Staff Report.Measure G
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: 3/21/2023 ITEM NO: 7
DATE: March 14, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive the Independent Accountants’ Report on Agreed-Upon Procedures
on Measure G Revenues and Expenditures for the Period July 1, 2021 to June
30, 2022
RECOMMENDATION:
Staff recommends that the Town Council receive the Independent Accountants’ Report on
Agreed-Upon Procedures (AUP) on Measure G Revenues and Expenditures for the period July 1,
2021 to June 30, 2022.
BACKGROUND:
On June 19, 2018, the Los Gatos Town Council adopted Ordinance No. 2274 establishing a
General Transaction and Use Tax (“Ordinance 2274”) for a period of twenty years and put forth
the required ballot measure for voter consideration. On November 6, 2018, the voters of the
Town approved the 1/8 Sales Tax dedicated to Los Gatos (Measure G). Among other items,
Ordinance 2274 and Measure G required Citizens Oversight to ensure funds are spent according
to the Measure’s stated intent.
On November 3, 2020, voters of Los Gatos approved the Measure A ballot initiative establishing
a new Finance Commission and disbanding both the Finance Committee and Sales Tax
Oversight Committee. Among other responsibilities, the Finance Commission is charged with:
(7) Issue an annual public report of the expenditures and appropriations of sales tax
revenues approved by the Town Council during each fiscal year.
On March 3, 2023, Chavan & Associates, LLP finished the review process and provided the
Independent Accountants’ Report on Agreed-Upon Procedures on Measure G Revenues and
PAGE 2 OF 2 SUBJECT: Receive Measure G AUP Report DATE: March 14, 2023
DISCUSSION:
Expenditures for the Period July 1, 2021 to June 30, 2022 (Attachment 1). During this period,
there were collection fees, and police safety and capital transfers that utilized Measure G funds
consistent with the Town Council’s adopted FY 21/22 Budgets:
“State Admin Fees Withheld” is the administration fee imposed by the State Department of Tax
Fee Administration to Los Gatos that is deducted from collected Measure G sales tax. Chavan &
Associates, LLP found that the expenditures were consistent with the voter approved Measure
G.
The Finance Commission received this report on March 13, 2023. The Finance Commission
recommended the Town Council receive this report by a three to one vote. Commissioner Koen
voted no, and Commissioner Howard was not present.
CONCLUSION AND NEXT STEPS:
Staff recommends that the Town Council to receive the Independent Accountants’ Report.
During the budget process, the Council approves the expenditures and appropriations of the
sales tax revenues with consideration of the Finance Commission’s recommendation(s).
Attachment:
1. Independent Accountants’ Report on Agreed-Upon Procedures for Measure G Revenues
and Expenditures For the period July 1, 2021 to June 30, 2022.
State Admin Fees Withheld July - Sept 2021 12,670$
State Admin Fees Withheld Oct - Dec 2021 12,670
State Admin Fees Withheld Jan - March 2022 9,810
State Admin Fees Withheld April - June 2022 12,630
Total Collection Fees 47,780$
50% to Police Safety 629,148
Total Expenditures 676,928$
Transfer to Capital Improvement Program
(50% of prior years and current year collections)1,769,057
Total Tranfers and Expenditures 2,445,985$
FY 2021/22 Expenditures and Transfers