13 Desk Item.Item #13 - Mid-Year Budget Performance Report
PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Town Attorney, and Assistant Town Manager
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/20/2024 ITEM NO: 13 DESK ITEM
DATE: February 20, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Mid-Year Budget Report - July 1 - December 31, 2023:
a. Receive the FY 2023/24 Mid-Year Budget Report; and
b. Authorize Budget Adjustments as Recommended in the Mid-Year Budget
Report
REMARKS:
In response to a Council Member’s questions, staff has provided the following responses in
Italics.
Does the FY 2023/24 Year End Estimates indicate that the GF balance is projected to increase by
$1,737,063 year over year?
The estimated General Fund surplus is not an indication of the changes of the current fiscal year
end General Fund balance because the projected uses of reserves have to be considered as well.
For example, there might be a scenario in which there is an estimated surplus; however, year
end reserves are decreasing because of a planned use of a reserve. The FY 2023/24 Estimated
General Fund Year End balance is illustrated in the table below.
PAGE 2 OF 3 SUBJECT: Mid-Year Budget Performance Report – Six Months Ending December 31, 2023 DATE: February 20, 2024
REMARKS (continued):
Does $1,545,281 in “Economic Recovery” refer to American Rescue Plan Act (ARPA) funds? If
so, where are they being used? Where is the Community Center Development Fund which was
supposed to have $866k? Is that related to the “Economic Recovery” funds in the report? Or
to the $1,615,000 in Capital/Special Projects Reserves?
The Council Priorities – Economic Recovery Reserve has been established to track General Fund
revenues freed up from recognizing all ARPA “replacement” revenues to the General Fund for
essential government services, for economic recovery and business support, enhanced senior
services, capital program augmentations, and other one-time uses as directed by the Town
Council. The FY 2023/24 uses are listed in the following table. The Community Center
Development is part of the $1,545,281. The staff established a capital project for the
Community Center based on the Council’s action on August 15, 2023.
7/1/23 Plus Less 6/30/24ActualRevenues &Transfers Expenditures &Transfers Use of Estimated
Fund Balance Carryforwards In Carryforwards Out Reserves Fund Balance
GENERAL FUNDUnreserved Fund BalancesUndesignated ReservesAvailable to be Appropriated -$ 56,014,683$ 562,411$ 55,245,312$ 1,615,000$ 2,020,281$ 1,737,063$
Restricted Fund Balances
Reserve for Encumbrances - - - - - - -
Pension Trust 1,400,163 - - - - 690,000 2,090,163
Advance to RDA - - - - - - -
Actuarial - - - - - - - Committed to:Budget Stabilization Reserve 6,129,774 - - - - - 6,129,774
Catastrophic Reserves 6,129,774 - - - - - 6,129,774
Pension/OPEB Reserve 300,000 - - - - (300,000) - Measure G District Sales Tax - Operating 590,581 - - - - - 590,581 Assigned to:Open Space Reserve 410,000 - - - - - 410,000
Sustainability 140,553 - - - - - 140,553
Strategy Reserve - - - - - - - Capital/Special Projects 10,359,577 - - - - (1,615,000) 8,744,577 Authorized Carryforwards 37,698 - - - - - 37,698 Compensated Absences*1,580,623 - - - - - 1,580,623
Land Held for Sale 44,338 - - - - - 44,338
Market Fluctuations - - - - - - -
Measure G District Sales Tax - Op/Cap - - - - - - -
To Workers Comp -
Vehicle Maintenance & Stores Residual - - - - ERAF Risk 689,608 - - - - 750,000 1,439,608 Rehab Loan (Nonspendabe)159,000 - - - - - 159,000
Council Priorities - Economic Recovery 1,556,614 - - - - (1,545,281) 11,333
Total General Fund Reserves 29,528,303$ 56,014,683$ 562,411$ 55,245,312$ 1,615,000$ -$ 29,245,085$
Fiscal Year 2023/24 Adjusted Budget
PAGE 3 OF 3 SUBJECT: Mid-Year Budget Performance Report – Six Months Ending December 31, 2023 DATE: February 20, 2024
REMARKS (continued):
Is all $2,500,000 in projected FY 24 Excess Education Revenue Augmentation Fund (ERAF)
revenues included in the $18,997,898 of property taxes? If not, how much is included?
The full $2,500,000 ERAF is included in the FY 2023/24 Estimated Revenues. Staff also reserved
30% or $750,000 of the estimated proceeds to the ERAF Risk Reserve per prior Council direction.
Attachments previously distributed with the Staff Report:
1. Mid-Year Budget Report - July 1 - December 31, 2023
2. Public Comments Received before 11:00 a.m. on February 15, 2024
One-Time Community Grant (Council Action 2-21-2023)150,000
One-Time to LGS REC 55+ Program (Council Action 2-21-2023)225,000
One-Time Unhoused Residents Efforts (Council Action 2-21-2023)25,000
One-Time Rent Forgiveness LGS REC (Council Action 3-21-2023)200,000
One-Time Rent Forgiveness NUMU (Council Action 3-21-2023)21,000
One-Time Unhoused Residents Efforts (Council Action 4-4-2023)25,000
One-Time - Additional Chambers of Commerce (Council Action 5-2-2023)33,000
One-time - Adult Recreation Facility Space Improvements (Council Action 8-15-2023)866,281
Total 1,545,281$
General Fund Council Priorities – Economic Recovery Reserve Tracking FY 2023/24
Estimated