Speech to Council on 7-1-24 Reduced VersionTHE GRAND JURY ASKED:
ARE WE BEING DUPED?
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Review 10 years of Actual Revenues to Acutal Expenses General Fund
(source 2023 Los Gatos ACFR)
Fiscal
Year
Total Actual
Rev
Total Actual
Exp
Surplus
(Deficit)
Exp/Rev
= %
2014 38,468,192 34,902,195 3,565,997$ 91%
2015 40,710,141 34,861,895 5,848,246$ 86%
2016 39,516,979 36,165,995 3,350,984$ 92%
2017 38,746,123 34,542,602 4,203,521$ 89%
2018 40,529,416 37,014,345 3,515,071$ 91%
2019 43,622,934 37,993,949 5,628,985$ 87%
2020 42,715,907 44,270,043 (1,554,136)$ 104%Payments to CalPers
2021 42,739,761 46,612,586 (3,872,825)$ 109%Payments to CalPers
2022 46,623,452 43,332,557 3,290,895$ 93%
2023 50,609,731 44,890,847 5,718,884$ 89%
Average 42,428,264$ 39,458,701$ 2,969,562$ 93%
Source of Data: 2023 Los Gatos Audited ACFR
For The General Fund
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30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Actual Revenues and Expenses
Total Actual Rev Total Actual Exp
For 10 years, we have not had
a problem with "unfunded
mandates"
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WHEREAS,the costs of providing Town services and programs to residents have significantly
increased over the years and Town revenues have not kept pace;
WHEREAS,the Town seeks to maintain and improve public safety services; (the same thing
they claimed for 2018 Measure G)
WHEREAS, the Town also seeks to maintain and improve emergency services, including
protection against wildfire and storm hazards; (the same thing they claimed for 2018
Measure G)
WHEREAS,the Town also seeks to help fund infrastructure programs improving traffic flow
and mobility to relieve congestion; (the same thing they claimed for 2018 Measure G)
What does the Town Want?
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WHEREAS,the Town Council also desires to submit to the qualified voters of the Town on
the same ballot as the proposed Tax measure a proposed non-binding advisory measure
(“the Advisory Measure”) asking the voters whether they would prefer the revenues from the Tax measure,
should it pass, to be spent on certain identified priorities.
The Finance Commission made up of the Council’s own hand-picked advisors, all with excellent financial
knowledge, recommended the tax be a specific tax. Council did not take their advice. What makes us
think this time will be different? Three members of this Council are upzoning additional lots for housing.
Did they listen to the voters who voted for a referendum? What makes us think they will listen to the
citizens in the future?
So What is the Town’s Proposal?
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It’s a General Tax. “Advisory” is absolutely like taking a knife to a gun
fight.
•WHEREAS,the Town Council also desires to submit to the qualified voters of the Town on
the same ballot as the proposed Tax measure a proposed non-binding advisory measure (“the
Advisory Measure”) asking the voters whether they would prefer the revenues from the Tax
measure, should it pass, to be spent on certain identified priorities;
•This also was to happen with Measure G in 2018 though with less fanfare.
•Raise your hand if you’ve seen an annual report on Measure G from the citizens.
•Raise you hand if you can show me where that information can be found easily, if at all, on
the Town’s website?
•What makes you think this time will be different?
WHAT IS THE PROBLEM WITH THIS TAX REQUEST?
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COMMENTS:
•Strictly looking at the last 10 years as one element of the decision-making
process, we are averaging a GF surplus of nearly $3M every year even though we
made a $10.4M payment on pensions.
•That will save the Town over $12M. It took the Council 3 years to finally make the
decision to pay. That delay cost the Town ~ $1.5M of interest and expenses. This
Council is now delaying a second Two Million payment on pension debt.
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COMMENTS:
•Why would the citizens vote for a tax to pay expenses when the Council refuses to
pay down pension debt, compounding at 6.5-7% per year?
•Why vote for a tax that can arbitrarily be used for any Council project –or salary
increases ?
•We have not had an “unfunded mandate liability” problem for 10 years. What’s
changed?
•ARE WE BEING DUPED?
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