Addendum.Mid-Year Budget Performance Report
PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/21/2023 ITEM NO: 14 ADDENDUM
DATE: February 17, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Mid-Year Budget Report - July 1 - December 31, 2022:
a. Receive FY 2022/23 Mid-Year Budget Report;
b. Authorize Budget Adjustments as Recommended in the Mid-Year Budget
Report; and
c. Provide Direction of the Order of Authorized Funding Source to Balance
the FY 2022/23 Operating Budget, if Necessary, at the Final Close of the
Fiscal Year.
REMARKS:
A Council Member had the following inquiries and staff’s response is below.
Please confirm if $4,998,746 of American Rescue Plan Act (ARPA) funds are currently
available to be reprogrammed by the Town Council, itemize what ARPA funds have actually
been spent, specify what funds have been programmed but not spent and what is the
estimated revenues over expenditures.
FY 2020/21 GRAND
BUDGET ADJ.
ACTUALS ESTIMATED ACTUALS BAL REMAINING ESTIMATED EST. MID-YEAR TOTAL
ARPA FUNDS REVENUE RECOGNIZED 200,911$ 3,413,961$ 3,614,872$ 7,229,744$
GOV SERVICES (WAIVERS,CUP&ADA,DIRECT GRANTS)200,911 200,911 REVENUE LOSS -GOV SERVICES (PUBLIC SAFETY)3,413,961 3,413,961 3,614,872 7,028,833
200,911$ 3,413,961$ 3,614,872$ 7,229,744$
GENERAL FUND ARPA REPLACEMENT REVENUES AVAILABLE 200,911$ 3,413,961$ 3,614,872$ 7,229,744$ LESS APPROVED USES TO BE BUDGETED: PARKLETS (DOWNTOWN IMPVTS PROJECT)-$ 680,000$ 466,428$ 213,572$ 250,000$ -$ 930,000$
RENT WAIVERS 121,255 341,452 341,452 - 283,756 746,463
CUP/ADA FEE WAIVERS 19,656 27,672 27,672 - 27,672 75,000
DESTINATION MARKETING 55,000 55,000 - 55,000 K-RAILS (DOWNTOWN IMPVTS PROJECT)68,000 88,654 (20,654) 68,000 PROMENADES 80,000 69,855 10,145 120,000 90,628 200,000
DIRECT GRANTS 60,000 50,000 50,000 - 110,000
ENHANCED SENIOR SERVICES 500,000 249,597 250,403 500,000
CAPITAL IMPROVEMENT PROGRAM SUPPORT TRANSFERS 2,900,000 580,000 2,900,000 REQUIRED FOR GF BALANCING OF OPERATING REV_EXP 1,645,281 1,645,281
TOTAL ALLOCATIONS OF GENERAL FUND ARPA REPLACEMENT REVENUES 200,911$ 1,802,124$ 1,348,659$ 453,465$ 5,226,709$ 670,628$ 7,229,744$
FY 2021/22 FY 2022/23
PAGE 2 OF 3 SUBJECT: Mid-Year Budget Performance Report – Six Months Ending December 31, 2022 DATE: February 17, 2023
REMARKS (continued):
The table above is also found on page 27 of the Mid-Year Budget Report. It depicts that all of
the blue highlighted items that were not fully spent as of December 31 2022 will be fully
expended per Council direction for parklets, enhanced senior services, rent waivers, and other
items as listed.
The Adopted Budget included $2.9 million of ARPA allocation for Capital Purposes (highlighted
in orange in the above table). At its August 16, 2022 meeting, the Council approved the partial
programming of the $2.9 million as demonstrated in the table below.
Project Name
Recommended Funding
Allocation
East Main Street Crosswalk
Improvements 300,000
Downtown Restroom
Feasibility Study/Design 25,000
Rehabilitate Automatic Gates
- 41 Miles Avenue 25,000
Termite Abatement at Water
Tower – 41 Miles Avenue 25,000
Civic Center Plumbing Repair
– 110 E. Main Street 40,000
HVAC Improvements – Police
Operations Building 25,000
Engineering Counter
Modifications – 41 Miles
Avenue 40,000
Unanticipated Repairs 100,000
Council Add: Pinehurst
Community Garden Project 100,000
Reserve for Future Capital
Projects or Matching Funds 2,220,000
TOTAL $2,900,000
As demonstrated in this table, $2,220,000 were set aside for Future Capital Projects or
Matching Funds, such as Shannon Road repair and the required $750,000 match for the
Wildfire Grant. The Capital Improvement Program and direction will be discussed separately at
the the Finance Commission and Town Council March meetings.
Based on staff mid-year estimates, there is approximately $1.4 million operating revenues over
operating expenditures. If all assumptions hold true, the $1.6 million (highlighted in green in
PAGE 3 OF 3 SUBJECT: Mid-Year Budget Performance Report – Six Months Ending December 31, 2022 DATE: February 17, 2023
REMARKS (continued):
the table on the first page) most probably will not needed to balance the FY 2022/23 budget
and would be available for Council reprogramming at the final close of the Fiscal Year with the
audit (December 2023).
The following table demonstrates of the actual spending as of 2/15/2023 as a snapshot. The
actual numbers do not include encumbrances, or future obligations under signed agreements.
*Conditional Use Permit and Americans with Disability Act fee waivers for FY2022/23 will be
determined at the close of the fiscal year.
Attachments previously received with the Staff Report:
1. Mid-Year Budget Report - July 1 - December 31, 2022 as Presented at the Finance
Commission February 13, 2023 Meeting.
2. Public Comments Receive before Posting the Staff Report
Attachments received with this Addendum:
3. Public Comments received after publishing the Staff Report and before 11:01 a.m. on Friday
February 17.
GRAND ACTUAL
SPENDING
TOTAL AS OF 2/15/2023
ARPA FUNDS REVENUE RECOGNIZED 7,229,744$
GOV SERVICES (WAIVERS,CUP&ADA,DIRECT GRANTS)200,911
REVENUE LOSS -GOV SERVICES (PUBLIC SAFETY)7,028,833
7,229,744$
GENERAL FUND ARPA REPLACEMENT REVENUES AVAILABLE 7,229,744$
LESS APPROVED USES TO BE BUDGETED:
PARKLETS (DOWNTOWN IMPVTS PROJECT)930,000$ 926,262$
RENT WAIVERS 746,463 746,463
CUP/ADA FEE WAIVERS*75,000 47,328
DESTINATION MARKETING 55,000 55,000
K-RAILS (DOWNTOWN IMPVTS PROJECT)68,000 88,654
PROMENADES 200,000 200,000
DIRECT GRANTS 110,000 110,000
ENHANCED SENIOR SERVICES 500,000 455,067
CAPITAL IMPROVEMENT PROGRAM SUPPORT TRANSFERS 2,900,000 65,900
REQUIRED FOR GF BALANCING OF OPERATING REV_EXP 1,645,281 -
TOTAL ALLOCATIONS OF GENERAL FUND ARPA REPLACEMENT REVENUES 7,229,744$ 2,694,674$
AMERICAN RESCUE PLAN ACT (ARPA) SUMMARY WORKSHEET