Item 10 Staff Report 1999-00 First Quarter Budget ReportCOUNCIL AGENDA REPORT
DATE: December 1, 1999
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT:
MEETING DATE: 12/6/99
ITEM NO.
1�
1999-00 FIRST QUARTER BUDGET REPORT
A. ACCEPT 1999-00 FIRST QUARTER BUDGET REPORT
B. AUTHORIZE BUDGET ADJUSTMENTS AS HIGHLIGHTED IN THE FISCAL
IMPACT SECTION
C. ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AMENDMENT TO EXISTING AGREEMENT WITH WILLDAN & ASSOCIATES
D. ADOPT RESOLUTION AMENDING POLICE TRAINEE COMPENSATION FOR
FISCAL YEAR 1999-2000
RECOMMENDATION:
1. Accept 1999-00 first quarter budget report
2. Authorize budget adjustments as highlighted in the fiscal impact section
3. Adopt resolution authorizing the Town Manager to execute an amendment to existing agreement with Willdan &
Associates
4. Adopt resolution amending police trainee compensation for Fiscal Year 1999-2000
BACKGROUND:
This is a status report on the 1999-00 general fund revenues and expenses for the first quarter ending September 30,
1999. Revenues are compared to the first quarter of the prior year. Several significant sources are distributed by other
Agencies on a quarterly basis, therefore it is not unusual for these categories to appear dramatically under budget.
Expenditures for salaries and benefits are based on 26 pay periods a year, six payrolls were expenses for the first quarter.
DISCUSSION:
Fiscal Year 1999-00 Revenues - The 1999-00 adopted budget was $18,966,580. During the first quarter Council
improved increase of $11,620 bringing the total adopted to $18,978,200. The following tables shows a favorable
comparison between the current fiscal year first quarter actual revenues and the same time period for the prior year. A
detailed revenue analysis will be included in the mid -year report, first quarter receipts do not generate enough
information for trends and analysis.
PREPARED BY: MICHELE BRAUCHT' )
Finance Director
MB:pg
MGR158 N:\MGR)IWP\99-00QTR.WPD
Reviewed by: Attorney Revised: 12/2/99 2:03 PM
Reformatted: 7/14/99
PAGE 2
MAYOR AND TOWN COUNCIL.
SUBJECT: 1999-00 FIRST QUARTER BUDGET REPORT
December 1, 1999
REVENUE CATEGORY
1999-00
1999-00
I 1998-99
ADOPTED
1ST QTR ACTUAL $
SALES & USE TAX
$ 5,932,900
$ 1,408,800
$ 1,329,100
PROPERTY TAX
`$ 3,518,400
$ 83,800
$ 7,900
LICENSES & PERMITS
$ 1,772,800
$ 212,200
$ 243,500
SERVICE CHARGES
$ 2,604,200
S 592,200
$ 460,700
INTERGOVERNMENTAL
$ 1,771,600
$ 519,200
$ 472,500
INTEREST INCOME
$ 777,300
$ 270,500
$ 211,700
TRANSIENT OCCUPANCY TAX
$ 735,000
$ 244,400
$ 137,300
FRANCHISE FEES
$ 770,600
$ 65,000
$ 57,300
FINES & FORFEITURES
S 422,600
$ 124,200
$ 78,500
OTHER SOURCES
$ 116,200
$ 84,100
$ 120,700
PROPERTY TRANSFER TAX
$ 210,000
$ 69,100
$ 49,300
CONSTRUCTION TAX
S 10,000
$ 1,600
FUND TRANSFER
$ 336,600
$ 142,800
$ 41,300
TOTAL REVENUE
S 18,978,200
$ 3,817,900
$ 3,209,800
Seventy five percent of the adopted revenue budget is generated by the following seven sources. The table is significant
in that it lays out the various payment schedules that are observed by these revenue sources. With the exception of
sales tax, these revenues are not received by the Town prior to the end of the mid- year.
Significant Sources
Sales Tax
Property Tax
Motor Vehicle in Lieu
Interest Income
Transient Occupancy Tax
Business License Fee
Franchise Fee
Total Significant Sources
Total On -going Revenue
Adopted % of Total
1st Qtr
Budget Revenue Receipts
$ 5,932,900
$ 3,518,400
$ 1,366,500
$ 777,300
$ 735,000
$ 1,050,000
$ 770,600
$14,150,700
$18,978,200
31%
19%
7%
4%
4%
6%
4%
$1,408,800
$ 83,800
$ 375,700
$ 270,500
$ 244,400
$ 59,000
$ 65,000
75% $2,507,200
Payment Dates
Month Delay
Dec & April
Month Delay
Accrual
Month after Qtr
Jan -Feb
Month Delay & May
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: 1999-00 FIRST QUARTER BUDGET REPORT
December 1, 1999
Fiscal Year 1999-00 Expenditures- The following table shows the adopted budget as of July 1 1999, revisions that
were approved during the first quarter, the revised budget, and the actual expenses (paid or encumbered) during the
first quarter of the 1999-00 fiscal year.
Category Adopted 99-00 Quarter Revisions Revised 9/30/99 Actual Expense % Expended
Salaries & benefits $ 12,899,200 $ (195,700) $ 12,703,500 $ 2,487,100 20%
Materials & supplies $ 3,220,600 $ 286,400 $ 3,507,000 $ 1,448,100 41%
Internal Service Charges $ 2,700,600 $ $ 2,700,600 $ 632,700 23%
Infra -structure Improvements $ 70,000 $ $ 70,000 $ - 0%
Transfers $ 10,000 $ - $ 10,000 $ _ 0%
Capital purchase $ 60.000 $ (19,200) $ 40,800 $ 41,300 101%
Total $ 18,960,400 $ 71,500 $ 19,031,900 $ 4,609,200 24%
Salaries and benefits - Based upon six paid payrolls, salaries and benefits are slightly below the anticipated levels of
23%. This is primarily due to:
- vacant positions
- fully benefitted positions being filled by temporary staff
- tuning of semi-annual cash outs in December and June
Materials & supplies - the actual expenses for the first quarter are a combination of payments to vendors and
outstanding purchase orders (which encumber funds throughout the end of the fiscal year for specific services). The
following table shows the make-up of the $1,448,100 expended:
Payments issued to vendors
Outstanding purchase orders
Total funds committed as of 9/30/99
$ 518,600
$ 929,500
$1,448,100
Internal Service Charges - The 1999-00 operating budget includes $2,700,700 for Internal Service Charges. These
charges range from funding the equipment replacement fund, to financing payments for the Town's self insurance plan.
The following table lists the Internal Service Funds , the 1999-00 budget and the actual expenses to date. At 23% these
charges are on target.
Adopted 1999-00 Actual Expenses 9/30/99 % Expended
Vehicle Maintenance Fund $ 413,600 $ 103,400 25%
Management Information Services $ 514,000 $ 93,300 18%
Self Insurance - ABAG $ 544,400 $ 128,900 24%
Equipment Replacement $ 581,000 $ 145,200 25%
Building Maintenance Fund $ 647,700 $ 161,900 25%
Total $ 2,700,700 $ 632,700 23%
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: 1999-00 FIRST QUARTER BUDGET REPORT
December 1, 1999
The following table presents the budget and expenses year to date for fiscal year 1999-00 by departments:
Department Adopted 99-00 Quarter Revisions Revised 9/30/99 Actual Expense
Treasurer $ 54,800 $ $ 54,800 $ 9,500
Council $ 64,700 $ $ 64,700 $ 13,000
Clerk $ 276,400 $ 1,100 $ 277,500 $ 56,700
PPW-Engineering $ 408,500 $ 25,900 $ 434,400 $ 310,300
Attorney $ 312,400 $ $ 312,400 $ 66,400
PPW-Admin $ 559,200 $ (11,000) $ 548,200 $ 168,600
Community services $ 665,200 $ 6,100 $ 671,300 $ 143,400
PPW-Inspection $ 633,200 $ 15,200 $ 648,400 $ 117,500
Non -departmental $ 713,300 $ (1,700) $ 711,600 $ 84,100
Manager $ 1,347,500 $ 500 $ 1,348,000 $ 274,900
Library $ 1,408,100 $ 10,800 $ 1,418,900 $ 306,500
PPW-Streets $ 1,586,300 $ 1,700 $ 1,588,000 $ 424,500
PPW-Parks $ 1,507,300 $ 1,100 $ 1,508,400 $ 331,500
Planning $ 1,626,100 $ - $ 1,626,100 $ 546,700
Police $ 7.797.400 $ 21,800 $ 7,819.200 $ . 1,755,600
Total $ 18,960,400 $ 71,500 $ 19,031,900 $ 4,609,200
Department Requests:
% Expended
17%
20%
20%
71%
21%
31%
21%
18%
12%
.20%
22%
27%
22%
34%
22%
24%
Library Department - An increase of $16,000 for materials and supplies. This is fully funded by a matching increase
in the allocation from the State Library Fund.
Engineering Services - An increase of $100,000 to augment the budget for contract engineering services. Contract
services are necessary to complete the unusually large volume of capital improvement projects that are under way.
Additionally contract services are being used in place of a Town Engineer.
Parks and Public Works Department - $35,000 is requested for increased contractual services. Scott Baker, Director
of Parks and Public Works, will leave the Town's service as of December 7 to take a new position with the City of
Pleasaton, CA. The increase would supplement the existing Parks and Public Works budget to fund the interim Parks
and Public Works Director services on a contractual basis through the remainder of the fiscal year if needed. Scott
Alman of Willdan Associates, who is currently under contract as Town Engineer, will assume the Interim Parks and
Public Works Director duties, and Sharon Ranch of Willdan Associates will replace Scott Alman as Town Engineer.
A resolution amending the existing agreement with Willdan Associates for these services is attached to this report.
Recruitment for the Parks and Public Works position is already underway.
Engineering Development - An increase of $ 30,000 . This request is a direct result of the high volume of annexation
issues during the first quarter of the fiscal year.
Community Development Department - An increase of $ 52,900. This increase is for two items. $17,800 for
congestion management fees, and $35,100 for professional planning consulting services to assist with the transition
in Directors for the department.
Town Manager - A replenislunent of $16,500 for the Managers contingency fund. These Rinds were transferred to the
Police Department for the purchase of a radar trailer.
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: 1999-00 FIRST QUARTER BUDGET REPORT
December 1, 1999
Personnel Services - Ine�ase Range 710, Class Code 4851 (Police Trainee)as follows:
9
Effective 12/13/98 Step 1 From $.80 to 21.83; and j en'f
,7
Effective 12/26/99 Step 1 From $21.83 to $22.33 ..."/
Step 1 from $ 23.80 to $ 21.83._ This classification has only one step - after completion of the training, the employee
moves to the Police Officer classification. This change reflects the recent pay adjustments provided to Police Officers
net of that portion related to paying their own Public Employee's Retirement System contribution.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
The 1999-00 general fund operating budget is estimated to end the fiscal year with $3,700 in fund balance. Council
policy designates these funds for infra -structure improvements.
Source of Funds:
1999-00 On -Going Revenue $ 18,978,200
Managers Contingency Fund $ 16,500
1998-99 Carryforward $ 115,000
Reimbursement - Booking Fees $ 80,000
State Library Fund - Increase $ 16,000
Business Licenses Increase $ 29,000
General Plan Update $ 51,300
Total Source of Funds $ 19,286,000
Use of Funds:
1998-99 Approved Expenses $ 19,031,900
Current requests for increase:
Refund Manager's Contingency $ 16,500
Contract Engineering Services $ 100,000
Interim PPW Director $ 35,000
Annexation Costs $ 30,000
Library Materials & Supplies $ 16,000
Congestion Management Fees $ 17,800
Profession Planning Consulting $ 35,100
$ -
Total use of funds $ 19,282,300
Estimated year end balance $ 3,700
Attachments:
1. Resolution authorizing the Town Manager to execute amendment to existing agreement with Willdan &
Associates
2. Resolution amending Police Trainee compensation for Fiscal Year 1999-2000
RESOLUTION NO.
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE AN AMENDMENT TO EXISTING
AGREEMENT WITH WILLDAN & ASSOCIATES FOR ENGINEERING CONSULTANT
SERVICES
WHEREAS, the Town has an existing agreement with Willdan & Associates to provide
certain professional engineering services, and
WHEREAS, the Town desires to amend the professional services provided by Willdan
& Associates as shown in Exhibit A,
RESOLVED, that the Town Manager of the Town of Los Gatos is authorized to
execute an amendment as provided in Exhibit A.
PASSED AND ADOPTED at a meeting of the Town Council of the Town of
Los Gatos, California, held on the day of , 199_ by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
N:1MGR\JWPIFINANCEIWILLDAN1.WPD ATTACHMENT I
EXHIBIT A
The Consultant's Scope of Work is amended to include:
Interim Director of Parks and Public Works Director: Scott Alman, Willdan & Associates,
will provide interim Director of Parks and Public Works services including oversight and direction
of the Engineering Division of the Town.
The Consultant's Schedule of Charges is amended as follows:
Classification Hourly Billing Rate
Interim Director of Parks and Public Works Director $100.00
Town Engineer (Unspecified Personnel) $80.00
N:IMGRUWPIFINANCE112699RES. WPD
RESOLUTION NO.
RESOLUTION OF THE TOWN OF LOS GATOS
AMENDING POLICE TRAINEE COMPENSATION
FOR FISCAL YEAR 1999-2000
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Police Officer Trainee compensation be amended as presented in
Exhibit A.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the
COUNCIL MEMBERS:
AYES:
NAYES:
ABSENT:
ABSTAIN:
ATTEST:
SIGNED:
day of December, 1999 by the following vote:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
N:\MGR\GROGERS\CNF\COUNCIL\COMPRES0.991PTRNRESO.599
ATTACHMENT .2__
Position
Police Officer Trainee
EXHIBIT A
TOWN OF LOS GATOS
RANGE STEP TABLE
Police Officer Trainee
Range
710
Effective December 13, 1998
RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
710 $ 21.83
Effective December 26, 1999
RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
710 $ 22.33
N:\MGR\GROGERS\CNF\COUNCIL\COMPRESO.99\POLTEMP.DEC