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Attachment 1dC - 1 0 50 100 150 200 250 300 FINANCIAL SUMMARIES Total Revenues and Expenditures The summary schedules provide a high level overview of the entire Town budget in a fund-type summary as well as by fund-specific and category-specific summary levels. Total Budgeted Fund Activity ........................................................................................................................ C – 3 Total Revenues, Expenditures, and Fund Balance Trend Information ........................................................... C – 4 Total Revenues, Expenditures, and Fund Balance – 5 Year Summary ............................................................ C – 6 Total Town Revenues – by Fund ..................................................................................................................... C – 10 Total Town Expenditures – by Fund ............................................................................................................... C – 12 Total Town Revenues – by Category ............................................................................................................. C – 14 Total Town Expenditures – by Category ......................................................................................................... C – 15 General Fund Revenues and Expenditures The summary schedules identify the Town’s General Fund operating sources and uses at the Department and category levels. The Fund Balance Activity summarizes the General Fund sources and uses which impact the resulting ending fund balance. General Fund Revenues – by Department .................................................................................................... C – 16 General Fund Expenditures – by Department ................................................................................................ C – 17 General Fund Revenues – by Category ........................................................................................................... C – 18 General Fund Expenditures – by Category ..................................................................................................... C – 20 General Fund Tax Revenues per Capita – Cities of Santa Clara County ......................................................... C – 21 General Fund Tax Revenues – 10 Year History of Key Tax Revenues ............................................................ C – 22 General Fund – Fund Balance Activity ............................................................................................................ C – 23 Operating Transfers The schedule summarizes activity by fund of estimated fund transfers for the prior fiscal year and budgeted for the adopted fiscal year. Schedule of Interfund Transfers ..................................................................................................................... C – 24 C - 2 FINANCIAL SUMMARIES Fund Balance With two fund balance schedules, one summarizes activity and ending fund balances as a quick look at the ongoing status of the individual funds, and the second provides a 5 year trend. Fund Balance Activity Summary – by Fund .................................................................................................... C – 25 5 Year Comparative Fund Balance – by Fund ................................................................................................. C – 27 Departmental Budgets Department level schedules provide an overview of funding source and expenditure use by each program within the Department. Department Revenues – by Program ............................................................................................................. C – 29 Department Expenditures – by Program ........................................................................................................ C – 31 In-Kind Donations The Town provides in-kind donations to local non-profits as described in this section. In-Kind Donations ........................................................................................................................................... C – 33 Fee-Related Project List The Town has identified potential projects for the use of collected development impact fee. Fee Related Project List .................................................................................................................................. C – 34 Staffing The labor position schedules provide a summary level view of operational staffing assignments, funding, and trends. The Personnel Changes Summary discusses staffing levels and labor costs in more detail. Departmental Staff by Fund ........................................................................................................................... C – 36 Summary of FTEs by Department ................................................................................................................... C – 37 5 Year History of Funded Positions by Department ...................................................................................... C – 38 Summary of Personnel Changes .................................................................................................................... C – 39 Positions by Home Department ..................................................................................................................... C – 43 C - 3 TOTAL BUDGETED FUND ACTIVITY SUMMARY FY 2018/19 This Total Budgeted Fund Activity Summary schedule groups the Town’s funds into four categories based on fund purpose: Operating Funds - Ongoing operations are funded out of the various Operating Funds. This includes the Town’s General Fund Departmental program operations, as well as special revenue activities and internal service functions. Fiduciary Funds - These funds include Trust and Agency funds and are held in a fiduciary capacity, with little variation in activity. The Library Trusts are held for special uses for the Library. Capital Funds - Representing the capital improvement program activity, the Capital Funds reflect the significant progress to complete capital projects and the resulting decrease in fund balances. RDA Successor Agency Private Purpose Trust Fund - As required, a private purpose trust fund was established to account for the assets and liabilities transferred from the dissolution of the Town’s former Redevelopment Agency (RDA) and the continuing operations related to the existing RDA obligations. The Successor Agency’s Private Purpose Trust Fund has been incorporated into the Town’s operating budget. Estimated Revenues,Expenditures,Estimated Fund Balance Fund Balance PY Carryfwds PY Carryfwds Fund Balance Change 7/1/2017 & Transfers & Transfers 6/30/2018 From PY Operating Funds Governmental Funds General Fund*26,032,408$ 42,363,657$ 47,522,071$ 20,873,994$ -19.8%(1) Housing Conservation Program Fund 177,240 - - 177,240 0.0% Community Dev Block Grant Fund (10,587) - - (10,587) 0.0% Urban Run-Off Source Fund 76,988 584,394 559,482 101,900 32.4%(2) Blackwell Assessment District Fund 11,831 3,210 10,907 4,134 -65.1%(3) Kennedy Assessment District Fund 36,382 10,605 31,506 15,481 -57.4%(3) Gemini Assessment District Fund 25,993 4,750 12,544 18,199 -30.0%(3) Santa Rosa Assessment District Fund 57,775 5,000 19,472 43,303 -25.0%(3) Vasona Assessment District Fund 47,398 10,075 18,644 38,829 -18.1%(3) Hillbrook Assessment District Fund 15,719 6,040 19,757 2,002 -87.3%(3) Proprietary Funds - Internal Service Funds ABAG Self Insurance Fund 899,392 376,187 641,361 634,218 -29.5%(4) Worker's Comp Self Insurance Fund 756,410 878,386 1,218,202 416,594 -44.9%(4) Information Technology Fund 2,111,874 334,478 1,211,775 1,234,577 -41.5%(5) Office Stores Fund 201,202 118,000 134,500 184,702 -8.2% Equipment Replacement Fund 1,994,298 1,070,000 1,572,945 1,491,353 -25.2%(5) Vehicle Maintenance Fund 277,213 376,655 376,655 277,213 0.0% Facilities Maintenance Fund 311,278 1,209,089 1,151,086 369,281 18.6% Total Operating Funds 33,022,814$ 47,350,526$ 54,500,907$ 25,872,433$ -21.7% Trust & Agency Funds Library Trust Fund 76,547$ 75,050$ 73,500$ 78,097$ 2.0% Betty McClendon Trust Fund 84,126 700 - 84,826 0.8% Barbara J Cassin Trust Fund 353,361 2,900 - 356,261 0.8% Total Trust & Agency Funds 514,034$ 78,650$ 73,500$ 519,184$ 1.0% Capital Funds GFAR*15,899,715$ 4,150,562$ 4,154,303$ 15,895,974$ 0.0% Grant Funded CIP Projects Fund (318,503) 574,046 950,446 (694,903) -118.2% Storm Drain #1 Fund 804,218 49,010 50,000 803,228 -0.1% Storm Drain #2 Fund 1,050,086 50,240 50,000 1,050,326 0.0% Storm Drain #3 Fund (64,651) 1,860 50,000 (112,791) -74.5%(4) Traffic Mitigation Fund 248,541 354,874 334,874 268,541 8.0% Construction Tax-Undergrounding Fund 2,973,396 44,310 2,218,000 799,706 -73.1%(4) Gas Tax Fund 1,434,016 1,324,204 1,324,134 1,434,086 0.0% Total Capital Projects Funds 22,026,818$ 6,549,106$ 9,131,757$ 19,444,167$ -11.7% Successor Agency of the Los Gatos RDA Fund SA- Trust Fund (Budgetary Fund Balance)3,697,582$ 3,828,296$ 3,831,229$ 3,694,649$ -0.1% Total Successor Agency of the Los Gatos RDA Fund 3,697,582$ 3,828,296$ 3,831,229$ 3,694,649$ -0.1% TOTAL ALL FUNDS 59,261,248$ 57,806,578$ 67,537,393$ 49,530,433$ -16.4% * Major Funds (1) One-time use of General Fund Capital Reserve for authorized capital projects, Internal Service Fund transfers and payment to the IRS 115 Pension Trust (2) Additional revenue source identified to cover increasing cost of Urban Run-off Program driven by State mandates (3) One-time Capital Project budgeted for FY 2018/19 (4) Based on estimated claims activity (5) Equipment Replacement and Information Technology Fund reflects increased acquisition activities for FY 2018/19 C - 4 TOTAL TOWN REVENUES AND EXPENDITURES FUND BALANCE TREND INFORMATION Note: Expenditures and Transfers Out may exceed Revenues due to the inclusion of planned and carry- forward capital projects and payments from General Fund reserves to the Town’s Pension and OPEB Trust Funds. Year End Reference Revenues & Transfers In Expenditures & Transfers Out Designated Fund Balance 2009/10 Actuals 58,959,239$ 51,969,267$ 62,283,427$ 2010/11 Actuals 68,176,239$ 62,169,737$ 69,273,396$ 2011/12 Actuals 53,064,630$ 72,439,477$ 75,279,896$ 2012/13 Actuals 69,593,000$ 75,659,793$ 56,038,624$ 2013/14 Actuals 54,528,656$ 55,545,003$ 51,370,329$ 2014/15 Actuals 63,470,973$ 56,593,416$ 58,247,886$ 2015/16 Actuals 54,234,948$ 50,881,063$ 61,601,771$ 2016/17 Actuals 62,813,174$ 62,912,315$ 61,502,630$ 2017/18 Estimated 55,901,597$ 58,142,978$ 59,261,248$ 2018/19 Proposed 57,806,578$ 67,537,393$ 49,530,432$ C - 5 TOTAL TOWN REVENUE, EXPENDITURE, AND FUND BALANCE TREND INFORMATION The Town continues to focus on priority issues that involve maintaining public safety and Town infrastructure including streets and parks; and providing library, community development, and other services. These priorities are coordinated with other Core Goals that protect the Town’s fiscal health and ensure cost efficient and effective delivery of Town-wide administrative services. The Town’s proactive approach to reducing operating expenditures, identifying revenue enhancements, and implementing operating efficiencies has been an effective fiscal approach. Reflecting the strength of the local economy, FY 2018/19 operating budget is a balanced budget, with use of General Fund reserves dedicated for one-time uses. The FY 2018/19 Budget anticipates a surplus of $700,000 maintains existing service levels while recommending modest additions in strategically important areas. This budget incorporates investments toward future equipment replacement, additional annual discretionary pension payments, and increased capacity for the Town’s burgeoning technology infrastructure. The FY 2018/19 budget has been balanced largely due to revenue enhancements, resulting from the positive economy and the Town’s growth in the economically sensitive revenue sources such as Property Tax, Transient Occupancy Tax, and Business Licenses. In regard to expenditures, the Town’s employer-paid benefits are expected to increase for the foreseeable future, including obligated pension contributions, the pre-funding of premiums for retiree health coverage, and the increasing costs of current health plans. Specific trends affecting the fund balance forecast include: Salaries and Benefits Increases – As in most municipalities, services are provided directly by employees to the Town’s residents, businesses, and visitors. As a result, the cost of salaries and benefits are a significant portion of the budget. Salaries and benefits account for 40.8% of the Town’s total expenditures in FY 2018/19. When fiscal conditions worsened during the recession of 2008, employees participated in wage freezes and unpaid furloughs to assist in achieving a balanced budget. After multiple years of such concessions, the Town discontinued the furlough program in FY 2014/15 and implemented a 2% general wage increase for non-sworn employees and a 1.5% cash payment in lieu of an increase on base salary for sworn employees. A 2% increase in salaries was authorized by Council resolution, effective July 1, 2015 for nonsworn groups and effective October 1, 2015 for sworn personnel. A 2.5% across the board salary increase was approved for all three bargaining units for both FY 2016/17 and FY 2017/18. Salary increases are not reflected in the proposed budget as labor negotiations with the Town’s unions are pending. The Town of Los Gatos provides a defined pension plan for all full-time employees as part of their total compensation package. Pension contributions are a portion of the Town’s budget, as the Town is obligated to contribute a mandatory amount established by the California Public Employees Retirement System (CalPERS) as a percent of salary. The rates are established by actuarial formula and are controlled by the policies adopted in the Public Employment Retirement Law (PERL). The Town’s employer pension contributions are expected to increase reflecting the lower than expected CalPERS investment earnings for its pension trust coupled with a CalPERS January 2017 action to lower its discount over time from 7.5% to 7.0%. The rate will increase from 39.60% in FY 2017/18 to 46.085% in FY 2018/19 for classic sworn employees and from 12.73% in FY 2017/18 to 13.961% in FY 2018/19 for PEPRA sworn employees. For all other employees, the rate will increase from 27.40% in FY 2017/18 to 30.87% in FY 2018/19. The Public Employees’ Pension Reform Act (PEPRA), effective January 1, 2013, implemented lower pension tiers for employees who are new to the PERS pension system. Under PEPRA, the formula is 2% at age 62 for non-sworn and 2.7% at age 57 for sworn employees. While this does not provide immediate cost savings, it is anticipated to reduce future salary and benefit expenditures in the next 10 to 15 years. The Town’s cost to fund current medical plans experienced an increase for FY 2018/19. To assist with cost-containment, employees are contributing a share of dependent premiums. In addition, all personnel that were previously funded in Internal Service Fund Programs are budgeted the General Fund beginning in FY 2018/19, increasing total General Fund salaries and benefits expenditures while decreasing the Internal Service Fund charges by the same amount. Other Cost Drivers – A significant cost driver for the Town is energy costs, including fuel for safety and maintenance vehicles, water for parks and landscaping, natural gas and electricity to heat and cool buildings, and lighting for street lights, parking lots, and Town facilities. The Town has taken steps to ensure water conservation and energy efficiency in Town facilities and is looking at ways to reduce fuel costs by utilizing electric vehicles and installing electric vehicle charging stations throughout the Town. Staff will continue to explore energy alternatives to reduce costs. Revenue Recovery – On a positive note, all signs indicate that the economy remains strong as the Town is anticipating increases in many economically sensitive revenues such as Property Tax, Transient Occupancy Tax (TOT), Business License Tax, and Franchise Fees for FY 2018/19. General Fund revenues for FY 2018/19, (excluding debt payments and fund transfers in) are 3.4% greater than budgeted prior year revenues. This increase is largely due to forecasted increases in Property Tax, Business License Tax, and Transient Occupancy Tax (TOT) as a result of strong travel and tourism offset by declines in forecasted Sales Tax. C - 6 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 20 1 8 / 1 9 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 20 1 8 / 1 9 A c t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d A c t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d RE V E N U E S Pr o p e r t y T a x 10 , 1 1 3 , 2 8 7 $ 10 , 7 7 9 , 4 3 4 $ 11 , 5 1 8 , 2 5 7 $ 11 , 9 5 7 , 3 5 2 $ 12 , 5 0 7 , 0 7 1 $ 17 $ 13 $ - $ - $ - $ VL F B a c k f i l l 2, 8 1 8 , 3 1 6 2, 9 8 4 , 0 2 3 3, 2 3 7 , 9 5 5 3, 4 4 7 , 5 8 4 3, 4 8 2 , 0 6 0 - - - - - Sa l e s & U s e T a x 8, 2 0 2 , 6 7 8 7, 5 0 1 , 1 7 5 9, 1 7 1 , 3 7 3 7, 6 8 1 , 5 4 6 7, 7 4 4 , 2 0 8 - - - - - Fr a n c h i s e F e e s 2, 2 1 5 , 4 3 0 2, 2 5 8 , 8 9 2 2, 3 6 6 , 9 0 8 2, 3 1 7 , 3 9 0 2, 3 8 6 , 9 1 0 - - - - - Tr a n s i e n t O c c u p a n c y T a x 1, 8 9 6 , 7 2 1 1, 9 4 3 , 1 6 6 2, 3 2 2 , 9 1 0 2, 2 5 0 , 0 0 0 2, 2 7 2 , 5 0 0 - - - - - Ot h e r T a x e s 1, 8 0 9 , 6 2 0 1, 4 7 5 , 4 2 5 1, 7 2 6 , 1 2 8 1, 6 5 7 , 0 0 0 1, 6 5 7 , 0 0 0 37 , 7 2 3 28 , 0 9 6 38 , 3 7 0 38 , 2 2 0 38 , 2 2 0 Li c e n s e s & P e r m i t s 3, 7 5 7 , 5 9 0 3, 5 1 2 , 0 1 9 3, 0 3 8 , 5 1 1 2, 9 0 4 , 2 8 0 3, 3 0 4 , 1 9 9 - 30 , 0 0 0 30 , 7 8 0 23 1 , 3 2 3 23 1 , 3 2 3 In t e r g o v e r n m e n t a l 1, 0 0 4 , 6 6 1 98 4 , 5 0 7 90 8 , 2 8 5 66 7 , 5 1 3 64 6 , 6 4 0 17 6 , 7 0 5 6, 0 1 1 (6 , 0 1 1 ) - - To w n S e r v i c e s 3, 6 9 8 , 0 9 1 3, 4 8 9 , 2 1 6 3, 2 8 4 , 2 9 5 3, 3 8 8 , 1 3 1 4, 4 5 7 , 2 5 8 32 8 , 8 6 8 33 8 , 8 1 3 34 1 , 8 4 6 35 3 , 0 7 1 35 3 , 0 7 1 In t e r n a l S r v c R e i m b u r s e m e n t - - - - - - - - - - Fi n e s & F o r f e i t u r e s 84 2 , 4 7 0 85 8 , 9 2 9 91 7 , 1 0 6 68 3 , 5 4 7 63 1 , 4 0 0 - - - - - In t e r e s t 43 0 , 4 7 6 62 0 , 8 9 5 17 1 , 6 5 3 27 0 , 7 2 3 26 7 , 8 0 6 2, 6 3 5 1, 4 8 0 1, 5 7 0 1, 4 6 0 1, 4 6 0 Ot h e r S o u r c e s 1, 9 0 5 , 7 8 9 90 3 , 0 3 9 2, 3 1 0 , 9 3 5 97 5 , 8 9 3 55 2 , 6 9 6 3, 3 5 0 - 10 2 , 6 5 4 - - De b t S e r v i c e R e i m b u r s e m e n t 1, 9 2 8 , 0 5 6 1, 9 2 2 , 3 9 8 1, 9 2 3 , 3 0 3 1, 9 1 4 , 7 3 9 1, 9 0 9 , 0 7 3 - - - - - Tr a n s f e r s I n 31 1 , 8 1 0 2, 4 3 6 , 4 0 5 31 3 , 8 2 5 54 4 , 8 3 6 54 4 , 8 3 6 10 0 , 0 0 0 50 , 0 0 0 - - - TO T A L R E V E N U E S 40 , 9 3 4 , 9 9 5 $ 41 , 6 6 9 , 5 2 3 $ 43 , 2 1 1 , 4 4 4 $ 40 , 6 6 0 , 5 3 4 $ 42 , 3 6 3 , 6 5 7 $ 64 9 , 2 9 8 $ 45 4 , 4 1 3 $ 50 9 , 2 0 9 $ 62 4 , 0 7 4 $ 62 4 , 0 7 4 $ EX P E N D I T U R E S Sa l a r i e s & B e n e f i t s 20 , 6 5 8 , 1 7 3 $ 21 , 3 4 2 , 2 7 8 $ 21 , 8 8 4 , 8 5 5 $ 23 , 1 5 9 , 2 6 7 $ 27 , 1 8 2 , 2 1 7 $ 10 8 , 5 5 6 $ 11 1 , 6 6 4 $ 12 6 , 0 0 5 $ 13 2 , 8 2 9 $ 16 3 , 3 6 7 $ Op e r a t i n g E x p e n d i t u r e s 8, 4 4 0 , 1 3 6 8, 1 3 7 , 8 5 8 8, 8 9 6 , 2 0 9 9, 4 7 4 , 8 5 7 12 , 9 3 2 , 8 9 6 ** 31 9 , 4 6 8 35 5 , 0 2 1 35 5 , 2 4 6 41 4 , 5 3 6 42 4 , 5 7 2 Gr a n t s & A w a r d s 19 7 , 0 7 4 19 4 , 1 5 5 20 9 , 3 8 1 20 1 , 5 2 0 22 7 , 0 0 0 - - - - - Fi x e d A s s e t s 75 , 4 4 2 41 1 , 8 2 0 - - - - - - 7, 4 0 7 75 , 0 9 3 In t e r e s t - - - - - - - - - - In t e r n a l S e r v i c e C h a r g e s 3, 3 2 5 , 3 7 3 3, 5 3 9 , 9 3 6 3, 5 5 2 , 1 5 7 3, 8 8 6 , 3 0 1 2, 4 8 5 , 6 6 4 4, 8 6 7 5, 5 1 9 6, 2 1 8 6, 8 3 3 4, 3 5 9 Ca p i t a l P r o j e c t s - - - - - - - - - - Ca p i t a l A c q u i s i t i o n s - - - - - - - - - - De b t S e r v i c e 1, 9 2 8 , 0 5 6 1, 9 2 2 , 3 9 8 1, 9 2 3 , 3 0 3 1, 9 1 4 , 7 3 9 1, 9 0 9 , 0 7 3 - - - - - Tr a n s f e r s O u t 7, 3 8 6 , 4 9 1 58 1 , 0 1 4 7, 2 9 8 , 1 8 7 3, 0 8 2 , 2 2 7 2, 7 8 5 , 2 2 0 18 1 , 6 2 5 4, 9 2 0 4, 9 2 0 4, 9 2 0 4, 9 2 0 TO T A L E X P E N D I T U R E S 42 , 0 1 0 , 7 4 5 $ 36 , 1 2 9 , 4 5 9 $ 43 , 7 6 4 , 0 9 2 $ 41 , 7 1 8 , 9 1 1 $ 47 , 5 2 2 , 0 7 0 $ 61 4 , 5 1 6 $ 47 7 , 1 2 4 $ 49 2 , 3 8 9 $ 56 6 , 5 2 5 $ 67 2 , 3 1 1 $ Ne t I n c r e a s e ( D e c r e a s e ) (1 , 0 7 5 , 7 5 0 ) 5, 5 4 0 , 0 6 4 (5 5 2 , 6 4 8 ) (1 , 0 5 8 , 3 7 7 ) (5 , 1 5 8 , 4 1 3 ) 34 , 7 8 2 (2 2 , 7 1 1 ) 16 , 8 2 0 57 , 5 4 9 (4 8 , 2 3 7 ) Be g i n n i n g F u n d B a l a n c e 23 , 1 7 9 , 1 1 7 22 , 1 0 3 , 3 6 7 27 , 6 4 3 , 4 3 1 27 , 0 9 0 , 7 8 3 26 , 0 3 2 , 4 0 6 35 2 , 3 0 3 38 7 , 0 8 5 36 4 , 3 7 4 38 1 , 1 9 4 43 8 , 7 4 3 En d i n g F u n d B a l a n c e * 22 , 1 0 3 , 3 6 7 $ 27 , 6 4 3 , 4 3 1 $ 27 , 0 9 0 , 7 8 3 $ 26 , 0 3 2 , 4 0 6 $ 20 , 8 7 3 , 9 9 3 $ 38 7 , 0 8 5 $ 36 4 , 3 7 4 $ 38 1 , 1 9 4 $ 43 8 , 7 4 3 $ 39 0 , 5 0 6 $ * Y e a r E n d F u n d B a l a n c e r e p r e s e n t s G e n e r a l F u n d 1 1 1 ( L o n g T e r m C o m p e n s a t e d A b s e n c e s i s a c c o u n t e d i n F u n d 9 6 1 ) . ** O p e r a t i n g e x p e n d i t u r e s i n c l u d e $ 3 . 1 m i l l i o n o f P e n s i o n / O P E B R e s e r v e p a y m e n t s t o t h e T o w n ' s I R S 1 1 5 P e n s i o n T r u s t . GE N E R A L F U N D SP E C I A L R E V E N U E F U N D S C - 7 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 20 1 8 / 1 9 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 20 1 8 / 1 9 A c t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d A c t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d RE V E N U E S Pr o p e r t y T a x - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ VL F B a c k f i l l - - - - - - - - - - Sa l e s & U s e T a x - - - - - - - - - - Fr a n c h i s e F e e s - - - - - - - - - - Tr a n s i e n t O c c u p a n c y T a x - - - - - - - - - - Ot h e r T a x e s 13 5 , 9 5 9 44 , 4 5 3 23 , 1 6 5 40 , 0 0 0 40 , 0 0 0 - - - - - Li c e n s e s & P e r m i t s - - - - - - - - - - In t e r g o v e r n m e n t a l - - - - - - - - - - To w n S e r v i c e s 16 2 , 9 9 9 14 7 , 8 5 0 11 5 , 2 3 3 13 7 , 2 8 0 95 , 0 0 0 - - - - - In t e r n a l S r v c R e i m b u r s e m e n t 4, 1 0 6 , 9 5 5 4, 5 2 1 , 6 1 0 4, 5 5 2 , 4 0 7 4, 9 0 6 , 8 6 6 3, 4 8 1 , 4 1 4 - - - - - Fi n e s & F o r f e i t u r e s - - - - - - - - - - In t e r e s t 5 6 8 - - (1 , 8 6 9 ) 4, 8 6 3 4, 6 2 3 4, 1 5 0 4, 1 5 0 Ot h e r S o u r c e s 73 3 , 8 7 8 32 7 , 9 2 0 53 3 , 7 5 3 42 9 , 7 6 5 29 6 , 3 8 2 37 , 3 0 4 16 3 , 5 1 7 79 , 7 6 0 74 , 6 0 0 74 , 5 0 0 CI P P r o j R e i m b u r s e m e n t - - - - - - - - - - Tr a n s f e r s I n 53 1 , 0 6 6 - - 69 8 , 0 0 0 45 0 , 0 0 0 - 1, 3 8 0 - - - TO T A L R E V E N U E S 5, 6 7 0 , 8 6 2 $ 5, 0 4 1 , 8 3 9 $ 5, 2 2 4 , 5 6 6 $ 6, 2 1 1 , 9 1 1 $ 4, 3 6 2 , 7 9 6 $ 35 , 4 3 5 $ 16 9 , 7 6 0 $ 84 , 3 8 3 $ 78 , 7 5 0 $ 78 , 6 5 0 $ EX P E N D I T U R E S Sa l a r i e s & B e n e f i t s 1, 1 9 2 , 2 1 4 $ 1, 2 9 8 , 3 9 7 $ 3, 3 4 4 , 0 0 9 $ 1, 4 0 6 , 7 3 8 $ - $ - $ - $ - $ - $ - $ Op e r a t i n g E x p e n d i t u r e s 3, 1 0 6 , 7 0 2 3, 6 1 9 , 7 2 8 3, 5 6 4 , 5 4 5 3, 5 5 4 , 2 6 9 4, 2 8 3 , 5 7 9 87 , 7 4 4 16 0 , 2 0 9 75 , 4 9 8 96 , 6 7 3 73 , 5 0 0 Gr a n t s & A w a r d s - - - - - - - - - - Fi x e d A s s e t s 28 0 , 3 5 7 54 7 , 1 7 1 40 2 , 8 0 6 95 5 , 0 6 3 1, 7 2 2 , 9 4 5 - - - - - In t e r e s t - - - - - - - - - - In t e r n a l S e r v i c e C h a r g e s - 17 0 53 22 , 2 4 4 - - - - - - Ca p i t a l P r o j e c t s - - - - - - - - - - Ca p i t a l A c q u i s i t i o n s - - - - - - - - - - De b t S e r v i c e - - - - - - - - - - Tr a n s f e r s O u t 1, 4 4 0 , 7 1 4 1, 5 0 0 , 8 3 3 29 5 , 6 8 0 - 30 0 , 0 0 0 - 21 5 , 5 8 4 - - - TO T A L E X P E N D I T U R E S 6, 0 1 9 , 9 8 7 $ 6, 9 6 6 , 2 9 9 $ 7, 6 0 7 , 0 9 3 $ 5, 9 3 8 , 3 1 4 $ 6, 3 0 6 , 5 2 4 $ 87 , 7 4 4 $ 37 5 , 7 9 3 $ 75 , 4 9 8 $ 96 , 6 7 3 $ 73 , 5 0 0 $ Ne t I n c r e a s e ( D e c r e a s e ) (3 4 9 , 1 2 5 ) (1 , 9 2 4 , 4 6 0 ) (2 , 3 8 2 , 5 2 7 ) 27 3 , 5 9 7 (1 , 9 4 3 , 7 2 8 ) (5 2 , 3 0 9 ) (2 0 6 , 0 3 3 ) 8, 8 8 5 (1 7 , 9 2 3 ) 5, 1 5 0 Be g i n n i n g F u n d B a l a n c e 10 , 9 3 4 , 1 8 2 10 , 5 8 5 , 0 5 7 8, 6 6 0 , 5 9 7 6, 2 7 8 , 0 7 0 6, 5 5 1 , 6 6 7 78 1 , 4 2 1 72 9 , 1 1 2 52 3 , 0 7 9 53 1 , 9 6 4 51 4 , 0 4 1 En d i n g F u n d B a l a n c e 10 , 5 8 5 , 0 5 7 $ 8, 6 6 0 , 5 9 7 $ 6, 2 7 8 , 0 7 0 $ 6, 5 5 1 , 6 6 7 $ 4, 6 0 7 , 9 3 9 $ 72 9 , 1 1 2 $ 52 3 , 0 7 9 $ 53 1 , 9 6 4 $ 51 4 , 0 4 1 $ 51 9 , 1 9 1 $ IN T E R N A L S E R V I C E F U N D S TO T A L T O W N RE V E N U E S , E X P E N D I T U R E S & F U N D B A L A N C E F I V E - Y E A R S U M M A R Y L I B R A R Y T R U S T S & P A R K I N G A S S E S S M E N T F U N D S C - 8 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 20 1 8 / 1 9 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 20 1 8 / 1 9 A c t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d A c t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d RE V E N U E S Pr o p e r t y T a x - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ VL F B a c k f i l l - - - - - - - - - - Sa l e s & U s e T a x - - - - - - - - - - Fr a n c h i s e F e e s - - - - - - - - - - Tr a n s i e n t O c c u p a n c y T a x - - - - - - - - - - Ot h e r T a x e s 13 5 , 9 5 9 44 , 4 5 3 23 , 1 6 5 30 , 0 0 0 30 , 0 0 0 - - - - - Li c e n s e s & P e r m i t s 1, 2 3 0 , 0 6 8 66 2 , 9 9 8 65 8 , 6 6 0 62 6 , 4 9 2 84 2 , 9 3 4 - - - - - In t e r g o v e r n m e n t a l 1, 7 3 9 , 6 3 6 1, 0 2 7 , 7 9 2 79 8 , 0 1 6 1, 1 4 6 , 0 8 0 2, 6 5 7 , 7 0 3 10 3 , 0 0 9 40 , 8 4 0 19 , 6 7 2 17 , 6 6 8 10 , 0 0 0 To w n S e r v i c e s - - 7, 5 0 0 - - - - - - - In t e r n a l S r v c R e i m b u r s e m e n t - - - - - - - - - - Fi n e s & F o r f e i t u r e s - - - - - - - - - - In t e r e s t (4 , 3 7 6 ) 75 , 9 3 2 66 , 9 5 1 44 , 1 2 0 44 , 1 3 0 3, 5 4 4 2, 3 9 3 6, 3 1 0 1, 0 5 0 15 0 Ot h e r S o u r c e s 66 8 , 9 5 6 59 1 , 1 2 3 74 1 , 1 6 4 14 3 , 9 7 7 33 9 , 1 1 9 - - - - - CI P P r o j R e i m b u r s e m e n t - - - - - 3, 8 9 2 , 5 3 0 3, 8 7 1 , 0 8 2 3, 8 6 8 , 2 6 7 3, 8 3 4 , 7 0 9 3, 8 1 8 , 1 4 6 SC C R P T T F R e i m b u r s e m e n t - - - - - - - - - - Tr a n s f e r s I n 8, 4 1 1 , 0 5 7 58 2 , 8 0 0 7, 5 9 3 , 8 6 7 2, 4 8 2 , 2 2 7 2, 6 3 5 , 2 2 0 - - - - - TO T A L R E V E N U E S 12 , 1 8 1 , 3 0 0 $ 2, 9 8 5 , 0 9 8 $ 9, 8 8 9 , 3 2 3 $ 4, 4 7 2 , 8 9 6 $ 6, 5 4 9 , 1 0 6 $ 3, 9 9 9 , 0 8 3 $ 3, 9 1 4 , 3 1 5 $ 3, 8 9 4 , 2 4 9 $ 3, 8 5 3 , 4 2 7 $ 3, 8 2 8 , 2 9 6 $ EX P E N D I T U R E S Sa l a r i e s & B e n e f i t s - $ - $ - $ - $ - $ 13 , 4 5 5 $ 14 , 1 0 2 $ (1 0 , 0 0 4 ) $ 1, 4 4 8 $ 1, 5 0 9 $ Op e r a t i n g E x p e n d i t u r e s - 6, 0 9 1 3, 6 5 4 - - 5, 5 6 5 5, 3 5 7 16 , 7 7 0 9, 0 7 0 5, 2 7 0 Gr a n t s & A w a r d s - - - - - - - - - - Fi x e d A s s e t s - - - - - - - - - - In t e r e s t - - - - - 93 8 , 0 5 5 89 7 , 3 9 8 80 2 , 1 6 6 80 9 , 7 3 9 75 9 , 0 7 3 In t e r n a l S e r v i c e C h a r g e s - - - - - 55 2 56 1 75 59 4 Ca p i t a l P r o j e c t s 3, 6 1 8 , 6 0 7 2, 2 9 3 , 2 4 7 6, 8 6 3 , 3 7 4 5, 3 4 4 , 5 8 4 8, 5 9 8 , 1 4 3 - - - - - Ca p i t a l A c q u i s i t i o n s 21 , 0 3 2 - - - - - - - - - De b t S e r v i c e - - - - - 2, 9 1 8 , 0 5 6 2, 9 4 7 , 3 9 8 2, 9 8 8 , 3 0 3 3, 0 1 9 , 7 3 9 3, 0 5 9 , 0 7 3 Tr a n s f e r s O u t 21 9 , 9 3 3 69 8 , 5 8 0 30 8 , 9 0 5 63 1 , 6 1 6 53 3 , 6 1 6 12 5 , 1 6 9 69 , 6 5 4 - 6, 3 0 0 6, 3 0 0 TO T A L E X P E N D I T U R E S 3, 8 5 9 , 5 7 2 $ 2, 9 9 7 , 9 1 8 $ 7, 1 7 5 , 9 3 3 $ 5, 9 7 6 , 2 0 0 $ 9, 1 3 1 , 7 5 9 $ 4, 0 0 0 , 8 5 2 $ 3, 9 3 4 , 4 7 0 $ 3, 7 9 7 , 3 1 0 $ 3, 8 4 6 , 3 5 5 $ 3, 8 3 1 , 2 2 9 $ Ne t I n c r e a s e ( D e c r e a s e ) 8, 3 2 1 , 7 2 8 (1 2 , 8 2 0 ) 2, 7 1 3 , 3 9 0 (1 , 5 0 3 , 3 0 4 ) (2 , 5 8 2 , 6 5 3 ) (1 , 7 6 9 ) (2 0 , 1 5 5 ) 96 , 9 3 9 7, 0 7 2 (2 , 9 3 3 ) Be g i n n i n g F u n d B a l a n c e 12 , 5 0 7 , 8 1 5 20 , 8 2 9 , 5 4 3 20 , 8 1 6 , 7 2 3 23 , 5 3 0 , 1 1 3 22 , 0 2 6 , 8 0 9 3, 6 1 5 , 4 9 5 3, 6 1 3 , 7 2 6 3, 5 9 3 , 5 7 1 3, 6 9 0 , 5 1 0 3, 6 9 7 , 5 8 2 En d i n g F u n d B a l a n c e 20 , 8 2 9 , 5 4 3 $ 20 , 8 1 6 , 7 2 3 $ 23 , 5 3 0 , 1 1 3 $ 22 , 0 2 6 , 8 0 9 $ 19 , 4 4 4 , 1 5 6 $ 3, 6 1 3 , 7 2 6 $ 3, 5 9 3 , 5 7 1 $ 3, 6 9 0 , 5 1 0 $ 3, 6 9 7 , 5 8 2 $ 3, 6 9 4 , 6 4 9 $ TO T A L T O W N RE V E N U E S , E X P E N D I T U R E S & F U N D B A L A N C E F I V E - Y E A R S U M M A R Y CA P I T A L P R O J E C T F U N D S SU C C E S S O R A G E N C Y T O T H E L O S G A T O S R D A C - 9 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 20 1 8 / 1 9 A c t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d RE V E N U E S Pr o p e r t y T a x 10 , 1 1 3 , 3 0 4 $ 10 , 7 7 9 , 4 4 7 $ 11 , 5 1 8 , 2 5 7 $ 11 , 9 5 7 , 3 5 2 $ 12 , 5 0 7 , 0 7 1 $ VL F B a c k f i l l 2, 8 1 8 , 3 1 6 2, 9 8 4 , 0 2 3 3, 2 3 7 , 9 5 5 3, 4 4 7 , 5 8 4 3, 4 8 2 , 0 6 0 Sa l e s & U s e T a x 8, 2 0 2 , 6 7 8 7, 5 0 1 , 1 7 5 9, 1 7 1 , 3 7 3 7, 6 8 1 , 5 4 6 7, 7 4 4 , 2 0 8 Fr a n c h i s e F e e s 2, 2 1 5 , 4 3 0 2, 2 5 8 , 8 9 2 2, 3 6 6 , 9 0 8 2, 3 1 7 , 3 9 0 2, 3 8 6 , 9 1 0 Tr a n s i e n t O c c u p a n c y T a x 1, 8 9 6 , 7 2 1 1, 9 4 3 , 1 6 6 2, 3 2 2 , 9 1 0 2, 2 5 0 , 0 0 0 2, 2 7 2 , 5 0 0 Ot h e r T a x e s 2, 1 1 9 , 2 6 1 1, 5 9 2 , 4 2 7 1, 8 1 0 , 8 2 8 1, 7 6 5 , 2 2 0 1, 7 6 5 , 2 2 0 Li c e n s e s & P e r m i t s 4, 9 8 7 , 6 5 8 4, 2 0 5 , 0 1 7 3, 7 2 7 , 9 5 1 3, 7 6 2 , 0 9 5 4, 3 7 8 , 4 5 6 In t e r g o v e r n m e n t a l 3, 0 2 4 , 0 1 1 2, 0 5 9 , 1 5 0 1, 7 1 9 , 9 6 2 1, 8 3 1 , 2 6 1 3, 3 1 4 , 3 4 3 To w n S e r v i c e s 4, 1 8 9 , 9 5 8 3, 9 7 5 , 8 7 9 3, 7 4 8 , 8 7 4 3, 8 7 8 , 4 8 2 4, 9 0 5 , 3 2 9 In t e r n a l S r v c R e i m b u r s e m e n t 4, 1 0 6 , 9 5 5 4, 5 2 1 , 6 1 0 4, 5 5 2 , 4 0 7 4, 9 0 6 , 8 6 6 3, 4 8 1 , 4 1 4 Fi n e s & F o r f e i t u r e s 84 2 , 4 7 0 85 8 , 9 2 9 91 7 , 1 0 6 68 3 , 5 4 7 63 1 , 4 0 0 In t e r e s t 43 0 , 4 1 5 70 5 , 5 6 9 25 1 , 1 1 5 32 1 , 5 0 3 31 7 , 6 9 6 Ot h e r S o u r c e s 3, 3 4 9 , 2 7 7 1, 9 8 5 , 5 9 9 3, 7 6 8 , 2 6 6 1, 6 2 4 , 2 3 5 1, 2 6 2 , 6 9 7 CI P P r o j R e i m b u r s e m e n t 5, 8 2 0 , 5 8 6 5, 7 9 3 , 4 8 0 5, 7 9 1 , 5 7 0 5, 7 4 9 , 4 4 8 5, 7 2 7 , 2 1 9 SC C R P T T F R e i m b u r s e m e n t - - - - - Tr a n s f e r s I n 9, 3 5 3 , 9 3 3 3, 0 7 0 , 5 8 5 7, 9 0 7 , 6 9 2 3, 7 2 5 , 0 6 3 3, 6 3 0 , 0 5 6 TO T A L R E V E N U E S 63 , 4 7 0 , 9 7 3 $ 54 , 2 3 4 , 9 4 8 $ 62 , 8 1 3 , 1 7 4 $ 55 , 9 0 1 , 5 9 2 $ 57 , 8 0 6 , 5 7 9 $ EX P E N D I T U R E S Sa l a r i e s & B e n e f i t s 21 , 9 7 2 , 3 9 8 $ 22 , 7 6 6 , 4 4 1 $ 25 , 3 4 4 , 8 6 5 $ 24 , 7 0 0 , 2 8 2 $ 27 , 3 4 7 , 0 9 3 $ Op e r a t i n g E x p e n d i t u r e s 11 , 9 5 9 , 6 1 5 12 , 2 8 4 , 2 6 4 12 , 9 1 1 , 9 2 2 13 , 5 4 9 , 4 0 5 17 , 7 1 9 , 8 1 7 Gr a n t s & A w a r d s 19 7 , 0 7 4 19 4 , 1 5 5 20 9 , 3 8 1 20 1 , 5 2 0 22 7 , 0 0 0 Fi x e d A s s e t s 35 5 , 7 9 9 95 8 , 9 9 1 40 2 , 8 0 6 96 2 , 4 7 0 1, 7 9 8 , 0 3 8 In t e r e s t 93 8 , 0 5 5 89 7 , 3 9 8 80 2 , 1 6 6 80 9 , 7 3 9 75 9 , 0 7 3 In t e r n a l S e r v i c e C h a r g e s 3, 3 3 0 , 7 9 2 3, 5 4 6 , 1 8 6 3, 5 5 8 , 5 0 3 3, 9 1 5 , 4 3 7 2, 4 9 0 , 0 2 7 Ca p i t a l P r o j e c t s 3, 6 1 8 , 6 0 7 2, 2 9 3 , 2 4 7 6, 8 6 3 , 3 7 4 5, 3 4 4 , 5 8 4 8, 5 9 8 , 1 4 3 Ca p i t a l A c q u i s i t i o n s 21 , 0 3 2 - - - - De b t S e r v i c e 4, 8 4 6 , 1 1 2 4, 8 6 9 , 7 9 6 4, 9 1 1 , 6 0 6 4, 9 3 4 , 4 7 8 4, 9 6 8 , 1 4 6 Tr a n s f e r s O u t 9, 3 5 3 , 9 3 2 3, 0 7 0 , 5 8 5 7, 9 0 7 , 6 9 2 3, 7 2 5 , 0 6 3 3, 6 3 0 , 0 5 6 TO T A L E X P E N D I T U R E S 56 , 5 9 3 , 4 1 6 $ 50 , 8 8 1 , 0 6 3 $ 62 , 9 1 2 , 3 1 5 $ 58 , 1 4 2 , 9 7 8 $ 67 , 5 3 7 , 3 9 3 $ Ne t I n c r e a s e ( D e c r e a s e ) 6, 8 7 7 , 5 5 7 3, 3 5 3 , 8 8 5 (9 9 , 1 4 1 ) (2 , 2 4 1 , 3 8 6 ) (9 , 7 3 0 , 8 1 4 ) Be g i n n i n g F u n d B a l a n c e 51 , 3 7 0 , 3 2 9 58 , 2 4 7 , 8 8 6 61 , 6 0 1 , 7 7 1 61 , 5 0 2 , 6 3 0 59 , 2 6 1 , 2 4 4 En d i n g F u n d B a l a n c e 58 , 2 4 7 , 8 8 6 $ 61 , 6 0 1 , 7 7 1 $ 61 , 5 0 2 , 6 3 0 $ 59 , 2 6 1 , 2 4 4 $ 49 , 5 3 0 , 4 3 0 $ No t e : E x p e n d i t u r e s a n d T r a n s f e r s O u t m a y e x c e e d R e v e n u e s d u e t o t h e i n c l u s i o n o f p l a n n e d a n d c a r r y - f o r w a r d ca p i t a l p r o j e c t s a n d p a y m e n t s f r o m G e n e r a l F u n d r e s e r v e s t o t h e T o w n P e n s i o n a n d O P E B T r u s t F u n d s . TO T A L A L L F U N D S C - 10 TOTAL TOWN REVENUES BY FUND (Includes Transfers In) 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Change Fund Fund Name Actuals Actuals Actuals Adopted Estimated Proposed from PY General Fund 111 General Fund 40,934,994$ 41,669,525$ 43,211,445$ 39,353,418$ 40,660,534$ 42,363,657$ 7.6% Special Revenue Funds 211 Housing Conservation Program 6,823 67 102,654 - - - 0.0% 212 Community Dev Block Grant 176,705 6,011 (6,011) - - - 0.0% 222 Urban Run-Off Source Fund 428,868 418,813 372,626 584,394 584,394 584,394 0.0% 231 Blackwell Assessment District 3,113 3,233 3,252 3,210 3,210 3,210 0.0% 232 Kennedy Assessment District 10,089 346 10,631 10,322 10,605 10,605 2.7% 233 Gemini Assessment District 3,936 4,850 4,801 4,647 4,750 4,750 2.2% 234 Santa Rosa Assessment District 4,305 5,000 5,074 4,800 5,000 5,000 4.2% 235 Vasona Assessment District 9,570 10,054 10,107 9,885 10,075 10,075 1.9% 236 Hillbrook Assessment District 5,887 6,041 6,074 5,997 6,040 6,040 0.7% Internal Service Funds 611 ABAG Self Insurance 985,397 492,341 497,401 553,953 509,112 376,187 -32.1% 612 Worker's Comp Self Insurance 1,004,574 963,155 1,026,355 969,547 1,010,448 878,386 -9.4% 621 Information Technology 1,089,254 1,114,384 1,110,361 1,180,879 1,187,125 334,478 -71.7% 622 Office Stores Fund 147,983 117,734 130,520 118,000 118,000 118,000 0.0% 631 Equipment Replacement 536,018 501,093 458,689 924,279 1,070,483 1,070,000 15.8% 632 Facilities Maintenance 570,003 571,670 577,675 586,654 586,654 376,655 -35.8% 633 Vehicle Maintenance 1,337,633 1,281,462 1,423,566 1,736,089 1,730,089 1,209,089 -30.4% Trust & Agency Funds 711 Library Trust 37,357 71,720 80,350 74,050 75,150 75,050 1.4% 712 Library History Project (2) 1,380 - - - - 0.0% 713 Ness Trust Bequest (851) 845 345 850 - - -100.0% 714 Betty McClendon Trust (309) 705 750 705 700 700 -0.7% 716 Barbara J Cassin Trust (1,125) 2,764 2,939 2,760 2,900 2,900 5.1% Capital Projects Funds 411 GFAR 9,946,794 1,282,823 8,913,877 3,824,333 3,292,677 4,150,562 8.5% 421 Grant Funded CIP Projects 870,911 171,485 3,093 250,000 78,770 574,046 129.6% 461 Storm Drain #1 218,895 51,538 74,183 48,850 8,837 49,010 0.3% 462 Storm Drain #2 37,833 72,598 69,142 50,000 50,000 50,240 0.5% 463 Storm Drain #3 5,172 46,944 6,813 2,390 39,716 1,860 -22.2% 471 Traffic Mitigation 90,612 609,962 163,126 30,000 89,478 354,874 1082.9% 472 Construction Tax-Undergrounding 126,561 67,150 47,615 44,280 44,280 44,310 0.1% 481 Gas Tax 884,525 682,594 611,472 882,457 869,143 1,324,204 50.1% Successor Agency to the Los Gatos RDA Funds 942 SA - Recognized Obligation Retirement 3,999,083 3,914,315 3,894,249 3,857,721 3,853,427 3,828,296 -0.8% TOTAL Fund Rev & Transfers In 63,470,973$ 54,234,948$ 62,813,174$ 55,114,470$ 55,901,597$ 57,806,578$ 4.9% C - 11 TOTAL TOWN REVENUES BY FUND 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 % of Actuals Actuals Actuals Adopted Estimated Proposed Total General Fund 40,934,994$ 41,669,525$ 43,211,445$ 39,353,418$ 40,660,534$ 42,363,657$ 73.3% Special Revenue Funds 649,296 454,415 509,208 623,255 624,074 624,074 1.1% Internal Service Funds 5,670,862 5,041,839 5,224,567 6,069,401 6,211,911 4,362,795 7.5% Trust & Agency Funds 35,435 169,760 84,384 78,365 78,750 78,650 0.1% Capital Project Funds 12,181,303 2,985,094 9,889,321 5,132,310 4,472,901 6,549,106 11.3% Successor Agency Funds 3,999,083 3,914,315 3,894,249 3,857,721 3,853,427 3,828,296 6.6% Total Rev & Transfers In 63,470,973$ 54,234,948$ 62,813,174$ 55,114,470$ 55,901,597$ 57,806,578$ 100.0% FY 2018/19 Revenues By Fund C - 12 TOTAL TOWN EXPENDITURES BY FUND (Includes Transfers Out) 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Change Fund Fund Name Actuals Actuals Actuals Adopted Estimated Proposed from PY General Fund 111 General Fund 42,010,746$ 36,129,459$ 43,764,091$ 42,870,117$ 41,718,910$ 47,522,071$ 10.9% Special Revenue Funds 211 Housing Conservation Program - - - - - - 0.0% 212 Community Dev Block Grant 176,705 - - - - - 0.0% 222 Urban Run-Off Source Fund 411,861 452,726 466,762 564,910 522,300 559,482 -1.0% 231 Blackwell Assessment District 1,987 1,650 1,555 9,852 3,307 10,907 10.7% 232 Kennedy Assessment District 3,348 8,400 8,631 38,634 16,320 31,506 -18.5% 233 Gemini Assessment District 6,767 1,406 1,406 11,701 2,544 12,544 7.2% 234 Santa Rosa Assessment District 3,107 2,955 2,955 13,255 9,472 19,472 46.9% 235 Vasona Assessment District 4,504 7,018 7,555 18,644 7,825 18,644 0.0% 236 Hillbrook Assessment District 6,238 2,969 3,525 17,960 4,757 19,757 10.0% Internal Service Funds 611 ABAG Self Insurance 474,795 656,053 1,015,409 816,952 495,161 641,361 -21.5% 612 Worker's Comp Self Insurance 1,066,415 1,264,688 1,337,371 1,258,466 1,156,345 1,218,202 -3.2% 621 Information Technology 901,293 1,059,092 1,747,482 1,424,950 1,326,582 1,211,775 -15.0% 622 Office Stores Fund 109,320 122,562 113,210 134,500 117,235 134,500 0.0% 631 Equipment Replacement 306,698 2,028,117 712,638 658,688 970,242 1,572,945 138.8% 632 Facilities Maintenance 987,999 484,662 805,178 583,491 491,810 376,655 -35.4% 633 Vehicle Maintenance 2,173,467 1,351,125 1,875,805 1,402,052 1,380,939 1,151,086 -17.9% Trust & Agency Funds 711 Library Trust 30,018 64,896 75,498 72,500 49,600 73,500 1.4% 712 Library History Project - - - - - - 0.0% 713 Ness Trust Bequest 15,978 131,694 - - 41,087 - 0.0% 714 Betty McClendon Trust 7,829 - - - 5,986 - 0.0% 716 Barbara J Cassin Trust 33,918 - - - - - 0.0% 721 Parking District #88 - 179,204 - - - - 0.0% Capital Projects Funds 411 GFAR 2,717,504 2,025,650 5,448,916 3,211,126 5,646,726 4,154,303 29.4% 421 Grant Funded CIP Projects 952,169 181,443 3,400 250,000 17,020 950,446 280.2% 461 Storm Drain #1 - - - - - 50,000 0.0% 462 Storm Drain #2 - 95,820 - - 18,700 50,000 0.0% 463 Storm Drain #3 - - 12,750 150,000 95,642 50,000 -66.7% 471 Traffic Mitigation 83,897 587,695 141,791 10,000 69,478 334,874 3248.7% 472 Construction Tax-Undergrounding - - - 42,000 - 2,218,000 5181.0% 481 Gas Tax 106,000 107,309 1,569,077 886,000 128,635 1,324,134 49.5% Successor Agency to the Los Gatos RDA Funds 942 SA- Trust Fund 4,000,853 3,934,470 3,797,310 3,856,383 3,846,355 3,831,229 TOTAL Fund Exp & Transfers Out 56,593,416$ 50,881,063$ 62,912,315$ 58,302,181$ 58,142,978$ 67,537,393$ 15.8% C - 13 TOTAL TOWN EXPENDITURES BY FUND 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 % Actuals Actuals Actuals Adopted Estimated Proposed of Total General Fund 42,010,746$ 36,129,459$ 43,764,091$ 42,870,117$ 41,718,910$ 47,522,071$ 70.4% Special Revenue Funds 614,517 477,124 492,389 674,956 566,525 672,312 1.0% Internal Service Funds 6,019,987 6,966,299 7,607,093 6,279,099 5,938,314 6,306,524 9.3% Trust & Agency Funds 87,743 375,794 75,498 72,500 96,673 73,500 0.1% Capital Project Funds 3,859,570 2,997,917 7,175,934 4,549,126 5,976,201 9,131,757 13.5% Successor Agency Funds 4,000,853 3,934,470 3,797,310 3,856,383 3,846,355 3,831,229 5.7% Total Exp & Transfers Out 56,593,416$ 50,881,063$ 62,912,315$ 58,302,181$ 58,142,978$ 67,537,393$ 100.0% FY 2018/19 Expenditures by Fund C - 14 TOTAL TOWN REVENUES BY CATEGORY FY 2018/19 Budgeted Revenues Total Budgeted Revenues (exclusive of Transfers In) have increased from the prior year, as the Town is expected to experience revenue growth in some of the key economically sensitive revenue categories of Property Tax, Transient Occupancy Tax, VLF Backfill, Business License Tax. Key revenue highlights include: Property Tax – Property Tax revenues have increased by 9.9% compared to the prior year budgeted amount as home sales continue to rise with the improving economy and low interest rates. Sales and Use Tax – While the Town only receives 1 cent of the 9 cents of sales tax paid per dollar of taxable sales generated in Town, Sales and Use Tax remains one of the General Fund’s largest revenue sources. The FY 2018/19 budget reflects $7.7 million in sales tax revenue, or a 2.9% decrease compared to the prior year budgeted amount. The negative impact is associated with the Netflix change in business model, increased on-line retail sales versus local brick and mortar shopping, and lower gasoline prices. Licenses and Permits – FY 2018/19 Licenses and Permits reflect a 17.8% increase as a result of increased permitting activity. Intergovernmental Revenues – Increases in intergovernmental revenues are due to changes in available grant funding. Transient Occupancy Tax– Transient Occupancy Tax (TOT) is expected to increase by 10.3% from FY 2017/18 budgeted amount of $2.1 million due to the continued rising trend in travel and tourism and the increased TOT (from 10% to 12%) rate that was approved by voters at the November 8, 2016 election. Other Sources – This revenue reflects lease reimbursement revenue received from the Successor Agency to the Los Gatos Redevelopment Agency for 2002 and 2010 Certificates of Participation (COPs) debt service payments for the bond issues. 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 % of Revenues Actuals Actuals Actuals Adopted Estimated Proposed Total Property Tax 10,113,303$ 10,779,448$ 11,518,257$ 11,383,073$ 11,957,352$ 12,507,071$ 21.6% VLF Backfill Property Tax 2,818,316 2,984,023 3,237,955 3,269,370 3,447,584 3,482,060 6.0% Sales & Use Tax 8,202,678 7,501,175 9,171,373 7,972,195 7,681,546 7,744,208 13.4% Franchise Fees 2,215,430 2,258,892 2,366,908 2,287,390 2,317,390 2,386,910 4.1% Transient Occupancy Tax 1,896,721 1,943,166 2,322,910 2,060,000 2,250,000 2,272,500 3.9% Miscellaneous Other Taxes 2,119,260 1,592,427 1,810,827 1,690,220 1,765,220 1,765,220 3.1% Licenses & Permits 4,987,658 4,205,016 3,727,951 3,716,081 3,762,095 4,378,456 7.6% Intergovernmental Revenues 3,024,011 2,059,150 1,719,961 2,578,257 1,831,261 3,314,343 5.7% Town Services 4,189,958 3,975,880 3,748,874 3,571,278 3,878,483 4,905,329 8.5% Internal Service Reimbursements 4,106,955 4,521,610 4,552,407 5,070,825 4,906,866 3,481,414 6.0% Fines & Forfeitures 842,470 858,929 917,106 695,400 683,547 631,400 1.1% Interest 430,414 705,570 251,116 323,499 321,503 317,696 0.5% Miscellaneous Other Sources 9,169,867 7,779,077 9,559,837 6,869,805 7,373,682 6,989,916 12.1% 54,117,041$ 51,164,363$ 54,905,482$ 51,487,393$ 52,176,529$ 54,176,523$ Plus Transfers In 9,353,932 3,070,585 7,907,692 3,627,063 3,725,063 3,630,056 6.3% Total Revenues & Other Sources 63,470,973$ 54,234,948$ 62,813,174$ 55,114,456$ 55,901,592$ 57,806,579$ 100% Total Revenues C - 15 TOTAL TOWN EXPENDITURES BY CATEGORY FY 2018/19 Budgeted Expenditures Total Budgeted Expenditures (exclusive of Transfers Out) include budgeted Capital Improvements, which can vary significantly from year to year. Net of Capital Projects and the IRS Trust payment of $3.2 million, total expenditures reflect a 3.0 % increase for FY 2018/19 compared to the prior year adopted budget. Expenditures of note include: Salaries and Benefits – The FY 2018/19 budget reflects an increase in salaries and benefits attributed to increased CalPERS and medical benefits rates. Salary increases are not reflected in the proposed budget as labor negotiations with the Town’s unions are pending. Staffing modifications include eliminating certain vacant positions and reclassifying them to better align with service delivery within the existing budget, including the 0.25 FTE Library Specialist position in the Library Program. The 1.0 FTE IT Analyst position and the 0.125 FTE increase for the Deputy Town Attorney are permanent additions to the budget. Staff also proposes one-time temporary hours within Police Department and Community Development Department. Fixed Assets – Budgeted fixed asset costs stem primarily from scheduled vehicle and equipment replacements. The variance in expenditures from year to year does not impact current year charges to the Departments, only the actual cash out to replace the asset. Internal Service Charges – These expenditures represent the service program costs charged back to the operational programs for Liability Insurance, Office Equipment, Information Technology, Vehicle Maintenance, and Building Maintenance services. The FY 2018/19 budget reflects a decrease in the Internal Service Charges since all personnel that were previously funded in Internal Service Fund Programs are programmed starting in FY 2018/19 in the General Fund, increasing total General Fund salaries and benefits expenditures while decreasing the Internal Service Fund charges by the same amount. Debt Service – Debt service charges reflect the Redevelopment Agency’s two outstanding Certificates of Participation (2002 and 2010) through a leasing expenditure and reimbursement revenue which nets to zero for the Town, while Successor Agency (SA) to the Los Gatos Redevelopment Agency funds provide the actual debt payment for the bond issues. The SA reimburses the General Fund for the debt service payment. The 1992 COP for Parking Lot #4 was paid in full in early FY 2012/13. 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 % of Actuals Actuals Actuals Adopted Estimated Proposed Total Salaries and Benefits 21,972,399$ 22,766,441$ 25,344,865$ 27,005,920$ 24,700,282$ 27,347,094$ 40.5% Operating Expenditures 14,618,759 15,342,699 16,085,203 15,993,014 16,574,844 20,864,268 30.9% Grants 197,074 194,155 209,381 209,800 201,520 227,000 0.3% Fixed Assets 355,799 958,991 402,807 877,161 962,469 1,798,038 2.7% Interest 938,055 897,398 802,166 809,740 809,739 759,073 1.1% Internal Service Charges 3,330,792 3,546,185 3,558,503 3,988,278 3,915,437 2,490,028 3.7% Capital Projects 3,639,640 2,293,247 6,863,375 4,015,509 5,344,584 8,598,140 12.7% Successor Agency Pass Thru 1,196,966 786,362 673,323 670,694 804,040 673,696 1.0% Debt Services 990,000 1,025,000 1,065,000 1,105,000 1,105,000 1,150,000 1.7% 47,239,484$ 47,810,478$ 55,004,623$ 54,675,116$ 54,417,915$ 63,907,337$ Transfers Out 9,353,932 3,070,585 7,907,692 3,627,063 3,725,063 3,630,056 5.4% Total Uses of Funds 56,593,416$ 50,881,063$ 62,912,315$ 58,302,179$ 58,142,978$ 67,537,393$ 100% Total Expenditures Expenditures C - 16 GENERAL FUND REVENUES BY DEPARTMENT FY 2018/19 Departmental Revenues *The Town Manager’s Office, Human Resources, Finance, Clerk Administration, and Information Technology Programs are all accounted for within the Administrative Services Department. 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 % of Departments Actuals Actuals Actuals Adopted Estimated Proposed Total Town Council 19,736$ 119$ 2,634$ -$ 730$ -$ 0.0% Non-Departmental 26,064,223 25,815,403 30,660,035 27,255,552 27,734,736 28,371,332 71.1% Administrative Services*2,211,587 2,107,339 1,939,016 1,854,444 1,929,569 2,105,357 5.3% Community Development 5,038,975 4,359,149 3,743,832 3,366,471 4,016,817 5,066,010 12.7% Police Department 3,529,909 3,356,188 2,880,573 2,562,087 2,486,430 2,518,704 6.3% Parks & Public Works 1,773,515 1,579,102 1,666,480 1,782,789 1,975,017 1,789,845 4.5% Library Services 57,184 93,420 81,746 72,500 57,660 58,500 0.1% Total General Fund Revenues 38,695,129$ 37,310,720$ 40,974,316$ 36,893,843$ 38,200,959$ 39,909,748$ 100% Town Debt Payments 1,928,056$ 1,922,398$ 1,923,303$ 1,914,739$ 1,914,739$ 1,909,073$ Transfers In 311,810 2,436,405 313,825 544,836 544,836 544,836 Net Operating Revenues 40,934,995$ 41,669,523$ 43,211,444$ 39,353,418$ 40,660,534$ 42,363,657$ C - 17 GENERAL FUND EXPENDITURES BY DEPARTMENT FY 2018/19 Departmental Expenditures * The Town Manager’s Office, Human Resources, Finance, Clerk Administrator, and Information Technology Programs are all accounted for within the Administrative Services Department. 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 % of Departments Actuals Actuals Actuals Adopted Estimated Proposed Total Police Department 13,862,029$ 13,844,684$ 13,251,291$ 15,484,347$ 14,307,571$ 14,976,514$ 35.0% Parks & Public Works 5,690,355 6,226,196 6,597,745 7,117,324 6,822,150 7,626,360 17.8% Non-Departmental 3,287,385 3,839,489 4,945,745 3,992,490 5,069,742 7,015,300 16.4% Community Development 4,233,465 4,032,333 3,793,929 4,376,673 4,178,751 5,583,158 13.0% Administrative Services*2,884,889 2,883,289 2,825,082 3,562,823 3,215,023 4,290,959 10.0% Library Services 2,268,844 2,332,268 2,508,678 2,781,018 2,504,099 2,556,267 6.0% Town Council 208,491 171,530 193,584 205,092 195,869 223,036 0.5% Town Attorney 260,740 296,258 426,548 353,383 428,740 556,183 1.3% Total General Fund Exp 32,696,198$ 33,626,047$ 34,542,602$ 37,873,150$ 36,721,945$ 42,827,777$ 100% Town Debt Payments 1,928,056$ 1,922,398$ 1,923,303$ 1,914,739$ 1,914,739$ 1,909,073$ Transfers Out 7,386,491 581,014 7,298,187 3,082,227 3,082,227 2,785,220 Net Operating Expenditures 42,010,745$ 36,129,459$ 43,764,092$ 42,870,116$ 41,718,911$ 47,522,070$ C - 18 GENERAL FUND REVENUES BY CATEGORY FY 2018/19 General Fund revenues and fund transfers are estimated to increase by 7.6% from the FY 2017/18 adopted budget. The Town’s operations are funded through a variety of revenue sources as depicted above. Revenues were estimated by trend analysis and historical data as explained below: Sales Tax – While the Town only receives 1 cent of the 9 cents of sales tax paid per dollar of taxable sales generated in Town, Sales and Use Tax remains one of the General Fund’s largest revenue sources. The FY 2018/19 budget reflects $7.7 million in sales tax revenue, or a 2.9% decrease compared to the prior year budgeted amount. The negative impact is associated with the Netflix change in business model, increased on-line retail sales versus local brick and mortar shopping, and lower gasoline prices. Property Tax – Property Tax receipts in Los Gatos are expected to increase from the budgeted FY 2017/18 amount by 9.9% totaling $12.5 million, as homes sales continue to rise with the positive economy and low interest rates. Property Tax budget projections are based on valuations projected by the Santa Clara County Assessor’s Office, given increased home sales, coupled with anticipated adjustments in property tax distribution due to the dissolution of California redevelopment agencies. The Town receives 9.3 cents of each property tax dollar paid by property owners. The remaining 90.7 cents of each dollar is distributed to several other taxing jurisdictions, including local schools, community college districts, the County of Santa Clara, Santa Clara County Central Fire Protection District, and other special districts that serve the community. 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 % of Revenue Category Actuals Actuals Actuals Adopted Estimated Proposed Total Property Tax 10,113,287$ 10,779,434$ 11,518,257$ 11,383,073$ 11,957,352$ 12,507,071$ 29.5% VLF Backfill Property Tax 2,818,316 2,984,023 3,237,955 3,269,370 3,447,584 3,482,060 8.2% Sales & Use Tax 8,202,678 7,501,175 9,171,373 7,972,195 7,681,546 7,744,208 18.3% Franchise Fees 2,215,430 2,258,892 2,366,908 2,287,390 2,317,390 2,386,910 5.6% Transient Occupancy Tax 1,896,721 1,943,166 2,322,910 2,060,000 2,250,000 2,272,500 5.4% Other Taxes 1,809,620 1,475,425 1,726,128 1,582,000 1,657,000 1,657,000 3.9% Licenses & Permits 3,757,590 3,512,019 3,038,511 2,908,829 2,904,280 3,304,199 7.8% Intergovernmental 1,004,661 984,507 908,285 666,375 667,513 646,640 1.5% Town Services 3,698,091 3,489,216 3,284,295 3,123,207 3,388,131 4,457,258 10.5% Fines & Forfeitures 842,470 858,929 917,106 695,400 683,547 631,400 1.5% Interest 430,476 620,895 171,653 270,723 270,723 267,806 0.6% Other Sources 3,833,845 2,825,437 4,234,238 2,590,020 2,890,632 2,461,769 5.8% Total Revenues 40,623,185$ 39,233,118$ 42,897,619$ 38,808,582$ 40,115,698$ 41,818,821$ Transfers In:311,810$ 2,436,405$ 313,825$ 544,836$ 544,836$ 544,836$ 1.3% Total Revenues & Transfers In 40,934,995$ 41,669,523$ 43,211,444$ 39,353,418$ 40,660,534$ 42,363,657$ 100% C - 19 GENERAL FUND REVENUES BY CATEGORY Town Services – Charges for Town Services increased by 42.7% as the General Plan update and recent large scale development projects are in progress. Licenses & Permits – Licenses and Permits remained flat based on current building activities. Intergovernmental Revenues – Intergovernmental revenues reflect a 3.0% decrease since less grant revenue is anticipated to receive than submitted and approved for the prior fiscal year. Franchise Fees – Compared to the prior fiscal year, Franchise Fees, including cable television, electric utility and solid waste have increased by 4.4%. The increase is based on analysis of current year rends in fees collected and the improving local economy. Transient Occupancy Tax – Transient Occupancy Tax (TOT) is expected to increase by 10.3% from FY 2017/18 budgeted amount of $2.1 million due to the continued rising trend in travel and tourism and the increased TOT (from 10% to 12%) rate that was approved by voter at the November 8, 2016 election. Fines and Forfeitures – Fines and Forfeitures include library and traffic fines and administrative citations which are expected to decrease by 9.2%. Transfers In – Compared to the prior fiscal year, transfers in have remained the same as in prior year. Other Sources – Other sources reflects a 5% decrease compared to the prior fiscal year because of the reduction occurring in Town “pass Through” law enforcement grants. C - 20 GENERAL FUND EXPENDITURES BY CATEGORY The FY 2018/19 General Fund Operating Budget of $40,279,937 (net of transfers out, payment for the IRS Trust and the General Fund Update expenses) represents a 1.3% increase compared to the net FY 2017/18 adopted operating expenditures budget of $39,787,891. Salaries & Benefits – The delivery of Town services is highly dependent on labor which comprises 57.3% of budgeted General Fund expenditures for FY 2018/19. Salaries and benefits continue to be the largest portion of the Town costs and continue to rise. The FY 2018/19 budget reflects an increase in salaries and benefits attributed to increased CalPERS and medical benefits rates. In addition, all personnel that were previously funded in Internal Service Fund Programs are programmed starting in FY 2018/19 in the General Fund, increasing total General Fund salaries and benefits expenditures while decreasing the Internal Service Fund charges by the same amount. Salary increases are not reflected in the proposed budget as labor negotiations with the Town’s unions are pending. Operating Expenditures –The operating expenditures include $3.2 million payment to the IRS 115 Pension Trust and $1.3 million for the General Plan Update. The FY 2018/19 operating expenditures increased when compared to the FY 2017/18 adopted budget. Town-wide efforts continue to emphasize the importance of containing operating costs while maintaining core services; however, factors such escalating energy costs and general cost increases have offset many departmental reductions. Grants & Awards –The Town provides General Fund grants and awards to local nonprofit organizations for a variety of human, art, special events and educational services. FY 2018/19 grants and awards reflect 8.2% increase in grant funding from the prior year. Internal Service Charges – These expenditures represent the service program costs charged back to the operational programs for Liability Insurance, Office Equipment, Information Technology, Vehicle Maintenance, and Building Maintenance services. The FY 2018/19 budget reflects a decrease in the Internal Service Charges since all personnel that were previously funded in Internal Service Fund Programs are programmed starting in FY 2018/19 in the General Fund, increasing total General Fund salaries and benefits expenditures while decreasing the Internal Service Fund charges by the same amount. 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 % of Expenditure Category Actuals Actuals Actuals Adopted Estimated Proposed Total Salaries & Benefits 20,658,173$ 21,342,278$ 21,884,855$ 25,426,213$ 23,159,267$ 27,182,217$ 57.3% Operating Expenditures 8,440,136 8,137,858 8,896,209 8,257,825 9,474,857 12,932,896 27.2% Fixed Assets 75,442 411,820 - - - - 0.0% Grants & Awards 197,074 194,155 209,381 209,800 201,520 227,000 0.5% Debt Service 1,928,056 1,922,398 1,923,303 1,914,739 1,914,739 1,909,073 4.0% Internal Service Charges 3,325,373 3,539,936 3,552,157 3,979,314 3,886,301 2,485,664 5.1% Total Expenditures 34,624,254$ 35,548,445$ 36,465,905$ 39,787,891$ 38,636,684$ 44,736,850$ Transfers Out 7,386,491$ 581,014$ 7,298,187$ 3,082,227$ 3,082,227$ 2,785,220$ 5.9% Total Exp & Transfers Out 42,010,745$ 36,129,459$ 43,764,092$ 42,870,118$ 41,718,911$ 47,522,070$ 100.0% C - 21 Debt Service – The Town facilitates the Successor Agency (SA) to the Los Gatos Redevelopment Agency’s two Certificates of Participation (COPs) through a leasing expense and reimbursement revenue which nets to zero for the Town, while SA funds provide the actual debt payment for the bond issues. Transfers Out – The General Fund Transfers Out include $2,335,220 to the Capital Projects Fund and $450,000 to the Equipment Replacement Fund for FY 2018/19. GENERAL FUND TAX REVENUES CITIES OF SANTA CLARA COUNTY – TAX REVENUES PER CAPITA (LATEST DATA AVAILABLE AT THE TIME OF PUBLICATION) FY 2014/15 Actual Tax Revenue Amounts and Per Capita Source: Santa Clara County and Cities of Santa Clara County Cities Population Amount Per Capita Amount Per Capita Amount Per Capita Amount Per Capita Campbell 41,993 11,240,729$ 268$ 13,915,291$ 331$ 4,091,923$ 97$ 662,787$ 16$ Cupertino 60,550 15,067,000 249 18,288,000 302 4,510,000 74 1,600,000 26 Gilroy 52,413 11,248,288 215 15,858,911 303 1,501,837 29 622,760 12 Los Altos 30,036 17,479,883 582 2,942,764 98 2,450,487 82 453,201 15 Los Altos Hills 8,354 4,606,184 551 113,333 14 - - 223,369 27 LOS GATOS 30,505 10,113,287 332 8,202,678 269 1,896,721 62 1,779,407 58 * Milpitas 70,092 21,849,000 312 20,606,000 294 7,114,000 101 349,000 5 Monte Sereno 3,700 1,462,590 395 15,917 4 - - 38,000 10 Morgan Hill 41,779 9,833,512 235 8,467,396 203 2,062,260 49 183,857 4 Mountain View 77,914 35,176,621 451 19,773,384 254 6,559,072 84 257,706 3 Palo Alto 66,029 34,117,000 517 29,675,000 449 16,699,000 253 - - San Jose 1,016,000 247,258,000 243 180,407,000 178 36,980,000 36 47,431,000 47 Santa Clara 120,973 37,574,373 311 49,649,079 410 18,185,857 150 931,423 8 Saratoga 30,887 10,475,350 339 1,060,000 34 310,000 10 575,000 19 Sunnyvale 148,028 54,940,570 371 31,218,980 211 14,137,069 96 1,845,883 12 Average 119,950 34,829,492$ 290$ 26,679,582$ 222$ 7,766,548$ 65$ 3,796,893$ 32$ * Business License Tax includes one-time true up. Property Tax Sales Tax Occupancy Tax Business License Tax C - 22 GENERAL FUND TAX REVENUES BUDGET WITH 10 YEAR HISTORY $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Actuals 2008/09 Actuals 2009/10 Actuals 2010/11 Actuals 2011/12 Actuals 2012/13 Actuals 2013/14 Actuals 2014/15 Actuals 2015/16 Actuals 2016/17 Estimated 2017/18 Proposed 2018/19 Property Tax Sales Tax Occupancy Tax Business License Tax Sum of Key Change from Revenues Prior Year 2008/09 Actuals 7,057,258$ 8,487,000$ 966,638$ 1,139,107$ 17,650,003$ (7.8%) 2009/10 Actuals 7,465,871$ 8,317,217$ 923,783$ 1,122,000$ 17,828,871$ 1.0% 2010/11 Actuals 7,289,897$ 9,971,409$ 1,004,659$ 1,136,511$ 19,402,476$ 8.8% 2011/12 Actuals 7,532,073$ 9,889,100$ 1,174,485$ 1,077,320$ 18,196,717$ (6.2%) 2012/13 Actuals 9,477,043$ 8,757,428$ 1,295,887$ 1,151,579$ 20,681,937$ 13.7% 2013/14 Actuals 9,054,908$ 8,029,571$ 1,512,846$ 1,130,020$ 19,727,345$ (4.6%) 2014/15 Actuals 10,113,287$ 8,202,678$ 1,896,721$ 1,779,407$ 21,992,093$ 11.5% 2015/16 Actuals 10,779,434$ 7,501,175$ 1,943,166$ 1,465,546$ 21,689,321$ (1.4%) 2016/17 Actuals 11,518,257$ 9,171,373$ 2,322,910$ 1,720,980$ 24,733,520$ 14.0% 2017/18 Estimated 11,957,352$ 7,681,546$ 2,250,000$ 1,650,000$ 23,538,898$ (4.8%) 2018/19 Proposed 12,307,071$ 7,802,864$ 2,272,500$ 1,650,000$ 24,032,435$ 2.1% Property Tax Sales Tax Occupancy Tax Business License TaxFiscal Year C - 23 GENERAL FUND ESTIMATED FUND BALANCE ACTIVITY Fund Balance Activity includes: General Fund Undesignated Reserves reflect ongoing revenue, carryforward, transfer, and expenditure activities, the net effect of the change in Designated Reserves, and the use of Undesignated Reserves. • FY 2018/19 Budgeted revenue and expenditure appropriations, and transfers to and from the General Fund. • Authorized Carryovers reflect operating appropriations that were brought forward as a funding source. The actual carryover amount will be determined at FY 2017/18 year-end, with funding offset by undesignated reserves. • In FY 2011/12, Council adopted a General Fund Reserve Policy that maintains a minimum of 25% of General Fund expenditures equally divided between the Budget Stabilization Reserve and Catastrophic Reserve. • In FY 2011/12, Council adopted a General Fund Reserve Policy that maintains a minimum of 25% of General Fund expenditures equally divided between the Budget Stabilization Reserve and Catastrophic Reserve. • In FY 2015/16, Council established a General Fund Pension/Other Post Employment Benefits (OPEB) Reserve Account. In the same time Council revised the General Fund Reserve Policy to provide for a maximum of $300,000 in General Fund Year End Savings upon year close to be deposited in the CalPERS Reserve Account or used for lump sum pay down as authorized by Town Council. • Undesignated Fund Balance is year-end fund balance not previously identified for a specific purpose; therefore, it can be reprogrammed as appropriations or designated reserves by Council. Town policy designates all year-end fund balance to the Budget Stabilization, Catastrophic, Capital/Special Project, and Pension/OPEB Reserves eliminating undesignated fund balance. However, year-end fund balance will be distributed to the Capital Improvement/Special Projects and to the Pension/OPEB Reserves as the Catastrophic and Budget Stabilization Reserves are fully funded. Estimated Fund Balance Estimated July 1, 2018 Sources June 30, 2019 Balance (Uses)Balance Unreserved Fund Balances Undesignated Reserves -$ -$ -$ -$ -$ Available to be Appropriated 3,670,447 42,363,657 47,586,851 5,974,133 4,421,386 Reserved Fund Balances Reserve for Encumbrances - - - - - Reserve for Long Term Notes - - - - - Actuarial - - - - - Committed to: Budget Stabilization Reserve 4,969,847 - - 67,396 5,037,243 Catastrophic Reserves 4,969,847 - - 67,396 5,037,243 CalPERS/OPEB Reserve 3,188,913 - - (3,188,913) - Almond Grove Reserve - - - - Assigned to:- Open Space Reserve 562,000 - - 562,000 Sustainability 140,553 - - 140,553 Strategy Reserve 263,882 - - (134,792) 129,090 Capital / Special Projects 7,881,738 - - (2,785,220) 5,096,518 Authorized Carryforwards 34,852 - - - 34,852 Compensated Absences 350,329 350,329 26,032,408$ 42,363,657$ 47,586,851$ -$ 20,809,214$ Expenditures and Transfers OutUse of / Addition to GF Reserves: Total Use of and Addition To Reserves Revenues & Transfers In C - 24 SCHEDULE OF INTERFUND TRANSFERS FISCAL YEAR 2017/18 & 2018/19 Estimated Proposed Budget 2017/18 2017/18 2018/19 2018/19 Fund Description Transfers In Transfers Out Transfers In Transfers Out General Funds General Fund 544,836$ 3,082,227$ 544,836$ 2,785,220$ Special Revenue Funds Solid Waste Management - - - - HCD Housing Rehabilitation - - - - HCD-Community Dev Block Grant - - - - Urban Run-Off Program - - - - Landscape & Lighting Districts Blackwell District - 460 - 460 Kennedy Meadows District - 1,510 - 1,510 Gemini Court District - 610 - 610 Santa Rosa Heights District - 660 - 660 Vasona Heights District - 1,430 - 1,430 Hillbrook District - 250 - 250 Internal Service Funds Self Insurance Fund - - - - Worker's Comp Self Insurance - - - - Management Information Systems - - - 300,000 Office Stores Fund - - - - Equipment Fund 398,000 - 450,000 - Vehicle Maintenance Fund - - - - Facilities Maintenance Fund 300,000 - - - Trust & Agency Funds Barbara J. Cassin Trust - - - - History Project Trust Fund - - - - Library Trust Fund - - - - Capital Project Funds GFAR 2,482,227 515,616 2,635,220 417,616 Grant Funded CIP Projects - - - - Storm Drain #1 - - - - Storm Drain #2 - - - - Storm Drain #3 - - - - Traffic Mitigation - 10,000 - 10,000 Construction Utility Underground - - - - Gas Tax - Street & Signal - 106,000 - 106,000 Successor Agency of the Los Gatos RDA Funds SA - Administration - - - - SA - Debt Service - - - - SA - Low / Moderate Housing - - - - SA - Recognized Obligation Retirement - - - - SA - General Fund - 6,300 - 6,300 Total Transfers 3,725,063$ 3,725,063$ 3,630,056$ 3,630,056$ C - 25 FUND BALANCE ACTIVITY SUMMARY FISCAL YEAR 2018/19 7/1/18 Plus Less 6/30/19 Estimated Revenues &Transfers Expenditures &Transfers Use of Estimated Fund Balance Carryforwards In Carryforwards Out Reserves Fund Balance GENERAL FUND Unreserved Fund Balances Undesignated Reserves Available to be Appropriated 3,670,447$ 41,818,821$ 544,836$ 44,736,851$ 2,785,220$ 5,974,133$ 4,486,166$ Reserved Fund Balances Committed to: Budget Stabilization Reserve 4,969,847 - - - - 67,396 5,037,243 Catastrophic Reserves 4,969,847 - - - - 67,396 5,037,243 Pension/OPEB Reserve 3,188,913 - - - - (3,188,913) - Almond Grove Reserve - - - - - - - Assigned to:- - - - - Open Space Reserve 562,000 - - - - - 562,000 Sustainability 140,553 - - - - - 140,553 Strategy Reserve 263,882 - - - - (134,792) 129,090 Capital / Special Projects 7,881,738 - - - - (2,785,220) 5,096,518 Authorized Carryforwards 34,852 - - - - - 34,852 Compensated Absences 350,329 - - - - - 350,329 Total General Fund Reserves 26,032,408$ 41,818,821$ 544,836$ 44,736,851$ 2,785,220$ -$ 20,873,994$ SPECIAL REVENUE FUNDS Solid Waste Fund -$ -$ -$ -$ -$ -$ -$ Housing Conservation Program 177,240$ -$ -$ -$ -$ -$ 177,240$ Community Dev Block Grant (10,587) - - - - - (10,587) Urban Run-Off Source Fund 76,988 584,394 - 559,482 - - 101,900 Blackwell Assessment District 11,831 3,210 - 10,447 460 - 4,134 Kennedy Assessment District 36,382 10,605 - 29,996 1,510 - 15,481 Gemini Assessment District 25,993 4,750 - 11,934 610 - 18,199 Santa Rosa Assessment District 57,775 5,000 - 18,812 660 - 43,303 Vasona Assessment District 47,398 10,075 - 17,214 1,430 - 38,829 Hillbrook Assessment District 15,719 6,040 - 19,507 250 - 2,002 Total Special Revenue Funds Reserves 438,739$ 624,074$ -$ 667,392$ 4,920$ -$ 390,501$ Fiscal Year 2018/19 Proposed Budget General Fund Undesignated Reserves reflect ongoing revenue, carryforward, transfer, and expenditure activities, the net effect of the change in Designated Reserves, and the use of Undesignated Reserves. • FY 2018/19 Budgeted revenue and expenditure appropriations, and transfers to and from the General Fund. • Authirozed Carryovers reflect operating appropriations that were brought forward as a funding source. The actual carryover amount will be determined at FY 2017/18 year-end, with funding offset by undesignated reserves. • In FY 2011/12, Council adopted a General Fund Reserve Policy that maintains a minimum of 25% of General Fund expenditures equally divided between the Budget Stabilization Reserve and Catastrophic Reserve. • In FY 2015/16, Council established a General Fund Pension/Other Post Employment Benefits (OPEB) Reserve Account. In the same time Council revised the General Fund Reserve Policy to provide for a maximum of $300,000 in General Fund Year End Savings upon year close to be deposited in the Pension/OPEB Reserve Account and used as authorized by Town Council. • Undesignated Fund Balance is year-end fund balance not previously identified for a specific purpose; therefore, it can be reprogrammed as appropriations or designated reserves by Council. Town policy designates all year-end fund balance to the Budget Stabilization, Catashrophic, Capital/Special Project, and Pension/OPEB Reserves eliminating undesignated fund balance. However, year-end fund balance will be distributed to the Capital Improvement/Special Projects and to the Pension/OPEB Reserves as the Catastrophic and Budget Stabilization Reserves are fully funded or other Council authorized uses. C - 26 FUND BALANCE ACTIVITY SUMMARY FISCAL YEAR 2018/19 7/1/18 Plus Less 6/30/19 Estimated Revenues &Transfers Expenditures &Transfers Use of Estimated Fund Balance Carryforwards In Carryforwards Out Reserves Fund Balance INTERNAL SERVICE FUNDS ABAG Self Insurance 899,392$ 376,187$ -$ 641,361$ -$ -$ 634,218$ Worker's Comp Self Insurance 756,410 878,386 - 1,218,202 - - 416,594 Management Information Systems 2,111,874 334,478 - 911,775 300,000 - 1,234,577 Office Stores Fund 201,202 118,000 - 134,500 - - 184,702 Equipment Replacement 1,994,298 620,000 450,000 1,572,945 - - 1,491,353 Vehicle Maintenance 277,213 376,655 - 376,655 - - 277,213 Facilities Maintenance 311,278 1,209,089 - 1,151,086 - - 369,281 Total Internal Service Funds Reserves 6,551,667$ 3,912,795$ 450,000$ 6,006,524$ 300,000$ -$ 4,607,938$ TRUST & AGENCY Friends of the Library -$ -$ -$ -$ -$ -$ -$ Library Trust 76,547$ 75,050$ -$ 73,500$ -$ -$ 78,097$ Library History Project - - - - - - - Ness Trust Bequest - - - - - - - Betty McClendon Trust 84,126 700 - - - - 84,826 Barbara J Cassin Trust 353,361 2,900 - - - - 356,261 Parking District #88 - - - - - - - Total Trust & Agency Funds Reserves 514,034$ 78,650$ -$ 73,500$ -$ -$ 519,184$ CAPITAL PROJECTS FUNDS GFAR 14,439,505$ 1,515,342$ 2,635,220$ 3,736,687$ 417,616$ -$ 14,435,764$ GFAR - Designated for Parking 1,460,210 - - - - - 1,460,210 Grant Funded CIP Projects (318,503) 574,046 - 950,446 - - (694,903) Storm Drain #1 804,218 49,010 - 50,000 - - 803,228 Storm Drain #2 1,050,086 50,240 - 50,000 - - 1,050,326 Storm Drain #3 (64,651) 1,860 - 50,000 - - (112,791) Traffic Mitigation 248,541 354,874 - 324,874 10,000 - 268,541 Construction Tax-Undergrounding 2,973,396 44,310 - 2,218,000 - - 799,706 Gas Tax 1,434,016 1,324,204 - 1,218,134 106,000 - 1,434,086 Total Capital Projects Funds Reserves 22,026,818$ 3,913,886$ 2,635,220$ 8,598,141$ 533,616$ -$ 19,444,167$ Successor Agency of the Los Gatos RDA Funds SA- Trust Fund 3,697,582$ 3,828,296$ -$ 3,824,929$ 6,300$ -$ 3,694,649$ Total SA of the Los Gatos RDA Funds Reserves 3,697,582$ 3,828,296$ -$ 3,824,929$ 6,300$ -$ 3,694,649$ TOTAL RESERVES 59,261,248$ 54,176,522$ 3,630,056$ 63,907,337$ 3,630,056$ -$ 49,530,433$ Equipment Replacement Fund Balance is the accumulation of replacement funding-to-date for assets. Revenues are the pro-rated annual charges to departments for asset replacement, and expenditures reflect the cost of equipment up for replacement in this fiscal year. The Fund will continue to reallocate Fund Balance as a transfer to the General Fund for assets that have accumulated replacement costs and have been identified as no longer being part of the Replacement Schedule. Fiscal Year 2018/19 Proposed Budget GFAR, Grant Fund, Storm Drain Funds, and Gas Tax Fund Balances reflect the spending down of available funds in FY 2018/19 in line with the planned Capital Improvement Program. The GFAR and Grant Funds also include transfers-in to fund these planned projects. Traffic Mitigation Fund reflects a transfer out of $10,000 for estimated annual administration fees. Grant Funded Projects Fund Balance reflects appropriations for incoming revenues and prior year carryforwards, which will result in either positive or negative fund balance depending on timing of receipts and budget. All grant projects net to zero at completion. C - 27 FUND BALANCE RESERVES 5 YEAR COMPARATIVE BALANCES 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Actual Actual Actual Estimated Budgeted Fund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance GENERAL FUND Restricted Fund Balances Unreserved Fund Balances Undesignated Reserves Available to be Appropriated - - - 3,670,447 4,486,166 Committed to: Budget Stabilization Reserve 6,621,808 6,621,808 4,969,847 4,969,847 5,037,243 Catastrophic Reserves 4,178,192 4,637,406 4,969,847 4,969,847 5,037,243 Pension/OPEB Reserve - 300,000 3,388,913 3,188,913 - Almond Grove Reserve 8,459,973 1,801,318 - - Assigned to:- - Open Space Reserve 562,000 562,000 562,000 562,000 562,000 Sustainability 140,553 140,553 140,553 140,553 140,553 Strategic Planning Reserve - 2,600,000 2,600,000 263,882 129,090 Capital / Special Projects 9,511,527 4,222,405 8,273,124 7,881,738 5,096,518 Authorized Carryforwards 99,284 99,284 34,852 34,852 34,852 Post Retirement Medical 400,000 - - - - Compensated Absences - - 350,329 350,329 350,329 Productivity Contingency 100,000 - - - - Special Studies 490,000 - - - - Total General Fund Reserves*22,103,364$ 27,643,429$ 27,090,783$ **26,032,408$ 20,873,994$ SPECIAL REVENUE FUNDS Housing Conservation Program 74,520$ 74,586$ 177,240$ 177,240$ 177,240$ Community Dev Block Grant (10,587) (4,576) (10,587) (10,587) (10,587) Urban Run-Off Source Fund 142,943 109,030 14,894 76,988 101,900 Blackwell Assessment District 8,648 10,231 11,928 11,831 4,134 Kennedy Assessment District 48,151 40,097 42,097 36,382 15,481 Gemini Assessment District 16,948 20,392 23,787 25,993 18,199 Santa Rosa Assessment District 58,083 60,128 62,247 57,775 43,303 Vasona Assessment District 39,561 42,596 45,148 47,398 38,829 Hillbrook Assessment District 8,816 11,887 14,436 15,719 2,002 Total Special Revenue Funds Reserves 387,083$ 364,371$ 381,190$ 438,739$ 390,501$ INTERNAL SERVICE FUNDS ABAG Self Insurance 1,567,162$ 1,403,449$ 885,441$ 899,392$ 634,218 Worker's Comp Self Insurance 1,514,857 1,213,323 902,307 756,410 416,594 Management Information Systems 2,833,159 2,888,452 2,251,331 2,111,874 1,234,577 Office Stores Fund 187,956 183,127 200,437 201,202 184,702 Equipment Replacement 3,675,029 2,148,005 1,894,057 1,994,298 1,491,353 Vehicle Maintenance 322,865 409,872 182,369 277,213 277,213 Facilities Maintenance 484,030 414,367 (37,872) 311,278 369,281 Total Internal Service Funds Reserves 10,585,058$ 8,660,595$ 6,278,070$ 6,551,667$ 4,607,938$ * Year End Fund Balance represents General Fund 111 ** FY 2016/17 Year End Fund Balance represents General Fund 111 (excludes $2,089,841 Long Term Compensated Absences that is accounted at Fund 961). C - 28 FUND BALANCE RESERVES 5 YEAR COMPARATIVE BALANCES 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Actual Actual Actual Estimated Budgeted Fund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance TRUST & AGENCY Library Trust 39,320$ 46,145$ 50,997$ 76,547$ 78,097$ Library History Project (1,380) - - - - Ness Trust Bequest 171,591 40,743 41,087 - - Betty McClendon Trust 87,957 88,662 89,412 84,126 84,826 Barbara J Cassin Trust 344,758 347,522 350,461 353,361 356,261 Parking District #88 86,858 - - - - Total Trust & Agency Funds Reserves 729,104$ 523,072$ 531,957$ 514,034$ 519,184$ CAPITAL PROJECTS FUNDS GFAR 14,071,413$ 13,328,594$ 16,793,556$ 14,439,505$ 14,435,763 GFAR - Designated for Parking 1,460,210 1,460,210 1,460,210 1,460,210 1,460,210 Grant Funded CIP Projects (369,988) (379,946) (380,253) (318,503) (694,903) Storm Drain #1 669,660 721,198 795,381 804,218 803,228 Storm Drain #2 972,866 949,644 1,018,786 1,050,086 1,050,326 Storm Drain #3 (49,732) (2,788) (8,725) (64,651) (112,791) Traffic Mitigation 184,941 207,206 228,541 248,541 268,541 Construction Tax-Undergrounding 2,814,352 2,881,501 2,929,116 2,973,396 799,706 Gas Tax 1,075,828 1,651,113 693,508 1,434,016 1,434,086 Total Capital Projects Funds Reserves 20,829,550$ 20,816,732$ 23,530,120$ 22,026,818$ 19,444,166$ SUCCESSOR AGENCY TO THE LOS GATOS RDA SA - Trust Fund ( Budgetary Fund Balance)3,613,727$ 3,593,572$ 3,690,510$ 3,697,582$ 3,694,649$ Total Successor Agency Funds Reserves 3,613,727$ 3,593,572$ 3,690,510$ 3,697,582$ 3,694,649$ TOTAL RESERVES 58,247,886$ 61,601,771$ 61,502,630$ 59,261,248$ 49,530,432$ C - 29 DEPARTMENT REVENUES BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adopted Estimated Proposed Town Offices 1101 Town Council -$ -$ -$ -$ -$ -$ 1301 Town Attorney 19,736 119 2,634 - 730 - 1302 ABAG - Self Insurance Fund 485,397 492,341 497,401 553,953 509,112 376,187 Total Town Offices 505,133$ 492,460$ 500,035$ 553,953$ 509,842$ 376,187$ Administrative Services Department 1201 Non-Departmental 27,992,277$ 27,772,802$ 32,681,146$ 29,485,907$ 29,965,091$ 30,596,021$ 2101 Town Manager Administration 1,179 13,547 7,639 1,527 8,527 8,055 2102 Community Grants - - - - - - 2103 Housing Program 6,823 67 102,654 - - - 2104 HCD Housing Rehab 176,705 6,011 (6,011) - - - 2201 Human Resources - - 15,235 - - - 2202 Workers' Compensation Fund 1,004,574 963,155 1,026,355 969,547 1,010,448 878,386 2301 Finance & Administrative Services 2,210,409 2,086,597 1,893,142 1,845,723 1,921,042 1,917,806 2302 Office Stores Fund 147,983 117,734 130,520 118,000 118,000 118,000 2303 Parking Assessment District 365 92,346 - - - - 2401 Clerk Administation - - - - - - 2502 Information Technology Management - - - - - 169,300 2501 Information Technology Systems 1,089,254 1,114,383 1,110,362 1,180,879 1,187,125 334,478 2803 Smoking Restriction Implementation - - 19,998 - - - 2999 Pass Thru Accounts - 7,194 3,002 7,194 - 10,196 Total Administrative Services 32,629,569$ 32,173,836$ 36,984,042$ 33,608,777$ 34,210,233$ 34,032,242$ Community Development 3101 Administration -$ -$ -$ -$ -$ -$ 3201 Developmental Review 1,062,532 821,153 693,250 610,000 622,254 610,000 3202 Advanced Planning 262,328 211,700 149,224 116,000 113,057 1,361,000 3301 Inspection Services 2,477,969 2,244,922 2,112,756 1,978,000 2,090,000 2,447,000 3401 Code Compliance 2,800 10,300 5,225 3,100 4,400 3,100 3501 BMP Housing Program 170,455 360,877 195,941 148,871 562,606 134,410 3999 Pass Thru Accounts 1,062,892 710,196 587,435 510,500 624,500 510,500 Total Community Development 5,038,976$ 4,359,148$ 3,743,831$ 3,366,471$ 4,016,817$ 5,066,010$ Police Department 4101 Administration 46,415$ 33,528$ 6,778$ 22,000$ 14,170$ 21,500$ 4201 Records & Communication 46,526 9,993 8,880 9,800 10,172 11,172 4202 Personnel & Community Services 546,314 336,798 377,720 295,640 295,640 295,640 4301 Patrol 481,967 828,320 905,751 898,092 888,491 919,560 4302 Traffic 451,065 500,142 498,202 447,902 462,415 443,402 4303 Investigations 3,066 184,932 168,080 120,691 126,489 124,130 4304 Parking Program 825,449 824,936 872,394 676,066 676,066 626,066 4800 Grants Program - Police 10,307 77,239 15,196 53,781 11,451 39,119 4999 Pass Thru Accounts 1,118,802 560,300 27,573 38,115 1,536 38,115 Total Police Department 3,529,911$ 3,356,188$ 2,880,574$ 2,562,087$ 2,486,430$ 2,518,704$ C - 30 DEPARTMENT REVENUES BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adopted Estimated Proposed Parks & Public Works 5101 Administration 1,931$ 594$ 7,231$ 1,200$ -$ -$ 5201 Engineering Program Services - - 128,775 - - - 5202 Engineering Development Srvcs 952,138 776,907 696,327 691,260 673,918 698,260 5203 Non-Point Source Fund 328,868 368,813 372,626 584,394 584,394 584,394 5301 Park Services 323,259 298,408 250,936 279,014 280,754 280,270 5302 Environmental Services 159,309 165,753 158,961 160,156 160,156 160,156 5401 Street & Signals 187,654 198,969 219,798 195,543 198,043 195,543 5402 Equipment Replacement 504,952 501,093 458,689 624,279 672,483 620,000 5403 Vehicle Maintenance 570,003 571,670 577,675 586,654 586,654 376,655 5404 Facilities Maintenance 1,337,633 1,281,462 1,423,566 1,436,089 1,430,089 1,209,089 5405 Property Damage 24,029 67,785 26,856 - 206,530 - 5501 Lighting & Landscape Districts 36,901 29,524 39,940 38,861 39,680 39,680 5999 Pass Thru Accounts 125,195 70,686 79,790 140,000 140,000 140,000 8011 GFAR 1,712,434 700,029 1,320,008 1,342,092 810,436 1,515,342 8021 Grant Funded CIP Projects 694,207 171,485 3,093 250,000 78,770 574,046 8031 Storm Drain #1 218,896 51,538 74,183 48,850 8,837 49,010 8032 Storm Drain #2 37,833 72,598 69,142 50,000 50,000 50,240 8033 Storm Drain #3 5,172 46,944 6,813 2,390 39,716 1,860 8041 Traffic Mitigation 90,612 609,961 163,126 30,000 89,478 354,874 8042 Utility Undergrounding 126,562 67,150 47,615 44,280 44,280 44,310 8051 Gas Tax - Street & Signals 884,525 682,594 611,471 882,457 869,143 1,324,204 Total Parks & Public Works 8,322,113$ 6,733,963$ 6,736,621$ 7,387,519$ 6,963,361$ 8,217,933$ Library 7101 Administration 6,507$ 6,950$ 7,218$ -$ 160$ -$ 7201 Adult Services - 4,520 9,836 9,836 9,836 35,000 7202 Children's Services - - 14,066 14,066 14,066 - 7203 Acquisitons & Cataloging 5,271 5,596 3,559 5,500 2,500 - 7204 Circulation Services 45,407 41,354 47,067 43,098 31,098 23,500 7301 Library Trust 37,357 71,720 80,350 74,050 75,150 75,050 7302 Clelles Ness Bequest Trust (851) 845 345 850 - - 7303 Library History Project (2) - - - - - 7304 Betty McClendon Trust (309) 705 750 705 714 700 7305 Barbara J Cassin Trust (1,125) 2,764 2,939 2,760 2,900 2,900 Total Library 92,255$ 134,454$ 166,130$ 150,865$ 136,424$ 137,150$ Successor Agency to the Los Gatos RDA 9403 SA- Admin Services 106,517$ 42,854$ 22,073$ 21,462$ 18,668$ 10,000$ 9404 SA- Debt to 2002 COP 1,363,717 1,363,015 1,360,886 1,354,598 1,354,598 1,351,146 9405 SA-Debt to 2010 COP 2,507,849 2,508,446 2,511,290 2,481,661 2,480,161 2,467,150 9406 SA- Debt to 1992 COP 21,000 - - - - - Total SA to the Los Gatos RDA 3,999,083$ 3,914,315$ 3,894,249$ 3,857,721$ 3,853,427$ 3,828,296$ Transfers In 9,353,933 3,070,584 7,907,692 3,627,063 3,725,063 3,630,056 Carryforward of CIP Grant Revenue Total Revenues by Department:63,470,973$ 54,234,948$ 62,813,174$ 55,114,456$ 55,901,597$ 57,806,578$ C - 31 DEPARTMENTAL EXPENDITURES BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adopted Estimated Adopted Town Offices 1101 Town Council 208,491$ 171,530$ 193,584$ 205,092$ 195,869$ 223,036$ 1301 Town Attorney 260,740 296,258 426,548 353,383 - 428,740 556,183 1302 ABAG - Self Insurance Fund 474,795 656,053 1,015,409 816,952 495,161 641,361 Total Town Offices 944,026$ 1,123,841$ 1,635,541$ 1,375,427$ 1,119,770$ 1,420,580$ Administrative Services Department 1201 Non-Departmental 5,230,442$ 5,761,887$ 6,869,047$ 5,907,229$ -$ 6,984,481$ 8,924,373$ 2101 Town Manager Administration 1,059,703 950,977 825,373 1,132,302 - 1,067,697 1,119,982 2102 Community Grants 114,522 103,519 119,800 124,800 - 124,800 142,000 2201 Human Resources 484,291 559,612 552,914 683,958 - 628,288 699,694 2301 Finance & Administrative Services 1,057,993 992,764 1,002,075 1,279,607 - 1,056,522 1,291,818 2401 Clerk Administration 168,379 276,418 315,912 334,961 - 337,716 342,507 2502 Information Technology Manageme - - - - - - 684,763 2803 Tobacco Prevention Initiatitves - - 9,009 - - - - 2802 Obesity Grant - - - - - - - 2999 Pass Through - - - 7,194 - - 10,196 2202 Workers' Compensation Fund 1,066,415 1,264,689 1,337,371 1,258,466 - 1,156,345 1,218,202 2302 Office Stores Fund 109,320 122,562 113,210 134,500 - 117,235 134,500 2501 Information Technology Systems 901,293 1,059,091 1,747,482 1,424,950 - 1,326,582 911,775 2303 Parking Assessment District - - - - - - - Total Administrative Services 10,192,358$ 11,091,519$ 12,892,193$ 12,287,967$ 12,799,666$ 15,479,810$ Community Development 3101 Administration 125,087$ 144,484$ 221,508$ 445,953$ 226,697$ 268,908$ 3201 Developmental Review 1,146,692 1,107,301 1,135,513 1,424,150 1,294,526 1,412,409 3202 Advanced Planning 243,737 225,602 314,024 365,369 337,133 1,662,995 3301 Inspection Services 1,178,836 1,167,902 1,132,888 1,262,399 1,299,064 1,355,865 3401 Code Compliance 160,414 187,513 206,572 219,431 206,778 238,071 3501 BMP Housing Program 315,807 489,335 195,991 148,871 154,377 134,410 3999 Pass Thru Accounts 1,062,891 710,196 587,435 510,500 660,176 510,500 Total Community Development 4,233,464$ 4,032,333$ 3,793,931$ 4,376,673$ 4,178,751$ 5,583,158$ Police Department 4101 Administration 774,187$ 889,742$ 861,561$ 1,023,502$ 1,009,384$ 1,045,209$ 4201 Records & Communication 1,756,928 1,914,577 1,949,183 2,306,596 2,052,042 2,401,228 4202 Personnel & Community Services 362,987 701,737 596,274 771,826 638,529 780,682 4301 Patrol 6,256,175 6,115,836 5,827,002 6,913,430 6,596,600 6,616,271 4302 Traffic 816,227 719,561 932,169 977,570 995,460 921,515 4303 Investigations 2,107,270 2,208,996 2,342,031 2,672,945 2,274,386 2,445,825 4304 Parking Program 649,866 665,850 700,325 726,581 730,056 688,551 4800 Grants Program - Police 30 71,920 14,567 53,782 10,578 39,119 4999 Pass Thru Accounts 1,123,359 556,467 28,178 38,115 536 38,115 Total Police Department 13,847,029$ 13,844,686$ 13,251,290$ 15,484,347$ 14,307,571$ 14,976,515$ C - 32 DEPARTMENTAL EXPENDITURES BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adopted Estimated Adopted Parks & Public Works 5101 Administration 307,031$ 348,234$ 340,123$ 551,395$ 538,262$ 568,922$ 5201 Engineering Program Services 902,915 1,002,319 1,157,205 1,058,501 1,148,029 1,078,779 5202 Engineering Development Srvcs 640,975 670,247 699,677 808,134 716,973 751,983 5203 Non-Point Source Fund 411,860 452,727 466,761 564,910 522,300 559,481 5301 Park Services 1,496,032 1,677,669 1,738,961 1,832,817 1,727,941 1,641,559 5302 Environmental Services 280,035 378,396 299,259 391,421 340,865 366,432 5401 Street & Signals 1,920,447 2,015,412 2,173,657 2,310,057 2,137,035 2,452,910 5402 Equipment Replacement 290,633 539,430 416,957 658,688 970,242 1,572,945 5403 Vehicle Maintenance 487,999 484,662 805,179 583,491 491,810 376,655 5404 Facilities Maintenance 1,248,819 1,338,979 1,875,804 1,402,052 1,380,939 1,151,086 5405 Property Damage 17,726 63,203 109,072 25,000 73,045 25,000 5406 Vehicle Maintenance Management - - - - - 222,483 5407 Facilities Maintenance Managemen - - - - - 378,292 5501 Lighting & Landscape Districts 21,031 19,478 20,707 105,126 39,305 107,910 5999 Pass Thru Accounts 125,195 70,715 79,790 140,000 140,000 140,000 8011 GFAR 2,609,078 1,484,857 5,249,109 2,793,509 5,131,109 3,736,686 8021 Grant Funded CIP Projects 952,169 141,803 3,400 250,000 17,020 950,446 8031 Storm Drain #1 - - - - - 50,000 8032 Storm Drain #2 - 95,820 - - 18,700 50,000 8033 Storm Drain #3 - - 12,750 150,000 95,642 50,000 8041 Traffic Mitigation 78,393 575,548 138,694 - 59,478 324,874 8042 Utility Undergrounding - - - 42,000 - 2,218,000 8051 Gas Tax - Street & Signals - 1,309 1,463,077 780,000 22,635 1,218,134 Total Parks & Public Works 11,790,338$ 11,360,808$ 17,050,182$ 14,447,101$ 15,571,330$ 19,992,577$ Library 7101 Administration 328,008$ 396,063$ 426,637$ 499,211$ 443,224$ 447,127$ 7201 Adult Services 608,632 597,085 637,465 676,974 575,119 575,859 7202 Children's Services 458,744 468,379 513,667 576,672 541,077 590,772 7203 Acquisitons & Cataloging 155,622 117,444 121,183 124,410 123,851 - 7204 Circulation Services 717,837 753,296 809,726 903,751 820,828 942,510 7301 Library Trust 30,018 28,515 75,498 72,500 49,600 73,500 7302 Clelles Ness Bequest Trust 15,978 131,694 - - 41,087 - 7303 Library History Project - - - - - - 7304 Betty McClendon Trust 7,829 - - - 5,986 - 7305 Barbara J Cassin Trust 33,918 - - - - - Total Library 2,356,586$ 2,492,476$ 2,584,176$ 2,853,518$ 2,600,772$ 2,629,768$ Successor Agency to the Los Gatos RDA 9402 SA- Housing Trust Others -$ -$ -$ -$ -$ -$ 9403 SA- Admin Services 16,052 16,500 1,571 15,334 5,307 1,513 9404 SA- Debt to 2002 COP 1,354,570 1,359,456 1,094,785 1,354,563 1,355,438 1,352,856 9405 SA-Debt to 2010 COP 2,505,061 2,488,860 2,700,954 2,480,186 2,479,310 2,470,560 9406 SA- Debt to 1992 COP - - - - - - Total SA to the Los Gatos RDA 3,875,683$ 3,864,816$ 3,797,310$ 3,850,083$ 3,840,055$ 3,824,929$ Total Operating Expenditures 47,239,484$ 47,810,479$ 55,004,623$ 54,675,116$ 54,417,915$ 63,907,337$ Transfers Out 9,353,932 3,070,584 7,907,692 3,627,063 3,725,063 3,630,056 Total Expenditures by Department:56,593,416$ 50,881,063$ 62,912,315$ 58,302,179$ 58,142,978$ 67,537,393$ C - 33 IN-KIND DONATIONS FY 2018/19 SUMMARY The information below provides an estimated value of in-kind support the Town provides annually to local non-profit organizations, in addition to contribution of funds as described elsewhere in this budget, such as community grants. The in-kind support consists of Town facilities leased to these organizations at rates substantially below present market rates. Los Gatos Museum Association - The Town and Los Gatos Museum Association (LGMA), renamed NUMU, have entered into an agreement in which NUMU leases 11,604 square feet in the Town Hall. NUMU has occupied the new space since the beginning FY 2015/16. Los Gatos-Saratoga Recreation - Beginning January 2010, Los Gatos Saratoga (LGS) Recreation entered into a 20-year lease with the Town for the former Neighborhood Center, renamed the Adult Recreation Center. In exchange for providing and expanding senior services, the facility is leased at a below market rate. LGS Recreation also leases the Town-owned facility located at 123 E. Main Street, on a month to month basis. In addition to providing subsidized leases, the Town provides in-kind staffing support for the Holiday Tree Lighting and the Children’s Holiday Parade. Costs to provide maintenance and public safety services for the Holiday Tree Lighting are estimated to be $1,600; the Children’s Holiday Parade costs are estimated to be $26,000. These estimates only include expenses that occur at the event and do not include time dedicated to event planning and logistics. The estimated total of all in-kind expenses is $821,171. NUMU (LG Museums)Recreation Department Adult Recreation Center Location 110 E. Main St 123 E. Main St.208 E. Main St. 10-Year Lease 20-Year Lease Market Price Per Square Foot/Month*$2.5 *$3.0 **$3.0 ** Square Footage 11,604 6,479 12,000 Value of Rent/Year $348,120 $235,133 $435,498 Rent Paid/Year $0 $24,143 $201,037 Total value of Donation/Lease Term 348,120$ 210,990$ 234,461$ * "Market rate" is defined as a lease term and not subject to change. ** Market rate is based on the State of California Department of Industrial Relations, Division of Labor Statistics and Research's Comsumer Price Index, All Urban Consumers, All Items, SanFrancisco-Oakland - San Jose, California as identified in the lease term. C - 34 FEE RELATED PROJECT LISTS Under California law, cities and other local agencies may enact Development Impact Fees on proposed development which must be paid as a condition of development approval. Development Impact Fees (“DIFs”) were enacted under Assembly Bill 1600 by the California Legislature in 1987 and codified under California Government Code §66000 et. seq., also referred to as the Mitigation Fee Act (the Act or AB 1600). Development Impact Fees are not ongoing fees or taxes; they are one-time fees, paid at the time of construction. Impact fees are not special assessments, nor are they permitted to cover on-going operations and maintenance costs. By definition, “a fee is voluntary and must be reasonably related to the cost of the service provided by the local agency.” The fees are collected by local governmental agencies to pay for infrastructure or capital facilities needed to serve new development. Because impact fees are collected during the development approval process, the fees are typically paid by developers, builders, or other property owners who are seeking to develop property as a way of paying their “fair share” of needed facilities. The Town collects three Development Impact Fees that meet the reporting requirements of AB 1600: the Traffic Impact Mitigation Fee, Below-Market Priced Housing Program In-Lieu Fee, and the Construction Activity Impact Fee. The following tables provide potential project lists. Source Description Estimated Project Cost (2018 $) BMP Fee Eligible Cost BMP Extremely Low Income Housing Projects $ 1,100,000 $ 1,100,000 BMP Reacquisition of Distressed/Foreclosed Properties 700,000 700,000 BMP Hello Housing Program Services 70,000 70,000 $ 1,870,000 $ 1,870,000 Source Description Estimated Project Cost (2018$) Construction Impact Fee Eligible Cost CIP Street Repair and Resurfacing Projects (5 year-plan) $ 16,238,024 $ 16,238,024 $ 16,238,024 $ 16,238,024 CIP - Town of Los Gatos, Capital Improvement Program Below Market Price (BMP) Housing Program Potential Project List Note: BMP - Below Market Housing Program Construction Impact Activity Project List Note: Total Total C - 35 FEE RELATED PROJECT LISTS Source Description Estimated Project Cost (2014 $) Mitigation Impact Fee Eligible Cost GP/VTP 2035 Blossom Hill Rd and Union Ave Intersection Improvements $ 1,200,000 $ 1,080,000 GP/VTP 2035 Los Gatos - Almaden Rd Improvements 3,000,000 1,500,000 GP/VTP 2035 Los Gatos Blvd Widening - Samaritan Dr to Camino Del Sol - Road widening, new sidewalks and bike lanes 4,000,000 2,000,000 GP/VTP 2035 Union Ave Widening and Sidewalks - complete ped and bike routes 3,000,000 1,500,000 GP/VTP 2035 Wood Rd Gateway on Santa Cruz Ave - roundabout 1,200,000 600,000 GP/VTP 2035 Central Traffic Signal Control System 750,000 72,600 GP/VTP 2035 Hwy 9 Los Gatos Creek Trail connector - new path and bridge for ped/bike 1,000,000 500,000 GP/VTP 2035 Hwy 9/N. Santa Cruz Ave Intersection Improvements 1,400,000 1,260,000 CIP Roberts Road Improvements from bridge to University 600,000 300,000 CIP Pollard Road Widening from Knowles to York Avenue 2,500,000 1,250,000 CIP Sidewalks infill - Van Meter, Fischer and Blossom Hill Schools 1,000,000 500,000 CIP Winchester Blvd/Lark Avenue Intersection Improvements 850,000 765,000 CIP Westbound Lark to Hwy 17 northbound ramps - add two right-turn lanes 3,750,000 3,375,000 CIP Unfunded Deferred Street Maintenance (Annual PMS Survey) 10,500,000 1,016,400 GP Lark/Los Gatos Intersection Improvements - Add Third Left Turn Lanes for Eastbound and Northbound Approaches 1,200,000 1,080,000 GP Complete Street Improvements - Lark from Garden Hill to Los Gatos Blvd 2,100,000 1,050,000 GP Complete Street Improvements - SR 9 from University to Los Gatos Blvd 650,000 325,000 GP Complete Street Improvements - Blossom Hill Road from Old Blossom Hill Road to Regent Drive 3,000,000 1,500,000 GP Complete Street Improvements - Knowles from Pollard to Winchester 2,000,000 1,000,000 GP Complete Street Improvements - Winchester from Blossom Hill to Lark 1,500,000 750,000 GP Blossom Hill Road widening over Highway 17 2,000,000 1,000,000 GP Local Bikeway Improvements 750,000 375,000 $ 47,950,000 $ 22,799,000 Notes: Town of Los Gatos Traffic Mitigation Improvements Potential Project List VTP = Valley Transportation Plan, 2035 by Santa Clara Valley Transportation Authority. Town CIP = Town of Los Gatos, Capital Improvement Program and pending construction project list. Source: Town of Los Gatos. Total C - 36 SUMMARY OF POSITIONS DEPARTMENTAL STAFF BY FUND 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Proposed General Fund Town Council 0.85 0.50 0.50 0.50 0.50 Town Attorney*0.85 0.85 1.04 0.91 1.88 Administrative Services*15.98 16.33 16.28 16.19 20.53 Community Development 19.78 19.28 19.99 20.08 20.08 Police Department 59.00 58.00 58.00 59.00 59.00 Parks & Public Works*27.10 28.40 28.40 29.40 33.50 Library 10.80 11.00 12.25 12.25 12.50 Total General Fund Staff 134.35 134.35 136.45 138.33 147.98 Special Revenue Funds Parks & Public Works 1.00 1.00 1.00 1.00 1.00 Total Special Revenue Fund Staff 1.00 1.00 1.00 1.00 1.00 Internal Service Funds Town Attorney*0.65 0.65 0.71 0.71 - Administrative Services*3.90 3.90 3.70 3.95 - Parks & Public Works*3.90 4.10 4.10 4.10 - Total Internal Services Funds Staff 8.45 8.65 8.51 8.76 - Successor Agency to the Los Gatos RDA Administrative Services 1.00 1.00 1.00 0.01 0.01 Community Development 0.10 0.10 0.01 - - Total Redevelopment Agency Staff 1.10 1.10 1.01 0.01 0.01 Total Town FTEs 144.89 145.10 146.98 148.11 148.99 Full Time Equivalent (FTE) Administrative Services staffing numbers include the following programs: Town Manager's Office; Human Resources; Finance; Clerk Administration; Information Technology; and Workers Compensation. *Personnel previously budgeted in Internal Service Funds are budgeted in General Fund Programs beginning in FY 2018/19. C - 37 SUMMARY OF POSITIONS BUDGETED FTES BY DEPARTMENT Blue Bar Shading – Town Staff Purple Bar Shading – Hourly Employees FY 2018/19 Budgeted FTEs by Department (Includes Converted Hourly Employees) Administrative Services staffing numbers include the following six programs: Town Manager’s Office; Human Resources; Finance; Clerk Administration; Information Technology; Workers’ Compensation. Hourly employee positions result from seasonal, temporary, and part-time labor needs. - 10.00 20.00 30.00 40.00 50.00 60.00 70.00 Town Council Town Attorney Administrative Services Community Development Police Department Parks & Public Works Library Authorized/Hourly Emp Funded Staff Total Town Staff converted Budgeted Departments Positions to FTEs Positions Town Council 0.50 0.08 0.58 Town Attorney 1.88 - 1.88 Administrative Services 20.53 0.66 21.19 Community Development 20.08 0.81 20.89 Police Department 59.00 1.46 60.46 Parks & Public Works 34.50 2.72 37.22 Library 12.50 4.47 16.97 Total Positions 148.99 10.21 159.19 C - 38 SUMMARY OF POSITIONS FUNDED FTES BY DEPARTMENT Five Year Staffing Trend FTEs represent Town staff positions funded in annual budgets. Numbers do not include temporary hours or the filled or unfilled status of the positions. 2014/15 2015/16 2016/17 2017/18 2018/19 Departments Funded Funded Funded Funded Proposed Town Council 0.85 0.50 0.63 0.50 0.50 Town Attorney 1.50 1.50 1.63 1.63 1.88 Administrative Services 19.25 19.60 19.35 20.59 20.53 Community Development 19.50 19.00 19.63 19.63 20.08 Police Department 60.00 59.00 59.00 59.00 59.00 Parks & Public Works 32.00 33.50 33.50 34.50 34.50 Library 10.80 11.00 12.25 12.25 12.50 Total Budgeted FTEs 143.90 144.10 145.98 148.11 148.99 C - 39 SUMMARY OF PERSONNEL CHANGES FY 2018/19 he Town’s total budgeted personnel costs for FY 2018/19 increased to $27 million ($25.1 million in FY 2016/17) and accounts for 46.8% of the total Town’s expenditures. Rising health and pension rates have increased labor costs; however, reduction strategies including vacancy eliminations, structural reorganization, and realignments have helped to mitigate growing personnel expenditures. The following discussion describes some of the staffing expenditures, savings, and budget impacts. Employee Compensation Personnel costs represent salaries of full-time and part-time personnel (including vacation, holiday, and sick leave compensation) and benefits, including health coverage, life and disability insurance, and retirement contributions. For represented positions, annual salary increases and benefit adjustments are negotiated under each bargaining unit’s Memorandum of Understanding (MOUs). Salary increases and benefit adjustments for unrepresented positions are determined under the Council’s authority and are not subject to bargaining. Memorandums of Understanding (MOUs) The FY 2018/19 budget reflect current Town-wide negotiated salary changes. As noted below, negotiations are continuing in the fiscal year and this budget does not include any potential changes to salaries and/or benefits. The status of current labor actions are as follows: • In compliance with the California Public Employees’ Pension Reform Act (PEPRA), an additional pension tier was implemented for all non-sworn and management employees, changing the pension formula to 2% at 62 for employees hired after January 1, 2013 who were not previously in a public pension system. • For sworn employees, the pension formula under PEPRA changed to 2.7% at 57 for safety employees hired after January 1, 2013 who were not previously in a public pension. • The TEA and AFSCME labor agreements expire on June 30, 2018. Negotiations are currently underway. • The Police Officers’ Association (POA) MOU agreement expires on September 30, 2018. Negotiations are expected to start in Summer 2018. Benefits The Town contracts for medical coverage through CalPERS and rates are adjusted each January for the calendar year. During 2014 Kaiser, which serves as the Town’s benchmark plan, surpassed the actuarial estimates and increased its annual rates by 11% over the prior year. In 2015 Kaiser rates decreased, reducing benefit costs to the Town; however, in 2018 Kaiser rates increased 4.5% from the prior year. As evidenced by this fluctuation, this is an area of continuing concern and volatility. Dental, vision and life insurance rates are expected to remain relatively stable. Conversely, short and long-term disability insurance costs are increasing significantly due to changes in the market and an increase in claims. Efforts are underway to identify measures to control and/or reduce costs. It is important to note that changes in health coverage are generally subject to negotiations with affected employee groups. Pension Plan In FY 2012/13, a three-tier pension plan was implemented for non-sworn, changing the pension formula from 2.5% at 55 to 2% at 60 for new hires after September 15, 2012 or 2% at 62 for “new” employees hired after January 1, 2013 who have not previously worked in a public pensions system. Similarly, in FY 2012/13 the State implemented a new tier for safety employees, changing the pension formula for “new” employees from 3% at 50 to 2.7% at 57, effective January 1, 2013. While this does not provide immediate cost savings, it is anticipated to reduce future salary and benefit expenditures in the next 10 to 15 years. Pension reform continues to be an important topic in regard to cost-containment and staff is monitoring a number of state-wide initiatives that may impact future pension costs. More recently, however, CalPERS has significantly increased employer contribution rates to cover rising retiree costs and CalPERS investment losses sustained in the down economy. In FY 2014/15, the Town’s miscellaneous employee rate was projected to increase to 23.45% and the safety rate was projected to increase to 43.87%. By Council authority in June 2014, the Town paid off its CalPERS side fund liability of $4.5M which substantially decreased PERS sworn rates in future years. As a result of this payoff, the FY 2014/15 Town’s miscellaneous employee rate was 22.38% and the safety rate was 29.56%, a sworn rate reduction of 14.31% from previously forecasted. In FY 2018/19 the Town’s miscellaneous employee rate is projected to increase to 30.87%; the safety rate is projected to increase to 46.09%; and the PEPRA safety rate is projected to be 13.96%. T C - 40 SUMMARY OF PERSONNEL CHANGES FY 2018/19 In December 2016 the CalPERS Board announced a plan to lower its discount rate from its current rate of 7.5%. The phase-in of the discount rate change approved by the Board effective beginning FY 2018/19 is as follows: Valuation Date Fiscal Year for Required Contribution Discount Rate June 30, 2016 FY 2018/19 7.375% June 30, 2017 FY 2019/20 7.25% June 30, 2018 FY 2020/21 7.00% The immediate effect of this change is the actuarial valuation report being prepared for June 30, 2016 by CalPERS which sets the employer contribution rate for FY 2018/19 at a the lower discount rate of 7.375%. This action will in turn lead to increased actuarial accrued liabilities because with lower expected returns there are lower projected assets to meet the expected pension obligations. Town staff had already anticipated increases in employer contributions in its Five Year Financial Plan, but the rates in years three through five of the plan increased beyond staff estimates due to the lowering of the discount rate. The CalPERS Board had previously adopted recommendations to modify both the smoothing and amortization policies and implement these changes going forward with an impact to employer rates which began in FY 2015/16. As a result of this change, the smoothing period changed from a 15-year rolling period to a five-year direct smoothing rate. The amortization period changed from a 30- year rolling period to a 30-year fixed rate. The cumulative effect of these changes will require the Town to pay significantly more into the system. Estimates indicated that these changes would result in the Town increasing from the FY 2017/18 rate of 39.36% to 68.76% in FY 2023/24 of pay rate for safety employees and from the FY 2017/18 rate of 28.90% to approximately 13.74% in FY 2023/24. Using official information issued by CalPERS, the following schedule reflects the Town’s actual CalPERS pension rate for FY 2018/19 and the expected rates for the following fiscal years based on the Town’s five-year forecast model which was updated using a CalPERS employer bulletin in January 2018 that provided a calculation method to estimate rate impacts of the discount rate change approved in December 2017. PERS Pension Plan FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 Safety Classic 40.85%29.56%32.36%36.18%39.36%46.09%52.40%58.06%62.79%66.58%68.76% Safety PEPRA 12.25%13.96%14.23%15.05%15.17%15.29%15.40% Miscellanious (Classic & PEPRA)21.90%22.38%25.43%26.96%28.90%30.87%34.45%37.43%40.14%42.42%43.74% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 Safety Classic Miscellanious (Classic & PEPRA)Safety PEPRA C - 41 SUMMARY OF PERSONNEL CHANGES FY 2018/19 Management Strategies A number of strategies have been implemented to mitigate rising personnel costs. These include adjusting user fees to recover the cost of staff time to provide Town services, focusing staff time on core services to maintain planned reductions in budgeted overtime, reducing hourly staffing use, and eliminating vacant, benefited positions. In light of limited available resources and uncertain economic trends in revenues sources such as Sales Tax, limited staffing changes have been included in the FY 2018/19 budget. Departments continuously evaluate staffing structures, anticipate succession needs, and modify staffing to improve efficiencies, align with service delivery demands, and meet other Town goals. In this budget, a couple of Departments have included cost neutral restructuring. Overtime Overtime expenditures continue to be assessed and adjusted when appropriate. While unpredictable or non-controllable events will impact the Town’s limited public safety and public works maintenance resources, continued adjustments to schedules and workload have been successful in reducing budgeted overtime. Although some non-critical Town services have experienced moderate service level reductions, scheduling restrictions have not seriously impacted routine operations. In FY 2010/11, the patrol staffing schedule was modified from a combination 10-hour and 12-hour schedule with five patrol teams to a straight 12- hour schedule with four patrol teams. This structure provides increased patrol staffing levels across the shifts; however, the Department is evaluating the impact of increased time off levels. Staffing Changes The FY 2018/19 Operating Budget has 159.19 budgeted FTEs, including temporary staff. This reflects a decrease of 1.23 FTEs compared to the prior year. The recommended FY 2018/19 staffing levels also reflect the following changes from the prior year’s adopted budget:  Administrative Services and Town Offices –The FY 2018/19 budget includes a deletion of 0.5 FTE one time Administrative Analyst in the Human Resources program. The budget also includes an increase of 0.125 FTE to the Deputy Town Attorney position to assist with the workload in the Town Attorney’s Office. In addition, the budget reflects the addition of a newly created IT Analyst position to provide critical support to the burgeoning technology infrastructure necessary to support modern governance throughout out the Town.  Police –A recent retirement at the Lieutenant rank and senior leadership transition in the Police Department during FY 2017/18 allowed an opportunity to reevaluate the Department’s organizational effectiveness. As a result of these assessments, the Police Department’s FY 2018/19 budget includes the elimination of the Lieutenant rank (2.0 FTE positions). Defunding the Lieutenant rank position allows the Department to return to the two Captain organizational model. The command re-structure also provides for the addition of an Administrative Sergeant position (6.0 FTE Sergeants to 7.0 FTE Sergeants) ensuring an equitable distribution of the Lieutenant’s responsibilities. In addition, the FY 2018/19 budget reflects a reclassification of 1.00 FTE from Administrative Analyst to Senior Administrative Analyst.  Community Development Department (CDD) – The FY 2018/19 budget reflects a reclassification of 1.00 FTE from Building Inspector to Senior Building Inspector. In addition, the nighttime Code Compliance Community Service Officer is funded completely in CDD with this budget.  Parks and Public Works (PPW) – The FY 18/19 budget includes multiple personnel adjustments that partially affect the Administration Program. The 0.5 FTE Office Assistant increased to 0.75 FTE overall, and was reclassified as an Administrative Assistant due to the actual duties of this position. In addition, the 1.0 FTE Administrative Assistant was reduced to 0.75 FTE to align the position with the allocated budget. Also, the Administrative Analyst was upgraded to a Senior Administrative Analyst to provide a career ladder for the Administrative job series in a management role and to reflect the complexity of the duties assigned to the position. The FY 18/19 budget reflects several personnel changes that partially affect the Engineering Program. The Town Engineer classification was upgraded to Assistant Parks and Public Works Director/Town Engineer as approved by the Town Council. Also, an Assistant Engineer is being added for increased capital program support. The Senior Public Works Inspector will be reallocated to reflect the actual job duties, and a vacant Public Works Inspector position will be deleted to offset the addition of an Assistant Engineer C - 42 SUMMARY OF PERSONNEL CHANGES FY 2018/19  Library - The FY 2018/19 Library budget includes some changes in personnel which overall represent no net change in FTE staffing from FY 17/18. These changes defund a Customer Service Supervisor position (1.00 FTE) and a Library Assistant position (1.00 FTE) allowing the creation of a Library Technician position (1.00 FTE) and Library Technology Specialist position (1.00 FTE) which better represent changing workloads and job duties of the organization. In addition, the budget modifies one already fully-benefited Customer Service Specialist position from a 0.75 FTE to a 1.00 FTE which is offset by reducing part-time staffing hours, discontinuing the need for one-time funding to cover on-call part-time staffing, and budgeting a significant portion of on-call part-time staffing to a lower paying classification that better aligns with actual job duties. In addition to direct personnel expenditures, Departments are charged for internal support services and employee insurance costs through payroll allocation charges. Appropriate charge-back rates are established based on either employee group historical costs or through a flat surcharge per employee. Annual reviews of all funds may result in adjustments to the rates as needed. Liability Insurance Self-Insurance Fund rates (liability claim insurance premiums) for FY 2018/19 remain relatively consistent with prior year rates. The Self-Insurance Fund Balance is declining as a result of adverse claims against the Town over the last several years. Staff will closely monitor the and recommend a budget strategy to be incorporated into the FY 2019/20 proposed budget. Workers’ Compensation The Workers’ Compensation fund balance is declining as a result of several injuries keeping employees out of work for extensive periods of time. The FY 2018/19 Workers’ Compensation rates remain at the prior year level. Staff will closely monitor the and recommend a budget strategy to be incorporated into the FY 2019/20 proposed budget. Information Technology The Information technology (IT) program is funded through charge-back to the Departments. The charge is based on the Department’s computer and printer equipment, established to fund the replacement cost of current technology equipment. C - 43 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Proposed Comments Town Attorney 1.00 1.00 1.00 1.00 1.00 Deputy Town Attorney 0.50 0.50 0.63 0.63 0.75 CY add 0.125 FTE TOTAL DEPARTMENT FTEs 1.50 1.50 1.63 1.63 1.75 Town Manager 1.00 1.00 1.00 1.00 1.00 Assistant Town Manager - - 1.00 1.00 1.00 Asst. Town Manager/CDD Director 0.50 0.50 - - - Assistant to Town Manager 1.00 1.00 1.00 - - Administrative Anaylst - - - 1.00 1.00 Executive Asst. to Town Mgr.1.00 1.00 1.00 1.00 1.00 Economic Vitality Manager - - - 0.75 0.75 Economic Vitality Coordinator 0.63 0.63 0.63 - - Communications Coordinator 1.00 1.00 - - nd - Office Assistant 1.63 0.63 - - - Events & Marketing Specialist - - - 0.50 0.50 TOTAL DEPARTMENT FTEs 6.76 5.76 4.63 5.25 5.25 Human Resources Director 1.00 1.00 1.00 1.00 1.00 Administrative Analyst 1.00 1.00 1.00 1.50 1.00 CY delete .50 FTE Human Resources Specialist 1.00 1.00 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 3.00 3.00 3.00 3.50 3.00 Finance Director 1.00 1.00 1.00 1.00 1.00 Finance & Budget Manager 1.00 1.00 1.00 1.00 1.00 Accountant/Finance Analyst 1.00 1.00 1.00 1.00 1.00 Payroll Specialist 1.00 1.00 1.00 1.00 1.00 Administrative Analyst - - 1.00 2.00 2.00 Administrative Technician 1.00 1.00 - - - Account Technician 1.35 1.35 1.35 0.35 0.35 TOTAL DEPARTMENT FTEs 6.35 6.35 6.35 6.35 6.35 Clerk Administrator 1.00 1.00 1.00 1.00 1.00 Office Assistant - 1.00 2.00 2.00 2.00 TOTAL DEPARTMENT FTEs 1.00 2.00 3.00 3.00 3.00 IT Manager 1.00 1.00 1.00 1.00 1.00 Network Administrator 1.00 1.00 1.00 1.00 1.00 IT Analyst - - - - 1.00 CY add 1.00 FTE IT Technician 1.00 1.00 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 3.00 3.00 3.00 3.00 4.00 TOWN MANAGER'S OFFICE HUMAN RESOURCES FINANCE SERVICES TOWN ATTORNEY'S OFFICE INFORMATION TECHNOLOGY SERVICES CLERK ADMINISTRATION C - 44 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Proposed Comments Asst. Town Manager/CDD Director 0.50 0.50 - - - Community Development Dir.- - 1.00 1.00 1.00 Planning Manager 1.00 1.00 1.00 1.00 1.00 Chief Building Official 1.00 1.00 1.00 1.00 1.00 Administrative Analyst 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Planner 2.00 2.00 2.00 2.00 2.00 Associate Planner 2.00 2.50 2.63 2.63 2.63 Assistant Planner 1.00 1.00 1.00 1.00 1.00 Planning Technician 2.00 1.00 1.00 1.00 1.00 Senior Building Inspector - - - - 1.00 CY add 1.00 FTE Building Inspector 4.00 4.00 4.00 4.00 3.00 CY delete 1.00 FTE Permit Technician 2.00 2.00 2.00 2.00 2.00 Code Compliance Officer 1.00 1.00 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 19.50 19.00 19.63 19.63 19.63 Chief of Police 1.00 1.00 1.00 1.00 1.00 Police Captain 2.00 1.00 1.00 1.00 2.00 CY add 1.00 FTE Police Lieutenant - 2.00 2.00 2.00 - CY delete 2.00 FTE Police Sergeant 6.00 6.00 6.00 6.00 7.00 CY add 1.00 FTE Police Corporal 5.00 4.00 4.00 4.00 4.00 Police Officer 26.00 25.00 25.00 25.00 25.00 Community Outreach Coordinator 1.00 1.00 1.00 1.00 1.00 Community Services Officer 2.00 2.00 2.00 1.00 1.00 Records & Evidence Manager 1.00 1.00 - - - Police Records Manager - - 1.00 1.00 1.00 Senior Administrative Analyst - - - - 1.00 CY add 1.00 FTE Administrative Analyst 1.00 1.00 1.00 1.00 - CY delete 1.00 FTE Executive Assistant to Chief 1.00 1.00 1.00 1.00 1.00 Communications Dispatcher Lead - 1.00 1.00 1.00 1.00 Communications Dispatcher 7.00 6.00 7.00 7.00 7.00 Parking Control Officer 2.00 2.00 2.00 2.00 2.00 Police Records Specialist 5.00 5.00 4.00 4.00 4.00 Human Resources Specialist - - - 1.00 1.00 TOTAL DEPARTMENT FTEs 60.00 59.00 59.00 59.00 59.00 COMMUNITY DEVELOPMENT POLICE C - 45 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Proposed Comments Parks & Public Works Director 1.00 1.00 1.00 1.00 1.00 Asst PPW Dir/Town Engineer - - - 1.00 CY add 1.00 FTE Town Engineer 1.00 1.00 1.00 1.00 - CY delete 1.00 FTE Superintendent 1.00 1.00 1.00 1.00 1.00 Facilities & Environmental Services Mgr 1.00 1.00 1.00 - - Transportation & Mobility Mgr - - - 1.00 1.00 Park & Public Works Operations Mgr - - - 2.00 2.00 Senior Civil Engineer - 1.00 1.00 1.00 1.00 Senior Administrative Analyst - - - - 1.00 CY add 1.00 FTE Administrative Analyst 1.00 1.00 1.00 1.00 - CY delete 1.00 FTE Executive Assistant 1.00 2.00 2.00 1.00 1.00 Administrative Assistant 2.00 2.00 2.00 2.00 2.50 CY add .50 FTE Office Assistant - 0.50 0.50 0.50 - CY delete .50 FTE Environmental Service Coordinator 1.00 - - - - Environmental Programs Specialist - - - 1.00 1.00 Associate Engineer 3.00 2.00 2.00 2.00 2.00 Assistant Engineer 1.00 1.00 1.00 1.00 2.00 CY add 1.00 FTE Construction Project Mgr - 1.00 1.00 1.00 1.00 Engineering Technician 1.00 1.00 1.00 1.00 1.00 Sr Public Works Inspector 1.00 1.00 1.00 1.00 1.00 Public Works Inspector 1.00 1.00 1.00 1.00 - CY delete 1.00 FTE Parks Service Officer 1.00 1.00 1.00 1.00 1.00 Town Arborist 1.00 1.00 1.00 1.00 1.00 Tree Trimmer/High Climber 1.00 1.00 1.00 1.00 1.00 Lead Parks & Maint. Worker 3.00 3.00 3.00 3.00 3.00 Sweeper Operator 1.00 - - - - Parks & Maintenance Worker 8.00 9.00 9.00 8.00 8.00 Equipment Mechanic 1.00 1.00 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 32.00 33.50 33.50 34.50 34.50 Library Director - - 1.00 1.00 1.00 Town Librarian 2.00 2.00 - - - Division Manager - - 2.00 2.00 2.00 Librarian 3.55 3.75 3.00 3.00 3.00 Library Technology Specialist 1.00 1.00 1.00 1.00 2.00 CY add 1.00 FTE Library Assistant 1.00 1.00 1.00 1.00 - CY delete 1.00 FTE Library Technician 0.75 0.75 0.75 0.75 1.75 CY add 1.00 FTE Customer Service Supervisor 1.00 1.00 1.00 1.00 - CY delete 1.00 FTE Customer Service Specialist 1.50 1.50 1.50 1.50 1.75 CY add .25 FTE Sr Library Page - - 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 10.80 11.00 12.25 12.25 12.50 TOTAL TOWN FTEs 143.90 144.10 145.98 148.10 148.99 PARKS and PUBLIC WORKS DEPARTMENT LIBRARY C - 46 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Proposed Town Council 5.00 5.00 5.00 5.00 5.00 TOTAL ELECTED OFFICIALS 5.00 5.00 5.00 5.00 5.00 2014/15 2015/16 2016/17 2017/18 2018/19 Temporary Hours by Department Funded Funded Funded Funded Proposed Town Council 175 175 175 175 175 Town Attorney's Office - - - - Administrative Services 1,370 1,476 2,196 2,196 1,376 Community Development 2,130 1,165 1,305 1,305 1,695 Police Department 3,977 4,504 3,422 5,502 3,035 Parks & Public Works 10,754 9,566 8,567 6,637 5,661 Library Department 10,237 10,237 9,546 9,796 9,294 Total Temporary Hours by Department 28,643 27,123 25,211 25,611 21,236 CONVERTED HOURLY EMPLOYEES 13.77 13.04 12.12 12.31 10.21 (1.00 FTE = 2080 hours) ELECTED OFFICIALS HOURLY EMPLOYEES