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1 - Accept Fiscal Year 2010-2011 Annual ReportMEETING DATE: 10/17/11 ITEM NO: DATE: TO: FROM: SUBJECT: ACCEPT FISCAL YEAR 2010-11 ANNUAL REPORT RECOMMENDATION: Accept Fiscal Year 2010-11 Annual Report. BACKGROUND: COUNCIL AGENDA REPORT OCTOBER 12, 2011 MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER Town Code requires the Town Manager to submit to the Town Council a report on the fmances and administrative activities of the Town at the end of the fiscal year. Detailed information on the Town's finances for last fiscal year will be provided in the Comprehensive Annual Financial Report (CAFR) presented to Council in early 2012. Prior to Fiscal Year 2002-03, staff provided a report to Council regarding activities and accomplishments in memorandum form. Beginning in Fiscal Year 2002-03, the annual report has been produced in newsletter format and delivered to Los Gatos households. DISCUSSION: Attached is a copy of the annual report for Fiscal Year 2010-11. The newsletter version will be mailed all Los Gatos addresses in late October. Additional copies of the Annual Report will be available for distribution throughout the year. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: Funds for producing the incremental cost for printing the Fiscal Year 2010-11 Annual Report are available in the Town Manager's budget. Attachment: Fiscal Year 2010-11 Annual Report PREPARED BY: PAMELA JACOBS Assistant Town Manager PJ:jj s7 Reviewed by: Assistant Town Manager { Town Attorney Finance Ni abIG R',AdminWorkFiles'20 I I Council Reports' 10-17-11 Annual Repon.doc THIS PAGE INTENTIONALLY LEFT BLANK SMALL TOWN SERVILE • COM'MUN:ITY STEWARDSHIP • FUTURE FOCUS Annual Report TOWN OF LOS GATOS Y 2010/2011 We are pleased to present the Town. of Los Gatos Fiscal Year 2010111 Annual Report. It covers the period. from July 2010 through June 2011, and highlights activities and accomplishments of your Town government and its manycommunity partners. Every annual report includes some of the major events and projects occurring over the course of the year. When We look back at the year, we always appreciate the manyopportunities we have had to contribute to the quality of life in this special town. While thetown, the region, and the nation see glimmers :. of economic recovery, the lingering effects of the great ; economic recession continue to limit the resources available to support Town services. As always, we strive to prioritize services to best meet community needs. As you read this year's Annual Report, you'll see that we contmue,toprovide core services, such as public safety, transportation and parks improvements, library services, and development and business assistance. We also use partnerships to enhanceservices, such as working with theChamber of Commerce to host downtown events; West Valley Community College to conduct small business workshops; Santa Clara County to leverage resources for a solar energy program; and Los Gatos - Saratoga Community Education and Recreation for youth, adult, and senior services. On behalf of the Town organization, thank you, once again, for this opportunity to serve this outstanding community! -- - Greg Larson, Town Manager Manager@LosGatosCA gov '. It__ Los Gatos Library Time Capsule June 21, 2011 To Be Opened On The Town's Bicentennial August 10, 2087 R +ux[ of graetxe enemy m a Mtn es Tate eta te k ataaa aatuad[a. - 74,444 fie/Nana Small Town, Big Doings Los Gatos may he a small town in size, but it is a multifaceted community with a wide array of events, activities, and projects going on at any given time. This past year was no different. Once again, the new library was at center stage. Over the year, it took shape both outside and inside — on its way to becoming the new community gathering and learning place. The Town marked this journey by placing a time capsule in the ground in front of the library, to he opened in 2087 at the Town's bicentennial celebration. Los .Gatos Creekside Sports Park moved closer to reality, as the vision for this new community asset evolved into a master plan for its development. Oak Meadow Park, the Town's enduring treasure, was enhanced with a pathway improving access for patrons with disabilities, strollers, and others needing more stable footing. And the new Roberts Road Bridge opened for traffic, offering a safer passage for bicycles and pedestrians both on the road and on the Los Gatos Creek 'frail below. Town Council Joe Pirzynski Mayor Steve Rice Vice Mayor Steve Leonard's Diane McNutt Barbara Spector Setting the vision for the next ten years, the Town's updated General Plan was adopted following an extensive community input process. This blueprint for the future helps to guide the community's efforts to maintain and enhance Los Gatos' quality of life and small town character. Another quality of life measure initiated by the Town was the establishment of a Victim Services Unit by the Police Department. The professionals and volunteers in this program will offer valuable support to crime victims, in conjunction with the ongoing efforts of the police force to protect the public. Read more about these and more in this Town of Los Gatos Fiscal Year 2010/11 Annual Report. As you read this Annual Report, you'll see accomplishments that illustrate the principles of Small Town Service, Community Stewardship and Future Focus. We invite you to read on about the efforts the Town is making to keep Los Gatos a special community, with your help. 1 Town altos Gatos Annual Report Fiscal Year 20102011 re) 0 a pi; Is • cycl o a L ' V 1-% of, 7bmn &Los Gatos Annual Report Fiscal Year 20101011 A Morsel of Genuine History 0n lune 21, the Town celebrated the placement of a time capsule in the earth below the entry to the new Los Gatos library, now under construction. More than 100 community members fumed out to witness this historic event. The capsule will be opened on the Town's bicentennial on August 10. 2007. The contents of the lime capsule were carefully selected to tell the storyaf life in Las Gatos al the time the new library was huilt. A collection of photos, newspaper articles, and local memorabilia were placed in the capsule,abng with an iPad loaded with digital information (including aeharger that will hopefullyslill work!). The Wad was the last item placed in the capsule. alter it was used to photograph and video record the time capsule ceremony. Avery special and important item in the capsule was a collection of over 50 personal notes about life in Los Gams from community leaders; library supporters; and business. service. faith, and educational organizations. Hundreds of other communitymembers had an opportunityto send a message to the future an three -loos scrolls made available throughout the town prior to the event. The next -to -last item placed in the capsule was an eight-taalscrou with the names and hand prints of 15 Los Gams children ranging in age (ram 4 to 9. These "Ka psute Kids' were part of the ceremony, and it is hoped that some of them will still live in Ws Gatos and witness the opening of the lime capsule 76 years from now. Parthenia Hicks, the Town's Poet Laureate, wrote and recited a poem entitled "Light in Los Gatos' for the ceremony. Friar to the capsule being lowered into the earth, the bronze plaque that will mark the location was unveiled. In addition to the dales of the placement and the opening, Iheplaque bears aquote from Thomas Jefferson:"A morsel of genuine history's alhing so rare as to be always valuable.' "Fiesta House" Finds New Home To make way for the new hbrary,a Tmm-mined, 19th--century Italianate cottage on Fiesta Way had to find a new home. The Town advertised theavailabilityol the"Fiesta House" for the sumof$I and Inctcost of moving it loan approprble location within Ins Gatos. as were berested in Incthome it look some time to rind the right local biers with ana appropriate location. While manyindhdu 1 1 P>A } pp p Last. December, the Fiesta House made its slow overnight journey from a temporary location al the corner of LarkAvenue and Winchester Boulevard to its new home on University Avenue. There, the new owners— who happen lobe from a historic Los Gatos family —are addinga basemenland small addition In the house. It will retain its historic external features,and the story of the "Fiesta House" will be included in the new library's history collection. Leadership Los Gatos During the past year, the Town -sponsored Leadership Los Gatos program celebrated its tenth year and its tenth graduating class. It is the mission of Leadership Los Gams to engage, educate, and develop service -oriented individuals for leadership roles in community, neighborhood organizations, schools, places of worship, and Town government. The program is for Los Gatos community members who would like to become more involved while exploring the services and composition of their community. This year, Leadership Los Gatos students participated in fun and engaging activities such as: • A ride -along with a Police Patrol officer • A hard hat tour of the new library under construction • An "inside information" bus tour of Los Gatos • A tour of the Santa Clara County Fire Department. training facilities a A lour of the Police Operations Building Program graduates are contributing to the community as Town commissioners, non-profit agency board members, and elected officials. More information about the program is available from the Los Gatos Chamber of Commerce at (4W) 354-9300,or on its websileovvivaLosGatosffirambencom/leadersclass.html. New Library Features The Los Gatos Public Lbmryserves as the 'Towns primary provider of information services. As well as traditional library resources, it keeps en the culling edge of library technology to serve its customers efficiently. During the year, the library added a number of new services, including the following: New Online Catalog Los Gatos Librarywas one of the first libraries in California to go live with an open source catalog, thanks to a grant from Open Source —Open Libraries. This initiative is supported by the U.S. Institute of Museum and Library Services under the provisions of the Library Services and 'mchnologyAcl, administered by the CaliforniaSlate Librarian. Overdrive Advantage and Boopsie Los Gatos was the first library in the nation to offer integration of Overdrive °Books via its Boopsie mobile app. The announcement was made at this summers American LibraryAssocialion conference in New Orleans, and was featured inanarticle in Librarylournal. New Computers The library now has iMacs available for public computing. Similar to the setup at Los Gams High School and Santa Clara University, the Town is now offering computer users the choice of Macintosh or Windows operating systems.The newiMacs have much larger screens and are much faster. New Reference Books The reference collection was updated with a number of new books from the Oxford University Press. The new titles include: American National Biography, Grove Dictionary of Music and Musicians, Grove Encyclopedia of American AU,Encyclopedia of Popular Music, Greens Dictionary of Slang, The Grove Encyclopedia of Materials &Techniques in Art, The Grove Encyclopedia of Islamic Art &Architecture, Encyclopedia of the Enlightenment, and The Grove Encyclopedia of Decorative Arts. Community Development and Planning Economic Vitality Program Supports Local Businesses As economic conditions continued to improve slowly during the past year, the Town's Economic Vitality program enhanced its partnerships with the local business community to support their needs and to boostsales.Stall focused on building relationships with local start-ups, major employers, and vulnerable businesses, through efforts such as the following: Mayor's Business Outreach To build relationships with ourbusiness community, the Motor, Town Manager, and EconamicVilality Manager met with local businesses on a monthly basis. Each month, a business was selected from one of three categories: growing start-ups, major employers, and vulnerable businesses. The team met with each CEO at the business location, toured the facilities, and observed operations. Frank discussions about why the business located in Los Gams, the business's plans for growth and expansion, and any Town -related issues facing the business were a key part of the outreach meetings. The Outreach Program has proven to be an excellent way to learn mare about the diverse businesses to Los Gatos and why Los Gatos remains such a quality location to start and grow businesses. Small Business Workshops EconomicvItality staff met with representatives from small businesses and identified opportun0ies to provide free training and workshops that would introduce new skills and provide support in key areas. The Town partnered with the Los Gams Chamber of Commerce and West Valley College to bring innovative,informative, and hands-on seminars that included such topics as using Facebook and Linkedln as social media marketing fools. The framing sessions, held in August 2010 and January 2011, were well attended by local businesspersons from a variety of industries. Emerging Business Forum In October2010, the Ma)or hosted an Emerging Business Forum designed to provide an opportunity for Los Gatos entrepreneurs to showcase their businesses, discuss doing business in Los Gatos, learnahout the Town's business resources, and network with peers. Representatives from a total of 13 emerging Los Gatos businesses attended. The Town has since partnered with two companies that attended the evens, and as a result, two innovative projects are currentlyunderway.. goTown,a local start-up that has developed a smart phone app marketing communities retail areas, is working with the Town to develop a portion of its app as a Town services portal designed to make local government more accessible to residents. A local clean -tech start-up, Aquacue, provides technology through which the Town can more easily understand its day -today water use and lake the necessary steps to decrease consumption. By New Development 16005 Los Gatos Boulevard In fume, the Town approved a Planned Development application for a projectcansisling of 16singlefamily residences and 9 townhnmes, plus2 commercial buildings, for a total of30,750square feet. The project is located an the northwest corner of the intersection of Los Gatos Boulevard and. Blossom Hill Road, the former Swanson Ford/AkeenaSolar site. using this new technology, the Town has been able to achieve measurable results in water management practices and reduce its operational costs. Downtown Newsracks On May2, the Town County approved the creation of a special newsrack district in the downtown, designating ten locations for oeasracks with specific design standards. The approved modifications to the newsmek ordinance addressed both safety and aesthetic concerns. The new racks have been installed on West Main Street, in Gant of Le Boulanger and Los Gatos Coffee Roasting Company. During the wialer, new racks will be installed throughout downtown. Downtown Wine Walk Cosponsored by the Town and the Los Gatos Chamber al Commerce, this bi-annual event featured over 251ocal wineries pouring tastes in25 independentdosntovn retailers. The Wine Walks were heM on September 25,2010 and Apr1126, 2011. Attendance at each event was limited to 500 participants to ensure an enjoyable experience for tasters, who spent limited time in line for wine lasting and had plenty of room to browse and shop in the retail establishments. New Businesses in Los Gatos Fiscal year 20102011 continued to challenge local businesses proving that Los Gams Was not immune to adverse economic impacts. Office and research and development complexes saw occupancy rates decrease as did all neighborhood commercial centers.However, in comparison with other Silicon Valley communities, Los Gatos fared well. Los Gatos Boulevard is transforming with the redevelopment al former auto sites, which will bdng addedhous'g and retail development to the Boulevard. And, despite the challenges, Las Gatos continues to be a desirable place to locate and grow a business. Downtown maintains a high occupancy rate and new businesses continue to open. Downtown vacancies are predominantly larger spaces which always take more time to fill, especially in a recession. However, there is great interest in vacant space in the dowmtowm, with up to 200 interested businesses inquiring about particular locations. We encourage you to shop local and support your community by visiting These new downtown establishments: 4 Boys and a Girl Baby Buzz Cover Story Luhu Lemon Rootstalk Wine Bar Title Nine Me rtewsmctrhoc ebeeninstalledin Ile downtown Best of Silicon Valley ' In June both Metro Silicon Palley and the San Jose Mercu°. News released lists of their favorites ineverything from art galleries to the best places to walk your dog. Avariely of Los Gams businesses and locations were recognized; the most was Downtown Los Gatos, voted as the best Downtown shopping venue bysmafose .Nertary News readers for the sixth year in a mw. In total, 46 Los Gams places and services were recognized, including13 restaurants. v rat szincno 3 Town of Los Gatos Annual Report Fiscal Year 201112011 North 40 Specific Plan The North 40 is an approximately 40-acre site bound by Highway 85 on the north, lark Avenue on the south, Highway 17 un the west, and Los Gatos Boulevard on the east. The Yuki family, the majority landowner, is working with developer Grosvenor Americas to create plans for a mixed use development that will include residential, retail, and office components,and pwsiblya boutique hotel. A specific plan, a document that outlines how the policies of the Tosm's General Plan will be implemented for one specific site, was drafted for the North 40 in 1999, but never adopted. With a development proposal imminent. the draft plants now being updated and completed to provide aguide for future development of the site. The plan will include land use, infrastructure, design and signage criteria, and phasing, based on extensive public input and review. Last February, the Town Council approved a contract with a consultant for completionof the North 40Specific Plan.An advisorycommitlee of community members was created from members of the former General Plan Update Advisory Committee and General Plan Committee to oversee the process. The North 40Advisory Committee has had four meetings and two communityworkshops, and conducted an online visual preference survey to solicit community input. his anticipated that emironmenal review for the specific plan update will commence later this year, and the adoption of the final North 40 Specific Plan will occur in late 2012. California Green Building Standards California is leading the nay in developing green building standards Through Its 2010Califurnia Green Building Standards Code, or CalGreen. CalGreen, which went into effect January 1, 2011, sees minimum standards that all newbuildings can achieve to minimize significantly the states overall carbon output. In December 2010, the Town adopted the mandatory measures of CalGreen,maw of which are commonplace measures that are already being implemented. They include an increased emphasis on water efficiencyand wafer conservation, materialconservation, resource efficiency, wastereduction, improved energy efficiency, and indoor environmental quality. The full text of CalGreen is available through the California Building Standards Commissionwebsite,www,bsc.ca.gov. Parks and Open Space Parks Improvements Los Gatos Creekside Sports Park In November 2010, the Town began a community input process around the development of Me new 2.8-acre Creekside Sports Park, to he located a1930 DniversilyAvenue. This process included a series of three community workshops, each of which included brief presentation on the site's history and the guiding principles and timeline for the project, and, most importantly, time spent gathering ideas about potential uses and amenities that community members mold like to see as part of this new park. The second community workshop included an activity where participants worked in small groups to layout templates of potential park elements on a map of the site to create their own design concepts. Based on the Town Council's adopted guiding principles and this community input, staff selected the design concept with the largest multi -use field as the recommended option to move lanyard. The recommended concept was presented to the Parks Commission, which voted to move the recommended layout forward through the environmental review Solar Power Purchase Agreement process and ultimately to the Planning Commissionand Town Council for approval. The late fall of 2011is the current target far contract award and the beginning of site construction. Blossom Hill Park Master Plan The Master Plan for Blossom Hill Park was completed m May 2010. It includes input from members of the surrounding neighborhood and other park users, and documents the current slate of the park facilities. The Town also completed park improvement projects in Blossom Hill Park, including re- surfacing of the tennis courts, repair of the tennis court stairs, and a playground renovation. These projects helped to improve the safety of these areas and extend the useable Heel each area for the continued enjoyment of park patrons. Blossom Hill Park is located between Shannon Road and Blossom Hill Road, east of Blossom Hill School. In April, the Tmm look another large step in its environmental suslainability efforts when theTown Council approved participation in a Solar Power Purchase Agreement (PPA). The solar PPA will allow the Town to install solar panels with no capital investment on its part, and to purchase power directly from a solar power provider at a fixed reduced late, providing a significant energy cast savings ever the next 20 years. The solar power provider, Fresh Mr Energy -II, was selected through a group procurement process participated in by many local BayArea municipalities, including Los Gatos, Santa Clara County, the Valley Transportation Authority, South Bayside Waste Management Authority, Mountain View, Milpitas, Cupertino, and Morgan Hill. The group procurement process resulted in pricing that was 10% to I4%helow market rates. Solar panels will he installed on the Police Operations Building on Los Gatos Boulevard and al the Parks and Public Works serviceyard on Miles Asewe.The project is expected to be completed and operational by the end of 2011. Town of los Gatos Annual Report Fiscal Year 201012011 Transportation and Infrastructure Capital Improvement Projects Capital projects maintain the condition and availability of public facilities, transportation systems, and other public infrastructure. Each year, the Toro adopts afive-year Capital Impromment Program Budget, which identifies capital projects related to the Town's future infrastructure needs and the corresponding funding required. During the year, the following capital projects were underway: Almond Grove Street Reconstruction TheAlmond Grove neighborhood is considered a historic neighborhood because the build'mgs and infrastructure in the area date back to the 1940's. Over several decades, the concrete streets and associated infrastructure have become cracked and damaged, creating safetyconcerns. As part of last year's adapted Capital Improvement Program, the Then Council allocated funds to perform a preliminary evaluationanddesign of the infrastructure in the Almond Grove neighborhood.A detailed analysis of the street conditions was completed, which allowed the development of a multi -year plan to reconstruct and rehabilitate the residential streets as well as the curbs, gutters, and sidewalks. This past spring, the Town Council allocated funds to begin the first phase of street replacement in this historic area As part of a comprehensive outreach process, stall will coordinate a neighborhood meeting with area residents to solicit their input on theproject. It is anticipated that construction will begin in the spring of 2012. Roberts Road Bridge Dedication TheTewo completed constructional the Roberts Road Bridge in December 2010. Staff workedclosetywith nearby residents to design a structure that is seismically and structurally safe and also blends well with Los Gatos Creek and its surroundings.The retaining walls under the bridge were designed to match the natural creek setting environmenL One important design feature that was relamed from the old bridge was keeping ita one -lane bridge, with stop signs on either end. The project was funded through combination of a Caltrans grant and Town funds. The Town hosted a dedication ceremony on December 21,2010 to commemorate the opening of the bridge. The MayurTbwn Council, and local residents and business owners attended the ceremony, which included a plaque dedication and rmben cutting. Public Safety Victim Services Unit The newVictim Services Unit (VSU) comprises:15 taiaed community volunteers whocontactandoffer support to victims of crime in Los altos and Monte Sereno. Since the program began: in February 2011, over 300victims have been contacted by VSUvolunteersto provide support and to offer resources and referrals to community -based organizations. VSU has also responded to traumatic incidents in the field such as domesticviolence calls and injury traffic collisions. VSU volunteers have received training on suchtopics as elder and dependent adult services, mental health issues, ape crisiswiclim-witness assistance, identity theft, criminal Investigation case lbw, and the chaplain program: The PoliceDepartment is proud and honored to have such a dedicated group of volunteers to assist victims of crime. The VSU is housed in the Police Opeatioas Building, 15900 Los Gatos Boulevard. To contact the VSU, call (408) 82i-3205 or send an email to vsu®LosGatosCA.gov. Los Gatos Prepared The Town undertook the fifth annual presentation of its emergency preparedness public education progmm,Las Gatos Prepareq to encourage every residentand business in Los Gatos to have the skills and resources necessary to be self-sufficient in the event of natural or other disaster. In addition to informational displays at the Los Gatos Farmers Market in October2010, five neighborhood shopping center displays were presented on October 16, commemorating the 2lst anniversary of the Loma Priem earthquake. These displays were all staffed byvolnnteers trained in emergency preparedness for the neighborhoods in which they live. On display were items and supplies that residents should have on hand to be prepared for Los GATOS PREPARED a disaster such as an earthquake or an outbreak of pandemic intuema. Simple checklists and easy -to -follow emergency preparedness instruction sheets were available at each location, with experts on hand to provide additional information. More information about Los Gatos Prepared can be found online at www.losgatasprepared.org. Town ono Gatos Annual Report Fiscal Year 2010/2011 5 Awards and Recognition 2010 California Peace Officers' Association Award of Distinction InApril2011,a member of the Los Gatos/Monte Serena Police Department became the first to be selected by the California Peace Officers' Association to receive its annual Award of Distinction. The Award of Distinction is presented for an outstanding act or accomplishment, or for an ongoing operational activity that performs a great service to the community. The officer received the award for his continuing efforts to help the homeless population in Los Gatos and the greater Santa Clara Countyarea.Amang other accomplishments, his efforts led to the housing of five chronically homeless local people, who are to longer living on the street TREE CITY USA, Tree City Award and Arbor Day Event The Town celebrated its 31s1 consecutive year of being named a Tree City USA® by the National Arbor Day Foundation. In order to qualify for this designation, the Town must meet lour criteria: have a tree hoard or department, adopt a tree care ordinance, maintain a comprehensive community forestry program, and host anannual Arbor Day observance. On April 29, the Parks and Public Works Department hosted a free planting ceremony at Blossom Hill Park to commemorate this recognition and also to celebrate Arbor Day. The Town Council, along with students from Blossom Hill Elementary School, participated in this community celebration. Information Technology Award The Tree City USA® program is sponsored by the National Arbor Day Foundation in cooperation with the U.S. Forest Service Urban and Community Forestry Program and the National Association of Slate Foresters, and provides direction, technical assistance, public attention, and national recognition for urban and community forestry programs in thousands of towns and cities throughout the United Slates. The Town's urban forestal more than 20,000 trees touches the lives of people within the community, who benefit daily from cleaner air, cooler buildings, and the aesthetic beauty that ahealthy,well-managed urban forest provides. The Town received a "Quality in IT Practices Award" in 2010 from the Municipal Information Systems Association of California (MISAC) for meeting or exceeding IT best practices. MISAC is a stale -wide organization that promotes leadership. education, and access to resources for local agency technology professionals in order to enhance local government services andellectiveness. lls Quality in IT Practices program recognizes the performance levels of ITgoeernance in municipal government. Economic Development Award of Excellence The CaliforniaAssaciation for Local Economic Development (CALED) Awards of Excellence Program brings statewide public and professional recognition to projects and programs that have made significant contributions to the field of economic development. In April, the Town and the Los Gatos Chamber of Commercewere awarded the Grand Prize for the 2nd Saturdays promotional program. Cosponsored by the Town and the Chamber, and involving over 75 participating businesses, 2nd Saturdays featured special offers, music, and entertainment to promote Los Gatos businesses. The event was promoted locally to encourage residents to shop locally, as well as regionally to attract visitors to the community. Businesses reported an increase in customers and sales, and residents and visitors enjoyed the vibrant amb®nce. Budget Recognition and Awards For over a decade, the Town has received the Government Finance Officers Association of the United States and Canada (GFOA) Distinguished Budget Presentation Award for its annual Operating Budges, including an award for Fiscal Year 2010/II. In order to earn this award. the Town budget must be rated as proficient in lour guideline categories, designed to assess how well the budget serves as a policydocument a financial plan, an operations guide, and a communications guide. The Town also received once again the Certificate of Achievement for Excellence in Financial Reporting from GFOA for its Town of Los Gatos Annual Report Fiscal Yeas 20102011 Comprehensive Annual Financial Report (QAFR) for the fiscal year ending June 39, 2010. The Certificate of Achieveme nt is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government agency and its management The Town's financial report was judged by an impartial panel, which determined [Inc the report demonstrated a constructive "spirit nl lull disclosure' to clearly communicate its financial story and motivate potential users and user groups to read the CAR. Fiscal Perspective Town of Los Gatos FY 2011/12 Budget The Los Gatos annual Operating, Capital, and Redevelopment Budget isa numerical representation of the lbwn's policies, goals, and priorities.The Town budget is an action plan That lakes into account the current and longterm fiscal picture, as well as high priority community needs, Including infrastructure and public safety, library, and park services. General Fund Like many communities all over the country. the Town Is challenged by the slow recovery of the unprecedented economic recession. During This time, the Town has worked diligently to balance its budget each year without relying on "one -lime fixes." This tough work will continue in FY 2011/12, with General Pend revenue projections of minimal to no growth. The Town's largest sources of revenue are sales tax and property taxes. The revenue impact, combined with significant adjustments to the cost of doing business, resulted in a budget gap ol $1.3 million for the year. This$1.3 million shortfall was approximately 5%of the total General Fund operating budget. Adding to the lbwvnis economic uncertainty is the State of California's budget situation. To balance its budget deficit of $20.6 billion, the state plans to eliminate redevelopment agencies and reduce other local landing sources from cities and towns. In order to retain its redevelopment funding, it is anticipated that the TOM will be forced to pay a one -lime amount of approximately $2.5 million in redevelopment funds and an additional $000,000 in ongoing payments to the stale.A decision has notyet been made whether to pay this "ransom" to the stale to maintain the Town's redevelopment funding. The Town will also lose $110,000 in Vehicle License Fee (VLF) monies from its General Fund. Tim Thms will continue to workproactivelywilh its legislators, the California Redevelopment Association (CRA), and the League of California Cities to protect and preserve local revenue. The Towns pastconservaeiva financial practices and prompt action in response to the economic crisis have positioned it well to address its projected shortfall and unantkipated state takeaways. Unlikesome'olherjurisdielions, the FY 2011/12 budget is balanced and reflects reductions That maintain vital core services. The outlook for the following year and beyond remains guarded, however. Capital Projects Given the challenges of the current economic climate, the Town continues to invest and preserve its hfrastruclure through maintenance efforts and the addition of much needed capital assets, including the new library and the Creekside Sports Park Many of these projects are funded through grant and redevelopment funds, and operational savings from prior years. This year's budget provides over $1.1 million to maintain the Tow115 street infrastructure, and also funds other key projects for traffic safety, park improvements, and technology system enhancements. Looking Forward For the foreseeable fume, the Town expects fiscal challenges and uncertainties until the global, national, and local economies improve and structural changes are made. The Town recently learned that one of its largest retail sales lax providers, NetBix, will be changing its business operations model, resulting in reduced sales tax revenue for the Town. Anticipating this potential loss, the Town established and funded a budget stabilization reserve usinga portion of the Netflix sales lax revenue to weather future economic changes. Diversification continues to be an important objective and to that end, the Town is moving forward with key economic devebpmeut efforts, including the Las Gatos Boulevard Plan and North FortySpecific Plan, and maintaining its outreach and support ol local businesses. In light of anticipated continuing deficits, the Town will continue to explore opportunities to enhance service deliveryand lower operating costs through resource and workload redeployments and organisational restructuring. On a positive note, the core assets of Los Gatos remain strong. including an enviable downtown, a beautiful environmental setting, fundamentally strong real estate, and an active and engaged population, all of which contribute to Los Gatos' high quality of life. General Fund Sources FY 2011/2012 (S33.4 Million) Sae, & ate Tae P,a perry Tar 151057.2451 MIN MI • In Other somas (53,505,95T) Town Services 02.571.951) aF aaakau Pmp6MTax (52,166,930 Dames & Permru 01.902.3351 Franchise Fees ($1,316,630) 0 er Taxes (S1,497,945) Transient Occupancy Tax (5935.0201 e,9urernmenta I ($239,a93) a rest (P13,960 es & Forfeitures (5597,856) una Transfers In(S415.3201 4 6 General Fund Uses FY 2011/2012 ($36.3 Million) & Public Works (S5,720,908) anan,fer Out (53.350,400) on Departmental (53,24%I95) y Development (S3,n10,624) rim ration Services ($2.ies.005) Debt Payment (52,094,222) ary (S5.921.339) Town Attorney (5222,041) Town council 0209,1e4 Town af Los Gatos Annual Report Fiscal Year 20102011 8 For More Information Town of Los Gatos Civic Center 110 East Main Street Los Gatos,CA 95030 Telephone (408) 354-6832 Fax (408) 399-5786 Email ManagereLasGatosCA.gov Websile www.LosGatosCA.gov Town of Lae Gatos Annual Report fiscal Year 2010'2011 On the Horizon New Library Grand Opening Without a doubt, the most significant event on the horizon for the coming fiscal7ear is the grand opening el the new Los Gatos Library. Targeted for early2012, the grand opening will mark the fulfillment of a long -held community desire far a newlibrary. The grand opening will actually be a series of events to introduce the community to its new treasure; to biggest celebration will be for the general public, when the ribbon is cut and the doors are opened to the grand lobby. Donors, who have generously contributed a total expected to exceed 62 million toward furniture, fixtures, and equipment, will be invited to a donor appreciation event as part of the multiple -day festivities. Watch the Town's website,www.LosGatosCA.gov, and local papers for the announcements about themuch-awaited grand opening ceremonies. Opening Day Collection la preparation for the new library building. librarians are busy ordering an opening day collection of new books, made possible by generous donation bya library patron. Baker and Taylor's Customized Library Services will catalog and process the new books, and hold them in a warehouse in Illinois until closer to opening day. The new collection will focus on new and popular items and will greatly add to the shell appeal al the new library. Town of Los Gatos PO Box 949 Los Gatos, CA 95031 Sustainability Plan The 2020 General Plan, the Tawn's key planning documentandblueprinl for its future, requires that the Town develop a plan to control and reduce greenhouse gas (OHO) emissions. In order to reach this goal, the Town is currently in the process of developing aSustainability Plan. The Sustainability flan will include a GHG emission reduction target consistent with Sate Assembly Bill 32, strategies to reduce GHG emissions, and methods to monitor and report progress of reduction strategies. A baseline community and government operations GIIG inventory is underway; the Sustainability Plan is scheduled far completion in June 2012.ASustainability Plan community workshop will be held in the fall of 2011. POSTAL CUSTOMER PRSRT STD US Postage PAID Los Gatos, CA 95030 Permit 457 Pointed on recyded paper skitsoy mks..