Item 18 Staff Report Consider Report on Community Forums on Town's Financial FutureCOUNCIL AGENDA
DATE: 2/6/95
ITEM NO. 18
DESK ITEM
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: February 6, 1995
TO: MAYOR AND TOWN COUNC
FROM: TOWN MANAGER
SUBJECT: CONSIDER REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
A. AUTHORIZE STAFF TO PREPARE AN ORDINANCE ESTABLISHING A 2%
UTILITY USERS' TAX FOR GAS, ELECTRIC, TELEPHONE, WATER, AND CABLE
TELEVISION WITH THE FOLLOWING PROVISIONS:
(1) A $3,000 ANNUAL CAP ON THE TOTAL TAX ANY ONE SUBSCRIBER
WOULD PAY ON SERVICE FROM EACH UTILITY
(2) THE REVENUE IS FOR GENERAL OPERATING AND CAPITAL
IMPROVEMENT EXPENDITURES
(3) THE UTILITY USERS' TAX IS REDUCED FROM 2% TO 1.5% AFTER FIVE
YEARS
(4) THE UTILITY USERS' TAX IS ELIMINATED IN TWENTY YEARS
B. AUTHORIZE STAFF TO WORK WITH THE COUNTY REGISTRAR OF VOTERS
TO SCHEDULE AN ADVISORY VOTE FOR LOS GATOS RESIDENTS
C. PRESENT PROPOSED ORDINANCE AND ELECTION SCHEDULE ON MARCH
6, 1995 '
RECOMMENDATION:
Pull this item from the agenda.
BACKGROUND:
Staff is beginning to receive revised 1994 gross sales data from the various utilities. This new information
will alter the fiscal analysis since 1993 data was used in preparing this report. Staff will return with new
revised information when the analysis is complete.
PREPARED BY: MARK UNDER
Assistant Town anager
ML:pm Revised: 2/6/95 2:43 pm
MGRO80 A:\CNCLRPTS\2-6-5. DES
Reviewed by:
Attorney Clerk
COUNCIL ACTION/ACTION DIRECTED TO:
asurer
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: FEBRUARY 1, 1995
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
COUNCIL AGENDA
DATE: 2/6/95
ITEM NO. / g
SUBJECT: CONSIDER REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
A. AUTHORIZE STAFF TO PREPARE AN ORDINANCE ESTABLISHING A 2%
UTILITY USERS' TAX FOR GAS, ELECTRIC, TELEPHONE, WATER, AND CABLE
TELEVISION WITH THE FOLLOWING PROVISIONS:
(1) A $3,000 ANNUAL CAP ON THE TOTAL TAX ANY ONE SUBSCRIBER
WOULD PAY ON SERVICE FROM EACH UTILITY
(2) THE REVENUE IS FOR GENERAL OPERATING AND CAPITAL
IMPROVEMENT EXPENDITURES
(3) THE UTILITY USERS' TAX IS REDUCED FROM 2% TO 1.5% AFTER FIVE
YEARS
(4) THE UTILITY USERS' TAX IS ELIMINATED IN TWENTY YEARS
B. AUTHORIZE STAFF TO WORK WITH THE COUNTY REGISTRAR OF VOTERS
TO SCHEDULE AN ADVISORY VOTE FOR LOS GATOS RESIDENTS
C. PRESENT PROPOSED ORDINANCE AND ELECTION SCHEDULE ON MARCH
6, 1995
RECOMMENDATION:
1. Authorize staff to prepare an ordinance establishing a 2% utility users' tax for gas, electric,
telephone, water, and cable television with the following provisions:
a. A $3,000 annual cap on the total tax any one subscriber would pay on service from each
utility
b. The revenue is for general operating and capital improvement expenditures
b. The utility users' tax is reduced from 2% to 1.5% after five years
c. The utility users' tax is eliminated in twenty years
2. Authorize staff to work with the County Registrar of Voters to schedule an advisory vote for Los
Gatos residents
3. Present proposed ordinance and election schedule on March 6, 1995.
PREPARED BY: MARK UNDER, Assistant Town Manager
ML:pm
MGR080 A:\CNCLRPTS\2-6-5
Revised: 2/2/95 2:39 pm
Reviewed by:
Attorney Clerk Finance -� , Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: CONSIDER REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
FEBRUARY 1, 1995
BACKGROUND:
Staff identified a projected annual operating deficit of $500,000 beginning in Fiscal Year 1995-96 and growing
to $1,000,000 in 1999-2000 during an October 1993 financial alternatives study session. Council asked staff
to conduct a series of community forums to present the Town's financial future and receive public comment
on the alternatives.
Six forums were conducted in July through September 1994. Three focus groups composed of community
leaders were conducted in June. Over 220 Los Gatans participated. Forum participants opposed any
significant service reductions and supported economic development as the preferred method for generating
additional revenues so long as it does not degrade the special character of Los Gatos. Forum participants
supported a utility users' tax if a new revenue had to be generated.
Council held a public hearing on the forum results on October 17. Following the hearing Council asked
staff to prepare a report addressing the following:
a) possible expenditure reductions in overhead or costs for services
b) possible savings by contracting for services
c) utility users' tax
d) a more focused economic development program
e) financing capital projects including a conference center, street repairs, and a new library
f) a more focused lobbying strategy to oppose further State take-aways
A report on these issues was presented at the Council's January 7 workshop and is attached to this report.
There were mixed reactions to a possible utility tax. Staff agreed to return with updated financial projections
and a specific proposal. Staff also recommends an advisory election on the utility users' tax. It is too late
for a Spring election, but a Fall 1995 election is possible and the results could be implemented in January
1996.
DISCUSSION:
Financial Projections
The most recent financial projections are attached. They have been adjusted to show development at the
85/17 site beginning to produce revenue during Fiscal Year 1998-99. The projections show a $402,684
deficit for Fiscal Year 1995-96. This deficit grows to $631,584 if no one-time money is used. The projected
annual deficit peaks at $1,120,961 in Fiscal Year 1997-98 and begins to decline with the arrival of the
assumed 85/17 development revenues. However, even with the additional $1 million annually from this
development, the deficit is projected to be $713,682 in Fiscal Year 1999-2000. There will be additional fine
tuning as budget decisions near, but the projections will not change drastically.
Capital Improvement Projects
Beyond the projected operating budget deficits, the Town has an inadequate capital improvement program.
Street resurfacing and repairs, civic center repairs, park renovations, retaining walls are just some of the
languishing capital projects. While redevelopment funds may eventually fund some of this infrastructure
repair, these funds can only be used in the redevelopment area and are not sufficient to address even the
Town's minimal needs.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: CONSIDER REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
FEBRUARY 1, 1995
Financial Flexibility
The projected deficits and lack of capital funds also reduce Council flexibility to respond to creative new
ideas or new problems. The Town does not have any venture capital, and one-time money has been used
to shore up annual deficits. While the use of one-time money has diminished from $964,000 to $301,880
in 1994-95, it is still being used rather than invested in capital improvements.
New Revenues
This information was presented to the public in the community forums and focus groups. Reduced service
was not a popular option. Increasing revenues through economic development was the preferred
alternative. This is a good long term solution. A strong local economy will strengthen the Town's ability to
provide quality municipal services.
The Town has taken several initial steps to improve the local economy. A contract with the Downtown
Association has improved the image and appearance of the downtown. Town funding of the Los Gatos
Boulevard vision process has been indispensable to its initial success. Commercial zoning of 40 acres at
highways, 85/17 should produce additional revenue. The Town Manager's individual meetings with business
owners are producing positive goodwill. Town staff is working with the Chamber of Commerce on various
projects including a visitor's information center.
These efforts will help build a strong and high quality local economy, but not overnight. A recent
Association of Bay Area Governments (ABAG) regional economic report shows a steady, but slow economic
growth over the next five years. Retail sales are expected to grow at an annual rate of 3.7% in 1995 and
3.1% in 1996. Median personal income is projected to grow by 1.6% in 1995 and 1.8% in 1996. While the
region is coming out of the recession, it is recovering more slowly than previous post recession periods.
The 85/17 commercial development is several years away. A coordinated business retention and
recruitment effort is just now getting under way.
During the interim, quality municipal services must continue. Recent studies show that providing quality
municipal services is more important than tax incentives in retaining and attracting businesses. Good
streets, lighting, police services, sewers, schools, parks, recreation, etc. are all vital if a community is to be
a good place to work and live.
Staff is proposing a short term utility users' tax as an interim solution. A 2% utility users' tax on gas, electric,
telephone, water, and cable would produce $1,243,460 annually in today's dollars. These funds could be
used for both capital and operating expenditures. Staff is recommending that the tax be reduced to 1.5%
after five years and eliminated after twenty years.
This utility users' tax would help close the operating budget gap, but more importantly would provide a
needed source of capital improvement funds. Staff is preparing a list of needed capital improvements as
an addendum to the 1995- 2000 Capital Improvement Budget. $8 million could be raised using $800,000
per year for twenty years of the utility tax as debt service.
If $800,000 were devoted to capital improvement projects, $443,460 would remain for the operating budget.
These revenues would also provide a hedge on inflation.
Cable television has been added to the traditional gas, electric and telephone because the current franchise
fee does not cover wireless cable. Water has been added because the Town does not collect any franchise
fees from San Jose Water Company.
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: CONSIDER REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
FEBRUARY 1, 1995
The impact of this utility users' tax on a Los Gatos resident with a monthly gas and electric bill of $150,
telephone bill of $100, a water bill of $30, and cable bill of $30 is $6.20 per month.
Election
Although a utility users' tax does not require an election, conducting an advisory election is consistent with
the Town's tradition of community participation. If the Council votes to proceed with preparation of the
ordinance and conducting an advisory election, staff will work with the County registrar of voters to select
the best date. Turnout would be higher if other items are on the ballot. Staff will also work up the costs
for such an election. The current budget has $5,000 for an election.
Expenditure Reductions
Department heads are looking at how to reduce their budgets by 4% for next year. The January 7 report
discusses several reduction issues. The organization has been reduced over the past few years. A $500,000
reduction will further impact municipal services. With a fall election the earliest a utility users' tax could be
implemented is January. Therefore, the Fiscal Year 95-96 budget has to be prepared without this revenue.
Specific expenditure reductions, user fees, and other revenue ideas will be presented to Council at the
March 27, 1995 operating budget study session.
ENVIRONMENTAL ASSESSMENTS:
Preparing an ordinance for a utility users' tax is not a project subject to CEOA.
FISCAL IMPACT:
Staff projects using $228,900 of one-time funding to reduce the budget shortfall in 1995-96 to $402,684. The
shortfall will increase over the next five years. Although good economic development activities are beginning
to happen, a short-term operating budget solution is needed. A combination of service cuts and new
revenues are needed. The proposed utility users' tax will minimize the service reductions and provide an
important new source for needed capital improvements. In today's dollars a 2% utility users' tax on
telephone, gas, electric, water, and cable will generate $1,243,460 in additional annual revenue.
Attachments
1. January 7 Council Workshop Report
2. Revenue and Expenditure Projections 1994-95 through 1999-2000
TOWN OF LOS GATO$
COUNCIL AGENDDA REPO T
DATE: January 5, 1996
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT: REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
COUNCIL AGENDA
DATE: 1/7/94
ITEM NO. C. 1.
.ATT/.CE-[NE\ T
BACKGROUNQ:
Staff presented revenue and expenditure projections through Fiscal Year 1999-2000 at the October 11 and
November 8. 1993 financial alternatkes study sessions. These projections suggested that reducing staff and
restructuring produced a relatively stable budget for Fiscal Year 1994-95, twt that problems will begin to
develop in Fiscal Year 1995-96 and an annual operating deficit of dose to $1 million will occur by Fiscal Year
1999-2000, even assuming commercial development at the intersection of Highways 85 and 17.
At Council request, staff conducted six community forums between July and September 1994. The
community forums conducted at various locations provided the public an opportunity to learn of the long-
term fiscal situation and to propose alternatives. Three focus groups of community leaders with diverse
opinions met in June 1994 to help plan the agenda and the presentation for the' community forums. More
than 220 Loa Gatans actively participated in the focus groups and community forums. Results were
presented in a public hearing before Council on October 17, 1994. Several citizens testified at the public
hearing.
Forum results and testimony presented at the public hearing showed the following:
► Citizens do not want additional service cuts. Los Gatans were generally satisfied with Town services.
However, further savings by contracting for services, departmental consolidations and productivity
improvements need to be pursued.
► Landscape and lighting districts, assessment districts and parcel taxes were not seen as viable revenue
generating alternatives.
► if new revenue is needed, a utility user's tax was supported by most participants. A cap for large users
and a sunset clause were also suggested.
► Economic deveioprnent was the number one choice to replace Town revenues seized by the State, but
economic development must be balanced with the quality of our neighborhoods and must be
accomplished without damaging our community values.
► Some Interest was expressed In financing large capital projects such as street repairs and resisting
State take-aweys was expressed.
PREPARED BY: MARK UNDEM,'Aistant Town Manager
ML: pm
MGR090 A\CNCt. TS\1-7-1
Reviewed by: Attorney Clerk Finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
ATTACHMENT i
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
January 5, 1996
Council directed staff to return with additional information and recommendations on:
1. Possible savings by merging existing departments and more contracting for services
2. A utility users tax on gas, electric or phone service that includes a cap
3. A more focused economic development strategy
4. Financing of capital proiecta such as street repairs
5. A lobbying strategy to oppose further State take-aways and unfunded State and Federal mandated
Management staff at its annual strategic planning worirshop identified facilities and infrastructure
Improvements as a high priority, These Include street repair, storm drain repair, sidewalk repair,
underground ng utilities, and civic center renovations. This priority corresponds with Council members'
concern regarding Town capital improvements and will be addressed in the discussion section of this report.
DISCUSSION:
The community expressed support for the current level of Town services and a desire to maintain these
services through economic development activities. The suggested actions are an effort to comprehensrveiy
address this direction.
Economic development without damage to community ambiance emerged as the preferred strategy for long
term financial heath. Economic development that produces consistent revenues for the Town and does not
disacfvactage the neighborhoods takes time and money. Current economic development activities indude
streamlining Planning and Building/Engineering services, supporting the Los Gatos Downtown Association,
holding individual meetings with business leaders, pursuing an active customer service program, supporting
the Los Gatos Boulevard Community Alliance and the Los Gatos Boulevard vision process, and zoning to
attract commercial development. These are ail exciting activities and are beginning to produce results.
Sales tax and business license tax revenues are at an aid time high. Business and residents are actively
participating in the Downtown Association and the Boulevard Community Alliance. Staff is also active in
the Joint Venture Silicon Valley Economic Development Roundtable.
Missing from the current program is a focused business recruitment and retention program, financing of
infrastructure knprovements such as parking, street and sidewalk repairs, public/private Joint ventures to
develop key parcels, a strategy for additional housing to support the commercial development, and an
assurance that vital public services MI be sustained. Also the plans developed by the Boulevard visioning
processing will need further financial support as will the Downtown streetscape and beautification plans.
Staff recommends developing and implementing a focused economic development strategic plan that
includes:
Establishing a special economic development account to encourage economic development activities
such as the recent Los Gatos Boulevard vision process, support of Downtown commercial activities and
support of an active recruitment and retention program. The account would be between $300,000 and
$400,000.
PAGE 3
MAYOR ANO TOWN COUNCIL
SUBJECT: REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
January 5, 1996
► Deveioprng a business recruitment and retention task force that includes representatives from the Town,
Chamber of Commerce, Downtown Associatkxn, Boulevard Community Alliance, Board of Realtors,
residents, and schod districts. The task force would identify types of businesses to recruit and
implement strategies to recruit them. The task force wil also consider business retention activities.
• Integrating redevelopment activities with an overaiF economic development program. Many of the
redevelopment protects win improve the economic climate of the Town through infrastructure
mprovements, beautification protects, housing programs and various financing strategies.
Develop strategies and actions to encourage a mix of businesses that generate sales tax, business
license tax or transient occupancy tax.
Utility User's Tax
Payoff from a focused economic development program will take from three to five years. Selective use of
a utility users tax can insure the stability of Town services and provide a funding mechanism for Important
capital Improvements. Staff proposes developing a utility user's tax ordinance that has the following
elements:
• 2.5% tax on electric and gas with a S2500_annuaf cap and a five vear sunset provision. This 2.5% tax
would generate an estimated $700,000 per year in 1996-96 and approximately $900,000 per year by
1999-2000.
► A 3% tax on telephone with a S3.000 annual cap and a 20 year sunset, This tax would be dedicated
to capital protects. This 3% tax would generate approximately $600,000 anrujalfy and allow the Town
to borrow and pay beck $6 to $7 million over a 20 year period. The money could be used to repair
streets, underground utilities and other worthy capital Improvement protects that would enhance
economic vitality. Specific protects would be considered as part of the 1996-2000 Capital Improvement
Project budget.
Neither of these utility user taxes requires an election. However, if an advisory election is desired it could
be held in November 1996 with specific Council action to place the matter on the ballot no later than May
1, 1996. Coprai needs to vote to have an election at least 180 days prior to the date of the election. May
1 Is more than 180 days from the November election date.
Other Capital I mnrovement Financing Strateoi
There are other strategies than could be used to finance specific protects such as parking or infrastructure
improvements in the redevelopment area. The Town has very low debt and a very high credit rating. As
a result, the Toau,►'s cat for borrowing money is very low. For example, a method to fund additional parking
in dowtt1 without using tax revenues would be to refinance the existing parking assessment district debt,
Instal meters an a portion of the municipal lots and dedicate the revenues from the meters to maintenance
and financing payments. Staff estimates that meters on the upper levels of the current lots would generate
over S600,000 per year. Debt service for a lot sinner to Paring Lot 4 Is $253,000 per year. The assessment
district is important to guarantee bond payment if the meters are eliminated in the future or fall to generate
anticipated revenues. if Council le interested in exploring this approach, staff will present the concept to the
Parking Commission for a recommendation.
The Los Gatos Redevelopment Agency can use tax increment bond financing to pay for many important
improvements in the central business district. Redevelopment money is also used to improve the Town's
moderate and low income housing stock.
PAGE 4
MAYOR ANC TOWN COUNCIL
SUBJECT: REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
January 5, 1996
General obligation bonds are repaid through a levy on property. $20 million could be raised wim a S57 per
$100.000 of assessed value levy on property. A general obligation bond requires an election and a two-
thirds vote.
Staff estirnatee that street, sidewalk and storm drain repair, civic center renovation, an additional parking
garage and underground ng ail utilities In Town would cost around $40 million. A combination of
utlkV user's tax, perking assessment bonds and general obligation bonds could accomplish
this ambitious program. if there is interest in pursuing a major capital knprovement program, staff would
prepare more precise cost estimates and a complete analysis of financing alternatives.
n _!tuts Reductions
Community forum participants did not support further reductions In services. However, there was interest
In exploring additional efficiencies and productivity improvements. Council asked staff to look at further
consolidation of departments, contracting for services and providing our services to other agencies where
mutually beneficial.
Staff believes additional savings can be found in scrutinizing ail non -departmental coats such as utilities,
insurance and various contracts for services. Recent installation of energy -saving lights will save $30,000
annually. The audit contract is scheduled to go out to bid this year and savings may result. These and
other non -departmental eo pendlture reductions could yieid $50,000 to $75,000 per year. Staff will evaluate
various non -departmental expenses and include possible reductions in the proposed 1996-96 budget
Consolidating Building/Engineering with Parks, Forestry & Maintenance into a Public Works Department
or the consolidating Planning and Building & Engineering into a Community Development Department
would produce mused results. The savings are limited to having one less department head. The Town does
not have any employee who's only Job is to supervise. Ail our Supervisors spend the
working on essential Town activities. The Parks, Forestry & Maintenance Director, for exammajority of their ore
ple, is the staff
support to the Paris Commission, the Trails & Bikeways Committee, the Bicycle Advisory Sub -Committee,
the Downtown Association Beautification Committee, and the Los Gatoe Creek Trail Inter -Agency Committee.
He writes the agenda staff reports for his department, coordinates street repair activities with the Police
Department, responds to citizen complaints and concerns, manages the Animal Control Program, runs the
BI-ant# Terminal (B(T) Program. and manages the maintenance portion of our Non -Point Source Program.
Hs also menages 5 open space, landscaping and lighting districts with the citizen participation involved in
that may, manages all maintenance capital improvement projects, coordinates special events in the parks
and on the trails, supervises the substantial volunteer effort on behalf of our parks and trails, is the staff
support to the Open Space District, and among a large number of other activities, locks up the building after
Town Card meetings. Considenng that a Department Head costs approximately 1096-15% more than a
senior staff member, he savings from eiiminating a Department Head would be rather small. As the Town
needs to mains further staff reductions, the Manager w1 propose specific reductions as pert of the proposed
budged.
Currently the Town contracts for custodian services, tree trimming, street resurfacing, and engineering
services. These contracts have saved the Town over $100,000 per year. Contracting with the Sheriff for
poke services is the only prospect that could produce $600,000 to $1 million annually based on the cost
to Cupertino for the Sheriffs services. Cupertino's costs are approximately $4 miiikm and the Town's are
$5 miion. However, The Taws receives considerably more services especially crime prevention, school
liaison, itwestigations and participation of a large number of volunteers. The Town is proud of its Police
Department and there Is no support for contracting with the Sheriff.
PAGE 5
MAYOR ANO TOWN COUNCL
SUBJECT: REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
January 5, 1986
Ccrtracting for attorney services has been mentioned. Examinations of this question shows that k will coat
the Town more to contract for services than to have an in-house attorney. For example, Cupertino's
attorney services cost the same as the Town's, but Cupertino has a three-quarter time attorney and must
pay an additions $125 per hour after the 30 hours a week is exceeded. The Town also benefits by having
the in-house attorney review activities in progress which limits future litigation. Morgan HW recently switched
from a contract attorney to ail_ in-house attorney to reduce litigation coats.
Focused Lobbying Effort
Further State take-aways and unfunded State and Federal mandates still loom in the future. The State's
economic picture is improving, but a S7 billion dollar debt looms for Fiscal Year 1966-96.
Pushing more mandates down to local government without funds will continue to be a method to reduce
the Federal or State budget without increasing taxes.
Community forum participants recognized this threat and recommended that the Town collaborate with
other cities to oppose these actions. Staff has taken several actions to develop a more coilaborath'e and
focused lobbying strategy. First, an intern was assigned to evaluate ail State legislation for impact on the
Town. This work is complete and the results provide a good foundation for future lobbying activities.
Second, the Town has invested in City Link. This is a service of the League of California Citie& it enables
Town staff to have immediate access to status of ail legislation. It also provides Email link to ail
pertldpeting dries. Many California cities are on City Link. The Town acutely participates in other League
of Calitomia Cities' programs. Planning Commissioner Abkin and the Town Manager are on the League's
Revenue and Taxation Committee, Larry Todd chairs the Police Chiefs' Department, and Regina Falkner
chairs the Community Services Department.
Third, the Town Is an active participant with Joint Venture Silicon Valley's Tax and Fiscal Policy Committee.
The Tax and Fiscal Policy committee is a public/private alliance that examines the impact of state and
federal legislation and takes coordinated action. Recent efforts by this body helped keep the 1994-96 raids
to a mirumu n.
Fourth, the Town Is active r the Santa Clara County Cities Association. The Cities Association coordinates
legislative lobbying by informing cities of pending legislation and recommending specific actions to be taken.
Finally, the Town is a member of PERS PAC. This Is a coalition of public agencies participating In PERS.
Much of the legislation that impacts the Town's finances relate to PERS retirement policy. PERS PAC has
a lobbying staff in Secramen6o and sends out bulletins to participating clues. PERS PAC has already been
helpful In stopping abuses of the PERS system and opposing costly golden handshake plans.
To provide more focus to these efforts, staff will consult with League of Cities staff and develop a plan for
presentation to Council and to the Santa Clara County Cities Association. Staff will also continue to be
active in the above organization&
PAGE 6
MAYOR AND TOWN COUNCIL
SUBJECT: REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
January 5, 1906
SUMMARY AND INCLUSION:
Actions to assure the Town's financial future are nearing completion. This report recommends an WINO
economic development program, development of an ordinance for a short term utility user's tax to enhance
the iong term economic development efforts, conefderatk n of other capital improvement financing strategies
and a more focused and coordinated lobbying effort at the state and federal level. Staff also recommends
areas for possible coat savings. The report does not recommend further contracts for services or
departmental consolidations. The report does not recommend any significant service cuts. Participants ,n
the community forums on the Town's financial future supported economic development in harmony with
new a utility user's tax, certain capital improvements and no significant cuts in current Town
services.
ENVIRONMENTAL ASSESSMENT$:
This report is not a pro4ect subject to CEQA.
FISCAL I M PACT:
The results of the community forums, the October 17 public hearing and the recommendations in this report
do not Impact the Town's Fiscal Year 1994-96 operating budget However, the Town does face a protected
revenue shortfall of $530,700 beginning In Fiscal Year 1996-96. This gap grows to a protected $955,800
by Fiscal Year 1999-00. The recommendations address this gap and reflect opinions of those participating
in the community forum process.
Distribution;
Jae Abel
296 Garden HI Drive
Los Gatos, CA 96030
Mike Abkin
122 El Oihrar
Los Gatos, CA 96030
Norman Abrahams
208 Montclair Roed
Los Gatos, CA 96030
Nei Anderson
204 Cerro Chico
Los Gatos, Cat 96032
BM Ark
117 Belwood Gateway
Los Gatos, CA cliscia9
Frank Argo
119 Anne Way
Los Gatos, CA 96032
Adu Bagley
15235 Karl Avenue
Monte Serena, CA 96030
Eva Bailey
223 Danville Drfve
Los Gatos, CA 96032
Dolores Baker
44 Broadway
Los Gatos, CA 95030
Dru Barth
18237 Constitution Ave
Los Gatos, CA 96030
Jo Bartlett
166 Oak Hill Way
Los Gatos, CA 96032
Steve Bartow
154 Kensington Way
Los Gatos, CA 96032
B 1 & Anne Biklwitz
170 Lester Lane
Los Gatos, CA 95032
Toni Biackatock
15561 Benedict Lane
Los Gatos, CA 96032
Roberta Blake
17155 Pine Avenue
Los Gatos, CA 96032
Mary Nice
484 Woodland #43
Los Gatos, CA 96030
Jennifer Borusrda
1 N Santa Cruz Ave
Los Gatos, CA 96030
Mari( Brodsky
17306 Grosvenor
Los Gatos, CA 96030
PAGE 7
MAYOR AND TOWN COUNCIL
SUBJECT: REPORT ON COMMUNITY FORUMS ON TOWN'S FTNANGAL FUTURE
January 5, 1996
Daie Bryant
Los Gatos Weekly Times
PO Box 339
Los Gatos, CA 96031
Susan Buxton
118 Robin Way
Los Gatos, CA 96032
Dan & Joleen Calidear
209 Highland Terrace
Los Gatos, CA 96032
Hugh & Rachel Chisum
14530 Blossom Hill Road
Los Gatos, CA 96032
Beth Cliker-Smith
c/o Cliker Orchards
1631 Wiiiow Street, #225
San Jose, CA 96125
Cal Claus►
126 Cal. Largo
Los Gatos, CA 96030
Victor Coilord
399 Nicholson
Los Gatos, CA 96030
Chuck & Judy Coe
202 Garden HW Drive
Los Gatos, CA 96030
Paul Cbmey
143 Belridge Drive
Los Gatos, CA 96032
J.D. & Kathy Cusick
163 Eastridgs Dr
Los Gatos, CA 96032
Alien Daly
14546 Eastview Drive
Los Gatos, CA 95030
Sandy Decker
201 Belmont Avenue
Los Gatos, CA 95030
Karen Deioumi
107 Aurora Lane
Los Gatos, CA 95032
Lewis Desch
16971 Frank Avenue
Los Gatos, CA 96032
Leslie Dill
220 Wider Avenue
Los Gatos, CA 96030
Diane Disbrow
17 N Santa Cruz Ave
Los Gatos, CA 96030
Jeanne Drexel
325 Harding Ave
Los Gatos, CA 96032
Bob Duici
PO Box 2346
San Jose, CA 96109
Kim Easter
207 Glenridge
Los Gatos,CA 95030
Sandy Eddy
96 Church Street
Los Gatos, CA 95032
David Egli
15883 Camino del Cerro
Los Gatos, CA 96032
Lisa Ekers
39 Reservoir
Los Gatos, CA 96032
Tom Engelman
16345 Los Gatos Blvd #23
Los Gatos, CA 96032
Messrs. Erdel
148-A Beiwood Court
Los Gatos, CA 95032
Thomas Ferrito
9 Simons Way
Los Gatos, CA 96032
Bruce Frank
507 Clearview Drive
Los Gatos, CA 96030
Marieiien Furia
16310 Camellia Terrace
Los Gatos, CA 96032
Arun Gaikwad
109 Sierra Undo
Los Gatos, CA 96030
Ken Gehrkena
3 N Santa Cruz Ave
Los Gatos, CA 95030
Mike Gibbs
239 Vista de Sierra
Los Gatos, CA 95032
Cindy GodseM
116 Loma Vista Court
Los Gatos, CA 96032
Dave Gray
5455 Camden Avenue
San Jose, CA
Alice Hansen
17611 Foster Rd
Los Gatos, CA 96032
Card Hargett.
Dolce Spazio
221 N Santa Cruz Ave
Los Gatos, CA 95030
Joe Hargett
29 E Maln St
Los Gatos, CA 96032
Ken & Beverly Houghton
16200 Kennedy Road
Los Gatos, CA 96032
Ted Hebert
114 Dardaneill Lane #20
Los Gatos, CA 96030
Dale Hill
150 Robin Way
Los Gatos, 96032
PAGE 8
MAYOR ANO TOWN COUNCIL
SUBJECT: REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
January 5, 1996
C. Hoffmann
105 Garden Hi11 Drive
Los Gatos, CA 96030
Ann Holley
116 Hiow Court
Los Gatos, CA 96032
Judy Howell
16793 Farley Rood
Los Gatos, CA 96032
Jai Huck*
300 N Santa Cruz Ave
LOG Gatos, CA 96030
Doug and Kelly Hus
53 N Santa Cruz Ave
Los Gatos, CA 96030
Egon Jensen
182 Lester Lane
Los Gatos, CA 96032
Unda Kilduff
249 Montclair
Los Gatos, CA 96030
Kay Knapp
68 Mariposa Court
Los Gatos, CA 96030
Guizizar Kristensen
206'Gregg Drive
Los Gatos, CA 96032
Sandy Lambe
108 Larga Vista Court
Los Gatos, CA 96032
Kyle Lanza
15276 Karl Avenue
Los Gatos, CA 96030
John Lein
196 College Avenue
Los Gatos. Ca 96032
G. Lemons
54 N Santa Cruz Ave
Los Gatos, CA 96030
Derek Lentz
17400 Phillips Avenue
Los Gatos, CA 96032
Dr. Tod Uklns
17421 Farley Rd Weet
Los Gatos, CA 96030-3390
Mike & April Milken
136 BeMie Drive
Los Gatos, CA 96032
Betty Mantic
308 N Santa Cruz Ave
Los Gatos, CA 96030
John McCarthy
149 El Milo
Los Gatos, CA 96030
Mike & Portia Mendenhau
136 Old Orchard Drive
Los Gatos, CA 95032
Bill Meyer
15 Oak HiiI Way
Los Gatos, CA 96032
Markin Michel
540 Roxbury Lane
. Los Gatos, CA 96030
Miles Mikasa
123 Capistrano Place
Los Gatos, CA 96030
Scott Wiener
39 Reservoir
Los Gatos, CA 96032
Colleen Miller
49 N Santa Cruz Ave
Los Gatos, CA 96030
Bob Montonye
15531 Corinne Drive
Los Gatos, CA 96032
Bob Morgan
141 Gemini Court
Los Gatos, CA 96032
Kathy Morgan
142 Wheeler Avenue
Los Gatos, CA 96032
Rex Morton
51 University, Ste 1
Los Gatos, CA 96030
Phi Nielsen
144 Blueberry HW
Los Gatos, CA 96032
Arlene Okeriund
266 Barbara Drive
Los Gatos, CA 96032
Mike Orlando
221 N Santa Cruz Ave
Los Gatos, CA 96030
Joe Pape
121 Stacia Street
Los Gatos, CA 96032
Howard & Nancy Parks
200 Jackson
Los Gatos, CA 95032
Renee Patton
326 Bella Vista Avenue
Los Gatos, CA 96032
Wes Peyton
208 Elm Wood Ct
Los Gatos, CA 96030
Harriet Pierce
72 Mariposa
Los Gatos, CA 96030
Joe Pfrzynsld
350 Los Gatos Boulevard
Los Gatos, CA 95032
Bill Quigley
103 Belridge Drive
Los Gatos, CA 95032
Bill Reese
5288 Escover Lane
San Joee, CA 95118
PAGE 9
MAYOR AND TOWN COUNCIL
SUBJECT: REPORT ON COMMUNITY FORUMS ON TOWN'S FINANCIAL FUTURE
January 5, 1996
Diane Richards
1 N Santa Cruz Ave
Los Gatos, CA 96030
Judy Richardson
LG Chamber of Commerce
PO Box 1820
Los Gatos,CA 96031
Cynthia Roetankowski
333 Johnson Avenue
Los Gatos, CA 96032
Jonathan Scanlan
227 Danville Drive
Los Gatos, CA 95032
Campbell & Joyce Scott
406 Montclair Road
Los Gatos, CA 96030
Dorothy Shattuck
116 Towne Terrace #3
Los Gatos,- CA 96030
Gary Shepcard
17 N Santa Cruz Ave
Los Gatos, CA 96030
Pete & Dianne Siemens
69 Eltenwood
Los Gatos, CA 96030
Gene R: Signor
16354 E. La Chiquita Ave
Loe Gatos, CA 96032
Bob Siutmau
119 H Ylbrook Drive
Los Gatos, CA 96032
D. Smith
56 1/2 N. Santa Cruz Ave
Los Gatos, CA 96030
Elizabeth Smith
17551 Vineland Avenue
Los Gatos, CA 96030
Shel Smith
14225 Lora Drive
Los Gatos, CA 96030
John Snelham
247 04d Adobe Road
Los Gatos, CA 96030
John Spaur
1184 Longfellow Avenue
Campbell, CA 96006
Edward Strong
115 Mary Way
Los Gatos, CA 95032
Ed & Betty Stahl
110 Twin Oaks
Los Gatos, CA 95032
James Sugai
241 Carlton Court
Los Gatos, CA 96032
Marionette Tack
329 Bachman Avenue
Los Gatos, CA 96030
Howard Theobold
125 Blossom Glen Way
Los Gatos, CA 95032
Robin Tole, Dist. Mgr
General Telephone Co
930 University Avenue
Los Gatos, CA 96030-2319
Barbra Toren
15933 Orange Blossom In
Los Gatos, CA 95032
Michael & Toni Traipani
121 Cherry Wood Court
Loa Gatos, CA 96030
Frank & Roberta Treseder
408 Bella Vista
Los Gatos, CA 96032
Morrie Trevithick
308 Westhill
Los Gatos, CA 95032
Caryl Walker
107 Callecita
Los Gatos, CA 95030
Judy Wallen
58 N Santa Cruz Ave
Los Gatos, CA 95030
Jacqueline Will lams
206 Blossom Vila Way
Los Gatos, CA 95032
Norma Williams
14840 Las Flores Lane
Los Gatos, CA 96032
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6.24% 14,979,930
2.70% 13,971,860
2.76% 13,804,310
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n:\study session \
1/6/95 2:24 PM
February 6, 1995
Los Gatos, California
CLAIM REJECTION/TOMASINE AMARAL (10C.01)
Motion by Mrs. Benjamin, seconded by Mr. Attaway, that Council reject the claim of Tomasine
Amaral filed with the Town Clerk on December 23, 1994. Carried unanimously.
PUBLIC RIGHT-OF-WAY TRANSFER/BLOSSOM HILL & ROBERTS ROAD
SANTA CLARA COUNTY TRANSFER/RESOLUTION 1995-20 (11.44)
Motion by Mrs. Benjamin, seconded by Mr. Attaway, that Council adopt Resolution 1995-20
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING TOWN MANAGER
TO ACCEPT TRANSFER OF PUBLIC RIGHT OF WAY AT BLOSSOM HILL AND ROBERTS
ROADS FROM THE COUNTY OF SANTA CLARA. Carried unanimously.
RADIOS INSTALLED ON LIGHT POLES/TRAFFIC SIGNALS/METRICOM INC.
ENCROACHMENT PERMIT AGREEMENT/RESOLUTION 1995-21 (13.28)
Motion by Mrs. Benjamin, seconded by Mr. Attaway, that Council adopt Resolution 1995-21
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AN ENCROACHMENT PERMIT AGREEMENT WITH
METRICOM, INCORPORATED FOR INSTALLATION OF RADIOS ON STREET LIGHT
POLES AND TRAFFIC SIGNALS. Carried unanimously.
STORM WATER INFILTRATION DEVICE POLICY/RESOLUTION 1995-22 (14.37)
Motion by Mrs. Benjamin, seconded by Mr. Attaway, that Council adopt Resolution 1995-22
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE MAYOR TO
SIGN THE AGREEMENT WITH THE SANTA CLARA VALLEY WATER DISTRICT IN
SUPPORT OF PART "A" OF THE STORM WATER INFILTRATION DEVICE POLICY. AND
PROHIBITING NEW INFILTRATION DEVICES IN THE PUBLIC RIGHT-OF-WAY. Carried
unanimously.
STREET RESURFACING/PROJECT 9421/GRAHAM CONTRACT/RESOLUTION 1995-23 (15.35)
Motion by Mrs. Benjamin, seconded by Mr. Attaway, that Council adopt Resolution 1995-23
entitled, RESOLUTION OF THE TOWN OF LOS GATOS ACCEPTING WORK OF GRAHAM
CONTRACTORS. INC. ON PROJECT 9421 BI-ANNUAL STREET RESURFACING AND
AUTHORIZING THE TOWN MANAGER TO EXECUTE CERTIFICATE OF ACCEPTANCE
AND NOTICE OF COMPLETION FOR RECORDING BY THE TOWN CLERK. Carried
unanimously.
CAMINO DEL CERRO 16035/ZONE CHANGE HR-1/ORDINANCE 1994 (16.09)
Motion by Mrs. Benjamin, seconded by Mr. Attaway, that Council adopt Ordinance 1994
entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING ZONING MAP NO.
127 FROM R-1:20 TO HR-1 FOR 16035 CAMINO DEL CERRO. Carried unanimously.
COMMUNITY FORUM REPORT/TOWN'S FINANCIAL FUTURE (18.06)
Mayor O'Laughlin announced that staff had removed this item from the agenda.
VERBAL COMMUNICATION
Shady Lane Development:
Diane McLaughlin, 15626 Francis Oaks Way, submitted a petition against the project suggested
at Shady Lane, and asking for Council's consideration of the issues raised.
TC: D7: MM020695
3