Item 2 Staff Report Consider the Preliminary 2002/07 Los Gatos Redevelopment Agency BudgetDATE:
TO:
FROM:
SUBJECT:
MEETING DATE: 5/6/02
ITEM NO.
COUNCIL/AGENCY AGENDA REPORT
April 30, 2002
MAYOR AND TOWN COUNCIL/CHAIR AND BOARD MEMBERS
DEBRA J. FIGONE, TOWN MANAGER/EXECUTIVE DIRECTOR
CONSIDER THE PRELIMINARY 2002/07 LOS GATOS
REDEVELOPMENT AGENCY BUDGET
RECOMMENDATION:
1. Open and hold the public hearing
2. Close the public hearing
3. Consider the Preliminary 2002/07 Los Gatos Redevelopment Agency Budget
BACKGROUND:
Redevelopment Law requires that a redevelopment agency adopt an annual budget that includes:
1. The anticipated revenues of the agency
2. The proposed expenditures of the agency
3. The proposed indebtedness to be incurred by the agency
4. The work program for the coming year
5. An explanation of the previous year's achievements
The proposed FY 2002/07 Redevelopment Budget is intended to provide a clear explanation of the
above requirements in order that the elected officials, the public and other interested parties can
understand the goals, objectives and accomplishments of the Agency in its role of implementing the
Central Los Gatos Redevelopment Plan. After Council/Agency consideration of the document,
formal adoption of the budget will take place at the meeting in June 2002.
PREPARED BY: Bud N. Lortz
Community Development Director
Marty Woodwort1(1'4 1"
Redevelopment Manger
Reviewed by: Attorney Clerk,Jinance Community Development
Revised: 4/30/02 4:30 pm
N:\DEV\Marty\rdabudgetcouncilreport (().wpd
PAGE 2
MAYOR AND TOWN COUNCIL/CHAIR AND BOARD MEMBERS
SUBJECT: REDEVELOPMENT AGENCY BUDGET
April 30, 2002
DISCUSSION:
Introduction
On November, 25, 1991, the Los Gatos Town Council adopted the Redevelopment Plan for the
Central Los Gatos Redevelopment Project . The Redevelopment Plan was pursued as a result of the
Loma Prieta Earthquake in 1989 and the need to rebuild infrastructure in and around Downtown Los
Gatos and enhance the area. Projects such as street and utility reconstruction, parking, streetscape
and civic improvements were called out in the Plan. However, the Town was aware that it would
take a number of years for tax increment revenues to reach levels whereby major projects could be
financed and the projects called out in the Plan implemented.
It has been slightly over 10 years since the Redevelopment Plan was adopted and the Agency is now
entering into a very exciting period in which significant implementation of the Plan can now take
place. A number of factors have occurred and actions taken that now enable significant Agency
implementation. First of these is that the tax increment revenue to the Agency has grown
significantly in recent years and is now at a level whereby the Agency can finance key projects. As
indicated in the "Revenue" section, Agency gross tax increment is estimated to be approximately
$3.7 million in 2002/03. In addition the Town has hired full-time, permanent staff to implement
projects. These positions include the Redevelopment Manager who began in December, 2001 and
key staff in the Parks and Public Works Department to implement the construction of key
infrastructure projects. In summary, the Town now has the financial resources and staffing
necessary to implement key redevelopment projects in and around the Downtown area.
1. Anticipated Revenues of the Agency
The Agency receives the majority of its funds from tax increment revenues. When the Agency was
formed in 1991, the tax base for all properties within the Central Los Gatos Redevelopment Area
was "frozen" to form the base year. As properties are reassessed because of sales or improvements
the tax base grows, and the Agency receives the majority of the difference in property taxes paid
between the "base year" and the new level. This is called tax increment financing and is the primary
funding mechanism for redevelopment agencies throughout California. This does not result in an
increase in taxes to property owners, rather a redistribution of the property taxes to the
redevelopment agency in order that it can reinvest the funds within its redevelopment project area.
In March 2002, the Agency contracted with the consulting firm of Urban Analytics to update its tax
increment projections. Urban Analytics used a conservative 4 percent annual growth rate in tax
increment revenues. Based on their projections it is estimated that gross tax increment revenues for
2002/03 will be approximately $3.7 million. The revenues are used in two primary funds: 1)
Consolidated 80 Percent Capital Projects/RDA Debt Service Fund, and; 2) "20 percent" Affordable
Housing Fund. (Redevelopment Law requires that 20 percent of all tax increment revenues be set -
aside in a separate fund and used only for affordable housing purposes.) The Budget document
provides the details, however the following charts provide an overview of the estimated gross
revenues for the two funds in 2002/03:
PAGE 3
MAYOR AND TOWN COUNCIL/CHAIR AND BOARD MEMBERS
SUBJECT: REDEVELOPMENT AGENCY BUDGET
April 30, 2002
CONSOLIDATED 80% CAPITAL PROJECTS (FUND 930)
RDA DEBT SERVICE FUND (FUND 950)
REVENUES FISCAL YEAR 2002-03
Fund Balance, July 1, 2002
Tax Increment Revenue (Net of 20% Low & Mod. $741,912)
Interest Income
Lease Income-COP's
Bond Proceeds (Net of reserves, discounts & cost of issuance)
Total
20% AFFORDABLE HOUSING FUND
REVENUES FISCAL YEAR 2002-03
$
2,967,649
253,000
249,895
9,000,000
$ 12,470,544
Fund Balance, July 1, 2002
Tax Increment Revenue
Interest Income
2. Proposed Expenditures of the Agency
$ 1,663,480
741,912
71,300
Total $ 2,476,692
As indicated above, the Agency should receive approximately $3.7 million in total revenue for
2002/03 (prior to pass-throughs other expenditures). The Budget document provides a detailed
account of the expenditures of the Agency for Program 930 (Capital Projects) 950 (Debt Service)
and Program 960 (Affordable Housing). The charts below provide a summary overview of the
proposed expenditures along with an explanation of each item for each fund. The budget assumes
$9 million in tax exempt bond proceeds:
CONSOLIDATED 80% CAPITAL PROJECTS (FUND 930)
RDA DEBT SERVICE FUND (FUND 950)
EXPENDITURES FISCAL YEAR 2002-03
Fiscal Year available revenues
Less Expenditures:
Agency Administration
Agency overhead paid to Town
COP Lease Payments
Interest on Town Advance
1992 COP Debt Service
2002 COP Debt Service (Estimated Partial Payment 2002/03)
Pass Through Payments To Taxing Entities
Redevelopment Projects and Implementation
$ 12,470,544
199,934
313,700
249,895
196,850
250,000
290,000
1,391,440
6,833,034
Total Expenditures $ 9,724,853
PAGE 4
MAYOR AND TOWN COUNCIL/CHAIR AND BOARD MEMBERS
SUBJECT: REDEVELOPMENT AGENCY BUDGET
April30, 2002
20% AFFORDABLE HOUSING FUND
EXPENDITURES FISCAL YEAR 2002-03
Fiscal Year Available Revenues
Less Expenditures
Agency Administration
Agency Overhead Paid to Town
Affordable Housing Projects
Explanation of Expenditure Items:
$ 2,476,692
63,500
79,400
Total Expenditures $ 142,900
• Pass thru payments to taxing entities: When the Agency was created in 1991, tax sharing
agreements were negotiated with educational entities, the open space district and the County.
These payments, based on the amount of tax increment the Agency receives, go to these entities
to relieve them of any financial burden that the Redevelopment Plan may cause them.
• 1992 COP Bond Payments for Parking Lot #4: The Town bonded for approximately $2.5 million
in 1992 to finance the construction of the parking garage on Lot #4. Redevelopment Agency tax
increment is used to pay the debt service on the bond.
• 2002 COP Bond Payments for RDA Capital Projects: These payments are for the principal and
interest on a proposed bond issue of approximately $9 million net proceeds to be used on RDA
infrastructure projects in the Project Area.
• Agency Administration: This pays for the day to day operations of the Agency including salary
and benefits of staff, supplies and materials, consultant assistance and the like.
• Overhead Charges paid to the Town of Los Gatos: The Agency is a separate legal entity from the
Town, however, requires support services from the Town. This expenditure reimburses the
Town for such items as office space, utilities, financial functions and, most significantly, the staff
time that various members of the Town staff devote to redevelopment activities.
Redevelopment Projects and Affordable Housing Projects: These are the funds spent directly,
or indirectly, on projects to implement the Redevelopment Plan. They are outlined below for
each program.
Proposed Expenditures on Projects from 80 Percent Capital Projects Fund
The following is a summary of the proposed expenditures for capital projects for year 2002/03. The
Budget document tables provide a detailed explanation of the projects and expenditures:
PAGE 5
MAYOR AND TOWN COUNCIL/CHAIR AND BOARD MEMBERS
SUBJECT: REDEVELOPMENT AGENCY BUDGET
April 30, 2002
SUMMARY OF CAPITAL PROJECTS EXPENDITURES FY 2002/03
Town Plaza Renovations $ 911,034
Downtown Beautification 3,350,000
Project Area Improvements - Street Reconstruction 1,492,000
Verizon/Post Office/Downtown Parking Improvements 800,000
Alley Improvements 250,000
Fairview Plaza Pedestrian Path Improvements 30,000
Total Expenditures $ 6,833,034
Proposed Expenditures from 20 Percent Fund on Affordable Housing Projects
The Agency is in the process of developing an Affordable Housing Strategy, consequently, there are
no specific projects for which funds are now targeted. It is expected that the strategy will be adopted
by fall 2002 and the Agency will begin pursuing specific projects. Should funding be required for
a project in 2002/03, staff would return to the Agency for a budget adjustment. Administrative costs
and Town overhead expenses from this fund for FY 2002/03 total approximately $144,000.
It should be noted that under Redevelopment Law requires an agency to spend down its housing fund
to certain levels within certain time -frames. Over the next few years the Agency will need to
undertake one or more projects in order to begin to spend these funds. In the past the Agency has
spent funds on the Miles Ave. affordable housing project and the Habitat for Humanity house on
Charles St. However, now that the Agency has significant revenue, we will be able to undertake
other projects. The Affordable Housing Strategy will present a number of alternatives for use of
these funds.
3. Proposed Indebtedness to be Incurred by the Agency
In the past the Los Gatos Redevelopment Agency has incurred debt in two ways. First, it has
obtained loans from the Town and then repaid the loans with tax increment revenue. Second, it has
undertaken the obligation of paying the debt service on the 1992 COP's used to finance the
construction of Parking Lot #4. This obligation will remain until 2012, unless it is refinanced or paid
off prior to that date.
The Agency is now at a point where it has significant tax increment revenues and a number of
significant projects to implement. In many cases, redevelopment agencies issue tax exempt bonds
when they are in similar situations. The Agency is now considering issuing the first phase of tax
exempt bonds providing approximately $9 million of net proceeds to finance key infrastructure
projects called for in the Redevelopment Plan. The proposed bonding is a separate item on the
agenda, but the proposed $9 million of bond proceeds and their intended uses are included in this
proposed budget. Any refinement of these estimates will be done through budget adjustments at the
time bonds are sold in FY2002-03.
1
PAGE 6
MAYOR AND TOWN COUNCIL/CHAIR AND BOARD MEMBERS
SUBJECT: REDEVELOPMENT AGENCY BUDGET
April 30, 2002
4. Proposed Work Program for the Coming Year
The Agency is proposing an aggressive work program for the coming year. This is made possible
with the staffing of the Redevelopment Agency and the Department of Parks and Public Works as
well as with anticipated funding for projects. The following is an outline of the proposed work
program for FY 2002/03
• Consider issuing Redevelopment Agency tax exempt bonds to fund projects
• Complete Town Plaza renovation
Complete Phase I of the Downtown Beautification project including constructing new sidewalks
and bulb -outs on Santa Cruz Ave.
• Reconstruction of specified streets in the Project Area.
• Reconstruction of specified alleys in the Project Area
• Parking improvements in the Downtown area including reconstructing the VerizonBus Depot
lots to provide public parking
• Implementation of Parking Management Program with new parking zones throughout the
Downtown and increased enforcement
• Completion of banner program report for Downtown and Los Gatos Blvd. and the installation
of banners
• Adoption of the Redevelopment Agency Affordable Housing Strategy and initiation of one or
more affordable housing projects
• Implementation of the Los Gatos Economic Vitality Program
• Implementation of a program to enhance the Los Gatos auto sales environment
• Effective administration of the Redevelopment Agency including all reporting and financial
management
5. Explanation of the Previous Year's Achievements
FY 2001/02 was a year in which the foundation was laid in order to begin an aggressive
redevelopment implementation program. The following is a summary of key achievements for the
period:
• Filled full-time Redevelopment Manager (December 2001) position to implement redevelopment
program
• Filled Parks and Public Works Director (October 2001) and Town Engineer (January 2002)
positions which will be key in implementing public infrastructure projects in the Redevelopment
Project Area
• Amended, restated and reviewed the Agency's AB 1290 Five Year Implementation Plan
• Initiated the reconstruction of Town Plaza in order to become the focal point of the Downtown
• Initiated the reconstruction of sidewalks and intersection improvements along Santa Cruz Ave.
• Initiated the implementation of the Downtown Parking Management Plan
• Initiated the process to implement a new banner program in the Downtown and along Los Gatos
Blvd.
• Initiated actions to enhance the auto sales business in Los Gatos
• Prepared a draft Economic Vitality Program (pending Council review or input)
PAGE 7
MAYOR AND TOWN COUNCIL/CHAIR AND BOARD MEMBERS
SUBJECT: REDEVELOPMENT AGENCY BUDGET
April 30, 2002
• Updated tax increment projections for the Agency and prepared a draft Financing Plan in order
for the Agency to consider issuing tax exempt bonds to finance key projects
• Council approval of the construction of a Habitat for Humanity house on Charles Ave. for a low
income family
Completion of 12 very low income rental units on Miles Ave.
• Assisted in the acquisition of two key properties on Fiesta Ave. adjacent to the Civic Center
• As required by law, filed the Statement of Indebtedness with the County and the Annual Report
with the State Controller's Office
• Completed Los Gatos business survey
• Initiated memberships in key Redevelopment and Economic Development Associations
• Initiated preparation of a draft Affordable Housing Strategy to implement programs using the
Agency's 20 percent Affordable Housing Set -Aside funds.
CONCLUSION:
The Los Gatos Redevelopment Agency's FY 2002/07 Budget fulfills Redevelopment Law
requirements by outlining revenues, expenditures and indebtedness while explaining the work
program for the coming year and the previous year's achievements. The Budget implements an
aggressive work program to complete key redevelopment projects in the Downtown area, begin
affordable housing projects using 20 percent set -aside funds, and initiates an Economic Vitality
Program for the Town. The programs should serve to implement the adopted Redevelopment Plan,
Five Year Implementation Plan and eliminate blight and further upgrade and enhance the Project
Area in and around the Downtown. In addition, Economic Vitality efforts should enhance revenues
to the Town and stimulate business activity.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
The Redevelopment Agency Budget is based on tax increment revenues that the Agency receives.
It is projected that the Agency will have a revenue stream of approximately $20 million (present
value) during its 30 year remaining life. As a separate item, the Agency will determine the method
to finance projects and may consider issuance of tax exempt bonds.
Attachments:
1. Preliminary 2002/07 Redevelopment Agency Budget
N:\DEV 1Marty1ydabudgetcouncilreport(1). wpd
TOWN OF LOS GATOS
The Los Gatos Redevelopment Agency
for
Fiscal Year July 1, 2002 to June 30, 2007
Town Council
Randy Attaway Mayor
Sandy Decker .Vice Mayor
Steve Blanton .Council Member
Steven Glickman Council Member
Joseph Pirzynski .Council Member
Prepared under the direction of
Debra De Mattei Figone .Town Manager
Stephen D. Conway Finance and Administrative Services Director
110 E. Main Street, P.O. Box 949, Los Gatos, CA 95031
www.town.los-gatos.ca.us
The Los Gatos
Redevelopment Agency
Fiscal Year 2002-07
Proposed
Redevelopment Agency Budget
Table of Contents Page
Tab One
Review of Los Gatos Redevelopment Agency Budget 1
Tab Two
RDA Capital Projects - Fund 930 2
Tab Three
RDA Debt Service - Fund 950 3
Tab Four
RDA Low Moderate Housing - Fund 960 4
Tab Five
Project Worksheets 5
Downtown Streetscape Improvements 5-1
Redevelopment Project Area Street Reconstruction Downtown 5-2
Town Plaza Renovations 5-3
Redevelopment Project Area alley Improvements 5-4
Downtown Parking Improvements 5-5
Fairview Plaza Pedestrian Path Improvements 5-6
The Los Gatos
Redevelopment Agency
Fiscal Year 2002-07
Proposed
Redevelopment Agency Budget
Table of Contents Page
Tab One
Review of Los Gatos Redevelopment Agency Budget 1
Tab Two
RDA Capital Projects - Fund 930 2
Tab Three
RDA Debt Service - Fund 950 3
Tab Four
RDA Low Moderate Housing - Fund 960 4
Tab Five
Project Worksheets 5
Downtown Streetscape Improvements 5-1
Redevelopment Project Area Street Reconstruction Downtown 5-2
Town Plaza Renovations 5-3
Redevelopment Project Area alley Improvements 5-4
Downtown Parking Improvements 5-5
Fairview Plaza Pedestrian Path Improvements 5-6
RDA Capital Projects
All Programs in Fund 930
FUND 930
STATEMENT OF SOURCE AND USE OF FUNDS
SOURCE OF FUNDS
Beginning Fund Balance
Restricted
Unrestricted
Total Beginning Fund Balance
Revenues
Interest Income
Other Sources / Bond Proceeds
Total Revenues
Operating Transfers
Transfers from RDA Debt Service
Total Operating Transfers
TOTAL SOURCE OF FUNDS
USE OF FUNDS
Expenditures
Salaries and Benefits
Operating Expenditures
Capital Projects
Internal Service Charges
Total Expenditures
Operating Transfers
Transfer to RDA Debt Service
Total Operating Transfers
Ending Fund Balance
Restricted
Unrestricted
Total Ending Fund Balance
00/01
Actuals
550,431
01/02
Adjusted
01/02
Estimated
1,481,964 1,481,964
550,431 1,481,964 1,481,964
179,426
63,158
242,584
1,968,500
1,968,500
49,400
1,304
02/03
Proposed
37,100
9,000,000
50,704 9,037,100
363,759
363,759
$ 2,761,515 $ 1,481,964 $ 1,896,427 $ 9,037,100
661,316
421,385
1,082,701
196,850
196,850
1,481,964
1,481,964
66,220
319,000
4,784,934
5,000
64,400
381,427
1,446,900
3,700
125,700
377,200
6,833,034
10,734
5,175,154 1,896,427 7,346,668
(3,693,190)
(3,693,190)
1,690,432
1,690,432
TOTAL USE OF FUNDS $ 2,761,515 $ 1,481,964 $ 1,896,427 $ 9,037,100
REDEVELOPMENT CAPITAL PROJECTS
Town Plaza Renovations 911,034
Downtown Beautification 3,350,000
Project Area Improvements -Street Reconstruction 1,492,000
Verizon/Post Office /Downtown Parking Improvements 800,000
Alley Improvements 250,000
Fairview Plaza Pedestrian Path Improvements 30,000
TOTAL 6,833,034
Town Plaza Renovation
Program 930-0107
00/01 01/02 01/02 02/03
Actuals Adjusted Estimated Proposed
REVENUES
Other Sources
Bond Proceeds
Operating Transfers
1,700,000
TOTAL REVENUES 1,700,000
EXPENDITURES
Capital Projects
82001 Engineering Design
82002 Construction 12,314 1,639,934 728,900 906,034
82003 Construction Management - - 5,000
Total Capital Projects 12,314 1,639,934 728,900 911,034
TOTAL EXPENDITURES 12,314 1,639,934 728,900 911,034
Street Reconstruction Downtown
Program 930-0217
00/01 01/02 01/02 02/03
Actuals Adjusted Estimated Proposed
REVENUES
Other Sources
Bond Proceeds
Operating Transfers
- 2,650,000
TOTAL REVENUES 2,650,000
EXPENDITURES
Capital Projects
82001 Engineering Design
82002 Construction - 1,110,000 468,000 1,492,000
82003 Construction Management
Total Capital Projects 1,110,000 468,000 1,492,000
TOTAL EXPENDITURES 1,110,000 468,000 1,492,000
Downtown Streetscape Improvements
REVENUES
Other Sources
Bond Proceeds
Operating Transfers
Program 930-0233
00/01 01/02 01/02 02/03
Actuals Adjusted Estimated Proposed
3,600,000
TOTAL REVENUES 3,600,000
EXPENDITURES
Capital Projects
82001 Engineering Design
82002 Construction 9,670 1,560,000 250,000 3,350,000
82003 Construction Management
Total Capital Projects 9,670 1,560,000 250,000 3,350,000
TOTAL EXPENDITURES 9,670 1,560,000 250,000 3,350,000
Downtown Parking Improvements
Program 930-0336
00/01 01/02 01/02 02/03
Actuals Adjusted Estimated Proposed
REVENUES
Other Sources
Bond Proceeds
Operating Transfers
800,000
TOTAL REVENUES 800,000
EXPENDITURES
Capital Projects
82001 Engineering Design
82002 Construction
82003 Construction Management
Total Capital Projects
800,000
800,000
TOTAL EXPENDITURES - 800,000
Fairview Plaza Pedestrian Path Improvements
Program 930-0341
00/01 01/02 01/02 02/03
ActuaIs Adjusted Estimated Proposed
REVENUES
Other Sources
Bond Proceeds
Operating Transfers
TOTAL REVENUES
EXPENDITURES
Capital Projects
82001 Engineering Design
82002 Construction - 30,000
82003 Construction Management - - -
Total Capital Projects - 30,000
TOTAL EXPENDITURES - 30,000
Alley Reconstruction
Program 930-0344
00/01 01/02 01/02 02/03
Actuals Adjusted Estimated Proposed
REVENUES
Other Sources
Bond Proceeds - 250,000
Operating Transfers
TOTAL REVENUES 250,000
EXPENDITURES
Capital Projects
82001 Engineering Design
82002 Construction
82003 Construction Management
Total Capital Projects
250,000
250,000
TOTAL EXPENDITURES 250,000
RDA Debt Service
Program 9501/9502/9503/9504
FUND 950
STATEMENT OF SOURCE AND USE OF
FUNDS
00/01
Actuals
SOURCE OF FUNDS
Beginning Fund Balance
Restricted
Unrestricted (135,123) 182,677
01/02
Adjusted
Total Beginning Fund Balance (135,123) 182,677
Revenues
Property Tax
Lease Income - COPS
Interest Income
Other Sources
Total Revenues
3,232,042
266,325
144,470
19,269
3,117,350
3,662,106 3,117,350
Operating Transfers
Transfer from General Fund
Transfer from COPS 421,723
Tax Increment - Low/Mod Housing (714,223) (536,320)
Tr/From RDA Capital Projects 196,850
Tr/From RDA Low/Mod Housing
Total Operating Transfers (95,650) (536,320)
01/02
Estimated
182,677
182,677
3,407,651
252,580
81,510
6,600
3,748,341
363,759
(681,530)
67,814
(249,957)
02/03
Proposed
1,717,736
1,717,736
3,709,561
249,895
215,900
4,175,356
(741,912)
(741,912)
TOTAL SOURCE OF FUNDS $ 3,431,333 $ 2,763,707
USE OF FUNDS
Expenditures
Operating Expenditures
Interest Town Admin Loan
Debt Service - COPS Lot 4
Lease Payment for COPS Lot 4
Debt Service - 2002 COPS
Total Expenditures
Operating Transfers
Transfer to RDA Debt Service
Total Operating Transfers
Ending Fund Balance
Restricted
Unrestricted
Total Ending Fund Balance
$ 3,681,061 5 5,151,180
550,657 816,200
196,850
266,325 252,600
266,324 -
1,280,156 1,068,800
1,968,500
1,968,500
182,677 1,694,907
182,677 1,694,907
897,536
196,850
252,600
252,580
1,599,566
363,759
363,759
1,717,736
1,717,736
1,391,440
196,850
250,000
249,895
290,000
2,378,185
2,772,995
2,772,995
TOTAL USE OF FUNDS $ 3,431,333 $ 2,763,707 $ 3,681,061 $ 5,151,180
RDA Low/Moderate Housing
Program 9601
FUND 960
STATEMENT OF SOURCE AND USE OF FUNDS
SOURCE OF FUNDS
Beginning Fund Balance
Restricted
Unrestricted
Total Beginning Fund Balance
Revenues
Interest Income
Total Revenues
00/01 01/02 01/02 02/03
Actuals Adjusted Estimated Proposed
1,007,520 1,418,614
1,418,614 1,663,480
1,007,520 1,418,614 1,418,614 1,663,480
91,367 75,020
40,000 71,300
91,367 75,020 40,000 71,300
Operating Transfers
Tax Increment @ 20% 714,223 536,320 613,716 741,912
Total Operating Transfers 714,223 536,320 613,716 741,912
TOTAL SOURCE OF FUNDS $ 1,813,110 $ 2,029,954 $ 2,072,330 $ 2,476,692
USE OF FUNDS
Expenditures
Salaries and Benefits 45,629 11,500 31,400
Operating Supplies 144,496 145,400 86,350 109,500
Grants 250,000 310,000 310,000
Internal Service Charges 3,372 1,000 2,000
Total Expenditures 394,496 504,400 408,850 142,900
Operating Transfers
Transfer to RDA Debt Service
Total Operating Transfers
Ending Fund Balance
Restricted
Unrestricted
Total Ending Fund Balance
1,418,614 1,525,554
1,663,480 2,333,792
1,418,614 1,525,554 1,663,480 2,333,792
TOTAL USE OF FUNDS $ 1,813,110 $ 2,029,954 $ 2,072,330 $ 2,476,692
DOWNTOWN STREETSC DE IMPROVEMENTS - REDEVELOPMEI`TT AGENCY FUNDED
PROJECT DESCRIPTION
This project will fund several downtown beautification improvements consistent with the approved Streetscape Master Plan
for Santa Cruz Ave. Specifically, these include landscape and pedestrian improvements at each of the intersecting streets
between Main St. and Highway 9 (7 intersections) and Main St. at University Ave. and College Ave. (2 intersections). In
addition this project will include the replacement of sidewalks along both sides of Santa Cruz Ave. from Almendra Ave. to
Bean Ave. This project is consistent with the Central Los Gatos Redevelopment Plan.
FUND: 930 - RDA
CATEGORY: Streets and Signals
RESPONSIBLE DEPT: Parks and Public Works
PROJECT MANAGER: Director of Parks and Public Works
PROJECT STATUS: Active
PROJECT: 930 - 0233 PPW #: 02 - 33
GENERAL PLAN LINKAGE: Community Design Implementation
Strategy 4.14
ENVIRONMENTAL DETERMINATION: Categorically Exempt
FUNDING SOURCE
SOURCE OF FUNDS
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDEDCARRY
FUNDS THRU
2002
OVER
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
930 - RDA
$1,560,000
$250,000
$1,310,000
$2,040,000
$3,350,000
EXPENDITURE SCHEDULE
USE OF FUNDS
ACCT
NUMBER
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDED
FUNDS THRU
2002
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
Engineering Design
82001
Construction
82002
$1,560,000
$250,000
$3,350,000
$3,350,000
Construction Management
82003
TOTAL
$1,560,000
$250,000
$3,350,000
$3,350,000
ANNUAL ESTIMATED OPERATING BUDGET IMPACT
TOTAL
PERSONNEL
OPERATIONS & MAINTENANCE
OTHER COSTS
OFFSETTING SAVINGS
NET IMPACT
PROJECT NOTES
Funding shown reflects the full project. Project scope is currently under evaluation. Final programming for FY 02-03 will be
determined.
5-1
REDEVELOPMENT PROJEC '2EA STREET RECONSTRUCTION DOS 'OWN - REDEVELOPMENT AGENCY
PROJECT DESCRIPTION
This project funds the continuation of the Town's annual Street Resurfacing Program within the Redevelopment Project
Area. The goal is to increase the overall Pavement Condition Index (PCI) from 64 to 75. The work performed will consist of
a balanced program of Street Reconstruction and Pavement Overlays, with supplemental ongoing maintenance activities
performed by the Town's Parks and Public Works department staff. This project is consistent with the Central Los Gatos
Redevelopment Plan.
FUND: 930 - RDA
CATEGORY: Streets and Signals
RESPONSIBLE DEPT: Parks and Public Works
PROJECT MANAGER: Director of Parks and Public Works
PROJECT STATUS: Active
PROJECT: 930 -0217 PPW #: 02-17
GENERAL PLAN LINKAGE: Transportation Element Policies 1.2
and 1.4
ENVIRONMENTAL DETERMINATION: Categorically Exempt
FUNDING SOURCE
SOURCE OF FUNDS
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDED
FUNDS THRU
2002
CARRY
OVER
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
930 - RDA
$1,110,000
$468,000
$642,000
$850,000
$450,000
$450,000
$432,000
$432,000
$3,256,000
EXPENDITURE SCHEDULE
USE OF FUNDS
ACCT
NUMBER
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDED
FUNDS THRU
2002
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
Engineering Design
82001
Construction
82002
$1,110,000
$468,000
$1,492,000
$450,000
$450,000
$432,000
$432,000
$3,256,000
Construction Management
82003
TOTAL
$1,110,000
$468,000
$1,492,000
$450,000
$450,000
$432,000
$432,000
$3,256,000
ANNUAL ESTIMATED OPERATING BUDGET IMPACT
TOTAL
PERSONNEL
OPERATIONS & MAINTENANCE
OTHER COSTS
OFFSETTING SAVINGS
NET IMPACT
PROJECT NOTES
Project implementation will be coordinated with underground infrastructure improvements to be implemented by other
agencies and the Town. It will follow streetscape improvements and infrastructure work and so timing may be adjusted.
5-2
TOWN PLAZA RENOVATIONS
PROJECT DESCRIPTION
This project will fund the renovation of the Town Plaza and Santa Cruz Ave./Broadway/Montebello Way intersection in
accordance with the approved Plaza and Downtown Streetscape Master Plan.
FUND: 930
CATEGORY: Parks Program
RESPONSIBLE DEPT: Parks and Public Works
PROJECT MANAGER: Director of Parks and Public Works
PROJECT STATUS: Active
PROJECT: 930 - 0107 PPW #: 01 - 07
GENERAL PLAN LINKAGE: Community Design Element
Implementing Strategy 4.14
ENVIRONMENTAL DETERMINATION: Categorically Exempt
FUNDING SOURCE
SOURCE OF FUNDS
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDED
FUNDS
2002
CARRY
OVER
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
930 - RDA
$1,639,934
$728,900
$911,034
$911,034
EXPENDITURE SCHEDULE
USE OF FUNDS
ACCT
TOTAL BUDGETED
EXPENDED
THRU
2002
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
Engineering Design
82001
$0
$220,000
Construction
82002
$906,034
$468,900
$906,034
$906,034
Construction Management
82003
$5,000
$40,000
$5,000
$5,000
TOTAL
$911,034
$728,900
$911,034
S911,034
ANNUAL ESTIMATED OPERATING BUDGET IMPACT
TOTAL
PERSONNEL
OPERATIONS & MAINTENANCE
OTHER COSTS
OFFSETTING SAVINGS
NET IMPACT
PROJECT NOTES
Plaza reconstruction began March 25, 2002 to be completed in September, 2002.
5-3
REDEVELOPMENT PRO -'T AREA ALLEY IMPROVEMENTS - R.' VELOPMENT AGENCY FUNDED
PROJECT DESCRIPTION
This project will fund the reconstruction of several alleys in the Redevelopment Project Area. These include alleys in the
Almond Grove neighborhood and the alleys located between Loma Alta and Johnson Ave. This project is consistent with
the Central Los Gatos Redevelopment Plan.
FUND: 930 - RDA
CATEGORY: Streets and Signals
RESPONSIBLE DEPT: Parks and Public Works
PROJECT MANAGER: Director of Parks and Public Works
PROJECT STATUS: Active
PROJECT: 930-03xx PPW #: 03-xx
GENERAL PLAN LINKAGE:
ENVIRONMENTAL DETERMINATION: Categorically Exempt
FUNDING SOURCE
SOURCE OF FUNDS
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDED
FUNDSTHRU
CARRY
OVER
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
930 - RDA
$250,000
$250,000
EXPENDITURE SCHEDULE
USE OF FUNDS
ACCT
NUMBER
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDED
FUNDS THRU
2002
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
Engineering Design
82001
Construction
82002
$250,000
$250,000
Construction Management
82003
TOTAL
$250,000
$250,000
ANNUAL ESTIMATED OPERATING BUDGET IMPACT
TOTAL
PERSONNEL
OPERATIONS & MAINTENANCE
OTHER COSTS
OFFSETTING SAVINGS
NET IMPACT
PROJECT NOTES
This project will be phased to improve alleys meeting certain criteria, including alleys where consensus for the Town to
improve the alleys is reached among the residents. Additionally, once further geological and topological analysis is
obtained, staff will determine alleys that could be competed during FY 02-03.
5-4
DOWNTOWN PA - 'KING IMPROVEMENTS - REDEVELOP] NT AGENCY FUNDED
PROJECT DESCRIPTION
This project will fund improvements to the Verizon and Bus Depot parking lots to make them available for public parking
for downtown businesses. These improvements are called out in the Downtown Parking Management Plan and are
consistent with the goal of providing additional parking downtown per the Central Los Gatos Redevelopment Plan. In
addition, improvements to Parking Lot #6 and other parking improvements to the downtown will be accomplished.
FUND: 930 - RDA
CATEGORY: Streets and Signals
RESPONSIBLE DEPT: Parks and Public Works
PROJECT MANAGER: Director of Parks and Public Works
PROJECT STATUS: Active
PROJECT: 930-0336 PPW #: 03 - 36
GENERAL PLAN LINKAGE:
ENVIRONMENTAL DETERMINATION: Categorically Exempt
FUNDING SOURCE
SOURCE OF FUNDS
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDED
FUNDS THRU
2002
CARRY
OVER
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
930 - RDA
$800,000
$800,000
EXPENDITURE SCHEDULE
USE OF FUNDS
ACCT
NUMBER
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDED
FUNDS THRU
2002
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
Engineering Design
82001
$70,000
$70,000
Construction
82002
$700,000
$700,000
Construction Management
82003
$30,000
$30,000
TOTAL
$800,000
S800,000
ANNUAL ESTIMATED OPERATING BUDGET IMPACT
TOTAL
PERSONNEL
OPERATIONS & MAINTENANCE
OTHER COSTS
OFFSETTING SAVINGS
NET IMPACT
PROJECT NOTES
This project will add additional parking spaces to the downtown area.
5-5
E VIEW PLAZA PEDESTRIAN PATH IMP VEMENTS
PROJECT DESCRIPTION
This project will resurface the pedestrian pathway that is known as the Turnstyle Walkway, located parallel and adjacent
to Pennsylvania Avenue between West Main Street and Fairview Plaza. The pathway is currently in poor condition;
resurfacing will provide enhancement as well as pathway improvements.
FUND: 410 - Grants and 930 - RDA
CATEGORY: Streets and Signals
RESPONSIBLE DEPT: Parks and Public Works
PROJECT MANAGER: Director of Parks and Public Works
PROJECT STATUS: New
PROJECT: 410-03xx/930-03xx PPW #: 03-xx
GENERAL PLAN LINKAGE:
ENVIRONMENTAL DETERMINATION: Categorically Exempt
FUNDING SOURCE
SOURCE OF FUNDS
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDED
FUNDS THRU 2002
CARRY
OVER
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
410 - Grants
$22,695
$22,695
930 - RDA
$30,000
$30,000
TOTAL
S52,695
S52,695
EXPENDITURE SCHEDULE
USE OF FUNDS
ACCT
NUMBER
TOTAL BUDGETED
FUNDS THRU 2002
EXPENDED
FUNDS THRU
2002
FY 02-03
FY 03-04
FY 04-05
FY 05-06
FY 06-07
5 YEAR
TOTAL
Engineering Design
82001
Construction
82002
$52,695
$52,695
Construction Management
82003
TOTAL
S52,695
S52,695
ANNUAL ESTIMATED OPERATING BUDGET IMPACT
TOTAL
PERSONNEL
OPERATIONS & MAINTENANCE
OTHER COSTS
OFFSETTING SAVINGS
NET IMPACT
PROJECT NOTES
Staff have applied for Transportation Development Act (TDA) Article 3 guaranteed funds to reimburse the Town for a
majority of this project's cost, the remainder to be RDA funded.
5-6
Town Council Minutes May 6, 2002
Redevelopment Agency Los Gatos, California
REDEVELOPMENT AGENCY FINANCING PLAN CONT.
Motion by Mr. Glickman, seconded by Mrs. Decker, to authorize staff and the Town's Financial
Consultants to analyze the refinancing of the 1992 COP's for Parking Lot #4 as part of the issuance,
and if the analysis shows financial benefit to the Agency, that refinancing documents be prepared.
Carried unanimously.
Motion by Mr. Glickman, seconded by Mrs. Decker, to authorize the Town Manager/Executive
Director to enter into an agreement with Jones Hall, (Bond Counsel) in an amount not to exceed
$60,000 to be paid for from bond proceeds. Carried unanimously.
Motion by Mr. Glickman, seconded by Mrs. Decker, that Council adopt Resolution 2002-68
entitled, RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
DECLARING INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS
OF OBLIGATIONS TO BE ISSUED BY THE TOWN AND DIRECTING CERTAIN
ACTIONS. Carried unanimously.
LOS GATOS HIGH SCHOOL POOL:
CounciVAgency consensus to agree to providing partial funding ($300,000) for the reconstruction
of the Los Gatos High School Pool for the community's benefit in concept only until agreements are
finalized and brought back to Council. Staff to study and evaluate what the Town can afford within
a contract. Town to take a strong move toward finding a way in which to accomplish this funding
that will benefit and enhance both entities. Carried unanimously.
LOS GATOS REDEVELOPMENT AGENCY/BUDGET FOR 2002-07/HEARING (02.09&27)
Marty Woodworth, Town's Redevelopment Agency Manager, gave an overview of the proposed
budget noting: The anticipated revenues of the Agency; The proposed expenditures of the Agency;
The proposed indebtedness to be incurred by the Agency; The work program for the coming year;
and an explanation of the previous year's achievements.
Motion by Mrs. Decker, seconded by Mr. Blanton, to close the public hearing. Carried
unanimously.
Council/Agency consensus to accept the staff report and recommendations concerning the
Preliminary 2002-07 Los Gatos Redevelopment Agency Budget
Debra Figone, Town Manager, noted that the final budget would return to the Council and Agency
in June for adoption.
CAPITAL IMPROVEMENT PROGRAM FOR 2002-07 (CIP) (03.09)
John Curtis gave an overview of the proposed Capital Improvement Program budget.
Speakers from the audience:
Ray Davis, resident, spoke in support of televised programming of council meetings remaining in
the CIP.
Marc Jensen, thanked Council for supporting paved sidewalks and pedestrian improvements at
crosswalks.
No one else from the audience addressed this issue.
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