2009051810 Budget PresentationSmall Town Service ~ Community Stewardship ~ Future Focus
Small Town Service ~ Community Stewardship ~ Future FocusBudget PresentationBudget Presentation 2009/10 Operating Budget2009/10 Operating Budget 20092009--14 Capital Improvement Program14 Capital Improvement ProgramMay 18, 2009May 18, 2009
Small Town Service ~ Community Stewardship ~ Future FocusPresentation OutlinePresentation Outline•• IntroductionIntroduction Town ManagerTown Manager•• OverviewOverview Finance DirectorFinance Director•• IssuesIssues Town ManagerTown Manager•• CIPCIP AssAss’’tt. Fin. Dir.. Fin. Dir.•• Public CommentPublic Comment•• Council Discussion & DirectionCouncil Discussion & Direction
Small Town Service ~ Community Stewardship ~ Future FocusWorldwide Economic CrisisWorldwide Economic Crisis•• Los Gatos not immuneLos Gatos not immune–– Residents & Businesses impactedResidents & Businesses impacted–– TownTown’’s major revenues downs major revenues down–– Yet cost of services going upYet cost of services going up•• Relatively strong due to past actionsRelatively strong due to past actions–– Challenges isolated to the General FundChallenges isolated to the General Fund–– Healthy reserves in place Healthy reserves in place –– Continued focus on Economic VitalityContinued focus on Economic Vitality–– Quick response with hiring freeze, controlsQuick response with hiring freeze, controls
Small Town Service ~ Community Stewardship ~ Future Focus$2.7 m in Adjustments Needed$2.7 m in Adjustments Needed (page 3 & attachment 3)(page 3 & attachment 3)•• Vacant position eliminationVacant position elimination $900 k$900 k•• Other staffing & salary savingsOther staffing & salary savings $700 k$700 k•• Operating cost reductionsOperating cost reductions $600 k$600 k•• Fee adjustments and transfersFee adjustments and transfers $500 k$500 k•• TOTALTOTAL $2.7 M$2.7 M
Small Town Service ~ Community Stewardship ~ Future FocusBudget ImpactsBudget ImpactsLimited due to restructuring & efficienciesLimited due to restructuring & efficiencies1.1. Reduced management capacityReduced management capacity2.2. Continuing unmet maintenance needsContinuing unmet maintenance needs–– Focus on health/safety, not aestheticsFocus on health/safety, not aesthetics–– Scheduled services, not immediate responseScheduled services, not immediate response
Small Town Service ~ Community Stewardship ~ Future FocusBalanced Budget OverviewBalanced Budget OverviewGENERAL FUND SOURCES FY 2009/10 PROPOSED BUDGETOperating RevenuesSales & Use Tax$8.7Property Taxes6.9Licenses & Permits2.2Charges for Services2.4All Others12.4Fund Balance (for designated uses)1.0TOTAL SOURCES$33.5GENERAL FUND USESOperating Expenditures$31.7Transfers ( for designated uses)0.8Contingent Transfers 1.0TOTAL USES$33.5
Small Town Service ~ Community Stewardship ~ Future FocusUpdated 5 Year ForecastUpdated 5 Year Forecast (pages 4 & 5)(pages 4 & 5)•• AssumptionsAssumptions–– Slow recovery to 5% growth in years 4 & 5Slow recovery to 5% growth in years 4 & 5–– Potential loss of Netflix revenue in year 5Potential loss of Netflix revenue in year 5–– Known salary/benefit cost increases Known salary/benefit cost increases onlyonly–– PERS portfolio correction in year 3 & beyondPERS portfolio correction in year 3 & beyond•• ResultsResults–– Continuing new shortfalls of $1+ m per yearContinuing new shortfalls of $1+ m per year–– Strategically use reserves in later years Strategically use reserves in later years
Small Town Service ~ Community Stewardship ~ Future FocusBudget Issues Budget Issues -- 11•• Staffing & Compensation Changes (pg 6)Staffing & Compensation Changes (pg 6)•• Public Counter Hours (pg 6)Public Counter Hours (pg 6)•• Environmental Sustainability (pg 6)Environmental Sustainability (pg 6)•• Economic Vitality (pg 7)Economic Vitality (pg 7)•• Support for NonSupport for Non--Profits & Events (pg 7)Profits & Events (pg 7)
Small Town Service ~ Community Stewardship ~ Future FocusBudget Issues Budget Issues -- 22•• Management Capacity (pg 8 & att. 4)Management Capacity (pg 8 & att. 4)•• Revenue Enhancements (pg 9)Revenue Enhancements (pg 9)•• Donation Opportunities (pg 9 & att. 5)Donation Opportunities (pg 9 & att. 5)•• State Budget Impacts (pg 9 & att. 6)State Budget Impacts (pg 9 & att. 6)
Small Town Service ~ Community Stewardship ~ Future FocusProposed FY 2009 Proposed FY 2009 –– 2014 CIP2014 CIP (pages 10 (pages 10 –– 11 and binder)11 and binder)•• CIP Development ProcessCIP Development Process–– Review current and scheduled projectsReview current and scheduled projects–– Match priorities to available resourcesMatch priorities to available resources–– Planning Commission reviewPlanning Commission review•• Proposed 5 Year CIP totals $35 millionProposed 5 Year CIP totals $35 million•• Proposed 2009/10 CIP totals $27 millionProposed 2009/10 CIP totals $27 million–– $24 million in carry$24 million in carry--forward projects & fundsforward projects & funds–– $3 m in new or expanded funding$3 m in new or expanded funding
Small Town Service ~ Community Stewardship ~ Future FocusSpecific Capital ProjectsSpecific Capital Projects•• Streets ProgramStreets Program–– Street repair, incl. sidewalks, curbs, restripingStreet repair, incl. sidewalks, curbs, restriping–– Storm drain rehabilitation and retaining wallsStorm drain rehabilitation and retaining walls–– Roberts Road Bridge (Roberts Road Bridge (CalTransCalTrans grant)grant)•• Parks ProgramParks Program–– Monte Sereno funds now allocatedMonte Sereno funds now allocated–– But State Park Bond funds temporarily frozenBut State Park Bond funds temporarily frozen•• Public Facilities ProgramPublic Facilities Program–– Completion of Police Operations BuildingCompletion of Police Operations Building–– Construction of new LibraryConstruction of new Library–– Civic Center site improvementsCivic Center site improvements–– Maintenance Yard vehicle canopy repaintingMaintenance Yard vehicle canopy repainting
Small Town Service ~ Community Stewardship ~ Future FocusRecommended ActionRecommended Action•• Public CommentPublic Comment•• Council Discussion Council Discussion •• Council DirectionCouncil Direction–– Changes to Proposed Budget & CIPChanges to Proposed Budget & CIP–– Direct preparation of budget resolutionDirect preparation of budget resolution–– Adopt 2009/10 Staff Special Projects listAdopt 2009/10 Staff Special Projects list–– Adopt 2009/10 Donation Opportunities listAdopt 2009/10 Donation Opportunities list–– Adopt State funding resolution (attachment 6)Adopt State funding resolution (attachment 6)
Small Town Service ~ Community Stewardship ~ Future FocusThank YouThank You
Budget Presentation 2009/10 Operating Budget 2009-14 Capital Improvement Program May 18, 2009 Presentation Outline Introduction Town Manager Overview Finance Director Issues Town
Manager CIP Ass’t. Fin. Dir. Public Comment Council Discussion & Direction Worldwide Economic Crisis Los Gatos not immune Residents & Businesses impacted Town’s major revenues
down Yet cost of services going up Relatively strong due to past actions Challenges isolated to the General Fund Healthy reserves in place Continued focus on Economic Vitality Quick
response with hiring freeze, controls $2.7 m in Adjustments Needed (page 3 & attachment 3) Vacant position elimination $900 k Other staffing & salary savings $700 k Operating cost
reductions $600 k Fee adjustments and transfers $500 k TOTAL $2.7 M Budget Impacts Limited due to restructuring & efficiencies Reduced management capacity Continuing unmet
maintenance needs Focus on health/safety, not aesthetics Scheduled services, not immediate response Balanced Budget Overview Updated 5 Year Forecast (pages 4 & 5) Assumptions Slow recovery
to 5% growth in years 4 & 5 Potential loss of Netflix revenue in year 5 Known salary/benefit cost increases only PERS portfolio correction in year 3 & beyond Results Continuing new
shortfalls of $1+ m per year Strategically use reserves in later years Budget Issues - 1 Staffing & Compensation Changes (pg 6) Public Counter Hours (pg 6) Environmental Sustainability
(pg 6) Economic Vitality (pg 7) Support for Non-Profits & Events (pg 7) Budget Issues - 2 Management Capacity (pg 8 & att. 4) Revenue Enhancements (pg 9) Donation Opportunities
(pg 9 & att. 5) State Budget Impacts (pg 9 & att. 6) Proposed FY 2009 – 2014 CIP (pages 10 – 11 and binder) CIP Development Process Review current and scheduled projects Match priorities
to available resources Planning Commission review Proposed 5 Year CIP totals $35 million Proposed 2009/10 CIP totals $27 million $24 million in carry-forward projects & funds $3 m in
new or expanded funding Specific Capital Projects Streets Program Street repair, incl. sidewalks, curbs, restriping Storm drain rehabilitation and retaining walls Roberts Road Bridge
(CalTrans grant) Parks Program Monte Sereno funds now allocated But State Park Bond funds temporarily frozen Public Facilities Program Completion of Police Operations Building Construction
of new Library Civic Center site improvements Maintenance Yard vehicle canopy repainting Recommended Action Public Comment Council Discussion Council Direction Changes to Proposed Budget
& CIP Direct preparation of budget resolution Adopt 2009/10 Staff Special Projects list Adopt 2009/10 Donation Opportunities list Adopt State funding resolution (attachment 6) Thank
You Small Town Service ~ Community Stewardship ~ Future Focus Small Town Service ~ Community Stewardship ~ Future Focus Small Town Service ~ Community Stewardship ~ Future
Focus