2026-034 - Approve Operating BudgetRESOLUTION 2026-034
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING THE FISCAL YEAR (FY) 2026-27 OPERATING BUDGET AND FY 2026-27
2030-31CAPITAL 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 2026-27 on April 20, 2026; and
WHEREAS, the Town Manager submitted to the Town Council and Finance Commission a
Proposed Five -Year Capital Improvement Program for FY 2026-27 — 2030-31 on April 20, 2026;
and
WHEREAS, the Town Council conducted a noticed public hearing on the Proposed
Operating Budget and Capital Improvement Program on May 19, 2026; 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 19, 2026; 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 19, 2026; and
WHEREAS, the Town Council continued to 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 Long -Term Community Benefit Fund
should be established in the General Fund Appropriated Reserve Fund 413, and
WHEREAS, the Town Council has directed that $3,000,000 should be transferred from the
Unassigned Fund Balance to the Long -Term Community Benefit Fund increasing Capital Project
Fund revenues by $3,000,000, and
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Resolution 2026-034 June 2, 2026
WHEREAS, the Town Council directed that the $3,000,000 should be Committed Fund
Balance for the Long -Term Community Benefit Capital Projects, and
WHEREAS, the Town Council directed estimated FY 2026-27 Internal Service Fund revenues
decreased by $1,501,257 to capture the decreased General Fund Vehicle and Equipment
Replacement charges in the same amount, and
WHEREAS, the Town Council directed estimated FY 2026-27 Internal service revenues
increase by $811,334 and the General Fund Transfer to Facility Maintenance Internal Service Fund
should be increased by the same amount to support the Facilities Program long-term needs, and
WHEREAS, the Town Council directed estimated FY 2026-27 General Fund expenditures
increase by $134,368 to capture additional contractual increases for Parks and Public Works
various maintenance agreements, and
WHEREAS, the Town Council directed estimated FY 2026-27 Internal Service Fund
expenditures increased by $335,083 for providing funding for Special Facility Projects, and
WHEREAS, the Town Council directed estimated FY 2026-27 Unassigned Fund Balance used
to balance the FY 2026-27 budget decreased from $549,322 to $6,503 surplus based on the
aforementioned revenue and expenditures changes, and
WHEREAS, the Council authorized $1,000,000 reserve use for Emergency Management
during the FY 2024-25, and
WHEREAS, it is anticipated that approximately $100,000 funding will be spent for
Emergency Management during FY 2024-25 and the rest of the budget ($963,587) was transferred
to FY 2025-26, and
WHEREAS, it is anticipated that approximately $50,000 funding will spent for Emergency
Management during FY 2025-26, and
WHEREAS, the estimated available expenditure budget balance will carry forward to FY 2026-27
Emergency Management Program budget, and
WHEREAS, the estimated $18,784,696 previously allocated funding within the Capital Program
expenditure budget will carry forward to the FY 2026-27 Capital Program Budget, with the final
carry -forward amount to be confirmed upon the close of the Fiscal Year; and
WHEREAS, the Capital Program defines the list of projects, cost estimates, funding
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Resolution 2026-034 June 2, 2026
sources, and estimated timelines for project delivery as required pursuant to the Mitigation Fee
Act (specifically Government Code Section 66002); and
WHEREAS, the Town Council directed estimated FY 2026-27 General Fund expenditures
increase by $50,000 for providing additional funding for sustaining and community grants, and
WHEREAS, an estimated $192,000 in expenditure budget and an estimated $142,000 in
revenue budget remain available in the VTA—Measure B Education and Encouragement Capital Grant
Program and are proposed to be transferred from the Capital Program to the General Fund Parks and
Public Grant Program to properly align the grant funding with its intended use, with final amounts to be
confirmed at Fiscal Year close; and
WHEREAS, on June 2, 2026, Town Council considered and reviewed the proposed 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 2026-27 fiscal year as depicted in Exhibit A
entitled "Total Town Revenues and Expenditures by Fund" including the first year (FY 2026-27) of
the Town's Capital Improvement Program budget as contained in the Town's FY 2026-27 — 2030-
31 Capital Improvement Program and the Town's Capital Improvement Plan.
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 211 day of June, 2026, by the following vote:
COUNCIL MEMBERS:
AYES: Rob Rennie, Maria Ristow, Matthew Hudes, Mary Badam , or Rob Moore
NAYS:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
TOWN CLERK OFV.E TOWN OF LOS GATOS
SIGNED:
OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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Resolution 2026-034 June 2, 2026
REVENUES
General Fund
TOTAL TOWN REVENUES AND EXPENDITURES BY FUND
FY 2026-27 Estimated FY 2026-27
Proposed Budget Recommended
Budget Revision Budget
$ 64,815,086
$ 64,815,086
Special Revenue Funds
554,802
554,802
Internal Service Funds
8,952,358
(690,193) (1)
8,262,165
Capital Project Funds (does not include carryforwards)*
3,460,439
3,000,000 (2)
6,460,439
Successor Agency Funds
3,923,926
3,923,926
TOTAL REVENUES
$ 81,706,611
$ 2,309,807
$ 84,016,418
OTHER FUNDING SOURCES
Designated One -Time Use of General Fund Unassigned Fund Balance
549,322
$ 3,000,000
3,000,000
EXPENDITURES AND TRANSFERS OUT
General Fund
Special Revenue Funds
Internal Service Funds
$ 64,974,408 $ 2,494,175 (3) $ 67,468,583
475,541 - 475,541
6,272,388 335,083 (4) 6,607,471
Capital Project Funds (does not include carryforwards) 6,454,919 6,454,919
Successor Agency Funds 3,938,045 - 3,938,045
TOTAL TOWN EXPENDITURE & OTHER FUNDING USES $ 82,215,301 $ 2,829,258 $ 84,944,559
OTHER FUNDING USES
Designated One -Time Use of General Fund Reserves 390,000 390,000
TOTAL TOWN EXPENDITURES & OTHER FUNDING SOURCES $ 82,50S,301 $ 2,829,2S8 $ 85,334,559
GENERAL FUND SOURCE(USE) OF FUND BALANCES $ $ (43,497)
OTHER FUNDS SOURCE(USE) OF FUND BALANCES (249,368) (5) 1,725,356
TOTAL SOURCE(USE) OF FUND BALANCES $ (82,115,301) $ (2,829,258) $ (84,944,559)
(1) Decreased Internal Service Fund Revenues (690,193)
($1,501,527)- Decrease - General Fund Departmental Vehicle and Equipment Replacement Charges
$811,334 - Increase - Transfer to Facilities Maintenance Fund for Special Facility Project $690,193-Decreased Internal
(2) Designated One -Time Use of the General Fund Unassigned Fund Balance Reserves for Long -Term Community Benefit
$3,000,000 - Transfer from General Fund Unassigned Fund Balance to Assigned Long -Term Community Benefit Reserve
(3) General Fund Expenditures
$3,000,000 - Increase - Transfer from General Fund Unassigned Fund Balance to Assigned Long -Term Community Benefit
Reserve
($1,501,52 7) - Decrease - General Fund Departmental Vehicle and Equipment Replacement Charges
$811,334 - Increase - Transfer to Facilities Maintenance Fund for Special Facility Projects
$134,368 -Increase -Various Contractual Agreement needs for Parks and Public Works
$ 50,000 -Increase Community Funding ($20,000 for Sustaining and $30,000 for One -Time)
(4) Internal Service Fund Expenditures
$335,083 - Increase - Special Facility Projects
(5) Other Funds Source (Use) represents planned one-time uses of Internal Service Funds, Special Revenue
Funds, Trust Funds, and Capital Project Funds primary for infrastructure and equipment
investment.
Numbers may differ between exhibits due to rounding.
EXHIBIT A