2025-029 - APPROVING THE FISCAL YEAR (FY) 2025-26 OPERATING BUDGET AND FY 2025-26– 2029-30 CAPITAL BUDGET; NEW APPROPRIATIONS; OTHER ADJUSTMENTS; MINOR CORRECTIONS; AND CARRY-FORWARD APPROPRIATIONSRESOLUTION 2025-029
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING THE FISCAL YEAR (FY) 2025-26 OPERATING BUDGET AND FY 2025-26-
2029-30 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 2025-26 on April 21, 2025; and
WHEREAS, the Town Manager submitted to the Town Council and Finance
Commission a Proposed Five -Year Capital Improvement Program for FY 2025-26 - 2029-30 on
April 21, 2025; and
WHEREAS, the Town Council conducted a noticed public hearing on the Proposed
Operating Budget and Capital Improvement Program on May 20, 2025; 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 20, 2025; 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 20, 2025; and
WHEREAS, the Town Council will allocate the entire Measure G proceeds starting
with the FY 2025-26 budget; and
WHEREAS, the Town Council previously allocated residual Measure G proceeds for
capital should be programmed to the Shannon Road Repair Project; and
WHEREAS, the Town Council has determined that the Unassigned Fund Balance
Reserve should be established in the General Fund, and
WHEREAS, the Town Council has determined that the previously established ERAF
Risk Reserve available balance should be transferred to the Unassigned Fund Balance, and
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Resolution 2025-029 June 3, 2025
WHEREAS, the Town Council confirmed that the Unassigned Fund Balance should be
$4,000,000 at June 30, 2025, and
WHEREAS, the estimated FY 2025-26 revenues increased by $220,000 to capture
increased property tax projections, and
WHEREAS, the estimated FY 2025-26 revenues increased by $668,000 to capture
additional anticipated permit fee collected through the Solid Waste Joint Authority, and
WHEREAS, the estimated FY 2025-26 revenues increased by $162,759 to capture
increased sales tax projections, and
WHEREAS, the estimated FY 2025-26 revenues increased by $20,000 to capture
increased transient occupancy tax projections, and
WHEREAS, the estimated FY 2025-26 revenues increased by $110,000 to capture
additional anticipated business license tax collection after the business license delinquency
audit, and
WHEREAS, the estimated FY 2025-26 revenues increased by $181,268 to capture
additional anticipated investment earning based on updated projections, and
WHEREAS, the estimated FY 2025-26 revenues decreased by $360 to capture actual
recovery revenue based on decreased cost in the Below Market Housing program, and
WHEREAS, the estimated FY 2025-26 revenues increased by $15,000 to capture
increased planning permit fee collection projections, and
WHEREAS, the estimated FY 2025-26 revenues increased by $358,891 to capture
increased engineering permit fee collection projections, and
WHEREAS, the estimated FY 2025-26 revenues increased by $50,000 to capture
additional revenue for electric charging station rent, and
WHEREAS, the estimated FY 2025-26 internal service fund revenues decreased by
$108,592, reflecting decreased cost recovery due to additional savings identified in the internal
service fund programs, and
WHEREAS, the estimated FY 2025-26 expenditures decreased by $250,358 due to the
reduction in membership and other miscellaneous items townwide, and
WHEREAS, the estimated FY 2025-26 expenditures decreased by $12,500 providing
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Resolution 2025-029 June 3, 2025
efficiency to the Boards and Commissions by providing standardized bulk give-away items, and
WHEREAS, the estimated FY 2025-26 expenditures decreased by $8,700, reflecting a
decrease in funding for the hotel program, and
WHEREAS, the estimated FY 2025-26 expenditures decreased by $138,000, reflecting
a decrease in funding for outside legal services, and
WHEREAS, the estimated FY 2025-26 expenditures decreased by $67,650 to remove
decorative tree wrap lighting services, and
WHEREAS, the estimated FY 2025-26 expenditures decreased by $104,350, providing
reduced library service offerings, and
WHEREAS, the estimated FY 2025-26 expenditures decreased by $60,000
reorganizing and streamlining the community police complaint process, and
WHEREAS, the estimated FY 2025-26 expenditures decreased by $100,000 due to
decreased block tree pruning services, and
WHEREAS, the estimated FY 2025-26 expenditures decreased by $255,196 due to
additional potential CalPERS benefit savings, and
WHEREAS, the estimated FY 2025-26 expenditures increased by $23,200 due to
additional funding provided to the Town Community Grant Program, and
WHEREAS, the estimated FY 2025-26 internal fund expenditures decreased by
$168,541 due to saving identified by staff, and
WHEREAS, the estimated FY 2025-26 Unassigned Fund Balance used to balance the
FY 2025-26 budget decreased from $3,658,215 to $905,060 based on the aforementioned
revenue and expenditures changes, and
WHEREAS, the Council authorized $1,000,000 reverse use for Emergency Management
during the FY 2024-25, and
WHEREAS, it is anticipated approximately $100,000 funding will spent for Emergency
Management during FY 2024-25, and
WHEREAS, the estimated available expenditure budget balance will carryforward to FY
2025-26 Emergency Management Program budget, and
WHEREAS, on June 3, 2025, Town Council considered and reviewed the proposed
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Resolution 2025-029 June 3, 2025
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 2025-26 fiscal year as depicted in Exhibit A
entitled "Total Town Revenues and Expenditures by Fund" including the first year (FY 2025-26)
of the Town's Capital Improvement Program budget as contained in the Town's FY 2025-26 —
2029-30 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, 2025.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 3rd day of June, 2025 by the following vote:
COUNCIL MEMBERS:
AYES: Rob Rennie, Mary Badame, Maria Ristow, Rob Moore, and Mayor Matthew Hudes
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
n
TOWN CL : OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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Resolution 2025-029 June 3, 2025
TOTAL TOWN REVENUES AND EXPENDITURES BY FUND
REVENUES
General Fund
Special Revenue Funds
Internal Service Funds
Capital Project Funds (does not include carryforwards)
FY 2025-26
Estimated
FY 2025-26
Proposed
Budget
Recommended
Budget
Revision
Budget
$58,080,028 $ 1,785,558 (1) $ 59,865,586
403,420 - 403,420
7,497,304 (108,592) (2) 7,388,712
4,564,355 4,564,355
Successor Agency Funds 3,923,926 - 3,923,926
TOTAL REVENUES $74,469,033 $ 1,676,966 $ 76,145,999
OTHER FUNDING SOURCES
Designated One -Time Use of General Fund Unassigned 3,658,215 905,060
TOTAL TOWN REVENUES & OTHER FUNDING SOURCES $78,127,248 $ 1,676,966 $ 77,051,059
TOTAL TOWN EXPENDITURES, TRANSFERS OUT & CARRYFORWARD APPROPRIATION
General Fund
$61,348,243
$ (967,597)
$ 60,380,646
Special Revenue Funds
466,581
(947)
465,634
Internal Service Funds
8,887,546
(168,541)
8,719,005
Capital Project Funds (does not include carryforwards)
7,206,822
-
7,206,822
Successor Agency Funds
3,817,122
(10)
3,817,112
TOTAL TOWN EXPENDITURE & OTHER FUNDING USES
$81,726,314
$ (1,137,095) (3)
$ 80589219
OTHER FUNDING USES
Designated One -Time Use of General Fund Reserves -
TOTAL TOWN EXPENDITURES & OTHER FUNDING SOURCES $81,726,314 $ (1,137,095) $ 80,589,219
GENERAL FUND SOURCE(USE) OF FUND BALANCES $ 390,000 $ 390,000
OTHER FUNDS SOURCE(USE) OF FUND BALANCES (3,989,066) (3,928,160)
TOTAL SOURCE(USE) OF FUND BALANCES $ (3,599,066) $ (3,538,160)
Note: $900,000 anticipated Carryforward Expenditure Budget is not included in this schedule.
EXHIBIT A
(1) Additional General Fund Revenues in the amount of $1,785,558
Property Tax
Waste Hauler Permit Fee
Sales and Use Tax
Sales and Use Tax - Measure G
Transient Occupancy Tax
Business License Tax
Interest
Planning Permit Fees
Below Market Housing Service Fee (based on decreased cost)
Engineering Fees
Electric Vehicle Charging Stations Enhanced Revenue
(2) Decreased Internal Service Charges in the amount of 108,592
Decreased Internal Service Expenditures Cost Recovery
220,000
668,000
131,490
31,269
20,000
110,000
181,268
15,000
(360)
358,891
50,000
$ 1,785,558
$ (108,592)
$ (108,592)
Total Revenues $ 1,676,966
(3) Tiered Operational Savings in the amount of $1,137,095
All Tier 1, Some Tier 2, and Some Tier 3 Reductions
Reduce Membership and other Operational Reductions
Reduce Boards and Commissions Budget
Add Bulk Purchase Items to Boards and Commissions
Reduce Hotel Program
Reduce Outside Legal Services Hours
Remove Decorative Tree Wrap Lighting
Reduce Library Offerings
Reorganize Community Police Complaints
Reduce Block Tree Pruning
Pension Benefit Savings
Increase Community Grant Funding
Internal Service Funds Operational Savings
(245,358)
(17,500)
5,000
(8,700)
(138,000)
(67,650)
(104,350)
(60,000)
(100,000)
(255,196)
23,200
(168,541)
Total Expenditures $ (1,137,095)
EXHIBIT A