Staff ReportDATE:
TO:
FROM:
SUBJECT:
PURPOSE:
COUNCIL AGENDA REPORT
FEBRUARY 27,2009
MA YOR AND TOWN COUNCIL
GREG LARSON,TOWN MANAGER
2009 TOWN COUNCIL RETREAT
MEETING DATE:03/07/09
COUNCIL RETREAT
PREPARED BY:
The purpose of the 2009 Town Council Retreat is to provide an opportunity to discuss the Town's
projected fiscal stanis in FY 200911 0 and beyond,and for the Council to provide feedback on potential
budget balancing strategies for FY 200911 O.This staff report presents background information on the
topics included on the Council Retreat agenda.
BACKGROUND:
Since the early 2000's,the Town of Los Gatos has taken proactive steps to develop and manage a
financial plan that meets the community's service priorities within available fiscal resources.Balancing
the budget each year of this volatile decade has been accomplished through a combination of actions
including expenditure reductions,hiring freezes,efficiency improvements,reorganizations,and
alignment of service fees to recover costs associated with private development and activities benefiting
individuals.
In addition,the Town has adopted conservative fiscal practices including,but not limited to:
•creating a reserve to bridge downturns in the economy;
•allocating a portion of fund balance each year for capital projects;
•programming only a portion of sales tax generated by the Town's largest sales tax provider;
•prefunding persolmelliabilities and equipment replacement;and
•incorporating conservative revenue and expenditure estimates in budget projections.
The combination of actions taken to-date and the ongoing application of conservative fiscal practices
positions Los Gatos well to manage through the growing global economic crisis.At the same time,two
factors pose greater challenges than the Town has faced in the past.First,the current economic situation
PAMELA JACOBS VttiNld tt J1 Cok
ASSISTANT TOWN MANAGER
N:\~\lIGR\PJacobs\CouncilRctrcal\2009 Council retrcat report.doc
Reviewed by:__Assistant Town Manager __Town Attorney
Clerk Administrator -kFinance __Conmmnity Development
PAGE 2
MAYOR AND TOWN COUNCIL
Sl JR.TECT:2009 TOWN COUNCIL RETREAT
FEBRUARY 27,2009
is unprecedented in its severity and potential impacts to Los Gatos.The impacts of the recession
exacerbate and accelerate the budget deficits already projected for the Town.Second,the significant
reductions already taken limit the opportunities for further reductions without more visible or significant
service impacts.The Council retreat is designed to develop a common understanding of the Town's
projected fiscal situation and to receive Council feedback on potential budget strategies for FY 200911 0
and beyond,which are likely to have visible service impacts.
DISCUSSION:
Trends and Forecast
Revelllle ami Staffillg Trellds
To provide a historical context for the discussion of the Town's financial platU1ing for next fiscal year
and beyond,staff has prepared graphs showing trends in revenue and staffing levels.Attachment I,
Exhibit A shows trends from FY 2001/02 to FY 2008/09 in Property Tax and Sales Tax;Transient
Occupancy Tax (hotel tax)and Business Licenses;and Licenses and Permits and Charges for Services
accruing to the Town.Attachment I,Exhibit S,shows the lack of diversity in the Town's portfolio of
sales tax generators,which in total represent approximately 30%of General Fund revenues.This
display shows the Town's current sales tax mix in the categories of auto dealers,downtown,internet
retail and outside downtown,for the purpose of showing the importance of internet retail,auto dealers,
and downtown.The economic segments in the "Outside Downtown"category are similar to the
segments in the "Downtown"category,but represent the sales tax generated by these segments outside
the downtown.No single segment dominates the sales tax producers in the "Downtown"or "Outside
Downtown"category to the extent that internet retail and auto dealers do.Examples of economic
segments in the Downtown and other categories include:
•Restaurants •Drug Stores
•General Retail •Electronic Equipment
•Auto SupplylRepair •Sporting Goods
•Hardware Stores •Specialty Stores
•Service Stations •Office Equipment
•Food Markets •Health Services
Attachment 2 illustrates staffing levels from FY 2001/02 to the present.In FY 2001/02,Town staff
totaled 184.5 Full-Time Equivalent (FTE)positions,compared to 153 FTE this year.Noteworty
reductions began occurring in FY 2003-04,and since then approximately 23 positions have been
"defunded."A "defunded"position is one for which there is no longer funding in budget.A defunding
contemplated that the position may be restored iffunding were available in the future.The 23 FTE
defunded positions represent a $2.3 million reduction in Town costs.In the FY 2009/10 budget,
defi.lI1ded positions will no longer be shown in individual departments;however,the budget will include
a master listing of defunded positions as a record of past budgetary decisions.The continued use of the
"de funded"classification will be limited to cases where the position may well be restored within one to
two years;otherwise any newly eliminated position will not be shown.
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MA YOR AND TOWN COUNCIL
SUBJECT:2009 TOWN COUNCIL RETREAT
FEBRUARY 27,2009
It is important to note that the reduction of 23 positions over the past six years has been accomplished
with limited impacts on service levels to the community (although there have been some impacts such as
reductions in library hours and parks and streets maintenance).Less visible are the impacts to staff
workloads,which have been considerable.As positions were eliminated,staff has attempted to maintain
levels of service by assuming increased duties and responsibilities.This is evident from the front line to
management staff.Technology and process improvements have helped to mitigate a portion of the loss
of staff resources,but otherwise,staff has stepped up to fill the gap.This limits staff ability to take on
new projects and requires priorities to be established.
At the retreat,staff will briefly review these trends and seek Council comments and questions regarding
them.
Five-Year Forecast
The Five-Year Financial Plan (Attachment 3)is an independent financial tool that is based on current
and projected costs and revenues.It is designed to be fluid in nature,allowing staff to build various
llll1ding scenarios and test "what if'assumptions.Staff has updated the forecast last presented in May,
2008.The current forecast incorporates recent data on economically sensitive revenues and projections
based on the anticipated impacts of the national recession.No specific effects of the State budget action
are included,as there were no direct impacts to local govenmlent in the version adopted.It is
anticipated,hO\.vever,that the State will continue to consider measures that would affect local
govenunent in the future.
The updated Five-Year Financial Plan was prepared with tlu'ee basic assumptions regarding revenues.
The first two fiscal years assumed continuing current recessionary conditions of flat to very low revenue
growth (I to 2%)for most major revenue categories such as sales and property taxes.The third fiscal
year assumed moderate recovery levels of approximately 3%growth,and years four and five more
optimistically assume improving economic conditions (5%growth from the prior year).Year five of the
plan,however,does reflect the loss of the entire internet retail category,recognizing the future
vulnerability of that revenue source.
Expenditure forecasts were updated with FY 2008/09 adopted budget service levels with current salaries
and benefit costs,updated in future years with known cost increases where collective bargaining
agreements are in place,and conservative estimates in the out years for all other cost categories.One
important change in cost estimates is in FY 2011/12 (year three)which incorporates a forecasted 4%
increase to the Town's employer rates for PERS due to the impacts of the current market downturns on
the PERS investment portfolio.
The other noteworthy change to the five-year forecast is the explicit inclusion of all projected sales tax,
including the entire internet retail category,as well as specified transfers out to the Revenue
Stabilization and Capital Reserves to reflect past Council direction.These transfers out vary during the
five-year forecast to reflect reserve utilization,economic conditions,and loss of the internet retail
category.
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MA YOR A 0 TOWN COUNCIL
SUBJECT:2009 TOWN COUNCIL RETREAT
FEBRUARY 27,2009
BegilUling in FY 2009/10,the Five-Year Financial Plan indicates a potential deficit of approximately
$2.0 million.The plan assumes that the FY 200911 0 budget will include ongoing structural adjustments
of that amount into the second year of the plan.Each successive year will include cumulative structural
adjustments of approximately $4.4 million and if these projections hold true,in year five of the plan,
another $1.1 million of adjustments would be required.If the optimistic revenue recovery does not
materialize,the size of the structural adjustment will worsen.
Future Risks
As noted,the Five-Year Plan incorporates the future risk associated with the loss of internet retail.which
reduces sales tax revenue by 28%and eliminates the key source of revenue available for annual transfer
into the Town's capital program which eliminates a critical source of infrastructure funding.
FY 2009/10 Potential Budget Balancing Strategies
Overview
As shown in the Five-Year Forecast,the projected deficit for FY 200911 0 is approximately $2 million,
representing a gap of approximately 6%.This figure represents the deficit if the Town were to take no
action to reduce costs or raise revenues beyond normal cost ofliving increases.Beginning with the
Executive Team retreat in October 2008,staff began to discuss potential cost savings and revenue
enhancement strategies to pursue for the development of the FY 200911 0 budget.Some of these actions
would be townwide in application and others would be service speci fico The town wide strategies are
discussed below,and the service delivery strategies are described in Attachment 4.
TowlIlvide Strategies
Work Furloughs/Service Closures -A number of private companies and public sector agencies have
implemented or are pursuing mandated,unpaid furloughs for staff.In the case of the public sector,this
generally applies to non-sworn employees.Furloughs result in payroll savings,as well as some utility
cost savings if the company or agency is also closed during the furloughs.Staff would like to explore
mandatory furloughs as a strategy to address the budget shortfall.Staff recommends that if furloughs
are implemented they be accompanied by service closures to capture the additional savings and to avoid
the back-up of work that occurs if employee furloughs are staggered.
The payroll savings associated with a one day furlough/closure for Town non-sworn (with the exception
of dispatch)and sworn management employees would be $40,200.Options being considered include a 3
day ($120,700 savings)and 5 day ($20 I ,200 savings)furlough which would be spread throughout the
year to reduce monetary impacts to employees.The furloughs would equal an across the board pay
reduction of about .40%,1.2%.and 2%.respectively.for non-s\\orn and sworn management employees
for the time it is in effect.If the Town were to pursue this strategy.the administration would need to
meet with the bargaining units and would also need to address an FSLA issue related to management.
Staff is seeking Council feedback on the concept of mandatory furloughs with service closures.
PAGES
MA YOR AND TOWN COUNCIL
SUBJECT:2009 TOWN COUNCIL RETREAT
FEBRUARY 27,2009
As Council is aware,staff plans to implement,beginning March 16 th ,a pilot project involving reduced
business hours at the public counters for planning,building,business licenses,and police records.
Hours for the public counters for the first three services will be from 8 to I,with the hours for police
records being from 9 to 4.While there are no direct dollar savings associated with these closures,this
adjustment will increase staff capacity for managing their broad range of duties and responsibilities with
fewer interruptions.This approach has been implemented in other jurisdictions,with reports that the
public soon becomes familiar with the hours and adjusts their visits accordingly.Arrangements will be
made for planning appointments and special circumstances,and limited services will be available at the
Clerk Department.Staff will report back in May on the effectiveness and impacts of the reduced hours
with a recommendation on whether or not to continue the reduced hours through next fiscal year.
Reorganizations and Partnering -Prior to the national recession,Los Gatos and most other jurisdictions
found themselves facing an ongoing structural deficit.This means that projected expenditures are
projected to grow at levels greater than projected revenues.Previous five-year forecasts have suggested
this is a likely scenario.To address a structural deficit,it is necessary to substantially lower
expenditures or increase revenues.One way of reducing expenditures is to reorganize services and
associated staffing,resulting in fewer staff positions.The Town has implemented reorganizations
previously to reduce costs.
While reducing costs is a goal of reorganizing services,another goal is to provide the maximum level of
services possible within the resources available.In some cases,partnering with another jurisdiction or
agency is a way to achieve this goal.Staff is exploring this type of collaboration with the Los Gatos-
Saratoga Recreation Department for senior services and eighborhood Center operations.Partnering
with LGSRD may enable the level of senior and recreation services to be enhanced.or at least
maintained,while reducing Town costs.Internally,it would also allow the Town to consolidate some of
the services provided to the community and to better align some services within departmental programs.
Other reorganizations and/or partnering will be explored as needed in the future,for example in the area
of public safety.Additional information on reorganization or partnering opportunities will be provided
throughout the budget process.
Technology -One area in which the Town will not be proposing reductions is technology.As staffing
and other resources decline,staff will continue to identify opportunities to use technology to gain
efficiencies internally and to maximize services provided to the public.Accordingly,the proposed
budget may include the use of both one-time and ongoing funds for increased technology installation,
maintenance and training.
Revenue Siralegies -The townwide strategies noted above focus on cost savings and/or capacity
building to address the projected deficit in FY 200911 0 and beyond.Staff is also exploring revenue
strategies that address the deficit in different ways.Some of these are discussed in the service-specific
section below.and some are more town wide in nature.These include:
•Use of Revenue Stabilization Reserve -The Town prudently established a Revenue Stabilization
Reserve in FY 2005/06 as a funding source to provide "bridge"funding during reorganizations.
during short-term transitions of sales-tax producing businesses until a new use is in place,or to
PAGE6
MA YOR AND TOWN COUNCIL
SUBJECT:2009 TOWN COUNCIL RETREAT
FEBRUARY 27,2009
allow time for new initiatives and programs to become more fully formed.As discussed above
regarding the Five-Year Forecast,staff is recommending suspending the annual contribution to
the Reserve in years 2 and 3 of the forecast when use of this reserve may be needed.Staff may
also be recommending the use of existing funds in the Reserve to provide bridge funding for
some of the organizational transitions contemplated and for assistance to retain major sales tax
generators facing closures.
•Cost Recoverv Fees -Pursuant to Council policy,staff continues to evaluate fees to ensure that
the Town recovers the cost of providing development-related services and services directly
benefiting individuals.As approved previously by Council,a cost of living increase is
automatically added to fees each year.While staff will undertake a comprehensive fee analysis
next fiscal year,staff will be recommending a few fee increases for FY 2009/10.Some of these
are discussed in the Service Delivery Strategies section below.
•Economic Vitalitv -Although this strategy is long-term in nature,staff is including it in this
discussion to reiterate the importance of business retention,expansion and attraction to
maintaining a revenue base that supports Town services.The Los Gatos Blvd.Plan,orth Forty,
and ongoing efforts in the downtown are all key revenue enhancement strategies.In the study
session on Los Gatos Blvd., Council confirmed the vision of the Blvd.Plan that seeks a diversity
of mixed-use development on this vital commercial street.Staff recommends a similar
confirmation of the vision for downtown,specifically the balance between retail,restaurants and
services that contribute to its vitality.In these uncertain economic times,pressure may increase
to compromise this balance.Staff is currently undertaking a sales tax leakage study to identi fy
opportunities for sales tax generators in the Town.
•Land Sales and Leases -As the Town considers ongoing projected deficits,it is a reasonable
time to review Town assets to determine if there are assets that could generate additional revenue
or cost savings through either sales or enhanced leases.Additional ongoing revenue from leases
could support Town services,and one-time revenue from sales could provide needed funding for
infrastructure as noted in the following bullet.
•Neighborhood Improvement Fund -Staff would like to explore the establishment of a
Neighborhood Improvement Fund if the Town were to receive one-time funding from land sales
or other sources.This concept would provide funds for traffic calming,sidewalk repair.and
other improvements tlu-ough pal1nerships with residents.Other jurisdictions use a cost-sharing
approach (or full resident-funding)for these types of improvements.Leveraging the Town·s
funds in this way would allow more dollars to be allocated to core infrastructure improvements
such as street paving.retaining wall repair,park facilities,and public facilities.
PAGE 7
MA YOR A D TOWN COUNCIL
SUBJECT:2009 TOWN COUNCIL RETREAT
FEBRUARY 27,2009
Potelltial Service Delivery Strategies
In January,staff began to develop potential proposals to achieve the 6%reduction required to balance
the FY 200911 0 budget.The core budget team discussed these proposals with the departments in
February and jointly identified a number of proposals for which the administration is seeking feedback
from Council.These conceptual proposals are described briefly in Attachment 5.
Along with most jurisdictions in the region,state and nation,the Town faces an economic situation
unlike any experienced in recent history,possibly since the adoption of Proposition 13 in 1978.
Accordingly staff is reconU11ending budgetary reductions and enhanced revenues for FY 200911 0,as
well as actions that will address longer-term structural deficit issues.Los Gatos implements
conservative fiscal practices on an ongoing basis,and has managed well through previous downturns.
This places the Town in a good position to manage the current fiscal challenge.Staff is seeking Council
feedback on the potential budget balancing strategies discussed in this report.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA,and no further action is required.
FISCAL IMPACT:
There are no direct impacts associated with the Town Council retreat.Feedback received will be
incorporated in the FY 200911 0 operating and capital budget.
Attachments:
I.AttaclU11ent I:Exhibit A,Revenue Trends and Exhibit B,Sales Tax Revenue Distribution
2.AttaclU11ent 2:Staffing Levels from FY 2001/02 to the Present
3.AltaclU11ent 3:Five-Year Financial Plan
4.Altaclunent 4:Potential Service Delivery Strategies
History of Property and Sales &Use Tax
General Fund Revenues
$10,000,000 I I
;>..,..,
;>
("'J
::t
~
t"1
Z..,
t"1
X
::t-0:1-..,
;>
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0 [
I
--+-Property Tax I
-.-Sales &Use Tax
2001-02
4,784,476
6,953,880
2002-03
4,977,119
6,928,817
2003-04
5,207,381
6,914,526
2004-05
5,302,061
7,904,130
2005-06
5,831,822
8,655,566
2006-07
6,645,436
9,509,947
2007-08
7,036,876
9,345,432
2008-09 Est.
6,924,320
8,200,000
History of Transient Occupancy Taxes and Business License Fees
General Fund Revenues
$1,400,000 I I
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
t"l
?i-1:0-...,
;l>
I--+--Transient Occupancy Tax
.__Business License Fees
2001-02
788,408
978,297
2002-03
713,064
970,554
2004-05
868,908
1,056,814
2007-08
1,245,078
1,138,057
History of Charges for Services and License and Permit Fees
General Fund Revenues
$3,000,000 i I
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
t"l
:><:x-t;C-...,
;>
$0 ,
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Est.
__Licenses and Permits (excluding Business 707,553 990,613 989,522 1,980,760 2,265,243 2,382,477
2,457,418 2,161,430
I Licenses Fees)
1,988,31211,851,638 [1,976,4551__Charges for Services 2,050,292 2,209,840
2,526,201 2,045,524 2,008,171
t"l
~
::t:....
I:tI......,
I:tI
Outside Downtown
$3.2M
(39.3%)
Town Sales Tax Mix
Projected 2008/09 Sales Tax Revenues
($8.2M Revised)
Downtown
$1.7M
(20.75%)
Internet Retail
$2.3 M
(28.05%)
Auto Dealers
$1M
(11.89%)
History of Staffing Levels
o
2007-082006-072005-062004-052003-042002-032001-02
*FY 2003/04 -Reductions in Parking Control and General Administrative Staff
**FY 2004/05 -Reductions in Maintenance and Engineering;Police;and General Administrative Staff
***FY 2005/06 -Reductions in Library, Police,and General Administrative Staff
****FY 2006/07 -Reductions in Maintenance Staff due to Sale of Sewer System
2008-09
Budgeted
IIii Management &Administration •Community Development 0 Police 0 Parks &Public Works •Community Services 0 Libraryl
;>...,...,
>
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N
Town of Los Gatos
General Fund
Five-Year Financial Plan
FY 5FY4FY3FY'FY I -
2009/10 2010/11 2011/12 2012/13 2013114
Account Revenue Category Forecast Forecast Forecast Forecast Forecast
4100 Propeny Tax 6,993,600 7,063,600 7,275,500 7,639,300 8,021,300
4110 VLF Backfill Property Tax 2,325,200 2,348,500 2,419,000 2,540,000 2,667,000
4200 Sales &Use Tax 8,677,467 8,827,200 9,092,000 9,546,600 7,723,900
4250 Franchise Fees 1,689,200 1,723,000 1,774,700 1,863,400 1,956,600
4251 Transient Occupancy Tax 1,111,000 1,122,100 1,155,800 1,213,600 1,274,300
4400 Business License Tax 1,122,000 1,144,400 1,178,700 1,237,600 1,299,500
4400 Licenses &Pemlils 2,416,373 2,465,810 2,540,025 2,667,151 2,800,579
4500 llllergovernmental 810,690 823,100 841,800 873,900 907,600
4600 Charge for Services 2,312,563 2,387,100 2,484,000 2,624,800 2,773,900
4700 Fines &Forfeitures 496,040 505,600 520,800 546,900 574,200
4800 Interest 1,550,000 1,564,000 1,578,100 1,592,400 1,606,800
4850 Other Sources 2,716,860 2,723,963 2,770,150 2,846,275 2,925,676
TOTAL REVENUES 32,220,993 32,698,373 33,630,575 35,191,926 34,531,355
4900 Fund Transfers In 143,920 143,920 143,920 143,920 143,920
TOTAL REVENUES &TRANSFERS 32,364,913 I 32,842,293 I 33,774,4951 35,335,846 I 34,675,2751
2009/10 2010/11 2011/12 2012/13 2013/14
Account Expenditure Category Forecast Forecast Forecast Forecast
Forecast
5110
5120
5130
5140
5170
5200
6000
7200
7400
8060
8900
Salary
Elected Officials
Temporary Employees
Overtime
Other Salary
Benefits
Supplies,Materials,&Services
Grants &Awards
Utilities
(Olema I Service Charges
Debt Service
14,816,558
23,340
503,571
467,895
198,847
5,929,358
5,571,340
201,490
465,440
3,681,800
931,850
15,432,595
23,340
523,305
486,923
224,958
6,216,118
5,709,765
201,490
484,820
3,749,900
931,100
16,071,685
23,340
544,237
506,400
231,786
7,191,848
5,898,015
201,490
505,250
3,819,700
929,050
16,695,422
23,340
566,007
526,656
238,989
7,385,077
6,089,659
201,490
526,800
4,140,700
932,100
17,420,380
23,340
588,647
547,722
246,471
7,595,774
6,288,185
201,490
549,530
4,218,400
931,300
TOTAL EXPENDITURES 32,791,490 33,984,314 35,922,800 37,326,239 38,611,239
TOTAL EXPENDITURES &TRANSFERS
9900
9900
9900
9900
GASB 45 Retiree Medical Actuarial
Operating Transfers Our
Transfer to Capital and Future Projects Reserve
Transfer to Stabilization Reserve
550,000 820,000 1,090,000 1,400,000
10,000 10,000 10,000 10,000
500,000 500,000 500,000 500,000
500,000 500,000
34,351,490 35,314,31~37,522,800 39,736,239
1,600,000
10,000
40,221,239
IREVENUES LESS EXPENDITURES
ONGOING SHORTFALL MITIGATION
c'"(1986,577)1'12,472,021),(3,748,305)1,(~,400 393\\'(,5,545,96'4)
1,986,5771 2,472,0211 3,748,305 4,400,393
'NET REVENUES LESS EXPENDITURES S (1,986,577)S (~85,444)S (1,276,285)S (652,088)S (1,145,571)
ATT ACHMENT 3
2009 Town Council Retreat
Potential Service Delivel1'Str'ategies
Code Enforcement Redistribution of Work
The Code Enforcement position has been vacant since December of last year,and has
been "frozen"as have been most of the vacancies occurring this fiscal year.The proposal
would eliminate the position and continue to redistribute the work to the Building
Inspectors,as has been occurring since the vacancy.One of the Building Inspectors was
formerly the Code Enforcement Officer,and all of the Inspectors have been trained to
address code issues.Because the inspectors have other responsibilities,code
enforcement activity will be directed toward life safety and complaint-driven issues,
rather than overall proactive enforcement.
Public Safet)'Fees
The Police Department is exploring three potential sources for increased revenue.These
include a tow service franchise fee,a taxi service franchise fee,and changes to the
residential and commercial alarm fees.Other jurisdictions currently operate similar
programs.The tow service franchise would allow the Town to charge a per-tow fee for
vehicle tow services operating in the Town.The taxi service franchise would operate in a
similar fashion,requiring taxi companies serving the Town to pay a franchise fee.The
alarm fee proposal would amend the current code to require registration of residential and
commercial alarms and a registration fee.It would also modify current code to reduce
the allowable false alarms from 2 to I before a fee is imposed (unless the alarm is not
registered,in which case a fine would be charged to encourage registration).
CERT Support
The CERT program provides significant value to the Town in training residents to
prepare for and assist with emergencies.This proposal would reduce Town costs
associated with support for the CERT program by reducing program overtime costs and
modestly increasing the charge for participants (residents from $15 to $35 and non-
residents from $30 to $50).The objective would be to maintain the quality and
effectiveness of the program while lowering Town costs.
Parks Fees
Staff is proposing to increase the number of days parking fees are collected at Oak
Meadow Park and to increase the parking fee for non-residents.Regarding the former,
the proposal would institute fees for non-residents'parking an additional 30 to 45 days
annually (weather dependent)when they are not currently collected.It would also raise
the fee itself by $1 to match the parking fee at parks in other local jurisdictions.Staffis
seeking Council feedback on this proposal as well as on any future consideration of a
small parking fee for residents.
ATTACHMENT 4
Parks Maintenance
The Town is fortunate to have a large number of parks for the residents to enjoy;
however,the number and total size of these parks generate a high maintenance demand.
With slu·inking resources,it is challenging to maintain current levels of service in all of
the parks and in fact,service levels have decreased in recent years.Parks and Public
Works staff continues to evaluate approaches to allocate resources among all the parks to
maintain the highest level of service possible.The idea for an "Adopt a Park"program
will help by covering some of the basic maintenance services at the parks.However,this
program will still require coordination and some supervision,and will not address some
of the basic services nor any of the more technical services.Another landscaping
challenge is the Town's medians.Due to their number and location in the middle of
roadways,medians require significant staff resources to maintain them.Installing
attractive hardscape requiring less maintenance at selected locations would allow staff to
better manage the park maintenance workload.Staff is considering some reductions in
vacant positions and reallocation of work that may result in some reduction of service
levels,particularly during the high-use summer months.Staff is mindful of the pride the
community has in its parks,and would not reduce service levels to an unacceptable level.
Downtown Maintenance
As Council is aware,Town staff allocates extra resources toward downtown
maintenance.This includes extra trash pick-up and downtown sidewalk cleaning.Even
with the extra resources dedicated to the downtown,the Town still receives complaints
about both trash and the appearance of the sidewalks.Given diminishing resources,it is
unlikely that the Town will be able to increase downtown maintenance in the foreseeable
future.At some point in the future,the Town may actually need to reduce maintenance,
as the costs associated with sidewalk cleaning are likely to increase when new storm
water regulations take place.An option is to engage the downtown business community
in a voluntary effort to provide maintenance,or a business district approach to pay the
costs for enhanced maintenance.
Commission Reductions
Los Gatos residents and businesses are known for their volunteer efforts.One of the
ways they volunteer is to serve on the Town's 20 commissions,boards and committees
(commissions).These commissions serve a valuable role in providing input to the Town
Council on issues important to the Town.Given changing priorities over time,it is
prudent to evaluate the role,composition and meeting practices of commissions.Staff is
considering proposals that would:I)phase out a commission that no longer serves a
meaningful role for the Town;2)refocus the role of commissions to policy issues;3)
reduce the number of commissioners on certain commissions;and/or 4)reduce the
frequency of meetings.The latter three measures are in recognition that smaller
commissions focused on policy issues can be more effective and may not require monthly
meetings,and would place less of a demand on administrative and management staff
resources that are required to support the commissions.It is anticipated that taking these
actions would increase the effectiveness of the commissions and enhance staff capacity to
deliver other priority services.
Community Grants and Facilities
The Town has provided significant support to the arts,socioeconomic services,museums,
and other non-profits tlu·ough the years via direct grants and/or subsidized facility leases.
All of these services are important to the fabric of the community and the Town's
partnerships with them are valuable.As the Town faces growing deficits,staff is
exploring opportunities to reduce the Town's expenses while continuing to partner by
providing limited funding as it is available and other support.
Special Events
The small town character of Los Gatos is celebrated in the Town's annual community
events,including the 4 'h of July,Screen on the Green,Music in the Park,Volunteer
Recognition,Senior Picnic and Thanksgiving Dinner,Keep Los Gatos Beautiful Month,
Garage Sale,and Second Chance Week.These events require varying levels of Town
funds and staff support.Staff would like to propose continuing all of these events,with
the exceptions of the Garage Sale,which could be promoted in a different less-costly way
and MIP,for which a non-profit model is being considered.Staff is also proposing to
limit the budget to cover only these special events,such that funding would not be
available to expand or add to the number of special events.The special events
themselves could still be changed within that budget.This would enable staff to focus on
priority events.Staff is also exploring the costs associated with supporting other
community-wide events such as the Children's Holiday Parade,Fiesta de Artes and Jazz
in the Plazz .
Sunday LibralJ'Closure
Tlu·oughout previous downturns,the Town has been able to keep the library open seven
days a week,albeit with reduced hours.It is staffs understanding that all local library
jurisdictions are considering reduced hours across the range of their weekly hours of
operation -evenings,Sundays,and Mondays,Friday afternoons.Rather than operating
a six-day schedule,the library reduced its collections budget in previous years.The
collections budget has been restored somewhat,but remains at a low-average level.For
next year,staff is exploring a proposal that would keep the number of operating hours at
the current level of 54,while closing on Sunday.This would be possible due to an
upcoming retirement,which,if not refilled,would reduce costs.With one less librarian,
it would be unworkable to operate a seven-day schedule.The proposed schedule would
continue to provide morning and evening hours throughout the week.