in the Town’s FY 2023/24 –
2027/28 Capital Improvement Program.
BE IT FURTHER RESOLVED, that the final adopted Budget documents include minor
corrections and approved appropriations for unspent prior year allocations, and that they be
carried forward from prior years in a Reserve for Encumbrances whereby within each fund
there is an amount sufficient to cover approved outstanding encumbrances as of June 30, 2022.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 6th day of June, 2023 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE:
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE:
TOTAL TOWN REVENUES AND EXPENDITURES BY FUND
EXHIBIT A
2023/24 Estimated 2023/24ProposedBudget RecommendedBudgetRevisionBudget
REVENUES
General Fund 54,130,896$ (914,326)$ (1)53,216,570$
Special Revenue Funds 542,380 - 542,380$
Internal Service Funds 4,947,389 - 4,947,389$
Capital Project Funds (does not include carryforwards)8,547,920 - 8,547,920$
Successor Agency Funds 3,811,664 - 3,811,664$
TOTAL REVENUES 71,980,249$ (914,326)$ 71,065,923$
OTHER FUNDING SOURCES
Designated One-Time Use of General Fund Reserves 2,361,000 33,000$ 2,394,000 (2)
TOTAL TOWN REVENUES & OTHER FUNDING SOURCES 74,341,249$ (881,326)$ 73,459,923$
TOTAL TOWN EXPENDITURES, TRANSFERS OUT & CARRYFORWARD APPROPRIATION
General Fund 56,101,896$ (1,586,649)$ (3)54,515,247$
Special Revenue Funds 469,381 (9,794) (4)459,587
Internal Service Funds 6,132,798 - 6,132,798
Capital Project Funds (does not include carryforwards)10,658,747 - (5)10,658,747
Successor Agency Funds 3,801,021 (87) (6)3,800,934
TOTAL TOWN EXPENDITURE & OTHER FUNDING USES 77,163,843$ (1,596,530)$ 75,567,313$
GENERAL FUND SOURCE(USE) OF FUND BALANCES 390,000$ 660,900$ 1,095,323$
OTHER FUNDS SOURCE(USE) OF FUND BALANCES (3,212,594) (3,202,713) (7)
TOTAL SOURCE(USE) OF FUND BALANCES (2,822,594)$ 715,204$ (2,107,390)$
Numbers may differ between exhibits due to rounding.
(4) Special Revenue Fund Expenditures
$9,794 - Decrease - 4.6% Salary Saving Factor
(1) Additional General Fund Revenues
$1,608,226 Decreases OPEB Trust Reimbursement for Retiree Medical
$660,900 Increases Additional ERAF Proceeds to Reserve At Risk
$33,000 - Increase ARPA Replacement Pass Through Revenue - Tracking
(2) Designated One-Time Use of the General Fund Reserves during FY 2023/24
$1,615,000 - Transfer to Capital Projects (GFAR)
$779,000 - ARPA Revenue Replacement Tracking
(3) General Fund Expenditures
$1,663,649 - Decrease - 4.6% Salary Saving Factor
$11,000 - Increase Project Based Boards and Commissions Support
$33,000 - Increase Chamber Agreement
$33,000 - Increase ARPA Replacement Pass Through Expenditure - Tracking
(5) Capital Project Funds Expenditures
No Change in Total Expenditures, $35,000 transferred from the Lynn Avenue Pedestrian Path
Design Project (411-832-4510) to Emergency Preparedness Project (411-821-2012)
(7) Other Funds Source (Use) represents planned one-time uses of Internal Service Funds, Special Revenue
Funds, Trust Funds, and Capital Project Funds primary for infrastructure and equipment
investment.
(6) Successor Agency Funds Expenditures
$87 - Decrease - 4.6% Salary Saving Factor