Staff Report
PREPARED BY: ROBERT SCHULTZ
Town Attorney
Reviewed by: Town Manager, Assistant Town Manager, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/18/2018
ITEM NO: 13
DATE: DECEMBER 13, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: ROBERT SCHULTZ, TOWN ATTORNEY
SUBJECT: ADOPT A RESOLUTION ESTABLISHING A SALES TAX OVERSIGHT
COMMITTEE
RECOMMENDATION:
Adopt a Resolution establishing a Sales Tax Oversight Committee in accordance with the
provisions of Section 2.60.140 of Ordinance 2274.
BACKGROUND:
Los Gatos voters approved Measure G at the November 6, 2018 election. The passage of Measure
G added Chapter 2.60 of the Los Gatos Town Code establishing a one eighth cent (0.125%)
transactions and use tax. The tax will remain in effect for 20 years.
DISCUSSION:
The approved ordinance requires the establishment of a Citizens’ Oversight Committee. The
ordinance language is as follows:
Sec. 2.60.140. Citizens’ oversight and annual audit.
A. There shall be a committee appointed by the Town Council to review and
report on the receipt of revenue and expenditure of funds from the tax
authorized by this chapter (“revenues and expenditures”). The number,
qualifications and duties of Committee members shall be established by
ordinance or resolution of the Town Council.
PAGE 2 OF 2
SUBJECT: ADOPT A RESOLUTION ESTABLISHING A SALES TAX OVERSIGHT COMMITTEE
DATE: DECEMBER 13, 2018
S:\COUNCIL REPORTS\2018\12-18-18\Sales Tax\Staff Report.docx
DISCUSSION (continued):
B. Beginning with the fiscal year that ends June 30, 2019, the Town’s
independent auditors shall, as part of their annual audit of the Town’s
financial statements, review the collection and expenditure of revenue from
the tax authorized by this chapter. The auditors’ review shall be a public
document. The committee shall annually review the auditors’ findings and
report in writing to the Town Council regarding the auditors’ findings
regarding the revenues and expenditures. The Committee’s statement shall
be transmitted to the Town Council for consideration at a public meeting.
As stated above, the Town Council determines the size, composition and duties of the Oversight
Committee. The typical size for a committee of this nature is from five to nine members with
the number varying depending on the size of the municipality, scope of the tax measure and
other factors. Based on the various constituencies and stakeholders in Los Gatos, a committee
size of seven members would provide for a reasonable and sufficient number of members.
The resolution (Attachment 1) establishes the “Los Gatos Sales Tax Oversight Committee.” It
also specifies the composition and duties of the Committee.
CONCLUSION:
Council should move for the adoption of the attached Resolution.
Attachments:
1. Draft Resolution establishing a Sales Tax Oversight Committee