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16 Staff Report.commission budget with attachment Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 04/16/2024 DATE: April 2, 2024 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Establish a Town Council Policy Governing Town Board, Commission, and Committee Budgets RECOMMENDATION: Establish a Town Council Policy governing Town Board, Commission, and Committee Budgets. BACKGROUND: During the Fiscal Year (FY) 2023/24 Budget process, the Council approved $2,500 for each of the following Commissions: Arts and Culture, Community Health and Senior Services, Complete Streets and Transportation, Library, Parks and Sustainability, and Youth. The funds were intended to support Commission activities in the community, such as Spring into Green. During the Mid-Year Budget process, the Town Council also allocated $2,500 to the Diversity, Equity, and Inclusion Commission. The Proposed FY 2024/25 Budget intends to continue this funding for these seven bodies. Given recent Commission discussions about the appropriate use of the funds, staff is recommending that the Town Council establish a Policy to govern a Commission’s budget. DISCUSSION: Attachment 1 contains a draft Town Council Policy entitled Commission Budgets. The Policy sets forth specific criteria for the appropriate use of the funds, should the Town Council decide to allocate them. The proposed Policy works in concert with the Town’s Purchasing Policy and other procedures. The Policy identifies the appropriate use of a Commission’s budget, including: 1. Purchasing supplies and materials for Commission activities 2. Printing flyers or other materials for distribution to the community PAGE 2 OF 2 SUBJECT: Establish a Town Council Policy Governing a Commission’s Budget DATE: April 2, 2024 DISCUSSION (continued): 3. Purchasing give away items at Town events (e.g., the Youth Commission giving away succulents at Spring into Green) 4. Paying for the registration for a table or booth at a non-Town event 5. Attending relevant workshops (the eligible expense is registration) Under the proposed Policy, inappropriate uses would include: • Hiring a vendor to perform services • Paying Town employees or other individuals • Granting or donating funds to a third-party organization(s), including being a sponsor or financially supporting a third-party organization’s activities and/or events Given the Town’s need to comply with State laws as well as local regulations, any new use for a Commission’s use of its Town funds should be brought to the Town Council for discussion, public comment, and decision. All decisions should be incorporated as modifications to this Policy. The proposed Commission Budget Policy also sets forth the procedure for expenditures that are deemed appropriate under this Policy. CONCLUSION: Staff recommends that the Town Council approve the Commission Budgets Town Council Policy to establish consistency and clear guidelines for the appropriate use of funds by Town Commissions. COORDINATION: The preparation of this report has been coordinated with the Town Attorney, and the Finance Department, Library Department, Police Department, Parks and Public Works Department. FISCAL IMPACT: The establishment and implementation of a Town Council Policy has no fiscal impact. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachment: 1. Proposed Town Council Policy 5-03: Commission Budgets ATTACHMENT 1 COUNCIL POLICY MANUAL TITLE: COMMISSION BUDGETS POLICY NUMBER: 5-03 EFFECTIVE DATE: 04/17/2024 PAGES: 2 ENABLING ACTIONS: REVISED DATES: APPROVED: I. PURPOSE: The Town Council may allocate funding to Town Boards, Commissions, and/or Committees (hereafter, Commissions) for the purpose of communicating the work of the Commission to the Los Gatos community. This Policy sets forth the criteria for the use of these funds, should they be allocated. This Policy works in concert with the Town’s Purchasing Policy and other procedures. II. USE OF COMMISSION BUDGET A. Appropriate Uses: Appropriate uses of a Commission’s budget, include: 1. Purchasing supplies and materials for Commission activities 2. Printing flyers or other materials for distribution to the community 3. Purchasing give away items at Town events (e.g., the Youth Commission giving away succulents at Spring into Green) 4. Paying for the registration for a table or booth at a non-Town event 5. Attending relevant workshops (registration only) B. Inappropriate Uses: Inappropriate uses of a Commission’s budget, include: 1. Hiring a vendor to perform services 2. Paying Town employees or other individuals 3. Granting or donating funds to a third-party organization(s), including being a sponsor or financially supporting a third-party organization’s activities and/or events C. Modification of Appropriate Uses: Should a Commission identify a new use for its Town funds, this Policy must be updated by the Town Council. Small Town Service Community Stewardship Future Focus TITLE: Commission Budgets PAGE: 2 of 2 POLICY NUMBER: 5-03 III. PROCEDURE FOR EXPENDITURES A. Prior to Expenditure: Prior to any expenditure that is an appropriate use, the following procedure must be followed: 1. The request for use of the Commission’s budget must be agendized for Commission consideration. 2. The staff liaison to the Commission would verify that the intended use of the funds meets this Policy. 3. The staff liaison would verify available funds for the expenditure. 4. If approved by the Commission, the staff liaison would explain how the purchase would occur. B. Expenditure: The staff liaison would be responsible for the expenditure, following the Town’s Procurement Policy, State law, and local regulations. C. Post-Expenditure: The staff liaison would be responsible for submitting all receipts and documentation associated with the expenditure to the Finance Department, and retaining the documentation consistent with Town policies, procedures, and practices. APPROVED AS TO FORM: Gabrielle Whelan, Town Attorney