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2024-031 - Resolution Approving FY 2024-25 Operating Budget and FY 2024-25-2028-29 CapitalRESOLUTION 2024-031 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING THE FISCAL YEAR (FY) 2024/25 OPERATING BUDGET AND FY 2025/26- 2028/29 CAPITAL BUDGET; NEW APPROPRIATIONS; OTHER ADJUSTMENTS; 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 FY 2024/25 on April 21, 2024; and WHEREAS, the Town Manager submitted to the Town Council and Finance Commission a Proposed Five -Year Capital Improvement Program for FY 2024/25 - 2028/29 on April 21, 2024; and WHEREAS, the Town Council conducted a noticed public hearing on the Proposed Operating Budget and Capital Improvement Program on May 21, 2024; and WHEREAS, per Measure A, the Town Council has considered and reviewed the Finance Commission's written recommendations to the Town Council on the said proposed Budget and Capital Improvement Program during the public hearing on May 21, 2024; 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 2024/25- FY 2028/29) 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 be programmed to the Shannon Road Repair Project; and Page 1 of 4 Resolution 2024-031 June 4, 2024 WHEREAS, the future year Measure G proceeds for capital should be programmed to the State Route 17 Corridor Project; 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 Town Council has determined that $1,000,000 of the ERAF Risk Reserve should be transferred to Pension/OPEB General Fund Reserve; and WHEREAS, the estimated FY 2023/24 expenditures and pass through revenues and expenditures increased by $33,000 for additional money for the Chamber of Commerce Agreement; and WHEREAS, the estimated FY 2024/25 General Fund expenditures and revenues increased by $100,000 for additional money for additional one-time Community Grants; and WHEREAS, the estimated FY 2024/25 General Fund expenditures and revenues increased by $25,000 for additional money for additional one-time rental assistance community grants; and WHEREAS, the estimated FY 2024/25 General Fund expenditures and revenues increased by $25,000 for additional money for additional one-time nutrition support community grants; and WHEREAS, the estimated FY 2024/25 General Fund expenditures and revenues increased by $100,000 for additional money for one-time contribution to New Museum of Los Gatos (NUMU) History Project; and WHEREAS, the Town Council has determined that once the American Rescue Plan Act (ARPA) Revenues were fully recognized as Toss revenue, they became part of the 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 proceeds should be tracked in a Council Priorities — Economic Recovery Reserve; and Page 2 of 4 Resolution 2024-031 June 4, 2024 WHEREAS, on June 4, 2024, Town Council considered and reviewed the proposed Budget and Capital Improvement Program and made 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 2024/25 fiscal year as depicted in Exhibit A entitled "Total Town Revenues and Expenditures by Fund" including the first year (FY 2024/25) of the Town's Capital Improvement Program budget as contained in the Town's FY 2024/25 — 2028/29 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, 2024. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 4th day of June, 2024, by the following vote: COUNCIL MEMBERS: AYES: Maria Ristow, Rob Rennie, Rob Moore, Matthew Hudes, Mayor Mary Badame NAYS: None ABSENT: None ABSTAIN: None SIGNED: MAY GR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: ATTEST: TOWN CLERK CTI= THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: (9/514 Page 3 of 4 Resolution 2024-031 June 4, 2024 TOTAL TOWN REVENUES AND EXPENDITURES BY FUND 2024/25 Estimated 2024/25 Proposed Budget Recommended Budget Revision Budget REVENUES General Fund $56,428,459 $ 250,000 (1) $ 56,678,459 Special Revenue Funds 337,280 - $ 337,280 Internal Service Funds 6,846,909 - $ 6,846,909 Capital Project Funds (does not include carryforwards) 6,627,998 - $ 6,627,998 Successor Agency Funds 3,828,264 $ 3,828,264 TOTAL REVENUES $74,068,910 $ 250,000 $ 74,318,910 OTHER FUNDING SOURCES Designated One -Time Use of General Fund Reserves TOTAL TOWN REVENUES & OTHER FUNDING SOURCES 1,689,384 $ 33,000 1,722,384 (2) $75,758,294 $ 283,000 $ 76,041,294 TOTAL TOWN EXPENDITURES, TRANSFERS OUT & CARRYFORWARD APPROPRIATION General Fund $56,942,743 $ 283,000 $ 57,225,743 Special Revenue Funds 546,971 546,971 Internal Service Funds 7,566,991 - 7,566,991 Capital Project Funds (does not include carryforwards) 7,629,123 - (3) 7,629,123 Successor Agency Funds 3,816,107 3,816,107 TOTAL TOWN EXPENDITURE & OTHER FUNDING USES $76,501,935 $ 283,000 $ 76,784,935 OTHER FUNDING USES Designated One -Time Use of General Fund Reserves 1,175,100 1,175,100 (4) TOTAL TOWN EXPENDITURES & OTHER FUNDING SOURCES $77,677,035 $ 283,000 $ 77,960,035 GENERAL FUND SOURCE(USE) OF FUND BALANCES $ - $ - $ - OTHER FUNDS SOURCE(USE) OF FUND BALANCES (1,918,741) (1,918,741) (5) TOTAL SOURCE(USE) OF FUND BALANCES $ (743,641) $ - $ (743,641) (1) Additional General Fund Revenues $250,000 - Increase - From Downtown Streestscape Revitalization Project (2) Designated One -Time Use of the General Fund Reserves during FY 2023/24 $1,110,000 - Transfer to Capital Projects (GEAR) $568,051 - One -Time Reserve Use for One -Time Expenditures $11,333 - ARPA Revenue Replacement Tracking $33,000 - One -Time Reserve Use for Chamber Agreement (3) General Fund Expenditures $100,000 - Increase - Community Grant Program from Downtown Streestscape Revitalization Project $25,000 - Increase - Nutrition Grants Program from Downtown Streestscape Revitalization Project $25,000 - Increase - Rental Assistance Grants Program from Downtown Streestscape Revitalization Project $100,000 - Increase - NUMU History Project from Downtown Streestscape Revitalization Project $33,000 - Increase Chamber Agreement (4) Other Funding Uses $390,000 - To Restricted 115 Pension Trust $785,000 - To ERAF Risk Reserve (4) Capitol Project Funds Expenditures No Change in Total Expenditures Transfer from Downtown Streestscape Revitalization Project (411-813-0235) $100,000 - To Community Grants Program (General Fund) $25,000 - To Nutrition Grants Program (General Fund) $25,000 - To Rental Assistance Grants Program (General Fund) $100,000 - To NUMU History Project (General Fund) $100,000 - To Sport Court Resurfacing (411-831-4611) $50,000 - To Civic Center and NUMU Signage (411-813-0242) $50,000 - To Montebello Bollards (remains in 411-813-0235) Transfer from Sport Club Resurfacing Project (411-831-4611) $50,000 to Pinehurst Community Garden Project (411-831-4610) $50,000 to Lynn Ave Pedestrian Path Design Project (411-832-4510) (5) 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. EXHIBIT A Page 4 of 4 RPcnIiitinn Ofl?d-lg1 IIrnp A ma.