Attachment 1CC A L I F O R N I A
T O W N O F L O S G A T O S
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
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TOWN OF LOS GATOS, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal ........................................................................................................................... 1
Principal Officers ................................................................................................................................ 6
Organization Chart ............................................................................................................................. 7
GFOA Award ..................................................................................................................................... 8
FINANCIAL SECTION:
Independent Auditor’s Report ........................................................................................................... 11
Management’s Discussion and Analysis ........................................................................................... 15
Basic Financial Statements:
Government-Wide Financial Statements: .................................................................................... 28
Statement of Net Position ..................................................................................................... 29
Statement of Activities ......................................................................................................... 30
Fund Financial Statements:
Governmental Funds: ........................................................................................................... 32
Balance Sheet ................................................................................................................... 33
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position .............................................................................................. 34
Statement of Revenues, Expenditures and Changes in Fund Balances ............................. 35
Reconciliation of Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of Activities ...................................... 36
Statement of Revenue, Expenditures and Changes in Fund Balances –
Budget and Actual (GAAP) General Fund .................................................................... 37
Proprietary Funds – Internal Service Funds: ....................................................................... 38
Statement of Net Position ................................................................................................. 39
Statement of Revenue, Expenses and Changes in Net Position ........................................ 40
Statement of Cash Flows .................................................................................................. 41
Fiduciary Funds: .................................................................................................................. 42
Statement of Fiduciary Net Position ................................................................................. 43
Statement of Changes in Fiduciary Net Position .............................................................. 44
Notes to the Basic Financial Statements ...................................................................................... 47
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Pension Plan Contributions .......................................................................................... 89
Schedule of Proportionate Share of Net Pension Liability – CalPERS Safety
Cost Sharing Plan ....................................................................................................................... 90
SUPPLEMENTARY INFORMATION:
Major Governmental Fund Schedules (other than the General Fund):
Schedule of Revenue, Expenditures and Changes in Fund Balance –
Budget and Actual (GAAP) Appropriated Reserves Fund ................................................... 95
TOWN OF LOS GATOS, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
TABLE OF CONTENTS
Nonmajor Governmental Funds:
Combining Balance Sheets .......................................................................................................... 96
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances ...................................................................................................................... 98
Budgeted Nonmajor Funds Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual (GAAP) ................................................... 100
Internal Service Funds:
Combining Statement of Fiduciary Net Position ......................................................................... 105
Combining Statement of Revenue, Expenses and Changes in Net Position ................................ 106
Combining Statement of Cash Flows .......................................................................................... 107
Private Purpose Trust Funds:
Combining Statement of Fiduciary Net Position ......................................................................... 109
Combining Statement of Changes in Fiduciary Net Position ...................................................... 110
Agency Funds:
Statement of Changes in Assets and Liabilities - Parking Improvement District #88 ................. 113
STATISTICAL SECTION .............................................................................................................. 116
Net Position by Component ................................................................................................................ 117
Changes in Net Position ..................................................................................................................... 118
Fund Balances, Governmental Funds ................................................................................................. 119
Changes in Fund Balances, Governmental Funds .............................................................................. 120
Assessed Value and Estimated Actual Value of Taxable Property ..................................................... 121
Direct and Overlapping Property Tax Rates ....................................................................................... 122
Principal Property Tax Payers ............................................................................................................ 123
Property Tax Levies and Collections .................................................................................................. 124
Ratios of Outstanding Debt by Type .................................................................................................. 125
Direct and Overlapping Governmental Activities Debt ...................................................................... 126
Legal Debt Margin .............................................................................................................................. 127
Demographic and Economic Statistics ............................................................................................... 128
Principal Employers ........................................................................................................................... 129
Full-time Equivalent Town Government Employees by Function/Program ...................................... 130
Operating Indicators by Function/Program ........................................................................................ 131
Capital Assets Statistics by Function/Program ................................................................................... 132
OTHER INDEPENDENT AUDITOR’S REPORTS:
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ................................................................................................. 135
Introductory Section
TOWN OF LOS GATOS
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Required Supplementary Information
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Schedule of Pension Plan Contributions
Schedule of Proportionate Share of Net Pension Liability – CalPERS Safety Cost Sharing
Plan
Page 88 of 138
2016 2015
Safety Plan
Contractually Required Contributions (Actuarially Determined)1,687,972$ 1,999,757$
Contributions in Relation to Actuarially Determined Contributions 1,687,972 1,999,757
Contribution Deficiency (Excess)--
Covered Employee Payroll 5,215,952$ 4,916,535$
Contributions as a Percentage of Covered Payroll 32.36%40.67%
Miscellaneous Plan
Contractually Required Contributions (Actuarially Determined)2,267,936$ 2,234,426$
Contributions in Relation to Actuarially Determined Contributions 2,267,936 2,234,426
Contribution Deficiency (Excess)--
Covered Employee Payroll 8,918,260$ 9,986,430$
Net Pension Liability as a Percentage of Covered Payroll 259.95%214.40%
Contributions as a Percentage of Covered Payroll 25.43% 22.37%
Notes to Schedule:
Valuation Date: June 30, 2014
Assumptions Used: Entry Age Method used fro Actuarial Cost Method
Level Percentage of Payroll (Closed) Used Amortization Method
3.8 Years Remaining Amortization Period
Inflation Assumed at 2.75%
Investment Rate of Returns set at 7.5%
CalPERS mortality table using 20 years of membership data for all funds
** Fiscal year 2015 was the second year of implementation, therefore only two years are shown.
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
TOWN OF LOS GATOS
SCHEDULE OF PENSION PLAN CONTRIBUTIONS
Page 89 of 138
2016 2015
Safety Plan
Town's Proportion of Net Pension Liability 0.21080% 0.28588%
Town's Proportionate Share of Net Pension Liability 14,468,906$ 17,788,690$
Town's Covered Employee Payroll 5,215,952$ 4,916,535$
Town's Proportionate Share of NPL as a % of Covered Employee Payroll 277.40% 361.81%
Plan's Fiduciary Net Position as a % of the Total Pension Liability 75.91% 75.66%
** Fiscal year 2015 was the second year of implementation, therefore only two years are shown.
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
TOWN OF LOS GATOS
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY
CALPERS SAFETY COST SHARING PLAN
Page 90 of 138
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Page 91 of 138
Supplementary Information
Page 92 of 138
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Page 93 of 138
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Schedule of Revenue, Expenditures and Changes in Fund Balances – Budget and Actual
(GAAP)
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Page 94 of 138
Variance
Original Final Positive
Budget Budget Actual (Negative)
REVENUES
Other taxes -$ -$ -$ -$
Licenses & permits 288,000 288,000 276,229 (11,771)
Intergovernmental 160,000 356,534 356,534 -
Charges for services 931,000 357,873 818,932 461,059
Interest - - 29,159 29,159
Other 50,000 - 623 623
Total Revenues 1,429,000 1,002,407 1,481,477 479,070
EXPENDITURES
Capital outlay 4,641,126 2,086,705 2,202,206 (115,501)
Total Expenditures 4,641,126 2,086,705 2,202,206 (115,501)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (3,212,126) (1,084,298) (720,729) 363,569
OTHER FINANCING SOURCES (USES)
Transfers in 670,000 770,654 582,800 (187,854)
Transfers (out) (209,808)(209,898) (592,580) (382,682)
Total Other Financing Sources (Uses) 460,192 560,756 (9,780)(570,536)
CHANGE IN FUND BALANCE (2,751,934)$ (523,542)$ (730,509) (206,967)$
BEGINNING FUND BALANCE 15,346,558
ENDING FUND BALANCE 14,616,049$
BUDGET AND ACTUAL (GAAP)
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
TOWN OF LOS GATOS
APPROPRIATED RESERVES FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Page 95 of 138
Total
Storm Construction Gas Capital
Drains Tax Tax Projects
Funds Fund Fund Funds
ASSETS
Cash & Investments 1,668,054$ 2,881,501$ 1,651,113$ 6,200,668$
Restricted cash & investments - - - -
Receivables:
Accounts - - - -
Intergovernmental Receivable - - - -
Total Assets 1,668,054$ 2,881,501$ 1,651,113$ 6,200,668$
LIABILITIES
Accounts Payable -$ -$ -$ -$
Accrued payroll and benefits - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total Liabilities - - - -
FUND BALANCE
Restricted for:
Repairs and Maintenance - - - -
Capital Projects 1,668,054 2,881,501 1,651,113 6,200,668
Assigned for:
Special Revenue Funds - - - -
Unassigned - - - -
Total Fund Balances 1,668,054 2,881,501 1,651,113 6,200,668
Total Liabilities and Fund Balances 1,668,054$ 2,881,501$ 1,651,113$ 6,200,668$
(Continued)
CAPITAL PROJECTS FUNDS
TOWN OF LOS GATOS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2016
Page 96 of 138
ASSETS
Cash & Investments
Restricted cash & investments
Receivables:
Accounts
Intergovernmental Receivable
Total Assets
LIABILITIES
Accounts Payable
Accrued payroll and benefits
Due to other funds
Unearned revenue
Total Liabilities
FUND BALANCE
Restricted for:
Repairs and Maintenance
Capital Projects
Assigned for:
Special Revenue Funds
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Total
Community Non-Point Total Nonmajor
Development Source Lighting and Special Revenue Governmental
Fund Maintenance Landscaping Funds Funds
-$ -$ 181,793$ 181,793$ 6,382,461$
94,412 - - 94,412 94,412
- 143,780 - 143,780 143,780
127,756 - 4,180 131,936 131,936
222,168$ 143,780$ 185,973$ 551,921$ 6,752,589$
-$ 234$ 640$ 874$ 874$
--- - -
- 34,516 - 34,516 34,516
152,158 - - 152,158 152,158
152,158 34,750 640 187,548 187,548
- - 185,333 185,333 185,333
- - - - 6,200,668
70,010 109,030 - 179,040 179,040
--- - -
70,010 109,030 185,333 364,373 6,565,041
222,168$ 143,780$ 185,973$ 551,921$ 6,752,589$
(Concluded)
COMBINING BALANCE SHEETS
JUNE 30, 2016
SPECIAL REVENUE FUNDS
TOWN OF LOS GATOS
NONMAJOR GOVERNMENTAL FUNDS
Page 97 of 138
Storm Construction Gas Total
Drain Tax Tax Capital Projects
Funds Fund Fund Funds
REVENUES
Property Taxes -$ -$-$ -$
Other Taxes - 44,453 - 44,453
License and permits 158,339 - - 158,339
Intergovernmental - - 671,258 671,258
Charges for Services - - - -
Fines and Forfeitures - - - -
Interest 12,741 22,697 11,336 46,774
Other - - - -
Total Revenues 171,080 67,150 682,594 920,824
EXPENDITURES
Current:
Parks and Public Works - - - -
Sanitation and Other - - - -
Capital Outlay 95,820 1 1,309 97,130
Total Expenditures 95,820 1 1,309 97,130
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 75,260 67,149 681,285 823,694
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers (out) - - (106,000) (106,000)
Total Other Financing Sources (Uses) - - (106,000) (106,000)
Changes in Fund Balances 75,260 67,149 575,285 717,694
Fund Balances - Beginning of year 1,592,794 2,814,352 1,075,828 5,482,974
Fund Balances - End of year 1,668,054$ 2,881,501$ 1,651,113$ 6,200,668$
(Continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
CAPITAL PROJECTS FUNDS
TOWN OF LOS GATOS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
Page 98 of 138
REVENUES
Property Taxes
Other Taxes
License and permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Interest
Other
Total Revenues
EXPENDITURES
Current:
Parks and Public Works
Sanitation and Other
Capital Outlay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out)
Total Other Financing Sources (Uses)
Changes in Fund Balances
Fund Balances - Beginning of year
Fund Balances - End of year
Community Non-Point Total
Development Source Lighting and Special Revenue
Fund Maintenance Landscaping Funds Total
-$ -$ 28,096$ 28,096$ 28,096$
- - - - 44,453
- 30,000 - 30,000 188,339
6,011 - - 6,011 677,269
- 338,813 - 338,813 338,813
- - 13 13 13
67 - 1,413 1,480 48,254
- - - - -
6,078 368,813 29,522 404,413 1,325,237
- - 19,477 19,477 19,477
- 452,726 - 452,726 452,726
- - - - 97,130
- 452,726 19,477 472,203 569,333
6,078 (83,913) 10,045 (67,790) 755,904
- 50,000 - 50,000 50,000
- - (4,920) (4,920) (110,920)
- 50,000 (4,920) 45,080 (60,920)
6,078 (33,913) 5,125 (22,710) 694,984
63,932 142,943 180,208 387,083 5,870,057
70,010$ 109,030$ 185,333$ 364,373$ 6,565,041$
(Concluded)
SPECIAL REVENUE FUNDS
AND CHANGES IN FUND BALANCES
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
TOWN OF LOS GATOS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
NONMAJOR GOVERNMENTAL FUNDS
Page 99 of 138
TOWN OF LOS GATOS
BUDGETED NONMAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (GAAP)
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes -$ -$ -$ -$ -$ -$
Other taxes --- ---
License and permits - - - - 30,000 30,000
Intergovernmental 176,705 6,011 (170,694) - - -
Charges for services - - - 416,684 338,813 (77,871)
Fines and forfeitures --- ---
Interest -6767---
Other 18,000 - (18,000) - - -
Total Revenues 194,705 6,078 (188,627) 416,684 368,813 (47,871)
EXPENDITURES
Parks and public works --- ---
Sanitation and other - - - 538,493 452,726 85,767
Capital outlay --- ---
Total Expenditures - - - 538,493 452,726 85,767
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 194,705 6,078 (188,627) (121,809) (83,913) 37,896
OTHER FINANCING SOURCES (USES)
Operating transfers in - - - 50,000 50,000 -
Operating transfers (out)(70,000) - 70,000 - - -
Total Other Financing Sources (Uses)(70,000) - 70,000 50,000 50,000 -
CHANGE IN FUND BALANCE 124,705$ 6,078 (118,627)$ (71,809)$ (33,913) 37,896$
BEGINNING FUND BALANCE 63,932 142,943
ENDING FUND BALANCE 70,010$ 109,030$
(Continued)
COMMUNITY DEVELOPMENT
BLOCK GRANT
NON-POINT
SOURCE MAINTENANCE
Page 100 of 138
REVENUES
Property taxes
Other taxes
License and permits
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Other
Total Revenues
EXPENDITURES
Parks and public works
Sanitation and other
Capital outlay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers (out)
Total Other Financing Sources (Uses)
CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
ENDING FUND BALANCE
TOWN OF LOS GATOS
BUDGETED NONMAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (GAAP)
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
27,485$ 28,096$ 611$ -$ -$ -$
------
- - - 95,000 158,339 63,339
------
------
-1313---
914 1,413 499 10,120 12,741 2,621
------
28,399 29,522 1,123 105,120 171,080 65,960
17,891 19,477 (1,586) - - -
------
- - - 95,820 95,820 -
17,891 19,477 (1,586) 95,820 95,820 -
10,508 10,045 (463) 9,300 75,260 65,960
------
(4,920) (4,920) - - - -
(4,920) (4,920) - - - -
5,588$ 5,125 (463)$ 9,300$ 75,260 65,960$
180,208 1,592,794
185,333$ 1,668,054$
(Continued)
STORM DRAIN FUNDSLIGHTING AND LANDSCAPING
Page 101 of 138
REVENUES
Property taxes
Other taxes
License and permits
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Other
Total Revenues
EXPENDITURES
Parks and public works
Sanitation and other
Capital outlay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers (out)
Total Other Financing Sources (Uses)
CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
ENDING FUND BALANCE
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
-$ -$ -$ -$ -$ -$
30,000 44,453 14,453 - - -
------
- - - 657,623 671,258 13,635
------
------
30,000 22,697 (7,303) 1,000 11,336 10,336
------
60,000 67,150 7,150 658,623 682,594 23,971
------
------
28,000 1 27,999 1,309 1,309 -
28,000 1 27,999 1,309 1,309 -
32,000 67,149 35,149 657,314 681,285 23,971
------
- - - (106,000) (106,000) -
- - - (106,000) (106,000) -
32,000$ 67,149 35,149$ 551,314$ 575,285 23,971$
2,814,352 1,075,828
2,881,501$ 1,651,113$
(Continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
TOWN OF LOS GATOS
BUDGETED NONMAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (GAAP)
CONSTRUCTION TAX GAS TAX
Page 102 of 138
REVENUES
Property taxes
Other taxes
License and permits
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Other
Total Revenues
EXPENDITURES
Parks and public works
Sanitation and other
Capital outlay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers (out)
Total Other Financing Sources (Uses)
CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
ENDING FUND BALANCE
Variance
Positive
Budget Actual (Negative)
27,485$ 28,096$ 611$
30,000 44,453 14,453
95,000 188,339 93,339
834,328 677,269 (157,059)
416,684 338,813 (77,871)
-1313
42,034 48,254 6,220
18,000 - (18,000)
1,463,531 1,325,237 (138,294)
17,891 19,477 (1,586)
538,493 452,726 85,767
125,129 97,130 27,999
681,513 569,333 112,180
782,018 755,904 (26,114)
50,000 50,000 -
(180,920) (110,920) 70,000
(130,920) (60,920) 70,000
651,098$ 694,984 43,886$
5,870,057
6,565,041$
(Concluded)
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
TOWN OF LOS GATOS
BUDGETED NONMAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (GAAP)
TOTALS
Page 103 of 138
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Page 104 of 138
Equipment Worker's Self Management Vehicle Building
Replacement Comp Insurance Stores Information Maintenance Maintenance Total
ASSETS
Cash & Investments 2,149,078$ 2,239,237$ 1,546,636$ 189,496$ 2,982,513$ 413,153$ 496,339$ 10,016,452$
Restricted Cash & Investments - 22,680 - - - - - 22,680
Receivables:
Accounts - - - - 5,571 - 21,082 26,653
Materials, Supplies and Deposits 3,509 - - 2,167 - 11,485 - 17,161
Equipment (Net)- - - - - - 2,471 2,471
Total Assets 2,152,587$ 2,261,917$ 1,546,636$ 191,663$ 2,988,084$ 424,638$ 519,892$ 10,085,417$
Deferred Outflows of Resources
Pension Plan Contributions -$ 18,747$ 26,726$ -$ 71,985$ 32,818$ 51,732$ 202,008$
LIABILITIES
Accounts Payable 4,227 12,223 18,851 8,531 87,297 8,104 95,951 235,184
Accrued Payroll and Benefits 267 2,304 4,864 - 12,335 6,661 9,574 36,005
Due to Other Governments 88 - - 4 - - - 92
Claims Payable - 1,034,066 119,472 - - - - 1,153,538
Net Pension Liabilities - 192,086 273,841 - 737,583 336,268 530,068 2,069,846
Total Liabilities 4,582$ 1,240,679$ 417,028$ 8,535$ 837,215$ 351,033$ 635,593$ 3,494,665$
Deferred Inflows of Resources
Differences Between Projected
and Actual Pension Earnings -$ 14,601$ 20,815$ -$ 56,064$ 25,560$ 40,291$ 157,331$
NET POSITION
Net investment in capital assets -$ -$ -$ -$ -$ -$ 2,471$ 2,471$
Restricted for:
workers compensation claims - 22,680 - - - - - 22,680
Unrestricted 2,148,005 1,002,704 1,135,519 183,128 2,166,790 80,863 (106,731) 6,610,278
Total Net Position 2,148,005$ 1,025,384$ 1,135,519$ 183,128$ 2,166,790$ 80,863$ (104,260)$ 6,635,429$
TOWN OF LOS GATOS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2016
Page 105 of 138
Equipment Worker's Self Management Vehicle Building
Replacement Comp Insurance Stores Information Maintenance Maintenance Total
OPERATING REVENUES
Charges for services 490,826$ 863,342$ 492,341$ 117,734$ 1,114,384$ 571,670$ 1,019,164$ 4,669,461$
Interest -6-----6
Use of money and property - - - - - - 191,526 191,526
Other local taxes - - - - - - 26,319 26,319
Other 10,267 99,807 - - - - 44,453 154,527
Total Operating Revenues 501,093 963,155 492,341 117,734 1,114,384 571,670 1,281,462 5,041,839
OPERATING EXPENSES
Salaries and benefits 8,931 78,199 147,641 - 395,114 209,068 332,129 1,171,082
Insurance expenses - 373,635 360,429 - - - - 734,064
Depreciation expenses - - - - - - 956 956
Services and supplies - 801,039 131,139 122,562 618,609 254,910 973,290 2,901,549
Total Operating Expenses 8,931 1,252,873 639,209 122,562 1,013,723 463,978 1,306,375 4,807,651
Operating Income (loss)492,162 (289,718) (146,868) (4,828) 100,661 107,692 (24,913) 234,188
Transfers (in)--------
Transfers (out)(2,019,186) - - - - - (12,146) (2,031,332)
Net Transfers (2,019,186) - - - - - (12,146) (2,031,332)
Change in Net Position (1,527,024) (289,718) (146,868) (4,828) 100,661 107,692 (37,059) (1,797,144)
BEGINNING NET POSITION 3,675,029 1,315,102 1,282,387 187,956 2,066,129 (26,829) (67,201) 8,432,573
ENDING NET POSITION 2,148,005$ 1,025,384$ 1,135,519$ 183,128$ 2,166,790$ 80,863$ (104,260)$ 6,635,429$
TOWN OF LOS GATOS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Page 106 of 138
Equipment Worker's Self Management Vehicle Building
Replacement Comp Insurance Stores Information Maintenance Maintenance Total
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers 501,093$ 963,154$ 494,669$ 117,734$ 1,110,456$ 571,670$ 1,278,905$5,037,681$
Payments to suppliers (69,498) (794,577) - (117,604) (575,553) (262,088) (985,270)(2,804,590)
Payments to employees (8,863) (90,297) (163,234) - (437,900) (227,906) (363,588)(1,291,788)
Claims paid - (208,793) (488,015) - - - -(696,808)
Net Cash Provided (Used) by
Operating Activities 422,732 (130,513) (156,580) 130 97,003 81,676 (69,953)244,495
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers In --------
Transfers Out (2,019,186) - - - - - (12,147)(2,031,333)
Net Cash Provided (Used) by
Noncapital Financing Activities (2,019,186) - - - - - (12,147)(2,031,333)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets (3,509) - - - - - -(3,509)
Net Cash Used by Capital and
Related Financing Activities (3,509) - - - - - -(3,509)
Net Increase(Decrease) in Cash and Investments (1,599,963) (130,513) (156,580) 130 97,003 81,676 (82,100)(1,790,347)
Cash and investments - beginning of year 3,749,041 2,392,430 1,703,216 189,366 2,885,510 331,477 578,439 11,829,479
Cash and investments - end of year 2,149,078$ 2,261,917$ 1,546,636$ 189,496$ 2,982,513$ 413,153$ 496,339$ 10,039,132$
Reconciliation of Operating Income to Cash
Flows from Operating Activities:
Operating Income 492,162$ (289,718)$ (146,868)$ (4,828)$ 100,661$ 107,692$ (24,913)$ 234,188$
Adjustments to reconcile operating income to
cash flows from operating activities:
Depreciation - - - - - - 956 956
Change in assets and liabilities:
Receivables, net - - 2,328 - (3,924) - (2,558)(4,154)
Other assets - - - 2,405 - 10,052 -12,457
Deferred outflows of resources - (2,440) (3,479) - (9,370) (4,272) (6,734)(26,295)
Net pension liabilities - 14,680 20,928 - 56,370 25,699 40,511 158,188
Deferred inflows of resources - (24,055) (34,293) - (92,368) (42,111) (66,381)(259,208)
Accounts payable (69,498)6,178 18,180 2,553 45,634 (15,357) (10,834) (23,144)
Accrued payroll and benefits 68 164,842 (13,376) - - (27) - 151,507
Cash Flows From Operating Activities 422,732$ (130,513)$ (156,580)$ 130$ 97,003$ 81,676$ (69,953)$ 244,495$
TOWN OF LOS GATOS
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Page 107 of 138
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Page 108 of 138
RDA
Successor
Library Agency Total
ASSETS
Cash and investments (Note 2) 525,614$ 1,630,309$ 2,155,923$
Restricted cash and investments (Note 2) - 1,963,660 1,963,660
Loans receivable (Note 3) - 552,097 552,097
Capital assets (Note 5):
Nondepreciable - 5,257,422 5,257,422
Depreciable, net of accumulated depreciation - 1,830,469 1,830,469
Total Assets 525,614$ 11,233,957$ 11,759,571$
LIABILITIES
Accounts payable 2,510$ 397$ 2,907$
Passthrough obligations - - -
Due to other governments 32 - 32
Interest payable - 367,000 367,000
Long-term debt (Note 6):
Due within one year - 1,065,000 1,065,000
Due in more than one year - 19,312,165 19,312,165
Total Liabilities 2,542$ 20,744,562$ 20,747,104$
NET POSITION
Held in trust 523,072$ (9,510,605)$ (8,987,533)$
Total Net Position 523,072$ (9,510,605)$ (8,987,533)$
TOWN OF LOS GATOS
PRIVATE PURPOSE TRUST FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2016
Page 109 of 138
RDA
Successor
Library Agency Total
ADDITIONS
Investment earnings 4,863$ 40,049$44,912$
Gifts, bequests and endowments 71,171 -71,171
Other 1,381 2,001,188 2,002,569
Total Additions 77,415 2,041,237 2,118,652
DEDUCTIONS
Program expenses - 20,020 20,020
Payments to other governments - 69,654 69,654
Interest and fiscal agency expenses of RDA - 883,301 883,301
Library services 196,590 -196,590
Depreciation expense - 101,692 101,692
Total Deductions 196,590 1,074,667 1,271,257
CHANGE IN NET POSITION (119,175) 966,570 847,395
NET POSITION - BEGINNING OF YEAR 642,247 (10,477,175)(9,834,928)
NET POSITION - END OF YEAR 523,072$ (9,510,605)$ (8,987,533)$
TOWN OF LOS GATOS
PRIVATE PURPOSE TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Page 110 of 138
This Page Intentionally Left Blank
Page 111 of 138
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Page 112 of 138
Balance Balance
June 30, 2015 Additions Deletions June 30, 2016
ASSETS
Cash and investments 179,204$-$ 179,204$ -$
Restricted cash and investments - - - -
Total Assets 179,204$-$ 179,204$ -$
LIABILITIES
Due to other governments 179,204$-$ 179,204$ -$
Total Liabilities 179,204$-$ 179,204$ -$
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
TOWN OF LOS GATOS
AGENCY FUND
PARKING IMPROVEMENT DISTRICT #88
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Page 113 of 138
Statistical Section
Page 114 of 138
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Page 115 of 138
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Page 116 of 138
Town of Los Gatos Schedule 1
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Net Investment Total
Year in Capital Assets
Restricted Unrestricted Net Position
2007 43,281,315 20,423,828 37,893,056 101,598,199
2008 48,581,378 18,459,776 42,884,826 109,925,980
2009 52,665,506 15,663,436 51,619,635 119,948,577
2010 50,129,550 26,723,994 47,191,225 124,044,769
2011 72,567,355 14,652,823 29,017,520 116,237,698
2012 90,333,451 5,167,236 37,192,210 132,692,897
2013 92,558,523 3,949,583 41,480,377 137,988,483
2014 93,251,117 4,485,246 44,393,265 142,129,628
2015 93,687,029 5,663,182 7,180,919 106,531,130
2016 93,383,855 6,386,014 12,744,637 112,514,506
(2) The decrease in Restricted Net Position from FY2010 to FY2011 was primarily due to the issuance of the $15.7
million Certificates of Participation in FY2010.
0
5,000,000
10,000,000
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55,000,000
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65,000,000
70,000,000
75,000,000
80,000,000
85,000,000
90,000,000
95,000,000
Net Investment in Capital Assets Restricted Unrestricted
Page 117 of 138
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Town of Los Gatos Schedule 5
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Utility
and Total
Fiscal Unsecured Percent Secured Percent Total Estimated Direct
Year Property Change Property Change Assessed Full Market Tax Rate
2007 194,195,209$ 4.02%6,840,335,733$ 9.27% 7,034,530,942$ 27,361,342,932$ 1.0460
2008 201,629,315 3.83%7,392,958,751 8.08% 7,594,588,066 29,571,835,004 1.0459
2009 216,402,089 7.33%7,949,991,620 7.53% 8,166,393,709 31,799,966,480 1.0449
2010 241,286,055 11.50%8,076,101,607 1.59% 8,317,387,662 32,304,406,428 1.0584
2011 217,353,236 -9.92%8,044,692,600 -0.39% 8,262,045,836 32,178,770,400 1.0555
2012 217,297,593 -0.03%8,152,459,157 1.34% 8,369,756,750 32,609,836,628 1.0499
2013 211,268,609 -2.77%8,465,420,032 3.84% 8,676,688,641 33,861,680,128 1.0508
2014 224,079,502 6.06%9,238,816,900 9.14% 9,462,896,402 36,955,267,600 1.0493
2015 227,331,042 1.45%9,767,782,505 5.73% 9,995,113,547 39,071,130,020 1.0544
2016 217,035,545 -4.53%10,417,804,357 6.65% 10,634,839,902 41,671,217,428 1.0533
Source: Santa Clara County Assessed Value Report
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mi
l
l
i
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s
Utility and Unsecured Property
Secured Property
Page 121 of 138
Town of Los Gatos Schedule 6
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
County
Retirement Levy Santa Clara School
Fiscal Basic County and County Valley Water District Bonds
Year Wide Levy Hospital Bond District and Loans Total
2007 1.0000 0.0388 0.0072 0.0941 1.1401
2008 1.0000 0.0388 0.0071 0.1032 1.1491
2009 1.0000 0.0388 0.0061 0.0970 1.1419
2010 1.0000 0.0510 0.0074 0.1021 1.1605
2011 1.0000 0.0483 0.0072 0.1449 1.2004
2012 1.0000 0.0435 0.0064 0.1393 1.1892
2013 1.0000 0.0439 0.0069 0.1523 1.2031
2014 1.0000 0.0423 0.0070 0.1417 1.1910
2015 1.0000 0.0479 0.0065 0.1442 1.1986
2016 1.0000 0.0476 0.0057 0.1381 1.1914
Source: Santa Clara County Book of Tax Rates
0.00
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Santa Clara Valey Water District County
Retirement Levy / Hospital Bond
School District Bonds and Loans
Basic County Wide Levy
Page 122 of 138
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Town of Los Gatos Schedule 8
Property Tax Levies and Collections
Last Ten Fiscal Years
Value of
Redevelopment
Agency Value of
Town Redevelopment Total Property Value of Town Property Property
Property Tax Property Tax Tax Levied Property subject Subject to Subject to
Fiscal Levied and Levied and and to Local Tax Local Local
Year Collected Collected Collected Rate Tax Rate Tax Rate
2007 6,386,562$ 7,425,925$ 13,812,488$ 7,034,530,942$ 996,479,040$ 8,031,009,982$
2008 6,901,935 8,072,176 14,974,111 7,594,588,066 1,081,483,541 8,676,071,607
2009 7,465,403 8,574,251 16,039,654 8,166,393,709 1,096,883,582 9,263,277,291
2010 7,608,137 9,022,863 16,630,999 8,317,387,662 1,134,135,499 9,451,523,161
2011 7,567,880 6,861,650 14,429,530 8,262,045,836 1,117,973,351 9,380,019,187
2012 7,520,265 3,349,254 10,869,519 8,369,756,750 1,109,305,673 9,479,062,423
2013 8,253,442 -8,253,442 8,676,688,641 1,167,752,021 9,844,440,662
2014 9,120,626 -9,120,626 9,462,896,402 1,249,873,303 10,712,769,705
2015 9,787,519 -9,787,519 9,995,113,547 1,318,214,863 11,313,328,410
2016 10,388,424 -10,388,424 10,634,839,902 1,395,509,489 12,030,349,391
Sources: Santa Clara County Auditor-Controller Office and the Town of Los Gatos
$7.0
$7.5
$8.0
$8.5
$9.0
$9.5
$10.0
$10.5
$11.0
$11.5
$12.0
$12.5
$13.0
Bi
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Value of Property
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$8.0
$9.0
$10.0
$11.0
$12.0
$13.0
$14.0
$15.0
$16.0
$17.0
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Page 124 of 138
Town of Los Gatos Schedule 9
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
1992 2002 2010
Certificate Certificate Certificate Total Total Percentage of
Fiscal of of of Governmental Primary Personal Per
Year Participation Participation Participation Activities Government Income Capita
2007 1,085,000$ 9,845,000$ -$ 10,930,000$ 10,930,000$ 7.3%372.25
2008 890,000 9,610,000 - 10,500,000 10,500,000 6.2%348.03
2009 685,000 9,370,000 - 10,055,000 10,055,000 5.5%329.70
2010 470,000 9,120,000 15,675,000 25,265,000 25,265,000 19.4%820.24
2011 240,000 8,865,000 15,675,000 24,780,000 24,780,000 19.7%835.72
2012 -----0.0%1)0.00
2013 - - - - - 0.0% 0.00
2014 - - - - - 0.0% 0.00
2015 - - - - - 0.0% 0.00
2016 - - - - - 0.0% 0.00
1)Debt was transferred to the Successor Agency Trust Fund as a part of the RDA dissolution
Governmental Activities
Page 125 of 138
Town of Los Gatos Schedule 10
Direct and Overlapping Governmental Activities Debt
As of June 30, 2016
2015/16 Assessed Valuation: $10,634,839,902
Estimated Share
of Direct and
Debt at Overlapping Debt
DIRECT AND OVERLAPPING BONDED DEBT: % Applicable (1)June 30, 2016 at June 30, 2016
Overlapping Tax & Assesment Debt
Santa Clara County 2.741% 792,585,000$ 21,724,755$
West Valley-Mission Community College District 9.583% 419,930,312$ 40,241,922$
Campbell Union High School District 8.156% 142,765,000$ 11,643,913$
Los Gatos-Saratoga Joint Union High School District 33.340% 70,320,000$ 23,444,688$
Cambrian School District 0.348% 51,874,944$ 180,525$
Campbell Union High School District 8.385% 165,271,229$ 13,857,993$
Los Gatos Union School District 69.945% 94,485,000$ 66,087,533$
Saratoga Union School District 0.037% 33,775,241$ 12,497$
Union School District 20.797% 86,229,020$ 17,933,049$
Midpeninsula Regional Open Space District 4.716% 45,000,000$ 2,122,200$
Santa Clara Valley Water District Benefit Assessment District 2.741% 99,060,000$ 2,715,235$
Total Overlapping Tax and Assesmet Debt 199,964,310$
Overlapping General Fund Debt
Santa Clara County General Fund Obligations 2.741% 683,441,121$ 18,733,121$
Santa Clara County Pension Obligations 2.741% 367,118,349$ 10,062,714$
Santa Clara County Board of Education Certificates of Participation 2.741% 6,380,000$ 174,876$
West Valley-Mission Community College District General Fund Obligations 9.583% 64,180,000$ 6,150,369$
Campbell Union High School District General Fund Obligations 8.156% 15,165,000$ 1,236,857$
Los Gatos-Saratoga Joint Union High School District Certificates of Participation 33.340% 6,260,000$ 2,087,084$
Campbell Union School District General Fund Obligations 8.385% 3,265,000$ 273,770$
Saratoga Union School District Certificates of Participation 0.037% 4,600,000$ 1,702$
Santa Clara County Vector Control District Certificates of Participation 2.741% 2,890,000$ 79,215$
Midpeninsula Regional Open Space Park District General Fund Obligations 4.716% 122,305,886$ 5,767,946$
Total Gross Overlapping General Fund Debt 44,567,654$
Less: Santa Clara County Supported Obligations 10,039,477$
Total Overlapping General Fund Debt 34,528,177$
Overlapping Tax Increment Debt ( Successor Agency)
Town of Los Gatos Certificated of Participations 19,850,000$
Total of Overlapping Tax Increment Debt 19,850,000$
Total Direct Debt $0
Total Gross Overlapping Dept 264,381,964$
Total Net Overlapping Debt 254,342,487$
Gross Combined Total Debt 264,381,964$ (2)
Net Combined Total Debt 254,342,487$
Ratios to 2015/16 Assessed Valuation:
Total Overlapping Tax and Assessment Debt: 1.88%
Total Direct Debt: 0.00%
Gross Combined Total Debt: 2.49%
Net Combined Total Debt: 2.39%
Ratios to redevelpment Incremental Valuation ( $1,151,739,656):
Total Overlapping Tax Increment Debt: 1.72%
Source Data: California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages
were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by
the distric's total taxable asessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue bonds and non-bonded capital lease obligations.
Page 126 of 138
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Town of Los Gatos Schedule 12
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal
Income Per Capita Public County
Fiscal (thousands Personal Median School Unemployment
Year Population of dollars)Income Age Enrollment Rate
Ended (1) (2) (3) (4) (5) (6)
2007 29,362 1,764,862$ 60,107$ 44.64 5,742 4.8%
2008 30,170 1,781,780 59,058 44.86 5,870 6.0%
2009 30,497 1,701,153 55,781 45.35 6,006 11.8%
2010 30,802 1,787,070 58,018 45.09 6,100 11.3%
2011 29,651 1,833,410 61,833 44.22 6,184 10.3%
2012 29,808 1,854,892 62,228 42.64 6,352 8.7%
2013 30,247 2,140,641 70,772 45.80 6,420 6.8%
2014 30,443 2,267,912 74,497 45.80 6,522 5.7%
2015 30,505 2,197,885 72,050 46.10 6,622 3.8%
2016 31,376 907,708 28,930 46.30 6,646 3.5%
Source:
(1) California State Dept. of Finance - Population Research Unit (January 2015)
(2) California State Dept. of Finance - Estimate equals county per capita average times population
(3) California State Dept of Finance - county per capita at: labormarketinfo.edd.ca.gov
(4) Claritas demographic snapshot report
(5) Los Gatos Saratoga Joint Union and Los Gatos Union Elementary School Districts
(6) State of California, Employment Development Dept., Labor Market Info. Div.
Page 128 of 138
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2
9
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1
3
8
Town of Los Gatos Schedule 14
Full-time-Equivalent Employees by Function/Program
Last Ten Fiscal Years
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
Function/Program
General Government 20.75 20.50 19.95 18.35 18.90 20.15 20.40 20.73 20.97 20.97
Police 62.00 61.00 61.00 60.00 59.50 60.50 58.00 57.50 60.00 59.00
Culture and Recreation 4.25 5.25 5.25 5.25 3.25 - - - --
Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 - 0.50 0.63 0.63
Library 10.35 10.35 10.35 10.35 8.60 8.60 8.60 10.30 10.80 11.00
Planning 18.80 18.80 18.80 17.80 15.00 16.00 17.50 17.50 19.50 19.00
Public Works 34.00 34.00 37.00 35.00 32.50 32.00 31.00 31.50 32.00 33.50
Total 151.15 150.90 153.35 147.75 138.75 138.25 135.50 137.53 143.90 144.10
Full-time equivalent employment is calculated as one or more employee positions totaling one full year
of service or approximately 2,080 hours a year.
Full-time-Equivalent Employees as of June 30
Page 130 of 138
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Town of Los Gatos Schedule 16
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
Function/Program
Police
Number of Stations 1 1 1 2 2 2 2 2 2 2
Number of Patrol Units 15 15 15 14 14 14 14 14 14 14
Parking Enforcement Vehicles 3 3 3 2 2 2 2 2 2 2
Other Public Works
Streets (miles) 112 112 112 112 112 112 112 112 112 112
Streetlights 2,190 2,190 2,190 2,112 2,115 2,116 2,116 2,109 1,609 1,609
Traffic Signals 28 28 28 28 28 29 29 29 29 30
Parks and Recreation
Number of Parks 12 12 12 12 12 12 12 12 12 12
Number of Community Centers 1 1 1 1 1 1 1 1 1 1
Parking
Number of Parking Garages 1 1 1 1 1 1 1 1 1 1
Number of Parking Lots 22 22 22 22 22 22 22 22 22 22
Number of Off Street Parking Garage Spaces 1,126 1,126 1,126 1,126 1,126 1,126 1,126 1,126 1,126 1,126
Source: Town of Los Gatos, Finance Department
Fiscal Year
Page 132 of 138
This Page Intentionally Left Blank
Page 133 of 138
Other Independent Auditor’s Reports
Page 134 of 138
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