18 Desk Item.Item #18 - Budget
PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Town Attorney, and Assistant Town Manger
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/04/2024 ITEM 18 DESK ITEM
DATE: June 4, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Operating and Capital Budgets
a. Adopt a Resolution Approving the Town of Los Gatos Fiscal Year (FY)
2024/25 Operating Budget and FY 2024/25– 2028/29 Capital
Improvement Program (CIP), New Appropriations, Additional Council
Actions on May 21, 2024; Minor Corrections, and Carry-Forward
Appropriations;
b. Adopt a Resolution Approving Commitment of Fund Balances under
GASB 54;
c. Approve FY 2023/24 Budget Adjustments and Reclassifications as listed in
Attachment 3; and
d. Authorize an Expenditure Budget Adjustment from IRS 115 Restricted
Pension Trust to CalPERS up to the Amount Available in the Trust (the
Estimated Balance Available is $2,090,163).
REMARKS:
After the distribution of the staff report, staff noticed the FEMA Covid 19 reimbursement
($106,978) program distribution did not display correctly. Attachment 5 includes the corrected
table and the description header.
Attachments Previously Distributed with the Staff Report:
1. Resolution of the Town Council Approving FY 2024/25 Operating Budget and FY 2024/25 –
2028/29 Capital Improvement Program (with Exhibit A)
2. Resolution of the Town Council of the Town of Los Gatos Approving Commitments of Fund
Balance under GASB 54
3. FY 2023/24 Requested Budget Adjustments
4. Public Comments Received before Publishing the Staff Report
PAGE 2 OF 2 SUBJECT: Operating and Capital Budgets DATE: June 4, 2024
Attachment Distributed with this Desk Item:
5. FY 2023/24 Requested Budget Adjustments Updated
1
FY 2023/24 YEAR-END RECOMMENDED BUDGET ADJUSTMENT - UPDATED
Budget adjustments are recommended for the following revenues and expenditures at the
year-end as described below:
ATTACHMENT 5
Fund Program Account Amount Comments
111 1201 41126 Excess ERAF 34,819$
Santa Clara County Property Tax
Estimates March 2024
111 1201 41211 Sales & Use Tax (324,154)
MuniServices Most Probable March
2024 Sales Tax Estimates
111 1221 41214 Measure G - District Sales Tax 4,630$
MuniServices Most Probable March
2024 Sales Tax Estimates 111 1231 45964 Pension Trust Contribution 300,000 Recognizing Pensition Trust 111 4101 43223 FEMA Covid 19 Reimbursement 76 Funds Received 111 4201 43223 FEMA Covid 19 Reimbursement 272 Funds Received 111 4301 43223 FEMA Covid 19 Reimbursement 6,991 Funds Received 111 5101 43223 FEMA Covid 19 Reimbursement 86 Funds Received 111 5301 43223 FEMA Covid 19 Reimbursement 938 Funds Received 111 7101 43223 FEMA Covid 19 Reimbursement 7,193 Funds Received TOTAL GENERAL FUND REVENUES 30,851$
Fund Program Account Amount Comments111 1201 99611 To General Liability 430,000$ Funds Partially Expended
111 Town-wide 5XXXX Salaries and Benefits Varies
Up to 4.6% Salary Saving Factor
Applied Up to the Amount of
$1,673,540 by Programs/Departments
111 Town-wide 5XXXX
Additional Expensed due to
Protective Leaves Varies Up to the Amount of $540,000
111 1101 5XXXX Additional Benefit Expenditures 5,000 Funds Partially Expended 111 2102 67222 Grant to KCAT (100,000) Grant Awarded Prior Fiscal Year 111 5101 62379 Miscellanious Services and Repairs 14,000 Funds Partially Expended
TOTAL GENERAL FUND EXPENDITURE 349,000$
Fund Program Account Other Fund Revenues Amount Comments49111430,000$ From General Fund 430,000$
612 2202 43223 FEMA Covid 19 Reimbursement 36,297$ Funds Received 36,297$
633
633 5404 43223 FEMA Covid 19 Reimbursement 54,443$ Funds Received 54,443$
411411 411-821-2302 43223 FEMA Covid 19 Reimbursement 683$ Funds Received 683$
411 411-811-9901 43320
True up Anticipated Measure B
Funding 439,524$ Funds Anticipated
439,524$
421
421 421-812-0129 49611
ABAG Grant not Expected to be
Received (35,000)$ Funds not Received
(35,000)$
411 411-816-0425 82405 Transfer from Stormwater System 190,000$ Funds not Expended 411-816-0414 82405 Transfer to Storm Drainage Mapping (190,000) Funds not Expended
-$
471
471 471-811-0009 82405
North 40 Traffic Mitigation
Reimbursement for Transportation
Improvements 47,977$
Funds Expended
47,977$
GFAR
Traffic Mitigation
GFAR
Grants
Workers Compensation
Facilities Maintenance
General Fund Revenues
General Fund Expenditures
2
ERAF: $34,819 revenue budget increase to reflect current estimates and forecasts
provided to the Town from Santa Clara County.
Sales and Use Tax: $324,154 revenue budget decrease to reflect current sales tax trends
based on MuniServices’ current projections.
Measure G – District Sales Tax: $4,630 revenue budget increase to reflect the current
trends of the one-eight cent sales tax based on MuniServices’ projections.
Pension Trust Contribution: $300,000 revenue budget increase to recognize the
additional contribution to the Restricted Pension Trust.
FEMA Covid-19 Reimbursement: $106,978 revenue budget increase to recognize FEMA
Covid-19 Grant Reimbursement in Town-wide.
Transfer to General Liability: $430,000 expenditure budget increase for General Fund
transfer to the General Liability Program, and a $430,000 revenue budget increase in
transfer from General Fund. The transfer is needed due to the increased premium cost
experienced in the insurance pool.
Salaries and Benefits (Vacancy Factor): A salary and benefits expenditure budget
increase up to the amount of the 4.6% salary savings factor ($1,673,540) for individual
Departments/Programs as needed based on year-end actual expenditures. At this time,
it is estimated that $700,000 salary and benefits expenditure budget increase is needed,
however the final amount will be determined at the close of the Fiscal Year.
Salaries and Benefits (Protective Leaves): An expenditure budget increase up to the
amount of $540,000 to cover additional cost incurred due to protective leaves.
Salaries and Benefits (Benefits): $5,000 expenditure budget increase to cover additional
benefit cost incurred due to staff coverage change during the fiscal year.
Grant to KCAT: $100,000 expenditure budget decrease since the grant was provided to
KCAT at the end of FY 2022/23.
Miscellaneous Services and Repairs: $14,000 expenditure budget increase to recognize
the cost of personnel-related contract services.
Street Repair and Resurfacing Project: $439,524 revenue budget increase to true up
anticipated Measure B Funding.
3
ADA Transition Plan: $35,000 revenue budget decrease since the ABAG grant was not
received.
Capital Project Transfer: $190,000 expenditure budget transfer from the Storm Water
System – Pollution Prevention Compliance Project to the Storm Drainage Mapping
Project.
North 40 Traffic Mitigation Fee Reimbursement: $47,977 expenditure budget increase
to facilitate developer reimbursement for transportation-related improvements.
FY 2023/24 YEAR-END RECOMMENDED SALARY AND BENEFIT RECLASSIFICATION FROM THE GENERAL FUND TO CAPITAL PROGRAMS
Staff is requesting the salary and benefit reclassification from the General Fund to the Capital
Projects to recognize the utilization of temporary staff for capital projects. Current projection
to reclassify is $300,000, the actual amount will be determined at the close of the fiscal year.